IN AN ENCOURAGING SIGN FOR THE COMING CHRISTMAS SEASON FOUR LARGE RETAILERS BENEFITED FROM HIGHER CONSUMER DEMAND BUT REPORTED MIXED FISCAL THIRDQUARTER PROFITS WALMART STORES INC LIMITED INC AND NORDSTROM INC POSTED EARNINGS GAINS DILLARD DEPARTMENT STORES INC'S PROFIT FELL BUT THE COMPANY BLAMED THE IMPACT OF RECENT TAXLAW CHANGES ANALYSTS NEVERTHELESS REMAINED CAUTIOUS IT'S STILL PRETTY VOLATILE SAID JANET MANGANO AN ANALYST AT BURNHAM SECURITIES WALMART CITED INCREASED SPENDING IN REPORTING AN 18 GAIN IN NET INCOME FOR ITS THIRD QUARTER ENDED OCT 31 TO 5187 MILLION OR 23 CENTS A SHARE FROM 4378 MILLION OR 19 CENTS A SHARE A YEAR EARLIER ADJUSTED TO REFLECT A 2FOR1 STOCK SPLIT LAST FEBRUARY THE COUNTRY'S LARGEST RETAILER SAID SALES ROSE 23 TO 1683 BILLION FROM 1368 BILLION A YEAR EARLIER WALMART ALSO BENEFITED FROM IMPROVING MARGINS FOR ITS SAM'S CLUB WAREHOUSE DIVISION SAID ANALYSTS THOUGH SALES AT SAM'S CLUBS OPEN A YEAR OR MORE WERE STILL DOWN SLIGHTLY FOR THE QUARTER PROFIT MARGINS ARE IMPROVING BECAUSE PRICE COMPETITION IN THE WAREHOUSE CLUB INDUSTRY IS EASING NOTED LINDA T KRISTIANSEN OF WERTHEIM SCHRODER & CO THE SAM'S CLUB DIVISION ACCOUNTED FOR 21 OF THE COMPANY'S SALES IN THE QUARTER SOME ANALYSTS WERE DISAPPOINTED THAT SELLING GENERAL AND ADMINISTRATIVE EXPENSES AT NORMALLY THRIFTY WALMART ROSE 269 FROM THE YEAREARLIER QUARTER NEARLY HALF A PERCENTAGE POINT MORE THAN EXPECTED OVERALL THOUGH RESULTS MET ANALYSTS' EXPECTATIONS AND DAVID GLASS PRESIDENT AND CHIEF EXECUTIVE OF THE BENTONVILLE ARKBASED COMPANY SAID WALMART REMAINS ON TRACK TO MEET PROJECTED SALES OF 68 BILLION TO 69 BILLION FOR THE YEAR FOR ITS FIRST NINE MONTHS WALMART SAID NET INCOME ROSE 18 TO 147 BILLION OR 64 CENTS A SHARE FROM 125 BILLION OR 54 CENTS A SHARE A YEAR EARLIER ADJUSTED FOR THE STOCK SPLIT SALES ROSE 23 TO 4698 BILLION FROM 3836 BILLION DILLARD DEPARTMENT STORES LITTLE ROCK ARK SAID A CHARGE OF 8 MILLION OR SEVEN CENTS A SHARE FROM THE RETROACTIVE EFFECT OF FEDERAL TAX CHANGES CAUSED NET INCOME FOR ITS FISCAL THIRD QUARTER ENDED OCT 30 TO SLIDE 47 TO 424 MILLION OR 38 CENTS A SHARE FROM 444 MILLION OR 40 CENTS A SHARE A YEAR EARLIER SALES ROSE 54 TO 123 BILLION FROM 117 BILLION A YEAR EARILER AND ALTHOUGH SALES AT STORES OPEN A YEAR OR MORE ROSE JUST 3 ANALYSTS NOTED THAT SAMESTORE SALES PICKED UP STEAM THROUGHOUT THE QUARTER GOING FROM A 1 GAIN IN AUGUST TO A 7 IMPROVEMENT IN OCTOBER JEFFREY EDELMAN AN ANALYST AT CJ LAWRENCE SAID DILLARD ALSO HAS MADE PROGRESS IN CONTROLLING INVENTORIES REDUCING MARKDOWNS AND REDUCING EXPENSES FOR THE FIRST NINE MONTHS NET INCOME ROSE 3 TO 1298 MILLION OR 115 A SHARE FROM 126 MILLION OR 112 A SHARE A YEAR EARLIER SALES FOR THE PERIOD ROSE 10 TO 35 BILLION FROM 317 BILLION A YEAR EARLIER LIMITED BASED IN COLUMBUS OHIO REPORTED A 28 GAIN IN NET INCOME FOR THE QUARTER ENDED OCT 31 AND ANALYSTS ATTRIBUTED THE SHOWING TO WEAKERTHANEXPECTED SALES AT THE COMPANY'S EXPRESS LIMITED STORES AND LERNER WOMEN'S APPAREL DIVISIONS BUT ANALYSTS SAID THE PROBLEM AT THE FLAGSHIP LIMITED STORES DIVISION WASN'T DEMAND BUT RATHER ITS INABILITY TO GET ENOUGH HOTSELLING PRODUCTS IN ITS STORES AS A RESULT SAMESTORE SALES AT THE LIMITED STORES DIVISION FELL FROM A YEAR EARLIER THE FACT THAT GROSS MARGINS IMPROVED AND THE AVERAGE TRANSACTION WAS UP REFLECTS THAT LIMITED STORES HAS BETTER PRODUCT THAN IN THE PAST BUT THE INVENTORY SHORTFALL SHOWS THAT LIMITED STORES STILL NEEDS TO REFINE ITS EXECUTION SAID MR EDELMAN IN THE QUARTER LIMITED SAID NET INCOME ROSE TO 822 MILLION OR 23 CENTS A SHARE UP FROM 799 MILLION OR 22 CENTS A SHARE A YEAR EARLIER SALES WERE FLAT AT 162 BILLION AT EXPRESS THE COMPANY'S BIGGEST DIVISION SALES AT STORES OPEN AT LEAST A YEAR WERE FLAT COMPARED WITH A YEAR EARLIER WHEN EXPRESS HAD ITS BEST QUARTER IN THE COMPANY'S HISTORY LIMITED SAID IN THE FIRST NINE MONTHS LIMITED'S NET INCOME FELL 79 TO 1947 MILLION OR 53 CENTS A SHARE FROM 2116 MILLION OR 58 CENTS A SHARE A YEAR EARLIER SALES ROSE 68 TO 482 BILLION FROM 452 BILLION IN SEATTLE NORDSTROM SAID GENERALLY IMPROVING SALES HELPED IT POST AN 87 INCREASE IN NET INCOME TO 255 MILLION OR 31 CENTS A SHARE IN THE PERIOD ENDED OCT 31 FROM 234 MILLION OR 29 CENTS A SHARE A YEAR EARLIER SALES CLIMBED 44 TO 7694 MILLION FROM 7373 MILLION THE UPSCALE DEPARTMENT STORE CHAIN WHICH IN FEBRUARY WARNED THAT INCREASING OPERATING EXPENSES DRIVEN BY A COSTLY PROGRAM TO RENOVATE ITS STORES WOULD HURT FULLYEAR RESULTS SAID YESTERDAY THAT EFFORTS TO REDUCE THE GROWTH OF SUCH EXPENSES PAID OFF IN THE THIRD QUARTER A SPOKESWOMAN SAID NORDSTROM EXPECTS CHRISTMAS SALES WILL MEET OR EXCEED RESULTS IN THE YEARAGO HOLIDAY PERIOD FOR THE NINEMONTH PERIOD NORDSTROM'S EARNINGS FELL 84 TO 794 MILLION OR 97 CENTS A SHARE FROM 867 MILLION OR 106 A SHARE SALES ROSE 55 TO 248 BILLION FROM 235 BILLION IN TRADING ON THE NEW YORK STOCK EXCHANGE WALMART CLOSED AT 28625 UP 375 CENTS DILLARD CLOSED AT 3750 DOWN 150 AND LIMITED CLOSED AT 2050 UP 50 CENTS ON THE NASDAQ STOCK MARKET NORDSTROM CLOSED AT 3475 UP 75 CENTS CHRISTINA DUFF CONTRIBUTED TO THIS ARTICLE 9311100076 931110 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN TAX SIMPLIFICATION COULD MEAN HIGHER TAXES FOR SOME PEOPLE A SIMPLIFICATION AND TECHNICAL CORRECTIONS BILL APPROVED RECENTLY BY THE HOUSE WAYS AND MEANS COMMITTEE INCLUDES A FEW PROVISIONS DESIGNED TO RAISE REVENUE ONE CHANGE GENERALLY WOULD TAX INCOME PEOPLE RECEIVE FROM RENTING OUT THEIR HOMES FOR EVEN A FEW DAYS UNDER CURRENT LAW INCOME FROM RENTING YOUR HOME FOR FEWER THAN 15 DAYS A YEAR IS TAXFREE SOME SHORTTERM LANDLORDS WOULD ESCAPE INCOME FROM RENTALS OF FEWER THAN 15 DAYS WOULD BE EXEMPT IF THE HOME WERE RENTED TO VISITORS AT EVENTS FOR WHICH COMMERCIAL ACCOMMODATIONS COULD PROVIDE NO MORE THAN HALF THE NEEDED HOUSING CRITICS SAY THE MEASURE DESIGNED TO RAISE 97 MILLION OVER FIVE YEARS WOULD BE TOUGH TO ENFORCE THE BILL'S OUTLOOK IS CLOUDY SAYS GARY GASPER A FORMER TREASURY TAX ADVISER WHO IS NOW WITH LAW FIRM KECK MAHIN & CATE EVEN IF THE HOUSE APPROVES IT THE BILL MAY RUN INTO ROUGH SEAS IN THE SENATE CONGRESS TRIES TO FIX A MISTAKE THAT COULD HURT SAVINGSBOND HOLDERS THE NEW LAW SIGNED AUG 10 BY PRESIDENT CLINTON CONTAINS ERRORS THAT LAWMAKERS NOW ARE TRYING TO ERASE WITH THE TECHNICAL CORRECTIONS BILL ONE BLOOPER AFFECTS US SAVINGS BONDS CURRENT LAW ALLOWS SOME PEOPLE TO AVOID ANY TAX ON INTEREST FROM SAVINGS BONDS ISSUED AFTER 1989 AND REDEEMED TO PAY HIGHEREDUCATION COSTS THIS EXCLUSION IS PHASED OUT FOR HOLDERS WITH INCOME ABOVE CERTAIN THRESHOLDS WHICH ARE RESET EACH YEAR TO REFLECT INFLATION ALAS THE NEW LAW CONTAINS A MISTAKE THAT CHANGED THE BASE YEAR FOR INFLATION ADJUSTMENTS TO 1992 FROM 1989 THAT WOULD CUT THE 1994 THRESHOLD AND THUS REDUCE THE ATTRACTIVENESS OF SAVINGS BONDS FOR SOME PEOPLE THE PROPOSED BILL WOULD MAKE 1989 THE BASE YEAR AGAIN THE 1993 THRESHOLD FOR MODIFIED ADJUSTED GROSS INCOME IS 68250 FOR JOINT RETURNS OR 45500 FOR OTHERS MUTUALFUND INVESTORS BEWARE OF A PAINFUL YEAREND TAX TRAP THINK TWICE BEFORE INVESTING IN MANY STOCK AND BOND FUNDS OVER THE NEXT FEW WEEKS FINANCIAL ADVISERS SAY IT MAY PAY TO DELAY ANY BIG MOVES UNTIL LATE DECEMBER OR EARLY JANUARY THAT IS BECAUSE FUNDS USUALLY DISTRIBUTE CAPITAL GAINS TO SHAREHOLDERS LATE EACH YEAR TYPICALLY IN DECEMBER AND MANY FUNDS HAVE AMASSED LARGE GAINS THIS YEAR RECIPIENTS WILL OWE 1993 TAXES ON THOSE PAYOUTS EVEN IF THEY INVESTED IN THE FUND RECENTLY BY WAITING JUST A FEW MORE WEEKS THEY COULD AVOID THE TAX THUS BEFORE INVESTING ASK A FUND IF IT PLANS A CAPITALGAINS PAYOUT SOON HOW MUCH WHEN AND WHEN SHARES MAY BE BOUGHT WITHOUT THE DISTRIBUTION FIDELITY MAGELLAN THE NATION'S BIGGEST FUND PLANS A DECEMBER PAYOUT TO SHAREHOLDERS OF RECORD DEC 9 AND FIDELITY PURITAN TO HOLDERS OF RECORD DEC 16 INVESTMENT CO OF AMERICA PLANS A DECEMBER PAYOUT TO HOLDERS OF RECORD AT THE START OF BUSINESS DEC 17 AND WASHINGTON MUTUAL INVESTORS FUND TO HOLDERS OF RECORD DEC 23 MANY TAXFREE BOND FUNDS ALSO PLAN 1993 CAPITALGAINS DISTRIBUTIONS TOO LAZY TO COLLECT MANY UPPERINCOME AMERICANS ROUTINELY OVERPAY TAXES THROUGH WITHHOLDING OR OTHER PREPAYMENTS AND THEN PASS UP A CHANCE TO GET REFUNDS BECAUSE THEY DON'T FILE RETURNS AS THEY ARE REQUIRED TO IRS COMMISSIONER RICHARDSON SAYS ABOUT 40 OF THESE HIGHINCOME NONFILERS OVERPAID THEIR TAXES IN RECENT YEARS FRUSTRATION GROWS OVER THE CLINTON ADMINISTRATION'S LENGTHY DELAY IN PICKING A NEW IRS CHIEF COUNSEL THE JOB HAS BEEN VACANT SINCE JANUARY AND ADMINISTRATION OFFICIALS HAD HOPED TO FILL THE POST BY EARLY FALL DAVID JORDAN CONTINUES AS ACTING CHIEF COUNSEL MANY PEOPLE FEARING AN ACCIDENT OR ILLNESS THAT COULD LEAVE THEM UNABLE TO MANAGE THEIR AFFAIRS GIVE A DURABLE POWER OF ATTORNEY TO A TRUSTED RELATIVE FRIEND OR PROFESSIONAL ADVISER THIS DOCUMENT LETS THE OTHER PERSON HANDLE YOUR FINANCES IF YOU CAN'T BUT AS A RECENT IRS PRIVATE RULING SHOWS IT ISN'T ALWAYS ENOUGH JUST TO PICK SOMEONE TRUSTWORTHY IT ALSO CAN BE VITAL TO ADD A FEW WORDS TO THE STANDARD FORM IF YOU WANT THE HOLDER TO BE ABLE TO MAKE GIFTS ON YOUR BEHALF MICHAEL INSEL AND FRED NATHAN LAWYERS AT KELLEY DRYE & WARREN SAY OTHERWISE UPON YOUR DEATH THE IRS MAY SUBJECT THOSE GIFTS TO ESTATE TAXES CLEAR WORDING ALSO MAY HELP AVERT UGLY BATTLES WITH FAMILY MEMBERS OR OTHERS IT'S AMAZING HOW FEW PEOPLE FOCUS ON THIS PROBLEM AND HOW EASY IT IS TO SOLVE IT SAYS MR NATHAN YOU CAN ALSO LIMIT THE SIZE AND TYPES OF GIFTS YOU AUTHORIZE AND IDENTIFY RECIPIENTS OR SIMPLY AUTHORIZE GIFTS BASED ON YOUR PAST PATTERN OF GIVING BRIEFS HUMORIST JIM BOREN PROPOSES A CONSTITUTIONAL AMENDMENT REQUIRING ANY RETROACTIVE TAX INCREASES TO BE FOLLOWED BY RETROACTIVE ELECTIONS FOR PRESIDENT VICE PRESIDENT AND ALL MEMBERS OF CONGRESS THE IRS IS AUTHORIZED TO SPEND 734 BILLION IN THE YEAR ENDING SEPT 30 UP NEARLY 233 MILLION FROM THE PREVIOUS YEAR 9311100075 931110 CREDIT MARKETS DROP IN PRICE INDEX BUOYS 30YEAR TREASURYS WHILE NAFTA WORRIES DEPRESS MEXICAN BONDS BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FOR THOSE INVESTING IN BONDS NORTH OF THE BORDER THERE WAS MORE CONFIDENCE YESTERDAY FOR THOSE INVESTING IN BONDS SOUTH OF IT THERE WAS LESS NEWS THAT PRICES DECLINED IN OCTOBER AS MEASURED BY THE PRODUCER PRICE INDEX PUSHED UP THE PRICE OF THE BENCHMARK 30YEAR US TREASURY BOND 5/8 POINT OR 675 FOR A BOND WITH 1000 FACE VALUE TO 101 10/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF PRICE DROPPED TO 614 FROM 620 MONDAY OTHER TREASURY SECURITIES POSTED MUCH SMALLER GAINS THIS WAS PARTLY DUE TO WEAK DEMAND AT AN AUCTION OF THREEYEAR NOTES THE FIRST PART OF THE TREASURY'S MULTIBILLIONDOLLAR QUARTER REFUNDING US COMPANIES RUSHED TO TAKE ADVANTAGE OF THE LOW RATES BY SELLING MORE THAN 4 BILLION OF NEW SECURITIES YESTERDAY BUT WORRY ABOUT LAST NIGHT'S SCHEDULED DEBATE ON THE NORTH AMERICAN FREE TRADE AGREEMENT BETWEEN ROSS PEROT AND VICE PRESIDENT AL GORE WAS BAD NEWS FOR THE MEXICAN BOND MARKETS YIELDS ON MEXICAN TREASURY BILLS JUMPED AS MUCH AS A FULL PERCENTAGE POINT AS INVESTORS HUNKERED DOWN FOR THE DEBATE THE JUMP WAS SPARKED IN PART BY A DECISION BY MEXICO'S CENTRAL BANK TO ABANDON LONGHELD STABILIZATION LEVELS FOR THE PESO THE CURRENCY FELL 4 AGAINST THE DOLLAR YESTERDAY THE YIELD OF MEXICAN TREASURY BILLS MATURING IN 28 AND 90 DAYS KNOWN AS CETES JUMPED BY A PERCENTAGE POINT SAID ROBERT CITRONE A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS ONE OF THE LARGEST US INVESTORS IN THE CETES MARKET THE 28DAY CETES YIELD ROSE TO 145 AND THE 90DAY YIELD ROSE TO 1425 HE SAID THE 28DAY CETES HAD YIELDED AS LITTLE AS 1247 THREE WEEKS AGO SAID MR CITRONE THE CURRENCY DEVALUATIONS HAD MUCH TO DO WITH THE YIELD JUMP BUT A LOT OF IT IS NAFTA SAID MR CITRONE THAT CETES YIELDS WOULD RISE ON THE DAY OF THE DEBATE DIDN'T SURPRISE MANY INVESTORS INCLUDING MR CITRONE THE LAST TIME YIELDS ROSE SHARPLY HE SAYS WAS IN SPRING 1992 WHEN ROSS PEROT STARTED CRITICIZING NAFTA IN APRIL AND MAY 1992 28DAY CETES ROSE FROM 11 TO 20 BUT THE RISING YIELD AND THE PESO'S SHARP DROP ARE A DOUBLE WHAMMY FOR MILLIONS OF US INVESTORS WHO OWN PESODENOMINATED MEXICAN SECURITIES OR INVEST IN FUNDS THAT HOLD THE SECURITIES THAT'S BECAUSE SHARP YIELD CHANGES ALSO MEAN SHARP PRICE CHANGES A FALLING PESO MEANS THAT INVESTORS CONVERTING THEIR HOLDINGS INTO DOLLARS WILL RECEIVE FEWER DOLLARS FOR THEIR INVESTMENT FOREIGN INVESTORS HOLD ABOUT 55 BILLION IN PESODENOMINATED SECURITIES ACCORDING TO MR CITRONE ABOUT HALF OF ALL CETES ARE OWNED BY FOREIGNERS MANY CETES INVESTORS HAD BEGUN TO SCALE DOWN THEIR HOLDINGS IN RECENT MONTHS INCLUDING FIDELITY OUT OF FEARS OF A BIG DEVALUATION BUT MANY SAY THEY AREN'T LOSING CONFIDENCE IN MEXICO WITH OR WITHOUT A NAFTA AGREEMENT WE'VE ACTUALLY BEEN INCREASING OUR OVERALL EXPOSURE TO MEXICO SAID MR CITRONE THE OVERALL ECONOMIC FUNDAMENTALS WILL CONTINUE TO BE STRONG WITH OR WITHOUT NAFTA MR CITRONE SAID HE SPOKE TO MEXICAN CENTRAL BANK OFFICIALS YESTERDAY AND SAID THAT THEY ALLOWED THE DEVALUATION TO BE PROACTIVE RATHER THAN REACTIVE IN OTHER WORDS THE MEXICAN CENTRAL BANK WAS INTERESTED IN GIVING THE PESO SOME BREATHING ROOM BEFORE THE PEROTGORE DEBATE AND THE CONGRESSIONAL VOTE ON THE TRADE TREATY SCHEDULED FOR NOV 17 HE SAID DESPITE THE UNCERTAINTY A 110 MILLION PRIVATE PLACEMENT OF ASSETBACKED NOTES IN THE EUROBOND MARKET FROM TRIBASA MEXICO'S SECONDLARGEST CONSTRUCTION COMPANY APPEARED TO MEET WITH STRONG DEMAND ACCORDING TO PEOPLE FAMILIAR WITH THE OFFERING THE ISSUE WHICH WAS UNDERWRITTEN BY SALOMON BROTHERS INTERNATIONAL IS BACKED BY THE REVENUE TO BE COLLECTED BY TRIBASA FROM ITS CONCESSIONS TO OPERATE TWO MEXICAN NATIONAL TOLL ROADS BOTH ROADS ARE IN REGIONS LIKELY TO BENEFIT FROM INCREASED US TRADE ABOUT 80 OF THE ISSUE WHICH SALOMON BEGAN TO MARKET MONDAY WAS SNAPPED UP BY AMERICAN INVESTORS AND THE REST BY EUROPEAN INVESTORS ACCORDING TO PEOPLE FAMILIAR WITH THE TRANSACTION TRIBASA HAD AN INITIAL PUBLIC STOCK OFFERING OF 303 MILLION IN THE US ON SEPT 22 ACCORDING TO PEOPLE FAMILIAR WITH THE DEAL TRIBASA HAS CALCULATED THAT IT CAN MAKE PAYMENTS ON THE NOTES EVEN IF TRAFFIC DOESN'T INCREASE ON THE TOLL ROADS MEANWHILE THE US TREASURYS MARKET RECEIVED A SOLID BOOST FROM BULLISH INFLATION NEWS YESTERDAY MORNING THE LABOR DEPARTMENT REPORTED THAT THE PRODUCER PRICE INDEX DROPPED 02 DURING OCTOBER NOWHERE NEAR THE 03 INCREASE MOST ECONOMISTS HAD BEEN FORECASTING THE PPI CAME OUT UNLIKE ANYBODY HAD EXPECTED IT WAS FAVORABLE FOR THE MARKET AND THEY IMMEDIATELY TOOK IT ALL THE WAY UP TO THE HIGHS SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN BIG GAINS IN THE CASE OF THE 30YEAR TREASURY MORE THAN A POINT EARLIER IN THE DAY SHRANK THANKS TO LACKLUSTER DEMAND AT THE FIRST LEG OF THE TREASURY'S HUGE QUARTERLY REFUNDING LACK OF CUSTOMER INTEREST RESULTED IN A POORLY ATTENDED AUCTION THE TREASURY DEPARTMENT AWARDED ITS 17 BILLION OFFERING OF THREEYEAR NOTES AT AN AVERAGE YIELD OF 444 WITH A HIGH YIELD OF 446 THE COUPON ON THE NEW THREEYEAR NOTE IS 4 3/8 BY LATE YESTERDAY THE WHENISSUED YIELD ON THE THREEYEAR NOTE HAD RISEN TO 447 YIELDS ON SHORTTERM SECURITIES FELL IN RECENT DAYS THE WHENISSUED THREEYEAR NOTE WAS YIELDING 456 ON FRIDAY ANOTHER REASON INVESTORS STAYED AWAY IS THAT DESPITE THE SOOTHING NEWS ON INFLATION THE PPI REPORT WAS NOT ENOUGH TO RID THE MARKET OF NERVOUSNESS ABOUT RECENT DATA SHOWING A STRONGER ECONOMY TRADERS MUST STILL CONTEND WITH THE OCTOBER CONSUMER PRICE INDEX REPORT WHICH IS SLATED TO BE RELEASED THIS MORNING THIS AFTERNOON THE GOVERNMENT WILL AUCTION 12 BILLION IN 10YEAR NOTES THE 10YEAR NOTE WAS YIELDING 563 IN WHENISSUED TRADING LATE YESTERDAY DOWN FROM 566 ON MONDAY HERE ARE THE RESULTS OF THE 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 THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED NOV 15 AND MATURE JAN 20 1994 MANY CORPORATE BOND PRICES ROSE NEARLY A POINT YESTERDAY AS MORE THAN 4 BILLION OF NEW NOTES AND BONDS WERE SOLD INCLUDING TWO BIG ASSETBACKED OFFERINGS AMONG THE LARGEST DEALS OUTSIDE THE MARKET FOR ASSETBACKED SECURITIES WERE TWO FROM CNA FINANCIAL AND U S WEST COMMUNICATIONS A UNIT OF U S WEST THE TWO SOLD 900 MILLION IN NEW NOTES AND BONDS IN THE JUNKBOND MARKET METHANEX AND NAVISTAR FINANCIAL A UNIT OF NAVISTAR INTERNATIONAL PRICED DEALS AT PAR THAT TRADED UP TRADERS SAID CASINO AMERICA ALSO WAS IN THE MARKET BONDS OF RJR NABISCO TRADED HIGHER IN THE SECONDARY MARKET FOLLOWING NEWS THAT RJ REYNOLDS TOBACCO INCREASED ITS CIGARETTE PRICES RJR'S 10 1/2 COUPON NOTES MATURING IN 1998 ROSE 7/8 POINT OR 875 FOR A BOND WITH 1000 FACE VALUE TO 110 1/2 THE YIELD DROPPED TO 765 FROM 787 RJR IS A UNIT OF RJR NABISCO HOLDINGS WE VIEW THIS MOVE AS A SYMBOLIC POSITIVE GESTURE ON THE PART OF RJR AND A WAY OF TESTING THE WATERS FOR A NEW ROUND OF PRICE INCREASES SAID EDWARD MALLY A BOND ANALYST AT SALOMON BROTHERS HOWEVER THE FINANCIAL GAIN FROM THE PRICE INCREASE IS RELATIVELY MINIMAL A RECENT JUMP IN ITS STOCK PRICE LEADS THE MARKET TO BELIEVE THAT RJR WILL BE LESS LIKELY TO SPLIT THE COMPANY INTO FOOD AND TOBACCO UNITS A MOVE THAT BONDHOLDERS VIEW NEGATIVELY JUNK BOND PRICES ROSE YESTERDAY IN ACTIVE TRADING WITH MANY POSTING GAINS OF 1/4 TO 1/2 POINT TRADING IN INVESTMENTGRADE BONDS WAS QUIET THOUGH MANY BONDS FOLLOWED THE GAINS IN THE TREASURY MARKET MUNICIPAL BONDS CLIMBED GENERALLY ENDING 1/4 TO 5/8 POINT HIGHER IN THE PRIMARY MARKET THE NEW YORK CITY MUNICIPAL WATER FINANCE AUTHORITY OFFERED 825 MILLION OF FISCAL 1994 SERIES B WATER & SEWER SYSTEM REVENUE REFUNDING BONDS THE OFFERING HAD BEEN INCREASED FROM 823 MILLION AT THE FINISH THE HAWAII DEPARTMENT OF BUDGET & FINANCE'S 545 OF 2023 SPECIALPURPOSE MORTGAGE REVENUE BONDS WERE UP 1/2 AT 97 1/4 TO 97 1/2 YIELDING 561 THE NEW YORK STATE POWER AUTHORITY'S 525 OF 2018 GENERALPURPOSE REFUNDING BONDS CLOSED 3/8 HIGHER AT 97 1/8 TO 97 3/8 YIELDING 545 MUNIS HAD BECOME OVERSOLD IN THE LAST FEW WEEKS THEY STARTING REBOUNDING MONDAY ON PERCEPTIONS THAT THE MARKET HAD BOTTOMED TRADERS SAY THE PRICE RISE IS PUSHING DOWN YIELDS SO PRICINGS OF SOME ISSUES HAVE BEEN MOVED UP NEW YORK CITY MUNICIPAL WATER FINANCE AUTHORITY'S BONDS WERE BROUGHT TO THE MARKET YESTERDAY RATHER THAN TODAY WHEN THEY HAD BEEN SCHEDULED SMITH BARNEY SHEARSON IS LEAD UNDERWRITER YIELDS FOR THE 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 INVESTORS SERVICE SINGLEAMINUS BY STANDARD & POOR AND SINGLEA BY FITCH INVESTORS SERVICE INSURED BONDS DUE IN 2019 CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE YEAREND FEVER IN THE ASSETBACKED MARKET WHEN COMPANIES REMOVE ASSETS FROM BALANCE SHEETS BY AN ASSET SECURITIZATION IS UNDER WAY HOUSEHOLD FINANCE YESTERDAY OFFERED TWO ISSUES BACKED BY GENERAL MOTORS CREDITCARD RECEIVABLES THE ISSUES LED BY CS FIRST BOSTON TOTALED 105 BILLION AND CAME TWO MONTHS AFTER THE FIRST GM CREDITCARD OFFERING A 953 MILLION DEAL THE GM LOANS HAVE AMONG THE FASTEST PAYMENT RATES AND LOWEST LOSSES IN THE INDUSTRY ACCORDING TO THE UNDERWRITERS CHRYSLER'S CHRYSLER FINANCIAL UNIT LAUNCHED A 15 BILLION THREEPART OFFERING OF AUTOLOAN SECURITIES THROUGH UNDERWRITER LED BY SALOMON BROTHERS THE ISSUE IS ABOUT TWO MONTHS AFTER THE CAR MAKER'S LAST OFFERING DANIEL CASTRO ASSETBACKED ANALYST AT MERRILL LYNCH EXPECTS ASSETBACKED ISSUANCE WILL TOTAL AT LEAST 60 BILLION THIS YEAR VOLUME THROUGH YESTERDAY IS SLIGHTLY MORE THAN 50 BILLION THE YEAREND RUSH OF DEALS OFTEN CAN RESULT IN LOWER PRICING BUT THE STRATEGY COULD BACKFIRE IF MONEY MANAGERS CLOSE THEIR BOOKS EARLY WHICH MANY APPEAR READY TO DO MEANWHILE THE MORTGAGE SECURITIES SECTOR FOLLOWING TREASURYS GAVE UP MOST OF ITS GAINS AFTER RISING SHARPLY EARLY YESTERDAY SENTIMENT SOURED AFTER A POOR TREASURY AUCTION IN THE AFTERNOON AMONG PRICES OF 6 1/2 SECURITIES FOR DECEMBER DELIVERY GINNIE MAES WERE UP 3/32 NEAR THE CLOSE AT 99 18/32 FREDDIE MACS AND FANNIE MAES BOTH WERE UP 5/32 AT 99 25/32 AND 99 19/32 RESPECTIVELY 9311100074 931110 REVIEW & OUTLOOK EDITORIAL HOW ABOUT 2008 CHINA'S BID FOR THE OLYMPICS IN 2000 WAS OBVIOUSLY INTENDED TO ATTRACT A HUGE MEASURE OF LEGITIMACY ALBEIT UNEARNED FROM INTERNATIONAL COVERAGE OF THE EVENT IT WOULD HAVE BEEN QUITE A COUP FOR THE STILLCOMMUNIST GOVERNMENT BUT WITH THE OLYMPICS HEADED FOR AUSTRALIA THE CHINESE GOVERNMENT APPARENTLY HAS DECIDED TO PROCEED WITH WHAT MIGHT BE CALLED THE POLITICAL EQUIVALENT OF VANITY PUBLISHING ON BEHALF OF DENG XIAOPING IT'S AN ODD AND IRONIC EXERCISE WHICH NONETHELESS OFFERS SOME INSIGHT INTO JUST WHAT IS AND IS NOT MAKING CHINA RUN THESE DAYS FIRST TO APPEAR WAS THE INITIAL VOLUME OF MY FATHER DENG XIAOPING AN ADORING BIOGRAPHY WRITTEN BY HIS DAUGHTER DENG RONG THEN THERE WAS THE OPENING OF THE RESEARCH CENTER ON DENG XIAOPING THEORY IN SHANGHAI AND JUST LAST WEEK THERE WAS THE PUBLICATION OF A NEW COLLECTION OF MR DENG'S SPEECHES WITH A GRANDDADDY OF A LAUNCH PARTY COMPLETE WITH TOAST BY GENERAL SECRETARY JIANG ZEMIN THE IRONY OF COURSE IS THAT DENG XIAOPING THEORY WILL BE REMEMBERED NOT FOR WHAT IT ATTEMPTED TO DO CREATE AN ECONOMIC BASE FOR THE RETENTION OF THE POWER OF THE COMMUNIST PARTY BUT WHAT IT UNLEASHED FORCES THAT WILL ULTIMATELY UNDERMINE THAT POWER BY RENDERING IT IRRELEVANT DENG XIAOPING'S ESSENTIAL INSIGHT IN THE LATE 1970S WAS THAT CHINESE WERE TIRED OF BEING POOR AND THAT THEY BLAMED THE PARTY FOR THEIR STATE SO IN ONE OF THE MORE POPULAR SLOGANS EVER DEVISED BY A COMMUNIST LEADER HE URGED THAT TO GET RICH IS GLORIOUS WHEN HE LOOSENED THE RULES ON PRIVATE ENTERPRISE FIRST IN THE COUNTRYSIDE AND THEN IN THE CITIES AND FACTORIES THE RESULT WAS SUSTAINED AND DRAMATIC THOUGH UNEVEN ECONOMIC GROWTH THE COMMUNIST PARTY THESE DAYS NEEDS ECONOMIC GROWTH THE WAY A FISH NEEDS WATER IT CANNOT SURVIVE WITHOUT IT IRONICALLY THE PARTY IS ALREADY LOSING DAYTODAY CONTROL OVER CHINA'S PEOPLE DUE TO THE SOCIAL CHANGES THAT ECONOMIC GROWTH HAS BROUGHT ECONOMIC MODERNIZATION HAS RESULTED IN THE BEGINNINGS OF A CONSUMER SOCIETY MAO SUITS ARE OUT WESTERN BUSINESS SUITS WITH LABELS SEWN ON ARE IN REVOLUTIONARY OPERAS ARE OUT MICHAEL JACKSON IS IN THE IRON RICE BOWL IS OUT MCDONALD'S IS IN IN SHANGHAI UPMARKET MALLS SELL EVERYTHING FROM NIKES TO FRENCH PERFUME IN BEIJING UPMARKET COUPLES HANG OUT AT FIVESTAR HOTELS IN GUANGZHOU IT IS INCREASINGLY DIFFICULT TO TELL THE DIFFERENCE BETWEEN NATIVES AND HONG KONG VISITORS CROWDS IN BEIJING CHEERED RECENTLY AS AMERICAN MICHAEL CHANG WON THE FIRST ATP MEN'S TENNIS TOURNAMENT THE SALEM OPEN EVEN MAOIST MODELS HAVE BEEN TURNED INTO CAPITALIST TOOLS LEI FENG WHOM MAO HELD UP AS A MODEL COMMUNIST SOLDIER IS NOW A MARKETING TOOL AMONG XIAMEN'S BANKS AND DAZHAI VILLAGE KNOWN NATIONWIDE FOR MAO'S EXHORTATION IN AGRICULTURE LEARN FROM DAZHAI IS TAKING LESSONS FROM OTHERS ELDERS FROM THE VILLAGE WHICH HAS FALLEN ON HARD TIMES JOURNEYED TO DAQIUZHUANG LAST YEAR TO LEARN THE LATTER'S SECRETS OF ECONOMIC SUCCESS UNFORTUNATELY IT BECAME CLEAR THAT DAQIUZHUANG WAS MERELY THE 1990S VERSION OF DAZHAI A MODEL VILLAGE THAT THRIVED THROUGH PROPAGANDA CONTACTS AND INTIMIDATION PART OF THE REASON FOR ALL THIS OF COURSE IS THAT SO MANY CHINESE ARE TRAVELING ABROAD GETTING A PASSPORT CAN STILL BE AN ORDEAL PARTICULARLY FOR THE YOUNG AMBITIOUS OR TROUBLESOME BUT THE TREND IS UNMISTAKABLE IN HONG KONG CHINESE TOUR BUSES ARE UBIQUITOUS AND RENMINBI EXCHANGE SHOPS HAVE SPRING UP IN AREAS NEAR THE HOTELS WHERE CHINESE TOURISTS LIKE TO STAY ASIAN BUSINESS MAGAZINE ESTIMATES THAT SOME FIVE MILLION MAINLAND CHINESE WILL LEAVE THE COUNTRY THIS YEAR ON BUSINESS OR PLEASURE THE IMPLICATIONS OF ALL THIS ARE ENORMOUS AS INDIVIDUAL CHINESE ADOPT AND APPRECIATE THE PLEASURES OF FASHION LEISURE AND TRAVEL THEY LEAVE EVER FURTHER BEHIND THE AUSTERE SOCIALISM OF COMMUNIST CHINA'S FOUNDING THE GOVERNMENT'S ATTEMPTS TO REASSERT CONTROL FOR EXAMPLE BY TRYING TO FORBID SATELLITE DISHES AND PAGERS GO IGNORED AS CHINESE FROM HAINAN TO HARBIN DEVELOP THEIR OWN MODELS OF DEVELOPMENT HERE INDEED IS THE FINAL IRONY OF THE COMMUNIST PARTY'S 44YEAR QUEST FOR AN IDEOLOGY PEOPLE CAN BELIEVE IN HAVING FINALLY FOUND AN IDEA DENGISM THAT DOES NOT PROVOKE IMMEDIATE SNEERS THE POWERS THAT BE ARE TRYING TO GIVE IT LIFE BUT CHINA'S PEOPLE ARE RESPONDING IN EFFECT WHO CARES INDEED THE ATTEMPT TO CREATE DENG XIAOPING THOUGHT HAS INSTEAD BROUGHT THE OPPOSITE INTO SHARP RELIEF AMONG CHINESE ANY FORM OF COMMUNIST IDEOLOGY IS DEAD CHINESE ARE MORE INTERESTED IN SEEING BANGKOK AND BUYING SPIFFY CLOTHES PERHAPS BY THE TIME THE INTERNATIONAL OLYMPIC COMMITTEE HAS TO CHOOSE A SITE FOR 2004 OR 2008 THE THOUGHT AND THEORY NOW RUNNING LIFE ON THE STREETS OF CHINA WILL ALSO BE RUNNING ITS GOVERNMENT 9311100072 931110 REVIEW & OUTLOOK EDITORIAL ASIDES SLOW BURN EVERYONE'S BREATHING EASIER IN SOUTHERN CALIFORNIA NOW EXCEPT THOSE WHO HAVE PLANS FOR PROPERTY WHERE THE GNATCATCHER AND CACTUS WREN ARE THOUGHT TO LIVE AFICIONADOS OF THE MODERN ENVIRONMENTAL MOVEMENT WILL RECALL THAT THOSE TWO ENDANGERED BIRD SPECIES HAVE DEVELOPERS BY THE TAIL IT NOW TURNS OUT THAT BECAUSE THE RECENT FIRES CLEARED A GOOD CHUNK OF THE BIRDS' REMAINING HABITAT BUILDERS HAVE LITTLE OR NO ROOM LEFT TO TAKE ADDITIONAL GROUND UNDER A PRESERVATION PACT HATCHED BY US INTERIOR SECRETARY BRUCE BABBITT DEVASTATION OR NO WE VERY MUCH DOUBT THERE'S MUCH CHANCE THAT COMMON SENSE WILL TIP TOWARD THE HUMANS' INTEREST HERE SO WITH UNEMPLOYMENT IN THE AREA APPROACHING 10 A LOT MORE CONSTRUCTION PEOPLE MAY SIMPLY HAVE TO TAKE FLIGHT 9311100071 931110 CORRECTION A NOV 3 LEISURE & ARTS ARTICLE ABOUT SEBASTIAO SALGADO INCORRECTLY STATED THAT HE WAS THE ONLY STILL PHOTOGRAPHER TO GET SHOTS OF THE ATTEMPTED ASSASSINATION OF RONALD REAGAN HE WAS IN FACT THE ONLY STILL PHOTOGRAPHER WITH COLOR FILM 9311100070 931110 BUSINESS BRIEF ROWAN COS COMPANY AGREES TO PURCHASE SUBSIDIARY OF GENERAL CABLE ROWAN COS HOUSTON SAID IT AGREED IN PRINCIPLE TO ACQUIRE THE MARATHON LETOURNEAU CO UNIT OF GENERAL CABLE CORP FOR ABOUT 50 MILLION ROWAN A CONTRACT DRILLING SERVICES PROVIDER SAID MARATHON LETOURNEAU BASED IN LONGVIEW TEXAS OPERATES A STEEL MILL PRODUCES HEAVY EQUIPMENT FOR THE MINING AND TIMBER INDUSTRIES AND BUILDS DRILLING RIGS GENERAL CABLE IS A MAKER OF ELECTRONIC AND TELECOMMUNICATIONS CABLE BASED IN HIGHLAND HEIGHTS KY ROWAN SAID IT EXPECTS THE TRANSACTION SUBJECT TO A DEFINITIVE AGREEMENT AND REGULATORY APPROVAL TO BE COMPLETED IN THE FIRST QUARTER OF 1994 9311100069 931110 ECONOMY PRODUCER PRICES DROPPED BY 02 DURING OCTOBER DECLINE FOLLOWED 02 RISE IN SEPTEMBER ADVANCE SO FAR IN '93 IS JUST 04 BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRICES AT THE WHOLESALE LEVEL FELL IN OCTOBER THE GOVERNMENT REPORTED SUGGESTING INFLATION IS STILL UNDER CONTROL DESPITE RECENT PICKUPS IN ECONOMIC ACTIVITY THE 02 DECLINE IN THE LABOR DEPARTMENT'S PRODUCER PRICE INDEX FOLLOWS A 02 RISE IN SEPTEMBER AND A 06 DROP IN AUGUST EXCLUDING FOOD AND ENERGY PRICES THE OCTOBER INDEX FELL 05 AFTER SHOWING NO CHANGE IN SEPTEMBER WHOLESALE PRICES ARE UP ONLY 04 SO FAR THIS YEAR COMPARED WITH A 12 RISE IN ALL OF 1992 WE STILL HAVE PRETTY TAME INFLATION SAID DONALD RATAJCZAK HEAD OF ECONOMIC FORECASTING AT GEORGIA STATE UNIVERSITY THE INFLATION REPORT IS PARTICULARLY WELCOME BECAUSE IT COMES AMID SIGNS THAT THE ECONOMY IS GAINING MOMENTUM THE HOUSING SECTOR APPEARS TO BE ON THE MEND AND FACTORIES SEEM TO BE GETTING STRONGER TOO ANALYSTS HAD WORRIED THAT THE STRONGER ECONOMY WOULD BE ACCOMPANIED BY A BURST OF INFLATION JOEL POPKIN HEAD OF AN ECONOMIC CONSULTING COMPANY IN WASHINGTON BEARING HIS NAME SAID THE FACT THAT INFLATION IS SO WELLBEHAVED INDICATES JUST HOW SLUGGISH WE WERE BEFORE THE INCREASE IN ACTIVITY STILL HASN'T BEEN ENOUGH TO BOOST PRICES IN ADDITION TO A 05 DROP IN FOOD PRICES THERE WAS A 39 PLUNGE IN CAR PRICES WHICH WAS MAINLY THE RESULT OF SEASONAL ADJUSTMENTS INVOLVING THE START OF THE NEW MODEL YEAR EVEN OUTSIDE OF AUTOS AND FOOD HOWEVER PRICES WERE SUBDUED CAPITALEQUIPMENT PRICES FELL 04 WHICH ANALYSTS ATTRIBUTED TO PRICING COMPETITION AMONG COMPUTER MAKERS THERE WAS SOFTNESS IN NEWSPAPERS MAGAZINES WOMEN'S CLOTHING AND HOUSEHOLD FLATWARE HOWEVER THE HOUSING BOOMLET MAY BE HELPING TO FIRM SOME GOODS TEXTILE HOME FURNISHINGS FLOOR COVERINGS HOME ELECTRONICS AND GLASSWARE WERE UP DURING OCTOBER GASOLINE PRICES JUMPED 63 DURING OCTOBER AFTER FALLING IN SEPTEMBER ANALYSTS SAID THE RISE IN PRICES PROBABLY REFLECTS THE COST OF A CHANGE OF REFINERY PROCEDURES TO MEET ENVIRONMENTAL REQUIREMENTS THE BOOST IN THE FEDERAL GASOLINE TAX THAT TOOK EFFECT OCT 1 SHOULD SHOW UP IN TODAY'S LABOR DEPARTMENT REPORT ON CONSUMER PRICES OVERALL ANALYSTS EXPECT THE REPORT TO SHOW THAT PRICES ARE SUBDUED AT THE CONSUMER LEVEL ALTHOUGH NOT AS RESTRAINED AS THE PRODUCER PRICE INDEX ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE LABOR DEPARTMENT'S PRODUCER PRICE INDEXES 1982=100 FOR OCTOBER BEFORE SEASONAL ADJUSTMENT AND THE PERCENTAGE CHANGES FROM OCTOBER 1992 9311100068 931110 INTERNATIONAL BRIEF VEBA AG CHEMICAL CONCERN'S PROFIT IN NINE MONTHS FELL 14 VEBA AG CITING CONTINUING DIFFICULTIES IN ITS CHEMICAL AND OIL OPERATIONS REPORTED THAT PROFIT FOR THE FIRST NINE MONTHS FELL 14 FROM A YEAR EARLIER TO 453 MILLION MARKS 269 MILLION THE GERMAN CONCERN POSTED PROFIT OF 527 MILLION MARKS FOR THE FIRST NINE MONTHS OF 1992 ANALYSTS SAID THEY WEREN'T SURPRISED BY THE EARNINGS FIGURES AND ADDED THAT THE DATA WEREN'T OUT OF LINE WITH THE COMPANY'S FIRSTHALF EARNINGS WHICH WERE DOWN 13 VEBA PREDICTED THAT ITS FULLYEAR EARNINGS WOULD ALSO BE DOWN ABOUT 14 IN 1992 IT POSTED PROFIT OF 104 BILLION MARKS 9311100067 931110 BUSINESS BRIEF TCS ENTERPRISES INC KEY HOLDER MAY SELL SHARES TO SANTA ANITA PRODUCE INC TCS ENTERPRISES INC SAID ITS PRESIDENT AND CONTROLLING SHAREHOLDER MARIO A ROSAS SIGNED A NONBINDING LETTER OF INTENT WITH SANTA ANITA PRODUCE INC TO SELL HIS TCS COMMON SHARES AND STOCK WARRANTS THE COMPANY IN SAN DIEGO SAID IN A STATEMENT THAT THE SALE IF COMPLETED MAY RESULT IN A CHANGE OF CONTROL OF TCS BUT THAT THE POTENTIAL CHANGE WOULDN'T AFFECT ITS BUSINESSES SANTA ANITA PRODUCE IN NOGALES ARIZ CURRENTLY HOLDS 65 OF TCS'S SHARES OUTSTANDING AND IS CONTROLLED BY FAMILY MEMBERS OF GRUPO LOMELI IN GUADALAJARA MEXICO HECTOR LOMELI VILLALOBOS A 57 SHAREHOLDER IN TCS IS ALSO A PRINCIPAL IN GRUPO LOMELI MR ROSAS WASN'T AVAILABLE FOR COMMENT AS OF AUGUST MR ROSAS OWNED 67 OF TCS STOCK 9311100065 931110 BY GETTING FOLKS TO STRING ALONG HE WAS ABLE TO ROLL UP A RECORD BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL AS A COUNTRYWESTERN MECCA BRANSON MO HAS HEARD MANY TALES BUT TODAY IT WILL LAY CLAIM TO THE ULTIMATE YARN AND FOR GOOD REASON BARRING ROADBLOCKS BRANSON WILL TAKE DELIVERY OF THE WORLD'S LARGEST BALL OF TWINE A 10FOOTTALL 6 1/2TON BEHEMOTH IT'S ARRIVING ON A FLATBED TRUCK FOLLOWING A THREEDAY DRIVE FROM ITS BIRTHPLACE IN NORTH TEXAS BRANSON IS HONORING THE NYLON GOLIATH WITH A SPECIAL MAYOR'S PROCLAMATION DECLARING TODAY BALL OF TWINE DAY I CALLED MY FRIEND ABOUT THIS AND SHE SAID BRING YOUR CATS SAYS A SPOKESWOMAN FOR THE BRANSONLAKES AREA CHAMBER OF COMMERCE THIS STORY STARTS WITH JC PAYNE A 72YEAROLD RETIRED BRICKLAYER WHO LIVES ON A RANCH IN COOKE COUNTY TEXAS 70 MILES NORTH OF DALLAS FOUR YEARS AGO HE BEGAN SAVING THE STRING HE USED TO BALE HAY THAT MAY SOUND ODD BUT HE HAS ALSO BEEN COLLECTING BARBED WIRE SINCE 1947 MR PAYNE THEN LEARNED THAT THE GUINNESS BOOK OF RECORDS CREDITS A MINNESOTA MAN WITH ASSEMBLING THE WORLD'S LARGEST BALL OF STRING 40 FEET IN CIRCUMFERENCE MR PAYNE SET OUT TO UNRAVEL THE RECORD HE AND HIS WIFE ELSIE RUTH TRAVELED THROUGH NORTH TEXAS ASKING CATTLEMEN AND DAIRY FARMERS FOR THEIR USED TWINE HE STRUCK A CORD ER CHORD AND NEIGHBORS SOON BEGAN DELIVERING THE STUFF TO HIS HOME SOME PEOPLE SENT HIM STRING IN THE MAIL TYING THE TWINE WITH SQUARE KNOTS HE BUILT UP THE MULTICOLORED SPHERE IN HIS 12FOOTHIGH BARN UNTIL IT GOT TOO BIG OUTDOORS MR PAYNE'S TWO SONS HELPED HIM ROTATE THE MASS ON A TURNTABLE I USED TO DO IT MYSELF BUT I HURT MY ARM AFTER IT GOT TO WEIGH A TON HE EXPLAINS MR PAYNE COMPLETED THE BALL EARLIER THIS YEAR WITH A CIRCUMFERENCE OF 42 FEET IT WILL BE RECOGNIZED AS THE LARGEST OF ITS KIND IN THE GUINNESS BOOK OF RECORDS MR PAYNE AGREED TO SELL HIS CREATION TO RIPLEY ENTERTAINMENT INC ORLANDO FLA FOR BETWEEN 20000 AND 50000 THE TWINE WILL BE THE CENTERPIECE OF A RIPLEY'S BELIEVE IT OR NOT MUSEUM BEING BUILT IN BRANSON AND DUE TO OPEN NEXT YEAR I CONSIDER THIS THE HOLY GRAIL GUSHES EDWARD MEYER VICE PRESIDENT EXHIBITS FOR RIPLEY FOR HIS PART MR PAYNE IS SADDENED NOT THAT HE HAS LOST HIS GLOBE BUT THAT THE HUNT IS OVER THE MAIN THING WAS THE PURSUIT HE SAYS THAT'S WHAT I LOOKED FORWARD TO THE PURSUIT OF THE STRING 9311100064 931110 INTERNATIONAL BRIEF SAINTGOBAIN SA FRENCH CONCERN SAYS SALES FELL 56 FOR NINE MONTHS FRENCH GLASS AND CONSTRUCTIONMATERIALS GROUP SAINTGOBAIN SA SAID SALES FOR THE FIRST NINE MONTHS OF THE YEAR FELL 56 FROM A YEAR EARLIER TO 533 BILLION FRANCS 909 BILLION THE GROUP SAID THAT ON THE BASIS OF UNCHANGED GROUP STRUCTURE AND EXCHANGE RATES SALES WERE DOWN 57 FOR THE FIRST HALF SAINTGOBAIN HAD REPORTED A SALES DECLINE OF 78 SAINTGOBAIN'S NORTH AMERICAN CONSTRUCTIONMATERIALS OPERATIONS HAVE MADE A SIGNIFICANT RECOVERY BUT THE COMPANY'S EUROPEAN ACTIVITIES REMAIN DEPRESSED AS A RESULT OF THE SLUMP IN THE AUTOMOBILE AND CONSTRUCTION SECTORS THE GROUP'S US OPERATIONS IN PARTICULAR WILL GIVE STRONG SUPPORT TO THE REST OF THE GROUP ANALYSTS SAID SAINTGOBAIN OFFICIALS SAID THE CONSTRUCTION MATERIALS IN THE NINE MONTHS WERE VERY STRONG GIVEN THE CURRENTLY DEPRESSED ECONOMIC CLIMATE IN MAIN MARKETS MORE THAN 90 OF SAINTGOBAIN'S CONSTRUCTIONMATERIALS ACTIVITY IS IN NORTH AND LATIN AMERICA 9311100063 931110 FUTURE FILES UNDER CHAPTER 11 TO SEEK BANKRUPTCY SHIELD BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS FUTURE COMMUNICATIONS INC THE EMBATTLED CABLE TELEVISION AND PROGRAMMING COMPANY FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE ACCORDING TO THE BANKRUPTCY PETITION FILED IN A FEDERAL BANKRUPTCY COURT IN DALLAS FUTURE OWES AN ESTIMATED 29 MILLION TO 33 CREDITORS INCLUDING MERRILL LYNCH & CO THE CITY OF DALLAS AIRBORNE EXPRESS THE TRADE NAME UNDER WHICH AIRBORNE FREIGHT CORP OPERATES SEVERAL OF ITS ATTORNEYS AND BROKER RAFI M KHAN THE COMPANY'S BIGGEST SUPPORTER IN THE INVESTMENT COMMUNITY THE COMPANY LISTED ASSETS OF 29 MILLION IN THE PETITION H DEWAYNE HALE A BANKRUPTCY ATTORNEY FOR THE COMPANY SAID THE FILING IS A RESULT OF A COMBINATION OF ALL THE THINGS GOING ON LAST MONTH THE SECURITIES AND EXCHANGE COMMISSION SUED THE COMPANY AND ITS THEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SERGIO BOSCO ACCUSING THEM OF A SCHEME TO FRAUDULENTLY INFLATE THE COMPANY'S STOCK PRICE AT LEAST FIVE SHAREHOLDER GROUPS HAVE SUED FUTURE AND ITS OFFICERS TOO LEVELING SIMILAR CHARGES THE COMPANY AND ITS AFFILIATED COMPANIES HAVE ALSO BEEN THE SUBJECTS OF SEVERAL BREACHOFCONTRACT SUITS INCLUDING ONE FILED BY COMEDIAN MILTON BERLE WHO SERVED AS A CELEBRITY SPOKESMAN FOR FUTURE'S MSTV NETWORK DESPITE THE COMPANY'S PROBLEMS MR HALE WAS UPBEAT NOTING THAT PENDING LITIGATION WOULD EVENTUALLY BE RESOLVED IN THE REORGANIZATION AND THAT THE FILING WON'T NECESSARILY WIPE OUT SHAREHOLDERS' EQUITY THIS COMPANY INTENDS TO REORGANIZE AND PRESERVE VALUE FOR THE SHAREHOLDERS MR HALE SAID HE ADDED THAT FUTURE'S CURRENT MANAGEMENT PLANS TO REMAIN IN PLACE DURING THE REORGANIZATION PROCESS ONE SHAREHOLDER GROUP HOWEVER HAS SAID IT IS SEEKING TO REPLACE MANAGEMENT AND IS CURRENTLY WAGING A COURT BATTLE IN STATE COURT IN NEW JERSEY TO FORCE THE COMPANY TO HOLD AN ANNUAL MEETING THE NATIONAL ASSOCIATION OF SECURITIES DEALERS DELISTED THE COMPANY'S STOCK LAST MONTH CITING A RANGE OF CORPORATE GOVERNANCE AND REPORTING VIOLATIONS 9311100062 931110 BUSINESS BRIEF TRANS FINANCIAL BANCORP INC STOCK SWAP PLANNED TO BUY BANK COMPANY IN KENTUCKY TRANS FINANCIAL BANCORP INC BOWLING GREEN KY SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE PUBLICLY HELD KENTUCKY COMMUNITY BANCORP INC OF MAYSVILLE KY IN A STOCK SWAP KENTUCKY COMMUNITY A THREEBANK HOLDING COMPANY HAS TOTAL ASSETS OF 171 MILLION THE COMPANY SAID UNDER THE AGREEMENT KENTUCKY COMMUNITY SHAREHOLDERS WILL RECEIVE 53 SHARES OF TRANS FINANCIAL COMMON STOCK FOR EACH SHARE OF KENTUCKY COMMUNITY STOCK TRANS FINANCIAL VALUED THE ACQUISITION AT ABOUT 22 MILLION BASED ON MONDAY'S CLOSING PRICE OF THE COMPANY'S STOCK OF 16 A SHARE AND ABOUT 1375000 NEWLY ISSUED TRANS FINANCIAL COMMON SHARES IT EXPECTS THE TRANSACTION TO BE RECOGNIZED AS A TAXFREE POOLING OF INTEREST THE COMPANY SAID IT ANTICIPATES MERGING KENTUCKY COMMUNITY INTO ITS TRANS FINANCIAL BANK NA UPON CLOSING THE DEAL WHICH IT EXPECTS IN MIDFEBRUARY 9311100061 931110 BUSINESS BRIEF PARKER HANNIFIN CORP GROUPE SCHNEIDER SUBSIDIARY BOUGHT FOR UNDISCLOSED SUM PARKER HANNIFIN CORP CLEVELAND SAID IT ACQUIRED THE ELECTROPNEUMATIC DIVISION OF TELEMECANIQUE A UNIT OF GROUPE SCHNEIDER TERMS WEREN'T DISCLOSED THE COMPANY SAID THE ELECTROPNEUMATIC DIVISION BASED IN EVREUX FRANCE MANUFACTURES ACTUATORS VALVES AND AIRPREPARATION PARTS FOR INDUSTRIAL PNEUMATIC APPLICATIONS THE DIVISION HAD 1992 SALES OF ABOUT 40 MILLION PARKER HANNIFIN SAID IT HAS 191 EMPLOYEES PARKER HANNIFIN SAID THE SALE OF THE UNIT IS PART OF GROUPE SCHNEIDER'S STRATEGY TO DIVEST ITSELF OF NONCORE BUSINESSES THE DIVISION WILL BE MERGED WITH PARKER HANNIFIN'S MOTION & CONTROL GROUP WHICH MAKES HYDRAULIC PNEUMATIC AND ELECTROMECHANICAL PARTS AND SYSTEMS PARKER HANNIFIN IS A PRODUCER AND SUPPLIER OF MOTIONCONTROL PARTS AND SYSTEMS FOR THE INDUSTRIAL AUTOMOTIVE AND AEROSPACE MARKETS 9311100060 931110 CONTEMPORARYART MARKET COMES ALIVE IN 159 MILLION AUCTION BY CHRISTIE'S BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE MARKET FOR CONTEMPORARY ART SNAPPED AWAKE LAST NIGHT AT A 159 MILLION SALE BY CHRISTIE'S INTERNATIONAL PLC THE SALE THE FIRST OF A WEEKLONG SERIES OF CONTEMPORARY ART AUCTIONS IN NEW YORK APPEARED TO CLOSE THE BOOK ON A THREEYEAR RECESSION DURING WHICH SALES OF PRICY POSTWAR WORKS WERE RARE AND HARDWON NOT EVERYTHING SOLD OR SOLD WELL LAST NIGHT AT CHRISTIE'S BUT COLLECTORS AND DEALERS SAID NOT EVERYTHING DESERVED TO YET THE AUCTION HOUSE MOVED ENOUGH ART OF WIDELY VARYING QUALITY AND PRICE TO PUT THE CONTEMPORARYART WORLD BACK IN BUSINESS THE TOTAL FOR THE SALE INCLUDING THE COMMISSION PAID TO CHRISTIE'S WAS 159 MILLION THE SALE HAD BEEN EXPECTED TO RAISE ABOUT 153 MILLION TO 202 MILLION LAST NIGHT WAS THE FIRST TIME SINCE 1989 THAT THE AUCTION HOUSE HAS MET ITS CONTEMPORARYART SALES GOALS OF THE 62 ARTWORKS ON THE AUCTION BLOCK 19 FAILED TO SELL A FAR CRY FROM THE 30 TO 45 FAILURE RATE COMMON IN RECENT YEARS MOST OF THE BUYING CAME FROM AMERICANS ALL PRICES INCLUDE CHRISTIE'S COMMISSION WHICH IS 15 ON THE FIRST 50000 AND 10 ON THE REMAINDER CHRISTOPHER BURGE PRESIDENT OF CHRISTIE'S USA THE US WING OF THE COMPANY DUBBED THE SALE EXTREMELY SUCCESSFUL PEOPLE WANTED TO SPEND MONEY THERE WAS TREMENDOUSLY HEALTHY SUPPORT FOR THE MARKET ELI BROAD CHAIRMAN OF FINANCIALSERVICES FIRM BROAD INC OF LOS ANGELES SAID PEOPLE DIDN'T APPEAR TO BE AS CAUTIOUS THIS TIME QUALITY THINGS BROUGHT GOOD PRICES MR BROAD BID ON A RICHARD ARTSCHWAGER PAINTING TRAIN WRECK BUT DROPPED OUT WHEN BIDDING ROSE TO ALMOST TRIPLE THE EXPECTED PRICE IT SOLD FOR 222500 CHRISTIE'S SALE WAS PACKED WITH JAZZY WITTY COLORFUL AND UNTRADITIONAL WORKS SCULPTURES OF CRUSHED CAR PARTS A PORTRAIT ON A CANVAS OF CRACKED PLATES A GIANT ENAMEL SCULPTURE OF A BURNING CIGARETTE AND A GAPING PORCELAIN SINK WERE ALL UP FOR BID AND ALL SOLD MOST WORKS WERE PRICED AT ABOUT 200000 TO 500000 THE MOST KEENLY DESIRED WORK WAS ARSHILE GORKY'S YEAR AFTER YEAR THE ARTIST WITH HIS BRILLIANT VIVID WASHES OF PAINT BREAKING OUT OF BLACK LINES WAS A BRIDGE BETWEEN US ABSTRACT EXPRESSIONISTS AND EUROPEAN CUBISTS IT WAS EXPECTED TO BRING ABOUT 3 MILLION TO 4 MILLION AND SOLD FOR 39 MILLION A RECORD FOR THE ARTIST BUT BIDDERS WEREN'T ACTING AS THOUGH THE 1980S ART BOOM HAD NEVER ENDED SOME KEY WORKS WERE BYPASSED AS SIMPLY TOO EXPENSIVE CY TWOMBLY'S ABSTRACT EXPRESSIONIST PAINTING NEW YORK CITY DIDN'T SELL ON A GIANT CANVAS PAINTED TO LOOK LIKE A BLACKBOARD THE ARTIST DREW PASSIONATE CONCENTRIC CIRCLES IN WHITE CHALK THE PIECE WAS EXPECTED TO BRING 18 MILLION TO 22 MILLION CHRISTIE'S ADMITTED THAT ESTIMATE WAS NO BARGAIN BUT ARGUED THAT THE PIECE WAS ONE OF HIS BETTER WORKS BIDDING STOPPED AT 15 MILLION MR BURGE SAID A PRIVATE SALE IS LIKELY TO BE NEGOTIATED TODAY THE ACTION CONTINUES THIS EVENING AT SOTHEBY'S HOLDINGS INC'S NEW YORK SALES ROOM 9311100059 931110 BUSINESS BRIEF MCCAW CELLULAR COMMUNICATIONS INC NETWORK ADDS TWO CARRIERS IN LOS ANGELES AND HOUSTON MCCAW CELLULAR COMMUNICATIONS INC SAID IT ADDED HOUSTON AND LOS ANGELES METROPOLITANAREA CELLULARPHONE CARRIERS INTO ITS NORTH AMERICAN CELLULAR NETWORK SWELLING THE NUMBER OF CUSTOMERS SERVED BY THE NETWORK TO 35 MILLION MCCAW SAID THE ADDITION OF HOUSTON CELLULAR TELEPHONE CO AND LOS ANGELES CELLULAR TELEPHONE CO BRINGS TO 35 THE NUMBER OF CELLULAR CARRIERS PARTICIPATING IN THE NETWORK BOTH COMPANIES ARE JOINT VENTURES OF ATLANTABASED BELLSOUTH CORP AND LIN BROADCASTING CO OF SEATTLE WHICH IS 52 OWNED BY MCCAW THE SERVICE NOW IS AVAILABLE IN 30 STATES AND 500 CITIES SAID MCCAW BASED IN KIRKLAND WASH THE NORTH AMERICAN CELLULAR NETWORK INTRODUCED IN OCTOBER 1991 ALLOWS CELLULARPHONE USERS TO BE REACHED ANYWHERE WITHIN THE NETWORK BY DIALING THEIR REGULAR PHONE NUMBER 9311100058 931110 LEISURE & ARTS PAINTING THE TRUTH OF WHAT HE SAW BY ROGER KIMBALL LONDON THE UNITED STATES HAS HAD LITTLE PROBLEM EXPORTING MCDONALD'S HAMBURGERS MTV AND MADONNA IT HAS NOT ALWAYS DONE SO WELL WITH ITS BEST ARTISTS CONSIDER THOMAS EAKINS BORN IN PHILADELPHIA IN 1844 EAKINS IS ONE OF AMERICA'S FEW INDISPUTABLY GREAT PAINTERS HIS FRIEND WALT WHITMAN INSISTED THAT HE WAS NOT SO MUCH A PAINTER AS A FORCE HIGH PRAISE FROM THE COSMIC BARD TODAY MANY CRITICS CONCLUDE THAT HIS LATER PORTRAITS SEARINGLY FRANK YET ALSO GENTLE RESPECTFUL AFFIRMATIVE HAVE EARNED HIM A PLACE ALONGSIDE SUCH 19THCENTURY MASTERS OF PSYCHOLOGICAL REALISM AS COURBET MANET AND DEGAS EAKINS DIED IN 1916 BUT TO DATE ONLY ONE OF HIS WORKS HAS FOUND ITS WAY INTO A FOREIGN COLLECTION A PORTRAIT CALLED CLARA IS IN THE MUSEE D'ORSAY IN PARIS IT IS EVEN MORE SURPRISING TO LEARN THAT THOMAS EAKINS AND THE HEART OF AMERICAN LIFE ON VIEW HERE AT THE NATIONAL PORTRAIT GALLERY THROUGH JAN 23 IS THE FIRST EXHIBITION DEVOTED TO HIS WORK OUTSIDE THE US DESPITE THE OMISSION OF SOME IMPORTANT PAINTINGS THE TWO MOST NOTABLE BEING THE SWIMMING HOLE C 1883 AND PORTRAIT OF DR GROSS THE GROSS CLINIC 1875 THE 59 WORKS IN THIS SHOW PROVIDE A GOOD OVERVIEW OF EAKINS'S DEVELOPMENT THE EXHIBITION OPENS WITH SOME STUDENT WORK A STRIKINGLY ACCOMPLISHED PERSPECTIVE DRAWING OF A LATHE THAT EAKINS DID IN HIS LAST YEAR AT PHILADELPHIA'S FAMED CENTRAL HIGH SCHOOL AND A FEW PAINSTAKING ANATOMICAL STUDIES IT CONCLUDES WITH A HANDFUL OF EXPERIMENTS IN PHOTOGRAPHIC PORTRAITURE IN LATER YEARS EAKINS DID PIONEERING RESEARCH IN SERIAL PHOTOGRAPHY BRACKETING THE MAIN BODY OF THE EXHIBITION THESE WORKS USEFULLY REMIND US OF EAKINS'S LIFELONG DEVOTION TO ANATOMICAL SCIENCE AND THE LAWS OF OPTICAL REPRESENTATION IF IT WAS INSIGHT AND INTUITION THAT MADE EAKINS A GREAT ARTIST IT WAS A PASSION FOR EXACTNESS AND TECHNICAL PRECISION THAT ALLOWED HIM TO REALIZE HIS INTUITIONS ON CANVAS AND IN THE DARKROOM IT IS NO ACCIDENT THAT SOME OF HIS MOST FAMOUS PICTURES ARE OF MEN OF SCIENCE ESPECIALLY SURGEONS LIKE ALL GENUINELY ORIGINAL ARTISTS EAKINS WAS DEEPLY TRADITIONAL THAT IS TO SAY HIS ORIGINALITY ISSUED FROM HIS FERTILE ASSIMILATION OF CERTAIN ARTISTIC CONVENTIONS AND TECHNIQUES IN 1866 AFTER STUDYING BRIEFLY AT THE PENNSYLVANIA ACADEMY OF FINE ARTS EAKINS DEPARTED FOR PARIS WHERE HE STUDIED WITH JEANLEON GEROME AT THE ECOLE DES BEAUX ARTS EXCURSIONS TO MADRID AND SEVILLE BROUGHT HIM INTO CONTACT WITH THE WORK OF VELAZQUEZ AND RIBERA THE TWO OLD MASTERS WHOSE TENEBRIST PALETTES AND UNFLINCHING EXPLORATION OF CHARACTER MOST DECISIVELY INFLUENCED THE AESTHETIC TEMPERATURE OF HIS WORK BECAUSE EUROPE WAS THE INESCAPABLE SOURCE OF ARTISTIC TRADITION IN THE 1860S EAKINS APPRENTICED IN PARIS BUT UNLIKE SUCH POPULAR SOCIETY PORTRAITISTS AS JOHN SINGER SARGENT WHO BECAME A PROFESSIONAL EXPATRIATE IN LONDON EAKINS FOUND HIS VOCATION AS A DISTINCTIVELY AMERICAN PAINTER IF AMERICA IS TO PRODUCE GREAT PAINTERS HE WROTE LATE IN LIFE YOUNG ARTISTS SHOULD REMAIN IN AMERICA TO PEER DEEPER INTO THE HEART OF AMERICAN LIFE IN 1870 EAKINS RETURNED TO PHILADELPHIA NEVER TO SET FOOT IN EUROPE AGAIN HE DID THEN INDEED SET TO PEERING DEEPER INTO THE HEART AND THEREBY DISTINGUISHED HIMSELF PROFOUNDLY FROM PAINTERS LIKE SARGENT AND WILLIAM MERRITT CHASE WHOSE SLICK TECHNIQUE AND TENDENCY TO FLATTER THEIR CLIENTS MADE THEM RICH EAKINS NEVER FLATTERED HIS SITTERS HE PREFERRED TO EXPLORE THE TRUTH OF WHAT HE SAW WHICH IS NOT TO SAY THAT HE DID NOT DISCOVER BEAUTY OR DIGNITY IN HIS CONTEMPLATION SOME OF HIS PORTRAITS MAUD COOK 1895 FOR EXAMPLE ARE POSITIVELY RAVISHING NONE LACKS DIGNITY YET THE CRITIC WHO OBSERVED THAT EAKINS WAS AN ANNIHILATOR OF VANITY WAS RIGHT EVEN WHEN HE PRESERVES A FACADE EAKINS GLIMPSES THE HUMAN MELANCHOLY BEHIND IT MANY CLIENTS COMPLAINED THAT HE MADE THEM LOOK OLDER THAN THEY WERE IN FACT EAKINS PAINTED VERY SLOWLY AND TENDED NOT TO TALK MUCH WHILE PAINTING THIS OFTEN LULLED HIS SITTERS INTO A MEDITATIVE REPOSE BEREFT OF THE REJUVENATING SPARKLE THAT FULL ATTENTION BRINGS SOME OF HIS MOST PENETRATING PORTRAITS OF HIS WIFE IN 1900 OF THE SINGER EDITH MAHON 1904 OF HIS FRIEND AMELIA VAN BUREN C 1891 DISCREETLY EXPLOIT TOKENS OF AGING ALL THIS MADE EAKINS A SPECIALTY TASTE ALTHOUGH RESPECTED BY OTHER ARTISTS AND A HANDFUL OF CRITICS HE NEVER HAD A WIDE FOLLOWING CONSEQUENTLY MANY OF HIS PORTRAITS ARE OF FRIENDS FAMILY OR STUDENTS THERE WAS ALSO SOME MILD SCANDAL IN 1885 FOR EXAMPLE WHEN HE WAS DIRECTOR OF THE PENNSYLVANIA ACADEMY OF FINE ARTS EAKINS SOUGHT TO ILLUSTRATE A POINT OF ANATOMY BY REMOVING A LOIN CLOTH FROM A MALE MODEL IN A MIXED DRAWING CLASS HE WAS FIRED NOR DID HIS UNSENTIMENTAL TREATMENT OF CERTAIN SUBJECTS RECOMMEND HIM TO ESTABLISHED TASTE THE SURGEON'S BLOODSPATTERED HAND IN THE GROSS CLINIC LED THE SQUEAMISH JURY TO REJECT IT FOR THE CENTENNIAL EXHIBITION OF 1876 IT WAS FINALLY SOLD TO A MEDICAL SCHOOL FOR THE INSULTING SUM OF 200 IN 1894 AN EMBITTERED EAKINS WROTE THAT MY HONORS ARE MISUNDERSTANDING PERSECUTION AND NEGLECT ENHANCED BECAUSE UNSOUGHT IT WAS NOT UNTIL 1902 WHEN HE WAS IN HIS MID50S THAT HE WAS FINALLY INVITED TO JOIN THE NATIONAL ACADEMY OF DESIGN IN RESPONSE HE PAINTED A BUSTLENGTH SELFPORTRAIT AS A DIPLOMA PICTURE BOTH HIS PREPARATORY OIL SKETCH AND THE FINISHED PORTRAIT ARE INCLUDED IN THIS EXHIBITION THE SKETCH WHICH EAKINS COMPLETED IN A SINGLE SESSION SHOWS HIM HEADON HALF SWALLOWED BY SHADOWS EVERYTHING BELOW THE NECK IS LOST IN A SCUMBLED DARKNESS THE ARTIST'S FACE IS FULL OF WEARY SADNESS RESIGNED BUT UNCONQUERED IN THE FINISHED PORTRAIT EAKINS BROUGHT HIMSELF FORWARD INTO A WARM INVIGORATING LIGHT AND ACCOUTERED HIMSELF IN COAT AND TIE HIS HEAD IS COCKED TO THE RIGHT HIS GAZE IS EVEN SURE ASSESSING THE SADNESS IS STILL THERE BUT SO IS A DIGNIFIED HUMANITY AS THIS FINE EXHIBITION DEMONSTRATES EAKINS'S PORTRAITS ARE THE REAL THING A PERMANENT CULTURAL POSSESSION AND SUSTAINING INSPIRATION 9311100057 931110 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH PATENTVIOLATION VERDICT IS OVERTURNED IN US COURT AMERICAN TELEPHONE & TELEGRAPH CO SAID THE US COURT OF APPEALS WASHINGTON IN A RULING FRIDAY OVERTURNED A 346 MILLION JURY VERDICT FOR PATENT INFRINGEMENT AGAINST THE COMPANY IN MARCH 1992 A FEDERAL COURT IN MIDLAND TEXAS RULED THAT AT&T'S 5ESS DIGITAL SWITCH INFRINGED ON A TIME SPACE TIME TST SWITCH PATENTED BY COLLINS LICENSING LP BASED IN DALLAS AT&T'S SWITCH IS USED WIDELY BY THE REGIONAL BELL COMPANIES AND OVERSEAS TELEPHONE COMPANIES AS THE PRIMARY EXCHANGE FOR ROUTING PHONE AND DATA TRAFFIC AT&T SAID THE APPEALS COURT RULED THAT THE COLLINS PATENT CLAIM UNDER DISPUTE WAS INVALID COLLINS ORIGINALLY SOUGHT 400 MILLION TO 800 MILLION PLUS TREBLE DAMAGES WHEN IT FILED THE INFRINGEMENT SUIT AGAINST AT&T IN 1990 ROLF STADHEIM AN ATTORNEY FOR COLLINS DESCRIBED THE APPEALSCOURT RULING AS UNSUPPORTABLE AND UNCONSTITUTIONAL AND SAID COLLINS PLANS TO APPEAL 9311100056 931110 BUSINESS BRIEF ZAPATA CORP ENERGY INDUSTRIES PURCHASE IS VALUED AT 909 MILLION ZAPATA CORP SAID IT COMPLETED THE ACQUISITION OF ENERGY INDUSTRIES INC IN A TRANSACTION VALUED AT 909 MILLION ZAPATA IS AN INTERNATIONAL NATURAL GAS SERVICES COMPANY THAT ALSO PRODUCES NATURAL GAS AND MARINE PROTEIN PRODUCTS ENERGY INDUSTRIES IN CORPUS CHRISTI TEXAS IS AN INTERNATIONAL SUPPLIER OF NATURALGAS COMPRESSION EQUIPMENT AND SERVICES IN 1992 THE COMPANY HAD REVENUE OF 547 MILLION ENERGY INDUSTRIES HAS DOMESTIC FACILITIES IN TEXAS ARKANSAS LOUISIANA NEW MEXICO AND OKLAHOMA ZAPATA CHAIRMAN AND CHIEF EXECUTIVE OFFICER RC LASSITER SAID THE COMPANY WILL CONTINUE TO SEEK ACQUISITION OPPORTUNITIES 9311100055 931110 MARKETING BRIEF NOTED MAGAZINES DAVID FERM WAS NAMED PUBLISHER OF MCGRAWHILL INC'S BUSINESS WEEK MAGAZINE HE SUCCEEDS JOHN W PATTEN 63 WHO REMAINS PRESIDENT OF MCGRAWHILL'S BUSINESS WEEK GROUP MR FERM 45 MOST RECENTLY WAS PRESIDENT AND PUBLISHER OF GOLF DIGEST OWNED BY NEW YORK TIMES CO AND PRESIDENT OF ITS RELATED BUSINESS GOLF CO 9311100054 931110 BUSINESS BRIEF UNITED GAMING INC LAS VEGAS CONCERN ACQUIRES 43 STAKE IN CAPITAL GAMING UNITED GAMING INC AGREED TO MAKE AN EQUITY INVESTMENT OF 20 MILLION AND PROVIDE A 10 MILLION BRIDGE LOAN TO CAPITAL GAMING INTERNATIONAL INC OF ATLANTIC CITY NJ IN RETURN FOR A 43 STAKE IN THE COMPANY UNDER THE AGREEMENT WHICH TIES THE INFUSION OF FUNDS TO CAPITAL GAMING'S COMPLETION OF A 125 MILLION FINANCING PACKAGE LAS VEGASBASED UNITED GAMING WILL RECEIVE AS MANY AS 115 MILLION SHARES AND WARRANTS OF CAPITAL GAMING UNITED GAMING'S PRESIDENT AND CHIEF OPERATING OFFICER SHANNON L BYBEE WILL BECOME CHAIRMAN OF CAPITAL GAMING SUCCEEDING JACK DAVIS WHO IS RETIRING MR BYBEE WILL RETAIN HIS POSITIONS AT UNITED GAMING IN ADDITION UNITED GAMING WILL BE ABLE FOR AT LEAST TWO YEARS TO APPOINT A MAJORITY OF CAPITAL GAMING'S BOARD EDWARD TRACY WILL REMAIN AS CAPITAL GAMING'S PRESIDENT 9311100053 931110 BUSINESS BRIEF ANGELES PARTICIPATING MORTGAGE MOST OF CASH ASSETS WILL BE DISTRIBUTED TO SHAREHOLDERS ANGELES PARTICIPATING MORTGAGE TRUST ANNOUNCED IT WILL DISTRIBUTE TO SHAREHOLDERS ABOUT 373 MILLION OF ITS 40 MILLION OF CASH ASSETS WITH NO FURTHER CASH DISTRIBUTIONS EXPECTED THROUGH THE END OF 1994 THE LOS ANGELES TRUST RECENTLY ANNOUNCED RECEIVING 261 MILLION FROM THE SALE OF ITS MORTGAGE PORTFOLIO IT SAID IT WILL RETAIN ABOUT 25 MILLION IN CASH AFTER THE DISTRIBUTION AS ITS ONLY ASSETS AND INDICATED THERE MAY BE NO FURTHER CASH DISTRIBUTIONS IT ALSO SAID IT WILL CONTINUE TO EXPLORE STRATEGIC ALTERNATIVES WITH THIRD PARTIES WHO MIGHT HAVE AN INTEREST IN ACQUIRING A STAKE IN THE REMAINING TRUST THE AMERICAN STOCK EXCHANGE CURRENTLY IS EVALUATING WHETHER TO CONTINUE LISTING THE TRUST AND THE TRUST SAID THERE CAN BE NO ASSURANCE THAT THE LISTING WILL BE CONTINUED THE TRUST ANNOUNCED A DISTRIBUTION OF 1450 FOR EACH CLASS A SHARE PAYABLE DEC 3 TO STOCK OF RECORD NOV 18 THE SHARES CLOSED AT 14875 UP 50 CENTS OR 35 IN TRADING YESTERDAY 9311100052 931110 BUSINESS BRIEF WEIRTON STEEL CORP SPECIAL MEETING IS CANCELED WORKERS' OPPOSITION CITED FACED WITH GROWING OPPOSITION BY WORKERS WEIRTON STEEL CORP CANCELED A SPECIAL MEETING TOMORROW CALLED TO INCREASE THE NUMBER OF AUTHORIZED SHARES OF COMMON STOCK CHAIRMAN AND CHIEF EXECUTIVE OFFICER HERBERT ELISH SAID THERE HAD BEEN SUBSTANTIAL CONFUSION AMONG THE COMPANY'S EMPLOYEES ABOUT THE IMPLICATIONS OF THE PROPOSAL WHICH CALLED FOR INCREASING THE NUMBER OF AUTHORIZED SHARES OF COMMON STOCK BY 60 MILLION SHARES THE COMPANY CURRENTLY HAS 265 MILLION COMMON SHARES OUTSTANDING WEIRTON WVABASED WEIRTON STEEL IS AN ESOP AND WORKERS COMPLAINED THE NEW SHARES WOULD DILUTE THEIR OWNERSHIP INTEREST THE PROPOSAL CALLED FOR SELLING 30 MILLION OF THE ADDITIONAL SHARES TO THE PUBLIC WHILE RESERVING THE OTHER 30 MILLION FOR EMPLOYEES MR ELISH SAID THE COMPANY REMAINS CONVINCED THAT THE SALE OF ADDITIONAL SHARES IS NECESSARY FOR ITS FINANCIAL VIABILITY THE COMPANY SAID IT WOULD RESUBMIT THE PROPOSAL FOR AN INCREASE IN COMMON STOCK IN THE NEAR FUTURE 9311100051 931110 BUSINESS BRIEF LOMAS FINANCIAL CORP CHARGES FOR RESERVE FUND TO CAUSE FIRSTPERIOD LOSS LOMAS FINANCIAL CORP DALLAS SAID IT EXPECTS TO REPORT AN OPERATING PROFIT IN ITS FISCAL FIRST QUARTER ENDED SEPT 30 BUT A CHARGE RELATED TO A RESERVE FUND WILL RESULT IN A NET LOSS FOR THE PERIOD IN THE YEAREARLIER QUARTER LOMAS RECORDED NET INCOME OF 44 MILLION OR 22 CENTS A SHARE THE COMPANY SAID IT WILL ESTABLISH A 50 MILLION PROVISION AGAINST ANY FUTURE IMPAIRMENT IN THE CARRYING VALUE OF ITS MORTGAGESERVICING PORTFOLIO THE COMPANY SAID THE DECISION REFLECTS UNPRECEDENTED PREPAYMENTS OF MORTGAGE LOANS IN OCTOBER BUT IT SAID THAT THE PREPAYMENTS ARE ALSO CREATING RECORD PRODUCTION OF NEW MORTGAGES TO SERVICE OVERALL THE COMPANY EXPECTS ITS SERVICING PORTFOLIO OVER THE LAST THREE MONTHS OF 1993 WILL REMAIN SUBSTANTIALLY UNCHANGED MICHAEL PATRICK LOMAS'S CHIEF FINANCIAL OFFICER SAID THE VALUE OF ITS PORTFOLIO HASN'T BEEN IMPAIRED BUT ESTABLISHING THE RESERVE WAS A PRUDENT DECISION 9311100050 931110 MOMENTUM STOCK BUYBACK BELLEVUE WASH MOMENTUM CORP A PUBLISHING AND PRINTING CONCERN SAID ITS DIRECTORS AUTHORIZED THE REPURCHASE OF AS MANY AS 160000 SHARES OR 45 OF ITS STOCK OUTSTANDING ON THE OPEN MARKET FROM TIME TO TIME 9311100049 931110 FOREIGN EXCHANGE DOLLAR ADVANCES AGAINST MARK AND YEN AFTER REPORT OF TAMED US INFLATION BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR ENDED HIGHER AGAINST THE MARK AND THE YEN TUESDAY AFTER A REPORT SHOWING THAT US INFLATION PRESSURES REMAIN SURPRISINGLY MUTED TRIGGERED A WAVE OF DOLLAR BUYING MEANWHILE THE CANADIAN DOLLAR WAS WEAKENED BY A NEWSPAPER REPORT PREDICTING THAT THE GOVERNMENT'S BUDGET DEFICIT WOULD BE WIDER THAN EXPECTED IN ADDITION THE US DOLLAR GAINED AGAINST ITS CANADIAN COUNTERPART BECAUSE OF GROWING CONCERN OVER A NEGATIVE OUTCOME IN NEXT WEDNESDAY'S VOTE IN CONGRESS ON THE NORTH AMERICAN FREE TRADE AGREEMENT OR NAFTA LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16928 MARKS UP FROM 16853 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10793 YEN UP A BIT FROM 10783 YEN STERLING WAS TRADING AT 14690 DOWN FROM 14810 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10788 YEN AND AT 16923 MARKS DEALERS SAID THE DOLLAR WAS ON A SEESAW TUESDAY AS PLAYERS PONDERED THE IMPLICATIONS OF AN UNEXPECTED DECLINE IN THE US COMMERCE DEPARTMENT'S PRODUCER PRICE INDEX OR PPI FOR OCTOBER THE INDEX SHOWED THAT PRODUCER PRICES OF FINISHED GOODS DROPPED BY 02 IN THE MONTH COMPARED WITH EXPECTATIONS OF A RISE OF 03 THE CORE RATE WHICH STRIPS OUT THE VOLATILE FOOD AND ENERGY COMPONENTS FELL BY AN EVEN SHARPER 05 INITIALLY TRADERS NOTED THAT THE FIGURES PROMPTED A DOLLAR SELLOFF AS US BOND YIELDS FELL AND PLAYERS REASONED THAT THE FEDERAL RESERVE WOULDN'T NEED TO BOOST US INTEREST RATES ANY TIME SOON BUT THE MARKET QUICKLY REVERSED ITSELF AS INVESTORS DECIDED THAT A LOW US INFLATION NUMBER SHOULD BE A REASON TO BUY THE DOLLAR NOT SELL IT DEALERS EXPLAINED THAT EVEN THOUGH SUBDUED INFLATION IS LIKELY TO KEEP THE YIELDS OFFERED BY US DEPOSITS BELOW THOSE AVAILABLE IN GERMANY AND OTHER EUROPEAN COUNTRIES RELATIVELY STABLE PRICES SHOULD HELP THE US ECONOMY SURGE AHEAD PULLING THE DOLLAR HIGHER IN ITS WAKE IN THE LONG RUN LOW INFLATION IS ONE OF THE FACTORS THAT CONTRIBUTES TO STRONG ECONOMIC GROWTH SAID BENOIT JADOUL A VICE PRESIDENT AT CHASE MANHATTAN BANK IN NEW YORK THE US ECONOMY IS IN A PRETTY GOOD SITUATION COMPARED TO THE REST OF THE WORLD THE BOTTOM LINE IS THAT THE US AND GERMAN ECONOMIES ARE REALLY MOVING IN DIFFERENT DIRECTIONS SAID CARL AMENDOLA VICE PRESIDENT AT BAYERISCHE HYPOTHEKEN UND WECHSELBANK AG IN NEW YORK MR AMENDOLA ADDED THAT GERMAN ECONOMIC WEAKNESS SHOULD BRING FURTHER CUTS IN GERMANY'S OFFICIAL INTEREST RATES THUS REDUCING THE MARK'S ATTRACTIVENESS TO INVESTORS BUT TRADERS ALSO NOTED THAT INTEREST IN SELLING DOLLARS AROUND THE PSYCHOLOGICALLY IMPORTANT 170MARKS LEVEL LIMITED THE DOLLAR'S RISE TUESDAY AND THEY ADDED THAT THAT LEVEL WOULD CONTINUE TO CAP THE DOLLAR UNTIL SOME NEW IMPETUS EMERGES TO DRIVE IT HIGHER AGAINST THE YEN THOUGH THE DOLLAR IS EXPECTED TO CONTINUE TO ADD TO THE GAINS IT CHALKED UP TUESDAY WHICH WERE CAUSED BY A DROP IN THE JAPANESE STOCK MARKET AND A GLOOMY REPORT ON THE JAPANESE ECONOMY BY A GOVERNMENT PLANNING AGENCY 9311100048 931103 LEISURE & ARTS FILMING THE HEROISM OF MANUAL LABOR BY MITCHELL PACELLE SEBASTIAO SALGADO SEEMS AN UNLIKELY CANDIDATE TO HAVE RISEN TO THE PINNACLE OF THE CONTEMPORARY PHOTOJOURNALISM SCENE ABOUT THE ONLY HISTORIC MOMENT THE BRAZILIAN ECONOMISTTURNEDPHOTOGRAPHER HAS EVER CAPTURED ON FILM CAME ABOUT BY SHEER COINCIDENCE TWELVE YEARS AGO AS A RELATIVE UNKNOWN HE HAPPENED TO BE THE ONLY STILL PHOTOGRAPHER TO WITNESS THE ATTEMPTED ASSASSINATION OF RONALD REAGAN THE CONSIDERABLE SUM HE EARNED FOR THOSE PHOTOS HOWEVER DIDN'T IGNITE THE LEAST INTEREST IN CHASING BIG NEWS ON THE CONTRARY THE QUIXOTIC PHOTOJOURNALIST USED HIS EARNINGS FROM OCCASIONAL NEWS ASSIGNMENTS TO FUND MONTHS OF TRAVEL TO LOCATIONS ALLBUTREMOVED FROM THE MODERN WORLD AS COMMUNISM COLLAPSED AND EUROPE AND THE SOVIET UNION CONVULSED MR SALGADO WAS BUSY AT WORK AT TEA PLANTATIONS IN RWANDA TEXTILE MILLS IN BANGLADESH AND VOLCANIC SULFUR FIELDS IN INDONESIA YET IN RECENT YEARS THE 49YEAROLD PARIS RESIDENT HAS COLLECTED NEARLY EVERY MAJOR PHOTOJOURNALISM AWARD AND SEEN HIS BLACKANDWHITE PICTURES FEATURED IN SUCH HIGHPROFILE COLORDOMINATED MAGAZINES AS LIFE STERN EL PAIS AND PARIS MATCH SINGLING HIM OUT AS PERHAPS THE MOST INFLUENTIAL PHOTOJOURNALIST WORKING TODAY KODAK FOOTED MUCH OF THE BILL FOR THE FIVE YEARS OF GLOBETROTTING THAT WENT INTO HIS MOST RECENT PROJECT WORKERS AN ARCHAEOLOGY OF THE INDUSTRIAL AGE APERTURE 400 PAGES 100 THE BIGGEST BOOK EVER PRINTED BY THE NATION'S PREMIER PHOTOGRAPHY PUBLISHER A MUSEUM SHOW IS TOURING THE WORLD AND CAN CURRENTLY BE SEEN AT THE NATIONAL GALLERY IN BRATISLAVA SLOVAKIA ITS NEXT US APPEARANCE IS AT THE UNIVERSITY OF IOWA MUSEUM OF ART IN IOWA CITY IN MARCH MR SALGADO BILLS THE PROJECT AS NOTHING LESS THAN A VISUAL ARCHAEOLOGY OF A TIME THAT HISTORY KNOWS AS THE INDUSTRIAL REVOLUTION DELVE INTO HIS INTRODUCTION THOUGH AND YOU BEGIN TO WONDER JUST HOW HARD HE STUDIED ECONOMICS IN GRADUATE SCHOOL HE WRITES THAT STEEL MAKING IS FOR ME AN ALMOST RELIGIOUS EXPERIENCE AND THE HIGH PRIEST OF THIS INSTITUTION CALLED PRODUCTION IS THE STEELWORKER THE CUBAN SUGARCANE CUTTER IS A WARRIOR A HARDWORKING HERO WHO IS PROUD OF HIS WAR AND SO ON THE DIRTIER AND MORE HAZARDOUS THE JOB THE NOBLER THE WORKER ON A VISIT TO THE US THE MUSTACHIOED FAIRHAIRED PHOTOGRAPHER CLAD IN HIS USUAL FADED DENIM SAT DOWN TO EXPLAIN HIS PROJECT AND HOW HE MUSTERED FINANCIAL SUPPORT TO PHOTOGRAPH 28 MOSTLY UNNEWSWORTHY INDUSTRIES ON FIVE CONTINENTS SPEAKING IN OCCASIONALLY HALTING FRENCHACCENTED ENGLISH MR SALGADO SAID HE MADE THE ROUNDS OF EUROPEAN AND AMERICAN MAGAZINES BEFORE HE EVER SHOT A FRAME I EXPLAINED THAT WE WERE LIVING AT THE END OF AN ERA WE WERE ARRIVING AT THE SECOND STAGE OF THE INDUSTRIAL REVOLUTION HE SAYS IT'S NOT THAT THE WORKING CLASS WILL DISAPPEAR IT'S THE SOCIAL RELATION TO PRODUCTION THAT WAS FINISHED MY IDEA WAS TO DO A PORTRAIT OF THIS WORKING CLASS BEFORE THESE THINGS CHANGED AFTER LIFE MAGAZINE AGREED TO HELP UNDERWRITE THE FIRST THREE YEARS OF HIS PROJECT AND SOME HALFDOZEN EUROPEAN NEWS MAGAZINES AGREED TO PUBLISH THE WORK HE SET OFF ON A WHIRLWIND OF INTERNATIONAL TRAVEL GIVEN THE YEARS HE HAS DEVOTED TO CELEBRATING THE NOBILITY OF THE OPPRESSED PEOPLES OF THE THIRD WORLD IT IS HARDLY SURPRISING THAT MR SALGADO IS PRONE TO SENTIMENTALIZING ABOUT THE WORKING CLASS NEVERTHELESS HIS PICTURES OF MEN AND WOMEN AT WORK SUCCEED ON THE SIMPLEST LEVEL MERELY FOR THE PENETRATING LOOK THEY PROVIDE INTO MODES OF LABOR RANGING FROM THE IDYLLIC TO THE HORRIFIC IT IS IMPOSSIBLE TO LOOK AT THE HUNDREDS OF PHOTOS OF BRAZILIAN COCOA PICKERS CHINESE BICYCLE MAKERS INDIAN CANAL DIGGERS AND COAL MINERS CUBAN CIGAR ROLLERS SICILIAN TUNA FISHERMAN POLISH SHIPBUILDERS AND AMERICAN SLAUGHTERHOUSE WORKERS WITHOUT FEELING A GOOD DEAL WIMPIER BEHIND A DESK WHAT HAS BROUGHT MR SALGADO ACCLAIM THOUGH IS THE NEAR BIBLICAL DRAMA HE BRINGS TO HIS PICTURES HIS SUBJECTS ARE FREQUENTLY BATHED IN STRIKING NATURAL LIGHT HIS PHOTOS OF LEGIONS OF MUDCOVERED BRAZILIAN GOLD MINERS SWARMING UP RICKETY LADDERS OUT OF A GIANT GASH IN THE EARTH ARE AS AWEINSPIRING AS THEY ARE AWFUL HIS VIEWS OF RAGTAG BANGLADESHI CREWS BREAKING UP HUGE BEACHED SHIPS WITH SLEDGEHAMMERS AND ROPES COULD BE SCENES FROM THE APOCALYPSE AS COULD HIS SURREAL PICTURES OF WORKERS STRUGGLING TO QUELL THE RAGING OILWELL FIRES OF POSTWAR KUWAIT MANY OTHER ACCOMPLISHED PHOTOJOURNALISTS WOULD HAVE FOCUSED ON THE TERRIBLE HAZARDS AND DEHUMANIZING MONOTONY OF THE WORK MR SALGADO'S PICTURES ARGUE THAT HOWEVER WEARYING THE LABOR IT IS ALSO A SOURCE OF GREAT PRIDE WORK IS HARD BUT THERE IS DIGNITY IN THE PRODUCTION HE INSISTS THE WORKERS WHO ARE CUTTING SUGAR CANE THEY ARE NOT UNHAPPY BECAUSE THEY ARE CUTTING SUGAR CANE THEY ARE UNHAPPY BECAUSE THEY DON'T RECEIVE ENOUGH MONEY THAT THEY DON'T HAVE ENOUGH LEISURE TIME THEY ARE QUITE PROUD TO DO WHAT THEY DO BECAUSE IN THE END IT'S THE ONLY THING THAT THEY KNOW THAT'S THE POINT ROMANTIC PERHAPS HE CONCEDES BUT HE IS UNAPOLOGETIC IF IT'S GOOD IF IT'S BAD THAT'S MY WAY I CAN'T CHANGE THIS I DON'T ROMANTICIZE THINGS TO ROMANTICIZE THINGS IT'S MY BRAZILIAN WAY TO SEE SOCIETY MY WAY TO SEE THE RELATIONSHIP BETWEEN THE SOCIAL GROUPS THAT CAN BE PART OF MY QUALITY THAT CAN BE PART OF MY PROBLEM IT'S APT THAT MR SALGADO CITES HIS ADMIRATION FOR THE DEPRESSIONERA DOCUMENTARY PHOTOGRAPHY OF THE RURAL POOR DONE BY FARM SECURITY ADMINISTRATION PHOTOGRAPHERS LIKE DOROTHEA LANGE FOR HIS WORK IN MANY WAYS HARKS BACK TO THE PRETELEVISION DAYS WHEN PHOTOGRAPHY WAS A POWERFUL FORCE FOR SOCIAL CHANGE WHILE HE MAY NOT SUCCEED IN CONVINCING US THE WORLD WILL BE WORSE OFF IF MUCH TRADITIONAL MANUAL LABOR IS PHASED OUT IT'S DIFFICULT TO LOOK AT HIS PICTURES WITHOUT FEELING SYMPATHY FOR THE VAST CLASS OF WORKERS THEY SUPPORT MR PACELLE COVERS REAL ESTATE FOR THE JOURNAL IN NEW YORK A NOV 3 LEISURE & ARTS ARTICLE ABOUT SEBASTIAO SALGADO INCORRECTLY STATED THAT HE WAS THE ONLY STILL PHOTOGRAPHER TO GET SHOTS OF THE ATTEMPTED ASSASSINATION OF RONALD REAGAN HE WAS IN FACT THE ONLY STILL PHOTOGRAPHER WITH COLOR FILM 9311100047 931110 BUSINESS BRIEF MOBLEY ENVIRONMENTAL SERVICES INC WASTE COMPANY REPORTS CHANGES IN ITS MANAGEMENT MOBLEY ENVIRONMENTAL SERVICES INC KILGORE TEXAS SAID IT HAD MADE CHANGES IN ITS UPPER MANAGEMENT RECORDED RESTRUCTURING CHARGES AND ELIMINATED 70 JOBS OR ABOUT 20 OF ITS WORK FORCE THE WASTE MANAGEMENT CONCERN SAID THAT MICHAEL M STARK ITS PRESIDENT AND CHIEF OPERATING OFFICER HAD ALSO ASSUMED THE DUTIES OF CHIEF EXECUTIVE OFFICER FROM JOHN MOBLEY WHO WILL CONTINUE AS CHAIRMAN THE COMPANY SAID THE ELIMINATED JOBS WERE PRIMARILY IN ITS HAZARDOUS WASTE UNIT WHICH IS BEING REDUCED IN SIZE MOBLEY WHICH HAD EARLIER SAID IT EXPECTED A SUBSTANTIAL THIRDQUARTER LOSS REPORTED A NET LOSS OF 52 MILLION OR 66 CENTS A SHARE ON REVENUE OF 84 MILLION THE FIGURE INCLUDES A CHARGE OF 46 MILLION OR 58 CENTS A SHARE INVOLVING THE WRITEDOWN OF CERTAIN ASSETS IN ITS HAZARDOUS WASTE BUSINESS SEVERANCE COSTS AND LEGAL AND CONSULTING COSTS ASSOCIATED WITH REGULATORY ISSUES SURROUNDING ITS GIBRALTER CHEMICAL RESOURCES INC WASTEDISPOSAL UNIT 9311100046 931110 BUSINESS BRIEF PS GROUP INC USTRAVEL SYSTEMS INC UNIT TO BE SOLD FOR 46 MILLION PS GROUP INC HAS AGREED IN PRINCIPLE TO SELL ITS 85 STAKE IN USTRAVEL SYSTEMS INC FOR 46 MILLION TO A GROUP CONTROLLED BY THE PRITZKER FAMILY WHICH ALREADY OWNS THE OTHER 15 OF THE TRAVELMANAGEMENT UNIT PENDING ANTITRUST CLEARANCE AND FINAL AGREEMENT ON CONTRACT DETAILS PS GROUP SAID IT EXPECTS THE TRANSACTION TO CLOSE BEFORE THE END OF THE YEAR THE COMPANY INTENDS TO USE PROCEEDS FROM THE SALE TO RETIRE ITS REMAINING BANK DEBT OF ABOUT 28 MILLION AND TO PROVIDE COLLATERAL FOR CERTAIN OUTSTANDING LETTERS OF CREDIT PS GROUP SAID IT EXPECTS TO RECORD A PRETAX PROFIT OF 27 MILLION TO 29 MILLION FROM THE SALE ONCE THE SALE IS COMPLETED PS GROUP SAID THAT IT WILL TERMINATE A PROPOSED OFFERING OF FOUR MILLION SHARES USTRAVEL SYSTEMS' CHAIRMAN PETER SONTAG AND PRESIDENT RALPH MENAKER WILL CONTINUE TO RUN THE UNIT UNDER THE SAME NAME 9311100045 931110 AT&T TO END SALES OF I PLAN' PHONE PROGRAM MARKETING TO TURN TOUGHER TO STOP MARKET SLIDE IN LONGDISTANCE CALLS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FEELING THE HEAT FROM SLICKER LONGDISTANCE PLANS AMERICAN TELEPHONE & TELEGRAPH CO'S NEW CONSUMERSERVICES CHIEF SAID HE WILL REPLACE AT&T'S MUCH DERIDED I PLAN WITH COMBATIVE MARKETING TACTICS JOSEPH P NACCHIO WHO WAS NAMED PRESIDENT OF AT&T'S CONSUMER BUSINESS IN AUGUST SAID THE COMPANY MUST CREATE EMOTIONAL TIES TO ITS CUSTOMERS IF IT WANTS TO BEAT MCI COMMUNICATIONS CORP AND OTHER RIVALS IN THE CONSUMER MARKET WHILE MR NACCHIO OFFERED FEW SPECIFICS ON THE PRODUCTS AND SERVICES THAT AT&T WILL OFFER TO BOND WITH CALLERS AND REVERSE ITS LONGDISTANCE SLIDE HE VOWED TO RUN HARDEREDGED ADVERTISEMENTS THAT POINT OUT RIVALS' DEFICIENCIES AND VERY AGGRESSIVE MARKETING FROM AT&T MINUS THE I PLAN THE I IN THE I PLAN STOOD FOR THE WORD INDIVIDUAL AND WAS DESIGNED TO BE AT&T'S ANSWER TO MCI'S FRIENDS AND FAMILY DISCOUNT PLAN YOU'LL SEE ME MOVE GRACEFULLY AWAY FROM THE I PLAN MR NACCHIO SAID IN AN INTERVIEW THE PROGRAM WHICH ALSO PROMOTED NEW AT&T PRODUCTS FAILED TO HOOK CONSUMERS PRIMARILY BECAUSE MOST PEOPLE FOUND IT INSCRUTABLE HE CONCEDED AT&T'S SHARE OF THE ROUGHLY 30 BILLION MARKET FOR CONSUMER LONGDISTANCE SERVICE CONTINUES TO SLIP FROM ITS CURRENT LEVEL OF 60 ITS LONGDISTANCE REVENUE IS FLAT YET MCI CONTINUES TO FARE WELL WITH 19 OF THE MARKET IT HAS SIGNED UP MORE THAN 10 MILLION NEW CALLERS UNDER THE FRIENDS AND FAMILY PROGRAM THAT AT&T HAD HARSHLY ATTACKED MCI IS ADDING MORE THAN ONE PERCENTAGE POINT TO ITS MARKET SHARE EACH YEAR AS IT REPORTS DOUBLEDIGIT GROWTH IN REVENUE AND PROFIT THAT PLACES MR NACCHIO IN ONE OF THE HOTTEST SEATS AT AT&T TO SLOW MCI'S INROADS AT&T OVERHAULED PART OF ITS MANAGEMENT LAST AUGUST IT PUT A FORMER CHIEF FINANCIAL OFFICER ALEX MANDL IN CHARGE OF ALL COMMUNICATIONS SERVICES IT ALSO ASSIGNED MR NACCHIO TO HEAD CONSUMER SERVICES AND BEAT BACK MCI AS HE DID IN AT&T'S BUSINESS SERVICES UNIT MCI'S FRIENDS PLAN OFFERED A QUICK DISCOUNT IN RETURN FOR PROVIDING THE NAMES OF FRIENDS AND FAMILY MEMBERS WHO WOULD SIGN UP FOR MCI SERVICE AT&T'S I PLAN LUMBERED INTO THE MARKET ON A MASSIVE AD CAMPAIGN THAT LEFT CUSTOMERS CONFUSED ABOUT VAGUE OFFERS OF DISCOUNTS AND NEW AT&T CONSUMER PRODUCTS DETERMINED TO AVOID MAKING THAT MISTAKE AGAIN MR NACCHIO SAID HE WILL DEPLOY DELTA FORCE TACTICS TO ASSESS QUICKLY A RIVAL'S OFFER TO CONSUMERS AND RESPOND INSTANTLY YESTERDAY HE RESPONDED TO A NEW INTERNATIONAL DISCOUNT PLAN FROM MCI BY MATCHING THE PRICING AND COVERING MORE COUNTRIES IT TOOK US 22 MONTHS TO RESPOND TO FRIENDS AND FAMILY WITH THE I PLAN HE SAID THIS RESPONSE CAME IN FIVE DAYS YOU'LL SEE MORE OF THAT HE ADDED I'M NOT GOING TO LOSE CUSTOMERS TO AVOID COMPETING ON PRICE MCI WASN'T IMPRESSED IT LOOKS LIKE MCI IS FOCUSED ON THE CUSTOMER WHILE AT&T APPEARS TO BE FOCUSED ON MCI SAID ANGELA DUNLAP MCI'S PRESIDENT OF CONSUMER MARKETS WE WERE FIRST WITH A CONSUMER PLAN A NEW COLLECTCALLING PLAN AND A TOLLFREE 800 NUMBER FOR THE HOME WHEN IS AT&T GOING TO COME UP WITH AN INNOVATION TOWARD THAT END MR NACCHIO HAS HIRED AWAY SEVERAL CONSUMERMARKETING EXPERTS FROM COMPANIES SUCH AS PROCTER & GAMBLE CO AND JOHNSON & JOHNSON TO OVERHAUL AT&T'S SELLING TECHNIQUES HE HAS ALSO BROUGHT IN TECHNICAL EXPERTS TO CHANGE THE WAY AT&T BILLS EACH CUSTOMER AND COLLECTS INFORMATION ON CALLING HABITS CONTROLLING MY CUSTOMER INFORMATION IS IMPORTANT HE SAID ADDING THAT AT&T WILL LOOK AT WAYS OF BILLING CUSTOMERS DIRECTLY RATHER THAN THROUGH THE LOCAL BABY BELL PHONE COMPANIES HIS BIGGEST WEAPON ULTIMATELY MAY BE THE MARKETING OF CELLULAR SERVICES TOGETHER WITH AT&T LONGDISTANCE AT&T IS ACQUIRING MCCAW CELLULAR COMMUNICATIONS CO WHILE MCI DOESN'T OWN A CELLULAR BUSINESS AT&T STOCK CLOSED UNCHANGED AT 55875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9311100044 931110 BUSINESS BRIEF FIRST COMMERCIAL CORP HOLDING COMPANY TO BUY STATE FIRST FINANCIAL CORP FIRST COMMERCIAL CORP SAID IT AGREED TO ACQUIRE CLOSELY HELD STATE FIRST FINANCIAL CORP OF TEXARKANA ARK FOR STOCK VALUED AT 112 MILLION THE ACQUISITION EXPANDS FIRST COMMERCIAL'S PRESENCE IN NORTHEAST TEXAS AND SOUTHWEST ARKANSAS STATE FIRST HAS FIVE BANKS IN THAT AREA AND ASSETS OF 713 MILLION EARLIER THIS YEAR THE LITTLE ROCK ARK BANK HOLDING COMPANY PURCHASED FOUR BANKS IN NORTHEAST TEXAS ITS FIRST ENTRY INTO THE NEIGHBORING STATE WITH COMPLETION OF THE STATE FIRST ACQUISITION AND PENDING PURCHASES OF THREE ARKANSAS BANKS FIRST COMMERCIAL SAID IT WILL HAVE ASSETS OF 42 BILLION AND 23 AFFILIATE BANKS INCLUDING 14 IN ARKANSAS TWO IN TENNESSEE AND ONE IN OKLAHOMA FIRST COMMERCIAL SAID IT WOULD PAY 34 MILLION NEWLY ISSUED COMMON SHARES FOR STATE FIRST'S SHARES OUTSTANDING FIRST COMMERCIAL HAS 117 MILLION SHARES OUTSTANDING IN LATE NASDAQ STOCK MARKET TRADING YESTERDAY FIRST COMMERCIAL SHARES WERE UP 1 AT 33 9311100043 931110 WHITE HOUSE IS NEGOTIATING CHANGES IN GRAZINGFEE PLAN TO WIN NAFTA VOTES BY TIMOTHY NOAH AND JACKIE CALMES STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION TRYING TO SECURE VOTES FOR THE NORTH AMERICAN FREE TRADE AGREEMENT IS NEGOTIATING POSSIBLE CHANGES IN ITS PLAN TO INCREASE GRAZING FEES INTERIOR SECRETARY BRUCE BABBITT SAID LATE LAST MONTH THAT THE PLAN WHICH WOULD ALSO INSTITUTE OTHER CONSERVATIONORIENTED REFORMS OF FEDERAL RANGELAND WOULD BE ISSUED WITHIN DAYS BUT THE PROPOSAL WASN'T ISSUED AND NOW HAS BEEN DELAYED SEVERAL WEEKS THE HOUSE IS SET TO VOTE ON NAFTA NEXT WEDNESDAY KEVIN SWEENEY THE INTERIOR DEPARTMENT'S COMMUNICATIONS DIRECTOR DENIED ANY CONNECTION BETWEEN THE GRAZINGFEE PROPOSAL AND THE ADMINISTRATION'S ATTEMPTS TO WIN VOTES FOR THE TRADE AGREEMENT WHICH WOULD DISMANTLE TRADE BARRIERS BETWEEN THE US CANADA AND MEXICO OVER 15 YEARS BUT A WHITE HOUSE OFFICIAL CONFIRMED THAT THE ADMINISTRATION IS NEGOTIATING ON THE GRAZINGFEE PLAN IN ORDER TO SHORE UP SUPPORT FOR THE TREATY IN A LETTER TO PRESIDENT CLINTON LAST WEEK 10 HOUSE REPUBLICANS FROM WESTERN STATES LINKED THE TWO ISSUES BY SAYING THEY WERE RECONSIDERING THEIR SUPPORT FOR NAFTA BECAUSE THEY REJECTED MR BABBITT'S LATEST EFFORTS ON THE RANGELAND PROPOSAL REP BOB SMITH THE PRONAFTA OREGON REPUBLICAN WHO ORGANIZED THE LETTER IS CONVINCED THAT THE LETTER LED TO THE ADMINISTRATION'S DECISION TO WITHDRAW SUPPORT FOR A LEGISLATIVE VERSION OF THE PROPOSAL SPONSORED BY SEN HARRY REID D NEV PRESIDENT CLINTON ON MONDAY SPOKE WITH SEN BEN NIGHTHORSE CAMPBELL D COLO WHO URGED HIM NOT TO PRESS AHEAD ON THE ISSUE BUT SEN REID SAID HE PULLED THE MEASURE BECAUSE IT LACKED THE 60 VOTES NECESSARY TO BEAT A SENATE FILIBUSTER THE INTERIOR DEPARTMENT'S GRAZINGFEE PROPOSAL MR BABBITT HAS SAID WOULD INCREASE FEES TO 428 PER ANIMAL UNIT MONTH FROM THE 186 PER ANIMAL UNIT MONTH AN ANIMAL UNIT MONTH IS THE AMOUNT OF FORAGE IT TAKES TO FEED ONE COW AND A CALF OR FIVE SHEEP FOR ONE MONTH NAFTA MAY ALSO HAVE INFLUENCED THE ADMINISTRATION'S DECISION ON A HOTLY CONTESTED AWARD OF TWO AIRLINE ROUTES TO LONDON THE TRANSPORTATION DEPARTMENT SAID FRIDAY THAT IT INTENDED TO AWARD THE ROUTES TO AMR CORP'S AMERICAN AIRLINES SERVING RALEIGHDURHAM NC AND NASHVILLE TENN UTAH BACKERS OF DELTA AIR LINES' RIVAL BID TO SERVE SALT LAKE CITY CLAIM THAT THE ADMINISTRATION'S ACTION WAS INTENDED TO WIN PRONAFTA VOTES FROM THE LARGER NORTH CAROLINA DELEGATION NORTH CAROLINA REPS TIM VALENTINE AND DAVID PRICE BOTH OF WHOM FOUGHT HARD FOR THE RALEIGH ROUTE ARE EXPECTED TO COME OUT IN FAVOR OF NAFTA AND REP BOB CLEMENT OF TENNESSEE ANNOUNCED HIS SUPPORT YESTERDAY THOUGH THE CONGRESSIONAL DEMOCRATS ALL DENY ANY DEALS WERE MADE COLLEAGUES SAID THE ROUTE DECISION EASES THE WAY FOR THEM TO SUPPORT NAFTA YESTERDAY A SPOKESWOMAN FOR NORTH CAROLINA GOV JIM HUNT A NAFTA PROPONENT SAID IT MAY BE HARD FOR UTAH FOLKS TO UNDERSTAND BUT WE WON IT FAIR AND SQUARE BUT A HUNT AIDE SAID IF IT WASN'T FOR NAFTA THIS DECISION WOULD HAVE BEEN BOTTLED UP FOR THREE OR FOUR WEEKS TRANSPORTATION DEPARTMENT OFFICIALS WOULDN'T SAY WHETHER TRANSPORTATION SECRETARY FEDERICO PENA FOLLOWED HIS STAFF'S RECOMMENDATION IN MAKING THE ROUTE DECISIONS IN THE PAST THE STAFF HAS RECOMMENDED DIVIDING ROUTES AMONG CARRIERS AND MOST PARTICIPANTS IN THE LONDON ROUTE CASE HAD ASSUMED AMERICAN WOULD RECEIVE JUST ONE OF THE ROUTES A DEPARTMENT SPOKESMAN SAID THE DECISION WHILE DIFFICULT WAS BASED ON THE MERITS SEPARATELY THE WAYS AND MEANS COMMITTEE VOTED 2512 FOR LEGISLATION IMPLEMENTING NAFTA BUT THE MARGIN WASN'T SEEN AS AN INDICATOR OF NEXT WEEK'S FULL HOUSE VOTE ANYBODY WHO THINKS THAT WAS MOMENTUM SIMPLY DOESN'T UNDERSTAND HOW THIS VOTE WAS PUT TOGETHER SAID REP JIM MCDERMOTT D WASH THAT WAS SIMPLY A PROCEDURAL VOTE TO MOVE THE BILL OUT OF COMMITTEE EVEN SO PRONAFTA HOUSE LEADERS CLEARLY HAD WORKED TO SEND A POSITIVE SIGNAL IN THE CRITICAL FINAL WEEK AND THEIR SIDE GOT A LIFT FROM THE RESULT AS LATE AS MONDAY NIGHT THE LEADERS WERE PLANNING FOR THE WAYS AND MEANS COMMITTEE TO SIMPLY SEND THE BILL TO THE HOUSE FLOOR ON A VOICE VOTE GIVEN THEIR UNCERTAINTY ABOUT HOW A RECORDED VOTE WOULD COME OUT BUT SPEAKER THOMAS FOLEY D WASH AND COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D ILL CALLED SOME WAVERING MEMBERS TO ASK THAT THEY VOTE FOR NAFTA NOW BOTH REP MCDERMOTT AND REP BILL BREWSTER D OKLA FOR EXAMPLE SAID THEY REMAIN UNDECIDED ABOUT NEXT WEEK'S HOUSE VOTE DESPITE THEIR YES VOTE IN COMMITTEE REP BREWSTER SAID HE IS STILL AWAITING CONCESSIONS FOR PEANUT AND WHEAT GROWERS AND CATTLE RANCHERS I DON'T THINK THE WAYS AND MEANS VOTE CHANGES THE EQUATION ONE IOTA SAID STAUNCHLY ANTINAFTA REP SANDER LEVIN D MICH THE COMMITTEE HAS LONG BEEN MORE FREETRADEORIENTED THAN THE FULL HOUSE AND THE ADMINISTRATION STILL FACES AN UPHILL BATTLE NONETHELESS THE ADMINISTRATION AND ITS SUPPORTERS WERE BUOYED YESTERDAY BY NEWS OF SEVERAL CONVERTS TO THEIR SIDE AMONG THEM REPS BENJAMIN CARDIN AND STENY HOYER BOTH MARYLAND DEMOCRATS DAN GLICKMAN D KAN AL SWIFT D WASH AND THOMAS RIDGE R PA BUT THE NAFTA OPPOSITION ALREADY WITHIN STRIKING DISTANCE OF THE VOTES NEEDED TO KILL THE PACT PICKED UP AT LEAST AS MANY ADHERENTS AS THE PRONAFTA SUPPORTERS THIS WEEK AMONG THOSE THE FOES NOW COUNT ON THEIR SIDE ARE GOP REPS PETER BLUTE OF MASSACHUSETTS JAMES SAXTON OF NEW JERSEY BARBARA VUCANOVICH OF NEVADA ED ROYCE OF CALIFORNIA AND ELTON GALLEGLY OF CALIFORNIA OF THE REPUBLICANS ON THE WAYS AND MEANS COMMITTEE JUST TWO VOTED AGAINST NAFTA REP WALLY HERGER OF CALIFORNIA WHOSE DISTRICT INCLUDES ACTIVISTS LOYAL TO NAFTA OPPONENT ROSS PEROT AND REP RICK SANTORUM WHO IS RUNNING FOR THE SENATE IN PENNSYLVANIA MEANWHILE IN A CONTINUING BID TO SECURE SUPPORT IN FLORIDA'S VOTERICH DELEGATION THE ADMINISTRATION AGREED TO CONCESSIONS FOR VEGETABLE GROWERS BASED ON THOSE GRANTED LAST WEEK FOR SUGAR AND CITRUS PRODUCERS AS A RESULT DEMOCRATIC REP JIM BACCHUS WHO GOT LARYNGITIS AMID THE NEGOTIATIONS LAST NIGHT ANNOUNCED HIS SUPPORT FOR NAFTA ALONG WITH THE INFLUENTIAL FLORIDA FRUIT AND VEGETABLE ASSOCIATION THE AGREEMENTS FOR GROWERS OF TOMATOES AND OTHER VEGETABLES DON'T DIRECTLY PERTAIN TO NAFTA ACCORDING TO REP BACCHUS'S OFFICE BUT INSTEAD COMMIT THE ADMINISTRATION TO VARIOUS INDUSTRYBACKED POLICIES IN SEPARATE GLOBAL TRADE TALKS SUPPORTERS CLAIMED MOMENTUM WE'RE MOVING IN THE RIGHT DIRECTION SAID HOUSE SPEAKER THOMAS FOLEY D WASH AS HE LEFT THE WHITE HOUSE AFTER LUNCH WITH PRESIDENT CLINTON BUT HE ADDED REFERRING TO NAFTA OPPONENT REP DAVID BONIOR D MICH HE DOESN'T HAVE NOR DO WE A FIRM MAJORITY MOREOVER WHITE HOUSE AIDES BELIEVE THE DISPARITY BETWEEN MR BONIOR'S COUNT WHICH SHOWS OPPONENTS WITH ENOUGH VOTES TO DEFEAT NAFTA AND THEIR OWN WHICH SHOWS THE OPPONENTS ARE STILL SHORT IS THE RESULT OF A DISAGREEMENT ABOUT THE SIZE OF REPUBLICAN SUPPORT DANIEL PEARL CONTRIBUTED TO THIS ARTICLE 9311100042 931110 BUSINESS BRIEF CONVERSION INDUSTRIES INC FINANCIAL SERVICES CONCERN TO POST LOSS FOR 1ST PERIOD CONVERSION INDUSTRIES INC SAID IT EXPECTS TO REPORT A NET LOSS FOR THE FISCAL FIRST QUARTER ENDED SEPT 30 OF 41 MILLION OR 82 CENTS A SHARE IT HAD PROFIT OF 54 MILLION OR 155 A SHARE A YEAR EARLIER CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOHN P MCGRAIN SAID THE LOSS IN THE PERIOD ENDED SEPT 30 STEMMED FROM A MAJOR ACCOUNTING CHANGE THE FIRST QUARTER IS NOT INDICATIVE OF WHAT OUR YEAR IS GOING TO BE LIKE HE SAID THE PASADENA CALIF CONCERN HAD NEGATIVE REVENUE OF 41 MILLION COMPARED WITH REVENUE OF 18 MILLION A YEAR EARLIER NEGATIVE REVENUE IS THE DECREASE IN VALUE OF THE COMPANY'S PORTFOLIO THE NUMBER OF SHARES OUTSTANDING ROSE TO ABOUT FIVE MILLION FROM 35 MILLION IN THE FIRST PERIOD THE COMPANY ADOPTED AN ACCOUNTING POLICY THAT MARKS UP THE ASSETS IN ITS PORTFOLIO TO MARKET VALUE RATHER THAN TO COST THE FINANCIAL SERVICES CONCERN IDENTIFIES INVESTS IN AND SPONSORS EMERGING GROWTH COMPANIES 9311100041 931110 TECHNOLOGY ORACLE PREDICTS INTERACTIVE GEAR BY EARLY 1994 BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL REDWOOD CITY CALIF A LOT OF PEOPLE THINK THE INFORMATION HIGHWAY WON'T GO ANYWHERE UNTIL 1995 LAWRENCE ELLISON EXPECTS TO SURPRISE THEM THE CHIEF EXECUTIVE OFFICER OF ORACLE CORP SAYS HIS SOFTWARE COMPANY HAS CRACKED ONE OF THE TOUGHEST PROBLEMS FOR MULTIMEDIA NETWORKS MANAGING THE COMPLEX INTERCHANGES THAT WILL ALLOW MANY THOUSANDS OF CONSUMERS TO ORDER SIMULTANEOUSLY FROM HUGE REPOSITORIES OF COMPUTERIZED MOVIES PHOTOGRAPHS NEWSPAPERS MUSIC AND OTHER DATA WHILE MOST CABLE AND PHONE COMPANIES ARE TALKING ABOUT 1994 MARKET TESTS MR ELLISON INSISTS ORACLE HAS PARTNERS THAT WILL BEGIN SELLING MOVIES OVER PHONE LINES IN VOLUME AS EARLY AS THE FIRST QUARTER OF NEXT YEAR USING A NEW ORACLE DATABASE PROGRAM AND A SUPERCOMPUTER DEVELOPED BY ANOTHER COMPANY HE CONTROLS ORACLE SAYS A MACHINE SHIPPING EARLY NEXT YEAR RESEMBLING THREE SMALL REFRIGERATORS JOINED TOGETHER WILL BE ABLE TO SERVE UP TO 66000 HOMES A VERSION SLATED FOR 1995 COULD SERVE 750000 HOMES WE ARE NOT TALKING TRIALS WE ARE TALKING SERIOUS MASS ROLLOUT MR ELLISON SAYS A LOT OF PEOPLE SHARE THE VISION BUT NOT THAT MANY PEOPLE BELIEVE THE TIMING IT DOES SEEM OPTIMISTIC BELL ATLANTIC CORP THE MOST AGGRESSIVE PROPONENT OF VIDEO ON DEMAND DOESN'T PLAN TO INTRODUCE A COMMERCIAL SERVICE UNTIL THE SECOND HALF OF 1994 THE BIG PHONE COMPANY IS NOW NEGOTIATING A CONTRACT WITH ORACLE PEOPLE FAMILIAR WITH THE COMPANIES' PLANS SAY WHATEVER THE TIMETABLE MULTIMEDIA DATABANKS OF THE SORT DEVELOPED BY ORACLE ARE LIKELY TO BE CRUCIAL TO SORT THROUGH NEW STOREHOUSES OF DIGITIZED INFORMATION COMPETITORS CHASING THE MARKET INCLUDE INTERNATIONAL BUSINESS MACHINES CORP AMERICAN TELEPHONE & TELEGRAPH CO DIGITAL EQUIPMENT CORP AND SILICON GRAPHICS INC ALONG WITH NEW DATA NETWORKS POWERFUL COMBINATIONS OF COMPUTERS AND SOFTWARE ARE ESSENTIAL TO LET CONSUMERS CALL UP NEWS PROGRAMS OR OLD SITCOMS COMPETE IN GROUP VIDEO GAMES AND BROWSE THROUGH RETAILER SHELVES ELECTRONICALLY IN LONDON MILAN OR HONG KONG MR ELLISON AND OTHER ORACLE EXECUTIVES HAVE BEEN TRYING TO CONVINCE JUST ABOUT EVERY MAJOR COMMUNICATIONS AND ENTERTAINMENT COMPANY THAT ITS NEW MEDIA SERVER SOFTWARE CAN DO THE JOB BEST THERE IS A BIG MARKET HERE SAYS FRANK BIONDI CHIEF EXECUTIVE OF VIACOM INC PARENT OF MTV AND OTHER CABLE CHANNELS CLEARLY ORACLE IS AS FAR ALONG IF NOT FURTHER ALONG THAN EVERYONE ELSE IF SO THE EFFORT COULD VINDICATE ONE OF SOFTWARE'S COCKIEST CONTRARIANS WHILE OTHER ENTREPRENEURS RODE THE PC CRAZE ORACLE BECAME A GIANT BY DELIVERING DATABASES ON LARGER COMPUTERS THAT MANAGE CORPORATE RECORDS CENTRALLY AFTER A SPECTACULAR STUMBLE TWO YEARS AGO BROUGHT ON BY OVERLY AGGRESSIVE SALES AND ACCOUNTING PRACTICES ORACLE'S PROFITS AND STOCK PRICE HAVE SURGED MR ELLISON 49 YEARS OLD HOLDS COMPANY STOCK VALUED AT NEARLY 2 BILLION INDULGENCES INCLUDE FAST CARS AND A PAINSTAKINGLY CRAFTED HOUSE THAT RESEMBLES A JAPANESE COUNTRY PALACE MR ELLISON BEGAN BETTING ABOUT FIVE YEARS AGO THAT BUSINESS COMPUTING WOULD TAKE ANOTHER QUANTUM LEAP WHEN DATABASES COULD EXPLOIT THOUSANDS OF MICROPROCESSORS WORKING COOPERATIVELY A TECHNIQUE CALLED MASSIVELY PARALLEL COMPUTING HE BEGAN FINANCING NCUBE CORP A CLOSELY HELD MAKER OF PARALLEL SUPERCOMPUTERS MR ELLISON ESTIMATES THAT HE HAS INVESTED 40 MILLION OF HIS OWN MONEY IN THE 100EMPLOYEE COMPANY SINCE 1990 THE PARALLEL APPROACH CAN YIELD SUPERCOMPUTERS THAT ARE THOUSANDS OF TIMES FASTER THAN CONVENTIONAL MAINFRAMES EQUALLY IMPORTANT SUCH MACHINES CAN BE SCALED UP ALMOST INFINITELY TO SERVE UP BIG HUNKS OF DATA TO NETWORKS OF PERSONAL COMPUTERS OR TV DECODER DEVICES IT'S NOT A NEW IDEA BUT MR ELLISON MAKES PARTICULARLY BOLD CLAIMS ABOUT SOLVING THE VEXING PROBLEM OF PROGRAMMING THE ESOTERIC MACHINES TO RUN HIGHVOLUME TRANSACTIONS AN EFFORT THAT BEGAN AT ORACLE IN 1988 WE ARE DELIVERING IT AND SIGNING CONTRACTS IT WORKS IT'S DONE MR ELLISON SAYS ORACLE PLANS TO SELL ITS MEDIA SERVER SOFTWARE FOR OTHER MASSIVELY PARALLEL MACHINES BESIDES NCUBE'S THOUGH COMPETITORS QUESTION THE SOFTWARE COMPANY'S OBJECTIVITY I THINK THEY ARE JUST TRYING TO PROTECT LARRY'S INVESTMENT SAYS JIM BARTON VICE PRESIDENT IN CHARGE OF SILICON GRAPHICS' MEDIA SYSTEMS UNIT MR ELLISON INSISTS THAT NCUBE HARDWARE WILL HELP SELL ORACLE SOFTWARE LET'S PUT IT THIS WAY I HAVE A MUCH LARGER INVESTMENT IN ORACLE THAN I DO IN NCUBE HE SAYS VIDEO ON DEMAND IS A KEY SELLING POINT FOR THE INFORMATION HIGHWAY BELL ATLANTIC IS RACING TO DELIVER THE SERVICE USING A TECHNOLOGY THAT ALLOWS TRANSMISSION OF COMPRESSED MOVIES OVER PHONE LINES OTHER PHONE AND CABLE COMPANIES PLAN TO WAIT UNTIL THEY HAVE UPGRADED THEIR WIRING SCHEMES FOR MORE SOPHISTICATED TWOWAY PROGRAMMING EITHER WAY THE SERVICE WILL FACE SOME OF THE SAME PROBLEMS VIDEO STORES HAVE MOST CUSTOMERS WILL TAP IN DURING A FEW PRIMETIME HOURS AND MANY WILL WANT THE SAME FILM THEY WILL ALSO DEMAND EASY ENGAGING SOFTWARE MENUS FROM WHICH TO ORDER THEIR MOVIES SOME PROGRESS CAN BE SEEN IN A SMALL DEMONSTRATION ROOM ON THE TOP FLOOR OF ORACLE'S HEADQUARTERS TOWER A 16PROCESSOR NCUBE MACHINE WITH 15 DISK DRIVES HAS BEEN LOADED WITH 40 DIGITIZED MOVIES AND HOOKED UP TO TWO PERSONAL COMPUTERS BENJAMIN LINDER A TECHNICAL MARKETING MANAGER CALLS UP A SIMPLE MENU THAT LETS USERS FIND MOVIES BY CATEGORIES SUCH AS COMEDY OR DRAMA FEATURED ACTORS OR YEAR PRODUCED THE MOVIES ARE HEAVILY COMPRESSED BUT RESEMBLE A VHS VIDEOTAPE IN QUALITY USERS CAN START AND STOP THE ACTION AND JUMP AHEAD THOUGH REWINDING HASN'T BEEN PERFECTED TO REACH THOUSANDS OF CONSUMERS CABLE AND TELEPHONE COMPANIES NEED MUCH LARGER SERVERS AN 8192PROCESSOR NCUBE PRICED AT 15 MILLION TO 20 MILLION CAN SEND OUT 22230 SIMULTANEOUS STREAMS OF VIDEO CABLE AND TELEPHONE COMPANIES BELIEVE THAT NUMBER OF STREAMS WILL SERVE UP TO THREE TIMES AS MANY HOMES MICHAEL MEIRER NCUBE'S PRESIDENT SAYS EACH STREAM COSTS A TELEPHONE OR CABLE COMPANY ABOUT 600 COMPARED WITH 1000 TO 5000 FOR COMPETING SYSTEMS BY 1995 AN UPDATED MACHINE IS SLATED TO HANDLE ABOUT 250000 VIDEO STREAMS AT A COST OF 100 TO 200 EACH WE THINK WE HAVE HARDLY ANY COMPETITION MR MEIRER SAYS BUT SILICON GRAPHICS HAS BEEN PICKED TO SUPPLY THE VIDEO SERVER FOR TIME WARNER INC'S AMBITIOUS NETWORK TRIAL IN ORLANDO FLA U S WEST INC WHICH IS WORKING WITH ORACLE TO REFINE ITS SERVER TECHNOLOGY IS NEVERTHELESS USING DIGITAL EQUIPMENT CORP FOR ANOTHER TRIAL IN OMAHA NEB EVERYBODY WITH A DATABASE PRODUCT SEES THE KIND OF EXCITEMENT AROUND MULTIMEDIA AND VIDEO ON DEMAND SAID JOE WETZEL U S WEST'S EXECUTIVE DIRECTOR OF MULTIMEDIA TECHNOLOGY TIME WILL TELL WHETHER ORACLE WINS OR SOMEBODY ELSE WINS 9311100040 931110 GORE PUTS PEROT ON THE DEFENSIVE IN NAFTA DEBATE VICE PRESIDENT QUESTIONS BILLIONAIRE'S CREDIBILITY ASSAILS HIS SOCIAL' TARIFF BY BOB DAVIS AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON BRANDISHING PHOTOS AND CHARTS VICE PRESIDENT AL GORE PUT ROSS PEROT ON THE DEFENSIVE IN AN AGGRESSIVE EFFORT TO CONVINCE THE US PUBLIC OF THE MERITS OF THE NORTH AMERICAN FREE TRADE AGREEMENT IN A DEBATE ON CNN'S LARRY KING LIVE MR GORE PORTRAYED NAFTA AS AN OPPORTUNITY FOR THE US TO VASTLY EXPAND IN A NEIGHBORING MARKET AND MAKE TRADE RELATIONS WITH MEXICO EVENSTEVEN THE VICE PRESIDENT REPEATEDLY HIT AT MR PEROT'S CREDIBILITY AND TRIED TO PAINT HIM AS THE MODERNDAY EQUIVALENT OF SEN REED SMOOT AND REP WILLIS HAWLEY WHOSE 1930 TARIFF INCREASE IS SEEN BY ECONOMISTS AS DEEPENING THE GREAT DEPRESSION MR GORE EVEN GAVE THE TEXAN A FRAMED PHOTO OF THE TWO LAWMAKERS AND TOLD MR PEROT HE COULD PUT IT ON YOUR WALL MR PEROT COLDLY ACCEPTED THE PHOTO AND PLACED IT FACE DOWN NEXT TO HIM MR PEROT FOR HIS PART SHOWED PICTURES OF SLUMS SURROUNDING PLANTS ALONG THE NORTHERN MEXICO BORDER AND SAID THAT NAFTA WOULD WORSEN SUCH CONDITIONS THIS ISN'T GOOD FOR PEOPLE IN EITHER COUNTRY HE SAID IN HIS BROADEST ATTACK ON THE ADMINISTRATION MR PEROT SAID THAT IF WE PASS NAFTA AND WE PASS HEALTH CARE IF YOUR COMPETITION GOES TO MEXICO YOU'LL HAVE TO GO TOO OR GO OUT OF BUSINESS MR GORE'S EFFORTS WERE CLEARLY PART OF A WHITE HOUSE STRATEGY TO DISCREDIT NAFTA OPPONENTS BY IDENTIFYING THEM WITH MR PEROT WHOSE POPULARITY HAS BEEN SLIPPING IN THE POLLS WHILE MR GORE SUCCESSFULLY CARRIED THROUGH THOSE TACTICS IN LAST NIGHT'S DEBATE IT'S UNCLEAR WHETHER THE DEBATE WILL CHANGE ANY MINDS BEFORE THE HOUSE VOTES ON NAFTA NEXT WEDNESDAY UNDECIDED LAWMAKERS HAVE BEEN UNDER HEAVY PRESSURE IN THEIR DISTRICTS FROM LABOR UNIONS MR PEROT'S UNITED WE STAND AMERICA AND OTHER GROUPS THE WHITE HOUSE HOPES THAT BY TAKING ON MR PEROT THEY CAN TAKE THE HEAT OFF THE LAWMAKERS WE'RE MOVING INTO THE NETHER WORLD OF POLITICAL COVER LABOR SECRETARY ROBERT REICH SAID BEFORE THE DEBATE NEAR THE CLOSE OF THE DEBATE MR PEROT MADE A THREAT AGAINST HOUSE AND SENATE MEMBERS WHO SUPPORT NAFTA WE HAVE A LITTLE SONG WE SING WE REMEMBER IN NOVEMBER WHEN WE STEP INTO THAT LITTLE BOOTH' IF WE HAVE TO WE THE PEOPLE WHO ARE THE OWNERS OF THIS COUNTRY WE'LL CLEAN UP THIS MESS IN WASHINGTON IN '94 MR PEROT SAID REFERRING TO THE CONGRESSIONAL ELECTIONS NEXT YEAR BUT MR GORE QUICKLY RESPONDED CALLING IT A DIRECT POLITICAL THREAT THE NATION MR GORE SAID ISN'T SCARED THE NAFTA QUESTION HE INSISTED IS A CHOICE BETWEEN THE POLITICS OF FEAR AND THE POLITICS OF HOPE THE PAST AND THE FUTURE PESSIMISM AND OPTIMISM LITTLE OF THE DEBATE TURNED ON THE EYEGLAZING DETAILS OF NAFTA WHICH COVERS 1200 PAGES AND WOULD GENERALLY LIBERALIZE TRADE BETWEEN MEXICO THE US AND CANADA OVER 15 YEARS MR PEROT CRITICIZED THE TRADE PACT BY ATTACKING MEXICO'S POVERTY AND ITS ONEPARTY SYSTEM AND IMPLYING THAT NAFTA WOULD MAKE IT WORSE MR GORE HAMMERED AT THE TEXAS BILLIONAIRE FOR HIS FAMILY BUSINESS'S TAXFREE ZONE OUTSIDE THE ALLIANCE AIRPORT IN TEXAS WHICH HAS BEEN PROMOTED AS A GATEWAY TO MEXICO AND SAID THAT MR PEROT WOULD MAKE A PROFIT WHETHER NAFTA PASSED OR NOT THE VICE PRESIDENT HOLDING UP A PROSPECTUS FOR THE PROJECT THAT BORE A PICTURE OF MR PEROT SAID IT CLAIMED THAT THE PROJECT WOULD BE AN IDEAL NATIONAL DISTRIBUTION CENTER FOR PRODUCTS COMING OUT OF MEXICO MR PEROT SAID THE AIRPORT IS OWNED BY THE CITY OF FORTH WORTH AND INSISTED THAT ITS GOAL ISN'T TO DO BUSINESS WITH MEXICO IN AN INDICATION OF HOW MUCH HEAT WAS GENERATED IN THE DEBATE MR PEROT ALSO ACCUSED THE VICE PRESIDENT OF LYING ABOUT WHETHER MR PEROT HAD LOBBIED CONGRESS THE VICE PRESIDENT HAD APPARENTLY REFERRED TO MR PEROT'S 1975 ATTEMPT TO GET A 15 MILLION TAX BREAK FROM THE HOUSE WAYS AND MEANS COMMITTEE BUT WHEN CONFRONTED BY MR PEROT WAS UNABLE TO PROVIDE DETAILS AND ON SEVERAL OCCASIONS MR PEROT DISMISSED NAFTA AS THE PRODUCT OF FOREIGN LOBBYISTS SPENDING HEAVILY TO PROMOTE BUSINESS SOUTH OF THE BORDER TO RECTIFY PROBLEMS WITH NAFTA MR PEROT SUGGESTED WHAT HE CALLED A SOCIAL TARIFF AN IMPORT FEE ON GOODS COMING FROM LOWWAGE COUNTRIES TO HELP COMPANIES HERE COMPETE WITH POOR NATIONS AT THAT POINT MR GORE CUT IN AND SAID YOU'D CHANGE IT NAFTA BY RAISING TAXES MR GORE LOOKING RELAXED AND PRIMED SHED HIS WOODEN IMAGE AS HE PARRIED WITH MR PEROT A MASTER OF THE FOLKSY STATEMENT UNDER MR GORE'S REPEATED PRODDING THE TEXAN OFTEN BECAME TESTY AND ASKED NOT TO BE INTERRUPTED IN ONE EXCHANGE MR PEROT ACCUSED MR GORE OF MISSTATING THE FACTS AND ASKED THE VICE PRESIDENT WOULD YOU EVEN KNOW THE TRUTH IF YOU SAW IT IN AN EFFORT TO TIE THE TRADE PACT TO OTHER UNPOPULAR POLITICAL TARGETS MR PEROT ACCUSED THE MEXICANS AND THE ADMINISTRATION OF TRYING TO BUY THE TRADE PACT REFERRING TO THE REPORTED 30 MILLION THAT MEXICO AND ITS LOBBYISTS HAVE PAID TO NEGOTIATE AND PROMOTE NAFTA MR PEROT SAID THAT IS ROTTEN THAT IS WRONG REFERRING TO THE CLINTON ADMINISTRATION'S DEALMAKING WITH LAWMAKERS MR PEROT SAID THE WHITE HOUSE IS TRYING TO BUY NAFTA BIG TIME WITH YOUR TAX DOLLARS MR GORE THEN DEMANDED THAT MR PEROT DISCLOSE THE SOURCES AND AMOUNT OF THE MONEY BEING SPENT FIGHTING NAFTA MR PEROT RESPONDED BY SAYING THAT HE'S FINANCING THE ACTIVITIES OUT OF HIS OWN POCKET WHEN MR GORE SAID THAT NAFTA WAS SUPPORTED BY FORMER PRESIDENTS FORMER CABINET OFFICIALS AND NOBEL PRIZEWINNING ECONOMISTS EVEN COLIN POWELL THE FORMER CHAIRMAN OF THE JOINT CHIEFS OF STAFF MR PEROT SAID OF GEN POWELL HE'S A GREAT SOLDIER BUT DOESN'T KNOW ANYTHING ABOUT BUSINESS MR GORE TOOK DIRECT AIM AT MR PEROT'S CREDIBILITY HE RECALLED THAT MR PEROT HAD BEEN ON MR KING'S SHOW JUST BEFORE THE PERSIAN GULF WAR AND STATED THAT IT WAS A TERRIBLE MISTAKE BECAUSE IT WILL LEAD TO THE DEATH OF 40000 AMERICAN TROOPS FURTHER THE VICE PRESIDENT SAID THAT MR PEROT HAD CLAIMED TO HAVE TALKED TO THE PERSON WHO HAD ORDERED THE COFFINS FOR THE DEAD SOLDIERS THE VICE PRESIDENT THEN PRESSED ON HE RECALLED THAT MR PEROT HAD PREDICTED THAT AFTER LAST YEAR'S PRESIDENTIAL ELECTION 100 BANKS WOULD FAIL COSTING THE TAXPAYER 100 BILLION MR GORE ENDED THE SEQUENCE WITH A BROADSIDE ATTACK ON MR PEROT'S STYLE THE POLITICS OF NEGATIVISM AND FEAR ONLY GO SO FAR MR GORE SAID MR PEROT ARGUED THAT MEXICO WAS A POOR TRADING PARTNER WITH THE US BECAUSE ITS PEOPLE DON'T HAVE MUCH WEALTH TRADE WITH PEOPLE WHO MAKE MONEY HE SAID THE ADMINISTRATION'S CAMPAIGN AGAINST MR PEROT WAS IN FULL SWING YESTERDAY EVEN BEFORE LAST NIGHT'S DEBATE IN AN INTERVIEW US TRADE REPRESENTATIVE MICKEY KANTOR LAMPOONED THE TEXAS BILLIONAIRE AS THE CHAIRMAN OF THE BOARD OF THE MAD HATTER'S TEA PARTY UNTIL THE PAST FEW DAYS THE ADMINISTRATION HAD SHIED AWAY FROM DIRECTLY ASSAULTING MR PEROT OUT OF CONCERN THAT IT WOULD BUILD HIM UP AND OFFEND HIS FOLLOWERS BUT IN AN 11THHOUR SHIFT IN STRATEGY THE WHITE HOUSE IS LAUNCHING AN ALLOUT ASSAULT MR KANTOR SAID LAWMAKERS WANT THE ADMINISTRATION TO CONFRONT MR PEROT AND THE ADMINISTRATION IS OBLIGING IN AN EFFORT TO COURT VOTES SHARON HOLMAN A SPOKESWOMAN FOR MR PEROT BELITTLED THE ATTACKS ON MR PEROT WHEN YOU CAN'T MAKE ARGUMENTS ON THE FACTS YOU RESORT TO NAME CALLING THAT'S WHAT THEY HAVE LEFT SHE SAID EARLIER IN THE DAY IN WHAT TREASURY UNDERSECRETARY LAWRENCE SUMMERS DESCRIBED AS THE UNDERCARD FOR THE GOREPEROT DEBATE MR SUMMERS SQUARED OFF AGAINST NAFTA FOE HARLEY SHAIKEN A PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY AT A DEBATE ON CAPITOL HILL MR SHAIKEN SAID HE ACCEPTED THE PREMISE THAT INCREASED TRADE BETWEEN THE US AND MEXICO IS IN THE INTEREST OF BOTH COUNTRIES BUT HE ARGUED THAT THE CHIEF FLAW IN THIS NAFTA AND THE SIDE PACTS NEGOTIATED BY THE CLINTON ADMINISTRATION IS THAT THEY DON'T COMMIT THE MEXICAN GOVERNMENT TO GIVE WORKERS MORE POWER TO ORGANIZE UNIONS IT ACCEPTS THE WORST OF MEXICAN LABOR LAW HE SAID THE US HAS SQUANDERED THE MOST IMPORTANT OPPORTUNITY WE HAD TO IMPROVE THE LOT OF MEXICAN WORKERS MR SUMMERS SAID HE WAS SURPRISED TO FIND A NAFTA CRITIC ARGUING THAT THE AGREEMENT IS BAD FOR MEXICAN WORKERS THE MORE COMMON CRITICISM IS THAT IT'S BAD FOR US WORKERS BECAUSE THEIR JOBS WILL MIGRATE SOUTH REJECTING NAFTA HE SAID WOULD DO NOTHING TO IMPROVE THE MEXICAN LABOR RELATIONS PRACTICES TO WHICH MR SHAIKEN OBJECTS WHILE REITERATING ADMINISTRATION ARGUMENTS THAT NAFTA WILL INCREASE US EXPORTS AND CREATE JOBS IN THE US MR SUMMERS ALSO EMPHASIZED THE FOREIGN POLICY AS WELL AS THE ECONOMIC REASONS TO FAVOR NAFTA WE HAD A VERY PAINFUL DEBATE IN THE US ABOUT WHO LOST CHINA I HOPE WE'RE NOT GOING TO HAVE A VERY SIMILAR DEBATE ABOUT WHO LOST LATIN AMERICA HE SAID DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9311100039 931110 WHAT'S NEWS BUSINESS AND FINANCE MEXICO'S CURRENCY SANK 41 AGAINST THE DOLLAR AFTER MEXICO'S CENTRAL BANK UNWILLING TO DEFEND THE PESO AGAINST SPECULATORS BETTING AGAINST NAFTA ABANDONED LONGHELD CURRENCY STABILIZATION LEVELS INVESTORS HAVE GROWN INCREASINGLY FEARFUL THAT THE US CONGRESS WILL DEFEAT NAFTA IN A VOTE NEXT WEDNESDAY THE PRODUCER PRICE INDEX FELL 02 IN OCTOBER SUGGESTING INFLATION IS UNDER CONTROL DESPITE RECENT PICKUPS IN ECONOMIC ACTIVITY WHOLESALE PRICES ARE UP ONLY 04 SO FAR THIS YEAR BOND PRICES ROSE ON THE PRODUCER PRICES REPORT THE BENCHMARK TREASURY 30YEAR BOND'S PRICE CLIMBED 5/8 POINT ITS YIELD DROPPED TO 614 THE CONGRESSIONAL BUDGET OFFICE ESTIMATES THAT THE FIRST INSTALLMENT OF GORE'S MANAGEMENT REFORMS WOULD SAVE LESS THAN 500 MILLION OVER THE NEXT FIVE YEARS ONLY ABOUT ONETWELFTH WHAT THE WHITE HOUSE CLAIMED PEOPLE FAMILIAR WITH THE REPORT SAID RJR NABISCO RAISED THE PRICE OF SOME OF ITS CIGARETTE BRANDS BY A NICKEL A PACK PHILIP MORRIS AND OTHER TOBACCO COMPANIES DIDN'T IMMEDIATELY MATCH THE INCREASE THOUGH MOST ANALYSTS EXPECT THEM TO DO SO TOKYO STOCKS SANK 27 AMID GROWING FEARS THAT THE GOVERNMENT WILL BE UNABLE TO SUPPORT SHARE PRICES OR REVIVE THE ECONOMY THE NIKKEI INDEX DROPPED 49945 POINTS TO 1812571 THE NIKKEI HAS LOST 2184 POINTS OR 108 OVER THE PAST 10 TRADING SESSIONS BOSTON CHICKEN'S STOCK MORE THAN DOUBLED IN THE BIGGEST OPENINGDAY LEAP FOR AN IPO IN TWO YEARS THE RESTAURANT CHAIN'S STOCK WAS PRICED AT 20 AND CLOSED THE DAY AT 4850 THE AGRICULTURE DEPARTMENT PREDICTED THAT THE CORN HARVEST WILL PLUNGE 314 FROM LAST YEAR CORN FUTURES ARE EXPECTED TO SOAR TODAY AT&T'S CONSUMERSERVICES CHIEF SAID HE WILL REPLACE THE COMPANY'S LONGDISTANCE I PLAN WITH NEW MARKETING TACTICS AND SEEK TO CREATE EMOTIONAL TIES TO ITS CUSTOMERS WALMART LIMITED AND NORDSTROM REPORTED EARNINGS GAINS FOR THE LATEST QUARTER AN ENCOURAGING SIGN FOR THE COMING CHRISTMAS SEASON DILLARD DEPARTMENT STORES' PROFIT FELL THE TOP TRANSALASKA PIPELINE REGULATOR CALLED FOR SWEEPING REFORMS IN THE WAY THE OIL INDUSTRY RUNS THE PIPELINE AFTER A HIGHLY CRITICAL AUDIT REPORT WAS SUBMITTED TO THE GOVERNMENT MYLAN LABS NAMED MILAN PUSKAR CHAIRMAN AND CEO OF THE PHARMACEUTICAL FIRM TO SUCCEED ROY MCKNIGHT WHO DIED OF A HEART ATTACK AST RESEARCH PLANS TO CUT ITS GLOBAL WORK FORCE BY ABOUT 3 AND REALIGN MANUFACTURING OPERATIONS TO IMPROVE DISTRIBUTION AND TRIM COSTS THE US WARNED JAPAN NOT TO CHANGE ITS SOFTWARE COPYRIGHT LAW WITHOUT CONSULTING THE US FIRST IN A LETTER CRITICIZING AN ADVISORY PANEL CHARGED WITH RECOMMENDING CHANGES IN JAPAN'S SOFTWARE COPYRIGHT LAW SEGA REPORTED SLOWER PROFIT GROWTH FOR THE FIRST HALF SUGGESTING THAT THE HOT GAME MARKET IS COOLING OFF THE JAPANESE VIDEOGAME MAKER LOWERED ITS FORECAST FOR EARNINGS FOR THE YEAR CITING THE EFFECTS OF THE STRONG YEN BONDS LEHMAN BROTHERS TREASURY INDEX 555276 UP 3366 COMMODITIES OIL 1666 A BARREL OFF FIVE CENTS DOW JONES FUTURES INDEX 13368 OFF 014 SPOT INDEX 12039 UP 019 DOLLAR 10793 YEN UP 010 16928 MARKS UP 00075 9311100038 931110 BUSINESS BRIEF MARTECH USA IS SUED BY SHAREHOLDERS ALLEGING NEGLIGENCE MISREPRESENTATION MARTECH USA INC HAS BEEN SUED BY SHAREHOLDERS FOR ALLEGED NEGLIGENCE EVEN AS NEW INFORMATION ABOUT POSSIBLY QUESTIONABLE PRACTICES AT THE COMPANY HAS EMERGED AT LEAST THREE SEPARATE LAWSUITS HAVE BEEN FILED BY SHAREHOLDERS AGAINST THE COMPANY AND ITS DIRECTORS AND OFFICERS IN THE PAST WEEK IN DELAWARE CHANCERY COURT IN WILMINGTON ACCORDING TO THE COURT'S CLERK THE SUITS ALLEGE THAT MARTECH AND ITS DIRECTORS AND OFFICERS HAVE BEEN NEGLIGENT AND HAVE MISREPRESENTED THE COMPANY'S FINANCIAL CONDITION DETAILS WEREN'T IMMEDIATELY AVAILABLE NEITHER ATTORNEYS FOR THE PLAINTIFFS NOR MARTECH COULD BE REACHED FOR COMMENT MARTECH A POLLUTIONCONTROL AND CONSTRUCTION COMPANY IS FACING LAWSUITS AND INVESTIGATIONS BY MILITARY AUTHORITIES AND OTHERS STEMMING FROM ITS ALLEGED FAILURE TO PAY SUBCONTRACTORS ALLEGED VIOLATIONS OF ENVIRONMENTAL REGULATIONS AND LAWS AND OTHER PROBLEMS THE COMPANY'S STOCK FELL 45 IN ONE DAY FOLLOWING A WALL STREET JOURNAL ARTICLE NOV 2 DETAILING SOME ALLEGATIONS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY IT FELL 375 CENTS OR 83 TO 4125 A SHARE MEANWHILE MORE INFORMATION ABOUT THE ANCHORAGE ALASKABASED COMPANY'S OPERATIONAL PROBLEMS CONTINUES TO EMERGE MARTECH WAS SUSPENDED FROM A 2 MILLION TEST TRACK CONSTRUCTION JOB AT THE RED RIVER ARMY DEPOT IN TEXARKANA TEXAS IN OCTOBER THE COMPANY ALLEGEDLY HAD FAILED TO PAY SUBCONTRACTORS AND HAD FALLEN FAR BEHIND SCHEDULE ON THE JOB ACCORDING TO AN ARMY CORPS OF ENGINEERS SPOKESWOMAN THE ARMY REINSTATED MARTECH ON THE RED RIVER JOB MONDAY AFTER IT PAID HUNDREDS OF THOUSANDS OF DOLLARS TO SUBCONTRACTORS AND PUT AN ADDITIONAL 450000 INTO AN ESCROW ACCOUNT TO COVER FUTURE PAYMENTS TO SUBCONTRACTORS AND SUPPLIERS ACCORDING TO THE ARMY CORPS SPOKESWOMAN AT LEAST TWO OF THE SUBCONTRACTORS HAVE SUED THE COMPANY IN FEDERAL COURT IN DALLAS IN ADDITION THREE WEEKS AGO THE FEDERAL HIGHWAY ADMINISTRATION CANCELED A 46 MILLION MARTECH CONTRACT FOR ROAD CONSTRUCTION AND REPAIR IN YOSEMITE NATIONAL PARK IN CALIFORNIA AN AGENCY ENGINEER SAID THE CONTRACT WAS CANCELED PARTLY BECAUSE PROBLEMS POPPED UP WITH THE DESIGN OF THE PROJECT BUT SHE ALSO CONFIRMED THAT MARTECH WAS BEHIND SCHEDULE ON THE JOB AND THAT THE AGENCY HAS COMPLAINED TO MARTECH IN RECENT WEEKS ABOUT THE COMPANY'S FAILURE TO PAY SUBCONTRACTORS THE ENGINEER ALSO SAID THE AGENCY HAS INFORMED THE COMPANY THAT IT BELIEVES MARTECH FAILED TO PAY ITS OWN EMPLOYEES THE PREVAILING WAGES REQUIRED BY FEDERAL CONTRACTS SHE SAID MARTECH HAS BEEN TRYING TO CORRECT THAT BY PAYING SOME BACK WAGES MARTECH COULDN'T BE REACHED FOR COMMENT MARTECH IN SEPTEMBER SAID IT HIRED FIRST BOSTON CORP TO SELL THE COMPANY OR