THIS IS WHAT MADE AMERICA GREAT FOR DECADES THE STOCK MARKET HAS PROVIDED THE SEED MONEY FOR THE NATION'S GREAT ENTERPRISES FROM GENERAL MOTORS TO INTERNATIONAL BUSINESS MACHINES TO MICROSOFT NOW MR CHRISTMAS INC A MAKER OF ELECTROMECHANICAL CHRISTMAS DECORATIONS WANTS TO JOIN THAT HALLOWED COMPANY BY SELLING ITS OWN STOCK TO THE PUBLIC UNDER THE SYMBOL XMAS AND IT ISN'T ALONE ALL ACROSS AMERICA LITTLE COMPANIES ARE SCRAMBLING TO TAP THE PUBLIC'S SEEMINGLY LIMITLESS APPETITE FOR NEW STOCK IDEAS VERMONT TEDDY BEAR CO WHICH CLAIMS TO BE THE LARGEST MAKER OF TEDDY BEARS IN AMERICA WANTS INVESTORS TO ANTE UP AS MUCH AS 85 MILLION TO ENABLE IT TO MAKE MORE BEARS SEVENTH GENERATION INC WHICH SELLS RECYCLED TOILET PAPER NO IT WASN'T TOILET PAPER THE FIRST TIME AROUND IS LOOKING FOR 6 MILLION TO EXPAND TOO TRUTH IS THEY PROBABLY WON'T HAVE ANY TROUBLE INDIVIDUAL INVESTORS ARE ENAMORED OF THE IDEA OF THE QUICK KILLING AND THE REDHOT MARKET FOR INITIAL PUBLIC OFFERINGS OR IPOS IS WHERE THEY ARE HUNTING RIGHT NOW ANYTHING THAT SELLS ON MAIN STREET CAN GO TO WALL STREET SAYS CHARLES RONSON A STOCK PICKER AT THE NEW YORK INVESTMENT FIRM BALESTRA CAPITAL AND PUBLISHER OF THE IPO VALUE MONITOR NEWSLETTER IN FACT MOST STORES IN THE MALLS HAVE ALREADY GONE PUBLIC INDEED THE FRENZY HAS REACHED THE LEVEL AT WHICH INVESTORS SOMETIMES DON'T EVEN KNOW WHAT THEY ARE BUYING RCL CAPITAL CORP RAISED ABOUT 8 MILLION EARLIER THIS WEEK BY SELLING UNITS IN WHAT IS CALLED A BLIND POOL IT IS SAYING IN ESSENCE YOU GIVE US THE MONEY AND WE WILL FIGURE OUT WHAT TO DO WITH IT LATER BUT THERE'S NO ACCOUNTING FOR INVESTMENT TASTES OR FOR THE RESULTS OF THOSE INVESTMENTS ON TUESDAY BOSTON CHICKEN INC BASED NOT IN BOSTON BUT IN NAPERVILLE ILL ASTONISHED THE INVESTMENT COMMUNITY WHEN ITS SHARES CAME OUT AT 20 EACH AND ROCKETED TO 51 FINALLY ENDING THEIR FIRST TRADING DAY AT 4850 THE STOCK HAS SINCE EASED OFF TO 42 AND THERE'S MASTER GLAZIER'S KARATE INTERNATIONAL INC IT SOLD STOCK LAST MONTH ON THE STRENGTH OF A PRESUMED RISE IN THE POPULARITY OF KARATE ALTHOUGH ITS FOUR KARATE CENTERS IN PENNSYLVANIA AND NEW JERSEY AND AN AEROBICFITNESS CENTER HAVE POSTED LOSSES FOR THE PAST YEAR AND A HALF INVESTORS HAVE SWIFTLY BID THE ISSUE SYMBOL KICKU TO 10375 FOR EACH UNIT UP FROM AN INITIAL PRICE OF 4 THEN THERE IS EROX CORP WHICH IS DEVELOPING PERFUMES CONTAINING HUMAN SEX PHEROMONES MYSTERIOUS BODY SECRETIONS THOUGHT TO ATTRACT THE OPPOSITE SEX INVESTORS LOVED IT AT 4 A SHARE AND SOON DROVE IT TO 750 BUT NOW THE STOCK STINKS THE COMPANY REPORTED CUSTOMER RESISTANCE DURING TESTMARKETING AND SHARES PLUNGED TO THE CURRENT PRICE OF 1375 ALL THIS RANKLES SOME SOPHISTICATED MONEY MANAGERS WHO SPEND THEIR LIVES ANALYZING FINANCIAL STATEMENTS IN AN EFFORT TO IDENTIFY A FEW THINGS WORTH BUYING IN A PRICEY MARKET AND SOME THINK THE SILLINESS IN THE INITIALOFFERINGS MARKET IS A SURE SIGN OF THE SPECULATIVE FRENZY THAT OFTEN MARKS THE TOP OF A BULL MARKET IN STOCKS I CAN'T BELIEVE WHAT'S GOING PUBLIC SAYS ART MICHELETTI INVESTMENT STRATEGIST AT BAILARD BIEHL & KAISER IN SAN MATEO CALIF A LOT OF THIS STUFF IS JUST GARBAGE HE SAYS THE SMART MONEYTHE PEOPLE WHO STARTED ALL THESE LITTLE BUSINESSES IS SELLING WHILE A NAIVE PUBLIC THE STUPID MONEY HE CALLS IT IS BUYING BUT WHO CAN BLAME A BUSINESS OWNER FOR SEARCHING OUT MONEY WHEREVER IT'S TO BE FOUND SO FAR THIS YEAR THE NEWISSUES MARKET HAS RAISED AN ASTOUNDING 47 BILLION FOR BUSINESSES LARGE AND SMALL EASILY ECLIPSING THE RECORD 40 BILLION SET IN 1992 AND FOR MANY COMPANIES GETTING STOCK INVESTORS' CASH IS A LOT EASIER THAN PRYING MONEY FROM A LOAN OFFICER TAKE JACK VANDERSCHRIER OF WALLED LAKE MICH AS A STOCKBROKER FOR 20 YEARS MR VANDERSCHRIER SAYS HE WOULDN'T OWN AN IPO THEY'RE VERY RISKY AND I'M VERY UNLUCKY IN STOCKS HE SAYS YET HE IS THINKING ABOUT TAKING PUBLIC HIS LITTLE COMPANY TELECORP PRODUCTS WHICH MAKES SOFTWARE THAT MONITORS INCOMING TELEPHONE CALLS IF YOU ONLY HAVE 1 MILLION IN REVENUES THE BANK WON'T LEND YOU 4 OR 5 MILLION HE SAYS THE PUBLIC WILL AND COMPANIES THAT WANT TO GO PUBLIC CAN BE EXCEEDINGLY PERSISTENT BEVERLY HILLS GUN CLUB INC WHICH ISN'T LOCATED IN BEVERLY HILLS BUT NEVER MINDFIRST TRIED SIX MONTHS AGO TO RAISE 55 MILLION TO EXPAND ITS FIRINGRANGE BUSINESS BEYOND THE SINGLE FACILITY IT OWNS IT HAS FILED NEW OFFERING DOCUMENTS WITH THE SECURITIES AND EXCHANGE COMMISSION TWICE SINCE THEN AND MOST RECENTLY UPDATED ITS FINANCIAL STATEMENTS WHILE TRIMMING ITS TARGET TO ABOUT 49 MILLION NOW THE COMPANY IS RESORTING TO A BESTEFFORTS OFFERING SOMETHING OF A LASTDITCH ATTEMPT UNLIKE MOST PUBLIC OFFERINGS IN WHICH A GROUP OF UNDERWRITERS BUY ALL THE STOCK IN ONE FELL SWOOP AND THEN RESELL IT TO THE PUBLIC IN A BESTEFFORTS OFFERING THE UNDERWRITERS DRIBBLE THE SHARES OUT AS DEMAND WARRANTS IF THERE IS ANY DEMAND NOT SURPRISINGLY SOBERSIDED INVESTMENT ADVISERS REPEATEDLY WARN THE PUBLIC ABOUT THE NEWISSUES MARKET THEY POINT OUT THAT THE ONLY DEALS IN WHICH MOST INDIVIDUAL INVESTORS CAN GET IN ON THE GROUND FLOOR ARE THE ONES THAT THE BIG INSTITUTIONS WON'T TOUCH IT'S LIKE THE OLD GROUCHO MARX JOKE SAYS M WILLIAM BENEDETTO OF THE NEW YORK INVESTMENT FIRM BENEDETTO GARTLAND & GREENE INC I WOULDN'T WANT TO BE A MEMBER OF ANY CLUB THAT LETS ME IN WARNS JOHN MARKESE PRESIDENT OF THE AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS BUYING IPOS IS LIKE TRYING TO HIT A MILLION DOLLARS ON THE SLOT MACHINES IN VEGAS YOU'LL PLAY MANY MANY TIMES AND HIT NOTHING BUT VETERANS OF THE IPO GAME KEEP COMING BACK FOR MORE W ROGER HAZARD OF FORT PIERCE FLA ADMITS THAT I'VE GOTTEN BURNED ON IPOS HIS LATEST BLISTERING NATHAN'S FAMOUS A WESTBURY NY HOTDOG CHAIN THAT INITIALLY SOLD STOCK FOR 9 A SHARE THE SHARES QUICKLY CLIMBED AS HIGH AS 12 AND MR HAZARD JUMPED IN AS THEY WERE RISING NOW THEY HAVE FALLEN BACK ALMOST TO THE INITIAL OFFERING PRICE THE TRICK SAYS MR HAZARD IS TO GET IN EARLY AND GET OUT FAST YOU HAVE TO BUY THEM BEFORE THEY START GOING UP AND THEN YOU HAVE TO SELL RIGHT AWAY BEFORE THEY GO DOWN 9311120073 931112 BUSINESS BRIEF ALPINE GROUP INC COMPANY COMPLETES MERGER WITH SUPERIOR TELETEC INC ALPINE GROUP INC SAID IT COMPLETED ITS MERGER WITH SUPERIOR TELETEC INC NOW A WHOLLY OWNED SUBSIDIARY SHAREHOLDERS OF SUPERIOR TELETEC WILL RECEIVE 0696 OF A SHARE OF ALPINE COMMON STOCK FOR EACH SUPERIOR TELETEC SHARE OR THEY MAY ELECT TO RECEIVE 0461 OF AN ALPINE SHARE AND 250 IN CASH WITH CERTAIN LIMITATIONS THE DEAL IS VALUED AT APPROXIMATELY 62 MILLION JAMES R KANELY FORMERLY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SUPERIOR TELETEC IS NOW PRESIDENT AND CHIEF OPERATING OFFICER OF ALPINE ALPINE IN NEW YORK IS A TELECOMMUNICATIONS INFORMATION DISPLAY AND DATA COMMUNICATIONS COMPANY SUPERIOR TELETEC IN ATLANTA GA MAKES AND SELLS TELECOMMUNICATION PRODUCTS 9311120071 931112 BELLSOUTH CORP AGREES TO BACK QVC NETWORK INVESTMENT OF 15 BILLION IS EXPECTED TO INCREASE BID MADE FOR PARAMOUNT BY JOHNNIE L ROBERTS AND LESLIE CAULEY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK BELLSOUTH CORP JOINED THE BATTLE FOR PARAMOUNT COMMUNICATIONS INC BY AGREEING TO INVEST 15 BILLION IN QVC NETWORK INC THE INTRICATE PACT REARRANGES QVC'S OWNERSHIP AND HELPS REMOVE ANTITRUST OBSTACLES TO QVC'S BID FOR PARAMOUNT POSED BY QVC'S LARGEST SHAREHOLDER LIBERTY MEDIA INC LIBERTY WHICH HAS TIES TO THE CONTROVERSIAL CABLE TELEVISION GIANT TELECOMMUNICATIONS INC REACHED A TENTATIVE AGREEMENT WITH THE FEDERAL TRADE COMMISSION TO DIVEST ITSELF OF ITS QVC INTEREST CLEARING THE WAY FOR THE AGENCY TO GRANT ANTITRUST APPROVAL TO QVC'S BID AS PART OF ITS INVESTMENT BELLSOUTH WOULD ASSUME A BIG FINANCIAL COMMITMENT OF LIBERTY'S TO BACK QVC'S BID AND THE TELEPHONE GIANT WILL REPLACE LIBERTY AS ONE OF THREE BIG SHAREHOLDERS WHO SHARE CONTROL OF QVC INDEED THE TELEPHONE COMPANY WILL SHARE VOTING CONTROL OF QVC WITH BARRY DILLER QVC'S CHAIRMAN AND SHAREHOLDER COMCAST CORP ARMED WITH BELLSOUTH'S NEW BACKING QVC IS WIDELY EXPECTED TO SWEETEN ITS 96 BILLION OFFER FOR PARAMOUNT AN ENTERTAINMENT AND PUBLISHING GIANT BEFORE A CRUCIAL DELAWARE COURTROOM SHOWDOWN NEXT TUESDAY THE HOMESHOPPING GIANT WHICH FILED ITS WRITTEN ARGUMENT WITH THE COURT IS CHALLENGING AS UNFAIR PARAMOUNT'S AGREEMENT TO BE ACQUIRED BY VIACOM INC WHICH HAS A 101 BILLION OFFER ON THE TABLE THE PACT INCLUDES PROVISIONS THAT WOULD ADD MORE THAN 600 MILLION TO QVC'S COST OF WINNING THE BATTLE THE BELLSOUTH INVESTMENT WOULD GIVE QVC THE CASH TO BOOST ITS CURRENT 7702PERSHARE OFFER BY 8 A SHARE TO 8502 ECLIPSING VIACOM'S PENDING 8141ASHARE BID BUT OBSERVERS HAVE SAID QVC MIGHT HAVE TO OFFER AS MUCH AS 90 A SHARE TO DERAIL VIACOM'S FRIENDLY OFFER QVC OFFICIALS DECLINED TO COMMENT ON THEIR NEXT MOVE THOUGH THEY APPARENTLY DISCUSSED THEIR STRATEGY AT A BOARD MEETING SAID A LARGE QVC SHAREHOLDERTHEY DIDN'T GO THROUGH ALL THIS TO DECLARE DEFEAT BELLSOUTH'S LONGAWAITED ENTRY AFTER IT HAD DISCUSSED JOINING THE VIACOM SIDE AND MAKING A RIVAL BID ON ITS OWN MARKS THE FIRST TIME ONE OF THE SEVEN BABY BELL TELEPHONE COMPANIES HAS BEEN INVOLVED IN A HOSTILE TAKEOVER FIGHT IT ALSO THRUSTS BELLSOUTH INTO THE RACE TO ENTER THE INTERACTIVE AGE AS PART OF THE PACT BELLSOUTH AND ITS NEW PARTNERS WILL FORM A JOINT VENTURE TO DEVELOP AN INTERACTIVE GATEWAY TO DELIVER ALL KINDS OF VIDEO SHOPPING SERVICES AND INFORMATION SERVICES INTO HOMES NATIONWIDE UNDER THE PLAN BELLSOUTH WOULD END UP WITH ABOUT A 14 STAKE IN QVC IN RETURN FOR ITS 15 BILLION INVESTMENT MAKING IT ONE OF THE TWO LARGEST SHAREHOLDERS IN THE HOMESHOPPING COMPANY COMCAST IS THE OTHER BELLSOUTH WOULD PAY 1 BILLION FOR NEW COMMON STOCK AND ASSUME THE COMMITMENT OF LIBERTY MEDIA QVC'S LARGEST SHAREHOLDER TO INVEST ANOTHER 500 MILLION IN THE PARAMOUNT BID LIBERTY'S INVOLVEMENT HAD BEEN A MAJOR STICKING POINT WITH FEDERAL ANTITRUST REGULATORS BECAUSE OF ITS LINKS TO TELECOMMUNICATIONS BOTH TELECOMMUNICATIONS AND ITS LIBERTY MEDIA SPINOFF HAVE AGREED TO BE ACQUIRED BY BELL ATLANTIC CORP TO APPEASE THE FEDERAL TRADE COMMISSION LIBERTY HAS TENTATIVELY AGREED TO A PROPOSED CONSENT DECREE CALLING FOR IT TO DROP OUT OF THE PARAMOUNT BID AND IF THE BID SUCCEEDS TO ULTIMATELY SELL OFF THE SIZABLE STAKE IT HOLDS IN QVC THE FTC STAFF ENDORSED THE DECREE BUT FTC COMMISSIONERS MUST APPROVE IT IF QVC'S BID SUCCEEDS LIBERTY WHICH IS CONTROLLED BY JOHN C MALONE TCI'S CHIEF EXECUTIVE OFFICER WOULD HAVE TO SELL ITS QVC HOLDINGS WITHIN 18 MONTHS THE TERMS WOULD PAY A HANDSOME PREMIUM TO TCI BASED ON TODAY'S PRICES LIBERTY WOULD BE ALLOWED TO SELL ITS REMAINING QVC STAKE OF ROUGHLY 14 ON THE OPEN MARKET OR SELL IT TO QVC AT 60 A SHARE YESTERDAY QVC STOCK CLOSED AT 5125 A SHARE IN NASDAQ STOCK MARKET TRADING QVC'S STAKE HAD TOTALED ABOUT 22 BUT COMCAST AND MR DILLER ARE BUYING ABOUT ONETHIRD OF THE HOLDING UNDER A PREVIOUS AGREEMENT AS PART OF LIBERTY'S WITHDRAWAL FROM QVC MR MALONE AND PETER BARTON LIBERTY'S PRESIDENT ALSO RESIGNED FROM THE QVC BOARD MR BARTON SAID LIBERTY AGREED TO LEAVE RELUCTANTLY ADDING WE WOULDN'T HAVE DONE THIS IF WE DIDN'T THINK BARRY DILLER WAS GOING TO WIN BUT IF QVC'S PITCHED BATTLE FOR PARAMOUNT FALTERS LIBERTY CAN RETAIN ITS STAKE IN THE HOMESHOPPING COMPANY BELLSOUTH FOR ITS PART THEN WOULD HAVE THE RIGHT TO INVEST 500 MILLION IN QVC RATHER THAN 15 BILLION IT PLEDGED YESTERDAY FOR THE 15 BILLION PRICE BELLSOUTH WOULD ASSUME LIBERTY MEDIA'S ROLE IN THE TRIUMVIRATE THAT CONTROLS QVC ITS TWO PARTNERS WOULD BE CABLE COMPANY COMCAST AND MR DILLER THE ISSUE OF HOW MUCH OF A VOICE BELLSOUTH WOULD HAVE IN QVC'S AFFAIRS HAD BEEN A NETTLESOME POINT THROUGHOUT THE NEGOTIATIONS BETWEEN THE TWO COMPANIES IN WINNING THE RIGHT TO JOIN THE TRIUMVIRATE CONTROLLING QVC BELLSOUTH APPEARS TO HAVE WON A BIGGER SAY THAN SOME OTHER BELL RIVALS HAVE GAINED IN OTHER MEDIA INVEST MENTS OF THEIR OWN NYNEX CORP FOR EXAMPLE HAS AGREED TO INVEST 12 BILLION ON THE VIACOM SIDE GETTING IN RETURN ONLY A DIVIDEND ON PREFERRED STOCK AND AN EXCLUSIVE OPPORTUNITY TO NEGOTIATE OTHER BUSINESS TIES SHOULD QVC'S BID FOR PARAMOUNT FAIL BELLSOUTH WOULD REMAIN INTERESTED IN EXPLOITING TIES TO QVC AND ITS EXPERTISE IN DEVELOPING INTERACTIVE SERVICES AND IN THE CREATIVE SIDE OF THE ENTERTAINMENT BUSINESS WE THINK IT'S THE BEGINNING OF A GREAT RELATIONSHIP JOHN CLENDENIN BELLSOUTH'S CHAIRMAN AND CHIEF EXECUTIVE SAID IN AN INTERVIEW IT LEADS TO OUR VISION OF THE INTERACTIVE FUTURE THAT WE SEE COMING BUT HE WOULDN'T SAY WHETHER BELLSOUTH WOULD DEFININTELY MAKE THE 500 MILLION INVESTMENT WHICH WOULD GIVE IT A 127 STAKE IN QVC IF QVC'S BID FOR PARAMOUNT FAILS MR CLENDENIN ACKNOWLEDGED THE COMBINATION WITH QVC WOULD BE ALL THE MORE ATTRACTIVE WITH PARAMOUNT IN THE MIX HE DESCRIBED THE MOVIE STUDIO AS ONE OF THOSE UNIQUE PROPERTIES THAT HAS A TREMENDOUSLY IMPORTANT CAPABILITY PROVEN IN THE ENTERTAINMENT WORLD FOR QVC LANDING THE BELLSOUTH INVEST MENT ROUNDS OUT AN IMPRESSIVE ARRAY OF BACKERS IT HAS LINED UP A 500 MILLION INFUSION FROM ADVANCE PUBLICATIONS INC WHICH OWNS CABLE SYSTEMS NEWSPAPERS MAGAZINES AND BOOK PUBLISHING AND 500 MILLION FROM COX ENTERPRISES INC WHICH OWNS CABLE AND NEWSPAPER PROPERTIES AS WELL AS 500 MILLION FROM PARTNER COMCAST BELLSOUTH PROVIDES TELEPHONE SERVICE TO CUSTOMERS VIA SOME 187 MILLION LINES IN NINE STATES ACROSS THE SOUTHEAST WHILE PARAMOUNT COMMUNICATIONS OWNS A MOVIE STUDIO TELEVISION PRODUCTION OPERATIONS BOOK PUBLISHING THEME PARKS TV STATIONS MADISON SQUARE GARDEN AND THE NEW YORK KNICKS AND RANGERS SPORTS TEAMS BELLSOUTH'S MR CLENDENIN SAID HE HAD CONSIDERED MAKING A SEPARATE INDEPENDENT BID FOR PARAMOUNT BUT HE DISMISSED THE IDEA BECAUSE WORKING WITH OTHER COMPANIES WAS MORE COMPELLING BELLSOUTH GAINS A GREAT DEAL BY THE SYNERGIES THAT WILL BE DEVELOPED IN THAT PARTNERSHIP IT'S A BROADER KIND OF ARRANGEMENT THAN IF WE WERE ALONE HE SAID THE MOVE HOWEVER DREW MIXED RESPONSES ON WALL STREET WHERE ANALYSTS HAVE BEEN DEBATING THE WISDOM OF THE PROPOSED DEAL FOR WEEKS JACK GRUBMAN OF PAINEWEBBER SAID HE COULDN'T SEE WHY BELLSOUTH OR ANY BABY BELL WOULD WANT A STAKE IN PARAMOUNT IN THE BELL ATLANTICTCI DEAL HE SAID EACH PLAYER BROUGHT SOME BADLY NEEDED BUSINESS EXPERTISE TO THE OTHER AND BELL ATLANTIC CAN DOUBLE ITS CUSTOMER BASE SUCH ADVANTAGES AREN'T IMMEDIATELY EVIDENT IN A BELLSOUTHQVC DEAL MR GRUBMAN SAID HOW IS BELLSOUTH GOING TO HELP PARAMOUNT MAKE BETTER MOVIES OR PUBLISH BETTER BOOKS HE SAID THEY'RE NOT AND WHAT CAN PARAMOUNT DO FOR BELLSOUTH NOTHING MR GRUBMAN ATTRIBUTED THE BELLSOUTH DEAL IN PART TO THE FEEDING FRENZY THAT HAS INVADED THE EXECUTIVE SUITES OF MANY BELL OFFICES IN THE AFTERMATH OF THE BELL ATLANTICTCI MERGER AGREEMENT THERE ARE DEALS THAT ARE BEING DONE THAT SHOULDN'T BE DONE MR GRUBMAN SAID I THINK THIS IS ONE OF THEM HE FURTHER QUESTIONS THE LOFTY VALUE THAT QVC'S BID ASSIGNS TO PARAMOUNT THE EQUIVALENT OF UP TO 20 TIMES PARAMOUNT'S ANNUAL CASH FLOW COMPARED WITH 10 TO 12 TIMES CASH FLOW FOR ENTERTAINMENT COMPANIES BELLSOUTH EXECUTIVES WHEN PRESSED BY THE ANALYST TO JUSTIFY THE HIGH PRICE CONCEDED THAT PARAMOUNT WOULD HAVE TO SUBSTANTIALLY IMPROVE ITS FINANCIAL PERFORMANCE OR ELSE THE NUMBERS WON'T WORK BUT MARION BOUCHER OF DONALDSON LUFKIN & JENRETTE COUNTERED THAT THE DEAL WAS A CRITICAL STEP TO PREPARING BELLSOUTH FOR THE FUTURE INTERACTIVE WORLD THE OTHER SIX BABY BELLS RIGHTFULLY WORRY THAT THERE MIGHT BE A SCARCITY OF PROGRAMMING FARE IN THE AFTERMATH OF THE PROPOSED BELL ATLANTICTCI MERGER DOWN THE ROAD THAT CONTENT COULD BE WHAT MAKES YOUR PRODUCT BETTER THAN SOMEBODY ELSE'S SHE SAID THE FACT THAT BELLSOUTH DECIDED TO JOIN A HOSTILE BID UNHEARD OF IN THE PAST ALSO SIGNALS THAT THE BABY BELLS AREN'T GOING TO SHY AWAY FROM GRABBING BUSINESS OPPORTUNITIES AS THEY SEE FIT IN THE FUTURE THEY'RE BASICALLY SAYING MS BOUCHER SAID WE AREN'T THE OLD BELL COMPANIES ANYMORE THAT YOU MAY HAVE BELIEVED US TO BE 9311120070 931112 PERFUME PRODUCERS IN BRITAIN COME OUT SMELLING LIKE A ROSE PANEL'S RULING BACKS CONTROLS ON PRICING BUT OPPONENTS SAY IT DOESN'T MAKE SCENTS BY SHOBA PURUSHOTHAMAN SPECIAL TO THE WALL STREET JOURNAL LONDON BRITAIN'S MONOPOLIES AND MERGERS COMMISSION RULED YESTERDAY THAT SMELLING NICE SHOULDN'T COME CHEAP AND SOME RETAILERS AND CONSUMER GROUPS SAY THAT STINKS THE WATCHDOG COMMISSION RULED THAT EUROPE'S MOST PRESTIGOUS PERFUME HOUSES CAN CONTINUE TO EXERCISE VARIOUS PRICE AND DISTRIBUTION CONTROLS BECAUSE THEIR BRAND IMAGES SHOULD BE PROTECTED ACCORDING TO THE COMMISSION CUSTOMERS VALUE THE CACHET OF BRAND IMAGE ENOUGH TO BE WILLING TO PAY THROUGH THEIR NOSES THE FINDINGS ARE A VICTORY FOR THE PERFUME MANUFACTURERS AND MEAN THAT DISCOUNTERS WHO HAVE BEEN SELLING THESE PERFUMES AS MUCH AS 30 CHEAPER WILL STILL HAVE TO SOURCE SUPPLIES THROUGH UNOFFICIAL MIDDLEMEN AS EUROPE'S TOP PERFUMERIES CONTINUE TO REFUSE TO SELL TO THEM THE MMC HAS SWALLOWED THE PERFUME COMPANIES' ARGUMENTS HOOK LINE AND SINKER SAYS PHILIP CULLUM THE CONSUMERS' ASSOCIATION RESEARCH MANAGER IT IS AN INCONSISTENT INCOHERENT AND BADLY ARGUED REPORT ACKNOWLEDGING THAT A COMPLEX MONOPOLY SITUATION EXISTS IN FAVOR OF A NUMBER OF SUPPLIERS OF FINE FRAGRANCES THE REGULATORY AUTHORITY WHICH IS VESTED WITH POWERS TO DISARM MONOPOLIES CONCLUDED THAT THIS SITUATION ISN'T AGAINST PUBLIC INTEREST THE MMC CARRIED OUT AN INVESTIGATION AFTER REPEATED COMPLAINTS BY A LEADING DISCOUNTER SUPERDRUG WHICH IS OWNED BY KINGFISHER PLC SUPERDRUG HAS CHARGED THAT TOP PERFUME HOUSES SUCH AS CHANEL YVES ST LAURENT AND GIVENCY USE RESTRICTIVE DISTRIBUTION METHODS TO PREVENT IT FROM SELLING THESE BRANDNAME PERFUMES CHEAPLY PERFUME MAKERS HOWEVER SAY THEY DON'T SUPPLY THE LIKES OF SUPERDRUG NOT BECAUSE THEY'RE AGAINST DISCOUNTING BUT BECAUSE SUCH STORES DON'T HAVE THE PROPER ENVIRONMENT BEFITTING SUCH LUXURY ITEMS THE MMC REPORT FULLY SUPPORTS OUR POSITION SAYS COLIN WHITTEN DEPUTY CHAIRMAN OF CHANEL UK HE INSISTED THAT THE SOLE REASON WHY WE WON'T SELL TO SUPERDRUG IS BECAUSE OUR CUSTOMERS HONESTLY DON'T BELIEVE SUCH OUTLETS ARE SUITABLE THE MMC CONCURS SAYING THAT BECAUSE FINE PERFUME IS MARKETED AS A LUXURY ITEM SUPPLIERS NEED TO BE ABLE TO CONTROL DISTRIBUTION TO PROTECT BRAND IMAGES WHICH CUSTOMERS EVIDENTLY VALUE NOTING THAT THERE'S NO SHORTAGE OF CHEAP PERFUME THE MMC SAID THAT THE INDUSTRY IS COMPETITIVE AND THE SUPPLIERS' SELECTIVE DISTRIBUTION SYSTEM AS A WHOLE ISN'T OPERATING AGAINST THE PUBLIC INTEREST BILL JONES A SPOKESMAN FOR SUPERDRUG SAYS THE COMPANY WAS BITTERLY DISAPPOINTED BY THE MMC RULING AND ADDED THAT IT BELIEVES OVERWHELMINGLY THAT THIS IS AGAINST THE PUBLIC INTEREST HE SAID SUPERDRUG WAS CONSIDERING VARIOUS STEPS NEXT INCLUDING TAKING THE MATTER TO THE EUROPEAN COMMISSION JUST HOW MUCH SYMPATHY THE EC WILL HAVE IS DEBATABLE IN EARLY 1992 THE COMMISSION GRANTED YVES ST LAURENT AND GIVENCY PERMISSION NOT TO SELL PERFUME TO RETAILERS ON GROUNDS RELATING TO ENVIRONMENT OF THE STORES THE EC HOWEVER DID SAY THAT PRICE DISCRIMINATION WASN'T ALLOWED MEANWHILE SUPERDRUG SAYS IT INTENDS TO CONTINUE TO BUY PERFUMES IN THE GRAY MARKET FROM WHOLESALERS WILLING TO BREACH THEIR CONTRACTS WITH THE PERFUME HOUSES SUPERDRUG SAYS THAT THIS PLACES A LIMIT AS TO HOW QUICKLY IT CAN INCREASE MARKET SHARE ACCORDING TO MR JONES IN 1992 THE FIRST YEAR THAT THE COMPANY BEGAN TO MARKET FINE PERFUME ITS 20 STORES MANAGED TO GRAB 5 OF THE TOTAL 400MILLION 5914 MILLION MARKET IN THE UK THIS YEAR 60 SUPERDRUG STORES CARRY FINE PERFUMES AND THE COMPANY IS EXPECTING MARKET SHARE TO INCREASE TO 10 ACCORDING TO INDUSTRY SOURCES ABOUT 15 OF THE TOTAL UK MARKET GETS ITS PERFUME FROM THE GRAY MARKET IT IS SOMETHING THAT IS CREATED BY THE MANUFACTURERS THEMSELVES MR JONES SAYS IN ANY MARKET WHERE THE PRICE IS HELD ARTIFICIALLY HIGH THE GRAY MARKET WILL CONTINUE THE MANUFACTURERS SELL TO AUTHORIZED RETAILERS AT HALF THE RETAIL PRICE AND AFTER ACCOUNTING FOR VALUEADDED TAX INDUSTRY SOURCES SAY RETAILERS MAKE ABOUT 30 IN PROFIT THIS MARKUP DISCOUNTERS SAY IS A DETERRENT TO MANY CUSTOMERS ACCORDING TO SUPERDRUG WHAT IT LOSES OUT ON PROFIT MARGIN IT MORE THAN MAKES UP FOR IN VOLUME BY SELLING PERFUMES CHEAPLY INDEED FOR MANY THE ONLY CHANEL ITEM THAT IS AFFORDABLE IS A 30 BOTTLE OF TOILET WATER DISCOUNTERS WERE HOPING THAT A FAVORABLE MMC RULING WOULD COME IN TIME FOR THE CHRISTMAS SEASON THE SIX WEEKS LEADING UP TO CHRISTMAS ACCOUNT FOR HALF THE ANNUAL SALES OF PERFUME IN THE UK SANOFI GROUP WHICH MARKETS YVES ST LAURENT OSCAR DE LA RENTA AND VAN CLEEF & ARPELS APPLAUDED THE MMC DECISION IT SAID THE QUESTION OF REMEDIES OR RECOMMENDATIONS TO CURRENT MARKET PRACTICE IS NOW IRRELEVANT THE MMC IS PART OF THE DEPARTMENT OF TRADE AND INDUSTRY IN BRITAIN AND HAS INVESTIGATED THE PERFUME INDUSTRY BEFORE THIS LATEST REPORT WAS INITIALLY EXPECTED TO COME DOWN ON THE SIDE OF THE DISCOUNTERS THE REPORT'S BIAS TOWARD SUPPLIERS COMES AS MANY OTHER AREAS OF BRITISH RETAILING ARE CRUMBLING UNDER THE PRESSURES OF DISCOUNTERS 9311120069 931112 HEARD ON THE STREET GENERAL MOTORS BULLS BELIEVING AUTO MAKER IS POISED FOR A TURNAROUND DRIVE UP STOCK BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT SUDDENLY GENERAL MOTORS HAS TURNED A LOT HOTTER ON WALL STREET THAN IN ITS LONGSUFFERING NEWCAR SHOWROOMS AFTER SPURTING 2 1/2 WEDNESDAY AND HITTING A 52WEEK HIGH OF 51 3/4 YESTERDAY GM CLOSED AT 50 3/4 OFF 3/8 YESTERDAY'S VOLUME OF ALMOST 55 MILLION SHARES PUT THE STOCK ON THE MOSTACTIVE LIST FOR THE SECOND DAY IN A ROW THE STOCK IS POISED TO GO HIGHER IF YOU BELIEVE THE GM BULLS DAZZLED BY PREDICTIONS THAT GM COULD RISE AN ADDITIONAL 20 OR MORE WITHIN 12 TO 18 MONTHS SOME INSTITUTIONAL INVESTORS HAVE DECIDED NOW IS THE TIME TO GET OFF THE SIDELINES THESE ANALYSTS SAY ONE THING THAT GAVE THEM A NUDGE APPARENTLY WAS A BUY RECOMMENDATION WEDNESDAY BY JAMES ALEXANDRE OF DONALDSON LUFKIN & JENRETTE WHO ESTIMATES THE STOCK COULD TOP OUT AT 80 OR 90 IN THE NEXT TWO OR THREE YEARS NONSENSE REPLY A STUBBORN MINORITY OF GM BEARS I HAD THE STOCK VALUED AT 51 EVEN WHEN IT WAS 40 AND THAT'S WHAT I THINK IT'S WORTH SAYS RONALD GLANTZ AUTO ANALYST WITH DEAN WITTER REYNOLDS CITING CONCERN OVER GM'S 24 BILLION UNFUNDED PENSION LIABILITY HE RATES GM A HOLD AND ARGUES THAT FORD MOTOR AND CHRYSLER ARE BETTER BUYS SO DOES DAVID HEALY AT SG WARBURG WHY THE OTHERS' ENTHUSIASM FOR WHAT IS AFTER ALL STILL AMERICA'S SICKEST CAR MAKER WALL STREET ANALYSTS CITE A CONFLUENCE OF DEVELOPMENTS INCLUDING A BETTERTHANEXPECTED THIRD QUARTER A GROWING FEELING THAT GM'S NEW LABOR CONTRACT WILL WORK DECLINING ALARM ABOUT THE UNFUNDEDPENSION LIABILITY AND RISING CONFIDENCE IN MANAGEMENT'S ABILITY TO PULL OFF A TURNAROUND INVESTORS AND ANALYSTS ARE EXPECTING GOOD NEWS AND AN ENCOURAGING PROGRESS REPORT WHEN TOP GM BRASS HOLD THEIR ANNUAL ANALYSTS' BRIEFING TUESDAY IN NEW YORK SPECIFICALLY THERE IS SPECULATION THAT GM WILL ANNOUNCE FURTHER DIVESTITURES IN ITS NONCOMPETITIVE PARTSMAKING OPERATIONS AND THEN THERE ARE THE ENVIRONMENTAL FACTORS THE ECONOMY'S SLOW STEADY EXPANSION IS SEEN AS GOOD FOR THE AUTO INDUSTRY THE JAPANESE AUTO MAKERS ARE GRAPPLING WITH HUGE COMPETITIVE HANDICAPS AND SOME INVESTORS ARE BETTING THAT THE NORTH AMERICAN FREE TRADE AGREEMENT WILL PASS FURTHER HELPING GM MARKET EXPERTS SAY THAT IN GOING OVER 50 THE ISSUE BROKE A TECHNICAL BARRIER AND NOW IS POSITIONED TO RISE EVEN HIGHER THE BOTTOM LINE SAYS SALOMON BROTHERS' JACK KIRNAN IS THAT DESPITE CURRENT PROBLEMS GM APPEARS POISED FOR A BURST OF PROFITABILITY HE ENVISIONS PERSHARE NET INCOME MORE THAN DOUBLING NEXT YEAR TO 550 THEN RISING TO 750 FOR 1995 AND 10 FOR 1996 IF SO HE SAYS THE STOCK COULD EASILY HIT 75 DLJ'S MR ALEXANDRE ALSO SEES EARNINGS ACCELERATION PEAKING AT 11 THERE IS GROWING RECOGNITION THAT GM'S RESTRUCTURING PROGRAM HAS SOME REAL BITE MR KIRNAN SAYS MANAGEMENT IS SHOWING THAT IT CAN DELIVER ON A PLAN AND DELIVER ON TIME SUCH VIEWS RUN COUNTER TO RECENT INDICATIONS OF DISARRAY AT GM INCLUDING A NEWMODEL LAUNCH DISRUPTED BY PARTS SHORTAGES AN ERODING MARKET SHARE IN NORTH AMERICA AND DISAPPOINTMENT WITH THE LABOR AGREEMENT BUT MR KIRNAN AND OTHERS CALL SUCH SIGNALS MISLEADING TAKE THE LABOR AGREEMENT EVEN THOUGH GM HAD TO SWALLOW THE UNITED AUTO WORKERS' PATTERN CONTRACT NEGOTIATED AT FORD MOTOR THE NO 1 AUTO MAKER MANAGED TO GET PROVISIONS THAT WILL HELP IT CUT THE WORK FORCE AND PUT ITSELF ON A PAR WITH FORD ON PLANT PRODUCTIVITY BY 1996 MR KIRNAN MAINTAINS MR ALEXANDRE FIGURES THAT GM HAS CUT 3 BILLION TO 35 BILLION IN COSTS IN NORTH AMERICAN AUTO OPERATIONS SO FAR THIS YEAR HE EXPECTS MORE SAVINGS FROM NEW MODELS THAT ARE EASIER TO MAKE USING FEWER PARTS THEY ARE IMPLEMENTING A NEW APPROACH TO BUILDING CARS HE SAYS I EXPECT THEM TO MOVE QUICKLY TO EXIT AND DIVEST UNPROFITABLE OPERATIONS IN THE PARTSMAKING UNITS MR ALEXANDRE ADDS SOME ANALYSTS EXPECT DISCLOSURES TUESDAY ON THAT SCORE WHAT ALL THIS WILL PRODUCE THESE ANALYSTS SAY IS ENORMOUS FREE CASH FLOW AFTER DIVIDENDS CAPITAL SPENDING AND REQUIRED PAYMENTS TO THE PENSION FUND GM SHOULD GENERATE AT LEAST 15 BILLION IN CASH FLOW IN 19941996 MR KIRNAN CALCULATES THE MONEY WILL BE THERE TO MAKE A HUGE DENT IN THE PENSION LIABILITY THAT'S ONE PLACE SKEPTICS DIFFER MY ONLY PROBLEM IS THE PENSION LIABILITY SAYS DEAN WITTER'S MR GLANTZ HE FIGURES GM WILL HAVE TO PUMP 4 BILLION TO 6 BILLION INTO THE PENSION FUND IN THE NEXT SEVERAL YEARS MONEY THAT WON'T BE AVAILABLE FOR DIVIDENDS AND INVESTMENT IN NEW PRODUCTS NEW PRODUCTS ARE GM'S WEAK LINK EVEN THE BULLS ACKNOWLEDGE THEY HOPE FOR A GLIMPSE OF GM'S STRATEGY TUESDAY SAYS MR KIRNAN PEOPLE HAVE TO COME AWAY CONVINCED THAT THEY HAVE A PRODUCT PLAN THAT WILL WORK NINE MONTHS ENDED SEPT 30 1993 THIRD QUARTER SEPT 30 1993 AVERAGE DAILY TRADING VOLUME COMMON SHARES OUTSTANDING 9311120068 931112 PROTEST BY TRUCKERS HAS LITTLE EFFECT ON SHIPPERS A WALL STREET JOURNAL NEWS ROUNDUP THE FIRST DAY OF A WEEKLONG PROTEST CALLED BY INDEPENDENT TRUCK DRIVERS APPEARS TO HAVE HAD MINIMAL EFFECT ON SHIPPERS THERE WERE REPORTS OF TRUCKS BEING FIRED UPON OR HIT BY ROCKS THE OHIO STATE HIGHWAY PATROL CONFIRMED THAT TWO TRUCKS WERE DAMAGED BY GUNFIRE BUT SAID THE DRIVERS WEREN'T INJURED SHIPPERS AND BIG TRUCK COMPANIES SAID BUSINESS WAS FAIRLY NORMAL A SPOKESMAN FOR THE NATIONAL INDUSTRIAL TRANSPORTATION LEAGUE WHICH REPRESENTS ABOUT 1500 SHIPPERS SAID AT THIS POINT WE HAVEN'T SEEN ANY EVIDENCE OF A TRUCK STRIKE IN NEW YORK CITY JOEL FIERMAN PRESIDENT OF THE HUNTS POINT TERMINAL PRODUCE COOPERATIVE ASSOCIATION INC SAID 5 TO 6 OF OUR INBOUND TRUCK SHIPMENTS HAVEN'T ARRIVED DUE TO THE REPORTED SHUTDOWN IF DRIVERS WERE REALLY GOING TO TAKE THIS INTO A FULL PROTEST I THINK WE WOULD HAVE BEEN MISSING QUITE A FEW MORE SHIPMENTS SOME GROUPS OF INDEPENDENT TRUCKERS HAD CALLED FOR A SHUTDOWN TO PROTEST HIGHER DIESEL FUEL PRICES LOWERED WORKING CONDITIONS AND MOUNTING GOVERNMENT REGULATION OF THEIR RIGS AND PERFORMANCE BUT THE EFFORT HAS BEEN MARKED BY LOOSE ORGANIZATION AND LACK OF SUPPORT FROM MAJOR TRUCK COMPANIES WHICH URGED THEIR DRIVERS TO KEEP OPERATING 9311120067 931112 BUSINESS BRIEF SURGICAL LASER TECHNOLOGIES INC ACCORD WITH UNIT OF NESTLE IS SET ON OPHTHALMIC LINES SURGICAL LASER TECHNOLOGIES INC HAS REACHED AN AGREEMENT WITH ALCON SURGICAL INC A UNIT OF NESTLE SA'S ALCON LABORATORIES TO DISTRIBUTE SURGICAL LASER'S COMPLETE LINE OF OPHTHALMIC PRODUCTS TERMS WERE NOT DISCLOSED THE COMPANY SAID THE AGREEMENT PROVIDES ALCON IMMEDIATE WORLDWIDE MARKETING AND DISTRIBUTION RIGHTS TO SURGICAL LASER'S CYCLOPHOTOCOAGULATION CONTACT LASER PROBE AND FIBERDELIVERY SYSTEM FOR GLAUCOMA NESTLE IS BASED IN SWITZERLAND SURGICAL LASER BASED IN OAKS PA SAID ITS PROPRIETARY FIBER AND CONTACT LASER TECHNOLOGY WILL DELIVER LASER ENERGY FROM ALCON'S NEW OPHTHALAS 532 A MULTIWAVELENGTH TUBELESS LASER FOR USE IN OPHTHALMIC APPLICATIONS 9311120066 931112 BUSINESS BRIEF DOLLAR TIME GROUP INC RETAILER AGREES TO ACQUIRE A REAL NEW YORK BARGAIN DOLLAR TIME GROUP INC HOLLYWOOD FLA SAID IT SIGNED A DEFINITIVE AGREEMENT TO BUY PRIVATELY HELD A REAL NEW YORK BARGAIN NEW YORK IN A TRANSACTION VALUED AT 436 MILLION IN THE AGREEMENT JOSEPH SASSON CHIEF EXECUTIVE OF A REAL NEW YORK BARGAIN AND JEFFREY KLANSKY PRESIDENT OF THE RETAILER WILL RECEIVE 12 MILLION DOLLAR TIME COMMON SHARES IN EXCHANGE FOR FULL OWNERSHIP OF THE NEW YORK COMPANY IN NASDAQ STOCK MARKET TRADING DOLLAR TIME'S SHARES CLOSED UP 1875 CENTS OR 57 AT 350 EACH AT THE END OF SEPTEMBER DOLLAR TIME HAD 142 MILLION SHARES OUTSTANDING MR SASSON WILL BECOME DOLLAR TIME CEO AND MR KLANSKY WILL BECOME DOLLAR TIME PRESIDENT MR SASSON ALSO WILL BE CHAIRMAN WILLIAM MCCONNELL DOLLAR TIME PRESIDENT AND A DIRECTOR RESIGNED THE COMPANY SAID THE COMBINED ENTITY WILL CONTINUE TO USE THE DOLLAR TIME GROUP AND A REAL NEW YORK BARGAIN NAMES AND WILL OPERATE 73 STORES IN 16 STATES 9311120065 931112 TECHNOLOGY BRIEF EASTMAN KODAK CO NEW PRODUCT LINE UPGRADES PHOTO CD SYSTEM CAPACITIES EASTMAN KODAK CO ROCHESTER NY GIVING A BOOST TO ITS PHOTO CD SYSTEM INTRODUCED SEVERAL PRODUCTS GEARED TO UPGRADE THE SYSTEM'S CAPABILITY AND COSTEFFICIENCY FOR CONSUMER FILM ORDERS SCHEDULED FOR MARKET INTRODUCTION EARLY NEXT YEAR IS KODAK'S AUTOMATED PCD IMAGING WORKSTATION 6600 WHICH CAN SCAN FILM ONTO PHOTO CD DISKS ALMOST THREE TIMES FASTER THAN BEFORE AND REQUIRES LESS MANPOWER FOR OPERATION PHOTO CD IS A TECHNOLOGY FOR STORING PHOTOS ON COMPACT DISKS SO THEY CAN BE VIEWED OR EDITED BY COMPUTER OR TELEVISION WHERE THE OLD WORKSTATION CAN SCAN BETWEEN 55 TO 70 IMAGES PER HOUR THE NEW ONE HAS A MUCH FASTER CD WRITER THAT CAN SCAN ALMOST 200 IMAGES PER HOUR ACCORDING TO SOME ESTIMATES ALSO THE NEW WORKSTATION CAN SCAN UP TO 50 ROLLS OF 35MM FILM AT A TIME ONTO INDIVIDUAL PHOTO CD DISKS WITHOUT INTERRUPTION COSTS WILL NOT BE AVAILABLE UNTIL THE FIRST QUARTER OF 1994 BUT KODAK SAID THE WHOLESALE PHOTOFINISHERS WITH A HIGH VOLUME OF PRODUCTION WILL BENEFIT MOST FROM THE NEW WORKSTATION 9311120064 931112 BUSINESS BRIEF TODAY'S MAN INC THIRDPERIOD SALES ROSE 31 BUT NET LOSS WAS WIDER MENSWEAR RETAILER TODAY'S MAN INC MOORESTOWN NJ REPORTED A THIRDQUARTER LOSS THAT WAS WIDER THAN A YEAR AGO'S ALTHOUGH SALES ROSE 31 THE COMPANY HAD A NET LOSS OF 265400 OR TWO CENTS A SHARE MORE THAN DOUBLE LAST YEAR'S LOSS OF 103300 OR ONE CENT A SHARE SALES ROSE TO 357 MILLION FROM 273 MILLION COMPARABLE STORE SALES ROSE 53 THE COMPANY SAID THIRDQUARTER RESULTS WERE SLIGHTLY BELOW EXPECTATIONS DUE TO A DIFFICULT APPAREL SALES ENVIRONMENT ON THE EAST COAST BUT IT SAID IT IS LOOKING FORWARD TO A STRONG FOURTHQUARTER HOLI DAY SELLING SEASON FOR THE NINE MONTHS NET INCOME ROSE 25 TO 17 MILLION OR 16 CENTS A SHARE FROM 13 MILLION OR 16 CENTS A SHARE WHEN THERE WERE FEWER SHARES OUTSTANDING 9311120063 931112 CHOOSY BUYERS GIVE NEW LIFE TO ART MARKET BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE ART MARKET IS CLIMBING AND CONSOLIDATING BUT THE NASCENT RALLY IS LEAVING BEHIND MANY ARTISTS MOVEMENTS AND GALLERIES A SERIES OF MULTIMILLIONDOLLAR AUCTIONS ENDED LATE YESTERDAY SHOWS THAT THE MARKET FOR PAINTINGS AND SCULPTURE IS THRIVING THOUGH AT LOWER PRICE LEVELS THAN FIVE YEARS AGO AMID THE HEIGHT OF THE 1980S ART BOOM FOLLOWING THAT BOOM WAS A CRIPPLING THREEYEAR RECESSION THAT SLASHED THE PRICES FOR IMPRESSIONIST PAINTINGS IN HALF DEPRESSED SOTHEBY'S HOLDINGS INC'S STOCK AND SHUTTERED MORE THAN 100 GALLERIES WORLDWIDE NOW THE CONFIDENCE IS BACK ECONOMIC INDICATORS ARE GOOD THE STOCK MARKET IS HIGH AND PEOPLE HAVE PLUNGED BACK INTO THE ART MARKET SAID NEW YORK PAINTING DEALER RICHARD FEIGEN IN FACT THESE FALL SALES EVEN SHOWED TRACES OF THE BIDDING FRENZY THAT MARKED THE 1980S BOOM THE HIGHEST PRICE FETCHED FOR ANY WORK IN THE KEENLY WATCHED TWO WEEKS WAS 139 MILLION FOR A SIMPLE VIBRANT CUTOUT THAT HENRI MATISSE DID LATE IN HIS LIFE THAT PRICE WAS ASTONISHING SAID MR FEIGEN GIVEN THAT A MUCH MORE DEVELOPED AND SUPERIOR MATISSE PAINTING SOLD FOR 145 MILLION JUST A YEAR AGO SO IS THE ARTMARKET PRICE JUGGERNAUT BACK NOT BY A LONG SHOT COLLECTORS ARE PLAYING TRIAGE WITH ARTISTS MOVEMENTS AND EVEN WITH DEALERS WITH LITTLE TOLERANCE FOR FADS DEMAND FOR RECENT CONTEMPORARY ART STILL SUBSTANTIALLY LAGS BEHIND THE MARKET'S RECOVERY WHILE THE WAVE OF GALLERY CLOSINGS IS OVER A WAVE OF MERGERS AND JOINT VENTURES IS JUST BEGINNING THE INDUSTRY IS EXPANDING AGGRESSIVELY INTERNATIONALLY AND THE TASTES OF ASIAN BUYERS ARE LIKELY TO CALL THE TUNE IN COMING YEARS FOR THE VAST MAJORITY OF WORKS SIGNIFICANT PRICE CHANGES AREN'T LIKELY AHEAD OVERALL AT NEW YORK'S BIG FALL AUCTIONS OF IMPRESSIONIST MODERN AND CONTEMPORARY ART SOTHEBY'S AND CHRISTIE'S INTERNATIONAL PLC TOGETHER RAISED 201 MILLION THAT'S ABOUT 25 MILLION MORE THAN THE FALL SALES RAISED LAST YEAR THIS YEAR FOUR OUT OF FIVE WORKS AT THE MAJOR EVENING SALES FOUND BUYERS UP FROM 60 TO 70 DURING THE WORST OF THE RECESSION EVEN MORE ENCOURAGING THERE WAS BIDDING FROM COLLECTORS AND DEALERS FROM VIRTUALLY EVERY CORNER OF THE WORLD PABLO PICASSO PERHAPS THE PREEMINENT BRAND NAME OF 20THCENTURY ART CARRIED THE DAY AT ONE SOTHEBY'S AUCTION EVERY ONE OF THE 88 WORKS ON THE BLOCK BY THE SPANISH MASTER WAS SOLD RAISING 32 MILLION IN THREE HOURS FLAT THE BUOYANT MOOD AND HIGHER VALUES ARE LIKELY TO TRICKLE FROM THE LEVEL OF MILLIONDOLLAR CAMILLE PISSARRO LANDSCAPES DOWN THROUGHOUT THE INDUSTRY TO JEWELRY PRINTS FURNITURE AND COLLECTIBLES A HANDFUL OF ART GALLERIES RAISED PRICES IMMEDIATELY AFTER THE AUCTIONS THE PRICE ON ONE ALEXANDER CALDER SCULPTURE BEING OFFERED PRIVATELY WAS MARKED UP 30 ON THE HEELS OF THIS WEEK'S BOFFO SALES RESULTS FOR THE ARTIST'S WORK THE NET RESULT GREAT WORKS ARE HOLDING THEIR VALUES AND MEDIOCRE WORKS HAVE BEEN RUTHLESSLY BEATEN DOWN IN PRICE BUT ARE GENERALLY SELLING IN THE 1980S BY CONTRAST THE RISING PRICE TIDE LIFTED FAMOUS ARTISTS' ROUTINE WORKS BY THE SAME PERCENTAGE AS RARE MUSEUMQUALITY PIECES UNTIL EVENTUALLY THE HOHUM STUFF WAS PRICED OUT OF REASONABLE RANGE CONSIDER A PIERRE BONNARD PAINTING THAT CAME ON THE MARKET IN MAY 1990 THE CATALOG SUGGESTED BIDS OF 12 MILLION TO 18 MILLION NO SALE IT WENT ON THE BLOCK AGAIN LAST WEEK AND BROUGHT 277500 NOT EVERYTHING IS 75 LOWER IN THE CASE OF THE PICASSO SALE EXPATRIATE AMERICAN COLLECTOR STANLEY J SEEGER ACQUIRED THE PIECES OVER 13 YEARS PAYING A TOTAL OF ABOUT 24 MILLION HIS PICASSO COLLECTION BROUGHT 8 MILLION MORE THAN THAT LAST WEEK OVERALL WHETHER THE MARKET IS UP OR DOWN DEPENDS UPON WHEN YOU START KEEPING TRACK CONSIDER A FISHSHAPED CALDER MOBILE WITH EACH OF THE FISH'S SCALES A SUSPENDED PIECE OF BROKEN GLASS OR PORCELAIN IT'S A SORT OF MOSAIC THAT CHANGES COLOR IN THE WIND IT SOLD FOR 400 IN 1942 AND SOLD AT AUCTION AGAIN SIX YEARS AGO FOR 187000 THIS WEEK IT FETCHED 376500 IN THE FRONT ROW AT SOTHEBY'S ON WEDNESDAY EVENING PROMINENT ART DEALER ANDRE EMMERICH CROUCHED IN FRONT OF A NERVOUS YOUNG COLLECTOR WHO MADE HIS MONEY IN RESIDENTIAL REAL ESTATE AS BIDDING FOR A 1946 CALDER MOBILE HEATED UP MR EMMERICH COAXED AND LATER CONGRATULATED THE BUYER AS THE ARTWORK WHICH WAS SUSPENDED ABOVE THE SALES ROOM LIKE A SLOWMOVING BAT CRACKED THE PRESALE PRICE ESTIMATE THE YOUNG COLLECTOR WON IT WITH A 170000 BID SELLERS WHO DEMANDED HEFTY MINIMUMS LOST OUT AS BIDS OFTEN STOPPED BEFORE THE MINIMUMS WERE REACHED PROMINENT SACRIFICES TO THE AUCTION BLOCK WERE A MAJOR PAINTING BY PIERRE AUGUSTE RENOIR AND AN ABSTRACT WORK BY CY TWOMBLY EVEN ARTISTS WHOSE MARKETS WERE STRONG DURING THE RECESSION STUMBLED A BIT FOR EXAMPLE A WORK BY MUSEUM FAVORITE BRUCE NAUMAN WHO MAKES ELABORATE NEON SCULPTURES DIDN'T ATTRACT BIDS MEETING THE PRESALE PRICE ESTIMATE OF 450000 THE PICASSOS SOLD WELL IN LARGE PART BECAUSE THEY WERE PRICED ATTRACTIVELY BIDDERS ENDED UP PAYING DOUBLE OR TRIPLE THE PRICE ESTIMATES FOR DRAWINGS IN SOME CASES BUT THEY WERE INDUCED INTO THE SALES ROOM WITH PROMISES OF BARGAINS HISTORICALLY IMPORTANT WORKS SOLD WELL THERE'S A DEEPER AND DEEPER GULF BETWEEN 19THCENTURY CLASSICS AND CONTEMPORARY ART SAYS NEW YORK DEALER JAN KRUGIER WE ARE IN THE LAST YEARS OF THIS CENTURY AND WE ARE DOING OUR SELECTION NOW OF WHAT'S IMPORTANT HOT WORKS INCLUDED PIECES IN WHICH PICASSO FIRST USED A PROFILE ON A FULL ROUND FACE WHERE MINIMALIST SCULPTOR DONALD JUDD FIRST DECIDED TO MAKE ART OUT OF A SHELF AND WHERE DAVID HOCKNEY WHOSE TRADEMARKS ARE CALIFORNIA SCENES AND POOLS FIRST PAINTED THE TWO THE GAP IN DEMAND AND PRICE FOR WORKS OF QUALITY OVER SOSO ART IS WIDENING EVERY DAY SAYS CHRISTIE'S MR JOFFRE OUT OF FASHION HOWEVER WERE JULES OLITSKI ROSS BLECKNER AND JENNIFER BARTLETT THE STEEP SLIDE IN FRANK STELLA PRICES HAS BOTTOMED OUT COLLECTORS ARE AWASH IN RENE MAGRITTES AND CONSPICUOUS BY THEIR NEARABSENCE FROM THE SALES ROSTER WERE THE WORKS OF ANDY WARHOL SIX MONTHS AGO 16 WARHOLS WENT ON THE AUCTION BLOCK IN A SINGLE SALE AND ONLY TWO FOUND BUYERS SO THE JURY IS STILL OUT ON THE POPART MASTER ONCEBURNEDTWICESHY SELLERS DIDN'T NEED THE MONEY THAT BADLY BURTON FREDERICKSEN SENIOR RESEARCH CURATOR OF THE J PAUL GETTY MUSEUM WHO IS WORKING ON A HISTORY OF ART COLLECTING AND DEALING SAYS NO ARTIST HAS MAINTAINED CONSISTENT VALUES OVER THE PAST 500 YEARS EXCEPT MAYBE RAPHAEL AND LEONARDO DA VINCI EVEN REMBRANDT HAD PRICE FADS IN FACT HE SAYS THE MOSTSOUGHT HOUSEHOLDNAME ARTISTS OF THE 19TH CENTURY WERE GEORGE MORLAND AND DAVID TENIERS THE YOUNGER 9311120062 931112 LEONARD STERN IS SUED BY FORMER HARTZ PARTNER NEW YORK A FORMER BUSINESS PARTNER OF PETSUPPLY AND REALESTATE MAGNATE LEONARD STERN ALLEGED THAT THE BILLIONAIRE USED SYSTEMATIC ACCOUNTING MANIPULATIONS TO DEFRAUD HIM OF AT LEAST 10 MILLION THE CHARGES WERE MADE IN A CIVIL LAWSUIT FILED TWO WEEKS AGO IN THE SUPERIOR COURT OF NEW JERSEY FOR HUDSON COUNTY THE ALLEGATIONS WERE FIRST REPORTED IN WEDNESDAY'S EDITION OF THE RECORD A BERGEN COUNTY NJ NEWSPAPER EUGENE HELLER WHO HELPED MR STERN LAUNCH A LUCRATIVE REALESTATE BUSINESS IN THE EARLY 1970S ORIGINALLY FILED CHARGES AGAINST MR STERN EARLY LAST YEAR BUT THE AMENDED COMPLAINT FILED TWO WEEKS AGO PROVIDED MUCH MORE DETAIL ABOUT THE ALLEGED MISDEALINGS AND THE VALUE OF THE REALESTATE HOLDINGS OF HARTZ MOUNTAIN INDUSTRIES INC A PRIVATELY HELD COMPANY BASED IN SECAUCUS NJ AND CONTROLLED BY MR STERN ACCORDING TO THE RECORD THE HARTZ GROUP HAS ANNUAL REVENUE OF ABOUT 900 MILLION THE LAWSUIT SEEKS TO RECOVER AT LEAST 10 MILLION IN PARTNERSHIP PAYMENTS AS WELL AS A TREBLED AMOUNT FOR DAMAGES IT ALSO ASKS FOR AN INDEPENDENT ACCOUNTING OF HIS PARTNERSHIP INTEREST MR STERN WHOSE NEW YORKBASED HARTZ GROUP INC CONTROLS HARTZ MOUNTAIN REFUTED THE ALLEGATIONS HE DECLINED TO PROVIDE INFORMATION ABOUT THE VALUE OF ANY OF HIS HOLDINGS 9311120061 931112 MARKETING BRIEF INTERNATIONAL FAMILY ENTERTAINMENT OWNER OF CABLE TV NETWORK SEES LOSS FOR QUARTER YEAR INTERNATIONAL FAMILY ENTERTAINMENT INC SAID IT EXPECTED TO POST A LOSS FOR THE FOURTH QUARTER AND THE YEAR AFTER A ONETIME CHARGE OF ABOUT 52 MILLION FOR RETIREMENT OF DEBT THE VIRGINIA BEACH VA COMPANY WHICH OWNS AND OPERATES THE FAMILY CHANNEL CABLE TELEVISION NETWORK SAID IT AGREED TO REPURCHASE ABOUT 556 MILLION PRINCIPAL AMOUNT OF 6 CONVERTIBLE NOTES HELD BY REGENT UNIVERSITY FOR 1075 MILLION THE REPURCHASE PRICE EQUALS AN EFFECTIVE PRICE OF 2150 A SHARE THE NOTES HAD BEEN CONVERTIBLE INTO FIVE MILLION OF INTERNATIONAL FAMILY'S CLASS B COMMON REGENT ALSO WOULD CONVERT ITS REMAINING 444 MILLION FACE AMOUNT OF 6 CONVERTIBLE NOTES INTO FOUR MILLION SHARES OF INTERNATIONAL FAMILY CLASS B STOCK THE TRANSACTIONS WILL REDUCE REGENT'S STAKE IN INTERNATIONAL FAMILY TO 103 FROM 205 ON A FULLY DILUTED BASIS LIBERTY PROGRAMMING CORP WILL HOLD THE REMAINING 23 MILLION OF INTERNATIONAL FAMILY'S 6 NOTES IT WILL REPLACE REGENT AS THE SINGLE LARGEST HOLDER OF CLASS B COMMON ON A FULLY DILUTED BASIS 9311120060 931112 BUSINESS BRIEF MILLIPORE CORP COMPANY IS PLANNING TO SELL ANALYTICAL INSTRUMENT UNIT MILLIPORE CORP BEDFORD MASS DISSATISFIED WITH ITS RECENT PERFORMANCE SAID IT PLANS TO SELL ONE OF ITS TWO MAJOR BUSINESSES ELIMINATING A LARGE CHUNK OF THE COMPANY'S 777 MILLION IN ANNUAL REVENUE MILLIPORE SAID IT INTENDS TO SELL ITS 300 MILLION WATERS CHROMOTOGRAPHY UNIT WHICH MAKES ANALYTICAL INSTRUMENTS THE COMPANY ALSO HAS A MAJOR BUSINESS THAT MAKES PURIFICATION AND FILTRATION DEVICES IT HAS RETAINED CS FIRST BOSTON TO ASSIST WITH THE SALE AFTER CONSIDERABLE EXTERNAL AND INTERNAL ANALYSIS WE CONCLUDED THAT OUR MAJOR BUSINESSES WOULD BE MORE SUCCESSFUL SEPARATELY THAN TOGETHER SAID JOHN GILMARTIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER ANALYSTS MENTIONED SEVERAL COMPANIES AS POSSIBLE BUYERS AMONG THOSE MENTIONED WERE HEWLETTPACKARD CO PALO ALTO CALIF THERMO ELECTRON CORP WALTHAM MASS AND PERKINELMER CORP NORWALK CONN CALLS TO THE COMPANIES MENTIONED WEREN'T IMMEDIATELY RETURNED THE COMPANY DECLINED TO ESTIMATE A PRICE FOR THE UNIT BUT IT EXPECTED TO REPORT A GAIN IF IT IS SOLD ANALYSTS ESTIMATED THE PRICE OF THE UNIT AT 300 MILLION 9311120059 931112 BUSINESS BRIEF QUADREX CORP PRIMARY BUSINESS TO CHANGE HEAVY QUARTERLY LOSS CITED QUADREX CORP GAINESVILLE FLA SAID IT WOULD CHANGE ITS PRIMARY LINE OF BUSINESS BECAUSE OF HEAVY LOSSES IN ITS THIRD QUARTER THE WASTEMANAGEMENT AND RECYCLING COMPANY REPORTED A NET LOSS OF 122 MILLION OR 95 CENTS A SHARE ON 11 MILLION IN REVENUE IN THE FIRST NINE MONTHS THE COMPANY HAD A LOSS OF 235 MILLION OR 191 A SHARE ON 296 MILLION IN REVENUE QUADREX SAID IT WOULD NOW BECOME AN ETHANOL PRODUCTION LICENSING AND TECHNOLOGY COMPANY QUADREX SAID IT IS SELLING ITS ENERGY SERVICES BUSINESS TO WILLIAM B DERRICKSON THE COMPANY'S FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER TERMS WEREN'T DISCLOSED IN ADDITION QUADREX SAID IT WILL PURCHASE AN ETHANOL PRODUCTION FACILITY AND PUT ALL OF ITS WASTE MANAGEMENT AND RECYCLING BUSINESSES UP FOR SALE QUADREX ELECTED NICK SINACORI 49 YEARS OLD A MANAGING PARTNER OF INTERNATIONAL CAPITAL PARTNERS INC A STAMFORD CONNBASED INVESTMENT FIRM TO ITS BOARD 9311120058 931112 INTERNATIONAL BRIEF KDD PARENT'S PRETAX PROFIT ROSE BY 21 IN FISCAL FIRST HALF KDD A MAJOR JAPANESE INTERNATIONAL TELECOMMUNICATIONS COMPANY SAID ITS PARENT PRETAX PROFIT DURING THE FISCAL FIRST HALF ENDED SEPT 30 INCREASED 21 FROM THE YEAREARLIER TERM THE PARENT'S PRETAX PROFIT ROSE TO 1607 BILLION YEN 150 MILLION FROM 1325 BILLION YEN SALES ROSE 35 TO 12447 BILLION YEN FROM 12026 BILLION YEN YESTERDAY'S RESULTS WERE IN LINE WITH THE OUTLOOK THE COMPANY ISSUED IN OCTOBER WHEN IT REVISED ITS EARNINGS FORECAST UPWARD AMID INCREASED DEMAND FOR INTERNATIONAL TELEPHONE SERVICE THIS FISCAL YEAR WOULD BE THE FIRST IN THREE YEARS THAT KDD POSTS GAINS IN BOTH SALES AND PROFITS SINCE DEREGULATION IN 1989 ENDED THE MONOPOLY THE COMPANY HAS BEEN FACING INTENSIVE DISCOUNTING BY NEWCOMERS WHO HAVE TAKEN 35 OF THE MARKET BUT AFTER CONSECUTIVE SHARP CUTS IN PRICES OVER THE PAST FOUR YEARS KDD HAS REGAINED ITS PRICE COMPETITIVENESS 9311120057 931112 BUSINESS BRIEF WM WRIGLEY JR CO COMPANY IS IN DISCUSSIONS ON BUILDING PLANT IN POLAND WM WRIGLEY JR CO SAID IT'S IN TALKS WITH POLISH OFFICIALS OVER THE POSSIBILITY OF BUILDING A CHEWINGGUM FACTORY IN POZNAN SHOULD THESE DISCUSSIONS PROVE FRUITFUL SAID THE CHICAGO MAKER OF JUICY FRUIT AND OTHER GUMS CONSTRUCTION OF THE FACILITY COULD BEGIN SOMETIME IN 1994 WRIGLEY SAID ITS PRODUCTS HAVE BEEN VERY WELL RECEIVED IN THE POLISH MARKET AND THROUGHOUT ALL OF CENTRAL EUROPE AND NOTED THAT IT ESTABLISHED SUBSIDIARIES TO MARKET ITS PRODUCTS IN HUNGARY IN 1991 AND IN POLAND THE CZECH REPUBLIC AND SLOVENIA IN 1992 WRIGLEY'S DISCLOSURE CAME IN THE FORM OF A CONFIRMATION OF A UNITED PRESS INTERNATIONAL REPORT FROM WARSAW THIS WEEK 9311120056 931112 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER FINAL FRENZY BOTH SIDES STEP UP TRADEPACT PRESSURES FOR NEXT WEEK'S VOTE CLINTON WILL BE UNRELENTING IN PHONING UNDECIDED HOUSE MEMBERS THIS WEEKEND TO PUSH THE NORTH AMERICAN FREE TRADE AGREEMENT HIS AIDES SAY THE PRESIDENT PLANS A WHITE HOUSE DINNER SUNDAY NIGHT FOR ABOUT TWO DOZEN UNDECIDED MEMBERS CLINTON OFFICIALS PLAN DAILY ANNOUNCEMENTS NAMING LAWMAKERS WHO DECIDE TO BACK THE PACT BY MONDAY NIGHT THEY EXPECT 210 VOTES SHORT OF THE NEEDED 218 BUT WITHIN STRIKING DISTANCE PEROT PLANS AN ANTINAFTA RALLY IN SEATTLE SUNDAY OTHER NAFTA FOES SET UP PHONE BANKS TO URGE VOTERS TO PEPPER UNDECIDED HOUSE MEMBERS WITH CALLS ANTINAFTA FORCES SAY THEY WANT TO GO INTO WEDNESDAY'S VOTE WITH AT LEAST 225 VOTES THE POLITICALLY SENSITIVE HOUSE VOTE ON NAFTA IS STRATEGICALLY SCHEDULED TO TAKE PLACE AFTER THE EVENING TVNEWS SHOWS TRADE WORRIES WILL FOLLOW CLINTON TO NEXT WEEK'S ASIA ECONOMIC SUMMIT SINGAPORE'S AMBASSADOR TO THE US WARNS THAT A NAFTA DEFEAT ON THE EVE OF CLINTON'S MEETING WITH ASIANS IN SEATTLE WOULD SIGNAL THAT US PROTECTIONISM IS ON THE RISE OTHER ASIANS WORRY THAT A NAFTA WIN WOULD LEAD THE US TO FOCUS MORE ON NEIGHBORING NATIONS US HUMANRIGHTS ACTIVISTS FRET THAT CLINTON'S SCHEDULED PRIVATE MEETING WITH CHINA'S PRESIDENT MEANS A REVERSAL OF HIS TOUGH CAMPAIGN RHETORIC CLINTON WILL TRY TO USE THE MEETING TO SHOW AMERICANS THE GROWING ECONOMIC IMPORTANCE OF ASIA TO THE US OFFICIALS NOTE THAT USPACIFIC TRADE IS NOW 50 GREATER THAN TRADE ACROSS THE ATLANTIC THE PRESIDENT WILL ARGUE THAT THIS TRADE JUSTIFIES A CONTINUING US SECURITY PRESENCE IN THE REGION CLINTON'S HEALTH PLAN MAY FACE A POWERFUL NEW COMPROMISE ALTERNATIVE GOP SEN CHAFEE AND DEMOCRATIC REP COOPER SPONSORS OF THE TWO LEADING RIVAL PROPOSALS TO CLINTON'S HEALTHCARE BILL QUIETLY WORK TO BRIDGE THEIR DIFFERENCES THEY TAKE A LEAD ROLE WITH A GROUP OF 15 TO 20 MODERATE REPUBLICANS AND CONSERVATIVE DEMOCRATS WHO HAVE BEEN MEETING EVERY WEDNESDAY THE GOAL A REFORM BILL THAT WOULD GAIN SUPPORT OF THE BROAD MIDDLE THE LAWMAKERS HAVEN'T DISCUSSED THEIR EFFORTS WITH THE WHITE HOUSE AND ARE UNLIKELY TO FINISH A NEW BILL BEFORE NEXT YEAR AMONG THE ISSUES TO BE RESOLVED UNIVERSAL COVERAGE CHAFEE'S PLAN HAS IT COOPER'S DOESN'T A CHAFEECOOPER COMPROMISE COULD PUSH LIBERAL BACKERS OF A SINGLEPAYER HEALTH PLAN TOWARD THE CLINTON PROPOSAL CLINTON JOGS WITH COOPER THE MORNING AFTER HILLARY RODHAM CLINTON PUBLICLY BLASTS THE LAWMAKER'S HEALTH BILL THE REASON TO LOBBY COOPER ON NAFTA TOBACCO DEAL IN RETURN FOR NAFTA VOTES SOME TOBACCOSTATE LAWMAKERS WANT CLINTON TO SHARPLY REDUCE THE 75CENTSAPACK TAX BOOST FOR CIGARETTES IN HIS HEALTHCARE PLAN THE WHITE HOUSE AND HOUSE WAYS AND MEANS CHAIRMAN ROSTENKOWSKI WHO MET WITH THE LAWMAKERS DENY ANY DEAL BUT NORTH CAROLINA REP NEAL SAYS IF THEY'RE LOOKING FOR SIX TO 10 VOTES THIS IS ONE POSSIBILITY AIR WARS USANAFTA A PRONAFTA GROUP RUNS A TV AD ASKING WHO DO YOU TRUST IT SHOWS A PRONAFTA GROUP OF FORMER US PRESIDENTS NOBEL PRIZE WINNERS COLIN POWELL AND LEE IACOCCA AGAINST PATRICK BUCHANAN ROSS PEROT JESSE JACKSON AND JERRY BROWN ANTINAFTA RALPH NADER AND ASSOCIATES PLAN 10 RADIO TALK SHOWS A DAY CHILLY TO CHILE AS URGED BY ASIA HAND WINSTON LORD SECRETARY OF STATE CHRISTOPHER RESISTS CHILE'S PLEABACKED BY TREASURY'S BENTSEN AND TRADE REPRESENTATIVE KANTORFOR US SUPPORT TO JOIN THE ASIA PACIFIC ECONOMIC COOPERATION SOME ASIAN NATIONS OPPOSE CHILE'S ENTRY AND LORD DOESN'T WANT TO MAKE WAVES BEFORE NEXT WEEK'S SUMMIT ANOTHER DISASTER IN SOMALIA IS FEARED BY US MILITARY OFFICIALS WHO WORRY THAT THE SOMALIA MISSION WILL DISINTEGRATE EARLY NEXT YEAR AS IT BECOMES CLEAR THE UN CAN'T TAKE OVER FOR THE US SOME SEE A SAIGON SCENARIO WITH TROOPS FROM ALL NATIONS HEADING FOR THE EXITS AT ONCE CONCERN RISES THAT SLOW US EXPORT GROWTH WILL HURT ECONOMIC RECOVERY MOST ECONOMIC INDICATORS POINT UP AND PRIVATE FORECASTS FOR THE CURRENT QUARTER GROW ROSIER BUT EXPORT GROWTH WHICH SUSTAINED THE US IN RECENT YEARS PROBABLY WON'T IMPROVE MUCH NEXT YEAR THAT WOULD CONTINUE TO RESTRAIN HIRING BY MANUFACTURERS WITH THE US ECONOMY DOING BETTER THAN THOSE OF ITS TRADING PARTNERS SOME SEE A WIDER TRADE DEFICIT NEXT YEAR DELAYED RECOVERIES IN JAPAN AND GERMANY LEAD BOSTON ECONOMIST BRIAN HORRIGAN TO MARK DOWN HIS EXPORT FORECASTS US TREASURY OFFICIALS WORRY ABOUT JAPAN'S RELUCTANCE TO ADEQUATELY STIMULATE ITS ECONOMY THEY ARE DISTRESSED BY REPORTS THAT JAPAN'S FINANCE MINISTRY WANTS AN INCOMETAX CUT TO BE FOLLOWED JUST A YEAR LATER BY A BIGGER INCREASE IN THE NATIONAL SALES TAX WITH US FIRMS INCREASINGLY COMPETITIVE EVEN A MILD RECOVERY ABROAD COULD REIGNITE AN EXPORT BOOM BY 1995 SAYS MORGAN GUARANTY'S ROBERT MELLMAN MINOR MEMOS CLINTON PLANS AT LEAST ONE CELEBRATION THE DAY OF THE HOUSE VOTE ON NAFTA HE IS THROWING A 50TH WEDDING ANNIVERSARY PARTY WEDNESDAY FOR TREASURY'S BENTSEN A BUMPER STICKER SEEN IN WASHINGTON SAYS WONK IF YOU LOVE POLICY GOP MEDIA CONSULTANT BOB GOODMAN SAYS WALKINGAROUND MONEY TO KEEP VOTERS AWAY FROM THE POLLS IS A MISNOMER IT SHOULD BE CALLED SITTINGAROUND MONEY 9311120055 931112 BUSINESS BRIEF WR GRACE & CO FOODPACKAGING OPERATION IN RUSSIA BEGINS PRODUCTION WR GRACE & CO SAID A FOODPACKAGING JOINT VENTURE IT FORMED IN RUSSIA EARLIER THIS YEAR HAS BEEN LICENSED AND STARTED PRODUCTION AND ADDED THAT THE VENTURE'S FIRST CUSTOMER FOR FRESHMEAT WRAPPINGS WILL BE THE MOSCOW OPERATIONS OF MCDONALD'S CORP IN MARCH GRACE SAID IT WAS JOINING A UNIT OF A/O KAUSTIK IN A VENTURE THAT WOULD MAKE PACKAGING MATERIALS FOR PERISHABLE FOODS KAUSTIK A FORMER STATEOWNED CHEMICAL AND INDUSTRIAL CONCERN BASED IN VOLGOGRAD WAS PRIVATIZED LATE LAST YEAR AT THE TIME GRACE SAID THAT THE PERISHABLE FOOD INDUSTRIES OF RUSSIA ARE DRAMATICALLY SHORT OF VACUUM PACKAGING MATERIALS SUCH SHRINKWRAP IS USED TO EXTEND SHELF LIFE OF PERISHABLES AND TO PROTECT THEM DURING TRANSPORT IN ADDITION TO FINANCIAL SUPPORT SAID A SPOKESMAN FOR THE BOCA RATON FLA SPECIALTYCHEMICAL AND HEALTHCARE CONCERN GRACE CONTRIBUTED TECHNOLOGY AND ADVANCED MATERIALS TO THE KAUSTIK VENTURE IN WHICH IT HOLDS A MAJORITY STAKE 9311120053 931112 INTERNATIONAL BRIEF ROYAL DUTCH/SHELL GROUP CURRENTCOST NET INCOME INCREASED 8 IN 3RD PERIOD ROYAL DUTCH/SHELL GROUP ANNOUNCED AN 8 RISE IN ITS THIRDQUARTER CURRENTCOST NET INCOME AS EXCHANGERATE GAINS AT ITS OIL AND GAS OPERATIONS WERE PARTLY OFFSET BY INCREASED LOSSES AT ITS CHEMICAL DIVISION SHELL SAID LOSSES AT ITS CHEMICAL DIVISION QUADRUPLED TO 168 MILLION IN THE THIRD QUARTER FROM 41 MILLION A YEAR EARLIER THE LOSS INCLUDED SPECIAL CHARGES OF 171 MILLION AGAINST 9 MILLION A YEAR EARLIER OF THIS 127 MILLION STEMMED FROM PROVISIONS FOR POSSIBLE ENVIRONMENTAL CLAIMS AGAINST THE COMPANY IN THE US THE REMAINDER AROSE FROM RESTRUCTURING CHARGES OUTSIDE THE US 9311120052 931112 WHAT'S NEWS BUSINESS AND FINANCE BELLSOUTH AGREED TO INVEST 15 BILLION IN QVC JOINING THE BATTLE AGAINST VIACOM TO ACQUIRE PARAMOUNT LIBERTY MEDIA WILL DIVEST ITSELF OF ITS INTEREST IN QVC WITH BELLSOUTH ASSUMING PART OF LIBERTY'S FINANCIAL BACKING FOR QVC'S BID LIBERTY CAUSED ANTITRUST PROBLEMS FOR QVC BECAUSE OF ITS TIES TO TELECOMMUNICATIONS TELECOMMUNICATIONS IS SEEKING TO LINK UP WITH ANOTHER MOVIE STUDIO THE CABLETV GIANT HAS APPROACHED THE PARENTS OF UNIVERSAL STUDIOS 20TH CENTURY FOX AND COLUMBIA PICTURES MUNICIPALBOND RULEMAKERS PROPOSED A STRICTERTHANEXPECTED RULE ON POLITICAL GIFTS DEALERS MAKING CONTRIBUTIONS TO POLITICIANS WOULD BE BARRED FOR TWO YEARS FROM DOING BUSINESS WITH CITIES AND STATES THE POLITICIANS SERVE DREYFUS SAID IT HAS HELD BUT TERMINATED TALKS WITH A POSSIBLE MERGER PARTNER BELIEVED TO BE MELLON BANK IN THE LATEST SIGN OF BANKS' PUSH TO GET INTO THE MUTUALFUND BUSINESS A TAKEOVER OF THE GIANT MUTUALFUND COMPANY COULD COST 2 BILLION OR MORE PRUDENTIAL INSURANCE AND ITS SECURITIES UNIT COULD BE FORCED TO RESCIND THOUSANDS OF TRADES AND PAY BACK CUSTOMERS BECAUSE SOME AGENTS SOLD INVESTMENTS WITHOUT PROPER LICENSES DISNEY OUTLINED PLANS FOR ITS THIRD US THEME PARK COMPLEX THE PARK IN VIRGINIA 30 MILES FROM WASHINGTON WILL HAVE AN AMERICAN HISTORY THEME BOEING SAID MIDEAST CARRIER GULF AIR ORDERED SIX ADVANCED TWINENGINE 777 AIRCRAFT VALUED AT UP TO 840 MILLION WITH OPTIONS TO BUY SIX MORE DONALD TRUMP IS CLOSE TO AGREEMENTS WITH HIS BANKERS AND BONDHOLDERS THAT MAY ALLOW HIM TO RECAPTURE FULL OWNERSHIP OF HIS CASINOS IF HIS PLAN IS SUCCESSFUL TRUMP COULD TAKE HIS GAMBLING EMPIRE PUBLIC AND RETIRE ABOUT 200 MILLION IN PERSONAL DEBT LEFT OVER FROM HIS 1991 BAILOUT COMPANIES ARE INCREASING THE USE OF STOCKBASED PAY FOR CEOS AND THOSE EXECUTIVES ARE MAKING THEMSELVES AND SHAREHOLDERS RICHER A STUDY OF THE 1000 BIGGEST CORPORATIONS SHOWS IBM IS CONSIDERING SELLING ITS FEDERAL DEFENSE UNIT AS PART OF AN EMERGING STRATEGY TO SHED OPERATIONS THAT AREN'T RELATED TO ITS MAIN BUSINESSES APPLE PLANS TO UNVEIL A MACINTOSH PERSONAL COMPUTER THAT CAN OPERATE MICROSOFT'S WINDOWS PROGRAM PRICE WATERHOUSE AGREED TO DOUBLE THE FINANCIAL CONCESSION THE ACCOUNTING FIRM HAD MADE IN A CONTRACT DISPUTE THE THRIFT CLEANUP AGENCY SAID MOTOROLA ACQUIRED LEXICUS A SMALL CLOSELY HELD DEVELOPER OF HANDWRITINGRECOGNITION SOFTWARE IN A MOVE TO GAIN A STRONGER POSITION IN THE MARKET FOR PENBASED NOTEBOOK COMPUTERS MEXICAN STOCKS CLIMBED 1 TO A SECOND STRAIGHT RECORD FUELED BY CONTINUING OPTIMISM ABOUT PROSPECTS FOR THE NORTH AMERICAN FREE TRADE PACT A GROUP OF MEDICAL CARE AMERICA SHAREHOLDERS LED BY THE BASS FAMILY ASKED TO MEET WITH THE FIRM'S CEO OVER MEDICAL CARE'S REJECTION OF SURGICAL CARE AFFILIATES' 1 BILLION BUYOUT BID STRATUS COMPUTER IS EXPECTED TO NAME ITS CHIEF FINANCIAL OFFICER PRESIDENT AND CHIEF OPERATING OFFICER GM SAID IT WILL GIVE EACH OF ITS 65000 SALARIED WORKERS A 1600 PAYMENT NEXT YEAR IN AN EFFORT TO MEND ITS RELATIONSHIP WITH WHITECOLLAR EMPLOYEES GM WILL ALSO SET ASIDE A FUND EQUAL TO 5 OF ITS SALARIEDWORKER PAYROLL TO PAY FOR BASEPAY AND MERITPAY RAISES BONDS MARKET CLOSED COMMODITIES OIL 1690 A BARREL UP 35 CENTS DOW JONES FUTURES INDEX 13413 OFF 038 SPOT INDEX 12175 UP 009 DOLLAR 10636 YEN OFF 079 16930 MARKS UP 00045 9311120051 931112 WORLD MARKETS MEXICAN STOCKS SOAR TO SECOND HIGH IN A ROW ON OPTIMISM ABOUT PROSPECTS FOR TRADE PACT A WALL STREET JOURNAL NEWS ROUNDUP MEXICAN STOCKS SOARED TO A SECOND CONSECUTIVE RECORD CLOSE FUELED BY CONTINUING OPTIMISM ABOUT PROSPECTS FOR THE NORTH AMERICAN FREE TRADE AGREEMENT TOKYO SHARES ENDED MOSTLY HIGHER THURSDAY DESPITE SELLING BY ARBITRAGERS LONDON EQUITIES LOST EARLY GAINS AND FINISHED SLIGHTLY HIGHER TO MIXED WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11074 UP 023 REFLECTING HIGHER ASIA/PACIFIC MARKETS AND LOWER AMERICAN AND EUROPEAN MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 17349 UP 487 OR 29 WITH DUNLOP OF MALAYSIA POSTING A 55 GAIN IN ITS LOCAL CURRENCY OILFIELD EQUIPMENT STOCKS TRAILED AT 10638 DOWN 146 OR 14 WITH AKER OF NORWAY SLIDING 22 IN LOCAL CURRENCY THE MEXICAN BOLSA'S BELLWETHER IPC INDEX ROSE 2102 POINTS OR 1 TO A RECORD 205635 IN HECTIC VOLATILE TRADING IT WAS THE IPC'S THIRD STRAIGHT GAIN THE MARKET OPENED WITH A POWERFUL WAVE OF BUYING ON NAFTA OPTIMISM BUT GAINS WERE CLIPPED BY PROFITTAKING THE VOLATILITY IS HUGE SAID PABLO MANCERA TREASURER OF GRUPO SANTANDER MEXICO AND MANAGER OF THE NEW YORK STOCK EXCHANGELISTED EMERGING MEXICO FUND I BELIEVE THAT NAFTA WILL BE APPROVED AND THAT THE MARKET SHOULD RISE A LOT BUT THIS IS NOT SOUND IT'S SCARY IN LOCAL CURRENCY TERMS THE MEXICAN STOCK MARKET AS MEASURED BY THE IPC IS UP 169 THIS YEAR YESTERDAY USTRADED AMERICAN DEPOSITARY SHARES CONTINUED THEIR GAINS TELEFONOS DE MEXICO ADDED 1 1/4 TO 53 5/8 THE TRUCK MAKER GRUPO DINA ROSE 5/8 TO 21 1/2 AND THE CONSTRUCTION FIRM EMPRESAS ICA ROSE 3/8 TO 19 FELIX BONI BRANDANI HEAD OF RESEARCH AT THE MEXICAN BROKERAGE HOUSE INTERACCIONES SAID THE MARKET APPEARED EXTREMELY SPECULATIVE AND RISKY HE EXPRESSED FEAR THAT YESTERDAY'S GAINS COULD BE HOT MONEY THAT WOULD ROCKET OUT OF THE MARKET IF NAFTA'S APPROVAL STARTED TO LOOK DOUBTFUL HE SAID WE COULD HAVE A HIGH DEGREE OF INSTABILITY NEXT WEEK WHEN THE US CONGRESS IS TO VOTE THE THE TRADE PACT WITH MEXICO AND CANADA IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SLIPPED 400 POINTS WEDNESDAY ROSE 3681 TO 1815852 IN TRADING FRIDAY IN TOKYO THE NIKKEI ROSE 16211 POINTS TO CLOSE THE MORNING SESSION AT 1832063 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 300 MILLION SHARES DOWN FROM 3863 MILLION SHARES A DAY EARLIER GAINERS OUTNUMBERED LOSERS 503474 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 998 POINTS WEDNESDAY EDGED DOWN 020 TO 153458 THE MARKET'S SENTIMENT BRIGHTENED PARTLY BECAUSE OF GAINS FOR THE SECOND CONSECUTIVE DAY IN EAST JAPAN RAILWAY WHICH HAD FLOPPED AS A MARKET STIMULUS WHEN THE ISSUE BEGAN TRADING RECENTLY IN THE BROADER ARENA BUYERS INCLUDED CORPORATE INVESTORS AND PUBLIC PENSION FUNDS WHICH HAVE SUPPORTED THE MARKET IN RECENT MONTHS BUT HAVE BEEN INACTIVE LATELY PRESSURE EASED FROM RECENT UNLOADING OF ISSUES WITH HEAVY MARGIN BALANCES THOSE BOUGHT ON CREDIT BARGAIN HUNTING BY FINANCIAL INSTITUTIONS PUSHED PRICES OF SOME LARGECAPITALIZATION STOCKS BACK UP IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX WHICH JUMPED 13 POINTS AT THE OPENING BELL CLOSED WITH A 12POINT RISE AT 30997 THE FT 30STOCK INDEX SLIPPED 21 POINTS TO 23406 VOLUME WAS 7438 MILLION SHARES COMPARED WITH 7781 MILLION SHARES A DAY EARLIER SELLING PRESSURE SURFACED LATE IN THE DAY TRADING WAS SUBDUED PARTLY BECAUSE OF SOME EUROPEAN HOLIDAY OBSERVANCES AND THE COMING END OF LONDON'S TRADING ACCOUNT TODAY DEALINGS WERE LED BY THE FUTURES PIT IN FRANKFURT SHARES CLOSED MIXED FOR THE SECOND DAY IN A ROW AS HOLIDAYS IN OTHER MARKETS TAMED ACTIVITY THE DAX 30STOCK INDEX SLIPPED 051 POINT TO 202333 MOST OF THE TRADING WAS DONE BY PROFESSIONALS WHO BEGAN COVERING SHORT POSITIONS BUILT UP A DAY EARLIER A SHORT SALE THE SELLING OF BORROWED STOCK IS A BET ON A MARKET DECLINE TO ALLOW REPLACEMENT OF THE BORROWED POSITION AT A LOWER PRICE TO SNAG A PROFIT IN AMSTERDAM STOCKS DROPPED BROADLY AS PROFITTAKERS MOVED IN FOLLOWING A DISAPPOINTING CORPORATE EARNINGS REPORT IN MILAN SHARE PRICES ROSE AFTER FOREIGN OPERATORS EXPRESSED CONFIDENCE IN ITALIAN TELECOMMUNICATIONS STOCKS WHICH DIVED THIS WEEK ON REPORTS OF A POTENTIAL LONGDISTANCE DEAL INVOLVING FOREIGN COMPANIES ITALIAN TELECOMMUNICATIONS CONCERNS ARE TO BE PRIVATIZED LATE NEXT YEAR IN STOCKHOLM SHARES REGAINED MOST OF THE PREVIOUS DAY'S LOSSES RISING SHARPLY ON A MORE FAVORABLE US ECONOMIC OUTLOOK THAT EASED ANXIETY ABOUT US FUNDS DRAINING FROM EUROPEAN MARKETS IN ZURICH PROFITTAKING ERASED A HIGHER OPENING THAT STEMMED FROM FUTURESLED ACTIVITY AND PRICES WERE DOWN AT THE CLOSE IN HONG KONG STOCK PRICES CLIMBED FOR THE SECOND DAY IN A ROW SURGING 37 TO NEW HIGHS ON A RALLY OF SPOT FUTURES CONTRACTS THOUGH LATE PROFITTAKING NUDGED THE MARKET DOWN FROM HIGHS THE TWODAY BULL RUN FOR A TOTAL GAIN OF 65 FOLLOWED A WEEKLONG CORRECTION THE BUYING SPURT WAS ATTRIBUTED TO A RETURN OF OVERSEAS BUYING AMID FAVORABLE POLITICAL EXPECTATIONS FOR HONG KONG AND CHINA PROPERTY STOCKS GAINED THE MOST WITH RISES OF 46 FOLLOWED BY UTILITIES UP 42 COMMERCIAL AND INDUSTRIAL ISSUES LEAPED 36 AND BANKS WERE AHEAD 26 IN SYDNEY SHARES ROSE BREAKING A SEVENSESSION RUN OF LOWER PRICES AS BARGAIN HUNTERS FINALLY MOVED IN IN SINGAPORE STOCKS FINISHED SHARPLY HIGHER BUOYED BY BUYING OF INDEXLINKED ISSUES IN TAIPEI STOCKS ADVANCED 19 IN ACTIVE DEALINGS ENCOURAGED BY THE TAIWAN GOVERNMENT'S LOOSENING OF RESTRICTIONS ON FOREIGN INSTITUTIONAL INVESTORS UNDER RULES THAT TOOK EFFECT THURSDAY FOREIGN INSTITUTIONS THAT HAVE TRANSFERRED FUNDS OUT OF TAIWAN MAY RETURN THE MONEY WITHIN THREE MONTHS WITHOUT REAPPLYING FOR GOVERNMENT APPROVAL THE EASING IS EXPECTED TO BOOST THE TAIPEI MARKET WHERE US AND OTHER FOREIGN INSTITUTIONS HAVE INCREASED THEIR INVESTMENTS IN SEOUL PRICES ROSE ON ACTIVE BUYING BY INSTITUTIONAL INVESTORS IN WELLINGTON STOCKS REBOUNDED FROM LOWS BUT STILL FINISHED SLIGHTLY LOWER AS THE MARKET STRUGGLED TO SHAKE OFF CONTINUING RUMORS ABOUT EFFECTS OF A HUNG PARLIAMENT FOLLOWING LAST WEEKEND'S ELECTION IN BANGKOK SHARES CLIMBED 2364 POINTS OR 18 ON THE SET INDEX LIFTING IT TO A NEW HIGH OF 137126 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 9311120050 931112 DREYFUS HOLDS AND TERMINATES MERGER TALKS MUTUALFUND GIANT MEETS WITH FINANCIAL FIRM BELIEVED TO BE MELLON BY SARA CALIAN AND GABRIELLA STERN STAFF REPORTERS OF THE WALL STREET JOURNAL IN THE LATEST SIGN OF BANKS' PUSH TO GET INTO THE MUTUALFUND BUSINESS DREYFUS CORP SAID IT HAS HELD BUT TERMINATED TALKS WITH A POSSIBLE MERGER PARTNER UNDERSTOOD TO BE MELLON BANK CORP PITTSBURGH A TAKEOVER OF DREYFUS MIGHT BE VALUED AT 2 BILLION OR MORE THE MUTUALFUND GIANT'S CURRENT STOCKMARKET VALUE IS ABOUT 15 BILLION SOME ON WALL STREET ARE BETTING THAT OTHER BIDDERS MIGHT EMERGE DREYFUS STOCK TRADES AT A DISCOUNT TO OTHER MAJOR MUTUALFUND COMPANIES CHAIRMAN HOWARD STEIN IS 67 YEARS OLD AND DREYFUS THE NATION'S SIXTHLARGEST MUTUALFUND COMPANY WITH 81 BILLION UNDER MANAGEMENT HAS MISSED OUT ON MUCH OF THE EXPLOSIVE BOOM IN STOCK FUNDS BY FAILING TO PUSH HEAVILY INTO THIS AREA DREYFUS'S TERSE DISCLOSURE WAS PROMPTED BY A SURGE OF MORE THAN 450 A SHARE IN ITS STOCK PRICE YESTERDAY AFTER TRADING WAS HALTED DREYFUS ANNOUNCED THAT IT HELD AND TERMINATED PRELIMINARY DISCUSSIONS ABOUT A MERGER WITH A FINANCIAL INSTITUTION DREYFUS ENDED THE DAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING UP 43 OR 175 AT 42625 THE NEGOTIATIONS BETWEEN MELLON AND DREYFUS WHICH HAD CONTINUED FOR A FEW MONTHS BROKE OFF ONLY WEDNESDAY NIGHT ACCORDING TO PEOPLE FAMILIAR WITH THE TALKS THE ISSUE WASN'T THE PRICE OF THE DEAL THEY SAID BUT RATHER CONCERN AMONG SOME DREYFUS EXECUTIVES BELOW MR STEIN THAT MELLON WOULD MOVE AGGRESSIVELY TO CUT PAY AND OTHER COSTS IN AN EFFORT TO BOOST THE COMPANY'S PERFORMANCE DREYFUS WOULDN'T IDENTIFY THE FINANCIAL INSTITUTION AND MELLON WOULDN'T COMMENT AMONG MUTUALFUND INDUSTRY VETERANS THE BETTING IS THAT MR STEIN A RENOWNED BEAR WOULD RELISH THE PROSPECT OF SELLING HIS COMPANY IN TODAY'S HEATED STOCK MARKET PEOPLE ON WALL STREET SAID THAT LAZARD FRERES & CO HAS BEEN WORKING WITH DREYFUS TO HELP THE COMPANY EXPLORE ITS ALTERNATIVES A BANK ACQUISITION OF A MUTUALFUND COMPANY COULD FACE SOME REGULATORY HURDLES AS BANKS AREN'T ALLOWED TO SELL FUNDS THAT THEY MANAGE BUT MELLON ALREADY HAS TAKEN ONE BIG STEP INTO THE FUND ARENA THIS YEAR BY ACQUIRING BOSTON CO WHICH PROVIDES ADMINISTRATIVE SERVICES TO MUTUAL FUNDS FOR 15 BILLION EARLIER THIS WEEK MELLON CHAIRMAN FRANK CAHOUET SAID WE SEE THE MUTUALFUND BUSINESS AS A GROWTH INDUSTRY BUT MELLON'S ACQUISITION OF BOSTON CO HAS BEEN MARRED BY A LEGAL DISPUTE BETWEEN MELLON AND PRIMERICA CORP OVER THE RIGHTS TO MUTUAL FUNDS THAT BOSTON CO ADMINISTERS FOR SMITH BARNEY SHEARSON INC A PRIMERICA SUBSIDIARY INDEED MR CAHOUET MADE HIS REMARKS ON THE WITNESS STAND IN THAT CASE ON MONDAY BANKS SEE MUTUAL FUNDS AS A WAY OF RETAINING SOME OF THE MONEY THAT YIELDSTARVED INVESTORS HAVE BEEN YANKING OUT OF CERTIFICATES OF DEPOSIT AND OTHER SAVINGS ACCOUNTS IN RECENT YEARS THE BANKS HAVE BEEN GRABBING AN INCREASING SHARE OF MUTUALFUND SALES ONLY LAST MONTH FIRST UNION CORP OF CHARLOTTE NC SAID IT HAD AGREED TO ACQUIRE LIEBER & CO MANAGER OF THE EVERGREEN FUNDS FOR SOME 128 MILLION IN STOCK DREYFUS HAS AN ADDED ALLURE THAT WOULD REDUCE THE OUTOFPOCKET COST TO AN ACQUIRER THE NEW YORKBASED FUND COMPANY IS SITTING ON SOME 750 MILLION IN CASH AND SECURITIES DREYFUS WAS THE FUND INDUSTRY'S PREEMINENT STOCKFUND MANAGER IN THE 1960S THANKS TO GOOD PERFORMANCE AND A STRONG ADVERTISING CAMPAIGN FEATURING THE DREYFUS LION BUT IN RECENT YEARS THE COMPANY HAS BEEN CRITICIZED FOR EMPHASIZING ITS MONEYMARKET AND MUNICIPALBOND FUNDS ALLOWING ITS STOCK FUNDS TO LANGUISH THERE'S NO QUESTION THAT DREYFUS HAS BEEN LOSING MARKET SHARE SAYS LOUIS HARVEY PRESIDENT OF DALBAR FINANCIAL SERVICES A BOSTON FUNDRESEARCH FIRM BUT THAT SHOULDN'T DIMINISH THE FACT THAT THEY'VE HAD A VERY IMPRESSIVE HISTORY OF ASSET GROWTH ANALYSTS NOTED THAT DREYFUS TRADES AT A LOWER MULTIPLE OF EARNINGS THAN OTHER MAJOR PUBLICLY TRADED FUND COMPANIES BECAUSE OF ITS SLOWER GROWTH BEFORE YESTERDAY THE STOCK WAS TRADING AT AROUND 15 TIMES MORGAN STANLEY ANALYST MICHAEL BLUMSTEIN'S EARNINGS ESTIMATE OF 270 A SHARE FOR THIS YEAR T ROWE PRICE ASSOCIATES TRADES AT ABOUT 20 TIMES MR BLUMSTEIN'S ESTIMATE AND FRANKLIN RESOURCES IS AT 21 TIMES REPORTED EARNINGS FOR THE YEAR ENDED SEPT TODAY LESS THAN 9 BILLION OF DREYFUS'S ASSETS UNDER MANAGEMENT IS IN STOCKFUND ASSETS COMPARED WITH 63 BILLION IN MONEYMARKET AND MUNICIPALBOND FUNDS DALBAR'S MR HARVEY THINKS DREYFUS WOULD MAKE A GREAT ACQUISITION I STILL BELIEVE THAT MUTUALFUND MANAGEMENT COMPANIES ARE UNDERVALUED GIVEN THEIR GROWTH POTENTIAL HE SAID OUR PROJECTION IS THAT THIS WILL BE A 4 TRILLION INDUSTRY BY THE END OF DECADE UP FROM 2 TRILLION UNDER MANAGEMENT NOW ALTHOUGH DREYFUS MAY BE INTERESTED IN SELLING ITS BUSINESS ANALYSTS SAY THAT A HOSTILE TAKEOVER IS UNLIKELY THE REASON IS THAT ALL THE MANAGEMENT CONTRACTS OF THE COMPANY'S FUNDS CAN BE RESCINDED IF THERE'S A CHANGE IN CONTROL THAT THE DIRECTORS DON'T LIKE EXPLAINED JOHN KEEFE A FUNDINDUSTRY CONSULTANT BASED IN NEW YORK YOU COULD COME IN AND SUCCESSFULLY ACQUIRE THE COMPANY AND WIND UP WITH NO MUTUAL FUNDS TO MANAGE AND SOME AT LEAST DON'T RULE OUT THE POSSIBILITY THAT DREYFUS WILL TURN AROUND AND MAKE AN ACQUISITION ITSELF IN SEPTEMBER DREYFUS REGISTERED TO SELL 250 MILLION IN NEW DEBENTURES THE PROCEEDS FROM THE BOND SALE IF IT WENT AHEAD COULD HELP FINANCE AN ACQUISITION BY THE NEW YORK FUND COMPANY RANDALL SMITH CONTRIBUTED TO THIS ARTICLE 9311120049 931112 BUSINESS BRIEF USBANCORP INC ACCORD IS REACHED TO BUY JOHNSTOWN SAVINGS BANK USBANCORP INC CONTINUING ITS GROWTH STRATEGY INTO WESTERN PENNSYLVANIA ACQUIRED JOHNSTOWN SAVINGS BANK IN A STOCK AND CASH TRANSACTION VALUED AT 475 MILLION UNDER TERMS JOHNSTOWN SAVINGS BANK WILL MERGE WITH US NATIONAL BANK IN JOHNSTOWN A UNIT OF USBANCORP JOHNSTOWN PA SHAREHOLDERS OF JOHNSTOWN SAVINGS BANK ALSO BASED IN JOHNSTOWN WILL RECEIVE 0528 USBANCORP COMMON SHARE AND 1103 IN CASH FOR EVERY JOHNSTOWN SAVINGS BANK COMMON SHARE HELD IN NASDAQ STOCK MARKET TRADING YESTERDAY JOHNSTOWN SAVINGS ROSE 2 OR 105 TO 21 ON TUESDAY THE STOCK ROSE 250 ON WEDNESDAY THE COMPANY ASKED FOR A HALT IN TRADING JOHNSTOWN SAVINGS HOLDERS MAY ELECT TO RECEIVE ALL STOCK OR ALL CASH PROVIDED THAT USBANCORP WILL ISSUE NO MORE THAN 1025616 COMMON SHARES AND WILL PAY NO MORE THAN 22645818 IN CASH REPRESENTING A 55 STOCK AND 45 CASH SPLIT THE MERGER WILL INCREASE USBANCORP'S TOTAL ASSETS BY 28 TO 16 BILLION AND DEPOSITS WILL INCREASE 20 TO 13 BILLION 9311120048 931112 BUSINESS BRIEF CONSOLIDATED NATURAL GAS CO A NATURALGAS MARKET HUB WITH TEXACO IS BEING MULLED CONSOLIDATED NATURAL GAS CO SAID IT IS STUDYING THE FEASIBILITY OF ESTABLISHING A NEW NATURAL GAS MARKET HUB WITH TEXACO INC TO SERVE THE NORTHEASTERN US CONSOLIDATED SAID SUCH A HUB IF CREATED WOULD BE ESTABLISHED ON THE SYSTEM OF ITS INTERSTATE PIPELINE UNIT CNG TRANSMISSION CORP THE HUB WOULD BE OPERATED JOINTLY BY TEXACO'S SABINE PIPE LINE CO AND CNG TRANSMISSION THE PITTSBURGH NATURAL GAS COMPANY SAID THE INTENTION OF THE STUDY AMONG OTHER THINGS IS TO IDENTIFY PRODUCTS AND SERVICES AVAILABLE TO CUSTOMERS AND TO DETERMINE WHETHER HUBS SHOULD BE SET UP AT SEVERAL LOCATIONS ON CNG TRANSMISSION'S SYSTEM OR IF A SUPER HUB' SYSTEM INVOLVING SEVERAL PIPELINE INTERCONNECTS SHOULD BE ESTABLISHED CONSOLIDATED SAID IT EXPECTS THE STUDY TO BE COMPLETED BY YEAR'S END 9311120047 931112 BUSINESS BRIEF PEARSON PLC MEDIA FIRM OUTLINES TERMS OF ROYAL DOULTON SPINOFF BRITISH MEDIA COMPANY PEARSON PLC ANNOUNCED THE TERMS OF THE PROPOSED SPINOFF OF ITS ROYAL DOULTON FINECHINA UNIT SAYING THAT SHAREHOLDERS WILL RECEIVE ONE ROYAL DOULTON SHARE FOR EVERY 10 PEARSON SHARES HELD PEARSON SAID ROYAL DOULTON INTENDS TO PAY A FINAL DIVIDEND FOR THE YEAR OF THREE PENCE 44 CENTS A SHARE SEPARATELY PEARSON SAID THAT SALES REMAIN SUBDUED BUT THAT IT HAS CONTINUED TO BENEFIT FROM COST REDUCTIONS UNAUDITED PRETAX PROFIT FOR THE THIRD QUARTER WAS 1006 MILLION 1487 MILLION COMPARED WITH 617 MILLION A YEAR EARLIER PEARSON SAID AFTER ADJUSTING FOR EXCHANGERATE MOVEMENTS PRETAX PROFIT WAS UP BY 265 MILLION OR ABOUT 43 PEARSON ADDED LOOKING AHEAD TO 1994 PEARSON SAID BUSINESS CONDITIONS AT ROYAL DOULTON ARE LIKELY TO REMAIN DIFFICULT BUT ROYAL DOULTON WILL BENEFIT FROM A MODEST INCREASE IN DEMAND IN THE UNITED KINGDOM AND THE US FROM COSTCUTTING PROGRAMS AND FROM MOREFAVORABLE EXCHANGE RATES THE COMPANY ADDED 9311120046 931112 BUSINESS BRIEF WORDPERFECT CORP SOFTWARE MAKER PLANS TO BUY SOFTSOLUTIONS TECHNOLOGY SOFTWARE MAKER WORDPERFECT CORP SIGNED A LETTER OF INTENT TO PURCHASE SOFTSOLUTIONS TECHNOLOGY CORP TERMS WEREN'T DISCLOSED BUT WORDPERFECT SAID SOFTSOLUTIONS WOULD OPERATE AS AN INDEPENDENT UNIT KEN DUNCAN WILL REMAIN SOFTSOLUTIONS' PRESIDENT SOFTSOLUTIONS IS A DOCUMENTMANAGEMENT PROVIDER FOR THE LOCALAREA NETWORK MARKET BOTH COMPANIES ARE BASED IN OREM UTAH 9311120045 931112 BUSINESS BRIEF AIR CANADA AIRLINE SELLS STOCK WARRANTS TO GROUP OF UNDERWRITERS AIR CANADA SAID IT SOLD 35 MILLION STOCKWARRANT UNITS TO A GROUP OF UNDERWRITERS FOR 201 MILLION CANADIAN DOLLARS US1537 MILLION THE MONTREAL AIRLINE SAID THE TOTAL COULD RISE TO C250 MILLION IF THE UNDERWRITERS LED BY RBC DOMINION SECURITIES INC EXERCISE AN OPTION TO INCREASE THE ISSUE TO 435 MILLION UNITS EACH UNIT PRICED AT C575 US440 INCLUDES ONE COMMON SHARE AND ONEHALF COMMON SHARE PURCHASE WARRANT A FULL WARRANT ENTITLES THE HOLDER TO BUY ONE COMMON SHARE FROM AIR CANADA FOR C625 WITHIN TWO YEARS IN TRADING ON THE TORONTO STOCK EXCHANGE AIR CANADA'S SHARES CLOSED AT C525 EACH DOWN 50 CANADIAN CENTS THE COMPANY HAD 74 MILLION COMMON SHARES OUTSTANDING SEPARATELY AIR CANADA SAID IT HAD NET INCOME OF C43 MILLION OR 57 CANADIAN CENTS A SHARE IN THE THIRD QUARTER COMPARED WITH A LOSS OF C14 MILLION OR 19 CANADIAN CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO C103 BILLION FROM C1 BILLION 9311120044 931112 BUSINESS BRIEF ROYAL INSURANCE HOLDINGS PLC BRITISH CONCERN HAS PROFIT AFTER LOSS A YEAR EARLIER BRITISH INSURER ROYAL INSURANCE HOLDINGS PLC POSTED A 113 MILLION 1671 MILLION PRETAX PROFIT FOR THE FIRST NINE MONTHS OF 1993 A SWING FROM AN 83 MILLION LOSS IN THE YEAREARLIER PERIOD IN THE THIRD QUARTER ROYAL TURNED A PROFIT OF 61 MILLION AGAINST A LOSS OF 4 MILLION ROYAL SAID ITS UK OPERATIONS WERE THE MAIN CONTRIBUTOR TO THE TURNAROUND IN RESULTS THOSE OPERATIONS TURNED A NINEMONTH PROFIT OF 150 MILLION A SWING FROM A 57 MILLION LOSS IN THE YEAREARLIER PERIOD THE RECOVERY WAS LED BY THE PERSONALLINES BUSINESS COMMERCIAL LINES SHOWED OVERALL IMPROVEMENT ROYAL SAID ROYAL SAID THAT ITS ROYAL INSURANCE GLOBAL UNIT ALSO HAD A MARKEDLY BETTER RESULT AND HAS GAINED A NUMBER OF MAJOR NEW ACCOUNTS 9311120043 931112 BUSINESS BRIEF LUFTHANSA AG LOSS FOR 1993 IS EXPECTED DESPITE GOOD 3RD QUARTER DESPITE A GOOD THIRD QUARTER LUFTHANSA AG IS STILL ON TRACK TO POST LOSSES FOR 1993 ACCORDING TO WOLFGANG ROELLER A MEMBER OF LUFTHANSA'S BOARD OF SUPERVISORS EARLIER IN THE WEEK THE GERMAN AIRLINE REPORTED A THIRDQUARTER PROFIT OF 145 MILLION MARKS 858 MILLION AFTER LOSSES OF 221 MILLION MARKS IN THE FIRST HALF OF 1993 MR ROELLER WHO MADE HIS COMMENTS IN A COMPANY PUBLICATION DER LUFTHANSEAT NOTED THAT COSTCUTTING AND RISING PRODUCTIVITY HAVE COMBINED TO PUT THE CARRIER BACK ON THE UPWARD TRACK HOWEVER THIS HASN'T BEEN ENOUGH TO OVERCOME THE PROBLEMS LUFTHANSA FACES 9311120042 931112 BUSINESS BRIEF GENELABS TECHNOLOGIES INC PACT IS SIGNED WITH STANFORD TO PURSUE LUPUS TREATMENT GENELABS TECHNOLOGIES INC SAID IT SIGNED AN EXCLUSIVE LICENSE WITH STANFORD UNIVERSITY FOR THE DEVELOPMENT OF THE HORMONE DHEA AS AN EXPERIMENTAL TREATMENT FOR LUPUS GENELABS BASED IN REDWOOD CITY CALIF IS A BIOTECHNOLOGY COMPANY LUPUS IS AN AUTOIMMUNE DISEASE IN WHICH THE BODY'S IMMUNE DEFENSE SYSTEM GOES AWRY ATTACKING THE SKIN JOINTS AND INTERNAL ORGANS CURRENTLY IT IS TREATABLE WITH STEROID DRUGS BUT SUCH DRUGS CAN HAVE SERIOUS SIDE EFFECTS INCLUDING IMMUNE SUPPRESSION DHEA IS A HORMONE PRODUCED IN THE ADRENAL GLANDS THAT IS ABNORMALLY LOW IN LUPUS PATIENTS IN A RECENT CLINICAL TRIAL STANFORD SCIENTISTS FOUND THAT THE HORMONE REDUCED SYMPTOMS IN ABOUT HALF OF 15 PATIENTS TREATED ON THE NASDAQ STOCK MARKET GENELABS SHARES CLOSED AT 5 UP 375 CENTS 9311120041 931112 YOUR MONEY MATTERS WEEKEND REPORT YEAREND FINANCIAL PLANNING IT'S TIME TO START PLANNING FOR THE NEW YEAR EMPLOYEES CAN AVOID HIGHER BENEFIT COSTS BY DEBORAH LOHSE STAFF REPORTER OF THE WALL STREET JOURNAL ON YOUR TOES WHILE THE END OF 1993 MAY STILL SEEM A LONG WAY OFF THE TIME FOR DOING SOME SERIOUS FINANCIAL PLANNING FOR THE NEW YEAR IS FAST RUNNING OUT THAT'S ESPECIALLY TRUE WHEN IT COMES TO COMPANY BENEFITS AN AREA THAT HAS GROWN INCREASINGLY COMPLEX IN RECENT YEARS AS HARDPRESSED EMPLOYERS HAVE CUT BACK COVERAGE AND PASSED ON MORE COSTS TO EMPLOYEES NOVEMBER IS TRADITIONALLY THE MONTH WHEN WORKERS MUST NOTIFY THEIR EMPLOYERS ABOUT ANY CHANGES THEY WANT TO MAKE IN THEIR HEALTH COVERAGE THEIR LIFE AND DISABILITY INSURANCE OR OTHER ASPECTS OF THEIR BENEFIT PACKAGES IT'S AN ANNUAL WINDOW OF OPPORTUNITY THAT IS BECOMING INCREASINGLY COSTLY TO IGNORE MANY COMPANIES FOR INSTANCE HAVE BEEN ASKING WORKERS TO PAY A GREATER SHARE OF HEALTHINSURANCE PREMIUMS OR HIGHER DEDUCTIBLES THAN ONLY A FEW YEARS AGO YOU HAVE TO PAY CLOSE ATTENTION SAYS JOSEPH MARTINGALE A VICE PRESIDENT AT BENEFIT CONSULTANTS TOWERS PERRIN IN NEW YORK THE COST OF PARTICIPATION IN THESE PLANS INCREASES REGULARLY BUT THERE ARE WAYS TO PARE THE EXPENSE SOME EMPLOYEES WHO HAVE BEEN USING A TRADITIONAL HEALTH PLAN THAT REIMBURSES THEM FOR A MAJOR PORTION OF VIRTUALLY ANY MEDICAL BILL MIGHT SWITCH TO A MANAGEDCARE PLAN SUCH AS A HEALTHMAINTENANCE ORGANIZATION REIMBURSEMENT OR FLEXIBLESPENDING ACCOUNTS THAT ALLOW EMPLOYEES TO PAY ELIGIBLE EXPENSES WITH PRETAX DOLLARS CAN ALSO MEAN SIGNIFICANT SAVINGS AND SOME DUALCAREER COUPLES CURRENTLY PAYING FOR HEALTH COVERAGE FROM SEPARATE EMPLOYERS MIGHT WANT TO DROP ONE OF THE PLANS ANY OF THESE MOVES ALONE OR IN CONCERT CAN CUT HEALTH COSTS BY AS MUCH AS 40 AND IN SOME CASES EVEN MORE SAYS FRED RUMACK DIRECTOR OF TAX AND LEGAL SERVICES FOR BUCK CONSULTANTS IN NEW YORK WHILE TRADITIONAL FEEFORSERVICE COVERAGE USUALLY GIVES EMPLOYEES THE GREATEST FREEDOM TO CHOSE THEIR OWN DOCTORS THESE PLANS ARE TYPICALLY THE MOST EXPENSIVE YOU MIGHT WANT TO TAKE A CLOSER LOOK AT MANAGEDCARE ALTERNATIVES ESPECIALLY IF YOU HAVEN'T BEFORE SAYS JOHN HICKEY A PARTNER WITH BENEFIT CONSULTANTS KWASHA LIPTON IN FORT LEE NJ HMOS AND PREFERREDPROVIDER PLANS GENERALLY COST LESS IN ANNUAL PREMIUMS AND PERVISIT CHARGES THAN OTHER INSURANCE WHILE RESTRICTING YOU TO SEEING PREAPPROVED DOCTORS AND HOSPITALS FOR MOST OF YOUR CARE MR HICKEY RECOMMENDS TALKING TO COWORKERS WHO HAVE CHOSEN THE COMPANY'S MANAGEDCARE PLAN FINDING OUT WHETHER FAVORITE DOCTORS ARE ON THE LIST OF PROVIDERS FROM WHICH TO CHOOSE AND THEN SITTING DOWN WITH THE PLAN DESCRIPTION TO PINPOINT EXACTLY HOW MUCH WOULD BE SAVED FOR A TYPICAL YEAR'S HEALTH CARE ALSO LOOK CLOSELY AT WHETHER YOU WOULD LOSE ANY BENEFITS BY SWITCHING WHILE HMOS ARE GENEROUS IN COVERING GENERAL PREVENTIVE MEDICINE THEY MAY PLACE LIMITS ON CARE SUCH AS PSYCHIATRY OR SERVICES FOR KIDS AWAY AT COLLEGE MR HICKEY NOTES TWOINCOME COUPLES WHO ARE PAYING PREMIUMS FOR OVERLAPPING COVERAGE THROUGH SEPARATE EMPLOYERS SHOULD EXAMINE WHETHER THEY ARE ACTUALLY GETTING A BENEFIT FROM DOING SO ADVISERS SAY IN THE PAST MANY COUPLES COULD OFTEN FINAGLE 100 MEDICAL COVERAGE BY HAVING ONE SPOUSE'S PLAN PAY SAY 80 OF A HOSPITAL BILL AND THEN HAVING THE SECOND PLAN PAY THE BALANCE INCREASINGLY THOUGH PLANS WILL REFUSE TO PAY AMOUNTS THAT COMBINED WITH PROCEEDS FROM ANOTHER POLICY ADD UP TO MORE THAN 75 OR 80 OF EMPLOYEES' HEALTHCARE BILLS MOREOVER SOME EMPLOYERS ARE EVEN BRIBING WORKERS WITH MONTHLY PAYMENTS IF THEY'LL DECLINE THE COMPANY'S COVERAGE AND JOIN A SPOUSE'S PLAN INSTEAD IT'S WORTHWHILE TO FIGURE OUT IF IT MAKES SENSE TO BE COVERED BY TWO PLANS SAYS MR HICKEY SOME WORKERS WORRY THAT IF THEY DROP A POLICY AND ONE SPOUSE LOSES HIS OR HER JOB THE FAMILY COULD BE LEFT WITHOUT INSURANCE BUT MOST PLANS WILL ALLOW A WORKER TO SIGN BACK UP WITHIN 30 DAYS AFTER A MAJOR EVENT SUCH AS A SPOUSE'S LAYOFF ADVISERS SAY BEFORE DROPPING A PLAN HOWEVER EMPLOYEES SHOULD FIND OUT WHETHER THE PLAN WILL STILL PAY FOR CONDITIONS THAT MIGHT HAVE CROPPED UP WHILE THEY WERE COVERED ELSEWHERE IF YOU DECIDE YOU CAN MAKE DO WITH ONLY ONE PLAN MICHAEL J GULOTTA PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ACTUARIAL SCIENCES ASSOCIATES INC A BENEFITCONSULTING SUBSIDIARY OF AMERICAN TELEPHONE & TELEGRAPH CO RECOMMENDS THAT YOU CONSTRUCT A MODEL OF YOUR PROBABLE EXPENSES FOR THE YEAR AND THEN DECIDE WHICH OF THE TWO PLANS WILL BE MORE EFFECTIVE FOR THE KINDS OF EXPENSES YOU EXPECT MANY HEALTHCARE COSTS THAT WORKERS PAY DURING THE YEAR CAN BE MINIMIZED BY USING THE REIMBURSEMENT OR FLEXIBLESPENDING ACCOUNTS NOW OFFERED BY MORE THAN HALF OF ALL MAJOR EMPLOYERS THESE ACCOUNTS ALLOW WORKERS TO HAVE A PRESET AMOUNT WITHHELD FROM THEIR PAYCHECKS AND SET ASIDE TO REIMBURSE THEM FOR A VARIETY OF HEALTH EXPENSES CONTRIBUTIONS AREN'T SUBJECT TO FEDERAL INCOME TAXES AND ARE USUALLY FREE OF STATE AND LOCAL INCOME TAX IF THE WORKER'S INCOME IS LESS THAN ABOUT 60000 THE ACCOUNTS ALSO AVOID THE COMBINED 765 SOCIAL SECURITY AND MEDICARE LEVY AS WELL THE TAX SAVINGS CAN MAKE A BIG DIFFERENCE PAYING 2000 OF AN ORTHODONTIST'S BILL FROM A FLEXIBLESPENDING ACCOUNT RATHER THAN STRAIGHT OUT OF POCKET FOR EXAMPLE COULD EASILY SAVE MORE THAN 800 IN TAXES THAT'S ASSUMING THE EMPLOYEE IS IN THE 28 FEDERAL TAX BRACKET A 5 STATE TAX BRACKET AND PAYS THE 765 SOCIAL SECURITY AND MEDICARE TAX THE BIGGEST DRAWBACK WITH FLEXIBLESPENDING ACCOUNTS ADVISERS CONCEDE IS THAT ANY FUNDS NOT SPENT ON QUALIFYING EXPENSES DURING THE YEAR ARE FORFEITED TO AVOID THIS USE IT OR LOSE IT TRAP WORKERS SHOULD LOOK THROUGH THEIR 1993 RECEIPTS CHECKBOOK REGISTERS AND CREDITCARD STATEMENTS TO PINPOINT EXACTLY HOW MUCH THEY'RE LIKELY TO SPEND NEXT YEAR ON ELIGIBLE EXPENSES UNDER INTERNAL REVENUE SERVICE RULES ALLOWABLE COSTS INCLUDE MOST CHARGES THAT YOU CAN DEDUCT AS A MEDICAL EXPENSE ON YOUR INCOME TAX THESE COSTS INCLUDE VISION AND DENTAL CARE ACUPUNCTURE CHIROPRACTOR VISITS HEARING AIDS OR VISITS TO A PSYCHOLOGIST COMPANIES CAN BE MORE RESTRICTIVE BUT SOME FINANCIAL ADVISERS SAY YOU MAY BE ABLE TO PERSUADE YOUR EMPLOYER TO GO ALONG WITH A CHARGE THAT ISN'T ON THE COMPANY'S APPROVE LIST BY REFERRING YOUR BENEFIT OFFICE TO IRS PUBLICATION 502 MEDICAL AND DENTAL EXPENSES WORKERS CAN ALSO PAY INSURANCE DEDUCTIBLES AND COPAYMENTS BUT NOT PREMIUMS FROM A FLEXIBLESPENDING ACCOUNT PEOPLE WHO EXPECT TO HAVE LARGE ONETIME HEALTH COSTS IN 1994 SUCH AS BRACES FOR THE KIDS' TEETH OR THE BIRTH OF A CHILD SHOULD ARRANGE TO PUT THEIR SHARE OF SUCH COSTS INTO A REIMBURSEMENT ACCOUNT SAYS TOM BILLET PRINCIPAL AT BENEFIT CONSULTANTS FOSTER HIGGINS IN STAMFORD CONN ALTHOUGH THERE IS NO LEGAL CAP MANY EMPLOYERS LIMIT THE AMOUNT EMPLOYEES CAN STASH IN A MEDICAL REIMBURSEMENT ACCOUNT TO 1500 TO 3000 IT'S DUMB TO PASS ON IT ENTIRELY BECAUSE YOU KNOW YOU ARE GOING TO SPEND SOMETHING SAYS MR BILLET ALSO SEE IF YOUR COMPANY OFFERS A DEPENDENTCARE ACCOUNT THIS WORKS LIKE A MEDICALREIMBURSEMENT ACCOUNT IN THAT MONEY IS SET ASIDE FROM YOUR PRETAX PAY TO COVER ELIGIBLE EXPENSES IN THE CASE OF DEPENDENTCARE ACCOUNTS THE MONEY CAN BE USED TO PAY FOR BABYSITTERS DAY CAMP PRESCHOOL OR OTHER CHILD CARE THAT MAKES IT POSSIBLE FOR YOU TO GO TO WORK COSTS FOR CARING FOR AN ELDERLY OR MENTALLY DISABLED DEPENDENT MAY ALSO QUALIFY THE MAXIMUM THAT CAN BE CONTRIBUTED TO SUCH ACCOUNTS IS 5000 SEE RELATED ARTICLE PERFORMANCE AND FEES SHOULD GUIDE CHOICES WSJ NOV 12 1993 9311120040 931112 TECHNOLOGY AIDS VACCINES FAIL IN LABORATORY TESTS RESEARCHERS REPORT WASHINGTON AP PROMISING VACCINES AGAINST THE AIDS VIRUS HAVE FAILED IN KEY LABORATORY TESTS RAISING THE POSSIBILITY THAT LARGESCALE TRIALS MAY BE DELAYED RESEARCHERS SAID SEVERAL VACCINES THAT HAD TRIGGERED NEUTRALIZING ANTIBODIES IN TESTS AGAINST LABORATORY STRAINS OF THE AIDS VIRUS WERE UNABLE TO CAUSE THE SAME EFFECT WHEN TESTED AGAINST FRESH VIRUS TAKEN FROM PATIENTS RESEARCHERS REPORTED AT A RECENT CONFERENCE SPONSORED BY THE NATIONAL INSTITUTES OF HEALTH IT CERTAINLY DOES MAKE ME ANXIOUS ABOUT GOING FORWARD WITH LARGESCALE EFFICACY TRIALS ANTHONY FAUCI TOLD THE JOURNAL SCIENCE DR FAUCI HEADS THE NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASE THE LEAD NIH AGENCY IN THE FIGHT AGAINST ACQUIRED IMMUNE DEFICIENCY SYNDROME SCIENCE THE JOURNAL OF THE AMERICAN ASSOCIATION FOR THE ADVANCEMENT OF SCIENCE SAID IN A REPORT TO BE RELEASED TODAY THAT THREE NEW STUDIES HAVE SHOWN THAT CANDIDATE VACCINES INJECTED INTO HEALTHY VOLUNTEERS DID CAUSE PRODUCTION OF ANTIBODIES THAT WERE EFFECTIVE AGAINST LABORATORY STRAINS OF THE AIDS VIRUS BUT THESE ANTIBODIES WERE INEFFECTIVE IN LAB TESTS AGAINST FRESH STRAINS OF AIDS VIRUS THAT HAD BEEN TAKEN RECENTLY FROM THE BLOOD OF PATIENTS TO BE EFFECTIVE A VACCINE HAS TO CAUSE THE BODY'S IMMUNE SYSTEM TO MAKE ANTIBODIES THAT WILL SPECIFICALLY ATTACK THE TARGET VIRUS BUT THE AIDS VIRUS IS NOTORIOUS FOR MAKING RAPID CHANGES CREATING A VARIETY OF STRAINS THAT IN TURN CONSTANTLY CHANGE AS A RESULT ANTIBODIES THAT MAY ATTACK ONE VARIANT OF THE AIDS VIRUS MAY BE LESS EFFECTIVE AGAINST OTHERS IN TESTS AT DUKE UNIVERSITY ANTIBODIES TAKEN FROM 40 VOLUNTEERS WHO HAD RECEIVED A CANDIDATE AIDS VACCINE WERE INEFFECTIVE WHEN TESTED AGAINST VIRUS FROM CURRENT AIDS PATIENTS SIMILAR TESTS WITH SIMILAR RESULTS WERE CONDUCTED AT WALTER REED ARMY INSTITUTE OF RESEARCH AND AT CHIRON CORP OFFICIALS AT THE INFECTIOUSDISEASE INSTITUTE HAVE CALLED FOR A MEETING NEXT SPRING TO EVALUATE THESE TESTS AND DECIDE WHETHER TO GO FORWARD WITH VACCINE TESTS IN THE US WHICH HAD BEEN ENVISIONED FOR AS EARLY AS NEXT YEAR 9311120039 931112 LEGAL BEAT OBESE WORKERS WIN ONTHEJOB PROTECTION AGAINST BIAS BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL THE US EQUAL EMPLOYMENT OPPORTUNITY COMMISSION HAS DECLARED OBESITY A PROTECTED CATEGORY UNDER THE FEDERAL DISABILITIES LAW REFLECTING A BROADENING LEGAL PUSH BY OVERWEIGHT PEOPLE FOR WORKPLACE EQUALITY IN ITS FIRST STATEMENT ON THE ISSUE EEOC HAS DETERMINED THAT PEOPLE WHO HAVE BEEN EXTREMELY OVERWEIGHT FOR A LONG PERIOD OF TIME MAY QUALIFY FOR FEDERAL PROTECTION AND ACCORDING TO THE EEOC SUCH PROTECTION APPLIES EVEN THOUGH THE INDIVIDUAL MIGHT BE ABLE TO DIET AND LOSE WEIGHT BY TAKING THIS POSITION THE EEOC CLEARS THE WAY FOR OBESE PEOPLE TO BRING DISCRIMINATION CLAIMS UNDER THE AMERICANS WITH DISABILITIES ACT ALTHOUGH JUDGES WILL HAVE TO REACH THEIR OWN CONCLUSIONS ON WHETHER TO ADOPT THE EEOC INTERPRETATION THE DEVELOPMENT COMES AT A TIME WHEN OVERWEIGHT PEOPLE AND THEIR ADVOCATES ARE BECOMING INCREASINGLY VOCAL ABOUT SOCIETY'S BIASES AGAINST SIZE A RECENT STUDY FROM HARVARD MEDICAL SCHOOL LINKING OBESITY TO LOW ECONOMIC STATUS PROMPTED THE RESEARCHERS TO SUGGEST THAT OVERWEIGHT PEOPLE BE PROTECTED FROM JOB DISCRIMINATION AND ACTIVISTS HAVE BEGUN LOBBYING TO INCLUDE WEIGHT ALONG WITH RACE AND SEX IN STATE CIVILRIGHTS LAWS WE'RE THE LAST SAFE PREJUDICE SAID LYNN MELETICHE A NEW YORK NURSE AND VICE PRESIDENT OF THE NATIONAL ASSOCIATION TO ADVANCE FAT ACCEPTANCE WHICH FIGHTS DISCRIMINATION THE FAT PERSON IS THE LAST PERSON YOU CAN SAFELY KICK AROUND THE EEOC POSITION WAS SET OUT IN A BRIEF FILED IN THE CASE OF BONNIE COOK A 300POUND RHODE ISLAND WOMAN WHO WAS TURNED DOWN FOR AN ATTENDANT'S JOB AT A STATE SCHOOL FOR THE MENTALLY RETARDED MS COOK HAD HELD THE SAME JOB A FEW YEARS EARLIER WHEN SHE WEIGHED ABOUT THE SAME AMOUNT BUT THIS TIME AROUND SHE WAS TOLD THAT HER WEIGHT DISQUALIFIED HER A JURY LAST YEAR FOUND THAT MS COOK HAD BEEN ILLEGALLY DISCRIMINATED AGAINST AND AWARDED HER 100000 IN DAMAGES BUT THE RHODE ISLAND DEPARTMENT OF MENTAL HEALTH RETARDATION AND HOSPITALS APPEALED THE VERDICT ARGUING THAT OBESITY ISN'T PROTECTED UNDER DISCRIMINATION LAWS BECAUSE IT IS A CONDITION THAT MS COOK COULD CHANGE THE CASE IS AWAITING A DECISION BY THE FIRST US CIRCUIT COURT OF APPEALS WHICH WOULD BE THE FIRST FEDERAL APPELLATE COURT TO ADDRESS THE ISSUE WE ARE CONCERNED ABOUT ANY ARBITRARY LIMITATION ON EMPLOYMENT AND THIS IS ABOUT AS ARBITRARY AS YOU GET SAID STEVEN BROWN EXECUTIVE DIRECTOR OF THE AMERICAN CIVIL LIBERTIES UNION AFFILIATE IN RHODE ISLAND WHICH IS BACKING MS COOK OBESE PEOPLE ARE DENIED JOBS SOLELY ON THE BASIS OF STEREOTYPES OF HOW THEY CAN DO THE JOBS IN ITS BRIEF THE EEOC URGED THE COURT TO CONSIDER OBESITY JUST AS IT WOULD VIEW MANY OTHER CONDITIONS NOT SPECIFICALLY MENTIONED IN THE AMERICANS WITH DISABILITIES ACT BASED ON HOW LONG THE PERSON HAS BEEN AFFECTED BY THE CONDITION AND HOW DIFFICULT IT WOULD BE TO CHANGE NOTING THAT OBESITY ISN'T WHAT MIGHT BE CONSIDERED A TRADITIONAL DISABILITY THE EEOC SAID THAT ALTHOUGH IT IS POSSIBLE FOR AN OBESE INDIVIDUAL TO LOSE WEIGHT OBESITY IS A CHRONIC LIFELONG CONDITION IT IS NOT NECESSARY THAT A CONDITION BE INVOLUNTARY OR IMMUTABLE TO BE COVERED THE BRIEF WAS FILED IN COURT IN JULY BUT WASN'T PUBLICIZED IT CAME TO LIGHT AS EMPLOYMENT LAWYERS BEGAN CIRCULATING IT IN RECENT WEEKS THE PARTICULAR CASE INVOLVES WHAT IS KNOWN AS MORBID OR SEVERE OBESITY A RARE CONDITION IN WHICH A PERSON'S WEIGHT IS AT LEAST TWICE AS MUCH AS THE NORM FOR ONE'S HEIGHT BUT THE EEOC DIDN'T SAY THAT PROTECTION WAS LIMITED TO SUCH PEOPLE AND MANY EMPLOYMENT LAWYERS BELIEVE THE EEOC'S POSITION OPENS THE WAY FOR DISCRIMINATION CLAIMS IN LESS EXTREME CASES DISCRIMINATION CLAIMS UNDER THE DISABILITIES ACT MUST BE FILED FIRST WITH THE EEOC WHICH DETERMINES WHICH CASES HAVE SUFFICIENT MERIT TO JUSTIFY A LAWSUIT IT IS A SIGNAL THAT THE EEOC WILL BE LOOKING AT OBESITY IN A NEW LIGHT SAID MICHAEL P PAPPAS A MANAGEMENT ATTORNEY AT NEW YORK LAW FIRM ORRICK HERRINGTON & SUTCLIFFE ALL TYPES OF PEOPLE ARE STARTING TO ASSERT THEIR RIGHTS THE IDEA IS THAT THE WAY A PERSON LOOKS SHOULDN'T AFFECT THEIR ABILITY TO GET WORK BUT THE EEOC'S POSITION IS BEING VIEWED WITH CAUTION BY SOME LAWYERS WHO REPRESENT EMPLOYERS ONE CONCERN IS POTENTIAL CONFUSION OVER HOW OVERWEIGHT A PERSON WOULD HAVE TO BE TO QUALIFY FOR PROTECTION THE PROBLEM IS THAT THERE IS NO BRIGHTLINE TEST SAID MATT HALPERN AN ATTORNEY WITH THE WOODBURY NY OFFICE OF JACKSON LEWIS SCHNITZLER & KRUPMAN IN DIFFERENT SITUATIONS A COURT COULD SAY THAT 70 OVERWEIGHT MEETS THE EEOC STANDARD MR HALPERN ADDED IN ADDITION SOME LAWYERS SAY THAT THE EEOC POSITION COULD RAISE QUESTIONS ABOUT COMPANIES' SOCALLED WELLNESS PROGRAMS WHICH REWARD WORKERS FOR LOSING WEIGHT AND MAKING OTHER CHANGES PERHAPS A PERSON SHOULD BE ENCOURAGED TO TAKE STEPS TO LOSE WEIGHT SAID EDWARD BERGMANN AN ATTORNEY AT SEYFARTH SHAW FAIRWEATHER & GERALDSON IN CHICAGO ADVOCATES FOR THE RIGHTS OF OVERWEIGHT PEOPLE HOWEVER SAY BEING FAT DOESN'T NECESSARILY MEAN POOR HEALTH AND SOME OF THEM BRIDLE AT THE FACT THAT THEIR ONLY RECOURSE TO FIGHT DISCRIMINATION APPEARS TO BE THROUGH LAWS MEANT TO PROTECT THE DISABLED IT'S OFFENSIVE SAYS FRANCES WHITE NAAFA PRESIDENT I AM NOT DISABLED I AM AN EXTREMELY HEALTHY PERSON INSTEAD SHE AND HER GROUP WOULD LIKE TO SEE THE CIVILRIGHTS LAWS CHANGED TO ADDRESS WEIGHT SPECIFICALLY CURRENTLY ONLY ONE STATE MICHIGAN HAS SUCH A LAW BUT PROPOSALS ARE BEING WORKED ON IN TEXAS NEW YORK AND CALIFORNIA OBESE PEOPLE SAY CIVILRIGHTS PROTECTION IS NECESSARY BECAUSE OF THE INSIDIOUS NATURE OF THE DISCRIMINATION THEY FACE THEY SAY THAT DESPITE THEIR JOB QUALIFICATIONS MANY EMPLOYERS AUTOMATICALLY ASSUME THAT FAT PEOPLE ARE UNPRODUCTIVE AND CAN'T DO CERTAIN TASKS MS WHITE 50 YEARS OLD SAID SHE SPENT TWO AND A HALF YEARS AS A LONGTERM TEMP AT VARIOUS JOBS BEFORE SHE WAS HIRED IN JUNE AT A PUBLICTV STATION IN SAN FRANCISCO DURING THAT TIME SHE APPLIED FOR ABOUT 200 JOBS AND WAS ASKED TO COME IN FOR INTERVIEWS FOR MORE THAN 30 OF THE JOBS ALTHOUGH THE STATE'S RECESSION HAS MADE JOB SEARCHES MORE DIFFICULT FOR MANY PEOPLE MS WHITE SAYS SHE BELIEVES HER WEIGHT 350 POUNDS KEPT HER FROM GETTING HIRED IN MANY CASES I WOULD RECEIVE A CALL TELLING ME I WAS EXACTLY WHAT THEY WERE LOOKING FOR BASED ON MY RESUME SAYS MS WHITE I WOULD BE VERY ENCOURAGED AND I WOULD SHOW UP FOR THE INTERVIEW AND THERE WOULD BE THIS SHOCKED LOOK ON THEIR FACES YOU'RE FRANCES WHITE' SUDDENLY THE JOB WASN'T AVAILABLE THREE RESEARCHERS HAVE ANNOUNCED A FIVEYEAR PROJECT TO DEVELOP STATISTICAL INFORMATION ABOUT HOW COMPANIES FARE IN BANKRUPTCYCOURT PROCEEDINGS ALTHOUGH MANY PROPOSALS HAVE BEEN MADE IN RECENT YEARS TO REFORM THE US BANKRUPTCY CODE LITTLE DATA ARE AVAILABLE TO EVALUATE THE PROCESS SAID PROF JAY LAWRENCE WESTBROOK OF THE UNIVERSITY OF TEXAS SCHOOL OF LAW ONE OF THE RESEARCHERS CURRENTLY THE ONLY STATISTICS AVAILABLE ARE THE NUMBER OF CASES FILED EACH YEAR AND THE TOTAL PENDING THE CRITICISM THAT HAS SPURRED TALK OF REFORM INCLUDING QUESTIONS ABOUT BANKRUPTCY'S FAIRNESS TO CREDITORS ITS COST AND IMPACT ON COMPETITION IS LARGELY BASED ON ANECDOTAL EVIDENCE FROM A FEW HIGHPROFILE CASES THE STUDY WILL BE FUNDED LARGELY BY A GRANT FROM THE NATIONAL CONFERENCE OF BANKRUPTCY JUDGES OTHER FUNDING IS BEING PROVIDED BY THE NEW ARTHUR L MOLLER CHAIR IN BANKRUPTCY LAW AT THE UNIVERSITY OF TEXAS IN THE STUDY WHICH IS EXPECTED TO BEGIN EARLY NEXT YEAR THE RESEARCHERS WILL TAKE A SAMPLE OF 3000 CASES FROM 20 BANKRUPTCY COURTS AROUND THE NATION AND FOLLOW THEM FOR FIVE YEARS DATA WILL BE COLLECTED ON HOW LONG COMPANIES OPERATE AFTER REORGANIZING THE NUMBER OF JOBS AT A COMPANY BEFORE AND AFTER IT GOES INTO BANKRUPTCY PROCEEDINGS AND HOW CREDITORS ARE AFFECTED MARINE RULING A JUDGE BARRED THE MILITARY FROM DISCHARGING A MARINE SERGEANT WHO PUBLICLY ANNOUNCED THAT HE IS GAY AFTER PRESIDENT CLINTON SAID HE INTENDED TO LIFT THE MILITARY'S BAN ON HOMOSEXUALS JUDGE STANLEY SPORKIN SAID THE PENTAGON HAD PRESENTED NO EVIDENCE THAT HOMOSEXUAL STATUS ALONE ADVERSELY AFFECTS THE ACCOMPLISHMENT OF THE MILITARY MISSION HE SAID THAT ALLOWING THE MILITARY TO KICK OUT THE MARINE SGT JUSTIN ELZIE WHO HAD SERVED FOR 11 YEARS AND OTHERS WOULD DEPRIVE OUR ARMED FORCES OF THE INTELLECTUAL AND PHYSICAL PROWESS OF SOME EXTRAORDINARILY TALENTED INDIVIDUALS 9311120037 931112 YOUR MONEY MATTERS WEEKEND REPORT IT'S TIME TO START PLANNING FOR THE NEW YEAR PERFORMANCE AND FEES SHOULD GUIDE CHOICES BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL FORTY MILLION PENSION MANAGERS CAN BE WRONG AND THEY DESERVE TO BE FIRED NOW THEY'RE THE EMPLOYEES WHO MAKE GOOFY CHOICES ABOUT HOW TO INVEST THE MONEY THEY'VE ACCUMULATED IN THEIR COMPANY RETIREMENT PLANS THEY IGNORE THE PERFORMANCE OF THE INVESTMENTS THEY ARE OBLIVIOUS TO THE FEES THEY PAY AND WHEN IT COMES TO DECISIONS ABOUT HOW TO ALLOCATE THE MONEY IN THEIR PLANS THEY STILL RELY ON MAGIC FORMULAS LIKE 5050 SPLITS BETWEEN STOCKS AND BONDS AND LISTEN TO WISDOM FROM THE WATER COOLER WIZARD EVERY COMPANY HAS ONE WHO PREDICTS THAT THE REALLY BIG LARGE STOCK FUND WILL BE NEXT YEAR'S BIG WINNER FORTUNATELY IF THIS DESCRIBES YOU YOU STILL HAVE ANOTHER CHANCE AS PART OF YOUR YEAREND BENEFITS PLANNING DECISIONS YOU CAN SHIFT THE MONEY IN YOUR RETIREMENT PLAN INTO MORE PRUDENT SELECTIONS YOU MAY ALSO BE ABLE TO SAVE MONEY AND IMPROVE YOUR RETURNS BY CHECKING ON THE FEES AND PERFORMANCE OF YOUR INVESTMENT OPTIONS FIRST REVIEW YOUR ALLOCATION STRATEGY MOST EMPLOYEES HAVE A CHOICE AMONG AT LEAST A HANDFUL OF STOCK BOND AND MONEYMARKET FUNDS PLUS A FIXEDRETURN ACCOUNT MOST PEOPLE WANT TO PLAY IT SAFE SO THEY KEEP THEIR MONEY IN THE FIXED ACCOUNTS AND MONEYMARKET FUNDS BUT THAT'S A MISTAKE EXPERTS SAY SINCE THE LOW RETURNS OF FIXEDRATE AND CASH INVESTMENTS WILL BE ERODED BY INFLATION PEOPLE WANT TO AVOID THE RISK OF THEIR MONEY FLUCTUATING BUT THEY'RE TAKING ON THE RISK OF OUTLIVING THEIR MONEY SAYS GLENN PAPE VICE PRESIDENT OF FINANCIALRELATED SERVICES FOR AYCO CORP A SUBSIDIARY OF AMERICAN EXPRESS CO INVESTING EXPERTS SAY EMPLOYEES SHOULD KEEP AT LEAST HALF THEIR MONEY IN STOCK FUNDS BECAUSE EVEN THOUGH THE RETURNS WILL FLUCTUATE OVER THE LONG HAUL STOCKS HAVE RETURNED 10 ANNUALLY YOU CAN REDUCE RISK BY DIVERSIFYING AMONG DIFFERENT TYPES OF STOCK FUNDS SAYS MR PAPE FUNDS THAT ARE LESS VOLATILE THAN PURE GROWTHSTOCK FUNDS INCLUDE EQUITYINCOME GROWTHANDINCOME AND BALANCED FUNDS THE INCOME THESE TYPES OF FUNDS EARN FROM DIVIDENDS AND BONDS CUSHIONS THE FUNDS' RETURNS WHEN STOCK PRICES FALL SCOTT HART A 32YEAROLD BRANDS MANAGER FOR HERSHEY FOODS IN HERSHEY PA USED TO SPLIT HIS MONEY BETWEEN THE FIXED ACCOUNT AND A STOCK INDEX THERE WAS NO SCIENCE TO IT HE SAYS BUT AFTER HE LEARNED ABOUT INFLATION RISK AND CONSIDERING THE DECADES HE HAS UNTIL RETIREMENT HE SHIFTED HIS ALLOCATION SO THAT NOW 80 OF HIS MONEY IS IN STOCK FUNDS HE REDUCES RISK BY DIVERSIFYING EVEN IF YOU'RE APPROACHING RETIREMENT YOU SHOULD STILL PUT AT LEAST A QUARTER OF YOUR MONEY IN STOCKS EXPERTS SAY UNLESS YOU CONFOUND THE ACTUARIAL ODDS BY GETTING HIT BY A TRUCK YOU'VE GOT DECADES AHEAD OF YOU ART FETELL 50 A TECHNICAL SERVICE PROJECT MANAGER FOR DUPONT IN WILMINGTON DEL USED TO KEEP 100 OF HIS MONEY IN FIXED ACCOUNTS I DIDN'T WANT TO RISK MY RETIREMENT MONEY HE SAYS BUT TWO YEARS AGO AFTER TAKING AN AYCO FINANCIALPLANNING COURSE OFFERED BY HIS EMPLOYER HE SHIFTED MONEY INTO THE INTERNATIONAL AND LARGESTOCK FUNDS HE ALSO COORDINATED HIS RETIREMENTPLAN ALLOCATIONS WITH HIS OUTSIDE SAVINGS I CAN'T GET SMALL STOCKS IN THE 401K SO I INVEST IN A SMALLSTOCK FUND WITH MY OUTSIDE PORTFOLIO HE SAYS REGARDLESS OF AGE DON'T PILE MONEY IN THE COMPANYSTOCK FUND THIS ISN'T THE PLACE TO DEMONSTRATE LOYALTY TO YOUR EMPLOYER DIVERSIFYING YOUR HOLDINGS IS MORE IMPORTANT SAYS MR PAPE HE SAYS THIS IS EVEN MORE IMPORTANT FOR EMPLOYEES WITH 401K PLANS WHOSE EMPLOYERS MATCH CONTRIBUTIONS IN COMPANY STOCK NEXT CONSIDER FEES INVESTMENTS IN RETIREMENT PLANS LIKE ANY OTHER INVESTMENT HAVE ANNUAL FEES EMPLOYEES AT CORPORATIONS TYPICALLY HAVE A 401K OR PROFITSHARING PLAN WITH MUTUALFUND INVESTMENTS MUTUAL FUNDS HAVE ANNUAL EXPENSES WHICH TEND TO BE AROUND 1 FOR STOCK FUNDS EMPLOYEES MAY WANT TO CHECK IF THEIR FUND EXPENSES ARE HIGHER OR LOWER THAN AVERAGE YOUR PLAN ADMINISTRATOR SHOULD SUPPLY THIS INFORMATION IN CONTRAST TEACHERS HOSPITAL WORKERS AND EMPLOYEES OF NONPROFIT ORGANIZATIONS WHO HAVE 403B PLANS USUALLY HAVE BOTH MUTUAL FUNDS AND VARIABLE ANNUITIES VARIABLE ANNUITIES ARE LIKE FAMILIES OF MUTUAL FUNDS WRAPPED INTO AN INSURANCE COMPANY CONTRACT THE INVESTMENT FUNDS IN VARIABLE ANNUITIES HAVE INVESTMENT EXPENSES THAT ARE SIMILAR TO THOSE IN MUTUAL FUNDS BUT VARIABLE ANNUITIES ALSO CHARGE ANNUAL INSURANCECOMPANY EXPENSES THAT AVERAGE 127 A YEAR AND CAN GO AS HIGH AS 165 A YEAR WHEN ADDED TO THE FUND EXPENSES THE TOTAL ANNUAL FEES CAN REACH 2 TO NEARLY 3 IN SOME PRODUCTS WHICH IS QUITE A DRAG ON THE RETURN WHILE THIS ADDED COST IS SOMETHING MANY INVESTORS DON'T MIND PAYING ON INVESTMENTS OUTSIDE RETIREMENT PLANS SINCE THEY GET TAXDEFERRAL FROM THE ANNUITY IT DOESN'T MAKE MUCH SENSE TO PAY AN EXTRA 125 A YEAR FOR TAXDEFERRAL THAT YOU ALREADY GET SAYS MARY DEAN A FEEONLY FINANCIAL PLANNER IN SAN DIEGO A NOTABLE EXCEPTION IS COLLEGE RETIREMENT EQUITY FUND PART OF THE GIANT TIAACREF WHICH HAS ZERO INSURANCECOMPANY EXPENSES AND FUND EXPENSES THAT ARE HALF THOSE OF OTHER VARIABLE ANNUITIES ANOTHER DRAWBACK TO VARIABLE ANNUITIES IS SURRENDER CHARGES THESE ARE TYPICALLY 7 IN THE FIRST YEAR AND TAPER LOWER OVER SEVEN YEARS OR SO SURRENDER CHARGES TEND TO BE HIGHER IN VARIABLE ANNUITIES IN RETIREMENT PLANS THAN IN ANNUITIES SOLD TO INDIVIDUALS SAYS JENNIFER STRICKLAND EDITOR OF VARIABLE ANNUITY EVEN SO MOST EMPLOYEES DON'T REALIZE THEY HAVE SURRENDER CHARGES NOR DO THEY REALIZE THAT THE SURRENDERPERIOD CLOCK MAY START ANEW ON EACH CONTRIBUTION IN ADDITION MANY VARIABLE ANNUITIES CHARGE A PENALTY IF YOU MOVE MONEY OUT OF THE FIXED ACCOUNT WHETHER YOU SHIFT IT INTO THE VARIABLE FUNDS OR TO ANOTHER INVESTMENT VARIABLE ANNUITIES DO HAVE OTHER FEATURES THAT MAY BE APPEALING TO PEOPLE NEARING RETIREMENT SAYS MS DEAN BUT IF THAT'S THE CASE SHE ADVISES KEEPING THE MONEY IN MUTUAL FUNDS AND SWITCHING INTO AN ANNUITY THEN WHILE YOU'RE COMPARING FEES TAKE A LOOK AT THE PERFORMANCE OF THE AVAILABLE FUNDS IN THE RETIREMENT PLAN WHETHER THEY ARE MUTUAL FUNDS OR FUNDS IN A VARIABLE ANNUITY AND COMPARE THEM WITH THE AVERAGE RETURNS FOR THEIR INVESTMENT CATEGORIES PLAN ADMINISTRATORS SHOULD SUPPLY THIS OR YOU CAN GET A PERFORMANCE REPORT ON MUTUAL FUNDS AND A REPORT ON VARIABLE ANNUITIES FROM MORNINGSTAR INC 8008765005 FOR 15 EACH SEE RELATED ARTICLE EMPLOYEES CAN AVOID HIGHER BENEFIT COSTS WSJ NOV 12 1993 9311120036 931112 TELECOMMUNICATIONS INC IS SEEKING TO LINK UP WITH ANOTHER MOVIE STUDIO BY LAURA LANDRO AND RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL TELECOMMUNICATIONS INC IS SEEKING TO LINK UP WITH ANOTHER MOVIE STUDIO AND HAS APPROACHED THE PARENT COMPANIES OF UNIVERSAL STUDIOS 20TH CENTURY FOX AND COLUMBIA PICTURES ACCORDING TO PEOPLE FAMILIAR WITH TCI'S PLANS THE CABLE TV GIANT'S CHIEF EXECUTIVE JOHN MALONE IS EXPLORING EITHER PURCHASING A LARGE STAKE IN A MOVIE STUDIO OR FORMING A JOINT VENTURE THAT COULD INCLUDE COMBINING A STUDIO'S MOVIE AND TV PRODUCTION ASSETS WITH SOME OF TCI'S PROGRAMMING AND CABLE ASSETS TCI HAS AGREED TO BE ACQUIRED BY REGIONAL TELEPHONE GIANT BELL ATLANTIC INC IN A STOCK DEAL WITH A VALUE THAT COULD EXCEED 20 BILLION TCI IS PURSUING ITS STUDIO TALKS WITH BELL ATLANTIC'S BLESSING THE PEOPLE SAID A BELL ATLANTIC SPOKESMAN STOPPED SHORT OF A FULL ENDORSEMENT HOWEVER WE'RE JUST BEGINNING TO TALK BROAD STRATEGIES WITH TCI HE SAID WHAT MALONE'S DOING IS STILL MALONE'S BUSINESS UNTIL OUR DEAL IS CLOSED A TCI SPOKESMAN IN DENVER SAID THE COMPANY MEETS ALL THE TIME WITH HEADS OF MOVIE STUDIOS AND OTHER COMPANIES AND DOESN'T COMMENT ON THE NATURE OF THOSE TALKS BUT HE SAID IT IS SHEER SPECULATION TO ASSUME THE TALKS ARE A CLEAR SIGNAL OF OUR BUSINESS OBJECTIVE TCI'S MAIN FOCUS HE ADDED IS TO COMPLETE ITS MERGER WITH BELL ATLANTIC AND GET ON WITH THE FUTURE OF THE TV BUSINESS BUT THE FUTURE OF THE TV BUSINESS DEPENDS IN LARGE PART ON CONTROLLING ACCESS TO A PROVIDER OF CONTENT MOVIES AND TV SHOWS AS COMPANIES SCRAMBLE FOR POSITION IN THE CURRENT WAVE OF MEDIA MERGERS WHILE REGIONAL TELEPHONE COMPANIES ARE GOBBLING UP CABLE SYSTEMS BOTH PHONE AND CABLE CONCERNS ARE SEEKING TO BUY OR INVEST IN CONTENT PROVIDERS LIKE PARAMOUNT TO SUPPLY PROGRAMMING FOR THEIR ELECTRONIC SUPERHIGHWAYS BELL ATLANTIC AND TCI COMBINED HAVE POWERFUL DISTRIBUTION AND PROGRAM NETWORKS BUT NO SIGNIFICANT PRODUCTION OF PROGRAMS OR FILMED ENTERTAINMENT LIBRARIES A LINK WITH BELL ATLANTICTCI MEANWHILE COULD PROVIDE NEW PRODUCTION CAPITAL FOR MOVIE STUDIOS AND ENSURE ACCESS TO DISTRIBUTION IN THE CASE OF THE JAPANESEOWNED STUDIOS A DOWNTURN IN THEIR PARENT COMPANIES' CONSUMER ELECTRONICS BUSINESSES HAS HURT PROFITS AND MADE IT MORE DIFFICULT TO KEEP PUMPING CAPITAL INTO THEIR HOLLYWOOD OPERATIONS ON TUESDAY A MANAGING DIRECTOR OF MATSUSHITA ELECTRIC INDUSTRIAL CO OWNER OF UNIVERSAL STUDIOS PARENT MCA INC MET WITH TCI'S MR MALONE A MATSUSHITA SPOKESMAN IN TOKYO SAID THAT THE POSSIBILITY OF TCI BUYING A 50 STAKE IN MCA WAS NOT DISCUSSED AND SAID THAT OUR POSITION IS THAT WE HAVE NO INTENTION OF SELLING ANY PART OF MCA HE DECLINED TO SAY WHAT WAS DISCUSSED AT THE MEETING OR WHETHER MATSUSHITA WOULD CONSIDER ANOTHER ARRANGEMENT SUCH AS A JOINT VENTURE MARIO GABELLI A MONEY MANAGER WHOSE FUNDS OWN CABLE AND ENTERTAINMENT STOCKS SAID THAT A PURCHASE OF A STAKE IN ONE OF THE JAPANESEOWNED STUDIOS SUCH AS UNIVERSAL COULD BE AN ASTUTE POLITICAL MOVE FOR TCI AND BELL ATLANTIC THAT'S BECAUSE IT WOULD MEAN RETURNING SOME OWNERSHIP OF COPYRIGHTED MOVIE PRODUCT TO US HANDS MR GABELLI CALLED IT MR MALONE'S ET PHONE HOME STRATEGY A REFERENCE TO THE UNIVERSAL MOVIE THAT IS THE SECONDBIGGEST BOX OFFICE HIT IN HISTORY PEOPLE FAMILIAR WITH MATSUSHITA SAY THAT COMPANY IS DIVIDED INTERNALLY OVER WHAT TO DO WITH ITS MCA STAKE MCA DECLINED TO COMMENT BUT PEOPLE CLOSE TO THE COMPANY SAID MCA EXECUTIVES WERE UPSET THAT THEY WEREN'T INVOLVED IN THE DISCUSSIONS WITH TCI WHICH MCA VIEWED AS A RENEGADE MOVE BY MATSUSHITA MANAGING DIRECTOR KEIYA TOYONAGA RELATIONS BETWEEN MCA AND ITS PARENT SOMETIMES HAVE BEEN FRAYED IN RECENT YEARS MATSUSHITA FOR EXAMPLE IGNORED MCA'S RECOMMENDATION TO BUY VIRGIN RECORDS IN 1991 MUCH OF MATSUSHITA'S TOP MANAGEMENT HAS CHANGED SINCE THE ACQUISITION IN 1990 ADDING TO THE INSTABILITY TCI'S MR MALONE HAS ALSO APPROACHED SONY CORP PARENT OF COLUMBIA PICTURES AND NEWS CORP PARENT OF FOX PEOPLE FAMILIAR WITH THE SITUATION SAID SONY DECLINED TO COMMENT ALTHOUGH COMPANY OFFICIALS ACKNOWLEDGED THAT TCI AND OTHERS HAVE CONTACTED IT ABOUT POSSIBLE INVESTMENTS SONY USA CHAIRMAN MICHAEL P SCHULHOF ALSO SAID RECENTLY THAT THE COMPANY IS INTERESTED IN LINKING UP WITH A TELECOMMUNICATIONS OR CABLE CONCERN IN SOME WAY AND WOULD ENTERTAIN PROPOSALS NEWS CORP CHAIRMAN RUPERT MURDOCH ALREADY HAS A NUMBER OF CLOSE BUSINESS TIES WITH TCI AND IS CLOSE TO MR MALONE A NEWS CORP SPOKESMAN SAID MR MALONE IS SOMEBODY WE KNOW AND WORK WITH BUT THE COMPANY NEVER COMMENTS ON POTENTIAL DEALS TCI HELPED TO BAIL OUT NEWS CORP BY INVESTING IN ITS PREFERRED STOCK DURING NEWS CORP'S MASSIVE DEBT RESTRUCTURING TWO YEARS AGO TCI ALSO HELPED TO GET THE FOX NETWORK OFF THE GROUND BY CARRYING IT ON CABLE SYSTEMS AT NEWS CORP'S ANNUAL MEETING RECENTLY MR MURDOCH SAID THE COMPANY COULD ISSUE NEW COMMON SHARES TO MAKE NEW AND STRATEGIC ALLIANCES WITH TELECOMMUNICATIONS AND OTHER COMPANIES TCI HAS ALSO HAD EXTENSIVE DEALINGS WITH BOTH MCA AND ITS PARENT THE CABLE COMPANY HAS TALKED OFTEN WITH MATSUSHITA ABOUT THE ELECTRONICS COMPANY SUPPLYING HARDWARE THAT TCI WILL REQUIRE FOR THE FUTURE AND RECENTLY MCA WAS THE FIRST MAJOR STUDIO TO LICENSE ITS MOTION PICTURES FOR SUBSCRIPTION TV TO THE ENCORE CHANNEL PARTLY OWNED BY TCI IN A CLIMATE IN WHICH PARAMOUNT COULD SELL FOR AS MUCH AS 10 BILLION MCA EXECUTIVES ARE SAID TO BELIEVE THEIR ASSETS INCLUDING EXTENSIVE PUBLISHING MUSIC AND THEME PARK INTERESTS AS WELL AS A SIGNIFICANT FILM AND TV LIBRARY ARE WORTH MORE THAN THE SLIGHTLY MORE THAN 6 BILLION MATSUSHITA PAID FOR THEM SONY PAID A MUCH HIGHER MULTIPLE FOR COLUMBIA THAN MATSUSHITA DID FOR MCA THOUGH SONY HAS INDICATED IT IS RECEPTIVE TO OVERTURES OBSERVERS BELIEVE BOTH MCA AND MATSUSHITA WOULD SERIOUSLY CONSIDER CERTAIN OFFERS A POSSIBLE PROTOTYPE FOR ANY SUCH TRANSACTION WOULD BE TIME WARNER INC WHICH SOLD STAKES IN ITS ENTERTAINMENT ASSETS TO ITOCHU CORP TOSHIBA CORP AND U S WEST INC DAVID P HAMILTON CONTRIBUTED TO THIS ARTICLE 9311120035 931112 LAW CLINTON SEEKS REDEFINITION OF CHILD PORNOGRAPHY WASHINGTON PRESIDENT CLINTON TOLD THE JUSTICE DEPARTMENT TO PREPARE LEGISLATION THAT WOULD EXPAND THE LEGAL DEFINITION OF CHILD PORNOGRAPHY THE ACTION COMES AFTER THE SUPREME COURT OVERTURNED THE CHILDPORNOGRAPHY CONVICTION OF A PENNSYLVANIA MAN FOR OWNING SEXUALLY SUGGESTIVE VIDEOTAPES IN THAT CASE THE DEPARTMENT REVERSING A BUSH ADMINISTRATION POSITION HAD ARGUED THE LAW CURRENTLY ALLOWS CHARGES ONLY WHEN THE MATERIALS IN QUESTION CONTAIN A VISIBLE DEPICTION OF A CHILD'S GENITALS AND SHOW A CHILD LASCIVIOUSLY ENGAGING IN SEXUAL CONDUCT THE VIDEOTAPES IN THE PENNSYLVANIA CASE SHOWED GIRLS WHO WERE CLOTHED AND WEREN'T ENGAGING IN SEXUAL ACTIVITIES THOUGH THEY WERE IN SEXUALLY SUGGESTIVE POSES AFTER THE SUPREME COURT DECISION THE SENATE UNANIMOUSLY PASSED A RESOLUTION CRITICIZING THE DEPARTMENT FOR CHANGING THE GOVERNMENT'S POSITION IN THE CASE AT THE SAME TIME REPUBLICANS VOWED TO MAKE A POLITICAL ISSUE OUT OF THE CASE YESTERDAY IN A LETTER TO ATTORNEY GENERAL JANET RENO THE PRESIDENT SAID LEGISLATION SHOULD BE SUBMITTED TO ENSURE THAT FEDERAL LAW REACHES ALL FORMS OF CHILD PORNOGRAPHY 9311120034 931112 WHO'S NEWS BOSTON TECHNOLOGY INC BOSTON TECHNOLOGY INC WAKEFIELD MASS RICHARD K SNELLING 61 YEARS OLD WAS NAMED A DIRECTOR OF THIS MAKER OF VOICEPROCESSING SYSTEMS FOR TELEPHONE COMPANIES EXPANDING THE BOARD TO SIX MEMBERS MR SNELLING IS CHAIRMAN OF THE GEORGIA CENTER FOR ADVANCED TELECOMMUNICATIONS TECHNOLOGY IN ATLANTA 9311120033 931112 THE AMERICAS ARGENTINA PRIVATIZES OIL AND VITALIZES STOCK MARKET BY DAVID C MULFORD ON AUG 31 THE FORMER STATEOWNED OIL COMPANY OF ARGENTINA BECAME THE WORLD'S 11TH LARGEST PRIVATELY OWNED INTEGRATED OIL AND GAS COMPANY THE PRIVATIZATION OF YPF SA WAS ACCOMPLISHED IN A SINGLE TWOPART OPERATION THE LARGESTEVER INITIAL PUBLIC OFFERING OF A SINGLE COMPANY'S SHARES TO HAVE BEEN DISTRIBUTED INTERNATIONALLY 304 BILLION OR 45 OF THE COMPANY AND AN EXCHANGE OFFER IN ARGENTINA OF AN ADDITIONAL 13 OF YPF'S SHARES FOR GOVERNMENT BONDS ISSUED TO PENSIONERS THIS WAS AN EXTRAORDINARY POLITICAL AND ECONOMIC ACHIEVEMENT THREE YEARS BEFORE THE COUNTRY HAD JUST PASSED ITS PEAK OF 200 MONTHLY HYPERINFLATION IT HAD HAD A FISCAL DEFICIT EQUIVALENT TO 22 OF ITS GROSS DOMESTIC PRODUCT NO GROWTH NO ACCESS TO INTERNATIONAL CAPITAL MARKETS COULD NOT SERVICE ITS HUGE BURDEN OF EXTERNAL DEBT AND WAS AT THE NADIR OF A DECADES' LONG ECONOMIC DECLINE NOW IN FULL PUBLIC VIEW ARGENTINA HAD CONCLUDED ONE OF THE WORLD'S LARGEST AND MOST SUCCESSFUL INTERNATIONAL EQUITY OFFERINGS AND THE LARGEST FINANCIAL TRANSACTION EVER TO HAVE EMERGED FROM LATIN AMERICA THE ULTIMATE SUCCESS OF PRIVATIZATION DEPENDS ON WINNING AND KEEPING THE CONFIDENCE OF THE WORLD'S INVESTORS WITH SOUND GOVERNMENT POLICIES IN THIS REGARD ARGENTINA'S STABILIZATION AND STRUCTURAL ADJUSTMENT PROGRAM WAS AND CONTINUES TO BE AN OVERWHELMING SUCCESS INFLATION HAS BEEN CUT TO SINGLEDIGIT LEVELS SOLID GDP GROWTH CONTINUES FISCAL AND MONETARY DISCIPLINE HAVE BEEN ESTABLISHED WIDESPREAD DEREGULATION IS UNDER WAY IN ADDITION RESTRUCTURING OF THE COUNTRY'S EXTERNAL DEBT UNDER THE BRADY PLAN WAS COMPLETED IN APRIL SIGNIFICANT TRADE LIBERALIZATION HAS TAKEN PLACE AND STABLE EMPLOYMENT LEVELS HAVE BEEN ACHIEVED THIS WAS THE FOUNDATION ON WHICH PRESIDENT CARLOS MENEM AND ECONOMY MINISTER DOMINGO CAVALLO BUILT THEIR PRIVATIZATION STRATEGY PERHAPS THE MOST CRUCIAL ASPECT OF YPF'S FLOTATION WAS THE PRIOR TRANSFORMATION OF THE COMPANY FROM A POLITICALLY MANAGED GOVERNMENTOWNED MONOPOLY INTO AN INTERNATIONALLY COMPETITIVE INTEGRATED OIL AND GAS COMPANY THE SPEED WITH WHICH CS FIRST BOSTON AND MERRILL LYNCH AS JOINT GLOBAL COORDINATORS CONCLUDED THE OFFERING ABOUT THREE MONTHS FROM THEIR APPOINTMENT TO THE CLOSING OF THE TRANSACTION MASKS THE LENGTHIER CONSULTATION AND RESTRUCTURING THAT WAS A NECESSARY PRECURSOR TO ITS LAUNCH THE PREPARATION OF YPF ITSELF WAS CONDUCTED BY YPF PRESIDENT JOSE ESTENSSORO AN INDUSTRY VETERAN HIRED FROM THE PRIVATE SECTOR EXPRESSLY TO OVERSEE THE PROCESS IT ENTAILED A REFOCUSING OF YPF LIKE OTHER MAJOR INTERNATIONAL OIL COMPANIES ON ITS EXISTING PRODUCTION CAPACITY ASSETS AND ACTIVITIES CONSIDERED NONSTRATEGIC AND WITHOUT SIGNIFICANT PROFIT POTENTIAL WERE SOLD OR IDENTIFIED FOR SALE OTHER ASSETS DEEMED NONSTRATEGIC BUT OF GREATER PROFIT POTENTIAL WERE COMMITTED TO JOINT VENTURES OR OTHER CONTRACTUAL ARRANGEMENTS WITH THIRD PARTIES AN INTERNAL REORGANIZATION OF YPF INTO TWO DISTINCT BUSINESS UNITS LED TO A SLASHING OF THE YPF WORK FORCE TO ABOUT 10000 EMPLOYEES FROM 57000 IN TWO YEARS THESE UNITS WERE DESIGNED SO THAT MANAGEMENT COULD EVALUATE OPERATIONS IN A MANNER APPROPRIATE TO A DEREGULATED ENVIRONMENT NATURALLY OVER THIS PERIOD YPF'S MARKET SHARE SHRANK SUBSTANTIALLY FOREMOST AMONG THE POLITICAL CONSIDERATIONS THAT SHAPED THE OBJECTIVE OF PRIVATIZING THE COMPANY IN A SINGLE OPERATION WAS THE GOVERNMENT'S COMMITMENT TO MAKE MAXIMUM CASH PAYMENTS TO ARGENTINA'S LONGSUFFERING PENSIONERS IN LIEU OF UNPAID PENSIONS MORE THAN ONE MILLION ARGENTINE PENSIONERS HELD SOCALLED BOCONES THESE BONDS OF LONG MATURITY WERE ACCUMULATING BUT NOT PAYING CURRENT INTEREST AND THEY TRADED AT SEVERELY DEPRESSED PRICES IN THE SECONDARY MARKETS SO FIRMLY WAS THE GOVERNMENT COMMITTED TO PAYING THE PENSIONERS THAT IT AGREED TO INCORPORATE THAT INTENTION AS A LEGAL OBLIGATION IN THE LEGISLATION AUTHORIZING YPF'S SALE FULL PRIVATIZATION WAS REALIZED THROUGH THE CREATIVE DESIGN OF THE EXCHANGE OFFER ADDRESSED TO ARGENTINE PENSIONERS IT AIMED TO PROVIDE ADDED FINANCIAL BENEFITS TO PENSIONERS NOT COMPENSATED WITH THE 3 BILLION CASH PROCEEDS RAISED THROUGH THE INITIAL PUBLIC OFFERING AS A BACK UP AND TO MAKE CERTAIN THAT A MAJORITY OF YPF SHARES WERE SOLD PROFESSIONAL INVESTORS WHO HAD ACQUIRED BOCONES IN THE SECONDARY MARKET WERE ALLOWED TO EXCHANGE THEM FOR STOCK NOT TAKEN UP BY PENSIONERS ANOTHER CONSIDERATION THAT WEIGHED IN FAVOR OF PRIVATIZING THROUGH A SINGLE OFFER WAS THE VERY REAL PROBLEM NOW FACING MANY COUNTRIES THAT FOLLOW THE MORE STANDARD PROCEDURE OF A SMALL INITIAL PUBLIC OFFERING THE SALE OF ADDITIONAL TRANCHES OF STOCK CAN PROVE MORE DIFFICULT FOR GOVERNMENT OFFICIALS TO MANAGE THESE OFFICIALS MAY FEEL THEY LACK ENOUGH EXPERIENCE OR POLITICAL LEEWAY TO DECIDE THE RIGHT TIMING PRICING OR OTHER DETAILS OF SUBSEQUENT SALES ADDITIONALLY A SMALL INITIAL PUBLIC OFFERING MAY NOT BE PERCEIVED BY INTERNATIONAL INVESTORS AS A TRUE PRIVATIZATION HARMING BOTH THE COMPANY'S CURRENT AND FUTURE MARKET VALUE FOR IF THE COMPANY IS PROFITABLE THERE IS ALWAYS A TEMPTATION FOR THE GOVERNMENT TO KEEP CONTROL OR AT LEAST A STRONG INFLUENCE OVER IT FINALLY THE GOVERNMENT WANTED TO MAXIMIZE THE SHARES REMAINING IN ARGENTINE HANDS IT ALSO WANTED TO PREVENT A MAJOR FOREIGN OIL COMPANY OR ARGENTINE CORPORATE GROUP FROM BUYING UP A STRATEGIC STAKE AND DOMINATING YPF THESE VARIOUS OBJECTIVES CREATED NO MEAN CHALLENGE PARTICULARLY WITH SUCH A LARGE INITIAL OFFERING AND WITH SUCH A SIZABLE PORTION TO BE PLACED IN A RELATIVELY SMALL LOCAL MARKET LACKING THE INSTITUTIONAL BASE COMMON IN MORE DEVELOPED STOCK MARKETS ULTIMATELY A 7 BILLION COMPANY WAS PRIVATIZED WITH THE GOVERNMENT'S INTEREST REDUCED TO 20 THE GOVERNMENT'S COMMITMENT TO PENSIONERS WAS HONORED WITH THOSE STILL HOLDING BOCONES ENJOYING A MARKET VALUE FOR THEIR BONDS ALMOST TWICE THAT OF A FEW MONTHS AGO ARGENTINE SHAREHOLDERS ACCOUNTED FOR 65 TO 70 OF THE SHAREHOLDER BASE AND ARGENTINA NOW HAS A LARGE INTERNATIONAL BODY OF INVESTORS WHO FOLLOW THE COUNTRY AND ITS EQUITIES THE MANY POTENTIALLY DIVISIVE POLITICAL ISSUES THAT STILL FACE PARTIALLY PRIVATIZED COMPANIES IN OTHER COUNTRIES ARE NOW FIRMLY BEHIND ARGENTINA YPF CAN NOW FOCUS FOR ITS OWN BENEFIT ITS SHAREHOLDERS' AND ARGENTINA'S ON THE CHALLENGE OF BEING A WORLD CLASS OIL COMPANY PERHAPS THE FIRST OF SEVERAL IN LATIN AMERICA FOR GOVERNMENTS DEVELOPING OR REVITALIZING MARKET ECONOMIES YPF OFFERS NOT JUST ADVICE ON HOW TO SELL STOCK BUT A CONSTRUCTIVE EXAMPLE OF HOW TO MAXIMIZE THE SOCIOECONOMIC REWARDS FROM PRIVATIZATION FOR THE BENEFIT OF SOCIETY AT LARGE MR MULFORD UNDERSECRETARY AND ASSISTANT SECRETARY OF THE US TREASURY FOR INTERNATIONAL AFFAIRS 198492 IS VICE CHAIRMAN OF CS FIRST BOSTON AND CHAIRMAN OF CS FIRST BOSTON LTD 9311120032 931112 THERE ARE INFORMATION HIGHWAYS AND THEN THERE'S CALLIN KARAOKE BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES DOES BELLOWING THE THEME SONG OF THE BRADY BUNCH ON A PHONEIN TELEVISION SHOW QUALIFY AS INTERACTIVE STATION KMETTV HERE THINKS SO INTERACTIVITY IS THE BUZZWORD OF THE DAY A TRENDY TERM CONJURING UP IMAGES OF GLASSYEYED TV VIEWERS AND COMPUTER USERS CHOOSING MOVIES AND ORDERING PIZZAS BY REMOTE CONTROL IN THE 500CHANNEL WORLD OF THE FUTURE SUCH MEDIA GIANTS AS PARAMOUNT COMMUNICATIONS INC HAVE JUMPED ON THE BANDWAGON WITH AMBITIOUS PLANS TO DEVELOP MOVIELINKED VIDEO GAMES AND VIRTUALREALITY ENTERTAINMENT CENTERS PARAMOUNT TELECOMMUNICATIONS INC AND BARRY DILLER MOVE OVER KMET A MULTILINGUAL STATION IN HOLLYWOOD SAYS THE FUTURE IS NOW IT TOUTS ITS NEW CALLIN SINGALONG PROGRAM TO AIR ON CHANNEL 38 FIVE DAYS A WEEK STARTING MONDAY AS THE FIRST INTERACTIVE BROADCAST SHOW IN THE LOS ANGELES AREA BUT IS IT VIEWERS WHO WANT TO TAKE PART IN KMET'S INTERACTIVE KARAOKE SHOW CALL A LOCAL PHONE NUMBER TO REQUEST SONGS IN SPANISH ENGLISH CHINESE OR KOREAN YES THEY DO HAVE THE BRADY BUNCH SONG ONCE SELECTED CALLERS SING INTO THEIR HOME PHONES LIVE ON THE AIR TO ACCOMPANYING VIDEOS THUS THE TWOWAY INTERACTIVE METHOD IS ACHIEVED KMET EXPLAINS IN A NEWS RELEASE ADDS CHARLES LOHR THE STATION'S GENERAL MANAGER INTERACTIVITY DOESN'T NEED AN INFORMATION HIGHWAY TO WORK ON BROADCAST TELEVISION IF THAT'S SO WHERE DO HOMESHOPPING LARRY KING OR EVEN KMET'S CURRENT TALK SHOW HISPANIC COMMUNITY NETWORK FIT IN KMET'S PRESS MANAGER SAYS THE NEW INTERACTIVITY STEMS FROM VIEWERS SINGING ALONG WITH WORDS ON THE SCREEN SO THEY'LL BE INTERACTING ALONG WITH THE VISUAL IMAGE BEYOND THAT SHE CONCEDES IT'S PRETTY MUCH JUST SINGING INTO THE PHONE TO SOME PUNDITS OF THE EMERGING INDUSTRY PHONEIN KARAOKE DOESN'T COUNT AS INTERACTIVE I SUPPOSE PUTTING IN AN OFFKEY RENDITION OF MY WAY' MIGHT QUALIFY FOR INTERACTIVITY BUT NOT IN MY BOOK SAYS NICK DEMARTINO DIRECTOR OF ADVANCEDTECHNOLOGY PROGRAMS AT THE AMERICAN FILM INSTITUTE FOR ANDREW KESSLER A SAN FRANCISCO ANALYST FOR UNTERBERG HARRIS TRUE INTERACTIVITY MEANS I TOUCH A BUTTON AND THE VIDEO CHANGES ON THE TV SET THAT'S THE REAL MARKET EVERYTHING ELSE IS JUST PLAYING AROUND 9311120031 931112 REVIEW & OUTLOOK EDITORIAL LABOR AT THE OK CORRAL DETERMINED TO KILL THE NORTH AMERICAN FREE TRADE AGREEMENT THE UNIONS WILL BE SPENDING THE WEEKEND TRYING TO ROUND UP UNDECIDED HOUSE MEMBERS TO JOIN THEM IN NEXT WEDNESDAY'S VOTE WHICH LABOR IS BUILDING INTO THE GUNFIGHT AT THE OK CORRAL OUR ADVICE TO THE UNDECIDED INNOCENTS DON'T DO IT THE OK CORRAL WAS A BLOODBATH BUT WHEN THE DUST SETTLED IN TOMBSTONE THE MEMBERS OF THE CLANTON FAMILY WERE DEAD LABOR PROFESSES TO BE WEARING THE WHITE HAT IN THIS FEUD BUT THE FACT IS THAT THE PRESIDENT ALWAYS GETS TO PLAY WYATT EARP IT'S NOT HARD TO SEE WHAT IS DRIVING THE LABOR MOVEMENT TOWARD THIS EXTRAORDINARY CONFRONTATION WITH A DEMOCRATIC PRESIDENT LIKE THE WILD AND WOOLLY DAYS OF THE OLD WEST BIG LABOR'S DAYS OF POWER ARE FADING AND THEY AREN'T TOO HAPPY ABOUT IT THE FACT IS THAT JOHN L LEWIS WON'T BE RIDING INTO WASHINGTON TO SINGLEHANDEDLY DEFEAT NAFTA TODAY ONLY ABOUT 11 OF PRIVATESECTOR WORKERS ARE ORGANIZED THE NUMBERS FOR PUBLICSECTOR UNIONS ARE BETTER BECAUSE THE SERVICES THEY PROVIDE DON'T FACE MARKETPLACE COMPETITION BUT THE OVERALL OUTLOOK FOR THE UNIONS IS BLEAK AT LEAST IN THEIR PRESENT INCARNATION THE GROWING EVIDENCE SUGGESTS THAT THE DAYS OF BLOCVOTING SOLIDARITY ARE PASSING FROM VIEW THIS IS REFLECTED IN THE INCREASING INDEPENDENCE SHOWN BY SOME DEMOCRATS IN CONGRESS IS WEEK REPUBLICANS AND MODERATE NEW DEMOCRATS TEAMED TO DEFEAT AN EXTENSION OF UNEMPLOYMENT INSURANCE THAT WASN'T PAID FOR WITH SPENDING CUTS ELSEWHERE FRESHMEN DEMOCRATS AREN'T WILLING TO AUTOMATICALLY FOLLOW THE GUIDANCE OF THE UNIONS SAYS REP TIM PENNY A MINNESOTA DEMOCRAT UNION FAMILIES ARE ALSO FINDING THEIR WAY TO POLITICAL CONCLUSIONS THAT ARE AT ODDS WITH THE UNION LEADERSHIP'S POSITION EXIT POLLS IN THE RECENT ELECTIONS FOUND THAT 44 OF NEW JERSEY VOTERS WITH A UNION MEMBER AT HOME VOTED FOR PRONAFTA TAXCUTTER CHRISTIE WHITMAN FOR GOVERNOR IN NEW YORK CITY ONLY 50 OF VOTERS IN UNION HOUSEHOLDS VOTED FOR DEMOCRATIC MAYOR DAVID DINKINS SO ALTHOUGH UNION LEADERS CRUSADED FOR MR DINKINS HALF OF THEIR TROOPS REFUSED TO FOLLOW WHETHER IT'S BLUSTER OR DESPERATION THE ANTINAFTA UNION COALITION IS TRYING TO COUNTER THESE FORCES WITH THREATS OF SCORCHEDEARTH POLITICS UNION DUES ARE FUNDING A 3 MILLION AD CAMPAIGN AGAINST NAFTA THIS MONTH WILLIAM BYWATER PRESIDENT OF THE INTERNATIONAL UNION OF ELECTRICAL WORKERS IS WARNING DEMOCRATS WE WOULD PUT UP SOMEONE IN THE PRIMARY AGAINST THOSE WHO MAKE THE MISTAKE OF VOTING FOR NAFTA IF THEY SURVIVE THAT AND APPEAR VULNERABLE TO A REPUBLICAN CHALLENGE HE CLAIMS HE'LL STILL REFUSE TO HELP THEM REP ANNA ESHOO THE CALIFORNIA DEMOCRAT WHO REPRESENTS THE EXPORTORIENTED SILICON VALLEY SAYS THE PRESSURE IS BEYOND INTENSE THEY LAID DOWN THE GAUNTLET AND SAID ESSENTIALLY TO ME THIS IS TOTAL DIVORCE IT'S THIS VOTE YOU DON'T VOTE WITH US WE ARE NOT WITH YOU' YET WHEN PRESIDENT CLINTON TAKES THEM TO TASK FOR THEIR ROUGHSHOD MUSCLEBOUND TACTICS LABOR LEADERS SAID THEY WERE ONLY CONVEYING FACTS ABOUT NAFTA TO THE UNDECIDED MEMBERS THERE IS REASON TO BELIEVE SOME OF THIS OFFENSIVE IS BLUSTER THIS WEEK TWO MARYLAND DEMOCRATS WITH SOLID UNION VOTING RECORDS ANNOUNCED THEY WOULD BACK NAFTA BENJAMIN CARDIN AND STENY HOYER SAID THEY DIDN'T EXPECT TO BUCK THEIR UNION FRIENDS BUT NAFTA'S BENEFITS WERE CLEAR THE LABOR COMMUNITY FEELS PASSIONATELY ABOUT THIS ISSUE SAID MR HOYER CHAIRMAN OF THE HOUSE DEMOCRATIC CAUCUS HOWEVER THE GLOBAL ECONOMY IS A REALITY THAT WE CAN'T MAKE GO AWAY AFTER THE CARDINHOYER ENDORSEMENT OF NAFTA THE POLITICAL DIRECTOR OF MARYLAND'S AFLCIO SAID THE UNION WAS NOT A A ONEISSUE ORGANIZATION OTHER UNIONS HAVE PRIVATELY TOLD MEMBERS THEY WILL QUICKLY PUT NAFTA BEHIND THEM THREATENING TO BURN DOWN MEMBERS OF CONGRESS WHO VOTE FOR NAFTA WOULD HARDLY BE SMART POLITICS OR IN THE LONGTERM INTERESTS OF LABOR'S OWN MEMBERS THERE WILL BE BIGGER FISH TO FRY IN THE BATTLE OVER THE SHAPE OF THE HEALTH CARE SYSTEM BEYOND THIS ALL RECENT EXPERIENCE WITH VOTERS SUGGESTS THEY OPPOSE PROTECTIONIST POLITICIANS BY NOW NAFTA INCREDIBLY ENOUGH HAS SOMEHOW BECOME A HOUSEHOLD WORD HOUSE UNDECIDEDS SHOULD RECOGNIZE THAT JOINING LABOR AT THE OK CORRAL DOESN'T MAKE A LOT OF SENSE WHEN THE WHOLE WORLD IS WATCHING 9311120030 931112 SWEDEN'S CONSUMER PRICE INDEX STOCKHOLM SWEDEN'S CONSUMER PRICE INDEX ROSE 03 IN OCTOBER FROM SEPTEMBER AFTER A 09 INCREASE THE MONTH EARLIER THE NATIONAL STATISTICS AGENCY SCB SAID THE OCTOBER FIGURES BROUGHT THE YEARONYEAR INFLATION RATE TO 43 UP FROM 42 IN SEPTEMBER AND FROM 23 IN OCTOBER A YEAR EARLIER THE STATISTICS AGENCY ATTRIBUTED THE INCREASE TO HIGHER PRICES ON CLOTHES AND SHOES WHICH CONTRIBUTED A THIRD OF THE MONTHLY INCREASE HIGHER PRICES ON INTERNATIONAL TRAVEL AND RENTS ALSO FIGURED IN SAID SCB TO A CERTAIN EXTENT DECLINING PRICES ON GASOLINE OFFSET THE INCREASE SCB SAID 9311120029 931112 COMPUTER SCIENCES FORMS UNIT CAMBRIDGE MASS COMPUTER SCIENCES CORP SAID IT FORMED A RESEARCH AND ADVISORYSERVICES UNIT IN ITS COMMERCIAL CONSULTING BUSINESS THE CSC CONSULTING GROUP THE COMPANY SAID THE NEW CSC RESEARCH AND ADVISORY SERVICES UNIT WAS CREATED FROM THE CSC INDEX MANAGEMENT CONSULTING ORGANIZATION WHICH OPERATED A DOZEN BUSINESS AND TECHNOLOGY RESEARCH PROGRAMS THE COMPANY SAID RONALD P CHRISTMAN WAS APPOINTED PRESIDENT OF THE UNIT 9311120028 931112 ADVERTISING FURNITURE FIRMS TRY SHOW BIZ TO WOO PUBLIC BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL MOST PEOPLE BUY A NEW SOFA ONCE A DECADE THAT'S A FACT AND A FRUSTRATING REALITY FOR THE FURNITURE INDUSTRY JUST LIKE FORD AND CHRYSLER FURNITURE MAKERS BRING OUT NEW MODELS EVERY YEAR NOW AFTER YEARS OF INEPT MARKETING AND UNIMPRESSIVE SALES FURNITURE MARKETERS ARE BANDING TOGETHER TO TRY TO INSPIRE PEOPLE TO REDECORATE MORE OFTEN THE EFFORT BUILT AROUND A PLANNED WEEKLY TELEVISION SHOW PRODUCED BY THE HOME FURNISHINGS COUNCIL WILL BE NO EASY TASK IN 1992 US FURNITURESTORE SALES TOTALED ABOUT 335 BILLION UP A SCANT 38 SINCE 1989 ACCORDING TO COMMERCE DEPARTMENT FIGURES ENTICED IN THE 1980S BY VCRS AND CAMCORDERS SHOPPERS HAVE BEEN FOCUSING LESS ON FURNITURE IN 1992 THE COMMERCE DEPARTMENT SAYS CONSUMERS SPENT 074 OF THEIR DISPOSABLE INCOME ON FURNITURE DOWN FROM 091 IN 1980 ONE ENCOURAGING SIGN FOR FURNITURE MARKETERS ACCORDING TO THE LATEST COMMERCE DEPARTMENT FIGURES SALES ROSE 68 DURING THE FIRST NINE MONTHS OF 1993 CONSUMERS HAVE BEEN BLASE ABOUT FURNITURE IN PART BECAUSE FURNITURE MAKERS HAVE DONE LITTLE TO COURT THEM THE AUTO INDUSTRY HAD CONVINCED AMERICANS TO BUY 25000 CARS THAT THEY THROW AWAY EVERY THREE YEARS BUT THE FURNITURE INDUSTRY STILL SELLS BEDROOM SETS THAT PEOPLE PASS DOWN TO THEIR KIDS GROUSES LARRY SPANGLER VICE PRESIDENT OF ADVERTISING AT THOMASVILLE INDUSTRIES INC WHICH HAS BEEN RUNNING TELEVISION COMMERCIALS SINCE 1988 STUDIES BY THE CONSULTING FIRM AMERICA'S RESEARCH GROUP SHOW FOR INSTANCE THAT CONSUMERS REPLACE DINETTE SETS JUST ONCE EVERY 21 YEARS IN THE 1970S THEY BOUGHT DINETTES ONCE EVERY 12 TO 13 YEARS DONNA WARNER EDITOR IN CHIEF OF METROPOLITAN HOME MAGAZINE BELIEVES THAT EVEN THOUGH PEOPLE GROW TIRED OF STARING AT THEIR OLD DININGROOM SET THEY RESIST REPLACING IT BECAUSE THE OLD ONE STILL WORKS YOU CAN STILL SIT AT THE CHAIRS AND EAT AT THE TABLE FURTHERMORE SHE SAYS THERE'S NO EXCITEMENT GENERATED THROUGH ADVERTISING FROM THE FURNITURE INDUSTRY THOMASVILLE'S MR SPANGLER SAYS WE NEED TO SELL FURNITURE MORE ON AN EMOTIONAL LEVEL THAT SAYS LOOK THIS IS HOW PEOPLE LIVE IN THEIR FURNITURE' BUT MOST PEOPLE DON'T KNOW THE NAMES OF FURNITURE MAKERS EXCEPT FOR A HANDFUL OF BRANDS THAT ADVERTISE ON TELEVISION OR SUPPLY THEIR PRODUCTS AS PRIZES ON GAME SHOWS THE HOME FURNISHINGS COUNCIL ESTIMATES THAT THE ENTIRE INDUSTRY WHICH SHIPS SOME 18 BILLION OF FURNITURE ANNUALLY SPENDS NO MORE THAN 300 MILLION A YEAR ON ADVERTISING FOR AN INDUSTRY OF THIS SIZE THERE AREN'T ENOUGH STRONG BRAND NAMES TO DRIVE DEMAND SAYS LESTER CRAFT EDITOR OF FURNITURE TODAY A LEADING TRADE MAGAZINE LATELY HOWEVER A FEW OF THE BIGGEST BRANDS SUCH AS ETHAN ALLEN INTERIORS INC LAZBOY CHAIR CO THOMASVILLE AND IKEA HAVE ENLIVENED THEIR ADVERTISING BY SHOWING FAMILIES ENTERTAINING IN THEIR LIVING ROOMS AND DADS SNOOZING IN RECLINERSA BIG CHANGE FROM THE TRADITIONAL MARKETING APPROACH OF NEWSPAPER CIRCULARS DEPICTING STAID MODEL ROOMS OR LINEUPS OF EMPTY RECLINERS THE FASTGROWING SWEDENBASED RETAILER IKEA AB WHICH SPENDS 25 MILLION A YEAR ON ADVERTISING FOR ITS 12 US STORES HAS WON OVER YOUNG PROFESSIONALS BY MAKING HOME DECORATING SEEM EASIER AND MORE AFFORDABLE ONE OF IKEA'S COMMERCIALS SHOWS A HIP DIVORCEE MUSING ABOUT REBUILDING HER LIFE AND FIXING UP HER NEW APARTMENT WHILE SHE CANVASSES IKEA'S AISLES FOR TABLES AND CHAIRS SHE CAN PACK IN THE TRUNK OF HER CAR SUCH ADS HAVE MADE IKEA STAND FOR A SMARTER FRESHER WAY OF LIVING SAYS DONNY DEUTSCH CREATIVE DIRECTOR OF DEUTSCH/DWORIN IKEA'S AD AGENCY IN NEW YORK BY SHOWING HOW FURNITURE INTERACTS WITH PEOPLE'S LIVES YOU BUILD A BOND WITH THE CONSUMER YOU GET INSIDE THEIR SOULS AND MOTIVATE THEM TO GO SHOPPING THAT'S WHAT THE FURNITURE COUNCIL HOPES TO ACHIEVE WITH ITS TELEVISION SHOW CALLED HAVEN AND SLATED TO START NEXT SPRING THE HALFHOUR SYNDICATED SHOW WILL TRY TO ATTRACT VIEWERS OF SUCH PROGRAMS AS THIS OLD HOUSE USING A VARIETYSHOW FORMAT THE PROGRAM WILL AMONG OTHER THINGS CHALLENGE MEMBERS OF THE STUDIO AUDIENCE TO DECORATE A ROOM ON THE AIR THE HOST OF HAVEN WILL BE JOY PHILBIN WIFE OF TALKSHOW PERSONALITY REGIS PHILBIN AND THE SHOW WILL TAKE ITS CAMERAS INSIDE CONSUMERS' HOMES AND FURNITURE STORES PRODUCTS FEATURED ON THE SHOW WILL COME FROM THE 165 FURNITURE MAKERS AND 3500 RETAILERS WHO ARE MEMBERS OF THE HOME FURNISHINGS COUNCIL DURING EACH PROGRAM A TOLLFREE NUMBER WILL FLASH ACROSS THE SCREEN TO ENCOURAGE VIEWERS TO CALL IN AND LEARN MORE ABOUT PARTICULAR PIECES OF FURNITURE COUNCIL MEMBERS WILL ALSO BUY COMMERCIAL TIME ON THE SHOW AT A DISCOUNT RATE BUT WITH SUCH STRONG CONSUMER APATHY ABOUT FURNITURE SOME INDUSTRY EXPERTS ARE SKEPTICAL ABOUT THE SHOW'S APPEAL SO FAR THE INDUSTRY'S THREEYEAROLD HAVEN MAGAZINE DISTRIBUTED FREE THROUGH FURNITURE STORES AND FEATURING EXPENSIVELOOKING MODEL ROOMS HASN'T STIRRED MUCH CONSUMER ENTHUSIASM IF PEOPLE AREN'T ALREADY EXCITED ABOUT FURNITURE ARE THEY GOING TO SIT THERE AND WATCH A HALFHOUR PROGRAM ON FURNITURE ASKS BRITT BEEMER PRESIDENT OF AMERICA'S RESEARCH GROUP LAZBOY STILL HASN'T DECIDED HOW MUCH OF ITS 20 MILLION ANNUAL AD BUDGET WILL GO TO COMMERCIALS ON HAVEN SAYS JOHN CASE DIRECTOR OF MARKETING FOR LAZBOY FOR THE HAVEN' SHOW TO HAVE ANY VALIDITY WITH CONSUMERS IT NEEDS TO RELATE THE SHOW TO THE LOCAL DEALERS WHO ARE SELLING THE PRODUCTS BUT BOTH TELL CITY CHAIR CO AND FLEXSTEEL INDUSTRIES INC PLAN TO RUN THEIR FIRST TELEVISION COMMERCIALS ON HAVEN FURNITURE IS A FASHIONORIENTED PRODUCT WE HAVE SEASONS AND COLOR CHANGES WITHIN OUR PRODUCT LINES BUT MANY CONSUMERS DON'T KNOW THIS SAYS DOUGLAS FENN PRESIDENT OF TELL CITY CHAIR SINCE HAVEN WAS ANNOUNCED LAST MONTH AT THE INTERNATIONAL HOME FURNISHINGS MARKET IN HIGH POINT NC SABAN DOMESTIC DISTRIBUTION WHICH IS SYNDICATING THE SHOW SAYS IT HAS BOOKED SEVEN LOCAL STATIONS AND HOPES TO HAVE 120 MARKETS LINED UP WHEN THE SHOW IS LAUNCHED NEXT APRIL YOUNG & RUBICAM'S LONDON OFFICE GOT THE NOD FROM PEPSICO'S INTERNATIONAL FOODS GROUP TO PRODUCE ADS THAT WILL INTRODUCE DORITOS CHIPS IN THE UNITED KINGDOM Y&R HAS BEEN VYING FOR A EUROPEAN DORITOS ASSIGNMENT AGAINST OMNICOM GROUP'S BBDO SINCE SEPTEMBER BBDO IS THE AGENCY FOR DORITOS IN THE US AS WELL AS FOR PEPSICO'S PEPSICOLA SOFT DRINKS AND PIZZA HUT CHAIN Y&R IS THE AGENCY FOR DORITOS IN CANADA AND MEXICO AND ALSO HANDLES PEPSICO'S KFC FASTFOOD CHAIN A PEPSICO SPOKESMAN SAID THE COMPANY HAS BEEN IN DISCUSSIONS WITH THE TWO AGENCIES ABOUT A NUMBER OF PROJECTS WE HAVE ASKED YOUNG & RUBICAM TO FURTHER DEVELOP AN IDEA THAT CAME OUT OF THOSE DISCUSSIONS HE SAID SOME EXECUTIVES SAID THE ASSIGNMENT COULD GROW TO AN ESTIMATED 70 MILLION EUROPEWIDE ACCOUNT AS PEPSI EXPANDS DISTRIBUTION OF DORITOS TO OTHER COUNTRIES KMART CORP'S BUILDERS SQUARE HOMEIMPROVEMENT CHAIN MOVED ITS ESTIMATED 30 MILLION ACCOUNT FROM ROSS ROY COMMUNICATIONS THE MAIN KMART AGENCY AND AWARDED IT TO HOUSTON SHOP FOGARTY KLEIN & PARTNER THE SWITCH ENDS A REVIEW IN WHICH FIVE AGENCIES COMPETED FOR THE BUSINESS INCLUDING THE DETROIT OFFICE OF WPP GROUP'S J WALTER THOMPSON ADMARKETING OF LOS ANGELES ANDERSON ADVERTISING OF SAN ANTONIO TEXAS FINALISTS BLOCKBUSTER ENTERTAINMENT CORP NARROWED THE REVIEW OF ITS ESTIMATED 50 MILLION ACCOUNT TO THREE AGENCIES EXECUTIVES BELIEVE THEY ARE LEO BURNETT CHICAGO THE ST LOUIS OFFICE OF D'ARCY MASIUS BENTON BOWLES AND THE INCUMBENT BERNSTEINREIN OF KANSAS CITY MO FINAL PRESENTATIONS ARE SET FOR NEXT WEEK ELIMINATED IN THE SEARCH WERE INTERPUBLIC GROUP'S LINTAS AND HAL RINEY & PARTNERS SAN FRANCISCO ABSOLUT HOLIDAY FOR ITS ANNUAL HOLIDAY AD SPLASH ABSOLUT VODKA IS RUNNING A FOLDOUT PACKET OF FIVE HOLIDAY GREETING CARDS AND ENVELOPES IN THE DEC 13 ISSUE OF THE NEW YORKER OMNICOM GROUP'S TBWA ADVERTISING CREATED THE FOLKARTSTYLE INSERT ENTITLED ABSOLUT WISHES THE AD IS SET TO BE INCLUDED IN ALL ISSUES OF THE NEW YORKER WITH CIRCULATION OF 800000 PRODUCTION AND MEDIA COSTS WERE AOUT 1 MILLION ACCORDING TO GRAND METROPOLITAN'S CARILLON IMPORTERS LTD 9311120027 931112 SMALL STOCK FOCUS TECHNOLOGY STOCKS CONTINUE TO BENEFIT FROM GAINS BY SEMICONDUCTOR ISSUES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK TECHNOLOGY STOCKS DREW MORE BUYING PACING A MODEST GAIN AMONG SMALLCOMPANY ISSUES COMPUTERRELATED STOCKS FLEW HIGH AND SEMICONDUCTORS CONTINUED WEDNESDAY'S RALLY WHEN CHIP MAKERS JUMPED ON A STRONG OCTOBER BOOKTOBILL RATIO THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE OTHER MAJOR EXCHANGES ROSE 055 OR 021 TO END AT 25753 ITS FOURTH STRAIGHT GAIN NASDAQ STOCKS AS MEASURED BY THE NASDAQ COMPOSITE INDEX TACKED ON 248 POINTS OR 032 CLIMBING TO 77898 ITS FIFTH CONSECUTIVE ADVANCE GAINING NASDAQ STOCKS OUTNUMBERED RETREATERS 1571 TO 1352 ON NASDAQ NATIONAL MARKET VOLUME OF 269360570 SHARES UP FROM 255290000 SHARES WEDNESDAY TOTAL VOLUME WAS AT 317653687 SHARES UP FROM 303853700 SHARES WEDNESDAY MEANWHILE NEW YORK STOCK EXCHANGE ISSUES FINISHED LOWER WITH THE DOW JONES INDUSTRIAL AVERAGE FALLING MORE THAN A POINT BROADER INDEXES ALSO FELL IT'S THE SAME THING THAT WE'VE HAD FOR A LONG TIME SAID BARRY BERMAN HEAD OF EQUITY TRADING AT ROBERT W BAIRD & CO AS THE ECONOMY RECOVERS THERE'S GOING TO BE MORE LEVERAGE IN THE SMALL STOCKS HE SAID LARGER COMPANIES AREN'T SEEING THE SAME KIND OF GROWTH AS THEIR SMALLER COUSINS AMONG NETWORKING ISSUES NETMANAGE INC CAPERTON CALIF SURGED 3 1/8 TO 32 3/4 MADGE NV THE NETHERLANDS ADDED 1 TO 11 AND CHIPCOM CORP SOUTHBOROUGH MASS GAINED 1 5/8 TO 51 1/2 ARTEL COMMUNICATIONS CORP SAID CHIPCOM HAS SATISFACTORILY COMPLETED ITS DUEDILIGENCE REVIEW IN CONNECTION WITH THE MERGER AGREEMENT SIGNED BY THE TWO COMPANIES LAST MONTH ARTEL BASED IN HUDSON MASS INCHED UP 1/8 TO 3 1/4 AMONG CHIP MAKERS KLA INSTRUMENTS CORP SAN JOSE CALIF IMPROVED 1 1/2 TO 24 1/2 CYPRESS SEMICONDUCTOR CORP NYSE ALSO OF SAN JOSE CREPT UP 3/8 TO 12 7/8 AND CYRIX CORP RICHARDSON TEXAS INCREASED 5/8 TO 25 1/8 OTHER TECH STOCKS ALSO CLIMBED SYMTEK SYSTEMS INC OF SAN DIEGO FIRMED 3/4 TO 6 KULICKE & SOFFA INDUSTRIES INC BASED IN WILLOW GROVE PA CLIMBED 2 7/8 TO 22 5/8 AND BOCA RESEARCH INC BOCA RATON FLA ROSE 7/8 TO 7 7/8 THERMOTREX CORP AMEX ROSE 1 1/8 TO 16 1/8 THE SAN DIEGO TECHNOLOGY RESEARCH AND DEVELOPMENT FIRM SAID IT RECEIVED 12 MILLION FROM THE ARMY RESEARCH LABORATORY TO CONTINUE DEVELOPMENT OF ITS PASSIVE MICROWAVE CAMERA WHICH IS DESIGNED TO SEE THROUGH FOG CLOUDS AND SMOKE WEDCO TECHNOLOGY INC A BLOOMSBURY NJ PROVIDER OF PLASTICSINDUSTRY SERVICES AND RELATED MACHINERY JUMPED 2 TO 10 FOR THE FISCAL SECOND QUARTER THE COMPANY EARNED 22 CENTS A SHARE UP FROM 15 CENTS WEITEK CORP SUNNYVALE CALIF ADDED 7/8 TO 10 3/4 THE COMPANY SAID IT HAS LICENSED MPEG VIDEO COMPRESSION AND DECOMPRESSION TECHNOLOGY FROM XING TECHNOLOGY CORP FOR USE WITH WEITEK'S NEW VIDEO POWER DIGITAL VIDEOENHANCEMENT CHIP BUT SAPIENS INTERNATIONAL CORP CURACAO NETHERLANDS ANTILLES RELINQUISHED 3 1/4 TO 24 3/4 THE SOFTWARE COMPANY REPORTED A THIRDQUARTER LOSS OF SEVEN CENTS A SHARE ON A CHARGE COMPARED WITH EARNINGS OF 17 CENTS IN THE YEAREARLIER QUARTER SEVERAL SMALLER STOCKS GOT A LIFT FOLLOWING NEWS THAT PACIFIC TELESIS GROUP'S PACTEL CELLULAR'S WIRELESS DATA DIVISION HAS BEEN CONDUCTING A FIELD TRIAL OF CELLULAR DIGITAL PACKET DATA SERVICE FOR THREE MONTHS RETIX A SANTA MONICA CALIF COMPUTER NETWORKER JUMPED 2 1/8 TO 10 3/8 PACTEL SAID RETIX WILL PROVIDE THE NETWORK SWITCHING HARDWARE AND SOFTWARE FOR THE MOBILE DATA INTERMEDIATE SYSTEMS SEQUENT COMPUTER SYSTEMS INC BEAVERTON ORE WAS UP 3/8 TO 19 3/4 SEQUENT WILL SUPPLY UNIX SERVER PLATFORMS AND HARDWARE NASDAQ NATIONAL MARKET STOCKS THAT SET HIGHS FOR THE YEAR TO DATE TOTALED 97 WHILE 25 ISSUES SET LOWS ON THE BIG BOARD SENSORMATIC ELECTRONIC CORP FELL 4 1/2 TO 43 1/2 SIX MAJOR MUSIC DISTRIBUTORS REJECTED THE COMPANY'S ACOUSTOMAGNETIC ANTITHEFT DEVICE FOR VIDEO AND AUDIO TAPES SAYING IT DEGRADES THE SOUND OF CASSETTES RIVAL ANTITHEFT MANUFACTURER CHECKPOINT SYSTEM INC SAW ITS SHARES RISE 2 3/8 TO 12 7/8 9311120026 931112 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION GRUPO FINANCIERO SERFIN SA DE CV A GLOBAL OFFERING OF 65 MILLION AMERICAN DEPOSITARY SHARES VIA CS FIRST BOSTON CORP MORGAN STANLEY & CO AND SERFIN SECURITIES INC INTERPOOL INC AN OFFERING OF 70 MILLION OF CONVERTIBLE EXCHANGEABLE SUBORDINATED NOTES DUE 2018 VIA SMITH BARNEY SHEARSON INC AND COMANAGED BY FURMAN SELZ INC AND SBCI SWISS BANK CORP MACROCHEM CORP AN OFFERING OF 4260000 COMMON SHARES 1420000 CLASS A WARRANTS AND 1420000 CLASS AA WARRANTS MOBILEMEDIA CORP AN OFFERING OF 125 MILLION SENIOR SUBORDINATED DEFERRED COUPON NOTES DUE 2003 9311120025 931112 WHO'S NEWS FREEPORTMCMORAN INC FREEPORTMCMORAN INC NEW ORLEANS THREE EXECUTIVES WERE PROMOTED BY THIS SULPHUR AND OIL AND GAS CONCERN RICHARD H BLOCK 43 YEARS OLD FORMERLY A VICE PRESIDENT WAS NAMED A SENIOR VICE PRESIDENT HE REMAINS CHIEF OPERATIONAL DEPUTY THOMAS J EGAN 49 FORMERLY A VICE PRESIDENT WAS NAMED A SENIOR VICE PRESIDENT HE REMAINS SENIOR ADMINISTRATIVE DEPUTY W RUSSELL KING 44 ALSO NAMED A SENIOR VICE PRESIDENT WAS FORMERLY VICE PRESIDENT OF FEDERAL GOVERNMENT RELATIONS 9311120024 931112 TECHNOLOGY IBM CONSIDERS SALE OF FEDERAL DEFENSE UNIT OFFICIAL DOESN'T RULE OUT OTHER EFFORTS TO SHED PERIPHERAL OPERATIONS BY LAURIE HAYS AND JEFF COLE STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK INTERNATIONAL BUSINESS MACHINES CORP IS CONSIDERING SELLING ITS FEDERAL DEFENSE UNIT AS PART OF AN EMERGING STRATEGY TO SHED BUSINESSES THAT AREN'T RELATED TO ITS MAIN LINES OF OPERATION GERALD YORK CHIEF FINANCIAL OFFICER SAID IN AN INTERVIEW THAT IBM ALSO PLANS TO PULL OUT OF SEVERAL ALLIANCES IN WHICH TECHNOLOGY GOALS HAVE BEEN MET OR ARE NO LONGER CONSIDERED IMPORTANT HE ADDED THAT HE WOULDN'T RULE OUT OTHER EFFORTS TO SELL OFF UNITS THAT AREN'T INTERTWINED WITH IBM'S CORE BUSINESSES INDUSTRY EXECUTIVES SAID IBM HAS ESSENTIALLY PUT THE SUBSIDIARY FEDERAL SYSTEMS CO UP FOR AUCTION ENTERTAINING SEVERAL RIVAL OFFERS FROM SUCH DEFENSE CONTRACTORS AS HUGHES AIRCRAFT CO A UNIT OF GENERAL MOTORS CORP MR YORK SAID IBM'S WILLINGNESS TO WEIGH THE OFFERS ISN'T DUE TO A CASHFLOW PROBLEM BUT HE ADDED WE DO HAVE THE NEED TO EFFICIENTLY DEPLOY OUR ASSETS AND MAXIMIZE SHAREHOLDER VALUE THAT'S WHAT'S GOING ON HERE IBM SAID IT MIGHT SELL ALL OR PART OF THE BETHESDA MD UNIT WHICH HAS 11400 EMPLOYEES AND PRIMARILY SELLS CUSTOMIZED COMPUTER SYSTEMS TO THE DEPARTMENT OF DEFENSE FEDERAL SYSTEMS HAD A PROFIT OF 71 MILLION ON 22 BILLION IN REVENUE LAST YEAR AND COULD FETCH IN EXCESS OF 1 BILLION WHICH IBM WOULD USE TO PAY DOWN DEBT MR YORK SAID IBM'S INTEREST IN SELLING FEDERAL SYSTEMS WAS FIRST REPORTED BY THE WASHINGTON POST IBM EXECUTIVES MAINTAINED THAT A POTENTIAL SALE OF FEDERAL SYSTEMS WOULDN'T CONFLICT WITH IBM CHAIRMAN LOUIS V GERSTNER'S VOW TO KEEP THE AILING COMPUTER GIANT TOGETHER RATHER THAN BREAK IT UP INTO SMALLER AUTONOMOUS BUSINESSES AS HIS PREDECESSOR JOHN AKERS HAD PROPOSED STILL THE POSSIBLE SALE SHOWS IBM'S CONTINUING EFFORT TO FOCUS THE COMPANY LAST WEEK IBM SAID IT WOULD PLACE 2200 COMPUTER SERVICE TECHNICIANS IN A VENTURE WITH EASTMAN KODAK CORP BECAUSE THAT TOO IS A NICHE BUSINESS THE DWINDLING DEFENSE MARKET HAS BECOME AN INCREASINGLY DIFFICULT PLACE FOR COMPANIES SUCH AS IBM WHICH AREN'T SPECIALIZED FEDERAL CONTRACTORS TO COMPETE UNISYS CORP FOR EXAMPLE RECENTLY CONSOLIDATED ITS PARAMAX DEFENSE BUSINESS INTO ITS GENERAL FEDERAL SERVICES OPERATIONS BECAUSE OF POSTCOLD WAR CUTBACKS AS A RESULT BIDS FOR THE IBM UNIT MIGHT NOT MEET MR YORK'S EXPECTATIONS OF MORE THAN 1 BILLION EXPERTS WITHIN THE DEFENSE INDUSTRY SUGGEST THAT GIVEN THE IBM UNIT'S SAGGING RETURNS AND FLAT REVENUE ITS SELLING PRICE COULD ONLY RANGE FROM 500 MILLION TO 800 MILLION DEPENDING ON HOW IT IS SOLD AND TO WHOM NONETHELESS A NUMBER OF COMPANIES ARE LOOKING AT THE IBM UNIT HUGHES AIRCRAFT OFFICIALLY DECLINED TO COMMENT BUT A HUGHES EXECUTIVE FAMILIAR WITH IBM'S PLANS SAID HUGHES WAS AMONG THE COMPANIES SERIOUSLY STUDYING AN ACQUISITION HE ADDED I THINK IT'S GOING TO BE AN AUCTION MARTIN MARIETTA CORP OF BETHESDA AND LORAL CORP NEW YORK ARE ALSO LIKELY BIDDERS ONE ANALYST SAID YOU COULD PROBABLY START FROM ALLIEDSIGNAL AND WORK YOUR WAY DOWN THE ALPHABET AN IBM SPOKESMAN SAID THE COMPANY WOULDN'T SELL THE UNIT AT A LOSS AND TAKE A CHARGE WALL STREET WHICH HAS LONG ADVOCATED BREAKING UP IBM SO IT CAN FOCUS BETTER ON STRATEGIC BUSINESSES APPLAUDED THE MOVE ON FEDERAL SYSTEMS THE STOCK ROSE 2125 TO 52 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY SOME ANALYSTS SAID THEY'D LIKE TO SEE MORE SALES REVIVING THE ARGUMENT ABOUT WHETHER IBM COULD FUNCTION BETTER IN PIECES OR AS A WHOLE MR AKERS WAS PLANNING FOR A BREAKUP OF IBM BEFORE HE LEFT THE COMPANY EARLIER THIS YEAR I WOULD ARGUE THEY NEED TO DO MORE SAID CURT ROHRMAN WHO FOLLOWS IBM FOR CS FIRST BOSTON THEY SHOULD DECIDE WHAT THEIR GAME PLAN IS AND DO IT MR ROHRMAN SUGGESTS JETTISONING IBM'S MAINFRAME BUSINESS IN FAVOR OF CONCENTRATING ON DESKTOPS OR VICE VERSA EXPERTS HAVE LONG DISCUSSED THE POSSIBILITY THAT IBM WOULD SELL ITS PENNANT SYSTEMS WHICH MAKES LARGE PRINTERS IT SOLD ITS SMALLPRINTER AND TYPEWRITER DIVISION LEXMARK INC IN 1991 OTHER SPECULATIVE CANDIDATES FOR SALE HAVE INCLUDED IBM CREDIT CORP THE FINANCING DIVISION OR SYSTEMS STORAGE FORMERLY ADSTAR ITS MAINFRAMEDISK MANUFACTURING OPERATION MR YORK HOWEVER SAID HE WOULDN'T SELL IBM CREDIT CORP HE COULDN'T BE REACHED TO COMMENT ON THE OTHER POSSIBILITIES 9311120023 931112 UAL UNION GROUP MAKES NEW OFFER FOR MAJORITY STAKE BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO A UNION COALITION SAID IT MADE A NEW PROPOSAL TO ACQUIRE A SUBSTANTIAL MAJORITY INTEREST IN UAL CORP THE PARENT COMPANY OF UNITED AIRLINES THE COALITION MADE UP OF UNITED'S PILOTS AND MACHINISTS UNIONS WOULDN'T DISCLOSE THE VALUE OF ITS OFFER BUT THE UNION GROUP DID SAY THE OFFER CONSISTS OF CASH NOTES AND PREFERRED AND COMMON STOCK THE OFFER CONTEMPLATES A REORGANIZATION OF THE COMPANY OFFERING SIGNIFICANT WAGE CONCESSIONS THE GROUP SAID AND THE ABILITY TO COMPETE WITH LOWCOST CARRIERS ON SHORTHAUL ROUTES A SPOKESMAN FOR THE UNION GROUP WOULDN'T PROVIDE FURTHER DETAILS OF THE OFFER UAL SAID IT WILL REVIEW THE PROPOSAL AND RESPOND AS MAY BE APPROPRIATE AN INDIVIUAL INVOLVED IN THE NEGOTIATIONS SAID THE UNIONS WOULD RECEIVE A MAJORITY HOLDING OF NEWLY ISSUED COMMON STOCK IN THE REORGANIZED AIRLINE EXISTING UAL SHAREHOLDERS WOULD RECEIVE CASH PREFERRED STOCK NOTES AND A MINORITY PORTION OF THE NEW COMMON STOCK HE ALSO SAID THAT THE PROPOSAL INCLUDES AN AGREEMENT TO FORM A LOWCOST AIRLINE WITHIN AN AIRLINE USING WELL MORE THAN 100 AIRCRAFT THAT WOULD OPERATE SHORT FLIGHTS THE PROPOSAL OFFERS WORKRULE CHANGES THAT THE UNIONS BELIEVE ARE WORTH SEVERAL BILLION DOLLARS LAST WEEKEND THE UNION GROUP DELIVERED A SEPARATE PROPOSAL IN DRAFT FORM WHICH UAL CRITICIZED AS HAVING A NUMBER OF DEFICIENCIES IT PROPOSED SOME 35 BILLION IN WAGE BENEFIT AND WORKRULE CONCESSIONS OVER FIVE YEARS AS PARTIAL CONSIDERATION FOR A MAJORITY STAKE IN UAL BUT IT DIDN'T SPELL OUT HOW MUCH THE UNIONS WOULD PAY IN ADDITION TO THE CONCESSIONS THE UNION COALITION HAS BEEN RACING AGAINST TIME IF THE COMPANY AND ITS UNIONS DON'T REACH AN AGREEMENT ON THE CONCESSIONSFOREQUITY DEAL BY A DEADLINE TOMORROW UAL HAS SAID IT WILL HAVE TO COMPLETE THE PREVIOUSLY ANNOUNCED SALE OF MOST OF ITS CATERING OPERATIONS OPPOSED TO THE SALE OF THE SOCALLED FLIGHT KITCHENS WHICH EMPLOY SOME 5000 MEMBERS OF UNITED'S MACHINISTS UNION THE COALITION HAS HOPED TO REACH A DEAL IN TIME TO PROTECT THOSE JOBS THE UNION PRESSURED UAL'S BOARD TO ACT QUICKLY SAYING IT WILL WITHDRAW ITS PROPOSAL IF UAL PROCEEDS WITH THE KITCHEN SALE 9311120022 931112 LAWRENCE IS CHOSEN AS CHIEF EXECUTIVE AT LONDON EXCHANGE LONDON THE LONDON STOCK EXCHANGE APPOINTED MICHAEL LAWRENCE CHIEF EXECUTIVE AMID HOPES HE WILL SPUR THE EXCHANGE'S MODERNIZATION EFFORTS MR LAWRENCE WHO IS FINANCE DIRECTOR OF PRUDENTIAL CORP BRITAIN'S LARGEST INSURER IS EXPECTED TO TAKE UP HIS DUTIES AT THE EXCHANGE ON FEB 1 PRUDENTIAL CORP HAS NO CONNECTION WITH PRUDENTIAL INSURANCE CO OF AMERICA THE SELECTION OF THE 53YEAROLD MR LAWRENCE SEEMS LIKELY TO PUT AN END TO AN UNCOMFORTABLE TIME AT THE LONDON STOCK EXCHANGE EUROPE'S LARGEST FORMER CHIEF EXECUTIVE PETER RAWLINS RESIGNED MARCH 13 THE SAME DAY THE EXCHANGE PULLED THE PLUG ON A DECADELONG PROJECT TO CREATE AN AUTOMATED TRADING SYSTEM EXCHANGE CHAIRMAN SIR ANDREW HUGH SMITH HAS BEEN ACTING AS INTERIM CHIEF EXECUTIVE IT IS HOPED THAT MR LAWRENCE WHO WAS A PARTNER AT THE ACCOUNTING FIRM PRICE WATERHOUSE FROM 1978 TO 1987 WILL PICK UP THE PACE OF THE LONDON STOCK EXCHANGE'S EFFORTS TO STREAMLINE ITS STAFF AND RESPOND MORE DIRECTLY TO THE NEEDS OF INSTITUTIONAL INVESTORS PARTICULARLY IN THE AREA OF TRANSACTION COSTS AND LIQUIDITY SIR ANDREW SAID MR LAWRENCE'S EXPERIENCE AT PRUDENTIAL SHOULD BRING A WIDE PERSPECTIVE TO THE LEADERSHIP OF THE EXCHANGE BOTH FROM AN IMPORTANT SECTOR OF THE FINANCIAL SERVICES INDUSTRY AND A LARGE LISTED COMPANY SIR ANDREW IS EXPECTED TO KEEP HIS POST FOR ANOTHER YEAR OUTSIDE SOURCES NEVERTHELESS SAID A SEARCH FOR HIS SUCCESSOR IS WELL UNDER WAY DEVELOPMENT OF THE FAILED SETTLEMENT SYSTEM KNOWN AS TAURUS WAS ESTIMATED TO HAVE COST THE EXCHANGE AND PARTICIPATING FINANCIAL INSTITUTIONS 350 MILLION 517 MILLION MOST OF THE WORK WAS UNSALVAGEABLE THE EXCHANGE RECORDED A PRETAX LOSS OF 119 MILLION IN THE YEAR ENDED MARCH 31 COMPARED WITH A YEAREARLIER PRETAX PROFIT OF 15 MILLION THE LOSS WAS ATTRIBUTED TO DEVELOPMENT AND SUBSEQUENT ABANDONMENT OF TAURUS THE BANK OF ENGLAND HAS SINCE TAKEN OVER PRIMARY RESPONSIBILITY FOR THE CREATION OF AN ALTERNATIVE SETTLEMENT SYSTEM THE PROJECT DUBBED CREST IS BEING DESIGNED TO HANDLE PAPERLESS SETTLEMENT OF SHARES BEFORE THAT OCCURS THE STOCK EXCHANGE PLANS TO MOVE IN JULY TO A 10DAY ROLLING SETTLEMENT OF SHARE TRADING AN EXPECTED MAJOR IMPROVEMENT TO THE CURRENT SYSTEM OF 14DAY ACCOUNT PERIODS 9311120021 931112 THE EFFECT OF MINIMUM WAGE ON JOBS IS AN ISSUE THAT STIRS ENDLESS DEBATE BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL CONGRESS CREATED THE MINIMUM WAGE TOWARD THE END OF THE DEPRESSION TO ENSURE IT SAID A MINIMUM STANDARD OF LIVING NECESSARY FOR HEALTH EFFICIENCY AND GENERAL WELLBEING FOR WORKERS TODAY MANY LAWMAKERS AND ECONOMISTS SAY THE MINIMUM WAGE ENSURES A STANDARD OF LIVING THAT LOOKS MORE LIKE THIS JUNK FOOD AND BAD TEETH NO HEALTH INSURANCE AND DEPENDENCE ON WELFARE OR OTHER GOVERNMENT ASSISTANCE WHY SHOULD TAXPAYERS SUBSIDIZE THE LOW WAGES THAT COMPANIES PAY ASKS REP BERNARD SANDERS AN INDEPENDENT FROM VERMONT WHO HAS INTRODUCED A BILL TO RAISE THE FEDERAL MINIMUM TO 550 AN HOUR AND INDEX IT TO INFLATION IT'S A MORAL INSULT TO HEAR CEOS ON HUGE SALARIES TELL US THAT THEY CAN'T AFFORD TO PAY WORKERS A HALFWAY DECENT WAGE BUSINESS GROUPS HAVE A QUICK COMEBACK THAT RESTS ON A COMPASSIONATESOUNDING TWIST OF ITS OWN I'D RATHER SUBSIDIZE SOMEONE WHO'S WORKING THAN PRICE THEM OUT OF THE WORK FORCE AND SUBSIDIZE THEIR UNEMPLOYMENT SAYS CARLOS BONILLA CHIEF ECONOMIST AT THE EMPLOYMENT POLICIES INSTITUTE A RESEARCH GROUP FUNDED MAINLY BY THE RESTAURANT INDUSTRY RAISING THE MINIMUM WAGE WILL ONLY HURT THOSE PEOPLE WHO CAN LEAST AFFORD IT THE LOWSKILLED THIS ZEROSUM ARGUMENT HIGHER PAY MEANS FEWER JOBS HAS TRADITIONALLY BLUNTED CALLS TO RAISE THE MINIMUM WAGE WHICH WAS LAST INCREASED IN 1991 TO 425 AN HOUR FROM 380 BUT IN RECENT YEARS TWO THINGS HAVE CHANGED FIRST WITH THE MINIMUM WAGE FROZEN FROM 1981 TO 1990 ITS REAL VALUE HAS BEEN DEPRESSED BY INFLATION FALLING 22 FROM ITS AVERAGE WORTH IN THE 1970S AND SECOND RECENT STUDIES BY LIBERAL ECONOMISTS SUGGEST THAT A MODEST RISE IN THE MINIMUM MAY HELP EMPLOYERS BY REDUCING EMPLOYEE TURNOVER AND IN SOME CASES EVEN INCREASE EMPLOYMENT FOR INSTANCE BY TEMPTING WORKERS INTO A LABOR MARKET THEY MIGHT OTHERWISE AVOID AT WORST THESE REVISIONIST STUDIES SAY THE IMPACT ON JOBS IS NEGLIGIBLE PARTICULARLY GIVEN THE MINIMUM WAGE'S CURRENT LOW LEVEL AND IN FACT THE LEVEL OF THE MINIMUM WAGE ONLY INDIRECTLY AFFECTS MANY LOWWAGE WORKERS SOME OF THEM EARN LESS THAN 425 AN HOUR BECAUSE THEY ARE EXEMPTED WORKERS SUCH AS APPRENTICES AND SOME AGRICULTURAL AND DOMESTIC HELP OR ARE ILLEGALLY PAID LESS THAN THE LAW STIPULATES ON THE OTHER HAND SOME STATE LAWS SET A HIGHER MINIMUM THAN THE FEDERAL ONE NEW JERSEY'S IS 505 AN HOUR WILLIAM SPRIGGS A MINIMUMWAGE EXPERT AT THE ECONOMIC POLICY INSTITUTE A LIBERAL GROUP PARTLY BACKED BY UNION MONEY SAYS A HIGHER BASE PAY ALSO WOULD STIMULATE THE ECONOMY BY GIVING WORKERS MORE PURCHASING POWER AND BY GIVING EMPLOYERS AN INCENTIVE TO MODERNIZE IF YOU'RE PAYING MORE FOR WORKERS IT PAYS TO UPGRADE YOUR PRODUCTION PROCESS AND TRAIN PEOPLE HE SAYS IF YOU'RE PAYING 425 AN HOUR WHY BOTHER EMPLOYERS REGARD SUCH FORECASTS AS OVERLY ROSY UPGRADING PRODUCTION MAY INDEED CREATE HIGHERSKILLED HIGHERPAID JOBS THEY SAY BUT AT THE COST OF JOBS FOR LESSSKILLED WORKERS WHO MIGHT NO LONGER BE NEEDED OR MIGHT BE INCAPABLE OF OPERATING SOPHISTICATED EQUIPMENT IN ADDITION A RISE IN THE MINIMUM WAGE WOULD PROBABLY RIPPLE THROUGH THE WHOLE BOTTOM END OF THE PAY STRUCTURE FURTHER BURDENING EMPLOYERS WHO ALREADY MAY FACE HIGHER COSTS DUE TO PRESIDENT CLINTON'S HEALTHCARE PROPOSALS TAKEN TOGETHER SUCH CHANGES MIGHT DESTROY JOBS OR PUSH EVEN MORE PRODUCTION OVERSEAS AFTER ALL MEXICO'S MINIMUM WAGE IS ABOUT 55 CENTS AN HOUR AT SPAGHETTI WAREHOUSE INC A TEXASBASED RESTAURANT CHAIN THAT STARTS ITS KITCHEN STAFF AT THE MINIMUM WAGE LOUIS NEEB THE PRESIDENT SAYS PAYING HIGHER WAGES WOULD ENCOURAGE HIM TO MECHANIZE AND CENTRALIZE PRODUCTION A 5000 MEATBALLMAKING MACHINE COULD ELIMINATE SIX WORKERS IN EVERY RESTAURANT SAUCES MADE CENTRALLY AND REHEATED AT RESTAURANTS WOULD TRIM JOBS TOO ANOTHER BOOST TO BUSINESS'S ARGUMENT FOOD SERVICE THE LARGEST EMPLOYER OF MINIMUMWAGE WORKERS IS ONE OF THE FEW JOBGROWTH AREAS OF THE ECONOMY AND A SECTOR THAT INTRODUCES MANY TEENAGERS TO THE WORK FORCE AT A PAY LEVEL THAT MAKES EMPLOYERS WILLING TO HIRE THEM WE'RE CREATING ENTRYLEVEL JOBS SAYS MR BONILLA OF THE EMPLOYMENT POLICIES INSTITUTE HE ADDS THAT SUCH JOBS PROVIDE A FOOT ON A LADDER THAT MANY WORKERS EVENTUALLY ASCEND THEY DON'T HAVE THE WAGE PROFILE OF NEWLY MINTED NEUROSURGEONS HE SAYS BUT THEY DO MOVE UP SEE RELATED ARTICLE THE WORKING POOR MINIMUMWAGE JOBS GIVE MANY AMERICANS ONLY A MISERABLE LIFE IN RURAL VERMONT SOME GO WEEK TO WEEK HOPING NO MAJOR BILLS HIT THEM HUNTING BEAR FOR THE TABLE WSJ NOV 12 1993 9311120020 931112 SCANDINAVIAN AIRLINES TAKES AUSTERITY STEPS TO CUT COSTS BY 10 SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM GROPING FOR SOME INSURANCE IN CASE MERGER TALKS WITH THREE OTHER EUROPEAN AIRLINES FLOP SCANDINAVIAN AIRLINES SYSTEM UNVEILED A NEW ROUND OF AUSTERITY STEPS AIMED AT SLASHING COSTS 10 BY THE END OF NEXT YEAR THE COSTCUTTING PLAN RANGING FROM CANCELLATION OF UNPROFITABLE ROUTES AND SALE OF AIRCRAFT TO LAYOFFS AND SALE OF CERTAIN NONCORE BUSINESSES EMANATED FROM A SWEEPING REVIEW OF OPERATIONS ORDERED BY NEW CHIEF EXECUTIVE JAN REINAS MR REINAS PREDICTED THAT TRIMMING COSTS BY 25 BILLION SWEDISH KRONOR 304 MILLION ROUGHLY 10 OF THE AIRLINE DIVISION'S ANNUAL OPERATING COSTS WOULD LIFT SAS BACK INTO THE BLACK BY THE END OF NEXT YEAR ON WEDNESDAY THE HALF STATEOWNED FLAG CARRIER OF DENMARK NORWAY AND SWEDEN DISCLOSED IT TUMBLED TO A PRETAX LOSS OF 113 BILLION KRONOR 138 MILLION IN THIS YEAR'S FIRST NINE MONTHS FROM A YEAREARLIER PRETAX PROFIT OF 616 MILLION KRONOR 75 MILLION MR REINAS CLAIMED THAT DESPITE THAT LOSS SAS PROBABLY REMAINS IN BETTER SHAPE THAN MOST EUROPEAN AIRLINES THE AIRLINE DIVISION POSTED A SLIM 142 MILLION KRONOR OPERATING PROFIT IN THE FIRST NINE MONTHS ONE OF THE FEW EUROPEAN AIRLINES TO MAKE MONEY DURING THE PERIOD UNFORTUNATELY THAT OPERATING PROFIT WAS WIPED OUT BY BALLOONING FINANCIAL COSTSAND A HUGE ONETIME CHARGE REFLECTING UNREALIZED FOREIGNEXCHANGE LOSSES IN RECENT WEEKS SCANDINAVIAN MEDIA HAVE CLAIMED MR REINAS' COSTCUTTING PLANS WOULD ENTAIL MASSIVE LAYOFFS OF UP TO 3000 EMPLOYEES OR NEARLY 15 OF THE AIRLINE DIVISION'S PAYROLL MR REINAS ADMITTED THE COMING OVERHAUL WOULD INVOLVE SOME LAYOFFSBUT HE DECLINED TO GIVE A SPECIFIC NUMBER PENDING OUTCOME OF DETAILED STAFFING REVIEWS NOW IN PROGRESS AT INDIVIDUAL DIVISIONS WHILE COST REDUCTIONS PROMISE A SHORTTERM FIX MR REINAS INSISTED SAS NEEDED TO FIND A STRATEGIC PARTNER TO ENSURE LONGTERM SURVIVAL HE EMPHASIZED THE PROPOSED MERGER WITH KLM ROYAL DUTCH AIRLINES SWISSAIR AND AUSTRIAN AIRLINES INTO A NEW CARRIER CALLED ALCAZAR REMAINS SAS'S BEST OPTIONEND 9311120019 931112 BUSINESS BRIEF GAP'S NET ROSE 27 IN FISCAL 3RD QUARTER AMID LACKLUSTER SALES SAN FRANCISCO GAP INC'S INVENTORY CONTROL AND EMPHASIS ON HIGHERMARGIN FASHION APPAREL SENT FISCAL THIRDQUARTER PROFITS UP A BETTERTHANEXPECTED 27 DESPITE LACKLUSTER SALES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING GAP SHARES ROSE 325 OR 89 TO CLOSE AT 39625 GAP LEARNED TO KEEP LOW INVENTORIES THE HARD WAY LAST YEAR WHEN IT HAD TO TAKE BIG MARKDOWNS AS SHOPPERS CUT BACK ON SPENDING OR SWITCHED TO LOWERPRICED COMPETITORS THAT COPIED ITS BASIC JEANS AND TSHIRT STYLES IN THE LATEST QUARTER BETTER INVENTORY MANAGEMENT AMONG OTHER THINGS SUBSTANTIALLY REDUCED GAP'S MARKDOWNS SAID CHAIRMAN DONALD G FISHER GAP'S RECENT ATTEMPT TO DIVERSIFY ITS CLOTHING LINE APPARENTLY IS OFF TO A GOOD START SINCE THE SUMMER THE COMPANY HAS BEEN STOCKING MORE FEMININE TRENDY STYLES THE INCREASED EMPHASIS ON FASHION MERCHANDISE WHICH CAN BE SOLD AT HIGHER PRICES THAN GAP'S BASIC FARE HELPED RESULT IN IMPROVED MERCHANDISE MARGINS MR FISHER SAID SUCH A MARGIN IS THE DIFFERENCE BETWEEN THE COST OF GOODS AND THE GOODS SOLD LIKE OTHER APPAREL RETAILERS GAP'S SALES HAVE LAGGED THE INDUSTRY UNSEASONABLE WEATHER AND LOWER DISCRETIONARY INCOME HAS KEPT CONSUMERS FROM UPDATING THEIR WARDROBES ROBERT BUCHANAN AN ANALYST WITH ALEX BROWN & SONS NOTED THAT IN A TOUGH ENVIRONMENT IT MAKES MORE SENSE TO MAXIMIZE THE PROFIT MARGINS AS GAP HAS DONE THAN TO MAXIMIZE THE SALES FOR THE NINE MONTHS GAP'S PROFIT ROSE ABOUT 28 TO 149 MILLION OR 103 A SHARE FROM 145 MILLION OR 101 A SHARE A YEAR AGO SALES CLIMBED 10 TO 224 BILLION FROM 203 BILLION WHILE SAMESTORE SALES WERE FLAT 9311120018 931112 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 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 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 638 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 8 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 311 13 WEEKS 328 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 705 60 DAYS 713 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9311120017 931112 WHO'S NEWS BELL CANADA NAMES MCLENNAN TO SUCCEED KEARNEY IN TOP SPOT MONTREAL BELL CANADA NAMED JOHN T MCLENNAN AS PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDING ROBERT KEARNEY WHO WILL RETIRE DEC 31 MR MCLENNAN 48YEAROLD PRESIDENT OF THE COMPANY'S BELL ONTARIO DIVISION WILL TAKE THE HELM OF CANADA'S BIGGEST TELEPHONE COMPANY AT A PIVOTAL TIME MR KEARNEY IN SEPTEMBER ANNOUNCED THAT BELL WILL SLASH PERSONNEL AND CAPITAL SPENDING NEXT YEAR THE COMPANY SAYS THE MOVES ARE NECESSARY TO COPE WITH INTENSIFYING LONGDISTANCE COMPETITION AND REGULATORS' REFUSAL TO RAISE LOCAL TELEPHONE RATES JUST THIS WEEK MR KEARNEY TESTIFIED AT HEARINGS BY CANADA'S TELECOMMUNICATIONS COMMISSION ON THE COUNTRY'S FUTURE REGULATORY FRAMEWORK ARGUING FOR SWEEPING CHANGES THAT WOULD ENABLE TELEPHONE COMPANIES TO OFFER MORE SERVICES AT MARKETDETERMINED RATES MR KEARNEY 58 WILL CONTINUE AS A DIRECTOR OF BELL CANADA AND OTHER COMPANIES AFFILIATED WITH BELL'S PARENT BCE INC A MONTREAL TELECOMMUNICATIONS HOLDING COMPANY HE ALSO WILL SERVE AS CHAIRMAN OF BCE CANADIAN TELECOM GROUP A POST NOW HELD BY JVR CYR WHO WILL CONTINUE AS CHAIRMAN OF BELL CANADA IN HIS NEW ROLE MR KEARNEY WILL HELP COORDINATE STRATEGY AMONG BCE'S CANADIAN TELECOMMUNICATIONS BUSINESSES A BELL CANADA SPOKESMAN SAID THE SHUFFLE MARKS THE LATEST IN A SERIES OF EXECUTIVE MOVES WITHIN THE BCE GROUP OVER THE PAST YEAR OR SO MR MCLENNAN WAS NAMED TO HIS CURRENT POST IN JUNE AFTER SERVING AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF BCE MOBILE COMMUNICATIONS INC A PUBLICLY TRADED UNIT OF BCE THE BELL CANADA SPOKESMAN SAID THE LATEST CHANGES ARE PART OF BCE'S EFFORT TO POSITION KEY PLAYERS TO GUIDE THE GROUP'S RESPONSE TO A CHANGING MARKET AND REGULATORY ENVIRONMENT 9311120016 931112 KARSTADT PLANS TO BUY HERTIE A RIVAL RETAILER DEPARTMENTSTORE CHAINS DEFY CONSUMER TREND TOWARD SPECIALTY SHOPS BY CACILIE ROHWEDDER STAFF REPORTER OF THE WALL STREET JOURNAL KARSTADT AG GERMANY'S LARGEST DEPARTMENT STORE CHAIN SAID IT WILL ACQUIRE RIVAL HERTIE WAREN & KAUFHAUS GMBH MARKING A FURTHER STEP TOWARD CONSOLIDATION IN THAT COUNTRY'S RETAILING INDUSTRY FOLLOWING SEPARATE MEETINGS OF BOTH COMPANIES' SUPERVISORY BOARDS KARSTADT SAID IT WILL BUY ALL OF HERTIE'S SHARES TERMS OF THE TRANSACTION WEREN'T DISCLOSED BUT THEY ARE EXPECTED TO BE ANNOUNCED TODAY ANALYSTS SAID THE DEAL WHICH HAS BEEN EXPECTED FOR WEEKS COULD BE VALUED AT ABOUT 27 BILLION MARKS 16 BILLION THE COMBINED OPERATIONS WOULD HAVE ANNUAL SALES OF AROUND 28 BILLION MARKS BY ACQUIRING HERTIE KARSTADT IS LINKING ITS FATE TO THE FUTURE OF INNERCITY DEPARTMENT STORES AT A TIME WHEN GERMAN CONSUMERS SEEM TO FAVOR SPECIALTY STORES IN SUBURBAN LOCATIONS IN TRADING ON THE FRANKFURT STOCK EXCHANGE SHARES OF KARSTADT GERMANY'S BIGGEST RETAILER SLIPPED THREE MARKS 178 ON THURSDAY TO 613 MARKS A SHARE STILL ANALYSTS WELCOMED THE MOVE AS A STRATEGICALLY WISE DECISION THAT WILL ENABLE KARSTADT AND HERTIE TO COMBINE WAREHOUSING AND DISTRIBUTION SYSTEMS AND TRIM ADMINISTRATIVE COSTS FOR HERTIE A MARRIAGE TO KARSTADT PROMISES A BRIGHTER FUTURE HERTIE DRAWS 30 OF ITS SALES FROM ONLY SIX STORES THE COMPANY'S 16 OUTLETS IN BERLIN AMONG THEM ITS FLAGSHIP STORE KADEWE OR KAUFHAUS DES WESTENS HAVE RISEN IN IMPORTANCE SINCE UNIFICATION PLACED THEM IN THE CENTER OF GERMANY HOWEVER THE RETAILER'S OWNERSHIP STRUCTURE HAS MADE IT DIFFICULT FOR IT TO RAISE CAPITAL FOR MODERNIZATION AND EXPANSION OWNED ALMOST ENTIRELY BY TWO PRIVATE FOUNDATIONS HERTIE TRADITIONALLY HAS HAD TO EARN EVERY MARK IT INVESTED IN EXCHANGE FOR ITS SHARES HERTIE IS EXPECTED TO GET A LARGE STAKE IN KARSTADT MAKING IT THE LARGEST SHAREHOLDER IN THE ESSENBASED COMPANY THE STAKE IS EXPECTED TO COME FROM THE HOLDINGS OF COMMERZBANK AG AND DEUTSCHE BANK AG WHO EACH HAVE ABOUT A 25 STAKE IN KARSTADT HOWEVER ANALYSTS EXPECT THE TWO BANKS TO REDUCE THEIR STAKES TO ABOUT 10 THE REDUCTION WOULD ALLOW HERTIE TO ACQUIRE A 30 STAKE IN KARSTADT IN EXCHANGE FOR THE HERTIE'S STORES THE MERGER ALSO SOLVES HERTIE'S PROBLEM OF SIZE KARSTADT'S 206 BILLION MARKS IN SALES LAST YEAR DWARF HERTIE'S 67 BILLION MARKS HERTIE IS JUST TOO SMALL TO KEEP UP WITH THE BIG ONES SAID AN ANALYST WITH BAYERISCHE HYPOBANK AG IN MUNICH 9311120015 931112 MANUFACTURERS STAY UNSURE ON ECONOMY LATEST SURVEY SHOWS NEW YORK MANUFACTURERS REMAIN UNCERTAIN ABOUT THE ECONOMY CITING CONTINUED WORRIES ABOUT THE IMPACT OF HIGHER TAXES AND THE COSTS OF HEALTH CARE ACCORDING TO A NATIONAL SURVEY OF 1000 FIRMS BY DUN & BRADSTREET CORP THE SURVEY SAID MANUFACTURERS' OPTIMISM FOR THE NEXT THREE MONTHS IS AT ABOUT THE SAME LEVEL IT WAS PRIOR TO THE 1992 PRESIDENTIAL ELECTIONS THE SURVEY MEASURES EXPECTATIONS FOR INCREASES IN PRODUCTION NEW ORDERS INVENTORY LEVELS AND EXPORTS BUT DOUGLAS HANDLER AN ANALYST FOR D&B SAID THAT MANUFACTURERS ARE IN THE BEST SHAPE THEY'VE BEEN IN SINCE THE END OF THE 199091 RECESSION OVERALL HE SAID IMPROVED PRODUCTION BETTER INVENTORY MANAGEMENT AND THE LIKELIHOOD OF EXPORT GROWTH MAY LEAD TO STRONGER ECONOMIC CONDITIONS THAT MIGHT SURPRISE MANY MANUFACTURERS IN THE FOURTH QUARTER CONSTRUCTION COMPANIES REMAIN EQUALLY UNCERTAIN ABOUT THE NEAR TERM ACCORDING TO A D&B SURVEY OF 200 FIRMS ALSO RELEASED YESTERDAY DESPITE SIMILAR EVIDENCE OF IMPROVED CONDITIONS IN THE CONSTRUCTION SECTOR THAT SURVEY NOTED THAT WHILE EXPECTATIONS IN THE CONSTRUCTION SECTOR WERE DOWN THEY REMAIN SIGNIFICANTLY ABOVE CALENDAR 1992 LEVELS THE CONSTRUCTION SURVEY MEASURES ORDERS EMPLOYMENT AND PRICES FOR THE INDUSTRY NATIONWIDE ALTHOUGH CONSTRUCTION EXECUTIVES REMAIN CAUTIOUS ABOUT THEIR PROSPECTS THE SURVEY SAID THEY CONTINUE TO REPORT IMPROVING BUSINESS CONDITIONS THE SURVEY ATTRIBUTED A GROWTH IN ORDERS AND PRICES TO THE RECENT SPURT IN HOUSING STARTS AND EXISTINGHOME SALES EVEN WITH THIS UPSURGE HOWEVER THE SURVEY NOTED THAT EMPLOYMENT LEVELS ARE DOWN AT MOST FIRMS SUGGESTING THAT IMPROVED PROFIT MARGINS HAVEN'T BEEN ACCOMPANIED BY PAYROLL INCREASES 9311120014 931112 WHO'S NEWS CHAIRMAN PUBLISHER CLARK RESIGNS POSTS AT CANADA NEWSPAPER TORONTO THOMSON CORP'S NEWSPAPER UNIT SAID C DAVID CLARK DECIDED TO RESIGN AS CHAIRMAN AND PUBLISHER OF THOMSON'S FLAGSHIP NEWSPAPER THE GLOBE AND MAIL MR CLARK'S ABRUPT DEPARTURE SCARCELY A YEAR AFTER JOINING THE PAPER FROM THE CANADIAN UNIT OF CAMPBELL SOUP CO WHERE HE HAD SERVED AS CHIEF EXECUTIVE CAUSED A BUZZ IN CANADIAN MEDIA CIRCLES WHILE HIS RESIGNATION DOESN'T TAKE EFFECT UNTIL DEC 31 HE LEFT THE NEWSPAPER HOURS AFTER THE ANNOUNCEMENT WAS MADE IN A LETTER TO EMPLOYEES RICHARD HARRINGTON PRESIDENT OF THOMSON NEWSPAPERS CORP SAID THAT A SEARCH WILL BEGIN IMMEDIATELY FOR A NEW CHIEF EXECUTIVE IN THE MEANTIME WILLIAM GREENHALGH PRESIDENT AND GENERAL MANGER OF THE NEWSPAPER WILL ASSUME DAYTODAY OPERATING RESPONSIBILITIES WHILE ROY MEGARRY CHAIRMAN EMERITUS WILL RETURN TO HELP WITH A STRATEGIC PLAN INITIATED BY MR CLARK AND TO ADVISE A NEW CHIEF EXECUTIVE MR HARRINGTON'S LETTER SAID THAT WHILE MR CLARK WHO IS 54 YEARS OLD ENJOYED HIS STINT AT THE GLOBE AND MAIL HE DECIDED TO CONTINUE HIS BUSINESS CAREER ELSEWHERE THOMSON DIDN'T GIVE FURTHER DETAILS AND NEITHER MR CLARK NOR COMPANY EMPLOYEES WERE AVAILABLE FOR COMMENT MR CLARK'S DEPARTURE MAY BE LINKED TO THE GLOBE'S APPARENT FAILURE TO ACHIEVE CERTAIN FINANCIAL TARGETS THE NEWSPAPER HAD BEEN BUDGETED TO EARN 11 MILLION CANADIAN DOLLARS US84 MILLION BUT NOW ACCORDING TO INTERNAL DOCUMENTS SEES ONLY A C2 MILLION PROFIT FOR THE YEAR THOMSON ALSO HAD EXPECTED MR CLARK WHO HAS A TRACK RECORD AS AN EFFICIENT COSTCUTTER TO REDUCE OVERHEAD BUT ALTHOUGH HE BROUGHT IN EFFICIENCY EXPERTS TO STUDY NEWSROOM OPERATIONS MAJOR SAVINGS HAVE YET TO MATERIALIZE 9311120013 931112 FOREIGN EXCHANGE YEN HITS 4WEEK HIGH AGAINST DOLLAR BUT US CURRENCY MAKES GAINS ON MARK BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE YEN RESUMED ITS CLIMB AGAINST MOST MAJOR CURRENCIES REACHING A FOURWEEK HIGH AGAINST THE DOLLAR BUT THE DOLLAR HELD ITS OWN AGAINST THE MARK BOOSTED BY A RALLY IN NORTH AMERICAN TRADING LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16930 MARKS UP FROM 16885 MARKS LATE WEDNESDAY IN NEW YORK THE DOLLAR ALSO WAS CHANGING HANDS AT 10636 YEN DOWN FROM 10715 YEN STERLING WAS TRADING AT 14750 DOWN FROM 14775 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10645 YEN AND AT 16945 MARKS THE YEN RACKED UP IMPRESSIVE GAINS AGAINST THE AUSTRALIAN AND CANADIAN CURRENCIES TRADERS SAID THE YEN WAS THE MAIN BENEFICIARY AS INVESTORS SOLD OFF SOME OF THEIR HOLDINGS IN AUSTRALIAN AND CANADIAN ASSETS DURING ASIAN TRADING THAT MOVE IN TURN BUOYED THE JAPANESE CURRENCY AGAINST THE US DOLLAR LAUNCHING A TUG OF WAR BETWEEN BUYERS AND SELLERS AS THE DOLLAR SAGGED TO A KEY TECHNICAL LEVEL OF 107 YEN DOLLAR SELLERS EVENTUALLY PREVAILED DRIVING THE CURRENCY DECISIVELY LOWER UNTIL BUYING SUPPORT STEADIED IT AT 10640 YEN THE YEN'S HIGHEST LEVEL SINCE OCT 14 DEALERS SAID THE SALES OF AUSTRALIAN AND CANADIAN ASSETS WERE THE RESULT OF MANY FACTORS INCLUDING A REPORT THAT INVESTMENT BANK MORGAN STANLEY HAS ALTERED ITS MODEL STOCK PORTFOLIO TO EXCLUDE ASSETS FROM AUSTRALIA AND NEW ZEALAND ALSO SOME JAPANESE FUNDS WERE BELIEVED TO BE SELLING FOREIGN ASSETS TO COVER LOSSES FROM THE TOKYO STOCK MARKET'S RECENT SLIDE TRADERS ALSO NOTED THAT A RENEWED FOCUS ON JAPAN'S HUGE TRADE SURPLUS WITH THE US AND THE DEMAND FOR YEN THAT CREATES HELPED TO UNDERCUT THE DOLLAR WE'RE STARTING TO GET THIS SENSE CREEPING BACK INTO THE MARKET THAT PROGRESS ON THE TRADE FRONT IS NOT WHAT WE WOULD LIKE IT TO BE SAID RICHARD VULLO DIRECTOR OF FOREIGN EXCHANGE AT BANK OF MONTREAL IN NEW YORK BUT DESPITE THE DOLLAR'S SLIDE AGAINST THE YEN TRADERS REPORTED INTEREST TO BUY DOLLARS FOR MARKS ONCE THE DOLLAR DROPPED TO ABOUT 16870 MARKS AT THE START OF THE NEW YORK SESSION SENDING IT STEADILY HIGHER FOR THE REST OF THE DAY ANY MOVE DOWN TOWARD THE 168 MARKS AREA IS SPARKING COMMERCIAL BUYING MR VULLO SAID BUT TRADERS GENERALLY AGREED THAT GIVEN THE DOLLAR'S WEAKNESS AGAINST THE YEN AND THE CURRENCY'S INABILITY TO MOVE DECISIVELY ABOVE 170 MARKS LAST WEEK THE DOLLAR WILL HAVE TROUBLE GAINING MUCH MORE GROUND UNTIL SOME POSITIVE NEWS HITS THE MARKET TODAY'S SCHEDULED RELEASE OF US RETAIL SALES DATA FOR OCTOBER COULD PROVIDE THAT FRESH IMPETUS TRADERS SAID HOWEVER THEY WARNED THAT WITH MANY PLAYERS ALREADY EXPECTING A STRONG REPORT OF A RISE OF 1 OR MORE THE GREATER RISK FOR THE DOLLAR COULD BE TO THE DOWNSIDE IF THE REPORT IS AT ALL DISAPPOINTING WITH HOLIDAYS SLOWING TRADING IN THE US CANADA FRANCE AND BELGIUM YESTERDAY SOME OF THE MOST INTERESTING ACTION WAS TO BE FOUND IN EUROPEAN CROSS TRADING PARTICULARLY WITH THE LIRA AND MARK TRADERS NOTED THAT WITH A KEY BUDGET VOTE IN THE ITALIAN SENATE LAST NIGHT THE LIRA CAME UNDER SOME PRESSURE AGAINST THE MARK BOOSTING THE MARK CLOSE TO A KEY TECHNICAL LEVEL OF 980 LIRE TRADERS NOTED THAT WHILE THE 980 LIRE LEVEL HELD FIRM THE OUTLOOK FOR THE CURRENCY IS FAR FROM ROSY ALTHOUGH THE BUDGET WAS EVENTUALLY APPROVED BY THE ITALIAN SENATE MANY PLAYERS WORRY THAT WHEN THE BUDGET REACHES THE LOWER HOUSE IT COULD BECOME BURDENED BY PROPOSED AMENDMENTS AND EVENTUALLY FORCE A VOTE OF CONFIDENCE IN THE GOVERNMENT OF PRIME MINISTER CARLO AZEGLIO CIAMPI THERE'S A LOT OF POLITICAL UNCERTAINTY SAID SUSAN STEARNS SENIOR CORPORATE ADVISER AT HARRIS TRUST & SAVINGS BANK IN NEW YORK THE PROFILE AT LEAST FOR THE NEARTERM IS DEFINITELY FOR A WEAKER LIRA 9311120012 931112 INTERNATIONAL WORLD ECONOMY NOT ALL NAFTA FOES ARE PEROT FOLLOWERS BUT THEIR OPPOSITION RUNS JUST AS DEEP BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN BILL CLINTON SEEKS APPROVAL NEXT WEEK OF THE NORTH AMERICAN FREE TRADE AGREEMENT HE WON'T GET ANY HELP FROM CARDISS COLLINS THIS CONGRESSWOMAN FROM CHICAGO WILL CAST A FIRM NO VOTE WHEN THE FINAL TALLY IS TAKEN AT FIRST GLANCE MS COLLINS'S UNSWERVING OPPOSITION TO NAFTA SEEMS A BIT CONTRARY HER DISTRICT INCLUDES THE FAMED CHICAGO LOOP HOME TO MANY MAJOR COMPANIES AND FINANCIAL MARKETS THAT WANT NAFTA TO PASS A DOZEN CHIEF EXECUTIVES HAVE CALLED TO TRY TO CHANGE HER MIND HER CONGRESSIONAL CAREER WAS ONCE BEHOLDEN TO THE POLITICAL MACHINE OF THE LATE MAYOR RICHARD DALEY AND ONE OF HIS SONS WILLIAM DALEY IS MR CLINTON'S CHIEF ARMTWISTER AND CAJOLER ON THE NAFTA ISSUE HE TOO HAS BESEECHED MS COLLINS TO SWITCH HER VOTE WITHOUT SUCCESS BEYOND THAT HERS IS GENERALLY A SAFE VOTE FOR DEMOCRATIC CAUSES ESPECIALLY LIBERAL ONES AND MR CLINTON BACKS MANY PROGRAMS SHE LIKES BUT NOT THIS TIME A LOOK AT WHAT SUSTAINS MS COLLINS'S VIEW SHOWS HOW NAFTA COULD BE DEFEATED WEDNESDAY BY OPPONENTS WHO SHARE LITTLE ELSE WITH THE ILLMANNERED ROSS PEROT ITS SHRILLEST ENEMY IT ALSO SUGGESTS THAT MS COLLINS AS DO MANY OTHERS ON BOTH SIDES USES THE PLENTIFUL EVIDENCE IN A HIGHLY SELECTIVE WAY LIKE OTHERS SHE FOCUSES ON WHAT'S LOCAL AND IMMEDIATE NOT GLOBAL AND FORWARDLOOKING THIS TENDENCY LEAVES MAINSTREAM ECONOMISTS AND DIPLOMATS DEEPLY FRUSTRATED THEY BELIEVE DEFEAT WOULD BE A FOREIGN POLICY AND ECONOMIC DISASTER OF WORLDWIDE SIGNIFICANCE YET AVOIDABLE IF ONLY MORE ATTENTION WERE PAID TO THE FACTS AND LESS TO EMOTION THE INTERNATIONAL REPERCUSSIONS OF LOSING NAFTA WORRY PRESIDENT CLINTON IN PARTICULAR IT COULD DIVERT MEXICO FROM FREE MARKET ECONOMICS AND REVIVE ANTIYANKEE STRAINS IN ITS DOMESTIC POLITICS AND ALL LATIN AMERICA MIGHT DECIDE THE US ISN'T REALLY READY FOR THE CLOSER TRADE TIES THEY SEE AS BOLSTERING THEIR OWN REFORM EFFORTS BEYOND THAT DEFEAT WOULD BE SEEN WORLDWIDE AS US REJECTION OF FREER TRADE THAT WOULD FIRST HURT MR CLINTON NEXT WEEK AT THE SEATTLE SUMMIT OF ASIAN AND PACIFIC NATIONS WHERE HE HOPES TO NUDGE LEADERS TOWARD MORE OPEN ECONOMIC POLICIES THEN COME GLOBAL TRADE TALKS KNOWN AS THE URUGUAY ROUND THESE FACE A DEC 15 DEADLINE AND NAFTA'S DEFEAT WOULD MAKE IT HARDER FOR MR CLINTON TO PERSUADE OTHERS THAT THE US TRULY SEEKS ECONOMIC GROWTH THROUGH EXPANDED GLOBAL TRADE NONE OF WHICH IMPRESSES MS COLLINS IN ANY NOTICEABLE WAY COMMUTING EXECUTIVES WITH FANCY LOOP OFFICES DON'T KEEP HER IN CONGRESS TWOTHIRDS OF HER DISTRICT'S VOTERS ARE BLACKS WHO WORRY MORE ABOUT URBAN DECAY AND LAYOFFS THAN GLOBAL ECONOMICS UNEMPLOYMENT THERE EXCEEDS 12 AND SHE CONTENDS SOME 67000 CHICAGO JOBS HAVE BEEN MOVED TO MEXICO SINCE 1980 NAFTA WILL MAKE THINGS WORSE HURTING HER DISTRICT YET FAILING TO HELP MEXICANS WHO WORK UNDER TERRIBLE CONDITIONS SHE SAYS I MUST SAY THAT THE SINGLE MOST IMPORTANT FACTOR IN MY DECISION WAS MY EXPERIENCE IN VISITING WORKERS IN MEXICAN FACTORIES SHE EXPLAINS SHE DOESN'T BELIEVE NAFTA WILL INCREASE JOBS IN THE US BY TURNING MEXICANS INTO BIGTIME CONSUMERS SHE CONTENDS MOST US EXPORTS GO TO AMERICANOWNED FACTORIES AND INTO PRODUCTS SHIPPED RIGHT BACK ACROSS THE BORDER CITING A FIGURE GLEANED FROM THE INTERNATIONAL TRADE COMMISSION SHE SAYS MEXICANS LAST YEAR SPENT ONLY 25 APIECE OR 23 BILLION ON US CONSUMER GOODS TRUE BUT THIS OMITS OTHER THINGS THE ITC TOLD HER FOR ONE THIS TOTAL HAS RISEN 700 SINCE 1987 FOR ANOTHER ABOUT 70 OF MEXICO'S OTHER AND MUCH GREATER US IMPORTS HELP MAKE PRODUCTS THAT STAY THERE FURTHER THE SHARE OF MEXICAN IMPORTS GOING TO BORDER FACTORIES HAS DROPPED TO 21 FROM 32 OVER THE PAST FIVE YEARS AND ONLY 46 OF THESE ARE MAJORITYOWNED BY AMERICANS WITH 48 CONTROLLED BY MEXICANS AND 2 BY JAPANESE FINALLY THE ITC TOLD HER US SALES TO MEXICO HAVE MORE THAN TRIPLED SINCE 1987 TURNING A TRADE DEFICIT OF 572 BILLION INTO A 1992 SURPLUS OF 567 BILLION NO MATTER MS COLLINS WORRIES MORE ABOUT WHAT SHE SEES AND FEELS NOT WHAT THEORISTS SAY MIGHT HAPPEN THAT'S WHY THE TREATY WILL FAIL NEXT WEEK IF ENOUGH OTHERS AGREE WHEN SHE SAYS THIS NAFTA IS NOT WHAT IT IS CRACKED UP TO BE 9311120011 931112 REVIEW & OUTLOOK EDITORIAL THE ROLLINS STORM DEMOCRATS RANGING FROM AL SHARPTON TO GOVERNOR JIM FLORIO SAY THEY CAN NOW EXPLAIN HOW CHRISTIE WHITMAN WON LAST WEEK'S KEY RACE FOR NEW JERSEY GOVERNOR THEY CLAIM THE GOP IN EFFECT STOLE THE ELECTION BY CHANNELING 500000 TO BLACK MINISTERS SO THEY WOULDN'T ENDORSE MR FLORIO FROM THEIR PULPITS AND TO FLORIO CAMPAIGN WORKERS SO THEY WOULD STAY HOME WE SUPPOSE IT'S TOO MUCH TO EXPECT THAT THE DEMOCRATS WOULD PASS UP AN OPPORTUNITY TO TRY TO DELEGITIMIZE MRS WHITMAN'S VICTORY BUT AMID ALL THE PIOUS CRIES FOR JUSTICE DEPARTMENT INVESTIGATIONS MAYBE SOMEONE COULD EXPLAIN HOW THE DIRTYTRICK ACCUSATIONS ADD UP TO MRS WHITMAN'S 40000 VOTE MARGIN OR THE PERHAPS ANY INVESTIGATION OF MONEY AND URBAN VOTING SHOULD BE EXPANDED BEYOND THIS ELECTION ED ROLLINS MRS WHITMAN'S CAMPAIGN MANAGER SET OFF THE UPROAR WITH SOME BREAKFAST BOASTING TO BELTWAY REPORTERS MR ROLLINS HAS SINCE RETRACTED HIS REMARKS AND IN ANY EVENT NEW JERSEY POLS ARE DESCRIBING AS IMPLAUSIBLE HIS CLAIM TO HAVE MADE 500000 IN CASH DONATIONS WITHOUT BEING DETECTED THE IMPLICATION THAT MRS WHITMAN SOMEHOW DIDN'T REALLY WIN IS WEAK MR FLORIO'S TOTAL VOTE IN URBAN AREAS WAS ONLY ABOUT 20000 VOTES BELOW HIS 1989 SHOWING AS THE NEW YORK TIMES ALSO NOTED YESTERDAY HE LOST BY 40000 VOTES MICHAEL BARONE THE COAUTHOR OF THE RESPECTED ALMANAC OF AMERICAN POLITICS ESTIMATES THAT 194000 BLACKS VOTED IN NEW JERSEY GIVEN MRS WHITMAN'S BLACK SUPPORT HE CALCULATES THAT MR FLORIO WOULD HAVE HAD TO INCREASE BLACK TURNOUT BY 40 TO BEAT HER THAT'S A REAL STRETCH HE SAYS IN FACT WE SUSPECT THE BACKLASH HAS A LOT TO DO WITH THE TRENDLINE OF MRS WHITMAN'S VOTE TOTALS AMONG MINORITY VOTERS SOME OF THE GROUND BENEATH THE DEMOCRATIC ESTABLISHMENT IS GETTING SOFT EXIT POLLS FOUND THAT 25 OF BLACKS VOTED FOR MRS WHITMAN SHE ALSO WON 44 OF HISPANIC VOTERS AND 46 OF THOSE EARNING UNDER 15000 A YEAR SHE WON A MAJORITY OF THE UNEMPLOYED FOR THE RECORD MRS WHITMAN RAN ON SCHOOL CHOICE WHICH INCREASINGLY RESONATES WITH URBAN PARENTS AND ELIMINATION OF THE INCOME TAX FOR PEOPLE MAKING UNDER 7500 WE TALKED TO THE REV DEFOREST SOARIES A BLACK BAPTIST MINISTER WHO HEADS A 3500PERSON CONGREGATION IN NEW BRUNSWICK NJ WHO OFFERED SOME PERSPECTIVE ON THIS INCIDENT HE ENDORSED JIM FLORIO BUT HE DISAGREES THAT BLACK MINISTERS WERE PAID OFF BY MRS WHITMAN HE SAYS MR FLORIO LOST BECAUSE HE RAN AN UNEXCITING CAMPAIGN AND BECAUSE MANY BLACKS WERE WILLING TO VOTE REPUBLICAN IT IS INSULTING TO INFER THAT BLACK PEOPLE ARE PART OF A MINDLESS HERD THAT CAN BE LED AROUND HE TOLD US THE BLACK VOTE IS BECOMING INDEPENDENT AND THE DAYS WHEN IT COULD BE CONTROLLED ARE GONE BUT REV SOARIES IS ALSO CONCERNED THAT A FEW BLACK MINISTERS GO TOO FAR INTO POLITICS HE NOTES THAT SOME ARE SO LOCKED INTO FEDERAL FUNDING AND GRANTS THAT THEY BECOME PART OF A POLITICAL MACHINE AFTER THEY GET HUNDREDS OF PEOPLE ON THEIR PAYROLL SO THEY SOMETIMES URGE THEIR CONGREGATIONS TO BACK A CERTAIN CANDIDATE THAT'S NOT VERY TASTEFUL IT ISN'T MY JOB TO TELL PEOPLE HOW TO VOTE HE SAYS CHARLES COOK A POLITICAL ANALYST WHO USED TO WORK FOR DEMOCRATIC CANDIDATES BELIEVES THE ROLLINS FLAP WILL DIE OUT QUICKLY SIMPLY BECAUSE IT'S IN THE BEST INTEREST OF NEITHER PARTY TO PROLONG THE DISCUSSION STILL IT IS AN INTERESTING SUBJECT LAST MONTH IN VIRGINIA'S ELECTION DEMOCRATS MARY SUE TERRY AND DON BEYER CAMPAIGNED FROM THE PULPITS OF SEVERAL BLACK CHURCHES REPUBLICANS WERE NOT SIMILARLY INVITED THE IRS REQUIRES HOWEVER THAT CHURCHES BE NONPARTISAN AND NOT BECOME A POLITICAL PLATFORM FOR ONE POINT OF VIEW MEANWHILE LIBERALS EXCORIATED EVANGELICAL GOP CANDIDATE MIKE FARRIS FOR INJECTING HIS RELIGION INTO POLITICS IT LOOKS LIKE A DOUBLE STANDARD MAYBE ALL OF THIS SUDDEN INTEREST IN MONEY MINISTERS URBAN VOTING PATTERNS RELIGION AND PARTY POLITICS DOES DESERVE AN INVESTIGATION BETTER THAN LAWYERS THOUGH WOULD BE A THOROUGH PIECE OF JOURNALISM THAT GOT DEEPER INTO THIS SUBJECT THAN THE POLITICAL LEGITIMACY OF NEW JERSEY'S GOVERNORELECT CHRISTINE TODD WHITMAN 9311120010 931112 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 ETHAN ALLEN INTERIORS INC 1448790 COMMON SHARES PRICED AT 26875 APIECE THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO LOUIS DREYFUS NATURAL GAS CORP INITIAL OFFERING OF SEVEN MILLION COMMON SHARES PRICED AT 18 APIECE THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO LTV CORP 20 MILLION COMMON SHARES OFFERED AT 1375 APIECE THROUGH LEAD UNDERWRITER SALOMON BROTHERS INC MACE SECURITY INTERNATIONAL INC INITIAL OFFERING OF 15 MILLION COMMON SHARES PRICED AT 550 APIECE THROUGH UNDERWRITERS LED BY CL KING & ASSOC NEWFIELD EXPLORATION CO INITIAL OFFERING OF 31 MILLION COMMON SHARES PRICED AT 1750 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO VESTA INSURANCE GROUP INC INITIAL OFFERING OF NINE MILLION COMMON SHARES PRICED AT 25 APIECE THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO SPIEKER PROPERTIES INC INITIAL OFFERING OF 204 MILLION COMMON SHARES PRICED AT 2050 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO ALLIANCE & LEICESTER BUILDING SOCIETY UK 200 MILLION OF UNSECURED UNSUBORDINATED FLOATINGRATE EURONOTES DUE NOVVEMBER 2000 AT ISSUE PRICE PAR VIA SAMUEL MONTAGU & CO REOFFERED AT 9915 AND INTEREST PAID QUARTERLY AT 15 BASIS POINTS OVER THE THREEMONTH LONDON INTERBANK OFFERED RATE FEES 105 BADEN WUERTTEMBERG GERMAN STATE 500 MILLION MARKS OF 62 EUROBONDS DUE NOV 22 2013 AT ISSUE PRICE 10199 VIA MORGAN STANLEY GMBH REOFFERED AT 99815 TO YIELD 622 PUT OPTION ON YEAR 10 AT PAR YEAR 11 AT 10037 YEAR 12 AT 10083 YEAR 13 AT 10137 YEAR 14 AT 10202 YEAR 15 AT 10278 YEAR 16 AT 10366 YEAR 17 AT 10468 YEAR 18 AT 10584 YEAR 19 AT 10716 AND YEAR 20 AT 10866 FEES 25 KIATHAKIN FINANCE & SECURITY CO THAILAND 60 MILLION OF CONVERTIBLE EUROBONDS DUE NOV 30 2003 WITH INDICATED COUPON OF 4 TO 45 AND ISSUED AT PAR VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD TERMS TO BE FIXED ON OR NEAR TUESDAY CONVERTIBLE INTO ORDINARY SHARES OF COMPANY AT INDICATED PREMIUM OF 10 TO 15 CALLABLE FROM DEC 15 1996 AND EVERY YEAR THEREAFTER SUBJECT TO SHARES BEING 140 OF CONVERTION PREMIUM FEES 25 LANDESBANK SCHLESWIGHOLSTEIN GIRONZENTRALE LUXEMBOURG BRANCH GERMANY 200 MILLION 45 EUROBONDS DUE JAN 10 1997 AT ISSUE PRICE 100425 VIA DAIWA EUROPE LTD REOFFERED AT 9925 TO YIELD 471 A MARGIN OF 20 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 1375 NATIONWIDE BUILDING SOCIETY UK 125 MILLION OF SUBORDINATED 8625 EUROBONDS DUE MARCH 29 2018 AT ISSUE PRICE 101323 VIA UNDERWRITERS BARING BROTHERS & CO AND SAMUEL MONTAGU & CO REOFFERED AT 99448 TO YIELD 8507 A MARGIN 130 BASIS POINTS ABOVE 875 UK GILT OF 2017 FEES 25 SAPPORO BREWERIES LTD JAPAN 200 MILLION MARKS OF 175 EUROBONDS WITH EQUITYWARRANTS DUE DEC 2 1997 AT ISSUE PRICE PAR VIA YAMAICHI BANK DEUTSCHLAND GMBH WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES FROM DEC 16 1993 TO NOV 26 1997 INDICATED PREMIUM 25 TERMS TO BE FIXED TUESDAY FEES 225 POINTS LESS 0125 FOR LEAD MANAGER SAPPORO BREWERIES LTD JAPAN 200 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE DEC 2 1997 WITH EQUITYPURCHASE WARRANTS CARRYING 0625 COUPON AT PAR VIA SWISS BANK CORP WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES FROM DEC 14 1993 TO NOV 24 1997 TERMS TO BE FIXED TUESDAY FEES 1625 STATENS BOLSTADSFINANSIERING SAKTIE BOLAG AB SWEDEN 10 BILLION YEN OF FLOATINGRATE EURONOTES DUE DEC 3 1998 AT ISSUE PRICE 103 VIA NIKKO EUROPE LTD INTEREST PAID SEMIANNUALLY AND FLOATS AT 62 BASIS POINTS ABOVE SIXMONTH LIBOR FOR YEN FEES UNDISCLOSED 9311120009 931112 PRUDENTIAL FACES NEW PROBLEMS OVER TRADES BY MICHAEL SICONOLFI AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL INSURANCE CO OF AMERICA AND ITS SECURITIES UNIT COULD BE FORCED TO RESCIND THOUSANDS OF TRADES WITH CUSTOMERS BECAUSE SOME OF THE INSURER'S AGENTS SOLD INVESTMENTS WITHOUT PROPER BROKER LICENSES PEOPLE FAMILIAR WITH THE MATTER SAID THE DISPUTED TRADES STEM FROM A 1991 AUDIT BY OREGON REGULATORS THAT FOCUSED ON A JOINT MARKETING ARRANGEMENT BETWEEN THE INSURER AND PRUDENTIALBACHE SECURITIES NOW KNOWN AS PRUDENTIAL SECURITIES INC UNDER THE ARRANGEMENT SOME PRUDENTIAL AGENTS PEDDLED LIMITED PARTNERSHIPS AND OTHER SECURITIES THAT THEY WEREN'T LICENSED TO SELL SAYS DAVID TATMAN ENFORCEMENT CHIEF WITH THE SECURITIES DIVISION OF THE OREGON DEPARTMENT OF CONSUMER AFFAIRS THE AGENTS COVERED UP THE IMPROPER TRADES BY RECORDING THEM AS SALES OF MUTUAL FUNDS WHICH THEY WERE LICENSED TO SELL MR TATMAN SAYS AND NOW PRUDENTIAL AND ITS SECURITIES UNIT COULD BE FORCED TO RESCIND THE TRADES AND PAY BACK INVESTORS THE PEOPLE SAID IF SOMEONE WHO SOLD A PRODUCT IS UNLICENSED I THINK THE INVESTOR HAS A CAUSE OF ACTION MR TATMAN SAID THE DISCLOSURE BRINGS A NEW WRINKLE TO THE REGULATORY WOES OF PRUDENTIAL SECURITIES THE NATION'S FOURTHLARGEST BROKERAGE FIRM LAST MONTH 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 ANY RESCISSIONS OF THE UNLICENSED TRADES WOULD REQUIRE PRUDENTIAL TO CANCEL THE DISPUTED SALES TO INVESTORS AND REPAY THEIR INITIAL VALUE PEOPLE FAMILIAR WITH THE MATTER SAY IT COULD COST PRUDENTIAL AS MUCH AS 10 MILLION IN ADDITION TO POSSIBLE SANCTIONS THE ULTIMATE COST FOR PRUDENTIAL DEPENDS ON HOW WELL THE INVESTMENTS HAVE PERFORMED SINCE THEY WERE SOLD PRUDENTIAL PLAYS DOWN THE FINANCIAL IMPACT OF ANY TRADE RESCISSIONS THE FIRM SAYS IT DOESN'T KNOW HOW MANY IMPROPER TRADES WERE MADE BUT ESTIMATES THAT IT WAS NO MORE THAN A COUPLE OF THOUSAND THE VAST MAJORITY OF TRADES WERE MADE BY PEOPLE WHO WERE PROPERLY REGISTERED TO MAKE THE SALE TO THE INDIVIDUAL A PRUDENTIAL SECURITIES SPOKESMAN SAID WHERE THE PROBLEM CAME FROM IS HOW THE TRADES' COMMISSIONS WERE SHARED ON THIS THING UNDER A JOINT MARKETING PROGRAM PRUDENTIAL AGENTS WERE ALLOWED TO SPLIT TRADING COMMISSIONS WITH PRUBACHE BROKERS ON CLIENT TRADES BUT AGENTS WEREN'T LEGALLY LICENSED TO SELL LIMITED PARTNERSHIPS AND SOME OTHER SECURITIES SOME AGENTS SOLD PARTNERSHIPS ANYWAY PEOPLE FAMILIAR WITH THE MATTER SAY AND OTHER AGENTS WORKED OUT PRIVATE DEALS WHERE THEY WOULD FUNNEL A CHUNK OF THEIR COMMISSIONS TO PRUBACHE BROKERS SIMPLY TO WRITE UP PARTNERSHIP TICKETS FOR THEM THE PEOPLE SAID IN MANY CASES AGENTS THEMSELVES WERE SELLING PARTNERSHIPS THEY WEREN'T SUPPOSED TO A FORMER SENIOR PRUDENTIAL BROKER SAYS A PRUDENTIAL INSURANCE SPOKESMAN SAID THIS IS TOTALLY UNCONNECTED TO THE PARTNERSHIP PROBLEM AND WILL NOT AFFECT THAT SETTLEMENT PROCESS AFTER OREGON DISCOVERED THE VIOLATIONS IT CALLED IN REPRESENTATIVES OF PRUDENTIAL PRUDENTIAL SECURITIES AND PRUCO SECURITIES THE BROKERDEALER FOR PRUDENTIAL'S INSURANCE AGENTS AND WON PROMISES THAT PRUDENTIAL WOULD MAKE SURE THE PROBLEM WOULDN'T RECUR AS THE LINE BETWEEN INSURANCE AND SECURITIES BLURS INSURANCE AGENTS HAVE HAD TO GET SECURITIES LICENSES BUT INSTEAD OF GETTING A SOCALLED SERIES 7 THE LICENSE THAT STOCKBROKERS HAVE THEY OFTEN GET A SERIES 6 A LICENSE THAT LETS THEM SELL MUTUAL FUNDS AND ANNUITIES BUT NOT MORE SOPHISTICATED INVESTMENTS LIKE PARTNERSHIPS INSURANCE AGENTS WITH SECURITIES LICENSES HAVE TO BE LICENSED WITH A BROKER PRUDENTIAL SET UP PRUCO SECURITIES AS THE BROKERDEALER FOR ITS AGENTS THE COMMISSIONSHARING PROGRAM WAS SCRAPPED IN EARLY 1991 A PRUDENTIAL SECURITIES SPOKESMAN CONCEDES THE ARRANGEMENT WAS NOT WHAT WE OUGHT TO HAVE BEEN DOING 9311120008 931112 AKZO ISSUES SHARES TO RAISE 749 MILLION FOR NOBEL TAKEOVER SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM DUTCH CHEMICAL GROUP AKZO NV SAID IT PLACED 7878788 SHARES OF ITS COMMON STOCK WITH INSTITUTIONAL INVESTORS AT 180 GUILDERS 95 EACH AT THAT PRICE AND VOLUME THE ISSUE RAISED ROUGHLY 142 BILLION GUILDERS 749 MILLION OF FRESH FUNDING WHICH AKZO SAID IT WILL USE TO HELP FINANCE THE PREVIOUSLY ANNOUNCED TAKEOVER OF SWEDISH CHEMICAL GROUP NOBEL INDUSTRIER AB WHEN IT ANNOUNCED THE NOBEL TAKEOVER ON MONDAY AKZO SAID IT PLANNED A PRIVATE PLACEMENT OF COMMON STOCK WITH DUTCH AND FOREIGN INSTITUTIONS TO RAISE ABOUT 13 BILLION GUILDERS TO HELP FUND THE TRANSACTION AKZO AGREED TO PAY 167 BILLION SWEDISH KRONOR 203 BILLION IN CASH AND STOCK FOR NOBEL'S CORE CHEMICAL OPERATIONS AND TO ASSUME AN ESTIMATED EIGHT BILLION KRONOR IN DEBT THE AKZO PLACEMENT WAS HANDLED BY SG WARBURG AS GLOBAL COORDINATOR AND ABNAMRO HOLDING AND ALFRED BERG AS LEAD MANAGERS THE TRANSACTIONS FOR AKZO SHARES ISSUED IN THIS WEEK'S PRIVATE PLACEMENTS WITH INSTITUTIONS ARE SEPARATE FROM THOSE THAT WILL BE MADE UNDER AKZO'S PLANNED PUBLIC TENDER OFFER FOR NOBEL'S COMMON AND PREFERRED SHARES AN AKZO SPOKESMAN NOTED THAT THE SHARES WILL NOT BE REGISTERED IN THE US WHERE SOME AKZO STOCK IS LISTED AND TRADED OVER THE COUNTER SHARES IN THE POSTTAKEOVER AKZO NOBEL WILL BE LISTED AND TRADED IN STOCKHOLM THE PRICE OF AKZO SHARES HAS PLUNGED TO 17670 GUILDERS AT YESTERDAY'S CLOSE FROM 19720 GUILDERS LAST FRIDAY REFLECTING THE PROJECTED DILUTIVE EFFECT OF THE NEW SHARES ON AKZO'S PERSHARE EARNINGS AKZO HOWEVER HAS SAID THE DILUTION WOULD BE LESS THAN 10 AND THAT THE NEGATIVE IMPACT WOULD BE VERY SHORTLIVED 9311120007 931112 ROOM GLUT PUTS THAI HOTELIERS IN A BIND FIVESTAR '80S SPAWNED AN ILLSTARRED BUILDING BOOM BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK TOURISM IS REBOUNDING IN THAILAND THIS YEAR AFTER A TWOYEAR SLUMP CAUSED BY THE GULF WAR AND 1992'S ANTIMILITARY DEMONSTRATIONS IN BANGKOK EVEN SO HOTELIERS IN THE LAND OF SMILES HAVE A LONG FACE SAYS JATUPORN KATHAKUL PRESIDENT OF THE THAI HOTELS ASSOCIATION THE REASON A SEVERE OVERSUPPLY OF ROOMS AVERAGE OCCUPANCYRATES AT THAI HOTELS ARE BELOW 50 YET DOZENS OF HOTEL PROJECTS CONCEIVED IN THE TOURISM BOOM OF THE 1980S ARE STILL UNDER WAY MANY HOTELS WERE HALF BUILT WHEN THE TOURISM SLUMP HIT AND INVESTORS FIGURED IT WAS TOO LATE TO TURN BACK I WAS ALREADY ON THE FIFTH FLOOR WHEN THE GULF WAR STARTED GRUMBLES THE OWNER OF A HIGHRISE LUXURY HOTEL IN CHIANG MAI THAILAND'S SECONDLARGEST CITY AS A RESULT ROOM RATES ARE IN A FREE FALL AND PROFITS HAVE PLUNGED INDUSTRY ANALYSTS SAY NO SIGNIFICANT IMPROVEMENT IS LIKELY BEFORE THE END OF THE DECADE THOUGH THEY FORESEE A SLIGHT RECOVERY IN 1995 MR JATUPORN OF THE HOTEL ASSOCIATION SAYS ROOM RATES ADJUSTED FOR INFLATION ARE EVEN LOWER THAN IN THE WORST MONTHS OF 1991 AND 1992 FIVESTAR HOTELS IN BANGKOK ARE OFFERING RATES AS LOW AS 2000 BAHT 7886 A FOURSTAR ROOM IN CHIANG MAI TYPICALLY COSTS 900 BAHT WITH BREAKFAST AND AIRPORT TRANSFERS INCLUDED SOME CHIANG MAI HOTELS ARE TRYING TO LURE BIG TOUR OPERATORS WITH PRICES 50 TO 70 BELOW PUBLISHED RATES CORPORATE CLIENTS SOMETIMES NEGOTIATE EVEN BETTER DEALS MY PEOPLE AT THE FRONT DESK HAVE PERMISSION TO GIVE A 50 DISCOUNT ON THE SPOT SAYS KANONG SUVANNAVISUTR GENERAL MANAGER OF THE 375ROOM EMPRESS HOTEL HORWATH ASIA PACIFIC A HOTELCONSULTANT FIRM PROJECTS THAT EVEN WITH A 10 ANNUAL RISE IN DEMAND THROUGH 1997 OCCUPANCY RATES IN CHIANG MAI WILL FALL FURTHER THE FIRM DOESN'T EXPECT IMPROVEMENT UNTIL THE LATE 1990S NO RELIEF IS IN SIGHT FOR BANGKOK HOTELIERS EITHER THE CITY HAD NEARLY 40000 HOTEL ROOMS AT THE END OF 1992 DOUBLE THE 1985 LEVEL AND ANOTHER 16000 WILL BE AVAILABLE BY THE END OF NEXT YEAR ACCORDING TO COLLIERS JARDINE LTD A PROPERTYCONSULTANT FIRM NEW IMPERIAL HOTEL GROUP WHICH ADDED TO THE GLUT IN BANGKOK BY OPENING THE 1400ROOM IMPERIAL QUEENS PARK EARLIER THIS YEAR RECENTLY REPORTED THAT FIRSTHALF PROFIT PLUNGED 86 TO 54 MILLION BAHT 212922 ANALYSTS EXPECT NEW IMPERIAL TO POST A LOSS NEXT YEAR THE ONLY MAJOR THAI HOTEL GROUP TO REPORT A FIRSTHALF PROFIT INCREASE WAS ROYAL GARDEN CO AND THAT WAS BECAUSE IT ALSO OPERATES A SHOPPING MALL ANYONE WHO BUILT A HOTEL RECENTLY IS OPERATING AT A LOSS SAYS ROB COLLINS HEAD OF RESEARCH AT ASIA EQUITY IN BANGKOK HE FIGURES IT TAKES AN AVERAGE 60 OCCUPANCY RATE OVER ONE YEAR FOR A NEW HOTEL TO BREAK EVEN THERE IS A GOOD CHANCE THAT A NUMBER OF COMPANIES WILL GO BUST NEXT YEAR MR COLLINS SAYS THE REBOUND IN TOURIST ARRIVALS IS TOO MODEST TO PROVIDE MUCH COMFORT IN THE SHORT TERM THE TOURISM AUTHORITY OF THAILAND EXPECTS ARRIVALS THIS YEAR TO TOTAL 56 MILLION UP 8 FROM A DEPRESSED 1992 LEVEL EVEN IF ARRIVALS CLIMB A STEADY 10 ANNUALLY HOTELINDUSTRY PROFIT WON'T RETURN TO 1989 LEVELS BEFORE 1998 SAYS JARDINE FLEMING THANAKOM SECURITIES LTD IN BANGKOK MEANWHILE MORE HOTELS ARE ON THE WAY A 407ROOM SHERATON TOWERS BANGKOK IS SCHEDULED TO OPEN IN 1995 HONG KONG & SHANGHAI HOTEL CORP IS DUE TO OPEN A 400ROOM PENINSULA HOTEL ON THE WEST BANK OF THE CHAO PHRAYA RIVER IN MID1996 THERE ARE ALSO PLANS TO PROCEED WITH CONSTRUCTION OF A 480ROOM RITZCARLTON AND A 520ROOM SOFITEL THESE FANCY HOTELS TEND TO APPEAL TO BIGSPENDING TOURISTS SUCH AS THE JAPANESE AMERICANS AND EUROPEANS WHO FLOCKED TO THAILAND IN THE LATE 1980S THE PROBLEM IS THAT THAILAND'S TOURISM GROWTH NOW COMES MOSTLY FROM SOUTH KOREA TAIWAN MAINLAND CHINA AND SOUTHEAST ASIA TRAVELERS FROM THOSE COUNTRIES AND REGIONS GENERALLY ARE MORE PRICECONSCIOUS PREFERRING TO STAY IN TWOSTAR AND THREESTAR HOTELS AND USE MORE OF THEIR CASH FOR SHOPPING THAT'S BAD NEWS FOR LUXURIOUS ESTABLISHMENTS SUCH AS THE SUKHOTHAI HOTEL IN BANGKOK IT HAS FILLED ON AVERAGE A MERE 30 OF ITS ROOMS SINCE OPENING IN 1991 MAKING MATTERS WORSE BANGKOK'S NOTORIOUS TRAFFIC JAMS ARE PROMPTING SOME BUSINESS TRAVELERS TO FORSAKE LUXURIOUS LODGINGS FOR CONVENIENT LOCATIONS BUSINESSMEN CAN'T AFFORD TO SIT IN TRAFFIC FOR HOURS SAYS BILL BLACK GENERAL MANAGER OF THE REGENT BANGKOK DESPITE THE RECENT STRONG PERFORMANCE OF THAILAND'S STOCK EXCHANGE MOST HOTEL STOCK PRICES REMAIN AT A THIRD OR SO OF THEIR 1990 PEAKS THOUGH FOR INVESTORS WILLING TO GAMBLE IT MIGHT BE A TIME TO JUMP IN SAYS MR COLLINS OF ASIA EQUITY NO DOUBT THE OUTLOOK FOR THE INDUSTRY IS VERY GRIM FOR THE NEXT YEAR HE SAYS BUT ADDS THAT THE BAD NEWS IS MORE THAN FULLY REFLECTED IN THE PRICES ORIENTAL THAILAND CO AND RAJADAMRI HOTEL CO WHICH OWNS THE REGENT ARE AMONG THE BARGAINS MR COLLINS SAYS WITH TOURISM REBOUNDING AND THE PEAK TOURISM SEASON JUST STARTING THERE'S A GLIMMER OF HOPE MR JATUPORN OF THE HOTEL ASSOCIATION PREDICTS OCCUPANCY RATES WILL RISE ABOUT 10 PERCENTAGE POINTS IN THE NEXT FEW MONTHS BEFORE DROPPING AGAIN WHEN MORE HOTELS ENTER THE FRAY IN 1994 9311120006 931112 TRAVEL SOME FLIERS PROFIT FROM QUIRKS IN FARES BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL HIDDEN CITIES EVOKE ANCIENT TREASURES BUT THEY REPRESENT A DIFFERENT KIND OF GEM FOR AIRLINE PASSENGERS AND THEY'RE TURNING UP EVERYWHERE THESE DAYS SOCALLED HIDDENCITY TICKETING REFERS TO A LOOPHOLE THAT ENABLES TRAVELERS TO REDUCE THE FARE THEY PAY BY OUTWITTING AIRLINES IT INVOLVES BUYING A CHEAPER TICKET FOR A CITY BEYOND THE PASSENGER'S ACTUAL DESTINATION FOR EXAMPLE AN UNRESTRICTED ONEWAY FARE BETWEEN NEWARK NJ AND RALEIGHDURHAM NC COSTS 299 ON AMERICAN AIRLINES BUT A FLIER CAN PAY 99 ON AMERICAN BY BUYING A TICKET FOR A NEWARKGREENSBORO NC FLIGHT THAT INCLUDES A STOP IN RALEIGHDURHAM ON THE WAY THE FLIER SIMPLY STAYS IN RALEIGHDURHAM AND IGNORES THE FINAL LEG OF THE TRIP THE TACTIC DOESN'T VIOLATE ANY LAWS BUT IT DOES CARRY SOME RISKS AIRLINES SAY THE PLOY VIOLATES THE RULES UNDER WHICH THE TICKET WAS ISSUED AND CARRIERS HAVE THE RIGHT TO DECLARE A TICKET NULL AND VOID IF THOSE RULES ARE BROKEN LEGAL EXPERTS SAY SOME AGENTS FEARING CARRIERS WILL CRACK DOWN ON THEM WON'T BOOK HIDDENCITY TICKETS FEW FLIERS ARE CAUGHT IN THE ACT AIRLINES CONCEDE THAT TRACKING WHERE PASSENGERS GET ON AND OFF PLANES IS DIFFICULT AND COSTLY AND TRANSGRESSORS DON'T FACE DRACONIAN PENALTIES THEY TYPICALLY EITHER LOSE THEIR TICKET OR PAY THE PUBLISHED FARE THE PRACTICE HAS BEEN AROUND FOR MANY YEARS BUT OPPORTUNITIES TO USE IT HAVE INCREASED IN RECENT MONTHS PARTICULARLY IN EAST COAST MARKETS SEVERAL FACTORS ARE DRIVING THE TREND INCLUDING THE EXPANSION OF LOWFARE CARRIERS FIERCE BUT LOCALIZED FARE WARS AND THE GENERALLY HIGH LEVEL OF FULLFARE TICKET PRICES MANY HIDDEN CITIES WERE ELIMINATED LAST YEAR AFTER AMERICAN INTRODUCED ITS SIMPLIFIED FARE STRUCTURE BUT SINCE SEPTEMBER 1992 WHEN THE FARE STRUCTURE WAS ABANDONED THE NUMBER OF ROUTES WITH HIDDEN CITIES IS FIVE TIMES HIGHER SAYS TOM PARSONS EDITOR OF THE ARLINGTON TEXAS PUBLICATION BEST FARES HIGH TICKET PRICES HAVE ALSO ENCOURAGED CORPORATIONS TO THINK ABOUT HIDDENCITY TICKETING BY AND LARGE COMPANIES HAVE AGGRESSIVELY TAKEN ADVANTAGE OF HIDDEN CITIES AS OVERALL TICKET FARES HAVE DOUBLED SINCE LAST YEAR SAYS MARK PESTRONK A WASHINGTON TRAVEL LAWYER AND BY AND LARGE TRAVEL AGENTS ARE GOING ALONG WITH IT SOME AIRLINES HAVE TRIED TO FERRET OUT HIDDENCITY FLIERS BY TRACKING WHICH TICKET COUPONS THEY SELL BUT DON'T COLLECT AT LEAST ONE PASSENGER IS ELUDING DETECTION ACCORDING TO HIS TRAVEL AGENT ON THE SECOND LEG OF THE TRIP HE GIVES HIS TICKET TO THE GATE AGENT BOARDS THE FLIGHT THEN LEAVES THE PLANE FOR THE BATHROOM AND NEVER RETURNS HE THUS COVERS HIS TRACKS AND GETS FREQUENT FLIER MILES AS WELL SOME CARRIERS ARE SIMPLY RESIGNED TO THE PROBLEM SAYS A SPOKESWOMAN FOR USAIR GROUP INC'S USAIR UNIT THE ONLY WAY TO GET RID OF HIDDENCITY TICKETING IS TO EITHER REGULATE THE INDUSTRY OR NOT HAVE DISCOUNT FARES NEITHER OF WHICH THE AIRLINE ADVOCATES BUT COMPANIES THAT WANT TO USE HIDDENCITY TICKETS SHOULD PROBABLY STILL THINK TWICE YOU MAY SAVE A FEW HUNDRED BUCKS BUT YOU RISK ALIENATING A CARRIER THAT YOU COULD SAVE HUNDREDS OF THOUSANDS OF DOLLARS ON THROUGH CORPORATE DISCOUNTS SAYS THOMAS R WILKINSON A TRAVEL LAWYER WITH CALDWELL ASSOCIATES IN WASHINGTON THE SURGING NUMBER OF HIDDEN CITIES REFLECTS NEW COMPETITIVE PRESSURES CONSIDER THE NEWARK EXAMPLE CITED ABOVE LAST MONTH CONTINENTAL AIRLINES INTRODUCED A SHORTHAUL NOMEAL SERVICE THROUGHOUT THE EAST CHARGING LOW PRICES THAT INCLUDE A 99 NONSTOP FARE BETWEEN NEWARK AND GREENSBORO THAT FORCED THE HAND OF AMR CORP'S AMERICAN IT DOESN'T FLY NONSTOP BETWEEN NEWARK AND GREENSBORO SO IT COULD ONLY MATCH CONTINENTAL BY FLYING PASSENGERS THROUGH ITS HUB IN RALEIGHDURHAM THUS CREATING A HIDDEN CITY THE EAST COAST EXPANSION OF LOWFARE SOUTHWEST AIRLINES IS APPLYING SIMILAR PRESSURES USAIR HAS AN UNRESTRICTED ONEWAY FARE OF 299 BETWEEN BALTIMORE AND PITTSBURGH BUT TO COMPETE WITH SOUTHWEST'S NEW BALTIMORE SERVICE USAIR PASSENGERS PAY JUST 190 TO FLY FROM BALTIMORE TO KANSAS CITY WITH A STOPOVER IN PITTSBURGH SMALL NEW LOWFARE AIRLINES LIKE VALUJET IN ATLANTA AND ULTRAIR IN NEWARK ARE CAUSING SIMILAR PRICING DISTORTIONS ELSEWHERE EVERY TIME MAJORS MATCH A NICHE AIRLINE IT CREATES A HIDDEN CITY AT ONE OF THEIR HUBS MR PARSONS SAYS IN THEIR EFFORTS TO AVOID COSTLY ACROSSTHEBOARD FARE WARS AIRLINES ARE ENGAGING IN MARKETTOMARKET SKIRMISHES AND THAT TOO IS OPENING UP MANY HIDDENCITY BARGAINS A FARE WAR IN COLUMBUS OHIO FOR EXAMPLE IS CREATING DISCOUNTS IN CHICAGO MINNEAPOLIS AND OTHER CITIES THUS A TRAVELER CAN FLY FROM ONTARIO CALIF TO CHICAGO ON UAL CORP'S UNITED AIRLINES FOR A ONEWAY UNRESTRICTED FARE OF 630 THAT FLIGHT CONTINUES TO COLUMBUS AND THE PRICE OF A TICKET FOR THE ONTARIOCHICAGOCOLUMBUS TRIP FALLS TO 251 SIMILARLY ON WINGS HOLDINGS INC'S NORTHWEST AIRLINES A ONEWAY UNRESTRICTED FARE BETWEEN LOS ANGELES AND MINNEAPOLIS IS 588 BUT IF THE TRIP INCLUDES A CONNECTING FLIGHT TO COLUMBUS THE FARE FALLS TO 251 WHILE HIDDENCITY TICKETING MAY BENEFIT SHREWD TRAVELERS IT ALSO REINFORCES THE IMPRESSION THAT THE INDUSTRY HAS CREATED AN INEQUITABLE AND INSCRUTABLE FARE STRUCTURE AIRLINES WANT BUSINESS TRAVELERS BACK ON THE ROAD BUT THESE FARE QUIRKS ERODE THE AIRLINES' CREDIBILITY AND MAKE PASSENGERS FEEL LIKE CRIMINALS SAYS JOE BRANCATELLI TRAVEL ADVISER OF TRAVEL HOLIDAY MAGAZINE THE PLOY IS USUALLY USED ONLY WITH TWO ONEWAY TICKETS A ROUNDTRIP TICKET IS PROBLEMATIC BECAUSE YOU NEVER REACH YOUR FINAL DESTINATION AND CAN'T BOARD YOUR RETURN FLIGHT WHERE YOU'RE SUPPOSED TO 9311120005 931112 EUROPEANS' FERVOR FOR GOURMET BREWS JOLTS COFFEE MAKERS INTO INSTANT MARKET BY CACILIE ROHWEDDER STAFF REPORTER OF THE WALL STREET JOURNAL A CONSUMER CRAZE FOR EXOTIC COFFEE IS JOLTING EUROPEAN COFFEE MAKERS GOURMET BLENDS ARE TURNING INSTANT COFFEE ONCE SCORNED AS TASTELESS BREW FOR THE UNCULTURED INTO A HOT SELL NORTHERN EUROPEANS ARE DEVELOPING A TASTE NOT ONLY FOR INSTANT ESPRESSO AND CAPPUCCINO BUT FOR AMARETTO VANILLA OR IRISH CREAMFLAVORED COFFEE AS WELL AS ICE COFFEE AND COFFE SHAKES TCHIBO HOLDING AG THE GERMAN COFFEE MAKER IS LAUNCHING CHRISTMAS COFFEE AND CHRISTMAS SCHOKO CINNAMONSPICED CAPPUCCINO AND COCOA MIXTURES IN FESTIVE PACKAGING TCHIBO IS OFFERING ONLY 75 MILLION BOXES OR 75 MILLION CUPS OF THE UPSCALE PRODUCTS THE MARKET IS MOVING FROM COFFEE TO HOT BEVERAGES IN A SENSE SAYS MARCO ERIKKSON EXPORT MANAGER WITH TURINBASED LUIGGI LAVAZZA SPA ITALY'S LARGEST COFFEE MAKER IT'S A POLICY DECISION A COMPANY HAS TO TAKE LAVAZZA IS CATERING TO NORTHERN EUROPEANS' CRAVING FOR AUTHENTIC FOREIGN FARE DEPENDING ON THE COUNTRY SALES OF LAVAZZA'S CAPPUCCINO AND ROAST ESPRESSO ARE RISING BETWEEN 10 AND 30 PER YEAR BUT COFFEE MAKERS SAY INNOVATIVE INSTANT DRINKS ARE A SIDE PRODUCT TO GROUND COFFEE NOT AN ALTERNATIVE PEOPLE FEEL LIKE THEY CAN DRINK AN EXTRA CUP NOW ASSERTS FRIEDER ROTZOLL GENERAL SECRETARY OF THE GERMAN COFFEE ASSOCIATION IN HAMBURG AND TRENDY BLENDS HELP DEFEAT THE STODGY IMAGE TRADITIONAL COFFEE HAS WITH YOUNG CONSUMERS COFFEE IS KIND OF AN OLD PRODUCT MOST COFFEE DRINKERS ARE OVER 40 SAYS TCHIBOSPOKESMAN MATTHIAS BORN YOUNG PEOPLE DRINK LESS BUT WE'RE TAPPING INTO THAT MARKET CONSUMERS UNDER 30 ARE CRAZY ABOUT HAZELNUTFLAVORED CAFE AU LAIT ACCORDING TO MR BORN GOURMET COFFEES ALSO ARE BENEFITING FROM EUROPEANS' CONVENIENCE CRAZE WE'RE MARKETING ONLY THE CONVENIENCE ASPECT SAYS ALBERT FREESE WHO HEADS THE EUROPEAN COFFEE BUSINESS AT JACOBSSUCHARD A UNIT OF PHILIP MORRIS CO AND EUROPE'S LARGEST ROASTCOFFEE SUPPLIER MR FREESE SAYS THE FANCY FORMULAS OFFER CONSUMERS ITALIANSTYLE BREWS WITHOUT COSTLY ESPRESSO MACHINES OR RESTAURANT VISITS MANUFACTURERS AND RETAILERS WELCOME THE PREMIUM PRODUCTS FOR THEIR HIGH MARGINS MR FREESE FOR INSTANCE SAYS JACOBS' SPECIALTY PRODUCTS COST 30 TO 40 MORE THAN REGULAR COFFEE INDUSTRY EXPERTS SAY THE FERVOR FOR FANCY BLENDS IS A WORLDWIDE TREND BUT WHILE US CONSUMERS BUY GOURMET BEANS FOR HOME GRINDING EUROPEANS ARE REVIVING SALES OF INSTANT BREWS CONVENIENCE IS AN IMPORTANT MOTIVATION BUT INSTANT COFFEE IS BECOMING SO GOOD THAT YOU HAVE IT NOT ONLY WHEN YOU'RE IN A HURRY BUT EVEN WHEN YOU HAVE TIME SAYS BARBARA DUFRENE SECRETARY GENERAL OF THE PARISBASED ASSOCIATION OF EUROPEAN INSTANT COFFEE PRODUCERS FOR INSTANCE SWITZERLAND'S NESTLE SA IS SELLING MORE INSTANT SPECIALTY BREWS IN THE FIRST HALF OF THIS YEAR DANISH SUPERMARKET SALES OF INSTANT COFFEE GREW A WHOPPING 682 BUT IN A COUNTRY WHERE TRADITIONAL COFFEE ACCOUNTS FOR 96 OF SALES THE 5 MILLION INSTANT MARKET IS IN ITS INFANCY SPECIALTY PRODUCTS ESSENTIALLY CREATED THE INSTANT MARKET HERE SAYS OLAV KUUR WHO MANAGES THE INSTANT BEVERAGE PRODUCTS AT MD FOODS AMBA IN AARHUS DENMARK TWO YEARS AGO THE DAIRY COOPERATIVE LAUNCHED CAPRIMO A CREAMY COMBINATION OF COCOA AND ESPRESSO WE SAW A GREAT OPPORTUNITY WE COULD SEE THE MARKET WAS GROWING SAYS MR KUUR GOURMET COFFEES ARE HELPED BY TELEVISION ADVERTISING WHICH IS A NOVELTY ON DENMARK'S LARGELY STATERUN SMALL SCREEN WHILE CONSUMER GOODS COMPANIES INITIALLY FOCUSED ON MASS PRODUCTS SUCH AS SHAMPOO OR LAUNDRY DETERGENT ADS FOR SPECIALTYPRODUCT GROUPS ARE BECOMING MORE COMMON SAYS HENRIK ANDERSON A MARKETING CONSULTANT WITH MCKINSEY & CO IN COPENHAGEN PEOPLE JUST AREN'T USED TO BEING TOLD ABOUT NEW PRODUCTS SO AGGRESSIVELY HE EXPLAINS NOT EVERYONE IN THE INDUSTRY IS BREWING UP GOURMET BLENDS DESPITE GERMANS' APPETITE FOR THE PRODUCTS EDUSCHO GMBH MELITTA UNTERNEHMENSGRUPPE BENTZ KG AND MUNICHBASED ALOIS DALLMAYR KG SAY THEY'RE STICKING TO TRADITIONAL GROUNDS DIETER VOGEL AN EXECUTIVE AT DALLMAYR IN WHICH NESTLE HOLDS A 486 STAKE EXPECTS SOME SPECIALTIES TO BE SHORTLIVED TRENDS THIS YEAR SALES VOLUME OF DALLMAYR ROAST COFFEE ROSE 65 HE SAYS AT MELITTA INSTANT COFFEE IS A TRADITIONAL TABOO BECAUSE THE COMPANY IS A LEADING MAKER WORLDWIDE OF COFFEE FILTERS SOME COUNTRIES BUCK THE GOURMET TREND ALTOGETHER IN SPAIN SWITZERLAND AND BRITAIN SALES OF INSTANT COFFEE DROPPED WHILE ROASTCOFFEE SALES STAGNATED IN BRITAIN WHERE INSTANT COFFEES ACCOUNT FOR 89 OF THE MARKET FIRSTHALF INSTANT SALES DECLINED BY 08 IN SOME COUNTRIES WHERE INSTANT AND SPECIALTY COFFEES ARE UNCOMMON LOCAL SUPPLIERS ARE CAUTIOUSLY EYEING LARGE MARKETERS' SPECIALTY INNOVATIONS AUSTRIAN COFFEE MAKER JULIUS MEINL AG FOR INSTANCE SAYS IT'S PLANNING TO COUNTER NESTLE'S INSTANT CAPPUCCINO WITH THREE GOURMET BLENDS DUE TO BE LAUNCHED WITHIN THE NEXT SIX WEEKS 9311120004 931112 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED NOV 5 ACCOUNTED FOR 93 OR AN AVERAGE 289 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 121 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 429 INVOLVED STOCKINDEX ARBITRAGE UP FROM 272 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 526 OF PROGRAM TRADING WAS EXECUTED BY FIRMS' FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 437 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 37 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS SUSQUEHANNA KIDDER PEABODY AND COOPER NEFF EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND BEAR STEARNS DID MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9311120003 931112 WHO'S NEWS DUPONT MERCK TAPS LANDGRAF TO BECOME NEXT PRESIDENT CHIEF WILMINGTON DEL DUPONT MERCK PHARMACEUTICAL CO SAID KURT M LANDGRAF EXECUTIVE VICE PRESIDENT WILL ASSUME THE POSITION OF PRESIDENT AND CHIEF EXECUTIVE OFFICER WHEN JOSEPH A MOLLICA RETIRES ON DEC 1 DR MOLLICA 53 YEARS OLD IS RETIRING TO PURSUE OTHER OPPORTUNITIES TO CAPITALIZE ON HIS TALENTS AND ABILITIES IN CREATING AND TURNING AROUND ORGANIZATIONS ACCORDING TO THE COMPANY DR MOLLICA WAS APPOINTED PRESIDENT AND CHIEF EXECUTIVE WHEN THE COMPANY WAS FORMED IN 1991 AS A JOINT VENTURE BETWEEN DUPONT CO AND MERCK & CO LIKE DR MOLLICA THE 47YEAROLD MR LANDGRAF CAME TO THE JOINT VENTURE FROM DUPONT HE WILL TAKE OVER THE COMPANY DURING ONE OF THE MOST TUMULTUOUS PERIODS IN THE INDUSTRY'S HISTORY AS COSTCONSCIOUS MANAGEDCARE CUSTOMERS MUSCLE STEEP PRICE DISCOUNTS FROM DRUG MANUFACTURERS AND AS NATIONAL HEALTHCARE REFORM LOOMS OVER THE NEXT FOUR TO FIVE YEARS MR LANDGRAF SAID HE WILL SEEK TO REDUCE OVERALL COSTS BY 10 HE PROJECTED TOTAL REVENUE GROWTH OF 5 TO 10 DURING THAT PERIOD DUPONT MERCK EXPECTS TO TOP 1 BILLION IN SALES IN 1993 A SPOKESWOMAN SAID IN 1992 THE COMPANY HAD SALES OF 975 MILLION SALES AND MARKETING WILL CHANGE DRAMATICALLY MR LANDGRAF SAID AS THE COMPANY RESTRUCTURES TO BETTER RESPOND TO MANAGEDCARE CUSTOMERS SALES AND MARKETING EXPENSES WILL BE TRIMMED TO BETWEEN 10 AND 15 OF SALES FROM BETWEEN 20 AND 25 CURRENTLY HE SAID BUT THE COMPANY WILL TRY TO SPARE RESEARCH AND DEVELOPMENT FROM COSTCUTTING MR LANDGRAF SAID WE INTEND TO HOLD OUR COMMITMENT TO R&D AS LONG AS WE CAN HE SAID 9311120002 931112 CZECH INFLATION SLOWS FRANKFURT CONSUMER PRICE INFLATION IN THE CZECH REPUBLIC SLOWED TO 11 IN OCTOBER FROM SEPTEMBER AND THE STATE BUDGET HAD A LARGER SURPLUS OF 64 BILLION KORUNA 2212 MILLION AT THE END OF OCTOBER THE CZECH NATIONAL BANK SAID THE CENTRAL BANK SAID AFTER THE MEETING OF ITS GOVERNING BOARD THAT THE POSITIVE TREND WAS CONTINUING IN A NUMBER OF ECONOMIC AREAS CONSUMER PRICE INFLATION IN SEPTEMBER JUMPED 14 FROM AUGUST LARGELY AS A RESULT OF HIGHER PRICES FOR FOOD PARTICULARLY MEAT THE OCTOBER BUDGET SURPLUS INCREASED FROM 43 BILLION KORUNA IN SEPTEMBER THE CENTRAL BANK REPORTED THAT THE HARD CURRENCY RESERVES OF THE BANKING SECTOR AMOUNTED TO MORE THAN 6 BILLION IN OCTOBER UP FROM A PRELIMINARY 58 BILLION IN SEPTEMBER 9311120001 931112 WHAT'S NEWS WORLDWIDE THE UN CLAMPED NEW SANCTIONS ON LIBYA OVER THE PAN AM BOMBING DESPITE COMPLAINTS IT WAS DOING TOO LITTLE TOO LATE THE SECURITY COUNCIL VOTED TO TIGHTEN SANCTIONS AGAINST LIBYA BY FREEZING ASSETS AND BANNING IMPORTS OF SOME OIL EQUIPMENT BUT THE LIMITED SANCTIONS DON'T AFFECT LIBYA'S OIL EXPORTS WHICH GENERATE 9 BILLION A YEAR IN REVENUE THE COUNCIL'S ACTION WAS AIMED AT PRESSURING LIBYA TO SURRENDER TWO SUSPECTS IN THE 1988 BOMBING OF A PAN AM AIRLINER OVER SCOTLAND SINCE LIBYA KNEW OF THE IMPENDING SANCTIONS FOR MONTHS BANKERS BELIEVE IT HAS MOVED 65 BILLION INTO THIRD WORLD BANKS OUT OF THE REACH OF THE WEST NEW JERSEY DEMOCRATS WILL ASK A JUDGE FOR PERMISSION TO INTERVIEW GOVELECT WHITMAN'S CAMPAIGN CHIEF UNDER OATH TO LEARN WHETHER LAWS WERE VIOLATED IN HER ELECTION A BLACK CLERGYMAN SAID HE WAS TOLD THAT SOME MINISTERS ACKNOWLEDGE BEING APPROACHED BY REPUBLICANS SEEKING TO PAY THEM TO SUPPRESS BLACK VOTES TENSIONS EASED SOMEWHAT IN SARAJEVO AFTER TWO DAYS OF DEADLY SHELLING IN THE BOSNIAN CAPITAL SERBS FREED TWO KIDNAPPED CROATS AND THE MUSLIMLED GOVERNMENT LET A GROUP OF ELDERLY SERBS LEAVE THE COUNTRY TWO CHILDREN WHOSE LEGS WERE SHATTERED BY A MORTAR ATTACK ON A SARAJEVO SCHOOL TUESDAY WERE FLOWN TO ITALY FOR TREATMENT OBESITY IS COVERED UNDER THE DISABILITIES LAW ACCORDING TO FEDERAL WORKPLACE REGULATORS THE EEOC IN A BRIEF THAT RECEIVED LITTLE PUBLICITY WHEN FILED DETERMINED THAT PEOPLE WHO HAVE BEEN EXTREMELY OVERWEIGHT FOR A LONG PERIOD OF TIME MAY QUALIFY FOR PROTECTION CHURCH OF ENGLAND OFFICIALS VOTED OVERWHELMINGLY TO ALLOW WOMEN TO BECOME PRIESTS BUT DILUTED THE MEASURE TO ACCOMMODATE THOSE WHO DISAPPROVED WOMEN PROTESTERS GATHERED TO DENOUNCE A PROVISION ESTABLISHING SPECIAL ROVING BISHOPS TO DEAL WITH CLERGY AND PARISHIONERS WHO ARE UNABLE TO ACCEPT WOMEN AS PRIESTS SOUTH AFRICAN NEGOTIATORS AGREED TO EXCISE A NOTORIOUS APARTHEID LAW THAT PERMITTED DETENTION WITHOUT TRIAL HUMANRIGHTS OFFICIALS HAVE ESTIMATED THAT 80000 POLITICAL OPPONENTS WERE JAILED UNDER THE LAW PUERTO RICANS TURNED OUT IN LARGE NUMBERS FOR FINAL RALLIES BEFORE THEY CAST VOTES FOR STATEHOOD CONTINUED COMMONWEALTH STATUS OR INDEPENDENCE SUNDAY'S PLEBISCITE IS NONBINDING BUT GOV ROSSELLO TOLD A PROSTATEHOOD RALLY THAT IF THAT OPTION WINS HE WILL PUSH TO GET APPROVAL FROM CONGRESS FOR THE ISLAND TO BECOME THE 51ST US STATE ATMOSPHERIC OZONE DEPLETION EXPOSES POPULATED AREAS OF THE EARTH TO HARMFUL ULTRAVIOLET RAYS CANADIAN SCIENTISTS REPORTED UNTIL NOW GREATER EXPOSURE TO ULTRAVIOLET RAYS HAS BEEN LINKED TO OZONE DEPLETION ONLY OVER ANTARCTICA THE NEW FINDINGS IN SCIENCE MAGAZINE ARE BASED ON MEASUREMENTS OF ULTRAVIOLET LIGHT REACHING TORONTO CHRONIC DRINKING DOESN'T KILL NERVE CELLS IN THE BRAIN AS IS COMMONLY BELIEVED THOUGH THE CELLS CAN BE SERIOUSLY DAMAGED ACCORDING TO A DANISH STUDY IN THE BRITISH JOURNAL LANCET THE FINDINGS BASED ON EXAMINATIONS OF THE BRAINS OF ALCOHOLICS WHO DIED SUGGEST IT MAY BE EASIER THAN PREVIOUSLY THOUGHT TO RESTORE BRAIN FUNCTION A HEAVY RAINSTORM SENT MUD ROCKS AND TREES SLIDING DOWN SCORCHED SOUTHERN CALIFORNIA HILLSIDES FLOODING HOMES IN ONE NEIGHBORHOOD BLOCKING A FEW HIGHWAYS AND ALARMING HOMEOWNERS THE STORM WAS THE FIRST SINCE THE RECENT FIRES THAT KILLED THREE PEOPLE AND DESTROYED HUNDREDS OF HOMES THE GERMAN GOVERNMENT WILL OFFER A BIG INCREASE IN COMPENSATION TO PEOPLE INFECTED WITH THE AIDS VIRUS THROUGH CONTAMINATED BLOOD A PARLIAMENT COMMITTEE DECIDED THE PANEL RAISED THE GOVERNMENT CONTRIBUTION TOWARD A VICTIM FUND TO 118 MILLION FROM 12 MILLION AT LEAST TWO FIRMS MAY HAVE DISTRIBUTED TAINTED BLOOD FOR OVER A DECADE RUSSIA HAS BACKED AWAY FROM A THREAT TO PULL OUT OF A EUROPEAN CONVENTIONAL ARMS TREATY DIPLOMATS SAID NATO ALLIES HAD OPPOSED MOSCOW'S DEMANDS FOR CHANGES IN THE CFE PACT SEPARATELY A YELTSIN FOE ACCUSED HIM OF USING DIRTY TRICKS BY EXCLUDING EIGHT PARTIES FROM NEXT MONTH'S VOTE TAMIL REBELS OVERRAN A MILITARY BASE IN NORTHERN SRI LANKA BEFORE DAWN KILLING SOME 200 SOLDIERS AND SAILORS ACCORDING TO MILITARY AUTHORITIES SOME 50 INSURGENTS WERE REPORTED KILLED 9311120121 931013 RULE OF LAW SUPREME COURT NEEDS A MANAGEMENT REVOLT BY KENNETH W STARR LATE LAST SPRING THE SUPREME COURT GRANTED CERTIORARI IN A CASE INVOLVING 2 LIVE CREW'S PARODY OF ROY ORBISON'S 1960S HIT PRETTY WOMAN 2 LIVE CREW'S LATTERDAY LYRICS ARE HOBBESIAN NASTY BRUTISH AND MERCIFULLY SHORT THE SERIOUS LEGAL ISSUE NOW BEFORE THE COURT IN THIS CASE IS WHETHER 2 LIVE CREW'S RAUNCHY RENDITION OF THE SONG INFRINGED MR ORBISON'S LOFTIER LYRICS AT ABOUT THE TIME IT WAS SINKING INTO 2 LIVE CREW'S DEPTHS OF VULGARITY THE COURT WAS REBUFFING THE EFFORTS OF QUAKER OATS CO TO BRING ORDER OUT OF THE CHAOS LONG CHARACTERIZING TRADEMARK LAW TURNING A DEAF EAR TO THE COMPANY'S IMPORTUNINGS FOR REVIEW OF THE LARGEST TRADEMARK JUDGMENT IN HISTORY THE GATORADE LITIGATION IN ILLINOIS THE COURT LET STAND A JUDGMENT TENUOUSLY SUPPORTED BY A CONFUSED SET OF LOWER COURT OPINIONS THE QUAKER OATS CASE IS CERTAINLY LESS SEXY THAN THE 2 LIVE CREW CASE BUT THE SUBJECT MATTER TRADEMARK LAW IS EQUALLY IMPORTANT THESE ARE NOT ISOLATED EXAMPLES OF THE MODERN SUPREME COURT'S PECULIAR SYSTEM OF SELECTING CASES ALL TOO OFTEN THESE DAYS THE COURT IS ABDICATING ITS RESPONSIBILITY TO SELECT COMPLEX CASES WITH CONSIDERABLE PRACTICAL IMPORTANCE THESE ARE OFTEN CASES OF IMMENSE IMPORTANCE TO BUSINESS THEN THERE'S THE RELATED MYSTERY OF THE DISAPPEARING DOCKET THE NUMBER OF CASES THE COURT ACCEPTS EACH TERM IS DOWN A STARTLING 30 OVER THE PAST DECADE THE EXPLANATION IS NOT AS IS COMMONLY ASSUMED PHILOSOPHY OR IDEOLOGY THE ANSWER LIES RATHER IN TWO INTERTWINED REALITIES OF MODERN COURT LIFE A LACK OF ATTENTION BY THE JUSTICES THEMSELVES TO THE REVIEW PROCESS AND RELATEDLY A CEDING OF POWER TO CLERKS WHO TYPICALLY HAVE NEVER PRACTICED LAW OR OTHERWISE BEEN INVOLVED IN THE WORLD OF FREE ENTERPRISE THE COURT'S SYSTEM FOR SELECTING CASES IS SIMPLE THE JUSTICES THEMSELVES RARELY READ THE CERTIORARI DOCUMENTS THAT PARTIES GO TO GREAT TROUBLE AND EXPENSE TO PREPARE THE LAW CLERKS DO THAT FOR THEM LIKE CONGRESSMEN JUSTICES HAVE LEARNED TO RELY ON STAFF AND TALENTED THEIR STAFF IS STRAIGHT FROM LEADING LAW REVIEWS AND COVETED FEDERAL APPELLATE CLERKSHIPS THESE 36 OR SO BRIGHT YOUNG LAWYERS WIELD ENORMOUS POWER THEY NOT ONLY DRAFT OPINIONS IN MERITS CASES BUT ALSO INHABIT THE SWAMP INTERNALLY DUBBED THE CERT POOL NO MATTER HOW COMPLEX THE CASE A SINGLE LAW CLERK WRITES A SINGLE MEMO ON ANY GIVEN CERTIORARI PETITION A MULTIBILLIONDOLLAR CASE IS CHANNELED INTO THIS BOTTLENECK IN EXACTLY THE SAME MANNER AS CHILD PORNO OR 2 LIVE CREW CASES THAT MEMO IS THEN CONSUMED BY EIGHT OF THE NINE JUSTICES JUSTICE STEVENS IS THE LONE HOLDOUT THIS JUDICIAL BERMUDA TRIANGLE HAS SUCCEEDED IN CHOKING OFF MUCH OF THE IMPORTANT BUT UNGLAMOROUS BUSINESSRELATED ISSUES FROM THE CONTEMPORARY COURT'S DOCKET NO MATTER HOW BRIGHT AND PROMISING THE LAW CLERKS ARE THEY ARE TRAPPED IN A SYSTEM THAT IS STRUCTURALLY IMPAIRED THE FUNCTION OF SELECTING 100 OR SO CASES FROM THE POOL OF 6000 PETITIONS IS JUST TOO IMPORTANT TO INVEST IN VERY SMART BUT BRANDNEW LAWYERS MY REINVENTINGGOVERNMENTSTYLE SOLUTION TO THIS MANAGEMENT PROBLEM IS SIMPLE DISBAND THE CERT POOL THE BOTTLENECK SYSTEM WAS NOT AGREED TO AT THE CONSTITUTIONAL CONVENTION IN PHILADELPHIA OR INCLUDED IN THE JUDICIARY ACT OF 1789 TO THE CONTRARY IT IS A NEWFANGLED CONTRAPTION THAT BEGAN AS A MODEST EXPERIMENT BUT HAS GROWN INTO A LEVIATHAN IT IS AT WAR WITH JUSTICE LOUIS BRANDEIS'S PROUD PROCLAMATION THAT THE JUSTICES UNLIKE HIGH GOVERNMENT OFFICIALS FROM THE OTHER BRANCHES DO THEIR OWN WORK BUT HOW TO DO THIS WITHOUT DRIVING THE JUSTICES BLIND CRAZY OR BOTH FROM OVERWORK PERHAPS THE COURT SHOULD TRY THE FOLLOWING FORMULA CIRCULATE TO THE JUSTICES EACH WEEK A NUMBER OF CERT PETITIONS ENOUGH TO REQUIRE A FULL DAY'S ADMITTEDLY TEDIOUS WORK BY EACH JUSTICE THEN ON THE HEELS OF THESE INDIVIDUAL REVIEWS THE JUSTICES COULD ASSIGN A CLERK TO DO FOLLOWUP WORK INCLUDING PREPARATION OF A FULLLENGTH MEMO REFLECTING MORE DETAILED RESEARCH AND REFLECTION NO POOLING OF INFORMATION OR SHARING OF WORK PRODUCT WOULD EXIST UNDER THIS MANAGEMENT SYSTEM THE REASON IS FUNDAMENTAL JUDGING SHOULD NOT BE JUST ANOTHER EFFICIENCYDRIVEN JOINT VENTURE THIS BACKTOBASICS SUGGESTION WILL DOUBTLESS BE VIEWED WITHIN THE COURT AND PERHAPS ELSEWHERE AS UNWORKABLE OR UNNECESSARY FOR SKEPTICS I OFFER A MORE MODEST SUGGESTION KEEP THE BOTTLENECK BUT BREAK UP THE CURRENT MONOPOLY INTO TWO OR MORE EQUALSIZED UNITS COMPETING WITH ONE ANOTHER ACCOMPANIED BY SAFETY CHECKS THE BEST CHECK WOULD BE A QUICK INITIAL LOOK OR SCREENING OF CERT PETITIONS BY THE INDIVIDUAL JUSTICES THEMSELVES THIS PROCESS COULD BE COMPLETED IN ADVANCE OF THE ARRIVAL OF THE POOL MEMOS IN CHAMBERS WITH THE JUSTICE THEN DETERMINING BASED ON HIS OR HER OWN REVIEW AND THE POOL MEMO WHETHER ADDITIONAL RESEARCH OR ANALYSIS SHOULD BE DONE BY AN INHOUSE ELBOW CLERK EITHER OF THESE OPTIONS WOULD CREATE A PROCESS THAT IS ENRICHED AND TEMPERED BY THE WISDOM EXPERIENCE AND MATURITY OF THE JUSTICES THEMSELVES IT IS AFTER ALL THE JUSTICES NOT THEIR CLERKS TO WHOM THE NATION LOOKS FOR CAREFUL THOUGHTFUL AND SOBER JUDGMENT MR STARR A FORMER FEDERAL JUDGE WAS PRESIDENT BUSH'S SOLICITOR GENERAL SEE RELATED LETTERS LETTERS TO THE EDITOR FAIR USE DOCTRINE IN COMMERCIAL CONTEXT WSJ OCT 28 1993 9310130087 9310280069 YY93 MM11 9311110164 931111 ECONOMY ECONOMISTS SEE HIGHER FOOD INFLATION AS GRAIN STOCKPILES SHRINK IN MIDWEST BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO ECONOMISTS ARE RAISING FOOD INFLATION FORECASTS FOR 1994 IN THE WAKE OF A GOVERNMENT REPORT THAT THE MIDWEST CROP DISASTER IS SHRINKING GRAIN STOCKPILES TO PRECARIOUSLY LOW LEVELS DONALD RATAJCZAK AN INFLATION FORECASTER AT GEORGIA STATE UNIVERSITY SAID HE INCREASED HIS FORECAST FOR FOOD INFLATION NEXT YEAR BY HALF A PERCENTAGE POINT TO 3 WHICH WOULD BE THE HIGHEST RATE IN FOUR YEARS THAT FORECAST HOWEVER IS BASED ON US FARMERS PRODUCING BUMPER CROPS NEXT YEAR WHICH SOME AGRICULTURAL SCIENTISTS SAY WILL BE DIFFICULT BECAUSE EXCESSIVE SUMMER RAIN DAMAGED MUCH OF THE MIDWEST'S MOST FERTILE LAND BY SOME ESTIMATES TWO MILLION TO FOUR MILLION ACRES OF LAND ARE STILL SO WATERLOGGED THEY WILL BE HARD TO PLANT NEXT SPRING CONSECUTIVE CROP DISASTERS ARE RARE IN THE MIDWEST BUT ECONOMISTS ARE EDGY BECAUSE THE US CORN AND SOYBEAN RESERVES THAT CUSHION LIVESTOCK PRODUCERS AND FOOD COMPANIES FROM POOR CROPS ARE BEING DRAWN DOWN TO THEIR LOWEST LEVELS SINCE THE MID1970S OUR SHOCK ABSORBERS ARE GONE SAID MR RATAJCZAK WE CAN'T HAVE ANY MISSTEPS NEXT YEAR SOME OTHER ECONOMISTS FIGURE PRIVATELY THAT FOOD PRICES COULD CLIMB AT A 6 ANNUAL RATE BY LATE NEXT YEAR IF US HARVESTS FALTER AGAIN FOOD PRICES ARE EXPECTED TO CLIMB 2 THIS YEAR THE AGRICULTURE DEPARTMENT ON TUESDAY SAID IT EXPECTS THE CORN HARVEST UNDERWAY ACROSS THE MIDWEST TO SHRINK 314 TO 650 BILLION BUSHELS FROM LAST YEAR THE SOYBEAN CROP WAS PEGGED AT 183 BILLION BUSHELS DOWN 16 FROM LAST YEAR THE REVISED MONTHLY FORECAST IGNITED ONE OF THE MOST POWERFUL GRAIN PRICE RALLIES SO FAR THIS YEAR IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR DECEMBER DELIVERY JUMPED ITS DAILY PERMISSIBLE LIMIT OF 12 CENTS A BUSHEL TO SETTLE AT A LIFEOFCONTRACT HIGH OF 2735 A BUSHEL THE SOYBEAN CONTRACT FOR NOVEMBER DELIVERY SURGED 77 OR 485 CENTS A BUSHEL TO SETTLE AT 679 A BUSHEL OAT AND WHEAT PRICES ALSO SOARED UNTIL NOW THE GRAIN MARKETS HAD LARGELY SHRUGGED OFF THE DAMAGE CAUSED BY THE SUMMER FLOODS BECAUSE EXPORT DEMAND FOR US CROPS IS WEAK GRAIN PRICES ARE ONLY RALLYING BECAUSE THE HARVESTS ARE SO SMALL THAT ANEMIC EXPORTS DON'T MATTER THE US CORN HARVEST IS NOW EXPECTED TO BE ABOUT THE SIZE OF DOMESTIC USE AND MUCH OF THE CROP IS OF POOR QUALITY THE GOVERNMENT HAD TO CUT ITS CORN HARVEST ESTIMATE FOR FIVE CONSECUTIVE MONTHS FOR GRAIN ANALYSTS TO PREDICT THAT CORN PRICES COULD HIT A HEFTY 3 A BUSHEL THIS WINTER THE CROP IS NOW SEEN SHRINKING ABOUT THREE BILLION BUSHELS FROM LAST YEAR A ONEBILLIONBUSHEL CUT DIDN'T DO MUCH A TWOBILLIONBUSHEL CUT DIDN'T DO MUCH SAID DAVID C NELSON A STOCK ANALYST AT NATWEST SECURITIES THE THIRD BILLIONBUSHELCUT IS FINALLY DOING SOMETHING TO PRICES THE GOVERNMENT'S CROP FORECAST WAS ALSO FELT ON WALL STREET SOME STOCK ANALYSTS ARE MULLING WHETHER TO SHAVE THEIR EARNINGS ESTIMATES FOR COMMODITY PROCESSING COMPANIES SUCH AS OMAHA NEBBASED CONAGRA INC AND DECATUR ILLBASED ARCHERDANIELSMIDLAND CO CONAGRA FATTENS ROUGHLY 15 OF THE CATTLE SLAUGHTERED BY ITS MEATPACKING UNIT AND GRAINBASED FEED IS A LARGE PART OF THE EXPENSE OF RAISING LIVESTOCK ADM HAS A HARD TIME PASSING ALONG THE HIGHER COSTS OF MAKING ETHANOL FROM CORN BECAUSE THE FUEL COMPETES WITH WHOLESALE GASOLINE PRICES THE STOCKS OF SOME SEED AND FERTILIZER COMPANIES JUMPED ON SPECULATION THAT THE AGRICULTURE DEPARTMENT WILL ENCOURAGE FARMERS TO PLANT FENCE ROW TO FENCE ROW NEXT YEAR TO REPLENISH SUPPLIES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING IMC FERTILIZER GROUP INC ROSE 225 TO 37875 IN NASDAQ STOCK MARKET TRADING SEEDCORN CONCERN PIONEER HIBRED INTERNATIONAL INC ROSE 250 TO 3650 A SHARE THE STOCK OF ITS MAJOR COMPETITOR DEKALB GENETICS CORP CLIMBED 225 A SHARE TO CLOSE AT 3075 BECAUSE OF THE CROP DISASTER THE AGRICULTURE DEPARTMENT IS PREDICTING THAT ONLY 881 MILLION BUSHELS OF CORN WILL BE AVAILABLE BY THE TIME OF THE 1994 HARVEST WHICH WOULD BE THE FIRST TIME THE SOCALLED ENDING STOCKPILE HAS SLIPPED BELOW ONE BILLION BUSHELS SINCE 1977 THE FARM BELT USUALLY REBOUNDS QUICKLY FROM CROP DISASTERS BUT PREVIOUS ONES WERE MOSTLY CAUSED BY DROUGHTS WHICH DO MUCH LESS DAMAGE TO THE SOIL THAN EXCESSIVE PRECIPITATION AND FLOODING THE STEADY RAINFALL LEACHED NUTRIENTS FROM THE SOIL AND THE POUNDING COMPACTED THE SURFACE WE'VE NEVER HAD A YEAR LIKE THIS SAID GARREN BENSON AN IOWA STATE UNIVERSITY AGRONOMIST WE ARE FACING A LOT OF UNKNOWNS 9311110163 931111 ELJER SETTLES SUIT WITH KOHLER DALLAS ELJER INDUSTRIES INC SAID IT REACHED A SETTLEMENT WITH CLOSELY HELD KOHLER CO IN A PATENT INFRINGEMENT SUIT THAT KOHLER IN KOHLER WIS FILED AGAINST ELJER IN APRIL TERMS WEREN'T DISCLOSED BOTH COMPANIES MAKE PLUMBING PRODUCTS IN THE LAWSUIT FILED IN A FEDERAL COURT IN MILWAUKEE KOHLER ACCUSED ELJER OF COPYING CERTAIN OF ITS PATENTED PLUMBING DESIGNS AND COLORS AS WELL AS CERTAIN ADVERTISING AND SALES MATERIALS KOHLER HAD SOUGHT AN INJUNCTION AND UNSPECIFIED DAMAGES 9311110162 931111 WHO'S NEWS WILLIS CORROON CORP WILLIS CORROON CORP NASHVILLE TENN MARK E REAGAN 44 YEARS OLD WAS NAMED TO THE NEW POST OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WILLIS CORROON CONSTRUCTION A SUBSIDIARY MR REAGAN'S PREVIOUS POSITION WAS WITH AMERICAN INTERNATIONAL GROUP WHERE HE WAS PRESIDENT OF ITS BOND DIVISION 9311110161 931111 INTERNATIONAL DANISH FIRMS' ORDERS DROP COPENHAGEN NEW ORDERS TO DANISH INDUSTRIES FELL 3 IN SEPTEMBER FROM A YEAR EARLIER ACCORDING TO DANMARKS STATISTIK THE DANISH STATISTICAL AGENCY NEW EXPORT ORDERS WERE DOWN 2 WHILE ORDERS FROM THE DOMESTIC MARKET WERE DOWN 4 9311110160 931111 WHY NAFTA IS GOOD FOR I SUPPORT THE NORTH AMERICAN FREE TRADE AGREEMENT FOR ONE REASON MORE JOBS FOR MICHIGAN WORKERS THE STATE'S PREMIER INDUSTRY THE AUTO INDUSTRY WILL ESPECIALLY BENEFIT SO FAR THIS YEAR OF THE 45 MILLION VEHICLES THAT GENERAL MOTORS HAS ASSEMBLED IN THE US A GRAND TOTAL OF THREE HAVE BEEN SENT TO MEXICO IF CONGRESS RATIFIES NAFTA GM PROJECTS EXPORTS TO MEXICO TO RISE TO 20000 VEHICLES NEXT YEAR AND TO 60000 ANNUALLY AFTER FIVE YEARS OTHER MICHIGAN INDUSTRIES THAT WILL BENEFIT FROM NAFTA INCLUDE OFFICE FURNITURE AGRICULTURE AND AUTO SUPPLIES ALREADY MY STATE'S EXPORTS TO MEXICO ARE SUPPORTING SOME 26000 JOBS AND OUR WORKERS ARE SELLING THEIR PRODUCTS SOUTH OF THE BORDER AT A RATE OF 165000 AN HOURAND THAT IS WITH TARIFFS AND QUOTAS IN PLACE ELIMINATING THESE TARIFFS AND QUOTAS WILL CREATE MORE JOBS AND OPPORTUNITY THAT IS WHY NAFTA IS SUPPORTED BY THE SMALL BUSINESS ASSOCIATION OF MICHIGAN MICHIGAN FARM BUREAU MICHIGAN MANUFACTURERS ASSOCIATION MICHIGAN CHAMBER OF COMMERCE GREATER DETROIT CHAMBER OF COMMERCE MICHIGAN INTERNATIONAL TRADE COALITION AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION AND MANY JOB PROVIDERS ACROSS THE STATE WE IN TEXAS HAVE UNDERSTOOD FOR A LONG TIME THAT THE USMEXICO BORDER IS NOT THE BACK DOOR TO THE US BUT OUR FRONT DOOR TO A NEW WORLD OF TRADE AND OPPORTUNITY NAFTA WILL PROVIDE AN OPENING FOR INCREASED TRADE WHICH WILL TRANSLATE INTO 182000 NEW JOBS FOR TEXAS MEXICO IS TEXAS'S LARGEST TRADING PARTNER BY THE TIME NAFTA IS FULLY PHASED IN MEXICO WILL BE THE US'S LARGEST TRADING PARTNER WITH NAFTA AMERICAN GOODS WILL BECOME EVEN MORE ATTRACTIVE BECAUSE THE TARIFFS ATTACHED TO FOREIGN GOODS WILL NO LONGER APPLY TO US GOODS IF YOU PLUG IT IN DRIVE IT OR RUN IT OVER A COMPUTER NETWORK OR FIBER OPTIC LINE IT CAN FIND A BUYER IN MEXICO NAFTA IS THE FIRST AND BEST HOPE FOR THE ENVIRONMENT ALONG THE USMEXICO BORDER ENVIRONMENTAL PROBLEMS HAVE EXISTED ALONG THE BORDER FOR A LONG TIME DUE TO GENERATIONS OF NEGLECT POLLUTION KNOWS NO POLITICAL BOUNDARIES NAFTA WITH THE SIDE AGREEMENTS AND THE FINANCING PACKAGE IS OUR ONLY HOPE OF BRINGING THE US AND MEXICO TOGETHER TO SOLVE COMMON PROBLEMS NAFTA OFFERS TREMENDOUS OPPORTUNITIES FOR CALIFORNIA OUR TRADE WITH MEXICO IS ALREADY BOOMING QUADRUPLING SINCE 1986 TO CREATE 100000 JOBS FOR CALIFORNIA WORKERS NAFTA WILL FURTHER THAT GROWTH AND CREATE AT LEAST 40000 ADDITIONAL JOBS AFTER NAFTA IS APPROVED CALIFORNIA'S TOUGHEST COMPETITORS WILL STILL BE THE JAPANESE AND THE EUROPEANS BUT THE ELIMINATION OF TARIFFS