TAKE OTHER MEASURES TO BOOST ITS STOCK IN THE FISCAL THIRD QUARTER ENDED MAY 31 MARTECH HAD A NET LOSS OF 15 MILLION OR 15 CENTS A SHARE ON REVENUE OF 202 MILLION 9311100036 931110 SMALL STOCK FOCUS MARKET IS FUELED BY INTERESTRATE DROP FOLLOWING FAVORABLE INFLATION REPORT BY WARREN GETLER AND CAITLIN MOLLISON STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SMALL STOCKS CONTINUED TO RALLY AS A BETTERTHANEXPECTED INFLATION REPORT SENT INTEREST RATES TUMBLING THE RUSSELL 2000 INDEX A GAUGE OF SMALLCAPITALIZATION STOCK PERFORMANCE ON THE NASDAQ STOCK MARKET AND THE OTHER MAJOR EXCHANGES ADDED 121 POINTS OR 048 TO 25578 THE CLIMB FOLLOWS A 146POINT JUMP MONDAY BUT LEAVES THE INDEX SHY OF ITS CLOSING RECORD OF 26017 SET EARLY LAST WEEK THE LABOR DEPARTMENT REPORTED YESTERDAY THAT PRODUCER PRICES FELL 02 IN OCTOBER A SURPRISE FOR ECONOMISTS WHO HAD PREDICTED A MODEST INCREASE IN WHOLESALE PRICES ALTHOUGH THE ENCOURAGING REPORT SPARKED THE SMALLCAP RALLY TRADERS SAID MARKET SENTIMENT REMAINS CAUTIOUS ABOUT THE OUTLOOK FOR INTEREST RATES AND INFLATION THEY SAID INVESTORS WILL BE FOCUSED ON TODAY'S CONSUMER PRICE INDEX FOR OCTOBER BONDS RALLIED AND STOCKS FOLLOWED WITH INFLATION FEARS STYMIED SOMEWHAT SAID RICHARD BRUNO MANAGING DIRECTOR OF NASDAQ TRADING AT PAINEWEBBER IN NEW YORK LATE IN THE DAY WE SAW SOME SELLING PRESSURE IT SEEMS TO ME THAT PEOPLE ARE PROBABLY RAISING SOME CASH WAITING TO SEE HOW THE BOND MARKET RESPONDS TO FURTHER DATA ON INFLATION AND ECONOMIC GROWTH THE CONSENSUS IS THAT WE HAVE SOME SIDEWAYS ACTION IN FRONT OF US THE PAINEWEBBER TRADER ADDED IF WE DON'T SEE HIGHER RATES THIS MARKET WILL RALLY AND WE DON'T THINK RATES ARE GOING A WHOLE LOT HIGHER URBAN OUTFITTERS SURGED TO 23 3/4 UP 5 3/4 FROM ITS OFFERING PRICE OF 18 THE PHILADELPHIABASED CLOTHING COMPANY EXPECTS TO USE PROCEEDS FOR NEW STORES EXPANSION OF EXISTING STORES AND GENERAL CORPORATE PURPOSES ON THE EARNINGS FRONT ELECTROCOM AUTOMATION INC NYSE SLIPPED 2 TO 9 1/2 THE DALLAS COMPANY WHICH MAKES AUTOMATED DOCUMENTPROCESSING SYSTEMS SAID IT EXPECTS 1994 EARNINGS TO BE HURT BY DELAYS IN US POSTAL SERVICE DECISIONS ON THE EXERCISE OF OPTIONS UNDER EXISTING CONTRACTS AND THE AWARDING OF CONTRACTS ON WHICH THE COMPANY HAS BID IMPROVED EARNINGS BOOSTED INTUIT INC 5 3/4 TO 43 1/2 FISCAL FOURTHQUARTER EARNINGS FOR THE MENLO PARK CALIF SOFTWAREPRODUCTS COMPANY CLIMBED TO 24 CENTS A SHARE FROM FOUR CENTS A YEAR EARLIER ANALYSTS HAD EXPECTED NET INCOME OF ABOUT 17 CENTS A SHARE PS GROUP INC NYSE SAN DIEGO ROSE 2 1/4 TO 13 7/8 ON NEWS THAT IT EXPECTS TO RECORD A PRETAX PROFIT OF ABOUT 27 MILLION AND 29 MILLION ON A SALE THE COMPANY SAID IT REACHED AN AGREEMENT TO SELL THE TRAVELMANAGEMENT BUSINESS OPERATED BY ITS MAJORITYOWNED SUBSIDIARY USTRAVEL SYSTEMS WITH NET PROCEEDS OF ABOUT 46 MILLION FOR PS GROUP'S PORTION MEDIMMUNE OF GAITHERSBURG MD CLIMBED 2 1/4 TO 27 1/4 THE COMPANY SIGNED A DEFINITIVE PACT WITH AMERICAN CYANAMID TO COPROMOTE CYANAMID'S NEW INTRAVENOUS ANTIBIOTIC ZOSYN AND TO DEVELOP AND PROMOTE PRODUCTS FOR RESPIRATORY SYNCYTIAL VIRUS GOLDMAN SACHS BEGAN COVERAGE ON MEDIMMUNE WITH A BUY RATING WEYCO GROUP MILWAUKEE ROSE 2 TO 32 1/2 THE MEN'S FOOTWEAR DISTRIBUTOR SAID MONDAY THAT A MANAGEMENTLED GROUP THAT INCLUDES THE COMPANY'S PRINCIPAL SHAREHOLDERS HAS PROPOSED TO BUY THE SHARES IT DOESN'T CONTROL FOR 34 A SHARE IN CASH BROOKTROUT TECHNOLOGY INC NEEDHAM MASS SURGED 2 1/2 TO 12 3/4 MARKET PLAYERS SAID OLDE DISCOUNT BROKERS RECOMMENDED STOCK IN THE MAKER OF COMPUTER HARDWARE AND SOFTWARE ORCHARD SUPPLY HARDWARE STORES CORP ROSE 1 3/4 TO 16 THE COMPANY SAID IT WILL ACQUIRE NINE FORMER BUILDERS EMPORIUM STORES ESTABLISHING A PRESENCE IN SOUTHERN CALIFORNIA KIDDER PEABODY & CO UPGRADED ORCHARD OF SAN JOSE CALIF TO STRONG BUY FROM OUTPERFORM SOME INTERESTRATESENSITIVE STOCKS JUMPED HIGHER AS BOND PRICES ROSE HORIZON BANK GAINED 1 TO 17 1/2 AND AMERICAN FEDERAL BANK INCREASED 1 TO 11 1/4 NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW LOWS FOR THE YEAR TO DATE TOTALED 81 WHILE 19 ISSUES HIT NEW LOWS 9311100035 931110 WORLD STOCK MARKETS TOKYO STOCKS TUMBLE AS MARKET FEARS GROW BY JATHON SAPSFORD AND QUENTIN HARDY STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPANESE STOCKS ARE IN A SICKENING PLUNGE AND FEARS ARE GROWING THAT THE GOVERNMENT WILL BE UNABLE TO SUPPORT SHARE PRICES OR REVIVE THE ECONOMY THE BENCHMARK NIKKEI STOCK AVERAGE CLOSED AT 1812571 TUESDAY DOWN 49945 POINTS OR 27 VOLUME WAS ESTIMATED AT 320 MILLION SHARES UP FROM 2423 MILLION SHARES MONDAY LOSERS SWAMPED GAINERS 937 TO 100 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES PLUNGED 3905 POINTS OR 25 TO 154476 IT WAS A NEARPANIC SITUATION SAID MASANARI HOSHINA A SALESMAN AT COSMO SECURITIES CO SOME PEOPLE ARE DECIDING TO GET OUT OF THE MARKET ALTOGETHER ON WEDNESDAY MORNING STOCK PRICES REBOUNDED MODERATELY AS TRADERS BOUGHT BACK SHORT POSITIONS BUT FEW SAW THIS DEVELOPMENT AS A MAJOR REVERSAL OF THE OVERALL DOWNWARD TREND AT THE CLOSE OF THE MORNING SESSION THE NIKKEI STOOD AT 1819732 UP 7161 POINTS THROUGH THE CLOSE ON TUESDAY THE NIKKEI HAD PLUMMETED 2184 POINTS OR 108 DURING THE PAST 10 TRADING SESSIONS THERE HASN'T BEEN A DROP LIKE THAT IN TOKYO SINCE JUNE 1992 WHICH IGNITED A SELLOFF THAT ENDED ONLY AFTER MASSIVE GOVERNMENT INTERVENTION INCLUDING TRILLIONS OF YEN SPENT TO PROP UP STOCK PRICES BUT THIS TIME THERE'S EVIDENCE THAT THE GOVERNMENT ISN'T DOING ANYTHING EXTRAORDINARY TO HELP AND THAT'S WHAT HAS INVESTORS SO NERVOUS TUESDAY'S SHARP FALL STARTED WITH UNCONFIRMED REPORTS THAT PUBLIC PENSION FUNDS THE GOVERNMENT'S MAIN TOOL FOR SUPPORTING STOCK PRICES MAY BE RUNNING A DEFICIT BECAUSE OF FALLING SHARE VALUES THAT LED SOME INVESTORS TO CONCLUDE THAT THE GOVERNMENT WAS UNWILLING TO SPEN ANY MORE MONEY ON STOCKS PARTICULARLY SINCE PENSION FUNDS HAVEN'T BEEN SEEN IN THE MARKET IN RECENT DAYS THERE'S A FEAR THAT THERE WON'T BE MONEY FOR STOCKS SAID ALAN LIVSEY STRATEGIST AT KLEINWORT BENSON INTERNATIONAL INC WE'RE GETTING TO A POINT WHERE THIS YEAR IS A WRITEOFF HE SAID WITH A POSSIBILITY THAT THE NIKKEI COULD MOVE BELOW 17000 BEFORE IT RECOVERS WHEN IT SETTLES DOWN PEOPLE WILL THINK ABOUT BUYING MR LIVSEY SAID BUT WHEN IT FALLS LIKE THIS EVERYONE IS PARALYZED SHORT OF A GOVERNMENTSPONSORED BOOST JAPANESE STOCK PRICES ARE AT THE MERCY OF ECONOMIC FUNDAMENTALS AND THE FUNDAMENTALS AREN'T ENCOURAGING DESPITE REPEATED GOVERNMENT ATTEMPTS TO STIMULATE GROWTH ON TUESDAY JAPAN'S ECONOMIC PLANNING AGENCY RELEASED ITS MONTHLY ECONOMIC REPORT WHICH SAID THAT AN UNUSUALLY COLD SUMMER AND A STRONG YEN HAD HINDERED JAPAN'S ECONOMIC RECOVERY THE GOVERNMENT HAS ANNOUNCED ECONOMIC STIMULUS MEASURES WORTH SOME 30 TRILLION YEN 278 BILLION DURING THE PAST 15 MONTHS WITH LITTLE TO SHOW FOR ITS EFFORTS LAWMAKERS HAVE BEEN EXPECTED TO PASS A STIMULATORY INCOME TAX CUT OF PERHAPS FIVE TRILLION YEN BUT SQUABBLES ABOUT POLITICAL REFORM IN JAPAN MAY SLOW ITS PASSAGE THE MARKET ALSO TOOK LUMPS FROM STOCKFUTURES ARBITRAGE SELLING AS LARGE INSTITUTIONAL PLAYERS MOVE OUT OF THE NIKKEI FUTURES AHEAD OF A NEW STOCK INDEX FUTURE WHICH CONTAINS 70 FEWER STOCKS THAN ARE CURRENTLY CONTAINED IN THE NIKKEI THE ARBITRAGE SELLING MAY BE PARTICULARLY BAD ON FRIDAY WHEN A NIKKEI STOCKDERIVATIVES CONTRACT EXPIRES WITH LITTLE SIGN OF A TURNAROUND IN THE ECONOMY TRADERS SAY INDIVIDUAL JAPANESE INVESTORS ARE PARTICULARLY NERVOUS ABOUT THE MARKET SELLERS WERE ESPECIALLY HARD ON EAST JAPAN RAILWAY OR JR EAST AS IT'S COMMONLY KNOWN A STOCK LARGELY OWNED BY INDIVIDUAL JAPANESE JR EAST IS PART OF A FORMER GOVERNMENT MONOPOLY THAT WENT PUBLIC TWO WEEKS AGO JR EAST WENT PUBLIC AT 380000 YEN A SHARE AND ENDED A FEVERISH FIRST DAY'S TRADING AT 600000 YEN DESPITE A DROP IN THE OVERALL MARKET BUT THEN THE COMPANY RELEASED ADDITIONAL SHARES INTO THE MARKET AND THE RAILWAY'S SHARE PRICE HAS FALLEN IN ALMOST EVERY SESSION SINCE TO THE DISMAY OF INDIVIDUALS WHO BOUGHT THE STOCK JR EAST SHARES CLOSED TUESDAY AT 451000 YEN A SHARE DOWN 28000 YEN REGULATORS HAD HOPED THE JR EAST PRIVATIZATION WOULD ACTUALLY BRING MORE INVESTORS INTO THE STOCK MARKET INSTEAD JR EAST IS THE TRIGGER POINT SAID MR HOSHINA OF COSMO SECURITIES IT'S TAKING MONEY OUT OF THE MARKET ANOTHER KEY STOCK BATTERED TUESDAY WAS NIPPON TELEGRAPH & TELEPHONE ANOTHER GOVERNMENT COMPANY MEANT TO EXCITE INDIVIDUAL INVESTORS IT WENT PUBLIC IN 1986 WITH SIMILARLY DIRE CONSEQUENCES FOR THE MARKET NTT THE MOST WIDELY HELD STOCK IN JAPAN FINISHED TUESDAY AT 763000 YEN A SHARE DOWN 36000 YEN ENDING A SIXSESSION LOSING STREAK LONDON STOCKS ROSE BAILED OUT BY A US MARKET RALLY ON SURPRISINGLY POSITIVE INFLATION DATA WHICH SPARKED SOLID GAINS ON SEVERAL OTHER BOURSES FRANKFURT PRICES CLOSED BROADLY HIGHER THOUGH TRADING WAS THIN AND CAUTIOUS FOLLOWING THE MARKET'S 4 LOSS OVER THE PREVIOUS FOUR SESSIONS PARIS STOCKS RALLIED ON THE FAVORABLE US ECONOMIC NEWS AND ZURICH PRICES SOARED ON FACTORS POSITIVE FOR EQUITIES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11023 DOWN 078 REFLECTING LOWER ASIA/PACIFIC MARKETS AND HIGHER AMERICAN AND EUROPEAN MARKETS AIR FREIGHT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13619 UP 253 OR 19 WITH PITTSTON SERVICES OF THE US POSTING A 65 GAIN IN ITS LOCAL CURRENCY FISHING STOCKS TRAILED AT 7506 DOWN 261 OR 34 WITH NIPPON SUISAN OF JAPAN SLIDING 48 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 184 POINTS TO 30960 THE FT 30STOCK INDEX GAINED 140 POINTS TO 23393 VOLUME WAS 7755 MILLION SHARES UP SMARTLY FROM 5577 MILLION SHARES A DAY EARLIER AFTER OPENING HESITANTLY THE 100STOCK BAROMOTER MANAGED A 14POINT ADVANCE THAT EVAPORATED BY MIDDAY THE AFTERNOON RALLY WAS TRIGGERED BY THE US GOVERNMENT REPORT OF AN UNEXPECTED 02 DROP IN PRODUCER PRICES LAST MONTH WHEN A 03 INCREASE HAD BEEN FORECAST THIS DEFLATED INFLATIONARY PRESSURES AS AN ISSUE IN THE US ECONOMIC RECOVERY AND PROMPTED BIG EARLY GAINS FOR US STOCKS THE LONDON MARKET'S RESULTING GAINS WERE BROADLY BASED IN FRANKFURT THE DAX 30STOCK INDEX ROSE 1202 POINTS TO 202283 HESITANCY IN THE MARKET WAS ATTRIBUTED TO HIGHER INTEREST RATES ON US BONDS AND THE IMPLICATIONS FOR GERMANY'S MONETARY POLICY AND EQUITY MARKET HIGHER US RATES COULD UNDERMINE LIQUIDITY TO BOOST GERMAN EQUITIES AND POSTPONE FURTHER GERMAN RATE CUTS IN PARIS PRICES JUMPED 14 AFTER A LATE BOOST FROM THE US RALLY IN STOCKS AND BONDS LINKED TO THE PRODUCERPRICE DATA THIS REPORT ALSO GAVE AMSTERDAM STOCKS A LATE LIFT REVERSING A WEAKER TREND TO LEAVE PRICES MIXED TO FIRMER SHARES ALSO FOUND SUPPORT FROM STRONGER DUTCH BONDS AND A RECOVERY OF THE DOLLAR IN STOCKHOLM SHARES REBOUNDED TO CLOSE LITTLE CHANGED AFTER THE WEAKNESS WAS REVERSED ON THE US INFLATION REPORT AS US INTEREST RATES DROPPED THIS DISPELLED FEARS IN SWEDEN THAT RISING US RATES WOULD TOUCH OFF A EUROPEAN EQUITY MARKETS DECLINE IN MILAN PRICES DROPPED ON A SELLING WAVE OF TELECOMMUNICATIONS STOCKS THAT FOLLOWED REPORTS OF A POSSIBLE LONGDISTANCE SERVICE AGREEMENT BETWEEN US GERMAN AND FRENCH TELECOMMUNICATIONS CONCERNS AND OF ITALY'S DOMESTIC PHONE COMPANY POSSIBLY BEING DENIED COMPENSATION FOR GIVING UP ITS MONOPOLY ON CELLULAR TELEPHONES A SECOND CELLULAR PHONE LICENSE COULD BE AWARDED NEXT YEAR IN ZURICH STOCKS RALLIED 19 IN HEAVY TRADING EVEN AFTER LATE PROFITTAKING LIMITED SOME GAINS SIGNS OF FURTHER DECLINES IN LENDING RATES COMBINED WITH DECLINING INFLATION ENCOURAGED INVESTMENTS IN SWISS EQUITIES IN BRUSSELS EQUITIES SCORED BROAD GAINS PARTLY FROM COVERING DERIVATIVES POSITIONS AND FROM WALL STREET'S EARLY STRENGTH BUT INVESTORS REMAINED CAUTIOUS PARTICULARLY BECAUSE OF BELGIAN GOVERNMENT MEASURES TO CLEAN UP PUBLIC FINANCES IN SYDNEY DESPITE STRONG BUYING IN MORNING DEALINGS SHARE PRICES CLOSED MOSTLY WEAKER MARKING THE SIXTH CONSECUTIVE DECLINE ATTRIBUTED MOSTLY TO THE TOKYO MARKET'S NOSE DIVE AND TO SOFTNESS IN THE AUSTRALIAN DOLLAR IN HONG KONG STOCKS FELL ALMOST 1 AFTER SWINGING IN A BROAD RANGE ON VOLATILE FUTURES TRADING AMID A LACK OF FRESH ECONOMIC AND POLITICAL DEVELOPMENTS STOCK PRICES WERE HURT BY MAJOR PLAYERS HEDGING AGAINST THEIR BETS ON THE FUTURES MARKET IN SINGAPORE EQUITIES WERE MIXED TO LOWER IN JITTERY DEALINGS FOLLOWING STEEP LOSSES IN THE BROADER MARKET IN THE PREVIOUS TWO SESSIONS WHILE IN KUALA LUMPUR PRICES REBOUNDED FROM THEIR TWODAY 75 SLIDE AS BARGAINHUNTERS PICKED OVER THE MARKET BUT THE REBOUND WAS MUTED BY LATE SELLING ON PROFITTAKING AND DUMPING SHAKY SHORTTERM POSITIONS IN TAIPEI SHARE PRICES FELL FOR THE FIFTH CONSECUTIVE SESSION BECAUSE OF POLITICAL UNCERTAINTY IN TAIWAN AHEAD OF NOV 27 LOCAL ELECTIONS IN MANILA SHARES FELL EXTENDING THE MARKET'S CORRECTION TO FOUR SESSIONS IN A ROW BUT IN WELLINGTON PRICES REBOUNDED STRONGLY DESPITE SOME CONFUSION BECAUSE OF NEW ZEALAND'S POLITICAL STALEMATE FOLLOWING WEEKEND ELECTIONS AND IN SEOUL STOCKS HIT A THREEYEAR HIGH AS INSTITUTIONAL INVESTORS WENT ON A BUYING SPREE PROMPTING SMALL INVESTORS TO FOLLOW SUIT THE BIGGEST WINNERS WERE LARGECAPITALIZATION BLUE CHIPS 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 9311100034 931110 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN TO PERSUADE THE US TO DROP TRADE THREATS INDONESIA RAISED THE MINIMUM WAGE FOR JAKARTA WORKERS 29 TO 2 A DAY STARTING NEXT YEAR TOLD STATES TO ACT SIMILARLY AND SENT A DELEGATION TO THE US THE MOVES ARE PART OF A CAMPAIGN TO OVERCOME US CRITICISMS OF INDONESIA'S LABOR RECORD DIPLOMATS SAID THE US HAS THREATENED TO WITHDRAW PRIVILEGES IN FEBRUARY UNDER THE GENERALIZED SYSTEM OF PREFERENCES IF INDONESIA DOESN'T IMPROVE CONDITIONS SUCH AS LOW WAGES CHILD LABOR LABOR RIGHTS VIOLATIONS AND LACK OF INDEPENDENT TRADE UNIONS FOR ITS WORK FORCE OF 80 MILLION PEOPLE UNDER THE GSP THE US ASSESSES WHETHER COUNTRIES ELIGIBLE FOR TARIFF BREAKS ON EXPORTS ARE TRYING TO BRING LABOR POLICIES IN LINE WITH GLOBAL STANDARDS JAPAN PLANS TO PROCEED WITH BUILDING A FASTBREEDER ATOMIC REACTOR AND REPROCESSING SPENT NUCLEAR FUEL THE GOVERNMENT SAID IN AN ANNUAL REPORT ON ITS NUCLEAR PROGRAM JAPAN HEAVILY DEPENDENT ON OVERSEAS ENERGY SOURCES IS THE ONLY MAJOR INDUSTRIALIZED NATION THAT PLANS TO RELY ON HIGHLY RADIOACTIVE PLUTONIUM AND FASTBREEDER REACTORS TO GENERATE ELECTRICITY THESE REACTORS PRODUCE MORE PLUTONIUM THAN THEY CONSUME AND OFFER AN INEXHAUSTIBLE POWER SUPPLY BUT OTHER NATIONS HAVE ABANDONED THEM PARTLY BECAUSE OF HAZARDS AND HIGH COSTS JAPAN'S FIRST FASTBREEDER REACTOR IN MONJU IS TO START UP IN APRIL INFECTIOUS DISEASES AND OTHER ILLNESSES ARE SPREADING IN RUSSIA BECAUSE THE HEALTH SYSTEM IS COLLAPSING MOSCOW NEWSPAPERS SAID EPIDEMICS OF DIPHTHERIA TYPHOID MEASLES AND OTHER DISEASES ARE COMMON IN PARTS OF RUSSIA BECAUSE OF LOWER LIVING STANDARDS A LACK OF MONEY TO PROVIDE PROPER MEDICAL CARE AND UNSANITARY CONDITIONS THE RATE OF DEATHS 122 FOR EVERY 1000 PEOPLE LAST YEAR COULD DOUBLE BY 1998 WITHOUT CORRECTIVE ACTION DIPHTHERIA IS A GROWING THREAT CASES IN THE FIRST NINE MONTHS MORE THAN TRIPLED TO 7628 FROM A YEAR EARLIER AND CAUSED 257 DEATHS SINGAPORE IMPOSED CURBS ON NEW PHYSICIANS TO PREVENT EXCESSIVE DEMAND FOR MEDICAL SERVICES THAT COULD INFLATE HEALTH COSTS AND UNDERMINE RAPID ECONOMIC GROWTH THE GOVERNMENT REDUCED TO 15 FROM 40 A YEAR THE MAXIMUM REGISTRATIONS OF FOREIGN DOCTORS SAID IT WOULD FREEZE AT 150 A YEAR THE ADMISSIONS OF NATIONAL UNIVERSITY MEDICAL STUDENTS AND SLASHED TO 28 FROM 176 THE FOREIGN MEDICAL SCHOOLS SINGAPOREANS MAY ATTEND IF THEY WANT TO RETURN TO PRACTICE MEDICINE ENGLISHSPEAKING CARIBBEAN NATIONS AND THE DOMINICAN REPUBLIC NEXT YEAR WILL FORM A GROUP NAMED THE ASSOCIATION OF CARIBBEAN STATES THE CARIBBEAN COMMUNITY KNOWN AS CARICOM SAID COUNTRIES IN THE REGION CAN'T REMAIN ISOLATED AS HUGE TRADING BLOCS ARE BEING CREATED ELSEWHERE OTHER CARIBBEAN COUNTRIES MAY JOIN THE NEW GROUP HAITI WILL BE INELIGIBLE UNTIL ITS POLITICAL CRISIS IS RESOLVED CUBA HAS BEEN A CARICOM OBSERVER BUT ISN'T A MEMBER AMID THE SCANDAL INVOLVING TAINTED BLOOD IN GERMANY INVESTIGATORS FOUND TWO BATCHES INFECTED WITH HIV THE AIDSCAUSING VIRUS SCIENTISTS CHECKED 2000 BLOOD BATCHES AMONG 25000 CONFISCATED AT UB PLASMA OF KOBLENZ MANY GERMANS WHO HAVE RECEIVED TRANSFUSIONS WERE PANICKED BY NEWS THAT THE COMPANY MAY HAVE FAILED FOR MORE THAN A DECADE TO SCREEN PRODUCTS SUPPLIED TO HOSPITALS AND OTHER CLIENTS HEALTH OFFICIALS HAVE URGED BLOOD TESTS BUT THE GERMAN RED CROSS CAUTIONED AGAINST HYSTERIA SAYING THAT THE PROPORTION OF BLOOD PRODUCTS PROCESSED BY UB PLASMA IS SMALL AND THAT THE PROBABILITY OF ANY INDIVIDUAL HAVING CONTRACTED HIV IS TINY RUSSIA'S ECONOMIC REFORMS WILL CAUSE A FINANCIAL SHOCK TO OTHER FORMER SOVIET STATES WHICH WILL NEED STEPPEDUP FINANCIAL AID FROM THE WEST AND RUSSIA ITSELF INTERNATIONAL MONETARY SOURCES SAID AN UNPUBLISHED STUDY BY THE INTERNATIONAL MONETARY FUND ESTIMATES THE REPUBLICS WILL LOSE 155 BILLION IN A YEAR AS RUSSIA CUTS OFF CHEAP CREDITS AND SUBSIDIZED EXPORTS TO THEM TO MAKE THEIR ECONOMIES MORE EFFICIENT THE REPUBLICS WILL NEED EXTRA FOREIGN FINANCING BUT SOME NOTABLY UKRAINE AREN'T PURSUING REFORMS AND CAPITAL IS FLEEING WESTERN NATIONS HAVE BUDGETED SMALL AMOUNTS OF AID CASHSTRAPPED RUSSIA HAS SIGNALED WILLINGNESS TO HELP COMPENSATE THE REPUBLICS FOR LOSSES CAUSED BY ITS REFORMS THE IMF CALCULATED THAT REPUBLICS COULD GET AN ADDITIONAL 1 BILLION TO 3 BILLION NEXT YEAR FROM ABROAD THE IMF AND WESTERN NATIONS DON'T MUCH FAVOR RUSSIA'S IDEA TO RECHANNEL THE WEST'S PROMISED CURRENCYSTABILIZATION AID OF 6 BILLION TO THE OTHER REPUBLICS AND TO KICK IN 1 BILLION OF ITS OWN WHEN RESIDENTS OF FORMER SOVIET REPUBLICS VISIT MOSCOW THEY MUST REGISTER WITH POLICE AND PAY A DAILY FEE STARTING MONDAY THE RUSSIAN CAPITAL STILL REQUIRES RESIDENCY PERMITS ALSO AIMED AT COMBATING CRIMINALS AND DERELICTS AND MAKING IT EASIER TO EXPEL UNDESIRABLES FOR WINNING AN OLYMPIC GOLD MEDAL SINGAPORE WILL PAY EACH OF ITS ATHLETES 628000 AND EACH TEAM 125 MILLION TENFOLD INCREASES FROM CURRENT INCENTIVES SPONSORED BY A SOFTDRINK COMPANY TO ENCOURAGE COMPETING NO SINGAPOREAN ATHLETE HAS EVER WON THE GAMES' TOP MEDAL 9311100033 931110 ENTERPRISE ENTREPRENEURS THRIVE BY HELPING BIG FIRMS SLASH COSTS NICHES RANGE FROM MONITORING COPIER USE TO FINDING DUPLICATE PAYMENTS BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL IN THE JOHN GRISHAM BESTSELLER THE FIRM EVIL LAWYERS REALIZE THAT THE HERO IS SPYING ON THEM BECAUSE HE HEAVILY USES AN OFFICE PHOTOCOPIER IN REAL LIFE THOUGH MANY MAJOR CORPORATIONS HAVE LITTLE IDEA HOW MUCH THEIR EMPLOYEES USE COMPANY COPYING MACHINES SUCH IGNORANCE SPELLS OPPORTUNITY FOR EQUITRAC CORP A COSTRECOVERY COMPANY IN CORAL GABLES FLA EQUITRAC MOSTLY HELPS CLIENTS TO USE PHOTOCOPIERS AND OTHER OFFICE EQUIPMENT MORE EFFICIENTLY EQUITRAC IS AMONG THE GROWING NUMBER OF SMALL COMPANIES THAT OWE THEIR PROSPERITY TO FINDING VERY SPECIALIZED OPPORTUNITIES IN CORPORATE AMERICA'S ACCELERATED DRIVE TO SLASH COSTS SUCH SPECIALIST ENTREPRENEURS SOMETIMES FOCUS ON AN AREA SO NARROW THAT A BIG COMPANY HAS GIVEN LITTLE THOUGHT TO IT BUT THE SAVINGS CAN BE SURPRISINGLY LARGE EQUITRAC FOR EXAMPLE INSTALLS COMPUTERIZED CONTROLS THAT ENABLE COMPANIES TO KNOW EXACTLY HOW MANY PHOTOCOPIES EACH EMPLOYEE MAKES THE 16YEAROLD CONCERN BEGAN BY SELLING THIS SERVICE TO LAW FIRMS WHICH CARED MORE ABOUT CHARGING THEIR CLIENTS FOR EVERY PAGE THAN PINCHING PENNIES IN RECENT YEARS HOWEVER EQUITRAC HAS PURSUED LARGE INDUSTRIAL COMPANIES WHOSE MOTIVE IS COST CONTAINMENT THE MERE EXISTENCE OF THE CONTROLS SUCH AS IDENTIFICATION NUMBERS FOR EACH INDIVIDUAL USER GIVES EMPLOYEES A GREATER SENSE OF PERSONAL RESPONSIBILITY AND USUALLY HELPS TO CUT COPIER VOLUME BY 10 TO 15 EQUITRAC SAYS THE COMPANY SAYS IT ALSO ENSURES THAT CLIENTS DON'T PAY FOR MORE COPYING CAPACITY THAN NEEDED EQUITRAC EXECUTIVES SAY BUSINESS HAS NEVER BEEN STRONGER IT REPORTED REVENUE OF 275 MILLION FOR THE FISCAL YEAR ENDED FEB 28 UP 16 FROM THE PREVIOUS YEAR GEORGE P WILSON PRESIDENT SAYS EQUITRAC HAS BARELY BEGUN TO PENETRATE THE BIG MARKET OF BIG BUSINESSES EAGER TO SAVE MONEY WITH SLOWED SALES GROWTH IN A SLUGGISH ECONOMY BIG COMPANIES ARE ENLISTING COSTCONTROL HELP FROM SOURCES BIG AND SMALL A LOT OF PEOPLE ARE HELPING COMPANIES REDUCE OVERHEAD AND FIND EFFICIENCIES NOTES DANIEL GARNER AN ERNST & YOUNG CONSULTANT IN DALLAS IT'S NOT JUST A SMALLCOMPANY PHENOMENON STILL HE AND OTHER SMALLBUSINESS EXPERTS NOTE MANY NICHE PLAYERS ARE MINING A BROAD POTENTIAL MARKET FOR THEIR COSTCUTTING SERVICES CONSIDER FIELDS & ASSOCIATES A 10YEAROLD BURLINGAME CALIF COMPANY WITH MORE THAN ONE COSTSAVING ANGLE FIELDS FERRETS OUT THE DUPLICATE PAYMENTS SOMETIMES MADE BY BIGCOMPANY BUREAUCRACIES IT ALSO SCRUTINIZES TAX ACCOUNTS TO FIND OVERPAYMENTS AND HELPS CLIENTS TO SURVIVE TAX AUDITS FIELDS SAYS IT HAD ONE BIG CORPORATE CLIENT THAT HAD PAID THE SAME 40000 BILL TWICE WITH ONE 80000 CHECK SUCH ERRORS OCCUR FOR NUMEROUS REASONS FIELDS OFFICIALS SAY MORE THINGS ARE BEING DONE BY FEWER PEOPLE SAYS ROBERT J FIELDS THE COMPANY'S PRESIDENT THERE'S A HIGHER LEVEL OF POTENTIAL ERROR INTEL CORP A BIG COMPUTERCHIP MAKER IN SANTA CLARA CALIF SAYS THAT IT HAS BENEFITED FROM FIELDS'S SPECIALIZED APPROACH TO CATCHING ERRORS THE FIELDS PEOPLE KNOW EXACTLY WHAT TO LOOK FOR THEY CAN DO THE JOB FOR US MORE EFFICIENTLY THAN WE COULD DO IT SAYS MARK A MALONEY TAX MANAGER OF INTEL HE SAYS FIELDS HAS RECOVERED ABOUT 1 MILLION FOR INTEL DURING THE PAST TWO YEARS IN EXCHANGE FOR PART OF THE SAVINGS WHEN THE SAVINGS REACH 15 MILLION INTEL WILL HAVE PAID ABOUT 30 OR 450000 MR MALONEY SAYS FIELDS SAYS IT USUALLY KEEPS 25 TO 50 OF RECOVERED AMOUNTS FROM TIME TO TIME MR MALONEY ADDS AS MANY AS SIX OR EIGHT FIELDS EMPLOYEES PORE OVER INTEL'S RECORDS INTENSELY FOR WEEKS AT A TIME INTEL BELIEVES THAT HIRING ITS OWN PERMANENT SPECIALISTS TO DO THE SAME WORK WOULD BE MORE COSTLY IN THE LONG RUN HE SAYS MR FIELDS SAYS HE GOT THE IDEA FOR THE BUSINESS IN 1972 WHEN HE WAS PERFORMING CONSULTING WORK FOR A SANTA BARBARA CALIF HOSPITAL AND NOTICED DISCREPANCIES IN BILLS FOR UPHOLSTERY SERVICES STATE SALES TAXES HAD BEEN ADDED TO SOME BILLS BUT NOT OTHERS AFTER MR FIELDS DETERMINED THAT THE SERVICES WEREN'T TAXABLE THE HOSPITAL RECOVERED A SMALL AMOUNT AND THE CONSULTANT HAD DISCOVERED A BUSINESS NICHE MR FIELDS SAYS HE BENEFITS FROM THE INCREASING COMPLEXITY OF TAX LAWS AND FROM DOWNSIZING EFFORTS THAT LEAVE MANY BIG COMPANIES WITHOUT INHOUSE EXPERTISE IN CERTAIN AREAS SUCH AS STATE TAXATION TO CUT COSTS IN THESE AREAS MAJOR CORPORATIONS INCREASINGLY SEEK HELP FROM OUTSIDE CONSULTANTS MR FIELDS SAYS FIELDS WHICH HAS 20 EMPLOYEES IN FOUR STATES HAD REVENUE OF ABOUT 2 MILLION LAST YEAR ACCORDING TO MR FIELDS THE COMPANY SAYS IT EXPECTS ABOUT THE SAME REVENUE THIS YEAR WHILE SOME COSTCUTTING ENTREPRENEURS SUCH AS MR FIELDS STICK TO A FEW SPECIALIZED AREAS OTHERS CLAIM THEY CAN FIND SAVINGS IN ALMOST ANY ASPECT OF A BIG COMPANY'S PURCHASING PROGRAM THAT'S THE APPROACH TAKEN BY ERIC S BERRY WHO FOUNDED PURCHASING GROUP INC IN JENKINTOWN PA LAST YEAR TO ASSIST BIG COMPANIES WITH PURCHASING MR BERRY A FORMER EXECUTIVE WITH AN INDUSTRIALSUPPLIES DISTRIBUTOR SAYS PURCHASING DEPARTMENTS USUALLY ARE TOO BOGGED DOWN IN DAYTODAY ACTIVITY LARGELY INVOLVING DELIVERY PROBLEMS TO IDENTIFY NEW WAYS TO SAVE MONEY MR BERRY SAYS HE HELPED HIS FIRST CLIENT A MAJOR OIL COMPANY TO CONSOLIDATE FIVE LIQUIDNITROGEN CONTRACTS INTO ONEAT A PROJECTED SAVINGS OF 12 OR MORE THAN 1 MILLION OVER FIVE YEARS THE CONSOLIDATION WAS AN OBVIOUS THING TO DO MR BERRY SAYS BUT IT TOOK AN OUTSIDER WITH FRESH EYES TO IDENTIFY THE POSSIBLE SAVINGS WE ARE OBJECTIVE WITHOUT ALLOWING EMOTION TO ENTER INTO OUR DECISIONS HE SAYS PURCHASING GROUP NOW HAS ABOUT 10 CLIENTS MOSTLY LARGE COMPANIES AND SAYS IT EXPECTS REVENUE OF 1 MILLION TO 2 MILLION THIS YEAR THE COMPANY EMPLOYS FIVE WORKERS AND MR BERRY SAYS HE WANTS TO HIRE TWO OR THREE MORE 9311100032 931110 TUESDAY'S MARKETS STOCK PRICES END MIXED BONDS GAIN TAME INFLATION DATA SEND RATES FALLING THE DOLLAR ADVANCES BY ANITA RAGHAVAN AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL STOCKS ENDED MIXED AFTER AN UNEXPECTEDLY TAME INFLATION REPORT SENT INTEREST RATES TUMBLING AND HELPED IGNITE AN EARLY RALLY IN STOCKS THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE FELL 783 POINTS TO 364007 STANDARD & POOR'S 500STOCK INDEX EDGED UP 012 TO 46033 AND THE NASDAQ COMPOSITE INDEX JUMPED 363 TO 76984 NEWS THAT PRODUCER PRICES ACTUALLY FELL IN OCTOBER INSTEAD OF RISING AS MANY ECONOMISTS EXPECTED UNLEASHED A RALLY IN THE BOND MARKET THAT DROVE THE YIELD ON THE TREASURY'S 30YEAR BOND SHARPLY LOWER FOR THE FIRST TIME IN MORE THAN A WEEK THE REPORT WHICH SHOWED THAT PRODUCER PRICES DROPPED 02 LAST MONTH ASSUAGED FEARS THAT THE RECENT PICKUP IN THE ECONOMY IS ACCELERATING INFLATIONARY PRESSURES THE PPI NUMBERS WERE ABSOLUTELY STUNNING SAID JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG IF YOU LOOK AT THE BROAD CONSTELLATION OF PRICES A LOT OF THEM WERE FLAT OR DOWN THOUGH THE 30YEAR BOND SHOT UP MORE THAN A POINT OR OVER 10 FOR EACH 1000 FACE AMOUNT IN THE MORNING IT RETREATED IN THE AFTERNOON AFTER LACKLUSTER DEMAND EMERGED FOR THE GOVERNMENT'S THREEYEAR NOTE AUCTION ALSO DEPRESSING PRICES WAS A REPORT FROM JOHNSON REDBOOK THAT SHOWED RETAIL SALES CLIMBED A ROBUST 17 DURING THE FIRST WEEK OF NOVEMBER COMPARED WITH ALL OF OCTOBER MR LIRO SAID YESTERDAY'S PPI REPORT WAS SO GOOD THAT IT'S GOING TO TAKE AWAY THE STING FROM THE CONSUMER PRICE REPORT DUE TODAY MEANWHILE THE BETTERTHANEXPECTED INFLATION NEWS HELPED TO BOOST EUROPE'S BIGGER STOCK MARKETS SWISS STOCKS JUMPED 19 FRENCH SHARES 14 AND THOSE IN BRITAIN AND GERMANY 06 EACH IT'S THE DOG THAT DIDN'T BARK SAID TIM O'DELL GLOBAL STRATEGIST AT UBS LTD IN LONDON FEARS THAT US INFLATION WAS ABOUT TO TAKE OFF WERE OVERWROUGHT LAST WEEK EUROPEAN STOCKS TUMBLED ON CONCERNS THAT HIGHER US INTEREST RATES WOULD PROMPT AMERICANS TO PULL BACK FROM INVESTING ABROAD WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 078 TO 11023 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 275863560 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1195 ISSUES ROSE AND 900 FELL BOND PRICES GAINED THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE 5/8 POINT OR 625 FOR EACH 1000 FACE AMOUNT TO YIELD 614 THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16928 MARKS AND 10793 YEN COMPARED WITH 16853 MARKS AND 10783 MONDAY 9311100031 931110 MARKETING & MEDIA VIACOM BROADENS ANTITRUST ATTACK ON QVC PARTNERS BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BATTLING FOR CONTROL OF PARAMOUNT COMMUNICATIONS INC VIACOM INC ESCALATED A LEGAL ATTACK ON TELECOMMUNICATIONS INC AND OTHER BACKERS OF RIVAL BIDDER QVC NETWORK INC MEANWHILE REPRESENTATIVES OF TCI LIBERTY MEDIA CORP AND OTHERS IN THE QVC CAMP REMAINED LOCKED IN TALKS WITH TOP ANTITRUST OFFICIALS OF THE FEDERAL TRADE COMMISSION AND JUSTICE DEPARTMENT TO SETTLE SOME OF THE VERY ISSUES THAT VIACOM FIRST RAISED IN ITS ANTITRUST LAWSUIT IN SEPTEMBER QVC CHAIRMAN BARRY DILLER SAID AT AN INDUSTRY FORUM IN WASHINGTON THAT HE EXPECTED A SETTLEMENT WITH THE FEDERAL OFFICIALS TODAY OR TOMORROW ABOUT THE ROLE OF TCI THE NATION'S LARGEST CABLETELEVISION OPERATOR IN THE PARAMOUNT BID LIBERTY WHICH IS TO BE ACQUIRED BY TCI OWNS A 22 STAKE IN QVC AND REGULATORS ARE EXPECTED TO RULE ON HOW FAR LIBERTY MUST DISTANCE ITSELF FROM QVC TO PERMIT THE HOMESHOPPING COMPANY TO BUY PARAMOUNT WITHOUT VIOLATING ANTITRUST LAWS THE ANTITRUST ISSUES MUST BE RESOLVED BEFORE QVC CAN COMPLETE AN AGREEMENT FOR REGIONAL TELEPHONE GIANT BELLSOUTH CORP TO INVEST 15 BILLION IN QVC AND ITS PARAMOUNT OFFER BRINGING IN BELLSOUTH WILL ENABLE QVC TO RESPOND TO A SWEETENED 102 BILLION BID MADE OVER THE WEEKEND BY VIACOM QVC'S CASHANDSTOCK OFFER IS VALUED AT 96 BILLION PILING EVEN MORE ALLEGATIONS ON THE LAWSUIT IT FILED IN FEDERAL COURT HERE AGAINST TCI SIX WEEKS AGO VIACOM ADDED ANOTHER QVC SHAREHOLDER CABLETV COMPANY COMCAST CORP AS A DEFENDANT IN AN UNUSUAL LEGAL ACCUSATION FOR A TAKEOVER CONTEST VIACOM ALSO ACCUSED QVC'S BACKERS OF CONDUCT THAT FORCED VIACOM TO RAISE THE AMOUNT OF ITS OFFER FOR PARAMOUNT BY 2 BILLION IN THE AMENDED COMPLAINT VIACOM FURTHER ALLEGED THAT THE PROPOSED ACQUISITION OF TCI BY BELL ATLANTIC CORP IS PART OF THE ANTICOMPETITIVE CONDUCT QVC AND ITS PARTNERS HAVE DISMISSED VIACOM'S CHARGES AS FRIVOLOUS AND HAD NO IMMEDIATE RESPONSE TO THE NEW ALLEGATIONS YESTERDAY 9311100030 931110 INTERNATIONAL GM TO TRY TO SETTLE PART OF VW DISPUTE OUTSIDE COURTROOM BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT PRODDED BY A GERMAN JUDGE GENERAL MOTORS CORP AND VOLKSWAGEN AG AGREED TO TRY TO RESOLVE AT LEAST ONE OF THEIR LEGAL BATTLES OUT OF COURT IN A FRANKFURT APPELLATECOURT HEARING THE TWO AUTO GIANTS ACCEPTED THE COURT'S MEDIATION TO REACH A SETTLEMENT OVER GM'S EFFORT TO PREVENT FOR ONE YEAR SEVEN OF ITS FORMER EMPLOYEES FROM JOINING VW THE EMPLOYEES HAD DEFECTED EN MASSE TO FOLLOW GM'S PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA THIS DISPUTE OVER WHAT GM CHARACTERIZES AS AN UNFAIR SYSTEMATIC POACHING OF ITS EMPLOYEES AND WHAT VW CALLS A LEGITIMATE HIRING PROCESS IS SEPARATE FROM THE COMPANIES' FEUD OVER ALLEGED INDUSTRIAL ESPIONAGE BY MR LOPEZ AND HIS COLLEAGUES AN EVENTUAL SETTLEMENT IN THIS LABORLAW TIFF WOULD HAVE NO EFFECT ON THE CRIMINAL INVESTIGATIONS BY GERMAN PUBLIC PROSECUTORS AND THE US JUSTICE DEPARTMENT INTO GM'S ALLEGATIONS THAT MR LOPEZ ABSCONDED WITH SENSITIVE COMPANY INFORMATION WHEN HE JUMPED TO VW MR LOPEZ AND VW DENY THE ALLEGATIONS AFTER AROUND 3 1/2 HOURS OF CLOSEDDOOR DISCUSSIONS YESTERDAY FRANKFURT APPELLATE COURT JUDGE FRITZ TRAUB ANNOUNCED THAT GM AND VW HAD TAKEN SEVERAL STEPS TOWARD RESOLVING THE LABORLAW ISSUE HE IMPOSED A FRIDAY DEADLINE FOR THE COMPANIES TO IRON OUT THE DETAILS AND GET THE APPROVAL OF THEIR SUPERVISORY BOARDS IF THE COMPANIES AREN'T ABLE TO REACH A SETTLEMENT BY THEN THE MATTER WILL REVERT TO THE COURT WHICH WILL HAND DOWN A PRELIMINARY JUDGMENT ON DEC 16 JUDGE TRAUB SAID A FULL COURT HEARING WOULD TAKE PLACE IN JANUARY 9311100028 931110 BUSINESS BRIEF NATIONAL PRESTO INDUSTRIES INC DISAGREEMENT WITH KMART TO AFFECT SHIPMENTS IN '94 NATIONAL PRESTO INDUSTRIES INC SAID THAT DUE TO A DISAGREEMENT IT MAY NOT BE SHIPPING ANY OF ITS PRODUCTS TO KMART CORP IN 1994 THE EAU CLAIRE WIS MAKER OF PORTABLE ELECTRIC PRODUCTS AND HOUSEWARES SAID IT COULDN'T AGREE WITH KMART ON MODIFICATIONS OF TERMS AND CONDITIONS THAT AFFECT KMART'S NET COST A SPOKESWOMAN FOR KMART SAID THE RETAILER WHICH IS BASED IN TROY MICH WANTS A SMALLER QUANTITY OF PRESTO PRODUCTS IN ITS STORES PRESTO SAID KMART'S DECISION DOESN'T INVOLVE DELIVERY QUALITY OR OTHER MATTERS RELATED TO THE PRICING OF ITS PRODUCTS ACCORDING TO PRESTO KMART SALES REPRESENT AN ESTIMATED 10 OF ITS 1993 SALES VOLUME FOR THE FIRST NINE MONTHS OF 1993 PRESTO HAD SALES OF 613 MILLION PRESTO SAID THE ACTION WILL HAVE A MARGINAL IMPACT ON THE CURRENT YEAR 9311100027 931110 WHO'S NEWS AIRCURE ENVIRONMENTAL INC AIRCURE ENVIRONMENTAL INC ANNAPOLIS MD JAMES L RAINEY JR 63 YEARS OLD WAS ELECTED A DIRECTOR OF THIS AIRPOLLUTION CONTROL SYSTEMS MAKER FILLING A VACANCY ON THE FIVEMEMBER BOARD MR RAINEY IS FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FARMLAND INDUSTRIES INC AN AGRICULTURAL SUPPLY COOPERATIVE 9311100026 931110 WHO'S NEWS SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP NEW HAVEN CONN DONALD R SHASSIAN 38 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS TELECOMMUNICATIONS CONCERN EFFECTIVE DEC 1 THE POSITION HAS BEEN VACANT FOR ABOUT TWO YEARS MR SHASSIAN IS CURRENTLY A PARTNER WITH ARTHUR ANDERSEN & CO AND PARTNERINCHARGE OF THE ACCOUNTING FIRM'S TELECOMMUNICATIONSINDUSTRY PRACTICE FOR NORTH AMERICA 9311100025 931110 MARKETING BRIEF NEWS CORP FISCAL FIRSTQUARTER PROFIT ROSE 16 AS REVENUE FELL THE GLOBAL MEDIA AND ENTERTAINMENT COMPANY NEWS CORP REPORTED A 16 RISE IN FISCAL FIRSTQUARTER NET INCOME BUT REVENUE FELL SLIGHTLY FOR THE QUARTER ENDED SEPT 30 THE COMPANY BASED IN SYDNEY AUSTRALIA REPORTED NET INCOME OF 1641 MILLION OR 70 CENTS AN AMERICAN DEPOSITARY SHARE COMPARED WITH YEAREARLIER NET INCOME OF 1412 MILLION OR 70 CENTS AN AMERICAN DEPOSITARY SHARE THE RESULTS REFLECT 109 MILLION OF CHARGES MAINLY FOR UNREALIZED FOREIGNEXCHANGE LOSSES AT ANSETT TRANSPORT INDUSTRIES LTD AN AIRLINE 50OWNED BY NEWS CORP LAST YEAR'S RESULTS INCLUDED 163 MILLION OF ABNORMAL ITEMS THIS QUARTER'S PERSHARE EARNINGS REFLECT A SIGNIFICANT INCREASE IN SHARES OUTSTANDING TO 228 MILLION AMERICAN DEPOSITARY SHARES FROM 201 MILLION SHARES REVENUE FOR THE QUARTER WAS 186 BILLION COMPARED WITH 189 BILLION 9311100022 931110 INTERNATIONAL BRIEF REMYCOINTREAU SA FRENCH FIRM EXPECTS TO POST 20 RISE IN PROFIT FOR HALF REMYCOINTREAU SA SAID IT EXPECTS TO REPORT A 20 INCREASE IN PRETAX PROFIT FOR THE FISCAL FIRST HALF A YEAR EARLIER THE FRENCH SPIRITS GROUP HAD A PROFIT OF 104 MILLION FRANCS 177 MILLION REMYCOINTREAU SAID REVENUE FOR THE FIRST HALF ENDED IN SEPTEMBER ROSE 12 TO 26 BILLION FRANCS FROM 232 BILLION FRANCS THE TWO STRONGEST GAINS CAME FROM CHAMPAGNE AND COGNAC WHICH SHOWED GAINS OF 26 TO 11 BILLION FRANCS AND 22 TO 252 MILLION FRANCS RESPECTIVELY SALES OF LIQUEURS WINES AND SPIRITS WERE UP 25 TO 727 MILLION FRANCS REMYCOINTREAU SAID THE KRUG CHARLES HEIDSIECK AND PIPER HEIDSIECK BRANDS MAINTAINED PRICES REFLECTING A RECOVERY IN THE CHAMPAGNE BUSINESS NONGROUP SPIRITS SHOWED A 22 SALES INCREASE TO 5215 MILLION FRANCS AS SALES IN THE SECOND QUARTER REBOUNDED AFTER A 5 DECLINE IN THE FIRST QUARTER 9311100021 931110 LETTERS TO THE EDITOR WE AGREE POWER TO THE PEOPLE YOUR OCT 5 EDITORIAL POWER TO THE PEOPLE WAS TRUE TO FORM IN ITS HOSTILITY TO PUBLIC POWER AND THE FEDERAL POWER PROGRAM ITEM 1 TAXPAYERS OUGHT TO BE ALLOWED TO GET THEIR MONEY'S WORTH OUT OF THEIR INVESTMENT IN HOOVER DAM GRAND COOLEE AND OTHER FEDERAL DAMS IN FACT TAXPAYERS ARE GETTING BACK EVERY PENNY INVESTED IN THE FEDERAL POWER PROGRAM PLUS INTEREST THE SAME CAN'T BE SAID ABOUT MOST OTHER FEDERAL INVESTMENTS IN OUR NATION'S INFRASTRUCTURE ITEM 2 THE FEDERAL POWER PROGRAM CONSTITUTES A GIVEAWAY OF AT LEAST 2 BILLION WORTH OF ELECTRICITY EACH YEAR THERE IS NO GIVEAWAY POWER RATES ARE SET AS THEY ARE FOR EVERY PRIVATE AND PUBLIC UTILITY IN THE COUNTRY ON WHAT IT COSTS TO PRODUCE AND DELIVER THE ELECTRICITY YOUR 2 BILLION FIGURE APPARENTLY COMES FROM A DISCREDITED REPORT OF THE ENERGY INFORMATION ADMINISTRATION THE CONCLUSIONS OF WHICH WERE DISAVOWED BY THE NEWLY APPOINTED ADMINISTRATOR OF THE AGENCY ITEM 3 THE CHEAP POWER IS RESERVED FOR PREFERENCE CUSTOMERS' MEANING POLITICALLY CORRECT TOWNS WHERE THE LOCAL UTILITY HAPPENS TO BE OWNED EITHER BY A COOP OR THE MUNICIPAL GOVERNMENT IN FACT PREFERENCE IS JUST THAT A PREFERENCE OR A RIGHT OF FIRST REFUSAL NOT A RESERVATION ANOTHER FACT SUBSTANTIAL AMOUNTS OF FEDERAL POWER HAVE GONE AND CONTINUE TO GO TO INVESTOROWNED UTILITIES INDUSTRIAL CONCERNS STATE GOVERNMENTS MILITARY INSTALLATIONS AND OTHER ENTITIES INDEED THE FOUNDATION OF THE PREFERENCE PRINCIPLE TO FOSTER COMPETITION IN THE ELECTRIC UTILITY IS ONE YOU SHOULD APPLAUD NOT RIDICULE THE PRINCIPLE WORKS THERE IS MORE COMPETITION IN THE INDUSTRY BECAUSE OF IT AND ALL CONSUMERS HAVE REAPED THE BENEFITS ITEM 4 CHEAP POWER GOES TO SUBSIDIZE THE LIFESTYLES OF THE PLUSH BELTWAY SUBURBS OF VIRGINIA AND THE CASINOS OF LAS VEGAS NO FEDERAL POWER IS MARKETED IN THE SUBURBAN CITIES OF NORTHERN VIRGINIA EITHER INSIDE OR OUTSIDE THE BELTWAY AND ANY FEDERAL POWER LIGHTING THE CASINOS OF LAS VEGAS GOES THROUGH NEVADA POWER CO THE INVESTOROWNED UTILITY SERVING THAT CITY NOT ONE OF YOUR SOCALLED POLITICALLY CORRECT UTILITIES FOR WHOM IN YOUR VIEW ALL THIS SUBSIDIZED POWER IS RESERVED ITEM 5 BY FAR THE BIGGEST CHUNK OF THE SUBSIDY GOES TO NORTHERN CALIFORNIA WHERE IN PALO ALTO THEY'RE GETTING A FIVEMONTH HOLIDAY FROM HAVING TO PAY ANY ELECTRIC BILLS IN FACT THE PALO ALTO MUNICIPAL ELECTRICITY UTILITY HAS A 30 MILLION BUDGET SURPLUS THIS YEAR AND IS RETURNING THIS SURPLUS TO ITS CUSTOMEROWNERS MUCH THE WAY AN INVESTOROWNED UTILITY WOULD RETURN A SURPLUS TO ITS STOCKHOLDERS THIS SURPLUS HAS NOTHING TO DO WITH SUBSIDIZED FEDERAL POWER ONETHIRD OF THIS AMOUNT COMES FROM THE FAVORABLE SETTLEMENT OF A TRANSMISSION DISPUTE INVOLVING PACIFIC GAS & ELECTRIC ONETHIRD FROM POWER COST SAVINGS DUE MOSTLY TO PALO ALTO'S PARTIAL OWNERSHIP IN A NONFEDERAL HYDROELECTRIC PROJECT AND THE BALANCE FROM OTHER SAVINGS INCLUDING BOND REFINANCINGS AND BENEFITS FROM VARIOUS POWER POOLING ARRANGEMENTS ITEM 6 MARKET PRICING IS ALREADY THE WAVE OF THE PRESENT FOR THE REST OF THE UTILITY INDUSTRY THIS STATEMENT WOULD SHOCK STATE AND FEDERAL REGULATORS THE ELECTRIC UTILITY INDUSTRY IS STILL GOVERNED BY COSTBASED REGULATORY PRINCIPLES PROFITS FOR REGULATED UTILITIES ARE SET ACCORDING TO WHAT IS DETERMINED TO BE A REASONABLE RATE OF RETURN ON INVESTMENTS MARKET PRICING MAY BE COMING FOR NEW GENERATION RESOURCES BUT RATEOFRETURN REGULATION WILL CONTINUE TO BE THE NORM FOR EXISTING RESOURCES INCLUDING FEDERAL POWER RESOURCES 9311100020 931110 ELECTROCOM LOWERS '94 EARNINGS OUTLOOK CONTRACTS ARE DELAYED DALLAS ELECTROCOM AUTOMATION INC SAID IT EXPECTS ITS 1994 EARNINGS TO BE LOWER THAN FORECAST BECAUSE OF US POSTAL SERVICE DELAYS IN AWARDING NEW CONTRACTS AND DECIDING WHETHER TO EXERCISE OPTIONS UNDER EXISTING ELECTROCOM CONTRACTS WITH THE NEWS ELECTROCOM SHARES FELL 2 OR 17 TO 950 IN HEAVY COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ELECTROCOM SAID IT EITHER HAS SUBMITTED OR EXPECTS TO SOON SUBMIT BIDS ON POSTOFFICE CONTRACTS WITH A POTENTIAL VALUE OF MORE THAN 600 MILLION A COMPANY SPOKESMAN SAID THAT ONE BID WITH AN ESTIMATED VALUE OF 300 MILLION FOR A DEVICE THAT SORTS MAIL FOR CARRIERS WAS EXPECTED TO BE AWARDED BY THE END OF LAST MONTH BUT HAS BEEN DELAYED UNTIL EARLY 1994 AS A RESULT OF THE DELAYS TOM BURMEISTER ELECTROCOM'S SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID THE COMPANY IS NO LONGER COMFORTABLE WITH INDUSTRY ANALYSTS' ESTIMATES THAT IT WILL REPORT EARNINGS OF ABOUT 139 A SHARE IN 1994 IN AN INTERVIEW MR BURMEISTER SAID 1994 EARNINGS WOULD PROBABLY BE IN THE RANGE OF THOSE EXPECTED FOR 1993 INDUSTRY ANALYSTS HAVE PROJECTED 1993 EARNINGS OF BETWEEN 108 AND 112 A SHARE FOR ELECTROCOM WHICH MAKES HIGHSPEED AUTOMATED DOCUMENTPROCESSING SYSTEMS FOR 1992 ELECTROCOM REPORTED NET INCOME OF 277 MILLION OR 102 A SHARE ON REVENUE OF 4698 MILLION FOR THE NINEMONTH PERIOD ENDED SEPT 30 THE COMPANY HAD NET INCOME OF 189 MILLION OR 70 CENTS A SHARE ON REVENUE OF 2863 MILLION A SPOKESMAN FOR ELECTROCOM SAID THAT AS OF MARCH 31 THE COMPANY HAD A BACKLOG OF ORDERS VALUED AT MORE THAN 600 MILLION FROM THE POST OFFICE ALTHOUGH THE COMPANY HAS SINCE COMPLETED SOME OF THAT WORK 9311100019 931110 ECONOMY ECONOMISTS IN SURVEY SEE STRONGER GROWTH AND SLOWER INFLATION A WALL STREET JOURNAL NEWS ROUNDUP ECONOMIC GROWTH NEXT YEAR WILL BE SLIGHTLY STRONGER AND INFLATION A BIT LESS THAN PREVIOUSLY ESTIMATED ACCORDING TO THE LATEST MONTHLY SURVEY OF ECONOMISTS BY BLUE CHIP ECONOMIC INDICATORS THE CONSENSUS ESTIMATE OF 35 ECONOMISTS POLLED LAST WEEK NOW CALLS FOR A 28 GROWTH RATE ADJUSTED FOR INFLATION A TENTH OF A PERCENTAGE POINT HIGHER THAN THAT RECORDED A MONTH AGO THE ECONOMISTS RAISED FOURTHQUARTER GROWTH ESTIMATES BY A LARGER AMOUNT THREETENTHS OF A PERCENTAGE POINT TO A 33 ANNUALIZED RATE STRONGER AUTO AND HOUSING SALES AND AN EXPECTED SURGE IN INDUSTRIAL PRODUCTION WERE CITED AS REASONS FOR THE MORE BULLISH READING MOST ECONOMISTS BLAME THE EXPECTED INCREASE IN TAXES IN 1994 FOR COOLING OFF THE FOURTHQUARTER PACE HOWEVER THEIR VIEW OF SLIGHTLY SLOWER INFLATION THAN EXPECTED EARLIER WAS REINFORCED BY YESTERDAY'S SURPRISINGLY LOW PRODUCERPRICES INFLATION FIGURE THE ECONOMISTS NOW ARE EXPECTING A 3 CONSUMER PRICE INDEX INFLATION RATE FOR 1994 SIMILAR TO THEIR ESTIMATE FOR 1993 BUT A TENTH OF A PERCENTAGE POINT LOWER THAN THE CONSENSUS OF A MONTH AGO DESPITE THE GOOD NEWS ON PRODUCER PRICES SOME ECONOMISTS EXPECT HIGHER INFLATION TODAY'S NEWS ON THE PPI MIGHT BE THE LAST BIT OF POSITIVE NEWS ON INFLATION SAID WILL BROWN CHIEF ECONOMIST OF MORGAN GUARANTY TRUST CO THE PRESSURE HE SEES BUILDING ON ECONOMICALLY SENSITIVE COMMODITY AND CAPITAL GOODS PRICES STEMS FROM HIS 34 ECONOMIC GROWTH FORECAST FOR NEXT YEAR ONE OF THE HIGHEST FORECASTS IN THE BLUE CHIP GROUP COMPILED BY ROBERT EGGERT FOR A NEWSLETTER HE PUBLISHES IN SEDONA ARIZ 9311100018 931110 WORLD BANK BOND REPURCHASE WASHINGTON THE WORLD BANK SAID IT STANDS READY TO REPURCHASE IN DOMESTIC AND INTERNATIONAL MARKETS FROM TIME TO TIME OUTSTANDING WORLD BANK BONDS DENOMINATED IN JAPANESE YEN THE BANK NOTED IN A BRIEF STATEMENT THAT IT CONTINUES ITS OCCASIONAL OPENMARKET PURCHASES OF ITS US DOLLAR BONDS BEGUN IN JANUARY 1992 THE BANK SAID REPURCHASED BONDS WILL BE REFINANCED THROUGH ITS REGULAR FUNDING PROGRAM INCLUDING GLOBAL BONDS AND STRUCTURED FINANCE TRANSACTIONS 9311100017 931110 AUTOMOBILES BY KRYSTAL MILLER AS CAR AND TRUCK PRICES REBOUND WITH THE ECONOMY MORE CARBUYING SERVICES FIGURE THERE IS MONEY TO BE MADE HELPING PEOPLE SAVE MONEY WHAT THEY OFFER CONSUMERS IS AN EXPERT TO DO THEIR HAGGLING FOR EXAMPLE THERE IS CARBARGAINS A TELEPHONE SERVICE OFFERED BY THE WASHINGTONBASED CENTER FOR THE STUDY OF SERVICES A NONPROFIT CONSUMER ORGANIZATION FOR A 135 FEE CALLERS FROM ANYWHERE IN THE US CAN TELL A CARBARGAINS OPERATOR THE SPECIFIC CAR AND EQUIPMENT THEY WANT CARBARGAINS PROMISES THAT WITHIN TWO WEEKS IT WILL GET AT LEAST FIVE DEALERS IN YOUR AREA TO BID FOR YOUR BUSINESS CARBARGAINS SENDS YOU COPIES OF THE BIDS AS WELL AS SUCH OTHER INFORMATION AS ADVICE ON FINANCING THIS IS A WAY TO SAVE PEOPLE FROM THE HASSLE OF HIGHPRESSURE SALES TACTICS SAYS ROBERT KRUGHOFF PRESIDENT OF THE CENTER FOR THE STUDY OF SERVICES WE PROMISE TO CREATE A COMPETITION FOR OUR CUSTOMERS WITH THIS SERVICE CONSUMERS ARE GOING TO GET A GOOD PRICE J DOC WATSON PRESIDENT OF BUYER BEAWARE IN HUMBLE TEXAS ACTUALLY VISITS CAR SHOWROOMS TO NEGOTIATE DEALS ON BEHALF OF HIS CLIENTS I'M LOOKING FOR THE DEALER WITH THE BEST OFFER SAYS MR WATSON HIMSELF A FORMER DEALER HE HAS FOUND THAT MANY DEALERS NOW DEMAND A 400 TO 700 PROFIT ON A CHEVROLET SUBURBAN A YEAR AGO DEALERS WERE WILLING TO ACCEPT A 300 TO 500 PROFIT AND BUYERS WHO WANT A 1993 HONDA MOTOR ACCORD CAN PURCHASE ONE AT INVOICE BUT DEALERS ARE INSISTING ON A 1200 PROFIT ON THE REDESIGNED 1994 MODEL SOME COMPANIES PROVIDE CAR SHOPPERS WITH PRICE AND PRODUCT INFORMATION AND LET YOU DO THE HAGGLING CONSUMER REPORTS HAS LONG OFFERED A PRICING SERVICE THAT MAILS OR FAXES CALLERS THE DEALER INVOICE PRICES OF REQUESTED MODELS AND PRODUCT DETAILS PACE PUBLICATIONS A PUBLISHER OF CONSUMER CARPRICE GUIDES JUST STARTED CAR PRICE NETWORK A SIMILAR PRICING SERVICE FOR NEW AND USED CARS AND LIGHT VEHICLES EXPERTS SAY BUYING SERVICES CAN ARM CONSUMERS WITH USEFUL INFORMATION AND OFTEN SAVE THEM TIME AND MONEY MOST CONSUMERS AREN'T AS SOPHISTICATED ABOUT THE CARBUYING PROCESS AS DEALERS SAYS CLARENCE DITLOW EXECUTIVE DIRECTOR OF THE CENTER FOR AUTO SAFETY A NONPROFIT CONSUMER ORGANIZATION HE WARNS HOWEVER THAT CONSUMERS MUST SHOP CAREFULLY FOR A REPUTABLE BUYING SERVICE CARS WITH AIR BAGS ARE PILING UP HIGHER INSURANCE CLAIMS FOR PERSONAL INJURIES THAN THOSE WITHOUT A STUDY FINDS IN A SURVEY COVERING THE PAST FOUR YEARS RESEARCHERS AT VIRGINIA COMMONWEALTH UNIVERSITY CONCLUDED THAT PERSONALINJURY CLAIMS FOR A GIVEN VEHICLE TEND TO RISE ONCE IT IS EQUIPPED WITH AN AIR BAG TAKE FORD MOTOR'S CROWN VICTORIA IN 1989 PERSONALINJURY CLAIMS FOR THE CROWN VICTORIA WITHOUT AN AIR BAG WERE 43 LOWER THAN FOR THE AVERAGE CAR THE NEXT YEAR THE CAR GOT AN AIR BAG AND THE PERSONALINJURY CLAIMS ROSE TO 39 LOWER THAN AVERAGE FOR 1991 THE FIGURE WAS 37 THE RESEARCHERS SAY JUMPS LIKE THAT ARE SIGNIFICANT AND THEY FOUND SIMILAR TRENDS INVOLVING OTHER VEHICLES JUST WHY A CAR'S RECORD ON PERSONALINJURY CLAIMS WORSENS WHEN IT GETS AN AIR BAG IS A MYSTERY THE RESEARCHERS SAY IT ISN'T PARTICULARLY BECAUSE THE AIR BAGS THEMSELVES ARE HARMFUL INDEED THE SAME STUDY FOUND THAT A PERSON INVOLVED IN A HEADON COLLISION IS LESS LIKELY TO BE SERIOUSLY INJURED OR KILLED IF THE CAR HAS AN AIR BAG THAN IF IT DOESN'T THE RESEARCHERS SPECULATE THAT PEOPLE MAY DRIVE MORE AGGRESSIVELY BECAUSE OF AN ADDED FEELING OF SECURITY OWING TO THEIR AIR BAGS IF YOU BUILD A SAFER LADDER PEOPLE WILL CLIMB HIGHER SAYS GEORGE HOFFER A VIRGINIA COMMONWEALTH PROFESSOR AND COAUTHOR OF THE STUDY ANOTHER POSSIBLE EXPLANATION MAYBE PEOPLE WHO HAVE AIR BAGS AREN'T WEARING THEIR SEAT BELTS AIR BAGS AREN'T AS EFFECTIVE WITHOUT THEM WE'RE NOT ARGUING THAT AIR BAGS ARE UNSAFE MR HOFFER SAYS I WOULD RATHER HAVE AN AIR BAG THAN NOT THE NEON CHRYSLER'S NEWEST SMALL CAR WON'T GO ON SALE UNTIL JANUARY BUT CHRYSLER IS ALREADY TINKERING WITH IT AS A POSSIBLE PLATFORM FOR A NEW SMALL INEXPENSIVE SPORTS CAR IT'S AN ALLURING IDEA IN THE AUTO INDUSTRY WORLDWIDE AS CAR MAKERS TRY TO DO MORE WITH LESS MONEY IT'S WHAT VOLKSWAGEN DID WITH THE GTI VERSION OF ITS GOLF AND AT THE FRANKFURT MOTOR SHOW GENERAL MOTORS' ADAM OPEL UNIT SHOWED AN IMPRESSIVE SPORTY COUPE BASED ON ITS ENTRYLEVEL CORSA THE IDEA GOES BACK AT LEAST TO THE ORIGINAL 1960S FORD MUSTANG WHICH PUT A SEXY BODY ON FORD'S YAWNER OF A SEDAN THE FALCON WHAT OPEL DID WITH THE TIGRA WHICH IT SHOWED AT FRANKFURT WAS MAINLY TO GIVE THE ESCORTSIZED CORSA A FASHIONABLE SHEETMETAL OUTFIT AMONG THE EXECUTIVES WHO WERE IMPRESSED WITH THE TIGRA WAS ROBERT J EATON THE CHAIRMAN OF CHRYSLER WHO FORMERLY HAD RESPONSIBILITY FOR OPEL AS THE HEAD OF GM EUROPE IF YOU WANT THE SECURITY OF AN AIR BAG BUT YOUR CAR OR TRUCK ISN'T EQUIPPED WITH ONE THERE'S HOPE IN THE AFTERMARKET BREED TECHNOLOGIES LAKELAND FLA INSTALLS DRIVERSIDE AIR BAGS IN MORE THAN 40 NEW AND USED VEHICLES BUILT BY GM AND CHRYSLER IN ABOUT SIX MONTHS THE COMPANY WILL ALSO BE ABLE TO OUTFIT CERTAIN FORD TOYOTA MOTOR AND HONDA VEHICLES BUT IT DOESN'T COME CHEAP INSTALLATION OF THE AIRBAG SYSTEM STARTS AT ABOUT 899 THAT'S ABOUT TWICE WHAT CAR MAKERS SAY THEY ADD TO CAR PRICES TO COVER THE COST OF AIR BAGS OWNING A LEXUS JUST GOT A LITTLE EASIER IF YOU DON'T MIND HANDMEDOWNS THE TOYOTA LUXURY DIVISION IS SELLING AND LEASING USED CARS THE PREOWNED MODELS UNDERGO TWO HOURS OF INSPECTION AND GET A 12MONTH/12000MILE WARRANTY OR A SIXYEAR/70000MILE WARRANTY DEPENDING ON THE AGE OF THE VEHICLE ALL COME WITH FREE 24HOUR ROADSIDE ASSISTANCE 9311100016 931110 REVIEW & OUTLOOK EDITORIAL ASIDES HIGHYIELD MBA SOME EYEBROWS ROSE WHEN THE UCLA BUSINESS SCHOOL BROUGHT MICHAEL MILKEN ABOARD THE ADJUNCT FACULTY THIS FALL BUT THESE ARE FOLKS AFTER ALL WHO KNOW MARKETS AND IT APPEARS THAT THEY'VE GAUGED PERFECTLY THE MARKET FOR BUSINESS KNOWLEDGE THE MEGAFINANCIER'S WEEKLY COURSE IS AN OVERWHELMINGLY POPULAR MOB SCENE AND NOW ACCORDING TO MR MILKEN IN THE CAMPUS DAILY BRUIN 50 OTHER SCHOOLS INCLUDING HARVARD HAVE COME CALLING FOR HIS SERVICES THANK GOODNESS HIS RATES ARE MORE REASONABLE THESE DAYS 9311100015 931110 BUSINESS BRIEF CHRYSLER CORP COMPANY TO BOOST CAPACITY FOR ITS NEW LH CAR LINE CHRYSLER CORP IN DETROIT SAID IT PLANNED TO BEGIN BUILDING THE CHRYSLER CONCORDE AT ITS NEWARK DEL PLANT BOOSTING PRODUCTION CAPACITY FOR ITS NEW LH LINE OF MIDSIZE CARS BY 80000 TO 90000 CARS A YEAR WITH THE NEW MODEL AT NEWARK CHRYSLER WILL BE ABLE TO BUILD 400000 LH CARS A YEAR NEWARK CURRENTLY PRODUCES ANOTHER LH MODEL THE DODGE INTREPID ALONG WITH FOUR OTHER MIDSIZE CARS THE LION'S SHARE OF LH CARS COMES FROM CHRYSLER'S PLANT IN BRAMALEA ONTARIO WHICH PRODUCES ALL FIVE MODELS THE INTREPID CONCORDE EAGLE VISION CHRYSLER LHS AND CHRYSLER NEW YORKER THE LH CHRYSLER'S FIRST MAJOR NEW CAR SINCE ITS K CARS IN THE EARLY 1980S HAS BEEN A STRONG SELLER SINCE ITS INTRODUCTION A YEAR AGO NEWARK CURRENTLY PRODUCES 360 INTREPIDS A DAY BUT WILL HAVE THE CAPACITY TO PRODUCE 720 INTREPIDS AND CONCORDES AFTER THE PLANT BEGINS BUILDING THE NEW MODEL IN THE MIDDLE OF NEXT YEAR 9311100013 931110 HEARD ON THE STREET BOSTON CHICKEN SOARS BY 143 ON ITS IPO DAY BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT'S UNDENIABLE NOW THE NEWISSUE MARKET IS FULL OF FEATHERS SHARES OF THE BARELY PROFITABLE RESTAURANT CHAIN BOSTON CHICKEN SIZZLED TO A 143 GAIN YESTERDAY THE BIGGEST OPENINGDAY LEAP OF ANY INITIAL PUBLIC OFFERING IN THE PAST TWO YEARS THE EVENT SPAWNED A CARNIVAL ATMOSPHERE AMONG NASDAQ TRADERS EVEN AS THEY WORRIED THAT THE IPO MARKET MIGHT BE HITTING A SPECULATIVE PEAK BOSTON CHICKEN NOW HAS A STUNNING STOCKMARKET VALUE OF MORE THAN 800 MILLION DESPITE THE NAPERVILLE ILL COMPANY'S LIMITED OPERATING HISTORY THAT INCLUDES REVENUE LAST YEAR OF JUST 83 MILLION AND A NET LOSS OF 59 MILLION I'D SAY WALL STREET FLEW THE COOP SAID GEORGE R MOORIN VICE PRESIDENT OF OTC TRADING AT JJB HILLIARD WL LYONS INC IN LOUISVILLE KY IT'S CRAZY BASED ON THE STOCK PRICE I WOULDN'T TOUCH IT WITH A 10FOOT ROTISSERIE SPIT SAID CHARLES RONSON OF BALESTRA CAPITAL NEW YORK THE IPO WAS PRICED AT 20 OPENED AT 45 1/4 AND FINISHED AT 48 1/2 ON THE NASDAQ STOCK MARKET DOUGLAS A KASS DIRECTOR OF RESEARCH AT JWCHARLES/CSG IN BOCA RATON FLA REMARKED THAT SMALL INVESTORS IN BOSTON CHICKEN ARE GOING TO GET EGG ON THEIR FACE VOLUME OF 84 MILLION SHARES SUGGESTS THAT THE MUTUAL FUNDS AND OTHER BIG BUYERS THAT NORMALLY GRAB MOST OF A HOT IPO WERE QUICKLY SELLING OUT TO THE LITTLE GUY THE 19 MILLION SHARES SOLD IN THE IPO REPRESENT A 10 STAKE IN THE COMPANY IN CONTRAST TO INVESTORS WHO BOUGHT THE STOCK YESTERDAY PREIPO INVESTORS IN BOSTON CHICKEN HAD PAID AN AVERAGE OF ONLY 297 A SHARE THE PROSPECTUS STATES IN A SOCALLED CONCURRENT OFFERING EXECUTIVE OFFICERS OF THE COMPANY YESTERDAY BOUGHT 900000 RESTRICTED SHARES AT 20 THESE SHARES CAN'T BE SOLD FOR 180 DAYS IF 20 IS THE PRICE THE INSIDERS WERE WILLING TO PAY WHY IS THE PUBLIC WILLING TO PAY NEARLY 2 1/2 TIMES AS MUCH IT'S BASICALLY UNINFORMED RETAIL INVESTORS THAT ARE PERHAPS UNKNOWINGLY BEING DUPED SAYS MR KASS HE SAYS THE STOCK JOINS SNAPPLE BEVERAGE PRESIDENT RIVERBOAT CASINOS AND COFFEE MARKETER STARBUCKS AMONG WILDLY OVERVALUED RECENT IPOS THAT SMALL INVESTORS SHOULD AVOID BUT SMART INVESTORS ON WALL STREET WON'T BE LEFT HOLDING THE BAG IF BOSTON CHICKEN SHARES DECLINE TO MORE DIGESTIBLE VALUATIONS SOON MANY BIG INVESTORS SUCH AS MUTUAL FUNDS BOUGHT THE SHARES FROM UNDERWRITERS MERRILL LYNCH AND ALEX BROWN AND FLIPPED THEM OR IMMEDIATELY SOLD THEM FOR A PROFIT BACK ON THE MARKET WHILE THE BIG INVESTORS WERE ABLE TO BUY THE OFFERING AT 20 MOST SMALL INVESTORS COULDN'T GET A PIECE YOU'RE CERTAINLY SUBSCRIBING TO THE GREATERFOOL THEORY IF YOU'RE LOOKING FOR A BIG UPSIDE FROM HERE IN THE NEXT SIX TO NINE MONTHS WARNS ROBERT NATALE EMERGINGGROWTH ANALYST FOR STANDARD & POOR'S BEFORE THE IPO MR NATALE RECOMMENDED TO INSTITUTIONS THAT THEY FLIP THE STOCK TO TAKE ADVANTAGE OF INVESTORS' FRENZY FOR LEAD UNDERWRITER MERRILL LYNCH THIS IS THE THIRD TIME IN THE CURRENT IPO FEVER THAT THE FIRM HAS BROUGHT OUT A HOT OFFERING THAT SOARED ON ITS FIRST TRADING DAY MANY OTHER FIRMS SHARED SUCH EXPERIENCES TO THEIR CHAGRIN A FIRSTDAY ZOOM CAN MEAN THAT SMALL INVESTORS WERE DRAWN INTO A SPECULATIVE DEAL AT A HIGH PRICE OR THAT THE UNDERWRITER UNDERPRICED THE STOCK AND DEPRIVED THE ISSUING COMPANY OTHER MERRILL DEALS TO HAVE FIRSTDAY JUMPS SINCE LAST YEAR WERE KIDDIEPLAYGROUND OPERATOR DISCOVERY ZONE WHICH JUMPED 61 AND GOLFCLUB MAKER CALLAWAY GOLF WHICH JUMPED 62 MERRILL DECLINED TO COMMENT ON THE BOSTON CHICKEN IPO EXCEPT TO SAY THAT THERE WAS STRONG DEMAND IN THE AFTERMARKET IN A PREIPO REPORT MR NATALE NOTED THAT THE BOSTON CHICKEN OFFERING WOULD BE HOT BECAUSE OF THE SMALL AMOUNT OF STOCK BEING OFFERED AND THE LIKELIHOOD OF PENTUP DEMAND FROM SMALL INVESTORS WHO EITHER PROFITED OR WISH THEY HAD FROM BUYING STOCK IN DISCOVERY ZONE OR THE VIDEORENTAL CHAIN BLOCKBUSTER ENTERTAINMENT BOSTON CHICKEN'S CHAIRMAN 35YEAROLD SCOTT A BECK IS A FORMER BLOCKBUSTER EXECUTIVE AS ARE SOME OTHER MEMBERS OF MANAGEMENT MR NATALE OF S&P PRAISES BOSTON CHICKEN'S MANAGEMENT BUT SAYS THE COMPANY IS A LITTLE EARLY IN TAPPING THE IPO MARKET OF THE CHAIN'S 175 OUTLETS 116 HAVE BEEN OPEN LESS THAN ONE YEAR AND 27 LESS THAN TWO YEARS THE COMPANY FIRST WAS PROFITABLE IN THE SECOND QUARTER THIS YEAR AND PREVIOUSLY INCURRED SIGNIFICANT OPERATING LOSSES THE PROSPECTUS NOTES AT YESTERDAY'S CLOSING PRICE BOSTON CHICKEN'S SHARES ARE TRADING AT 269 TIMES MR NATALE'S ESTIMATED 1993 PROFIT FOR THE COMPANY OF 18 CENTS A SHARE THE SHARES TRADE AT NEARLY 100 TIMES HIS ESTIMATED PROFIT FOR NEXT YEAR OF 50 CENTS A SHARE CONTRIBUTING TO THE PRICE SURGE IS THE CRAZE FOR ROTISSERIEROASTED CHICKEN FASTFOOD RESTAURANTS FEATURING MARINATED ROTATING BIRDS ARE HOT PEPSICO'S KFC CHAIN HAS A NEW ROTISSERIE PRODUCT AND A COSTLY ADVERTISING CAMPAIGN FOR IT THE BOSTON CHICKEN MANIA SPILLED OVER TO OTHER CHICKENRESTAURANT STOCKS AS INVESTORS SOUGHT ANY PIECE OF THE ACTION THEY COULD GET CLUCKER'S WOOD ROASTED CHICKEN ROSE 1 5/8 TO 13 1/4 POLLO TROPICAL JUMPED 1 1/4 TO 21 AND KOO KOO ROO GAINED 1 3/8 TO 8 CHICKEN PRODUCER HUDSON FOODS MAJOR SUPPLIER TO BOSTON CHICKEN ALSO INCHED UP IN RECENT DAYS BUT FELL 5/8 YESTERDAY TO 12 3/4 SUSAN HIRSCH SMALLSTOCK GROWTH ANALYST WITH LEHMAN BROTHERS SAYS THAT WAVES OF MUTUALFUND MONEY HAS BEEN FLOWING INTO AGGRESSIVE SMALLCAP ISSUES INCLUDING HOT IPOS BUT SHE ANTICIPATES A SHIFT BACK INTO MORESEASONED GROWTH COMPANIES THE IPO CALENDAR IS OVERHEATING SHE SAYS BOSTON CHICKEN SAID PROCEEDS OF THE IPO AND A CONCURRENT PRIVATE PLACEMENT OF 900000 COMMON SHARES WOULD TOGETHER YIELD THE COMPANY ABOUT 515 MILLION IN NET PROCEEDS THAT WILL BE USED FOR EXPANSION THE COMPANY PLANS TO INCREASE ITS 175STORE CHAIN TO 200 BY YEAR END AND TO ABOUT 400 BY THE END OF NEXT YEAR ONE BIG INVESTOR WHO SAYS HE DIDN'T DUMP ALL HIS HOLDINGS IS DOUGLAS S FOREMAN PORTFOLIO MANAGER OF PUTNAM INVESTMENT MANAGEMENT'S SPECIALTY GROWTH EQUITIES GROUP IN BOSTON THE'VE GOT A TERRIFIC PRODUCT HE SAYS BASICALLY WHAT THEY'RE DOING IS SELLING HOMECOOKED MEALS AT FASTFOOD PRICES MEALS OF A QUARTERCHICKEN TWO SIDE ITEMS AND CORN BREAD START AT 399 AT MOST OUTLETS THE COMPANY SAYS HOW DID MCDONALD'S GET STARTED ASKS QAMAR ZAMAN A HEMATOLGIST/ONCOLOGIST IN CUMBERLAND MD AND A REGULAR IPO BUYER WHO MANAGED TO GET HIS HANDS ON 75 BOSTON CHICKEN SHARES AT THE OFFERING PRICE THIS COMPANY COULD KEEP EXPANDING AND OPEN UP IN DIFFERENT CITIES ALMOST UNNOTICED AMID THE CHICKEN FRENZY WAS ANOTHER NEW STOCK DR ZAMAN HOLDS URBAN OUTFITTERS WHICH LEAPED TO 23 3/4 FROM AN OFFERING PRICE OF 18 WARREN GETLER AND SARA CALIAN CONTRIBUTED TO THIS ARTICLE 9311100012 931110 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB THAT CREAKING SOUND YOU HEAR IS THE DEMOCRATIC COALITION THAT ELECTED BILL CLINTON STRAINING UNDER PRESSURES THAT THREATEN TO PULL IT APART TROUBLE SIGNS ARE APPEARING FOR THE DEMOCRATS ON THREE CRUCIAL FRONTS AMONG BLACKS THE MIDDLE CLASS AND LABOR UNIONS THOSE WERE CORE CONSTITUENCIES IN THE CAMPAIGN IN WHICH PRESIDENT CLINTON MANAGED TO WIN THE WHITE HOUSE WITH JUST 43 OF THE VOTE OBVIOUSLY GIVEN THE THIN NATURE OF THAT ELECTORAL MANDATE TROUBLE AMONG THOSE GROUPS SPELLS TROUBLE FOR THE PARTY AS A WHOLE WARNING FLAGS ARE UP BLACKS SINCE CASTING 83 OF THEIR VOTES FOR MR CLINTON IN THE PRESIDENTIAL RACE AFRICANAMERICANS HAVE SEEMED UNENTHUSIASTIC ABOUT SHOWING UP TO HELP OTHER DEMOCRATS THEY CONTINUE TO VOTE OVERWHELMINGLY FOR DEMOCRATS NINE OF 10 BLACKS WENT FOR DEMOCRAT BOB KRUEGER IN A SPECIAL TEXAS SENATE RACE AND PROBABLY THE SAME SHARE FOR WYCHE FOWLER IN A GEORGIA SENATE RACE BUT BOTH LOST MR FOWLER IN A TIGHT RACE WHERE MORE BLACK VOTES WOULD HAVE HELPED THEN CAME LAST WEEK'S ELECTION FOR GOVERNOR OF NEW JERSEY WHERE LOW BLACK TURNOUT IN PART COST DEMOCRATIC GOV JIM FLORIO HIS JOB THE TURNOUT WAS CAUSED IT APPEARS BY BOTH LACK OF ENTHUSIASM FOR MR FLORIO AND CLEVER REPUBLICAN TACTICS GOV FLORIO EASILY WON THE BLACK VOTE IN HIS RACE AGAINST REPUBLICAN CHRISTIE TODD WHITMAN WITH AN ESTIMATED 75 UP FROM 66 WHEN HE WON FOUR YEARS AGO BUT EXIT POLLS INDICATED THAT THE SIZE OF THE BLACK VOTE DROPPED SUBSTANTIALLY TO 8 OF THE STATE TOTAL FROM 12 IN THE GOVERNOR'S RACE FOUR YEARS AGO IN THE EXCEEDINGLY TIGHT NEW JERSEY RACE THAT FOURPOINT DROP WAS ENOUGH TO HAVE GIVEN HIM THE ELECTION SAYS DAVID BOSITIS A POLITICAL ANALYST WITH THE JOINT CENTER FOR POLITICAL AND ECONOMIC STUDIES APPARENTLY IT WASN'T JUST A LACK OF ENTHUSIASM FOR MR FLORIO THAT KEPT BLACKS AT HOME ED ROLLINS THE MANAGER OF THE SUCCESSFUL WHITMAN CAMPAIGN SAID YESTERDAY THAT THE REPUBLICANS USED SOCALLED WALKINGAROUND MONEY WHICH IS LEGAL IN NEW JERSEY ELECTIONS TO TURN BLACK VOTES AWAY FROM MR FLORIO WE WENT INTO BLACK CHURCHES AND WE BASICALLY SAID TO MINISTERS WHO HAD ENDORSED FLORIO DO YOU HAVE A SPECIAL PROJECT' MR ROLLINS SAID AT A MEETING WITH REPORTERS THEN HE SAID THE WHITMAN CAMPAIGN MADE CONTRIBUTIONS TO THEIR FAVORITE CHARITY IN RETURN THE WHITMAN CAMP DIDN'T ASK BLACK MINISTERS TO WITHDRAW ENDORSEMENTS OF MR FLORIO BUT MERELY TO AVOID TELLING CONGREGATIONS IT'S YOUR MORAL OBLIGATION THAT YOU GO ON TUESDAY AND VOTE FOR JIM FLORIO MR ROLLINS CONCLUDED TO A CERTAIN EXTENT WE SUPPRESSED THEIR VOTE BUT THAT WAS POSSIBLE IN THE FIRST PLACE HE NOTED BECAUSE FLORIO HIMSELF HAD NOT CONNECTED WITH THE BLACK COMMUNITY THE MIDDLE CLASS IN MANY WAYS THE POLITICS OF THE 1990S ARE A QUEST FOR THE HEARTS OF THE MIDDLE CLASS AGAIN THE NEW JERSEY RESULTS RAISE CONCERNS FOR DEMOCRATS AMONG VOTERS IN NEW JERSEY WITH HOUSEHOLD INCOMES OF 15000 TO 30000 EXIT POLLS INDICATE MR FLORIO WON 57 TO 43 BUT AMONG VOTERS WITH INCOME FROM 30000 TO 50000 HE ONLY WON 50 OF THE VOTE AND LOST TO MS WHITMAN AMONG WHITE VOTERS IN THAT CATEGORY THOSE NUMBERS ILLUSTRATE JUST PART OF THE DEMOCRATS' PROBLEM MR FLORIO DID AS WELL AS HE DID AMONG MIDDLEINCOME VOTERS PARTLY BY PUSHING A NEW DEMOCRAT PLATFORM THAT INCLUDED A TOUGHMINDED PLAN TO REFORM THE WELFARE SYSTEM YET THERE'S A DOWNSIDE THERE AS WELL AS MR BOSITIS NOTES SUCH WELFARE OVERHAUL PLANS FRIGHTEN SOME MEMBERS OF THAT OTHER KEY DEMOCRATIC CONSTITUENCY BLACKS AND MAY HAVE HELPED KEEP THEM HOME LABOR MR CLINTON'S BLUNT CRITICISM OF UNION TACTICS IN FIGHTING THE NORTH AMERICAN FREE TRADE AGREEMENT OPENED QUICK PAINFUL WOUNDS THEY WILL HEAL OVER TIME BUT THE DEEP SPLIT OVER THE TRADE DEAL RAISES A BROADER QUESTION OF WHETHER IN THE LONG RUN LABOR LEADERS AND GRASSROOTS ACTIVISTS ARE IN SYNC WITH THE NEW DEMOCRAT AGENDA THAT MR CLINTON LIKES TO ESPOUSE IN ITS PUREST FORM THIS AGENDA HAS MORE TO DO WITH ECONOMIC GROWTH AND INTERNATIONAL COMPETITIVENESS THAN WITH PROTECTING THE STATUS QUO AT LABOR'S GRASS ROOTS THERE WILL BE A TEMPTATION TO SPLINTER OFF INTO PEROTLIKE POPULIST MOVEMENTS IN MANY WAYS THESE TROUBLES ONLY POINT OUT THE IMPORTANCE OF HEALTHCARE REFORM TO THE CLINTON PRESIDENCY HEALTH CARE IS THE ONE ISSUE THAT COULD OFFER SOMETHING APPEALING TO ALL THE TROUBLED DEMOCRATIC CONSTITUENCIES HEALTH SECURITY TO THE MIDDLE CLASS AND UNIONISTS AND UNIVERSAL ACCESS AGAIN THOUGH THERE ARE HINTS OF TROUBLE A WALL STREET JOURNAL/NBC NEWS POLL INDICATES THAT THE SHARE OF MIDDLEINCOME VOTERS WHO FEAR THE CLINTON HEALTH PLAN COULD HURT THEIR FAMILIES ROSE TO 33 FROM 23 FROM SEPTEMBER TO OCTOBER ALONE IN THE LONG RUN TURNING THAT AROUND AND DOING HEALTH CARE RIGHT MAY BE THE MOST IMPORTANT POLITICAL TASK MR CLINTON FACES 9311100011 931110 PROFITS NO PLEASE A RUSSIAN CONCERN FINDS SUCCESS A BEAR WATCHMAKER MAKES MONEY BUT TICKS OFF ITS WORKERS OVERTIME FOR THE SHRINKS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL PETRODVORETS RUSSIA SOON AFTER THE PETRODVORETS WATCH CO WENT PRIVATE IN 1990 A TERRIBLE THING HAPPENED IT STARTED MAKING MONEY WHILE THE NOTION IS CENTRAL TO CAPITALISM IT WAS SO NEW AND STRANGE THAT WORKERS AND MANAGERS AT THIS FORMER STATEOWNED WATCH FACTORY STARTED COMING UNWOUND SQUABBLES BROKE OUT OVER HOW TO USE THE PROFITS AND OVER HOW MUCH PROFIT WAS ACTUALLY NECESSARY MANAGERS WHO MANAGED FOR PROFITS WERE ACCUSED OF PROFITING FROM THE MISERY OF WORKERS MIFFED SOME LIFETIME EMPLOYEES RAN OFF INTO THE FREE MARKET TO JOBS ELSEWHERE THIS DROVE MANAGERS CRAZY LARISA ALMIZ PETRODVORETS'S CHIEF DOCTOR NOTICED A DISTURBING TREND HUNDREDS OF EMPLOYEES WERE FLOCKING TO THE FACTORY CLINIC COMPLAINING OF SLEEPLESSNESS SCORES WERE SO DISTRAUGHT THEY SUFFERED NERVOUS BREAKDOWNS PROFITMAKING WAS MANDATING A WHOLE NEW WAY OF THINKING REQUIRING SUDDEN AND RADICAL CHANGE PEOPLE WERE SCARED DR ALMIZ SAYS PEOPLE STILL ARE THOUGH THEY ARE GETTING USED TO PROFITS AND THE CHANGE THEY BRING THEY HAVE TO PETRODVORETS SEEMS DESTINED FOR SUCCESS MUCH HAS BEEN WRITTEN ABOUT HOW TOUGH IT IS TO DO BUSINESS IN THE CHAOS AND ANARCHY OF RUSSIA'S EMERGING FREE MARKET BUT THE EXPERIENCE AT PETRODVORETS A WATCHMAKER CARVED FROM A COMPANY FOUNDED BY PETER THE GREAT SHOWS SUCCESS CAN BE A WHITEKNUCKLE RIDE AS WELL A CREATION OF STALINIST PLANNERS IN THE 1950S PETRODVORETS JUST SOUTHWEST OF ST PETERSBURG WENT PRIVATE IN 1990 WHEN THE SOVIET GOVERNMENT GAVE EMPLOYEES A TWOTHIRDS STAKE A YEAR LATER THE PLANT'S WORKERS PAID THE EQUIVALENT OF ABOUT 188 MILLION TO ACQUIRE THE GOVERNMENT'S REMAINING ONETHIRD INTEREST DESPITE AGING EQUIPMENT AND BALKY PARTSSUPPLIERS THE COMPANY SEEMED TO HAVE AN UNCANNY SENSE OF NICHE MARKETING FOR ITS CHEAP BUT RELIABLE MEN'S WATCHES IT LAUNCHED A NAUTICAL WATCH WITH A DISPLAY ALLOWING SAILORS TO QUICKLY TELL WHEN THEIR SHIFTS END IT REMAINS A BESTSELLER ALSO POPULAR HAS BEEN A MODEL THAT MARKS TIME IN 24HOUR PERIODS THE FEATURE IS HELPFUL IN TELLING DAY FROM NIGHT IN THE LONG DARK SIBERIAN WINTER BUT BY FAR ITS GREATEST MARKETING COUP HAS BEEN ITS PERESTROIKA WATCHES WHICH CONTINUE TO FETCH AS MUCH AS 75 IN SOME EUROPEAN MARKETS THE OVERSIZED WATCH WITH A BLACKANDWHITE FACE BEGAN LIFE AS A DUD DESIGNED ORIGINALLY FOR THOSE WITH POOR SIGHT ITS FACE FEATURES A LARGE ZERO IN PLACE OF A 12 NOBODY WAS BUYING THE WATCHES HOWEVER UNTIL PETRODVORETS MARKETERS CONVINCED EUROPEAN AND ASIAN WHOLESALERS THAT THE ZERO REPRESENTED PERESTROIKA'S NEW BEGINNING ORDERS CAME POURING IN AND PRODUCTION SOARED TO MORE THAN ONE MILLION ANNUALLY WHILE THOSE SALES HAVE PEAKED THE COMPANY THIS YEAR WILL STILL EXPORT ABOUT A MILLION OF ITS WATCHES OR MECHANISMS TO EUROPE AND ASIA BRINGING IN SOME 4 MILLION TO 45 MILLION IN HARD CURRENCY THE FACTORY ALSO WILL SELL AN ESTIMATED 37 MILLION WATCHES TO RUSSIANS BUT WITH SUCCESS HAS COME A HOST OF PROBLEMS THE KNOTTIEST BEING WHAT TO DO WITH THE COMPANY'S PROFITS PETRODVORETS FINISHED 1992 WITH A PROFIT OF 2094 MILLION RUBLES ABOUT 505000 AT 1992 EXCHANGE RATES FIVE TIMES 1991'S PROFIT LEVEL THE COUNCIL OF SHAREHOLDERS ELECTED BY EMPLOYEES IS CONSTANTLY PRESSING TO FUNNEL MORE MONEY TOWARD WAGES AND FATTER DIVIDENDS ON THE STOCK SINCE EMPLOYEES ALSO ARE THE STOCKHOLDERS DIVIDENDS AMOUNT TO SUPPLEMENTARY WAGE BOOSTS GIVEN THE WORKERS' LONG GROUNDING IN SOCIALISM IT ISN'T SURPRISING TO HEAR THE HEAD OF PETRODVORETS'S TRADE UNION EXTOLLING THE VIRTUES OF PROFITS BUT NOT AT THE EXPENSE OF WORKERS MY BIGGEST CONCERN IS TO PREVENT BIG REDUCTIONS IN THE WORK FORCE AND TO SEE THAT THE INCOMES OF THE WORKERS INCREASE GALINA GLAZKOVA SAYS BUT THE MANAGEMENT BOARD APPROVED BY THE SHAREHOLDERS' COUNCIL WOULD RATHER SPEND MONEY UPGRADING MACHINERY AND EQUIPMENT PROFIT AND EFFICIENCY EVEN IF THEY MEAN CUTTING BENEFITS ARE THE NEW BYWORDS PEOPLE HAVE GOTTEN USED TO THE GOOD THINGS AND NOW WHEN THEY ARE FACED WITH NEW PROBLEMS THEY ARE DISSATISFIED SAYS IRINA SAMOYLOVA THE COMPANY'S FINANCE DIRECTOR SO FAR THE WORKERS SEEM TO HAVE AN EDGE IN THIS TUG OF WAR THOUGH WAGE INCREASES AREN'T KEEPING PACE WITH INFLATION THE COMPANY HAS DECLARED QUARTERLY DIVIDENDS SINCE THE MIDDLE OF 1991 THE PROFIT ISSUE ALSO REFLECTS A MORE DEEPSEATED LABORMANAGEMENT PROBLEM EACH SIDE IS TERRIFIED OF THE OTHER UNDER SOCIALISM I COULD WRITE A SPECIAL LETTER WITH MY COMPLAINTS TO ANY MANAGER 56YEAROLD VLADIMIR KIRILLOV A LIFETIME PETRODVORETS EMPLOYEE SAYS BUT NOW IT'S IMPOSSIBLE BECAUSE EVERY MANAGER CAN FIRE YOU THIS IS CLEARLY A CAPITALIST DILEMMA WHILE SOME EMPLOYEES HAVE JUMPED TO OTHER JOBS MANAGERS LAMENT THAT THEY TEND TO BE THE MORE TALENTED ONES YET MS SAMOYLOVA ARGUES THAT PETRODVORETS SHOULD SHED SCADS OF LESS WORTHY WORKERS TO REDUCE COSTS EVEN AS SHAREHOLDERS WORKERS CAN BE FIRED THOUGH THEY RETAIN SHARES IN THE COMPANY UNLESS THEY CHOOSE TO SELL THEM BUT SHE SAYS MANAGERS HAVE HEARD STORIES ABOUT LAIDOFF EMPLOYEES IN THE US RETURNING TO THEIR FORMER FACTORIES AND SHOOTING THE MANAGERS WE AS MANAGERS ARE AFRAID OF LAYING OFF PEOPLE BECAUSE WE DON'T KNOW WHAT THE CONSEQUENCES WILL BE SHE CONFESSES AS THE CASHIER IN THE COMPANY CAFETERIA USING AN ABACUS ADDS UP HER BILL FOR A BOWL OF THIN CABBAGE SOUP FISH AND COFFEE MS SAMOYLOVA HAS SEEN FACTORY LIFE FROM BOTH SIDES SEVERAL YEARS AGO AS HEAD OF THE FACTORY'S TRADE UNION SHE FOUGHT FOR THE EXPANSION OF WORKERS' BENEFITS AND HELPED WIN NUMEROUS AMENITIES A KINDERGARTEN AN ATHLETIC STADIUM AND MEDICAL CLINIC AMONG THEM IN THE OLD DAYS IT WAS A GOAL FOR A FACTORY TO HAVE A BIG SOCIALSERVICE SECTOR SHE SAYS BUT NOW AS A MANAGER STRUGGLING TO INCREASE PROFITS SHE NOTES THAT ABOUT 25 OF THE FACTORY'S PROFITS GO TO SUPPORT SUCH SERVICES ALREADY MANAGEMENT HAS DECIDED THAT WORKERS WILL HAVE TO CONTRIBUTE TOWARD HOUSING WHICH THE COMPANY ONCE PROVIDED FREE AND MANAGEMENT WANTS TO GET RID OF THE STADIUM AND KINDERGARTEN OR AT LEAST MAKE THEM SELFFINANCING TO FREE UP MORE FUNDS FOR FACTORY MODERNIZATION NOT SURPRISINGLY EMPLOYEES ARE RESISTING THE UNION CLAIMS IT IS WORKING TO PERSUADE LOCAL GOVERNMENT TO TAKE OVER THE OPERATION OF THE KINDERGARTEN AND STADIUM BUT MS SAMOYLOVA THINKS THAT IS JUST A GAMBIT TO STALL A DECISION LOCAL GOVERNMENTS ARE EVEN MORE STRAPPED FOR CASH THAN THE FACTORY MANAGEMENT BLAMES MANY OF ITS PROBLEMS ON THE STATE'S DECISION TO AWARD FACTORY OWNERSHIP EQUALLY TO ALL WORKERS REGARDLESS OF RANK IT WAS A GRAVE MISTAKE SAYS SIMONYANTS RAFIK PETRODVORETS'S COMMERCIAL DIRECTOR INDEED THE COMPANY IS MULLING A PROGRAM TO BUY THE SHARES OF RETIRING WORKERS UNTIL MANAGEMENT HAS A MAJORITY STAKE WE ARE VERY LIMITED IN THE CHANGES WE CAN MAKE MR RAFIK ADDS STILL MOST MANAGERS CONCEDE THAT LIFE IS BETTER NOW THAN UNDER CENTRAL PLANNING BACK THEN STODGY BUREAUCRATS AND NOT THE MARKET OFTEN DICTATED WHAT KINDS OF WATCHES GOT MADE ONE RESULT WAS THE DISASTROUS DISASTER WATCH IN THE 1960S PETRODVORETS STARTED CHURNING OUT WATCHES THAT COMBINED TIMETELLING WITH A RADIATIONMONITORING DEVICE THEY REMAINED PILED UPON THE SHELVES FOR YEARS BEFORE BUREAUCRATS GOT AROUND TO ASKING WHY THEY WEREN'T SELLING THE ANSWER A MANAGER SAYS WAS SIMPLE THE FEELING OF OUR CONSUMERS WAS THAT IT WAS BETTER TO DIE WITHOUT KNOWING THE RADIATION LEVELS 9311100010 931110 TECHNOLOGY SMITHKLINE WILL CUT UNIT'S STAFF COLLEGEVILLE PA SMITHKLINE BEECHAM SAID 112 EMPLOYEES OF ITS RECENTLY ACQUIRED DOCTORS & PHYSICIANS LABORATORY INC IN LEESBURG FLA WOULD BE LAID OFF BY EARLY 1994 SMITHKLINE BOUGHT THE MEDICAL TESTING LABORATORY LAST MONTH THE OTHER 70 OF DPL'S WORKERS WILL BE EMPLOYED BY SMITHKLINE THE COMPANY SAID SMITHKLINE A UNIT OF SMITHKLINE BEECHAM PLC ALSO WILL CLOSE FIVE OF DPL'S PATIENTSERVICE CENTERS BUT WILL KEEP THE MAIN LABORATORY AND 18 PATIENTSERVICE SITES 9311100009 931110 CLINTON'S HIDDEN HEALTH TAX BY MARTIN FELDSTEIN A RECENT WALL STREET JOURNAL/NBC NEWS POLL FOUND THAT MORE PEOPLE NOW THINK THAT THEY WILL BE HURT BY THE CLINTON HEALTH PLAN THAN THINK THEY WILL BE HELPED BY IT THIS SHARP DECLINE IN THE PLAN'S POPULARITY SINCE THE PRESIDENT'S SEPTEMBER SPEECH TO CONGRESS HAS PROBABLY OCCURRED BECAUSE PEOPLE DON'T LIKE THE IDEA THAT THEY MIGHT NO LONGER BE ABLE TO USE THEIR CURRENT DOCTORS AND WOULD FACE LIMITED CHOICES ABOUT MEDICAL CARE IN THE FUTURE THE NUMBER OF PEOPLE WHO REJECT THE CLINTON PLAN IS LIKELY TO RISE EVEN HIGHER WHEN THE PUBLIC BEGINS TO FOCUS ON THE MAJOR TAX INCREASE THAT THE PRESIDENT HAS PROPOSED TO FINANCE IT MR CLINTON HAS BEEN CAREFUL TO AVOID ANY REFERENCE TO A TAX HE TALKS INSTEAD ABOUT REQUIRING EMPLOYERS TO PAY FOR THE HEALTH CARE OF THEIR EMPLOYEES BUT WHILE THE PRESIDENT CAN TRY TO AVOID THE BIG T WORD EVERYONE KNOWS THAT A GOVERNMENT REQUIREMENT TO PAY MONEY IS A TAX AND EVEN THOUGH EMPLOYERS WOULD BE THE ONES REQUIRED TO WRITE THE BIGGEST CHECKS ECONOMISTS OF ALL POLITICAL VIEWS AGREE THAT SUCH EMPLOYMENTBASED TAXES ARE ULTIMATELY PAID BY THE EMPLOYEES IN THE FORM OF LOWER REAL WAGES SPECIFICALLY THE CLINTON PLAN WOULD REQUIRE EACH EMPLOYEE TO PAY A PREMIUM TO THE STATE HEALTH ALLIANCE THAT THE GOVERNMENT WOULD ESTABLISH PREMIUMS WOULD VARY WITH LARGER PREMIUMS FOR MARRIED EMPLOYEES THAN FOR SINGLE INDIVIDUALS MR CLINTON WOULD ALSO REQUIRE FIRMS TO PAY PREMIUMS THAT ARE FOUR TIMES WHAT THEIR EMPLOYEES PAY SUBJECT TO A LIMIT THAT WOULD KEEP THE TOTAL PREMIUMS OF ANY FIRM UNDER 79 OF ITS TOTAL PAYROLL FOR A TYPICAL MARRIED EMPLOYEE THE REQUIRED PERSONAL PREMIUM WOULD BE 872 A YEAR FOR ANY COUPLE THAT DOES NOT PAY THAT MUCH NOW THE REQUIREMENT IN PRESIDENT CLINTON'S PLAN WOULD BE A NEW TAX FOR FIRMS THAT ALREADY SPEND AS MUCH ON EACH EMPLOYEE AS THE CLINTON PLAN REQUIRES EG 2479 FOR EACH MARRIED EMPLOYEE WITH CHILDREN THERE IS NOTHING EXTRA TO PAY BUT IF THE REQUIRED PREMIUM IS MORE THAN THE FIRM NOW PAYS THERE IS NO AVOIDING THE FACT THAT THE EXTRA PAYMENT IS A TAX FOR THE MANY FIRMS THAT NOW PROVIDE NO INSURANCE THE ENTIRE PREMIUM WOULD BE A TAX SIMILARLY FOR THE MANY EMPLOYEES WHO NOW TAKE NO INSURANCE BECAUSE THEY ARE COVERED BY THEIR SPOUSES' PLANS THE ENTIRE PREMIUM WOULD BE A TAX AND FOR THOSE EMPLOYEES FOR WHOM THE FIRM NOW PAYS LESS THAN THE REQUIRED PREMIUM THE INCREASED PAYMENT WOULD BE A TAX HITTING EMPLOYERS WITH A NEW TAX LIKE THE CLINTON MANDATORY PREMIUM THAT IS BASED ON THE NUMBER OF EMPLOYEES OR THE TOTAL VALUE OF PAYROLL WOULD HAVE THREE IMMEDIATE EFFECTS WITH THE RELATIVE IMPORTANCE OF EACH EFFECT DIFFERING FROM FIRM TO FIRM FIRST THE HIGHER COST OF EMPLOYEES WOULD CAUSE SOME FIRMS TO FIRE SOME EMPLOYEES ESPECIALLY THOSE FOR WHOM THE EXTRA COST IS LARGE RELATIVE TO THEIR CURRENT WAGE THESE WOULD BE PRIMARILY LOWER WAGE EMPLOYEES SECOND THE HIGHER HEALTH CARE COSTS WOULD TEMPORARILY ERODE PROFITS AND THIRD SOME EMPLOYEES MIGHT TAKE PAY CUTS OR FORGO PAY INCREASES TO PROTECT THEIR JOBS BUT ALTHOUGH THE SHORTTERM RESPONSES TO THE NEW TAX WOULD BE DIFFERENT COMBINATIONS OF THESE THREE REACTIONS IN DIFFERENT FIRMS OVER A SOMEWHAT LONGER TERM THE NET EFFECT WOULD SIMPLY BE LOWER WAGES JUST AS HALTH INSURANCE PREMIUMS IN THE PAST HAVE SLOWED THE GROWTH OF WAGES HIGHER TAXES TO FINANCE HEALTH PREMIUMS IN THE FUTURE WOULD SLOW THE GROWTH OF WAGES EVEN MORE NOTHING ELSE IS POSSIBLE THE MARKET CAN PROVIDE JOBS FOR ALL THOSE WHO ARE NOW WORKING ONLY IF THE COST OF EMPLOYMENT TO FIRMS IS NO HIGHER THAN IT WOULD BE WITHOUT THE REQUIRED HEALTH PREMIUMS THAT MEANS THAT THE SUM OF THE NEW WAGE AND THE REQUIRED HEALTH TAX FOR EACH EMPLOYEE MUST NOT EXCEED WHAT THE FIRM NOW PAYS IN WAGE AND FRINGE BENEFITS THOSE WHO INITIALLY LOSE THEIR JOBS BECAUSE OF THE HIGHER MANDATED HEALTH PREMIUMS WOULD PUT DOWNWARD PRESSURE ON WAGES UNTIL THIS OCCURS THE KEY POINT IN ALL OF THIS IS THAT THE TRUE COST OF THE TAXES INCLUDING THE PART THAT IS LABELED A REQUIRED EMPLOYER PREMIUM WOULD BE BORNE BY EMPLOYEES IN THE FORM OF LOWER WAGES THE REDUCTION IN INDIVIDUALS' GROSS EARNINGS COULD BE QUITE SUBSTANTIAL FOR TWOEARNER FAMILIES WITH CHILDREN THE CLINTON PLAN WOULD REQUIRE THAT THE PREMIUMS PAID BY THE HUSBAND AND WIFE PLUS THE AMOUNTS THAT THEIR EMPLOYERS MUST CONTRIBUTE WOULD BE MORE THAN 5800 IT WOULD BE A RARE FAMILY FOR WHICH THIS WOULD NOT MEAN A SUBSTANTIAL TAX INCREASE THE RECENT DISCLOSURE THAT 40 OF AMERICANS WOULD PAY HIGHER OUTOFPOCKET PREMIUMS UNDER THE CLINTON PLAN THAN THEY DO NOW IS THEREFORE JUST THE TIP OF THE ICEBERG IN THE END WE WOULD ALSO PAY FOR THE MUCH MORE SUBSTANTIAL INCREASED EMPLOYER PREMIUMS BY HAVING TO ACCEPT LOWER NETOFTAX WAGES NOT CALLING THIS TAX A TAX IS MORE THAN JUST POLITICALLY HELPFUL SPIN CONTROL DESIGNED TO MAKE IT EASIER TO ENACT THE CLINTON PLAN THE PRESIDENT'S APPROACH IS MUCH MORE SIGNIFICANT IT WOULD KEEP THE TAX OUT OF THE BUDGET AND WOULD THEREFORE NOT REQUIRE CONGRESSIONAL ACTION TO RAISE THE TAX IN THE FUTURE AS THE COST OF HEALTH CARE RISES EMPLOYEES AND EMPLOYERS WOULD AUTOMATICALLY BE FORCED TO INCREASE THEIR PREMIUM PAYMENTS THE 79 CAP ON THE SHARE OF WAGES THAT A FIRM CAN PAY MEANS THAT IN ANY FIRM SUBJECT TO THE CAP THE EMPLOYER PREMIUM IS EQUIVALENT TO A 79 PAYROLL TAX A MAJORITY OF EMPLOYEES WOULD FIND THEMSELVES WORKING FOR SUCH FIRMS UNDER THE CLINTON PLAN WHEN ANY EMPLOYEE IN SUCH A FIRM EARNS AN ADDITIONAL 100 THE FIRM'S TOTAL PAYROLL GOES UP BY 100 AND THE FIRM MUST THEREFORE PAY AN ADDITIONAL 790 TO THE HEALTH ALLIANCE THIS TAX ON ADDITIONAL EARNINGS REDUCES THE REWARD FOR WORKING MORE HOURS FOR TAKING MORE RESPONSIBILITY OR FOR DOING MORE ARDUOUS WORK THE CLINTON HEALTH TAX WOULD NOT ONLY REDUCE TAKEHOME PAY BUT WOULD ALSO DISTORT INCENTIVES THE 79 CAP CONVERTS THE MANDATORY PREMIUM INTO A FULLFLEDGED PAYROLL TAX ON EMPLOYEES AT EVERY EARNINGS LEVEL EVEN AN EMPLOYEE WHOSE CURRENT HEALTH BENEFIT HAPPENS TO COST HIS OR HER EMPLOYER 79 OF THE EMPLOYEE'S INCOME WOULD NEVERTHELESS FACE A NEW 79 TAX ON ANY INCREASE IN THE INDIVIDUAL'S EARNINGS THE ADMINISTRATION'S FAILURE TO DISCUSS THE TRUE NATURE OF THE TAX INCREASE MAKES IT IMPOSSIBLE TO HAVE INFORMED PUBLIC DEBATE ABOUT MR CLINTON'S PROPOSALS FOR CHANGING OUR HEALTH CARE SYSTEM BUT EVEN MORE SERIOUSLY PROPOSING THAT A MAJOR NEW TAX NOT BE CALLED A TAX IS A FIRST STEP TOWARD A NEW FORM OF FISCAL IRRESPONSIBILITY IN WHICH FUTURE TAX INCREASES WOULD OCCUR AUTOMATICALLY WITHOUT LEGISLATIVE ACTION MR FELDSTEIN FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS IS A PROFESSOR OF ECONOMICS AT HARVARD 9311100008 931110 INTERNATIONAL BRIEF FIAT SPA DECEMBER LAYOFFS ARE SLATED AS CAR OUTPUT IS CUT BACK ITALY'S AUTO COMPANY FIAT SPA ANNOUNCED YESTERDAY IT WILL TEMPORARILY LAY OFF BETWEEN 12600 AND 42600 WORKERS IN DECEMBER TO CUT BACK ITS PRODUCTION BY 41700 CARS THE TURIN GROUP WHICH CONTROLS ABOUT 45 OF THE DOMESTIC MARKET WITH ITS BRANDS FIAT LANCIA AND ALFA ROMEO HAS BEEN IDLING WORKERS EVERY MONTH SINCE 1992 FOLLOWING ONE OF THE WORST POSTWAR CRISES FACED BY THE EUROPEAN AUTO INDUSTRY FIAT TOLD METALWORK UNIONS IT WILL LAY OFF 12700 WORKERS IN THE FIRST WEEK OF DECEMBER 12600 IN THE SECOND WEEK 31600 IN THE THIRD AND 42600 IN THE FOURTH WEEK OF THE MONTH SEPARATELY FIAT CHAIRMAN GIOVANNI AGNELLI SAID YESTERDAY THAT HE ISN'T OPTIMISTIC FOR A RECOVERY IN THE WESTERN EUROPEAN AUTO MARKET FOR NOW 9311100006 931110 STATE DEPARTMENT AIDES ARE INVESTIGATED BY US FOR LEAKING BUSH PERSONNEL FILES BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE JUSTICE DEPARTMENT IS CONDUCTING AN INVESTIGATION OF WHETHER SEVERAL STATE DEPARTMENT OFFICIALS VIOLATED THE LAW BY DISCLOSING INFORMATION FROM PERSONNEL FILES THE STATE DEPARTMENT'S INSPECTOR GENERAL SUSPECTING THAT THE OFFICIALS MAY HAVE VIOLATED THE LAW FORWARDED HIS PRELIMINARY REPORT ON THE MATTER TO THE JUSTICE DEPARTMENT A JUSTICE DEPARTMENT OFFICIAL SAID YESTERDAY HOWEVER THAT THE INSPECTOR GENERAL'S REPORT MAY NOT ADD MUCH TO WHAT THE DEPARTMENT ALREADY KNOWS ABOUT THE MATTER THE STATE DEPARTMENT INITIATED THE INVESTIGATION IN SEPTEMBER AFTER SOME OFFICIALS IN THE DEPARTMENT'S WHITE HOUSE LIAISON OFFICE RETRIEVED 160 PERSONNEL FILES OF POLITICAL APPOINTEES FROM THE BUSH ADMINISTRATION AND LEAKED THE CONTENTS OF AT LEAST TWO OF THOSE FILES TO THE WASHINGTON POST UNDER THE PRIVACY ACT DISCLOSURE OF THE MATERIAL IN THOSE FILES WOULD BE A CRIMINAL OFFENSE STATE DEPARTMENT SPOKESMAN MICHAEL MCCURRY SAID YESTERDAY THAT THE DEPARTMENT'S INSPECTOR GENERAL SHERMAN FUNK SENT A SUMMARY OF HIS FINDINGS TO THE JUSTICE DEPARTMENT'S PUBLIC INTEGRITY SECTION LATE MONDAY NIGHT MR FUNK HAD PROMISED LAWMAKERS LAST WEEK THAT HE WOULD DELIVER HIS FINDINGS TO THE JUSTICE DEPARTMENT BY MONDAY MR MCCURRY SAID IT WAS INAPPROPRIATE AT THIS TIME FOR HIM TO DISCUSS THE RESULTS OF MR FUNK'S PROBE BUT OTHER OFFICIALS CONFIRMING A WASHINGTON POST REPORT SAID IT WAS STANDARD PROCEDURE TO FORWARD WHAT IS KNOWN AS A PROSECUTIVE SUMMARY TO THE JUSTICE DEPARTMENT WHEN THERE'S SUSPICION THAT A CRIMINAL VIOLATION MAY HAVE OCCURRED THE STATE DEPARTMENT SPOKESMAN DECLINED TO IDENTIFY THE OFFICIALS WHO ARE SUSPECTED OF WRONGDOING THE INCIDENT REPRESENTS A TWIST ON AN EPISODE FROM LAST YEAR'S PRESIDENTIAL CAMPAIGN BUSH ADMINISTRATION OFFICIALS AT THE STATE DEPARTMENT LOOKING FOR DAMAGING REVELATIONS ABOUT THENCANDIDATE BILL CLINTON CONDUCTED A SEARCH OF MR CLINTON'S AND HIS MOTHER'S PASSPORT FILES THE EFFORT BACKFIRED EMBARRASSING THE BUSH ADMINISTRATION AND LEADING TO AN INSPECTOR GENERAL'S INQUIRY AND A CRIMINAL PROBE A CENTRAL FIGURE IN THAT PROBE FORMER ASSISTANT SECRETARY OF STATE FOR CONSULAR AFFAIRS ELIZABETH TAMPOSI WAS FIRED BY MR BUSH MS TAMPOSI'S FILE WAS ONE OF THOSE ALLEGEDLY LEAKED TO THE POST BY THE CLINTON ADMINISTRATION OFFICIALS MR MCCURRY SAID THAT THE JUSTICE DEPARTMENT MUST DECIDE WHETHER TO PROSECUTE THE CASE IF IT DECLINES TO PROSECUTE IT WOULD BE UP TO SECRETARY OF STATE WARREN CHRISTOPHER TO DETERMINE WHAT ACTIONS IF ANY TO TAKE 9311100005 931110 BUSINESS BRIEF AMERON INC PIPE MAKER PLANS TO CUT 300 JOBS IN RESTRUCTURING AMERON INC SAID IT PLANS TO CUT ABOUT 300 JOBS OR 20 OF ITS SALARIED WORK FORCE AS PART OF A COMPREHENSIVE RESTRUCTURING THAT WILL RESULT IN A CHARGE OF ABOUT 31 MILLION IN ITS FOURTH QUARTER ENDING NOV 30 THE CHARGES WILL MEAN A NET LOSS FOR THE QUARTER AND THE YEAR AMERON SAID IN THE 1992 FOURTH QUARTER THE PASADENA CALIF MAKER OF CONCRETE AND STEEL PIPES AND PROTECTIVE COATINGS REPORTED NET INCOME OF 19 MILLION OR 51 CENTS A SHARE THE CHARGES ARE RELATED TO CONSOLIDATION OF FACILITIES ELIMINATION OF CERTAIN OPERATIONS EMPLOYEE REDUCTIONS HAZARDOUSWASTE CLEANUP PROJECTS AND LEGAL EXPENSES MOST OF THE 300 JOB CUTS HAVE ALREADY BEEN MADE SAID GARY WAGNER CHIEF FINANCIAL OFFICER AMERON ANNOUNCED THE RESTRUCTURING IN AUGUST BUT DIDN'T PROVIDE DETAILS EXCLUDING THE CHARGES AMERON EXPECTS 1993 EARNINGS TO BE SUBSTANTIALLY IN EXCESS OF 1992 NET INCOME OF 153 A SHARE TOTAL NET INCOME LAST YEAR WAS 59 MILLION AMERON SHARES WERE QUOTED YESTERDAY AT 3625 UP 375 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING 9311100004 931110 WHO'S NEWS ECCS INC ECCS INC TINTON FALLS NJ WILLIAM A NAZARET 38 YEARS OLD WAS NAMED VICE PRESIDENT OF TECHNOLOGY/CHIEF TECHNOLOGY OFFICER A NEWLY CREATED POSITION AT THIS COMPUTERSYSTEMS CONCERN DR NAZARET HAD BEEN VICE PRESIDENT OF RESEARCH AND DEVELOPMENT FOR THE COMPANY 9311100003 931110 CONTINENTAL AIRLINES TRAFFIC HOUSTON CONTINENTAL AIRLINES SAID ITS OCTOBER TRAFFIC INCHED UP TO 3340174000 REVENUE PASSENGER MILES FROM 3338989000 REVENUE PASSENGER MILES A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE CONTINENTAL'S LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED ROSE TO 619 FROM 59 FOR THE FIRST 10 MONTHS OF THE YEAR CONTINENTAL SAID TRAFFIC FELL 13 TO 35820448000 REVENUE PASSENGER MILES FROM 36299930000 REVENUE PASSENGER MILES LOAD FACTOR FELL TO 632 FROM 64 9311100002 931110 BUSINESS BRIEF DNA PLANT TECHNOLOGY CORP STAKE IN FRESHWORLD HELD BY DU PONT TO BE ACQUIRED DNA PLANT TECHNOLOGY CORP SAID IT AGREED TO ACQUIRE DUPONT CO'S STAKE IN FRESHWORLD A FRUIT AND VEGETABLE BUSINESS JOINTLY OPERATED BY BOTH COMPANIES THE DEAL INCLUDES DNA STOCK CURRENTLY VALUED AT ABOUT 297 MILLION 15 MILLION IN CASH AND DNA'S 28 MINORITY INTEREST IN INTERMOUNTAIN CANOLA CO ANOTHER JOINT VENTURE BETWEEN DNA AND DUPONT DNA AND DUPONT BASED IN WILMINGTON DEL DECLINED TO PLACE A VALUE ON THE STAKE IN INTERMOUNTAIN A CANOLAOIL PROCESSING COMPANY DNA OFFICIALS SAID THE DEAL REFLECTS THE COMPANY'S DESIRE TO FOCUS ON THE PREMIUM FRUIT AND VEGETABLE BUSINESS 9311100183 931022 MORE HOT AIR ON GREENHOUSE GASES BY KENT JEFFREYS IT'S BEEN SAID THAT NO SCIENTIFIC THEORY GAINS PUBLIC ACCEPTANCE UNTIL IT HAS BEEN THOROUGHLY DISCREDITED NOWHERE IS THAT NOTION BETTER ILLUSTRATED THAN IN THE DEBATE OVER SOCALLED GREENHOUSE GAS EMISSIONS WHICH WAS GIVEN NEW LIFE ON TUESDAY BY THE CLINTON ADMINISTRATION'S ANNOUNCEMENT OF ITS PLAN TO REDUCE THESE EMISSIONS WHILE THE PLAN HAS BEEN TREATED TO UNCRITICAL PRESS COVERAGE FEW HAVE QUESTIONED ITS FOUNDATION AND THE MASSIVE COSTS IT WILL IMPOSE ON THE AMERICAN PUBLIC VICE PRESIDENT AL GORE'S SPEECH ANNOUNCING THE PLAN DECLARED THAT CLIMATE CHANGE IS THE HIGHESTRISK ENVIRONMENTAL PROBLEM THE WORLD FACES TODAY THIS DIRE ASSESSMENT IS THE DRIVNG FORCE BEHIND THE PLAN WHICH SEEKS TO REDUCE THE EMISSION OF GREENHOUSE GASES TO 1990 LEVELS TO ACHIEVE THIS MIGHTY GOAL THE ADMINISTRATION HAS PROPOSED ABOUT 50 SPECIFIC POLICY PROPOSALS TO REDUCE ENERGY AND MATERIAL USE AND INCREASE RELIANCE ON POLITICALLY CORRECT ENERGY SOURCES THE SEEMING HARMLESSNESS OF THE PROPOSALS HELPS EXPLAIN WHY THE ADMINISTRATION'S PLAN HAS SO FAR BEEN GIVEN A FREE RIDE BUT A BIGGER FACTOR IN HOW THE PLAN HAS BEEN RECEIVED STEMS FROM THE ADMINISTRATION'S PROMISE THAT MOST OF WHAT IT IS SUGGESTING IS STRICTLY VOLUNTARY NOTWITHSTANDING THAT THIS ASSERTION IS A CLASSIC CLINTONIAN HALFTRUTH ONE MIGHT ASK OF THE ADMINISTRATION IF SUCH POLICIES ARE TRULY NECESSARY TO AVERT A CLIMATE CATASTROPHE WHY ARE THEY PRESENTED AS VOLUNTARY THE REALITY HOWEVER IS THAT THE AMERICAN PUBLIC WILL BE IN FOR A RUDE SHOCK WHEN IT FINDS OUT THAT DUE TO PREVIOUS AGREEMENTS SIGNED BY PRESIDENT BUSH IT WILL HAVE TO COMPLY WITH A NUMBER OF RESTRICTIVE ENVIRONMENTAL POLICIES PRESIDENT BUSH SIGNED THE UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE AT THE RIO ENVIRONMENTAL SUMMIT IN 1992 THIS TREATY IS EXPECTED TO BECOME FULLY EFFECTIVE SOMETIME EARLY NEXT YEAR 36 OF THE REQUIRED 50 NATIONS HAVE SIGNED THE TREATY AND WOULD REQUIRE SIGNATORIES TO ADOPT BINDING NATIONAL POLICIES TO REDUCE GREENHOUSE GAS EMISSIONS IN OTHER WORDS THE VOLUNTARY NATURE OF THE CLINTON PLAN WILL SOON BECOME MANDATORY REGARDLESS OF THE WISHES OF BUSINESSES OR VOTERS KATIE MCGINTY DIRECTOR OF THE WHITE HOUSE OFFICE OF ENVIRONMENTAL POLICY HAS INDICATED THAT IF THIS PLAN DOES NOT PRODUCE THE DESIRED RESULTS OTHER MEASURES WILL BE CONSIDERED PERHAPS THE REASON FOR THE VOLUNTARY NATURE OF THE WHITE HOUSE PLAN IS ITS HUGE PRICE TAG MR CLINTON WANTS THE PRIVATE SECTOR TO PUT UP MOST OF THE MONEY IN THIS CASE ABOUT 68 BILLION FOR INVESTMENTS IN NEW TECHNOLOGIES WHILE SOME OF THESE WOULD OCCUR WITHOUT THE ADMINISTRATION'S PUSH IT SIMPLY REFLECTS THE DEGREE TO WHICH GOVERNMENT HAS BECOME A PARTNER IN BUSINESS VENTURES THE DIRECT COSTS TO THE FEDERAL GOVERNMENT ARE ESTIMATED AT A MERE 19 BILLION THE ENERGY DEPARTMENT ALONE EXPECTS TO SPEND 200 MILLION ANNUALLY TO ENCOURAGE FUEL SWITCHING AND ENERGY EFFICIENCY INDEED THE LARGELY VOLUNTARY NATURE OF THE PLAN MASKS SOME SIGNIFICANT MANDATORY FEATURES ONE OF THE MOST COSTLY ASPECTS WILL BE THE MOVE TO ENCOURAGE MASS TRANSIT AS USUAL THE DISAPPOINTING PERFORMANCE OF PUBLICLY OWNED MASS TRANSIT SYSTEMS IS BLAMED ON A LACK OF SUFFICIENT FUNDING AND THE SUBSIDY GIVEN TO WORKERS IN THE FORM OF FREE PARKING THE TAX CODE WILL BE ALTERED TO TREAT PARKING SPACES AS PERSONAL INCOME TO THE TUNE OF 22 BILLION IN NEW FEDERAL REVENUES ALTHOUGH NOT STRESSED IN THE INITIAL COVERAGE HOUSEHOLD APPLIANCES WILL BE REQUIRED TO ACHIEVE HIGHER LEVELS OF ENERGY EFFICIENCY RAISING THE PRICE OF HOME AIR CONDITIONERS WATER HEATERS STOVES AND EVEN TELEVISION SETS WHY IS THE ADMINISTRATION PUSHING THIS PLAN WHEN MANY HIGHER PRIORITY ISSUES REMAIN UNADDRESSED TO GIVE THEM THE BENEFIT OF THE DOUBT THE PREDICTIONS OF GLOBAL WARMING HAVE BEEN PRETTY SCARY AND IF TRUE WARRANT SOME SORT OF REACTION BUT ARE THEY TRUE DESPITE ITS COMPLEXITY THE GLOBAL WARMING SCARE CAN BE BOILED DOWN TO A FEW ESSENTIAL POINTS THERE IS NO DEBATE OVER THE SIMPLE OBSERVATION THAT CERTAIN GASES IN THE ATMOSPHERE ARE INCREMENTALLY INCREASING DUE TO HUMAN ACTIVITIES SUCH AS FOSSIL FUEL BURNING DEFORESTATION AND AGRICULTURAL PRACTICES SCIENTISTS ALSO AGREE THAT INCREASES IN THESE GASES PRIMARILY CARBON DIOXIDE THE GAS WE ALL EXHALE WITH EVERY BREATH WILL CAUSE A VERY SLIGHT INCREASE IN THE GLOBAL AVERAGE TEMPERATURE THERE REALLY IS NO DISPUTE UP TO THIS POINT THE EARTH IS EXPECTED TO WARM ONE OR TWO DEGREES IN AVERAGE TEMPERATURE OVER THE NEXT CENTURY OR SO DUE TO THE DIRECT EMISSIONS OF ANTHROPOGENIC OR HUMAN GENERATED GASES AFTER THIS POINT TEMPERS GO UP EVEN IF TEMPERATURES DO NOT SOME SCIENTISTS ARGUE THAT FEEDBACK MECHANISMS IN THE CLIMATE SYSTEM PRIMARILY WATER VAPOR AND CLOUDS WILL GREATLY MAGNIFY THIS MARGINAL RISE IN TEMPERATURE RESULTING IN CATASTROPHICALLY RAPID WARMING THOSE ASSERTIONS ARE BASED ON COMPUTER PROGRAMS CALLED GENERAL CIRCULATION MODELS OR GCMS GCMS ARE NOTORIOUSLY BAD AT PREDICTING THE WEATHER FOR THE NEXT MONTH YET THEY ARE BEING USED TO FORECAST THE CLIMATE OF THE NEXT CENTURY LITTLE WONDER THAT MANY RESEARCHERS DISPUTE THE APOCALYPTIC CLAIMS OF RADICAL ENVIRONMENTALISTS IN FACT THE DATA STRONGLY SUPPORT THOSE WHO REJECT THE DOOMANDGLOOM SCENARIOS PRECISE SATELLITE MEASUREMENTS OF THE ENTIRE GLOBE INDICATE NO NET WARMING OVER THE PAST 15 YEARS OF THE TOTAL WARMING ESTIMATED FOR THE PAST CENTURY ABOUT ONE DEGREE FAHRENHEIT MOST OF IT OCCURRED PRIOR TO SIGNIFICANT EMISSIONS OF GREENHOUSE GASES BY MANKIND YET DESPITE THE LACK OF ANY REAL THREAT TO THE PLANET'S CLIMATE MAJOR REDUCTIONS IN GREENHOUSE GASES ARE DEMANDED INTERESTINGLY IN THE MID1970S THERE WAS A SIMILAR DEBATE RAGING OVER CLIMATE AT THAT TIME THE FEAR WAS OF AN IMPENDING ICE AGE RATHER THAN AN INFERNO THIS MIGHT BE AN AMUSING FOOTNOTE OF LITTLE HISTORICAL INTEREST BUT FOR ONE THING THE POLICIES PROPOSED TO SAVE US FROM ICE WERE IDENTICAL TO THOSE NOW BEING PROPOSED TO SAVE US FROM FIRE THE PREDICTIONS HAVE CHANGED BUT THE PRESCRIPTIONS HAVE NOT GOVERNMENT MUST GROW SO THAT ENERGY CONSUMPTION WILL SHRINK MR JEFFREYS IS DIRECTOR OF ENVIRONMENTAL STUDIES AT THE COMPETITIVE ENTERPRISE INSTITUTE IN WASHINGTON SEE RELATED LETTER LETTERS TO THE EDITOR OCEANOGRAPHERS COOL ON GLOBAL WARMING WSJ NOV 10 1993 9310220042 YY93 MM11 9311100180 931005 REVIEW & OUTLOOK EDITORIAL POWER TO THE PEOPLE WE'RE ALWAYS GLAD TO HEAR WHEN SOMEBODY IN WASHINGTON IS EVOLVING INDICATIONS ARE THAT THE LATEST TO ACHIEVE A HIGHER CONSCIOUSNESS IS NONE OTHER THAN ALBERT GORE THE VICE PRESIDENT A SIGNIFICANT PASSAGE IN THE MEMOIRS OF FORMER WHITE HOUSE ECONOMIST BILL NISKANEN RELATES HOW A YOUNG REP GORE SANDBAGGED THE REAGAN EFFORT TO ELIMINATE FEDERAL POWER SUBSIDIES MR GORE WAS CARRYING WATER IN THOSE DAYS FOR THE ALUMINUM SMELTERS AND OTHERS WHO GET ARTIFICIALLY CHEAP POWER FROM THE TENNESSEE VALLEY AUTHORITY BUT NOW HE HAS A NEW CLIENT THE POOR US TAXPAYER WHO IS CONSTANTLY BEING TAPPED TO PAY FOR THIS SORT OF LARGESS SOME MEMBERS OF HIS REINVENTING GOVERNMENT TASK FORCE APPARENTLY BELIEVE TAXPAYERS OUGHT TO BE ALLOWED TO GET THEIR MONEY'S WORTH OUT OF THEIR INVESTMENT IN HOOVER DAM GRAND COULEE AND OTHER FEDERAL DAMS BECAUSE THE NEW DEAL STILL RATTLES ITS CHAINS AROUND THESE HYDROELECTRIC PROJECTS UNCLE SAM FEELS OBLIGED NOW TO GIVE AWAY AT LEAST 2 BILLION WORTH OF ELECTRICITY EVERY YEAR THANKS TO ANOTHER BIT OF DEPRESSIONERA IDEOLOGY MOST AMERICANS ARE DEEMED FIT TO PAY FOR THIS BONANZA BUT NOT TO SHARE IN IT THE CHEAP POWER IS RESERVED FOR PREFERENCE CUSTOMERS MEANING POLITICALLY CORRECT TOWNS WHERE THE LOCAL UTILITY HAPPENS TO BE OWNED EITHER BY A COOP OR THE MUNICIPAL GOVERNMENT THE RESIDENTS OF THESE PLACES SHOULDN'T BE CONFUSED WITH WIDOWS ORPHANS AND IMPOVERISHED TENNESSEANS CHEAP POWER GOES TO SUBSIDIZE THE LIFESTYLES OF THE PLUSH BELTWAY SUBURBS OF VIRGINIA AND THE CASINOS OF LAS VEGAS BY FAR THE BIGGEST CHUNK OF SUBSIDY GOES TO NORTHERN CALIFORNIA WE'VE GOT NOTHING AGAINST PALO ALTO AND THE FOLKS AT STANFORD BUT THIS YEAR THEY'RE GETTING A FIVEMONTH HOLIDAY FROM HAVING TO PAY ANY ELECTRIC BILLS HALF OF CONGRESS JOINS THE RURAL LOBBY ON THE RAMPARTS WHEN ANYBODY PROPOSES REFORMING THESE GIVEAWAYS AND MR GORE WOULD HAVE HIS WORK CUT OUT HE'D ALSO HAVE TO CONTEND WITH THE SURVIVAL INSTINCTS OF THE OCTOPUS ITSELF A VAST EMPIRE COMPRISING TVA BONNEVILLE THREE OTHER REGIONAL POWER MARKETERS THE ENERGY DEPARTMENT THE CORPS OF ENGINEERS THE BUREAU OF RECLAMATION AND MORE THE BUREAUCRACY IS RIDICULOUSLY PADDED A FORMER HEAD OF ONE REGIONAL POWER ADMINISTRATION TELLS US IF THERE WAS EVER AN INDUSTRIAL BRONTOSAURUS THIS ROOSEVELTIAN RELIC IS IT MARKET PRICING IS ALREADY THE WAVE OF THE PRESENT FOR THE REST OF THE UTILITY INDUSTRY HUNDREDS OF NIMBLE ENTREPRENEURIAL POWER PRODUCERS HAVE SPRUNG UP IN THE SHADOWS OF MOTHBALLED NUCLEAR PLANTS AND NOW PROVIDE MOST OF THE NEW ELECTRICITY COMING ON LINE EVEN CONGRESS HAS CAUGHT THE DEREGULATION BUG AND LAST YEAR OPENED UP THE TRANSMISSION GRID TO SPEED THE DAY WHEN THERE'LL BE A COMPETITIVE NATIONAL MARKETPLACE FOR ELECTRICITY ANY IDEA THAT UNITES THE ENVIRONMENTAL DEFENSE FUND THE NATIONAL TAXPAYERS UNION AND THE REAGAN ALUMNI OUGHT TO BE BANKABLE FROM THE POINT OF VIEW OF THE BUDGET DEFICIT MOTHER EARTH AND THE SPAWNING SALMON MARKET PRICING OF FEDERAL POWER MAKES CAPITAL SENSE THE ONLY QUESTION NOW IS WHERE MR GORE STANDS ON HIS PERSONAL EVOLUTIONARY SCALE SEE RELATED LETTER LETTERS TO THE EDITOR WE AGREE POWER TO THE PEOPLE WSJ NOV 10 1993 9310050022 YY93 MM11 9311100178 931025 LETTERS TO THE EDITOR LONE STAR JUSTICE YOU BET YOUR OCT 1 EDITORIAL LONE STAR JUSTICE WAS UNCHARACTERISTICALLY INACCURATE IN DISCUSSING THE INDICTMENT OF TEXAS SEN KAY BAILEY HUTCHISON YOU SAID THE GRAND JURY TURNED OUT TO INCLUDE NO REPUBLICANS AS WIDELY REPORTED IN ALL TEXAS NEWSPAPERS THE JURY FOREMAN SAADI FERRIS WORKED IN THE ADMINISTRATION OF FORMER REPUBLICAN GOV BILL CLEMENTS RAN AS A REPUBLICAN FOR TRAVIS COUNTY SHERIFF AND IS NOW AN INVESTIGATOR FOR THE NONPARTISAN STATE BAR OF TEXAS YOU ALSO CALLED THE INDICTMENT A POLITICALLY MOTIVATED FISHING EXPEDITION HOWEVER MR FERRIS IN REPORTING THE INDICTMENT TO THE JUDGE SAID THE GRAND JURY HAS DELIBERATED ON EACH AND EVERY OCCASION WITH INDEPENDENCE OF POLITICS AND POLITICAL PERSUASION ALL 12 JURORS SIGNED THIS STATEMENT THIS GRAND JURY WAS NOT IMPANELED AS YOU SUGGEST FOR PARTISAN PURPOSES JUST TO INVESTIGATE SEN HUTCHISON OR OTHER POLITICAL FIGURES ON BEHALF OF TRAVIS COUNTY DISTRICT ATTORNEY RONNIE EARLE THE FACT IS THAT IT WAS A REGULAR WORKING GRAND JURY THAT RETURNED MORE THAN 500 CRIMINAL INDICTMENTS INCLUDING FOR EXAMPLE THE CAPITAL MURDER INDICTMENT OF KENNETH ALLEN MCDUFF WE DON'T KNOW WHAT EVIDENCE THE GRAND JURY HEARD THAT LED TO SEN HUTCHISON'S INDICTMENT BUT BY REPORTEDLY TAKING THE FIFTH AMENDMENT THE SENATOR DEPRIVED THE GRAND JURY OF THE CHANCE TO HEAR ANY REBUTTAL OF THAT EVIDENCE IN SEEKING AN INDICTMENT AGAINST THIS REPUBLICAN THE DISTRICT ATTORNEY IS NOT BEING PARTISAN AS YOU IMPLY THE FACT IS THAT HE HAS GAINED INDICTMENTS AGAINST DEMOCRATS IN OFFICE WHO HELD SUCH POSITIONS AS ATTORNEY GENERAL STATE TREASURER SPEAKER OF THE HOUSE STATE SENATOR AND STATE LEGISLATOR HAD THE DISTRICT ATTORNEY WANTED TO USE HIS OFFICE FOR PARTISAN PURPOSES HE COULD HAVE URGED THE INDICTMENT IN APRIL WHEN REPUBLICAN STATE TREASURER EMPLOYEES BROUGHT HIM EVIDENCE ABOUT DESTRUCTION OF RECORDS AN INDICTMENT THEN COULD HAVE DAMAGED MS HUTCHINSON'S PROSPECTS FOR MAY AND JUNE ELECTIONS WHICH SHE EVENTUALLY WON YOU LIKEWISE DO A GREAT DISSERVICE TO THOSE 12 PEOPLE OF TRAVIS COUNTY WHO OBVIOUSLY LABORED LONG AND HARD TO UPHOLD THEIR OATHS AS GRAND JURORS WHEN YOU SUGGEST WITHOUT SUBSTANTIATION THAT THEIR EFFORTS HAVE BEEN LESS THAN GENUINE ABOVEBOARD AND HONEST IT IS YOUR INDICTMENT OF THE GRAND JURORS THAT IS HOLLOW SIMPLY PUT 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 WHILE SHE CHOSE NOT TO TESTIFY ON HER OWN BEHALF BEFORE THE GRAND JURY SHE WILL NOW BE GIVEN THIS OPPORTUNITY WITH 12 OF HER PEERS IN COURT THAT IS LONE STAR JUSTICE AND THE STATE HAS REASON TO BE PROUD OF IT SEE RELATED LETTER LETTERS TO THE EDITOR A JURY TOO GRAND WSJ NOV 10 1993 9310250007 YY93 MM11 9311100174 931013 CORPORATE FOCUS SEAGRAM CO FILLS UP ITS PORTFOLIO WITH ABSOLUT VODKA IN SURPRISE VICTORY IT WRESTS MARKETING RIGHTS FROM RIVAL GRAND MET BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL CALL IT AN ABSOLUT COUP IN A SURPRISE VICTORY SEAGRAM CO HAS SNATCHED AWAY THE MARKETING RIGHTS FOR ABSOLUT VODKA FROM ITS RIVAL GRAND METROPOLITAN PLC THE SWEDISH VODKA KNOWN FOR ITS DISTINCTIVE BOTTLE AND STRIKING ADVERTISEMENTS GIVES SEAGRAM ONE OF THE FEW HOT BRANDS IN THE OTHERWISE DREARY LIQUOR BUSINESS SEAGRAM'S LATEST MOVE ALSO SIGNALS THE COMPANY'S RENEWED COMMITMENT TO THE SPIRITS INDUSTRY EARLIER IN THE YEAR WHEN SEAGRAM INVESTED 700 MILLION IN BUYING 57 OF MEDIA CONGLOMERATE TIME WARNER INC MANY SPIRITS EXPERTS QUESTIONED THE COMPANY'S DEDICATION TO THE LIQUOR BUSINESS GIVEN ABSOLUT'S SUCCESS THE MOVE BY V&S VIN & SPRIT AB SWEDEN'S STATE LIQUOR COMPANY WHICH CONTROLS ABSOLUT STUNNED THE LIQUOR INDUSTRY THE SWEDES BELIEVE THAT TEAMING UP WITH SEAGRAM IMPROVES THE CHANCES FOR EXPANDING ABSOLUT SALES OUTSIDE THE US WHERE THE BRAND REMAINS LITTLE KNOWN HOWEVER MANY ANALYSTS ARE SKEPTICAL AND PREDICT A GLOBAL MARKETING FREEFORALL IN WHICH ABSOLUT'S PREMIUM PERCH IN THE US WILL COME UNDER INTENSE PRESSURE FROM GRAND MET'S SMIRNOFF THE WORLD'S NO 1 SELLING VODKA THE ABSOLUT SHIFT BREAKS UP ONE OF THE MOST SUCCESSFUL CREATIVE TEAMS OF THE PAST DECADE DURING WHICH A LITTLE KNOWN IMPORTED FLAVORLESS LIQUOR WAS MADE ONE OF THE MOST WIDELY RECOGNIZED CONSUMER PRODUCTS ALSO THE NEW DEAL RAISES QUESTIONS AS TO WHETHER SEAGRAM MARKETERS WILL BE ABLE TO MAINTAIN AND CULTIVATE THE BRAND'S HIP IMAGE IN AN ATTEMPT TO ALLAY SUCH CONCERNS SEAGRAM SAID IT PLANS TO RETAIN ABSOLUT'S ADVERTISING AGENCY TBWA ADVERTISING A DIVISION OF OMNICOM GROUP BUT MUCH OF THE CREDIT FOR THE SUCCESS OF ABSOLUT GOES TO GRAND MET EXECUTIVE MICHEL ROUX WHO IS NOT PART OF THE DEAL MICHEL ROUX IS THE ARCHITECT OF WHAT ABSOLUT HAS BECOME SAID MICHELLE PROUD AN ANALYST WITH NATWEST SECURITIES MR ROUX REMAINS PRESIDENT AND CHIEF EXECUTIVE OF CARILLON IMPORTERS THE GRAND MET UNIT THAT HANDLED ABSOLUT IN THE US HOWEVER MR ROUX'S FUTURE IS UNCERTAIN AND THERE IS SPECULATION THAT HE WILL JOIN SEAGRAM TO CONTINUE HIS ASSOCIATION WITH ABSOLUT IN AN INTERVIEW HE SAID WHAT THE FUTURE WILL BRING WE WILL HAVE TO SEE I ALWAYS LEAVE THE DOOR OPEN TO EVERYTHING SEAGRAM SAID IT MAY TAP TBWA FOR ADVERTISING IDEAS FOR ITS OTHER BRANDS WHICH INCLUDE CHIVAS REGAL MARTELL COGNAC AND CAPTAIN MORGAN'S SPICED RUM WE'RE SERIOUSLY CONSIDERING USING THEM FOR SOME OTHER BRANDS SAID EDWARD F MCDONNELL EXECUTIVE VICE PRESIDENT OF SEAGRAM SEAGRAM'S EARLIER ATTEMPT TO EMULATE THE SUCCESS OF ABSOLUT VODKA FLOPPED WHEN SEAGRAM'S AD CAMPAIGN FOR ITS WYBOROWA VODKA FELL FLAT SEAGRAM STILL CARRIES THE IMPORTED POLISH VODKA BUT IS DOING LITTLE TO PROMOTE IT LIQUOR INDUSTRY SOURCES SAID THAT SEAGRAM ACTUALLY TURNED DOWN A CHANCE TO MARKET ABSOLUT IN THE 1970S A SEAGRAM SPOKESMAN SAID HE WASN'T AWARE OF SUCH A DECISION THE NEWS OF THE SURPRISING SWITCH SENT GRAND MET'S SHARE PRICE DOWN 1125 TO 25 ON NEW YORK STOCK EXCHANGE COMPOSITE TRADING AND SEAGRAM'S STOCK UP 375 TO 26375 I'M STUNNED SAID FRANK WALTERS A RESEARCHER AT THE BEVERAGE FIRM IMPACT IF ITS NOT BROKE YOU DON'T FIX IT INDEED ABSOLUT HAS PULLED OFF THE DIFFICULT TASK OF REMAINING POPULAR WITH THE FASHIONABLE CROWD THAT TYPICALLY FLITS OFF TO NEW PRODUCTS EACH SEASON IT'S THE MOST POPULAR VODKA HERE SAID STEWART WILSON ENTERTAINMENT DIRECTOR OF THE CHINA CLUB A MANHATTAN WATERING HOLE KNOWN FOR ITS FASHIONMODEL CLIENTELE PEOPLE ASK FOR IT BY NAME KYLE FINCH A BARTENDER AT THE TRENDY RESTAURANT ODEON CONCURS XEROX IS THE COPY MACHINE AND ABSOLUT IS THE VODKA SAID MR FINCH SINCE 1979 UNDER CARILLON ABSOLUT GREW INTO THE NINTH MOST POPULAR LIQUOR BRAND IN THE US WITH SALES OF 27 MILLION CASES LAST YEAR WHILE ABSOLUT'S GROWTH HAS SLOWED IT CONTINUES TO OUTPACE THE INDUSTRY BUT VIN & SPRIT CHAIRMAN CLAES DAHLBAECK SAID THE SWEDISH COMPANY FRETTED ABOUT A POTENTIAL CONFLICT OF INTEREST ESPECIALLY IN MARKETS OUTSIDE THE US IF GRAND MET CONTINUED TO DISTRIBUTE BOTH ABSOLUT AND SMIRNOFF THE OVERALL PROPOSAL FROM SEAGRAM WAS MORE FAVORABLE FOR US BOTH FINANCIALLY AND CONSIDERING THAT POTENTIAL CONFLICT OF INTEREST MR DAHLBAECK SAID WE JUST DON'T ACCEPT THAT SAID A GRAND MET SPOKESWOMAN NOTING THAT BOTH SMIRNOFF AND ABSOLUT PROSPERED IN THE US THE ANNOUNCEMENT CAUGHT GRAND MET OFF GUARD AND LEFT THE LIQUOR GIANT ANGRY IN A STATEMENT IT CALLED THE SWEDES' MOVE SURPRISING AND SAID THAT IT WAS CONSIDERING VARIOUS OPTIONS ASKED IF THE COMPANY IS CONTEMPLATING A LAWSUIT THE GRAND MET SPOKESWOMAN SAID WE'RE NOT RULING ANYTHING OUT MEANWHILE ANALYSTS EXPECT GRAND MET TO STEP UP PROMOTION OF ITS REMAINING VODKA BRANDS SMIRNOFF ALONE SELLS 14 MILLION CASES A YEAR WORLDWIDE MORE THAN TRIPLE ABSOLUT'S VOLUME AND IS THE BESTSELLING VODKA NOT ONLY IN THE US BUT IN NINE OF THE 12 EUROPEAN COMMUNITY MEMBER COUNTRIES THE SWEDISH GOVERNMENT IS TURNING TO SEAGRAM TO TAKE ADVANTAGE OF THE COMPANY'S GROWING INTERNATIONAL NETWORK TWELVE YEARS AGO 80 OF THE COMPANY'S SALES AND ALL OF ITS PROFITS CAME FROM THE US TODAY MORE THAN HALF OF ITS SALES AND ABOUT 80 OF ITS SPIRITS PROFITS COME FROM ITS OVERSEAS BUSINESS SEAGRAM HAS ONE THE BEST DISTRIBUTION NETWORKS FOR LIQUOR BRANDS IN THE WORLD BUT SEAGRAM'S BIGGEST EDGE OVER GRAND MET IS IN REGIONS SUCH AS ASIA AND SOUTH AMERICA WHERE WHITE SPIRITS LIKE VODKA ARE LESS POPULAR THAN SOCALLED BROWN SPIRITS SUCH AS COGNAC AND WHISKEY ABSOLUT REPRESENTS A BREAKTHROUGH AS SEAGRAM'S FIRST GLOBAL DISTRIBUTION AGREEMENT FOR A BRAND IT DOESN'T CONTROL THE CANADIAN COMPANY ALREADY HOLDS RIGHTS TO A SPATE OF EXTERNAL PRODUCTS IN VARIOUS COUNTRIES FROM JACK DANIEL'S WHISKEY IN FRANCE AND BRAZIL TO STOLICHNAYA VODKA IN GREECE AND VENEZUELA TERMS OF VIN & SPRIT'S NEW PACT WITH SEAGRAM WEREN'T DISCLOSED BUT MOST ANALYSTS BELIEVE THE GIANT CANADIAN DRINKS GROUP SWALLOWED A LESS LUCRATIVE DEAL THAN THE 50/50 SPLIT OF PROFITS FROM ABSOLUT THAT GRAND MET IS WIDELY BELIEVED TO HAVE POCKETED UNDER ITS DISTRIBUTION AGREEMENT IN AN INTERVIEW EDGAR BRONFMAN JR SEAGRAM'S PRESIDENT AND CHIEF OPERATING OFFICER INSISTED IT WOULD BE INACCURATE TO SAY SEAGRAM CAME IN AND MADE A FANTASTIC OFFER FOR ABSOLUT THAT VIN & SPRIT SIMPLY COULDN'T REFUSE BUT MS PROUD THE NATWEST SECURITIES ANALYST SAID I SUSPECT THAT SEAGRAM OFFERED TO TAKE A LOWER CUT OF THE DISTRIBUTION PROFIT THAN GRAND MET DID MS PROUD ALSO QUESTIONED THE VIABILITY OF A PREMIUM VODKA BRAND OUTSIDE THE US IN THE REST OF THE WORLD PEOPLE DO NOT SEE A REASON TO PAY A PREMIUM FOR A PRODUCT THAT IS COMPLETELY TASTELESS STEPHEN D MOORE IN STOCKHOLM AND NICHOLAS BRAY IN LONDON CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR BOLD MARKETING TOOK THEIR BREATH AWAY WSJ NOV 10 1993 9310130118 YY93 MM11 9311100172 931012 BUSINESS WORLD ZONING GETS ANOTHER HEARING IN HOUSTON BY TIM W FERGUSON HOUSTON THE NATION'S FOURTH LARGEST CITY SUFFERS FROM POSTTRAUMATIC STRESS THAT IS THE BEST WAY TO UNDERSTAND WHY UNLESS VOTERS SAY NO NEXT MONTH OR IN A SECOND REFERENDUM IN JANUARY ZONING LOOMS ON ITS BOUNDLESS HORIZON THUS WOULD END AMERICA'S LAST URBAN HOLDOUT FROM THE KEYSTONE OF CONTEMPORARY LANDUSE REGULATION ZONING AS IT HAS BEEN KNOWN IN THE US SINCE THE EARLY 1900S AND AS EVEN MORE STRINGENTLY PRACTICED IN EUROPE IS A SURPRISINGLY DISCREDITED PRACTICE GIVEN ITS UNIVERSALITY THE LEGALLY ENFORCED SEPARATION OF RESIDENTIAL COMMERCIAL AND INDUSTRIAL USES IS ATTACKED FROM BOTH THE POLITICAL LEFT AND RIGHT URBANOLOGISTS COMPLAIN IT STIFLES THE SERENDIPITY AND INCREASES THE ISOLATION OF CITY LIFE COMMISSIONS ESTABLISHED UNDER PRESIDENTS REAGAN AND BUSH FOUND IT BOOSTED HOUSING COSTS INDEED PROTECTION OF HOME VALUES IS THE PRIMARY SELLING POINT IN HOUSTON AS ELSEWHERE OVER 65 YEARS OF DEBATE AND TWO PREVIOUS ELECTIONS IN 1948 AND 1962 THE BAYOU CITY HAS OPTED INSTEAD FOR A SYSTEM OF PRIVATE CONTROLS OR DEED RESTRICTIONS THAT COVER MOST NEIGHBORHOODS ZONING BACKERS MAINTAIN THAT GAPING HOLES IN THOSE COVENANTS INVITE UNDESIRABLE MIXING AND THAT A HOUSTONSTYLE VERSION OF CONTROLS CAN ADDRESS THE OBJECTIONABLE WITHOUT SACRIFICING DYNAMISM OPPONENTS SAY IT OPENS THE DOOR TO THE HASSLES AND INFLUENCEPEDDLING THAT TYPIFY INTERACTION WITH METROPOLITAN GOVERNMENTS BUT ON THE SYMBOLISM OF THE RESULT FEW CAN DISAGREE IT IS A REFERENDUM ON THE BARELY FETTERED AND CUSHIONED CAPITALISM LONG ASSOCIATED WITH HOUSTON FOR DECADES AFTER WORLD WAR II THE CITY BASICALLY BARRELED ALONG ON DERRINGDO FORTUNES WERE MADE AND LOST AND MADE AGAIN WITH GUMPTION AS COLLATERAL THE STORY OF GEORGE BUSH'S YOUNG ADULTHOOD AS IT WAS TOLD DURING HIS YEARS IN NATIONAL OFFICE ILLUSTRATED THIS SIDE OF HOUSTON IRONICALLY IT WAS DURING THE 1980S THAT THE CITY IN WHICH MR BUSH HAD THRIVED TOOK A NASTY FALL THE LATE1970S ENERGY BOOM HAD SUPERCHARGED IT AND THE SUBSEQUENT COLLAPSE OF OIL PRICES BROUGHT A VIRTUAL DEPRESSION BY 1986 AT THE TIME THE DOMINANT INDUSTRY ACCOUNTED DIRECTLY FOR ABOUT A QUARTER OF THE LOCAL ECONOMY WITH OIL DECIMATED COMMERCIAL RENTS AND SPECULATIVE CONSTRUCTION SPIRALED SOUTH AS WELL AS SOME ZONING BACKERS EXPLAIN IT THOSE ROLLER COASTER YEARS LEFT BUOYANT HOUSTONIANS SHELL SHOCKED THE BUILDING BOOM BEQUEATHED TOWERS SHADOWING SOME SWANK SINGLEFAMILY NEIGHBORHOODS THE BUST DRIED UP TENANTS AND CAUSED A CHAIN REACTION THROUGH THE REALESTATE MARKET MIDDLECLASS AREAS FELT VULNERABLE TO USES PREVIOUSLY ASSOCIATED WITH POOR DISTRICTS WHICH IN TURN WERE SEEN HOSTING EVER MORE NOXIOUS ESTABLISHMENTS THESE INCOMPATIBLE USES INCLUDE BARS AND OTHER LIQUOR OUTLETS SLEAZY MOTELS AUTO REPAIRERS COIN LAUNDRIES TATTOO PARLORS AND SMALL FACTORIES AS ELSEWHERE A WAVE OF IMMIGRANTS HAS DISCONCERTED MANY CITIZENS OPPONENTS OF ZONING NEVERTHELESS ARE BOOSTERS OF THE HOUSTON THAT WAS AND IS THEY MAINTAIN THAT FREEDOM TO BUILD AND OPERATE ATTRACTS ENTERPRISE IN PART BY KEEPING RENTS LOW AT THE SAME TIME THEY SAY MAKING IT EASIER TO DO BUSINESS FOSTERS JOBS THAT ARE THE BEST PROTECTOR OF RESIDENTIAL VALUES ZONING FOES WHO MUST OVERCOME A MOMENTUM FOR CONTROLS THAT GOT THE CITY COUNCIL MOVING TOWARD ZONING IN 1990 ARE A THREEPRONGED FORCE THE FINANCIAL MUSCLE COMES FROM LONGTIME LOCAL DEVELOPERS WHO SAY THEY WANT OR FIGURE THE PUBLIC WANTS SOME ADDED STRICTURES BUT NOT THE SORT THE COUNCIL HAS PASSED SOME OF THE BIGGEST HOUSTON BUILDERS SUPPORT ZONING HOWEVER MUCH OF THE GRASSROOTS OPPOSITION INCLUDING A PETITION DRIVE THAT FORCED THE ISSUE ONTO THE BALLOT IS THE WORK OF THE HOUSTON PROPERTY RIGHTS ASSOCIATION WHICH RESISTS GOVERNMENT GROWTH GENERALLY ITS PRINCIPALS SUCCEEDED IN BLOCKING A MONORAIL SCHEME NOT LONG BACK THE ZONING FIGHT OCCURS JUST AS A TERMLIMITS MEASURE IS KICKING IN REMOVING SEVERAL MEMBERS OF THE CITY COUNCIL INCLUDING THE TOP ZONING PROPONENT AND GENERALLY RAISING POPULIST SPIRITS FINALLY SEVERAL BLACK AND HISPANIC FIGURES HAVE CONDEMNED THE PLAN AS A KILLER OF LOWOVERHEAD OPPORTUNITIES FOR MINORITIES HALF THE CITY AND THEREFORE OF RACIST EFFECT IF NOT INTENT BLACK OPPOSITION WAS CRITICAL IN DEFEATING THE 1962 MEASURE BUT SOME PROMINENT NONANGLOS INCLUDING COUNCIL MEMBERS SAY ZONING IS MOST NEEDED NOW IN THE POOREST AREAS HOUSTONIANS MAY BE REACTING TO RECENT ECONOMIC TRAUMA BUT HISTORIES SHOW THE BATTLE LINES HAVE HARDLY SHIFTED OVER THE YEARS WHERE TOP DEVELOPERS HAVE SWITCHED SIDES CITING CIVIC GOOD FOES ASCRIBE THEIR ACTION TO A DESIRE TO RESTRICT SUPPLY WHILE CUTTING SPECIAL DEALS FOR THEMSELVES THE SQUABBLE AMONG THE BUILDING FRATERNITY IS ABOUT THE ONLY MAJOR BUSINESS INVOLVEMENT IN THE ISSUE THE CHAMBER OF COMMERCE IS STAYING NEUTRAL AFTER ENDORSING THE 1962 ATTEMPT ZONING FOES LIKE TO CITE HOUSTON'S COST ADVANTAGES OVER COMPETING CITIES RESIDENTIAL RENTS ARE 15 LESS THAN IN DALLAS WHICH IS NOW RATHER HEAVILY ZONED KEEPING SHELTER PRICES LOW HOUSTON'S ARE CHEAPEST OF THE 20 BIGGEST US METROPOLITAN AREAS HELPS FUEL THE REST OF THE ECONOMY FOR WHATEVER REASON HOUSTON OUTPERFORMED DALLAS IN PERSONALINCOME GROWTH IN THE LATEST FIVEYEAR PERIOD SEE CHART EVEN THOUGH ITS POPULATION GREW LESS RAPIDLY MOREOVER EASE OF TRANSITION CAN KEEP VIBRANT PARTS OF A CITY THAT WOULD OTHERWISE STAGNATE AND DECAY ZONING ADVOCATES THOUGH CLAIM MASSIVE LOSSES IN HOME VALUES WHERE NEIGHBORHOODS ARE POCKMARKED BY COMMERCE IN HOUSTON INFILL HOUSING INCLUDING GEORGE BUSH'S NEW PLACE IS RISING ON FORMERLY LARGE LOTS NEAR COMMERCIAL CORES NEVER MIND THE SKYSCRAPERS ALONG THE CITY'S PERIPHERY RESIDENCES ARE REPLACING OFFICE PARKS THAT NEVER FILLED AFTER THE OIL CRASH WHAT STANDS OUT MOST IN DRIVING AROUND HOUSTON HOWEVER IS HOW MUCH IT RESEMBLES OTHER CITIES PARTICULARLY OF ITS AGE AND PART OF THE COUNTRY THE SCENE IS A LITTLE BUSY IN PLACES BUT NONZONING IS NOT A GOBLIN THAT LEAPS OUT EVERY FEW BLOCKS TRADITIONALISTS SAY THE CITY'S APPROACH IS LARGELY TO CREDIT FOR WHAT ONE DOESN'T SEE SIZABLE SLUMS BLIGHTED AREAS CERTAINLY EXIST BUT NOT ON A PAR WITH CHICAGO OR PHILADELPHIA OR EVEN ATLANTA ALSO STRIKING TO A VISITOR IS THE PAUCITY OF GRAFFITI AS HOUSTON GROWS AND ATTRACTS NEWCOMERS FROM ZONED CITIES AS WELL AS EXPANDS ITS OWN NEW CLASS OF CONSULTANTS AND PLANNERS IT CAN EXPECT TO LOSE SOME OF ITS FRONTIER HEART YET THE RECORD ELSEWHERE SUPPORTS SUSPICION THAT A ZONING CODE IS A PARTICULARLY INTRUSIVE INROAD THE LOOMING LAST STAND MATTERS AND NOT JUST HERE AS AN URBANIZED NATION LOOKS FOR WAYS TO BRING PEOPLE CLOSER TO THEIR PURSUITS THE MARKETPLACE IS A FOUNT OF IDEAS IS HOUSTON AFTER ALL ITS JOLTS INCLINED TO REMAIN LIBERTY'S LABORATORY SEE RELATED LETTER LETTERS TO THE EDITOR A SHOT IN THE DARK ABOUT HOUSTON ZONING WSJ NOV 10 1993 9310120077 YY93 MM11 9311090166 931109 INTERNATIONAL AS DOOR OPENS TO ARABISRAELI MARKETS SMALL FIRM DELVES INTO CONSUMER QUIRKS BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL TEL AVIV SINCE ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION SIGNED AN ACCORD GRANTING PALESTINIAN SELFRULE IN THE WEST BANK AND THE GAZA STRIP MOST OF THE ISRAELI BUSINESS COMMUNITY HAS BEEN THINKING BIG BUT ONE COMPANY HAS MADE A BUSINESS OF CONCENTRATING ON SMALL DETAILS AND CONSUMER QUIRKS INFOPROD RESEARCH MIDDLE EAST LTD ISN'T THE ONLY FIRM IN ISRAEL OFFERING RESEARCH AND ANALYSIS OF THE ARAB AND ISRAELI MARKETS BUT EVEN ITS RIVALS SAY THAT WHILE THEY'RE COLLECTING DATA ON GENERAL ECONOMIC TRENDS IN COUNTRIES SUCH AS SAUDI ARABIA INFOPROD CAN TELL CLIENTS EVERYTHING FROM WHAT KIND OF WOMEN'S UNDERGARMENTS SELL BEST THERE TO THE MOST POPULAR BRAND OF CHEESE AT THE LOCAL SUPERMARKET DO YOU WANT TO KNOW THE MARKET SHARE OF CHEESE SOLD IN PORTIONS TINS SLICES TUBS OR JARS SAYS 34YEAROLD GIL FEILER WHO RUNS INFOPROD FROM A SMALL OFFICE IN A DOWNTOWN TEL AVIV HIGHRISE I CAN DO IT BY REGION OR IF YOU NEED MORE INFORMATION BREAK IT DOWN BY SUPERMARKET SELFSERVICE OR GROCERY STORE INFOPROD FOUNDED IN 1991 GREW OUT OF A COLLABORATION BETWEEN MR FEILER AND MOSHE WERTHEIM PRESIDENT OF THE INDEPENDENT COMPANY THAT BOTTLES COCACOLA IN ISRAEL THEY MET THREE YEARS AGO WHEN MR FEILER THEN A LECTURER AT TEL AVIV UNIVERSITY WAS HIRED TO DO RESEARCH ON THE ARAB BOYCOTT FOR A GROUP OF LEADING ISRAELI BUSINESSES INCLUDING COCACOLA WHICH HAS HUGE OPERATIONS IN THE COUNTRY WHEN THE PROJECT ENDED MR WERTHEIM APPROACHED MR FEILER ABOUT WORKING TOGETHER ON ANOTHER MATTER A FORMER MOSSAD AGENT AND ACTIVE MEMBER OF THE RIGHTWING LIKUD PARTY MR WERTHEIM SAYS HE HAD CONCLUDED THAT THERE WAS GOING TO BE A PALESTINIAN STATE HE WANTED MR FEILER TO COLLECT DATA ON HOW A CHANGE IN THE POLITICAL MAP WOULD AFFECT ISRAELI BUSINESS THE TWO MEN QUICKLY REALIZED THAT OTHER ISRAELI COMPANIES MIGHT BE INTERESTED IN A SIMILAR SERVICE AND DECIDED TO GO INTO BUSINESS MR WERTHEIM PUT UP HIS OWN MONEY WELL INTO THE SIX FIGURES HE SAYS AND INFOPROD WAS BORN IN THE LAST SIX MONTHS INFOPROD HAS ACTED AS MATCHMAKER IN 20 JOINT VENTURES BETWEEN ISRAELI AND PALESTINIAN COMPANIES IT ALSO HAS DONE DETAILED STUDIES OF THE PHARMACEUTICAL AND CEMENT MARKETS IN THE MIDDLE EAST INFOPROD WILL SOON PUBLISH A DIRECTORY OF BUSINESSES IN THE WEST BANK AND THE GAZA STRIP THAT MR WERTHEIM BOASTS IS MORE COMPREHENSIVE THAN THE LISTINGS KEPT BY THE ISRAELI CIVIL ADMINISTRATION WHEN PSAGOT A SUBSIDIARY OF BANK LEUMI AND UNION BANK OF ISRAEL DECIDED IN MAY TO ESTABLISH A 500 MILLION MUTUAL FUND FOCUSING ON INVESTMENTS IN ISRAELI COMPANIES BEST ABLE TO BENEFIT FROM PEACE IT TURNED TO INFOPROD THE FUND PSAGOT VIEW TO PEACE WANTED INFOPROD TO HELP IDENTIFY THE SECTORS AND BUSINESSES IN THE ARAB MARKET THAT ARE MOST LIKELY TO DO BUSINESS WITH ISRAEL ACCORDING TO DANIEL SILBIGER DEPUTY GENERAL MANAGER OF PSAGOT A US AVIATION COMPANY HIRED INFOPROD TO GAUGE THE EXTENT OF INTERNAL AVIATION IN THE MIDDLE EAST AND A GERMAN INDUSTRIAL FIRM INVOLVED IN NEGOTIATIONS WITH A MOROCCAN CONCERN HAD INFOPROD PREPARE A DETAILED 15YEAR CORPORATE HISTORY OF THE MOROCCAN COMPANY IN A WAY INFOPROD SPECIALIZES IN HIGHTECH DETECTIVE WORK THE INFORMATION IS ALL OUT THERE THE PROBEM IS TAPPING IT PROPERLY SAYS MR WERTHEIM INFOPROD CAN ACCESS MORE THAN 90 ARABLANGUAGE BUSINESS DIRECTORIES AND TENS OF THOUSANDS OF COMPUTER DATABASES WORLDWIDE SPECIALIZING IN ECONOMICS BUSINESS SCIENCE AND TECHNOLOGY MR FEILER WHO IS FLUENT IN ARABIC AND THE EIGHT STAFF MEMBERS CONSTANTLY REVIEW THE ARABIC GENERAL AND TECHNICAL PRESS AND UPDATE THE INFORMATION DAILY IN THE INFOPROD DATABASE TO MONITOR CHANGES IN THE PALESTINIAN AND ARAB ECONOMIES THE COMPANY ALSO USES MORE UNUSUAL METHODS TO COMPILE LISTS OF POTENTIAL PARTNERS FOR BUSINESS DEALS IT INTERVIEWS LOCAL MONEYCHANGERS TO SEE WHO NEEDS CAPITAL COLLECTS ADVERTISEMENTS RUN BY ARAB AUDITING AND INSURANCE FIRMS AND PERUSES REGISTRATION FORMS REQUIRED OF COMPANIES THAT WANT TO IMPORT RAW MATERIALS INFOPROD HOPES TO JOIN FORCES WITH ONE OR MORE OF THE EUROPEAN US AND ISRAELI INVESTMENT FIRMS THAT HAVE APPROACHED IT ABOUT SETTING UP A FUND TO INVEST IN BUSINESS PROJECTS IN THE WEST BANK AND GAZA ISRAEL AND THE ARAB WORLD IN THE MEANTIME SAYS MR FEILER I CAN GIVE YOU THE TELEPHONE NUMBER OF A SAUDI ARABIAN COMPANY THAT NEEDS TO IMPORT 10000 LADIES' NIGHTGOWNS FAST SOME RIVALS SAY THE COMPANY DOESN'T HAVE THE BEST GRASP OF THE BIG ECONOMIC PICTURE ELI SAGI A SENIOR DIRECTOR AT ECONOMIC MODELS LTD AN ECONOMIC CONSULTING FIRM IN TEL AVIV SAYS INFOPROD HAS CARVED OUT A POTENTIALLY LUCRATIVE NICHE BUT BELIEVES THAT ISN'T THE SAME AS DOING ECONOMIC ANALYSIS OF BUSINESS TRENDS INFOPROD'S STRENGTH IS IN COLLECTING INFORMATION BUT THEY ARE SO FOCUSED ON THE MICRO THAT I DON'T KNOW IF THEY HAVE THE NECESSARY PERSPECTIVE TO EVALUATE WHAT IT ALL MEANS SAYS MR SAGI THAT'S NOT HOW MR FEILER SEES IT WITHOUT SPECIFICS HE SAYS YOU CAN'T DO BUSINESS 9311090164 931109 INTERNATIONAL HONG KONG'S GDP ROSE 51 HONG KONG HONG KONG'S GROSS DOMESTIC PRODUCT EXPANDED 51 IN REAL TERMS DURING THE SECONDQUARTER FROM A YEAR EARLIER THE GOVERNMENT SAID IN A PRELIMINARY ESTIMATE GROSS DOMESTIC PRODUCT GREW BY 54 IN THE FIRSTQUARTER OF 1993 ACCORDING TO A REVISED ESTIMATE RELEASED YESTERDAY PREVIOUSLY THE GOVERNMENT HAD PUT THE FIRSTQUARTER GROWTH RATE AT 53 9311090163 931109 AMERICA WEST'S OCTOBER TRAFFIC PHOENIX AMERICA WEST AIRLINES SAID ITS TRAFFIC IN OCTOBER ROSE 19 TO 970718000 REVENUE PASSENGER MILES FROM 815502000 A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER CARRIED ONE MILE LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED ROSE TO 663 FROM 555 FOR THE FIRST 10 MONTHS AMERICA WEST'S TRAFFIC FELL 72 TO 9306766000 REVENUE PASSENGER MILES FROM 10033843000 A YEAR EARLIER LOAD FACTOR ROSE TO 652 FROM 614 9311090162 931109 TAYLOR DEVICES WINS CONTRACT NORTH TONAWANDA NY TAYLOR DEVICES INC SAID IT RECEIVED A 49 MILLION CONTRACT FOR ITS NEW EARTHQUAKE SHOCK ABSORBERS FROM THE COUNTY OF SAN BERNARDINO CALIF TAYLOR WHICH HAD SALES OF 53 MILLION FOR THE YEAR ENDED MAY 31 WILL PROVIDE 233 TAYLOR FLUID VISCOUS DAMPERS TO PROTECT BUILDINGS IN THE COUNTY'S MEDICAL CENTER IN COLTON CALIF EACH DAMPER WILL PROVIDE 150 TONS OF ABSORPTION FORCE AND CAN MOVE UP TO 48 INCHES DURING AN EARTHQUAKE OF 85 ON THE RICHTER SCALE 9311090161 931109 MITCHELL ENERGY GAS DISCOVERY THE WOODLANDS TEXAS MITCHELL ENERGY & DEVELOPMENT CORP SAID ITS NEW NATURALGAS DISCOVERY WELL IN LEA COUNTY NM TESTED AT A DAILY RATE OF 38 MILLION CUBIC FEET OF GAS ON A 23/64INCH CHOKE MITCHELL IS THE OPERATOR OF THE WELL AND IT OWNS A 5625 INTEREST THE OTHER OWNERS ARE SANTA FE ENERGY RESOURCES INC 25 AND MARALO INC 1875 9311090160 931109 COMAIR PASSENGER TOTALS INCREASE CINCINNATI COMAIR HOLDINGS INC SAID 243428 PASSENGERS BOARDED ITS REGIONAL AIRLINE IN OCTOBER UP 57 FROM 230342 A YEAR EARLIER REVENUE PASSENGER MILES A MEASURE OF ONE PAYING PASSENGER FLOWN ONE MILE INCREASED 197 TO 633 MILLION FROM 529 MILLION IN OCTOBER 1992 COMAIR HOLDINGS IS THE PARENT OF COMAIR INC THE DELTA CONNECTION CARRIER BASED IN CINCINNATI AND ORLANDO FLA 9311090159 931109 CMS ENERGY TORCO REACH PACT DEARBORN MICH CMS ENERGY CORP AND TORCO HOLDINGS INC SAID THEY HAVE AGREED TO JOINTLY MARKET NATURAL GAS IN CHICAGO AND NORTHERN ILLINOIS CMS A DIVERSIFIED ENERGY COMPANY WILL PROVIDE CHICAGOBASED TORCO WITH 100 OF ITS NATURAL GAS REQUIREMENTS AND ASSIST TORCO IN INCREASING ITS SHARE OF THE ILLINOIS NATURALGAS MARKET TORCO IS A CLOSELY HELD ENERGY MARKETING COMPANY THAT SELLS FUEL OIL NATURAL GAS AND ELECTRICAL POWER 9311090158 931109 CANADIAN HOUSING STARTS RISE OTTAWA CANADIAN HOUSING STARTS ROSE 55 IN OCTOBER FROM SEPTEMBER TO A SEASONALLY ADJUSTED ANNUAL RATE OF 166000 UNITS CANADA MORTGAGE AND HOUSING CORP A GOVERNMENT AGENCY SAID THE CORPORATION PREDICTED ONLY MODERATE GAINS IN CONSTRUCTION ACTIVITY IN THE COMING MONTHS IT SAID A WEAK JOB MARKET WILL CONTINUE TO DAMP HOUSING DEMAND 9311090157 931109 MARGARETTEN LOAN PRODUCTION PERTH AMBOY NJ MORTGAGE BANKER MARGARETTEN FINANCIAL CORP SAID ITS TOTAL LOAN PRODUCTION WAS 11 BILLION IN OCTOBER UP 39 FROM A YEAR EARLIER LOAN APPLICATIONS ROSE 24 TO 12 BILLION MARGARETTEN'S SERVICING PORTFOLIO WAS 154 BILLION AT OCT 31 COMPARED WITH 133 BILLION A YEAR EARLIER 9311090156 931109 SONGS IN THEIR HEARTS THESE OLD TROUPERS SHINE IN TINSELTOWN THE HOLLYWOOD COMEDY CLUB KEEPS VAUDEVILLE BITS ALIVE JUST OFF SUNSET BOULEVARD BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD AN OLD MAN IN A COWBOY HAT AND RHINESTONESTUDDED DENIM JACKET WANDERS PAST THE OTHER SENIOR CITIZENS IN THE AUDITORIUM PEERING THROUGH THICK LENSES AS HE HUNTS FOR THE SHERIFF'S STAR THAT HAS FALLEN OFF HIS COSTUME MR BERLE HAS LOST HIS STAR COMES AN ANNOUNCEMENT FROM THE STAGE IF ANYONE HAS FOUND IT PLEASE RETURN IT TO MR BERLE MR BERLE AS IN MILTON WELL NO AS IN PHIL MILTON'S 93YEAROLD BROTHER PHIL BERLE MAY NOT HAVE ACHIEVED THE LEVEL OF FAME HIS BROTHER MR TELEVISION DID IN THE 1950S BUT HERE AT THE MONTHLY GATHERINGS OF THE HOLLYWOOD COMEDY CLUB HE IS STILL TREATED LIKE TINSELTOWN ROYALTY THOUGH THE CLUB'S MEMBERSHIP WOULD GET SCARCELY A NOD OF RECOGNITION FROM FOLKS ON THE HOLLYWOOD STARLINE BUS TOUR EVERY PERSON ON THE ROSTER HAS HAD SOME SORT OF BRUSH WITH FAME WHETHER AS CHILD STARS CHARACTER ACTORS OR SIMPLY RELATIVES OF CELEBRITIES MEMBERS OF THE HOLLYWOOD COMEDY CLUB AND ITS SISTER LADIES' COMEDY CLUB WERE BIT PLAYERS IN SHOW BUSINESS BUT TODAY IN A MUSTY AUDITORIUM A BLOCK FROM SUNSET BOULEVARD THE SPOTLIGHT IS ON THEM LET THE BIG CELEBRITIES TAKE THEIR MILLIONS AND SLIP INTO SECLUSION AS NORMA DESMOND DID IN THE FILM SUNSET BOULEVARD SO LONG AS THE CLUBS' OCTOGENARIANS CAN ZIP UP A SEQUINED DRESS OR DON A TOP HAT AND DO A TAP DANCE A GOOD PART OF HOLLYWOOD'S GOLDEN AGE WILL SURVIVE DUSTING OFF ROUTINES THAT MANY LEARNED IN VAUDEVILLE THE OLDSTERS AT THE COMEDY CLUB GATHER TO SING DANCE AND KEEP THEIR MEMORIES ALIVE TONIGHT'S MASTER OF CEREMONIES IS BETTY EGAN WESTMORE A PETITE 86YEAROLD WITH JEWELED BUTTERFLYSHAPED COMBS IN HER RED HAIR A FLOWING GREEN CAPE AND A WHITE KNEELENGTH SKIRT THAT SHOWS OFF HER SHAPELY DANCER'S LEGS MRS WESTMORE A ONETIME CHILD STAR WHO PLAYED WITH MARY PICKFORD IN LITTLE LORD FAUNTLEROY AND LATER MARRIED INTO THE WESTMORE FAMILY OF HOLLYWOOD MAKEUP MEN DOES A LITTLE JIG AS SHE AND THE OTHER WOMEN IN THE ROOM JOIN IN THEIR ANTHEM WE ARE THE LADIES OF THE COMEDY CLUB WE'D LIKE TO GREET YOU WITH A KISS AND A HUG WHAT FOLLOWS IS A VARIETY SHOW THE LIKES OF WHICH HASN'T GRACED A STAGE SINCE ED SULLIVAN WENT OFF THE AIR CHARLIE JONES WOWS THEM WITH A SOULFUL RENDITION OF OL' MAN RIVER GINGER LEE I WAS MISS BURBANK SHE TELLS A NEWCOMER UNFAMILIAR WITH HER CREDITS PERFORMS HER IMITATION OF A MECHANICAL DOLL CLAD IN GOLDILOCKS TRESSES AND A SUNDAYSCHOOL DRESS THE SHOWSTOPPER IS HARMONICA PLAYER MICHAEL GRAYSON 67 WHO DOES GERSHWIN'S RHAPSODY IN BLUE ON THE MOUTH ORGAN THEN FOLLOWS WITH THE WAY WE WERE ON A MINIATURE ONEINCHLONG HARMONICA HE WINDS UP BY TOOTING I DON'T KNOW WHY I LOVE YOU LIKE I DO ON HIS ONEOFAKIND SEQUINED MUSICAL GLOVES WHICH HAVE SEGMENTS OF A HARMONICA ATTACHED TO THE FINGERTIPS THESE ARE THE MUSICAL GLOVES THAT TOOK ME AROUND THE WORLD ON 58 CRUISES HE PROUDLY INFORMS THE GROUP LATER SITTING IN THE LIVING ROOM OF HIS SMALL APARTMENT IN NORTH HOLLYWOOD MR GRAYSON CONFIDES HIS DREAM THAT SOMEDAY HE AND HIS GLOVES WILL WIND UP IN COMMERCIALS MAYBE KENTUCKY FRIED CHICKEN FINGER LICKIN' GOOD HE SAYS BLOWING ON HIS FINGERTIPS I KNOW I'M NOT A HEADLINER BUT I DO KNOW I CAN ENTERTAIN THE COMEDY CLUB GOT ITS START IN 1950 AS A PLACE WHERE COMICS AND OTHER ENTERTAINERS COULD SCHMOOZE SHOW OFF AND FIND WORK STARS AFFILIATED WITH THE CLUB INCLUDED SUCH BIG NAMES AS JIMMY DURANTE JACKIE GLEASON AND SAMMY DAVIS JR MAE WEST BEQUEATHED PART OF HER FORTUNE TO THE 125MEMBER MEN'S COMEDY CLUB WHEN SHE DIED IN 1980 BUT SHE LEFT THE LADIES' AUXILIARY OUT OF HER WILL YOU DON'T THINK MAE WEST WOULD LEAVE ANY MONEY TO OTHER WOMEN DO YOU ASKS MRS WESTMORE IN RECENT YEARS AS THE OLD STARS HAVE DIED OUT THE COMEDY CLUB HAS LOST SOME OF ITS LUSTER IT'S DIFFICULT ATTRACTING NEW MEMBERS SAYS JIMMY BAYS THE CLUB'S HEADLINER OR PRESIDENT YET THE MEMBERS' AGES ARE AN ASSET THEY HAVE SUCH EXTENSIVE REPERTOIRES TO MINE FOR THE MONTHLY SHOWS I PLAYED VAUDEVILLE IN '27 '28 AND '29 PHIL REGAN THE 87YEAROLD SINGING COP TELLS THE AUDIENCE OF NEARLY 200 SENIOR CITIZENS WHO STOP MUNCHING THEIR CHEESEFLAVORED POPCORN TO HUM ALONG AS HE LAUNCHES INTO WHEN IRISH EYES ARE SMILING THOSE WERE THE DAYS WEREN'T THEY HE SAYS THE LIGHTS DIM AND A FILM PROJECTOR SPITS OUT A GRAINY BLACKANDWHITE CLIP OF AL JOLSON AND A LITTLE GIRL SINGING IN THE 1936 FILM THE SINGING KID THEN THE SCREEN LIFTS AND SYBIL JASON WHO PLAYED THAT GIRL SINGS THE SAME SONG WITH A FEW ALTERED LYRICS THOUGH THAT WAS MANY YEARS AGO WE ARE PLEASED TO KNOW WE HAVE NOT FORGOTTEN AND IT DOES US GOOD IF PERCHANCE SOMEONE HAS FORGOTTEN MISS JASON HER HUSBAND HAS AT THE READY A NEWSPAPER CLIPPING AND A PUBLICITY PHOTO FROM HER 1939 FILM THE LITTLE PRINCESS SOME OF THE ACTS ARE A BIT RUSTY THERE'S JACK SPOONS A FORMER ZIEGFELD FOLLIES PERFORMER DRESSED AS A HOBO AND BANGING OUT A RENDITION OF SHE'LL BE COMIN' ROUND THE MOUNTAIN ON A WASHBOARD RICHARD HAPPY HALL A ROUNDFACED REDHEAD TAP DANCES IN ROLLER SKATES MR BAYS IN CHECKERED BLAZER AND OPENCOLLARED PINK SHIRT CROONS THE LOUNGE STANDARD AFTER THE LOVIN' THEN WINDS UP WITH PARTNER LARA CARLYLE AS AMERICA'S SINGING SWEETHEARTS IN A DUET OF THE THEME SONG FROM EXODUS AS COMIC RANDY HAUCK QUIPS LATER THIS IS THE SENIOR CITIZENS' VERSION OF THE GONG SHOW' FOR MR BAYS THOUGH IT'S SERIOUS BUSINESS THEY'RE ALL PROFESSIONALS NOT AMATEURS PERHAPS AS A REFLEX FROM YEARS SPENT LOOKING FOR JOBS CLUB MEMBERS INTRODUCE THEMSELVES WITH THEIR CREDITS I WAS RUDY VALLEE'S PIANIST I WAS JIMMY DURANTE'S PIANIST I WAS PINKY LEE'S PIANIST IS THAT ENOUGH FOR YOU SAYS AL DECRESCENT A WHITEHAIRED MUSTACHIOED MAN WHO DOES PIANO ACCOMPANIMENT AT THE SHOWS ACROSS THE ROOM A 91YEAROLD WOMAN IN A GOLD LAME CAPE WITH A DIAMOND TIARA IN HER RAVEN HAIR INTRODUCES HERSELF AS MADAME KATHRYN ETIENNE BALLERINA AND SISTERINLAW OF CYD CHARISSE MITZI GAYNOR STUDIED WITH ME FOR EIGHT YEARS I TOOK HER TO WARNER BROS MME ETIENNE SAYS UNLIKE MOST ENTERTAINERS COMEDY CLUB MEMBERS FLAUNT THEIR AGES I'LL BE 86 ON JAN 6 SAYS RUTH K DARLING THE ONLY CHARTER MEMBER STILL ACTIVE IN THE 60WOMAN LADIES' COMEDY CLUB MR DECRESCENT THE PIANIST LIKES TO TELL EVERYONE I'M 102 THOUGH THAT IS A BIT OF AN EXAGGERATION GERIATRIC JOKES PEPPER THE ROUTINES AFTER 40 YEARS IT'S NICE TO BE STANDING UP ON STAGE WITH YOU MICHAEL O'SULLIVAN LONG SAYS TO SIDEKICK VI LAWSON AFTER ALL THESE YEARS IT'S NICE TO BE STANDING UP SHE PARRIES MEMBERS WHO MISS THE SHOWS ARE TREATED TO A LIVELY SUMMARY OF EVENTS IN THE CLUB'S MONTHLY NEWSLETTER ONE RECENT BLURB TELLS OF 77YEAROLD CONTORTIONIST HAPPI TOWN WHO TO THE TUNE OF YOUNGER THAN SPRINGTIME' PROCEEDED TO ROLL HERSELF INTO A PRETZEL THEN CROSSED BOTH FEET BEHIND HER NECK ANOTHER COLUMN IN THE NEWSLETTER CHICKEN SOUP GROUP ADVISES OF CLUB MEMBERS WHO HAVE FALLEN ILL AND THERE ARE SHOW BIZSTYLE OBITUARIES FOR MEMBERS LIKE EDDIE RIO OF THE RIO BROTHERS SINGING ACT EDDIE TOOK HIS LAST APPLAUSE AT THE OLD NORTH CHURCH IN THE HOLLYWOOD HILLS PERFORMERS GET 20 GASOLINE STIPENDS BUT FOR MOST THE CHANCE TO PERFORM AGAIN IS PAYMENT ENOUGH CAMARADERIE IS WHAT DRAWS THESE SENIOR CITIZENS OUT OF THEIR APARTMENTS ONCE A MONTH TO THIS FADED CORNER OF HOLLYWOOD MR BAYS SAYS FOR SOME IT IS ONE OF THEIR FEW OUTINGS AT A RECENT MEETING OF THE WOMEN'S CLUB VICE PRESIDENT DOROTHY PALERMO CLAD IN A COLORFUL MUUMUU SWEARS IN A NEW MEMBER BY PLEDGING HER TO ATTEND ALL THE CLUB ACTIVITIES SHE PAUSES FOR EFFECT THAT I CAN 9311090154 931109 ENTERPRISE SELLERS FIND THAT IT PAYS TO STICK AROUND AFTER A DEAL BUYERS OF BUSINESSES REWARD FORMER OWNERS WHO HELP REDUCE THE RISKS BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL SELLING OUT DOESN'T MEAN SAYING GOODBYE TO FETCH TOP DOLLAR FOR THEIR BUSINESSES MORE ENTREPRENEURS NOW FIND THEY MUST STICK AROUND AND KEEP WORKING AFTER THE SALE IN AUGUST 50YEAROLD CHARLES WILLIAMS SOLD RH WOOD CO A SMALL WALNUT CREEK CALIF FIRM THAT SUPPLIES AUTO SUPPLIES TO BODY SHOPS HE SAYS HE GOT 20 MORE MONEY THAN EXPECTED BY AGREEING TO WORK FOR THE NEW OWNERS FOR FOUR YEARS AS AN ADDED INCENTIVE BUYERS THREW IN A BONUS PACKAGE THAT COULD INCREASE HIS ANNUAL BASE PAY BY AS MUCH AS 50 IN THE FIRST YEAR AND 25 ANNUALLY THEREAFTER MR WILLIAMS SAYS THE PURCHASER THOMPSON LACQUER CO IN LOS ANGELES HAS ACQUIRED MORE THAN A DOZEN SMALL BODYSHOP SUPPLIERS UNDER SIMILAR TERMS SINCE 1989 REPORTS MORTIMER KLINE III ITS PRESIDENT PERSUADING THE FORMER OWNER TO REMAIN AFTER A SALE REDUCES THE RISKS INVOLVED IN AN ACQUISITION MR KLINE SAYS AND AS LACQUER'S RISKS LESSEN HE ADDS IT'S WILLING TO PAY MORE NOWADAYS THE ONLY WAY THE OWNERS ARE GOING TO GET A PREMIUM FOR THEIR COMPANIES IS TO HANG IN THERE FOR A WHILE AND MAKE SURE EVERYTHING GOES WELL MR KLINE SAYS BUT THE TREND WHICH REFLECTS NEW CONSERVATISM AMONG BUYERS OF SMALL BUSINESSES HOLDS BOTH REWARDS AND RISKS FOR BUSINESS OWNERS ALTHOUGH DEMAND FOR SMALLER COMPANIES IS STRENGTHENING PURCHASERS AND THEIR BANKS ARE MORE CAUTIOUS THAN DURING THE HEADY MERGERSANDACQUISITIONS MARKET OF THE LATE 1980S ACQUISITION EXPERTS SAY TO OBTAIN ADEQUATE BANK FINANCING BUYERS NOW MUST PUT UP TWO TO FOUR TIMES AS MUCH OF THEIR OWN MONEY AS THEY DID FIVE YEARS AGO SURVEYS SHOW THAT'S ESPECIALLY TRUE IF MUCH OF WHAT THEY PURCHASE IS GOODWILL INTANGIBLE ASSETS SUCH AS AN OWNER'S RELATIONSHIPS WITH CUSTOMERS THE UNWILLINGNESS OR INABILITY OF MANY BUYERS TO COME UP WITH ALL THE EXTRA CASH IS FORCING MORE SELLERS TO STICK AROUND FOR YEARS AFTER A SALE SO THEY CAN ULTIMATELY RECEIVE A HIGHER PRICE FOR THEIR COMPANIES OR SELL THEM AT ALL A RECENT SURVEY OF 53 SMALLER DEALS BY THE INSTITUTE OF MERGERS & ACQUISITIONS PROFESSIONALS FOUND THAT NEARLY THREEFOURTHS OF SELLERS STAYED ON AS CONSULTANTS THE FREQUENCY OF OWNER INVOLVEMENT AFTER A SALE HAS GROWN SIGNIFICANTLY IN THE PAST FIVE YEARS REPORTS NICHOLAS MERKEL A CLEVELAND INVESTMENT BANKER AND THE INSTITUTE'S PRESIDENT THE SELLER MAY NOT LIKE IT MR MERKEL SAYS BUT GENERALLY HE ADDS THERE'S SUCH A WIDE SPREAD BETWEEN WHAT THE BUYER WANTS AND THE SELLER IS WILLING TO PAY THAT IT'S THE ONLY WAY TO BRIDGE THE GAP TO SELL HIS COMPANY JACK TONKIN SAYS HE AGREED TO KEEP WORKING FOR TONKIN INC'S NEW MAJORITY OWNERS FOR AT LEAST SEVEN YEARS AFTER ITS 1992 SALE THE WOODINVILLE WASH COMPANY LICENSES TRADEMARKS OF ITS INDUSTRIAL CLIENTS TO DEVELOP PROMOTIONAL PRODUCTS FOR THEM HE SAYS HE WANTED TO SLOW DOWN AFTER WORKING 12 TO 14 HOURS A DAY AND SIX DAYS A WEEK SINCE HE STARTED THE COMPANY IN 1970 MR TONKIN INITIALLY HAD HOPED TO SELL THE BUSINESS AND RETIRE BUT AFTER LEARNING WHAT SUITORS WERE WILLING TO PAY UNDER SUCH CONDITIONS HE REALIZED THE IDEA WAS A PIPE DREAM INSTEAD MR TONKIN AGREED TO SELL A MAJORITY OF HIS BUSINESS FOR CASH AND NOTES TO A PRIVATE INVESTOR THE TERMS REPRESENT A WAY FOR ME TO STAY AT THE COMPANY AND CONTINUE SERVING CUSTOMERS WHILE GETTING SOME EQUITY OUT MR TONKIN EXPLAINS SOME BUYERS WON'T PURCHASE SMALLER COMPANIES ANY OTHER WAY THESE DAYS INVEST WEST CAPITAL CORP A UNIT OF INVEST WEST FINANCIAL CORP SANTA BARBARA CALIF BEGAN BUYING SMALL BUSINESSES IN 1991 MANY PROSPECTIVE SELLERS WANTED TO CASH OUT AND WALK THAT WAS UNACCEPTABLE TO US SAYS JAMES NELSON AN INVEST WEST PRINCIPAL WE WON'T BUY UNLESS THE OWNER HAS A SUBSTANTIAL STAKE IN THE COMPANY'S PERFORMANCE FOR AT LEAST TWO YEARS HE CONTINUES IN THESE SMALL COMPANIES OWNERS ARE SO CRUCIAL WHEN CHICAGO METALLICS CORP BOUGHT HSN STEEL INC A CHICAGO MAKER OF LAMINATED ARCHITECTURAL PRODUCTS LAST FEBRUARY IT INSISTED THAT FORMER OWNER HENRY NICHOL REMAIN FOR THREE YEARS MR NICHOL SAYS PART OF HIS PRICE WILL EQUAL A FIFTH OF HSN'S SALES AFTER LABOR AND MATERIALS COSTS DURING THAT PERIOD THEY WANTED TO INDUCE ME TO BUILD THE BUSINESS AS QUICKLY AS POSSIBLE MR NICHOL NOTES SUCH ARRANGEMENTS CLEARLY INCREASE SMALLBUSINESS OWNERS' CHANCES OF FETCHING HIGHER PRICES BUT THEY ALSO PRESENT ADDITIONAL RISKS SAYS JEFFREY MOORE PRESIDENT OF MATRIX CAPITAL MARKETS GROUP INC A RICHMOND VA INVESTMENT BANKING FIRM THAT SPECIALIZES IN SMALLER DEALS TO MINIMIZE THESE RISKS THE CONTINGENCY PORTION OF A PROPOSED DEAL SHOULD RARELY EQUAL MORE THAN 25 OF A TRANSACTION'S TOTAL PURCHASE PRICE HE SAYS OTHERWISE AN OWNER WILL FEEL AS IF HE HAS A SHOTGUN TO HIS HEAD HE ADDS IN ADDITION THE AGREEMENTS MEAN A SELLER'S ULTIMATE PAYOUT WILL DEPEND ON THE PERFORMANCE OF A COMPANY THAT HE OR SHE USUALLY NO LONGER CONTROLS THAT FORCES A SELLER TO SCRUTINIZE A BUYER'S FINANCIAL ABILITY AND MANAGEMENT SKILLS VERY CAREFULLY SUCH CONCERNS LED CLARK RAMBO TO TURN DOWN THE FIRST OFFER HE RECEIVED FOR HIS COMPANY ASAP GRAPHICS & COPY CENTERS INC WHICH OWNS A 13STATE DISTRIBUTOR OF BANANA BOAT SKINCARE PRODUCTS THE POTENTIAL BUYER OF MR RAMBO'S VIRGINIA BEACH VA CONCERN WANTED TO PAY A THIRD OF THE PURCHASE PRICE WITH A FIVEYEAR NOTE UNCOMFORTABLE WITH STRETCHING OUT PAYMENTS THAT LONG HE INSTEAD PICKED BUYERS WHO WOULD CASH HIM OUT AFTER A YEAR LAST MARCH HE SOLD THE COMPANY TO A GROUP CONTROLLED BY THOMAS H LEE CO A BOSTON INVESTMENT FIRM TO BRIDGE THE GAP BETWEEN WHAT HE WANTED AND WHAT HIS SUITORS WERE WILLING TO PAY MR RAMBO SAYS HE AGREED TO REMAIN AS A CONSULTANT FOR A YEAR MOREOVER A PORTION OF THE DEAL'S FINAL PURCHASE PRICE IS EQUAL TO A SHARE OF THE COMPANY'S SALES GROWTH OVER THAT PERIOD THOUGH THE AMOUNT IS CAPPED I STILL COME INTO THE OFFICE EVERY DAY HE SAYS IF I LAID BACK I RISK LEAVING A SUBSTANTIAL BONUS ON THE TABLE 9311090153 931109 QVC IS NEAR AGREEMENT WITH BELLSOUTH ON 15 BILLION IN PARAMOUNT BID FUNDS BY LAURA LANDRO AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL QVC NETWORK INC IS CLOSE TO AN AGREEMENT ON A 15 BILLION INVESTMENT FROM BELLSOUTH CORP THAT COULD MAKE THE REGIONAL TELEPHONE GIANT ONE OF THE LARGEST AND MOST INFLUENTIAL INVESTORS IN QVC'S HOSTILE BID FOR PARAMOUNT COMMUNICATIONS INC BUT THE TWO SIDES STILL MUST HASH OUT DETAILS OF A DEAL THAT WOULD ARM QVC WITH CASH TO RAISE ITS 97 BILLION BID IN RESPONSE TO A SWEETENED 102 BILLION OFFER BY VIACOM INC FOR PARAMOUNT ACCORDING TO PEOPLE CLOSE TO THE SITUATION THOUGH THERE WERE CONFLICTING ACCOUNTS YESTERDAY ABOUT WHETHER THE TWO SIDES HAD RESOLVED THE QUESTION OF HOW MUCH CONTROL BELLSOUTH WOULD EXERCISE PEOPLE CLOSE TO QVC SAID THAT IT WAS NO LONGER A MAJOR IMPEDIMENT ONE PERSON SAID QVC IS WILLING TO OFFER REASONABLE REPRESENTATION TO BELLSOUTH COMMENSURATE WITH ITS INVESTMENT OF 15 BILLION INCLUDING ONE OR MORE SEATS ON QVC'S BOARD THE SCRAMBLE TO COMPLETE AN AGREEMENT WITH BELLSOUTH CAME AFTER VIACOM IN A MOVE THAT GIVES IT A DISTINCT TIMING ADVANTAGE ON SATURDAY RAISED ITS BID FOR THE SECOND TIME VIACOM'S LATEST OFFER WAS VALUED AT AN AVERAGE OF 8199 A SHARE IN STOCK AND CASH OR 102 BILLION AS OF YESTERDAY ANALYSTS AND WALL STREET TRADERS ARE ANTICIPATING ANOTHER ROUND OF BIDDING IN THE HEADY CONTEST FOR ENTERTAINMENT AND PUBLISHING GIANT PARAMOUNT QVC'S BID IS CURRENTLY VALUED AT 97 BILLION OR 7770 A SHARE IN STOCK AND CASH VIACOM MADE A BOLD AND DECISIVE STEP TO OUTMANEUVER QVC SAID MARIO GABELLI A LARGE PARAMOUNT SHAREHOLDER TO PREVAIL MR GABELLI SAID QVC MUST EITHER MAKE AN ALLCASH BID IN THE 88ASHARE RANGE OR OFFER A COMBINATION OF STOCK AND CASH CLOSER TO 90 A SHARE QVC'S NEGOTIATIONS WITH BELLSOUTH HAVE BEEN GRUELING FOR QVC CHAIRMAN BARRY DILLER WHO IS STRUGGLING TO STAY IN THE CONTEST FOR PARAMOUNT WHILE KEEPING CONTROL OF THE FUTURE OF HIS COMPANY QVC ALREADY HAS FOUR POWERFUL INVESTORS IN ITS BID FOR PARAMOUNT LIBERTY MEDIA CORP COMCAST CORP COX ENTERPRISES INC AND ADVANCE PUBLICATIONS INC AND BELLSOUTH HAS BEEN DEMANDING MORE CONTROL THAN QVC HAS BEEN WILLING TO CEDE ALSO COMPLICATING THE NEGOTIATIONS IS THE FUTURE ROLE OF THE CURRENT LARGEST INVESTOR IN QVC LIBERTY MEDIA LIBERTY OWNS A 22 STAKE IN QVC AND HAS AGREED TO INVEST 500 MILLION IN THE PARAMOUNT BID BUT LIBERTY'S INVOLVEMENT IN THE QVC BID COULD BE A MAJOR ANTITRUST IMPEDIMENT LIBERTY IS DUE TO BE ACQUIRED BY CABLE GIANT TELECOMMUNICATIONS INC WHICH IS IN TURN TO BE ACQUIRED BY BELL ATLANTIC CORP ANOTHER REGIONAL TELEPHONE GIANT THE FEDERAL TRADE COMMISSION MAY RULE AS EARLY AS TODAY ON HOW FAR LIBERTY MUST DISTANCE ITSELF FROM QVC TO PERMIT THE HOMESHOPPING COMPANY TO BUY PARAMOUNT WITHOUT VIOLATING ANTITRUST LAWS ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION THE FTC YESTERDAY WAS LEANING TOWARD ALLOWING LIBERTY TO RETAIN SOME OWNERSHIP STAKE IN QVC BUT IS INSISTING THAT LIBERTY HAVE NO VOICE IN GOVERNING THE COMPANY IF QVC LOSES THE BATTLE FOR PARAMOUNT HOWEVER LIBERTY COULD KEEP ITS CURRENT STAKE THAT POSITION IF CORRECT WOULD REPRESENT A SUBSTANTIAL SOFTENING OF THE AGENCY'S EARLY STANCE ON LIBERTY ACCORDING TO THESE PEOPLE THE FTC INITIALLY INDICATED THAT QVC COULDN'T EVEN CONTINUE AS A BIDDER WITHOUT LIBERTY FIRST SHEDDING ITS QVC STAKE BELLSOUTH IS SAID TO BE PREPARED TO BUY OUT LIBERTY'S ENTIRE QVC STAKE IF NECESSARY OR BUY PART OF IT INCLUDING REPLACING THE 500 MILLION LIBERTY HAD PLEDGED TO INVEST IN THE QVC BID FOR PARAMOUNT BELLSOUTH HAS LONG BEEN INTERESTED IN JOINING IN A PARAMOUNT BID AND INITIALLY DISCUSSED INVESTING IN VIACOM'S OFFER BUT VIACOM OFFICIALS SAY BELLSOUTH WANTED TO BE AN EQUAL FINANCIAL PARTNER WITH EQUAL VOTING CONTROL AND EVEN INDICATED IT MIGHT MAKE ITS OWN BID IF VIACOM DIDN'T AGREE VIACOM REJECTED THE BELLSOUTH PROPOSAL AND MADE A DEAL WITH ANOTHER REGIONAL PHONE COMPANY NYNEX CORP FOR A 12 BILLION INVESTMENT THAT DOESN'T INCLUDE ANY VOTING RIGHTS BELLSOUTH IS ALSO TAKING A TOUGH LINE WITH QVC PEOPLE FAMILIAR WITH THE COMPANY SAID ASKING FOR PARTICIPATION IN ANY NEGOTIATIONS WITH PARAMOUNT AS WELL AS A SIGNIFICANT VOICE IN THE COMBINED COMPANIES IF THE BID SUCCEEDS THOUGH THERE WERE CONFLICTING ACCOUNTS YESTERDAY ABOUT WHETHER THE CONTROL ISSUE HAD BEEN FULLY RESOLVED PEOPLE CLOSE TO QVC SAID IT WAS NO LONGER A MAJOR IMPEDIPERSON SAID QVC IS WILLING TO OFFER REASONABLE REPRESENTATION TO BELLSOUTH COMMENSURATE WITH ITS INVESTMENT OF 15 BILLION THE MAIN STUMBLING BLOCK NOW ANOTHER PERSON IN THE QVC CAMP SAID IS HIGHLY TECHNICAL ISSUES RELATED TO THE FEDERAL COURT DECREE THAT BROKE UP THE BELL TELEPHONE MONOPOLY IN THE EARLY 1980S THAT DECREE BARRED THE REGIONAL PHONE COMPANIES FROM CERTAIN BUSINESSES INCLUDING LONG DISTANCE TELEPHONE SERVICE THOUGH THE PHONE COMPANIES ARE MOUNTING A LEGAL CHALLENGE TO THE BAN PEOPLE IN THE QVC CAMP SAID THE COMPANY IS UNDER NO IMMEDIATE TIME PRESSURE TO RAISE ITS BID IN THE NEXT FEW DAYS BUT ANALYSTS SAY THE CLOCK IS TICKING IN VIACOM'S FAVOR AT PRESENT SINCE VIACOM COULD IN THEORY COMPLETE ITS OFFER FOR PARAMOUNT BEFORE QVC SORTS OUT ITS INVESTORS AND WINS ALL THE NECESSARY LEGAL APPROVALS QVC MUST ALSO WEIGH WHETHER IT CAN MAKE AN ADEQUATE RETURN ON ITS INVESTMENT IF IT INCREASES ITS BID FOR PARAMOUNT ABOVE CURRENT LEVELS THE VIACOM BID INCREASE COULD RAISE QUESTIONS IN THE MINDS OF QVC'S PARTNERS AND BANKERS ABOUT THE ECONOMIC VIABILITY OF MAKING A BID FOR 88 OR MORE SAID ED HATCH AN ANALYST AT UBS SECURITIES MR HATCH SAID QVC HAS A RELATIVELY SHORT WINDOW AND SHOULD HAVE A HIGHER OFFER ON THE TABLE BEFORE NOV 16 WHEN A DELAWARE COURT IS SET TO RULE ON QVC'S CHALLENGE TO PARAMOUNT'S AGREEMENT WITH VIACOM QVC IS TRYING TO GET THE COURT TO THROW OUT A LOCKUP PROVISION REQUIRING PARAMOUNT TO PAY VIACOM 100 MILLION IF ANOTHER BIDDER PREVAILS MR HATCH SAID VIACOM COULD OTHERWISE CLOSE ITS BID BY NOV 22 THE DAY ITS TENDER OFFER FOR PARAMOUNT IS DUE TO EXPIRE BECAUSE INVESTORS MAY CHOOSE TO GO WITH THE SWEETENED VIACOM BID 9311090152 931109 HOW WHITMAN DID IT BY MATTHEW REES THE VICTORY LAST WEEK OF CHRISTINE TODD WHITMAN IN THE NEW JERSEY GOVERNOR'S RACE MADE A MOCKERY OF MANY PEOPLE REPUBLICAN NAYSAYERS LIKE KEVIN PHILLIPS BIG GOVERNMENT DEMOCRATS AND GOV JAMES FLORIO'S CAMPAIGN STRATEGIST JAMES CARVILLE WHO WAS HEARD CARPING LAST WEEK THAT WE COULD HAVE WON ON THE TAXES IF WE'D HAD A COUPLE OF MONTHS OF ECONOMIC GROWTH BUT REPUBLICANS SHOULD RESIST THE TEMPTATION TO GLOAT AND INSTEAD MASTER THE LESSONS OF THE WHITMAN VICTORY THE MOST IMPORTANT OF WHICH IS THAT THE ISSUE OF GROWTH AND TAX CUTS MAY SOON RETURN TO CENTER STAGE IN AMERICAN POLITICS INDEED THE QUESTION TO ANSWER NOW IS HOW A CANDIDATE LIKE MRS WHITMAN WHO HAS NO RECOGNIZABLE ECONOMIC CREDENTIALS COULD PUT FORWARD A PROGRESSIVE SUPPLYSIDE ECONOMIC PLAN THAT DESPITE A HOSTILE PRESS CORPS AND A TIMID COLLECTION OF REPUBLICANS IN THE STATE LEGISLATURE COULD BECOME THE SINGLE MOST IMPORTANT ISSUE IN THE GUBERNATORIAL CAMPAIGN AND CATAPULT HER TO VICTORY MRS WHITMAN BY NO MEANS RAN A MODEL CAMPAIGN SHE LET MR FLORIO GET TO HER RIGHT ON CRIME AND WELFARE AND UNTIL HER ECONOMIC PLAN WAS ANNOUNCED SEEMED CONTENT TO CAMPAIGN AS SOMEONE WHO WAS NOT JIM FLORIO WHEN IT BECAME CLEAR THAT THAT ALONE WASN'T GOING TO WIN THE ELECTION IT WAS EASY TO THINK IT MIGHT SHE ADOPTED THE ONLY MEASURE THAT COULD POSSIBLY RESUSCITATE HER LIFELESS CAMPAIGN AN ECONOMIC PROGRAM PROMISING A MASSIVE REDUCTION IN THE SIZE AND SCOPE OF GOVERNMENT THROUGH 12 BILLION IN SPENDING CUTS AND A 30 CUT IN INCOME TAX RATES OVER THREE YEARS NOT SURPRISINGLY THIS BOLD MOVE WASN'T ENTIRELY POPULAR WITH NEW JERSEY'S POLITICAL CLASS BUT THE ONLY PEOPLE WHO REALLY MATTERED WERE THE VOTERS STUNG BY MR FLORIO'S STATEMENT IN THE 1989 RACE THAT HE SAW NO NEED TO RAISE TAXES AS GOVERNOR THEY THREW A COLLECTIVE TANTRUM THE NEXT YEAR WHEN TAXES WERE UPPED BY A WHOPPING 28 BILLION STATE SPENDING ALSO INCREASED IN SUCCEEDING YEARS BY AS MUCH AS 26 MRS WHITMAN HAD THE BENEFIT OF HER EXPERIENCE IN 1990 WHEN SHE RAN AN AGGRESSIVE CAMPAIGN FOR THE US SENATE AGAINST BILL BRADLEY ON THE ISSUE OF THE FLORIO TAX HIKES HER TRAVELS AROUND THE STATE OVER THE PAST THREE YEARS GRANTED HER UNRESTRICTED ACCESS TO VOTERS AND HELPED HER UNDERSTAND THEY WERE STILL ANGRY THIS ULTIMATELY LED HER TO CALL ON LAWRENCE KUDLOW A SUPPLYSIDER WHO WAS AN ASSOCIATE DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET IN THE REAGAN ADMINISTRATION TO DISCUSS AN ECONOMIC RECOVERY PLAN FOR THE STATE MEETING OVER DINNER AT THE UNION LEAGUE CLUB IN MANHATTAN ON APRIL 15 MR KUDLOW MADE THE CASE THAT NEW JERSEY WAS SCARING AWAY BUSINESSES AND CAPITAL AND THAT THE CENTERPIECE OF THE GUBERNATORIAL CAMPAIGN SHOULD BE REPEAL OF THE FLORIO TAXES THE APRIL MEETING FOLLOWED BY MORE MEETINGS CULMINATED IN THE ANNOUNCEMENT ON JULY 14 OF THE COUNCIL FOR ECONOMIC RECOVERY THIS COUNCIL WHOSE PRIMARY MEMBERS WERE MR KUDLOW NOW CHIEF ECONOMIST AT BEAR STEARNS IN NEW YORK AND MALCOLM S FORBES JR EDITORINCHIEF OF FORBES MAGAZINE SPENT THE BETTER PART OF THE NEXT TWO MONTHS HUDDLED TOGETHER PLANNING NEW JERSEY'S RECOVERY MESSRS KUDLOW AND FORBES PRESENTED THEIR PLANS TO MRS WHITMAN AT A SERIES OF MEETINGS HELD AT HER FARM IN FAR HILLS BUT ACCORDING TO ADVISERS IT WAS ULTIMATELY THE DISCUSSIONS WITH BOAT BUILDERS THAT CONVINCED THE CANDIDATE OF THE IMPORTANCE OF TAXES HEARING THEM DESCRIBE HOW THEIR INDUSTRY HAD WITH THE AUGUST REPEAL OF THE FEDERAL LUXURY TAX STARTED TO RECOVER FROM THE DECIMATION ITS 1990 PASSAGE HAD CAUSED HELPED CONVINCE MRS WHITMAN THAT IF LOWER TAXES COULD HELP THE BOAT INDUSTRY RECOVER THEY COULD DO THE SAME FOR NEW JERSEY WITH THE HELP OF THE SPEAKER OF THE ASSEMBLY CHUCK HATAYIAN WHOSE STAFF PROVIDED MOUNDS OF STATISTICAL DATA MRS WHITMAN ANNOUNCED THE ECONOMIC RECOVERY PLAN ON SEPT 21 WITH THE ENDORSEMENT OF FORMER REPUBLICAN GOV TOM KEAN THE ALMOST KNEEJERK REACTION WAS TO DISMISS THE PLAN WHICH PLEDGED TO CREATE 450000 NEW JOBS AS NOTHING MORE THAN ELECTIONYEAR POLITICKING AN UNDERSTANDABLE SENTIMENT BASED ON BROKEN TAX PROMISES BY MR FLORIO AND GEORGE BUSH TYPICAL WAS A SEPT 24 EDITORIAL IN THE PHILADELPHIA INQUIRER A PAPER WITH A LARGE NEW JERSEY READERSHIP WHAT WE HAVE HERE IS A POLITICALLY EXPEDIENT PROPOSAL THAT PASSES INTO THE REALM OF THE RIDICULOUS WE DO NOT BELIEVE MRS WHITMAN HERSELF BELIEVES IN THIS PLAN IN SHORT WE THINK IT'S AN INTENTIONAL FRAUD PERPETRATED BY A DESPERATE CANDIDATE SIMILARLY AT A SEPT 13 MEETING WITH MR KUDLOW REPUBLICAN STATE LEGISLATORS REPORTEDLY WENT BALLISTIC OVER THE PROPOSED TAX CUTS CALLING THEM TOO MUCH TOO FAST REPUBLICANS HAVE MAJORITIES IN BOTH HOUSES OF THE LEGISLATURE DODGING THE BULLET SHOT BY THE LEGISLATURE WAS MUCH EASIER HOWEVER THAN ESCAPING THE RAPID FIRE THE CAMPAIGN WAS RECEIVING FROM THE STATE'S MEDIA AND POLITICAL CLASS A CAMPAIGN RESHUFFLE ALLOWED ED ROLLINS JACK KEMP'S 1988 CAMPAIGN DIRECTOR TO FOCUS THE RACE ON TAXES AND THE FLORIO RECORD CALLED IN TO COORDINATE SUPPORT FOR THE WHITMAN PLAN WAS GROVER NORQUIST PRESIDENT OF AMERICANS FOR TAX REFORM IN WASHINGTON MR NORQUIST UNDERSTOOD THAT THE BIGGEST HURDLE TO OVERCOME WAS BUILDING CREDIBILITY FOR THE ECONOMIC PLAN AND CONVINCING PEOPLE IT WAS ACHIEVABLE HIS FIRST STEP WAS TO ROUND UP SUPPORTIVE STATEMENTS FROM REPUBLICAN GOVERNORS TOMMY THOMPSON OF WISCONSIN WILLIAM WELD OF MASSACHUSETTS JOHN ENGLER OF MICHIGAN FIFE SYMINGTON OF ARIZONA AND STEVE MERRILL OF NEW HAMPSHIRE ALL SENT TESTIMONIALS EXPLAINING HOW THEY HAD CUT TAXES SLASHED SPENDING AND SPURRED ECONOMIC GROWTH BRET SCHUNDLER THE POPULAR GOP MAYOR OF JERSEY CITY SENT ONE IN AS WELL THE STATEMENTS WERE MAILED TO NEWS ORGANIZATIONS AND WERE FREQUENTLY REFERRED TO IN CAMPAIGN SPEECHES THEY ALSO PREVENTED MR FLORIO FROM SAYING NO ONE BELIEVES THIS WHICH HAD BEEN HIS INITIAL RESPONSE THESE MOVES ULTIMATELY PROVED USEFUL IN CONVINCING VOTERS AND THE MEDIA THAT THE ECONOMIC PLAN WAS A SERIOUS EFFORT TO REBUILD NEW JERSEY'S ECONOMY AN OCT 7 ARTICLE IN THE NEW YORK TIMES BY ECONOMICS REPORTER SYLVIA NASAR HEADLINED WHITMAN PLAN TO CUT TAXES EXPERTS TAKING IT SERIOUSLY WAS INTERPRETED BY CAMPAIGN AIDES AS AN INDICATOR THAT THEIR EFFORTS WERE PAYING OFF THE GOVERNORS' STATEMENTS WERE COMPLEMENTED BY A JACK KEMP OPED IN THE BERGEN RECORD ON OCT 29 SUPPORTING THE TAX CUTS AS WELL AS BY PAPERS DONE BY FREEMARKET GROUPS LIKE THE HERITAGE FOUNDATION AND CITIZENS FOR A SOUND ECONOMY THESE PAPERS DETAILED THE SUCCESS OF TAX CUTS IN THE 1980S AND COMPARED THEM WITH THE ECONOMIC RECORD IN NEW JERSEY SINCE MR FLORIO HAD RAISED TAXES FROM THE PERSPECTIVE OF THE WHITMAN CAMPAIGN IT WAS AN EASY STORY TO TELL NEW JERSEY HAS LOST 277000 JOBS SINCE MR FLORIO TOOK OFFICE IT HAS GONE FROM BEING ONE OF THE NATION'S MOST VIBRANT ECONOMIES IN THE 1980S TO THE POINT WHERE IN PER CAPITA TERMS THE STATE LOST MORE JOBS IN 1992 THAN ANY OTHER SAVE WOEFUL WEST VIRGINIA IN THE MIDST OF THE PR BLITZ WITH JAMES CARVILLE CONTINUING TO CACKLE TO THE PRESS ABOUT THE DEATH OF SUPPLYSIDE ECONOMICS THE WHITMAN CAMPAIGN'S POLLSTER ED GOEAS OF THE TARRANCE GROUP WAS UNCOVERING THE DATA THAT WOULD EXPLAIN WHY VOTERS WERE RECEPTIVE TO MRS WHITMAN'S ECONOMIC PLAN WHEN ASKED WHETHER THEY BELIEVED INCOME TAXES COULD BE CUT BY 30 OVER THREE YEARS RESPONDENTS SAID YES BY A HEFTY 5436 MARGIN ANOTHER POLL FOUND THAT 60 OF THOSE SURVEYED DID NOT BELIEVE THAT GOVERNMENT WOULD SPEND INCREASED TAX REVENUES EFFICIENTLY THE ONLY CHALLENGE THAT REMAINED WAS GOING OVER THE HEADS OF A PRESS CORPS THAT CONTINUED TO CAST ASPERSIONS ON MRS WHITMAN ONLY THREE OF THE STATE'S DAILY PAPERS ENDORSED HER IT WAS DECIDED SHE MUST STATE THE CASE FOR TAX CUTS WITH NO SIGN OF HESITATION THIS SHE DID IN THE DEBATES YOU LOOK AT THE ECONOMIC HISTORY OF THE STATE OF NEW JERSEY AND YOU LOOK AT THE TREND LINE WHEN YOU CUT TAXES YOU SEE JOBS CREATED SAID MRS WHITMAN RESPONDING TO BARBS FROM MR FLORIO IN THE FIRST DEBATE LATER SHE PROMISED NOT TO RUN FOR REELECTION IF SHE DID NOT IMPLEMENT THE 30 CUT OVER THREE YEARS THE MOST IMPORTANT REASON THE WHITMAN CAMPAIGN WAS SUCCESSFUL ACCORDING TO MANY AIDES WAS THAT THE CANDIDATE NEVER WAVERED IN HER SUPPORT FOR THE TAXCUTTING ECONOMIC PLAN FROM NUMEROUS INTERVIEWS CONDUCTED IN THE PAST WEEK A PORTRAIT EMERGES OF A CANDIDATE WITH STEELY RESOLVE AT ONE POINT SHE DECLARED THAT SHE WOULD CAMPAIGN FOR THE ECONOMIC PLAN ALONE EVEN IF HER ADVISERS OR THE REPUBLICANS IN TRENTON WOULDN'T GET ON BOARD MR KUDLOW NOW REFERS TO MRS WHITMAN AS HIS SUPPLYSIDE MOLE BECAUSE SHE UNDERMINED THE EFFORTS OF OTHERS ON THE CAMPAIGN WHO NEVER FULLY EMBRACED THE TAX CUTS INDEED CONTRARY TO POPULAR OPINION MRS WHITMAN DID NOT AT ANY POINT RUN AWAY FROM HER ECONOMIC PLAN OUR STRATEGY WAS REAL SIMPLE SAID MIKE MURPHY THE CAMPAIGN'S ADMAN IN A POSTELECTION INTERVIEW WITH THE HOTLINE FRAME THE DEBATE ON TAXES AND FLORIO'S RECORD ON THE ECONOMY IN 36 OF THE 42 DAYS FROM THE TIME OF THE SEPT 21 ANNOUNCEMENT UNTIL ELECTION DAY ON NOV 2 THE CAMPAIGN RAN PROTAX CUT ADS THERE IS AN IMPORTANT LESSON TO BE LEARNED FROM THE WHITMAN CAMPAIGN FOR OTHER POLITICAL CANDIDATES WE FOUGHT THE '80S DEBATE ALL OVER AGAIN IN NEW JERSEY SAID MR NORQUIST WE WORKED FROM THE ASSUMPTION THAT OUR ECONOMIC POLICIES WORKED AND THEIRS DIDN'T WE REMINDED PEOPLE THAT WHEN YOU RAISE TAXES YOU NOT ONLY HURT THE ECONOMY BUT YOU ALSO ELIMINATE JOBS WE RAN ON THIS MESSAGE GOING HEADTOHEAD WITH THE POLITICS OF ENVY AND WE WON AGAINST THE BEST THEY HAD NONE OTHER THAN MR FLORIO IN A POSTELECTION PRESS CONFERENCE ACKNOWLEDGED THE SALIENCY OF THE TAX ISSUE IT IS FAIRLY CLEAR PEOPLE STARTED LOOKING AT THE TAX CUT EVEN PEOPLE WHO SAID IT WAS NOT CREDIBLE OR SENSIBLE SAID AT LEAST SHE IS SUGGESTING SHE WANTS TO CUT TAXES BY 30 AND MAYBE SHE KNOWS SOMETHING I DON'T KNOW THE UNDECIDED GRAVITATED ON THAT I DON'T REALLY THINK THAT IS BEYOND DISPUTE MR REES IS A JOURNAL EDITORIAL PAGE WRITER A RELATED EDITORIAL APPEARS NEARBY SEE RELATED ARTICLE REVIEW & OUTLOOK EDITORIAL MRS WHITMAN'S AGENDA WSJ NOV 9 1993 9311090151 931109 INTERNATIONAL FRENCH GERMAN PHONE FIRMS SEEK TO INCREASE TIES BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON FRANCE TELECOM AND DEUTSCHE BUNDESPOST TELEKOM ARE SEEKING CLEARANCE FROM REGULATORS TO EXPAND THEIR COLLABORATION IN CORPORATE TELECOMMUNICATIONS SERVICES AROUND EUROPE THE COMPANIES WHICH ALREADY HAVE A JOINT VENTURE TO PROVIDE INTERNATIONAL SERVICES TO BIG MULTINATIONAL COMPANIES WANT TO COLLABORATE IN PROVIDING LEASED LINES AND OTHER PRIVATE NETWORK SERVICES TO ALL TYPES OF BUSINESSES IN EUROPE ACCORDING TO OFFICIALS IN PARIS AND BONN THE OFFICIALS ALSO DENIED REPORTS THAT THEY ARE NEAR A THREEWAY VENTURE WITH AMERICAN TELEPHONE & TELEGRAPH CO BASED IN NEW YORK THE TWOWAY PRIVATE NETWORK PLAN ENDORSED BY FRANCE TELECOM AND DEUTSCHE BUNDESPOST TELEKOM AT THE END OF SEPTEMBER IS THE FIRST PRODUCT OF SEVERAL MONTHS OF DISCUSSIONS ON EXPANDING THEIR TIES WITH DEREGULATION SPREADING THROUGH THE EUROPEAN PHONE MARKET AND THREATENING THEIR HOMEMARKET REVENUE EUROPE'S TWO BIGGEST STATEOWNED PHONE COMPANIES SEE EACH OTHER AS NATURAL ALLIES IN SEPTEMBER THEY BEGAN THEIR EUNETCOM JOINT VENTURE AIMED AT MULTINATIONALS AND LAST MONTH SIGNED A LETTER OF INTENT WITH THEIR FIRST CUSTOMER INTERNATIONAL BUSINESS MACHINES CORP BASED IN ARMONK NY THEY HAVE ALSO DISCUSSED SWAPPING SHARES IN EACH OTHER THE EUROPEAN COMMUNITY COMMISSION WHICH IS RESPONSIBLE FOR ENFORCEMENT OF EC COMPETITION RULES HAS YET TO GIVE ITS OPINION ON A DRAFT OF THE PLAN THAT THE COMPANIES PRESENTED IN BRUSSELS THE TWO COMPANIES HAVE BEEN TALKING SINCE LAST SPRING ABOUT WAYS TO COLLABORATE WITH AT&T BUT CONTRARY TO PUBLISHED REPORTS OVER THE WEEKEND OFFICIALS SAID THOSE TALKS HAVEN'T MADE ANY SIGNIFICANT PROGRESS DISPUTES OVER HOW TO SHARE CONTROL WITH AT&T OVER ANY THREEWAY VENTURE ARE A MAJOR OBSTACLE TO AGREEMENT AT&T OFFICIALS LIKEWISE DENIED ANY BREAKTHROUGH IN THE TALKS SAID AN AT&T SPOKESWOMAN IT WOULD TRULY BE SPECULATIVE TO SAY WE'RE ON THE VERGE OF AN AGREEMENT 9311090150 931109 INTERNATIONAL JAPANESE PANEL URGES EASING OF RULES THAT HURT CONSUMERS SUCH AS RICE BAN BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO A BLUERIBBON GOVERNMENT ADVISORY PANEL FIRED THE LATEST SHOT IN THE WAR ON JAPAN'S BUREAUCRACY CALLING FOR GREATER DEREGULATION TO BENEFIT CONSUMERS AND BOOST THE ECONOMY THE QUESTION IS WHETHER THE GOVERNMENT HAS THE WILL TO RESPOND THE PLAN RECOMMENDS A SERIES OF BOLD CHANGES INCLUDING LIFTING JAPAN'S LONGSTANDING BAN ON RICE IMPORTS THE GOAL IS TO RID THE ECONOMY OF THOUSANDS OF REGULATIONS THAT PREVENT CONSUMERS FROM SHARING THE BENEFITS OF JAPAN'S ECONOMIC SUCCESS THE PANEL SAID THERE SHOULD BE NO SANCTUARIES FROM THE DRIVE TO EASE RESTRICTIONS IT EVEN CALLED FOR A REDUCTION IN THE REGULATORY POWERS OF JAPAN'S ENTRENCHED BUREAUCRATS WHO STAND ACCUSED OF EMASCULATING EARLIER EFFORTS TO LIBERALIZE THE ECONOMY THE PLAN COMES HOWEVER AS PRIME MINISTER MORIHIRO HOSOKAWA IS ALREADY GRAPPLING WITH OTHER CONTENTIOUS DOMESTIC ISSUES RANGING FROM POLITICAL REFORM TO TAX CUTS WITH SO MUCH ON MR HOSOKAWA'S PLATE ANALYSTS SAID ANY MOVE TOWARD ECONOMIC REFORM WILL LIKELY BE PERFUNCTORY AT LEAST FOR THE NEAR TERM I DON'T EXPECT MUCH FROM DEREGULATION UNTIL WE GET A STRONGER GOVERNMENT SAID PETER MORGAN CHIEF ECONOMIST WITH MERRILL LYNCH JAPAN INC THE DRAFT SUBMITTED BY A 15MEMBER PANEL OF BUSINESSMEN LABOR LEADERS AND ACADEMICS IS THE LATEST SIGN OF A MOUNTING CAMPAIGN TO RID JAPAN OF THE VERY POLICIES THAT LIFTED THE NATION FROM POSTWAR RUIN TO ITS STATUS TODAY AS AN ECONOMIC SUPERPOWER PUBLIC REGULATIONS HAVE CONTRIBUTED TO THE DEVELOPMENT OF JAPANESE INDUSTRIES AND THE STABILITY OF THE PEOPLE'S LIVES ACCORDING TO THE INTERIM DRAFT TODAY HOWEVER REGULATIONS ADD TO THE RIGIDITY OF JAPAN'S SOCIOECONOMIC STRUCTURE OBSERVERS HAVE LONG AWAITED THE REMOVAL OF SUCH ECONOMIC SCAFFOLDING AS THE FINAL STEP IN JAPAN'S UNIQUE MODEL FOR ECONOMIC DEVELOPMENT STILL JAPAN'S RECENT HISTORY SHOWS THAT RECOMMENDATIONS ALONE WON'T RID THE NATION OF ITS SURPLUS OF RULES IN 1986 FORMER BANK OF JAPAN GOVERNOR HARUO MAEKAWA RELEASED A VAUNTED REPORT URGING JAPAN TO CHANGE FROM A POLICY RELYING ON DOMESTIC DEMAND FOR GROWTH RATHER THAN EXPORTS ALTHOUGH THE PLAN WAS HERALDED AS A MAJOR TURNING POINT IT LED NOWHERE IN THE END IN LATE OCTOBER ANOTHER PANEL OF EXPERTS PRESENTED MR HOSOKAWA WITH A DIFFERENT ECONOMIC REFORM PLAN ONE THAT WAS 12 YEARS IN THE MAKING BUT THE LENGTHY POLITICAL WRANGLING RENDERED THE PROPOSALS TOOTHLESS OR SO LAMENTED THE CHAIRMAN OF THAT PANEL THE NEW PLAN DRAFTED BY A TEAM OF AUTHORS LED BY GAISHI HIRAIWA THE CHAIRMAN OF THE INFLUENTIAL BUSINESS ORGANIZATION KEIDANREN APPEARS TO GO A STEP FURTHER THAN EARLIER EFFORTS AND IT CALLS FOR A GOVERNMENT TASK FORCE TO OVERSEE ITS IMPLEMENTATION AND A THIRDPARTY ORGANIZATION TO MONITOR PROGRESS BUT THE MECHANISM FOR SANCTIONS ISN'T CLEAR THE GREATEST OPPOSITION TO THE NEW PLAN MAY COME FROM BUSINESSES WHICH ARE RELYING ON PROTECTIVE REGULATIONS TO MAINTAIN JAPAN'S LIFETIME EMPLOYMENT SYSTEM DURING THE WORST ECONOMIC SLUMP IN DECADES STILL THE AUTHORS INSIST THAT OVER THE LONGTERM DEREGULATION WOULD BRING COMPETITION AND THUS STIMULATE ECONOMIC GROWTH THE FINAL VERSION OF THE PLAN WHICH WILL BE CONSIDERED BY JAPAN'S CABINET IS SLATED TO BE FINISHED BY THE END OF THE YEAR 9311090149 931109 WHO'S NEWS INFONOW CORP INFONOW CORP BOULDER COLO PETER GRIMM 29 YEARS OLD WAS NAMED A DIRECTOR OF THIS COMPUTER SOFTWARE COMPANY INCREASING THE BOARD'S SIZE TO FIVE MEMBERS MR GRIMM IS TREASURER AND CHIEF FINANCIAL OFFICER OF PRIVATELY HELD GILMAN SECURITIES CORP 9311090148 931109 MONDAY'S MARKETS STOCK PRICES EDGE UP BONDS FIRM INDUSTRIALS GAIN 447 TO CLOSE AT 364790 DOLLAR FINISHES LOWER BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS CONTINUED TO REBOUND AS BOND PRICES FIRMED AFTER LAST WEEK'S SELLOFF THE DOLLAR ENDED LOWER THE DOW JONES INDUSTRIAL AVERAGE FINISHED UP 447 POINTS AT 364790 AFTER GOING AHEAD 17 POINTS EARLIER IN THE SESSION STANDARD & POOR'S 500STOCK INDEX ADDED 064 TO 46021 AND THE NASDAQ COMPOSITE INDEX GAINED 322 TO 76621 I THINK MOST OF THE BOND SHAKEOUT IS OVER AND THEREFORE MOST OF THE STOCK SHAKEOUT IS AT OR NEAR AN END SAID PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES OTHER ANALYSTS WERE NOT SO SURE YESTERDAY'S RALLY IS JUST A KNEEJERK REBOUND AFTER LAST WEEK'S SELLOFF SAID RAO CHALASANI STOCK STRATEGIST AT KEMPER SECURITIES MR CHALASANI SAID THE STOCK MARKET HAS ALREADY DISCOUNTED 1994 EARNINGS WHILE LONGTERM INTEREST RATES WHICH INVESTORS HAD HOPED WOULD REMAIN BELOW 6 HAVE RISEN SIGNIFICANTLY DURING THE PAST MONTH CASTING A FURTHER PALL OVER THE MARKET WHAT'S MORE THERE'S LITTLE CHANCE OF MORE GOOD NEWS ON THE INFLATION FRONT WHICH WOULD HELP REVERSE THE RECENT UPTURN IN RATES HE SAID ONE OF THE FIRST PIECES OF DATA THAT WILL SHED LIGHT ON THE INFLATION PICTURE IS TODAY'S REPORT ON OCTOBER PRODUCER PRICES MOST WALL STREET ANALYSTS EXPECT THE REPORT TO SHOW A 02 RISE IN WHOLESALE PRICES DON FINE CHIEF MARKET ANALYST AT CHASE SECURITIES SAYS HE THINKS THE MARKET'S REACTION TO THE REPORT WILL BE MUTED BECAUSE MOST INVESTORS WILL BE HESITANT TO MAKE BIG BETS BEFORE TOMORROW'S MORE CRUCIAL REPORT ON CONSUMER PRICES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 037 TO 11101 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 231211060 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1176 ISSUES ADVANCED AND 917 DECLINED BOND PRICES GAINED THE TREASURY'S SUE ROSE LESS THAN 1/8 POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT ITS YIELD WAS UNCHANGED AT 620 THE DOLLAR SLUMPED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16853 MARKS AND 10783 YEN COMPARED WITH 16940 MARKS AND 10820 YEN FRIDAY 9311090146 931109 ALLEGHENY LUDLUM CORP PLAN PITTSBURGH ALLEGHENY LUDLUM CORP AND ATHLONE INDUSTRIES INC SAID THAT ATHLONE SHAREHOLDERS APPROVED THE PREVIOUSLY ANNOUNCED ACQUISITION OF ATHLONE BY ALLEGHENY LUDLUM THE ACQUISITION A STOCK SWAP VALUED AT 107 MILLION IS EXPECTED TO SOLIDIFY ALLEGHENY LUDLUM'S LEAD AS THE NATION'S LARGEST SPECIALTY STEEL PRODUCER ATHLONE BASED IN PARSIPPANY NJ MANUFACTURES SPECIALTY STEELS IN PLATE FORM AND REPORTED 1992 SALES OF 207 MILLION THE ACQUISITION'S CLOSING IS EXPECTED LATER THIS WEEK 9311090145 931109 CANADA BANKS DROP PRIME RATES TORONTO SEVERAL MAJOR CANADIAN BANKS LOWERED THEIR PRIME LENDING RATES ONEQUARTER PERCENTAGE POINT TO 55 THE LOWEST LEVEL IN 20 YEARS THE NEW RATE IS EFFECTIVE TODAY THE REDUCTION WAS PROMPTED BY RECENT DECLINES IN CANADIAN SHORTTERM INTEREST RATES BROUGHT ON BY THE COUNTRY'S SLOW ECONOMIC RECOVERY AND BY SOFT LOAN DEMAND THE PRIME RATE IS A BENCHMARK FOR VARIOUS LENDING CHARGES 9311090144 931109 INTERNATIONAL SWISS INDUSTRIAL CAPACITY ZURICH INDUSTRIAL CAPACITY UTILIZATION IN SWITZERLAND ROSE IN THE THIRDQUARTER TO 801 FROM A REVISED 797 IN THE SECONDQUARTER ACCORDING TO A SURVEY BY THE SWISS FEDERAL INSTITUTE OF TECHNOLOGY'S CENTER FOR RESEARCH OF ECONOMIC ACTIVITY DESPITE THE INCREASE INDUSTRIAL CAPACITY UTILIZATION IN THE THIRDQUARTER WAS BELOW THE AVERAGE OF 845 SEEN DURING THE PAST 15 YEARS THE SURVEY NOTED IT SAID THAT CAPACITY UTILIZATION WAS DOWN IN THE FOOD WATCHMAKING AND CHEMICAL INDUSTRIES IN THE THIRDQUARTER BUT WAS UP IN THE MACHINERY TEXTILE WOOD AND PLASTICS INDUSTRIES 9311090143 931109 VALHI UNIT COMPLETES OFFERING DALLAS VALHI INC SAID ITS VALCOR INC UNIT COMPLETED A PUBLIC OFFERING OF 100 MILLION AGGREGATE PRINCIPAL AMOUNT OF 9 5/8 SENIOR NOTES DUE 2003 ABOUT 75 MILLION OF THE PROCEEDS WILL BE DISTRIBUTED TO VALHI WITH THE BALANCE RETAINED BY VALCOR FOR GENERAL CORPORATE PURPOSES VALHI WILL USE A PORTION OF ITS SHARE TO PREPAY THE REMAINING 50 MILLION PRINCIPAL BALANCE OUTSTANDING OF ITS 12 1/2 SENIOR SUBORDINATED NOTES DUE 1998 VALHI IS AN INDUSTRIAL MANAGEMENT CONCERN WITH INTERESTS IN THE SUGARREFINING INDUSTRY THROUGH VALCOR IT'S INVOLVED IN FOREST PRODUCTS FAST FOOD AND HARDWARE PRODUCTS UNDERWRITERS FOR THE OFFERING WERE MORGAN STANLEY & CO AND MERRILL LYNCH & CO 9311090142 931109 WHO'S NEWS AMERICAN BARRICK RESOURCES CORP AMERICAN BARRICK RESOURCES CORP TORONTO THIS GOLD MINING CONCERN SAID IT NAMED BRIAN MULRONEY 54 YEARS OLD AS A DIRECTOR MR MULRONEY WHO SERVED AS PRIME MINISTER OF CANADA FOR NINE YEARS BEFORE STEPPING DOWN IN JUNE ALSO WAS NAMED A DIRECTOR OF HORSHAM CORP A HOLDING COMPANY THAT INDIRECTLY CONTROLS 20 OF AMERICAN BARRICK 9311090141 931109 BANKAMERICA'S PORTFOLIO DRAWS IMPROVED BIDS BANK GIVES SMALLER DISCOUNT ON REALESTATE LOANS THAN AN EARLIER SALE BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL BANKAMERICA CORP AGREED TO SELL A LARGE PORTFOLIO OF DISTRESSED COMMERCIAL REALESTATE LOANS AT A MUCH SMALLER DISCOUNT THAN IT GRANTED IN A SIMILAR SALE EARLIER THIS YEAR EVIDENCE THAT BIDDING FOR SUCH ASSETS HAS BECOME FAR MORE COMPETITIVE IN A SEALEDBID AUCTION AN INVESTMENT GROUP HEADED BY GOLDMAN SACHS & CO AGREED TO BUY A PORTFOLIO OF REALESTATE LOANS WITH A FACE VALUE OF ABOUT 340 MILLION FOR SLIGHTLY MORE THAN 70 OF FACE VALUE OR ABOUT 240 MILLION ACCORDING TO SEVERAL PEOPLE FAMILIAR WITH THE GROUP'S BID IN JULY MORGAN STANLEY & CO PAID BANKAMERICA BASED IN SAN FRANCISCO 475 MILLION FOR A LOAN PORTFOLIO OR JUST 35 OF ITS FACE VALUE OF 135 BILLION ACCORDING TO THE PROSPECTUS FOR BONDS SOLD BY MORGAN STANLEY TO FINANCE THE PURCHASE AT THAT TIME THERE WERE FEWER POTENTIAL BUYERS WILLING TO BET THAT THE COMMERCIAL REALESTATE MARKET HAD BOTTOMED OUT SEVERAL INDIVIDUALS FAMILIAR WITH THE BANKAMERICA PORTFOLIO THAT THE GOLDMAN SACHS FUND WILL BUY HOWEVER NOTED THAT MANY OF THE LOANS IN IT WERE OF A HIGHER QUALITY THAN IN THE EARLIER ONE MANY INVOLVED BORROWERS WHO WERE MAKING REQUIRED PAYMENTS BUT WHOSE BUILDINGS HAD DROPPED IN VALUE TO LESS THAN THEIR LOAN BALANCES THE EARLIER PORTFOLIO SAYS ONE BIDDER WAS LADEN WITH LOANS ON WHICH NO PAYMENTS WERE BEING MADE THIS HIGHER QUALITY THEY SAY WAS A STRONG FACTOR IN BOOSTING PRICES ALTHOUGH BANKAMERICA OFFICIALS DECLINED TO COMMENT ON THE PRICE A SPOKESMAN SAID THE BANK EXPECTED TO REPORT A GAIN ON THE SALE SUGGESTING THAT THE ASSETS HAD ALREADY BEEN WRITTEN DOWN TO BELOW THE SALE PRICE OFFICIALS AT GOLDMAN SACHS WHOSE WHITEHALL STREET REAL ESTATE LIMITED PARTNERSHIP III WAS THE BUYER DECLINED TO COMMENT THE IMPROVED PRICING IS CONSISTENT WITH A STEADY RISE IN PRICES ON BULK SALES DUE TO INCREASING COMPETITION AMONG WOULDBE BUYERS IN SEPTEMBER FOR EXAMPLE TRAVELERS CORP SOLD A REALESTATE PORTFOLIO TO AN INVESTMENT FUND SET UP BY FINANCIER GEORGE SOROS FOR 634 MILLION MORE THAN 75 OF ORIGINAL VALUE THE MORE ATTRACTIVE PRICES NOW BEING FETCHED BY SUCH ASSETS ARE LIKELY TO MAKE BANKS AND INSURANCE COMPANIES WHO WANT TO TRIM THEIR REALESTATE EXPOSURE LESS RELUCTANT TO UNLOAD ASSETS IN BULK THE LATEST BANKAMERICA PORTFOLIO CONTAINED LOANS ON OFFICE BUILDINGS INDUSTRIAL AND RETAIL PROPERTIES AND SOME APARTMENT BUILDINGS ACCORDING TO ONE BIDDER BANKAMERICA OBTAINED MUCH OF THE ASSETS THROUGH ITS MERGER WITH SECURITY PACIFIC CORP RUNNERUP BIDS ON THE PORTFOLIO WERE RECEIVED FROM MORGAN STANLEY LEHMAN BROTHERS INC AND COLONY CAPITAL INC A LOS ANGELES REAL ESTATE INVESTMENT COMPANY BANKAMERICA'S STOCK CLOSED YESTERDAY AT 41875 A SHARE UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9311090140 931109 BAUSCH & LOMB'S NEW LENSES ROCHESTER NY BAUSCH & LOMB INC SAID IT HAS INTRODUCED SINGLEUSE DISPOSABLE CONTACT LENSES WHICH WILL COST AN AVERAGE OF 3 A PAIR FOR PEOPLE WHO ONLY WANT TO WEAR THEM FOR SPECIAL OCCASIONS THE LENSES CALLED OCCASIONS EXTEND BAUSCH'S LUCRATIVE NEW BUSINESS OF FREQUENTREPLACEMENT LENSES WHICH ARE REPLACED ONCE EVERY TWO WEEKS OR ONCE A MONTH THOSE LENSES COST 150 TO 250 A YEAR FOR AN AVERAGE DAILY COST OF ONLY 41 CENTS TO 68 CENTS OCCASIONS ARE BEING SOLD THROUGH ABOUT 300 OUTLETS OR 5 OF BAUSCH'S TOTAL DISTRIBUTION BASE A SPOKESWOMAN SAID THE ROLLOUT WOULD BE COMPLETE IN THE NEXT SEVERAL MONTHS 9311090139 931109 THIS NEW YORK CLUB WON'T SEARCH THE DATABASES MOST OF US ARE ON BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THIS COMPUTER DECIDES WHETHER YOU GET TO BE ON LINE A MACINTOSH POWERBOOK IS THE ARBITER OF HIP AT MANHATTAN'S LATEST TRENDY HANGOUT PRIVE PRONOUNCED PREEVAY FORGET STANDING BEHIND VELVET ROPES PRAYING THAT THE DISCERNING DOORMAN MIGHT LET YOU IN IF YOU'RE NOT ON PRIVE'S DATABASE YOU'RE OUT OF LUCK THINK OF IT AS THE COMPUTERIZED FOREBRAIN OF THE MAITRE D' SAYS JOHN DIZARD A COLUMNIST FOR THE NEW YORK OBSERVER AND FRIEND OF PRIVE'S OWNERS OPENING MONDAY ON THE UPPER EAST SIDE PRIVE WILL HAND FREE MEMBERSHIP CARDS TO 1000 OF THOSE WHOSE NAMES ARE ON THE DATABASE THE LIST WAS CULLED FROM 37000 ACQUAINTANCES WHOM PROPRIETORS MICHAEL VAN CLEEF AULT GARY PRYOR AND MARC BIRON HOBNOB WITH ON THE NEWPORTPALM BEACHPARIS CIRCUIT NO CARD MEANS NO RESERVATION AND NO ENTRY THE OWNERS INSIST THEY ARE LIMITING ACCESS BECAUSE OF SPACE AND INDEED PRIVE HAS ONLY THREE ROOMS WITH A MAXIMUM CAPACITY OF ABOUT 200 BUT MR PRYOR CONCEDES THAT THE STRINGENT EXCLUSIVITY GENERATES THE BUZZ NEEDED TO ATTRACT THE CHIC SET WE WANT THIS TO BE LIKE THE SECONDDATE SCENARIO HE SAYS YOU GO OUT AND HAVE A NICE TIME YOU ASK FOR A SECOND DATE AND SHE SAYS NO YOU IMMEDIATELY WANT TO GO OUT EVEN MORE PRIVE'S ATMOSPHERE MR PRYOR SAYS WILL BE CASUAL COMFORTNESS BUT WITH HIGH ENERGY WHICH IN CLUBSPEAK MEANS MODELS SITTING ON THE ARMS OF OVERSTUFFED CHAIRS THE WHOLE POINT OF CREATING A SCENE IS NOT FOR YOU AND YOUR WIFE TO HAVE TWO GLASSES OF PELLEGRINO MR DIZARD SAYS IT'S ABOUT BUYING TWO BOTTLES OF CHAMPAGNE FOR A BUNCH OF MODELS PEOPLE WHO MAY WAIT A LONG TIME TO SEE A PRIVE CARD ARE BOND TRADERS WHOSE TALK ABOUT INTEREST RATES REALLY DOES KILL A ROOM SAYS MR PRYOR WHO ONCE TRADED BONDS HIMSELF AT JP MORGAN & CO THE KIND OF PERSON WE DON'T WANT IS THE GUY WHO RETURNS HOME EARLY FROM THE HAMPTONS SO HE CAN READ BARRON'S SUNDAY TO PREPARE FOR WORK THE NEXT DAY MR AULT IS QUICK TO NOTE HOWEVER THAT SOME OF PRIVE'S BACKERS ARE ON WALL STREET AND THAT SOME OF THE BEST PEOPLE I KNOW WORK THERE PAT ROTHSTEIN A SENIOR BOND TRADER AT BEAR STEARNS COS SAYS PRIVE SOUNDS EVEN STUFFIER THAN THOSE IT INTENDS TO EXCLUDE PEOPLE IN BUSINESS ARE A LOT MORE ECLECTIC THAN MANY THINK HE SAYS I DON'T KNOW ANYONE WHO WOULD TALK ABOUT INTEREST RATES IF NAOMI CAMPBELL WERE AROUND 9311090137 931109 WHO'S NEWS GAYLORD ENTERTAINMENT CO GAYLORD ENTERTAINMENT CO NASHVILLE TENN JACK VAUGHN 56 YEARS OLD HAS BEEN APPOINTED TO THE NEWLY CREATED POSITION OF PRESIDENT OF THE OPRYLAND HOSPITALITY & ATTRACTIONS GROUP OF THIS ENTERTAINMENT AND COMMUNICATIONS COMPANY MR VAUGHN HAD BEEN GENERAL MANAGER OF THE OPRYLAND HOTEL 9311090136 931109 WHO'S NEWS ARNOLDO MONDADORI EDITORE SPA ARNOLDO MONDADORI EDITORE SPA MILAN GIOVANNI COBOLLI GIGLI WAS NAMED MANAGING DIRECTOR OF THIS PUBLISHING COMPANY HE LEAVES RCS WHERE HE WAS RESPONSIBLE FOR THE BOOK AND MAGAZINE SECTION OF FABBRI/RCS RIZZOLI LIBRI AND HAD BEEN MANAGING DIRECTOR FOR GRUPPO EDITORIALE FABBRI SINCE JUNE 1991 9311090135 931109 PEPPERAND SALT OR A CAT SAIL A CATAMARAN THOUGH I HAVE NO DOUBT THEY CAN AND STAGS DON'T OFTEN STAGGER AND COWS ARE SELDOM COWARDLY AS THAT'S WHAT I DO AVOWEDLY ALL OF US SCHOOL BUS DRIVERS 9311090134 931109 WHO'S NEWS AUTOCLAVE ENGINEERS INC AUTOCLAVE ENGINEERS INC ERIE PA JOHN A DARR 45 YEARS OLD WAS NAMED VICE PRESIDENT GENERAL MANAGER A NEW POSITION AT THIS MAKER OF ENGINEERED PRODUCTS FOR CHEMICAL RESEARCH AND RELATED INDUSTRIAL PROCESS MARKETS MR DARR WAS FORMERLY VICE PRESIDENT OF OPERATIONS A POSITION THAT WILL NOT BE FILLED ALSO THE COMPANY HIRED MICHAEL T ORAM 43 AS VICE PRESIDENT OF MANUFACTURING A POSITION VACANT FOR SEVERAL MONTHS 9311090133 931109 PNC BANK OPENS DUBLIN OFFICE PITTSBURGH PNC BANK CORP A LARGE BANKING ORGANIZATION SAID IT OPENED A DUBLIN OFFICE OF ITS MUTUAL FUND SERVICES GROUP TO SERVICE OFFSHORE FUNDS THE DUBLIN OFFICE IS A SUBSIDIARY OF PNC'S MUTUAL FUND ADMINISTRATIVE AND PROCESSING SUBSIDIARY PFPC INC WHICH IS BASED IN WILMINGTON DEL PNC EXPECTS TO PROVIDE SERVICES IN THE NEW DUBLIN OFFICE BY THE END OF 1993 FOR CLIENTS WITH ABOUT 15 BILLION IN ASSETS A COMPANY SPOKESMAN SAID 9311090131 931109 TECHNOLOGY SMITHKLINE BEGINS A REBATE PROGRAM FOR ANTIULCER DRUG BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL PHILADELPHIA SMITHKLINE BEECHAM LAUNCHED A CONSUMERREBATE PROGRAM AIMED DIRECTLY AT ITS COMPETITORS' HIGHER PRICES FOR PRESCRIPTION ANTIULCER MEDICATIONS USING TACTICS USUALLY RESERVED FOR CONSUMER PRODUCTS SMITHKLINE IS USING POINTOFSALE DISPLAYS AND DISCOUNT COUPONS TO GET THE MESSAGE TO CONSUMERS THAT ITS PRESCRIPTION DRUG TAGAMET IS CHEAPER THAN THE MARKET LEADER ZANTAC MADE BY GLAXO INC A UNIT OF GLAXO PLC AS WELL AS OTHER COMPETING DRUGS THE STRATEGY APPEARS TO BE THE FIRST TIME A DRUG COMPANY HAS MADE HEADTOHEAD COST COMPARISONS OF PRESCRIPTION DRUGS IN PITCHES DIRECTLY TO CONSUMERS DIRECTTOCONSUMER PROMOTIONS TEND TO FOCUS ON A DRUG'S EFFICACY OR SIMPLY ALERT A CONSUMER THAT A TREATMENT EXISTS SMITHKLINE'S STRATEGY IS REVOLUTIONARY SAID HEMANT SHAH AN INDEPENDENT DRUG ANALYST BECAUSE THE LOWER PRICE BUTTRESSES TAGAMET AGAINST EROSION BY GENERIC COMPETITION EXPECTED TO HIT AFTER ITS PATENT EXPIRES IN MAY AND TAGAMET'S MARKET SHARE CAN EXPLODE IF IT SUCCEEDS IN LURING AWAY COSTCONSCIOUS ZANTAC CUSTOMERS HE SAID GLAXO CLAIMS ABOUT 50 OF THE US ANTIULCERDRUG MARKET WHILE SMITHKLINE SAYS IT HAS BETWEEN 20 AND 25 OF THE MARKET WHICH IT ESTIMATES AT 25 BILLION A YEAR ACCORDING TO SMITHKLINE ZANTAC IS THE MOST EXPENSIVE ANTIULCER DRUG OF ITS TYPE WHILE TAGAMET IS THE LEAST EXPENSIVE ZANTAC COSTS AN AVERAGE OF 8946 A MONTH ACCORDING TO DATA BY WALSH AMERICA AND USED BY SMITHKLINE WHILE TAGAMET COSTS 28 LESS AT 6992 AFTER A 10 REBATE THE STRATEGY OF SELLING TAGAMET ON ITS LOWER PRICE HAS WORKED WELL FOR SMITHKLINE IN MANAGEDCARE MARKETS MR SHAH SAID NOW THE COMPANY WANTS TO SEE IF IT WORKS DIRECTLY ON PATIENTS A SURVEY OF USERS OF THE TWO LEADING DRUGS FOUND THAT 37 DIDN'T KNOW AN ALTERNATIVE EXISTS AND MOST DIDN'T KNOW ABOUT PRICE DIFFERENCES ACCORDING TO SMITHKLINE THROUGH ITS PATIENT AWARENESS PROGRAM THE COMPANY WILL TRY TO ALERT CUSTOMERS THAT TAGAMET IS CHEAPER IN HOPES THAT PATIENTS USING ZANTAC OR OTHER ANTIULCER DRUGS WILL RAISE THE ISSUE WITH THEIR DOCTORS ALTHOUGH ONLY PHYSICIANS CAN DECIDE WHICH DRUG IS BEST FOR INDIVIDUAL CASES PATIENTS SHOULD GET INVOLVED AND ASK THEIR DOCTORS WHETHER THE MOST AFFORDABLE DRUG IS AN OPTION TO CONSIDER SAID JERRY KARABELAS PRESIDENT OF THE NORTH AMERICAN PHARMACEUTICALS UNIT OF SMITHKLINE BEECHAM A UNIT OF SMITHKLINE BEECHAM PLC IN A WRITTEN STATEMENT THE DISPLAY MATERIALS HAVE GONE OUT TO 50000 PHARMACIES ACCORDING TO A SMITHKLINE SPOKESMAN APPROXIMATELY 100000 PHYSICIANS HAVE BEEN CONTACTED BY MAIL ABOUT THE PROGRAM AND WILL RECEIVE THE BROCHURES AND COUPONS TO DISTRIBUTE TO PATIENTS HE SAID A SPOKESWOMAN FOR GLAXO SAID THE COMPANY DIDN'T HAVE PLANS FOR A SIMILAR PROGRAM SHE ADDED PHYSICIANS WHO BASE THERAPY BASED ON PRICE HAVE ALWAYS HAD ALTERNATIVES TO ZANTAC DESPITE THAT FACT ZANTAC CONTINUES TO GROW DR KARABELAS SAID IN AN INTERVIEW IF THIS FIRST STEP IN THE MARKETING PROGRAM IS SUCCESSFUL CLEARLY THERE COULD BE A LOT MORE COMING BUT HE DECLINED TO ELABORATE DR KARABELAS DENIED THAT THE REBATE WAS PART OF A STRATEGY AGAINST GENERIC COMPETITION TEN DOLLARS ISN'T GOING TO MAKE A SIGNFICANT DIFFERENCE WITH GENERICS HE SAID SMITHKLINE IS TRYING TO INCREASE ITS MARKET SHARE BEFORE TAGAMET'S PATENT EXPIRATION HE SAID IN THE HOPES OF ENDING UP WITH A LARGER POCKET OF DOLLARS AFTER GENERICS ENTER THE MARKET 9311090130 931109 FINANCING BUSINESS CERIDIAN CORP CERIDIAN CORP MINNEAPOLIS SAID IT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF FOUR MILLION DEPOSITARY SHARES PLUS AN OVERALLOTMENT OPTION FOR AN ADDITIONAL 600000 DEPOSITARY SHARES THE DATA SERVICES CONCERN SAID THAT EACH DEPOSITARY SHARE REPRESENTS A 1/100TH INTEREST IN A SHARE OF ITS CUMULATIVE CONVERTIBLE EXCHANGEABLE PREFERRED STOCK THE DEPOSITARY SHARES WILL BE SOLD FOR 50 EACH FOR AN AGGREGATE OFFERING AMOUNT OF 200 MILLION CERIDIAN SAID IT WILL USE ABOUT 175 MILLION OF THE PROCEEDS TO REDEEM ALL THE AGGREGATE FACE AMOUNT OUTSTANDING OF ITS 85 CONVERTIBLE SUBORDINATED DEBENTURES DUE JUNE 15 2011 INCLUDING THE PREMIUM AND ACCRUED AND UNPAID INTEREST THE REMAINING PROCEEDS WILL BE USED FOR WORKING CAPITAL AND OTHER GENERAL CORPORATE PURPOSES INCLUDING POSSIBLE STRATEGIC ACQUISITIONS CERIDIAN SAID THE OFFERING'S MANAGING UNDERWRITER IS BEAR STEARNS & CO 9311090129 931109 NEXTEL IS SAID TO BUY LICENSES FROM MOTOROLA DEAL FOR UP TO 18 BILLION COVERS WIRELESS SERVICES IN LUCRATIVE MARKETS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NEXTEL COMMUNICATIONS INC IS EXPECTED TO ANNOUNCE TODAY THAT IT WILL ACQUIRE VALUABLE MOBILERADIO LICENSES AND PROPERTIES HELD BY MOTOROLA INC FOR AS MUCH AS 18 BILLION IN STOCK SUCH AN AGREEMENT WOULD GIVE NEXTEL A RADIODISPATCH COMPANY BASED IN RUTHERFORD NJ THE RIGHT TO PROVIDE WIRELESS PHONE AND DATA SERVICES IN SEVERAL HIGHLY LUCRATIVE REGIONS INCLUDING NEW ENGLAND SEVERAL MIDATLANTIC STATES CALIFORNIA AND TEXAS THE ACCORD ALSO WOULD GIVE NEXTEL THE INDIRECT BACKING OF MOTOROLA BOOSTING NEXTEL'S CHANCES OF RAISING MILLIONS OF DOLLARS IN CAPITAL TO FUND FUTURE WIRELESS OPERATIONS NEXTEL ALONG WITH DIAL PAGE INC GREENVILLE SC AND DENVERBASED CENCALL COMMUNICATIONS INC OPERATES LARGELY OUTDATED RADIODISPATCH OR PAGING SYSTEMS BUT THROUGH A SPATE OF MAJOR ACQUISITIONS IN RECENT WEEKS THE THREE COMPANIES HAVE EMERGED AS THE DOMINANT PLAYERS IN THEIR INDUSTRY MORE SIGNIFICANTLY THEY POSSESS THE RIGHT TO BUILD EXTENSIVE WIRELESS NETWORKS AND COMPETE DIRECTLY WITH THE TWO CELLULAR COMPANIES THAT OPERATE IN EACH REGION FOR MOTOROLA THE BIGGEST OPERATOR OF DISPATCH SYSTEMS THE DECISION TO SELL A MAJOR PORTION OF ITS RADIO LICENSES IS IN KEEPING WITH ITS INTENTION TO SELL TECHNOLOGY AND EQUIPMENT RATHER THAN PROVIDE SERVICES A FEW WEEKS AGO THE SCHAUMBURG ILL COMPANY SOLD 42 OF ITS DISPATCHSERVICE LICENSES TO CENCALL AND DIAL PAGE IN EXCHANGE FOR STOCK VALUED AT ABOUT 12 BILLION MOTOROLA HAD SAID AT THE TIME THAT IT PLANNED TO SELL OFF A GOOD PORTION OF ITS REMAINING LICENSES THOSE TRANSACTIONS GAVE MOTOROLA ROUGHLY A 30 STAKE IN CENCALL AND A 345 STAKE IN DIAL PAGE ON A DILUTED BASIS MOTOROLA ALSO HAD SAID THAT IT PLANNED TO EVENTUALLY REDUCE ITS HOLDINGS IN EACH OF THOSE COMPANIES TO LESS THAN 20 MOTOROLA IS GUNNING TO BE THE LEADING EQUIPMENT PROVIDER TO THE BURGEONING WIRELESS INDUSTRY IT STANDS TO REAP IMMENSE PROFITS IF THE MOBILERADIO COMPANIES' WIRELESS SYSTEMS TAKE OFF IN TODAY'S DEAL MOTOROLA IS EXPECTED TO RECEIVE AN EQUITY STAKE OF ABOUT 20 IN NEXTEL IN EXCHANGE FOR ITS LICENSES ACCORDING TO PEOPLE FAMILIAR WITH THE AGREEMENT BECAUSE THE LICENSES COVER PROPERTIES IN DENSELY POPULATED AREAS OF NEW ENGLAND AND PARTS OF CALIFORNIA THEY ALSO ARE EXPECTED TO BE MORE VALUABLE THAN THE LICENSES SOLD TO DIAL PAGE AND CENCALL SPECIALIZED MOBILERADIO COMPANIES LIKE NEXTEL AND CENCALL HAVE LONG EXISTED AWAY FROM THE SPOTLIGHT PROVIDING ONEWAY DISPATCH SERVICES ON OUTDATED ANALOG RADIOS TO CAB COMPANIES AND OTHER FLEET OPERATIONS BUT THANKS TO RELAXATION OF FEDERAL RULES THEY NOW ARE ALLOWED TO CONVERT THEIR STATICFILLED SYSTEMS TO DIGITAL ONES AND TO PROVIDE WIRELESS PHONE AND DATA SERVICES ON HANDSETS THAT LOOK LIKE CELLULAR PHONES THE FEDERAL COMMUNICATIONS COMMISSION STILL MAY AUCTION OFF ADDITIONAL RADIO FREQUENCIES FOR DISPATCH PROVIDERS IN THE INTEREST OF BOOSTING COMPETITION FOR ENTRENCHED CELLULAR PROVIDERS SUCH AS THE BABY BELLS BUT THE RECENT FLURRY OF LICENSE ACQUISITIONS BY THE THREE LEADING MOBILERADIO CONTENDERS PROBABLY REPRESENTS THE BULK OF SUCH DEALS IN THE INDUSTRY COMPARED WITH WHAT LIES AHEAD FOR THE MOBILERADIO FIRMS ACQUIRING THE LICENSES APPEARS TO HAVE BEEN THE EASY PART NEXTEL AND OTHERS HAVE YET TO FULLY DEPLOY THEIR TECHNOLOGY IN ANY MARKET A TASK THAT ENGINEERS SAY WILL PROVE SOMETHING OF A TECHNOLOGICAL CHALLENGE AND THEY ALSO MUST MARKET THEIR WIRELESS SYSTEMS TO BUSINESSES AND CORPORATIONS IN COMPETITION WITH CELLULAR OPERATORS THAT HAVE DEEPER POCKETS MORE EXPERIENCE AND AN ESTABLISHED PRESENCE WHETHER THE TRIO CAN ACHIEVE THIS IS STILL UP IN THE AIR BUT BY BUYING A STAKE IN NEXTEL DIAL PAGE AND CENCALL IT APPEARS THAT MOTOROLA AT LEAST IS BETTING THAT THEY WILL 9311090128 931109 WHO'S NEWS TERRA INDUSTRIES INC TERRA INDUSTRIES INC SIOUX CITY IOWA W MARK ROSENBURY 46 YEARS OLD FORMERLY VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WAS NAMED TO THE VACANT POSITION OF EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS PRODUCER OF FERTILIZER CROPPROTECTION PRODUCTS AND SEED AND SERVICES FOR AGRICULTURE FRANCIS G MEYER 41 FORMERLY VICE PRESIDENT AND CONTROLLER SUCCEEDS MR ROSENBURY GEORGE H VALENTINE 45 FORMERLY ASSISTANT GENERAL COUNSEL AT HOUSEHOLD FINANCE A UNIT OF HOUSEHOLD INTERNATIONAL INC WAS NAMED VICE PRESIDENT GENERAL COUNSEL AND CORPORATE SECRETARY SUCCEEDING BEN KEISLER WHO LEFT THE COMPANY IN JUNE E WAYNE SMITH 47 FORMERLY GENERAL MANAGER OF TERRA'S RIVERSIDE PRODUCTS UNIT WAS NAMED TO THE NEW POST AT TERRA OF VICE PRESIDENT MARKETING 9311090127 931109 MARKETING & MEDIA KIMBERLY TO LAUNCH A PREMIUM DIAPER WITH VELCRO CLOSURE BY VALERIE REITMAN AND WENDY BOUNDS STAFF REPORTERS OF THE WALL STREET JOURNAL KIMBERLYCLARK CORP ONCE AGAIN BEATING RIVAL PROCTER & GAMBLE CO WITH PRODUCT INNOVATION WILL LAUNCH A PREMIUM DISPOSABLE DIAPER FEATURING VELCROCLOSURES AND A CLOTHLIKE EXTERIOR THE NEW DIAPER HUGGIES SUPREME WILL RETAIL FOR APPROXIMATELY 20 TO 25 MORE THAN KIMBERLY'S OTHER HUGGIES DIAPERS WHICH SELL FOR ABOUT 21 CENTS EACH THE UNISEX DIAPERS WHICH FEATURE A SOFTER SHELL THAN OTHER DISPOSABLES WITH PLASTIC EXTERIORS WILL ROLL OUT ON THE WEST COAST IN JANUARY NATIONWIDE DISTRIBUTION IS EXPECTED BY YEAR END THE DALLAS COMPANY IS BETTING THAT THE VELCRO FASTENERS WHICH IT SAYS RESIST POWDERS AND LOTIONS WILL ENTICE PARENTS TO PAY MORE FOR THE DIAPER BUT THAT'S A BIG GAMBLE CONSUMERS HAVE BECOME ADDICTED TO LOWER PRICES IN THE ONGOING DIAPER WAR BETWEEN KIMBERLYCLARK AND PROCTER & GAMBLE MAKER OF PAMPERS AND LUVS AND PRIVATELABEL DIAPERS HAVE GROWN IN POPULARITY WITH QUALITY IMPROVEMENTS AND LOWER PRICES MOREOVER KIMBERLYCLARK MAY RUN INTO PROBLEMS OBTAINING SHELF SPACE FOR ITS NEW PRODUCT RETAILERS WITH A SLEW OF NEW DIAPERS ON THEIR SHELVES ARE ALREADY OVERWHELMED BY THE PRODUCTS' VARIETY OF SIZES THICKNESSES AND GENDERSPECIFIC PADDING KIMBERLYCLARK LAST YEAR INTRODUCED A VERY THIN SUPERABSORBENT DIAPER KNOWN AS HUGGIES ULTRATRIM WHICH NOW REPRESENTS 70 OF ITS DIAPER SALES THE COMPANY SAID IT WILL BEGIN SHIPPING THE ULTRATRIM DIAPERS IN EUROPE IN JANUARY KIMBERLY STILL SELLS ITS THICKER HUGGIES BABY STEPS WHICH IT SAYS WILL EVENTUALLY BE PHASED OUT P&G BELATEDLY COUNTERED THE INTRODUCTION OF ULTRATRIM WITH A SUPERABSORBENT DIAPER CALLED ULTRADRY THAT WAS INTRODUCED NATIONWIDE THIS FALL ALREADY GROWING NUMBERS OF RETAILERS HAVE BEEN PHASING OUT P&G'S SECONDARY BRAND LUVS TO CREATE MORE ROOM FOR HIGHER MARGIN PRIVATELABEL DIAPERS WHILE LUVS WAS ORIGINALLY LAUNCHED BY P&G TO BE ITS PREMIUM BRAND THE COMPANY RECENTLY REPOSITIONED LUVS AS A NOFRILLS MIDDLEPRICED DIAPER P&G DECLINED COMMENT ON KIMBERLYCLARK'S ANNOUNCEMENT THE NEWEST HUGGIES DIAPER WILL LIKELY CANNIBALIZE OTHER HUGGIES VARIETIES TOM FALK KIMBERLYCLARK'S GROUP PRESIDENT SAID THE COMPANY EXPECTS THE DIAPER TO DRAW CUSTOMERS FROM ALL LABELS INCLUDING THE ULTRATRIMS OVERALL HE SAID THE DIAPER WILL BOLSTER HUGGIES TOTAL SALES LEHMAN BROS ANALYST BONITA AUSTIN AGREES THEIR SUCCESS WITH ULTRATRIM MEANS CONSUMERS WILL PAY MORE IF THERE IS AN INHERENT ADVANTAGE TO THE PRODUCT AND THIS IS AN EVEN BETTER DIAPER THAN ULTRATRIM 9311090126 931109 VENEZUELA'S PRESSURE ON CLEAN AIR ACT STIRS ENVIRONMENTAL TRADE CONTROVERSY BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL VENEZUELA IS PRESSING HARD TO ALTER PROPOSED CLEAN AIR ACT RULES ON GASOLINE IT EXPORTS TO THE US WORRYING SOME ENVIRONMENTALISTS THAT A CHANGE COULD LEAD TO THE WEAKENING OF OTHER IMPORTANT PIECES OF THE ACT THE RULES DEAL WITH THE COMPLEX FORMULAS THAT WILL DETERMINE THE AMOUNT OF POLLUTIONCAUSING COMPONENTS ALLOWED IN GASOLINE BEGINNING IN 1995 AND HOW THE FORMULAS DIFFER FOR US AND FOREIGN REFINERS THE CONTROVERSY CREATES AN UNUSUAL ALLIANCE OF ENVIRONMENTALISTS AND US OIL COMPANIES PITTED AGAINST VENEZUELA THE FIGHT ALSO RAISES THORNY TRADE ISSUES THAT HAVE LED THE STATE DEPARTMENT AND THE US TRADE REPRESENTATIVE TO URGE THE ENVIRONMENTAL PROTECTION AGENCY TO GRANT VENEZUELA'S REQUEST THE EPA IS DUE TO MAKE A DECISION BY DEC 15 IF PETROLEOS DE VENEZUELA SA KNOWN AS PDVSA SUCCEEDS SOME REGULATORS WORRY THAT IT COULD CREATE A PRECEDENT THAT DISSOLVES IMPORTANT PARTS OF THE CLEAN AIR ACT'S REFORMULATEDGASOLINE RULES IF PDVSA GETS AN EXEMPTION WE COULD EASILY SEE OTHER OIL COMPANIES TRYING TO PURSUE AN EXEMPTION SAID MICHAEL BRADLEY EXECUTIVE DIRECTOR OF THE NORTHEAST STATES FOR COORDINATED AIR USE MANAGEMENT AN EIGHTSTATE GROUP THAT COORDINATES REGIONAL EFFORTS TO CUT AIR POLLUTION MOST OF THE 70000 BARRELS A DAY OF GASOLINE THAT VENEZUELA CURRENTLY EXPORTS TO THE US LANDS IN EAST COAST PORTS MR BRADLEY ESTIMATES THAT UNDER PDVSA'S PLAN IT WOULD BE ALLOWED TO SELL GASOLINE WITH OLEFIN LEVELS THREE TIMES ABOVE WHAT'S ALLOWED IN THE CLEAN AIR ACT OLEFINS ARE CHEMICALS THAT LEAD TO HIGH AUTO EMISSIONS OF NITROGEN OXIDE A PRIME CULPRIT IN THE FORMATION OF OZONE MICHAEL SHERMAN A WASHINGTON ATTORNEY AT COLLIER SHANNON RILL & SCOTT WHO REPRESENTS PDVSA DISPUTES MR BRADLEY'S FIGURE BUT ACKNOWLEDGES THAT PDVSA'S GASOLINE WOULD HAVE A HIGHER OLEFIN CONTENT THAN THE FUEL MADE BY MANY NORTHEAST REFINERS HE SAID THAT BECAUSE PDVSA'S GASOLINE CONTAINS LOWER LEVELS OF OTHER POLLUTIONCAUSING COMPONENTS OVERALL IT WOULD BE AS CLEAN AS GASOLINE MADE BY MANY US REFINERS IT APPEARS THAT THE EPA'S DECISION MAY HAVE MORE TO DO WITH TRADE ISSUES THAN WITH ENVIRONMENTAL POLICY THE STATE DEPARTMENT AND TRADE REPRESENTATIVE WEIGHED IN ARGUING ALONG WITH VENEZUELA THAT ESTABLISHING DIFFERENT RULES FOR US REFINERS AND FOREIGN REFINERS WOULD VIOLATE THE GENERAL AGREEMENT ON TARIFFS AND TRADE AN INTERNATIONAL TRADE AGREEMENT UNDER THE CURRENT EPA PROPOSAL THE CONTENT OF GASOLINE MADE BY EACH US REFINER BEGINNING IN 1995 IS LARGELY DETERMINED BY THAT REFINER'S 1990 GASOLINE THE EPA PROPOSED THAT FOREIGN REFINERS' 1995 GASOLINE BE DETERMINED BY THE AVERAGE OF ALL US REFINERS IN 1990 THE AGENCY THOUGHT IT WOULD BE TOO DIFFICULT TO VERIFY RELIABILITY OF FOREIGN REFINERS OTHERWISE LARRY WILLIAMS DIRECTOR OF THE INTERNATIONAL PROGRAM FOR THE SIERRA CLUB OPPOSES GRANTING VENEZUELA'S REQUEST ALONG THE SAME LINES THAT THE ENVIRONMENTAL GROUP IS ATTACKING THE NORTH AMERICAN FREE TRADE AGREEMENT THE US IS OUT AHEAD OF MOST OF THE WORLD AND A LOT OF PEOPLE WOULD JUST AS SOON WE WEREN'T HE SAID AN EPA OFFICIAL SAID WE WANT TO TREAT THE VENEZUELANS FAIRLY WITHOUT IN ANY WAY GIVING THEM A COMPETITIVE ADVANTAGE IT IS THAT ISSUE THAT HAS PROMPTED US REFINERS LED MOST VOCALLY BY SUN CO OF RADNOR PA A LARGE NORTHEAST REFINER AND MARKETER TO BARRAGE THE EPA AND OTHER AGENCIES WITH ATTACKS ON PDVSA SUN CHAIRMAN ROBERT CAMPBELL WROTE THE EPA ADMINISTRATOR CAROL BROWNER THAT IF VENEZUELA'S REQUEST WERE GRANTED THE GASOLINE WOULD CONTINUE AT ITS CURRENT LOWQUALITY LEVEL MR CAMPBELL ADDS THAT US REFINERS HAVE MADE HUGE CAPITAL INVESTMENTS AND WILL HAVE TO MAKE MORE TO MEET ENVIRONMENTAL RULES THAT AREN'T FACED BY FOREIGN REFINERS A STUDY BY INDUSTRY CONSULTANTS WRIGHT KILLEN & CO HOUSTON FOUND THAT SINCE THE END OF 1991 25 US REFINERIES HAVE SHUT DOWN REPRESENTING 5 OF US FUEL PRODUCTION CAPACITY THE STUDY SAYS AN ADDITIONAL 5 OF TOTAL US REFINING CAPACITY REMAINS AT RISK OF SHUTTING DOWN BY 1995 WHEN THE FULL EFFECTS OF THE CLEAN AIR ACT WILL BEGIN TO BE FELT MR SHERMAN THE LAWYER FOR PDVSA DISMISSED THE ECONOMIC ARGUMENT ALTOGETHER IN THE OFFICE WE WERE JOKING THAT THE EPA STANDS FOR THE ENVIRONMENTAL PROTECTION AGENCY NOT THE ECONOMIC PROTECTION AGENCY HE SAID OTHER OIL COMPANIES INCLUDING MOBIL CORP AND THE SHELL OIL CO SUBSIDIARY OF ROYAL DUTCH/SHELL GROUP HAVE LOBBIED AGAINST PDVSA BUT MORE QUIETLY THAN SUN WHICH DOESN'T EXPLORE FOR OIL AND GAS ANY LONGER WHILE WE'RE ARGUING ON GASOLINE WE'RE ALSO TRYING TO DO EXPLORATION DEALS IN VENEZUELA AND WE DON'T WANT TO GET THEM UPSET SAID AN EXECUTIVE OF ONE OIL COMPANY PRESSING THE ISSUE TIMOTHY NOAH IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9311090125 931109 ECONOMY FIRST LADY REACHES OUT TO PROMOTERS OF OTHER PLANS FOR HEALTHCARE REFORM BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HILLARY RODHAM CLINTON REACHED OUT TO PROMOTERS OF SEVERAL ALTERNATIVE HEALTHCARE REFORM PROPOSALS INCLUDING ONE SPONSORED BY SENATE REPUBLICANS THAT SHARE WITH THE ADMINISTRATION THE GOAL OF PROVIDING ALL AMERICANS WITH MEDICAL COVERAGE WE'RE OBVIOUSLY PLEASED TO BE WORKING WITH PEOPLE WHO BELIEVE AS WE DO THAT THE DESTINATION IS UNIVERSAL COVERAGE THE FIRST LADY TOLD A SMALL GROUP OF REPORTERS SHE COMMENTED FAVORABLY ON A BILL WRITTEN BY REPUBLICAN SEN JOHN CHAFFEE OF RHODE ISLAND AS WELL AS LEGISLATION CALLING FOR A CANADIANSTYLE SINGLEPAYER SYSTEM UNDER WHICH THE GOVERNMENT WOULD DIRECTLY FINANCE HEALTH COVERAGE FOR EVERYONE MRS CLINTON WHO LED THE EFFORT TO CRAFT THE WHITE HOUSE'S HEALTH PLAN SAID A MUCH MORE EXTENSIVE ANALYSIS OF THE COSTS AND EFFECTS OF THE ALTERNATIVE PROPOSALS STILL MUST BE MADE BUT SHE SAID THERE ARE A LOT OF GOOD IDEAS THAT NEED TO BE EXPLORED ON BOTH SIDES WHILE PRAISING PROPOSALS THAT SEEK UNIVERSAL COVERAGE MRS CLINTON CRITICIZED ONES THAT DON'T INCLUDING PLANS DESIGNED BY REPUBLICAN SEN PHIL GRAMM OF TEXAS REPUBLICAN REP ROBERT MICHEL OF ILLINOIS REPS JIM COOPER D TENN AND FRED GRANDY R IOWA AND SENS JOHN BREAUX D LA AND DAVE DURENBERGER R MINN THEY DON'T EVEN HAVE AS A STATED GOAL THE ACHIEVEMENT OF UNIVERSAL COVERAGE MRS CLINTON DECLARED ARGUING THAT PROVIDING MEDICAL BENEFITS TO ALL IS CRITICAL BOTH FOR HUMAN REASONS AND FOR BRINGING HEALTH COSTS UNDER CONTROL SHE WAS PARTICULARLY TOUGH ON THE COOPERGRANDY PLAN WHICH MANY POLITICAL ANALYSTS HAVE PREDICTED COULD BECOME A MIDDLE GROUND FOR COMPROMISE THE LAWMAKERS' PURE MANAGED COMPETITION PROPOSAL WOULD TRY TO INCREASE THE NUMBER OF PEOPLE WHO RECEIVE MEDICAL COVERAGE BY INCREASING THE MUSCLE OF HEALTHCARE CONSUMERS AND STIMULATING MARKET FORCES IN A RECENT INTERVIEW REP COOPER SAID THAT HIS APPROACH WOULD LEAVE JUST A SMALL FRACTION OF THE POPULATION UNINSURED BUT MRS CLINTON SAID THERE IS NO INDICATION THE PLAN WOULD GET ANYWHERE CLOSE TO MAKING COVERAGE UNIVERSAL ALTHOUGH SHE COMPLIMENTED SEN CHAFFEE'S PROPOSAL MRS CLINTON DID RAISE SOME CAUTIONARY FLAGS ABOUT IT SHE SAID SHE FEARED THAT THE PLAN WHICH WOULD REQUIRE ALL INDIVIDUALS TO OBTAIN THEIR OWN HEALTH COVERAGE WOULD LEAD EMPLOYERS THAT CURRENTLY PROVIDE COVERAGE TO DROP THOSE BENEFITS SHE ALSO SAID IT MIGHT ENCOURAGE FIRMS TO HOLD DOWN WAGES SO SOME WORKERS COULD QUALIFY FOR GOVERNMENT SUBSIDIES RATHER THAN RELYING ON AN INDIVIDUAL MANDATE THE CLINTON PLAN WOULD REQUIRE ALL EMPLOYERS TO HELP PAY FOR THEIR WORKERS' HEALTH COVERAGE FOR ALL MRS CLINTON'S CONCILIATORY WORDS WORKING SIMULTANEOUSLY WITH BOTH THE CHAFFEE CAMP AND THE SINGLEPAYER CONTINGENT WON'T BE EASY THE CHAFFEE BILL WHICH IS COSPONSORED BY SENATE GOP LEADER ROBERT DOLE AND 21 OTHER SENATE REPUBLICANS IS APPEALING TO LAWMAKERS ON THE POLITICAL RIGHT A SINGLEPAYER SYSTEM AS CALLED FOR BY REP JIM MCDERMOTT D WASH AND SEN PAUL WELLSTONE D MINN IS ATTRACTIVE TO THOSE AT THE OTHER END OF THE POLITICAL SPECTRUM MRS CLINTON'S REMARKS WERE PART OF A CAMPAIGN BY THE WHITE HOUSE TO MAKE CLEAR THAT WHILE THE DETAILS OF ITS HEALTH PROPORE OPEN TO CHANGE THE PRINCIPLE OF UNIVERSAL COVERAGE WITH A COMPREHENSIVE SET OF BENEFITS IS IMMUTABLE SHE SAID MEETING THIS STANDARD IS A FUNDAMENTAL TEST AND THE BOTTOM LINE FOR ANY HEALTHCARE REFORM BILL THAT THE PRESIDENT WILL SIGN EVERYTHING IN THIS DEBATE IS NOT EQUAL SHE ADDED IN FACT THE FIRST LADY INDICATED THAT THE WHITE HOUSE WOULDN'T GIVE IN TO THE IDEA OF PHASING IN UNIVERSAL COVERAGE MORE SLOWLY THIS IDEA THAT YOU CAN POSTPONE UNIVERSAL COVERAGE IS TROUBLING TO ME SHE SAID UNTIL WE GET UNIVERSAL COVERAGE WE DON'T HAVE REAL BUDGETARY DISCIPLINE BECAUSE COSTS ARE SIMPLY SHIFTED FROM THE UNINSURED TO THE INSURED UNDER THE ADMINISTRATION'S PROPOSAL UNIVERSAL COVERAGE WOULD BE ACHIEVED BY JAN 1 1998 BEYOND THAT CENTRAL GOAL HOWEVER MRS CLINTON REITERATED THE ADMINISTRATION'S WILLINGNESS TO BEND IN RESPONSES TO QUESTIONS SHE SAID THE WHITE HOUSE COULD BE PERSUADED TO TAKE ANOTHER LOOK AT THE STRUCTURE OF THE REGIONAL INSURANCE PURCHASING POOLS ITS PLAN WOULD ESTABLISH THE AMOUNT EMPLOYERS WOULD BE REQUIRED TO CONTRIBUTE FOR THEIR WORKERS' COVERAGE AND THE LEVEL AT WHICH PRIVATESECTOR INSURANCE PREMIUMS WOULD BE CAPPED 9311090124 931109 POLITICS & POLICY EC OFFICIALS BLAME NAFTA US FOR TRADETALK DELAY BRUSSELS IN AN UNACCUSTOMED SHOW OF UNITY OVER TRADE ISSUES EUROPEAN COMMUNITY FOREIGN MINISTERS BLAMED SLOW PROGRESS IN WORLDTRADE TALKS ON THE US AND JAPAN AND PARTICULARLY ON US PREOCCUPATION WITH THE NORTH AMERICAN FREE TRADE AGREEMENT THE MINISTERS SEEKING TO GO ON THE OFFENSIVE IN NEGOTIATIONS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE SAID IN A STATEMENT THEY WERE CONCERNED IN THE FACE OF THE SLOW PROCESS OF NEGOTIATIONS AND OF CERTAIN OBSTACLES WHICH HAVE RECENTLY SURFACED PARTICULARLY WITH THE COMMUNITY'S MAJOR TRADING PARTNERS THE STATEMENT DIDN'T SPECIFICALLY MENTION NAFTA WHICH WILL BE VOTED ON BY THE US HOUSE OF REPRESENTATIVES ON NOV 17 BUT MINISTERS DIDN'T HESITATE TO POINT FINGERS THE EC TRADE COMMISSIONER SIR LEON BRITTAN SAID RECENT WEEKS HAD BEEN MARKED BY LACK OF MOVEMENT ESPECIALLY DUE TO THE AMERICAN PREOCCUPATION WITH THE NAFTA A US OFFICIAL COUNTERED THAT THE US HAD MADE SIGNIFICANT TARIFFREDUCTION OFFERS AT THE GATT TALKS IN GENEVA DESPITE THE NAFTA DEBATE AT HOME 9311090123 931109 A WORLD WITHOUT NAFTA SPARKS CONCERN AMONG ANALYSTS MULLING CONSEQUENCES BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON WHILE PRESIDENT CLINTON VIGOROUSLY CAMPAIGNS UPHILL IN SUPPORT OF THE NORTH AMERICAN FREE TRADE AGREEMENT GLOBAL MONEY MANAGERS AND ECONOMIC GURUS ARE BEGINNING TO ASSESS THE CONSEQUENCES IF CONGRESS REJECTS NAFTA THEY SEE A LONG LINE OF DOMINOES TEETERING OMINOUSLY THE IMMEDIATE ADVERSE EFFECT WOULD BE WEAKNESS IN MEXICO'S STOCK MARKET AND THE PESO SAYS ROBERT HORMATS VICECHAIRMAN OF GOLDMAN SACHS INTERNATIONAL IN NEW YORK THEN THERE WOULD BE A SECOND FOLLOWON EFFECT ON LATIN AMERICAN SECURITIES MARKETS IN GENERAL BECAUSE MANY LATIN COUNTRIES CHILE ARGENTINA MAYBE BOLIVIA AND COLOMBIA ARE LOOKING TOWARD EVENTUALLY JOINING NAFTA MANY OTHER THIRD WORLD MARKETS PARTICULARLY THOSE IN COUNTRIES THAT EXPORT WILL BE AFFECTED BY THE FEARS THAT A NAFTA DEFEAT WILL ENDANGER THE URUGUAY ROUND OF TRADE NEGOTIATIONS UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE MR HORMATS CONTINUES HE AND OTHERS WORRY THAT APPREHENSION CENTERING ON A GATT COLLAPSE COULD UPSET STOCK AND BOND MARKETS WORLDWIDE THAT'S BECAUSE IT WOULD LEAD TO MORE PROTECTIONISM SLOWER WORLD ECONOMIC GROWTH AND HIGHER GLOBAL INFLATION THE US HOUSE OF REPRESENTATIVES IS EXPECTED TO VOTE ON NAFTA WHICH WOULD EFFECTIVELY CREATE A FREETRADE ZONE AMONG THE US CANADA AND MEXICO ON NOV 17 PASSAGE IS UNCERTAIN DESPITE THE PRESIDENT'S SUPPORT AND THE DEMOCRATS' CONTROL OF CONGRESS BECAUSE MANY PEOPLE FEAR THAT KNOCKING DOWN TRADE BARRIERS WILL TRIGGER AN OUTFLOW OF JOBS TO MEXICO GLOBAL FINANCIAL MARKETS ARE ALREADY JITTERY LAST WEEK MAJOR STOCK MARKETS OUTSIDE THE US TUMBLED 25 TO 6 AND THE DOW JONES INDUSTRIAL AVERAGE FELL 1 MANY ANALYSTS ATTRIBUTED THE DECLINES TO RISING US BOND YIELDS WHICH WERE PUSHED UP BY APPREHENSION THAT FASTER US GROWTH WILL LEAD TO HIGHER INFLATION AND INTEREST RATES BUT JOHN HAGUE MANAGING DIRECTOR IN CHARGE OF NONUS INVESTMENTS AT PACIFIC INVESTMENT MANAGEMENT CO IN NEWPORT BEACH CALIF SAID OTHER FORCES ARE AT PLAY BEHIND THE SCENES ARE SOME CONCERNS ABOUT THE FAILURE OF NAFTA AND THE PROSPECTS FOR PROTECTIONISM AROUND THE WORLD HE SAYS OF COURSE NAFTA ISN'T DEAD YET ALTHOUGH MR HORMATS GIVES IT A 5050 CHANCE LEHRMAN BELL MUELLER CANNON INC AN ARLINGTON VA ECONOMIC CONSULTING FIRM CONTENDS THAT PRESIDENT CLINTON'S COMMITMENT TO NAFTA AND GROWING MOMENTUM IN FAVOR OF THE TREATY MAKE ITS PASSAGE LIKELY THE STAKES ARE HIGH FALLING INTEREST RATES IN THE US AND EUROPE LOW INFLATION IN MAJOR INDUSTRIAL COUNTRIES AND HUGE FLOWS OF AMERICAN MONEY INTO OVERSEAS SECURITIES HAVE SPARKED BIG RALLIES IN THE US AND EUROPEAN BOND MARKETS AND PUSHED STOCK MARKETS IN THE US EUROPE SOUTHEAST ASIA AND SOME LATIN COUNTRIES TO RECORD HIGHS A FAILURE TO RATIFY NAFTA WOULD BE A STEP IN A VERY BAD DIRECTION FOR FINANCIAL MARKETS SAYS NICK CARN CHIEF INVESTMENT OFFICER AT DRAYCOTT PARTNERS IN LONDON STOCK MARKETS ARE UP BECAUSE BOND YIELDS ARE DOWN BOND YIELDS ARE DOWN BECAUSE THE WORLD FREETRADING SYSTEM IS PRODUCING STRONG DISINFLATIONARY FORCES HE WARNS THAT IF COUNTRIES START TO RESTRICT TRADE AND CAPITAL FLOWS INFLATION WILL BE BACK VERY QUICKLY A NAFTA DEFEAT COULD SEND MEXICAN STOCKS PLUMMETING 20 AND ALSO HURT CANADIAN SHARES ALBEIT LESS SEVERELY PREDICTS DAVID D HALE CHIEF ECONOMIST AT KEMPER FINANCIAL COS IN CHICAGO HE ADDS THAT BOTH COUNTRIES' CURRENCIES WOULD FALL AND THAT A STEEP DECLINE IN MEXICAN SHARES PROBABLY WOULD PROMPT SELLOFFS IN OTHER LATIN AMERICAN MARKETS EVEN MORE IMPORTANT MR HALE CONTENDS THAT A NAFTA DEFEAT WOULD BE A MAJOR BLOW TO THE PRESTIGE OF THE US AND PRESIDENT CLINTON PERSONALLY THEN THE SENTIMENT AGAINST FREE TRADE WOULD QUICKLY SPREAD TO OTHER COUNTRIES ARGUES MR HORMATS OF GOLDMAN SACHS THE DANGER IS THAT OTHER COUNTRIES WILL FIGURE IF THE ADMINISTRATION CAN'T GET NAFTA THROUGH THE CONGRESS IT WILL BE DIFFICULT TO GET THE URUGUAY ROUND THROUGH THE CONGRESS HE SAYS THE RESULT IS THEY WON'T MAKE DOMESTICALLY UNPOPULAR CONCESSIONS IF THEY THINK IT WILL ULTIMATELY BE IN VAIN WHILE MONEY MANAGERS HAVE EXAMINED THE IMMEDIATE IMPACT OF A NAFTA REJECTION ON LATIN AMERICAN AND CANADIAN MARKETS MESSRS HALE AND HORMATS DOUBT THAT MANY HAVE THOUGHT THROUGH THE CONTAGION EFFECT ON THE GATT TALKS DAVID ROCHE GLOBAL STRATEGIST AT MORGAN STANLEY & CO IN LONDON SAYS THAT THE COST OF A URUGUAY ROUND FAILURE ISN'T REFLECTED IN CURRENT GLOBAL STOCK AND BOND PRICES ALTHOUGH NAFTA DOESN'T DIRECTLY CONCERN SOUTHEAST ASIAN COUNTRIES ITS FAILURE ISN'T GOING TO BE GOOD FOR THEIR STOCK MARKETS SAYS MARC FABER MANAGING DIRECTOR OF MARC FABERNG HONG MONEY MANAGEMENT AND ADVISORY FIRM NAFTA'S DEFEAT HE SAYS WOULD BE PSYCHOLOGICALLY NEGATIVE FOR MOST OF THE ASIAN ECONOMIES BECAUSE THEY RELY HEAVILY ON EXPORTS TO THE US EUROPE AND JAPAN IN ADDITION KEMPER'S MR HALE SAYS STOCK MARKETS OF THE INDUSTRIAL COUNTRIES WOULD ALSO SUFFER FROM CONCERNS ABOUT TRADE PROTECTION PUSHING UP INFLATION AND ERODING THE POTENTIAL INCOME GAINS WHICH MIGHT HAVE RESULTED FROM LIBERALIZED AGRICULTURAL POLICIES IN EUROPE AND JAPAN JOHN LIPSKY CHIEF ECONOMIST AT SALOMON BROTHERS INC IN NEW YORK PREDICTS THAT IF NAFTA IS DEFEATED FAILURE OF THE URUGUAY ROUND WOULD BE ALMOST CERTAIN THE RESULTING PROTECTIONISM HE SAYS WOULD REDUCE THE PROSPECTS FOR EXPORTLED GROWTH TEMPT GOVERNMENTS TO PURSUE FREESPENDING FISCAL AND MONETARY POLICIES AND POSSIBLY BACK AWAY FROM THE COMMITMENT TO THE FREE FLOW OF CAPITAL ACROSS NATIONAL BORDERS ALL THIS PLUS THE RESULTING POTENTIAL FOR HIGHER INFLATION COULD SPOOK GLOBAL BOND MARKETS WHETHER THE FINANCIALMARKET DOMINOES FALL SLOWLY OR QUICKLY DEPENDS ON HOW US INVESTORS REACT MONEY MANAGERS SAY MANY ANALYSTS CREDIT US INVESTORS WITH BEING THE MAJOR FORCE BEHIND THIS YEAR'S RALLIES ESPECIALLY THOSE IN EMERGING STOCK MARKETS MR FABER NOTES THAT AMERICAN INVESTORS LATELY HAVE BEEN POURING ROUGHLY 6 BILLION A MONTH INTO INTERNATIONAL STOCK MARKETS THROUGH MUTUAL FUNDS WE ARE IN A FINANCIAL MANIA MR FABER SAYS JUST AS THE MONEY IS GOING INTO MARKETS BLINDLY WHEN MARKETS GO DOWN INVESTORS WILL SELL BLINDLY SOME INVESTORS ARE READY FOR THAT POSSIBILITY JOHN TROTT CHIEF INTERNATIONAL INVESTMENT OFFICER FOR BESSEMER TRUST CO IN LONDON SAYS I THINK THE MEXICAN ECONOMY WILL SURVIVE A NAFTA DEFEAT AND IF THERE IS A LARGE SELLOFF WE WILL CERTAINLY BE BUYERS OF MEXICAN STOCKS JOHN HICKLING WHO MANAGES FIDELITY INVESTMENTS' OVERSEAS FUND SAYS HE IS MORE WORRIED BY THE IMPACT OF A NAFTA NOVOTE ON WORLD TRADE GENERALLY THAN ON LATIN AMERICA IN PARTICULAR WE'RE ALL EXPOSED TO GATT MR HICKLING SAYS IT'S TOUGH TO ESCAPE FAILURE OF THE URUGUAY ROUND HE BELIEVES WOULD BE WORSE FOR STOCKS THAN BONDS THAT'S BECAUSE HE SEES IT SKEWING THE PRICES OF GOODS AND SERVICES MORE THAN CONTRIBUTING TO WORLD INFLATION IT WOULD DISTORT RESOURCES FROM THEIR MOST EFFICIENT APPLICATION WHICH IS BAD FOR EQUITIES CORPORATE PROFITS INTERNATIONAL TRADE AND ECONOMIC GROWTH SAYS MR HICKLING IF THE GLOBAL ECONOMY GRINDS TO A HALT I THINK LONGDATED GOVERNMENT BONDS WOULD BE THE PLACE TO BE POINTING OUT THAT GERMAN FRENCH AND JAPANESE ECONOMIES DEPEND MORE ON EXPORTS THAN THE US DOES HE SAYS EVERYONE LOSES IN A TRADE WAR THE US LESS THAN OTHERS 9311090122 931109 UNION MOVES UP DEADLINE FOR STRIKE AT AMERICAN AIR FORT WORTH TEXAS THE UNION REPRESENTING FLIGHT ATTENDANTS AT AMERICAN AIRLINES SAID IT PLANS TO STRIKE THE AMR CORP UNIT ON NOV 18 FOUR DAYS EARLIER THAN PREVIOUSLY PLANNED THAT PUTS A POSSIBLE WALKOUT BY THE ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS A FULL WEEK BEFORE THANKSGIVING ONE OF THE BUSIHE YEAR THE UNION WHICH REPRESENTS 21000 MEMBERS SAID IT ADVANCED THE EARLIER NOV 22 DEADLINE AFTER LEARNING THAT AMERICAN BEGAN A SPECIAL EIGHTDAY SAFETYTRAINING COURSE LAST FRIDAY FOR WORKERS WHO MIGHT FILL IN FOR STRIKING FLIGHT ATTENDANTS WE WILL NOT PLAY A WAITING GAME THAT ALLOWS THE COMPANY TIME TO TRAIN QUICKIE FLIGHT ATTENDANTS TO FULFILL ITS THREAT TO PERMANENTLY REPLACE US WHEN WE STRIKE SAID APFA PRESIDENT DENISE HEDGES THE FACT THAT AMERICAN HAS BEGUN TEACHING SAFETY TO MANAGEMENT REPLACEMENTS IS A SIGN THAT THE COMPANY IS TAKING THE STRIKE THREAT SERIOUSLY UNTIL LAST WEEK THE COMPANY WAS TRAINING WORKERS TO SERVE DRINKS AND MEALS A SIGN THAT IT EXPECTED MANY FLIGHT ATTENDANTS NOT TO STRIKE A SPOKESMAN FOR THE FEDERAL AVIATION ADMINISTRATION SAID THE AGENCY ON OCT 25 GRANTED AMERICAN PERMISSION TO TEACH SEPARATE SPECIAL 75ANDAHALFHOUR SAFETY COURSES FOR EACH OF THE AIRLINE'S DOMESTIC AIRCRAFT TYPES AMERICAN'S REGULAR SIXWEEKLONG FLIGHT ATTENDANT COURSE TYPICALLY INVOLVES SAFETY PROCEDURES ON SEVERAL PLANES TYPES THE UNION SAID IT ALSO PROPOSED A CONTRACT THAT IT SAID GAVE AMERICAN MUCH OF WHAT THE COMPANY IS ASKING IN TERMS OF SCHEDULING AND STAFFING BUT THE AIRLINE SAID THE PROPOSAL WOULD INCREASE FLIGHTATTENDANT PAY BY 57 ON AVERAGE 9311090121 931109 INTERNATIONAL AKZO AGREES TO ACQUIRE SWEDEN'S NOBEL INDUSTRIER A WALL STREET JOURNAL NEWS ROUNDUP STOCKHOLM AKZO NV OF THE NETHERLANDS AGREED TO ACQUIRE SWEDEN'S STRUGGLING NOBEL INDUSTRIER AB ASSUMING THE BID CLEARS REGULATORY AND SHAREHOLDER HURDLES THE MERGER WOULD CREATE ONE OF EUROPE'S HALFDOZEN BIGGEST CHEMICALS CONCERNS AND A WORLD POWERHOUSE IN THE PAINT BUSINESS A STRATEGIC MATCH HAD BEEN EXPECTED SINCE THE TWO ANNOUNCED THEY WERE DISCUSSING A POSSIBLE MERGER LAST WEEK THE DUTCH CONCERN AGREED TO PAY 167 BILLION SWEDISH KRONOR 206 BILLION IN CASH AND STOCK FOR NOBEL'S CORE CHEMICALS OPERATIONS AND ASSUME AN ESTIMATED 8 BILLION KRONOR IN DEBT ANALYSTS ESTIMATED THAT PURCHASE PRICE AT ROUGHLY 14 TIMES NOBEL'S PROJECTED 1993 SALES AKZO UNVEILED A 13 BILLION DUTCH GUILDER 6841 MILLION EQUITY OFFERING TO COVER EXPECTED CASH PAYMENTS UNDER THE OFFER AKZO STOCK TUMBLED 6 TO 1851 GUILDERS FROM 1972 GUILDERS IN AMSTERDAM TRADING IN CONTRAST INVESTORS IN STOCKHOLM DROVE THE PRICE OF NOBEL'S BENCHMARK CLASS B SHARES UP 23 IN HEAVY TRADING AKZO'S BID OF 296 KRONOR A SHARE WAS 35 ABOVE NOBEL'S MOST RECENT CLOSING PRICE SWEDEN THROUGH ITS 736 NOBEL VOTING STAKE COULD REAP A GIANT WINDFALL FROM AKZO'S TAKEOVER PLANS 9311090120 931109 LETTERS TO THE EDITOR GET SMART YOUR OCT 19 TECHNOLOGY ARTICLE ROOTS OF FRAGILE X' RETARDATION STUDIED LET YOUR READERS NOT ASSUME THAT A HIGH INTELLIGENCE AND MENTAL RETARDATION EXIST ON A CONTINUUM ENTIRELY EXPLAINED BY THE BIOCHEMISTRY INVOLVED IN FRAGILE X SYNDROME FOR EXAMPLE A QUANTITATIVE DEFECT IN THYROID HORMONE PRODUCES CRETINISM BUT BY THE SAME TOKEN A HIGH CONCENTRATION OF THYROID HORMONE DOES NOT PRODUCE AN EINSTEIN I HAVE ALWAYS SAID THAT WHEN A CHILD IS BORN WITH NORMAL EQUIPMENT I CAN THEN RAISE ANY CHILD TO HAVE AN IQ OF 130 OR GREATER THAT IS HIGH INTELLIGENCE IS IMPRINTABLE AND IS NOT A CHEMICAL/GENETIC PHENOMENON 9311090119 931109 COMMODITIES GRAIN FUTURES FALL AFTER A PRIVATE FORECASTER SEES LARGER SOYBEAN CROP THAN MARKET EXPECTED BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO GRAIN FUTURES PRICES FELL AFTER A PRIVATE GRAINFORECASTING COMPANY RELEASED AN ESTIMATE OF THE NATION'S SOYBEAN CROP THAT WAS HIGHER THAN THE MARKET EXPECTED AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR NOVEMBER DELIVERY PLUNGED 10 1/2 CENTS TO 631 A BUSHEL THE DECEMBER CORN FUTURES CONTRACT WAS DOWN THREE CENTS TO 260 A BUSHEL AND THE DECEMBER WHEAT CONTRACT FELL 3 3/4 CENTS TO 333 A BUSHEL AFTER TRADING ON FRIDAY LESLIE ANALYTICAL ARCHER DANIELS MIDLAND A FIRM THAT SURVEYS 2500 GRAIN ELEVATORS THROUGHOUT THE CORN BELT AND COMPILES ESTIMATES OF GRAIN PRODUCTION PROJECTED THE SOYBEAN CROP AT ABOUT 1885 BILLION BUSHELS THIS SOYBEANCROP ESTIMATE WAS SUBSTANTIALLY HIGHER THAN THE 1825 BILLION BUSHELS MOST ANALYSTS WERE EXPECTING AND IT SPAWNED SELLING OF FUTURES CONTRACTS NOT ONLY IN THE CBOT'S SOYBEAN PIT BUT IN CORN AND WHEAT FUTURES PITS AS WELL IT CAUSED A LOT OF LIQUIDATION AND PROFITTAKING SAID DANIEL BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTOR MONEY WERE AMONG THE MOST AGGRESSIVE SELLERS ANALYSTS SAID THE SIZES OF THIS YEAR'S SOYBEAN AND CORN CROPS ARE SHROUDED IN MYSTERY IN PART BECAUSE OF THE FLOODING THAT DAMAGED CROPS THIS SUMMER IN THE WESTERN AND NORTHERN CORN BELT BECAUSE OF THE UNCERTAINTY TRADERS ARE FIXATED ON CROPPRODUCTION REPORTS BOTH PRIVATE AND PUBLIC AFTER TRADING TODAY THE US AGRICULTURE DEPARTMENT WILL RELEASE ITS LATEST MONTHLY CROPPRODUCTION REPORT IN MOST OF THE CBOT'S GRAIN FUTURES PITS LONG POSITIONS OR WAGERS THAT PRICES WILL RISE CURRENTLY OUTNUMBER SHORT POSITIONS WHICH ARE THE OPPOSITE ANALYSTS SAID YOU TEND TO GET A LOT OF POSITION SQUARING BEFORE ANY USDA REPORT SAID FRANK STEARNS GRAIN ANALYST FOR REFCO INC WITH ALL THE FUNDS LONG THE POSITION SQUARING YESTERDAY WAS MOSTLY SELLING WHICH TENDS TO DRIVE PRICES LOWER IN THE USDA'S REPORT TODAY MOST ANALYSTS EXPECT THE DEPARTMENT TO PEG THE SOYBEAN CROP AT ABOUT 186 BILLION BUSHELS AND THE CORN CROP AT 672 BILLION BUSHELS A HIGHER NUMBER IN EITHER CORN OR SOYBEANS IS LIKELY TO PUSH GRAIN FUTURES PRICES LOWER AS SUGGESTED BY YESTERDAY'S STRONG REACTION TO THE UNEXPECTEDLY HIGH LESLIE ANALYTICAL NUMBER MANY ANALYSS EXPECT TODAY'S SESSION TO BE QUIET BECAUSE TRADERS ARE RELUCTANT TO OPEN NEW POSITIONS IMMEDIATELY BEFORE MAJOR GOVERNMENT REPORTS ARE RELEASED IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES PLUNGED AGAIN ALTHOUGH OIL ANALYSTS FOUND IT DIFFICULT TO EXPLAIN WHY OTHER THAN CITING TECHNICAL FACTORS BUT PERCEPTIONS OF OVERSUPPLY CONTINUED TO WEIGH HEAVILY ON THE MARKET CONTRIBUTING TO THE PRICING VOLATILITY WHILE THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES APPEARS TO HAVE ADHERED CLOSELY TO ITS PRODUCTION CEILING LAST MONTH THERE ARE INDICATIONS OF AN INCREASED FLOW OF NONOPEC OIL PARTICULARLY FROM THE NORTH SEA EVEN OPEC'S ADMIRABLE PRODUCTION DISCIPLINE IN OCTOBER MAY NOT BE ENOUGH TO BRING SUPPLY BACK INTO BALANCE WITH RISING WINTER DEMAND ANYTIME SOON REPORTED THE LONDONBASED ENERGY