WILL GIVE US A 10 TO 20 COST ADVANTAGE OVER OUR COMPETITORS FOR MEXICO'S 80 MILLION CUSTOMERS AND IT WILL GIVE US A LEG UP IN THE REST OF LATIN AMERICA ALSO CALIFORNIA'S EXPORTS TO MEXICO WILL BE OF THE HIGH VALUEADDED VARIETY EXPANDING HIGHTECH MANUFACTURING JOBS WHICH ARE NEEDED TO OFFSET THOSE LOST BY DEEP CONGRESSIONAL CUTS IN DEFENSE SPENDING BUT IF NAFTA FAILS AND THOSE NEW JOBS ARE LOST TO MEXICO SO THAT ITS ECONOMY AS NOW CANNOT EMPLOY ITS PEOPLE MEXICO'S SAFETY VALVE OF ILLEGAL IMMIGRATION TO THE US WILL BE UNDER EVEN GREATER PRESSURE THAN IT IS TODAY GOVERNORS PROBABLY KNOW BETTER THAN ANYONE THE CHALLENGES OF ATTRACTING AND MAINTAINING BUSINESSES IN THEIR STATES THAT THE OVERWHELMING MAJORITY OF THE NATION'S GOVERNORS FAVOR NAFTA SPEAKS VOLUMES TO THE BENEFITS OF THE TREATY'S PASSAGE TRAVELING WORLDWIDE SEEKING BUSINESS FOR MARYLAND I SEE OTHER REGIONS FORMING TRADING BLOCS NAMELY ASIA AND EUROPE MAKE NO MISTAKE ABOUT IT IF THE US DOESN'T FORM A TRADING BLOC WITH CANADA AND MEXICO AND EVENTUALLY CENTRAL AMERICA AND SOUTH AMERICA JAPAN OR OTHER NATIONS WILL NAFTA MEANS CREATING JOBS NOT LOSING THEM MARYLAND'S EXPORTS TO CANADA AND MEXICO HAVE RISEN 37 IN FIVE YEARS WITH MANUFACTURED EXPORTS ALONE SUPPORTING 21000 JOBS FIGURES THAT STAND TO INCREASE WITH REDUCED TRADING BARRIERS AMONG THE THREE COUNTRIES MARYLAND COMPANIES LOOK TO NAFTA TO EXPAND TRADE IN EVERY AREA FROM HOUSING AND PROCESSED FOODS TO ENVIRONMENTAL TECHNOLOGY AND POWER TOOLS FINALLY MOST NAFTA OPPONENTS MAKE THEIR CASE BY DENIGRATING MEXICO AND IT'S TIME TO GET RID OF THE MYTHS IN A VISIT THIS SUMMER I SAW A COUNTRY WITH A GROWING ECONOMY AND INCREASING CONCERN FOR ITS RESIDENTS' QUALITY OF LIFE INCLUDING A CLEANER ENVIRONMENT IT'S A THRIVING MARKET OF 80 MILLION PEOPLE READY TO DO BUSINESS WITH US COMPANIES COMPANIES WHOSE CHIEF EXECUTIVES TELL ME THEY WOULD INCREASE THEIR US PRODUCTION TO MEET DEMANDS FOR NEW GOODS AND SERVICES TO THE SOUTH ONE OF NORTH AMERICA'S OLDEST TRADE ROUTES IS EL CAMINO REAL THE 400YEAROLD TRAIL BUILT BY THE SPANISH FROM MEXICO CITY TO TAOS NM NAFTA WILL HELP US RESTORE THAT TRADE ROUTE USING MORE MODERN MEANS OF TRANSPORTATION AND COMMUNICATION TO THE BENEFIT OF CITIZENS ON BOTH SIDES OF WHAT IS NOW AN INTERNATIONAL BORDER I HAVE MET TWICE DURING MY CURRENT TERM WITH MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI AND I HAVE COME AWAY CONVINCED THAT HE IS SERIOUS ABOUT REFORMING HIS COUNTRY'S ECONOMY RAISING ITS STANDARD OF LIVING AND IMPROVING ITS ENVIRONMENT I BELIEVE IT IS IMPORTANT FOR US TO GIVE HIM ENCOURAGEMENT AS A BORDER STATE WE ARE CONCERNED ABOUT SOCIAL AND ENVIRONMENTAL CONDITIONS ALONG THE BORDER WITH MEXICO THE FREE TRADE AGREEMENT DID NOT CAUSE THOSE CONDITIONS AND THOSE CONDITIONS SHOULD NOT BECOME AN EXCUSE TO OPPOSE THE TREATY NAFTA GIVES US A NEEDED MECHANISM TO WORK WITH MEXICO AND WITH CANADA TO TRY TO SOLVE OUR COMMON PROBLEMS MY ADMINISTRATION SUPPORTS NAFTA BECAUSE WE ARE IN THE BUSINESS OF CREATING JOBS THE PASSAGE OF NAFTA WILL MEAN JOBS FOR OHIOANS BECAUSE EXPORTS MEAN JOBS HIGHPAYING GOODQUALITY JOBS THE STATE OF OHIO PROVIDES PRODUCTS AND SERVICES THAT MEXICO DEMANDS IN 1992 MEXICO WAS OHIO'S FIFTHLARGEST EXPORT MARKET MEXICO MAY SOON PASS BRITAIN AND BECOME OHIO'S FOURTHLARGEST TRADING PARTNER OHIO'S EXPORTS TO MEXICO HAVE AVERAGED AN ANNUAL GROWTH RATE OF 263 DURING THE 1990S AND HAVE INCREASED A TOTAL OF 188 OVER THE PAST SIX YEARS THE GROWING MEXICAN MARKET WILL INCREASE OHIO EXPORTS IN SOME OF OUR MAJOR INDUSTRIES INDUSTRIAL MACHINERY AND COMPUTERS CHEMICALS RUBBER AND PLASTIC PRODUCTS ELECTRICAL AND ELECTRONIC EQUIPMENT AND TRANSPORTATION EQUIPMENT WE ALSO EXPECT INCREASES IN MEXICAN PURCHASES IN AUTOMOTIVE AND AGRICULTURAL PRODUCTS AS WELL AS IN THE SERVICE SECTORS OF FINANCE INSURANCE CONSTRUCTION AND ENGINEERING SINCE 1987 AN ESTIMATED 61300 EXPORTRELATED JOBS HAVE BEEN CREATED IN OHIO THESE EXPORTRELATED JOBS ARE AMONG THE HIGHESTPAYING IN THE STATE PAYING MORE THAN THE AVERAGE US WAGE WITHIN OHIO THIS IS EVIDENCED BY HOURLY WAGE RATES OF 1412 FOR THE CHEMICAL INDUSTRY AND 1733 IN THE TRANSPORTATION FIELD THOSE MEMBERS OF CONGRESS WHO CAST YES VOTES ON NAFTA ARE SUPPORTING THE GROWTH OF OHIO'S ECONOMY AND GROWTH IN THE TYPES OF QUALITY JOBS OF THE FUTURE THAT WE WANT IN OHIO THE REASON FLORIDIANS SHOULD SUPPORT NAFTA IS SIMPLE IT MEANS THOUSANDS OF NEW JOBS FOR OUR PEOPLE ALL ALONG OUR ONE CONCERN WITH NAFTA WAS THE EFFECT IT WOULD HAVE ON OUR AGRICULTURAL INTERESTS THAT CONCERN WAS ERASED BY THE SIDE AGREEMENTS ON CITRUS SUGAR AND FRUITS AND VEGETABLES THAT HAVE NOW BEEN SECURED THE TROUBLING ISSUES REGARDING NAFTA HAVE BEEN REMOVED IT'S TIME NOW TO RATIFY THE AGREEMENT SO THAT FLORIDA AND AMERICA MAY BEGIN TO ENJOY THE POSITIVE ECONOMIC BENEFITS IT WILL BRING HAVING WORKED FOR THE PAST THREE YEARS TO CREATE MORE JOBS IN AN INDUSTRIAL STATE I UNDERSTAND THE ANXIETY SOME AMERICANS FEEL ABOUT LOSING JOBS OVERSEAS BUT IN REALITY NAFTA MAY BE MASSACHUSETTS'S BEST EXPORT VEHICLE SINCE THE CLIPPER SHIP THE MEN AND WOMEN MANUFACTURING AND PACKAGING RAZOR BLADES IN GILLETTE'S SOUTH BOSTON FACILITY CAN EXPECT MORE WORK ONCE MEXICO'S 85 MILLION CONSUMERS ARE FREE TO BUY USMADE PERSONALCARE PRODUCTS THE 60000 WORKERS IN MASSACHUSETTS'S TELECOMMUNICATIONS INDUSTRY AVERAGE WAGE NEARLY 40000 WILL MANUFACTURE MORE CABLE AND OTHER HIGHTECH EQUIPMENT ONCE MEXICO'S 6 BILLION TELECOMMUNICATIONS MARKET IS OPEN TO COMPETITION THE ENGINEERS IN MASSACHUSETTS'S 1500 SOFTWARE COMPANIES WILL DEORE DISKS FOR MEXICO'S GROWING SOFTWARE MARKET THANKS TO LOWER TARIFFS AND EXPANDED INTELLECTUAL PROPERTY PROTECTION AND THE LINE WORKERS AT QUAKER FABRICS IN FALL RIVER WHICH ALREADY EXPORTS TEXTILES TO MEXICO CAN EXPECT MORE ORDERS FOR UPHOLSTERY FABRIC ONCE MEXICAN TARIFFS FALL LET'S FACE FACTS CHAMPIONS OF AMERICAN WORKERS FROM MASSACHUSETTS'S TIP O'NEILL TO CALIFORNIA'S RONALD REAGAN WOULD NOT SUPPORT NAFTA IF IT WAS A THREAT TO AMERICAN JOBS NAFTA WILL ONLY CONTINUE THE MOMENTUM THAT HAS SEEN MASSACHUSETTS'S JOBCREATING EXPORTS TO MEXICO INCREASE 33 IN THE FIRST HALF OF 1993 AS GOVERNOR OF WISCONSIN MY NUMBER ONE PRIORITY IS TO KEEP OUR ECONOMY STRONG AND GROWING NAFTA WILL DO THIS THE UNIVERSITY OF WISCONSIN JUST COMPLETED A STUDY ON HOW NAFTA WILL AFFECT OUR ECONOMY AND THE BOTTOM LINE IS THIS NAFTA MEANS JOBS FOR WISCONSIN 20000 JOBS IN FACT AND THAT'S A CONSERVATIVE ESTIMATE THAT MEANS 20000 PEOPLE IN WISCONSIN WITH HIGHPAYING JOBS TO SUPPORT THEIR FAMILIES AND IMPROVE THEIR QUALITY OF LIFE WHAT GOVERNOR WOULDN'T SUPPORT THAT WISCONSIN'S DIVERSE ECONOMY STANDS TO BENEFIT ENORMOUSLY FROM A TRADE AGREEMENT WITH MEXICO SINCE 1987 WISCONSIN EXPORTS OF LIVESTOCK TO MEXICO ARE UP MORE THAN 600 EXPORTS OF PAPER PRODUCTS ARE UP 1600 AND LUMBER AND WOOD PRODUCTS ARE UP 2600 NAFTA WILL REMOVE THE TARIFFS CURRENTLY IMPOSED ON THESE AND OTHER WISCONSIN PRODUCTS GOING TO MEXICO MEANING THAT OPPORTUNITIES FOR WISCONSIN BUSINESSES AND WISCONSIN WORKERS WILL ONLY CONTINUE TO GROW NAFTA MEANS JOBS AND THAT'S WHY IT IS GOOD FOR WISCONSIN DURING 1992 ARIZONA'S EXPORTS TO MEXICO DOUBLED TO 18 BILLION FROM 939 MILLION MAKING OUR STATE MEXICO'S THIRDLARGEST SOURCE OF IMPORTS AT THE SAME TIME WE EXPERIENCED INCREASES IN SEVERAL OTHER AREAS OF OUR ECONOMY WHILE MANY WOULD HAVE THE PUBLIC BELIEVE THAT NAFTA IS A THREAT TO THE ECONOMIC WELLBEING OF THE US WE HAVE PROVED IN ARIZONA THAT IT CAN BE A SUBSTANTIAL TOOL FOR ECONOMIC RECOVERY WE HAVE PROVED THAT INTERNATIONAL TRADE IS AN EFFECTIVE WAY TO BOLSTER EXISTING DOMESTIC INDUSTRIES THAT IT MEANS GREATER PRODUCTION AND MORE JOBS RATHER THAN AS NAFTA CRITICS CLAIM THE DEATH OF US BUSINESS FOR EXAMPLE ARIZONA'S STATEWIDE UNEMPLOYMENT RATE IS 58 WELL BELOW THE NATIONAL AVERAGE THIS STATISTIC COMES ON THE HEELS OF OUR MOST LUCRATIVE YEAR OF INTERNATIONAL TRADE THE GOALS OF NAFTA AND THE GOALS OF US BUSINESS AND WORKERS ARE COMPATIBLE FREE AND OPEN TRADE BETWEEN THE US AND ITS NEIGHBORS IS A FORCE THAT CANNOT AND SHOULD NOT BE CONTAINED THE LIBERTY AND PROSPERITY OF MANKIND ARE SUSTAINED BY MARKETS IN OUR TIME THOSE MARKETS TRANSCEND NOT ONLY BORDERS BUT CONTINENTS AMERICAN SOVEREIGNTY LIKE ALL CHERISHED ASPECTS OF OUR NATIONAL CHARACTER IS BEST PROTECTED THROUGH FAITH IN THE FUTURE AND NOT FEAR OF ANOTHER'S WELLBEING THE POWER OF FREE MARKETS IS GREAT ENOUGH TO LIFT ALL OF NORTH AMERICA TO A NEW LEVEL OF PROSPERITY 9311110158 931111 WHO'S NEWS MCN CORP MCN CORP DETROIT PATRICK J SCULLION PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS NATURALGAS SUPPLIER'S MCN INVESTMENT CORP UNIT WILL RETIRE JAN 1 MR SCULLION 60 YEARS OLD WILL BE SUCCEEDED BY RAI P BHARGAVA 46 WHO IS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THE SUBSIDIARY 9311110156 931111 WHO'S NEWS GERBER PRODUCTS CO GERBER PRODUCTS CO FREMONT MICH C SIMON THOMPSON FORMERLY PRESIDENT AND GROUP TREASURER OF TRAFALGAR HOUSE GROUP FINANCE PLC WAS NAMED VICE PRESIDENT AND TREASURER OF THIS MAKER OF BABY FOOD AND CONSUMER PRODUCTS HE SUCCEEDS MATTHEW OKKEMA WHO RETIRED 9311110155 931111 SOUTH KOREAN AUTO OUTPUT SEOUL SOUTH KOREA SOUTH KOREAN AUTO MAKERS REACHED A MONTHLY PRODUCTION RECORD OF 183000 UNITS IN OCTOBER UP 12 FROM THE YEAREARLIER MONTH THE MINISTRY OF TRADE INDUSTRY AND ENERGY SAID THE OCTOBER OUTPUT BRINGS THE JANUARYOCTOBER TOTAL TO 1630000 AUTOS UP 16 FROM THE SAME PERIOD LAST YEAR OFFICIALS SAID THE PREVIOUS MONTHLY HIGH WAS SET IN MARCH AT 180000 UNITS 9311110154 931111 LEISURE & ARTS BULL ELK MAKE ROCKIES RESOUND WITH SONGS OF RUT BY MICHAEL PEARCE CRAIG COLO IT'S A CENTURIESOLD SONG OF THE AUTUMN ROCKIES THAT ONCE HEARD CAN NEVER BE FORGOTTEN THOUGH IT'S CALLED A BUGLE IT RESEMBLES A PRIMITIVE FLUTE AS ITS SWEET NOTES RISE AND THEN FALL IN THE CRISP HIGHCOUNTRY AIR FROM A MILE AWAY IT HAD SEEMED AN EERIE YET RELAXING SOUND BUT NOW WITHIN 30 YARDS THE SOURCE OF THE SOUNDS AND I WERE ANYTHING BUT RELAXED IN FRONT OF ME 800 POUNDS OF BULL ELK WAS GIVING ME A SHOW UNPARALLELED IN A QUARTERCENTURY OF ROAMING AMERICA'S BACKCOUNTRY THE BULL WAS FURIOUS SHOWING A RAGE THAT WOULD HAVE DONE A CORNERED GRIZZLY PROUD THE ELK WAS NERVOUSLY RUNNING BACK AND FORTH ALONG A NARROW TRAIL BELOW ME THROWING FORTH A STEADY STREAM OF BUGLES THAT SOUNDED MORE LIKE MANIACAL SCREAMS WITH A VOLUME THAT I FELT AS WELL AS HEARD AND THE BULL WAS USING MORE THAN JUST SOUND TO RELAY HIS ANGER ANTLERS THAT STRETCHED NEARLY TO HIS RUMP WITH SIX DAGGERLIKE POINTS TO A SIDE WERE REPEATEDLY RAKED ACROSS ASPEN SAPLINGS AND SCRUBBY OAKS WHEN ONE GNARLED TREE OFFERED PARTICULAR RESISTANCE THE BULL RESPONDED WITH A FURY THAT SPLINTERED WRISTTHICK BRANCHES INTO MATCHSTICKS THOUGH THE SPECIMEN WAS OBVIOUSLY HAVING A BAD DAY THINGS ARE PRETTY GOOD FOR HIS ENTIRE SPECIES LIKE MUCH OF AMERICA'S WILDLIFE ROCKY MOUNTAIN ELK HAVE BEEN ON A ROLLERCOASTER POPULATION RIDE SINCE THE COMING OF THE MAYFLOWER ONCE WIDESPREAD FROM COAST TO COAST THE BIG MEMBERS OF THE DEER FAMILY SUFFERED GREAT LOSSES FROM DECADES AND CENTURIES OF UNCONTROLLED SLAUGHTER PIONEERS KILLED THEM FOR THEIR MEAT THEIR HIDES AND EVEN SIMPLY FOR THEIR POLISHED DECORATIVE TEETH BIOLOGISTS ESTIMATE THE ELK'S LOW POINT TO HAVE COME AROUND 1900 WHEN JUST 50000 ANIMALS SURVIVED IN SECLUDED POCKETS OF ROUGH COUNTRY FINALLY THE WASTE WAS STOPPED AND WISE GAME MANAGEMENT BEGAN ONCE AGAIN THE PROVEN EQUATION OF CONTROLLED HUNTING PLUS THE WISE INVESTMENT OF LICENSE FEES EQUALLED A WILDLIFE COMEBACK EXCEPT FOR MINOR DIPS RELATED TO WINTER STARVATION ELK POPULATIONS HAVE BEEN CLIMBING FOR DECADES TODAY THERE ARE MORE ELK ROAMING THE ROCKIES THAN AT ANY OTHER TIME IN MODERN HISTORY UNFORTUNATELY THAT UPWARD TREND IS BECOMING HARDER AND HARDER TO SUSTAIN THANKS TO THE CHIEF FOE OF 20THCENTURY WILDLIFE ENCROACHMENT BY HUMANS AND LOSS OF HABITAT THOUGH ELK POPULATIONS ARE CURRENTLY EXCELLENT THE OVERALL PICTURE HAS SOME PROBLEMS SAID DAN CROCKETT DIRECTOR OF PUBLICATIONS FOR THE ROCKY MOUNTAIN ELK FOUNDATION ELK HABITAT IS IN PRETTY SERIOUS DECLINE THEY'RE LOSING ABOUT 35000 ACRES A YEAR JUST IN COLORADO WE'RE LOSING THE VAST MAJORITY OF THE RANGE TO HOMES MORE AND MORE PEOPLE ARE WANTING A FEW ACRES AND A HOUSE IN THE MOUNTAINS THEY'RE USUALLY BUILDING THEM DOWN LOW RIGHT WHERE THE MIGRATORY ELK WINTER THE ELK ARE BEING FORCED OUT OF PLACES THEY NEED FOR THEIR MOST CRITICAL 10 TO 12 WEEKS OF THE YEAR SOME PEOPLE ARE FIGHTING TO SAVE THE REMAINING LAND FOR ELK STATE GAME AGENCIES AND THE RMEF ARE INVESTING HEAVILY IN ELK HABITAT IN ITS BRIEF DECADE OF EXISTENCE THE RMEF AN ORGANIZATION LARGELY FUNDED BY SPORTSMEN HAS HELPED RAISE OVER 30 MILLION TO PROTECT AND ENHANCE OVER 12 MILLION ACRES OF CRUCIAL HABITAT ONE OF ITS MOST RECENT SUCCESS STORIES IS THE ACQUISITION OF ALMOST 9000 ACRES OF PRIME WINTERING RANGE KNOWN AS THE NORTHERN YELLOWSTONE ELK HERD PROJECT ALONG WITH THE US FOREST SERVICE US FISH & WILDLIFE SERVICE AND OTHER GROUPS AND AGENCIES THE RMEF HAS GUARANTEED A COLDWEATHER HOME FOR ELK IN A TRENDY AREA THAT WAS SPROUTING HOUSES AND CONDOS FASTER THAN DANDELIONS AFTER A SPRING RAIN THOUGH MONUMENTAL THE PROJECT CAN ONLY BE THE TIP OF THE ICEBERG IF ELK ARE TO COMPETE WITH AN EXPANDING HUMAN POPULATION LUCKILY THE ANIMALS THEODORE ROOSEVELT REFERRED TO AS THE NOBLEST OF THE DEER TRIBE HAVE AN ADDICTING AND DEDICATING AFFECT ON THEIR PURSUERS IT GETS IN YOUR BLOOD SAID BRADLEY HARRIS A NATIONALLY KNOWN BIGGAME EXPERT AND PRODUCT DEVELOPER FOR LOHMAN GAME CALLS OF NEOSHO MO A LOT OF IT IS SIMPLY WHERE THEY LIVE THE BEAUTY OF ELK COUNTRY IS UNREAL IF YOU HIT IT RIGHT AND THE ASPEN LEAVES HAVE TURNED GOLD IT'S BEYOND DESCRIPTION ACCORDING TO MR HARRIS MY GUIDE ON THE TRIP THE QUARRY WOULD BE IMPRESSIVE NO MATTER WHERE THEY LIVED WHAT AN IMPRESSIVE IMPRESSIVE ANIMAL SAID THE MAN WHO'S SEEN THOUSANDS OF THEM THEIR PHYSICAL SIZE UP TO 1000 POUNDS THEIR MASSIVE ANTLERS AND THEIR LOOKS IT'S A COMPLETE PACKAGE PLUS THEY'RE SO WELL ADAPTED TO THEIR ENVIRONMENT THEY CAN SEE SMELL OR HEAR YOU FURTHER THAN YOU'D EVER BELIEVE IF THEY WANT THEY CAN COVER A LOT OF GROUND IN A HURRY IN NEAR TOTAL SILENCE I'VE SEEN HUGE BULLS RUN THROUGH THICK OAKS AND DRY LEAVES AND BARELY MAKE A SOUND IT'S INCREDIBLE FOR YEARS ELK HUNTING WAS BASICALLY A SPORT FOR THOSE WITH PLENTY OF TIME AND PHYSICAL STAMINA SUCCESSFUL TRIPS OFTEN MEANT LONG PACKTRIPS EITHER BY HORSE OR ON FOOT BACK INTO REMOTE PORTIONS OF NATIONAL FORESTS TODAY THE BEST HUNTING IS FOUND ON PRIVATE GROUNDS I'VE BEEN ON PACK TRIPS WHERE WE THOUGHT WE WERE REALLY INTO ELK IF WE SAW THEM TWO OUT OF 10 DAYS SAID MR HARRIS BUT IT'S SOMETHING TOTALLY DIFFERENT ON THESE PRIVATE RANCH HUNTS YOU NOT ONLY SEE ELK EVERYDAY YOU USUALLY SEE AND GET CLOSE TO LOTS OF THEM I'LL OFTEN SEE 100 A DAY AND THERE HAVE BEEN DAYS WHEN I SEE 200 ELK A DAY HERE THE HERE MR HARRIS WAS REFERRING TO IS A SPRAWLING RANCH OF GRASSLANDS SCRUB OAKS GOLDEN ASPENS AND PINE TREES OPERATED BY PAUL HOWARD AND HIS WHEAT RIDGE COBASED PROLINE EXCURSIONS WE OWE A LOT OF OUR SUCCESS OVER 90 FOR GUN HUNTERS TO MANAGEMENT SAID MR HOWARD WHO LEFT A 14YEAR CAREER WITH THE DENVER BRONCOS TO FOLLOW THE SIREN'S SONG OF BUGLING ELK WE MAKE SURE THE ELK HAVE PLENTY OF NATURAL COVER FOOD AND WATER AVAILABLE WE'RE ALSO CAREFUL TO STAY OUT OF SOME AREAS IT'S IMPORTANT THAT THE ELK HAVE SOME PROTECTED AREAS WE KIND OF HUNT THE EDGES AND TAKE ONLY A SMALL PERCENTAGE OF THE BULLS MR HARRIS AND I HEARD OUR FIRST BULL 17 SECONDS INTO THE HUNT AND SAW OUR FIRST ABOUT 20 MINUTES LATER IN THE DISTANCE WITH RIFLES WE'D HAVE BEEN DONE IN A MATTER OF HOURS LUCKILY WE WERE USING BOWS AND THE ACTION LASTED FOR DAYS ON OUR THIRD MORNING I WATCHED AS MR HARRIS CLEANLY TOOK A FINE BULL WITH A SINGLE WELLPLACED ARROW THE REST OF THE DAY WAS DEDICATED TO HAULING AND PROCESSING SEVERAL HUNDRED POUNDS OF EXCELLENT LEAN MEAT MY OWN VERY CLOSE ENCOUNTER CAME THE NEXT MORNING HALFWAY UP ONE OF MR HOWARD'S MOUNTAINS THAT WAS ABLAZE IN COLORFUL FALL FOLIAGE IT WAS THERE THAT MR HARRIS FOUND THE UNDISPUTED KING OF THE HILL THOUGH RELUCTANT TO LEAVE HIS HAREM OF COWS THE BIG BULL WAS SCREAMING TO THE WORLD THAT HE'D GLADLY TAKE ON ANY BULL THAT CHALLENGED HIM WHILE MR HARRIS MASTERFULLY INFURIATED THE BEAST WITH A COMBINATION OF CHALLENGING BUGLES AND SOFT COW CHIRPS I SNUCK UP A WELLWORN TRAIL THE SOUNDS OF THE BULL AND GROWING SMELL OF ELK BUILT THE SUSPENSE LIKE A HITCHCOCK THRILLER SUDDENLY THERE WAS THE BULL MAJESTIC SCREAMING AT THE TOP OF HIS HUGE LUNGS ANGRY AT THE WORLD AND HEADING MY WAY NERVES THAT HAD BEEN LIKE STEEL WHILE CLOSE TO TROPHYCLASS WHITETAIL AND MULE DEER WERE NOW NO STRONGER THAN COOKED SPAGHETTI WHEN THE ELK PASSED WITHIN 20 YARDS OF ME I DREW MY BOW PLACED MY SIGHT OVER AND CONCENTRATED LIKE NEVER BEFORE THE RELEASE OF THE ARROW WAS FOLLOWED BY A RESOUNDING CRACK THE BULL WAS GONE IN DISBELIEF I STARED AT THE ARROW THAT HAD DEADCENTERED A TINY ONEINCH THICK OAK THE ONLY THING THAT HAD BEEN STANDING BETWEEN THE TROPHY OF A LIFETIME AND ME BUT A SMILE RATHER THAN A FROWN CROSSED MY FACE AS I STOOD THERE MY PULSE BEATING THROUGH MY BODY LIKE A BASS DRUM AND MY BREATHING RATE AT AN ALLTIME HIGH I THOUGHT OF AN EARLIER PREDICTION A FRIEND HAD MADE THERE'S NO SUCH THING AS AN UNSUCCESSFUL HUNT AS LONG AS YOU'RE FINDING ELK IF YOU EVEN HEAR ONE YOU'LL GO BACK MR PEARCE IS AN OUTDOORS WRITER IN MANHATTAN KAN 9311110153 931111 JC PENNEY WILL SHIFT DEBT PLANO TEXAS JC PENNEY CO SAID IT PROVIDED FOR THE DEFEASANCE OF THE 166 MILLION PRINCIPAL AMOUNT OUTSTANDING OF ITS 9 3/8 NOTES DUE 1998 THE RETAILER SAID IT DEPOSITED WITH THE TRUSTEE FOR THE DEBENTURES ENOUGH US GOVERNMENT OBLIGATIONS TO MAKE ALL INTEREST AND PRINCIPAL PAYMENTS THROUGH FEB 1 1995 THE NOTES' FIRST REDEMPTION DATE AT THAT TIME THE NOTES WILL BE REDEEMED AT 100 OF THEIR PRINCIPAL AMOUNT THE COMPANY SAID THE TRANSACTION WOULD HAVE NO MATERIAL IMPACT ON ITS EARNINGS 9311110152 931111 HAHN AUTOMOTIVE ACQUISITION ROCHESTER NY HAHN AUTOMOTIVE WAREHOUSE INC SAID IT RECEIVED HARTSCOTTRODINO ANTITRUST CLEARANCE FOR ITS PREVIOUSLY ANNOUNCED AGREEMENT TO ACQUIRE AUTO WORKS HOLDINGS INC FOR ABOUT 13 MILLION IN CASH THE COMPANY ALSO SAID IT RECEIVED A COMMITMENT FOR 35 MILLION IN BANK FINANCING AN INCREASE OF 15 MILLION OVER ITS PRESENT CREDIT FACILITY IN CONNECTION WITH THE ACQUISITION THE EXPECTED CLOSING DATE IS NOV 29 HAHN IS A WAREHOUSE DISTRIBUTOR OF AUTOMOTIVEAFTERMARKET PARTS 9311110151 931111 WHO'S NEWS GEORGIAPACIFIC CORP GEORGIAPACIFIC CORP ATLANTA JAMES F KELLEY 51 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT LAW AND GENERAL COUNSEL OF THIS FOREST PRODUCTS COMPANY MR KELLEY SUCCEEDS DIANE DURGIN WHO LEFT IN MAY MR KELLEY IS A PARTNER IN THE PARIS OFFICE OF JONES DAY REAVIS & POGUE A CLEVELAND LAW FIRM 9311110150 931111 INTERLEAF ENTERS FUJITSU PACT WALTHAM MASS INTERLEAF INC ENTERED AN AGREEMENT UNDER WHICH ITS DOCUMENTMANAGEMENT SOFTWARE WILL BE DISTRIBUTED IN JAPAN BY FUJITSU LTD TERMS WEREN'T DISCLOSED INTERLEAF SAID ITS SOFTWARE WILL BE INTEGRATED WITH FUJITSU'S DESIGN DATABASE SPREADSHEET AND WORDPROCESSING PRODUCTS THE COMPANY SAID FUJITSU WILL INTRODUCE THE INTEGRATED SOFTWARE THIS MONTH 9311110149 931111 TECHNOLOGY & HEALTH IBM TO PROMOTE USE OF MICROSOFT SYSTEM ON POWERPC CHIP IN CHALLENGE TO INTEL BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP AND INTERNATIONAL BUSINESS MACHINES CORP SAID THEY WILL ACTIVELY PROMOTE USE OF MICROSOFT'S MOST POWERFUL OPERATING SYSTEM ON THE POWERPC MICROPROCESSING CHIP ESCALATING A CHALLENGE TO INTEL CORP UNTIL YESTERDAY SEMICONDUCTOR MAKER MOTOROLA INC WAS BELIEVED TO BE BEARING THE EXPENSE OF CREATING AND MARKETING A POWERPC VERSION OF MICROSOFT'S WINDOWS NT OPERATING SYSTEM IBM WHICH IS JOINTLY MANUFACTURING THE POWERPC CHIP WITH MOTOROLA HAD EXPRESSED LITTLE INTEREST IN OFFERING WINDOWS NT ON ITS POWERPCBASED MACHINES YESTERDAY HOWEVER IBM SAID IT WILL HELP ADAPT WINDOWS NT AND HOPES TO SELL IT ON IBM COMPUTERS BY THE SECOND HALF OF NEXT YEAR THOUGH THAT PLAN COULD WORK AGAINST SEPARATE EFFORTS TO BUILD SUPPORT FOR IBM'S OS/2 OPERATING SYSTEM MICROSOFT MEANWHILE ANNOUNCED IT WOULD MARKET THE POWERPC VERSION OF WINDOWS NT TO OTHER COMPUTER MAKERS AND SELL IT AS A PACKAGED PRODUCT IN RETAIL STORES THE SHIFTING PLANS HIGHLIGHT A CONFUSING BATTLE TO SET NEW STANDARDS FOR COMPUTER HARDWARE AND SOFTWARE UNTIL WINDOWS NT WAS RELEASED IN THE SUMMER MICROSOFT'S OPERATING SYSTEMS WERE TAILORED EXCLUSIVELY FOR INTEL'S MICROPROCESSORS THE SOFTWARE COMPANY HAS NOW ADOPTED A MORE NEUTRAL STRATEGY BESIDES INTEL WINDOWS NT ALSO WORKS WITH CHIPS FROM DIGITAL EQUIPMENT CORP AND SILICON GRAPHICS INC'S MIPS TECHNOLOGIES UNIT IBM AND MOTOROLA ARE TRYING TO BUILD A NEW COMPUTING STANDARD AROUND THE POWERPC CHIP WHICH THEY DESIGNED WITH HELP FROM MOTOROLA AND APPLE COMPUTER INC THE COMPANIES' PLAN IS TO GET ALL THE MAJOR OPERATING SYSTEMS TO WORK WITH THE NEW CHIP IT ALREADY OPERATES WITH IBM'S VERSION OF UNIX AND IS EXPECTED TO WORK NEXT YEAR WITH APPLE'S MACINTOSH OPERATING SYSTEM THE POWERPC VERSION OF WINDOWS NT IS PARTICULARLY IMPORTANT TO THE MARKETING PLANS OF MOTOROLA WHICH IS DETERMINED TO WHITTLE AWAY AT INTEL'S HUGE SHARE OF THE MICROPROCESSOR MARKET BUT IBM APPEARS TO BE TAKING ON AT LEAST HALF OF THE CONVERSION JOB INCLUDING PAYING LICENSE FEES TO MICROSOFT IBM HAS TO PAY US FOR EVERY COPY THEY SELL SAID JONATHAN LAZARUS VICE PRESIDENT OF SYSTEMS STRATEGY AT MICROSOFT IBM IS DOING THE WORK WITH HELP FROM US AND SIGNIFICANT HELP FROM MOTOROLA IBM'S SUPPORT OF WINDOWS NT WOULD SEEM TO CONTRADICT EARLIER STATEMENTS BY OFFICIALS IN THE COMPANY'S OPERATING SYSTEMS DIVISION WHO HAD SAID IBM WOULD OFFER ITS OS/2 AND WORKPLACE OS OPERATING SYSTEMS WHEN THE COMPANY LAUNCHES MACHINES BASED ON POWERPC BUT EXECUTIVES TRYING TO PROMOTE THE POWERPC AS A STANDARD HARDWARE ARCHITECTURE SAY THE COMPANY HAS CONSISTENTLY SOUGHT TO ADOPT ALL POPULAR OPERATING SYSTEMS EVEN IF THEY POSE COMPETITION FOR IBMDEVELOPED SOFTWARE WE ARE NOT BACKING ANY PARTICULAR OPERATING SYSTEM SAID LINEENE KRASNOW DIRECTOR OF MARKETING FOR IBM'S POWER PERSONAL SYSTEMS DIVISION WE ARE MAKING IT VERY OPEN AND ACCESSIBLE TO ALL MEANWHILE IBM HOPING TO WIN OVER SOME OF MICROSOFT'S 30 MILLION WINDOWS USERS INTRODUCED A VERSION OF ITS POWERFUL OS/2 SYSTEM THAT CAN PULL UP A USER'S EXISTING WINDOWS WHILE OFFERING NEW FEATURES AS WELL OS/2 FOR WINDOWS AS IT IS CALLED IS PRICED AT 49 AT LEAST 100 LESS THAN THE VERSION OF OS/2 THAT'S PACKAGED WITH WINDOWS THE LATEST VERSION OF WINDOWS 31 WHICH COMES PRELOADED ON MILLIONS OF PERSONAL COMPUTERS SEPARATELY SELLS FOR ABOUT 150 IN ADDITION TO COSTING LESS IBM SAID THE WINDOWLESS VERSION OF OS/2 MEANS IT DOESN'T HAVE TO PAY MICROSOFT ROYALTIES FOR THE WINDOWS CODE BECAUSE IT ISN'T USING ANY OF THE CODE IT'S ALL MONEY IN OUR POCKET SAID ONE IBM OFFICIAL WHO DIDN'T WANT TO BE IDENTIFIED JONATHAN ROBERTS GROUP PRODUCT MANAGER FOR MICROSOFT'S WINDOWS SAID HE HADN'T SEEN OS/2 FOR WINDOWS YET AND DIDN'T KNOW IF THERE WERE ANY LICENSING PROBLEMS HOWEVER HE SAID MICROSOFT WOULD BE LOOKING AT THE QUESTION LAURIE HAYS CONTRIBUTED TO THIS ARTICLE 9311110148 931111 PLAINS PETROLEUM ENTERS VENTURE LAKEWOOD COLO PLAINS PETROLEUM CO SAID ITS PLAINS PETROLEUM OPERATING CO UNIT HAS AGREED TO A 5050 JOINT VENTURE WITH ENSIGN OIL & GAS INC TO DEVELOP CERTAIN NATURALGAS RESERVES IN CARBON COUNTY WYO PLAINS SAID IT WILL PAY HALF THE COST OF DRILLING AT LEAST 14 WELLS THE COMPANY SAID IT EXPECTS THE FIRST WELL TO BE DRILLED IN THE SECONDQUARTER OF 1994 FOLLOWING COMPLETION OF AN ENVIRONMENTAL IMPACT STUDY 9311110147 931111 FINANCING BUSINESS SHAMAN PHARMACEUTICALS INC SHAMAN PHARMACEUTICALS INC SOUTH SAN FRANCISCO CALIF SAID IT FILED A REGISTRATION STATEMENT FOR A PROPOSED PUBLIC OFFERING OF TWO MILLION COMMON SHARES THE OFFERING WILL BE MANAGED BY SG WARBURG & CO AND HAMBRECHT & QUIST INC SHAMAN WHICH HAS 106 MILLION SHARES OUTSTANDING SAID IT PLANS TO USE PROCEEDS OF THE OFFERING TO ADVANCE ITS DRUG DISCOVERY PROGRAM THE COMPANY DEVELOPS DRUGS FROM TROPICAL PLANTS 9311110146 931111 MARKETING & MEDIA MARKETSCAN FLAVOREDMILK SALES ARE HEALTHY BUT PARENTS AREN'T TOTALLY SOLD BY JACQUELINE SIMMONS KIDS ARE DRINKING THEIR MILK THESE DAYS NESTLE'S BUTTERFINGER MILK AND BORDEN'S ROOTBEER MILK THAT IS TO THE CONSTERNATION OF SOME PARENTS AND NUTRITIONISTS AT A TIME WHEN SALES OF PLAIN OLD WHITE MILK ARE SLIPPING SALES OF A HOST OF NEW SUGARY MILKS ARE GROWING NICELY THANKS TO THESE NEW VARIETIES SUPERMARKET SALES OF FLAVORED MILKS CLIMBED TO 1722 MILLION FOR THE 52 WEEKS ENDED SEPT 12 UP 81 FROM 1593 MILLION A YEAR EARLIER ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE SALES OF PRIVATELABEL FLAVORED MILKS ROSE 7 TO 464 MILLION FROM A YEAR EARLIER WHILE NESTLE QUIK REFRIGERATED MILK WHICH INCLUDES CHOCOLATE BANANA AND STRAWBERRY INCREASED 69 TO 34 MILLION AND SALES OF KEMPS MOO JR'S ORANGE ROOTBEER AND OTHER MILK FLAVORS JUMPED 129 TO 35 MILLION BORDEN INC'S AND HERSHEY FOODS CORP'S FLAVOREDMILK SALES DECLINED IN THE SAME PERIOD WHICH INDUSTRY ANALYSTS ATTRIBUTE TO A LACK OF FLAVORS WITH PIZAZZ HERSHEY HOWEVER JUST LAUNCHED A LINE OF ASEPTICPACKAGED MILKS IN SUCH FLAVORS AS BANANA SPLIT AND CHOCOLATE CHERRY NOW THAT CONSUMERS HAVE A GREATER SELECTION OF FLAVORS IN OTHER BEVERAGES SUCH AS JUICES AND SODAS FEWER PEOPLE ARE DRINKING MILK SAYS DAVE BAVLNKA DIRECTOR OF MARKETING FLUID AND RELATED PRODUCTS FOR THE WISCONSIN MILK MARKETING BOARD THUS THE FLAVOR EXPLOSION WE'RE GOING TO SEE MUCH MORE OF THE BUTTERFINGER KIND OF THING SAYS JERRY DRYER AN INDEPENDENT CONSULTANT TO THE DAIRY INDUSTRY HE NOTES THAT THE WHITE MILK BUSINESS IS GOING TO HELL IN A HANDBASKET TICKING DOWN BETWEEN 1 AND 2 EACH YEAR FOR THE PAST 15 YEARS THE ADVICE THAT I GIVE THE DAIRY INDUSTRY IS TO GET OUT OF THE MILK BUSINESS AND INTO THE BEVERAGE OR SNACK BUSINESS HE SAYS SALES OF WHITE MILK FELL 068 TO 836 BILLION IN THE 52WEEK PERIOD ENDED SEPT 12 FROM THE YEAREARLIER PERIOD ACCORDING TO INFOSCAN DATA SALES OF WHOLE MILK PLUMMETED 67 TO 26 BILLION SKIM AND LOWFAT MILK HOWEVER ROSE 23 TO 57 BILLION PARENTS AND NUTRITIONISTS AREN'T SOLD ON THE NEW GOOEY MILK CONCOCTIONS JESSICA HANLEY AN 11YEAROLD IN SCOTTSDALE ARIZ SAYS IT SOUNDS PRETTY GOOD I LIKE CANDY AND I LIKE ROOT BEER SO I WOULD PROBABLY LIKE THE MILK TOO BUT HER MOTHER DEBRA HANLEY CHIMES IN I DO BUY CHOCOLATE MILK SHE'S DRINKING IT RIGHT NOW WITH A DOUGHNUT BUT THESE FLAVORS SOUND REAL DISGUSTING ANOTHER MOTHER CHRISTINE BUCK OF CROYDON PA LAUGHS SAYING SHE DOESN'T THINK SHE WOULD EVER GIVE ANYTHING OTHER THAN CHOCOLATE MILK TO HER TWO DAUGHTERS WE ONCE TRIED A BANANAFLAVORED MILK AND NOBODY LIKED IT SHE SAYS FLAVORED MILK TELLS KIDS THAT CANDY ISN'T SO BAD SHE ADDS WE LIKE TO KEEP THINGS WE CONSIDER TREATS SEPARATE FROM ESSENTIAL FOODS SOME NUTRITIONISTS THINK THE FLAVORED MILKS ARE PART OF A WORRISOME TREND ALTHOUGH THE NEW FLAVORS AREN'T THAT MUCH DIFFERENT FROM OTHER 2 FLAVORED MILKS IN TERMS OF NUTRITION BONNIE LIEBMAN DIRECTOR OF NUTRITION AT THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST CONTENDS THAT THE FOOD INDUSTRY IS MERELY CONVINCING SOME PARENTS THAT KIDS WON'T DRINK MILK UNLESS IT IS CANDYFLAVORED I DON'T KNOW WHERE WE GOT THE NOTION THAT CHILDREN'S FOOD HAS TO BE LOADED WITH SUGAR AND ARTIFICIAL FLAVORS SHE SAYS IT'S AS THOUGH WE HAVE TO DOCTOR KIDS' FOODS IN ORDER TO GET THEM TO EAT KIDS WILL EAT PERFECTLY HEALTHY FOODS IF WE EXPECT THEM TO PHIL SOKOLOF PRESIDENT OF THE NATIONAL HEART SAVERS ASSOCIATION SAYS THE NEW FLAVORS AREN'T A PROBLEM AS LONG AS THE COMPANIES USE SKIM NOT 2 OR WHOLE MILK IF IT'S 2 MILK I'M AGAINST IT HE SAYS IT'S NOT LOWFAT BUT BEVERAGE COMPANIES INSIST FLAVORED MILK COMPLEMENTS A WELLBALANCED DIET WE NEED TO LOOK AT CHILDREN'S DIETS AS A WHOLE AS OPPOSED TO ANY INDIVIDUAL PRODUCT SAYS NATALIE BAILEY SPOKESWOMAN FOR HERSHEY WE BELIEVE THERE IS NO SUCH THING AS JUNK FOODS BUT RATHER JUNK DIETS HERSHEY USES SKIM MILK IN ITS NEW LINE OF ASEPTICPACKAGED BANANASPLIT CHOCOLATECARAMEL CHOCOLATEMARSHMALLOW CHOCOLATECHERRY AND STRAWBERRY FLAVORED MILKS THE COMPANY ALSO OFFERS A CHOICE OF 2 AND WHOLE MILK FOR ITS REFRIGERATED CHOCOLATE MILK SAYS MS BAILEY NESTLE SA SAYS IT USES 2 MILK IN ITS NEW BUTTERFINGER REFRIGERATED MILK AND ITS BANANA QUIK MILK BOTH OF WHICH CONTAIN FEWER CALORIES AND LESS FAT THAN ITS STRAWBERRY OR CHOCOLATE REFRIGERATED WHOLE MILKS THE BUTTERFINGER MILK WHICH IS PITCHED IN ADS BY CARTOON CHARACTER BART SIMPSON GETS KIDS TO DRINK THEIR MILK INSISTS A COMPANY SPOKESWOMAN INDEED SOME SCHOOL DISTRICTS ARE ALLOWING MORE FLAVORED MILKS TO GET MORE CALCIUM INTO STUDENTS' DIETS BORDEN SELLS ITS MEADOW GOLD ROOTBEER AND STRAWBERRY FLAVORED MILKS TO SCHOOLS IN SUCH CITIES AS DENVER AND SALT LAKE CITY PAM TSAKALOS FOOD SERVICE DIRECTOR OF DAVIS COUNTY SCHOOLS IN FARMINGTON UTAH SAYS BORDEN'S ROOTBEER FLAVORED MILK IS GIVEN TO STUDENTS ON SPECIAL DAYS SUCH AS HALLOWEEN AND MICKEY MOUSE'S BIRTHDAY THE KIDS LOVE IT SHE SAYS THEY TEND TO DRINK FLAVORED MILK BETTER THAN THEY DO REGULAR MILK I WOULD HAVE IT EVERYDAY IF IT WAS LESS EXPENSIVE THE SUGGESTED RETAIL PRICE FOR ONE QUART OF BUTTERFINGER MILK IS 139 COMPARED WITH 119 FOR ONE QUART OF NESTLE'S REFRIGERATED CHOCOLATE OR BANANA FLAVORED MILK AND ABOUT 90 CENTS FOR A QUART OF 2 WHITE MILK DESPITE THE RECENT SALES GAINS THE MARKET FOR FLAVORED MILK IS CLEARLY LIMITED MARIGOLD FOODS INC A MINNEAPOLISBASED COMPANY SELLS KEMPS MOO JR'S ORANGE FLAVORED MILK AND KEMPS MOO JR'S ROOTBEER FLAVORED MILK BUT DOESN'T HEAVILY PROMOTE THEM CONSUMERS WON'T GET UP IN THE MORNING AND POUR ROOTBEER FLAVORED MILK INTO THEIR COFFEE OR CEREAL SAYS A MARIGOLD SPOKESMAN IT INCREASES THE CONSUMPTION OF MILK PRODUCTS BUT BECOMES MORE OF A SNACK AND LESS OF A MEAL BEVERAGE A FLURRY OF NEW FLAVORS IS BOOSTING SALES OF MILK DRINKS BUT HERSHEY AND BORDEN ARE MISSING THE BOOM BASED ON SALES OF FLAVOREDMILK PRODUCTS IN SUPERMARKETS DURING THE 52 WEEKS ENDED SEPT 12 9311110145 931111 FINANCING BUSINESS MEDUSA CORP MEDUSA CORP CLEVELAND PRICED 50 MILLION OF CONVERTIBLE SUBORDINATED NOTES DUE 2003 THE INTEREST RATE IS 6 PAYABLE SEMINANNUALLY BEGINNING MAY 15 1994 ON MAY 15 AND NOV 15 THE NOTES ARE CONVERTIBLE AT ANY TIME INTO MEDUSA COMMON SHARES WITHOUT PAR VALUE AT AN INITIAL PRICE OF 33125 PRINCIPAL AMOUNT PER COMMON SHARE JP MORGAN SECURITIES INC IS THE LEAD UNDERWRITER MEDUSA SAID IT WILL USE THE NET PROCEEDS TO RETIRE THE REMAINING 38 MILLION BALANCE OF A LOAN INCURRED IN CONNECTION WITH THE FEBRUARY 1993 PURCHASE OF THE DEMOPOLIS ALA CEMENT PLANT AND RELATED ASSETS MEDUSA PRODUCES AND SELLS CEMENT AND LIMESTONE PRODUCTS AND PROVIDES CONSTRUCTION SERVICES 9311110144 931111 PLATINUMSUN MICROSYSTEMS PACT IRVINE CALIF PLATINUM SOFTWARE CORP AND SUN MICROSYSTEMS INC'S SUN MICROSYSTEMS COMPUTER CORP UNIT HAVE FORMED A STRATEGIC BUSINESS PARTNERSHIP TERMS WEREN'T DISCLOSED BUT THE COMPUTER SOFTWARE AND WORKSTATION COMPANIES SAID THEY WILL JOINTLY DEVELOP SALES AND MARKETING ACTIVITIES INCLUDING EDUCATIONAL SEMINARS DIRECT MAIL CAMPAIGNS TRADE SHOW OPPORTUNITIES AND INTERNAL SALES AND MARKETING PROGRAMS 9311110143 931111 AEROMEXICO CALIFORNIA ROUTES MEXICO CITY AEROMEXICO SAID IT IS ESTABLISHING NEW ROUTES TO ONTARIO INTERNATIONAL AIRPORT WHICH IS LOCATED EAST OF LOS ANGELES THE MEXICOBASED CARRIER SAID IT PLANS TO ESTABLISH SERVICE BETWEEN ONTARIO INTERNATIONAL AND GUADALAJARA BEGINNING MONDAY AND BETWEEN ONTARIO INTERNATIONAL AND MEXICO CITY BEGINNING DEC 16 9311110142 931111 BRADY BILL WINS HOUSE APPROVAL IN 238189 VOTE MEASURE REQUIRES WAITING PERIOD OF 5 DAYS CHECK ON HANDGUN PURCHASERS BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE PASSED THE SOCALLED BRADY BILL WHICH IMPOSES A FIVEDAY WAITING PERIOD AND BACKGROUND CHECK ON THE BUYER BEFORE A HANDGUN PURCHASE BECOMES FINAL THOUGH THE LEGISLATION APPROVED BY A 238189 VOTE HAS BEEN PUSHED FOR YEARS BY GUNCONTROL ADVOCATES THE BILL WAS AMENDED TO MAKE IT MORE ACCEPTABLE TO GUNCONTROL OPPONENTS IN A SEPARATE VOTE THE HOUSE APPROVED AN AMENDMENT BY REP GEORGE GEKAS R PA THAT AFTER FIVE YEARS WOULD REPLACE THE FIVEBUSINESSDAY WAITING PERIOD WITH A COMPUTERIZED INSTANT CHECK SYSTEM DESPITE THE INABILITY OF SUPPORTERS TO DEFEAT THE GEKAS MEASURE REP CHARLES SCHUMER D NY SAID THE BILL IS GOING TO MAKE A REAL DIFFERENCE IN TERMS OF GETTING GUNS OFF THE STREET TO ARDENT GUNCONTROL SUPPORTERS THE GEKAS AMENDMENT MAKES THE LEGISLATION PRACTICALLY USELESS JOSH SUGARMANN A SPOKESMAN FOR THE VIOLENCE POLICY CENTER WHICH FAVORS A MORE COMPREHENSIVE APPROACH TO GUN CONTROL ARGUES THAT IT IS ACTUALLY A VICTORY FOR THE NATIONAL RIFLE ASSOCIATION EVEN WITHOUT THE GEKAS PROVISION HE SAID THE BILL WOULD HAVE VERY LITTLE EFFECT ON GUN VIOLENCE MUCH GUN VIOLENCE INCLUDING SHOOTINGS AMONG RELATIVES AND ASSOCIATES AS WELL AS SUICIDES IS DONE WITH GUNS BOUGHT LEGALLY HE SAID AND CRIMINALS HE ADDED DON'T BUY GUNS IN GUN STORES BUT IN A STATEMENT HANDGUN CONTROL INC WHICH BACKS THE BRADY BILL DISAGREED THE FACT IS FELONS ARE ALREADY CAUGHT BY THE THOUSANDS IN STATES WHICH CURRENTLY HAVE WAITING PERIOD/BACKGROUND CHECK LAWS THE GROUP NOTED A JUSTICE DEPARTMENT SURVEY THAT SHOWED 27 OF STATEPRISON INMATES BOUGHT A HANDGUN AT A RETAIL OUTLET THE SURVEY ALSO SHOWED THAT 37 ACQUIRED THE GUN THROUGH THEFT OR AN ILLEGAL MARKET WARREN LAPIERRE NRA CHIEF EXECUTIVE PRAISED THE AMENDED LEGISLATION AFTER FIVE YEARS HE SAID THE COUNTRY WILL HAVE A SYSTEM THAT THE NRA HAS BEEN ADVOCATING FROM THE VERY START SEPARATELY AT A NEWS CONFERENCE PRESIDENT CLINTON SUGGESTED AN OUTRIGHT BAN ON SOCALLED COPKILLER BULLETS WHICH EXPLODE ON IMPACT THERE MIGHT BE A CONSENSUS THAT WE OUGHT NOT TO MAKE IT AT ALL IN THIS COUNTRY HE SAID THE BRADY BILL WAS NAMED AFTER JIM BRADY PRESIDENT REAGAN'S PRESS SECRETARY WHO WAS SHOT AND PARALYZED IN AN 1981 ASSASSINATION ATTEMPT ON THE PRESIDENT MR BRADY AND HIS WIFE SARAH HAVE BEEN LEADING PROPONENTS OF THE LEGISLATION MR SCHUMER SAID HE AND MRS BRADY CONSIDERED PULLING THE BILL IF AN AMENDMENT HAD PASSED THAT WOULD HAVE PREEMPTED STATE LAWS THAT DICTATE PERIODS AFTER THE COMPUTERIZED INSTANTCHECK SYSTEM TOOK EFFECT IT FAILED ON A 275175 VOTE TWO YEARS AGO BOTH THE HOUSE AND SENATE PASSED CRIME LEGISLATION THAT INCLUDED PROVISIONS ESTABLISHING WAITING PERIODS BUT THE LEGISLATION GOT BOGGED DOWN IN A PARTISAN DISPUTE AND WAS NEVER ENACTED THIS YEAR THE LAWMAKERS CONSIDERED THE BRADY BILL SEPARATELY THE BRADY BILL IS JUST ONE OF A SERIES OF CRIMERELATED MEASURES THE HOUSE AND SENATE HAVE CONSIDERED OVER THE PAST SEVERAL DAYS THE SENATE HAS APPROVED VARIOUS AMENDMENTS TO ITS OMNIBUS CRIME BILL WHICH WOULD AUTHORIZE 22 BILLION OVER FIVE YEARS IN ANTICRIME SPENDING THE MONEY WOULD BE USED AMONG OTHER THINGS TO HIRE 100000 LOCAL POLICE OFFICERS AND TO BUILD AND OPERATE REGIONAL PRISONS BOOT CAMPS AND JUVENILEDETENTION FACILITIES THE HOUSE LAST WEEK APPROVED SEPARATE MEASURES THAT WOULD PUT 50000 MORE POLICE OFFICERS ON THE STREETS AS WELL AS FUND DRUG TREATMENT FOR PRISON INMATES AND PROGRAMS TO STEM GANG VIOLENCE SOME OF THE MEASURES HOWEVER AREN'T EXPECTED TO STEM STREET CRIME BECAUSE THEY COVER AREAS ALREADY DEALT WITH BY STATE LAW ONE SENATE MEASURE FOR EXAMPLE WOULD MAKE IT A FEDERAL CRIME TO PARTICIPATE IN A CRIMINAL STREET GANG AND WOULD IMPOSE MANDATORY MINIMUM SENTENCES ON THOSE VIOLATING THE STATUTE THE MEASURE SPONSORED BY REPUBLICANS ROBERT DOLE OF KANSAS AND ORRIN HATCH OF UTAH WOULD ALSO AUTHORIZE 100 MILLION OVER FIVE YEARS TO HIRE ADDITIONAL FEDERAL ATTORNEYS TO PROSECUTE GANG MEMBERS AND A 100 MILLION GRANT PROGRAM TO FUND ACTIVITIES DESIGNED TO PREVENT GANG ACTIVITY THE SENATE ALSO APPROVED A MEASURE SPONSORED BY SEN CAROL MOSELEYBRAUN D ILL THAT WOULD DIRECT THE JUSTICE DEPARTMENT TO TRY JUVENILES 13 YEARS OLD AND OLDER AS ADULTS IF THEY ARE CHARGED WITH CERTAIN CRIMES INCLUDING MURDER AGGRAVATED ASSAULT AND ARMED ROBBERY WHILE ARMED WITH A FIREARM WAYNE LAPIERRE IS EXECUTIVE VICE PRESIDENT OF THE NATIONAL RIFLE ASSOCIATION AN ARTICLE THURSDAY ON GUN LEGISLATION GAVE HIS FIRST NAME INCORRECTLY 9311110141 931111 DERIVATIVES MAY DELIVER POSTAL SAVINGS BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WALL STREET HASN'T YET FIGURED OUT HOW TO DEAL WITH RAIN SLEET AND SNOW BUT IT'S EAGER TO HELP THE US POSTAL SERVICE HANDLE SOME OTHER HAZARDS RUNNING A POST OFFICE MAY SEEM LIKE A FAIRLY SAFE BUSINESS BUT IT'S ACTUALLY FRAUGHT WITH RISKS ACCORDING TO A 74PAGE PROPOSAL RECENTLY PREPARED FOR THE POST OFFICE BY EMCOR RISK MANAGEMENT CONSULTING AN IRVINGTON NY FIRM THE EMCOR PROPOSAL ADVOCATES USING SOCALLED DERIVATIVE PRODUCTS LIKE SWAPS OPTIONS AND FUTURES TO PROTECT THE POSTAL SERVICE FROM ADVERSE FUEL COST FLUCTUATIONS CURRENCY SWINGS AND INTEREST RATE GYRATIONS SOME WHO REGARD THE POSTAL SERVICE AS A DULL BYTHEBOOK BUREAUCRACY MIGHT WONDER WHY THE INDEPENDENT GOVERNMENT AGENCY WOULD EVEN LOOK AT THESE EXOTIC FINANCIAL STRATEGIES BUT THE POST OFFICE'S SERIOUS CONSIDERATION SHOWS HOW FAR DERIVATIVES HAVE MOVED INTO THE MAINSTREAM ALREADY MUCH OF CORPORATE AMERICA USES THESE TOOLS TO FINETUNE THEIR FINANCES BUT UNTIL RECENTLY WALL STREET LARGELY IGNORED GOVERNMENT AGENCIES INVESTMENT BANKERS LONG CONSIDERED BUREAUCRATS A HARDER SELL THAN CORPORATE TREASURERS BECAUSE BY AND LARGE THEY COULD ALWAYS TAX THEIR WAY OUT OF PROBLEMS CREATED BY UNEXPECTED PRICE SURGES SAYS EMMETT HARTY PRESIDENT OF PARALLAX GROUP STAMFORD CONN A DERIVATIVES RESEARCH GROUP BUT REBELLIOUS TAXPAYERS HAVE MADE BUREAUCRATS MORE OPEN TO HEDGING POST OFFICES ARE A NATURAL FOR DERIVATIVES' USE INVESTMENT BANKERS SAY THEY'RE BIG AND THEY TEND TO FACE FINANCIAL RISK FROM FLUCTUATING RATES ON MANY THINGS THAT DERIVATIVES ARE DESIGNED TO HEDGE WITH REVENUE LAST YEAR OF 467 BILLION THE US POSTAL SERVICE QUALIFIES AS ONE OF THE NATION'S 10 BIGGEST BUSINESSES BETWEEN DELIVERING MAIL AND HEATING ITS BUILDINGS IT BURNED UP 865 MILLION IN FUEL IN 1991 IT'S EXPOSED TO EXCHANGERATE RISK FROM REIMBURSING FOREIGN AUTHORITIES FOR LOCAL DELIVERY OF US MAIL SOME 10 BILLION IN DEBT PROVIDES INTERESTRATE RISK WE WANT TO BE SURE WE'RE MINIMIZING RISK NOT ADDING TO IT SAYS MICHAEL RILEY THE POSTAL SERVICE'S CHIEF FINANCIAL OFFICER WE THINK THE EMCOR PLAN IS PRUDENT AND WE'RE ENTHUSIASTIC ABOUT IT HE EXPECTS THE PLAN WILL SOON BE PRESENTED TO THE POSTAL SERVICE'S BOARD OF GOVERNORS FOR APPROVAL DURING THE PAST FEW YEARS THE SERVICE HAS BEEN PITCHED FINANCIAL PRODUCTS BY MANY PROMINENT INVESTMENT BANKS BUT WHEN THE INDEPENDENT GOVERNMENT AGENCY DECIDED TO COMMISSION A STUDY ON THE USE OF DERIVATIVES MR RILEY SAYS THE SERVICE CHOSE THE OBSCURE EMCOR BECAUSE IT HAD ONE IMPORTANT CLAIM TO FAME IT PUT IN PLACE A SIMILAR PLAN FOR THE BRITISH POST OFFICE IN THE LATE 1980S DAVID CROMWELL THE BRITISH POSTAL TREASURER SAYS THE AGENCY IS SEVERAL MILLION POUNDS BETTER OFF THAN IF IT HAD DONE NOTHING SOME STRATEGIES USED BY THE BRITISH WORK LIKE INSURANCE POLICIES BY SIGNING OPTION CONTRACTS FOR EXAMPLE THE POST OFFICE OBTAINS THE RIGHT BUT NOT THE OBLIGATION TO BUY SPECIFIED AMOUNTS OF CURRENCY OR FUEL AT SPECIFIED PRICES IN THE FUTURE BECAUSE VALUING OPTIONS IS AN INEXACT SCIENCE ONE DANGER IS THAT THE POST OFFICE COULD OVERPAY FOR THE INSURANCE OR BUY MORE THAN IT NEEDS HEDGING ALSO CARRIES BIG OPPORTUNITY COSTS THE POST OFFICE MIGHT FOR INSTANCE LOCK IN FIXED FUEL PRICES JUST BEFORE PRICES PLUMMET US POSTAL SERVICE TREASURER STEPHEN KEARNEY SAYS THAT HE IS USED TO SURPRISED REACTIONS FROM CORPORATE TREASURERS WHO HEAR THE POST OFFICE IS MULLING OVER DERIVATIVES BUT MOST ARE HAPPY WE'RE TRYING TO CONTROL OUR COSTS HE ADDS 9311110140 931111 FINANCING BUSINESS BRAMALEA LTD BRAMALEA LTD TORONTO SAID IT PLANS TO CONVERT 70 OF ITS REMAINING CONVERTIBLE SENIOR DEBENTURES INTO COMMON SHARES AS PROVIDED UNDER THE TERMS OF THE DEBENTURES ABOUT 256 MILLION CANADIAN DOLLARS US1957 MILLION PRINCIPAL AMOUNT OF DEBENTURES WILL BE CONVERTED INTO ABOUT 275 MILLION COMMON SHARES ON MONDAY THE REAL ESTATE CONCERN SAID THE MOVE WILL BRING THE TOTAL AMOUNT OF DEBT CONVERTED TO EQUITY TO C427 MILLION UNDER BRAMALEA'S DEBT RESTRUCTURING PLAN BRAMALEA SAID IT IS PROCEEDING WITH THE CONVERSION SINCE IT HAS EXCEEDED THE CASH GENERATION TEST CONTAINED IN THE TERMS OF THE DEBENTURES AND THAT ITS UPDATED CASH FLOW PROJECTIONS FOR THE REMAINING FOUR YEARS OF ITS BUSINESS PLAN MEET OR EXCEED LEVELS REQUIRED UNDER THE AGREEMENT WITH DEBTHOLDERS AT LAST REPORT BRAMALEA HAD 650 MILLION SHARES OUTSTANDING IN HEAVY TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY BRAMALEA ENDED AT 45 CANADIAN CENTS DOWN THREE CANADIAN CENTS 9311110139 931111 PILLSBURY BUYS BREADMIX MAKER MINNEAPOLIS PILLSBURY CO SAID IT ACQUIRED ROUSH PRODUCTS CO A MAKER OF BREAD MIXES FOR FOODSERVICE AND WHOLESALE BAKERS FROM WINDMILL HOLDINGS CORP TERMS WEREN'T DISCLOSED PILLSBURY IS A UNIT OF GRAND METROPOLITAN PLC THE ACQUISITION INCLUDES COUNTRY HEARTH A LEADING US BRAND OF VARIETY BREAD AND OTHER ROUSH BRANDS PILLSBURY SAID 9311110138 931111 TECHNOLOGY & HEALTH STUDY FINDS BRISTOLMYERS HEART DRUG SLOWS DOWN KIDNEY DISEASE IN DIABETICS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCHERS HAVE FOUND THAT BRISTOLMYERS SQUIBB CO'S HEART DRUG CAPOTEN REDUCES BY 50 THE NEARTERM RISK OF DEATH AND SLOWS THE PROGRESS OF SERIOUS KIDNEY DISEASE IN INSULINDEPENDENT DIABETES PATIENTS THE STUDY GIVES NEW HOPE TO MILLIONS OF DIABETES PATIENTS WITH KIDNEY DISEASE WHO FACE YEARS OF DIALYSIS TREATMENT AND POSSIBLY AN EARLY DEATH IT ALSO GIVES NEW LIFE TO CAPOTEN A BLOODPRESSURE TREATMENT THAT HAS BEEN STEADILY LOSING MARKET SHARE IN RECENT YEARS AMID INTENSE COMPETITION CAPOTEN'S SHARE DECLINE IS EXPECTED TO ACCELERATE AFTER ITS US PATENT EXPIRES IN 1995 AND GENERIC VERSIONS ENTER THE MARKET BUT CAPOTEN BRISTOLMYERS'S BIGGESTSELLING DRUG AT 17 BILLION LAST YEAR MIGHT GET A LIFT IF IT IS APPROVED TO TREAT KIDNEY DISEASE IN DIABETES PATIENTS THE COMPANY PARTIALLY FUNDED THE STUDY USING THE RESULTS LAST MONTH TO WIN A FOOD AND DRUG ADMINISTRATION PANEL'S RECOMMENDATION FOR APPROVAL OF THE EXPANDED USE THE STUDY COULD PROMPT DOCTORS TO PRESCRIBE THE DRUG TO TREAT DIABETES PATIENTS RIGHT WAY EVEN THOUGH THE COMPANY CAN'T MARKET IT FOR THAT USE WITHOUT FEDERAL APPROVAL AN FDA DECISION COULD COME WITHIN MONTHS THE AGENCY USUALLY BUT NOT ALWAYS FOLLOWS THE RECOMMENDATIONS OF ITS EXPERT PANELS APPROVAL BY THE AGENCY WOULD HELP CAPOTEN WIN MANAGEDCARE CUSTOMERS THE CAPOTEN TREATMENT COULD SAVE 26 BILLION IN DIALYSIS COSTS OVER 10 YEARS ACCORDING TO THE RESEARCHERS ANNUAL CAPOTEN TREATMENT WOULD COST ABOUT 700 WHILE DIALYSIS COSTS 40000 TO 60000 THEY SAID DIABETES AFFLICTS 14 MILLION PEOPLE IN THE US AND 100 MILLION TO 150 MILLION WORLDWIDE ABOUT 30 TO 40 OF DIABETES PATIENTS WILL DEVELOP KIDNEY DISEASE AND EVENTUALLY REQUIRE DIALYSIS OR A KIDNEY TRANSPLANT ALTHOUGH THE STUDY FOCUSED ON INSULINDEPENDENT PATIENTS WHO REPRESENT ABOUT 10 OF THOSE WITH DIABETES THE RESEARCHERS INDICATED CAPOTEN WOULD WORK FOR OTHER DIABETES PATIENTS WITH KIDNEY DISEASE THE PROGNOSIS FOR PATIENTS WHO SHOW EVIDENCE OF KIDNEY DAMAGE IS POOR SAID EDMUND J LEWIS OF THE RUSHPRESBYTERIAN ST LUKE'S MEDICAL CENTER IN IOWA CITY IOWA THE LEAD RESEARCHER IN THE CAPOTEN STUDY THE AVERAGE AGE OF INSULINDEPENDENT DIABETES PATIENTS WHO DEVELOP MODERATE KIDNEY DISEASE IS 35 AND MOST WILL HAVE DIED WITHIN 10 YEARS HE SAID WHILE IT ISN'T A CURE CAPOTEN SIGNIFICANTLY SLOWS THE PROGRESSION OF THE DISEASE HE SAID IN THE STUDY PUBLISHED IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE 409 INSULINDEPENDENT DIABETES PATIENTS WITH KIDNEY DISEASE WERE GIVEN EITHER CAPOTEN OR A PLACEBO FOR ABOUT THREE YEARS BY THE END OF THE STUDY PATIENTS TAKING CAPOTEN WERE GENERALLY FARING MUCH BETTER THAN THOSE TAKING THE PLACEBO THE PATIENTS TAKING THE PLACEBO LOST KIDNEY FUNCTION AT TWICE THE RATE OF THE CAPOTEN PATIENTS DR LEWIS SAID AMONG THE MOST SEVERELY ILL PATIENTS FORTYTHREE IN THE PLACEBO GROUP SHOWED EVIDENCE OF A SERIOUS LOSS OF KIDNEY FUNCTION COMPARED WITH 25 PATIENTS IN THE CAPOTEN GROUP DURING THE STUDY 42 PATIENTS IN THE PLACEBO GROUP DIED OR REQUIRED DIALYSIS OR A KIDNEY TRANSPLANT COMPARED WITH 23 CAPOTEN PATIENTS REGARDLESS OF THE LEVEL OF KIDNEY DAMAGE CAPOTEN TREATMENT DOUBLED THE AMOUNT OF TIME BEFORE A PATIENT NEEDED DIALYSIS DR LEWIS SAID FOR EXAMPLE PATIENTS WHO NORMALLY WOULD HAVE REQUIRED DIALYSIS IN TWO YEARS WERE ABLE TO GO ANOTHER TWO YEARS WITHOUT IT IF THEY WERE TAKING CAPOTEN THREEQUARTERS OF THE PATIENTS HAD HIGH BLOOD PRESSURE AND WERE TREATED WITH MEDICATION BUT ONLY THOSE TAKING CAPOTEN SHOWED INCREASED CHANCES FOR SURVIVAL AND SLOWED DISEASE PROGRESSION MOREOVER THE CAPOTEN TREATMENT WORKED IN PATIENTS WITH NORMAL BLOOD PRESSURE THE RESEARCHERS THEORIZED THAT CAPOTEN SPECIFICALLY RELAXED BLOOD VESSELS IN THE KIDNEYS WHEN THOSE VESSELS ARE CONSTRICTED PRESSURE BUILDS UP CAUSING KIDNEY DAMAGE AND ULTIMATELY FAILURE IT APPEARS OTHER BLOOD PRESSURE DRUGS DON'T SUFFICIENTLY REDUCE PRESSURE WITHIN THE KIDNEYS ALTHOUGH THEY MAY REDUCE BLOOD PRESSURE OVERALL DR LEWIS SAID ALTHOUGH INSULINDEPENDENT PATIENTS WERE STUDIED DR LEWIS SUGGESTED CAPOTEN WOULD WORK FOR ANY DIABETES PATIENT BECAUSE THE MECHANISM OF KIDNEY DAMAGE IS THE SAME RUSHPRESBYTERIANST LUKE'S MEDICAL CENTER IS LOCATED IN CHICAGO AN ARTICLE YESTERDAY ABOUT RESEARCH ON KIDNEY DISEASE IN DIABETES PATIENTS INCORRECTLY SAID THE CENTER IS IN IOWA CITY IOWA 9311110137 931111 ENTERPRISE RESTAURATEURS LASH OUT AT CLINTON'S HEALTH PROPOSAL PLAN'S SUBSIDY FAILS TO DENT OPPOSITION AS OWNERS SEE SLOW HIRING LEAN PROFITS BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL AT CHICAGO'S GOLD COAST DOGS A HOT DOG THESE DAYS COSTS 189 LARGE COKES ARE 115 THE REFILLS ARE FREE BUT GOLD COAST SAYS SUCH PRICES WON'T LAST LONG IF PRESIDENT CLINTON GETS HIS WAY ON HEALTH CARE AND FORGET ABOUT THE FREE REFILLS I DON'T KNOW HOW I'M GOING TO COPE SAYS BARRY POTEKIN OWNER OF GOLD COAST A RAPIDLY GROWING SEVENSTORE FASTFOOD CHAIN EVEN THOUGH HE HAS NO PLANS TO SCALE BACK HE FORESEES A PERIOD OF LEAN PROFITS AND SLOW HIRING WINNING OVER OWNERS OF SUCH LABORINTENSIVE BUSINESSES WHICH OFTEN PAY LOW WAGES IS ONE OF THE TOUGHEST CHALLENGES PRESIDENT CLINTON FACES IN SELLING HIS HEALTHCARE PLAN WITHIN THIS GROUP OF ENTREPRENEURS OWNERS OF INEXPENSIVE AND MEDIUMPRICED RESTAURANTS AND FASTFOOD OUTLETS HAVE BEEN AMONG THE MOST VOCAL OPPONENTS OF THE PLAN OFTEN GRAPPLING WITH LOW PROFIT MARGINS SMALL RESTAURATEURS SAY THEY ARE AMONG THE HARDESTHIT BY THE PLAN AND SO FAR MR CLINTON'S PROPOSAL TO SUBSIDIZE HEALTH CARE FOR THOUSANDS OF SMALL BUSINESSES APPARENTLY HAS SCARCELY EASED THEIR FEARS OR DENTED THEIR OPPOSITION INSTEAD INDUSTRY OFFICIALS COMMONLY PREDICT DISASTER AS MANY AS 800000 OF THE INDUSTRY'S NINE MILLION WORKERS MAY BE JOBLESS AND HUNDREDS OF RESTAURANTS MAY HAVE TO SHUT DOWN WARNS THE NATIONAL RESTAURANT ASSOCIATION A TRADE GROUP BASED IN WASHINGTON DC UNDER PRESIDENT CLINTON'S PLAN ALL EMPLOYERS WOULD HAVE TO PAY AT LEAST 80 OF THE COST OF BASIC HEALTHCARE FOR FULLTIME EMPLOYEES WORKERS WOULD PAY THE REMAINDER THROUGH PAYROLL DEDUCTIONS PARTTIME WORKERS WOULD BE COVERED BY SMALLER EMPLOYER CONTRIBUTIONS LOWWAGE BUSINESSES WITH 75 OR FEWER EMPLOYEES WILL RECEIVE SUBSTANTIAL SUBSIDIES DEPENDING ON THE AVERAGE WAGE FOR THE SMALLEST FIRMS THAT PAY THE LOWEST WAGES SUCH AS RESTAURANTS THE PERCENT OF PAYROLL DEVOTED TO HEALTH CARE MAY BE AS LOW AS 35 A WHITE HOUSE BRIEFING PAPER SAYS THAT AMOUNTS TO 350 A YEAR PER WORKER FOR A COMPANY WITH AVERAGE WAGES OF 10000 OR LESS THAN 1 A DAY PER EMPLOYEE TO BE SURE EVEN IF THE CLINTON PLAN IS PASSED ITS PROVISIONS ARE LIKELY TO BE ALTERED IN THE LEGISLATIVE PROCESS BUT MANY RESTAURANTS MAINTAIN THAT AS THE PROPOSAL NOW STANDS EVEN THE SUBSIDIZED HEALTH CARE IS MORE THAN THEY CAN HANDLE I JUST CAN'T AFFORD IT SAYS RICHARD BREW OWNER OF BREW'S RESTAURANT NEW YORK HE SAYS THAT THE INCREASED EXPENSES OF COMPLYING WITH PRESIDENT CLINTON'S HEALTHCARE PLAN WOULD SIMPLY ADD TO THE SPIRALING COSTS OF DOING BUSINESS IN A BIG CITY LIKE NEW YORK THERE'S ALWAYS A NEW EXPENSE HE SAYS I'M LOSING MONEY NOW I DON'T KNOW HOW I CAN AFFORD THIS MUCH LONGER GLAMOUR AND GLITZ MAY SURROUND FIVESTAR RESTAURANTS SUCH AS BOULEY IN NEW YORK AND SPAGO IN BEVERLY HILLS BUT ABOUT THREEQUARTERS OF ALL RESTAURANTS HAVE ANNUAL SALES OF LESS THAN 500000 AND THESE ESTABLISHMENTS HAVE AVERAGE PROFITS OF 27 OF SALES THE NATIONAL RESTAURANT ASSOCIATION SAYS MANY RESTAURANTS FUDGE ON THEIR PROFITS FOR TAX PURPOSES TAX OFFICIALS SAY THE TRADE GROUP SAYS THAT RESTAURANTS AS A WHOLE AVERAGE ONLY 47000 IN ANNUAL SALES PER EMPLOYEE AND THAT THE MAJORITY DON'T OFFER HEALTHCARE COVERAGE WITH AVERAGE NET PROFIT OF 27 A RESTAURANT WITH SALES UNDER 500000 CAN'T AFFORD A 35 INCREASE IN LABOR COSTS SAYS STEPHEN ELMONT PRESIDENT OF THE NATIONAL RESTAURANT ASSOCIATION MOREOVER THE SUBSIDY IS A TEMPORARY MEASURE HE NOTES ONCE THE GOVERNMENT PHASES OUT THE ASSISTANCE THE BURDEN ON BUSINESSES WILL BE EVEN GREATER HE SAYS THE IDEA THAT YOU CAN INCREASE MENU PRICES TO MAKE UP FOR INCREASES IN EXPENSES IS OUT SAYS NINO SETTEPANI COOWNER OF CAFFE BONDI A NEW YORK RESTAURANT THAT SPECIALIZES IN TRADITIONAL ITALIAN FOOD AFTER BUMPER SALES IN ITS FIRST YEAR IN 1990 CAFFE BONDI SAYS IT SAW ITS BUSINESS DECLINE SHARPLY OVER THE NEXT TWO WE ABSORBED COSTS TO ATTRACT CUSTOMERS SAYS MR SETTEPANI NOW THAT SALES HAVE PICKED UP AGAIN THIS YEAR HE DOESN'T WANT TO DRIVE CUSTOMERS AWAY BY INCREASING PRICES HE SAYS RESTAURANTS HAVEN'T HAD IT EASY FOR THE LAST FEW YEARS SAYS TIM ZAGAT COPUBLISHER OF THE ZAGAT RESTAURANT SURVEYS IN NEW YORK MANY RESTAURANTS HAVE BEEN HIT HARD BY THE SLOW ECONOMY AND THE RECENT CUTBACK IN TAX DEDUCTIONS FOR BUSINESS ENTERTAINMENT AND BECAUSE CUSTOMERS HAVE BECOME EXTREMELY SENSITIVE TO VALUE RESTAURANT OWNERS FELT PRESSURE TO KEEP PRICES FROM RISING HE ADDS FOR GOLD COAST DOGS THE MANDATED COSTS OF HEALTH CARE WOULD FOLLOW A SERIES OF LOCAL TAX SLAPS THAT HAVE NIBBLED PROFITS SAYS MR POTEKIN IN JUNE CHICAGO IMPOSED A TAX ON THE SALES OF SODAS GOLD COAST SAYS THIS COSTS EACH STORE ABOUT 30 A WEEK LAST YEAR THE CITY INTRODUCED A BUSINESS TAX TO PAY FOR REPAIRS AND EXPANSION OF MCCORMICK PLACE CHICAGO'S CONVENTION CENTER THE TAX WHICH AMOUNTS TO 1 OF ALL SALES COSTS GOLD COAST AN ADDITIONAL 500 A MONTH SAYS MR POTEKIN THESE NEW EXPENSES ARE ALMOST CERTAIN TO REDUCE PROFITS AND SLOW DOWN NEW HIRES MR POTEKIN SAYS PRESIDENT CLINTON'S PLAN WILL CREATE MORE PROBLEMS FOR SMALL BUSINESS THAN IT WILL SOLVE HE PREDICTS OTHERS ECHO THIS POINT OF VIEW BREW'S IN NEW YORK SAYS IT ONCE PROVIDED A WHOLE MENU OF BENEFITS INCLUDING A PROFITSHARING PLAN AND A HOSPITALIZATION PLAN FOR ALL ITS EMPLOYEES INCLUDING BUSBOYS AND DISHWASHERS BUT AS ITS PROFIT DECLINED IT SAYS IT HAS BEEN FORCED TO SCALE BACK BENEFITS I DON'T KNOW WHERE WE'RE GOING TO FIND ALL THIS ADDITIONAL MONEY SAYS MR BREW THE PUB OWNER MIRABELLE A RESTAURANT BASED IN BOSTON THAT OFFERS CONTEMPORARY EUROPEAN CUISINE KNOWS EXACTLY HOW IT WILL RESPOND TO THE CLINTON PLAN IT SAYS IT WILL HIRE FEWER WORKERS ESPECIALLY PARTTIMERS EVEN EXISTING EMPLOYEES MAY HAVE TO WORK FEWER HOURS SAYS OWNER STEPHEN ELMONT WHO ALSO HEADS THE NATIONAL RESTAURANT ASSOCIATION OF COURSE NOT ALL RESTAURANTS WOULD BE HURT NEW YORK'S TRENDY UNION SQUARE CAFE SAYS IT OFFERS HEALTH INSURANCE TO ALL OF ITS 90 EMPLOYEES FOR THOSE WHO HAVE BEEN EMPLOYED FOR TWO YEARS OR MORE THE RESTAURANT PAYS THE FULL PREMIUM FOR MORE RECENTLY HIRED EMPLOYEES IT PAYS 50 WE'VE ALWAYS PROVIDED INSURANCE FOR OUR EMPLOYEES BECAUSE THAT'S THE RIGHT THING TO DO SAYS DANNY MEYER OWNER OF UNION SQUARE BESIDES IT HAS HELPED KEEP PEOPLE FOR THE LONG TERM HE ADDS UNION SQUARE'S HEALTHCARE EXPENSES HAVE TRIPLED IN THE PAST SIX YEARS AND NOW ACCOUNT FOR ABOUT 3 OF GROSS REVENUE MR MEYER SAYS BUT THE RESTAURANT IS PROFITABLE AND HAS NO PLANS OF SCALING BACK ITS BENEFITS HE ADDS SAYS THE ENTREPRENEUR FOR RESTAURANTS TO SAY THAT THEY CAN'T PROVIDE BENEFITS AND BE PROFITABLE IS HOGWASH 9311110136 931111 SMALL STOCK FOCUS REPORT ON ORDERS BOOSTS CHIP STOCKS HELPING REST OF MARKET SOLIDIFY GAINS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK CHIP MAKERS JUMPED AFTER A STRONG REPORT ON BOOKTOBILL RATIOS LENDING SUPPORT TO SMALLCOMPANY PRICES OVERALL OBSERVERS SAID SMALL ISSUES ELSEWHERE CONTINUED TO SOLIDIFY GAINS AFTER A SELLOFF LAST WEEK DESPITE HIGHER INTEREST RATES ON THE HEELS OF WHAT SOME VIEW AS MILDLY DISAPPOINTING INFLATION DATA THE RUSSELL 2000 INDEX A BAROMETER OF THE PERFORMANCE OF SMALLCOMPANY STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE OTHER MAJOR EXCHANGES GAINED 120 POINTS OR 047 TO 25698 ON NASDAQ THE COMPOSITE INDEX ADDED 666 POINTS OR 087 TO 77650 ADVANCING ISSUES OUTNUMBERED DECLINERS 1634 TO 1310 ON NASDAQ NATIONAL MARKET VOLUME OF 254374800 SHARES AND TOTAL NASDAQ VOLUME OF 303854000 SHARES THE TECH STOCKS RALLIED SUBSTANTIALLY FOLLOWING THE BOOKTOBILL SAID JIM BELLINI DIRECTOR OF EQUITY TRADING AT DAIN BOSWORTH INC THERE WAS A BROAD SPILLING OVER INTO OTHER SECTORS THE SEMICONDUCTOR INDUSTRY'S OCTOBER BOOKTOBILL INDICATOR WHICH SHOWS THE RATIO OF SHIPMENTS OF CHIPS TO ORDERS WAS REPORTED AT 100 DOWN FROM 101 IN SEPTEMBER BUT ABOVE MANY MARKETWATCHERS' EXPECTATIONS AMONG SMALLER CHIP MAKERS KLA INSTRUMENTS CORP SAN JOSE CALIF ADDED 2 1/4 TO 23 CYPRESS SEMICONDUCTOR CORP NYSE ALSO OF SAN JOSE ROSE 3/4 TO 12 1/2 AND LATTICE SEMICONDUCTOR CORP HILLSBORO ORE CLIMBED 5/8 TO 16 1/8 IN ECONOMIC NEWS THE GOVERNMENT SAID CONSUMER PRICES ROSE BY 04 LAST MONTH IN LINE WITH EXPECTATIONS BUT THE CORE RATE OF INFLATION WHICH EXCLUDES FOOD AND ENERGY PRICES WAS UP 03 ALTHOUGH ANALYSTS HAD LOOKED FOR AN INCREASE OF 02 A SEPARATE REPORT SHOWED THAT INITIAL CLAIMS FOR UNEMPLOYMENT BENEFITS ROSE BY 14000 IN THE LATEST WEEK BONDS REACTED BADLY TO THE NEWS WITH THE LONG BOND DROPPING MORE THAN 3/4 POINT SENDING ITS YIELD UP TO 620 HUGH A JOHNSON JR CHIEF INVESTMENT STRATEGIST AT FIRST ALBANY CORP SAID MUCH OF TODAY'S HIGHER MOVE WAS ATTRIBUTABLE TO A BOUNCE BACK FROM LAST WEEK'S ROCKY ROAD BY LAST FRIDAY THE RUSSELL 2000 HAD DROPPED 271 FROM ITS HIGH OF 26017 SET NOV 2 THE INDEX HAS RECOVERED 154 SINCE FRIDAY THESE STOCKS HAVE BEEN EXTRAORDINARILY VOLATILE BECAUSE THE OUTLOOK FOR THE ECONOMY IS SO VOLATILE MR JOHNSON SAID THE ECONOMY BRIGHTENS AND THEN DARKENS HE ADDED THAT AN IMPROVING ECONOMY IS GOOD NEWS FOR SMALLER ISSUES BECAUSE MANY OF THEM CAN FIND NICHES IN AN EXPANDING ECONOMIC CLIMATE NEWS THAT DATA RACE INC WILL UNVEIL ITS REDICELL FAMILY OF CELLULARPHONE DATA ADAPTERS SENT THE SAN ANTONIO COMPANY'S STOCK PRICE UP 2 3/8 TO 11 1/4 IN EARNINGS NEWS WIND RIVER SYSTEMS INC DROPPED 3 3/8 TO 6 THE ALAMEDA CALIF SOFTWARE DEVELOPER POSTED A THIRDQUARTER LOSS OF THREE CENTS A SHARE ON MORE SHARES COMPARED WITH EARNINGS OF ONE CENT A SHARE A YEAR EARLIER INITIAL PUBLIC OFFERINGS CONTINUED TO PERFORM WELL PETSTUFF INC CLOSED AT 16 3/4 ABOVE ITS OFFERING PRICE OF 16 A SHARE THE OPERATOR OF PET FOOD AND SUPPLY STORES SAYS IT PLANS TO USE PROCEEDS TO FINANCE ITS EXPANSION AS WELL AS FOR WORKING CAPITAL REQUIREMENTS BUT YESTERDAY'S HIGHFLYING NEW ISSUE BOSTON CHICKEN WHICH MORE THAN DOUBLED TO 48 1/2 ON ITS FIRST TRADING DAY FELL BACK 2 TO 46 1/2 YESTERDAY NASDAQ NATIONAL MARKET STOCKS THAT SET HIGHS FOR THE YEAR TO DATE TOTALED 122 WHILE 40 ISSUES SET LOWS 9311110135 931111 WHO'S NEWS ATMOS ENERGY INC ATMOS ENERGY INC DALLAS THIS NATURALGAS COMPANY NAMED TWO NEW DIRECTORS CARL S QUINN 62 YEARS OLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF INTERSTATE NATURAL GAS CO HOUSTON AND RICHARD WARE II 47 PRESIDENT OF AMARILLO NATIONAL BANK THEY SUCCEED WILLIAM H QUACKENBUSH WHO RETIRED AND RONALD L FANCHER WHO RESIGNED FROM THE BOARD EARLIER THIS YEAR WHEN HE BECAME THE COMPANY'S PRESIDENT AND CHIEF OPERATING OFFICER SEPARATELY ATMOS NAMED GLEN BLANSCET 36 CORPORATE SECRETARY SUCCEEDING DONALD JAMES 46 WHO REMAINS GENERAL COUNSEL MR BLANSCET REMAINS ASSISTANT GENERAL COUNSEL O CARL BROWN 46 FORMERLY DIRECTOR OF FINANCIAL PLANNING WAS NAMED VICE PRESIDENT OF FINANCIAL PLANNING WYNN MCGREGOR 40 FORMERLY DIRECTOR OF HUMAN RESOURCES WAS NAMED VICE PRESIDENT OF HUMAN RESOURCES 9311110134 931111 TECHNOLOGY ELECTRONICS TRADE DEFICIT WIDENED IN THE FIRST HALF SANTA CLARA CALIF THE US TRADE DEFICIT IN ELECTRONIC PRODUCTS AND SERVICES MORE THAN DOUBLED IN THE FIRST HALF OF 1993 TO 52 BILLION FROM 21 BILLION A YEAR EARLIER THE AMERICAN ELECTRONICS ASSOCIATION SAID THE TRADE GROUP ADDED THAT THE FIRSTHALF DEFICIT NARROWED FROM THE 76 BILLION DEFICIT POSTED IN THE 1992 SECOND HALF THE US ELECTRONICS TRADE DEFICIT WITH JAPAN WIDENED TO ABOUT 121 BILLION FROM 104 BILLION A YEAR EARLIER HOWEVER THE FIRSTHALF TRADE BALANCE WITH THE EUROPEAN COMMUNITY IMPROVED REGISTERING A 75 BILLION SURPLUS UP FROM A 72 BILLION SURPLUS A YEAR EARLIER OVERALL THE TRADE BALANCE SHOWS PROGRESS IN ACCESSING JAPANESE TECHNOLOGY MARKETS IS ELUSIVE AT BEST SAID AEA CHAIRMAN ROBERT SALDICH WHO IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RAYCHEM CORP 9311110133 931111 WHO'S NEWS ROADWAY SERVICES INC ROADWAY SERVICES INC AKRON OHIO DANIEL J SULLIVAN 47 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER AT THE TRANSPORTATION HOLDING COMPANY EFFECTIVE JAN 1 MR SULLIVAN IS CURRENTLY SENIOR VICE PRESIDENT OF ROADWAY AND PRESIDENT OF THE COMPANY'S NATIONAL CARRIER GROUP AS PRESIDENT MR SULLIVAN SUCCEEDS JOSEPH M CLAPP 57 WHO WILL REMAIN CHAIRMAN AND WILL BECOME CHIEF EXECUTIVE OFFICER A NEW POST AT THE COMPANY THE POSITION OF OPERATING CHIEF ALSO IS NEW SEPARATELY DOUGLAS A WILSON 48 SENIOR VICE PRESIDENT OF FINANCE AND PLANNING WAS NAMED TO THE ADDITIONAL POST OF CHIEF FINANCIAL OFFICER A NEW POST AT ROADWAY JOHN P CHANDLER 50 VICE PRESIDENT OF ADMINISTRATION WAS NAMED TO THE ADDITIONAL POST OF TREASURER SUCCEEDING MICHAEL NEWTON 59 WHO'S RETIRING 9311110132 931111 BIOMATRIX SYNTEX SIGN PACT RIDGEFIELD NJ BIOMATRIX INC SAID IT SIGNED A DISTRIBUTION AGREEMENT WITH SYNTEX PHARMACEUTICALS INTERNATIONAL LTD UNDER WHICH SYNTEX WILL MARKET BIOMATRIX'S SYNVISC DRUG IN EUROPE SYNVISC IS INJECTED INTO JOINTS TO TREAT PATIENTS WITH OSTEOARTHRITIS A DEGENERATIVE DISEASE SYNTEX PHARMACEUTICALS IS A UNIT OF SYNTEX CORP PALO ALTO CALIF BIOMATRIX SAID IT WILL GET ABOUT 12 MILLION UPFRONT AND ABOUT 45 MILLION IN MILESTONE PAYMENTS TIED TO THE LAUNCH OF SYNVISC BY SYNTEX PHARMACEUTICALS IN RETURN SYNTEX WILL RECEIVE EXCLUSIVE MARKETING RIGHTS FOR SYNVISC IN FRANCE BRITAIN IRELAND AND SCANDINAVIA 9311110131 931111 COMMODITIES COTTON PRICES ARE BOOSTED AS AGRICULTURE REPORT SHARPLY REDUCES ESTIMATES OF THIS YEAR'S CROP BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COTTON FUTURES PRICES SURGED AFTER THE US AGRICULTURE DEPARTMENT SHARPLY REDUCED ITS ESTIMATE OF THIS YEAR'S CROP AT NEW YORK'S COTTON EXCHANGE THE ACTIVELY TRADED DECEMBER COTTON FUTURES CONTRACT WAS UP 132 CENTS TO 5767 CENTS A POUND THE RALLY CAME AS A SHOCK TO COTTON TRADERS WHO HAVE WATCHED THE MARKET FALL SOMEWHAT STEADILY SINCE AUGUST WHEN THE PRICE OF THE DECEMBER CONTRACT PEAKED AT ABOUT 63 CENTS A POUND THE MARKET HAD BEEN DOMINATED BY BEARISH SENTIMENT BECAUSE OF WEAK COTTON IMPORTS BY SUCH RECESSIONRIDDEN ASIAN COUNTRIES AS JAPAN AND KOREA IN A REPORT RELEASED AFTER TRADING TUESDAY THE USDA REDUCED ITS ESTIMATE OF THE US COTTON CROP TO 163 MILLION BALES MOST ANALYSTS HAD EXPECTED THE USDA TO PROJECT A CROP OF ABOUT 167 MILLION BALES IF WE PROJECT THOSE NUMBERS ONTO SUPPLY AND DEMAND IT'S CLEAR THAT THE DELTA AND SOUTHERN COTTONS THE STAPLE OF THE DOMESTIC MILLS WILL BE VIRTUALLY SOLD OUT BY JULY THE END OF THE CURRENT CROP YEAR SAID THOMAS MUELLER COTTON ANALYST FOR MERRILL LYNCH COTTON TRADERS SHRUGGED OFF A COMPONENT OF THE USDA MONTHLY CROP REPORT IN WHICH THE AGENCY RAISED ITS ESTIMATE OF THE CHINESE COTTON CROP TO 19 MILLION BALES FROM LAST MONTH'S 175 MILLION BALES MOST COTTON TRADERS THINK THE PROJECTION IS OVERLY OPTIMISTIC ANALYSTS' ESTIMATES OF THE ACTUAL SIZE OF THE CHINESE CROP RANGE FROM 165 MILLION BALES TO 19 MILLION BALES WITH MOST NEAR THE LOWER END OF THE RANGE IN ANOTHER SIGNIFICANT PART OF THE USDA REPORT THE DEPARTMENT LOWERED ITS ESTIMATE OF THE PAKISTANI COTTON CROP BY ABOUT 900000 BALES MANY US COTTON FARMERS HAVE MADE ARRANGEMENTS TO SELL SHORT PAKISTANI COTTON IN WAGERS THAT THE PRICE OF THE COTTON WOULD FALL AFTER THE USDA'S REPORT ITS PRICE IS LIKELY TO RISE INSTEAD AND SOME US FARMERS ARE NOW SCRAMBLING TO FIND COTTON TO DELIVER ON THEIR SHORT POSITIONS ANALYSTS SAID WITH HIGHQUALITY US COTTON IN SHORT SUPPLY ANALYSTS EXPECT COTTON PRICES TO RISE SUBSTANTIALLY DURING THE NEXT FEW MONTHS I WOULD LOOK FOR PRICES TO MOVE INTO THE MIDTOHIGH 60S FOR THE MARCH CONTRACT BY EARLY NEXT YEAR MR MUELLER SAID THAT WOULD BE A FAIRLY NICE MOVE IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS DESPITE A MAJOR SURGE IN GRAIN FUTURES PRICES AND IN THE COMMODITY RESEARCH BUREAU INDEX OF 21 COMMODITY FUTURES CONTRACTS GOLD PRICES ROSE ONLY MODESTLY AS A RULE GOLD IS THOUGHT TO BE VERY SENSITIVE TO UPTICKS IN INFLATION ANALYSTS SAID THE WEAK RESPONSE OF GOLD TO THE STRENGTH OF OTHER COMMODITY PRICES WAS AN INDICATION THAT THE GOLD MARKET ISN'T WORRIED ABOUT INFLATION AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY WAS UP 80 CENTS TO 37740 AN OUNCE THE MARKET WAS VERY HESITANT TO REACT TO INFLATIONARY INDEXES WHICH IS INTERESTING IN ITSELF SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THE GOLD MARKET SEEMS TO BE TELLING US THAT THIS IS ISOLATED NOT AN OVERALL INDICATION OF INFLATION ENERGY THE SPECTER OF IRAQI OIL AGAIN TOOK ITS TOLL ON CRUDE OIL FUTURES PRICES IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE DESPITE WHAT MANY VIEWED AS A BULLISH REPORT ON US OIL INVENTORY LEVELS DECEMBER CRUDE FELL 11 CENTS A BARREL TO SETTLE AT 1655 GASOLINE FOR DECEMBER DELIVERY LOST 053 CENT TO CLOSE AT 4541 CENTS A GALLON BUT THE WEAKNESS IN GASOLINE AND CRUDE DIDN'T CARRY OVER INTO HEATING OIL WHERE A DECLINE IN REFINERY RUNS HELPED PUSH DECEMBER HEATING OIL TO 5069 CENTS UP 023 CENT IRAQ IS TO RESUME TALKS WITH THE UNITED NATIONS THIS WEEKEND IN ITS CONTINUING EFFORT TO REENTER THE WORLD OIL MARKET THAT COUNTRY WAS BANNED FROM SELLING OIL AFTER IT INVADED KUWAIT IN AUGUST 1990 9311110130 931111 WEDNESDAY'S MARKETS STOCKS GAIN 2348 POINTS NAFTA CITED BOND PRICES DECLINE ON ECONOMIC DATA DOLLAR FINISHES LOWER BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES RALLIED AS INVESTORS TURNED BULLISH ON THE PROSPECTS OF THE NORTH AMERICAN FREE TRADE AGREEMENT BUT INTEREST RATES CLIMBED AFTER A GOVERNMENT REPORT SHOWED THAT CONSUMER PRICES ROSE BRISKLY LAST MONTH THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE JUMPED 2348 POINTS TO 366355 STANDARD & POOR'S 500STOCK INDEX GAINED 339 TO 46372 AND THE NASDAQ COMPOSITE INDEX SOARED 666 TO 77650 LAWRENCE KEBLUSEK DIRECTOR OF INVESTMENT COUNSELING AT NORTHERN INVESTMENT COUNSELORS SAID STOCKS WERE HELPED BY SIGNS THAT NAFTA HAS A BETTER CHANCE OF PASSING AFTER TUESDAY NIGHT'S DEBATE BETWEEN VICE PRESIDENT AL GORE AND ROSS PEROT WHO VIGOROUSLY OPPOSES NAFTA I THINK IN THE BACK OF INVESTORS' MINDS THERE WAS A CONCERN THAT NAFTA WOULD FAIL SAID MR KEBLUSEK BUT I THINK PEROT SHOWED A SIDE OF HIS CHARACTER TUESDAY NIGHT WHICH WAS VERY NEGATIVE AND THE INVESTMENT COMMUNITY BY AND LARGE FELT THAT GORE DID A PRETTY GOOD JOB THE EUPHORIA AMONG STOCK INVESTORS DIDN'T SPILL OVER TO BONDS HOWEVER BOND PRICES SLUMPED AND THE YIELD ON THE TREASURY'S 30YEAR BOND SURGED TO 620 FROM 614 TUESDAY FOLLOWING A LABOR DEPARTMENT REPORT THAT CONSUMER PRICES CLIMBED 04 LAST MONTH NANCY LAZAR AN ECONOMIST AT ISI GROUP INC A CONSULTING FIRM SAID SHE THINKS THE BOND MARKET IS GOING THROUGH A MINIINTERESTRATE HICCUP IT'S A COMBINATION OF THE ECONOMY LOOKING A BIT STRONGER AND COMMODITY PRICES SEEMING FIRMER THAT IS GIVING THE BOND MARKET A HEADACHE SHE SAID YESTERDAY THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS SURGED 320 POINTS TO 22095 ON THE BACK OF A SHARP RISE IN GRAIN PRICES BUT MS LAZAR SAID SHE THINKS THE RECENT RISE IN INTEREST RATES WILL BE SHORTLIVED SHE SAYS THE ECONOMY IS VERY SENSITIVE TO INTEREST RATES AND AT SOME POINT THE UPTURN IN RATES WILL HURT GROWTH ONE BAROMETER SHE SUGGESTS INVESTORS WATCH CLOSELY IS MORTGAGE REFINANCINGS IF THE FRANTIC REFINANCING PACE SLOWS THEN IT WILL BE A SIGN HIGHER INTEREST RATES ARE INDEED PRESSURING THE ECONOMY SHE SAID WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 028 TO 11051 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2834 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1197 ISSUES ROSE AND 864 FELL BOND PRICES SLID THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL ABOUT 3/4 POINT OR APPROXIMATELY 750 FOR EACH 1000 FACE AMOUNT THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16885 MARKS AND 10715 YEN COMPARED WITH 16928 MARKS AND 10793 YEN TUESDAY 9311110129 931111 REVIEW & OUTLOOK EDITORIAL AL GORE'S BIG KNOCKOUT WE DON'T KNOW WHAT THE FUTURE HOLDS FOR AL GORE BUT HE MAY HAVE EARNED HIMSELF A CORNER OF HISTORY TUESDAY NIGHT HE SURELY WON WHAT THE TWO MEN SHOWED UP TO DO HOLD A DEBATE ON NAFTA BUT PERHAPS SOMETHING ELSE HAPPENED TOO FROM WHERE WE WERE SITTING IT LOOKED BY THE END AS IF ROSS PEROT MAY HAVE FALLEN THROUGH THE ROPES AND OUT OF THE AMERICAN POLITICAL RING ALTOGETHER IF SO THE IMPLICATIONS OF TUESDAY NIGHT'S CONTEST COULD BE HUGE FIRST LET'S LOOK AT THE DEBATE'S OVERNIGHT NUMBERS THESE FIGURES ARE FROM A CNN/USA TODAY/GALLUP POLL OF 357 ADULTS WHO WATCHED MARGIN OF ERROR IS 6 SUPPORT FOR NAFTA GREW TO 57 FROM 34 OPPOSITION BARELY BUDGED BUT MOST INTERESTINGLY THE UNDECIDEDS FELL TO ONLY 7 FROM 28 EQUALLY TELLING MR PEROT'S UNFAVORABLE RATING ROSE TO 51 FROM A PREDEBATE 39 IT'S ONE THING FOR PEOPLE TO THINK HE SIMPLY LOST BUT THE POOR IMPRESSION MAY CAUSE LONGERLASTING PROBLEMS FOR THE PEROT FUTURE WHAT HE REPRESENTS ON NAFTA SPECIFICALLY IS INVINCIBLE IGNORANCE IT IS INDEED POSSIBLE TO ARGUE AND EVEN WORRY ABOUT JOB DISLOCATIONS THOUGH MOST OF THE US JOBS LOST UNDER NAFTA WOULD EVENTUALLY DISAPPEAR ANYWAY UNDER PRESSURE FROM GLOBAL COMPETITORS WITH OR WITHOUT NAFTA IT IS QUITE SOMETHING ELSE FOR MR PEROT TO SAY PEOPLE WHO DON'T MAKE ANYTHING CAN'T BUY ANYTHING AND THEN TO ARGUE THAT WE IMPOSE A SOCIAL TARIFF ON MEXICO UNTIL THE PEOPLE WHO DON'T MAKE ANYTHING AND CAN'T BUY ANYTHING RAISE THEIR STANDARD OF LIVING TO OUR LEVEL WHICH UNDER PEROTIANOMICS MEANS EITHER THEY HAVE TO RUN VERY FAST OR WE HAVE TO STOP DEAD STOPPING THE US ECONOMY DEAD WAS THE APPROPRIATE POINT OF VICE PRESIDENT GORE GIVING MR PEROT A FRAMED PHOTOGRAPH OF SENATOR REED SMOOT AND REPRESENTATIVE WILLIS HAWLEY WHOSE FAMOUS TARIFF LIVES ON IN THE ANNALS OF INVINCIBLE IGNORANCE MR GORE SHOULD HAVE POSTERS OF THE PHOTO PRINTED AND PRESENTED TO EACH OF THE UNDECIDED MEMBERS OF CONGRESS LISTED IN THE COLUMNS NEARBY IN DISINTERRING THE GHOSTS OF SMOOTHAWLEY MR GORE GAVE BOTH PARTIES SOMETHING TO PONDER RECALL THAT SMOOT AND HAWLEY REPRESENTED A BRAND OF DUMB AND REACTIONARY REPUBLICANISM THAT CONSIGNED THE PARTY TO ALSORAN OBLIVION FROM 1930 THROUGH ROBERT TAFT THOSE ROLES ARE REVERSED NOW AS THE GEPHARDTBONIOR DEMOCRATS ATTEMPT WITH THEIR VOTE AGAINST FREE TRADE AT THE DAWN OF THE 21ST CENTURY TO SHUT OFF THE PARTY'S RESPIRATOR CONSIDER FOR EXAMPLE THAT 25 OF THE 28 MEMBERS OF CONGRESS FROM NEW YORK NEW JERSEY AND CONNECTICUT ARE GOING TO VOTE AGAINST NAFTA A FORTNIGHT AFTER LOSING TWO OF THEIR HISTORICALLY DEMOCRATIC STRONGHOLDS TO THE REPUBLICANS BY WAVING SMOOTHAWLEY MR GORE IS WARNING THE DEMOCRATS TO STOP BUT THESE ARE LEMMINGS EVEN MORE ASTONISHING WOULD BE THE SIGHT OF THE UNDECIDED REPUBLICANS DIVING OVER THE CLIFF WITH THEM SUCH AS GOP CALIFORNIA FRESHMAN JAY KIM CONGRESS'S FIRST KOREANAMERICAN YESTERDAY SAID HE'LL SUPPORT NAFTA ONLY IF MR CLINTON GIVES HIM A TREATY TO SHIP CRIMINAL ILLEGAL MEXICANS BACK ACROSS THE BORDER IT WOULD BE EVEN MORE ASTONISHING TO SEE HOUSE REPUBLICANS VALIDATING ROSS PEROT'S POLITICAL LEGITIMACY AFTER MR GORE MAY HAVE KNOCKED OUT THEIR SCARIEST 1996 PROBLEM THE PEROT INSURGENCY IN NEW JERSEY SOME 73 OF PEROT SUPPORTERS GAVE THEIR VOTE TO THE GOP'S CHRISTIE WHITMAN AND FOR GEORGE ALLEN IN VIRGINIA IT WAS 75 SO WHILE PEROT VOTERS SEEM WILLING TO GO WITH CREDIBLE GROWTHEMPHASIZING REPUBLICAN CANDIDATES HOUSE DEMOCRATS ARE ON THE BRINK OF VOTING ROSS PEROT INTO THEIR MIDST THE CLINTON WHITE HOUSE TOOK A SIGNIFICANT RISK WITH THIS DEBATE AND DESERVES A LARGE MEASURE OF CREDIT ESSENTIALLY THEY DETAILED AL GORE TO TAKE ON A FORMIDABLE BULLY AND IN THE EVENT EXPOSED THE REAL FACE OF THE ANTINAFTA MOVEMENT IT IS SEEN CLEARLY TO BE DETERMINEDLY IGNORANT OF GROWTH'S IMPERATIVES IT IS NATIVIST TESTY WOULD YOU EVEN KNOW THE TRUTH IF YOU SAW IT AND NOTABLY MEANSPIRITED A HABIT OF MIND THAT'S PERVADED THE MOVEMENT'S RIGHT AND LEFT WINGS BILL CLINTON'S PRESIDENCY HAS NEVER BEEN SO ON TRACK AS IT IS NOW WITH ITS FIGHT FOR NAFTA AL GORE'S RUN THROUGH ROSS PEROT EVEN IN A MOMENT OF EXULTATION THWACKING HIS OPPONENT BY CITING NAFTA'S SUPPORT BY THE DISTINGUISHED RUSH LIMBAUGH HAS STOKED UP THE ENGINE NICELY FOR THE RUN TO NEXT WEDNESDAY'S VOTE 9311110128 931111 INTERNATIONAL TUSSAUDS MAY BUY STAKE IN SPAIN'S TIBIGARDENS MADRID TUSSAUDS GROUP OF BRITAIN AND THREE SPANISH ELECTRICAL COMPANIES MAY ACQUIRE PART OF JAVIER DE LA ROSA'S STAKE IN TIBIGARDENS THE AMUSEMENT PARK THAT THE CATALAN FINANCIER IS BUILDING WITH US BREWER ANHEUSERBUSCH COS IN CATALONIA TUSSAUDS A UNIT OF PEARSON PLC OPERATES MADAME TUSSAUD'S WAX MUSEUM AND THE LONDON PLANETARIUM THE CATALAN GOVERNMENT HAS SOUGHT TO REPLACE MR DE LA ROSA AS THE VENTURE'S MAJORITY SHAREHOLDER EVER SINCE A FINANCIAL SCANDAL INVOLVING HIM AND THE KUWAIT INVESTMENT OFFICE BLEW UP LATE LAST YEAR THE STATE LENDING AGENCY FOR EXAMPLE CONDITIONED THE DISBURSEMENT OF A 15 BILLION PESETAS 1107 MILLION CREDIT FOR THE PARK ON THE REPLACEMENT OF MR DE LA ROSA AS MAJORITY SHAREHOLDER A SPOKESWOMAN FOR MR DE LA ROSA'S GRAND TIBIDABO LEISURE COMPANY SAID THE ELECTRICAL COMPANIES WERE DISCUSSING ACQUIRING A 10 SHARE EACH OF THE THEME PARKS' HOLDING COMPANY GRAND PENINSULA FOR A TOTAL OF 45 BILLION PESETAS BUT SPOKESWOMEN FOR THE UTILITIES AND TUSSAUDS SAID NO AGREEMENT HAS YET BEEN REACHED 9311110127 931111 BANKAMERICA UNIT SENIOR NOTES SAN FRANCISCO BANKAMERICA CORP SAID ITS BANK OF AMERICA UNIT PLACED 125 MILLION OF PRIVATE PLACEMENT FINANCINGS IN SENIOR NOTES FOR BARCELONA HOLDING OLYMPIC SA THE JOINT VENTURE BETWEEN THE KINGDOM OF SPAIN AND THE CITY OF BARCELONA THAT DEVELOPED THE 1992 SUMMER OLYMPICS THE NOTES WERE SOLD TO EIGHT US INSTITUTIONAL INVESTORS MAINLY INSURANCE COMPANIES THE BANK ADDED 9311110126 931111 WHO'S NEWS INTERFACE INC INTERFACE INC LAGRANGE GA CHARLES EITEL 44 YEARS OLD HAS BEEN NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF INTERFACE FLOORING SYSTEMS INC A DIVISION OF THIS MODULARCARPET MAKER MR EITEL FORMERLY AN EXECUTIVE WITH COLLINS & AIKMAN INC SUCCEEDS C EDWARD TERRY WHO REMAINS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF INTERFACE'S RESEARCH AND CHEMICAL DIVISIONS 9311110125 931111 FADING PROMISE UKRAINE'S PROSPECTS ONCE BRIGHT GROW DIM AS ITS ECONOMY FALTERS A SLOW PACE OF REFORM CAUSES INFLATION SCARCITY OF FUEL IN RESOURCERICH STATE SPLIT OVER LINKS WITH RUSSIA BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL KIEV WHEN UKRAINE GAINED INDEPENDENCE FROM THE COLLAPSING SOVIET UNION TWO YEARS AGO ITS FUTURE LOOKED GOLDEN RICH IN COAL AND FARMLAND BLESSED WITH PORTS ON THE BLACK SEA AND CONVENIENTLY CLOSE TO WESTERN EUROPE UKRAINE RANKED SECOND ONLY TO RUSSIA IN POPULATION RESOURCES AND PROMISE TO BECOME THE BIGGEST SUCCESS AMONG THE FORMER SOVIET STATES IT HASN'T WORKED OUT THAT WAY THE ECONOMY OF UKRAINE IS IN DEEP COLLAPSE SAYS ECONOMIC MINISTER ROMAN SHPEK INFLATION IS RUNNING ABOUT 70 A MONTH FUEL IS SO SCARCE THAT MANY FACTORIES AND EVEN BUSES IN SOME REGIONS NO LONGER RUN INVESTMENT IS AT A STANDSTILL FOREIGN RESERVES SAYS A CENTRALBANK OFFICIAL ARE NEGLIGIBLE FREEMARKET REFORM IS CAUGHT IN POLITICAL GRIDLOCK LIVING STANDARDS HAVE PLUNGED 50 SINCE 1991 UKRAINE'S CHIEF FOREIGNBUSINESS VENTURE CONSISTS OF DICKERING WITH THE WEST OVER HOW MANY BILLIONS OF DOLLARS OF AID IT CAN GET IN RETURN FOR DISMANTLING ITS NUCLEAR MISSILES TWO YEARS AGO WE REALLY BELIEVED THAT UKRAINE HAD THE BIGGEST POTENTIAL FOR ECONOMIC DEVELOPMENT SAYS SERHIY HOLOVATY A LIBERAL MEMBER OF PARLIAMENT NOW THE SITUATION IS DEVASTATING UKRAINE HAS BECOME A COUNTRY THAT VIEWS EVEN TROUBLED ECONOMIES LIKE THOSE OF POLAND AND RUSSIA AS PARAGONS OF PROGRESS UKRAINIANS AFTER INTRODUCING THEIR OWN MONEY LAST YEAR NOW REGARD THE TATTERED RUSSIAN RUBLE AS A HARD CURRENCY IT IS AT LEAST NEGOTIABLE WITHIN THE COMMONWEALTH OF INDEPENDENT STATES FOR GOODS THAT UKRAINE'S RAPIDLY DETERIORATING KARBOVANETS CAN'T BUY THE DISINTEGRATING ECONOMY HAS LEFT UKRAINE'S 52 MILLION PEOPLE ON OPPOSING SIDES OF A WIDENING POLITICAL DIVIDE OVER UKRAINE'S TIES TO RUSSIA UKRAINIAN NATIONALISTS WHO DOMINATE THE WESTERN HALF OF THE COUNTRY WANT LITTLE TO DO WITH RUSSIA WHICH IN THEIR VIEW HAS ENSLAVED AND RUINED UKRAINE FOR MOST OF THE PAST THREE CENTURIES WE WANT TO INTEGRATE INTO THE MARKETS OF EUROPE SAYS VYACHESLAV CHORNOVIL 55YEAROLD LEADER OF THE NATIONALIST RUKH MOVEMENT ANY ATTEMPT TO INTEGRATE WITH RUSSIA IS VERY DANGEROUS BUT IN EASTERN UKRAINE FLUSH WITH COAL MINES AND HEAVY INDUSTRY THE PREVAILING VIEW IS THAT RENEWED TIES WITH RUSSIA WHICH LIES JUST OVER THE BORDER MIGHT BESTOW ECONOMIC SALVATION WARNS NIKOLAI AZAROV CHIEF OF THE LABOR PARTY OF UKRAINE THE CONCERN OF WESTERN UKRAINE TO AVOID ECONOMIC UNION WITH RUSSIA MAY LEAD TO CIVIL WAR SUCH A CLASH COULD LEAD TO THE INVOLVEMENT OF THE RUSSIAN ARMY AS IT HAS IN THE FORMER SOVIET STATES OF GEORGIA AND TAJIKISTAN DIVIDED OPINIONS TURN UP EVEN AMONG PEOPLE WAITING IN A LONG BREAD LINE AT KIEV'S INDEPENDENCE SQUARE OF COURSE UKRAINE SHOULD REJOIN RUSSIA SAYS 40YEAROLD MARYA PILYPENKO IT WOULD HELP TO GET FUEL AND ELECTRICITY NO SAYS OLGA SHTEPA 50 RUSSIA AND UKRAINE HAVE BEEN TOGETHER A LONG TIME AND IT HASN'T DONE ANY GOOD BUT BOTH WOMAN AGREE AS MS PILYPENKO SAYS THAT LIVING STANDARDS SINCE 1991 HAVE GOTTEN WORSE FOR SURE UKRAINE'S MISFORTUNES OFFER A WARNING OF HOW RUSSIA ITSELF MIGHT FARE SHOULD PRESIDENT BORIS YELTSIN FALTER IN HIS AGENDA FOR REFORM SINCE BASIC INSTITUTIONAL PROBLEMS MIRROR MANY IN RUSSIA UKRAINE INHERITED FROM COMMUNIST PARTY RULE A SYSTEM IN WHICH LINES OF GOVERNMENT AUTHORITY WERE TANGLED TO SUIT THE CONVENIENCE OF SOVIET PLANNERS THERE IS NO CLEAR RULE OF LAW THERE IS NO EFFECTIVE BANKING SYSTEM HUGE UNPROFITABLE STATE ENTERPRISES DEPEND ON SUBSIDIES THAT THE COUNTRY CAN'T SUSTAIN WE SPENT MANY BILLIONS TRYING TO KEEP THE ECONOMY FLOATING WITH NO RESTRUCTURING SAYS DEPUTY FINANCE MINISTER BORIS SOBOLEV NOW HE SAYS THERE IS NO MORE CHOICE NO MORE TIME NO MORE PATIENCE OF THE PEOPLE AND NO MORE MONEY IN KIEV THE PAST YEAR SAW A GROWING CONFRONTATION BETWEEN ELECTED PRESIDENT LEONID KRAVCHUK AND THE SOVIETHOLDOVER PARLIAMENT UNLIKE RUSSIA HOWEVER UKRAINE SIDESTEPPED THE KIND OF SHOWDOWN PLAYED OUT IN MOSCOW INSTEAD DURING THE SAME WEEK IN SEPTEMBER THAT MR YELTSIN DISSOLVED RUSSIA'S PARLIAMENT MR KRAVCHUK AND UKRAINE'S LEGISLATURE AGREED TO HOLD EARLY ELECTIONS TO PARLIAMENT IN MARCH THE PRESIDENCY IN JUNE AND HOPING TO AVOID THE SHOCK OF THE THERAPY APPLIED BY MR YELTSIN IN RUSSIA UKRAINE'S PRESIDENT HAS TAKEN A SLOWER MORE COMPROMISING APPROACH TO REFORM IN THE PAST TWO WEEKS HE HAS EVEN BACKTRACKED TIGHTENING STATE CONTROL OVER PRODUCTION REINFORCING STATE ALLOCATION OF CONSUMER GOODS AND BARRING PRICE INCREASES FOR MOST GOODS THE RESULT NOT ONE PROGRAM HAS BEEN REALIZED SAYS VICTOR PYNZENYK A FORMER ECONOMIC MINISTER WHO RESIGNED IN AUGUST TO PROTEST UKRAINE'S DITHERING PREMIER LEONID KUCHMA QUIT IN SEPTEMBER CITING SIMILAR FRUSTRATIONS PRIVATIZATION FOR EXAMPLE HAS GONE SO SLOWLY THAT MOST OF IT HASN'T HAPPENED MORE THAN 90 OF ENTERPRISES STILL BELONG TO THE STATE ACCORDING TO THE NATIONAL BANK OF UKRAINE LACKING THE MARKET INCENTIVES THAT COME WITH PRIVATIZATION STATE ENTERPRISES DEPEND ON LOBBYING BOTH THE CABINET AND PARLIAMENT FOR HANDOUTS SO PARLIAMENT WHICH OVERSEES THE CENTRAL BANK KEEPS REQUISITIONING MORE MONEY THE RESULT IS AN ECONOMY CAREENING TOWARD HYPERINFLATION A WORLD BANK SENIOR ECONOMIST BASED HERE ANDERS ZEIJLON SAYS INFLATION IS THE MOST SERIOUS PROBLEM IN UKRAINE IT DESTROYS SIGNALS AND DISTORTS BEHAVIOR ASKED WHAT FRACTION OF KIEV'S BUDGET GOES FOR MILITARY SPENDING THESE DAYS THE FINANCE MINISTRY'S MR SOBOLEV LAMENTS I CANNOT TELL YOU THE ESTIMATE MADE AT THE START OF THE YEAR HAS BEEN RENDERED MEANINGLESS AMID RECALCULATIONS THAT HE SAYS ARE CONFUSING DUE TO THE MANY MANY ZEROS AT THE CENTRAL BANK HOUSED IN AN ELABORATE PRESOVIET BANK BUILDING WITH STAINEDGLASS WINDOWS AND PATTERNED TILES VITALY MYGASHKO DEPUTY HEAD OF THE INTERNATIONAL DEPARTMENT SHAKES HIS HEAD IN DESPAIR THE BANKING SYSTEM CAN'T STOP THIS PROBLEM INDEPENDENTLY HE SAYS IT'S THE PARLIAMENT THAT IS PRESSING US TO ISSUE CREDITS ASKED TO SUPPLY AN ESTIMATE OF UKRAINE'S BUDGET DEFICIT MR MYGASHKO SAYS IT'S BEYOND MY COMPREHENSION HE NOTES THAT CENTRAL BANK CHAIRMAN VIKTOR YUSHCHENKO RECENTLY THREATENED TO RESIGN LIKE HIS TWO PREDECESSORS IF THE LEGISLATURE DIDN'T STOP GRABBING CREDIT SIXTY MILES OUTSIDE OF KIEV A BRITISH AID WORKER JEREMY CHATWIN EXPLAINS HOW STATE CREDIT GOES TO WASTE MR CHATWIN HAS BEEN WORKING AT THE STATE'S 8900ACRE ISKRA STATE FARM FOR ALMOST TWO YEARS HIS MISSION DEVELOP A PILOT PROJECT TO SHOW ISKRA'S FARMERS HOW TO GROW AND MARKET VEGETABLES EFFICIENTLY ENOUGH TO SELL AT PRICES THAT ARE BOTH AFFORDABLE FOR CUSTOMERS AND PROFITABLE FOR THE FARM AS A PRODUCER OF VEGETABLES THE 38YEAROLD MR CHATWIN HAS SUCCEEDED HE HAS CARROTS CABBAGE AND BEETS READY FOR DELIVERY TO KIEV HIS VENTURE IS TURNING A PROFIT FOR THE FARM BUT AS A CATALYST OF REFORM ON ISKRA FARM HE IS ABOUT TO BAIL OUT THE PROBLEM HE EXPLAINS IS THAT DIRECTORS AT THESE STATE FARMS ENJOY A LOT OF POWER AND DON'T SEE ANY PERSONAL GAIN TO REFORM HERE WE ARE MAKING MONEY FOR THEM AND THEY'RE NOT INTERESTED HE SAYS ON THIS PARTICULAR DAY THE ISKRA DIRECTOR HAS FAILED TO SUPPLY THE DELIVERY TRUCKS NEEDED TO GET THE PRODUCE TO MARKET SO MR CHATWIN TOURS THE FIELDS WHERE HE POINTS OUT THE APPALLING USE OF UKRAINE'S FERTILE BLACK SOIL HE NOTES THAT THE FARM HAS ABOUT 2000 COWS ON 7410 ACRES IN BRITAIN IT WOULD BE 7500 COWS APART FROM MR CHATWIN'S 296ACRE PROJECT ISKRA FARM SUPPLIES TONS OF VEGETABLES TO KIEV FILLING A GOVERNMENT QUOTA AT GUARANTEED STATE PRICES BUT SPOILAGE IS 30 HIGHER THAN FOR MR CHATWIN'S OPERATION BECAUSE THERE ISN'T ANY INCENTIVE TO CARE ABOUT QUALITY THEY'RE PAID BY THE GOVERNMENT NO MATTER WHAT WITH A SUBSIDY AT THE END OF THE YEAR IF THERE'S NO PROFIT HE SAYS THE STAGNATING FARM DIRECTORS ARE TYPICAL OF MANY OTHER LINGERING BOSSES OF THE SOVIET ERA KNOWN HERE AS RED DIRECTORS ALMOST ALL OF THEM IN SECTORS FROM MANUFACTURING TO MINING ARE CLINGING TO THEIR OLD JOBS AND THE OLD SYSTEM THEY KEEP DEMANDING SUBSIDIES AND PERQUISITES REGARDLESS OF HOW THIS SAPS THE COUNTRY THE LEVERAGE OF THESE DIRECTORS WITH THE KIEV GOVERNMENT REMAINS STRONG BECAUSE STATE ENTERPRISES REMAIN THE MONOPOLY SUPPLIERS OF MOST BASIC GOODS UKRAINE HAS CHOKED OFF ITS OWN TRADE BY SADDLING EXPORTERS WITH A SYSTEM OF QUOTAS LICENSES AND HEAVY FOREIGNEXCHANGE CONTROLS THESE RESTRICTIONS APPLY TO ALMOST ALL EXPORTS INCLUDING FARM PRODUCTS AND COAL WITH EXPORTS HELD LOW THERE IS LITTLE FOREIGNEXCHANGE INCOME TO PAY FOR IMPORTS THIS BITES ESPECIALLY DEEP BECAUSE RUSSIA UKRAINE'S CHIEF SOURCE OF OIL AND GASOLINE HAS BEGUN CHARGING NEAR WORLD PRICES FOR FUEL THAT IN SOVIET DAYS IT DISPENSED WITH ALMOST NO REGARD TO MARKET VALUE UKRAINE'S ECONOMY IS STILL GEARED TO OPERATE IN GASGUZZLING SOVIET STYLE BUT DOESN'T EARN ENOUGH TO PAY FOR THE FUEL MR SHPEK THE ECONOMIC MINISTER SAYS THE TRADE CURBS ARE NEEDED TO ENSURE THAT UKRAINIANS WILL RESPONSIBLY REPATRIATE THEIR EXPORT EARNINGS AND SPEND THEM ON STAPLES INSTEAD OF LUXURIES LIKE CHOCOLATE BARS BUT MR PYNZENYK THE FORMER ECONOMIC MINISTER OFFERS AN ALTERNATIVE VIEW THAT THE MAIN FUNCTION OF EXPORT LICENSES IS TO ENRICH THOSE WHO GRANT THEM TODAY THERE'S ONLY ONE REASON FOR KEEPING EXPORT LICENSES AND THAT'S BRIBES HE SAYS IN THE EASTERN CITY OF DONETSK A CENTER OF INDUSTRIAL UNIONS LABOR LEADER MR AZAROV FILLS OUT THE PICTURE THERE IS NO VIABLE MECHANISM TO TRANSFER MONEY FROM A RUSSIAN BANK TO A UKRAINIAN ONE FOR A RUSSIAN TO TRANSFER MONEY LEGALLY TO DONETSK SAYS MR AZAROV HE WILL HAVE TO FILL A SUITCASE WITH CASH AND BRING IT TO ME BUT TO GET KIEV TO OK THIS TRANSACTION I'LL HAVE TO PAY OUT HALF THE SUITCASE MIKHAIL KRYLOV COCHAIRMAN OF THE DONETSK COAL ASSOCIATION GIVES AN EXAMPLE OF HOW KIEV STANDS IN THE WAY OF PROGRESS LAST YEAR DONETSK ARRANGED A BARTER DEAL WITH NORTHERN RUSSIA TO TRADE UKRAINIAN SUGAR FOR TIMBER NEEDED FOR DONETSK COAL MINES AT THE LAST MINUTE KIEV BANNED THE DEAL PERHAPS FOR BUREAUCRATIC REASONS PERHAPS DUE TO JOCKEYING WITH RUSSIA OVER ISSUES SUCH AS FUEL PRICES AND DIVISION OF THE UKRAINEBASED BLACK SEA FLEET THE RESULT SAYS MR KRYLOV WE DON'T HAVE ENOUGH TIMBER TO SUPPORT THE ROOFS OF THE MINES LOSS OF PRODUCTION LOSS OF LIVES MORE RECENTLY SAYS MR KRYLOV A METALLURGICAL PLANT IN DONETSK FOUND BUYERS ABROAD FOR MANY OF ITS FINISHED TOOLS BUT EXPORT PAPERWORK DRAGGED ON SO LONG IN KIEV THAT THE TOOLS RUSTED AS IN THE REST OF UKRAINE DONETSK'S INDUSTRY IS STILL RUNNING AS IT HAS FOR DECADES WITH SCANT CONNECTION TO PROFIT WHAT KEEPS UKRAINE RUNNING AT ALL IS PROBABLY THE UNDERGROUND ECONOMY WHICH BY MR PYNZENYK'S ESTIMATE IS WHERE ABOUT ONETHIRD OF THE COUNTRY'S CAPITAL FINDS REFUGE DESPITE THE ECONOMIC MINISTRY'S DOUR VIEW OF LUXURY IMPORTS SOME KIOSKS MANAGE TO STOCK SUCH GOODS AS AMERICAN BUBBLE BATH AND ITALIAN STOCKINGS AND DESPITE KIEV'S ROLE AS ALLOCATOR OF MOST FUEL PEOPLE FIND WAYS TO GET GASOLINE IN EASTERN UKRAINE THEY DRIVE TO RUSSIA BARTER OR PAY ILLICIT CASH TO TANK UP AND THEN BRIBE BORDER GUARDS TO LET THEM SMUGGLE THE STUFF INTO UKRAINE BUT ARRANGEMENTS LIKE THESE DON'T BREED A HEALTHY SAFE SOCIETY ON A BUSY KIEV SIDEWALK FOR EXAMPLE A 28YEAROLD MAN IN A STYLISH LEATHER JACKET SAYS THAT SINCE INDEPENDENCE HE IS PROSPERING IN THE BLACKMARKETCURRENCY TRADE HE SAYS THAT DEALING IN DOLLARS RUBLES AND MARKS EARNS HIM BETWEEN 20 AND 100 A DAY VAST WEALTH BY UKRAINIAN STANDARDS EVEN AFTER PAYING A CUT TO LOCAL MOBSTERS SOME ANALYSTS HERE STRESS THAT UKRAINE SUFFERED A HANDICAP COMMON TO ALL FORMER SOVIET STATES EXCEPT RUSSIA UNDER SOVIET PLANNING THE LINES OF AUTHORITY DID NOT RUN THROUGH THE CAPITAL OF KIEV BUT WENT DIRECTLY TO MOSCOW SO UKRAINIAN OFFICIALS HAD TO LEARN HOW TO MANAGE A COUNTRY JUST BECAUSE UKRAINE IS A NUCLEAR POWER DOESN'T MEAN IT KNOWS HOW TO RUN A FINANCE MINISTRY SAYS A CANADIAN ADVISER TO THE CABINET BOHDAN KRAWCHENKO THE ALARMING PICTURE IN UKRAINE EVEN HAS MR CHORNOVIL THE NATIONALIST LEADER ENVYING RUSSIA'S MR YELTSIN AND HIS RECENTLY REHABILITATED REFORM CZAR FIRST DEPUTY PRIME MINISTER YEGOR GAIDAR SITTING IN ONE OF THE ENERGYSTARVED UKRAINE'S DIM OFFICES MR CHORNOVIL SAYS I THINK WE WILL MAINTAIN OUR INDEPENDENCE BUT IT WILL BE VERY DIFFICULT EVEN MORE DIFFICULT THAN IT IS NOW HE SPECIFIES WHERE UKRAINE WENT WRONG WE DIDN'T HAVE ANY YELTSIN ANY GAIDAR 9311110124 931111 BRADLEY PHARMACEUTICALS FAIRFIELD NJ BRADLEY PHARMACEUTICALS INC SAID IT HAS AGREED TO ACQUIRE THE DECONAMINE PRESCRIPTION COLD/DECONGESTANT PRODUCT LINE FROM BERLEX LABORATORIES INC AN AFFILIATE OF SCHERING AG GERMANY FOR 165 MILLION THE PRODUCT LINE HAD ESTIMATED 1993 US SALES OF APPROXIMATELY 104 MILLION ACCORDING TO BRADLEY THE CLOSING DATE OF THE AGREEMENT IS EXPECTED TO BE NOV 19 9311110123 931111 WHO'S NEWS PROVIDENT LIFE & ACCIDENT INSURANCE CO PROVIDENT LIFE & ACCIDENT INSURANCE CO CHATTANOOGA TENN J HAROLD CHANDLER 44 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS INSURANCE COMPANY HE SUCCEEDS WINSTON W WALKER 50 WHO ANNOUNCED IN MAY THAT HE WOULD LEAVE THE COMPANY IN OCTOBER MR CHANDLER'S PREVIOUS POSITION WAS WITH NATIONSBANK CORP WHERE HE WAS PRESIDENT OF THE BANK'S MIDATLANTIC REGION 9311110122 931111 WHO'S NEWS NATIONAL STEEL CORP NATIONAL STEEL CORP MISHAWAKA IND ROBERT E WESTERGREN 56 YEARS OLD WAS NAMED VICE PRESIDENT AND GENERAL MANAGER OF THIS COMPANY'S MIDWEST DIVISION A FINISHING FACILITY LOCATED IN PORTAGE IND WILLIAM E GOEBEL 54 GENERAL MANAGER OF CONSUMER AND CAPITAL GOODS WILL SUCCEED MR WESTERGREN AS VICE PRESIDENT OF MARKETING AND SALES 9311110121 931111 WHO'S NEWS STEELCASE INC STEELCASE INC GRAND RAPIDS MICH JOHN KLEIN 54 YEARS OLD WAS NAMED PRESIDENT OF STEELCASE FINANCIAL SERVICES INC THE FINANCING SUBSIDIARY OF THIS OFFICE FURNITURE MANUFACTURER THE COMPANY SAID THAT BEGINNING IN MARCH OF NEXT YEAR IT WILL EXPAND THE RANGE OF FINANCING OPTIONS IT CURRENTLY OFFERS TO ITS CUSTOMERS AND DEALERS 9311110120 931111 WHO'S NEWS SAFEGUARD SCIENTIFICS INC SAFEGUARD SCIENTIFICS INC WAYNE PA JEAN C TEMPEL RESIGNED FROM THE POSTS OF PRESIDENT AND CHIEF OPERATING OFFICER TO OPEN A BOSTON OFFICE FOR THE COMPUTERPRODUCTS AND SERVICES COMPANY WARREN V MUSSER CHAIRMAN AND CHIEF EXECUTIVE ASSUMES MS TEMPEL'S FORMER ROLES A SPOKESMAN SAID MS TEMPEL DECIDED TO GO TO BOSTON FOR PERSONAL REASONS 9311110119 931111 WHO'S NEWS XLI CORP XLI CORP WOBURN MASS SAMUEL B COCO 65 YEARS OLD WAS NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS LASERPRINTER CONCERN HE SUCCEEDS VINCENT J SPOTO 47 WHO RESIGNED FROM THOSE POSTS TO PURSUE OTHER INTERESTS MR SPOTO WILL BE A CONSULTANT TO THE COMPANY MR COCO PREVIOUSLY PRESIDENT OF CABOT CORP WAS NAMED AN XLI DIRECTOR IN MAY 9311110118 931111 WHO'S NEWS M/A COM INC M/A COM INC WAKEFIELD MASS THIS MICROWAVE AND DIGITAL COMMUNICATIONS CONCERN NAMED CURRENT PRESIDENT ALLAN L RAYFIELD CHIEF EXECUTIVE OFFICER THE APPOINTMENT OF MR RAYFIELD WHO WILL VACATE HIS JOB AS CHIEF OPERATING OFFICER FOLLOWS A PREVIOUSLY ANNOUNCED SUCCESSION PLAN MR RAYFIELD 58 YEARS OLD SUCCEEDS THOMAS A VANDERSLICE MR VANDERSLICE 62 WILL REMAIN CHAIRMAN 9311110117 931111 MOST FUND HOLDERS HAVE WRONG IDEAS ON BANK INSURANCE BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS MANY AS TWOTHIRDS OF INVESTORS WHO BOUGHT SHARES OF MONEYMARKET FUNDS AT THEIR BANKS WRONGLY BELIEVE THOSE FUNDS ARE FEDERALLY INSURED ACCORDING TO A SECURITIES AND EXCHANGE COMMISSION SURVEY DESPITE THE LIMITED SCOPE OF THE SURVEY SEC CHAIRMAN ARTHUR LEVITT SAID IT ILLUSTRATES THE NEED FOR MORE STRIDENT EFFORTS BY BANKS AND REGULATORS TO ENSURE THAT INVESTORS ARE AWARE THAT MUTUAL FUNDS AREN'T COVERED BY FEDERAL DEPOSIT INSURANCE BANKMANAGED FUNDS ARE NOW ONE OF THE FASTESTGROWING SEGMENTS OF THE MUTUAL FUND INDUSTRY MR LEVITT SAID IN TESTIMONY BEFORE THE SECURITIES SUBCOMMITTEE OF THE SENATE BANKING COMMITTEE HE SAID BANKS CURRENTLY OFFER 1156 DIFFERENT FUNDS WITH 1947 BILLION IN ASSETS UP FROM 213 FUNDS AND 354 BILLION IN ASSETS FIVE YEARS AGO IN THAT CONTEXT HE SAID THE LACK OF DISCLOSURE ABOUT THE RISKINESS OF MUTUAL FUND INVESTMENTS IS A CLEAR AND PRESENT DANGER MR LEVITT CALLED FOR AT LEAST TWO REMEDIAL ACTIONS A PHYSICAL SEPARATION OF BANK FACILITIES THAT ACCEPT DEPOSITS FROM THE FACILITIES THAT SELL MUTUAL FUNDS AND A BAN AGAINST BANKS SELLING FUNDS WITH NAMES THAT ARE SIMILAR TO THEIR OWN THE LATTER WOULD HELP INVESTORS REALIZE THAT BANKS DON'T FINANCIALLY BACK THE SECURITIES THEY SELL MR LEVITT SAID THOUGH REQUIRING SUCH STEPS BY BANKS IS OUTSIDE THE SEC'S PURVIEW MR LEVITT SAID HE IS WORKING CLOSELY WITH COMPTROLLER OF THE CURRENCY EUGENE LUDWIG TO DEVELOP MORE SAFEGUARDS FOR INVESTORS WHO BUY SECURITIES AT BANKS THE TWO REGULATORS ARE ALREADY PLANNING A MORE COMPREHENSIVE SURVEY OF MUTUAL FUND INVESTORS TO DETERMINE MORE ACCURATELY THEIR CONFUSION ABOUT INSURANCE MR LEVITT SAID THE SEC'S PRELIMINARY SURVEY COVERED 1000 HOUSEHOLDS OF WHOM 47 OWNED SHARES OF MUTUAL FUNDS OF THE RESPONDENTS WHO PURCHASED MUTUAL FUND SHARES AT A BANK 66 SAID MONEYMARKET MUTUAL FUNDS SOLD BY BANKS ARE FEDERALLY INSURED OF THE SAME GROUP OF RESPONDENTS 49 SAID MUTUAL FUNDS PURCHASED FROM A STOCKBROKER ARE FEDERALLY INSURED MARK WILLIAMSON WHO HEADS THE MUTUAL FUNDS GROUP AT NATIONSBANK CORP SAID THE SURVEY RESULTS ARE HIGHLY INCONSISTENT WITH MY EXPERIENCE IN THE INDUSTRY HE ADDED THAT HE BELIEVES THAT INVESTORS IN NATIONSBANK'S FAMILY OF MUTUAL FUNDS CALLED NATIONS FUND ARE FULLY AWARE THAT SHARES AREN'T FEDERALLY INSURED 9311110116 931111 PARAMOUNT WINS AUCTION FOR MACMILLAN RAISING THE STAKES FOR VIACOM AND QVC BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PARAMOUNT COMMUNICATIONS INC TURNED IN THE WINNING BID IN AN AUCTION FOR BOOK PUBLISHER MACMILLAN INC OFFERING 5528 MILLION AND BEATING THREE OTHER CONTENDERS SHARES OF PARAMOUNT WHICH IS THE OBJECT OF A FIERCE 10 BILLION TAKEOVER BATTLE BETWEEN VIACOM INC AND QVC NETWORK INC DROPPED 50 CENTS TO 8050 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ANALYSTS CITED THE APPROXIMATELY 50 DROP IN PARAMOUNT'S CASH COFFERS THAT WILL RESULT FROM THE DEAL THOUGH THE PURCHASE MEANS THERE WILL BE LESS CASH AVAILABLE FOR EITHER VIACOM OR QVC TO REPAY ACQUISITIONRELATED DEBT WALL STREET GENERALLY REGARDS THE DEAL AS A SAVVY STRATEGIC FIT WITH PARAMOUNT'S PUBLISHING OPERATIONS AND VIEWS THE PRICE TAG AS TOLERABLE VIACOM WHICH HAS A MERGER AGREEMENT WITH PARAMOUNT APPROVED PARAMOUNT'S BID AND EXECUTIVES THERE SAY THEY EXPECT SIGNIFICANT COST SAVINGS AND ATTRACTIVE CASH FLOW BY MERGING MACMILLAN'S EDUCATIONAL AND CONSUMER PUBLISHING BUSINESSES WITH PARAMOUNT OPERATIONS INCLUDING SIMON & SCHUSTER AND ITS PRENTICEHALL COLLEGE DIVISION PARAMOUNT IS ALREADY THE NATION'S NO 1 COLLEGE PUBLISHER BUT MACMILLAN STRENGTHENS THAT BUSINESS AND GIVES PARAMOUNT A MUCH BIGGER PRESENCE IN THE FASTGROWING CHILDREN'S CONSUMER BOOKS MARKET PARAMOUNT'S OPERATIONS ALSO INCLUDE PARAMOUNT PICTURES MADISON SQUARE GARDEN TELEVISION STATIONS AND THEME PARKS ALL PARTICIPANTS IN THE AUCTION WHICH WAS CONDUCTED FOR US BANKRUPTCY COURT BY JP MORGAN & CO WERE PLEDGED TO SECRECY ABOUT THE BIDS PEOPLE FAMILIAR WITH THE BIDDING WHICH PARAMOUNT HAD BEEN EXPECTED TO WIN SAID THE GAP BETWEEN PARAMOUNT'S OFFER AND THE NEXT ONE WASN'T MORE THAN 5 THE OTHER BIDDERS INCLUDE BOSTONBASED HARCOURT GENERAL INC BRITISH PUBLISHER PEARSON PLC AND KIII COMMUNICATIONS CORP QVC CHAIRMAN AND CHIEF EXECUTIVE BARRY DILLER COULDN'T BE REACHED FOR COMMENT BUT HE IS SAID BY PEOPLE CLOSE TO HIM TO VIEW THE MACMILLAN ACQUISITION AS A SOUND PURCHASE ANALYST KEVIN GRUNEICH OF FIRST BOSTON CORP CALLED THE PRICE QUITE REASONABLE AT ABOUT TWICE REVENUES BECAUSE THESE ARE ASSETS THAT CAN OBVIOUSLY BE INTEGRATED INTO PARAMOUNT PUBLISHING FOR LARGE COST SAVINGS MR GRUNEICH ADDED THIS SEEMS LIKE A GOOD NUMBER AND I BELIEVE THIS WILL TURN OUT TO BE A GOOD DEAL LISBETH BARRON A MEDIA ANALYST WITH SG WARBURG SAID THIS DOES MAKE THE ACQUISITION OF PARAMOUNT MORE EXPENSIVE BUT THE BANKS RECOGNIZE THAT MACMILLAN IS A VIABLE ASSET AND WHATEVER THE BORROWING CAPACITY WOULD HAVE BEEN THIS SHOULD ADD TO IT AS LONG AS THIS IS A VIABLE ASSET AND IT FITS WELL WITH THE OPERATIONS OF PARAMOUNT THIS DEAL SHOULDN'T BE A DETERRENT TO ANYONE LOOKING TO BID FOR THE COMPANY MACMILLAN ONE OF THE LAST REMAINING ASSETS OF THE PUBLISHING EMPIRE OF THE LATE ROBERT MAXWELL WILL ENTER INTO A PREPACKAGED BANKRUPTCY REORGANIZATION THAT MUST BE COMPLETED BEFORE PARAMOUNT ACQUIRES IT UNDER THE PROCESS THE BOOK PUBLISHER WILL SORT OUT AND HANDLE ANY REMAINING LIABILITY ISSUES FROM ITS PREVIOUS OWNERSHIP FOLLOWING THAT PROCESS AND REGULATORY REVIEWS THE ACQUISITION BY PARAMOUNT WILL BE COMPLETED PROBABLY IN THE FIRST QUARTER OF 1994 PARAMOUNT EXECUTIVES DECLINED TO COMMENT ON THE PURCHASE OR THEIR STRATEGY FOR EXPLOITING MACMILLAN'S OPERATIONS BUT WILBUR ROSS SENIOR MANAGING DIRECTOR OF ROTHSCHILD INC WHO HANDLED THE DEAL FOR PARAMOUNT SAID THAT PARAMOUNT BELIEVES THE FINANCIAL BENEFITS FROM COMBINING OPERATIONS ARE ALONE WORTH MORE THAN THE TOTAL EARNINGS FROM MACMILLAN WHICH ARE ABOUT 25 MILLION A YEAR BEFORE TAX HE SAID THAT BECAUSE THE PROCESS TOOK MORE THAN A YEAR PARAMOUNT HAD TIME TO DEVELOP UNUSUALLY DETAILED PLANS FOR HOW TO RUN MACMILLAN TITLE BY TITLE AND EMPLOYEE BY EMPLOYEE IN A NEWS RELEASE MARTIN S DAVIS PARAMOUNT'S CHAIRMAN CALLED THE ACQUISITION A SIGNIFICANT STEP IN FURTHERING OUR STRATEGIC OBJECTIVE OF CREATING PROPRIETARY INTELLECTUAL PROPERTIES THAT CAN BE DISTRIBUTED THROUGH A WIDE VARIETY OF MEDIA FROM PRINTED PAGES TO COMPUTER AND VIDEO SCREENS WITH THE PURCHASE OF MACMILLAN PARAMOUNT ACQUIRES EVERTHING FROM HARDCOVER RIGHTS TO GONE WITH THE WIND TO BARBARA BUSH'S MEMOIRS A BOOK NOW UNDER CONTRACT TO MACMILLAN WHILE PARAMOUNT'S SIMON & SCHUSTER AND POCKETBOOKS DIVISIONS ARE KNOWN MOSTLY FOR BIG CURRENT BESTSELLERS LIKE HOWARD STERN'S PRIVATE PARTS AND THE THRILLERS OF MARY HIGGINS CLARK MACMILLAN HAS A RICH VAULT OF CLASSICS BY THE LIKES OF EDITH WHARTON AND ERNEST HEMINGWAY IT ISN'T KNOWN HOW MANY OF MACMILLAN'S APPROXIMATELY 1100 EMPLOYEES WILL BE CUT BY PARAMOUNT BUT THERE ARE EXPECTED TO BE MAJOR BACKOFFICE SAVINGS IN AREAS SUCH AS SALES PROMOTION AND PRODUCTION PARAMOUNT HAS OPERATIONS MOST OF THEM LARGER IN VIRTUALLY EVERY BOOK MARKET IN WHICH MACMILLAN PARTICIPATES INCLUDING REFERENCE BOOKS AND NONFICTION FOR THE PROFESSIONAL MARKET ONLY IN CHILDREN'S BOOKS IS PARAMOUNT SMALLER WITH ANNUAL SALES OF ABOUT 25 MILLION COMPARED WITH TWICE THAT FOR MACMILLAN PRIVATELY PARAMOUNT EXECUTIVES AND EDITORS ASSURED MACMILLAN EXECUTIVES THAT PARAMOUNT RESPECTS THE OPERATIONS BEING ACQUIRED AND WILL KEEP AS MANY EMPLOYEES AS IT CAN MACMILLAN INSIDERS WHILE HAPPY TO FINALLY KNOW WHO WILL ACQUIRE THE COMPANY EXPRESSED A SENSE OF SADNESS THE LONG TWISTINGINTHEWIND IS OVER AND PEOPLE CAN FINALLY EVALUATE THEIR SITUATIONS AND MAKE PLANS SAID ONE LONGTIME INSIDER WE FEEL GOOD THAT WHILE OTHER PEOPLE COLLECTED 60 MILLION IN FEES DISPOSING OF US WE CARRIED ON BUT WE ARE SAD AT WHAT WILL LIKELY BE THE END OF A VERY OLD NAME IN PUBLISHING MACMILLAN WAS FOUNDED IN 1896 9311110115 931111 TEACHERS' FUND BID TO CUT STAFF PAY IS EXPECTED TO FAIL BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL A HOLDER PROPOSAL PRODDING THE GIANT TIAACREF PENSION FUND TO SLASH ITS OWN ADMINISTRATIVE SALARIES WON'T PASS BUT IS EXPECTED TO WIN A RESPECTABLE ONETHIRD OF THE VOTE THE TALLY WON'T BE FINAL UNTIL TOMORROW AT THE ORGANIZATION'S ANNUAL MEETING IN SAN FRANCISCO BUT OFFICIALS AT THE HUGE PENSION PLAN FOR TEACHERS ACKNOWLEDGED YESTERDAY THAT THE VOTE IS RUNNING 2TO1 AGAINST A RETIRED TEACHER'S PROPOSAL URGING THE BOARD TO REDUCE OFFICERS' AND EMPLOYEES' SALARIES WHILE THE PROPOSAL WON'T WIN THE CONSIDERABLE SUPPORT FOR IT HAS SENT SHOCK WAVES THROUGH THE TEACHERS INSURANCE AND ANNUITY ASSOCIATIONCOLLEGE RETIREMENT EQUITIES FUND LIKE MANY PENSION FUNDS TIAACREF IS MORE ACCUSTOMED TO COMPLAINING ABOUT OTHER ORGANIZATIONS' PRACTICES THAN BEING BERATED ABOUT ITS OWN JUST LAST MONTH THE FUND ANNOUNCED A NEW CORPORATE GOVERNANCE POLICY WE'RE VERY SENSITIVE TO THE FACT THAT OUR CUSTOMERS LOOK AT THESE COMPENSATION NUMBERS AND FIND THEM EXTRAORDINARILY HIGH EVEN THOUGH THE CORPORATE COMMUNITY MIGHT LOOK AT THEM AND FIND THEM LOW SAID JOHN BIGGS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TIAACREF SINCE FEBRUARY I'M NOT AT ALL SURPRISED THAT THE VOTE IS RUNNING AS STRONGLY AS IT IS IN FAVOR OF THE PROPOSAL GIVEN THE RECENT WIDESPREAD CRITICISM OF MANAGEMENT COMPENSATION IN GENERAL HE SAID SPARKING THE PROPOSAL WAS THE FUND'S DECISION IN 1991 TO PAY 106 MILLION TO CLIFTON R WHARTON JR THE THENCHAIRMAN AND CEO OF TIAACREF HE LEFT THE FUND TO BECOME PRESIDENT CLINTON'S DEPUTY SECRETARY OF STATE HE RESIGNED FROM THAT POST OVER THE WEEKEND THIS YEAR MR BIGGS WILL RECEIVE A BASE SALARY OF 605000 AND HE'S ELIGIBLE FOR A BONUS WHICH IS EXPECTED TO TOP 300000 THE PROPOSAL'S SPONSOR WERNER COHN 67 YEARS OLD IS A RETIRED COLLEGE SOCIOLOGY PROFESSOR WHOSE WIFE RITA IS ALSO A LIFELONG TEACHER HE SAID HE THINKS TIAACREF EXECUTIVE COMPENSATION IS OUTRAGEOUS ESPECIALLY GIVEN THAT TIAACREF'S 52 BILLION STOCK PORTFOLIO LAST YEAR RETURNED JUST 63 AFTER EXPENSES THAT WAS BELOW THE 76 TOTAL RETURN OF THE STANDARD & POOR'S 500 OVER FIVE YEARS THE PENSION FUND'S STOCK PORTFOLIO REAPED 145 ANNUALLY AGAINST THE S&P'S 159 MR COHN SAID THAT MANY OTHER PUBLIC PENSION FUNDS PAY SALARIES OF ABOUT 100000 TO TOP MANAGERS AND DELIVER BETTER RETURNS OFFICIALS AT THE FUND THE WORLD'S LARGEST CONTEND THAT THEY MUST COMPETE FOR TOPFLIGHT PEOPLE IN THE INVESTMENT BANKING AND INSURANCE WORLD BUT MR COHN SAYS IT ISN'T SO HE NOTED THAT MR WHARTON JOINED TIAACREF AFTER SERVING AS PRESIDENT OF MICHIGAN STATE UNIVERSITY AND HE TOOK THE WASHINGTON JOB EVEN THOUGH IT MEANT A BIG PAY CUT TO 133600 ANNUALLY 9311110114 931111 LIGGETT RAISES CIGARETTE PRICES NEW YORK LIGGETT GROUP THE NATION'S SMALLEST MAJOR TOBACCO COMPANY MATCHED RJR NABISCO HOLDINGS CORP'S PRICE INCREASES LIGGETT THE TOBACCO UNIT OF BROOKE GROUP LTD SAID IT WOULD RAISE ITS WHOLESALE CIGARETTE PRICES BY FOUR CENTS A PACK EFFECTIVE NOV 12 RJR RAISED ITS PRICES BY THE SAME AMOUNT ON TUESDAY OTHER US CIGARETTE COMPANIES HAVEN'T YET RESPONDED TO RJR'S PRICE INCREASE BROOKE GROUP'S STOCK SURGED ON THE NEWS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BROOKE SHARES CLOSED AT 2 UP 375 CENTS OR 23 9311110113 931111 CADMUS BUYS WAVERLY PRESS RICHMOND VA CADMUS COMMUNICATIONS CORP SAID IT COMPLETED THE ACQUISITION OF WAVERLY PRESS THE PRINTING DIVISION OF WAVERLY INC THE COMPANY PAID 145 MILLION OF THE 20 MILLION ACQUISITION PRICE AT THE DEAL'S CLOSING ON MONDAY CADMUS PLACED AN ADDITIONAL 1 MILLION IN ESCROW IT WILL PAY ANOTHER 45 MILLION UPON CONFIRMATION OF CERTAIN REPRESENTATIONS MADE BY WAVERLY ABOUT THE COMPANY'S FINANCES AND OPERATIONS PAYMENTS WILL LARGELY BE COMPLETED WITHIN A YEAR A CADMUS SPOKESMAN SAID 9311110112 931111 PITNEY BOWES'S SHIPPING SYSTEM STAMFORD CONN PITNEY BOWES INC SAID IT INTRODUCED A SHIPPING SYSTEM DESIGNED MAINLY FOR MEDIUM TO HIGHVOLUME SHIPPERS OF SMALL PARCELS THE STAR 700 CARRIER MANAGEMENT SYSTEM AUTOMATES VARIOUS ASPECTS OF THE SHIPPING PROCESS INCLUDING LABELING AFFIXING ADDRESSES AND SELECTING A SHIPPING CARRIER BASED ON CONSUMER PREFERENCE THE PCBASED SYSTEM CAN COMMUNICATE WITH THE USER'S CENTRAL COMPUTER AND ACCESS INFORMATION ON ORDERS ALTHOUGH THE STAR 700 SYSTEM COSTS LESS THAN 16000 MOST CUSTOMERS PREFER TO LEASE THE MACHINE FOR ABOUT 350 A MONTH THE COMPANY SAID 9311110111 931111 WHO'S NEWS BARNETT BANKS INC BARNETT BANKS INC JACKSONVILLE FLA ANN MILLIGAN 34 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF MARKETING FOR BARNETT CARD SERVICES CORP SHE WILL BE RESPONSIBLE FOR MARKETING BARNETT'S CREDIT CARDS MS MILLIGAN'S PREVIOUS POST WAS WITH FIRSTAR BANK IN MILWAUKEE WHERE SHE WAS VICE PRESIDENT AND GROUP MANAGER OF RETAILCREDIT SERVICES SHE SUCCEEDS ROBERT E STOCK WHO LEFT IN JULY TO BECOME NATIONSBANK CORP'S DIRECTOR OF MARKETING FOR CARD SERVICES 9311110110 931111 MARKETING & MEDIA MOLSON BREWERIES PUTS CURBS ON ADVERTISING OF HIGHALCOHOL BEER TORONTO MOLSON BREWERIES SAID IT WOULDN'T ADVERTISE ITS NEW HIGHALCOHOL BEER ON EARLYEVENING TELEVISION AFTER RIVAL JOHN LABATT LTD SPARKED A CONTROVERSY WITH ITS OWN HIGHALCOHOL BEER MOLSON SAID IT WANTS TO LAUNCH ITS MOLSON XXX IN THE MOST RESPONSIBLE WAY WE CAN IT SAID IT WON'T BROADCAST ADS OF ITS MOREPOTENT SUDS BEFORE 930 AT NIGHT NOR WILL THE ADS FEATURE CELEBRITIES OR LIFESTYLES THAT APPEAL TO YOUNG ADULTS MAINLY IN THE 19TO24 AGE GROUP THE LEGAL DRINKING AGE IN MOST CANADIAN PROVINCES IS 19 THE SELFIMPOSED RESTRICTIONS WILL FOR INSTANCE KEEP MOLSON FROM PROMOTING ITS NEW BRAND DURING THE FIRST HOURS OF HOCKEYGAME BROADCASTS THAT THE BREWER SPONSORS A SPOKESMAN SAID MOLSON IS OWNED BY MOLSON COS OF TORONTO FOSTER'S BREWING GROUP LTD OF AUSTRALIA AND MILLER BREWING CO A UNIT OF PHILIP MORRIS COS RIVAL BREWER LABATT DREW THE IRE OF VARIOUS CONSUMERSAFETY ORGANIZATIONS FOLLOWING THE SEPTEMBER LAUNCH OF MAXIMUM ICE WHICH CONTAINS 71 ALCOHOL COMPARED WITH 5 FOUND IN MOST BEERS MOLSON ALSO ASSAILED LABATT AT THE TIME FOR ITS SOCIAL IRRESPONSIBILITY SINCE THEN MOLSON DECIDED IT COULDN'T IGNORE A POPULAR NEW BEER CATEGORY THE SPOKESMAN SAID ONTARIO REGULATORS TOOK THE BEER COMPANIES TO TASK OVER THE HIGHALCOHOL DISPUTE BY SUMMONING COMPANY REPRESENTATIVES TO A MEETING THIS WEEK TO URGE MORE SELFREGULATION BY THE INDUSTRY A LABATT SPOKESMAN SAID THE COMPANY WILL ABIDE BY MARKETING RESTRICTIONS TO BE DEVELOPED BY THE BREWERS ASSOCIATION OF CANADA AN INDUSTRY BODY THE SPOKESMAN SCOFFED AT MOLSON'S OWN MARKETING CODE SAYING THAT BEER MARKETING ALREADY IS TIGHTLY REGULATED IN CANADA LABATT FOR INSTANCE WASN'T ABLE TO ATTACH ITS NAME TO A RECENT MADONNA CONCERT THAT THE COMPANY SPONSORED BECAUSE OF THE ROCK STAR'S YOUTHFUL FOLLOWING 9311110108 931111 EXXON UNIT PLEADS GUILTY TO FALSIFYING DATA FOR US ARMY NEWARK EXXON CHEMICAL CO A UNIT OF EXXON CORP AGREED TO PAY THE FEDERAL GOVERNMENT MORE THAN 38 MILLION IN FINES AND OTHER COSTS FOR FALSIFYING TEST REPORTS RELIED ON BY THE ARMY TO BUY OIL AND ADDITIVES US ATTORNEY MICHAEL CHERTOFF SAID EXXON CHEMICAL PLEADED GUILTY IN FEDERAL DISTRICT COURT HERE TO MISDEMEANOR CHARGES THAT EMPLOYEES AT ITS FORMER LINDEN NJ ENGINETESTING LABORATORY FALSIFIED TEST DATA IN THE LATE 1980S THE DATA SUBMITTED TO AN AGENCY THAT APPROVES FUEL PURCHASES FOR THE ARMY WERE USED TO BUY 300000 WORTH OF OIL AND ADDITIVES AMONG OTHER VIOLATIONS THE EMPLOYEES RECORDED FALSE TEMPERATURE RPM AND OTHER ENGINE DATA AND FALSELY MINIMIZED THE WEAR AND TEAR ON TESTENGINE COMPONENTS MR CHERTOFF SAID THE EXXON UNIT AGREED TO PAY A MAXIMUM 3 MILLION FINE FOR THE MISDEMEANOR CHARGES 500000 TO COVER COSTS OF THE INVESTIGATION AND 300000 IN FULL RESTITUTION FOR THE PURCHASE OF THE OILS AND ADDITIVES AND OTHER MINOR CHARGES EXXON CHEMICAL PRESIDENT RAY B NESBITT SAID MANAGEMENT WAS NEITHER AWARE OF NOR CONDONED THE REPORTING VIOLATIONS AND DISCIPLINED SEVERAL EMPLOYEES INVOLVED IN THE FALSE RESULTS THE COMPANY CLOSED THE NEW JERSEY LAB IN 1990 AFTER IT LEARNED OF THE GOVERNMENT INVESTIGATION THE COMPANY SAID NONE OF THE PRODUCTS IT CURRENTLY MARKETS RELY ON TEST DATA FROM THE LAB ALL OF ITS ENGINE TESTING ON MOTOR OILS USED FOR US PASSENGER CARS ARE CONDUCTED AT INDEPENDENT LABS EXXON CHEMICAL ADDED 9311110107 931111 TWO DIRECTORS AT VALLEY FASHIONS WANT TO OUST CHAIRMAN SEC FILINGS SHOW TWO DIRECTORS OF VALLEY FASHIONS CORP HAVE TOLD THE COMPANY'S BOARD THEY PLAN TO VOTE TO OUST CHAIRMAN HOLCOMBE T GREEN JR AT THE 1994 ANNUAL MEETING ACCORDING TO FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION THE DIRECTORS TALTON R EMBRY AND GEORGE MCFADDEN HAVE OPPOSED A 12 BILLION REFINANCING PROGRAM NOW UNDER WAY AT VALLEY FASHIONS WHICH OWNS 95 OF WESTPOINT PEPPERELL INC A TEXTILE CONCERN IN WEST POINT GA THE PLAN APPROVED IN SEPTEMBER INVOLVES THE PURCHASE OF THE 15 MILLION SHARES OF WESTPOINT THAT VALLEY FASHIONS DOESN'T OWN THE PACKAGE ALSO CALLS FOR ISSUING SUBORDINATED DEBT SECURITIES AND BORROWING UNDER A NEW CREDIT FACILITY MESSRS EMBRY AND MCFADDEN TOGETHER CONTROL ABOUT 222 OF VALLEY FASHIONS' 34 MILLION SHARES OUTSTANDING THE FILINGS MADE IN CONNECTION WITH THE REFINANCING STATE THAT THE TWO DIRECTORS FAVOR A LESSCOSTLY SHORTTERM REFINANCING PLAN IN ADDITION MR EMBRY BELIEVES THE REFINANCING SHOULD BE POSTPONED IN LIGHT OF THE POSSIBLE SALE OF NEW STREET CAPITAL CORP HOLDER OF 225 OF VALLEY FASHIONS SHARES ACCORDING TO THE FILINGS NEITHER MR EMBRY NOR MR MCFADDEN COULD BE REACHED FOR COMMENT MR GREEN WHO HOLDS ABOUT 118 OF VALLEY FASHIONS' STOCK ALSO WAS UNAVAILABLE VALLEY FASHIONS NOTED THAT SEVEN OF THE BOARD'S NINE MEMBERS VOTED FOR THE REFINANCING PLAN MR GREEN THE COMPANY SAID CONTINUES TO ENJOY THE SUPPORT OF THE SEVEN DIRECTORS INCLUDING REPRESENTATIVES OF NEW STREET CAPITAL MR EMBRY IS CHIEF EXECUTIVE OFFICER OF JUNKBOND INVESTMENT ADVISER MAGTEN ASSET MANAGEMENT CORP MR MCFADDEN IS A GENERAL PARTNER OF MCFADDEN BROTHERS A NEW YORK MERCHANT BANKING FIRM VALLEY FASHIONS BASED IN NEW YORK EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS IN SEPTEMBER 1992 IT IS THE SUCCESSOR TO THE COMPANY CHICAGO INVESTOR WILLIAM FARLEY CREATED TO ACQUIRE MOST OF WESTPOINT IN A 1989 BUYOUT A SIMPLIFIED CORPORATE STRUCTURE AT WESTPOINT VALLEY FASHIONS' ONLY OPERATING UNIT WOULD MAKE IT EASIER FOR WALL STREET ANALYSTS TO FOLLOW AND PROMOTE THE COMPANY ACCORDING TO INDUSTRY OBSERVERS 9311110106 931111 CHANGING WORK HABITS FUEL POPULARITY OF NOTEBOOKS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL MOVIE PRODUCER DOUG PODD SHOPS AT A HIGHTECH SUPERSTORE IN SUBURBAN DALLAS IN HOPES OF PUTTING HIS DESKTOP COMPUTER OUT OF BUSINESS MR PODD HOPPING ON THE HOTTEST TREND IN COMPUTING TODAY IS LOOKING TO REPLACE HIS MACINTOSH COMPUTER WITH A NOTEBOOK MACHINE THAT WILL ALLOW HIM TO REWRITE SCRIPTS AND CALCULATE BUDGETS WHILE ON LOCATION I NEED TO BE MORE MOBILE MORE FLEXIBLE HE SAYS AS FOR HIS OLD PC STANDBY MR PODD SNEERS WHO USES A DESKTOP ANYMORE FEWER PEOPLE IT TURNS OUT THAN YOU MIGHT THINK PORTABLE COMPUTERS INCLUDING NOTEBOOKS WHICH ACTUALLY ARE ABOUT THE SIZE OF A TELEPHONE BOOK LIGHTWEIGHT SUBNOTEBOOKS AND HANDHELD MINICOMPUTERS HAVE ZOOMED OUT OF OBSCURITY IN RECENT MONTHS TO BECOME THE FASTESTGROWING PRODUCT NICHE IN PCS AT COMPUSA INC WHICH OWNS THE STORE WHERE MR PODD IS SHOPPING PORTABLE COMPUTERS ACCOUNT FOR 30 OF SALES TRIPLE LAST YEAR'S LEVELS WITHIN TWO YEARS SAYS COMPUSA CHIEF EXECUTIVE NATHAN MORTON MORE THAN HALF OF ALL THE COMPUTERS SOLD BY THE CHAIN WILL BE NOTEBOOKS AND OTHER PORTABLE PCS INDUSTRYWIDE ANALYSTS SAY THE MARKET FOR PORTABLE PCS IS GROWING NEARLY FOUR TIMES AS FAST AS THE DESKTOP PC BUSINESS THIS YEAR SAYS MARKET WATCHER BIS STRATEGIC DECISIONS INC ABOUT 28 MILLION PORTABLE UNITS WILL BE SHIPPED IN THE US UP 23 FROM LAST YEAR BIS SAYS THE DESKTOP MARKET WHILE MUCH BIGGER IN TERMS OF UNITS WILL GROW BY ONLY 57 THE BOOM IN PORTABLE PCS HAS AS MUCH TO DO WITH TRENDS IN CORPORATE AMERICA AS IT DOES WITH MIPS AND MEGAHERTZ EARLIER THIS YEAR FOR EXAMPLE WILSONS THE LEATHER EXPERTS A MINNEAPOLIS LEATHER RETAILER DISTRIBUTED NEW COMPAQ AND TOSHIBA NOTEBOOK COMPUTERS TO ITS DISTRICT SALES MANAGERS WHO ONCE WORKED ON DESKTOP MACHINES OUT OF BACK OFFICES NOW THOSE OFFICES HAVE BEEN ELIMINATED AND THE MANAGERS CONNECTED TO CORPORATE HEADQUARTERS VIA MODEMS ON THEIR NOTEBOOKS SPEND MORE TIME ON THE ROAD THEY DON'T NEED AN OFFICE ANYMORE SAYS ROXANNE RICHARDSON THE COMPANY'S INFORMATION CENTER SUPERVISOR OTHER COMPANIES HOPING TO TRIM COSTS AND RESPOND TO THE FAMILY DEMANDS OF BABY BOOMERS HAVE BECOME MORE FLEXIBLE ABOUT WHERE AND WHEN EMPLOYEES WORK THAT MEANS MORE WORK IS DONE AT HOME ON WEEKENDS OR OUT OF THE OFFICE AND THAT HAS INCREASED DEMAND FOR A MACHINE THAT PEOPLE CAN CARRY ANYWHERE ANYONE WHO WANTS TO BE A MAJOR PLAYER IN THE PC BUSINESS BETTER HAVE A SOLID NOTEBOOK SAYS JEFFREY HENNING AN ANALYST AT BIS FOR PROOF OF THAT WITNESS DELL COMPUTER CORP THE AUSTIN TEXAS MAILORDER COMPUTER MARKETER SHELVING ITS NOTEBOOK LINE IN THE SPRING LED TO A FISCAL SECONDQUARTER LOSS OF 757 MILLION DELL'S FIRST RED INK EVER OTHER COMPANIES LIKE PACKARDBELL ELECTRONICS INC ARE TRYING TO FRESHEN UP LIMP NOTEBOOK LINES TO KEEP UP WITH A MARKET THAT HASN'T REACHED TECHNOLOGICAL PUBERTY OVERALL NOTEBOOKS STILL LAG THEIR DESKTOP COUSINS BY ABOUT THREE YEARS WHEN IT COMES TO TECHNOLOGY AND THEY COST AN AVERAGE OF 600 MORE FOR THE SAME KIND OF PERFORMANCE NOTEBOOK BATTERIES RARELY LAST LONGER THAN FOUR TO FIVE HOURS RULING OUT WORKING THROUGHOUT AN INTERNATIONAL AIRPLANE FLIGHT AND THE MACHINES CAN'T YET RUN MICROPROCESSORS LIKE INTEL CORP'S SUPERFAST PENTIUM BECAUSE THE HEAT GENERATED BY THE CHIP IS MORE THAN A NOTEBOOK CAN TAKE THAT HAS LED MANY TO QUESTION WHETHER NOTEBOOKS EVER WILL BECOME MAINSTREAM MACHINES PORTABLE COMPUTERS FOR EXAMPLE HAVE YET TO REACH THE HOME MARKET SUBJECT OF SO MUCH RECENT ATTENTION FROM THEIR DESKTOP BRETHREN NOR HAVE THEY MADE MUCH OF A DENT AT BROADERBASED RETAILERS LIKE COMPUTER CITY OR BEST BUY BUT CUSTOMERS LIKE ROBERT MEARS GIVE DESKTOP MAKERS PAUSE THE DALLAS TELEPHONE TECHNICIAN WHO SPENT TUESDAY AFTERNOON SHOPPING FOR HIS NEW MACHINE SAYS HE NO LONGER CAN AFFORD TO SHUTTLE BACK AND FORTH TO AN OFFICE TO TIE INTO HIS DESKTOP MACHINE I NEED MORE PORTABILITY THAN THAT HE SAYS COMPAQ COMPUTER CORP WHICH HAS SEEN ITS NOTEBOOKCOMPUTER ORDERS JUMP 90 OVER THE PAST YEAR SAYS THAT ABOUT ONETHIRD OF THE PEOPLE WHO BUY ITS NOTEBOOK MACHINES ARE REPLACING DESKTOP COMPUTERS ANOTHER THIRD ARE REPLACING OLDER NOTEBOOKS AND THE REST ARE BUYING THEIR FIRST PC EVER FOR MOST OF THE COMPANIES TRYING TO CAPTURE THAT BUSINESS IT HAS BEEN A WHITEKNUCKLE RIDE APPLE AND IBM FOR INSTANCE HAVE DOMINATED THE BUSINESS IN THE PAST YEAR BUT IN THE FASTMOVING NOTEBOOK MARKET LEADS DON'T LAST LONG MORE THAN HALF THE RETAILERS SURVEYED RECENTLY BY COMPUTER RESELLER NEWS COMPLAINED OF SHORTAGES OF IBM'S THINKPAD AND INDUSTRY WATCHERS HAVE STARTED TO WONDER WHETHER APPLE'S POWERBOOK WILL STAY IN FAVOR IF THE COMPANY DOESN'T SPICE UP THE LINE SOON SIMILARLY RETAILERS AND CUSTOMERS SUGGEST THAT COMPAQ'S RANKING AMONG THE WORLD'S TOP FOUR NOTEBOOK VENDORS COULD BE SHAKEN IF THE COMPANY DOESN'T MORE WIDELY ADAPT A COMMUNICATIONS PROTOCOL CALLED PCMCIA THAT IS ALMOST STANDARD EQUIPMENT ON MOST NOTEBOOK MACHINES MEANWHILE RETAILERS LIKE MR MORTON PRAISE TEXAS INSTRUMENTS INC WHICH HAS CHURNED OUT A STRING OF AWARDWINNING MACHINES BUT GENERATED LITTLE PUBLIC ATTENTION DESPITE DESIGN IMPROVEMENTS THAT MAKE TI'S MACHINES LAST ABOUT 40 LONGER THAN THE INDUSTRY AVERAGE SEVERAL OTHERS ARE STILL SEEKING THEIR NOTEBOOK NICHE AST RESEARCH INC WHICH RECENTLY BOUGHT TANDY CORP'S COMPUTER MANUFACTURING OPERATIONS AND ZENITH DATA SYSTEMS CORP WHICH PURCHASED A STAKE IN PACKARDBELL BOTH ARE WORKING TO DIGEST THEIR ACQUISITIONS AND CERTAINLY THE BATTLE IS ONLY BEGINNING ANALYSTS PREDICT A SPLIT PORTABLE MARKET WITH NOTEBOOKS PLAYING THE ROLE OF DESKTOP MACHINES AND NEW CLASSES OF PRODUCTS SUCH AS HEWLETTPACKARD CO'S POPULAR OMNIBOOK AND HANDHELD DEVICES LIKE APPLE'S NEWTON SERVING PRIMARILY AS COMMUNICATIONS TOOLS BUT FOR NOW EXPERTS GUESS THAT MOST NOTEBOOK USERS WILL BE LIKE JOE HORTON AN EMERGENCY PLANNING ADMINISTRATOR IN SAN MATEO CALIF MR HORTON WHO WORKS WITH FEDERAL AND STATE OFFICIALS IN WRITING EMERGENCY PREPAREDNESS MANUALS SWITCHED RECENTLY TO A TI NOTEBOOK FOR THE EXTRA BATTERY LIFE MR HORTON SAID HE NEEDED THE EQUIVALENT OF A PORTABLE OFFICE PARTICULARLY IN THE EVENT OF AN EMERGENCY THAT WIPED OUT THE POWER FOR DESKTOP PCS NOW THE CONVENIENCE OF THE NOTEBOOK HAS BECOME HABITFORMING EVEN AT HOME I HAVE A DESKTOP AT HOME BUT I NEVER USE IT HE SAYS THIS COMPUTER IS WITH ME WHEREVER I GO 9311110105 931111 HOUSE PANEL BACKS PLAN FOR LENDING IN POOR AREAS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE BANKING COMMITTEE ENDORSED A REVISED VERSION OF PRESIDENT CLINTON'S PLAN TO FINANCE COMMUNITYDEVELOPMENT BANKS AND OTHER LENDERS IN LOWINCOME AREAS THE BILL WOULD CHANNEL 382 MILLION OVER THE NEXT FOUR YEARS INTO A COMMUNITY DEVELOPMENT BANKING AND FINANCIAL INSTITUTION FUND THE FUND WOULD BE USED TO BOOST THE CAPACITY OF BANKS CREDIT UNIONS AND OTHER LENDERS THAT FINANCE COMMUNITYREVITALIZATION PROJECTS MR CLINTON HAS MADE THE INITIATIVE A PILLAR OF HIS EFFORTS TO INCREASE CREDIT AND FINANCIAL SERVICES IN POOR URBAN AND RURAL AREAS OTHER MEASURES ARE DESIGNED TO SPUR COMMERCIALBANK LENDING TO SMALL BUSINESSES CRACK DOWN ON LENDING DISCRIMINATION AND STIFFEN COMMUNITYREINVESTMENT RULES FOR BANKS LIKE A BILL APPROVED BY THE SENATE BANKING COMMITTEE IN SEPTEMBER THE HOUSE BILL ALSO INCLUDES MEASURES TO EASE SOME OF THE RULES CONGRESS IMPOSED ON BANKS IN 1991 THE BANKING INDUSTRY FOUGHT HARD FOR THE REGULATORYRELIEF PROVISIONS WHILE CONSUMER GROUPS GENERALLY OPPOSED THEM THE REGULATORYRELIEF MEASURES IN BOTH THE HOUSE AND SENATE VERSIONS DON'T GO AS FAR AS BANKERS WANT BUT THEY DO ENSURE INDUSTRY SUPPORT FOR THE BILL AMONG OTHER THINGS THE HOUSE BILL WOULD REDUCE THE FREQUENCY OF BANK EXAMINATIONS FOR FINANCIALLY HEALTHY SMALL BANKS AND REDUCE CERTAIN PAPERWORK REQUIREMENTS THE HOUSE BILL DIFFERS FROM THE SENATE VERSION IN SEVERAL RESPECTS FIRST IT WOULD PROVIDE AT LEAST ONETHIRD OF THE MONEY TO COMMERCIAL BANKS RATHER THAN SPECIALLYCHARTERED LENDERS THAT INCREASE BANKING SERVICES AND CREDIT IN LOWINCOME AREAS THE REWARD WOULD COME IN THE FORM OF REDUCTIONS IN PREMIUMS THE BANKS MUST PAY FOR FEDERAL DEPOSIT INSURANCE THE SENATE BILL HAS NO SUCH PROVISION SPONSORS OF THE HOUSE PROVISION REPS FLOYD FLAKE D NY JIM LEACH R IOWA AND THOMAS RIDGE R PA ARGUE THAT IT WOULD GIVE EXISTING BANKS AN INCENTIVE TO STEP UP THEIR EFFORTS TO HELP POOR COMMUNITIES REP JOSEPH KENNEDY D MASS AND OTHERS ARGUED THAT THE MEASURE MERELY WOULD REWARD BANKS FOR DOING WHAT THEY SHOULD BE DOING ANYWAY BUT THE BACKERS SAID THAT ENCOURAGING COMMERCIAL BANKS TO MAKE MORE CREDIT AVAILABLE TO REVITALIZE NEIGHBORHOODS WOULD HAVE A GREATER IMPACT THAN FINANCING A NEW CLASS OF COMMUNITYDEVELOPMENT LENDERS THE SENATE BILL ALSO CONTAINS PROVISIONS DESIGNED TO ENCOURAGE DEVELOPMENT OF A PRIVATE SECONDARY MARKET FOR SMALLBUSINESS LOANS THE HOUSE IS WORKING ON A DIFFERENT PLAN THAT WOULD MAKE IT EASIER FOR BANKS TO PACKAGE SMALLBUSINESS LOANS INTO SECURITIES AND SELL THEM TO INVESTORS THE HOUSE VERSION SPONSORED BY REP PAUL KANJORSKI D PA IS MOVING ON A TRACK PARALLEL TO THE COMMUNITYDEVELOPMENT BILL AND WILL BE RECONCILED WITH THE SENATE PLAN WHEN DIFFERENCES BETWEEN THE HOUSE AND SENATE COMMUNITYDEVELOPMENT BILLS ARE RESOLVED IN A CONFERENCE 9311110104 931102 BUSINESS BRIEF FOAMEX LP ACQUISITION OF PERFECT FIT FROM VESTAR CAPITAL IS SLATED FOAMEX LP A MAKER OF FOAM AND FOAM PRODUCTS THAT PLANS TO GO PUBLIC SAID IT AGREED TO ACQUIRE PERFECT FIT INDUSTRIES INC FROM VESTAR CAPITAL PARTNERS INC FOR ABOUT 67 MILLION INCLUDING DEBT EARLIER THIS YEAR FOAMEX FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL 11 MILLION SHARES THE EAST PROVIDENCE RI COMPANY SAID ITS ACQUISITION OF PERFECT FIT A MAKER OF MATTRESS PADS IN MONROE NC WILL GIVE IT ACCESS TO A WIDE RANGE OF RETAIL CUSTOMERS FOR BEDDING AND HOMECOMFORT PRODUCTS VESTAR IS A CLOSELY HELD NEW YORK INVESTMENT FIRM 9311110103 931111 POLITICS & POLICY PEROT WAS A BIT MISLEADING IN DEBATE AND BOTH MEN WERE LOOSE WITH FACTS BY GERALD F SEIB AND BOB DAVIS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON IN THE HEAT OF HIS NATIONALLY TELEVISED DEBATE WITH VICE PRESIDENT AL GORE ROSS PEROT GAVE A MISLEADING ANSWER ABOUT HIS OWN HISTORY OF LOBBYING IN WASHINGTON AND CLOUDED THE PICTURE ON OTHER ASPECTS OF HIS PERSONAL BUSINESS DEALINGS AT THE SAME TIME BOTH THE VICE PRESIDENT AND MR PEROT PLAYED LOOSE WITH SOME FACTS ABOUT ECONOMIC CONDITIONS IN MEXICO PERHAPS THE TENSEST MOMENT IN THE 90MINUTE DEBATE ON THE NORTH AMERICAN FREE TRADE AGREEMENT CAME WHEN THE VICE PRESIDENT CHARGED THAT MR PEROT DESPITE HIS FREQUENT ATTACKS ON HIGHPAID LOBBYISTS IN WASHINGTON ACTUALLY HAD USED LOBBYISTS HIMSELF TO GET TAX BREAKS FOR YOUR COMPANIES MR PEROT SHOT BACK YOU'RE LYING IN FACT MR PEROT DID USE LOBBYISTS IN A CELEBRATED 1975 EFFORT THAT ALMOST WON HIM A SPECIAL TAX BREAK WORTH AT LEAST 15 MILLION A LENGTHY WALL STREET JOURNAL STORY AT THE TIME DISCLOSED THAT MR PEROT HAD HIRED FORMER INTERNAL REVENUE SERVICE COMMISSIONER SHELDON S COHEN MR COHEN ACKNOWLEDGED THAT HE DRAFTED AN AMENDMENT TO A TAX BILL THAT WOULD HAVE PERMITTED INDIVIDUALS WITH SIZABLE CAPITAL LOSSES TO CARRY THEM BACK FOR THREE YEARS TO OFFSET TAXES PAID ON CAPITAL GAINS IN THOSE YEARS MR PEROT HAD SUFFERED SIGNIFICANT BUSINESS REVERSALS AND WOULD HAVE REAPED THE BIGGEST SINGLE BENEFIT FROM THE CHANGE ACCORDING TO ESTIMATES AT THE TIME THE AMENDMENT LATER WAS KILLED IN THE DEBATE MR GORE ALSO CHARGED THAT ALLIANCE AIRPORT A FORT WORTH TEXAS CARGO AIRPORT AND RELATED MANUFACTURING CENTER IS A PEROT FAMILY PROJECT THAT IS BENEFITING FROM PRECISELY THE KIND OF FREETRADE ARRANGEMENT WITH MEXICO THAT WOULD APPLY ACROSS THE COUNTRY IF NAFTA IS APPROVED IN REPLY MR PEROT ASSERTED THAT ALLIANCE AIRPORT IS OWNED BY THE CITY OF FORT WORTH NOT THE PEROT FAMILY AND THAT THE COMPLEX IS NOT AIMED AT DOING BUSINESS WITH MEXICO IT'S TRUE THAT THE ALLIANCE AIRPORT IS OWNED BY THE CITY OF FORT WORTH BUT THAT'S BECAUSE MR PEROT AND HIS SON AFTER HAVING ACCUMULATED ABOUT 200 MILLION IN LAND NORTH OF FORT WORTH DONATED THE 520 ACRES ENCOMPASSING THE AIRPORT TO THE CITY OF FORT WORTH AS MR PEROT NOTED IN THE DEBATE HIS SON OWNS LAND ADJOINING THE AIRPORT WHICH IS BEING DEVELOPED FOR COMMERCIAL USE THE COMMERCE DEPARTMENT HAS GRANTED THE ALLIANCE PROJECT THE RIGHT TO ESTABLISH A FOREIGNTRADE ZONE IN THE DEVELOPMENT ALLOWING COMPANIES TO IMPORT PARTS MANUFACTURE THEM INTO PRODUCTS AND REEXPORT THEM WITHOUT PAYING IMPORT DUTIES BUT WHILE MR PEROT DECLARED IN THE DEBATE THAT MEXICAN BUSINESS IS ONLY A TINY LITTLE PART OF ALLIANCE'S MISSION THE PROJECT'S APPLICATION TO BECOME A FREETRADE ZONE DECLARED THAT THE PROJECT COULD SHIP GOODS FOR MANY COMPANIES THAT TAKE ADVANTAGE OF MEXICO'S INEXPENSIVE LABOR WHEN THE DEBATE TURNED TO THE SUBSTANCE OF TRADE PRACTICES BOTH MR GORE AND MR PEROT SOMETIMES FUDGED ON THE FACTS MR GORE CLAIMED THAT 23 STUDIES HAVE BEEN DONE ON THE IMPACT OF NAFTA ON US JOBS AND THAT ALL BUT ONE SHOW THE ACCORD WOULD CAUSE AN INCREASE ACTUALLY MANY OF THOSE STUDIES WEREN'T SPECIFICALLY DONE TO SHOW JOB GAINS AND LOSSES AND A NUMBER OF THE STUDIES SHOW ONLY A TINY JOB GAIN AT A NEWS CONFERENCE PRESIDENT CLINTON WAS ASKED ABOUT MR GORE'S ASSERTION REGARDING THE 23 STUDIES THE PRESIDENT DIDN'T ANSWER THE QUESTION DIRECTLY BUT INSTEAD SAID I THINK THAT THE EVIDENCE IS CLEAR THAT NOT JUST IN THE LONG RUN BUT IN THE NEAR RUN WE'LL HAVE MORE JOB GAINS THAN JOB LOSSES FROM NAFTA MR GORE ALSO ASSERTED THAT JUST 1000 OF THE 750000 NEW CARS BOUGHT IN MEXICO LAST YEAR WERE SOLD BY AMERICA'S BIG THREE AUTO MAKERS IN FACT THE BIG THREE EXPORTED ONLY 1032 PASSENGER CARS TO MEXICO LAST YEAR BUT THEY STILL CONTROL THE VAST BULK OF THE MEXICAN MARKET ALMOST ALL OF THE US CARS ARE MADE IN MEXICO RATHER THAN EXPORTED THERE FROM PLANTS IN THE US BECAUSE IMPORTS ARE SEVERELY RESTRICTED BY PROTECTIONIST LAWS SOUTH OF THE BORDER WHICH WOULD BE PHASED OUT OVER 15 YEARS WITH NAFTA AND MR PEROT ASSERTED THAT THE US WOULD HAVE TO SPEND AS MUCH AS 55 BILLION TO CLEAN UP THE USMEXICAN BORDER AND TO BUILD INFRASTRUCTURE UNDER NAFTA EVEN THE SIERRA CLUB A STALWART OF THE ANTINAFTA MOVEMENT ESTIMATES THE COST AT 207 BILLION THE CLINTON ADMINISTRATION PUTS THE FIGURE FAR LOWER THAN THAT 9311110102 931111 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO IF THE SHOE DOESN'T FIT WHY DO WOMEN WEAR IT FIT STILL TAKES A BACK SEAT TO FASHION SAY WOMEN SHOE FIRMS AND FOOT SURGEONS A STUDY BY DR MICHAEL COUGHLIN BOISE IDAHO WHICH FOUND THAT 87 OF HIS 2071 FRONTOFFOOT SURGERY PATIENTS WERE WOMEN BLAMED ILLFITTING SHOES YET MEREDITH RICH AN ACTRESS IN NEW YORK SAYS SHE WILL PUT HER FEET IN TIGHT SHOES JUST FOR THE LOOK BUT BARBARA BOWER AN EXECUTIVE IN DALLAS SAYS SHOES MUST BE ABLE TO GET YOU DOWN THE CONCOURSE AT O'HARE SHOEMAKERS BLAME LACK OF COMFORT ON THE COMPETITIVE NEED TO TURN OUT A WIDE SELECTION OF STYLES IT'S A NUMBERS GAME SAYS MIKE KORMOS OF FOOTWEAR MARKET INSIGHTS NASHVILLE TENN WOMEN'S SHOES WOULD FIT BETTER IF THEY CAME IN MORE WIDTHS BUT THAT MEANS STORES WOULD HAVE TO KEEP MORE IN STOCK HE SAYS MEN GET MORE SIZES BUT FEWER STYLES THERE IS SOME REPRIEVE FOR WOMEN COMPANIES ARE STARTING TO FOCUS ON COMFORT CITING THE NUMBER OF WORKING WOMEN AND THE AGING OF THE MARKET NINE WEST ADDS TO PADDING ON ITS SOLES AND FOCUSES ON LOW HEELS KENNETH COLE WIDENS THE FIT FROM A FEW YEARS AGO THE FILM OF NEW YORK CITY BALLET'S THE NUTCRACKER WITH STAR MACAULAY CULKIN MAKES SOME TROUPES WARY ABOUT HOW THEIR OWN HOLIDAY PRODUCTIONS USUALLY THEIR ONLY SURE MONEYMAKER WILL FARE I'M KNOCKING ON EVERY PIECE OF WOOD SAYS JOYCE MOFFATT OF HOUSTON BALLET ITS NUTCRACKER MUST VIE WITH THE FILM WHICH OPENS NOV 24 AND DISNEY'S STAGE VERSION OF BEAUTY AND THE BEAST PREMIERING IN HOUSTON THIS MONTH THE BALLET BEGAN ITS MARKETING EARLIER THAN IN '92 AND ADS STRESS THE WORD LIVE BUT OTHER COMPANIES HOPE THE MOVIE WILL PIQUE GREATER INTEREST IN THE LIVE PERFORMANCE THE MOVIE WILL DRUM UP DISCOUNT BUSINESS FOR NEXT YEAR'S NUTCRACKER' SAYS DAVID OAKLAND OF THE CLEVELAND/SAN JOSE BALLET IN KANSAS CITY THE STATE BALLET OF MISSOURI WORKS OUT A NOVEL PROMOTION WITH AMC THEATERS WHICH WILL GIVE OUT DISCOUNT COUPONS TO THE LIVE PERFORMANCES AND RUN ADS FOR THE BALLET PRODUCTION BETWEEN SCREENINGS OF THE FILM PETER F DRUCKER URGES NONPROFITS TO TAKE STOCK OF THEMSELVES THE A WORD ACCOUNTABILITY GOVERNS MANY NONPROFIT CONFERENCES THESE DAYS MR DRUCKER THE MANAGEMENT EXPERT THIS WEEK UNVEILED A SELFASSESSMENT TOOL AT A SESSION OF HIS FOUNDATION FOR NONPROFIT MANAGEMENT SIMPLY PUT THE GUIDE AND WORKBOOKS ASK NONPROFIT LEADERS BOARDS VOLUNTEERS AND STAFFERS FIVE DRUCKER QUESTIONS THE QUERIES RANGE FROM WHAT IS OUR MISSION TO WHAT IS OUR PLAN MR DRUCKER ADMITS HIS ISN'T THE FIRST SUCH PROGRAM BUT HE NOTES IT IS DOITYOURSELF NO TRAINING CENTER NEEDED ONE GOAL TO REVEAL HIDDEN DISAGREEMENTS THE PROGRAM WORKS UNLESS YOU ARE AFRAID OF FACING UP TO FACTS HE SAYS SEPARATELY THE AMERICAN ASSOCIATION OF FUNDRAISING COUNSEL IN NEW YORK ISSUES A DONOR BILL OF RIGHTS THAT INCLUDES KNOWING HOW A GROUP WILL USE FUNDS AND GETTING ONE'S NAME OFF A MAILING LIST A NATIONAL CENTER FOR NONPROFIT BOARDS FORUM NEXT WEEK PLANS A TALK BY THE HEAD OF UNITED WAY OF AMERICA ON RESTORING PUBLIC CONFIDENCE THE REVENGE OF THOSE WHO WAIT IN THE WORKS IN NEW JERSEY'S ASSEMBLY IS A BILL THAT REQUIRES RETAILERS CABLETV INSTALLERS AND SUCH TO SPECIFY EITHER A MORNING OR AFTERNOON DELIVERY TIME THEY WOULD BE FINED 500 IF THEY DON'T ADVISE CONSUMERS OF POSSIBLE DELAYS GOING TO THE SOURCE THE NORTH CAROLINA BANKERS ASSOCIATION WILL HOLD ROBBERYPREVENTION WORKSHOPS THIS MONTH CONDUCTED BY A FORMER BANK ROBBER WHO SERVED NINE YEARS IN FEDERAL PRISONS A WORD ON AUTHORS A EUROPEAN COMMUNITY COPYRIGHT AGREEMENT THAT ESTABLISHES PROTECTION FOR 70 YEARS AFTER THE DEATH OF THE AUTHOR HAS A SPECIAL RULE ON FILM AND AUDIOVISUAL WORKS IT ALLOWS BRITAIN TO RECOGNIZE THE PRODUCER AS THE AUTHOR WHILE ON THE CONTINENT THE DIRECTOR IS AUTHOR LOOKING TO MAKE THE DECENNIAL COUNT LESS TEDIOUS THE CENSUS BUREAU BEGINS TESTING IN SMALL SURVEYS NEW OPTIONS FOR RESPONDING LIKE CALLING A PHONE CENTER TO ANSWER QUESTIONS OR DIALING IN THE DATA VIA COMPUTER MODEM THE AIM IS TO REDUCE THE NUMBER OF HOME VISITS BY FIELD WORKERS TO NONRESPONDENTS OUR BIGGEST COST SAYS THE BUREAU'S ARNOLD JACKSON IN 1990 HOME VISITS MADE UP ABOUT 20 OF THE CENSUS'S 25 BILLION COST MEANWHILE THE BUREAU MULLS LAPTOPS FOR FIELDWORKERS TO SKIP THE TASK OF CONVERTING HANDWRITTEN DATA INTO COMPUTER RECORDS MR ARNOLD SAYS THE BUREAU WILL TRY OUT LAPTOPS IN JANUARY FOR THE MONTHLY POPULATION SURVEY IT DOES FOR THE LABOR DEPARTMENT IT'S ALSO TESTING SIMPLER PRINTED FORMS THAT USE MORE COLOR AND VARIED TYPE PRINTS IN THE EARLY PLANNING STAGES COMPUTER KIOSKS CITIZENS CAN USE TO FILL OUT FORMS ROCHESTER INSTITUTE OF TECHNOLOGY'S RESEARCH CORP WILL SET UP A DIGITALIMAGINGBASED SYSTEM TO SCAN AND STORE THE CENSUS'S MORE THAN 120 MILLION FORMS BRIEFS NOT LIKE WHAT GRANDMA USED TO MAKE A THANKSGIVING TURKEY STUFFING RECIPE FROM WHITE CASTLE THE FASTFOOD FIRM CALLS FOR 10 OF ITS BURGERS BUNS AND ALL WAIFWORN STOREMANNEQUIN MAKER PUCCI INTERNATIONAL NEW YORK FOLLOWS A HOT FASHION TREND WITH A SUPERSKINNY SLOPESHOULDERED WAIF MODEL 9311110101 931111 SECRETARY OF STATE FIRES TWO AIDES AFTER BRIEFING WASHINGTON SECRETARY OF STATE WARREN CHRISTOPHER ABRUPTLY DISMISSED TWO AIDES AFTER BEING BRIEFED ON AN INVESTIGATION INTO CHARGES THAT DEPARTMENT EMPLOYEES MAY HAVE VIOLATED THE LAW BY DISCLOSING INFORMATION FROM PERSONNEL FILES STATE DEPARTMENT SPOKESMAN MICHAEL MCCURRY SAID YESTERDAY THAT AFTER BEING BRIEFED ON THE DEPARTMENT INSPECTOR GENERAL'S PRELIMINARY REPORT ON THE INCIDENT THE SECRETARY IMMEDIATELY LOST CONFIDENCE IN TWO EMPLOYEES ALTHOUGH MR MCCURRY REFUSED TO PROVIDE OTHER DETAILS IT IS UNDERSTOOD THAT THE TWO AIDES WERE DIRECTLY CONNECTED TO THE UNAUTHORIZED DISCLOSURE OF INFORMATION THE TWO FIRED EMPLOYEES ARE MARK SCHULHOF A STAFF ASSISTANT TO THE ASSISTANT SECRETARY OF STATE FOR PUBLIC AFFAIRS AND JOSEPH TARVER WHO WAS DIRECTOR OF THE DEPARTMENT'S WHITE HOUSE LIAISON OFFICE NEITHER OF THE MEN COULD BE REACHED FOR COMMENT THE DEPARTMENT INITIATED ITS PROBE IN SEPTEMBER AFTER SOME OFFICIALS IN THE DEPARTMENT'S WHITE HOUSE LIAISON OFFICE RETRIEVED 160 PERSONNEL FILES OF POLITICAL APPOINTEES IN THE BUSH ADMINISTRATION AND LEAKED SOME OF THE CONTENTS TO THE WASHINGTON POST UNDER THE PRIVACY ACT DISCLOSURE OF THE INFORMATION WOULD BE A CRIMINAL OFFENSE MR MCCURRY SAID THE JUSTICE DEPARTMENT IS CONDUCTING ITS OWN PROBE 9311110100 931111 INTERNATIONAL HOECHST'S PROFIT DECLINED BY 65 IN THIRD QUARTER GERMAN CHEMICAL GIANT HOECHST AG FRANKFURT POSTED A 65 DROP IN THIRDQUARTER PROFIT AND HINTED AT A 1993 DIVIDEND CUT FINANCIAL MARKETS WERE STARTLED BY THE DEPTH OF THE DECLINE WE WERE EXPECTING BAD FIGURES BUT THEY WERE CONSIDERABLY WORSE THAN ANTICIPATED SAID ALASTAIR KILGOUR CHEMICAL INDUSTRY ANALYST AT BNP SECURITIES IN LONDON HOECHST SAID PRETAX PROFIT DROPPED TO 143 MILLION MARKS 845 MILLION IN THE THIRD QUARTER FROM 406 MILLION MARKS IN THE YEAREARLIER PERIOD CHIEF EXECUTIVE WOLFGANG HILGER ADDED THAT THE FULL YEAR WOULDN'T SEE AN IMPROVEMENT MANAGEMENT BOARD MEMBER JUERGEN DORMANN SAID THAT A DIVIDEND WOULD BE PAID FOR 1993 BUT SUGGESTED THAT INVESTORS SHOULD BE PREPARED FOR A REDUCTION ANALYSTS FORECAST A CUT TO BETWEEN FOUR MARKS 236 AND SIX MARKS DOWN FROM NINE MARKS FOR 1992 AFTER THE ANNOUNCEMENT A NUMBER OF ANALYSTS LOWERED ESTIMATES FOR HOECHST'S NET INCOME THIS YEAR IN 1992 HOECHST RECORDED NET OF 118 BILLION MARKS THOMAS SCHIESSLE ANALYST AT BHF TRUST MANAGEMENT IN FRANKFURT LOWERED HIS 1993 FORECAST TO 692 MILLION MARKS FROM 770 MILLION MARKS 9311110099 931111 ECONOMY WITH BALANCED BUDGET ON HOLD CONGRESS ABOUNDS WITH PROPOSALS TO CUT SPENDING BY DAVID WESSEL AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON JUST THREE MONTHS AFTER CONGRESS SWALLOWED A SPOONFUL OF DEFICIT REDUCTION WITH GREAT DIFFICULTY A SURPRISINGLY LARGE CONTINGENT OF LEGISLATORS IS CLAMORING FOR ANOTHER DOSE PROPOSALS TO TRIM PROJECTED FEDERAL SPENDING SOMEWHERE BETWEEN A LITTLE AND A LOT ARE PROLIFERATING IN CONGRESS AND IT LOOKS INCREASINGLY LIKELY THAT ONE WILL PASS BEFORE YEAR END WITH THE FIGHT OVER A CONSTITUTIONAL AMENDMENT TO REQUIRE A BALANCED BUDGET PUT OFF UNTIL EARLY NEXT YEAR MEMBERS OF CONGRESS ARE LOOKING FOR SOME OTHER WAY TO DEMONSTRATE THEY'RE TOUGH ON SPENDING THE LATEST ALTERNATIVE WAS UNVEILED YESTERDAY BY SEN BOB KERREY D NEB AND 14 OTHER SENATORS WHO SAID IT WOULD SAVE 109 BILLION OVER FIVE YEARS THERE IS AN URGENT NEED TO RESTORE THE CONFIDENCE OF THE AMERICAN PEOPLE IN GOVERNMENT SAID ONE OF THE BACKERS SEN KENT CONRAD D ND THE CLINTON ADMINISTRATION ALREADY HAVING TROUBLE FIGURING HOW TO MEET THE SPENDING CEILINGS THAT WERE WRITTEN INTO LAW IN AUGUST IS ALARMED THAT SOME OF THE PENDING BILLS SUCH AS ONE SPONSORED BY REPS TIM PENNY D MINN AND JOHN KASICH R OHIO WOULD LOWER THOSE CEILINGS FURTHER THE SENATE APPROACH AS SPELLED OUT YESTERDAY IS KINDER TO MR CLINTON'S AGENDA IT WOULD SIMPLY BE AN EARLY VOTE ON THE SORT OF MONEYSAVING PROPOSALS THAT MR CLINTON WOULD BE FORCED TO MAKE NEXT YEAR BY THE DEFICITREDUCTION LAW SPENDING CEILINGS WOULD REMAIN UNCHANGED AND NEITHER TOTAL SPENDING NOR THE DEFICIT IN THE NEXT FEW YEARS WOULD BE ANY LOWER THAN CURRENTLY PROJECTED HARDLINERS IN CONGRESS WOULD OBJECT LOUDLY BUT MEMBERS COULD GO HOME WAVING A LIST OF SPENDING CUTS FOR WHICH THEY HAVE VOTED THE WHITE HOUSE FIGURES ITS MOST EFFECTIVE ARGUMENT AGAINST CARRYING AUSTERITY TOO FAR IS THAT HEALTHCARE REFORM WOULD BE IMPERILED BOTH THE PENNYKASICH AND THE KERREY PROPOSALS INCLUDE CHANGES TO MEDICARE AND MEDICAID THAT MR CLINTON IS COUNTING ON TO HELP FINANCE HIS HEALTHCARE INITIATIVE HEALTHCARE REFORM IS THE COUNTRY'S BEST CHANCE OF BRINGING DOWN THE STRUCTURAL DEFICIT WHITE HOUSE ECONOMICPOLICY AIDE GENE SPERLING SAID YESTERDAY THINGS LIKE THE BALANCEDBUDGET AMENDMENT AND PENNYKASICH WILL BE DESTRUCTIVE OF THAT EFFORT EVEN THOUGH THE CONGRESSIONAL BUDGET OFFICE SAYS THE DEFICITREDUCTION LAW SIGNIFICANTLY BRIGHTENED THE BUDGETARY OUTLOOK FOR THE NEXT SEVERAL YEARS MANY MEMBERS OF CONGRESS INSIST ON REVISITING THE DEFICIT QUESTION THIS YEAR INTERVIEWS WITH POLITICIANS FROM BOTH PARTIES TURN UP SEVERAL REASONS THE LAW SUFFERS FROM AN ENORMOUS CREDIBILITY GAP THE LEGACY OF OVERPROMISES THAT ACCOMPANIED PAST DEFICITCUTTING PROGRAMS DESPITE THE HEADLINES ABOUT HAITI SOMALIA AND BOSNIA TWICE AS MANY PEOPLE RESPONDING TO A RECENT WALL STREET JOURNAL/NBC NEWS POLL SAID MR CLINTON HAS DONE A GOOD JOB SERVING AS COMMANDER IN CHIEF 32 AS SAID HE HAS DONE A GOOD JOB REDUCING THE BUDGET DEFICIT 16 CHARGES FROM REPUBLICANS AND EVEN SOME DEMOCRATS THAT THE DEFICIT LAW WAS TOO HEAVY ON TAX INCREASES AND TOO LIGHT ON SPENDING CUTS RESONATE WITH THE PUBLIC THERE'S NOT A DAY THAT I SIT DOWN AND READ LETTERS FROM CONSTITUENTS THAT THERE'S NOT A STRONG LETTER ABOUT SPENDING SAYS MINNESOTA REP DAVID MINGE A FRESHMAN DEMOCRAT THE PUBLIC IS UNSWAYED BY THE CONGRESSIONAL BUDGET OFFICE'S TALLY THAT THE LAW REDUCED SPENDING BY 146 BILLION OVER FIVE YEARS FROM WHAT IT WOULD OTHERWISE HAVE BEEN OR BY THE FACT THAT THE LAW ESSENTIALLY FREEZES TOTAL CONGRESSIONAL APPROPRIATIONS FOR DEFENSE AND DOMESTIC PROGRAMS FOR FIVE YEARS ALTHOUGH MANY PAST DEFICITCUTTING PLANS HAVE ONLY SLOWED THE GROWTH OF FEDERAL SPENDING THE PENNYKASICH PLAN WOULD FORCE CONGRESS TO APPROPRIATE FEWER DOLLARS IN THE NEXT COUPLE OF YEARS THAN IT DID THIS YEAR NOT EVEN ALLOWING FOR INCREASES TO COVER INFLATION DEMOCRATS WHO VOTED FOR THE UNPOPULAR DEFICIT PROGRAM NOW WELCOME A CHANCE TO VOTE FOR SPENDING CUTS EVEN IF THE MEASURES DON'T ACTUALLY REDUCE THE DEFICIT FURTHER OR EVEN IF THEY DON'T EVER BECOME LAW INDEED SOME REPUBLICANS ARE SHYING AWAY FROM THE ANTISPENDING BANDWAGON FOR JUST THIS REASON YOU WONDER HOW MUCH OF THIS IS MEANT FOR POLITICAL COVER AND HOW MUCH OF IT IS REALLY MEANT TO CUT SPENDING SAYS REP RICK LAZIO R NY MANY FRESHMEN MEMBERS OF CONGRESS ARE PARTICULARLY EAGER TO TAKE A WHACK AT SPENDING IN THE HOUSE FOR INSTANCE ABOUT 70 OF THE NEW MEMBERS VOTED TO KILL THE SUPERCONDUCTING SUPERCOLLIDER THE CONTROVERSIAL ATOMSMASHER IN TEXAS THAT FINALLY SUCCUMBED TO PERENNIAL ASSAULTS 57 OF HOUSE VETERANS VOTED THE SAME WAY FINALLY THERE'S ROSS PEROT IT'S ONE OF THE LEGACIES OF ROSS PEROT REALLY FOCUSING ON SPENDING SAYS GOP POLLSTER GLEN BOLGER IRONICALLY MR PEROT'S BUDGET PLAN WOULD HAVE RAISED TAXES EVEN MORE THAN MR CLINTON AND CONGRESS DID LAST SUMMER THE EFFORTS TO CUT SPENDING THIS YEAR ARE SPECIFIC BUT THEY ALSO ENGAGE IN OCCASIONAL DOUBLECOUNTING THE NEW SENATE PROPOSAL INCLUDES 267 BILLION IN SAVINGS FROM EMBRACING MR CLINTON'S PLAN TO ELIMINATE 252000 FEDERAL JOBS THE SENATE ALREADY HAS VOTED TO USE MOST OF THAT MONEY TO FINANCE ANTICRIME PROGRAMS OF THE 109 BILLION TOTAL 305 BILLION WOULD COME FROM MAKING MEDICARE BENEFICIARIES PAY MORE FOR THEIR HEALTH CARE AN ADDITIONAL 254 BILLION WOULD COME FROM FREEZING OVERHEAD SPENDING ON FEDERAL AGENCIES THE NINE DEMOCRATS AND SIX REPUBLICANS SPONSORING THE SENATE BILL DEFLECTED ONE SOURCE OF OPPOSITION BY WATERING DOWN A PENNYKASICH PROPOSAL TO DEFER COSTOFLIVING INCREASES IN PENSIONS PAID TO THOSE WHO RETIRE FROM THE MILITARY BEFORE AGE 62 SENATE DEMOCRATIC LEADER GEORGE MITCHELL OF MAINE HAD PROMISED ADVOCATES OF THE BALANCEDBUDGET AMENDMENT A VOTE SOMETIME THIS MONTH REPUBLICAN SUPPORTERS HOWEVER INITIATED A MOVE TO DELAY THE VOTE FEARING THAT IT COULDN'T BE DEBATED ADEQUATELY IN THE ENDOFSESSION CRUSH THE FIERCE OPPOSITION OF SEN ROBERT BYRD D WVA WHOSE SKILL AT PARLIAMENTARY MANEUVERING IS LEGENDARY ALSO WAS A FACTOR IN THE PROPONENTS' DECISION TO SEEK A DELAY STILL THE MEASURE APPEARS TO HAVE THE SUPPORT OF CLOSE TO THE 67 SENATORS REQUIRED FOR A CONSTITUTIONAL AMENDMENT 9311110098 931111 INTERNATIONAL SINGAPORE OFFICIAL SAYS IT'S TIME FOR US TO TREAT CHINA AS PARTNER NOT PARIAH BY KAREN ELLIOTT HOUSE AND URBAN C LEHNER STAFF REPORTERS OF THE WALL STREET JOURNAL SINGAPORE PRESIDENT CLINTON SHOULD USE HIS SUMMIT WITH CHINESE PRESIDENT JIANG ZEMIN TO SIGNAL HE IS WILLING TO TREAT CHINA AS A STRATEGIC PARTNER NOT A THIRDWORLD PARIAH THAT'S THE VIEW OF LEE KUAN YEW SINGAPORE'S SENIOR MINISTER IN AN INTERVIEW MR LEE URGED THAT THE US MAKE A DEAL WITH CHINA THAT WOULD GUARANTEE ITS ACCESS TO THE US MARKET IN EXCHANGE FOR CHINA'S COOPERATION IN HALTING THE SPREAD OF NUCLEAR AND MISSILE TECHNOLOGY TO NATIONS SUCH AS IRAN AND NORTH KOREA IF WASHINGTON CONTINUES TO LINK TRADE AND HUMAN RIGHTS HE SAID THE US RISKS CONSTANT AND COSTLY CONFRONTATION WITH CHINA OVER THE NEXT DECADE THE US AGENDA SHOULD BE TO CRAFT A WORLD IN WHICH PEACE AND STABILITY ARE MORE ASSURED AND LESS THREATENED AND SO LESS COSTLY TO MAINTAIN HE SAID IF YOU HAVE A CHINA OUT TO MAKE MISCHIEF THAT INCREASES THE COSTS WHY NOT HOIST THIS FELLOW ON BOARD HE NEEDS YOU AT THIS MOMENT IN 10 YEARS HE MIGHT NOT RIGHT NOW MR LEE SAID CHINA WANTS STABILITY AND CERTAINTY AS IT CARRIES OUT ITS ECONOMIC REFORMS THEY DON'T WANT TO ADD TO THE UNCERTAINTIES WITH THIS CONSTANT NAGGING AND BADGERING ON TRADE HUMAN RIGHTS AND TRANSFERS OF MISSILE TECHNOLOGY HE SAID THE SENIOR MINISTER MADE HIS REMARKS DURING AN INTERVIEW FOCUSING ON PRESIDENT CLINTON'S SUMMIT WITH THE CHINESE LEADER NOV 19 IN SEATTLE AND ON A MEETING THERE EARLIER NEXT WEEK AT WHICH LEADERS OF ASIANPACIFIC COUNTRIES ARE TO DISCUSS TRADE COOPERATION WHILE FEW EXPECT THE CLINTONJIANG SUMMIT TO BE MORE THAN A GETACQUAINTED SESSION AFTER A LONG LAPSE IN CONTACTS AT THE HIGHEST LEVEL MR LEE SAID THE MEETING IS IMPORTANT BECAUSE THE CHINESE WILL BE TAKING MR CLINTON'S MEASURE IF JIANG ZEMIN LEAVES SEATTLE WITH THE IMPRESSION THAT PRESIDENT CLINTON IS A HUMANRIGHTS IDEOLOGUE WHO IS NOT PRAGMATIC ENOUGH TO CUT A DEAL THEN USCHINA PROBLEMS WILL KEEP ON FESTERING MR LEE SAID BUT HE ADDED IF PRESIDENT CLINTON LEAVES JIANG WITH A STRONG IMPRESSION OF A LIBERAL PRESIDENT WHO IS ALSO A HARDHEADED REALIST ALTHOUGH ONE UNDER PRESSURE FROM THE LIBERAL WING OF THE DEMOCRATIC PARTY AND OTHER LOBBIES THEN THERE IS THE BEGINNING OF A DEAL USCHINA RELATIONS CORDIAL DURING THE COLD WAR WHEN BOTH POWERS COOPERATED TO THWART SOVIET EXPANSION HAVE BEEN STRAINED SINCE CHINA'S JUNE 1989 MASSACRE OF DEMOCRACY DEMONSTRATORS IN TIANANMEN SQUARE CHINESE LEADERS ARE HUMILIATED THAT THE US PRESIDENT MUST EACH YEAR REVIEW CHINA'S HUMANRIGHTS RECORD BEFORE DECIDING WHETHER TO GRANT CHINA MOST FAVORED NATION STATUS WHICH ALLOWS CHINA ACCESS TO THE US MARKET ON THE SAME TARIFF AND OTHER TERMS THAT OTHER MAJOR US TRADING PARTNERS RECEIVE MR LEE WHO TRAVELS OFTEN TO CHINA SEEMED TO WANT TO GIVE MR CLINTON THE BENEFIT OF THE DOUBT BUT THE 70YEAROLD FORMER PRIME MINISTER LAUGHINGLY OFFERED WHAT AMOUNTED TO SOME FATHERLY ADVICE ABOUT CHINA'S LEADERSHIP THEY ARE NEVER GOING TO GIVE UP THEIR RIGHT TO GOVERN CHINA THEIR WAY THEY WILL MAKE TACTICAL CYNICAL CONCESSIONS ON HUMAN RIGHTS OR DEMOCRACY OR WHATEVER BUT THERE WILL BE NO CONVERSION ON THE ROAD TO DAMASCUS A HIGH PRIORITY FOR THE CHINESE IS MEMBERSHIP IN THE GENERAL AGREEMENT ON TARIFFS AND TRADE GATT MEMBERSHIP WOULD REQUIRE THE US TO EXTEND CHINA PERMANENT MFN STATUS AND THUS DETACH HUMAN RIGHTS FROM ACCESS TO THE US MARKET HE CONCEDED THAT CHINA HASN'T YET MADE SUFFICIENT PROGRESS TOWARD A MARKET ECONOMY TO QUALIFY FOR GATT MEMBERSHIP BUT SAID CHINA IS PREPARED TO DO WHAT IS NECESSARY TO QUALIFY MR LEE INSISTED SUCH A DEAL WOULD BENEFIT THE US BY SECURING CHINA'S COOPERATION IN REINING IN NUCLEARWEAPONS DEVELOPMENT PROGRAMS IN IRAN AND NORTH KOREA NORTH KOREA WHICH REFUSES TO ALLOW INTERNATIONAL INSPECTIONS OF ITS NUCLEAR SITES IS BELIEVED TO BE CLOSE TO BUILDING A NUCLEAR WEAPON ITS NEARTOTAL ISOLATION AND ERRATIC BEHAVIOR UNDER OCTOGENARIAN LEADER KIM IL SUNG ADD TO INTERNATIONAL ANXIETIES NOBODY IS ABLE TO PREDICT WHAT AN AILING DESPERATE OLD MAN IN HIS 80S WILL DO WHEN CORNERED IN HIS ECCENTRIC BLACK HOLE MR LEE SAID BECAUSE CHINA IS THE MAJOR SUPPLIER OF OIL FOR NORTH KOREA BEIJING'S LEVERAGE WOULD BE CRITICAL TO THE SUCCESS OF ECONOMIC SANCTIONS IF THAT'S THE ROUTE THAT THE UNITED NATIONS AND THE US CHOOSE TO TAKE AGAINST PYONGYANG WITHOUT OIL THEY CAN'T RUN AN ECONOMY NOT EVEN ONE AS PRIMITIVE AS NORTH KOREA'S MR LEE SAID BUT HE WARNED THE CHINESE ARE NOT GOING TO GIVE THAT CARD AWAY UNTIL THEY HAVE OTHER THINGS SECURED BEYOND MEMBERSHIP IN GATT THE OTHER THINGS THE CHINESE SEEK TO SECURE INCLUDE AN END TO WHAT THEY SEE AS THE US'S ATTEMPTS TO WEAKEN THE CURRENT LEADERSHIP THEY ARE CONVINCED THAT THE US WANTS TO UNDERMINE THE CURRENT REGIME MR LEE SAID ASKED HOW HE RATES THE PROSPECTS OF CHINA BREAKING INTO SMALLER POLITICAL AND ECONOMIC UNITS WITH GREATER INDEPENDENCE FROM BEIJING MR LEE PAUSED FOR A LONG MOMENT IF THERE ARE SUDDEN REVERSALS IN THEIR ECONOMY PLUS SEVERAL BAD HARVESTS THAT COULD BE THE BEGINNING OF AN UNRAVELING IF THE LEADERSHIP IS BLAMED FOR IT AND IF THE POLITICAL AND MILITARY LEADERSHIP THEN SPLITS IT'S NOT THEIR FEAR OF MINORITIES BREAKING AWAY BUT OF THE SYSTEM BREAKING UP AND CHINA AGAIN REDUCED TO CHAOS 9311110097 931111 INTERNATIONAL REICHMANN AND SOROS PLAN TO CONSTRUCT 3 REALESTATE PROJECTS IN MEXICO CITY BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY CANADIAN DEVELOPER PAUL REICHMANN AND INVESTOR GEORGE SOROS SAID THEY WILL BUILD THREE AMBITIOUS REALESTATE PROJECTS IN MEXICO CITY THAT COULD COST AS MUCH AS 15 BILLION THE ANNOUNCEMENT UNDERSCORES THE FEELING AMONG MANY INVESTORS THAT MEXICO WILL PROVIDE ATTRACTIVE OPPORTUNITIES IN COMING YEARS DESPITE THE UNCERTAINTY OVER THE PROSPECTS FOR THE NORTH AMERICAN FREE TRADE AGREEMENT AND THE CONCERN CAUSED BY THIS WEEK'S PLUNGE IN THE PESO THE PLAN ALSO MARKS MR REICHMANN'S RETURN TO BIG PROJECTS FOLLOWING THE CANARY WHARF MESS IN LONDON THAT BROUGHT HIS COMPANY OLYMPIA & YORK DEVELOPMENTS LTD TO THE BRINK OF DISASTER LAST YEAR THE MOVES ARE RISKY HOWEVER BECAUSE THEY INVOLVE HUGE AMOUNTS OF OFFICE SPACE AT A TIME WHEN MEXICO CITY IS EXPERIENCING ITS BIGGEST GLUT OF SUCH SPACE IN YEARS HISTORICALLY MEXICO CITY HAS HAD RENTAL CHARGES THREE TIMES AS HIGH AS THOSE FOR COMPARABLE SPACE IN THE US LARGELY BECAUSE THE VACANCY RATES WERE AN ASTONISHINGLY LOW 1 IN MEXICO CITY COMPARED WITH 10 TO 20 IN THE US BUT THE PROSPECTS OF A FREETRADE AGREEMENT WITH THE US TOGETHER WITH A GENERAL ECONOMIC UPTURN IN MEXICO PROMPTED LOCAL DEVELOPERS TO BUILD AS MUCH PRIME OFFICE SPACE IN MEXICO CITY OVER THE PAST TWO YEARS AS HAD BEEN ERECTED IN THE PRIOR 25 AS A RESULT DEVELOPERS SAY VACANCY RATES HAVE SURGED TO PERHAPS 13 SOME STUDIES SAY THAT RATE COULD HIT 20 IN THE NEXT COUPLE OF YEARS DEVELOPERS SAY THE VACANCY RATES HAVE FORCED DOWN RENTAL CHARGES 15 TO 20 DURING THE PAST FEW MONTHS AND THEY WILL PROBABLY KEEP FALLING MR REICHMANN SAID AT A NEWS CONFERENCE HERE THAT HE WILL MINIMIZE HIS RISK BY NOT BUILDING ON SPECULATION PART OF OUR PLAN IN THESE PROJECTS IS TO BUILD OFFICE SPACE ONLY IN QUANTITIES THAT THE MARKET CAN ABSORB HE SAID ONE OF THE PROJECTS WILL INVOLVE 20 ACRES OF OFFICE BUILDINGS HOTEL SPACE SHOPPING AREAS RESTAURANTS RESIDENCES AND ENTERTAINMENT FACILITIES IN THE SANTA FE AREA BEING DEVELOPED WEST OF THE CITY THE 1600ACRE SANTA FE AREA IS STATEOFTHEART AND THE PROJECT'S COORDINATORS ARE COUNTING ON THE REICHMANN DEVELOPMENT TO HELP MAKE THE SITE A PRESTIGE ADDRESS BUT IT IS ALSO MILES WEST OF THE CITY AND SOME DEVELOPERS QUESTION WHETHER ENOUGH BIG COMPANIES WILL BE WILLING TO LOCATE THAT FAR AWAY FROM THE HEART OF DOWNTOWN A SECOND PROJECT WILL CONSIST OF OFFICE SPACE AND RESIDENTIAL UNITS IN THE HISTORIC CENTER OF MEXICO CITY IN AN AREA KNOWN AS THE ALAMEDA THAT THE 1985 EARTHQUAKE DEVASTATED THE THIRD PROJECT WILL BE A 42STORY OFFICE BUILDING ON THE PASEO DE LA REFORMA THE CITY'S MAIN ARTERY THE PROJECTS WILL BE UNDERTAKEN BY REICHMANN INTERNATIONAL LP A 5050 JOINT VENTURE BETWEEN MESSRS REICHMANN AND SOROS 9311110096 931111 DAUPHIN DEPOSIT UNIT SUED BY PENNSYLVANIA OVER FEES ON IRAS SPECIAL TO THE WALL STREET JOURNAL HARRISBURG PA PENNSYLVANIA SUED DAUPHIN DEPOSIT BANK & TRUST CO A UNIT OF DAUPHIN DEPOSIT CORP ALLEGING THE BANK BROKE A PROMISE TO CONSUMERS WHEN IT BEGAN IMPOSING FEES THIS YEAR ON HIGHYIELDING INDIVIDUAL RETIREMENT ACCOUNTS IT MARKETED IN THE EARLY 1980S WE ALLEGE THAT DEPOSITORS WERE PROMISED THERE WOULD BE NO FEES AND THAT THE INTEREST RATE ON THEIR INVESTMENTS WOULD NEVER DROP BELOW 10 PERCENT SAID THE STATE'S ATTORNEY GENERAL ERNIE PREATE JR BY IMPOSING THESE ALLEGEDLY ILLEGAL FEES THE BANK HAS CUT THE EFFECTIVE ANNUAL INTEREST RATE BELOW 10 PERCENT THE SUIT FILED IN PENNSYLVANIA'S COMMONWEALTH COURT ASKS THAT THE BANK BE ORDERED TO REFUND THE FEES PAID BY CONSUMERS AND TO PAY CIVIL PENALTIES TO THE STATE MR PREATE SAID THAT IN 1982 AND 1983 DAUPHIN DEPOSIT BANK & TRUST OFFERED AN 18MONTH VARIABLERATE IRA AND TOLD CONSUMERS DIRECTLY AND IN WRITING THAT THERE WOULD NEVER BE ANY FEES WITH THE PROGRAM ABOUT 5000 CONSUMERS MADE DEPOSITS IN THE IRA ACCOUNT ACCORDING TO THE SUIT LAST DECEMBER DAUPHIN DEPOSIT BANK & TRUST NOTIFIED DEPOSITORS THAT IT WOULD BEGIN CHARGING A 05 PERCENT FEE ON 1200 OF THOSE ACCOUNTS THAT HAD BALANCES OF 35000 OR MORE IN ADDITION THE BANK IMPOSED A 3 FEE ON ROLLOVERS OR TRANSFERS INTO THE IRAS THE SUIT CHARGES THE BANK WITH VIOLATING PENNSYLVANIA'S UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW A SPOKESWOMAN FOR DAUPHIN DEPOSIT CORP SAID SHE HAD NOT YET SEEN THE SUIT AND THEREFORE COULD NOT COMMENT ON IT 9311110095 931111 JUST FIND A GOLF BALL IN THE LAKE PROVE IT IS YOURS AND IT IS YOURS BY TAMSIN CARLISLE STAFF REPORTER OF THE WALL STREET JOURNAL VANCOUVER BRITISH COLUMBIA GOLF BALLS DRIVEN INTO THE LAKE MAY NOT BE LOST FOREVER THEY STILL BELONG TO THEIR ORIGINAL OWNERS A CANADIAN JUDGE HAS RULED BRITISH COLUMBIA PROVINCIALCOURT JUDGE BRIAN DAVIS RECENTLY ACQUITTED A TEENAGER OF STEALING GOLF BALLS FROM A VANCOUVERAREA GOLF COURSE EVEN THOUGH POLICE CAUGHT THE YOUNG MAN AT NIGHT NEAR THE COURSE'S MANMADE LAKE WEARING A WET SUIT AND TOTING A BUCKET OF BALLS THE JUDGE RULED THAT THE NEOPRENECLAD YOUTH WASN'T STEALING FROM THE GOLF COURSE BECAUSE ONLY ONE OF THE RECOVERED BALLS WAS ACTUALLY THE COURSE'S PROPERTY THE REST STILL BELONGED TO THE GOLFERS WHO HAD LOST THEM HE SAID THE LAD APPARENTLY WAS ONLY FOLLOWING COURSE PRECEDENT IN TRYING TO RECOVER SUNKEN BALLS AND IT SEEMS THAT THE COURT'S RULING COULD AFFECT WHAT HAS BEEN A SIGNIFICANT REVENUE STREAM FOR COURSE OWNER MAYFAIR LAKES MANAGEMENT CORP IN HIS WRITTEN REASONS FOR JUDGMENT JUDGE DAVIS CITED TESTIMONY THAT MAYFAIR HAS A CONTRACT WITH A COMMERCIAL SCUBA DIVING COMPANY THAT COMES ON A REGULAR BASIS TO RECOVER THE BALLS ACCORDING TO THIS TESTIMONY THE DIVING COMPANY ALSO WASHES CLEANS AND SORTS THE BALLS BEFORE HANDING THEM OVER TO MAYFAIR WHICH THEN RESELLS THE BALLS TO ITS CLIENTS THE ORIGINAL OWNERS OF THE BALLS THROUGH THE GOLF COURSE'S PRO SHOP DAVID TARNOW A VANCOUVER LAWYER WHO REPRESENTED THE DEFENDANT SAYS ONE OF MAYFAIR'S OWNERS TESTIFIED AT THE TRIAL THAT THE RECLAMATION OF BETWEEN 18000 AND 22000 GOLF BALLS A YEAR FROM LAKE BOTTOMS AND THEIR SUBSEQUENT RESALE IS WORTH ABOUT 25000 CANADIAN DOLLARS US19137 TO MAYFAIR THE LAWYER SAYS GOLFERS SHOULD REALIZE THAT EVEN IF THEY HAVE THE UNFORTUNATE EXPERIENCE OF SHANKING ONE INTO A LAKE THEY STILL HAVE A RIGHT TO LATER RECLAIM IT A MAYFAIR OWNER ALLEN MAY SAYS HE ISN'T WORRIED THAT THE RULING WILL HURT REVENUE BUT HE ADDS THAT THE COURSE MAY NOW ATTACH A RIDER TO ITS GREENS FEES REQUIRING GOLFERS TO AGREE TO TRANSFER OWNERSHIP OF LOST BALLS TO THE COMPANY AND HE CONCEDES I SUPPOSE IF A PERSON IS USING CUSTOMENGRAVED BALLS WITH HIS NAME ON THEM I WOULD UNDERSTAND FROM THIS RULING THAT THOSE BALLS BELONG TO HIM OF PROBABLY SMALL CONSOLATION TO MAYFAIR THE JUDGE ORDERED THAT ONE BALL WITH A RED STRIPE MARKING IT AS A RANGE BALL SHOULD BE RETURNED TO THE GOLF COURSE 9311110094 931111 GOODRICH TO ACQUIRE AIRCRAFTPARTS UNIT FROM EMERSON ELECTRIC FOR 300 MILLION BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL BF GOODRICH CO AGREED TO PAY 300 MILLION FOR EMERSON ELECTRIC CO'S AEROSPACESENSOR OPERATIONS AS THE SPECIALTYCHEMICAL MAKER CONTINUED ITS STRATEGIC PUSH INTO THE AIRCRAFTPARTS BUSINESS GOODRICH CALLED THE PROSPECTIVE PURCHASE ITS BIGGESTEVER ACQUISITION AND A SIGNIFICANT STEP IN OUR PLANNED GROWTH AS A DEVELOPER AND INTEGRATOR OF AIRCRAFT SYSTEMS GOODRICH IN AKRON OHIO IS FUNDING THE AEROSPACE EXPANSION TO THE TUNE OF HALFABILLION DOLLARS IN THE LATTER HALF OF THIS YEAR WITH MONEY RECEIVED FROM SHEDDING ITS VINYLPLASTICS BUSINESSS THE POLYVINYLCHLORIDE BUSINESS WITH 1992 REVENUE OF ABOUT 900 MILLION WAS GOODRICH'S BIGGEST BUSINESS IN TERMS OF SALES BUT SUFFERED BIG LOSSES IN RECENT YEARS BECAUSE OF WEAK PRICES IN THE CYCLICALLY DEPRESSED INDUSTRY GOODRICH'S MAKEOVER STRATEGY WHICH INVOLVES EXITING FROM A PVC INDUSTRY THAT'S IN THE EARLY STAGES OF A REBOUND AND SIMULTANEOUSLY BOOSTING THE COMPANY'S EXPOSURE IN AN AEROSPACE FIELD THAT'S BADLY HURT BY DEFENSEINDUSTRY CUTBACKS AND THE AIRLINES' FINANCIAL DIFFICULTIES HAS RAISED CONCERN AMONG SOME INVESTORS IN APRIL GOODRICH SOLD A HALFINTEREST IN ITS GEON PVC UNIT THROUGH AN INITIAL OFFERING THAT PROVIDED PROCEEDS OF ABOUT 220 MILLION IT ALSO RECEIVED A TAXFREE DISTRIBUTION FROM THE FORMER UNIT OF 160 MILLION THAT SALE WAS FOLLOWED IN JUNE BY GOODRICH'S 200 MILLION PURCHASE OF ABEX INC'S CLEVELAND PNEUMATIC AIRCRAFTLANDINGGEAR OPERATIONS LATE LAST MONTH GOODRICH DISCLOSED PLANS TO SELL ITS REMAINING GEON STAKE IN AN OFFERING EXPECTED TO OCCUR BEFORE YEAR END AT GEON CO'S CURRENT STOCK PRICE SUCH A SALE WOULD PROVIDE ABOUT 283 MILLION THE ROSEMOUNT AEROSPACE BUSINESS THAT GOODRICH IS ACQUIRING IN BURNSVILLE MINN HAS ABOUT 1200 EMPLOYEES IT MAKES SENSORS THAT DETECT AND RESPOND TO CHANGES IN SUCH THINGS AS TEMPERATURE AND PRESSURE THE UNIT'S ANNUAL SALES ARE ABOUT 130 MILLION OUT OF 817 BILLION IN OVERALL 1993 REVENUE FOR ITS PARENT IN ST LOUIS WALL STREET WAS UNPERTURBED BY YESTERDAY'S NEWS IN LATE NEW YORK STOCK EXCHANGE TRADING GOODRICH SHARES ROSE 25 CENTS TO 44125 A SHARE AND EMERSON SHARES ROSE 75 CENTS TO 57 A SHARE 9311110093 931111 HEARD ON THE STREET ANALYSTS DEBATE WHEN HOW THE BULL MARKET WILL END BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TOMORROW THE BULL MARKET THAT BEGAN AMID THE MISSILE ATTACKS OF THE PERSIAN GULF WAR WILL BECOME THE LONGEST STOCKPRICE UPTURN OF THIS CENTURY UNINTERRUPTED BY A DROP OF 10 OR MORE THE QUESTION ON NEARLY ALL INVESTORS' MINDS IS WHEN WILL IT END MANY PEOPLE THINK STOCKS WILL DECLINE NEXT YEAR BUT OPTIMISTS EXPECT THE BULL TO TROT INTO 1995 OR BEYOND THE ACCOMPANYING TABLE SHOWS 10 EXPERTS' OPINIONS ON WHEN THE NEXT DECLINE WILL COME HOW DEEP IT WILL GO AND WHAT MIGHT TRIGGER IT THE ECONOMY SEEMS TO BE GATHERING STEAM AT LAST BUT HISTORY SHOWS THAT RISING CORPORATE PROFITS ARE NO GUARANTEE OF RISING STOCK PRICES NED DAVIS RESEARCH STUDIED ALL DECLINES OF 15 OR MORE IN THE INDUSTRIAL AVERAGE SINCE WORLD WAR II THERE WERE 16 SUCH DECLINES WHICH COINCIDENTALLY OCCURRED DURING 16 CALENDAR YEARS IN 11 OF THOSE 16 YEARS CORPORATE PROFITS WERE RISING INVESTORS COME IN LIKE LEMMINGS WHEN THERE ARE HIGH EARNINGS SAYS JOSEPH GRANVILLE THE KANSAS CITY MO STOCKMARKET PUNDIT KNOWN FOR HIS DRAMATIC PRONOUNCEMENTS THEY SHOULD BE BUYING WHEN THERE ARE NO EARNINGS IF ROBUST CORPORATE PROFITS DON'T GUARANTEE A STOCKMARKET ADVANCE WHAT DOES WELL FALLING INTEREST RATES COME PRETTY CLOSE NED DAVIS RESEARCH CHECKED THE 10YEAR BOND YIELD DURING 11 MAJOR STOCKMARKET DECLINES SINCE 1966 ONLY ONCE DID THE MARKET BITE THE DUST WHILE YIELDS WERE FALLING DURING THE OTHER 10 STOCK SWOONS 10YEAR YIELDS WERE RISING TODAY RATES ARE LOW AT LEAST BY THE STANDARDS OF THE PAST 20 YEARS BUT IN THE PAST FEW WEEKS THEY HAVE INCHED UP FRIGHTENING INVESTORS IT'S NOT CLEAR YET WHETHER THE RATE UPTICK WAS A MERE BLIP OR THE START OF AN UNPLEASANT TREND RISK OF A DOWNTURN IS HEIGHTENED BY TODAY'S BACKDROP OF HIGH STOCK VALUATIONS THE INDUSTRIAL AVERAGE IS AT LOFTY RATIOS OF 32 TIMES REPORTED EARNINGS 32 TIMES BOOK VALUE ASSETS MINUS LIABILITIES AND 35 TIMES DIVIDENDS SUCH VALUATIONS PREVAILED AT CLASSIC MARKET TOPS SUCH AS 1929 1962 AND 1987 HERE'S WHAT 10 EXPERIENCED INVESTORS AND MARKET WATCHERS THINK ABOUT THE POSSIBILITY OF A MEANINGFUL DOWNTURN IN THE STOCK MARKET WINDOW OF SAFETY INVESTORS WILL BE WRINGING THEIR HANDS THROUGHOUT 1994 BUT STOCKS WILL STAY ALOFT UNTIL 1995 SAYS BRIAN L BEAULIEU EXECUTIVE DIRECTOR OF THE INSTITUTE FOR TREND RESEARCH IN CONTOOCOOK NH HE SAYS INTEREST RATES WILL BEGIN RISING IN 1994 BUT THERE'S A THREE TO FIVEQUARTER WINDOW BEFORE THE STOCK MARKET BEGINS TO SAG REMEMBER 1962 NED DAVIS PRESIDENT OF NED DAVIS RESEARCH SAYS TODAY'S STOCK MARKET REMINDS HIM OF 1962 A YEAR STOCKS DROPPED SEVERELY THAT YEAR PRESIDENT KENNEDY TANGLED WITH THE STEEL COMPANIES TODAY PRESIDENT CLINTON IS TANGLING WITH HEALTHCARE PROVIDERS AND INSURERS AS IN 1962 STOCK VALUATIONS ARE UNUSUALLY HIGH MR DAVIS PREDICTS THAT STOCKS WILL BEGIN FALLING BY THE END OF JANUARY AND WON'T STOP UNTIL THE DOW INDUSTRIALS ARE BACK IN THE NORMAL RANGE OF ABOUT 23 TIMES DIVIDENDS WHICH WORKS OUT TO AN INDUSTRIAL AVERAGE OF ABOUT 2507 STOCKS ARE CURRENTLY SELLING FOR ABOUT 32 TIMES HIS FORECAST OF DIVIDENDS FOR 1994 BLOWOUT IN IPOS WE'LL PROBABLY HAVE AN OLDFASHIONED BLOWOUT IN THE INITIAL PUBLIC OFFERING MARKET SAYS DAVID DREMAN MANAGING PARTNER AT DREMAN VALUE MANAGEMENT IN JERSEY CITY NJ HE SAYS MANY RECENT ISSUES ARE AS BAD AS OR WORSE THAN I'VE EVER SEEN HE EXPECTS SOME OVERHEATED STOCKS SUCH AS ICEDTEA MAKER SNAPPLE BEVERAGE OR COFFEE VENDOR STARBUCKS TO PLUNGE SETTING OFF A GENERAL MARKET DECLINE OF 10 OR SO WHEN IT COULD HAPPEN ANY TIME CERTAINLY WITHIN SIX MONTHS TO A YEAR HE SAYS MILES TO GO ROGER ENGEMANN FOUNDER OF ROGER ENGEMANN & ASSOCIATES AND MANAGER OF PASADENA GROWTH FUND SAYS THE SLOWPACED ECONOMIC RECOVERY SHOULD CRAWL ON FOR YEARS STOCK DOWNTURNS OF ANY SIZE USUALLY HAPPEN ONLY AT THE PEAK OF THE BUSINESS CYCLE HE SAYS AND THAT WON'T COME UNTIL 1997 OR SO EVERYBODY'S DEBATING WHETHER THE ECONOMY IS GETTING GOING NOT WHETHER THIS IS THE PEAK WATCH THOSE RATES STOCKS ARE IN LITTLE DANGER UNTIL TREASURY BILLS YIELD A FULL PERCENTAGE POINT MORE THAN STOCK DIVIDENDS SAYS ELAINE GARZARELLI OF LEHMAN BROTHERS SHE FIGURES THE RED LINE MIGHT BE CROSSED WHEN THREEMONTH TREASURYBILL RATES HIT 4 THEY CURRENTLY ARE AT 317 WHILE THE STANDARD & POOR'S 500 STOCKS YIELD ABOUT 27 SHE DOESN'T EXPECT THAT TO HAPPEN UNTIL LATE 1994 AT THE EARLIEST IT WOULD REQUIRE A COUPLE OF FED FEDERAL RESERVE BOARD TIGHTENINGS SHE SAYS SHE NOTES THAT WAYNE ANGELL A PROPONENT OF TIGHT MONEY RECENTLY LEFT THE FED TECHNICAL TROUBLE THE STOCK MARKET'S TECHNICAL INDICATORS ARE EXTREMELY WEAK DECLARES MR GRANVILLE THE NEWSLETTER PUNDIT THE ADVANCEDECLINE LINE A RUNNING COUNT OF ADVANCING STOCKS MINUS DECLINING ONES PEAKED IN AUGUST HE SAYS AND THE NUMBER OF NEW LOWS RECENTLY EXCEEDED THE NUMBER OF NEW HIGHS THESE AND OTHER INDICATORS HE SAYS REMIND HIM OF SUMMER 1990 WHEN THE MOST RECENT BEAR MARKET BEGAN HE PREDICTS THE INDUSTRIAL AVERAGE WILL SLIDE TO ABOUT 2900 BY SPRING TAX ALBATROSS TAX INCREASES WILL SLOW THE ECONOMY IN THE 1994 FIRST HALF SAYS TERENCE J MCLAUGHLIN A MANAGING DIRECTOR AT ASHLAND MANAGEMENT INVENTORIES ARE ALREADY BUILDING UP A BIT AND CYCLICAL STOCKS IN 1994 WILL BE UP AGAINST TOUGHER EARNINGS COMPARISONS THAN THEY WERE THIS YEAR ALL IN ALL HE SAYS A SLOWING ECONOMY WILL CAUSE STOCKS TO SELL OFF 5 TO 10 IN THE FIRST HALF OF NEXT YEAR HE THINKS GROWTH STOCKS ARE THE BEST REFUGE AGING BULL VICTOR SPERANDEO PRESIDENT OF RAND MANAGEMENT IN SHORT HILLS NJ SAYS THE CURRENT UPTREND IS UNUSUALLY LONG AND LIKELY TO END SOON HE ENVISIONS A 10 TO 15 DOWNTURN BETWEEN NOW AND THE END OF JANUARY HE THINKS THE FED WILL RAISE SHORTTERM INTEREST RATES SOON TO DEMONSTRATE ITS TOUGHNESS AGAINST INFLATION AND TO AVOID HAVING TO RAISE RATES NEAR AN ELECTION THAT MOVE HE SAYS WILL LEAVE INVESTORS SITTING THERE WITH THEIR MOUTHS OPEN SPARKING A CORRECTION THAT IS FAST QUICK AND HARSH BUT SHORTLIVED MILITARY ADVENTURE I THINK THE MARKET IS DUE FOR A CORRECTION ANY DAY NOW SAYS ROBERT STOVALL OF STOVALL TWENTYFIRST ADVISERS THE TRIGGER FOR A DOWNTURN IS USUALLY AN UNEXPECTED EVENT HE SAYS ONE POSSIBLE SURPRISE AS SOON AS THE RIVERS FREEZE IN THE KOREAN PENINSULA YOU COULD SEE A MILITARY ADVENTURE WITH THE NORTH KOREANS MOVING INTO SOUTH KOREA THEY HAVE A LOT OF ARMOR AND THE REGIME IS AN ECONOMIC FAILURE FOR DICTATORS TO MAINTAIN THEMSELVES THEY FREQUENTLY START MILITARY ACTIONS BUT HE EXPECTS ONLY A MODERATE DECLINE 7 OR SO HIGHER FIRST A DOWNTURN WILL OCCUR LATER ON AND FROM HIGHER LEVELS SAYS BYRON WIEN US EQUITY STRATEGIST AT MORGAN STANLEY VALUATIONS ARE NOT UNREASONABLE NOW WHEN THE MARKET GETS CLOSER TO 4000 ON THE INDUSTRIAL AVERAGE OR 500 ON THE S&P 500 I THINK THE MARKET WILL BE MORE STRETCHED HE EXPECTS A DECLINE SOMETIME THIS WINTER WHEN THE MARKET FINALLY DIVES THERE WILL BE NO SHORTAGE OF EXPLANATIONS MR WIEN SAYS COMMENTATORS MAY POINT TO BOSNIA HAITI SOMALIA OR PROBLEMS WITH THE NORTH AMERICAN FREE TRADE AGREEMENT BUT IN ESSENCE IT WILL FALL BECAUSE IT WILL BE STRETCHED EVERYBODY WHO COULD BUY WILL ALREADY BE IN KIDDER'S DILEMMA SHOULD IT PULL ITS BUY RECOMMENDATION ON BOSTON CHICKEN BEFORE TRADING BEGAN TUESDAY KIDDER PEABODY ISSUED A STRONG BUY RATING ON THE NEWLY PUBLIC RESTAURANT CHAIN BUT BOSTON CHICKEN PROMPTLY SKYROCKETED TO 48 1/2 FROM ITS INITIAL PRICE OF 20 SHATTERING KIDDER'S 12MONTH TARGET OF 45 IN A DAY NOW IF ANY STOCK DESERVES A HOLD OR SELL OPINION BOSTON CHICKEN MIGHT SEEM TO QUALIFY BUT KIDDER ANALYST STACY DUTTON SAYS THERE'S NO REASON TO CHANGE HER RATING JUST YET I THINK IT'S PROBABLY PRUDENT TO WAIT AND WATCH THE STOCK ACTION SHE SAID YESTERDAY AFTER BOSTON CHICKEN EASED 2 TO 46 1/2 MS DUTTON CALLS THE STOCK REASONABLY VALUED NOW EVEN AT 93 TIMES ESTIMATED 1994 EARNINGS SHE CONCEDES I WOULDN'T NECESSARILY BUY IT RIGHT HERE BUT ONCE THE EXCITEMENT CALMS DOWN BOSTON CHICKEN COULD BECOME A GOOD GROWTH STOCK OVER THE YEARS THE ANALYST SAYS PEOPLE SHOULD KEEP IT ON THEIR RADAR SCREEN 9311110092 931111 MARKETING BRIEF HERITAGE MEDIA CORP CHARGE TOTALING 3 MILLION TO BE POSTED FOR 4TH PERIOD HERITAGE MEDIA CORP SAID IT WILL RECORD A ONETIME 3 MILLION RESTRUCTURING CHARGE IN THE FOURTH QUARTER TO REFLECT THE COSTS OF CLOSING A TAPEMACHINE SERVICE CENTER AND THE WRITEOFF OF CERTAIN OBSOLETE DELIVERY EQUIPMENT IN THE YEARAGO FOURTH QUARTER HERITAGE REPORTED NET INCOME OF 64 MILLION OR 29 CENTS A SHARE ON REVENUE OF 878 MILLION THE OWNER OF RADIO AND TELEVISION STATIONS IN DALLAS SAID THE CHARGE WAS BEING RECORDED IN CONNECTION WITH A RESTRUCTURING OF THE INSTORE RADIO NETWORK OF ITS POP RADIO CORP UNIT WHICH RECENTLY AGREED TO BECOME THE EXCLUSIVE ADVERTISING AGENT FOR THE THREE LARGEST INSTORE SATELLITE MUSIC PROVIDERS MUZAK LP SEATTLE BROADCAST INTERNATIONAL INC MIDVALE UTAH AND AEI SEATTLE POP HAD PREVIOUSLY BEEN AFFILIATED ONLY WITH MUZAK HERITAGE SAID HERITAGE SAID THE NEW ALLIANCES WILL ADD NEARLY 9000 STORES TO THE POP RADIO NETWORK EXTENDING ITS TOTAL NETWORK TO MORE THAN 24000 LOCATIONS 9311110091 931111 BUSINESS BRIEF ADOLPH COORS CO COORS BREWING UNIT PARES WHITECOLLAR STAFF BY 643 COORS BREWING CO SAID 643 WHITECOLLAR EMPLOYEES ELECTED TO TAKE AN EARLYRETIREMENT OR A VOLUNTARYSEVERANCE PACKAGE OFFERED BY THE COMPANY IN AN EFFORT TO CUT ITS OVERHEAD EXPENSES THE GOLDEN COLO COMPANY A UNIT OF ADOLPH COORS CO OFFERED THE PACKAGES IN AN ATTEMPT TO ELIMINATE AT LEAST 500 JOBS OUT OF ITS 2500 WHITECOLLAR JOBS AMONG THOSE TAKING EARLY RETIREMENT ARE RICHARD ZILLMANN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER GERRY KAVENY EXECUTIVE VICE PRESIDENT ADMINISTRATION AND FINANCE AND GEORGE HEARD VICE PRESIDENT ENGINEERING AND CONSTRUCTION ADOLPH COORS SAID IT WILL TAKE A FOURTHQUARTER CHARGE FOR ITS COSTCUTTING EFFORTS INCLUDING 65 MILLION TO 75 MILLION IN PRETAX CHARGES FOR THE EMPLOYMENT REDUCTION ON THE NASDAQ STOCK MARKET ADOLPH COORS SHARES CLOSED AT 1725 DOWN 50 CENTS 9311110090 931111 TECHNOLOGY & HEALTH BELLSOUTH TO TAKE PRETAX CHARGE OF 12 BILLION CUT 2200 WORKERS BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL BELLSOUTH CORP PLANS TO TAKE A FOURTHQUARTER PRETAX CHARGE OF 12 BILLION TO UPGRADE TELEPHONE OPERATIONS AND PARE AN ADDITIONAL 2200 EMPLOYEES PRODUCING ITS FIRSTEVER QUARTERLY LOSS BELLSOUTH A REGIONAL PHONE COMPANY BASED IN ATLANTA HAS BEEN IN INTENSIVE TALKS TO INVEST UP TO 15 BILLION IN QVC NETWORK INC AND JOIN THE EFFORT TO ACQUIRE PARAMOUNT COMMUNICATIONS INC THE CHARGE WHICH WILL AMOUNT TO 760 MILLION OR 153 A SHARE AFTER TAXES WILL RESULT IN A NET LOSS OF 60 CENTS A SHARE IN THE QUARTER ESTIMATES ANALYST JACK GRUBMAN OF PAINEWEBBER INC IN THE 1992 FOURTH QUARTER BELLSOUTH HAD NET INCOME OF 3534 MILLION OR 72 CENTS A SHARE THE REMAINING 310 MILLION WILL GO TOWARD CONSOLIDATING FIELD OFFICES TO JUST 80 FROM 270 OUTLETS AND TO CLOSE 22 OF THE COMPANY'S 28 DATA MANAGEMENT CENTERS ALL BY THE END OF 1996 BELLSOUTH SHARES FELL 1125 YESTERDAY TO 57125 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THAT DECLINE HOWEVER MAY BE DUE AS MUCH TO BELLSOUTH'S POSSIBLE INVOLVEMENT IN THE PARAMOUNT FIGHT AS TO YESTERDAY'S BIG CHARGE PAINEWEBBER'S MR GRUBMAN SAID BELLSOUTH'S ELEVENTHHOUR ATTEMPT TO AID QVC'S HOSTILE BID FOR PARAMOUNT MAKES UTTERLY NO SENSE HE PREDICTS ANY INVOLVEMENT BY BELLSOUTH IS LIKELY TO BE PASSIVE IN NATURE WHICH WOULDN'T BODE WELL FOR SHAREHOLDERS PASSIVE INVESTMENTS WITHOUT CONTROL NEVER CREATE VALUE FOR THE SHAREHOLDERS MR GRUBMAN ARGUED WALL STREET APPARENTLY AGREES OVER THE PAST WEEK BELLSOUTH STOCK HAS LOST 10 OF ITS VALUE FALLING EACH DAY FROM A CLOSE OF 6350 LAST TUESDAY AS A PROCESSION OF HEADLINES ANNOUNCED ITS INTEREST IN QVC IN TAKING THE 12 BILLION CHARGE BELLSOUTH IS FOLLOWING OTHER BABY BELLS MOST RECENTLY U S WEST INC WHICH IN SEPTEMBER ANNOUNCED A THIRDQUARTER CHARGE OF 38 BILLION AND THE LAYOFF OF 9000 EMPLOYEES TO ACCELERATE ITS EFFORTS TO ADOPT NEW TECHNOLOGY STEVEN YANIS OF KIDDER PEABODY & CO SAID BELLSOUTH HAS LAGGED BEHIND THE OTHER BELL COMPANIES IN WEEDING OUT COSTS AND PHASING OUT ADDITIONAL PEOPLE THIS WRITEDOWN WAS A NECESSARY THING TO BE MORE COMPETITIVE HE SAID 9311110089 931111 CHRYSLER PLANS NEON A RIGHTHANDDRIVE FOR UK AND JAPAN BELVIDERE ILL CHRYSLER CORP SAID IT PLANS TO BUILD A RIGHTHANDDRIVE VERSION OF ITS COMING NEON SMALL CAR FOR EXPORT PRIMARILY TO THE UK WITH SOME SALES IN JAPAN SPEAKING BEFORE THE ROLLOUT OF THE FIRST NEON AT AN ASSEMBLY PLANT HERE CHRYSLER CHAIRMAN ROBERT J EATON SAID THAT NO SPECIFIC TIMETABLE FOR THE RIGHTHAND DRIVE CAR HAS BEEN SET THE RIGHTHAND DRIVE NEON IS PART OF CHRYSLER'S AGGRESSIVE STRATEGY TO EXPAND ITS OVERSEAS SALES CHRYSLER IS ALREADY EXPORTING A RIGHTHANDDRIVE VERSION OF ITS JEEP CHEROKEE AND THE AUTO MAKER RECENTLY ANNOUNCED IT WOULD BEGIN BUILDING A RIGHTHANDDRIVE GRAND CHEROKEE IN AUSTRIA IN PARTICULAR CHRYSLER HAS BEEN PUSHING THE NEON AS A STRONG CANDIDATE FOR OVERSEAS SALES CHRYSLER FIRST SHOWED THE CAR IN SEPTEMBER AT THE FRANKFURT AUTO SHOW CHRYSLER PLANS TO BEGIN SELLING A LEFTHANDDRIVE VERSION OF THE NEON IN EUROPE NEXT SPRING JUST A FEW MONTHS AFTER ITS JAN 1 INTRODUCTION IN THE US WHILE BRITAIN IS A RIGHTHANDDRIVE MARKET THE REST OF EUROPE IS LEFTHANDDRIVE LIKE THE US SEPARATELY IN AN EFFORT TO TAP INTO THE ASIAN MARKET CHRYSLER IS DISCUSSING WITH THE CHINESE GOVERNMENT THE POSSIBILITY OF BUILDING MINIVANS IN CHINA CHRYSLER IS ONE OF SEVERAL AUTO MAKERS NOW COMPETING FOR WHAT CHRYSLER EXECUTIVES DESCRIBE AS A LARGE CONTRACT TO BUILD LIGHT VEHICLES IN THAT COUNTRY THE PROPOSED CHINESE VENTURE WOULD BE SEPARATE FROM CHRYSLER'S LONGTIME BEIJING JEEP ASSEMBLY OPERATION 9311110088 931111 BUSINESS BRIEF CHICAGO AND NORTH WESTERN RAILROAD TO BUY LOCOMOTIVES FROM GE FOR 953 MILLION CHICAGO AND NORTH WESTERN TRANSPORTATION CO SAID IT REACHED AN AGREEMENT WITH GE TRANSPORTATION SYSTEMS TO PURCHASE 65 NEW LOCOMOTIVES FOR 953 MILLION THE CHICAGOBASED RAILROAD FREIGHT HAULER A UNIT OF CHICAGO & NORTH WESTERN HOLDINGS CORP SAID THIS IS THE FIRST ORDER OF THE NEW DASH 944CW MODEL TO BE PRODUCED BY GE THE 4400HORSEPOWER UNITS WILL BE USED PRIMARILY IN THE RAILROAD'S WESTERN COAL SERVICE CNW SAID 35 OF THE ENGINES WILL BE DELIVERED IN THE FOURTH QUARTER OF 1993 AND AN ADDITIONAL 30 IN JANUARY 9311110087 931111 BLACK'S FUND HOLDS BIG STAKE IN BONDS SECURED BY O&Y BUILDINGS IN NEW YORK BY MITCHELL PACELLE AND LARRY M GREENBERG STAFF REPORTERS OF THE WALL STREET JOURNAL AN INVESTMENT FUND RUN BY LEON BLACK HAS BOUGHT NEARLY ONETHIRD OF THE MORTGAGE BONDS SECURED BY THREE NEW YORK OFFICE BUILDINGS OWNED BY OLYMPIA & YORK COS USA INCLUDING ITS HEADQUARTERS IN A BID TO PROFIT ON THE COMPANY'S RESTRUCTURING IT'S UNCLEAR WHETHER MR BLACK WHO FORMED APOLLO REAL ESTATE INVESTMENTS THIS YEAR TO INVEST IN DISTRESSED REAL ESTATE WILL ATTEMPT TO GAIN FULL OWNERSHIP OF THE BUILDINGS OR INTENDS TO MERELY RESELL THE BONDS AFTER A DEBT RESTRUCTURING THE APOLLO FUND PURCHASED THE BONDS FOR ROUGHLY 55 OF FACE VALUE OR ABOUT 160 MILLION FROM UNSPECIFIED SELLERS ACCORDING TO PEOPLE FAMILIAR WITH THE DEAL THE US SUBSIDIARY OF TORONTOBASED OLYMPIA & YORK DEVELOPMENTS LTD IS CURRENTLY MEETING PAYMENTS ON THE BONDS BUT IS ATTEMPTING TO RENEGOTIATE THE TERMS AS PART OF AN EFFORT TO RESTRUCTURE ABOUT 5 BILLION OF DEBT WITHOUT RESORTING TO A BANKRUPTCYLAW FILING ITS PARENT COMPANY EMERGED FROM CANADIAN BANKRUPTCYCOURT PROTECTION EARLIER THIS YEAR SUCH RESTRUCTURINGS OFTEN ATTRACT VULTURE INVESTORS SUCH AS MR BLACK THE FORMER HEAD OF MERGERS AND ACQUISTIONS AT DREXEL BURNHAM LAMBERT INC WHO BUY DISTRESSED SECURITIES ON A BET THAT THEY WILL BE WORTH MORE AFTER THEIR TERMS ARE RENEGOTIATED BOND PLAYS ON REALESTATE ASSETS ARE EXPECTED TO BECOME MORE COMMON AS MORE OF THE BONDS ISSUED IN THE 1980S MATURE THE APOLLO FUND NOW OWNS OR CONTROLS ROUGHLY 300 MILLION OF THE 970 MILLION OF MORTGAGE BONDS ON THE PROPERTIES IN WHICH AN AFFILIATE OF CHICAGOBASED JMB REALTY CORP OWNS A MINORITY INTEREST ACCORDING TO SEVERAL PEOPLE FAMILIAR WITH THE RESTRUCTURING TALKS AN APOLLO SPOKESMAN SAID THE FIRM WOULD NOT COMMENT ON ANY PENDING DEALS AN O&Y SPOKESMAN SAID APOLLO REPRESENTATIVES HAVE MET WITH THE COMPANY ABOUT RESTRUCTURING THE DEBT O&Y IS LOOKING FORWARD TO CONTINUED DIALOGUE WITH APOLLO HOPEFULLY TO ARRIVE AT A CONSENSUAL RESTRUCTURING OF THOSE OBLIGATIONS THE SPOKESMAN SAID HOWEVER ONE INDIVIDUAL FAMILILAR WITH APOLLO'S PLANS SAID THEY'RE INTERESTED IN MORE THAN JUST A BOND PLAY THEY'RE HEADING FOR CONTROL THE O&Y BONDS ARE SECURED BY A SINGLE MORTGAGE ON TWO MIDTOWN MANHATTAN BUILDINGS 237 PARK AVE ITS US HEADQUARTERS AND 1290 AVENUE OF THE AMERICAS AND ON A MOSTLY VACANT BUILDING IN DOWNTOWN MANHATTAN 2 BROADWAY THE TWO MIDTOWN BUILDINGS ARE WELL LEASED BUT ABOUT 75 OF THE SPACE IN THE DOWNTOWN BUILDING IS CURRENTLY AVAILABLE AND MORE IS EXPECTED TO BE VACATED BY NEXT YEAR IN A SEPARATE DEVELOPMENT O&Y AGREED LAST WEEK TO TRANSFER A 36STORY DALLAS PROPERTY AT 1999 BRYAN ST TO THE BUILDING'S MAIN CREDITOR SWISS BANK CORP IN EXCHANGE FOR RELEASING IT FROM A ROUGHLY 85 MILLION DEBT THE SPOKESMAN SAID 9311110086 931111 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG IF YOU WORK WITH A COMPUTER ONE OF THE MOST IMPORTANT FACTORS IN YOUR OVERALL SATISFACTION WITH THE MACHINE CAN BE THE USER INTERFACE THE MAIN SCREEN YOU USE TO CALL UP DIFFERENT PROGRAMS AND OPEN FREQUENTLY USED DOCUMENTS THIS ISN'T CRITICAL IF YOUR COMPANY OR ORGANIZATION EXPECTS YOU TO USE ONLY ONE PROGRAM ALL THE TIME THEN YOUR COMPUTER REALLY IS DEVOTED TO JUST THAT ONE FUNCTION AND YOUR INTERFACE IS WHATEVER SCREEN DESIGN THAT SOLE APPLICATION FEATURES BUT IF YOU'RE USING MICROSOFT'S WINDOWS SOFTWARE ON AN IBMCOMPATIBLE YOU'RE LOOKING AT AN INTERFACE FEATURING SYMBOLS REPRESENTING MANY PROGRAMS AND COMMONLY USED DOCUMENTS AND IT'S IMPORTANT HOW THEY'RE ARRANGED ON THE SCREEN THE INTERFACE MICROSOFT PROVIDES WITH WINDOWS A FEATURE CALLED PROGRAM MANAGER IS HARD TO CUSTOMIZE SO THE CONTENTS OF YOUR COMPUTER ARE ARRANGED AND ORGANIZED IN YOUR PERSONAL STYLE NOW THERE'S A WINDOWS INTERFACE I THINK IS A TRULY INSPIRED DESIGN ONE THAT LETS NONTECHNICAL COMPUTER USERS EASILY ORGANIZE ALL THE PROGRAMS AND DOCUMENTS ON THEIR PCS IN A FASHION THAT MATCHES THE WAY THEY ACTUALLY WORK NOT THE WAY THE COMPUTER WORKS THE PROGRAM IS CALLED TABWORKS AND IT'S ON EVERY NEW COMPAQ COMPUTER MODEL COMPAQ ALSO SELLS IT SEPARATELY AT 49 FOR USE ON ANY BRAND OF COMPUTER YOU OWN CAPABLE OF RUNNING WINDOWS I'VE USED IT ON TWO OTHER BRANDS WITH NO PROBLEM IT WAS DEVELOPED FOR COMPAQ BY XSOFT A DIVISION OF XEROX THE COMPANY THAT INVENTED MANY OF THE ELEMENTS OF TODAY'S STANDARD COMPUTER INTERFACE SUCH AS THE LITTLE PICTURES CALLED ICONS THAT YOU CLICK ON WITH A MOUSE TO LAUNCH PROGRAMS TABWORKS TRANSFORMS THE MAIN SCREEN OF WINDOWS INTO THE FAMILIAR IMAGE OF AN OPEN NOTEBOOK DIVIDED INTO SECTIONS WITH A LABELED TAB PROTRUDING AT THE RIGHTHAND SIDE OF EACH SECTION IT LOOKS LIKE A LOOSELEAF SCHOOL NOTEBOOK OR ONE OF THOSE DAY PLANNERS THAT PEOPLE CARRY AROUND RIGHT DOWN TO A DRAWING OF METAL RINGS TO HOLD THE VIRTUAL PAGES NEAR THE LEFT EDGE OF THE SCREEN THIS TABBEDNOTEBOOK DESIGN IS SO MUCH LIKE REAL LIFE THAT IT'S SHOWING UP IN MORE AND MORE SOFTWARE PROGRAMS ALL THE MAJOR WINDOWS SPREADSHEET PROGRAMS USE IT AS DO PARTS OF IBM'S OS/2 OPERATINGSYSTEM SOFTWARE BUT TABWORKS IS THE ONLY SOFTWARE I'VE SEEN THAT ORGANIZES YOUR WHOLE COMPUTER USING THE NOTEBOOK METAPHOR THE KEY TO THE PROGRAM IS THAT YOU CAN MAKE UP YOUR OWN SECTIONS OF THIS TABWORKS NOTEBOOK LABEL EACH WITH A TAB OF ANY COLOR AND NAME YOU SELECT AND THEN FILL THE BLANK PAGES OF THAT TABBED SECTION WITH ICONS REPRESENTING WHATEVER PROGRAMS OR DOCUMENTS YOU PICK TO VIEW A SECTION OF THE NOTEBOOK YOU JUST CLICK ON ITS PROTRUDING TAB TO BEGIN WORKING WITH A PROGRAM OR DOCUMENT STORED ON A NOTEBOOK PAGE YOU JUST CLICK TWICE ON ITS ICON THERE ARE NO COMMANDS TO REMEMBER NO MULTIPLE WINDOWS OR DIRECTORIES TO DIG THROUGH AND YOU CAN REORGANIZE THE NOTEBOOK AS OFTEN AS YOU LIKE OR EVEN MAINTAIN SEVERAL NOTEBOOKS FOR INSTANCE YOU MIGHT HAVE TABS FOR EACH MONTH OR EACH EMPLOYE OR PROJECT IF THAT'S A LOGICAL WAY TO ORGANIZE YOUR WORK WITHIN EACH TAB YOU COULD HAVE ICONS REPRESENTING THE SAME FEW PROGRAMS YOU USE EACH MONTH PLUS ONE REPRESENTING A PARTICULAR SPREADSHEET OR DATABASE DOCUMENT APPLICABLE TO THAT MONTH OR PROJECT ONLY YOU CAN PLACE THE SAME PROGRAM OR DOCUMENT ICON ALL THROUGH THE TABWORKS NOTEBOOK WITHOUT ACTUALLY HAVING MULTIPLE COPIES OF THE PROGRAM OR DOCUMENT ON YOUR HARD DISK OR YOUR NOTEBOOK MIGHT DIVIDE THE CONTENTS OF YOUR COMPUTER FUNCTIONALLY I HAVE A TAB CALLED COLUMN THAT INCLUDES ICONS OF THE PROGRAMS AND DOCUMENTS I USE TO WRITE THESE ARTICLES I HAVE ANOTHER CALLED COMMUNICATIONS WITH ICONS THAT LAUNCH PROGRAMS THAT CHECK MY ELECTRONIC MAIL OR CONNECT TO THIS NEWSPAPER'S COMPUTER AS YOU ADD TABS EACH OF WHICH CAN HAVE MULTIPLE EASILY TURNED PAGES TABWORKS AUTOMATICALLY CREATES A TABLE OF CONTENTS AND AN INDEX WITH THEIR OWN TABS THESE CAN BOTH LOCATE INDIVIDUAL ITEMS IN YOUR NOTEBOOK OR LAUNCH THEM DIRECTLY FOR ITEMS YOU WANT ON THE SCREEN PERMANENTLY REGARDLESS OF WHICH NOTEBOOK PAGE IS OPEN THERE'S A BUTTON STRIP AT THE FAR LEFT OF THE SCREEN IT ALWAYS REMAINS THE SAME AND ITS ITEMS CAN BE LAUNCHED WITH ONE MOUSE CLICK INSTEAD OF THE USUAL TWO ADDING ITEMS TO A NOTEBOOK IS SIMPLE TABWORKS BEGINS BY CONVERTING THE GROUPS OF ICONS ALREADY SET UP IN PROGRAM MANAGER AFTER THAT YOU CAN JUST SELECT NEW ITEMS FROM A LIST OF WHAT'S ON YOUR HARD DISK OR EVEN DRAG ICONS OF ITEMS ON YOUR HARD DISK FROM FILE LISTS GENERATED BY THE WINDOWS FILE MANAGER PROGRAM DIRECTLY ONTO TABWORKS PAGES THERE ARE A FEW THINGS MISSING IN TABWORKS I'D LIKE IN PARTICULAR TO SEE ICONS REPRESENTING YOUR DISK DRIVES SO YOU COULD QUICKLY GET LISTS OF THEIR CONTENTS WITHOUT RUNNING THE CUMBERSOME FILE MANAGER PROGRAM AND I'D LIKE TO SEE AN ICON FOR YOUR PRINTER THAT WOULD PRINT ANY DOCUMENT WHOSE ICON YOU DRAGGED ONTO IT WITH A MOUSE NORTON DESKTOP HAS BOTH BUT IT LACKS TABWORKS' ORGANIZATIONAL CLARITY STILL TABWORKS IS THE EASIEST CLEAREST MOST LOGICAL INTERFACE I'VE SEEN FOR WINDOWS IF WINDOWS CONFUSES YOU TRY IT 9311110085 931111 WATCHWORDS OF COMPUTER TRADE SHOW MOBILITY MINIATURIZATION MULTIMEDIA BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL THE ANNUAL COMDEX TRADE SHOW IN LAS VEGAS HAS GAINED RENOWN AS THE NATION'S BIGGEST DESKTOPCOMPUTER SHOW BUT MUCH OF THE HOOPLA NEXT WEEK AT THIS YEAR'S SHOW WILL SURROUND TECHNOLOGIES AIMED AT PRYING THE COMPUTER OFF THE DESK TAKING CENTER STAGE WILL BE HANDHELD PERSONAL COMMUNICATORS SUCH AS APPLE COMPUTER INC'S NEWTON AND BELLSOUTH CORP'S SIMON AND A PLETHORA OF WHAT MIGHT BE CALLED SUBNOTEBOOK COMPUTERS THESE HARDBACKNOVELSIZE MACHINES ARE BECOMING SO SMALL THAT THEY EVENTUALLY MAY FUNCTION AS PERSONAL COMMUNICATORS WITH KEYBOARDS COMPANIES WILL ALSO HAWK MYRIAD ACCESSORIES AND SERVICES THAT ALLOW COMPUTERS TO COMMUNICATE OVER WIRELESS NETWORKS MOBILITY IS THE BIG DEAL THIS YEAR SAYS STEWART ALSOP EDITOR IN CHIEF OF THE TRADE JOURNAL INFOWORLD THIS YEAR'S COMDEX WHICH IS EXPECTED TO DRAW A RECORD 170000PLUS ATTENDEES AND 2200 EXHIBITORS WILL ALSO GIVE A NOD TO MULTIMEDIA MANIA IT WILL HAVE COUNTLESS EXHIBITS TOUTING COLORFUL VIDEO SOFTWARESOME BORDERING ON PORNOGRAPHIC RUNNING ON DEVICES THAT READ COMPACT DISKS CALLED CDROMS AND DESKTOP PCS AREN'T FORGOTTEN DISPLAYS OF SOME POWERFUL NEW MODELS WILL REPRESENT THE FIRST VOLLEYS IN A WAR THAT IS EXPECTED TO ERUPT SOON AS INTEL CORP'S EVERFASTER MICROPROCESSORS FACE A POTENTIALLY SERIOUS CHALLENGE FROM A CHIP CALLED THE POWERPC DESIGNED BY INTERNATIONAL BUSINESS MACHINES CORP APPLE COMPUTER AND MOTOROLA INC COMDEX'S PROBLEM IS THAT MANY OF THIS YEAR'S STARS AREN'T READY FOR PRIME TIME MULTIMEDIA OFFERINGS ARE MOSTLY RUDIMENTARY IBM AND APPLE'S MOST PROMISING POWERPC MACHINES WON'T BE OUT UNTIL NEXT YEAR AND THE MARKET FOR PERSONAL COMMUNICATORS WON'T GENERATE BIG SALES FOR ANOTHER COUPLE OF YEARS THE RAPID MOVE AMONG COMPUTER BUYERS TOWARD NOTEBOOK MACHINES IS DRIVING A GREAT RUSH TO CREATE NEW TECHNOLOGIES THAT LET USERS ROAM WITH THEIR MACHINES TAKING HIGH BILLING AT COMDEX WILL BE THE LATEST GENERATION OF SUBNOTEBOOK PCS WHICH WEIGH LESS THAN FIVE POUNDS BUT HAVE MUCH OF THE SAME POWER AND PERFORMANCE AS BULKIER NOTEBOOK PCS PEOPLE JUST WANT MORE MINIATURE COMPUTERS SAYS ALAN ALPER NEWS EDITOR FOR COMPUTERWORLD AN INDUSTRY NEWSPAPER A SUBNOTEBOOK THAT IS EXPECTED TO GET A LOT OF ATTENTION AT THE SHOW IS HEWLETTPACKARD CO'S NEWLY INTRODUCED HP OMNIBOOK 425 A 29POUND PORTABLE EQUIPPED WITH A MICROPROCESSOR BASED ON TEXAS INSTRUMENTS INC'S 486 CHIP AND WITH A SUITE OF MICROSOFT WINDOWS SOFTWARE BUILT IN THE OMNIBOOK PRICED AT 2125 WITH A HARD DISK RUNS ON STANDARD BATTERIES FOR UP TO EIGHT HOURS COMPARED WITH A TYPICAL FOUR HOURS OF LIFE FOR MANY OTHER PORTABLE PCS ANOTHER SUBNOTEBOOK EXPECTED TO GARNER NOTICE TOSHIBA CORP'S NEW PORTEGE T3400CT COMPUTER IS A 486BASED 3999 MACHINE THAT WEIGHS MORE THAN THE OMNIBOOK AT 44 POUNDS BUT HAS THE FIRST COLOR SCREEN ON A SUBNOTEBOOK MAKING THESE COMPACT INFORMATION WAREHOUSES TRULY MOBILE DEMANDS A NEW CLASS OF WIRELESS COMMUNICATIONS ACCESSORIES THAT WILL BE PUT ON DISPLAY AT THE SHOW TECHNOLOGIES ENABLING THE USER OF A PORTABLE PC TO SEND AND RECEIVE DATA WITHOUT EVER HAVING TO SEEK OUT A TELEPHONE MOTOROLA WILL SHOW ITS 249 NEWSCARD DATA RECEIVER A CREDITCARDSIZE DEVICE THAT LETS A PALMTOP COMPUTER RECEIVE WIRELESS COPIES OF SUCH THINGS AS NEWSLETTERS AND ELECTRONIC MAIL PREVIOUSLY SUCH PERSONAL DIGITAL ASSISTANTS HAVE BEEN ABLE ONLY TO RECEIVE BRIEF MESSAGES SUCH AS CALL THE OFFICE SAYS BRAD DAVIS DIRECTOR OF STRATEGIC MARKETING FOR MOTOROLA'S EMBARC COMMUNICATION SERVICES INC UNIT WHICH DEVELOPED THE PRODUCT WIRELESSNETWORK OPERATORS WILL ALSO SHOW UP IN FORCE THIS YEAR BECAUSE OF THE INTEREST IN MOBILE COMPUTING ARDIS A JOINT VENTURE OF IBM AND MOTOROLA AND RAM MOBILE A JOINT VENTURE OF BELLSOUTH AND RAM BROADCASTING WILL PUSH THEIR DATAONLY WIRELESS NETWORKS WHICH NOW BLANKET MOST METROPOLITAN AREAS AND PROVIDE SEAMLESS COASTTOCOAST CONNECTIONS BUT THEY WILL BE SEVERELY TESTED BY A NEW WIRELESS TECHNOLOGY CALLED CELLULAR DIGITAL PACKET DATA THAT ALLOWS THE USE OF CELLULAR PHONES FOR BOTH DATA AND VOICE TRANSMISSION MCCAW CELLULAR COMMUNICATIONS INC IS INVESTING IN THE TECHNOLOGY WHICH IS EXPECTED TO BE AVAILABLE NEXT YEAR CDPD WILL CAPTURE PEOPLE'S IMAGINATION AT COMDEX SAID MARC PORAT CHIEF EXECUTIVE OFFICER OF GENERAL MAGIC INC A CONSORTIUM DEVELOPING SOFTWARE FOR HANDHELD PERSONAL DATA ASSISTANTS IT'S THE BEGINNING OF THE REINVENTION OF TELEPHONY IN ONE INSTRUMENT YOU CAN HAVE VOICE AND DATA BUT THERE ARE PLENTY OF CDPD DETRACTORS WHO SAY IT STILL HAS TECHNICAL BUGS IS INCOMPATIBLE WITH NEW DIGITAL CELLULAR TECHNOLOGIES AND WON'T PROVIDE SEAMLESS NATIONWIDE SERVICE BECAUSE IT'S DEPENDENT ON FRAGMENTED CELLULAR OPERATORS IBM WILL DISPLAY ITS NEW THINKPAD 750C SUBNOTEBOOK AT COMDEX PROMOTING THE FACT IT WILL HAVE A CDPD MODEM AND RADIO INSTEAD OF A FLOPPY DRIVE AND THAT IT CAN IN THEORY SEND AND RECEIVE DATA AND FAXES OVER EITHER CELLULAR OR WIRE PUBLICTELEPHONE NETWORKS NICE PRODUCT BUT THERE IS NO CDPD SYSTEM UP AND RUNNING TODAY NOTES ANDREW SEYBOLD IN A RECENT REVIEW OF CDPD TECHNOLOGY IN HIS NEWSLETTER OUTLOOK ON PROFESSIONAL COMPUTING MULTIMEDIA TECHNOLOGIES WHICH ALLOW COMPUTERS TO HANDLE VIDEO AND AUDIO DATA AS WELL AS CONVENTIONAL COMPUTER DATAHAVE BEEN AROUND FOR SEVERAL YEARS BUT MANY SOFTWARE PROGRAMS AND DEVICES ARE AIMED AT HOME USERS FOR VIDEO GAMES AND THE LIKE BUT MULTIMEDIA HAS ENORMOUS POTENTIAL FOR CORPORATE USES AND SOME COMDEX VENDORS WILL BE SHOWING OFF NEW MULTIMEDIA PRODUCTS AIMED AT BUSINESS MARKETS FOR EXAMPLE AST RESEARCH INC A BIG COMPUTER MAKER BASED IN IRVINE CALIF WILL BE INTRODUCING A LINE OF MULTIMEDIA COMPUTERS TARGETED AT CORPORATIONS MULTIMEDIA WILL HAVE A HUGE OPPORTUNITY TO DO PRESENTATIONS SAYS KENNETH R WATERS PRESIDENT OF MICROAGE INC A BIG DISTRIBUTOR OF COMPUTER PRODUCTS BASED IN TEMPE ARIZ STILL ANALYSTS POINT OUT THAT THERE IS A LONG WAY TO GO BEFORE THE PRODUCTS DRAW WIDESPREAD DEMAND FROM BUSINESSES AND CONSUMERS A MAJOR DRAWBACK THEY SAY IS THAT MULTIMEDIA SO FAR IS NOT TRULY INTERACTIVE WHAT'S BEEN AROUND IS PSEUDOMULTIMEDIA JUST COMBINING TEXT WITH MAYBE SOME MOTION AND A LITTLE SOUND SAYS MARK MACGILLIVRAY MANAGING DIRECTOR OF MARKET WATCHER H&M CONSULTING IN SUNNYVALE CALIF THE KEY TO GETTING MULTIMEDIA IN MAINSTREAM APPEAL IS INTERACTIVITY AND THAT'S WHAT WE STILL HAVEN'T SEEN MUCH OF WHILE A FEW INTERACTIVE FUNCTIONS SUCH AS VIDEO TELECONFERENCING ARE AVAILABLE FOR BUSINESS APPLICATIONS THE COST IS CURRENTLY PROHIBITIVE INSTEAD I WOULD JUST SAY GEEZ JUST SEND ME AN EMAIL MESSAGE' MR MACGILLIVRAY SAYS HOW CRITICAL IS IT TO SEE SOMEBODY'S FACE 9311110084 931111 RETAILING TWO HOT TOYS FOR KIDS WHO LOVE TV BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL TV TEDDY A PLUSH ONEFOOTTALL BEAR FIGURES HIGH IN RETAILERS' EXPECTATIONS THIS CHRISTMAS THAT'S BECAUSE TV TEDDY IS NO ORDINARY BEAR HE HAS AN UNLIMITED VOCABULARY THIS GUY REALLY NEEDS OUR HELP SAYS TEDDY AS HE WATCHES A VIDEOTAPE IN WHICH AN ILLITERATE PIRATE STRUGGLES TO READ A TREASURE MAP THE BEAR GOES ON TO BELT OUT A TUNE HEY MR PIRATE DON'T WORRY ANY MORE WE'LL HELP YOU FIND IT 'CAUSE THAT'S WHAT FRIENDS ARE FOR TOY WATCHERS ARE HAILING TV TEDDY AND A SIMILAR BUT LESS LOQUACIOUS COMPETITOR CALLED TOBY TERRIER AS THE FIRST TRULY INTERACTIVE TOYS THAT SIMULATE THE HUMAN ABILITY TO CONVERSE AND RESPOND TO OUTSIDE STIMULI WIRED TO PICK UP SIGNALS OFF A TRANSMITTER THAT CONNECTS TO THE TELEVISION TV TEDDY CREATED BY YES ENTERTAINMENT BANTERS WITH CHARACTERS ON A SHOW SAYING THINGS LIKE THIS MUST BE SOMETHING THE LAWYERS PUT IN WHEN COPYRIGHT 1993 FLASHES ON THE SCREEN TOBY TERRIER A STUFFED DOG FROM TIGER ELECTRONICS WORKS ONLY WITH VIDEOTAPES A SENSOR ON TOBY'S COLLAR ALLOWS HIM TO RECEIVE SILENT COMMANDS WHILE THE VIDEO RUNS PROMPTING THE TOY TO BARK MOVE SING AND SPEAK NEITHER OF THE TOYS CAN RESPOND TO HUMANS BUT THE TWO TOYS HAVE IMPRESSED TOY BUYERS AND SECURITIES ANALYSTS FROM AN INNOVATION STANDPOINT THEY ARE THE TWO MOST EXCITING TOYS COMING OUT THIS YEAR SAYS ROGER GODDU GENERAL MERCHANDISE MANAGER FOR TOYS R US INC THE NATION'S LARGEST TOY RETAILER PAUL VALENTINE AN ANALYST AT STANDARD & POOR'S HAS PLACED THE BATTERYOPERATED TOYS NEAR THE TOP OF HIS LIST OF HOT CHRISTMAS TOYS RETAILERS HAVE ALREADY ORDERED ABOUT 500000 TV TEDDY TOYS WHICH RETAIL FOR 70 AND 400000 COPIES OF TOBY WHICH RETAILS FOR 50 AND MANY MORE OF THE VIDEOTAPES WHICH SELL FOR ABOUT 12 BUT THE TOYS COULD ALSO STIR DEBATE AMONG CHILDDEVELOPMENT EXPERTS AND OTHERS ABOUT A TOY THAT ONLY WORKS WHEN THE TELEVISION IS ON THEY ALSO WORRY ABOUT THE EFFECTS ON A CHILD OF SUCH A GLIB TALKER AS TEDDY I'D LIKE TO KNOW MORE ABOUT THIS PERSON' BEFORE I BRING HIM INTO MY HOUSEHOLD SAYS JEAN QUINN A BOSTON BUSINESS CONSULTANT AS SHE WATCHES A DEMONSTRATION OF TV TEDDY DO WE NEED A TEDDY BEAR THAT CAN PUT A CHILD'S IMAGINATION ON THE SIDELINES HOPE LASITER A WALTHAM MASS MOTHER OF TWO PRESCHOOLERS WONDERS AFTER TEDDY TAKES UP PERMANENT RESIDENCE IN MY HOME HOW DIFFICULT WILL IT BE FOR ME TO GO AGAINST ANYTHING TEDDY SAYS TV TEDDY REPRESENTS ONE OF THE FIRST EXTENSIVE INVOLVEMENTS BY A MAJOR BROADCASTER IN DEVELOPING AND SELLING PLAYTHINGS THAT NEED A TELEVISION TO WORK CAPITAL CITIES/ABC INC IS A MAJOR INVESTOR IN YES ENTERTAINMENT IN JANUARY IT WILL AIR A HALFHOUR CHILDREN'S PROGRAM CARRYING SIGNALS THAT WILL MAKE THE TOY PERFORM DON KINGSBOROUGH THE CHAIRMAN AND CHIEF EXECUTIVE OF YES ENTERTAINMENT ALSO INVENTED SUCH POPULAR TOYS AS TEDDY RUXPIN A BEAR WHOSE MOUTH AND EYES MOVED AS IT TALKED FROM A TAPE RECORDER IN ITS BELLY AND LASER TAG AN INFRARED GUN TV TEDDY AND TOBY TERRIER AREN'T THE FIRST TOYS TO BE FITTED WITH ELECTRONICS THE LATEST WAVE OF TALKING DOLLS MADE QUIET EXITS SHORTLY AFTER THEIR INTRODUCTIONS ABOUT FIVE YEARS AGO BECAUSE OF THEIR LIMITED CAPABILITIES AND 100 PRICE TAGS SUBSEQUENTLY MANY TOY COMPANIES PULLED THE PLUGS ON OTHER INTERACTIVE RESEARCH PROJECTS HASBRO INC ABANDONED A 25 MILLION EFFORT TO CREATE A VCRBASED INTERACTIVE GAME IN 1988 AND MATTEL SCRATCHED PLANS FOR A COMPACT VIDEOGAME SYSTEM SHORTLY AFTER PRICE POSED THE MOST TROUBLE HAD THOSE SYSTEMS BEEN INTRODUCED THEN THEY WOULD HAVE COST BETWEEN 250 AND 400 EACH TOBY AND TV TEDDY ARE DIFFERENT FROM OTHER SOCALLED INTERACTIVE TOYS BECAUSE THEY ARE CAPABLE OF PERFORMING MORE FUNCTIONS BOTH TIGER ELECTRONICS AND YES ENTERTAINMENT SQUEEZE ELECTRONIC MESSAGES INTO BANDS THAT ARE INVISIBLE TO THE VIEWER UNDER TIGER'S SYSTEM THE MESSAGES ARE CODED FOR TOBY TO UNDERSTAND AND SLIPPED INTO LIGHT AND COLOR BANDS EMITTED FROM THE TV SCREEN A SENSOR ON TOBY'S COLLAR COLLECTS THE SIGNAL A MICROPROCESSOR IN THE TOY INTERPRETS THE DATA AND INSTRUCTS THE DOG TO MOVE SING AND SAY SUCH THINGS AS GOOD IDEA SCRATCH MY FLEAS AND I LOVE YOU AS THE VIDEO RUNS THE WORDS ARE STORED IN A COMPUTER CHIP IN THE DOG TIGER ELECTRONICS A MAKER OF HANDHELD VIDEO GAMES BASED IN VERNON HILLS ILL LICENSED THE TECHNOLOGY FROM INTERACTIVE SYSTEMS INC OF BEAVERTON ORE UNDER THE YES SYSTEM THE MESSAGES ARE TRANSMITTED VIA A RADIO ANTENNA ATTACHED TO THE VIDEOCASSETTE RECORDER TO A SPEAKER INSIDE TEDDY'S HEAD THE SYSTEMS FOR TOBY AND TEDDY AREN'T COMPATIBLE BETWEEN NOW AND CHRISTMAS CONSUMERS WILL HAVE A CHOICE OF A DOZEN VIDEOTAPES TO PLAY WITH EACH TOY TEDDY IS TO INTERACTIVE ENTERTAINMENT WHAT PONG WAS TO VIDEO GAMES A NEW BEGINNING SAYS MR KINGSBOROUGH OF YES ENTERTAINMENT THE SIGNALS THAT MAKE TV TEDDY TALK CAN BE USED FOR INTERACTIVE ENTERTAINMENT WITH COMPUTERS AND OTHER ELECTRONIC FORMATS HE ADDS ABC ALSO PLANS MORE BROADCASTS FOR TEDDY INTERACTIVE SYSTEMS SAYS A VARIATION OF THE TOBY TECHNOLOGY WILL SOON BE AVAILABLE FOR ADULT FAMILY ENTERTAINMENT THE COMPANY HAS LICENSED THE TECHNOLOGY TO BROADCAST STATIONS ABROAD AND WILL TEST THE SYSTEM IN A FEW HOMES IN PORTLAND ORE NEXT MONTH THE TECHNOLOGY USING A DECODER ALLOWS VIEWERS TO PRINT COUPONS FROM ICONS ON THE TV SCREEN AND CAST VOTES ON PRODUCT PREFERENCES OR POLITICIANS IT COULD MAKE THE GLOBAL TOWN HALL WORLD OF ROSS PEROT COME TRUE SAYS FRED DAY VICE PRESIDENT OF ENGINEERING 9311110083 931111 LEISURE & ARTS BOOKSHELF REASSESSING RACISM BY ABIGAIL THERNSTROM LOTS OF ORDINARY FOLKS KNOW IT BUT IT'S NOT THE SORT OF THING SOCIAL SCIENTISTS TEND TO SAY WHEN IT COMES TO QUESTIONS OF PUBLIC POLICY FEW WHITES ARE RACISTS WHITES MAY OPPOSE PARTICULAR ITEMS ON THE STANDARD CIVIL RIGHTS AGENDA BUT THEY'RE NOT BIGOTS THAT'S THE MAIN POINT PAUL M SNIDERMAN AND THOMAS PIAZZA MAKE IN THE SCAR OF RACE HARVARD UNIVERSITY PRESS 212 PAGES 1895 AND IT'S A STINGING REBUKE TO THE CULTURAL ELITE THAT GENERALLY THINKS OTHERWISE IT'S NOT THAT MESSRS SNIDERMAN AND PIAZZA SEE AMERICANS AS PARAGONS OF RACIAL VIRTUE THEY CERTAINLY ACKNOWLEDGE THE PERSISTENCE OF PREJUDICE BUT THEY ALSO BELIEVE THAT THE CONTEMPORARY DISCUSSION OF RACE CONFUSES TWO DISTINCT QUESTIONS WHAT WHITE AMERICANS THINK ABOUT BLACKS AND WHAT THEY THINK ABOUT PUBLIC POLICIES DEALING WITH BLACKS ABOUT WHOM PRECISELY ARE THEY SPEAKING THEY'RE APPARENTLY RELUCTANT TO SAY BUT THE LIST IS CLEAR THE MAINSTREAM MEDIA THE CIVIL RIGHTS COMMUNITY CORNELL WEST ANDREW HACKER DERRICK BELL AND OTHER DISTINGUISHED MEMBERS OF THE ACADEMY AND OUR PRESIDENT WHO RECENTLY CONFUSED A DISTASTE FOR NEW YORK'S BLACK MAYOR WITH HOSTILITY TOWARDS BLACKS IN GENERAL ONCE UPON A TIME OF COURSE RACISM WAS PRECISELY THE ISSUE IN FACT GUNNAR MYRDAL'S CLASSIC AN AMERICAN DILEMMA PAINTED TOO ROSY A PICTURE IN 1944 MOST AMERICANS FELT LESS GUILTY ABOUT MATTERS OF RACE THAN HE SUPPOSED BUT THE MYTH OF A NATION WITH A HEART OF GOLD BENEATH THE TRAPPINGS OF BIGOTRY WAS PUT TO EXCELLENT USE AND IN THE 1960S IT BECAME A SELFFULFILLING PROPHECY A STORY THAT TOOK ON A LIFE OF ITS OWN AND INSPIRED A MORAL CRUSADE THAT CHANGED THE NATION'S RACIAL LANDSCAPE THE MYRDAL THESIS THAT WE ARE A DECENT PEOPLE UP TO INDECENT THINGS WAS RIGHT FOR HIS TIME BUT WRONG FOR OURS DECENCY IS NO LONGER THE ISSUE THE QUESTION OF RACE HAS LOST ITS MORAL SIMPLICITY A GREAT DIVIDE NO LONGER SEPARATES SINNERS FROM SAVED AS MESSRS SNIDERMAN AND PIAZZA PERSUASIVELY ARGUE THERE IS NO LONGER ONE ISSUE OF RACE BUT A NUMBER OF DISTINCT ISSUES AND THE POLITICS OF THESE ISSUES DIFFER IN TELLING WAYS IN FACT POLITICS HAS BECOME THE NAME OF THE RACIAL GAME THAT'S THE POINT THAT IS GENERALLY MISSED BUT THAT THE SCAR OF RACE MAKES SO CLEAR DISAGREEMENTS OVER AFFIRMATIVE ACTION BUSING FAIR HOUSING AND OTHER RACIAL QUESTIONS ARE PRIMARILY POLITICAL AND IDEOLOGICAL FOR INSTANCE CONSERVATIVES THE AUTHORS FOUND TEND TO REJECT THE IDEA THAT AN UNDEPENDABLE BLACK WORKER DESERVES A LOT OF HELP IN FINDING A NEW JOB BUT OF COURSE BEING CONSERVATIVE THEY ARE NATURALLY INCLINED TO OPPOSE GOVERNMENT HELP OF THIS KIND WHOEVER WILL GET IT THEY DO NOT SINGLE BLACKS OUT IN FACT AND HERE'S THE SURPRISE THEY ARE EVEN MORE OPPOSED TO GIVING HELP TO A WHITE HOWEVER DEPENDABLE HE OR SHE MAY BE MESSRS SNIDERMAN AND PIAZZA'S FINDINGS REST ON FIVE PUBLIC OPINION SURVEYS ONE OF WHICH IS PARTICULARLY INNOVATIVE IN DESIGN THE DATA PAINT NOT ONE PICTURE BUT MANY AND THIS IS ANOTHER CENTRAL POINT NO TWO QUESTIONS INVOLVING RACE THE AUTHORS CONCLUDE ARE PRECISELY THE SAME A LARGE NUMBER OF RACIAL ISSUES STAND SUBSTANTIALLY ON THEIR OWN THEY WRITE BUSING IS ONE QUESTION FAIR HOUSING ANOTHER ONLY THOSE WHO INSIST ON AN ALLPURPOSE RACIAL LITMUS TEST ARE YOU FOR OR AGAINST BLACKS ARE BLIND TO THE DIVERSITY OF THE RACIAL SCENE OR PERHAPS NOT BLIND BUT SIMPLY POLITICALLY ASTUTE FOR ALTHOUGH THE AUTHORS DON'T SAY IT CLEARLY IT'S IN THE INTEREST OF THE CIVIL RIGHTS LOBBY TO KEEP THE PICTURE MORALLY SIMPLE THAT'S BEEN THE KEY TO THEIR RECORD OF SUCCESS AS LONG AS RACE IS A PROBLEM OF THE HEART THEY OWN THE HIGH MORAL GROUND ADMIT THAT THE POLITICS OF AFFIRMATIVE ACTION AS THE SCAR OF RACE PUTS IT HAS REMARKABLY LITTLE TO DO WITH WHITES' FEELINGS TOWARDS BLACKS AND MUCH TO DO WITH CONFLICTING NOTIONS OF RUDIMENTARY JUSTICE AND THE MONOPOLY ON VIRTUE THAT CIVIL RIGHTS ADVOCATES HAVE SO LONG ENJOYED INSTANTLY VANISHES AND YET AS MESSRS SNIDERMAN AND PIAZZA POINT OUT THAT MONOPOLY HAS HAD ITS COSTS AND PERHAPS EVEN THE CIVIL RIGHTS GROUPS WILL FIND THE PRICE SOON NOT WORTH PAYING FOR INSTANCE AFFIRMATIVE ACTION THEY FIND IS SO INTENSELY DISLIKED THAT IT HAS LED SOME WHITES TO DISLIKE BLACKS AN IRONIC EXAMPLE OF A POLICY MEANT TO PUT THE DIVIDE OF RACE BEHIND US IN FACT FURTHER WIDENING IT MORE GENERALLY THE SERIOUS CHARGE OF PREJUDICE INDISCRIMINATELY FLUNG LOSES ALL MEANING EXCEPT AS A TERM OF POLITICAL OPPROBRIUM THEIR POINT IS NOT TO URGE A CIVIL RIGHTS RETREAT THEY SIMPLY WANT LESS HEART AND MORE HEAD MORE IN THE WAY OF POLITICAL SMARTS SOME ISSUES ARE WINNABLE SOME AREN'T AMERICANS CAN'T BE SOLD ON BUSING NOT EVEN THE MAJORITY OF AFRICANAMERICANS ARE ON BOARD BUT ON THE QUESTION OF INCREASED SPENDING FOR PROGRAMS TO HELP BLACKS FOR EXAMPLE A REMARKABLE FOUROUTOF10 SEEM WILLING TO SHIFT GROUND THIS IS AMERICAN POLITICS AS USUAL POLITICAL COALITIONS AS THE AUTHORS POINT OUT ARE GENERALLY LOOSE SHIFTING AND AMORPHOUS IT IS TIME TO LOOK AGAIN AT HOW AMERICANS THINK ABOUT THE ISSUE OF RACE MESSRS SNIDERMAN AND PIAZZA WRITE THEY'VE LOOKED AGAIN AND FOUND NOT ONLY CHANGE BUT AN ONGOING OPENNESS TO CHANGE IT'S A HEARTENING MESSAGE IN A BEAUTIFULLY CRAFTED BOOK THE SCAR OF RACE IS A FRESH AND SUBTLE WORK AND MUCH NEEDED MS THERNSTROM IS THE AUTHOR OF WHOSE VOTES COUNT AFFIRMATIVE ACTION AND MINORITY VOTING RIGHTS 9311110082 931111 BUSINESS BRIEFS INTERCITY PRODUCTS INC WINNIPEG MANITOBA PLANS TO SEEK A BUYER FOR ITS COMMERCIAL REFRIGERATION BUSINESS IN ORDER TO CUT COSTS AND FOCUS ON ITS CORE BUSINESSES REPUBLIC BANCORP INC COMPLETED ITS PREVIOUSLY ANNOUNCED DEAL TO BUY THE MORTGAGEORIGINATION NETWORK AND CERTAIN OTHER ASSETS OF CALIFORNIA UNITED BANK OF ENCINO CALIF FOR 4 MILLION CALIFORNIA MICROWAVE INC'S SATELLITE TRANSMISSION SYSTEMS INC UNIT WON A 164 MILLION CONTRACT TO DESIGN BUILD AND INSTALL TWO INTELSTAT EARTH STATIONS FOR SINGAPORE TELECOM ADAPTEC INC SIGNED A 15 MILLION SUPPLY AGREEMENT WITH TAIWAN SEMICONDUCTOR MANUFACTURING CO A SILICONFOUNDRY BASED IN HSINCHU TAIWAN THE AGREEMENT PROVIDES ADAPTEC WITH INCREASED CAPACITY FOR ITS SEMICONDUCTOR WAFERS WYSE TECHNOLOGY INC A MANUFACTURER OF TERMINALS AGREED TO BUY THE TERMINALS MONITORS AND PRINTERSUPPLIES BUSINESS OF QUME CORP OF MILPITAS CALIF FOR 138 MILLION ORACLE CORP SIGNED A TWOYEAR 23 MILLION CONTRACT WITH DUKE POWER CO CHARLOTTE NC UNDER TERMS OF THE PACT ORACLE'S CONSULTING DIVISION WILL DEVELOP A CUSTOMER INFORMATION SYSTEM FOR THE ELECTRIC UTILITY THE TWO ALSO AGREED TO A JOINT MARKETING PROGRAM IN WHICH ORACLE WILL RESELL UTILITY SYSTEMS DEVELOPED DURING THEIR PROJECT FOR CUSTOMER INFORMATION WORK MANAGEMENT AND MARKETING 9311110081 931111 PACIFIC BELL PLANS YEAR PROJECT FOR 15 BILLION AT&T LIKELY TO GET ORDERS OF 5 BILLION TO BUILD DIGITAL PHONE NETWORK BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PACIFIC TELESIS GROUP'S CALIFORNIA PHONE COMPANY IS SET TO ANNOUNCE IT WILL BUILD A MASSIVE VIDEO SUPERHIGHWAY TO HOMES ACROSS ITS TERRITORY BY SPENDING MORE THAN 15 BILLION OVER SEVEN YEARS AMERICAN TELEPHONE & TELEGRAPH CO WILL BE A PRIME BENEFICIARY IN PACIFIC BELL'S EFFORT RECEIVING ORDERS OF ABOUT 5 BILLION AND SERVING AS THE SYSTEMS INTEGRATOR ON THE PROJECT KNOWLEDGEABLE EXECUTIVES SAID UNDER THE PROJECT'S FIRST PHASE PACBELL PLANS TO UPEND MOST OF ITS EXISTING NETWORK IN FAVOR OF AN EFFICIENT ALLDIGITAL HIGHWAY THE SYSTEM WILL USE FIBEROPTIC LINES HIGHSPEED TRANSMISSION SYSTEMS AND CABLE TVLIKE COAXIAL WIRES TO DELIVER PHONE CALLS DATA AND ENTERTAINMENT PROGRAMMING TO HOMES AND OFFICES OVER PACBELL PHONE LINES THIS WILL BE THE BIGGEST OVERHAUL YET ANNOUNCED BY ANY BELL COMPANY AND COULD SET THE STAGE FOR SIMILAR PROJECTS AT THE OTHER BABY BELLS SAID ONE PERSON CLOSE TO THE PROJECT PACBELL IS SET TO UNVEIL THE EFFORT TODAY ALTHOUGH SPOKESPERSON FOR THE PHONE COMPANY AND FOR AT&T DECLINED TO COMMENT ON THE PLANS PACIFIC TELESIS HAS BEEN AMONG THE SLOWEST OF THE SEVEN REGIONAL BELL COMPANIES TO MODERNIZE IN PART BECAUSE OF ERSTWHILE TAKEITSLOW MANAGEMENT AND AN ADVERSARIAL REGULATORY CLIMATE BUT PACBELL'S PARENT HAS TAKEN BIG STEPS IN THE LAST YEAR TO BECOME MORE AGRESSIVE WITH PLANS TO SPIN OFF ITS CELLULAR PHONE BUSINESS INTO A SEPARATE PUBLIC COMPANY PACBELL ITSELF HAS CUT MORE FAVORABLE DEALS WITH STATE REGULATORS TO WIN MORE FREEDOM IN PRICING THE PHONE COMPANY WILL NEED TO WIN NEW CONCESSIONS FROM REGULATORS TO DEPLOY THE VIDEO SERVICES IT PLANS TO OFFER WITH THE NEW NETWORK FEDERAL LAW PROHIBITS THE SEVEN BABY BELLS FROM OFFERING VIDEO SERVICES IN THEIR OWN SERVICE AREA AND ONLY BELL ATLANTIC CORP HAS WON A COURT DECISION VACATING THE BAN IN APPARENT RECOGNITION OF THE POLITICAL HURDLES PACBELL HAS LINED UP CALIFORNIA GOV PETE WILSON TO APPEAR AT A NEWS CONFERENCE TODAY ESSENTIALLY TO ENDORSE THE PLANS PEOPLE FAMILIAR WITH THE ANNOUNCEMENT SAID THE DEAL WITH AT&T COULD GIVE PACIFIC TELESIS A SHOT AT LEAPFROGGING OVER ITS BABY BELL RIVALS IN THE RACE TO OFFER CONSUMERS ALL KINDS OF INTERACTIVE SERVICES BY MODERNIZING QUICKLY PACIFIC TELESIS MAY BE CHOOSING TO FOCUS INVESTING IN ITS OWN NETWORK TECHNOLOGY INSTEAD OF PURSUING MEGADEALS WITH CABLE AND ENTERTAINMENT PLAYERS AS WITH BELL ATLANTIC'S RECENT PLAN TO ACQUIRE CABLE GIANT TELECOMMUNICATIONS INC FOR AT&T PACBELL'S PLANS COULD HAVE A BENEFICIAL IMPACT ON THE 14 BILLION US MARKET FOR PUBLIC TELECOMMUNICATIONS NETWORK EQUIPMENT THE DEAL THE LARGEST SINGLE EQUIPMENT ORDER EVER LANDED IN THE PHONE INDUSTRY WOULD PUT FURTHER DISTANCE BETWEEN MARKET LEADER AT&T AND ITS STRUGGLING RIVAL FOR US BUSINESS NORTHERN TELECOM LTD OF CANADA THE NEW NETWORK WILL BE BUILT IN STAGES WITH THE FIRST AIMING TO HOOK UP 15 MILLION HOMES IN THE SAN FRANCISCO BAY AREA LOS ANGELES ORANGE COUNTY AND SAN DIEGO BY THE END OF 1996 BY THE END OF THE DECADE PACBELL EXPECTS TO HAVE FIVE MILLION HOMES HOOKED UP TO THE NEW SERVICES EXECUTIVES SAID PACBELL PRESIDENT PHILIP QUIGLEY TELEGRAPHED SOME OF THE COMPANY'S MOVES IN APRIL WHEN HE TOLD PEOPLE AT AN INDUSTRY CONFERENCE THAT PACBELL'S GOAL WAS TO HAVE ALL CALIFORNIA HOMES CONNECTED TO A SUPERHIGHWAY BY 2015 ONE PERSON SAID PACBELL EXPECTS ITS NETWORK TO SERVE AS A LAUNCHPAD FOR A HOST OF VIDEO SERVICES TO THE HOME INCLUDING SOCALLED VIDEO DIAL TONE THAT ALLOWS A CUSTOMER TO CALL FOR A MOVIE OR OTHER PROGRAMMING PACBELL ALSO IS BANKING ON THE NEW NETWORK TO DRIVE DOWN ITS COSTS THE NEW SYSTEM WILL BE EASIER TO MAINTAIN AT&T SOFTWARE WILL ALLOW A TECHNICIAN TO CHANGE THE NUMBER OF CHANNELS OR CIRCUITS FEEDING INTO EACH HOME BY JUST TAPPING A FEW TIMES ON A COMPUTER KEYBOARD AND TO PINPOINT TROUBLE SPOTS WITHOUT HAVING TO SEND OUT A WORK CREW OTHER BABY BELLS HAVE BEEN SLOW TO ANNOUNCE SUCH SWEEPING OVERHAULS OF THEIR SYSTEMS BELL ATLANTIC HAS SAID IT WILL SPEND 15 BILLION OVER FIVE YEARS TO MODERNIZE ITS NETWORK AND TCI'S CABLE SYSTEMS ITS PRIMARY OVERHAUL BEGINS WITH REWIRING NEW JERSEY ONE OF THE SEVEN STATES IT SERVES WITH HIGHCAPACITY FIBEROPTIC LINES WITH THE 5 BILLION ORDER AT&T WILL HAVE TO SUPPLY THOUSANDS OF MILES OF FIBEROPTIC TRUNK LINES THAT WILL CARRY VIDEO TRAFFIC INTO NEIGHBORHOODS COAXIAL WIRE THAT WILL BRING THE TRAFFIC TO EACH HOME AND TINY AT&T CONTROL BOXES THAT WILL FEED TO TV SETS AND TELEPHONES 9311110079 931111 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 LOW 2 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 310 30 TO 42 DAYS 308 43 TO 59 DAYS 333 60 TO 149 DAYS 335 150 TO 239 DAYS 341 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 340 60 DAYS 340 90 DAYS CERTIFICATES OF DEPOSIT 256 ONE MONTH 271 TWO MONTHS 273 THREE MONTHS 282 SIX MONTHS 301 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 307 ONE MONTH 333 THREE MONTHS 337 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 330 60 DAYS 327 90 DAYS 327 120 DAYS 327 150 DAYS 327 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 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 643 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 8 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 311 13 WEEKS 328 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 697 60 DAYS 705 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 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 9311110078 931111 METROPOLITAN LIFE WAS ASSAILED IN '90 FOR SALES TACTICS BUT DIDN'T HALT THEM BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL METROPOLITAN LIFE INSURANCE CO WAS NOTIFIED BY TEXAS REGULATORS ALMOST FOUR YEARS AGO ABOUT QUESTIONABLE SALES PRACTICES AT ITS TAMPA FLA OFFICE BUT FAILED TO CRACK DOWN ON THE TACTICS NEW YORKBASED MET LIFE IS ALREADY BEING INVESTIGATED IN FLORIDA AND SEVERAL OTHER STATES OVER THE SALES LITERATURE AS WELL AS VERBAL REPRESENTATIONS MADE BY THE SALES AGENTS IN TAMPA MET LIFE'S LARGEST SALES OFFICE FLORIDA INSURANCE OFFICIALS HAVE ACCUSED THE MET LIFE AGENTS OF MISREPRESENTING HIGHCOMMISSION LIFE INSURANCE POLICIES AS SAVINGS ACCOUNTS THAT CARRY NO SALES CHARGES THE TAMPA OFFICE CONTINUED TO SEND THE LITERATURE UNTIL FLORIDA FILED A LEGAL ORDER IN AUGUST IN JANUARY 1990 AN OFFICIAL WITH THE TEXAS INSURANCE DEPARTMENT WARNED MET ABOUT THE OVERALL MISLEADING CHARACTER OF MET SALES LITERATURE THAT THE TAMPA SALES OFFICE SENT TO POTENTIAL CUSTOMERS ACROSS THE COUNTRY THE OFFICIAL ASKED MET LIFE TO VOLUNTARILY STOP USING THE MATERIALS A COMPANY OFFICIAL IN NEW YORK SAID HE DIRECTED THE TAMPA SALES OFFICE TO HALT THE TACTICS BUT WAS APPARENTLY IGNORED THE TEXAS NOTIFICATION SHOWS THAT MET LIFE WAS ALERTED ABOUT THE TACTICS NEARLY TWO YEARS SOONER THAN ORIGINALLY BELIEVED A MET LIFE INTERNAL AUDIT TURNED UP THE PRACTICES IN NOVEMBER 1991 A MET SPOKESMAN SAID MET SENIOR MANAGERS WERE NEVER TOLD ABOUT THE TEXAS REGULATORS' LETTER IN AN ADMINISTRATIVE ACTION BROUGHT AGAINST MET LIFE IN AUGUST FLORIDA REGULATORS ACCUSED MET'S MANAGEMENT OF OVERLOOKING THE PRACTICES BECAUSE THE TAMPA AGENTS WERE SO SUCCESSFUL MET LIFE DENIES THE ACCUSATION THAT ASSERTION IS WITHOUT BASIS IN FACT SAID THE MET SPOKESMAN WE MADE A STRENUOUS EFFORT TO MAKE SURE THE SALES LITERATURE WASN'T USED OBVIOUSLY THOSE EFFORTS WERE NOT AS EFFECTIVE AS WE WOULD HAVE LIKED THEM TO BE MET HAS VOLUNTEERED TO REFUND PREMIUMS TO THE 18000 CUSTOMERS WHO BOUGHT POLICIES FROM THE TAMPA OFFICE SO FAR NEARLY A THIRD OF THOSE CUSTOMERS HAVE REQUESTED REFUNDS AND HAVE BEEN PAID A TOTAL OF 6 MILLION ALTHOUGH THE AGENTS RECEIVED LARGE COMMISSIONS FROM THE SALES THE MET SPOKESMAN SAID THE COMPANY HAS LOST MONEY ON THE BUSINESS WRITTEN BY THE TAMPA OFFICE IN PART BECAUSE OF THE REFUNDS IN ADDITION INSURANCE COMPANIES SELDOM PROFIT RIGHT AWAY FROM POLICIES BECAUSE OF THE STEEP COMMISSIONS PAID TO AGENTS SHORTLY AFTER THE POLICIES ARE SOLD THE FLORIDA INSURANCE DEPARTMENT HAS HIRED MIAMI ATTORNEY THOMAS TEW TO INVESTIGATE MET THE COUNTRY'S LARGEST SELLER OF LIFE INSURANCE FLORIDA HAS SAID IT WILL WAIT UNTIL MR TEW FINISHES HIS PROBE BEFORE DECIDING WHAT IF ANY DISCIPLINARY ACTIONS TO TAKE IN ADDITION TO FLORIDA AND TEXAS THE SALES PRACTICES ARE BEING INVESTIGATED IN PENNSYLVANIA AND NORTH CAROLINA 9311110077 931111 PEPPERAND SALT GREEDILY GROWING TOO BIG FOR THEIR BRIDGES PAY TO THE ORDER OF 9311110076 931111 FINANCING BUSINESS LCI INTERNATIONAL INC LCI INTERNATIONAL INC MCLEAN VA THE TELECOMMUNICATIONS COMPANY SAID IT FILED TO OFFER 35 MILLION COMMON SHARES IN A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY FILED FOR THE PROPOSED PRIMARY OFFERING OF 17 MILLION ADDITIONAL SHARES OF ITS COMMON STOCK AND A SECONDARY OFFERING OF 18 MILLION SHARES BY CERTAIN EXISTING SHAREHOLDERS NET PROCEEDS FROM THE ADDITIONAL 17 MILLION SHARES ARE ESTIMATED AT 65 MILLION AND WILL BE USED WITH CASH AVAILABLE TO REDEEM APPROXIMATELY 100 MILLION OF EXISTING SENIOR SECURED DEBT AND TO FUND A PORTION OF LCI'S INVESTMENT IN STN INC A CANADIAN RESELLER OF LONG DISTANCE TELECOMMUNICATIONS SERVICES WARBURG PINCUS CAPITAL CO WILL SELL ABOUT ONE MILLION OF ITS EXISTING SHARES IN THE SECONDARY OFFERING CUTTING ITS STAKE IN THE COMPANY TO 42 FROM 53 9311110075 931111 CORPORATE FOCUS CORNING SAYS OUTLOOK IS BRIGHT DESPITE LOW STOCK PRICE REBOUND HINGES ON RECOVERY OF LAB SERVICES AND FIBER OPTICS BUSINESSES BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL WHEN CORNING INC WARNED ANALYSTS LAST MONTH THAT ITS THIRDQUARTER AND FULLYEAR RESULTS WOULD FALL SIGNIFICANTLY SHORT OF EXPECTATIONS ITS STOCK PLUMMETED ITS SHARES HAVE SINCE EDGED LOWER FORCING THE CORNING NY COMPANY WITH INTERESTS IN LABORATORY SERVICES FIBER OPTICS SPECIALTY MATERIALS AND KITCHEN PRODUCTS TO POSTPONE A STOCK OFFERING THE COMPANY HAD PLANNED TO USE PROCEEDS FROM THE OFFERING TO REFINANCE ITS RECENT ACQUISITION OF DAMON CORP A MEDICAL LAB TESTING CONCERN THAT IT HAD BOUGHT IN AN EFFORT TO BECOME ONE OF THE NATION'S LOWCOST MEDICALSERVICE PROVIDERS BUT NOW CORNING IS SADDLED WITH AN ADDITIONAL 400 MILLION IN SHORTTERM DEBT ANALYSTS DON'T EXPECT THE STOCK TO RECOVER FOR AT LEAST SIX MONTHS AND CORNING SAYS ITS EXAMINING ITS ALTERNATIVES TO REFINANCE THE DEBT IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY CORNING CLOSED UNCHANGED AT 27 DOWN 20 FROM 33625 JUST BEFORE LAST MONTH'S ANNOUNCEMENT BUT CORNING CONTENDS THAT ITS OUTLOOK IS BRIGHTER THAN ITS STOCK PRICE SUGGESTS ALTHOUGH FALLING PRICES AND DISCOUNTING ARE HURTING ITS LAB SERVICES AND FIBER OPTICS BUSINESSES NOW THEY ARE EXPECTED TO RECOVER AND WHILE ITS HOUSEHOLD PRODUCTS OPERATION IS STILL UNPROFITABLE THE COMPANY HAS STRONG POSITIONS IN SMALL BUT RAPIDLY GROWING BUSINESSES THESE INCLUDE COLOR MONITORS FOR LAPTOP COMPUTERS AND CERAMIC DISK DRIVES WITH MORE ROOM TO STORE DATA THAN CONVENTIONAL DRIVES MOST OF WHICH ARE MADE OF ALUMINUM WE'RE MUCH LESS PESSIMISTIC THAN THE CHANGE IN STOCK PRICE WOULD SUGGEST SAYS VICE CHAIRMAN VAN CAMPBELL BEAR STEARNS CHAIRMAN ALAN GREENBERG APPARENTLY AGREES HE'S BUYING CORNING SHARES CALLING IT A VALUE PLAY OVER THE NEXT SIX MONTHS THE REASON IT'S BELOW 40 THAT MAKES IT A VALUE PLAY HE SAYS EVEN ANALYSTS WHO DOWNGRADED THE STOCK BASED ON THE WEAK THIRDQUARTER SHOWING SAY THE COMPANY IS POISED FOR A REBOUND BY THE MIDDLE OF NEXT YEAR THE LAB SERVICES BUSINESS WHICH GENERATED 203 MILLION OF CORNING'S 337 MILLION IN OPERATING PROFIT LAST YEAR IS UNDER THE MOST PRESSURE THE ENTIRE INDUSTRY IS UNDER REGULATORY SCRUTINY FOR ALLEGEDLY BILLING MEDICARE FOR UNNECESSARY TESTS MOSTLY BY BUNDLING THE QUESTIONABLE TESTS TOGETHER WITH OTHER MORE COMMONLY ORDERED ONES IN SEPTEMBER CORNING PAID 39 MILLION TO SETTLE SUCH ALLEGATIONS FOR ITS METPATH UNIT AND FOR UNILAB CORP A PUBLICLY TRADED SUCCESSOR TO METPATH'S CALIFORNIA OPERATIONS BUT BOTH METPATH AND DAMON STILL HAVE OUTSTANDING FEDERAL SUBPOENAS SEEKING INFORMATION ABOUT BILLING PRACTICES AT METPATH NINE BLOOD TESTS ARE UNDER REVIEW WHILE THE NUMBER OF TESTS AT DAMON IS 14 ALTHOUGH DAMON'S SUBPOENAS RELATE TO ITS BUSINESS PRACTICES BEFORE BEING ACQUIRED CORNING IS LIABLE FOR ANY SETTLEMENTS OR FINES DAMON HAS TO PAY THE EXTENT OF CORNING'S LIABILITY IS UNCLEAR GIVEN THE COMPLEXITIES UNCERTAINTIES AND EVOLVING ENVIRONMENT IT WOULD BE IRRESPONSIBLE FOR US TO SPECULATE ON A POTENTIAL OUTCOME A SPOKESWOMAN SAYS IN THE MEANTIME CORNING HAS WATCHED AS RIVAL NATIONAL HEALTH LABORATORIES INC AGREED TO DROP TWO BLOOD TESTS FROM A PACKAGE OF TESTS METPATH WHICH NOW INCLUDES DAMON DOESN'T USE THOSE TWO TESTS IN ITS MOST POPULAR PRODUCT A CHEMSCREEN PANEL OF 25 TESTS BUT IT DOES OFFER THE TESTS INDEPENDENTLY THE SCRUTINY AS WELL AS HEIGHTENED CONCERN ABOUT MEDICAL COSTS IN GENERAL HAVE SAPPED PROFITS DOCTORS HAVE BEEN DEMANDING FEWER TESTS PER PATIENT WHILE INSURANCE COMPANIES ARE OFFERING TO PAY LESS FOR THE TESTS THAT ARE ORDERED CORNING'S SURVIVAL STRATEGY IS TO WRING COSTS OUT OF ITS DAMON ACQUISITION WHICH HAS LABS IN 11 CITIES INCLUDING 10 WHERE METPATH ALREADY COMPETES THE COMPANY SAYS THE COST OF CONSOLIDATING THE LABS WILL BE AT THE HIGH END OF THE 25 MILLION TO 50 MILLION CORNING PREVIOUSLY ANNOUNCED ABOUT HALF OF THE BENEFITS FROM THE CONSOLIDATION WILL SHOW UP ON THE BOTTOM LINE NEXT YEAR AND THE REST WILL COME IN 1995 MR CAMPBELL SAID ANALYSTS ARE WILLING TO WAIT IN THE LONG TERM THE ACQUISITION IS GOING TO BE A WINNER FOR THEM SAYS FIRST ANALYSIS CORP ANALYST STEVEN BOUCK THE COMPANY'S OTHER GROWTH ENGINE FIBER OPTICS WHICH CONTRIBUTED 230 MILLION OF LAST YEAR'S OPERATING PROFIT IS ALSO STRUGGLING DECLINING PRICES HAVE OFFSET SALES GAINS ITS BIGGEST CUSTOMERS REGIONAL BELL TELEPHONE COMPANIES HAVE TRADITIONALLY NEGOTIATED 5 TO 6 DISCOUNTS EACH YEAR BUT THIS YEAR THEY LOCKED IN A 15 DISCOUNT AT THE FRONT END OF A THREEYEAR CONTRACT CLEARLY THE CUSTOMER HAS CHANGED THE GROUND RULES OF THE GAME SAYS MR CAMPBELL BUT ANALYSTS EXPECT VOLUME GAINS WILL OFFSET THE LOW PRICING IN THE NEXT SIX MONTHS CORNING AND AMERICAN TELEPHONE & TELEGRAPH CO TOGETHER DOMINATE ABOUT 80 OF THE US MARKET FOR OPTICAL FIBER WHICH TOTALED NEARLY 15 BILLION IN 1993 ESTIMATES MR BOUCK AND DEMAND IS GROWING AS MOVIE SOFTWARE AND INFORMATION COMPANIES SCRAMBLE FOR MORE CABLE THROUGH WHICH TO SELL THEIR WARES MR BOUCK ESTIMATES THAT THE SIZE OF THE MARKET WILL DOUBLE IN DOLLARS WITHIN FOUR YEARS CORNING MUST ALSO DEAL WITH OTHER PROBLEMS ITS DOW CORNING INC 5050 JOINT VENTURE WITH DOW CHEMICAL CO HAS AGREED TO PAY INTO A PROPOSED 475 BILLION 30YEAR FUND TO SETTLE LAWSUITS BROUGHT BY WOMEN WHO ALLEGE THAT THEY'VE SUFFERED MEDICAL PROBLEMS FROM SILICONE BREAST IMPLANTS UNDER PROPOSED TERMS DOW CORNING THE DOMINANT PLAYER IN THE MARKET WOULD BE LIABLE FOR 2 BILLION CORNING WOULD BE LIABLE FOR 1 BILLION WHICH AFTER INSURANCE COULD RESULT IN A CHARGE OF 100 MILLION TO 200 MILLION FINALLY CORNING HAS YET TO TURN AROUND ITS KITCHEN PRODUCTS DIVISION WHICH MAKES COOKWARE AND LAST YEAR POSTED AN OPERATING LOSS OF 142 MILLION AFTER A RESTRUCTURING CHARGE FOR YEARS THE COMPANY HAS BEEN TELLING ANALYSTS THAT IT WILL SELL THE UNIT IF IT DOESN'T TURN AROUND BUT HAS YET TO PUT IT ON THE BLOCK THE COMPANY'S REASON FOR MOVING SLOW IS PSYCHOLOGICAL MR BOUCK SAYS CORNING CAN'T BRING ITSELF TO SELL ITS FOUNDING BUSINESS WHICH FORMS THE CORE OF THE ECONOMY OF THE TOWN THAT BEARS ITS NAME MR CAMPBELL SAYS THE UNIT'S MANAGERS FEEL THEY'RE WORKING AGAINST A DEADLINE TO SET THE BUSINESS RIGHT MR CAMPBELL CONCEDES THAT CORNING HAS BEEN PATIENT IN WAITING FOR RESULTS BUT OUR PATIENCE IS RUNNING THIN HE SAYS 9311110074 931111 BUSINESS BRIEF GYMBOREE CORP PROFIT MORE THAN DOUBLED FOR FISCAL THIRD QUARTER GYMBOREE CORP A BURLINGAME CALIF RETAILER OF INFANT APPAREL AND ACCESSORIES SAID ITS FISCAL THIRDQUARTER NET INCOME MORE THAN DOUBLED TO 44 MILLION OR 35 CENTS A SHARE FROM ABOUT 2 MILLION OR 18 CENTS A SHARE SALES IN THE PERIOD ENDED OCT 31 ROSE 52 TO 342 MILLION FROM 225 MILLION COMPARABLESTORE SALES ROSE 11 FOR THE PERIOD CHAIRMAN DONALD S COHN ATTRIBUTED THE PERFORMANCE TO RECORD GROSS PROFIT LEVELS COUPLED WITH EXCELLENT LEVERAGE OF CORPORATE EXPENSES 9311110073 931111 LEISURE & ARTS FILM ROMANTIC VICTORIAN FAIRY TALE OF LUST BY JULIE SALAMON EVEN IN A SEASON LIKE THIS ONE WITH AN UNUSUAL NUMBER OF EXPERTLY MADE AND EVEN INTELLIGENT RELEASES IT'S RARE TO EXPERIENCE A REAL SENSE OF ADVENTURE AT THE MOVIES EVERYTHING USUALLY SEEMS LIKE A VARIATION ON SOMETHING BUT I CAN PROMISE YOU YOU'VE NEVER SEEN ANYTHING LIKE JANE CAMPION'S THE PIANO THE ONLY THING THAT MAY SEEM FAMILIAR IN THIS MESMERIZING PICTURE IS HARVEY KEITEL'S NAKED BODY LAST VIEWED FROM THIS ANGLE AND AT THIS LARGERTHANLIFE SCALE IN THAT SUCCESS DE GRUNGE THE BAD LIEUTENANT THE PIANO IS THE STORY OF A WOMAN NAMED ADA HOLLY HUNTER WE KNOW LITTLE ABOUT HER EXCEPT THE FOLLOWING SHE LIVES IN THE LATE 19TH CENTURY FOR NO APPARENT REASON SHE HAS BEEN UNABLE TO SPEAK SINCE SHE WAS SIXYEARSOLD SHE HAS A YOUNG DAUGHTER SHE EXPRESSES HERSELF MOST POWERFULLY THROUGH MUSIC AND HER FATHER HAS ARRANGED FOR HER TO MARRY A MAN SAM NEILL LIVING IN NEW ZEALAND THERE IN THE IDYLLIC ANTIPODEAN COUNTRY THAT LATER PRODUCED JANE CAMPION SHE MEETS ANOTHER MAN MR KEITEL STILL DRESSED AT THIS POINT WHO KNOWS SEXUAL REPRESSION WHEN HE SEES IT AND DECIDES TO SET ADA FREE THIS IS SOMETHING HER EVENMOREREPRESSED HUSBAND HAS THOUGHT OF DOING BUT DOESN'T KNOW HOW IN THE TINY COMMUNITY WHERE THEY ALL LIVE THE UNLEASHING OF ADA'S SEXUALITY ROUGHLY CORRESPONDS TO AN EXPLODING BOMB CHAOS FOLLOWS TO SUMMARIZE THIS PLOT IS HOWEVER TO SAY ALMOST NOTHING ABOUT THE WORLD MS CAMPION HAS CREATED ONSCREEN UNLIKE MOST CONVENTIONAL FILMS THIS MOVIE ISN'T SO MUCH ABOUT WHAT HAPPENS TO WHOM AND HOW DESPITE THE MELODRAMATIC FRAME OF ITS STORY WITH ITS BREATHTAKING VISUAL STYLE AND CAREFUL ATTENTION TO SOUND AND MOVEMENT THE MOVIE PROVOKES CONTEMPLATION ABOUT THE WAYS PEOPLE COMMUNICATE THROUGH WORDS THROUGH MUSIC THROUGH SEX AND PERHAPS MOST SIGNIFICANTLY THROUGH TOUCH IN HER LAST FILM ANGEL AT MY TABLE MS CAMPION TOLD THE STORY OF ANOTHER WOMAN WHO COULD ONLY REVEAL HERSELF INDIRECTLY THROUGH HER HANDS IN THAT CASE HER HEROINE THE NEW ZEALAND NOVELIST JANET FRAME EXPRESSED HER EMOTIONS BY TYPING THIS TIME THE WOMAN CHOOSES A PIANO UNTIL MR KEITEL COMES ALONG MS HUNTER'S LIBERATION MAY REMIND YOU OF BEAUTY AND THE BEAST THAT PRIMAL FAIRY TALE OF FEMALE AWAKENING THIS IS NO ACCIDENT BY SETTING THE PIANO IN 19THCENTURY NEW ZEALAND IN A LANDSCAPE OF HAUNTING BEACHES AND MUDDY FORESTS STUNNINGLY PHOTOGRAPHED BY STUART DRYBURGH MS CAMPION TAKES US INTO THE HEART OF A SOUTHERN HEMISPHERE FAIRYLAND SHE UNLEASHES CLASSIC ROMANTIC FORCES ENGULFING WAVES RAIN MUD HER NEW ZEALAND IS THE KIND OF PLACE WHERE SCARY AND EXCITING THINGS HAVE TO HAPPEN BLUNDERING INTO THIS GRIMMIAN DARK WOODS THE SUPERCIVILIZED BRITISH COLONISTS SEEM SLIGHTLY RIDICULOUS THEY LIVE IN NERVOUS ACCOMMODATION WITH THE INDIGENOUS MAORIS AND HAVEN'T BEEN ABLE TO ADJUST TO A LIFE IN NATURE THE WOMEN STUMBLE IN THE MUCK IN HOOPED SKIRTS THE MEN CARRY ON THEIR BUSINESS IGNORING MAORI CULTURE THIS COLONIAL LIFE IS HOWEVER ONLY A HALFNOTICED BACKDROP A CONTEXT FOR STEWART THE MAILORDERING HUSBAND HE'S A WELLINTENTIONED STIFF WHO CREATES HAVOC SIMPLY BY FAILING TO REGISTER WHAT'S THERE IN FRONT OF HIM THE WOMAN HE'S IMPORTED TO MARRY AND THE MAORI WHOSE TERRAIN HE'S INVADED THE MOVIE'S HEROINES ADA AND HER DAUGHTER FLORA ANNA PAQUIN ARE NO LESS BIZARRE THAN THIS BIZARRE PLACE WHERE FATE AND THE VICTORIAN SYSTEM HAVE DEPOSITED THEM MS HUNTER'S ADA IS AN EXTREME CASE OF REPRESSION SHE STARES OUT SILENTLY FROM A BLACK BONNET HER HAIR IS PRESSED IN TIGHT COILS AGAINST HER HEAD SO SHE SEEMS TO BE PEEKING OUT FROM BEHIND A CURTAIN A FRIEND REMARKED THAT SHE LOOKS EERILY LIKE A VICTORIAN DEATH PORTRAIT SHE'S SO PALE AND DRAINED OF LIFE YET THERE'S A VEHEMENT SPIRIT BEHIND THIS SILENT WATCHFULNESS ADA VENTS THIS PASSION AT THE PIANO AND IN THE NOTEPAD SHE WEARS IN A LOCKET AROUND HER NECK LITTLE FLORA GIVES VOICE TO HER MOTHER'S SHARP EDGE WITH AN AUTHORITY THAT'S STARTLING IN A YOUNG GIRL MISS PAQUIN PLAYS THIS PRECOCIOUS CHILD WITH STUNNING CONFIDENCE WHEN ADA'S ALONE WITH HER DAUGHTER TELLING HER FAIRY TALES IN SIGN LANGUAGE SHE MOVES HER HANDS WITH THE DELICATE BEAUTY OF A BALLERINA THE FILMMAKERS WARM THE LIGHTS AND ANOTHER TENDER ADA EMERGES MS HUNTER MAKES THIS HAPPEN AS SHE MAKES HER WHOLE CHARACTER HAPPEN WITH NUANCE AND GESTURE THE ONLY WAY SHE CAN SINCE ADA CAN'T OR WON'T SPEAK MS HUNTER'S TININESS STRANGELY ENHANCES ADA'S FORCE WHEN STEWART PICKS HER AND FLORA UP ON THE BEACH WHERE THEIR SHIP HAS DEPOSITED THEM HE LOOKS PERPLEXED YOU'RE SMALL I NEVER THOUGHT YOU'D BE SMALL THIS TIGHT MAN HAS ALREADY SENSED HER BASIC PARADOX BUT WHILE HE MUSES HIS NEIGHBOR BAINES MR KEITEL HAS IMMEDIATELY GRASPED THAT SOMETHING INTERESTING IS TICKING BEHIND THE LAYERS OF SKIRTS AND PETTICOATS BAINES A NEIGHBOR WHO ALSO ACTS AS A LIAISON TO THE MAORI FOR THE DENSE STEWART WANTS TO PENETRATE THE MYSTERY OF THOSE SKIRTS FOR CRUDE AND IT SEEMS FOR MORE SPIRITUAL REASONS TOO MR KEITEL PLAYS THE ENIGMATIC BAINES WITH AN APPEALING HUMILITY THIS CHARACTER COULD HAVE BEEN TURNED INTO A RAFFISH SEDUCER BUT MR KEITEL'S FINELY TUNED PERFORMANCE AND HIS NOTSOFINELY TUNED PHYSIQUE GIVE THE FILM'S UNVEILED LOVEMAKING SCENES A SURPRISINGLY TENDER REALISM HE HAS NEVER SHOWN HIS TALENTS TO BETTER EFFECT THAN HE DOES IN THE PIANO VIDEO TIP TO UNDERSTAND HOW GREAT HOLLY HUNTER'S PORTRAIT OF THE SILENT ADA IS REMIND YOURSELF THAT IN HER BEST PARTS THE ACTRESS HAS TALKED AND TALKED AND TALKED NOW MIGHT BE A GOOD TIME TO LOOK AT BROADCAST NEWS AND SEE MS HUNTER AS THE PUGNACIOUS AND GARRULOUS TV NEWS PRODUCER 9311110072 931111 LEONARD STERN IS SUED BY FORMER HARTZ PARTNER A FORMER BUSINESS PARTNER OF PETSUPPLY AND REALESTATE MAGNATE LEONARD STERN ALLEGED THAT THE BILLIONAIRE USED SYSTEMATIC ACCOUNTING MANIPULATIONS TO DEFRAUD HIM OF AT LEAST 10 MILLION THE CHARGES WERE MADE IN A CIVIL LAWSUIT FILED TWO WEEKS AGO IN THE SUPERIOR COURT OF NEW JERSEY FOR HUDSON COUNTY THE ALLEGATIONS WERE FIRST REPORTED IN YESTERDAY'S EDITION OF THE RECORD A BERGEN COUNTY NJ NEWSPAPER EUGENE HELLER WHO HELPED MR STERN LAUNCH A LUCRATIVE REALESTATE BUSINESS IN THE EARLY 1970S ORIGINALLY FILED CHARGES AGAINST MR STERN EARLY LAST YEAR BUT THE AMENDED COMPLAINT FILED TWO WEEKS AGO PROVIDED MUCH MORE DETAIL ABOUT THE ALLEGED MISDEALINGS AND THE VALUE OF THE REALESTATE HOLDINGS OF HARTZ MOUNTAIN INDUSTRIES INC A PRIVATELY HELD COMPANY BASED IN SECAUCUS NJ AND CONTROLLED BY MR STERN ACCORDING TO YESTERDAY'S RECORD THE HARTZ GROUP HAS ANNUAL REVENUE OF ABOUT 900 MILLION THE LAWSUIT SEEKS TO RECOVER AT LEAST 10 MILLION IN PARTNERSHIP PAYMENTS AS WELL AS A TREBLED AMOUNT FOR DAMAGES IT ALSO ASKS FOR AN INDEPENDENT ACCOUNTING OF HIS PARTNERSHIP INTEREST MR STERN WHOSE NEW YORKBASED HARTZ GROUP INC CONTROLS HARTZ MOUNTAIN REFUTED THE ALLEGATIONS HE DECLINED TO PROVIDE INFORMATION ABOUT THE VALUE OF ANY OF HIS HOLDINGS 9311110071 931103 ECONOMY CAR MAKERS LIFT QUARTERLY OUTPUT 13 AS ECONOMIC PICKUP HEARTENS INDUSTRY BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT AUTO MAKERS ARE CONTINUING TO BET ON THE ECONOMY'S MODERATE RECOVERY PLANNING A 13 INCREASE IN US PRODUCTION FOR THE FOURTH QUARTER LED BY DETROIT'S BIG THREE THE AUTO MAKERS PLAN TO BUILD AN ESTIMATED 2850571 CARS AND LIGHT TRUCKS IN THE QUARTER UP FROM 2517865 VEHICLES A YEAR EARLIER INDUSTRY SOURCES ESTIMATED 44 OF THE VOLUME WILL COME FROM PICKUPS MINIVANS AND SPORTUTILITY VEHICLES AS THE AUTO MAKERS BOLSTERED BY ROBUST THIRDQUARTER EARNINGS SHIFT MORE OF THEIR PRODUCTION TO SUCH POPULAR HIGHLY PROFITABLE VEHICLES THE OVERALL INDUSTRY OUTLOOK HASN'T CHANGED MUCH SINCE PRODUCTION PLANS FOR THE FOURTH QUARTER WERE ORIGINALLY REPORTED IN SEPTEMBER BUT FORD MOTOR CO HAS BOOSTED ITS ORIGINAL TRUCKPRODUCTION ESTIMATES BY MORE THAN 15000 VEHICLES AS THE COMPANY PLANS TO BUILD 494000 LIGHT TRUCKS IN THE QUARTER MORE THAN ANY OTHER US AUTO MAKER AND NEARLY 13 MORE THAN ITS CLOSEST RIVAL GENERAL MOTORS CORP AS A GROUP THE BIG THREE AUTO MAKERS PLAN TO BUILD 1188397 LIGHT TRUCKS IN THE FOURTH QUARTER ABOUT 18 ABOVE YEAREARLIER LEVELS BY COMPARISON THE BIG THREE ARE BOOSTING FOURTHQUARTER CAR PRODUCTION JUST 13 SO FAR VEHICLE SALES IN THE FOURTH QUARTER ARE SUPPORTING THE INDUSTRY'S PRODUCTION PLANS OCTOBER SALES WHICH ARE TO BE REPORTED TODAY ARE EXPECTED TO BE UP SUBSTANTIALLY FROM A YEAR EARLIER MIDOCTOBER SALES OF CARS AND LIGHT TRUCKS RAN AT A FAIRLY ROBUST 135MILLIONUNIT ANNUAL SELLING RATE I THINK THE JAPANESE AUTO MAKERS DON'T WANT TO ADD FURTHER INVENTORIES SAID CHRISTOPHER CEDERGREN AN AUTO INDUSTRY CONSULTANT WITH AUTOPACIFIC INC IN THOUSAND OAKS CALIF THEN YOU HAVE TO ADD FURTHER INCENTIVES AND DISCOUNTS AS A RESULT JAPANESE AUTO MAKERS ARE PLANNING ONLY A 26 BOOST IN CAR AND TRUCK PRODUCTION FROM YEAREARLIER LEVELS INDUSTRY SOURCES SAID A NOTABLE STANDOUT IS NISSAN MOTOR CO WHICH HAS BOOSTED ITS US CAR PRODUCTION PLANS NEARLY 11 FROM ITS EARLIER ESTIMATE EXPECTING DEMAND TO REMAIN STRONG FOR ITS HOTSELLING ALTIMA WITH INVENTORY LEVELS STILL LOW AT THE BEGINNING OF THE FOURTH QUARTER THE PRODUCTION OUTLOOK APPEARS REALISTIC AND PROFITABLE FOR AUTO MAKERS INDUSTRY SOURCES SAID AT THE END OF SEPTEMBER THE INDUSTRY HAD A 55DAY SUPPLY OF CARS AND A 61DAY SUPPLY OF LIGHT TRUCKS RELATIVELY LEAN LEVELS BY INDUSTRY STANDARDS ACCORDING TO ESTIMATES FROM WARD'S AUTOMOTIVE REPORTS AN INDUSTRY NEWSLETTER THUS BIG THREE AUTO MAKERS ARE SEEKING TO MAKE UP FOR PRODUCTION SHORTFALLS IN THE THIRD QUARTER SOME INDUSTRY ANALYSTS FORECAST ROBUST PRODUCTION PLANS FOR THE FIRST QUARTER OF 1994 AS PRODUCTION OF NEW MODELS COMES CLOSER TO CAPACITY AND OVERALL DEMAND STRENGTHENS WITH THE ECONOMY'S STEADY IMPROVEMENT THE INDUSTRY IS GOING TO BUILD OVER THREE MILLION VEHICLES IN THE FIRST QUARTER BECAUSE THEY DON'T HAVE ENOUGH INVENTORY OUT THERE SAID RONALD GLANTZ AN INDUSTRY ANALYST WITH DEAN WITTER DISCOVER & CO IN SAN FRANCISCO SUCH A LEVEL WOULD BE WELL ABOVE FIRSTQUARTER 1993 PRODUCTION OF