COMPASS WHATEVER THE REASON CRUDE OIL FOR DECEMBER DELIVERY FELL 38 CENTS ON THE NEW YORK MERCANTILE EXCHANGE TO SETTLE AT 1671 A BARREL COFFEE COFFEE FUTURES PRICES FELL ON CONTINUING SKEPTICISM ABOUT THE QUANTITY OF COFFEE PURCHASED BY THE GOVERNMENT OF BRAZIL UNDER AN EXPORTLIMITING AGREEMENT AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE COFFEE FOR DECEMBER DELIVERY WAS DOWN 160 CENTS TO 7545 CENTS A POUND BRAZIL NEEDS TO PURCHASE NEARLY 200000 BAGS OF ITS PRODUCERS' COFFEE TO CONFORM WITH AN EXPORTLIMITING AGREEMENT AMONG LATIN AMERICAN AND AFRICAN COFFEEPRODUCING NATIONS THE PURPOSE OF THE AGREEMENT IS TO WITHHOLD COFFEE FROM WORLD MARKETS WHEN PRICES ARE BELOW CERTAIN PREESTABLISHED LEVELS YET BRAZIL BOUGHT ONLY 11750 BAGS OF COFFEE LAST WEEK AND TRADERS REMAIN UNCONVINCED THAT THE COUNTRY WILL MAKE GOOD ON ITS EXPORTLIMITING OBLIGATIONS DURING TWO SUPPLEMENTAL AUCTIONS THIS WEEK THE MARKET IS FIXATED ON THIS SITUATION RIGHT NOW SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH 9311090118 931109 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION MHI GROUP INC AN OFFERING OF 22 MILLION COMMON SHARES VIA LAIDLAW EQUITIES INC AND ABD SECURITIES CORP SCHULER HOMES INC AN OFFERING OF 27 MILLION OF ITS COMMON SHARES VIA MONTGOMERY SECURITIES STONE CONTAINER CORP AN AMENDED OFFERING OF 225 MILLION IN SENIOR SECURED NOTES INSTEAD OF THE ORIGINAL 200 MILLION OF SENIOR SECURED AND 125 MILLION OF SENIOR UNSECURED NOTES WISCONSIN BELL INC A UNIT OF AMERITECH CORP A SHELF OFFERING OF UP TO 200 MILLION OF DEBT SECURITIES 9311090117 931109 EXOFFICER AT PHARMOR IS SENTENCED TO PRISON FOR ROLE IN FRAUD CASE CLEVELAND PATRICK B FINN FORMER CHIEF FINANCIAL OFFICER OF PHARMOR INC WAS SENTENCED YESTERDAY IN US DISTRICT COURT TO SERVE 33 MONTHS IN PRISON FOR HIS ROLE IN THE FRAUD AND EMBEZZLEMENT OF THE DEEP DISCOUNT DRUG CHAIN MR FINN 35 PLEADED GUILTY LAST MARCH TO 14 FRAUD MONEYLAUNDERING AND TAXRELATED CHARGES THE SENTENCE INCLUDES A FIVEYEAR SUPERVISED RELEASE AFTER HIS PRISON TERM AS WELL AS A FINE OF 500 FOR EACH OF THE 14 COUNTS FOR A TOTAL OF 7000 SAID JOHN D SAMMON ASSISTANT US ATTORNEY IN CLEVELAND MR FINN WAS FIRED IN AUGUST 1992 AFTER PHARMOR DISCLOSED IT WAS THE VICTIM OF A 499 MILLION FRAUD AND EMBEZZLEMENT SCHEME BY SEVERAL EXECUTIVES CLOSELY HELD PHARMOR WHICH IS BASED IN YOUNGSTOWN OHIO SUBSEQUENTLY FILED FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE MR FINN IS EXPECTED TO TESTIFY AT THE FEB 14 TRIAL OF MICHAEL I MONUS PHARMOR'S COFOUNDER AND FORMER PRESIDENT WHO ALSO WAS FIRED LAST YEAR ACCORDING TO MR SAMMON MR MONUS PLEADED INNOCENT IN FEBRUARY TO 129 FRAUD TAX AND MONEYLAUNDERING COUNTS MR SAMMON SAID HE EXPECTS MR FINN TO BEGIN SERVING HIS PRISON TERM IN A FEW WEEKS 9311090116 931109 INTERNATIONAL BENTSEN TELLS JAPAN TO CUT TAXES TO SPUR ECONOMY WASHINGTON THE US TREASURY IS SEIZING EVERY PUBLIC OPPORTUNITY TO URGE JAPAN TO CUT TAXES TO BOOST ITS SAGGING ECONOMY AND HELP REVIVE GLOBAL ECONOMIC GROWTH IN AN UNUSUAL TWOSENTENCE STATEMENT AND IN LATER COMMENTS TO REPORTERS AT THE WHITE HOUSE AND IN A TELEVISION INTERVIEW TREASURY SECRETARY LLOYD BENTSEN DECLARED THAT JAPAN SHOULD CUT INCOME TAXES TO STIMULATE CONSUMER SPENDING AND DEMAND FOR IMPORTS DEPUTY TREASURY SECRETARY ROGER ALTMAN DID THE SAME IN TESTIMONY ON CAPITOL HILL ANOTHER TREASURY OFFICIAL REINFORCED THE THEME IN A BRIEF SESSION WITH WIRESERVICE REPORTERS I AM CONCERNED THAT JAPANESE GROWTH APPEARS TO BE SLOWING AND JAPANESE DEMAND FOR FOREIGN PRODUCTS IS INCREASING LESS RAPIDLY THAN HAD BEEN HOPED MR BENTSEN SAID HE CALLED ON THE JAPANESE TO PROVIDE SUBSTANTIAL STIMULUS TO THEIR CONSUMER SPENDING AT THIS CRUCIAL JUNCTURE THE COMMENTS CAME AS PRIME MINISTER MORIHIRO HOSOKAWA'S GOVERNMENT IS CONSIDERING AN INCOME TAX CUT TO BE FOLLOWED BY HIGHER CONSUMPTION TAXES JAPAN HAS THE WHEREWITHAL TO USE ITS BUDGET TO STIMULATE THE ECONOMY SO THE US WANTS A TAX CUT NOW AND A DELAY IN THE CONSUMPTIONTAX INCREASE MR HOSOKAWA IS TO MEET WITH PRESIDENT CLINTON NEXT WEEK WHEN THE TWO MEN ARE IN SEATTLE FOR A SUMMIT OF LEADERS OF ASIAN AND PACIFIC NATIONS 9311090115 931109 UAL CRITICIZES UNIONS' LATEST PROPOSAL TO OFFER CONCESSIONS FOR MAJORITY STAKE BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UAL CORP FOUND FAULT WITH A UNION COALITION'S LATEST PROPOSAL TO ACQUIRE A MAJORITY STAKE IN THE AIRLINE HOLDING COMPANY INDICATING THAT THE TWO SIDES STILL HAVEN'T RESOLVED SEVERAL IMPORTANT ISSUES THE 40PAGE UNION PLAN DELIVERED IN DRAFT FORM TO UAL ON SATURDAY IS THE MOST COMPREHENSIVE PROPOSAL YET FROM THE GROUP COMPRISING UNITED AIRLINES' PILOTS AND MACHINISTS UNIONS FOR SEVERAL MONTHS THE COALITION HAS BEEN NEGOTIATING A CONCESSIONFOREQUITY TRANSACTION WHICH WOULD INCLUDE THE FORMATION OF A SEPARATE LOWERCOST AIRLINE SERVING HOTLY COMPETITIVE SHORTFLIGHT MARKETS BUT DESPITE THE APPARENT PROGRESS UAL INSIDERS SAY COMPANY OFFICIALS REVIEWING THE LATEST PROPOSAL TOOK ISSUE WITH SEVERAL MATTERS CONTAINED IN IT AND SOME ITEMS MISSING FROM IT INSIDE UAL THERE IS GROWING SKEPTICISM AMONG SENIOR MANAGEMENT THAT THE UNION COALITION LED BY THE PILOTS IS COMMITTED ENOUGH TO STOMACH THE DEEP WAGE AND WORKRULE CONCESSIONS NEEDED TO ACQUIRE THE MAJORITY STAKE THAT THE UNIONS ARE SEEKING SINCE A BITTER STRIKE IN 1985 UNITED'S PILOTS UNION HAS TWICE TRIED AND FAILED TO ACQUIRE CONTROL OF THE AIRLINE SOME UNITED MANAGERS ARE BEGINNING TO BELIEVE THAT A MINORITY STAKE IS A MORE ATTAINABLE GOAL FOR THE UNION COALITION BUT THEY FEAR THE UNIONS WON'T ACCEPT THAT ONE UNION OFFICIAL INVOLVED IN THE TALKS SAID THE COALITION REMAINS FOCUSED ON A MAJORITY PURCHASE CONVINCED THAT ITS LATEST PROPOSAL REFLECTS THE GROUP'S WILLINGNESS TO MOVE FORWARD IN AN INTERVIEW YESTERDAY STEVEN M WOLF THE CARRIER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WOULDN'T COMMENT ON THE LATEST BUYOUT PROPOSAL BUT HE INDICATED THAT THE BOARD IS WILLING TO CONSIDER ANY UNION STOCKPURCHASE TRANSACTION MAJORITY OR OTHERWISE WE WILL SELL 5 OR 100 IF IT WORKS FOR OUR SHAREHOLDERS HE SAID THE ATTRACTIVENESS OF THIS PROCESS IS TO GET A LOWER COST STRUCTURE IN A HARMONIOUS FASHION BUT WITH SATURDAY'S EFFECTIVE DEADLINE ON THE TRANSACTION APPROACHING UAL OFFICIALS WERE PARTICULARLY CONFOUNDED BY THE GROUP'S REFUSAL TO INCLUDE A FINAL PRICE IN THE DOCUMENT SPECIFYING HOW MUCH IT WILL PAY IN ADDITION TO CONCESSIONS THE PROPOSAL DID HOWEVER SPELL OUT THAT THE UNIONS WOULD OFFER UNITED SOME 35 BILLION IN WAGE BENEFIT AND WORKRULE CONCESSIONS ABOUT THE SAME AS IN A PREVIOUS OFFER ONE INDIVIDUAL INVOLVED IN THE UNION SIDE OF THE TALKS SAID THAT UAL SHOULD HAVE REALIZED THAT THE LATEST PROPOSAL WHICH WAS CHARACTERIZED AS A DRAFT IS A WORK IN PROGRESS AND THAT IT WASN'T ADVANTAGEOUS FOR THE COALITION TO LAY ALL ITS CARDS ON THE TABLE YET COMPANY INSIDERS SAID UAL ALSO WANTS SOME LANGUAGE ASSURING THAT THE LOWCOST CARRIER CODENAMED U2 WOULD BE A PERMANENT FIXTURE THAT COULDN'T BE DISMANTLED SEVERAL YEARS AFTER THE BUYOUT UAL ALSO WANTS THE FLIGHT ATTENDANTS UNION WHICH DROPPED OUT OF THE NEGOTIATIONS IN A DISPUTE WITH THE COMPANY IN SEPTEMBER TO REJOIN THE EFFORT AND THE COMPANY DISAGREES WITH A SUGGESTION IN THE PROPOSAL THAT THERE BE RESTRICTIONS ON CODESHARING ARRANGEMENTS WHICH ARE INCREASINGLY COMMON MARKETING AGREEMENTS AMONG AIRLINES THE AGREEMENTS ALLOW AIRLINES TO USE EACH OTHER'S FLIGHT CODES GIVING THEM A LEG UP ON RIVALS IN COMPUTER RESERVATION SYSTEMS UNITED'S PILOTS HAVE FROWNED ON SUCH ARRANGEMENTS MR WOLF NEVERTHELESS REMAINED OPTIMISTIC THAT AN AGREEMENT COULD BE STRUCK DESPITE NEARLY EIGHT YEARS OF FAIRLY CONTENTIOUS LABOR RELATIONS AT UAL HE CALLED THE RECENT UNION NEGOTIATIONS THE MOST PROFESSIONAL MOST RATIONAL MOST BUSINESSLIKE MEETINGS WE HAVE EVER HAD MEANWHILE UNITED OFFICIALS MET YESTERDAY WITH REPRESENTATIVES OF THE MACHINISTS UNION TO DISCUSS UNITED'S SEPARATE PROPOSAL TO THAT UNION LAST WEEK UNITED SAID IT WOULD BACK OUT OF THE SALE OF ITS CATERING BUSINESS WHICH THE MACHINISTS HAD VIGOROUSLY OPPOSED IF THE UNION QUICKLY ACCEPTED CONTRACT REVISIONS THAT WOULD LOWER THE COST OF OPERATING ITS FLIGHT KITCHENS 9311090114 931109 CORPORATE FOCUS FIELDCREST CANNON'S TAKEOVER WORRIES MAY NOT BE OVER WALL STREET IS BETTING THAT ANOTHER BID MAY BE MADE FOR TOWEL MAKER BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL FOR 10 MONTHS INVESTORS IN FIELDCREST CANNON INC HAVE FOCUSED ON THE TWISTS AND TURNS OF A TAKEOVER BATTLE FOR THE NATION'S BIGGEST MAKER OF TOWELS NOW AS FIELDCREST PREPARES TO COMPLETE THE PURCHASE OF ITS LARGEST SHAREHOLDER THE COMPANY IS EAGER TO ADDRESS MOUNTING PRESSURE ON PRICES MASSIVE CAPITALSPENDING NEEDS AND A SIZABLE DEBT LOAD THOSE PROBLEMS HOWEVER MAY HAVE TO TAKE A BACK SEAT TO YET ANOTHER TWIST A NEW TAKEOVER FIGHT WALL STREET IS BETTING THE BATTLE FOR FIELDCREST ISN'T OVER INVESTORS HAVE PUSHED UP THE COMPANY'S STOCK TO 2650 FROM AN AUGUST LOW OF 1950 PRIMARILY IN ANTICIPATION OF A RENEWED TAKEOVER ATTEMPT BY SPRINGS INDUSTRIES INC SPRINGS A LINEN MANUFACTURER BID FOR BOTH FIELDCREST AND ITS CONTROLLING SHAREHOLDER AMOSKEAG CO EARLIER THIS YEAR THE EFFORT FAILED IN THE FACE OF FIELDCREST'S RESOLVE TO REMAIN INDEPENDENT BUT IF SPRINGS COMES COURTING AGAIN FIELDCREST MAY NOT HAVE ENOUGH SHAREHOLDER BACKING TO SAY NO AGAIN AT STAKE IN THE FIGHT FOR FIELDCREST IS AN ARRAY OF BRAND NAMES INCLUDING ROYAL VELVET CANNON ROYAL FAMILY AND ST MARYS THAT HAVE LED THE TOWEL MARKET FOR YEARS IF SPRINGS COULD ADD THEM TO ITS OWN ROSTER OF SHEET BRANDS IT WOULD DOMINATE THE 15 BILLION MARKET FOR TEXTILE HOME FURNISHINGS SHEETS AND TOWELS ARE THE BREAD AND BUTTER OF THE BUSINESS SPRINGS WHOSE 1992 SALES TOTALED NEARLY 2 BILLION WON'T DISCUSS ITS PLANS A STANDSTILL AGREEMENT SIGNED BY THE FORT MILL SC COMPANY FORBIDS IT FROM MAKING ANOTHER OFFER UNTIL AMOSKEAG IS ACQUIRED ACCORDING TO DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION THE TENDER OFFER FOR AMOSKEAG SHARES IS EXPECTED TO BE COMPLETED NOV 24 BUT SPRINGS'S AGGRESSIVE ACTIONS EARLIER THIS YEAR HAVE LEFT MANY INVESTORS AND OBSERVERS CONVINCED THAT THE COMPANY IS STILL IN THE HUNT IT'S WIDELY ASSUMED THAT SPRINGS OR SOMEONE ELSE WILL COME BACK WITH A BID SAYS DON HOGSETT BUSINESS EDITOR OF HOME TEXTILES TODAY AN INDUSTRY PUBLICATION EARLIER THIS YEAR BIBB CO A MACON GA TEXTILE CONCERN AND APOLLO ADVISORS AN INVESTMENT FIRM IN PURCHASE NY EACH BID FOR CONTROL OF FIELDCREST APOLLO HAS SINCE LOST INTEREST A COMPANY OFFICIAL SAID BIBB STILL WOULD LIKE TO MERGE WITH FIELDCREST ALTHOUGH IT HAS HELD NO FURTHER DISCUSSIONS SAID THOMAS C FOLEY BIBB'S CHIEF EXECUTIVE THE DRAMA AT FIELDCREST BASED IN EDEN NC IS PLAYING OUT AGAINST A BLEAK INDUSTRY BACKDROP MASS MERCHANDISERS SUCH AS WALMART STORES INC AND KMART CORP ARE SQUEEZING PROFIT MARGINS FOR TOWEL AND SHEET MAKERS PRICES OF SELECTED SHEETS AND TOWELS HAVE HIT RECORD LOWS WITH RETAILERS OFFERING FREQUENT BARGAINS IN THE FIRST NINE MONTHS OF 1993 FIELDCREST HAD A NET LOSS OF 516 MILLION INCLUDING ACCOUNTING CHANGES AND ONETIME CHARGES COMPARED WITH A PROFIT OF 74 MILLION A YEAR EARLIER THE MAN ATTEMPTING TO NAVIGATE FIELDCREST THROUGH THESE DIFFICULT TIMES IS JAMES M FITZGIBBONS ITS CHAIRMAN AND CHIEF EXECUTIVE THE 59YEAROLD TRANSPLANTED NEW ENGLANDER HE HAS HOMES IN BOTH DAVIDSON NC AND BOSTON WHERE HE SPENDS HIS WEEKENDS HAS EARNED PRAISE FROM THE INVESTMENT COMMUNITY FOR CUTTING COSTS AT FIELDCREST AND SHEDDING UNPROFITABLE BUSINESSES FACED WITH CARPET SALES THAT HAD PLUNGED TO 236 MILLION IN 1992 FROM 371 MILLION IN 1988 FIELDCREST SOLD ITS CARPET AND RUG UNIT EARLIER THIS YEAR FOR 140 MILLION MR FITZGIBBONS ALSO JETTISONED FIELDCREST'S ELECTRICBLANKET OPERATION AFTER SALES DROPPED TO 4 MILLION IN 1991 FROM 50 MILLION JUST TWO YEARS EARLIER AND THE COMPANY RECENTLY OFFERED EARLY RETIREMENT TO 400 OF ITS 2200 SALARIED EMPLOYEES BUT CUTTING WON'T CURE ALL OF FIELDCREST'S WOES THE COMPANY HAS TO SPEND BETWEEN 40 MILLION AND 50 MILLION ON CAPITAL IMPROVEMENTS DURING EACH OF THE NEXT FIVE YEARS ACCORDING TO A RECENT COMPANY NEWSLETTER TOP PRIORITY IS A COLUMBUS GA WEAVING PLANT WHOSE 1200 SHUTTLE LOOMS ARE SO OUTDATED PARTS AREN'T MADE ANYMORE PUTTING IN JUST 170 MODERN SHUTTLELESS LOOMS WOULD HANDLE THE SAME CAPACITY BUT THE NEWSLETTER PUTS THE PRICE OF A NEW PLANT AT 80 MILLION AND UPDATING OTHER PLANTS AND ENHANCING THE COMPANY'S WAREHOUSING AND DISTRIBUTION SYSTEM ALSO ARE HIGH ON THE TODO LIST OF MR FITZGIBBONS WHO DECLINED TO BE INTERVIEWED FOR THIS ARTICLE EVEN AS FIELDCREST SPENDS MILLIONS TO MODERNIZE IT WILL BE SPENDING MILLIONS MORE TO KEEP UP WITH ITS LOAN PAYMENTS AFTER THE AMOSKEAG BUYOUT FIELDCREST'S 453 MILLION DEBT LOAD WILL REPRESENT MORE THAN TWICE THE COMPANY'S EQUITY ACCORDING TO KAY NORWOOD AN ANALYST AT INTERSTATE/JOHNSON LANE IN CHARLOTTE NC MR FITZGIBBONS ALSO HAS SOME ANGRY SHAREHOLDERS ON HIS HANDS THE AMOSKEAG DEAL VALUED AT ABOUT 145 MILLION INFURIATED MANY FIELDCREST SHAREHOLDERS WHO HAVEN'T SEEN A DIVIDEND SINCE 1990 THE VAST MAJORITY OF AMOSKEAG'S VALUE IS DERIVED FROM ITS FIELDCREST STAKE SO INSTEAD OF GETTING A JUICY ACQUISITION OFFER FIELDCREST STOCKHOLDERS FIND THEMSELVES HOLDING SHARES OF A COMPANY THAT PLANS TO ESSENTIALLY BUY BACK ITS OWN STOCK WHAT WE'RE SEEING HERE IS MANAGEMENT ENTRENCHMENT AT ITS WORST SAYS ERIC LONGMIRE MANAGING DIRECTOR OF WYSERPRATTE & CO A NEW YORK INVESTMENT FIRM WHOSE CUSTOMERS OWN SOME 350000 FIELDCREST SHARES FIELDCREST MAINTAINS THAT THE MOVE IS IN THE COMPANY'S BEST INTEREST IN THE COMPANY NEWSLETTER MR FITZGIBBONS SAYS IF WE HADN'T SPENT THE MONEY TO BUY AMOSKEAG THERE'S NO TELLING WHAT ANOTHER OWNER MIGHT HAVE DONE WITH FIELDCREST FIELDCREST'S MERGER WITH AMOSKEAG IS THE FINAL STEP IN A BYZANTINE BUYOUT PROCESS THAT BEGAN LAST JANUARY FOR DECADES FIELDCREST HAS BEEN CONTROLLED BY A NEW HAMPSHIRE FAMILY TRUST THAT OWNS A BLOCK OF SUPERVOTING SHARES IN AMOSKEAG THIS YEAR THE TRUST DECIDED TO SELL THE STAKE IN A SECRETIVE AND LENGTHY AUCTION FRUSTRATED SPRINGS WENT PUBLIC IN MAY WITH CASH AND STOCK BIDS FOR BOTH FIELDCREST AND AMOSKEAG FIELDCREST REJECTED THE OVERTURE FORCING SPRINGS TO JOIN THE FORMAL AUCTION STRONG BIDS BY SPRINGS FAILED AND WHEN AMOSKEAG AGREED TO BE PURCHASED BY FIELDCREST AT 40 A SHARE SPRINGS WAS LEFT TO PONDER ALTERNATIVE MOVES AS FIELDCREST STRETCHES FOR THE FUNDS TO CARRY ON SPRINGS IS SITTING ON ONE OF THE BEST BALANCE SHEETS IN THE BUSINESS WITH THE COUNTRY'S PREMIER LINE OF TOWELS SPRINGS WOULD BE UNIQUELY POSITIONED TO MARKET PRACTICALLY EVERY COMBINATION OF BEDROOM AND BATHROOM TEXTILES FIELDCREST HASN'T SHOWN ANY DESIRE TO SELL OUT BUT WITH INSIDERS HOLDING ONLY ABOUT 230000 OF FIELDCREST'S 85 MILLION SHARES AFTER THE AMOSKEAG DEAL THE COMPANY HAS LIMITED WAYS TO DEFEND ITSELF SPRINGS ISN'T KNOWN FOR PAYING PREMIUMS FOR ACQUISITIONS IN 1985 IT BOUGHT M LOWENSTEIN CORP FOR 91 TIMES EARNINGS AT A TIME WHEN COMPETITORS WERE PAYING UP TO 20 TIMES EARNINGS FOR TEXTILE COMPANIES ACCORDING TO MS NORWOOD OF INTERSTATE/JOHNSON LANE SPRINGS ALSO ISN'T ACCUSTOMED TO HOSTILE TAKEOVERS BUT HOSTILITY IS IN THE EYE OF THE BEHOLDER WE ALONG WITH ALL THE OTHER FIELDCREST SHAREHOLDERS SAYS MR LONGMIRE AT WYSERPRATTE WOULD LIKE TO INVITE THEM TO MAKE AN OFFER 9311090113 931109 GOLDMAN SACHS SEXBIAS VERDICT DISMISSED BY JUDGE BY MARGARET A JACOBS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A FEDERAL JUDGE THREW OUT A JURY VERDICT AGAINST GOLDMAN SACHS & CO IN A CLOSELY WATCHED SEXDISCRIMINATION CASE IN THE UNUSUAL RULING JUDGE KIMBA L WOOD FOUND THAT FORMER GOLDMAN VICE PRESIDENT JOANNE FLYNN HAD FAILED TO PRESENT EVIDENCE DURING A 10DAY TRIAL THAT SHE WAS THE VICTIM OF SEX DISCRIMINATION A JURY OF FIVE WOMEN AND FOUR MEN CONCLUDED ON OCT 28 THAT GOLDMAN VIOLATED FEDERAL ANTIDISCRIMINATION LAWS WHEN IT DENIED MS FLYNN A PROMOTION AND THEN FIRED HER THE EVIDENCE IN THIS CASE OVERWHELMINGLY SUPPORTS GOLDMAN SACHS'S CONTENTIONS THAT EACH OF ITS DECISIONS CONCERNING MS FLYNN WAS FAIR AND NOT SEXBASED SAID JUDGE WOOD IN A 31PAGE OPINION SHE NOTED THAT IN PRESENTING CLOSING ARGUMENTS MS FLYNN'S LAWYER HAD ASKED THE JURY TO CONSIDER IMPROPER FACTORS SUCH AS THE WEALTH OF THE DEFENDANT AND TO SPECULATE AS TO WHY MS FLYNN WASN'T PROMOTED IT IS RARE FOR A FEDERAL TRIAL JUDGE TO OVERRULE A JURY AND DISMISS ITS VERDICT TO DO SO A JUDGE MUST FIND SUCH A COMPLETE ABSENCE OF EVIDENCE SUPPORTING THE VERDICT THAT THE JURY'S FINDINGS COULD ONLY HAVE BEEN THE RESULT OF SHEER SURMISE AND CONJECTURE JUDGE WOOD SAID IN HER OPINION IN THE EVENT THAT HER DECISION IS OVERTURNED ON APPEAL JUDGE WOOD GRANTED GOLDMAN SACHS'S MOTION FOR A NEW TRIAL RATHER THAN A REINSTATEMENT OF THE JURY VERDICT MS FLYNN 40 YEARS OLD HAD EARNED 180000 A YEAR TEACHING SALES TECHNIQUES UNTIL SHE WAS LET GO IN 1989 SHE CONTENDED THAT SHE WAS TERMINATED FOR HAVING FIRED A MALE EMPLOYEE GOLDMAN COUNTERED THAT SHE WAS UNABLE TO WORK WITH THE FEMALE BOSS WHO WAS PROMOTED TO A POSITION MS FLYNN HAD WANTED MS FLYNN SOUGHT MORE THAN 1 MILLION IN DAMAGES BUT THE JURY DIDN'T REACH THAT STAGE IN THE TRIAL STEVEN HYMAN MS FLYNN'S ATTORNEY SAID HE WOULD APPEAL IMMEDIATELY WE ARE CONFIDENT THAT ON APPEAL WE WILL SUCCEED HE SAID IN A STATEMENT GOLDMAN SAID IT WAS PLEASED THIS IS NOT A DECISION ON TECHNICAL LEGAL GROUNDS APPELLATE COURTS TYPICALLY DON'T LOOK FAVORABLY UPON TRIAL JUDGES DISCARDING JURY VERDICTS AND THE RULING IS EXPECTED TO BE SCRUTINIZED BY THE SECOND US CIRCUIT COURT OF APPEALS WALL STREET IS BELIEVED TO LAG BEHIND MANY OTHER INDUSTRIES IN PROMOTING WOMEN BUT FEW SEXDISCRIMINATION SUITS HAVE BEEN FILED AGAINST INVESTMENT BANKS SOME EMPLOYMENT LAWYERS HAVE SAID THE FLYNN CASE WAS DIFFICULT TO PROVE IN PART BECAUSE THE PERSON PROMOTED OVER MS FLYNN WAS ALSO A WOMAN HAD SHE WON A LARGE DAMAGES AWARD THESE LAWYERS PREDICTED WALL STREET WOULD HAVE BEEN THE TARGET OF MANY MORE SUCH SUITS 9311090112 931109 WHO'S NEWS NUKOTE HOLDINGS INC NUKOTE HOLDINGS INC DALLAS BRIAN D FINN 32 YEARS OLD MANAGING DIRECTOR AT CS FIRST BOSTON AND COHEAD OF ITS MERGERS AND ACQUISITIONS DEPARTMENT WAS ELECTED TO THE BOARD OF THIS MAKER OF PRINTING PRODUCTS BOOSTING THE NUMBER OF DIRECTORS TO SEVEN DANIEL M KERRANE 53 YEARS OLD NUKOTE'S CHIEF FINANCIAL OFFICER ALSO WAS ELECTED TO THE BOARD HE SUCCEEDS LARRY H HOLSWADE 56 YEARS OLD WHO RESIGNED FROM THE BOARD MR HOLSWADE WHO WAS REPLACED AS NUKOTE'S CHIEF EXECUTIVE OFFICER IN APRIL SAID HE RESIGNED BECAUSE THE COMPANY NEEDED ANOTHER HANDSON MANAGER ON THE BOARD I JUST DIDN'T WANT TO BE INVOLVED IN THE DAYTODAY ACTION SAID MR HOLSWADE WHO IS NOW A CONSULTANT I WANTED TO TAKE A BREAK 9311090111 931109 FOREIGN EXCHANGE OVERSOLD MARK REBOUNDS TO POST GAINS PIERCES KEY RESISTANCE LEVEL OF THE YEN BY BENJAMIN DOLVEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE MARK REVERSED DIRECTION AND POSTED MODERATE GAINS MONDAY AS INVESTORS DECIDED THAT THE GERMAN CURRENCY HAD BEEN OVERSOLD THE MARK ENDED HIGHER AGAINST MOST MAJOR CURRENCIES IN WHAT DEALERS DESCRIBED AS TECHNICALLY ORIENTED TRADING MARKYEN TRADING WAS PARTICULARY ACTIVE WITH THE MARK PIERCING A CRUCIAL RESISTANCE LEVEL AND HOLDING ABOVE IT FOR MOST OF THE TRADING DAY THE DAY'S BIGGEST MOVES WERE MARKED BY THE NEW ZEALAND DOLLAR WHICH DROPPED SHARPLY FOLLOWING A WEEKEND ELECTION THAT YIELDED NO CLEARCUT VICTOR ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10775 YEN AND AT 16837 MARKS MEANWHILE LATE IN NEW YORK THE MARK WAS TRADING AT 6399 YEN UP FROM 6395 YEN LATE FRIDAY IN NEW YORK THE POUND WAS TRADING AT 24962 MARKS OFF FROM 25132 MARKS FRIDAY DEALERS SAID THE MARK HAD BEEN OVERSOLD DURING THE PAST TWO WEEKS AS A STRING OF POOR ECONOMIC REPORTS AND PERCEPTIONS THE BUNDESBANK WAS TAKING AN EASIER MONETARY STANCE PUSHED THE GERMAN CURRENCY LOWER AGAINST MOST OTHER MAJOR CURRENCIES INVESTORS HAD TAKEN SUBSTANTIAL SHORT POSITIONS IN THE MARK BETTING ON FURTHER DECLINES BY THE GERMAN CURRENCY MOST OBSERVERS SAID MONDAY'S GAINS WEREN'T A RESULT OF A MAJOR CHANGE IN THE ECONOMIC PICTURE BUT REFLECTED THE SENSE THAT THE MARK WAS A PRIME CANDIDATE FOR A REBOUND FOLLOWING ITS SLIDE AGAINST THE YEN DEALERS NOTED THAT THE MARK'S PENETRATION OF THE 64YEN LEVEL WAS TECHNICALLY IMPORTANT THE MARK FIRST TESTED THE LEVEL AND THEN PIERCED IT IN SHORT ORDER DEALERS NOTED SOME STOPLOSS MARK PURCHASES ABOVE THE 6420YEN LEVEL BUT THE MARK DROPPED OFF IN THE NORTH AMERICAN AFTERNOON AFTER HITTING AN INTRADAY HIGH OF 6429 YEN LATER THE MARK TRADED DOWN TO 6397 YEN AND HOVERED AROUND THE 64YEN LEVEL FOR THE REST OF THE TRADING DAY DEALERS SAID STRONG SELLING PRESSURE HAD EMERGED FOR THE MARK AT THE 6420YEN LEVEL THE GERMAN CURRENCY POSTED GAINS AGAINST THE BRITISH POUND THROUGHOUT THE TRADING DAY DEALERS SAID THE UK PRODUCER PRICE INDEXES WHICH PAINTED AN UNEXPECTEDLY POSITIVE PICTURE OF LOW BRITISH INFLATION MAY HAVE SAPPED SOME STRENGTH FROM STERLING BY RAISING MORE WORRIES ABOUT AN INTERESTRATE CUT BY DEC31 DESPITE RECENT STATEMENTS BY UK ECONOMIC OFFICIALS THAT CONDITIONS DON'T WARRANT AN INTERESTRATE CUT AT THE MOMENT THE CURRENCY MARKET HAS LARGELY ASSUMED THAT SUCH A RATE CUT IS IN THE OFFING BY YEAR END MEANWHILE THE NEW ZEALAND DOLLAR SKIDDED ON UNCERTAINTY FOLLOWING A WEEKEND PARLIAMENTARY ELECTION IN WHICH NEITHER THE RULING NATIONAL PARTY NOR THE OPPOSITION LABOR PARTY GAINED A CLEAR MAJORITY THE NEW ZEALAND DOLLAR TRADED LATE IN NEW YORK AT 05445 US CENTS DOWN FROM 05574 US CENTS LATE FRIDAY THE ELECTION RESULT WON'T BE RESOLVED UNTIL NOV 16 AT THE EARLIEST WHEN ABSENTEE BALLOTS ARE COUNTED 9311090110 931109 WHO'S NEWS DIED JOHN L WEHLE 76 CHAIRMAN OF GENESEE CORP SUNDAY IN ROCHESTER NY 9311090109 931109 WHO'S NEWS MADISON GROUP ASSOCIATES INC MADISON GROUP ASSOCIATES INC FORT LAUDERDALE FLA KENNETH L LUCAS 46 YEARS OLD WAS NAMED PRESIDENT OF THIS TELECOMMUNICATIONS AND SPORTSPRODUCTION COMPANY HE TAKES OVER CERTAIN RESPONSIBILITIES PREVIOUSLY PERFORMED BY WILLIAM T CRAIG THE COMPANY'S CHAIRMAN MR LUCAS CAME FROM SCHNEIDER SECURITIES IN DENVER WHERE HE WAS DIRECTOR OF CORPORATE FINANCE 9311090108 931109 LEISURE & ARTS THE NANNY' HAS AN AGENT AND COMES FROM QUEENS BY BARBARA D PHILLIPS NEW YORK LEAF THROUGH ANY HIGHSCHOOL YEARBOOK AND YOU'LL FIND THE STUDENT ACTORS AND ACTRESSES SURE THAT THEIR TALENT DRIVE AND A DASH OF GOOD LUCK WILL LEAD TO HOLLYWOOD SUCCESS YOU'LL ALSO FIND THE FAIRYTALE SWEETHEARTS SURE THAT THEY WILL MARRY AND SPEND THE REST OF THEIR LIVES TOGETHER FOR MOST OF THESE KIDS HIGHSCHOOL DREAMS REMAIN JUST THAT BUT FOR TWO PEOPLE IN MY SENIORCLASS YEARBOOK PROSPECTUS 1975 HILLCREST HIGH SCHOOL QUEENS NY THOSE DREAMS ARE REALITY THEIR NEW TV SERIES THE NANNY ABOUT A SALESWOMAN FROM QUEENS WHO STUMBLES INTO A JOB MINDING THE CHILDREN OF A BROADWAY PRODUCER HAD ITS DEBUT WEDNESDAY ON CBS FRAN DRESCHER FIRST MET PETER MARC JACOBSON IN 10TH GRADE WHEN SHE HAD A ROLE IN YOU'RE A GOOD MAN CHARLIE BROWN FOR WHICH HE PLAYED THE PIANO THE FOLLOWING SUMMER MR JACOBSON WALKED BY MS DRESCHER'S HOUSE EVERY DAY ON HIS WAY TO WORK WE REALLY STARTED TO BECOME GOOD FRIENDS FELL IN LOVE AND WE'VE BEEN TOGETHER EVER SINCE MS DRESCHER SAYS AFTER GRADUATION THE COUPLE BRIEFLY ATTENDED QUEENS COLLEGE ALMA MATER OF SITCOM STARS JERRY SEINFELD AND PAUL REISER BUT WE BOTH DROPPED OUT WITHIN THE FIRST YEAR MS DRESCHER SAYS I COULDN'T EVEN GET INTO ANY ACTING CLASSES AT QUEENS AS A FRESHMAN THEY WERE SO OVERCROWDED AND YET THERE I WAS AUDITIONING AND GETTING COMMERCIALS AND THINGS AS WAS PETER SO WE ENDED UP GOING TO BEAUTYCULTURE SCHOOL INSTEAD JUST TO HAVE SOMETHING TO FALL BACK ON THE COUPLE NEVER HAD TO RELY ON THEIR SCISSORS I DON'T THINK I COULD EVER HAVE STAYED IN THE BUSINESS IF I HAD TO STARVE THROUGH IT AND WORK AS A WAITER OR SOMETHING LIKE THAT I WAS GOING TO MAKE PROGRESS OR PURSUE SOMETHING ELSE MS DRESCHER'S FIRST FILM ROLE WAS IN SATURDAY NIGHT FEVER 1977 SOON AFTER SHE PLAYED A MUCH LARGER PART IN AMERICAN HOT WAX WHICH ALSO FEATURED ANOTHER RELATIVE NEWCOMER JAY LENO MS DRESCHER AND MR JACOBSON WHO HAD TRAVELED TO LOS ANGELES FOR WHAT WAS SUPPOSED TO BE 10 WEEKS NEVER MOVED BACK TO NEW YORK THEY MARRIED A YEAR LATER WHILE CIRCUMSTANCES TOOK FRAN OUT OF NEW YORK YOU CAN'T TAKE NEW YORK OUT OF FRAN WHILE HER HUSBAND IS THE EPITOME OF BLOWDRIED HOLLYWOOD HANDSOMENESS YOU'VE SEEN HIS HAIR BLOW IN THOSE QUIRKY HONDA DEL SOL ADS MS DRESCHER IS IN THE TRADITION OF SMARTMOUTHED BRASSY NOO YAWKERS STRETCHING FROM MAE WEST TO DEBI MAZAR OF LA LAW HER NASAL HONK LIKE THAT OF A TAXI IN RUSHHOUR TRAFFIC HAS COMMANDED ATTENTION IN SUCH FILMS AS THIS IS SPINAL TAP AND CADILLAC MAN AND IT IS JUST THAT SOUND THAT MY OHSOSMART FRIENDS AND I NEARLY 20 YEARS AGO THOUGHT WOULD HOLD OUR CLASSMATE BACK SO WHO KNEW MS DRESCHER USED THAT SOUND TO GOOD EFFECT IN PRINCESSES A SERIES IN WHICH SHE COSTARRED WITH TWIGGY AND JULIE HAGERTY AS A YOUNG ROYAL OF THE JEWISHAMERICAN VARIETY UNFORTUNATELY THE SERIES QUICKLY WAS DEPOSED FROM THE LINEUP BY THE TIME PRINCESSES' ENDED PETER AND I BOTH REALIZED THAT IF WE DIDN'T GET ON THE INSIDE OF THIS INDUSTRY FAST I DIDN'T WANT TO DO IT ANYMORE BECAUSE IT'S JUST TOO FRUSTRATING NOT TO HAVE ANY CONTROL OVER WHAT IS GOING ON WITH YOUR PROJECT I'D RATHER MAKE MY OWN MISTAKES THAN LIVE WITH SOMEBODY ELSE'S SHE SAYS PETER WAS WORKING ALL THESE YEARS AS AN ACTOR BOTH IN TELEVISION AND FILMS AND DOING STAGE WORK BUT IT WAS CLEAR TO BOTH OF US THAT THE DOORS WERE OPENING REALLY FAST AND WIDE FOR HIM FOR HIS IDEAS AS A WRITERPRODUCER IT WOULD JUST FALL IN HIS LAP AND HE WOULD DO A PROJECT BUT THEN HE WOULD WANT TO GO BACK TO ACTING AND NOT REALLY PURSUE IT THIS TIME A BIG DOOR OPENED AND HE WALKED THROUGH IT FULL SPEED AHEAD MR JACOBSON PITCHED AN IDEA TO DAN AYKROYD AND AS LUCK WOULD HAVE IT MR AYKROYD WAS ABOUT TO RUN SOME CONCEPTS BY FOX HE INCLUDED MR JACOBSON'S AND IT WAS THE ONLY IDEA THE NETWORK LIKED IT WAS LIKE THE SPELL WAS BROKEN EVERYTHING BEGAN TO UNFOLD IN A REALLY WONDERFUL WAY MS DRESCHER SAYS THE COUPLE HAD BEEN INVITED TO VISIT FRIENDS IN FRANCE MR JACOBSON WAS BUSY WITH THE FOX PROJECT SO MS DRESCHER FLEW ALONE ON THE PLANE RIDE TO PARIS THE PRESIDENT OF THE CBS NETWORK JEFF SAGANSKY WAS SITTING RIGHT NEXT TO ME MS DRESCHER RECOUNTS I SAID JEFF' AND HE SAID FRAN' AND I THOUGHT THANK YOU LORD' AND RAN TO PUT SOME MAKEUP ON I CAME OUT AND 9 1/2 HOURS LATER HAD THOROUGHLY CONVINCED HIM TO HEAR OUR IDEAS AS IN ALL FAIRY TALES THERE WERE STILL OBSTACLES TO SURMOUNT THAT WAS THE SUMMER BEFORE THIS SUMMER AND WE FILMED THE PILOT THIS SPRING MS DRESCHER SAYS IT HAD TAKEN ALL THAT TIME TO WRITE IT FIND THE STUDIO GET EXPERIENCED EXECUTIVE PRODUCERS TO WORK WITH US AND HELP DEVELOP THE SHOW WITH US HANDPICK ALL THE PEOPLE WHO WORK FOR THE SHOW AND CAST IT BY MAY OR JUNE WE WERE A SOLD SERIES AND BACK IN PRODUCTION BY AUGUST ONE OF THE PEOPLE HANDPICKED BY THE COUPLE CAN ALSO BE FOUND IN MY OLD YEARBOOK OUR COMMUNICATIONSARTS TEACHER STEVE POSNER THEY HAD BEEN LOOKING FOR MR POSNER FOR YEARS BUT HAD BEEN UNABLE TO FIND HIM WHEN I WAS DOING PRINCESSES' MS DRESCHER RECALLS I SAID TO PETER MAYBE STEVE WILL FIND US' BECAUSE HE WAS THE SINGLE MOST INFLUENTIAL PERSON IN OUR EARLY YEARS ONE DAY STEVE CALLED MY AGENT HE DIDN'T EVEN KNOW IF WE WOULD REMEMBER HIM CAN YOU BELIEVE THAT ANYWAY I CALLED RIGHT BACK AND WE'VE HAD HIM IN OUR LIVES EVER SINCE HE WANTED TO BREAK INTO THE BUSINESS HE FELT LIKE HIS WHOLE LIFE HE PLAYED IT SAFE AND DID WHAT WAS EXPECTED OF HIM NOW AT THIS STAGE OF HIS LIFE HE WANTED TO TRY TO DO WHAT HE ALWAYS DREAMED OF MR JACOBSON MADE HIM HIS ASSISTANT ON THE DAN AYKROYD PROJECT AND MR POSNER THEN WORKED ON DR QUINN MEDICINE WOMAN PERFORMING AS EVERYTHING FROM ACTOR TO DIALOGUE COACH HE'S NOW DIALOGUE COACH FOR THE CHILDREN ON THE NANNY I ASK MS DRESCHER AND MR JACOBSON TO SEND MY WARM REGARDS TO MR POSNER YOU SEE HE WAS MY MENTOR TOO HE PUT ME ON THE HIGHSCHOOL RADIO STATION WHEN I WAS 15 ENCOURAGED ME AND GAVE ME THE SCHOOL'S BROADCASTING AWARD AS THE INTERVIEW NEARS ITS END MS DRESCHER PICKS UP MY YEARBOOK AND LOOKS FOR HER YOUNGER SELF I FORGOT TO WASH MY HAIR THE DAY THEY TOOK THAT PICTURE SHE READS HER CAPTION CAREER GOAL ACTRESS' UNBELIEVABLE IT'S ALREADY IN THERE I HAND HER MY PEN AND SHE WRITES WELL HERE WE ARE BETTER LATE THAN NEVER GOOD LUCK TO YOU MY DEAR THINK PEACE MS PHILLIPS IS AN ASSISTANT EDITORIAL FEATURES EDITOR FOR THE JOURNAL 9311090107 931109 LETTERS TO THE EDITOR THE ECONOMIC COSTS OF CURBING GUN DEALERS JOSH SUGARMAN'S OCT 4 EDITORIAL PAGE ARTICLE WANT A GUN BECOME A GUN DEALER SUMMARIZES SEVERAL POLICIES DESIGNED TO STEM THE FLOW OF GUNS TO AMERICA'S CRIMINALS AND SIMULTANEOUSLY NOT MAKE IT ANY MORE DIFFICULT FOR LAWABIDING CITIZENS TO OBTAIN FIREARMS THE POLICIES INCLUDE 1 RAISING THE LICENSING FEE ON GUN DEALERS TO 2500 FROM 30 2 RESTRICTING FEDERAL FIREARMS LICENSES TO BONA FIDE GUN DEALERS AND 3 DEVELOPING A MORE COMPREHENSIVE APPLICATION FORM AND FINGERPRINTING APPLICANTS THE ECONOMIC EFFECTS OF THESE MEASURES ARE MANIFOLD RAISING THE LICENSING FEE AND IMPOSING NONMONETARY COSTS SUCH AS FINGERPRINTING UPON LEGITIMATE GUN DEALERS INCREASES THEIR COSTS AND RAISES GUN PRICES SMALL GUN DEALERS' PROFITS DECLINE AND THEY CLOSE UP SHOP LARGE GUN DEALERS GAIN BUSINESS FROM SMALL GUN DEALERS SINCE THE ADDED COSTS ARE FIXED THE GUN BUYER IS FACED WITH HIGHER SEARCH COSTS TO LOCATE AND BUY GUNS AS WELL AS HIGHER GUN PRICES HENCE CONTRARY TO MR SUGARMAN'S STATEMENT IT IS MORE DIFFICULT FOR LAWABIDING CITIZENS TO OBTAIN FIREARMS THE MEASURES ARE THE EQUIVALENT OF PLACING A LUMP SUM TAX ON DEALERS IN FIREARMS THERE IS MORE SINCE ILLEGITIMATE GUN PRODUCERS AND SELLERS DO NOT HAVE TO PAY THESE COSTS THE RELATIVE PRICE OF LEGITIMATE GUNS RISES COMPARED WITH THE PRICE OF ILLEGITIMATE GUNS THEREFORE MORE ILLEGITIMATE GUNS ARE PURCHASED AND THEY GAIN MARKET SHARE AT THE EXPENSE OF LEGITIMATE GUNS NOT ONLY DOES THE FLOW OF GUNS TO AMERICA'S CRIMINALS NOT DECLINE BY THESE MEASURES BUT A GREATER INCENTIVE TO PURCHASE GUNS THROUGH ILLEGITIMATE CHANNELS IS CREATED BY THESE MEASURES THE SUREST WAY TO LOWER THE ILLEGITIMATE USE OF GUNS IS TO MAKE THE ROAD TO SUCCESS BY LEGITIMATE MEANS EASIER THAT IS RESTRUCTURE AMERICA'S ECONOMIC INCENTIVES SO THAT EDUCATION AND WORK BECOME ATTRACTIVE AVENUES TO THOSE WHO NOW TURN TO CRIME 9311090106 931109 BUSINESS BRIEF MERCKMEDCO DEAL WON'T BE CHALLENGED ON ANTITRUST GROUNDS WASHINGTON THE FEDERAL TRADE COMMISSION SAID IT WILL NOT CHALLENGE THE 6 BILLION ACQUISITION OF MEDCO CONTAINMENT SERVICES INC BY MERCK & CO FOLLOWING AN INVESTIGATION OF ANTITRUST ISSUES RELATING TO THE DEAL MEDCO ROSE 125 TO 3825 IN NASDAQ STOCK MARKET TRADING WHILE MERCK FELL 125 CENTS TO 32 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING COMPETITORS HAD PREVIOUSLY RAISED ANTITRUST CONCERNS SAYING THAT PROBLEMS COULD ARISE FROM HAVING A SINGLE DRUG COMPANY OWN A MAJOR DISTRIBUTOR OTHERS SUGGESTED THAT IF MEDCO FAVORED MERCK PRODUCTS MEDCO'S CREDIBILITY WITH EMPLOYERS AS A DISCOUNT PROVIDER COULD BE HURT NEITHER MERCK NOR ANY OTHER DRUG COMPANY HAS MORE THAN 10 OF THE US PRESCRIPTION DRUG BUSINESS WHILE MEDCO DISTRIBUTES TO 10 TO 20 OF PRESCRIPTION DRUG USERS SEPARATELY MERCK AND MEDCO SAID THEY EXTENDED THEIR DEADLINE TO TERMINATE A PROPOSAL TO MERGE MEDICAL MARKETING GROUP INC WITH A MEDCO UNIT MEDICAL MARKETING MONTVALE NJ PROVIDES MARKETING SERVICES TO DRUG COMPANIES THE PROPOSAL HAD CALLED FOR MEDCO TO BUY THE REMAINING 458 EQUITY STAKE IN MEDICAL IT DOESN'T ALREADY OWN FOR 25 A SHARE THE DEADLINE TO BUY THE EQUITY STAKE HAS BEEN EXTENDED TO MONDAY FROM THIS PAST FRIDAY 9311090105 931109 THORN EMI SELECTS RUDMAN TO CONDUCT REVIEW OF RENTAL UNIT LONDON THORN EMI PLC SAID IT HAS HIRED EXUS SENATOR WARREN RUDMAN TO CONDUCT AN INDEPENDENT REVIEW OF THE OPERATIONAL PROCEDURES FOLLOWED BY RENTACENTER ITS SINGLE MOST PROFITABLE SUBSIDIARY THORN SAID THE INQUIRY INTO RENTACENTER WHICH RENTS ASSORTED MERCHANDISE WITH AN OWNERSHIP OPTION TO LOWINCOME CUSTOMERS WAS PROMPTED BY A SEPT 22 ARTICLE IN THE WALL STREET JOURNAL DETAILING THE RENTTOOWN CHAIN'S CONTROVERSIAL MARKETING AND REPOSSESSION PRACTICES THE CHAIN IS BASED IN WICHITA KAN IN A STATEMENT THE ENTERTAINMENT AND RENTAL GIANT SAID THE REPORT WILL BE COMPLETED BY THE END OF DECEMBER AND DESCRIBED IT AS A WHOLLY OBJECTIVE EVALUATION OF RENTACENTER'S COMPLIANCE WITH ALL RELEVANT REGULATIONS MR RUDMAN NOW A LAWYER WITH THE NEW YORK FIRM OF PAUL WEISS RIFKIND WHARTON & GARRISON SAID HE WAS APPROACHED BY SIR COLIN SOUTHGATE THORN'S CHIEF EXECUTIVE IN THE PAST COUPLE OF WEEKS MR RUDMAN SAID THE INVESTIGATION IS OF A VERY BROAD SCOPE AND THAT WAS MY CHARGE SIR COLIN SAID THORN EMI IS CONFIDENT THAT RENTACENTER'S PROCEDURES ARE SECOND TO NONE IN ITS INDUSTRY AND STRONGLY GUARD AGAINST THE ABUSE ALLEGED WALTER E BUD GATES RENTACENTER'S CHIEF EXECUTIVE CHARACTERIZED THE JOURNAL'S ARTICLE AS PROFOUNDLY WRONG AND GROSSLY UNFAIR HE ADDED IT DID NOT ACCURATELY REPORT OUR COMPANY POLICIES OR PRACTICES PAUL E STEIGER MANAGING EDITOR OF THE JOURNAL SAID WE ARE PROUD OF THE ARTICLE AND REMAIN CONFIDENT OF ITS FUNDAMENTAL ACCURACY AND FAIRNESS 9311090104 931109 MASSACHUSETTS BANKER ENTERS PLEA OF GUILTY TO TAKING PAYMENTS BOSTON THE FORMER PRESIDENT OF THE HINGHAM INSTITUTION FOR SAVINGS PLEADED GUILTY IN FEDERAL COURT HERE TO CHARGES THAT HE RECEIVED ILLEGAL PAYMENTS FROM REAL ESTATE DEVELOPERS WHO RECEIVED LOANS FROM THE BANK WILFRED H CREIGHTON WHO WAS FIRED FROM THE BANK IN 1989 FOR HIS PART IN THE SCHEME ALSO PLEADED GUILTY TO CHARGES THAT HE WILLFULLY SUBSCRIBED TO FALSE FEDERAL INCOME TAX FORMS HE PLEADED GUILTY TO 11 COUNTS IN ALL HE ORIGINALLY HAD BEEN CHARGED WITH 25 COUNTS OF WRONGDOING MR CREIGHTON REACHED AT HOME DECLINED COMMENT A CALL TO HIS LAWYER WAS NOT IMMEDIATELY RETURNED SENTENCING IS SCHEDULED FOR FEB 9 ACCORDING TO THE US ATTORNEY'S OFFICE MR CREIGHTON WHILE PRESIDENT AND CHIEF EXECUTIVE OF THE BANK TOOK EIGHT PAYMENTS TOTALING 243912 BETWEEN JULY 1986 AND NOVEMBER 1988 IN CONNECTION WITH CERTAIN REAL ESTATE DEVELOPMENTS THE US ATTORNEY'S OFFICE SAID THE BANK LOST ABOUT 21 MILLION IN CONNECTION WITH THE LOANS ON WHICH MR CREIGHTON RECEIVED FUNDS 9311090103 931109 WHO'S NEWS CELGENE CORP CELGENE CORP WARREN NJ SOL J BARER 46 YEARS OLD WAS NAMED PRESIDENT OF THIS BIOTECHNOLOGY COMPANY SUCCEEDING THOMAS H ODIORNE 52 WHO DIED IN JULY MR BARER HAD BEEN EXECUTIVE VICE PRESIDENT SCIENCE AND TECHNOLOGY 9311090102 931109 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN AS PHILIPPINE PRESIDENT FIDEL RAMOS PREPARED FOR A TWOWEEK US VISIT TO COURT INVESTMENT TENS OF THOUSANDS OF WORKERS RALLIED TO DEMAND PAY RAISES TO CATCH UP WITH INFLATION HE INSISTS GOVERNMENTORDERED PAY BOOSTS WOULD HURT WEAK INDUSTRIES AND INVESTMENT FROM ABROAD IN THE US MR RAMOS WILL MEET WITH PRESIDENT CLINTON BUSINESS PEOPLE AND FILIPINOAMERICAN LEADERS AND ATTEND THE ASIAPACIFIC ECONOMIC COOPERATION FORUM'S SUMMIT IN SEATTLE THE PHILIPPINES CEASED TO BE A MAJOR STRATEGIC ALLY TWO YEARS AGO WITH MOVES THAT LED TO THE US MILITARY DEPARTURE BUT THE US REMAINS A KEY TRADING PARTNER TAKING A THIRD OF PHILIPPINE EXPORTS AND SUPPLYING A FIFTH OF IMPORTS MR RAMOS'S GOVERNMENT HAS DEREGULATED FOREIGNEXCHANGE DEALINGS OPENED UP TELECOMMUNICATIONS AND VOWED TO FIX BY YEAR END THE ELECTRICITY OUTAGES THAT HAVE CRIPPLED THE ECONOMY IT IS COUNTING ON FOREIGN INVESTMENT TO HELP UPGRADE DILAPIDATED INFRASTRUCTURE BUSINESS INTERESTS IN THE EUROPEAN COMMUNITY CONFOUNDED EXPECTATIONS BY FAVORING EC LEGISLATION ON ENVIRONMENTAL LIABILITY COMPANIES RANGING FROM CHEMICAL MAKERS AND LANDFILL OPERATORS TO BANKS AND INSURERS AT AN EC HEARING LAST WEEK SAID POLLUTERS SHOULD PAY FOR ENVIRONMENTAL DAMAGE THEY CAUSE AMONG SUGGESTIONS WASTE HANDLERS SHOULD SET UP A CLEANUP FUND LENDERS STUDY ENVIRONMENTAL RISKS OF INDUSTRIAL BORROWERS AND INSURERS COVER ENVIRONMENTAL LIABILITY SUCH IDEAS REFLECT GROWING RECOGNITION THAT THE EC WILL TOUGHEN ENVIRONMENTAL RULES AND THAT BUSINESS WANTS A PART IN SHAPING THEM SOUTH KOREA ALARMED BY RAPIDLY DECLINING INVESTMENT FROM ABROAD WILL ALLOW FOREIGN BUSINESSES FOR THE FIRST TIME TO BUY LAND FOR OFFICE SPACE AND EMPLOYEE HOUSING THE DEREGULATON PLANS STARTING NEXT MARCH ALSO WOULD CUT THE INVESTMENT APPLICATION PERIOD TO 10 DAYS FROM 30 ELIMINATE RESTRICTIONS ON CAPITAL INVESTMENTS IN ADVANCEDTECHNOLOGY INDUSTRIES AND EASE TAXES ON SOME FOREIGN INVESTMENTS AND A NEW GOVERNMENT PANEL WILL ADDRESS LABOR DISPUTES TO HELP REDUCE FRANCE'S 118 UNEMPLOYMENT RATE THE SENATE APPROVED EXPERIMENTING WITH A 32HOUR WORKWEEK AND A ONEDAY PAY CUT UNIONS OPPOSE THE PLAN WHICH REQUIRES APPROVAL BY THE CHAMBER OF DEPUTIES THE PROPOSAL TO REDUCE THE 39HOUR WORKWEEK IS AIMED AT ENABLING BUSINESSES TO SPREAD THEIR JOBS TO MORE WORKERS AMID FRANCE'S ECONOMIC SLUMP THE BRAZILIAN AUTO INDUSTRY'S SALES THIS YEAR THROUGH OCTOBER TOTALED 874000 VEHICLES UP 44 FROM A YEAR EARLIER SALES HAVE BOOMED SINCE AN AGREEMENT EARLIER THIS YEAR BY ASSEMBLERS PARTS MAKERS DISTRIBUTORS AND GOVERNMENTS TO ACCEPT LOWER PROFIT MARGINS AND TAX RATES THE INDUSTRY CREATED 2800 JOBS THIS YEAR THE AUTO MAKERS' TRADE GROUP PREDICTED RECORD 1993 PRODUCTION OF 135 MILLION AUTOS TRUCKS AND BUSES IN THE FIRST 10 MONTHS OUTPUT JUMPED 32 TO 12 MILLION VEHICLES VIETNAM HAS GREAT ECONOMIC POTENTIAL A WORLD BANK STUDY STATES BUT NEEDS TO MAKE MANY POLICY CHANGES ON THE STATE'S ROLE AND TO DEVELOP BASIC INFRASTRUCTURE THE REPORT WHICH CITES TREMENDOUS PROGRESS IN VIETNAM'S PURSUIT OF A MARKET ECONOMY COINCIDES WITH AN INTERNATIONAL DONOR CONFERENCE OPENING TODAY IN PARIS THE GATHERING THE FIRST SINCE THE VIETNAM WAR ENDED IN 1975 WILL INDICATE HOW MUCH HELP VIETNAM CAN EXPECT VIETNAM IS TO OUTLINE ITS DEVELOPMENT PRIORITIES THROUGH THE YEAR 2000 IT WANTS 20 BILLION IN FOREIGN FUNDING AT LEAST 60 IN DIRECT INVESTMENT AND THE REST IN OFFICIAL AID TO BE MATCHED BY DOMESTIC INVESTMENT THE NEW PRESIDENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT OUTLINED A REORGANIZATION INCLUDING LAYOFFS AND CLOSER SCRUTINY OF SPENDING WITH THE AIM OF RESTORING CREDIBILITY THE EBRD SET UP 2 1/2 YEARS AGO BY WESTERN GOVERNMENTS TO AID EASTERN EUROPE HAS BEEN CRITICIZED FOR MISPLACED PRIORITIES AND LACK OF EFFECTIVENESS LAST SPRING THE FORMER PRESIDENT AND FOUNDER JACQUES ATTALI WAS LAMBASTED FOR LAVISH PERQUISITES AND SPENDING ON THE BANK'S LONDON HEADQUARTERS THE NEW PRESIDENT JACQUES DE LAROSIERE A FORMER FRENCH CENTRAL BANK GOVERNOR SAID 20 TO 30 OF THE 700 EMPLOYEES COULD BE DISMISSED THE BUDGET AT THE BANK HAD CALLED FOR A STAFF INCREASE TO 800 MEANWHILE HE TRIPLED TO 124 FROM 41 THE NUMBER OF BANKERS WORKING ON PRIVATE PROJECTS TO WHICH THE EBRD IS REQUIRED TO LEND 60 OF ITS MONEY BUT HAS HAD TROUBLE DOING THE EBRD BOARD YESTERDAY APPROVED A REORGANIZATION OF MERCHANT AND DEVELOPMENT BANKING INTO NORTH AND SOUTH OPERATIONAL TEAMS AND SHUFFLED TOP AIDES ABOUT 54 MILLION TOURISTS VISITED THE CZECH REPUBLIC IN THIS YEAR'S FIRST NINE MONTHS UP 55 FROM A YEAR EARLIER AND THROUGH AUGUST TOURISM SPENDING JUMPED 38 TO 911 MILLION AS GERMAN POLITICIANS AND BUSINESS LEADERS DEBATE HOW TO IMPROVE COMPETITIVENESS HURT BY HIGH PAY AND SOCIAL SPENDING ABOUT 30 OF INDUSTRY IS CONSIDERING MOVING SOME PRODUCTION OUTSIDE THE COUNTRY IN THE NEXT THREE YEARS A GERMAN CHAMBER OF COMMERCE AND INDUSTRY SURVEY FOUND 9311090101 931109 LEISURE & ARTS PORTRAITS OF THE ARTIST AS YOUNG LOSER BY DEBORAH SOLOMON NEW YORK IS BEING A HIGHSCHOOL REJECT WITH BAD SKIN AND AN INABILITY TO GET ANY DATES ENOUGH TO SUSTAIN AN ENTIRE ARTISTIC CAREER THIS IS THE QUESTION RAISED BY MIKE KELLEY AN INTERNATIONAL ART STAR WHOSE WORK SPECIALIZES IN THE WOUNDS OF ADOLESCENCE MR KELLEY HASN'T LET HIS OSTENSIBLY POOR SELFIMAGE PREVENT HIM FROM REAPING WORLDLY REWARDS THE LATEST OF WHICH IS THE RETROSPECTIVE OF HIS WORK AT THE WHITNEY MUSEUM OF AMERICAN ART A 39YEAROLD DETROIT NATIVE WHO CURRENTLY LIVES IN LOS ANGELES MR KELLEY EARNED HIS FIRST FAME IN THE LATE 80S WHEN HE BEGAN SHOWING ASSEMBLAGES OF TATTERED DOLLS AND STUFFED ANIMALS YOU MIGHT NOT THINK THAT CUDDLY BUNNIES AND FUZZY BLUE PUPPIES RETRIEVED FROM THE BINS OF THRIFT SHOPS WOULD HAVE MUCH EXPRESSIVE POTENTIAL YET MR KELLEY MANAGED TO TURN THEM INTO WORKS OF UNEXPECTED FEELING HIS CREATIONS WERE OBVIOUSLY CAMPY BUT THEY SPOKE AS WELL OF THE DARK ANGSTRIDDEN UNDERSIDE OF CHILDHOOD AND AS SUCH WENT BEYOND THE CUTENESS OF THEIR OWN SURFACES AS WELL AS OF TODAY'S ART WORLD WHAT WEARS WELL IN A SOHO GALLERY DOES NOT NECESSARILY TRANSLATE INTO A WINNING MUSEUM SHOW AND IT WASN'T CLEAR BEFORE THIS RETROSPECTIVE OPENED THAT MR KELLEY COULD WITHSTAND SUCH EXPOSURE HE IS AFTER ALL AN ARTIST WHO HAS NEVER PROVEN HE CAN DO MUCH BESIDES PLAY WITH TOYS MIKE KELLEY CATHOLIC TASTES IT REMAINS UP THROUGH FEB 20 BEFORE TRAVELING TO LOS ANGELES AND STOCKHOLM CONFIRMS MR KELLEY AS A ONENOTE ARTIST BUT IT ALSO PRESENTS HIM AS A FIGURE OF APPEALING EXCESS WHOSE WORK ENGAGES US DESPITE OUR BETTER JUDGMENT MR KELLEY GREW UP IN THE '60S WHEN POP ART WAS KING HIS RECYCLING OF FOUND OBJECTS HIS INTEREST IN NOSTALGIA HIS CULTIVATION OF AN ARRESTED SELF ALL OF THIS DERIVES DIRECTLY FROM POP EVEN SO HE IS FAR REMOVED FROM POP PREDECESSORS SUCH AS ROY LICHTENSTEIN WHOSE WHOLESOME VISIONS OF CHERRY PIE AND ROASTING TURKEYS ARE NOW AT THE GUGGENHEIM MR LICHTENSTEIN'S ARTISTIC PERSONA IS THAT OF THE HIGHSCHOOL WISE GUY WHO SAT IN CLASS BARELY ABLE TO CONCEAL HIS SMIRK MR KELLEY BY CONTRAST ADOPTS THE PERSONA OF THE SCHOOL LOSER THE SKINNY PASSIVE INARTICULATE DREAMER LOST IN FANTASIES OF HEROISM BUT BARELY ABLE TO MUTTER HIS NAME HOW ELSE TO EXPLAIN THE FIXATION ON STUFFED ANIMALS AND THE DAYDREAMY WORLD THEY EVOKE THEY MAKE AN IMPRESSIVE SHOWING AT THE WHITNEY THEY VARIOUSLY HANG ON THE WALL FALL FROM THE CEILING OR LIE ON THE FLOOR AND ARE ALL MADE TO ENACT HUMAN DRAMAS THEY CAN BE ALONE ENTWINED OR ESTRANGED MY FAVORITE IS ARENA 9 BLUE BUNNY 1990 A STARKLY AFFECTING WORK IN WHICH A TINY SKYBLUE BUNNY IS PROPPED IN THE CENTER OF A MATCHING WOOLEN BLANKET THE BUNNY IS A LOATHSOME PIECE OF KITSCH WITH A FLOWER ON HIS CHEST A SMILE ON HIS FACE AND HIS ARMS OUTSTRETCHED AS IF FOR A HUG YET SITTING ON THE MUSEUM'S CONCRETE FLOOR THE 6INCHHIGH OBJECT RADIATES VULNERABILITY BECAUSE IT APPEARS THREATENED BY THE SPACE AROUND IT EVEN THE BLANKET WITH ITS WORN PILLY SURFACE IS FREIGHTED WITH EMOTION IT'S NOT A SYMBOL OF COZINESS BUT OF CONSTRICTION EVOKING A LONER TRAPPED BENEATH THE COVERS WITH ONLY HIS DREAMS AND WHAT EXACTLY DOES MR KELLEY DREAM ABOUT AN INKLING IS PROVIDED IN PAY FOR YOUR PLEASURE 1988 A LITERAL HALL OF FAME LINED WITH 40ODD BLOWUPS OF THE ARTIST'S HEROES AS WE STROLL PAST THE IMAGES OF COURBET AND VERONESE AND BAKUNIN THE MEN SEEM INTERCHANGEABLY AUGUST WITH THEIR KNOWING GLANCES AND HEAVY BEARDS THEIR BIG GLEAMING CRANIUMS MR KELLEY WANTS TO BE PART OF THE GREAT TRADITION OF ART AND SEE HIMSELF PICTURED WITH HIS HEROES BUT INSTEAD OF INSPIRING HIM THE PAST ONLY CRUSHES HIM IT MAKES HIM FEEL 6 INCHES TALL HIS FEELINGS OF INADEQUACY TAKE A COMIC TURN IN ANTIQUATED PREMATURELY AGED 1987 A PINKVARNISHED DRESSER THAT'S SUPPOSED TO LOOK LIKE A RELIC FROM A TEENAGE GIRL'S BEDROOM BIRTHCONTROL PILLS AND A LOCKED DIARY ARE HIDDEN UNDER THE DRESSER AND IN THE SPACE ON TOP RESERVED FOR MOVIESTAR FAN PICTURES MR KELLEY HAS PLACED PHOTOS OF HIMSELF A THIN HOMELY MAN WITH LONG HAIR AND A STONY EXPRESSION HE LOOKS LESS LIKE THE OBJECT OF TEENAGE IDOLATRY THAN AN IMAGE ON A WANTED POSTER THE KELLEY RETROSPECTIVE WAS ORGANIZED BY ELISABETH SUSSMAN WHO RECEIVED A CRITICAL FLOGGING LAST SPRING AS THE CURATOR OF THE WHITNEY BIENNIAL THE SHOW THAT EVERY TWO YEARS MAKES US SUSPECT THE WHITNEY IS LOST AT SEA THE KELLEY RETROSPECTIVE HOWEVER REMINDS US THAT THERE IS A PLACE FOR A MUSEUM OF CONTEMPORARY AMERICAN ART EVEN WHEN THE SHOWS ARE AS IMPERFECT AS THIS ONE IT GETS OFF TO A PARTICULARLY WEAK START BEGINNING WITH AN INCOMPREHENSIBLE MAZE OF PROPS AND DRAWINGS FROM MR KELLEY'S EARLY DAYS AS A PERFORMANCE ARTIST THEY ARE DISTINGUISHED ONLY BY THEIR DOPEY ARTSCHOOL HUMOR MR KELLEY'S IDEA FOR HIS MONKEY ISLAND PROJECT WE LEARN FROM A WALL LABEL CAME FROM A MONKEY'S BEHIND HE NEVER THREW OFF HIS LOVE OF FILTH THIS IS PARTICULARLY EVIDENT IN HIS PAINTINGS BLACKONWHITE IMAGES WHOSE BULGING FORMS LIKE THOSE OF ANOTHER LAPSED CATHOLIC SALVADOR DALI FLAUNT THEIR FECAL IMPLICATIONS THE WHITNEY SHOW DOES NOT TRY TO PLACE MR KELLEY IN A PROPER ARTHISTORICAL CONTEXT THERE'S NO SOUND DISCUSSION OF OBVIOUS ANTECEDENTS DUCHAMP OR JOSEPH CORNELL INSTEAD THE CATALOG WHICH WAS COAUTHORED BY 17 CRITICS AND FRIENDS OF THE ARTIST HARPS ON HIS EXPERIENCE IN ROCK BANDS AND HIS REBELLION AGAINST HIS CATHOLIC UPBRINGING THEY MIGHT AS WELL BE TALKING ABOUT MADONNA AND YET MR KELLEY IS A PERFORMER AN ACTOR WHO CASTS HIMSELF AS A 99POUND WEAKLING AND PLAYS THE ROLE TO THE HILT JUST AS HE REVELS IN HIS UNHANDSOME APPEARANCE AND MIDDLECLASS ORIGINS HE ALSO TAKES A PERVERSE DELIGHT IN THE DOWNCAST SOILED FEEL OF HIS OBJECTS THIS IS WHY HIS BODY OF WORK IS IN THE END ULTIMATELY UNSATISFYING THERE'S A CALCULATING MANIPULATIVE EDGE TO IT MR KELLEY IS ACTING ON THE KNOWLEDGE THAT IN THE '90S ART WORLD WITH ITS REJECTION OF MAINSTREAM TRADITION AND ITS ATTRACTION TO ALL THINGS MARGINAL NOTHING SUCCEEDS LIKE FAILURE 9311090100 931109 WHO'S NEWS FRENCH GOVERNMENT TO NAME EXECUTIVES AT FINANCIAL CONCERNS PARIS THE FRENCH GOVERNMENT IS SHUFFLING EXECUTIVES AT ITS LARGEST STATEOWNED FINANCIAL INSTITUTIONS INCLUDING BANKING GIANT CREDIT LYONNAIS THE LATEST ROUND OF APPOINTMENTS DUE TO BE CONFIRMED WEDNESDAY WILL PLACE ONE OF PRIME MINISTER EDOUARD BALLADUR'S CLOSE ADVISERS JACQUES FRIEDMANN AT THE HELM OF INSURER UNION DES ASSURANCES DE PARIS BEFORE ITS PLANNED PRIVATIZATION WITHIN THE NEXT FEW MONTHS UAP'S CURRENT CHAIRMAN JEAN PEYRELEVADE WILL MOVE OVER TO CREDIT LYONNAIS TO FACE THE JOB OF CLEARING OUT A COLLECTION OF BAD LOANS AND BURDENSOME EQUITY HOLDINGS COLLECTED DURING THE BANK'S DASH FOR GROWTH IN THE PAST FEW YEARS THE MONEYLOSING BANK ISN'T EXPECTED TO BE READY FOR PRIVATIZATION FOR AT LEAST TWO YEARS MEANWHILE THE CURRENT HEAD OF CREDIT LYONNAIS JEANYVES HABERER WAS NOMINATED CHAIRMAN OF STATECONTROLLED INDUSTRIALFINANCING INSTITUTION CREDIT NATIONAL SA BY THAT BANK'S EXECUTIVE BOARD HIS MOVE TO THE MUCH SMALLER INSTITUTION IS WIDELY CONSIDERED A DEMOTION HE LED CREDIT LYONNAIS TO SHARP LOSSES SINCE HIS ARRIVAL THERE IN 1988 THE BANK LAST YEAR HAD A LOSS OF 18 BILLION FRANCS 3057 MILLION 9311090099 931109 RAWSTEEL PRODUCTION FELL 4 IN LATEST WEEK TO 1834000 TONS WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 4 LAST WEEK TO 1834000 TONS FROM 1910000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT WAS UP 81 FROM THE 1696000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 872 OF ITS CAPABILITY LAST WEEK COMPARED WITH 908 THE PREVIOUS WEEK AND 785 A YEAR EARLIER AG THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENTAGE OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9311090098 931109 CREDIT RATINGS MOODY'S LIFTS RATINGS ON HOUSEHOLD'S DEBT TOTALING 66 BILLION NEW YORK MOODY'S INVESTORS SERVICE RAISED ITS RATINGS ON ABOUT 66 BILLION IN DEBT OF HOUSEHOLD INTERNATIONAL INC A PROSPECT HEIGHTS ILL FINANCIALSERVICES CONCERN THE RATING AGENCY CITED HOUSEHOLD'S STRONGER CAPITAL AND RESERVES AS WELL AS THE EXPECTATION THAT BOTH CAPITAL AND ASSET QUALITY WILL CONTINUE TO SHOW SIGNS OF IMPROVEMENT WHILE HOUSEHOLD'S LARGE COMMERCIALLOAN PORTFOLIO WHICH IS BEING LIQUIDATED AS THE COMPANY EXITS THAT BUSINESS MAY CONTINUE TO GENERATE ACCOUNTING LOSSES AND FLUCTUATIONS IN EARNINGS MOODY'S SAID THE SHIFT IN ASSET MIX TOWARD LOWERRISK CONSUMER RECEIVABLES AND ENHANCEMENTS IN RISKMANAGEMENT TECHNIQUES SHOULD PRODUCE SIGNIFICANTLY IMPROVED CREDIT QUALITY OVER THE MEDIUM TERM THE RATING CONCERN ALSO POINTED TO HOUSEHOLD'S SUCCESS IN REALIZING OPERATING EFFICIENCIES PARTICULARLY IN ITS CREDIT CARD BUSINESS AS A DEVELOPMENT THAT WILL STRENGTHEN FUTURE EARNINGS MOODY'S RAISED THE RATINGS ON A HOST OF DEBT INSTRUMENTS ISSUED BY HOUSEHOLD AND ITS SUBSIDIARIES AMONG THEM WERE HOUSEHOLD INTERNATIONAL SENIOR DEBT RAISED TO SINGLEA3 FROM BAA1 AND THE PARENT'S PREFERRED STOCK WHICH WAS INCREASED TO BAA1 FROM BAA2 SENIOR DEBT OF THE HOUSEHOLD FINANCE CORP UNIT WAS RAISED TO SINGLEA2 FROM SINGLEA3 AND THE UNIT'S SUBORDINATED DEBT WAS RAISED TO SINGLEA3 FROM BAA1 HOUSEHOLD FINANCE'S COMMERCIAL PAPER WAS BOOSTED TO PRIME1 FROM PRIME2 9311090097 931109 LEISURE & ARTS BUSINESS BOOKSHELF SCUFFED WHITE SHOES BY ROGER PARLOFF LINCOLN CAPLAN'S TIMING WAS PERFECT IN 1988 WHEN HE APPROACHED SKADDEN ARPS SLATE MEAGHER & FLOM ABOUT WRITING A BOOK ON WHAT WAS THEN THE COUNTRY'S HIGHESTGROSSING LAW FIRM SKADDEN WAS NEARING THE APEX OF ITS PROFITABILITY POWER AND HUBRIS THE FIRM'S LEADERS AGREED TO ACCOMMODATE HIM TWO YEARS LATER THE BOTTOM FELL OUT OF SKADDEN'S LUCRATIVE MERGERS AND ACQUISITIONS SPECIALITY AND LIKE MOST LARGE US FIRMS THE COMPANY BEGAN TO LAY OFF OR EXCESS TO USE EXECUTIVE PARTNER PETER MULLEN'S ABSURD TERM BOTH ASSOCIATES AND PARTNERS BY THE TIME ITS REMAINING MEMBERS FELL TO NASTY BICKERING FINGERPOINTING AND POWERSTRUGGLING MR CAPLAN WAS ALREADY WELL INSIDE THE FIRM WRITING AWAY THE RESULT OF MR CAPLAN'S FIVE YEARS OF RESEARCH IS SKADDEN POWER MONEY AND THE RISE OF A LEGAL EMPIRE FARRAR STRAUS GIROUX 341 PAGES 25 THE BOOK IS NEITHER FLATTERING TO SKADDEN NOR AS CATASTROPHIC AS THE FIRM PROBABLY FEARED IT MIGHT BE MR CAPLAN A HARVARD LAW GRADUATE A NEW YORKER WRITER AND THE AUTHOR OF THREE ACCLAIMED NONFICTION BOOKS ABOUT LEGAL SUBJECTS HAS WRITTEN A BALANCED THOUGHTFUL PORTRAIT OF THE INNER WORKINGS OF THIS PATHBREAKING TALENTED MUCHRESENTED FIRM IF ANYTHING THE BOOK BENEFITS FROM THE HEALTHY PERSPECTIVE THAT THE RECESSION THREW ON THE FIRM'S ACCOMPLISHMENTS MANAGERIAL WEAKNESSES WERE EXPOSED BUT SO WERE STRENGTHS FOR INSTANCE THE FIRM'S FARSIGHTED DECISION IN 1985 TO EXPAND INTO TOKYO LONDON AND BEYOND GENERATED BUSINESS THAT CUSHIONED THE BLOW WHEN HARD TIMES HIT SKADDEN WAS BUILT UP BY JOE FLOM THE CONSUMMATE MERGERS AND ACQUISITIONS LAWYER WHO JOINED THE PRACTICE THREE MONTHS AFTER ITS FOUNDING IN 1948 AT ITS PEAK IN 1990 THE FIRM EMPLOYED 1133 LAWYERS NOW DOWN TO ABOUT 920 IN 1989 ITS BEST YEAR REVENUES WERE ABOUT 5175 MILLION AND THE AVERAGE PROFITSPERPARTNER ALMOST 12 MILLION AMONG ITS LEADERS MR CAPLAN WRITES WERE PEOPLE WITH SOMETHING TO PROVE JEWS CATHOLICS NONIVY LEAGUERS AND OTHERS WHO HAD BEEN SNUBBED BY MORE TRADITIONAL FIRMS INDEED THE FIRM EXCELLED IN A PRACTICE THAT WAS ITSELF ORIGINALLY SHUNNED BY OTHERS THE RAUCOUS FIELD OF PROXY BATTLES AND LATER HOSTILE TAKEOVERS AS ITS PRACTICE BECAME HUGELY LUCRATIVE OTHER FIRMS EMULATED SKADDEN AND THEREBY TRANSFORMED THE WAY AMERICAN LAW FIRMS COMPETE SERVE CLIENTS AND PERCEIVE THEMSELVES WHILE FIRMS BECAME MORE OPEN MERITOCRATIC AND RESPONSIVE TO CLIENTS THEY ALSO BECAME LESS COLLEGIAL AND MORE FOCUSED ON PROFIT SKADDEN OF COURSE LIKE EVERY LAW FIRM LIKES TO VIEW ITSELF AS A MODEL OF COLLEGIALITY THOUGH THE PICTURE MR CAPLAN PAINTS IS CLOSER TO WHAT THE FIRM'S ENEMIES HAVE ALWAYS SUSPECTED THE PRIVILEGED STATUS OF THE FIRM'S MERGERSANDACQUISITIONS ELITE BECAME UNMISTAKABLY CLEAR IN 1986 WHEN SKADDEN'S OLIGARCHICAL ADMINISTRATIVE COMMITTEE DIVVIED UP A HEFTY BONUS FUND THE PIG POOL AMONG JUST THE TOP NINE CORPORATE M&A PARTNERS WITH A BIG SCRAP THROWN TO MR MULLEN THE EXECUTIVE PARTNER MR FLOM TOOK 4 MILLION FROM THE PIG POOL OVER AND BEYOND HIS ORDINARY DRAW WHILE TOP DEAL LAWYERS PETER ATKINS AND ROGER AARON TOOK 2 MILLION EACH ONE OF THE FIRM'S BEST YEARS FINANCIALLY THUS BECAME ONE OF ITS MOST CORROSIVE INTERNALLY PREDICTABLY RIFTS DEVELOPED BETWEEN THE M&A DEPARTMENT AND THE REST OF THE FIRM WHEN THE M&A MARKET CRASHED MR CAPLAN REPORTS SOME OF THE NONM&A PARTNERS COULD BARELY CONTAIN THEIR GLEE DESPITE THE OBVIOUS HARDSHIPS THAT LAY AHEAD FOR EVERYBODY IN FACT THE SENSE OF RESENTMENT AND DISTRUST AMONG SOME SKADDEN PARTNERS WAS SO GREAT THAT WHEN ONE FACTION OF PARTNERS PROPOSED ADOPTING A DEMOCRATIC MANAGEMENT STRUCTURE IN 1991 THE OLD GUARD DEFEATED IT ON THE ASTONISHING GROUNDS AMONG OTHERS THAT DEMOCRACY MIGHT LEAD TO CORRUPTION THROUGH THE SELLING OF VOTES IN EXCHANGE FOR PROMISES OF INCREASED COMPENSATION SADLY WHILE THE BOOK IS WELLRESEARCHED AND WELLWRITTEN IT IS OFTEN ROUGH GOING MUCH OF THE MATERIAL IS DULL AND MR CAPLAN DISCOVERED NO WAY TO MAKE IT LIVELY HE HAS WRITTEN HE TELLS US AN ANTHROPOLOGY OF SKADDEN AND THAT SEEMS TO MEAN THAT HE INCLUDED MATERIAL THAT MOST JOURNALISTS WOULD DISCARD WHEN A LAWYER TELLS MR CAPLAN A LAME COARSE ANECDOTE HE RELATES IT TO CONVEY THE TYPE OF LAME COARSE ANECDOTES LAWYERS TELL ONLY A READER WHO IS TOTALLY IGNORANT OF BIGFIRM LAWYERS AND YET INSATIABLY CURIOUS ABOUT THEM WILL READ THESE PASSAGES WITH RELISH BUT MR CAPLAN'S EXTRAORDINARY OBJECTIVITY AND DETAIL ARE PUT TO GOOD USE IN COMPELLING ACCOUNTS OF WHAT ARE ORDINARILY TOP SECRET LAW FIRM RITUALS HIS DEPICTION FOR INSTANCE OF THE POLITICKING OVER THE SELECTION OF NEW PARTNERS IN 1991 IS REVEALING EVEN AFFECTING BECAUSE OF ITS FINANCIAL SITUATION THE FIRM DECIDED IT WOULD SELECT ONLY ONE OF TWO STAR M&A ASSOCIATES EACH OF WHOM HAD BEEN VIRTUALLY PROMISED PARTNERSHIP THE YEAR BEFORE THE LOSER LEFT THE FIRM AND MOVED TO DENVER AFTER READING THIS BOOK HE MAY FEEL THAT IT ALL TURNED OUT FOR THE BEST MR PARLOFF IS A SENIOR REPORTER AT AMERICAN LAWYER MAGAZINE 9311090096 931109 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS NOV 922 PART OF THE CELEBRATION OF THE CENTENNIAL OF THE OPENING OF THE ART INSTITUTE OF CHICAGO AT ITS PRESENT LOCATION THIS SHOWING OF MORE THAN 350 OF THE MUSEUM'S MOST IMPORTANT AND HISTORICALLY SIGNIFICANT WORKS INCLUDES SOME SELDOMSEEN DUE TO FRAGILITY AND LIGHT SENSITIVITY AS WELL AS FAMILIAR TREASURES PLACED IN UNFAMILIAR HISTORICAL SETTINGS INCLUDED IS AN INSTALLATION OF PIECES FROM THE MUSEUM'S EARLY YEARS ENTITLED THE ORIGINAL MUSEUM PALACE ON THE PRAIRIE A SECTION ON DONORS WHO'VE HELPED BUILD THE MUSEUM'S COLLECTION OVER THE PAST 100 YEARS AND A SECTION DEVOTED TO THE INSTITUTE'S MOST FAMOUS WORK GEORGES SEURAT'S A SUNDAY ON LA GRANDE JATTE1884 TO CREATE THIS EXHIBIT FOCUSING ON DESIGN EXCELLENCE IN EVERYDAY LIFE 63 ARCHITECTS DESIGNERS AND OTHER OPINION LEADERS WERE INVITED TO SELECT AN OBJECT JULIA CHILD NOMINATED HER CASTIRON VIKING KITCHEN SCALE FOR ITS BEAUTY AND UTILITY SCULPTOR/DESIGNER MICHELE OKA DONER CHOSE AERODYNAMIC TWEEZERS BECAUSE AS SHE SAYS THEY SUGGEST A REFINEMENT OF ACTIVITY BEYOND THE CAPACITY OF OUR OWN COARSER DIGITS THIS DISPLAY CHALLENGES VISITORS TO THE SMITHSONIAN INSTITUTION'S INTERNATIONAL GALLERY TO QUESTION THE WAY THEY SEE THE WORLD AND THEIR PLACE IN IT MORE THAN 200 HISTORICAL AND CONTEMPORARY EXAMPLES ARE HERE RANGING FROM A 1500 BC MESOPOTAMIAN CLAY TABLET TO A 30FOOT 18THCENTURY SCROLL MAP OF THE COAST OF CHINA TO WOODEN MEMORY MAPS FROM CENTRAL AFRICA CONTEMPORARY SELECTIONS INCLUDE A SUPERCOMPUTER MAP OF THE OZONE HOLE OVER ANTARCTICA A CHART SHOWING NUTRIENT POLLUTION IN THE CHESAPEAKE BAY WATERSHED AND ONE DEPICTING CHANGES IN TROPICAL FORESTS RUSALKA THE FIRST OPERA BY DVORAK EVER PERFORMED AT THE MET PREMIERES NOV 11 IN A PRODUCTION ORIGINALLY CREATED FOR THE VIENNA STATE OPERA JOHN FIORE WILL CONDUCT THE PRODUCTION IS BY OTTO SCHENK AND SETS ARE BY GUNTHER SCHNEIDERSIEMSSEN GABRIELA BENACKOVA JANIS MARTIN DOLORA ZAJICK NEIL ROSENSHEIN AND SERGEI KOPTCHAK WILL SING THIS ADULT FAIRY TALE ABOUT A WATER SPRITE THAT HAS BECOME THE CZECH NATIONAL OPERA LINCOLN CENTER 66TH STREET AND BROADWAY ALSO NOV 18 22 26 AND 29 DEC 3 8 AND 11 212 3626000 FOLLOWING RECENT PRESENTATIONS OF TWO PUCCINI CLASSICS MADAMA BUTTERFLY AND TOSCA THE COMPANY OPENS ITS 19TH SEASON AND NEWLY RENOVATED OPERA HOUSE ON NOV 19 WITH TURANDOT SOPRANO AUDREY STOTTLER IS THE ICY CHINESE PRINCESS WITH CANADIAN TENOR LOUIS LANGELIER AS HER HERO CALAF ALBERT TAKAZAUCKAS DIRECTS PETER MARK CONDUCTS HARRISON OPERA HOUSE 160 VIRGINIA BEACH BLVD ALSO NOV 21 24 26 AND 28 IN NORFOLK DEC 2 AND 4 AT GEORGE MASON UNIVERSITY IN FAIRFAX AND DEC 8 AND 10 IN RICHMOND AT THE CARPENTER CENTER ITALIAN MEZZOSOPRANO CECILIA BARTOLI SINGS ROSINA IN THE COMPANY'S SEASON OPENER ROSSINI'S THE BARBER OF SEVILLE ARGENTINIAN TENOR RAUL GIMENEZ IS COUNT ALMAVIVA BARITONE GINO QUILICO IS FIGARO THE PRODUCTION FROM THE LYRIC OPERA OF CHICAGO IS CONDUCTED BY RICHARD BONYNGE AND DIRECTED BY JOHN COPLEY MUSIC HALL AT FAIR PARK NOV 10 AND 13 214 4431000 9311090095 931109 MARKETING & MEDIA BIDS FOR MACMILLAN ARE DUE TODAY WITH PARAMOUNT MOST LIKELY THE WINNER BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER TWO YEARS IN LIMBO THE MOST DESIRABLE PIECE OF ROBERT MAXWELL'S PUBLISHING EMPIRE MACMILLAN INC WILL FINALLY BE SOLD SEALED BIDS FOR THE BOOK PUBLISHER ARE DUE TODAY AT 5 PM EST IN AN AUCTION BEING CONDUCTED BY JP MORGAN & CO WHICH IS HANDLING THE SALE FOR US BANKRUPTCY COURT INSIDERS SAY THAT BIDS IN THE 500 MILLION RANGE ARE EXPECTED FROM FOUR LARGE PUBLISHING COMPANIES WHITTLED DOWN FROM A FIELD OF NEARLY 40 POTENTIAL BIDDERS LAST SPRING AMONG THOSE LEFT PARAMOUNT COMMUNICATIONS INC IS CITED BY MANY AS THE MOST LIKELY WINNER THE OTHER THREE LIKELY BIDDERS ARE BOSTONBASED HARCOURT GENERAL INC BRITISH PUBLISHER PEARSON PLC AND KIII COMMUNICATIONS CORP MR MAXWELL WHO FELL FROM HIS YACHT TO HIS DEATH TWO YEARS AGO PAID 26 BILLION IN 1988 FOR MACMILLAN A PRICE VIEWED AS OUTRAGEOUSLY OVERINFLATED AT THE TIME ALTHOUGH THE DEBT HE TOOK ON FOR THAT AND OTHER ACQUISITIONS HELPED TOPPLE HIS EMPIRE MACMILLAN IS REGARDED AS ONE OF HIS BEST ASSETS AND IS IN RELATIVELY GOOD SHAPE NOW MACMILLAN IS EXPECTED TO RACK UP REVENUE OF ABOUT 300 MILLION FOR THE FISCAL YEAR ENDING IN MARCH WITH PRETAX PROFIT OF ABOUT 25 MILLION PARAMOUNT WHICH IS THE OBJECT OF A FIERCE TAKEOVER BATTLE BETWEEN VIACOM INC AND QVC NETWORK INC HAS REFUSED TO COMMENT ON MACMILLAN BUT PUBLISHING EXECUTIVES SAY RICHARD SNYDER HEAD OF PUBLISHING AT PARAMOUNT IS PASSIONATE ABOUT ADDING MACMILLAN TO WHAT IS ALREADY THE LARGEST PUBLISHING BUSINESS IN THE COUNTRY MACMILLAN'S HIGHLY PROFITABLE COLLEGE TEXTBOOK DIVISION RANKED SEVENTH IN SIZE IN THE US WOULD BE FOLDED INTO PARAMOUNT'S THE COUNTRY'S LARGEST AND MACMILLAN'S CONSUMER PUBLISHING IS ESPECIALLY STRONG IN CHILDREN'S BOOKS WHERE PARAMOUNT ISN'T A TOP PLAYER PARAMOUNT HAS THE MOST SYNERGY MEANING THEY COULD AFFORD TO FIRE THE MOST PEOPLE SAYS ONE MACMILLAN EDITOR BECAUSE THE TWO PUBLISHERS HAVE MANY OF THE SAME FUNCTIONS AND DEPARTMENTS HE PREDICTED IF PARAMOUNT WINS THEY'LL GO THROUGH THIS PLACE LIKE GENERAL SHERMAN THROUGH ATLANTA INSIDE MACMILLAN EMPLOYEES ARE OPENLY ROOTING FOR KIII COMMUNICATIONS TO WIN KIII IS RUN BY MACMILLAN'S MUCHLOVED FORMER TOP EXECUTIVE WILLIAM REILLY WHO TOOK SEVERAL OTHER TOP MACMILLAN EXECUTIVES WITH HIM FURTHERMORE KIII WHICH WAS FINANCED BY INVESTMENT BANKERS KOHLBERG KRAVIS ROBERTS IS PRIMARILY A PUBLISHER OF MAGAZINES AND WOULD BE EXPECTED TO KEEP THE MACMILLAN STAFF WAREHOUSE AND SO FORTH INTACT AS FOR THE TWO OTHER EXPECTED BIDDERS PEARSON COULD USE THE ACQUISITION TO EXPAND VASTLY ITS PRESENCE IN THE US WHERE IT ALREADY OWNS PENGUIN USA AND COLLEGE PUBLISHER ADDISONWESLEY HARCOURT GENERAL WHICH HAS BEEN VERY HAPPY WITH ITS ACQUISITION OF TEXTBOOK PUBLISHER HARCOURT BRACE IS SAID TO BE MORE INTERESTED IN THE COLLEGE TEXTBOOK SIDE OF MACMILLAN WHOEVER ACQUIRES MACMILLAN WILL BE BUYING A RICH BACKLIST OF AUTHORS SUCH AS ERNEST HEMINGWAY AND F SCOTT FITZGERALD AT THE MOMENT MACMILLAN HAS THE NO 1 PAPERBACK BESTSELLER IN THE COUNTRY IN ITS MOVIE TIEIN EDITION OF EDITH WHARTON'S THE AGE OF INNOCENCE A MILLION COPIES OF THE NEW EDITION ARE CURRENTLY IN PRINT MOREOVER PROVING THAT IT HASN'T BEEN HIBERNATING SINCE MR MAXWELL'S DEATH THE PUBLISHER HAD AN IMPRESSIVE THREE BOOKS NOMINATED FOR THIS YEAR'S NATIONAL BOOK AWARDS WINNERS WILL BE ANNOUNCED LATER THIS MONTH TWO WORKS OF FICTION AND ONE NONFICTION BOOK 9311090094 931109 LETTERS TO THE EDITOR WARY OF VIETNAM THANKS FOR RUNNING ARTICLES ON VARIOUS US CORPORATIONS' STEPS TOWARD DOING BUSINESS WITH VIETNAM EG LEHMAN BROS TO HELP HANOI FIX UP AIRPORT OCT 6 HOWEVER I DOUBT THAT IT IS ONLY SOME POLITICIANS AND VETERANS' GROUPS THAT OPPOSE SUCH BUSINESS MAYBE SOME OF THESE US EXECUTIVES SHOULD TAKE SOME TIME OUT TO VISIT A LOCAL VA HOSPITAL OR THE VIETNAM VETERANS MEMORIAL TO GET BACK IN TOUCH WITH THE REALITY THAT MANY AMERICANS ARE PROFOUNDLY TROUBLED BY SUCH BUSINESS AND NOT MERELY BECAUSE OF THE POW/MIA ISSUE JUST HOW DESIRABLE IS THIS BUSINESS FOR THESE US CORPORATIONS IF THEIR US CUSTOMERS AND BUSINESS PARTNERS RETALIATE ALBEIT SILENTLY AND IF VIETNAM'S REFORMED GOVERNMENT PROVES AS INCLINED AT BREAKING ITS WORD AS ITS PREDECESSORS WERE 9311090093 931109 HERSHEY IS FUNDING PROGRAM TO PROVIDE EYE CARE TO NEEDY DR MORRISON SEES AN ANSWER TO PROBLEM IN 1 EYEGLASSES AND BUSES TO MAKE THEM BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RICHARD A ZIMMERMAN CHAIRMAN OF HERSHEY FOODS CORP IS SCHEDULED TO PRESIDE OVER A NEWS CONFERENCE TODAY TO SHOW OFF HIS 1 EYEGLASSES THE INEXPENSIVE EYE WEAR MR ZIMMERMAN BELIEVES IS THE ANSWER TO PROVIDING AFFORDABLE GLASSES TO MILLIONS OF THE NEEDY WHO SELDOM IF EVER HAVE THEIR EYES EXAMINED THE HERSHEY FOODS EXECUTIVE WAS FITTED FOR THE PRESCRIPTION GLASSES BY ROBERT MORRISON A CELEBRITY OPTOMETRIST WHO BETWEEN OFFICE VISITS WITH THE LIKES OF PRINCE ALBERT OF MONACO AND BILL COSBY HAS DEVELOPED A SYSTEM THAT IN MINUTES MEASURES VISION AND CREATES GLASSES THAT COST ABOUT 1 DR MORRISON HOPES TO SELL BUSES OUTFITTED WITH HIS MORRSIGHT SYSTEM TO COUNTRIES INCLUDING THE US WHICH WANT TO PROVIDE EYE CARE AND GLASSES TO THE POOR DR MORRISON APPROACHED HERSHEY FOODS WITH THE IDEA OF BUYING A BUS TO DONATE FOR USE IN AFRICA WHERE THE COMPANY GETS ITS COCOA SUPPLIES BUT THE COMPANY DECIDED TO TRY THE SYSTEM OUT IN THE US MR ZIMMERMAN SAID THE BUS WILL TRAVEL THE US AND DELIVER EYE CARE AND THE GLASSES FREE OF CHARGE TO THE NEEDY HERSHEY IS PROVIDING 500000 IN FUNDING FOR THE 18MONTH PROJECT THE GLASSES ARE NOTHING FANCY PATIENTS HAVE A CHOICE OF TWO STYLES AND THREE COLORS BOTH THE LENSES AND FRAMES ARE MADE OF PLASTIC OF A QUALITY USUALLY FOUND IN DRUGSTORE SUNGLASSES DR MORRISON CLAIMS THEY'RE AS STURDY AS DESIGNER EYEGLASSES BUT THEY CAN BE ADJUSTED TO FIT ANY FACE SHAPE OR SIZE AND THE LENSES CORRECT ALL BUT THE WORST VISION DR MORRISON SAID THE GLASSES ARE INEXPENSIVE BECAUSE THE FRAMES WERE DESIGNED TO BE SNAPPED TOGETHER AND ADJUSTED AS NECESSARY TO FIT A FACE THE LENSES COME IN ONE SHAPE ROUND AND SNAP INTO THE FRAME THE BUS CARRIES 147 DIFFERENT TYPES OF LENSES USING 300000 OF HIS OWN FUNDS AND LATER 1 MILLION RAISED FROM INVESTORS IN HIS COMPANY MORRISON INTERNATIONAL DR MORRISON CREATED THE OPTICAL LABONWHEELS THE BUS CONTAINS EQUIPMENT THAT USES INFRARED LIGHT TO MEASURE A PERSON'S VISION STANDARD EQUIPMENT TO DOUBLECHECK THE RESULT AND A FACILITY TO INSTANTLY MAKE THE GLASSES THE ENTIRE PROCESS TAKES JUST MINUTES DR MORRISON SAID THE SYSTEM DOESN'T REQUIRE A DOCTOR WHICH WILL BE IMPORTANT IN FOREIGN COUNTRIES BUT IN THE US AN OPTOMETRIST OR OPHTHALMOLOGIST MUST BE ON BOARD TO SIGN A PRESCRIPTION DR MORRISON SAID WORLD HEATH ORGANIZATION STATISTICS INDICATE THAT MORE THAN ONE BILLION PEOPLE HAVE NEVER HAD THEIR EYES EXAMINED AND 500 MILLION TO 600 MILLION OF THEM NEED A PAIR OF GLASSES BUT MANY COUNTRIES CAN'T AFFORD OR DON'T HAVE THE PHYSICIANS AND EQUIPMENT TO CONDUCT THE EYE EXAMS AND THEY CAN'T AFFORD THE COST OF REGULAR EYEGLASSES IN A TEST RUN LAST MONTH IN PERRY COUNTY PA ONE OF THE STATE'S POOREST AREAS HUNDREDS OF PEOPLE WENT THROUGH THE BUS EACH DAY DR MORRISON SAID AND ABOUT 1000 PEOPLE LEFT WITH PRESCRIPTION GLASSES SOME OLDER PEOPLE SAID THEY HADN'T READ IN 10 YEARS BECAUSE OF POOR VISION DR MORRISON SAID THE FIRST DAY HE WORKED ON THE BUS DR MORRISON SAID HE ALSO PICKED UP FOUR CASES OF UNTREATED GLAUCOMA WHICH HE REFERRED TO LOCAL PHYSICIANS HERSHEY IS CONFIDENT THE SYSTEM WORKS BECAUSE SEVERAL EXECUTIVES WENT THROUGH FITTINGS MR ZIMMERMAN SAID I HAVE A PAIR I'VE DRIVEN WITH THEM AND THEY WORK AS WELL AS NORMAL GLASSES HE TESTIFIED ALTHOUGH HE INDICATES HE ISN'T FOND OF THE STYLING 9311090092 931109 TECHNOLOGY MID ATLANTIC MEDICAL HALTS ITS MARKETING OF PLAN TO GROUP ROCKVILLE MD MID ATLANTIC MEDICAL SERVICES INC TEMPORARILY HALTED MARKETING OF ONE OF ITS HEALTH MAINTENANCE ORGANIZATION PLANS TO MARYLAND MEDICAID PATIENTS LATE LAST MONTH AFTER STATE OFFICIALS RECEIVED COMPLAINTS THAT THE HMO DIDN'T HAVE ENOUGH PHYSICIANS TO TREAT THOSE PATIENTS MID ATLANTIC MEDICAL OFFICIALS SAID THEY VOLUNTARILY AGREED TO STOP MARKETING TO MEDICAID PATIENTS THEIR OPTIMUM CHOICE HMO PLAN ON OCT 22 AT THE REQUEST OF THE MARYLAND DEPARTMENT OF HEALTH AND MENTAL HYGIENE THE MARYLAND AGENCY ALSO SAID IT WAS DELAYING A 16 MILLION MONTHLY PAYMENT TO THE COMPANY DUE THE FIRST WEEK OF NOVEMBER PENDING RESOLUTION OF THE PROBLEMS MEDICAID WHICH PROVIDES SUBSIDIZED HEALTH CARE FOR THE POOR IS A JOINT FEDERALSTATE PROGRAM THAT IS ADMINISTERED BY EACH STATE PROBLEMS DEVELOPED WHEN PATIENTS ENROLLED IN THE MID ATLANTIC MEDICAL HMO THOUGHT THEY COULD CONTINUE TO SEE THE SAME PHYSICIANS THEY HAD SEEN PRIOR TO ENROLLMENT WHICH WAS NOT ALWAYS THE CASE THE COMPANY SAID MOST OF THE PROBLEMS REPORTED TO THE STATE CENTERED ON MENTALHEALTH SERVICES IN RURAL AREAS AND IT ESTIMATED THE COMPANY ALREADY HAS ENOUGH PARTICIPATING PHYSICIANS TO COVER 85 TO 90 OF ITS PATIENT POPULATION THE SITUATION AT MID ATLANTIC MEDICAL WAS REPORTED SATURDAY BY THE BALTIMORE SUN AN OFFICIAL AT MID ATLANTIC SAID THE COMPANY EXPECTS TO RESOLVE THE DISPUTE SOON AND TO RESUME MARKETING OF THE OPTIMUM CHOICE PROGRAM TO MEDICAID RECIPIENTS OPTIMUM CHOICE HAS ABOUT 150000 MEMBERS OF WHICH ONLY ABOUT 7500 ARE MEDICAID RECIPIENTS MID ATLANTIC MEDICAL OPERATES A NUMBER OF OTHER HMO AND MANAGED CARE PROGRAMS ALTOGETHER COVERING ABOUT 950000 PEOPLE THE STATE OF MARYLAND PAYS A PREMIUM TO OPTIMUM CHOICE FOR EACH MEDICAID RECIPIENT WHO ENROLLS IN THE PLAN TRANSFERRING THE RISK OF THEIR MEDICAL CARE COSTS TO OPTIMUM CHOICE 9311090091 931109 INTERNATIONAL THREE JAPANESE FIRMS TO DROP JOINT PLANS TO SET UP OIL REFINING SPECIAL TO THE WALL STREET JOURNAL TOKYO THREE JAPANESE COMPANIES LED BY NIPPON OIL CO ANNOUNCED THEY WILL ABANDON A PLAN TO SET UP OIL REFINING FACILITIES JOINTLY WITH THE STATERUN SAUDI ARABIAN OIL CO ARAMCO BECAUSE OF THE WEAK JAPANESE ECONOMY AND THE FALL IN DEMAND FOR OIL IN ADDITION TO NIPPON NIKKO KYODO CO ARABIAN OIL CO AND THE NISSA PETROLEUM PROJECT CO SAID IN A NEWS RELEASE THAT THEY HAVE AGREED WITH ARAMCO TO END THE PROJECT THE PARTNERS ALSO INCLUDING US OIL FIRM CALTEX PETROLEUM CORP HAD ANNOUNCED IN 1991 THAT THEY PLANNED TO SET UP THREE OIL REFINERIES IN JAPAN WITH A CAPACITY OF 450000 BARRELS A DAY AND A 300000 BARRELS A DAY FACILITY IN SAUDI ARABIA 9311090090 931109 FINANCING BY BANKAMERICA UNITS HONG KONG BANKAMERICA CORP SAID TWO UNITS BA SECURITIES INC AND BA ASIA LTD WILL ARRANGE PROJECT FINANCINGS FOR TWO GEOTHERMAL POWER PLANTS TO BE BUILT IN THE PHILIPPINES BY CALIFORNIA ENERGY AN AMERICAN GEOTHERMAL POWER DEVELOPMENT COMPANY THE TWO PROJECTS ONE COSTING ABOUT 300 MILLION AND ANOTHER COSTING ABOUT 200 MILLION WILL HAVE A COMBINED BASELOAD CAPACITY OF 300 MEGAWATTS THE OUTPUT WILL HELP TO ALLEVIATE CHRONIC POWER SHORTAGES ON THE PHILIPPINE ISLANDS OF LUZON AND CEBU BA SECURITIES INC IS BANKAMERICA'S REGISTERED BROKERDEALER SUBSIDIARY BA ASIA LIMITED IS THE PARENT COMPANY'S HONG KONGBASED MERCHANT BANK 9311090089 931109 VITAL STATISTIC DISPUTED COST OF CREATING A DRUG BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL THE PHARMACEUTICAL INDUSTRY AND ITS CRITICS ARE CLASHING OVER A STATISTIC WITH BIG IMPLICATIONS FOR HEALTHCARE REFORM HOW MUCH IT REALLY COSTS TO BRING A NEW DRUG TO MARKET FIVE YEARS AGO THIS NUMBERCRUNCHING DEBATE MATTERED MOSTLY TO A FEW ECONOMISTS LATELY THOUGH POLITICIANS CONSUMER GROUPS AND DRUGINDUSTRY OFFICIALS HAVE JOINED THE ARGUMENT ABOUT DRUG INDUSTRY RESEARCH AND DEVELOPMENT COSTS THAT'S BECAUSE R&D CALCULATIONS PLAY A POWERFUL ROLE IN SHAPING VIEWS ABOUT WHETHER DRUG PRICES SHOULD BE CONTROLLED THE BIGGEST NEWDRUG COST ESTIMATES COME FROM THE PHARMACEUTICAL INDUSTRY LEIGH THOMPSON CHIEF SCIENTIFIC OFFICER AT ELI LILLY & CO OBSERVES THAT THE INDUSTRY SPENT 125 BILLION LAST YEAR ON R&D AND GOT 26 NEW MOLECULAR ENTITIES APPROVED BY THE FOOD & DRUG ADMINISTRATION ON THAT BASIS HE ESTIMATES THAT EACH NEW DRUG COSTS ABOUT 500 MILLION BEFORE TAXES TO DEVELOP DR THOMPSON FEARS THAT RESEARCH FUNDING COULD BE HURT BY PARTS OF THE WHITE HOUSE HEALTHREFORM PACKAGE THAT WOULD REQUIRE SIZABLE DRUGPRICE REBATES FOR THE ELDERLY WHILE INITIATING FEDERAL PRICE REVIEW OF COSTLY NEW DRUGS SHARING THAT CONCERN L PATRICK GAGE EXECUTIVE VICE PRESIDENT OF GENETICS INSTITUTE INC SAYS THAT IF COMPANIES ARE ALLOWED ONLY TO RECOVER THE COSTS ON SUCCESSFUL DRUGS THEY WILL GO OUT OF BUSINESS SUCH CONCERNS DON'T PLAY WELL WITH SEN DAVID PRYOR THE ARKANSAS DEMOCRAT LONGTIME BANE OF THE DRUG INDUSTRY SAYS HE HAS SEEN ESTIMATES OF DRUGDEVELOPMENT COSTS THAT RUN AS LOW AS 129 MILLION TO 169 MILLION AFTER TAXES AND HE CONTENDS THAT MUCH OF THE PRICE OF BRINGING NEW DRUGS TO MARKET IS COVERED BY TAX SUBSIDIES AND GOVERNMENTFUNDED LABS DRUG COMPANIES INVOKE HIGH R&D COSTS AS THE STANDARD DEFENSE AGAINST PRICE CONTROLS SEN PRYOR ASSERTS BUT THE FACTS JUST DON'T BEAR THEM OUT HE CONTENDS THAT THE KINDS OF PRICE REVIEW AND REBATES ENVISIONED IN THE CLINTON HEALTH PLAN WOULDN'T HURT DRUG INDUSTRY RESEARCH AT ALL A VIEW ECHOED BY CONSUMERS UNION AND OTHER CONSUMER GROUPS THE MAIN EFFORT TO RECONCILE THESE WARRING CAMPS IS A 354PAGE STUDY PUBLISHED LAST SPRING THAT CONGRESS HAD COMMISSIONED FROM THE OFFICE OF TECHNOLOGY ASSESSMENT THAT REPORT USED ECONOMISTS' STUDIES THAT TRACK SPECIFIC DRUGS ALL THE WAY THROUGH THE DEVELOPMENT PIPELINE THE OTA THUS PEGGED THE COST OF DEVELOPING A NEW DRUG AT 194 MILLION AFTER TAXES IN 1990 DOLLARS OR 359 MILLION BEFORE TAXES WHILE BOTH SIDES GENERALLY PRAISE THE OTA'S WORK ITS ATTEMPT TO BUILD CONSENSUS ABOUT COSTS HASN'T MADE MUCH HEADWAY SEVERAL DRUG COMPANIES SAY THEY REGARD THE 359 MILLION PRETAX FIGURE AS A LOWEND ESTIMATE OF COSTS THAT INCREASE RAPIDLY EACH YEAR CONSUMER GROUPS MEANWHILE REGARD THE 194 MILLION AFTERTAX FIGURE AS MORE APPROPRIATE ADDING THAT IT MIGHT BE ON THE HIGH SIDE WITHIN THE DRUG INDUSTRY EXECUTIVES CITE PLENTY OF REASONS WHY R&D COSTS ARE SO HIGH THE TRADE GROUP FOR LARGE US DRUG COMPANIES THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION CALCULATES THAT ITS MEMBERS IN 1991 SPENT 776 MILLION ON SYNTHESIZING NEW COMPOUNDS 15 BILLION ON BIOLOGICAL SCREENING AND TESTING OF THOSE COMPOUNDS AND 21 BILLION ON HUMAN TESTING OF THOSE POTENTIAL NEW DRUGS WE AREN'T JUST TALKING ABOUT A COUPLE OF SCIENTISTS WITH BEAKERS IN ONE ROOM SAYS MERCK & CO'S CHIEF FINANCIAL OFFICER JUDY LEWENT WHEN YOU WALK THROUGH ONE OF OUR LABS YOU UNDERSTAND THE DEPTH OF CAPITAL IN THIS INDUSTRY MERCK RECENTLY SPENT 61 MILLION TO SET UP A RESEARCH FACILITY IN MONTREAL THAT HOUSES ABOUT 250 SCIENTISTS AT SUCH SITES MS LEWENT SAYS TRADITIONAL TOOLS SUCH AS 40000 MICROSCOPES ARE BEING REPLACED WITH NUCLEAR MAGNETIC RESONANCE SPECTROMETERS THAT MAY COST 10 TIMES AS MUCH DURING THE MIDDLE STAGES OF DRUG R&D WHEN POTENTIAL NEW MEDICINES ARE TESTED ON ANIMALS COSTS TAPER OFF ACCORDING TO MOST STUDIES EVEN THERE HOWEVER SOME OUTLAYS ARE CLIMBING THE JACKSON LABORATORY IN BAR HARBOR MAINE SAYS IT SELLS BASIC RESEARCH MICE FOR 7 EACH BUT INCREASINGLY GETS ORDERS FOR SPECIAL MICE WITH SAY PRESELECTED MUTATIONS THESE CAN COST 60 OR MORE APIECE COSTS SURGE AT THE FINAL STAGE OF DRUG R&D KNOWN AS PHASE III TRIALS WHEN NEW COMPOUNDS ARE TESTED ON 1000 OR MORE PATIENTS FOR SAFETY AND EFFICACY TUFTS UNIVERSITY ECONOMIST JOSEPH DIMASI ESTIMATED IN A 1991 PAPER THAT A TYPICAL PHASE III TRIAL COSTS 128 MILLION HE EXPECTS THAT FIGURE HAS GROWN SINCE THEN IN ONE OF THE BIGGEST HUMAN TRIALS EVER GENENTECH INC RECENTLY SPENT 55 MILLION TO TEST ONE OF ITS HEART DRUGS ON MORE THAN 40000 PATIENTS IN 15 COUNTRIES BUT DRUG COMPANIES SAY THAT EVEN THEIR LESSAMBITIOUS TRIALS CARRY BIG PRICE TAGS LILLY REPORTS SPENDING 2000 PER PATIENT FOR TWOWEEK TESTS OF NEW ANTIBIOTICS WE'RE SEEING WHAT I CALL REGULATORY CREEP SAYS LILLY'S DR THOMPSON EACH TIME THAT LILLY PROPOSES A NEW DRUG TRIAL HE SAYS FEDERAL REGULATORS ASK FOR A LITTLE MORE DATA TO BE COLLECTED ON A SLIGHTLY LARGER GROUP OF PATIENTS WHILE DR THOMPSON SAYS EACH SPECIFIC REQUEST IS JUSTIFIABLE HE ADDS IT'S ODD THAT ONE ARM OF THE GOVERNMENT IS COMPLAINING ABOUT THE PRICES THAT ANOTHER ARM OF THE GOVERNMENT IS CREATING ALL THESE COSTS ADD UP SKEPTICS SAYBUT THEY MAY NOT ADD UP TO AS MUCH AS THE DRUG INDUSTRY CLAIMS BURIED IN THE INDUSTRY COST ESTIMATES IS A LOT OF WASTE CONTENDS SIDNEY WOLFE HEAD OF THE RALPH NADERAFFILIATED PUBLIC CITIZEN HEALTH RESEARCH GROUP AND A FREQUENT CRITIC OF THE DRUG INDUSTRY A RECENT SURVEY BY ERNST & YOUNG FOUND THAT SMALL BIOTECHNOLOGY COMPANIES EXPECT TO SPEND JUST 125 MILLION TO BRING EACH NEW DRUG TO MARKET DR WOLFE CONTENDS THAT SUCH FIGURES SHOW WHAT A LEAN EFFICIENT RESEARCH ORGANIZATION NEEDS TO SPEND TO GET A DRUG TO MARKET OTHER ANALYSTS SAY IT'S UNFAIR AFTER THE FACT TO TRY TO IDENTIFY WASTEFUL SPENDING PHARMACEUTICAL RESEARCH IS LITTERED WITH DEADEND PROJECTS THAT DON'T PRODUCE VIABLE DRUGS BUT SUCH MISSTEPS MAY BE INEVITABLE SAYS JUDITH WAGNER DIRECTOR OF THE OTA'S STUDY OUR ASSUMPTION WAS THAT DRUG COMPANIES DON'T THROW MONEY DOWN A SINKHOLE PURPOSEFULLY SHE SAYS A BIGGER AREA OF DISPUTE INVOLVES THE RIGHT WAY TO ADJUST RAW DATA TO ACKNOWLEDGE THAT MOST R&D SPENDING OCCURS YEARS BEFORE PRODUCTS COME TO MARKET MOST RESEARCHERS AGREE THAT ACTUAL R&D OUTLAYS SHOULD BE MULTIPLIED BY SOME FACTOR TO REFLECT THE COST OF CAPITAL AND THE TIME VALUE OF MONEY BUT ECONOMISTS DISAGREE ABOUT WHAT RATE TO USE THE OTA IN ITS STUDY OPTED FOR A RELATIVELY BIG ADJUSTMENT 14 A YEAR FOR EARLY RESEARCH SCALING DOWN TO 10 A YEAR FOR LATE STAGE DEVELOPMENT DRUGINDUSTRY OFFICIALS SAY THOSE RATES CLOSELY MATCH WHAT THEY USE FOR INTERNAL FINANCING CALCULATIONS BUT INDUSTRY CRITICS SAY THE ADJUSTMENTS MAY BE TOO GENEROUS THEY NOTE THAT ACTUAL CASH COSTS TOTALED JUST 127 MILLION PER SUCCESSFUL DRUG AND THAT COSTOFCAPITAL ADJUSTMENTS NEARLY TRIPLED THAT AMOUNT ON A PRETAX BASIS TO 359 MILLION FINALLY ANALYSTS DIFFER ON WHETHER TO FOCUS ON PRETAX OR AFTERTAX ESTIMATES OF DRUG INDUSTRY R&D WE GENERALLY DO USE THE BEFORETAX 359 MILLION NUMBER CITED IN THE OTA STUDY SAYS GARY PERSINGER AN ECONOMIST AT THE PMA THE DRUG INDUSTRY TRADE GRA ITSELF SEES THINGS DIFFERENTLY I'D DEFINITELY TURN TO THE AFTERTAX NUMBER SAYS THE OTA'S MS WAGNER INVESTORS CARE ABOUT THE POSTTAX RATE OF RETURN SHE OBSERVES THAT FIGURE AMOUNTS TO AN APPRECIABLY SMALLER 194 MILLION SHE OBSERVES BECAUSE R&D COSTS ARE TAXDEDUCTIBLE FOR DRUG COMPANIES 9311090088 931109 BUSINESS BRIEF ALAMO GROUP INC AGREEMENT IS SET TO ACQUIRE SUBSIDIARY OF ELSWICK PLC ALAMO GROUP INC SEQUIN TEXAS SAID IT AGREED TO ACQUIRE BOMFORD TURNER LTD AND THE ASSETS AND BUSINESS OF ITS US OPERATIONS FROM ELSWICK PLC A HOLDING COMPANY BASED IN WARWICKSHIRE ENGLAND FOR 52 MILLION 77 MILLION IN CASH AND 25 MILLION IN NOTES ALAMO A MAKER OF TRACTORMOUNTED MOWING AND GROUNDMAINTENANCE EQUIPMENT SAID BOMFORD TURNER MAKES TRACTORMOUNTED GRASS AND HEDGEMOWING EQUIPMENT SIMILAR TO PRODUCTS MADE BY ALAMO AND SOME OF ITS UNITS ALAMO SAID BOMFORD HAD 1992 SALES OF ABOUT 207 MILLION AND HAS ABOUT 289 EMPLOYEES THE CLOSING IS SUBJECT TO APPROVAL BY ELSWICK SHAREHOLDERS AND CERTAIN REGULATORY AGENCIES IN THE UK THE COMPANY SAID 9311090087 931109 MARKETING & MEDIA BILL COSBY DROPS EFFORT TO FINANCE BID FOR GE'S NBC BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COMEDIAN BILL COSBY HAS DROPPED HIS EFFORT TO LINE UP FINANCING FOR A BID TO BUY NBC FROM PARENT GENERAL ELECTRIC CO AMID CONSIDERABLE INDUSTRY SKEPTICISM MR COSBY AND PARTNERS INCLUDING ROBERT WUSSLER A FORMER SENIOR EXECUTIVE AT CBS INC AND TURNER BROADCASTING SYSTEM INC BEGAN TRYING TO RAISE FINANCING FOR A BID FOR NBC LAST SPRING THEY ALSO RETAINED GOLDMAN SACHS & CO AS AN INVESTMENT ADVISER HOWEVER GENERAL ELECTRIC CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOHN F WELCH SAID YESTERDAY IN RESPONSE TO A QUESTION THAT HE HAD NEVER BEEN APPROACHED ABOUT SELLING NBC BY MR COSBY OR ANY REPRESENTATIVE HE ALSO SAID THE NETWORK IS NOT FOR SALE MR COSBY WHO STARRED IN THE NBC HIT THE COSBY SHOW LATE YESTERDAY ISSUED A STATEMENT THROUGH HIS PUBLICIST SAYING WHILE I DID HAVE INTEREST AT THE PRESENT TIME IT'S OVER IN A RECENT EPISODE OF THE ARSENIO HALL TALK SHOW MR COSBY WENT FURTHER SAYING HE WAS DROPPING HIS EFFORT TO BUY THE NETWORK BECAUSE I CANNOT GET ALL OF THE MONEY HE SAID HE FELL 600 MILLION SHORT OF HIS FUNDRAISING EFFORTS NBC HAS BEEN VALUED AT MORE THAN 4 BILLION MR WUSSLER DIDN'T RETURN CALLS SEEKING COMMENT MR WELCH SAID GE REMAINS COMMITTED TO NBC WHOSE OUTLOOK HE SAID IS IMPROVING AS THE TELEVISION BUSINESS PICKS UP AS EVIDENCE OF THE COMMITMENT MR WELCH POINTED TO PLANS FOR A NEW 15 MILLION STREETLEVEL STUDIO FOR NBC NEWS' TODAY SHOW ANNOUNCED YESTERDAY THAT WILL LET PASSERSBY WATCH LIVE BROADCASTS OF THE PROGRAM MR WELCH ADDED THAT NBC IS NOT INTERESTED IN PARTICIPATING IN THE MERGER MANIA THAT HAS HIT OTHER PARTS OF THE MEDIA BUSINESS INCLUDING CABLE AND TELEPHONE COMPANIES WE'RE MOVING OUR OWN WAY VERY NICELY HE SAID OUR JOB IS TO GET PROGRAMMING AND PUT IT ON THE AIR SEPARATELY DICK EBERSOL PRESIDENT OF NBC SPORTS HAS SIGNED A NEW CONTRACT THAT WILL KEEP HIM AT NBC FOR ANOTHER FOUR YEARS MR EBERSOL HAS BEEN RESPONSIBLE FOR SEVERAL RECENT DEALS FOR NBC SPORTS INCLUDING GROUNDBREAKING REVENUESHARING DEALS WITH THE NATIONAL BASKETBALL ASSOCIATION AND MAJOR LEAGUE BASEBALL AND WINNING THE RIGHTS TO THE 1996 SUMMER OLYMPICS IN ATLANTA 9311090086 931109 WHO'S NEWS MELVILLE CORP NAMES ROSENTHAL PRESIDENT AND OPERATING CHIEF RYE NY MELVILLE CORP SAID IT NAMED HARVEY ROSENTHAL PRESIDENT AND CHIEF OPERATING OFFICER OF THE RETAILING COMPANY MR ROSENTHAL 50 YEARS OLD HAS BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MELVILLE'S CVS DRUGSTORE CHAIN THE COMPANY'S LARGEST UNIT WITH 4 BILLION IN ANNUAL REVENUE HE ALSO IS EXPECTED TO BE NAMED A DIRECTOR AS THE COMPANY'S PRESIDENT EFFECTIVE IN JANUARY MR ROSENTHAL WILL SUCCEED MELVILLE'S CHAIRMAN AND CHIEF EXECUTIVE STANLEY P GOLDSTEIN 59 THE CHIEF OPERATING POST IS A NEW POSITION THE COMPANY SAID THE APPOINTMENT WILL CREATE A MORE FOCUSED AND CENTRALIZED MANAGEMENT STRUCTURE MR ROSENTHAL WILL SHARE SENIOR MANAGEMENT AUTHORITY WITH MR GOLDSTEIN AND ROBERT D HUTH EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MELVILLE HAS BEEN REDUCING THE NUMBER OF DIVISIONS TO 10 FROM 13 AND HAS ANNOUNCED PLANS TO CLOSE OR REVAMP AS MANY AS 800 OF ITS 8200 STORES SEPARATELY WOOLWORTH CORP SAID IT COMPLETED THE ACQUISITION OF THE 114STORE ACCESSORY LADY CHAIN OF ACCESSORY BOUTIQUES FROM MELVILLE 9311090085 931109 CYPRUS'S PURCHASE OF AMAX CLEARS ANTITRUST HURDLE BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE JUSTICE DEPARTMENT APPROVED CYPRUS MINERALS CO'S PROPOSED ACQUISITION OF AMAX INC AFTER BOTH COMPANIES AGREED TO SELL CERTAIN OPERATIONS IN ORDER TO RESOLVE FEDERAL ANTITRUST CONCERNS THE MERGER WILL CREATE THE NATION'S SECONDLARGEST PRODUCER OF COAL AND COPPER WITH 28 BILLION IN REVENUES AND 5 BILLION IN ASSETS THE JUSTICE DEPARTMENT AGREED TO THE ACQUISITION AFTER CYPRUS BASED IN ENGLEWOOD COLO AGREED TO SELL ITS PRIMARY MOLYBDENUM MINE AND NEW YORKBASED AMAX AGREED TO SELL A MOLYBDENUM ROASTING FACILITY IN LANGELOTH PA BOTH OPERATIONS WILL BE SOLD TO TONOPAH MINERAL RESOURCES LIMITED LIABILITY CORP A RECENTLY FORMED MINING AND METALS CONCERN WITHOUT THE DIVESTITURES THE MERGER WOULD HAVE CREATED THE NATION'S LARGEST MOLYBDENUM PRODUCER MOLYBDENUM IS A METAL USED IN BICYCLES AND HEATRESISTANT ALLOYS FOR SPACE AND DEFENSE INDUSTRY APPLICATIONS THIS DIVESTITURE PRESERVES COMPETITION IN MOLYBDENITE MINING SAID ANNE BINGAMAN ASSISTANT ATTORNEY GENERAL FOR ANTITRUST CONSUMERS WILL BENEFIT BECAUSE ADDITIONAL PRODUCTION CAPACITY IN BOTH MINING AND PROCESSING WILL BE BROUGHT INTO THE MARKET TERMS OF THE ACQUISITIONS OF THE TWO DIVESTED PROPERTIES BY TONOPAH WEREN'T DISCLOSED TONOPAH IS HEADED BY DENVER BUSINESSMAN F STEVEN MOONEY A FORMER PRESIDENT OF CYPRUS COPPER CO AN OPERATING UNIT OF CYPRUS MINERALS WE ARE VERY PLEASED TO HAVE GOTTEN OVER THIS HURDLE SAID A CYPRUS SPOKESMAN WHO NOTED THAT SHAREHOLDERS OF BOTH CYPRUS AND AMAX WILL VOTE ON THE PROPOSED MERGER IN SEPARATE MEETINGS FRIDAY WE ARE OPTIMISTIC THAT OUR SHAREHOLDERS WILL VIEW THE MERGER AS OPTIMISTICALLY AS WE DO HE SAID IN MAY CYPRUS AGREED TO ACQUIRE AMAX FOR 1 BILLION TO 14 BILLION IN STOCK ROBERT TOMSHO IN DALLAS CONTRIBUTED TO THIS ARTICLE 9311090084 931109 MARKETING & MEDIA MARKETSCAN DOITYOURSELF HOUSE CALLS BY KATHLEEN DEVENY AMERICANS' DESIRE TO TAKE MORE CONTROL OVER THEIR OWN HEALTH CARE ALONG WITH IMPROVING TECHNOLOGY HAS HELPED TURN SEVERAL HOME DIAGNOSTIC PRODUCTS INTO SOME OF THE FASTESTGROWING HEALTH AND BEAUTYCARE PRODUCTS TODAY DURING THE THIRD QUARTER SUPERMARKET AND DRUGSTORE SALES OF BLOODPRESSURE KITS GREW 68 FROM A YEAR EARLIER ACCORDING TO THE TOWNEOLLER UNIT OF INFORMATION RESOURCES INC SALES OF BLOODGLUCOSE METERS AND THE DISPOSABLE TEST STRIPS USED WITH THEM INCREASED 32 AND 34 RESPECTIVELY THE BLOODGLUCOSE MONITORING DEVICES ARE USED BY PEOPLE WITH DIABETES EACH QUARTER TOWNEOLLER COMPILES LISTS OF THE FASTESTGROWING AND FASTESTDECLINING HEALTH AND BEAUTYCARE PRODUCTS EXCLUSIVELY FOR THE WALL STREET JOURNAL THE ROSTERS ARE BASED ON PRODUCT SHIPMENTS RECEIVED BY 30400 SUPERMARKETS AND 12900 DRUGSTORES TOWNEOLLER RANKS 350 PRODUCT CATEGORIES WITH QUARTERLY SALES OF AT LEAST 6 MILLION BY PERCENTAGE CHANGE FROM THE YEAREARLIER PERIOD MOISTURIZING SHAMPOOS WHOSE SALES DROPPED 23 LED THE ROSTER OF FASTESTDECLINING PRODUCTS BECAUSE OF THE POPULARITY OF SHAMPOOS THAT INCLUDE A CONDITIONER QUARTERLY SALES OF CHILDREN'S SHAMPOOS AND LIQUID BABY SOAPS DECLINED 16 AND 14 RESPECTIVELY THE CATEGORIES GREW QUICKLY DURING THE PREVIOUS YEAR THANKS TO HEAVY PROMOTIONAL SPENDING FOR THE LAUNCH OF JOHNSON & JOHNSON'S BATHTIME BUDDIES LINE THE RISE OF THE NATURAL LOOK HURT SALES OF HAIRSTYLING SPRITZES AND PERMANENTWAVE KITS WHICH DECLINED 17 AND 12 RESPECTIVELY 9311090083 931109 TOP COURT RULES SEC HAS NO TIME LIMIT IN CIVIL FRAUD ACTIONS WASHINGTON THE SUPREME COURT LET STAND A LOWERCOURT RULING THAT SAID THE SECURITIES AND EXCHANGE COMMISSION DOESN'T HAVE A TIME LIMIT FOR STARTING CIVIL ENFORCEMENT ACTIONS IN FRAUD CASES THE DECISION BY THE FEDERAL APPEALS COURT IN SAN FRANCISCO CONCERNED CASES IN WHICH THE SEC SEEKS JUDICIAL ORDERS BARRING DEFENDANTS FROM CERTAIN PRACTICES AND FORCING THEM TO TURN OVER PROCEEDS OF PAST ILLEGAL ACTIVITIES IN CONTRAST TO THE SEC INDIVIDUALS FILING PRIVATE SECURITIESFRAUD LAWSUITS DO HAVE TO FOLLOW SOCALLED STATUTES OF LIMITATIONS WHICH ARE EITHER STATED EXPLICITLY IN STATUTES OR ARE ESTABLISHED BY COURTS 9311090082 931109 FORM + FUNCTION BY JOHN PIERSON SOME MAKERS OF CHILDREN'S PRODUCTS WANT TO TAKE THE KEYS AWAY FROM BABY WHETHER PARENTS WILL AGREE IS IN DISPUTE UNTIL NOW BABY WALKERS HAVE HAD WHEELS WHEELS ARE FUN BUT WHEELS CAN GET BABY INTO A HEAP OF TROUBLE THE CONSUMER PRODUCT SAFETY COMMISSION ESTIMATES THAT 27000 WALKERRELATED INJURIES TO BABIES WERE TREATED IN US HOSPITAL EMERGENCY ROOMS IN 1991 ONE MANUFACTURER FISHERPRICE HAS SIMPLY STOPPED MAKING BABY WALKERS ANOTHER THE COSCO UNIT OF DOREL INDUSTRIES HAS DESIGNED A BASE THAT GRIPS THE GROUND AND BRINGS THE WALKER TO A HALT WHENEVER A WHEEL CROSSES AN UNEVEN SURFACE A THIRD COMPANY GRACO CHILDREN'S PRODUCTS HAS A WALKER WITH A PARKING BRAKE THAT CAN LIFT ALL EIGHT WHEELS OFF THE GROUND WHY KEEP WHEELS AT ALL ASKS EVENFLO JUVENILE FURNITURE DUE OUT NEXT SPRING EVENFLO'S EXERSAUCER HAS A SEAT THAT'S SUSPENDED OVER A SAUCER BASE ON THREE LEGS AND ROTATES 360 DEGREES THE 28INCH SAUCER ALLOWS A CHILD TO ROCK BOUNCE OR STAND THREE LEGS CAN BE DROPPED TO STOP THE SAUCER ROCKING SUMMER INFANT PRODUCTS' PLAY IT SAFE EXERCISE AND ACTIVITY CENTER LETS BABY SPIN ROUND AND ROUND ON A LAZYSUSAN SEAT AND BOUNCE UP AND DOWN ON BUNGEELIKE CORDS ALSO DUE OUT IN THE SPRING IT HAS FOUR LEGS THAT FOLD UP FOR CARRYING OR STORAGE WILL PARENTS GO FOR THESE NONWALKING WALKERS PROBABLY NOT SAYS JOHN REYNOLDS EXECUTIVE VICE PRESIDENT AT COSCO HIS COMPANY'S SURE STEP WALKER WITH THE GRIPPER BOTTOM DID POORLY MR REYNOLDS BELIEVES BECAUSE IT SOLD FOR ABOUT TWICE THE 30 CHARGED FOR A STANDARD WALKER FOR ALL THE TALK ABOUT SAFETY PEOPLE STILL BUY THE TRADITIONAL WALKER BECAUSE IT'S MUCH CHEAPER HE SAYS EVENFLO EXPECTS ITS EXERSAUCER TO RETAIL FOR ABOUT 50 WHILE SUMMER SEES A PRICE OF ABOUT 70 WAY TOO EXPENSIVE FOR THE MARKET CAUTIONS MR REYNOLDS PRIMO ANGELI SAYS THE EGG CAME FIRST A SAN FRANCISCO PACKAGE DESIGNER MR ANGELI IS TURNING TRADITION ON ITS HEAD BY PERSUADING SOME OF HIS CLIENTS TO MAKE THE PACKAGE FIRST AND THE PRODUCT SECOND HE SAYS HIS RAPIDACCESS PROCESS IS QUICKER CHEAPER AND MORE PRODUCTIVE EIGHT OUT OF 10 NEW PRODUCTS FAIL IN THE MARKETPLACE SAYS MR ANGELI PRODUCTS THAT WERE DEVELOPED AHEAD OF THEIR PACKAGES THE EARLIER A MARKETER CAN DISCOVER A PACKAGE THAT HAS THE POTENTIAL FOR CAPTURING THE CONSUMER'S INTEREST THE FASTER AND MORE EFFECTIVELY HE CAN DISTILL THE ESSENTIAL INGREDIENTS NECESSARY TO DEVELOP A PRODUCT THAT WILL SELL ITSELF RIGHT OFF THE SHELF HE SAYS THE ANGELI TEAM FIRST MEETS WITH THE CLIENT TO EXPLORE IDEAL AREAS FOR NEW PRODUCTS THEN IT CREATES ALTERNATIVE PACKAGES AS WELL AS BRAND AND PRODUCT NAMES REFINING THEM AT FURTHER MEETINGS SEVERAL PACKAGES ARE TESTED WITH CONSUMERS AND THE BESTSCORING PACKAGE IS GIVEN TO THE CLIENT TO FILL WITH A PRODUCT RAPIDACCESS WAS USED TO PRODUCE A BESTSELLING COOKIE FOR JUST DESSERTS A SAN FRANCISCO BAKERY RAPIDACCESS CUTS TO THE CHASE COMPARED WITH TRADITIONAL METHODS SAYS BONNIE PORTNOY JUST DESSERTS' GENERAL MANAGER RONALD PETERSON A NEW YORK PACKAGE DESIGNER SAYS HE'S USING HIS OWN VERSION OF THE ANGELI METHOD TO HELP A CLIENT TEST 10 DIFFERENT CONCEPTS IN A WEEK BUT HE SAYS RAPIDACCESS WON'T WORK FOR PRODUCTS THAT ARE MORE COMPLEX THAN FOOD DRINK OR COSMETICS HERE'S GOOD NEWS FOR THE ABSENTMINDED A CALIFORNIA MAN HAS PRODUCED A BEVERAGE BOTTLE WITH A CAVITY IN THE BOTTOM WHERE YOU CAN PARK THE CAP TOO MANY CAPS ARE LITTERING THE LANDSCAPE SAYS PETER TAKACS A SANTA ROSA DIRECTMAIL ADVERTISER HE SAYS HIS CAP WELL BOTTLE ENSURES THAT THE CAP ALWAYS STAYS WITH THE BOTTLE FOR RESEALING RECYCLING OR A TRIP TO THE LANDFILL THE CAP GOES INTO THE WELL OPENEND FIRST WHICH PROTECTS IT FROM DIRT AND GERMS IN ADDITION MR TAKACS SAYS A STACK OF CAP WELLS IS STABLER AND TAKES UP LESS SPACE THAN A STACK OF CONVENTIONAL BOTTLES THE DESIGN WORKS FOR GLASS OR PLASTIC STILL OR CARBONATED DRINKS AND OIL CANS OR ANY OTHER CONTAINER WITH A TWISTOFF CAP HE SAYS EXPERTS ARE DIVIDED IN THEIR REACTION I'VE NEVER LOST THE TOP OF A WATER BOTTLE SAYS ARTHUR VON WIESENBERGER A BOTTLEDWATER CONSULTANT BASED IN SANTA BARBARA CALIF BUT KRISTINE KELLEY MANAGING EDITOR OF BEVERAGE INDUSTRY MAGAZINE CALLS THE CAP WELL USEFUL BECAUSE WHEN YOU'RE DRINKING YOU DON'T HAVE TO HANG ONTO THE CAP YOU ALWAYS KNOW WHERE IT IS ARTESIA WATERS SAN ANTONIO HAS A DIFFERENT SOLUTION TO THE STRAY BOTTLE CAP ARTESIA HAS BEGUN CAPPING BOTTLES OF ITS WATER WITH A PULLPUSH TOP LIKE THE ONES ON LIQUIDSOAP CONTAINERS AND BICYCLE DRINKING BOTTLES PULL THE TOP OPEN POINT IT AT YOUR MOUTH AND SQUEEZE THE TOP NEVER LEAVES THE BOTTLE 9311090081 931109 LETTERS TO THE EDITOR UNJUST CRITICISM OF A CHIEF JUSTICE THE DETAILS OF PAUL GIGOT'S ATTACK ON FLORIDA CHIEF JUSTICE ROSEMARY BARKETT POTOMAC WATCH OCT 15 SOUND ODDLY FAMILIAR A VERSION OF THESE SAME CLAIMS WAS USED LAST NOVEMBER IN AN UNSUCCESSFUL CAMPAIGN TO CONVINCE FLORIDA VOTERS TO VOTE AGAINST JUSTICE BARKETT IN THE MERIT RETENTION ELECTION THAT ALL FLORIDA JUSTICES MUST GO THROUGH EVERY SIX YEARS THIS CAMPAIGN FAILED SHE ENDED UP RECEIVING MORE VOTES FOR RETENTION THAN ANY OF THE OTHER THREE MEMBERS OF THE FLORIDA SUPREME COURT WHO WERE ALSO ON THE BALLOT UNFORTUNATELY THE ENTIRE COUNTRY APPARENTLY IS NOW GOING TO BE SUBJECTED TO THE SAME DISCREDITED ALLEGATIONS AS PART OF A SIMILAR CAMPAIGN TO KEEP HER OFF THE US COURT OF APPEALS THE MOST MISLEADING THING ABOUT THESE ALLEGATIONS IS THEIR LACK OF CONTEXT A READER WHO IS UNFAMILIAR WITH THE WORKINGS OF THE FLORIDA SUPREME COURT WOULD COME AWAY FROM READING MR GIGOT'S COLUMN WITH THE IMPRESSION THAT ROSEMARY BARKETT IS A ROGUE JUSTICE ROUTINELY FLOUTING THE LAW TO PURSUE HER OWN PERSONAL LIBERAL POLITICAL AGENDA THE FACTS ARE QUITE THE CONTRARY THE FLORIDA SUPREME COURT IS A REMARKABLY UNIFIED BODY IN A STUDY CONDUCTED DURING THE LAST JUDICIAL RETENTION CAMPAIGN SOME OF MY FORMER LAW STUDENTS AND I REVIEWED EVERY OPINION ISSUED BY THE COURT DURING CHIEF JUSTICE BARKETT'S TENURE WE FOUND THAT AN OVERWHELMING MAJORITY OF THE OPINIONS 70 WERE DECIDED UNANIMOUSLY OVERALL JUSTICE BARKETT VOTED WITH THE MAJORITY IN MORE THAN 90 OF THE COURT'S OPINIONS THE VOTING HABITS OF THE OTHER JUSTICES REFLECT ABOUT THE SAME PATTERN THE LACK OF CONTEXT IN MR GIGOT'S PORTRAYAL IS ALSO EVIDENT IN HIS CHARACTERIZATIONS OF JUSTICE BARKETT'S OPINIONS IN SPECIFIC CASES HE FAILS TO POINT OUT THAT BOTH THE FOURTH AMENDMENT DECISION HE CRITICIZES FLORIDA V BOSTICK AND THE LOITERING OPINION HE FINDS SO OUTRAGEOUS WYCHE V FLORIDA WERE JOINED BY A MAJORITY OF THE COURT WHILE HE FEIGNS OUTRAGE THAT CHIEF JUSTICE BARKETT VOTED AGAINST THE DEATH PENALTY IN TWO CASES DECIDED IN 1988 LECROY V STATE AND 1990 PORTER V STATE HE FAILS TO NOTE THAT DURING THE SEVEN YEARS JUSTICE BARKETT HAS BEEN ON THE COURT SHE HAS VOTED TO UPHOLD THE DEATH PENALTY MORE THAN 200 TIMES IT IS TRUE THAT SHE HAS OCCASIONALLY VOTED TO REVERSE DEATH SENTENCES THIS IS ALSO TRUE OF EVERY OTHER JUSTICE ON THE FLORIDA SUPREME COURT THIS IS A NECESSARY CONSEQUENCE OF THE RULES REGARDING SENTENCING PROPORTIONALITY IMPOSED ON THE STATES BY THE US SUPREME COURT IF MR GIGOT HAD HIS WAY AND THE FLORIDA JUSTICES STARTED UPHOLDING EVERY SINGLE DEATH SENTENCE THAT CAME BEFORE THEM THE SUPREME COURT WOULD IMMEDIATELY HOLD FLORIDA'S DEATH PENALTY STATUTE UNCONSTITUTIONAL CHIEF JUSTICE BARKETT'S VOTING RECORD INDICATES THAT HER JUDICIAL PHILOSOPHY IS NOT SIGNIFICANTLY DIFFERENT THAN THE PHILOSOPHY OF THE SIX OTHER JUSTICES IF SHE IS GUILTY OF EXHIBITING 90PROOF LIBERALISM THEN THE SAME DESCRIPTION SHOULD APPLY TO THE ENTIRE COURT NO ONE WHO KNOWS THE FLORIDA COURT WOULD ENDORSE SUCH A STATEMENT FURTHERMORE SINCE MORE THAN 26 MILLION PEOPLE VOTED TO RETAIN JUSTICE BARKETT IN THE LAST ELECTION SHE WON WITH A 61 MAJORITY AFTER A HIGHPROFILE CAMPAIGN TARGETING HER JUDICIAL RECORD MR GIGOT MUST CONCLUDE THAT MOST FLORIDA VOTERS ARE THEMSELVES FLAMING LIBERALS NO ONE WHO KNOWS THE POLITICS OF THIS VERY CONSERVATIVE STATE COULD POSSIBLY REACH THIS CONCLUSION 9311090080 931109 KIDS NEED PARENTS OF ANY RACE BY RANDALL KENNEDY IF ENACTED INTO LAW THE MULTIETHNIC PLACEMENT ACT WOULD GIVE CONGRESSIONAL BACKING TO PRACTICES THAT HAVE THE EFFECT OF CONDEMNING LARGE NUMBERS OF CHILDREN PARTICULARLY CHILDREN OF COLOR TO UNNECESSARILY LONG STAYS IN INSTITUTIONS OR FOSTER CARE THESE PRACTICES INVOLVE A COMMITMENT TO RACIAL MATCHING THE DUBIOUS NOTION THAT AUTHORITIES SHOULD SEEK TO PLACE PARENTLESS CHILDREN OF A GIVEN RACE WITH ADOPTIVE PARENTS OF THAT SAME RACE THE MULTIETHNIC PLACEMENT ACT STATES THAT ITS PURPOSE IS TO DECREASE THE LENGTH OF TIME THAT CHILDREN WAIT TO BE ADOPTED AND TO PREVENT DISCRIMINATION IN THE PLACEMENT OF CHILDREN ON THE BASIS OF RACE COLOR OR NATIONAL ORIGIN YET THE BILL THEN PROCEEDS TO UNDERCUT ITS OWN LAUDATORY GOALS BY PROVIDING THAT IF EFFORTS FAIL TO PRODUCE AN APPROPRIATE PLACEMENT OF A CHILD WITH A PARENT OF THE SAME RACE COLOR OR NATIONAL ORIGIN A TRANSRACIAL OR MULTIETHNIC PLACEMENT MAY BE A PREFERABLE ALTERNATIVE TO LONGTERM FOSTER CARE IN OTHER WORDS THE ACT ASSUMES THE LEGITIMACY OF RACIAL MATCHING PRESUMES THAT AUTHORITIES WILL SEEK SAMERACE ADOPTIONS IN THE FIRST INSTANCE CONVEYS A WILLINGNESS TO COUNTENANCE AT LEAST SOME DELAY FOR THE PURPOSE OF RACIAL MATCHING AND THEN PORTRAYS TRANSRACIAL OR MULTIETHNIC PLACEMENT AS DECIDEDLY INFERIOR BY ASSERTING THAT FOR A PARENTLESS CHILD SUCH A PLACEMENT MAY BE PREFERABLE TO PROLONGED FOSTER CARE THE MULTIETHNIC PLACEMENT ACT IS THUS AN EGREGIOUS EXAMPLE OF LEGISLATIVE INCONSISTENCY ITS AIM IS TO DECREASE THE LENGTH OF TIME THAT CHILDREN WAIT TO BE ADOPTED YET IT EXPRESSLY PERMITS DELAY FOR THE PURPOSE OF RACIAL MATCHING PROHIBITING ONLY UNDUE DELAY THE BILL'S AIM IS TO PREVENT DISCRIMINATION IN THE PLACEMENT OF CHILDREN ON THE BASIS OF RACE COLOR OR NATIONAL ORIGIN YET IT EXPRESSLY STATES THAT AN AGENCY MAY CONSIDER THE RACE COLOR OR NATIONAL ORIGIN OF A CHILD AS A FACTOR IN MAKING A PLACEMENT DECISION THE PRINCIPAL SPONSOR OF THE BILL SEN HOWARD METZENBAUM D OHIO HAS STATED THAT THE MULTIETHNIC PLACEMENT ACT REAFFIRMS THE FUNDAMENTAL PRINCIPLE THAT OUR CHILD WELFARE SYSTEM SHOULD JUDGE PEOPLE BY THE CONTENT OF THEIR CHARACTER AND NOT BY THE COLOR OF THEIR SKIN YET THE BILL'S LANGUAGE DOES JUST THE OPPOSITE AFFIRMING INSTEAD THAT IT IS PROPER FOR THE GOVERNMENT AND PRIVATE AGENCIES THAT RECEIVE FUNDING FROM THE GOVERNMENT TO DECIDE THAT RACIALLY COORDINATED PLACEMENTS OF CHILDREN ARE PRESUMPTIVELY BETTER AND MORE WORTHY OF SUPPORT THAN TRANSRACIAL PLACEMENTS THERE IS ANOTHER MAJOR PROBLEM WITH THE COMPROMISE EMBODIED IN THE MULTIETHNIC PLACEMENT ACT IT WILL FAIL IN ITS EFFORT TO PREVENT THE LENGTHY DELAYS THAT EVEN PROPONENTS OF RACIAL MATCHING RECOGNIZE AS HURTFUL BURDENS THAT DEPRIVE CHILDREN OF A GOOD CHANCE AT BEING ADOPTED IT WILL FAIL BECAUSE AS THE SPONSORS OF THE BILL THEMSELVES RECOGNIZE THERE EXISTS ALREADY A WIDESPREAD AND DEEPLY INGRAINED PRACTICE OF DISCOURAGING TRANSRACIAL PLACEMENTS EVEN WHEN THE COST OF DOING SO IS CONSIGNING CHILDREN TO LENGTHY OR INDEFINITE STAYS IN INSTITUTIONS ATTEMPTING TO MAKE FINE DISTINCTIONS BETWEEN ACCEPTABLE DELAY AND UNDUE DELAY FOR PURPOSES OF RACIAL MATCHING WILL FAIL TO UPROOT THIS PERNICIOUS PRACTICE INDEED THE MULTIETHNIC PLACEMENT ACT WILL LIKELY WORSEN THE SITUATION AT PRESENT THERE EXISTS NO CONGRESSIONAL AUTHORIZATION FOR RACE MATCHING MUCH LESS FOR ANY DELAY IN CHILD PLACEMENTS FOR PURPOSES OF RACIAL MATCHING IF THIS BILL IS ENACTED THERE WILL EXIST CONGRESSIONAL AUTHORIZATION FOR BOTH ACROSS THE NATION RACIAL MINORITIES ACCOUNT FOR AS MANY AS HALF OF THE CHILDREN IN NEED OF PLACEMENT IN ADOPTIVE HOMES DESPITE SUCCESSFUL EFFORTS BY RACIAL MINORITY ADULTS TO ADOPT SUCH CHILDREN AND INCREASING EFFORTS TO ENCOURAGE AND FACILITATE ADOPTION WITHIN MINORITY COMMUNITIES THE POPULATION OF PARENTLESS MINORITY CHILDREN IS INCREASING DRAMATICALLY AGAINST THIS BACKDROP AND CONSIDERING THAT THE BIAS IN FAVOR OF RACIAL MATCHING IS ALREADY INGRAINED IN MANY SOCIAL WELFARE BUREAUCRACIES THE PROVISIONS OF THE MULTIETHNIC PLACEMENT ACT THAT EXPRESSLY AUTHORIZE DELAYS FOR THE PURPOSE OF RACIAL MATCHING ARE UNWISE INTOLERABLE AND UNCONSTITUTIONAL THERE IS SIMPLY NO COMPELLING REASON TO DELAY EVEN BRIEFLY FOR THE PURPOSE OF RACIAL MATCHING PLACING PARENTLESS CHILDREN IN PERMANENT HOMES WHAT PARENTLESS CHILDREN NEED MOST ARE NOT WHITE PARENTS OR BLACK PARENTS OR YELLOW PARENTS BUT LOVING PARENTS ABLE TO RAISE CHILDREN IN A NURTURING ENVIRONMENT ALTHOUGH PROPOSED WITH GOOD INTENTIONS THE MULTIETHNIC PLACEMENT ACT SHOULD BE REJECTED AT THE VERY LEAST ADDITIONAL HEARINGS SHOULD BE HELD TO EXPLORE THE MANY TROUBLING ISSUES THIS PROPOSED LEGISLATION RAISES MR KENNEDY IS A PROFESSOR AT HARVARD LAW SCHOOL 9311090079 931109 REVIEW & OUTLOOK EDITORIAL MRS WHITMAN'S AGENDA WE WERE ALWAYS STRUGGLING WITH AN ELECTORATE THAT WANTED TO GET BACK TO MORE CENTRAL ISSUES CARTER ESKEW GOVERNOR JIM FLORIO'S POLLSTER MY TAX CUT IS MORE THAN JUST A CAMPAIGN PLEDGE IT IS CENTRAL TO THE WAY I WILL GOVERN CHRISTINE TODD WHITMAN THE MORNING AFTER HER UPSET ELECTION AS NEW JERSEY GOVERNOR WITH THE ELECTION NIGHT CHEERING OVER NOW COMES THE HARD PART GOVERNING REPUBLICANS HAD BETTER DEMONSTRATE THEY CAN DO THAT NOW THAT THEY HAVE COMPLETE EXECUTIVE AND LEGISLATIVE CONTROL IN A BIG INDUSTRIAL STATE YOU HAVE TO GO BACK OVER 25 YEARS A GENERATION TO FIND A TIME WHEN THE GOP HELD BOTH THE GOVERNORSHIP AND AN OVERWHELMING THREEFIFTHS MAJORITY OF BOTH LEGISLATIVE HOUSES IN A MAJOR STATE SO NEW JERSEY IS A RARE OPPORTUNITY FOR THE PARTY TO SHOW IT CAN WIN ON A PROGROWTH REFORM AGENDA PASS IT AND THEN MAKE IT WORK BECAUSE FEW REPORTERS EXPECTED HER TO WIN MOST DIDN'T NOTICE HOW BOLD A PLATFORM MRS WHITMAN CAMPAIGNED AND WON ON THE HIGHLIGHTS INCLUDE TAX CUTS THE NEARBY FEATURE BY MATTHEW REES DETAILS HOW COMMITTED MRS WHITMAN BECAME TO HER PROPOSED THREEYEAR 30 INCOME TAX CUT LAST WEEK SHE CHASTISED SENATE PRESIDENT DONALD DIFRANCESCO AND OTHER STATUSQUO REPUBLICANS BEHIND CLOSED DOORS FOR THEIR POSTELECTION HINTS THAT THE TAX CUT WASN'T DOABLE PUBLICLY SHE SAID THAT IF SHE CAN'T CONVINCE GOP LEGISLATORS TO CUT TAXES A FULL 30 SHE WON'T BE RUNNING FOR REELECTION REGULATORY REFORM MRS WHITMAN WANTS TO FORM A COMPETITIVENESS COMMISSION TO LEARN WHY BUSINESSES ARE RELOCATING TO OTHER STATES DAN QUAYLE WHO LED A SIMILAR EFFORT UNDER PRESIDENT BUSH MIGHT HAVE SUGGESTIONS ON ITS OPERATION SHE ALSO WANTS TO SLOW THE REGULATORY PRODUCTION LINE THAT INFLATES THE COST OF EVERYTHING IN THE STATE IN 1990 FORMER GOVERNOR TOM KEAN HEADED A NATIONAL HOUSING COMMISSION THAT FOUND REGULATIONS WERE INCREASING THE PRICE OF HOMES IN NEW JERSEY BY SOME 25 POLITICAL REFORM MRS WHITMAN IS A FIRM BACKER OF BOTH TERM LIMITS AND ALLOWING VOTERS TO PROPOSE INITIATIVES THE GOP LEGISLATURE STIFFED SUPPORTERS OF BOTH ISSUES NEXT YEAR IT WILL HAVE MUCH LESS EXCUSE SCHOOL CHOICE MRS WHITMAN AGREED TO SUPPORT A PILOT SCHOOL CHOICE PROGRAM IN DISTRESSED JERSEY CITY WHOSE SCHOOLS HAVE BEEN TAKEN OVER BY THE STATE IN DEMOCRATIC HUDSON COUNTY THIS WAS SMART POLITICS SHE WON THE VOTES OF 27 OF JERSEY CITY BLACKS INCLUDING MANY PARENTS WHO WANT STATE SCHOLARSHIPS TO SEND THEIR KIDS TO PRIVATE SCHOOL LAST WEEK A JERSEY JOURNAL FRONTPAGE HEADLINE READ WEAK HUDSON VOTE DOOMED FLORIO PROCHOICE PARENTS THERE NOW EXPECT MRS WHITMAN TO DELIVER THE KEY TO MAKING MRS WHITMAN'S AGENDA A REALITY WILL BE HER APPOINTMENTS NEW JERSEY'S GOVERNOR IS THE MOST POWERFUL IN THE COUNTRY WITH POWER TO APPOINT EVERY CABINET OFFICER AND SOME 3500 OTHER POLITICAL POSITIONS A CLEAR LESSON OF THE REAGAN AND BUSH ADMINISTRATIONS WAS PERSONNEL EQUALS POLICY OR AS CONNIE HORNER A NEW JERSEY NATIVE WHO HEADED MR BUSH'S PERSONNEL OFFICE PUTS IT IF YOU WANT TO CHANGE THE STATUS QUO YOU MUST APPOINT PEOPLE ABSOLUTELY COMMITTED TO THAT GOAL IT'S NOT YET CLEAR HOW CONVINCED MRS WHITMAN IS OF THIS ADAGE HER TRANSITION ADVISERS INCLUDE SOME RADICAL REFORMERS BUT THE DAY AFTER THE ELECTION THE JOB OF STATE TREASURER WAS OFFERED TO BOB GRADY A FORMER TOP DEPUTY TO BUSH BUDGET DIRECTOR RICHARD DARMAN MR GRADY DEVELOPED A REPUTATION THERE AS A STUMBLING BLOCK TO THE FREER MARKET PROPOSALS THAT MANAGED TO MAKE HEADWAY IN THOSE YEARS IF NEW JERSEY REPUBLICANS SUCCEED IN MAKING MRS WHITMAN'S BOLD AGENDA WORK THEY CAN PROVE REPUBLICANS CAN GOVERN AS WELL AS PROPOSE SHOULD THEY FAIL THE PROREFORM VOTERS WHO ELECTED THEM WILL IN FUTURE EITHER STAY HOME OR VOTE AGAINST THEM NATIONALLY REPUBLICANS LOOKING TO WIN IN 1996 HAVE A BIG STAKE IN MAKING SURE THEIR BRETHREN IN NEW JERSEY DELIVER THE GOODS SEE RELATED ARTICLE HOW WHITMAN DID IT WSJ NOV 9 1993 9311090078 931109 LETTERS TO THE EDITOR RETREADING INDUSTRY ROLLING RIGHT ALONG SEN JOHN CHAFEE'S LETTER TO THE EDITOR ABOUT SCRAP TIRES LET'S SHRED THE MOUNTAINS OF OLD TIRES OCT 7 STATED THAT RADIAL TIRE DESIGN AND LOW IMPORT PRICES HAVE FORCED RETREADING OUT OF THE MARKETPLACE NOT SO THE RETREAD INDUSTRY IS ALIVE AND WELL AND EVEN GROWING TRUE PASSENGER RETREADING IS ON THE DECLINE DUE TO THE FACTORS SEN CHAFEE MENTIONED IN HIS LETTER BUT TRUCK TIRE RETREADING INCLUDING LIGHT TRUCKS IS VERY HEALTHY TRUCKERS HAVE LONG RECOGNIZED THE ECONOMIC ADVANTAGES OF USING RETREADED TIRES RETREADS PERFORM THE SAME AS COMPARABLE NEW TIRES INCLUDING RADIALS THAT ARE ROUTINELY RETREADED BY THE MILLIONS EVERY YEAR AND THEY DO SO AT A FAR LOWER COST THAN NEW TIRES THIS YEAR IN NORTH AMERICA MORE THAN 33 MILLION TIRES WILL BE RETREADED WHICH MEANS THERE WILL BE 33 MILLION FEWER TIRES ADDED TO THE SCRAP PILES SEN CHAFEE DESCRIBED AND RETREADING IS RECYCLING WHICH IS WHY THERE IS NOW AN EPA GUIDELINE MANDATING THE USE OF RETREADED TIRES ON GOVERNMENT VEHICLES 9311090077 931109 LETTERS TO THE EDITOR CLUCK YOUR TEASER FOR THE OCT 14 MARKETSCAN STATES DAIRY MARKETERS HAVE REASON TO CLUCK AS EGG SALES RISE AS A MARKET RESEARCHER WHO HAS PERFORMED CONSUMER RESEARCH IN THE DAIRY MARKET I CAN TELL YOU THAT EGGS ARE NOT A DAIRY PRODUCT HAVE YOU EVER SEEN A COW LAY AN EGG 9311090076 931109 BUSINESS BRIEF RETAILER CARTER HAWLEY GETS REPRIEVE FROM LENDERS FOR VITAL HOLIDAY SEASON LOS ANGELES CARTER HAWLEY HALE STORES INC STRUGGLING TO TURN ITSELF AROUND IN A WEAK CALIFORNIA ECONOMY WON SOME BREATHING ROOM FROM ITS PRINCIPAL LENDER WHICH ELIMINATED CASH FLOW AND EARNINGS REQUIREMENTS THROUGH FEBRUARY THE MOVE INTENDED TO GET CARTER HAWLEY THROUGH THE CRITICAL CHRISTMAS SEASON GOES A STEP FURTHER THAN GENERAL ELECTRIC CAPITAL CORP'S AGREEMENT TWO WEEKS AGO TO EASE CERTAIN COVENANTS OF ITS 225 MILLION WORKINGCAPITAL FACILITY IN THE LATEST AGREEMENT THE GENERAL ELECTRIC CO UNIT ALSO WILL ALLOW CARTER HAWLEY TO BORROW AGAINST THE FACILITY UP TO 60 MILLION IN JANUARY AND UP TO 75 MILLION IN FEBRUARY SAMUEL ZELL CHAIRMAN WHOSE ZELL/CHILMARK FUND LTD HOLDS A MAJORITY STAKE IN CARTER HAWLEY SAID ADDITIONAL FINANCIAL PLANNING STEPS FOR 1994 ARE UNDER WAY HE SAID IT'S TOO SOON TO ELABORATE GENERAL ELECTRIC CAPITAL'S CONCESSIONS TWO WEEKS AGO APPARENTLY BOTHERED SOME OF OUR VENDORS SAID DAVID L DWORKIN PRESIDENT AND CHIEF EXECUTIVE OFFICER SO DID CARTER HAWLEY'S 26 DROP IN OCTOBER SALES AT STORES OPENED AT LEAST A YEAR AS DID BUSINESS LOST BECAUSE OF RECENT FIRES IN SOUTHERN CALIFORNIA MR DWORKIN SAID CARTER HAWLEY OPERATES 83 DEPARTMENT STORES IN THE WESTERN US UNDER THE NAMES EMPORIUM WEINSTOCKS AND THE BROADWAY AFTER EMERGING FROM CHAPTER 11 BANKRUPTCY PROTECTION FROM CREDITORS A YEAR AGO CARTER HAWLEY BROUGHT IN MR DWORKIN A DEPARTMENTSTORE VETERAN HE IS RADICALLY REVAMPING THE STORES BY DISPOSING OF DOWDY FASHIONS TO BUY MORE UPSCALE APPAREL PRICING ITEMS MORE CONSISTENTLY AND RUNNING FEWER SALES AND CHANGING STORE LAYOUTS TO EMPHASIZE ITEMS SUCH AS CLOTHING THAT PRODUCE BIGGER PROFIT MARGINS BUT WHILE MR DWORKIN CONTENDS THE STEPS WILL PAY OFF IN THE LONG RUN RESULTS ARE STILL HURTING IN ITS FISCAL SECOND QUARTER ENDED JULY 31 CARTER HAWLEY POSTED A LOSS OF 425 MILLION OR 112 A SHARE INCLUDING CHARGES TOTALING 31 MILLION TO COVER WORKFORCE CUTS AND INVENTORY MARKDOWNS MR DWORKIN SAID SUBSTANTIAL SEVERANCE COSTS AND STRATEGIC MARKDOWNS FOR DISCONTINUED PRODUCT LINES GUARANTEE DISAPPOINTING RESULTS FOR THE FULL YEAR 9311090074 931109 INTERNATIONAL USJAPAN TIES ARE IMPROVING MONDALE CLAIMS BY WALL STREET JOURNAL REPORTERS LEE LESCAZE CRAIG FORMAN AND JACOB M SCHLESINGER TOKYO JAPAN'S POLITICAL CHANGES APPEAR GENUINE AND ARE STARTING TO IMPROVE THE SOMETIMES DICEY USJAPAN RELATIONSHIP US AMBASSADOR WALTER F MONDALE SAID IN AN INTERVIEW I THINK THERE IS CHANGE GOING ON HERE THINGS HAVE HAPPENED HE SAID PEOPLE ARE LOOKING AGAIN AT THE ARGUMENT THAT JAPAN IS AN UTTERLY RIGID UNCHANGING UNRESPONSIVE SOCIETY IN THE TWO MONTHS SINCE THE FORMER US VICE PRESIDENT TOOK HIS POST HERE HE HAS SEEN INCREASINGLY POSITIVE SIGNS FROM TOKYO'S LEADERS IN PARTICULAR HE CITES THE JAPANESE GOVERNMENT'S RECENT PLEDGES TO OPEN THE CONSTRUCTION MARKET TO GREATER FOREIGN COMPETITION WE HAD I THOUGHT A VERY INTERESTING AND I HOPE PROPHETIC EXPERIENCE WITH CONSTRUCTION HE SAID MANY CRITICS SAY THAT US PRESSURE PLAYED A ROLE IN THE DECISION WHICH OCCURRED LESS THAN A WEEK BEFORE US SANCTIONS WERE DUE TO TAKE EFFECT BUT MR MONDALE SAID MORE THAN THEY ARE GIVEN CREDIT FOR ON THEIR OWN THE PRIME MINISTER AND THE PEOPLE AT THE POLITICAL LEVEL RATTLED A LOT OF CAGES AROUND HERE AND DECLARED NEW PRINCIPLES HE ALSO WELCOMED THE WAY IN WHICH THE CONSTRUCTION MATTER WAS SETTLED SAYING THAT'S WHAT I LIKE TO SEE AROUND HERE WHERE THEY DO WHAT THIS COUNTRY NEEDS TO DO AND WE CAN WATCH AND APPRECIATE IT HE JOKINGLY ADDED AND I'LL PROBABLY GET A NOBEL PRIZE MR MONDALE SAID HE BELIEVES JAPAN'S POLITICAL LEADERSHIP WHICH TOOK OFFICE SHORTLY BEFORE HE ARRIVED AS ENVOY IS GROWING STRONGER PARTICULARLY IN ITS RELATIONS WITH THE SPRAWLING BUREAUCRACY THOUGH MANY BELIEVED PRIME MINISTER MORIHIRO HOSOKAWA INITIALLY APPEARED TO HAVE A FRAGILE GRIP ON POWER MR MONDALE SAID MY IMPRESSION AROUND HERE IS THAT THERE IS GROWING CREDIBILITY ON HIS PART ON CONSTRUCTION IN PARTICULAR MR MONDALE ADDED PREMIER HOSOKAWA TOOK THAT AND RESOLVED IT HE ADDED HOWEVER THAT BEYOND THAT I JUST DON'T KNOW I'LL GIVE YOU MORESPECIFIC ANSWERS IN JANUARY AND FEBRUARY THE DEADLINES FOR OTHER TRADE ISSUES HE ALSO SAID THE US ADMINISTRATION IS AWARE OF THE NEED TO GIVE THIS GOVERNMENT RUNNING ROOM TO PUT IN PLACE THE DOMESTIC POLITICAL REFORMS IT IS PROMOTING BUT HE ADDED WASHINGTON ISN'T INCLINED TO LET SLIP THE TIMETABLE FOR PROGRESS IN THE CURRENT FRAMEWORK TALKS THOSE TALKS DESIGNED TO ESTABLISH A FRAMEWORK FOR MOREBALANCED TRADE RELATIONS ARE CONTINUING THIS WEEK IN THE US THE FRAMEWORK SETS OUT A SCHEDULE MR MONDALE SAID WE EXPECT TO LIVE WITH THAT SCHEDULE IN HIS TOKYO OFFICE DECORATED WITH CAMPAIGN PHOTOS AND MEMORABILIA OF HIS DAYS IN WASHINGTON MR MONDALE ALSO STRESSED THE IMPORTANCE OF THE USJAPAN SECURITY RELATIONSHIP FOR STABILITY IN ASIA HE SUGGESTED THAT USJAPAN RELATIONS WON'T BE THE CENTER OF ATTENTION AT THE ASIAPACIFIC SUMMIT IN SEATTLE NEXT WEEK IN CONTRAST TO PREVIOUS SUMMITS WHERE USJAPANESE TRADE TENSIONS HAVE BEEN IN THE SPOTLIGHT MR MONDALE SAID HE EXPECTS PRESIDENT CLINTON'S SESSION WITH CHINESE LEADER JIANG ZEMIN WILL BE THE FOCUS OF SCRUTINY THE HEAVY LASER ATTENTION IS GOING TO BE THERE HE SAID 9311090073 931109 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY OCTOBER 27 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9311090072 931109 SMALL STOCK FOCUS DESPITE RALLY INVESTORS ARE CONCERNED MARKET MAY BE DUE FOR FURTHER LOSSES BY WARREN GETLER AND CAITLIN MOLLISON STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SMALL STOCKS RALLIED ON A MILD RECOVERY IN BOND PRICES BUT INVESTORS STILL SEEM CONFUSED ABOUT WHETHER THE SMALLCAPITALIZATION MARKET IS DUE FOR FURTHER LOSSES AFTER LAST WEEK'S DRUBBING ON A SHARP RISE IN INTEREST RATES TRADERS AND ANALYSTS SAID THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE OTHER MAJOR EXCHANGES CLIMBED 146 POINTS OR 058 TO 25457 ON FRIDAY THE INDEX ENDED FLAT THE BUYERS WERE CREEPING BACK IN AND THERE WAS AN ABSENCE OF SELLERS SAID ROBERT O'TOOLE HEAD OF OVERTHECOUNTER TRADING FOR LEHMAN BROTHERS HE SAID THAT PART OF MONDAY'S UPSWING IN SMALLSTOCK PRICES WAS POWERED BY SHORTSELLERS THOSE WHO HAD BET ON STOCKS' FURTHER DECLINES AND WERE FORCED TO SCRAMBLE TO BUY BACK SHARES TO REPLACE POSITIONS THEY HAD EARLIER BORROWED AND SOLD I'VE GOT A FEELING THAT THE MARKET WILL REST A WHILE MR O'TOOLE SAID EVERYBODY'S JUST TRYING TO FIGURE OUT WHAT TO DO NEXT WHEN PEOPLE ARE CONFUSED THEY USUALLY STAY ON THE SIDELINES SOME ANALYSTS SAID LAST WEEK'S SETBACK IN SMALLSTOCK PRICES PROVIDED INVESTORS WITH BARGAINHUNTING OPPORTUNITIES MONDAY'S RALLY WAS A PRETTY NORMAL REACTION TO A PRETTY LOUSY WEEK LAST WEEK SAID CLAUDIA MOTT DIRECTOR OF SMALLCAP RESEARCH AT PRUDENTIAL SECURITIES SOME STOCKS WERE DOWN A TREMENDOUS AMOUNT LAST WEEK EVEN THOSE OF COMPANIES WITH VERY GOOD EARNINGS REPORTS MARY FARRELL A MARKET STRATEGIST AT PAINEWEBBER SAID TECHNOLOGY AND TELECOMMUNICATIONS STOCKS PERFORMED WELL AND WILL REMAIN MARKET LEADERS IN THE SMALLCAP ARENA EARNINGS WILL BE THE DOMINANT FACTOR FOR THE MARKET AND THIRDQUARTER EARNINGS HAVE BEEN COMING IN VERY WELL PARTICULARLY FOR SOME OF THE TECHNOLOGY AND TELECOMMUNICATIONS COMPANIES SHE SAID MANY INSURERS AND BANKS POSTED GAINS CENTRAL RESERVE LIFE CORP ROSE 1 3/8 TO 7 3/4 THE STRONGSVILLE OHIO INSURER SAID ITS THIRDQUARTER NET INCOME CLIMBED TO 44 CENTS A SHARE FROM 27 CENTS A YEAR EARLIER BSB BANCORP HEADQUARTERED IN BINGHAMTON NY IMPROVED 1 1/4 TO 40 ALSO HEALTHMAINTENANCE ORGANIZATION OPERATORS SUCH AS TAKECARE INC OF CONCORD CALIF AND S INC OF DARIEN CONN EACH GAINED MORE THAN A POINT THERMEDICS INC AMEX GAINED 2 1/8 TO 19 FOLLOWING A POSITIVE FISCAL THIRDQUARTER EARNINGS OUTLOOK THE WOBURN MASS MEDICALPRODUCTS COMPANY SAID IT EXPECTS TO REPORT NET INCOME THAT MORE THAN DOUBLED ON A 60 INCREASE IN REVENUE JOHN WOOD THERMEDICS PRESIDENT AND CHIEF EXECUTIVE SAID QUARTERLY NET INCOME LIKELY ROSE TO SIX CENTS FROM THREE CENTS A SHARE AND REVENUE PROBABLY HIT ABOUT 217 MILLION UP FROM 134 MILLION A YEAR AGO MR WOOD ALSO PREDICTED THAT THERMEDICS' 54OWNED THERMO CARDIOSYSTEM INC SUBSIDIARY WILL BE INVITED TO PANEL REVIEW HEARINGS ON ITS HEARTASSIST DEVICE BEFORE THE FOOD AND DRUG ADMINISTRATION BY YEAR END THIS WOULD REPRESENT THE FINAL STEP BEFORE THE PNEUMATIC PUMP COULD BE SOLD FOR USE BY PATIENTS WAITING IN HOSPITALS FOR HEART TRANSPLANTS THERMO CARDIOSYSTEM AMEX EDGED UP 7/8 TO 17 3/4 AMONG BIOTECH CONCERNS CALGENE INC DAVIS CALIF MOVED UP 3/8 TO 16 1/2 CYTOGEN CORP BASED IN PRINCETON NJ ROSE 1/8 TO 7 AND IMMUNOGEN INC CAMBRIDGE MASS CLIMBED 1/4 TO 8 1/4 SYNERGEN INC BOULDER COLO JUMPED 1 1/4 TO 14 1/4 THE PHARMACEUTICALS FIRM SAID THE PRELIMINARY FINDINGS OF ITS PHASE II CLINICAL TRIALS OF ITS ANTRIL DRUG IN RHEUMATOID ARTHRITIS SUGGEST THE DRUG MIGHT HAVE A CLINICAL BENEFIT IN PATIENTS WITH A LONG HISTORY OF RHEUMATOID ARTHRITIS ALIAS RESEARCH INC OF TORONTO ROSE 1 1/4 TO 10 THE VOLUME INVESTOR AN ATLANTA INSTITUTIONAL RESEARCH FIRM SAID IT PUT AN INITIAL BUY RECOMMENDATION ON THE SOFTWARE FIRM'S SHARES MARK SCOTT VOLUME INVESTOR'S DIRECTOR OF RESEARCH SAID HE THINKS INVESTORS WHO WERE BURNED BY THE COLLAPSE IN THE PRICE OF ALIAS'S STOCK TWO YEARS AGO HAVE BEEN RELUCTANT TO BUY AGAIN EVEN THOUGH THE COMPANY IS TURNING AROUND ALLIED PRODUCTS CORP CHICAGO GAINED 1 7/8 TO 12 3/4 ON THE NEW YORK STOCK EXCHANGE THE MANUFACTURER OF FARM IMPLEMENTS SAID IT HAS AGREED TO SELL ITS WHITENEW IDEA FARM EQUIPMENT DIVISION TO AGCO CORP FOR A TOTAL ESTIMATED PURCHASE PRICE OF 50 MILLION TO 60 MILLION SYMBOL TECHNOLOGIES INC NYSE ADDED 2 1/8 TO 18 1/4 THE BOHEMIA NY COMPANY SAID IT IS PROVIDING A CUSTOM BARCODE LASERSCAN ENGINE FOR INTEGRATION INTO THE UNITED PARCEL DELIVERY INFORMATION DEVICE A PORTABLE TERMINAL USED BY DRIVERS FOR UNITED PARCEL SERVICE OF AMERICA INC TO CAPTURE DATA FROM BARCODED PACKAGES TERMS OF THE AGREEMENT WEREN'T DISCLOSED NASDAQ STOCKS THAT HIT HIGHS FOR THE YEAR TO DATE TOTALED 54 WHILE 21 ISSUES HIT LOWS 9311090071 931109 INTERNATIONAL LOPEZ FACES NEW INQUIRY IN GERMANY PROSECUTORS TO INVESTIGATE WHETHER VW OFFICIAL FILED FALSE AFFIDAVITS BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL BONN HAMBURG PUBLIC PROSECUTORS HAVE OPENED A NEW INVESTIGATION INTO CHARGES THAT VOLKSWAGEN AG EXECUTIVE J IGNACIO LOPEZ DE ARRIORTUA SUBMITTED FALSE AFFIDAVITS TO GERMAN COURTS THESE NEW CHARGES CENTER ON APPARENT CONTRADICTIONS BETWEEN STATEMENTS MR LOPEZ SUBMITTED TO A COURT IN HAMBURG AND SEPARATELY TO A COURT IN FRANKFURT A SPOKESMAN FOR THE HAMBURG PUBLIC PROSECUTOR'S OFFICE SAID MR LOPEZ THE FLAMBOYANT PURCHASING CHIEF WHO LEFT HIS FORMER EMPLOYER GENERAL MOTORS CORP IN MARCH AFTER A SPECTACULAR TUSSLE BETWEEN GM AND VW IS AT THE CENTER OF A BITTER INDUSTRIALESPIONAGE DISPUTE BETWEEN THE TWO CAR GIANTS GM CLAIMS THAT MR LOPEZ ABSCONDED WITH HOARDS OF SENSITIVE DOCUMENTS WHEN HE LEFT NO OFFICIAL CHARGES HAVE BEEN FILED IN THIS MATTER BUT THE CASE IS BEING INVESTIGATED BY THE US JUSTICE DEPARTMENT AS WELL AS CRIMINAL PROSECUTORS IN GERMANY MR LOPEZ WHO ORIGINALLY DENIED THE ACCUSATIONS CATEGORICALLY HAS SINCE ACKNOWLEDGED THAT HE MAY HAVE HAD SOME SENSITIVE DOCUMENTS IN HIS POSSESSION BUT THAT THEY WERE DESTROYED SOON AFTER HE LEFT GM TO PREVENT THEM FROM GETTING INTO VW'S HANDS INDIVIDUALS FAMILIAR WITH THE LATEST ANGLE OF THE CASE INDICATE THAT AMONG THE DISCREPANCIES ARE CONFLICTING STATEMENTS OVER WHETHER MR LOPEZ RECEIVED PICTURES OF GM'S NEW VECTRA MODEL BEFORE BOLTING TO VW IN AN AFFIDAVIT SUBMITTED TO A HAMBURG COURT TO SUPPORT VW'S BID TO KEEP A GAG ORDER ON THE GERMAN NEWS MAGAZINE DER SPIEGEL MR LOPEZ SAID HE NEVER RECEIVED ANY SUCH PICTURES THEN IN A STATEMENT LATER SUBMITTED TO A FRANKFURT COURT IN MIDOCTOBER MR LOPEZ SAID HE HAD RECEIVED SUCH PICTURES BUT COULDN'T REMEMBER WHETHER HE HAD RECEIVED ONE OR SIX THE INDIVIDUALS SAID THAT LATEST AFFIDAVIT WAS SUBMITTED IN CONJUNCTION WITH SUMMARY PROCEEDINGS TAKING PLACE TODAY IN A FRANKFURT COURT OF APPEALS CONCERNING SEVEN FORMER GM WORKERS WHO FOLLOWED MR LOPEZ TO VW GM SEEKS A ONEYEAR BAN ON THEIR EMPLOYMENT BY VW CLAIMING THAT THEIR HIRING COULD UNFAIRLY DAMAGE GM'S COMPETITIVE POSITION THE ISSUES OF POSSIBLE FALSE AFFIDAVITS AND ALLEGED INDUSTRIAL ESPIONAGE AREN'T DIRECTLY INVOLVED IN THE HEARINGS TODAY BUT MAY BE REFERRED TO IN TRYING TO ASCERTAIN WHETHER UNFAIR BUSINESS PRACTICES WERE AT PLAY IN HIRING AWAY GM MANAGERS THE HAMBURG PROSECUTOR'S OFFICE WOULDN'T COMMENT MONDAY ON THE CONTENT OF THE VARIOUS AFFIDAVITS MR LOPEZ HAS SUBMITTED TO THE TWO COURTS BUT CONFIRMED THERE WERE DISCREPANCIES THAT NEEDED TO BE INVESTIGATED MR LOPEZ'S LAWYER REACHED YESTERDAY SAID HE WASN'T AWARE OF THE NEW INVESTIGATION OF POSSIBLE FALSE STATEMENTS AND COULDN'T COMMENT UNDER GERMAN LAW A PERSON FOUND GUILTY OF SUPPLYING COURTS WITH FALSE STATEMENTS CAN BE PUNISHED WITH A FINE OR AS MUCH AS THREEYEARS' IMPRISONMENT SOON AFTER THE INITIAL HEARING OF THE SPIEGEL CASE IN HAMBURG IN JULY PUBLIC PROSECUTORS OPENED AN INVESTIGATION INTO POSSIBLE FALSE STATEMENTS ON THE BASIS OF CONTRADICTORY STATEMENTS MADE BY MR LOPEZ AND BY EMPLOYEES OF GM AND ADAM OPEL AG GM'S GERMAN SUBSIDIARY AMONG THE OPPOSING STATEMENTS FOR EXAMPLE IS TESTIMONY BY A GM EXECUTIVE THAT HE GAVE MR LOPEZ DETAILED DESIGN STUDIES AND TECHNICAL DATA ON THE FUTURE ASTRA MODEL MR LOPEZ'S SWORN STATEMENTS DENY RECEIVING THESE STUDIES 9311090070 931109 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 3 1/16 LOW 3 1/16 BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 36 DAYS 308 37 TO 59 DAYS 335 60 TO 149 DAYS 337 150 TO 239 DAYS 343 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 342 60 DAYS 341 90 DAYS CERTIFICATES OF DEPOSIT 256 ONE MONTH 272 TWO MONTHS 276 THREE MONTHS 286 SIX MONTHS 304 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 325 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 3 30 DAYS 320 60 DAYS 320 90 DAYS 320 120 DAYS 320 150 DAYS 320 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/2 3 3/8 TWO MONTHS 3 1/2 3 3/8 THREE MONTHS 3 1/2 3 3/8 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/2 THREE MONTHS 3 9/16 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 644 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 696 60 DAYS 706 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 9311090069 931109 CREDIT MARKETS DIVERGENT RATINGS OF FREMONT BONDS UNDERSCORE HOW THE OLD GUIDEPOSTS AREN'T ALWAYS CLEAR BY ABBY SCHULTZ SPECIAL TO THE WALL STREET JOURNAL NEW YORK WITH ALL THE TURMOIL IN THE US BOND MARKETS OVER THE PAST FEW WEEKS THERE SEEM TO BE FEWER MEASURES INVESTORS CAN COUNT ON TO HELP THEM CHOOSE THE BEST PLACE TO PUT THEIR MONEY AND THANKS TO A RECENT ACTION BY MOODY'S INVESTORS SERVICE NOT EVEN CREDIT RATINGS ARE THE CLEAR INDICATORS THEY MIGHT HAVE APPEARED TO BE YESTERDAY THERE WAS SOME RESPITE FROM THE TURMOIL IN THE BOND MARKET AS THE YIELD OF THE BENCHMARK 30YEAR TREASURY BOND WAS UNCHANGED AT 620 MOODY'S HAS ROCKED THE MARKET FOR SOCALLED ASSETBACKED SECURITIES GIVING A BOND OFFERING A SIGNIFICANTLY LOWER RATING THAN IT RECEIVED FROM STANDARD & POOR'S AND DUFF & PHELPS THE 200 MILLION OFFERING FROM FREMONT FINANCIAL OF SANTA MONICA CALIF WAS BROUGHT TO MARKET ABOUT SEVEN MONTHS AGO BUT MOODY'S WAS NOT ASKED TO RATE IT ASSETBACKED BONDS USUALLY ARE CREATED BY TAKING POOLS OF ASSETS SUCH AS CREDITCARD OR AUTOLOAN PAYMENTS AND PACKAGING THE MONEY FLOWS INTO SECURITIES IN FREMONT'S CASE THE SECURITIES ARE BACKED BY PAYMENTS ON FREMONT'S LOANS TO SMALL BUSINESSES MOODY'S GAVE IT AN UNSOLICITED RATING BECAUSE OF CONCERNS OF INVESTORS WHO HAD ASKED MOODY'S ABOUT THE DEAL MOODY'S GAVE THE ASSETBACKED CERTIFICATES A LOW INVESTMENTGRADE RATING OF BAA1 STANDARD & POOR'S AND DUFF & PHELPS GAVE THE BONDS A TRIPLEA RATING SHORTLY AFTER THEY WERE ISSUED THIS IS THE FIRST TIME WE'VE SEEN THIS WIDE A GULF IN A PUBLIC ASSETBACKED TRANSACTION SAYS JEFFREY SALMON ASSETBACKED ANALYST AT JP MORGAN SECURITIES GIVEN THE FACT THAT MOODY'S AND S&P BOTH HAVE A SIMILAR APPROACH TO STRUCTURED FINANCE TRANSACTIONS THIS IS CLEARLY A BREAK WITH HISTORY THE ISSUE WAS THE FIRST PUBLIC TRANSACTION BACKED BY REVOLVING CREDIT TO SMALL BUSINESSES THESE KINDS OF SECURITIES ARE GAINING NOTICE WITHIN THE FINANCIAL COMMUNITY AND IN WASHINGTON DC WHERE SEVERAL PIECES OF PENDING LEGISLATION SEEK TO ENCOURAGE THE PACKAGING OF BUSINESS LOANS INTO SECURITIES SO IT WAS A VERY VISIBLE TRANSACTION SAYS CLAIRE ROBINSON AN ASSOCIATE DIRECTOR IN MOODY'S ASSETBACKED DEPARTMENT IN TALKING TO INVESTORS ABOUT THE DEAL THERE WERE PEOPLE WHO WERE SKEPTICAL OF THE RATINGS THAT HAD BEEN ASSIGNED BY THE OTHER AGENCIES FREMONT FINANCIAL A UNIT OF FREMONT GENERAL IS A FINANCIAL SERVICES CONCERN WITH INTERESTS IN INSURANCE MOODY'S BELIEVES INVESTORS IN THE BONDS ARE UNLIKELY TO BE PAID SHOULD FREMONT ENCOUNTER FINANCIAL PROBLEMS ALTHOUGH MOODY'S DOESN'T SAY THERE IS ANY INDICATION THAT SUCH PROBLEMS WILL OCCUR THE OTHER TWO RATING AGENCIES DISAGREE THEY ARGUE THAT THE LOANS BACKING THE SECURITIES COULD BE SOLD ENSURING CONTINUED PAYMENT TO INVESTORS THIS ISN'T THE FIRST TIME MOODY'S HAS DIFFERED SHARPLY WITH ITS COMPETITORS THOUGH IT MAY BE ONE OF THE BIGGEST DIFFERENCES BUT PROVIDING RATINGS WITHOUT THE REQUEST OF THE COMPANY ISSUING THE DEBT INFURIATES ISSUERS AND INVESTORS WHO MAY HAVE TO BEAR CONSIDERABLE UNEXPECTED COSTS SECONDARY TRADING OF FREMONT FINANCIAL'S ISSUE FREMONT SMALL BUSINESS LOAN TRUST 1993A HAS COME TO A HALT SINCE MOODY'S ISSUED THE BAA1 RATING LAST TUESDAY INVESTORS OBLIGATED TO OWN ONLY TRIPLEA SECURITIES HAVE HAD TROUBLE FINDING BUYERS SAYS AN INDUSTRY SOURCE THE ACTION ALSO AFFECTED 100 MILLION OF NEW SECURITIES SOLD BY FREMONT LAST WEEK FREMONT HAD TO INCREASE THE YIELD ON THE OFFERING TO ATTRACT INVESTORS THAT OFFERING WHICH HAS NOT BEEN RATED BY ANY AGENCY WAS PRICED BY LEAD UNDERWRITER MERRILL LYNCH TO FLOAT AT A SPREAD OF 035 PERCENTAGE POINT ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE LIBOR BUT THE SPREAD WAS BOOSTED LATE THURSDAY TO 050 PERCENTAGE POINT ABOVE THE LIBOR RATE YESTERDAY THE ONEMONTH LIBOR WAS 319 THE BIGGER SPREAD WILL COST FREMONT 600000 MORE IN EXTRA INTEREST COSTS OVER THE FOURYEAR LIFE OF THE BONDS WAYNE BAILEY CHIEF FINANCIAL OFFICER OF FREMONT GENERAL SAYS THE COMPANY WENT FORWARD TO ENSURE THE INTEGRITY OF A SECURITIZATION PROGRAM THAT TOOK TWO YEARS TO DEVELOP MOODY'S POLICY IS TO ATTEMPT TO RATE ALL PUBLIC ISSUES WHETHER ASKED OR PAID BY THE ISSUING COMPANY CRITICS CHARGE THE POLICY IS A PLOY TO ENSURE MOODY'S DOESN'T LOSE MARKET SHARE PEOPLE HAVE TOLD US OVER AND OVER AGAIN THAT THEY WANT TO KNOW WHAT WE THINK ESPECIALLY WHEN OUR OPINION DIFFERS SAYS MS ROBINSON OF MOODY'S MOODY'S BELIEVES THE DEAL DIDN'T OFFER BUYERS ENOUGH PROTECTION SHOULD THE BANKRUPTCY OF FREMONT TRIGGER A CHAIN OF BORROWER DEFAULTS AND BANKRUPTCIES ACCORDING TO MARK ADELSON A SENIOR MOODY'S ANALYST IF FREMONT WENT OUT OF BUSINESS AND DIDN'T MAKE THE LOANS THAT COULD CREATE A LIQUIDITY CRISIS FOR THE BORROWERS SAYS MR ADELSON S&P COUNTERS THAT THE DEAL CONTAINED PROTECTIONS IN THAT FREMONT ADVANCES LOANS TO ITS BORROWERS BASED ON THE WORST CASE OR LIQUIDATION VALUE OF COLLATERAL THEY PUT UP AGAINST THE LOANS THE COLLATERAL IS MOSTLY ACCOUNTS RECEIVABLE BUT ALSO INVENTORY MACHINERY AND EQUIPMENT FREMONT'S LOAN AMOUNTS AVERAGED 50 TO 60 OF THE COLLATERAL VALUE OR 50 TO 60 CENTS ON THE DOLLAR PROVIDING INVESTORS WITH ANOTHER LARGE CUSHION OF CREDIT SUPPORT SAYS TYLER GOSS AN S&P ANALYST THE FREMONT EXPOSURE IS SIGNIFICANTLY BELOW THE COLLATERAL VALUE HE SAYS SEVERAL INVESTORS AND INVESTMENT BANKERS SAY MOODY'S HAD NO RIGHT TO ISSUE THE NEARLY SPECULATIVEGRADE RATING WITHOUT HAVING THE SAME ACCESS TO FREMONT'S OPERATIONS AND MANAGEMENT AFFORDED S&P AND DUFF & PHELPS BUT NOT EVERYONE AGREES I THINK IT'S PROBABLY HEALTHY THAT THE AGENCIES ARE COMING THROUGH AND RATING DEALS EVEN IF THEY ARE NOT ASKED SAYS ROBERT PERSONS A MUTUALFUND MANAGER AT SCUDDER STEVENS & CLARK IN BOSTON MOST ASSETBACKED DEALS NO MATTER WHAT THE RATING OF THE ISSUER ARE RATED TRIPLEA BECAUSE THE ASSETS ARE SOLD TO A SPECIALPURPOSE VEHICLE LEGALLY THE ASSETS USUALLY CREDITCARD OR AUTO LOANS ARE DIVORCED FROM THE ISSUING COMPANY ONCE THE SALE IS COMPLETE BUT MOODY'S SAYS SUCH SEPARATION MAKES LITTLE DIFFERENCE IN FREMONT'S CASE THERE'S TOO MUCH OF A LIKELIHOOD THAT FREMONT'S FORTUNES COULD AFFECT ITS BORROWERS A REMOTE POSSIBILITY IN SOMETHING LIKE AN AUTO LOAN TRANSACTION SAYS MOODY'S THE LOANS IN THIS CASE ARE 126 REVOLVING LINES OF CREDIT TO COMPANIES WITH WEAK CREDIT HISTORIES WHICH IN MOODY'S VIEW CREATES ANOTHER PROBLEM IF FREMONT WERE TO GO OUT OF BUSINESS THESE BORROWERS WOULD HAVE FEW ALTERNATIVE MEANS OF FINANCING SAYS MR ADELSON OF MOODY'S BUT MR GOSS OF S&P SAYS MOST BORROWERS WHO HAVE LEFT FREMONT HAVE BEEN REFINANCED BY BANKS OR OTHER ASSETBASED LENDERS IF THE BORROWERS WERE TO GO UNDER THE SPECIALVEHICLE WOULD HAVE RIGHTS TO THEIR COLLATERAL ABOUT TWOTHIRDS OF THE COLLATERAL ARE ACCOUNTS RECEIVABLE OR MONEY DUE THESE MANUFACTURERS WHICH CAN BE DIFFICULT TO COLLECT BY A COMPANY SUFFERING FINANCIAL TROUBLES SAYS MR ADELSON THE REST CONSISTS OF INVENTORY MACHINERY AND EQUIPMENT WHICH IS EVEN RISKIER COLLATERAL HE SAYS SOURCES CLOSE TO THE DEAL SAY MOODY'S EVALUATION SUFFERS FROM THE AGENCY'S UNFAMILIARITY WITH FREMONT'S BUSINESS PRACTICES AND PROCEDURES JULIE SCHLUETER HEAD OF THE ASSETBACKED GROUP AT DUFF & PHELPS AGREES ONE THING KEY WHEN YOU DO A RATING IS THAT YOU DO HAVE ACCESS TO THE SERVICING OPERATIONS THE MANAGEMENT AND THE STANDARDS AND POLICIES OF THE COMPANY SHE SAYS THAT PLAYS A BIG IMPACT IN THE RATING BUT MR ADELSON ARGUES THAT YOU CAN'T RELY MOSTLY ON DATA FROM THE COMPANY IN A TRADE OR ACCOUNTS RECEIVABLES CASE TO DEAL WITH THE QUESTION OF HOW THE RECEIVABLES WILL PERFORM IF THE COMPANY WASN'T THERE TREASURY PRICES ROSE FOR THE FIRST TIME IN SEVEN TRADING SESSIONS AS THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND ROSE LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH 1000 FACE VALUE TO 100 19/32 ITS YIELD WAS UNCHANGED AT 620 NOW THAT THE TREASURY IS SELLING 30YEAR BONDS TWICE A YEAR INSTEAD OF QUARTERLY THE 30YEAR OFTEN BEHAVES DIFFERENTLY THAN THE REST OF THE MARKET SAID TRADERS YESTERDAY'S TRADING WAS DOMINATED LARGELY BY THE CLOSING OUT OF SPECULATIVE POSITIONS AHEAD OF THE THREEYEAR NOTE AND 10YEAR NOTE AUCTIONS AND ECONOMIC DATA SCHEDULED THIS WEEK ESPECIALLY PREVALENT WAS THE CLOSING OUT OF SHORTS IN A SHORT SALE A TRADER SELLS A BORROWED SECURITY IN HOPES OF BUYING THE ISSUE BACK AT LOWER LEVELS FOR A PROFIT THE MARKET FACES SOME FORMIDABLE CHALLENGES THIS WEEK BEGINNING WITH TODAY'S RELEASE OF THE OCTOBER PRODUCERPRICE INDEX FORECASTS FOR THE PPI CENTER ON AN INCREASE OF 03 PRODUCER PRICES WILL BE FOLLOWED BY THE CONSUMER PRICE INDEX REPORT SLATED TO BE RELEASED TOMORROW THE CPI HOWEVER IS EXPECTED TO BE DISTORTED BY AN INCREASE IN GASOLINE TAXES WHICH TOOK EFFECT DURING OCTOBER AS A RESULT TRADERS ARE LIKELY TO PAY MORE ATTENTION TO THE PPI AND TO THE SOCALLED CORE CPI WHICH EXCLUDES THE NOTORIOUSLY VOLATILE FOOD AND ENERGY COMPONENTS THE MARKET ALSO WILL BE STRUGGLING TO CONTEND WITH A FLOOD OF NEW ISSUANCE FROM THE TREASURY DEPARTMENT THE GOVERNMENT WILL SELL 17 BILLION IN THREEYEAR NOTES TODAY AND 12 BILLION IN 10YEAR NOTES TOMORROW IN WHENISSUED TRADING LATE YESTERDAY THE THREEYEAR NOTE TO BE AUCTIONED TODAY YIELDED 447 THREE WEEKS AGO THE CURRENT THREEYEAR NOTE WAS YIELDING UNDER 410 THE 10YEAR NOTE TO BE AUCTIONED TOMORROW WAS YIELDING 566 IN WHENISSUED TRADING THE TREASURY YESTERDAY SOLD 2772 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 311 FOR A COUPONEQUIVALENT YIELD OF 318 THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 328 FOR A COUPONEQUIVALENT YIELD OF 338 HERE ARE THE DETAILS OF THE AUCTION RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED NOV 12 THE 13WEEK BILLS MATURE FEB 10 1994 AND THE 26WEEK BILLS MATURE MAY 12 1994 MUNICIPAL BONDS WERE BOLSTERED BY THE STRONGEST BUYING IN ABOUT THREE WEEKS CLOSING WITH GAINS OF 1/4 TO A FULL POINT MARKET PARTICIPANTS GOBBLED UP A NUMBER OF THE ISSUES THAT FELL SWIFTLY IN RECENT WEEKS IN RESPONSE TO A SERIES OF STRONGERTHANEXPECTED US ECONOMIC REPORTS THIS SESSION'S LEAP MAY BE AN INDICATION THAT MUNIS ARE FINDING A BOTTOM SOME TAXEXEMPTBOND SPECIALISTS SAY MARKET PARTICIPANTS DON'T APPEAR VERY WORRIED ABOUT OCTOBER'S PRODUCERPRICE INDEX REPORT DUE TODAY AND THE CONSUMERPRICE INDEX REPORT DUE WEDNESDAY SAID HANS HANF A TRADER AT PRUDENTIAL SECURITIES THE PPI LIKELY ROSE 03 AFTER INCREASING 02 IN SEPTEMBER ACCORDING TO A DOW JONES CAPITAL MARKETS REPORT CONSENSUS YESTERDAY THE FLORIDA BOARD OF EDUCATION'S 520 OF 2023 CAPITAL OUTLAY PUBLIC EDUCATION BONDS WERE 1/2 HIGHER AT 94 5/8 TO 94 3/4 YIELDING 556 THE NEW YORK STATE POWER AUTHORITY'S 525 OF 2018 GENERALPURPOSE REFUNDING BONDS FINISHED A POINT STRONGER AT 96 3/4 TO 97 YIELDING 548 THERE WAS A MEAGER 225 MILLION OF DEBT ISSUED YESTERDAY ITT FINANCIAL A UNIT OF ITT PRICED 225 MILLION OF FLOATINGRATE NOTES IN TWO TRANCHES A NUMBER OF CORPORATE DEBT ISSUERS ARE EXPECTED TO MAKE FINAL DECISIONS EARLY TODAY ABOUT WHETHER THEY LIKE RATES ENOUGH TO PRICE DEBT THIS WEEK SYNDICATE OFFICIALS SAID TRADING IN THE INVESTMENTGRADE MARKET WAS LIGHT WITH SPREADS HOLDING STEADY TRADERS SAID PRICES FOLLOWED TREASURYS WHICH POSTED GAINS AFTER A RECENT SLIDE RJR NABISCO BONDS BENEFITED FROM MARKET SPECULATION THAT BEGAN FRIDAY THAT PHILIP MORRIS WOULD RAISE ITS CIGARETTE PRICES ACCORDING TO EDWARD MALLY A CORPORATE BOND ANALYST AT SALOMON BROTHERS RJR'S 10 1/2S OF 1998 TRADED UP TO 109 5/8 FROM 108 1/2 AS THE YIELD DROPPED TO 787 FROM 815 THE COMPANY'S BONDS TYPICALLY ARE MORE VOLATILE THAN THE BONDS SOLD BY ITS COMPETITORS RJR IS A UNIT OF RJR NABISCO HOLDINGS IN THE JUNKBOND MARKET TRADING ALSO WAS SLOW WITH PRICES REMAINING BASICALLY UNCHANGED THE PRICE OF KAISER ALUMINUM & CHEMICAL'S BONDS CONTINUE TO SLIP THE BONDS TRADED DOWN TO 92 FROM 93 1/2 AS THE YIELD ROSE TO 1433 FROM 14 ON FRIDAY THE BOND DROPPED LAST WEEK IN RESPONSE TO AN ANNOUNCEMENT OF LOWERTHANEXPECTED EARNINGS A TRADER SAID KAISER IS A UNIT OF KAISER ALUMINUM MORTGAGES CONTINUED TO DO WELL BUT THE DAY'S ACTIVITIES WERE DRIVEN BY DEALERS AS CUSTOMERS SAT OUT THE SESSION INVESTORS ARE AWAITING THE REACTION OF THE TREASURY MARKET TO KEY INFLATION DATA AS WELL AS THE TREASURY REFUNDING ASSETBACKED PLAYERS POSITIONED FOR WHAT COULD BE A BUSY WEEK HOUSEHOLD FINANCE A DIVISION OF HOUSEHOLD INTERNATIONAL ANNOUNCED TWO TRANSACTIONS TOTALING 105 BILLION BACKED BY GENERAL MOTORS CREDITCARD RECEIVABLES THE ISSUES ARE EXPECTED TO BE PRICED TODAY BY UNDERWRITERS LED BY CS FIRST BOSTON IF THE TREASURY MARKET FAILS TO RALLY ON ANY OF THE DATA DUE THIS WEEK MORTGAGES CAN BE EXPECTED TO DO BETTER THE BACKUP IN RATES HAS TENUOUSLY REMOVED INVESTOR FEARS ON HOMELOAN REFINANCINGS A FREDDIE MAC 65 PASSTHROUGH WAS YIELDING 653 88 BASIS POINTS MORE THAN THE 5648 YIELD ON THE 10YEAR TREASURY NOTE GINNIE MAE 65S FOR NOVEMBER DELIVERY WERE ENDING UP 15/32 AT 99 23/32 FREDDIE MAC GOLD 65S WERE ENDING UP 15/32 AT 100 AND FANNIE MAE 65S WERE ENDING UP 16/32 AT 99 25/32 THE 10YEAR NOTE WAS ENDING UP 19/32 AT 100 24/32 THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9311090067 931109 AIRLINES' ACCORD WITH GOVERNMENT APPROVED BY JUDGE BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A FEDERAL DISTRICT JUDGE APPROVED A SETTLEMENT BETWEEN THE GOVERNMENT AND TWO AIRLINES CHARGED WITH PRICEFIXING DESPITE WIDESPREAD OBJECTIONS THAT THE AGREEMENT WOULD REDUCE INFORMATION FOR CONSUMERS JUDGE STANLEY HARRIS SAID THE SETTLEMENT AGREED TO IN JANUARY WITH UAL CORP'S UNITED AIRLINES AND USAIR GROUP INC'S USAIR UNIT IS IN THE PUBLIC INTEREST EVEN THOUGH THE OVERWHELMING MAJORITY OF MORE THAN 700 SUBMITTED COMMENTS OPPOSED THE CONSENT DECREE THE SETTLEMENT PROHIBITS THE AIRLINES FROM FIXING PRICES AND USING A COMPUTER SYSTEM TO INDICATE THE FIRST AND LAST DATES OF FARE DISCOUNTS THE FIRST AND LAST DATES THE JUSTICE DEPARTMENT SAID WERE USED TO COMMUNICATE PRICING MESSAGES TO COMPETITORS EIGHT AIRLINES AND A COMPUTERDATABASE COMPANY OWNED BY THE INDUSTRY WERE CHARGED WITH PRICEFIXING THE AIRLINES THAT HAVEN'T SETTLED ARE ALASKA AIR GROUP INC'S ALASKA AIRLINES AMR CORP'S AMERICAN AIRLINES CONTINENTAL AIRLINES INC'S CONTINENTAL AIRLINES DELTA AIR LINES WINGS HOLDINGS INC'S NORTHWEST AIRLINES AND TRANS WORLD AIRLINES AIRLINE TARIFF PUBLISHING CO OF CHANTILLY VA WAS ALSO CHARGED WITH USING ITS DATABASE AS THE MEDIUM THROUGH WHICH THE AIRLINES WOULD SIGNAL PRICE CHANGES TO ONE ANOTHER A TRIAL FOR THE REMAINING DEFENDANTS IS STILL IN THE WORKS JUDGE HARRIS OF THE DISTRICT OF COLUMBIA DISTRICT COURT SAID THE HOUSE COMMITTEE ON PUBLIC WORKS AND TRANSPORTATION AS WELL AS CONSUMER GROUPS AND TRAVEL AGENTS OPPOSED THE SETTLEMENT BECAUSE IT WOULD DENY CONSUMERS INFORMATION ON THE TIMING OF PRICE CHANGES PROHIBITING AIRLINES AND TRAVEL AGENTS FROM SHARING THE FIRST AND LAST DATES OF PRICE DISCOUNTS WILL DEPRIVE CONSUMERS OF VALUABLE INFORMATION AND LIMIT THEIR FLEXIBILITY IN MAKING AIRLINE RESERVATIONS BECAUSE THE PROHIBITIONS WILL INCREASE THE UNPREDICTABILITY OF FARES JUDGE HARRIS WROTE IN SUMMARIZING THE OPPOSITION'S ARGUMENT THE GOVERNMENT REBUTTED THAT ARGUMENT SAYING THE AIRLINES USE THE PRICE DATES AS A CONSTANTLY CHANGING TOOL OF FARE NEGOTIATION THAT DON'T PROVIDE CUSTOMERS WITH RELIABLE INFORMATION THE DEPARTMENT SAID THE AIRLINES COULD PROTECT CUSTOMERS FROM INCREASES BY PROVIDING FARE GUARANTEES JUDGE HARRIS SAID THERE WAS MERIT IN BOTH ARGUMENTS HE SIDED WITH THE GOVERNMENT HE SAID IN HIS OPINION BECAUSE DURING THE MONTHS BEFORE THE SETTLEMENT BECAME FINAL USAIR AND UNITED WERE FOLLOWING THE PROVISIONS OF THE CONSENT DECREE WITH LITTLE EVIDENCE OF HARM TO THE AIRLINES OR TRAVEL AGENTS HE SAID THE PROPOSED FINAL JUDGMENT MEETS THE REQUIREMENTS FOR AN EFFECTIVE ANTITRUST REMEDY WITHOUT IMPOSING UNDUE AND UNNECESSARY BURDENS ON OTHER ASPECTS OF THE PUBLIC INTEREST 9311090066 931109 UNITED TECHNOLOGIES OFFICIAL SAYS JOB CUTS MAY EXCEED FORECAST LONDON AP JOB LOSSES AT UNITED TECHNOLOGIES CORP COULD BE WORSE THAN THE COMPANY HAD PREDICTED WITH MORE THAN 30000 POSITIONS CUT BY 1995 SAID GEORGE DAVID THE COMPANY'S PRESIDENT THE DEFENSE CONTRACTOR BASED IN HARTFORD CONN HAD SAID A RESTRUCTURING PROGRAM BEGUN IN 1992 WOULD ELIMINATE SOME 26000 JOBS 22450 ALREADY HAVE BEEN CUT OUR OFFICIAL NUMBER IS 26000 BUT I SEE IT GOING OVER 30000 BY THE TIME WE'RE DONE MR DAVID SAID UNITED TECHNOLOGIES NOW HAS 173800 EMPLOYEES WORLDWIDE THE COMPANY HAS SAID ABOUT HALF OF THE JOB LOSSES WILL OCCUR AT THE COMPANY'S PRATT & WHITNEY UNIT WHICH MAKES JET ENGINES MR DAVID SPEAKING TO ANALYSTS AND REPORTERS IN LONDON SAID THE EUROPEAN RECESSION WILL HURT 1993 REVENUE AND LIKELY CUT PROFITABILITY IN 1994 9311090064 931109 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY CHRISTOPHER CONTE COMPUTER TRAINING SCORES HIGH IN EFFICIENCY BUT LACKS THE HUMAN TOUCH AT FEDERAL EXPRESS COMPUTERS TRIM TRAINING TIME BY 50 DUKE POWER SAVES 100 EACH TIME AN EMPLOYEE USES THE COMPUTERLEARNING CENTER RATHER THAN ATTEND LECTURES BARNETT BANKS' EMPLOYEES DO 15MINUTE COMPUTER EXERCISES AT THEIR DESKS AND SUCH EMPLOYEES OFTEN RETAIN MORE COMPUTER LEARNING IS RISKFREE EXPLAINS TRAVELERS VICE PRESIDENT LINDA LEWIS IF YOU DIDN'T QUITE GET IT YOU CAN WORK UNTIL YOU DO COMPUTERS HAVE LIMITS THOUGH GERRY HUDSONMARTIN WHO RUNS JOHN HANCOCK'S TECHNICAL EDUCATION CENTERS SAYS SOME PEOPLE LEARN BETTER IN A SOCIAL SETTING A COMPUTER IS LOUSY AT WRONGANSWER ANALYSIS HE ADDS IT ONLY SAYS WRONG TRY AGAIN' AN INSTRUCTOR WOULD EXPLAIN WHAT'S WRONG AND WHY DR LEWIS ADDS THAT COMPUTERS ARE WEAK AT TEACHING SOFT SKILLS COMMUNICATION WITH COMPUTERS INCREASINGLY USED ON THE ASSEMBLY LINE AND FOR INVENTORY WHIRLPOOL LAST YEAR RACKED UP 20000 HOURS OF COMPUTER TRAINING AT ITS ARKANSAS REFRIGERATOR FACTORY A COLLEGE DEGREE ISN'T THE ONLY TOOL FOR CRACKING TODAY'S JOB MARKET PITTSBURGHAREA EMPLOYERS SUCH AS WESTINGHOUSE AND USAIR HOST A CAREERINFORMATION PROGRAM THIS WEEK AIMED AT NONCOLLEGEBOUND STUDENTS THEY SAY 70 OF JOBS IN THE NEXT DECADE WILL REQUIRE TRAINING OTHER THAN COLLEGE FOUR YEARS OF COLLEGE MAY NOT QUALIFY A STUDENT FOR THE KINDS OF JOBS PROJECTED TO BECOME AVAILABLE IN THE COMING YEARS SAYS PENN TECHNICAL INSTITUTE DIRECTOR LOUIS DIMASI CENSUS FIGURES BUTTRESS THEIR POINT IN 1991 SOME 25 OF US WORKERS WERE COLLEGE GRADUATES BUT ONLY 16 REPORTED NEEDING FOR THEIR JOBS WHAT THEY LEARNED IN COLLEGE MOREOVER HIGHSCHOOL GRADUATES WHO RECEIVED TRAINING TO QUALIFY FOR JOBS AND TO IMPROVE THEIR SKILLS HAD SLIGHTLY HIGHER MEDIAN EARNINGS THAN COLLEGE GRADUATES WHO RECEIVED NO SUCH TRAINING SKILLS NEEDED DATA REFLECT THE TREND TOWARD A MORESKILLED WORK FORCE THE NUMBER OF WORKERS WHO RECEIVED TRAINING TO IMPROVE JOB SKILLS SURGED 39 BETWEEN 1983 AND 1991 WHILE TOTAL EMPLOYMENT CLIMBED 19 ACCORDING TO THE ANALYSIS OF CENSUS FIGURES PUBLISHED IN THE LABOR DEPARTMENT'S MONTHLY LABOR REVIEW IN 1991 41 OF WORKERS RECEIVED SUCH TRAINING UP FROM 35 CONCLUDES ECONOMIST ALAN ECK THE WORKPLACE HAS BEEN REORGANIZED ANOBS NOW REQUIRE READING MATHEMATICS AND COMMUNICATIONS SKILLS THE FIGURES DEMONSTRATE THE PREMIUM ON HIGHSKILL JOBS THE NUMBER OF MANAGERIAL AND PROFESSIONAL JOBS SURGED 324 AND PEOPLE WITH SUCH JOBS BOASTED THE MOST FORMAL SCHOOLING MOST JOB TRAINING AND BIGGEST EARNINGS GAINS BY CONTRAST THE NUMBER OF OPERATORS FABRICATORS AND LABORERS ROSE JUST 61 AND THEY HAD THE LEAST EDUCATION AND TRAINING AND ONE OF THE STEEPEST EARNINGS DECLINES A SEPARATE STUDY BY UNIVERSITY OF OKLAHOMA PROF TIMOTHY DUNNE SHOWS THAT WAGES IN FACTORIES USING SIX OR MORE ADVANCED TECHNOLOGIES AVERAGED 1184 AN HOUR IN 1988 COMPARED WITH 863 IN ONES WITH NO SUCH TECHNOLOGIES CREW'S QUARTERS A HOUSE SUBCOMMITTEE APPROVES A BILL TO REQUIRE FOREIGNFLAG CRUISE SHIPS TO PAY AT LEAST THE US MINIMUM WAGE IF THEY USE US PORTS ADVOCATES SAY IT WOULD MAKE JOBS ON THE SHIPS AVAILABLE TO AMERICANS BUT CRITICS SAY IT WOULD DRIVE CRUISE LINES TO PORTS IN THE CARIBBEAN TREASURY ECONOMISTS BATTLING LABOR OPPOSITION TO NAFTA SAY EXPORTS TO MEXICO BOOST DEMAND FOR US WORKERS IN UNIONIZED INDUSTRIES ABOUT 25 OF WORKERS IN 15 INDUSTRIES THAT EXPORT THE MOST TO MEXICO HAVE UNION CONTRACTS COMPARED WITH 19 OF THOSE IN INDUSTRIES FACING THE MOST COMPETITION FROM MEXICAN IMPORTS HEALTH BARGAIN AMERICANS WOULD BE WILLING TO PAY ON AVERAGE 169 IN ADDITIONAL TAXES ANNUALLY TO PROVIDE UNIVERSAL HEALTH INSURANCE ACCORDING TO AN EMPLOYEE BENEFIT RESEARCH INSTITUTE POLL THE CLINTON ADMINISTRATION SAYS ITS PLAN WHICH WOULD ACCOMPLISH THE TASK WOULD RAISE COSTS FOR JUST 30 OF AMERICANS AN AVERAGE OF 24 THE QUALITY TEST A NEW INDEX GIVES A MORE SUBTLE GAUGE OF JOBMARKET HEALTH THE ECONOMY HAS GENERATED SOME 23 MILLION JOBS SINCE MARCH 1991 YET AMERICANS REMAIN PESSIMISTIC THE LABOR RESEARCH ASSOCIATION A LABORORIENTED THINKTANK THINKS IT KNOWS WHY GROSS EMPLOYMENT FIGURES INCLUDING THE DECLINE IN THE UNEMPLOYMENT RATE FROM 76 IN JUNE 1992 TO 68 LAST MONTH DON'T REFLECT THE DETERIORATING QUALITY OF JOB OPPORTUNITIES THE GROUP'S JOB OPPORTUNITY BAROMETER GAUGES ALONG WITH UNEMPLOYMENT DATA ON AVERAGE WEEKLY EARNINGS TEMPORARY EMPLOYMENT INVOLUNTARY PARTTIME EMPLOYMENT THE DURATION OF UNEMPLOYMENT AND HELPWANTED ADVERTISING THE INDEX GENERALLY HAS TRACKED THE UPS AND DOWNS OF THE ECONOMY ALTHOUGH IT HAS TENDED TO DECLINE SINCE 1974 AND IT HAS LEVELED OFF DURING THE CURRENT RECOVERY THIS DEMONSTRATES WHY PEOPLE'S PERCEPTIONS OF JOB OPPORTUNITIES CONTINUE TO DECLINE EVEN THOUGH THE UNEMPLOYMENT RATE HAS FALLEN DURING THE LAST SIX MONTHS SAYS THE ASSOCIATION'S EXECUTIVE DIRECTOR GREG TARPINIAN THE CHECKOFF THE WHITE HOUSE SEEKS A BUDGET EXAMINER TO HELP OVERSEE MORE THAN 200 BILLION SPENT ANNUALLY ON MEDICARE AND MEDICAID THE SALARY 27789 CULTURE COLLISION DALE CARNEGIE SAYS IT PLANS TO OPEN AN OFFICE IN CHINA IN 1994 9311090062 931109 BUSINESS BRIEF WM WRIGLEY JR CO GAIN OF 25 MILLION ON SALE OF UNIT WILL BE REPORTED WM WRIGLEY JR CO SAID IT WILL POST A 25 MILLION GAIN IN THE FIRST QUARTER OF 1994 FROM THE SALE OF THE REAL ESTATE HOLDINGS OF ITS SINGAPORE SUBSIDIARY MALAYAN GUTTAS PRIVATE LTD IN THE FIRST QUARTER OF 1993 THE CHEWINGGUM MAKER EARNED 424 MILLION OR 36 CENTS A SHARE ON SALES OF 3323 MILLION WRIGLEY SAID THE SUBSIDIARY'S OPERATIONS CONSIST OF A GUMBASE PROCESSING FACILITY THAT HAD CEASED PRODUCTION AT THE END OF THE THIRD QUARTER WRIGLEY SAID THE SALE OF THE PROPERTY IS EXPECTED TO CLOSE IN JANUARY THE COMPANY SAID PROCEEDS FROM THE SALE WILL BE USED TO INCREASE ITS CAPITAL EXPENDITURES ON PROPERTY PLANT AND EQUIPMENT IN 1994 TO KEEP PACE WITH STRONG VOLUME GROWTH PARTICULARLY IN SOME OF ITS NEWER INTERNATIONAL MARKETS 9311090061 931109 POLITICS & POLICY WHILE GORE FACES PITFALLS IN DEVISING HAPPILYEVERNAFTA END TO PEROT DEBATE BY MICHAEL K FRISBY AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WHEN VICE PRESIDENT AL GORE FACES OFF WITH ROSS PEROT OVER THE NORTH AMERICAN FREE TRADE AGREEMENT THE SKIRMISH MAY TURN ON HOW MR GORE RESPONDS TO THE TEXAN ASKING HOW MANY JOBS HAVE YOU CREATED TONIGHT'S MINIDEBATE OVER NAFTA IS A TEST OF CREDIBILITY MR PEROT WILL INSIST THAT AMERICAN JOBS WILL BE LOST IF A FREETRADE ZONE IS CREATED BETWEEN THE US MEXICO AND CANADA MR GORE WILL INSIST JUST AS STRONGLY THAT JOBS WILL BE CREATED BUT MR PEROT WILL BACK UP HIS ASSERTIONS WITH HIS VAST BUSINESS EXPERIENCE AND SUCCESS MR GORE BY CONTRAST HAS LITTLE EXPERIENCE RUNNING A BUSINESS OR CREATING JOBS WHICH IS JUST THE SORT OF OPPORTUNITY FOR COMMENT THAT MR PEROT USUALLY FINDS IRRESISTIBLE IT IS JUST ONE OF THE REASONS WHY THE VICE PRESIDENT A SMART BUT OFTEN WOODEN POLITICIAN IS SUCH AN UNLIKELY CHOICE TO BE TOSSED INTO THE RING WITH THE GLIB MR PEROT INDEED MANY WHITE HOUSE AIDES ARE UNEASY TO SAY THE LEAST AT THE GAMBLE THAT THE CLINTON ADMINISTRATION IS TAKING WHICH THEY SAY RESULTED NOT FROM SOME CAREFULLY WORKEDOUT STAFF SCENARIO BUT FROM A ONEONONE DISCUSSION BETWEEN MR GORE AND PRESIDENT CLINTON ABOUT THREE WEEKS AGO WHITE HOUSE STRATEGISTS DISCUSSED THE IDEA OF A DEBATE BETWEEN MR PEROT AND FORMER CHRYSLER CORP CHAIRMAN LEE IACCOCA BUT THE IDEA FADED WHEN THEY RECEIVED WORD THAT MR IACCOCA WASN'T INTERESTED THEN LAST WEEK JACK QUINN MR GORE'S CHIEF OF STAFF REVIVED THE IDEA WITH THE VICE PRESIDENT IN THE IACCOCA ROLE MR QUINN DISCUSSED THE NOTION WITH WHITE HOUSE COUNSELOR DAVID GERGEN WHO ENDORSED IT AND MR GORE BROACHED IT WITH THE PRESIDENT WHO GAVE THE GOAHEAD EVEN THE FORMAT OF THE SESSION A CONVERSATION WITH CABLE NEWS NETWORK'S LARRY KING AND PHONEIN CALLERS WORKS AGAINST MR GORE THE VICE PRESIDENT'S DISADVANTAGE IS THAT PEROT HAS HAD A LONG TIME TO FASHION SOUNDBITES SAYS KATHLEEN HALL JAMIESON DEAN OF THE UNIVERSITY OF PENNSYLVANIA'S ANNENBERG SCHOOL OF COMMUNICATIONS EVEN IF MR GORE KNOWS HIS STUFF ON NAFTA SHE SAYS HE MAY NOT GET THE BLOCK OF TIME TO LAY OUT HIS CASE MOREOVER THE CHOICE OF MR GORE THE PRIVILEGED SON OF A SENATOR WHO WAS EDUCATED AT SOME OF THE NATION'S FINEST SCHOOLS DOES LITTLE TO COUNTER MR PEROT'S ELITISTSVSWORKINGPERSON RHETORIC AND MR GORE DIDN'T EXACTLY COVER HIMSELF WITH DEBATING GLORY IN HIS CAMPAIGN FACEOFF WITH VICE PRESIDENT DAN QUAYLE LAST YEAR CLINTON STRATEGISTS HOPE TO MAKE AN ASSET OF MR GORE'S LOWKEY MANNER WHICH THEY SAY COMPARES FAVORABLY WITH MR PEROT'S APPROACH THE SOUNDBITE ADVANTAGE GOES TO PEROT BUT THE SUBSTANCE ADVANTAGE GOES TO GORE SAYS PAUL BEGALA A POLITICAL ADVISER TO MR CLINTON MR GORE IS STABLE AND STEADY HE SAYS WHILE MR PEROT IS UNHINGED GIVEN MR PEROT'S DECLINING STANDINGS IN PUBLICOPINION POLLS WHITE HOUSE AIDES SAY MR GORE OUGHT TO BE ABLE TO COUNTER SOME OF WHAT THEY SEE AS THE TEXAN'S FAULTY ARGUMENTS AT WORST THEY SAY THE JOINT APPEARANCE WILL NEITHER BOOST NOR HARM THE PRONAFTA CAUSE BUT JIM JONTZ THE FORMER INDIANA CONGRESSMAN WHO NOW HEADS AN ANTINAFTA GROUP CALLED THE CITIZENS TRADE CAMPAIGN SAYS THE ENTIRE MOVEMENT AGAINST THE ACCORD IS ENERGIZED BY THE DEBATE EVEN THOSE ELEMENTS THAT AREN'T CLOSE TO MR PEROT IN ADDITION TO MR GORE PRONAFTA FORCES HAVE ROLLED OUT ANOTHER SPOKESMAN BILL GATES THE CHAIRMAN OF MICROSOFT CORP WHO WILL APPEAR IN A NEW PRONAFTA TELEVISION ADVERTISEMENT PROCLAIMING THAT NAFTA WILL ALLOW HIGHTECH COMPANIES LIKE OURS TO INCREASE SALES IN MEXICO AND INCREASE JOBS IN THE US THE REAL BATTLEGROUND THOUGH REMAINS THE ONEMEMBERATATIME APPEAL BY THE PRESIDENT HIMSELF ON MONDAY MR CLINTON MET WITH SEVERAL UNDECIDED LAWMAKERS AND WAS SCHEDULED TO HAVE DINNER WITH MORE OF THEM MONDAY NIGHT AIDES EXPECT SEVERAL HOUSE MEMBERS TO ANNOUNCE THEIR SUPPORT FOR NAFTA BEFORE THE LONG VETERANS DAY WEEKEND FOR ALL THE HOOPLA OVER THE GOREPEROT APPEARANCE THE WHITE HOUSE IS TRYING TO MAINTAIN AN AIR OF NONCHALANCE MR GORE IS READING BUFFING UP ON NAFTA AND TALKING TO MEMBERS OF HIS STAFF NOTHING TOO FORMAL SAYS WHITE HOUSE PRESS SECRETARY DEE DEE MYERS PRESIDENT CLINTON ISN'T ASSOCIATING HIMSELF TOO CLOSELY WITH THE EVENT PERHAPS IN CASE IT BACKFIRES THE VICE PRESIDENT WANTED TO DO IT AND THE PRESIDENT SUPPORTS HIM IN THAT MS MYERS SAYS SEE RELATED ARTICLE PEROT'S PROGRESS FROM NAFTA BACKER TO NEMESIS SHOWS POLITICAL BENEFITS OF BASHING THE PACT WSJ NOV 9 1993 9311090060 931109 POLITICS & POLICY PEROT'S PROGRESS FROM NAFTA BACKER TO NEMESIS SHOWS POLITICAL BENEFITS OF BASHING THE PACT BY GERALD F SEIB AND BOB DAVIS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON ROSS PEROT NOW THE VERY PERSONIFICATION OF OPPOSITION TO THE NORTH AMERICAN FREE TRADE AGREEMENT DIDN'T ALWAYS CONSIDER IT SUCH A BAD IDEA IN EARLY 1992 HE APPEARED BEFORE THE EL PASO TEXAS CHAMBER OF COMMERCE AND ENTHUSIASTICALLY IMPLORED THE LOCALS TO GEAR UP FOR NAFTA WHICH HE SAID COULD BE A BIG BOON FOR THE AREA AND AS RECENTLY AS LAST YEAR'S PRESIDENTIAL CAMPAIGN MR PEROT SEEMED UPBEAT IN HIS SIGNATURE CAMPAIGN BOOK UNITED WE STAND HE SAID THE TREATY THEN BEING NEGOTIATED PRESENTS AN EXCITING OPPORTUNITY FOR BOTH THE US AND MEXICO BUT BY LAST FRIDAY WHILE HE WAS DICKERING WITH THE WHITE HOUSE OVER THE SCHEDULING OF TONIGHT'S TELEVISED DEBATE WITH VICE PRESIDENT AL GORE THE PEROT MESSAGE WAS HARSHLY NEGATIVE THE AMERICAN PEOPLE KNOW THIS IS A TERRIBLE DEAL FOR OUR COUNTRY WHAT'S HAPPENED ALONG THE WAY MR PEROT INSISTS IT'S SIMPLY A CASE OF THE DEVIL BEING IN THE DETAILS WHEN WE FIRST HEARD ABOUT NAFTA AND HEARD ABOUT THE IDEA OF A FAIRTRADE AGREEMENT WE DIDN'T HAVE THE DETAILS SAYS SHARON HOLMAN A PEROT SPOKESWOMAN THESE WERE KEPT FROM US OTHERS OF COURSE SEE A MORE CLEVER CASE OF POLITICAL OPPORTUNISM AT WORK BUT WHATEVER MOTIVATES MR PEROT THE EVOLUTION OF HIS POSITION PROVIDES A POWERFUL LESSON ABOUT THE POLITICS OF NAFTA THE TEXAS BILLIONAIRE DOESN'T PORTRAY HIMSELF AS A FOE OF OPENING UP TRADE WITH MEXICO AND CANADA HE SAYS IN FACT THAT HE COULD SUPPORT A DIFFERENT RENEGOTIATED NAFTA THOUGH HIS HEATED RHETORIC ABOUT THE DANGERS OF LINKING UP WITH LOWWAGE COUNTRIES MAKES IT DIFFICULT TO IMAGINE A SPECIFIC TREATY WITH MEXICO HE WOULD ENDORSE RATHER HIS PRINCIPAL CHARGE AGAINST THE TRADE AGREEMENT IS THAT IT'S AN INSIDER'S DEAL FILLED WITH SWEETHEART PROVISIONS TO BENEFIT THE NATION'S POLITICAL AND ECONOMIC ELITES AT THE EXPENSE OF THE WORKING STIFFS NOT IN THE LOOP AND IT IS THIS ANTIESTABLISHMENT ARGUMENT MORE THAN MR PEROT'S PERSONAL PRESTIGE OR ANY SERIOUS ECONOMIC ANALYSIS THAT IS ANIMATING MUCH OF THE OPPOSITION THAT MR PEROT REPRESENTS TONIGHT'S DEBATE WITH MR GORE COMES AMID CLAIMS BY HOUSE DEMOCRATIC WHIP DAVID BONIOR OF MICHIGAN A NAFTA FOE THAT HIS FORCES HAVE AS MANY AS 219 NO VOTES ONE MORE THAN NEEDED BUT BONIOR AIDES SAY THEY AREN'T CLAIMING VICTORY UNTIL THEY HAVE A MORE COMFORTABLE MARGIN AND ANTINAFTA LABOR FORCES SAY THEIR COUNT IS STILL AT 215 THE CLINTON ADMINISTRATION DOUBTS EVEN THAT COUNT I UNDERSTAND THE IDEA OF TRYING TO CREATE MOMENTUM IN SAYING THIS IS A DONE DEAL SAYS TREASURY SECRETARY LLOYD BENTSEN BUT SAYS OF THE CLAIMS I CERTAINLY DON'T BELIEVE THEM WITH ALL THE FORCES ARRAYED AGAINST NAFTA IT'S FAR FROM CLEAR THAT MR PEROT IS REALLY DRIVING THE POPULIST CASE UNION OPPOSITION HAS HAD FAR MORE IMPACT IN CONGRESS LAWMAKERS AGREE THE WHITE HOUSE IN FACT IS TAKING THE GAMBLE OF GOING HEADTOHEAD WITH MR PEROT BECAUSE IT FIGURES THAT HIS DECLINING POPULARITY RATINGS MEAN THAT THE ANTINAFTA CAUSE IS HURT THE MORE HE IS IDENTIFIED WITH IT STILL THERE'S LITTLE DOUBT THAT MR PEROT'S EVOLUTION INTO THE COUNTRY'S TOP NAFTABASHER HAS DONE HIM AND HIS ORGANIZATION SOME GOOD IT'S A WAY TO ORGANIZE HIS PEOPLE SAYS RALPH NADER THE CONSUMER ACTIVIST AND ANOTHER LEADING NAFTA FOE HIS PEOPLE HAVEN'T BEEN UNIFIED BY A THEME THEY HAVE BEEN GOING OFF ON DIFFERENT STRATEGIES THIS IS A HIGHVISIBILITY AND UNIFIED THEME FOR HIS FOLLOWERS MR PEROT HAS HELD 92 RALLIES THIS YEAR NAFTABASHING HAS BEEN A STAPLE ITEM AT VIRTUALLY ALL OF THEM AND THE SOLE ISSUE AT NEARLY A DOZEN FROM NOW UNTIL THE NAFTA VOTE IN THE HOUSE OF REPRESENTATIVES SCHEDULED FOR NOV 17 MR PEROT'S UNITED WE STAND ORGANIZATION HAS SOME KIND OF NAFTA EVENT SCHEDULED IN VIRTUALLY EVERY STATE EVERY DAY MS HOLMAN SAYS THERE SEEMS LITTLE DOUBT THAT MR PEROT HAS USED HIS NAFTA CAMPAIGN AND HIS FREQUENTLY BROADCAST 30MINUTE SPECIAL ON IT TO DRUM UP MEMBERSHIP IN UNITED WE STAND THE ORGANIZATION WON'T DISCLOSE ANY INFORMATION ABOUT THE SIZE OF ITS MEMBERSHIP THOUGH AND MS HOLMAN INSISTS THAT CLINTON ADMINISTRATION MISCUES DRIVE UP MEMBERSHIP FASTER THAN NAFTA HAS THE PRESIDENT GETS A HAIRCUT ON THE RUNWAY AND OUR MEMBERSHIPS GO THROUGH THE ROOF SHE SAYS GIVEN THE RISING TIDE OF ANGRY VOTERS IN THE COUNTRY NAFTA MAY BE AS IMPORTANT TO MR PEROT BECAUSE IT HAS LINKED HIM AND HIS ORGANIZATION WITH OTHERS FROM PEANUT FARMERS TO ENVIRONMENTALISTS WITH WHOM HE OTHERWISE WOULD HAVE LITTLE IN COMMON PEROT IS BUILDING HIS ORGANIZATION AROUND NAFTA SAYS DON WEINER AN ANTINAFTA ORGANIZER IN THE MIDWEST BY VIRTUE OF THIS DEBATE HE IS DEVELOPING A RATHER EDUCATED CORE MEMBERSHIP EDUCATED ABOUT ECONOMIC ISSUES AND TRADE ISSUES ALL THIS IS STRIKING CONSIDERING THE RATHER MILD VIEWS ABOUT NAFTA MR PEROT ONCE HELD WHEN HE APPEARED IN EL PASO TO ADDRESS THE BUSINESS GROUP EARLY LAST YEAR HE CLEARLY LEFT HIS AUDIENCE WITH THE IMPRESSION HE WAS A NAFTA BOOSTER FOR THE 1000PLUS PEOPLE WHO WERE IN THAT ROOM WE WERE ABSOLUTELY SHOCKED WHEN HE CAME OUT AGAINST THE AGREEMENT BASED ON WHAT HE SAID THAT NIGHT RECALLS BOB COOK VICE PRESIDENT FOR THE LOCAL CHAMBER OF COMMERCE DURING THE PRESIDENTIAL DEBATES WITH MR CLINTON AND THENPRESIDENT BUSH LAST FALL MR PEROT BEGAN CHARGING THAT NAFTA WHICH HAD JUST BEEN FINISHED AND PUBLISHED WOULD CREATE A GIANT SUCKING SOUND AS JOBS FLOWED TO MEXICO BUT EVEN AFTER THE ELECTION WHEN HE FIRST TESTIFIED ON NAFTA BEFORE CONGRESS IN MARCH MR PEROT WAS DIPLOMATIC IN TONE AND HELD OPEN THE POSSIBILITY OF SUPPORTING A REVISED ACCORD BY HIS NEXT TESTIMONY A MONTH LATER THOUGH HE HAD WIPED AWAY ANY AMBIGUITY LAST TIME I TESTIFIED ON THIS AGREEMENT THEY SAID I WASN'T SPECIFIC ENOUGH HE SAID THEN SO LET ME TRY TO BE SPECIFIC LET ME TRY TO BE SPECIFIC JUST DON'T DO IT IT'S NOT IN OUR COUNTRY'S BEST INTEREST HIS ANTINAFTA CAMPAIGN REACHED AN APOGEE OF SORTS ON SUNDAY WHEN HE PUBLICLY PROCLAIMED THAT HIS LIFE HAD BEEN THREATENED BY A MAFIALIKE GROUP FAVORING THE NAFTA ACCORD THOUGH THERE IS LITTLE TO SUBSTANTIATE THE SERIOUSNESS OF THE THREAT AND FEDERAL LAWENFORCEMENT OFFICIALS SAID THEY HAD NO INFORMATION THAT WOULD LEAD THEM TO TAKE THE THREAT SERIOUSLY MR PEROT'S OFFICE YESTERDAY RELEASED A COPY OF A FEDERAL BUREAU OF INVESTIGATION MESSAGE THAT SAID THE INFORMATION CAME FROM A SPANISHSPEAKING CALLER WHO CLAIMED TO BE RELAYING INFORMATION PICKED UP IN A MEXICAN PRISON MR PEROT'S STRONG ANTINAFTA POSITION IS PARTICULARLY STRIKING CONSIDERING THAT PEROT SYSTEMS CORP THE COMPUTER COMPANY THAT MR PEROT FOUNDED AND IN WHICH HE HAS A MAJOR STAKE REGULARLY TROLLS FOR BUSINESS IN MEXICO WHILE A PEROT FAMILY VENTURE RUN BY HIS SON HAS LAUDED THE ACCORD I DON'T KNOW WHAT'S DRIVING HIM SAYS ORSON SWINDLE A LEADER IN MR PEROT'S PRESIDENTIAL CAMPAIGN WHO'S EMBARKING ON A SERIES OF RADIO INTERVIEWS TO PROMOTE NAFTA BUT I DO BELIEVE HE THINKS HE'S RIGHT SEE RELATED ARTICLE WHILE GORE FACES PITFALLS IN DEVISING HAPPILYEVERNAFTA END TO PEROT DEBATE WSJ NOV 9 1993 9311090059 931109 MARKETING & MEDIA ADVERTISING CHRYSLER IS FIRST SPONSOR IN TEST OF FLEDGLING INTERACTIVE NETWORK BY KEVIN GOLDMAN BETTING THAT INTERACTIVE TELEVISION IS JUST DOWN THE ROAD CHRYSLER SIGNED AN AGREEMENT TO BECOME THE FIRST SPONSOR OF INTERACTIVE NETWORK A FLEDGLING COMPANY THAT DELIVERS INTERACTIVE SPORTS AND GAMESHOW PROGRAMS TO HOME VIEWERS INTERACTIVE NETWORK HOPES TO SIGN A TOTAL OF 10 CHARTER ADVERTISERS FOR A YEARLONG TEST ALTHOUGH THE MOUNTAIN VIEW CALIF COMPANY DECLINES TO BE SPECIFIC ABOUT OTHER POTENTIAL PARTICIPANTS COMPANIES PRODUCING SOFT DRINKS ATHLETIC SHOES BEER AND FAST FOOD ARE KICKING THE TIRES AND MAY SIGN DEALS ACCORDING TO DAVID B LOCKTON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF INTERACTIVE NETWORK NEITHER CHRYSLER NOR INTERACTIVE NETWORK WOULD COMMENT ON THE FEE THE AUTO MAKER WILL PAY FOR THE TEST WHILE THE NUMBER OF INTERACTIVE NETWORK SUBSCRIBERS IS MINUTE ONLY 3300 HOUSEHOLDS IN THREE MARKETS AS OF DEC 31 1992 THE RESULTS OF THE TEST COULD BE SIGNIFICANT IN DEVELOPING NEWFANGLED ADVERTISING THAT ALLOWS VIEWER PARTICIPATION THE SPONSORS IN THE TEST WILL SHARE THE RESULTS WITH ONE ANOTHER AND FOR THAT REASON EACH SPONSOR WILL BE GRANTED EXCLUSIVITY IN ITS OWN CATEGORY WHILE THERE WILL BE ONLY ONE AUTO MAKER IN THE TEST RIVALS WILL BE ABLE TO BUY TIME ONCE INTERACTIVE ADVERTISING IS UP AND RUNNING THIS ISN'T THE FIRST TIME INTERACTIVE NETWORK HAS BOASTED ABOUT ITS NEW ADVERTISING TECHNOLOGY IN AUGUST 1992 THE COMPANY SAID IT HAD PLANS TO ALLOW VIEWERS TO PARTICIPATE IN CONTESTS WITHIN COMMERCIALS BUT YESTERDAY MR LOCKTON SAID HIS COMPANY HAD TO REFINE THAT TECHNOLOGY BECAUSE IT WAS EASY FOR VIEWERS TO CHEAT ON GAMES PLACED IN INTERACTIVE ADS THE COMPANY DID RUN AN INTERACTIVE TEST IN JANUARY WITH PEPSICO ON THE SUPER BOWL AN AD THAT A PEPSI SPOKESMAN SAYS PLEASED THE COMPANY IN FACT HE SAYS PEPSI REMAINS KEENLY INTERESTED IN INTERACTIVE ADVERTISING NEVERTHELESS GARRETT MYERS A VICE PRESIDENT OF VISUAL SERVICES INC AN AUTOMOTIVE MARKETING COMPANY IN BLOOMFIELD HILLS MICH REMAINS SKEPTICAL INTERACTIVE ADS SHOW STEADY PROGRESS BUT THERE IS NOTHING MAJOR OR PROFOUND OUT THERE SAYS MR MYERS WHO REPRESENTS VOLKSWAGEN OF AMERICA AUDI AND GENERAL MOTORS' CADILLAC AND CHEVROLET DIVISIONS THE REALITY IS THAT THERE ARE NO MAJOR INTERACTIVE TELEVISION PROJECTS I CAN PLACE MY CLIENTS ON HE SAYS INTERACTIVE NETWORK'S SUBSCRIBER BASE IN SACRAMENTO CALIF SAN FRANCISCO/SAN JOSE CALIF AND CHICAGO IS TOO SMALL COUNTERS MR LOCKTON HE'S JUST MAD BECAUSE HE GOT LOCKED OUT AND CHRYSLER IS IN WITH INTERACTIVE ADVERTISING A COUCH POTATO MAY HAVE THE OPTION IN A FEW YEARS OF DOING MORE THAN LOUNGING IN FRONT OF THE TUBE THE CONSUMER MAY BE ABLE TO SELECT FROM A MYRIAD OF CHOICES WITHIN A COMMERCIAL IN THE CASE OF CHRYSLER THAT COULD MEAN THE COMPANY MAY DISPATCH A SALESMAN FOR A TEST DRIVE TO A VIEWER'S HOME AFTER THE VIEWER SIMPLY PRESSES A BUTTON OR A CATALOG COULD BE SENT INSTANTLY TO A PRINTER PLACED BESIDE A TELEVISION SET IN THE VIEWER'S LIVING ROOM WANT MORE INFORMATION ON A CHRYSLER VEHICLE PUSH A BUTTON AND A VIDEOTAPE COULD BE MAILED TO YOUR HOUSE INTERACTIVE ADVERTISING ALSO MAY INVOLVE A TWIST THAT ATTEMPTS TO DRAW A CONSUMER'S ATTENTION TO A SPECIFIC COMMERCIAL VIEWERS MAY BE ASKED TO RESPOND TO ELEMENTS IN A SPOT IN ORDER TO RECEIVE SAY A 2 COUPON FOR EXAMPLE SAYS MR LOCKTON A VIEWER MAY BE ASKED TO HIT A BUTTON WHEN A DOG BARKS IN THE COMMERCIAL SO THAT THE VIEWER CAN GET THE COUPON SHADES OF PAVLOV'S DOG OF ALL MAJOR ADVERTISERS CHRYSLER IS PERHAPS THE MOST AGGRESSIVE NOT ONLY IS IT THE FIRST TO SIGN ON WITH INTERACTIVE NETWORK BUT CHRYSLER ALSO IS EXPECTED TO ANNOUNCE SHORTLY THAT IT'S A MAJOR PARTICIPANT IN AN INTERACTIVE TELEVISION TEST BY TIME WARNER THE TEST IS SCHEDULED TO BEGIN IN APRIL WITH MORE THAN 4000 HOUSEHOLDS IN ORLANDO FLA INTERACTIVE IS ON ITS WAY AND IT'S COMING IN A HURRY SAYS JIM JULOW CHRYSLER'S DIRECTOR OF MARKETING OPERATIONS CURRENTLY CHRYSLER AND OTHER ADVERTISERS CAN TARGET ONLY THOSE WHO ARE POTENTIAL CUSTOMERS IN OTHER WORDS EVERYBODY THAT'S EXPENSIVE WHEN JUST A FRACTION OF THE GENERAL POPULATION IS INTERESTED IN A CERTAIN COMMERCIAL MR LOCKTON SAYS ONE IN EVERY 200 PEOPLE AT A GIVEN TIME IS INTERESTED IN BUYING A NEW CAR THUS CHRYSLER IS PAYING TENS OF MILLIONS OF DOLLARS TO REACH 199 PEOPLE WHO ARE TUNING OUT MR JULOW SAYS CHRYSLER WANTS TO ACCELERATE ITS PLANS TO MOVE BEYOND SHOTGUN ADVERTISING AND INSTEAD ENTER A LEVEL OF INTERACTIVITY WHERE WE CAN HAVE A DIALOGUE WITH THE CONSUMER AT LEAST ONE MARKETING EXECUTIVE BELIEVES ADVERTISING WILL BE BETTER OFF ONCE INTERACTIVITY COMES OF AGE WE'LL BE TALKING TO CONSUMERS ON A ONETOONE BASIS MORE THAN EVER BEFORE SAYS PETER SEALEY FORMER SENIOR VICE PRESIDENT AND DIRECTOR OF GLOBAL MARKETING FOR COCACOLA MR SEALEY LAST WEEK WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF INTERACTIVE NETWORK EFFECTIVE JAN THAT WILL MEAN ADVERTISERS WILL HAVE TO PRODUCE MORE RIVETING COMMERCIALS HE CONTINUES BECAUSE IT IS ASKING SOMETHING OF THE VIEWER MORE THAN SIMPLY WATCHING AN AD OF COURSE SOME VIEWERS ANNOYED ENOUGH AS IT IS BY ADVERTISING MAY GROW MORE RESENTFUL IF ASKED TO DO SOMETHING WITH A REMOTE CONTROL OTHER THAN CHANGE CHANNELS THAT'S WHY THE 12MONTH TEST WILL BE SO USEFUL ACCORDING TO BOTH CHRYSLER AND INTERACTIVE NETWORK RIGHT NOW SAYS MR LOCKTON WE HAVE QUESTIONS AND NO CONCRETE ANSWERS AS TO HOW MUCH A VIEWER WILL WANT TO PARTICIPATE THIS TEST HOPEFULLY SHOULD PROVIDE SOME ANSWERS ACCOUNT SEIKO CORP OF AMERICA A UNIT OF HATTORI SEIKO CO OF TOKYO TAPPED OMNICOM GROUP'S DDB NEEDHAM NEW YORK TO HANDLE THE 10 MILLION SEIKO WATCH ACCOUNT PREVIOUSLY AT SAATCHI & SAATCHI CO'S AC&R ADVERTISING DDB BESTED AMMIRATI & PURIS NEW YORK THE OTHER FINALIST IN THE PITCH NEW ADS ARE EXPECTED IN THE SPRING COLT 45 G HEILEMAN BREWING CO TAPPED THE RICHARDS GROUP DALLAS TO HANDLE ITS COLT 45 MALT LIQUOR ACCOUNT PREVIOUSLY AT DEUTSCH NEW YORK STILL UP FOR GRABS ARE A NUMBER OF OTHER BEER ACCOUNTS WHICH HAD BEEN SPLIT BETWEEN DEUTSCH AND ANOTHER NEW YORK AGENCY MESSNER VETERE BERGER MCNAMEE SCHMETTERER HEILEMAN PUT THE BRANDS WITH COMBINED BILLINGS OF 20 MILLION INTO REVIEW IN AUGUST LINTAS INTERPUBLIC GROUP'S LINTAS ANNOUNCED AN EXPECTED RESTRUCTURING IN THE WAKE OF ITS LOSS LAST MONTH OF THREE BIG ACCOUNTS DIET COKE IBM PERSONAL COMPUTERS AND MOLSON WITH COMBINED BILLINGS OF ABOUT 120 MILLION LINTAS SAID IT WOULD CLOSE ITS L2 UNIT CREATED TO SAVE THE IBM PERSONALCOMPUTER ACCOUNT ALL 20 L2 EMPLOYEES WILL REMAIN AT LINTAS THE AGENCY SAID KEVIN O'NEILL AN EXECUTIVE VICE PRESIDENT AND GROUP CREATIVE DIRECTOR WAS NAMED CHIEF CREATIVE OFFICER SUCCEEDING TONY DEGREGORIO WHO RESIGNED EARLIER LAST MONTH TWO EXECUTIVE VICE PRESIDENTS WERE ASSIGNED TO ADDITIONAL POSTS SHERI COLONEL WAS NAMED CHIEF STRATEGIC OFFICER AND STEVE NORCIA WAS SELECTED DIRECTOR OF BUSINESS DEVELOPMENT FOOTE CONE FOOTE CONE & BELDING COMMUNICATIONS CHICAGO REPORTED THIRDQUARTER NET INCOME OF 33 MILLION OR 30 CENTS A SHARE UP 24 OVER THE YEAREARLIER NET INCOME OF 27 MILLION OR 25 CENTS A SHARE REVENUE INCREASED 8 TO 963 MILLION FCB SAID IT WANTS TO SELL THE PRODUCTION PORTION OF ITS KRUPP/TAYLOR DIRECT MAIL OPERATIONS 9311090058 931109 STATE DEPARTMENT'S CLIFTON WHARTON RESIGNS AS THE AGENCY'S NO 2 OFFICIAL BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HIGHLY CRITICIZED CLINTON FOREIGNPOLICY TEAM SUFFERED ITS FIRST CASUALTY WITH THE RESIGNATION OF CLIFTON WHARTON THE NO 2 OFFICIAL AT THE STATE DEPARTMENT HIS DEPARTURE IS UNLIKELY TO SATISFY CRITICS WHO HAVE DEMANDED THAT BOTH SECRETARY OF STATE WARREN CHRISTOPHER AND DEFENSE SECRETARY LES ASPIN STEP DOWN AFTER EMBARRASSING SETBACKS IN SOMALIA HAITI AND BOSNIA MR WHARTON HAD NO ROLE IN MAKING THESE POLICIES FOCUSING HIS ATTENTION ALMOST EXCLUSIVELY ON ADMINISTRATIVE ISSUES MR WHARTON IS ALSO THE HIGHESTRANKING BLACK AT THE STATE DEPARTMENT AN INSTITUTION NOT KNOWN FOR ITS DIVERSITY AND ANY SUGGESTION THAT HE IS BEING USED AS A SCAPEGOAT COULD PROVE EMBARRASSING IN A STATEMENT MR WHARTON IMPLIED THAT HE HAD BEEN FORCED OUT OF HIS POSITION AFTER BEING SUBJECTED TO THE CLASSIC WASHINGTON PRACTICE OF SUSTAINED ANONYMOUS LEAKS TO THE MEDIA THEREFORE I DECIDED TO RESIGN RATHER THAN PERMIT MY EFFECTIVENESS TO BE FURTHER ERODED MR WHARTON WHO RAN A FORTUNE 500LISTED PENSION FUND BEFORE BEING NAMED DEPUTY SECRETARY OF STATE HAS BEEN CRITICIZED BY DEPARTMENT OFFICIALS FOR FAILING TO BE A STRONG ADMINISTRATOR THE KEY REASON FOR HIS DEPARTURE OFFICIALS SAID WAS MR CHRISTOPHER'S DESIRE TO OPEN THE NO 2 SPOT IN THE DEPARTMENT TO A MORE DYNAMIC AND EXPERIENCED DIPLOMAT PREFERABLY SOMEONE WHO COULD IMPROVE POLICY MAKING WHILE POLISHING THE DEPARTMENT'S TARNISHED REPUTATION OFFICIALS SAID MR CHRISTOPHER HAS YET TO SELECT A SUCCESSOR THE RUMOR MILL IS TURNING OUT A LONG LIST OF POSSIBLE CANDIDATES INCLUDING US AMBASSADOR TO RUSSIA THOMAS PICKERING RUSSIA POLICY CZAR STROBE TALBOTT LONGTIME DIPLOMAT AND PRESIDENT OF THE CARNEGIE ENDOWMENT MORTON ABRAMOWITZ FORMER UN AMBASSADOR DONALD MCHENRY AND ASSISTANT SECRETARY OF STATE FOR EAST ASIA WINSTON LORD IN A STATEMENT PRESIDENT CLINTON SAID HE ACCEPTED MR WHARTON'S RESIGNATION WITH REGRET AND HAILED HIS LEADERSHIP ON REFORM OF THE AGENCY FOR INTERNATIONAL DEVELOPMENT AND HIS IMPORTANT WORK ON THE REORGANIZATION OF THE STATE DEPARTMENT REP FRANK MCCLOSKEY D IND WHO SHOOK UP THE FOREIGNPOLICY ESTABLISHMENT LAST MONTH WHEN HE PUBLICLY CALLED FOR MR CHRISTOPHER'S RESIGNATION SAID MR WHARTON'S DEPARTURE WAS UNLIKELY TO SOLVE ANY PROBLEMS MY ADVICE TO MR CHRISTOPHER WOULD BE TO LOOK IN THE MIRROR HE IS THE MAJOR PART OF A SEVERE PROBLEM IN THE ADMINISTRATION HE SAID SUNDAY ON NBCTV'S MEET THE PRESS PRESIDENT CLINTON DEFENDED HIS FOREIGNPOLICY DECISIONS BUT GAVE ONLY A LUKEWARM ENDORSEMENT TO HIS TOP FOREIGNPOLICY ADVISERS WHEN ASKED IF MR CHRISTOPHER AND MR ASPIN WOULD KEEP THEIR JOBS MR CLINTON SAID I DON'T THINK THAT THE PRESIDENT SHOULD EVEN DISCUSS THAT SORT OF THING THOSE PERSONNEL THINGS WHITE HOUSE SPOKESWOMAN DEE DEE MYERS SOUGHT TO CORRECT THAT IMPRESSION YESTERDAY SAYING THAT THE PRESIDENT HAS FULL CONFIDENCE IN HIS FOREIGNPOLICY TEAM ON THE BIG ISSUES IN PARTICULAR HE BELIEVES HIS TEAM HAS DONE SOME IMPORTANT AND EXTRAORDINARY THINGS 9311090057 931109 BUSINESS BRIEF CONTINENTAL CAN CO THIRDQUARTER NET FELL 45 CURRENCY TRANSLATION IS CITED CONTINENTAL CAN CO SAID THIRDQUARTER NET INCOME FELL 45 BECAUSE OF THE IMPACT OF FOREIGNCURRENCY TRANSLATIONS AND THE WEAK EUROPEAN ECONOMY THE SYOSSET NY MAKER OF CONTAINERS AND PACKAGING MATERIALS SAID PROFIT FOR THE QUARTER FELL TO 13 MILLION OR 42 CENTS A SHARE FROM 23 MILLION OR 75 CENTS A SHARE A YEAR EARLIER SALES FELL 13 TO 131 MILLION WITH 70 OF THE DECLINE TIED TO FOREIGNCURRENCY TRANSLATIONS WEAK ECONOMIES IN EUROPE HURT THE COMPANY'S OPERATIONS IN GERMANY FRANCE AND SPAIN CHAIRMAN AND CHIEF EXECUTIVE DONALD J BAINTON SAID MR BAINTON HOWEVER SAID THE COMPANY EXPECTS IMPROVED RESULTS IN 1994 AS THE EUROPEAN ECONOMY RECOVERS AND AS RESULTS IMPROVE SIGNIFICANTLY AT ITS US PLASTICBOTTLE SUBSIDIARY PLASTIC CONTAINER INC DUE TO LOWER COSTS AND HIGHER SALES 9311090056 931109 BUSINESS BRIEF SANDOZ LTD US UNIT TO RESTRUCTURE POSSIBLY ELIMINATING JOBS SANDOZ PHARMACEUTICAL CORP SAID IT IS STUDYING WAYS TO RESTRUCTURE PARTS OF THE COMPANY IN AN EFFORT TO MEET STRICTER HEALTHPOLICY INITIATIVES BEING PROPOSED BY THE CLINTON ADMINISTRATION THE ANNOUNCEMENT BY THE EAST HANOVER NJ COMPANY FOLLOWS MOVES BY A HOST OF DRUG COMPANIES TO CONTROL COSTS AND STREAMLINE BUSINESS PRACTICES IN RESPONSE TO INCREASED GOVERNMENT REGULATIONS AND MANAGED COMPETITION THE CHANGES COULD INCLUDE VOLUNTARY EARLY RETIREMENTS ELIMINATION OF SOME POSITIONS AND STAFF RETRAINING SANDOZ WHICH HAS 4000 EMPLOYEES IN THE US SAID IT COULD NOT ESTIMATE HOW MANY POSITIONS WOULD BE AFFECTED UNTIL THE STUDY IS COMPLETED BUT ADDED THAT THE IMPACT OF JOB CUTS WOULD BE LESS THAN IN OTHER DRUG COMPANIES SANDOZ IS A UNIT OF SWISS SANDOZ LTD 9311090055 931109 TECHNOLOGY BRIEF INTERNATIONAL BUSINESS MACHINES PC SUBSIDIARY CUTS PRICES ON SOME OF ITS PS/2 SERVERS INTERNATIONAL BUSINESS MACHINES CORP'S IBM PC CO UNIT REDUCED PRICES BY AS MUCH AS 26 FOR SELECT MODELS OF HIGHPERFORMANCE PERSONAL SYSTEM/2 SERVERS AND SAID IT PLANS TO BUILD AND SHIP MORE OF THE LINE OF SERVERS THIS QUARTER THAN IN ALL OF 1992 THE SERVERS ACT AS DATA PUMPS THAT CAN TRANSFER DATA BACK AND FORTH ACROSS NETWORKS OF COMPUTERS THE MODELS WITH THE PRICE CHANGES RANGE FROM THE PS/2 SERVER 85 REDUCED TO 2800 FROM 3800 TO THE PS/2 SERVER 95 466 REDUCED TO 8665 FROM 11000 A SPOKESMAN SAID PRICES WERE REDUCED BECAUSE MANUFACTURING CAPABILITY COULD NOW MATCH DEMAND IBM IS BASED IN ARMONK NY AND THE IBM PC UNIT IS BASED IN SOMERS NY 9311090054 931109 WORLD MARKETS TOKYO PRICES RISE A BIT AFTER GLOBAL SELLOFF BUT SHARES LOSE GROUND IN LONDON FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP FOLLOWING FRIDAY'S GLOBAL STOCKTRADING DEBACLE TOKYO PRICES GAINED MONDAY ENDING FOUR SESSIONS OF LOSSES IN DEALINGS MAINLY INFLUENCED BY FUTURES AND BY BARGAIN PURCHASES BY FINANCIAL INSTITUTIONS BUT LONDON SHARES LOST GROUND AS INVESTORS REMAINED UNCONVINCED THAT THE ROUT WAS OVER FRANKFURT EQUITIES STRUGGLED TO MAKE UP SOME OF LAST WEEK'S LOSSES BUT ENDED SLIGHTLY LOWER MANY BOURSES OPENED WITH SOLID GAINS BUT ANXIETY PERVADED LEAVING A JUMBLE OF SMALL DECLINES AND GAINS FOR THE DAY WITH SOME EXCEPTIONS SUCH AS HONG KONG WHERE PRICES SURGED AS BUYERS SNAPPED UP BARGAINS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11101 UP 037 REFLECTING HIGHER MARKETS IN ALL REGIONS FINANCIAL SERVICES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12789 UP 318 OR 26 WITH EVERGO INTERNATIONAL HOLDINGS OF HONG KONG POSTING A 98 GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT 16290 DOWN 808 OR 47 WITH KUMPULAN GUTHRIE OF MALAYSIA SLIDING 85 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH PLUMMETED 35933 POINTS FRIDAY ROSE 3470 TO 1862516 IN TRADING TUESDAY IN TOKYO THE NIKKEI FELL 4310 POINTS TO CLOSE THE MORNING SESSION AT 1858206 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 240 MILLION SHARES DOWN SHARPLY FROM 4338 MILLION SHARES IN THE PREVIOUS SESSION LOSERS LED GAINERS 484471 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH LOST 2323 POINTS FRIDAY ROSE 296 TO 158381 THE NIKKEI WHICH SAGGED TO AN INTRADAY LOW OF 1838084 ESCAPED FROM FINISHING BELOW WHAT MARKET PARTICIPANTS CONSIDER CRUCIAL SUPPORT AT 1859145 THE INDEX'S CLOSING LEVEL AT THE END OF THE LATEST FISCAL YEAR ON MARCH 31 ARBITRAGERS CONTINUED TO UNLOAD STOCK POSITIONS INTERMITTENTLY INTO TOKYO'S AFTERNOON RALLY IN AN ATTEMPT TO CAPTURE SPREADS BETWEEN THE SPOT AND FUTURES PRICES THIS FORCED THE NIKKEI TO FALL BELOW THE FISCAL YEAREND LEVEL BUT THE INDEX RECOUPED SOME LOSSES AS ARBITRAGE SELLING PRESSURE CALMED AND FINANCIAL INSTITUTIONS BOUGHT ON PRICE DECLINES PUBLIC PENSION FUNDS WHICH KEPT A LOW PROFILE LAST WEEK AFTER PROVIDING A PILLAR OF SUPPORT FOR THE MARKET RECENTLY RETURNED TO BUYING DURING THE MORNING BUT BOWED OUT WHEN THE NIKKEI DIVED IN AFTERNOON DEALINGS SOME SHARES GOT A REPRIEVE FROM LIQUIDATION OF MARGIN POSITIONS BOUGHT ON CREDIT BY INDIVIDUAL INVESTORS THAT CONTRIBUTED TO THE MARKET'S SLIDE LAST WEEK IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DECLINED 80 POINTS TO 30776 AFTER A 77POINT LOSS IN A TWODAY SELLOFF LAST WEEK THE FT 30STOCK INDEX FELL 67 POINTS TO 23253 VOLUME WAS 5577 MILLION SHARES COMPARED WITH 7733 MILLION SHARES IN THE PREVIOUS SESSION AN OPENING RALLY PUSHED PRICES UP ALMOST 11 POINTS ON THE 100STOCK INDEX BUT THIS PROVED SHORTLIVED AND THE GAUGE AT ONE POINT SANK AS MUCH AS 205 POINTS BEFORE RECOVERING FROM THE LOWS THE MARKET FOUND LITTLE SUPPORT FROM WALL STREET'S SUBDUED RISE IN EARLY TRADING AND IGNORED BRITISH PRODUCERPRICE DATA WHICH SHOWED INFLATIONARY PRESSURES UNDER CONTROL SOME INVESTORS WERE LYING LOW TRYING TO AVOID MORE LOSSES ON THE THEORY THAT PRICES HAD RISEN SUBSTANTIALLY PRIOR TO LAST WEEK'S CORRECTION AND MIGHT FALL FURTHER IN FRANKFURT THE DAX 30STOCK INDEX WHICH PLUNGED 5005 POINTS FRIDAY SLIPPED 175 TO 201081 THE INDEX OPENED HIGHER MOVED UP TO A SESSION PEAK OF 203132 THEN GRADUALLY DECLINED TO 200536 BEFORE REBOUNDING SLIGHTLY THE MARKET LACKED POSITIVE NEWS AND INVESTORS WERE CAUTIOUS AHEAD OF EARNINGS REPORTS THIS WEEK BY GERMAN CHEMICAL COMPANIES WHICH WILL WEIGH HEAVILY IN HOW THE MARKET PERCEIVES THE ECONOMY IS RECOVERING IN PARIS STOCKS OPENED STRONGLY DROPPED THEN PARTLY REBOUNDED TO END A BIT HIGHER THE MARKET MOOD WAS NERVOUS FOLLOWING FRIDAY'S GLOBAL LOSSES AND YESTERDAY'S WEAKNESS IN LONDON AND FRANKFURT SEPARATELY THE PARIS EXCHANGE ON DEC 8 WILL LAUNCH TWO INDEXES ONE WITH 120 STOCKS AND THE OTHER WITH 250 INCLUDING ALL THOSE IN THE 120SHARE INDEX THESE ARE DESIGNED TO STIMULATE INTEREST IN STOCKS THAT AREN'T IN THE BENCHMARK CAC 40 IN AMSTERDAM PRICES FELL AGAIN EXTENDING THE CORRECTION PRESSURED BY A WEAKER US DOLLAR AND LOWER STOCK PRICES ABROAD IN MILAN AN EARLY TECHNICAL REBOUND WILTED AND STOCKS ENDED SLIGHTLY HIGHER IN TRADING THAT WAS THINNED BY CONTINUED POLITICAL STRAINS IN ITALY'S GRAFT SCANDAL IN STOCKHOLM A STRONG OPENING ALSO FIZZLED AND PRICES SLIPPED RISING US INTEREST RATES CONTINUED TO TROUBLE THE SWEDISH MARKET AS WORRIES MOUNTED THAT HIGHER US YIELDS WOULD TOUCH OFF A GENERAL DECLINE IN EUROPEAN BOURSES IN ZURICH FOLLOWING LAST WEEK'S 36 LOSS STOCKS RECOVERED AND ENDED HIGHER IN A TECHNICAL CORRECTION AS INVESTORS IGNORED THE SOFTER DOLLAR IN SYDNEY SHARE PRICES SLUMPED 12 FINISHING LOWER FOR THE FIFTH CONSECUTIVE SESSION ON A CONTINUATION OF PROFITTAKING THAT STARTED LAST THURSDAY BUT IN HONG KONG AFTER SHEDDING 67 IN THE PAST THREE TRADING DAYS SHARES RALLIED 18 THE BRITISH COLONY'S BOURSE PLUNGED IN EARLY DEALINGS HURT BY RUMORED CHINESE ECONOMIC MOVES AGAINST BRITISH COMPANIES IN POSSIBLE RETALIATION FOR PROPOSED HONG KONG DEMOCRATIC REFORMS AND BY THE WEAKNESS IN HONG KONG STOCKS THAT TRADED FRIDAY IN LONDON BUT PRICES REBOUNDED AS BARGAIN HUNTERS MOVED IN ON A PERCEPTION THE BOTTOM WAS NEARING AND THE MARKET ADVANCED BROADLY IN SINGAPORE FOLLOWING A HUGE INTRADAY DROP SHARES RECOVERED SOMEWHAT TO LEAVE BLUE CHIPS MIXED BUT BROADER MEASURES DOWN FIRMLY NEWS OF FORCED SELLING BY BROKERAGE FIRMS TURNED THE MARKET AROUND THIS SELLING OF CLIENTS' STOCKS IS INSTITUTED FROM TIME TO TIME TO REDUCE FINANCIAL EXPOSURE OF DEALERS AND DEALING AGENTS OF BROKERAGE HOUSES THE RESULTING BARGAIN HUNTING REDUCED THE EXTENT OF THE MARKET'S RETREAT IN SEOUL EQUITIES POSTED SOLID GAINS ON SURGING OPTIMISM THAT THE MARKET'S BUYING BASE WILL BE BROADENED BY MORE FUNDS ARRIVING AS INTEREST RATES FALL BUT IN MANILA PRICES SLUMPED 25 ON WEAKNESS IN THE TELECOMMUNICATIONS SECTOR AND IN WELLINGTON SHARES PLUNGED 63 ON UNCERTAINTY ABOUT WHO WILL GOVERN NEW ZEALAND AFTER THE RULING PARTY IN SATURDAY'S ELECTIONS LOST ITS PARLIAMENTARY MAJORITY BY ONE SEAT AMONG CORPORATE DEVELOPMENTS IN FRANKFURT LUFTHANSA CLIMBED 3 MARKS OR 2 TO 155 MARKS 9150 THE AIRLINE'S PARENT COMPANY POSTED THIRDQUARTER PRETAX PROFIT OF 145 MILLION MARKS 856 MILLION CITING INCREASES IN PASSENGERS AND FREIGHT BUT IT DIDN'T PROVIDE GROUP FINANCIAL DATA FOR THE LATEST OR THE YEAREARLIER PERIODS IN THE SECOND QUARTER LUFTHANSA EARNED 24 MILLION MARKS FOR THE FIRST NINE MONTHS THE PRETAX LOSS NARROWED TO 76 MILLION MARKS FROM 262 MILLION MARKS A YEAR EARLIER 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 9311090053 931109 SO WHY DID SCULLEY JUMP TO SPECTRUM IT'S IN THE NUMBERS PAY PACKAGE FOR EXCHAIRMAN OF APPLE COMPUTER SHOCKS COMPENSATION SPECIALISTS BY JOHN J KELLER AND ANNE NEWMAN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK JUST ABOUT EVERYONE IN THE COMPUTER INDUSTRY HAS BEEN WONDERING HOW A TINY WIRELESS COMPANY CALLED SPECTRUM INFORMATION TECHNOLOGIES INC MANAGED TO LURE APPLE COMPUTER INC CHAIRMAN JOHN SCULLEY TO SIGN ON AS ITS CHAIRMAN YESTERDAY THEY GOT AN ANSWER MR SCULLEY RECEIVED A MILLIONDOLLAR SALARY AND OPTIONS TO BUY 18 MILLION SHARES OVER FIVE YEARS AT AN INDICATED PROFIT OF 72 MILLION BASED ON YESTERDAY'S CLOSING PRICE THAT IS WHAT MR SCULLEY AGREED TO RECEIVE OCT 18 IN RETURN FOR HEADING UP A LITTLEKNOWN UPSTART THAT IS IN NEED OF SOME REAL IMAGEPOLISHING EXECUTIVE COMPENSATION EXPERTS WERE SHOCKED BY THE SIZE OF MR SCULLEY'S PACKAGE FIRST REPORTED IN USA TODAY AFTER ALL IT WILL BE PAID BY A COMPANY THAT HAS NEVER TURNED AN ANNUAL PROFIT IN ITS 10YEAR HISTORY AND WHOSE REVENUES BARELY SCRAPE 125 MILLION IT'S WAY OUT OF THE BALLPARK FOR COMPANIES IN THAT RANGE OF REVENUES SAID CAROL BOWIE EDITOR OF EXECUTIVE COMPENSATION REPORTS A NEWSLETTER THAT TRACKS COMPENSATION ADDED GRAEF CRYSTAL A WELLKNOWN COMPENSATION EXPERT NOW INSTEAD OF PAYING FOR PERFORMANCE IT'S PAY FOR REPUTATION EVEN THOUGH THE NUMBERS MR SCULLEY LEFT AT APPLE WERE TERRIBLE MR CRYSTAL OFFERED EXAMPLES OF A SLEW OF OTHER EXECUTIVES WHO RUN MUCH LARGER MORE PROSPEROUS TECHNOLOGY COMPANIES IN RETURN FOR A COMPARATIVE PITTANCE TO WHAT MR SCULLEY WILL PULL DOWN AT SPECTRUM YOU WANT ANDY GROVE AT INTEL MR CRYSTAL SAID HE GETS 350000 A YEAR JERRY JUNKINS AT TEXAS INSTRUMENTS GETS 600000 A YEAR MR SCULLEY MAINTAINED YESTERDAY THAT SPECTRUM SHAREHOLDERS AREN'T TAKING A HIT FOR HIS COMPENSATION IF THE COMPANY IS VERY SUCCESSFUL THEN SO WILL I BE HE SAID IF NOT THEN IT DOESN'T COST SHAREHOLDERS ANYTHING THAT IS A BIG IF SPECTRUM HAS A LOSSLADEN RECORD AND MORE THAN 90 OF ITS REVENUE COMES FROM COMPUTER DISTRIBUTION RATHER THAN FROM THE WIRELESS DEVICE AND PATENTS THAT ARE SUPPOSED TO BE THE CENTERPIECE OF THE COMPANY SPECTRUM'S BUSINESS ISN'T EXACTLY SEXY IT HAS SEVERAL PATENTS COVERING THE TRANSMISSION OF DATA OVER WIRELESS NETWORKS AND A DEVICE THAT INCORPORATES ITS DESIGNS WHILE THE MARKET FOR SUCH DEVICES COULD BE HUGE NUMEROUS MANUFACTURERS SUCH AS MOTOROLA INC ARE READYING THEIR OWN DEVICES WHICH THEY SAY WILL WORK JUST AS WELL AS SPECTRUM'S THE COMPANY MOREOVER IS EMBROILED IN A COUPLE OF LEGAL CHALLENGES TO ITS PATENTS FROM MODEM SUPPLIERS IT WAS SMACKED DOWN LAST MAY BY AMERICAN TELEPHONE & TELEGRAPH CO WHICH SAID SPECTRUM WAS EXAGGERATING THE POTENTIAL GAINS OF A PATENTLICENSING AGREEMENT THAT AT&T HAD SIGNED SPECTRUM YESTERDAY SAID IT AGREED TO SETTLE A CLASSACTION LAWSUIT CHARGING THE COMPANY WITH INFLATING CLAIMS ABOUT ITS PATENTLICENSING DEAL WITH AT&T SPECTRUM AGREED TO PAY 15 MILLION IN CASH ALMOST ALL OF WHICH IS COVERED BY INSURANCE AND ISSUE 750000 COMMON STOCK WARRANTS TO BUY SPECTRUM STOCK AT OR ABOVE MARKET PRICES SPECTRUM'S SHARES JUMPED IMMEDIATELY UPON THE NEWS LAST MONTH THAT IT HAD SIGNED UP THE FORMER APPLE CHAIRMAN AND WITH SPECTRUM SHARES CURRENTLY TRADING ABOUT 4 A SHARE OVER MR SCULLEY'S OPTION PRICE HE ALREADY HAS A PAPER PROFIT OF ABOUT 72 MILLION HE CAN EXERCISE OPTIONS ON THREE MILLION SHARES IMMEDIATELY WHICH WOULD TRANSLATE INTO AN INSTANT PROFIT OF ABOUT 12 MILLION AT CURRENT PRICES SO FAR A SPOKESMAN SAID HE HASN'T EXERCISED ANY OPTIONS MR SCULLEY'S OPTIONS IF FULLY EXERCISED WOULD GIVE HIM ROUGHLY 25 OF THE COMPANY MR SCULLEY 54 YEARS OLD MAY EXERCISE OPTIONS ON THE REMAINING 15 MILLION SHARES IN ANNUAL INCREMENTS OF 375 MILLION SHARES OVER THE NEXT FOUR YEARS BEGINNING OCTOBER 1994 ON THE NASDAQ STOCK MARKET YESTERDAY SPECTRUM SHARES CLOSED AT 1025 UP 625 CENTS MR SCULLEY COULDN'T RESIST LETTING OTHER INDUSTRY BRASS KNOW ABOUT HIS COMPENSATION PACKAGE AT AN INDUSTRY DINNER A FEW WEEKS AGO WHEN HIS DINING COMPANIONS ASKED ABOUT HIS MOTIVATION FOR JOINING SPECTRUM PEOPLE WHO WERE AT THE DINNER SAID MR SCULLEY RESPONDED THAT HIS DEAL WITH SPECTRUM WOULD MAKE HIM RICH PEOPLE WERE PUZZLED BY HIS MOVE ESPECIALLY WHEN HE WAS SUPPOSED TO BE ONE OF THE FINALISTS FOR HEADING IBM SAID ONE EXECUTIVE BUT HE SAID MR SCULLEY RESPONDED IF THE STOCK GOES UP 6 OR 8 I'M WORTH 80 MILLION BUCKS HAVING BENEFITED FROM MR SCULLEY'S IMAGE SPECTRUM YESTERDAY ANNOUNCED SEVERAL OTHER MOVES FOUNDER AND FORMER CHAIRMAN DANA VERRILL RESIGNED FROM THE COMPANY AND THE BOARD AFTER SAYING HE WOULD DEPART WHEN MR SCULLEY JOINED THE COMPANY ALSO RESIGNING WERE JOHN RULE A FORMER VICE PRESIDENT AND KATHERINE BACHAND FORMER INVESTOR RELATIONS REPRESENTATIVE THE COMPANY CALLED THE DEPARTURES AMICABLE SPECTRUM ALSO APPOINTED CHRISTOPHER P FRANCO A FORMER ATTORNEY WITH THE NEW YORK LAW FIRM OF KELLEY DRYE & WARREN AS VICE PRESIDENT AND GENERAL COUNSEL IN OTHER MOVES THE COMPANY SIGNED A LICENSING AGREEMENT WITH US ROBOTICS INC A SKOKIE ILL MAKER OF COMPUTER MODEMS AND AGREED TO ACQUIRE YIELD TECHNIGLOBAL THE NEW YORK ENGINEERING AND CONSULTING CONCERN HAS ABOUT 12 MILLION IN ANNUAL REVENUE MOSTLY FROM MOBILE CELLULAR COMMUNICATIONS 9311090052 931109 INTERNATIONAL JAPANESE POLITICAL FIGURE SAYS HE TOOK KAJIMA GIFTS TOKYO GOVERNMENT POWER BROKER ICHIRO OZAWA SAID MONDAY THAT HE TOOK CAMPAIGN CONTRIBUTIONS FROM A SCANDALTAINTED CONSTRUCTION COMPANY BUT SAID THE TRANSACTION WAS PROPER EVERYTHING WAS APPROPRIATELY PROCESSED IN ACCORDANCE WITH THE LAW MR OZAWA SAID AT A NEWS CONFERENCE HE REFUSED HOWEVER TO GIVE DETAILED INFORMATION ABOUT THE DONATIONS THOUGH HE HOLDS NO FORMAL CABINET POST MR OZAWA IS CONSIDERED ONE OF THE MOST INFLUENTIAL MEMBERS OF JAPAN'S RULING COALITION THE NEWS FIRST REPORTED IN THE JAPANESE PRESS FRIDAY THAT HE HAD RECEIVED MONEY FROM KAJIMA CORP WAS A PUBLICRELATIONS BLOW TO PRIME MINISTER MORIHIRO HOSOKAWA WHO WAS ELECTED ON A PLATFORM OF CLEANING UP CORRUPTION MR OZAWA SAID KAJIMA GAVE FIVE MILLION YEN 46210 TO SEVERAL OF MY ORGANIZATIONS SEVERAL KAJIMA EXECUTIVES HAVE BEEN ARRESTED IN RECENT MONTHS ON SUSPICIONS OF BRIBING LOCAL GOVERNMENT OFFICIALS FOR PUBLICWORKS CONTRACTS JAPANESE LAW PROHIBITS POLITICIANS FROM RECEIVING MORE THAN 15 MILLION YEN FROM AN INDIVIDUAL OR CORPORATION HOWEVER SEPARATE GIFTS ARE ALLOWED TO A CANDIDATE'S VARIOUS CAMPAIGN GROUPS 9311090051 931109 TECHNOLOGY BRIEF HEWLETTPACKARD CO MULTIMEDIA PC INTRODUCED MIDRANGE PRICES ARE SLASHED HEWLETTPACKARD CO PALO ALTO CALIF UNVEILED ITS FIRST MULTIMEDIA PERSONAL COMPUTER PRICED AGGRESSIVELY LOW AND SIMULTANEOUSLY SLASHED PRICES 12 ON ITS MIDRANGE DESKTOP PCS THE NEW MACHINE THE HP VECTRA 486/25VL MODEL 170MM IS PRICED AT 1649 AND INCLUES FOUR MEGABYTES ABOUT FOUR MILLION BYTES OF RANDOMACCESS MEMORY PLUS A 170 MEGABYTE HARDDISK DRIVE THE SYSTEM'S MULTIMEDIA CAPABILITIES INCLUDE GRAPHICS AUDIO AND CDROM SEPARATELY THE COMPANY SAID IT REDUCED PRICES ON ITS MIDRANGE DESKTOP PC BY AS MUCH AS 12 AND ENHANCED SEVERAL EXISTING SYSTEMS WITH LARGER MASSSTORAGE OPTIONS AND INCREASED MEMORY THE MAKER OF MEASUREMENT AND COMPUTATION PRODUCTS SAID IT EXPECTS TO INTRODUCE A HIGHEND PC BUNDLED WITH MICROSOFT CORP'S WINDOWS NT OPERATING SYSTEM IN DECEMBER 9311090050 931109 HEARD ON THE STREET DOW THEORY BRINGS CHEER TO BULLISH INVESTORS BUT THEIR SMILES MIGHT BE SLIGHTLY PREMATURE BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOW THEORY ON STOCKMARKET TRENDS IS LIKE CLASSICAL MUSIC EVEN PEOPLE WHO LISTEN TO IT DON'T NECESSARILY PICK UP ON ALL THE NUANCES SOME MARKET ANALYSTS CLAIM THAT THE CLASSIC DOW THEORY HAS FLASHED A BUY SIGNAL BECAUSE BOTH THE DOW JONES INDUSTRIAL AVERAGE AND THE DOW JONES TRANSPORTATION AVERAGE RECENTLY HIT NEW HIGHS AT ABOUT THE SAME TIME THE DOUBLE RECORD IS A RECONFIRMATION AS DOW THEORISTS SAY THAT THE STOCK MARKET'S BULLISH TREND IS STILL IN PLACE BUT WAS THIS REALLY A BUY SIGNAL NOT YET A BUY SIGNAL WON'T BE FLASHED UNLESS THE MARKET DECLINES SHARPLY TO BRING PRICES BACK TO SANER LEVELS THE MESSAGE ACCORDING TO SOME VETERAN STOCK WATCHERS HOLD ON IF YOU'RE ALREADY IN THE MARKET BUT DON'T PLUNGE IN YET IF YOU'RE NOT YOU MAY BE HEARING MORE ABOUT SUCH THEORIES AS INVESTORS AND ANALYSTS FISH FOR ANY CLUE AT ALL ABOUT THE MARKET'S DIRECTION NO ONE REALLY KNOWS WHY THE STOCK MARKET REMAINS SO STRONG OR HOW LONG IT CAN STAY UP THERE THE MORE GRAY HAIR YOU GET THE MORE YOU REALIZE THAT YOU REALLY DON'T KNOW WHERE THE TOP OF A MARKET IS SAYS WILLIAM LEFEVRE SENIOR MARKET ANALYST AT EHRENKRANTZ KING NUSSBAUM NEW YORK WHO WROTE ABOUT THE DOW THEORY IN HIS WEEKLY MARKET MEMO LAST WEEK THAT'S WHEN I LOOK AT SOMETHING LIKE THE DOW THEORY IT JUST GIVES YOU THE DIRECTION IT DOESN'T WORK EVERY TIME NOTHING DOES THE LOGIC BEHIND THE NEARLY 100YEAROLD DOW THEORY WHICH TRACES TO CHARLES DOW COFOUNDER OF THIS NEWSPAPER'S PARENT COMPANY DOW JONES IS THAT INDUSTRIAL COMPANIES MAKE THE GOODS AND TRANSPORTATION COMPANIES SHIP THEM SO IF BOTH AVERAGES ARE RISING THE TWO MAJOR ASPECTS OF THE ECONOMY ARE IN SYNC AND THE STOCK MARKET SHOULD RISE THE RECENT RECORD IN THE 20STOCK DOW TRANSPORTS WAS MAINLY DUE TO SURGES IN FEDERAL EXPRESS 21 OF THE GAIN UAL 16 AND CSX 16 SAY ANALYSTS AT BIRINYI ASSOCIATES IN GREENWICH CONN THE RECENT PEAKS BY BOTH AVERAGES ENDED A SIXMONTH STRING IN WHICH THE TRANSPORTS DRAGGED BEHIND WHILE THE INDUSTRIALS SET 16 NEW HIGHS THE DOW THEORY HAS WORKED WELL ENOUGH OVER THE DECADES FOR INVESTORS TO PAY ATTENTION STILL CONTRARY TO WHAT IS OFTEN REPORTED IN THE PRESS JOINT NEW HIGHS ARE NOT A BUY' SIGNAL ACCORDING TO DOW THEORY FORECASTS A NEWSLETTER THAT HAS EMBRACED THE THEORY SINCE 1946 ANYONE WHO MIGHT HAVE GOTTEN A SURGE OF BULLISHNESS LAST WEEK FROM THE SUPPOSED BUY SIGNAL WAS SLAPPED DOWN BY THE INDUSTRIAL AVERAGE'S TWODAY DECLINE OF 7266 POINTS WEDNESDAY AND THURSDAY THE AVERAGE SCRATCHED OUT A 447POINT GAIN YESTERDAY AND NOW STANDS 4974 POINTS BELOW THE RECENTLY ACHIEVED RECORD CHARLES CARLSON EDITOR OF THE NEWSLETTER BASED IN HAMMOND IND SAYS INVESTORS ALREADY IN THE MARKET SHOULD FEEL A COMFORT LEVEL BECAUSE OF THE RECORDS JUST HIT THE TREND IS STILL UP HE SAYS WHAT THE THEORY IS TELLING YOU IS THAT THE PRIMARY BULL MARKET THAT HAS BEEN IN PLACE FOR TWOPLUS YEARS IS STILL IN PLACE IF YOU'RE TRYING TO STAY ON THE RIGHT SIDE OF THAT TREND YOU SHOULD CONTINUE TO HOLD YOUR STOCK BUT MAKE NO MISTAKE ALL THE ELEMENTS ARE IN PLACE FOR A NEARTERM MARKET DECLINE MR CARLSON ADDS HE IS BOTHERED BY THE SLUGGISH ACTION OF UTILITY STOCKS AND SAYS ANY BUYING SHOULD BE DONE VERY SELECTIVELY AT THIS POINT HE WARNS THAT OVER A THREEWEEK TO FOURWEEK PERIOD SOON THE INDUSTRIALS COULD PULL BACK 150 POINTS WHICH WOULD QUALIFY AS A GOOD SECONDARY CORRECTION EXPLAINS MR CARLSON THAT'S THE TIME TO BUY WHEN YOU HAVE A RECONFIRMATION AND THEN A PULLBACK OR SECONDARY CORRECTION WHAT YOU WANT TO DO IS LOOK FOR THE MARKET TO PULL BACK AFTER A RECONFIRMATION AND LAST WEEK'S DROP WASN'T STEEP ENOUGH TO QUALIFY IN HIS VIEW MOST MARKET ANALYSTS EVEN LONGTERM BULLS AGREE THAT THE MARKET IS PRIMED FOR A DECLINE ESPECIALLY NOW THAT LONGTERM INTEREST RATES HAVE TICKED UPWARD WE HESITATE A BIT TO THROW ALL CAUTION TO THE WIND AND EXTEND OUR MARGIN POSITIONS BASED SOLELY ON THE DOW THEORY RECONFIRMATION SAYS TECHNICAL MARKET ANALYST ALAN SHAW OF SMITH BARNEY SHEARSON COMFORTED BY THE DOW THEORY CONFIRMATION MR LEFEVRE ENVISIONS THE MARKET WORKING ITSELF HIGHER ALBEIT WITH THE USUAL PULLBACKS THE DOW JONES INDUSTRIALS ROSE 56 IN THE SIX MONTHS FOLLOWING THE PREVIOUS DOUBLE HIGH IN APRIL IF THE INDUSTRIALS RISE A SIMILAR AMOUNT DURING THE NEXT SIX MONTHS THE INDEX WOULD BE IN SIGHT OF 4000 HE NOTES HOPEFULLY 9311090049 931109 BUSINESS BRIEF CIT GROUP HOLDINGS INC PACT IS SET TO BUY BUSINESS FROM A BARCLAYS SUBSIDIARY CIT PLANS TO ACQUIRE BARCLAYS COMMERCIAL CORP CHARLOTTE NC A PROVIDER OF CREDIT RECEIVABLES COLLECTION AND ACCOUNTSRECEIVABLE BOOKKEEPING SERVICES TERMS WEREN'T DISCLOSED THE ACQUISITION IS PART OF A SELECTIVE EXPANSION OF CIT IN ITS CORE BUSINESSES CIT PRESIDENT AND CHIEF EXECUTIVE OFFICER ALBERT R GAMBER SAID AND WILL GIVE CIT A MAJOR PRESENCE IN THE SOUTHEASTERN US CIT GROUP HOLDINGS INC A HOLDING COMPANY WITH ASSETS VALUED AT 13 BILLION IS OWNED BY DAIICHI KANGYO BANK LTD A TOKYO BANK AND NEW YORK'S CHEMICAL BANKING CORP BARCLAYS PLC IS A BANKING AND FINANCIALSERVICES CONCERN BASED IN LONDON 9311090048 931109 HARVARD PROPOSES CHANGES IN ITS MBA PROGRAM CAMBRIDGE MASS HARVARD BUSINESS SCHOOL UNVEILED A SERIES OF PROPOSALS THAT IF APPROVED WOULD LEAD TO A SIGNIFICANT RESTRUCTURING OF ITS RENOWNED MBA PROGRAM THE PROPOSALS CALL FOR A NEW EMPHASIS ON GROUP PROJECTS AND FIELD STUDY IN COMPANIES REDUCING THE SCHOOL'S TRADITIONAL RELIANCE ON CLASSROOM INSTRUCTION USING WRITTEN CASE STUDIES AMONG OTHER CHANGES THE PROPOSALS ALSO SUGGEST ADMITTING SOME STUDENTS WITH LESS WORK EXPERIENCE THAN THE FOUR YEARS THAT IS NOW TYPICAL OF APPLICANTS THIS WOULD MARK A MAJOR CHANGE FOR HARVARD WHICH HAS MOVED IN THE LAST DECADE TO INCREASE WORKEXPERIENCE REQUIREMENTS THE PROPOSALS DON'T MENTION A PREVIOUSLY REPORTED OPTION THAT HAD BEEN CONSIDERED TO ESTABLISH A ONEYEAR VERSION OF THE SCHOOL'S MBA PROGRAM WHICH RUNS TWO YEARS THE IDEA APPEARS TO HAVE BEEN TABLED FOR NOW THOUGH IT IS UNDERSTOOD TO BE SUPPORTED IN SOME QUARTERS AND COULD BE REVIVED THE PROPOSALS REFLECT THE WORK OF A SELECT GROUP OF BUSINESS SCHOOL FACULTY THE SCHOOL'S ENTIRE FACULTY WILL DISCUSS THE IDEAS OVER THE NEXT FEW MONTHS AND DECIDE HOW TO PROCEED JAMES CASH A PROFESSOR WHO LED THE PROGRAM REVIEW SAID MANY DETAILS REMAINED TO BE WORKED OUT AND FULL IMPLEMENTATION MIGHT TAKE SEVERAL YEARS 9311090047 931109 BUSINESS BRIEF EQUITABLE COS EARNINGS IN THIRD QUARTER REVERSE YEAREARLIER LOSS EQUITABLE COS REVERSED A YEAREARLIER LOSS AS RESULTS IN ITS INSURANCE UNIT CONTINUED TO IMPROVE EQUITABLE REPORTED THIRDQUARTER PROFIT OF 713 MILLION OR 32 CENTS A SHARE AGAINST A YEARAGO LOSS OF 364 MILLION PERSHARE PROFIT IS NOT AVAILABLE FOR THE THIRD QUARTER 1992 BECAUSE EQUITABLE WASN'T A PUBLIC COMPANY FOR THE ENTIRE PERIOD PRIORYEAR RESULTS INCLUDE 556 MILLION IN EXPENSES RELATED TO GOING PUBLIC REVENUE ROSE 135 TO 168 BILLION FROM 148 BILLION TROUBLED MORTGAGE LOANS DECLINED DURING THE QUARTER INSURANCE EARNINGS ROSE TO 214 MILLION FROM 174 MILLION LAST YEAR IMPROVED PROFIT MARGINS ON LIFE INSURANCE POLICIES HELP EXPLAIN THE INCREASE PROFIT FROM ITS INVESTMENT SERVICES SEGMENT WHICH INCLUDES RESULTS FROM THE DONALDSON LUFKIN & JENRETTE SECURITIES BROKERAGE FIRM AND ALLIANCE CAPITAL MANAGEMENT MONEYMANAGEMENT FIRM ROSE TO 569 MILLION FROM 47 MILLION A BIG FACTOR WAS SOARING REVENUE AT DONALDSON LUFKIN ON THE NEW YORK STOCK EXCHANGE YESTERDAY EQUITABLE ROSE 1125 TO 26375 9311090046 931109 US SEEKS TO FORCE AN END TO ARAB BOYCOTT OF ISRAEL WASHINGTON THE US TRIED TO INCREASE PRESSURE ON ARAB COUNTRIES TO HALT THEIR BOYCOTT OF ISRAEL BY ASKING THE US INTERNATIONAL TRADE COMMISSION TO INVESTIGATE THE EFFECTS OF THE BOYCOTT ON US COMPANIES US TRADE REPRESENTATIVE MICKEY KANTOR ASKED THE ITC TO COMPLETE THE STUDY WITHIN A YEAR IT IS MY STRONG HOPE THAT THE BOYCOTT WILL BE A RELIC OF HISTORY BY THAT TIME MR KANTOR SAID BUT IF IT ISN'T THE REPORT'S FINDINGS COULD FORM THE BASIS OF TRADE SANCTIONS AGAINST NATIONS THAT FOLLOW THE BOYCOTT WHICH BLACKLISTS COMPANIES THAT HAVE BUSINESS DEALINGS WITH ISRAEL MR KANTOR SAID THE REPORT SHOULD ANALYZE THE ECONOMIC COSTS OF THE BOYCOTT ON US BUSINESSES INCLUDING LOST SALES IN ARAB LEAGUE COUNTRIES OR ISRAEL AND LOST INVESTMENT OPPORTUNITIES IN EITHER ARAB OR ISRAELI MARKETS 9311090045 931109 BUSINESS BRIEF PORTLAND GENERAL CORP AVERAGE INCREASE OF 51 SOUGHT FOR ELECTRICITY RATES PORTLAND GENERAL ELECTRIC CO SAID IT FILED A REQUEST WITH THE OREGON PUBLIC UTILITIES COMMISSION TO INCREASE ELECTRIC RATES AN AVERAGE OF 51 BEGINNING JAN 1 1995 THE REQUEST IS DRIVEN MAINLY BY HIGHER COSTS OF PURCHASED POWER AND NATURAL GAS THE UTILITY SAID THE PROPOSED INCREASE WOULD RAISE REVENUE ABOUT 88 MILLION OVER TWO YEARS A SPOKESMAN SAID THE UTILITY IS A UNIT OF PORTLAND GENERAL CORP OF PORTLAND ORE UNDER THE PROPOSAL BILLS FOR RESIDENTIAL CUSTOMERS WOULD CLIMB ABOUT 78 AVERAGE RATES FOR COMMERCIAL AND INDUSTRIAL CUSTOMERS WOULD GROW ABOUT 32 PORTLAND GENERAL ROSE 50 CENTS TO 20 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE PROPOSED RATE INCREASE WAS ANNOUNCED AFTER THE MARKET CLOSED 9311090044 931109 BUSINESS BRIEF AMERICA ONLINE INC COMPUTER NETWORK TO CARRY MATRAHACHETTE MAGAZINES AMERICA ONLINE INC VIENNA VA SAID IT WILL CREATE EDITIONS OF THREE POPULAR SPECIALINTEREST MAGAZINES ON ITS ONLINE COMPUTER NETWORK AND ALSO MAKE IT EASIER FOR SUBSCRIBERS TO USE THE INTERNET ONLINE SERVICE THE COMPANY SAID IT REACHED AN ALLIANCE WITH HACHETTE FILIPACCHI MAGAZINES A UNIT OF FRENCH MAGAZINE PUBLISHER MATRAHACHETTE SA TO CREATE ONLINE VERSIONS OF ROAD & TRACK POPULAR PHOTOGRAPHY AND STEREO REVIEW MAGAZINES AMERICA ONLINE SAID IT CURRENTLY HAS MORE THAN 450000 SUBSCRIBERS MORE THAN 250000 OF WHOM WERE ADDED THIS YEAR AMERICA ONLINE ALSO UNVEILED AN INTERNET CENTER WHICH WILL GIVE ITS SUBSCRIBERS THE ABILITY TO SEND MAIL OVER THE INTERNET COMPUTER NETWORK A SPOKESWOMAN FOR AMERICA ONLINE SAID SUBSCRIBERS MORE EASILY CAN ACCESS INTERNET'S POPULAR DATABASES BY DECEMBER 9311090043 931109 BUSINESS BRIEF MCCAW CELLULAR COMMUNICATIONS ROGERS PACT WOULD EXPAND CLAIRCOM SERVICE TO CANADA MCCAW CELLULAR COMMUNICATIONS INC KIRKLAND WASH SAID ITS CLAIRCOM COMMUNICATIONS GROUP LP UNIT REACHED AGREEMENT WITH ROGERS CANTEL MOBILE COMMUNICATIONS OF CANADA TO EXTEND CLAIRCOM'S DIGITAL AIRTOGROUND COMMUNICATIONS SERVICE TO CANADA CLAIRCOM'S AIRONE SERVICE IS EXPECTED TO PROVIDE DIGITAL VOICE DATA AND FAX SERVICES TO AIRLINE PASSENGERS UNDER THE AGREEMENT CANTEL WOULD PURCHASE 10 OF CLAIRCOM PENDING US REGULATORY APPROVAL CLAIRCOM WOULD RECEIVE 20 INTEREST IN THE CANADIAN OPERATION UNDER AN OPERATING AGREEMENT CLAIRCOM'S AIRONE SERVICE WOULD BE OFFERED THROUGHOUT CANADA THROUGH A GROUND STATION NETWORK SLATED TO BEGIN CONSTRUCTION IN 1994 THE COMPANIES DIDN'T DISCLOSE THE VALUE OF THE TRANSACTION ROGERS CANTEL IS AN 80OWNED UNIT OF ROGERS COMMUNICATIONS INC 9311090042 931109 BUSINESS BRIEF MIDWAY AIRLINES NEW FREQUENTFLIER PROGRAM UNVEILED BY CHICAGO CARRIER MIDWAY AIRLINES A NEW CHICAGO CARRIER SET TO BEGIN FLYING MONDAY ANNOUNCED A FREQUENTFLIER PROGRAM THAT IT SAID WILL PARTIALLY REIMBURSE TRAVELERS WHO HELD UNUSED MILES FROM THE FORMER MIDWAY AIRLINES WHICH WENT OUT OF BUSINESS LAST YEAR THE NEW MIDWAY WILL CREDIT AS MANY AS 50000 MILES PER TRAVELER FROM THE FORMER PLAN EACH MILE FLOWN ON THE NEW MIDWAY WILL BE MATCHED BY A MILE FROM THE OLD PROGRAM THUS AFTER FLYING 5000 MILES A TRAVELER WOULD HAVE THE 10000MILE CREDIT NECESSARY TO REDEEM A FREE MIDWAY TICKET A SPOKESMAN ESTIMATED THAT 5000 TO 6000 CONSUMERS WITH OLD MIDWAY MILES MAY TAKE ADVANTAGE OF THIS OFFER WHICH EXPIRES AT THE END OF 1994 THE PROGRAM IS EXPECTED TO COST THE NEW AIRLINE AS MUCH AS 1 MILLION FOR OTHER CUSTOMERS MIDWAY'S FASTPASS MILEAGE PROGRAM WILL AFTER 30000 MILES FLOWN AWARD CUSTOMERS WITH A TICKET TO ALMOST ANY US CITY OR TO LONDON OR MADRID ON A NUMBER OF US CARRIERS 9311090041 931109 BUSINESS BRIEF WEYCO GROUP INC MANAGEMENTLED GROUP TO BUY REMAINING SHARES WEYCO GROUP INC MILWAUKEE SAID A MANAGEMENTLED GROUP THAT INCLUDES THE COMPANY'S PRINCIPAL SHAREHOLDERS HAS PROPOSED TO BUY THE SHARES IT DOESN'T ALREADY CONTROL FOR 34 APIECE OR 476 MILLION THE MANAGEMENT GROUP CURRENTLY CONTROLS ABOUT 23 OF THE COMPANY'S 164 MILLION COMMON SHARES AND ABOUT 70 OF WEYCO'S ABOUT 475000 CLASS B COMMON SHARES THE CLASS B SHARES DON'T TRADE PUBLICLY BUT HOLD 10FOR1 SUPERVOTING RIGHTS THE GROUP'S CURRENT HOLDINGS CONSTITUTE A MAJORITY OF THE VOTING POWER OF WEYCO SHAREHOLDERS THE COMPANY NOTED BUT AN OFFICIAL CAUTIONED THAT APPROVAL MUST COME FROM BOTH CLASSES OF STOCKHOLDERS WEYCO MAKES MEN'S SHOES ALTHOUGH THE NEWS WASN'T DISCLOSED UNTIL AFTER THE MARKET'S CLOSE YESTERDAY WEYCO'S THINLY TRADED SHARES WERE UP 275 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY AT 3050 THE COMPANY CHARACTERIZED THAT MOVE AS WITHIN STANDARD PARAMETERS MEMBERS OF THE GROUP INCLUDE THOMAS W FLORSHEIM THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND ROBERT FEITLER PRESIDENT AND CHIEF OPERATING OFFICER BEAR STEARNS & CO IS SERVING AS FINANCIAL ADVISER TO THE BUYOUT GROUP 9311090040 931109 BUSINESS BRIEF NINTENDO CO SOUTH AFRICAN COURT ORDERS SALES OF COUNTERFEITS TO CEASE NINTENDO OF AMERICA INC SAID THE SUPREME COURT OF SOUTH AFRICA RULED AGAINST 15 SOUTH AFRICAN RETAILERS AND DISTRIBUTORS OF COUNTERFEIT NINTENDO VIDEOGAME PRODUCTS IMPORTED FROM TAIWAN THE ACTION WAS BROUGHT BY NINTENDO'S PARENT COMPANY NINTENDO CO OF JAPAN AS PART OF A TWOYEAR CAMPAIGN OF LITIGATION AIMED AT QUASHING THE MARKET FOR VIDEO KNOCKOFFS WHICH DIVERTS AN ESTIMATED 2 BILLION A YEAR IN BUSINESS FROM NINTENDO AND ITS LAWFUL AFFILIATES NINTENDO SAID THE COURT IN PRETORIA SOUTH AFRICA ORDERED THE RETAILERS TO STOP SELLING THE COUNTERFEIT PRODUCTS AND SURRENDER THEIR ENTIRE INVENTORY OF SUCH GAMES TO NINTENDO THE COURT FURTHER ORDERED THE DEFENDANTS TO PAY SUBSTANTIAL BUT UNSPECIFIED COSTS AND ATTORNEYS' FEES TO NINTENDO 9311090039 931109 HEADING SOUTH MANY US BUSINESSES ENTERING MEXICO ARE SMALL ENTREPRENEURIAL WHILE NAFTA DEBATE RAGES OWNERS SEEK A NEW START IN SOME UNFILLED MARKETS THE SILVER LINING IN THE SMOG BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THOMAS HERSKOWITZ ONE OF THE NEW BREED OF AMERICAN BUSINESSPEOPLE IN MEXICO SUBSCRIBES TO WHAT HE CALLS THE CORTES THEORY OF ENTREPRENEURSHIP HE MEANS HERNANDO CORTES THE SPANISH CONQUISTADOR WHO TO BAR ANY RETREAT BURNED HIS SHIPS AFTER LANDING IN MEXICO 475 YEARS AGO FOR THE OPPORTUNITY TO COME HERE IN 1991 AND START UP A CHAIN OF FROZENYOGURT SHOPS MR HERSKOWITZ QUIT HIS VICE PRESIDENT JOB WITH A DALLAS HOTEL DEVELOPER SOLD HIS HOME AND UPROOTED HIS PREGNANT WIFE AND INFANT SON HE WENT INTO DEBT RISKING HE SAYS 130 OF ALL I OWN TO OBTAIN EXCLUSIVE MARKETING RIGHTS IN MEXICO FROM THE DALLAS FRANCHISER I CAN'T BELIEVE IT'S YOGURT LTD MR HERSKOWITZ HAS ENCOUNTERED PLENTY OF OBSTACLES BUT HIS INVASION OF THE MEXICAN MARKET IS OFF TO A STRONG START WITH 17 SHOPS OPERATING THROUGH LOCAL FRANCHISING AGREEMENTS WITH MEXICAN INVESTORS HE IS TWO YEARS AHEAD OF HIS ORIGINAL EXPANSION PLAN HIS CANCUN OUTLET IS ONE OF THE YOGURT FRANCHISER'S TOP FIVE SALES PERFORMERS WORLDWIDE SOMEDAY YOGURT WILL BE BIGGER HERE THAN FLAN IS MR HERSKOWITZ SAYS BIENVENIDOS TO THE SOUTHOFTHEBORDER BUSINESS RUSH EVEN AS THE US CONGRESS AGONIZES OVER THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT A NEW WAVE OF AMERICAN COMPANIES HAS ALREADY HIT MEXICO ONLY A FEW MULTINATIONAL MANUFACTURERS THE KIND THAT NAFTA OPPONENTS CONTEND WILL FLEE THE US TO EXPLOIT MEXICO'S LOW WAGES INSTEAD THE AMERICAN INVASION IS BEING LED BY ENTREPRENEURS PITCHING PRODUCTS AND SERVICES IN A VIRTUALLY UNTAPPED MARKET ALREADY A FATHER AND SON TEAM FROM TEXAS HAS BUILT UP ONE OF MEXICO'S LARGEST PERSONALCOMPUTER DEALERSHIPS SOME MIAMI HEALTHCLUB OWNERS HAVE KICKED OFF A CHAIN OF UPSCALE GYMNASIUMS A MICHIGAN BUSINESSMAN HAS ESTABLISHED A THRIVING SALES NETWORK FOR AMWAY HOME PRODUCTS AND A TINY CALIFORNIA COMPANY HAS STARTED BUILDING MEXICO'S FIRST HAZARDOUSWASTE PROCESSING PLANT MORE ENTREPRENEURS ARE ON THE WAY EAGER TO HELP LOCAL COMPANIES GO GLOBAL A DOZEN STATES FROM CONNECTICUT TO CALIFORNIA HAVE SET UP TRADE OFFICES IN MEXICO CITY TO GUIDE THE WIDENING ARRAY OF AMERICAN OPPORTUNITYSEEKERS CATTLE BREEDERS TIMESHARE PROMOTERS HEAVYEQUIPMENT SALESMEN NEW COLLEGE GRADUATES SHUT OUT OF THE JOB MARKET MIDDLE MANAGERS LAID OFF IN CORPORATE RESTRUCTURINGS A LOT OF PEOPLE CAUGHT IN SOME DEADEND SITUATION IN THE UNITED STATES DREAM OF COMING HERE AND BECOMING THE BIGGEST GUY IN TOWN SAYS NANCY PAEZ WHO RUNS LOUISIANA'S COMMERCIAL OFFICE HERE IT IS SELDOM THAT SIMPLE BESIDES THE RISK THAT CONGRESS MAY REJECT NAFTA AND PERHAPS SCUTTLE MEXICO'S ECONOMIC BOOM THE ENTREPRENEURS STRUGGLE WITH A SLEW OF INDIGENOUS PROBLEMS IF YOU'VE EVER SEEN THE DIVERS JUMPING OFF THE CLIFFS OF ACAPULCO YOU KNOW WHAT IT IS FOR AN AMERICAN TO START A BUSINESS IN MEXICO SAYS EVA KRAS A CONSULTANT WHO HELPS US COMPANIES ADAPT IT'S A LEAP OF FAITH GETTING THE FINANCING FOR SUCH A GAMBLE CAN BE DIFFICULT MR HERSKOWITZ SAYS US BANKS SLAMMED THE DOOR IN HIS FACE WHILE MEXICAN LENDERS WERE SEEKING INTEREST RATES IN EXCESS OF 25 HE THEN SOUGHT ANOTHER PRIVATE US INVESTOR TO BUY A MINORITY INTEREST IN THE MEXICAN FRANCHISE BUT HE WAS ABLE TO SELL ONLY A SMALL STAKE TO A TEXAS OIL WILDCATTER USED TO BETTING ON LONG SHOTS MR HERSKOWITZ'S SALVATION LAY IN THE FACT THAT THE YOGURT COMES FROM THE US MAKING HIM ELIGIBLE FOR LOWINTEREST CREDITS FROM THE US EXPORTIMPORT BANK ANOTHER MAJOR CHALLENGE FACING EXPATRIATE BUSINESSES IS TO FIND A SOLID CUSTOMER BASE IN A COUNTRY WITH PERCAPITA INCOME EQUAL TO ABOUT 3000 A YEAR A STUDY BY CONSULTING FIRM AT KEARNEY INC FOUND THAT ONLY ABOUT ONEFIFTH OF THE 85 MILLION MEXICANS ARE AFFLUENT ENOUGH TO MATCH FIRST WORLD CONSUMPTION TARGETING THIS ELITE CAN BE COMPLICATED AND COSTLY NOT LONG AGO AJ ALLEN WHO OWNS A NEW YORK IMPORTING COMPANY WAS CONSIDERING ESTABLISHING A FURNITUREIMPORTING SHOP IN MEXICO CITY KNOWING NOTHING ABOUT MEXICO I FIGURED I COULD PUT A STORE IN A GOOD NEIGHBORHOOD FOR WHAT IT COST TO DO IT IN DOWNTOWN ALBANY HE SAYS BUT HE DISCOVERED THAT THE PRICE OF COMMERCIAL REAL ESTATE IN WEALTHY MEXICO CITY NEIGHBORHOODS IS CLOSE TO THAT ON FIFTH AVENUE IN MANHATTAN IN INVESTIGATING OPPORTUNITIES HERE FOR A WEEK MR ALLEN ENCOUNTERED NUMEROUS OTHER PROBLEMS ONE WAS SEEMINGLY SENSELESS LAWS SUCH AS AN OLD ORDINANCE REQUIRING THAT A BUSINESS OBTAIN A SPECIAL PERMIT IF IT WISHED TO USE ENGLISH IN ITS NAME ANOTHER WAS THE RAVAGED STATE OF MEXICAN ROADS AND AIRPORTS WHICH CAUSED HIM TO QUESTION HIS ABILITY TO SUPPLY A MEXICO OUTLET CONSISTENTLY AFTER RETURNING HOME MR ALLEN DECIDED TO CONFINE HIS MEXICAN INVESTMENTS TO DABBLING IN THE STOCK MARKET I BASICALLY SAID ADIOS AMIGOS' HE SAYS MEXICO DOESN'T YET HAVE THE INFRASTRUCTURE TO DO BUSINESS OR TO DO ANYTHING MUCH ELSE FOR THAT MATTER BUT OTHER AMERICANS ARE FINDING THAT THE OPPORTUNITY LIES PRECISELY IN HELPING TO BUILD THAT INFRASTRUCTURE BLAINE ROBERTS HAS FILLED A NICHE CREATED BY MEXICO'S NOTORIOUSLY TARDY MAIL SERVICE THE CALIFORNIAN RECENTLY STARTED A MEXICAN COMPANY THAT AMONG OTHER THINGS OFFERS US POSTOFFICE BOXES FROM WHICH THE FIRM FORWARDS MAIL TO MEXICO AND DELIVERS IT TO CUSTOMERS SEEKING TO CIRCUMVENT THE MEXICAN POSTAL SYSTEM PAUL KINARD AN EXECUTIVE AT CORE FORM MACHINERY INC THINKS MONEY CAN BE MADE IN THE SQUATTER SETTLEMENTS THAT RING MEXICAN CITIES HE SAYS THE DENVER COMPANY'S SHORTCUT HOMEBUILDING SYSTEM USING POLYSTYRENE BLOCKS INSTEAD OF CONCRETE COULD PUT A DENT IN MEXICO'S HOUSING DEFICIT OF SOME SIX MILLION UNITS MOST OF THE PROBLEMS IN MEXICO ARE REALLY BUSINESS OPPORTUNITIES IF YOU ARE CREATIVE ENOUGH TO SEE THEM SAYS TERRENCE MCKENNA PRESIDENT OF ENVIRONMENTAL SYSTEMS PRODUCTS INC AN EAST GRANBY CONN MAKER OF AUTOEMISSIONS TEST SYSTEMS HE FOUND HIS POT OF GOLD BENEATH THE CLOUD OF SMOG THAT PERPETUALLY HANGS OVER MEXICO CITY ENVIRONMENTAL SYSTEMS WON A 10 MILLION CONTRACT TO SUPPLY EMISSIONS TESTERS TO THE MUNICIPAL GOVERNMENT WHICH HAS STARTED UP AN AUTOINSPECTION PROGRAM DESIGNED TO GET POLLUTING HEAPS OFF THE ROAD SINCE LANDING THE CONTRACT TWO YEARS AGO ENVIRONMENTAL SYSTEMS HAS SET UP A MEXICAN SALES AND SERVICE SUBSIDIARY THAT IS HUNTING FOR MORE DEALS LIKE ENVIRONMENTAL SYSTEMS SOME SMALL US CONCERNS OPERATING IN MEXICO GOT THEIR START BY SHIPPING PRODUCTS HERE AFTER MEXICO BEGAN LIFTING TARIFF BARRIERS IN THE LATE 1980S SMALL OR MEDIUMSIZED COMPANIES THOSE WITH FEWER THAN 200 EMPLOYEES ACCOUNT FOR MORE THAN 60 OF TOTAL US EXPORTS ACCORDING TO A RECENT COMMERCE DEPARTMENT STUDY AND THEY HAVE MADE THEIR MARK IN MEXICO TO WHICH US EXPORTS HAVE TRIPLED TO 42 BILLION OVER THE PAST FIVE YEARS SOME EXPORTERS HAVE FOUND THAT THE MEXICAN MARKET HAS BECOME THE MAIN SHOW WHEN BEGINNING TO SELL TO MEXICO FROM HOUSTON FOUR YEARS AGO RAUL ESPINOZA A MEXICANAMERICAN FASHION DESIGNER AND MARKETER CONSIDERED THE MARKET LITTLE MORE THAN AN AFTERTHOUGHT BUT MEXICO NOW ACCOUNTS FOR SUCH A DOMINANT SHARE OF HIS SALES THAT HE IS MOVING TO GUADALAJARA HIMSELF YOU GO WHERE THE ACTION IS HE SAYS AND THAT MEANS MEXICO THIS FIRST WAVE OF ENTREPRENEURS IS A SPECIAL BREED THERE'S A WILD WEST ATMOSPHERE IN MEXICO THAT'S ATTRACTING