MORE THAN 27 MILLION VEHICLES HERE ARE AUTO MAKER'S OUTPUT PLANS FOR THE FOURTH QUARTER 9311110070 931111 ABREAST OF THE MARKET STOCKS RISE SHARPLY ON PURCHASES OF TECHNOLOGY ISSUES CYCLICALS BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK BUYING IN TECHNOLOGY ISSUES AND CYCLICALS FUELED A SHARP STOCK MARKET RALLY DESPITE RENEWED WEAKNESS IN BONDS AFTER A TENTATIVE START TO THE SESSION FOLLOWING A SLIGHTLY TROUBLING REPORT ON CONSUMER PRICES AND A SLIDE IN BOND PRICES THE BUYING PRESSURE MOUNTED EARLY YESTERDAY AFTERNOON AIDED SEVERAL TIMES BY PROGRAM TRADING THE DOW JONES INDUSTRIAL AVERAGE FINISHED AT ITS SESSION HIGH UP 2348 POINTS OR 065 AT 366355 ECONOMICALLY SENSITIVE ISSUES WERE IN THE LEAD GENERAL MOTORS INCREASED 2 1/2 TO 51 1/8 BETHLEHEM STEEL JUMPED 1 1/4 TO 17 5/8 AND ALUMINUM CO OF AMERICA ROSE 1 3/8 TO 69 3/4 BROADBASED INDEXES MATCHED THE INDUSTRIAL AVERAGE'S GAIN ADVANCERS LED DECLINERS 1197 TO 864 ON THE NEW YORK STOCK EXCHANGE VOLUME ON THE EXCHANGE INCREASED TO 283370000 SHARES FROM 275860000 SHARES TUESDAY ANALYSTS SAID THE CONTINUED FLOW OF STRONG ECONOMIC NEWS HELPED TRIGGER YESTERDAY'S STRENGTH MOST IMPORTANT ESPECIALLY FOR THE TECHNOLOGY GROUP WAS A BETTERTHANEXPECTED READING ON SEMICONDUCTOR ORDERS FROM THE SEMICONDUCTOR INDUSTRY ASSOCIATION A TRADE GROUP CHIP STOCKS AND A WIDE RANGE OF OTHER COMPUTERRELATED ISSUES SURGED THE TECHNOLOGYWEIGHTED NASDAQ COMPOSITE INDEX OUTSTRIPPED THE GAINS OF OTHER MAJOR STOCK MARKET BAROMETERS RISING 666 POINTS OR 087 TO 77650 BIG GAINERS IN THE CHIP GROUP INCLUDED MOTOROLA WHICH ROSE 3 1/8 TO 102 7/8 TEXAS INSTRUMENTS WHICH INCREASED 4 TO 63 1/8 AND ADVANCED MICRO DEVICES WHICH CLIMBED 3/4 TO 19 5/8 ON THE NASDAQ STOCK MARKET INTEL ADVANCED 2 1/2 TO 63 1/2 WHILE APPLIED MATERIALS ROSE 3 1/4 TO 36 3/4 THE STANDARD & POOR'S 500STOCK INDEX INCREASED 339 OR 074 TO 46372 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX CLIMBED 160 OR 063 TO 25657 AND THE DOW JONES EQUITY MARKET INDEX GAINED 317 OR 073 TO 43856 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ADDED 068 OR 014 TO 47670 THOMAS GALLAGHER DIRECTOR OF CAPITAL COMMITMENT AT OPPENHEIMER & CO SAID THE MARKET'S STRENGTH IN THE FACE OF SHARP BOND MARKET LOSSES CAUSED SOME INVESTORS TO UNDO OR PARE THEIR SHORT POSITIONS OR BETS THAT THE MARKET WILL DECLINE THAT ACTIVITY ADDED TO THE AFTERNOON BUYING SPREE LONGTERM GOVERNMENT BONDS MEANWHILE FINISHED THE DAY WITH A LOSS OF ABOUT 3/4 POINT LIFTING THE YIELD ON THE 30YEAR TREASURY TO 620 GAIL DUDACK A MARKET STRATEGIST AT SG WARBURG & CO SAID RENEWED HOPES THAT CONGRESS WILL APPROVE THE NORTH AMERICAN FREE TRADE AGREEMENT ALSO CLEARED THE WAY FOR GAINS MANY SHE SAID VIEW VICE PRESIDENT AL GORE AS THE WINNER OF THE DEBATE TUESDAY NIGHT AGAINST NAFTA FOE ROSS PEROT THAT MIGHT HELP THE ADMINISTRATION WIN SUPPORT FOR THE TREATY IN CONGRESS FINANCIAL MARKETS ARE EXPECTED TO FALL IF NAFTA IS DEFEATED THE NAFTA NEWS LIFTED MEXICAN RELATED ISSUES AMERICAN DEPOSITARY RECEIPTS OF TELEFONOS DE MEXICO A TELEPHONE COMPANY RALLIED 1 7/8 TO 52 3/8 WHILE THOSE OF CONSORTIUM G DINA GROUP A HEAVY EQUIPMENT COMPANY ADDED 1 7/8 TO 20 7/8 GENERAL MOTORS WAS AIDED BY NEWS THAT ITS SHARES WERE ADDED TO A DONALDSON LUFKIN & JENRETTE RECOMMENDED LIST ANALYST JAMES ALEXANDRE SAID GM IS AGGRESSIVELY REDUCING ITS COSTS HE RAISED HIS EARNINGS ESTIMATES FOR THE COMPANY AND PREDICTED ITS STOCK WILL REACH 80 TO 90 IN THE NEXT TWO TO THREE YEARS STORAGE TECHNOLOGY CLIMBED 3 1/2 TO 29 3/4 KEMPER SECURITIES ANALYST JOE PAYNE SAID THE LOUISVILLE COLO COMPANY IS MAKING PROGRESS ON ITS LONGAWAITED ICEBERG COMPUTER DATA STORAGE SYSTEM HE SAID THE COMPANY MIGHT DELIVER ITS FIRST FULLY OPERATIONAL UNITS LATE THIS QUARTER OR EARLY IN 1994 MICROSOFT INCREASED 3 1/8 TO 81 3/8 ON NASDAQ AFTER MERRILL LYNCH & CO UPGRADED ITS INTERMEDIATETERM RATING ON THE REDMOND WASH SOFTWARE COMPANY TO ABOVE AVERAGE FROM NEUTRAL THE FIRM LEFT UNCHANGED ITS LONGTERM BUY OPINION INTERNATIONAL PAPER CLIMBED 1 1/8 TO 62 5/8 AND GEORGIAPACIFIC RALLIED 1 1/2 TO 67 1/2 GOLDMAN SACHS & CO ADDED THE FOREST PRODUCT PRODUCER'S SHARES TO ITS RECOMMENDED LIST GOLDMAN UPGRADED ITS OPINION OF DIAL CORP A FOOD AND SOAP MAKER TO TRADING BUY FROM MODERATE OUTPERFORMER IT JUMPED 1 1/4 TO 38 1/2 NEWS CORP SLIPPED 3 1/4 TO 53 THE AUSTRALIAN MEDIA COMPANY SAID ITS OPERATING PROFIT EXCLUDING UNUSUAL ITEMS ROSE 27 TO A246 MILLION US164 MILLION IN THE FISCAL FIRST QUARTER ENDED SEPT 30 IN US DOLLARS THOUGH ITS PROFIT BEFORE EXTRAORDINARY ITEMS SLIPPED TO 75 CENTS A SHARE FROM 79 CENTS A SHARE A YEAR EARLIER BELLSOUTH LOST 1 1/8 TO 57 1/8 THE ATLANTABASED TELEPHONE COMPANY SAID IT WILL TAKE A 12 BILLION RESTRUCTURING CHARGE THAT WILL REDUCE ITS FOURTHQUARTER EARNINGS BY 153 A SHARE THE CHARGE WILL COVER COSTS OF TECHNOLOGY IMPROVEMENTS AND JOB CUTS PACIFIC TELESIS INCREASED 3 1/8 TO 56 5/8 AFTER THE BABY BELL SAID IT WILL LAUNCH A NEW WIRELESS COMMUNICATIONS SERVICE INITIALLY IN THE SAN FRANCISCO AREA THAT WILL PROVIDE HIGHSPEED DATA TRANSMISSION SERVICES TO USERS OF LAPTOP COMPUTERS FAX MACHINES AND PERSONAL DIGITAL ASSISTANTS PRECIOUS METALS STOCKS GAINED ALONG WITH THE PRICE OF GOLD FOLLOWING THE CONSUMER PRICE REPORT HOMESTAKE MINING INCREASED 1 1/8 TO 20 7/8 NEWMONT MINING ROSE 1 5/8 TO 56 3/8 AND ON THE AMEX ECHO BAY MINES ADVANCED 3/8 TO 13 1/8 9311110069 931111 WORLD STOCK MARKETS MEXICAN STOCKS RALLY ON BULLISH NAFTA OUTLOOK BY CRAIG TORRES AND PAUL B CARROLL STAFF REPORTERS OF THE WALL STREET JOURNAL MEXICAN STOCK PRICES SOARED AND THE PESO ROSE AGAINST THE DOLLAR AS INVESTORS TURNED BULLISH ON THE OUTLOOK FOR THE NORTH AMERICAN FREE TRADE AGREEMENT'S APPROVAL TRADERS SAID MEXICAN INVESTORS WERE BUYING AS BUSILY AS FOREIGN INVESTORS IN THE BIG RALLY THAT SENT THE MEXICAN BOLSA'S IPC INDEX UP 8149 POINTS A RISE OF 42 THE INDEX CLOSED AT A NEW RECORD OF 203533 THE MEXICAN PESO RECOVERED STRONGLY YESTERDAY RISING 24 TO 320 PESOS PER DOLLAR THE PERCEPTION IS THAT THE POSSIBILITY OF NAFTA PASSING IS MUCH STRONGER AFTER THE DEBATE BETWEEN VICE PRESIDENT AL GORE AND ROSS PEROT TUESDAY NIGHT SAID JORGE SUAREZVELEZ MANAGING DIRECTOR AT AFIN SECURITIES NEW YORK A MEXICOBASED BROKERAGE HOUSE THE STOCK MARKET IS UP 4 AND THE PESO HAS REVALUED I WOULD SAY THAT'S A PRETTY GOOD INDICATION THAT GORE DID PRETTY WELL SAID TAMZIN HOBDAY A LATIN AMERICAN EQUITY STRATEGIST WITH BARING SECURITIES NEW YORK THE GAINS IN MEXICAN STOCKS WERE BROAD AND DIVERSIFIED ACROSS SECTORS IN NEW YORK THE AMERICAN DEPOSITARY SHARES OF TELEFONOS DE MEXICO ROSE 1 7/8 TO 52 3/8 GLASSMAKER VITRO GAINED 1 1/8 TO 17 1/2 AND COCACOLA FEMSA ADDED 2 TO 28 1/4 TODAY MEXICAN INVESTORS ARE MORE CONFIDENT ABOUT NAFTA'S PASSAGE SAID XAVIER GUTIERREZ GUAJARDO HEAD OF RESEARCH AT BROKERAGE HOUSE PROBURSA IN MEXICO CITY US INVESTORS BULLISH ON THE MEXICAN ECONOMY WITH OR WITHOUT THE FREETRADE TREATY SAW THE PESO'S DECLINE TUESDAY AS AN OPPORTUNITY TO PURCHASE MORE MEXICAN STOCKS AT A CHEAPER PRICE SORAYA BETTERTON MANAGER OF THE GT LATIN AMERICA GROWTH FUND BOUGHT MEXICAN SHARES TUESDAY AND YESTERDAY WITH OR WITHOUT NAFTA MEXICO IS GOING TO ATTRACT FOREIGN INVESTMENT SHE SAID WHAT HAPPENS IF NAFTA IS NOT APPROVED AND THE MARKET DECLINES YOU BUY THE BLAZES OUT OF IT SAID MS BETTERTON BECAUSE SHE BELIEVES MEXICO'S ECONOMIC REFORMS WILL CONTINUE EVEN WITHOUT THE TRADE TREATY ANOTHER ENCOURAGING SIGN CAME FROM TUESDAY'S AUCTION OF MEXICAN TREASURY BILLS OR CETES RATES ON 28DAY CETES FOR A MATURITY THAT SPANS THE NOV 17 VOTE ON NAFTA ROSE 377 PERCENTAGE POINTS TO 1723 BUT ONEYEAR CETES RATES ROSE ONLY 104 PERCENTAGE POINTS TO 1337 A SIGN THAT INVESTORS MAINTAIN LONGTERM CONFIDENCE IN MEXICO'S ECONOMIC POLICIES THERE WERE VERY STRONG BIDS IN THE AUCTION ALL THINGS CONSIDERED SAID JOHN LIEGEY PRESIDENT OF WESTON GROUP A NEW YORK INVESTMENT FIRM AND PESO DEALER A SHARP RISE IN OVERNIGHT INTEREST RATES TO AROUND 27 HELPED SUPPORT THE PESO IN YESTERDAY'S TRADING MR LIEGEY SAID BANCO DE MEXICO THE CENTRAL BANK MADE IT PUNITIVELY EXPENSIVE TO SPECULATE AGAINST THE PESO BY ALLOWING SHORTTERM RATES TO RISE HE SAID NO NEW MANAGEMENT BAND HAS EMERGED FOR THE CURRENCY TRADERS SAID SO TRADERS ARE FOCUSING ON THE BROAD BAND GOVERNED BY AN ECONOMIC PACT BETWEEN LABOR AND BUSINESS LEADERS AND THE GOVERNMENT THAT BAND WIDENS SLIGHTLY EVERY DAY TODAY THAT BAND SAYS THE PESO CAN FLOAT IN A RANGE OF 3310 PESOS PER DOLLAR TO 3052 PESOS PER DOLLAR THE MARKET SEEMS TO BELIEVE THE UPPER BAND OF 3310 IS CREDIBLE FOR THE TIME BEING SAID SERGIO SANCHEZ GARCIA HEAD OF RESEARCH AT MEXICAN BROKER INVERLAT NOBODY IS WILLING TO BET AGAINST THE PESO NOW IN THE SPOT MARKET BUT THE TRUE TEST OF THE CURRENCY AND STOCK MARKETS WILL COME AFTER THE NOV 17 US CONGRESSIONAL VOTE ON NAFTA IF THE PESO BREAKS THE BAND LIMIT IT BREAKS IN A BIG WAY SAYS MICHAEL PETTIS AN ANALYST AT WESTON GROUP HE THINKS THE PESO IS NEAR FAIR VALUE BUT HE ADDS CURRENCY MARKETS IGNORE THE FUNDAMENTALS WITH A BLITHENESS THAT IS IMPRESSIVE MR GUTIERREZ GUAJARDO OF PROBURSA WORRIES THAT IF NAFTA FAILS SHORTTERM RATES WILL CLIMB AND SEND STOCK PRICES SPIRALING LOWER THE STOCK MARKET IS DISCOUNTING LOWER REAL OR INFLATIONADJUSTED INTEREST RATES OF 4 IN 1994 HE SAYS REAL RATES COULD RISE TO 6 FROM 5 TODAY IF NAFTA DOESN'T PASS HE SAYS BUT MEXICAN BUSINEGSS LEADERS THINK THE MARKETS ARE CORRECT IN SIGNALING A LIKELY PASSAGE OF NAFTA SERGIO BERMUDEZ CHIEF EXECUTIVE OF GRUPO BERMUDEZ WHICH HAS INTERESTS IN DEVELOPMENT COMPANIES AND INDUSTRIAL PARKS ALONG THE MEXICANUS BORDER SAYS THE GOREPEROT DEBATE MADE HIM MORE OPTIMISTIC ABOUT THE PROSPECTS FOR PASSAGE OF NAFTA BECAUSE HE THOUGHT PEROT CAME OFF BADLY HE ALSO SAID THAT THE RECENT FLUCTUATIONS OF THE PESO WON'T AFFECT THE PLANS OF ANY OF THE COMPANIES THAT HAVE BEEN INVESTING IN THE BORDER MANUFACTURING REGION OF MEXICO VICTOR ALMEIDA CHIEF EXECUTIVE OF INTERCERAMIC A TILE MAKER BASED IN CHIHUAHUA MEXICO SAID MR PEROT LOOKED BAD MEAN AND DISRESPECTFUL OF THE VICE PRESIDENT I THOUGHT HE WOULD BE ABLE TO DO BETTER THAN HE DID BUT GORE HAD THE FACTS ON HIS SIDE INTERCERAMIC PLANS TO BUILD A NEW TILE PLANT NEAR DALLAS DESPITE THE PESO'S RECENT TUMBLE AND ALL THE UNCERTAINTY SURROUNDING NAFTA MR ALMEIDA IS PUSHING FORWARD IT MIGHT TAKE SIX MONTHS FOR THINGS TO SETTLE DOWN IF NAFTA DOESN'T HAPPEN AND FOR THE ECONOMY TO GET BACK TO NORMAL HE SAID BUT LIKE MANY INVESTORS IN MEXICAN STOCKS MR ALMEIDA IS BULLISH ON THE LONGTERM PROSPECTS OF MEXICO THE FUNDAMENTALS OF THE MEXICAN ECONOMY ARE STILL SO GOOD HE SAYS TOKYO STOCK PRICES FELL WEDNESDAY THOUGH LASTMINUTE COVERING OF SHORT POSITIONS AND BARGAIN HUNTING HELPED RESCUE THE BENCHMARK INDEX FROM LOWS LONDON SHARES EDGED UP BUT LOST EARLY GAINS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11051 UP 028 REFLECTING HIGHER ASIA/PACIFIC AND AMERICAN MARKETS AND LOWER EUROPEAN MARKETS SEMICONDUCTOR STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 19132 UP 603 OR 33 WITH ANALOG DEVICES OF THE US POSTING AN 11 GAIN IN LOCAL CURRENCY FINANCIAL SERVICES STOCKS TRAILED AT 12613 DOWN 271 OR 21 WITH FIRST NATIONAL FINANCE OF BRITAIN SLIDING 16 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH PLUMMETED 49945 POINTS TUESDAY EASED 400 TO 1812171 IN TRADING THURSDAY IN TOKYO THE NIKKEI ROSE 16132 POINTS TO CLOSE THE MORNING SESSION AT 1828303 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 380 MILLION SHARES DOWN FROM 3151 MILLION SHARES A DAY EARLIER THOUGH THE NIKKEI RECOUPED MOST OF ITS INTRADAY LOSSFROM A LOW OF 1781828LOSERS TROUNCED GAINERS 751290 THE NIKKEI PREVIOUSLY DROPPED BELOW 18000 IN MIDMARCH THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DECLINED 3905 POINTS TUESDAY FELL 998 TO 153478 THE NIKKEI SANK ON THE JAPANESE FINANCE MINISTER'S REMARKS THAT THE GOVERNMENT WASN'T CONSIDERING EMERGENCY STEPS TO SUPPORT THE STOCK MARKET AND THAT IT DIDN'T PLAN TO BOOST ALLOCATIONS OF PUBLIC PENSIONFUND MONEY FOR INVESTMENTS IN STOCKS HEAVY INDEXLINKED ARBITRAGE SELLING ALSO HURT PRICES BUT INVESTORS WHO PEGGED 18000 FOR THE NIKKEI'S BOTTOM MOVED TO COVER OVERSOLD POSITIONS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 25 POINTS TO 30985 LOSING MOST OF ITS 19POINT INTRADAY GAIN THE FT 30STOCK INDEX ADDED 34 POINTS TO 23427 VOLUME WAS 7781 MILLION SHARES COMPARED WITH 7755 MILLION SHARES A DAY EARLIER WITH LITTLE MARKETMOVING NEWS THE LONDON MARKET AGAIN TURNED FOR DIRECTION TO THE US WHERE THE GOVERNMENT'S CONSUMERPRICE REPORT WAS LESS ATTRACTIVE THAN ANTICIPATED THIS TOOK LONDON SHARES LOWER BUT BY THE CLOSE THEY WERE HELPED INTO POSITIVE TERRITORY BY WALL STREET'S RECOVERY IN FRANKFURT STOCKS CLOSED LITTLE CHANGED IN THIN DEALINGS DOMINATED BY PROFESSIONAL TRADERS THE DAX 30STOCK INDEX EDGED UP 101 POINTS TO 202384 BUT IN PARIS SHARES SLUMPED 12 AS THE US CONSUMERPRICE DATA PROVIDED AN EXCUSE TO DUMP STOCKS AHEAD OF THE FRENCH EXCHANGE'S HOLIDAY TODAY US NERVOUSNESS ABOUT A MODEST RECOVERY SPARKING INFLATION AND THUS HIGHER INTEREST RATES HAS SPILLED OVER INTO THE PARIS MARKET WHICH HOPES US GROWTH CAN HELP END FRANCE'S ECONOMIC SLUMP IN AMSTERDAM AFTER RECENT GAINS SHARES FELL BROADLY IN OPTIONSLED SELLING IN MILAN PRICES WERE DRAGGED LOWER ON CONTINUED PROFITTAKING FROM TELECOMMUNICATIONS STOCKS ON REPORTS OF MULTINATIONAL LONGDISTANCE TELEPHONE COMPETITION IN STOCKHOLM SHARES SANK AFTER A DISCOURAGING OPENING ON WALL STREET AND RELEASE OF THE US CONSUMERPRICE STATISTICS AND THE SUBSEQUENT RISE IN US AND EUROPEAN LENDING RATES BUT IN ZURICH STOCKS CLIMBED PACED BY BANKING SHARES ON EXPECTATIONS OF LOWER SWISS RATES IN SYDNEY STOCKS FELL FOR THE SEVENTH SESSION IN A ROW IN A PERSISTENT CORRECTION IN HONG KONG SHARES REBOUNDED 26 THE BEST PERFORMANCE IN SIX SESSIONS BUOYED PARTLY BY BULLISH POLITICAL RUMORS ON THE BRITISH COLONY'S FUTURE UNDER CHINESE RULE IN TAIPEI WHERE PRICES HAD DROPPED 26 OVER THE PREVIOUS FIVE TRADING DAYS STOCKS NARROWLY REBOUNDED IN WELLINGTON UNCERTAINTY ABOUT NEW ZEALAND'S NEW GOVERNMENT PUSHED SHARE PRICES DOWN SHARPLY 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 9311110068 931111 POLITICS & POLICY DEMOCRATS SEEK PROBE OF RACE IN NEW JERSEY BY GERALD F SEIB AND JAMES M PERRY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATS DEMANDED A FEDERAL INVESTIGATION INTO A CLAIM THAT THE CAMPAIGN OF REPUBLICAN NEW JERSEY GOVELECT CHRISTINE TODD WHITMAN USED MONEY TO KEEP BLACK VOTERS FROM THE POLLS THE WHITMAN CAMPAIGN FLATLY DENIED THE CLAIM MADE BY ITS OWN MANAGER ED ROLLINS THAT IT HAD DISTRIBUTED SOCALLED WALKINGAROUND MONEY TO BLACK MINISTERS OR THEIR FAVORITE CHARITIES IN RETURN FOR THE MINISTERS' HELP IN KEEPING DOWN BLACK TURNOUT BLACK MINISTERS ALSO DISPUTED THE CHARGE AND MR ROLLINS HIMSELF ISSUED A STATEMENT IN WHICH HE ESSENTIALLY RETRACTED HIS CLAIM MADE AT A BREAKFAST MEETING WITH REPORTERS ON TUESDAY I WENT TOO FAR MR ROLLINS SAID MY REMARKS LEFT THE IMPRESSION OF SOMETHING THAT WAS NOT TRUE AND DID NOT OCCUR STILL THE CLAIM THAT MONEY WAS USED TO KEEP VOTERS AWAY FROM THE POLLS HAS TARNISHED MRS WHITMAN'S UPSET VICTORY AFTER CONSISTENTLY TRAILING IN THE POLLS SHE NARROWLY DEFEATED DEMOCRATIC INCUMBENT GOV JIM FLORIO LOW TURNOUT AMONG BLACKS WHO TENDED TO VOTE FOR MR FLORIO WAS A MAJOR FACTOR IN COSTING HIM THE ELECTION EXIT POLLS INDICATED THAT BLACKS ACCOUNTED FOR JUST 8 OF THE TOTAL VOTE DOWN FROM 12 IN THE GOVERNOR'S ELECTION FOUR YEARS AGO NEW JERSEY'S STATE DEMOCRATIC PARTY IMMEDIATELY APPEALED FOR FEDERAL ACTION ON THREE FRONTS IT ANNOUNCED THAT IT HAD FILED A COMPLAINT WITH THE JUSTICE DEPARTMENT SEEKING AN INVESTIGATION A SEPARATE COMPLAINT WITH THE DEPARTMENT'S CIVILRIGHTS DIVISION AND A REQUEST IN NEW JERSEY FEDERAL COURT FOR AN INVESTIGATION THE PARTY'S STATE CHAIRMAN RAYMOND LESNIAK SAID DEMOCRATS AREN'T ASKING THAT THE ELECTION BE INVALIDATED BUT HE DIDN'T RULE OUT THAT POSSIBILITY IN THE MEANTIME THE ASSERTIONS OPENED THE DOOR FOR DEMOCRATS TO CHARGE THAT FOUL PLAY COST THEM THE MOST CLOSELY WATCHED ELECTION OF THE FALL IN WHICH PRESIDENT CLINTON'S TOP POLITICAL ADVISERS HAD INVESTED LARGE AMOUNTS OF TIME AND ENERGY AT A NEWS CONFERENCE IN WASHINGTON MR CLINTON RESPONDED EMOTIONALLY TO THE CONTROVERSY IF IT IS TRUE THEN IT WAS TERRIBLY WRONG FOR ANYONE TO GIVE MONEY TO ANYBODY ELSE NOT TO VOTE OR TO DEPRESS VOTER TURNOUT HE SAID AND IT WAS TERRIBLY WRONG FOR ANYONE TO ACCEPT THAT MONEY TO RENDER THAT NONSERVICE TO THIS COUNTRY PEOPLE HAVE DIED IN THIS COUNTRY GIVEN THEIR LIVES TO GIVE OTHER AMERICANS ESPECIALLY AFRICANAMERICANS THE RIGHT TO VOTE THE CONTROVERSY ERUPTED WHEN MR ROLLINS SAID THAT THE WHITMAN CAMPAIGN HAD APPROACHED BLACK MINISTERS WHO HAD ENDORSED MR FLORIO AND ASKED THEM DO YOU HAVE A SPECIAL PROJECT THEN MR ROLLINS SAID WE MADE CONTRIBUTIONS TO THEIR FAVORITE CHARITY IN RETURN HE SAID THE WHITMAN CAMPAIGN ASKED THE MINISTERS TO REFRAIN FROM TELLING THEIR CONGREGATIONS THAT IT'S YOUR MORAL OBLIGATION THAT YOU GO ON TUESDAY AND VOTE FOR JIM FLORIO MR ROLLINS SAID 500000 WAS USED IN THE EFFORT WHICH HE SAID SUPPRESSED THE FLORIO VOTE OFFICIALLY THE WHITMAN CAMPAIGN DECLARED YESTERDAY THAT IT'S ALL SIMPLY UNTRUE IT JUST DIDN'T HAPPEN ASSERTED WHITMAN SPOKESMAN CARL GOLDEN HE MAINTAINED THAT THE NEW JERSEY REPUBLICAN PARTY SPENT PERHAPS 60000 IN TRADITIONAL ELECTIONDAY TURNOUT EFFORTS WHICH INCLUDED DRIVING VOTERS TO THE POLLS AND PROVIDING POLL MONITORS SIMILARLY STEPHEN SALMORE A RUTGERS UNIVERSITY POLITICAL SCIENTIST AND CONSULTANT TO THE STATE REPUBLICAN COMMITTEE'S GETOUTTHEVOTE CAMPAIGN ASSERTED THAT THE ENTIRE CAMPAIGN COST 500000 ALL DIRECTED AT 200000 WHITE SUBURBAN VOTERS HE SAID THE STATE PARTY PAID STUDENTS 75 EACH ON ELECTION DAY TO HELP GET VOTERS TO THE POLLS MR ROLLINS HE SAID HAD NOTHING TO DO WITH THE EFFORT THIS IS BRAGGADOCIO MR SALMORE SAID OF THE ROLLINS CLAIM OF PAYMENTS TO BLACK MINISTERS IT'S THE KIND OF TALK YOU PICK UP AT MIDNIGHT IN A BARROOM I DON'T THINK IT HAPPENED AND BLACK MINISTERS IN NEW JERSEY ANGRILY DENOUNCED THE CHARGE THAT SOME OF THEIR COLLEAGUES HAD TAKEN MONEY TO HOLD DOWN THE VOTE MY IMPRESSION IS THAT MR ROLLINS SOUGHT TO ENHANCE HIS OWN CAREER AND TO PROMOTE HIMSELF IN TERMS OF MRS WHITMAN'S ELECTION AND DID THAT AT THE EXPENSE OF THE AFRICANAMERICAN CLERGY AND COMMUNITY WHICH I FIND REPREHENSIBLE AND ABSOLUTELY INCORRIGIBLE SAID REV REGINALD JACKSON CHAIRMAN OF THE POLITICAL ACTION COMMITTEE OF THE BLACK MINISTERS COUNCIL OF NEW JERSEY AND REV WILLIAM WATLEY PASTOR OF ST JAMES AME CHURCH IN NEWARK SAID EVERYBODY WHO I AM IN TOUCH WITH IS ASKING WHO GOT THE MONEY' NO ONE HAS THE FOGGIEST NOTION AND THE AFRICANAMERICAN CLERGY IN NEWARK IS A RELATIVELY SMALL COMMUNITY STILL THE STORY OF AN EFFORT TO SUPPRESS THE BLACK VOTE HAD BEEN CIRCULATED IN WASHINGTON POLITICAL CIRCLES IN THE PAST FEW DAYS AND THE NEW JERSEY DEMOCRATIC PARTY SAID A COURT HEARING HAS BEEN SCHEDULED FOR NEXT MONDAY TO HEAR THEIR ARGUMENTS FOR AN INVESTIGATION DOROTHY J GAITER IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9311110067 931111 LEISURE & ARTS TOP 10 PRIMETIME PROGRAMS COMPILED BY NIELSEN MEDIA RESEARCH COPYWRITE 1993 9311110066 931111 LETTERS TO THE EDITOR KIDS COAXED TO SPEND MONEY THEY DON'T HAVE I READ WITH AMUSEMENT THE CHARGE BY JIM RITTS WHITTLE COMMUNICATIONS' PRESIDENT FOR EDUCATIONALNETWORK AFFAIRS THAT MY ORGANIZATION'S CRITICISM OF CHANNEL ONE IS A CLASSIC CASE OF CULTURAL ELITISM WHITTLE TV NEWS POORER DISTRICTS LINKED IN STUDY OCT 19 OUR GRASSROOTS GROUP UNPLUG WHICH HAS A MAJORITY OF WOMEN AND YOUTH OF COLOR COMMISSIONED A STUDY OF CHANNEL ONE'S DEMOGRAPHICS EXACTLY BECAUSE WE WANTED TO DOCUMENT THAT WHITTLE'S INSCHOOL COMMERCIAL TV NEWS PROGRAM PUSHES JUNK FOOD AND DESIGNER SNEAKERS DISPROPORTIONATELY IN SCHOOLS WHERE STUDENTS CAN LEAST AFFORD SUCH PRODUCTS OUR STUDY BY UMASS/AMHERST FOUND THAT SCHOOLS WITH THE HIGHEST STUDENT POVERTY RATES ARE TWICE AS LIKELY TO SHOW CHANNEL ONE CLEARLY SCHOOLS THAT COULD AFFORD TO SAY NO TO CHANNEL ONE DID I DON'T CALL THAT A CHOICE AS A BLACK WOMAN RAISED BY PROUD PARENTS WHO HAVE A COMBINED EXPERIENCE OF MORE THAN 50 YEARS IN ACADEMIA IT IS MY BELIEF THAT EQUAL EDUCATION EVERYONE HAS EQUAL ACCESS TO TVS VCRS AND SATELLITE DISHES FOR ALL YOUTH WOULD BRIDGE THE GAPS BETWEEN ELITE AND POOR IN THIS COUNTRY I WOULD CHALLENGE WHITTLE TO COME UP WITH A WAY OF FINANCING TECHNOLOGY WITHOUT SELLING OUR POOREST STUDENTS' TIME 9311110065 931111 LETTERS TO THE EDITOR THE MALPRACTICE DAMAGES DEBATE I QUITE AGREE WITH FRANK CORNELIUS REGARDING THE UNFAIRNESS OF CAPS ON ECONOMIC DAMAGES BECAUSE THEY CAN RESULT IN INADEQUATE COMPENSATION OF INJURED PATIENTS MALPRACTICE DAMAGE CAPS WON'T HELP LETTERS TO THE EDITOR OCT 13 HOWEVER OUR 18YEAR EXPERIENCE IN CALIFORNIA TELLS US HOW SENSIBLE REFORM OF MALPRACTICE LAWS CAN WORK NOT JUST FOR DOCTORS AND HOSPITALS BUT MORE IMPORTANTLY FOR THE BENEFIT OF NEGLIGENTLY INJURED PATIENTS AND THE CENTERPIECE OF THE MICRA REFORMS IS A CAP ON NONECONOMIC DAMAGES OF 250000 MR CORNELIUS QUITE CORRECTLY ILLUSTRATES THE UNWORKABILITY OF CAPS ON ECONOMIC DAMAGES BY CITING A HYPOTHETICAL CASE OF A BRAINDAMAGED NEWBORN WHO IN INDIANA WOULD RECEIVE ABOUT ONEFOURTH OF THE COMPENSATION ACTUALLY NEEDED FOR LIFELONG CARE IN CALIFORNIA WHERE THERE IS NO CAP ON ECONOMIC DAMAGES ALL PAST MEDICAL AND RELATED COSTS ARE PAID UP FRONT BY PURCHASING AN ANNUITY HOWEVER ALL FUTURE DAMAGES ARE THEN PAID IN PERIODIC INSTALLMENTS AS NEEDED NONECONOMIC DAMAGES SUCH AS PAIN AND SUFFERING LOSS OF CONSORTIUM AND SO ON ARE THE WILD CARDS IN THE LITIGATION OF PERSONAL INJURY AND THIS IS ESPECIALLY TRUE IN MEDICAL LITIGATION WHAT A CAP ON NONECONOMIC DAMAGES ACCOMPLISHES IS 1 TO MAKE COURT AWARDS AND THEREFORE SETTLEMENTS MORE PREDICTABLE AND THEREFORE INSURABLE WITHIN AFFORDABLE POLICY LIMITS AND 2 TO RESTORE A LARGE MEASURE OF REASON AND STABILITY TO THE SETTLEMENT NEGOTIATIONS MR CORNELIUS'S OWN CASE TRULY ELICITS MY SYMPATHY AS IT WOULD A JURY'S I AGREE WITH HIM THAT CAPPING ECONOMIC DAMAGES IS UNJUST HOWEVER IF INDIANA HAD CAPPED ONLY NONECONOMIC DAMAGES AS IS THE CASE IN CALIFORNIA THE INJUSTICE DONE TO HIM WOULD NOT HAVE OCCURRED MR CORNELIUS MAKES THE CASE THAT HEALTH CARE COSTS IN INDIANA HAVE NOT BEEN CHECKED BY INDIANA'S MALPRACTICE REFORMS THIS IS NOT THE CASE IN CALIFORNIA IN FISCAL 1990 THE NATIONAL HEALTH CARE CONSUMER PRICE INDEX ROSE 93 IN CALIFORNIA IT ROSE 86 BY MULTIPLYING THE DIFFERENCE 07 BY TOTAL HEALTH CARE SERVICE COSTS FOR THAT YEAR AS PUBLISHED BY THE FAMILIES USA FOUNDATION IT CAN BE SHOWN THAT CALIFORNIANS SAVED 3856 MILLION LET FRANK CORNELIUS'S STORY BE THE FINAL WORD ON DAMAGE CAPS IN MALPRACTICE CASES THEY HAVE FAILED HE EXPLAINS HOW HE HIMSELF ONCE WORKED AS A LOBBYIST IN INDIANA ON BEHALF OF THE INSURANCE INDUSTRY PUSHING FOR REFORMS WITH THE UNFOUNDED PROMISE OF LOWER COSTS YET BETTER HEALTH CARE IN 1975 INDIANA ENACTED WHOLESALE REFORMS IT WASN'T UNTIL MR CORNELIUS HIMSELF BECAME A VICTIM THOUGH THAT HE FELT THE IMPACT OF HIS FALSE ARGUMENTS AND NOW DISABLED AND LEFT IN A WHEELCHAIR UNABLE TO WORK AS A RESULT OF A BOTCHED MEDICAL PROCEDURE MR CORNELIUS SO ELOQUENTLY NOW ARGUES THE REALITIES OF TORT REFORM IN HIS STATE HE WRITES ABOUT HOW THE REFORMERS PLAYED ON THE FEARS OF PEOPLE TO WIN THEIR ARGUMENT INDIANA THOUGH IS NOT ALONE ELECTED OFFICIALS IN COLORADO WHO ALSO PASSED MASSIVE REFORM MEASURES HAVE EXPRESSED SECOND THOUGHTS ON THE IMPACT OF THE CHANGES THEY ONCE SO VIGOROUSLY SUPPORTED THERE TOO ONLY AFTER THE REALITIES OF THE REFORMS BECAME WIDELY KNOWN THEY FIND THAT PLAINTIFFS WHO ARE THE VICTIMS OF NEGLIGENT MEDICAL PERSONNEL ARE NOT BEING FULLY COMPENSATED FOR THEIR MEDICAL BILLS LET ALONE FOR THEIR PAIN AND SUFFERING DISABILITY DISFIGUREMENT LOSS OF CONSORTIUM OR LOST EARNINGS THIS RESULT IS MORALLY OFFENSIVE IN NEW YORK A TORT REFORM PACKAGE WAS APPROVED IN 1985 UNDER THE GUISE OF LOWERING HEALTH CARE COST BUT NO APPRECIABLE MODERATING OF MEDICAL CHARGES HAS BEEN DETECTED SINCE THEN THE PROPONENTS OF TORT REFORM ARE ONLY TRYING TO PAVE THE WAY FOR EVEN LESS ACCOUNTABILITY ONLY THE ACTUAL WRONGDOERS REALLY BENEFIT FROM SUCH PROPOSED CHANGES AT THE VICTIM'S EXPENSE THE ISSUE IS HAVING A RATIONAL TORT SYSTEM FOR PERSONAL INJURY THAT MEETS THE VICTIM'S NEEDS WHILE ENCOURAGING OPTIMUM HEALTH CARE FRANK CORNELIUS IS CONFUSED ABOUT INDIANA'S MEDICAL MALPRACTICE ACT CONFUSED ABOUT THE PAST AND HIS ROLE AS AN INSURANCE LOBBYIST IN 1975 WHEN INDIANA'S MEDICAL MALPRACTICE ACT WAS PASSED CONFUSED ABOUT THE EFFECT THE ACT HAS HAD ON THE PEOPLE OF INDIANA IN 1975 MR CORNELIUS WAS INDEED EMPLOYED BY THE INSURANCE INSTITUTE OF INDIANA IN THAT CAPACITY HE DID NOT HOWEVER FIGHT TO ENACT INDIANA'S MEDICAL MALPRACTICE LAW AND CAP THE ROLE OF THE INSTITUTE DURING THE MEDICAL MALPRACTICE REFORM DEBATE WAS LIMITED TO PROVIDING INFORMATION TO LEGISLATORS UPON REQUEST WHILE WE THINK THE LEGISLATORS ACTED VERY RESPONSIBLY IN ENACTING THIS LAW AND WE CONTINUED TO THINK IT TO BE A VIABLE AND RESPONSIBLE LAW NEITHER THE INSTITUTE NOR ANY OF ITS EMPLOYEES WERE AT THE FOREFRONT OF LOBBYING FOR OR AGAINST IT AS FOR THE EFFECT OF INDIANA'S MEDICAL MALPRACTICE ACT IN 1991 A COMPREHENSIVE THREEYEAR STUDY OF THE ACT COMPARED INDIANA TO MICHIGAN AND OHIO THESE TWO NEIGHBORING STATES HAVE ADOPTED MALPRACTICE REFORMS ONLY SPORADICALLY AND NEVER HAVE IMPLEMENTED A DAMAGE CAP THE STUDY FOUND THE AMOUNT OF COMPENSATION TO CLAIMANTS WITH LARGE MALPRACTICE PAYMENTS IN INDIANA ON AVERAGE SUBSTANTIALLY HIGHER THAN IN MICHIGAN AND OHIO MOST IMPORTANTLY CLAIMANTS IN THE AGGREGATE ARE BETTER OFF BECAUSE THEY GET MORE COMPENSATION FOR THEIR INJURIES IT IS CRUCIAL TO REMEMBER THAT CLAIMANTS WHO RECEIVE LARGE MALPRACTICE PAYMENTS HAVE BEEN SERIOUSLY AND TRAGICALLY DAMAGED AND DESERVE THE COMPENSATION THEY RECEIVE ADD TO THIS THE FACT THAT THE STUDY FOUND THE INSURANCE PREMIUMS FOR MEDICAL MALPRACTICE INSURANCE HAVE REMAINED SOME OF THE LOWEST IN THE NATION SPECIFICALLY INDIANA PHYSICIANS PAY LOWER PREMIUMS COMPARED WITH PHYSICIANS IN NEIGHBORING STATES OHIO MICHIGAN ILLINOIS AND KENTUCKY THE STUDY CONCLUDED THAT INDIANA'S EXPERIENCE SHOULD CAUTION REFORMERS CRITICS AND OTHER OBSERVERS TO LOOK MORE CLOSELY AT THE DETAILED ASPECTS OF HOW A SYSTEM OPERATES IN PRACTICE BEFORE COMING TO INTUITIVELY APPEALING CONCLUSIONS ABOUT THE FAIRNESS OF APPARENTLY STRICT CHANGES IN THE COMMONLAW TORT SYSTEM SUCH AS DAMAGE CAPS OR THE APPROPRIATENESS OF MODIFYING THE CURRENT MEDICAL MALPRACTICE SYSTEM ALTHOUGH I CERTAINLY SYMPATHIZE WITH MR CORNELIUS IN THE INJURY THAT HE SUSTAINED THE IMPLICATION THAT HE IS ENTITLED TO COMPENSATION FROM THE MEDICAL COMMUNITY AS A RESULT OF THAT INJURY REPRESENTS ONE OF THE ROOTS OF THE MALPRACTICE CRISIS THAT NOW CONFRONTS OUR NATION WITH THE RAPID EXPANSION IN MEDICAL KNOWLEDGE AND TECHNOLOGY THE PUBLIC PERCEIVES THAT THE MEDICAL SYSTEM CAN CURE ANY ILLNESS PROLONG LIFE INDEFINITELY AND DO THIS ALL AT NO RISK TO THE PATIENT ANYTHING SHORT OF SUCH UTOPIAN ACCOMPLISHMENTS IS BY DEFINITION MALPRACTICE WITH CLOSE TO A MILLION LAWYERS IN THIS COUNTRY 40 TIMES AS MANY AS ARE IN JAPAN THERE IS NO SHORTAGE OF ATTORNEYS WHO ARE EAGER TO SUPPORT THAT CONTENTION THE OFTQUOTED FIGURE RELEASED BY THE CONGRESSIONAL BUDGET OFFICE THAT MEDICAL MALPRACTICE LITIGATION REPRESENTS LESS THAN 1 OF US HEALTH CARE SPENDING IS SPECIOUS THERE IS ABSOLUTELY NO WAY TO QUANTIFY SUCH COSTS ACCURATELY BUT AS A PRACTICING PHYSICIAN I WOULD CONSERVATIVELY GUESS THAT 30 OF THE MEDICAL COSTS RELATED TO MY PRACTICE ARE GENERATED AS A RESULT OF THE OMNIPRESENT CONCERN THAT SOME OBSCURE ILLNESS MAY BE MISSED AND THAT A MALPRACTICE SUIT WILL BE FILED AS A RESULT 9311110064 931111 BUSINESS BRIEF FLEMING COS MEGAFOODS STORES REACHES 400 MILLION SUPPLY PACT FLEMING COS OKLAHOMA CITY SAID IT HAD REACHED AN AGREEMENT IN PRINCIPLE WITH MEGAFOODS STORES INC A 26STORE GROCERY CHAIN BASED IN MESA ARIZ TO CONTINUE SUPPLYING EXISTING MEGAFOODS STORES IN THREE WESTERN STATES AND SUPPLY ALL FUTURE MEGAFOOD STORES INCLUDING FIVE EXPECTED TO OPEN BY YEAR'S END FLEMING ALSO SAID THAT UNDER THE PROPOSAL IT WILL BEGIN SUPPLYING MEGAFOODS' 15 TEXANS' WAREHOUSE STORES IN SAN ANTONIO TEXAS THE GROCERY WHOLESALER ESTIMATED THAT THE PACT IS EXPECTED TO REPRESENT ABOUT 400 MILLION IN SALES FLEMING HAD TOTAL 1992 SALES OF ABOUT 129 BILLION IN SEPTEMBER MEGAFOODS WHICH IS EXPECTED TO BUY ABOUT 200 MILLION IN PRODUCTS FROM FLEMING THIS YEAR THREATENED TO CANCEL ITS EXISTING PACT UNLESS FLEMING MATCHED THE PRICES OF SAFEWAY INC A PROPOSED NEW SUPPLIER MEGAFOODS SAID THAT FLEMING HAD AGREED TO MATCH THE SAFEWAY PROPOSAL 9311110063 931111 TECHNOLOGY BRIEF INTEL CORP COMPANY TO DOUBLE SIZE OF EXPANSION OF FACILITY INTEL CORP SAID IT PLANS TO MORE THAN DOUBLE THE SIZE OF A PLANNED EXPANSION OF ITS FOLSOM CALIF FACILITY THE SANTA CLARA CALIF CHIP MAKER SAID THE PROPOSED EXPANSION NOW ENVISIONS AN ENLARGED FACILITY COSTING 52 MILLION AND INVOLVING 1750 JOBS COMPARED WITH AN ORIGINAL PLAN THAT CALLED FOR A FACILITY COSTING 35 MILION AND ADDING 750 JOBS THE COMPANY EARLIER SAID THE NEW RESEARCH FACILITY MIGHT HAVE BEEN LOCATED AT OTHER CORPORATE SITES IN ARIZONA NEW MEXICO OR OREGON HOWEVER ONGOING EFFORTS BY THE STATE OF CALIFORNIA TO REDUCE THE COST OF BUSINESS THERE MADE ADDED EXPANSION IN FOLSOM A LOGICAL CHOICE SAID ROBERT H PERLMAN INTEL'S VICE PRESIDENT FINANCE GROUP 9311110062 931111 SMITH BARNEY MULLS SHEARING SHEARSON FROM OFFICIAL NAME LONGTIME LABEL MAY BE SHED AS NEW PARENT PRIMERICA TURNS INTO TRAVELERS CORP BY RICHARD T SILVERMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE NAME SHEARSON MAY JOIN THOSE ALREADY IN WALL STREET'S SCRAPHEAP LOEB RHOADES BACHE HUTTON UPHAM HALSEY KUHN AND HAMMILL OFFICIALS AT SMITH BARNEY SHEARSON INC THE NATION'S SECONDLARGEST SECURITIES FIRM ARE CONSIDERING DROPPING THE SHEARSON LABEL SPOKESMAN BOB CONNOR SAID IT'S BEING EXPLORED BUT NO DECISIONS HAVE BEEN MADE SMITH BARNEY SHEARSON IS A UNIT OF PRIMERICA CORP WHICH ITSELF PLANS TO CHANGE ITS NAME TO TRAVELERS CORP IN SEPTEMBER PRIMERICA AGREED TO PAY ABOUT 4 BILLION TO PURCHASE THE 73 OF TRAVELERS IT DIDN'T ALREADY OWN PEOPLE AT THE SECURITIES FIRM SAY THAT SHOULD THE DECISION BE MADE TO DROP THE SHEARSON NAME DOING IT AT THE SAME TIME THE PARENT CHANGES NAMES WOULD MAKE SENSE ACCORDING TO A PERSON CLOSE TO THE SITUATION THE DECISION TO DISCARD SHEARSON WOULD BE MADE FOR THE SAKE OF SIMPLICITY ADDING THAT SMITH BARNEY IS JUST A MORE COMMON NATURAL PHRASE IT IS THOUGHT THAT ULTIMATELY THE DECISION RESTS WITH PRIMERICA CHAIRMAN SANFORD WEILL WHO EARLIER THIS YEAR ENGINEERED THE SECURITIES INDUSTRY'S BIGGEST TAKEOVER EVER PRIMERICA'S PAYMENT TO AMERICAN EXPRESS CO OF 115 BILLION FOR THE RETAILBROKERAGE AND ASSETMANAGEMENT UNITS OF SHEARSON LEHMAN BROTHERS INC SHEARSON WAS THEN MERGED WITH PRIMERICA'S SMITH BARNEY HARRIS & UPHAM INC BROKERAGE SUBSIDIARY WHEN THE MERGER CLOSED AND THE NEW NAME WAS APPLIED THE HARRIS AND UPHAM WERE ERASED FROM SMITH BARNEY'S STATIONERY NOBODY EVER USED HARRIS AND UPHAM THE PERSON SAID SHEARSON IS A PARALLEL TO THAT MR WEILL IS SAID TO HAVE RESERVATIONS ABOUT DROPPING SHEARSON FROM THE FIRM'S NAME ACCORDING TO THE WALL STREET LETTER A TRADE PUBLICATION THAT FIRST REPORTED THE POSSIBLE NAME CHANGE DISCUSSION OVER WHETHER TO SIMPLY CALL THE FIRM SMITH BARNEY INC WAS FIRST BROACHED A FEW WEEKS AGO AT A MANAGERS COUNCIL MEETING SAID MR CONNOR THE SPOKESMAN AT THE MEETING HE SAID THE IMPRESSION WAS THAT THE FIRM'S PRESIDENT AND HEAD OF RETAIL JOSEPH PLUMERI DIDN'T OPPOSE THE NAME CHANGE MR PLUMERI WHO JOINED SMITH BARNEY FROM SHEARSON AS PART OF THE ACQUISITION WAS UNAVAILABLE FOR COMMENT SHOULD SHEARSON DISAPPEAR FROM THE WALL STREET LANDSCAPE IT WOULD END A 91YEAR TRADITION THAT SPANNED EIGHT NAMECHANGES SHEARSON WAS BEGUN IN 1902 AS SHEARSON HAMMILL & CO BY ED SHEARSON A CANADIAN BROKERAGE EXECUTIVE SHEARSON HAMMILL REMAINED INTACT UNTIL 1974 WHEN HAYDEN STONE BOUGHT IT AND CHANGED THE NAME TO SHEARSON HAYDEN STONE IN THE MEANTIME THE FIRM HAS BEEN KNOWN AS SHEARSON LOEB RHOADES 1979 SHEARSON/AMERICAN EXPRESS 1981 SHEARSON LEHMAN/AMERICAN EXPRESS 1984 SHEARSON LEHMAN BROTHERS 1985 AND SHEARSON LEHMAN HUTTON 1988 IN 1990 THE FIRM REVERTED TO SHEARSON LEHMAN BROTHERS WHICH IS HOW IT STAYED UNTIL SMITH BARNEY CAME CALLING 9311110061 931111 TRAVEL THANKSGIVING OFFERS A BUFFET OF TRAVEL DEALS BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL AIRLINES AND OTHER TRAVEL COMPANIES CAN NO LONGER LOOK FORWARD TO A FREE LUNCH AT THANKSGIVING THE NOVEMBER HOLIDAY MARKS THE HEAVIEST TRAVEL WEEKEND OF THE YEAR TRADITIONALLY PROVIDING A BONANZA FOR AIRLINES BUT WITH SLUGGISH GROWTH IN BOTH AIR TRAVEL AND THE ECONOMY THIS YEAR THE AIRLINES HAVE HAD TO OFFER MORE DISCOUNTS AND DROP BLACKOUT DATES THE DAYS EXCLUDED FROM PROMOTIONS TO ATTRACT TRAVELERS MEANWHILE HOTELS WHOSE BUSINESS USUALLY DECLINES AT THANKSGIVING ARE OFFERING INCENTIVES TO HOLIDAY TRAVELERS TO CHECK IN RATHER THAN STAY WITH RELATIVES EVEN BUDGET RENT A CAR HAS LAUNCHED A HOME FOR THE HOLIDAYS PROMOTION THAT INCLUDES ITS FIRST FREE RENTAL DAY ON TUESDAY NOV 23 WITH THANKSGIVING JUST TWO WEEKS AWAY THE HOLIDAY MARKETING PUSH MEANS THAT TRAVEL DEALS ARE STILL AVAILABLE FOR CONSUMERS AND MORE MAY BE ON THE WAY THERE IS STILL ROOM FOR A THANKSGIVING FARE WAR SAYS TOM PARSONS PUBLISHER OF BEST FARES MAGAZINE HE BASES HIS PREDICTION PARTLY ON THE FACT THAT TICKET PRICES HAVE RISEN 20 TO 25 SO FAR THIS YEAR COMPARED WITH A YEAR AGO LEAVING A CUSHION FOR FURTHER DISCOUNTS HE ALSO BELIEVES THAT RECENT PROMOTIONS HAVEN'T STIMULATED ENOUGH DEMAND MEANING ONE OF THE CARRIERS MAY HIT THE PANIC BUTTON USAIR GROUP INC FOR ONE HAS ALREADY STARTED DROPPING RESTRICTIONS ON REDUCEDFARE TICKETS THE AIRLINE RECENTLY EASED THE RULES ON ITS DEEPDISCOUNT FARES ALLOWING TRAVELERS TO FLY ON THE TUESDAY OR WEDNESDAY BEFORE THANKSGIVING AND RETURN THE FRIDAY AFTER BEFORE THE CHANGE THE LOWER FARES HAD REQUIRED SATURDAY OR SUNDAY STAYOVERS WHITTLING AWAY AT FLIGHT RESTRICTIONS AROUND HOLIDAYS ISN'T NEW BUT THE AIRLINES USUALLY PLAY A GAME OF MARKETING CHICKEN LETTING THE HOLIDAY GET CLOSER AND CLOSER AND TRYING NOT TO BE THE FIRST TO FLINCH ON PRICE OR RESTRICTIONS IT ONLY TAKES ONE AIRLINE TO ALLEVIATE SOMETHING LIKE BLACKOUT RULES AND THE OTHERS HAVE TO FOLLOW SAYS SCOTT PINHEIRO A VICE PRESIDENT OF SANTA CRUZ TRAVEL INC IN SANTA CRUZ CALIF THIS YEAR THERE WERE EARLY SIGNALS THAT THE AIRLINE INDUSTRY EXPECTED SLIMMER PICKINGS FOR THANKSGIVING AS FAR BACK AS AUGUST DELTA AIR LINES LAUNCHED A FALL SALE WHICH HAS SINCE EXPIRED THAT CUT DOMESTIC FARES ABOUT 30 AND DIDN'T INCLUDE THE USUAL BLACKOUT DAYS AROUND THANKSGIVING THE EARLIER MORE AGGRESSIVE PROMOTIONS HAVE APPARENTLY BEEN AIMED AT A SHRINKING POOL OF TRAVELERS OVER A SEVENDAY PERIOD AROUND THANKSGIVING THE AIR TRANSPORT ASSOCIATION AN INDUSTRY TRADE GROUP FORECASTS A 7 DECLINE IN PASSENGERS FROM A YEAR EARLIER TO 85 MILLION ON THE HEAVIEST TRAVEL DAY MOREOVER PLANES PROBABLY WON'T BE AS PACKED ON THE SUNDAY AFTER THANKSGIVING THE AIRLINES' LOAD FACTOR OR THE PROPORTION OF SEATS FILLED WILL DROP TO 783 FROM 81 A YEAR EARLIER THE ASSOCIATION PREDICTS ALSO WITH A STRIKE THREATENED BY FLIGHT ATTENDANTS AT AMERICAN AIRLINES OWNED BY AMR CORP SOME TRAVELERS ARE DOUBLEBOOKING ON AMERICAN AND ANOTHER CARRIER LEAVING AIRLINE MARKETERS WONDERING HOW MUCH THEIR OWN RESERVATIONS ARE BEING ARTIFICIALLY INFLATED DELTA FOR INSTANCE HAS SPOTTED AN UNUSUALLY HIGH NUMBER OF NOSHOWS OF THE 280000 PASSENGERS BOOKED ONE DAY LAST WEEK ONLY 225000 ACTUALLY FLEW SOME PORTION OF WHOM INCLUDED AMERICAN DOUBLEBOOKERS SAYS A DELTA SPOKESMAN THE NOSHOWS REPRESENTED NEARLY 20 OF BOOKINGS TWICE THE TYPICAL RATE OTHER TRAVELERS ARE AVOIDING AMERICAN ALTOGETHER SAY TRAVEL AGENTS WHICH MEANS AMERICAN'S BOOKINGS MAY FALL BEHIND IF AMERICAN CAN AVERT A STRIKE BEFORE THANKSGIVING THE CARRIER MAY FEEL PRESSURE TO CUT FARES TO RECAPTURE ANY LOST BUSINESS AMERICAN SAYS THAT ITS BOOKINGS ARE NORMAL FOR THIS TIME OF YEAR AND THAT IT HASN'T DETECTED ANY IMPACT BECAUSE OF THE STRIKE THREAT TRAVEL AGENTS SAY THIS YEAR'S PRECARIOUS ENVIRONMENT IS ALREADY PROVIDING HOLIDAY TRAVELERS IN SOME MARKETS WITH SURPRISINGLY LOW THOUGH UNADVERTISED FARES CLICKING AWAY AT HER RESERVATIONS COMPUTER BERNICE ROSMARIN OF STRATTON TRAVEL IN FRANKLIN LAKES NJ FINDS A SPECIAL HOLIDAY FARE OF 219 FOR A ROUND TRIP BETWEEN NEWARK NJ AND CHICAGO ON UNITED AIRLINES THE UAL CORP UNIT PASSENGERS HAVE TO BOOK SEVEN DAYS IN ADVANCE BUT THEY CAN FLY OUT THE WEDNESDAY BEFORE THANKSGIVING AND RETURN THAT FRIDAY THAT'S KIND OF WILD SAYS MS ROSMARIN OF THE LOW FARE BUT ONCE THE PLANE TAKES OFF THAT EMPTY SEAT IS LOST MONEY FOR THE AIRLINE IN THE PAST WEEK TRANS WORLD AIRLINES CUT ITS ROUNDTRIP FARE ON SAN FRANCISCONEW YORK FLIGHTS TO 408 FROM 451 REQUIRING A SEVENDAY ADVANCE PURCHASE BUT IMPOSING NO BLACKOUT RESTRICTIONS AROUND THANKSGIVING THE CHANGE PROMPTED OTHER CARRIERS TO CUT THEIR PRICES AS WELL HOTELS ARE ALSO BATTLING HOLIDAY VACANCIES WITH DISCOUNTS AND TARGETED MARKETING THIS MONTH MARRIOTT CORP'S COURTYARD HOTELS BEGAN OFFERING WEEKEND DISCOUNTS WITH MOST OF ITS PROPERTIES OFFERING ROOMS FOR 39 TO 49 A NIGHT ABOUT 25 BELOW REGULAR RATES RADISSON HOTELS IS STARTING A FALL PROMOTION THAT INCLUDES THE THANKSGIVING WEEKEND THE HOTELS HOPE TO CAPITALIZE ON THE GROWING PREFERENCE FOR SHORTER VACATIONS AND A NASCENT THANKSGIVINGVACATION MARKET THANKSGIVING IS BECOMING MORE OF A MINIESCAPE SAYS A SPOKESMAN FOR THE AMERICAN AUTOMOBILE ASSOCIATION WHICH FORECASTS HOLIDAY TRAVEL TRENDS MOTHER DOESN'T WANT TO BASTE THE TURKEY SO MORE AND MORE PEOPLE ARE TAKING A FAMILY HOLIDAY SAYS JEANNE EPPING A SENIOR VICE PRESIDENT OF THE AMERICAN SOCIETY OF TRAVEL AGENTS HOTELS ARE KEYING INTO THAT 9311110060 931111 TECHNOLOGY & HEALTH BORLAND'S QUATTRO PRO 50 IS SELLING LIKE HOTCAKES' SCOTTS VALLEY CALIF BORLAND INTERNATIONAL INC SEEMS TO BE MAKING HEADWAY IN ITS BARGAINBASEMENT ATTACK ON THE COMPUTERSPREADSHEET MARKET BORLAND'S QUATTRO PRO 50 PROGRAM INTRODUCED AT AN INDUSTRYROCKING PRICE OF 4995 IN LATE AUGUST WAS EXPECTED TO SELL 500000 COPIES BY JAN 15 BUT THE COMPANY HIT THAT TARGET IN JUST SIX WEEKS SAID PHILIPPE KAHN BORLAND'S CHIEF EXECUTIVE OFFICER OUR NUMBERS ARE STAGGERING HE SAID IN AN INTERVIEW THIS PROGRAM IS SELLING LIKE HOTCAKES MR KAHN DIDN'T QUANTIFY TOTAL SALES OF THE PROGRAM TO DATE BUT HE HAS TOLD ANALYSTS THAT HE WOULDN'T BE SURPRISED TO REACH ONE MILLION COPIES SOLD BY JANUARY IN 1992 BORLAND SOLD ONE MILLION COPIES OF THE SPREADSHEET FOR THE ENTIRE YEAR THOSE SALES SHOULD BOOST BORLAND'S MARKETSHARE POSITION AGAINST LOTUS DEVELOPMENT CORP'S 123 PROGRAM AND MICROSOFT CORP'S EXCEL BORLAND'S AGGRESSIVE STRATEGY WHICH REDUCED THE PRICE OF QUATTRO PRO TO 4995 FROM 9995 WAS CONTROVERSIAL BECAUSE OF THE IMPACT ON PROFIT MARGINS 9311110059 931111 BUSINESS BRIEF CHARLES SCHWAB & CO AVERAGE DAILY TRADING ROSE TO RECORD LEVEL IN OCTOBER CHARLES SCHWAB & CO SAN FRANCISCO SAID ITS AVERAGE DAILY TRADING ROSE TO A RECORD 40600 TRADES LAST MONTH REFLECTING THE SUCCESS OF ITS 16MONTH OLD ONESOURCE PROGRAM ALLOWING INVESTORS TO BUY NOLOAD MUTUAL FUNDS WITHOUT PAYING TRANSACTION FEES THE DISCOUNT BROKER SAID ITS AVERAGE DAILY TRADING IN OCTOBER ROSE 10 FROM THE PREVIOUS MONTH TRADES OF NOLOAD MUTUAL FUNDS THROUGH ITS ONESOURCE PROGRAM CLIMBED TO A RECORD 9900 TRADES UP 87 SINCE JUNE IN JULY SCHWAB MORE THAN DOUBLED TO 202 THE NUMBER OF NOLOAD MUTUAL FUNDS IT OFFERS TO TRADE FOR INVESTORS WITHOUT TRANSACTION FEES AS THE MARKET REACHED NEW HIGHS SCHWAB'S CLIENT EQUITY INCREASED NEARLY 46 TO A RECORD 911 BILLION IN OCTOBER THE BROKER HAS MORE THAN 24 MILLION ACTIVE ACCOUNTS 9311110058 931111 BUSINESS BRIEF TRIZEC CORP COMPANY CREDITORS SEEK TO EXTEND TALKS ON DEBT TRIZEC CORP SAID IT AND A GROUP OF ITS SENIOR CREDITORS WILL SEEK APPROVAL FROM AN ALBERTA COURT TO EXTEND NEGOTIATIONS ON THE COMPANY'S 19 BILLIONCANADIANDOLLAR US15 BILLION DEBT RESTRUCTURING PLAN THE REALESTATE CONCERN SAID THE PROPOSED EXTENSION REFLECTS THE SIZE AND COMPLEXITY OF THE COMPANY'S OPERATIONS AND THE DESIRE OF THE DEBT HOLDERS COMMITTEE TO FULLY UNDERSTAND THE RAMIFICATIONS OF THE RESTRUCTURING TRIZEC SAID THAT IT HOPES TO REACH AN AGREEMENT IN PRINCIPLE WITH THE CREDITORS BY THE END OF THE YEAR BUT THAT THE PARTIES MIGHT CHOOSE TO SEEK A FURTHER EXTENSION PREVIOUSLY TRIZEC HAD PLANNED TO CONCLUDE THE RESTRUCTURING BY EARLY DECEMBER TRIZEC OF CALGARY ALBERTA IS 52HELD BY THE GROUP OF COMPANIES CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN 9311110057 931111 MARKETING & MEDIA FCC EXTENDS CABLE RATE FREEZE WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION WILL EXTEND UNTIL FEB 15 A FREEZE ON CABLETELEVISION RATES HOWEVER THE ACTION WILL FORCE CABLE COMPANIES TO RESPOND TO CONSUMER COMPLAINTS OF RATE INCREASES STARTING MONDAY THE FREEZE ALREADY EXTENDED ONCE SINCE BEING ISSUED IN APRIL WAS DUE TO EXPIRE MONDAY THE ADDITIONAL DELAY WAS WIDELY EXPECTED BECAUSE MOST LOCAL GOVERNMENTS HAVEN'T EARNED CERTIFICATION TO ENFORCE NEW FEDERAL RATE REGULATIONS UNDER THE 1992 CABLE ACT LOCAL AUTHORITIES MUST MONITOR THE RATES OF BASIC CABLE SERVICE 9311110056 931111 BUSINESS BRIEF NEC CORP PRICES ARE CUT ON LOW END OF PERSONALCOMPUTER LINE NEC CORP TOKYO UNDER SIEGE BY US PERSONALCOMPUTER MAKERS IN ITS HOME MARKET CUT PRICES ON THE LOW END OF ITS PC LINEUP IN JAPAN BY ROUGHLY 20 EVER SINCE US MAKERS LED BY COMPAQ COMPUTER CORP STARTED A PC PRICE WAR IN JAPAN LATE LAST YEAR NEC HAS BEEN UNDER INCREASING PRESSURE TO MATCH THEIR PRICES AND ADOPT THE US PC STANDARD NEC CURRENTLY CONTROLS MORE THAN HALF THE JAPANESE MARKET WITH PCS THAT AREN'T COMPATIBLE WITH THOSE SOLD BY US COMPANIES THE LATEST CUT IS ONLY NEC'S SECOND SINCE THE PRICE WAR BEGAN NEC'S FIRSTQUARTER PC SHIPMENTS IN JAPAN SURGED NEARLY 10 FROM THE YEAREARLIER PERIOD AFTER THE FIRST PRICE CUT IN JANUARY BUT THEN FELL 4 IN THE SECOND QUARTER NEC'S LATEST PRICE CUTS NEARLY ELIMINATE THE COMPANY'S PRICE PREMIUM OVER ITS US COMPETITORS WHICH IT HAS LONG RELIED ON TO GENERATE HIGH PROFITS FROM PC SALES 9311110055 931111 REVIEW & OUTLOOK EDITORIAL PESO MOVES NORTH WE INTERRUPT THE PEROTGORE HAGGLING TO BRING YOU A MESSAGE FROM THE FINANCIAL MARKETS THE US CONGRESS DROVE THE MEXICAN PESO DOWN BY 4 IN TUESDAY'S TRADING PROVIDING A WHIFF OF WHAT MIGHT HAPPEN IF NAFTA IS ULTIMATELY DEFEATED THE LAST TIME THE PESO TANKED BACK IN 1982 IT NEARLY TOOK THE US BANKING SYSTEM WITH IT THANKFULLY THIS IS NOT 1982 FOR ALL THE CURRENT GRUMBLING ABOUT THE US ECONOMY IT DOES NOT FACE THE INFLATIONARY RECESSION IT DID THEN IN 1982 MEXICO WAS DEVALUING AFTER AN OIL BINGE AND NATIONALIZING BANKS TODAY ITS ECONOMY IS IN THE HANDS OF A WORLDCLASS TEAM BUT THE FINANCIAL MARKETS MAKE CLEAR THAT THE ISSUE IN NAFTA IS NOT WHETHER THE TWO ECONOMIES SHOULD BE INTEGRATED THEY ALREADY ARE INTEGRATED THE ISSUE IS HOW TO MANAGE INTERDEPENDENCE LET NO BALKLY CONGRESSMAN OR BONEHEADED BILLIONAIRE IMAGINE THAT A RUN ON THE PESO WOULD NOT BE FELT NORTH OF THE RIO GRANDE TO BEGIN WITH US CITIZENS OWN BIG HUNKS OF MEXICO THE BANK OF MEXICO SAYS MORE THAN 45 OF MEXICAN DEBT IS HELD BY FOREIGNERS SURELY MASSIVELY CONCENTRATED IN THE US LIKEWISE 25 OF THE CAPITALIZATION OF MEXICAN EQUITIES THOSE INVESTMENTS WHICH MAY BE HELD BY JOHN DOE'S PENSION FUND FOR EXAMPLE WERE WORTH 4 LESS TUESDAY NIGHT THAN THEY WERE TUESDAY MORNING FOR IN ITS WISDOM THE HOUSE OF REPRESENTATIVES MAY PULL THE RUG OUT FROM UNDER A DEAL ALREADY STRUCK WHEN THE INVESTMENTS WERE MADE THIS IS ONLY THE TIP OF AN ICEBERG AS WE LEARNED IN 1982 AMERICAN BANKS HAD LENT HEAVILY TO THE MODERN AND EFFICIENT INDUSTRIAL CONGLOMERATES IN MONTERREY BUT IN MEXICO CITY THE GOVERNMENT HAD BET HEAVILY ON AN EVERINCREASING PRICE OF OIL THE OIL PRICE COLLAPSED THANKS PRINCIPALLY TO PAUL VOLCKER'S TIGHTENING OF MONETARY POLICY AND THE LOPEZ PORTILLO REGIME DEVALUED THE PESO EVEN THE MOST PROMISING MEXICAN COMPANIES WERE LEFT WITH THEIR DEBTS IN DOLLARS AND THEIR INCOME STREAMS IN NEWLY DEVALUED PESOS GRUPO INDUSTRIAL ALFA THE MOST PROGRESSIVE COMPANY IN MEXICO WAS FORCED INTO DEFAULT ALFA'S DEBT INEVITABLY WAS OWNED BY US FINANCIAL INSTITUTIONS FOR EXAMPLE CITIBANK AND CONTINENTAL ILLINOIS EACH HELD MORE THAN 100 MILLION THE LOSS OF WHICH WOULD IMPAIR THEIR SOLVENCY AND ABILITY TO FINANCE US BUSINESS CHAIRMAN VOLCKER QUICKLY PERCEIVED THAT IF HE LOST MEXICO HE WOULD LOSE THE BANKING SYSTEM BY THE END OF APRIL THE FED FELT FORCED TO LOAN THE BANK OF MEXICO 600 MILLION TO SLOW THE PESO'S PLUNGE IN TURN MEXICAN DISTRESS WAS THE FIRST SIGN THAT THE FED HAD PUSHED TIGHT MONEY AS FAR AS IT SAFELY COULD MUCH WAS LEARNED FROM THIS EPISODE IN RETROSPECT IT'S CLEAR THAT IT WAS TIME TO RELAX MONETARY POLICY AND LET THE US ECONOMY GROW THE 19811982 RECESSION ENDED IN NOVEMBER AND INFLATION CONTINUED TO DECLINE AS RECOVERY STARTED IN MEXICO THE EPISODE WAS THE END OF A TRADITIONALLY CLOSED ECONOMY AND THE BEGINNING OF ITS OPENING TO THE WORLD THE DE LA MADRID GOVERNMENT JOINED THE GATT AND THE SALINAS GOVERNMENT NOW CONDUCTS AN AGGRESSIVE FREEMARKET POLICY AND HAS EDGED TOWARD A MORE OPEN POLITICAL ORDER AS WELL IN STRICTLY FINANCIAL TERMS WE HAVE NO DOUBT THAT US BANKS ARE MORE CAREFULLY DIVERSIFIED AND ANTICIPATING PROBLEMS SUCH AS TUESDAY THE BANK OF MEXICO HAS HOARDED MORE THAN 20 BILLION IN FOREIGN EXCHANGE RESERVES A BIG DAMPER ON SPECULATION AGAINST THE PESO AFTER FALLING 5 THE PESO STARTED TO RECOVER TUESDAY AFTERNOON AND GAINED FURTHER YESTERDAY THE 1982 EPISODE ALSO CARRIED A LESSON OF INTERDEPENDENCE WHETHER THIS HAS BEEN LEARNED WE WILL SEE IN NEXT WEDNESDAY'S VOTE MEXICO'S OIL REVENUES WERE DEPENDENT ON US MONETARY POLICY THE US BANKING SYSTEM WAS DEPENDENT ON MEXICO'S ABILITY TO SERVICE DEBT RECOVERY IN MEXICO WAS DEPENDENT ON AN OPEN ECONOMY GROWTH IN THE US WAS DEPENDENT ON FINANCIAL HEALTH IN ITS ECONOMIC MANAGEMENT THE US COULD NOT IGNORE MEXICO ANY MORE THAN IT COULD IGNORE MICHIGAN OR PENNSYLVANIA WHETHER YOU LIKE THIS STATE OF AFFAIRS IS QUITE IRRELEVANT AS ONE CALLER ASKED MR PEROT WHAT IS THE ALTERNATIVE HE AND PAT BUCHANAN AND LANE KIRKLAND MIGHT LIKE TO BATTEN DOWN THE BORDERS AND AVOID ECONOMIC ENTANGLEMENTS THEY MAY AS WELL SNARL AT THE LAW OF GRAVITY I'M FOR GRAVITY BUT NOT THIS GRAVITY THE DAY IS LONG PAST IF INDEED IT EVER EXISTED WHEN THE US ECONOMY COULD PROSPER IN ISOLATION INTERDEPENDENCE IS LESS DISRUPTIVE IF ARTIFICIAL BARRIERS ARE PARED AWAY OUR POLITICAL LEADERS LEARNED THIS FROM THE WORLD TRADE COLLAPSE WE CALL THE GREAT DEPRESSION ECONOMISTS KNEW IT EVEN BEFORE AND TRIED TO STOP THE SMOOTHAWLEY TARIFF SINCE WORLD WAR II WE HAVE BEEN ON A STEADY MARCH TOWARD PROGRESSIVELY LOWER TRADE BARRIERS THE NEXT STEP IS A NEW AGREEMENT AMONG THE CONSUMMATELY INTERDEPENDENT ECONOMIES OF NORTH AMERICA WE CAN ONLY START BACKWARD AT OUR PERIL AND TUESDAY'S DROP IN THE PESO SUGGESTS THE PERIL MAY BE CLOSER THAN MOST IMAGINE 9311110054 931111 BUSINESS BRIEF CYPRUS MINERALS CO COMPANY CONFIRMS SOLO BID FOR COPPER PROJECT IN PERU CYPRUS MINERALS CO CONFIRMED PERUVIAN REPORTS THAT THE COPPER AND COAL MINING COMPANY HAD MADE THE ONLY BID FOR THE CERRO VERDE COPPER PROJECT IN SOUTHERN PERU WIRE SERVICE REPORTS OUT OF PERU INDICATED THAT CYPRUS'S SOLO BID OF 37 MILLION CASH FOR THE PROPERTY NOW HELD BY STATEOWNED EMPRESSA MINERA DEL PERU SA WOULD VIRTUALLY GUARANTEE THAT CYPRUS WOULD WIN CONTROL OF THE PROJECT CYPRUS IN DENVER ALSO PLEDGED TO SPEND 485 MILLION IN UPGRADING AND EXPANDING THE OLD SILVER MINE WIRESERVICE REPORTS OUT OF LIMA SAID THE CERRO VERDE DEPOSIT IS THE THIRD STATE MINING INTEREST PRIVATIZED THIS MONTH AS PART OF A PROGRAM TO SHED SOME 80 STATE COMPANIES BEFORE 1995 CYPRUS'S INVESTMENT WOULD LIFT PERU'S COPPER PRODUCTION BY ABOUT A THIRD IT IS CURRENTLY ABOUT 300000 METRIC TONS A YEAR 9311110053 931111 BUSINESS BRIEF TELEBIT CORP COMPANY PLANS A CHARGE IN 3RD PERIOD TO SETTLE SUIT TELEBIT CORP CHELMSFORD MASS SAID IT PLANS TO TAKE A CHARGE OF 14 MILLION OR 11 CENTS A SHARE FOR THE THIRD QUARTER IN ORDER TO SETTLE A LAWSUIT BROUGHT BY PARADATA COMPUTER NETWORKS INC TELEBIT A MAKER OF DATATRANSMISSION PRODUCTS SAID CERTAIN DETAILS OF THE SETTLEMENT ARE STILL BEING NEGOTIATED ONCE FINALIZED TELEBIT PLANS TO AMEND ITS PREVIOUSLY ANNOUNCED THIRDQUARTER NET INCOME OF 15 MILLION OR 12 CENTS A SHARE THE COMPANY REPORTED THIRDQUARTER REVENUE OF 201 MILLION THE LAWSUIT STEMS FROM TELEBIT'S PURCHASE OF A COMMUNICATIONSPRODUCTS UNIT OF PARADATA IN FEBRUARY 1991 TELEBIT SAID IT BELIEVES IT HAD MERITORIOUS DEFENSES TO ALL CLAIMS BUT THE COMPANY SAID IT DECIDED TO SETTLE IN ORDER TO AVOID COSTS OF LITIGATION ON THE NASDAQ STOCK MARKET TELEBIT SHARES CLOSED AT 7125 UNCHANGED 9311110052 931111 CORRECTIONS & AMPLIFICATIONS NIPPON TELEGRAPH & TELEPHONE CORP WILL BUY 15 MILLION SHARES OF NEXTEL COMMUNICATIONS INC FOR 75 MILLION YESTERDAY'S CORPORATE FOCUS ARTICLE INCORRECTLY SAID NEXTEL WILL PAY NIPPON TELEGRAPH 75 MILLION ALSO COMCAST CORP HOLDS A 134 STAKE IN NEXTEL THAT COULD BE INCREASED TO 30 IF COMCAST EXERCISES CERTAIN STOCK OPTIONS AND OTHER RIGHTS THE ARTICLE INCORRECTLY SAID COMCAST HAD A 30 STAKE IN NEXTEL IN AN ARTICLE YESTERDAY IT WAS INCORRECTLY REPORTED THAT A CREDIT CARD SOLICITATION BY CITIBANK CONTAINED AN OFFER OF A FREE AIRLINE TICKET FOR CARD SUBSCRIBERS THE OFFER REQUIRES THE PURCHASE OF ONE TICKET IN ORDER TO RECEIVE A FREE TICKET ALSO THE CITICORP UNIT DOESN'T NECESSARILY MAKE AVAILABLE THE SAME INCENTIVES FOR ALL PROSPECTIVE CARDHOLDERS IT SOLICITS WORKERS AT A MCDONALD'S CORP RESTAURANT FRANCHISE IN MASON CITY IOWA WERE REPRESENTED BY A UNION FOR A FEW YEARS STARTING IN 1971 AN ARTICLE TUESDAY SAID THAT AN EFFORT TO ORGANIZE A MCDONALD'S FRANCHISE IN ONTARIO WOULD MARK THE FIRST UNIONIZED MCDONALD'S RESTAURANT IF IT WERE SUCCESSFUL 9311110051 931111 BUSINESS BRIEF CBI INDUSTRIES INC COMPANY WILL TAKE CHARGE IN PERIOD FOR RESTRUCTURING CBI INDUSTRIES INC SAID IT WILL TAKE A 45 MILLION TO 55 MILLION CHARGE IN THE FOURTH QUARTER TO PAY FOR A RESTRUCTURING THE OAK BROOK ILL COMPANY WITH INTERESTS IN CONSTRUCTION AND INDUSTRIAL GASES INDICATED THAT ITS WORK FORCE OF 14000 WILL BE TRIMMED AND THAT VARIOUS COMPANYOWNED AND LEASED FACILITIES WILL CEASE OPERATIONS BUT SPECIFIC PLANS HAVEN'T BEEN DEVELOPED A SPOKESMAN SAID GEORGE SCHUEPPERT CHIEF FINANCIAL OFFICER SAID THE CHARGE WILL MAKE IT UNLIKELY THE COMPANY WILL POST A PROFIT IN 1993 IN THE FIRST NINE MONTHS THE COMPANY EARNED 243 MILLION OR 54 CENTS A SHARE ON REVENUE OF 123 BILLION THE ANNOUNCEMENT WAS MADE AFTER THE MARKET CLOSE CBI SHARES CLOSED UP 625 CENTS AT 30 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9311110050 931111 BUSINESS BRIEF ALLEGHENY LUDLUM CORP STEELMAKER CLOSES PURCHASE OF ATHLONE INDUSTRIES INC ALLEGHENY LUDLUM CORP SAID IT CLOSED ITS ACQUISITION OF ATHLONE INDUSTRIES INC THE ACQUISITION A STOCK SWAP VALUED AT 107 MILLION IS EXPECTED TO SOLIDIFY ALLEGHENY'S LEAD AS THE NATION'S LARGEST SPECIALTYSTEEL PRODUCER ATHLONE BASED IN PARSIPPANY NJ MAKES SPECIALTY STEELS IN PLATE FORM AND REPORTED 1992 SALES OF 207 MILLION ATHLONE SHAREHOLDERS WILL RECEIVE 084726 COMMON SHARE OF ALLEGHENY FOR EACH ATHLONE COMMON SHARE THE EXCHANGE RATIO WAS DETERMINED BY DIVIDING 1750 BY THE AVERAGE OF THE CLOSING PRICES OF ALLEGHENY STOCK FOR THE 15DAY TRADING PERIOD ENDED MONDAY ABOUT 5155000 SHARES OF ALLEGHENY STOCK WILL BE ISSUED IN THE TRANSACTION 9311110049 931111 BUSINESS BRIEF SYMMETRICOM INC FISCAL '94 RESULTS MAY TRAIL FORECAST ORDER SLUMP CITED SYMMETRICOM INC SAID SALES AND EARNINGS MAY BE LOWER THAN EXPECTED FOR FISCAL 1994 ENDING JUNE 30 BECAUSE OF AN ORDERS SLUMP IN ITS TELECOM SOLUTIONS DIVISION EARLIER ANALYSTS HAD FORECAST THAT THE SAN JOSE CALIF ELECTRONICS COMPANY WOULD EARN 94 MILLION OR 60 CENTS A SHARE ON 110 MILLION IN SALES A SPOKESMAN SAID HE DECLINED TO OFFER A REVISED FORECAST IN FISCAL 1993 THE COMPANY POSTED PROFIT OF 6 MILLION OR 40 CENTS A SHARE ON SALES OF 879 MILLION THE NEWS REPORTED JUST AFTER THE CLOSE OF MARKETS YESTERDAY HAD LITTLE APPARENT EFFECT ON THE COMPANY'S STOCK WHICH CLOSED AT 14 UP 125 CENTS IN NASDAQ STOCK MARKET TRADING SYMMETRICOM FORMERLY CALLED SILICON GENERAL INC ATTRIBUTED THE SLUMP TO UNCERTAINTIES IN CUSTOMERS' CAPITALSPENDING PLANS AND OTHER FACTORS THE COMPANY ADDED THAT ITS OTHER MAIN BUSINESS IN SEMICONDUCTORS HAS BEEN PROFITABLE IN RECENT QUARTERS 9311110048 931111 BUSINESS BRIEF CR BARD INC PLANTCLOSING IS PLANNED 375 WORKERS TO BE LAID OFF CR BARD INC SAID IT PLANS TO CLOSE A FITZWILLIAM NH PLANT THAT MAKES DEVICES USED TO DIAGNOSE HEART AILMENTS WHICH WILL RESULT IN THE LAYOFF OF 375 WORKERS THE PLANT IS TO BE CLOSED BY DECEMBER 1994 AND ITS OPERATIONS WILL BE MOVED TO A BARD PLANT IN BILLERICA MASS A SPOKESMAN FOR THE COMPANY IN MURRAY HILL NJ WHICH MAKES MEDICAL DEVICES SAID BARD WILL CREATE 200 JOBS AT THE BILLERICA PLANT AND SOME OF THE FITZWILLIAM WORKERS WILL BE OFFERED POSITIONS THERE THE BARD SPOKESMAN SAID THE PLANT CLOSING WAS INTENDED TO LOWER COSTS AND IT WASN'T RELATED TO BARD'S PROPOSED 61 MILLION SETTLEMENT LAST MONTH WITH THE US JUSTICE DEPARTMENT AS PART OF A PLEA AGREEMENT INVOLVING A JUSTICE DEPARTMENT INVESTIGATION OF BARD'S DEALINGS WITH THE FOOD AND DRUG ADMINISTRATION OVER ITS HEART CATHETERS SEVERAL YEARS AGO 9311110047 931111 BUSINESS BRIEF INCO LTD CHARGE FOR 1994 1ST QUARTER TO REFLECT PRODUCTION CUTS INCO LTD SAID IT EXPECTS TO TAKE A 70 MILLION PRETAX OR 40 MILLION AFTERTAX CHARGE IN THE FIRST QUARTER OF 1994 BECAUSE OF COSTS ASSOCIATED WITH ITS PLANNED PRODUCTION CUTBACKS FOR NEXT YEAR THE TORONTO BASEMETAL PRODUCER SAID THE CHARGE INCLUDES TAX INSURANCE AND EMPLOYMENT COSTS AND DEPRECIATION CHARGES THOSE COSTS WOULD NORMALLY BE TREATED AS PRODUCTION COSTS BUT WILL BE CHARGED AGAINST EARNINGS IN THE ABSENCE OF PRODUCTION THE COMPANY SAID INCO SAID LAST MONTH IT PLANS TO SHUT ITS NICKELPRODUCTION FACILITIES IN ONTARIO AND MANITOBA FOR SEVERAL WEEKS IN AN EFFORT TO REDUCE WORLD INVENTORIES OF NICKEL THE COMPANY SAID IT PLANS TO PRODUCE 65 MILLION POUNDS OF NICKEL IN THE FIRST QUARTER OF 1994 DOWN FROM 105 MILLION POUNDS A YEAR EARLIER BUT SAID FULLYEAR PLANS HAVEN'T BEEN COMPLETED INCO ALSO SAID IT PLANS TO REDUCE ITS CAPITAL SPENDING TO CONSERVE CASH CAPITAL SPENDING IS EXPECTED TO REACH 193 MILLION IN 1993 AND FALL TO 150 MILLION NEXT YEAR 9311110046 931111 INTERNATIONAL ISRAEL'S PRIME MINISTER IS LIKELY TO TELL CLINTON THAT SYRIA TALKS ARE STYMIED BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ISRAELI PRIME MINISTER YITZHAK RABIN IS EXPECTED TO TELL PRESIDENT CLINTON AT A WHITE HOUSE MEETING TOMORROW THAT CONDITIONS AREN'T RIPE FOR PROGRESS IN SYRIAISRAEL PEACE TALKS THE ISRAELI PUBLIC STILL UNSURE OF WHETHER SEPTEMBER'S SURPRISE AGREEMENT BETWEEN ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION WILL SUCCEED ISN'T IN THE MOOD TO DIGEST ANOTHER SUBSTANTIAL DIPLOMATIC INITIATIVE ACCORDING TO ITAMAR RABINOVICH ISRAEL'S AMBASSADOR TO THE US ISRAELIS ARE STILL WAITING TO SEE SOME REAL BENEFITS THAT ACCRUE FROM PEACEMAKING AND SOME PUBLIC CONFIDENCEBUILDING GESTURES FROM SYRIA MR RABINOVICH SAID IN AN INTERVIEW ALTHOUGH WASHINGTON HAS UNDERSTOOD THAT ISRAEL ISN'T LIKELY TO REACH AN ACCORD WITH SYRIA ANYTIME SOON US OFFICIALS WERE HOPING MR RABIN COULD TELL MR CLINTON THAT HE WAS READY TO MOVE AHEAD ON NEGOTIATIONS WITH DAMASCUS BUT MR RABINOVICH A CONFIDANT OF THE PRIME MINISTER SAID BEFORE YOU UNLOAD ON THE ISRAELI POLITICAL SYSTEM ANOTHER MAJOR AGREEMENT WITH COMPLEX ARRANGEMENTS AND SO FORTH THE BODY POLITIC NEEDS TO SEE THAT THE FIRST AGREEMENT IS INDEED WORKING THE AMBASSADOR ALSO SAID THAT THERE STILL ARE SIGNIFICANT GAPS SEPARATING ISRAEL AND THE PLO AS THEY HEAD TOWARD A DEC 13 DEADLINE FOR AGREEMENT ON THE PLAN TO TURN OVER ISRAEL'S GOVERNANCE OF GAZA AND THE WEST BANK TOWN OF JERICHO TO THE PLO BUT MR RABINOVICH ADDED THAT ISRAEL HOPES TO BUILD A STRONG ECONOMIC RELATIONSHIP WITH JORDAN AND IS DEEPLY CONCERNED ABOUT IRAN'S CHEMICAL AND NUCLEAR WEAPONS PROGRAM A TOPIC MR RABIN WILL DISCUSS WITH PRESIDENT CLINTON PEACE TALKS BETWEEN SYRIA AND ISRAEL REMAIN STALEMATED SYRIA WANTS ISRAEL TO DECLARE THAT IT WILL WITHDRAW FULLY FROM THE GOLAN HEIGHTS WHICH ISRAEL OCCUPIED AFTER THE 1967 ARABISRAELI WAR BEFORE DAMASCUS DESCRIBES THE DETAILS OF WHAT KIND OF PEACE IT WOULD OFFER ISRAEL ISRAEL WANTS TO KNOW ABOUT SYRIA'S VERSION OF PEACE BEFORE IT WILL DISCUSS DETAILS ABOUT THE GOLAN HEIGHTS CONCERNING JORDAN MR RABINOVICH SAID THAT IT WOULD MAKE A LOT OF SENSE FOR ISRAEL AND JORDAN TO UNDERTAKE JOINT ECONOMIC PROJECTS THERE HAVE BEEN WIDESPREAD REPORTS WHICH MR RABINOVICH WOULDN'T CONFIRM THAT ISRAELI FOREIGN MINISTER SHIMON PERES AND JORDAN'S KING HUSSEIN MET SECRETLY LAST WEEK TO DISCUSS SEVERAL ISSUES INCLUDING POSSIBLE ECONOMIC TIES AS THEY CONTINUE NEGOTIATING A PEACE TREATY KING HUSSEIN IS CONCERNED THAT WITH ATTENTION AND AID RESOURCES CONCENTRATED ON THE PALESTINIANS HIS NATION WILL BE LEFT OUT IN THE COLD ISRAELI OFFICIALS ARE TRYING TO ASSURE THE MONARCH THAT THIS WON'T BE THE CASE MR RABINOVICH NOTED THAT THE 2 BILLION RAISED OCT 1 AT A DONORS' CONFERENCE IN WASHINGTON IS FOR REGIONAL DEVELOPMENT MR RABINOVICH SAID THAT THE TWO NATIONS MIGHT CONSIDER PROJECTS INVOLVING SUCH THINGS AS TOURISM IN THE REGION AS WELL AS A JOINT EFFORT TO COMBINE AND MOVE THE PORTS OF AQABA AND ELAT TO REDUCE THE ENVIRONMENTAL DAMAGE CURRENTLY INFLICTED ON THE RED SEA CONCERNING THE TALKS WITH THE PALESTINIANS THE ISRAELI AMBASSADOR ASSERTED THAT PROBLEMS PERSIST BECAUSE THE PLO LEADERS ARE TRYING TO PUSH WHAT IS SUPPOSED TO BE AN INTERIM AGREEMENT TOWARD THEIR ULTIMATE GOAL OF ESTABLISHING A PALESTINIAN STATE TALKS ON SOCALLED FINAL STATUS ISSUES SUCH AS THE FUTURE OF JERUSALEM AREN'T SUPPOSED TO BEGIN UNTIL THE THIRD YEAR AFTER THE INTERIM PLAN IS IN EFFECT MR RABINOVICH CITED A SNAG IN THE TALKS OVER THE PROJECTED SIZE OF A PALESTINIAN POLICE FORCE HE SAID A FORCE OF 3000 WHICH THE ISRAELIS WANT WOULD BE A DOMESTIC POLICE FORCE WHILE A FORCE OF 25000 WHICH THE PALESTINIANS WANT WOULD BE A PARAMILITARY FORCE IN THE GUISE OF A POLICE FORCE 9311110045 931111 TALENTED OUTCASTS BEAR STEARNS PROSPERS HIRING DARING TRADERS THAT RIVAL FIRMS SHUN IT LETS THEM MAKE BIG BETS BUT SHARPEYED FERRETS' WATCH THEIR EVERY MOVE GRILLED AT THE COLDSWEAT' BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER HOWARD RUBIN WAS BLAMED FOR A 377 MILLION BONDTRADING LOSS IN 1987 HE WAS FIRED BY MERRILL LYNCH & CO AND SHUNNED ON WALL STREET NO ONE WOULD HIRE HIM EXCEPT BEAR STEARNS COS ITS BET PAID OFF MR RUBIN'S MORTGAGEBOND GROUP GENERATED ABOUT 150 MILLION IN TRADING PROFIT FOR BEAR IN THE FISCAL YEAR ENDED JUNE 30 PEOPLE CLOSE TO THE FIRM SAY THE 38YEAROLD MR RUBIN POCKETED A PAYCHECK OF 65 MILLION HIS COUP HELPED PROPEL BEAR TO A 49 PRETAX RETURN ON EQUITY THE BEST OF ANY BIG WALL STREET FIRM AND TO A RECORD PROFIT OF 3624 MILLION HE'S A SUPERSTAR SAYS JAMES CAYNE BEAR'S PRESIDENT AND CHIEF EXECUTIVE LIKE THE LOS ANGELES RAIDERS THE PRO FOOTBALL TEAM THAT WINS BY RECRUITING TALENTED OUTCASTS BEAR HAS THRIVED PARTLY BY HIRING PEOPLE DROPPED BY RIVALS OR WHO LEFT THEIR FIRMS IN PURSUIT OF MORE CLOUT BESIDES MR RUBIN THEY INCLUDE MUSTAFA CHIKEOBI A MORTGAGE TRADER BOOTED LAST YEAR FROM THE KIDDER PEABODY SUBSIDIARY OF GENERAL ELECTRIC CO AFTER A DISPUTED SEXUALHARASSMENT CLAIM DONALD MULLEN FORMER JUNKBOND SALESMAN AT DREXEL BURNHAM LAMBERT INVESTMENT BANKER DAVID MALCOLM AND CAPITALMARKETS EXECUTIVE CURTIS WELLING BOTH FORMERLY OF CS FIRST BOSTON AND INVESTMENT BANKER DENIS BOVIN FROM SALOMON INC BEAR HAS BEEN WILLING TO TAKE MORE RISK ON PEOPLE AND NOT LET REPUTATION OR IMAGE BE AS MUCH OF A FACTOR AS OTHER FIRMS SAYS WILLIAM MAYER A FORMER FIRST BOSTON CHIEF EXECUTIVE AND NOW DEAN OF THE UNIVERSITY OF MARYLAND'S BUSINESS SCHOOL BEAR HAS BEEN DOING IT QUITE SUCCESSFULLY AS THE RAIDERS HAVE DONE OVER THE YEARS A LOOK AT HOW BEAR STEARNS SUCCEEDS BY GIVING PEOPLE A SECOND CHANCE OPENS A WINDOW ONTO WALL STREET'S QUINTESSENTIAL TRADING CULTURE BEAR GIVES MANY OF ITS TRADERS AND OTHERS WIDE FREEDOM THEN SCRUTINIZES THEIR EVERY MOVE EACH MONDAY AT 410 PM TRADERS AND OTHERS WHO PUT THE FIRM'S CAPITAL AT RISK GATHER FOR A COLDSWEAT RISKCOMMITTEE MEETING TO DECLARE BIG TRADING POSITIONS AND WHY THEY HOLD THEM IN ADDITION INHOUSE SPIES CALLED FERRETS PATROL THE TRADING FLOORS INVESTIGATING UNUSUALLY PRICED OR RISKY TRADES WE THINK ALL PEOPLE ARE HONEST BUT THEY'RE MORE HONEST IF YOU WATCH THEM LIKE A HAWK SAYS THE 59YEAROLD MR CAYNE THE FIRM'S HIRING STRATEGY REFLECTS ITS CONTRARIAN BENT AFTER LARGELY AVOIDING THE JUNKBOND BUSINESS IN THE GOGO 1980S BEAR NOW IS A SIGNIFICANT JUNK PLAYER LAST YEAR IT TRADED 442 MILLION OR NEARLY ONEQUARTER OF THE JUNK BONDS AUCTIONED BY RESOLUTION TRUST CORP BEAR WAS AMONG THE FIRST ON WALL STREET TO PLUNGE SUCCESSFULLY INTO TRADING LATIN AMERICAN BANK LOANS UNLIKE FIRST BOSTON AND OTHERS BEAR SIDESTEPPED THE 1980S PITFALL OF TEMPORARY BRIDGE LOANS TO CORPORATE CLIENTS AND INSTEAD MADE MOREMUNDANE LOANS TODAY BEAR HAS OUTSTANDING A RECORD 13 BILLION IN MARGIN LOANS TO INVESTORS AND ITS CLIENTS REPRESENT 32 OF THE SHORTSELLING ACTIVITY ON THE NEW YORK STOCK EXCHANGE NOW BEAR KNOWN AS A TRADING HOUSE SINCE ITS FOUNDING 70 YEARS AGO IS TRYING TO BEEF UP ITS INVESTMENTBANKING UNIT THROUGH SEPTEMBER SAYS SECURITIES DATA CO THE UNIT HAD JUST A 48 MARKET SHARE OF ALL UNDERWRITINGS BEAR HIRED MR BOVIN FROM SALOMON AND OTHERS TO BOLSTER THE UNIT AND BEAR IS A FINALIST IN A HIRING CONTEST FOR JOSEPH PERELLA A WALL STREET MERGER STAR WHO RECENTLY SPLIT UP WITH HIS LONGTIME PARTNER BRUCE WASSERSTEIN BEAR HAS HAD SOME RECENT SUCCESSES INCLUDING MANAGING ON ITS OWN A 102 MILLION INITIAL PUBLIC STOCK OFFERING FOR EK CHOR CHINA MOTORCYCLE A RED MOTORCYCLE STANDS IN MR CAYNE'S OFFICE AS A TROPHY FROM THE DEAL BEAR ALSO HAS PLUNGED INTO GLOBAL DERIVATIVES TRADING BY HIRING WENDY DE MONCHAUX A FORMER DREXEL EXECUTIVE TO SNARE RECRUITS BEAR SOMETIMES GOES TO UNUSUAL LENGTHS IN MAY ITS 66YEAROLD CHAIRMAN ALAN ACE GREENBERG CALLED REPORTERS AT THIS NEWSPAPER TO TRACK DOWN AC MCCORMACK A SECRETARY FIRED FROM A DEBTTRADING FIRM AFTER SHE IMPLICATED HER BOSS IN A PENDING INVESTIGATION BY THE MANHATTAN DISTRICT ATTORNEY'S OFFICE INTO ALLEGED IMPROPRIETIES IN DEVELOPINGCOUNTRY DEBT BEAR RECENTLY HIRED MS MCCORMACK AS A TRADING SPY SHE HAD THE GUTS TO TURN IN HER BOSSI LOVE IT SAYS MR GREENBERG RIFFLING THROUGH FILES TO FIND THE NEWSPAPER CLIPPING THAT SPARKED HIS INTEREST WE'RE LIKE FATHER FLANAGAN'S BOYS TOWN BUT WE TAKE GIRLS EVEN SOME OF BEAR'S CLIENTS HAVE BEEN OUTCASTS THE FIRM TRADED WITH IVAN BOESKY AMID RUMORS OF HIS INSIDER TRADING IN THE 1980S MR BOESKY LATER WAS CONVICTED IN THE GOVERNMENT'S MASSIVE INSIDERTRADING INVESTIGATION BEAR WASN'T IMPLICATED IN THE SCANDAL WHEN OTHER FIRMS SHUNNED JOHN MULHEREN JR WHO ALSO WAS CHARGED IN THE INSIDERTRADING SCANDAL BEAR CONTINUED TO CLEAR TRADES FOR HIM A FEDERAL APPEALS COURT IN 1990 EXONERATED MR MULHEREN WE FELT COMFORTABLE WITH HIM SAYS RICHARD HARRITON BEAR'S CLEARING CHIEF THERE WAS NO REASON LEGALLY NOT TO DO BUSINESS WITH HIM BEAR'S MAVERICK WAYS EXTEND FURTHER TO ESCORT VISITORS TO MEETINGS THE FIRM THIS YEAR STAFFED ITS PARK AVENUE HEADQUARTERS WITH MODELS SEDUCTIVELY CLAD IN SHORT SKIRTS AFTER SOME WOMEN EXECUTIVES COMPLAINED BEAR CLOTHED THE MODELS DUBBED GEISHA GIRLS BECAUSE SENIOR EXECUTIVES HATCHED THE IDEA AFTER A TRIP TO ASIA MORE CONSERVATIVELY BUT RUNNING AGAINST THE GRAIN CAN BRING PROBLEMS IN 1991 BEAR FIRED LAWRENCE GREEN A STOCKBROKER SNARED FROM LEHMAN BROTHERS INC AFTER A CLIENT ACCUSED HIM OF UNAUTHORIZED TRADES THAT LEFT THE FIRM WITH A LOSS OF NEARLY 1 MILLION MR GREEN HAS DENIED THE TRADES WERE UNAUTHORIZED THIS YEAR BEAR OUSTED J FREDERIC STORASKA A FORMER PRUDENTIAL SECURITIES INC BROKER BEING INVESTIGATED BY FEDERAL AND STATE PROSECUTORS LOOKING INTO WIDESPREAD ALLEGATIONS OF CUSTOMER ABUSES AT THE UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA DENNIS BLOCK MR STORASKA'S LAWYER DENIES THAT HIS CLIENT MISTREATED PRUDENTIAL CLIENTS NEVERTHELESS BEAR'S RISK CONTROLS HAVE GENERALLY SHIELDED IT FROM THE WILD EARNINGS ZIGZAGS OF OTHER WALL STREET TRADING FIRMS AND BEAR CUTS COSTS TO THE BONE IN FISCAL 1993 ITS COMPENSATION EXPENSE REPRESENTED 48 OF NET REVENUE ANYTHING BELOW 50 IS VIEWED AS HEROIC ON WALL STREET IN AN INTERNAL MEMO NEUBERGER & BERMAN A BIG MONEYMANAGEMENT FIRM AND LONGTIME BEAR FAN CALLED BEAR ONE OF THE VERY BEST MANAGED FIRMS IN THE COUNTRY CHIEF AMONG BEAR'S RISK POLICE ARE THE FERRETS THESE SPIES WHO HAVE NICKNAMES SUCH AS SNOOP KENNETH COWIN AND THE HAWK KENNETH EDLOW EVEN SCRUTINIZE SENIOR EXECUTIVES' BROKERAGE ACCOUNTS WHEN WILLIAM MONTGORIS BEAR'S CHIEF FINANCIAL OFFICER DEPOSITED A CHECK FROM ANOTHER BEAR EXECUTIVE INTO HIS BROKERAGE ACCOUNT TWO YEARS AGO MR COWIN IMMEDIATELY ASKED MR MONTGORIS TO EXPLAIN IT THE BEAR EXECUTIVE WAS REPAYING A LOAN FROM MR MONTGORIS THE FERRETS LAST MONTH HELPED NAB MICHAEL SIDOTI A BEAR TRADER WHO HAD ALLEGEDLY MISMARKED AN OPTIONS POSITION BY 200000 PEOPLE FAMILIAR WITH THE FIRM SAY AND TRIED TO COVER IT UP HE WAS FIRED ON THE SPOT THE DEFINITION OF A GOOD TRADER IS A GUY WHO TAKES LOSSES MR GREENBERG SAYS THE DEFINITION OF AN EXTRADER IS ONE WHO TRIES TO COVER UP A LOSS THOUGH MR SIDOTI WAS AN EIGHTYEAR BEAR VETERAN AND TALENTED TRADER MR GREENBERG SAYS THERE'S NO APPEAL NO NOTHING GET CAUGHT HE SAYS AND YOU'RE OUT OUT MR SIDOTI COULDN'T BE REACHED FOR COMMENT MOST FERRETS ARE FORMER TRADERS CHIEF FERRET MICHAEL WINCHELL ONCE A MORTGAGE TRADER SAYS THEY HAVE TO BE AS SAVVY AS THE TRADERS TO BE RESPECTED FERRETS OFTEN RELY ON INSTINCT YOU CAN SEE RISK ON PEOPLES' FACES YOU CAN SEE PROBLEMS ON PEOPLES' FACES SAYS MR WINCHELL WHOSE CHILDREN CALL HIM THE WEASEL HE BOASTS IF THERE'S A PROBLEM MY GUYS WILL FIND IT NINE TIMES OUT OF 10 MR RUBIN AND OTHER OUTCASTS THRIVE AT BEAR BECAUSE OF THESE TIGHT CONTROLS BEAR EXECUTIVES SAY MR RUBIN HAD LITTLE SUPERVISION AT MERRILL WHERE HIS 1987 TRADING LOSS QUICKLY MUSHROOMED AFTER HE TRIED TO RECOUP AN EARLIER DEFICIT HOWIE DIDN'T HAVE THE RIGHT SUPPORT MR WINCHELL SAYS MR RUBIN HIMSELF SAYS I FELT LIKE I WAS MORE OF AN ISLAND AT MERRILL HERE IF I TAKE A LARGER POSITION I CAN GRAB SENIOR EXECUTIVES TO CHAT ABOUT IT AT NO TIME DO THEY NOT UNDERSTAND WHAT RISKS I'M TAKING ON HE ADDS AT BEAR'S WEEKLY COLDSWEAT MEETING MESSRS GREENBERG CAYNE AND OTHERS GRILL BEAR TRADERS ON THEIR HOLDINGS MR GREENBERG IS FANATICAL ABOUT HAVING STATIC OR LOSING POSITIONS SOLD QUICKLY THE FIRM PRINTS AN AGEDPOSITION REPORT THAT SHOWS STALE TRADES NOT SOLD WITHIN 90 DAYS MR GREENBERG RECALLS THAT HIS FATHER A CLOTHING RETAILER OFTEN TOLD HIM IF SOMETHING ISN'T MOVING SELL IT TODAY BECAUSE TOMORROW IT WILL BE WORTH LESS AT RISK MEETINGS MR GREENBERG NEEDLES EVEN THE FIRM'S TOP TRADERS YOU CAN COME IN AND ANNOUNCE YOU'VE HAD THE BEST WEEK OF YOUR LIFE AND ACE WILL SAY YOU'VE GOT 50 MILLION OF BONDS THAT ARE FOUR MONTHS OLD THAT'S TERRIBLE IT'S OUT OF CONTROL' SAYS WARREN SPECTOR THE 35YEAROLD COHEAD OF FIXED INCOME MR SPECTOR WHO EARNED 117 MILLION LAST YEAR ADDS YOU DON'T GET TO GLOAT BEAR'S TOP TRADING EXECUTIVES USE SOPHISTICATED COMPUTER WORKSTATIONS TO TRACK EACH OF ITS TRADING POSITIONS AND FLASH WARNINGS WHEN THEY ARE TOO LARGE OR UNUSUALLY PRICED BUT WHAT'S IMPORTANT ABOUT THE MEETING IS THAT YOU'VE GOT TO GO THERE EVERY MONDAY AND HAVE THESE GUYS LOOK YOU IN THE EYES SAYS ALAN SCHWARTZ COHEAD OF INVESTMENT BANKING THIS ISN'T OTHER PEOPLE'S MONEY MESSRS CAYNE AND GREENBERG BOTH ACCOMPLISHED BRIDGE PLAYERS URGE THEIR TRADERS AND OTHERS TO TAKE CALCULATED RISKS BUT UNLIKE MANY WALL STREET FIRMS BEAR SWALLOWS TRADING LOSSES AS A PART OF DOING BUSINESS IF YOU HAVEN'T TAKEN LOSSES RECENTLY MR GREENBERG TELLS TRADERS YOU HAVEN'T BEEN TAKING ENOUGH RISK WHEN BOBBY STEINBERG COHEAD OF RISK ARBITRAGE HAD A 50 MILLION LOSS ON THE DAY OF THE OCTOBER 1987 CRASH MR GREENBERG URGED HIM TO KEEP HIS COOL I WAS SHELLSHOCKED THERE DIDN'T SEEM TO BE ANY END IN SIGHT BUT ACE TOLD ME IF THERE WERE DEALS WITH GREAT OPPORTUNITY TO BE A BUYER INDEED MR GREENBERG BROKE THE TENSION ON BLACK MONDAY BY GETTING UP FROM HIS CHAIR ON THE TRADING FLOOR PRACTICING HIS GOLF SWING AND LOUDLY ANNOUNCING HE WAS TAKING THE NEXT DAY OFF EVEN THOUGH HE DOESN'T PLAY GOLF AND CAME IN THE FOLLOWING DAY DESPITE A 96 MILLION LOSS IN THE CRASH HE SAYS I WANTED TO SHOW THAT THERE WAS NO PANIC AT BEAR STEARNS BEAR TOLERATES LOSSES BUT NOT SURPRISES AT AN APRIL MEETING DAVID LIEBOWITZ HEAD OF THE CONVERTIBLEBOND GROUP WAS GRILLED ON A BIG POSITION IN JAPANESE CONVERTIBLE BONDS AND WARRANTS ASKED ABOUT THE RISKS MR LIEBOWITZ CAUTIONED THAT BEAR COULD LOSE HEAVILY IF THE MARKET REMAINED FLAT WITH NO BIG PRICE SWINGS THAT'S JUST WHAT HAPPENED AND MR LIEBOWITZ LOST ABOUT 10 MILLION IN JULY ON THE TRADE PEOPLE FAMILIAR WITH THE FIRM SAY BUT BECAUSE THE FIRM WAS PREPARED FOR SUCH A DISAPPOINTMENT HE SAYS ITS EXECUTIVES TOOK IT IN STRIDE IT HAPPENS TO EVERYBODY MR LIEBOWITZ SAYS JOHN SITES BEAR'S COCHIEF OF FIXED INCOME TOLD HIM DON'T GET DEPRESSED MR LIEBOWITZ KEPT THE TRADING POSITION AND HAS MORE THAN MADE UP THE LOSS DESPITE TIGHT CONTROLS BEAR USUALLY GIVES YOUNG EMPLOYEES BIG RESPONSIBILITIES THEY GAVE ME WHAT I ALWAYS WANTED MY OWN BUSINESS SAYS MR MULLEN THE FORMER DREXEL SALESMAN WHO NOW COHEADS BEAR'S JUNKBOND/BANKRUPTCY UNIT AND BEAR DOESN'T RELY ON FORMAL BUSINESS STRATEGIES IF YOU MAKE MONEY YOU CAN RUN YOUR BUSINESS ANYWAY YOU WANT TO MR MULLEN COMMENTS BEAR EXHIBITS LITTLE OF THE BUREAUCRACY THAT OTHER BIG INVESTMENT BANKS HAVE NO DETAILED JOB DESCRIPTIONS TERRITORIAL BOUNDARIES OR ORGANIZATIONAL CHARTS THE WAY TO RISE WITHIN THE FIRM IS SIMPLE MAKE MONEY THEY WANT 'MAILMEN' BECAUSE MAILMEN DELIVER SAYS CHUCK RAMSEY A FORMER SENIOR MANAGING DIRECTOR NOW AT ALEX BROWN & SONS THE RESULT ACCORDING TO MR WELLING THE FORMER FIRST BOSTON EXECUTIVE HERE YOU HAVE THE OPPORTUNITY TO JUMP THROUGH THE RANKS QUICKLY AND MAKE BIG BUCKS HE SAYS AT WHITESHOE FIRMS YOU ADVANCE IN CLASSES ALTHOUGH BEAR DOESN'T PAY BIG UPFRONT BONUSES OR ISSUE STOCK OPTIONS ITS BIG PRODUCERS OFTEN ARE AMONG THE HIGHEST PAID ON THE STREET MESSRS CAYNE AND GREENBERG EACH TOOK HOME 159 MILLION IN CASH FOR FISCAL 1993 COMPENSATION EXPERT GRAEF CRYSTAL INCLUDED MR GREENBERG UNTIL JULY BEAR'S CHIEF EXECUTIVE IN A LIST OF THE MOST OVERPAID CHIEF EXECUTIVES IN AMERICA MR GREENBERG DEFENDS HIS PAY SAYING HIS ANNUAL BASE SALARY IS JUST 200000 WITH THE REST OF HIS COMPENSATION TIED TO PERFORMANCE GOALS TRADERS AND BANKERS ARE POUNDED TO PUT PROFITS BEFORE MARKET SHARE ON THE LAST TRADING DAY OF CALENDAR 1989 BEAR NEEDED TO UNDERWRITE ONLY A 300 MILLION OFFERING TO WIN THE TOP SPOT IN WALL STREET'S HOTLY CONTESTED MORTGAGEBOND RANKINGS AT A LUNCHEON MEETING THAT DAY MR GREENBERG ASKED MR RUBIN HOW MUCH MONEY WILL WE MAKE MR RUBIN SAID BEAR WOULD LOSE A LITTLE MONEY ON THE DEAL BEAR PASSED ON THE TRANSACTION DURING A RECENT INTERVIEW MR GREENBERG ANSWERED A PHONE CALL FROM A BEAR TRADER PAUSED THEN BARKED WHOSE BUYING IT A CLIENT ARE YOU MAKING ANYTHING OFF IT WE CAN'T MAKE A LIVING MAKING A 16TH OF A POINT CLICK MR CAYNE HAS BEEN CHIEF EXECUTIVE SINCE JULY BUT HAS IN FACT RUN THE DAILY BUSINESS FOR SEVERAL YEARS AMONG HIS IMPRINTS TRYING TO RECREATE THE PRIVATEPARTNERSHIP ATMOSPHERE IN 1985 IN A BID TO BOLSTER ITS 517 MILLION IN CAPITAL BEAR WENT PUBLIC TODAY IT HAS TOTAL CAPITAL OF 45 BILLION UNLIKE MR GREENBERG WHO FREQUENTLY MAKES SNAP DECISIONS BASED ON BRIEF CHATS MR CAYNE DELEGATES AUTHORITY THROUGH A HOST OF COMMITTEES MORE PEOPLE NOW FEEL PART OF A DECISIONMAKING PROCESS RATHER THAN HAVING TOPDOWN MANAGEMENT SAYS MICHAEL TARNOPOL BEAR'S MERGER CHIEF MR CAYNE ALSO HELPED DEVISE BEAR'S 1990 CAPITALACCUMULATION PLAN WHICH DEFERS PAY IN EXCHANGE FOR BEAR STOCK THUS TYING EMPLOYEES' FORTUNES TO THE FIRM'S THE PLAN CAME AFTER GROUSING BY YOUNGER EMPLOYEES WHO HADN'T BECOME RICH FROM THE PUBLIC OFFERING WHAT HAS ENDURED IS BEAR'S TIGHTFISTED WAYS ITS CREDO THE EASIEST WAY TO MAKE MONEY IS TO CUT COSTS IN A LEGENDARY MEMO MR GREENBERG EXHORTED EMPLOYEES TO SAVE PAPER CLIPS RATHER THAN BUY NEW ONES HE COMPULSIVELY SHUTS OFF COMPUTERS NOT IN USE AT A JUNKBOND CONFERENCE AT THE WALDORFASTORIA IN APRIL SOME BEAR EXECUTIVES WANTED ARETHA FRANKLIN TO SING BUT SHE WAS TOO EXPENSIVE THE FIRM SETTLED FOR THE TEMPTATIONS EXECUTIVES ARE FINED FOR TOLERATING FISCAL FAT TREASURER MICHAEL MINIKES WAS DOCKED 2000 FOR ALLOWING TWO INVESTMENT BANKERS TO FLY TO LONDON ON THE CONCORDE THE CHIEF WENT NUTS A CHASTENED MR MINIKES SAYS THE FIRM WON'T PAY FIRSTCLASS FARES EXCEPT TO ASIA OR TO JOIN CLIENTS FLYING FIRST CLASS BEAR HASN'T ANY CORPORATE JETS LIMOUSINES OR CORPORATE APARTMENTS AND MR GREENBERG PERSONALLY HEADS THE EFFORT TO WEED OUT ABUSES OF THE MORE THAN 100 MEMOS HE WROTE BETWEEN 1977 AND 1993 NEARLY HALF CONCERNED CONTROLLING COSTS STEPHEN CUNNINGHAM COHEAD OF INTERNATIONAL INVESTMENT BANKING RECENTLY RETURNED WITH MR GREENBERG TO NEW YORK FROM A TRIP TO MEXICO AND CALLED HIS SECRETARY TO ARRANGE A CAR TO PICK UP THEM AT KENNEDY AIRPORT MY SECRETARY ORDERED YOU A CAR MR CUNNINGHAM TOLD HIS BOSS WHY MR GREENBERG RESPONDED ARE THE YELLOW CABS ON STRIKE 9311110044 931111 FOREIGN EXCHANGE YEN ADVANCES BROADLY AS SOME INVESTORS SWITCH OUT OF DOLLAR MARK ALSO GAINS BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE YEN ROSE ACROSS THE BOARD WEDNESDAY AS SOME USBASED INVESTORS SNUBBED THE DOLLAR AND FLOCKED TO THE JAPANESE CURRENCY THE DOLLAR ALSO FELL A BIT AGAINST THE MARK AFTER A BLAND REPORT ON US INFLATION SAPPED SOME OF THE ENTHUSIASM OF DOLLAR BULLS HOWEVER THE US CURRENCY MANAGED TO EKE OUT SOME GAINS AGAINST THE AILING NEW ZEALAND DOLLAR WHICH CONTINUED TO BE NAGGED BY POLITICAL UNCERTAINTY AFTER THE WEEKEND'S UNCLEAR ELECTION RESULT LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16885 MARKS DOWN FROM 16928 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10715 YEN DOWN FROM 10793 YEN STERLING WAS TRADING AT 14775 UP FROM 14690 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10717 YEN AND AT 16869 MARKS DEALERS REPORTED THAT A FEW US INVESTMENT BANKS AND SPECULATIVE FUNDS WERE HEAVY SELLERS OF DOLLARS FOR YEN WEDNESDAY PROPELLING THE JAPANESE UNIT STEADILY HIGHER FOR MOST OF THE DAY THEY ADDED THAT THE YEN RECEIVED A FURTHER BOOST AS SOME PLAYERS TRIMMED POSITIONS IN THE MARK CANADIAN AND AUSTRALIAN DOLLARS IN FAVOR OF YEN WHAT WE SAW WAS SOME OF THE INVESTMENT BANKS AND FUNDS PULLING THE TRIGGER AND SELLING DOLLARS FOR YEN SAID PETER MICHAELS ASSISTANT VICE PRESIDENT AT FUJI BANK LTD IN NEW YORK TRADERS NOTED THAT THE ONE BLIP IN THE YEN'S STEADY RISE OCCURRED DURING THE NEW YORK MORNING WHEN THE DOLLAR SUDDENLY SNAPPED BACK FROM AROUND 107 YEN TO HIT 10771 YEN WITHIN A MINUTE OR TWO TRADERS SAID THE MOVE CAME AMID A WAVE OF RUMORS ASSERTING THAT THE FEDERAL RESERVE HAD INTERVENED TO STABILIZE THE DOLLAR IN THE ABSENCE OF ANY EVIDENCE OF FED ACTION CONFIRMING THE RUMOR TRADERS SAID THE MARKET DISMISSED THE TALK AND THE DOLLAR RESUMED ITS SLIDE FOR THE REST OF THE DAY I DON'T BUY IT AT ALL FUJI BANK'S MR MICHAELS SAID OF THE RUMOR NOTING THAT SUCH FED ACTION WOULD CONTRADICT A RECENT COMMENT BY US TREASURY SECRETARY LLOYD BENTSEN EXPRESSING SATISFACTION WITH THE DOLLAR'S CURRENT LEVEL AGAINST THE YEN MEANWHILE DEALERS REPORTED A LETHARGIC REACTION TO THE RELEASE OF THE US CONSUMER PRICE INDEX FOR OCTOBER WHICH ROSE 04 FROM SEPTEMBER EXACTLY MATCHING EXPECTATIONS TRADERS NOTED THAT THE NEWS SPARKED A HALFHEARTED RALLY IN THE DOLLAR AGAINST THE MARK BUT ADDED THAT IT QUICKLY RAN OUT OF STEAM AS THE DOLLAR APPROACHED A KEY TECHNICAL LEVEL AT 16980 MARKS THERE WERE A LOT A BIG ORDERS TO SELL DOLLARS UP TO ABOUT 16980 85 MARKS SAID BOB MCENTEE VICE PRESIDENT FOREIGN EXCHANGE AT FIDELITY BANK IN PHILADELPHIA FEAR OF THOSE ORDERS PLACED A FIRM CAP ON THE DOLLAR SENDING IT SLOWLY LOWER FOR THE REST OF THE DAY MR MCENTEE ALSO NOTED THAT WITH MANY US PLAYERS LIKELY TO SIT OUT THURSDAY DUE TO THE VETERANS' DAY HOLIDAY AND A KEY US ECONOMIC REPORT ON RETAIL SALES FOR OCTOBER TO BE RELEASED FRIDAY SOME INVESTORS SPENT WEDNESDAY AFTERNOON SQUARING UP THEIR BOOKS RATHER THAN TAKING ANY NEW POSITIONS ON THE DOLLAR 9311110043 931111 SOTHEBY'S 139 MILLION SALE SIGNALS ACCELERATED RECOVERY IN ART MARKET BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL YESTERDAY'S AUCTION AT SOTHEBY'S HOLDINGS INC PROVED THAT THE ART MARKET IS RECOVERING AT AN ACCELERATED PACE SOTHEBY'S HUGE SALES ROOM PROVED TO BE A VIBRANT AND EFFICIENT MARKETPLACE BIDDING OVER THE TELEPHONE AND FROM ALL CORNERS OF THE ROOM ENABLED 54 OF THE 67 ARTWORKS TO SELL MORE IMPORTANTLY ROUTINE UNEXCEPTIONAL WORKS SOLD WELL AND THOSE TYPES OF WORKS ARE THE BREAD AND BUTTER OF THE ART DEALING INDUSTRY THE SALES STARTED OFF SHAKY WITH A PRICY AND PROMINENT WILLEM DE KOONING PAINTING FAILING TO SELL BUT WHEN SIX ARTWORKS BROKE ABOVE SOTHEBY'S PRESALE ESTIMATES A CORNER WAS TURNED LUCY MITCHELLINNES HEAD OF THE AUCTION HOUSE'S 20TH CENTURY ART DEPARTMENT SAID THERE WAS A DEFINITE INJECTION OF MONEY AND CONFIDENCE IN THE ROOM HERE TONIGHT THE TOTAL FOR THE SALE INCLUDING THE COMMISSION PAID TO SOTHEBY'S WAS 139 MILLION THE SALE HAD BEEN EXPECTED TO RAISE ABOUT 113 MILLION TO 155 MILLION THAT TOTAL AND ALL THE PRICES INCLUDE SOTHEBY'S COMMISSION WHICH IS 15 ON THE FIRST 50000 AND 10 ON THE REMAINDER DAVID HOCKNEY'S 1964 PAINTING CALIFORNIA ART COLLECTOR A WITTY SENDUP OF THE MONEYED MATRON AND ONE OF MR HOCKNEY'S EARLIEST VERSIONS OF HIS TRADEMARK SWIMMING POOL BROUGHT 102 MILLION ITS PRESALE PRICE ESTIMATE WAS 600000 TO 800000 THE PIECE CARRYING THE HIGHEST PRESALE PRICE ESTIMATE A HEFTY 15 MILLION TO 2 MILLION WAS CY TWOMBLY'S 1969 WORK UNTITLED THE PAINTING A BIG WHITE CANVAS COVERED IN FRANTIC SCRAWLS SCRIBBLES AND NUMBERS SOLD FOR 17 MILLION TO ELI BROAD CHAIRMAN OF FINANCIAL SERVICES FIRM BROAD INC ANOTHER TOPQUALITY TWOMBLY WORK FAILED TO SELL AT AN AUCTION BY SOTHEBY'S ARCHRIVAL CHRISTIE'S INTERNATIONAL PLC TUESDAY EVENING A GREAT DEAL OF ATTENTION WAS FOCUSED ON JEFF KOONS'S NEW DOUBLE SHELTON WET DRY TWO INDUSTRIAL VACUUM CLEANERS ENCASED IN PLEXIGLASS MR KOONS WAS ONE OF THE MOST CONTROVERSIAL ARTISTS TO COME TO PROMINENCE IN THE 1980S BECAUSE HIS FLIPPANT KITSCHY SCULPTURES SEEM TO MOCK THE COLLECTORS AND MUSEUMS THAT PAY SIX FIGURES FOR THEM THE VACUUMCLEANER WORK CARRIED AN ESTIMATE OF 100000 TO 150000 AND SOLD FOR 112500 BRUCE NAUMAN'S LIFESIZE FIVE MARCHING MEN AN ANATOMICALLY DETAILED SCULPTURE IN BLINKING NEON FAILED TO SELL IT CARRIED A PRESALE PRICE ESTIMATE OF 450000 TO 650000 PRICES REMAIN STRONG FOR WORKS BY SCULPTORS EVA HESSE AND ALEXANDER CALDER AND EVEN WORKS BY GEOMETRIC PAINTER FRANK STELLA WHICH HAD BEEN SELLING AT DEPRESSED PRICES STAGED A MODEST RECOVERY LAST NIGHT WAS THE LAST MAJOR AUCTION IN A TWOWEEK SERIES OF FINEART SALES THAT GAUGE THE TEMPERATURE OF THE ART MARKET IN NEW YORK EVEN SOME OF THE ART MARKET'S DEEPEST POCKETS WERE PRICED OUT OF THE RALLY LARRY GAGOSIAN AN INFLUENTIAL NEW YORK ART DEALER AND FREQUENT BIDDER SAID HE CHASED TWO OR THREE OF THE ARTWORKS BUT THEY ALL WENT TOO HIGH HE ADDED BY ANY MEASURE THIS WAS A VERY SUCCESSFUL AUCTION 9311110041 931111 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BEVERLY ENTERPRISES INC A SHELF OFFERING FOR UP TO 50 MILLION OF DEBT SECURITIES DYNAGEN INC AN OFFERING OF TWO MILLION SHARES OF SERIES A CONVERTIBLE PREFERRED STOCK VIA RAS SECURITIES CORP FARM & HOME FINANCIAL CORP AN OFFERING OF 40 MILLION OF ITS SUBORDINATED NOTES DUE 2003 VIA PIPER JAFFRAY INC DAIN BOSWORTH INC AND RAUSCHER PIERCE REFSNES INC LCI INTERNATIONAL INC AN OFFERING OF 35 MILLION COMMON SHARES VIA BEAR STEARNS & CO MERRILL LYNCH & CO AND ROBINSONHUMPHREY CO NORTHERN TELECOM LTD AN OFFERING OF UP TO 400 MILLION OF DEBT SECURITIES TEMTEX INDUSTRIES INC AN OFFERING OF ONE MILLION COMMON SHARES VIA PENNSYLVANIA MERCHANT GROUP LTD AND WILLIAM K WOODRUFF & CO WR GRACE & CO AN OFFERING FOR UP TO 750 MILLION OF SECURITIES 9311110040 931111 PLAYTEX FP PLANNING IPO TO RAISE 2433 MILLION STAMFORD CONN PLAYTEX FP GROUP INC THE SUCCESSOR TO FOUR LEVERAGED BUYOUTS OF PLAYTEX PERSONALCARE BUSINESSES SAID IT PLANS TO RAISE 2433 MILLION THROUGH AN INITIAL PUBLIC OFFERING OF 20 MILLION SHARES THE MAKER OF TAMPONS HAIRCARE AND BABYCARE PRODUCTS IN WHICH SARA LEE CORP HAS A 25 STAKE ALSO SAID IT TERMINATED A PACT GIVING SARA LEE THE OPTION TO BUY ITS REMAINING SHARES PLAYTEX AND SARA LEE ALSO AGREED TO REDEEM CONVERTIBLE PREFERRED STOCK HELD BY SARA LEE AND TERMINATE CROSSLICENSING ARRANGEMENTS THE PLAYTEX STOCK OFFERING EXPECTED TO BE PRICED AT 13 A SHARE IS PART OF A RECAPITALIZATION DESIGNED TO EASE THE COMPANY'S DEBT LOAD THE RECAPITALIZATION WILL INCLUDE A PUBLIC OFFERING OF SENIOR SUBORDINATED NOTES BY PLAYTEX FAMILY PRODUCTS CORP A SUBSIDIARY AND BORROWINGS BY THE UNIT UNDER A NEW BANK AGREEMENT AFTER THE RECAPITALIZATION PLAYTEX SAID IT WILL HAVE 9252 MILLION IN LONGTERM DEBT IN 1992 THE COMPANY HAD SALES OF ABOUT 385 MILLION AND OPERATING EARNINGS OF ABOUT 104 MILLION INTEREST EXPENSE TOTALED 114 MILLION AND THE COMPANY HAD A LOSS FROM CONTINUING OPERATIONS OF 15 MILLION SALES FOR THE FIRST NINE MONTHS OF 1993 ROSE TO 3151 MILLION FROM 2924 MILLION A YEAR EARLIER 9311110038 931111 BUSINESS BRIEF FACTORY STORES OF AMERICA INC WILLEY CREEK GROUP TO SELL NINE FACTORY OUTLET CENTERS FACTORY STORES OF AMERICA INC SMITHFIELD NC SAID IT WILL ACQUIRE NINE FACTORY OUTLET CENTERS FROM WILLEY CREEK GROUP OF EXETER NH SIX OF THE PROPERTIES WILL BE PURCHASED FOR 109 MILLION IN CASH AND THE ASSUMPTION OF 24 MILLION OF FIXEDRATE MORTGAGE DEBT THE COMPANY WILL RAISE THE CASH THROUGH A PUBLIC OFFERING OF FOUR MILLION SHARES OF COMMON STOCK THREE OF THE PROPERTIES WILL BE PURCHASED FOR ABOUT 345 MILLION IN NOTES DUE JUNE 30 1994 AS LONG AS CERTAIN OCCUPANCY LEVELS ARE MET FACTORY STORES A REALESTATE INVESTMENT TRUST THAT OPERATES 25 CENTERS WENT PUBLIC IN JUNE FOR THE THIRD QUARTER ENDED SEPT 30 THE COMPANY HAD 27 MILLION IN NET INCOME OR 46 CENTS A SHARE 9311110037 931111 MARKETING BRIEF NEW LINE CINEMA CORP THIRDQUARTER PROFIT GREW OVER SIXFOLD BUT STOCK SLIPS NEW LINE CINEMA CORP NEW YORK SAID THIRDQUARTER PROFIT ROSE MORE THAN SIXFOLD BUT SHARES OF THE FILM PRODUCER EASED AS THE EARNINGS CAME IN SLIGHTLY BELOW ANALYSTS' EXPECTATIONS NEW LINE SAID NET INCOME FOR THE QUARTER ROSE TO 37 MILLION OR 21 CENTS A SHARE FROM 600000 OR FOUR CENTS A SHARE A YEAR EARLIER WHEN THERE WERE FEWER SHARES OUTSTANDING REVENUE CLIMBED 25 TO 622 MILLION FROM 607 MILLION BOOSTED BY THE RELEASES OF MENACE II SOCIETY AND JASON GOES TO HELL THE FINAL FRIDAY THE VIDEO RELEASE OF NATIONAL LAMPOON'S LOADED WEAPON I AND REVENUE FROM OTHER PREVIOUS RELEASES NEW LINE'S STOCK FELL 25 CENTS TO 2475 IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AFTER THE EARNINGS CAME IN TWO CENTS SHY OF THE CONSENSUS PREDICTION OF ANALYSTS POLLED BY THE INSITUTIONAL BROKERS ESTIMATE SYSTEM 9311110036 931111 MARKETING & MEDIA ADVERTISING COMPETITIVE BIRTHCONTROL MARKET SEES A BARRAGE OF CONSUMER ADS BY LAURA BIRD A PROVOCATIVE NEW MAGAZINE AD SHOWS A WOMAN PRESSING HER HAND TO HER FOREHEAD AND ASKS HAVE YOU EVER BEEN AWAY FOR THE WEEKEND AND REALIZED YOU FORGOT YOUR BIRTHCONTROL PILLS THE AD MARKS THE ENTRANCE OF UPJOHN A KALAMAZOO MICH PHARMACEUTICAL COMPANY INTO THE BIRTHCONTROL BUSINESS WITH DEPOPROVERA A CONTRACEPTIVE INJECTION THE COMPANY'S NEW MULTIMILLIONDOLLAR CONSUMER AD CAMPAIGN CALLS DEPOPROVERA THE BIRTH CONTROL YOU THINK ABOUT JUST FOUR TIMES A YEAR THE COMING BARRAGE OF CONSUMER ADVERTISING FOR DEPOPROVERA HOWEVER IS LIKELY TO MAKE WOMEN THINK ABOUT IT MORE OFTEN THAN THAT INDEED UPJOHN'S PUSH COMES JUST AS THE PRESCRIPTION CONTRACEPTIVE MARKET IS BEING HIT WITH UNPRECEDENTED LEVELS OF COMPETITION AND AGGRESSIVE MARKETING UNIT SALES OF ORAL CONTRACEPTIVES IN FOOD AND DRUG STORES WERE FLAT DURING THE YEAR ENDED JUNE 30 WITH DOLLAR SALES UP JUST 4 TO 129 BILLION ACCORDING TO DUN & BRADSTREET'S IMS AMERICA LTD'S NATIONAL PRESCRIPTION AUDIT PLUS SURVEY AS A RESULT THE BIG PLAYERS IN THE MARKET HAVE STEPPED UP CONSUMER ADVERTISING JOHNSON & JOHNSON'S ORTHO PHARMACEUTICAL CORP LAST YEAR RAN WHAT WERE BELIEVED TO BE THE FIRST CONSUMER ADS FOR A BRANDNAME BIRTHCONTROL PILL WITH A MAGAZINE SPREAD FOR ORTHONOVUM 7/7/7 THE ADS LISTED THE ADDED HEALTH BENEFITS AND POSSIBLE SIDE EFFECTS OF TAKING THE PILL THE EFFORT FOLLOWED BY THREE YEARS AN UNUSUALLY AGGRESSIVE PUSH BY A GENERIC BIRTHCONTROL PILL MAKER TINY LEXIS PHARMACEUTICALS WHICH OFFERED PURCHASERS OF ITS NEE 1/35 IN THE KANSAS CITY MARKET A 50 REBATE THE COMPANY EVEN AIRED A COMMERCIAL ON LOCAL TELEVISION STATIONS AMERICAN HOME PRODUCTS' WYETHAYERST LABORATORIES INC ALSO HAS BEEN RUNNING CONSUMER ADS FOR THE NORPLANT CONTRACEPTIVE IMPLANT BESIDE A PHOTO OF A WOMAN DRESSED IN BUSINESS ATTIRE THE AD ANSWERS QUESTIONS ABOUT THE IMPLANT BUT UPJOHN'S AD BLITZ BRINGS A STRONGER DOSE OF CONSUMER MARKETING TO THE PRESCRIPTION BIRTHCONTROL BUSINESS THE CAMPAIGN PROMISES TO BE HUGE IT BREAKS IN NOVEMBER ISSUES OF MAGAZINES INCLUDING MODERN BRIDE AND NEWSWEEK AND WILL ULTIMATELY APPEAR IN ABOUT 26 MAGAZINES INCLUDING ROLLING STONE AND PEOPLE WHILE UPJOHN SAYS THE DEPOPROVERA ADS ARE TARGETED TO NO MORE NARROW AN AUDIENCE THAN SEXUALLY ACTIVE WOMEN OF CHILDBEARING AGE ITS POINTED REFERENCES TO BIRTHCONTROL PILLS AIM THE ADS SQUARELY AT WOMEN WHO USE THEM CONTRACEPTIVE MARKETERS ARE DOING MORE THAN ADVERTISING MONSANTO'S SEARLE LABORATORIES FOR EXAMPLE EARLIER THIS YEAR ENLISTED NONE OTHER THAN SHANNEN DOHERTY THE VIXEN OF BEVERLY HILLS 90210 FAME AS THE HOSTESS OF AN EDUCATIONAL VIDEO AIMED AT COLLEGE STUDENTS ENTITLED THE WAY IT WORKS WOMEN AND THE PILL SEARLE DISTRIBUTES THE MTVSTYLE EDUCATIONAL TAPE TO DOCTORS AND COLLEGE HEALTH CLINICS WHERE IT IS OFTEN PLAYED IN WAITING ROOMS IN THE TAPE MS DOHERTY PLAYS REPORTER INTERVIEWING WOMEN ABOUT WHAT THEY KNOW ABOUT BIRTH CONTROL THE SEARLE BRAND DEMULEN MAKES JUST ONE APPEARANCE DURING THE SECTION ON BIRTHCONTROL PILLS UPJOHN ITSELF TURNED TO ANOTHER HEROINE OF THE SMALL SCREEN MAUREEN MCCORMICK WHO PLAYED MARCIA IN THE OLD TVSITCOM THE BRADY BUNCH TO SERVE AS A SPOKESWOMAN EARLIER THIS YEAR SHE APPEARED AT THE COMPANY'S SEMINAR ON BIRTH CONTROL AND THE PROBLEM OF UNINTENDED PREGNANCY WHICH TOURED COLLEGE CAMPUSES IN 10 CITIES EARLIER THIS YEAR AND INTRODUCED CONSUMERS TO DEPOPROVERA AFTER 25 YEARS OF SPORADIC ATTEMPTS UPJOHN WON FOOD AND DRUG ADMINISTRATION APPROVAL TO MARKET THE INJECTABLE BIRTHCONTROL METHOD IN THE US LATE LAST YEAR UPJOHN SAYS IT ALREADY RACKED UP 32 MILLION IN US SALES OF THE PRODUCT IN THE FIRST NINE MONTHS OF 1993 EVEN BEFORE THE NEW AD CAMPAIGN PROMOTING THE DRUG AS A MORE CONVENIENT ALTERNATIVE TO BIRTHCONTROL PILLS THE ADS DISMAYED AT LEAST ONE CRITIC OF DEPOPROVERA SIDNEY WOLFE DIRECTOR OF PUBLIC CITIZEN'S HEALTH RESEARCH GROUP IN WASHINGTON WHO OPPOSED APPROVING THE DRUG IN THE US ALTHOUGH THE DRUG PRESENTS ADVANTAGES FOR INDIGENT AND UNEDUCATED WOMEN IN DEVELOPING NATIONS HE SAYS THERE WASN'T AN OVERWHELMING NEED FOR IT HERE AND IT CAN POSE HEALTH RISKS FOR SOME WOMEN ACCORDING TO UPJOHN'S AD THOSE INCLUDE AN INCREASED RISK OF BONE FRACTURES AND OSTEOPOROSIS AND FOR CERTAIN WOMEN A SLIGHTLY INCREASED RISK OF BREAST CANCER DR WOLFE SAID HE BELIEVES THE DEPOPROVERA EFFORT LIKE OTHER PRESCRIPTIONDRUG ADVERTISING AIMED AT CONSUMERS ACCENTUATES THE POSITIVE AND MINIMIZES THE NEGATIVE IT'S CLEARLY BEING BEING PITCHED TO A MIDDLECLASS MARKET DR WOLFE SAID OF THE ADS AND FOR WOMEN WHO KNOW HOW TO TAKE A BIRTHCONTROL PILL OR USE THE BARRIER METHOD THIS PRODUCT BECOMES A CONVENIENCE WITH NO OTHER ADVANTAGE AT ALL BUT HE ADDS CONVENIENCE SELLS BOSTON GLOBE THE BOSTON GLOBE A UNIT OF NEW YORK TIMES CO NAMED SIX BOSTON CONTENDERS IN ITS SEARCH FOR AN AGENCY TO REPLACE HILL HOLLIDAY CONNORS COSMOPULOS THEY ARE ARNOLD FORTUNA LAWNER & CABOT DOYLE ADVERTISING CLARKE GOWARD FITTS MATTESON HOUSTON EFFLER & PARTNERS INGALLS QUINN & JOHNSON AND MULLEN ADVERTISING WHO'S NEWS JEFF ATLAS FORMER CHAIRMAN OF THE SAN FRANCISCO SHOP ATLAS CITRON HALIGMAN & BEDECARRE WAS NAMED PRESIDENT OF THE SAN FRANCISCO OFFICE OF SAATCHI & SAATCHI CO'S SAATCHI & SAATCHI ADVERTISING MICHAEL JEARY PRESIDENT AND CHIEF EXECUTIVE OF THE OFFICE WAS NAMED CHAIRMAN AND REMAINS CHIEF EXECUTIVE 9311110035 931111 INTERNATIONAL BRIEF SIEMENS AG ELECTRONICS CONCERN'S PROFIT RISES SIXTH YEAR IN A ROW SIEMENS AG FRANKFURT REPORTED ITS SIXTH CONSECUTIVE RISE IN FULLYEAR NET PROFIT AND INDUSTRY ANALYSTS SEE THE ELECTRONICS CONGLOMERATE HEADED FOR ITS SEVENTH GROUP NET PROFIT CLIMBED TO 198 BILLION MARKS 117 BILLION FROM 196 BILLION MARKS IN FISCAL 1992 THE 13 RISE IN GROUP NET PROFIT FOR THE YEAR ENDED SEPT 30 STANDS IN CONTRAST TO THE PLUNGING PROFITS AND DIVIDENDS THROUGHOUT THE REST OF GERMAN INDUSTRY AEG AG THE COUNTRY'S SECONDLARGEST ELECTRONICS GROUP BEHIND SIEMENS IS EXPECTED TO POST A LOSS THIS YEAR AEG IS A UNIT OF DAIMLERBENZ AG SIEMENS KEPT ITS ANNUAL DIVIDEND FOR THE LATEST YEAR UNCHANGED AT 13 MARKS 768 IT SAID LOSSES NARROWED AT THE COMPANY'S TWO MOST TROUBLED DIVISIONS THE SIEMENSNIXDORF INFORMATION SYSTEM AG COMPUTER UNIT AND THE SEMICONDUCTOR DIVISION ALL THE REMAINING 15 DIVISIONS OF THE SPRAWLING CONCERN WERE PROFITABLE A SPOKESMAN SAID 9311110034 931111 POLITICS & POLICY DEBATE ON NAFTA MAY NOT AFFECT OUTCOME MUCH WHITE HOUSE CLAIMS GORE IS VICTOR BUT SUPPORT IS STILL LACKING IN HOUSE BY JACKIE CALMES AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE DECLARED VICTORY IN THE TELEVISED DEBATE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT BUT ON THE HOUSE FLOOR IT'S STILL BEHIND DEMOCRATIC AND REPUBLICAN LAWMAKERS PARTICULARLY THOSE WHO ARE FOR NAFTA OR STILL UNDECIDED EXPRESSED RELIEF AT WHAT THEY DESCRIBED AS A BAD PERFORMANCE BY ROSS PEROT IN HIS FACEOFF WITH VICE PRESIDENT AL GORE ON CNN'S LARRY KING LIVE TUESDAY NIGHT GIVEN MR PEROT'S FOLLOWING IN MANY CONGRESSIONAL DISTRICTS THE FORMER INDEPENDENT PRESIDENTIAL CANDIDATE IS A MAJOR CONCERN FOR A NUMBER OF LAWMAKERS PARTICULARLY HOUSE REPUBLICANS MANY HAD FEARED THAT THE ADMINISTRATION WOULD ELEVATE THE BILLIONAIRE BUSINESSMAN BY TAKING HIM ON I THOUGHT IT WAS A MISTAKE FOR THE ADMINISTRATION TO DEBATE PEROT IN THE BEGINNING BUT I THINK GORE CAME OUT LOOKING PRETTY GOOD SAID REP CW BILL YOUNG A FLORIDA REPUBLICAN WHO REMAINS UNDECIDED HE AND OTHER LAWMAKERS SAID THEY HADN'T HAD AN UNUSUAL NUMBER OF CALLS IN RESPONSE TO THE DEBATE AND THOSE THAT CAME IN WERE ABOUT EVENLY SPLIT FOR AND AGAINST NAFTA WITH JUST A WEEK REMAINING BEFORE THE CRITICAL HOUSE VOTE WEDNESDAY LAWMAKERS HEADED HOME FOR A LONG VETERANS DAY HOLIDAY WEEKEND MANY OF THEM APPREHENSIVE AT THE PROSPECT OF LASTMINUTE MOBILIZATIONS OF ANTINAFTA ACTIVISTS FROM MR PEROT'S UNITED WE STAND AMERICA ORGANIZATION OR FROM ORGANIZED LABOR IN THEIR DISTRICTS REP ROBERT MATSUI D CALIF A LEADER IN THE PRONAFTA EFFORT SAID OF THE GOREPEROT EXCHANGE I DON'T THINK IT CHANGED ANYTHING IN TERMS OF THE VOTE COUNT BUT HE CITED INITIAL POLLING RESULTS SUGGESTING THAT PUBLIC OPINION GENERALLY DIVIDED ON NAFTA HAD SHIFTED IN ITS FAVOR WHEN MEMBERS GO BACK HOME THIS WEEKEND HE SAID MAYBE PEOPLE WILL SAY HEY SUPPORT NAFTA' REP RICK BOUCHER D VA WHO JUST LAST WEEK ANNOUNCED HIS OPPOSITION TO NAFTA SAID I THINK IT WAS AN IRRELEVANT SIDESHOW THAT WILL NOT IN MY OPINION INFLUENCE ANY VOTES HERE STILL THE GOOD REVIEWS FOR MR GORE MAY MAKE IT EASIER FOR SOME UNDECIDED MEMBERS ULTIMATELY TO VOTE FOR THE TRADE AGREEMENT WHICH GRADUALLY ELIMINATES TRADE BARRIERS WITH MEXICO AND CANADA WHITE HOUSE AIDES BUOYANT OVER MR GORE'S PERFORMANCE SAID THAT PRESIDENT CLINTON TOUTED IT IN HIS PRIVATE CONVERSATIONS WITH MEMBERS OF CONGRESS AS EVIDENCE THAT A CASE FOR NAFTA CAN WIN OVER THE OPPOSITION I HONESTLY BELIEVE WE'RE GOING TO WIN IT NOW MR CLINTON SAID AT A NEWS CONFERENCE YESTERDAY AND THAT'S NOT JUST POLITICAL PUFF MEANWHILE HOUSE DEMOCRATIC WHIP DAVID BONIOR OF MICHIGAN THE ANTINAFTA LEADER REPEATED HIS CLAIMS THAT HE HAS ENOUGH VOTES TO DEFEAT THE TRADE AGREEMENT AT THE SAME TIME HE AND HIS ALLIES ACKNOWLEDGE THAT THE PRESIDENT STILL HAS LEVERAGE TO CONVERT LAWMAKERS THROUGH DEALS AND PERSUASION THE ADMINISTRATION AND ITS HOUSE ALLIES DISPUTED MR BONIOR'S FIGURES EVEN AS THEY DIFFERED ABOUT THEIR OWN THE WHITE HOUSE AND USANAFTA A PRONAFTA BUSINESS COALITION SAY THEY HAVE 205 VOTES OF THE 218 NEEDED TO WIN BUT PRONAFTA LAWMAKERS IN THE HOUSE PUT SUPPORT FOR THE TRADE PACT AT ABOUT 190 VOTES REP BILL RICHARDSON D NM A TOP PRONAFTA LIEUTENANT HAS SUGGESTED THAT THE LAWMAKERS' TALLY IS MORE CONSERVATIVE ABOUT COUNTING SOME WAVERING HOUSE MEMBERS INDEPENDENT SURVEYS SUGGEST THAT SUPPORT FOR NAFTA IS LOWER YET WITH THE WHITE HOUSE AT LEAST 40 VOTES SHORT TO WIN MR CLINTON HAS TO GO BEYOND PERSUADING THE SEVERAL DOZEN UNDECIDED LAWMAKERS AND CONVERT SOME OF THOSE HOUSE MEMBERS WHO'VE ALREADY SAID THEY'D VOTE NO SOME OF THE CONCESSIONS THE ADMINISTRATION HAS MADE TO SOLICIT SUPPORT HAVEN'T YIELDED THE VOTES HOPED FOR AT LEAST NOT YET SO FAR JUST TWO OF THE 23 HOUSE MEMBERS FROM FLORIDA ARE PUBLICLY SUPPORTING NAFTA DESPITE A SERIES OF DEALS ON SUGAR CITRUS AND VEGETABLE PRODUCTS IN THE PAST WEEK AIMED AT WINNING THEM OVER REP TOM LEWIS A FLORIDA REPUBLICAN WHO SERVES ON THE AGRICULTURE COMMITTEE CALLED A NEWS CONFERENCE TO RESTATE HIS OPPOSITION TO NAFTA AMID REPORTS HE'D BEEN SWAYED BY THE CONCESSIONS MR LEWIS DESCRIBED BY HOUSE GOP LEADERS WHO SUPPORT NAFTA AS A BELLWETHER FOR OTHER FLORIDA REPUBLICANS DID HOLD OUT HOPE THAT FURTHER MOVEMENT FROM THE ADMINISTRATION COULD CHANGE HIS MIND RIGHT NOW MY VOTE IS NO HE SAID ADDING THE DOOR'S AJAR OTHER FLORIDIANS ARE EXPECTED ULTIMATELY TO SUPPORT NAFTA THOUGH REP YOUNG PREDICTED MORE THAN HALF THE DELEGATION IN THE END WOULD VOTE AGAINST IT MR CLINTON CALLED HIS NEWS CONFERENCE TO GLOAT OVER HIS VICE PRESIDENT'S TV PERFORMANCE THE CASE FOR NAFTA COULD NOT HAVE BEEN MADE MORE FORCEFULLY OR ELOQUENTLY THAN IT WAS BY VICE PRESIDENT GORE THE PRESIDENT SAID ALSO IN A REFLECTION OF THE UNUSUAL BIPARTISAN ALLIANCE FOR NAFTA MR GORE GOT KUDOS FROM LEADING REPUBLICANS AMONG THEM REP NEWT GINGRICH OF GEORGIA THE NO 2 HOUSE GOP LEADER AND FORMER REP JACK KEMP WHO WAS AT THE CAPITOL TO LOBBY HOUSE REPUBLICANS FOR THE AGREEMENT THE PRESIDENT RATCHETED UP THE STAKES FOR NAFTA DECLARING THAT THE PACT MUST BE APPROVED FOR HIM TO RETAIN HIS LEVERAGE TO FIGHT FOR ECONOMIC CONCESSIONS THAT WOULD BENEFIT THE US IN WORLD TRADE IF CONGRESS REJECTS THE TREATY IT WOULD LIMIT MY ABILITY TO ARGUE THAT THE ASIANS SHOULD OPEN THEIR MARKETS MORE HE SAID HE ADDED MORE IMPORTANTLY MY ABILITY TO ARGUE THAT THE ASIANS AND THE EUROPEANS SHOULD JOIN WITH ME AND PUSH HARD TO GET A WORLD TRADE AGREEMENT THROUGH BY THE END OF THE YEAR WILL BE MORE LIMITED THE DAY AFTER THE SCHEDULED HOUSE VOTE ON WEDNESDAY MR CLINTON IS SCHEDULED TO TRAVEL TO SEATTLE TO MEET WITH THE HEADS OF JAPAN CHINA AND OTHER PACIFIC RIM COUNTRIES APPROVAL OF THE PLAN HE ADDED WILL GIVE ME ENORMOUS LEVERAGE WHEN I GET ON THE AIRPLANE THE DAY AFTER THE NAFTA VOTE THAT WOULD ALSO CLEAR THE WAY HE SAID FOR A LOWERING OF TRADE BARRIERS AROUND THE WORLD MR PEROT WAS BACK AT THE CAPITOL YESTERDAY TO LOBBY AGAINST NAFTA AT THE SAME TIME EVEN SOME OF HIS STAUNCHEST DEFENDERS WEREN'T EXTOLLING HIS DEBATE PERFORMANCE IT WASN'T HIS FINEST HOUR SAID GORDON BLACK A POLLSTER WHO HAS WORKED PERIODICALLY FOR MR PEROT THE ADMINISTRATION STRATEGY OF SPOTLIGHTING THE CONTROVERSIAL MR PEROT TO PERSONIFY THE ANTINAFTA CASE DISMAYED OTHERS ON THE ANTINAFTA SIDE PARTICULARLY ORGANIZED LABOR AND CONGRESSIONAL LEADERS OPPOSED TO THE PACT MOST HAVE KEPT THEIR DISTANCE FROM MR PEROT EVEN AS SOME UNIONS COOPERATE LOCALLY WITH PEROT ACTIVISTS THOMAS DONAHUE THE AFLCIO'S SECRETARYTREASURER SAID AT A NEWS CONFERENCE THAT ORGANIZED LABOR HAD SPENT ABOUT 325 MILLION ON ADVERTISING TO DEFEAT NAFTA HE TOOK ISSUE WITH SUGGESTIONS INCLUDING FROM MR CLINTON THAT LABOR IS THREATENING TO WITHHOLD FUNDS AND GRASSROOTS HELP FROM DEMOCRATS WHO SUPPORT NAFTA WE ARE NOT THREATENING ANYBODY HE SAID THOUGH HE ACKNOWLEDGED THAT SOME UNIONS ARE TELLING MEMBERS OF CONGRESS IF YOU VOTE TO SHIP JOBS OF OUR MEMBERS OUT OF THIS COUNTRY WE'RE NOT GOING TO SUPPORT YOU ANYMORE 9311110033 931111 CABLETV GIANT TCI IS SAID TO SEEK STAKE IN MATSUSHITA'S MCA NEW YORK TELECOMMUNICATIONS INC HAS APPROACHED MATSUSHITA ELECTRIC INDUSTRIAL CO ABOUT POSSIBLE VENTURES INCLUDING A PURCHASE OF AN INTEREST IN THE JAPANESE ELECTRONIC GIANT'S MCA INC UNIT PEOPLE FAMILIAR WITH THE SITUATION SAID TCI THE CABLETELEVISION COMPANY WHICH HAS AGREED TO BE ACQUIRED BY BELL ATLANTIC CORP IS SAID TO BE INTERESTED IN PURSUING ANOTHER STUDIO NOW THAT IT MAY BE FORCED BY ANTITRUST CONCERNS TO GIVE UP OR CURTAIL ITS ROLE IN QVC NETWORK INC'S BID FOR PARAMOUNT COMMUNICATIONS INC TCI COULDN'T BE REACHED TO COMMENT RUMORS OF TCI'S DISCUSSIONS WITH MATSUSHITA HAVE BEEN CIRCULATING FOR WEEKS AND LAST FRIDAY A MATSUSHITA SPOKESMAN IN JAPAN ISSUED A STRONG DENIAL THAT IT IS TALKING TO TCI ABOUT SELLING PART OF MCA THERE ARE NO SUCH DISCUSSIONS GOING ON SAID A MATSUSHITA SPOKESMAN THERE HAS BEEN NO SUCH APPROACH BY TCI AND THERE ARE NO DISCUSSIONS BEING MADE NOW MOREOVER THE SPOKESMAN SAID AT PRESENT WE HAVE NO PLANS TO SELL ANY PART OF MCA THE COMPANY COULDN'T BE REACHED LATE YESTERDAY TO COMMENT ON A REPORT THAT TCI HAD HELD A MEETING WITH MATSUSHITA REPRESENTATIVES IN NEW YORK YESTERDAY 9311110032 931111 DISNEY RECORDS LOSS ON CHARGE FOR EUROPE PARK ATTENDANCE DROP TROUBLES AT BOX OFFICE CONTRIBUTE TO 778 MILLION DEFICIT BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL BURBANK CALIF WALT DISNEY CO REPORTED ITS FIRST QUARTERLY NET LOSS SINCE NEW MANAGEMENT TOOK OVER NEARLY A DECADE AGO REFLECTING A 350 MILLION CHARGE FOR ITS INVESTMENT IN THE EURO DISNEY THEMEPARK PROJECT IN ITS FOURTH QUARTER ENDED SEPT 30 THE ENTERTAINMENT COMPANY HAD A NET LOSS OF 778 MILLION OR 15 CENTS A SHARE COMPARED WITH NET INCOME OF 2237 MILLION OR 42 CENTS A SHARE A YEAR EARLIER REVENUE GREW 5 TO 217 BILLION FROM 208 BILLION BUT OPERATING PROFIT DECLINED 10 TO 3567 MILLION FROM 3958 MILLION THE RESULTS REPRESENTED A CONVERGENCE OF NEGATIVE FACTORS INCLUDING THE 40CENTASHARE CHARGE RELATED TO THE EURO DISNEY INVESTMENT SHARPLY LOWER US THEMEPARK ATTENDANCE AND A POOR SUMMER AT THE MOVIE BOX OFFICE NEVERTHELESS ANALYSTS TOOK THE NEWS IN STRIDE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE DISNEY SHARES FELL 125 CENTS TO 41125 DISNEY'S OPERATING PROFIT FOR THE YEAR ROSE 20 AND DISNEY OFFICIALS SAID THE COMPANY STILL INTENDS TO MEET ITS USUAL GOALS OF 20 GROWTH IN EARNINGS AND RETURN ON EQUITY ANNUALIZED OVER FIVE YEARS THE ACHILLES' HEEL FOR DISNEY WAS EURO DISNEY SCA WHICH REPORTED A 899 MILLION LOSS FOR ITS FIRST FULL YEAR OF OPERATION INCLUDING A 37 BILLION FRENCH FRANC 627 MILLION CHARGE FOR STARTUP COSTS WITHOUT ONETIME ITEMS THE PARK NEAR PARIS HAD A 17 BILLION FRANC LOSS ALREADYBATTERED EURO DISNEY SHARES PLUNGED 13 IN EUROPEAN MARKETS DISNEY WAS HIGHLY PRAISED FOR FINANCIAL WIZARDRY WHEN IT SET UP EURO DISNEY RETAINING 49 AND RICH FEES FOR A RELATIVELY SMALL 160 MILLION INITIAL INVESTMENT BUT MINIMIZING THE RISK WOULD BENEFIT DISNEY ONLY IF IT WERE WILLING TO WALK AWAY FROM THE PROJECT WHILE DISNEY AND EURO DISNEY ARE CURRENTLY NEGOTIATING A FINANCIAL RESTRUCTURING OF THE PARK DISNEY DOESN'T WANT TO APPEAR LIKE THE CAVALRY GALLOPING TO THE RESCUE IT SAID EURO DISNEY WOULD FACE LIQUIDITY PROBLEMS IF THE TALKS AREN'T SUCCESSFUL STILL SIGNIFICANT FUNDING COMMITMENTS AND FEE CONCESSIONS SEEM LIKELY DISNEY'S LARGEST BUSINESS SEGMENT THEME PARKS SAW OPERATING PROFIT DECLINE 11 AND REVENUE DROP 6 DISNEY CITED LOWER ATTENDANCE AND HOTEL OCCUPANCY RATES AT THE PARKS WALT DISNEY WORLD IN FLORIDA AND DISNEYLAND IN CALIFORNIA ANALYST MARGO VIGNOLA AT SALOMON BROTHERS SAID SHE BELIEVED MOST OF THE ATTENDANCE DECLINE OCCURRED IN FLORIDA WHERE AIRFARE PROMOTIONS IN 1992 MADE FOR TOUGH COMPARISONS SHE ESTIMATED THAT OVERALL DISNEY THEMEPARK ATTENDANCE DECLINED 10 TO 12 IN AN INTERVIEW RICHARD NANULA CHIEF FINANCIAL OFFICER SAID THE DECLINE WASN'T THAT SHARP BUT HE ADDED THAT WE HAVEN'T RECOVERED MUCH FROM THE RECESSIONINSPIRED DOWNTURN IN DOMESTIC TOURISM HE SAID INTERNATIONAL TOURISM A STAPLE AT WALT DISNEY WORLD ALSO DECLINED DURING THE QUARTER IN THAT REGARD HE SAID PUBLICITY ABOUT CRIME IN FLORIDA MAY HAVE BEEN A FACTOR IN SEPTEMBER THE COMPANY'S FILMEDENTERTAINMENT UNIT HAS TYPICALLY CUSHIONED THE BLOW FROM FLAT THEMEPARK RESULTS IN RECENT RECESSION YEARS BUT DISNEY LACKED ANY MOVIE TO MATCH LAST YEAR'S SISTER ACT AND THE HOMEVIDEO SALES OF 101 DALMATIANS PROFITS FROM THE RECORDBREAKING VIDEO RELEASE OF ALADDIN KICK IN DURING THE CURRENT QUARTER THE DIVISION HAD A 22 OPERATINGPROFIT DECLINE ON A 12 GAIN IN REVENUE WHICH REFLECTED A SPEDUP FILMPRODUCTION AND VIDEORELEASE SCHEDULES SEPARATELY DISNEY CONFIRMED A REPORT IN THE WALL STREET JOURNAL ABOUT ITS PLAN TO BUILD A THEME PARK IN VIRGINIA AND IS EXPECTED TO PROVIDE DETAILS TODAY THE PARK AND RETAIL COMPLEX WITH A US HISTORY THEME IS PLANNED FOR PRINCE WILLIAM COUNTY WEST OF WASHINGTON NEAR MANASSAS VA DISNEY SAID IT TOOK THE EURO DISNEY CHARGE BECAUSE IT WAS UNCERTAIN ABOUT ITS ABILITY TO COLLECT ITS CURRENT RECEIVABLES FROM EURO DISNEY AND ABOUT WHAT ITS FUNDING COMMITMENTS WOULD BE DISNEY HAS SAID IT WILL PROVIDE FUNDING TO EURO DISNEY THROUGH NEXT SPRING WHEN THE NEGOTIATIONS ARE EXPECTED TO CONCLUDE THE EURO DISNEY COMPLEX OPENED IN APRIL 1992 WAS CONSIDERED THE MOST IMPRESSIVE THEMEPARK ADVANCE EVER DESPITE FRENCH GRUMBLING ABOUT CULTURAL IMPERIALISM BUT PROBLEMS PLAGUED THE PARK FROM THE BEGINNING INCLUDING EUROPEAN RECESSION AND A STRONG FRENCH FRANC COMPARED WITH SOME OTHER EUROPEAN CURRENCIES COLD WEATHER DAMPED ATTENDANCE AND MARKETING TO THE FRENCH PROVED DIFFICULT EURO DISNEY'S REALESTATE DEVELOPMENT PLANS FOR THE SURROUNDING AREA ALSO SUFFERED FROM DEPRESSED CONDITIONS NEAR PARIS UNTIL THE PARK CAN BE EXPANDED LEADING VISITORS TO STAY LONGER HOTEL OCCUPANCY PROBABLY WON'T RISE MUCH FROM THE CURRENT 55 AVERAGE RATE ANALYSTS SAY ADMISSION PRICES AND HOTEL RATES WERE CUT LAST MONTH AND MR NANULA SAID HOTELS WOULD CLOSE OFF SOME WINGS OF THE PARK THIS WINTER EURO DISNEY SAID YESTERDAY THAT IT WOULD REDUCE ITS WORK FORCE BY 950 PEOPLE DISNEY CHAIRMAN MICHAEL EISNER DECLINED TO COMMENT BUT IN A SEPTEMBER INTERVIEW HE CALLED EURO DISNEY PROBABLY THE BEST THING WE'VE EVER BUILT ALTHOUGH EXPENSES INVOLVED MAKE IT DIFFICULT FOR EURO DISNEY BECAUSE OF THE ENORMOUS COST AND LEVERAGE THAT IS ASSOCIATED WITH IT MR NANULA SAID THE RECEIVABLES DISNEY RESERVED AGAINST INCLUDE SERVICES DISNEY PROVIDED FOR EURO DISNEY'S NEW ATTRACTIONS INCLUDING A ROLLER COASTER TRAIN STATION AND ENTERTAINMENT STAGE FOUR MORE ATTRACTIONS WILL OPEN THERE BEFORE NEXT SUMMER AND A MAJOR THRILL RIDE WILL BE ADDED IN 1995 EURO DISNEY SAID DISNEY'S FULLYEAR EARNINGS WERE 2998 MILLION OR 55 CENTS A SHARE INCLUDING THE EURO DISNEY CHARGE AND A 3715 MILLION ACCOUNTING CHARGE EQUAL TO 68 CENTS A SHARE IN FISCAL 1992 THE COMPANY EARNED 8167 MILLION OR 152 A SHARE FULLYEAR REVENUE INCREASED 14 TO 853 BILLION FROM 75 BILLION BRIAN COLEMAN IN BRUSSELS CONTRIBUTED TO THIS ARTICLE 9311110031 931111 BUSINESS BRIEF DESTEC ENERGY INC COMPANY AGREES TO DEVELOP GAS PLANT IN THE NETHERLANDS DESTEC A DEVELOPER OF GASFIRED POWER GENERATION FACILITIES SAID CONSTRUCTION IS SCHEDULED TO BEGIN IN 1995 THE HOUSTON COMPANY HAS A 50 EQUITY INTEREST IN THE PLANT AND ITS PARTNERS INCLUDE TWO DISTRIBUTORS OF ELECTRICITY IN THE NETHERLANDS NV DELTA NUTSBEDRIJVEN WITH A 25 STAKE AND PROVINCIALE NOORDBRABANTSE ENERGIE MAATSCHAAPIJ WITH THE REMAINING STAKE ONE OF THE PLANT'S MAIN CUSTOMERS WILL BE A UNIT OF DOW CHEMICAL CO ON WHOSE SITE IT IS BEING BUILT 9311110030 931111 BUSINESS BRIEF DEFIANCE INC CONCERN SEES RISE IN SALES NET INCOME FOR FISCAL 1994 DEFIANCE INC EXPECTS STRONG AUTO AND TRUCK PRODUCTION WITH IMPROVED OPERATING EFFICIENCY TO BOOST SALES AND EARNINGS FOR THE FISCAL YEAR ENDING JUNE 30 MANAGEMENT IS COMFORTABLE WITH THE LOW END OF ANALYSTS' EARNINGS ESTIMATES OF 65 TO 70 CENTS A SHARE PRESIDENT AND CHIEF EXECUTIVE OFFICER JERRY A COOPER SAID AND 70 CENTS IS POSSIBLE IF AUTO AND TRUCK SALES REMAIN STRONG IN THE FIRST HALF OF CALENDAR 1994 THOSE ESTIMATES EXCLUDE AN EXTRAORDINARY GAIN OF NINE CENTS A SHARE IN THE FIRST QUARTER FROM A CHANGE IN ACCOUNTING FOR INCOME TAXES ESTIMATES FOR THE FULL YEAR INCLUDING THE EXTRAORDINARY GAIN WOULD RANGE FROM 74 CENTS A SHARE TO 79 CENTS A SHARE IN FISCAL 1993 THE AUTO AND TRUCK PARTS AND SERVICES CONCERN HAD NET INCOME OF 34 MILLION OR 54 CENTS A SHARE ON SALES OF 792 MILLION FISCAL SECONDQUARTER SALES ARE EXPECTED TO AT LEAST MATCH THE 192 MILLION OF THE FIRST QUARTER THAT WOULD BE AN INCREASE FROM 179 MILLION A YEAR EARLIER 9311110029 931111 PRUDENTIAL INSURANCE MAY BE TIED TO WOES OF ITS SECURITIES UNIT NEW YORK AGENTS EMPLOYED BY PRUDENTIAL INSURANCE CO OF AMERICA SOLD LIMITED PARTNERSHIPS WITHOUT HAVING BROKER LICENSES IN AT LEAST ONE STATE POTENTIALLY TYING THE PARENT COMPANY TO SERIOUS PROBLEMS INVOLVING ITS SECURITIESBROKERAGE UNIT PRUDENTIAL INSURANCE'S PRUDENTIAL SECURITIES UNIT WAS THE LARGEST SELLER OF PARTNERSHIPS IN THE 1980S MANY OF THOSE INVESTMENTS LATER INCURRED LOSSES NOW PRUDENTIAL SECURITIES FACES FEDERAL AND STATE ALLEGATIONS OF WIDESPREAD FRAUD AND CRIMINAL INVESTIGATIONS OF POSSIBLE KICKBACKS BETWEEN FORMER EXECUTIVES AND PARTNERS A SPOKESMAN FOR PRUDENTIAL SECURITIES THE INVESTMENTBANKING DIVISION OF THE FIRM CONFIRMED THAT A ROUTINE REGULATORY AUDIT BY OREGON REGULATORS IN 1991 DISCLOSED THAT INSURANCE AGENTS WITHOUT BROKER LICENSES HAD BEEN SELLING LIMITED PARTNERSHIPS AS REPORTED IN THE NEW YORK TIMES THE UNIT'S SPOKESMAN ADDED THAT IT WAS SPURIOUS TO ASSUME THAT WOULD OPEN THE PARENT COMPANY TO LIABILITY THE JOINTMARKETING PROGRAM UNDER WHICH INSURANCE AGENTS SOLD SECURITIES HAS BEEN ELIMINATED HE SAID 9311110028 931111 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 BENEFICIAL CORP 100 MILLION OF MEDIUMTERM NOTES DUE NOV 17 2008 PRICED TUESDAY AT PAR TO YIELD 647 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 85 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY UBS SECURITIES INC FEDERAL HOME LOAN BANK SYSTEM 198 MILLION OF NOTES DUE NOV 18 1998 PRICED AT PAR TO YIELD 53 ACCORDING TO MCM CORPORATEWATCH THE NOTES WHICH ARE NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 25 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST CHICAGO CAPITAL MARKETS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 600 MILLION OF MEDIUMTERM NOTES DUE NOV 25 1998 PRICED AT PAR TO YIELD 523 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 18 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO TRIDENT NGL HOLDING INC INITIAL OFFERING OF 63 MILLION COMMON SHARES PRICED AT 