AMERICANS WHO ARE RISKTAKERS INNOVATORS PEOPLE WHO DIDN'T QUITE FIT IN ANYWHERE ELSE SAYS LEE THURBURN WHO RECENTLY STARTED A MEXICO VENTURE MR THURBURN HIMSELF IS SUCH A PERSON AFTER BUILDING UP A SUCCESSFUL BUSINESS AS A MEDICALINDUSTRY CONSULTANT IN FORT WORTH TEXAS HE CAME TO A DISTRESSING CONCLUSION IT DAWNED ON ME THAT DOCTORS WERE PROBABLY THE MOST ARROGANT UNPLEASANT PEOPLE IN THE WORLD TO DEAL WITH SEARCHING FOR A NEW CAREER HE LOOKED AT MEXICO EVEN THOUGH HIS ONLY KNOWLEDGE OF IT STEMMED FROM A FEW VACATIONS BUT WHAT TO SELL IN MEXICO MR THURBURN READ HISTORY TO SEE WHO HAD MADE THE BIGGEST KILLINGS IN EARLIER ECONOMIC BOOMS DURING THE CALIFORNIA GOLD RUSH MOST OF THE PEOPLE WHO GOT RICH WEREN'T PROSPECTORS BUT RATHER THE PEOPLE WHO WERE SELLING THE PICKS SHOVELS AND PANS HE SAYS SO I DECIDED TO SELL TOOLS TO THE MEXICO PROSPECTORS MR THURBURN'S NEW COMPANY MEXICO INFORMATION SERVICES INC OFFERS FORTUNESEEKERS A COMPUTER DATABASE ON MEXICAN LAWS POLITICS AND PROSPECTIVE BUSINESS PARTNERS PROVIDING INFORMATION ON MEXICO HAS BECOME A GROWTH INDUSTRY PEOPLE ARE DYING FOR ANY NUGGET THEY CAN GET ON THE MEXICAN MARKET SAYS SCOTT MILLER A PARTNER IN A BIRMINGHAM MICH MARKETRESEARCH FIRM THAT HAS OPENED A MEXICO SUBSIDIARY WORLDRESEARCH INC LIKE MANY OF THESE ENTREPRENEURS MR MILLER SEES A MEXICO VENTURE AS A SECOND CHANCE FOR HIMSELF IN MEXICO HE SAYS HE WILL BE FREE OF REVERSE AGE DISCRIMINATION AGAINST THE YOUNG THAT DOGGED HIM IN HIS FIRST MARKETING JOB WITH GENERAL MOTORS CORP IN DETROIT IT'S HARD FOR PEOPLE HERE TO COMPLAIN THAT I'M INEXPERIENCED SAYS MR MILLER WHO REMAINS SO SELFCONSCIOUS ABOUT HIS AGE THAT HE WON'T REVEAL IT BECAUSE THERE ARE NO EXPERIENCED MEXICAN MARKET RESEARCHERS SINCE COMING HERE TWO YEARS AGO MR MILLER HAS HAD EXPERIENCES HE WOULD RATHER HAVE AVOIDED HIS MAJOR HEADACHE IS THE INADEQUACY OF BASIC SERVICES ONE EVENING JUST BEFORE A FOCUS GROUP WAS DUE TO MEET AT WORLDRESEARCH'S OFFICES A BROWNOUT DARKENED THE WHOLE BLOCK MR MILLER HAD TO DASH ONTO THE PITCHBLACK STREET FLAG DOWN PARTICIPANTS WITH A FLASHLIGHT AND MOVE THEM TO A RESTAURANT WITH A BACKUP POWER SYSTEM BUSINESS SCHOOL DOESN'T PREPARE YOU FOR THIS HE SAYS EVEN MORE TROUBLESOME IS THE SORRY STATE OF TELEPHONE COMMUNICATIONS HE CAN'T DO POLLING BY PHONE AS HE WOULD IN THE US BECAUSE TOO FEW MEXICANS HAVE PHONE LINES TO MAKE SUCH SURVEYS REPRESENTATIVE THAT HAS FORCED THE WORLDRESEARCH SURVEY TEAM ALL MEXICANS EXCEPT FOR MR MILLER TO COLLECT DATA DOOR TO DOOR OR TRY TO ANYWAY UNACCUSTOMED TO POLLSTERS ACCOSTING THEM WITH PERSONAL QUESTIONS WARY MEXICANS HAVE TAKEN THE WORLDRESEARCH INTERROGATORS FOR EVERYTHING FROM BANDITS TO EVANGELISTS TO GOVERNMENT TAX AUDITORS ON A RECENT HOUSETOHOUSE SURVEY MR MILLER AND THE OTHER POLLSTERS ENDURED A SCORE OF REJECTIONS BEFORE FINDING A MAN WHO WOULD PARTICIPATE AND THEN ONLY IF HE COULD SPEAK TO THE INTERVIEWERS FROM BEHIND HIS BARRED DOOR EVEN AFTER RAIN BEGAN FALLING MIDWAY THROUGH THE INTERVIEW THE MAN WOULDN'T ALLOW THE POLLSTERS TO TAKE REFUGE INSIDE HIS PORCH SURE IT'S TOUGH MR MILLER SAYS BUT NO ONE SAID IT WAS EASY BEING A PIONEER MR HERSKOWITZ THE MAN WHO WOULD BE MEXICO'S FROZENYOGURT KING WOULD AGREE THE ONLY ONE THING THAT REMOTELY COMPARES TO RUNNING A BUSINESS IN MEXICO IS GOING TO WAR SAYS THE ENTREPRENEUR A NAVY FIGHTER PILOT DURING THE VIETNAM WAR AND THERE ARE DAYS WHEN I WONDER IF THIS ISN'T A HARDER MISSION MR HERSKOWITZ GOT THE IDEA THAT HEALTH FOOD MIGHT SELL IN MEXICO WHEN HE TOOK A MEXICAN VACATION A FEW YEARS AGO AND NOTICED THE GROWING NUMBER OF JOGGERS TO MAKE SURE HE PUT HIS SHOPS IN POCKETS OF AFFLUENCE HE TEAMED UP WITH LOCAL MEXICAN FRANCHISEES WITH FIRSTHAND KNOWLEDGE OF THEIR MARKETS HIS PLAN HAS BEEN VINDICATED BY MEXICANS' STRONG APPETITE FOR HIS YOGURT BUT THAT ISN'T ENTIRELY GOOD NEWS A COMPETING YOGURT FRANCHISER TCBY ENTERPRISES INC OF LITTLE ROCK ARK IS NOW ATTACKING THE MEXICAN MARKET TOO TO SET HIS OUTLETS APART MR HERSKOWITZ IS TRAVELING THE COUNTRY TRYING TO INTRODUCE NEW PRODUCTS TO HIS FRANCHISEES RECENTLY HE TOOK SAMPLES OF GOURMET COFFEE TO HIS FRANCHISEE IN TORREON A NORTHERN FARMING CENTER WHERE BUSINESS STILL STOPS EVERY AFTERNOON FOR THE TWOHOUR SIESTA THE FRANCHISEE FELIPE MONTANA WHO HAD NEVER TASTED FROZEN YOGURT UNTIL STARTING TO SELL IT DREW THE LINE AT SELLING COFFEE IN FLAVORS SUCH AS HAZELNUT OR YEMENESE MOCHA PEOPLE HERE THINK NESCAFE IS FANCY HE SAID BUT MR HERSKOWITZ WAS PERSUASIVE HE NOTED THAT WHILE MAJOR US MARKETING TRENDS OFTEN HIT MEXICO SEVERAL YEARS LATE THEY DO ARRIVE EVENTUALLY YOU CAN BE THE MEXICAN TRENDSETTER IN GOURMET COFFEE HE TOLD MR MONTANA MR MONTANA SNIFFED A SAMPLE OF BEANS SCRATCHED HIS HEAD AND AGREED TO GIVE IT A TRY IF IT WORKED IN DALLAS HE SAID MAYBE IT WILL WORK IN TORREON TOO 9311090038 931109 BUSINESS BRIEF HUBCO INC CASH STOCK OFFERED TO BUY WASHINGTON BANCORP INC HUBCO INC UNION CITY NJ SAID IT WILL ACQUIRE WASHINGTON BANCORP INC FOR CASH AND SECURITIES IN A TRANSACTION VALUED AT MORE THAN 40 MILLION TERMS CALL FOR HUBCO TO ISSUE EITHER 1610 IN CASH OR 06708 SHARE OF HUBCO SERIES A PREFERRED STOCK FOR EACH WASHINGTON BANCORP SHARE UNDER THE AGREEMENT 51 OF WASHINGTON'S SHARES WOULD BE EXCHANGED FOR PREFERRED STOCK AND 49 WOULD BE EXCHANGED FOR CASH HUBCO HAS ASSETS OF 104 BILLION AND OPERATES 37 BANKING BRANCHES IN NORTHERN NEW JERSEY WASHINGTON BANCORP HOBOKEN NJ HAS ASSETS OF 2846 MILLION AND EIGHT BRANCHES IN NORTHERN NEW JERSEY THE COMPANIES SAID THEY EXPECT THE TRANSACTION TO CLOSE IN THE SECOND QUARTER OF 1994 IN NASDAQ STOCK EXCHANGE TRADING WASHINGTON BANCORP SHARES ROSE 15 OR 1875 TO CLOSE AT 14375 EACH 9311090037 931109 BUSINESS BRIEF HOME HOLDINGS INC NET LOSS OF 174 MILLION POSTED FOR LATEST QUARTER HOME HOLDINGS INC NEW YORK REPORTED A NET LOSS OF 174 MILLION FOR THE THREE MONTHS ENDED SEPT 30 AGAINST NET INCOME OF 15 MILLION FOR THE SAME PERIOD A YEAR EARLIER HOME A HOLDING COMPANY WITH UNITS IN INSURANCE FINANCIAL SERVICES AND LAND DEVELOPMENT ATTRIBUTED THE RESULTS TO LOSSES STEMMING FROM THIS YEAR'S FLURRY OF NATURAL DISASTERS AND A STRENGTHENING OF 290 MILLION IN THE INSURANCE UNIT'S BULK RESERVES GEICO CORP AN INSURANCE CONCERN BASED IN WASHINGTON DC REPORTED NET INCOME OF 762 MILLION FOR THE THREE MONTHS ENDED SEPT 30 UP 83 FROM 416 MILLION FOR THE YEAREARLIER PERIOD THE COMPANY SAID ITS OPERATIONS HAVE REBOUNDED FROM UNDERWRITING LOSSES ABSORBED LAST YEAR DUE TO CLAIMS RELATED TO HURRICANE ANDREW STANDARD & POOR'S CORP YESTERDAY AFFIRMED ITS DOUBLEA RATING ON 250 MILLION OF GEICO'S SENIOR DEBT CITING THE COMPANY'S SUPERIOR EARNINGS PERFORMANCE AND STRONG CAPITALIZATION 9311090036 931109 BUSINESS BRIEF INTUIT INC SOFTWARE FIRM'S 4THQUARTER SALES AND EARNINGS SOARED INTUIT INC CITED NEW SOFTWARE PRODUCTS FOR A MORETHANSIXFOLD SURGE IN FISCAL FOURTH QUARTER PROFIT TO 29 MILLION OR 24 CENTS A SHARE FROM 438000 OR FOUR CENTS A SHARE A YEAR AGO THE PERSONALFINANCE SOFTWARE CONCERN BASED IN MENLO PARK CALIF OUTPERFORMED EVEN BULLISH ANALYSTS' ESTIMATES FOR THE QUARTER ACCORDING TO ZACKS CORPORATE EARNINGS ESTIMATOR WHICH LISTED A HIGHEND PROFIT FORECAST OF 19 CENTS A SHARE FOR INTUIT'S FOURTH QUARTER INTUIT'S SALES IN THE PERIOD ENDED SEPT30 ROSE 81 TO 353 MILLION FROM 195 MILLION A YEAR AGO FOR ALL OF FISCAL 1993 INTUIT'S PROFIT ROSE 59 TO 84 MILLION OR 74 CENTS A SHARE FROM 53 MILLION OR 50 CENTS A SHARE THE YEAR BEFORE INTUIT WHOSE PROGRAMS QUICKEN AND QUICKBOOKS AUTOMATE FINANCIAL TASKS FOR HOUSEHOLDS AND SMALL BUSINESSES RELEASED ITS FINANCIAL RESULTS FOLLOWING THE CLOSE OF TRADING IN NEW YORK ITS SHARES CLOSED OFF 50 CENTS AT 3775 IN TRADING ON THE NASDAQ STOCK EXCHANGE 9311090035 931109 BUSINESS BRIEF SYMTEK SYSTEMS INC AUDITOR LETTER QUESTIONS STATUS AS A GOING CONCERN SYMTEK SYSTEMS INC DISCLOSED A RESTATEMENT SHARPLY WIDENING ITS EARLIERREPORTED FISCAL 1993 LOSS AND AN AUDITOR'S LETTER THAT QUESTIONS THE COMPANY'S STATUS AS A GOING CONCERN THE MAKER OF AUTOMATED EQUIPMENT FOR INTEGRATED CIRCUIT TESTING IN SAN DIEGO ALSO DISCLOSED A 9 MILLION JUDGMENT AGAINST IT IN FEDERAL COURT IN MASSACHUSETTS THE COMPANY SAID AN AUGUST DECISION WHICH WASN'T DISCLOSED AT THE TIME WAS SET ASIDE AT ITS REQUEST ON FRIDAY PENDING FURTHER HEARINGS ON DAMAGES SYMTEK SAID INCREASED CHARGES FOR OBSOLETE INVENTORY TOGETHER WITH REVERSAL OF EARLIERRECOGNIZED SALES WIDENED THE COMPANY'S LOSS IN THE YEAR ENDED MARCH 31 TO 8 MILLION OR 520 A SHARE FROM THE EARLIERREPORTED 66 MILLION OR 424 A SHARE REVISED YEAREND REVENUE TOTALED 266 MILLION COMPARED WITH THE EARLIERREPORTED 271 MILLION IN THE PRIOR FISCAL YEAR SYMTEK HAD A LOSS OF 19 MILLION OR 125 A SHARE ON REVENUE OF 421 MILLION 9311090034 931109 WHAT'S NEWS BUSINESS AND FINANCE MOTOROLA PLANS TO SELL MOBILERADIO LICENSES AND PROPERTIES TO NEXTEL COMMUNICATIONS FOR UP TO 18 BILLION IN STOCK NEXTEL IS EXPECTED TO ANNOUNCE TODAY SUCH AN AGREEMENT WOULD GIVE NEXTEL A RADIODISPATCH COMPANY THE RIGHT TO PROVIDE WIRELESS TELEPHONE AND DATA SERVICES IN SEVERAL HIGHLY LUCRATIVE REGIONS QVC IS CLOSE TO AN AGREEMENT ON A 15 BILLION INVESTMENT FROM BELLSOUTH THAT COULD MAKE THE REGIONAL TELEPHONE GIANT ONE OF THE LARGEST AND MOST INFLUENTIAL INVESTORS IN QVC'S HOSTILE BID FOR PARAMOUNT PARAMOUNT IS VIEWED AS LIKELY TO OFFER THE WINNING BID TODAY FOR MACMILLAN THE MOST DESIRABLE PIECE OF ROBERT MAXWELL'S PUBLISHING EMPIRE BANKAMERICA AGREED TO SELL A LARGE PORTFOLIO OF COMMERCIAL REALESTATE LOANS AT A MUCH SMALLER DISCOUNT THAN AT A SALE EARLIER THIS YEAR INDICATING THAT BIDDING IS FAR MORE COMPETITIVE EXAPPLE CHAIRMAN JOHN SCULLEY RECEIVED A MILLIONDOLLAR SALARY TO JOIN SPECTRUM INFORMATION ALONG WITH OPTIONS TO BUY SHARES OVER FIVE YEARS AT AN INDICATED PROFIT OF 72 MILLION UAL FOUND FAULT WITH A UNION COALITION'S LATEST PROPOSAL TO ACQUIRE A MAJORITY STAKE IN THE AIRLINE HOLDING COMPANY INDICATING THE TWO SIDES STILL HAVEN'T RESOLVED SEVERAL BIG ISSUES A JUDGE APPROVED A SETTLEMENT BETWEEN UNITED USAIR AND THE GOVERNMENT THAT PROHIBITS THE CARRIERS FROM FIXING PRICES AND USING A COMPUTER SYSTEM TO INDICATE DISCOUNT DATES GOLDMAN SACHS DID NOT DISCRIMINATE AGAINST A WOMAN WHEN IT DENIED HER A PROMOTION AND THEN FIRED HER A FEDERAL JUDGE SAID IN THROWING OUT A JURY VERDICT THAT FOUND SEX BIAS A JAPANESE ADVISORY PANEL CALLED FOR GREATER DEREGULATION TO BENEFIT CONSUMERS AND BOOST THE ECONOMY BUT IT'S UNCLEAR WHETHER THE GOVERNMENT WILL FOLLOW ITS SUGGESTIONS MEANWHILE THE RELATIONSHIP BETWEEN JAPAN AND THE US IS IMPROVING SAID WALTER MONDALE THE AMBASSADOR TO JAPAN SMITHKLINE BEECHAM LAUNCHED A CONSUMERREBATE PROGRAM AIMED AT ITS COMPETITORS' HIGHER PRICES FOR PRESCRIPTION ANTIULCER MEDICATIONS SOME BIG OIL COMPANIES PLAN TO INCREASE CAPITAL SPENDING NEXT YEAR DESPITE FEARS THAT PRICES COULD STAY WEAK THROUGH WINTER AND INTO NEXT YEAR FRANCE TELECOM AND DEUTSCHE BUNDESPOST TELEKOM ARE SEEKING APPROVAL TO EXPAND THEIR COLLABORATION IN CORPORATE SERVICES AROUND EUROPE OFFICIALS DENIED REPORTS THEY ARE NEAR A THREEWAY VENTURE WITH AT&T COMEDIAN BILL COSBY HAS DROPPED HIS EFFORT TO LINE UP FINANCING FOR A BID TO BUY THE NBC NETWORK FROM GE VOLKSWAGEN'S LOPEZ IS UNDER INVESTIGATION BY HAMBURG PROSECUTORS OVER CHARGES THAT HE SUBMITTED FALSE AFFIDAVITS TO GERMAN COURTS THE NEW CHARGES CENTER ON APPARENT CONTRADICTIONS IN STATEMENTS LOPEZ MADE IN CONNECTION WITH ALLEGATIONS THAT HE STOLE SECRETS WHEN HE LEFT GM FOR VW KIMBERLYCLARK PLANS TO LAUNCH A PREMIUM DISPOSABLE DIAPER WITH VELCRO CLOSURES AND A CLOTHLIKE EXTERIOR BONDS LEHMAN BROTHERS TREASURY INDEX 551910 UP 2801 COMMODITIES OIL 1671 A BARREL OFF 38 CENTS DOW JONES FUTURES INDEX 13382 UP 013 SPOT INDEX 12020 OFF 056 DOLLAR 10783 YEN OFF 037 16853 MARKS OFF 00087 9311090033 931109 BUSINESS BRIEF KENDALL SQUARE RESEARCH CORP SOME SHIPMENTS' TREATMENT IN HALF TO BE RECONSIDERED KENDALL SQUARE RESEARCH CORP WALTHAM MASS SAID IT IS RECONSIDERING ITS ACCOUNTING TREATMENT OF CERTAIN SHIPMENTS RECOGNIZED AS REVENUE DURING THE FIRST HALF OF THE YEAR AND IT PLANS TO REPORT THIRDQUARTER RESULTS BY THE END OF NOVEMBER KENDALL SQUARE'S DECISION TO RECONSIDER FIRSTHALF REVENUE STEMS FROM A MANAGEMENT AND AUDITOR REVIEW OF ITS ACCOUNTING OF SHIPMENTS AND RAISES THE POSSIBILITY OF A RESTATEMENT OF EARNINGS FOR THOSE PERIODS THE COMPANY IS PERFORMING A SIMILAR REVIEW OF THIRDQUARTER SHIPMENTS FOR THE FIRST HALF THE COMPANY HAD SALES OF 247 MILLION NET INCOME WAS 13 MILLION OR 10 CENTS A SHARE ON OCT 28 THE SUPERCOMPUTER COMPANY SAID REVENUE FOR THE THIRD QUARTER WOULD BE SUBSTANTIALLY BELOW EXPECTATIONS AND THAT IT WOULD INCUR A LOSS FOR THE QUARTER THE COMPANY NOTED ITS SALES CONTRACTS INVOLVE COMPLEX TERMS AND PROVISIONS INCLUDING IN SOME CASES THIRDPARTY FUNDING PROVISIONS THE REVIEW IS FOCUSING ON THE CONTRACTS ATTEMPTING TO DETERMINE WHAT REVENUE IT CAN RECORD FROM ITS SHIPMENTS 9311090032 931109 OIL COMPANIES PLAN TO BOOST SPENDING MOST OF BIG FIRMS' DOLLARS TO GO ABROAD BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO DESPITE FEARS THAT OIL PRICES COULD REMAIN WEAK THROUGH THE WINTER AND INTO NEXT YEAR SOME OF THE INDUSTRY'S LARGEST COMPANIES PLAN TO INCREASE CAPITAL SPENDING NEXT YEAR EXXON CORP SPENDING IN 1994 COULD CLIMB TO 9 BILLION FROM THE 83 BILLION TO 85 BILLION IT EXPECTS TO SPEND IN 1993 CHEVRON CORP BELIEVES ITS BUDGET COULD GROW TO 5 BILLION FROM THE 47 BILLION TO 48 BILLION OF THIS YEAR ON A SMALLER SCALE ANADARKO PETROLEUM CORP EXPECTS TO RAISE OUTLAYS ABOVE THE 290 MILLION IT WILL SPEND IN 1993 COMPANIES LIKE EXXON AND CHEVRON WILL CONTINUE TO SPEND THE MAJORITY OF THEIR DOLLARS OVERSEAS IN OIL EXPLORATION AND DEVELOPMENT PROJECTS AS WELL AS INVESTMENTS IN REFINERIES OUTSIDE THE US THE MOVE REFLECTS A LONGTERM TREND OF INCREASED OVERSEAS SPENDING BY BIG OIL THAT IS PROVIDING OPPORTUNITY FOR SMALLER EXPLORATION COMPANIES I'M LOVING IT SAID ROBERT ALLISON CHAIRMAN OF ANADARKO WHICH WILL BOOST SPENDING IN THE GULF OF MEXICO JAMES NIEHAUS PRESIDENT OF OCCIDENTAL PETROLEUM CORP'S DOMESTIC OIL AND GAS SUBSIDIARY SAID THE COMPANY WILL SPEND 30 MILLION NEXT YEAR ABOUT THE SAME AS IT DID IN 1993 MAINLY IN AREAS WHERE OIL HAS BEEN PRODUCED FOR YEARS WE'RE SEEING A WHOLE LOT MORE EFFICIENT DEVELOPMENT OF EXISTING FIELDS MR NIEHAUS SAID THE SPENDING FORECASTS WERE MADE IN INTERVIEWS AT THE ANNUAL MEETING OF THE AMERICAN PETROLEUM INSTITUTE A NORMALLY BOISTEROUS CONVENTION THAT THIS YEAR WAS UNUSUALLY RESERVED THERE'S A MIXTURE OF EMOTION IN THE INDUSTRY RIGHT NOW SAID PHILIP CARROLL CHIEF EXECUTIVE OF THE SHELL OIL CO SUBSIDIARY OF ROYAL DUTCH/SHELL GROUP MR CARROLL SAID MANY EXECUTIVES ARE GRATIFIED THAT PROFITS ARE HIGHER THIS YEAR THAN LAST DESPITE WEAK OIL PRICES HE CREDITED SEVERAL YEARS OF INDUSTRYWIDE COSTCUTTING AND THE CLOSING OF MANY REFINERIES THAT HAS HELPED BOOST MARGINS OF SURVIVING PLANTS BUT YOU DON'T WANT TO GET TOO ECSTATIC HE SAID BECAUSE PEOPLE STILL AREN'T EARNING THEIR REAL COST OF CAPITAL OIL PRICES FELL AGAIN YESTERDAY ON FEARS OF OVERSUPPLY DESPITE SOME INDICATIONS THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IS CURBING ITS OVERPRODUCTION ON THE NEW YORK MERCANTILE EXCHANGE CRUDE TO BE DELIVERED IN DECEMBER PLUNGED 38 CENTS TO 1671 A BARREL OPEC MEETS SOON AND THEY HAVE NO EARTHLY IDEA WHAT THEY'RE GOING TO DO SAID CJ SILAS CHAIRMAN OF PHILLIPS PETROLEUM CO NONETHELESS MR SILAS AND MANY OTHER EXECUTIVES PREDICTED THAT WHILE PRICES COULD REMAIN WEAK FOR SEVERAL MONTHS ON AVERAGE IN 1994 THEY WILL BE MUCH THE SAME AS THIS YEAR KENNETH DERR CHAIRMAN OF CHEVRON AGREED SAYING THAT IN RECENT YEARS WHENEVER PRICES FELL INTO THE MIDTEENS SEVERAL OPEC COUNTRIES WOULD REIN IN THEIR PRODUCTION AND PRICES WOULD RISE WHENEVER PRICES CLIMBED MUCH ABOVE 21 A BARREL HE SAID OPEC COUNTRIES PRODUCED AS MUCH OIL AS THEY COULD DEFLATING PRICES WE ALL COME TO THE SAME BASIC CONCLUSIONS WE DON'T KNOW WHAT THE REAL PRICE OF OIL WILL BE MR DERR SAID SO WE'RE TRYING TO DEAL WITH WHAT WE CAN CONTROL HE SAID REFERRING TO COSTS MR DERR SAID CHEVRON'S INCREASE IN CAPITAL SPENDING WILL GO MAINLY TO OVERSEAS OIL FIELDS AND TO INCREASE THE REFINING CAPACITY IN THAILAND AND SINGAPORE OF CALTEX A JOINT VENTURE BETWEEN CHEVRON AND TEXACO INC MR DERR ALSO SAID THAT STALLED TALKS WITH KUWAIT ABOUT PROVIDING SOME SORT OF ASSISTANCE IN THAT COUNTRY'S OIL FIELDS HAVE BECOME ACTIVE AGAIN LEE RAYMOND CHAIRMAN OF EXXON SAID A COMPANY OF EXXON'S SIZE DOESN'T ALTER ITS SPENDING PLANS FOR A SINGLEYEAR DROP IN PRICES BECAUSE SO MANY PROJECTS TAKE SEVERAL YEARS TO DEVELOP AND CAN'T BE HALTED IN MIDSTREAM THAT'S NOT HOW YOU RUN A COMPANY LIKE OURS MR RAYMOND SAID 9311090031 931109 BUSINESS BRIEF CORRECTIONS CORP OF AMERICA LOWER EARNINGS EXPECTED FOR 4TH QUARTER YEAR END CORRECTIONS CORP OF AMERICA SAID ITS FOURTHQUARTER AND FULLYEAR EARNINGS WILL BE SLIGHTLY LOWER BECAUSE IT HAS LOST A PROFITABLE CONTRACT FROM WASHINGTON DC ON NOV 5 THE DISTRICT OF COLUMBIA NOTIFIED CCA THAT INMATES HOUSED IN CCA'S 416BED WEST TENNESSEE DETENTION FACILITY IN MASON TENN WILL BE RETURNED TO THE DISTRICT DUE TO BUDGET CONSTRAINTS CCA HAS BEEN HOUSING 211 PRISONERS FOR THE DISTRICT SINCE DECEMBER 1990 THE COMPANY SAID THE DISTRICT OF COLUMBIA WAS PULLING OUT BECAUSE IT DIDN'T HAVE THE MONEY TO PAY FOR THE PRISONER SERVICE CCA PRESIDENT AND CHIEF EXECUTIVE OFFICER DOCTOR R CRANTS SAID THE PRISONERS' UNEXPECTED DEPARTURE WILL AFFECT EARNINGS IN THE SHORT TERM MR CRANTS SAID PREVIOUSLY PUBLISHED FOURTHQUARTER ESTIMATES OF 10 CENTS A SHARE SHOULD BE REVISED TO EIGHT CENTS FOURTHQUARTER EARNINGS IN 1992 WERE SIX CENTS A SHARE 9311090030 931109 WHAT'S NEWS WORLDWIDE CLINTON MET WITH UNDECIDED LAWMAKERS ON THE EVE OF A NAFTA DEBATE THE PRESIDENT WELCOMED A STEADY STREAM OF LEGISLATORS TO THE WHITE HOUSE HOPING TO ROUND UP THE 218VOTE MAJORITY NEEDED TO WIN HOUSE PASSAGE OF THE TRADE PACT JOINING THE US MEXICO AND CANADA CLINTON ALSO INVITED 15 TO 20 UNDECIDED LAWMAKERS TO DINNER LAST NIGHT AND HE SCHEDULED A NAFTA SPEECH TO BUSINESS EXECUTIVES TODAY THE WHITE HOUSE WAS MORE THAN TWO DOZEN VOTES SHORT WITH EIGHT DAYS TO CLOSE THE GAP VICE PRESIDENT GORE WILL DEBATE NAFTA OPPONENT PEROT TONIGHT TREASURY SECRETARY BENTSEN COMPARED OPPOSITION TO THE TRADE AGREEMENT TO THE KIND OF VIEWS THAT LED TO THE CONSTRUCTION OF THE BERLIN WALL YELTSIN SIGNED THE FINAL DRAFT OF A NEW RUSSIAN CONSTITUTION THAT WOULD EXPAND HIS PRESIDENTIAL POWERS AND FORMALLY GRANT CITIZENS THE RIGHT TO OWN PROPERTY THE DRAFT IS TO BE SUBMITTED TO VOTERS FOR APPROVAL NEXT MONTH YELTSIN ABANDONED THE OLD CONSTITUTION AND DISBANDED PARLIAMENT JUST OVER A MONTH AGO CLIFTON WHARTON RESIGNED AS DEPUTY SECRETARY OF STATE WHARTON THE NO 2 OFFICIAL IN THE STATE DEPARTMENT BLAMED SUSTAINED ANONYMOUS LEAKS TO THE MEDIA FOR HIS EARLY DEPARTURE WHARTON'S RESIGNATION ISN'T LIKELY TO SATISFY CRITICS OF THE CLINTON FOREIGNPOLICY TEAM BECAUSE HE FOCUSED ON ADMINISTRATIVE ISSUES ISRAEL'S PRIME MINISTER RABIN VOWED TO HALT ATTACKS BY JEWISH SETTLERS IN THE OCCUPIED TERRITORIES FOLLOWING A SECOND DAY OF PROTESTS AGAINST THE KILLING OF AN ISRAELI SEPARATELY ISRAELI AND PALESTINIAN NEGOTIATORS PLANNED TO CONTINUE TALKS IN CAIRO OFFICIAL SOURCES SAID HILLARY CLINTON REACHED OUT TO PROMOTERS OF ALTERNATIVE HEALTHCARE REFORM PROPOSALS INCLUDING ONE SPONSORED BY SENATE REPUBLICANS THAT SHARE THE GOAL OF UNIVERSAL COVERAGE SHE SAID AN EXTENSIVE ANALYSIS MUST BE MADE BUT THAT THERE ARE A LOT OF GOOD IDEAS THAT NEED TO BE EXPLORED ON BOTH SIDES ART THIEVES CUT A HOLE IN THE ROOF OF A STOCKHOLM MUSEUM TO STEAL MORE THAN 60 MILLION OF UNINSURED WORKS BY PICASSO AND BRAQUE THE THIEVES CARRIED SEVEN FRAMED PAINTINGS AND A PICASSO BRONZE SCULPTURE OUT THROUGH THE ROOF OF THE MUSEUM OF MODERN ART ON SUNDAY NIGHT WITHOUT TRIGGERING AN ELECTRONIC ALARM SYSTEM A MONTHLONG SOMALI TRUCE SEEMED TO BE CRUMBLING AS FOREIGN TROOPS CAME UNDER FIRE FOR THE FOURTH STRAIGHT DAY IN MOGADISHU A SECURITY CHIEF FOR THE INTERNATIONAL AID AGENCY CARE WAS KILLED AND A GUARD WAS WOUNDED DURING A SHOOTOUT INVOLVING MALAYSIAN TROOPS IN A PART OF THE CAPITAL CONSIDERED TO BE A STRONGHOLD OF CLAN LEADER AIDID HAITI'S CONSTITUTIONAL GOVERNMENT SAID IT WAS SENDING FIVE MINISTERS TO WASHINGTON FOR TALKS WITH EXILED PRESIDENT ARISTIDE ON THE COUNTRY'S POLITICAL CRISIS HAITIAN MILITARY LEADERS LAST WEEK SNUBBED GOVERNMENT OFFICIALS AND UN DIPLOMATS WHO HAD GATHERED IN PORTAUPRINCE TO DISCUSS A TIMETABLE FOR ARISTIDE'S RETURN SERBIAN PRESIDENT MILOSEVIC CALLED UN SANCTIONS AGAINST HIS COUNTRY AN ACT OF GENOCIDE AND GREECE'S FOREIGN MINISTER PLEDGED TO INTERVENE ON SERBIA'S BEHALF IN BOSNIA MEANWHILE FOUR BUSES OF THE FIRST MAJOR EVACUATION CONVOY SINCE MAY LEFT SARAJEVO WITH SERB WOMEN CHILDREN AND ELDERLY MEN GOING TO BELGRADE A CALIFORNIA MAN WAS CHARGED WITH THREATENING TO SET FIRES TO GET EVEN WITH THE GOVERNMENT FOR SEIZING HIS PROPERTY HOWEVER FEDERAL PROSECUTORS SAID THEY HADN'T LINKED THE SUSPECT TO ANY OF THE 26 WILDFIRES THAT SCORCHED PARTS OF SOUTHERN CALIFORNIA OVER A TWOWEEK PERIOD NINETEEN OF THE FIRES HAVE BEEN DESCRIBED AS SUSPICIOUS LIBYA RECEIVED A REPRIEVE FROM NEW UN SANCTIONS WHEN THE SECURITY COUNCIL DELAYED A VOTE ON MEASURES TO PRESSURE TRIPOLI FURTHER TO TURN OVER TWO SUSPECTS IN THE 1988 PAN AM BOMBING OVER SCOTLAND A RESOLUTION EXTENDING THE SANCTIONS IS EXPECTED TO BE PASSED THURSDAY PAKISTANI AND US NEGOTIATORS FAILED TO MAKE MUCH PROGRESS IN RESOLVING DIFFERENCES OVER PAKISTAN'S NUCLEAR PROGRAM AFTER TALKS IN ISLAMABAD A US OFFICIAL SIMPLY SAID WE HAVE A DIALOGUE GOING RELATIONS BETWEEN THE TWO NATIONS HAVE BEEN STRAINED BY US SUSPICIONS THAT PAKISTAN IS MAKING NUCLEAR WEAPONS 9311090029 931109 BUSINESS BRIEF UNISYS CORP INTERNATIONAL TEAM FORMED TO PROTECT AMAZON FOREST UNISYS CORP BLUE BELL PA SAID IT FORMED A TEAM WITH US BRAZILIAN AND JAPANESE COMPANIES TO PURSUE A SURVEILLANCE PROGRAM TO HELP THE BRAZILIAN GOVERNMENT PROTECT THE AMAZON RAIN FOREST SEVERAL COMPANIES INCLUDING FRENCH CONCERN THOMPSON CSF AND RAYTHEON CORP HAVE EXPRESSED AN INTEREST IN THE PROGRAM AND THE BRAZILIAN GOVERNMENT IS EXPECTED TO AWARD THE CONTRACT IN LATE 1994 A UNISYS SPOKESMAN SAID HE SAID THE CONTRACT'S VALUE COULD RUN TO SEVERAL HUNDREDS OF MILLIONS OF DOLLARS UNISYS SAID ITS ROLE WOULD BE TO MANAGE INTEGRATED TECHNOLOGIES THAT WOULD MONITOR THE HEALTH OF THE AMAZON RAIN FOREST THE DATA TO BE COLLECTED BY SURVEILLANCE RADARS AERIAL SURVEYS SATELLITES AND OTHER METHODS WILL HELP BRAZIL PROTECT THE FOREST FROM ENVIRONMENTAL DAMAGE THE UNISYS TEAM INCLUDES THE BRAZILIAN UNIT OF JAPAN'S NIPPON ELECTRIC OF JAPAN HOBECO BRAZIL WESTINGHOUSE ELECTRIC CORP GENERAL MOTORS CORP'S HUGHES AIRCRAFT CO AND ENVIRONMENTAL RESEARCH INSTITUTE OF MICHIGAN 9311090028 931109 BUSINESS BRIEF RAX RESTAURANTS INC RESTAURANT CHAIN EMERGES FROM CHAPTER 11 PROTECTION RAX RESTAURANTS INC SAID THE COMPANY AND ITS NINE AFFILIATES EMERGED FROM PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE THE DUBLIN OHIO RESTAURANT CHAIN'S REORGANIZATION PLAN APPROVED SEPT 28 BY A FEDERAL BANKRUPTCY COURT IN COLUMBUS OHIO CALLS FOR CITICORP VENTURE CAPITAL LTD TO RECEIVE A CONTROLLING EQUITY STAKE THE CITICORP UNIT HELD A 55 EQUITY STAKE IN RAX BEFORE ITS CHAPTER 11 FILING RAX'S COMMON STOCK HAS BEEN CANCELED UNDER THE REORGANIZATION AND ITS HOLDERS WILL RECEIVE NO DISTRIBUTION OR PAYMENT THE PLAN PROVIDES FOR ISSUANCE OF 600540 SHARES IN THE REORGANIZED COMPANY CITICORP VENTURE CAPITAL AND CERTAIN EMPLOYEES OF RAX WILL RECEIVE STOCK A SPOKESMAN SAID AND GENERAL UNSECURED CREDITORS OF RAX AND CERTAIN SUBSIDIARIES WILL HAVE THE CHOICE OF RECEIVING STOCK OR TAKING A CENTSONTHEDOLLAR CASH PAYMENT DISTRIBUTIONS TO CREDITORS WITH UNDISPUTED CLAIMS ARE TO BEGIN WITHIN 60 DAYS 9311090027 931109 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED NOV 5 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER CLAYTON MO INDUSTRIAL DEVELOPMENT AUTHORITY WILL OFFER BONDHOLDERS THE OPTION TO REDEEM ON DEC 5 1993 ITS INDUSTRIAL REVENUE BONDS SERIES 1983 MERCANTILE BANK OF ST LOUIS IS TRUSTEE OHIO WILL REDEEM ON DEC 1 1993 120000 PRINCIPAL AMOUNT OF ITS 6 3/8 INDUSTRIAL DEVELOPMENT REVENUE BONDS DUE DEC 1 1998 SOCIETY NATIONAL BANK OHIO IS TRUSTEE PICO RIVERA WATER DEVELOPMENT CORP WILL REDEEM ON DEC 1 1993 215000 PRINCIPAL AMOUNT OF ITS 8 LEASEHOLD MORTGAGE BONDS ISSUE OF 1986 DUE DEC 1 2006 BANK OF AMERICA GLENDALE CALIF IS TRUSTEE ROANE COUNTY WVA WILL REDEEM ON DEC 1 1993 ITS 11 1/2 INDUSTRIAL DEVELOPMENT REVENUE BONDS SERIES 1980 DUE DEC 1 2010 SOCIETY NATIONAL BANK OHIO IS TRUSTEE 9311090026 931109 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 ITT FINANCIAL CORP 225 MILLION TWOPART ISSUE OF FLOATINGRATE NOTES PRICED BY UNDERWRITERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 125 MILLION OF FLOATINGRATE NOTES DUE NOV 17 1994 WILL FLOAT AND PAY MONTHLY AT ONEMONTH COMMERCIAL PAPER THE NONCALLABLE NOTES PRICED INITIALLY AT PAR WERE SOLD WITH A 50CENT SELLING CONSESSION THE SECOND TRANCHE 100 MILLION OF FLOATINGRATE NOTES DUE JAN 17 1995 WILL FLOAT AND PAY MONTHLY AT 10 BASIS POINTS OVER ONEMONTH COMMERCIAL PAPER THE NONCALLABLE NOTES PRICED INITIALLY AT PAR WERE SOLD WITH A 50CENT SELLING CONCESSION BOTH PARTS ARE RATED PRIME2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA1 BY STANDARD & POOR'S CORP ITT FINANCIAL IS A UNIT OF ITT CORP JANNOCK LTD THREE MILLION COMMON SHARES PRICED AT 1955 CANADIAN DOLLARS US1513 APIECE FOR TOTAL PROCEEDS OF C587 MILLION US454 MILLION THROUGH A GROUP OF UNDERWRITERS INCLUDING NESBITT THOMSON INC WOOD GUNDY INC AND BURNS FRY LTD FEDERAL NATIONAL MORTGAGE ASSOCIATION 156 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 1993243 IS BACKED BY THE AGENCY'S PRINCIPAL ONLY SMBS TRUST 252 WHICH IS BACKED IN TURN BY 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 798 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 350 MONTHS BANCO REAL SA BRAZIL 60 MILLION OF 85 EUROBONDS DUE NOV 18 1996 AT ISSUE AND REOFFER PRICE 99456 VIA INTERNATIONALE NEDERLANDEN BANK NV AND WEST MERCHANT BANK LTD BONDS YIELD 425 BASIS POINTS ABOVE US TREASURY OF AUGUST 1996 FEES ONE PAYABLE SEMIANNUALLY CANADA MORTGAGE AND HOUSING CORP CANADIAN AGENCY C1 BILLION OF 6 GLOBAL BONDS DUE DEC 1 1998 AT ISSUE AND REOFFER PRICE 99825 VIA RBC DOMINION SECURITIES INC LEHMAN BROTHERS SCOTIAMCLEOD INC AND WOOD GUNDY INC BONDS YIELD 6041 A MARGIN OF 15 BASIS POINTS OVER COMPARABLE CANADIAN GOVERNMENT BOND FEES 0275 PAYABLE SEMIANNUALLY COMMONWEALTH BANK OF AUSTRALIA AUSTRALIA 100 MILLION AUSTRALIAN DOLLARS OF 55 EUROBONDS DUE DEC 6 1996 AT ISSUE PRICE 10064 FOR OWN ACCOUNT REOFFERED AT 9914 TO YIELD 582 A SPREAD OF 20 BASIS POINTS OVER COMPARABLE AUSTRALIAN GOVERNMENT BOND FEES 15 COMUNIDAD AUTONOMA DE ANDALUCIA SPAIN 13 BILLION FRENCH FRANCS OF 625 EUROBONDS DUE DEC 9 2003 AT ISSUE PRICE 99395 VIA BANQUE PARIBAS REOFFERED AT 9777 TO YIELD 656 A SPREAD OF 44 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY FEES TWO DE NATIONALE INVESTERINGSBANK NV DUTCH AGENCY 400 MILLION DUTCH GUILDERS OF 575 EURONOTES DUE DEC 14 1999 AT ISSUE PRICE 10075 VIA INTERNATIONALE NEDERLANDEN BANK NV REOFFERED AT 9995 TO YIELD 576 A MARGIN OF 20 BASIS POINTS OVER INTERPOLATED YIELD CURVE BETWEEN 75 DUTCH STATE LOAN OF 1999 AND 775 STATE LOAN OF 2000 FEES ONE ELECTRIC POWER DEVELOPMENT CO JAPANESE AGENCY 11 BILLION FRENCH FRANCS OF 6 EUROBONDS DUE DEC 8 2000 AT ISSUE PRICE 101575 VIA BANQUE PARIBAS REOFFERED AT PAR TO YIELD 6 A MARGIN OF 20 BASIS POINTS OVER COMPARABLE FRENCH TREASURY GUARANTOR GOVERNMENT OF JAPAN FEES 1875 INTERNATIONAL FINANCE CORP SUPRANATIONAL 150 MILLION REPURCHASE PROGRAM OF OUTSTANDING EUROBONDS VIA DEUTSCHE BANK AG LONDON IFC WILL BUY BACK NOT MORE THAN 150 MILLION OF BONDS FROM FOUR ISSUES TOTALING 11 BILLION AND NOT MORE THAN 50 MILLION OF ANY ONE ISSUE ISSUES ARE 925 BONDS OF 1995 7125 BONDS OF 1996 875 BONDS OF 1996 AND 825 BONDS OF 1998 PRICES VARIABLE FEES 005 REPURCHASE PERIOD BEGAN YESTERDAY AND RUNS TO NOV 29 IFC HAS RIGHT TO TERMINATE REPURCHASE PERIOD FOLLOWING 24HOUR NOTICE NICHIMEN AMERICA CORP JAPANESE PARENT FIVE BILLION YEN OF 255 EUROBONDS DUE MAY 15 1996 AT ISSUE AND REOFFER PRICE 1002 VIA SANWA INTERNATIONAL PLC BONDS YIELD 2455 LAUNCHED OFF EURO MEDIUMTERMNOTE PROGRAM KEEPWELL AGREEMENT WITH NICHIMEN CORP FEES 025 TRIBASA TOLL ROAD TRUST NO 1 SPECIALPURPOSE VEHICLE 110 MILLION OF 105 ASSETBACKED EUROBONDS DUE DEC 1 2005 AT ISSUE PRICE PAR VIA SALOMON BROTHERS INTERNATIONAL LTD BONDS SECURED ON REVENUES FROM TRIBASA WHICH HAS CONCESSION TO OPERATE TWO MEXICAN NATIONAL TOLL ROADS UNTIL DEC 1 2011 IF CASHFLOW PROBLEMS PREVENT REPAYMENT IN 2005 ISSUER HAS RIGHT TO EXTEND MATURITY UP TO DEC 1 2011 AVERAGE EXPECTED LIFE OF BONDS 85 YEARS FEES 1625 PAYABLE SEMIANNUALLY 9311090025 931109 AUTOS CHEVY'S LATEST REVIVAL EFFORT IS CUSTOMERDRIVEN BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT NEW CAR BUYERS AT ED CAHILL'S DEALERSHIP IN LAWRENCEVILLE NJ ARE INVITED TO AN EVENING SEMINAR FOR A DETAILED EXPLANATION OF THEIR VEHICLE AND ITS WARRANTY THE STAFF OFFERS THEM COFFEE AND PASTRIES ANSWERS THEIR QUESTIONS AND SENDS THEM HOME WITH A CERTIFICATE FOR A FREE OIL CHANGE THIS IS LEXUS RIGHT NO IT'S A CHEVROLET DEALERSHIP I'VE NEVER HAD THIS MUCH ATTENTION AFTER A PURCHASE IN MY LIFE SAYS BARBARA BORNMANN WHO BOUGHT A NEW CAVALIER AT ED CAHILL CHEVROLET AND GEO IT GOES AGAINST EVERYTHING YOU THINK ABOUT THE CAR BUSINESS LIKE ED CAHILL MANY CHEVY DEALERS ARE TRYING TO PUMP UP SALES USING A FORMULA THAT IS STUNNING IN ITS SIMPLICITY MAKE THE CUSTOMER HAPPY WHILE THAT GOAL MAY STATE THE OBVIOUS IT HASN'T ALWAYS BEEN TAKEN SERIOUSLY BY AUTOMOBILE DEALERS WHO CONSISTENTLY RANK AT OR NEAR THE BOTTOM IN CONSUMER POLLS ON TRUSTWORTHINESS BUT GENERAL MOTORS CORP'S SATURN AND TOYOTA MOTOR CORP'S LEXUS UNITS HAVE SHOWN THAT DEALERS CAN MAKE MONEY BY TREATING PEOPLE WELL AND NOW CHEVY IS MAKING CUSTOMER SATISFACTION THE FOCUS OF A FULLSCALE MAKEOVER EFFORT WE HAVE CHANGED OUR ATTITUDE TOWARD THE CUSTOMER SAYS VICE PRESIDENT AND GENERAL MANAGER JC JIM PERKINS WHO TOOK OVER CHEVROLET IN 1989 YOU HAVE TO SHOW BY YOUR ACTIONS THAT YOU MEAN TO MAKE A DIFFERENCE GM HAS A LOT RIDING ON CHEVY'S LATEST COMEBACK ATTEMPT THE AUTO MAKER HAS BEEN HIT HARD BY RECENT RESTRUCTURING CHARGES EXPENSIVE LABOR CONTRACTS AND FALLING MARKET SHARE ANALYSTS SAY CHEVY'S DECLINE HAS CONTRIBUTED SIGNIFICANTLY TO GM'S WOES A ROBUST RECOVERY AT GM'S HIGHESTVOLUME DIVISION WOULD PROVIDE A CONSIDERABLE LIFT TO THE ENTIRE COMPANY CHEVROLET'S IMPORTANCE TO GM CAN'T BE OVERSTATED THE DIVISION ONCE SOLD MORE CARS THAN ALL THE AUTOS GM SELLS TODAY BUT A STRING OF SHODDILY BUILT PRODUCTS AND MARKETING BLUNDERS IN THE 1980S CHANGED THAT TODAY CHEVROLET HAS A REPUTATION FOR BUILDING MEDIOCRE PRODUCTS IN A MARKET THAT'S MORE DEMANDING AND DISCRIMINATING THAN EVER LAST YEAR THE DIVISION PICKED UP JUST 142 OF THE US CAR AND TRUCK MARKET IN 1982 CHEVY'S SHARE OF THE CAR MARKET ALONE WAS 158 BUT CHANGE IS LOOMING THE DIVISION CONTENDS AUTOMOTIVE ANALYSTS AGREE AND THE LATEST SALES RESULTS OFFER SUPPORT IN OCTOBER CHEVY'S SALES WERE UP 41 PUSHING YEARTODATE SALES 79 AHEAD OF LAST YEAR'S PACE CHEVY OFFICIALS ATTRIBUTE SUCH RESULTS TO THE NEW FOCUS ON CUSTOMERS AND TO A VALUE PRICING STRATEGY THAT HAS BREATHED LIFE INTO SOME OF ITS PRODUCTS CONSIDER THE 12YEAROLD CAVALIER WHICH CHEVY IS OFFERING WITH ANTILOCK BRAKES POWER STEERING AND POWER DOOR LOCKS FOR JUST 8995 CAVALIER SALES SHOT UP 61 LAST MONTH AND ARE 26 AHEAD OF LAST YEAR'S PACE THROUGH OCTOBER IT'S CLEAR THAT CHEVROLET IS ON A COMEBACK PATH SAYS JOHN CASESA AN ANALYST WITH WERTHEIM SCHRODER & CO CHEVY IS ROLLING OUT SEVERAL NEW CARS AND TRUCKS IT INTRODUCED THE REDESIGNED CAMARO THIS SPRING AND UNVEILED ITS NEW S10 SERIES OF COMPACT PICKUP TRUCKS IN THE FALL IN FEBRUARY CHEVROLET WILL UNVEIL THE IMPALA SS SEDAN AND REDESIGNED LUMINA AND MONTE CARLO MODELS WILL REACH DEALER SHOWROOMS IN THE SPRING THE NEW CAVALIER AND GEO METRO SUBCOMPACTS WILL MAKE THEIR DEBUT IN THE FALL OF 1994 ANALYSTS PREDICT THE VEHICLES WILL LURE MANY BUYERS BACK TO CHEVY DEALERSHIPS CHEVROLET'S NEW PRODUCTS ARE NOT RISKY SAYS SCOTT MERLIS AN ANALYST WITH MORGAN STANLEY THEY'RE EVOLUTIONARY AND REPRESENT MEANINGFUL IMPROVEMENTS THE BAD NEWS IS THAT THE NEW MODELS ON WHICH CHEVY IS PINNING ITS HOPES ARE SLOW IN ARRIVING TAKING SEVERAL MONTHS TO A YEAR TO REACH SHOWROOMS THAT LEAVES DEALERS PEDDLING OLD MODELS AND CHEVY HAS LITTLE CHOICE BUT TO CUT PRICES TO MAINTAIN ITS MARKET SHARE THIS MR PERKINS DRYLY ACKNOWLEDGES IS INDEED A TRANSITION YEAR FOR US THE CUSTOMER SATISFACTION PROGRAMS TAKE THEIR INSPIRATION FROM SATURN AND ABOUT 160 OTHER COMPANIES CHEVROLET HAS STUDIED INCLUDING WALT DISNEY CO AND FEDERAL EXPRESS CORP CHEVROLET HAS GIVEN ITS WORKERS THE ADDED DESIGNATION OF CUSTOMER ENTHUSIASM OFFICER WHICH MEANS THEY ARE RESPONSIBLE FOR HELPING CHEVROLET BETTER SERVE THE NEEDS OF ITS BUYERS AS PART OF THAT EFFORT CHEVROLET HAS ELIMINATED A 100 DEDUCTIBLE ON ITS NEW CAR AND TRUCK WARRANTIES THAT'S A BIG IMPROVEMENT EVEN THOUGH MANY OTHER AUTOMOTIVE FRANCHISES ABANDONED DEDUCTIBLES ON NEW VEHICLE WARRANTIES YEARS AGO THE DIVISION ALSO OFFERS FREE TRANSPORTATION TO BUYERS WHO BRING THEIR VEHICLES TO DEALERSHIPS FOR WARRANTY SERVICE ANALYSTS AND DEALERS SAY CHEVROLET ISN'T BREAKING ANY NEW GROUND WITH SUCH SERVICES HOWEVER THEY ADD CHEVY'S EFFORTS SHOW THAT IT IS SERIOUS ABOUT CUSTOMER SERVICE CHEVROLET HOPES ITS EFFORTS WILL BOOST THE DIVISION'S US SALES TO 23 MILLION CARS AND TRUCKS FOR 1993 UP 95 FROM 1992 SALES IN 1994 THE DIVISION EXPECTS TOTAL VEHICLE SALES TO REACH 24 MILLION BUT CHEVROLET FACES A FORMIDABLE BARRIER TO RECOVERY ITS LONGTERM GROWTH IS TIED DIRECTLY TO GM'S FINANCIAL HEALTH LAST MONTH GM REPORTED A THIRDQUARTER LOSS OF 1129 MILLION YOU'RE NOT GOING TO HAVE A SICK GM AND A HEALTHY CHEVROLET SAYS MR CASESA MR PERKINS IS SOMEWHAT PHILOSOPHICAL ABOUT THE PROSPECTS FOR A SUSTAINED REVIVAL AT CHEVROLET YEARS AGO THERE WAS A FINISH LINE AND YOU COULD DECLARE A VICTORY BUT THAT DOESN'T EXIST ANYMORE HE DECLARES TODAY YOU'RE CONSTANTLY IN A STATE OF CHANGE I ADMIRE THE WAY WE'RE GOING THROUGH IT 9311090024 931109 INTERNATIONAL BRIEF OMRON CORP UNCONSOLIDATED PRETAX PROFIT GREW 8 IN FISCAL FIRST HALF OMRON CORP A JAPANESE MAKER OF CONTROL PARTS SAID ITS UNCONSOLIDATED PRETAX PROFIT ROSE 8 TO 217 BILLION YEN 201 MILLION IN THE FIRST HALF ENDED SEPT 30 FROM THE YEAREARLIER SIX MONTHS IN THE YEAREARLIER PERIOD PRETAX PROFIT WAS 201 BILLION YEN SALES ROSE 24 TO 17376 BILLION YEN FROM 16977 BILLION YEN THE COMPANY SAID ITS OPERATING ENVIRONMENT REMAINED SEVERE AS A RESULT OF WEAK CAPITAL INVESTMENT BY BUSINESSES TIED TO POOR CORPORATE EARNINGS AND THE RAPID ADVANCE OF THE YEN AS WELL AS SLUGGISH CONSUMER SPENDING THE RISE IN REVENUE STEMMED FROM STRONG SALES OF ELECTRONICFUNDTRANSFER SYSTEMS AND HEALTH AND MEDICAL EQUIPMENT 9311090023 931109 BUSINESS BRIEF MASPAR COMPUTER CORP CUTBACKS IN STAFF ARE SLATED WITH A LOSS EXPECTED FOR '93 MASPAR COMPUTER CORP SAID IT IS NARROWING ITS PRODUCT FOCUS AND CUTTING ITS WORK FORCE BY 38 PEOPLE OR 25 TO COPE WITH EXPECTED FLAT REVENUE AND A LOSS FOR THE 1993 YEAR REVENUE IN 1993 SHOULD ROUGHLY EQUAL THE 264 MILLION REPORTED IN 1992 A SPOKESMAN SAID THE COMPANY DECLINED TO ESTIMATE THE SIZE OF ITS PROBABLE 1993 LOSS CLOSELY HELD MASPAR BASED IN SUNNYVALE CALIF DEVELOPS MASSIVELY PARALLEL PROCESSING COMPUTER SYSTEMS WHICH CAN LINK AS MANY AS 16000 PROCESSORS WITHIN A SINGLE COMPUTER CABINET TO ATTACK SOPHISTICATED SCIENTIFIC ENGINEERING OR STATISTICAL PROBLEMS MASPAR SAID IT IS REDUCING ITS EMPHASIS ON CERTAIN MARKETS SUCH AS SEISMICDATA ANALYSIS THIS WILL ALLOW THE COMPANY TO CONCENTRATE ON FUTURE CORE MARKETS IN IMAGE AND SIGNAL PROCESSING BUSINESSINFORMATION SYSTEMS AND BIOTECHNOLOGY 9311090021 931109 FOOD TV ADVERTISING AIMED AT KIDS IS FILLED WITH FAT BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA THE NUMBER OF COMMERCIALS FOR HIGHFAT FOODS ON CHILDREN'S TELEVISION SHOWS HAS JUMPED SHARPLY DESPITE RECENT FEDERAL RECOMMENDATIONS THAT CHILDREN FOLLOW A LOWFAT DIET A TEAM OF NEW YORK RESEARCHERS REPORTED THE RESEARCHERS SAID SPOT CHECKS OF SATURDAY MORNING TELEVISION COMMERCIALS EARLIER THIS YEAR FOUND THAT 41 OF THE FOODS ADVERTISED CONTAINED A THIRD OR MORE OF THEIR CALORIES IN FAT SIMILAR SPOT CHECKS IN 1989 AND 1990 FOUND ONLY 16 OF THE FOODS ADVERTISED ON SATURDAY MORNING WERE HIGHFAT FOODS THE RESEARCHERS DEFINED HIGHFAT AS FOOD WITH 30 OR MORE OF ITS CALORIES COMING FROM FAT IT WOULD BE WRONG TO SAY THAT BECAUSE THE GUIDELINES CAME OUT THERE ARE MORE HIGHFAT FOODS ADVERTISED THOMAS J STARC A PEDIATRIC CARDIOLOGIST AT COLUMBIA PRESBYTERIAN MEDICAL CENTER TOLD THE AMERICAN HEART ASSOCIATION MEETING HERE INSTEAD HE SUGGESTED ISSUANCE OF THE FEDERAL GUIDELINES FOR CHILDREN COINCIDED WITH MARKETING CHANGES IN THE FOOD INDUSTRY IN 19891990 THERE WERE VERY FEW PIZZA ADS ON SATURDAY MORNING HE EXPLAINED THE SATURDAY MORNING HOURS ARE NOW HEAVILY LOADED WITH COMMERCIALS FOR PIZZA HUT AND LITTLE CAESARS PIZZAS HE NOTED IN PREVIOUS YEARS HE SAID PACKAGED MEALS LIKE CANNED SPAGHETTI WERE THE TYPE OF HIGHFAT FOOD USUALLY ADVERTISED TO CHILDREN DR STARC ALSO SINGLED OUT MCDONALD'S BURGER KING AND WENDY'S FOR PROMOTING HIGHFAT FOODS IN THEIR SATURDAY MORNING COMMERCIALS IT ISN'T THAT THE FASTFOOD CHAINS AREN'T TRYING TO OFFER HEALTHIER FOODS SAID LISA C COHN THE NUTRITIONIST ON THE RESEARCH TEAM YOU WALK INTO PIZZA HUT OR MCDONALD'S AND LOOK AT THEIR ACTUAL MENUS AND YOU'LL SEE LOWFAT ITEMS SHE SAID CITING LOWFAT MILKSHAKES AT MCDONALD'S SALADS AT WENDY'S AND BAKED POTATOES AT PIZZA HUT BUT IF YOU VIEW SATURDAY MORNING CHILDREN'S TELEVISION YOU WOULDN'T KNOW THESE HEALTHIER FOODS WERE AVAILABLE SHE SAID HOW THE FASTFOOD CHAINS DEFINE A KID'S MEAL ISN'T A SALAD DR STARC ADDED FOR SIXYEAROLD KIDS THE FOODS ADVERTISED ON SATURDAY MORNING ARE ALL THEY SEE AS THE OPTIONS FOR FOODS HE URGED THE FOOD MARKETERS TO BEGIN SHOWING COMMERCIALS THAT DEPICT OTHER HEALTHIER FOODS THAT ARE AVAILABLE IN SEPTEMBER 1991 THE FEDERAL NATIONAL CHOLESTEROL EDUCATION PROGRAM ISSUED GUIDELINES URGING THAT THE DIETS OF CHILDREN MORE THAN TWO YEARS OLD CONTAIN LESS THAN 30 OF TOTAL CALORIES IN FAT AS PART OF A LONGTERM PROGRAM TO FIGHT HEART DISEASE THE LATEST NATIONAL NUTRITION SURVEY NOW SEVERAL YEARS OLD SHOWED THAT CHILDREN GET AN AVERAGE OF 34 OF THEIR CALORIES FROM FATS DR STARC SAID THE RESEARCHERS COUNTED COMMERCIALS BROADCAST ON THE MORNING OF APRIL 24 1993 BY THREE NETWORK AFFILIATES IN NEW YORK DURING THE 15 HOURS OF CHILDREN'S PROGRAMMING HE SAID THERE WERE 423 COMMERCIALS OF WHICH 47 WERE FOR FOODS AND 16 FOR TOYS OF THE FOOD COMMERCIALS 38 WERE FOR CEREALS CONSIDERED TO BE LOWFAT FOODS AND 38 WERE FOR FASTFOOD CHAINS AND PACKAGED MEALS ALMOST ALL OF WHICH WERE HIGHFAT FOODS SNACKS LIKE COOKIES AND CANDY ACCOUNTED FOR 10 OF THE COMMERCIALS BUT 40 OF THE SNACKS ADVERTISED WERE HIGHFAT PRODUCTS HE REPORTED THE RESEARCHERS COMPARED THEIR 1993 COUNT WITH SIMILAR BUT LESS EXTENSIVE CHECKS MADE IN OCTOBER 1989 AND APRIL 1990 IN THOSE YEARS DR STARC SAID CHILDREN SAW AN AVERAGE OF TWO COMMERCIALS AN HOUR FOR FAST FOODS AND PACKAGED MEALS THE AVERAGE JUMPED IN THIS YEAR'S CHECK TO FIVE COMMERCIALS AN HOUR FOR THE PREDOMINATELY HIGHFAT FAST FOODS AND PACKAGED MEALS THEY REPORTED THE CURRENT RECOMMENDATIONS FOR LOWFAT FOODS FOR CHILDREN ARE BEING IGNORED SAID DR STARC 9311090020 931109 WHO'S NEWS PACIFIC TELESIS NAMES FOUR TO JOIN BOARD OF CELLULAR SPINOFF PACIFIC TELESIS GROUP NAMED FOUR CALIFORNIA BUSINESSMEN TO SERVE ON THE BOARD OF ITS NEW CELLULAR SUBSIDIARY ONCE THE UNIT IS SPUN OFF EARLY NEXT YEAR PACTEL WON APPROVAL FROM CALIFORNIA REGULATORS LAST WEEK TO SPIN OFF THE CELLULAR BUSINESS AND SELL A 12 STAKE IN AN INTITIAL PUBLIC OFFERING FOR 12 BILLION THE REMAINING SHARES OF THE NEW COMPANY TO BE KNOWN AS PACTEL CORP WILL BE DISTRIBUTED TO PACIFIC TELESIS SHAREHOLDERS THE FOUR NEW BOARD MEMBERS ARE DONALD G FISHER CHAIRMAN AND CHIEF EXECUTIVE OF GAP INC VENTURE CAPITALIST ARTHUR ROCK CHARLES SCHWAB CHAIRMAN OF CHARLES SCHWAB CORP AND GEORGE SHULTZ FORMER SECRETARY OF STATE THEY WILL JOIN THREE OTHER MEMBERS OF THE CELLULAR UNIT'S BOARD SAM GINN CHAIRMAN PRESIDENT AND CHIEF OPERATING OFFICER OF PACIFIC TELESIS JAMES R HARVEY CHAIRMAN OF TRANSAMERICA CORP AND PAUL HAZEN PRESIDENT AND CHIEF OPERATING OFFICER OF WELLS FARGO & CO MR GINN IS EXPECTED TO BECOME CHIEF EXECUTIVE OF THE NEW COMPANY CUTTING HIS TIES TO PACIFIC TELESIS WHICH PROVIDES LOCAL PHONE SERVICE TO CALIFORNIA AND NEVADA HIS REPLACEMENT AS CHAIRMAN AND CHIEF EXECUTIVE OF THE PHONE COMPANY WILL BE PHIL QUIGLEY WHO ALSO WILL MAINTAIN HIS POST AS PRESIDENT OF THE PACIFIC BELL PHONE UNIT LEE COX THE CELLULAR UNIT'S CURRENT CHIEF EXECUTIVE WILL BECOME PRESIDENT AND CHIEF OPERATING OFFICER AS WELL AS A MEMBER OF THE BOARD OF THE SPINOFF PACTEL ALSO SAID MARGARET G GILL HAS BEEN NAMED A VICE PRESIDENT OF LEGAL AND EXTERNAL AFFAIRS AND WILL START IN JANUARY SHE HAS BEEN HEAD OF THE CORPORATE AND SECURITIES GROUP OF THE LAW FIRM PILLSBURY MADISON & SUTRO 9311090018 931109 TECHNOLOGY APPLE TO USE SEAGATE DISK DRIVES SCOTTS VALLEY CALIF SEAGATE TECHNOLOGY INC SAID IT SIGNED A CONTRACT TO SUPPLY APPLE COMPUTER INC WITH VOLUME QUANTITIES OF ITS HIGHCAPACITY 25INCH HARD DISK DRIVES APPLE WILL INTEGRATE THE SEAGATE DRIVE THE ST9235N INTO ITS PORTABLE COMPUTER PRODUCTS SEAGATE SAID THE MAKER OF DATA STORAGE PRODUCTS DECLINED TO DISCLOSE THE VALUE OF THE CONTRACT 9311090017 931109 DIVIDEND NEWS ARNOLD INDUSTRIES INC ARNOLD INDUSTRIES INC LEBANON PA DECLARED A 2FOR1 STOCK SPLIT AND SAID IT WILL RAISE ITS QUARTERLY DIVIDEND 18 THE TRUCKING AND WAREHOUSE COMPANY SAID IT INTENDS TO PAY 10 CENTS QUARTERLY AFTER THE SPLIT EQUIVALENT TO 20 CENTS ON A PRESPLIT BASIS THE COMPANY HAS BEEN PAYING 17 CENTS QUARTERLY THE SPLIT IS EFFECTIVE DEC 27 FOR SHARES OF RECORD NOV 22 THE COMPANY SAID THIRDQUARTER NET INCOME ROSE 23 TO 74 MILLION OR 56 CENTS A SHARE ON AN 18 GAIN IN REVENUE TO 723 MILLION RECENT RESULTS HAVE BEEN AFFECTED BY THE BANKRUPTCY FILING OF A COMPETITOR 9311090016 931109 BUSINESS BRIEF POWERSOFT CORP PURCHASE OF WATCOM CORP FOR 44 MILLION IS PLANNED POWERSOFT CORP BURLINGTON MASS SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE CLOSELY HELD WATCOM CORP WATERLOO ONTARIO FOR ABOUT 44 MILLION IN STOCK POWERSOFT SAID OWNERS OF WATCOM WOULD RECEIVE ABOUT 14 MILLION POWERSOFT SHARES BOTH COMPANIES MAKE SOFTWAREDEVELOPMENT TOOLS USED TO WRITE APPLICATION SOFTWARE FOR SOCALLED CLIENT/SERVER COMPUTING IN WHICH COMPUTER JOBS ARE SHARED BETWEEN CENTRAL COMPUTERS AND DESKTOP COMPUTERS THE PLANNED POOLINGOFINTEREST ACQUISITION REQUIRES APPROVAL FROM BOTH BOARDS AND WATCOM SHAREHOLDERS POWERSOFT SAID IT EXPECTS TO COMPLETE THE PURCHASE IN EARLY 1994 IN NASDAQ STOCK MARKET TRADING POWERSOFT FELL 875 CENTS TO 33375 9311090015 931109 INTERNATIONAL YELTSIN CLEARS THE FINAL DRAFT OF CONSTITUTION BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIAN PRESIDENT BORIS YELTSIN APPROVED THE FINAL DRAFT OF A NEW RUSSIAN CONSTITUTION THAT WOULD EXPAND PRESIDENTIAL POWERS AND FORMALLY GRANT CITIZENS THE RIGHT TO OWN PROPERTY THE DRAFT IS TO BE SUBMITTED TO VOTERS FOR APPROVAL IN A NATIONAL REFERENDUM DEC 12 THE SAME DAY THAT RUSSIA WILL HOLD ELECTIONS FOR A NEW BICAMERAL LEGISLATURE TO REPLACE THE SOVIETERA PARLIAMENT THAT MR YELTSIN DISSOLVED ALTHOUGH THE TEXT OF THE NEW CONSTITUTION WASN'T MADE PUBLIC TOP PRESIDENTIAL AIDE SERGEI FILATOV SAID THE DRAFT ENVISIONS A REPUBLIC WITH A VERY STRONG EXECUTIVE POWER ACCORDING TO RUSSIA'S INTERFAX NEWS AGENCY EARLIER REPORTS INDICATED THAT THE DRAFT CONSTITUTION WHICH WAS PREPARED LARGELY BY AIDES TO MR YELTSIN WILL GRANT TO RUSSIA'S PRESIDENT THE AUTHORITY TO SELECT BOTH THE CABINET AND THE PRIME MINISTER AND IN AN ATTEMPT TO KEEP RUSSIA FROM SPLITTING APART THE DRAFT WOULD LIMIT THE AUTONOMY OF RUSSIA'S DISPARATE REGIONS MR YELTSIN'S SUPPORTERS ARGUE THAT THE PRESIDENT'S VICTORY IN LAST APRIL'S NATIONAL REFERENDUM OBVIATES THE NEED TO CARRY OUT THE EARLY ELECTIONS HE HAD AGREED TO IN FACT HOWEVER ABOUT HALF OF RUSSIA'S VOTERS AT THE TIME HAD ACTUALLY CALLED FOR EARLY PRESIDENTIAL ELECTIONS IT ISN'T CLEAR EXACTLY WHY MR YELTSIN IS BREAKING HIS PLEDGE THOUGH IT IS SURE TO FUEL CRITICISM THAT HE IS INTERESTED LESS IN BUILDING DEMOCRACY THAN IN CONSOLIDATING HIS POWER SOME BELIEVE HE FEARS THAT HE COULD LOSE AN EARLY ELECTION ESPECIALLY IF THE ECONOMY FAILS TO RECOVER BEFORE THEN DURING THE PAST TWO DAYS SENIOR RUSSIAN LEADERS HAVE BEEN SCRAMBLING TO DEFEND THE PRESIDENT'S APPARENT SHIFT IN TACTICS PREMIER VIKTOR CHERNOMYRDIN SAID IN VIENNA THAT THE PRESIDENT'S INTENTION TO SERVE OUT HIS TERM SEEMS ABSOLUTELY RIGHT ACCORDING TO THE OFFICIAL ITARTASS NEWS AGENCY YEGOR GAIDAR FIRST DEPUTY PRIME MINISTER SAID HE TOO SUPPORTS MR YELTSIN'S DECISION THOUGH HE CONCEDED THAT IT MIGHT PROVE UNPOPULAR 9311090014 931109 WHO'S NEWS IBM IS SAID PLANNING TO TAP JOHNSON TODAY TO HEAD NEW DIVISION ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP IS PLANNING TODAY TO NAME WILLIAM R JOHNSON JR GENERAL MANAGER OF NETWORKING HARDWARE A NEW DIVISION ACCORDING TO PEOPLE FAMILIAR WITH THE PLAN MR JOHNSON A FORMER DIGITAL EQUIPMENT CORP VICE PRESIDENT CORPORATE MARKETING WILL REPORT TO ELLEN HANCOCK SENIOR VICE PRESIDENT AND GROUP EXECUTIVE FOR NETWORKING AND SOFTWARE SOLUTIONS DIVISIONS THE NEW DIVISION REPORTEDLY WILL INCLUDE WIRELESS COMMUNICATIONS SWITCHES AND NETWORKING CONTROLLERS FOR LOCAL AREA NETWORKS DON HAILE GENERAL MANAGER OF NETWORKING SOFTWARE WILL CONTINUE TO RUN THAT PORTION OF THE BUSINESS BOTH DIVISIONS PREVIOUSLY BELONGED TO NETWORKING SYSTEMS AND ARE BEING SPLIT OFF IN ORDER TO RECEIVE MORE ATTENTION ANALYSTS ESTIMATE THE TOTAL BUSINESS ONE OF THE FASTESTGROWING SECTORS AT IBM GENERATES ABOUT 5 BILLION OF REVENUE ANNUALLY 9311090013 931109 TECHNOLOGY IN THE LAB LAB TURNING COAL INTO OIL AIMS FOR CONSISTENCY AT THE RIGHT PRICE BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL LAPORTE TEXAS BY A BACK ROAD AMID A 15MILE STRETCH OF OIL AND CHEMICAL REFINERIES RESEARCHER EDWARD HEYDORN LOOKS UP AT A NEWLY BUILT 50FOOTTALL STEEL TANK USED TO MAKE OIL OUT OF GASIFIED COAL IT'S REALLY JUST A BIG BEAKER HE SAYS MR HEYDORN RUNS THIS WORKING LABORATORY A TANGLE OF PIPES CHEMICAL REACTORS AND STORAGE BARRELS FLANKED BY OFFICES WHERE ENGINEERS PEER AT COMPUTER SCREENS AND HOPE THEY SEE THE FUTURE ALTHOUGH THE US IS AN OIL IMPORTER IT BOASTS AT LEAST A 300YEAR SUPPLY OF COAL WHAT'S MORE COAL PRICES DON'T HAVE OIL'S VOLATILE HISTORY THE US DEPARTMENT OF ENERGY PREDICTS THAT OIL AND GAS PRICES THROUGH 2010 WILL RISE MORE THAN EIGHT TIMES AS FAST AS COAL THE 36YEAROLD MR HEYDORN A CHEMICAL ENGINEER WORKS FOR AIR PRODUCTS & CHEMICALS INC A MAJOR MAKER OF SPECIALTY CHEMICALS BASED IN ALLENTOWN PA WHICH JOINTLY OPERATES THIS TEXAS LABORATORY IN COOPERATION WITH THE US DEPARTMENT OF ENERGY COAL LIQUEFACTION THE PROCESS OF WRINGING SOMETHING THAT'S WET AND BURNABLE OUT OF SOLID CHUNKS IS A SCIENTIFIC BREAKTHROUGH THAT'S NOW SEVERAL DECADES OLD SO WHY ARE MR HEYDORN AND HIS CREW OF 25 PEOPLE STILL AT IT THE ANSWER IS IN THE JOB DESCRIPTIONS OF FIVE OF HIS ASSISTANTS THREE ARE FINANCIAL CONTROLLERS AND TWO ARE ECONOMIC EVALUATORS THE PRICE OF COAL LIQUEFACTION ISN'T RIGHT YET CURRENT TECHNOLOGY CAN PRODUCE SYNTHETIC OIL FROM ABOUT A HALFTON OF COAL FOR ABOUT 35 A BARREL SAYS JACK SIEGEL ACTING ASSISTANT SECRETARY FOR FOSSIL FUEL AT THE ENERGY DEPARTMENT WHICH SPENDS 35 MILLION A YEAR FOR RESEARCH ON THE PROCESS TROUBLE IS THE CURRENT PRICE OF OIL IS LESS THAN 20 A BARREL BUT MR SIEGEL SAYS FURTHER RESEARCH SHOULD REDUCE THE PRICE OF LIQUEFIED OIL TO BETWEEN 25 AND 30 A BARREL BY THE YEAR 2005 OF COURSE EVEN AT THAT PRICE COAL LIQUEFACTION PROBABLY WOULDN'T BE COMPETITIVE ENOUGH IN TODAY'S MARKET TO WARRANT THE BUILDING OF SIZABLE REFINERIES EXCEPT PERHAPS AS BACKUP SOURCES YET WITH OIL'S RECORD OF EMBARGOES AND THREATS OF MORE SHORTAGES THE US HAS TO PUSH AHEAD WITH SUCH RESEARCH GOVERNMENT AND INDUSTRY OFFICIALS SAY THE OIL INDUSTRY IS ALSO IN ON THE RACE EXXON CORP FOR EXAMPLE IS EXPLORING THE PROCESS IN BATON ROUGE LA LIQUEFACTION'S BACKERS COULD EVENTUALLY FORCE OIL PRICES TO ADJUST SAYS NORMAN HIGBY AN ENERGY ANALYST IN MENLO PARK CALIF THE SCIENTISTS' GOAL SHOULD BE 10 A BARREL THEN THE OIL INDUSTRY DOESN'T SET THE RULES ANYMORE THE ENERGY DEPARTMENT'S MR SIEGEL FORESEES COAL LIQUEFACTION EVENTUALLY ACCOUNTING FOR ABOUT 13 OF THE NATION'S 15 MILLIONBARRELADAY OIL HABIT DISPLACING NEARLY ONETHIRD OF IMPORTED FUEL BUT FOR NOW MR HEYDORN AND HIS TEAM CONTINUE TO TEST VARIOUS COMBINATIONS OF CHEMICAL CATALYSTS HEAT LEVELS AND AIR PRESSURE USED IN TREATING THE COAL HIS PLANT HAS ALREADY TRIED ROUGHLY 1000 SUCH FUSIONS IN THE LAST 10 YEARS I'M SURE WE'LL TRY A THOUSAND MORE AT LEAST BEFORE WE GET WHERE WE WANT TO GO HE SAYS THE LAPORTE EXPERIMENT STATION DOESN'T USE RAW COAL THAT'S BECAUSE THE EARLIEST STAGE OF LIQUEFACTION HEATING COAL TO A GASIFIED STATE IS PERHAPS THE BEST UNDERSTOOD SO MR HEYDORN CHEMICALLY SIMULATES COAL GAS IN A HUGE CONTAINER THE GAS IS THEN GUIDED INTO THE REACTOR VESSEL WHERE IT'S COMBINED WITH HYDROGEN AND OTHER ADDITIVES HERE'S WHERE THE PROCESS STILL NEEDS THE MOST WORK THE COAL GAS THAT ENTERS THE REACTOR IS MADE UP LARGELY OF HOT CARBON MONOXIDE AND HYDROGEN IT MUST BE CHEMICALLY CLEANED OF IMPURITIES BY MIXING WITH A VARIETY OF CHEMICAL CATALYSTS UNDER VARIOUS OPERATING CONDITIONS BECAUSE OF THE FLAMMABLE NATURE OF THE CHEMICAL COMBINATIONS AND THE HUGE VOLUMES 500 GALLONS TESTED AT A TIME A HALFDOZEN SCIENTISTS CONSTANTLY MONITOR COMPUTER SCREENS AND STEERINGWHEEL SIZED VALVES TO MAKE SURE THAT AIR PRESSURE IN THE REACTOR IS UNDER CONTROL AND THAT LEAKS AREN'T OCCURRING VARIOUS VERSIONS OF THE CHEMICAL CATALYSTS MANY OF THEM PATENTED AND ALL OF THEM SECRET ARE STORED IN ROWS OF GLASS BEAKERS SOME ARE STORED FOR MONTHS ON END TO SEE HOW TIME AFFECTS THEIR POTENCY ONE CHALLENGE IS TO FIND BETTER WAYS OF MIXING LARGE AMOUNTS OF THE CHEMICAL CATALYST WITH COAL GAS IN A MANNER SO THAT COOLING IT ALL PRODUCES THE MAXIMUM AMOUNT OF LIQUID IN THE SHORTEST TIME WHEN YOU'RE DOING THIS IN A TEST TUBE THAT YOU CAN HOLD YOUR HAND IT'S EASIER TO GET EVERYTHING TO MIX PERFECTLY BUT IT'S A SIGNIFICANT CHANGE TO WORK WITH HUNDREDS OF GALLONS AT A TIME AT THAT LEVEL IT'S MUCH HARDER TO GET ALL THE GAS TO MAKE THE BEST CONTACT WITH THE CHEMICAL CATALYST SAYS MR HEYDORN WHEN THE COAL GAS COOLS TO ABOUT 90 DEGREES FAHRENHEIT THE LIQUID IT FORMS IS OFTEN A FILMY WHITISH SUBSTANCE SIMILAR IN APPEARANCE TO SOME CAR WAXES THAT'S AT ITS BEST OTHER TIMES CERTAIN CHEMICAL COMBINATIONS PRODUCE A THICK PASTE BASICALLY LIKE MUD SAYS MR HEYDORN IF THE TEXTURE OF THE SYNTHETIC FUEL ALLOWS IT'S POURED INTO BARRELS AND TESTED FOR POTENCY TO MAKE SURE IT PRODUCES BRITISH THERMAL UNITS COMPARABLE TO AMOUNTS DERIVED FROM REAL OIL THE RESEARCH IS AIMED AT CONSISTENCY FOR THE RIGHT PRICE SAYS THE ENERGY DEPARTMENT'S MR SIEGEL WE HAVE TO PROVE THIS TECHNOLOGY IS COMPETITIVE IN ORDER TO GET COMPANIES TO PUT UP BILLIONS OF DOLLARS IN NEW CAPITAL TO BUILD COAL LIQUEFACTION REFINERIES RESEARCHERS ESTIMATE THE EXPENSE OF BUILDING SUCH A REFINERY AT ABOUT 1 BILLION BUT BEFORE SUCH INVESTMENT CAN PAY OFF TEAMS LIKE MR HEYDORN'S MUST KEEP TO THE DAILY GRIND OF RESEARCH THERE PROBABLY WON'T BE A MOMENT WHEN WE YELL EUREKA HE SAYS WE'LL JUST KEEP MAKING A SERIES OF SMALL STEPS THAT FINALLY ARRIVE AT THE CHEMICAL PROCESS THAT MAKES THIS ECONOMICALLY FEASIBLE ON A LARGE SCALE 9311090012 931109 LAW LEGAL BEAT RULINGS COULD HURT FDIC SUITS AGAINST OFFICIALS OF FAILED THRIFTS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL DEPOSIT INSURANCE CORP SAID TWO RECENT COURT RULINGS COULD CAUSE THE AGENCY TO LOSE MORE THAN HALF OF THE LAWSUITS NOW PENDING AGAINST OFFICIALS OF FAILED THRIFTS AND BANKS THE RULINGS IN SEPARATE CASES DECIDED BY FEDERAL CIRCUIT COURTS IN NEW ORLEANS AND RICHMOND VA EFFECTIVELY DISALLOW A TACTIC THAT HAD BEEN USED BY FEDERAL BANK AND THRIFT REGULATORS TO MAKE CLAIMS AGAINST FORMER OFFICIALS WELL AFTER STATE DEADLINES FOR SUCH CLAIMS HAD LAPSED THE COURT RULINGS AFFECT CASES IN WHICH THE GOVERNMENT THROUGH THE FDIC OR THE RESOLUTION TRUST CORP IS SUING FORMER OFFICERS AND DIRECTORS FOR APPROVING SHAKY OR FRAUDULENT LOANS BY FINANCIAL INSTITUTIONS THAT LATER FAILED THE FDIC CURRENTLY HAS 140 CASES PENDING AGAINST FORMER OFFICIALS OF DEFUNCT BANKS AND THRIFTS THE DOLLAR AMOUNT OF CLAIMS IN THOSE CASES ISN'T KNOWN A SPOKESMAN SAID BUT THE AGENCY HAS SETTLED 65 SIMILAR CASES SO FAR THIS YEAR AND COLLECTED A TOTAL OF 1202 MILLION AN FDIC SPOKESMAN SAID 40 TO 60 OF THE AGENCY'S CASES COULD BE ADVERSELY AFFECTED BY THESE DECISIONS WE ARE TALKING A LARGE DOLLAR AMOUNT THE EFFECT IS BROAD BECAUSE THE HARSHEST OF THE TWO RULINGS WAS DELIVERED BY THE FIFTH US CIRCUIT COURT OF APPEALS WITH JURISDICTION OVER LOUISIANA MISSISSIPPI AND MOST IMPORTANT TEXAS OF THE FDIC'S PENDING CASES AGAINST OFFICERS AND DIRECTORS A FULL ONEFOURTH INVOLVE FAILED TEXAS INSTITUTIONS THE AGENCY SPOKESMAN SAID BOTH APPEALSCOURT CASES PLACE SHARP NEW LIMITS ON THE TIMING OF GOVERNMENT LAWSUITS AGAINST FORMER BANK AND THRIFT OFFICIALS ALTHOUGH SUCH SUITS ARE FILED IN FEDERAL COURT MOST ARE GOVERNED BY STATE STATUTES OF LIMITATION WHICH SET VARYING TIME LIMITS FOR BRINGING CLAIMS THE TIME LIMITS HAVE BEEN PROBLEMATIC FOR FEDERAL BANKING AND THRIFT REGULATORS FOR YEARS PARTICULARLY IN CLAIMS INVOLVING BAD LOANS FOR EXAMPLE A THRIFT'S BOARD COULD APPROVE A LOAN TO A BORROWER IT KNOWS TO BE A DEADBEAT TWO YEARS AND A DAY BEFORE THE THRIFT FAILED THEN ESCAPE LIABILITY BECAUSE THE STATE'S STATUTE OF LIMITATIONS REQUIRES CLAIMS TO BE FILED WITHIN TWO YEARS THE FDIC AND RTC HAD BEEN ABLE TO SKIRT STATE STATUTES OF LIMITATIONS BY CLAIMING THAT THE BOARDS OF MOST FAILED BANKS AND THRIFTS WERE SO DOMINATED BY BAD OR NEGLIGENT DIRECTORS THAT THE BOARDS COULDN'T STOP THE BAD LOANS UNDER THAT THEORY KNOWN AS ADVERSE DOMINATION THE REGULATORS HAVE WON EXTENSIONS OF TIME LIMITS FOR FILING CLAIMS AGAINST OFFICERS AND DIRECTORS LAST MONTH THE FIFTH US CIRCUIT COURT OF APPEALS SAID BANK AND THRIFT REGULATORS CAN NO LONGER USE THE DOCTRINE IN CASES INVOLVING DIRECTORS WHO WERE SIMPLY NEGLIGENT ABOUT THEIR INSTITUTIONS' LENDING PRACTICES IF ADVERSE DOMINATION THEORY IS NOT TO OVERTHROW THE STATUTE OF LIMITATIONS COMPLETELY IN THE CORPORATE CONTEXT IT MUST BE LIMITED TO THOSE CASES IN WHICH THE CULPABLE DIRECTORS HAVE BEEN ACTIVE PARTICIPANTS IN WRONGDOING OR FRAUD RATHER THAN SIMPLY NEGLIGENT THE APPEALS COURT SAID IN A SIMILAR CASE THE FOURTH US CIRCUIT COURT OF APPEALS IN RICHMOND SAID FEDERAL REGULATORS WILL HAVE TO SHOW THAT DIRECTORS ACTIVELY TRIED TO CONCEAL THEIR MISMANAGEMENT OF LOANS FROM SHAREHOLDERS OR OTHER OFFICERS WHO COULD HAVE STOPPED THEM THE FDIC WHICH BROUGHT THE CLAIMS IN EACH CASE SAID IT IS STUDYING BOTH RULINGS BEFORE MAKING FURTHER APPEALS STROH BREWERY CO'S SWEDISH BIKINI TEAM ADS WHICH FEATURED A GROUP OF BUXOM SCANTILY CLAD WOMEN PASSING OUT OLD MILWAUKEE BEER CAN'T BE USED AS EVIDENCE IN A SEXUALHARASSMENT LAWSUIT AGAINST THE BREWERY A STATE JUDGE RULED THE LAWSUIT FILED TWO YEARS AGO BY SEVERAL FEMALE EMPLOYEES AT STROH'S ST PAUL MINN PLANT ALLEGED THAT THE ADS CONTRIBUTED TO A HOSTILE WORK ENVIRONMENT THE WOMEN SAID IN THEIR SUIT THAT THEY WERE SUBJECTED ON THE JOB TO LEWD REMARKS AND SLAPS FROM MALE COLLEAGUES AS WELL AS OTHER FORMS OF HARASSMENT THE WOMEN'S ATTORNEYS ARGUED THAT THE BIKINITEAM ADS REFLECTED A CORPORATE CULTURE AT STROH THAT WAS DEMEANING TO WOMEN THEY SAID THE ADS HELPED EXPLAIN WHY THE ALLEGED HARASSMENT OCCURRED AND WHY IT ALLEGEDLY WENT UNPUNISHED BUT STATE COURT JUDGE M MICHAEL MONAHAN RULED LAST WEEK THAT THE CASE DOESN'T TURN ON THE EXISTENCE OF ANY PARTICULAR CORPORATE CULTURE INSTEAD JUDGE MONAHAN SAID THAT ONLY PROMOTIONAL MATERIAL DISPLAYED WITHIN THE WORK AREAS OF THE ST PAUL PLANT COULD BE INTRODUCED AS EVIDENCE THE WOMEN'S ATTORNEY LORI PETERSON OF MINNEAPOLIS LAW FIRM PETERSON CONNOR & SATRE SAID SHE STILL WILL SEEK TO INTRODUCE SOME OF THE ADS AS EVIDENCE MS PETERSON SAID THE ADS HAD A CONNECTION TO THE WORKPLACE BECAUSE SOME OF THE WOMEN COMPLAINED TO MANAGEMENT ABOUT THEM GEORGE KUEHN STROH GENERAL COUNSEL SAID THE COURT'S DECISION CONFIRMS THE POSITION WE HAVE TAKEN FROM THE START STROH'S ADVERTISING HAD NO DIRECT LINK OR CONNECTION TO THE WORKPLACE ENVIRONMENT THE DETROIT COMPANY MAINTAINS THAT NO SEXUAL HARASSMENT OCCURRED AT THE PLANT ALTHOUGH THERE MAY HAVE BEEN INCIDENTS OF INAPPROPRIATE CONDUCT THE CASE IS SCHEDULED TO GO TO TRIAL IN JANUARY TAX MERGER MCDERMOTT WILL & EMERY A 500LAWYER CHICAGOBASED FIRM PLANS TO MERGE WITH LEE TOOMEY & KENT IN JANUARY LEE TOOMEY A WASHINGTON FIRM WITH 17 LAWYERS SPECIALIZES IN TAX AND EMPLOYEEBENEFITS WORK WITH THE ADDITION OF THE NEW LAWYERS MCDERMOTT WILL WILL HAVE ONE OF THE LARGEST LAWFIRM TAX PRACTICES IN THE COUNTRY WITH ABOUT 125 LAWYERS WADE LAMBERT CONTRIBUTED TO THIS ARTICLE 9311090011 931109 MUTUAL FUNDS SCHWAB'S SWELLING GIRTH HOLDS SWAY IN THE FUND FIELD BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL TO THE MUTUALFUND INDUSTRY CHARLES SCHWAB & CO IS LOOKING MORE AND MORE LIKE THE 500POUND GORILLA THAT GETS WHATEVER IT WANTS CHARLES SCHWAB THE SAN FRANCISCO DISCOUNT BROKER BELIEVE IT IN BARELY 10 MONTHS SCHWAB CUSTOMERS HAVE DOUBLED THEIR HOLDINGS OF MUTUAL FUNDS BOUGHT THROUGH SCHWAB TO 237 BILLION AND THE GROWTH IS ACCELERATING SO FAST THAT SOME MONEY MANAGERS ARE EVEN BUYING SCHWAB STOCK AS A LONGTERM MUTUALFUND PLAY SCHWAB WILL REVOLUTIONIZE THE FUND BUSINESS SAYS ONE SUCH MANAGER RONALD BARON OF BARON ASSET MANAGEMENT IN FIVE YEARS AS SCHWAB'S BOOMING FUNDBROKERAGE BUSINESS EXPANDS SCHWAB'S ASSETS OVERALL WHY SHOULDN'T THEY BE LARGER THAN FIDELITY SCHWAB'S TOTAL ASSETS OF 90 BILLION STILL PALE BESIDE FIDELITY INVESTMENTS' 247 BILLION YET THE SCHWAB INVASION IS ALREADY ROILING THE FUND INDUSTRY SELLING THROUGH SCHWAB IS LIKE BEING IN AN ARMS RACE SAYS TIMOTHY ARMOUR PRESIDENT OF STEINROE MUTUAL FUNDS IT'S A COMPETITIVE NECESSITY SCHWAB'S MOST POTENT WEAPON TO DATE IS ITS 16MONTHOLD ONESOURCE PROGRAM WHICH ALLOWS INVESTORS TO BUY MORE THAN 200 NOLOAD FUNDS WITHOUT PAYING ANY TRANSACTION FEES SMALL AND MIDSIZE FUND GROUPS ARE EAGER TO SELL THROUGH SCHWAB'S BROKERAGE ARM BECAUSE DOING SO CAN QUICKLY BOOST THE SIZE OF THEIR FUNDS OF THE 17 BILLION IN ASSETS AT JANUS FUNDS NEARLY 11 CAME IN THROUGH SCHWAB BROKERAGE ACCOUNTS BUT SUCH GROWTH COMES AT A COST IF A FUND PULLS IN MONEY THROUGH ONESOURCE IT MUST REBATE TO SCHWAB A PORTION OF THE FEES THAT IT OTHERWISE WOULD EARN THE ANNUAL AMOUNT FORGONE IS 025 TO 035 OF THE FUND ASSETS HELD IN SCHWAB ACCOUNTS A SHARP NICK IN FUND MANAGEMENT FEES THAT TEND TO RUN AROUND 1 A YEAR MOREOVER SOME FUND EXECUTIVES WORRY ABOUT SCHWAB'S GROWING HOLD ON THEIR CUSTOMERS A MUTUAL FUND MAY HAVE GOTTEN THOUSANDS OF CUSTOMERS THROUGH SCHWAB BUT THE FUND DOESN'T KNOW WHO THEY ARE SCHWAB MAY PASS ALONG CERTAIN FUNDSHAREHOLDER COMMUNICATIONS TO ITS CUSTOMERS BUT ONLY SCHWAB KNOWS THEIR NAMES AND ADDRESSES YOU DON'T HAVE AS MUCH CONTROL OVER THE MARKETING SAYS MOLLY HART EXECUTIVE EDITOR AT FUND ACTION AN INDUSTRY NEWSLETTER SCHWAB IS ABLE TO CROSSMARKET OTHER THINGS TO YOUR CUSTOMERS SCHWAB POSES A PARTICULAR THREAT TO THE BIG NOLOADFUND FAMILIES BECAUSE IT OFFERS IN EFFECT A HUGE COMPETING FAMILY WITH 700 MUTUAL FUNDS SCHWAB IS DESTROYING THE FUNDFAMILY CONCEPT SAYS MINNEAPOLIS FINANCIAL ADVISER ROBERT MARKMAN WITH SCHWAB YOU CAN CUT ACROSS FUNDFAMILY LINES WITH ONE PHONE CALL AS A PLACE TO BUY MUTUAL FUNDS SCHWAB IS NOW THE REGIONAL SHOPPING MALL MR MARKMAN SAYS THE FUND FAMILIES ARE STRIP MALLS SIGNIFICANTLY NONE OF THE FOUR LARGEST NOLOADFUND GROUPS FIDELITY INVESTMENTS VANGUARD GROUP SCUDDER STEVENS & CLARK INC AND T ROWE PRICE ASSOCIATES INC HAS JOINED ONESOURCE CHARLES VIETH A MANAGING DIRECTOR AT T ROWE PRICE SAYS THE FEE CHARGED BY ONESOURCE WAS TOO HIGH FOR T ROWE PRICE TO PAY OUT OF ITS OWN POCKET HE ADDS CERTAINLY THERE WAS THE CONCERN THAT WE'D LOSE THE DIRECT RELATIONSHIP WITH THE CUSTOMER ALL FOUR GROUPS DO ALLOW THEIR FUNDS TO BE SOLD IN SCHWAB'S OLDER TRANSACTIONFEE PROGRAM INVESTORS PAY 06 ON INVESTMENTS OF AS MUCH AS 15000 SUBJECT TO A MINIMUM CHARGE OF 29 TO BUY AND 10 TO SELL NOLOAD FUNDS SCHWAB IS MAKING WAVES AT FULLSERVICE BROKERAGE HOUSES TOO INCREASINGLY INVESTORS SEEKING ADVICE ARE TURNING TO FEE ONLY FINANCIAL ADVISERS WHO DON'T LIVE OFF COMMISSIONS AS BROKERS DO BUT INSTEAD IMPOSE AN HOURLY OR ASSETBASED CHARGE THESE ADVISERS ARE TAKING HIGHEND CUSTOMERS AWAY FROM THE WIREHOUSESMEANING THE BIG BROKERAGE FIRMS SERVING SMALL INVESTORS SAYS TOM SEIP A SCHWAB EXECUTIVE VICE PRESIDENT SCHWAB'S ALLURE FOR THE FINANCIAL ADVISERS IS SIMPLE IT SOLVES A BIG PAPERWORK PROBLEM SCHWAB CONSOLIDATES INTO ONE STATEMENT A FLOCK OF FARFLUNG DATA DESIRED BY INVESTORS SCHWAB IS A GODSEND FOR PEOPLE LIKE US SAYS WILLIAM VANOVER A BLOOMFIELD HILLS MICH FINANCIAL ADVISER WHO PUTS HIS CLIENTS IN NOLOAD FUNDS UNTIL HE HOOKED UP WITH SCHWAB I WAS DYING IN A SEA OF PAPER SCHWAB GAVE HIM THE BACKOFFICE WE NEED FIDELITY'S DISCOUNTBROKERAGE ARM HAS FOR SEVERAL YEARS CHARGED A TRANSACTION FEE TO SELL MUTUAL FUNDS BUT SEEING SCHWAB'S SUCCESS FIDELITY THIS YEAR SET UP ITS OWN NOTRANSACTIONFEE PROGRAM CALLED FUNDSNETWORK AND BEGAN COURTING FINANCIAL PLANNERS FIDELITY MANAGING DIRECTOR ROGER SERVISON INSISTS FIDELITY'S PROGRAM IS MORE THAN A SCHWAB WANNABE WE THINK WE HAVE A BETTER OFFERING BUT FIDELITY WON'T SAY HOW MUCH MONEY IS IN FUNDSNETWORK EXCEPT TO SAY THE FIGURE IS GROWING RAPIDLY THOUGH FIDELITY HAS SIGNED UP SOME ADVISERS OTHERS VIEW THE BOSTON FUND GIANT AS A COMPETITOR BECAUSE FIDELITY SELLS ADVICE TO BIG CUSTOMERS THROUGH ITS PORTFOLIO ADVISORY SERVICES PROGRAM SOME MUTUALFUND GROUPS WON'T SIGN UP WITH FIDELITY OUT OF FEAR OF COMPETITION THERE'S A FUNDAMENTAL ISSUE HERE WHICH IS THAT WE DON'T VIEW SCHWAB AS BEING IN OUR BUSINESS IN ANY MATERIAL RESPECT SAYS JONATHAN ZESCHIN EXECUTIVE VICE PRESIDENT AT INVESCO FUNDS GROUP DENVER WE DON'T HAVE TO WORRY ABOUT WHETHER OR NOT THEY'RE GOING TO MARKET TO OUR CLIENTS THEIR OWN FUNDS SCHWAB MANAGES A PAIR OF STOCKINDEX FUNDS AND SOME BASIC BOND FUNDS BUT MR ZESCHIN DOESN'T SEE THEM AS COMPETITIVE WITH INVESCO'S ACTIVELY MANAGED FUNDS MUTUAL FUNDS ARE MAKING OTHER MOVES TO COUNTER SCHWAB'S GROWTH STEINROE HAS AROUND 190 MILLION IN ASSETS IN ITS COUNSELOR PROGRAM WHICH ASSIGNS AN INDIVIDUAL PHONE REPRESENTATIVE AND HIGHER SERVICE INCLUDING SUGGESTIONS ABOUT ALLOCATING MONEY AMONG MUTUAL FUNDS TO CUSTOMERS WITH 50000 OR MORE INVESTED IN STEINROE FUNDS MR ARMOUR THE FIRM'S PRESIDENT SAYS COUNSELOR CUSTOMERS LOVE THE PERSONALIZED SERVICE AND THAT HE HOPES WILL KEEP THEM INVESTING DIRECTLY IN STEINROE FUNDS RATHER THAN THROUGH SCHWAB SEVERAL OTHER FUND GROUPS INCLUDING DREYFUS STRONG FUNDS AND FIDELITY HAVE SIMILAR SERVICES MEANWHILE SCHWAB HAS GOTTEN A TOEHOLD IN THE FASTGROWING 401K RETIREMENT PLAN BUSINESS BY ALLYING ITSELF WITH COOPERS & LYBRAND AND BANKERS TRUST WHICH WILL HANDLE THE ADMINISTRATIVE AND RECORDKEEPING FUNCTIONS OF RUNNING DEFINEDCONTRIBUTION PLANS A GROWING NUMBER OF INVESTORS THINK SCHWAB'S GROWING CLOUT IN MUTUAL FUNDS MAKES THE FIRM A GREAT INVESTMENT YESTERDAY WILLIAM HARTMAN AT JP MORGAN RECOMMENDED BUYING SCHWAB STOCK HE EXPECTS SCHWAB TO EARN 190 A SHARE THIS YEAR UP FROM 139 LAST YEAR MR BARON OF BARON ASSET MANAGEMENT GOT INTERESTED IN SCHWAB'S STOCK WHEN HE SAW HOW MUCH MONEY ONESOURCE HAD PROPELLED INTO FUNDS LIKE HIS WITH ONESOURCE SCHWAB JUST GOT INTO THE MONEYMANAGEMENT BUSINESS HE SAYS BECAUSE SCHWAB COLLECTS FEES ON A POOL OF ASSETS IN ITS FIRST 15 MONTHS ONESOURCE COLLECTED 7 BILLION IN ASSETS MORE THAN THE TOTAL ASSETS OF SUCH ESTABLISHED FUND GROUPS AS STRONG FUNDS ONESOURCE ASSETS DWARF THOSE IN SIMILAR PROGRAMS AT OTHER DISCOUNT BROKERS SUCH AS JACK WHITE & CO ONE THREAT ON THE HORIZON IS THAT THE SCHWAB MONEY RUSHING INTO FUNDS' COFFERS MIGHT LEAVE JUST AS QUICKLY IN A MARKET DOWNTURN MONEY PULLED INTO A FUND THROUGH SCHWAB IS CLEARLY GOING TO BE A MORE VOLATILE PART OF YOUR ASSET BASE THAN MONEY INVESTED DIRECTLY WITH A FUND SAYS STEINROE'S MR ARMOUR MANY FUND GROUPS WEATHERED THE CRASH OF 1987 WITH LIMITED PAIN BECAUSE PANICKED INVESTORS SIMPLY SWITCHED INTO THE SAME FUND GROUP'S MONEYMARKET FUND THAT WON'T HAPPEN THE NEXT TIME AROUND SAYS MR ARMOUR THE MONEYMARKET FUND IN SCHWAB'S PROGRAM IS SCHWAB'S OPEN SESAME LINDNER DIVIDEND FUND HAS REOPENED TO NEW INVESTORS THE FUND CLOSED ITS DOORS IN MARCH AMID A TORRENT OF INVESTOR MONEY THAT REACHED 40 MILLION A DAY SINCE THEN MANAGER ERIC RYBACK HAS REDUCED THE FUND'S CASH HOLDINGS TO 1 DOWN FROM 20 WHEN THE FUND CLOSED WITH THE NEW CASH THAT HE EXPECTS TO FLOW IN MR RYBACK PLANS TO BUY SOME HARDHIT UTLITY STOCKS AND EVEN A HANDFUL OF DRUG COMPANIES THAT ARE PAYING ATTRACTIVE YIELDS 9311090010 931109 WHO'S NEWS GENESCO INC GENESCO INC NASHVILLE TENN HENRY D SIEGAL 41 YEARS OLD WAS NAMED PRESIDENT OF THE GREIF COS DIVISION WHICH MAKES MEN'S CLOTHES UNDER THE PERRY ELLIS PERRY ELLIS PORTFOLIO CHAPS AND POLO UNIVERSITY CLUB BY RALPH LAUREN LABELS MR SIEGAL FORMERLY PRESIDENT OF CRYSTAL BRANDS JEWELRY SUCCEEDS NORMAN FRYMAN 63 WHO RESIGNED TO TAKE A JOB WITH BIDERMANN INDUSTRIES IN NEW YORK GENESCO MAKES FOOTWEAR AND MEN'S CLOTHES 9311090009 931109 BUSINESS BRIEFS HARSCO CORP'S BMYCOMBAT SYSTEMS DIVISION WAS AWARDED A SUBCONTRACT VALUED AT UP TO 5 MILLION TO PROVIDE ENGINEERING SERVICES FOR CASDE CORP TORRANCE CALIF TO SUPPORT CASDE'S CONTINUING DEVELOPMENT OF THE MARINE CORPS' PROPULSION SYSTEM DEMONSTRATOR VEHICLE AGCO CORP HAS AGREED TO ACQUIRE THE WHITENEW IDEA FARM EQUIPMENT DIVISION FROM ALLIED PRODUCTS CORP FOR 50 MILLION TO 60 MILLION UNDER THE AGREEMENT AGCO WILL RECEIVE ALL THE DIVISION'S NET ASSETS WHICH INCLUDE DEALER ACCOUNTS RECEIVABLE INVENTORIES A MANUFACTURING FACILITY IN COLDWATER OHIO AND A MASTER REPLACEMENTPARTS WAREHOUSE IN KEWANEE ILL PARAMOUNT COMMUNICATIONS INC'S PARAMOUNT PUBLISHING UNIT WILL JOIN THE EDUCATIONAL TESTING SERVICE TO DEVELOP PRINT AND ELECTRONIC PRODUCTS TO EVALUATE AND IMPROVE EMPLOYEE LITERACY SPX CORP COMPLETED THE SALE OF ITS TRUTH DIVISION TO FKC PLC OF HALIFAX BRITAIN FOR APPROXIMATELY 100 MILLION THE TRUTH DIVISION PRODUCES HARDWARE FOR WINDOWS DOORS AND SKYLIGHTS CAE INC'S CAE ELECTRONICS UNIT RECEIVED A CONTRACT TO SUPPLY A FOKKER 70/100 FULLFLIGHT AIRCRAFT SIMULATOR AND MAXVUE VISUAL SYSTEM TO FRIENDSHIP SIMULATION CO OF THE NETHERLANDS CAE VALUED THE CONTRACT AT 13 MILLION CANADIAN DOLLARS US101 MILLION SOUTHERN PACIFIC RAIL CORP SAID ITS RAILROAD UNIT SIGNED A 10YEAR 415 MILLION AGREEMENT FOR INTEGRATED SYSTEMS SOLUTIONS CORP AN INTERNATIONAL BUSINESS MACHINES CORP UNIT TO HANDLE ITS INFORMATIONTECHNOLOGY FUNCTION 9311090008 931109 MUNI RULES BOARD WARNS SEC PROJECT MAY UPSET MARKET STAFF REPORTER OF THE WALL STREET JOURNAL SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE MUNICIPAL SECURITIES RULEMAKING BOARD SAID THE SECURITIES AND EXCHANGE COMMISSION'S PROJECT TO IMPROVE DISCLOSURE IN THE MUNICIPALBOND MARKET COULD DISRUPT THE MARKET UNLESS CERTAIN STEPS ARE TAKEN THE SEC IS CONTEMPLATING A RULE TO BAR DEALERS FROM RECOMMENDING MUNIS TO CUSTOMERS UNLESS THE ISSUERS OF THE BONDS PROVIDE CONTINUING DISCLOSURE ON CERTAIN MATTERS BUT THE RULEMAKING BOARD A SELFREGULATORY BODY SUBJECT TO SEC OVER SIGHT SAID MEASURES ARE NEEDED TO TRACK DISCLOSURES AND MAKE DATA AVAILABLE ON A FAIR AND EQUAL BASIS WITHOUT SUCH STEPS THE BOARD WARNED THE RULE COULD BRING THE SECONDARY MUNI MARKET TO A HALT AND CAUSE PROBLEMS FOR MUTUAL FUNDS HOLDING MUNIS IN A LETTER TO SEC CHAIRMAN ARTHUR LEVITT THE RULEMAKING BOARD SAID IT BELIEVES THE TRACKING AND DISSEMINATION FUNCTIONS CAN BEST BE PERFORMED BY ITS CENTRAL REPOSITORY FOR MUNI DISCLOSURE DOC UMENTS THIS FACILITY EXISTS BUT NOW FOCUSES ON DISCLOSURES RELATED TO MUNI SALES IN THE PRIMARY MARKET THE RULEMAKING BOARD SAID IT'S WILLING TO EXPAND ITS SYSTEM TO PROVIDE FOR THE CENTRAL TRACKING OF DISCLOSURES AND FOR THE COSTEFFECTIVE DISSEMINATION OF DATA TO MARKET PARTICIPANTS BUT IT SAID ITS ABILITY TO DO SO DEPENDS ON HAVING THESE ISSUES ADDRESSED BY THE SEC IN A COMING GUID ANCE TO MUNI ISSUERS THE SEC HAS EMBARKED ON A PROJECT TO IMPROVE SECONDARY MARKET DISCLOSURE IN THE MUNI MARKET REGULATORS AND MANY MARKET PARTICIPANTS COMPLAIN THAT MANY ISSUERS ROUTINELY FAIL TO DISCLOSE INFORMATION MATERIAL TO THE VALUE OF THEIR OUTSTANDING SECURITIES 9311090007 931109 ABREAST OF THE MARKET STOCKS POST MODERATE INCREASES DESPITE WORRY OVER INFLATION DATA BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCKS MANAGED MODERATE GAINS DESPITE JITTERS AHEAD OF INFLATION REPORTS DUE TODAY AND TOMORROW STABILIZATION IN THE BOND MARKET AND BARGAIN HUNTING AFTER THE RECENT PLUNGE IN STOCKS BUOYED THE MARKET MUCH OF THE DAY BUT THE ENTHUSIASM AND TRADING VOLUME WAS DAMPED BY THE IMPENDING NEWS THE DOW JONES INDUSTRIAL AVERAGE WHICH ROSE 17 POINTS AT ITS SESSION HIGH ENDED WITH A GAIN OF JUST 447 POINTS OR 012 TO 364790 IT HAD TUMBLED 73 POINTS OVER TWO SESSIONS LAST WEEK BEFORE RECOVERING 1845 POINTS FRIDAY BROADBASED INDEXES MIRRORED THE INDUSTRIAL AVERAGE WHILE ADVANCING ISSUES LED DECLINERS 1176 TO 917 ON THE NEW YORK STOCK EXCHANGE VOLUME SLIPPED TO 231210000 SHARES ON THE EXCHANGE FROM AN ACTIVE 331280000 SHARES FRIDAY STOCKS SUFFERED LAST WEEK AS BONDS TUMBLED AFTER THE RELEASE OF SEVERAL STRONGERTHANEXPECTED ECONOMIC REPORTS WHILE AN IMPROVING ECONOMY HELPS CORPORATE PROFITS IT ALSO RAISES INFLATION FEARS AMONG BOND INVESTORS AND THAT CAN TRANSLATE INTO HIGHER INTEREST RATES THE STOCK MARKET RALLY ALL YEAR HAS BEEN BUILT ON EXPECTATIONS OF CONTINUED LOW INTEREST RATES THESE FACTORS TRADERS SAID HAVE MADE TODAY'S OCTOBER REPORT ON THE LABOR DEPARTMENT'S PRODUCER PRICE INDEX AND TOMORROW'S READING ON ITS CONSUMER PRICE INDEX ESPECIALLY IMPORTANT TO INVESTORS THE STANDARD & POOR'S 500STOCK INDEX ADDED 064 OR 014 TO 46021 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 052 OR 020 TO 25472 AND THE DOW JONES EQUITY MARKET INDEX ROSE 075 OR 017 TO 43514 THE NASDAQ COMPOSITE INDEX MEANWHILE JUMPED 322 OR 042 TO 76621 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX INCREASED 127 OR 027 TO 47660 INSURANCE STOCKS WERE AMONG THE STRONGEST YESTERDAY STEPHEN PIVACEK A SENIOR VICE PRESIDENT AT CONNING & CO SAID THE GENERALLY STEADY ACTION IN BONDS COUPLED WITH RECENT POSITIVE EARNINGS NEWS IN THE INSURANCE GROUP TRIGGERED THE ADVANCE INSURANCE STOCKS HE SAID HAVE BEEN BATTERED FOR MORE THAN A MONTH AETNA LIFE JUMPED 2 TO 62 3/4 TRAVELERS INCREASED 1 1/4 TO 33 5/8 AMERICAN INTERNATIONAL ADDED 1 1/8 TO 87 5/8 AND TRANSAMERICA ADVANCED 1 3/8 TO 56 3/4 PARAMOUNT COMMUNICATIONS CLIMBED 1 7/8 TO 82 1/8 AFTER VIACOM SWEETENED ITS OFFER FOR THE NEW YORK MEDIA GIANT TO 102 BILLION VIACOM FELL 5/8 TO 56 7/8 ON THE AMEX WHILE SHARES OF QVC NETWORK A RIVAL BIDDER SLIPPED 3/8 TO 52 7/8 IN NASDAQ STOCK MARKET TRADING MYLAN LABORATORIES ROSE 2 1/2 TO 32 5/8 THE DEATH SATURDAY OF ITS CHAIRMAN ROY MCKNIGHT ADDED TO THE RECENT SPECULATION THAT THE PITTSBURGH GENERIC DRUG MANUFACTURER COULD BE ACQUIRED A SUCCESSOR WASN'T NAMED QUALCOMM JUMPED 3 TO 72 3/4 ON THE NASDAQ AFTER THE SAN DIEGO WIRELESS COMMUNICATIONS SERVICE COMPANY REPORTED EARNINGS OF 27 CENTS A SHARE FOR THE FOURTH QUARTER ENDED SEPT 26 ANALYSTS SURVEYED BY IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM HAD EXPECTED A PROFIT OF ABOUT 18 CENTS A SHARE IT HAD A LOSS OF THREE CENTS A SHARE LAST YEAR EQUITABLE COS ADDED 1 1/8 TO 26 3/8 AFTER THE NEW YORK FINANCIAL SERVICES COMPANY REPORTED HIGHERTHANEXPECTED THIRDQUARTER NET INCOME OF 36 CENTS A SHARE PROFIT AT ITS DONALDSON LUFKIN & JENRETTE SECURITIES UNIT ROSE 15 IN THE PERIOD GEICO ADDED 1/2 TO 54 3/4 THE WASHINGTON DC INSURANCE COMPANY REPORTED NET INCOME OF 762 MILLION FOR THE THIRD QUARTER UP 83 FROM 416 MILLION A YEAR EARLIER THE COMPANY SAID ITS OPERATIONS HAVE REBOUNDED FROM UNDERWRITING LOSSES ABSORBED LASTYEAR DUE TO CLAIMS RELATED TO HURRICANE ANDREW TELECOM CORP OF NEW ZEALAND SLUMPED 4 TO 45 1/2 ON POLITICAL UNCERTAINTIES FOLLOWING PARLIAMENTARY ELECTIONS IN THAT COUNTRY SATURDAY THE NEW ZEALAND LABOR PARTY GARNERED MORE SUPPORT THAN EXPECTED AGAINST THE INCUMBENT NATIONAL PARTY MEXICORELATED ISSUES DROPPED ON CONCERNS OVER THE FATE OF THE NORTH AMERICAN FREE TRADE AGREEMENT SAID DAVID BUTLER HEAD OF TRADING AT KEMPER FINANCIAL SERVICES PRESIDENT CLINTON HAS SAID THAT HE DOESN'T YET HAVE ENOUGH SUPPORT AMONG LAWMAKERS TO GAIN CONGRESSIONAL APPROVAL OF THE TRADE PACKAGE AKZO SLUMPED 3 1/4 TO 48 3/4 ON THE NASDAQ AFTER THE DUTCH CHEMICAL COMPANY DISCLOSED PLANS TO ACQUIRE SWEDEN'S NOBEL INDUSTRIER MUCH OF NOBEL IS OWNED BY A STATECONTROLLED HOLDING COMPANY MEDCO CONTAINMENT JUMPED 1 1/4 TO 38 1/4 ON THE NASDAQ AFTER THE FEDERAL TRADE COMMISSION SAID IT WOULDN'T CHALLENGE THE MONTVALE NJ COMPANY'S PLANS TO BE ACQUIRED BY MERCK & CO MERCK BASED IN WHITEHOUSE STATION NJ WILL PAY 6 BILLION IN CASH AND STOCK FOR THE COMPANY MERCK SHARES EASED 1/8 TO 32 TOBACCO STOCKS EASED AFTER RALLYING FRIDAY ON HOPES THAT CIGARETTE PRICES WOULD RISE RJR NABISCO SLIPPED 1/8 TO 6 3/8 ON MARKETLEADING VOLUME OF 86 MILLION SHARES PHILIP MORRIS LOST 3/4 TO 54 3/4 AMERICAN BRANDS FELL 1 5/8 TO 33 1/8 SYNERGEN ROSE 1 1/4 TO 14 1/4 ON THE NASDAQ AFTER THE BOULDER COLO COMPANY RELEASED POSITIVE RESULTS FROM A CLINICAL TEST OF ITS ANTRIL DRUG A PLANNED TREATMENT FOR RHEUMATOID ARTHRITIS SEVERAL OTHER BIOTECHNOLOGY STOCKS ALSO ADVANCED CHIRON WAS UP 2 1/2 TO 78 3/4 ON THE NASDAQ 9311090006 931109 SCHWAB SEEKS HISPANIC BUSINESS SAN FRANCISCO DISCOUNT BROKERAGE FIRM CHARLES SCHWAB & CO SAID IT PLANS TO OPEN A MIAMIAREA OFFICE AIMED AT US HISPANICS AND INVESTORS IN LATIN AMERICA THE OFFICE BASED IN CORAL GABLES FLA WILL BEGIN OFFERING INVESTMENT ADVICE TO CUSTOMERS ON NOV 18 SCHWAB SAID THAT LESS THAN 15 OF THE NATION'S 24 MILLION HISPANIC RESIDENTS CURRENTLY USE THE SERVICES OF A BROKERAGE FIRM 9311090005 931109 FERRUZZI SHAREHOLDERS TO DECIDE ON SUING PRICE WATERHOUSE MILAN THE BOARDS OF FERRUZZI FINANZIARIA SPA AND MONTEDISON SPA WILL ASK SHAREHOLDERS TO APPROVE TAKING LEGAL ACTION AGAINST PRICE WATERHOUSE FOR ALLEGEDLY NEGLIGENT AUDITING AT BOARD MEETINGS YESTERDAY FERRUZZI AND MONTEDISON DIRECTORS ALSO WARNED THAT FOREIGN BANKS MUST APPROVE THE DEBTRIDDEN FERRUZZI GROUP'S RESTRUCTURING PLAN BEFORE NOV 30 OR THE GROUP'S FUTURE COULD BE SERIOUSLY JEOPARDIZED THE FERRUZZI AND MONTEDISON BOARDS SAID THEY DECIDED TO SUE PRICE WATERHOUSE AFTER A REVIEW BY NEW EXECUTIVES SHOWED BEHAVIOR AND OMISSIONS BY PRICE WATERHOUSE IN OBVIOUS BREACH OF OBLIGATIONS IMPOSED ON THEM IN THEIR ROLE AS LEGAL AUDITORS UNDOUBTEDLY REPREHENSIBLE BEHAVIOR AND OMISSIONS DUE AT THE VERY LEAST TO NEGLIGENCE AND LACK OF SKILL CAUSED VERY SERIOUS DAMAGE TO FERRUZZI FINANZIARIA AND MONTEDISON THE GROUP SAID PRICE WATERHOUSE ARGUES THAT IT WAS KEPT IN THE DARK ABOUT FINANCIAL IRREGULARITIES BY THE GROUP'S FORMER MANAGEMENT ALL OF WHOM ARE NOW UNDER CRIMINAL INVESTIGATION A PRICE WATERHOUSE SPOKESWOMAN IN LONDON SAID THE FIRM DISPUTES THE ALLEGATIONS AND WE'RE GOING TO RESIST THEM STRENUOUSLY IN AUGUST CONSOB ITALY'S STOCKMARKET WATCHDOG REVOKED APPROVAL OF PRICE WATERHOUSE'S THREEYEAR CONTRACT WITH FERRUZZI NOTING THAT THE AUDITING FIRM WAS NOT TECHNICALLY SUITABLE TO AUDIT FERRUZZI'S ACCOUNTS PRICE WATERHOUSE IS APPEALING THAT RULING MEANWHILE MONTEDISON SAID YESTERDAY THAT IT ALSO WILL CANCEL ITS CONTRACT WITH PRICE WATERHOUSE PRICE WATERHOUSE REVOKED ITS CERTIFICATION OF FERRUZZI'S 1992 ACCOUNTS AFTER SURPRISE LOSSES WERE ANNOUNCED AT THE ANNUAL SHAREHOLDER MEETINGS LAST SUMMER THOSE LOSSES ARE NOW PART OF A CRIMINAL INVESTIGATION 9311090004 931109 MARKETING MARKETERS SELL PEN AS SIGNATURE OF STYLE BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL PEN MANUFACTURERS HAVE READ THE HANDWRITING ON THE WALL REALIZING THAT THEIR PRODUCTS COULD WELL BECOME ANACHRONISMS IN THE ELECTRONIC INFORMATION AGE THEY ARE TRYING TO TRANSFORM THE WAY AMERICANS BUY USE AND EVEN THINK ABOUT PENS PEN MARKETERS WANT TO SELL CONSUMERS ON THE IDEA THAT PENS ARE FASHION ACCESSORIES JEWELRY EVEN WORKS OF ART RATHER THAN CHEAP UTILITARIAN AND DISPOSABLE IN AGGRESSIVE HOLIDAY ADVERTISING AND YEARROUND PUBLIC RELATIONS MANEUVERS MANUFACTURERS ARE TRYING TO ELEVATE THE PEN FROM PACKAGED GOOD TO WRITING INSTRUMENT WHILE PUSHING PENMANSHIP PARTICULARLY WITH A FOUNTAIN PEN AS A MEANS OF SELFEXPRESSION IN A TECHNOLOGICAL AGE THIS CATEGORY IS IN ITS INFANCY SAYS HAROLD ROSENBERG DIRECTOR OF SALES FOR GILLETTE CO'S WATERMAN PEN CO IN FIVE YEARS A BETTER WRITING INSTRUMENT WILL BE A PART OF A PERSON'S WARDROBE JUST LIKE A WATCH PEOPLE LIKE CHRISTOPHER LOCKE EDITOR OF THE INTERNET BUSINESS REPORT NEWSLETTER ARE PRECISELY THE REASON WHY PEN MAKERS ARE TURNING UP THE VOLUME I FIND IT ALMOST IMPOSSIBLE TO WRITE WITH A PEN SAYS MR LOCKE WHOSE USE OF PENS IS CONFINED TO JOTTING DOWN VOICEMAIL MESSAGES AND BESIDES HE ADDS EVERY TIME I GET A FANCY PEN I LOSE IT IT'S LIKE UMBRELLAS IT'S THE JUNKERS THAT STAY WITH YOU INDEED SALES OF PENS MECHANICAL PENCILS AND THEIR ACCESSORIES WERE FLAT LAST YEAR AT 15 BILLION ACCORDING TO THE WRITING INSTRUMENT MANUFACTURERS ASSOCIATION IN MARLTON NJ THE ASSOCIATION DOESN'T BREAK OUT FIGURES BY MANUFACTURER OR PRICE BUT SALES OF BALL POINTS WERE FLAT AT ABOUT 631 MILLION ROLLER BALLTYPE PENS WERE DOWN 4 TO 207 MILLION AND FOUNTAIN PENS DECLINED 10 TO 45 MILLION AT THOSE PRICES THE PEN SEEMS TO TAP INTO PEOPLE'S REPRESSED URGE TO CONSUME CONSPICUOUSLY MONTBLANC IS EVEN APPENDING A 1980SSTYLE SLOGAN TO NEWSPAPER ADS FOR THE NEW BALLPOINT MEISTERSTUCK CIGAR THE LEAN TIMES ARE OVER BUT THE COMPANY CONTENDS THE REAL REASON FOR ITS STEADY GROWTH IS MORE SUBTLE THAN MERE MATERIALISM BACK IN THE 1950S IT SENT AN IMPORTANT MESSAGE IF YOUR BUSINESS CORRESPONDENCE WAS PERFECTLY TYPED SAYS BILL BROWN PRESIDENT AND CHIEF EXECUTIVE OF THE US OPERATIONS OF MONTBLANC SIMPLO GMBH BASED IN HAMBURG GERMANY IT MEANT YOU WERE POWERFUL ENOUGH TO HAVE A SECRETARY WHO COULD TYPE A WHOLE PAGE WITHOUT A MISTAKE BUT NOW THAT EVERYONE HAS A WORD PROCESSOR ERRORFREE CORRESPONDENCE ISN'T A POWER SYMBOL ANYMORE INSTEAD HE SAYS IT'S THE NOTE HANDWRITTEN WITH A FOUNTAIN PEN AND APPENDED TO THE BOTTOM OF A LETTER THAT INDICATES POWER KENNETH KEMPER A DIVORCE ATTORNEY AGREES AN AVID PEN COLLECTOR MR KEMPER RECENTLY ATTENDED A PEN FAIR AT MENASH A SPECIALTY PEN SHOP IN MIDTOWN MANHATTAN WITH 12 LUXURY PENS IN HIS SHIRT AND INSIDE JACKET POCKETS IN THE SAME WAY OTHER PEOPLE DECIDE WHAT TIE TO WEAR IN THE MORNING I DECIDE WHAT PENS I'M GOING TO USE HE SAYS HE USES THEM TO WRITE A BROAD FOUNTAIN PEN SIGNATURE ON DOCUMENTS HE SAYS AND ADDS HANDWRITTEN NOTES TO CORRESPONDENCE SO THEY'LL KNOW IT'S ME CAMILLE LAVINGTON AN EXECUTIVE PRESENTATION CONSULTANT WHO TOTES FOUR FANCY PENS OF HER OWN ALSO BELIEVES A FINE WRITING INSTRUMENT IS A MUST FOR CORPORATE OFFICERS MEN AND POWER HAVE A FRAGILE COEXISTENCE SHE SAYS EVERYTHING ABOUT THE CHIEF EXECUTIVE MUST BE PERMANENT BUT SHE WOULDN'T ADVISE CHIEF EXECUTIVES TO WEAR THEIR PENS IN THEIR SHIRT POCKETS THEY DON'T TAKE ORDERS LIKE A SHOE CLERK SHE SAY THEY GIVE ORDERS MONTBLANC AND A HOST OF SMALLER EUROPEAN MAKERS DO A BRISK BUSINESS IN VERY EXPENSIVE LIMITED EDITIONS CATERING TO MR KEMPER AND AN AFFLUENT CROWD OF COLLECTORS MONTBLANC ISSUED 4810 OCTAVIAN PENS WHICH SOLD FOR 1650 APIECE OMAS AN ITALIAN MANUFACTURER REPRESENTED IN THE US BY MARCOVICI DESIGNS INC OF BOSTON ISSUED 30 ALMIRANTE PENS FASHIONED WITH 18CARAT GOLD IMAGES COMMEMORATING CHRISTOPHER COLUMBUS'S VOYAGE TO THE NEW WORLD ITS SUGGESTED RETAIL PRICE 35000 EVEN PILOT CORP OF JAPAN KNOWN FOR ITS DISPOSABLE PLASTIC PENS IS GETTING IN ON THE ACT IN JANUARY PILOT PLANS TO INTRODUCE IN THE US AN EXPENSIVE LINE OF FOUNTAIN PENS UNDER THE BRAND NAME NAMIKI WITH PRICES RANGING FROM 98 TO 6000 NOBODY IN OUR INDUSTRY HAS EVER BEEN SUCCESSFUL SELLING BOTH HIGHPRICED AND LOWPRICED PENS SAYS RONALD G SHAW PRESIDENT AND CHIEF EXECUTIVE OF PILOT'S US OPERATIONS WE WANT TO BUILD AN IMAGE AND REPUTATION FOR EXTREME QUALITY FROM JAPAN MEANWHILE OTHER COMPANIES ARE TRYING TO CULTIVATE THE MASS MARKET'S TASTE FOR PRICIER PENS GILLETTE WHICH BOUGHT THE WATERMAN PEN LINE IN 1987 AND PARKER PEN LTD OF ENGLAND THIS YEAR SAYS ITS GOAL IS TO ATTRACT NEW CUSTOMERS WITH A WIDE ARRAY OF PENS PRICED BELOW 100 ADVERTISING AIMS TO SELL PENS AS AN AFFORDABLE BADGE OF AFFLUENCE A PRINT AD FOR PARKER INSIGNIA PENS LISTS PRODUCT ATTRIBUTES LIKE ERGONOMICALLY ENGINEERED AND DESIGNED TO AVOID SKIDDING OVER A HAZY IMAGE OF A SPORTS CAR AND THE AD NOTES OVER A CLEAR PHOTO OF THE PENS IF IT WERE A CAR YOU COULDN'T AFFORD IT A WATERMAN AD GUSHES WHILE STYLE IS KEY INDIVIDUALITY IS STILL EVERYTHING UNDER A PHOTO OF THE FIVE MCCOOEY SIBLINGS EACH OF WHOM OWNS A DIFFERENT WATERMAN BUT SUCH IMAGES MAY BE LOST ON THE MORE CAUTIOUS CONSUMER OF THE 1990S CAROL COLMAN A NORTH SALEM NY CONSULTANT WHO STUDIES CONSUMER BEHAVIOR SAYS CONVERTING CUSTOMERS OF INEXPENSIVE PENS TO LUXURY WRITING INSTRUMENTS WILL BE AN UPHILL BATTLE MOST PEOPLE THESE DAYS JUST AREN'T LOOKING FOR MARKS OF IDENTIFICATION SHE SAYS PEOPLE ARE JUDGING PRODUCTS BY EFFECTIVENESS NOT BY THE ADVERTISED LABEL 9311090003 931109 MR GORE BRING YOUR OWN CHART BY DAVID ORR IF AL GORE WANTS TO SCORE A FEW POINTS IN TONIGHT'S DEBATE ON LARRY KING'S TALK SHOW HE SHOULD USE ONE OF ROSS PEROT'S OWN CHARTS TO DISPROVE ONE OF MR PEROT'S PET THEORIES PICTURE THE SCENE MR PEROT AS USUAL PULLS OUT HIS CHART SHOWING THE DECLINING PERCENTAGE OF MANUFACTURING JOBS IN THE US HE PROCLAIMS THAT AMERICA HAS LOST ITS MANUFACTURING BASE BLAMING IT ON CHEAP FOREIGN LABOR AND ELITE CORPORATE BOSSES HE CONJURES UP THE GREAT SUCKING SOUND OF THE NORTH AMERICAN FREE TRADE AGREEMENT PULLING EVEN MORE JOBS OUT OF AMERICA AND DRIVING THAT PERCENTAGE LINE DOWN FARTHER THE VICE PRESIDENT CALMLY ASKS MR KING IF THE FORMAT WILL ALLOW FOR DUELING CHARTS THEN HE WHIPS OUT A CHART OF HIS OWN AND ASKS SOME QUESTIONS FIRST MR GORE RUNS HIS FINGER ALONG THE DASHED LINE SHOWING THE DECLINING PERCENTAGE OF MANUFACTURING JOBS BUT STOPS AT 1970 HE ASKS MR KING HOW MUCH THE PERCENTAGE HAD DECLINED FROM THE EARLY 1950S MR KING SAYS ABOUT EIGHT POINTS TO 26 FROM 34 MR GORE THEN TURNS TO MR PEROT AND ASKS WHAT CAUSED THOSE MANUFACTURING JOBS TO DISAPPEAR DURING THE 1950S AND 1960S WEREN'T THOSE THE GOOD OLD DAYS BEFORE FOREIGN IMPORTS STOLE MARKET SHARE AND BEFORE US COMPANIES MOVED FACTORIES ABROAD TO TAKE ADVANTAGE OF CHEAP LABOR WHILE MR PEROT STAMMERS MR GORE TURNS BACK TO HIS HOST HE ASKS MR KING TO ACT AS A FORECASTER IN THE EARLY 1970S AND TO PREDICT BASED ON THE PRIOR 20YEAR TREND WHERE THAT PERCENTAGE LINE WOULD BE IN THE EARLY 1990S MR KING SAYS THAT ANOTHER EIGHT POINT DROP WOULD PUT IT AT 18 IN 1990 MR GORE THEN ASKS IF MR KING'S PROJECTION IS BASED ON CHEAP IMPORTS OR FOREIGN FACTORIES MR KING SAYS NO IT'S BASED ON A CONTINUATION OF WHATEVER WAS AT WORK IN THE PRIOR TWO DECADES GETTING BACK TO MR PEROT THE VICE PRESIDENT ASKS AGAIN WHAT CAUSED THE PERCENTAGE DECLINE IN MANUFACTURING JOBS IN THE 1950S AND 1960S IF IT WASN'T CHEAP IMPORTS AND FOREIGN LABOR BY NOW MR PEROT HAS TO ADMIT THAT THE DECLINE WAS DUE TO IMPROVED PRODUCTIVITY BETTER TECHNOLOGY BETTER TRAINING AND BETTER PRODUCTION PROCESSES MR GORE THEN STATES THE OBVIOUS SINCE THE DOWNWARD TREND WAS NOT CAUSED BY CHEAP IMPORTS OR FOREIGN LABOR DEFEATING NAFTA WILL NOT STOP THE DECLINE BUT HE'S NOT THROUGH MR GORE WHIRLS BACK TO MR KING IMITATING PAUL HARVEY AND ASKS IF HE'D LIKE TO HEAR THE REST OF THE STORY POINTING TO THE SOLID LINE ON THE CHART WHICH REPRESENTS THE VALUE OF ALL MANUFACTURED PRODUCTS AS A PERCENTAGE OF THE TOTAL ECONOMY HE SPILLS THE DIRTY LITTLE SECRET THAT MR PEROT NEVER SHOWS THE REAL MANUFACTURING BASE THE OUTPUT OF THE MANUFACTURING SECTOR HAS NOT DECLINED AT ALL SINCE 1950 SO ENDS THE BATTLE OF THE CHARTS BUT OF COURSE THERE IS MORE TO BE SAID MR GORE GOES ON TO ASSERT THAT ALTHOUGH THERE IS NO MANUFACTURING CRISIS IN TERMS OF PRODUCTION THERE IS INDEED A CRISIS OF JOBS THE ANSWER HE ADDS IS NOT STIRRING UP NEGATIVE PASSIONS AND SCARING PEOPLE WITH SOME FALSE BOGEYMAN RATHER IT IS FINDING CONSTRUCTIVE SOLUTIONS TO THE PROBLEMS CAUSED BY THE TRAUMATIC TRANSITION THAT THE WORLD ECONOMY IS GOING THROUGH RIGHT NOW ONE OBVIOUS SOLUTION IN ADDITION TO LEARNING NEW SKILLS IS TO OPEN FOREIGN MARKETS TO US PRODUCTS TO CREATE MORE JOBS THE US NEEDS TO SELL MORE OF ITS PRODUCTS TO DEVELOPING COUNTRIES TO BUY OUR PRODUCTS THEY MUST HAVE RISING INCOMES IN BOTH CASES NAFTA FITS THE BILL WHATEVER WE LEARN FROM TONIGHT'S DEBATE ONE THING IS CLEAR THE LESS DEVELOPED COUNTRIES OF THE WORLD ARE GOING TO GROW WHETHER WE LIKE IT OR NOT STOPPING NAFTA OR ANY OTHER TRADE AGREEMENT THAT OPENS MARKETS TO OUR PRODUCTS WILL NOT REDUCE THE COMPETITION IT WILL ONLY WEAKEN OUR COMPETITIVE INSTINCTS CAUSE US TO MISS OUT ON THOSE ENORMOUS NEW MARKETS AND MAKE OUR JOB CRISIS EVEN WORSE 9311090002 931109 YOUR MONEY MATTERS DIMMING RETURNS SHOCK UTILITY INVESTORS BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL LIKE THOUSANDS OF OTHER INVESTORS FED UP WITH LOW CERTIFICATE OF DEPOSIT YIELDS MATTHEW PATULSKI A PITTSBURGH INVESTOR THOUGHT HE HAD DEVELOPED THE PERFECT INVESTMENT STRATEGY EVERY TIME ONE OF MR PATULSKI'S CDS MATURED HE USED THE MONEY TO BUY SHARES IN A UTILITYSTOCK MUTUAL FUND OR A UTILITY STOCK INSTEAD OF MAKING 3 I WAS MAKING DOUBLEDIGIT RETURNS HE SAYS I WAS DOING GREAT UNTIL LAST WEEK THAT IS THANKS TO RISING LONGTERM INTEREST RATES AND WORRIES ABOUT TOUGHER REGULATION AND MORE COMPETITION FOR ELECTRIC UTILITIES THE DOW JONES UTILITY AVERAGE SUFFERED ITS BIGGEST WEEKLY DECLINE IN NEARLY THREE YEARS PLUNGING 135 POINTS OR 56 TO 22726 THE AVERAGE IS DOWN 11 FROM ITS AUG 31 PEAK UTILITY MUTUAL FUNDS PLUNGED 37 FOR THE WEEK ENDED NOV 4 ACCORDING TO LIPPER ANALYTICAL SERVICES INC MR PATULSKI'S RUSHMORE AMERICAN GAS MUTUAL FUND FELL 46 LAST WEEK I DIDN'T EXPECT UTILITIES TO DROP SO FAST HE SAYS ALTHOUGH HE'S HOLDING ON FOR THE MOMENT MR PATULSKI WORRIES THAT HIS INVESTMENT MIGHT GO DOWN THE TUBES HE ISN'T ALONE IN HIS PAIN SPURRED BY A DECADELONG RISE IN UTILITYSTOCK PRICES THOUSANDS OF INVESTORS HAVE MOVED MONEY FROM CDS AND MONEYMARKET ACCOUNTS TO UTILITIES TO ACCOMMODATE THEM MUTUALFUND COMPANIES OPENED 10 NEW UTILITY FUNDS DURING THE THIRD QUARTER ALONE BRINGING THE TOTAL TO 58 UP FROM THE 37 IN EXISTENCE AT THE BEGINNING OF THE YEAR SAYS LIPPER ANALYTICAL INVESTORS POURED ANOTHER 4 BILLION INTO THESE FUNDS IN THE THREE MONTHS ENDED SEPT 30 BRINGING THEIR TOTAL INVESTMENT IN UTILITY FUNDS TO 28 BILLION A LARGE INCREASE FROM THE 17 BILLION INVESTED AS OF JAN 1 AND EVEN AS UTILITY FUNDS WERE GETTING BEATEN DOWN LAST WEEK THE INFLOW CONTINUED ACCORDING TO ROBERT ADLER PRESIDENT OF AMG DATA SERVICES AN ARCATA CALIF FIRM THAT TRACKS MUTUALFUND FLOWS OF THE 58 UTILITY FUNDS ONLY FOUR HAD SMALL OUTFLOWS MR ADLER SAYS INVESTMENT PROS WORRY THAT SHOCK WAVES LIKE THOSE THAT HIT UTILITY INVESTORS LAST WEEK MAY BE IN STORE FOR INVESTORS WHO HAVE MOVED CD MONEY INTO LONGTERM BOND FUNDS IF INTEREST RATES CONTINUE TO RISE LAST WEEK THE AVERAGE BOND FUND WAS OFF ABOUT HALF OF ONE PER CENT BUT LONGTERM BOND FUNDS WERE HIT HARDER SAYS A MICHAEL LIPPER PRESIDENT OF LIPPER ANALYTICAL BENHAM GROUP'S TARGET 2020 LONGTERM BOND FUND TOOK A 6 HIT AND BENHAM'S TARGET 2015 BOND FUND FELL 51 PRICES OF LONGTERM BOND FUNDS FALL WHEN LONGTERM INTEREST RATES RISE BECAUSE BONDS IN THE FUND LOSE VALUE BUT MANY INVESTORS DIDN'T TAKE THAT INTO CONSIDERATION WHEN THEY INVESTED IN THE FUNDS SAYS JAY GOLDINGER PRESIDENT OF CAPITAL INSIGHT INC A BEVERLY HILLS CALIF BROKERAGE FIRM PEOPLE HAVE BEEN CONDITIONED BY THE LAST 10 YEARS TO THINK THAT INTEREST RATES WERE GOING TO KEEP FALLING FOREVER HE SAYS AS FOR UTILITY INVESTORS MANY PROS SAY IT MAY BE TIME TO RETHINK OR AT LEAST REJIGGER THEIR STRATEGY SOME ADVISERS EVEN SUGGEST THAT IT MAY BE TIME TO SELL SOME OF THE HOLDINGS IF YOU CAN AFFORD TO TAKE A CAPITAL GAIN WHY INVESTMENT PROS ARE TROUBLED BY A NUMBER OF ADVERSE DEVELOPMENTS FIRST UTILITY STOCKS CLOSELY FOLLOW THE LONGTERM BOND MARKET WHEN INTEREST RATES DECLINE AS THEY HAVE DURING THE PAST SEVERAL YEARS UTILITY YIELDS BECOME MORE ATTRACTIVE WHEN INTEREST RATES ARE LOW UTILITY COMPANIES CAN REDUCE THEIR BORROWING COSTS BUT WHEN INTEREST RATES MOVE UP UTILITY STOCKS LOSE FAVOR AND IT COSTS UTILITIES MORE TO FINANCE THEIR PROJECTS SOME PROS THINK INTEREST RATES ARE AT OR NEAR THEIR BOTTOM AND WILL RISE AS THE ECONOMY PICKS UP STEAM WHEN THAT HAPPENS PRICES OF UTILITY FUNDS THAT EMPHASIZE YIELDS WILL BE HAMMERED PROS FEAR MOST AFFECTED WILL BE CONSERVATIVE UTILITY FUNDS THAT BUY SHARES OF ELECTRIC UTILITIES TO GENERATE STABLE HIGH YIELDS SAYS CHARLES CAIN PRESIDENT OF CAIN ASSET MANAGEMENT A NEW YORK INVESTMENTMANAGEMENT FIRM FOR EXAMPLE FRANKLIN UTILITIES A FUND THAT OPERATES IN THIS STYLE FELL 53 LAST WEEK ON A TOTALRETURN BASIS WHICH INCLUDES PRICE CHANGE AND DIVIDENDS IN ADDITION EARNINGSGROWTH PROSPECTS OF THE BIG ELECTRIC UTILITIES ARE LIMITED SAYS WARREN SPITZ MANAGING DIRECTOR OF PRUDENTIAL UTILITIES FUNDS A AND B MR SPITZ FORESEES VERY WEAK EARNINGS GROWTH FOR THE NEXT FIVE YEARS BECAUSE OF INCREASING COMPETITION AND TOUGHER STATE REGULATION THERE'S MORE DOWNSIDE RISK THAN UPSIDE POTENTIAL FOR THESE FUNDS SAYS BARRY STRUDWICK PARTNER IN EAGER STREET ASSET MANAGEMENT A BALTIMORE MONEYMANAGEMENT FIRM MR STRUDWICK SAYS HE HAS BEGUN TO LIGHTEN UP ON UTILITY FUND POSITIONS FOR HIS CLIENTS INVESTORS SHOULD RETHINK DIVING INTO FUNDS THAT ARE HEAVILY CONCENTRATED IN SUPPOSEDLY CONSERVATIVE DOMESTIC UTILITIES SAYS TONY MAYORKAS UTILITYFUND ANALYST FOR MORNINGSTAR MUTUAL FUNDS INC INSTEAD IF YOU WANT TO PUT A SMALL PORTION OF YOUR INVESTMENT PORTFOLIO IN UTILITIES MR CAIN SUGGESTS DIVERSIFIED UTILITY FUNDS THAT HAVE STAKES IN TELEPHONE AND TELECOMMUNICATIONS COMPANIES AND NATURALGAS UTILITIES ALONG WITH THEIR ELECTRIC HOLDINGS THIS WAY YOU MIX A VERY POWERFUL GROWTH THEME TELECOMMUNICATIONS WITH THE MORE MUNDANE BASE OF THE ELECTRIC UTILITIES HE SAYS IF INTEREST RATES REMAIN LOW THIS STYLE OF INVESTING COULD CONTINUE TO BE SUCCESSFUL BUT EVEN THESE DIVERSIFIED FUNDS GOT HAMMERED LAST WEEK IN THE WORLDWIDE SELLOFF FOR EXAMPLE FIDELITY UTILITIES INCOME FUND FELL 33 AND FIDELITY SELECT UTILITIES FUND TUMBLED 37 ANOTHER APPROACH IS TO BUY UTILITY FUNDS THAT HAVE LARGE STAKES IN UTILITY COMPANIES OUTSIDE THE US SINCE THE US HAS ONLY 35 OF THE WORLD'S UTILITIES IT MAKES SENSE TO EXPAND INVESTMENT HORIZONS SAYS SALLY HAFF COPORTFOLIO MANAGER OF FRANKLIN GLOBAL UTILITIES FUND BUT BUYING OVERSEAS UTILITIES BRINGS NEW PROBLEMS SUCH AS CURRENCY RISKS AND POLITICAL INSTABILITY MS HAFF SAYS THE CURRENCY RISK IS PARTIALLY OFFSET BY THE FACT THAT FRANKLIN GLOBAL INVESTS MOST OF ITS OVERSEAS ASSETS IN EMERGING MARKETS WHOSE CURRENCIES ARE PEGGED TO THE US DOLLAR MS HAFF THINKS POLITICAL RISK IS MITIGATED BECAUSE DEVELOPING COUNTRIES NEED STRONG UTILITIES TO ATTRACT NEW INVESTMENT LOCAL GOVERNMENTS IN EMERGING MARKETS MUST HAVE THEIR UTILITIES IN PLACE AS PART OF THEIR INFRASTRUCTURE IF THEY WANT TO CONTINUE STRONG ECONOMIC GROWTH SHE SAYS NEVERTHELESS HER FRANKLIN GLOBAL UTILITIES FUND FELL 46 LAST WEEK EVEN THOUGH IT IS UP 226 SO FAR THIS YEAR EVEN DIVERSIFIED AND GLOBALUTILITIES FUNDS FACE A NUMBER OF NEGATIVE TRENDS SOME PROS SAY US TELEPHONE STOCKS HAVE MOVED UP SHARPLY PARTLY BECAUSE OF THE TELECOMMUNICATIONS MERGER BOOM BUT IT WILL BE MANY YEARS BEFORE THESE NEW VENTURES SHOW PROFITS SAYS MR LIPPER GLOBAL UTILITIES NOT TIED TO THE US DOLLAR MAY FIND RETURNS TO US INVESTORS CUT BECAUSE OF THE DOLLAR'S RISE AGAINST OTHER CURRENCIES SAYS MR LIPPER FOR UTILITYFUND INVESTORS WHO CAN AFFORD TO TAKE SOME CAPITAL GAINS THIS WOULDN'T BE A BAD TIME TO TAKE SOME OF THEIR WINNINGS OFF THE TABLE 9311090001 931109 BUSINESS WORLD THE FORGOTTEN FIREBREAK A PRICE ON RISK BY TIM W FERGUSON EVEN THOUGH A MAJOR EARTHQUAKE HAD STRUCK THE LA AREA ONLY TWO YEARS BEFORE THE FIRST TYPE OF CALAMITY MENTIONED IN THAT YELLOWED DOCUMENT IS FIRE THE SCOPE OF THE FEAR WAS DIFFERENT THEN AN ACCOMPANYING MAP SHOWED THE COASTAL CANYONS ABOVE SANTA MONICA AS BARREN WILDERNESS BROKEN ONLY BY THE SNAKING OF SUNSET BOULEVARD TO THE SEA WITHIN A FEW YEARS THE VACATION COTTAGES NESTLED ON THE HILLSIDES WOULD BE JOINED BY YEARROUND HOMES THE TREND ACCELERATED OVER THE LAST 30 YEARS AS AFFLUENCE DISPERSED URBANITES TO THE RANGES THAT RIM THE LA BASIN THESE LAST TWO WEEKS SEVERAL OF THOSE AREAS WERE ABLAZE MANY SAT MESMERIZED IN FRONT OF TELEVISION SCREENS WATCHING THE DESTRUCTION NOW FOLLOWS A LOT OF TALK ABOUT HOW THE LAW COULD HEAD OFF SUCH EVENTS POPULATION PATTERNS HAVE CHANGED BUT WILDLAND FIRES HAVE REMAINED THE MOST PERSISTENT PLAGUE FOR CALIFORNIANS THEY TOUCH A RELATIVE FEW ONLY ONE OF EVERY 15000 STATE HOMES WERE LOST THESE LAST TWO WEEKS AND THE 25000 HOMELESS FIGURE BANDIED ABOUT WAS A GROSS EXAGGERATION BUT 15 BRUSHFIRES SINCE 1961 HAVE DESTROYED AT LEAST 100 STRUCTURES EACH MAJOR QUAKES ARE BIGGER KILLERS BUT THEIR LESS REGULAR TERROR IS MOMENTARY AND RARELY MAKES FOR GOOD TV FOOTAGE NOT SO THE TORCH FOR MANY REASONS THE LATEST BROADCAST CAPABILITY THE HEROICS OF FIREFIGHTERS THE CHANCE TO SEIZE ON ONE MORE METAPHOR OF THE SUPPOSEDLY VANISHING CALIFORNIA DREAM THIS FALL'S CONFLAGRATIONS HAVE BEEN A MEDIA SPECTACULAR AS IT HAPPENED MOST OF THESE FIRES WERE NOT ACTS OF GOD BUT OF SUSPECTED ARSON EVEN SO THE BLANKET OF BRUSH THAT AWAITED INCENDIARIES IS A NATURAL COAT OF CALIFORNIA AS RICHARD MINNICH A UNIVERSITY OF CALIFORNIA FIRE ECOLOGIST NOTED LAST FRIDAY ON LOCAL PUBLIC RADIO'S WHICH WAY LA PROGRAM IT BURNS OFF EVERY 30 OR 40 YEARS UNLESS SUPPRESSED IN MEXICO'S BAJA CALIFORNIA WITH SIMILAR TERRAIN SUCH PATCHWORK CHARRING GOES ON TODAY BY CONTRAST NATURE'S RESTORATIVE CYCLE IS NOT PERMITTED LET ALONE ABETTED IN POPULOUS SOUTHERN CALIFORNIA THE SAME THING IS TRUE IN MANY PARTS OF THE US WHERE PRIVATE OR PUBLIC DEVELOPMENTS OR POLICIES TOY WITH FORCES THAT ARE ULTIMATELY BEYOND THEIR CONTROL THUS CALIFORNIA IS THE FAVORITE SETTING FOR ESSAYS ON THE HUBRIS OF MAN DEFYING HIS ENVIRONMENT AND SUFFERING FOR HIS FOLLY IN FACT HOWEVER BRAINPOWER HELPS HIM TO MASTER HIS SURROUNDINGS AND NATURE IN TURN IS REMARKABLY ADAPTIVE TO CHANGES HE IMPOSES WHAT IS LACKING IS THE SORT OF CHECK THAT ANOTHER INTRINSIC ORGANISM THE MARKETPLACE COULD EXERCISE ON OVERREACHING SPECIFICALLY THE COSTS FOR INSURANCE LOANS AND EMERGENCY SERVICES HAVE BEEN SOCIALIZED IN A WAY THAT INDUCES MANY TO TAKE UNDUE RISKS IN CALIFORNIA EVERYBODY GETS FIRE INSURANCE OUT OF A STATESPONSORED POOL IF NECESSARY LENDERS KNOW THIS AND FINANCE HOMES THAT WOULD NEVER GET BUILT OR WHOSE MORTGAGES WOULD BE CALLED IN TOMORROW WERE THE TRUE FIRE DANGER INTERNALIZED WHEN DISASTER STRIKES SUBSIDIZED LOANS ARE OFFERED ROUTINELY AND THE TAX RATE FOR FIRE PROTECTION IS THE SAME WHETHER YOU'RE IN A BACK COUNTRY WOODFRAME OR A BOTTOMFLOOR CONDO DOWNTOWN BECAUSE THE MARKET CHECK ON EXCESS RISK IS GREATLY NEGATED LAWMAKERS RESORT TO OTHER DEVICES VOLUMINOUS BUILDING CODES SOMETIMES PROMPTED BY INSURERS SEEK TO MITIGATE HAZARDS THERE'S NO QUESTION THEY SUCCEED BUT HOW OFTEN DO THEY MANDATE MINUTIAE THAT DIVERT RESOURCES FROM BETTER USES AUTHORITIES ARE LIKELY TO USE THESE FIRES AND THE MIDWESTERN FLOODS AS WELL TO GAIN PROHIBITIONS ON SOME DEVELOPMENT IF THE LOCALS AREN'T RESTRICTIVE ENOUGH WASHINGTON IS INDICATING IT WILL USE FUNDING LEVERS TO COMPEL ACTION THIS IS LIKELY TO TIE UP COURTS FURTHER WITH PROPERTYRIGHTS CASES HOMEOWNERS AND THEIR ATTORNEYS AREN'T ALWAYS ON THE ANGELS' SIDE IN THIS THEY HAVE FOUGHT ATTEMPTS TO DO CONTROLLED BURNINGS THAT WOULD CONTAIN WILDFIRE EPOSURE BECAUSE LIFE IN THE IMMEDIATE VICINITY WOULD BE UNPLEASANT FOR A DAY OR TWO THEY CLAIM TO HAVE BETTER REASONS BUT ALL IT TAKES IS ONE OBJECTOR IN AN AREA TO SCOTCH A PREVENTIVE BURN THEY MAY FLOUT A FIRE MARSHAL'S ORDER TO TRIM BACK A THICKET TO MAKE A HOUSE MORE DEFENSIBLE AND THEREFORE LESS LIKELY TO IMPERIL NEIGHBORS SUCH MAINTENANCE CAN BE COSTLY OR THE ISSUE MAY COME DOWN TO AESTHETICS WHAT NEWAGE RUSTIC WANTS HIS PLACE TO LOOK LIKE A TRACT HOME SOMETIMES IT'S NOT THE PROPERTY OWNER BUT ECOINTERESTS THAT AGGRAVATE THE DANGER FOR EXAMPLE THE CALIFORNIA COASTAL COMMISSION STAFF MAY OBJECT TO CLEARANCE OF COMBUSTIBLES IF THE SANCTITY OF SHRUBBERY IS AT STAKE TWO SHADES OF GREEN ARE AT WORK HERE ENVIRONMENTALISTS WHO OBJECT TO MAN'S ENCROACHMENTS IN GENERAL AND PSEUDOENVIROS WHO OBJECT TO ENCROACHMENTS SUBSEQUENT TO THEIR OWN THE PSEUDOS ARE THE SORT TO WANT GOOD WATER PRESSURE BUT OPPOSE BUILDING RESERVOIRS THEY ARE INFLUENTIAL IN THE CITIES OF MALIBU AND LAGUNA BEACH BOTH NEARLY WIPED OUT IN RECENT DAYS TRUE GREENS ARE MORE CONSISTENT BUT ARE PRONE TO LET ABSOLUTISM GET IN THE WAY OF SOUND MANAGEMENT FOR INSTANCE THE AIRQUALITY DISTRICT THAT LAYS REGULATION ON SOUTHERN CALIFORNIA AND UNTIL LATELY WAS ENVIRODOMINATED HAS ITSELF BEEN A BARRIER TO CONTROLLED BURNS SMOKE IS BAD AFTER ALL ECOPOLITICS ASIDE THE MARKET IS UNLIKELY TO COME BACK AS A DISCIPLINING FORCE THE HUMANITARIAN IMPULSES AND CONVENTIONS OF OUR TIME WHETTED BY INSTANT AND INTIMATE MEDIA MAKE IT TOO EASY TO CHEAT WHEN BEDRAGGLED AND CRYING PEOPLE NEED HELP THE ELECTORATE HAS LITTLE USE FOR INSURANCECOMPANY STRICTURES MOREOVER INDEMNITY TAKES PRUDENCE WHICH AMERICANS INCREASINGLY LACK MOST CALIFORNIANS ARE UNINSURED FOR EARTHQUAKES WHEN THE BIG ONE COMES WHO THINKS THAT ONLY THOSE WHO'VE PREPARED WILL BE MADE WHOLE THE PREVENTIVE MEASURES THAT LOS ANGELES'S FIRST DISASTER COUNCIL HAD IN MIND WERE OF THE STOPGAP VARIETY ORGANIZING RESPONSE AND PLOTTING CONTAINMENT OF NATURE'S FURY THE TYPES OF CENTRALIZED PLANNING ON THE AGENDA TODAY WERE IN THEIR INFANCY PRIVATE CHARITY WAS STILL THE MAIN PLAYER IN RELIEF EFFORTS WHEREAS NOW IT HAS A SUPPORTING ROLE THE STATE IS PRIMARY GUIDER AND GIVER WE STILL USE THAT OLD PHRASE ACT OF GOD BUT TODAY MAN IN HIS WISDOM AND THROUGH HIS GOVERNMENT HAS HIS OWN RULES TO APPLY SOURCE INSURANCE INFORMATION INSTITUTE 1993 FIRE DAMAGE FROM LOCAL ESTIMATES 9311090165 931019 TECHNOLOGY IN THE LAB ROOTS OF FRAGILE X' RETARDATION STUDIED BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL LAST YEAR A MOLECULAR BIOLOGIST AND HIS YOUNG COLLEAGUES SUDDENLY REALIZED THAT THEIR OWN SOMEWHAT ESOTERIC BASIC RESEARCH MIGHT WELL HOLD THE KEY TO HOW A DEFECTIVE GENE LEADS TO MENTAL RETARDATION THEY NOW BELIEVE THAT THEY MAY BE DRIVING SCIENCE'S FIRST WEDGE INTO THE MYSTERIOUS CHEMISTRY OF HUMAN INTELLIGENCE FROM HIS TINY CUBICLE