13 APIECE THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP ASSOCIATED ESTATES REALTY CORP INITIAL OFFERING OF 73 MILLION COMMON SHARES PRICED AT 22 APIECE THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS AVALON PROPERTIES INC INITIAL OFFERING OF 196 MILLION COMMON SHARES PRICED AT 2050 APIECE THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO ILLINOIS HEALTH FACILITIES AUTHORITY 115 MILLION REVENUE BONDS SERIES 1993 RUSHPRESBYTERIAN ST LUKE'S MEDICAL CENTER BONDS TENTATIVELY PRICED BY A GOLDMAN SACHS & CO GROUP TO YIELD FROM 48 IN 2001 TO 578 IN 2025 THE BONDS ARE INSURED BY MUNICIPAL BOND INVESTORS ASSURANCE CORP AND ARE RATED TRIPLEA BY BOTH MOODY'S AND S&P LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY 310 MILLION PROPOSITION C SALESTAXREVENUE SECOND SENIOR BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP WITH A BID SETTING TRUE INTEREST COST AT 54466 THE BONDS WERE PRICED FOR REOFFERING TO YIELD FROM 405 IN 1997 TO 5508 IN 2023 WASHINGTON SUBURBAN SANITARY DISTRICT MD 329 MILLION UNLIMITEDTAX VARIOUSPURPOSE BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 50808 THE BONDS RATED DOUBLEA1 BY MOODY'S AND DOUBLEA BY S&P WERE PRICED FOR REOFFERING TO YIELD FROM 275 IN 1994 TO 525 IN 20122103 BONDS DUE 20142018 ARE NOT PUBLICLY REOFFERED FEDERAL NATIONAL MORTGAGE ASSOCIATION 600 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1993G40 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 67 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SMITH BARNEY SHEARSON INC THE OFFERING SERIES 1993242 IS BACKED BY THE AGENCY'S STRIPPED 30YEAR 8 MORTGAGE SECURITIES WITH 40 MILLION IN PRINCIPALONLY SECURITIES FROM TRUST 251 AND 27 MILLION IN PRINCIPALONLYS FROM TRUST 237 EQUICREDIT CORP 1595 MILLION OF HOMEEQUITYLOAN ASSETBACKED CERTIFICATES PRICED IN TWO PARTS BY UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC THE CLASSES ARE RATED TRIPLEA BY BOTH MOODY'S AND S&P BASED ON A 100 INSURANCE GUARANTEE PROVIDED BY THE FINANCIAL GUARANTY INSURANCE CO THE CERTIFICATES EACH HAVE A 311YEAR AVERAGE LIFE AND WERE PRICED AT A CONDITIONAL PREPAYMENT RATE OF 25 THE LOAN SERVICER IS OLD STONE CREDIT CORP THE 1435 MILLION IN SENIOR CERTIFICATES WERE PRICED AS 5725S AT 1004375 TO YIELD 5601 AN 110BASISPOINT SPREAD ABOVE THE TREASURY'S WHENISSUED THREEYEAR NOTE THE 16 MILLION IN SUBORDINATE CERTIFICATES WERE PRICED AS 565S AT 999375 TO YIELD 5708 A 120BASISPOINT SPREAD ABOVE THE TRESAURY'S WHENISSUED THREEYEAR NOTE BANCO INTERATLANTICO SA BRAZIL 60 MILLION OF 9 EUROBONDS DUE NOV 11 1996 AT ISSUE AND REOFFER PRICE 99486 VIA BANQUE INDOSUEZ BONDS YIELD A SPREAD OF 470 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 1125 PAYABLE SEMIANNUALLY BANCO ITAMARATI SA BRAZIL 50 MILLION OF 9125 EUROBONDS DUE NOV 26 1996 AT ISSUE AND REOFFER PRICE 99705 VIA SAMUEL MONTAGU & CO BONDS YIELD MARGIN OF 475 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES ONE PAYABLE SEMIANNUALLY CREDIT LOCAL DE FRANCE FRENCH AGENCY 500 MILLION FRENCH FRANCS OF REVERSECOUPON FLOATINGRATE EURONOTES DUE DEC 6 2000 VIA CREDIT COMMERCIAL DE FRANCE ANNUAL COUPON 75 FOR FIRST YEAR THEREAFTER SEMIANNUAL COUPON OF 162 MINUS TWICE PARIS INTERBANK OFFERED RATE FEES 07 CREDIT LOCAL DE FRANCE FRENCH AGENCY 250 MILLION CANADIAN DOLLARS OF 7 EUROBONDS DUE JAN 14 2004 AT ISSUE PRICE 101035 VIA IBJ INTERNATIONAL LTD REOFFERED AT 9936 TO YIELD 709 A SPREAD OF 20 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT NOTE FEES TWO EUROPEAN INVESTMENT BANK SUPRANATIONAL C100 MILLION DOLLARS OF 7 EUROBONDS DUE DEC 29 2008 AT ISSUE PRICE 101325 VIA WOOD GUNDY INC REOFFERED AT 9945 TO YIELD 706 A MARGIN OF 18 BASIS POINTS ABOVE 75 CANADIAN GOVERNMENT BOND DUE 2003 FEES 225 GENERAL ELECTRIC CAPITAL CORP US PARENT 400 MILLION DUTCH GUILDERS OF 6 EUROBONDS DUE NOV 29 2002 AT ISSUE PRICE 1006 VIA SWISS BANK CORP NEDERLAND NV REOFFERED AT 9985 TO YIELD 6022 A MARGIN OF 20 BASIS POINTS ABOVE INTERPOLATED YIELD CURVE OF DUTCH STATE LOANS DUE JUNE 2002 AND FEBRUARY 2003 FEES ONE GMAC INTERNATIONAL FINANCE BV US PARENT 20 BILLION YEN OF FLOATINGRATE EURONOTES DUE SEPTEMBER 1997 AT ISSUE AND REOFFER PRICE PAR VIA LTCB INTERNATIONAL LTD PAYABLE QUARTERLY AT 45 BASIS POINTS OVER THREEMONTH YEN LONDON INTERBANK OFFERED RATE LAUNCHED OFF EURO MEDIUMTERMNOTE PROGRAM GUARANTOR GENERAL MOTORS ACCEPTANCE CORP FEES 02 GMAC INTERNATIONAL FINANCE BV US PARENT 10 BILLION YEN OF 375 EUROBONDS DUE MARCH 16 1999 AT ISSUE PRICE 101608 VIA LTCB INTERNATIONAL LTD REOFFERED AT 100058 TO YIELD 3735 LAUNCHED OFF EURO MEDIUMTERMNOTE PROGRAM GUARANTOR GENERAL MOTORS ACCEPTANCE CORP FEES 1875 HYDROQUEBEC CANADA 200 MILLION OF 65 EUROBONDS DUE DEC 9 1998 AT ISSUE PRICE 100275 VIA SG WARBURG SECURITIES LTD REOFFERED AT 9865 TO YIELD 683 A MARGIN OF 60 BASIS POINTS OVER COMPARABLE GILT GUARANTOR PROVINCE OF QUEBEC FEES 1875 NACIONAL FINANCIERA SNC GRAND CAYMAN BRANCH MEXICAN PARENT 100 MILLION OF COLLARED FLOATINGRATE EURONOTES DUE DECEMBER 1998 AT ISSUE AND REOFFER PRICE PAR VIA KIDDER PEABODY INTERNATIONAL LTD PAYABLE SEMIANNUALLY AT SIXMONTH DOLLAR LIBOR PLUS 025 POINT MINIMUM COUPON 625 MAXIMUM 10 GUARANTOR UNITED MEXICAN STATES FEES 075 NIKKODO CO JAPAN 80 MILLION OF 225 CONVERTIBLE EUROBONDS DUE MARCH 20 1998 AT ISSUE PRICE PAR VIA NOMURA SINGAPORE LTD BONDS CONVERTIBLE FROM DEC 17 TO MARCH 20 1998 INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM 25 TERMS TO BE FIXED WEDNESDAY CALLABLE FROM MARCH 20 1995 AT 103 UNTIL MATURITY SUBJECT TO SHARE PRICE BEING AT LEAST 130 OF CONVERTION PRICE FEES 285 LESS 035 FOR LEAD MANAGER PAYABLE SEMIANNUALLY NITTO DENKO NEDERLAND BV JAPANESE PARENT FIVE BILLION YEN OF 42 EUROBONDS DUE AUG 22 2000 AT ISSUE PRICE 101875 VIA SANWA INTERNATIONAL PLC BONDS YIELD 42 AFTER DEDUCTING FEES OF 1875 KEEPWELL AGREEMENT WITH NITTO DENKO CORP OFFICE NATIONAL DU DUCROIRE BELGIAN AGENCY 10 BILLION SPANISH PESETAS OF 8 MATADOR BONDS DUE DEC 3 1998 AT ISSUE PRICE 101 VIA BANCO DE NEGOCIOS ARGENTARIA SA BONDS YIELD 8126 AT 995 COMANAGERS' BREAKEVEN PRICE A MARGIN OF FIVE BASIS POINTS BELOW COMPARABLE SPANISH GOVERNMENT BOND AT LAUNCH GUARANTOR KINGDOM OF BELGIUM FEES 1625 LESS 0125 FOR LEAD MANAGER SUDWESTDEUTSCHE GENOSSENSCHAFTS ZENTRALEBANK AG GERMANY 150 MILLION MARKS OF 6125 EUROBONDS DUE NOV 28 2003 AT ISSUE PRICE 10150 VIA TRINKAUS & BURKHARDT KGAA BONDS YIELD 625 AT 99125 COMANAGERS' BREAKEVEN PRICE ON 1995 AND 2001 PAY DATES BONDS CAN BE CONVERTED INTO FLOATINGRATE NOTES DUE NOV 28 2008 PAYING COUPON OF FIVE BASIS POINTS BELOW SIXMONTH MARK LIBOR FEES 25 LESS 0125 FOR LEAD MANAGER 9311110027 931111 BUSINESS BRIEF ARTHUR ANDERSEN & CO WORLDWIDE REVENUE ROSE 8 IN YEAR ENDED AUG 31 ACCOUNTING AND CONSULTING FIRM ARTHUR ANDERSEN & CO SAID ITS WORLDWIDE REVENUE ROSE 8 TO 602 BILLION FOR THE FISCAL YEAR ENDED AUG 31 THE FIRM SAID THE STRENGTHENING OF THE US DOLLAR AFFECTED THE REVENUE RISE IF EXCHANGE RATES HAD BEEN SIMILAR TO A YEAR AGO ANDERSEN SAID WORLDWIDE REVENUE WOULD HAVE RISEN MORE THAN 11 ARTHUR ANDERSEN AND ITS ANDERSEN CONSULTING AFFILIATE WHICH TOGETHER CONSTITUTE THE LARGEST US ACCOUNTING FIRM SAID US REVENUE ROSE 9 TO 292 BILLION WORLDWIDE THE ARTHUR ANDERSEN BUSINESS UNIT WHICH INCLUDES THE AUDIT AND TAX SERVICES HAD A 6 RISE IN REVENUE TO 32 BILLION WHILE THE ANDERSEN CONSULTING BUSINESS UNIT HAD A 10 RISE TO 28 BILLION LAWRENCE A WEINBACH MANAGING PARTNERCHIEF EXECUTIVE NOTED THAT MORE THAN 50 OF TOTAL REVENUE CAME FROM OUTSIDE THE US MR WEINBACH SAID THE COMPANY PLANS TO SPEND ABOUT 30 MILLION OVER THE NEXT THREE YEARS TO DEVELOP A PRACTICE IN CHINA 9311110026 931111 BUSINESS BRIEF INFORMATION AMERICA INC TERMINATED ACQUISITION PLAN LEADS TO THIRDQUARTER LOSS INFORMATION AMERICA INC AN ATLANTABASED ONLINE LEGAL DATA COMPANY REPORTED A THIRDQUARTER LOSS CAUSED BY A ONETIME CHARGE RELATED TO THE TERMINATION OF PLANS TO BUY CERTAIN UNITS OF PARAMOUNT COMMUNICATIONS INC FOR THE QUARTER INFORMATION AMERICA REPORTED A LOSS OF 677000 OR 14 CENTS A SHARE ON REVENUE OF 67 MILLION DURING THE SAME PERIOD LAST YEAR THE COMPANY HAD NET INCOME OF 465000 OR NINE CENTS A SHARE ON REVENUE OF 47 MILLION WITHOUT THE ONETIME CHARGES WHICH TOTALED ABOUT 13 MILLION INFORMATION AMERICA WOULD HAVE EARNED THREE CENTS A SHARE IN THE LATEST THIRD QUARTER THE COMPANY ANNOUNCED IN OCTOBER THAT NEGOTIATIONS TO ACQUIRE THE INFORMATION SERVICES AND SOFTWARE UNITS OF PARAMOUNT HAD BEEN TERMINATED ALTHOUGH TERMS OF THE DEAL WEREN'T DISCLOSED THE TRANSACTION WOULD HAVE LEFT PARAMOUNT WITH A 49 STAKE IN INFORMATION AMERICA 9311110025 931111 BUSINESS BRIEF EAGLEPICHER INDUSTRIES INC PLAN IS REACHED TO EMERGE FROM CHAPTER 11 BANKRUPTCY EAGLEPICHER INDUSTRIES INC CINCINNATI SAID IT REACHED AN AGREEMENT ON A PLAN TO EMERGE FROM CHAPTER 11 BANKRUPTCY AS A RESULT THE DIVERSIFIED MAKER OF INDUSTRIAL PRODUCTS SAID IT WOULD RECORD A PREPETITION LIABILITY FOR ASBESTOSRELATED PERSONAL INJURY CLAIMS OF ABOUT 15 BILLION EAGLEPICHER SAID IT WILL BOOST ITS RESERVE FOR LIABILITIES ON ITS BALANCE SHEET BY 11 BILLION AND RECORD A CORRESPONDING CHARGE IN THE FOURTH QUARTER ENDING NOV 30 IN THE FOURTH QUARTER OF 1992 EAGLEPICHER'S NET INCOME WAS 73 MILLION OR 66 CENTS A SHARE UNDER THE PLAN ALL ASBESTOSRELATED PERSONAL INJURY CLAIMS WILL BE RESOLVED BY A CLAIMS ADMINISTRATION TRUST THAT WILL RECEIVE CASH DEBT SECURITIES AND SUBSTANTIALLY ALL OF THE COMMON STOCK OF THE REORGANIZED COMPANY A PREREQUISITE TO THE PLAN WOULD BE A COURT ORDER BARRING ASBESTOSRELATED CLAIMS AGAINST THE REORGANIZED COMPANY 9311110024 931111 WHAT'S NEWS BUSINESS AND FINANCE PACIFIC TELESIS PLANS TO BUILD A MASSIVE VIDEO NETWORK TO HOMES ACROSS ITS TERRITORY SPENDING MORE THAN 15 BILLION OVER SEVEN YEARS AT&T WILL BE A PRIME BENEFICIARY IN THE CALIFORNIA PHONE COMPANY'S EFFORT RECEIVING ORDERS OF SOME 5 BILLION THE SYSTEM WILL USE FIBEROPTIC LINES AND CABLE TVLIKE WIRES TO DELIVER PHONE CALLS DATA AND ENTERTAINMENT PROGRAMMING TO HOMES AND OFFICES BELLSOUTH INTENDS TO TAKE A FOURTHQUARTER PRETAX CHARGE OF 12 BILLION TO UPGRADE PHONE OPERATIONS AND PARE AN ADDITIONAL 2200 EMPLOYEES PRODUCING ITS FIRSTEVER QUARTERLY LOSS CONSUMER PRICES IN OCTOBER ROSE 04 THEIR BIGGEST RISE IN SIX MONTHS BUT ANALYSTS SAID THE INCREASE DIDN'T SIGNAL A BIG NEW ROUND OF INFLATION ECONOMISTS ARE RAISING THEIR FOOD INFLATION FORECASTS FOR 1994 IN THE WAKE OF A REPORT THAT THE MIDWEST CROP DISASTER IS SHRINKING GRAIN STOCKPILES PARAMOUNT WON THE BIDDING IN AN AUCTION FOR BOOK PUBLISHER MACMILLAN WITH A 5528 MILLION OFFER SHARES OF PARAMOUNT WHICH IS THE OBJECT OF A TAKEOVER BATTLE BETWEEN VIACOM AND QVC NETWORK FELL 50 CENTS TO 8050 WALT DISNEY POSTED A 778 MILLION LOSS FOR THE LATEST QUARTER REFLECTING A 350 MILLION CHARGE FOR ITS INVESTMENT IN THE EURO DISNEY THEME PARK STOCK PRICES RALLIED AS INVESTORS TURNED BULLISH ON THE PROSPECTS OF NAFTA THE INDUSTRIAL AVERAGE JUMPED 2348 POINTS TO 366355 THE 30YEAR TREASURY BENCHMARK BOND FELL 3/4 POINT AND ITS YIELD JUMPED TO 620 ON THE RISE IN OCTOBER CONSUMER PRICES MEXICAN STOCK PRICES SOARED 42 AMID THE NAFTA OPTIMISM AND THE PESO ROSE 24 AGAINST THE DOLLAR VW SAID IT HAD A PROFIT FOR THE THIRD QUARTER REFLECTING A CUT IN CAPITAL INVESTMENTS AND OTHER COST SAVINGS AND PRODUCTIVITY ENHANCEMENTS BROUGHT ON BY ITS PRODUCTION CHIEF LOPEZ OVER HALF OF THE INVESTORS WHO BOUGHT SHARES OF MONEYMARKET FUNDS AT BANKS WRONGLY BELIEVE THOSE FUNDS ARE FEDERALLY INSURED A SURVEY SAID METROPOLITAN LIFE INSURANCE WAS NOTIFIED BY TEXAS REGULATORS ALMOST FOUR YEARS AGO ABOUT QUESTIONABLE PRACTICES AT ITS TAMPA FLA OFFICE BUT FAILED TO CRACK DOWN ON THE TACTICS BRISTOLMYERS SQUIBB'S HEART DRUG CAPOTEN CUTS BY 50 THE NEARTERM RISK OF DEATH AND SLOWS THE PROGRESS OF SERIOUS KIDNEY DISEASE IN INSULINDEPENDENT DIABETES PATIENTS A STUDY SAID PAUL REICHMANN AND GEORGE SOROS SAID THEY PLAN TO BUILD THREE REALESTATE PROJECTS IN MEXICO CITY THAT COULD COST AS MUCH AS 15 BILLION KENDALL SQUARE RESEARCH IS BEING INVESTIGATED BY SEC OFFICIALS OVER POSSIBLE VIOLATIONS OF FEDERAL SECURITIES LAWS AT THE SUPERCOMPUTER MAKER MICROSOFT AND IBM SAID THEY WILL ACTIVELY PROMOTE USE OF MICROSOFT'S MOSTPOWERFUL OPERATING SYSTEM ON THE POWERPC MICROPROCESSOR ESCALATING A CHALLENGE TO CHIP MAKER INTEL BONDS LEHMAN BROTHERS TREASURY INDEX 551112 OFF 4164 COMMODITIES OIL 1655 A BARREL OFF 11 DOW JONES FUTURES INDEX 13451 UP 083 SPOT INDEX 12166 UP 127 DOLLAR 10715 YEN OFF 078 16885 MARKS OFF 00043 9311110023 931111 MUTUAL FUNDS INVESTORS LOOK TO HITCH WAGONS TO STAR RATINGS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE JOURNEY IS AS IMPORTANT AS THE DESTINATION OR SO THINK MUTUALFUND MARKETERS LATELY MANY FUNDS HAVE BEEN TOUTING THEIR FINE RISKADJUSTED RESULTS IT'S AN APPEALING NOTION THESE FUNDS HAVE PERFORMED WELL GIVEN THE RISK THAT THEY'VE TAKEN AS MEASURED BY MONTHTOMONTH SWINGS IN PERFORMANCE FUNDS WITH GOOD RISKADJUSTED RETURNS RANGE FROM SEDATE SHORTTERM BOND FUNDS WHICH HAVE GENERATED MODERATE RESULTS WITH NEGLIGIBLE SHAREPRICE SWINGS TO AGGRESSIVE GROWTHSTOCK FUNDS THAT HAVE GIVEN INVESTORS A WILD RIDE BUT COMPENSATED THEM WITH EXCEPTIONAL RESULTS IN ESSENCE RISKADJUSTED PERFORMANCE GIVES A SENSE OF HOW MUCH A FUND ZIGGED AND ZAGGED FOR EVERY YARD IT ADVANCED BUT SOME FUNDINDUSTRY OBSERVERS BELIEVE THE CLAIMS ABOUT RISKADJUSTED PERFORMANCE ARE GETTING OUT OF HAND AND PERHAPS LEADING INVESTORS TO MAKE POOR INVESTMENT DECISIONS YOU CAN'T SPEND RISKADJUSTED PERFORMANCE SAYS A MICHAEL LIPPER PRESIDENT OF LIPPER ANALYTICAL SERVICES A MUTUALFUND RESEARCH FIRM YOU CAN ONLY SPEND REAL PERFORMANCE NORMALLY THOSE WHO TALK ABOUT RISKADJUSTED RETURNS ARE TRYING TO COVER UP LESSTHANADEQUATE TOTALRETURN PERFORMANCE MR LIPPER'S SUMMIT NJ FIRM DOESN'T CALCULATE RISKADJUSTED PERFORMANCE INSTEAD THE MAIN SOURCE FOR THOSE CALCULATIONS IS LIPPER ANALYTICAL'S ARCHRIVAL MORNINGSTAR INC OF CHICAGO MORNINGSTAR ASSIGNS STAR RATINGS TO STOCK AND BOND FUNDS WITH TRACK RECORDS OF AT LEAST THREE YEARS FUNDS WITH THE BEST RISKADJUSTED RESULTS GET FIVE STARS THOSE THAT PERFORM POORLY GET JUST ONE MORNINGSTAR'S RATINGS ARE FINDING THEIR WAY INTO A GROWING NUMBER OF MUTUALFUND ADVERTISEMENTS EVERGREEN FUNDS FIDELITY INVESTMENTS AND KAUFMANN FUND HAVE ALL RECENTLY BOUGHT NEWSPAPER OR MAGAZINE ADS BOASTING ABOUT THEIR LOFTY STAR RATINGS T ROWE PRICE ASSOCIATES HAS RUN COMMERCIALS ABOUT RISKADJUSTED PERFORMANCE ON TELEVISION'S CNN CNN HEADLINE NEWS AND CNBC SUCH ADVERTISING OF THE STAR RATINGS MAKES US NERVOUS SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR'S FLAGSHIP NEWSLETTER MORNINGSTAR MUTUAL FUNDS NONETHELESS MR REKENTHALER THINKS THE STAR RATINGS HAVE TWO KEY ADVANTAGES OVER PURE PERFORMANCE MEASURES ONE THE LEVEL OF RISK THAT A FUND TAKES IS RELATIVELY CONSTANT HE SAYS IT'S EASY TO PROJECT THAT INTO THE FUTURE SECOND FUNDS THAT SCORE WELL ON A RISKADJUSTED BASIS TEND TO MAKE MONEY FOR PEOPLE THEY TEND TO HANG ONTO THEIR INVESTORS THROUGH THE TOUGH TIMES BETTER THAN A RISKIER FUND THAT HAPPENS TO BE A PERFORMANCE LEADER WHAT ABOUT THE FLAWS MR REKENTHALER AGREES THERE ARE MANY HE NOTES THAT FUNDS CAN HAVE A POOR STAR RATING BECAUSE THEIR INVESTMENT STYLE HAS BEEN OUT OF FAVOR DESPITE THEIR LOW STAR RATING THE FUNDS COULD BE WORTH BUYING BECAUSE THEIR INVESTING STYLE MAY RETURN TO VOGUE LOTS OF US AT MORNINGSTAR OWN FUNDS THAT AREN'T FIVE STARS HE SAYS CONVERSELY HE SAYS A FIVESTAR FUND MAY NOT BE A GOOD BUY AN INVESTOR MIGHT FOR INSTANCE BE DRAWN TO NEUBERGER & BERMAN ULTRA SHORT BOND FUND CURRENTLY THE ONLY FIVESTAR FUND OFFERED BY NEUBERGER & BERMAN MANAGEMENT THE NEW YORK MONEY MANAGER BUT IF YOU'RE A YOUNG INVESTOR WITH A LONG TIMEHORIZON BUYING THE ULTRA SHORT BOND FUND IS ONE OF THE DUMBEST THINGS YOU CAN DO SAYS GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER A CHICAGO PUBLICATION WHO WOULD MAKE A LONGTERM INVESTMENT IN A SHORTTERM BOND FUND MR PERRITT SAYS LONGTERM INVESTORS WOULD BE BETTER ADVISED TO PUT THE BULK OF THEIR MONEY IN STOCK FUNDS IN FACT A YOUNGER INVESTOR WOULD PROBABLY GET BETTER LONGTERM RESULTS BY BUYING ALMOST ANY OTHER NEUBERGER & BERMAN FUND EVEN THOUGH NONE OF THE OTHERS ARE RATED FIVE STARS DURING THE FIVE YEARS ENDED SEPT 30 ALL OTHER NEUBERGER STOCK AND BOND FUNDS HAVE OUTPERFORMED THE ULTRA SHORT BOND FUND ACCORDING TO MORNINGSTAR THE STAR RATINGS MAY GIVE A GOOD SENSE OF ANY ONE FUND'S RISKADJUSTED PERFORMANCE BUT IT'S NOT CLEAR THAT THE RATINGS ARE HELPFUL IF YOU'RE TRYING TO PUT TOGETHER A PORTFOLIO OF FUNDS WHICH TAKEN TOGETHER HAVE GOOD RISKADJUSTED PERFORMANCE YOU COULD HAVE TWO FUNDS WITH GREAT RISKADJUSTED RETURNS AND YOU PUT THEM TOGETHER AND THERE'S NO SYNERGY SAYS STEVEN SOMES A VICE PRESIDENT WITH STATE STREET RESEARCH & MANAGEMENT CO BUT IF YOU COMBINE A GROWTH FUND WITH LOUSY RISKADJUSTED RETURNS AND A UTILITY FUND WITH LOUSY RISKADJUSTED RETURNS TOGETHER THEY MIGHT HAVE A GREAT RISKADJUSTED RETURN ONCE YOU START THINKING ABOUT PORTFOLIOS THE PROBLEM CHANGES DRAMATICALLY CONSIDER T ROWE PRICE SPECTRUM GROWTH FUND A NOLOAD FUND THAT MAKES ITS MONEY BY INVESTING IN SIX OTHER T ROWE PRICE STOCK FUNDS AS WELL AS THE BALTIMORE FUND GROUP'S MONEYMARKET FUND THE MONEY FUND ISN'T RATED BY MORNINGSTAR BUT THE SIX STOCK FUNDS ARE ON AVERAGE THEY EARN 32 STARS THIS IS A WEIGHTED AVERAGE BASED ON THE RELATIVE SIZE OF THESE HOLDINGS WITHIN T ROWE PRICE SPECTRUM GROWTH SO HOW DOES T ROWE PRICE SPECTRUM GROWTH RATE MORNINGSTAR GIVES THE FUND FOUR STARS WHY DOES SPECTRUM GROWTH RATE HIGHER THAN ITS COMPONENT FUNDS THE SPECTRUM FUND'S MOVEMENT UP AND DOWN IS A LOT LESS THAN THAT OF THE COMPONENT FUNDS EXPLAINS PETER VAN DYKE PRESIDENT OF T ROWE PRICE SPECTRUM GROWTH THE CREDIT FOR THAT GOES TO THE FUND'S BROAD STOCKMARKET DIVERSIFICATION WHICH INCLUDES LARGECOMPANY STOCKS NATURALRESOURCES STOCKS AND SMALLCOMPANY STOCKS BUT MR VAN DYKE SAYS THE KEY TO THE FUND'S GOOD RISKADJUSTED RETURN HAS BEEN ITS INVESTMENT IN THE T ROWE PRICE INTERNATIONAL STOCK FUND FOR THE SAME REASON INVESTORS WHO ARE BUILDING THEIR OWN MUTUALFUND PORTFOLIO SHOULD ALSO PUT A HEFTY CHUNK IN FOREIGN STOCKS SAYS WILLIAM JOHN MIKUS A MANAGING DIRECTOR WITH FINANCIAL DESIGN A LOS ANGELES INVESTMENT ADVISER ADDING RISKY FOREIGN FUNDS SUCH AS IAI INTERNATIONAL FUND MONTGOMERY EMERGING MARKETS FUND AND WARBURG PINCUS INTERNATIONAL EQUITY FUND TO A PORTFOLIO OF US STOCK FUNDS WILL ACTUALLY IMPROVE YOUR PORTFOLIO'S RISKADJUSTED PERFORMANCE HE ARGUES IT'S VERY SIMPLISTIC JUST TO PICK FUNDS BASED ON THE NUMBER OF STARS THAT MORNINGSTAR HAS ASSIGNED MR MIKUS SAYS IF YOU'RE GOING TO BUY JUST ONE FUND BUY A FIVESTAR FUND BUT ALSO SCRATCH BELOW THE SURFACE A LITTLE BIT BUT IF YOU'RE BUYING A PORTFOLIO OF FIVE DIFFERENT FUNDS THERE MIGHT BE GOOD REASONS TO BUY THREESTAR FUNDS 9311110022 931111 POLITICS & PEOPLE THE FIVE BIG POLITICAL MYTHS ABOUT NAFTA BY ALBERT R HUNT A SENIOR HOUSE DEMOCRAT DISMISSES THE CONSEQUENCES OF A HOUSE REJECTION OF THE NORTH AMERICAN FREE TRADE AGREEMENT NEXT WEDNESDAY IN A FEW WEEKS IT'LL BE FORGOTTEN A DEMOCRATIC SENATOR WHO OPPOSES NAFTA FOR POLITICAL REASONS AND ISN'T PARTICULARLY PROUD OF IT SEES A SILVER LINING THIS WILL MAKE HEALTH CARE EASIER THESE LAWMAKERS SHOULD TALK TO HARRY MCPHERSON A FORMER TOP AIDE TO PRESIDENT JOHNSON AND A GENUINE WASHINGTON SAGE A NAFTA DEFEAT HE FEARS WOULD BE DEVASTATING FOR THE COUNTRY THE PRESIDENT AND THE DEMOCRATIC PARTY THE ONLY QUESTION IS HOW MUCH OF A CALAMITY WOULD IT BE HE'S WORRIED NOT SO MUCH ABOUT THE PARTICULARS OF THIS TREATY BUT ABOUT THE SIGNALS IT WOULD SEND INTERNATIONALLY IT WOULD SHOW THAT CLINTON CAN'T CONTROL HIS OWN PARTY AND MAKE HIM LOOK WEAK POLITICALLY HE REMEMBERS WHEN LYNDON JOHNSON TAUGHT HIM HOW ONCE A PRESIDENT SUFFERS A BIG SETBACK THE POLITICAL SHARKS SMELL BLOOD AND EVERYTHING ELSE IS HARDER YET IF NAFTA LOSES A DISTINCT POSSIBILITY IT'LL BE THE HOUSE DEMOCRATS WHO DO IT TO THEMSELVES LARGELY DUE NOT ONLY TO SUBSTANTIVE MISINFORMATION BUT TO POLITICAL MYTHS THAT HAVE OVERSHADOWED REALITIES THE FIVE BIG POLITICAL MYTHS ARE NAFTA ISN'T A PRESIDENTIAL PRIORITY SOME DEMOCRATS STILL INSIST THAT NAFTA ISN'T IMPORTANT FOR THE CLINTON PRESIDENCY HE DID GET OFF TO A LATE START BUT IN THE PAST TWO MONTHS HE HAS GIVEN 16 SPEECHES ON NAFTA AND PERSONALLY LOBBIED MORE THAN 100 HOUSE MEMBERS INCLUDING SEVEN PRIVATE MEALS WITH UNDECIDED LAWMAKERS HE KNEW HE UPPED THE STAKES BUT BELIEVED A DEFEAT WOULD BE SO DISASTROUS THAT HE HAD NO ALTERNATIVE NAFTA WOULD BE DEAD ON ARRIVAL IF GEORGE BUSH WERE PRESIDENT IMAGINE SENDING DAN QUAYLE TO TAKE ON ROSS PEROT TUESDAY NIGHT A WEEK FROM TODAY BILL CLINTON HEADS TO SEATTLE TO MEET LEADERS OF THE MAJOR ASIAN COUNTRIES THE PARTICIPANTS CONTROL 50 OF THE WORLD'S ECONOMY AND AS THE PRESIDENT ACKNOWLEDGED AT YESTERDAY'S PRESS CONFERENCE HIS ABILITY TO CONDUCT ECONOMIC NEGOTIATIONS WOULD BE LIMITED SIGNIFICANTLY IF HE ARRIVES THE DAY AFTER BECOMING THE FIRST US PRESIDENT TO LOSE A TRADE TREATY MR MCPHERSON FEARS AN EVEN GRIMMER SCENARIO DEFEATING NAFTA INCREASES THE RISKS THAT GATT GOES DOWN AND POTENTIALLY SETS THE STAGE FOR A TRADE WAR OF THE KIND WE HAD IN THE '20S AND '30S THIS IS EXTREMELY SERIOUS DOMESTICALLY THERE ALSO WOULD BE MAJOR CONSEQUENCES WHEN A PRESIDENT GIVES EVERYTHING HE HAS AND LOSES IT CERTAINLY HURTS HIM ON OTHER ISSUES SAYS THE VETERAN PRESIDENTWATCHER A NEW NAFTA WOULD BE BETTER IN THE TUESDAY NIGHT DEBATE WITH VICE PRESIDENT AL GORE ROSS PEROT SOUNDED THE RALLYING CRY OF NOT THIS NAFTA BUT GO BACK AND NEGOTIATE A GOOD TREATY THAT IGNORES THAT THERE'S A NEW CANADIAN GOVERNMENT THAT WILL PROBABLY SWALLOW THIS AGREEMENT BUT WOULD BE A HUGE HURDLE TO DRAFTING A NEW TREATY EVEN MORE TROUBLING IT'S NONSENSE TO THINK THAT JUST AFTER BEING HUMILIATED BY THE YANKEE COLOSSUS THE MEXICANS WOULD BECOME MORE ACCOMMODATING ASKED ABOUT A NEW NAFTA JAIME SERRA PUCHE THE ASTUTE MEXICAN TRADE MINISTER SAYS SURE IN ABOUT 50 YEARS THAT'S AN EXAGGERATION BUT IT WOULDN'T HAPPEN DURING THIS CONGRESS OR THIS CLINTON ADMINISTRATION AN ANTI VOTE BUYS PROTECTION FROM LABOR HOUSE DEMOCRATS ESPECIALLY THE 66 FRESHMEN FEAR THAT LABOR WILL RETALIATE IF THEY VOTE FOR NAFTA THIS IS A SHREWD BLUFF ON LABOR'S PART BUT ONLY INEXPERIENCED CONGRESSMEN ARE FALLING FOR IT NEXT YEAR'S CALENDAR INCLUDES A MINIMUM WAGE INCREASE A STRIKER REPLACEMENT BILL AND HEALTH INSURANCE ALL ISSUES AS IMPORTANT TO LABOR AS NAFTA UNIONS CERTAINLY AREN'T GOING TO WRITE OFF ESSENTIAL VOTES ON THOSE ISSUES OR DESERT DOZENS OF DEMOCRATS NEXT FALL SO THEY CAN BE REPLACED BY CONSERVATIVE REPUBLICANS VETERAN LAWMAKERS UNDERSTAND THIS SIXTERM REP HOWARD BERMAN OF CALIFORNIA A NAFTA SUPPORTER HAD A LOS ANGELES FUNDRAISER TWO WEEKS AGO AND GOT ALMOST 50000 FROM LABOR A NUMBER OF HOUSE DEMOCRATS HONESTLY SHARE LABOR'S FEARS OVER THIS AGREEMENT AND A SMALLER GROUP REFLECTS THE PRIVATE CANDOR OF ONE MEMBER WHO NOTES I'M WITH THE TEAMSTERS ON THIS AND I STAY BOUGHT FOR MOST OF THE REST HOWEVER THE WORRIES ARE MISPLACED SOME UNIONS MAY TRY TO MOUNT A SYMBOLIC PRIMARY CHALLENGE AGAINST ONE OR TWO PRONAFTA DEMOCRATS BUT LABOR IS MUCH TOO SMART TO FORCE A LITMUS TEST ON AN ISSUE IN WHICH THE DEMOCRATIC HOUSE SPEAKER AND SENATE MAJORITY LEADER ARE ON THE WRONG SIDE PROTECTION WILL BE BOUGHT FROM PEROT FENCESITTERS WORRY ABOUT ROSS PEROT'S THREAT TO ATTACK PRONAFTA LAWMAKERS NEXT YEAR BUT HE'LL ALSO GO AFTER MEMBERS WHO VOTE AGAINST A BALANCED BUDGET AMENDMENT OR ANY EXCUSE HE CAN FIND THIS IS ONLY THE FIGHT OF THE WEEK FOR PEROT SAYS ED ROLLINS THE GOP STRATEGIST WHO BRIEFLY RAN THE TEXAS BILLIONAIRE'S CAMPAIGN LAST YEAR YOU'RE NEVER OK WITH PEROT IF IT'S IN HIS INTEREST HE'LL SHOOT YOU BETWEEN THE EYES IN A MINUTE NAFTA IS MERELY A CONVENIENT VEHICLE FOR MR PEROT TO RALLY DISAFFECTED CITIZENS A POLITICAL EGO TRIP WHICH JUDGING FROM HIS DEBATE PERFORMANCE TUESDAY MAY BE WEARING THIN BUT ANY DEMOCRAT OR REPUBLICAN FOR THAT MATTER WHO HOPES TO BUY PEACE WITH THE TEXAS BILLIONAIRE IS ROLLING THE DICE BESIDES HE OR SHE TOO MIGHT BECOME A TARGET OF THOSE PRONAFTA MAFIASPONSORED HIT MEN FROM CUBA THE POLITICS ARE A CLEARCUT LOSER NAFTA'S OPPONENTS ARE FAR MORE INTENSE THAN ITS PROPONENTS THAT'S WHY THE CLINTON ADMINISTRATION IS WORRIED THAT ITS RECENT GAINS COULD BE OFFSET WHEN MEMBERS GO HOME FOR A LONG VETERANS DAY RECESS THIS WEEKEND BUT NERVOUS DEMOCRATS MAY BE SO FOCUSED ON THE MICROPOLITICS THAT THEY ARE IGNORING THE LARGER POLITICAL CALCULUS IN LAST MONTH'S WALL STREET JOURNAL/NBC NEWS SURVEY VOTERS BY A 2TO1 MARGIN SAID IT'S BETTER IF CONGRESS AND THE PRESIDENCY ARE CONTROLLED BY DIFFERENT POLITICAL PARTIES AND BY 72 TO 22 VOTERS TODAY BELIEVE THAT GRIDLOCK IN WASHINGTON IS AS BAD AS EVER DESPITE THE FACT THAT DEMOCRATS CONTROL BOTH BRANCHES A NAFTA DEFEAT WOULD ONLY ADD TO THIS ANXIETY AND THE MOST APPETIZING TARGET FOR FRUSTRATED VOTERS WOULD BE INCUMBENT DEMOCRATS A WEAKENED PRESIDENT IS VERY BAD FOR HOUSE DEMOCRATS IN TERMS OF THEIR POLITICAL SELFINTEREST ARGUES JOHN SASSO A LEADING DEMOCRATIC POLITICAL CONSULTANT CONVERSELY MR MCPHERSON NOTES A CLINTON VICTORY WOULD BE TERRIFIC FOR THE COUNTRY AND FOR HIM HE WOULD HAVE SHOWN THAT DESPITE HIS OTHER PROBLEMS HE REALLY IS A CHIEF OF STATE IN THAT VEIN THESE TWODOZEN WAVERING HOUSE DEMOCRATS WHO TOGETHER COULD TIP THE BALANCE IN FAVOR OF NAFTA SHOULD REMEMBER THE WORDS OF ANOTHER YOUNG DEMOCRATIC PRESIDENT THREE DECADES AGO THAT A RISING TIDE LIFTS ALL BOATS THAT'S TRUE IN POLITICS AS WELL AS ECONOMICS 9311110021 931111 ECONOMY CONSUMER PRICES INCREASED 04 DURING OCTOBER BUT INCREASE THE BIGGEST IN SIX MONTHS REFLECTS BOOST IN GASOLINE TAX BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSUMER PRICES IN OCTOBER SHOWED THEIR BIGGEST RISE IN SIX MONTHS BUT ANALYSTS SAID THE INCREASE DIDN'T SIGNAL A BIG NEW ROUND OF INFLATION THE LABOR DEPARTMENT SAID AMERICANS PAID 04 MORE FOR GOODS AND SERVICES IN OCTOBER THAN THEY DID IN SEPTEMBER WHEN PRICES OVERALL WERE FLAT A GOOD PART OF THE INCREASE HOWEVER STEMMED FROM THE GASOLINETAX BOOST THAT TOOK EFFECT OCT 1 EXCLUDING THE VOLATILE FOOD AND ENERGY SECTORS THE LABOR DEPARTMENT'S CONSUMER PRICE INDEX ROSE 03 LAST MONTH AFTER A 01 INCREASE IN SEPTEMBER THE REPORT SUGGESTS THAT INFLATION IS STILL FAIRLY WELLBEHAVED DESPITE RECENT SIGNS THAT THE ECONOMY IS GAINING MOMENTUM THE PRESIDENT OF THE NEW YORK FEDERAL RESERVE BANK WILLIAM MCDONOUGH SAID RECENT CONSUMERPRICE DATA HAVE BEEN RATHER GOOD TAKEN TOGETHER THE CONSUMERPRICE FIGURES AND TUESDAY'S REPORT SHOWING A DECLINE IN OCTOBER PRODUCER PRICES INDICATE INFLATION IS STABLE TO LOWER ONE MAIN REASON FOR THE SMALL PRICE INCREASES IS THE FAIRLY SLOW RISE IN LABOR COSTS OVER THE PAST FEW YEARS BECAUSE OF AN AMPLE SUPPLY OF WORKERS LABOR COSTS HAVE STABILIZED THEREFORE PRICE MEASURES HAVE STABILIZED SAID CHARLES LIEBERMAN DIRECTOR OF FINANCIAL MARKETS RESEARCH FOR CHEMICAL SECURITIES INC IN NEW YORK LABOR COSTS MAKE UP A BIG CHUNK OF WHAT CONSUMERS PAY FOR GOODS AND SERVICES THERE'S A LOT OF EVIDENCE SUPPORTING THE IDEA THAT INFLATION IS LIKELY TO STAY WELLBEHAVED IN THE SHORT TERM THE RISE IN MEDICAL COSTS HAS BEEN SLOWING RECENTLY DESPITE A 05 JUMP LAST MONTH AND CONTINENTAL BANK DOMESTIC ECONOMIST JOAN SCHEIDER POINTS OUT THAT MAJOR TOY RETAILERS ARE ISSUING COUPONS FOR THE CHRISTMAS SEASON THE PRICES OF MANY HOUSEHOLDCLEANING PRODUCTS HAVE BEEN CUT AND AIRLINES CONTINUE TO OFFER SPORADIC REDUCTIONS HOUSING COSTS ROSE THE SAME 02 LAST MONTH AS THEY DID IN SEPTEMBER DESPITE A PICKUP IN DEMAND NEWCAR PRICES ROSE 04 WHILE USEDCAR PRICES CONTINUED TO INCREASE FASTER THAN THE RATE OF INFLATION JUMPING 06 DURING THE MONTH THE RISE IN CONSUMER CAR PRICES RUNS COUNTER TO THE LARGE DROP IN CAR PRICES AT THE WHOLESALE LEVEL ANALYSTS SAID PART OF THE REASON FOR THAT DIFFERENCE IS THAT THE PRODUCER PRICE INDEX DOESN'T INCLUDE IMPORTEDCAR PRICES CARS FROM OVERSEAS ARE RISING FASTER IN PRICE THAN THOSE MADE IN THIS COUNTRY THE LABOR DEPARTMENT ALSO SAID AVERAGE WEEKLY EARNINGS ROSE 03 IN OCTOBER AFTER A DECLINE OF 08 THE MONTH BEFORE THE RISE STEMMED FROM A 05 INCREASE IN HOURLY EARNINGS AND A 03 INCREASE IN HOURS THE GAINS WERE PARTIALLY OFFSET BY A 05 INCREASE IN THE CONSUMER PRICE INDEX FOR URBAN WAGE EARNERS AND CLERICAL WORKERS SEPARATELY THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE BOUNCED UP BY 14000 LAST WEEK TO 354000 THE FOURWEEK MOVING AVERAGE OF CLAIMS CONSIDERED A BETTER MARKER FOR LABORMARKET CONDITIONS CLIMBED TO 348250 FROM 345750 THE WEEK BEFORE ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE SEASONALLY ADJUSTED CHANGES IN THE COMPONENTS OF THE LABOR DEPARTMENT'S CONSUMER PRICE INDEX FOR OCTOBER OCTOBER CONSUMER PRICE INDEXES 19821984 EQUALS 100 UNADJUSTED FOR SEASONAL VARIATION TOGETHER WITH THE PERCENTAGE INCREASES FROM OCTOBER 1992 WERE 9311110020 931111 BUSINESS BRIEF HYUNDAI GROUP SOUTH KOREA CONCERN BLASTS REFUSAL TO LIST THREE UNITS THE REFUSAL BY SOUTH KOREAN STOCK REGULATORS TO LIST THREE HYUNDAI GROUP SUBSIDIARIES ON THE OVERTHECOUNTER MARKET TRIGGERED OUTRAGE FROM COMPANY OFFICIALS WHO CLAIMED THE CONGLOMERATE WAS BEING POLITICALLY PERSECUTED SOUTH KOREA'S SECURITIES DEALERS ASSOCIATION A GROUP OF THE NATION'S BROKERAGE FIRMS SAID IT HAS PUT THE HYUNDAI REQUEST ON HOLD AGAIN AS IT COULD PUT DOWNWARD PRESSURE ON THE SEOUL BOURSE BY DRAINING FUNDS HYUNDAI SOUTH KOREA'S LARGEST FAMILYRUN CONGLOMERATE HAS BEEN PUSHING FOR THE LISTING OF HYUNDAI ELEVATOR CO HYUNDAI HOUSING & INDUSTRIAL DEVELOPMENT CO AND HYUNDAI HEAVY INDUSTRIES CO SINCE MARCH 1992 A SPOKESMAN AT THE ASSOCIATION SAID THE DEMAND BY HYUNDAI IS UNACCEPTABLE AS THE TOTAL VALUE OF THE HYUNDAI STOCKS IS TOO HUGE AN ESTIMATED 135 TRILLION WON 167 BILLION TO BE LISTED ON THE OTC MARKET PARTICULARLY CONSIDERING THE BEARISHNESS OF THE SEOUL BOURSE 9311110019 931111 INTERNATIONAL VOLKSWAGEN AG SAYS IT SHOWED QUARTERLY PROFIT BUT ANALYSTS ARE SKEPTICAL AUTO MAKER POSTS LOSS FOR NINEMONTH PERIOD BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL WOLFSBURG GERMANY VOLKSWAGEN AG SAID IT MOVED BACK INTO THE BLACK DURING THE THIRDQUARTER BUT INDUSTRY ANALYSTS REGARDED THE ANNOUNCEMENT WITH SKEPTICISM THEY MUST HAVE THE BEST ACCOUNTANTS IN THE WORLD BECAUSE I JUST CAN'T SEE THE COMPANY PRODUCING A REAL OPERATING PROFIT DURING THE PERIOD CONSIDERING THE DIFFICULTIES WE KNOW THEY ARE HAVING WORLDWIDE SAID PETER SCHMIDT JOINT MANAGING DIRECTOR OF AUTOMOTIVE INDUSTRY DATA LTD A BRITISHBASED CONSULTING CONCERN INDEED DESPITE A CONSOLIDATED THIRDQUARTER PROFIT OF 70 MILLION MARKS 414 MILLION EUROPE'S LARGEST CAR MAKER HAD A NINEMONTH LOSS OF 153 BILLION MARKS COMPARED WITH A YEAREARLIER PROFIT OF 549 MILLION MARKS AT THE PARENT COMPANY ALONE NINEMONTH RESULTS SWUNG TO A 768MILLIONMARK LOSS FROM A 289MILLIONMARK PROFIT A YEAR EARLIER CONSOLIDATED SALES IN THE NINEMONTH PERIOD FELL 11 TO 5636 BILLION MARKS FROM 6359 BILLION MARKS VEHICLE SALES DROPPED 15 TO 22 MILLION UNITS WHILE PRODUCTION FELL AN EVEN STEEPER 16 TO 22 MILLION VEHICLES ALTHOUGH VW DIDN'T BREAK OUT FULL THIRDQUARTER RESULTS IT INSISTED THAT ITS PROFIT IN THE LATEST QUARTER WAS SOLELY FROM BUSINESS ACTIVITIES THE BOTTOM LINE IMPROVED AS VW SLASHED ITS CAPITAL INVESTMENT PROGRAM BUT THE COMPANY ALSO POINTED TO OTHER COST SAVINGS AND PRODUCTIVITYENHANCING MEASURES SPEARHEADED BY EMBATTLED PRODUCTION CHIEF J IGNACIO LOPEZ DE ARRIORTUA MR LOPEZ HAILED AS A STRINGENT COSTCUTTER IS AT THE CENTER OF AN INDUSTRIAL ESPIONAGE DISPUTE BETWEEN VW AND HIS FORMER EMPLOYER GENERAL MOTORS CORP BUT VW CONCEDED THAT TIMES ARE STILL TOUGH WITH NO EXPECTATIONS FOR A FUNDAMENTAL IMPROVEMENT IN THE GLOBAL CAR MARKET UNTIL LATE 1994 THE MEDIUMTERM SITUATION IS CLEARLY UNSATISFACTORY WITH NO GROUNDS FOR EUPHORIA VW SPOKESMAN HANSPETER BLECHINGER SAID MEANWHILE WALTER HILLER A MEMBER OF THE COMPANY'S SUPERVISORY BOARD SAID IN A GERMAN NEWSPAPER INTERVIEW THAT NO DIVIDEND SHOULD BE PAID FOR 1993 LAST YEAR VW SLASHED ITS DIVIDEND TO TWO MARKS A SHARE FROM 11 MARKS THE YEAR BEFORE VW STILL SAID THE PARENT COMPANY WILL BREAK EVEN FOR THE YEAR SOMETHING CHAIRMAN FERDINAND PIECH HAS BEEN PROMISING MR BLECHINGER WOULDN'T SAY TO WHAT EXTENT FINANCIAL MEASURES SUCH AS DRAWING DOWN RESERVES MIGHT BE NECESSARY TO ACHIEVE BREAKEVEN RESULTS FOR THE YEAR ON A PURELY OPERATING BASIS THERE IS CLEARLY NO PROFIT AT VW SAID KARSTEN RAHLS AUTOMOTIVE INDUSTRY ANALYST AT MM WARBURG BANK INVESTMENT RESEARCH IN HAMBURG WHO ESTIMATED VW'S OPERATING LOSS IN THE NINEMONTH PERIOD TO BE ABOUT TWO BILLION MARKS COMPARED WITH A LOSS OF ABOUT 500 MILLION A YEAR EARLIER IN ITS HOME MARKET OF GERMANY THE VW GROUP SAW SALES PLUNGE 246 IN THE FIRST NINE MONTHS OF 1993 IN THE US PRODUCTION SNARLS AND INSUFFICIENT QUALITY AT VW'S MEXICAN PLANT STRANGLED SALES AND IN JAPAN VW GROUP'S SALES DROPPED 456 IN THE NINEMONTH PERIOD IN SPAIN COLLAPSING CAR SALES THE PESETA'S DEVALUATION HIGH INVESTMENT OBLIGATIONS AND INEFFICIENT PRODUCTION PLANTS HAVE CREATED A HEADACHE AT VW'S SEAT SA UNIT WHICH IS EXPECTED TO POST A 1993 LOSS OF 125 BILLION MARKS BEYOND CURRENTLY SCHEDULED LAYOFFS VW HOPES TO CUT ITS PERSONNEL EXPENSES BY AS MUCH AS 20 BY INSTITUTING A FOURDAY WORK WEEK AT ITS SIX GERMAN FACTORIES A MOVE THAT UNIONS ARE RESISTING BUT PLANS TO CLOSE THE ZONA FRANCA FACTORY NEAR BARCELONA SPAIN AND LAY OFF NEARLY 8000 WORKERS WILL LIKELY BE AN EXTREMELY COSTLY STEP FOR VW AND ISN'T YET REFLECTED IN THE COMPANY'S BOOKS 9311110018 931111 WOOLWORTH CORP SWUNG TO A NET LOSS IN ITS 3RD QUARTER FEDERATED'S NET FELL BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WOOLWORTH CORP REPORTED A LOSS FOR ITS FISCAL THIRD QUARTER AND FEDERATED DEPARTMENT STORES INC SAID NET INCOME DECLINED 36 BOTH RETAILERS HAD ONETIME CHARGES IN THE PERIOD BUT EVEN WITHOUT THE CHARGES THE RESULTS AT BOTH COMPANIES REFLECTED CONSUMERS' CAUTION AND WEAK DEMAND WOOLWORTH THE NEW YORKBASED VARIETY AND SPECIALTY RETAILER REPORTED A LOSS OF 452 MILLION OR 343 A SHARE FOR THE PERIOD ENDED OCT 30 AFTER A 480 MILLION CHARGE FOR CLOSING OR CHANGING THE FORMATS OF ABOUT 970 LARGELY UNPROFITABLE STORES A YEAR EARLIER THE COMPANY HAD NET OF 65 MILLION OR 50 CENTS A SHARE REVENUE DECLINED 46 TO 239 BILLION FROM 25 BILLION WITHOUT THE CHARGE WOOLWORTH WOULD HAVE EARNED 28 MILLION OR 23 CENTS A SHARE THE COMPANY LAST MONTH SAID IT EXPECTED EARNINGS TO FALL WELL BELOW LAST YEAR'S BECAUSE OF LACKLUSTER BACKTOSCHOOL SALES COUPLED WITH THE MOUNTING LOSSES FROM THE STORES THAT WILL BE EITHER CLOSED PERMANENTLY OR REOPENED UNDER OTHER RETAIL FORMATS EXCLUDING CHARGES OPERATING PROFIT AT ITS SPECIALTY STORES WHICH INCLUDE THE FOOT LOCKER AND KINNEY SHOESTORE CHAINS FELL 37 TO 73 MILLION FROM 116 MILLION A YEAR EARLIER OPERATING PROFIT AT WOOLWORTH'S GENERALMERCHANDISE STORES WHICH INCLUDE FW WOOLWORTH VARIETY STORES AND WOOLCO STORES IN CANADA FELL 56 TO 11 MILLION FROM 25 MILLION LAST YEAR REVENUE AT THE SPECIALTY STORES ROSE 18 WHILE REVENUE FROM GENERALMERCHANDISE STORES FELL 10 WHEN WOOLWORTH ANNOUNCED THE CLOSINGS AND CHARGE LAST MONTH IT SAID THE KINNEY AND WOOLWORTH STORES SLATED TO CLOSE HAD OPERATING LOSSES OF 36 MILLION IN ITS FIRST HALF WHICH WAS EQUAL TO THE TOTAL OPERATING LOSSES OF THE STORES IN ALL OF THE PREVIOUS FISCAL YEAR THE COMPANY SPED UP THE STORE CLOSINGS BECAUSE OF UNFAVORABLE ECONOMIC CONDITIONS IN THE US AND CANADA INCREASED COMPETITIVE PRESSURES AND A GENERALLY DEPRESSED CONSUMERSPENDING ENVIRONMENT FEDERATED BASED IN CINCINNATI REPORTED NET INCOME OF 203 MILLION OR 16 CENTS A SHARE FOR ITS THIRD QUARTER ENDED OCT 30 COMPARED WITH 316 MILLION OR 25 CENTS A SHARE A YEAR EARLIER THE DECLINE IN EARNINGS REFLECTS AN INCREASE IN THE FEDERAL INCOMETAX STATUTORY RATE ON CURRENT INCOME AS WELL AS ONETIME ADJUSTMENTS FOR DEFERRED INCOME TAXES AND RETROACTIVE APPLICATION OF THE RATE INCREASE WITHOUT THE ONETIME TAX ADJUSTMENTS FEDERATED WOULD HAVE EARNED 353 MILLION OR 28 CENTS A SHARE AN INCREASE OF 12 FEDERATED OPERATES 218 DEPARTMENT STORES UNDER THE ABRAHAM & STRAUS BLOOMINGDALE'S AND RICH'S NAMES AMONG OTHERS FEDERATED'S OPERATING PROFIT ROSE 36 TO 103 MILLION BUT FEDERATED SAID SALES AT STORES OPEN AT LEAST A YEAR WERE VIRTUALLY FLAT IN THE QUARTER OVERALL SALES WERE ALSO FLAT AT 179 BILLION ALLEN QUESTROM FEDERATED'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY WAS ON TRACK WITH OUR PROFIT EXPECTATIONS FOR THE QUARTER HE ADDED THAT REDUCING OPERATING EXPENSES HELPED TO COUNTER THE EFFECT OF WEAKER SALES AND HIGHERTHANEXPECTED LEVELS OF MERCHANDISE MARKDOWNS FOR THE QUARTER MR QUESTROM HAD A GUARDED OUTLOOK FOR THE REST OF THE YEAR THERE IS NOT A GREAT DEAL OF CONSUMER OPTIMISM OUT THERE WHICH IS WHY WE ARE CONTINUING TO VIEW THE REMAINDER OF THIS YEAR WITH A DEGREE OF CAUTION AND ARE PLANNING ACCORDINGLY HE SAID IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY WOOLWORTH SHARES WERE QUOTED AT 20875 UP 125 CENTS FEDERATED SHARES WERE AT 20625 UP 375 CENTS 9311110017 931111 WHAT'S NEWS WORLDWIDE THE HOUSE PASSED THE LONGDELAYED BRADY GUNCONTROL BILL REACTING TO THE PUBLIC'S FEAR OF STREET CRIME THE HOUSE APPROVED THE BRADY BILL WHICH WOULD REQUIRE A FIVEDAY WAIT AND A BACKGROUND CHECK ON PEOPLE WHO WANT TO BUY HANDGUNS LAWMAKERS VOTED 238189 FOR THE BILL AND SENT IT TO THE SENATE THE HOUSE HAD APPROVED THE BRADY BILL TWO YEARS AGO ONLY TO SEE IT FAIL AFTER BEING ATTACHED TO A LARGER CRIME BILL BLOCKED BY SENATE REPUBLICANS THIS TIME IT IS BEING KEPT SEPARATE IN THE HOPE THE SENATE WILL SEND IT TO CLINTON FOR SIGNING IN THE SENATE MEANWHILE A FARREACHING CRIME MEASURE WAS STALLED OVER AN AMENDMENT THAT WOULD BAN ASSAULTSTYLE WEAPONS CLINTON DECLARED GORE THE NAFTA DEBATE WINNER BUT STILL LACKED VOTES THE PRESIDENT PRAISING THE VICE PRESIDENT'S PERFORMANCE DURING A TELEVISED DEBATE ON TUESDAY NIGHT AGAINST NAFTA OPPONENT PEROT SAID I HONESTLY BELIEVE WE'RE GOING TO WIN IT NOW HOWEVER WITH LESS THAN A WEEK REMAINING BEFORE WEDNESDAY'S CRITICAL HOUSE SHOWDOWN ON THE TRADE AGREEMENT WITH MEXICO AND CANADA THE PRONAFTA FORCES STILL LACKED THE REQUIRED VOTES ORGANIZED LABOR HOPING TO KILL THE PACT PLANNED A FINAL PUSH TO REACH MEMBERS OF CONGRESS IN THEIR HOME DISTRICTS THIS WEEKEND CONGRESS SENT CLINTON A 241 BILLION DEFENSE SPENDING BILL THAT ENDORSES THE ADMINISTRATION'S MARCH 31 DATE FOR WITHDRAWING US FORCES FROM SOMALIA BY VOICE VOTE THE HOUSE APPROVED THE SPENDING PLAN FOR THE FISCAL YEAR THAT BEGAN OCT 1 LATER IN THE DAY THE SENATE ADOPTED THE PACKAGE 889 ISRAELI LEADER RABIN IS EXPECTED TO TELL CLINTON AT A WHITE HOUSE MEETING TOMORROW THAT CONDITIONS AREN'T RIPE FOR PROGRESS IN SYRIAISRAEL TALKS SEPARATELY CLINTON ASKED THE JUSTICE DEPARTMENT TO REVIEW AN ISRAELI REQUEST THAT HE REDUCE THE LIFE SENTENCE OF JONATHAN POLLARD CONVICTED OF SPYING FOR ISRAEL NEW MORTAR ATTACKS IN SARAJEVO KILLED EIGHT PEOPLE INCLUDING THREE CHILDREN AND WOUNDED ABOUT 25 THE ATTACKS CAME A DAY AFTER AT LEAST NINE PEOPLE WERE KILLED BY SHELLING MEANWHILE A UN EVACUATION OF SERBS FROM THE CAPITAL WAS AGAIN DELAYED RUSSIAN ELECTION OFFICIALS DISQUALIFIED EIGHT PARTIES THAT HAD SOUGHT TO TAKE PART IN A DEC 12 PARLIAMENTARY VOTE SAYING THE GROUPS FAILED TO MUSTER THE REQUIRED NUMBER OF SIGNATURES AMONG THE PARTIES BARRED WERE TWO HEADED BY HARDLINE OPPONENTS OF PRESIDENT YELTSIN THIRTEEN PARTIES RECEIVED PERMISSION TO FIELD CANDIDATES AN IRAQI BORDER PATROL OPENED FIRE ON A KUWAITI PATROL AND THE KUWAITIS FIRED BACK THE OFFICIAL KUWAIT NEWS AGENCY SAID ADDING THAT THERE WERE NO CASUALTIES THE BAGHDAD GOVERNMENT DENIED THAT ANY SHOOTING TOOK PLACE AND DENOUNCED THE KUWAITI REPORT AS COMPLETELY FABRICATED UN MILITARY OBSERVERS WOULDN'T COMMENT ASPIN ANNOUNCED THAT THE PENTAGON ACCEPTS CZECH REPORTS THAT LOW LEVELS OF CHEMICAL AGENTS WERE DETECTED DURING THE PERSIAN GULF WAR BUT THE DEFENSE SECRETARY SAID THERE WASN'T ANY EVIDENCE THAT THE CHEMICALS WERE RESPONSIBLE FOR THE WIDE RANGE OF VETERANS' HEALTH COMPLAINTS DEMOCRATS DEMANDED A FEDERAL INVESTIGATION INTO A CLAIM THAT THE CAMPAIGN OF NEW JERSEY GOVELECT WHITMAN USED MONEY TO KEEP BLACK VOTERS FROM THE POLLS THE WHITMAN CAMPAIGN DENIED THE CLAIM BY ITS MANAGER THAT REPUBLICANS GAVE MONEY TO BLACK MINISTERS IN RETURN FOR HELP IN SUPPRESSING TURNOUT A PROMILITARY HAITIAN JUDGE ORDERED SHELL AND EXXON TO IGNORE A UN EMBARGO AND DISTRIBUTE GASOLINE THROUGHOUT THE COUNTRY BUT SHELL STATIONS REMAINED CLOSED IN THE CAPITAL THE COURT RULING APPEARED TO BE A CHALLENGE TO THE UN OIL EMBARGO THAT BEGAN THREE WEEKS AGO IN AN ATTEMPT TO FORCE THE MILITARY TO RELINQUISH POWER CLINTON SHOULDN'T TREAT CHINA AS A THIRDWORLD PARIAH WHEN HE MEETS WITH CHINESE LEADER JIANG NEXT WEEK IN SEATTLE SINGAPORE'S SENIOR MINISTER SAID RATHER THE US SHOULD REGARD CHINA AS A STRATEGIC PARTNER HE SAID A BUS CARRYING US TOURISTS PLUNGED DOWN AN EMBANKMENT IN SOUTHEASTERN ENGLAND KILLING 10 PEOPLE AND INJURING MORE THAN 30 THE VEHICLE WAS TAKING 46 PEOPLE TO CANTERBURY CATHEDRAL AND LEEDS CASTLE 9311110016 931111 WHO'S NEWS LONGTIME NUCLEAR GADFLY DELIVERS STING TO OIL INDUSTRY IN ALASKA PIPELINE AUDIT BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL WHEN OWEN THERO AND HIS TEAM OF EXPERTS FIRST MET WITH ALYESKA PIPELINE SERVICE CO OFFICIALS THREE MONTHS AGO TO DISCUSS PLANS FOR THEIR GOVERNMENTORDERED AUDIT OF THE TRANSALASKA PIPELINE HE TRIED TO REASSURE THE WARY OIL MEN HEY WE MAY LOOK LIKE A BUNCH OF OLD GEEZERS MR THERO TOLD THEM BUT WE'RE FAIR AND WE'VE GOT A HELLUVA LOT OF EXPERTISE YESTERDAY MR THERO FORMALLY PRESENTED CONGRESS WITH THE FRUITS OF THAT EXPERTISE AT HEARINGS INTO ALLEGED ALYESKA SAFETY AND ENVIRONMENTAL PROBLEMS HEADED BY REP JOHN DINGELL D MICH MR THERO AND HIS TEAM MADE UP MOSTLY OF AGING ROCKET SCIENTISTS SEMIRETIRED ENGINEERS AND AT LEAST ONE EXPERT IN CHAOS THEORY UNCOVERED WIDESPREAD PROBLEMS AS HAS BEEN REPORTED THE PROBLEMS INCLUDE LAX MANAGEMENT FALSIFIED REPORTS AND FAULTY LEAKDETECTION SYSTEMS MR THERO A LANKY BEARDED 56YEAR OLD TOLD MR DINGELL'S ENERGY AND COMMERCE SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATION THAT CERTAIN SYSTEMS ALONG THE PIPELINE ARE ABYSMAL IT'S A MESS UP THERE HE SAID OF THE PIPELINE WHICH TRANSPORTS 25 OF US OIL PRODUCTION ALSO AT THE HEARING JIM BACA DIRECTOR OF THE BUREAU OF LAND MANAGEMENT WHICH REGULATES THE PIPELINE SAID THE GOVERNMENT WILL HOLD ALYESKA'S FEET TO THE FIRE TO FORCE IMPROVEMENT THE OIL INDUSTRY ACKNOWLEDGED THAT ALYESKA HAS SOME PROBLEMS AND PROMISED TO DO BETTER AS IT HAS BEFORE ALYESKA IS OWNED BY EXXON CORP BRITISH PETROLEUM LTD ATLANTIC RICHFIELD CO AND OTHER COMPANIES THAT RUN ALASKA'S NORTH SLOPE FIELD MIKE BOWLIN ARCO'S PRESIDENT AND CHIEF OPERATING OFFICER SAID THE 300PAGE THERO REPORT CONCERNS ME A GREAT DEAL AND SAID ARCO WOULD SEEK TO ACCELERATE IMPROVEMENTS IN ALYESKA'S OPERATIONS BUT FOR MUCH OF THE DAY THE STAGE BELONGED TO MR THERO THE SON OF METHODIST MISSIONARIES MR THERO SPENT HIS CHILDHOOD WORKING WITH HIS FATHER AMONG INDIAN TRIBES IN WASHINGTON STATE AND POOR PEOPLE IN DETROIT AFTER HIGH SCHOOL HE WENT TO WORK AT GENERAL ELECTRIC CO AND SOON WAS TESTING AND INSPECTING GUIDANCE SYSTEMS FOR NUCLEAR MISSILES AND WARHEADS AMONG OTHER THINGS MR THERO'S CAREER SHIFTED WHEN GE GAVE HIM A CHANCE TO OVERSEE A PROJECT TO ERECT MODULAR HOMES FOR POOR PEOPLE AS PART OF AN EXPERIMENTAL GOVERNMENTFUNDED PROGRAM DURING THE 1970S IT WAS THE MOST REWARDING EXPERIENCE HE RECALLS WE HAD A METHADONE CLINIC ON SITE WE HIRED DOWNANDOUT PEOPLE AND GAVE THEM A CHANCE IT WAS SOMETHING THAT WASN'T BENT ON DESTRUCTION LIKE THE MISSILE BUSINESS HE SAYS MR THERO EVENTUALLY LEFT GE AND EMBARKED ON A CAREER AS A SORT OF FREELANCE WATCHDOG OF THE NUCLEAR INDUSTRY HE WORKED CLOSELY WITH WHISTLEBLOWERS AT SUCH GOVERNMENT NUCLEAR SITES AS WATTS BAR IN TENNESEE CORROBORATING THOUSANDS OF ALLEGED SAFETY VIOLATIONS IN THE MID1980S IN A PRECEDENTSETTING ARRANGEMENT MR THERO WORKED AS A SPECIAL WATCHDOG AT COMANCHE PEAK A TEXAS UTILITIES CO NUCLEAR PLANT IN CENTRAL TEXAS FOR NEARLY FIVE YEARS HE KEPT AN OFFICE THERE AND SPARRED WITH COMPANY EXECUTIVES MR THERO'S WORK IN THE NUCLEAR INDUSTRY LED STEPHEN A WHITE A RETIRED ADMIRAL WHO RAN SOME OF THE GOVERNMENT'S TENNESEE VALLEY AUTHORITY PLANTS TO LABEL MR THERO A CANCER BUT IT WAS ALSO THE REASON THE INTERIOR DEPARTMENT TURNED TO HIM WE KNEW HE HAD EXPERIENCE AND WE KNEW HE'D BE FAIR BUT HE COULDN'T BE COWED SAYS JEFF ZABLER THE DEPARTMENT'S SPECIAL REPRESENTATIVE FOR PIPELINE MATTERS IN ASSEMBLING HIS TEAM MR THERO TURNED FIRST TO HIS MENTOR AT GE RALPH WILLIAMS WHO WAS RETIRED AND LIVING IN ORIENT NY A LEGEND IN THE MISSILE BUSINESS FOR HIS WORK ON EVERYTHING FROM ATLAS ROCKETS TO MX MISSILES MR WILLIAMS 72 GOT THE JOB OF CHECKING OUT ELECTRICAL SYSTEMS ON THE PIPELINE ANOTHER FORMER GE WEAPONS SYSTEMS ENGINEER HUGH J MCMENAMIN 58 WAS BROUGHT ON BOARD CHARLES CHIP HILL WHO AT 43 CALLS HIMSELF THE BABY OF THE GROUP AND IS AN EXPERT IN CHAOS THEORY ALSO SIGNED ON ROUNDING OUT THE TEAM WERE A FORMER NAVALINTELLIGENCE DATA SYSTEMS EXPERT A UNIVERSITY OF ALASKA ENGINEERING PROFESSOR AND TWO COMPUTER EXPERTS WITH EXPERIENCE IN ENGINEERING OR NUCLEAR PROJECTS FACED WITH ONLY 60 DAYS TO REVIEW ALYESKA'S SPRAWLING OPERATIONS THE TEAM FOCUSED ON THE TANKER TERMINAL AND THREE OF THE PIPELINE'S 10 PUMP STATIONS WHERE MASSIVE JET ENGINES POWER PUMPS THAT PROPEL OIL DOWN THE 800MILE LINE THE PACE WAS GRUELING LOTS OF 18HOUR DAYS AND MIDNIGHT MEETINGS AND FAST FOOD MR THERO SAYS IT DIDN'T TAKE LONG FOR THE TEAM TO GET A SENSE THAT ALYESKA HAD BIG PROBLEMS MR HILL ASSIGNED TO EVALUATE ALYESKA'S QUALITYCONTROL SYSTEMS WAS ASTOUNDED TO DISCOVER THAT SUPERVISORS WERE UNAWARE OF MAJOR FEATURES OF ALYESKA'S OWN QUALITYCONTROL MANUALS MANY STANDARD DOCUMENTS REQUESTED BY THE TEAM SUCH AS CERTAIN ENGINEERING DRAWINGS AND DESIGN SPECIFICATIONS COULDN'T BE LOCATED MR THERO SAYS ALYESKA SIMPLY MADE UP SOME DOCUMENTS AFTER THE TEAM REQUESTED THEM ALYESKA DECLINED COMMENT ONE CONVERSATION WITH AN ALYESKA MANAGER AT THE MARINE TERMINAL SEEMED TO SUM UP ALYESKA'S ATTITUDES MR THERO SAYS ASKED HOW HE COULD BE SURE HE WAS PROPERLY IMPLEMENTING QUALITY CONTROLS THE MANAGER POINTED OUTSIDE AND RESPONDED BECAUSE THERE'S NO OIL OUT THERE ON THAT GROUND THAT'S HOW IT WAS CRAZY UP THERE BUT IT WAS FASCINATING WORK MR THERO SAYS IT'S PROBABLY GOOD THAT HE THINKS SO THE GOVERNMENT HAS EXTENDED THE TEAM'S CONTRACT SO IT CAN DEVELOP SUGGESTIONS FOR FIXING PROBLEMS IT HAS IDENTIFIED 9311110015 931111 CREDIT MARKETS US 30YEAR TREASURY PRICES PLUNGE AS RALLY IN MEXICAN MARKET BOOSTS DOLLARBACKED BONDS BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK IF YOU DON'T LIKE SENTIMENTS IN THE WORLD'S BOND MARKETS THESE DAYS JUST WAIT A DAY AND THEY'LL CHANGE TAKE THE US TREASURY AND MEXICAN BOND MARKETS ON TUESDAY THE MEXICAN MARKET PLUNGED WHILE THE US MARKET RALLIED YESTERDAY THE OPPOSITE OCCURRED AFTER A CHEERY TWODAY RESPITE FROM THE GLOOM OF A THREEWEEK SELLOFF THE US TREASURY MARKET SAW THE RETURN OF BIG PRICE DROPS THANKS PARTLY TO A LACKLUSTER GOVERNMENT AUCTION OF 12 BILLION OF 10YEAR NOTES AND CONTINUED FEARS OF GROWING ECONOMIC STRENGTH THE PRICE OF THE BENCHMARK 30YEAR BOND PLUNGED ABOUT 3/4 POINT OR ABOUT 750 FOR A BOND WITH 1000 FACE VALUE TO 100 17/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF PRICE ROSE TO 620 FROM 614 AND AFTER A STARTLING PLUNGE TUESDAY IN REACTION TO A CURRENCY DEVALUATION AND WORRIES ABOUT THE NORTH AMERICAN FREE TRADE AGREEMENT THE MEXICAN BOND MARKET STAGED AN IMPRESSIVE RALLY YESTERDAY LONG AND INTERMEDIATETERM DOLLARDENOMINATED MEXICAN SECURITIES WERE THE MAIN BENEFICIARIES INCLUDING BRADY BONDS AND CORPORATE NOTES ACCORDING TO STEPHEN W DIZARD A MANAGING DIRECTOR AT SALOMON BROTHERS SHORTTERM PESODENOMINATED SECURITIES DIDN'T FARE AS WELL BUT THEIR YIELDS HAVE SLOWED THEIR PRECIPITOUS RISE OF THE LAST WEEK BRADY BONDS ARE SECURITIES ISSUED BY DEVELOPING NATIONS AS PART OF A DEBT RESTRUCTURING PROGRAM NAMED FOR ONE OF ITS ARCHITECTS FORMER TREASURY SECRETARY NICHOLAS BRADY BRADY BONDS ARE MADE FROM DEFAULTED FOREIGN COMMERCIAL BANK LOANS THAT HAVE BEEN CONVERTED INTO BONDS THE PRINCIPLE OF THE NEW BONDS OFTEN ARE BACKED BY ZEROCOUPON US TREASURY SECURITIES IN THE US MARKET SELLING STARTED EARLY YESTERDAY AFTER THE LABOR DEPARTMENT RELEASED ITS CONSUMER PRICE INDEX REPORT FOR OCTOBER AN IMPORTANT INFLATION MEASURE THE INDEX ROSE 04 IN LINE WITH EXPECTATIONS ANALYSTS SAID THE REPORT DIDN'T SHED NEW LIGHT ON THE INFLATION PICTURE IT WAS A NONEVENT SAID JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG BUT TRADERS SEIZED ON THE REPORT AS AN EXCUSE TO BEGIN DRIVING YIELDS HIGHER AHEAD OF THE AFTERNOON AUCTION OF 10YEAR NOTES THEY WERE NERVOUS THAT INVESTORS WOULDN'T BE INTERESTED IN THE NOTES AND SOUGHT TO BOOST YIELDS TO MAKE THE AUCTION MORE ATTRACTIVE CONTRIBUTING TO THE SELLOFF WAS A SURGE IN COMMODITIES LED BY A BIG JUMP IN SOME AGRICULTURAL PRICES THE WIDELY WATCHED COMMODITY RESEARCH BUREAU INDEX ROSE 32 POINTS TO CLOSE AT 22095 ITS HIGHEST LEVEL SINCE EARLY AUGUST RISING COMMODITY PRICES OFTEN ARE INTERPRETED BY INVESTORS AS A SIGN OF GREATER INFLATION BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF FIXEDINCOME INVESTMENTS BY AUCTION TIME THE YIELD ON THE 10YEAR NOTE HAD RISEN FROM 562 TO 569 BUT IT WASN'T ENOUGH TO LURE INVESTORS TRADERS SAID MOST CUSTOMERS HAD NO INTEREST IN BUYING MORE 10YEAR NOTES AND WERE MORE CONCERNED WITH BOOKING PROFIT AFTER A VERY STRONG YEAR FOR BOND RETURNS WITHOUT THE CUSHION OF INVESTOR DEMAND THE AUCTION WAS LEFT TO THE HANDS OF THE WALL STREET DEALER COMMUNITY AND SPECULATIVE ACCOUNTS THE TREASURY SOLD THE 10YEAR NOTES AT AN AVERAGE YIELD OF 569 SINCE THE TREASURY REOPENED THE LAST 10YEAR ISSUE WHICH WAS SOLD IN AUGUST THE NOTES SOLD YESTERDAY ACTUALLY HAD MATURITIES OF 9 3/4 YEARS THE BIDTOCOVER RATIO WHICH MEASURES DEMAND BY COMPARING THE NUMBER OF BIDS RECEIVED TO THOSE ACCEPTED WAS WELL BELOW AVERAGE AT 228 TO 1 ONCE TRADERS REALIZED HOW WEAK THE DEMAND REALLY WAS FOR THE 10YEAR NOTE EARLY YESTERDAY AFTERNOON THE MARKET RESUMED ITS DECLINE THE 10YEAR NOTE YIELDED 570 IN WHENISSUED TRADING LATE YESTERDAY THE THREEYEAR NOTE SOLD TUESDAY YIELDED 452 IN WHENISSUED TRADING LATE YESTERDAY UP FROM 447 MEANWHILE THE MEXICAN BOND MARKETS RALLIED YESTERDAY THANKS PARTLY TO A STRONG PERFORMANCE BY VICE PRESIDENT AL GORE IN TUESDAY'S DEBATE OVER NAFTA WITH ROSS PEROT INVESTORS ALSO WERE PLEASED WITH THE MEXICAN GOVERNMENT'S MOVE TO DEVALUE ITS CURRENCY IN ADVANCE OF EXPECTED MARKET TURBULENCE RESULTING FROM THE CONGRESSIONAL VOTE ON THE TRADE TREATY SLATED FOR NOV 17 THE MARKET WAS VOTING IN FAVOR OF MEXICAN MONETARY POLICY AND THE INCREASING EFFECTIVENESS OF THE CLINTON ADMINISTRATION CAMPAIGN FOR NAFTA SAID MR DIZARD OF SALOMON BROTHERS DESPITE PREDICTIONS OF A VERY CLOSE VOTE ON THE TREATY MR DIZARD IS OPTIMISTIC THAT IT WILL PASS FOR THE FIRST TIME TODAY ALL OF OUR POLITICAL SOURCES SAID THUMBS UP ON THIS ONE HE SAID ACCORDING TO OTHER SALOMON TRADERS THERE WAS STRONG DEMAND FOR MEXICAN CORPORATE EUROBONDS WITH SEVERAL POSTING BIG PRICE GAINS THE 1 BILLION ISSUE OF 8 7/8 COUPON NOTES MATURING IN 1998 FROM CEMEX SA IS CONSIDERED A BENCHMARK OF THE MEXICAN MARKET YESTERDAY THE NOTES ROSE ABOUT 1/2 POINT OR ABOUT 5 FOR A BOND WITH 1000 FACE VALUE TO 103 3/8 TO YIELD 798 COMPARED WITH 811 ON TUESDAY CEMEX IS ONE OF THE WORLD'S LARGEST CEMENT COMPANIES A EUROBOND IS A SECURITY SOLD BY A FOREIGN ISSUER IN EUROPE AND IS USUALLY DENOMINATED IN DOLLARS MOST US INVESTORS CAN BUY THESE BONDS AFTER A SOCALLED SEASONING PERIOD USUALLY 90 DAYS MEXICAN BRADY PAR BONDS STAGED ONE OF THEIR BIGGEST RALLIES DURING VERY HEAVY TRADING ACCORDING TO SALOMON TRADERS AND MORE THAN MADE UP FOR BIG LOSSES ON TUESDAY BEFORE THE GOREPEROT DEBATE THE BONDS WHICH MATURE IN 2019 ROSE 3 1/4 POINTS OR 3250 FOR A BOND WITH 1000 FACE VALUE TO 79 THE YIELD DROPPED TO 821 FROM 859 ON TUESDAY THE BONDS HAD BEEN AT 78 ON MONDAY THEY'RE CALLED PAR BONDS BECAUSE THEY REPRESENT DEFAULTED DEBT PAPER THAT HAS BEEN CONVERTED TO BONDS AT THE DEBT'S FULL FACE VALUE SHORTTERM MEXICAN GOVERNMENT SECURITIES DENOMINATED IN PESOS KNOWN AS CETES DID NOT FARE AS WELL THOUGH A SHARP YIELD JUMP SEEMS TO BE OVER FOR THE MOMENT ON TUESDAY THE DAY OF THE GOREPEROT DEBATE AND THE PESO DEVALUATION THE MEXICAN GOVERNMENT SOLD ABOUT 1 BILLION OF CETES WITH MATURITIES RANGING FROM 28 DAYS TO TWO YEARS THANKS TO TURMOIL IN THE MARKET THE YIELDS OF THESE SECURITIES WERE SHARPLY HIGHER THAN DURING THE LAST MONTHLY AUCTION THE AUCTION RESULTS WERE ANNOUNCED YESTERDAY CETES MATURING IN 28 DAYS FOR EXAMPLE WERE LAST AUCTIONED AT A YIELD OF 1346 ACCORDING TO SALOMON BROTHERS THE NEW 28DAY CETES AUCTIONED TUESDAY YIELD 1723 THE HIGH SHORTTERM RATES ARE PART OF A STRATEGY OF THE MEXICAN CENTRAL BANK TO KEEP THE MEXICAN MARKET UNDER REASONABLE CONTROL AS IT HEADS INTO A PERIOD OF GREAT UNCERTAINTY IN ADVANCE OF THE NAFTA VOTE SAID ONE SALOMON TRADER US BOND MARKETS WILL BE CLOSED TODAY FOR THE VETERANS DAY HOLIDAY HERE ARE THE DETAILS FROM YESTERDAY'S 10YEAR TREASURY NOTE AUCTION AND TUESDAY'S THREEYEAR NOTE AUCTION RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT 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 NOTES ARE DATED NOV 15 1993 AND MATURE NOV 15 1996 ISSUERS GOT A FAVORABLE RECEPTION FOR MORE THAN 750 MILLION OF MUNICIPAL DEBT DESPITE GENERAL BOND MARKET WEAKNESS BUT RISING YIELDS ARE LIKELY TO DISCOURAGE ISSUANCE ACCORDING TO MARKET ANALYSTS THE INCREASE THEY NOTE MAKES REFUNDINGS LESS ATTRACTIVE THEY WERE A MAJOR FACTOR IN THIS YEAR'S RECORD VOLUME OF MUNICIPAL DEBT ISSUANCE AMONG ISSUERS WERE THE WASHINGTON SUBURBAN SANITARY DISTRICT MARYLAND AND LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY WHICH BOTH SOLD BONDS THROUGH COMPETITIVE BIDDING SEPARATELY ANALYSTS SAID OREGON FACES A MAJOR FISCAL CHALLENGE AFTER THE DEFEAT OF A PROPOSED 5 STATE SALES TAX IN TUESDAY'S SPECIAL ELECTION IT WOULD HAVE BEEN THE STATE'S FIRST SALES TAX THE VOTE COULD NEGATIVELY AFFECT THE STATE'S CREDIT RATING OVER THE NEXT YEAR IN 1990 OREGON VOTERS APPROVED A MEASURE THAT LIMITS LOCAL GOVERNMENTS IN RAISING PROPERTY TAX RATES EFFECTIVELY FORCING THE STATE TO FIND FUNDING FOR EDUCATION NOW THAT A SALES TAX IS OUT OF THE QUESTION OREGON NEEDS TO FIND OTHER OPTIONS OREGON'S NEARLY 5 BILLION OF GENERAL OBLIGATION DEBT IS RATED DOUBLEAMINUS BY STANDARD & POOR'S WITH A NEGATIVE OUTLOOK AND DOUBLEA BY MOODY'S INVESTORS SERVICE IN SECONDARY TRADING MUNICIPAL BOND PRICES FELL AS MUCH AS 5/8 POINT AMONG ACTIVE ISSUES NEW YORK STATE POWER AUTHORITY'S 525 COUPON REFUNDING BOND MATURING IN 2018 FELL 5/8 POINT TO 96 1/2 FOR A YIELD OF 546 CORPORATEDEBT ISSUANCE WAS QUIET WITH JUST THREE GOVERNMENT AGENCY OFFERINGS TOTALING 848 MILLION BONDS OF KAISER ALUMINUM'S KAISER ALUMINUM & CHEMICAL UNIT DECLINED IN PRICE ITS 12 3/4 COUPON NOTES MATURING IN 2003 DROPPED TWO POINTS OR 20 FOR A BOND WITH 1000 FACE VALUE TO 96 AND THE YIELD ROSE TO 1351 FROM 1312 A TRADER SAID WEIRTON STEEL BONDS ALSO TRADED LOWER ITS 11 1/2 COUPON NOTES MATURING IN 1998 DROPPED ONE POINT OR 10 FOR A BOND WITH 1000 FACE VALUE TO 105 3/4 THE YIELD ROSE TO 981 FROM 953 SAID A TRADER TRADING IN THE INVESTMENTGRADE MARKET WAS LACKLUSTER AS YIELD SPREADS MOSTLY WERE UNCHANGED TRADERS SAID WITH PRICES FOLLOWING TREASURYS LOWER OVER THE PAST WEEK GENERAL MOTORS ACCEPTANCE'S 8 1/2 COUPON NOTES MATURING IN 2003 ROSE BY 15 POINTS OR 1050 FOR A BOND WITH 1000 FACE VALUE TO 111 THE YIELD HAS DROPPED TO 685 FROM 705 THE UNIT OF GENERAL MOTORS RECENTLY ANNOUNCED STRONGERTHANEXPECTED EARNINGS MCDONNELL DOUGLAS 9 3/4 COUPON NOTES MATURING IN APRIL 2012 ROSE OVER THE PAST WEEK BY 3 5/8 POINT OR 3625 FOR A BOND WITH 1000 FACE VALUE TO 115 5/8 YESTERDAY THE YIELD HAS DROPPED TO 810 FROM 84 WESTINGHOUSE ELECTRIC'S 7 7/8 COUPON BONDS MATURING IN 2023 HAVE GAINED FOUR POINTS TO 95 OVER THE PAST WEEK THE YIELD HAS DROPPED TO 832 FROM 872 MORTGAGE SECURITIES TRADED AT LOWER LEVELS BUT NEITHER INVESTOR NOR DEALER WAS APT TO TAKE ON NEW POSITIONS BUT NEW MONEY MAY MOVE INTO THE MARKET IF NUMBERS RELEASED YESTERDAY BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION INDICATE WHAT THEY SEEM TO HOMELOAN PRODUCTION IS SLOWING ALL 6 1/2 SECURITIES FOR DECEMBER DELIVERY WERE OFF 9/32 NEAR THE CLOSE GINNIE MAES TRADED AT 99 11/32 FREDDIE MAC GOLDS CHANGED HANDS AT 99 17/32 AND FANNIE MAES WERE AT 99 10/32 OF THOSE MANAGERS WHO HAVE MADE NEW COMMITMENTS TO THE MARKET MOST DO THEIR SHOPPING AMONG CURRENT COUPONS OR THOSE SECURITIES REPRESENTING RECENTLY ORIGINATED HOME LOANS ANOTHER TREND HAS BEEN THE RELUCTANCE OF MANY MONEY MANAGERS TO BUY REAL ESTATE MORTGAGE INVESTMENT CONDUITS OR REMICS MADE BY CARVING UP MORTGAGE SECURITIES ITO VARIOUS CLASSES EACH WITH ITS OWN INVESTMENT CHARACTERISTICS THE FNMA REPORTED THAT THE ISSUANCE OF GUARANTEED MORTGAGEBACKED SECURITIES REACHED A RECORD 227 BILLION IN OCTOBER COMPARED WITH 218 BILLION IN SEPTEMBER THIS YEAR FANNIE MAE MBS ISSUANCE HAS REACHED 1651 BILLION THIS VOLUME REFERS TO SECURITIES SOLD INTO THE CAPITAL MARKETS BY LENDERS WHO HAD SOLD MORTGAGE LOANS TO FANNIE MAE HOWEVER FANNIE MAE'S COMMITMENT TO PURCHASE MORTGAGES FROM MORTGAGE BANKERS AND OTHER LENDERS RECENTLY DROPPED THE AGENCY SAID THE COMMITMENT NUMBER WAS 75 BILLION IN OCTOBER FROM SEPTEMBER'S PEAK OF 98 BILLION LYNN K ADLER CONTRIBUTED TO THIS ARTICLE 9311110014 931111 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE NOMINEE TO HEAD THE NEW EUROPEAN MONETARY INSTITUTE SAID CURRENCYEXCHANGE PACTS BETWEEN A LIMITED NUMBER OF EUROPEAN COMMUNITY NATIONS ARE PROBABLE AND DESIRABLE IN THE NEXT FEW YEARS ALEXANDRE LAMFALUSSY TESTIFYING BEFORE THE EUROPEAN PARLIAMENT ALSO RULED OUT AS UNWORKABLE THE IMPOSITION OF CAPITAL CONTROLS OR TRANSACTION TAXES TO STEM CURRENCY SPECULATION A PARLIAMENTARY PANEL UNANIMOUSLY ENDORSED HIS NOMINATION TO HEAD THE EMI TO OPEN JAN 1 IN FRANKFURT AND THE PARLIAMENT WILL VOTE NEXT WEEK MR LAMFALUSSY WHO WOULD HAVE A KEY ROLE IN THE EC'S PLANNED MONETARY UNION SAID THE BLOC'S SINGLE MARKET MIGHT NOT SURVIVE WITHOUT SOME SORT OF EXCHANGERATE STABILITY WHICH BILATERAL PACTS COULD PROVIDE SINCE THE EC LINKAGE SYSTEM EFFECTIVELY COLLAPSED LAST SUMMER HE DISMISSED CONCERNS THAT A LIMITED CURRENCY UNION WITH A CORE GROUP OF COUNTRIES COULD FRAGMENT THE EC INTO HAVES AND HAVENOTS HE SAID THE EC IS UNLIKELY TO MEET A 1997 TARGET FOR A COMMON CURRENCY ITALY AND THE EUROPEAN COMMUNITY COMMISSION DEADLOCKED ON THE PRIVATIZATION OF STEELMAKER ILVA SPA THE EC FAVORS LETTING ITALY ABSORB MUCH OF THE ITALIAN COMPANY'S DEBT BEFORE IT IS SPLIT UP AND SOLD BUT ITALY OPPOSES THE EC'S DEMAND FOR A HUGE CUT IN ILVA'S PRODUCTION CAPACITY THE UNEXPECTED IMPASSE THREATENS TO SINK A PLAN TO RESTRUCTURE THE EC STEEL INDUSTRY BY SLASHING PRODUCERS' VAST EXCESS CAPACITY AND HALTING GOVERNMENT SUBSIDIES INFLATION IN RUSSIA ACCELERATED IN OCTOBER WHEN CONSUMER PRICES ROSE AT A 25 MONTHLY RATE UP FROM 21 IN SEPTEMBER THE GOVERNMENT'S CENTER FOR ECONOMIC ANALYSIS SAID THE DATA CONTRADICT STATEMENTS BY RUSSIAN OFFICIALS THAT INFLATION WAS SUBSIDING THE CENTER CITED HIGHER BREAD PRICES WHICH ALMOST DOUBLED LAST MONTH AS SUBSIDIES WERE LIFTED AND SERVICE COSTS WHICH SOARED 61 THE MOST THIS YEAR PACED BY RISING TRAIN FARES DESPITE SIGNS THE EUROPEAN COMMUNITY RECESSION IS HITTING BOTTOM WITH INVESTOR AND CONSUMER CONFIDENCE IMPROVING THE EC SAID UNEMPLOYMENT WILL CONTINUE CLIMBING IT PREDICTED EC ECONOMIES WILL CONTRACT 04 THIS YEAR THEN GROW 13 NEXT YEAR AND 21 IN 1995 IT FORECAST UNEMPLOYMENT AT A RECORD 113 BY 1995 UP FROM 106 THIS YEAR 18 MILLION PEOPLE ARE JOBLESS AMID THE EC'S WORST SLUMP IN DECADES SEPARATELY THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT SLASHED TO 22 FROM 27 ITS FORECAST FOR INDUSTRIAL NATIONS' 1994 GROWTH KAZAKHSTAN AND UZBEKISTAN WILL INTRODUCE THEIR NEW CURRENCIES SIMULTANEOUSLY A DATE WASN'T SPECIFIED THE TWO FORMER SOVIET REPUBLICS USE OLDER RUBLES THAT AREN'T VALID IN RUSSIA THE NEW UZBEK SOM COUPON AND THE KAZAKH TENGE COULD HELP STEM THE TWO NEIGHBORING CENTRAL ASIAN REPUBLICS' FINANCIAL CHAOS THAT FOLLOWED THEIR DECISION LAST WEEK TO STAY OUT OF MONETARY UNION WITH RUSSIA THEIR RUBLES HAVE SUNK IN VALUE AS THE PUBLIC UNLOADED THEM FOR GOODS OR FOREIGN CURRENCY BEFORE THE MONEY BECOMES WORTHLESS MUSLIMS IN INDONESIA TOOK THEIR ANTILOTTERY CAMPAIGN TO PRESIDENT SUHARTO'S COMPOUND THE FIRST SUCH PROTEST SINCE HE TOOK OFFICE IN 1967 BUT CHANCES OF HALTING THE WEEKLY GAME OF CHANCE ARE SLIM MEANWHILE A DISTRICT IN EAST JAVA BANNED CIRCULATION OF LOTTERY TICKETS THERE MUSLIM GROUPS OPPOSE THE LOTTERY SAYING THAT IT IS A FORM OF GAMBLING WHICH IS PROHIBITED BY ISLAM AND THAT IT CAUSES SOCIAL PROBLEMS HURTING PEOPLE WHO TAKE ON DEBT TO BUY TICKETS MORE THAN 85 OF INDONESIA'S 185 MILLION PEOPLE ARE MUSLIM BUT THE PRESIDENT HAS SOUGHT TO ENSURE THAT INDONESIA ISN'T RUN AS A RELIGIOUS STATE THE FRENCH GOVERNMENT PROPOSED TO REFORM THE BROADCASTING SECTOR DRAFT LEGISLATION WOULD INCREASE TO 49 FROM 25 THE MAXIMUM STAKE THAT ANY ONE INVESTOR COULD HOLD IN A TELEVISION COMPANY THE MEASURE COULD TRIGGER A SWIFT RESTRUCTURING OF THE TV INDUSTRY THE OWNERSHIP LIMIT IMPOSED TO DETER POWER CONCENTRATIONS IN THE HIGHLY POLITICIZED SECTOR HAS SPAWNED COMPLEX SHAREHOLDING STRUCTURES AND UNWIELDY SEARCHES FOR CONSENSUS ON OPERATIONS FROM VARIED INVESTORS COMMUNICATIONS MINISTER ALAIN CARIGNON TOLD THE CABINET THAT THE PROPOSED BILL WOULD HARMONIZE MANAGEMENT RESPONSIBILITY AND THE CONTROL OF CAPITAL AND ENHANCE THE ABILITY TO COMPETE WITH FOREIGN RIVALS FRANCE'S CABLE TV INDUSTRY HAS BEEN A LAGGARD HE SAID THE BILL IS THE FIRST STEP IN A RESTRUCTURING PROCESS THAT WILL CONTINUE NEXT YEAR ANOTHER HOTLY CONTESTED ISSUE AMONG COMMERCIAL BROADCASTERS IS WHETHER THEY MAY EXPAND COMMERCIAL BREAKS DURING FEATURE FILMS ALLOWING SUBSTANTIAL EARNINGS INCREASES A STRIKE IN INDIA'S MAMMOTH MOVIE INDUSTRY WHICH TURNS OUT 800 TO 900 PICTURES A YEAR HALTED FILMING IN BOMBAY THE PRODUCTION CAPITAL THOUSANDS OF CREW MEMBERS WALKED OUT LAST FRIDAY DEMANDING PAY RAISES BETWEEN 15 AND 30 BEIJING ISSUED RULES TO PRESERVE THE CHINESE CAPITAL'S TRADITIONAL ARCHITECTURAL STYLE WHICH IS RAPIDLY DISAPPEARING THE CITY BANNED NEW MODERN MATCHBOX BUILDINGS WHICH HAVE SPROUTED BY THE THOUSANDS ANNUALLY DESPITE HEIGHT AND ZONING LIMITS IMPOSED IN 1985 9311110013 931111 TAXABLE MONEY FUNDS POST LITTLE CHANGE IN YIELDS FOR WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS CHANGED LITTLE IN THE WEEK ENDED TUESDAY WHILE INVESTORS ADDED TO ASSETS IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS REMAINED AT 269 IN THE LATEST WEEK ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 624 TAXABLE FUNDS TWO MORE THAN THE PREVIOUS WEEK GREW BY 474 BILLION TO 4781 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACCOUNTED FOR 137 BILLION OF THE INFLOW WHILE INDIVIDUAL INVESTORS PUT IN AN ADDITIONAL 337 BILLION 800 MILLION OF THAT COMING FROM ONE OF THE NEWLY REPORTING FUNDS WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE GROWTH IN ASSETS TO INVESTORS WHO ARE WARY BECAUSE OF LAST WEEK'S DECLINE IN BOND PRICES THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS EASED TO 265 FROM 266 WHILE THE 30DAY SIMPLE YIELD REMAINED AT 265 THE 30DAY COMPOUND YIELD STAYED AT 268 AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS SHORTENED BY ONE DAY TO 63 DAYS ASSETS OF 330 TAXEXEMPT FUNDS ONE MORE THAN THE PREVIOUS WEEK GREW BY 294 BILLION TO 10615 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY SHORTENED BY ONE DAY TO 67 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9311110012 931111 MARKETING & MEDIA TURNER BROADCASTING 3RDPERIOD NET FELL REFLECTING A CHARGE ATLANTA TURNER BROADCASTING SYSTEM INC REPORTED THAT THIRDQUARTER EARNINGS FELL 91 REFLECTING A ONETIME CHARGE AND A WEAK PERFORMANCE AT NTV A 24HOUR GERMAN NEWS SERVICE IN WHICH TURNER OWNS A STAKE THE CABLE PROGRAMMER SAID NET INCOME FELL TO 1 MILLION OR LESS THAN ONE CENT A SHARE FROM 12 MILLION OR FIVE CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 10 TO 501 MILLION FROM 456 MILLION THE RESULTS WHICH WERE SLIGHTLY BELOW ANALYSTS' EXPECTATIONS INCLUDED A 6 MILLION CHARGE FOR EARLY RETIREMENT OF DEBT THE BULK OF THE DECREASE HOWEVER STEMMED FROM A 13 MILLION FALLOFF IN TURNER'S SHARE OF EARNINGS FROM SEVERAL UNCONSOLIDATED INVESTMENTS PRIMARILY ITS STAKE IN NTV TURNER BOUGHT 275 OF THE NEWS CHANNEL IN MARCH AND IS REPORTEDLY GIVING MORE MANAGEMENT ATTENTION TO THE TROUBLED PROPERTY INDUSTRY OBSERVERS SAID THE 13 MILLION DROP WAS LARGER THAN ANTICIPATED I WAS LOOKING FOR ABOUT HALF THAT FIGURE SAID MARY L KUKOWSKI AN ANALYST FOR FIRST BOSTON CORP TED TURNER THE COMPANY'S PRESIDENT AND CHAIRMAN SAID IN A PREPARED STATEMENT THAT THE RESULTS WERE CONSISTENT WITH OUR PAST PHILOSOPHY OF SUSTAINING OPERATING LOSSES IN THE NEARTERM IN ORDER TO CREATE A VALUED ASSET IN THE LONGTERM IN LATE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE TURNER'S CLASS A SHARES FELL 375 CENTS TO 2625 WHILE ITS CLASS B SHARES FELL 25 CENTS TO 26625 IN THE FIRST NINE MONTHS THE COMPANY REPORTED A NET LOSS OF 254 MILLION OR 96 CENTS A SHARE COMPARED WITH EARNINGS OF 48 MILLION OR 19 CENTS A SHARE A YEAR EARLIER THE 1993 RESULTS INCLUDE AN ACCOUNTING ADJUSTMENT OF 306 MILLION REVENUE ROSE 13 TO 139 BILLION 9311110011 931111 WHO'S NEWS K N ENERGY INC K N ENERGY INC LAKEWOOD COLO STEWART A BLISS 60 YEARS OLD WAS NAMED A DIRECTOR OF THIS NATURAL GAS PIPELINE COMPANY INCREASING THE BOARD TO 10 MEMBERS HE RECENTLY RESIGNED AS CHIEF OF STAFF FOR COLORADO GOV ROY ROMER 9311110010 931111 INTERNATIONAL INSURERS JOIN PROTEST OF PLANNED MERGER BY VOLVO RENAULT STOCKHOLM TWO BIG INSURERS JOINED THE SHAREHOLDER OPPOSITION TO VOLVO AB'S PROPOSED MERGER WITH RENAULT OF FRANCE SKANDIA INSURANCE CO'S CHIEF EXECUTIVE BJOERN WOLRATH WARNED THAT FUNDAMENTAL CHANGES ARE NEEDED IN THE FRENCH GOVERNMENT'S SOCALLED GOLDEN SHARE AS WELL AS THE PROPOSED PRIVATIZATION OF RENAULT TO DISPEL SWEDISH INVESTORS' OPPOSITION TO THE CORPORATE MARRIAGE THOUGH HE STOPPED SHORT OF VOWING THAT SKANDIA WOULD VOTE AGAINST THE MERGER PLAN NEXT MONTH MR WOLRATH FUMED THAT VOLVO MANAGEMENT HAD LOST ITS GRIP ON THE STEERING WHEEL BY FAILING TO PROVIDE INVESTORS ADEQUATE INFORMATION ABOUT THE TRANSACTION SKANDIA HOLDS A 36 VOLVO VOTING STAKE MUTUAL INSURER WASA FORSAEKRING ALSO DECLARED IT MAY VOTE AGAINST THE MERGER PROPOSAL LIKE MOST OTHER CRITICAL SHAREHOLDERS WASA SAID IT WOULD AWAIT CLARIFICATIONS FROM VOLVO BEFORE MAKING A DECISION WASA HOLDS 12 OF VOLVO'S SHARE CAPITAL OUTSTANDING BUT A 03 VOTING STAKE VOLVO CHAIRMAN PEHR GYLLENHAMMAR WAS UPBEAT ABOUT CHANCES OF PROVIDING CLARIFICATIONS SOUGHT BY SKEPTICAL SHAREHOLDERS HE HINTED THAT THE FRENCH GOVERNMENT HAS MORE ROOM FOR MANEUVERING IN SHAPING POWERS UNDER THE GOLDEN SHARE THAN MANY SWEDISH CRITICS ADMIT THE GOLDEN SHARE WHICH WOULD GIVE THE FRENCH GOVERNMENT CERTAIN POWERS OVER CORPORATE STRATEGY WAS DESIGNED TO BE A GUARANTEE AGAINST A HOSTILE TAKEOVER OF THE MERGED ENTITY THE PLANNED MERGER OF VOLVO'S CAR AND TRUCK DIVISIONS WITH RENAULT TO FORM THE WORLD'S SIXTH BIGGEST AUTO GROUP WAS UNVEILED IN EARLY SEPTEMBER LAST WEEK VOLVO POSTPONED THE EXTRAORDINARY GENERAL MEETING BY A MONTH TO DEC 7 9311110009 931111 BUSINESS BRIEF CALDOR CORP RECORD NET INCOME IS POSTED FOR RETAILER'S THIRD QUARTER CALDOR CORP NORWALK CONN REPORTED RECORD NET INCOME FOR ITS SEASONALLY WEAK THIRD QUARTER BOOSTED BY STRONGER SALES IN HOME FURNISHINGS AND EXPENSE CONTROLS THE DISCOUNT RETAILER SAID THAT PROFIT FOR THE QUARTER ENDED OCT 30 ROSE TO 12 MILLION OR SEVEN CENTS A SHARE ON MORE SHARES OUTSTANDING FROM A MEAGER 139000 OR ONE CENT A SHARE A YEAR EARLIER SALES ROSE TO 547 MILLION FROM 473 MILLION A YEAR EARLIER SAMESTORE SALES FOR THE QUARTER ROSE 28 FROM A YEAR EARLIER SEPARATELY THE COMPANY SAID IT WILL INCUR A ONETIME AFTERTAX CHARGE OF ABOUT 23 CENTS A SHARE IN THE FOURTH QUARTER TYPICALLY THE COMPANY'S STRONGEST QUARTER FOR EARLY REDEMPTION OF DEBT IN FISCAL 1993 CALDOR REPORTED NET INCOME OF 363 MILLION OR 245 A SHARE FOR THE FOURTH QUARTER ENDED JAN 30 AND SALES OF 7505 MILLION 9311110008 931111 NATURE'S SUNSHINE PRODUCTS INC PROVO UTAH NATURE'S SUNSHINE PRODUCTS INC SAID IT IS ESTABLISHING A MARKETING UNIT IN VENEZUELA NATURE'S SUNSHINE PRODUCTS DE VENEZUELA SA TO BROADEN ITS ACTIVITIES IN LATIN AMERICA NATURE'S SUNSHINE ALSO HAS UNITS IN MEXICO AND COLOMBIA THE COMPANY SAID INTERNATIONAL ACTIVITIES ACCOUNT FOR 27 OF ITS REVENUE 9311110007 931111 DIVIDEND NEWS T ROWE PRICE ASSOCIATES INC T ROWE PRICE ASSOCIATES INC BALTIMORE SAID SHAREHOLDERS APPROVED AN INCREASE IN AUTHORIZED COMMON SHARES TO 48 MILLION FROM 25 MILLION AND A 2FOR1 STOCK SPLIT TO BE ISSUED NOV 30 TO SHARES OF RECORD YESTERDAY THE COMPANY IS AN INVESTMENT ADVISER TO A FAMILY OF MUTUAL FUNDS AND TO INSTITUTIONS AND INDIVIDUALS 9311110006 931111 BLOOD AND IRONY DID PRICE CONTROLS SPREAD AIDS BY NICOLA CLARK LAST WEEK'S REPORTS OF A GERMAN BLOODPRODUCTS COMPANY CHARGED WITH DISTRIBUTING AIDSINFECTED BLOOD TO NUMEROUS HOSPITALS THROUGHOUT EUROPE HAVE WHIPPED UP A NEW HEALTHCARE HYSTERIA THERE HORROR SCENARIOS PROJECTING BETWEEN TWO MILLION AND 15 MILLION POTENTIAL VICTIMS HAVE LEFT LOCAL HEALTHMINISTRY PHONE LINES JAMMED WITH PANICKED INQUIRIES AND HAVE SENT THOUSANDS OF GERMANS RUSHING TO CLINICS TO HAVE THEMSELVES TESTED FOR THE VIRUS BUT WHILE COVERAGE OF THE UB PLASMA SCANDAL HAS SO FAR TAKEN EITHER THE NEGLIGENTGOVERNMENTREGULATORS OR THE ANOTHERGREEDYPHARMACEUTICALCOMPANY SPIN ONE PRIMARY CULPRIT IN THIS DISASTER HAS BEEN OVERLOOKED GERMANY'S PRICE CONTROLS ON HEALTH CARE THIS TRAGEDY COMES JUST AS THE WHITE HOUSE IS TRYING TO SELL THE AMERICAN PUBLIC ON ITS OWN PLAN FOR HEALTH CARE REFORM THAT ALSO INCLUDES PRICE CONTROLS AS ONE OF ITS CENTRAL COMPONENTS WHILE FIRST LADY HILLARY RODHAM CLINTON AND HER GURU IRA MAGAZINER INSIST THEIR PLAN WILL BRING US ALL HEALTHCARE SECURITY IT IS WORTH ASKING JUST HOW SECURE GERMANS FEEL THESE DAYS WITH THE KINDS OF SACRIFICES IN QUALITY THAT ULTIMATELY FOLLOW FROM GOVERNMENT PRICE REGULATION ALTHOUGH THE INVESTIGATION INTO EXACTLY WHAT HAPPENED AT THE KOBLENZBASED COMPANY IS STILL IN THE EARLY STAGES EXPERTS QUOTED IN THE PRESS ARE BEGINNING TO SPECULATE THAT UB PLASMA ELECTED TO FORGO SCREENING MANY OF ITS BLOOD PRODUCTS FOR AIDS AS A COSTSAVING MEASURE PROSECUTORS CLAIM TO HAVE FOUND 7000 LITERS OF BLOOD READY FOR SHIPMENT OF WHICH ONLY 2500 HAD BEEN SCREENED FOR AIDS IT SEEMS PHARMACEUTICAL COMPANIES CAN SELL A LITER OF BLOOD FOR AS MUCH AS 1800 BY ONLY SPOT TESTING THE BLOOD IT HAS BEEN REPORTED THAT THEY CAN SHAVE THEIR COSTS BY ABOUT 20 HENCE THE CHARGE THAT UB PLASMA WAS MOTIVATED BY GREED PROFITS SHOULD NOT BE ALLOWED TO BE MADE IN THE BLOOD BUSINESS THE HEAD OF THE BERLIN DOCTOR'S ASSOCIATION TOLD ONE NEWSPAPER THE TEMPTATION TO CHEAT IS TOO GREAT UB PLASMA IS ACCUSED OF SUCCUMBING TO THIS TEMPTATION IT SEEMS THE MYTH THAT RISING HEALTH COSTS ARE DRIVEN BY PROFITSEEKING COMPANIES AND NOT SAY BY PERVERSE INCENTIVES FOR OVERUSE OF SERVICES IS JUST AS PERVASIVE ACROSS THE ATLANTIC AS IT IS IN THE CLINTON WHITE HOUSE UB PLASMA MAY WELL BE GUILTY OF CRIMINAL NEGLIGENCE THAT IS A MATTER FOR THE GERMAN AUTHORITIES HOWEVER THE ROLE IN THIS CRISIS OF THE GERMAN GOVERNMENT'S DRACONIAN HEALTH REFORM LAW DRAFTED BY HEALTH MINISTER HORST SEEHOFER IN 1992 AND IMPLEMENTED THIS YEAR SHOULD NOT BE SHRUGGED OFF CASUALLY THE LAW WHICH EVOLVED AS A RESPONSE TO THE FISCAL THREAT POSED BY THE SPIRALING COSTS OF GERMANY'S LAVISH NATIONAL HEALTH INSURANCE SCHEME IMPOSED STRICT BUDGET CEILINGS READ PRICE CONTROLS FOR PHARMACEUTICALS AND FOR A LIST OF MEDICAL PROCEDURES A MAXIMUM OF 15 BILLION WAS ALLOCATED TO HEALTH CARE PROVIDERS THIS YEAR FOR ALL OF GERMANY'S DRUG REIMBURSEMENTS THIS CATEGORY ALSO INCLUDES MEDICAL DEVICES AND PRODUCTS SUCH AS BLOOD ANY EXPENSES THAT EXCEED THIS CAP ARE EXPECTED TO BE CARRIED BY DOCTORS AND HOSPITALS LAST YEAR THE HEALTH MINISTER PISHAWED THE GERMAN MEDICAL COMMUNITY'S OUTCRY THAT SUCH MEASURES WOULD HAVE SERIOUS CONSEQUENCES FOR THE QUALITY OF GERMAN HEALTH CARE MR SEEHOFER'S REFORMS AIMED TO FIND 68 BILLION IN SAVINGS FROM THE HEALTH INSURANCE SYSTEM THIS YEARAND MORE THAN 25 OF THOSE SAVINGS ARE BEING EXTRACTED FROM THE DRUG INDUSTRY THROUGH CAPS ON GOVERNMENT REIMBURSEMENTS AS WELL AS THROUGH ACROSSTHEBOARD PRICE CUTS FOR PRESCRIBED MEDICINES THIS DESPITE THE FACT THAT JUST 154 OF ALL GERMAN HEALTH SPENDING IS ON PHARMACEUTICALS AND RELATED PRODUCTS AND DEVICES THE CHAIRMAN OF GERMANY'S PHARMACEUTICAL INDUSTRY ASSOCIATION BPI HUBERTUS VON LOEPER DESCRIBED THE PLAN IN OCTOBER 1992 AS A CON JOB THAT PLACED 60 OF BPI'S 480 MEMBER COMPANIES IN ACUTE DANGER OF NOT BEING ABLE TO RECOUP THEIR OPERATING COSTS UB PLASMA IS NOT A MEMBER OF THE ASSOCIATION BUT IT MIGHT WELL HAVE BEEN AMONG THOSE SUPPLIERS WHOSE SURVIVAL WAS THREATENED BY MR SEEHOFER'S PRICING SCHEME AND THAT WERE COMPELLED TO SEARCH FOR WAYS TO CUT COSTS WHILE THE COMPANY IS ACCUSED OF VIOLATING A 1985 LAW REQUIRING ALL BLOOD PRODUCTS TO BE TESTED FOR AIDS IT IS NOT YET CLEAR WHEN THE ALLEGED NONCOMPLIANCE BEGAN LAST YEAR MR SEEHOFER'S MINISTRY REPORTED THAT SPENDING AT GERMAN INSURANCE POOLS HAD INCREASED 92 IN 12 MONTHS LEAVING THE SYSTEM A DEFICIT OF 56 BILLION BUT IN SEPTEMBER THANKS IN LARGE PART TO THE DRUGPRICE FIXING SCHEME MR SEEHOFER ANNOUNCED WITH GREAT FANFARE THAT THIS DEFICIT HAD ALREADY BEEN TRANSFORMED INTO A 16 BILLION SURPLUS IN THE FIRST SIX MONTHS OF 1993 THE GOVERNMENT WAS STILL CONGRATULATING ITSELF FOR HAVING SOLVED THE PROBLEM SO SIMPLY WHEN STORIES OF THE TAINTEDBLOOD SCANDAL SURFACED THIS BLOOD SCANDAL IS A CATASTROPHE FOR OUR MEDICAL SYSTEM A BERLIN MAN TOLD NATIONAL PUBLIC RADIO WROTE THE DAILY MUNICH ABENDZEITUNG THE STATISTICS SAY NOTHING ABOUT THE LOSS OF TRUST A HOSPITAL USED TO BE A PLACE FREE OF BODILY HARM THAT NO LONGER HOLDS THE DUSSELDORFBASED WESTDEUTSCHE ZEITUNG PROCLAIMED THAT THE MINSTER OF HEALTH MUST NOW WIN BACK THE TRUST OF THE CITIZENS IN THE AGENCY AND THE HEALTH SYSTEM IN GENERAL TRUST US APPEARS TO BE THE UNOFFICIAL SLOGAN OF THE CLINTON TEAM AS IT PEDDLES ITS PLAN FOR HEALTH CARE PRICE REGULATION ACROSS THIS COUNTRY THE GERMANS ARE NOW LEARNING JUST HOW COSTLY BLIND FAITH CAN BE MS CLARK RECENTLY RETURNED FROM AN ARTHUR F BURNS FELLOWSHIP IN GERMANY WORKS FOR APDOW JONES NEWS SERVICE IN NEW YORK 9311110005 931111 BUSINESS BRIEF MONSANTO PLANS SALE OF 2 CHEMICAL LINES IN HUNTSMAN ACCORD ST LOUIS MONSANTO CO AGREED TO SELL TWO CHEMICAL LINES WITH COMBINED ANNUAL REVENUE OF ABOUT 200 MILLION TO ONE OF THE COMPANIES CONTROLLED BY INDUSTRY INVESTOR JON HUNTSMAN THE AGREEMENT IN PRINCIPLE WITH HUNTSMAN FINANCIAL CORP MARKS THE LATEST OF CHEMICALINDUSTRY ASSET PURCHASES BY THE SALT LAKE CITY BILLIONAIRE WHO IS BETTING THAT ASSETS ACQUIRED DURING THE CYCLICAL INDUSTRY'S CURRENT WEAKNESS WILL PAY OFF WHEN CONDITIONS IMPROVE TERMS WEREN'T DISCLOSED A MONSANTO SPOKESMAN SAID THE COMPANY EXPECTS TO RECORD A LOSS ON THE SALE BUT THE SIZE OF THE LOSS WON'T BE KNOWN UNTIL THE AGREEMENT IS FINAL THE COMPANY ESTABLISHED A RESERVE AGAINST SUCH A LOSS IN A PREVIOUS PERIOD HE SAID SO THE SALE WON'T REQUIRE ANY CHARGE THE TRANSACTION IS EXPECTED TO CLOSE BY YEAR'S END MR HUNTSMAN WHO WITH A JOINTVENTURE PARTNER AGREED IN SEPTEMBER TO PAY 106 BILLION FOR TEXACO INC'S PETROCHEMICAL BUSINESSES SAID THE MONSANTO LINES WILL ALLOW OUR CHEMICAL GROUP TO DIVERSIFY INTO TWO EXCELLENT PRODUCTS IT CURRENTLY DOESN'T MANUFACTURE HUNTSMAN CHEMICAL CO IS ACQUIRING MONSANTO'S LINEAR ALKYL BENZENE SURFACTANT BUSINESS WHICH THE ST LOUIS COMPANY MAKES IN ALVIN TEXAS THE PRODUCT IS USED WIDELY IN DETERGENTS AND HOUSEHOLD CLEANERS THE PROPOSED TRANSACTION ALSO COVERS MONSANTO'S MALEIC ANHYDRIDE LINE THE COMPANY MAKES THAT PRODUCT USED IN DIVERSE APPLICATIONS IN PENSACOLA FLA AND ST LOUIS THE PACT CALLS FOR HUNTSMAN TO ACQUIRE THE ASSETS AND TECHNOLOGY WITH MONSANTO CONTINUING TO OPERATE THE FACILITIES ON HUNTSMAN'S BEHALF MONSANTO SAID THE LINES AREN'T STRATEGIC PRIORITY AREAS FOR THE COMPANY MONSANTO CO EXPECTS TO RECORD A SMALL GAIN FROM A PLANNED SALE OF TWO CHEMICAL LINES AN ARTICLE YESTERDAY INCORRECTLY REPORTED THAT THE SALE WOULD RESULT IN A LOSS FOR WHICH A RESERVE HAD PREVIOUSLY BEEN MADE 9311110004 931111 LAW LEGAL BEAT LIFE FOR THREETIME LOSERS HELPS PROSECUTORS IF NOT THE CRIME RATE BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL PROPOSALS TO LOCK UP HABITUAL FELONS FOR LIFE WON'T WORK ANY CRIMEBUSTING MIRACLES SPECIALISTS IN CRIMINAL LAW SAY BUT THEY MAY PROVE TO BE USEFUL TOOLS FOR PROSECUTORS NONETHELESS THE PROPOSALS WOULD ALLOW PROSECUTORS TO SEEK LIFE TERMS FOR PEOPLE CONVICTED THREE SEPARATE TIMES OF CERTAIN SERIOUS CRIMES SUPPORTERS OF THE THREETIME LOSER LAWS HAVE WON TWO MAJOR VICTORIES THIS MONTH THE US SENATE APPROVED THE PROVISION AS AN AMENDMENT TO THE FEDERAL CRIME BILL AND VOTERS IN WASHINGTON STATE OVERWHELMINGLY ADOPTED SUCH A LAW IN A REFERENDUM THOSE WINS ARE LIKELY TO ENERGIZE SIMILAR EFFORTS UNDER WAY IN SEVERAL OTHER STATES INCLUDING CALIFORNIA AND VIRGINIA PROPONENTS PROMISE THE LAWS WILL LOWER CRIME RATES CITING A UNIVERSITY OF PENNSYLVANIA STUDY SHOWING THAT 80 OF ALL MEN WHO HAVE COMMITTED THREE VIOLENT CRIMES WILL GO ON TO COMMIT A FOURTH OPPONENTS COUNTER THAT THE LAWS DO LITTLE MORE THAN CROWD PRISONS WITH NONVIOLENT CRIMINALS WHO AREN'T REALLY A THREAT TO SOCIETY IN FACT CRIMINOLOGISTS SAY THE EVIDENCE THUS FAR INDICATES THAT THE LAWS AREN'T LIKELY TO MAKE A MAJOR DENT IN CRIME RATES IN THE DOZEN OR MORE STATES THAT ALREADY HAVE HABITUALCRIMINAL LAWS INCLUDING FLORIDA MARYLAND AND ILLINOIS CRIME RATES HAVE GENERALLY ESCALATED AT RATES SIMILAR TO THOSE IN THE REST OF THE COUNTRY THIS SUGGESTS AT THE VERY LEAST THAT THE THREAT OF LONGER SENTENCES ISN'T HAVING MUCH OF A DETERRENT EFFECT CRIME SPECIALISTS SAY THE DETERRENT VALUE OF THE CRIMINAL LAW HAS ALWAYS BEEN GROSSLY EXAGGERATED SAYS PETER ARENELLA A LAW PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES NONETHELESS POLICE AND PROSECUTORS SAY THE LAWS SERVE AS SPECIFIC DETERRENTS MEANING THAT THEY STOP INDIVIDUALS TARGETED BY THE LAW FROM COMMITTING FURTHER CRIMES BY GETTING THEM OFF THE STREETS AND THEY SAY THAT SOME STATES' PROSECUTORS HAVEN'T USED THEIR DISCRETION TO APPLY THE LAWS AS BROADLY AS THEY COULD IF APPLIED MORE BROADLY THEY SUGGEST THE LAWS SHOULD PUSH CRIME DOWN DEMONSTRABLY WE'RE CONFIDENT THAT WE'RE HAVING AN IMPACT OR WE WOULDN'T SPEND THE TIME OR RESOURCES TO DO IT SAYS DAVID KEITH A CRIME ANALYST FOR THE POLICE DEPARTMENT OF OXNARD CALIF WHICH STARTED A PILOT PROJECT IN 1983 TARGETING HABITUAL JUVENILE CRIMINALS FLORIDA ENACTED ITS TOUGH NEW LAW ON HABITUAL CRIMINALS ABOUT SIX YEARS AGO SINCE THEN THE STATE'S OVERALL CRIME RATE HAS REMAINED STEADY AND THE RATE OF VIOLENT CRIME HAS INCREASED 16 ACCORDING TO A REPORT LAST MAY BY THE NATIONAL COUNCIL ON CRIME AND DELINQUENCY A CRIMINALJUSTICE THINKTANK BUT FLORIDA OFFICIALS SAY THE LAW HAS PREVENTED PROSECUTORS FROM HAVING TO RETRY THE SAME CRIMINALS AND THEY SAY IT HAS DETERRED SOME CRIMES BECAUSE HABITUAL OFFENDERS HAVE TO SERVE ALMOST ALL OF THEIR SENTENCES UNLIKE CONVICTS ELIGIBLE FOR EARLY RELEASE HABITUAL CRIMINALS IN FLORIDA TYPICALLY SERVE 70 TO 80 OF THEIR TERM COMPARED WITH ABOUT 19 FOR OTHER CRIMINALS ACCORDING TO ARTHUR JACOBS GENERAL COUNSEL OF THE STATE PROSECUTORS' ASSOCIATION THE STATE ATTORNEYS BELIEVE THE HABITUAL OFFENDER LAW IS THE MOST EFFECTIVE TOOL THEY HAVE TO FIGHT CRIME HE SAYS CRITICS OF SUCH LAWS CONTEND THAT WHETHER EFFECTIVE OR NOT THEY ARE UNFAIR AND DISCRIMINATORY BECAUSE OF THE HIGH DEGREE OF DISCRETION THEY GIVE PROSECUTORS THE REPORT BY THE NATIONAL COUNCIL ON CRIME AND DELINQUENCY FOUND THAT 22 OF BLACKS WHO MET THE LAW'S CRITERIA WERE SENTENCED AS HABITUAL CRIMINALS AS COMPARED WITH 12 OF WHITES THE REPORT ALSO NOTED THAT ONLY ABOUT 20 OF CRIMINALS WHO MET THE CRITERIA WERE TREATED AS HABITUAL OFFENDERS IT'S A FLIP OF THE COIN BY THE PROSECUTOR SAYS JAMES AUSTIN AUTHOR OF THE REPORT JUDGES DISPLAYING SOME OF THE SAME FRUSTRATION WITH CRIME AS THE PUBLIC HAVE SHOWN LITTLE INCLINATION TO ADDRESS SUCH CONCERNS BY INTERPRETING THREETIME LOSER LAWS FLEXIBLY IN FLORIDA FOR EXAMPLE COURTS RARELY EXERCISE THEIR POWER TO CHALLENGE A PROSECUTOR'S USE OF THE LAW IN A PARTICULAR CASE SIMILARLY IN JUNE THE SEVENTH US CIRCUIT COURT OF APPEALS IN CHICAGO ISSUED AN UNUSUALLY ACERBIC OPINION STRICTLY ENFORCING PROVISIONS OF A 1986 FEDERAL CAREERCRIMINAL LAW THE CHICAGO RULING CAME IN THE CASE OF ROBERT WHITE WHO HAD BEEN CONVICTED OF FOUR PREVIOUS CRIMES KEEPING HIM IN AND OUT OF PRISON BETWEEN 1967 AND 1990 UNDER THE CAREERCRIMINAL STATUTE MR WHITE WAS SENTENCED TO 16 YEARS IN PRISON THE JUDGMENT THAT MR WHITE HAS MADE A CAREER OF CRIME IS A VERY REASONABLE CONCLUSION A SECOND CAREER WOULD HAVE BEEN HARD TO SQUEEZE IN WHAT WITH SERVING TIME AND ALL JUDGE WILLIAM BAUER WROTE THE CAREERCRIMINAL LAW WAS ENACTED SPECIFICALLY TO PROTECT THE PUBLIC FROM THE REPEATED EPISODES OF VIOLENCE THAT PEOPLE LIKE WHITE INFLICT AGAINST AMERICAN SOCIETY THE JUDGE SAID THE CRIMEBILL AMENDMENT PASSED BY THE SENATE THIS WEEK WOULD REQUIRE VIOLENT CAREER CRIMINALS TO SERVE MANDATORY LIFE SENTENCES RATHER THAN SIMPLY THE LENGTHY SENTENCES REQUIRED BY EXISTING LAW A FORMER SENIOR TRADER FOR THE NEW YORK BRANCH OF ABN AMRO BANK NV WAS FOUND GUILTY BY A JURY OF FRAUDULENTLY INFLATING THE VALUE OF THE BANK'S FOREIGNEXCHANGE PORTFOLIO BY 70 MILLION FOLLOWING A THREEWEEK TRIAL THE JURY IN FEDERAL COURT IN NEW YORK FOUND JAMES MARTIGNONI 29 YEARS OLD GUILTY OF 16 COUNTS OF FRAUD MAKING FALSE BOOK ENTRIES AND CONSPIRACY FEDERAL PROSECUTORS HAD CONTENDED THAT MR MARTIGNONI THE FORMER CHIEF FOREIGNEXCHANGE OPTIONS TRADER AT ABN AMRO A NETHERLANDSBASED BANK HID LOSSES IN THE FOREIGNEXCHANGE ACCOUNT THAT HE RAN BY INFLATING VOLATILITIES ON A NUMBER OF OPTIONS VOLATILITY OR THE PRICE FLUCTUATION IN THE UNDERLYING CURRENCY IS ONE OF THE FACTORS THAT DETERMINES THE VALUE OF AN OPTION HIGHER VOLATILITY MEANS THE OPTION IS MORE LIKELY TO PAY OFF AND THAT MAKES THE OPTION MORE VALUABLE KRISTEN BURCH MR MARTIGNONI'S FORMER TRADING ASSISTANT WHO PLEADED GUILTY IN NOVEMBER 1992 AND TESTIFIED ON BEHALF OF THE GOVERNMENT AT TRIAL IS SCHEDULED TO BE SENTENCED DEC 3 MR MARTIGNONI IS SCHEDULED TO BE SENTENCED FEB 7 DEFENSE ATTORNEY WILLIAM M KUNSTLER MAY REPRESENT SHEIK OMAR ABDEL RAHMAN THE MUSLIM CLERIC CHARGED WITH CONSPIRACY IN AN ALLEGED TERRORIST BOMBING PLOT OR TWO OTHER DEFENDANTS IN THE CASE BUT NOT ALL THREE MEN A FEDERAL JUDGE RULED JUDGE MICHAEL B MUKASEY REJECTED AN ATTEMPT BY MR KUNSTLER AND LAW PARTNER RONALD L KUBY TO REPRESENT THE SHEIK IN ADDITION TO THE TWO OTHER DEFENDANTS THEY CURRENTLY REPRESENT SIDDIG IBRAHIM SIDDIG ALI AND IBRAHIM A ELGABROWNY IN HIS OPINION JUDGE MUKASEY SAID THAT HE HAD SERIOUS DOUBTS THAT THE SHEIK UNDERSTOOD THE HAZARDS OF JOINT REPRESENTATION THE JUDGE ADDED THAT HIS VIEW WAS ENHANCED BY THE KUNSTLER FIRM'S BLANKET DENIAL OF ALL CONFLICTS OF INTEREST MR KUBY SAID HE WILL PETITION THE SECOND US CIRCUIT COURT OF APPEALS TO REVIEW THE DECISION IT IS A BEDROCK CONSTITUTIONAL PRINCIPLE THAT A DEFENDANT IS ENTITLED TO COUNSEL OF HIS OR HER CHOOSING THEY'VE CHOSEN US HE SAID JUDGE MUKASEY GAVE THE FIRM UNTIL NOV 15 TO DETERMINE WHOM IT WILL CONTINUE TO REPRESENT WE WILL NOT DECIDE OUR CLIENTS WILL DECIDE SAID MR KUBY THE CASE AGAINST THE SHEIK AND THE 14 OTHER ALLEGED COCONSPIRATORS IS EXPECTED TO GO TO TRIAL NEXT YEAR IT'S SEPARATE BUT RELATED TO THE CURRENT TRIAL OF FOUR DEFENDANTS CHARGED IN CONNECTION WITH THE FEBRUARY BOMBING OF THE WORLD TRADE CENTER MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE 9311110003 931111 THREE TV STATIONS JOIN PARAMOUNT IN NETWORK BID IN THE RACE TO GET A FIFTH BROADCAST NETWORK ON THE AIR PARAMOUNT COMMUNICATIONS INC SAID IT HAD LINED UP THREE MORE STATIONS WIDENING ITS REACH TO 33 OF US HOUSEHOLDS PARAMOUNT COMMUNICATIONS INC AND PARTNER CHRISCRAFT INDUSTRIES INC SIGNED WPWRTV IN CHICAGO WUABTV IN CLEVELAND AND WXMTTV IN NASHVILLE TENN AS AFFILIATES BRINGING ITS TOTAL NUMBER OF AFFILIATES TO 13 INCLUDING STATIONS OWNED BY PARAMOUNT AND CHRISCRAFT THE TWO COMPANIES PLAN TO LAUNCH THE PARAMOUNT NETWORK BY JANUARY 1995 PARAMOUNT'S CHIEF RIVALS IN THE BID FOR A FIFTH NETWORK TIME WARNER INC'S WARNER BROS ALLIED WITH TRIBUNE CO ANNOUNCED PLANS LAST WEEK TO LAUNCH WB NETWORK WHICH WILL BEGIN BROADCASTS NEXT FALL THAT VENTURE SAYS IT ALREADY HAS 40 OF THE US TV HOUSEHOLDS COVERED THE CENTRAL CHALLENGE FOR BOTH NETWORKS WILL BE TO LINE UP STATIONS OR CABLE SYSTEMS REACHING 70 TO 80 OF THE 942 MILLION US TV HOUSEHOLDS CONSIDERED THE THRESHOLD NEEDED TO LURE NATIONAL ADVERTISERS WITH THE NEW AFFILIATES PARAMOUNT AND CHRISCRAFT WILL HAVE EIGHT OF THE TOP 10 MARKETS SIGNED THE COMPANY ANTICIPATES IT WILL HAVE 85 COVERAGE IN JANUARY 1995 WHEN THE NETWORK LAUNCHES 9311110001 931111 BUSINESS BRIEF SEC PROBING WHETHER KENDALL SQUARE REPORTS VIOLATED US SECURITIES LAWS SECURITIES AND EXCHANGE COMMISSION INVESTIGATORS ARE PROBING WHETHER KENDALL SQUARE RESEARCH CORP MAY HAVE VIOLATED FEDERAL SECURITIES LAWS BY ISSUING FALSE OR MISLEADING REPORTS ACCORDING TO INDIVIDUALS WITH KNOWLEDGE OF THE INVESTIGATION THE SEC IS LOOKING AT WHETHER KENDALL SQUARE HAD BEEN BOOKING REVENUE PREMATURELY IN AN EFFORT TO BOOST FINANCIAL RESULTS AND THE COMPANY'S STOCK PRICE IN WALTHAM MASS CHARLES CASALE KENDALL SQUARE VICE PRESIDENT INVESTOR AND MEDIA RELATIONS SAID WE HAVE RECEIVED NO FORMAL ORDER FROM THE SEC BUT WE HAVE BEEN REQUESTED TO PROVIDE CERTAIN DOCUMENTS AND WE ARE PROVIDING THEM FORMAL ORDERS ARE USUALLY SOUGHT WHEN THERE IS SUFFICIENT PRELIMINARY EVIDENCE TO INDICATE A PROBLEM OR WHEN COMPANIES DECLINE TO COOPERATE WITH SEC REQUESTS KENDALL SQUARE MAKES PARALLELPROCESSING SUPERCOMPUTERS EARLIER THIS WEEK IT ANNOUNCED THAT IT IS RECONSIDERING ITS ACCOUNTING TREATMENT OF CERTAIN SHIPMENTS RECOGNIZED AS REVENUE DURING THE FIRST HALF OF THE YEAR AND WOULD REPORT THIRDQUARTER RESULTS BY NOV30 THE COMPANY COUNTED SHIPPED COMPUTERS AS REVENUEPRODUCING AS SOON AS THEY WERE ACCEPTED BY CUSTOMERS EVEN THOUGH PAYMENTS MIGHT NOT COME FOR MONTHS LATE LAST MONTH THE COMPANY SAID ITS THIRDQUARTER REVENUE WOULD BE SUBSTANTIALLY BELOW EXPECTATIONS AND IT WOULD INCUR A LOSS FOR THE QUARTER THAT WAS A SHARP TURNABOUT FROM EARLY AUGUST WHEN HENRY BURKHARDT PRESIDENT CHIEF EXECUTIVE OFFICER AND A FOUNDER OF THE COMPANY PUBLICLY ENDORSED WALL STREET ESTIMATES OF A STRONG THIRDQUARTER ANALYSTS HAD PREDICTED KENDALL SQUARE WOULD EARN BETWEEN NINE CENTS AND 13 CENTS A SHARE IN 1993'S THIRD QUARTER COMPARED WITH A LOSS OF 33 MILLION OR 29 CENTS A SHARE A YEAR EARLIER TWO WEEKS AFTER HIS BULLISH EARNINGS FORECAST MR BURKHARDT SOLD KENDALL SHARES VALUED AT 1 MILLION SEC INVESTIGATORS ARE LOOKING INTO WHETHER THIS SALE VIOLATED SECURITIES LAWS IF AN EXECUTIVE PUSHED UP A COMPANY'S STOCK PRICE WITH THE KNOWLEDGE THAT WHAT HE WAS SAYING WAS FALSE AND THAT HE INTENDED TO SELL SHARES THAT WOULD CONSTITUTE SECURITIES FRAUD ALL THE BAD NEWS HAS SHARPLY DEFLATED KENDALL SQUARE'S STOCK PRICE LESS THAN TWO WEEKS AGO BEFORE IT ANNOUNCED IT WOULD POST AN UNPROFITABLE THIRDQUARTER KENDALL SQUARE SHARES TRADED AT 2450 YESTERDAY THE COMPANY'S STOCK CLOSED AT 1225 UP 50 CENTS IN NASDAQ STOCK MARKET TRADING KENDALL SQUARE WAS THE SUBJECT OF A HEARD ON THE STREET COLUMN IN THIS NEWSPAPER IN EARLY OCTOBER THE COLUMN QUOTED ANALYSTS WHO CRITICIZED THE COMPANY FOR AGGRESSIVE SALESRECOGNITION POLICIES AND FOR CARRYING A HIGH LEVEL OF RECEIVABLES 9311110159 931019 MARKETING & MEDIA WHITTLE TV NEWS POORER DISTRICTS LINKED IN STUDY BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL VIEWERSHIP OF WHITTLE COMMUNICATIONS LP'S CLASSROOM TELEVISION PROGRAM IS SKEWED TOWARD STUDENTS BELOW THE POVERTY LINE SAYS A STUDY ISSUED BY A NEW GROUP THAT WANTS THE SHOW REMOVED FROM SCHOOLS THE STUDY ALSO FOUND THAT POORLY FUNDED SCHOOLS WERE FAR MORE LIKELY THAN WELLFUNDED ONES TO SHOW CHANNEL ONE WHITTLE'S 12MINUTE SCHOOL NEWS SHOW THE FINDINGS SEEM TO SUPPORT CRITICS' CONTENTION THAT EDUCATORS ACCEPT CHANNEL ONE WHICH CARRIES COMMERCIALS FOR THE TELEVISION EQUIPMENT THAT WHITTLE FURNISHES THEM RATHER THAN FOR EDUCATIONAL ENHANCEMENT WHITTLE OF KNOXVILLE TENN QUESTIONED THE DATA IN THE STUDY AND SAID IT HAD NO INDICATION THAT CHANNEL ONE VIEWERSHIP WAS WEIGHTED TOWARD ANY INCOME GROUP SET AGAINST A BACKDROP OF CONTINUAL COMPLAINTS OVER CHANNEL ONE FROM SOME EDUCATORS AND OTHERS OVER THE LAST TWO YEARS THE STUDY'S CONCLUSIONS WERE SOMEWHAT PREDICTABLE BUT THE STATISTICS IN THE STUDY PROVIDED THE FIRST GLIMPSE OF CHANNEL ONE'S DEMOGRAPHICS FROM A SOURCE OTHER THAN WHITTLE WHOSE PIONEERING USE OF ALTERNATE ADVERTISING MEDIA HAS MADE SUCH DATA HARD TO COME BY USING SCHOOL SURVEYS CONDUCTED BY DUN & BRADSTREET FOR ITS OWN MARKETING PROFILES PROFESSOR MICHAEL MORGAN OF THE UNIVERSITY OF MASSACHUSETTS FOUND THAT CHANNEL ONE REACHES 38 OF SCHOOLS WITH OVER 25 OF THEIR STUDENTS IN POVERTY BUT ONLY 17 OF SCHOOLS WITH A POVERTY LEVEL BELOW 5 SIX IN 10 SCHOOLS THAT SPEND LESS THAN 2600 PER STUDENT EACH YEAR CARRY CHANNEL ONE PROF MORGAN SAID WHILE ONLY ONE SCHOOL IN 10 THAT SPENDS MORE THAN 6000 PER YEAR CARRIES THE PROGRAM THE STUDY ALSO FOUND A SLIGHTLY HIGHER TENDENCY TOWARD THE PROGRAM BY SCHOOLS WITH LARGER BLACKSTUDENT POPULATIONS THE STUDY WAS CONDUCTED BY PROF MORGAN FOR UNPLUG A NEW NONPROFIT GROUP ADVOCATING COMMERCIAL FREE EDUCATION PROF MORGAN SAID THAT THE FINDINGS INDICATE THAT SCHOOLS IN HIGHPOVERTY AREAS ARE DESPERATE FOR TV EQUIPMENT WHICH WHITTLE SUPPLIES FOR FREE WHILE SCHOOLS USE IT TO SHOW CHANNEL ONE ALTHOUGH THESE STUDENTS ARE MOST IN NEED OF MORE SPENDING ON INSTRUCTIONAL RESOURCES HE ADDED THEY ARE SPENDING THE MOST TIME IN THE CLASSROOM WATCHING COMMERCIALS JIM RITTS WHITTLE'S PRESIDENT FOR EDUCATIONALNETWORK AFFAIRS SAID THAT THE COMPANY KEEPS NO DATA ON THE INCOME LEVELS OF CHANNEL ONE'S VIEWERS BUT HE SAID WHITTLE DATA SHOW THAT VIEWERSHIP CLOSELY MIRRORS THE MINORITY PROPORTIONS IN THE POPULATION CAUSING HIM TO QUESTION THE STUDY'S OVERALL VALIDITY MR RITTS SAID ANOTHER INCONSISTENCY WAS THE STUDY'S FINDING THAT CHANNEL ONE PENETRATED 26 OF SECONDARY SCHOOLS AS AGAINST THE 40 WHITTLE SAYS IT HAS EVEN IF POOR STUDENTS WERE MORE LIKELY VIEWERS MR RITTS SAID CHANNEL ONE EVENS THE PLAYING FIELD BY SUPPLYING THEM WITH MORE NEWS FOR ANY GROUP OR INDIVIDUAL TO SAY THESE SCHOOLS SHOULD NOT HAVE CHANNEL ONE IS A CLASSIC CASE OF CULTURAL ELITISM HE ADDED SEE RELATED LETTER LETTERS TO THE EDITOR KIDS COAXED TO SPEND MONEY THEY DON'T HAVE WSJ NOV 11 1993 9310190081 YY93 MM11 9311110157 931013 LETTERS TO THE EDITOR MALPRACTICE DAMAGE CAPS WON'T HELP DAVID MCINTOSH'S SEPT 22 RULE OF LAW COLUMN WITHOUT MALPRACTICE REFORM FORGET HEALTHCARE REFORM TOUTED INDIANA AS THE MODEL FOR MEDICAL MALPRACTICE LAWS IN PARTICULAR INDIANA'S CAP ON DAMAGES WAS HELD OUT AS THE SUREFIRE WAY TO HARNESS ESCALATING HEALTH CARE COSTS NOTHING COULD BE FURTHER FROM THE TRUTH IN 1989 I SUFFERED AN INJURY AS A RESULT OF A MEDICAL PROCEDURE THAT HAS LEFT ME DISABLED AND IN A WHEELCHAIR WITH CONTINUAL MEDICAL EXPENSES AND UNABLE TO WORK IN 1975 I WAS ONE OF THE LOBBYISTS FOR THE INSURANCE INDUSTRY WHO FOUGHT TO ENACT INDIANA'S LAW AND CAP WE USED ARGUMENTS TO PLAY ON FEARS THAT ARE NOW BEING USED TO FORCE TAXPAYERS TO PICK UP THE TAB FOR WHAT OTHERS HAVE DONE WRONG WE ARGUED THAT CAPS WOULD LOWER HEALTH CARE COSTS WOULD KEEP MALPRACTICE PREMIUMS LOW AND WOULD ENCOURAGE PHYSICIANS TO STAY IN INDIANA TO PROVIDE HEALTH CARE TO OUR CITIZENS WE WERE WRONG THEN AND THOSE SAME ARGUMENTS ARE WRONG NOW BETWEEN 1980 AND 1990 HEALTH CARE COSTS IN INDIANA INCREASED 1394 ACCORDING TO THE FAMILIES USA FOUNDATION A PUBLIC INTEREST GROUP THIS INCREASE INDEED IS APPALLING BUT INDIANA'S RISE IN SPENDING IS EVEN HIGHER THAN THE NATIONAL AVERAGE OF 1387 IF INDIANA'S DAMAGE CAPS HAVE WORKED WONDERS AS THE COLUMN STATES THEN WHY HAVE HEALTH CARE COSTS IN INDIANA OUTPACED THE NATIONAL AVERAGE THE SIMPLE TRUTH IS THAT THE DAMAGE CAPS ENACTED IN INDIANA HAVE NOT CONTROLLED HEALTH CARE SPENDING BECAUSE THE TWO ISSUES ARE NOT RELATED A CONGRESSIONAL BUDGET OFFICE REPORT LAST YEAR ILLUSTRATES THIS BY SHOWING THAT MEDICAL MALPRACTICE LITIGATION REPRESENTS LESS THAN 1 OF TOTAL HEALTH CARE SPENDING IN THE US THERE IS NO REASON TO BELIEVE THAT MALPRACTICE LITIGATION ACCOUNTS FOR A HIGHER PERCENTAGE OF INDIANA'S HEALTH CARE COSTS THAN THE NATIONAL STUDY REVEALED IN 1980 INDIANA RANKED 32ND AMONG THE STATES IN PER CAPITA HEALTH CARE SPENDING ACCORDING TO THE CONSULTING FIRM LEWIN/ICP IN 1990 15 YEARS AFTER INDIANA PASSED ITS MALPRACTICE LAW AFTER THE DAMAGE CAPS HAD AMPLE TIME TO WORK THEIR MAGIC INDIANA WAS STILL 32ND IN PER CAPITA HEALTH CARE SPENDING CLEARLY DAMAGE CAPS HAVE HAD NO EFFECT ON CONTROLLING HEALTH CARE SPENDING IN INDIANA WHILE IT IS TRUE THAT INDIANA'S DOCTORS PAY LESS THAN PHYSICIANS IN OTHER STATES FOR MALPRACTICE INSURANCE THIS IS ONLY HALF THE STORY MALPRACTICE PREMIUMS PAID TO THE INSURANCE COMPANIES ARE ARTIFICIALLY LOW IN INDIANA MALPRACTICE INSURERS ONLY WRITE UP TO 100000 OF COVERAGE NEGLIGENTLY INJURED PATIENTS WHO ARE ENTITLED TO MORE THAN 100000 MUST LOOK TO INDIANA'S STATERUN EXCESS COMPENSATION FUND DEPENDING ON WHEN THE MALPRACTICE OCCURRED THE PATIENT CAN RECEIVE UP TO AN ADDITIONAL 400000 OR UP TO AN ADDITIONAL 650000 FOR COMPENSATION A BRAINDAMAGED BABY WHO CAN REQUIRE MORE THAN 3 MILLION OF LIFETIME HEALTH CARE SERVICES WILL QUICKLY EAT UP THAT AWARD AND BECOME DEPENDENT UPON THE TAXPAYERS FOR SURVIVAL WHERE DOES THE MONEY TO PAY THE POTENTIAL 400000 TO 65000 COME FROM AS IT TURNS OUT IT IS FUNDED BY A SURCHARGE ON YOU GUESSED IT INDIANA DOCTORS CONSEQUENTLY DOCTORS' TRUE MALPRACTICE COSTS ARE NOT ACCURATELY REFLECTED UNTIL DOCTORS' MALPRACTICE INSURANCE PREMIUMS AND SURCHARGES ARE ADDED TOGETHER IT IS NOTEWORTHY THAT THE SURCHARGES HAVE BALLOONED FROM 10 IN 1975 TO 125 IN 1990 DOCTORS HAVE NOT FLOCKED TO INDIANA BECAUSE OF DAMAGE CAPS AND APPARENTLY LOW INSURANCE PREMIUMS ACCORDING TO THE 1991 STATISTICAL ABSTRACT OF THE UNITED STATES INDIANA HAS 45 FEWER PHYSICIANS PER 100000 RESIDENTS THAN THE NATIONAL AVERAGE FURTHER THE INDIANA MEDICAL ASSOCIATION SAYS HALF OF THE GRADUATES OF THE INDIANA UNIVERSITY SCHOOL OF MEDICINE LEAVE THE STATE UPON GRADUATION EVEN IF DAMAGE CAPS DID RESULT IN LOWER MALPRACTICE COSTS FOR DOCTORS THE IDEA THAT THIS WOULD REDUCE COSTS TO THE HEALTH CARE CONSUMER IS NOT TRUE WHEN THE MEDICAL ESTABLISHMENT CUTS ITS COSTS FOR MALPRACTICE INSURANCE WHETHER IN THE FORM OF PRIVATE INSURANCE PREMIUMS OR SURCHARGES IT POCKETS THE DIFFERENCE DAMAGE CAPS WILL NOT REDUCE HEALTH CARE SPENDING IN THE US NOR WILL LOWER MALPRACTICE COSTS FOR DOCTORS RESULT IN LOWER HEALTH CARE COSTS INSTEAD DAMAGE CAPS ARE ONLY AN ATTEMPT BY THE INSURANCE AND MEDICAL ESTABLISHMENTS TO GAIN SPECIAL TREATMENT AT THE EXPENSE OF THE TAXPAYER AND THE SEVERELY INJURED PATIENTS PRESIDENT CLINTON TO HIS CREDIT HAS NOT BEEN CONNED INTO BELIEVING THAT DAMAGES CAPS ARE THE SALVATION OF OUR HEALTH CARE SYSTEM'S AILMENTS SEE RELATED LETTERS LETTERS TO THE EDITOR THE MALPRACTICE DAMAGES DEBATE WSJ NOV 11 1993 9310130185 YY93 MM11 9311100186 931110 INTERNATIONAL CANADA TO OBSERVE HOLIDAY TORONTO BANKS AND MOST GOVERNMENT OFFICES IN CANADA WILL BE CLOSED TOMORROW FOR THE REMEMBRANCE DAY HOLIDAY EXCHANGES AND MOST BUSINESSES WILL BE OPEN MAIL WON'T BE DELIVERED 9311100185 931110 CANADIAN CAPITALSPENDING PLANS OTTAWA MAJOR CANADIAN COMPANIES INTEND TO INCREASE THEIR SPENDING ON PLANT AND EQUIPMENT 77 NEXT YEAR STATISTICS CANADA A GOVERNMENT AGENCY SAID THE AGENCY WHICH SURVEYED 300 OF THE COUNTRY'S LARGEST COMPANIES SAID PRODUCERS OF MACHINERY AND EQUIPMENT PLAN THE BIGGEST RISE IN CAPITAL SPENDING A 244 INCREASE FROM 1993 STATISTICS CANADA ALSO ESTIMATED THAT CAPITAL SPENDING BY MAJOR COMPANIES THIS YEAR WILL RISE 09 9311100184 931110 NATIONAL ENERGY WELL'S OUTPUT DALLAS NATIONAL ENERGY GROUP INC SAID ITS VERNA ROBERTS NO 1 WELL IN ELLIS COUNTY OKLA HAS BEEN PUT INTO PRODUCTION AT A RATE OF 1100000 CUBIC FEET OF NATURAL GAS AND 25 BARRELS OF OIL A DAY THROUGH A 15/64INCH OPENING NATIONAL ENERGY IS AN OIL AND GAS EXPLORATION AND PRODUCTION COMPANY 9311100182 931110 OHM FINALIZES US CONTRACT FINDLAY OHIO OHM CORP SAID IT FINALIZED A FIVEYEAR 50 MILLION CONTRACT WITH THE US ARMY CORPS OF ENGINEERS FOR HAZARDOUSWASTE REMEDIATION SERVICES THE CONTRACT IS FOR THE REMEDIATION OF SEVERAL VARIOUS HAZARDOUSWASTE SITES ACROSS THE US AND MAY BE USED FOR VARIOUS FEDERAL AGENCIES SUCH AS THE DEPARTMENTS OF DEFENSE ENERGY AND INTERIOR THIS CONTRACT REPLACES THE 50 MILLION ONE AWARDED AND ALREADY PAID OUT TO OHM BY THE CORPS IN 1989 OHM IS A NATIONAL ENVIRONMENTAL CLEANUP FIRM 9311100181 931110 USAIR UNIT'S TRAFFIC INCREASES ARLINGTON VA USAIR A UNIT OF USAIR GROUP INC SAID ITS OCTOBER TRAFFIC ROSE 15 TO 311 BILLION REVENUE PASSENGER MILES FROM 270 BILLION MILES A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 612 FROM 571 9311100179 931110 KAISER ALUMINUM UNIT'S CREDIT HOUSTON KAISER ALUMINUM CORP SAID THAT ITS KAISER ALUMINUM & CHEMICAL CORP UNIT HAS SIGNED A COMMITMENT LETTER WITH BANK OF AMERICA TO REFINANCE ITS EXISTING BANKCREDIT AGREEMENT THE PROPOSED NEW CREDIT AGREEMENT WOULD PROVIDE THE KAISER UNIT WITH A FIVEYEAR 300 MILLION REVOLVING LINE OF CREDIT TO REPLACE AN EXISTING LINE OF CREDIT WITH THE BANK OF AMERICA AND OTHER LENDERS THAT WOULD HAVE EXPIRED ON NOV 30 1994 AS OF SEPT 30 THE UNIT HAD ABOUT 149 MILLION IN UNUSED BORROWING CAPACITY UNDER THE EXISTING AGREEMENT THE COMPANY SAID 9311100177 931110 WHO'S NEWS NEW JOY TECHNOLOGIES PRESIDENT PITTSBURGH JOHN NILS HANSON 51 YEARS OLD WAS NAMED PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR OF JOY TECHNOLOGIES INC A MININGEQUIPMENT MANUFACTURER AND SERVICER AS PRESIDENT MR HANSON SUCCEEDS MARC WRAY WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE CHIEF OPERATING OFFICER POST IS NEW MR HANSON'S ELECTION AS A DIRECTOR INCREASES JOY'S BOARD TO EIGHT MEMBERS MR HANSON WAS SENIOR VICE PRESIDENT AND PRESIDENT OF JOY'S MINING MACHINERY DIVISION WHICH HE WILL CONTINUE TO HEAD THE COMPANY WILL NOT NAME ANOTHER SENIOR VICE PRESIDENT 9311100175 931110 RJR NABISCO CHANGES COURSE RAISING CIGARETTE PRICES BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL RJR NABISCO HOLDINGS CORP GINGERLY DIPPED ITS TOE BACK INTO THE PRICING WATERS EFFECTIVELY RAISING THE PRICE OF ITS WINSTON CAMEL AND OTHER CIGARETTE BRANDS BY A NICKEL A PACK ALTHOUGH A MODEST 27 INCREASE AT RETAIL THE STRATEGY IS FRAUGHT WITH RISK SMOKERS HAVE SHOWN THAT THEY ARE SENSITIVE TO PRICE MEANWHILE THE INCREASE COMES AT THE SAME TIME THE TOBACCO INDUSTRY IS TRYING TO CONVINCE CONGRESS THAT A SHARP INCREASE IN TOBACCO TAXES WOULD DEVASTATE THE INDUSTRY PHILIP MORRIS COS AND THE OTHER TOBACCO COMPANIES DIDN'T IMMEDIATELY MATCH THE PRICE INCREASE ALTHOUGH MOST ANALYSTS EXPECT THEM TO RJR ALSO EFFECTIVELY INCREASED THE PRICE OF ITS BUDGET BRANDS SUCH AS DORAL AND MONARCH BY A NICKEL A PACK CONSUMER REACTION TO THE CIGARETTE PRICE INCREASES IS CERTAIN TO BE CLOSELY WATCHED BY OTHER MARKETERS OF BRANDNAME PACKAGED GOODS WHICH HAVE ALSO BEEN STRUGGLING AGAINST LOWERPRICED PRIVATE LABEL GOODS AND SHOPPERS' RESISTENCE TO HIGHER PRICES WHILE SOME ANALYSTS JUBILANTLY DECLARED THE CIGARETTE PRICE WAR OVER THE PRICE RISE GENERATED AN ANGRY RESPONSE FROM SMOKERS RETAILERS AND SOME POWERFUL MONEY MANAGERS IT'S GETTING RIDICULOUS SAYS JOHN BASELICE A TWOPACKADAY WINSTON LIGHT SMOKER OF BOYNTON BEACH FLA EARLIER IN THE YEAR MR BASELICE HAD DROPPED HIS SEARCH FOR A PALATABLE CHEAP CIGARETTE WHEN THE INDUSTRY CUT PRICES BY 20 BUT WITH PRICES BEGINNING TO CREEP BACK UP HE VOWS TO TRADE DOWN I'M JUST THROWING MONEY AWAY AFTER YEARS OF RAISING PRICES BY AS MUCH AS 10 A YEAR PHILIP MORRIS ANNOUNCED A 40CENTAPACK PRICE CUT IN APRIL IN AN ATTEMPT TO WIN BACK MARLBORO SMOKERS WHO HAD FLOCKED TO DISCOUNT CIGARETTES DISCOUNT CIGARETTES PEAKED AT NEARLY 40 OF THE DOMESTIC CIGARETTE MARKET BEFORE DROPPING BELOW 36 IN RECENT WEEKS THE CUTS IMPLEMENTED IN LATE MAY AND MADE PERMANENT IN AUGUST LAUNCHED A PRICE WAR THAT COST THE CIGARETTE COMPANIES BILLIONS OF DOLLARS IN PROFITS AND BILLIONS MORE IN LOST STOCK VALUE NOW THE PROSPECT OF FRESH PRICE INCREASES COULD REKINDLE THE GROWTH OF CHEAP CIGARETTES IT'S TOO SOON SAYS GARY LANGBAUM DIRECTOR OF RESEARCH FOR KEMPER FINANCIAL SERVICES IN CHICAGO ANY GOODWILL THAT THE COMPANIES HAVE BUILT WILL BE LOST MR LANGBAUM ALSO SAID IT WAS NAIVE OF RJR TO RAISE PRICES AMID DELIBERATIONS OVER HIGHER EXCISE TAXES ON CIGARETTES KIN LEUNG A CIGARETTE BUYER AT TARGET STORES THE DISCOUNTSTORE DIVISION OF DAYTON HUDSON CORP CALLED THE LATEST PRICING MOVE CONFUSING AND SHORTSIGHTED I WOULD PREFER THAT THEY HAD A LONGTERM PRICING STRATEGY RATHER THAN JERKING PRICES BACK AND FORTH HE SAID THEY DEFINITELY WILL STEER PEOPLE BACK INTO THE DISCOUNT CIGARETTES IF THEY RAISE PRICES MORE RJR CONFIRMED THE PRICE INCREASES BUT DECLINED TO DISCUSS ITS STRATEGY RJR SAID ITS WHOLESALE PRICE WOULD INCREASE 4 CENTS A PACK OR 37 FOR ITS PREMIUM BRANDS ANALYSTS SAID THAT TRANSLATES INTO A NICKEL A PACK INCREASE AT RETAIL RJR'S WHOLESALE DISCOUNT PRICES ARE BEING RAISED BY 4 CENTS A PACK OR 49 THE NATIONAL AVERAGE PRICE OF PREMIUM CIGARETTES BEFORE THE CHANGE WAS 187 AND THE AVERAGE PRICE OF DISCOUNT CIGARETTES WAS 131 ASKED IF THE COMPANY IS WORRIED ABOUT ALIENATING SMOKERS AN RJ REYNOLDS SPOKESWOMAN WOULD ONLY SAY IT'S IN THE BEST INTEREST OF OUR BUSINESS MANY INVESTORS AGREED RJR'S SHARES FOLLOWING THE COMPANY'S FIRST PRICE INCREASE ON PREMIUM CIGARETTES SINCE MARCH ROSE 375 CENTS TO 675 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PHILIP MORRIS ROSE 1 TO 5575 AND AMERICAN BRANDS INC ROSE 125 CENTS TO 3325 IN TRADING ON THE BIG BOARD I WOULD SAY THE PRICE WAR IS OVER SAID GARY BLACK AN ANALYST WITH SANFORD C BERNSTEIN & CO THIS SUGGESTS THAT THE INDUSTRY IS RETURNING TO A PATTERN OF EMPHASIZING PROFITS OVER MARKET SHARE SOME TOBACCO DISTRIBUTORS SAID THE NICKEL JUMP MIGHT GO UNNOTICED BY MANY SMOKERS THIS IS ONE OF THE MOST WELCOME MOVES IN THE LAST SIX MONTHS IN THE CIGARETTE INDUSTRY SAID ROB HUBERMAN OF STARKMAN DISTRIBUTORS IN ATLANTIC CITY NJ THE FACT THAT IT'S MODEST AND ACROSS THE BOARD GIVES EVERYBODY A CHANCE TO START BREATHING A SIGH OF RELIEF AT RJR THE PRICE INCREASE IS DESPERATELY NEEDED BECAUSE IT IS THE COMPANY THAT MOST DEPENDS ON DOMESTIC TOBACCO THE PRICE WAR HAS HAD A CRUSHING IMPACT ON ITS PROFIT WHICH PLUNGED 58 IN THE THIRD QUARTER UNDER ITS NEW CHAIRMAN AND CHIEF EXECUTIVE CHARLES M HARPER RJR HAS ALREADY ANNOUNCED PLANS TO ELIMINATE ABOUT 1000 TOBACCO JOBS AND IS UNDER PRESSURE TO CUT EXPENSES FURTHER PHILIP MORRIS HAS BEEN LEADING THE WAY IN MOST OF THE PRICING MOVES AND LAST WEEK SIGNALED THAT IT WAS PREPARING TO RAISE PRICES BY LIMITING THE NUMBER OF CIGARETTES THAT ITS WHOLESALERS COULD BUY PHILIP MORRIS DECLINED TO COMMENT BUT BERNSTEIN'S MR BLACK SAID HE EXPECTS PHILIP MORRIS TO MATCH THE PRICE INCREASE ON PREMIUM BRANDS SOON AND RAISE PRICES BY EVEN MORE THAN A NICKEL ON ITS DISCOUNT BRANDS SUCH AS BASIC THAT WOULD CONTINUE TO NARROW THE PRICE GAP BETWEEN PREMIUM CIGARETTES AND CHEAP CIGARETTES AMERICAN BRANDS INC AND BROWN & WILLIAMSON A DIVISION OF BA T INDUSTRIES PLC ALSO DECLINED TO COMMENT ON THEIR PRICING PLANS SOME OBSERVERS SAID IT'S UNLIKELY THAT THE CIGARETTE COMPANIES WILL QUICKLY RETURN TO THEIR AGGRESSIVE PRICING STRATEGY OF THE PAST I DON'T THINK THEY ARE GETTING BACK ON THE UP ESCALATOR OF PRICING SAID TOBACCO ANALYST BARRY ZIEGLER OF AG EDWARDS IN ST LOUIS BUT WHILE MR HUBERMAN THE ATLANTIC CITY DISTRIBUTOR SAID THE NICKEL INCREASE IS TOO MODEST TO BOTHER MOST CONSUMERS HE SAID HE BELIEVES THAT A MUCH MORE SERIOUS INCREASE WILL FOLLOW NEXT YEAR THE ONLY LOSER IN THIS HE ADDED IS THE CONSUMER 9311100173 931110 COMPTEK RESEARCH'S CONTRACTS BUFFALO NY COMPTEK RESEARCH INC SAID ITS FEDERAL SYSTEMS SUBSIDIARY RECEIVED NEW CONTRACTS AND CONTRACT EXTENSIONS TOTALING 63 MILLION THE TECHNICAL ELECTRONICS AND DATA COMMUNICATIONS SYSTEMS COMPANY SAID IT RECEIVED A ONEYEAR EXTENSION ON TWO COMPUTER SOFTWARE CONTRACTS TOTALING 46 MILLION FOR THE US NAVY COMPTEK ALSO RECEIVED A NAVY CONTRACT WORTH 11 MILLION TO DEVELOP AND INSTALL A STANDARD ELECTRONIC WARFARE SUPPORT SYSTEM AN ADDITIONAL CONTRACT OF 600000 WAS FROM FR AVIATION LTD FOR SUPPLIES OF COMPUTER HARDWARE AND SOFTWARE FOR BRITAIN'S AIR FORCE AND NAVY COMTEK HAD SALES OF 64 MILLION FOR THE YEAR ENDED MARCH 31 9311100171 931110 MARKETING & MEDIA ADVERTISING SIGN LANGUAGE FOR DEAF SPEAKS TO GROWING LIST OF ADVERTISERS BY KEVIN GOLDMAN IN TELEVISION ADVERTISING THE SPOKEN WORD IS USUALLY AS CRITICAL AS THE PICTURE YET A NEW KELLOGG'S CORN FLAKES COMMERCIAL IS VIRTUALLY SILENT HERE THE ACTRESS SKEPTICAL OF THE CEREAL PLACED IN FRONT OF HER IS DEAF SHE USES SIGN LANGUAGE PARDONMOI SHE SAYS BY SIGNING CAN I BE EXCUSED THE TRANSLATION IS DISPLAYED FOR VIEWERS VIA SUBTITLES FINALLY SHE TASTES THE PRODUCT AND NATURALLY LOVES IT HER REACTION IS PSYCH THAT SLANG TERM TRANSLATES INTO AN ENTHUSIASTIC ENDORSEMENT SIGN LANGUAGE IN ADVERTISING IS ON THE INCREASE SUCH ADS WILL SURELY CAPTURE A VIEWER'S ATTENTION WHEN THE TELEVISION SUDDENLY FALLS SILENT TO BE SURE SPOTS WITH INDIVIDUALS SIGNING WON'T FLOOD THE AIRWAVES EVEN SO SUCH COMPANIES AS ANHEUSERBUSCH MCDONALD'S PACIFIC BELL AND AMERICAN AIRLINES ARE USING OR HAVE USED SIGN LANGUAGE IN COMMERCIALS NEXT MONTH AMERICAN TELEPHONE & TELEGRAPH WILL BEGIN AIRING A COMMERCIAL IN WHICH A WOMAN USES SIGN LANGUAGE TO COMMUNICATE WITH AN ANIMATED CHARACTER WHO'S SITTING IN FRONT OF A TELEVISION SET THE SPOT PROMOTES A NEW TOLLFREE NUMBER FOR DEAF AND HARDOFHEARING INDIVIDUALS SUCH ADS ARE A DIRECT APPEAL TO THE APPROXIMATELY 26 MILLION AMERICANS WHO ARE DEAF OR WHO HAVE DIFFICULTY HEARING WHILE THE ADS COULD BE DISMISSED AS A CYNICAL ATTEMPT TO GRAB SOME PUBLICITY AT LEAST ONE NATIONAL ASSOCIATION DOESN'T SEE IT THAT WAY THESE ADS CREATE A BROADER AWARENESS OF THE ABILITY OF DEAF AND HARDOFHEARING PEOPLE SAYS NANCY BLOCH DIRECTOR OF THE NATIONAL ASSOCIATION OF THE DEAF THE ADS SHE SAYS SHOW THE GENERAL POPULATION THAT THE DEAF ARE REGULAR CONSUMERS WHO SHOP AND BUY PRODUCTS LIKE EVERYONE ELSE ADVERTISERS BELIEVE IT IS ADVANTAGEOUS TO TARGET SUCH A RELATIVELY SMALL SEGMENT AND THEY SAY THE ADS HAVE A POSITIVE INFLUENCE ON CONSUMERS WITH NO HEARING PROBLEMS IT'S ALMOST EDUCATIONAL SAYS PATTY MICHAELS SENIOR VICE PRESIDENT AND CREATIVE DIRECTOR AT LEO BURNETT WHICH PRODUCED THE KELLOGG'S CORN FLAKES AD IT DOES A LOT FOR THE PRODUCT YOU STOP AND LOOK AT THIS SPOT BUT THERE IS A BIGGER REASON TO DO THIS OTHER THAN BREAK THROUGH THE CLUTTER MORE AND MORE CLIENTS ARE AWAKENING TO THE FACT THAT THESE INDIVIDUALS ARE PART OF THE MARKET MS MICHAELS SAYS BURNETT AND KELLOGG HAVE AN INTEREST IN PORTRAYING MINORITIES AND OTHER MEMBERS OF THE COMMUNITY WHO ARE KELLOGG CUSTOMERS AS FOR THE ENERGETIC YOUNG WOMAN WHO STARS IN THE CORN FLAKES SPOT MS MICHAELS SAYS YOU COULD ALMOST UNDERSTAND HER EVEN IF YOU DIDN'T UNDERSTAND SIGN LANGUAGE THE AD USES SUBTITLES TO CONVEY WHAT SHE IS SIGNING ALTHOUGH AT TIMES IT ISN'T NECESSARY FOR EXAMPLE BEFORE TASTING THE CEREAL SHE SIGNS GAG ME AND GRABS HER THROAT LAST MONTH THE KELLOGG SPOT WHICH HAS BEEN RUNNING FOR A FEW MONTHS WON AN EDI EQUALITY DIGNITY AND INDEPENDENCE AWARD GIVEN BY THE NATIONAL EASTER SEAL SOCIETY ORGANIZATIONS SUCH AS EASTER SEAL SAY THERE IS NO RISK FOR ADVERTISERS TO TARGET THESE CUSTOMERS NO ONE IS GOING TO STOP USING THE PRODUCT IF A PERSON USING SIGN LANGUAGE APPEARS IN THE AD SAYS THE EASTER SEAL SPOKESWOMAN THERE IS NO STIGMA ATTACHED TO SIGN LANGUAGE AND IT CERTAINLY DOESN'T MAKE ANYONE FEEL UNCOMFORTABLE ONE CURRENT AD ACTUALLY USES THE FACT THAT A WOMAN MAKES HER LIVING SIGNING AS THE REASON WHY SHE BUYS THE PRODUCT DR SCHOLL'S CLEAR AWAY SHOWS A WOMAN SIGNING WITH AN INTERPRETER STANDING BESIDE HER I USE MY HANDS TO SPEAK TO THE WORLD SO WHEN I HAVE A WART I CAN'T HIDE THEM BUT I CAN HIDE THE WART AND HEAL IT WITH THE PRODUCT FROM SCHERINGPLOUGH A SPOKESMAN FOR SCHERINGPLOUGH SAYS THAT COMMERCIAL USING A DEAF WOMAN WORKED WELL WITH THE PRODUCT IT WAS AN EXCELLENT MATCH WHILE AMERICAN AIRLINES DOESN'T DEVOTE AN ENTIRE SPOT TO A DEAF INDIVIDUAL SIGN LANGUAGE IS USED AS PART OF A SERIES OF VIGNETTES IN AN AD DUBBED WELCOME HOME IN WHICH TRAVELERS ARE GREETED AT AN AIRPORT ONE SCENE SHOWS DEAF OR HARDOFHEARING INDIVIDUALS REUNITING AFTER ONE OF THEM ARRIVES ON A PLANE WHILE ADS FOR KELLOGG DR SCHOLL'S AND OTHERS ARE SHOWN ON NETWORK TELEVISION THE NEW AT&T AD SCHEDULED TO BEGIN AIRING NEXT MONTH WILL BE TARGETED TO A SPECIFIC SHOW DEAF MOSAIC ON CABLE'S DISCOVERY CHANNEL NOT ALL THE ADS USING SIGN LANGUAGE ARE ON TELEVISION ROLM SYSTEMS A TELEPHONE COMPANY HAD DRAWINGS OF SIGN LANGUAGE IN PRINT ADS WITH THE HEADLINE IF YOU LISTEN HARD ENOUGH YOU HEAR ALMOST ANYTHING THE AD DESCRIBES ROLM'S TELEPHONE DEVICES FOR THE DEAF OR TDD COCACOLA REASSIGNED SEVERAL SMALL SOFTDRINK ACCOUNTS ADDING CHIAT/DAY AND THE MARTIN AGENCY TO ITS POOL OF CREATIVE SOURCES THE ATLANTA COMPANY MOVED THE CHERRY COKE ACCOUNT TO CHIAT BASED IN VENICE CALIF INTERPUBLIC GROUP'S MCCANNERICKSON NEW YORK PREVIOUSLY HANDLED THE ACCOUNT WHICH BILLED LESS THAN 500000 LAST YEAR COKE ALSO REASSIGNED THE MELLO YELLO CITRUS SODA ACCOUNT TO THE MARTIN AGENCY RICHMOND VA ANOTHER UNIT OF INTERPUBLIC GROUP THAT ACCOUNT WITH ESTIMATED BILLINGS OF 32 MILLION IN 1992 WAS PREVIOUSLY AT THE NEW YORK OFFICE OF INTERPUBLIC'S LOWE GROUP LOWE ACQUIRED MARTIN LAST WEEK WHEN IT BOUGHT SCALI MCCABE SLOVES IN ADDITION COKE MOVED ITS POWERADE SPORTS DRINK ACCOUNT FROM MCCANN'S NEW YORK OFFICE TO ITS SEATTLE OFFICE LAST MONTH COKE NAMED FALLON MCELLIGOTT MINNEAPOLIS AND WIEDEN & KENNEDY PORTLAND ORE AS AGENCIES FOR SPECIAL PROJECTS STILL CONTINUING IS A REVIEW OF DIET COKE ADVERTISING IN NONENGLISH SPEAKING COUNTRIES AN ACCOUNT CURRENTLY HANDLED BY INTERPUBLIC GROUP'S LINTAS COKE MOVED MOST OF THE DIET COKE BUSINESS FROM LINTAS TO LOWE LAST MONTH 9311100170 931110 INTERNATIONAL SEGA'S PROFIT GREW AT A SLOWER PACE IN FISCAL 1ST HALF BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO VIDEOGAME MAKER SEGA ENTERPRISES LTD REPORTED SLOWER PROFIT GROWTH FOR THE FIRST HALF SUGGESTING THAT THE HOT GAME MARKET IS COOLING OFF FOR THE SIX MONTHS ENDED SEPT 30 SEGA'S UNCONSOLIDATED PRETAX PROFIT ROSE JUST 44 TO 2858 BILLION YEN 2651 MILLION FROM 2738 BILLION YEN IN THE YEARAGO PERIOD UNCONSOLIDATED SALES MEANWHILE JUMPED 20 TO 20065 BILLION YEN FROM 16734 BILLION YEN FOR SEVERAL YEARS SEGA AND ARCHRIVAL NINTENDO CO HAVE BEEN AMONG THE FEW BRIGHT SPOTS IN JAPAN'S BATTERED ELECTRONICS SECTOR ROUTINELY POSTING PROFIT GROWTH OF 10 TO 15 AT THE SAME TIME SEGA LOWERED ITS FORECAST FOR UNCONSOLIDATED EARNINGS FOR THE YEAR ENDING MARCH 31 BLAMING THE STRONG YEN WHICH MAKES JAPANESE PRODUCTS MORE EXPENSIVE OVERSEAS AND CUTS INTO OVERSEAS PROFITS THAT ARE LATER CONVERTED INTO THE JAPANESE CURRENCY THE COMPANY PREVIOUSLY PREDICTED FULLYEAR SALES OF 400 BILLION YEN AND A 635 BILLION YEN PRETAX PROFIT IT NOW PROJECTS SALES OF 380 BILLION YEN AND A 575 BILLION YEN PRETAX PROFIT EVEN UNDER THE REVISED FORECAST SEGA STILL EXPECTS SALES TO GROW 95 AND PRETAX PROFIT TO RISE 45 FROM THE PREVIOUS YEAR SUCH EXPECTATIONS LOOK ROSY COMPARED WITH NINTENDO WHICH IN EARLY OCTOBER FORECAST A 13 DECLINE IN GROUP SALES AND A 36 DROP IN PRETAX PROFIT OVER THE SAME PERIOD COMPARED WITH A YEAR EARLIER NEITHER SEGA NOR NINTENDO PLANS ANY MAJOR NEW PRODUCTS FOR THE HOMEGAME MARKET UNTIL LATE NEXT YEAR AND ANALYSTS THINK THE COMPANIES WON'T SEE A RETURN TO RAPID GROWTH UNTIL AFTER THE 1994 CHRISTMAS SEASON IN TOKYO TRADING TUESDAY SEGA FELL 110 YEN 102 TO CLOSE AT 8990 YEN WHILE NINTENDO DROPPED 330 YEN TO 6920 YEN HOWEVER THE MARKET AS A WHOLE WAS DOWN SHARPLY MEANWHILE ANOTHER JAPANESE ELECTRONICS COMPANY COMPUTER MAKER FUJITSU LTD LOWERED ITS EARNINGS FORECAST FOR THE YEAR ENDING MARCH 31 CITING THE YEN'S RAPID APPRECIATION AND CONTINUED STAGNATION IN SALES OF ITS MAINFRAME COMPUTERS FUJITSU NOW EXPECTS CONSOLIDATED PRETAX PROFIT OF 35 BILLION YEN DOWN FROM ITS EARLIER FORECAST OF 50 BILLION YEN BUT STILL AN IMPROVEMENT FROM LAST YEAR'S 16 BILLION YEN PRETAX LOSS IT ALSO EXPECTS SALES TO FALL 9 TO 315 TRILLION YEN FROM 3462 TRILLION YEN 9311100168 931110 TECHNOLOGY & HEALTH AST TO CUT 3 OF WORK FORCE REVAMP UNITS BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL AST RESEARCH INC DIGESTING ITS RECENT ACQUISITION OF TANDY CORP'S PERSONALCOMPUTER BUSINESS SAID IT WOULD CUT ITS WORLDWIDE WORK FORCE BY A NET OF ABOUT 3 AND REALIGN MANUFACTURING OPERATIONS TO IMPROVE DISTRIBUTION AND TRIM COSTS THE COMPUTER MAKER IN IRVINE CALIF SAID THE MOVES WERE NECESSARY TO POSITION ITSELF FOR FUTURE GROWTH AST IS IN A VERY TOUGH VERY COMPETITIVE BUSINESS AND WE HAVE TO PRODUCE A PRODUCT IN THE MOST EFFICIENT MANNER SAID SAFI QURESHEY CHAIRMAN AND CHIEF EXECUTIVE OFFICER WE HAVE TO GENERATE THE PROFITS TO INVEST IN OUR GROWTH IN ACQUIRING TANDY'S PC BUSINESS LAST JULY FOR ABOUT 175 MILLION AST BECAME THE FOURTHLARGEST PC MAKER ACCORDING TO 1992 RANKINGS OF US SHIPMENTS COMPILED BY INTERNATIONAL DATA CORP A FRAMINGHAM MASS MARKETRESEARCH FIRM AST TOOK A ONETIME PRETAX CHARGE OF 125 MILLION IN THE FISCAL FOURTH QUARTER ENDED JULY 3 TO COVER RESTRUCTURING COSTS ASSOCIATED WITH THE TRANSACTION WHEN THE CUTS ARE COMPLETED BY THE END OF NEXT JUNE AST SAID ITS CURRENT WORLDWIDE WORK FORCE OF ABOUT 6700 WOULD BE REDUCED BY NEARLY 1050 POSITIONS OR 16 WITH NEARLY 700 CUTS TO OCCUR AT MANUFACTURING AND CUSTOMERSUPPORT LOCATIONS IN CALIFORNIA MOST OF THE CUTS WILL BE OFFSET BY AN ADDITION OF ABOUT 850 NEW POSITIONS PRIMARILY AT FACILITIES IN FORT WORTH TEXAS AND LIMERICK IRELAND AND MR QURESHEY SAID SOME EMPLOYEES CUT FROM EXISTING JOBS MAY BE REHIRED AST IS TRANSFERRING ITS US DESKTOPCOMPUTER MANUFACTURING FROM FOUNTAIN VALLEY CALIF TO FORT WORTH WHERE THE TANDY BUSINESS HAD BEEN CONCENTRATED THE COMPANY IS ALSO SHIFTING ITS CUSTOMER SERVICE AND SUPPORT OPERATIONS TO FORT WORTH FROM THE IRVINE HEADQUARTERS ABOUT 500 NEW JOBS ARE EXPECTED TO BE CREATED IN FORT WORTH MR QURESHEY SAID CALIFORNIA HAS PROVEN TOO COSTLY TO RETAIN SOME LINES OF BUSINESS ALTHOUGH HE ADDED CORPORATE HEADQUARTERS ENGINEERING AND MANUFACTURING OF PORTABLE PCS WOULD REMAIN IN THE GOLDEN STATE THE MOVE TO FORT WORTH ISN'T SURPRISING BECAUSE PC MAKERS AND OTHER COMPUTER COMPANIES HAVE BEEN SHIFTING OPERATIONS TO TEXAS WHERE COSTS ARE LOWER THAN IN MORE EXPENSIVE STATES LIKE CALIFORNIA IN THE RESTRUCTURING AST IS ALSO BEEFING UP ITS PRESENCE IN ASIA AND EUROPE IT SAID IT WOULD CLOSE A COSTLIER MANUFACTURING PLANT THAT TANDY HAD USED IN EAST KILBRIDE SCOTLAND AND SHIFT PRODUCTION TO A NEWLY ACQUIRED FACILITY IN LIMERICK AST IS ALSO OPENING A MANUFACTURING PLANT IN TIANJIN CHINA TO SERVICE THE CHINESE MARKET THE COMPANY WILL ALSO PRODUCE DESKTOP COMPUTERS IN HONG KONG AND PORTABLE COMPUTERS IN TAIWAN ANALYSTS PRAISED THE RESTRUCTURING MOVES SAYING THEY WERE NECESSARY AND EXPECTED THIS WILL LEVERAGE THE STRENGTHS OF THE TWO COMPANIES AST AND THE TANDY PC BUSINESS WHERE IT MAKES MOST SENSE TO MANUFACTURE IN BOTH COSTS AND GEOGRAPHICALLY SAID TODD BAKAR SENIOR TECHNOLOGY ANALYST FOR HAMBRECHT & QUIST AST'S STOCK FELL 50 CENTS CLOSING AT 2150 A SHARE IN NASDAQ STOCK MARKET TRADING YESTERDAY ANALYSTS ATTRIBUTED THE DROP TO PROFITTAKING 9311100167 931110 CLIPPER CAPITAL PARTNERS NEW YORK CLIPPER CAPITAL PARTNERS LP A PRIVATE INVESTMENT PARTNERSHIP SAID BROKERAGE FIRM CS FIRST BOSTON GROUP AND ITS PARENT CS HOLDING COMMITTED A TOTAL OF 400 MILLION TO CLIPPER FOR MERCHANTBANKING TRANSACTIONS CS HOLDING COMMITTED 300 MILLION TO THE GROUP WHILE CS FIRST BOSTON COMMITTED 100 MILLION CLIPPER SAID HALF OF THE AMOUNT WILL BE USED FOR PRIVATE EQUITY INVESTMENTS AND HALF WILL BE USED FOR INTERIM FINANCING FOR ACQUISITIONS RECAPITALIZATIONS AND OTHER TRANSACTIONS 9311100166 931110 IRS SEES BIG RISE IN FRAUDULENT ELECTRONIC RETURNS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE INTERNAL REVENUE SERVICE IS FINDING A SHARP RISE IN FRAUDULENT TAX RETURNS FILED ELECTRONICALLY THE GENERAL ACCOUNTING OFFICE SAID IN WIDERANGING TESTIMONY BEFORE THE HOUSE WAYS AND MEANS OVERSIGHT SUBCOMMITTEE THE GAO ALSO REPORTED A SIGNIFICANT DECLINE IN TAX RETURNS FILED FOR 1992 THE GAO CALLED THIS NONCOMPLIANCE WITH TAX RULES A SURPRISING DEVELOPMENT ATTRIBUTABLE CHIEFLY TO THE BUSH ADMINISTRATION'S CHANGE IN TAX WITHHOLDING TABLES THROUGH THE FIRST EIGHT MONTHS OF 1993 IRS HAD IDENTIFIED MORE THAN 23000 FRAUDULENT ELECTRONIC RETURNS 100 MORE THAN DURING THE SAME PERIOD LAST YEAR THE GAO SAID EVEN THOUGH THE TOTAL NUMBER OF RETURNS FILED ELECTRONICALLY GREW ONLY 14 IN THE PERIOD THE CONGRESSIONAL WATCHDOG AGENCY SAID THE PROMPTNESS OF REFUNDS FOR THE PERPETRATORS ABOUT TWO WEEKS UNDER NORMAL PROCEDURES AND FASTER IN CERTAIN CASES MAKES ELECTRONIC FILING AN APPEALING TARGET FOR FRAUD OF THE 489 MILLION CLAIMED IN THE 23000 FRAUDULENT RETURNS FILED ELECTRONICALLY SO FAR THIS YEAR THE GAO SAID IRS WAS ABLE TO STOP ONLY 283 MILLION BEFORE REFUNDS WERE MADE JENNIE STATHIS HEAD OF TAX POLICY AND ADMINISTRATIVE ISSUES FOR THE GAO DESCRIBED ELECTRONICALLY FILED TAX RETURNS AS CENTRAL TO THE IRS OF THE FUTURE BUT SAID THE AGENCY HADN'T GIVEN ENOUGH THOUGHT TO SYSTEM RISKS AND NOW FINDS ITSELF PLAYING CATCHUP MOST FRAUDULENT ELECTRONICALLY FILED RETURNS INVOLVE THE EARNED INCOME TAX CREDIT THE GAO SAID THE AGENCY SAID THE BUSH ADMINISTRATION'S CHANGE IN TAX WITHHOLDING TABLES WHICH WAS BILLED AT THE TIME AS PUTTING MORE MONEY IN CONSUMERS' POCKETS AND PROVIDING A BOOST TO THE ECONOMY CAUSED MORE TAXPAYERS TO OWE TAXES AND FEWER TO RECEIVE REFUNDS THIS YEAR FOR THIS REASON THERE ARE ABOUT 12 MILLION TAXPAYERS WHO CHOSE NOT TO FILE RETURNS FOR 1992 BUT SHOULD HAVE OVERALL ABOUT TWO MILLION FEWER TAXPAYERS FILED RETURNS FOR 1992 THAN THE YEAR BEFORE AND ABOUT 37 MILLION FEWER RETURNS WERE FILED THAN THE IRS EXPECTED THE GAO SAID TAXPAYERS WHO CALLED THE IRS FOR GUIDANCE IN 1993 HAD ONLY A 1IN4 CHANCE OF GETTING THROUGH WORSE THAN THEIR 1IN3 PROSPECTS IN 1992 AND IT SAID THE RECENT HISTORY OF IRS EFFORTS TO COMMUNICATE WITH TAXPAYERS BY MAIL IS LITTERED WITH DELAYED INACCURATE INCOMPLETE AND CONFUSING RESPONSES TO TAXPAYER QUERIES IT ALSO SAID DELINQUENT TAXPAYERS' TREATMENT AT THE HANDS OF THE IRS OFTEN DEPENDS ON WHERE THEY LIVE BECAUSE OF UNEVEN STAFFING TAXPAYERS WHO RESIDE IN PLACES LIKE WYOMING MAY FEEL THE FULL FORCE OF IRS'S COLLECTION ENFORCEMENT EFFORTS WHILE TAXPAYERS LIVING IN NEW YORK MAY NOT THE GAO SAID IN ADDITION THE GAO SAID THE IRS'S COLLECTION OF DELINQUENT TAXES DECLINED IN THE 1993 TAX SEASON FOR THE THIRD YEAR IN A ROW TO 228 BILLION FROM 242 BILLION IN 1992 IT SAID INCREASED COLLECTIONS MAY BE ACHIEVED FROM ACCOUNTS THAT THE IRS HAS DEEMED CURRENTLY NOT COLLECTIBLE SUGGESTING THAT THE AGENCY IS TOO QUICK TO DESIGNATE MANY ACCOUNTS NOT COLLECTIBLE PARTLY BECAUSE ACCOUNTS SO DESIGNATED ARE GIVEN THE SAME WEIGHT UNDER IRS STAFFEVALUATION PROCEDURES AS CASES IN WHICH DOLLARS ARE COLLECTED 9311100165 931110 MARKETING & MEDIA CANADIAN NEWSPRINT PRODUCTION MONTREAL CANADIAN NEWSPRINT PRODUCTION FELL 27 IN SEPTEMBER TO 722000 METRIC TONS FROM A YEAR EARLIER THE CANADIAN PULP AND PAPER ASSOCIATION SAID CANADIAN MILLS OPERATED AT 90 OF CAPACITY IN SEPTEMBER COMPARED WITH 89 A YEAR EARLIER THE ASSOCIATION SAID SEPTEMBER NEWSPRINT SHIPMENTS TO THE US FELL 126 TO 443000 METRIC TONS FROM A YEAR EARLIER SHIPMENTS WITHIN CANADA ROSE 191 TO 93000 METRIC TONS SHIPMENTS TO OFFSHORE MARKETS FELL 23 TO 195000 METRIC TONS 9311100164 931110 A HIGHTECH TRAVELER'S CHECK' BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL TRAVELERS WHO DON'T LIKE CARRYING A WALLET FULL OF CASH OR TRAVELER'S CHECKS WILL HAVE ANOTHER WAY TO SPEND NEXT YEAR VISA USA A UNIT OF VISA INTERNATIONAL IS EXPECTED TO LAUNCH A PREPAID TRAVEL CARD FOR USE IN AUTOMATICTELLER MACHINES AROUND THE WORLD ONCE UP AND RUNNING THE CARD COULD BE USED TO GET LOCAL CURRENCY AT ONE OF 160000 ATMS IN 65 COUNTRIES AT MORE COMPETITIVE FOREIGNEXCHANGE RATES THAN TRAVELER'S CHECKS IF LOST OR STOLEN THE CARD WOULD AUTOMATICALLY BE TURNED OFF AND ANOTHER ONE ISSUED VISA PLANS TO INTRODUCE THE CARD IN SELECTED MARKETS NEXT YEAR WITH A FULL ROLLOUT IN 1995 EVENTUALLY THE CARD WILL BE USED NOT JUST AT ATMS BUT AT MERCHANTS' POINTOFSALE TERMINALS JUST LIKE A CREDIT CARD OTHER ISSUERS ARE ALSO EYEING THE MARKET CITIBANK JAPAN AND JAPAN TRAVEL BUREAU A JAPANESE TRAVEL AGENCY RECENTLY LAUNCHED A PREPAID CARD FOR JAPANESE CUSTOMERS THAT CAN BE USED IN THE 45 COUNTRIES THAT ARE LINKED TO THE CIRRUS ATM NETWORK AND MASTERCARD INTERNATIONAL IS BELIEVED TO BE WORKING ON A PREPAID CARD IN EUROPE WHILE SUCH A CARD IS PROBABLY NOT FOR EVERYONE IT COULD PROVE USEFUL FOR BUSINESS TRAVELERS AND FREQUENT VACATIONERS IT'S A HIGHTECH VERSION OF A TRAVELER'S CHECK SAYS DAVID ROBERTSON PRESIDENT OF THE NILSON REPORT A CREDITCARD NEWSLETTER IT'S AIMED AT THE AFFLUENT AND THE BUSINESS TRAVELER WHO ARE WILLING TO PAY FOR SERVICE WHY NOT JUST USE AN EXISTING CREDIT CARD ONE REASON IS THAT VISA AND OTHERS BELIEVE CONSUMERS LIKE TO SEGREGATE TRAVEL FUNDS FROM OTHER SPENDING WHEN THE ACCOUNT IS TAPPED OUT JUST THROW OUT THE CARD IN ADDITION A FAMILY CAN BE ISSUED MULTIPLE CARDS FROM ONE ACCOUNT AND CORPORATIONS CAN ISSUE CARDS TO EMPLOYEES FOR INCIDENTALS THE FEES FOR THE NEW CARDS WILL LIKELY BE COMPARABLE TO THE PRICE OF TRAVELER'S CHECKS AND THE CARDS COULD BE ADDITIONALLY PROFITABLE FOR BANKS WHICH RECEIVE THE INTEREST FLOAT BETWEEN THE TIME THE CARD IS PURCHASED AND WHEN THE CASH IS DEDUCTED FROM THE ACCOUNT BANKS WILL PITCH THE CARD AS A SAFER WAY TO TRAVEL WITH HUGE SUMS OF MONEY IT'S ANOTHER LEVEL OF SECURITY FOR THE TRAVELER SAID MR ROBERTSON IT'S PROBABLY NOT GOOD NEWS FOR AMERICAN EXPRESS CO WHICH SOLD 24 BILLION OF TRAVELER'S CHECKS LAST YEAR AND DOMINATES THE MARKET A SPOKESWOMAN FOR AMERICAN EXPRESS POINTED TO THE INCONVENIENCE OF FINDING AN ATM PROGRAMMED WITH THE RIGHT LANGUAGES AS WELL AS THE EASE WITH WHICH TRAVELER'S CHECKS ARE REFUNDED 9311100163 931110 INTERNATIONAL CHINA'S COMMUNIST PARTY LEADERS TO TAKE UP FINANCIAL REFORMS SWEEPING ARRAY OF MEASURES COULD SPEED TRANSITION TO A MARKET ECONOMY BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG CHINA'S COMMUNIST PARTY CENTRAL COMMITTEE IN A SESSION OPENING THURSDAY IS EXPECTED TO APPROVE A BARRAGE OF ECONOMIC MEASURES TO SPEED THE COUNTRY'S TRANSITION TO A MARKET ECONOMY IN WHAT COULD BE THE LAST MAJOR POLICY MEETING TO BE HELD UNDER AILING LEADER DENG XIAOPING TOP PARTY REPRESENTATIVES ARE LIKELY TO ENDORSE A PACKAGE INCLUDING TAX BANKING AND OTHER FINANCIAL REFORMS ALTHOUGH THE PACKAGE IS LIKELY TO BE SHORT ON DETAILS IT WILL SET THE BLUEPRINT FOR CHINA'S ECONOMIC DEVELOPMENT OVER THE NEXT FEW YEARS THE MEASURES ALSO APPEAR AIMED AT STRENGTHENING BEIJING'S WANING POWER OVER THE PROVINCES AND TIGHTENING ITS GRIP ON MACROECONOMIC POLICY BY INTRODUCING A SWEEPING ARRAY OF MEASURES AT ONCE IN WHAT SOME ECONOMISTS TERM A BIG BANG THE TOP LEADERSHIP APPARENTLY HOPES FOR SWIFTER PROGRESS IN ADAPTING ITS TAX SYSTEM FOREIGN EXCHANGE MARKET BANKS AND AILING STATE COMPANIES TO THE REALITIES OF A MARKET ECONOMY THE STAKES ARE HIGH IF BEIJING FAILS TO WIN THE SUPPORT OF LOCAL OFFICIALS AT THE PLENUM AND AFTERWARD CHINA COULD SPIN INTO ANOTHER FRENZY OF STOCK AND PROPERTY SPECULATION LEADING TO AN EVEN MORE PRONOUNCED BOOMBUST CYCLE BEIJING ONLY RECENTLY RELAXED AN AUSTERITY PROGRAM IMPOSED BY VICE PREMIER ZHU RONGJI IN LATE JUNE TO COOL CHINA'S OVERHEATED ECONOMY ALTHOUGH INFLATION CONTINUES TO RACE AT ABOUT 20 ANNUALLY IN MAJOR CITIES BANKS HAVE BEGUN TO ISSUE NEW LOANS UNDER PRESSURE FROM PROVINCIAL AUTHORITIES STATE INDUSTRY AND APPARENTLY MR DENG HIMSELF WHO HAS BEEN QUOTED AS SAYING ONLY FAST GROWTH IS SOCIALISM THE LATEST BOUT OF OVERHEATING AND THE LIMITED SUCCESS OF MR ZHU'S AUSTERITY PROGRAM HELPED CONVINCE THE TOP LEADERSHIP THAT A BIG BANG APPROACH TO REFORM IS NECESSARY ECONOMISTS BELIEVE SO DID THE GROWING BUDGET DEFICIT FACING THE CENTRAL GOVERNMENT THE BEIJINGBACKED NEWSPAPER WEN WEI PO SAID MONDAY THAT THE CORE PROBLEMS OF THE OLD CENTRALPLANNING SYSTEM ARE BEYOND THE POINT OF BEING RESOLVED BY COMPROMISE NICHOLAS KWAN AN ECONOMIST AT MERRILL LYNCH IN HONG KONG SAYS THE PRESSURE FOR SWIFT ACTION IS STRONG IF THE TOP LEADERS CAN'T DO IT THIS TIME IT WILL BE MUCH MORE DIFFICULT NEXT TIME BECAUSE LOCAL OFFICIALS ARE GETTING MORE POWERFUL MR KWAN SAYS AND THE LEADERS MIGHT NOT HAVE THE POLITICAL BACKING OF A STRONGMAN LIKE DENG XIAOPING TO PUSH THROUGH THE CHANGES EVEN WITH MR DENG AROUND RESISTANCE COULD BE FIERCE FROM LOCAL OFFICIALS LOATH TO GIVE UP THEIR GROWING AUTONOMY THEY ARE ALSO LIKELY TO GRUMBLE ABOUT A PROPOSED NEW TAX SYSTEM THE CENTERPIECE OF BEIJING'S REFORM PACKAGE WHICH WOULD GIVE THE CENTRAL GOVERNMENT MORE REVENUE AT THE EXPENSE OF THE REGIONS TO DRUM UP SUPPORT FOR THE TAX CHANGES MR ZHU LED A 60MEMBER GROUP TO THE BOOMING SOUTHERN PROVINCES OF GUANGDONG AND HAINAN IN SEPTEMBER TO DISCUSS THE PLAN MEASURE BY MEASURE BEIJING IS ALSO LIKELY TO OFFER SOME INDUCEMENTS FOR EXAMPLE BY ALLOWING LOCAL AUTHORITIES TO APPROVE MORE INVESTMENT PROJECTS ON THEIR OWN BANKING REFORMS WHICH ARE EXPECTED TO RESULT IN THE ESTABLISHMENT OF COMMERCIAL BANKS WOULD GIVE LOCAL LEADERS MORE FLEXIBILITY IN OBTAINING LOANS THAN THEY HAVE HAD UNDER THE CENTRALLY PLANNED SYSTEM STILL LOCAL RESISTANCE COULD MEAN IT WON'T BE A BIG BANG EVEN IF THE CENTRAL GOVERNMENT TRIES TO MAKE ONE SAYS GUOCANG HUAN A SENIOR ECONOMIST AT JP MORGAN IN HONG KONG IT DOESN'T HAVE THE STRENGTH TO DO IT AND ITS PLANS WILL BE DISCOUNTED BY LOCAL AUTHORITIES AND VARIOUS MINISTRIES THE REFORM PACKAGE IS LIKELY TO BE VAGUE ON DETAILS AND ON A TIMETABLE FOR IMPLEMENTATION LEAVING MUCH ROOM FOR NEGOTIATION BETWEEN LOCAL AND CENTRAL AUTHORITIES CHINESE AND HONG KONG ECONOMISTS EXPECT SOME OF THE REFORMS SUCH AS THE INTRODUCTION OF A NEW TAX SYSTEM AND ELIMINATION OF THE FIXED OFFICIAL RATE FOR THE YUAN TO BEGIN TAKING EFFECT NEXT YEAR BUT BANKING AND OTHER MORE COMPLEX REFORMS COULD TAKE SEVERAL YEARS TO IMPLEMENT COMPLETELY THE DANGER OF DELAYING IMPLEMENTATION IS THAT THE ECONOMY COULD VEER OUT OF CONTROL AGAIN BY DECENTRALIZING SOME ASPECTS OF THE ECONOMY BEIJING WOULD BE ALLOWING MORE MONEY TO FLOW INTO THE SYSTEM SUCH AS THROUGH NEW COMMERCIAL BANKS ALLOWED TO MAKE THEIR OWN LENDING DECISIONS IF BEIJING ISN'T ABLE TO GAIN CONTROL OVER THE MONETARY SYSTEM INFLATION COULD SURGE THE GOVERNMENT WOULD THEN HAVE TO RESORT TO TOUGH ADMINISTRATIVE MEASURES TO REIN IN THE ECONOMY MOVING TOO QUICKLY IS ALSO RISKY IF THE PLENUM APPROVES REFORMS ALLOWING LARGESCALE PRIVATIZATION OF SMALL AND MEDIUMSIZED STATE ENTERPRISES AS SOME EXPECT UNEMPLOYMENT COULD SOAR THE UNEMPLOYED COULD BECOME A SOURCE OF SOCIAL INSTABILITY ESPECIALLY BECAUSE CHINA DOESN'T HAVE AN ADEQUATE SOCIAL WELFARE SYSTEM THE PLENUM WHICH IS EXPECTED TO END SUNDAY OR MONDAY ISN'T LIKELY TO ANNOUNCE ANY MAJOR LEADERSHIP CHANGES ALTHOUGH MR ZHU SEEMS TO HAVE LOST SOME OF HIS PREVIOUS CLOUT BECAUSE OF THE EARLY RELAXATION OF HIS AUSTERITY PROGRAM THE PLENUM PROBABLY WON'T ANNOUNCE AN END TO THE PROGRAM OR CRITICIZE MR ZHU INSTEAD IT'S EXPECTED SIMPLY TO REPEAT MR DENG'S CALLS FOR SPEEDING UP REFORMS 9311100162 931110 INTERNATIONAL CHINA IN SIGNIFICANT SHIFT MAY ALLOW RED CROSS COMMITTEE TO INSPECT PRISONS BY LAURENCE ZUCKERMAN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG IN AN APPARENT BID TO MEET WASHINGTON'S DEMANDS THAT IT IMPROVE ITS RECORD ON HUMAN RIGHTS CHINA SAID IT MAY ALLOW THE INTERNATIONAL COMMITTEE OF THE RED CROSS TO INSPECT ITS PRISONS SPEAKING TO REPORTERS IN BEIJING AHEAD OF NEXT WEEK'S ASIAPACIFIC SUMMIT IN SEATTLE WHERE PRESIDENT JIANG ZEMIN OF CHINA AND US PRESIDENT CLINTON WILL MEET FOREIGN MINISTER QIAN QICHEN SAID BEIJING WOULD GIVE POSITIVE CONSIDERATION TO A REQUEST FOR VISITS BY THE COMMITTEE ACCEPTANCE OF SUCH VISITS WOULD REPRESENT A SIGNIFICANT SHIFT IN CHINA'S ATTITUDE THE CLINTON ADMINISTRATION SAYS THE RIGHTS ISSUE WILL DETERMINE WHETHER CHINA REMAINS ELIGIBLE NEXT YEAR FOR MOST FAVORED NATION STATUS UNDER WHICH IT HAS ACCESS TO THE US MARKET ON THE SAME MINIMUM TARIFF AND OTHER TERMS GRANTED TO MOST TRADING PARTNERS THIS IS THE FIRST GOOD PIECE OF NEWS I'VE HAD ON THIS FRONT FOR A LONG TIME SAID ROBIN MUNRO DIRECTOR OF THE HONG KONG OFFICE OF ASIA WATCH A DIVISION OF NEW YORKBASED HUMAN RIGHTS WATCH IN WASHINGTON THE STATE DEPARTMENT SAID THAT ACCESS TO CHINESE PRISONS WOULD BE A POSITIVE STEP AND THAT IT WOULD BE AN IMPORTANT FACTOR IN DETERMINING WHETHER OR NOT THERE HAS BEEN SIGNIFICANT PROGRESS IN HUMAN RIGHTS A BEVY OF CLINTON ADMINISTRATION OFFICIALS HAVE VISITED CHINA IN THE PAST MONTH SPREADING THE MESSAGE THAT THE US IS EAGER TO ESTABLISH A NEW CONSTRUCTIVE RELATIONSHIP AT NEXT WEEK'S SUMMIT IF BEIJING IMPROVES ITS TREATMENT OF DISSIDENTS AND LIVES UP TO COMMITMENTS IN OTHER AREAS OF FRICTION SUCH AS TRADE AND SALES OF MILITARY TECHNOLOGY THE ICRC BASED IN SWITZERLAND HAS STRICT CONDITIONS UNDER WHICH IT AGREES TO MAKE SUCH VISITS IT INSISTS ON BEING GIVEN ACCESS TO ALL PRISONERS IN A GIVEN CATEGORY SUCH AS COUNTERREVOLUTIONARIES FOR SUSTAINED PERIODS FREE OF ANY OFFICIAL SUPERVISION IT MUST BE ABLE TO MAKE REPEAT VISITS AND IT MUST BE ALLOWED TO MAKE A RECORD OF ALL PRISONERS IN THE SPECIFIED CATEGORY AND FURNISH FOOD AND MEDICINE IF NECESSARY IN RETURN THE COMMITTEE AGREES TO KEEP ALL OF ITS FINDINGS CONFIDENTIAL UNLESS AUTHORIZED BY THE HOST GOVERNMENT RESERVING THE RIGHT TO PROVIDE ONLY THE BAREST OF INFORMATION TO A PRISONER'S FAMILY BY ITS OWN COUNT CHINA'S MINISTRY OF JUSTICE DETAINS 3317 PRISONERS CONVICTED OF FOMENTING COUNTERREVOLUTION HOWEVER MR MUNRO OF ASIA WATCH BELIEVES THERE ARE MANY MORE WHO HAVE NOT BEEN FORMALLY TRIED AND CONVICTED 9311100161 931110 WALLACE COMPUTER SERVICES INC HILLSIDE ILL WALLACE COMPUTER SERVICES INC PLANS TO DISCLOSE TODAY ITS ENTRY INTO THE NASCENT FIELD OF ELECTRONIC FORMS WALLACE IS A BIG BUSINESSFORMS AND COMMERCIALPRINTING CONCERN SUCH FORMS ARE DESIGNED TO ALLOW BUSINESSES TO REDUCE OR ELIMINATE THE NEED FOR PREPRINTED FORMS IN WORKPLACE APPLICATIONS SUCH AS EXPENSEACCOUNT SHEETS OR INVENTORY USES THE SPECIALIZED SOFTWARE MODULES PERMIT USERS TO FORGO PAINSTAKINGLY FILLING OUT FORMS AND SHIPPING THEM OUT INSTEAD THE DATA IS TRANSMITTED OVER A COMPANY'S COMPUTER NETWORK OR VIA EMAIL WITHOUT THE FORM EVER BEING PRINTED OUT BESIDES GREATER PROCESSING SPEED AND IMPROVED ACCURACY ELECTRONIC FORMS CAN PROVIDE SAVINGS BECAUSE AN ESTIMATED ONETHIRD OF PRINTED FORMS ARE THROWN AWAY WITHOUT BEING USED INFORMATION CHANGES SO QUICKLY THE PREPRINTED FORMS BECOME OBSOLETE 9311100160 931110 TECHNOLOGY & HEALTH GENE THERAPY METHOD MAY OFFER HOPE IN TREATING ANEMIA WITH PROTEIN EPO BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA MEDICAL RESEARCHERS SAID THEY ARE EXPERIMENTING WITH A GENE THERAPY TECHNIQUE TO PROVIDE PATIENTS SUFFERING FROM SEVERE ANEMIA WITH A LONGLASTING INTERNAL SOURCE OF ERYTHROPOIETIN ERYTHROPOIETIN OR EPO IS THE PROTEIN THE BODY USES TO STIMULATE PRODUCTION OF OXYGENCARRYING RED BLOOD CELLS PATIENTS WITH KIDNEY FAILURE AIDS AND OTHER LIFETHREATENING DISEASES OFTEN NEED ADDITIONAL EPO TO RAISE THEIR RED BLOOD CELL COUNT IN ORDER TO OVERCOME THEIR ANEMIA CURRENTLY THEY MUST RECEIVE REPEATED INFUSIONS OF A GENETICALLY ENGINEERED FORM OF EPO THE GENE THERAPY APPROACH TO PROVIDING A PATIENT WITH A CONTINUOUS SOURCE OF EPO IS STILL IN THE STAGE OF ANIMAL EXPERIMENTS AND THUS MAY WELL FAIL TO WORK HOWEVER IF THE ANIMAL EXPERIMENTS ARE SUCCESSFUL THE TECHNIQUE PROBABLY WILL BE READY FOR ITS FIRST HUMAN TRIALS IN ABOUT A YEAR JEFFREY LEIDEN A UNIVERSITY OF CHICAGO SCIENTIST WORKING ON THE TECHNIQUE TOLD REPORTERS DURING THE ANNUAL SCIENTIFIC SESSIONS OF THE AMERICAN HEART ASSOCIATION THE TECHNIQUE'S POSSIBLE DEVELOPMENT IS OF CONSIDERABLE INTEREST NOT ONLY TO AIDS AND KIDNEY PATIENTS BUT ALSO TO AMGEN INC THE THOUSAND OAKS CALIF BIOTECHNOLOGY COMPANY AMGEN PRODUCES AND SELLS ABOUT 500 MILLION A YEAR OF A GENETICALLY ENGINEERED FORM OF HUMAN EPO TRADENAMED EPOGEN JOHNSON & JOHNSON SELLS ANOTHER BRAND OF THE SAME PRODUCT UNDER THE NAME PROCRIT DR LEIDEN WHO IS AN ADVISER TO VICAL INC ONE OF THE BIOTECHNOLOGY COMPANIES INTERESTED IN THE NEW TECHNIQUE SAID THE GENE THERAPY APPROACH TO TREATING ANEMIA IS POTENTIALLY USEFUL IN THE 50000 AIDS PATIENTS AND 85000 KIDNEY PATIENTS WHO CURRENTLY MUST RECEIVE INFUSIONS OF EPOGEN WE AT AMGEN WILL BE WATCHING DEVELOPMENTS AS THEY OCCUR A SPOKESMAN SAID THE DATA ARE OBVIOUSLY EXTREMELY EARLY AND A LOT CAN HAPPEN DURING THE CLINICAL TRIAL PROCESS A SPOKESMAN FOR JOHNSON & JOHNSON DECLINED TO COMMENT DR LEIDEN SAID HE AND HIS COLLEAGUES ARE WORKING ON THE IDEA OF INSERTING THE HUMAN GENE FOR EPO INTO IMMATURE MUSCLE CELLS CALLED MYOBLASTS GROWN IN THE TEST TUBE MYOBLASTS ARE UNUSUAL BECAUSE WHEN TRANSPLANTED OR INJECTED INTO A PATIENT THEY CAN LODGE IN THE PATIENT'S OWN MUSCLES AND FUNCTION THERE THE HOPE IS THAT ONCE THE MYOBLASTS ESTABLISH THEMSELVES IN THE PATIENT'S BODY THEY'LL STEADILY SECRETE HUMAN EPO INTO THE BLOODSTREAM OBVIATING THE NEED FOR REPEATED INFUSIONS OF GENETICALLY ENGINEERED EPO DR LEIDEN NOTED THAT AIDS PATIENTS AND PATIENTS IN KIDNEY FAILURE REQUIRE INFUSIONS OF EPO TWO OR THREE TIMES A WEEK EVEN DAILY IN SOME CASES DR LEIDEN SAID THE USE OF GENETICALLY ALTERED MYOBLASTS IS BEING CONSIDERED FOR A NUMBER OF OTHER DISEASES MYOBLASTS CARRYING HUMAN GENES FOR THE PROTEINS THAT CAUSE BLOOD TO CLOT ARE BEING DEVELOPED AS POSSIBLE TREATMENTS FOR HEMOPHILIA FOR EXAMPLE HE SAID THE SCIENTIST SAID THAT WITHIN A YEAR RESEARCHERS SHOULD BE READY TO ASK FEDERAL AGENCIES FOR CLEARANCE TO BEGIN HUMAN TRIALS OF GENE THERAPIES USING MYOBLASTS HE CAUTIONED HOWEVER THAT SINCE AMGEN'S EPO IS ALREADY AVAILABLE THERE MAY NOT BE AS MUCH URGENCY TO APPROVE THE GENE THERAPY APPROACH FOR LIFETHREATENING ANEMIAS AS THERE MIGHT BE FOR A DISEASE WHICH CAN'T YET BE TREATED 9311100159 931110 WHO'S NEWS ZAPATA CORP ZAPATA CORP HOUSTON PETER M HOLT 45 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HOLT COS WILL JOIN THE BOARD OF THE NATURALGAS SERVICE COMPANY ZAPATA JUST COMPLETED THE PURCHASE OF ENERGY INDUSTRIES INC FROM HOLT MR HOLT SUCCEEDS MICHAEL B MORRIS 73 WHO RESIGNED FROM THE BOARD 9311100158 931110 COMMODITIES CORN PRICES ARE EXPECTED TO SOAR AFTER FORECAST OF 314 PLUNGE IN US HARVEST FROM LAST YEAR BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO US CORN PRICES ARE EXPECTED TO SOAR TODAY IN THE WAKE OF AN AGRICULTURE DEPARTMENT FORECAST PREDICTING THE US CORN HARVEST WILL PLUNGE 314 FROM LAST YEAR THE GOVERNMENT PEGGED THE NATION'S BIGGEST CROP AT 650 BILLION BUSHELS BASED ON NOV 1 CONDITIONS THE FORECAST WHICH WAS BELOW MARKET EXPECTATIONS MARKS THE FIFTH CONSECUTIVE MONTH THAT THE GOVERNMENT HAS LOWERED ITS HARVEST OUTLOOK TO ACCOUNT FOR THE RECORD SUMMER RAIN AND FLOODING ACROSS THE MIDWEST LAST SUMMER IN OCTOBER THE GOVERNMENT PROJECTED A 696 BILLION BUSHEL CORN CROP THE FORECAST HOWEVER CHANGES THE OUTLOOK FOR GRAIN PRICES AND IS A BLOW FOR THE FARM ECONOMY AND FOOD INDUSTRY FOR CONSUMERS THE REPORT ALSO SIGNALS AT LEAST A SLIGHT ACCELERATION IN FOOD INFLATION NEXT YEAR THE CORN CROP GETTING HARVESTED ACROSS THE MIDWEST IS TOO SMALL TO SUPPLY BOTH DOMESTIC PROCESSORS AND EXPORTERS THAT MEANS US STOCKPILES ARE EXPECTED TO BE DRAINED TO THE LOWEST LEVEL SINCE THE FOOD SCARE OF THE MID1970S ANOTHER CROP DISASTER NEXT YEAR COULD CAUSE SHORTAGES WE ARE VULNERABLE IN 1994 RIGHT ON THE EDGE SAID KEITH COLLINS ACTING ASSISTANT AGRICULTURE SECRETARY FOR ECONOMICS THE DEPARTMENT ALSO PROJECTED THE US SOYBEAN HARVEST TO SHRINK 16 TO 183 BILLION BUSHELS FROM LAST YEAR SEVERAL ECONOMISTS AND GRAIN TRADERS ARE PREDICTING CORN PRICES COULD RISE TO 3 A BUSHEL THIS WINTER WHICH WOULD INCREASE THE OPERATING COSTS OF COMPANIES THAT HANDLE EVERYTHING FROM CORNBASED ETHANOL FUEL TO LIVESTOCK FEED MADE FROM GRAIN REPRESENTS ABOUT TWOTHIRDS THE COST OF PRODUCING A FRESH CHICKEN THE NEW NUMBERS MEAN THE POTENTIAL FOR A PRETTY DRAMATIC IMPACT ON OUR FEED COSTS SAID A SPOKESMAN FOR POULTRY GIANT TYSON FOODS INC SPRINGDALE ARK THE MONTHLY CROP REPORT WAS RELEASED AFTER THE CLOSE OF TRADING AT THE CHICAGO BOARD OF TRADING YESTERDAY THE CORN CONTRACT FOR DECEMBER DELIVERY ROSE 075 CENTS A BUSHEL TO SETTLE AT 26125 A BUSHEL FOOD PRICES AREN'T EXPECTED TO REACT AS SHARPLY AS THEY HAVE IN THE PAST TO SUCH TIGHT GRAIN SUPPLIES IN THE 1970S AND 1980S GRAIN PRICES HAD TO RISE TO CERTAIN LEVELS IN ORDER TO TRIGGER THE RELEASE OF GOVERNMENTOWNED STOCKPILES IN RECENT YEARS THE GOVERNMENT HAS REDUCED ITS RESERVES AS A RESULT SOME ECONOMISTS FIGURE THE TIGHT GRAIN SITUATION MIGHT ADD LESS THAN ONE PERCENTAGE POINT NEXT YEAR TO FOOD INFLATION BEFORE YESTERDAY'S CROP FORECAST SOME ECONOMISTS HAD PEGGED 1994 FOOD INFLATION AT A MODEST 25 THIS YEAR'S FOOD INFLATION RATE IS ESTIMATED AT JUST 2 BY THE AGRICULTURE DEPARTMENT A GRAIN PRICE RALLY THIS TIME OF YEAR IS UNUSUAL PRICES USUALLY WEAKEN AS THE HARVESTS REPLENISH GRAIN ELEVATORS ACROSS THE COUNTRYSIDE BUT THE REACTION OF THE GRAIN MARKETS DURING THE SUMMER DELUGE WAS MUTED IN PART BECAUSE ANALYSTS HAD LITTLE EXPERIENCE CALCULATING THE DAMAGE CAUSED BY THE EXCESSIVE RAINS DROUGHTS ARE FAR MORE COMMON IN THE MIDWEST HIGHER GRAIN PRICES WILL HELP EASE THE STING OF POOR CROPS FOR SOME FARMERS BUT THE IMPACT WILL BE UNEVEN FARMERS IN MUCH OF ILLINOIS AND INDIANA WILL BENEFIT THE MOST BECAUSE THEY LARGELY MISSED THE DELUGE AND ARE HARVESTING BUMPER CROPS HIGHER GRAIN PRICES MIGHT ACTUALLY WORSEN THE FINANCIAL CONDITION OF LIVESTOCK FARMERS IN IOWA MINNESOTA AND SOUTH DAKOTA THE EXCESSIVE RAIN THERE PREVENTED MANY HOG AND DAIRY FARMERS FROM GROWING ENOUGH CROPS TO FEED THEIR ANIMALS THAT MEANS THEY WILL HAVE TO BUY GRAIN AND AT HIGH PRICES AS A RESULT SOME ECONOMISTS EXPECT MANY FARMERS TO BEGIN LIQUIDATING PARTS OF THEIR HERDS THE OUTLOOK FOR HIGHER GRAIN PRICES IS ALSO A BLOW TO EXPORTERS ALREADY HOBBLED BY ANEMIC DEMAND THE AGRICULTURE DEPARTMENT TRIMMED ITS US CORN EXPORT PROJECTION FOR THE YEAR ENDING AUG 31 1994 TO 135 BILLION BUSHELS DOWN 19 FROM LAST YEAR THE TIGHT STOCKPILE SITUATION IS ALREADY FUELING A POLITICAL DEBATE SEVERAL GRAIN PROCESSORS SUCH AS CLOSELY HELD NEW YORKBASED CONTINENTAL GRAIN CO AND MINNEAPOLISBASED CARGILL INC ARE ADVOCATING THAT THE AGRICULTURE DEPARTMENT ELIMINATE ITS PLANTING RESTRICTIONS ON FARMERS ENROLLING IN NEXT YEAR'S CORN PRICESUPPORT PROGRAM THE DEPARTMENT DECIDED EARLIER TO REQUIRE CORN FARMERS TO IDLE 5 OF THEIR ELIGIBLE ACREAGE SO THAT PRICEDEPRESSING STOCKPILES DON'T DEVELOP NEXT FALL BUT AGRICULTURE SECRETARY MIKE ESPY HAS UNTIL NEXT WEEK TO REVISE THE SOCALLED SETASIDE REQUIREMENT WITH CORN SUPPLIES DOWN TO WHERE A DROUGHT WOULD DO CONSIDERABLE ECONOMIC DAMAGE TO WORLD FOOD SUPPLIES IT IS RISKY ALMOST IRRESPONSIBLE FOR THE NATION TO CONTINUE ANY SETASIDE PROGRAM SAID A SPOKESMAN AT ARCHERDANIELSMIDLAND CO A DECATUR ILL GRAIN PROCESSOR SOME FARM GROUPS HOWEVER HAVE FAVORED SOME SETASIDE REQUIREMENT ON THE BELIEF IT SUPPORTS GRAIN PRICES ELIMINATING THE CORN SETASIDE REQUIREMENT COULD PUT MORE THAN 80 MILLION ACRES INTO PRODUCTION NEXT SPRING WHICH WOULD BE A BOON FOR THE FIRMS THAT SELL FARMERS THEIR SEED AND CHEMICALS CORN FIELDS ARE SOME OF THE MOST CHEMICALLY TREATED OF THE MAJOR CASH CROPS LAST SPRING US CORN FARMERS PLANTED 737 MILLION ACRES IN OTHER COMMODITY MARKETS YESTERDAY ENERGY CRUDE OIL AND PRODUCT FUTURES PRICES FINISHED SLIGHTLY LOWER IN MODERATE TRADING WITH DECEMBER CONTRACTS SETTLING AT A THREEANDAHALF YEAR LOW OF 1666 A BARREL TRADERS SAID THE MARKET REMAINS HAUNTED BY THE SPECTER OF A RESUMPTION OF IRAQI OIL EXPORTS AND CONTINUES TO BE UNDER PRESSURE FROM A SHARP WORLDWIDE SUPPLY AND DEMAND IMBALANCE DECEMBER CONTRACTS FOR CRUDE OIL HEATING OIL AND GASOLINE ALL SET LIFEOFCONTRACT LOWS FOR THE SECOND CONSECUTIVE DAY TRADERS CONTINUE TO SEE A MARKET AWASH IN CRUDE AND RECENT REPORTS QUOTING OIL MINISTERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES SAYING THE GROUP ISN'T CONSIDERING FURTHER CUTBACKS HAVE ADDED TO BEARISHNESS PRICES ARE EXPECTED TO REMAIN UNDER PRESSURE IN ADVANCE OF THE VISIT BY TARIQ AZIZ IRAQ'S DEPUTY PRIME MINISTER TO THE UNITED NATIONS LATER THIS MONTH HE IS EXPECTED TO CALL FOR THE SECURITY COUNCIL TO LIFT SANCTIONS IMPOSED ON IRAQ IN 1990 9311100157 931110 LAW LEGAL BEAT BILL TO SPEED CASES IN US COURTS WORRIES SOME LAWYERS AND JUDGES BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL CONGRESS IS TAKING STEPS TOWARD REDUCING PERVASIVE OVERCROWDING IN FEDERAL COURTS BUT SOME LAWYERS AND JUDGES ARE UNHAPPY ABOUT IT THE DEBATE CENTERS ON LEGISLATION TO ALLOW FEDERAL JUDGES TO ASSIGN SOME OF THEIR SMALLER CASES TO COURTAPPOINTED ARBITRATORS OVER THE YEARS COURTS IN 10 FEDERAL DISTRICTS HAVE EXPERIMENTED WITH MANDATORY ARBITRATION PROGRAMS WHILE OTHER COURTS HAVE TRIED VOLUNTARY PROGRAMS NOW THE HOUSE HAS PASSED A BILL THAT WOULD AUTHORIZE ALL FEDERAL COURTS TO DEVELOP SOME KIND OF ARBITRATION PROGRAM THE LEGISLATION HAS BEEN ENDORSED BY SUCH GROUPS AS THE AMERICAN BAR ASSOCIATION AND THE FEDERAL JUDICIAL CENTER THE RESEARCH ARM OF THE FEDERAL COURTS AND PEOPLE WHO HAVE HAD FIRSTHAND EXPERIENCE IN THE 10 MANDATORY PILOT PROGRAMS SAY ARBITRATION IN SMALL FEDERAL CASES IS A COSTEFFECTIVE AND FAIR WAY OF SPEEDING FAIRLY STRAIGHTFORWARD MATTERS THROUGH AN OTHERWISE BADLY CLOGGED COURT SYSTEM THIS SYSTEM IN OUR COURT HAS BEEN HUGELY SUCCESSFUL SAYS STEWART DALZELL A US DISTRICT JUDGE IN PHILADELPHIA WHERE ROUGHLY ONE IN FIVE CASES ON AVERAGE IN RECENT YEARS WENT TO ARBITRATION MOSTLY PERSONAL INJURY CASES AND CONTRACT DISPUTES THE LITIGANTS STILL HAVE THE RIGHT TO SEEK A JURY TRIAL AFTER THE ARBITRATION BUT THEY DO SO IN LESS THAN 2 OF THE CASES ACCORDING TO JUDGE DALZELL BUT THE PROPOSAL HAS ALSO PROMPTED AN OUTCRY FROM MANY JUDGES AND LAWYERS THEY CONDEMN THE APPROACH AS INFRINGING ON CITIZENS' CONSTITUTIONAL RIGHTS TO JURY TRIALS AMONG THOSE EXPRESSING RESERVATIONS FOR INSTANCE HAVE BEEN THE JUDICIAL CONFERENCE OF THE US THE COURTS' POLICYMAKING ARM AS WELL AS SOME SITTING JUDGES MOST NOTABLY FROM PRESIDENT CLINTON'S HOME STATE OF ARKANSAS WHO HAVE BEEN WORKING ASSIDUOUSLY TO KILL OR WATER DOWN THE PROPOSAL OTHER OPPONENTS INCLUDE THE AMERICAN BOARD OF TRIAL ADVOCATES A GROUP OF 4000 PLAINTIFF AND DEFENSE LAWYERS REPRESENTATIVES OF WHICH TESTIFIED AGAINST THE LEGISLATION AT A SENATE JUDICIARY COMMITTEE SUBCOMMITTEE HEARING LAST MONTH THAT PANEL'S CHAIRMAN ALABAMA DEMOCRAT HOWELL HEFLIN A FORMER TRIAL LAWYER AND ALABAMA SUPREME COURT JUSTICE IS ALSO CONCERNED THAT ARBITRATION MAKES IT MORE EXPENSIVE FOR PEOPLE TO GET TO TRIAL BECAUSE THEY MAY HAVE TO ARBITRATE FIRST SOME JUDGES APPARENTLY VIEW EVERY TRIAL AS A FAILURE OF THE SYSTEM I SAY THAT IS NOT SO SAYS G THOMAS EISELE A SENIOR US DISTRICT JUDGE IN LITTLE ROCK ARK WHO HAS BEEN A LEADER OF THE OPPOSITION UNDER THE HOUSE BILL SPONSORED BY NEW JERSEY DEMOCRAT WILLIAM J HUGHES COURTS WOULD HAVE SOME FLEXIBILITY IN THE PROGRAMS THEY ESTABLISH THE LAW WOULD EMPOWER JUDGES TO SET UP PROGRAMS THAT REQUIRE CERTAIN LITIGANTS TO GO TO ARBITRATION OR PROGRAMS THAT ARE VOLUNTARY EITHER WAY LITIGANTS WILL BE ABLE TO GO TO TRIAL IF THEY DON'T LIKE THE ARBITRATORS' DECISION ONLY CASES INVOLVING DAMAGES OF 150000 OR LESS WOULD BE INCLUDED FEDERAL COURTS IN PHILADEPHIA AND PARTS OF CALIFORNIA MICHIGAN NORTH CAROLINA NEW JERSEY AND OTHER STATES HAVE BEEN AUTHORIZED TO EXPERIMENT WITH MANDATORY ARBITRATION SINCE 1988 THE AUTHORIZATION FOR THESE PILOT PROGRAMS EXPIRES AT THE END OF NEXT WEEK LAWYERS SAY CLIENTS APPRECIATE THE SYSTEM PARTICULARLY BECAUSE IT REDUCES LEGAL COSTS CASES TYPICALLY MOVE MORE RAPIDLY AND SO LAWYERS USUALLY HAVE LESS TIME TO INVOLVE THEMSELVES IN THE LENGTHY AND COSTLY PRETRIAL FACTFINDING PROCESS OPPONENTS SAY THAT REQUIRING LITIGANTS TO PROCEED THROUGH ARBITRATION ADDS ANOTHER LAYER TO LITIGATION FOR PARTIES THAT WANT A JURY TRIAL CITING THOSE GROUNDS THE JUDICIAL CONFERENCE ITSELF BACKED AWAY FROM SUPPORTING THE PORTION OF THE BILL THAT AUTHORIZES MANDATORY ARBITRATION SOME LAWYERS ARGUE THAT THE POOR WILL BE DISADVANTAGED IF THEY HAVE TO PAY LEGAL FEES FOR AN ARBITRATION BEFORE GOING TO TRIAL WE DON'T THINK THERE SHOULD BE TWO CLASSES OF JUSTICE SAYS STUART GROSSMAN A MIAMI ATTORNEY WHO HEADS UP THE TRIAL LAWYERS' CIVIL JUSTICE COMMITTEE MR GROSSSMAN THINKS CONGRESS WOULD DO BETTER TO START FILLING SCORES OF JUDICIAL VACANCIES BEFORE MAKING SUCH A CHANGE IN THE WAY THE FEDERAL JUDICIARY OPERATES IT IS BY NO MEANS A FOREGONE CONCLUSION THAT THE SENATE IS GOING TO SIGN OFF ON THE LEGISLATION REP HUGHES CONCEDES IT MAY BE DIFFICULT TO PASS LEGISLATION BEFORE NEXT WEEK'S DEADLINE TO KEEP THE PILOT PROGRAMS OPERATING WITHOUT INTERRUPTION BUT HE THINKS THE BILL HAS A GOOD CHANCE OF PASSAGE AND AT THE VERY LEAST THE PILOT PROJECTS WILL BE MAINTAINED THERE ARE JUST SOME INDIVIDUALS WHO CLING TO WHAT IS THE TRADITIONAL WAY OF RESOLVING DISPUTES HE SAYS NEVERTHELESS OF ALL THE CHANGES CONGRESS MIGHT MAKE THIS IS ONE OF THE FEW INSTANCES THAT WE CAN POINT TO WHERE WE ARE ACTUALLY PROVIDING INCREASED ACCESS TO JUSTICE A FOURTH MEMBER OF THE INSIDER TRADING RING THAT ALLEGEDLY MADE A TOTAL OF MORE THAN 35 MILLION FROM ILLEGAL TRADES IN SECURITIES OF MOTEL 6 LP PLEADED GUILTY TO CONSPIRACY JOHN ANDERSON THE OWNER OF A CHAIN OF TANNING SALONS IN LOS ANGELES HAD ALSO BEEN CHARGED WITH SECURITIES FRAUD AND MONEY LAUNDERING HE WAS SET TO GO ON TRIAL NOV 29 IN FEDERAL COURT IN NEW YORK AND IS NOW SCHEDULED FOR SENTENCING ON FEB 10 1994 HE FACES A MAXIMUM TERM OF IMPRISONMENT OF FIVE YEARS AND A FINE THAT COULD EXCEED 1 MILLION ANOTHER MEMBER OF THE RING HAS BEEN CHARGED WITH INSIDER TRADING AND IS AWAITING TRIAL ACCORDING TO THE INDICTMENT MR ANDERSON WAS TIPPED OFF TO THE TENDER OFFER FOR MOTEL 6 BY THE OWNER OF A COMMODITIES BROKERAGE WHO IN TURN HAD RECEIVED THE INFORMATION FROM A FRIEND OF A MOTEL 6 EXECUTIVE AFTER MOTEL 6 WAS ACQUIRED BY FRANCE'S ACCOR SA IN 1990 MR ANDERSON AND OTHERS ENGAGED IN A MONEYLAUNDERING SCHEME THE INDICTMENT SAID THE COMBINED PROFIT THAT MR ANDERSON SHARED OR CONTROLLED ALONE EXCEEDED 11 MILLION ACCORDING TO PROSECUTORS MARGARET A JACOBS CONTRIBUTED TO THIS COLUMN 9311100156 931110 WHO'S NEWS NUMBER OF WOMEN ON FIRMS' BOARDS ROSE 1 IN YEAR BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WOMEN MADE MINIMAL GAINS IN CORPORATE BOARD ROOMS LAST YEAR ACCORDING TO A SURVEY CONDUCTED BY A WOMEN'S RESEARCH ORGANIZATION WHILE THE NUMBER OF COMPANIES WITH FEMALE DIRECTORS GREW BY 65 NEARLY HALF OF THE FORTUNE 500 AND FORTUNE 500 SERVICE COMPANIES STILL HAVE NO FEMALE DIRECTORS AND THE TOTAL NUMBER OF WOMEN DIRECTORS CLIMBED A SCANT 1 CATALYST THE GROUP THAT DID THE SURVEY SAID ONLY 526 OF THE 1000 COMPANIES HAD WOMEN ON THEIR BOARDS AS OF MARCH 1993 COMPARED WITH 494 IN MARCH OF THE PREVIOUS YEAR ONLY 721 OR 62 OF THE 11715 DIRECTOR SEATS AT THESE 1000 COMPANIES ARE NOW HELD BY WOMEN MOST COMPANIES WITH WOMEN ON THEIR BOARDS HAVE ONLY ONE FEMALE DIRECTOR ONLY 140 COMPANIES HAD TWO WOMEN DIRECTORS AND ONLY 24 HAD THREE AND JUST TWO COMPANIES HAD A LARGER NUMBER OF FEMALE DIRECTORS TEACHERS INSURANCE & ANNUITY ASSOCIATION OF AMERICA HAD FIVE WHILE OGDEN CORP HAD FOUR MANY OF THE WOMEN ON CORPORATE BOARDS SERVE AT MORE THAN ONE COMPANY THE OVERALL POOL OF WOMEN WHO SERVED ON BOARDS BARELY GREW AT ALL BETWEEN 1992 AND 1993 THERE ARE NOW 500 FEMALE DIRECTORS COMPARED WITH 495 ONE YEAR AGO OF THE WOMEN WHO DO GET ON BOARDS MANY GET SHUNTED TO THE LEAST DESIRABLE BOARD COMMITTEES SUCH AS PUBLIC AFFAIRS INSTEAD OF COMMITTEES THAT DEAL WITH BOTTOMLINE ISSUES SUCH AS COMPENSATION SAID CATALYST PRESIDENT SHEILA WELLINGTON CORPORATE EXECUTIVES WANT MORE WOMEN ON THEIR BOARDS BUT THEY DON'T KNOW WHERE TO LOOK MS WELLINGTON SAID THE GROUP WORKS WITH EXECUTIVES TO HELP THEM FIND WOMEN FOR DIRECTORSHIPS MS WELLINGTON SAID THAT 41 OF THE 50 MOST PROFITABLE FORTUNE 500 COMPANIES HAD AT LEAST ONE FEMALE DIRECTOR WE CAN'T PROVE CAUSALITY BUT IT IS A STARTLING CORRELATION SHE SAID WOMEN MAY HELP A COMPANY'S PROFITABLITY SHE SAID BECAUING A DIFFERENT VIEWPOINT TO THE BOARDROOM WITH MORE DIVERSE POINTS OF VIEW SHE ARGUED BOARDS CAN MAKE BETTER MORE INFORMED DECISIONS WOMEN HOLD THE LARGEST PERCENTAGE OF BOARD SEATS IN COSMETICS JEWELRY PUBLISHING AND SPORTINGGOODS COMPANIES WHERE THEY HAVE MORE THAN 11 OF THE DIRECTORSHIPS THEY HAVE THEIR LOWEST REPRESENTATION IN THE MINING INDUSTRY WHERE THEY HOLD ONLY 15 OF BOARD SEATS 9311100155 931110 TECHNOLOGY & HEALTH US CRITICIZES JAPANESE PANEL ON SOFTWARE LAW BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE US LAUNCHED A PREEMPTIVE STRIKE AGAINST WHAT IT CALLED A JAPANESE ATTEMPT TO LIMIT COPYRIGHT PROTECTION FOR COMPUTER SOFTWARE IN A LETTER TO THE JAPANESE GOVERNMENT THE US CRITICIZED AN ADVISORY PANEL THAT IS CHARGED WITH RECOMMENDING CHANGES IN JAPAN'S COPYRIGHT LAW COVERING SOFTWARE A JAPANESE OFFICIAL SAID FURTHERMORE THE US WARNED JAPAN NOT TO CHANGE ITS COPYRIGHT LAW WITHOUT CONSULTING THE US FIRST THE US COMPLAINT TOUCHES ON A SORE POINT IN THE USJAPAN RELATIONSHIP JAPAN'S PROTECTION OF INTELLECTUAL PROPERTY WHEN INTERNATIONAL BUSINESS MACHINES CORP EXPRESSED INTEREST IN PRODUCING COMPUTERS IN JAPAN IN THE LATE 1950S FOR INSTANCE THE JAPANESE GOVERNMENT INSISTED THAT IBM LICENSE ITS PATENTS TO JAPANESE FIRMS IN RETURN THUS HELPING SPAWN IBM COMPETITORS SUCH AS FUJITSU LTD TODAY THE AMERICAN ELECTRONICS ASSOCIATION ESTIMATES US COMPANIES CONTROL ABOUT 70 OF THE PACKAGED SOFTWARE MARKET IN JAPAN JAPAN SAYS THE PANEL'S MISSION IS MERELY TO UPDATE COPYRIGHT PROVISIONS PERTAINING TO SOFTWARE IN LIGHT OF TECHNOLOGICAL AND SOCIAL CHANGES MANY LARGE US COMPUTER COMPANIES INCLUDING IBM AND APPLE COMPUTER INC HOWEVER SAY ANY COPYRIGHT CHANGES ARE LIKELY TO MAKE IT EASIER TO COPY THEIR SOFTWARE THE US GOVERNMENT HAS APPARENTLY TAKEN A SIMILAR LINE ON MONDAY DEPUTY US TRADE REPRESENTATIVE CHARLENE BARSHEFSKY TOLD CONGRESS THE US LETTER WOULD EXPRESS GRAVE CONCERN OVER THE STUDY GROUP AND THE NOTION THAT IT MIGHT RECOMMEND COPYRIGHT CHANGES THAT PERMIT GREATER REVERSE ENGINEERING OF SOFTWARE THAT PROCESS ESSENTIALLY ALLOWS A COMPANY TO TAKE A SOFTWARE PROGRAM BREAK IT DOWN INTO THE ONES AND ZEROES OF COMPUTER LANGUAGE AND THEN ESSENTIALLY DUPLICATE IT MICROSOFT CORP HAS SAID IT MIGHT HAVE TO CURTAIL SHIPMENTS OF SOFTWARE IN JAPAN IF REVERSE ENGINEERING BECAME WIDESPREAD WE HAVE TO PROTECT OUR PRODUCT SAID A SPOKESWOMAN GREATER USE OF REVERSE ENGINEERING COULD BE A DOUBLEEDGED SWORD FOR JAPAN THE NATION'S MOST COMPETITIVE SOFTWARE COMPANIES ARE VIDEOGAME MAKERS SUCH AS NINTENDO CO AND SEGA ENTERPRISES LTD TWO COMPANIES THAT HAVE FOUGHT VIGOROUSLY AGAINST REVERSE ENGINEERING IN THE US 9311100154 931110 RULE OF LAW PACKWOOD'S DIARIES ARE PROTECTED BY THE CONSTITUTION BY JANLORI GOLDMAN THE US SENATE VOTED 946 LAST WEEK TO AUTHORIZE ITS ETHICS COMMITTEE TO GO TO COURT TO ENFORCE A SUBPOENA AGAINST SEN ROBERT PACKWOOD R ORE FOR HIS PERSONAL DIARIES IN CONNECTION WITH ITS ONGOING INVESTIGATION INTO ALLEGATIONS OF SEXUAL MISCONDUCT THE ETHICS COMMITTEE IS DEMANDING UNRESTRICTED ACCESS TO EVERY ONE OF THE PAGES IN THE SENATOR'S DIARIES SINCE 1989 ALTHOUGH IT MAY BE ACTING WITHIN ITS OWN RULES THE ETHICS COMMITTEE IS FLOUTING CONSTITUTIONAL PRINCIPLES OF PRIVACY AND FAIRNESS BY PURSUING THE SENATOR'S DIARIES IN THEIR ENTIRETY THE CURRENT STATE OF THE LAW THAT GIVES CONGRESSIONAL COMMITTEES SUCH BROAD FREEWHEELING SUBPOENA POWER DOES NOT ADEQUATELY PROTECT PEOPLE'S PRIVACY THE ETHICS COMMITTEE'S SUBPOENA POWER SHOULD CONFORM TO FOURTH AMENDMENT STANDARDS REQUIRING A SHOW OF PROBABLE CAUSE OR REASONABLE SUSPICION BEFORE DOCUMENTS CAN BE SEIZED AT A MINIMUM THE COMMITTEE SHOULD BE HELD TO A RELEVANCY STANDARD THAT LIMITS THE SUBPOENA TO MATERIAL THAT PERTAINS TO AN INVESTIGATION A CONGRESSIONAL COMMITTEE HAS THE POWER TO CONDUCT INVESTIGATIONS AND COMPEL THE PRODUCTION OF RECORDS AND OTHER INFORMATION HOWEVER THE COMMITTEE'S POWER MUST BE CHECKED BY THE BILL OF RIGHTS AS A GOVERNMENT INVESTIGATIVE BODY THE ETHICS COMMITTEE SHOULD NOT BE GIVEN FREE REIGN TO SATISFY ITS CURIOSITY IF NO LIMITS ARE PLACED ON THE COMMITTEE'S SWEEPING SUBPOENA AUTHORITY THEN NO SENATOR'S OR PRIVATE CITIZEN'S MATERIAL WILL BE BEYOND ITS GRASP IN LIGHT OF THE HOUSE UNAMERICAN ACTIVITIES COMMITTEE HEARINGS IN THE 1950S WHICH INVESTIGATED BOTH PUBLIC AND PRIVATE CITIZENS IT IS NOT HARD TO CONJURE UP A SCENARIO THAT BEGS FOR CONSTITUTIONAL LIMITS ON CONGRESS'S REACH INTO PRIVATE AFFAIRS AS A GOVERNMENT ENTITY CONGRESS WIELDS TREMENDOUS POWER OVER BOTH ITS OWN MEMBERS AND PRIVATE CITIZENS FOR THIS REASON THE FOURTH AMENDMENT'S REQUIREMENTS OF REASONABLENESS AND SPECIFICITY SHOULD APPLY IN ITS COMPETING AND SOMETIMES CONFLICTING ROLES AS PROSECUTOR JUDGE AND JURY THE ETHICS COMMITTEE IS HARD PRESSED TO ADEQUATELY PROTECT THE SUBJECTS OF ITS INVESTIGATIONS IF THE SUBPOENA HAD BEEN ISSUED BY A CIVIL COURT A JUDGE COULD REVIEW THE DIARIES FOR RELEVANCY AND MAKE A DETERMINATION AS TO WHAT MATERIAL SHOULD BE SHARED WITH THE REQUESTING PARTY THE ETHICS COMMITTEE SHOULD FOLLOW THE SAME COURSE IT SHOULD APPOINT A NEUTRAL ARBITER TO REVIEW MR PACKWOOD'S DIARIES FOR THEIR RELEVANCE TO THE INVESTIGATION THE COMMITTEE ALREADY FOLLOWED THIS PROCEDURE WHEN IT HAD FORMER SOLICITOR GENERAL KENNETH STARR SCREEN CERTAIN PACKWOOD DOCUMENTS TO DETERMINE THE APPLICABILITY OF ATTORNEYCLIENT PRIVILEGE DIARIES OFTEN CONTAIN NOT ONLY A RECORD OF DAILY ACTIVITIES BUT AN INTIMATE SELFPORTRAIT NOT INTENDED FOR ANYONE ELSE'S EYES THE FACT THAT THE SENATOR INTENDED TO WILL THE DIARIES TO THE OREGON HISTORICAL SOCIETY DOES NOT ALTER HIS EXPECTATION OF PRIVACY FIRST IT IS NOT CLEAR WHAT PORTIONS OF THE DIARIES THE SENATOR WOULD EVENTUALLY WILL TO THE HISTORICAL SOCIETY AND SECOND ONE'S PRIVACY EVAPORATES UPON DEATH THE COURTS HAVE TAKEN NOTICE THAT PRIVATE DIARIES ENJOY A HIGH LEVEL OF LEGAL PROTECTION THEY ARE EXTREMELY RELUCTANT TO FORCE THE PRODUCTION OF PERSONAL DIARIES PARTICULARLY WHEN THE MATERIAL IS BOTH IRRELEVANT AND OF A HIGHLY PRIVATE NATURE THE GOVERNMENT SHOULD BE ABLE TO INTRUDE INTO THIS INNER SANCTUM ONLY AFTER A STRONG SHOWING THAT THE INFORMATION IT SEEKS IS NECESSARY TO ITS INVESTIGATIONS THE FACT THAT SOME OF THE DIARIES WERE TRANSCRIBED BY MR PACKWOOD'S STAFF SECRETARY DOES NOT AUTOMATICALLY MEAN THAT THE MATERIAL IS OPEN FOR REVIEW BY THE ETHICS COMMITTEE AS THE COMMITTEE MAINTAINS THE COMMITTEE MAY DETERMINE THAT IT IS NOT APPROPRIATE FOR A MEMBER OF CONGRESS TO USE STAFF TIME TO RECORD A PRIVATE JOURNAL BUT THAT IS A MATTER THAT MUST BE HANDLED SEPARATELY EVEN IF THE SENATOR MISUSES STAFF RESOURCES HE SHOULD NOT LOSE HIS ABILITY TO SHIELD PURELY PERSONAL PORTIONS OF HIS DIARY IN AN INVESTIGATION THE ETHICS COMMITTEE ARGUES THAT SEN PACKWOOD WAIVED HIS RIGHT TO KEEP ANYTHING IN THE DIARIES PRIVATE AFTER HE VOLUNTARILY PROVIDED THE DIARIES TO THE COMMITTEE HOWEVER THE SENATOR DID SO ONLY AFTER AN AGREEMENT WAS REACHED WITH THE COMMITTEE ALLOWING HIM TO MASK MATERIAL THAT FELL INTO THREE CATEGORIES FAMILY MEDICAL AND ATTORNEYCLIENT PRIVILEGE MR PACKWOOD MADE HIS DIARIES AVAILABLE IN THE CONTEXT OF THE COMMITTEE'S INITIAL INVESTIGATION ONCE A COMMITTEE STAFFER SAW A DIARY ENTRY THAT SUGGESTED AN ADDITIONAL IMPROPRIETY ON MR PACKWOOD'S PART THE COMMITTEE DEMANDED ACCESS TO THE ENTIRE UNMASKED DIARIES AT THIS JUNCTURE MR PACKWOOD RETRACTED THE DIARIES THE SENATOR INITIALLY WAIVED HIS RIGHT TO PRIVACY ONLY IN RESPONSE TO THE COMMITTEE'S STATED CHARGES AGAINST HIM ONCE THE COMMITTEE SOUGHT TO GO BEYOND THE INITIAL CHARGES MR PACKWOOD WAS NO LONGER BOUND BY THE ORIGINAL AGREEMENT THIS DOES NOT MEAN THAT THE MATERIAL THE COMMITTEE SEEKS RELATED TO NEW CHARGES IS OFF LIMITS IF THE COMMITTEE WANTS TO PROBE NEW AREAS AND SEEKS THE DIARIES TO DO SO IT SHOULD NOTIFY THE SENATOR OF THE CHANGE IN ITS INVESTIGATIVE SCOPE AND MOVE TO GAIN ACCESS TO PORTIONS RELEVANT TO ITS INQUIRY IF AN AGREEMENT CANNOT BE REACHED THE COMMITTEE CAN THEN ISSUE A SUBPOENA FOR THE RELEVANT MATERIAL THE COMMITTEE SHOULD NOT HAVE THE POWER TO RIFLE THROUGH THE SENATOR'S ENTIRE DIARIES IN THE HOPES OF FINDING SIGNS OF WRONGDOING MR PACKWOOD MAY BE AN EASY TARGET TO VILIFY BUT THE ETHICS COMMITTEE'S LAUDABLE INVESTIGATION INTO CHARGES OF SEXUAL MISCONDUCT SHOULD NOT BE CONDUCTED AT THE EXPENSE OF CIVIL LIBERTIES A PRECEDENT SHOULD NOT BE SET THAT GIVES THE PRYING EYES OF GOVERNMENT UNFETTERED ACCESS TO THE DIARIES WE ALL KEEP MS GOLDMAN IS DIRECTOR OF THE AMERICAN CIVIL LIBERTIES UNION'S PRIVACY AND TECHNOLOGY PROJECT 9311100153 931110 WHO'S NEWS MYLAN NAMES MILAN PUSKAR CHAIRMAN CEO BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH MYLAN LABORATORIES INC NAMED MILAN PUSKAR 58 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR PUSKAR WHO WILL REMAIN PRESIDENT SUCCEEDS ROY MCKNIGHT 72 WHO DIED SATURDAY OF A HEART ATTACK WHILE VACATIONING IN MIAMI BEACH FLA MR PUSKAR'S APPOINTMENT COMES AMID TAKEOVER SPECULATION WHICH HAS HELPED PROPEL THE PHARMACEUTICAL COMPANY'S STOCK SINCE MR MCKNIGHT INDICATED LAST MONTH THAT A HALFDOZEN COMPANIES HAD APPROACHED MYLAN ABOUT VARIOUS ARRANGEMENTS BUT AN OUTRIGHT TAKEOVER ISN'T EXPECTED IN THE IMMEDIATE FUTURE ANALYSTS SAY EVERYBODY'S TALKING TO EVERYBODY IN THE DRUG INDUSTRY SAID JERRY TREPPEL WITH KIDDER PEABODY I'M MORE WILLING TO BELIEVE IN A STRATEGIC ALLIANCE THAN AN OUTRIGHT PURCHASE MYLAN'S STOCK FELL 875 CENTS A SHARE TO 3175 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY IT ROSE 250 MONDAY ON THE RENEWED TAKEOVER SPECULATION FOLLOWING MR MCKNIGHT'S DEATH MR MCKNIGHT'S STAKE IN MYLAN WAS ABOUT 26 OF THE COMPANY'S SOME 80 MILLION SHARES OF COMMON STOCK OUTSTANDING GIVING A POTENTIAL BUYER ONLY A SMALL FOOTHOLD IF HIS SHARES WERE SOLD SUBSTANTIAL CHANGES AREN'T EXPECTED AT MYLAN BECAUSE MR PUSKAR IS A CONTINUATION OF PRESENT MANAGEMENT SAID STEVEN GERBER AN OPPENHEIMER & CO ANALYST THE EXECUTIVE HELPED FOUND MYLAN IN 1961 THEN WORKED AT ICN PHARMACEUTICAL CORP WHICH IS BASED IN COSTA MESA CALIF AND AT ELAN CORP AN DRUG DELIVERY CORPORATION BASED IN IRELAND HE REJOINED MYLAN IN 1976 TO HELP MR MCKNIGHT TURN AROUND THE THENTROUBLED SMALL COMPANY RECENTLY MYLAN HAS PROSPERED WITH THE POPULARITY OF ITS GENERIC DRUGS SUCH AS ITS EQUIVALENT TO SMITHKLINE BEECHAM PLC'S TAGAMET ULCER DRUG LAST WEEK TWO NEW MYLAN GENERIC PRODUCTS WERE APPROVED BY THE FOOD AND DRUG ADMINISTRATION FOR TREATING ANGINA AND HYPERTENSION NO ONE WILL SUCCEED MR PUSKAR AS VICE CHAIRMAN IMMEDIATELY CB TODD 59 PRESIDENT OF THE COMPANY'S MYLAN PHARMACEUTICALS UNIT WAS NAMED TO JOIN THE SEVENMEMBER BOARD 9311100152 931110 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 BELL SPORTS CORP 75 MILLION OF 425 CONVERTIBLE SUBORDINATED DEBENTURES PRICED AT PAR ACCORDING TO THE COMPANY THE DEBENTURES ARE CONVERTIBLE INTO COMMON STOCK AT ANY TIME PRIOR TO MATURITY AT A CONVERSION PRICE OF 5406 A SHARE THE DEBENTURES ARE REDEEMABLE AT ANY TIME ON OR AFTER NOV 15 1996 AT SPECIFIED REDEMPTION PRICES THE DEBENTURES ARE DUE NOV 15 2000 MONTGOMERY SECURITIES AND WILLIAM BLAIR & CO ARE UNDERWRITING THE OFFERING CASINO AMERICA INC 105 MILLION OF FIRST MORTGAGE NOTES DUE NOV 15 2001 PRICED AT PAR TO YIELD 115 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FOUR YEARS THE DEAL INCLUDES WARRANTS FOR 3 OF THE COMPANY'S STOCK RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC COCACOLA BOTTLING GROUP SW INC 140 MILLION OF SENIOR SUBORDINATED NOTES DUE NOV 15 2003 PRICED MONDAY AT PAR TO YIELD 9 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES MARKETS INC FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF FIVEYEAR DEBENTURES CALLABLE AFTER THREE YEARS AT PAR PRICED TO YIELD 518 THE DEBENTURES DATED NOV 18 PAY INTEREST SEMIANNUALLY ON MAY 18 AND NOV 18 BEGINNING IN 1994 THE DEBENTURES ARE DUE NOV 18 1998 AND ARE CALLABLE AT PAR ON OR AFTER NOV 18 1996 THE DEBENTURES WILL BE SOLD BY FREDDIE MAC'S 40MEMBER DEBENTUREDEALER GROUP AND WILL BE AVAILABLE IN BOOKENTRY FORM ONLY THROUGH THE FEDERAL RESERVE BANK SYSTEM IN MINIMUM PRINCIPAL AMOUNTS OF 5000 AND ADDITIONAL INCREMENTS OF 5000 THE FEDERAL RESERVE BANK OF NEW YORK WILL ACT AS FISCAL AGENT FOR THE DEBENTURES LEHMAN BROTHERS INC 200 MILLION OF SENIOR SUBORDINATED NOTES DUE NOV 15 1998 PRICED AS 575S AT 99798 TO YIELD 5797 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 85 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS LEHMAN IS A UNIT OF AMERICAN EXPRESS CO LONG ISLAND LIGHTING CO 100 MILLION OF TAXEXEMPT BONDS SOLD IN TWO 50 MILLION SERIES WITH A 30YEAR MATURITY ACCORDING TO THE COMPANY ONE SERIES HAS AN INITIAL WEEKLY ADJUSTABLE INTEREST RATE THE SECOND HAS AN INITIAL ANNUAL ADJUSTABLE INTEREST RATE THE BONDS ARE ISSUED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY THE COMPANY SAID IT MAY AT A LATER DATE ELECT DIFFERENT INTERESTRATE METHODS OR CONVERT THE BONDS TO A FIXED INTEREST RATE METHANEX CORP 275 MILLION OF SENIOR SECURED SECONDPRIORITY NOTES DUE NOV 15 2001 PRICED AS 8875S AT 99298 TO YIELD 9 THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED BA3 BY MOODY'S AND DOUBLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC NAVISTAR FINANCIAL CORP 100 MILLION OF SENIOR SUBORDINATED NOTES DUE NOV 15 1998 PRICED AT PAR TO YIELD 8875 ACCORDING TO MCM CORPORATEWATCH RATED SINGLEB2 BY MOODY'S AND SINGLEBPLUS BY S&P THE NONCALLABLE NOTES WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC NAVISTAR FINANCIAL IS A UNIT OF NAVISTAR INTERNATIONAL CORP SBS HOLDINGS INC 150 MILLION OF NOTES DUE NOV 15 1998 PRICED AS 5625S AT 99797 TO YIELD 5672 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC TEXAS BOTTLING GROUP INC 125 MILLION OF SENIOR SUBORDINATED NOTES DUE NOV 15 2003 PRICED MONDAY AT PAR TO YIELD 9 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES MARKETS INC U S WEST COMMUNICATIONS INC 400 MILLION TWOPART DEBT ISSUE PRICED BY UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 150 MILLION OF NOTES DUE NOV 15 2005 WAS PRICED AS 6125S AT 99873 TO YIELD 614 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 250 MILLION OF DEBENTURES DUE NOV 15 2043 WAS PRICED AS 7125S AT 99269 TO YIELD 7179 THE DEBENTURES NONCALLABLE FOR 20 YEARS WERE PRICED AT A SPREAD OF 85 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P U S WEST COMMUNICATIONS IS A UNIT OF U S WEST INC WMC FINANCE 400 MILLION TWOPART DEBT ISSUE PRICED BY UNDERWRITERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE DEBT IS GUARANTEED BY WESTERN MINING CORP HOLDINGS LTD THE FIRST TRANCHE 250 MILLION OF NOTES DUE NOV 15 2003 WAS PRICED AS 65S AT 99781 TO YIELD 653 THE DEBT WAS PRICED AT A SPREAD OF 90 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 150 MILLION OF DEBENTURES DUE NOV 15 2013 WAS PRICED AS 725 AT 9968 TO YIELD 7281 THE DEBT WAS PRICED AT A SPREAD OF 93 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE NONCALLABLE AND ARE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P ZENECA WILMINGTON INC 300 MILLION OF GUARANTEED DEBENTURES DUE NOV 15 2023 PRICED AS 7S AT 99095 TO YIELD 7073 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 74 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO ZENECA IS A UNIT OF ZENECA GROUP PLC MERRY LAND & INVESTMENT CO FIVE MILLION COMMON SHARES PRICED AT 20 APIECE THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS PURUS INC INITIAL PUBLIC OFFERING OF 18 MILLION SHARES PRICED AT 14 APIECE THROUGH AN UNDERWRITING GROUP MANAGED BY OPPENHEIMER & CO AND ROBERTSON STEPHENS & CO U S WEST INC 22 MILLION COMMON SHARES PRICED AT 4750 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO CALIFORNIA POLLUTION CONTROL FINANCING AUTHORITY 200 MILLION 1993 SERIES B POLLUTIONCONTROL REVENUE BONDS FOR PACIFIC GAS & ELECTRIC CO PRICED BY A GOLDMAN SACHS & CO GROUP THE BONDS ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX THE BONDS ARE 585S PRICED AT 993 TO YIELD 59 ON DEC 1 2023 MOODY'S IS EXPECTED TO ASSIGN A SINGLEA1 RATING AND S&P IS EXPECTED TO ASSIGN A SINGLEA RATING NEW YORK CITY MUNICIPAL WATER FINANCE AUTHORITY 825 MILLION FISCAL 1994 SERIES B WATER AND SEWERSYSTEM REVENUE REFUNDING BONDS PRICED BY A SMITH BARNEY SHEARSON INC GROUP YIELDS FOR THE STANDARD SERIAL BONDS AND TERM BONDS RANGE FROM 475 IN 2000 TO 573 IN 2019 MOST OF THE BONDS HAVE BEEN RATED SINGLEA BY MOODY'S SINGLEAMINUS BY S&P AND SINGLEA BY FITCH INVESTORS SERVICE INC THERE ARE 35 MILLION OF CURRENTINTEREST BONDS DUE IN 2019 THAT ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND 50 MILLION OF CURRENTINTEREST BONDS DUE IN 2019 THAT ARE INSURED BY AMBAC INDEMNITY CORP AALL THE INSURED BONDS CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THIS ISSUE ALSO INCLUDES 167 MILLION OF AUCTION AND INVERSE RATE SECURITIES WHICH HAVE FINAL MATURITIES IN 2008 2009 AND 2013 THE SECURITIES AREN'T FORMALLY REOFFERED TO INVESTORS CHRYSLER CORP 15 BILLION OF AUTOLOAN ASSETBACKED CERTIFICATES PRICED IN FOUR CLASSES BY UNDERWRITERS LED BY SALOMON BROTHERS INC THE ISSUE PREMIER AUTO TRUST 19936 WAS BACKED BY AUTO AND LIGHTTRUCK RECEIVABLES ORIGINATED BY CHRYSLER FINANCIAL CORP A CHRYSLER UNIT THE 325 MILLION IN CLASS A1 CERTIFICATES WERE PRICED AS 348S AT PAR FOR A BONDEQUIVALENT YIELD OF 3506 THE CERTIFICATES HAVE A 05YEAR AVERAGE LIFE AND WERE GIVEN THE TOP SHORTTERM RATINGS BY DUFF & PHELPS CO FITCH INVESTORS SERVICE INC MOODY'S AND S&P THE 865 MILLION IN CLASS A2 CERTIFICATES WERE PRICED AS 465S AT 999375 TO YIELD 4725 A 63BASISPOINT SPREAD ABOVE THE TREASURY'S TWOYEAR NOTE THE CERTIFICATES RATED TRIPLEA BY THE FOUR AGENCIES HAVE AN AVERAGE LIFE OF 23 YEARS THE 250 MILLION IN CLASS A3 CERTIFICATES WERE PRICED WITH AN INITIAL COUPON OF 33875 AT PAR TO FLOAT 20 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE THE CERTIFICATES RATED TRIPLEA BY THE FOUR AGENCIES HAVE AN AVERAGE LIFE OF 23 YEARS THE 60 MILLION IN CLASS B CERTIFICATES WERE PRICED AS 4875S AT 9984375 TO YIELD 4997 A 90BASISPOINT SPREAD ABOVE THE TREASURY'S TWOYEAR NOTE THE CERTIFICATES RATED SINGLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P HAVE AN AVERAGE LIFE OF 24 YEARS HOUSEHOLD FINANCE CORP 105 BILLION TWOPART ISSUE OF ASSETBACKED CERTIFICATES BACKED BY GENERAL MOTORS CORP CREDITCARD RECEIVABLES AND LED BY CS FIRST BOSTON INC ACCORDING TO MCM CORPORATEWATCH THE FIRST ISSUE HOUSEHOLD AFFINITY CREDIT CARD MASTER TRUST I 19932 CONSISTS OF TWO PARTS THE 500 MILLION IN CLASS A SENIOR FIXEDRATE CERTIFICATES WERE PRICED AS 56S AT 999375 TO YIELD 5675 A 50BASISPOINT SPREAD ABOVE THE TREASURY'S 55 NOTE OF APRIL 2000 THE CERTIFICATES HAVE AN AVERAGE LIFE OF 654 YEARS AND WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE 294 MILLION IN CLASS B SUBORDINATE FIXEDRATE CERTIFICATES WERE PRICED AS 59S AT 998125 TO YIELD 6004 A 65BASISPOINT YIELD ABOVE THE TREASURY'S 85 NOTE OF NOVEMBER 2000 THE CERTIFICATES HAVE AN AVERAGE LIFE OF 708 YEARS AND WERE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE SECOND ISSUE HOUSEHOLD AFFINITY CREDIT CARD MASTER TRUST I 19933 ALSO CONSISTS OF TWO PARTS THE 500 MILLION IN CLASS A SENIOR FLOATINGRATE CERTIFICATES WERE PRICED AT PAR TO FLOAT 17 BASIS POINTS ABOVE THE ONE MONTH LIBOR OR 33575 THE NOTES CAN FLOAT TO A 11 CAP THE CERTIFICATES HAVE AN AVERAGE LIFE OF 304 YEARS AND WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE 294 MILLION IN SUBORDINATE CLASS B FIXEDRATE CERTIFICATES WERE PRICED AS 495S AT 9990625 TO YIELD 5029 A 60BASISPOINT SPREAD ABOVE THE TREASURY'S WHENISSUED THREEYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 325 YEARS AND WERE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P HOUSEHOLD FINANCE IS A UNIT OF HOUSEHOLD INTERNATIONAL INC BA T CAPITAL CORP UK PARENT 500 MILLION OF 65 EUROBONDS DUE NOV 24 2003 AT ISSUE AND REOFFER PRICE 9987 VIA CREDIT SUISSE FIRST BOSTON LTD AND GOLDMAN SACHS INTERNATIONAL LTD BONDS YIELD 652 A MARGIN OF 75 BASIS POINTS OVER COMPARABLE US TREASURY GUARANTOR BRITISH AMERICAN TOBACCO INDUSTRIES PLC FEES TWO DAIWA INDUSTRIES LTD JAPAN 50 MILLION OF 1125 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE DEC 2 1997 AT ISSUE PRICE PAR VIA DAIWA EUROPE LTD GUARANTOR SAKURA BANK WARRANTS EXERCISABLE TO PURCHASE SHARES IN COMPANY AT INDICATED PREMIUM 25 FROM DEC 16 TO NOV 18 1997 YESTERDAY'S CLOSING SHARE PRICE 1350 YEN TERMS TO BE FIXED MONDAY FEES 225 LESS 015 DEDUCTED FOR LEAD MANAGER CAISSE CENTRALE DU CREDIT IMMOBILIARE FRANCE 300 MILLION MARKS OF 65 EUROBONDS DUE DEC 8 2003 AT ISSUE PRICE 10165 VIA MORGAN STANLEY GMBH REOFFERED AT 99 TO YIELD 664 A SPREAD OF 75 BASIS POINTS ABOVE COMPARABLE GERMAN BUND FEES 25 CARDIFF AUTOMOBILE RECEIVABLES SECURITIZATION UK NO 3 PLC SPECIALPURPOSE VEHICLE 180 MILLION OF ASSETBACKED FLOATINGRATE EURONOTES DUE NOVEMBER 1998 AT ISSUE PRICE PAR VIA GOLDMAN SACHS INTERNATIONAL LTD BONDS SECURED ON CAR LOANS ORIGINATED AND HELD BY CHARTERED TRUST A UNIT OF STANDARD CHARTERED EXPECTED AVERAGE LIFE 42 YEARS REOFFERED AT 9992 PAYABLE QUARTERLY AT THREEMONTH POUND LIBOR PLUS 325 BASIS POINTS FEES 033 DEPFA FINANCE AMSTERDAM NV GERMAN PARENT THREE BILLION FRENCH FRANCS OF 625 EUROBONDS DUE DEC 8 2003 AT ISSUE AND REOFFER PRICE 99348 VIA BNP CAPITAL MARKETS LTD AND SOCIETE DE BANQUE SUISSE FRANCE BOND YIELD 634 A SPREAD OF 25 BASIS POINTS ABOVE 675 FRENCH TREASURY OF 2003 GUARANTOR DEUTSCHE PFANDBRIEF UND HYPOTHEKENBANK AG FEES 0325 DEUTSCHE BANK FINANCE NV GERMAN PARENT 20 BILLION YEN OF 3 EUROBONDS DUE DEC 15 1998 AT ISSUE PRICE 101875 VIA SANWA INTERNATIONAL PLC REOFFERED AT 10025 TO YIELD 295 GUARANTOR DEUTSCHE BANK AG FEES 1875 PENTAOCEAN CONSTRUCTION CO JAPAN 20 BILLION YEN OF 125 CONVERTIBLE EUROBONDS DUE MARCH 31 1999 AT ISSUE PRICE PAR VIA YAMAICHI INTERNATIONAL EUROPE LTD BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM 25 FROM DEC 9 TO MARCH 24 1999 YESTERDAY'S CLOSING SHARE PRICE 612 YEN TERMS FIXED BY NOV 18 BONDS CALLABLE FROM OCT 1 1994 AT 10225 DECLINING BY 025 POINT ANNUALLY TO 10025 ON OCT 1 1998 SUBJECT TO SHARE PRICE BEING AT LEAST 125 OF CONVERSION PRICE FEES 25 LESS 035 DEDUCTED FOR LEAD MANAGER PETROLEOS MEXICANOS MEXICO C100 MILLION OF 7875 EUROBONDS DUE MARCH 2 1999 AT ISSUE PRICE 100825 VIA DEUTSCHE BANK AG LONDON REOFFERED AT 997 TO YIELD 793 A SPREAD OF 195 BASIS POINTS ABOVE CANADIAN GOVERNMENT BOND OF SEPTEMBER 1998 FEES 1875 VIENNA AUSTRIAN MUNICIPALITY 100 MILLION SWISS FRANCS OF 4 PUBLIC BONDS DUE JAN 27 1999 PRICED AT 10225 VIA CREDIT SUISSE FEES TWO WGZ INTERNATIONAL FINANCE NV GERMAN PARENT 100 MILLION MARKS OF 575 EUROBONDS DUE NOV 15 1999 AT ISSUE PRICE 101 VIA PARENT AND GUARANTOR WESTDEUTSCHE GENOSSENSCHAFTS ZENTRALBANK EG FEES UNDISCLOSED 9311100151 931110 TECHNOLOGY ORDERS FOR SEMICONDUCTORS DIPPED SLIGHTLY IN OCTOBER SAN JOSE CALIF SEMICONDUCTOR ORDERS CONSTRAINED BY A SEASONAL SLOWDOWN DIPPED SLIGHTLY IN OCTOBER BUT REMAINED STRONG IN COMPARISON WITH PAST YEARS THE SEMICONDUCTOR INDUSTRY ASSOCIATION SAID ITS BOOKTOBILL RATIO FOR OCTOBER STOOD AT 100 DOWN FROM 101 IN SEPTEMBER THE RATIO INDICATES THAT FOR EVERY 100 IN CHIPS SHIPPED THE INDUSTRY GOT 100 OF ORDERS THE FIGURE PEAKED AT 120 IN JANUARY A YEAR AGO IT WAS 111 ANGELA NEWLOVE A SPOKESWOMAN FOR THE ASSOCIATION SAID THAT WHILE THE BOOKTOBILL RATIO IS OFF SHARPLY FROM LAST YEAR OCTOBER IS TYPICALLY SO SLOW THAT THE RATIO HAS EXCEEDED 100 ONLY THREE TIMES IN THE PAST 13 YEARS ANALYSTS SAID SEPTEMBER HAD FALLEN OFF STEEPLY FROM AUGUST'S ROBUST 108 LEVEL IN PART BECAUSE OF A JULY EXPLOSION AT A KEY MATERIALS SUPPLIER IN JAPAN AND BECAUSE OF A SHORTAGE OF MANUFACTURING CAPACITY AT SOME CHIP MAKERS 9311100150 931110 DIVIDEND NEWS DERLAN INDUSTRIES LTD DERLAN INDUSTRIES LTD TORONTO SAID IT CUT ITS QUARTERLY DIVIDEND RATE IN HALF TO 35 CANADIAN CENTS 27 US CENTS OFFICIALS OF THE INDUSTRIAL CONCERN SAID THE COMMONSHARE DIVIDEND WAS CUT IN ORDER TO BRING IT INTO LINE WITH THE COMPANY'S CURRENT EARNINGS LEVEL THE NEXT QUARTERLY DIVIDEND WILL BE PAID DEC 1 TO STOCK OF RECORD NOV 21 9311100149 931110 METROCALL PRONET CALL OFF DISCUSSIONS ON A MERGER ALEXANDRIA VA TWO PAGING COMPANIES METROCALL INC OF ALEXANDRIA VA AND PRONET INC OF PLANO TEXAS SAID THEY CALLED OFF PREVIOUSLY ANNOUNCED MERGER TALKS THE COMPANIES DECLINED TO SAY WHY THEY ENDED PRELIMINARY DISCUSSIONS BEGUN LAST MONTH BUT BOTH COMPANIES SAID THEY EXPECT TO STAY ON TRACK WITH SEPARATE PLANS TO GROW THROUGH ACQUISITIONS PRONET WHICH SPECIALIZES IN PAGING FOR THE MEDICAL COMMUNITY SAID IT PLANS TO ENTER THE BROADER PAGING MARKET AFTER THE EXPECTED COMPLATION IN JANUARY OF ITS PLANNED ACQUISITION OF CONTACT COMMUNICATIONS INC A NEW YORK RADIO COMMON CARRIER ANALYST CRAIG ELLIS OF WHEAT FIRST SECURITIES INC OF RICHMOND VA ONE OF METROCALL'S INVESTMENT BANKERS SAID HE ADVISED CLIENTS THAT METROCALL WILL BENEFIT FROM THE DECISION TO CALL OFF THE MERGER WITH THE SPECIALIZED PRONET AND PURSUE BROADER PAGING COMPANIES IN NASDAQ STOCK MARKET TRADING SHARES OF METROCALL WHICH WENT PUBLIC IN JULY AT 13 A SHARE ROSE 2 TO CLOSE AT 2175 A SHARE PRONET'S STOCK FELL 125 TO 1375 A SHARE ON MORE THAN TWICE AVERAGE VOLUME 9311100148 931110 CORPORATE FOCUS NEXTEL'S DEAL WITH MOTOROLA ADVANCES WIRELESS VISION DISPATCH CONCERN FACES TOUGH HURDLES ON COST TECHNOLOGY AND MARKETING BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NEXTEL COMMUNICATIONS INC'S ACQUISITION OF MOTOROLA INC'S RADIO DISPATCH PROPERTIES FOR ABOUT 18 BILLION IS A MAJOR STEP IN ITS DRIVE TO SET UP A VAST WIRELESS NETWORK TO COMPETE WITH CELLULAR PHONE SERVICE BUT NEXTEL WILL HAVE TO VAULT SIGNIFICANT HURDLES ON COST TECHNOLOGY AND MARKETING BEFORE IT CAN DELIVER ON THAT PROMISE AND MEET HYPED EXPECTATIONS ON WALL STREET WHICH HAS SENT THE COMPANY'S STOCK PRICE SOARING IN RECENT MONTHS NEXTEL AND TWO OTHER COMPANIES DIAL PAGE INC AND CENCALL COMMUNICATIONS INC HAVE BET BILLIONS OF DOLLARS IN THE PAST MONTH THAT THEY CAN TURN A TECHNOLOGICAL BACKWATER RADIO DISPATCH SERVICES FOR CAB COMPANIES AND THE LIKE INTO A WIRELESS PHONE NETWORK THE BUYING BINGE HAS BEEN FUNDED LARGELY BY THE SHARP RISE IN THE THREE COMPANIES' STOCK VALUE UP SOME 37 BILLION COMBINED SINCE JANUARY AND RISING AN ADDITIONAL 155 MILLION YESTERDAY IN NASDAQ STOCK MARKET TRADING YESTERDAY NEXTEL SHARES JUMPED 125 OR 27 TO 4725 WHILE NEXTEL AND ITS TWO COLLEAGUES WERE ABLE TO USE STOCK TO BUY A SPATE OF DISPATCH SYSTEMS AND RADIO LICENSES THEY WILL HAVE TO USE HARD CASH TO REBUILD THE SYSTEMS INTO HIGHTECH FULLY DIGITAL NETWORKS THEY HAVE BARELY LAID THE FOUNDATION FOR A NATIONWIDE INFRASTRUCTURE WHICH COULD COST AS MUCH AS 10 BILLION A HUGE AMOUNT OF MONEY IS REQUIRED AND IT ISN'T A FOREGONE CONCLUSION THAT WE CAN RAISE IT CONCEDES THOMAS GRINA CHIEF FINANCIAL OFFICER OF DIAL PAGE BUT WE'RE OPTIMISTIC HERSCHEL SHOSTECK A WIRELESS INDUSTRY ANALYST ADDS IT'S AS IF THESE DISPATCH COMPANIES OWN THE AIRLINE BUT STILL HAVE TO BUILD THE AIRPORTS STILL NEXTEL'S PLAN TO ACQUIRE 2500 RADIO FREQUENCIES HELD BY MOTOROLA FOR DISPATCH SYSTEMS IN 21 STATES IS THE LARGEST SINGLE ACQUISITION BY A MOBILERADIO COMPANY SO FAR IT'S THE MOTHER LODE OF ACQUISITIONS SAYS MORGAN O'BRIEN NEXTEL'S CHAIRMAN HE NOTES NEXTEL NOW HAS THE RIGHT TO PROVIDE WIRELESS SERVICES TO A POTENTIAL AUDIENCE OF 180 MILLION PEOPLE CONSIDERABLY HIGHER THAN THE POTENTIAL CUSTOMER BASE OF MCCAW CELLULAR COMMUNICATIONS INC THE LARGEST CELLULAR COMPANY IN THE PAST MONTH NEXTEL HAS REACHED AGREEMENTS TO PAY AN ADDITIONAL 118 BILLION IN STOCK FOR VARIOUS OTHER DISPATCH PROPERTIES AND DIAL PAGE AND CENCALL AGREED TO PAY A COMBINED TOTAL OF 12 BILLION IN THEIR SEPARATE STOCKS TO BUY OTHER MOTOROLA SYSTEMS THE TRIO OF COMPANIES AT THE TOP OF THE SPECIALIZED MOBILERADIO INDUSTRY WHICH HAS ANNUAL REVENUE OF 340 MILLION WILL TAKE AIM AT CELLULAR SERVICE BY SELLING MOTOROLADESIGNED GADGETS THAT WORK LIKE PHONES AND ALSO TRANSMIT DATA AND DISPATCH SERVICES RADIO TOWERS ACROSS THE COUNTRY WILL BOUNCE DIGITAL VOICE AND DATA SIGNALS OVER THE AIRWAVES NEXTEL AND COMPANY SAY THEY CAN BUILD A COASTTOCOAST WIRELESS SYSTEM BY THE END OF 1996 NOTING THAT THE DISPATCHERS MUST TAKE ON FAR BIGGER AND MORE ENTRENCHED CELLULAR COMPANIES AND A SECOND RIVAL FUTURE PROVIDERS OF PERSONAL COMMUNICATIONS SERVICES NETWORKS NEXTEL'S MR O'BRIEN SAYS THERE ARE THREE HORSES AT THE STARTING GATE WHO WANT TO GET TO THE FINISHING LINE I WANT TO WIN THAT RACE TO FUND THAT EFFORT NEXTEL ALSO ARRANGED TO RECEIVE 260 MILLION IN FINANCING FROM MOTOROLA AS PART OF THE PACT ANNOUNCED YESTERDAY THAT RAISES NEXTEL'S FINANCING TOTAL TO MORE THAN 500 MILLION ALTHOUGH THAT IS A FRACTION OF THE ULTIMATE COST OF BUILDING THE NATIONWIDE WIRELESS NETWORK MR O'BRIEN ENVISIONS YESTERDAY NEXTEL ALSO SAYS IT WILL PAY JAPAN'S NIPPON TELEGRAPH & TELEPHONE CORP ABOUT 75 MILLION IN NEXTEL'S MUCHAPPRECIATED SHARES TO PROVIDE KEY SIGNALING AND NETWORK TECHNOLOGIES FOR A NATIONWIDE SYSTEM NEXTEL ALSO HAS THE BACKING OF CABLE OPERATOR COMCAST CORP WHICH OWNS A 30 STAKE IN THE DISPATCHER AND MOTOROLA WHICH WILL OWN A 20 STAKE IN NEXTEL AFTER THE LATEST TRANSACTION MANY HAD FEARED MOTOROLA WOULD COMPETE HEADTOHEAD WITH NEXTEL AND OTHERS BY LAUNCHING ITS OWN DIGITAL SYSTEM SAYS ALAN SHARK OF AMERICAN MOBILE TELECOMMUNICATIONS ASSOCIATION INSTEAD MOTOROLA CHOSE TO SELL ITS RADIO LICENSES TO CONCENTRATE ON TECHNOLOGY AND EQUIPMENT THE MOTOROLANEXTEL AGREEMENT TAKES AN UNCERTAIN COURTSHIP AND TURNS IT INTO A SOLID MARRIAGE MR SHARK SAYS EVEN SOLID MARRIAGES CAN EVENTUALLY BREAK UP MOTOROLA FOR INSTANCE COULD END UP RECEIVING FAR LESS THAN 18 BILLION FOR THE SYSTEMS IT WILL SELL TO NEXTEL SHOULD NEXTEL'S SHARE PRICE FALL AS SOME SHORT SELLERS HAVE BEEN PREDICTING THE 18 BILLION IS BASED ON THE AVERAGE NEXTEL STOCK PRICE IN THE PAST 10 DAYS OR SO IN THE LONG RUN MOREOVER THE DISPATCH TRIO FACES THE UNENVIABLE TASK OF TRYING TO OVERCOME THE FAR BIGGER CELLULAR INDUSTRY WITH ANNUAL REVENUE APPROACHING 9 BILLION 26 TIMES LARGER THAN THE SPECIALIZED MOBILERADIO BUSINESS CELLULAR OPERATORS HAVE A 10YEAR HEAD START MARKETING SAVVY AND THEIR OWN PLANS TO GO DIGITAL GTE CORP OF STAMFORD CONN THE SECONDLARGEST CELLULAR PROVIDER ACKNOWLEDGES THAT THE NEW WIRELESS CONTENDERS AREN'T A FLASH IN THE PAN GTE TOO IS GUNNING TO SELL WIRELESS SERVICES TO CORPORATE CLIENTS WITH LARGE SALES FORCES SAYS THE COMPANY'S COMMUNICATIONS DIRECTOR JEFFERY KELLER ANALYSTS SUGGEST THAT NEXTEL AND OTHERS WILL FIND IT HARD TO BREAK THROUGH UNLESS THEY LOWER HANDSET PRICES OR OFFER DISCOUNTS ON SERVICES MARKETING THE NEWFANGLED SERVICES COULD PROVE TO BE AN EVEN HIGHER HURDLE THAN ATTRACTING FINANCING OR DEPLOYING THE TECHNOLOGY INITIALLY MOBILERADIO FIRMS PLAN TO PURSUE THEIR CURRENT BASE OF CUSTOMERS INCLUDING TRUCKING FIRMS PLUMBERS AND TAXI DISPATCHERS TO MAKE THEIR MULTIBILLIONDOLLAR INVESTMENTS PAY OFF NEXTEL AND OTHER DISPATCH FIRMS EVENTUALLY MUST LURE LUCRATIVE BUYERS SUCH AS CORPORATIONS AND HOUSEHOLD CUSTOMERS SAYS BARRY GOODSTADT ANALYST AT ARTHUR D LITTLE & CO THAT WON'T BE AN EASY SELL IN PART BECAUSE SOME OF THE MOST LIKELY TARGETS HAVE ALREADY ADOPTED RIVAL WIRELESS SERVICES UNITED PARCEL SERVICE THE BIG ATLANTA PACKAGE DELIVERY SERVICE WOULD SEEM AN IDEAL CUSTOMER IT NEEDS TO STAY IN CONSTANT TOUCH WITH ALMOST 50000 DELIVERY TRUCKS ON ANY GIVEN DAY BUT WHILE THE COMPANY CONFIRMS IT HAS OPENED A DIALOGUE WITH NEXTEL IT ISN'T READY TO BUY INTO THE DIGITAL SYSTEMS EVEN IF THEY WERE AVAILABLE TODAY WE'VE SPENT 100 MILLION OVER THE PAST TWO YEARS INSTALLING OUR CURRENT VEHICLE COMMUNICATIONS SYSTEMS SAYS DOUGLAS FIELDS VICE PRESIDENT OF TELECOMMUNICATIONS AM I READY TO SCRAP THIS INVESTMENT IN FAVOR OF SOMETHING NEW IT WOULD HAVE TO BE PRETTY COMPELLING NEXTEL THE ONLY MOBILERADIO COMPANY TO TURN ON A DIGITAL SYSTEM IN ANY MARKET ACKNOWLEDGES IT IS STILL TWEAKING ITS LOS ANGELES SYSTEM IN ORDER TO IRON OUT SOFTWARE AND OTHER BUGS IT PLANS TO OFFER DIGITAL SERVICE TO THE REST OF CALIFORNIA IN THE FIRST HALF OF 1994 AND BRING NEW YORK AND CHICAGO ON LINE BY MIDYEAR NIPPON TELEGRAPH & TELEPHONE CORP WILL BUY 15 MILLION SHARES OF NEXTEL COMMUNICATIONS INC FOR 75 MILLION YESTERDAY'S CORPORATE FOCUS ARTICLE INCORRECTLY SAID NEXTEL WILL PAY NIPPON TELEGRAPH 75 MILLION ALSO COMCAST CORP HOLDS A 134 STAKE IN NEXTEL THAT COULD BE INCREASED TO 30 IF COMCAST EXERCISES CERTAIN STOCK OPTIONS AND OTHER RIGHTS THE ARTICLE INCORRECTLY SAID COMCAST HAD A 30 STAKE IN NEXTEL 9311100147 931110 POLITICS & POLICY REFORM OF PAYTOPLAY SYSTEM IS UNLIKELY TO KEEP BOND HOUSES' MONEY OUT OF CAMPAIGN COFFERS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL KATHLEEN BROWN AND MARY LANDRIEU HAVE A LOT IN COMMON BOTH ARE DEMOCRATIC STATE TREASURERS MS BROWN IN CALIFORNIA AND MS LANDRIEU IN LOUISIANA BOTH WERE INTRODUCED TO POLITICS BY FAMOUS FATHERS FORMER CALIFORNIA GOV PAT BROWN AND FORMER NEW ORLEANS MAYOR MOON LANDRIEU BUT WHEN IT COMES TO ACCEPTING CONTRIBUTIONS FROM THE MUNICIPALBOND INDUSTRY A STAPLE OF CAMPAIGN FINANCING FOR STATE AND LOCAL ELECTIONS THE TWO WOMEN DIFFER SHARPLY MS BROWN A LIKELY CANDIDATE FOR GOVERNOR NEXT YEAR SAYS SHE IS SO CONCERNED WITH THE ETHICAL ISSUES RAISED BY ACCEPTING SUCH CONTRIBUTIONS THAT SHE WON'T DO SO ANY LONGER MS LANDRIEU THOUGH SAYS THAT'S ESSENTIALLY AN EMPTY GESTURE ONE SHE DOESN'T INTEND TO EMULATE I DON'T KNOW HOW YOU ARGUE WHAT GROUPS SHOULD BE LIMITED IN CONTRIBUTING AND WHAT GROUPS SHOULDN'T BE SHE SAYS MS BROWN'S DECISION TO TURN AWAY WALL STREET CONTRIBUTORS WOULD HAVE BEEN MORE MEANINGFUL AND MORE EFFECTIVE IF SHE HAD SAID SHE WOULDN'T TAKE CAMPAIGN CONTRIBUTIONS FROM ANYONE WHO DOES BUSINESS WITH THE STATE INCLUDING BANKS ACCOUNTANTS AND ENGINEERS THE DISAGREEMENT BETWEEN THE TWO TREASURERS REFLECTS A BROADER DEBATE OVER HOW AND WHETHER TO LIMIT THE POLITICAL ACTIVITIES OF THE FIRMS THAT UNDERWRITE BONDS FOR SCHOOLS HIGHWAYS AND OTHER STATE AND LOCAL PROJECTS THE BANDWAGON TO REFORM THE SOCALLED PAYTOPLAY SYSTEM IS CLEARLY ROLLING BUT WHILE THE CHANGES BEING CONSIDERED MAY ENHANCE THE PERCEPTION OF PROPRIETY MANY DOUBT IT WILL HAVE MUCH EFFECT ON THE UNDERLYING REALITY ESPECIALLY GIVEN THE SPOTTINESS OF DISCLOSURE REQUIREMENTS AND THE SKILL OF POLITICIANS AND DONORS ALIKE IN EVADING CAMPAIGNFINANCE RULES CONTRIBUTIONS PARTICULARLY THOSE FROM DETERMINED DONORS ARE VERY DIFFICULT TO POLICE OBSERVES FRED MEYER CHAIRMAN OF THE TEXAS REPUBLICAN PARTY BARRED FROM MAKING A DIRECT CONTRIBUTION YOU CAN GO THROUGH YOUR LAWYERS YOU CAN GO THROUGH YOUR PR FIRM YOU CAN GO THROUGH WIVES HE SAYS IT IS NOT A GOOD SITUATION THIS WEEK THE QUASIGOVERNMENTAL MUNICIPAL SECURITIES RULEMAKING BOARD IS EXPECTED TO PROPOSE PROHIBITING SECURITIES FIRMS FROM MAKING ANY CAMPAIGN CONTRIBUTIONS THAT WOULD APPEAR TO INFLUENCE THE AWARDING OF BOND BUSINESS THE BOARD WILL ALSO CONSIDER REQUIRING DEALERS TO DISCLOSE TO BOND BUYERS ANY CAMPAIGN CONTRIBUTIONS THEY MADE TO OFFICIALS OF THE ISSUER FOR TWO YEARS BEFORE AND TWO YEARS AFTER THE BUSINESS WAS AWARDED THE MOVE TO CHANGE PAYTOPLAY ALREADY RECEIVED A BIG BOOST WHEN 17 OF THE LARGEST WALL STREET SECURITIES FIRMS RECENTLY ANNOUNCED THAT THEY THEIR POLITICAL ACTION COMMITTEES AND THEIR PUBLICFINANCE EMPLOYEES WILL NO LONGER MAKE CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS LATER THIS MONTH THE NATIONAL ASSOCIATION OF BOND LAWYERS WHICH HAD ONCE DECLARED POLITICAL CONTRIBUTIONS OF LITTLE CONCERN WILL CONVENE ITS BOARD TO DISCUSS LIMITATIONS ON MEMBERS' CONTRIBUTIONS AND THE PUBLIC SECURITIES ASSOCIATION A TRADE GROUP FOR MUNICIPALBOND DEALERS THAT HAD EARLIER SOUGHT TO SHIFT THE REFORM BURDEN TO BOND ISSUERS HAS SCHEDULED A NOV 17 FORUM FOR REGIONAL BOND FIRMS TO DISCUSS AMONG OTHER THINGS ADOPTING THE WALL STREET FIRMS' VOLUNTARY RESTRICTIONS SOME ATTEMPTS HAVE ALREADY BEEN MADE TO REFORM THE SYSTEM TWO YEARS AGO FLORIDA'S DIVISION OF BOND FINANCE ADOPTED A RULE PROHIBITING THE AWARDING OF BUSINESS TO FIRMS THAT MAKE CAMPAIGN CONTRIBUTIONS TO THE GOVERNOR OR CABINET MEMBERS BUT THE RULE WHICH FACES ITS FIRST TEST WITH NEXT YEAR'S ELECTIONS HAS A GLARING LOOPHOLE THAT MAY GUT ITS INTENT WITH NO MECHANISM FOR CHECKING THE CAMPAIGNFINANCE REPORTS FILED BY CANDIDATES THERE'S NO WAY TO KNOW WHAT BOND FIRMS MAY HAVE CONTRIBUTED AND WHICH ONES WOULD BE INELIGIBLE FOR STATE BUSINESS IT ISN'T KNOWN JUST HOW MUCH THE BOND INDUSTRY SPENDS ON POLITICAL CONTRIBUTIONS BUT MERRILL LYNCH & CO ITS POLITICAL ACTION COMMITTEE AND EMPLOYEES ARE BELIEVED TO HAVE GIVEN ABOUT 400000 TO STATE AND LOCAL CANDIDATES IN LAST YEAR'S ELECTIONS PUBLIC RECORDS OF SECURITIES FIRMS' CONTRIBUTIONS ARE SCATTERED THROUGH STATE CAPITOLS AND CITY HALLS ACROSS THE COUNTRY AND THE FIRMS ARE SHARING THEIR OWN RECORDS ONLY WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER A SPECIAL REQUEST FROM THE AGENCY'S ENFORCEMENT SECTION CLEARLY THOUGH WALL STREET HAS BECOME A PRIME SOURCE OF OUTOFSTATE DOLLARS FOR CASHHUNGRY STATE AND LOCAL POLITICIANS IN CALIFORNIA FOR EXAMPLE MS BROWN'S SPOKESMAN SAYS ABOUT 8 OF THE CONTRIBUTIONS TO HER 1990 STATEWIDE CAMPAIGN CAME FROM BOND FIRMS MS LANDRIEU SAYS SHE TRIES TO LIMIT BONDRELATED CONTRIBUTIONS TO ABOUT 20 OF HER TOTAL CAMPAIGN FUNDS AMONG THOSE MOST TROUBLED BY CHANGES IN THE SYSTEM ARE SOME OF THE MINORITYOWNED SECURITIES FIRMS THAT HAVE MADE GREAT INROADS IN THE PUBLICFINANCE BUSINESS OVER THE PAST 20 YEARS AND THAT HAVE BEEN AMONG THE GREATEST SOURCES OF FUNDS FOR CHRONICALLY UNDERFINANCED MINORITY CANDIDATES NEW YORK BOND LAWYER AL TINDALL THE NEW CHAIRMAN OF THE NATIONAL ASSOCIATION OF SECURITIES PROFESSIONALS A MINORITYORIENTED TRADE GROUP COMPLAINS THAT THE RULES ARE CHANGING JUST WHEN MINORITYOWNED FIRMS ARE MAKING ENOUGH MONEY TO SUPPORT MINORITY CANDIDATES WE'RE NOT SAYING THAT IF YOU DON'T GIVE US THE CHANCE TO GIVE WE WON'T GET HE SAYS BUT HE ADDS IF YOU TAKE AWAY THE ABILITY FOR PEOPLE WHO SUPPORT GOOD GOVERNMENT TO DO SO THE NUMBERS OF WOMEN AND MINORITIES WHO RISE TO GOVERNMENT OFFICE WILL DIMINISH MR TINDALL IS SCHEDULED TO DISCUSS THE ISSUE TODAY WITH ARTHUR LEVITT CHAIRMAN OF THE SEC WHICH MUST DECIDE WHETHER TO APPROVE ANY CONTRIBUTION LIMIT ADOPTED BY THE MUNICIPAL SECURITIES RULEMAKING BOARD WE'RE NOT SAYING THERE AREN'T SOME BAD APPLES IN THE INDUSTRY THAT WANT UNDUE FAVORS FOR THEIR CONTRIBUTIONS HE SAYS BUT WE DON'T THINK YOU DEAL WITH THE BAD APPLES BY CREATING THIS PROHIBITION ON A CONSTITUTIONAL RIGHT EVEN IF NEW CAMPAIGN LIMITS ARE ADOPTED BOND FIRMS WILL STILL HAVE PLENTY OF WAYS TO WIN POLITICAL GOODWILL WITH DOLLARS FOR INSTANCE THE NATIONAL ASSOCIATION OF STATE TREASURERS STILL ALLOWS BOND UNDERWRITERS AND OTHERS TO HELP DEFRAY EXPENSES OF ITS ANNUAL CONVENTION HOWEVER IT HAS STOPPED LETTING SECURITIES FIRMS UNDERWRITE SPECIFIC CONVENTION EVENTS MILTON WELLS AN OFFICIAL OF THE GROUP SAYS IT CONCLUDED THAT THE WAR OF THE DINNERS IN PREVIOUS YEARS WAS UNSEEMLY ALSO UNCHANGED IS SECURITIES FIRMS' PRACTICE OF HIRING STATE AND LOCAL OFFICIALS WHO PRESUMABLY WIELD SOME INFLUENCE WITH THEIR FORMER EMPLOYERS THE FORMER TREASURERS OF CONNECTICUT AND VIRGINIA FOR EXAMPLE NOW WORK FOR BONDUNDERWRITING FIRMS AND LAST MONTH BEAR STEARNS & CO ANNOUNCED THE HIRING OF DALLAS CITY MANAGER JAN HART IN ITS DALLAS PUBLICFINANCE OFFICE AND BOND FIRMS WILL STILL BE ABLE TO HELP FINANCE GETOUTTHEVOTE EFFORTS TO PASS LOCAL BOND ISSUES THEY WOULD UNDERWRITE AS TO HOW MUCH STATE AND LOCAL CANDIDATES MAY FEEL THE LOSS OF ANY BONDINDUSTRY CONTRIBUTIONS CAMPAIGN VETERANS SUGGEST THE EFFECT WILL BE THE GREATEST IN SUCH BONDBUSINESS BEHEMOTHS AS NEW YORK CITY AND CALIFORNIA BUT THE IMPACT MAY BE LESS ELSEWHERE WHERE OTHER INTEREST GROUPS OVERSHADOW THE BOND FIRMS AS BIG GIVERS SAYS CAROL REED A DALLASBASED FUNDRAISER FOR STATE AND LOCAL POLITICIANS IF WE WERE TALKING ABOUT THE TRIAL LAWYERS I'D HAVE A HEART ATTACK 9311100146 931110 INTERNATIONAL SOME GERMANS PIN HOPES ON SERVICE JOBS ISSUE OF STORE HOURS BECOMES ECONOMIC HOT SPOT BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN SITTING IN THE BACK OFFICE OF HIS CORNER FILLING STATION KLAUSDIETER HEYER THINKS HE HAS THE SOLUTION FOR GERMANY'S UNEMPLOYMENT WOES IT'S ALL STARTING HERE EXCLAIMS MR HEYER WHO HOLDS A FRANCHISE FROM THE GERMAN OIL COMPANY ARAL AG IN CENTRAL BERLIN THE PRESSURE IS BOUND TO GROW THE LAWS ARE STUPID THE LAWS MR HEYER REFERS TO ARE GERMANY'S HIGHLY RESTRICTIVE STOREHOUR REGULATIONS WHICH ARE FREQUENTLY BLAMED FOR INHIBITING THE GROWTH OF AN AMERICANSTYLE SERVICE CULTURE THEY REQUIRE THAT SHOPS CLOSE PUNCTUALLY AT 630 PM ON MOST WEEKDAY EVENINGS 2 PM ON MOST SATURDAYS AND ALL DAY SUNDAY SINCE 1989 STORES HAVE HAD THE OPTION OF REMAINING OPEN UNTIL 830 PM ON THURSDAYS OFFICIALLY KNOWN AS SERVICES EVENING BUT RELATIVELY FEW ACTUALLY DO THE STRICTURES HAVE CONTRIBUTED MIGHTILY TO MAKING GERMANY A SHOPPING NIGHTMARE A PLACE WHERE THRONGS OF PEOPLE JAM STORES IN THE LAST HOUR OF BUSINESS ON WEEKDAYS AND RISE EARLY ON SATURDAYS FOR SHOPPINGCART DEMOLITION DERBIES DURING THE HECTIC SEARCH FOR WEEKEND NECESSITIES POLICY MAKERS ARE INCREASINGLY CONVINCED THAT THE LIMITED HOURS ARE ALSO LIMITING CONSUMPTION AND WITH IT JOB GROWTH INDEED THERE IS A GROWING BELIEF IN GERMANY THAT GROWTH NOT JUST IN RETAILING BUT ACROSSTHEBOARD IN SERVICES WILL BE ESSENTIAL FOR OVERCOMING THE PERSISTENT HIGH JOBLESS RATE THAT IS FORECAST FOR THE COMING YEARS THE MOST OPPORTUNITIES FOR JOB CREATION ARE IN THE SERVICE SECTOR WHERE GERMANY IS FAR BEHIND SAYS HEINO FASSBENDER A MCKINSEY & CO SENIOR PARTNER IN FRANKFURT WHO IS DIRECTING A STUDY ON UNEMPLOYMENT AND LABOR MARKETS INDEED MCKINSEY'S RESEARCH SHOWS THAT GERMANY CREATED PROPORTIONALLY ONLY ABOUT 60 AS MANY SERVICE JOBS IN THE 1980S AS THE US THE COUNTRY'S ECONOMY CONTINUES TO BE MORE HEAVILY DEPENDENT ON MANUFACTURING THAN ANY OTHER WESTERN NATION A FACT THAT HAS CONTRIBUTED TO THE SEVERITY OF GERMANY'S CURRENT RECESSION MR HEYER AND HIS FELLOW FILLINGSTATION OWNERS ARE CONVINCED THEY ARE THE OUTRIDERS OF WHAT COULD WIND UP AS A SERIOUS CULTURAL CHANGE OPERATING MINIMARKETS THAT SELL EVERYTHING FROM CANNED SOUPS TO PACKAGED NUTS AT THEIR STATIONS AFTER OFFICIAL CLOSING TIME THEY SEE THEMSELVES AS PRYING OPEN THE DOOR TO A SERVICEORIENTED FUTURE IN FACT THE MINIMARKETS HAVE BEEN AROUND FOR YEARS BUT NEWLY BUILT ONES HAVE BEEN GROWING TO THE POINT WHERE THEY ARE SMALL SUPERMARKETS LAST MONTH THEIR RIGHT TO SELL TRAVEL NECESSITIES AFTER HOURS WAS VINDICATED BY GERMANY'S HIGHEST ADMINISTRATIVE COURT WHICH TOOK THE PRACTICE OUT OF A COMMERCIAL GRAY ZONE THAT'S GOOD NEWS FOR THE STREAM OF CUSTOMERS MR HEYER ESTIMATES THAT 30 OF THEM COME ON FOOT WHO STOP AT HIS MODEST 180SQUAREFOOT STORE AFTER CLOSING HOURS OR DURING THE WEEKEND SHOPPING DROUGHT HIS SALES FIGURES HAVE CONVINCED HIM THAT GERMANS ARE EAGER FOR DEREGULATED SHOPPING MORE THAN 50 OF HIS REVENUE COMES NOT FROM GAS BUT THE MINIMARKET THE SHOP HE SAYS CARRIES THE FILLING STATION IT IS LITTLE BLOWS FOR CONSUMERISM LIKE THE MINIMARKET PHENOMENON THAT BONN IS HOPING WILL IGNITE DEMAND FOR MORE SHOPPING OPPORTUNITY CONTRAVENING A PROMISE BY CHANCELLOR HELMUT KOHL NOT TO REOPEN THE ISSUE BEFORE NEXT YEAR'S NATIONAL ELECTIONS ECONOMICS MINISTER GUENTER REXRODT NOW ADVOCATES ALLOWING STORES TO STAY OPEN UNTIL 10 PM HE HAS VOWED TO PUSH THROUGH THE OVERDUE ABOLITION OF THIS OUTMODED LAW BEFORE GERMANS GO TO THE POLLS AGAIN MR REXRODT FACES DETERMINED OPPOSITION FROM THE SAME ALLIANCE THAT HAS SO FAR BALKED AT VIRTUALLY ALL ATTEMPTS TO THROW OPEN STORE DOORS RETAILERS HAVE TRADITIONALLY REFUSED TO CONTEMPLATE REPEALING THE LAW BECAUSE THEY DON'T WANT TO HAVE TO COMPETE AT ALL HOURS AND UNIONS ARGUE THAT LONGER STORE HOURS WON'T INCREASE REVENUE OR JOBS SINCE GERMAN CONSUMERS DON'T HAVE MORE MONEY TO SPEND ACCORDING TO HUBERT GARTZ DEPUTY CHAIRMAN OF THE DAG UNION WHICH REPRESENTS 150000 RETAIL WORKERS CITING AN ARGUMENT THAT FINDS SURPRISINGLY BROAD AGREEMENT AMONG GERMAN CONSUMERS INCLUDING CAREER WOMEN MR GARTZ ALSO SAYS LENGTHENING STORE HOURS WOULD BE UNFAIR TO WORKERS BECAUSE THEN THEY CAN'T REALLY BE TOGETHER IN THEIR FAMILY LIFE THE STOREHOURS ISSUE ISN'T ONE UNION MEMBERS TAKE LIGHTLY THE INTRODUCTION OF SERVICES EVENING HAPPENED AFTER SIX WEEKS OF ROLLING STRIKES AND AN AGREEMENT TO SHORTEN SATURDAY HOURS MR GARTZ'S DAG HAS THREATENED TO FIGHT WITH TOOTH AND CLAW AGAINST EXTRA STORE HOURS WHILE RETAILING IS ONLY PART OF THE SERVICES SPECTRUM A CHANGE IN CONSUMER EXPECTATIONS IN ONE SERVICE INDUSTRY IS BOUND TO AFFECT THOSE IN OTHERS AND THEREIN EXPERTS BELIEVE LIES THE HOPE FOR THE GERMAN LABOR MARKET WITH MANUFACTURING COMPANIES SHEDDING JOBS BY THE THOUSANDS AND MOVING LABORINTENSIVE WORK ABROAD MR FASSBENDER OF MCKINSEY & CO THINKS THE TIME HAS COME FOR GERMAN COMPANIES TO START THINKING DIFFERENTLY ABOUT SELLING SERVICES PEOPLE HAVEN'T BEEN READY TO PAY FOR SERVICES THE WAY THEY DO IN OTHER COUNTRIES AND MANAGERS THINK SERVICES DON'T CREATE VALUE WHEN VISITING CLIENTS HE SAYS I HAVE THIS DISCUSSION EVERY DAY THEY LOOK AT ME AND THINK I'M CRAZY MOREOVER IN A PROLONGED PERIOD OF DOUBLEDIGIT UNEMPLOYMENT MANY WONDER IF GERMANS WILL SCALE BACK THEIR EXPECTATIONS FOR HIGHWAGE JOBS AND TAKE THE KIND OF POORLY PAYING JOBS THAT HAVE ACCOUNTED FOR A SIZABLE PART OF AMERICAN JOB CREATION IN AMERICA SOMEONE FILLS YOUR BAG AT THE GROCERY STORE SAYS PROF ERWIN SCHEUCH A SOCIOLOGIST AT THE UNIVERSITY OF COLOGNE NO ONE IN GERMANY WOULD BE WILLING TO DO THAT SO BAGS ARE LEFT LYING ON THE COUNTER FOR CUSTOMERS TO FILL THEMSELVES PEOPLE FEEL MORE CLASSIFIED BY THEIR WORK HERE THAN THEY DO IN OTHER COUNTRIES HE OBSERVES SO THEY ARE LESS LIKELY TO TAKE A JOB THEY CONSIDER MENIAL CONSEQUENTLY SOME ANALYSTS BELIEVE THAT GERMANS' READJUSTMENT OF THEIR NOTIONS OF ACCEPTABLE WORK WILL BE A ROCKY PROCESS STILL PROF SCHEUCH THINKS THAT PERSISTENT HIGH UNEMPLOYMENT AND THE DEEP CHANGES AT WORK IN THE GERMAN ECONOMY WILL TURN OUT TO BE ENOUGH OF A PROD BY THE MIDDLE 1990S HE PREDICTS EVEN THE GERMANS WILL BE MOVING TOWARD THE AMERICAN ECONOMY 9311100145 931110 WHO'S NEWS PANCHO'S MEXICAN BUFFET INC PANCHO'S MEXICAN BUFFET INC FORT WORTH TEXAS SAMUEL L CARLSON 57 YEARS OLD WAS ELECTED A DIRECTOR OF THIS OPERATOR OF BUFFETSTYLE RESTAURANTS MR CARLSON THE COMPANY'S SENIOR VICE PRESIDENT ADMINISTRATION AND SECRETARY FILLS A SEAT PREVIOUSLY HELD BY JESSE ARRAMBIDE THE COMPANY'S FOUNDER AND FORMER CHAIRMAN WHO DIED JULY 31 9311100144 931110 FINANCING BUSINESS HOLLINGER INC HOLLINGER INC SAID IT FILED A PRELIMINARY SHORTFORM PROSPECTUS FOR AN OFFERING OF ABOUT 100 MILLION CANADIAN DOLLARS US766 MILLION OF PRINCIPAL AMOUNT OF CONVERTIBLE DEBENTURES DUE NOV 1 1998 HOLLINGER A TORONTOBASED NEWSPAPERPUBLISHING CONCERN SAID EACH DEBENTURE WILL BE CONVERTIBLE ON MATURITY INTO A NUMBER OF COMMON SHARES OF HOLLINGER IT SAID THE NUMBER OF SHARES TO BE ISSUED WILL BE CALCULATED TO ALLOW THE HOLDER TO BENEFIT FROM ANY INCREASE IN THE MARKET PRICE OF COMMON SHARES OF SOUTHAM INC ANOTHER TORONTOBASED NEWSPAPER PUBLISHING AND PRINTING CONCERN IN WHICH HOLLINGER HAS A 23 INTEREST THE DEBENTURES ARE EXPECTED TO BE PRICED IN LATE NOVEMBER 9311100143 931110 WHO'S NEWS AVON PRODUCTS INC AVON PRODUCTS INC NEW YORK JOHN I NOVOSAD 53 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF CORPORATE EXECUTIVE VICE PRESIDENT ASIA/PACIFIC OF THE BEAUTYPRODUCTS AND DIRECTSALES CONCERN MR NOVOSAD WAS FORMERLY GROUP OFFICER ASIA/PACIFIC 9311100142 931110 GTECH'S SHARES FALL 44 ON FUROR OVER CONTRACTS PROVIDENCE RI NEW DEVELOPMENTS IN CONTROVERSIES SURROUNDING GTECH HOLDINGS CORP'S LOTTERY CONTRACTS IN CALIFORNIA AND MARYLAND COMBINED TO SEND THE COMPANY'S STOCK DOWN 44 IN CALIFORNIA GOV PETE WILSON ASKED THE STATE AUDITOR TO REVIEW THE PROCUREMENT PROCESS THAT LED TO GTECH'S FIVEYEAR 200 MILLION CONTRACT TO OPERATE THE STATE'S ONLINE GAMING SYSTEM GOV WILSON ACTED AFTER SHARON SHARP STATE LOTTERY DIRECTOR RECOMMENDED THE REVIEW AS SHE RESIGNED HER POST MEANWHILE MARYLAND LEGISLATORS BLASTED THE STATE LOTTERY DIRECTOR FOR A 50 MILLION CONTRACT AWARDED TO GTECH IN 1992 FOR AN ONLINE KENO LOTTERY GAME THE LAWMAKERS SERVE ON A TASK FORCE REVIEWING THE STATE'S PROCUREMENT LAW AT ISSUE FOR GTECH HAS BEEN A PRACTICE OF AMENDING EXISTING CONTRACTS TO WIN NEW BUSINESS WITHOUT FACING A COMPETITIVE BIDDING PROCESS FOR INSTANCE GTECH HAS A STANDING CONTRACT WITH CALIFORNIA'S LOTTERY THAT CARRIES AN AMENDMENT THAT ALLOWS THE STATE LOTTERY TO EXPAND SERVICES UNDER THE EXISTING AGREEMENT A SIMILAR CONTRACT STRUCTURE IS BEING DEBATED IN MARYLAND MARYLAND AND CALIFORNIA STATE OFFICIALS SAID IT WOULD BE DIFFICULT TO OVERTURN ANY EXISTING CONTRACTS BUT WE MIGHT BE ABLE TO CHANGE THINGS SO THAT THE PROCESS WORKS BETTER IN THE FUTURE SAID JOHN CADE REPUBLICAN STATE SENATOR FROM ANNE ARUNDEL COUNTY MD 9311100141 931110 WHO'S NEWS GEON CO GEON CO CLEVELAND OHIO THOMAS A WALTERMIRE 43 YEARS OLD FORMERLY TREASURER WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS CHEMICAL CONCERN 9311100140 931110 WHO'S NEWS KINNARD INVESTMENTS INC KINNARD INVESTMENTS INC MINNEAPOLIS THOMAS J MULVANEY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMPANY'S JOHN G KINNARD & CO UNIT WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN OF THIS FINANCIAL SERVICES CONCERN HE SUCCEEDS ROBERT R MARTIN WHO RESIGNED EFFECTIVE DEC 31 9311100139 931110 WHO'S NEWS NATIONSBANK CORP NATIONSBANK CORP CHARLOTTE NC R EUGENE TAYLOR 46 YEARS OLD HAS BEEN NAMED PRESIDENT OF THIS BANKING COMPANY'S MIDATLANTIC BANKING GROUP WHICH INCLUDES MARYLAND WASHINGTON DC AND NORTHERN VIRGINIA HE SUCCEEDS J HAROLD CHANDLER WHO RESIGNED TO TAKE A JOB IN ANOTHER INDUSTRY MR TAYLOR'S PREVIOUS JOB WAS AS PRESIDENT OF NATIONSBANK FLORIDA ADELAIDE A SINK 45 A FORMER FLORIDA CONSUMER BANK EXECUTIVE SUCCEEDS MR TAYLOR 9311100138 931110 VONS POSTS LOSS FOR THIRD PERIOD MOVES TO CUT COSTS BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL ARCADIA CALIF VONS COS PLAGUED BY THE WEAK SOUTHERN CALIFORNIA ECONOMY REPORTED A THIRDQUARTER NET LOSS AND SAID IT WILL CUT 250 JOBS REDUCE TOP EXECUTIVES' SALARIES AND CLOSE 11 STORES THE SUPERMARKET CHAIN WHICH TOOK A ONETIME CHARGE OF 569 MILLION OR 77 CENTS A SHARE FOR THE STORE CLOSINGS AND RELATED RESTRUCTURING MOVES REPORTED A NET LOSS OF 20 MILLION OR 48 CENTS A SHARE FOR THE PERIOD ENDED OCT 10 THE RESULTS ALSO INCLUDED A TAXRELATED CHARGE OF 2 MILLION AND A DEBTREFINANCING CHARGE OF 14 MILLION IN THE YEAREARLIER PERIOD VONS HAD NET INCOME OF 223 MILLION OR 51 CENTS A SHARE SALES IN THE QUARTER SLIPPED 88 TO 153 BILLION FROM 168 BILLION WHICH A VONS SPOKESWOMAN ATTRIBUTED TO THE ECONOMIC ENVIRONMENT AND CONTINUED COMPETITIVE ACTIVITY FROM ALL FOOD RETAILERS IN THE MARKETPLACE VONS'S COSTCUTTING MEASURES INCLUDE A 15 SALARY CUT FOR ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER ROGER E STANGELAND TO 606050 THE SPOKESWOMAN SAID THE PLAN WILL REDUCE SALARIES OF FIVE OTHER TOP EXECUTIVES BY 10 AND FREEZE ADMINISTRATIVE SALARIES VONS INTENDS TO SUBSTANTIALLY REDUCE OR CUT ALL PERFORMANCE BONUSES FOR THE YEAR DEPENDING ON YEAREND RESULTS AND TO DISPOSE OF ALL 250 OF ITS LEASED COMPANY CARS THE SPOKESWOMAN SAID THE COMPANY WILL ALSO CUT ABOUT 250 EXECUTIVELEVEL JOBS OR 15 OF ITS ADMINISTRATIVE STAFF THE SPOKESWOMAN ADDED THAT WHILE THERE COULD BE MORE LAYOFFS MOST OF THE ANTICIPATED JOB CUTS WOULD OCCUR THIS WEEK MR STANGELAND SAID IN A STATEMENT THAT THE COMPANY WOULD KEEP LOOKING FOR WAYS TO PARE COSTS VONS DIDN'T IDENTIFY THE 11 STORES TO BE CLOSED BUT SIX THROUGHOUT THE REGION WOULD BE SHUT DOWN BEFORE THE END OF THE YEAR THE SPOKESWOMAN SAID VONS CURRENTLY OPERATES ABOUT 350 STORES AND SAID IT AIMS TO BOOST SALES BY REINVESTING SAVINGS FROM ITS RESTRUCTURING TO IMPROVE CUSTOMER SERVICE PRODUCT PRICING AND PROMOTIONS AS OF OCT 10 VONS HAD REVOLVING DEBT BORROWINGS TOTALING 354 MILLION WITH 41 MILLION IN AVAILABLE UNUSED CREDIT THE COMPANY SAID IT EXPECTS TO COMPLETE ARRANGEMENTS WITH ITS BANKS FOR AN ADDITIONAL 150 MILLION CREDIT FACILITY IN THE NEAR FUTURE VONS REITERATED THAT IT IS LOOKING FOR A SUCCESSOR TO MR STANGELAND 64 YEARS OLD WHO HAS PARTIALLY RESUMED HIS DUTIES AFTER HEART BYPASS SURGERY THIS FALL BUT HASN'T INDICATED WHEN HE PLANS TO RETIRE BILL DAVILA 62 VONS'S PRESIDENT EMERITUS IS ASSISTING MR STANGELAND UNTIL HE RETURNS TO THE COMPANY FULL TIME EARLY NEXT YEAR VONS SAID IN A STATEMENT VONS'S EXECUTIVE SEARCH COMMITTEE WILL ADDRESS THE ISSUE OF TIMING FOR MR STANGELAND'S RETIREMENT THE SPOKESWOMAN SAID VONS ALSO NAMED STEVEN A BURD 44 AND JAMES H GREENE JR 43 TO TWO VACANT SEATS ON ITS 11MEMBER BOARD MR BURD IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SUPERMARKET CHAIN SAFEWAY INC BASED IN OAKLAND CALIF AND MR GREENE IS GENERAL PARTNER OF KOHLBERG KRAVIS ROBERTS & CO LP A NEW YORK DIVERSIFIED HOLDING COMPANY AND MAJORITY SHAREHOLDER OF SAFEWAY SAFEWAY OWNS 349 OF VONS'S COMMON STOCK IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE VONS SHARES CLOSED AT 18625 UP 375 CENTS 9311100137 931110 MICRON TECHNOLOGY FORMS UNIT BOISE IDAHO MICRON TECHNOLOGY INC A MAKER OF SEMICONDUCTOR MEMORY CHIPS SAID IT FORMED A NEW UNIT MICRON SYSTEMS INTEGRATION INC WHICH WILL DESIGN AND MAKE SEMICONDUCTOR TEST SYSTEMS AND AUTOMATION EQUIPMENT THE UNIT ALSO WILL OFFER CUSTOM CHIPTESTING SERVICES AT A NEW 25000SQUAREFOOT FACILITY THAT'S SCHEDULED TO BEGIN OPERATION IN THE SECONDQUARTER OF 1994 9311100136 931110 WHO'S NEWS SG WARBURG GROUP PLC SG WARBURG GROUP PLC LONDON THOMAS H WYMAN 63 YEARS OLD WAS NAMED A VICE CHAIRMAN OF THE INTERNATIONAL INVESTMENTBANKING AND ASSETMANAGEMENT FIRM MR WYMAN CONTINUES AS CHAIRMAN OF ITS US OPERATIONS 9311100135 931110 WHO'S NEWS PRIME MEDICAL SERVICES INC PRIME MEDICAL SERVICES INC AUSTIN TEXAS MICHAEL J SPALDING 52 YEARS OLD AND WILLIAM E FOREE JR 61 WERE NAMED DIRECTORS OF THIS PROVIDER OF NONMEDICAL MANAGEMENT SERVICES INCREASING THE SIZE OF THE BOARD TO NINE MEMBERS IN MIDOCTOBER PRIME MEDICAL SAID IT HAD ACQUIRED FOUR LITHOTRIPTERS DEVICES THAT USE SOUND WAVES TO BREAK UP KIDNEY STONES FROM THREE TENNESSEE PARTNERSHIPS DR SPALDING A NASHVILLE TENN UROLOGIST AND DR FOREE AN ATHENS TENN UROLOGIST WERE BOTH ASSOCIATED WITH THOSE PARTNERSHIPS 9311100134 931110 TREASURY PLANS TO RAISE 305 BILLION NEW CASH WITH THE SALE OF BILLS WASHINGTON THE TREASURY PLANS TO RAISE 305 BILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 276 BILLION IN SHORTTERM BILLS TO REDEEM 2456 BILLION IN MATURING 13WEEK AND 26WEEK BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING FEB 17 1994 AND MAY 19 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794H98 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794K60 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9311100133 931110 QUAKER STATE UNIT SUIT REJECTED SANTA ANA CALIF AN ORANGE COUNTY JUDGE UPHELD A JUDGMENT INCREASE RENDERED OCT 12 AGAINST HERITAGE LIFE INSURANCE CO A SUBSIDIARY OF QUAKER STATE CORP THE JUDGE REJECTED HERITAGE'S OBJECTION TO THE RULING WHICH INCREASED THE TOTAL JUDGMENT TO 217 MILLION FROM 193 MILLION THE INCREASE WAS TO REFLECT PREJUDGMENT CONTRACTUAL INTEREST DUE TO THE PLAINTIFF WESCAL CREDIT INSURANCE A PARTNERSHIP BASED IN AGORUA HILLS CALIF WESCAL'S ORIGINAL SUIT WHICH IT WON JULY 30 1993 CLAIMED THAT HERITAGE BREACHED A CONTRACT IN 1984 TO DEVELOP AND MARKET INSURANCE IN CONNECTION WITH LONGTERM REAL ESTATE LOANS QUAKER STATE IN OIL CITY PA SAID IT WOULD CONTINUE THE APPEALS PROCESS 9311100132 931110 WHO'S NEWS READER'S DIGEST ASSOCIATION INC READER'S DIGEST ASSOCIATION INC PLEASANTVILLE NY M CHRISTINE DEVITA 43 YEARS OLD WAS ELECTED A DIRECTOR OF THE PUBLISHER AND DIRECTMAIL MARKETER FILLING A VACANCY ON THE NINEMEMBER BOARD MS DEVITA AN ATTORNEY IS PRESIDENT AND A DIRECTOR OF THE DEWITT WALLACEREADER'S DIGEST FUND AND THE LILA WALLACEREADER'S DIGEST FUND TWO PRIVATE CHARITABLE ORGANIZATIONS ESTABLISHED BY THE FOUNDERS OF READER'S DIGEST 9311100131 931110 PIZZA HUT PLANS ACQUISITION WICHITA KAN PIZZA HUT INC SAID IT WILL ACQUIRE THE D'ANGELO SANDWICH SHOP CHAIN TERMS WEREN'T DISCLOSED PIZZA HUT A UNIT OF PEPSICO INC SAID IT WILL KEEP THE D'ANGELO NAME AND MENU OF SANDWICHES SALADS AND ICE CREAM AT THE 173 SHOPS PIZZA HUT SAID IT WILL EVENTUALLY ADD ITS OWN PIZZADELIVERY UNITS AT THOSE LOCATIONS D'ANGELO IS A CLOSELY HELD CHAIN BASED IN WEST BRIDGEWATER MASS 9311100130 931110 WHO'S NEWS SEAGRAM CO SEAGRAM CO NEW YORK MARTIN FROST 43 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT BUSINESS DEVELOPMENT/STRATEGIC PLANNING AT THE SPIRITS AND WINE GROUP OF THE BEVERAGE COMPANY HE WAS MOST RECENTLY SENIOR VICE PRESIDENT BUSINESS DEVELOPMENT FOR THE GROUP 9311100128 931110 WHO'S NEWS DIED GREGORY J LIEMANDT 50 FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF UCCEL CORP WHICH WAS ACQUIRED IN 1987 BY COMPUTER ASSOCIATES INTERNATIONAL INC FRIDAY IN DALLAS OF CANCER 9311100127 931110 WHO'S NEWS HOMESTAKE MINING CO HOMESTAKE MINING CO SAN FRANCISCO CARMEN FIMIANI 48 YEARS OLD RESIGNED AS VICE PRESIDENT OF US AND INTERNATIONAL OPERATIONS FOR THIS MINING CONCERN THE COMPANY SAID THAT MR FIMIANI RESIGNED TO PURSUE OTHER INTERESTS MR FIMIANI DECLINED TO COMMENT OR PROVIDE DETAILS THE COMPANY SAID ALL OF ITS MINING AND METALLURGICAL OPERATIONS WILL REPORT DIRECTLY TO PETER STEEN 63 HOMESTAKE'S PRESIDENT AND CHIEF OPERATING OFFICER 9311100126 931110 INTERNATIONAL BAA DISCOUNTSTORES VENTURE LONDON BAA PLC ANNOUNCED A JOINT VENTURE WITH THE EUROPEAN UNIT OF MCARTHUR/GLEN REALTY TO DEVELOP AND OPERATE DESIGNERLABEL DISCOUNT STORES IN THE UK AND EUROPE BAA SAID IT PLANS TO DEVELOP SIX SHOPPING MALLS IN THE NEXT THREE TO FOUR YEARS IN THE UNITED KINGDOM AT A COST OF ABOUT 40 MILLION 593 MILLION 9311100123 931110 HEALTH STUDY RAISES A WARNING FLAG ABOUT CANADIAN HEALTH CARE BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY COMPARING ONE TYPE OF MEDICAL CARE IN THE US AND CANADA FOUND THAT CANADIANS GET LESS AGGRESSIVE TREATMENT FOR HEART ATTACKS AND SUFFER MORE PAIN AND DISABILITY DURING RECOVERY THAN US PATIENTS RESEARCHERS SAID THE FINDINGS RAISE A WARNING FLAG ABOUT THE CANADIAN HEALTHCARE SYSTEM'S STRATEGY FOR CONTAINING COSTS BY STRICTLY LIMITING USE OF HIGHTECHNOLOGY SERVICES THE PREVALENT FEELING BY SOME ADVOCATES OF THE CANADIAN SYSTEM IS THAT LESS IS JUST AS GOOD AS MORE SAID ROBERT CALIFF A RESEARCHER AT DUKE UNIVERSITY MEDICAL CENTER AND ONE OF THE LEADERS OF THE STUDY BUT THIS STUDY SHOWS THAT LESS MAY NOT BE AS GOOD THE FINDINGS BASED ON ONE OF THE MOST COMPREHENSIVE EFFORTS TO COMPARE THE IMPACT OF THE US AND CANADIAN HEALTH SYSTEMS ON PATIENT CARE COME AS THE US IS IN THE MIDST OF A NATIONAL DEBATE ON HOW TO REFORM ITS HEALTH SYSTEM SOME HEALTHREFORM PROPONENTS REGARD CANADA'S SOCALLED SINGLEPAYER SYSTEM IN WHICH THE GOVERNMENT COLLECTS TAXES TO PAY FOR HEALTH COVERAGE FOR ALL CITIZENS AS A MODEL FOR THE US PRESIDENT CLINTON'S PLAN FOR OVERHAULING THE US SYSTEM RELIES ON A BLEND OF REGULATORY AND MARKET FORCES TO PROVIDE UNIVERSAL COVERAGE IT ALSO PROPOSES TO SET BUDGETARY CONTROLS THAT SOME REGARD AS SIMILAR TO THE CANADIAN SYSTEM WHILE THE STUDY INDICATED THAT US HEARTATTACK PATIENTS HAVE A HIGHER QUALITY OF LIFE DR CALIFF ACKNOWLEDGED THAT THE US HEALTHCARE SYSTEM MAY USE TOO MANY RESOURCES THE AMERICANS MIGHT NOT HAVE NEEDED ALL THE TECHNOLOGY THEY GOT TO ACHIEVE THAT SAME QUALITY OF LIFE HE SAID I THINK WE WOULD ALL AGREE THAT SOMEWHERE HALFWAY BETWEEN CANADA AND THE US WOULD PROBABLY BE ABOUT RIGHT PREVIOUS STUDIES HAVE GENERALLY FOUND THAT THE CANADIAN SYSTEM IS LESS COSTLY USES FEWER RESOURCES AND HAS MINIMAL ADMINISTRATIVE BURDENS FOR PATIENTS ALL WITH LITTLE DIFFERENCE IN DEATH RATES FOR PATIENTS THE SYSTEM IS OFTEN CRITICIZED FOR REQUIRING LONG WAITING TIMES FOR ELECTIVE SURGERY THE NEW REPORT DIDN'T FIND ANY DIFFERENCES IN SURVIVAL AFTER HEART ATTACKS BUT IT DID SHOW SIGNIFICANT VARIATION IN THE QUALITY OF LIFE FOR PATIENTS FOLLOWING A HEART ATTACK THE REPORT IS BEING PRESENTED TODAY AT THE ANNUAL SCIENTIFIC MEETING OF THE AMERICAN HEART ASSOCIATION IN ATLANTA OUR STUDY CALLS INTO QUESTION THE OFTENMADE ASSUMPTION THAT THE HEALTH OUTCOMES OF THE US AND CANADIAN HEALTH SYSTEMS ARE EQUIVALENT SAID DANIEL B MARK ALSO A CARDIOLOGIST AT DUKE AND THE LEAD AUTHOR OF THE REPORT WE CAN'T PROVE THAT THE SUPERIOR OUTCOMES AMONG US PATIENTS ARE DEFINITELY DUE TO THE PROCESS OF CARE BUT WE THINK THAT'S PROBABLY THE MOST LIKELY REASON AT THE SAME TIME DR MARK CAUTIONED THAT THE STUDY LOOKED AT ONLY ONE CONDITION AND SHOULDN'T BE THE BASIS FOR MAKING BROAD CONCLUSIONS ABOUT THE PERFORMANCES OF THE TWO HEALTH SYSTEMS PAUL ARMSTRONG A CARDIOLOGIST AT ST MICHAEL'S HOSPITAL IN TORONTO AND THE COORDINATOR OF THE CANADIAN ARM OF THE STUDY SAID THE RESULTS SHOW A VERY REMARKABLE DIFFERENCE IN PRACTICE PATTERNS IN THE TWO COUNTRIES WHILE INTERPRETATION OF THE FINDINGS WILL BE IN THE EYE OF THE BEHOLDER DR ARMSTRONG SAID FURTHER STUDY IS NEEDED TO EXPLORE IMPLICATIONS OF THE DIFFERENCES THE FINDINGS ARE BASED ON A STUDY OF 2600 AMERICANS AND 400 CANADIANS WHO WERE PART OF A LARGER FOURYEAR STUDY THAT ENDED LAST MARCH COMPARING THE EFFECTIVENESS OF CLOTBUSTING DRUGS IN TREATING HEART ATTACKS RESULTS OF THE LARGER STUDY WERE PUBLISHED EARLIER THIS YEAR IN THE NEW ENGLAND JOURNAL OF MEDICINE FOR THE CURRENT REPORT RESEARCHERS GATHERED INFORMATION ON TREATMENTS ADMINISTERED TO PATIENTS AROUND THE TIME OF THEIR HEART ATTACKS AND THEN INTERVIEWED PATIENTS ONE MONTH SIX MONTHS AND ONE YEAR AFTER THEY WERE DISCHARGED FROM THE HOSPITAL THE STUDY FOUND THAT 48 OF CANADIAN PATIENTS UNDERWENT CARDIAC ANGIOGRAPHY DURING OR AFTER THEIR ATTACK COMPARED WITH 83 OF US PATIENTS THE PROCEDURE ENABLES DOCTORS TO SEE THE EXTENT OF DISEASE IN THE CORONARY ARTERIES IN ADDITION 18 OF CANADIANS HAD BALLOON ANGIOPLASTY TO OPEN UP BLOCKED ARTERIES WHILE 38 OF US PATIENTS HAD THE PROCEDURE AFTER ONE YEAR 30 OF CANADIAN PATIENTS AND 55 OF US PATIENTS HAD UNDERGONE EITHER ANGIOPLASTY OR HEART BYPASS SURGERY BASED ON DETAILED INTERVIEWS WITH PATIENTS CONDUCTED ONE YEAR AFTER THEIR HEART ATTACKS THE RESEARCHERS FOUND THAT 35 OF CANADIANS HAD RECENTLY SUFFERED CHEST PAIN COMPARED WITH 21 OF AMERICANS ABOUT 35 OF CANADIANS AND 26 OF AMERICANS SAID THEIR HEALTH WAS SO IMPAIRED THAT IT RESTRICTED THEIR ABILITY TO PERFORM MANY OF THEIR ROUTINE DAILY ACTIVITIES AND 64 OF CANADIANS AND 79 OF US PATIENTS SAID THEIR HEALTH WAS ABOUT THE SAME OR BETTER THAN BEFORE THEIR HEART ATTACKS 9311100122 931110 WHO'S NEWS TNP'S TARPLEY RESIGNS AS PRESIDENT AND CEO FORT WORTH TEXAS TNP ENTERPRISES INC SAID JAMES M TARPLEY RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE HOLDING COMPANY AND ITS TEXASNEW MEXICO POWER CO UNIT TO PURSUE OTHER INTERESTS TNP DIDN'T ELABORATE EXCEPT TO SAY THAT HEALTH EVIDENTLY WASN'T A FACTOR IN THE RESIGNATION MR TARPLEY COULDN'T BE REACHED IMMEDIATELY FOR COMMENT A 35YEAR VETERAN OF THE ELECTRIC UTILITY MR TARPLEY 59 YEARS OLD HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OF BOTH COMPANIES SINCE 1988 A SPOKESMAN SAID RD WOOFTER 70 CHAIRMAN OF THE COMPANIES DECLINED TO COMMENT BUT TNP SAID DWIGHT SPURLOCK 61 A RETIRED TNP EXECUTIVE WHO IS A DIRECTOR HAS BEEN NAMED INTERIM PRESIDENT AND CHIEF EXECUTIVE OF BOTH COMPANIES IN TRADING ON THE NEW YORK STOCK EXCHANGE TNP SHARES CLOSED AT 17125 DOWN 125 CENTS 9311100121 931110 CREDIT CARDS NO FEES EVER LOW RATES' FIRMS BESIEGE CONSUMERS WITH CREDITCARD OFFERS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A RECORD NUMBER OF CARD SOLICITATIONS ARE CRAMMING THE NATION'S MAILBOXES AMID A CONTINUED SLUMP IN COMMERCIAL LENDING CREDIT CARDS ARE AMONG THE FEW AREAS OF GROWTH IN THE BANKING INDUSTRY AND WITH THE HOLIDAY SEASON APPROACHING BANKS WANT TO TAP INTO THE EXPECTED SURGE IN RETAIL PURCHASES BUT DEMAND ISN'T KEEPING PACE WITH SUPPLY TO ENTICE CONSUMERS AND STEAL EACH OTHER'S CUSTOMERS BANKS ARE CONTINUING TO LOWER INTEREST RATES AND OFFERING MANY OTHER INCENTIVES THE TEASER INTEREST RATES ARE LOWER AND ARE BEING EXTENDED FOR A LONGER PERIOD THE AMOUNT CONSUMERS CAN BORROW ON A CARD IS ALSO GROWING TO 7500 OR MORE ONE OF THE BEST DEALS IN THE MARKETPLACE WACHOVIA BANK A UNIT OF WACHOVIA CORP LAST MONTH BEGAN OFFERING CARDS WITH A MEASLY 6 INTEREST RATE FOR THE FIRST YEAR AND THE PRIME RATE CURRENTLY 6 PLUS 39 THEREAFTER AMONG LARGE ISSUERS AMERICAN TELEPHONE & TELEGRAPH CO'S UNIVERSAL CARD IS BACK WITH A NOFEEFORLIFE CARD FOR SELECTED CUSTOMERS ISSUERS ARE DESPERATE FOR MARKET SHARE IT'S CALLED BALANCE PIRACY SAYS ROBERT MCKINLEY OF RAM RESEARCH CORP IT'S ALSO THE TIME OF THE YEAR WHEN OFFERINGS BECOME MORE ACTIVE BECAUSE OF THE CUTTHROAT COMPETITION SOME BANKS ARE TAKING THE SOLICITATIONS TO AN EXTREME AFTER LAUNCHING A NEW CARD WITH SHELL OIL CO CHEMICAL BANKING CORP IS SENDING EXISTING SHELL CUSTOMERS NEW CREDIT CARDS ALREADY EMBOSSED WITH THEIR NAMES ALL A CONSUMER HAS TO DO IS CALL AND ACTIVATE IT CONSUMERS BENEFIT FROM GETTING IT MUCH SOONER SAYS CHARLES WALSH EXECUTIVE VICE PRESIDENT AND GROUP EXECUTIVE AT CHEMICAL BANK HE SAYS THE RESPONSE HAS BEEN OVERWHELMING AND BETTER THAN TRADITIONAL SOLICITATIONS BUT THE PITCH HAS RAISED THE IRE OF SOME CUSTOMERS WHO LIKE TO CHOOSE THEIR OWN CARDS THANK YOU I DIDN'T ASK FOR A CARD AND I DON'T APPRECIATE HAVING A CARD WITH MY NAME ON IT SAYS MARTY MCDONALD A RETIRED CHASE MANHATTAN BANK EMPLOYEE WHO RECENTLY RECEIVED A CHEMICAL CREDIT CARD WHILE THE MERITS OF THE CARD MIGHT BE LEGITIMATE THE PRACTICE IS RECKLESS MR MCDONALD SAYS THE POTENTIAL FOR A SCAM IS EASY NOW THAT MOST BANKS ARE PITCHING CARDS WITH RATES OF 16 OR LESS VIRTUALLY ALL OF THE COMPANIES COMPARE THEIR RATES WITH THE 18 YOU MAY BE PAYING EVEN THOUGH VERY FEW BANK CARDS STILL CHARGE THAT RATE THE AVERAGE INTEREST RATE IS NOW 159 DOWN FROM 1715 ONE YEAR AGO THE RATE CUT HAS PICKED UP MOMENTUM SAYS MR