OF AN OFFICE IN THE RESEARCH BUILDING BEHIND PHILADELPHIA'S CHILDRENS HOSPITAL GIDEON DREYFUSS CAN GAZE OUT ON A NEW LABORATORY WHERE HIS BAND OF YOUNG SCIENTISTS ARE TAKING THE NEXT STEPS TOWARD DISCOVERING THE MOLECULES IN THE BRAIN THAT GIVE RISE TO INTELLIGENCE THE SPRAWLING ROOM A HALF BLOCK LONG IS BROKEN INTO A SERIES OF BAYS BY LAB BENCHES THAT ALREADY ARE CLUTTERED WITH CENTRIFUGES COMPUTER TERMINALS MACHINES THAT CAN SEPARATE PROTEINS BOTTLES OF REAGENTS MANUALS AND BOOKS WE'RE BASIC SCIENTISTS HERE SAYS DR DREYFUSS AND WE ALWAYS HOPE THAT ONE DAY WHAT WE DO WILL HAVE AN IMPACT ON THE HUMAN CONDITION THAT HE SAYS IS WHY THE LINKING OF HIS RESEARCH WITH A HUMAN AFFLICTION LIKE THE FRAGILE X SYNDROME IS INCREDIBLY EXCITING THE SYNDROME IS A GENETIC DEFECT THAT SEEMS TO AFFECT ONLY INTELLIGENCE MALES WITH THE FRAGILE X SYNDROME HAVE A LOW IQ BUT THEY DON'T HAVE THE OVERT PHYSICAL DEFORMITIES SEEN WHEN BRAIN DAMAGE RESULTS FROM A GROSS DEFECT THAT AFFECTS ORGANS THROUGHOUT THE BODY THE SYNDROME IS SO NAMED BECAUSE THE GENETIC DEFECT LIES ON THE X CHROMOSOME AND CAUSES A PIECE OF THE CHROMOSOME TO BREAK OFF AS WITH ALL DEFECTS ON THE X CHROMOSOME THE SYNDROME IS MOST PRONOUNCED IN MEN BECAUSE THEY INHERIT ONLY ONE COPY OF THE X CHROMOSOME USUALLY WOMEN AREN'T AFFECTED AS SEVERELY BY A DAMAGED X CHROMOSOME SINCE THEY HAVE TWO X CHROMOSOMES AND CAN RELY ON THE NORMAL COPY TO OBVIATE ANY CONSEQUENCES OF THE DEFECTIVE COPY BUT A DEFECTIVE X CHROMOSOME CAN SOMETIMES PRODUCE MILD EFFECTS IN WOMEN AND A MINORITY OF FEMALES WHO INHERIT THE FRAGILE X CHROMOSOME ARE MILDLY RETARDED IN 1991 THE DISCOVERY OF THE DAMAGED GENE THAT CAUSES THE SYNDROME MADE NEWS WHEN THE GENE WAS PLUCKED OUT OF THE X CHROMOSOMES OF RETARDED BOYS IN 1991 BY A TEAM OF AMERICAN AUSTRALIAN AND DUTCH SCIENTISTS THE CELEBRATION WAS TEMPERED BY THE NEXT PROBLEM THEY HAD TO SOLVE AS WITH ALL GENES THE FRAGILE X GENE IS A BLUEPRINT FOR A PROTEIN BUT THERE WASN'T A CLUE TO WHAT THE FMR1 PROTEIN AS IT WAS DUBBED DOES IN THE BRAIN ALTHOUGH IT PRESUMABLY MUST BE NECESSARY FOR THE DEVELOPMENT OF INTELLIGENCE ENTER DR DREYFUSS IN 1991 HE HAD LITTLE MORE THAN PASSING INTEREST IN THE FRAGILE X SYNDROME THE PREVIOUS YEAR WHEN HE WAS 42 YEARS OLD AND A PROFESSOR AT NORTHWESTERN UNIVERSITY DR DREYFUSS HAD BEEN NAMED A FULLTIME INVESTIGATOR OF THE GIANT HOWARD HUGHES MEDICAL INSTITUTE WHEN THE FRAGILE X GENE WAS FOUND HE HAD JUST FINISHED MOVING HIS LABORATORY TO THE CAMPUS OF THE UNIVERSITY OF PENNSYLVANIA MEDICAL SCHOOL IN PHILADELPHIA IT WASN'T DNA BUT A SECOND LESS FAMOUS STRING OF BEADLIKE MOLECULES CALLED RNA THAT INTRIGUED HIM RNA IS THE CELL'S WORKHORSE IT COPIES THE GENETIC MESSAGE OFF DNA AND TAKES IT OUT TO THE INDUSTRIAL REGIONS OF THE CELL WHERE THE MESSAGE DICTATES THE ASSEMBLY OF A PROTEIN ONE OF THE MYSTERIES OF THIS MESSENGER RNA IS THAT IT MUST BE CUT EDITED SPLICED AND CONVOLUTED BEFORE IT CAN INSTRUCT THE CELL'S FACTORIES TO MAKE THE PROTEIN MANY OF THESE MANEUVERS ARE THOUGHT TO BE CARRIED OUT BY SPECIAL PROTEINS THAT BIND THEMSELVES TO VARIOUS SPOTS ON THE MESSENGER RNA DR DREYFUSS'S DREAM WAS AND IS TO DISCOVER HOW THESE RNABINDING PROTEINS WORK BY 1991 HE AND THE YOUNG SCIENTISTS WORKING IN HIS LAB HAD MADE SOME REMARKABLE HEADWAY CERTAIN COMBINATIONS OF MOLECULES THEY FOUND SEEMED TO BE COMMON TO MANY OF THE PROTEINS THESE SHARED COMBINATIONS ARE THOUGHT TO BE SPOTS WHERE THE PROTEINS ATTACH THEMSELVES TO THE MESSENGER RNA BORROWING A TERM FROM THE ART WORLD FOR A RECURRING THEME THESE SHARED MOLECULAR COMBINATIONS ARE CALLED RNABINDING MOTIFS THEN THE DESCRIPTIONS OF THE NEWFOUND FRAGILE X GENE AND ITS PROTEIN APPEARED IN SCIENTIFIC JOURNALS TO THE SURPRISE OF THE PHILADELPHIA RESEARCHERS THE PROTEIN APPEARED TO CONTAIN TWO RNABINDING MOTIFS THE PROTEIN MADE BY THE FMR1 GENE MUST BE IMPORTANT THEY THOUGHT DURING THE CUTTING EDITING SPLICING AND CONVOLUTION OF THE RNA AFTER IT HAS COPIED THE DNA MESSAGE BUT POSSIBLY BEFORE IT LEAVES THE NUCLEUS OF THE CELL ON THE WAY TOWARD ITS FACTORIES DR DREYFUSS TEAMED UP WITH A NEIGHBOR HUGHES INSTITUTE MOLECULAR GENETICIST ROBERT L NUSSBAUM WHO WAS DEEP INTO THE STUDY OF THE FRAGILE X GENE EARLIER THIS YEAR THE TWO SENIOR SCIENTISTS ALONG WITH MIKIKO C SIOMI AND HER HUSBAND AND FELLOW SCIENTIST HARUHIKO SIOMI REPORTED THAT THE FMR1 PROTEIN OF MENTALLY NORMAL PEOPLE DOES IN FACT BIND TO RNA AND THAT MANY FRAGILE X PATIENTS EITHER FAIL TO MAKE THE PROTEIN OR MAKE AN INEFFECTIVE MUTANT VERSION OF IT ONE IMMEDIATE GOAL IS TO SORT THROUGH THE THOUSANDS OF RNAS THAT BRAIN CELLS MAKE DURING THEIR MINUTEBYMINUTE CHEMICAL OPERATIONS AND FIND THE PARTICULAR RNA THAT THE FMR1 PROTEIN BINDS TO SUCH RESEARCH IS HARDLY GLAMOROUS WHEN AN INTERESTING RNA IS FOUND FOR EXAMPLE IT MUST BE COPIED BACK INTO DNA THE DNA IS THEN CUT INTO FRAGMENTS AND THE FRAGMENTS PLACED ON A JELLYFILLED TRAY AN ELECTRIC CURRENT CAUSES EACH FRAGMENT TO BREAK UP INTO ITS CONSTITUENT MOLECULAR BEADS A RADIOACTIVE TRACER ON EACH BEAD PRODUCES A SMUDGE ON A PIECE OF PHOTOGRAPHIC FILM THAT IS LEFT LYING ON THE JELLY OVERNIGHT ONE OF THE YOUNG POSTDOCTORAL SCIENTISTS THEN MUST SIT DOWN AT A DESK AND TEDIOUSLY TOUCH A LIGHT PEN TO EACH OF THE HUNDREDS OF BLACK SMUDGES THAT LITTER THE PHOTOGRAPHIC FILM THE PEN TELLS A COMPUTER THE RELATIVE POSITIONS OF THE SMUDGES INFORMATION THE COMPUTER USES TO IDENTIFY THE SEQUENCE OF THE MOLECULAR BEADS THAT MADE UP THE DNA AND CONSEQUENTLY THE MOLECULAR SEQUENCE OF THE ORIGINAL RNA SEE RELATED LETTER LETTERS TO THE EDITOR GET SMART WSJ NOV 9 1993 9310190120 YY93 MM11 9311090155 931014 MARKETING & MEDIA MARKETSCAN MORE RELAXED DIETS NEW BRANDS HELP US SEE EGGS' SUNNY SIDE BY KATHLEEN DEVENY THE LONGMALIGNED EGG APPEARS TO BE MAKING A COMEBACK THANKS TO AMERICANS' FADING INTEREST IN HEALTHFUL EATING AND A BEVY OF PREMIUM EGGS INCLUDING EGGS LAID BY FREERANGE CHICKENS EGG SALES ARE INCREASING FOR THE FIRST TIME IN YEARS SUPERMARKET SALES OF FRESH EGGS JUMPED 15 TO 3532 MILLION DURING THE 12 WEEKS ENDED JULY 18 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE UNIT SALES MEASURED IN INDIVIDUAL EGGS ALSO EDGED UP BRANDED EGGS WHICH ARE ADVERTISED OR PROMOTED MADE EVEN BIGGER GAINS INFORMATION RESOURCES REPORTS DOLLAR SALES OF BRANDED EGGS ROSE 40 DURING THE PERIOD WHILE UNIT SALES INCREASED 19 WE'RE SEEING CONSUMER ATTITUDES SHIFT SAYS LOUIS B RAFFEL PRESIDENT OF THE AMERICAN EGG BOARD A TRADE ASSOCIATION FOR PRODUCERS CONSUMERS ARE BEGINNING TO BE LESS FRIGHTENED OF FOOD IN GENERAL AND MORE CONFUSED ABOUT WHAT IS GOOD FOR THEM MARKET RESEARCHERS SAY CONSUMERS' GROWING APPETITE FOR EGGSOVEREASY REPRESENTS A SIGNIFICANT SHIFT IN BEHAVIOR MANY AMERICANS TURNED AWAY FROM SUCH HIGHFAT OR HIGHCHOLESTEROL FARE AS EGGS BEEF AND BACON DURING THE 1980S BUT IN THE PAST FEW YEARS CONSUMERS' WILLPOWER HAS BEEN WEAKENING LAST YEAR PEOPLE TOOK HOME A RECORD AMOUNT OF BACON FOR EXAMPLE AND STEAKHOUSES ARE ONE OF THE FEW BRIGHT SPOTS IN THE RESTAURANT INDUSTRY TODAY ALTHOUGH MANY EGGS ARE USED AS INGREDIENTS IN OTHER DISHES THEY REMAIN THE NATION'S THIRD MOST POPULAR BREAKFAST FOOD AFTER CEREAL AND BREAD PER CAPITA CONSUMPTION DECLINED STEADILY FROM AN AVERAGE OF 53 EGGS IN A TWOWEEK PERIOD IN THE EARLY 1980S TO 33 EGGS IN 1989 ACCORDING TO HARRY BALZER VICE PRESIDENT OF NPD GROUP A CHICAGO FIRM THAT TRACKS AMERICANS' EATING HABITS SINCE THEN HOWEVER EGG CONSUMPTION HAS BOTTOMED OUT AND APPEARS TO BE INCHING UPWARD EGG MARKETERS SAY THAT IS PARTLY BECAUSE CHOLESTEROL ISN'T AS HIGH ON PEOPLE'S LIST OF HEALTH CONCERNS AS IT WAS A FEW YEARS AGO THE EGG'S REBOUND MAY ALSO REFLECT PEOPLE'S CONFUSION ABOUT EXACTLY WHAT CONSTITUTES HEALTHFUL EATING ADMONISHED FOR YEARS TO CUT BACK ON ANIMAL FATS PEOPLE BY THE MILLIONS SWITCHED FROM BUTTER TO MARGARINE NOW HOWEVER SOME STUDIES HAVE SHOWN THAT VEGETABLE SHORTENINGS MAY ALSO RAISE THE RISK OF CARDIOVASCULAR DISEASE EVEN THE AMERICAN HEART ASSOCIATION INCREASED ITS SUGGESTED MAXIMUM CONSUMPTION OF WHOLE EGGS TO FOUR A WEEK FROM THREE AFTER NEW MEASUREMENTS SHOWED THE CHOLESTEROL CONTAINED IN EACH YOLK WAS LOWER THAN BELIEVED ONE LARGE WHOLE EGG CONTAINS 213 MILLIGRAMS TO 220 MILLIGRAMS OF CHOLESTEROL ACCORDING TO THE ASSOCIATION THAT IS CONSIDERABLY LOWER THAN PREVIOUS ESTIMATES OF 274 MILLIGRAMS BUT OLDFASHIONED MARKETING MAY BE BEHIND SOME OF THE GAINS IN EGG SALES SHOPPERS NOWADAYS HAVE MORE CHOICES THAN EVER IN THE DAIRY CASE CALMAINE FOODS INC HAS BEEN MARKETING THE EGGLAND'S BEST BRAND IN SOUTHERN STATES SINCE LAST YEAR THE EGGS ARE LAID BY CHICKENS THAT EAT A DIET THAT CONTAINS KELP AND IS HIGH IN VITAMIN E ACCORDING TO KEN LOOPER PRESIDENT OF CALMAINE EGGLAND IS EXPECTED TO SPEND 10 MILLION TO 12 MILLION ON TELEVISION AND PRINT ADVERTISING TO AVOID RUNNING AFOUL OF THE FOOD AND DRUG ADMINISTRATION THE COMPANY IS CAREFUL TO AVOID MAKING HEALTH CLAIMS PEOPLE LOVE EGGS AND THEY'RE JUST LOOKING FOR PERMISSION TO EAT THEM MR LOOPER SAYS ADVERTISING FOR BRANDED EGGS IS BRINGING PEOPLE BACK INTO THE MARKET WHO HAVEN'T BEEN EATING EGGS THAT'S ALSO BEEN THE CASE FOR GOOD NEWS EGGS WHICH ARE MARKETED BY A CONSORTIUM OF FOUR EGG PRODUCERS IN MICHIGAN GOOD NEWS EGGS WHICH LOOK JUST LIKE THEIR MORE HUMBLE COUSINS BOAST HIGHER LEVELS OF OMEGA 3 A FATTY ACID THAT HAS BEEN ASSOCIATED WITH LOWER CHOLESTEROL LEVELS AND REDUCED RISKS OF HEART DISEASE IT'S A NICHE MARKET SAYS JEFFREY STROBURG PRESIDENT OF THE HAMILTON FARM BUREAU COOPERATIVE ONE OF THE EGG PRODUCERS BEHIND GOOD NEWS EGGS HAMILTON ALSO MARKETS AUNT IDA'S FREE RANGE EGGS WHICH ARE LAID BY CHICKENS THAT WALK AROUND AND AREN'T COOPED UP IN TINY CAGES TREATMENT THAT MAKES SOME CONSUMERS FEEL BETTER ABOUT THE PRODUCT CONSUMERS ARE LOOKING FOR FOODS THAT ARE A LITTLE BIT BETTER THAN WHAT THEY'RE USED TO MR STROBURG SAYS MARKETING EXPERTS SAY THE PREMIUM PRODUCTS WHICH COST 50 TO 100 MORE THAN REGULAR EGGS COULD BE A FAD BUT THE AMERICAN EGG BOARD IS SCRAMBLING TO KEEP DEMAND FOR ALL EGGS GROWING THIS MONTH THE BOARD KICKED OFF A 6 MILLION ADVERTISING CAMPAIGN THAT USES NOSTALGIC IMAGES OF DAYS PAST WHEN EATING EGGS WAS PERFECTLY ACCEPTABLE CREATED BY GREY ADVERTISING INC OF NEW YORK THE SPOTS ALSO POINT OUT THAT EGGS HAVE 22 LESS CHOLESTEROL THAN PREVIOUSLY THOUGHT MOST PEOPLE ARE DYING TO EAT EGGS SAYS STEVE NOVICK CHIEF CREATIVE OFFICER AT GREY WE'RE SAYING WITHIN MODERATION IT IS OK TO EAT THEM SEE RELATED LETTER LETTERS TO THE EDITOR CLUCK WSJ NOV9 1993 9310140087 YY93 MM11 9311090147 931006 INTERNATIONAL LEHMAN BROTHERS TO ADVISE HANOI IN AIRPORT FACELIFT BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL FOLLOWING IN THE TRACKS OF BIG OIL AND COCACOLA CO WALL STREET IS SEEING THE POTENTIAL IN VIETNAM IN THE FIRST TRANSACTION OF ITS KIND LEHMAN BROTHERS INC HAS QUIETLY SIGNED A MEMORANDUM OF UNDERSTANDING TO ACT AS A FINANCIAL ADVISER TO VIETNAM'S CIVIL AVIATION AUTHORITY THE FIRM WOULD RAISE 150 MILLION TO 200 MILLION TO FINANCE THE RENOVATION OF HANOI'S AIRPORT THERE ARE HUGE NEEDS IN VIETNAM SAID WILLIAM BARDEL MANAGING DIRECTOR OF LEHMAN BROTHERS' GOVERNMENT ADVISORY UNIT IN LONDON AND WE ARE FOLLOWING THEM VERY CLOSELY LIKE ALL TRANSACTIONS INVOLVING US COMPANIES IN VIETNAM THE AGREEMENT IS CONTINGENT ON THE US LIFTING AN EMBARGO THAT HAS BEEN IN PLACE AGAINST VIETNAM SINCE 1975 SOME POLITICIANS AND VETERANS' GROUPS IN THE US OPPOSE REMOVING THE EMBARGO UNTIL 1600 US SERVICEMEN STILL MISSING FROM THE WAR ARE ACCOUNTED FOR THE RESTRICTIONS WERE RELAXED BY THE BUSH AND CLINTON ADMINISTRATIONS US COMPANIES CAN NOW SIGN CONDITIONAL MEMORANDUMS OF UNDERSTANDING AND BID CONDITIONALLY ON DEVELOPMENT PROJECTS ANXIOUS TO CASH IN ON A FASTREFORMING COUNTRY WITH A POPULATION OF 70 MILLION SEVERAL US OIL AND CONSUMER PRODUCTS COMPANIES INCLUDING THE REGIONAL ARM OF COCACOLA CO ALREADY HAVE SIGNED CONDITIONAL AGREEMENTS TO DO BUSINESS IN VIETNAM WHEN THE RESTRICTIONS ARE REMOVED LAST YEAR VIETNAM'S ECONOMY GREW 83 AND ECONOMISTS EXPECT IT TO GROW 75 OR BETTER THIS YEAR WE'RE HOPING THEY'LL LIFT THE FULL EMBARGO LATER THIS YEAR SAID EUGENE MATTHEWS A HANOI CONSULTANT WHOSE FIRM ASHTA INTERNATIONAL INC WORKED TOGETHER WITH LEHMAN BROTHERS LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS CO IS THE FIRST FINANCIAL FIRM TO OFFER CONDITIONALLY TO RAISE FUNDS FOR VIETNAM MR MATTHEWS SAID THE AGREEMENT CALLS FOR LEHMAN BROTHERS TO HELP STRUCTURE A FINANCING PACKAGE AND THEN HELP RAISE THE MONEY PROBABLY FROM MULTILATERAL AGENCIES AND SOME COMMERCIAL SOURCES HE SAID HE BELIEVES VIETNAM WILL NEED HELP SOON WITH OTHER FINANCING PROJECTS INVOLVING ITS OIL AND GAS INDUSTRY AS WELL AS AIRCRAFT PURCHASING SEE RELATED LETTER LETTERS TO THE EDITOR WARY OF VIETNAM WSJ NOV 9 1993 9310060171 YY93 MM11 9311090138 931007 LETTERS TO THE EDITOR LET'S SHRED THE MOUNTAINS OF OLD TIRES THERE ARE SEVERAL IMPORTANT CONSIDERATIONS THAT YOU FAILED TO MENTION IN YOUR SEPT 7 EDITORIAL ASPHALT BUNGLE ON THE USE OF SHREDDED TIRES IN ASPHALT FOR HIGHWAYS FIRST THE NATION HAS ACCUMULATED NEARLY THREE BILLION SCRAP TIRES THERE IS A SIZABLE TIRE PILE NEAR SMITHFIELD THAT CONCERNS RHODE ISLANDERS ESPECIALLY BUT IT IS JUST ONE OF HUNDREDS THAT ARE PLAGUING COMMUNITIES ALL ACROSS THE COUNTRY THE RADIAL TIRE DESIGN AND LOW IMPORT PRICES HAVE FORCED RETREADING AND OTHER FORMS OF TIRE REUSE OUT OF THE MARKETPLACE AS A RESULT OLD TIRES ARE NOW BEING ADDED TO THE PILES AT THE RATE OF 200 MILLION PER YEAR SECOND THESE TIRE PILES PRESENT SIGNIFICANT ENVIRONMENTAL PROBLEMS THEY ARE BREEDING GROUNDS FOR DISEASECARRYING MOSQUITOES AND RATS WHEN THEY CATCH FIRE AS SEVERAL DOZEN DO EACH YEAR THEY RELEASE TOXIC MATERIALS TO AIR AND WATER AND MAY TAKE MONTHS TO CLEAN UP THIRD RECYCLING THESE TIRES INTO ASPHALT IS THE ONLY POTENTIAL MARKET THAT IS LARGE ENOUGH TO MAKE A DENT IN THE PROBLEM AS YOU NOTED IN YOUR EDITORIAL HIGHWAY DEPARTMENTS HAVE BEEN EXPERIMENTING WITH RECYCLED TIRE RUBBER AS A BINDER FOR MORE THAN 20 YEARS AND WITH GREAT SUCCESS IN TEST AFTER TEST ROADS BUILT WITH RUBBERIZED ASPHALT HAVE PERFORMED BETTER THAN THOSE BUILT WITH CONVENTIONAL PAVEMENT IT IS TRUE THAT ASPHALT CONTAINING SHREDDED TIRE MATERIAL COSTS MORE THAN CONVENTIONAL ASPHALT IT IS THE COST TO SHRED THE TIRE THAT MAKES UP MOST OF THE DIFFERENCE BUT THE COST OF SHREDDING OLD TIRES MUST BE PAID BY SOMEONE IF WE ARE EVER TO RID OURSELVES OF THIS GROWING PROBLEM WHOLE TIRES CANNOT BE DISPOSED IN CITY AND COUNTY LANDFILLS UNLESS THEY ARE SHREDDED BEFORE DISPOSAL THEY FLOAT TO THE SURFACE DESTROYING THE COVER THAT KEEPS RAIN AND RODENTS OUT YOUR EDITORIAL CHARACTERIZES THE TIRE RECYCLING REQUIREMENT AS A MANDATE IMPOSED BY THE CONGRESS ON THE STATES IF THESE WERE STATE ROADS YOU MIGHT HAVE A CASE BUT FEDERAL DOLLARS ARE PAYING FOR 85 OF THE COST OF THESE HIGHWAY PROJECTS THAT ARE SUBJECT TO THE RECYCLING REQUIREMENT IN EFFECT THE FEDERAL GOVERNMENT IS BUYING ASPHALT JUST LIKE IT BUYS PAPER OR MOTOR OIL OR OTHER GOODS AS A MAJOR BUYER IN THE MARKETPLACE THE FEDERAL GOVERNMENT OUGHT TO SEEK THE BEST DEAL FOR ITS DOLLAR AND BUYING RECYCLED GOODS ESPECIALLY WHERE BETTER PERFORMANCE JUSTIFIES THE COST IS THE KIND OF LEADERSHIP THE FEDERAL GOVERNMENT SHOULD PROVIDE MORE OFTEN SOMEBODY EVENTUALLY WILL HAVE TO PAY TO SHRED THE TIRES THAT ARE NOW PILING UP ACROSS THE COUNTRY ONE SOLUTION WOULD BE TO IMPOSE A TAX ON NEW TIRE SALES USE THE REVENUE TO SHRED DISCARDED TIRES AND THEN THROW THE SHREDDED MATERIAL AWAY THAT APPROACH IS SUPPORTED BY THE TIRE MANUFACTURERS AND WE MAY HAVE TO DO SOME OF THAT TO RID OURSELVES OF THREE BILLION TIRES BUT THERE MAY BE A MORE INTELLIGENT SOLUTION TWENTY YEARS OF TESTING HIGHWAY MATERIALS INDICATES THAT WE CAN RECOUP SOME OF THE COST OF SHREDDING OLD TIRES BY REUSING THE MATERIAL IN THE ASPHALT PAVEMENT THE IMPROVED PERFORMANCE OF THE ROADS WE BUILD MAY MORE THAN OFFSET THE SHREDDING COSTS WE MUST BEAR ANYWAY ROADS THAT LAST LONGER WON'T MAKE THE CONVENTIONAL PAVEMENT LOBBY HAPPY BUT IT SHOULD BE GOOD NEWS FOR AMERICAN TAXPAYERS SEE RELATED LETTER LETTERS TO THE EDITOR RETREADING INDUSTRY ROLLING RIGHT ALONG WSJ NOV 9 1993 9310070051 YY93 MM11 9311090132 931004 WANT A GUN BECOME A GUN DEALER BY JOSH SUGARMAN SEN BILL BRADLEY'S STATEMENT THURSDAY THAT CONGRESS SHOULD RAISE THE LICENSING FEE ON GUN DEALERS TO 2500 FROM 30 HIGHLIGHTED ONE OF THE MOST OVERLOOKED ASPECTS OF THE NATIONAL DEBATE ON FIREARMS THE EASE WITH WHICH NEARLY ANY AMERICAN OVER THE AGE OF 21 CAN BECOME A FEDERALLY LICENSED GUN DEALER MR BRADLEY'S STATEMENT FOLLOWS THE RECENT SIGNING OF AN EXECUTIVE ORDER BY PRESIDENT CLINTON DIRECTING THE FEDERAL BUREAU OF ALCOHOL TOBACCO AND FIREARMS TO BEGIN RESTRICTING FEDERAL FIREARMS LICENSES FFLS TO BONA FIDE GUN DEALERS THIS SENSIBLE STEP WILL HELP STEM THE FLOW OF GUNS TO AMERICA'S CRIMINALS A MOVE THAT CONSERVATIVES WHO REPEATEDLY EMPHASIZE THE RIGHTS WITH RESPONSIBILITIES ETHIC SHOULD APPLAUD THE TYPE 1 FFL IS THE BASIC FEDERAL LICENSE REQUIRED TO SELL GUNS IN AMERICA AND GRANTS THE LICENSEE UNIQUE AND BROAD PRIVILEGES AMERICA'S 246532 TYPE 1 FFL HOLDERS CAN SHIP AND RECEIVE FIREARMS AND AMMUNITION IN INTERSTATE COMMERCE VIA COMMON CARRIER AND PURCHASE WEAPONS AT WHOLESALE PRICES MOST ACTIVITY CAN BE CONDUCTED FREE OF LOCAL AND STATE REGULATIONS THAT APPLY TO INDIVIDUAL OVERTHECOUNTER PURCHASES SUCH AS WAITING PERIODS OR BACKGROUND CHECKS ONE WOULD ASSUME THAT TO BECOME A FEDERALLY LICENSED FIREARMS DEALER A RIGOROUS SET OF REGULATIONS WOULD BE IN PLACE TO KEEP UNDESIRABLES OUT OF THE BUSINESS BUT THE REALITY IS THAT ANY AMERICAN OVER THE AGE OF 21 CAN BECOME A GUN DEALER UPON PAYING A 30 THREEYEAR LICENSING FEE AND UNDERGOING A LOOPHOLERIDDEN BACKGROUND CHECK FOR POSSIBLE FELONY CONVICTIONS BECAUSE OF THE CURSORY NATURE OF THE APPLICATION CHECK THOSE WITH FELONY RECORDS CAN AVOID DETECTION MERELY BY HAVING RELATIVES GIRLFRIENDS OR EVEN PETS REGISTER FOR THEM IN 1990 ATF OFFICIALS WERE EMBARRASSED WHEN IT WAS REVEALED THAT THEY HAD APPROVED A LICENSE APPLICATION FOR TWO DOGS THE POINT IS WELL TAKEN A ATF SPOKESMAN ACKNOWLEDGED THE DOGS WOULD CLEARLY PASS A RECORD CHECK DESIGNED FOR HUMAN BEINGS THE RESULT OF THESE INCREDIBLY LAX PROCEDURES IS THAT IN MANY STATES IT IS EASIER TO BECOME A DEALER IN FIREARMS THAN TO PURCHASE A HANDGUN LEGALLY IT'S NOT SURPRISING THAT FROM 1975 TO 1993 THE NUMBER OF TYPE 1 FFLS JUMPED MORE THAN 68 THE LICENSING PROCEDURE IS SO LENIENT THAT TODAY THE US HAS MORE GUN DEALERS THAN IT DOES GAS STATIONS YET ACCORDING TO A JULY ATF REPORT ONLY 18 OF THE HOLDERS OF TYPE 1 FFLS OPERATE ACTUAL STOREFRONT BUSINESSES SUCH AS GUN OR SPORTING GOODS STORES THE VAST MAJORITY 74 ARE KITCHENTABLE DEALERS WHO CONDUCT BUSINESS OUT OF THEIR HOMES OFTEN IN VIOLATION OF STATE AND LOCAL ZONING BUSINESS OR FIREARMS LAWS THE REMAINDER CONDUCT BUSINESS OUT OF COMMERCIAL PREMISES NOT ASSOCIATED WITH THE SALE OF GOODS TO THE PUBLIC EG REAL ESTATE OFFICES AUTO REPAIR SHOPS OR BEAUTY SHOPS WHILE MOST OF THE ATF'S REGULATORY LETHARGY AS REGARDS FFL ISSUANCE RENEWAL AND REVOCATION HAS BEEN SELFIMPOSED IN 1986 CONGRESS PLACED MAJOR ROADBLOCKS IN THE AGENCY'S WAY WHEN IT PASSED THE FIREARMS OWNERS' PROTECTION ACT THE LAW HELPED CURTAIL FFL ENFORCEMENT BY LIMITING ATF TO ONE UNANNOUNCED DEALER INSPECTION PER YEAR REDUCING THE RECORDKEEPING REQUIREMENTS FOR DEALERS SELLING GUNS FROM THEIR PERSONAL COLLECTIONS REMOVING RECORDKEEPING REQUIREMENTS FOR AMMUNITION DEALERS PROHIBITING ATF FROM CENTRALIZING OR COMPUTERIZING DEALERS' RECORDS AND IMPOSING A HIGHER STANDARD OF PROOF VIOLATIONS NEED TO BE KNOWING OR WILLFUL WHILE LESSENING PENALTIES FOR DEALER VIOLATIONS MOREOVER LESS THAN 6 OF ALL FFL HOLDERS ARE INSPECTED IN AN AVERAGE YEAR IN 1990 THE AGENCY REVOKED ONLY THREE OF THE 235700 TYPE 1 FFLS THEN HELD THE ATF ESTIMATES THAT AT CURRENT FUNDING LEVELS IT WOULD TAKE THE AGENCY MORE THAN A DECADE TO INSPECT EVERY FFL HOLDER FOR THE FIRST TIME HOWEVER THE ATF RECENTLY BEGAN VISITING OR CALLING ALL NEW APPLICANTS TWO CASES CITED BY FORMER ATF DIRECTOR STEPHEN HIGGINS IN JUNE TESTIMONY BEFORE THE HOUSE SUBCOMMITTEE ON CRIME ILLUSTRATE THE NEED FOR INCREASED OVERSIGHT THE FIRST CASE CONCERNED A NEW JERSEY MAN WHOSE STATED PLACE OF BUSINESS WAS A ROOM AT THE YMCA THE APPLICANT HAD SEVERAL GUNS IN THE ROOM AND WAS RELOADING AMMUNITION WHILE TALKING TO THE INSPECTOR THE APPLICANT MR HIGGINS TESTIFIED WAS ALSO WATCHING MOVIES ABOUT THE VIETNAM WAR AND APPEARED TO BE IRRATIONALLY ENTHRALLED WITH THAT CONFLICT IN A SECOND CASE AFTER A PRELIMINARY INSPECTION THE PROSPECTIVE GUN DEALER WITHDREW HIS APPLICATION ONE WEEK LATER MR HIGGINS CONTINUED THE APPLICANT WAS ARRESTED FOR POSSESSING MACHINE GUNS HE WAS SUBSEQUENTLY RELEASED ONLY TO LATER ENGAGE IN A SHOOTOUT WITH LOCAL POLICE THE BUREAU HAS ALSO IMPROVED ITS INSPECTION PROCESS BY VISITING THE HOLDERS OF FFLS IN SELECT URBAN AREAS PRIOR TO RENEWAL IN AN ATTEMPT TO CONFIRM THAT THEY HAVE MET ALL STATE AND LOCAL LICENSING REQUIREMENTS THOSE WHO HAVE NOT MET THE REQUIREMENTS ARE INFORMED THAT THEIR LICENSES WILL MOST LIKELY NOT BE RENEWED YET AN UNKNOWN NUMBER OF FFLS REMAIN IN CRIMINAL HANDS LICENSEE ABUSES CITED AT THE JUNE HOUSE HEARING INCLUDED THOSE OF DETROIT KITCHENTABLE DEALER LARRY WILSON WHO SOLD 2169 HANDGUNS AND ASSAULT RIFLES OFF THE BOOKS TO CRIMINALS NEW YORK CITY RESIDENT JOHN ADAMS WHO ORDERED MORE THAN 1000 HANDGUNS THROUGH THE MAIL AND THEN SOLD THEM ON THE CITY'S BLACK MARKET AND FELLOW NEW YORKER JOHN ZODDA WHO OVER A FIVEYEAR PERIOD USED HIS OWN FFL AND A SERIES OF FALSIFIED LICENSES TO BUY AND SELL MORE THAN 2400 FIREARMS INCLUDING ASSAULT WEAPONS THESE ARE NOT ISOLATED CASES A 1992 STUDY BY THE VIOLENCE POLICY CENTER FOUND THAT KITCHENTABLE DEALERS CONTRIBUTE SIGNIFICANTLY TO CRIMINAL GUN FLOW IN AN ANALYSIS OF ATF CRIMEGUN TRACES FOR DETROIT THE STUDY FOUND THAT ONETHIRD OF ALL DEALERS WHO HAD FIVE OR MORE GUNS USED IN CRIMES TRACED BACK TO THEM WERE KITCHENTABLE DEALERS THE AVERAGE NUMBER OF CRIME GUNS TRACED PER KITCHENTABLE DEALER WAS NEARLY 50 HIGHER THAN THAT OF GUN SHOP OWNERS AND SIX OF THE TOP 10 DEALERS WITH FIVE OR MORE CRIMINAL GUN TRACES WERE KITCHENTABLE DEALERS THESE STATISTICS ILLUSTRATE THE FOLLY OF THE FEDERAL GOVERNMENT'S PERMISSIVE FIREARMS LICENSING PROCEDURES EVEN OPPONENTS OF GUN CONTROL SHOULD BE IN FAVOR OF MEASURES THAT WOULD LIMIT GUNDEALING LICENSES TO LEGITIMATE GUN DEALERS AS A RESULT OF PRESIDENT CLINTON'S DIRECTIVE ADDITIONAL STEPS TO BE UNDERTAKEN BY ATF INCLUDE THE DEVELOPMENT OF A MORE COMPREHENSIVE APPLICATION FORM FINGERPRINTING APPLICANTS AND AUTOMATING THE BUREAU'S DEALER RECORDS THE PROBLEM CANNOT BE SOLVED HOWEVER UNTIL CONGRESS MOVES TO LIMIT LICENSE AVAILABILITY TO LEGITIMATE STOREFRONT OPERATIONS BY AT THE VERY LEAST INCREASING THE ANNUAL DEALER LICENSING FEE AND REQUIRING THAT BEFORE A FEDERAL LICENSE IS GRANTED APPLICANTS SHOW PROOF OF HAVING OBTAINED ALL NECESSARY LOCAL AND STATE PERMITS THE RECENT RESIGNATION OF MR HIGGINS FROM THE ATF HIGHLIGHTS THE NEED FOR A NEW DIRECTOR WHO IS COMMITTED TO IMPLEMENTING THESE REGULATIONS THESE MOVES WILL NOT MAKE IT ANY MORE DIFFICULT FOR LAWABIDING CITIZENS TO OBTAIN FIREARMS THEY WILL HOWEVER BE A BIG STEP FORWARD IN REDUCING THE NUMBER OF KITCHENTABLE DEALERS AND IN THE PROCESS LIMITING CRIMINAL ACCESS TO GUNS THAT'S AS EFFECTIVE A WEAPON AS ANY IN THE FIGHT AGAINST CRIME MR SUGARMANN IS EXECUTIVE DIRECTOR OF THE VIOLENCE POLICY CENTER IN WASHINGTON SEE RELATED LETTER LETTERS TO THE EDITOR THE ECONOMIC COSTS OF CURBING GUN DEALERS WSJ NOV 91993 9310040062 YY93 MM11 9311090022 931015 POTOMAC WATCH CRIME CHOICE SHE'S NO HANGING JUDGE BY PAUL A GIGOT PRESIDENT CLINTON HAS BEGUN TO TALK ABOUT CRIME WHICH HE PROPOSES TO CURE BY THE GREAT INNOVATION OF MAKING EVERYONE WAIT FIVE DAYS TO BUY A HANDGUN BUT SINCE HE'S BROUGHT IT UP HOW ABOUT TALKING ABOUT ROSEMARY BARKETT TOO MS BARKETT IS ONE OF MR CLINTON'S FIRST NOMINEES TO THE US COURT OF APPEALS THE JUDICIAL RUNG JUST UNDER THE SUPREMES SHE IS BY ALL ACCOUNTS BRIGHT AFFABLE AND DILIGENT WHICH IS THE PROBLEM QUIPS RAY MARKY A TALLAHASSEE PROSECUTOR BECAUSE SHE IS BY FAR THE MOST LIBERAL MEMBER OF THE FLORIDA SUPREME COURT WE'VE HAD IN THE 32 YEARS I'VE BEEN PRACTICING ESPECIALLY ON CRIME THAT MR CLINTON NOW WANTS TO PROMOTE MS BARKETT TO A LIFE TENURE JOB REVEALS A LOT ABOUT HIS CRIME AGENDA BACK IN THE 1992 CAMPAIGN MR CLINTON SAID HE'D PUT 100000 NEW COPS ON THE STREET IT WAS A BRILLIANT STROKE THAT BURNISHED HIS IMAGE AS A NEW DEMOCRAT BUT IN OFFICE THAT NUMBER HAS QUIETLY SHRUNK TO 50000 WITH MONEY FOR EVEN FEWER MEANWHILE HE'S BEGUN TO PUSH THAT OLDEST OF OLD DEMOCRAT CHESTNUTS GUN CONTROL THIS IS BY NOW A WELL WORN POLITICAL PATTERN MR CLINTON IS SHREWD ENOUGH TO ADDRESS MIDDLECLASS ANXIETIES BUT NOT BRAVE ENOUGH TO DO ANYTHING ABOUT THEM IF IT MEANS CONFRONTING THE LIBERAL WING OF HIS OWN PARTY HE'S NO JIMMY CARTER WHO CHALLENGED LIBERALS AND PAID A PRICE MR CLINTON PICKS FIGHTS ONLY WITH THE OTHER PARTY'S COALITION EG DRUG COMPANIES UTAH HONEY MAKERS ON CRIME HE'S TARGETED THE NATIONAL RIFLE ASSOCIATION WHICH TODAY REQUIRES AS MUCH COURAGE AS SAYING GET OUT OF SOMALIA YET HE NEVER MENTIONS MORE PRISON SPACE OR REFORMING THE CRIMINALJUSTICE SYSTEM PERHAPS BECAUSE BOTH IDEAS UPSET CAPITOL HILL LIBERALS WE ARE SUPPOSED TO BELIEVE THAT THE BRADY BILL AND A BAN ON UZIS HOWEVER WORTHY WILL BY THEMSELVES CREATE SAFE STREETS MAYBE MR CLINTON THINKS CRIMINALS ARE THE TYPE TO WAIT IN LINE AT THE LOCAL GUN SHOP HOW MUCH DOES GUN CONTROL EVEN MATTER WHEN FEWER THAN ONE IN 10 SERIOUS CRIMES RESULTS IN IMPRISONMENT WHICH BRINGS US BACK TO MS BARKETT HIS NOMINEE FROM FLORIDA HOME OF SUNSHINE AND HIGHWAY MAYHEM SINCE HER APPOINTMENT IN 1985 SHE HAS HELPED TURN THE FLORIDA HIGH COURT INTO ONE OF THE NATION'S MOST PROGRESSIVE ON CRIMINAL LAW MEANWHILE NEW FBI STATISTICS SHOW THAT MIAMI AND TAMPA HAVE TWO OF THE NATION'S TOP THREE URBAN CRIME RATES SANDWICHING ATLANTA WASHINGTON DC WAS 15TH WHICH MUST MEAN CONGRESS WASN'T INCLUDED TO WADE THROUGH MS BARKETT'S OPINIONS IS TO ENCOUNTER ROOT CAUSES UNCONSCIOUS DISCRIMINATION FEAR OF POLICE AND OTHER LIBERAL EXPLANATIONS FOR CRIME THIS IS ESPECIALLY TRUE IN DEATH PENALTY CASES WHICH SHE ATTEMPTS TO OVERTURN ON THE SMALLEST TECHNICALITY IN ONE CELEBRATED EXAMPLE LECROY V FLORIDA SHE VOTED TO SPARE A CHILD AGE 17 AND 10 MONTHS WHO HAD SHOT AND ROBBED A HUSBAND AND WIFE ON A CAMPING TRIP IT IS SUCH CHILDREN WHO HAVE BEEN DOING MUCH OF FLORIDA'S RECENT KILLING IN PORTER V FLORIDA SHE OPPOSED A DEATH SENTENCE BECAUSE THE KILLER WAS INVOLVED IN A LOVER'S QUARREL AND THUS LACKED PREMEDITATION THOUGH HE HAD STALKED HIS VICTIMS FOR TWO DAYS AND SO ON ONE OF HER COLLEAGUES ONCE PARODIED HER THINKING WITH THIS OPENING LINE APPELLANT IS A GOOD MAN EXCEPT THAT SOMETIMES HE KILLS PEOPLE IN ANOTHER CASE SHE BARRED A LOITERING STATUTE USED TO CURB PROSTITUTION AND HER REASONING IN ONE OBSCENITY CASE SUGGESTED THAT ALL SUCH LAWS ARE UNCONSTITUTIONAL BECAUSE THEY ARE SUBJECTIVE AND COLLIDE WITH PERSONAL VIEWS OF MORALITY THIS IS 90PROOF LIBERALISM EXTENDING RIGHTS TO SMASH A COMMUNITY'S ABILITY TO SET EVEN BASIC STANDARDS OF PUBLIC NOT PRIVATE LIFE IN A 1988 CASE SHE TOOK IT UPON HERSELF TO BAR POLICE FROM SEARCHING FOR DRUGS ABOARD BUSES A WELLKNOWN DRUG TRANSPORTATION ROUTE SHE SAID ALL SUCH SEARCHES VIOLATE THE FOURTH AMENDMENT EVEN IF POLICE SEARCH WITH AN INDIVIDUAL'S CONSENT SHE WAS OVERTURNED BY THE US SUPREME COURT 63 FLA V BOSTICK THIS PAPER TRAIL MADE MS BARKETT THE TARGET OF A RARE GRASSROOTS RETENTION CHALLENGE LAST YEAR SHE MUST APPEAR ON THE BALLOT EVERY SIX YEARS IN FLORIDA THOUGH RUNNING ALONE WITHOUT AN OPPONENT SHE WON BUT ONLY AFTER OUTSPENDING HER CRITICS FOURTOONE AND DISMISSING THEM AS RIGHTTOLIFE FANATICS WHO INCLUDED HALF THE STATE'S SHERIFFS IT'S A MYSTERY WHY A PRESIDENT WHO WANTS TO SEEM TOUGH ON CRIME WOULD NOMINATE MS BARKETT PERHAPS SHE OWES HER ELEVATION TO HER FLORIDA PAL ATTORNEY GENERAL JANET RENO WHO IS ALSO A BELIEVER IN SOCIOLOGICAL REMEDIES FOR CRIMINALS OR MAYBE SHE CAN THANK THE CLINTON CAMPAIGN DONORS IN THE PLAINTIFFS' BAR WHICH ACCORDING TO HER WHITE HOUSE BIO CREATED THE ROSEMARY BARKETT AWARD TO HONOR HER FOR MAKING FLORIDA LAWSUITFRIENDLY IN ANY EVENT HER NOMINATION GIVES REPUBLICANS A CHANCE TO EDUCATE VOTERS ABOUT MR CLINTON'S JUDICIAL STANDARDS REPUBLICANS CAN ALSO USE HER RECORD TO BROADEN THE CRIME DEBATE BEYOND GUN CONTROL AND OTHER MIRACLE CURES THEIR MAIN OBSTACLE MAY BE FLORIDA PROSECUTORS WHO JOKE THAT THEY HOPE SHE'S CONFIRMED TO THE FEDERAL BENCH SO THEY'LL BE FREE AT LAST SEE RELATED LETTER LETTERS TO THE EDITOR UNJUST CRITICISM OF A CHIEF JUSTICE WSJ NOV 9 1993 9310150053 YY93 MM11 9311080179 931108 US SELECTS RALEIGHDURHAM NC NASHVILLE TENN FOR FLIGHTS TO LONDON BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL THE TRANSPORTATION DEPARTMENT PICKED NASHVILLE TENN AND RALEIGHDURHAM NC AS NEW GATEWAYS FOR FLIGHTS TO LONDON AN ECONOMIC BOOST FOR THE TWO CITIES AS WELL AS FOR AMR CORP'S AMERICAN AIRLINES WHICH WILL FLY BOTH ROUTES THE SELECTION WHICH WON'T BECOME FINAL UNTIL AFTER OTHER PARTIES HAVE A CHANCE TO COMMENT ON IT IS A BLOW TO SALT LAKE CITY AND TO DELTA AIR LINES WHICH HAD PROPOSED ESTABLISHING ONE OF THE ROUTES AT ITS WESTERNMOST HUB THERE THE ATLANTABASED AIRLINE SAID IT WAS SHOCKED AND DISAPPOINTED BY THE DEPARTMENT'S CHOICE AND SAID IT WOULD VIGOROUSLY OPPOSE IT IN A STATEMENT DOT SAID IT CHOSE THE NASHVILLE AND RALEIGHDURHAM MARKETS BECAUSE EACH SERVES MORE PEOPLE THAN SALT LAKE CITY AND ITS CHOICE PROVIDES NONSTOP FLIGHTS TO LONDON FROM TWO OF THE FOUR LARGEST STATES THAT DON'T ALREADY FLY THERE POLITICAL FACTORS MAY HAVE PLAYED A PART HOWEVER WITH THE CHOICE OF NASHVILLE BEING A POLITICAL PLUM FOR ITS LOCATION IN THE HOME STATE OF VICE PRESIDENT AL GORE THE SELECTION OF RALEIGHDURHAM HOWEVER WAS MORE OF A SURPRISE GIVEN THAT NORTH CAROLINA ALREADY HAS FLIGHTS TO LONDON FROM USAIR GROUP INC'S CHARLOTTE HUB THE DEPARTMENT TURNED DOWN A UNIQUE BID FROM NASHVILLE TO BUY A LONDON ROUTE FOR 5 MILLION WHICH IT THEN WOULD LEASE TO AMERICAN INTERNATIONAL AIR ROUTES SHOULD BE AWARDED BASED ON PUBLIC INTEREST NOT MONEY THE DEPARTMENT SAID WE ARE NOT PREPARED TO ENDORSE AN AUCTION PROCESS THAT COULD RAPIDLY COME TO REPRESENT A WIDESPREAD MECHANISM FOR REALLOCATING THESE NATIONAL ASSETS ON THE BASIS OF THE DEEPEST CIVIC POCKET THE ORDER SAID THE CITIES AND THE AIRLINES WERE FIGHTING FOR TWO ROUTES TO LONDON BEING RELINQUISHED BY USAIR AFTER THE CLINTON ADMINISTRATION APPROVED LONDONBASED BRITISH AIRWAYS PLC'S 300 MILLION PURCHASE OF A MAJOR STAKE IN USAIR EARLIER THIS YEAR AS PART OF THAT DEAL USAIR GAVE UP ITS THREE LONDON ROUTES FROM BALTIMORE CHARLOTTE AND PHILADELPHIA BECAUSE BRITISH AIR ALREADY FLIES TO LONDON FROM THOSE CITIES ATLANTABASED DELTA SAID IT HAD PRESENTED THE DEPARTMENT WITH SUBSTANTIAL EVIDENCE THAT THE US NEEDS MORE SERVICE IN THE MOUNTAIN AND WESTERN REGIONS OF THE COUNTRY WHERE CONSUMERS HAVE DIRECT SERVICE TO LONDON ONLY FROM LOS ANGELES SAN FRANCISCO SEATTLE AND DENVER BY CONTRAST THERE ARE 13 GATEWAYS TO LONDON IN THE EASTERN HALF OF THE NATION AMERICAN AIRLINES BEFORE THIS LATEST DECISION ALREADY HAD THE AUTHORITY TO FLY TO LONDON OUT OF SEVEN OF THOSE GATEWAYS ANOTHER FACT THAT RANKLED DELTA WHICH SAID THE PROPOSED AWARDS SUBSTANTIALLY AND ADVERSELY AFFECT COMPETITION IN THE IMPORTANT USLONDON MARKET AND VIOLATES DOT'S OBJECTIVE TO CREATE GEOGRAPHIC BALANCE FOR THE LONDON ROUTES DELTA WAS THROWN A BONE OF BACKUP AUTHORITY TO SERVE LONDON FROM SALT LAKE CITY WHICH MEANS IT COULD FLY THE ROUTE IF AMERICAN DOESN'T FLY FROM NASHVILLE OR RALEIGHDURHAM FOR SOME REASON AMERICAN FLIES NONSTOP TO LONDON FROM NEW YORK CHICAGO DALLAS/FORT WORTH MIAMI LOS ANGELES AND BOSTON IN APRIL IT BEGINS FLIGHTS FROM PHILADELPHIA TO LONDON ANOTHER FORMER USAIR ROUTE AMERICAN PLANS TO INAUGURATE SERVICE TO LONDON FROM BOTH NASHVILLE AND RALEIGHDURHAM MAY 26 9311080177 931108 SWEDEN'S STORA DENIES IT STARTED PRICE WAR OVER PULP AND PAPER SPECIAL TO THE WALL STREET JOURNAL PARIS THE CHAIRMAN OF SWEDEN'S STORA AB ONE OF EUROPE'S LARGEST PULP AND PAPER COMPANIES DENIED ACCUSATIONS THAT STORA AND OTHER NORDIC PAPER PRODUCERS HAD TAKEN UNFAIR ADVANTAGE OF CURRENCY DEVALUATIONS AND HAD LAUNCHED A PRICE WAR IN EUROPE IN AN INTERVIEW PUBLISHED IN THE FRENCH NEWSPAPER LA TRIBUNE DEFOSSES LARSAAKE HELGESSON INSISTED THAT NORDIC PAPER AND PULP PRODUCERS HAVEN'T TAKEN UNDUE ADVANTAGE OF COMPETITIVE DEVALUATIONS LAST YEAR OF NORDIC CURRENCIES INCLUDING THOSE OF SWEDEN NORWAY AND FINLAND IF YOU LOOK AT STORA'S SALES FIGURES DURING THE FIRST HALF OF 1993 YOU'LL NOTICE THAT OUR SALES VOLUMES TO THE EUROPEAN COMMUNITY REMAIN UNCHANGED COMPARED TO 1992 LIKEWISE OUR MARKET SHARES HE SAID FRENCH PAPER AND PULP PRODUCERS ALONG WITH OTHERS IN THE EC HAVE ACCUSED THEIR SCANDINAVIAN COMPETITORS OF LAUNCHING A PRICE WAR AND HAVE APPLIED TO THE EC FOR SAFEGUARD MEASURES WHILE MR HELGESSON ACKNOWLEDGES THAT THE KRONA'S DEVALUATION HAS MEANT LOWER PRICES WHEN TRANSLATED INTO OTHER CURRENCIES THAT DOESN'T MEAN THAT WE HAVE LOWERED OUR PRICES IN A VOLUNTARY FASHION WE HAVE SIMPLY ADAPTED TO THE SITUATION OF THE MARKET MR HELGESSON NOTED THAT SWEDISH AND FINNISH PAPER PRODUCERS SUFFERED HEAVY LOSSES IN PAST YEARS AND NO ONE HAS MENTIONED THAT NOW THAT THE SAME THING HAS HAPPENED TO FRENCH PAPER PRODUCERS IT'S US THEY ACCUSE IT'S A BIT EASY WITH ROOTS DATING BACK TO THE 12TH CENTURY STORA AB IS ONE OF THE WORLD'S OLDEST CORPORATIONS THE GROUP HAS EXPANDED RAPIDLY IN RECENT YEARS THROUGH MAJOR ACQUISITIONS AND EXTENSIVE INVESTMENTS AND TODAY IT RANKS AS ONE OF EUROPE'S LARGEST FORESTPRODUCTS GROUP IT PRODUCES PULP NEWSPRINT PACKAGING PAPER FINE PAPER AND SAWED TIMBER 9311080176 931108 WHO'S NEWS PIKEVILLE NATIONAL CORP PIKEVILLE NATIONAL CORP PIKEVILLE KY JAMES L SPRINGER JR 51 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT OF THIS BANK HOLDING COMPANY BOTH POSTS ARE NEWLY CREATED 9311080175 931108 THERMEDICS EXPECTS TO POST STRONG RISE IN 3RDQUARTER PROFIT WOBURN MASS THERMEDICS INC EXPECTS TO REPORT THAT NET INCOME FOR THE THIRD QUARTER ENDED OCT 2 MORE THAN DOUBLED ON A 60 REVENUE INCREASE JOHN WOOD PRESIDENT AND CHIEF EXECUTIVE SAID THE MAKER OF BOMB DETECTORS AND HEART TRANSPLANT DEVICES HAS EXPANDED INTO A NEW BUSINESS USING ITS TECHNOLOGY TO CHECK QUALITY ON FASTMOVING BEVERAGE LINES AND THAT BUSINESS NOW ACCOUNTS FOR THE BULK OF ITS GROWTH MR WOOD ALSO PREDICTED THAT THERMEDICS' 54OWNED THERMO CARDIOSYSTEM INC UNIT WILL BE INVITED TO PANELREVIEW HEARINGS ON ITS HEARTASSIST DEVICE BEFORE THE FOOD AND DRUG ADMINISTRATION BY THE END OF THE YEAR THE FINAL STEP BEFORE THE PNEUMATIC PUMP COULD BE SOLD FOR USE BY DESPERATELY ILL HEART PATIENTS WAITING IN HOSPITALS FOR HEART TRANSPLANTS MR WOOD IN AN INTERVIEW SAID THERMEDICS EXPECTS TO REPORT THIRDQUARTER NET INCOME OF ABOUT 18 MILLION OR SIX CENTS A SHARE UP FROM 726000 OR THREE CENTS A SHARE A YEAR EARLIER PERSHARE FIGURES HAVE BEEN RESTATED TO REFLECT A 3FOR2 STOCK SPLIT PAID LAST MONTH AVERAGE SHARES FOR THE QUARTER ROSE TO 314 MILLION FROM 279 MILLION RESTATED FOR THE SPLIT THIRDQUARTER REVENUE ROSE TO ABOUT 217 MILLION FROM 134 MILLION HE SAID MR WOOD SAID THAT ABOUT HALF OF THE REVENUE CAME FROM ITS PRODUCTQUALITY ASSURANCE AND DETECTION BUSINESSES BOTH USE TECHNOLOGY THERMEDICS DEVELOPED FOR SNIFFING FOR BOMBS AND DRUGS BY DETECTING TRACE CHEMICALS ON PEOPLE THEIR DESKS AND CLOTHES AND LUGGAGE THERMEDICS HAS BEEN SELLING 200000 BOMB DETECTORS TO AIRPORT AUTHORITIES MOSTLY IN EUROPE AND DRUG ENFORCERS FOR SEVERAL YEARS A YEAR AGO THE COMPANY STARTED MARKETING A DEVICE THAT USES THE SAME TECHNOLOGY TO MAKE SURE THAT BEVERAGES COMING DOWN A BOTTLING LINE DON'T INCLUDE BAD BATCHES MOST FOOD AND BEVERAGE COMPANIES TEST PRODUCTS BY SAMPLING ONE OF EVERY 1000 OR 100000 UNITS THERMEDICS DEVICES CAN CHECK EVERY UNIT IMPROVING QUALITY CONTROL MR WOOD SAID HE SAID THE TECHNOLOGY COULD BE TRANSFERRED TO FOOD PRODUCTION LINES IN THE FUTURE PRODUCT QUALITY HAS OUTSTRIPPED DRUG AND EXPLOSIVE DETECTION HE SAID 9311080174 931108 CANADIAN JOBLESS RATE EASES OTTAWA CANADA'S UNEMPLOYMENT DECLINED TO 111 OF THE LABOR FORCE IN OCTOBER FROM 112 IN SEPTEMBER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE DECLINE IN THE RATE WAS DUE TO A 03 DECLINE IN THE LABOR FORCE IN OCTOBER 9311080173 931108 TRUCKERS' GROUP PLANS TO PROTEST FUELPRICE RISE ANGRY INDEPENDENT DRIVERS ORGANIZE A SHUTDOWN FOR LATER THIS WEEK BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL SOME INDEPENDENT TRUCKERS ANGRY AT FUELPRICE INCREASES THREATEN TO DISRUPT THE US FREIGHT TRANSPORT SYSTEM WITH A SHUTDOWN LATER THIS WEEK FOR THE PAST FEW WEEKS OWNEROPERATORS HAVE BEEN CIRCULATING FLYERS AT TRUCK STOPS AROUND THE COUNTRY URGING DRIVERS TO PARK THEIR RIGS FOR A WEEK BEGINNING NOV 11 BUT MAJOR TRUCK COMPANIES SAY THEY WILL KEEP OPERATING AND COULD EVEN PICK UP ADDITIONAL FREIGHT BUSINESS IF THE INDEPENDENT TRUCKERS STAY OFF THE HIGHWAYS NEVERTHELESS SOME OF THE BIG TRUCK COMPANIES ARE ALERTING THEIR DRIVERS TO THE THREATENED SHUTDOWN AND URGING THEM TO AVOID CONFRONTATIONS WITH STRIKING TRUCKERS THE INDEPENDENT TRUCKERS ARE PROTESTING HIGHER DIESELFUEL PRICES SINCE OCTOBER 1 WHEN THE FEDERAL GOVERNMENT BOOSTED FUEL TAXES BY 43 CENTS A GALLON AND MANDATED USE OF CLEANERBURNING LOW SULFUR DIESEL FUEL BY SOME ESTIMATES THESE MOVES WERE EXPECTED TO RAISE DIESELFUEL PRICES ABOUT 10 CENTS A GALLON BUT THE PRICE AT THE PUMP SOARED AS MUCH AS 40 CENTS IN SOME PARTS OF THE COUNTRY THE INDEPENDENT TRUCKERS ALSO ARE FUMING ABOUT A WIDE RANGE OF ISSUES FROM MOUNTING GOVERNMENT SAFETY REGULATION OF THEIR EQUIPMENT AND PERFORMANCE TO THE NORTH AMERICAN FREE TRADE AGREEMENT I THINK THERE WILL BE A TRUCK SHUTDOWN SAID TODD SPENCER EXECUTIVE VICE PRESIDENT OF THE OWNEROPERATORS INDEPENDENT DRIVERS ASSOCIATION OF AMERICA IN MISSOURI IT COULD BE PRETTY WIDESPREAD HE SAID THERE IS A LOT OF SUPPORT AMONG DRIVERS FOR TAKING A FEW DAYS OFF MR SPENCER SAYS HIS GROUP WHICH REPRESENTS ABOUT 20000 INDEPENDENTS IS MONITORING DRIVER SENTIMENT BUT ISN'T FORMALLY SUPPORTING THE PROPOSED SHUTDOWN INSTEAD THE PROPOSED SHUTDOWN HAS BEEN SPAWNED BY NEWLYFORMED LOOSELY ORGANIZED GROUPS WITH NAMES SUCH AS TRUCKERS ACROSS AMERICA AND QUEST FOR FREEDOM ADVOCATES HAVE SPREAD WORD OF A TRUCKER SHUTDOWN THROUGH CB RADIO CHATTER FACSIMILE MESSAGES 800NUMBERS CALLS TO THE MEDIA AND BULLETINS POSTED AT TRUCK STOPS FREIGHT SHIPPERS ARE GENERALLY SKEPTICAL OF WIDESPREAD DISRUPTION BY INDEPENDENT TRUCKERS WHICH REPRESENT ABOUT 15 OF THE NATION'S MORE THAN TWO MILLION LONGHAUL TRUCK DRIVERS AND PLAY A PARTICULARLY IMPORTANT ROLE IN THE TRANSPORT OF MEAT FRESH PRODUCE HOUSEHOLD GOODS STEEL AND MACHINERY MANY OF THE INDEPENDENT TRUCKERS ARE FINANCIALLY STRAPPED MEETING TRUCK PAYMENTS AND CAN'T STOP OPERATING FOR LONG I ASSUME SHIPPERS ARE MAKING CONTINGENCY PLANS JUST IN CASE BUT I THINK IN ALL LIKELIHOOD A NATIONWIDE TRUCK SHUTDOWN ISN'T GOING TO HAPPEN SAID ROBERT VOLTMANN DIRECTOR OF POLICY DEVELOPMENT OF THE NATIONAL INDUSTRIAL TRANSPORTATION LEAGUE WHICH REPRESENTS ABOUT 1500 SHIPPERS THERE'S A POSSIBILITY THERE WILL BE AT MOST SOME SPOT STOPPAGES BUT I DON'T THINK IT WILL HAVE A MAJOR EFFECT MR VOLTMANN SAID BUT SOME INDEPENDENT TRUCKERS ALREADY ARE PARKING THEIR TRUCKS TO PROTEST HIGHER FUEL PRICES AND INCREASED GOVERNMENT REGULATION I'LL STAY OUT 30 DAYS IF THAT WILL HELP SAID BURL STALEY A MILLERS CREEK NC OWNEROPERATOR WHO HAULS BAKED CHICKEN AND PRODUCE HE NOTES THAT INDEPENDENT TRUCKERS DON'T HAVE THE CLOUT OF THE BIG TRUCK COMPANIES TO READILY PASS ON HIGHER COSTS TO THEIR CUSTOMERS IN THE FORM OF HIGHER RATES THE AMERICAN TRUCKING ASSOCIATIONS WHICH REPRESENTS TRUCKING COMPANIES VIGOROUSLY OPPPOSES THE PROPOSED SHUTDOWN IN A MESSAGE TO DRIVERS LAST FRIDAY THE ATA CITED A RECENT EASING OF THE FUELPRICE INCREASES WHILE WARNING THAT A DRIVER SHUTDOWN COULD JEOPARDIZE TRUCKING SAFETY SERVICE AND PUBLIC IMAGE WHAT'S MORE THE ORGANIZATION SAYS IT IS AT ODDS WITH INDEPENDENT TRUCKERS OPPOSING SUCH SAFETY INITIATIVES AS INCREASED GOVERNMENT INSPECTIONS OF RIGS DRUG AND ALCOHOL TESTING OF DRIVERS AND PROPOSED GOVERNMENT BANS ON RADAR DETECTORS IN COMMERCIAL VEHICLES IF THE GUYS FIGHTING FOR THESE REDUCTIONS IN OUR SAFETY EFFORTS GO ON STRIKE AND STAY OFF THE ROAD THAT'S FINE SAID JOHN DOYLE A SPOKESMAN FOR THE AMERICAN TRUCKING ASSOCIATIONS SAFER DRIVERS WILL CARRY THE FREIGHT 9311080172 931108 WHO'S NEWS WSFS FINANCIAL CORP WSFS FINANCIAL CORP WILMINGTON DEL FORMER DELAWARE GOV DALE WOLF 69 YEARS OLD NOW A CONSULTANT TO A RICHMOND VA LAW FIRM WAS ELECTED A DIRECTOR OF THIS FINANCIAL SERVICES COMPANY FILLING A VACANCY ON THE BOARD 9311080171 931108 FINANCING BUSINESS GLIMCHER REALTY TRUST GLIMCHER REALTY TRUST SAID IT REGISTERED AN INITIAL PUBLIC OFFERING OF 149 MILLION COMMON SHARES AT AN EXPECTED PRICE RANGE OF 2325 TO 2475 A SHARE THE LEAD UNDERWRITER IS PAINEWEBBER INC GLIMCHER IS A REAL ESTATE INVESTMENT TRUST BASED IN COLUMBUS OHIO 9311080170 931108 MESA AIR TRAFFIC GAINS FARMINGTON NM MESA AIRLINES SAID ITS OCTOBER TRAFFIC CLIMBED 78 TO 787 MILLION REVENUE PASSENGER MILES FROM 73 MILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE OCTOBER'S LOAD FACTOR OR PERCENTAGE OF SEATS FILLED WAS 516 UP FROM 512 9311080169 931108 FINANCING BUSINESS GIBRALTAR STEEL CORP GIBRALTAR STEEL CORP BUFFALO NY SAID IT BEGAN ITS INITIAL PUBLIC OFFERING OF 25 MILLION COMMON SHARES AT 11 EACH SALOMON BROTHERS INC IS THE LEAD UNDERWRITER GIBRALTAR A PROCESSOR OF STEEL PRODUCTS SAID IT WILL USE PROCEEDS TO REPAY DEBT 9311080168 931108 WHO'S NEWS BELMAC CORP BELMAC CORP TAMPA FLA DENIS NICOLAS 72 YEARS OLD WAS NAMED TO THE BOARD OF THIS PHARMACEUTICAL AND HEALTHCARE COMPANY INCREASING THE NUMBER OF DIRECTORS TO EIGHT MR NICOLAS IS PRESIDENT AND GENERAL MANAGER OF CHIMOS SA BELMAC'S FRENCH SUBSIDIARY 9311080167 931108 WHO'S NEWS HEALTHTRUST INC HEALTHTRUST INC NASHVILLE TENN HARRY N BEATY 61 YEARS OLD HAS BEEN ELECTED TO THE BOARD OF THE HOSPITAL COMPANY BOOSTING THE NUMBER OF DIRECTORS TO NINE DR BEATY IS A PROFESSOR OF MEDICINE AND THE DEAN OF NORTHWESTERN UNIVERSITY MEDICAL SCHOOL 9311080166 931108 LEISURE & ARTS ON SPORTS HOW DO YOU SAY LONG SHOT IN FRENCH BY FREDERICK C KLEIN ARCADIA CALIF THE SPORT OF THOROUGHBRED RACING WHICH COULD USE SOME LUCK IN THIS ERA OF DWINDLING INTEREST HAD A LOT OF IT HERE SATURDAY AFTERNOON ON THE 10TH BREEDERS' CUP DAY ITS ANNUAL SEASONCULMINATING BASH JUST A WEEK AFTER SMOKE FROM A GIANT BRUSH FIRE POURED FROM THE SAN GABRIEL MOUNTAINS WHICH FORM THE BACKDROP FOR THE CUP SITE AT SANTA ANITA PARK THE AIR WAS CLEAR AND THE SUN BRIGHT AFTER FIVE EQUINE FATALITIES AND AS MANY SERIOUS INJURIES OVER THE EVENT'S LAST FOUR YEARS ALL THE ANIMALS IN THE PROGRAM APPARENTLY ESCAPED UNSCATHED BETTING FAVORITES WON THREE OF THE SEVEN 1 MILLIONORMORE RACES ON THE CUP CARD AND SECOND CHOICES CAPTURED THREE MORE SO THAT ALL BUT THE MOST PERSISTENT UNDERDOG CHASERS AMONG THE 55130 IN ATTENDANCE PROBABLY CASHED AT LEAST ONE TICKET HORSES THAT HAVE CAMPAIGNED PRIMARILY IN THE US WON THE FIRST SIX CUP EVENTS CHEERING EQUINE PATRIOTS FIVE OF THEM WERE CALIFORNIA BASED TICKLING LOCAL CHAUVINISTS AND IN THE LAST CUP RACE THE FEATURED 3 MILLION CLASSIC EVERYBODY GOT A STORY TO TELL THE GRANDCHILDREN BECAUSE A FRENCH HORSE NAMED ARCANGUES AN OUTRAGEOUS LONG SHOT AT 133TO1 CHARGED DOWN THE MIDDLE OF THE HOMESTRETCH TO PASS AND BEAT FRONTRUNNING AND FAVORED BERTRANDO ARCANGUES PAID 26920 TO WIN ON A 2 BET 5440 TO PLACE AND 1820 TO SHOW THE FIGURES MADE AN ELOQUENT CASE AGAINST SHOW BETTING THE VICTORY MADE A HERO OF ARCANGUES A LEAN CHESTNUT FIVEYEAROLD WITH A HISTORY OF BACK TROUBLE ONLY TWO WINS AND A RELATIVELY PALTRY 174000 IN PURSE MONEY TO SHOW FOR HIS PREVIOUS TWO YEARS' EFFORTS BUT THE UPSET HAD JUST AS LARGE AN IMPACT ON THREE OF THE DAY'S OTHER WINNERS BY CATAPULTING THEM INTO THE LEADERSHIP FOR NORTH AMERICAN HORSE OF THE YEAR HONORS THAT NORMALLY GO TO CLASSIC WINNERS GENERALLY ADJUDGED TO HAVE BEEN UPPER CRUST THE THREE ARE HOLLYWOOD WILDCAT WINNER OF THE HOTLY CONTESTED DISTAFF FOR MARES AND FILLIES THREEYEARSOLD AND OLDER LURE THE DECISIVE WINNER OF THE MILE AND KOTASHAAN WHO WON THE 2 MILLION TURF EACH WAS A BETTING FAVORITE MEANING IT HAD A LARGE COTERIE OF SUPPORTERS COMING HERE AND EACH TURNED IN A PERFORMANCE THAT COULD ONLY EMBELLISH ITS LEGEND IF BREEDERS' CUP SENIORITY COUNTS IN SUCH MATTERS AND IT PROBABLY DOES LURE WILL COME OUT ON TOP IN THE H OF Y VOTING BECAUSE HIS SATURDAY TRIUMPH WAS A REPEAT LAST YEAR AT STEAMY GULFSTREAM PARK NEAR MIAMI THE BROWN COLT PREVAILED BY THREE LENGTHS OVER A STRONG FIELD THIS TIME HIS MARGIN WAS ONLY 2 1/4 LENGTHS BUT THAT LOOKED LIKE MORE ON A DAY IN WHICH FOUR WINNERS PREVAILED BY A FRACTION OF HIS OR HER ANATOMY LURE'S WIN ALSO STOOD OUT BECAUSE OF A MOVE THAT HAD VETERAN RACEGOERS BLINKING HE BEGAN HIS TRIP FROM THE DISADVANTAGEOUS POST POSITION OF 12 IN THE 13HORSE FIELD AND HAD FOUR HORSES BETWEEN HIMSELF AND THE RAIL AS HE FOUGHT FOR THE LEAD INTO THE FIRST TURN BUT BY THE TIME THE TURN HAD BEEN ROUNDED HE WAS ALONE IN FIRST AND STAYED THERE DID YOU SEE THAT INCIDENT ON THE FIRST TURN ASKED HIS DELIGHTED TRAINER SHUG MCGAUGHEY I HAD TO WATCH THE RERUN TO MAKE SURE I SAW WHAT I THOUGHT I'D SEEN IF THE PRIZE IS FOR COMPETITIVENESS HOLLYWOOD WILDCAT MIGHT DESERVE THE NOD SHE BEAT WHAT WAS PROBABLY THE DAY'S BEST FIELD INCLUDING LAST YEAR'S WINNER PASEANA AND NEW YORK STANDOUTS DISPUTE AND SKY BEAUTY THE LAST HAD WON NINE TIMES IN 11 STARTS INCLUDING THE RACES OF THE SOCALLED TRIPLE CROWN FOR THREEYEAROLD FILLIES AND HER POST PRICE OF 41 TO HOLLYWOOD WILDCAT'S 65 MIGHT EASILY HAVE BEEN ASCRIBED TO CALIFORNIA DREAMIN' IN THE END THOUGH HOLLYWOOD WILDCAT AND THE SIXYEAROLD ARGENTINABRED PASEANA DUELED DOWN THE HOMESTRETCH FLANKTOFLANK IN THE 1 1/8MILE RACE WITH THE THREEYEAROLD PREVAILING BY A NOSE THE USVERSUSEUROPE ISSUE A MAIN SUBPLOT EVERY BREEDERS' CUP DAY WAS SEEMINGLY DECIDED IN THE US'S FAVOR IN THE 1 1/2MILE TURF NINE OF THE 14 ENTRANTS WERE EUROPEANBASED GRASSTRACK SPECIALISTS INCLUDING FIVE TRAINED BY THE FRENCHMAN ANDRE FABRE BUT NOT ONLY DID KOTASHAAN WIN BY A DRIVING HALFLENGTH BUT SECONDPLACE BIEN BIEN WAS AN AMERICAN CAMPAIGNER TOO AND SO WHAT IF CALIFORNIARESIDENT KOTASHAAN WAS FRENCH BRED AND OWNED BUT THE LAST LAUGH WOULD GO TO FABRE WITH ARCANGUES HIS ONLY ENTRY IN THE 1 1/4MILE CLASSIC THIS WAS A HORSE THAT EVEN ITS HUMAN CONNECTIONS HAD A HARD TIME TAKING SERIOUSLY I DIDN'T KNOW HOW TO PRONOUNCE HIS NAME IT'S ARKANG AND I GOT TO THE PADDOCK LATE SO THERE WASN'T MUCH TIME TO GET INSTRUCTIONS FROM TRAINER FABRE SAID JERRY BAILEY THE WINNER'S FIRSTTIME JOCKEY WHO WON LAST MAY'S KENTUCKY DERBY ABOARD SEA HERO I HAD NO PLAN BUT TO LET HIM RUN HIS RACE SOMETIMES HORSES ARE RIDDEN TO DEATH BY FIRSTTIME RIDERS WHO DON'T KNOW ANYTHING ABOUT THEM TRAINER FABRE A SMALL DAPPER 47YEAROLD TESTIFIED THAT ARCANGUES WHO LIKE MOST EUROPEAN HORSES NEVER RACES ON DIRT WAS ENTERED IN THE CLASSIC ON THE BASIS OF A SINGLE GOOD WORKOUT ON A PARIS DIRT TRACK A MONTH AGO HE SOMETIMES SLIPS A DISC IN HIS BACK WHEN HE RUNS UP OR DOWN HILL AS MANY EUROPEAN TRACKS DEMAND FABRE EXPLAINED WE THOUGHT A FLAT COURSE MIGHT HELP HIM HE CONTINUED HE'S NOT THE BEST TRAVELER HE'S A VERY ANXIOUS HORSE WE DIDN'T LIKE HIS POST POSITION 13 AND HE DOESN'T ALWAYS RUN WELL BUT HE HAS HIS DAYS THAT ONE OF THEM WOULD BE SATURDAY WASN'T READILY APPARENT ARCANGUES WAS NINTH AT THE QUARTERMILE MARK 10TH AT THE HALF AND 7TH AT THE MILE HEADED FOR THE HOMESTRETCH HE WAS IN CONTENTION THOUGH AND WHEN A TIRING EZZOUD THE HORSE IN FRONT OF HIM MOVED ASIDE HE ZOOMED THROUGH ALEC WILDENSTEIN SON OF DANIEL WILDENSTEIN WHO OWNS ART GALLERIES AND ARCANGUES SAID THE ONCEINALIFETIME RUN WOULD BE JUST THAT WE'LL RETIRE HIM TO STUD IN FRANCE NOW SAID HE NOTHING HE COULD DO IN THE FUTURE COULD TOP WHAT HE DID TODAY 9311080165 931108 HOLNAM IS CALLING DEBENTURES DUNDEE MICH HOLNAM INC SAID IT'S CALLING ALL 153 MILLION OF ITS 9 1/4 SINKINGFUND DEBENTURES OUTSTANDING DUE IN 2000 AT A PRICE OF 100930 PER 1000 PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THE DEBENTURES ORIGNALLY WERE ISSUED UNDER A JUNE 15 1975 INDENTURE BY IDEAL BASIC INDUSTRIES WHICH LATER MERGED WITH DUNDEE CEMENT CO TO FORM HOLNAM THE REDEMPTION DATE IS DEC 10 1993 INTEREST IS PAYABLE FROM JUNE 15 1993 TO THE REDEMPTION DATE 9311080164 931108 FINANCING BUSINESS CANADA MORTGAGE & HOUSING CORP CANADA MORTGAGE & HOUSING CORP SAID IT PLANS TO OFFER SOON ONE BILLION CANADIAN DOLLARS US773 MILLION OF FIVEYEAR BONDS THE GOVERNMENT HOUSING AGENCY'S FIRST BOND ISSUE THE CANADIAN DOLLARDENOMINATED BONDS WILL BE DISTRIBUTED SIMULTANEOUSLY IN THE US CANADA ASIA AND EUROPE PROCEEDS WILL BE USED TO REFINANCE MORTGAGES ON GOVERNMENTASSISTED HOUSING THE MORTGAGES ARE CURRENTLY HELD BY BANKS AND OTHER INSTITUTIONS 9311080163 931108 TREASURY SLATES OFFER OF 16 BILLION OF BILLS WASHINGTON THE TREASURY PLANS TO RAISE 175 BILLION IN NEW CASH WITH THE SALE ON NOV 16 OF ABOUT 16 BILLION OF 52WEEK BILLS TO REDEEM 1426 BILLION IN MATURING BILLS THE CUSIP NUMBER FOR THE BILLS IS 912794L93 THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS WILL MATURE NOV 17 1994 NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EST THE DAY OF THE AUCTION AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM 9311080162 931108 US AUTO MAKERS SAY THEY PLANNED TO RAISE OUTPUT 47 IN WEEK DETROIT THE 10 DOMESTIC AUTO MAKERS SAID THEY PLANNED TO BUILD 230976 CARS AND TRUCKS LAST WEEK UP 47 FROM THE 220559 VEHICLES BUILT A YEAR AGO GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP OPERATED OVERTIME SHIFTS AT VARIOUS CANADIAN AND US FACTORIES LAST WEEK GM AND CHRYSLER ALSO SAID THEY PLAN OVERTIME THIS WEEK 9311080161 931108 WHO'S NEWS SYSCO CORP SYSCO CORP HOUSTON JOHN K STUBBLEFIELD JR 47 YEARS OLD CURRENTLY VICE PRESIDENT AND CONTROLLER WILL BECOME SENIOR VICE PRESIDENT AND CHIEF ACCOUNTING OFFICER AND WILL CONTINUE AS CONTROLLER EFFECTIVE JAN 1 ALSO ON THAT DATE WILLIAM J DELANEY 38 TREASURER OF THIS FOOD DISTRIBUTION COMPANY WILL BE GIVEN THE ADDITIONAL TITLE OF APPOINTMENTS WILL FOLLOW THE JAN 1 RETIREMENT OF E JAMES LOWREY EXECUTIVE VICE PRESIDENT OF FINANCE AND ADMINISTRATION 9311080160 931108 VERTEX INDUSTRIES INC POSTPONES STOCK SPLIT CITING SWINGS IN PRICE CLIFTON NJ VERTEX INDUSTRIES INC SAID IT'S POSTPONING INDEFINITELY ITS RECENTLY ANNOUNCED 2FOR1 STOCK SPLIT BECAUSE OF RECENT VOLATILITY IN ITS STOCK PRICE THE SOFTWARE MAKER'S SHARES WHICH WERE TRADING AROUND 23 WHEN THE SPLIT WAS ANNOUNCED IN LATE SEPTEMBER HAVE SINCE TRADED AS HIGH AS 2750 AND AS LOW AS 9 A SHARE THE STOCK CLOSED AT 1325 ON FRIDAY UP 25 CENTS ON THE NASDAQ STOCK MARKET THE COMPANY SAID THAT AT ITS ANNUAL MEETING IN JANUARY IT WILL SEEK SHAREHOLDER APPROVAL TO INCREASE THE NUMBER OF AUTHORIZED SHARES AND CHANGE THE PAR VALUE OF VERTEX COMMON STOCK IN ORDER TO ARRANGE A FUTURE STOCK SPLIT OR ADDITIONAL FINANCING THE RECORD DATE FOR THE POSTPONED STOCK SPLIT WAS NOV 22 9311080159 931108 TECHNOLOGY & MEDICINE SCHIZOPHRENIA DRUG CLOZARIL PRODUCES BIG SAVINGS BY CUTTING HOSPITAL STAYS BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY OF THE SCHIZOPHRENIA DRUG CLOZARIL CONTROVERSIAL FOR ITS STEEP PRICE FOUND THAT IT PRODUCES BIG SAVINGS IN HEALTHCARE COSTS BY CUTTING DOWN ON HOSPITAL STAYS THE STUDY MARKS AN EFFORT BY CLOZARIL'S SUPPORTERS TO DEFUSE CONCERN ABOUT ITS PRICE TAG BY TAKING A BROADER VIEW OF SCHIZOPHRENIA'S ECONOMIC TOLL IT FOUND THAT THE ANNUAL HOSPITAL BILL FOR PATIENTS IN THE STUDY DROPPED FROM 44810 BEFORE TAKING CLOZARIL TO 2592 AFTER TAKING THE DRUG OVERALL THE DRUG REDUCED THE TOTAL COST OF CARING FOR A SCHIZOPHRENIA PATIENT BY ABOUT 8700 A YEAR CLOZARIL HAS BEEN HAILED AS A BREAKTHROUGH TREATMENT FOR ONE OF THE MOST OBSTINATE AND DEVASTATING OF ALL CHRONIC ILLNESSES BUT ITS MAKER SANDOZ AG HAS DRAWN HEAVY CRITICISM FOR THE DRUG'S HIGH PRICE CURRENTLY ABOUT 4160 TO WHOLESALERS FOR A TYPICAL YEAR'S DOSE THE PRICE ALONG WITH THE ELABORATE PROCEDURES FOR A REQUIRED BLOOD TEST HAVE CHOKED OFF ACCESS TO CLOZARIL MOST OF THE 200000 SCHIZOPHRENICS CONSIDERED CANDIDATES FOR THE DRUG IN THE US ARE POOR AND TODAY ONLY 48000 USE THE DRUG SANDOZ HELPED FUND THE NEW STUDY PUBLISHED IN THE NOVEMBER ISSUE OF THE AMERICAN JOURNAL OF PSYCHIATRY SANDOZ HAS ANOTHER STRONG INTEREST IN PROMOTING CLOZARIL'S COSTEFFECTIVENESS IT MAY SOON FACE COMPETITION FROM A NEW JOHNSON & JOHNSON DRUG BEING TOUTED AS SAFER AND CHEAPER THAN CLOZARIL JOHNSON & JOHNSON'S DRUG CALLED RISPERDAL WON PRELIMINARY APPROVAL IN APRIL FROM A US FOOD AND DRUG ADMINISTRATION PANEL OF OUTSIDE EXPERTS AND IS EXPECTED TO HIT THE MARKET IN THE NEXT FEW MONTHS IT ALREADY SELLS IN CANADA FOR LESS THAN HALF THE PRICE OF CLOZARIL AND ALSO DOESN'T REQUIRE A WEEKLY BLOOD TEST THAT ADDS 300 TO 3000 PER YEAR TO THE COST OF CLOZARIL PSYCHIATRISTS CALLED THE NEW CLOZARIL STUDY THE MOST THOROUGH EFFORT YET TO ASSESS THE DRUG'S COSTS AND SAVINGS THE STUDY LOOKED AT 96 SCHIZOPHRENIA PATIENTS FOR TWO YEARS BEFORE TAKING THE DRUG AND TWO YEARS AFTER ALONG WITH HOSPITAL BILLS IT ALSO ESTIMATED THE COST OF OUTPATIENT CARE WHICH ROSE FOR CLOZARIL PATIENTS AND PATIENTS' BUYING SPREES LEGAL FEES AND OTHER RELATED EXPENSES COUNTING ALL THESE AREAS THE AVERAGE ANNUAL COST OF CARING FOR A PATIENT FELL ABOUT 8700 THAT STATISTIC INCLUDES 37 PATIENTS WHO STOPPED OR INTERRUPTED THEIR TREATMENT ON CLOZARIL WHOSE GENERIC NAME IS CLOZAPINE COUNTING ONLY THE PATIENTS WHO STAYED ON CLOZARIL THE AVERAGE ANNUAL COST OF CARE FELL ABOUT 23000 A YEAR THE PEOPLE WHO CRITICIZE CLOZAPINE DIDN'T APPRECIATE THAT IT WAS THAT MUCH MORE EFFECTIVE AND ONLY LOOKED AT IT AS AN INCREASED COST SAID THE STUDY'S LEAD AUTHOR PSYCHIATRIST HERBERT MELTZER OF THE CASE WESTERN RESERVE SCHOOL OF MEDICINE HE SAID SCHIZOPHRENIC PATIENTS ACCOUNT FOR 25 OF ALL HOSPITAL BEDS EVEN BEFORE THE STUDY CRITICISM OF CLOZARIL HAD BEEN EASING IN PART BECAUSE OF THE GROWING NUMBER OF PATIENTS WHO HAVE EMERGED FROM SCHIZOPHRENIA'S PRISON OF PARANOIA AND PSYCHOSIS AS A RESULT OF THE DRUG SANDOZ ALSO QUIETED SOME OF THE OUTCRY IN 1991 BY CEASING TO CHARGE A SINGLE PRICE NEARLY 9000 A YEAR FOR THE DRUG AND A WEEKLY BLOOD TEST IF ONE IS LOOKING AT THE COST OF ONE YEAR OR MORE OF CARING FOR A PATIENT THEN CLOZAPINE IS COSTEFFECTIVE FOR AT LEAST ONETHIRD AND PROBABLY OVER HALF THE PATIENTS SAID WILLIAM REID A SENIOR TEXAS MENTALHEALTH OFFICIAL WHO WAS AN EARLY CRITIC OF SANDOZ'S HIGH PRICE DR REID SAID HE RECENTLY COMPLETED A STUDY OF TEXAS MENTAL PATIENTS THAT ALSO SHOWS CLOZARIL SHARPLY REDUCES HOSPITAL STAYS HE SAID THE TEXAS STATE MENTALHEALTH SYSTEM CURRENTLY TREATS 1000 SCHIZOPHRENIA PATIENTS WITH CLOZARIL BUT HE SAID HE DOESN'T HAVE STATE FUNDS TO TREAT ANY MORE PATIENTS WITH THE DRUG EVEN THOUGH AN ADDITIONAL 40000 STATE PATIENTS ARE CANDIDATES FOR CLOZARIL SANDOZ WILL LOSE ITS EXCLUSIVE RIGHTS TO CLOZAPINE LATE NEXT YEAR A SANDOZ SPOKESMAN SAID HE KNOWS OF NO OTHER COMPANIES THAT PLAN TO MARKET THE DRUG 9311080158 931108 TECHNOLOGY JOHNSON & JOHNSON RECALLS DIABETES STRIPS PRODUCED BY LIFESCAN NEW BRUNSWICK NJ JOHNSON & JOHNSON SAID IT BEGAN A RECALL OF TEST STRIPS USED IN THE HOME DIABETESMONITORING DEVICE MADE BY ITS LIFESCAN UNIT POSSIBLE DEFECTS IN THE FOIL PACKAGING MAY EXPOSE THE STRIPS TO MOISTURE AND CAUSE INACCURATE LOW READINGS OF A PATIENT'S BLOOD GLUCOSE LEVEL THE COMPANY SAID THE HOME GLUCOSE MONITORS ALLOW PEOPLE WITH DIABETES TO GAUGE THEIR INSULIN AND OTHER TREATMENT NEEDS THE COMPANY SENT OUT MORE THAN ONE MILLION LETTERS TO PATIENTS PHYSICIANS AND DISTRIBUTORS OF THE TEST STRIPS THE COMPANY SAID IT WILL REPLACE THE RECALLED PRODUCTS WITH STRIPS PACKED IN VIALS THE FOILWRAPPED STRIPS ARE A SMALL PORTION OF THE STRIPS JOHNSON & JOHNSON SELLS BECAUSE THEY WERE JUST INTRODUCED THIS PAST SPRING A SPOKESMAN SAID 9311080157 931108 WHO'S NEWS FLAGSTAR COS FLAGSTAR COS SPARTANBURG SC SAMUEL H MAW 60 YEARS OLD A SENIOR VICE PRESIDENT HAS ASSUMED OPERATING RESPONSIBILITY FOR THIS FOOD SERVICE COMPANY'S CANTEEN FOOD CONTRACT DIVISION MR MAW STEPS IN FOR ALAN R PLASSCHE WHO RESIGNED AS CHIEF OPERATING OFFICER OF CANTEEN TO BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF COMSOURCE AN ATLANTABASED COOPERATIVE OF FOOD SERVICE DISTRIBUTION COMPANIES AN IMMEDIATE SUCCESSOR TO MR PLASSCHE HASN'T BEEN NAMED YET 9311080156 931108 BURNUP & SIMS ACQUISITION FORT LAUDERDALE FLA BURNUP & SIMS INC SAID IT COMPLETED NEGOTIATIONS TO ACQUIRE CHURCH & TOWER INC AND CHURCH & TOWER OF FLORIDA INC FOR ABOUT 58 MILLION THE ACQUISITION WILL RESULT IN THE ISSUANCE OF ABOUT 10250000 SHARES OR ALMOST 64 OF BURNUP COMMON STOCK TO SHAREHOLDERS OF CHURCH & TOWER BURNUP & SIMS AND CHURCH & TOWER ARE BOTH TELECOMMUNICATIONS SERVICE COMPANIES 9311080155 931108 WHO'S NEWS CHEMEX PHARMACEUTICALS INC CHEMEX PHARMACEUTICALS INC FORT LEE NJ SANDFORD D SMITH 46 YEARS OLD WAS ELECTED A DIRECTOR OF THIS PRESCRIPTIONDRUG CONCERN INCREASING THE BOARD'S SIZE TO EIGHT MR SMITH IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF REPLIGEN CORP A BIOTECHNOLOGY COMPANY 9311080154 931108 MARKETING & MEDIA NBC WILL RETURN TODAY' TO STREETLEVEL STUDIO NEW YORK NBC'S TODAY SHOW IS RETURNING TO ITS ROOTS A STREETLEVEL STUDIO WITH WINDOWS FOR PASSERSBY TO WATCH ANCHORS BRYANT GUMBEL AND KATIE COURIC AT WORK THE THREESTORY MULTIMILLIONDOLLAR FACILITY TO BE CONSTRUCTED ACROSS THE STREET FROM NBC'S CURRENT HOME AT 30 ROCKEFELLER PLAZA IS EXPECTED TO BE READY BY FALL 1994 THE MORNING SHOW AIRED FROM A NEARBY STREETLEVEL STUDIO FROM 1952 UNTIL 1958 WHEN IT MOVED TO ITS CURRENT LOCATION INSIDE NBC HEADQUARTERS NBC HOPES THE MOVE WILL HELP BOOST THE PROGRAM'S VIEWERSHIP TODAY RUNS A CLOSE SECOND TO GOOD MORNING AMERICA WHICH AIRS ON CAPITAL CITIES/ABC INC'S ABC NETWORK NBC'S PRIMETIME NEWSMAGAZINE NOW HOSTED BY MS COURIC AND TOM BROKAW WILL ALSO USE THE STREETLEVEL STUDIO THE STUDIO PROJECT WILL BE ANNOUNCED AT A NEWS CONFERENCE IN NEW YORK THIS MORNING NBC IS OWNED BY GENERAL ELECTRIC CO 9311080153 931108 IMPORTEDVEHICLE SALES IN JAPAN FELL 75 IN MONTH SPECIAL TO THE WALL STREET JOURNAL TOKYO SALES OF IMPORTED CARS TRUCKS AND BUSES IN JAPAN DECLINED 75 IN OCTOBER FROM THE YEAREARLIER MONTH TO 13424 UNITS MARKING THE FIRST YEARONYEAR DROP IN NINE MONTHS THE JAPAN AUTOMOBILE IMPORTERS' ASSOCIATION REPORTED AN ASSOCIATION SPOKESMAN ATTRIBUTED THE DECLINE TO AN INSUFFICIENT SUPPLY OF NEW MODELS INTRODUCED SO FAR THIS AUTUMN IN ADDITION SALES OF USMADE ACCORD CARS OF JAPAN'S HONDA MOTOR CO SLUMPED AS CONSUMERS REFRAINED FROM PURCHASING THE CURRENT MODEL PRIOR TO THE SCHEDULED INTRODUCTION OF A NEW MODEL NEXT MARCH HE SAID IN OCTOBER SALES OF VEHICLES BUILT AT OVERSEAS PLANTS OF JAPANESE MAKERS FELL 23 FROM THE YEAR BEFORE TO 2294 UNITS ACCOUNTING FOR 18 OF THE OVERALL IMPORTEDVEHICLE SALES FOR THE MONTH DESPITE THE THREEYEARLONG SLUMP IN THE JAPANESE CAR MARKET IMPORTEDVEHICLE SALES HAD INCREASED THROUGH SEPTEMBER HELPED BY PRICE REDUCTIONS AND LOWER INTEREST RATES FOR LOANS THAT FOREIGN MAKERS HAVE OFFERED TO PASS ON BENEFITS THEY GAINED FROM THE YEN'S APPRECIATION ALTHOUGH REGISTRATION OF IMPORTED VEHICLES DROPPED IN OCTOBER NEWMODEL IMPORTS ENJOYED STRONG DEMAND THE ASSOCIATION SPOKESMAN SAID CHRYSLER CORP WITH THE POPULARITY OF ITS RIGHTHANDSTEERING CHEROKEE MODELS CONTINUED TO PUSH UP SALES HE SAID BUT EUROPEAN MAKERS SUCH AS ROVER GROUP BMW AND MERCEDESBENZ LOST SALES BECAUSE OF INSUFFICIENT SHIPMENTS OF THEIR NEW MODELS THOUGH THEY HAVE RECEIVED A HIGH LEVELS OF ORDERS HE SAID WITH SOME FOREIGN MAKERS INCLUDING FORD MOTOR CO PLANNING TO REDUCE PRICES FURTHER THIS MONTH AND JAPANESE MAKERS SUCH AS NISSAN MOTOR CO AND TOYOTA MOTOR CORP PLANNING TO INCREASE IMPORTS FROM THEIR OVERSEAS PLANTS LATER THIS YEAR IT'S UNLIKELY THAT IMPORTEDVEHICLES SALES WILL CONTINUE TO DECLINE SHARPLY IN COMING MONTHS THE SPOKESMAN SAID 9311080152 931108 BUSINESS BRIEF SARA LEE CORP COMPANY BUYS PERI SHOJI JAPANESE HOSIERY DISTRIBUTOR SARA LEE CORP SAID IT ACQUIRED PERI SHOJI CO A TOKYO HOSIERY DISTRIBUTOR THE CHICAGO FOOD AND CONSUMERPRODUCTS CONCERN DIDN'T DISCLOSE TERMS SARA LEE HAS BEEN AGGRESSIVELY EXPANDING ITS INTERNATIONAL APPAREL PRESENCE IN RECENT YEARS PARTICULARLY IN WESTERN EUROPE IN JAPAN IT RECENTLY ACQUIRED A KNITPRODUCTS CONCERN AND HAS OPENED A REGIONAL HEADQUARTERS FOR THE COMPANY'S PERSONALPRODUCTS BUSINESS A SPOKESWOMAN SAID SARA LEE CONSIDERS THE ASIAN MARKET WHICH CURRENTLY PROVIDES A RELATIVELY SMALL PORTION OF ITS TOTAL SALES A REGION WITH GROWING OPPORTUNITY THE PERI SHOJI ACQUISITION SARA LEE SAID WILL PERMIT THE COMPANY TO PARTICIPATE MORE DIRECTLY IN THE JAPANESE HOSIERY MARKET THE JAPANESE CONCERN IT ADDED REPRESENTS A SOLID BASE FROM WHICH TO EXPAND OUR DISTRIBUTION OF HANES AND OTHER SARA LEE HOSIERY PRODUCTS 9311080151 931108 BUSINESS BRIEF GENRAD INC LOSS WIDENED IN QUARTER REVAMPING CHARGE BLAMED GENRAD INC REPORTED A WIDER LOSS FOR THE THIRD QUARTER BECAUSE OF A RESTRUCTURING CHARGE AND SEASONAL SOFTNESS IN THE TEST EQUIPMENT MARKET THE CONCORD MASS SUPPLIER OF SEMICONDUCTOR TEST EQUIPMENT REPORTED A LOSS OF 448 MILLION OR 246 A SHARE AFTER A PREVIOUSLY ANNOUNCED RESTRUCTURING CHARGE OF 414 MILLION OR 228 A SHARE A YEAR AGO IT REPORTED A LOSS OF 25 MILLION OR 14 CENTS A SHARE ITS LOSS BEFORE THE CHARGE WAS 21 MILLION NARROWED FROM THE YEARAGO LEVEL REVENUE INCREASED 94 TO 358 MILLION FROM 327 MILLION THE COMPANY EXPRESSED OPTIMISM FOR THE FOURTH QUARTER SAYING THAT ORDERS HAD TURNED UP AT THE END OF THE THIRD PERIOD AND CONTINUED STRONG INTO THE BEGINNING OF THE CURRENT QUARTER 9311080150 931108 INTERNATIONAL IRISH UNEMPLOYMENT RATE RISES LONDON IRELAND'S UNEMPLOYMENT RATE INCHED UP TO A SEASONALLY ADJUSTED 178 OF THE WORK FORCE IN OCTOBER FROM 177 IN SEPTEMBER THE CENTRAL STATISTICS OFFICE SAID WITHOUT SEASONAL ADJUSTMENT IRELAND'S UNEMPLOYMENT RATE FELL TO 173 IN OCTOBER FROM 175 IN SEPTEMBER THE FIGURES REFLECT THE NAMES OF PEOPLE IN IRELAND'S WORK FORCE APPEARING ON THE LIVE REGISTER A LIST OF THOSE IN RECEIPT OF UNEMPLOYMENT BENEFITS OR UNEMPLOYMENT ASSISTANCE AS WELL AS JOBLESS WORKERS WHO AREN'T CURRENTLY ENTITLED TO BENEFITS THE NUMBER OF PEOPLE CONSIDERED UNEMPLOYED ON THIS BASIS IN THE LATEST MONTH WAS DOWN 3700 FROM SEPTEMBER AND UP 4500 FROM A YEAR EARLIER 9311080149 931108 WHO'S NEWS HALLIBURTON CO HALLIBURTON CO HOUSTON DAVID J LESAR WAS NAMED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT FINANCE AND ADMINISTRATION OF THIS OIL SERVICE AND CONSTRUCTION COMPANY'S ENERGY SERVICES BUSINESS EFFECTIVE DEC 1 MR LESAR 40 YEARS OLD IS CURRENTLY A PARTNER IN THE DALLAS OFFICE OF ARTHUR ANDERSEN & CO 9311080148 931108 FEDERALMOGUL TO CLOSE PLANT SOUTHFIELD MICH FEDERALMOGUL CORP SAID IT WILL CLOSE ITS LAFAYETTE TENN FUEL SYSTEMS PLANT AS PART OF A PREVIOUSLY ANNOUNCED CONSOLIDATION ABOUT 400 EMPLOYEES IN LAFAYETTE WILL BE AFFECTED FUEL SYSTEMS OPERATIONS WILL BE RELOCATED TO EXISTING FACILITIES IN INDIANA THE COMPANY'S LOGANSPORT IND PLANT WHICH WAS ALSO AT RISK OF CLOSING WILL REMAIN OPEN AS A RESULT OF THE DECISION THE COMPANY EXPECTS TO COMPLETE THE SHUTDOWN BY JUNE 30 1994 9311080147 931108 WHO'S NEWS REDMAN INDUSTRIES INC REDMAN INDUSTRIES INC DALLAS CA RUNDELL JR 61YEAROLD CHAIRMAN OF NCI BUILDING SYSTEMS INC AND ROBERT L STARK 60 RETIRED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF HALLMARK CARDS INC WERE ELECTED TO THE BOARD OF THIS MAKER OF MANUFACTURED HOUSING INCREASING THE BOARD'S SIZE TO SEVEN 9311080146 931108 FINANCING BUSINESS FAIRFAX FINANCIAL HOLDINGS LTD FAIRFAX FINANCIAL HOLDINGS LTD SAID IT AGREED WITH UNDERWRITERS TO SELL TWO MILLION SUBORDINATE VOTING SHARES AT 55 CANADIAN DOLLARS US42 EACH FOR NET PROCEEDS TO FAIRFAX OF C105 MILLION FAIRFAX A TORONTO INSURANCE AND FINANCIALSERVICES CONCERN SAID IT WILL USE THE PROCEEDS TO HELP FINANCE ITS ACQUISITION OF RANGER INSURANCE CO HOUSTON FAIRFAX LAST MONTH SAID IT AGREED TO ACQUIRE RANGER FOR US135 MILLION BY YEAR END FAIRFAX HAS 52 MILLION SHARES OUTSTANDING AND THE STOCK CLOSED AT C56 UNCHANGED ON THE TORONTO STOCK EXCHANGE FRIDAY THE UNDERWRITING GROUP IS LED BY WOOD GUNDY INC TORONTO 9311080145 931108 PEOPLE PATTERNS BY DIANE CRISPELL OF AMERICAN DEMOGRAPHICS MAGAZINE FORGET THE CLASSIC IMAGE OF A FARM GIRL AND HER DOG CARRIED OFF BY A KANSAS TWISTER TORNADOES ARE MORE COMMON IN URBAN AREAS THAN IN RURAL AMERICA PREVIOUS RESEARCH HAS SHOWN THAT CITIES AFFECT LOCAL CLIMATES THEY HAVE MORE CONTAMINANTS THAN DO NEARBY RURAL AREAS AS WELL AS LESS RADIATION MORE CLOUDINESS AND PRECIPITATION HIGHER TEMPERATURES LOWER HUMIDITY AND GENERALLY GENTLER WINDS THEY MAY ALSO PROMOTE TORNADO FORMATION ACCORDING TO A NEW STUDY BY SOCIOLOGIST BE AGUIRRE AND COLLEAGUES AT TEXAS A&M UNIVERSITY THE RESEARCHERS STUDIED 1637 COUNTIES THAT HAD AT LEAST ONE TORNADO BETWEEN 1950 AND 1990 IN THE 17 STATES THAT EXPERIENCED THREEFOURTHS OF THE NATION'S TORNADOES DURING THAT PERIOD COUNTIES THAT ARE HOME TO CENTRAL ITIES OF METROPOLITAN AREAS ARE SIGNIFICANTLY MORE LIKELY THAN SUBURBAN OR NONMETROPOLITAN COUNTIES TO EXPERIENCE TORNADOES REGARDLESS OF PHYSICAL CHARACTERISTICS SUCH AS SIZE PROXIMITY TO A COAST PROPORTION OF WATERCOVERED LAND OR OTHER TOPOGRAPHICAL FEATURES THE AUTHORS NOTE THAT BESIDES THE URBAN FACTOR THE ONLY STRONG INDICATOR OF WHERE TORNADOES WILL OCCUR ELSEWHERE IS WHERE THEY HAVE OCCURRED IN THE PAST THE NORTHEAST WAS THE ONLY US REGION THAT SAW AN INCREASE IN HOMEOWNERSHIP IN THE 1980S MAINLY BECAUSE IT HAS AN OLDER POPULATION DIFFERENT SOURCES PROVIDE DIFFERENT NUMBERS BUT THEY ALL AGREE THAT THE NATIONAL HOMEOWNERSHIP RATE FELL IN THE 1980S HOWEVER CENSUS DATA SHOW THAT HOMEOWNERSHIP GREW IN THE NORTHEAST TO 61 IN 1990 FROM 59 IN 1980 F JOHN DEVANEY OF THE CENSUS BUREAU'S HOUSING AND HOUSEHOLDECONOMIC STATISTICS DIVISION FINDS THAT THE NORTHEAST'S DEMOGRAPHIC MAKEUP IS THE REASON ONE REASON WHY THE NORTHEAST'S OWNERS INCREASED FASTER THAN ITS RENTERS IN THE 1980S IS THAT PEOPLE WHO MOVE FROM ONE REGION TO ANOTHER TEND TO BE YOUNG RENTERS AND THE NORTHEAST HAD RELATIVELY LESS OF THIS KIND OF INMIGRATION THAN DID OTHER REGIONS THE REGION ALSO HAS A HEAVIERTHANAVERAGE CONCENTRATION OF PEOPLE AGED 45 TO 74 THOSE MOST LIKELY TO OWN THEIR HOMES AND TO STAY PUT SPECIFIC GROUPS BOTH WITHIN AND OUTSIDE THE NORTHEAST SAW GAINS IN HOMEOWNERSHIP IN THE 1980S FOR WHITES AND BLACKS THE NORTHEAST WAS THE ONLY REGION WITH GAINS IN HOMEOWNERSHIP BUT THE HOMEOWNERSHIP RATE FOR ASIAN AND PACIFIC ISLANDER HOUSEHOLDS ROSE IN THE NORTHEAST AND SOUTH WHILE THAT FOR NATIVE AMERICANS INCREASED IN THE MIDWEST AND SOUTH FOR HISPANICS OF WHATEVER RACE OWNERSHIP RATES MOVED UP IN THE NORTHEAST AND MIDWEST HIGHER HOMEOWNERSHIP IS GOOD FOR BUILDERS AND OTHER BUSINESSES BUT MR DEVANEY NOTES THAT TODAY'S RENTERS OFTEN BECOME TOMORROW'S BUYERS WHERE HOMEOWNERSHIP GROWS AND THE RENTER POPULATION DOESN'T THE FUTURE HOMEOWNER MARKET COULD BE IN TROUBLE THE PROPORTION OF LOWINCOME STUDENTS AT PUBLIC BLACK COLLEGES IS DOWN BUT IT REMAINS HIGHER THAN AT OTHER TYPES OF HIGHEREDUCATION INSTITUTIONS SEVENTYONE PERCENT OF STUDENTS AT PUBLIC BLACK COLLEGES WERE FROM FAMILIES WHOSE INCOMES FELL BELOW THE 1992 NATIONAL MEDIAN OF 44565 FOR ALL FRESHMEN ACCORDING TO AN ANALYSIS OF THE UCLA FRESHMAN SURVEY IN THE POSTSECONDARY EDUCATION OPPORTUNITY A NEWSLETTER PUBLISHED IN IOWA CITY IOWA THIS SHARE WAS DOWN FROM 86 IN 1978 ASIDE FROM PUBLIC BLACK COLLEGES INSTITUTIONS WITH LARGE SHARES OF LOWINCOME STUDENTS INCLUDE PRIVATE BLACK COLLEGES PUBLIC AND PRIVATE TWOYEAR SCHOOLS AND FOURYEAR COLLEGES WITH LOW ACADEMIC SELECTIVITY SCHOOLS WITH LARGE SHARES OF HIGHINCOME STUDENTS INCLUDE HIGHLY SELECTIVE PUBLIC UNIVERSITIES AS WELL AS HIGHLY SELECTIVE FOURYEAR PUBLIC ROMAN CATHOLIC AND NONSECTARIAN COLLEGES SOME OF THESE REPLACED HIGHERINCOME STUDENTS WITH LOWERINCOME STUDENTS BETWEEN 1978 AND 1992 BUT 17 OF THE 23 TYPES OF HIGHEREDUCATION INSTITUTIONS STUDIED DID NOT THE SHARE OF WORKERS WHO DON'T WORK FULL TIME GREW TO 19 IN 1992 FROM LESS THAN 16 IN 1969 AN ANALYSIS OF BUREAU OF LABOR STATISTICS DATA FROM THE NONPROFIT EMPLOYEE BENEFIT RESEARCH INSTITUTE WASHINGTON SHOWS THAT VIRTUALLY ALL THIS GROWTH HAS BEEN AMONG THOSE WHO WORK PART TIME ON AN INVOLUNTARY BASIS SOME OF THESE PEOPLE WOULD PREFER FULLTIME WORK BUT CAN'T FIND IT OTHERS HAVE CONSTRAINTS THAT KEEP THEM FROM WORKING FULL TIME SUCH AS A LACK OF CHILD CARE WORKING WOMEN ARE MUCH MORE LIKELY THAN NONWORKING WOMEN TO HIRE HOUSEHOLD HELP BUT JUST SOMEWHAT MORE LIKELY TO EAT OUT OR HAVE MEALS DELIVERED RS OROPESA OF PENNSYLVANIA STATE UNIVERSITY WHO ANALYZED DATA COLLECTED FOR DDB NEEDHAM IN 1990 FOUND THAT AMONG NONRETIRED WIVES UNDER AGE 65 WITH FULLTIME WORKING HUSBANDS 20 OF FULLTIME WORKERS BOUGHT HOUSECLEANING SERVICES WITHIN THE PREVIOUS YEAR VS JUST 4 OF NONWORKING WIVES FULLTIME WORKING WIVES AVERAGED ALMOST TWO DINNERS OUT A MONTH VS SLIGHTLY MORE THAN ONE FOR WIVES AT HOME 9311080144 931108 UNITED AIR TRAFFIC IS UP CHICAGO UNITED AIRLINES SAID ITS OCTOBER TRAFFIC ROSE 83 TO 865 BILLION REVENUE PASSENGER MILES FROM 798 BILLION 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 684 FROM 668 FOR THE FIRST 10 MONTHS OF 1993 THE UAL CORP UNIT SAID IT FLEW 85 BILLION REVENUE PASSENGER MILES OR A 94 INCREASE FROM THE 776 BILLION FLOWN IN THE SAME PERIOD IN 1992 LOAD FACTOR WAS 675 OFF FROM 684 9311080143 931108 WHO'S NEWS FEDERALMOGUL CORP FEDERALMOGUL CORP SOUTHFIELD MICH FRED J MUSONE FORMER PRESIDENT OF CHASSIS PRODUCTS OPERATIONS WAS NAMED TO THE NEWLY CREATED POST OF PRESIDENT OF WORLDWIDE MANUFACTURING AT THIS AUTOMOTIVEPARTS MANUFACTURER ALAN C JOHNSON FORMER VICE PRESIDENT FOR SEALING PRODUCTS OPERATIONS WAS NAMED VICE PRESIDENT POWERTRAIN OPERATIONS FOR THE AMERICAS D JAMES DAVIS WAS NAMED VICE PRESIDENT CHASSIS OPERATIONS MR DAVIS AND MR JOHNSON WILL REPORT TO MR MUSONE JAMES O DAVIS GENERAL MANAGER OF LIGHTING AND ELECTRICAL PRODUCTS WAS NAMED VICE PRESIDENT FOR DISTRIBUTION AND LOGISTICS OF WORLDWIDE AFTERMARKET OPERATIONS 9311080142 931108 BUSINESS BRIEF PHILIPPINE LONG DISTANCE TELEPHONE NET INCOME INCREASED 42 DURING FIRST NINE MONTHS PHILIPPINE LONG DISTANCE TELEPHONE CO REPORTED A 42 RISE IN NET INCOME FOR THE FIRST NINE MONTHS OF 1993 TO 379 BILLION PESOS 1309 MILLION FROM 364 BILLION PESOS A YEAR EARLIER ANALYSTS SAID THE COMPANY MADE A STRONG SHOWING ON THE BACK OF THE SHARP DEPRECIATION OF THE PESO DURING THE THIRD QUARTER AND INCREASED INTERNATIONAL AND LOCAL CALL VOLUME THE COMPANY'S THIRDQUARTER NET INCOME ROSE 32 TO 168 BILLION PESOS REVENUE ROSE 33 TO 58 BILLION PESOS INTERNATIONAL CALLS WHICH ACCOUNT FOR 78 OF REVENUE BENEFITED FROM THE DEPRECIATION OF THE PESO AGAINST THE DOLLAR WHICH STOOD AT 2934 PESOS AT THE END OF THE THIRD QUARTER AND 2729 PESOS AT THE END OF THE SECOND QUARTER CALL VOLUME IMPOVED AS THE COMPANY STARTED TO INSTALL TELEPHONE LINES UNDER A PROGRAM TO INSTALL ABOUT 957000 NEW LINES FROM 1993 TO 1996 9311080141 931108 LA QUINTA UNIT EXTENDS OFFER SAN ANTONIO TEXAS LA QUINTA INNS INC SAID ITS LQI ACQUISITION CORP UNIT EXTENDED ITS TENDER OFFER TO PURCHASE ALL THE LIMITEDPARTNERSHIP UNITS OF LA QUINTA MOTOR INNS LP THAT IT DOESN'T OWN TO MIDNIGHT NOV 30 THE EXTENSION TO BUY THE 35 MILLION UNITS WAS MADE SO THE OFFER WOULD BE OPEN FOR A MINIMUM OF 2S REQUIRED BY THE SECURITIES AND EXCHANGE COMMISSION THE OFFER WAS TO CLOSE NOV 29 AS OF THURSDAY NO UNITS HAD BEEN TENDERED IN RESPONSE TO THE OFFER WHICH WAS 13 A UNIT THE COMPANY SAID 9311080140 931108 MARKETING & MEDIA CAPITAL MARKET SUES REUTERS UNIT ALLEGING BREACH OF CONTRACT STAMFORD CONN CAPITAL MARKET DECISIONS INC SAID IT SUED REUTERS INFORMATION SYSTEMS INC ALLEGING BREACH OF CONTRACT AND OTHER IMPROPRIETIES CAPITAL WHICH SOLD TO REUTERS SYSTEMS AND SOFTWARE FOR ANALYZING FINANCIAL DATA SAID IT CHARGED IN A NEW YORK STATE COURT THAT THE REUTERS HOLDINGS PLC UNIT HAD TRIED TO BREAK A CONTRACT REQUIRING THE NEWS SERVICE TO PAY ROYALTIES ON THE SYSTEMS THROUGH JUNE 1999 CAPITAL ALSO ALLEGED THAT REUTERS HAS INTENTIONALLY DISRUPTED CAPITAL'S BUSINESS AND HIRED AWAY CAPITAL WORKERS TO DEVELOP ROYALTYFREE SYSTEMS CAPITAL SAID IT SEEKS 30 MILLION IN DAMAGES THROUGH ARBITRATION IT SAID IT FILED THE SUIT TO OBTAIN A PRELIMINARY INJUNCTION TO STAVE OFF FINANCIAL RUIN PENDING THE OUTCOME OF THE DISPUTE A REUTERS SPOKESMAN SAID CAPITAL HAD BEEN HIRED AS A CONSULTANT TO ASSIST IN DEVELOPMENT OF A PRODUCT CALLED REUTER DECISION 2000 UNDER A CONTRACT DUE TO TERMINATE WITHIN 14 MONTHS HE SAID REUTERS HAS BEEN TRYING TO RENEGOTIATE THE TERMS OF THE RELATIONSHIP BUT HASN'T TERMINATED THE AGREEMENT UNILATERALLY HE SAID THAT CAPITAL TOOK THE MATTER TO ARBITRATION ON OCT 21 AND THAT REUTERS FILED A COUNTERCLAIM ON FRIDAY WITH THE AMERICAN ARBITRATION ASSOCIATION OUR POSITION REMAINS THAT THIS IS A DISPUTE THAT SHOULD BE SETTLED BETWEEN THE PARTIES OR BY ARBITRATION REUTERS SAID 9311080139 931108 THAILAND MAY BE NEARING A SOLUTION TO DISPUTE OVER 800 MILLION TOLL ROAD BY CYNTHIA OWENS STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK THE THAI GOVERNMENT MAY FINALLY BE NEARING A SOLUTION TO THE LONGFESTERING DISPUTE OVER A NEW 800 MILLION EXPRESSWAY HERE A GOVERNMENT OFFICIAL SAID FRIDAY THAT THREE THAI COMPANIES HAVE EXPRESSED INTEREST IN BUYING KUMAGAI GUMI CO'S 65 STAKE IN BANGKOK EXPRESSWAY CO LTD OR BECL THE DEVELOPER OF THE TOLL ROAD DESIGNED TO HELP UNCLOG THE CITY'S CONGESTED STREETS PROPERTY DEVELOPERS BANGKOK LAND PCL AND BAN CHANG CO AND CONSTRUCTION COMPANY CH KARNCHANG CO HAVE EACH CONTACTED DEPUTY PRIME MINISTER AMNUAY VIRAVAN ABOUT BIDDING FOR A STAKE IN BECL AND OTHER BIDDERS MAY EMERGE THE OFFICIAL SAID THE THREE COMPANIES DECLINED TO COMMENT DR AMNUAY TOLD REPORTERS LAST WEEK THAT HE HOPED TO HAVE AN ANNOUNCEMENT ABOUT A BUYER OR CONSORTIUM OF BUYERS WITHIN A WEEK OR TWO DR AMNUAY IS TRYING TO BROKER A DEAL AS A WAY OUT OF THE STALEMATE BETWEEN JAPANESE CONSTRUCTION GIANT KUMAGAI GUMI AND THE EXPRESSWAY AND RAPID TRANSIT AUTHORITY OF THAILAND KNOWN AS THE ETA A 20KILOMETER SEGMENT OF THE TOLL ROAD WAS COMPLETED IN APRIL BUT DISAGREEMENTS OVER FINANCING AND PROFIT SHARING PREVENTED THE ROAD FROM OPENING UNTIL SEPTEMBER WHEN THE GOVERNMENT OBTAINED A COURT ORDER FORCING BECL TO OPEN IT THE ETA AND BECL REMAIN FAR APART ON THE FINANCING AND PROFITSHARING ISSUES THE DISPUTE IS HOLDING UP CONSTRUCTION OF THE REMAINING PORTION OF THE EXPRESSWAY AND BIDDING ON A THIRD STAGE OF THE ROAD THE DISAGREEMENT ALSO HAS SLOWED OTHER INFRASTRUCTURE PROJECTS AND MADE SOME FOREIGNERS WARY ABOUT INVESTMENTS IN THAILAND AN EXECUTIVE INVOLVED IN THE TALKS SAID KUMAGAI GUMI WANTS TO FIND A WAY OUT OF ITS REMAINING 27YEAR COMMITMENT TO THE PROJECT BECAUSE THE ISSUES HAVE BECOME MIRED IN POLITICS THE COMPANY ACCUSED THE ETA OF NATIONALIZING THE PROJECT WHEN THE ROAD WAS FORCED OPEN BY THE COURT ORDER FRUSTRATED BY A LACK OF PROGRESS TOWARD A SOLUTION KUMAGAI GUMI SEVERAL WEEKS AGO SUGGESTED SELLING ITS SHARE TO THE GOVERNMENT FINANCE MINISTER TARRIN NIMMANHAEMINDA RULED OUT THAT OPTION OUR POLICY IS CLEAR HE TOLD REPORTERS AFTER A CABINET MEETING LAST WEEK ALL THREE POTENTIAL BIDDERS ARE LISTED ON THE STOCK EXCHANGE OF THAILAND BANGKOK LAND IS THAILAND'S LARGEST REALESTATE COMPANY AND ITS HUGE MUANG THONG THANI DEVELOPMENT IS NEAR ONE END OF THE EXPRESSWAY THE COMPANY'S CHIEF EXECUTIVE OFFICER ANANT KANJANAPAS LAST WEEK DISCLOSED PLANS TO BID ON A PROPOSED MASS TRANSIT RAIL PROJECT AND THE COMPANY MIGHT BE ABLE TO INTERTWINE DEVELOPMENT OF THE EXPRESSWAY AND THE RAIL SYSTEM CH KARNCHANG ALREADY HOLDS ABOUT 5 OF BECL BAN CHANG A RAPIDLY GROWING PROPERTY COMPANY MIGHT BENEFIT FROM REALESTATE DEVELOPMENT NEAR MAJOR EXITS FROM THE EXPRESSWAY INVESTMENT ANALYSTS SAY RESOLVING THE DISPUTE BETWEEN BECL AND THE ETA WOULD TAKE SOME PRESSURE OFF THE GOVERNMENT WHICH HAS BEEN CRITICIZED AS INDECISIVE ON THIS ISSUE AND OTHERS IT ALSO WOULD ALLOW OTHER INFRASTRUCTURE PROJECTS TO GO AHEAD UNHINDERED FUNDING FOR ANOTHER 800 MILLION PROJECT A 20KILOMETER ABOVEGROUND RAIL SYSTEM TO BE BUILT BY PROPERTY DEVELOPER TANAYONG CO UNDER A CONTRACT WITH THE BANGKOK METROPOLITAN AUTHORITY IS ON HOLD UNTIL THE BECL DISPUTE IS SETTLED IN ADDITION THE PERCEPTION THAT THE ETA WANTED TO CHANGE THE BECL CONTRACT AFTER THE PROJECT WAS COMPLETED HAS MADE SOME FOREIGN INVESTORS AND BANKERS NERVOUS ABOUT BIDDING FOR THAI PROJECTS THIS SITUATION GIVES JAPANESE INVESTORS A BAD IMPRESSION SAID YOSHIKI HADA SECRETARYGENERAL OF THE JAPANESE CHAMBER OF COMMERCE IN BANGKOK DESPITE KUMAGAI GUMI'S TROUBLES ANOTHER JAPANESE CONSTRUCTION COMPANY OBAYASHI CO REMAINS INTERESTED IN BUILDING A PROPOSED THIRD STAGE OF THE EXPRESSWAY TO CONNECT THE FIRST TWO SECTIONS AND FORM A LOOP AROUND CENTRAL BANGKOK OBAYASHI WOULD PARTICIPATE IN THE PROJECT THROUGH A JOINT VENTURE WITH ITALTHAI DEVELOPMENT CO 9311080138 931108 PEPPERAND SALT HOW IS IT NOTHING SEEMS TO IRK IT'S THEIR ESPRIT DE CARE SEEING SPECIALISTS OF EVERY TYPE 9311080137 931108 BUSINESS BRIEF ESQUIRE RADIO & ELECTRONICS INC DIRECTORS CLEAR TENDER OFFER FOR 31 OF COMPANY'S SHARES ESQUIRE RADIO & ELECTRONICS INC DIRECTORS APPROVED A TENDER OFFER FOR AS MANY AS 150000 COMMON SHARES OR ABOUT 31 OF SHARES OUTSTANDING AT 47 EACH UPON COMPLETION OF THE OFFER EXPECTED TO START TOMORROW OR SOON AFTER THE TELECOMMUNICATIONSEQUIPMENT CONCERN PLANS A 2FOR1 STOCK SPLIT ESQUIRE SAID IT WOULDN'T MAKE RECOMMENDATIONS TO STOCKHOLDERS AS TO WHETHER THEY SHOULD TENDER SHARES THE COMPANY ALSO SAID THE LIEBERMAN FAMILY OWNER OF ABOUT 170000 OF THE 483000 SHARES OUTSTANDING AS OF SEPT 30 DOESN'T INTEND TO TENDER SHARES DURING THE OFFER ESQUIRE SHARES CLOSED AT 4075 UNCHANGED IN COMPOSITE AMERICAN STOCK EXCHANGE TRADING FRIDAY 9311080136 931108 ARJO WIGGINS SALES CLIMB LONDON ARJO WIGGINS APPLETON PLC AN ANGLOFRENCH PAPER AND PACKAGING GROUP SAID SALES FOR THE FIRST NINE MONTHS OF 1993 TOTALED 207 BILLION 307 BILLION UP 87 FROM 190 BILLION A YEAR EARLIER THIRDQUARTER SALES ROSE 56 TO 6359 MILLION FROM 6019 MILLION 9311080135 931108 PROPERTY TRUST BUYS OR PLANS TO BUY SITES TOTALING 2698 MILLION EL PASO TEXAS PROPERTY TRUST OF AMERICA A REALESTATE INVESTMENT TRUST SAID IT HAS PURCHASED AND HAS UNDER CONTRACT TO BUY 2698 MILLION IN NEW MULTIFAMILY PROPERTIES THE COMPANY SAID IT USED THE PROCEEDS OF ITS 1657 MILLION RIGHTS AND SHELF OFFERING COMPLETED IN SEPTEMBER AND DREW AGAINST A NEW 200 MILLION REVOLVING LINE OF CREDIT TO MAKE THE PURCHASES THE COMPANY ACQUIRED SIX MULTIFAMILY PROPERTIES WITH 1809 UNITS FOR 599 MILLION IN FOUR SOUTHWESTERN CITIES IN ADDITION IT HAS 6126 UNITS UNDER CONTRACT VALUED AT 2099 MILLION PROPERTY TRUST ALSO SAID ITS LONGTERM DEBT AS A PERCENTAGE OF TOTAL CAPITAL HAS DECREASED TO 5 AS OF OCTOBER 1993 FROM 47 IN DECEMBER 1990 THE COMPANY PLANS TO ARRANGE A NEW 20YEAR FIXEDRATE NONRECOURSE DEBT IN THE FIRST QUARTER OF NEXT YEAR WHICH IT WILL USE TO REPAY FUTURE BORROWINGS AND INVEST IN ADDITIONAL PROPERTIES 9311080134 931108 BUSINESS BRIEF CENTOCOR INC WELLCOME PLC TO ACQUIRE NEARLY 5 FOR 20 MILLION CENTOCOR INC MALVERN PA SAID IT REACHED A DEFINITIVE AGREEMENT TO FORM AN ALLIANCE WITH WELLCOME PLC THAT CALLS FOR THE BRITISH CONCERN TO ACQUIRE A NEARLY 5 STAKE IN CENTOCOR FOR 20 MILLION UNDER THE AGREEMENT WELLCOME A PHARMACEUTICAL CONCERN BASED IN LONDON WILL HELP FINANCE CENTOCOR'S DEVELOPMENT AND MARKETING OF CERTAIN MONOCLONAL ANTIBODYBASED CANCERFIGHTING DRUGS SUCH AS PANOREX WELLCOME WILL THEN MARKET AND SELL ANY APPROVED DRUGS IN MOST PARTS OF THE WORLD IN ADDITION WELLCOME WILL PAY 10 MILLION AT THE CLOSING AND MAY MAKE CERTAIN FUTURE PAYMENTS UP TO 70 MILLION CENTOCOR IS A BIOTECHNOLOGY CONCERN 9311080133 931108 DOW CHEMICAL CORP AMOCO SEE BIG GAINS ON SALE OF VENTURE CHICAGO AMOCO CORP AND DOW CHEMICAL CO SAID THEY EXPECT TO REPORT BIG FOURTHQUARTER GAINS FROM THE SALE OF STOCK IN A CANADIAN JOINT VENTURE THE SUBSIDIARY CRESTAR ENERGY INC BASED IN CALGARY ALBERTA IS A 5050 JOINT VENTURE BETWEEN AMOCO AND DOW CHEMICAL BUT INTENDS TO GO PUBLIC SHORTLY CHICAGOBASED AMOCO REDUCED ITS HOLDINGS TO 175 BY SELLING THE BULK OF ITS STAKE TO CRESTAR AND WILL RECORD A PRETAX GAIN OF 120 MILLION ON THE SALE IN THE 1992 FOURTH QUARTER AMOCO HAD NET INCOME OF 548 MILLION OR 110 A SHARE ON REVENUE OF 724 BILLION DOW CHEMICAL BASED IN MIDLAND MICH SAID IT EXPECTS TO RECORD A 100 MILLION GAIN FROM ITS DOW CHEMICAL CANADA UNIT'S REDEMPTION OF A PORTION OF ITS CRESTAR HOLDING IT TOO WILL SEE ITS STAKE REDUCED TO 175 DOW CHEMICAL REPORTED A LOSS OF 248 MILLION OR 183 A SHARE IN THE 1992 FOURTH QUARTER REFLECTING PRETAX CHARGES OF 433 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY AMOCO CLOSED AT 54875 UP 375 CENTS WHILE DOW CHEMICAL FINISHED AT 5425 DOWN 25 CENTS 9311080132 931108 INTERNATIONAL SHISEIDO OFFICES SEARCHED IN DISCOUNTSALES INQUIRY TOKYO KYODO JAPAN'S FAIR TRADE COMMISSION SEARCHED THE HEADQUARTERS OF SHISEIDO CO IN TOYKO AND NINE AFFILIATED SALES COMPANIES ACROSS THE NATION SEARCHING FOR EVIDENCE THAT SHISEIDO ILLEGALLY BLOCKED DISCOUNT SALES OF COSMETICS BY RETAILERS IN MIDSEPTEMBER THE GOVERNMENT WATCHDOG BODY SEARCHED THREE SALES COMPANIES AFFILIATED WITH SHISEIDO JAPAN'S LARGEST COSMETICS COMPANY FOR ALLEGEDLY VIOLATING THE FAIRTRADE LAW BY CANCELING CONTRACTS WITH AND BLOCKING SUPPLY SHIPMENTS TO KAWACHIYA LTD A TOKYOBASED DISCOUNT STORE CHAIN IN JULY KAWACHIYA FILED A COMPLAINT WITH THE FTC AGAINST SHISEIDO KANEBO LTD AND KAO CORP ACCUSING THEM OF TRYING TO PREVENT KAWACHIYA FROM SELLING THEIR COSMETICS AT DISCOUNTED PRICES KAWACHIYA BEGAN SELLING COSMETICS AT 20 TO 30 DISCOUNT IN EIGHT SHOPS IN TOKYO AND CHIBA PREFECTURE IN JUNE SHISEIDO HAS ASSERTED THAT IT STOPPED SHIPMENTS TO KAWACHIYA BECAUSE THE DISCOUNT CHAIN ILLEGALLY SOLD SHISEIDOMADE COSMETICS ON THE BLACK MARKET UNDER A CHAINSTORE CONTRACT SHISEIDO REQUIRES RETAIL SHOPS TO SELL ITS PRODUCTS OVER THE COUNTER USING SHISEIDO EMPLOYEES THE FTC SAID IT SUSPECTS THIS SYSTEM FORCES RETAILERS TO MAINTAIN THE MANUFACTURER'S SUGGESTED PRICES IN VIOLATION OF THE ANTIMONOPOLY LAW SHISEIDO INSISTS ITS POLICY IS WITHIN THE LAW BUT DID SAY THAT IT WOULD REVIEW ITS CONTROVERSIAL CONTRACT WITH CHAIN STORES 9311080130 931108 NATTEM USA BUYS CASINO SITE DALLAS NATTEM USA INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE A 23ACRE CASINO SITE IN BAY ST LOUIS MISS FOR A SELLERFINANCED PURCHASE PRICE OF 55 MILLION THE SITE IS ADJACENT TO THE MULTIMILLIONDOLLAR CASINO MAGIC CORP FACILITY IN BAY ST LOUIS 9311080129 931108 CHRYSLER EXPECTS 10 RISE IN VEHICLE SALES NEXT YEAR HIGHLAND PARK MICH CHRYSLER CORP WHICH HAS SEEN ITS VEHICLE SALES JUMP 22 SO FAR THIS YEAR SAID IT EXPECTS AN INCREASE OF ALMOST 10 NEXT YEAR E THOMAS PAPPERT VICE PRESIDENT FOR SALES SAID CHRYSLER WILL SELL 22 MILLION VEHICLES IN THE US NEXT YEAR UP FROM A LITTLE MORE THAN TWO MILLION EXPECTED TO BE SOLD BY THE END OF 1993 OF THOSE TWO MILLION VEHICLES 1350000 WILL BE LIGHT TRUCKS MR PAPPERT SAID AN INDUSTRYWIDE UPSWING WILL AID CHRYSLER SALES NEXT YEAR AS WILL NEW MODELS INCLUDING THE DODGE RAM PICKUP HE SAID IN 1992 CHRYSLER SOLD ONLY 80000 FULLSIZE PICKUPS BUT SINCE IT INTRODUCED ITS NEW RAM LAST MONTH IT HAS RECEIVED ORDERS FOR 125000 TRUCKS SALES OF THE PICKUP NEXT YEAR COULD HIT 260000 TRUCKS UP SHARPLY FROM INITIAL ESTIMATES OF 225000 TRUCKS SAID MR PAPPERT WHO'S ALREADY PROCLAIMING THE NEW TRUCK A HIT MOREOVER THE JAN 1 LAUNCH OF THE NEW NEON SMALL CAR IS EXPECTED TO BOOST SALES NEXT YEAR CHRYSLER PLANS TO BUILD 5000 NEONS BEFORE THE CAR GOES ON SALE AND TO BUILD AN ADDITIONAL 44000 IN THE FIRST QUARTER OF 1994 ONCE PRODUCTION IN ILLINOIS AND MEXICO IS IN FULL SWING CHRYSLER WILL HAVE THE CAPACITY TO BUILD MORE THAN 300000 NEONS A YEAR THE LEASTEXPENSIVE NEON WILL BE PRICED CLOSE TO 9000 AND THE TOPOFTHELINE VERSION WILL BE PRICED AT MORE THAN 12000 MR PAPPERT SAID 9311080128 931108 SEAGATE MAY EXPAND INTO SOFTWARE MARKET THROUGH ACQUISITIONS SAN FRANCISCO SEAGATE TECHNOLOGY PLANS TO EXPAND ITS CORE BUSINESS OF DISKDRIVE MANUFACTURING TO OTHER AREAS INCLUDING SOFTWARE DEVELOPMENT ALAN F SHUGART CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE SCOTTS VALLEY CALIF CONCERN IS A MAJOR PLAYER IN THE MARKET FOR HIGHPERFORMANCE DISK DRIVES AND HAS MANAGED TO REMAIN PROFITABLE IN A PRICING WAR THAT HAS SAVAGED COMPETITORS MR SHUGART SAID SEAGATE WANTS TO BROADEN ITS TECHNOLOGY BASE AS PART OF A GOAL TO DOUBLE THE CURRENT 3 BILLION IN ANNUAL REVENUE BY THE YEAR 2000 I PLAN TO EXPAND SOFTWARE REVENUE WHICH IS CURRENTLY ZERO TO 1 BILLION BY THE END OF THE DECADE HE SAID THE COMPANY WITH MORE THAN 700 MILLION IN CASH ON HAND IS LOOKING TO EXPAND THROUGH ACQUISITIONS NOW IS THE OPPORTUNE TIME BECAUSE WE THINK WE WILL BE ONE OF THE FEW COMPANIES TO BE ABLE TO DO THIS MR SHUGART SAID STEPHEN J LUCZO SENIOR VICE PRESIDENT OF CORPORATE DEVELOPMENT SAID SEAGATE HAS TARGETED ABOUT A DOZEN COMPANIES FOR POSSIBLE ACQUISITION HE DECLINED TO NAME THOSE COMPANIES BUT SAID THEY RANGE IN SIZE FROM ABOUT 10 MILLION TO 200 MILLION IN ANNUAL REVENUE AND INCLUDE SOME SOFTWARE CONCERNS MR SHUGART SAID SEAGATE PROBABLY WOULD CONCENTRATE ON DEVELOPING DATAMANAGEMENT SOFTWARE BEFORE BRANCHING INTO OTHER SOFTWARE AREAS HE SUGGESTED THAT PRICES IN THE DISKDRIVE INDUSTRY WOULD REMAIN LOW IN THE FORSEEABLE FUTURE AND SAID STRONG DEMAND FOR LOWEREND PERSONAL COMPUTERS HAS RESULTED IN SEAGATE BEING UNABLE TO FILL SOME ORDERS IMMEDIATELY 9311080127 931108 BUSINESS BRIEF WEST COAST BANCORP THIRDPERIOD LOSS IS POSTED SECOND QUARTER'S IS WIDENED WEST COAST BANCORP REPORTED LOSSES FOR BOTH ITS THIRD QUARTER AND NINE MONTHS AND SAID REGULATORS REQUIRED A UNIT TO TAKE ADDITIONAL LOANLOSS RESERVES NEARLY DOUBLING ITS SECONDQUARTER LOSS THE NEWPORT BEACH CALIF BANK HOLDING COMPANY SAID IT AND ITS LARGEST UNIT SUNWEST BANK HAVE FALLEN BELOW THE 8 LEGAL MINIMUM FOR RISKBASED CAPITAL WEST COAST BANCORP WITH ASSETS OF 3244 MILLION SAID ITS THIRDQUARTER NET LOSS WAS 25 MILLION OR 27 CENTS A SHARE IN THE YEAREARLIER PERIOD IT HAD EARNINGS OF 12 MILLION OR 13 CENTS A SHARE THE NINEMONTH LOSS WAS 9 MILLION OR 98 CENTS A SHARE YEAREARLIER NET LOSS WAS 127000 OR ONE CENT A SHARE THE NINEMONTH RESULT REFLECTS A SECONDQUARTER NET LOSS OF 51 MILLION OR 55 CENTS A SHARE RESTATED FROM A 26 MILLION 28 CENTSPERSHARE LOSS EARLIER REPORTED 9311080126 931108 BAT SAYS LOSSES FROM CALIFORNIA FIRES ARE NOW 58 MILLION SPECIAL TO THE WALL STREET JOURNAL LONDON BA T INDUSTRIES PLC THE TOBACCO AND FINANCIALSERVICES GROUP BASED IN BRITAIN SAID LOSSES ARISING FROM INSURANCE CLAIMS CAUSED BY THE FIRES IN CALIFORNIA THUS FAR AMOUNT TO 58 MILLION BAT'S US INSURANCE SUBSIDIARY FARMERS INSURANCE DOESN'T HAVE A GREAT DEAL OF BUSINESS IN MALIBU IT'S MORE A MAINSTREETAMERICA COMPANY THAN HOMESOFSTARS SAID A SPOKESMAN FOR THE COMPANY FIRES HAVE RAGED ACROSS SOUTHERN CALIFORNIA WITH THE LATEST CASUALTY BEING THE MULTIMILLIONDOLLAR HOMES OF MOVIE STARS IN MALIBU HE SAID LOSSES ARISING FROM CLAIMS THUS FAR AMOUNT TO 58 MILLION BUT IT WAS DIFFICULT TO PREDICT HOW HIGH THE FINAL FIGURE WOULD BE LAST WEEK WHEN BA T ANNOUNCED THIRDQUARTER EARNINGS CHIEF EXECUTIVE MARTIN BROUGHTON SAID THAT PROJECTED LOSSES BASED ON CLAIMS RECEIVED UP TILL THEN WERE ABOUT 80 MILLION ON FRIDAY THE SPOKESMAN SAID THERE WAS NO REASON TO BELIEVE THE FINAL FIGURE WOULD BE MUCH DIFFERENT FROM THAT PROJECTION THE 58 MILLION FIGURE COMPARES WITH A 130 MILLION LOSS THAT THE COMPANY EXPERIENCED BECAUSE OF THE OAKLAND CALIF FIRES THE SPOKESMAN SAID HE ALSO ADDED THAT THE LOSSES DON'T ACTUALLY HIT FARMERS INSURANCE DIRECTLY BUT RATHER AFFECT THE ASSOCIATED UNDERWRITING EXCHANGES 9311080125 931108 FORD CHRYSLER MOVE TO CORRECT GLITCHES IN TWO NEW PRODUCTS DETROIT FORD MOTOR CO AND CHRYSLER CORP ARE BOTH SCRAMBLING TO CORRECT QUALITY GLITCHES IN KEY NEW PRODUCTS FORD HALTED PRODUCTION OF ITS HIGHLY TOUTED 1994 MUSTANG SPORTS CAR FOR A DAY AFTER DISCOVERING A BAD WELD IN THE WIRING HARNESS THE BUNDLE OF WIRES THAT CARRY A CAR'S ELECTRICAL POWER AND SIGNALS THE SHUTDOWN COST FORD FEWER THAN 200 CARS ACCORDING TO A FORD SPOKESMAN WHO SAID THE LOST PRODUCTION WOULD BE MADE UP LATER IN ADDITION FORD IS REPLACING HARNESSES IN ABOUT 1800 CARS THAT WERE ALREADY ASSEMBLED ACCORDING TO MARCEL JOSEPH CHIEF EXECUTIVE OFFICER OF AUGAT INC OF MANSFIELD MASS WHICH SUPPLIED THE MUSTANG HARNESSES THE MUSTANG IS SCHEDULED TO GO ON SALE NEXT MONTH NO MUSTANGS WERE SHIPPED WITH DEFECTIVE WIRING HARNESSES THE FORD SPOKESMAN SAID MEANWHILE CHRYSLER IS RECALLING 2000 1994 DODGE RAM PICKUP TRUCKS AND ASKING DEALERS TO CHECK THAT A BOLT ON THE FRONT SUSPENSION TRACK BAR OF SOME FOURWHEELDRIVE PICKUPS IS PROPERLY TIGHTENED THE 1994 RAM DODGE'S FULLSIZE PICKUP TRUCK WENT ON SALE THIS FALL CHRYSLER SAID THE BOLT HELPS ATTACH THE FRONT SUSPENSION TRACK BAR TO THE FRONT AXLE THE COMPANY SAID IT IS CONCERNED THAT A LOOSE BOLT COULD ALLOW THE TRACK BAR TO DISENGAGE CAUSING FRONT AXLE VIBRATION AND MAKING STEERING CONTROL DIFFICULT CHRYSLER SAID AN ESTIMATED 4000 TRUCKS PRODUCED BEFORE SEPT 25 NEED TO BE INSPECTED ABOUT 2000 TRUCKS WITH SUSPECT BOLTS HAVE BEEN SOLD CHRYSLER SAID IT IS UNAWARE OF ANY ACCIDENTS STEMMING FROM THE DEFECT 9311080124 931108 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT THREE AND SIXMONTH BILLS AMERISTAR CASINOS INC INITIAL 24 MILLION SHARES VIA MONTGOMERY SECURITIES ASSOCIATED ESTATES REALTY CORP INITIAL 73 MILLION SHARES VIA DEAN WITTER REYNOLDS INC AVALON PROPERTIES INITIAL 195 MILLION SHARES VIA KIDDER PEABODY & CO BENTON OIL & GAS CO 7 MILLION SHARES VIA SALOMON BROTHERS INC BLOCKBUSTER ENTERTAINMENT CORP 127 MILLION SHARES VIA MERRILL LYNCH & CO BOSTON CHICKEN INC INITIAL 16 MILLION SHARES VIA MERRILL LYNCH CASINO AMERICA 100 MILLION OF NINEYEAR FIRST MORTGAGE BONDS VIA SALOMON COCACOLA BOTTLING SOUTHWEST 140 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA CITICORP SECURITIES CO CHATEAU PROPERTIES INC INITIAL 57 MILLION SHARES VIA MERRILL LYNCH ETHAN ALLEN INTERIORS INC 14 MILLION SHARES VIA KIDDER PEABODY LANDAIR SERVICES INC INITIAL 2 MILLION SHARES VIA ALEX BROWN & SONS INC LTV CORP 20 MILLION SHARES 17 MILLION OFFERED IN THE US VIA SALOMON LOUIS DREYFUS NATURAL GAS CORP INITIAL 7 MILLION SHARES VIA MORGAN STANLEY & CO MERRY LAND & INVESTMENT CO 5 MILLION SHARES VIA ALEX BROWN METHANEX CORP 300 MILLION OF EIGHTYEAR SENIOR SECURED NOTES VIA CS FIRST BOSTON NAVISTAR FINANCIAL CORP 100 MILLION OF FIVEYEAR SENIOR SUBORDINATED NOTES VIA JP MORGAN SECURITIES NEWFIELD EXPLORATION CO INITIAL 31 MILLION SHARES VIA GOLDMAN SACHS & CO PETSTUFF INC INITIAL 25 MILLION SHARES VIA KIDDER PEABODY PURUS INC INITIAL 18 MILLION SHARES VIA OPPENHEIMER & CO QUAKER FABRIC CORP INITIAL 21 MILLION SHARES VIA SMITH BARNEY SHEARSON INC TEXAS BOTTLING GROUP INC 125 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA CITICORP SECURITIES TOMMY HILFIGER CORP 44 MILLION SHARES 23 MILLION OFFERED BY THE COMPANY VIA LEHMAN BROTHERS TRIDENT NGL HOLDING INC INITIAL 4 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP URBAN OUTFITTERS INC INITIAL 16 MILLION SHARES VIA SMITH BARNEY SHEARSON WESTERN MINING CORP HOLDINGS LTD 400 MILLION TWOTRANCHE OFFERING VIA GOLDMAN SACHS VESTA INSURANCE GROUP INC 92 MILLION SHARES VIA MORGAN STANLEY ZENECA PLC 300 MILLION OF 30YEAR DEBT VIA GOLDMAN SACHS WASHINGTON SUBURBAN SANITARY DISTRICT MD 3259 MILLION OF VARIOUS SERIES 1993 BONDS VIA COMPETITIVE BID NEW YORK CITY MUNICIPAL WATER FINANCE AUTHORITY 750 MILLION OF WATER AND SEWER REVENUEREFUNDING BONDS VIA A SMITH BARNEY SHEARSON GROUP CALIFORNIA POLLUTION CONTROL FINANCING AUTHORITY 200 MILLION OF POLLUTIONCONTROL REVENUE BONDS VIA A GOLDMAN SACHS GROUP ILLINOIS HEALTH FACILITIES AUTHORITY 115 MILLION OF REVENUE BONDS VIA A GOLDMAN SACHS GROUP 9311080123 931108 RELIANCE GROUP OFFERINGS NEW YORK RELIANCE GROUP HOLDINGS INC SAID ITS PUBLIC OFFERING OF 25 MILLION COMMON SHARES AND 650 MILLION OF DEBT CAME TO MARKET FRIDAY NET PROCEEDS TOTAL 8215 MILLION WHICH WILL BE USED TO REDEEM EXISTING DEBT OF RELIANCE AND ITS UNITS DONALDSON LUFKIN & JENRETTE SECURITIES CORP IS THE LEAD UNDERWRITER FOR THE OFFERINGS RELIANCE AN INSURANCE HOLDING COMPANY SAID THE 25 MILLION SHARES ARE BEING SOLD FOR 8 EACH AS OF SEPT 30 THE COMPANY HAD ABOUT 865 MILLION SHARES OUTSTANDING THE DEBT OFFERING CONSISTS OF 400 MILLION OF 9 SENIOR NOTES DUE 2000 AND 250 MILLION OF 975 SENIOR SUBORDINATED DEBENTURES DUE 2003 9311080122 931108 INTERNATIONAL BRIEF GRUPO FINANCIERO BANCOMER MEXICAN CONCERN POSTS RISE OF 24 IN QUARTERLY PROFIT MEXICAN BANKING GROUP GRUPO FINANCIERO BANCOMER SAID IT POSTED A PROFIT OF 499 MILLION NEW PESOS 1603 MILLION IN THE THIRD QUARTER UP 24 FROM 4034 MILLION NEW PESOS IN THE 1992 PERIOD THE GROUP INCLUDES BANCOMER SA MEXICO'S LARGEST BANK IN TERMS OF TOTAL DEPOSITS WE'RE SATISFIED WITH THE RESULTS WE'VE BEEN ABLE TO ACHIEVE IN SPITE OF THE DIFFICULT ECONOMIC REALITY OF THE LAST 12 MONTHS SAID RICARDO GUAJARDO TOUCHE THE GROUP'S GENERAL DIRECTOR BANCOMER SAID CREDIT GROWTH IN THE THIRD QUARTER WAS MODERATE OWING TO A CONTINUING PROGRAM OF IMPROVING ASSET QUALITY CREDITS GREW ONLY 05 IN THE PERIOD AND 31 FOR THE FIRST NINE MONTHS OF THE YEAR BANCOMER DIDN'T PROVIDE A FIGURE FOR TOTAL OUTSTANDING CREDIT 9311080121 931108 JAPANESE SHIPPERS POST WEAK RESULTS DUE TO STRONG YEN SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S THREE BIGGEST SHIPPING COMPANIES WERE HAMMERED BY THE YEN'S APPRECIATION IN THE SIX MONTHS ENDED SEPT 30 EVIDENCE OF THEIR RELIANCE ON DOLLARDENOMINATED INCOME THE COMPANIES ALSO BLAMED THE YEN'S RAPID ADVANCE FOR STRANGLING JAPANESE EXPORTS AND SHRINKING THE VOLUME OF CARGO ON OUTGOING VESSELS FROM JAPANESE PORTS THEY ESPECIALLY NOTED SUCH AREAS AS MOTOR VEHICLES AND OTHER MACHINERY AS MANUFACTURERS FOUND THEIR PRICE COMPETITIVENESS OVERSEAS SUDDENLY UNDERMINED BY THE YEN'S CLIMB THE SHIPPERS NIPPON YUSEN KK MITSUI OSK LINES LTD AND KAWASAKI KISEN KAISHA LTD ALSO ISSUED DOWNWARDLY REVISED EARNINGS ESTIMATES FOR THE FULL FISCAL YEAR THAT ENDS MARCH 31 1994 NIPPON YUSEN JAPAN'S BIGGEST SHIPPING COMPANY SAID PRETAX PROFIT PLUNGED 49 TO 362 BILLION YEN 335 MILLION FROM 705 BILLION YEN A YEAR EARLIER BECAUSE OF CURRENCYRELATED SHRINKAGE IN REVENUE AND SLUGGISH WORLDWIDE ECONOMIC ACTIVITY NIPPON YUSEN ALSO ISSUED A REVISED EARNINGS FORECASTS FOR YEAR ENDING NEXT MARCH SHOWING EXPECTATIONS FOR LOWER PRETAX PROFITS THAN HAD BEEN FORECAST IN MAY IT NOW EXPECTS PRETAX PROFIT TO TOTAL SEVEN BILLION YEN COMPARED WITH THE PREVIOUS EXPECTATIONS OF 13 BILLION YEN WHICH WAS ABOUT FLAT WITH YEAREARLIER RESULTS MITSUI OSK JAPAN'S SECONDLARGEST SHIPPER GOT AWAY WITH A 24 DECLINE IN PRETAX PROFIT BUT MITSUI OSK SAID THAT DESPITE THE STRONG YEN'S EFFECT IN RESTRAINING EXPORTS THE VOLUME OF IMPORTS DIDN'T PICK UP IN RESPONSE TO THE HEIGHTENED BUYING POWER OF THE JAPANESE CURRENCY SHOJI KITADE A COMPANY DIRECTOR SAID THE EFFECT OF THE STRONG YEN IN DAMPING DOMESTIC JAPANESE ECONOMIC ACTIVITY SMOTHERED CHANCES FOR HIGHER IMPORTS NEEDED TO OFFSET THE FALLOFF IN EXPORTS IN THE LATEST PERIOD MITSUI'S PRETAX PROFIT TOTALED 272 BILLION YEN DOWN FROM 357 BILLION YEN THE COMPANY ALSO SAID IT EXPECTS FULLYEAR PRETAX PROFIT TO REACH FIVE BILLION YEN COMPARED WITH A PREVIOUS FORECAST OF SIX BILLION YEN IN THE PREVIOUS FISCAL YEAR MITSUI HAD PRETAX PROFIT OF 78 BILLION YEN KAWASAKI KISEN MEANWHILE REPORTED ITS FIRST PRETAX LOSS SINCE THE SIX MONTHS ENDING IN SEPTEMBER 1988 KAWASAKI KISEN WITH THE LARGEST RELIANCE ON DOLLARDENOMINATED EARNINGS AMONG JAPAN'S THREE BIG SHIPPERS HAD A LOSS OF 141 BILLION YEN FOR THE LATEST HALF COMPARED WITH A YEAREARLIER PROFIT OF 559 MILLION YEN MITSUO IWASA A MANAGING DIRECTOR AT KAWASAKI KISEN SAID THE COMPANY WASN'T PLANNING TO SELL SHARES OR OTHERWISE USE FINANCIAL ASSETS TO DRESS UP EARNINGS AND AVOID A PRETAX LOSS FOR THE YEAR RATHER THE COMPANY IS REVIEWING OPERATIONS AND COSTCUTTING PLANS THAT SHOULD BRING PROFITS WITHIN SIGHT BY THE YEAR ENDING MARCH 1995 MR IWASA SAID FOR THE FULL YEAR KAWASAKI KISEN NOW EXPECTS A PRETAX LOSS OF THREE BILLION YEN COMPARED WITH A PRIOR FORECAST FOR A PROFIT OF 15 BILLION YEN 9311080120 931108 BUSINESS BRIEF VOLKSWAGEN AG AUDI LUXURYCAR UNIT SAYS IT WILL REPORT A LOSS FOR '93 GERMANY'S AUDI THE LUXURYCAR UNIT OF VOLKSWAGEN AG WILL POST A LOSS IN 1993 ACCORDING TO AUDI CHAIRMAN FRANZJOSEF KORTUEM MR KORTUEM DECLINED TO SPECIFY THE SIZE OF THE EXPECTED LOSS HOWEVER OTHER AUDI OFFICIALS DISMISSED REPORTS THAT IT WOULD TOTAL AS MUCH AS 300 MILLION MARKS 1769 MILLION AS WAS REPORTED BY MANAGER MAGAZINE A GERMAN BUSINESS PUBLICATION THE OTHER OFFICIALS DECLINED TO COMMENT ON WHETHER THE EXPECTED LOSS WOULD BE HIGHER OR LOWER THAN THAT FIGURE MR KORTUEM SAID IT WAS LIKELY THAT AUDI WOULD BREAK EVEN IN 1994 ALTHOUGH HE SAID HE COULDN'T GUARANTEE IT DURING 1994 AUDI WILL EMBARK ON A RESTRUCTURING PROGRAM IN WHICH IT WILL LAY OFF EMPLOYEES BUT MR KORTUEM SAID THE PROGRAM WOULDN'T BE AS SEVERE AS AT VW VW HAS SAID THAT 30000 OF THE COMPANY'S 103000 EMPLOYEES ARE SURPLUS 9311080117 931108 INSURANCE TO FILL 'ER UP' MAY SOON MEAN WITH PREMIUMS BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES IN TIMES PAST PEOPLE GOT COFFEE MUGS AND FREE CAR WASHES WHEN THEY FILLED THEIR TANKS NOW ANDREW TOBIAS VETERAN FINANCIAL WRITER AND COMPUTERPROGRAM AUTHOR SUGGESTS THAT WHEN PEOPLE PUMP GASOLINE THEY GET CAR INSURANCE A GROUP BACKED FINANCIALLY BY MR TOBIAS IS EXPECTED TO LAUNCH A CAMPAIGN TODAY FOR A CALIFORNIA VOTER INITIATIVE THAT WOULD CHANGE AUTO INSURANCE TO A SOCALLED PAYATTHEPUMP SYSTEM UNDER IT A SURCHARGE ON EACH GALLON OF GASOLINE WOULD COVER MOST AUTOINSURANCE PREMIUMS THE PROPOSAL ALSO WOULD ELIMINATE DRIVERS' RIGHTS TO SUE ONE ANOTHER EXCEPT IN SPECIAL CASES SUCH AS DRUNK DRIVING AND REQUIRE DETAILED REGULATION OF RATES WHETHER APPROVED BY VOTERS OR NOT THE INITIATIVE IN A STATE OF MORE THAN 17 MILLION CARS AND THEIR PREMIUMWEARY OWNERS IS EXPECTED TO SET OFF A BATTLE THAT COULD SPREAD TO OTHER STATES EVEN BEFORE THE OFFICIAL ANNOUNCEMENT OF THE PETITION DRIVE TO PLACE THE INITIATIVE ON THE BALLOT NEXT NOVEMBER THE INSURANCE INDUSTRY AND ALLIED INTERESTS HAVE CREATED A GROUP TO OPPOSE THE MEASURE THIS IS ONE PUPPY THAT'S GOING TO HAVE A LOT MORE OPPONENTS THAN JUST THE INSURANCE INDUSTRY SAYS RICHARD DINON A SENIOR VICE PRESIDENT OF 20TH CENTURY INDUSTRIES HOLDING COMPANY FOR ONE OF CALIFORNIA'S LARGEST AUTO INSURERS THAT'S TO BE EXPECTED THE PUCKISH MR TOBIAS NOTES BUT HE ADDS OUR GOAL IS TO TURN AN INSURANCE SYSTEM THAT'S A NATIONAL JOKE INTO A NATIONAL MODEL CRITICS HAVE LONG POINTED TO THE HIGH COSTS OF PROVIDING COVERAGE IN CALIFORNIA AND ELSEWHERE IN THIS LITIGIOUS STATE LEGAL FEES FOR ALL SIDES AS WELL AS PAINANDSUFFERING PAYMENTS RELATED TO AUTO ACCIDENTS COST AS MUCH AS ALL REPAIR AND REPLACEMENT OF DAMAGED VEHICLES IN CALIFORNIA MR TOBIAS SAYS MORE