MCKINLEY WHILE MANY BIG BANKS ARE OFFERING INTRODUCTORY RATES OF UNDER 10 SIGNET BANKING CORP IS OFFERING AN 89 RATE UNTIL JANUARY 1995 AT WHICH TIME IT JUMPS TO 139 CITIBANK IS OFFERING A FREE ROUNDTRIP FLIGHT ON AMERICAN AIRLINES WHEN CONSUMERS SIGN UP FOR ITS FREQUENTFLIER CARD CONSUMERS ARE TOLD THEY WILL GET THEIR TICKET SOON AFTER YOU PAY THE ANNUAL FEE IN SORTING AMONG THE SOLICITATIONS FAMILIES SHOULD BE CAREFUL JANET DAMTOFT OF ASHEVILLE NC WAS OFFERED AN 114 CARD FROM CHASE MANHATTAN BUT HER HUSBAND WALTER GOT A VIRTUALLY IDENTICAL MAILING EXCEPT THE INTEREST RATE WAS 94 ALL THIS MARKETING ISN'T CHEAP BANKS TYPICALLY RECEIVE A RESPONSE RATE OF 1 TO 2 OF A MAILING DOWN FROM AS MUCH AS 20 A DECADE AGO AND PAY 120 OR MORE PER ACCOUNT IN MARKETING COSTS INCLUDING ADVERTISING SAY ANALYSTS ACCORDING TO CREDIT CARD NEWS A CHICAGO NEWSLETTER CARDINDUSTRY AD SPENDING FOR THE FIRST HALF OF 1993 WAS AROUND 250 MILLION UP 51 FROM A YEAR EARLIER AND COULD TOTAL HALF A BILLION DOLLARS BY YEAR END AMONG THE BIGGEST SPENDERS ARE TWO TITANS CITICORP AND CHASE MANHATTAN CORP BOTH OF WHICH ARE TRYING DESPERATELY TO HOLD ONTO THEIR MARKET SHARE THE MULTITUDE OF MAILINGS REFLECT THE NEED FOR BANKS TO FIND NEW CUSTOMERS TO RUN THROUGH THEIR EXISTING CREDITCARD PROCESSING FACILITIES WHILE CONSUMER INSTALLMENT CREDIT HAS PICKED UP THIS YEAR SPENDING ON CARDS CONTINUES TO REMAIN BELOW TRENDS IN THE 1980S THE UNDERLYING PROBLEM IS WE HAVE A VERY MATURE MARKET AND A VERY INTENSE PRICE WAR BUILDING MR MCKINLEY SAYS IT CONTINUES TO PICK UP MORE MOMENTUM BECAUSE IT'S HARDER TO FIND NEW CARD HOLDERS IN AN ARTICLE YESTERDAY IT WAS INCORRECTLY REPORTED THAT A CREDIT CARD SOLICITATION BY CITIBANK CONTAINED AN OFFER OF A FREE AIRLINE TICKET FOR CARD SUBSCRIBERS THE OFFER REQUIRES THE PURCHASE OF ONE TICKET IN ORDER TO RECEIVE A FREE TICKET ALSO THE CITICORP UNIT DOESN'T NECESSARILY MAKE AVAILABLE THE SAME INCENTIVES FOR ALL PROSPECTIVE CARDHOLDERS IT SOLICITS 9311100120 931110 WHO'S NEWS EVANS WILL RESIGN NOV 22 AS CHAIRMAN OF HOME LOAN BOARD WASHINGTON DANIEL EVANS SAID HE'S RESIGNING NOV 22 AS CHAIRMAN OF THE FEDERAL HOUSING FINANCE BOARD WHICH OVERSEES THE FEDERAL HOME LOAN BANK SYSTEM IN HIS LETTER OF RESIGNATION TO PRESIDENT CLINTON MR EVANS CAUTIONED THAT THE FIVEMEMBER BOARD COULD FIND ITSELF WITHOUT A QUORUM AFTER THE END OF THE YEAR UNLESS THE PRESIDENT MOVES QUICKLY ON APPOINTMENTS ABSENT A QUORUM THE FINANCE BOARD WILL LACK THE CAPACITY TO DISCHARGE ITS POWERS AND AUTHORITIES UNDER THE LAW TO THE POSSIBLE DETRIMENT OF THE AGENCY AND THE HOME LOAN BANK SYSTEM HE SAID THE 44YEAROLD MR EVANS WHOSE POST WAS PART TIME SAID EARLIER THAT HE DOESN'T PLAN TO STAY ON ONCE THE POSITION BECOMES FULL TIME NEXT YEAR 9311100119 931110 SOCIETY CORP KEYCORP SIGN MARKETING ACCORD CLEVELAND SOCIETY CORP AND KEYCORP ALBANY NY SIGNED A JOINT MARKETING AGREEMENT FOR THE INTRODUCTION SALE AND SERVICING OF CERTAIN TRUSTRELATED PRODUCTS AND SERVICES OF BOTH COMPANIES THE COMPANIES SAID THEY EXPECT TO INTRODUCE THE PRODUCTS AROUND YEAR END THE BANK HOLDING COMPANIES SAID THE PRODUCTS INCLUDE THREE DAILY VALUATION 401K PLANS A SMALLMARKET PLAN DEVELOPED BY KEYCORP A MIDDLEMARKET PRODUCT CALLED PRISM INTRODUCED BY SOCIETY AND A LARGEEND OR COMPLEX PRODUCT OFFERED BY SOCIETY THE PRODUCTS AND SERVICES WILL BE OFFERED IN ALL OF SOCIETY AND KEY BANK MARKETS EXCEPT FLORIDA THE COMPANIES SAID WHILE KEYCORP AND SOCIETY WILL CONTINUE TO OPERATE AS SEPARATE COMPANIES UNTIL THEIR PROPOSED MERGER IS COMPLETED IN THE FIRST QUARTER THE MARKETING AGREEMENT STATES THAT VARIOUS PRODUCTS AND SERVICES OF EACH COMPANY ARE PERMITTED TO BE OFFERED TO CUSTOMERS AND CLIENTS OF THE OTHER BOTH COMPANIES SAID 9311100118 931110 AMWAY PLANS IPO TO FINANCE ITS ENTRY INTO CHINESE MARKET ADA MICH AMWAY CORP SAID IT PLANNED AN INITIAL PUBLIC OFFERING WITH AN ESTIMATED MARKET VALUE OF 127 MILLION TO 142 MILLION TO FINANCE ITS ENTRY INTO THE CHINESE MARKET AMWAY SAID IT HAD FILED A REGISTRATION STATEMENT WITH REGULATORS TO OFFER 79 MILLION SHARES IN THE NEW COMPANY AMWAY ASIA PACIFIC LTD AT AN ESTIMATED PRICE OF 16 TO 18 A SHARE AMWAY SAID THE NEW COMPANY HAD ALREADY BEEN APPROVED FOR LISTING ON THE NEW YORK STOCK EXCHANGE AND AUSTRALIAN STOCK EXCHANGE AMWAY SAID IT EXPECTS TO GET THE PUBLIC OFFERING COMPLETED BY YEAR END DEPENDING ON MARKET CONDITIONS THE DEVOS AND VAN ANDEL FAMILIES WHO OWN AMWAY CORP WILL REMAIN MAJORITY OWNERS OF AMWAY ASIA PACIFIC AFTER THE OFFERING ACCORDING TO AN AMWAY SPOKESWOMAN MERRILL LYNCH & CO IS THE LEAD UNDERWRITER FOR THE OFFERING AMWAY ASIA PACIFIC WILL SELL AMWAY CONSUMER PRODUCTS THROUGH SOME 400000 EXISTING INDEPENDENT DISTRIBUTORS IN AUSTRALIA NEW ZEALAND THAILAND TAIWAN MACAU AND HONG KONG THE COMPANY PLANS TO USE THE PROCEEDS FROM THE INITIAL PUBLIC OFFERING TO FINANCE ITS ENTRY INTO THE CHINESE MARKET WHICH IS EXPECTED IN 1995 9311100117 931110 RATTNER'S STAR RISES AS A DEAL MAKER AT LAZARD FRERES BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL WITH MERGER ACTIVITY BOOMING FOR THE FIRST TIME IN FOUR YEARS IT'S NO SURPRISE THAT LAZARD FRERES & CO IS DOING VERY WELL THE SMALL BUT ELITE SECURITIES FIRM SPECIALIZING IN MERGER ADVICE EXPECTS TO REAP RECORD PROFITS THIS YEAR THE CLOUD OVER LAZARD'S FUTURE HAS BEEN THAT ITS BIGGEST RAINMAKER FELIX ROHATYN IS 65 YEARS OLD WITH THE FIRM'S PRINCIPAL OWNER MICHEL DAVIDWEILL BEING 60 THE QUESTION FOR LAZARD HAS BEEN WHAT HAPPENS IF AND WHEN MR ROHATYN SLOWS DOWN THIS YEAR THE CLOUDS ARE PARTING JUST A BIT WITH THE EMERGENCE OF STEVEN RATTNER A 41YEAROLD SPECIALIST IN THE TYPE OF MEDIA MERGERS DRIVING THE CURRENT ACQUISITIONS BOOM IT IS MR ROHATYN WHO IS KEEPING LAZARD IN THE THICK OF THE 10 BILLION TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC BY ADVISING PARAMOUNT CHAIRMAN MARTIN DAVIS BUT IT WAS MR RATTNER WHO GOT LAZARD INTO THE 126 BILLION ACQUISITION OF MCCAW CELLULAR COMMUNICATIONS CORP BY AMERICAN TELEPHONE & TELEGRAPH CO THROUGH HIS RELATIONSHIP WITH CRAIG MCCAW THE COMPANY'S CHAIRMAN TO BE SURE MR ROHATYN'S MANTLE AS LAZARD'S DEAL KING ISN'T SOMETHING THAT CAN BE SIMPLY HANDED OVER HIS RELATIONSHIPS WITH CHIEF EXECUTIVES SPAN A MULTITUDE OF INDUSTRIES AND HE IS SOUGHT AFTER FOR HIS KNOWLEDGE OF GOVERNMENT UNIONS AND FOREIGN POLICY AS MUCH AS FINANCE LAZARD INSIDERS BRISTLE AT ANY SUGGESTION OF A PLAN FOR SUCCESSION SINCE IT IMPLIES SOME POSTROHATYN ERA THEY INSIST IS NOWHERE IN SIGHT STILL MR RATTNER HAS EMERGED AS THE FIRM'S STRONGEST BANKER AFTER MR ROHATYN A FORMER NEW YORK TIMES REPORTER WHO BECAME AN INVESTMENT BANKER IN 1982 AND JOINED LAZARD IN 1989 THE PRESSSAVVY MR RATTNER HAS GAINED A HIGH PROFILE BY HIS INVOLVEMENT NOT ONLY IN HIS OWN DEALS BUT BY SHARING FELIX'S AURA AS A WALL STREET OBSERVER PUTS IT NEWS ARTICLES FREQUENTLY QUOTE MR RATTNER ABOUT MEDIA DEALS AND OCCASIONALLY ON OTHER SUBJECTS RANGING FROM PRESIDENT CLINTON'S VISIT TO MARTHA'S VINEYARD WHERE MR RATTNER HAS A BEACH HOUSE TO THE MERITS OF SKIPPING WORK FOR CHILDBIRTH ALSO AIDED BY HIS MANY APPEARANCES AT MEDIA INDUSTRY CONFERENCES MR RATTNER HAS BECOME BETTER KNOWN THAN RIVAL MEDIA DEALMAKERS AT LARGER FIRMS SUCH AS JEFFREY WILLIAMS AT MORGAN STANLEY & CO OR FREDERIC SEEGAL OF SALOMON BROTHERS INC BUT MR RATTNER DELIVERS MORE THAN JUST GOOD QUOTES MR MCCAW CREDITS MR RATTNER WITH DEVISING THE FINANCING THAT ENABLED MCCAW TO GAIN CONTROL OF LIN BROADCASTING IN A 1989 BIDDING WAR AGAINST BELLSOUTH CORP WE RELY ON FELIX AS BEING THE ULTIMATE COMMON SENSE AND STEVE IS OF COURSE MUCH MORE FOCUSED ON HOW TO MAKE THE DEAL WORK MR MCCAW SAID IN THE PAST TWO YEARS PEOPLE FAMILIAR WITH LAZARD SAY THE INVESTMENTBANKING FEES GENERATED BY MR RATTNER RANK SECOND ONLY TO THOSE BROUGHT IN BY MR ROHATYN AND ARE MORE THAN TWICE THAT OF THE FIRM'S NEXT MOST PRODUCTIVE BANKER MR RATTNER HAS ALSO ASSUMED A MANAGEMENT ROLE AT NEW YORKBASED LAZARD ONE OF THREE AFFILIATED FIRMS THAT ALSO OPERATE IN LONDON AND PARIS HE SERVES AS COHEAD OF INVESTMENT BANKING AND CHAIRS THE MONDAY MEETINGS OF THE FIRM'S PARTNERS WHENEVER MR DAVIDWEILL IS AWAY A FRIEND OF MR RATTNER'S ELLIOT STEIN CHAIRMAN OF CARIBBEAN INVESTMENT CORP WHICH OWNS THE EL VOCERO NEWSPAPER IN PUERTO RICO SAYS OTHER PARTNERS HAVE TOLD ME HE IS THE COMER THERE THE NEXT GUY BUT THE FUTURE ISN'T NEARLY SO CERTAIN SAY STILL OTHERS CLOSE TO THE FIRM MR RATTNER MR ROHATYN AND MR DAVIDWEILL ALL DECLINED TO COMMENT FOR THIS ARTICLE BECAUSE LAZARD GUARDS ITS PRIVACY THE FIRM FEELS NO NEED TO EXPLAIN WHAT MIGHT HAPPEN WHEN MESSRS ROHATYN AND DAVIDWEILL BECOME LESS ACTIVE MR ROHATYN MADE HIS REPUTATION ADVISING CONGLOMERATE OPERATORS IN THE 1960S HE GAINED NATIONAL PROMINENCE FOR SAVING NEW YORK CITY FROM BANKRUPTCY IN THE 1970S AND HE OPPOSED THE USE OF RISKY JUNKBOND FINANCING IN THE 1980S BUT HE HAS LARGELY LIMITED HIS HIGH PROFILE TO CIVIC AFFAIRS NOT DEALMAKING UNLIKE SOME OTHER BANKERS HE HAS ESCAPED BEING TAGGED FOR HIS CLIENTS' MISCUES SUCH AS THE DISASTROUS COMPUTER MERGER BETWEEN SPERRY AND BURROUGHS LAZARD HAS COME IN FOR CRITICISM IN THE PARAMOUNT DEAL FOR ALLOWING ITS CLIENT TO PURSUE A FRIENDLY MERGER WITH VIACOM INC AT 6914 A SHARE WITHOUT RECOGNIZING THAT ANOTHER POTENTIAL BIDDER WAS INTERESTED ENOUGH TO CHALLENGE THE DEAL EIGHT DAYS LATER PARAMOUNT GOT A HOSTILE BID AT 80 A SHARE FROM QVC NETWORK INC AND HAS BEEN DRAGGED THROUGH A MESSY TWOMONTH BRAWL BUT MANY OBSERVERS BLAME PARAMOUNT'S MR DAVIS FOR TRYING TO AVOID A DEAL WITH QVC CHAIRMAN BARRY DILLER SOME BANKERS AT LAZARD HAVE WARNED THAT MR RATTNER COULD BE VULNERABLE TO THE RISKS OF HAVING A HIGH PROFILE MOST OTHER SENIOR LAZARD BANKERS LABOR IN OBSCURITY BY THEIR OWN CHOICE AND THE FIRM'S AS A RESULT DAMON MEZZACAPPA HEAD OF CAPITAL MARKETS AT LAZARD CONCEDES THAT MR RATTNER'S RISE HAS STIRRED A PREDICTABLE AMOUNT OF JEALOUSY AND RESENTMENT MR RATTNER'S TIES TO THE PRESS EXTEND BEYOND REPORTERS HE IS A LONGTIME FRIEND OF ARTHUR SULZBERGER JR PUBLISHER OF THE NEW YORK TIMES WHOM HE GOT TO KNOW WHEN THEY WERE BOTH REPORTERS IN THE TIMES'S WASHINGTON BUREAU MR SULZBERGER DESCRIBES MR RATTNER AS MY BEST FRIEND THEY WORK OUT TOGETHER THREE MORNINGS A WEEK AT A NEW YORK GYM AND RECENTLY IN THE MIDDLE OF THE PARAMOUNT DEAL THEY WENT SCUBA DIVING AT LITTLE CAYMAN ISLAND IN THE CARIBBEAN WITH TWO OTHER FRIENDS MR RATTNER'S RISE AT LAZARD HAS BEEN PROPELLED PARTLY BY THE EXPLOSION OF MEDIA MERGERS SOME BANKERS THERE BELIEVE THAT TO CLAIM THE ROHATYN MANTLE HE MUST BECOME MORE OF A GENERALIST PURSUING MORE INDUSTRIAL CLIENTS SERVING IN GOVERNMENT OR LEADING A NONPROFIT ORGANIZATION ALREADY A DIRECTOR OF WNETTV THE LOCAL PUBLICTELEVISION STATION MR RATTNER IS STEPPING UP HIS WORK FOR OTHER CAUSES WITH ANNUAL PAY THAT COULD TOP 5 MILLION MR RATTNER MIXES THE TRAPPINGS OF WALL STREET WEALTH WITH A FEW REGULARGUY TOUCHES HIS DAKOTA APARTMENT BUILDING COOP OVERLOOKS CENTRAL PARK THE WALLS ARE STUDDED WITH PRINTS BY ANDY WARHOL AND ROY LICHTENSTEIN IN ADDITION TO THE MARTHA'S VINEYARD BEACH HOUSE HE ALSO HAS A COUNTRY HOUSE IN KENT CONN BUT WHILE HE FERRIES HIS WIFE AND FOUR CHILDREN TO THE VINEYARD IN AN EIGHTSEAT CESSNA PLANE WHICH HE FLIES HIMSELF HE ALSO TAKES HIS TWIN BOYS TO NURSERY SCHOOL ON THE CROSSTOWN BUS AND WHEN QVC ANNOUNCED ITS HOSTILE BID FOR PARAMOUNT LATE ONE AFTERNOON HE ATTENDED PARENTS' NIGHT AT THE TWINS' SCHOOL JUGGLING CALLS FROM MR DAVIS AND OTHER PARAMOUNT EXECUTIVES ON A PORTABLE PHONE 9311100116 931110 LAW AUDITORS' LAPSES AT BNLATLANTA HELPED TO HIDE IRAQ LOANS EXMANAGER SAYS BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FAILURES OF OUTSIDE AUDITORS HELPED TO MASK 5 BILLION OF ALLEGEDLY FRAUDULENT LOANS TO IRAQ ARRANGED BY THE ATLANTA BRANCH OF ITALY'S BANCA NAZIONALE DEL LAVORO ACCORDING TO THE BRANCH'S FORMER MANAGER IN TESTIMONY BEFORE THE HOUSE BANKING COMMITTEE CHRISTOPHER DROGOUL THE FORMER MANAGER SAID BANK OFFICIALS IN ROME HAD TACITLY ENCOURAGED HIM TO MAKE AND CONCEAL LARGE LOANS TO IRAQ DURING THE LATE 1980S WHILE OTHER BRANCHES OF THE BANK WERE FORBIDDEN TO MAKE SUCH LOANS THE ENVIRONMENT FOR BNL ATLANTA'S OFFBOOK LOAN OPERATION WAS PERFECT MR DROGOUL TESTIFIED BECAUSE THREE SEPARATE OUTSIDE AUDITS FAILED TO UNCOVER DOCUMENTS THAT WOULD HAVE SHOWN THE TINY BRANCH'S HUGE EXPOSURES TO IRAQ ALGERIA THE SOVIET UNION AND OTHER CLIENTS WHOSE LOANS EXCEEDED THE BRANCH'S AUTHORITY MR DROGOUL WHO HAS PLEADED GUILTY TO THREE COUNTS OF BANK FRAUD WILL BE SENTENCED LATER THIS MONTH HE FACES A MAXIMUM SENTENCE OF FIVE YEARS IN PRISON FOR EACH COUNT IN HIS FIRST TESTIMONY OUTSIDE FEDERAL COURT MR DROGOUL SAID THAT WHEN HE BECAME THE BRANCH'S MANAGER IN 1985 HE WAS AMAZED THAT THE HUGE ITALIAN GOVERNMENTOWNED BANK WANTED TO DO SUCH LARGE BUSINESS OUT OF ATLANTA WITH A STAFF POORLY TRAINED IN INTERNATIONAL FINANCE WE WERE REALLY OUT OF OUR LEAGUE HE SAID BNL HAS INSISTED THAT IT WAS A VICTIM OF A FRAUD HATCHED IN ATLANTA AT YESTERDAY'S HEARING MR DROGOUL ASSERTED THAT GEORGIA BANK EXAMINERS LOOKED AT THE BRANCH'S CREDIT FOLDERS BUT DIDN'T VERIFY THE CONTENTS AN AUDIT BY THE FEDERAL RESERVE HE SAID CONSISTED OF A REVIEW OF THE STATE AUDIT FOLLOWED BY A CUP OF ESPRESSO IN THE MANAGER'S OFFICE AND AN EXAM BY THE BANK'S OUTSIDE AUDITOR KPMG PEAT MARWICK WAS NOTHING MORE THAN AN EXERCISE TO PLACE AN INDEPENDENT AUDITOR'S IMPRIMATUR ON THE BRANCH'S YEAREND RESULTS HE SAID MR DROGOUL SAID HE WAS SURPRISED THAT INCRIMINATING DOCUMENTS WEREN'T UNCOVERED IN NEW YORK OUR ACTIVITIES WOULD HAVE BEEN EXPOSED INSTANTLY BARBARA KRAFT SPOKESWOMAN FOR KPMG CALLED MR DROGOUL'S COMMENTS DESPERATE REMARKS MADE BY A DESPERATE MAN AND SHE ADDED FOR HIM TO QUESTION THE QUALITY OF OUR WORK IS NOTHING SHORT OF PATHETIC REP HENRY GONZALEZ BANKING COMMITTEE CHAIRMAN SAID HE WILL PRESS FOR MORE INFORMATION ABOUT THE BUSH ADMINISTRATION'S DEALINGS WITH IRAQ WHICH USED BNLATLANTA AS A MAJOR SOURCE OF FINANCING FOR PURCHASES OF GRAIN AND US TECHNOLOGY SOME OF WHICH WENT TO IRAQ'S HIDDEN NUCLEARWEAPONS PROGRAM WHILE MR DROGOUL ASSERTED THAT HE DIDN'T RECEIVE KICKBACKS FROM THE BANK'S CLIENTS HE ADMITTED AFTER BEING PRESSED BY REPUBLICAN COMMITTEE MEMBERS THAT HE RECEIVED A 300000 LOAN FROM A TURKISH TRADING COMPANY THAT WAS NEVER REPAID THE COMPANY HE SAID ALSO PAID 100000 TO HIS FATHER FOR UNRELATED SERVICES THE HEARING HELD TO SHOW THE VULNERABILITY OF THE NATION'S BANKING SYSTEM TO OUTSIDE MANIPULATION PRODUCED LITTLE NEW EVIDENCE ABOUT THE BNL AFFAIR EXCEPT FOR MR DROGOUL'S ASSERTION THAT TEXAS BILLIONAIRE ROSS PEROT CALLED HIM IN JUNE 1992 AND OFFERED TO POST BAIL HE SAID MR PEROT HAD TOLD HIM THAT IT WAS UNAMERICAN FOR AUTHORITIES TO BLAME THE WHOLE SCANDAL ON MR DROGOUL FEDERAL JUDGE MARVIN SHOOB HOWEVER DENIED BAIL FOR MR DROUGOUL 9311100115 931110 PEPPERAND SALT OUR COFFEE RESIDUE TO CHANGE A SINGLE LINE DELETING IS DIVINE 9311100114 931110 YIELDS ON CDS END WEEK LITTLE CHANGED NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS CHANGED LITTLE IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS INCHED UP TO 271 FROM 269 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS INCREASED TO 440 FROM 437 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS SLIPPED TO 326 FROM 328 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD ROSE TO 465 FROM 456 ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE EASED TO 281 FROM 283 THE AVERAGE YIELD ON FIVEYEAR JUMBOS ROSE TO 457 FROM 455 ACCORDING TO BANXQUOTE 9311100113 931110 LETTERS TO THE EDITOR A JURY TOO GRAND IN RESPONSE TO THE OCT 25 LETTER FROM KEN MOLBERG CHAIR OF THE DALLAS COUNTY DEMOCRATIC PARTY IN REBUTTAL TO YOUR OCT 1 EDITORIAL LONE STAR JUSTICE AS A FORMER FOREMAN OF THE GRAND JURY HERE IN CUYAHOGA COUNTY CLEVELAND AREA OHIO I WAS ASTONISHED AT THE STATEMENT BY MR MOLBERG THAT A DISTRICT ATTORNEY AND A GRAND JURY OF 12 CITIZENS BELIEVE THAT AS STATE TREASURER MS HUTCHISON BROKE THE LAW AND IS GUILTY OF FELONY OFFENSES A GRAND JURY NEVER MAKES A DECISION REGARDING GUILT OR INNOCENCE OR WHETHER AN INDIVIDUAL BROKE THE LAW BUT RATHER SIMPLY DECIDES WHETHER THERE IS PROBABLE CAUSE FOR COURT ACTION I'M SURE THAT THE RULES OF LAW CANNOT BE THAT DIFFERENT IN THE LONE STAR STATE 9311100110 931110 INSIDE TRACK GILLETTE OFFICIALS CATCH THE CREST AT 60 A SHARE BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL WHEN GILLETTE CO'S STOCK GETS TO 60 A SHARE INSIDERS HAVE A HABIT OF SHAVING THEIR HOLDINGS ALFRED M ZEIEN THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS SHOWN EXCELLENT MARKET TIMING IN THE PAST CATCHING THE STOCK'S PREVIOUS PEAKS AROUND 60 A SHARE IN OCTOBER AND DECEMBER 1992 AND AGAIN IN MARCH AND NOW HE'S SELLING ONCE MORE AS THE STOCK HOVERS AROUND 60 RECENT SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW THAT MR ZEIEN MADE HIS LARGEST SALE OF COMPANY STOCK TO DATE 24650 SHARES OR 8 OF HIS DIRECT HOLDINGS AT 60625 APIECE ON OCT 15 THAT WAS THE DAY THE STOCK HIT ITS 52WEEK HIGH OF 63 YESTERDAY GILLETTE WAS AT 6125 UP 50 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING MR ZEIEN'S 15 MILLION SALE LAST MONTH FOLLOWED A 11 MILLION SALE IN MARCH WHICH AT THE TIME WAS HIS LARGEST EVER HE SOLD 18100 SHARES AT 5950 ON MARCH 22 SOON AFTER THAT SALE THE STOCK SKIDDED TO LOWS AROUND 4850 IN MIDAPRIL THEN BOUNCED UP BRIEFLY TO THE MID50S AND THEN SLID TO ITS 52WEEK LOW OF 47375 IN MIDJUNE BEFORE THAT MARCH SALE MR ZEIEN SOLD 10000 SHARES ON DEC 22 1992 AT 5925 EACH SHORTLY AFTER THAT SALE THE STOCK SLID TO THE LOW 50S AND BACK IN OCTOBER 1992 WHEN THE STOCK FIRST TESTED 60 MR ZEIEN SOLD 10000 SHARES AT JUST ABOVE 59 A SHARE BOTH OF MR ZEIEN'S SALES LAST YEAR WERE RELATED TO THE EXERCISE OF OPTIONS WHEREAS THE 1993 SALES WEREN'T THE FILINGS SHOW GILLETE HAD A 2FOR1 STOCK SPLIT IN EARLY 1992 MR ZEIEN DECLINED TO COMMENT AS DID OTHER INSIDERS WHO HAVE BEEN SELLING COMPANY STOCK RECENTLY AT THE BOSTON PERSONALCARE AND STATIONERY PRODUCTS GIANT DAVE FAUSCH A COMPANY SPOKESMAN SAID MR ZEIEN SOLD FOR PERSONAL FINANCIALPLANNING REASONS AND CHOOSES NOT TO DISCUSS IT HE SAID THAT MR ZEIEN STILL HOLDS CURRENTLY EXERCISABLE OPTIONS TO ACQUIRE 275000 SHARES MR ZEIEN HASN'T BEEN ALONE AMONG COMPANY EXECUTIVES IN CATCHING THE CREST IN LATE OCTOBER EXECUTIVE VICE PRESIDENT ROBERT J MURRAY SOLD 19881 SHARES AT ABOUT 6075 APIECE THE 12 MILLION SALE WHICH INVOLVED THE EXERCISE OF OPTIONS WAS HIS SECOND AND HIS LARGEST EVER MR MURRAY MADE HIS FIRST SALE AS A GILLETTE INSIDER ON NOV 10 1992 SELLING 6511 SHARES AT 60375 EACH WHEN THE SHARES WERE MOVING SIDEWAYS AT ABOUT 60 THAT SALE ALSO WAS OPTIONRELATED SEC DATA SHOW MR MURRAY STILL HOLDS 107200 EXERCISABLE OPTIONS AND LORNE R WAXLAX AN EXECUTIVE VICE PRESIDENT WHO IS RETIRING SOLD 5000 SHARES AT ABOUT 62 EACH THE DATA SHOW WHEN THIS STOCK HITS 60 THESE INSIDERS START LIGHTENING UP SAYS DENNIS LINKER SENIOR RESEARCH ANALYST AT CDA/INVESTNET IN FORT LAUDERDALE FLA THAT'S THE MAGICAL NUMBER IT MUST BE WHERE THEY THINK THE STOCK IS APPROACHING FULL VALUATION THAT LEAVES INVESTORS FACING THE QUESTION OF WHETHER TO BUY THE STOCK AT OR ABOVE 60 A SHARE I RATE THE STOCK A NEUTRAL' ON VALUATION SAYS BONITA AUSTIN AN ANALYST WITH LEHMAN BROTHERS IT'S A GOOD COMPANY WITH VERY SOLID MARKET POSITION AND GOOD EARNINGS BUT THE STOCK'S A LITTLE EXPENSIVE TO HAVE A BUY' ON IT MS AUSTIN EXPECTS THE COMPANY TO POST PERSHARE EARNINGS OF 263 THIS YEAR SLIGHTLY BELOW THE CONSENSUS ESTIMATE OF 265 BUT WELL ABOVE THE 232 EARNED LAST YEAR AT ITS CURRENT PRICE THE STOCK IS TRADING AT 226 TIMES 1993 CONSENSUS EARNINGS ESTIMATES AND AT 194 TIMES 1994 CONSENSUS ESTIMATES OF 310 A SHARE THE LEHMAN ANALYST SEES 1994 EARNINGS COMING IN SLIGHTLY BELOW THE CONSENSUS FIGURE AT 303 A SHARE OTHER ANALYSTS BELIEVE GILLETTE'S STOCK CAN ENJOY A SUSTAINED RISE ABOVE 60 POWERED BY NEW PRODUCT LINES INCLUDING ITS SENSOR EXCEL RAZOR WE THINK IT CAN GET OVER 60 THAT'S WHY WE HAVE IT AS A BUY' SAYS DEEPAK RAJ AN ANALYST WITH MERRILL LYNCH HE SAYS THE COMPANY'S REVENUE HAS BEEN GROWING STRONGLY AS A RESULT OF THE MOST AGGRESSIVE NEW PRODUCT LINE I'VE EVER SEEN AT THIS COMPANY HE NOTES THAT THE SENSOR RAZOR'S PERFORMANCE HAS BOOSTED THE COMPANY'S MARKET SHARE IN BOTH OF ITS KEY MARKETS NORTH AMERICA AND EUROPE INVESTORS LOOKING FOR GUIDANCE MIGHT CONSIDER THAT GILLETTE'S LARGEST INSTITUTIONAL SHAREHOLDER IS WARREN BUFFETT'S BERKSHIRE HATHAWAY INC WITH NEARLY 11 MR BUFFETT WAS UNAVAILABLE TO COMMENT AT BERKSHIRE'S HEADQUARTERS IN OMAHA NEB IT'S SHOE TIME STRIDE RITE CORP DIRECTOR THEODORE LEVITT PROVIDED A MAJOR VOTE OF CONFIDENCE IN THE FOOTWEAR MAKER AND RETAILER WHEN HE SNAPPED UP 100000 SHARES AT 15375 EACH ON OCT 11 AND 12 SEC FILINGS SHOW THE STOCK WAS AT 18375 YESTERDAY DOWN 375 CENTS ON THE BIG BOARD THE 15 MILLION PURCHASE OVERSHADOWS ANY PREVIOUS OPENMARKET BUY BY MR LEVITT WHO IS ACTIVE ON A NUMBER OF CORPORATE BOARDS HIS BIGGEST SINGLE PURCHASE TO DATE IN COMPANIES WHERE HE IS REGISTERED AS AN INSIDER WAS 1000 SHARES THE PURCHASE ALSO COMES AMID INCREASING PURCHASES BY INSIDERS AT OTHER SHOE MANUFACTURERS SOME ANALYSTS HAVE SAID THAT SUCH PURCHASES REFLECT RENEWED BULLISHNESS ABOUT ECONOMICALLY SENSITIVE STOCKS 9311100108 931110 LETTERS TO THE EDITOR A SHOT IN THE DARK ABOUT HOUSTON ZONING TIM FERGUSON'S NOSTALGIA FOR THE WILD WEST CLOUDS HIS PERCEPTION OF WHAT THE NARROWLY DEFEATED NOV 2 HOUSTON ZONING REFERENDUM WAS REALLY ALL ABOUT BUSINESS WORLD OCT 12 HOUSTON'S EFFORTS TOWARD ADOPTION OF A ZONING ORDINANCE IS NOT ABOUT RESTRAINING GUNSLINGERS OR ABOUT TAMING THE WEST IT IS ABOUT THE NEED TO BALANCE EQUALLY IMPORTANT BUT COMPETING INTERESTS IT IS ABOUT STABILITY AND THE ABILITY TO PLAN FOR THE FUTURE FACTORS THAT ARE ESSENTIAL TO ANY MIDDLEAGED BUSINESS INCLUDING THAT BUSINESS THAT WE CALL A METROPOLIS IT IS ABOUT ALLOWING ACCESS TO THE PROCESS OF DECISIONMAKING FOR ALL CITIZENS RICH POOR AND MIDDLE CLASS ZONING WITH ITS REQUIREMENTS FOR PUBLIC HEARINGS AND COMPREHENSIVE PLANS PROVIDES A MECHANISM TO ENSURE THAT THESE THINGS HAPPEN PLEASE REMEMBER MR FERGUSON THAT BEFORE THE LAW CAME TO DODGE CITY WOMEN CHILDREN THE AGED AND THE INFIRM WERE AFRAID TO WALK THE STREETS THE WILD WEST MAY HAVE BEEN A GREAT PLACE IF YOU HAPPENED TO BE THE FASTEST GUN IN TOWN BUT EVEN THOSE INDIVIDUALS BREATHED A GREAT SIGH OF RELIEF WHEN THE LAW FINALLY CAME TO TOWN AND PEOPLE KNEW WHAT WAS EXPECTED OF THEM 9311100107 931110 ECONOMY SAVINGS FROM GOVERNMENT REFORM PLAN ARE VASTLY OVERSTATED CBO STUDY SAYS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CONGRESSIONAL BUDGET OFFICE ESTIMATES THAT THE FIRST INSTALLMENT OF VICE PRESIDENT AL GORE'S MANAGEMENT REFORMS WOULD SAVE LESS THAN 500 MILLION OVER THE NEXT FIVE YEARS ONLY ABOUT ONETWELFTH THE SAVINGS CLAIMED BY THE WHITE HOUSE INDIVIDUALS FAMILIAR WITH THE REPORT SAID THE CBO REPORT TO BE RELEASED SOON IS A BLOW TO THE CREDIBILITY OF THE WHITE HOUSE AT A MOMENT WHEN IT IS FIGHTING VARIOUS CONGRESSIONAL PROPOSALS TO TRIM FEDERAL SPENDING THE ADMINISTRATION HAS CITED THE GORE PROPOSALS AS EVIDENCE OF ITS COMMITMENT TO RESTRAIN GOVERNMENT SPENDING WHEN THE ADMINISTRATION UNVEILED THE GOVERNMENT REFORM AND SAVINGS ACT OF 1993 TWO WEEKS AGO IT SAID THE PLAN WOULD REDUCE FEDERAL SPENDING FROM PROJECTED LEVELS BY ABOUT 9 BILLION OVER SIX YEARS THE FIVEYEAR SAVINGS FROM ITEMS ESTIMATED BY THE CBO WOULD BY WHITE HOUSE CALCULATIONS REDUCE SPENDING BY ABOUT 67 BILLION THE PROPOSALS RANGE FROM CLOSING AGRICULTURE DEPARTMENT FIELD OFFICES TO OFFERING INCENTIVES FOR FEDERAL WORKERS TO QUIT OR RETIRE EARLY BUT THE CBO THE OFFICIAL CONGRESSIONAL SCOREKEEPER IN SUCH MATTERS SAYS THAT TALLY OVERESTIMATES SOME SAVINGS AND OVERLOOKS THE ADDED SPENDING THAT WILL BE NEEDED TO GET THE LONGTERM SAVINGS SUCH AS THE COST OF PENSION BENEFITS PAID OVER THE NEXT FIVE YEARS TO FEDERAL WORKERS WHO WOULDN'T OTHERWISE HAVE RETIRED OTHER WHITE HOUSE PROPOSALS ARE TOO VAGUE TO PUT ESTIMATES ON THE CBO HAS CONCLUDED THE CBO WOULDN'T COMMENT ON THE REPORT ELAINE KAMARCK AN AIDE TO MR GORE SAID IT WOULD BE CRAZY TO SUGGEST THAT THE GORE PACKAGE WOULD SAVE AS LITTLE AS THE CBO ESTIMATES THERE ARE THINGS IN THERE LIKE GETTING RID OF THE DEFENSE DEPARTMENT'S MEDICAL SCHOOL CLOSING IT DOWN THAT HAS A 350 MILLION APPROPRIATION A YEAR IF YOU GET RID OF THAT THAT ALONE PRACTICALLY TAKES YOU TO 500 MILLION SHE SAID CONGRESS TENDS TO ACCEPT CBO ESTIMATES OVER THOSE MADE BY THE WHITE HOUSE A SPOKESMAN FOR THE WHITE HOUSE BUDGET OFFICE WOULDN'T COMMENT ON THE MATTER YESTERDAY SAYING THE CBO HASN'T COMPLETED ITS ESTIMATES YET SEVERAL PROPOSALS TO REDUCE PROJECTED SPENDING ARE EMERGING IN A YEAREND BURST OF SUPPORT FOR AUSTERITY THE WHITE HOUSE IS MOUNTING AN INCREASINGLY STRONG ATTACK ON A PLAN CRAFTED BY REPS TIM PENNY D MINN AND JOHN KASICH R OHIO THAT THEY SAY WOULD SAVE ABOUT 100 BILLION OVER FIVE YEARS A BIPARTISAN GROUP OF SENATORS INCLUDING DEMOCRATS BOB KERREY OF NEBRASKA JOSEPH LIEBERMAN OF CONNECTICUT AND BOB GRAHAM OF FLORIDA AND REPUBLICANS HANK BROWN OF COLORADO AND JUDD GREGG OF NEW HAMPSHIRE ARE TO UNVEIL TODAY A SLIGHTLY MODIFIED VERSION OF THE PENNYKASICH PLAN THAT BY THE SENATORS' TALLY WOULD SAVE ABOUT 118 BILLION REPS BARNEY FRANK D MASS AND CHRISTOPHER SHAYS R CONN YESTERDAY OFFERED A FIVEPOINT PLAN TO SAVE 213 BILLION BY CANCELING THE SPACE STATION REDUCING PLANNED SPENDING ON THE STAR WARS ANTIMISSILE DEFENSE SYSTEM AND OTHER ITEMS 9311100106 931110 LETTERS TO THE EDITOR OCEANOGRAPHERS COOL ON GLOBAL WARMING THE OCT 22 EDITORIAL PAGE PIECE MORE HOT AIR ON GREENHOUSE GASES BY KENT JEFFREYS WAS RIGHT ON TARGET AS FAR AS IT WENT IT PUZZLES ME HOWEVER THAT REPORTERS NEVER SEEM TO CONSULT OCEAN SCIENTISTS ON THE QUESTION OF GLOBAL WARMING AND IT REMAINS VERY MUCH IN QUESTION WHETHER THERE IS ANY SUCH THING AS GLOBAL WARMING I HAVE NEVER FOUND ONE OCEANOGRAPHER WHO ACCEPTS THIS THEORY IN FACT MARINERS HAVE BEEN MEASURING OCEAN TEMPERATURES SINCE THE 1600S AND RECORDING THEM IN LOG BOOKS MANY OF WHICH STILL EXIST SCIENTISTS WHO HAVE REVIEWED AND ANALYZED TENS OF THOUSANDS OF SUCH ENTRIES FIND NO EVIDENCE THAT THE WORLD'S TEMPERATURE HAS CHANGED DURING NEARLY FOUR CENTURIES WHILE I AM NO SEA SCIENTIST I AM A YACHTSMAN SPARE ME THE STRAWHAT TERM BOATER AND SHIP OWNER WHO HAS TAKEN A SERIOUS INTEREST IN OCEANIC WEATHER FOR HALF OF THE CURRENT CENTURY AND I'VE TRIED TO KEEP UP WITH STUDIES OF OCEAN TEMPERATURES AND GLOBAL WARMING WHEN I EDITED AN INTERNATIONAL YACHTING MAGAZINE CALLED THE SKIPPER WE WERE ADVOCATES FOR CLEANER WATER AND AIR LONG BEFORE THE ENVIRONMENT WAS POPULARIZED HOWEVER WHEN I SEE CHICKEN LITTLE SCIENCE I LIKE IT TO BE IDENTIFIED AS SUCH THE GLOBAL WARMING SCARE LIKE THE NUCLEAR WINTER SCARE LOOKS LIKE CHICKEN LITTLE STUFF TO ME 9311100105 931110 LETTERS TO THE EDITOR BOLD MARKETING TOOK THEIR BREATH AWAY YOUR FASCINATING OCT 13 CORPORATE FOCUS ON THE ACQUISITION OF ABSOLUTE VODKA MARKETING RIGHTS BY SEAGRAM'S BRINGS TO MIND THE REMARKABLE STORY OF THE BURGEONING OF THE VODKA MARKET IN THE US AT THE HEIGHT OF THE COLD WAR IT WAS IN THE 1950S THAT HEUBLEIN DECIDED TO MARKET A BRAND CALLED SMIRNOFF NOT ONLY A RUSSIAN NAME BUT WHAT SOUNDED TO MOST AMERICANS LIKE A RUSSIAN PRODUCT THE BRAND WAS MADE NOT FROM THE DISTILLATION OF POTATOES LIKE THE SOVIET PRODUCT BUT FROM A DISTILLATION PROCESS THAT GAVE OFF A NOBREATHDETECTED ODOR OR TASTE NOT ONLY DID IT TAKE MARKETING GUTS TO LAUNCH SUCH A BRAND BUT THE NAME OF THE FIRST MIXED DRINK USING VODKA WAS THE MOSCOW MULE THUS FLYING IN THE FACE OF WHAT ANY GOOD MARKETING MAN WOULD TELL YOU NOT TO DO THE MOSCOW MULE WAS LAUNCHED ON SUNSET BOULEVARD IN HOLLYWOOD CALIF AT A BAR CALLED THE COCK 'N' BULL THE SLOGAN IT LEAVES YOU BREATHLESS AN OPEN INVITATION TO RETURN TO YOUR OFFICE AND FACE THE BOSS WITH NO CONSEQUENCES AT THE TIME SALES OF SMIRNOFF WERE 50000 CASES LAST YEAR THE SALE OF THE BRAND WAS 14 MILLION CASES SOMEBODY SHOULD SALUTE THE PEOPLE WHO HAD THE VISION TO SEE THE GIANT GROWTH POSSIBILITIES OF VODKA BOTTOMS UP 9311100104 931110 LEISURE & ARTS BEAUTIFUL' AMERICAN ABROAD BY KAREN SWENSON PHIMAI THAILAND THE FIRST TIME I CAME TO THIS CENTER OF ANCIENT KHMER RUINS ON THE NORTHEASTERN BORDER WITH CAMBODIA I WENT BY BUS FROM KORAT AND RECEIVED FROM MY SEAT PARTNER A YOUNG WOMAN A PAIR OF MICKEY MOUSE BARRETTES IN EXCHANGE FOR THE BALLOON I GAVE HER SON I STAYED AT A 40ROOM HOTEL IN TOWN WHERE I WAS THE ONLY INHABITANT MY ROOM WAS DECORATED WITH PALE GECKOES AND A SUFFICIENCY OF MOSQUITOES TO KEEP THEM ALL IN PLUMP HEALTH THERE WAS A CHAMBER POT UNDER THE BED AND A LIST OF REGULATIONS ON THE DOOR WHICH INCLUDED RESERVATION OF NOISES WILL BE APPRECIATED A YOUNG WOMAN WHO WORKED AT THE RESTAURANT NEXT DOOR STOPPED ME AND ASKED A RAPID FIRE SERIES OF QUESTIONS WHERE YOU LIVE YOU TRAVEL LONE YOU SPEAK THAI WHEN I ANSWERED NO NOT EVEN A LITTLE BIT SHE LOOKED UP AT ME AND SAID YOU BEAUTIFUL I RECOMMEND THIS PLOY TO TOURIST BUREAUS THAT WOULD LIKE TO HAVE RETURN BUSINESS AT ONE END OF PHIMAI IS A PIECE OF THE OLD 11THCENTURY WALL AND A GATE THE LARGE SQUARE BLOCKS OF DEEP RED LATERITE ALMOST A MAHOGANY COLOR WERE A RICH SETTING FOR THE DOZENS OF GOLDEN DRAGONFLIES SKIMMING ABOUT THE DARK STONES BEFORE THE SANCTUARY IS AN AREA WHICH WAS IDENTIFIED AS A HOSPITAL BECAUSE OF SANDSTONE HERB GRINDERS FOUND THERE HEAVY BLOCKS OF SQUAT STRONG PILLARS LEAD UP TO THE MAIN PRANG OR TOWER WHICH IS ADORNED WITH BOTH DELICATE LITTLE HUMAN FIGURES THAT DANCE IN THE KHMER FRIEZES AND DAINTY FESTOONS OF CARVED VEGETATION THAT JUXTAPOSITION OF FLUIDITY AND SOLIDITY IS WHAT FASCINATES IN KHMER ART AT ONE POINT I LOOKED OUT FROM INSIDE THE SANCTUARY WHICH IS BOTH HINDU AND BUDDHIST IN ITS ICONOGRAPHY TO SEE A GROUP OF VISITING MONKS IN THEIR BRILLIANT YELLOW ROBES FRAMED BY THE DARK STONE THERE WERE A NUMBER OF WINDOWS IN THE SHRINES WHICH RETAINED THE GRACEFULLY SHAPED DOWELS WHICH THE KHMERS PLACED BETWEEN LOWER AND UPPER LINTEL BUT ALWAYS THE MOST SPECTACULAR PART IS THE LINTELS ABOUT THE DOORS WHICH RISE IN A SERIES OF STONE FLAMES SURROUNDING THE CENTRAL FIGURE OF A HINDU GOD OR A SCENE FROM HINDU MYTHOLOGY PHIMAI WAS AT THAT TIME ONLY PARTIALLY RECONSTRUCTED BUT THOUGH CARVED AND UNCARVED BLOCKS LAY ABOUT HELTERSKELTER IN THE GRASS IT DID NOT DETRACT ONE IOTA FROM THE MAGNIFICENCE OF THE MONUMENT IT SEEMED THAT THE PRINTED GUIDE I PURCHASED WAS QUITE RIGHT IN ASSERTING THAT THE MAIN PRANG IS THE MOST BEAUTIFUL AND BIGGEST MARVELOUS ONE AMONG THE STONE SANCTUARIES IN NORTHEAST OF THAILAND THAT NIGHT THERE WAS A MONSOON OF THE VARIETY THAT SUGGESTS SOME OF THE LARGER HINDU GODS ARE HAVING A HOEDOWN ON THE ROOF WHICH ITSELF IS IN IMMINENT DANGER OF COLLAPSING WHEN THE NEXT DAY THE SUN APPEARED AS WAN AS AN INVALID RECOVERING FROM A LONG ILLNESS I TOOK THE BUS BACK TO BANGKOK MY SECOND VISIT TO PHIMAI WAS WITH A FRIEND WHO HAD A CAR WE WENT AS WELL TO PHANOM RUNG THE PRIDE AND JOY OF THAI ARCHAEOLOGICAL RESTORATION EFFORTS AND TO PHANOMWAN AND MUAN TOM WHICH ARE SMALL DILAPIDATED TEMPLES ON DIRT ROADS WE STAYED IN KORAT IN A HOTEL WHERE I FOUND CANDY WRAPPERS AND A STRAY CHILI POD ON MY FLOOR WHILE MY FRIEND STAYED IN A WINDOWLESS ROOM WHICH TO COMPENSATE HAD A HUGE PHOTOGRAPHIC MURAL COVERING ONE WALL OF A COLORADO DELL IN AUTUMN PHIMAI IS NOW FULLY RESTORED BUT THE JOB WAS NOT AS GOOD AS PHIMAI DESERVES NOR AS WELL DONE AS THE RESTORATION AT PHANOM RUNG SOME OF THE CARVINGS ARE IN THE WRONG PLACES OR HAVE BEEN INSTALLED UPSIDE DOWN IT IS AS THOUGH THERE WAS NO SUPERVISION AND WORKMEN TOOK ANY OLD STONE THAT WAS AT HAND AND PLACED IT IN THE FIRST CONVENIENT APERTURE PHIMAI STILL HAS ITS MYSTIQUE HOWEVER DESPITE LITTLE BOOTHS OUTSIDE THE RUINS THAT SELL CERAMIC JEWELRY AND OTHER TOURIST TRINKETS PHANOMWAN IS SIX OR SEVEN KILOMETERS OFF THE MAIN HIGHWAY THROUGH A SERIES OF LITTLE VILLAGES AT ONE OF WHICH THE MEN WERE ASSEMBLED SITTING IN THEIR BEST CLOTHES CROSSLEGGED ON BAMBOO MATS FOR A FUNERAL WHILE OTHER MEN PLAYED GONGS DRUMS AND VARIOUS THAI STRINGED INSTRUMENTS WHEN WE ARRIVED AT PHANOMWAN WE COULD SEE THE SHIMMERING ORANGE ROOF OF A TEMPLE IN THE DISTANCE ACROSS SOME PADDY FIELDS THE SHRINE WAS ALL IN A HEAP BUT STILL RETAINED AN AURA OF AWE WITH MONKS IN THEIR ORANGE ROBES THE SAME SHADE AS THE ROOF OF THEIR TEMPLE WANDERING ABOUT LIKE BRILLIANT BUTTERFLIES IN THE SANCTUARY A BUDDHA FLAKED GILT FROM THE PATCHES OF GOLD LEAF WORSHIPERS HAD RUBBED ON HIM WHILE THE SMOKE OF INCENSE SPIRALED UP OVER THE PETALS OF FLOWERS SET BEFORE HIM PHANOWAN MADE AN UNFAIR CONTRAST WITH PHANOM RUNG BECAUSE PHANOWAN IS STILL ALIVE THE SITE OF PHANOM RUNG IS CONSIDERABLY MORE DRAMATIC THAN ANY OF THE OTHERS IT IS ON TOP OF A HILL YOU CAN SEE THE MAIN TOWER THE PRANG PEEPING OUT FROM AMONG THE TREES LOOKING RATHER LIKE A TREE ITSELF WITH ITS BEEHIVE SHAPE THIS HILLTOP PROFILE IS A BIT SPOILED BY A LINE OF BRIGHT ORANGE TELEPHONE TOWERS WITH DISCS ON THEM ONCE INSIDE THE PRECINCTS OF THE SHRINE YOU STAND ON THE TOP OF ONE HILL AND LOOK DOWN AT THE NAGA RAILINGS NAGAS ARE SACRED WATER SNAKES WHICH LEAD UP TO A SERIES OF PLATFORMS ENDING IN THE MAIN SHRINE WITH ITS BEEHIVE TOWER THE REPLACED PARTS HAVE BEEN DONE IN CAST CONCRETE SO THAT YOU CAN TELL WHICH IS WHICH A MISSING LINTEL WHICH WAS RECOVERED RECENTLY FROM A MUSEUM IN CHICAGO IS NOW IN ITS HOME AGAIN PHANOM RUNG IS AN IMPRESSIVE MONUMENT BEAUTIFULLY RECONSTRUCTED BUT INEVITABLY IT HAS A COLD MUSEUM QUALITY TO IT MUANG TOM IS ANOTHER SMALL RUIN WITH PONDS FULL OF WATER LILIES AND SMALL BROWN BOYS SLITHERING ABOUT AMPHIBIOUS AS FROGS THE MAIN SANCTUARY HAS PARTIALLY COLLAPSED SO THAT WHEN YOU LOOK ABOVE YOUR HEAD IT IS SCARY TO SEE THE V FORMED BY TWO PILLARS WHICH HAVE CONVERGED BUT IT IS PLEASANT TO WANDER AMONG THE RUINS BULGING BLOCK WALLS OR DOWELED WINDOWS STANDING ALONE UNDER TREES WHICH DAPPLE THE STONE WITH SHADE AND AT ANY MOMENT YOU FEEL SOMEONE MAY COME AND TELL YOU YOU ARE BEAUTIFUL MS SWENSON IS A POET IN BROOKLYN NY 9311100103 931110 WHO'S NEWS ROCKWELL PICKS SMITH FOR NEW COMMERCIAL DEFENSE PROJECT POST SEAL BEACH CALIF ROCKWELL INTERNATIONAL CORP CREATED A NEW CORPORATE OPERATIONS OFFICE RESPONSIBLE FOR THE COMPANY'S WORLDWIDE COMPUTING OPERATIONS MANUFACTURING PROCESSES AND QUALITY CONTROL THAT WILL REPORT DIRECTLY TO CHAIRMAN DONALD R BEALL PAUL SMITH 53 YEARS OLD FORMERLY VICE PRESIDENT AND GENERAL MANAGER OF ROCKWELL'S TACTICAL SYSTEMS DIVISION IN DULUTH GA WAS NAMED TO HEAD THE NEW OFFICE AND ALSO WILL SERVE AS A MEMBER OF ROCKWELL'S SENIOR MANAGEMENT COUNCIL THE FUNCTIONS MR SMITH WILL OVERSEE CUT ACROSS COMMERCIAL AND DEFENSE OPERATIONS THE NEW OFFICE ACCORDING TO MR BEALL IS DESIGNED TO BETTER LEVERAGE INFORMATIONTECHNOLOGY ADVANCEMENTS INTO OUR BUSINESS PROCESSES AT THE SAME TIME ROCKWELL SAID IT IS CHANGING THE NAME AND REFOCUSING A PORTION OF ITS AEROSPACE AND DEFENSE OPERATIONS WITH THE AIM OF LANDING MORE NONMILITARY GOVERNMENT BUSINESS TO BEGIN WITH THE PART OF THE COMPANY THAT DEALS ALMOST ENTIRELY WITH ANTIBALLISTIC MISSILE DEFENSE WORK WILL BE CALLED THE SYSTEMS DEVELOPMENT CENTER RATHER THAN THE STRATEGIC DEFENSE CENTER A ROCKWELL SPOKESMAN SAID THE CENTER WILL CONCENTRATE ON ATTRACTING MORE NONDEFENSE CONTRACTS SUCH AS WORK FOR THE TRANSPORTATION DEPARTMENT AND THE DRUG ENFORCEMENT ADMINISTRATION AS WELL AS FOR CIVILIAN AGENCIES ROCKWELL ALSO SAID THAT THAD N KUENZ 52 WAS NAMED CORPORATE VICE PRESIDENT IN CHARGE OF CONTRACTS AND SUBCONTRACTS SUCCEEDING FRED P ZIMMER WHO IS RETIRING MR ZIMMER HAD BEEN VICE PRESIDENT FOR CONTRACTS PRICING AND MATERIALS 9311100102 931110 INTERNATIONAL SG WARBURG PROFIT TRIPLED IN FIRST HALF ON STRONG MARKETS LONDON SG WARBURG GROUP PLC SAID ITS EARNINGS TRIPLED DURING ITS FISCAL FIRST HALF THANKS TO AN UPTURN IN INVESTMENT BANKING ACTIVITY AND BOOMING WORLD FINANCIAL MARKETS PRETAX PROFIT AT THE UK INVESTMENT BANK ROSE TO 1488 MILLION 2204 MILLION IN THE FIRST HALF ENDED SEPT 30 FROM 512 MILLION IN THE SAME PERIOD A YEAR EARLIER NET INCOME AFTER TAXATION AND MINORITY INTERESTS ROSE TO 903 MILLION FROM 255 MILLION GIVING EARNINGS PER ORDINARY SHARE OF 418 PENCE AGAINST 119 PENCE ONE YEAR EARLIER THE RESULT WAS AT THE TOP END OF ANALYSTS' FORECASTS FOR ITS ENTIRE 199293 FINANCIAL YEAR WARBURG HAD REPORTED PRETAX PROFIT OF 1482 MILLION AND PERSHARE NET OF 396 PENCE WARBURG SHARES ROSE FOLLOWING THE ANNOUNCEMENT BUT THEN FELL BACK APPARENTLY ON PROFITTAKING THE STOCK CLOSED IN LONDON TRADING YESTERDAY AT 857 PENCE DOWN FROM 877 PENCE WARBURG SAID ITS EARNINGS FROM FEES AND COMMISSIONS ROSE 42 DURING THE LATEST REPORTING PERIOD TO 3025 MILLION EARNINGS FROM MARKETMAKING AND TRADING ON THE BANK'S OWN ACCOUNT JUMPED MORE THAN THREEFOLD TO 141 MILLION WHILE NET INTEREST INCOME FELL 175 TO 298 MILLION OPERATING COSTS MEANWHILE ROSE 41 TO 341 MILLION IN PART REFLECTING HIGHER BONUSES PAID AS INCENTIVES TO EMPLOYEES OVERALL EARNINGS ON THE GROUP'S INVESTMENT BANKING OPERATIONS ROSE MORE THAN FIVEFOLD TO 1036 MILLION BEFORE INTEREST ON LOAN CAPITAL AND TAXATION IN THE CORRESPONDING YEAREARLIER PERIOD INVESTMENT BANKING OPERATIONS HAD PRODUCED PROFIT OF 204 MILLION 9311100101 931110 MEXICO RETREATS FROM DEFENSE OF PESO CURRENCY DECLINES 41 AGAINST DOLLAR BY CRAIG TORRES AND PAUL B CARROLL STAFF REPORTERS OF THE WALL STREET JOURNAL MEXICO'S CENTRAL BANK UNWILLING TO DEFEND THE PESO AGAINST SPECULATORS WHO ARE BETTING AGAINST THE NORTH AMERICAN FREE TRADE AGREEMENT ABANDONED LONGHELD STABILIZATION LEVELS FOR THE MEXICAN CURRENCY AND SENT IT TUMBLING THE PESO FELL ALMOST 5 IN CHAOTIC TRADING BEFORE RECOVERING SLIGHTLY TO CLOSE OFF 41 AGAINST THE DOLLAR YESTERDAY THE CENTRAL BANK'S MOVE WHICH TOOK THE CURRENCY MARKET BY SURPRISE CAME AS TRADERS AND INVESTORS FLED THE PESO IN RECENT DAYS PUTTING THE MEXICAN CURRENCY UNDER HEAVY SELLING PRESSURE INVESTORS HAVE GROWN INCREASINGLY FEARFUL THAT THE US CONGRESS WILL DEFEAT NAFTA IN A CRUCIAL VOTE NEXT WEDNESDAY THE MEXICAN GOVERNMENT'S ABANDONMENT OF THE INTERNAL MANAGEMENT BAND CAPPED A WEEKLONG BATTLE BETWEEN BANCO DE MEXICO AND PESO SELLERS IN WHICH THE CENTRAL BANK SPENT AN ESTIMATED 4 BILLION ATTEMPTING TO DEFEND THE CURRENCY AT AROUND 3152 PESOS A DOLLAR TRADERS SAID TO DEFEND THE CURRENCY FROM A FURTHER ATTACK AT THE CRITICAL 33092 PESOS PER DOLLAR LEVEL THE CENTRAL BANK ALLOWED MEXICAN OVERNIGHT INTEREST RATES TO SOAR TO 20 YESTERDAY SUCH HIGH INTEREST RATES ARE EXPECTED TO ATTRACT FOREIGN INVESTORS BACK INTO PESO SECURITIES IN LATE TRADING YESTERDAY THE PESO CHANGED HANDS AT 328 DOWN FROM 315 PESOS PER DOLLAR THE PREVIOUS DAY FOR THE YEAR THE PESO IS NOW DOWN 546 THE PESO'S TUMBLE WILL RESULT IN SHORTTERM LOSSES OR LOWER RETURNS FOR US INVESTORS WHO HAVE POURED BILLIONS OF DOLLARS INTO MEXICAN TREASURY BILLS AND MEXICAN STOCKS OR INTO MUTUAL FUNDS THAT INVEST IN THOSE SECURITIES ALSO US AND MEXICAN BANKS AND BROKERS HOLDING INVENTORIES OF MEXICAN SECURITIES ALSO TOOK BIG LOSSES TRADERS SAID ALL TOLD FOREIGN INVESTORS HOLD ABOUT 55 BILLION IN PESODENOMINATED SECURITIES WHILE NOT AN OFFICIAL TRADING RANGE THE CENTRAL BANK'S INTERNAL MANAGEMENT BAND OF 3152 TO 3092 PESOS PER DOLLAR WAS AN IMPORTANT DAILY SIGNAL TO THE CURRENCY MARKET ABOUT WHERE THE CENTRAL BANK WOULD BUY AND SELL PESOS TO SMOOTH DAILY FLUCTUATIONS THEY DIDN'T WANT TO SPEND ANY MORE MONEY DEFENDING THE CURRENCY AT A TECHNICAL LEVEL SAYS JAMES NASH AN ECONOMIST AT JP MORGAN THEY SET A LIMIT ON HOW MUCH THEY WANTED TO SPEND DEFENDING THE INTERNAL BAND THEY WENT TO THAT LIMIT AND FOLDED NOW THE PESO IS FREE TO TRADE IN THE BROAD RANGE STIPULATED BY THE MEXICAN GOVERNMENT IN A PACT MADE WITH BUSINESS AND LABOR LEADERS EVERY YEAR TO STIMULATE THE ECONOMY AND HOLD DOWN INFLATION THIS BROADER BAND ALLOWS FOR THE PESO TO TRADE AS LOW AS 3309 PESOS PER DOLLAR AND AS HIGH AS 3056 PESOS PER DOLLAR TODAY IN ADDITION THE TOP OF THE BAND RISES IN A CRAWLING DEVALUATION OF 004 CENTAVOS PER DAY ONE TOPLEVEL MEXICAN GOVERNMENT OFFICIAL WHO DECLINED TO BE IDENTIFIED CONFIRMED THAT THE CENTRAL BANK YESTERDAY TOLD TRADERS THE PESO COULD MOVE TO THE LIMITS OF THE BROADER BAND THE DECISION WAS MADE AT THE HIGHEST LEVELS OF THE MEXICAN GOVERNMENT THE OFFICIAL CONFIRMED BANCO DE MEXICO THE CENTRAL BANK DECLINED TO COMMENT HOWEVER A MEXICAN FINANCE OFFICIAL FAMILIAR WITH THE CENTRAL BANK'S OPERATIONS EXPLAINED FOR MANY MONTHS THE SITUATION IN THE EXCHANGE MARKET WAS VERY PEACEFUL THAT'S WHY THE OPERATIONAL OR INTERNAL BAND WAS NARROW THE CIRCUMSTANCES OF THE MARKET ALLOWED IT NOW THAT THE CIRCUMSTANCES HAVE CHANGED WE HAVE OPENED THE RANGE TO CONFORM WITH THE CEILING AND THE FLOOR OF THE BROADER BAND THE US GOVERNMENT APPROVED OF MEXICO'S MOVE THE US BELIEVES THAT MEXICO IS PURSUING SOUND ECONOMIC POLICIES TREASURY SECRETARY LLOYD BENTSEN SAID IT IS APPARENT HOWEVER THAT FINANCIAL MARKETS ARE RESPONDING TO THE UNCERTAINTIES REGARDING NAFTA THE MEXICAN AUTHORITIES HAVE RESPONDED WITHIN THE FRAMEWORK OF THEIR CURRENT APPROACH TO FOREIGNEXCHANGE MARKETS BY INTRODUCING TEMPORARILY GREATER FLEXIBILITY IN THE PESOEXCHANGE RATE WE BELIEVE THIS IS AN APPROPRIATE STEP IN CURRENT CIRCUMSTANCES THE PESO'S TUMBLE SHOCKED MANY US INVESTORS WHO DIDN'T EXPECT THE CURRENCY TO MOVE UNTIL AFTER THE CONGRESSIONAL VOTE ON NAFTA ON NOV 17 EVEN SO MANY STRATEGISTS AT THE GIANT MUTUALFUND COMPANIES SAID THEY ARE HOLDING ON TO THEIR PESO SECURITIES FOR NOW SERGIO SANCHEZ GARCIA HEAD OF RESEARCH AT MEXICAN BROKER INVERLAT SAID THE CENTRAL BANK'S SURPRISE MOVE WAS A SHREWD TACTICAL MEASURE AHEAD OF LAST NIGHT'S DEBATE BETWEEN NAFTA FOE ROSS PEROT AND VICE PRESIDENT AL GORE BASICALLY THE CENTRAL BANK LET THE PESO FALL BEFORE MORE SPECULATORS COULD SELL THE CURRENCY HE EXPLAINED IF MR PEROT EMERGES AS THE CLEAR VICTOR IN THE DEBATE MR SANCHEZ GARCIA SAID THEN THERE WOULD HAVE BEEN AN INTENSE BOUT OF SPECULATIVE SELLING AGAINST THE PESO TODAY RATHER THAN EXHAUST ITS MORE THAN 20 BILLION IN RESERVES DEFENDING A TECHNICAL RANGE THE MEXICAN CENTRAL BANK ALLOWED THE PESO TO FALL SO IT COULD DEFEND THE CURRENCY AT THE MORE IMPORTANT LEVEL OF 33 PESOS PER DOLLAR IF MR GORE WINS THE DEBATE THE PESO COULD STABILIZE UNTIL NEXT WEDNESDAY'S NAFTA VOTE AMONG THE SELLERS IN RECENT DAYS WERE US INVESTORS BACKING OUT OF MEXICAN STOCKS AND TREASURY BILLS IN ADVANCE OF THE NAFTA VOTE MEXICAN BANKS WHICH WERE RUNNING CURRENCY BETS AND MANY INDIVIDUAL MEXICANS TRYING TO PROTECT THEIR SAVINGS BY SELLING PESOS AND BUYING DOLLARS TRADERS SAID THE PESO MARKET WAS EXTREMELY VOLATILE YESTERDAY WITH INDICATIONS OF BUYING BY THE CENTRAL BANK AND MUCH CONFUSION ABOUT A NEW TRADING RANGE FOR THE CURRENCY MEXICAN STOCK PRICES WHICH HAVE FALLEN IN RECENT DAYS ROSE 13 IN LOCAL CURRENCY TERMS BUT THOSE INVESTORS CONVERTING THEIR RETURNS BACK INTO DOLLARS EVEN WITH THE MARKET'S GAIN LOST A NET 234 YESTERDAY AND ON THE YEAR US INVESTORS SAW THEIR DOLLAR RETURNS IN THE BOOMING MEXICAN MARKET FALL FROM 1446 LAST WEEK TO 595 YESTERDAY DUE TO A DECLINE IN STOCK PRICES AND THE PESO MERRILL LYNCH FIGURES BUT SOME OF THE LARGEST US MONEY MANAGERS SAID THEY ARE STANDING PAT FOR NOW WE ARE NOT SELLING WE ARE HIGHLY CONFIDENT IN THE CENTRAL BANK'S ABILITY TO LIVE UP TO THEIR COMMITMENT TO DEFEND THE UPPER BAND SAID LINCOLN ANDERSON DIRECTOR OF ECONOMIC ANALYSIS AT FIDELITY MANAGEMENT & RESEARCH THE BIG MUTUAL FUND COMPANY WAYNE LYSKI EXECUTIVE VICE PRESIDENT AT ALLIANCE CAPITAL MANAGEMENT SAYS WHEN THE DUST SETTLES HE EXPECTS THE PESO TO TRADE 2 TO 3 BELOW ITS LEVEL AT THE START OF THE YEAR EVEN SO ALLIANCE IS MAINTAINING ITS INVESTMENTS OF ABOUT 1 BILLION IN PESO SECURITIES THE SENIOR MEXICAN OFFICIAL NOTED THAT THE PESO HAD RECOVERED A LITTLE AS THE DAY PROGRESSED AND SAID THAT IT HAD OCCURRED WITHOUT GOVERNMENT INTERVENTION HE ATTRIBUTED THE RECOVERY TO THE FAVORABLE VOTE ON NAFTA BY THE HOUSE WAYS AND MEANS COMMITTEE HE SAID ESTIMATES OF 4 BILLION IN INTERVENTION WERE TOO HIGH THE SENIOR OFFICIAL DREW ENCOURAGEMENT FROM THE FACT THAT LATE IN THE DAY THE MEXICAN GOVERNMENT REPORTED INFLATION OF ONLY 04 FOR OCTOBER THE LOWEST MONTHLY RATE IN 25 YEARS THE GOVERNMENT'S ABILITY TO CUT INFLATION TO SINGLE DIGITS HAS BEEN A MAJOR REASON FOR THE RELATIVE STABILITY AND STRENGTH OF THE PESO THIS YEAR DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9311100100 931110 LEISURE & ARTS BOOKSHELF A BIOGRAPHY OF FRANCE'S OUTLAW LAUREATE BY RICHARD LOCKE SUMPTUOUS OBSESSIONS MARK THE WORK OF JEAN GENET THE ORPHAN THIEF HOMOSEXUAL BEGGAR PROSTITUTE AND CONVICT WHO WAS PROCLAIMED THE GREATEST WRITER OF THE MODERN ERA IN 1943 BY JEAN COCTEAU THEN CANONIZED IN 1952 BY JEANPAUL SARTRE AND TRANSFORMED IN 1970 BY THE BLACK PANTHERS AND THE PLO INTO A PERIPATETIC FRIEND OF THE DISPOSSESSED TODAY SEVEN YEARS AFTER HIS DEATH AT 75 WITH HIS REPUTATION MUCH MORE SECURE THIS MOST DISCUSSED FRENCH WRITER OF THE 20TH CENTURY WITH PROUST AND CELINE IS THE SUBJECT OF AN ESTIMABLY THOROUGH CANDID BALANCED ADMIRING BUT UNAPOLOGETIC BIOGRAPHY GENET BY EDMUND WHITE 728 PAGES KNOPF 35 IS THE RICH FRUIT OF SIX YEARS' LABOR BY A NOTABLE AMERICAN NOVELIST WHO SEEMS PERFECTLY AT EASE AS HE PRESENTS THE LIFE AND WORK OF THE MOST MELODRAMATIC FRENCH LITERARY FIGURE SINCE RIMBAUD IN GENET'S ABUNDANT WORKS NOVELS PLAYS POEMS FILMSCRIPTS ESSAYS MEMOIRS HUMAN EXPERIENCE IS PORTRAYED AS A SERIES OF ETERNAL MYTHOLOGICAL CONFLICTS THEATRICALLY DECLAIMED THIS VISION OF INTERDEPENDENT REVERSIBLE BUT MUTUALLY REENFORCING PAIRS OF ABSOLUTES GOOD AND EVIL HIGH AND LOW SACRED AND PROFANE IS ULTIMATELY STATIC CONSERVATIVE DESPITE ITS OSTENSIBLY AMORAL OR REVOLUTIONARY CONTENT AND SORDID GLAMOUR GENET'S IS A LURID RIGIDLY MANICHAEAN AND ALMOST EXCLUSIVELY MALE UNIVERSE OF MELODRAMATIC DOUBLES SAINT AND SINNER THIEF AND COP GAY AND STRAIGHT BLACK AND WHITE BUT GENET'S GREAT LITERARY GIFT IS TO EXHIBIT THESE GARISH CARDBOARD CONFLICTS AS ANIMATED CUBIST COLLAGES HIS WORKS ARE FORMALLY COMPLEX AT ONCE REALISTIC AND MYTHOPOETIC CONFESSIONAL AND CEREMONIAL NARRATIVE BUT HOSTILE TO MERE ANECDOTE LIKE SWIFT GENET EXAMINES THE PARTICULARS OF HIS FEROCIOUS UNIVERSE WITH EXCEPTIONAL MAGNIFYING POWER GENIUS IS DESPAIR OVERCOME BY RIGOR HE DECLARED MR WHITE METICULOUSLY RECREATES GENET'S EARLY YEARS AS PUBLIC ASSISTANCE WARD NUMBER 192102 BORN IN A PARISIAN WELFARE CLINIC ABANDONED AT SEVEN MONTHS THEN SENT AS A FOSTER CHILD TO LIVE WITH A CARPENTER AND HIS FAMILY IN A BACKWOODS FARMING TOWN THERE HE BECAME A STUDIOUS SISSY FIRST IN HIS CLASS WHO AT 13 WAS SENT TO A PARIS TECHNICAL SCHOOL RAN AWAY AND SOON WAS IMPRISONED AS A PETTY THIEF AT A NOTORIOUSLY REPRESSIVE AGRICULTURAL REFORMATORY HE BECAME THE MOST SOUGHTAFTER CATAMITE IN THE SCHOOL AT 18 HE JOINED THE ARMY WENT TO SYRIA AND MOROCCO REENLISTED SEVERAL TIMES AND DESERTED HE BUMMED THROUGH ITALY AND EASTERN EUROPE PLUNGED INTO THE CRIMINAL AND GAY SUBCULTURE OF MONTMARTRE AS A THIEF AND PROSTITUTE AND SPENT NEARLY FOUR YEARS IN FRENCH PRISONS BETWEEN 1937 AND 1944 CONTRARY TO LEGEND HIS CRIMINAL CAREER SEEMS PETTY INDEED HE USUALLY STOLE BOLTS OF CLOTH OR FANCY BOOKS FOR RESALE BUT IN JAIL AND OUT STARVING SCRAMBLING READING DOSTOYEVSKY PROUST RIMBAUD AND MALLARME HE WAS ALWAYS WORKING ON POEMS PLAYS FILMSCRIPTS NOVELS HE PAID FOR HIS FIRST PUBLICATION A 13PAGE POEM HIMSELF HE WORKED AT A BOOKSTALL OPPOSITE NOTRE DAME AND IN 1943 SOME CUSTOMERS INTRODUCED HIM TO COCTEAU THE REST IS HISTORY HIS FIVE NOVELS THE FIRST OUR LADY OF THE FLOWERS BROUGHT THE DRAG QUEEN INTO LITERATURE WERE WRITTEN IN AN EXTRAORDINARY BURST OF ENERGY BETWEEN 1942 AND 1948 A PRESIDENTIAL PARDON IN 1949 KEPT HIM OUT OF JAIL SARTRE'S TOME SAINT GENET ACTOR AND MARTYR TURNED HIM INTO A PUBLIC MONUMENT IN 1952 BUT HIS THREE MAJOR PLAYS THE BALCONY THE BLACKS THE SCREENS CELEBRATED EXAMPLES OF THE THEATER OF THE ABSURD CAME IN ANOTHER CREATIVE BURST BETWEEN 1955 AND 1958 GENET BECAME A CELEBRITY FRIENDSHIPS WITH GIACOMETTI BOULEZ FOUCAULT AND DERRIDA MEETINGS WITH POMPIDOU MITTERRAND ARAFAT ANGELA DAVIS AND JANE FONDA HE COVERED THE 1968 DEMOCRATIC CONVENTION FOR ESQUIRE MAGAZINE SPOKE IN SUPPORT OF THE BLACK PANTHERS BEFORE 25000 PEOPLE AT YALE IN 1970 PREPOSTEROUSLY HAILED THE BAADERMEINHOF TERRORISTS AND BLITHELY DISMISSED THE CRIMES OF THE SOVIET UNION WHILE TRASHING THE UNITED STATES IN 1977 BUT IN 1982 HE BECAME THE FIRST EUROPEAN TO ENTER SHATILA AFTER THE MASSACRE OF THE PALESTINIANS AND HIS ARTICLE ON THIS SIGNALED A FINAL CREATIVE RENEWAL HE WAS CORRECTING THE PROOFS OF HIS LAST BOOK PRISONER OF LOVE A MEMOIR OF HIS EXPERIENCES WITH THE PALESTINIANS OVER 18 YEARS WHEN HE DIED IN PARIS IN 1986 DRAWING ON LETTERS DIARIES PSYCHIATRIC REPORTS AND DOZENS OF INTERVIEWS MR WHITE IS CLEAR AND CANDID ABOUT GENET'S PRIVATE LIFE HE DESCRIBES GENET'S SIX MAJOR LOVE AFFAIRS HIS GENEROUS BUT ABRUPTLY TERMINATED FRIENDSHIPS HIS HABIT OF LIVING OUT OF A SUITCASE IN A SUCCESSION OF HOTEL ROOMS GENET TURNS OUT TO BE ASCETIC SCRUPULOUS IN BUSINESS ADDICTED TO SLEEPING PILLS SUBJECT TO DEPRESSIONS AND LONG CREATIVE DROUGHTS AND THE REFORM SCHOOL BEAUTY ENDED UP LOOKING LIKE A RETIRED WELTERWEIGHT TEDDY BEAR THE COMPANION VOLUME THE SELECTED WRITINGS OF JEAN GENET 463 PAGES THE ECCO PRESS 2750 OFFERS AN EXCELLENT SURVEY OF THE FULL RANGE OF HIS WORK IT IS NOW THE BEST PLACE TO BEGIN OR TO RENEW ONE'S ACQUAINTANCE WITH THIS OBSESSIVE MAN OF LETTERS 9311100099 931110 JUSTICES MAKE IT EASIER TO PROVE SEX HARASSMENT COURT REJECTS REQUIREMENT THAT PLAINTIFFS SHOW A PSYCHOLOGICAL INJURY BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT MADE IT EASIER FOR WOMEN TO WIN SEXUALHARASSMENT SUITS AGAINST THEIR EMPLOYERS A UNANIMOUS HIGH COURT REJECTED A REQUIREMENT IMPOSED BY SOME LOWER COURTS THAT TO WIN SUCH SUITS WOMEN MUST DEMONSTRATE THAT THEY HAVE SUFFERED PSYCHOLOGICAL HARM AN ALLEGED VICTIM'S EMOTIONAL REACTIONS MAY BE RELEVANT BUT SHE NEEDN'T PROVE EXTREME DISTRESS TO PREVAIL THE JUSTICES SAID YESTERDAY'S DECISION APPLIED TO SUITS IN WHICH WOMEN ALLEGE THAT THEY HAVE BEEN SUBJECTED TO A HOSTILE WORK ENVIRONMENT THOUGH NOT NECESSARILY PRESSED TO HAVE SEX TO KEEP THEIR JOBS OR GET PROMOTED THE RULING FAVORED A TENNESSEE WOMAN WHO CLAIMED SHE HAD BEEN FORCED TO QUIT HER SUPERVISOR'S JOB AT AN EQUIPMENTRENTAL COMPANY BECAUSE OF CONTINUAL OFFCOLOR REMARKS BY THE COMPANY'S PRESIDENT THE HIGH COURT SPURNED PLEAS FROM A COALITION OF BUSINESSES FOR A SIMPLE LEGAL STANDARD THAT WOULD LIMIT HOSTILEWORKPLACE CLAIMS WRITING FOR THE COURT JUSTICE SANDRA DAY O'CONNOR SAID A MATHEMATICALLY PRECISE TEST ISN'T APPROPRIATE JURIES MUST CONSIDER ALL OF THE RELEVANT FACTS IN EACH CASE SHE SAID AMONG THOSE FACTS SHE ADDED MAY BE THE FREQUENCY AND SEVERITY OF HARASSMENT WHETHER IT IS PHYSICALLY THREATENING OR HUMILIATING AND WHETHER IT INTERFERES WITH AN EMPLOYEE'S WORK PERFORMANCE AS A PRACTICAL MATTER THE HIGH COURT'S EMPHASIS ON OPENENDED FACTUAL INQUIRIES MAKES IT MORE LIKELY THAT TRIAL JUDGES WILL SEND CASES TO JURIES RATHER THAN RULE SUMMARILY FOR EMPLOYERS THE SUPREME COURT FIRST RECOGNIZED THE HOSTILEWORKPLACE THEORY OF SEXHARASSMENT IN 1986 CONGRESS ADDED PUNCH TO THE CONCEPT IN 1991 WHEN IT GAVE SEXHARASSMENT PLAINTIFFS THE RIGHT TO HAVE THEIR CLAIMS HEARD BY JURIES AND TO SEEK COMPENSATORY AND PUNITIVE DAMAGES IN ADDITION TO BACK PAY JUSTICE O'CONNOR DESCRIBED HER OPINION AS TAKING A MIDDLE PATH BETWEEN HOLDING EMPLOYERS RESPONSIBLE FOR OFFENSIVE CONDUCT A STANDARD URGED BY SOME FEMINISTS AND REQUIRING THAT WOMEN SUFFER EMOTIONAL BREAKDOWNS BEFORE THEY CAN FILE SUIT EMPLOYERS COULD TAKE SOME SOLACE FROM PART OF JUSTICE O'CONNOR'S RULING THAT SAID PLAINTIFFS WOULD HAVE TO PROVE THAT A REASONABLE PERSON WOULD FIND THE ENVIRONMENT IN THEIR WORKPLACE ABUSIVE SOME WOMEN'SRIGHTS ADVOCATES HAD ARGUED THAT INJECTING THE REASONABLEPERSON CONCEPT WOULD BE UNFAIR AND SEXIST IN HER FIRST OPINION AS A JUSTICE RUTH BADER GINSBURG CONCURRED WITH THE O'CONNOR OPINION BUT DESCRIBED IT IN A MORE EXPLICITLY PROPLAINTIFF MANNER JUSTICE GINSBURG ASSERTED FOR EXAMPLE THAT PROTECTION AGAINST SEXHARASSMENT SHOULD BE JUST AS STRONG AS THAT AGAINST RACIAL DISCRIMINATION A POINT JUSTICE O'CONNOR DIDN'T MAKE THE HIGH COURT'S DECISION CAME IN THE CASE OF TERESA HARRIS FORMERLY RENTAL MANAGER FOR FORKLIFT SYSTEMS INC IN NASHVILLE MS HARRIS SAID THE COMPANY'S PRESIDENT PUBLICLY HAD BARRAGED HER WITH DISPARAGING AND SEXUALLY SUGGESTIVE COMMENTS THESE INCLUDED SAYING YOU'RE A WOMAN WHAT DO YOU KNOW AND AN INVITATION TO GO TO A NEARBY MOTEL WITH HIM TO NEGOTIATE HER RAISE MS HARRIS SUED THE COMPANY BUT LOST IN TWO LOWER FEDERAL COURTS A TRIAL JUDGE SAID THAT THE COMPANY PRESIDENT'S BEHAVIOR HAD BEEN VULGAR AND THAT A REASONABLE WOMAN WOULD HAVE BEEN OFFENDED BUT THE JUDGE RULED FOR THE COMPANY CONCLUDING THAT MS HARRIS HADN'T DEMONSTRATED A SERIOUS PSYCHOLOGICAL INJURY THE FEDERAL APPEALS COURT BASED IN CINCINNATI AFFIRMED THAT RULING THE SUPREME COURT REVERSED THE APPEALSCOURT DECISION AND INSTRUCTED THE LOWER COURT TO RETHINK THE CASE IN LIGHT OF YESTERDAY'S RULING HARRIS VS FORKLIFT SYSTEMS INC SEPARATELY THE SUPREME COURT DEALT PUBLICSCHOOL SYSTEMS A POTENTIALLY COSTLY DEFEAT IN A CASE INVOLVING DISPUTES OVER WHO SHOULD PAY FOR EDUCATING DISABLED STUDENTS THE HIGH COURT SAID PUBLIC SYSTEMS MAY HAVE TO REIMBURSE PARENTS FOR EDUCATING THEIR HANDICAPPED CHILDREN IN PRIVATE SCHOOLS EVEN IF THE PRIVATE SCHOOLS DON'T MEET ALL STATE STANDARDS REIMBURSEMENT MAY BE REQUIRED WHEN A PUBLIC SYSTEM FAILS TO PROVIDE AN EDUCATION TAILORED TO THE NEEDS OF A DISABLED STUDENT WHILE A PRIVATE SCHOOL DOES THE HIGH COURT SAID 9311100098 931110 WHO'S NEWS STANHOME APPOINTS SEAWRIGHT PRESIDENT AND CHIEF EXECUTIVE WESTFIELD MASS HOPING TO REGAIN EARNINGS MOMENTUM STANHOME INC NAMED G WILLIAM SEAWRIGHT AN EXPERIENCED CONSUMER PRODUCTS HAND PRESIDENT AND CHIEF EXECUTIVE OFFICER THE 52YEAROLD MR SEAWRIGHT AN OUTSIDE DIRECTOR SUCCEEDS BILL TOWER THE COMPANY'S CHAIRMAN MR TOWER HAD SERVED AS INTERIM PRESIDENT AND CHIEF EXECUTIVE OFFICER SINCE ALEJANDRO DIAZ VARGAS WAS REMOVED IN LATE AUGUST STANHOME HAS ABOUT 750 MILLION IN ANNUAL SALES BUT HAS BEEN HURT AS ITS DIRECTSALES BUSINESS IN HOUSEHOLD PRODUCTS HAS PERFORMED POORLY OFFSETTING THE GROWTH OF ITS PRECIOUS MOMENTS FIGURINES MR VARGAS NOW IS PRESIDENT OF STANHOME'S WORLDWIDE DIRECT SELLING GROUP THE THRUST AT STANHOME WILL BE TO CONTINUE TO BRING NEW THINGS TO MARKET SAID MR SEAWRIGHT WE WANT TO FIND NICHE ITEMS THAT WILL IMPROVE OUR PRODUCT LINES MR SEAWRIGHT ALONG WITH MR TOWER 60 SAID ACQUISITIONS WILL ALSO BE NECESSARY TO BUILD PROFITS MR SEAWRIGHT COMES TO STANHOME AFTER MORE THAN 25 YEARS AS AN EXECUTIVE AT GRAND METROPOLITAN PLC DURING HIS TIME AT THE ENGLISH CONSUMER PRODUCTS COMPANY ESPECIALLY AS PRESIDENT OF HEUBLEIN INTERNATIONAL FROM 1986 TO 1990 MR SEAWRIGHT BUILT A REPUTATION FOR STRONG PRODUCT DEVELOPMENT ONE ISSUE MR SEAWRIGHT WILL HAVE TO ADDRESS IS STANHOME'S DIRECTSALES PROGRAM WHICH HAS HAD FLA SALES RECENTLY IN AUGUST THE COMPANY REPORTED A SECOND QUARTER NET LOSS OF 12 MILLION OR SIX CENTS A SHARE ON 1872 MILLION IN REVENUE THE LOSS INCLUDED AN 115 MILLION OR 58CENTSASHARE RESTRUCTURING CHARGE STEMMING FROM WORKFORCE REDUCTIONS 9311100097 931110 INTERNATIONAL DAIMLER'S AEG AG TO REORGANIZE UNIT SHUT ONE BERLIN PLANT FRANKFURT AEG AG A DIVISION OF GERMANY'S DAIMLERBENZ AG CONGLOMERATE SAID IT WILL SHUT ONE OF ITS BERLIN PLANTS BY THE END OF NEXT YEAR IN A REORGANIZATION OF ITS RAILWAY TECHNOLOGY DIVISION THE PLAN INCLUDES JOB CUTS THAT HAVE ALREADY DRAWN FIRE FROM UNION LEADERS AND GERMANY'S TREUHANDANSTALT PRIVATIZATION AGENCY THE EASTERN BERLIN HENNIGSDORF PLANT WHICH AEG BOUGHT FROM THE TREUHAND LAST YEAR WILL BECOME THE HEADQUARTERS OF THE SCHIENENFAHRZEUGE RAILWAYS UNIT THE COMPANY SAID THE NONNENDAMM PLANT IN WESTERN BERLIN WILL BE CLOSED BY THE END OF 1994 TWO LOCATIONS SO CLOSE TOGETHER CAN'T BE BORNE ECONOMICALLY IN LIGHT OF THE COMPETITION SITUATION IN THE INDUSTRY AEG RAILWAY DIVISION HEAD KLAUS OERTEL SAID YESTERDAY AT A NEWS CONFERENCE IN BERLIN AEG SAID IT WILL CUT ABOUT 1580 JOBS IN ITS RAILWAY DIVISION OVER THE NEXT TWO YEARS OF THOSE 830 PLACES WILL BE CUT NEXT YEAR AND THE ADDITIONAL 750 IN 1995 GERMANY'S IG METALL METAL WORKERS UNION SHARPLY CRITICIZED AEG'S PLAN TO CUT JOBS ACCUSING THE COMPANY OF A TRANSPARENT DEAL AEG WANTS TO CUT JOBS IN WESTERN BERLIN AND AT THE SAME TIME HOLD THE GUARANTEED JOBS IN THE EASTERN BERLIN PLANT BOUGHT FROM THE TREUHAND AN IG METALL SPOKESMAN SAID THE TREUHAND ISSUED A THINLY VEILED WARNING TO AEG IN A NEWS RELEASE YESTERDAY THAT SAID THE TREUHANDANSTALT ASSUMES AEG WILL HOLD TO THE TERMS OF THE HENNIGSDORF PRIVATIZATION CONTRACT WHICH INCLUDES JOB GUARANTEES AND INVESTMENT PROMISES 9311100096 931110 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9311100095 931110 WHO'S NEWS ZIFF CHAIRMAN GIVES UP HELM TO HEAD OF UNIT BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WILLIAM B ZIFF JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ZIFF COMMUNICATIONS CO IS FORMALLY HANDING OVER THE MANAGEMENT REINS OF THE PUBLISHING COMPANY TO ERIC HIPPEAU WHO HAS BEEN EFFECTIVELY RUNNING ZIFF FOR THE PAST YEAR AS HE RETIRES MR ZIFF IS TAKING THE TITLE OF CHAIRMAN EMERITUS OF THE CLOSELY HELD COMPANY MR HIPPEAU A 42YEAROLD FRENCHMAN JOINED ZIFF IN 1989 AS PUBLISHER OF PC MAGAZINE THE COMPANY'S FLAGSHIP PUBLICATION WITH ONE MILLION SUBSCRIBERS BY 1991 MR HIPPEAU HAD BEEN PROMOTED SEVERAL TIMES AND WAS NAMED CHAIRMAN AND CEO OF ZIFF'S MAGAZINE DIVISION ZIFFDAVIS PUBLISHING CO ZIFFDAVIS WAS FOUNDED BY WILLIAM ZIFF'S FATHER IN 1927 AND WHEN MR ZIFF JR TOOK OVER IN 1955 ITS TITLES INCLUDED POPULAR PHOTOGRAPHY AND MODERN BRIDE MR ZIFF BUILT UP THE COMPANY'S STABLE OF BUSINESS AND CONSUMER MAGAZINES THEN SOLD THEM TO NEWS CORP AND CBS INC FOR A TOTAL OF MORE THAN 700 MILLION IN THE MID'80S AFTER A SUCCESSFUL BATTLE WITH CANCER MR ZIFF STARTED ALL OVER AND BUILT THE CURRENT STABLE OF COMPUTERORIENTED MAGAZINES MR ZIFF HAS TWO SONS IN THEIR 20S WHO WORK AT THE COMPANY ESSENTIALLY ALL THE COMPANY'S STOCK IS CONTROLLED BY MR ZIFF'S SONS AND NEPHEWS ZIFF DOESN'T RELEASE ITS REVENUES OR EARNINGS BUT SAID THE CORE MAGAZINE DIVISION HAS COMBINED CIRCULATION OF 36 MILLION ZIFF REPORTED AD REVENUE IN 1992 OF 6619 MILLION AN INCREASE OF 30 FROM 1991 SAYING HE EXPECTS THE TRANSITION TO BE SEAMLESS MR ZIFF EMPHASIZED THAT IN HIS NEW ADVISORY ROLE I WON'T BE MAKING ANY DECISIONS HE ADDED I BELIEVE THAT WHEN THE GUARD CHANGES IT IS IMPORTANT THAT IT REALLY CHANGES WHEN MY ADVICE IS WANTED OR THEY WISH ME TO TACKLE A PARTICULAR PROJECT I'LL BE HAPPY TO DO IT MR HIPPEAU SAID THAT HE DOESN'T PLAN TO STEER ZIFF COMMUNICATIONS INTO ANY RADICAL NEW DIRECTIONS BUT WILL EXPAND THE FOUR EXISTING DIVISIONS WHICH INCLUDE MAGAZINE PUBLISHING COMPUTER TRADE SHOWS ELECTRONIC INFORMATION AND A DIVERSE GROUP THAT INCLUDES OPERATIONS IN BOOK AND NEWSLETTER PUBLISHING WE EXPECT TO GROW VERY FAST PARTICULARLY IN THE AREA OF ELECTRONIC DELIVERY MR HIPPEAU SAID ZIFFDAVIS HAS BEEN OFFERING ITS COMPUTER MAGAZINES ONLINE TO PERSONALCOMPUTER OWNERS WHO SUBSCRIBE TO VARIOUS COMPUTERNETWORK SERVICES FOR FOUR YEARS THE COMPANY YESTERDAY INTRODUCED AN INTERACTIVE CDROM VERSION OF ITS PC MAGAZINE WHICH WILL INCLUDE A YEAR'S WORTH OF BACK ISSUES 9311100094 931110 WHAT'S NEWS WORLDWIDE GORE ASSAILED PEROT AND SOUGHT TO SELL NAFTA TO THE AMERICAN PUBLIC THE VICE PRESIDENT IN A TELEVISED DEBATE WITH PEROT PORTRAYED NAFTA AS AN OPPORTUNITY FOR US COMPANIES TO MOVE INTO A NEW MARKET AND MAKE TRADE RELATIONS WITH MEXICO EVENSTEVEN GORE PUT THE TEXAS BILLIONAIRE ON THE DEFENSIVE BY ATTACKING HIS CREDIBILITY PEROT SHOWED PICTURES OF MEXICAN SLUMS AND SUGGESTED AN IMPORT FEE ON GOODS COMING FROM LOWWAGE COUNTRIES TO HELP COMPANIES HERE COMPETE WITH POOR NATIONS THE ADMINISTRATION TRYING TO SECURE VOTES FOR NAFTA IS NEGOTIATING POSSIBLE CHANGES IN ITS PLAN TO BOOST GRAZING FEES NAFTA ALSO MAY HAVE INFLUENCED THE AWARDING OF TWO AIRLINE ROUTES THE HIGH COURT MADE IT EASIER FOR EMPLOYEES TO WIN SEXHARASSMENT SUITS A UNANIMOUS SUPREME COURT REJECTED A REQUIREMENT IMPOSED BY SOME LOWER COURTS THAT TO WIN SUCH SUITS WOMEN MUST DEMONSTRATE THAT THEY HAVE SUFFERED PSYCHOLOGICAL HARM AN ALLEGED VICTIM'S EMOTIONAL REACTIONS MAY BE RELEVANT BUT SHE NEEDN'T PROVE EXTREME DISTRESS TO PREVAIL THE JUSTICES SAID THE DECISION APPLIED TO SUITS IN WHICH WOMEN ALLEGE THAT THEY HAVE BEEN SUBJECTED TO A HOSTILE WORK ENVIRONMENT THE JUSTICES SPURNED REQUESTS FROM A COALITION OF BUSINESSES FOR A SIMPLE LEGAL STANDARD THAT WOULD LIMIT THE NUMBER OF HOSTILEWORKPLACE CLAIMS NINE CHILDREN WERE KILLED IN A MORTAR ATTACK ON A SARAJEVO SCHOOL IN THE DEADLIEST ASSAULT IN THE BOSNIAN CAPITAL IN A MONTH MORTAR ROUNDS EXPLODED OUTSIDE A PRIMARY SCHOOL KILLING OR WOUNDING DOZENS OF CHILDREN AND KILLING A TEACHER THE VICTIMS CROWDED HOSPITAL WARDS WHERE OFFICIALS LOST COUNT OF THE NUMBER ADMITTED I FOUND A HORRIFIC SIGHT CRIES SCREAMS BLOOD OF INNOCENT LITTLE CHILDREN ONE TEACHER SAID CIVIL SERVICE OFFICIALS SAID THE SHELLS CAME FROM A SUBURB HELD BY SERBS SHELLING IN THE SOUTHWESTERN CITY OF MOSTAR DESTROYED ONE OF BOSNIA'S ARCHITECTURAL TREASURES THE 16THCENTURY STONE BRIDGE THAT GAVE THE CITY ITS NAME YELTSIN DEFENDED HIS NEW DRAFT CONSTITUTION AS A GUARANTOR OF STABILITY AND POSTSOVIET FREEDOMS AND DENIED HE WANTS TO RULE WITH AN IRON HAND THE RUSSIAN PRESIDENT APPEARED ON TELEVISION TO DISCUSS THE PROPOSED CONSTITUTION WHICH STRENGTHENS THE PRESIDENCY AT THE EXPENSE OF PARLIAMENT THE DOCUMENT WAS UNVEILED YESTERDAY CANADIAN PATIENTS RECEIVE LESS AGGRESSIVE TREATMENT FOR HEART ATTACKS AND SUFFER MORE PAIN AND DISABILITY DURING RECOVERY THAN US PATIENTS ACCORDING TO A NEW STUDY RESEARCHERS SAID THE FINDINGS RAISE A WARNING FLAG ABOUT CANADA'S STRATEGY FOR CONTAINING MEDICAL COSTS BY LIMITING THE USE OF HIGHTECH SERVICES THE US WELCOMED A CHINESE DECISION TO CONSIDER ALLOWING RED CROSS INSPECTIONS OF PRISON CONDITIONS SAYING THE MOVE COULD LEAD TO AN EXTENSION OF BEIJING'S FAVORABLE TRADE STATUS CHINA'S FOREIGN MINISTER SAID EARLIER IN THE DAY THAT HIS GOVERNMENT WAS WILLING TO CONSIDER A REQUEST FOR RED CROSS VISITS THE SENATE MADE ITS ANTICRIME BILL EVEN TOUGHER BY APPROVING A FEDERAL DEATH PENALTY FOR MURDERS COMMITTED WITH GUNS VOTING TO MAKE GANG ACTIVITY A FEDERAL CRIME AND BARRING MINORS FROM OWNING GUNS AN EXBANKER TESTIFIED THAT THE FAILURES OF OUTSIDE AUDITORS HELPED MASK 5 BILLION OF ALLEGEDLY FRAUDULENT LOANS TO IRAQ ARRANGED BY THE ATLANTA BRANCH OF ITALY'S BANCA NAZIONALE DEL LAVORO CHRISTOPHER DROGOUL THE BRANCH'S FORMER MANAGER SAID HE HAD BEEN ENCOURAGED TO MAKE THE LOANS ISRAEL AND JORDAN HAVE MOVED CLOSER TO A PEACE PACT ISRAEL'S FOREIGN MINISTER SAID PERES TOLD AN INTERVIEWER THAT MANY ISSUES HAVE BEEN RESOLVED AND WHAT IS LEFT CAN BE SETTLED HE DIDN'T COMMENT ON PLO LEADER ARAFAT'S STATEMENT THAT A JORDANISRAEL ACCORD WOULD BE SIGNED WITHIN DAYS HAITI'S OUSTED PRESIDENT DECLARED THAT THE HAITIAN PEOPLE WOULD WELCOME ANY DECISION TO USE FORCE TO RETURN HIM TO POWER BUT ARISTIDE STRESSED THAT HE HIMSELF IS PROHIBITED BY THE HAITIAN CONSTITUTION FROM URGING ARMED INTERVENTION THE WHITE HOUSE QUESTIONED A HARVARD UNIVERSITY STUDY THAT BLAMES ECONOMIC SANCTIONS AGAINST HAITI FOR THE DEATHS OF 1000 CHILDREN A MONTH CLINTON'S PRESS SECRETARY SAID THE WHITE HOUSE HAD SOME QUESTIONS ABOUT THE STUDY'S METHODOLOGY 9311100093 931110 INTERNATIONAL JAPAN'S KAJIMA CUTS ITS EARNINGS FORECAST FOR THIS FISCAL YEAR SPECIAL TO THE WALL STREET JOURNAL TOKYO KAJIMA CORP A LEADING JAPANESE GENERAL CONTRACTOR RECENTLY MIRED IN THE GROWING MONEYFORFAVORS CONSTRUCTIONINDUSTRY SCANDAL TUESDAY SLASHED ITS NETINCOME FORECAST FOR THE FISCAL YEAR ENDING MARCH 31 1994 THE DOWNWARD REVISION REFLECTS ABOUT 50 BILLION YEN 4638 MILLION IN LOSSES FROM LIQUIDATING A JAPANESE REALESTATE SUBSIDIARY TOWA FUDOSAN KK THAT WAS HEAVILY EXPOSED IN AUSTRALIAN REAL ESTATE AN OFFICIAL SAID KAJIMA SAID IT NOW EXPECTS A PROFIT OF ONE BILLION YEN DOWN 88 FROM ITS PREVIOUS FORECAST OF 8 BILLION YEN HOWEVER KAJIMA RAISED ITS OUTLOOK FOR PRETAX PROFIT TO 54 BILLION YEN WHICH IS A DROP OF 31 FROM 7864 BILLION YEN POSTED FOR THE PRIOR YEAR BUT AN IMPROVEMENT OVER ITS FORECAST FOR A 49 PLUNGE KAJIMA IS ONE OF MANY JAPANESE DEVELOPERS THAT INVESTED HEAVILY IN THE BOOMING AUSTRALIAN MARKET OF THE 1980S AND HAVE BEEN BADLY BURNED OVER THE PAST FEW YEARS AS THE MARKET HAS SLUMPED SHIMIZU CORP IN MAY POSTED 755 BILLION YEN IN EXTRAORDINARY LOSSES FOR THE FISCAL YEAR ENDED MARCH 31 1993 TIED TO LIQUIDATION OF UNPROFITABLE BUSINESSES IN AUSTRALIA AND THE UK THE KAJIMA OFFICIAL SAID THE LIQUIDATION OF TOWA FUDOSAN IN EFFECT IS A WITHDRAWAL BY KAJIMA FROM THE AUSTRALIAN REALESTATE MARKET KAJIMA STILL HAS OTHER COMPANIES INVOLVED IN AUSTRALIAN REAL ESTATE INCLUDING TWO LOCAL UNITS CONSTRUCTION COMPANY KAJIMA CORP AUSTRALIA AND FINANCE ARM KAJIMA PROPERTIES AUSTRALIA 9311100092 931110 CALIFORNIA FIRES LOSING HOUSES SAVING RATS BY IKE C SUGG VIOLATING THE ENDANGERED SPECIES ACT JUST MIGHT BE THE BEST THING MICHAEL ROWE EVER DID WHILE MOST OF MR ROWE'S LAWABIDING NEIGHBORS LOST THEIR HOMES TO THE OCTOBER FIRES THAT DESTROYED AN ESTIMATED 1 BILLION OF PROPERTY IN SOUTHERN CALIFORNIA BREAKING THE LAW SAVED HIS BY CLEARING A FIREBREAK IN HABITAT DESIGNATED FOR AN ENDANGERED SPECIES MR ROWE SPARED HIS FAMILY'S HOUSE FROM THE BLAZE FOR FEAR OF PROSECUTION MR ROWE WILL NOT SAY THAT HE ACTUALLY BROKE THE LAW EVEN IF HE DID HE MAINTAINS IT IS UNLIKELY THE GOVERNMENT WOULD PROSECUTE HIM AS HE PUTS IT I DON'T THINK THEY'RE THAT STUPID THE ENDANGERED SPECIES ACT'S MANDATES ARE DIRECTLY IMPLICATED IN MUCH OF CALIFORNIA'S RECENT FIREBORNE TRAGEDY NEVERTHELESS MR ROWE'S ANGER IS PALPABLE AND PERFECTLY JUSTIFIED IN 1991 MR ROWE HIS WIFE AND THREE CHILDREN MOVED INTO A CRAMPED ONEBEDROOM HOUSE ON THEIR 20ACRE HILLTOP RANCH 80 MILES EAST OF LOS ANGELES THAT SAME YEAR AFTER SAVING ENOUGH MONEY TO EXPAND THEIR HOUSE MR ROWE WAS TOLD THAT HIS RANCH WAS PART OF A STUDY AREA FOR THE STEPHEN'S KANGAROO RAT A SPECIES PROTECTED BY THE ENDANGERED SPECIES ACT THUS MR ROWE WAS DENIED THE USE OF HIS PROPERTY ESSENTIALLY BECAUSE THE GOVERNMENT WANTS TO TURN IT INTO A RAT PRESERVE THE SOCALLED K RAT WAS LISTED AS AN ENDANGERED SPECIES IN 1988 SINCE THEN ABOUT 100 MILLION HAS BEEN SPENT TO PROTECT IT SOME 77000 ACRES OF PRIVATE PROPERTY HAVE BEEN DESIGNATED AS KRAT STUDY AREAS IN RIVERSIDE COUNTY WHERE MR ROWE LIVES STUDY AREAS ARE STRICTLY PROTECTED OF THE LAND ACTUALLY OCCUPIED BY THE K RAT 80 IS CURRENTLY OFF LIMITS TO HUMAN DISTURBANCE THE RODENT'S HISTORICAL RANGE ENCOMPASSES SOME 500000 ACRES OF RIVERSIDE COUNTY THOSE WHO CAN AFFORD IT MUST PAY NEARLY 2000 AN ACRE TO DEVELOP ANY OF THAT LAND OCCUPIED OR NOT CALIFORNIA PROPERTY OWNERS MAY SMELL A RAT BUT IT IS HARDLY THE ONLY SPECIES THAT IMPINGES ON THEIR PROPERTY RIGHTS ALREADY THE SPOTTED OWL HAS RESTRICTED THE USE OF 42 MILLION ACRES WITH THE LISTING OF THE CALIFORNIA GNATCATCHER IN MARCH MORE THAN 400000 ACRES OF SOUTHERN CALIFORNIA COASTAL SAGE SCRUB WERE PUT OFF LIMITS A THIRD OF THEM INCIDENTALLY IN RIVERSIDE COUNTY ONLY 5 OF THE GNATCATCHER'S TOTAL HABITAT CAN BE RELEASED FOR CONSTRUCTIVE USE AMAZINGLY INTERIOR SECRETARY BRUCE BABBITT SAYS THESE EXAMPLES PRESENT A MODEL OF ECOSYSTEM MANAGEMENT WHICH WILL ACTUALLY ENHANCE THE POSITION OF PRIVATE PROPERTY OWNERS MR BABBITT AND OTHER DEFENDERS OF THE ENDANGERED SPECIES ACT LIKE TO NOTE HOW FLEXIBLE THE LAW IS FOR PROPERTY OWNERS IT IS TRUE IN MR ROWE'S CASE THAT IF HE CAME UP WITH 5000 TO HIRE A BIOLOGIST HE MIGHT BE ALLOWED THE USE OF HIS LAND IF A BIOLOGICAL SURVEY FOUND NO K RATS THEN MR ROWE COULD EARN THE RIGHT TO USE HIS OWN LAND BY PAYING THE GOVERNMENT 1950 AN ACRE IN DEVELOPMENT MITIGATION FEES TO SUBSIDIZE THE PURCHASE OF OCCUPIED HABITAT ELSEWHERE THE PRESENCE OF A SINGLE RAT HOWEVER WOULD NEGATE EVEN THIS LIMITED OPTION I CAN'T AFFORD ANY OF THAT MR ROWE EXCLAIMS BUT THEN AGAIN HE CAN'T AFFORD TO LOSE HIS HOUSE EITHER SO WHEN THE WINCHESTER FIRE CAME ROARING OVER A NEARBY HILLTOP AROUND 1 AM ON OCT 27 MR ROWE JUMPED ON HIS TRACTOR AND HASTILY MADE A FIREBREAK TO PROTECT HIS PROPERTY MR ROWE DISCED OR TURNED OVER A SWATH OF GROUND BEFORE THE FIRES ARRIVED HE LOST A SHED AND SUFFERED OTHER MINOR DAMAGE BUT SAVED HIS HOUSE OTHERS WEREN'T SO LUCKY THAT ONE FIRE BURNED 25100 ACRES AND DESTROYED SOME 30 HOMES SO ANGRY ARE THE FIRE VICTIMS THAT THEY ARE BANDING TOGETHER TO FIGHT THE ENDANGERED SPECIES ACT I BLAME THOSE PUBLICMINDED ASSES AND ENVIRONMENTALISTS WHO DON'T LET US CLEAR THE BRUSH SAID ISHMAEL GARCIA WHOSE HOUSE WAS DESTROYED FOR THAT VERY REASON ANNA KLIMKO ANOTHER RIVERSIDE COUNTY RESIDENT WHO LOST HER HOUSE REPORTED THAT NEIGHBORS OF MINE WHO WENT AHEAD AND DISCED THEIR PROPERTY STILL HAVE THEIR HOUSES THE ISSUE OF CLEARING GROUND TO PROTECT HOUSES HAS COME UP BEFORE OF COURSE DURING THE FIRE SEASON OF 1992 THE RIVERSIDE COUNTY FIRE DEPARTMENT ORDERED MR ROWE'S NEIGHBORS TO ABATE THE FLAMMABLE VEGETATION SOMETHING THEY WERE EAGER TO DO BUT THE US FISH AND WILDLIFE SERVICE FWS WARNED IN A LETTER THAT DISCING OF THE FIREBREAK WOULD HARM THE K RAT AND THUS IS NOT AUTHORIZED BY THE ENDANGERED SPECIES ACT IN A SEPARATE LETTER TO MR ROWE WHOSE PROPERTY WAS THREATENED BY HIS NEIGHBORS' VEGETATION FWS WROTE IT SHOULD BE NOTED THAT THE ACT PROVIDES FOR BOTH CRIMINAL AND CIVIL PENALTIES FOR DISCING IN THIS CASE GOING TO FEDERAL PRISON OR BEING FINED UP TO 100000 FWS SENT A COPY OF THE LETTER TO AN FWS LAW ENFORCEMENT OFFICE IN GARDENA CALIF INSTEAD FWS WROTE MOWING THE SITE WOULD KEEP MR ROWE OUT OF TROUBLE AND PROTECT HIS PROPERTY TOO UNFORTUNATELY THAT CLAIM ISN'T TRUE AS MS KLIMKO DISCOVERED THIS YEAR SHE MOWED HER PROPERTY AND LOST HER HOME THE MOWED AREAS STILL BURNED SHE LAMENTS ANGRILY AND THAT WAS THE PROBLEM NOT JUST WITH THE K RAT IN RIVERSIDE COUNTY BUT WITH THE GNATCATCHER IN ORANGE AND SAN DIEGO COUNTIES WHERE FIRES TOOK HUNDREDS OF HOMES AS THEY TORE THROUGH PROTECTED HABITAT THE DESIGNATION OF BRUSH AS PROTECTED HABITAT AND RESTRICTIONS ON CONTROLLED BURNS AND OTHER METHODS TO KEEP BRUSH DOWN FUELED THE DESTRUCTIVENESS OF THE FIRES ACCORDING TO THE ORANGE COUNTY FIRE CHIEF CLEARING BRUSH COULD HAVE STOPPED THE LAGUNA BEACH FIRE THIS LESSON WAS LOST ON MR BABBITT HOWEVER RATHER THE LESSON OF THESE FIRES HE TOLD MEDIA AT A LOS ANGELES FIRE STATION IS THAT WE'VE GOT TO KEEP THE PEOPLE AWAY FROM THE FIRE HAZARD KEEPING THE FIRE HAZARD AWAY FROM THE PEOPLE WAS APPARENTLY NOT WORTH CONSIDERING WITH SUCH DECLARATIONS MR BABBITT SEEMS TO ENDORSE AN ALARMING PRINCIPLE THE PROPERTY RIGHTS OF HUMANS MAY BE VIOLATED BUT THE HABITAT OF CERTAIN ANIMALS MAY NOT BE IT IS HARD TO KNOW WHAT TO THINK WHEN ENVIRONMENTALISTS ASSERT THAT THEIR FAVORITE REGULATIONS PROTECT THE PUBLIC IF SUCH REGULATIONS PROTECTED THE PUBLIC RIVERSIDE COUNTY'S FIRE HAZARD WOULD HAVE BEEN MITIGATED BUT IT WASN'T AND ALONG WITH MANY OTHERS MR ROWE'S NEXTDOOR NEIGHBORS SUFFERED THE CONSEQUENCES THE OCTOBER FIRESTORM SCORCHED ABOUT 80 OF THEIR PROPERTY LEAVING THEM AND THEIR CATTLE IN THE MIDDLE OF A CLEARED FIELD AT 2 AM SURROUNDED BY FIRE THIS PITIFUL STORY RAISES A QUESTION WHOSE HABITAT IS IT ANYWAY IN FWS'S 1992 LETTER TO MR ROWE IT WARNED THAT HARMING OR HARASSING A K RAT WOULD BE CONSIDERED A TAKE UNDER THE ENDANGERED SPECIES ACT THIS INCLUDES SIGNIFICANT HABITAT MODIFICATION OR DEGRADATION WHERE IT ACTUALLY KILLS OR INJURES WILDLIFE BUT WHEN THE ACT WAS PASSED IN 1973 IT CONSPICUOUSLY LACKED SUCH LANGUAGE INDEED SPECIFIC LANGUAGE IN AN EARLIER DRAFT LANGUAGE THAT PROHIBITED HABITAT MODIFICATION ON PRIVATE PROPERTY WAS DELETED FROM THE FINAL BILL AS WITH FEDERAL WETLANDS REGULATIONS THE ENDANGERED SPECIES ACT HAS METASTASIZED OVER TIME MR ROWE WONDERS BY WHAT AUTHORITY DO THESE DOGOODERS WITH THEIR TRACT HOMES AND CONDOS THAT DESTROYED PRIOR HABITAT DETERMINE THAT MY PROPERTY SHOULD REMAIN OPEN SPACE FOR THEM TO HAVE HILLS TO LOOK AT HE NOTES THAT NOT ONE OF THE ADVOCATES FOR PRESERVATION OF THE K RATS OWNS PROPERTY IN THE DESIGNATED HABITAT PRESERVES HIS SUGGESTION LET THEM BRING THEIR CHECKBOOKS PURCHASE THE PROPERTY AND THEY CAN LOOK AT IT ALL THEY WANT MR SUGG IS A FELLOW AT THE COMPETITIVE ENTERPRISE INSTITUTE IN WASHINGTON THE 77000 ACRES SET ASIDE AS STUDY AREAS FOR THE KANGAROO RAT IN RIVERSIDE COUNTY CALIF MENTIONED IN IKE SUGG'S NOV 10 EDITORIALPAGE ARTICLE CALIFORNIA FIRES LOSING HOUSES SAVING RATS INCLUDE BOTH PUBLIC AND PRIVATE LAND THIS FACT WAS MISSTATED IN THE ARTICLE 9311100090 931110 GENENTECH INC DRUG MAY EXTEND SURVIVAL AFTER HEART ATTACK SOUTH SAN FRANCISCO CALIF GENENTECH INC'S HEART DRUG ACTIVASE TPA OUTPERFORMED SMITHKLINE BEECHAM'S EMINASE APSAC IN EXTENDING SURVIVAL OF HEARTATTACK PATIENTS IN A SMALL STUDY RESEARCHERS REPORTED IN A STUDY BY CHRISTOPHER CANNON OF THE BRIGHAM AND WOMEN'S HOSPITAL IN BOSTON 382 PATIENTS WERE ASSIGNED RANDOMLY TO RECEIVE THE GENENTECH DRUG THE SMITHKLINE DRUG OR A COMBINATION OF THE TWO PATIENTS TREATED WITH GENENTECH'S ACTIVASE HAD A SIGNIFICANTLY BETTER SURVIVAL RATE THE FINDINGS WERE PRESENTED AT THE AMERICAN HEART ASSOCIATION MEETING IN ATLANTA YESTERDAY FEWER DEATHS OCCURRED IN THE ACTIVASETREATED GROUP DR CANNON REPORTED AFTER ONE YEAR OF FOLLOWUP 68 OF THE ACTIVASETREATED PATIENTS DIED COMPARED WITH 19 OF PATIENTS ON EMINASE AND 133 AMONG THOSE ON THE COMBINATION REGIMEN FURTHER THE STUDY SUPPORTS A THEME POUNDED HOME BY THE MANUFACTURER AND FANS OF ACTIVASEOPENING CLOGGED ARTERIES FASTER IMPROVES CHANCES OF SURVIVAL WE BELIEVE IMPROVED EARLY PATENCY CLEARED ARTERIES HELPS EXPLAIN THE BETTER CLINICAL OUTCOME OF PATIENTS IN THE TPA GROUP SAID HARVARD UNIVERSITY MEDICAL SCHOOL'S EUGENE BRAUNWALD WHO IS CHAIRMAN OF THE HEARTDRUG TRIALS OF WHICH THE STUDY WAS A PART SMITHKLINE BEECHAM IS A UNIT OF SMITHKLINE BEECHAM PLC ACCORDING TO GENENTECH OCTOBER SALES SHOW ACTIVASE IN THE LEAD WITH 66 OF THE MARKET STREPTOKINASE WITH 31 AND SMITHKLINE'S EMINASE WITH ABOUT 3 GENENTECH SHARES CLOSED AT 4675 DOWN 25 CENTS ON THE NEW YORK STOCK EXCHANGE 9311100088 931110 POSSIBLE VIOLATIONS OF ANTITRUST PROBED AT CYPRUS AMAX BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL ONE DAY AFTER THEIR PROPOSED MERGER RECEIVED JUSTICE DEPARTMENT APPROVAL CYPRUS MINERALS CO AND AMAX INC SAID THEY WERE AMONG COMPANIES BEING INVESTIGATED BY FEDERAL AUTHORITIES FOR POSSIBLE ANTITRUST VIOLATIONS THAT MAY HAVE OCCURRED IN THE MOLYBDENUM MINING AND PROCESSING INDUSTRY A JUSTICE DEPARTMENT SPOKESWOMAN CONFIRMED THAT THE DEPARTMENT'S ANTITRUST DIVISION IS INVESTIGATING THE MOLYBDENUM INDUSTRY BUT DECLINED TO PROVIDE DETAILS MOLYBDENUM IS A METAL USED TO STRENGTHEN STEEL MEANWHILE SPOKESMEN FOR CYPRUS BASED IN DENVER AND NEW YORKBASED AMAX SAID THE TWO MINING CONCERNS PLANNED TO COOPERATE FULLY WITH THE INVESTIGATION ALTHOUGH THEY SAID THEY KNEW FEW DETAILS THEY SENT US A TWOPARAGRAPH LETTER A CYPRUS SPOKESMAN SAID THIS IS REALLY ALL THAT WE KNOW AT THIS POINT BOTH COMPANIES SAID THEY PLANNED TO GO AHEAD WITH MEETINGS FRIDAY AT WHICH THEIR SHAREHOLDERS WOULD BE ASKED TO APPROVE THE MERGER WHICH WILL RESULT IN THE CREATION OF THE US'S SECONDLARGEST PRODUCER OF COAL AND COPPER WITH 28 BILLION IN REVENUE AND 5 BILLION IN ASSETS CYPRUS HAS AGREED TO ACQUIRE AMAX FOR AS MUCH AS 14 BILLION IN STOCK CYPRUS AND AMAX HAVE ALSO BEEN THE NO 1 AND NO 2 US PRODUCERS OF MOLYBDENUM BUT MONDAY THE JUSTICE DEPARTMENT APPROVED THEIR PROPOSED MERGER AFTER CYPRUS AGREED TO SELL ITS PRIMARY MOLYBDENUM MINE AND AMAX AGREED TO SELL A MOLYBDENUM ROASTING FACILITY IT COULDN'T BE LEARNED WHAT OTHER MINING COMPANIES MIGHT BE PART OF THE JUSTICE DEPARTMENT INVESTIGATION SPOKESWOMEN FOR TWO OTHER MOLYBDENUM PRODUCERS MAGMA COPPER CO SAN MANUEL ARIZ AND KENNECOTT CORP A SALT LAKE CITY UNIT OF RTZ CORP SAID THEY HADN'T BEEN CONTACTED BY FEDERAL AUTHORITIES A SPOKESMAN FOR PHELPS DODGE CORP A MINING CONCERN IN PHOENIX SAID HE WAS UNAWARE OF THE INVESTIGATION IRONICALLY THE JUSTICE DEPARTMENT PROBE COMES AS THE MOLYBDENUM INDUSTRY IS JUST BEGINNING TO RECOVER FROM A LONG SLUMP CAUSED BY SLOWDOWNS IN STEEL PRODUCTION AND OIL DRILLING BOTH INDUSTRIES MAKE WIDE USE OF THE METAL WHICH IS FREQUENTLY A BYPRODUCT OF COPPER MINING IN 1992 MOLYBDENUM PRICES HIT 20YEAR LOWS SELLING FOR 160 TO 170 A POUND COMPARED WITH AS MUCH AS 20 A POUND IN THE LATE 1970S OF ABOUT 200 MILLION POUNDS OF MOLYBDENUM PRODUCED ANNUALLY AROUND THE WORLD ROUGHLY ONETHIRD IS MINED IN THE US IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CYPRUS FELL 50 CENTS OR 21 TO 22875 WHILE AMAX FELL 375 CENTS OR 17 TO 2150 9311100087 931110 BUSINESS BRIEF AMERITECH CITIBANK PLAN TO OFFER SERVICES ON SCREEN TELEPHONES CHICAGO AMERITECH CORP AND CITIBANK SAID THEY PLAN TO OFFER TELEPHONE AND BANKING SERVICES DELIVERED TO THE HOME USING SCREEN TELEPHONES THE NEW DEVICES TO BE LAUNCHED IN A PILOT PROGRAM NEXT SPRING WILL ENABLE CONSUMERS IN THE CHICAGO AREA TO BANK PAY BILLS ESTABLISH ELECTRONIC DIRECTORIES SCAN DETAILED VOICEMAIL MESSAGES AND USE OTHER ENHANCED TELEPHONE SERVICES AMERITECH BASED HERE IS ONE OF THE REGIONAL BELL PHONE COMPANIES BANKING COMPANY CITIBANK IS A UNIT OF CITICORP OF NEW YORK AMERITECH INITIALLY WILL SELL THE SCREEN TELEPHONES WHICH HAVE A DIGITAL DISPLAY AND A TYPEWRITERLIKE KEYBOARD LATER THE DEVICES MAY BE AVAILABLE FROM A VARIETY OF MANUFACTURERS THROUGH A NUMBER OF DISTRIBUTION OUTLETS AND OTHER FEATURES INCLUDING TICKET BUYING HOME SHOPPING AND LICENSE RENEWALS MAY BE ADDED IN THE FUTURE AND THE SERVICES EVENTUALLY MAY BE AVAILABLE THROUGH A PERSONAL COMPUTER A NUMBER OF COMPANIES HAVE SOUGHT TO MERGE PHONE AND BANKING SERVICES BUT WITH MIXED SUCCESS AMERICAN TELEPHONE & TELEGRAPH CO AND HUNTINGTON BANCSHARES INC IN MARCH CANCELED THEIR THREEYEAR SMART PHONE 2100 PROJECT AFTER SPENDING MORE THAN 10 MILLION EACH STILL AN AMERITECH SPOKESMAN SAID RESEARCH INDICATES THAT 10 TO 20 OF HOUSEHOLDS WOULD BE INTERESTED IN SUCH A PRODUCT THE AMERITECH SPOKESMAN SAID THE NEW VENTURE OFFERS DIFFERENT FEATURES AND USES A DIFFERENT MARKETING APPROACH THAN THE SMART PHONE 2100 PROJECT BUT DECLINED TO PROVIDE MARKET ESTIMATES OR THE COST OF THE VENTURE 9311100086 931110 ALASKA PIPELINE REGULATOR SEEKS CHANGE AS AUDIT CRITICIZES OPERATION UPKEEP BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL GOVERNMENT'S TOP TRANSALASKA PIPELINE REGULATOR CALLED FOR SWEEPING REFORMS IN THE WAY THE OIL INDUSTRY RUNS THE PIPELINE FOLLOWING SUBMISSION OF THE FINAL REPORT OF A GOVERNMENTHIRED AUDIT TEAM JIM BACA DIRECTOR OF THE BUREAU OF LAND MANAGEMENT WHICH HAS BROAD POWER TO REGULATE THE PIPELINE SAID HE WAS OUTRAGED BUT NOT SURPRISED BY THE FINDINGS OF THE AUDIT WHICH WAS CONDUCTED FOR THE GOVERNMENT BY A TEAM OF ENGINEERS LED BY OWEN THERO MR THERO'S REPORT IS HARSHLY CRITICAL OF ALYESKA PIPELINE SERVICE CO'S ABILITY TO DETECT SIGNIFICANT OIL SPILLS AND TO COPE WITH EARTHQUAKES AMONG OTHER THINGS THE OILINDUSTRY CONSORTIUM OPERATES THE PIPELINE UNDER THE DIRECTION OF SUCH OIL COMPANIES AS EXXON CORP BRITISH PETROLEUM LTD AND ATLANTIC RICHFIELD CO THE REPORT WAS DELIVERED TO BLM AND OTHER GOVERNMENT OFFICIALS LATE LAST WEEK ALYESKA PRESIDENT DAVID PRITCHARD SAID ALYESKA IS REVIEWING THE AUDIT HE SAID THE CONSORTIUM IS CONCERNED ABOUT WIDESWEEPING STATEMENTS AND CLASSIFICATIONS USED IN MR THERO'S REPORT BUT HE SAID THAT ALYESKA INTENDS TO COOPERATE WITH THE GOVERNMENT TO ADDRESS ISSUES RAISED BY THE AUDIT THE GENERAL CONCLUSIONS OF MR THERO'S REPORT ALREADY WERE KNOWN BUT THE DETAILS CAME TO LIGHT ONLY YESTERDAY AMONG OTHER THINGS THE REPORT DOCUMENTS MASSIVE VIOLATIONS OF NATIONAL ELECTRIC CODES THAT IT SAYS COULD CAUSE FIRES OR OTHER PIPELINE FAILURES IT FINDS THAT THE PIPELINE IS EXTREMELY VULNERABLE TO ALASKA'S OCCASIONAL EARTHQUAKES BECAUSE SAFETY FEATURES HAVE BEEN ALLOWED TO LAPSE IN MORE THAN 400 SPOTS THE PIPELINE HAS SHIFTED OVER THE 16 YEARS IT HAS BEEN IN USE SO MUCH SO THAT IT IS TOUCHING ITS METAL SUPPORTS IT WAS DESIGNED TO BE SUSPENDED BY STRUTS IN THE CENTER OF THOSE SUPPORTS TO ALLOW IT TO SHAKE DURING AN EARTHQUAKE THE REPORT ALSO SAYS NUMEROUS GAUGES VALVES AND OTHER IMPORTANT EQUIPMENT ARE SUBSTANDARD OR IMPROPERLY CALIBRATED IN MANY CASES THE AUDITORS FOUND THAT TOOLS USED TO CALIBRATE EQUIPMENT ARE THEMSELVES INACCURATE THE REPORT SAYS THE PIPELINE'S LEAKDETECTION SYSTEM DESIGNED TO AUTOMATICALLY SHUT DOWN THE PIPELINE IF A SPILL OF MORE THAN A FEW THOUSAND BARRELS OCCURS IS SO POORLY MAINTAINED THAT IT MIGHT NOT DETECT EVEN SPILLS OF UP TO 10000 BARRELS OF OIL MOREOVER MR THERO'S TEAM FOUND THAT THE PIPELINE'S INSPECTION AND QUALITYCONTROL OPERATIONS THE SUBJECT OF MUCH CRITICISM FROM WHISTLEBLOWERS AND SOME MEMBERS OF CONGRESS IN RECENT YEARS DO NOT FUNCTION PARTLY BECAUSE TOP MANAGERS FOSTER A CLIMATE IN WHICH INSPECTORS ARE HARRASSED OR OTHERWISE DISCOURAGED IF THEY RAISE TOO MANY SAFETY AND ENVIRONMENTAL CONCERNS THE REPORT STATES THE REPORT CONCLUDES THAT THE PIPELINE WHICH DELIVERS 25 OF THE OIL PRODUCED IN THE US FACES NUMEROUS IMMINENT THREATS THAT IF UNCORRECTED COULD CAUSE ACCIDENTS RESULTING IN DEATHS OR INJURIES OR IN A MAJOR FAILURE OF THE PIPELINE AND IT CRITICIZES ALYESKA'S TOP MANAGEMENT SAYING THAT IT HAS NOT ONLY FAILED TO PREVENT OR CORRECT THESE TYPES OF PROBLEMS BUT HAS FAILED EVEN TO RECOGNIZE THE NEED TO DO SO THE RESULTANT RISKS THE REPORT CONCLUDES CAN BE SERIOUS OR EVEN CATASTROPHIC THE REPORT WILL BE THE CENTERPIECE OF CONGRESSIONAL HEARINGS SCHEDULED FOR TODAY ON ALYESKA'S SAFETY AND ENVIRONMENTAL RECORD AND THE OVERALL CONDITION OF THE PIPELINE ALYESKA HAS LONG MAINTAINED THAT ITS OPERATIONS WERE SAFE AND ENVIRONMENTALLY SOUND 9311100085 931110 ABREAST OF THE MARKET INDUSTRIALS FALL 783 AFTER STAGING EARLY RALLY OVER INFLATION REPORT BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK A SOLID EARLY RALLY IN STOCKS DISSOLVED AS ENTHUSIASM OVER AN UPBEAT INFLATION REPORT GAVE WAY TO PROFITTAKING A SURPRISING 02 DROP IN THE LABOR DEPARTMENT'S OCTOBER PRODUCER PRICE INDEX A MEASURE OF WHOLESALE LEVEL INFLATION SENT BOTH STOCKS AND BONDS SURGING YESTERDAY MORNING WITH INVESTORS RELIEVED THAT THEIR RECENT INFLATION FEARS MIGHT HAVE BEEN UNFOUNDED THE DOW JONES INDUSTRIAL AVERAGE JUMPED 21 POINTS IN EARLY TRADING AS THE 30YEAR TREASURY BOND RALLIED MORE THAN A POINT BUT STOCK PRICES ERODED AS THE DAY PROGRESSED THE INDUSTRIAL AVERAGE SLIPPED INTO NEGATIVE TERRITORY AT MIDAFTERNOON AND NEVER RECOVERED CLOSING WITH A LOSS OF 783 POINTS OR 021 TO 364007 THE 30YEAR TREASURY BOND ROSE 5/8 POINT WITH ITS YIELD DROPPING TO 614 FROM 620 MONDAY BROADBASED INDEXES MANAGED TO CLING TO MODERATE GAINS THROUGH THE CLOSE NEW YORK STOCK EXCHANGE ADVANCERS OUTNUMBERED DECLINERS 1195 TO 900 BIG BOARD VOLUME JUMPED TO 275864000 SHARES FROM A MODERATE 231211000 SHARES MONDAY DESPITE THE POSITIVE DATA ON PRODUCER PRICES ANALYSTS SAID INVESTORS STILL FACE SEVERAL UNCERTAINTIES AMONG THEM ARE TODAY'S REPORT ON CONSUMER PRICES AND NEXT WEEK'S EXPECTED CONGRESSIONAL VOTE ON THE NORTH AMERICAN FREE TRADE AGREEMENT I STILL THINK THERE ARE A LOT OF PEOPLE LOOKING TO SELL ABOVE 3650 ON THE INDUSTRIAL AVERAGE SAID DALE TILLS VICE PRESIDENT OF TRADING AT CHARLES SCHWAB & CO I STILL THINK PEOPLE FEEL THE RISK IS TO THE DOWNSIDE CONSEQUENTLY THEY ARE BEING CAREFUL AND TAKING SOME PROFITS THE STANDARD & POOR'S 500STOCK INDEX INCHED UP 012 OR 003 TO 46033 THE NEW YORK STOCK EXCHANGE COMPOSITE STOCK INDEX ADDED 025 OR 010 TO 25497 AND THE DOW JONES EQUITY MARKET INDEX ROSE 025 OR 006 TO 43539 THE NASDAQ COMPOSITE INDEX MEANWHILE JUMPED 363 POINTS OR 047 TO 76984 BUT THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX DECLINED 058 OR 012 TO 47602 PETER ANDERSON CHIEF INVESTMENT OFFICER AT IDS ADVISORY GROUP SAID HE EXPECTS INVESTORS TO OVERCOME THEIR JITTERS IN COMING WEEKS HE EXPECTS INFLATION TO STAY IN CHECK AND INTEREST RATES TO REMAIN STABLE CLEARING THE WAY FOR A YEAREND STOCK RALLY WE HAVE A VERY NERVOUS MARKET BUT SOONER OR LATER FUNDAMENTALS DO OVERCOME EVERYTHING ELSE AND THE FUNDAMENTALS FOR THE BOND MARKET AND THE STOCK MARKET ARE QUITE POSITIVE MR ANDERSON SAID ALAN ACKERMAN MARKET STRATEGIST AT REICH & CO THOUGH SAID HE EXPECTS THE UNCERTAIN FATE OF NAFTA TO DAMP ANY MARKET RALLIES IN THE NEXT WEEK HE EXPECTS FINANCIAL MARKETS TO SLIDE IF THE TREATY IS DEFEATED BY LAWMAKERS BOSTON CHICKEN A NEW STOCK ISSUE STOLE THE SPOTLIGHT ON THE NASDAQ STOCK MARKET YESTERDAY THE RESTAURANT CHAIN'S SHARES ROCKETED 28 1/2 TO 48 1/2 UP 143 FROM ITS INITIAL OFFERING PRICE OF 20 A SHARE MONDAY THE GAIN WAS THE BIGGEST OPENINGDAY LEAP OF ANY INITIAL PUBLIC OFFERING IN THE PAST TWO YEARS TOBACCO STOCKS JUMPED AFTER RJR NABISCO DISCLOSED PLANS TO INCREASE ITS CIGARETTE PRICES SHARES OF THE NEW YORK COMPANY TOPPED THE BIG BOARD MOST ACTIVE LIST UP 3/8 TO 6 3/4 ON SIX MILLION SHARES PHILIP MORRIS ROSE 1 TO 55 3/4 AMERICAN BRANDS INCHED UP 1/8 TO 33 1/4 SEVERAL OTHER MAJOR CONSUMER PRODUCTS STOCKS ALSO RALLIED PEPSICO ADDED 7/8 TO 39 KELLOGG INCREASED 1 3/8 TO 58 1/2 GENERAL MILLS ROSE 3/8 TO 61 3/8 AND CHURCH & DWIGHT CLIMBED 1/4 TO 25 3/4 NEXTEL COMMUNICATIONS ADVANCED 1 1/4 TO 47 1/4 ON THE NASDAQ IT AGREED TO ACQUIRE A BLOCK OF MOBILE RADIO LICENSES FROM MOTOROLA IN EXCHANGE FOR A 20 STAKE IN THE RUTHERFORD NJ COMPANY AND 260 MILLION IN FINANCING SHARES OF MOTOROLA BASED IN SCHAUMBURG ILL ADDED 1 TO 99 3/4 ON THE BIG BOARD WALMART STORES ADDED 3/8 TO 28 5/8 AND LIMITED GAINED 1/2 TO 20 1/2 WALMART A DISCOUNT RETAILER BASED IN BENTONVILLE ARK REPORTED A THIRDQUARTER PROFIT OF 23 CENTS A SHARE UP FROM 19 CENTS A SHARE A YEAR EARLIER LIMITED A COLUMBUS OHIO APPAREL STORE COMPANY HAD THIRDQUARTER EARNINGS OF 23 CENTS A SHARE UP FROM 22 CENTS A SHARE A YEAR EARLIER DILLARD DEPARTMENT STORES THOUGH FELL 1 1/2 TO 37 1/2 AFTER IT SAID THIRDQUARTER EARNINGS FELL TO 38 CENTS A SHARE FROM 40 CENTS A SHARE A YEAR EARLIER THE LITTLE ROCK ARK COMPANY RECORDED A ONETIME CHARGE OF SEVEN CENTS A SHARE IN THE LATEST QUARTER BANC ONE CLIMBED 1 3/8 TO 37 1/8 AFTER SMITH BARNEY SHEARSON BOOSTED ITS INVESTMENT RATING ON THE COLUMBUS OHIO BANKING COMPANY'S STOCK TO BUY FROM NEUTRAL SCIMED LIFE SYSTEMS FELL 4 3/8 TO 41 3/8 AFTER ALEX BROWN & SONS ANALYST JONATHAN OSGOOD CUT HIS RATING ON THE MAPLE GROVE MINN MEDICAL DEVICE CONCERN'S STOCK TO HOLD FROM BUY HE CITED INCREASED COMPETITIVE PRESSURES IN THE CORONARY ANGIOPLASTY BUSINESS BELLSOUTH DROPPED 7/8 TO 58 1/4 AND QVC NETWORK SLIPPED 7/8 TO 52 ON THE NASDAQ THE ATLANTABASED BABY BELL IS NEAR AN AGREEMENT TO INVEST 15 BILLION IN QVC A MOVE THAT WOULD AID QVC'S EFFORTS TO ACQUIRE PARAMOUNT COMMUNICATIONS PARAMOUNT LOST 1 1/8 TO 81 WHILE CLASS B SHARES OF VIACOM ANOTHER BIDDER FOR THE NEW YORK MEDIA COMPANY WAS UNCHANGED AT 48 1/2 ON THE AMERICAN STOCK EXCHANGE ON THE BIG BOARD FLUOR ADDED 2 TO 41 3/8 MORRISON KNUDSEN ROSE 3/4 TO 23 3/4 AND CBI INDUSTRIES GAINED 1 1/4 TO 29 1/2 SMITH BARNEY SHEARSON INITIATED COVERAGE OF THE THREE ENGINEERING SERVICES COMPANIES RATING FLUOR AND CBI BUY AND MORRISON NEUTRAL 9311100084 931110 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 42 DAYS 308 43 TO 59 DAYS 332 60 TO 89 DAYS 330 90 TO 149 DAYS 333 150 TO 239 DAYS 338 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 339 60 DAYS 339 90 DAYS CERTIFICATES OF DEPOSIT 255 ONE MONTH 272 TWO MONTHS 275 THREE MONTHS 282 SIX MONTHS 301 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 3 ONE MONTH 330 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 323 60 DAYS 323 90 DAYS 323 120 DAYS 323 150 DAYS 323 180 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 643 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 8 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 311 13 WEEKS 328 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 691 60 DAYS 7 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 690 60 DAYS 7 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 9311100083 931110 INTERNATIONAL ELF AQUITAINE PARIS FRENCH ECONOMICS MINISTER EDMOND ALPHANDERY CONFIRMED YESTERDAY THAT THE PRIVATIZATION OF FRENCH OIL COMPANY SOCIETE NATIONALE ELF AQUITAINE WILL FOLLOW THAT OF FRENCH CHEMICALS AND DRUG GROUP RHONEPOULENC SA ELF WILL THEN BE THE THIRD ON THE 21COMPANY PRIVATIZATION LIST TO BE SOLD ON THE MARKET UNDER THE CONSERVATIVE COALITION GOVERNMENT THAT TOOK OFFICE AT THE END OF MARCH 9311100082 931109 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 ECI TELECOM LTD'S THIRDQUARTER EARNINGS OF 22 CENTS A SHARE AFTER ADJUSTING FOR A 2FOR1 STOCK SPLIT PAYABLE TODAY WERE BETTER THAN THE AVERAGE OF FOUR ANALYSTS' ESTIMATES OF 21 CENTS A SHARE RESULTING IN A POSITIVE EARNINGS SURPRISE OF 48 BECAUSE OF AN ERROR IN THE ZACKS INVESTMENT RESEARCH DATABASE ECI TELECOM WAS INCORRECTLY SHOWN AS A NEGATIVE SURPRISE IN THE QUARTERLY EARNINGS SURPRISES TABLE TUESDAY 9311100081 931110 JUSTICE DEPARTMENT TAKES OVER PROBE OF THRIFT OWNED BY CLINTON ASSOCIATE BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE JUSTICE DEPARTMENT'S CRIMINAL DIVISION HAS TAKEN OVER THE INVESTIGATION OF AN ARKANSAS THRIFT OWNED BY A BUSINESS ASSOCIATE OF PRESIDENT CLINTON'S AFTER THE US ATTORNEY IN LITTLE ROCK TOOK HERSELF OUT OF THE CASE THE DEPARTMENT SAID US ATTORNEY PAULA CASEY AND HER STAFF DECIDED TO RECUSE THEMSELVES BECAUSE OF THEIR FAMILIARITY WITH SOME OF THE PEOPLE INVOLVED WITH MADISON GUARANTY SAVINGS & LOAN ASSOCIATION WHICH FAILED IN 1989 AND ANOTHER DEFUNCT LITTLE ROCK LENDER CAPITAL MANAGEMENT SERVICES INC LAST MONTH THE RESOLUTION TRUST CORP ASKED MS CASEY TO INVESTIGATE WHETHER MORE THAN 250000 IN BUSINESS LOANS MAY HAVE BEEN DIVERTED FROM MADISON GUARANTY FOR IMPROPER PURPOSES INCLUDING RETIRING DEBTS FROM MR CLINTON'S 1984 GUBERNATORIAL CAMPAIGN UNTIL IT WAS TAKEN OVER BY FEDERAL REGULATORS THE THRIFT WAS OWNED BY JAMES MCDOUGAL A FRIEND AND BUSINESS PARTNER OF MR CLINTON WHO ALSO RAISED FUNDS FOR HIS CAMPAIGNS MR MCDOUGAL AND HIS WIFE SUSAN WERE PARTNERS WITH BILL AND HILLARY RODHAM CLINTON IN A MONEYLOSING REALESTATE VENTURE KNOWN AS WHITEWATER DEVELOPMENT CORP MS CASEY'S OFFICE ALSO HAS BEEN INVESTIGATING LOANS MADE BY CAPITAL MANAGEMENT AN INVESTMENT COMPANY TO SUSAN MCDOUGAL AND ARKANSAS GOV JIM GUY TUCKER AMONG OTHERS DURING THE MID1980S THE COMPANY HAD BEEN CHARTERED AND FUNDED BY THE SMALL BUSINESS ADMINISTRATION TO LEND MONEY TO THE DISADVANTAGED THE OWNER OF CAPITAL MANAGEMENT DAVID HALE HAS BEEN INDICTED ON FEDERAL FRAUD CHARGES UNRELATED TO THE LOANS MR HALE A FORMER MUNICIPAL JUDGE IN LITTLE ROCK BLAMES HIS COMPANY'S DOWNFALL PARTLY ON THE 300000 LOAN TO SUSAN MCDOUGAL AND TWO TUCKER LOANS HE SAYS HE MADE THE LOANS AS FAVORS TO FRIENDSAND IN THE CASE OF MRS MCDOUGAL AFTER LOBBYING BY MR CLINTON WHITE HOUSE OFFICIALS SAY THE PRESIDENT DOESN'T RECALL EVER DISCUSSING THE LOAN WITH MR HALE MS CASEY IS AN APPOINTEE OF PRESIDENT CLINTON'S AND A FRIEND OF THE CLINTONS HER HUSBAND A LAWYER HAS A STATEGOVERNMENT POST THE RECUSAL WAS INTENDED TO ENSURE THAT THERE BE NO MISPERCEPTIONS ABOUT THE IMPARTIALITY OF THE PARALLEL MADISON GUARANTY AND CAPITAL MANAGEMENT INVESTIGATIONS JOHN KEENEY ACTING ASSISTANT ATTORNEY GENERAL SAID DONALD MACKAY A SENIOR TRIAL ATTORNEY IN THE CRIMINALFRAUD SECTION IN WASHINGTON IS TAKING CHARGE OF THE INVESTIGATIONS HE WILL BE ASSISTED BY TWO OTHER WASHINGTONBASED PROSECUTORS SEPARATELY REPUBLICAN LAWMAKERS ASKED HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ TO HOLD HEARINGS ON MADISON GUARANTY MINORITY MEMBERS ON THE PANEL EXPECT REP GONZALEZ A TEXAS DEMOCRAT KNOWN TO BE A POLITICAL MAVERICK TO HEED THEIR REQUEST EVEN THOUGH AN INQUIRY INTO THE THRIFT'S FINANCIAL DEALINGS ISN'T LIKELY TO PLEASE THE WHITE HOUSE MEANWHILE AT THE REQUEST OF HOUSE SMALL BUSINESS COMMITTEE CHAIRMAN JOHN LAFALCE THE SBA IS LOOKING INTO THE CAPITAL MANAGEMENT CASE INCLUDING THE LOAN TO SUSAN MCDOUGAL AND LOANS TO COMPANIES IN WHICH MR TUCKER HAD AN OWNERSHIP INTEREST SBA OFFICIALS ARE TO REPORT BACK TO REP LAFALCE A NEW YORK DEMOCRAT BY MONDAY MR HALE WHO DENIES ANY WRONGDOING HAS OFFERED TO TESTIFY ABOUT THE LOANS MESSRS MCDOUGAL AND TUCKER DENY MR HALE'S CLAIMS THAT HE WAS PRESSURED INTO MAKING THE LOANS 9311100080 931110 SPEAKING OF BUSINESS NAFTA WON'T WORK WITHOUT GATT BY LINDLEY H CLARK JR MOST OF THE US CRITICS OF THE NORTH AMERICAN FREE TRADE AGREEMENT FOCUS THEIR ATTENTION ON ENVIRONMENTAL ISSUES AND THE EFFECT ON US JOBS THE ENVIRONMENTAL CONCERN CENTERS ON THE MEXICOUS BORDER WHERE NEW FACTORIES ARE EXPECTED TO CAUSE PROBLEMS WELL THERE WILL BE PROBLEMS BUT BOTH GOVERNMENTS HAVE PLEDGED EFFORTS TO MINIMIZE THEM THE JOB QUESTION IS LESS EASILY HANDLED THERE WILL BE JOB LOSSES DURING A TRANSITION PERIOD AS MEXICAN FACTORIES WITH THE HELP OF FREE TRADE BEGIN TO MOVE MORE DEEPLY INTO US MARKETS FOR CLOTHING AND OTHER SOFT GOODS AFTER THE TRANSITION HOWEVER MEXICO WILL BE AN EVEN BETTER CUSTOMER FOR USPRODUCED ELECTRONIC PRODUCTS AND OTHER GOODS PRODUCED BY SKILLED WORKERS BUT THE MORE IMPORTANT QUESTION IN THE VIEW OF MANY ECONOMISTS IS WHAT NAFTA AND OTHER REGIONAL FREE TRADE AGREEMENTS WILL DO TO THE GLOBAL FREE TRADE SYSTEM NAFTA SUPPORTERS TELL US NOT TO WORRY LOOK AT THE EUROPEAN COMMUNITY IN 1957 WHEN THE TREATY OF ROME LAUNCHED THE EC THERE WERE THOSE WHO FORESAW THE DOOM OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE AFTER ALL GATT FOUNDED IN 1948 WAS BASED ON THE MOST FAVORED NATION PRINCIPLE EACH SIGNER WAS SUPPOSED TO EXTEND TO EVERYONE THE SAME TRADE PRIVILEGES THAT IT EXTENDED TO ITS MOST FAVORED NATION IF EVERYONE WENT ALONG WITH THE IDEA FREE TRADE COULD CONQUER THE WORLD SINCE THE SIGNERS ACCOUNTED FOR 85 OF WORLD TRADE THE EC CLOUDED THIS OUTLOOK EC MEMBERS WOULD MOVE TOWARD FREE TRADE AMONG THEMSELVES BUT THEY WOULD MAINTAIN A FIRM TARIFF WALL AGAINST OUTSIDERS HOW DID THIS FIT INTO GATT'S AIMS WELL GATT RATHER RELUCTANTLY ACCEPTED THE EC AS AN EXCEPTION SO THERE WAS WIDESPREAD SURPRISE WHEN THE COMMUNITY'S FOUNDING WAS FOLLOWED IN 1962 BY GATT'S HIGHLY SUCCESSFUL KENNEDY ROUND OF TRADE LIBERALIZATION SIMILARLY IN 1974 THE EC'S CONTINUING EXPANSION WAS FOLLOWED BY THE TOKYO ROUND ANOTHER SUCCESS KYLE BAGWELL OF NORTHWESTERN AND ROBERT STAIGER OF STANFORD REMARK IN A NATIONAL BUREAU OF ECONOMIC RESEARCH WORKING PAPER THAT REGIONAL TRADE AGREEMENTS CAME TO BE REGARDED AS HELPFUL TO GATT NOT ANTITHETICAL ATTITUDES HAVE CHANGED LATELY THOUGH GATT'S URUGUAY ROUND HAS DRAGGED ON AND ON SOME CRITICS HAVE BEEN WILLING TO ACCEPT REGIONAL AGREEMENTS AS SUPPLEMENTS TO GATT BUT WONDER WHAT THE WORLD WOULD BE LIKE WITHOUT AN EFFECTIVE GATT THE GENERAL AGREEMENT AFTER ALL HAS BEEN USEFUL IN CONTROLLING THE REGIONAL AGREEMENTS' RELATIONS WITH THE REST OF THE WORLD IF THE REGIONALS WIND UP GOING IT ALONE WE'RE IN FOR REAL PROBLEMS THE INSTITUTE FOR INTERNATIONAL ECONOMICS IN AN ASSESSMENT OF NAFTA SUGGESTS THAT THE WORLD COULD EVOLVE INTO TWO COMPETING TRADE GROUPS THE EC AND A LOOSER PACIFIC BASIN GROUP INCLUDING NAFTA BUT EXPANDING TO INCLUDE EAST ASIAN COUNTRIES IF BOTH GROUPS ACCEPTED GATT PRINCIPLES WE COULD HAVE A FUNCTIONING SYSTEM THERE WOULD BE STIFF COMPETITION BETWEEN THE TWO BIG GROUPS BUT IT COULD BE HANDLED MAYBE IT COULD WORK BUT I HOPE WE DON'T HAVE TO TRY IT THE EC IS HAVING TROUBLES ENOUGH OF ITS OWN THE RELUCTANCE OF SOME EC COUNTRIES NOTABLY FRANCE TO ACCEPT GATT PROPOSALS FOR FREER TRADE IN AGRICULTURE IS ONE FACTOR THAT IS HOLDING UP THE URUGUAY ROUND THE EUROPEANS ARE ARGUING AMONG THEMSELVES ABOUT WHERE THE EC SHOULD GO AND HOW FAST IT SHOULD MOVE AFTER A GOOD DEAL OF CONTROVERSY IT WAS FINALLY DECIDED TO PUT THE EUROPEAN CENTRAL BANK IN FRANKFURT BUT THAT'S ALREADY THE HOME OF THE GERMAN BUNDESBANK AND SOME EUROPEANS UPSET BY THE BUNDESBANK'S HIGH INTEREST RATES PRESUMABLY WILL TRY TO MAKE SURE THAT THE NEW INSTITUTION DOESN'T ACT TOO MUCH LIKE ITS NEIGHBOR IN GERMANY THERE ALREADY IS CONTROVERSY OVER HOW QUICKLY THE EC SHOULD MOVE TOWARD FULL UNITY A COMMON CURRENCY ENVISIONED BY EC PLANNERS IS DISLIKED BY SOME MEMBERS NOTABLY BRITAIN EVEN THOUGH NAFTA WILL HAVE FEW POLITICAL FRILLS MEMBERS STILL WILL HAVE A LOT TO ARGUE ABOUT AND THE ARGUMENTS SURELY WILL INCREASE IF THE NORTH AMERICANS SEEK TO INTEGRATE EAST ASIA INTO THE SETUP SOME OF THE ARGUMENTS WILL RAISE QUESTIONS ABOUT JUST HOW FIRMLY THE MEMBERS ARE COMMITTED TO FREE TRADE THE NEW CANADIAN GOVERNMENT FOR INSTANCE IS CONVINCED THAT NAFTA WILL MAKE IT TOO EASY FOR THE US TO COMPLAIN WHEN THE CANADIANS WANT TO UNLOAD SOME EXCESS GRAIN ON THE US PRESIDENT BILL CLINTON IS TRYING TO PERSUADE SUGARPRODUCING STATES TO SUPPORT NAFTA BY ARRANGING TIGHTER RESTRICTIONS ON SUGAR IMPORTS OTHER CONCESSIONS MAY BE MADE EVEN THOUGH THE AGREEMENT AS C FRED BERGSTEN OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS SAYS ALREADY IS MORE FAVORABLE TO THE US THAN ANY SUCH AGREEMENT NEGOTIATED IN THE PAST CENTURY TO REPEAT THE REGIONAL AGREEMENTS WILL WORK AS LONG AS GATT REMAINS AN EFFECTIVE OVERSEER WITHOUT AN EFFECTIVE GATT THEY STILL COULD WORK FOR THE MEMBERS OF THE LARGE TRADE BLOCS THE CHIEF SUFFERERS WOULD BE THE DEVELOPING NATIONS THAT BELONG TO NO BIG TRADE BLOC THESE COUNTRIES ARE THE ONES THAT BENEFIT MOST FROM GATT'S EFFORTS TO OPEN WORLD TRADE FOR THE BENEFIT OF ALL 9311100079 931110 BUSINESS BRIEFS TECUMSEH PRODUCTS CO SAID THAT UNITED AUTO WORKERS LOCAL 459 RATIFIED A LABOR CONTRACT AT ITS DIECAST DIVISION IN SHEBOYGAN FALLS WIS SETTLING A STRIKE THAT HAD BEEN IN EFFECT SINCE OCT 6 MCFARLAND ENERGY INC AN INDEPENDENT PRODUCER OF OIL AND NATURAL GAS HAS AGREED TO PURCHASE THE 40ACRE STAR FEE PROPERTY IN THE MIDWAY SUNSET OIL FIELD IN KERN COUNTY CALIF FOR 16 MILLION WESTINGHOUSE ELECTRIC CORP SIGNED A LETTER OF INTENT WITH TAIWAN'S MINISTRY OF ECONOMIC AFFAIRS TO CREATE BUSINESS VENTURES RANGING FROM POWER SYSTEMS AND ENVIRONMENTAL TECHNOLOGY TO ELECTRONIC SYSTEMS AND INDUSTRIAL TECHNOLOGY CONTROL DATA SYSTEMS INC SIGNED A LETTER OF INTENT TO ACQUIRE CLOSELY HELD MICHAEL BUSINESS SYSTEMS PLC A LONDON COMPUTERSYSTEMSINTEGRATIONS CONCERN TERMS OF THE TRANSACTION ARE BEING NEGOTIATED A UNIT OF GREAT AMERICAN COMMUNICATIONS CO HAS SIGNED A LETTER OF INTENT TO SELL ITS WLZR AM/FM RADIO STATION MILWAUKEE TO LAKEFRONT COMMUNICATIONS INC A UNIT OF SAGA COMMUNICATIONS INC FOR ABOUT 7 MILLION IN CASH PEOPLES TELEPHONE CO SAID IT ACQUIRED ASCOM COMMUNICATIONS INC A BOCA RATON FLA OPERATOR OF PAY TELEPHONES AND OTHER SERVICES FOR 40 MILLION PEOPLES TELEPHONE IS A MIAMI PAYTELEPHONE COMPANY 9311100078 931110 BOTTOM FISHERS COMMERCIAL PROPERTY LURES HORDE OF BUYERS HOPING FOR A BOUNCE BUT AS THEY POUR IN BILLIONS ECONOMICS OF THE DEALS STEADILY BECOME RISKIER PROSPECTUS OR MIRACLE PAGES' BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL THE MARKET IN COMMERCIAL REAL ESTATE TURNED AROUND FASTER THAN ALMOST ANYONE EXPECTED FAST ENOUGH IN FACT THAT IT'S ALREADY GETTING TOUGH TO FIND BARGAINS WHEN LOS ANGELES INVESTOR THOMAS BARRACK JR FIRST SOUGHT LOANS TO BUY AILING COMMERCIAL PROPERTY TWO YEARS AGO THE IDEA OF BETTING ON WHEN PRICES WOULD STOP THEIR SICKENING PLUNGE SEEMED SO RASH THAT ONE BANKER CAUTIONED HIM TOM I REALLY THINK YOU'VE LOST IT HERE NOW NOT ONLY IS MR BARRACK NOT OUT THERE ALONE BUT HE FINDS HIMSELF COMPETING AGAINST A JOSTLING PACK OF AGGRESSIVE NEW BUYERS DRIVING UP PRICES OF APARTMENT COMPLEXES SHOPPING CENTERS AND EVEN OFFICE BUILDINGS YOU HAVE BIDDING FRENZIES MARVELS MR BARRACK CHIEF EXECUTIVE OF COLONY CAPITAL INC IN LOS ANGELES TALK TO ME ON SOME DAYS I'M SCREAMING THESE GUYS ARE IDIOTS' I THINK A LOT OF THE NEW MONEY DOESN'T UNDERSTAND THE RISK THEY'RE BUYING REAL ESTATE LIKE THEY'RE BUYING A GOVERNMENT BOND SO LIKE MR BARRACK MANY OF THE EARLY BIRDS WHO PIONEERED THE MARKET NOW ARE SINGING A DIFFERENT TUNE BUYER BEWARE THE BEST DEALS HAVE BEEN DONE THE INITIAL PUBLIC OFFERING DOCUMENTS FOR SOME NEW REITS REAL ESTATE INVESTMENT TRUSTS CONTAIN ASSUMPTIONS ABOUT THINGS LIKE CASH FLOW AND OCCUPANCY RATES SO ROSY THAT SKEPTICAL PROFESSIONAL INVESTORS ARE DUBBING THEM THE MIRACLE PAGES THEY TEND TO TAKE INTO ACCOUNT WHAT COULD GO RIGHT NOT WHAT COULD GO WRONG SAYS MARTIN COHEN WHO RUNS A REALESTATE SECURITIES FUND FOR NEW YORKBASED COHEN & STEERS CAPITAL MANAGEMENT INC WHAT CHANGED THE MARKET SO FAST WAS WORD THAT A HANDFUL OF SAVVY INVESTORS LIKE MR BARRACK WERE EXPECTING TO NET MORE THAN 30 A YEAR BY IMMEDIATELY RESELLING DISTRESSED PROPERTIES AND DELINQUENT REALESTATE LOANS TO SMALLER INVESTORS THEY BOUGHT AT SUCH A DISCOUNT THAT IT WASN'T NECESSARY TO WAIT FOR IMPROVEMENT IN OCCUPANCY RATES AND CASH FLOWS TO PROFIT THEY COULD SIMPLY FLIP THEM THIS SET OFF A STAMPEDE THAT INCLUDED NOT ONLY INVESTMENT HEAVYWEIGHTS LIKE GEORGE SOROS LEON BLACK AND MICHAEL STEINHARDT BUT ALSO THOUSANDS OF MUCH SMALLER INDIVIDUAL INVESTORS THEY HAVE POURED BILLIONS INTO PROPERTY THAT HAS BEEN NEWLY PACKAGED INTO REITS THE AMOUNT INVESTED IN THESE PUBLICLY TRADED REALESTATE COMPANIES ALONG WITH PRIVATE BULK SALES OF DISTRESSED COMMERCIAL REAL ESTATE IS ESTIMATED AT SOME 25 BILLION SINCE LATE 1991 HOW FAST THE MARKET HAS SHIFTED IS EVIDENT IN TWO RECENT DEALS BY BANKAMERICA CORP JUST LAST JULY IT SOLD TO A MORGAN STANLEY & CO FUND A PORTFOLIO OF DISTRESSED REALESTATE LOANS WITH A FACE VALUE OF 135 BILLION THE PRICE ONLY 475 MILLION THE MORGAN STANLEY FUND EXPECTS TO MAKE AT LEAST 500 MILLION ON THE DEAL AFTER RESELLING THE LOANS OR UNDERLYING PROPERTIES ACCORDING TO A PROSPECTUS FOR BONDS IT ISSUED TO FINANCE THE DEAL BUT ON MONDAY BANKAMERICA AGREED TO SELL ANOTHER BATCH OF WEAK REALESTATE LOANS AT A FAR SMALLER DISCOUNT BUYERS LED BY GOLDMAN SACHS & CO WILL PAY 70 OF FACE VALUE THAT IS TWICE THE 35 OF FACE VALUE THAT MORGAN STANLEY PAID ALTHOUGH PART OF THE CHANGE IS DUE TO A BETTER QUALITY OF ASSETS ANOTHER GAUGE OF THE EVOLVING MARKET CAN BE SEEN IN SOMETHING THE INDUSTRY CALLS DERIVED INVESTMENT VALUE OR DIV WHICH MEASURES THE CASH FLOW THAT A PROPERTY IS EXPECTED TO THROW OFF IN RECENT MONTHS BIDS ON LARGE PORTFOLIOS HAVE JUMPED FROM ABOUT 70 OF DIV TO 100 AND MORE BEFORE THE SELLERS WERE CHASING THE BUYERS NOW ALL OF A SUDDEN IT'S THE BUYERS CHASING THE SELLERS SAYS JEFFREY GAULT CHAIRMAN OF SOLIS PROPERTY CO IN LOS ANGELES ONE OF THE EARLY BUYERS OF DISTRESSED PROPERTY THE RISING PRICES PROMPT SOME VETERAN REALESTATE INVESTORS TO WORRY THAT THE RISKREWARD RATIO IS TURNING UNFAVORABLE THEY WARN THAT SUBSTANTIAL LONGTERM GAINS ON NEW INVESTMENTS MAY WELL DEPEND ON COMMERCIAL REALESTATE VALUES NOT JUST STABILIZING WHICH MOST OBSERVERS AGREE HAS HAPPENED BUT INCREASING CALCULATING WHEN THAT MIGHT HAPPEN IS TRICKY WITH MOST OF THE COUNTRY STILL OVERBUILT GAINS IN VALUE HINGE ON COMPLEX ISSUES INVOLVING APARTMENT DEMOGRAPHICS SHOPPING AND OFFICEUSE TRENDS AND ABOVE ALL THE STRENGTH OF THE ECONOMIC RECOVERY TAKE RETAILING PROPERTIES THEY ARE LURING THE INVESTING PUBLIC AS ONE MALL DEVELOPER AFTER ANOTHER GOES PUBLIC BY CONVERTING HIS HOLDINGS INTO A REIT WILL THE RETAIL ENVIRONMENT MAKE THESE PROPERTIES APPRECIATE THE LONGTERM PROSPECTS FOR THE BALANCE OF THE DECADE DON'T SHOW MUCH NET GROWTH FOR RETAIL SALES WARNS ISAAC LAGNADO AN ANALYST AT NEW YORKBASED TACTICAL RETAIL SOLUTIONS INC ANOTHER DANGER THE GROWTH OF HUGE DISCOUNT STORES COULD MAKE ENCLOSED REGIONAL MALLS THE DINOSAUR OF THE RETAIL INDUSTRY SAYS LOUIS GARDAY PRESIDENT OF BURNHAM PACIFIC PROPERTIES INC A RETAILPROPERTY REIT WHAT ABOUT APARTMENT BUILDINGS IN THE SOUTHWEST INVESTMENT IN APARTMENTS IS BOOMING AS THE REGIONAL ECONOMY IMPROVES AND RENTS RISE BUT THE SCRAMBLE BY A GROWING NUMBER OF REITS TO ACQUIRE PROPERTIES IN THE REGION IS RAPIDLY DRIVING APARTMENTBUILDING PRICES HIGHER THE PRICES ARE NO LONGER IN LINE WITH THE DEMAND FROM RENTERS SAYS MICHAEL EVANS HEAD OF REAL ESTATE FOR ERNST & YOUNG THE ACCOUNTING FIRM NATIONWIDE SAYS HOUSING ANALYST TODD ZIMMERMAN OF CLINTON NJ THE JURY IS STILL OUT ON LONGTERM GROWTH PROSPECTS IN THE APARTMENT MARKET THEN THERE'S THE OFFICE SECTOR WHERE THE NATIONWIDE VACANCY RATE HAS BEGUN EDGING DOWN BUT REMAINS ALMOST 20 WORSE MANY COMPANIES NOW ARE TRYING TO USE LESS OFFICE SPACE IN ORDER TO CUT COSTS WHEN YOU HAVE ANY MARKET COPPER TIN OR OIL AND THERE'S A 20 OVERSUPPLY THAT'S A MARKET THAT'S VERY DIFFICULT TO MAKE MONEY IN SAYS H DALE HEMMERDINGER PRESIDENT OF NEW YORKBASED ATCO PROPERTIES & MANAGEMENT INC WHAT MAKES YOU THINK THAT AS AN INVESTOR JOHN Q PUBLIC CAN BE SMARTER THAN SOMEONE WHO'S BEEN IN THE BUSINESS ALL HIS LIFE BUT MANY PEOPLE DO AND NOT JUST THE UNSOPHISTICATED WHEN BARING ADVISORS IN NEW YORK RECENTLY SURVEYED 27 PENSIONFUND MANAGERS 63 EXPRESSED OPTIMISM ABOUT THE INVESTMENT POTENTIAL OF REAL ESTATE UP FROM JUST 15 IN 1992 AS FOR THE PUBLIC SKIMPY CD RATES MAKE THE 7ORSO INITIAL YIELDS ON NEW REALESTATE INVESTMENT TRUSTS MIGHTY TEMPTING ESPECIALLY SINCE INVESTORS WHO TOOK A CHANCE ON THEM LAST WINTER HAVE SEEN THEIR SHARES RISE AS OF THE END OF OCTOBER EQUITY REIT RETURNS SHARE APPRECIATION PLUS DIVIDEND YIELDS TOTALED ABOUT 25 THIS YEAR COMPARED WITH 99 FOR THE S&P 500 JACQUELINE DEY AN EXPERIENCED STOCKMARKET INVESTOR WHO RUNS HER OWN EXECUTIVESEARCH FIRM IN NEWPORT BEACH CALIF BOUGHT 700 SHARES OF SOUTHWESTERN PROPERTY TRUST AT ABOUT 14 A SHARE IN MAY A LEVEL AT WHICH IT CONTINUES TO TRADE IT'S KIND OF LIKE A UTILITY INCOME AND GROWTH SHE SAYS OF THE DALLASBASED APARTMENT COMPANY THE DIVIDEND WILL GIVE HER A 63 ANNUAL RETURN BASED ON THE PURCHASE PRICE HER THREE BROKERS CONTINUE TO PEPPER HER WITH PITCHES ON REITS JUST COMING TO THE MARKET BUT SHE IS MOVING SLOWLY LIKE ANY OTHER IPO SHE SAYS YOU'VE GOT TO STUDY THE BALANCE SHEET CAREFULLY SMALL INVESTORS INCREASINGLY LEAVE THE DETAILS TO MUTUAL FUNDS A FIDELITY REIT FUND HAS BALLOONED TO ROUGHLY 500 MILLION FROM JUST 60 MILLION IN MID1992 BUT BARRY GREENFIELD WHO MANAGES IT AGREES THAT WITH THE FLOOD OF NEW DEALS COMING OUT IT IS TRICKIER TO INVEST SAFELY NOW THAT THE MARKET HAS BROADENED OUT UNDERWRITERS CAN SELL ANYTHING HE SAYS THERE'S A SUCKER FOR ANYTHING AS OF MIDOCTOBER HE SAID HE HAD DECLINED TO BUY INTO SEVEN OF THE MOST RECENT 11 OFFERINGS VETERAN BOTTOMFISHER SAM ZELL PUNCTURED THE FESTIVE ATMOSPHERE OF THE REIT INDUSTRY'S ANNUAL CONVENTION LAST MONTH BY WARNING THAT UNDERWRITING DISCIPLINE IS ERODING THE FRENZY OF REIT CREATION IS BEGINNING TO PUSH WALL STREET TO THE OUTSIDE OF THE RISK ENVELOPE HE SAID IF WE CONTINUE TO THINK WE REIT OPERATORS CAN PUT IT OVER ON INVESTORS AND WE DO THIS WILL BE A VERY SHORTLIVED PHENOMENON SOME REIT BUYERS ALREADY HAVE DISCOVERED THE DOWNSIDE A HALFDOZEN OF THE MORE THAN 25 REIT OFFERINGS THIS YEAR ARE TRADING BELOW THEIR OFFERING PRICES INCLUDING SOME SHOPPINGMALL STOCKS FEW EXPERTS EXPECT THEM TO TANK HOWEVER RATHER THEY SAY THE MARKET WILL BEGIN TO REWARD ONLY THE BETTER COMPANIES IDENTIFYING THESE REQUIRES LOOKING PAST THE YIELD TO A COMPANY'S GROWTH PROSPECTS AND THAT MEANS ANSWERING SOME OF THE SAME THORNY QUESTIONS CONFOUNDING MANY MARKET EXPERTS THERE ARE CERTAIN TIMES IN THE STOCK CYCLE WHEN I WOULD SAY CLOSE YOUR EYES AND THROW A DART YOU CAN'T MISS' THIS IS NOT THE TIME TO PICK REITS HAPHAZARDLY SAYS ALLEN SINAI PRESIDENT OF ECONOMIC ADVISORS INC A UNIT OF LEHMAN BROTHERS DUE DILIGENCE ON THE PART OF THE INVESTOR IS VERY VERY IMPORTANT