PREMIUM DOLLARS GO TO LAWYERS THAN DOCTORS AND HOSPITALS IF YOUR FACE IS BLEEDING YOU DON'T NEED A LAWYER YOU NEED A DOCTOR JUST HOW MUCH ATTENTION THE CALIFORNIA PROPOSAL GETS DEPENDS ON THE VOTERS IN CALIFORNIA VOTER INITIATIVES WITH SOLID FINANCIAL BACKING SUCH AS THIS ONE ARE ALMOST ASSURED OF GETTING THE ROUGHLY 600000 VALID SIGNATURES NEEDED TO QUALIFY THE PAYATTHEPUMP PROPOSAL IS SET OUT IN A 30PAGE MEASURE TO BE FILED WITH CALIFORNIA'S ATTORNEY GENERAL TODAY UNDER THE PROPOSAL ALL CALIFORNIA DRIVERS WOULD BE REQUIRED TO PAY 25 CENTS A GALLON AT THE PUMP AS THE PRINCIPAL INPUT TO A GIANT STATEADMINISTERED AUTOINSURANCE POOL THERE WOULD ALSO BE A CHARGE OF ABOUT 140 ADDED TO THE ANNUAL VEHICLEREGISTRATION FEE THOSE BASIC EXPENSES FOR GOOD DRIVERS WOULD MEAN SUBSTANTIAL SAVINGS OF 50 OR MORE FOR MANY URBAN DRIVERS BUT THEY COULD MEAN AN INCREASE FOR SOME RURAL RESIDENTS THE PROPOSED SYSTEM WHICH WOULD ELIMINATE THE HUGE PROBLEM OF UNINSURED MOTORISTS WOULD USE PRIVATE INSURERS AND CALIFORNIA CAR OWNERS WHO CURRENTLY SPEND ABOUT 115 BILLION A YEAR ON AUTO INSURANCE WOULD HAVE THE OPTION OF SPECIFYING A CARRIER THE ACTUAL INSURANCE PURCHASE WOULD BE MADE BY A STATE FUND AT RATES SET BY CALIFORNIA'S INSURANCE COMMISSIONER WHILE COMPANIES WOULD BE PAID DIFFERENT RATES FOR DRIVERS WITH VARYING RISKS DEPENDING ON AGE WHERE THEY LIVE AND OTHER FACTORS RATES FOR ANY GIVEN RISK WOULD BE SET AND CURRENT COMPETITION WOULD BE ELIMINATED THIS IS THE PART I HATE MR TOBIAS CONCEDES SO DO INSURANCE INTERESTS WHO MAKE NO SECRET OF THEIR DISMAY BECAUSE THIS IS A GAS TAX OR ADDON THE GOVERNMENT WILL BE UNDER PARTICULAR PRESSURE TO HOLD DOWN RATES ARGUES DAVID SNYDER ASSISTANT GENERAL COUNSEL FOR THE AMERICAN INSURANCE ASSOCIATION AN INDUSTRY GROUP IN 1988 IN A BLOODY BATTLE OVER AUTO INSURANCE CALIFORNIA VOTERS APPROVED MEASURES INTENDED TO SHARPLY ROLL BACK RATES AND MANDATE CHANGES IN THE WAY THEY WERE CALCULATED THE SOCALLED PROPOSITION 103 INDUSTRY OPPONENTS SPENT AN ESTIMATED 64 MILLION IN THAT CAMPAIGN BELIEVED TO BE ONE OF THE LARGEST OUTLAYS EVER FOR A STATE BALLOT OF ANY TYPE SUBSEQUENTLY INSURERS HAVE SPENT MILLIONS MORE ON UNSUCCESSFUL LEGAL EFFORTS TO HAVE THE MEASURES VOIDED ALTHOUGH VARIOUS OBJECTIONS CONTINUE TO OCCUPY CALIFORNIA COURTS FEARING A REPEAT OF VOTER SUPPORT FOR PROPOSITION 103 INSURERS AND THEIR ALLIES HAVE ORGANIZED EARLY HIRING SAN FRANCISCOBASED POLITICAL CONSULTANTS WOODWARD & MCDOWELL TO FORM CALIFORNIANS TO SAVE OUR ECONOMY A COUNTERINITIATIVE GROUP OPPOSITION WILL LEAN HEAVILY ON THE NOTION THAT INSURANCE PREMIUMS CHARGED AT THE PUMP REPRESENT A NEW TAX RATHER THAN A CHANGE IN THE FORM OF PAYMENT THIS ISN'T GOING TO BE CALLED PAYATTHEPUMP BUT PAINATTHEPUMP SAYS JOHN MILLEN A SPOKESMAN FOR FARMERS INSURANCE GROUP THE LARGEST CALIFORNIABASED WRITER OF AUTO INSURANCE IN THE STATE MR TOBIAS WHO SAYS HE PERSONALLY HAS PUT MONEY SIGNIFICANTLY INTO THE SIX FIGURES TO BACK THE INITIATIVE CAMPAIGN BELIEVES THAT CORPORATE INTERESTS OTHER THAN INSURANCE AND OIL COMPANIES WILL SIDE WITH HIM TAXI AND TRUCKFLEET OPERATORS HAVE INDICATED SUPPORT FOR THE MEASURE FOR INSTANCE NATIONWIDE LAST YEAR PRIVATE CAR OWNERS PAID 833 BILLION FOR AUTO INSURANCE ACCORDING TO ANALYSTS AM BEST CO IN 1991 COMMERCIAL OPERATORS PAID 21 BILLION COMMERCIAL VEHICLES WON'T PARTICIPATE IN THE INSURANCE POOL THAT IS PAID AT THE PUMP BUT COULD BENEFIT ENORMOUSLY FROM ELIMINATION OF LIABILITY CLAIMS THAT HAVE SOARED IN THE PAST DECADE THE PAYATTHEPUMP PROPOSAL IS EXPECTED TO GAIN THE SUPPORT OF CALIFORNIA INSURANCE COMMISSIONER JOHN GARAMENDI WHO HAS OFFICIALLY SAID HE WON'T ENDORSE THE PROPOSAL UNTIL HE HAS SEEN THE PLAN IN FINAL FORM EARLIER THIS YEAR HE SUPPORTED A LEGISLATIVE ATTEMPT FOR PAYATTHEPUMP INSURANCE AN EFFORT THAT WAS SWIFTLY STRUCK DOWN BY INDUSTRY INTERESTS NO SURPRISE THERE HE SAYS ADDING IF YOU WANT TO DO SOMETHING FOR CONSUMERS GIVE THEM LOWCOST AUTO INSURANCE ALL OF THE PIGS AT THE TROUGH ARE GOING TO HAVE TO TAKE A SMALLER FEED PORTION 9311080116 931108 TECHNOLOGY & MEDICINE 3DO HAD 7 MILLION LOSS IN 2ND PERIOD PLANS PUBLIC OFFER OF 1 MILLION SHARES BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL THE REDWOOD CITY CALIF COMPANY'S LOSS IN THE QUARTER ENDED SEPT 30 EQUIVALENT TO 35 CENTS A SHARE HAD BEEN EXPECTED THE LOSS WIDENED FROM A YEAREARLIER DEFICIT OF 21 MILLION OR 14 CENTS A SHARE REVENUE ROSE TO 26 MILLION FROM NONE A YEAR AGO THE COMPANY SAID IT INTENDS TO FILE EARLY THIS WEEK A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE PROPOSED PUBLIC OFFERING ANALYSTS PROJECT LOSSES FOR 3DO FOR AT LEAST THE NEXT TWO FISCAL YEARS SO 3DO NEEDS TO FIND DIFFERENT WAYS TO FINANCE DEVELOPMENT OF ITS TECHNOLOGY FOR PLAYING CDROM DISKS AND FOR INTERACTIVE TELEVISION SOME OF THAT FINANCING COMES FROM ITS POWERFUL INVESTORS WHO INCLUDE AMERICAN TELEPHONE & TELEGRAPH CO AND TIME WARNER INC 3DO WENT PUBLIC IN MAY AND ALREADY HAS A LOFTY MARKET CAPITALIZATION OF SOME 750 MILLION AS SHAREHOLDERS BET HEAVILY ON THE SUCCESS OF ITS INTERACTIVE MULTIPLAYER A COMPUTER WITH COMPACTDISK DRIVES AND HIGHQUALITY GRAPHICS TECHNOLOGIES THAT THE COMPANY IS PROMOTING AS CENTRAL COMMANDERS FOR COMPUTERIZED HOMEENTERTAINMENT CENTERS THE SECONDQUARTER RESULTS DON'T REFLECT THE SALES PERFORMANCE OF THE PLAYER BECAUSE PANASONIC CO A UNIT OF ANOTHER 3DO INVESTOR MATSUSHITA ELECTRIC INDUSTRIAL LTD DELIVERED THE FIRST VERSION UNDER THE PANASONIC BRAND NAME OCT 1 ALTHOUGH SALES WERE REPORTED BRISK IN THE FIRST WEEKS STORE MANAGERS HAVE REPORTED RECEIVING MINIMAL SHIPMENTS AND THAT THE EARLY BUYERS WERE PRIMARILY ENTHUSIASTS FOR NEW TECHNOLOGY RESULTS FROM THE CURRENT CHRISTMAS BUYING SEASON MAY PROVIDE A BETTER INDICATION OF MARKET APPEAL SKEPTICS SUGGEST HOWEVER THE 69995 PRICE TAG IS FAR TOO HIGH TO GARNER MASS APPEAL DESPITE THE PLAYER'S POWER AND PERFORMANCE I DO NOT BELIEVE A 700 PRODUCT CAN SELL BEYOND A NICHE SAID TOM KALINSKE PRESIDENT AND CHIEF EXECUTIVE OF VIDEOGAME GIANT SEGA OF AMERICA INC THE REDWOOD CITY CALIF UNIT OF JAPAN'S SEGA ENTERPRISES LTD LESSPOWERFUL GAME PLAYERS PRODUCED BY BOTH SEGA AND ITS ARCHRIVAL NINTENDO OF AMERICA INC A UNIT OF NINTENDO CO ARE SOLD FOR UNDER 150 TRIP HAWKINS 3DO'S PRESIDENT AND CHIEF EXECUTIVE OFFICER HAS INDICATED THAT HIS PLAN IS FOR SOCALLED EARLY ADOPTERS OF THE PLAYER TO GENERATE ENOUGH SALES THAT PRICES CAN BE DROPPED FOR MASS CONSUMPTION 3DO EXECUTIVES HAVE ALSO POINTED OUT THAT THEIR PLAYER IS MORE THAN A GAME PLAYER IT ALSO HAS TECHNOLOGY FOR SUCH THINGS AS ORDERING MOVIES AND SHOPPING FROM HOME BUT SOME ANALYSTS QUESTION WHETHER THERE ARE ENOUGH EARLY ADOPTERS FOR 3DO TO GAIN THAT NEEDED MOMENTUM RICHARD A SHAFFER PRINCIPAL OF TECHNOLOGIC PARTNERS IN NEW YORK SAID 3DO NEEDS TO SELL AT LEAST 100000 OF THE UNITS IN THE FIRST YEAR OF PRODUCTION IN ORDER FOR THE PLAYER TO BE COUNTED A SUCCESS IF LESS THAN 20000 UNITS ARE SOLD HE SAID IT WILL PROVE A BOMB WITH THE STOCK RIDING SO HIGH ON A SPECULATIVE OUTCOME MR SHAFFER SAID INVESTORS RUN RISK INDEED A JUNE ANALYSIS BY ALEX BROWN & SONS INC CONCLUDED THAT A REASONABLE VALUATION OF 3DO'S STOCK SHOUD BE 15 TO 20 BASED ON AN ASSUMPTION THAT THE COMPANY GENERATES 150 MILLION175 MILLION IN ANNUAL SALES BY 1999 YET 3DO'S STOCK CLOSED AT 3725 DOWN 3 OR 75 IN NASDAQ STOCK MARKET TRADING FRIDAY THE ISSUE TRADED AS HIGH AS 4825 IN OCTOBER IN THE YEAR'S FIRST SIX MONTHS THE COMPANY HAD A LOSS OF 369 MILLION OR 190 A SHARE COMPARED WITH A YEAREARLIER LOSS OF 37 MILLION OR 25 CENTS A SHARE THE MOST RECENT HALF INCLUDED A CHARGE OF 214 MILLION RESULTING FROM ACQUISITIONS REVENUE WAS 26 MILLION COMPARED WITH NO REVENUE A YEAR AGO THE STOCK OF 3DO CLOSED AT 3725 DOWN 3 OR 75 IN NASDAQ STOCK MARKET TRADING FRIDAY THE ISSUE TRADED AS HIGH AS 4825 IN OCTOBER 9311080115 931108 INTERNATIONAL USCHINA TENSIONS INVOLVING TEXTILES SEEM LIKELY TO CONTINUE IN TRADE TALKS BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE RECENT EFFORTS TO IMPROVE TRADE RELATIONS WASHINGTON AND BEIJING APPEAR HEADED FOR FURTHER CONFRONTATION OVER TEXTILES SENIOR TRADE OFFICIALS FROM THE TWO COUNTRIES ARE DUE TO MEET TOMORROW IN WASHINGTON FOR A FRESH ROUND OF NEGOTIATIONS AIMED AT RENEWING A FIVEYEAR BILATERAL TEXTILE AGREEMENT WHICH EXPIRES AT YEAR END THE TWO SIDES ARE EXPECTED TO LOCK HORNS OVER A US PROPOSAL DESIGNED TO FORCE CHINA TO CRACK DOWN HARDER ON ILLEGAL SHIPMENTS OF CHINESE TEXTILES TO THE US WASHINGTON HAS THREATENED TO SLASH CHINA'S OVERALL TEXTILE QUOTAS BY 25 TO 35 IF BEIJING DOESN'T COMPLY WITH US DEMANDS FOR TOUGHER ACTION AGAINST ILLEGAL SHIPMENTS WASHINGTON ESTIMATES THAT CHINESE COMPANIES ILLEGALLY SLIP 2 BILLION OF TEXTILES INTO THE US EACH YEAR BY MISREPRESENTING THE COUNTRY OF ORIGIN AND SENDING THE PRODUCTS VIA THIRD COUNTRIES IN A STATEMENT MADE AVAILABLE TO THIS NEWSPAPER ZHOU KEREN THE CHIEF TEXTILE NEGOTIATOR FOR CHINA'S TRADE MINISTRY DISPUTED THE US ESTIMATE AND CALLED WASHINGTON'S DEMAND FOR ACTION UNACCEPTABLE THE DISCORD COMES AS THE CLINTON ADMINISTRATION IS TRYING TO MEND RELATIONS WITH CHINA A CHINESE OFFICIAL FAMILIAR WITH THE TALKS SAID BEIJING HOPES THE US WILL SOFTEN ITS STAND ON TEXTILES TO HELP SMOOTH THE WAY FOR A MEETING BETWEEN PRESIDENT CLINTON AND HIS CHINESE COUNTERPART JIANG ZEMIN IN SEATTLE ON NOV 19 ANY PROGRESS IN THE TALKS WOULD BE THE BEST PRESENT FOR THE SUMMIT MEETING THE CHINESE OFFICIAL SAID A WESTERN OFFICIAL FAMILIAR WITH WASHINGTON'S STAND RETORTED TIES ARE IMPROVING BUT THAT DOESN'T MEAN THAT THE CLINTON ADMINISTRATION CAN IGNORE THE ILLEGAL SHIPMENTS THE BILATERAL TEXTILE AGREEMENT GOVERNS THE ANNUAL QUANTITY OF CHINESE CLOTHING AND TEXTILE EXPORTS TO THE US CURRENTLY VALUED AT ROUGHLY 46 BILLION WASHINGTON WHICH ACCUSES CHINA OF BEING THE BIGGEST SOURCE OF ILLEGAL TEXTILE SHIPMENTS TO THE US OVER THE PAST THREE YEARS HAS REPEATEDLY TRIED TO PROD BEIJING INTO TOUGH ACTION AGAINST SUCH SALES FRUSTRATED BY THE LACK OF PROGRESS JENNIFER HILLMAN CHIEF TEXTILE NEGOTIATOR AT THE US TRADE REPRESENTATIVE'S OFFICE IN EARLY SEPTEMBER DEMANDED THE INCLUSION OF AN ANTICIRCUMVENTION PROVISION IN THE NEXT SINOUS TEXTILE PACT THE PROVISION WOULD ALLOW THE US TO DEDUCT FROM CHINA'S TEXTILE QUOTAS AS MUCH AS THREE TIMES THE AMOUNT OF ANY ILLEGAL SHIPMENTS SEIZED IF CHINA REFUSES TO ACCEPT SUCH A PROVISION THE US HAS THREATENED TO SLASH CHINA'S TEXTILE QUOTAS AND REDUCE FLEXIBILITY IN THE USE OF THE QUOTAS SUCH FLEXIBILITY INCLUDES THE EXPORTING COUNTRY'S RIGHT TO CARRY FORWARD A CERTAIN AMOUNT OF ONE YEAR'S UNUSED QUOTAS FOR USE THE NEXT YEAR AND THE RIGHT TO TRANSFER UNUSED QUOTAS FOR ONE PRODUCT CATEGORY INTO ANOTHER ONE THE ANTICIRCUMVENTION PROVISION AIMS AT PUTTING THE BURDEN OF CONTROL ON THE EXPORTING COUNTRY THE WESTERN OFFICIAL SAID HE ADDED THAT THE US IS SEEKING THE SAME PROVISION FROM EACH OF THE 25 COUNTRIES SCHEDULED TO RENEW BILATERAL TEXTILE AGREEMENTS WITH THE US NEXT YEAR THESE EXPORTERS INCLUDE SOUTH KOREA HONG KONG AND THE PHILIPPINES IN A SIXPAGE STATEMENT MR ZHOU SAID THE CHINESE SIDE OPPOSES ANY UNILATERAL DEDUCTION OF CHINA'S QUOTAS WITHOUT CLEAR EVIDENCE OF VIOLATIONS HE ALSO SAID SUCH A MOVE COULD DAMPEN CHINESE ENTHUSIASM FOR BATTLING ILLEGAL TRANSSHIPMENTS AND SERIOUSLY AFFECT THE NORMAL DEVELOPMENT OF SINOUS TRADE MR ZHOU INSISTED THAT CHINA IS COMMITTED TO COMBATING ILLEGAL SHIPMENTS HE CITED NEW REGULATIONS AND THE ESTABLISHMENT OF A TASK FORCE TO ENFORCE THEM CHINA'S TRADE MINISTRY RECENTLY REVOKED BUSINESS LICENSES OR ARRESTED OFFENDERS AT NINE CHINESE STATEOWNED TRADING COMPANIES FOUND TO HAVE MADE SUCH ILLEGAL TEXTILE SHIPMENTS A CHINESE OFFICIAL SAID THE US APPEARS UNCONVINCED BY CHINA'S MOVES JUST LOOK AT HOW MUCH RESOURCES THE CHINESE HAVE DEVOTED TO RESOLVING THE PROBLEM SAID THE WESTERN OFFICIAL HONG KONG HAS 300 PEOPLE TRACKING TRANSSHIPMENT PROBLEMS AND CHINA HAS ONLY A HANDFUL 9311080114 931108 MARKETING & MEDIA ADVERTISING BACKER RETIRES FROM SAATCHI UNIT CRACKNELL IS NAMED HIS SUCCESSOR BY KEVIN GOLDMAN IT'S MILLER TIME FOR BILL BACKER THE 67YEAROLD MR BACKER WHO CREATED THE MILLER TIME CAMPAIGN FOR MILLER HIGHLIFE IN 1971 OFFICIALLY RETIRED FRIDAY AS VICE CHAIRMAN AND WORLDWIDE CREATIVE DIRECTOR OF BACKER SPIELVOGEL BATES WORLDWIDE A UNIT OF SAATCHI & SAATCHI SUCCEEDING MR BACKER IS ANDREW CRACKNELL 47 WHO WILL RETAIN HIS POSITION AS VICE CHAIRMAN AND EXECUTIVE CREATIVE DIRECTOR AT BSB DORLAND THE AGENCY'S LONDON OFFICE MR CRACKNELL'S APPOINTMENT COMES AS BSB IS REACHING A CROSSROAD CARL SPIELVOGEL THE AGENCY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER IS EXPECTED TO RELINQUISH THE CHIEF EXECUTIVE POSITION IN JANUARY TO MICHAEL BUNGEY WHO IS CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER MESSRS BUNGEY AND CRACKNELL NEED TO FIX BSB'S FLAGSHIP NEW YORK AGENCY THE LINCHPIN OF THE DOMESTIC OPERATIONS AND THE BRANCH THAT AGENCY OFFICIALS SAY IS MOST RESPONSIBLE FOR THE CONTINUING GROWTH OF THE BSB NETWORK LIKE ANY PLACE THIS AGENCY COULD DO BETTER MR CRACKNELL SAYS IT HAD A NUMBER OF SERIOUS BODY BLOWS RECENTLY THERE ARE AREAS THAT CONCERN ME AND RIGHT NOW I WOULD LIKE TO HAVE INTERNAL ACCOUNT REVIEWS TO SEE HOW CREATIVE DECISIONS WERE ARRIVED AT WITH THE EXCEPTION OF TRANS WORLD AIRLINES AND GENERAL FELT INDUSTRIES BSB HASN'T WON ANY MAJOR NEW BUSINESS LATELY IT RECENTLY LOST SOME BIG CLIENTS INCLUDING MAGNAVOX DESPITE SOME IRREVERENT AND WELLRECEIVED COMMERCIALS STARRING COMEDIAN JOHN CLEESE AND IT NEVER FULLY RECOVERED FROM LOSING THE MILLER LITE ACCOUNT IN 1991 TO LEO BURNETT IN CHICAGO DOMESTICALLY BSB ADVERTISING ISN'T CONSIDERED PARTICULARLY ORIGINAL COMMERCIALS FOR TWA AND M&M/MARS PARTICULARLY ITS M&M'S BRAND ARE CRITICIZED AS BLAND BSB DOES HAVE SOME SUCCESS STORIES IT TURNED DAVE THOMAS THE ROTUND FOUNDER OF THE WENDY'S FASTFOOD CHAIN INTO A VIRTUAL ICON AND IT CREATED THE CHEEKY HYUNDAI ADS DEPICTING A SELFHELP GROUP IN WHICH THE POOR SOULS SHEEPISHLY ADMIT TO OWNING THE VEHICLE BUT BSB'S NEW YORK UNIT NEEDS A TUNEUP AND THAT WILL BE ENGINEERED BY MR CRACKNELL A SOFTSPOKEN EXECUTIVE WHO WAS BORN IN GILLINGHAM ENGLAND A TOWN KNOWN FOR ITS FOOTBALL TEAMS BSB HAS WORLDWIDE BILLINGS OF 51 BILLION BUT ONLY 976 MILLION DOMESTICALLY CLEARLY ITS DOMESTIC OPERATIONS NEED TO GROW MR CRACKNELL SAYS HE DOESN'T WANT TO PASS JUDGMENT YET ON ANY BSB CREATIVE WORK NOR DOES HE PLAN TO BRING IN NEW PEOPLE TO RUN THE SHOP BUT IF BSB DORLAND/LONDON'S WORK IS ANY INDICATION OF MR CRACKNELL'S OVERALL ADVERTISING STRATEGY HUMOR AND IRREVERENCE WILL SURELY PLAY A PART IN A COMMERCIAL FOR HEINZ KETCHUP FOR INSTANCE A WOMAN SIDLES UP TO A BEEFY CONSTRUCTION WORKER WHO IS SHAKING BECAUSE HE'S HANDLING A JACKHAMMER THE WOMAN IS HOLDING A BOTTLE OF HEINZ AND THE STUBBORN PRODUCT FINALLY OOZES OUT MR CRACKNELL SAYS HE DOESN'T BELIEVE IN A HOUSE STYLE EVEN THOUGH A SAMPLE REEL OF BSB DORLAND SHOWS NOTHING BUT LAUGH ALOUD SPOTS YOU SHORTCHANGE THE CLIENT IF YOU DICTATE A CERTAIN STYLE THROUGHOUT THE AGENCY'S BODY OF WORK HE SAYS NEVERTHELESS HE ADDS HE PERSONALLY THRIVES ON IRREVERENCE WHICH IS JUST FINE FOR MR CRACKNELL'S PREDECESSOR BILL BACKER TOO MUCH OF ADVERTISING ISN'T FUN HE SAYS MR BACKER COWROTE I'D LIKE TO TEACH THE WORLD TO SING FOR COCACOLA AS WELL AS IT'S THE REAL THING AND CREATED SUCH CAMPAIGNS AS SOUP IS GOOD FOOD FOR CAMPBELL SOUP AND TASTES GREAT LESS FILLING FOR MILLER LITE HE BELIEVES ADS THESE DAYS ARE PITCHED TOO MUCH TO 18YEAROLDS OF THE MTV GENERATION THE QUICK EDITS ARE EVERYTHING MR BACKER SAYS EVERYTHING IS MECHANICAL THE PEOPLE IN THE ADS SEEM TO GET SO LITTLE PLEASURE OUT OF LIFE BACKER SPIELVOGEL HE SAYS WAS FOUNDED ON THE CREDO THAT PEOPLE LIKE PEOPLE WHO LIKE THEM SO WE PUT IN OUR COMMERCIALS LIKABLE INDIVIDUALS BACKER & SPIELVOGEL WAS PURCHASED IN 1986 BY SAATCHI & SAATCHI AND WITHIN A YEAR SAATCHI MERGED THE AGENCY WITH TED BATES ADVERTISING MR BACKER SEES UNCERTAIN TIMES AHEAD FOR HIS AND OTHER AD AGENCIES INTERACTIVE TELEVISION FOR ONE IS JUST ABOUT TO COME OF AGE ADVERTISING HAS YET TO DECIDE HOW IT WILL FIT IN HE SAYS THE BUSINESS WILL GO THROUGH SOME TOUGH TIMES AND HAVE TO REINVENT ITSELF IT WAS SIMPLER WHEN MR BACKER BEGAN HIS ADVERTISING CAREER IN 1953 HIRED BY MCCANNERICKSON AS A COPYWRITER THE ONLY MAJOR CHANGES DURING ADVERTISING'S SOCALLED GOLDEN ERA WAS TO DECIDE WHEN TO BEGIN PRODUCING COMMERCIALS IN COLOR NOW HE SAYS ADVERTISING IS HAVING A HARD TIME KEEPING AHEAD OF THE NEW MEDIA AD AGENCIES CAN NO LONGER CALL THEMSELVES EXPERTS ON THE MEDIA MILLER LITE IS THE CLIENT HE REGRETS MOST HAVING LOST AND HE SAYS A PHILOSOPHICAL DISAGREEMENT LED TO CAMPBELL'S FLAGSHIP RED AND WHITE CANNED SOUPS DEFECTING FROM THE AGENCY TO GO WITH OMNICOM GROUP'S BBDO MR BACKER STRONGLY DISAGREED WITH CAMPBELL'S NEW MARKETING STRATEGY WHICH IS TO SELL SOUP YEARLONG AND TO A BROADER AUDIENCE THAN IN THE PAST THEY THINK THEY CAN SELL TIN CANS TO 18YEAROLDS HE SAYS OF CAMPBELL'S I DON'T THINK THERE'S A MARKET THERE FOR TIN CANS AS FOR MR BACKER HIMSELF HE SAYS HE HAS ENOUGH TO KEEP HIM BUSY INCLUDING KEEPING AN OFFICE AT THE AGENCY DELIVERING LECTURES AND DIVIDING HIS TIME BETWEEN NEW YORK AND HIS FARM IN VIRGINIA ADVERTISING HAS BEEN VERY GOOD TO BILL BACKER INDEED HEATER/EASDON AN ALSORAN FOR THE MASSACHUSETTS DEPARTMENT OF PUBLIC HEALTH'S 14 MILLION ANTISMOKING ACCOUNT HAS FOUND A WAY TO BREATHE NEW LIFE INTO THE CAMPAIGN IT CREATED FOR THE PITCH DON EASDON AND BILL HEATER THE AGENCY'S FOUNDERS PRODUCED THE COMMERCIALS EVEN THOUGH THEY HADN'T WON THE ACCOUNT NOW THEY HAVE BEGUN LICENSING THE SPOTS TO LOCAL TELEVISION STATIONS WHO IN TURN MARKET THEM AS SPONSORSHIP VEHICLES TO LOCAL ADVERTISERS THE MEDIASERVICE PRO MEDIA INC OF NEEDHAM MASS HAS TEAMED UP WITH THE AGENCY FOR THE PROJECT THE ENTICING SPOTS TAKE AN UNUSUAL APPROACH TO THE STOPSMOKING MESSAGE THEY ATTEMPT TO MAKE THE PHRASE TOBACCOFREE INTO WHAT MR EASDON CALLS A PSEUDOBRAND THE AGENCY HAS EVEN CREATED A TF LOGO AND PUT IT ON STICKERS AND TSHIRTS ONE DREAMLIKE SPOT SHOWS AN UNDERWATER VIEW OF A BABY PLUNGING INTO A POOL BREATHING OUT BUBBLES ANOTHER SHOWS A RADIANT WOMAN WITH PHRASES FLOATING PAST HER FACE SUCH AS LOOK MORE BEAUTIFUL AND BREATHE EASIER SHE EXHALES AND BLOWS THE TYPE AWAY EACH SPOT ENDS WITH A SOOTHING VOICEOVER THAT ASKS WOULD YOU RATHER BE TOBACCO FREE WMUR AN ABCAFFILIATE IN MANCHESTER NH SIGNED ON AS THE CAMPAIGN'S FIRST CUSTOMER THE STATION SIGNED UP A NONPROFIT HEALTH MAINTENANCE ORGANIZATION MATTHEW THORNTON HEALTH PLAN AS THE EFFORT'S SPONSOR FOR ITS FIRST YEAR MARY LUCAS SALES AND MARKETING MANAGER FOR THE HMO CALLS THE ARRANGEMENT COST EFFECTIVE PLUS WE BELIEVE IN IT AS AN ORGANIZATION 9311080113 931108 ACTAVA REPORTS LOSS FOR THE THIRD QUARTER SEES LOSS FOR THE YEAR ATLANTA ACTAVA GROUP INC CITING MANUFACTURING PROBLEMS WITH NEW PRODUCTS REPORTED A THIRDQUARTER LOSS AND EXPECTS TO POST A LOSS FOR THE YEAR FOR THE QUARTER ENDED SEPT 30 ACTAVA REPORTED A NET LOSS OF 9 MILLION OR 51 CENTS A SHARE COMPARED WITH NET INCOME OF 47 MILLION OR 28 CENTS A SHARE A YEAR EARLIER SALES INCREASED 12 TO 344 MILLION PRIMARILY FROM THE ACQUISITION OF DIVERSIFIED PRODUCTS CORP IN JUNE THE LOSS WAS ATTRIBUTED MAINLY TO MANUFACTURING PROBLEMS WITH NEW PRODUCTS AT THE COMPANY'S SNAPPER DIVISION ACTAVA SAID IT EXPECTS TO POST A LOSS FOR THE YEAR FOR 1992 THE COMPANY REPORTED NET INCOME OF 116 MILLION OR 70 CENTS A SHARE IN TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE ACTAVA SHARES CLOSED AT 725 DOWN 625 CENTS OR 79 CHARLES R SCOTT ACTAVA'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE FITNESS AND LAWNCARE PRODUCTS COMPANY HAS TAKEN STEPS TO RESOLVE THE PROBLEMS WITH SNAPPER IN AUGUST JERRY J SCHWEINER WAS APPOINTED TO HEAD THE DIVISION AND MR SCHWEINER HAS PUT NEW PROGRAMS IN PLACE TO INCREASE OPERATING EFFICIENCY AND REDUCE FACTORY COSTS THE COMPANY SAID ALSO SNAPPER REDUCED PRODUCTION AND SHIPMENTS TO DISTRIBUTORS IN THE THIRD QUARTER TO BALANCE WITH ESTIMATED RETAIL SALES LOWER PRODUCTION IS EXPECTED TO CONTINUE FOR THE REST OF THE YEAR 9311080112 931108 ENTERPRISE NEW KIND OF COMPANY ATTRACTS MANY SOME LEGAL SOME NOT BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL THEY GO BY THE HUMDRUM NAME OF LIMITEDLIABILITY COMPANIES BUT THEY'RE ARGUABLY THE HOTTEST THING IN BUSINESS STARTUPS TODAY EVEN DAN QUAYLE HAS JUMPED ON THE LLC BANDWAGON UNFORTUNATELY SAY REGULATORS SO HAVE A LOT OF SUSPECTED SCAM ARTISTS AN LLC IS A BUSINESS ENTITY THAT OFFERS OWNERS THE LIABILITY PROTECTIONS OF A TRADITIONAL CORPORATION AND THE TAX ADVANTAGES OF A PARTNERSHIP THIRTYFIVE STATES NOW ALLOW THE FORMATION OF LLCS UP FROM JUST EIGHT IN 1991 THOUSANDS OF LLCS HAVE BEEN FORMED IN THE LAST FEW YEARS INCLUDING AN INDIANAPOLIS FINANCIALSERVICES FIRM LAUNCHED LAST SUMMER CALLED CIRCLE INVESTORS ONE OF WHOSE INVESTORS AND OFFICERS IS MR QUAYLE THE FORMER VICE PRESIDENT SOME SAY LLCS COULD BECOME THE DOMINANT CORPORATE FORM FOR SMALL BUSINESSES IN THE YEARS AHEAD IT IS A PERFECT REPLACEMENT FOR THE JOINT VENTURE GENERAL PARTNERSHIP AND IN MANY CASES THE LIMITED PARTNERSHIP I WOULD THINK A LOT OF ENTREPRENEURS WOULD USE THIS SAYS GEORGE W COLEMAN A DALLAS ATTORNEY WHO HELPED DRAFT TEXAS'S LIMITEDLIABILITYCOMPANY LAW BUT TO THE DISMAY OF REGULATORS AROUND THE COUNTRY SOME SUSPECT ENTREPRENEURS HAVE ALSO DISCOVERED LLCS FIRMS SELLING OWNERSHIP INTERESTS IN SOCALLED WIRELESS CABLE AND RELATED COMMUNICATIONS TECHNOLOGIES HAVE BEGUN PACKAGING THEIR INVESTMENT PRODUCTS BY SETTING UP AN LLC AND THEN SELLING UNITS IN IT TO THE PUBLIC TO AVOID STATE AND FEDERAL SECURITIES LAWS REGULATORS SAY SOME PROMOTERS ARE USING LLCS TO PULL A SMOKEANDMIRROR SWITCH TO AVOID REGULATION SAYS MICHAEL MOREHEAD ASSISTANT DIRECTOR FOR ENFORCEMENT AT THE ILLINOIS SECURITIES DEPARTMENT UNLESS LLCS ARE BROUGHT UNDER THE SECURITIESLAW UMBRELLA MR MOREHEAD SAYS HE FEARS THEY ARE GOING TO BE THE WAVE OF THE FUTURE AS FAR AS OFFEXCHANGE PROMOTIONS A LOT OF OTHER REGULATORS AGREE WITH HIM AT LEAST 16 STATES HAVE FILED LEGAL ACTIONS AGAINST A VARIETY OF WIRELESS FIRMS SEEKING TO CLOSE DOWN THEIR SALES OPERATIONS ON THE GROUNDS THAT OWNERSHIP INTERESTS IN LLCS ARE SECURITIES THESE REGULATORS WANT TO CLASSIFY LLC OWNERSHIP INTERESTS AS SECURITIES ENABLING THEM TO BLOCK PROMOTERS FROM COMMITTING THE ALLEGED MISREPRESENTATIONS AND PRICE GOUGING THAT SOME MAY BE ENGAGED IN NOW WIRELESS CONCERNS CLAIM THEY ARE DOING NOTHING WRONG AND ARE FIGHTING THE REGULATORY EFFORTS FOR THOSE WISHING TO SELL INVESTMENTS TO THE PUBLIC WHILE AVOIDING SECURITIES REGULATIONS THE LLC IS A PARTICULARLY ATTRACTIVE VEHICLE STOCK IN A TRADITIONAL CORPORATION HAS LONG BEEN DEEMED A SECURITY SOCALLED S CORPORATIONS A FAVORITE BUSINESS FORM FOR MANY ENTREPRENEURS ARE LIMITED TO HAVING NO MORE THAN 35 OWNERS FAR TOO RESTRICTIVE FOR WIRELESS FIRMS TRYING TO RECRUIT HUNDREDS OF INVESTORS FOR SOME LLCS INTEREST LLCS WERE FIRST AUTHORIZED BY WYOMING IN 1977 BUT DIDN'T BLOSSOM UNTIL THE INTERNAL REVENUE SERVICE IN 1988 RULED THAT FOR TAX PURPOSES LLCS WOULD BE TREATED LIKE PARTNERSHIPS THIS MEANT THAT PROFITS FROM AN LLC COULD FLOW DIRECTLY TO EACH OWNER TO BE TAXED ON HIS OR HER PERSONAL RETURNSTHUS AVOIDING THE DOUBLE TAXATION THAT FACES CORPORATIONS AFTER THAT IRS RULING INTEREST IN LLCS GREW RAPIDLY BECAUSE OWNERS COULD FINALLY BE ASSURED OF FAVORABLE TAX TREATMENT TO GO ALONG WITH THEIR LIMITEDLIABILITY ADVANTAGES LIKE CORPORATE STOCKHOLDERS LLC OWNERS AREN'T LIABLE FOR LAWSUIT JUDGMENTS AGAINST THE COMPANY THE RISE OF LLCS COINCIDED WITH A GROWING DEBATE OVER WIRELESSCOMMUNICATIONS FIRMS THOUGH THERE ARE MANY BIG AND LEGITIMATE FIRMS INVOLVED IN THE RAPIDLY EXPANDING BUSINESSES OF CELLULAR TELEPHONES WIRELESS CABLE IN WHICH TELEVISION PROGRAMS ARE SENT BY HIGH FREQUENCIES OVER THE AIRWAVES AND THE LIKE REGULATORS SAY NUMEROUS SUSPECT OPERATORS HAVE USED MISREPRESENTATIONS AND INFLATED PROMISES TO LURE PEOPLE INTO INVESTING TENS OF MILLIONS OF DOLLARS IN VARIOUS WIRELESS INVESTMENT PROGRAMS SOME REGULATORS ARGUE THE WIRELESS FIELD REPRESENTS A POTENTIALLY GIANT AREA OF FRAUD FEDERAL AND STATE AGENCIES HAVE TAKEN ACTIONS AGAINST WIRELESS CONCERNS FOR ALLEGED MISREPRESENTATIONS AND VIOLATION OF CONSUMER AND INVESTORPROTECTION LAWS THIS IS A MAJOR ENFORCEMENT CONCERN SAYS ROGER WALTER GENERAL COUNSEL TO THE KANSAS SECURITY COMMISSIONER WHO HAS FILED HALF A DOZEN ACTIONS TO CLOSE DOWN WIRELESSSELLING OPERATIONS IN KANSAS FRAUDS OFFICIALS HAVE LONG BEEN ABLE TO USE STATE SECURITIES REGULATIONS TO BLOCK INVESTMENT PROMOTIONS THEY THINK ARE POSSIBLE FRAUDS THAT IS BECAUSE A SECURITY OFFERING MUST BE REGISTERED AND MEET CERTAIN CRITERIA DESIGNED TO PROTECT INVESTORS SOME WIRELESS INVESTMENTS CLEARLY DON'T MEET THOSE CRITERIA REGULATORS SAY FOR EXAMPLE KANSAS HAS ALREADY ISSUED A CEASEANDDESIST ORDER AGAINST UNITED COMMUNICATIONS LTD OF HENDERSON NEV ON THE GROUNDS IT WAS VIOLATING STATE SECURITIES LAW IN THE SALE OF UNITS IN A WIRELESS LLC TO OPERATE IN UTICA NY UNITED IS ALSO SELLING INTERESTS IN AN LLC FOR A WIRELESS CABLE OPERATION IN DAYTON OHIO IN WHICH ABOUT 60 OF THE 158 MILLION BEING RAISED IS SLATED TO GO TO VARIOUS SELLING AND PROMOTIONAL EXPENSES UNDERWRITERS OF SECURITIES OFFERINGS ARE GENERALLY ALLOWED TO TAKE NO MORE THAN ABOUT 20 FOR SELLING AND PROMOTIONAL COSTS REGULATORS SAY AND EVEN LESS ON AN OFFERING AS LARGE AS UNITED'S A UNITED SPOKESMAN SAYS HIS FIRM HAS DONE NOTHING WRONG AND DOESN'T NEED TO REGISTER ITS INVESTMENT OFFERINGS AS SECURITIES BECAUSE THEY AREN'T AS TO THE HIGH PERCENTAGE OF ITS OFFERINGS GOING TO SELLING FEES THE SPOKESMAN SAYS THAT WHEN IT COMES TO WIRELESS INVESTMENTS RAISING CAPITAL IS EXPENSIVE LLC PROMOTERS ARGUE THAT THE LLC INTERESTS THEY OFFER AREN'T SECURITIES BECAUSE THE LLC STRUCTURE REQUIRES ALL INVESTORS TO BE ACTIVE PARTICIPANTS IN THE MANAGEMENT OF THE COMPANY GENERALLY COURTS HAVE RULED THAT WHEN THERE IS ACTIVE OWNERSHIP PARTICIPATION AND CONTROL THE INVESTMENT DOESN'T QUALIFY AS A SECURITY THE ACTUAL MEMBERS OF LLCS MUST COME TOGETHER SET RULES AND REGULATIONS APPOINT A MANAGER AND GO OUT AND HIRE CONSTRUCTION PEOPLE SAYS JB GROSSMAN ATTORNEY FOR EXPRESS COMMUNICATIONS INC EXPRESS IS A DALLAS FIRM THAT HAS FORMED LLCS IN THE CELLULARTELEPHONE AND OTHER WIRELESS BUSINESSES MR GROSSMAN SAYS THE COST AND RED TAPE OF FILING AS SECURITIES IN STATES WOULD STIFLE THE ABILITY OF ENTREPRENEURS TO RAISE CAPITAL SO FAR 16 STATES HAVE FILED ACTIONS AGAINST EXPRESS CLAIMING IT IS VIOLATING LAWS THAT BAR THE SALE OF UNREGISTERED SECURITIES TO THE PUBLIC REGULATORS ARGUE THAT WHEN THERE ARE DOZENS OR EVEN HUNDREDS OF OWNERS OF AN LLC SPREAD AROUND THE COUNTRY THERE IS NO WAY EACH OF THEM CAN TAKE AN ACTIVE PART IN RUNNING THE COMPANY EXPRESS IS CONTESTING THOSE STATE ACTIONS AND THE FIRST RULINGS BY ADMINISTRATIVEHEARING OFFICERS ARE EXPECTED SOON MEANWHILE EXPRESS HAS OTHER PROBLEMS IN MAY THE FEDERAL BUREAU OF INVESTIGATION SEIZED RECORDS IN THE COMPANY'S DALLAS OFFICES THERE IS PROBABLE CAUSE TO BELIEVE THAT EXPRESS OFFICIALS HAVE COMMITTED CRIMINAL VIOLATIONS INVOLVING SCHEMES ANEFRAUD ACCORDING TO AN AFFIDAVIT FILED IN A DALLAS FEDERAL COURT BY AN FBI AGENT IN CONNECTION WITH THE INVESTIGATION ATTORNEYS FOR EXPRESS DENY THE FBI ALLEGATIONS AND SAY THEY ARE CONFIDENT THE COMPANY WILL BE VINDICATED AND GO ON TO GREAT THINGS WITH THE HELP OF LLCS OUR HOPE IS THAT THE LLC WILL BECOME A VEHICLE TO LET SMALL ENTREPRENEURS RAISE MONEY AND BRING PRODUCTS TO MARKET SAYS MR GROSSMAN THE EXPRESS ATTORNEY 9311080111 931108 BUSINESS BRIEF CABLEVISION SYSTEMS CORP AFFILIATE AGREES TO PURCHASE THREE BOSTONAREA SYSTEMS CABLEVISION SYSTEMS CORP SAID AN AFFILIATE AR CABLE PARTNERS HAS AGREED TO BUY THREE MASSACHUSETTS CABLE SYSTEMS FOR 90 MILLION FROM NASHOBA COMMUNICATIONS THE CABLE SYSTEMS WITH 34500 SUBSCRIBERS IN SUBURBAN BOSTON ARE NEAR OTHER MASSACHUSETTS CABLE SYSTEMS OWNED OR MANAGED BY CABLEVISION CABLEVISION WITH 23 MILLION SUBSCRIBERS IN 19 STATES HAS BOUGHT A NUMBER OF SYSTEMS RECENTLY LAST MONTH THE WOODBURY NY COMPANY AGREED TO PAY 463 MILLION FOR THREE CABLE SYSTEMS IN NEW JERSEY AND MASSACHUSETTS OWNED BY SUTTON CAPITAL ASSOCIATES INC AR CABLE IS A PARTNERSHIP OF SUBSIDIARIES OF CABLEVISION AND EM WARBURG PINCUS & CO WHILE NASHOBA IS A GROUP OF THREE LIMITED PARTNERSHIPS 9311080110 931108 TECHNOLOGY BRIEF ROCHE HOLDING LTD BIG HOSPITAL GROUP AGREES TO SELL UNIT'S ANTIBIOTIC HOFFMANNLA ROCHE INC NUTLEY NJ SAID IT HAS REACHED A TWOYEAR AGREEMENT WITH VOLUNTARY HOSPITALS OF AMERICA A BIG BUYING ALLIANCE OF HOSPITALS TO SELL ITS ANTIBIOTIC ROCEPHIN ROCEPHIN A ONCEADAY INJECTABLE ANTIBIOTIC IS THE BIGGESTSELLING ANTIBIOTIC IN VHA'S 900MEMBER HOSPITALS ACCORDING TO CHARLES T REINDERS DIRECTOR OF VHA PHARMACY PROFESSIONAL SERVICES INCLUDED IN THE AGREEMENT ARE DISCOUNTS TO HOSPITALS THAT REACH CERTAIN SALES LEVELS MR REINDERS SAID THE PACT INCLUDES AN EDUCATIONAL PROGRAM AND INCENTIVES TO TEACH DOCTORS APPROPRIATE USES OF THE DRUG HOFFMANNLA ROCHE A UNIT OF ROCHE HOLDING LTD OF BASEL SWITZERLAND AND VHA WOULDN'T DISCLOSE THE PACT'S VALUE 9311080109 931108 BUSINESS BRIEF PACIFIC ENTERPRISES LAW JUDGE PROPOSES UNIT CUT RATES BY 124 MILLION A CALIFORNIA PUBLIC UTILITIES COMMISSION ADMINISTRATIVE LAW JUDGE PROPOSED THAT SOUTHERN CALIFORNIA GAS CO THE PRINCIPAL OPERATING UNIT OF PACIFIC ENTERPRISES CUT ITS ANNUAL RATES BY 124 MILLION SOUTHERN CALIFORNIA GAS HAS ASKED THE COMMISSION FOR RATES THAT WOULD REDUCE REVENUE BY ONLY 7 MILLION A YEAR THE LOS ANGELESBASED COMPANY IS ONE OF THE NATION'S LARGEST RETAIL GAS DISTRIBUTORS THE LAW JUDGE'S PROPOSAL WHICH ISN'T BINDING ON THE COMMISSION WOULD REDUCE RESIDENTIAL RATES ABOUT 44 AND CERTAIN GAS TRANSPORTATION RATES 48 IT WOULD ALSO REDUCE FUNDING FOR ENERGY CONSERVATION PROGRAMS AND CERTAIN COSTS ASSOCIATED WITH EXPECTED GROWTH IN SOUTHERN CALIFORNIA GAS'S CUSTOMER BASE A COMPANY SPOKESMAN SAID SOUTHERN CALIFORNIA GAS WILL PURSUE ITS CASE WITH THE PUBLIC UTILITIES COMMISSION 9311080108 931108 BANKER AT AMERICAN EXPRESS AFFILIATE FACES MONEYLAUNDERING INVESTIGATION BY LAURIE P COHEN AND KENNETH H BACON STAFF REPORTERS OF THE WALL STREET JOURNAL A CURRENT AND A FORMER EMPLOYEE OF AMERICAN EXPRESS BANK INTERNATIONAL ARE BEING INVESTIGATED BY A FEDERAL GRAND JURY FOR THEIR POSSIBLE ROLES IN HELPING AN ALLEGED MEXICAN DRUG SMUGGLER LAUNDER MONEY THE MCALLEN TEXAS GRAND JURY IS TRYING TO DETERMINE WHETHER THE TWO ASSISTED RICARDO AGUIRREVILLAGOMEZ IN LAUNDERING ABOUT 30 MILLION THROUGH ACCOUNTS SET UP WITH AMERICAN EXPRESS BANK INTERNATIONAL'S BEVERLY HILLS CALIF BRANCH IN A 25COUNT INDICTMENT IN FEBRUARY MR AGUIRRE WAS CHARGED BY A MCALLEN GRAND JURY WITH SCHEMING TO LAUNDER MONEY FOR A NORTHERN MEXICO DRUG CARTEL THE INVESTIGATION OF THE TWO INDIVIDUALS ISN'T RELATED TO AN ACTION BY THE FEDERAL RESERVE BOARD LAST WEEK ACCUSING AMERICAN EXPRESS BANK INTERNATIONAL OF IMPROPER BANKING PRACTICES AND IMPOSING A 950000 PENALTY ON THE AMERICAN EXPRESS CO AFFILIATE FED OFFICIALS SAID HOWEVER BOTH THE FED ACTION AND THE GRANDJURY INVESTIGATION TARGET ALLEGED IMPROPRIETIES AND MANAGEMENT DEFICIENCIES IN THE BANK'S BEVERLY HILLS OFFICE WHAT'S MORE ACTIONS BY THE FED AND THE JUSTICE DEPARTMENT WILL HURT THE BANK'S EARNINGS THIS YEAR AMERICAN EXPRESS BANK INTERNATIONAL IS A UNIT OF AMERICAN EXPRESS BANK BOTH BANKS MAKE LOANS TO WEALTHY CUSTOMERS AND THEIR BUSINESSES AROUND THE WORLD BUT THEY REPRESENT ONLY A SMALL PORTION OF AMERICAN EXPRESS'S OVERALL BUSINESS IN THE THIRDQUARTER AMERICAN EXPRESS BANK EARNED 27 MILLION WHILE AMERICAN EXPRESS EARNED 420 MILLION THE FEDERAL GRAND JURY IN MCALLEN SENT LETTERS EARLIER THIS YEAR TO ANTONIO GIRALDI AN AMERICAN EXPRESS BANK INTERNATIONAL OFFICIAL WHO RECENTLY MOVED TO THE BANK'S MIAMI OFFICE FROM THE BEVERLY HILLS OFFICE AND TO LOURDES REATEGUI A FORMER EMPLOYEE IN THE BEVERLY HILLS OFFICE NOTIFYING THE TWO THAT THEY ARE UNDER INVESTIGATION AEBI MAY BE CRIMINALLY LIABLE FOR THE ACTS OF ITS EMPLOYEES ASSISTANT US ATTORNEY DAVID NOVAK WROTE IN A MEMO FILED IN FEDERAL COURT IN BROWNSVILLE TEXAS IN AUGUST A FEDERAL JUDGE ISSUED AN ORDER IN FEBRUARY RESTRAINING 30 MILLION IN ASSETS HELD BY AMERICAN EXPRESS BANK INTERNATIONAL WHILE THE GOVERNMENT SEEKS FORFEITURE OF THOSE ASSETS IN CONNECTION WITH A CRIMINAL INDICTMENT OF ONE OF THE BANK'S CLIENTS THE INVESTIGATION RAISES QUESTIONS ABOUT HOW MUCH A BANK SHOULD KNOW ABOUT ITS CLIENTS THE GOVERNMENT CLAIMS MR AGUIRRE WAS A GASSTATION ATTENDANT WHO COULDN'T HAVE AMASSED THE MONEY LEGALLY GOVERNMENT OFFICIALS SAY THEY BELIEVE THAT MR GIRALDI AND MS REATEGUI HAD REASON TO KNOW THAT MR AGUIRRE WAS USING HIS RELATIONSHIP WITH THE BANK TO LAUNDER MONEY HOWEVER AMERICAN EXPRESS BANK INTERNATIONAL SAYS IT DIDN'T HAVE ANY REASON TO DOUBT ITS CLIENT'S CLAIM THAT HE WAS A WEALTHY BUSINESSMAN WITH OIL AND MEATEXPORT INTERESTS AMERICAN EXPRESS IS OPPOSING THE RESTRAINING ORDER CLAIMING IT WAS AN INNOCENT OWNER OF THE ASSETS AN AEBI SPOKESMAN SAID THE BANK HAD NO ROLE WHATSOEVER IN THE ALLEGED MONEYLAUNDERING SCHEME OF THIS INDIVIDUAL OTHER THAN TO BE ONE OF SEVERAL BANKS IN TEXAS AND NEW YORK WHERE MR AGUIRRE MAINTAINED ACCOUNTS MR GIRALDI DIDN'T RETURN PHONE CALLS SEEKING COMMENT MS REATEGUI WASN'T AVAILABLE TO COMMENT THE CASE IS LIKELY TO ATTRACT ATTENTION IN CONGRESS WHERE REP HENRY GONZALEZ D TEXAS THE CHAIRMAN OF THE HOUSE BANKING COMMITTEE IS PUSHING LEGISLATION TO TIGHTEN CONTROLS ON MONEYLAUNDERING MONEYLAUNDERING IS SOMETIMES A DIFFICULT CRIME TO DETECT AND OVER THE YEARS CONGRESS HAS TAKEN SEVERAL STEPS TO TIGHTEN CONTROLS INCLUDING A LAW THAT REQUIRES BANKS TO REPORT CASH TRANSACTIONS OF 10000 OR MORE THE INDICTMENT OF MR AGUIRRE ALLEGED THAT HE PUT 30 MILLION OF ILLEGAL DRUG PROCEEDS INTO THE US BANKING SYSTEM IT SAID HE DEPOSITED THE MONEY WITH THE AID OF MR GIRALDI AND MS REATEGUI BEGINNING IN JUNE 1989 WHEN THE TWO BANKERS WORKED FOR BANKERS TRUST CO IN NEW YORK MR GIRALDI RESIGNED FROM BANKERS TRUST IN FEBRUARY 1990 AND JOINED AMERICAN EXPRESS BANK INTERNATIONAL IN BEVERLY HILLS TWO MONTHS LATER HE BROUGHT MS REATEGUI AND MOST OF MR AGUIRRE'S ACCOUNTS WITH HIM TO AMERICAN EXPRESS BANK INTERNATIONAL THE CASE ISN'T LIKELY TO GO TO TRIAL ANYTIME SOON THE GOVERNMENT IS STILL INVESTIGATING MR AGUIRRE WHOSE FAMILY CLAIMS HE WAS KILLED IN A CAR CRASH IN MARCH THE GOVERNMENT CONTENDS THAT MR AGUIRRE FAKED HIS DEATH TO AVOID TRIAL IF IT CAN BE PROVED THAT MR AGUIRRE IS INDEED DEAD PROSECUTORS COULDN'T TRY HIM AND THEREFORE COULDN'T GET A CRIMINAL FORFEITURE OF HIS ASSETS HOWEVER PROSECUTORS ARE ALSO SEEKING FORFEITURE OF MR AGUIRRE'S ASSETS IN A PARALLEL CIVIL CASE IN THE CIVIL MATTER AMERICAN EXPRESS HAS THE RIGHT TO ASSERT A CLAIM TO THE MONEY IT BELIEVES IT IS OWED AMERICAN EXPRESS HAS SAID IN COURT FILINGS WITH THE FEDERAL COURT IN BROWNSVILLE THAT IT HOLDS ABOUT 30 MILLION OF ASSETS AFFECTED BY THE RESTRAINING ORDER AND THAT THOSE ASSETS WERE PLEDGED AS SECURITY FOR LOANS AND CREDITS TOTALING 19 MILLION EXTENDED BY AMERICAN EXPRESS BANK INTERNATIONAL THE BANK HAS ALSO SAID THAT AS A RESULT OF THE RESTRAINING ORDER AEBI WAS BARRED FROM RECOVERING PAYMENT OF PASTDUE LOANS SECURED BY THE RESTRAINED ASSETS AND ON JUNE 21 1993 REQUIRED BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM TO CLASSIFY THESE LOANS AS DOUBTFUL AND TO CHARGE 50 OF THEIR FACE AMOUNT AGAINST 1993 EARNINGS AMERICAN EXPRESS BANK INTERNATIONAL SAID THE CHARGE AGAINST EARNINGS WILL CAUSE AEBI TO INCUR A SUBSTANTIAL OPERATING LOSS IN 1993 THE CONSENT ORDER THAT AEBI SIGNED WITH THE FED LAST WEEK ALSO TARGETED ACTIVITIES IN THE BANK'S BEVERLY HILLS AND LOS ANGELES BRANCHES THE FED CHARGED THAT THE BANK VIOLATED RECORDKEEPING AND REPORTING RULES BY AMONG OTHER THINGS FAILING TO REPORT ONE CASH TRANSACTION OF MORE THAN 10000 IN ADDITION THE FED CHARGED THAT THE BEVERLY HILLS BRANCH OF AMERICAN EXPRESS BANK INTERNATIONAL IMPROPERLY MADE DOMESTIC LOANS AEBI WAS CHARTERED TO DO BUSINESS ABROAD AND IS BARRED FROM MAKING DOMESTIC LOANS THE FED ALSO REQUIRED AEBI TO RESERVE AGAINST A POSSIBLE LOSS ON A LOAN TO A FOREIGN CUSTOMER AMERICAN EXPRESS BANK INTERNATIONAL IS A RELATIVELY SMALL SUBSIDIARY OF AMERICAN EXPRESS BANK SAID BRUCE MACLAURY PRESIDENT OF THE BROOKINGS INSTITUTION AND A DIRECTOR OF BOTH BANKS THERE WAS CLEARLY SLOPPY ADMINISTRATION AND INADEQUATE ADMINISTRATION OF THE BEVERLY HILLS AND LOS ANGELES OFFICES MR MACLAURY SAID THE BANK HAS TAKEN A NUMBER OF STEPS TO IMPROVE ITS MANAGEMENT AND TIGHTEN ITS AUDITING PRACTICES IN ANNOUNCING THE PENALTY LAST WEEK THE FED DECLINED TO PROVIDE DETAILS OF HOW AMERICAN EXPRESS BANK INTERNATIONAL ALLEGEDLY VIOLATED FEDERAL BANKING LAW THE FED HAD SAID THAT A CONSENT AGREEMENT BARRED IT FROM PROVIDING INFORMATION ABOUT THE AMERICAN EXPRESS AFFILIATE'S INFRACTIONS THE BANK HAD CONSENTED TO THE ORDER WITHOUT ADMITTING THE FED'S ALLEGATIONS HOWEVER THE FED SAID THAT THE BANK MUST APPOINT AN INDEPENDENT CONSULTANT TO REVIEW THE COMPETENCE OF ITS MANAGEMENT PARTICULARLY IN ITS LOS ANGELES AND BEVERLY HILLS OFFICES 9311080107 931108 MARKETING BRIEF WESTWOOD ONE INC COMPLEX DEAL WITH INFINITY MOVES CLOSER TO COMPLETION WESTWOOD ONE INC SAID IT SIGNED A DEFINITIVE AGREEMENT IN A PREVIOUSLY ANNOUNCED TRANSACTION THAT WOULD COMBINE THE RADIONETWORK OPERATIONS OF INFINITY BROADCASTING CORP AND WESTWOOD ONE UNDER THE TERMS OF THE COMPLEX AGREEMENT WESTWOOD ONE WOULD ACQUIRE UNISTAR RADIO NETWORKS INC WHICH INFINITY HAD AN OPTION TO ACQUIRE FOR 1013 MILLION INFINITY BASED IN NEW YORK WOULD PAY 15 MILLION FOR A 25 STAKE IN LOS ANGELESBASED WESTWOOD ONE SEPARATELY WESTWOOD ONE SAID WESTINGHOUSE CREDIT CORP HAD ACQUIRED WESTWOOD ONE'S TRADE PUBLICATION RADIO & RECORDS IN RETURN FOR ASSUMING 20 MILLION IN DEBT WESTWOOD ONE WHICH HAS SAID IT WANTS TO FOCUS ON ITS CORE RADIONETWORK BUSINESS SAID THE TRANSACTION WOULD RESULT IN A FOURTHQUARTER CHARGE WESTINGHOUSE CREDIT IS A UNIT OF WESTINGHOUSE ELECTRIC CORP 9311080106 931108 POLITICS & POLICY COMPROMISE ON DEFENSE BILL PRESERVES C17 PROGRAM WHILE SETTING CONDITIONS BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSE AND SENATE NEGOTIATORS AGREED ON A 1994 DEFENSEAUTHORIZATION BILL THAT ACCELERATES THE MILITARY'S MOVE INTO THE POSTCOLD WAR WORLD AND SKEPTICALLY ENDORSES THE PENTAGON'S PLAN FOR THE TROUBLED MCDONNELL DOUGLAS CORP C17 PROGRAM UNDERSCORING THE NEW DIRECTIONS IN DEFENSE SPENDING THE 261 BILLION BILL INCLUDES 108 BILLION TO BE SPLIT BETWEEN THE PENTAGON AND THE ENERGY DEPARTMENT FOR DEFENSERELATED ENVIRONMENTAL CLEANUP WORK AND 979 MILLION IN AID TO THE FORMER SOVIET REPUBLICS AMONG THE SMALLER NEW PROVISIONS IS 20 MILLION FOR SPENDING ON WOMEN'S HEALTH ISSUES THE NEW BILL REPRESENTS A 13 BILLION CUT IN DEFENSE SPENDING FROM THE PREVIOUS FISCAL YEAR GEORGIA DEMOCRAT SAM NUNN CHAIRMAN OF THE SENATE ARMED SERVICES COMMITTEE INDICATED THAT HE MIGHT RESIST CONTINUING THE CUTS NEXT YEAR I THINK THE WARNING LIGHTS ARE FLASHING IN TERMS OF MILITARY COMMITMENTS VS OUR CAPABILITIES HE TOLD REPORTERS FRIDAY DISCUSSING THE C17 MILITARY CARGO JET SEN NUNN SAID THE PROGRAM WOULD HAVE BEEN IN MORE DIFFICULTY IF AIDES TO DEFENSE SECRETARY LES ASPIN HADN'T ARGUED THAT THE PROGRAM COULD BE FIXED WE HOPE THE C17 PROGRAM WILL GET STRAIGHTENED OUT BUT IT HAS A LONG WAY TO GO HE ADDED ESSENTIALLY THE HOUSE AND SENATE NEGOTIATORS AGREED TO GO ALONG WITH THE PENTAGON'S PLAN TO CONTINUE THE C17 PROGRAM BUT ALSO TO SET A STRICT SERIES OF PERFORMANCE MILESTONES THAT MCDONNELL DOUGLAS MUST MEET TO AVOID TERMINATION OF THE PROGRAM IN EARLY 1997 LAWMAKERS WERE BRIEFED LAST MONTH ON THE PLAN WHICH HASN'T BEEN MADE PUBLIC AS THE FIRST STEP IN THAT PLAN THE BILL WOULD GIVE THE PENTAGON 221 BILLION TO CONTINUE THE PROGRAM AND PURCHASE AS MANY AS SIX C17S IN 1994 IF THE COMPANY DOES WELL BUT AS FEW AS FOUR IF QUALITY PROBLEMS CONTINUE TO PLAGUE THE PROGRAM THE BILL ALSO WOULD GIVE THE PENTAGON 100 MILLION TO LOOK INTO BUYING OTHER FREIGHTER JETS IN CASE THE C17 PROGRAM ISN'T REMEDIED OR IS REMEDIED BUT BECOMES SIMPLY UNAFFORDABLE SEN NUNN SAID MILITARY AND INDUSTRY OFFICIALS SAY GOVERNMENT INTEREST HAS FOCUSED ON SEATTLEBASED BOEING CO'S PROPOSAL TO SELL AS MANY AS 33 747 FREIGHTERS FOR 4 BILLION TO 5 BILLION BUT OFFICIALLY THE AIR FORCE ALSO IS CONSIDERING BUYING OR LEASING OTHER TYPES OF COMMERCIAL AND MILITARY AIR FREIGHTERS SUCH AS NEWER MCDONNELL DOUGLAS MD11 JETS OR OLDER DC10S OR LOCKHEED CORP C5S SETTLING ANOTHER MAJOR ACQUISITION QUESTION HOUSE AND SENATE NEGOTIATORS AGREED TO SPLIT THE DIFFERENCE BETWEEN THEIR BILLS AND AUTHORIZE THE PURCHASE OF 12 F16 FIGHTERS IN FISCAL 1994 WHICH BEGAN OCT 1 THE F16 IS BUILT AT A PLANT IN FORT WORTH TEXAS NOW OPERATED BY LOCKHEED UNDER THE PENTAGON'S OVERALL AIRCRAFT ACQUISITION PLAN THOSE WILL BE THE LAST F16S THE US BUYS THE BILL ALSO WOULD PROVIDE ABOUT 33 BILLION FOR DEFENSE CONVERSION AND TRANSITION PROGRAMS IT INCLUDES ALMOST 200 MILLION IN AID TO THE SHIPBUILDING INDUSTRY WITH 147 MILLION TO FUND EXPORTLOAN GUARANTEES AND 50 MILLION FOR PENTAGON RESEARCH IN ADVANCED SHIPBUILDING TECHNIQUES THE NEGOTIATORS ALSO PROVIDED 25 MILLION FOR LOAN GUARANTEES IN SUPPORT OF WEAPONS EXPORTS TO US ALLIES WORRIED BY THE PROLIFERATION OF HIGHTECH WEAPONS AND BY THE THOUGHT THAT US DEFENSE COMPANIES WOULD ATTEMPT TO RELY ON INCREASED EXPORTS TO AVOID SHRINKING THE ADMINISTRATION HAD OPPOSED THAT PROVISION THE BILL NOW GOES TO THE HOUSE AND SENATE FOR FINAL CONGRESSIONAL APPROVAL WHICH IS EXPECTED IT THEN WOULD REQUIRE PRESIDENT CLINTON'S SIGNATURE FOR ENACTMENT 9311080105 931108 BUSINESS BRIEF KOLL REAL ESTATE GROUP INC LAKE SUPERIOR LAND CO UNIT SOLD TO BIGGEST SHAREHOLDER KOLL REAL ESTATE GROUP INC NEWPORT BEACH CALIF SAID IT SOLD ITS LAKE SUPERIOR LAND CO UNIT TO ITS LARGEST SHAREHOLDER IN A SERIES OF TRANSACTIONS FOR ABOUT 53 MILLION IN NOTES THE SHAREHOLDER LIBRA INVEST & TRADE LTD A VIRGIN ISLANDSBASED COMPANY OWNED BY INVESTOR TOUFIC ABOUKHATER WILL TURN IN 424 MILLION IN KOLL REAL ESTATE SENIOR SUBORDINATED DEBENTURES AND PROVIDE KOLL REAL ESTATE WITH PROCEEDS FROM THE SALE OF 34 MILLION OF ITS SHARES THAT MR ABOUKHATER HOLDS THE COMPANY ALSO AGREED TO SWAP 34 MILLION SHARES WITH LIBRA FOR 106 MILLION IN NOTES FROM ANOTHER KOLL REAL ESTATE SUBORDINATED DEBENTURE ISSUE HELD BY LIBRA LIBRA'S 149 EQUITY STAKE IN KOLL REAL ESTATE THEREFORE WILL REMAIN THE SAME THE ELIMINATION OF THE DEBT TO LIBRA REDUCES KOLL REAL ESTATE'S TOTAL BOND DEBT TO ABOUT 137 MILLION KOLL REAL ESTATE ALSO SAID IT COMPLETED THE SALE OF CERTAIN OFFICE BUILDINGS IN LA JOLLA CALIF FOR 10 MILLION AND USED THE PROCEEDS TO RETIRE BANK DEBT 9311080104 931108 TECHNOLOGY & MEDICINE FDA GIVES FORMAL APPROVAL TO DRUG THAT BOOSTS MILK PRODUCTION IN COWS BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FOOD AND DRUG ADMINISTRATION GAVE ITS FORMAL APPROVAL TO A DRUG THAT INCREASES THE PRODUCTION OF MILK IN COWS BOVINE SOMATOTROPIN A GROWTH HORMONE THAT SUPPLEMENTS A COW'S NATURAL HORMONE WAS ALREADY DETERMINED SAFE BY THE AGENCY'S VETERINARY MEDICINE ADVISORY COMMITTEE IN APRIL IT IS THE FIRST MAJOR BIOTECHNOLOGY DEVELOPED FOR AGRICULTURE MONSANTO CO OF ST LOUIS SAID IT WILL MARKET THE DRUG UNDER THE NAME POSILAC THE DRUG WHICH UNDERWENT EXTENSIVE SCIENTIFIC AND GOVERNMENT TESTING WAS FOUND NOT TO CHANGE THE NUTRITIONAL VALUE OF MILK OR MEAT THERE IS VIRTUALLY NO DIFFERENCE IN MILK FROM TREATED AND UNTREATED COWS IN FACT IT'S NOT POSSIBLE USING CURRENT SCIENTIFIC TECHNIQUES TO TELL THEM APART WE HAVE LOOKED CAREFULLY AT EVERY SINGLE QUESTION RAISED AND WE ARE CONFIDENT THIS PRODUCT IS SAFE FOR CONSUMERS FOR COWS AND FOR THE ENVIRONMENT FDA COMMISSIONER DAVID KESSLER SAID IN A STATEMENT BUT CONSUMER GROUPS THAT OPPOSE BIOTECHNOLOGY SAID THEY WILL FIGHT THE DISTRIBUTION OF THE DRUGTREATED PRODUCTS THEY HAVE MAINTAINED SINCE THE MID1980S THAT THE HEALTH EFFECTS OF THE BOVINE GROWTH HORMONE ARE POORLY UNDERSTOOD SUCH GROUPS ALSO OBJECT TO THE FACT THAT THE FDA HAS DECIDED THERE WILL BE NO ADDITIONAL LABELING REQUIREMENTS FOR FOOD PRODUCED FROM TREATED COWS COMPANIES MAY VOLUNTARILY LABEL PRODUCTS AS LONG AS THE LABELING ISN'T MISLEADING OR UNTRUTHFUL THERE HAD BEEN CONCERN THAT THE SUPPLEMENTAL HORMONE SLIGHTLY INCREASED THE OCCURRENCE OF MASTITIS AN INFECTION OF A COW'S UDDER HOWEVER THE ADVISORY PANEL CONCLUDED THAT MILK FROM TREATED COWS IS STILL SAFE BECAUSE CURRENT TESTING BY STATES MONITORS THE LEVELS OF ANTIBIOTICS ADMINISTERED TO COWS MONSANTO HAS ALSO AGREED TO CONDUCT ITS OWN POSTAPPROVAL MONITORING PROGRAM TO ENSURE THE SAFETY OF MILK ALTHOUGH FORMAL APPROVAL CAME ON FRIDAY MONSANTO MAY NOT SELL THE DRUG FOR 90 DAYS UNDER A MORATORIUM THAT WAS INCLUDED IN THE FEDERAL BUDGET WITH THE SUPPORT OF SEN RUSS FEINGOLD D WIS WHO FEARS THAT HIGHER MILK PRODUCTIVITY WILL HURT SMALL DAIRY FARMERS THIS PRODUCT IS GOING TO ACCELERATE THE PROCESS THAT IS ALREADY RESULTING IN THOUSANDS OF FAMILY FARMERS BEING FORCED OFF THEIR LAND SEN FEINGOLD SAID IN A STATEMENT DURING THE MORATORIUM THE GOVERNMENT WILL STUDY THE BUDGETARY SOCIAL AND ECONOMIC EFFECTS OF THE DRUG AND REPORT TO CONGRESS IN 45 DAYS 9311080103 931108 BUSINESS BRIEF WAXMAN INDUSTRIES INC COMPANY IS ASKING CONSENTS FROM HOLDERS OF NOTE ISSUES WAXMAN INDUSTRIES INC SAID IT BEGAN SOLICITING CONSENTS FROM HOLDERS OF TWO NOTE ISSUES TO RESOLVE A DEFAULT AND MAKE CERTAIN AMENDMENTS THE BEDFORD HEIGHTS OHIO HOME REPAIR AND REMODELING CONCERN DEFAULTED ON ITS SENIOR SECURED NOTES JUNE 30 AFTER POSTING AN ANNUAL LOSS OF 292 MILLION OR 251 A SHARE WHICH INCLUDED AN 89 MILLION CHARGE THAT PUSHED ITS RATIO OF OPERATING CASH FLOW TO INTEREST BELOW A CERTAIN LEVEL CAUSING THE DEFAULT THE COMPANY IS SEEKING TO PRECLUDE THE FISCAL 1993 RESULTS FROM BEING INCLUDED IN THE NOTES' COVENANTS IN THE FUTURE THE ISSUES INVOLVED ARE WAXMAN'S SENIOR SECURED NOTES OF WHICH THERE ARE 392 MILLION OUTSTANDING AND ITS SENIOR SUBORDINATED NOTES OF WHICH THERE ARE 988 MILLION OUTSTANDING 9311080102 931108 HERE'S LOTS OF YUCK JUST WAITING TO FALL FACE DOWN ON THE CARPET BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL PEANUT PA EVEN PEANUTBUTTER LOVERS GAGGED HOPING TO STICK AMERICA'S FAVORITE SANDWICH SPREAD ONTO MORE PALATES AND PUT THIS DINKY HAMLET NEAR PITTSBURGH ONTO MORE MAPS THE PEANUT ADVISORY BOARD AN ATLANTABASED GROWERS' GROUP SET OUT TO MAKE THE WORLD'S LARGEST PEANUTBUTTERANDJELLY SANDWICH HELPED BY LOCAL HIGHSCHOOL STUDENTS THE RECORD SEEKERS SLATHERED 50 POUNDS OF HOMEMADE GRAPE JELLY AND 75 POUNDS OF REESE'S PEANUT BUTTER ONTO A 37FOOT8INCH LENGTH OF BREAD THAT WAS BAKED INCH BY INCH IN A CONVEYORBELT OVEN AT A NEARBY PIZZA HUT STARTING AT 2 AM SATURDAY THE FOOTWIDE BREAD WAS SUPPOSED TO HAVE BEEN 40 FEET LONG BUT THE DOUGH SHRANK MORE THAN EXPECTED DURING BAKING THE TRICK WAS KEEPING THE BREAD IN ONE PIECE SO AS TO QUALIFY AS THE FIRST ENTRY IN THE LARGEST PEANUTBUTTERANDJELLYSANDWICH CATEGORY OF THE GUINNESS BOOK OF WORLD RECORDS THE PIZZA HUT HAD TO REMOVE ITS FRONT WINDOW IN ORDER TO PASS THE BREAD SAFELY INTO A 50FOOT MOVING VAN THE VAN THEN TOOK IT UNDER POLICE ESCORT TO A PEANUTBUTTER FESTIVAL AT THE TOWN'S HIGHSCHOOL GYMNASIUM THE SANDWICH SLATED FOR DONATION TO A LOCAL FOOD BANK WASN'T ON THE MENU INSTEAD THE 500 PEANUTBUTTER DEVOTEES AND OTHER FOLKS WHO CAME TO GAWK GORGED ON WHAT ELSE IN BETWEEN MOUTHFULS OF COOKIES CANDY SANDWICHES A SHRIMP DISH AND BARBECUE SAUCE ALL MADE WITH PEANUT BUTTER THEY PROFESSED THEIR LOVE FOR THE STUFF ON ICE CREAM PINEAPPLE RINGS SARDINES AND BANANAS BUT THERE WAS A LIMIT REALLY THE PEANUT BUTTER AND RELISH IS ENOUGH TO MAKE YOU HURL SAID DORA ALSIPPI A NURSE NEAR THE BASKETBALL FREETHROW LINE ANOTHER WOMAN WHO WAS PEERING WARILY INTO A STEAMING TUB OF VEGETABLES SOPPED IN PEANUT BUTTER ASKED WHOSE IDEA WAS THIS CATERINGTEAM MEMBER TOM UPHOLSTER'S RESPONSE I DON'T KNOW A SICK PERSON A VERY SICK PERSON PEANUT BUTTER ALREADY IN 80 OF US HOMES PROBABLY WON'T GET MORE POPULAR AS A RESULT OF SATURDAY'S FESTIVITIES BUT PEANUT THE LARGEST OF FOUR TOWNS IN THE US BY THAT NAME IT HAS 149 RESIDENTS COMPARED WITH 35 IN PEANUT CALIF WILL BE EASIER TO FIND NAMED FOR THE PEANUTSIZED PIECES OF COAL THAT CAME FROM ITS MINES IN THE EARLY 1900S THE TOWN NOW HAS SIGNS AT EITHER END WELCOME TO PEANUT PENNSYLVANIA WE'RE NUTS ABOUT YOU 9311080101 931108 ROBERT HALF DEBT REDEMPTION MENLO PARK CALIF ROBERT HALF INTERNATIONAL INC SAID IT CALLED FOR REDEMPTION ALL 226 MILLION OF ITS OUTSTANDING 725 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2012 THE REDEMPTION DATE IS DEC 10 WITH A REDEMPTION PRICE OF 105498 INCLUDING ACCRUED INTEREST FOR EACH 1000 PRINCIPAL AMOUNT OF DEBENTURES 9311080100 931108 WHO'S NEWS MAXICARE HEALTH PLANS INC MAXICARE HEALTH PLANS INC LOS ANGELES FIORENZA COURTWRIGHT WAS NAMED A CLASS II DIRECTOR OF THIS MANAGED HEALTHCARE COMPANY EXPANDING THE BOARD TO SEVEN MEMBERS MS COURTWRIGHT IS A FOUNDING LIMITED PARTNER OF BAINCO INTERNATIONAL INVESTORS LP AND FORMER COOWNER OF THE BEVERLY WILSHIRE HOTEL AND THE BEVERLY HILLS HOTEL 9311080099 931108 DIVIDEND NEWS SUNAMERICA INC SUNAMERICA INC LOS ANGELES A FINANCIAL SERVICES CONCERN SPECIALIZING IN THE RETIREMENT SAVINGS MARKET BOOSTED ITS QUARTERLYCASH DIVIDEND TO 10 CENTS A COMMON SHARE FROM SEVEN CENTS A SHARE PAYABLE NOV 25 TO HOLDERS OF RECORD NOV 17 THE COMPANY ALSO RAISED THE QUARTERLY DIVIDEND ON ITS NONTRANSFERABLE CLASS B STOCK TO NINE CENTS FROM 63 CENTS IT DECLARED REGULAR DIVIDENDS ON SEVERAL PREFERRED ISSUES THE COMPANY SAID LAST WEEK IT EXPECTS TO REPORT A 53 INCREASE IN PERSHARE EARNINGS FOR THE YEAR ENDED SEPT 30 SUNAMERICA FORMERLY WAS BROAD INC 9311080098 931108 UAL MAY HALT SALE OF KITCHENS IF UNION ACTS AIRLINE WANTS MACHINISTS TO TAKE WAGE CUTS RESCUE BUYOUT TALKS BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UAL CORP TRYING TO SAVE ITS CRITICAL LABORCONCESSION TALKS FROM COLLAPSE OFFERED ITS MACHINISTS' UNION A PROPOSAL THAT COULD EFFECTIVELY REMOVE THE DEADLINE ON THE NEGOTIATIONS THE PARENT COMPANY OF UNITED AIRLINES SAID IT SENT A LETTER FRIDAY TO THE INTERNATIONAL ASSOCIATION OF MACHINISTS SAYING IT WOULD BACK OUT OF THE SALE OF ITS CATERING BUSINESS WHICH THE UNIONS HAD VIGOROUSLY OPPOSED IF THE UNION QUICKLY ACCEPTS CONTRACT REVISIONS THAT WOULD LOWER THE COST OF OPERATING THE FLIGHT KITCHENS THE PROPOSAL IF RATIFIED BY THE MACHINISTS WOULD EXTRICATE UNITED FROM A STICKY SITUATION WHILE SALVAGING LABOR NEGOTIATIONS THAT COULD PROVIDE IT WITH BILLIONS OF DOLLARS IN COST SAVINGS FOR SEVERAL MONTHS UAL HAS BEEN IN TALKS WITH A UNION COALITION INCLUDING ITS PILOTS AND MACHINISTS GROUPS THAT WANTS TO ACQUIRE A MAJORITY STAKE IN THE COMPANY IN EXCHANGE FOR SOME 4 BILLION IN WAGE BENEFIT AND WORKRULE CONCESSIONS PARTLY TO HASTEN A CONCLUSION TO THOSE TALKS UAL IN SEPTEMBER SIGNED AN AGREEMENT TO SELL SOME OF ITS FLIGHTKITCHEN OPERATIONS WHICH EMPLOY ABOUT 5000 MACHINIST UNION MEMBERS THROWING THE UNIONS A BONE UAL SAID IT WOULDN'T JETTISON THE CATERING UNITS OR THEIR EMPLOYEES IF THE UNIONS REACHED AN AGREEMENT ON ACQUIRING A STAKE IN THE COMPANY BY NOV 13 THE UNION COALITION HAS BEEN NEGOTIATING AGAINST THAT DEADLINE TO PRESERVE THE JOBS LAST WEEK UAL AND THE UNION COALITION WORKED INTENSELY TOWARD AN AGREEMENT BUT THE TALKS STALLED THURSDAY AS THE PARTIES RECESSED LEAVING THE WHOLE TRANSACTION TWISTING IN THE WIND LAST FRIDAY UAL SEEKING TO REVIVE THE BUYOUT NEGOTIATIONS OFFERED TO BACK OUT OF THE FLIGHTKITCHEN SALE BUT TO DO SO IT REQUIRED THE MACHINISTS TO ACCEPT AND RATIFY BY THIS FRIDAY NEW CONTRACT PROVISIONS THAT WOULD CUT WAGES BY 15 REDUCE CERTAIN BENEFITS AND CHANGE WORK RULES TO MAKE EMPLOYEES MORE PRODUCTIVE UNITED SAID ITS PROPOSAL STILL WOULD PROVIDE THE KITCHEN EMPLOYEES WITH A PACKAGE OF PAY AND BENEFITS THAT IT CALLED THE BEST IN THE AVIATION CATERING INDUSTRY AND UNITED SAID IT WOULD AGREE TO A NEW SEVENYEAR CONTRACT THAT WOULD GUARANTEE JOBS FOR ALL CURRENT CATERING EMPLOYEES OVER THE SEVENYEAR PERIOD THE COMPANY SAID IT WOULDN'T SELL UNITED'S 11 MAJOR KITCHENS AND WOULD PROVIDE CURRENT CATERING EMPLOYEES WITH NOFURLOUGH GUARANTEES THE MACHINISTS UNION SAID IT WAS REVIEWING THE PROPOSAL AND PLANNED TO MEET WITH UAL OFFICIALS TODAY TO DISCUSS IT 9311080097 931108 LAWYERS TITLE CORP ACQUISITION RICHMOND VA LAWYERS TITLE CORP SIGNED AN AGREEMENT TO ACQUIRE LTCO INC TERMS WEREN'T DISCLOSED BUT THE COMPANY SAID IT EXPECTS TO CLOSE THE TRANSACTION BY A WEEK FROM TODAY LAWYERS TITLE SAID LTCO WILL BE RENAMED LAWYERS TITLE OF NORTH CAROLINA INC AND OPERATE AS A UNIT OF LAWYERS TITLE CORP LTCO OF NORTH CAROLINA SELLS TITLE INSURANCE 9311080096 931108 INTERNATIONAL JAPAN'S OZAWA REPORTEDLY TIED TO PAYMENTS ISSUE MAY HURT COALITION AS IT ATTEMPTS TO PUSH POLITICAL REFORM PLANS BY JACOB M SCHLESINGER AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN'S REFORMIST RULING COALITION HAS BEEN BRUSHED WITH THE HINT OF SCANDAL AS JAPANESE NEWS ORGANIZATIONS REPORTED THAT A KEY GOVERNMENT FIGURE RECEIVED MONEY FROM A MAJOR CONSTRUCTION COMPANY SEVERAL JAPANESE NEWSPAPERS AND TELEVISION STATIONS REPORTED FRIDAY THAT ICHIRO OZAWA THE CHIEF STRATEGIST OF THE RULING SEVENPARTY ALLIANCE WAS GIVEN FIVE MILLION YEN 46000 LAST DECEMBER BY SHINJI KIYOYAMA A VICE PRESIDENT OF KAJIMA CORP MR KIYOYAMA KNOWN FOR HIS EXTENSIVE POLITICAL CONTACTS WAS ARRESTED LAST MONTH ON UNRELATED SUSPICIONS OF BRIBING OFFICIALS OF LOCAL GOVERNMENTS NORTH OF TOKYO TO WIN PUBLICWORKS CONTRACTS A SPOKESMAN FOR MR OZAWA SAID THE POLITICIAN WAS EXAMINING THE RECORDS OF HIS CAMPAIGN ORGANIZATIONS TO SEE IF THE REPORTS WERE ACCURATE AND WOULD MAKE PUBLIC HIS FINDINGS AS SOON AS THIS WEEK A KAJIMA SPOKESMAN DECLINED TO COMMENT EVEN IF THE REPORTS ARE TRUE MR OZAWA DIDN'T NECESSARILY COMMIT ANY WRONGDOING UNDER JAPANESE POLITICAL FUNDRAISING LAWS A POLITICIAN CAN RECEIVE A MAXIMUM OF 15 MILLION YEN A YEAR FROM AN INDIVIDUAL OR A CORPORATION BUT HIS POLITICAL ORGANIZATIONS CAN RECEIVE LARGER AMOUNTS THE LEGALITY OF THE REPORTED KAJIMA DONATIONS WOULD DEPEND ON HOW THE MONEY WAS ALLOCATED AND HOW IT WAS USED STILL THE PROMINENTLY PLAYED REPORTS COULD MAKE TROUBLE FOR THE GOVERNMENT AT A PARTICULARLY DELICATE TIME PUBLIC DISGUST IS RISING OVER THE CLOSE TIES BETWEEN POLITICIANS AND CONSTRUCTION COMPANIES FUELED BY A WIDENING INVESTIGATION BY THE TOKYO DISTRICT PUBLIC PROSECUTORS OFFICE THE REVELATION OF LARGE CONTRIBUTIONS FROM CONTRACTORS TO COALITION MEMBERS EVEN IF LEGAL MAY SOIL THE IMAGE OF THE GOVERNMENT WHICH TOOK OFFICE PLEDGING TO CLEAN UP THE NATION'S ENDEMIC POLITICAL CORRUPTION MR OZAWA IS ONE OF THE PRIME MOVERS BEHIND THE COALITION'S CAMPAIGN TO PASS LAWS THAT WOULD REFORM JAPAN'S ELECTORAL SYSTEM THE GOVERNMENT AND THE OPPOSITION LIBERAL DEMOCRATIC PARTY ARE NEGOTIATING TO RESOLVE DIFFERENCES OVER THE ISSUE PRIME MINISTER MORIHIRO HOSOKAWA HOPES TO PASS THE SWEEPING REFORMS THROUGH THE LOWER HOUSE OF PARLIAMENT BY THE MIDDLE OF THIS MONTH AFTER THE REPORTS OF THE KAJIMA DONATIONS THE OPPOSITION COMMUNIST PARTY CALLED FOR MR OZAWA TO GIVE PUBLIC TESTIMONY ABOUT THE KAJIMA MATTER NEWS REPORTS QUOTED ONE MEMBER OF THE SOCIALIST PARTY THE LARGEST BLOCK IN THE RULING COALITION AS SAYING HE SUPPORTS SUCH A MOVE PARLIAMENTARY HEARINGS ON MR OZAWA'S FINANCES COULD UPSET THE DELICATE LEGISLATIVE TIMETABLE FOR POLITICAL REFORM AND OTHER ISSUES THE LATEST NEWS HIGHLIGHTS THE PROBLEM MR OZAWA HAS POSED FOR MR HOSOKAWA SINCE THE NEW GOVERNMENT TOOK OFFICE THREE MONTHS AGO MR OZAWA WAS INSTRUMENTAL IN THE FORMATION OF THE HOSOKAWA ADMINISTRATION BOTH BY LEADING A GROUP OF DEFECTORS OUT OF THE THENRULING LIBERAL DEMOCRATIC PARTY AND BY COORDINATING THE NEGOTIATIONS THAT STITCHED TOGETHER THE COALITION MR OZAWA HAS NO FORMAL CABINET POSITION HIS ONLY TITLE IS SECRETARYGENERAL OF THE JAPAN RENEWAL PARTY THE SECONDLARGEST PARTY IN THE COALITION BUT HE IS CONSIDERED THE MASTERMIND BEHIND MANY OF THE GOVERNMENT'S INITIATIVES FROM POLITICAL REFORM TO TAX REFORM TO ATTACKING THE BUREAUCRACY A BOOK OUTLINING HIS VISION HAS BEEN ON THE BESTSELLER LIST FOR MONTHS YET MR OZAWA WAS ALSO AT THE CENTER OF POWER IN THE OLD CORRUPTIONRIDDEN LDP HE HAS NEVER BEEN DIRECTLY LINKED WITH ANY SCANDALS BUT TO MANY JAPANESE HE IS GUILTY BY ASSOCIATION MR OZAWA WAS THE PROTEGE OF ONETIME LDP BOSS SHIN KANEMARU WHO IS NOW ON TRIAL ON CHARGES OF TAX EVASION MR OZAWA WAS ALSO ONE OF THE LDP'S MOST SKILLED FUNDRAISERS ESPECIALLY FROM CONSTRUCTION COMPANIES WEEKEND EDITORIAL CARTOONS LAMPOONED MR OZAWA'S PREDICAMENT THE ASAHI SHIMBUN NEWSPAPER FEATURED A DRAWING OF MR OZAWA AND MR KANEMARU DRESSED IN TUXEDOS STANDING IN FRONT OF KAJIMA'S HEADQUARTERS WITH THE CAPTION REUNITED AT LAST A SANKEI SHIMBUN CARTOON SHOWED ONE CARICATURE OF MR OZAWA READING A PASSAGE FROM HIS BESTSELLING BOOK TO ANOTHER OZAWA FIGURE THE FLOW OF MONEY TO POLITICIANS SHOULD BE MADE COMPLETELY CLEAR SINCE SUMMER MORE THAN 20 LOCAL GOVERNMENT OFFICIALS AND CONSTRUCTION COMPANY EXECUTIVES HAVE BEEN ARRESTED ON CHARGES OF TAKING AND GIVING BRIBES FOR PUBLIC WORKS NO NATIONAL POLITICAL FIGURES HAVE BEEN IMPLICATED IN THE AFFAIR BUT THERE'S WIDESPREAD SPECULATION THAT THE PROSECUTORS' PROBE WILL ULTIMATELY REACH THAT LEVEL EARLIER PRESS REPORTS HAVE ALSO LINKED KAJIMA'S MR KIYOYAMA TO TOP LDP OFFICIALS 9311080095 931108 BUSINESS BRIEF ENVIROTEST SYSTEMS CORP EMISSIONS PACT CONSIDERED FOR NEW YORK STATE REGION ENVIROTEST SYSTEMS CORP SAID IT WON THE RIGHT TO NEGOTIATE A CONTRACT WITH NEW YORK STATE TO BE THE EXCLUSIVE AUTOEMISSIONS TESTING SERVICE FOR THE DOWNSTATE REGION WHICH THE COMPANY SAID WOULD RESULT IN ANNUAL REVENUE OF 77 MILLION AND BE VALUED AT ABOUT 475 MILLION OVER THE SEVEN YEARS OF THE CONTRACT ENVIROTEST WOULD ACQUIRE PROPERTY FOR 37 TESTING CENTERS IN THE REGION WHICH INCLUDES NEW YORK CITY THE COMPANY ALSO WOULD BUILD EQUIP AND STAFF THE CENTERS MOTORISTS WOULD BE REQUIRED TO GO TO A CENTER EVERY TWO YEARS AND RECEIVE A TEST COSTING 25 OF WHICH 4 WOULD GO TO THE STATE THE REGION CURRENTLY HAS 58 MILLION MOTORISTS THE TUCSON ARIZ COMPANY SAID 900 JOBS WOULD BE CREATED IN THE REGION LAST MONTH ENVIROTEST WON A SIMILAR CONTRACT FOR PENNSYLVANIA WHICH THE COMPANY VALUED AT 60 MILLION A YEAR STARTING IN 1995 IN NASDAQ STOCK MARKET TRADING FRIDAY ENVIROTEST SHARES CLOSED AT 2250 UP 375 OR 20 9311080094 931108 FOUR EXEXECUTIVES OF TWO FAILED THRIFTS CHARGED WITH FRAUD SAN DIEGO A FEDERAL GRAND JURY INDICTED FOUR FORMER EXECUTIVES OF TWO FAILED THRIFTS FAR WESTERN BANK AND IMPERIAL SAVINGS ON CHARGES OF BANK FRAUD AND TAX EVASION THE 31COUNT INDICTMENT CHARGES RICHARD L BURNS 58 YEARS OLD HIS WIFE JOYCE BURNS 57 WHO OWNED FAR WESTERN BANK AND DAVID WATT WHO WAS CHIEF OPERATING OFFICER OF THE BANK THE INDICTMENT CHARGES THEM WITH DEFRAUDING THE BANK BY FUNNELING INSURANCE COMMISSIONS FROM RISKY AUTO LOANS TO THEMSELVES THROUGH A SEPARATE BUSINESS NETWORK AND BRIBING AN EXECUTIVE OF THE NOWDEFUNCT IMPERIAL CORP'S THRIFT UNIT IN A SCHEME TO HIDE THESE COMMISSIONS WHICH TOTALED ABOUT 10 MILLION THE EXECUTIVE ROCCO J FABIANO 37 ALSO WAS INDICTED HE WAS CHARGED WITH ACCEPTING 50000 AND A BMW CAR FOR PARTICIPATING IN THE SCHEME SAN DIEGOBASED IMPERIAL WHICH AT ONE TIME HAD ASSETS OF 10 BILLION WAS SEIZED BY FEDERAL REGULATORS IN 1990 FAR WESTERN BASED IN TUSTIN CALIF COLLAPSED LATER THAT YEAR CRIPPLED BY FAILED JUNK BONDS AND CONSUMER LOANS MR BURNS WAS FORMERLY CHAIRMAN OF NUCORP ENERGY INC AN OIL AND GAS EXPLORATION COMPANY THAT COLLAPSED IN 1982 HE WAS ISSUED INJUNCTIONS FROM SECURITIESLAW VIOLATIONS IN CONNECTION WITH HIS MANAGEMENT OF THE COMPANY THE ATTORNEY FOR THE BURNSES WILLIAM GRAUER SAID MR BURNS INTENDS TO VIGOROUSLY DEFEND AGAINST THESE FALSE CHARGES HE CALLED THE CHARGES AGAINST MRS BURNS OUTRAGEOUS AND FRIVOLOUS ATTORNEYS FOR THE OTHER DEFENDANTS COULDN'T BE REACHED FOR A COMMENT 9311080093 931108 BID TO AMEND CONSTITUTION IS CRITICIZED BY PRESIDENT WASHINGTON PRESIDENT CLINTON TOLD CONGRESSIONAL LEADERS THAT A PROPOSED CONSTITUTIONAL AMENDMENT IS BAD ECONOMICS WHILE I AM DEEPLY COMMITTED TO BRINGING DOWN OUR NATION'S DEFICIT THIS PROPOSED BALANCEDBUDGET AMENDMENT WOULD NOT SERVE THAT END MR CLINTON SAID IN A LETTER TO HOUSE SPEAKER THOMAS FOLEY IT WOULD PROMOTE POLITICAL GRIDLOCK AND WOULD ENDANGER OUR ECONOMIC RECOVERY TO ASSUAGE BUDGETCONSCIOUS LAWMAKERS MR CLINTON CREATED A 30MEMBER BIPARTISAN COMMISSION HEADED BY SEN BOB KERREY D NEB AND SEN JOHN DANFORTH R MO TO RECOMMEND WAYS TO REDUCE THE DEFICIT BY REFORMING GOVERNMENT BENEFIT PROGRAMS AND BY CHANGING THE TAX CODE HE ASKED THE PANEL TO FINISH BY MAY 1 TWENTY OF THE PANELISTS ARE TO BE MEMBERS OF CONGRESS EVENLY DIVIDED BETWEEN THE PARTIES SEN KERREY RELUCTANTLY CAST THE DECIDING VOTE IN THE SENATE EARLIER THIS YEAR THAT ENABLED MR CLINTON'S DEFICITREDUCTION PLAN TO PASS HE IS A LEADER AMONG LAWMAKERS WHO ARE PUSHING FOR MORE DEFICIT REDUCTION 9311080092 931108 MEDICINE ONE OF THE MAIN ENIGMAS OF ALZHEIMER'S DISEASE IS SAID TO BE UNTANGLED BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RESEARCHERS SAY THEY HAVE DISCOVERED AN UNDERLYING CAUSE FOR ALZHEIMER'S DISEASE POSSIBLY SOLVING ONE OF MEDICINE'S MOST BAFFLING MYSTERIES AT A SCIENTIFIC MEETING YESTERDAY RUN BY THE NATIONAL INSTITUTE OF AGING SCIENTISTS FROM DUKE UNIVERSITY MEDICAL CENTER UNVEILED A NOVEL EXPLANATION FOR ABOUT 60 OF ALZHEIMER'S CASES IN PRESENTATIONS TO SCIENTISTS AND DOCTORS HERE THE RESEARCHERS PRODUCED EVIDENCE THAT A BLOOD PROTEIN SETS OFF A CHEMICAL CASCADE DEEP INSIDE BRAIN CELLS CAUSING THEM TO COLLAPSE AND DISINTEGRATE AND LEADING TO LOSS OF MEMORY AND MENTAL FUNCTIONING AND TO DEATH MANY NEUROSCIENTISTS HERE FOR THE ANNUAL GATHERING OF THE SOCIETY FOR NEUROSCIENCE CROWDED INTO A DOWNTOWN HOTEL BALLROOM TO HEAR THE DUKE REPORTS THE THEORY IS CERTAIN TO TRIGGER CONTROVERSY HOWEVER BECAUSE IT OVERTHROWS PREVAILING NOTIONS ABOUT THE DISEASE THE DUKE THEORY IS BASED ON TESTTUBE EXPERIMENTS IMPLICATING THE ABSENCE OF A GENE IN THE DISTINTEGRATION OF NERVE CELLS THAT MARKS ALZHEIMER'S WHICH AFFECTS FOUR MILLION AMERICANS IT RAISES THE POSSIBILITY THAT THE MISSING GENE MIGHT BE COMPENSATED FOR BY MEDICATION ALREADY ONE LARGE DRUG MAKER IS NEGOTIATING A COLLABORATION AND LICENSING AGREEMENT WITH DUKE UNIVERSITY IT'S EXCITING IT'S VERY EXCITING SAYS ZAVEN KHACHATURIAN HEAD OF ALZHEIMER'S DISEASE RESEARCH AT THE GOVERNMENT'S INSTITUTE OF AGING IF IT PROVES TRUE IT PROVIDES A REASONABLE EXPLANATION FOR WHAT HAPPENS IN THE BRAINS OF MANY ALZHEIMER'S PATIENTS AND IMPORTANTLY A WAY TO STOP THAT PROCESS DR KHACHATURIAN SAYS SUCH A TREATMENT ASIDE FROM PREVENTING THE PERSONAL DEVASTATION OF ALZHEIMER'S COULD CUT MUCH OF THE 100 BILLION ANNUALLY SPENT IN THE US TO TREAT AGERELATED DEMENTIA TO SPUR THE DRUG SEARCH THE ALZHEIMER'S ASSOCIATION A NONPROFIT CHICAGOBASED PATIENTSUPPORT GROUP LAST WEEK SET UP SEVERAL PRIVATE MEETINGS BETWEEN KEY MEMBERS OF CONGRESS AND ALLEN D ROSES HEAD OF THE DUKE RESEARCH TEAM SEVERAL RENOWNED RESEARCHERS SAY IT IS TOO EARLY TO GET EXCITED BY THE THEORY SINCE IT IS BASED ON PRELIMINARY EXPERIMENTS THAT MUST BE REPLICATED ELSEWHERE I DON'T THINK IT WILL TURN OUT TO BE THE UNDERLYING CAUSE FOR ALZHEIMER'S SAYS DENNIS SELKOE A LEADING ALZHEIMER'S RESEARCHER AT HARVARD SCHOOL OF MEDICINE ONLY LAST YEAR THE DUKE TEAM SHOOK THE ALZHEIMER'S RESEARCH COMMUNITY WHEN IT FIRST REPORTED A LINK BETWEEN THE DISEASE AND THE BLOOD PROTEIN WHICH PREVIOUSLY WAS KNOWN ONLY FOR CARRYING CHOLESTEROL IN AND OUT OF CELLS IN A SERIES OF STUDIES THE DUKE SCIENTISTS HAD SHOWED THAT PEOPLE WHO INHERIT A SPECIFIC VARIATION OF THE PROTEIN HAVE A SHARPLY HIGHER THAN USUAL RISK OF DEVELOPING ALZHEIMER'S WHEN THE CONNECTION WAS REPORTED IN SCIENTIFIC MEETINGS LATE LAST YEAR IT DREW THE SCIENTIFIC VERSION OF A BRONX CHEER THAT WAS BECAUSE THE LINK HAD NEVER EVEN BEEN HINTED AT BY ANY OF THE WORLD'S FOREMOST ALZHEIMER'S SCIENTISTS AT FIRST THE LINK DIDN'T SEEM RIGHT IT WAS HARD TO BELIEVE SAYS LEON THAL DIRECTOR OF ALZHEIMER'S RESEARCH AT THE VETERANS AFFAIRS MEDICAL CENTER SAN DIEGO BUT IN RECENT MONTHS A FLURRY OF SCIENTIFIC REPORTS HAVE BEEN PRESENTED BY SCIENTISTS AROUND THE WORLD SUPPORTING THE DUKE CLAIM THAT INHERITING PARTICULAR GENETIC VARIANTS OF THE PROTEIN PUTS A PERSON AT HIGH PERIL OF DEVELOPING ALZHEIMER'S DISEASE SOMETIME AFTER AGE 60 SAYS ROBERT TERRY A UNIVERSITY OF SAN DIEGO NEUROSCIENTIST IN JUST A MATTER OF MONTHS THE BLOOD PROTEIN VARIATION HAS BECOME THE MOST IMPORTANT RISK FACTOR WE KNOW FOR GETTING ALZHEIMER'S DISEASE IT'S EXTRAORDINARY WHAT THE DUKE TEAM UNCOVERED AND WHAT OTHERS HAVE SINCE CONFIRMED IS THAT DEVELOPING ALZHEIMER'S DISEASE IS CLOSELY TIED TO WHETHER A PERSON IS BORN WITH OF ONE OF SEVERAL VERSIONS OF THE BLOOD PROTEIN APOE DEPENDING ON WHICH OF THREE DIFFERENT GENES THEY INHERIT MOST PEOPLE ARE BORN WITH ONE OR TWO COPIES OF A GENE CALLED E3 BUT IN A STRIKING STUDY LAST YEAR ANN SAUNDERS AT THE DUKE LAB FOUND THAT IN A RANDOM GROUP OF ALZHEIMER'S PATIENTS MOST HAD ONE OR TWO COPIES OF E4 NOT E3 IN SUBSEQUENT STUDIES SCIENTISTS HAVE FOUND THAT ABOUT 64 OF PEOPLE WITH ALZHEIMER'S DISEASE HAVE AN E4 GENE AS COMPARED WITH ONLY 31 OF PEOPLE WITHOUT THE DISEASE STILL NEITHER DR ROSES NOR ANYONE ELSE SEEMED ABLE TO EXPLAIN EXACTLY HOW A PROTEIN THAT FERRIES FATS AROUND THE BODY IS IMPLICATED IN KILLING NERVE CELLS INVOLVED IN MEMORY AND THINKING UNTIL THE DUKE TEAM'S FINDING LAST YEAR MOST ALZHEIMER'S RESEARCH FOCUSED ON THE FACT THAT PATIENTS' BRAINS ARE LITTERED WITH PLAQUE CONTAINING AN INSOLUBLE STICKY MATERIAL CALLED BETA AMYLOID MANY SCIENTISTS BELIEVED THE PLAQUE WAS KILLING NERVE CELLS AND THAT THE WAY TO PREVENT DISEASE WAS TO BLOCK PLAQUE FORMATION FOR THE PAST FIVE YEARS MUCH BASIC RESEARCH FUNDED BY THE FEDERAL GOVERNMENT WAS AIMED AT CLARIFYING AMYLOID'S ROLE IN ALZHEIMER'S INDEED IN THEIR RESEARCH LAST YEAR DR ROSES'S LAB FOUND THAT APOE PRODUCED BY E4 GENES LATCHED MORE TIGHTLY TO AMYLOID THAN DID E3 FORMS OF THE PROTEIN THAT SUGGESTED THAT IN ADDITION TO TRANSPORTING FATS THE E4 PROTEINS COULD ALSO HELP ACCUMULATE DANGEROUSLY HIGH LEVELS OF AMYLOID IN THE BRAIN PERHAPS OVER TIME KILLING ENOUGH CELLS TO CAUSE DEMENTIA EXCEPT SAYS DR ROSES WE DIDN'T REALLY BUY THE IDEA I'VE BEEN CONVINCED FOR YEARS THAT THE ENTIRE FIELD OF ALZHEIMER'S RESEARCH WAS WRONG TO FOCUS SOLELY ON AMYLOID SO DR ROSES AND HIS COLLEAGUES WARREN STRITTMATTER AND DONALD SCHMECHEL BEGAN PORING THROUGH RESEARCH PAPERS ON APOE SEARCHING FOR NEW CLUES AS UNDERSTOOD BY SCIENTISTS APOE'S MAIN FUNCTION IS TO COMBINE WITH CHOLESTEROL FATS PACKAGED IN THE LIVER AND ELSEWHERE AND FLOAT THEM THROUGH THE BLOODSTREAM TO CELLS THROUGHOUT THE BODY THE PROTEINS DELIVER THEIR CARGO BY OPENING A CHEMICAL DOOR ON THE CELL'S OUTER RIM BUT NOWHERE IN ALL THE VOLUMES OF RESEARCH WAS THERE ANY REFERENCE TO WHAT HAPPENS TO THE PROTEIN AFTER IT UNLOADS ITS FREIGHT WE WANTED TO KNOW WHERE THE PROTEIN GOES ONCE INSIDE THE CELL BECAUSE MAYBE IT WAS THERE THAT IT WAS CAUSING DAMAGE DR STRITTMATER SAYS THE MYSTERY BEGAN TO UNRAVEL WHEN DR STRITTMATTER TESTED WHETHER APOE PLAYED A ROLE IN THE FORMATION OF ANOTHER HALLMARK OF ALZHEIMER'S DISEASE TWISTED BITS OF FILAMENTS CALLED TANGLES LEFT BEHIND WHEN BRAIN NERVE CELLS DIE AN IMPORTANT CLUE SURFACED WHEN IN TESTTUBE STUDIES HE FOUND THAT ONLY THE E3 FORM OF APOE ATTACHED ITSELF TIGHTLY TO A CRITICAL PART OF THE TANGLES A PROTEIN CALLED TAU FORTUNATELY EARLIER RESEARCH ABOUT TAU'S ROLE IN NERVE CELLS PROVIDED THE KEY THE DUKE TEAM NEEDED TO SOLVE THEIR RIDDLE RUNNING THE LENGTH OF NERVE CELLS ARE TUBELIKE TRACKS CALLED MICROTUBULES BY WHICH ALL SORTS OF MOLECULES ARE TRANSPORTED KEEPING ALIVE THE CELL'S OUTER REACHES WHERE BRANCHLIKE ENDINGS TRANSMIT IMPULSES TO NEARBY CELLS SERVING MUCH AS RAILROAD TIES TAU STABILIZES THESE TRACKS BUT THE TRACKS ARE BEING CONTINUOUSLY ASSEMBLED AND DISASSEMBLED BY INTERACTION WITH A MINERAL CALLED PHOSPHATE THAT IS UBIQUITOUS IN THE NERVE CELL TO THEIR ASTONISHMENT THE DUKE RESEARCHERS FOUND THAT THE E3 VERSION OF APOE TACKS ITSELF TO TAU AT PRECISELY THE SAME REGION AS DOES PHOSPHATE THAT WAS THE CRITICAL CLUE DR ROSES SAYS THE DUKE TEAM NOW BELIEVES THAT AFTER DUMPING OFF ITS CHOLESTEROL LOAD THE E3 VERSION OF APOE IS AVAILABLE TO REGULATE PHOSPHATE'S ROLE IN TEARING DOWN THE TRACKS ACCORDING TO THE DUKE THEORY PEOPLE WITH E4 VERSIONS OF APOE WRECK THE TRACKS FASTER THAN PEOPLE WITH THE E3 GENE AS THE TRACKS CRUMPLE THE NERVE CELL SLOWLY DIES AWAY LEAVING ONLY TANGLED TAU WE ARE NOW CONVINCED THAT IT ISN'T THE PRESENCE OF E4 GENE THAT CAUSES THE DISEASE BUT THE ABSENCE OF E3 DR ROSES SAYS OUR VERY STRONG BELIEF IS THAT DRUG COMPANIES CAN DESIGN MEDICINES TO MIMIC E3'S ACTION KEEPING THE TRACK STABLE AND THE NERVE ALIVE DR ROSES CONCEDES THAT CRUCIAL TESTS MUST BE UNDERTAKEN IN LIVING CELLS AND LABORATORY ANIMALS TO CONFIRM THE CLAIM HE FURTHER CONCEDES THAT THE THEORY DOESN'T NECESSARILY ACCOUNT FOR AT LEAST ONETHIRD OF ALZHEIMER'S CASES HARVARD'S DR SELKOE A PRINCIPAL PROPONENT OF THE EXISTING AMYLOID PLAQUE THEORY SAYS THERE ARE NUMEROUS BIOLOGICAL QUESTIONS LEFT UNANSWERED HERE HE SAYS HIS LAB ALREADY HAS BEGUN INTENSE APOE STUDIES ADDING THERE'S NO DOUBT APOE IS IMPORTANT HOW IMPORTANT IS YET TO BE SEEN 9311080091 931108 INTERNATIONAL HUTCHISON TO KEEP INTEREST IN UK AFTER SALE OF 2 UNITS BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG LI KASHING ISN'T BACKING OUT OF BRITAIN YET ON FRIDAY HUTCHISON WHAMPOA LTD WHICH MR LI CONTROLS SAID IT REMAINS COMMITTED TO ITS BIGGEST TELECOMMUNICATIONS GAMBLE IN THE UK ALTHOUGH IT WILL SHED TWO OF ITS RELATED BUSINESSES THERE THE ACTION ON THE COMPANY'S BRITISH OPERATIONS AWAITED FOR MONTHS FALLS SHORT OF THE RETREAT EXPECTED BY MANY OBSERVERS IN THE COLONY HUTCHISON ANNOUNCED ITS 65OWNED HUTCHISON TELECOMMUNICATIONS UK LTD WILL CLOSE ITS RABBIT TELEPOINT SERVICE AND SELL ITS MOBILE DATA OPERATION TAKING A 142 BILLION HONG KONG DOLLAR US184 MILLION PROVISION TO COVER THE INVESTMENT LOST IN THE BUSINESSES THAT PROVISION COVERS ONLY HUTCHISON WHAMPOA'S 65 SHARE OF THE INVESTMENT BRITISH AEROSPACE PLC OWNS 30 OF HUTCHISON TELECOMMUNICATIONS UK AND BARCLAYS PLC OWNS 5 BUT HUTCHISON TELECOMMUNICATIONS UK IS STICKING WITH THE DEVELOPMENT OF ITS CONTROVERSIAL PERSONAL COMMUNICATIONS NETWORK OR PCN EXPECTED TO BE ROLLED OUT NEXT APRIL HUTCHISON WHAMPOA SAID IT WILL SPEND ANOTHER HK4 BILLION ON PCN OVER THE NEXT THREE TO FOUR YEARS DURING WHICH TIME THE BUSINESS WILL PRODUCE LOSSES THE AVOWED COMMITMENT TO PCN COMES AFTER NEARLY A YEAR OF SPECULATION OFTEN FUELED BY HUTCHISON WHAMPOA EXECUTIVES THAT THE COMPANY WAS LOOKING FOR A NEW PARTNER IN THE UK BUSINESS LATE LAST YEAR BAE ANNOUNCED THAT IT WOULD SELL ITS NONCORE BUSINESSES INCLUDING ITS STAKE IN HUTCHISON TELECOMMUNICATIONS UK AS RECENTLY AS JUNE HUTCHISON EXECUTIVES SAID THEY WERE HELPING BAE LOOK FOR A BUYER WHILE SPECULATING ALOUD THAT ANY NEW INVESTOR PROBABLY WOULD WANT CONTROL OF THE UNIT BUT HUTCHISON A PORTSERVICES PROPERTY OIL AND RETAILING CONGLOMERATE SAID FRIDAY THAT IT IS COMMITTED TO PCN ADDING THAT BAE ALSO IS HAPPY WITH THE UK INVESTMENT PCN IS NOT FOR SALE SAID CANNING FOK HUTCHISON WHAMPOA'S NEW MANAGING DIRECTOR BAE COULDN'T BE REACHED FOR COMMENT 9311080090 931108 WHO'S NEWS MTB BANK MTB BANK NEW YORK THE CLOSELY HELD MERCHANT BANK SAID IT APPOINTED JOHN M BARTHOLOMEW PRESIDENT AND CHIEF OPERATING OFFICER MR BARTHOLOMEW WAS ALSO ELECTED TO THE BOARD HE WAS PREVIOUSLY CHIEF EXECUTIVE OFFICER FOR THE US OPERATION OF THE STATE BANK OF NEW SOUTH WALES LTD MTB BANK ALSO NAMED FREDRIC N TORDELLA VICE CHAIRMAN OF THE BOARD MR TORDELLA PREVIOUSLY PRESIDENT RETAINS THE POSITION OF CHIEF EXECUTIVE OFFICER DARREN S SCHULMAN MTB CHIEF FINANCIAL OFFICER WAS APPOINTED EXECUTIVE VICE PRESIDENT AND WAS ELECTED TO THE BOARD 9311080089 931108 INTERNATIONAL TAIWAN AEROSPACE SEEKS TO ALTER PACT WITH UK CONCERN BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN THE SAGA OF TAIWAN AEROSPACE CORP IS SOUNDING MORE AND MORE LIKE A BROKEN RECORD TAC 29OWNED BY THE GOVERNMENT WAS FORMED TO SPEARHEAD TAIWAN'S DRIVE TO DEVELOP AN AEROSPACE INDUSTRY FROM SCRATCH BUT THE COMPANY HAS EARNED LITTLE MORE THAN A REPUTATION FOR UNMET PROMISES IN THE TWO YEARS SINCE IT BEGAN SEEKING TO LINK UP WITH MAJOR INTERNATIONAL AEROSPACE COMPANIES THE ANNOUNCEMENT ON FRIDAY BY SENIOR TAC OFFICIALS THAT THEY HAVE PROPOSED TO ABANDON THE CORE OF AN AGREEMENT WITH BRITISH AEROSPACE PLC TO COPRODUCE PASSENGER JETS HIGHLIGHTS THAT CREDIBILITY PROBLEM JUST 18 MONTHS AGO TAC PULLED THE RUG OUT FROM UNDER A PROPOSED VENTURE WITH MCDONNELL DOUGLAS CORP BY ABANDONING A COMMITMENT TO INVEST UP TO 2 BILLION IN THE US COMPANY'S COMMERCIALAIRCRAFT DIVISION TAC'S DECISION TO TAKE THE TROUBLED BAE DEAL IN A NEW DIRECTION RAISES THE PROSPECT THAT THIS VENTURE COULD FALL THROUGH TOO BAE HAS BEEN DEEPLY FRUSTRATED IN RECENT MONTHS AS THE TAIWANESE HAVE RAISED A SUCCESSION OF NEW DEMANDS AND THE DEAL HAS ALMOST COLLAPSED SEVERAL TIMES IN AUGUST BAE CHAIRMAN JOHN CAHILL ANGRILY THREATENED TO ABANDON THE VENTURE IN A LETTER TO TAIWAN'S MINISTER FOR ECONOMIC AFFAIRS PK CHIANG THE TWO COMPANIES AGREED MORE THAN A YEAR AGO TO FORM A JOINT VENTURE TO MANUFACTURE BAE'S TROUBLED LINE OF MIDSIZED RJ PASSENGER JETS THE AGREEMENT ALSO CALLED FOR THE TWO TO EXPLORE THE POSSIBILITY OF DEVELOPING A NEW MODEL OF THE AIRPLANE THAT WOULD BE CALLED THE RJX THAT ARRANGEMENT ALREADY HAS BEEN REVISED SEVERAL TIMES AS TAIWAN HAS RAISED OBJECTIONS TO THE ORIGINAL STRUCTURE ON FRIDAY SING CHU TAC'S ACTING PRESIDENT TOLD REPORTERS DURING A BOARD MEETING THAT TAC HAS PROPOSED TO ABANDON THE AGREEMENT TO COPRODUCE THE RJ INSTEAD HE SAID TAC HAS PROPOSED THAT THE TWO COMPANIES WORK TOGETHER ONLY ON THE DEVELOPMENT OF THE RJX MR CHU SAID TAC'S CHAIRMAN EARLE HO RAISED THE IDEA WITH MR CAHILL DURING TALKS IN TAIPEI LATE LAST MONTH MR CHU SAID THAT SO FAR TAC HAS PRESENTED ITS PROPOSAL ONLY AS AN IDEA NOT A FORMAL PLAN A SOURCE FAMILIAR WITH THE NEGOTIATIONS SAID BAE ALREADY HAS RESPONDED NEGATIVELY TO TAC'S PROPOSAL IN A LETTER FAXED TO MR HO LAST WEEK THE SOURCE SAID MR CAHILL STATED BAE'S RELUCTANCE TO ABANDON THE COPRODUCTION PLAN A BAE SPOKESMAN IN LONDON SAID FRIDAY HIS COMPANY HADN'T YET HEARD FROM TAC OFFICIALS FOLLOWING THEIR BOARD MEETING AND THUS COULDN'T COMMENT THE SPOKESMAN ADDED THAT BAE'S PREFERRED OPTION IS STILL TO CREATE A JOINT VENTURE COMPANY WITH TAC TO BUILD THE RJ QUESTIONS BEGAN BEING RAISED IN TAIWAN ABOUT THE JOINT VENTURE AFTER A PRELIMINARY CONTRACT WAS SIGNED IN JANUARY CRITICS IN TAIWAN INCLUDING GOVERNMENT AGENCIES AND SOME OF TAC'S CORPORATE BACKERS BEGAN RAISING QUESTIONS ABOUT THE COMMERCIAL VIABILITY OF THE RJ PREVIOUSLY KNOWN AS THE BAE146 THE FOURENGINE RJ WHICH CARRIES 70 TO 120 PASSENGERS HAS HAD A DIFFICULT TIME COMPETING IN A SLACK WORLD AVIATION MARKET THE RJ IS JUST A CONTINUATION OF THE 146 SAID MR CHU AND IN THE PAST THE 146 WASN'T PARTICULARLY SUCCESSFUL FROM THIS POINT OF VIEW THERE WOULD DEFINITELY BE SOME CONCERN IN TAIWAN ABOUT COPRODUCTION BRIAN COLEMAN IN BRUSSELS CONTRIBUTED TO THIS ARTICLE 9311080088 931108 LADBROKE SELLS RACETRACK PITTSBURGH LADBROKE RACING CORP AND ITS PARTNERS HERBERT TYNER AND BERNARD HARTMAN SAID THEY SOLD CANTERBURY DOWNS RACETRACK IN SHAKOPEE MINN TO JACOBS REALTY INC OF MINNEAPOLIS TERMS WERE NOT DISCLOSED LADBROKE RACING A UNIT OF LADBROKE GROUP PLC SAID THE SALE IS SCHEDULED TO CLOSE BY THE END OF 1993 9311080087 931108 ECONOMY COMPTROLLER'S OFFICE TO USE STRICTER TEST IN PROBING MORTGAGE DISCRIMINATION BY KENNETH H BACON AND DAVE KANSAS STAFF REPORTERS OF THE WALL STREET JOURNAL THE COMPTROLLER OF THE CURRENCY IS USING NEW PROCEDURES TO DETERMINE WHETHER BANKS ARE DISCRIMINATING AGAINST MINORITY MORTGAGE APPLICANTS BY HOLDING THEM TO HIGHER STANDARDS THAN WHITE BORROWERS WHAT WE'RE LOOKING FOR IN THESE EXAMS IS DISPARATE TREATMENT BETWEEN DIFFERENT RACIAL GROUPS OF MORTGAGE APPLICANTS SAID STEPHEN CROSS DEPUTY COMPTROLLER OF THE CURRENCY FOR COMPLIANCE THE QUESTION IS IS THE SAME BENEFIT OF THE DOUBT BEING GIVEN TO ALL APPLICANTS THE COMPTROLLER PLANS TO REVIEW THE LARGEST MORTGAGELENDING BANKS ABOUT 200 OF THE 3600 NATIONAL BANKS WHILE SOME REPORTS HAVE SUGGESTED THAT THESE BANKS ARE SUSPECTED OF LENDING BIAS THE REVIEWS ACTUALLY ARE DESIGNED TO EVALUATE THE ADEQUACY OF BANK CONTROLS AGAINST BIAS FLEET FINANCIAL GROUP INC IS BEING REVIEWED UNDER THE NEW PROCEDURES A FLEET SPOKESMAN ON FRIDAY CALLED THE EXAMINATION ROUTINE AND ADDED IT'S OUR UNDERSTANDING WE'RE ONE OF THE BANKS NATIONWIDE THAT HAVE BEEN CHOSEN BY COMPTROLLER OFFICERS TO TEST THEIR NEW GUIDELINES AND WE'RE SATISFIED WITH THE PROGRESS OF THE REVIEW TO DATE ANTICIPATING THE EXAMINERS' VISITS HOWEVER THE PROVIDENCE RI COMPANY IN SEPTEMBER ISSUED EXTENSIVE REFRESHER PACKAGES ON LENDINGDISCRIMINATION LAWS TO LOAN OFFICERS AND OTHERS IN MEMORANDUMS TO ITS STAFF FLEET MANAGEMENT WARNED THAT THIS RIGOROUS EXAMINATION WILL BE CONDUCTED USING NEW INDEPTH PROCEDURES AND THE SOLE FOCUS WILL BE THE DETECTION OF ILLEGAL DISCRIMINATION THE MEMOS WERE MADE AVAILABLE TO THIS NEWSPAPER THE TOUGHER EXAMS COMPARE THE FILES OF BOTH APPROVED AND REJECTED MORTGAGE APPLICATIONS TO GAUGE WHETHER WHITES AND MINORITIES RECEIVED EQUAL TREATMENT AND AT A TIME WHEN MANY BANKS ARE WORKING TO STEP UP MINORITY LENDING THE NEW PROCEDURE IS DESIGNED TO DETECT BIAS THAT MAY IN FACT BE UNINTENTIONAL PREVIOUS EXAMS WEREN'T DESIGNED TO DETECT PATTERNS OF DISPARATE TREATMENT THE NEW EXAMS CAN TAKE THREE OR FOUR EXAMINERS AS LONG AS FOUR WEEKS TO COMPLETE IT'S OUR BELIEF THAT DISCRIMINATION WHERE IT OCCURS OFTEN AFFECTS APPLICANTS WITH SOME BLEMISHES RELATIVELY LITTLE TIME IN A CURRENT JOB PAST INSTANCES OF LATE PAYMENT ON CERTAIN OBLIGATIONS HIGH RATIOS OF DEBT TO INCOME OR HOUSING EXPENSE TO INCOME AS PART OF THEIR APPLICATION FILES COMPTROLLER EUGENE LUDWIG TOLD A CONGRESSIONAL PANEL LAST WEEK A FEDERAL RESERVE BANK OF BOSTON STUDY LAST YEAR SAID THAT BANKS ARE MUCH MORE LIKELY TO HELP WHITE BORROWERS THAN MINORITY APPLICANTS TO OVERCOME THESE PROBLEMS IN MANY CASES SUCH ASSISTANCE REQUESTING EXPLANATION OF DEROGATORY CREDIT INFORMATION SUGGESTING WAYS TO IMPROVE AN APPLICANT'S REPORTED INCOME OR REDUCE THE APPLICANT'S CURRENT DEBT OR OFFERING AN APPLICANT LOAN OPTIONS THAT MIGHT IMPROVE HIS OR HER ABILITY TO MEET UNDERWRITING STANDARDS CAN MEAN THE DIFFERENCE BETWEEN DENIAL AND ACCEPTANCE MR LUDWIG SAID FOR FLEET FINANCIAL THE REVIEW COMES AFTER SHARP SCRUTINY BY COMMUNITY GROUPS AND OTHERS ABOUT ITS MORTGAGELENDING PRACTICES WITH LOWINCOME BORROWERS IN JUNE IN A CASE BROUGHT BY THE GEORGIA ATTORNEY GENERAL A GEORGIA COURT RULED THAT INTERESTCHARGING PRACTICES AT ITS FLEET FINANCE UNIT WEREN'T ILLEGAL BUT THE COURT SAID IT DIDN'T CONDONE THE HIGHINTEREST CHARGES WHICH IT SAID WERE WIDELY VIEWED AS EXORBITANT UNETHICAL AND PERHAPS EVEN IMMORAL CURRENTLY THE COMPTROLLER'S EXAMS FOCUS ON MORTGAGE LENDING BECAUSE IT IS THE ONLY FORM OF CREDIT EXTENSION ON WHICH BANKS MUST RECORD THE APPLICANT'S RACE THE COMPTROLLER'S OFFICE ALSO IS STUDYING WHETHER TO SEEK RACIAL INFORMATION ON CONSUMER AND BUSINESS LOANS THE EXAM OF FLEET AND OTHER LARGE BANKS COULD PRODUCE ONE OF THREE RESULTS EXAMINERS COULD FIND THAT THE LENDING PRACTICES MEET ALL STANDARDS THEY COULD FIND SOME DEFICIENCIES AND REQUIRE REMEDIAL ACTION OR THEY COULD FIND A PATTERN THAT SUGGESTS DISCRIMINATION AND REFER THE CASE TO THE JUSTICE DEPARTMENT SO FAR THE COMPTROLLER'S OFFICE HAS COMPLETED ABOUT 100 OF THE EXPANDED EXAMS AND SOME 450 OF THE EARLIERSTYLE EXAMS ON SMALLER BANKS FOUR CASES OF SUSPECTED LENDING BIAS HAVE BEEN REFERRED TO THE JUSTICE DEPARTMENT FOR FURTHER INVESTIGATION THE FEDERAL RESERVE BOARD ALSO HAS REFERRED AT LEAST ONE CASE THE COMPTROLLER'S OFFICE SAID THAT IN ONE OF THE CASES IT HAS REFERRED A SETTLEMENT IS EXPECTED SOON THAT WILL LIKELY INVOLVE A PENALTY AGAINST THE BANK AND AN AGREEMENT BY THE BANK TO CHANGE ITS LENDING PROGRAM AS PREVIOUSLY REPORTED TWO BANKS REFERRED TO THE JUSTICE DEPARTMENT FOR INVESTIGATION ARE BARNETT BANKS INC OF JACKSONVILLE FLA AND SHAWMUT NATIONAL CORP IN HARTFORD CONN 9311080086 931108 CLINTON CONCEDES HE LACKS NAFTA VOTES LASHES OUT AT ORGANIZED LABOR PEROT BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON CONCEDING HE CURRENTLY LACKS THE VOTES TO PASS THE FREETRADE AGREEMENT WITH CANADA AND MEXICO LASHED OUT AT THE PACT'S CHIEF OPPONENTS ORGANIZED LABOR AND ROSS PEROT IN AN INTERVIEW ON NBC NEWS' MEET THE PRESS MR CLINTON ATTACKED THE UNIONS FOR USING ROUGHSHOD MUSCLEBOUND TACTICS AND NAKED PRESSURE TO INTIMIDATE DEMOCRATIC LAWMAKERS AND HE ATTEMPTED TO DISMISS MR PEROT THE TEXAS BILLIONAIRE AND FORMER PRESIDENTIAL CANDIDATE AS THE MASTER OF THE ONELINER AND THE EMOTIONAL RETORT WHO KEPT THINGS STIRRED UP BECAUSE THAT'S WHAT HE LIKES TO DO BUT IN THE END HE PREDICTED THE NORTH AMERICAN FREE TRADE AGREEMENT WILL BE APPROVED BY CONGRESS WITH A BIG BOOST COMING TOMORROW NIGHT WHEN VICE PRESIDENT AL GORE DEBATES MR PEROT ON CNN'S LARRY KING LIVE YESTERDAY'S HOURLONG INTERVIEW RANGED WIDELY FROM MR CLINTON'S PERSONAL HEALTH WHICH HE SAID WAS GOOD TO THE POSSIBILITY OF NUCLEAR WEAPONS PRODUCTION IN NORTH KOREA WHICH THE PRESIDENT SAID CAUSED HIM DEEP CONCERN MR CLINTON SAID THE US MUST BE VERY FIRM IN ITS OPPOSITION TO NORTH KOREA BUILDING A NUCLEAR BOMB AND HE REFUSED TO DISCUSS WHETHER THE US MIGHT TRY TO DESTROY THAT COUNTRY'S NUCLEAR FACILITIES BUT ECHOING HIS STERN WARNINGS WHEN HE VISITED THE DEMILITARIZED ZONE IN JULY PRESIDENT CLINTON WARNED THAT AN ATTACK BY NORTH KOREA ON SOUTH KOREA IS AN ATTACK ON THE UNITED STATES THE PRESIDENT WAS EQUALLY FORCEFUL IN HIS DEFENSE OF US POLICIES IN HAITI AND HIS SUPPORT OF JEANBERTRAND ARISTIDE THE COUNTRY'S EXILED PRESIDENT MR CLINTON SAID THAT QUESTIONS RAISED BY THE CENTRAL INTELLIGENCE AGENCY ABOUT MR ARISTIDE'S MENTAL STABILITY WERE OLD AND INCONCLUSIVE MR CLINTON REFRAINED FROM CRITICIZING ANOTHER WORLD LEADER RUSSIAN PRESIDENT BORIS YELTSIN DESPITE HIS DECISION NOT TO STAND FOR REELECTION IN JUNE AS HE HAD PROMISED INSTEAD MR CLINTON PRAISED THE COMING PARLIAMENTARY ELECTIONS THERE AND SAID AS LONG AS HE MR YELTSIN IS SUPPORTING REFORM I BELIEVE WE SHOULD SUPPORT HIM ASKED WHETHER TWO OF HIS FOREIGNPOLICY ADVISERS SECRETARY OF DEFENSE LES ASPIN AND SECRETARY OF STATE WARREN CHRISTOPHER WERE SECURE IN THEIR POSITIONS MR CLINTON GAVE ONLY A TEPID ENDORSEMENT I DON'T THINK THAT THE PRESIDENT SHOULD EVEN DISCUSS THAT SORT OF THING THOSE PERSONNEL THINGS HE SAID I THINK THEY DESERVE CREDIT FOR DOING WELL ON MANY BIG THINGS MR CLINTON SAID ADDING THAT SOME OF THE ATTACKS ON THEM HAVE BEEN QUITE UNFAIR BUT MR CLINTON WAS CLEARLY FOCUSED ON DOMESTIC MATTERS PARTICULARLY NAFTA WHICH IS HIS NEXT BIG CHALLENGE IN CONGRESS HE ACKNOWLEDGED THAT HE WAS 30 VOTES SHY OF A MAJORITY IN THE HOUSE BUT SAID ADDITIONAL LAWMAKERS WERE LEANING TOWARD THE PACT THE VOTE IS SCHEDULED FOR NOV 17 AS MR CLINTON'S COMMENTS YESTERDAY ILLUSTRATED HE INTENDS TO BE AGGRESSIVE ABOUT MAKING UP THE SHORTFALL IN AN UNUSUAL MOVE HE OVERTLY CRITICIZED HIS PARTY'S USUAL ALLIES LABOR FOR THREATENING TO UNSEAT DEMOCRATS WHO FAVOR NAFTA LATER IN THE PROGRAM HOWEVER HE PULLED BACK SOMEWHAT FROM HIS HARSH COMMENTS ABOUT LABOR SAYING THAT THOSE GUYS ARE MY FRIENDS THE PRESIDENT'S SURPRISE DECISION TO HAVE MR GORE DEBATE MR PEROT IS ANOTHER INDICATION OF HIS INTENTION TO BE BOLD WHEN YOU'RE BEHIND YOU HAVE TO ROLL THE DICE SAID REP BILL RICHARDSON D NM A LEADER IN THE PRONAFTA EFFORT THE DECISION TO DEBATE MR PEROT DISMAYED SOME SENIOR ADMINISTRATION OFFICIALS OUTSIDE THE WHITE HOUSE THEY FEAR THAT BY DEBATING MR PEROT THE WHITE HOUSE MIGHT BE GIVING HIM A CHANCE TO BUCK UP HIS STANDINGS IN THE POLLS IN A WALL STREET JOURNAL/NBC NEWS POLL MR PEROT'S PUBLIC APPROVAL RATINGS HAVE BEEN FALLING STEADILY THE SHARE OF THE AMERICAN PUBLIC THAT VOICES A POSITIVE FEELING ABOUT MR PEROT HAS DECLINED TO 30 IN A SURVEY IN LATE OCTOBER FROM 47 IN MARCH ADMINISTRATION OFFICIALS' CONCERNS TOWARD THE DEBATES WERE AMPLIFIED BY SENATE GOP LEADER ROBERT DOLE OF KANSAS WHO IS A NAFTA BACKER UNLESS HE KNOWS SOMETHING I DON'T KNOW MR DOLE SAID ON CBS NEWS' FACE THE NATION I THINK IT'S A BIG MISTAKE THE DEBATE HE EXPLAINED COULD PUT MR PEROT BACK INTO THE HEADLINES FOR THEIR PART PEROT BACKERS DIDN'T EXPECT TO DEBATE ANYONE AS HIGHRANKING AS MR GORE PAT CHOATE A PEROT ADVISER WHO COWROTE A BOOK WITH MR PEROT ATTACKING NAFTA SAID THE PEROT CAMP HAD FIGURED THE ADMINISTRATION WOULD OFFER US TRADE REPRESENTATIVE MICKEY KANTOR FOR A DEBATE IN HIS PUBLIC DEFENSES OF NAFTA MR KANTOR HAS BEEN TRYING A PEROTTYPE FOLKSINESS COMPLETE WITH GRAPHICS MR CLINTON DEFENDED THE DECISION TO DEBATE THE VICE PRESIDENT WILL DO WELL HE SAID DURING HIS NBC INTERVIEW THE AMERICAN PEOPLE WHO WATCH LARRY KING WILL SEE THAT IT'S NO ACCIDENT THAT ALL THE PRESIDENTS LIVING PRESIDENTS AND ALL THE LIVING NOBELPRIZEWINNING ECONOMISTS AND 41 OF THE 50 GOVERNORS ARE FOR THIS IT'S GOOD FOR THE AMERICAN ECONOMY BUT THE PEROT SIDE HAS AN EVEN BIGGER TARGET IN VIEW ACCORDING TO MR CHOATE MR PEROT IS AIMING TO MAKE SUCH A GOOD SHOWING AGAINST THE VICE PRESIDENT TOMORROW THAT THE WHITE HOUSE WILL BE FORCED TO HAVE THE PRESIDENT GO IN A SECOND DEBATE WE WANT THE PRESIDENT MR CHOATE SAID EVEN AS THE PRESIDENT LABORS TO WIN OVER UNDECIDED VOTERS SOME SUPPORTERS WERE THREATENING TO BOLT TEN WESTERNSTATE HOUSE REPUBLICANS WHO ARE ALL COUNTED AS SUPPORTERS OF NAFTA OR LEANING THAT WAY HAVE WRITTEN TO MR CLINTON THAT THEY MAY NOT VOTE FOR THE TRADE AGREEMENT IF HE DOESN'T BACK OFF HIS EFFORT TO RAISE GRAZING FEES ON PUBLIC LANDS ON OTHER MATTERS MR CLINTON SAID US TROOPS WILL AGAIN PATROL IN SOMALIA TO KEEP OPEN SUPPLY LINES FOR HUMANITARIAN AID OUR YOUNG SOLDIERS CANNOT BE EXPECTED TO JUST HUNKER DOWN AND STAY BEHIND WALLS HE SAID IT ALMOST PUTS THEM AT GREATER RISK HE HAD SLIMMED HIS WAISTLINE BY TWO OR THREE INCHES THANKS TO JOGGING SIX DAYS A WEEK BUT ADDED THAT HE FEELS OUT OF TOUCH AND MAYBE OUT OF HARMONY WITH THE PUBLIC DUE TO THE ISOLATION OF THE WHITE HOUSE HE INTENDS TO SIGN IN PRIVATE A LIVING WILL WHICH TELLS PHYSICIANS AND FAMILY MEMBERS HOW FAR HE WANTS THEM TO GO TO KEEP HIM ALIVE IF HE WERE INCAPACITATED 9311080085 931108 ECONOMY FACTORIES ADDED 12000 WORKERS DURING OCTOBER GAIN IN MANUFACTURING JOBS WAS THE FIRST IN MONTHS BUT JOBLESS RATE ROSE BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MANUFACTURERS ARE FINALLY HIRING FACTORIES ADDED 12000 EMPLOYEES TO THEIR PAYROLLS DURING OCTOBER ACCORDING TO THE LABOR DEPARTMENT ALTHOUGH THE UNEMPLOYMENT RATE EDGED UP TO 68 FROM 67 IN SEPTEMBER BECAUSE OF A BIG INCREASE IN THE NUMBER OF PEOPLE IN THE LABOR FORCE THE EMPLOYMENT GAIN IS HARDLY A WATERSHED AND IS ONLY A SMALL PART OF LAST MONTH'S 177000 INCREASE IN JOBS BUT IT IS THE FIRST TIME SINCE FEBRUARY THAT FACTORIES HAVE REFRAINED FROM CUTTING WORKERS AND IT MAY BE A SIGN THAT MORE MANUFACTURING JOBS ARE ON THE WAY THE JOB RECOVERY HOWEVER IS STILL VERY MUCH A WHITECOLLAR EXPERIENCE UNLIKE OTHER DOWNTURNS THE PAST RECESSION HIT MANAGERS AND OTHER PROFESSIONALS JUST AS HARD AS PRODUCTION WORKERS BUT WHITECOLLAR WORKERS NOW ARE GETTING MOST OF THE JOBS ACCORDING TO THE LABOR DEPARTMENT'S SURVEY OF HOUSEHOLDS ABOUT 54 OF THE 25 MILLION NONAGRICULTURAL JOBS ADDED IN THE PAST YEAR WERE MANAGERIAL OR PROFESSIONAL ANOTHER 15 WERE TECHNICAL SALES OR ADMINISTRATIVE JOBS ONLY 7 WERE PRODUCTION CRAFT OR REPAIR JOBS IT WAS AN EGALITARIAN RECESSION SAYS LARRY KATZ THE LABOR DEPARTMENT'S CHIEF ECONOMIST BUT MORE OF THE RECOVERY IS COMING IN WHITECOLLAR OCCUPATIONS THAT IS WHY THE SMALL GROWTH IN MANUFACTURING JOBS LAST MONTH IS ENCOURAGING FACTORIES HAVE BEEN RELUCTANT TO ADD NEW WORKERS IN THIS RECOVERY EVEN THOUGH DEMAND FOR MANUFACTURED GOODS IS SO ROBUST THAT THE FACTORY WORKWEEK IS THE HIGHEST SINCE WORLD WAR II AND OVERTIME IS AT RECORD LEVELS ECONOMISTS HAVE BEEN EXPECTING MANUFACTURERS TO ADD EMPLOYEES FOR MONTHS AFTER ALL ACCORDING TO FEDERAL RESERVE BOARD STATISTICS MANUFACTURERS INCREASED THEIR OUTPUT 49 BETWEEN SEPTEMBER 1992 AND SEPTEMBER 1993 WHILE THEY WERE TRIMMING THEIR WORK FORCES BY MORE THAN 250000 THERE WERE HINTS THAT FACTORYJOB GROWTH WAS ON THE WAY ASIDE FROM HIGH OVERTIME A SURVEY OF FEDERAL RESERVE BANKS RECENTLY TURNED UP REPORTS OF INCREASED HIRING AT FACTORIES IN PHILADELPHIA AND DALLAS MOST OF THE GAIN IN MANUFACTURING JOBS DURING OCTOBER WAS IN CONSTRUCTIONRELATED INDUSTRIES REFLECTING A PICKUP IN HOUSING ACTIVITY AND THE AUTOMOTIVE SECTOR BUT GAINS WERE SPREAD THROUGHOUT OTHER AREAS AS WELL AZON USA INC IN KALAMAZOO MICH A SMALL MAKER OF CHEMICALS AND MACHINERY FOR THE INSTALLATION OF WINDOWS AND DOORS IS LOOKING FOR TWO NEW EMPLOYEES AN INCREASE OF 5 TO HELP KEEP UP WITH DEMAND IF YOU NEED THE PEOPLE YOU NEED THEM SAYS JAMES DUNSTAN AZON'S CHAIRMAN AND CHIEF EXECUTIVE WE DON'T WANT TO MISS ANY TIMELY OPPORTUNITIES BECAUSE OF A LACK OF PERSONNEL BUT MANY ANALYSTS SAY THE MANUFACTURING SECTOR IS STILL VERY MUCH FOCUSED ON INVESTING IN CAPITAL EQUIPMENT NOT WORKERS THE TREND IS TO PUSH FOR PRODUCTIVITY GAINS SAYS PRISCILLA LUCE TRUMBULL HEAD OF INDUSTRIAL ANALYSIS FOR THE WEFA GROUP IN SUBURBAN PHILADELPHIA WE HAVE NOT YET GOTTEN TO THE POINT WHERE MANUFACTURERS ARE GOING TO CONSISTENTLY ADD NEW WORKERS ALTHOUGH THE MANUFACTURINGJOB GAINS WERE THE MOST NOTEWORTHY DURING OCTOBER THE BULK OF THE EMPLOYMENT GROWTH CAME IN THE SERVICE SECTOR ROUGHLY 114000 NEW JOBS WERE CREATED THERE WITHIN THE SERVICE SECTOR MOST OF THE GROWTH CAME IN TEMPORARYHELP COMPANIES AS HAS BEEN THE CASE FOR ROUGHLY TWO YEARS ANALYSTS SAY THE GROWTH IN MANAGERIAL JOBS IS THE REFLECTION OF TWO FACTORS ONE IS THAT TEMPORARY JOBS ARE ON THE RISE AND MANY OF THOSE POSITIONS ARE MANAGERIAL MR KATZ OF THE LABOR DEPARTMENT ESTIMATES THAT 20 OF THE MANAGERIAL JOBS CREATED DURING THE PAST YEAR ARE TEMPORARY ALSO A LOT OF THEM ARE FILLED BY LAIDOFF PROFESSIONALS WHO HAVE BECOME SELFEMPLOYED CONSULTANTS OR STARTED THEIR OWN SMALL FIRMS ALTHOUGH THE BOUNCEBACK OF THIS GROUP IS IMPRESSIVE THE BENEFITS AREN'T THESE JOBS HAVE DISTINCTLY LOWER PAY AND ARE LESS LIKELY TO HAVE BENEFITS SUCH AS HEALTH COVERAGE SAYS HARVARD ECONOMIST JAMES MEDOFF WHO HAS DEVELOPED A JOB QUALITY INDEX THESE JOBS ARE SUBSTANTIALLY INFERIOR TO THE ONES THE WHITECOLLAR WORKERS HAD BEFORE SEPARATELY THE FEDERAL RESERVE SAID CONSUMER CREDIT EXPANDED AT A 105 ANNUAL RATE IN SEPTEMBER THE LARGEST INCREASE SINCE JANUARY 1988 ANALYSTS SAID THE BIG GAIN IS ANOTHER SIGN THAT CONSUMERS FEEL THEIR BALANCE SHEETS ARE HEALTHY ENOUGH TO EXPAND THEIR DEBT LOADS CONSUMER CREDIT HAS BEEN INCREASING STEADILY ALL YEAR THE LATEST EXPANSION FOLLOWS A REVISED INCREASE AT AN 8 ANNUAL RATE IN AUGUST ALL CATEGORIES OF LOANS EXPANDED DURING SEPTEMBER WITH THE LARGEST RISE COMING IN CREDIT AND STORE CARDS WHICH JUMPED AT A 145 ANNUAL RATE HERE ARE EXCERPTS FROM THE LABOR DEPARTMENT'S EMPLOYMENT REPORT THE FIGURES ARE SEASONALLY ADJUSTED HERE ARE THE SEASONALLY ADJUSTED TOTALS OF CONSUMER INSTALLMENT CREDIT OUTSTANDING FOR SEPTEMBER IN BILLIONS AND PERCENTAGE CHANGES FROM AUGUST AT AN ANNUAL RATE HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9311080084 931108 INTERNATIONAL AUDI TO EXPLORE PARTTIME WORK TO AVOID LAYOFFS BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL MUNICH GERMANY CONFIRMING THAT AUDI AG WON'T BE ABLE TO KEEP ITS PLEDGE TO BREAK EVEN THIS YEAR CHAIRMAN FRANZJOSEF KORTUEM SAID THAT THE LUXURYCAR UNIT OF VOLKSWAGEN AG WILL BE INCREASINGLY PUSHING THE ISSUE OF PARTTIME WORK SCHEDULES TO PREVENT LARGE JOBREDUCTION PROGRAMS WE WILL NOW FORCE THE TOPIC OF PARTTIME WORK AND MAKE USE OF ANY FURTHER LEEWAY WE GET AS A RESULT OF LABOR DISCUSSIONS AT VW MR KORTUEM SAID VW HAS CAUSED A STIR IN GERMAN INDUSTRY WITH ITS PROPOSAL OF MOVING ITS WHOLE WORK FORCE TO A FOURDAY WORKWEEK INSTEAD OF LAYING OFF SOME 30000 WORKERS ROUGHLY A THIRD OF ITS WORK FORCE AUDI WOULDN'T BE ABLE TO PIGGYBACK DIRECTLY ANY SUCH AGREEMENT REACHED BETWEEN VW AND ITS EMPLOYEES DUE TO LEGAL DIFFERENCES IN THE STATUS OF AUDI AND VW LABOR CONTRACTS BUT IF SUCH A PACT WERE ATTAINED AT VW IT WOULD FACILITATE DISCUSSIONS OF LESS WORK FOR LESS PAY AT AUDI MR KORTUEM SAID WITH PRODUCTION NUMBERS THAT PLUNGED 33 IN THE FIRST NINE MONTHS OF THE YEAR AND UNIT SALES THAT CRASHED 25 TRIMMING THE THREE BILLION MARKS 177 BILLION CURRENTLY SPENT ON PERSONNEL COSTS IS A MAJOR PRIORITY FOR THE COMPANY AUDI HAD A LOSS OF 198 MILLION MARKS IN THE FIRST HALF OF THE YEAR ON SIX BILLION MARKS OF SALES AND ANALYSTS EXPECT A FULLYEAR LOSS OF 200 MILLION TO 300 MILLION MARKS AUDI OFFICIALS CONFIRMED THEY WILL BE IN THE RED FOR 1993 BUT WOULDN'T SAY HOW DEEPLY IN 1992 AUDI REPORTED A PROFIT OF 172 MILLION MARKS ON 17 BILLION MARKS OF SALES AUDI WHICH JUST A YEAR AGO WAS PRAISED AS ONE OF THE MOST PROMISING CAR COMPANIES IN EUROPE HAVING MADE A DRASTIC IMAGE TURNAROUND UNDER THENCHAIRMAN FERDINAND PIECH NOW IS COMMONLY VIEWED AS ONE OF THE SECTOR'S MOST TROUBLED COMPANIES AS MR KORTUEM WAS EAGER TO POINT OUT MANY OF THOSE TROUBLES STEM FROM HIS PREDECESSOR MR PIECH WHO STOKED PRODUCTION TO NEAR ITS MAXIMUM IN 1992 EVEN PUTTING WORKERS ON EXTRA SHIFTS BUT FAILED TO FIND ENOUGH BUYERS FOR THE CARS RESULTING IN ALMOST 100000 CARS LEFT OVER WHEN MR KORTUEM TOOK OVER AT THE BEGINNING OF THE YEAR BUT AFTER ALREADY SHEDDING 4000 WORKERS IN 1993 BRINGING THE WORK FORCE TO 33000 BY THE END OF THIS YEAR AUDI ONE OF THE MAIN EMPLOYERS IN THE SOUTHERN GERMAN CITIES OF INGOLSTADT AND NECKARSULM WHERE ITS FACTORIES ARE LOCATED KNOWS IT FACES HARSH OPPOSITION TO FURTHER LAYOFFS AT THE MOMENT I SEE NO POSSIBILITY FOR MORE JOB CUTS SAID ADOLF HOCHREIN HEAD OF AUDI'S WORKERS COUNCIL WE'VE ALREADY SHED SO MANY PEOPLE WE CAN'T DO ANY MORE MR HOCHREIN SAID 9311080083 931108 REPLIGEN SAYS MOLECULE DISCOVERY MAY HELP REGULATE RESPONSES CAMBRIDGE MASS REPLIGEN CORP SAID IT DISCOVERED A MOLECULE THAT MAY REGULATE IMMUNE RESPONSES AND COULD LEAD TO DRUGS THAT TARGET SPECIFIC IMMUNESYSTEM FUNCTIONS RATHER THAN DISABLING THE ENTIRE IMMUNE SYSTEM REPLIGEN ALSO SAID IT HAS ACQUIRED THE PATENT APPLICATIONS FOR THE MOLECULE B72 THAT WAS DISCOVERED BY RESEARCHERS FROM REPLIGEN DANAFARBER CANCER INSTITUTE HARVARD MEDICAL SCHOOL AND THE NAVAL MEDICAL RESEARCH INSTITUTE THE COMPANY SAID THE DISCOVERY OF B72 ALONG WITH THE PREVIOUS DISCOVERY OF A B7 MOLECULE THAT ALSO STIMULATES IMMUNE RESPONSE MAY MAKE IT POSSIBLE TO BLOCK CERTAIN ADVERSE IMMUNE RESPONSES THE DISCOVERY COULD CONTRIBUTE TO ELIMINATING INAPPROPRIATE IMMUNE RESPONSES FOLLOWING TRANSPLANTATION AND IN TREATING AUTOMIMMUNE DISEASES SUCH AS CERTAIN FORMS OF MULTIPLE SCLEROSIS RHEUMATOID ARTHRITIS AND DIABETES REPLIGEN SAID 9311080082 931108 BOMBARDIER INC GETS ORDER MONTREAL BOMBARDIER INC SAID IT RECEIVED AN ORDER VALUED AT 48 MILLION CANADIAN DOLLARS US368 MILLION FROM BRITISH COLUMBIA'S TRANSIT AUTHORITY TO SUPPLY 20 VEHICLES FOR THE VANCOUVER BC SKYTRAIN RAPID TRANSIT SYSTEM SKYTRAIN IS A FULLY AUTOMATED DRIVERLESS TRANSIT SYSTEM DELIVERIES OF THE 20 VEHICLES ARE TO TAKE PLACE OVER 12 MONTHS BEGINNING SEPTEMBER 1995 THE CONTRACT CARRIES TWO OPTIONS FOR 10 VEHICLES EACH IF EXERCISED THEY WOULD RAISE THE VALUE OF THE ORDER TO C89 MILLION BOMBARDIER IS A MONTREAL TRANSPORTATION EQUIPMENT MAKER 9311080081 931108 COMPTRONIX REPORTS SHARPLY WIDER LOSS FOR ITS THIRD PERIOD GUNTERSVILLE ALA COMPTRONIX CORP REPORTED A SHARPLY WIDER LOSS FOR ITS FISCAL THIRD QUARTER LARGELY ON A ONETIME CHARGE RELATED TO LAST YEAR'S DISCLOSURE THAT ITS MANAGEMENT OVERSTATED EARNINGS FOR SEVERAL YEARS FOR THE QUARTER ENDED OCT 3 COMPTRONIX HAD A LOSS OF 96 MILLION OR 87 CENTS A SHARE INCLUDING A ONETIME CHARGE OF 76 MILLION FOR THE YEAREARLIER PERIOD THE COMPANY POSTED A RESTATED LOSS OF 11 MILLION OR 10 CENTS A SHARE FOR THE RECENTLY ENDED QUARTER THE COMPANY'S OPERATING LOSS WAS 19 MILLION OR 18 CENTS A SHARE WHICH IT ATTRIBUTED TO REDUCED SHIPMENTS TO CUSTOMERS IN THE MICROCOMPUTER AND MEDICALEQUIPMENT INDUSTRIES COMPTRONIX WHICH DISCLOSED LAST YEAR THAT SENIOR MANAGEMENT HAD INFLATED EARNINGS FOR YEARS SAID IT TOOK THE CHARGE TO PROVIDE RESERVES FOR POTENTIAL PROBLEMS RELATED TO PRIOR MANAGEMENT PRACTICES AND TO ADOPT MORE CONSERVATIVE ACCOUNTING POLICIES COMPTRONIX A CONTRACT MANUFACTURER OF ELECTRONIC COMPONENTS ALSO ANNOUNCED THAT IT HAS REDUCED ITS STAFF BY 44 TO 1050 EMPLOYEES SINCE THE START OF THE YEAR ALSO IN OCTOBER TWO OUTSIDE DIRECTORS RESIGNED JIMMY R KIMSEY 53 YEARS OLD A GUNTERSVILLE BANKER AND JOE H RITCH 42 A HUNTSVILLE ALA ATTORNEY BOTH SAID THEY NEEDED MORE TIME TO SPEND IN OTHER PROFESSIONAL INTERESTS RICHARD W OLIVER A MANAGEMENT PROFESSOR AT VANDERBILT UNIVERSITY HAS FILLED ONE POST THE OTHER REMAINS OPEN 9311080080 931108 SOCIETE GENERALE TO SELL STAKE IN UNION MINIERE PUBLIC OFFER OF 25 STAKE IN MINING UNIT VALUED AT ABOUT 413 MILLION BY MARTIN DU BOIS STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS SOCIETE GENERALE DE BELGIQUE PLANS TO SELL A 25 STAKE IN UNION MINIERE SA ONE OF THE WORLD'S LARGEST NONFERROUS METALS PRODUCERS IN A PUBLIC OFFER TARGETED AT INSTITUTIONAL INVESTORS IN THE US EUROPE AND ASIA THE SALE WOULD REDUCE SGB'S STAKE IN UNION MINIERE TO 501 FROM 75 IN LINE WITH A DIVESTMENT POLICY BEGUN EARLIER THIS YEAR LAST MONTH THE BELGIAN HOLDING COMPANY AGREED TO SELL ITS 43 STAKE IN CEMENT MAKER CBR SA TO GERMANY'S HEIDELBERGE ZEMENT AG IN JUNE SGB SOLD A 5 UNION MINIERE STAKE TO A GROUP OF INSTITUTIONAL INVESTORS AFTER MONTHS OF EFFORTS TO FIND A SINGLE BUYER FOR MUCH OF UNION MINIERE FAILED TO BEAR FRUIT AT CURRENT STOCK PRICES THE PLANNED UNION MINIERE PUBLIC OFFER HAS A TENTATIVE VALUE OF ABOUT 15 BILLION BELGIAN FRANCS 413 MILLION SGB THE BELGIAN UNIT OF FRANCE'S CIE FINANCIERE DE SUEZ SAID THE PRICE AND OTHER TERMS OF THE OFFER WOULD BE ANNOUNCED AROUND NOV 22 SGB SAID IT WILL OFFER 308 MILLION UNITS EACH OF THEM INCLUDING ONE UNION MINIERE SHARE AND A WARRANT TO PURCHASE ANOTHER SHARE FROM SGB BEFORE DEC 15 1994 THE UNITS ARE EXPECTED TO BE PRICED AT THE SAME LEVEL AS THE CLOSING STOCK QUOTE FOR UNION MINIERE SHARES ON THE DAY THE TERMS ARE SET OFFICIALS CLOSE TO THE PLANNED TRANSACTION SAID THE EXERCISE PRICE FOR THE WARRANTS IS EXPECTED TO BE SET AT A SLIGHT PREMIUM OF ABOUT 50 TO 100 FRANCS SG WARBURG IN LONDON WILL UNDERWRITE THE ISSUE UNION MINIERE IS ONE OF THE WORLD'S LEADING PRODUCERS OF ZINC COPPER GERMANIUM COBALT CADMIUM AND OTHER NONFERROUS METALS IN THE FIRST HALF OF THE YEAR THE COMPANY POSTED A LOSS OF 887 MILLION FRANCS ON REVENUE OF 5487 BILLION FRANCS COMPARED WITH A LOSS OF 795 MILLION FRANCS ON REVENUE OF 66 BILLION FRANCS IN THE YEAREARLIER PERIOD ALTHOUGH THE STRONGER DOLLAR IS EXPECTED TO HAVE A POSITIVE EFFECT ON UNION MINIERE'S FUTURE RESULTS PRICES OF MANY NONFERROUS METALS PARTICULARLY ZINC HAVE BEEN SEVERELY DEPRESSED BY A SURGE IN IMPORTS FROM THE FORMER SOVIET UNION THE UNION MINIERE OFFER PRESENTS A DOUBLE SPECULATIVE OPPORTUNITY TO THE WOULDBE INTERNATIONAL INVESTOR SOME TRADERS BELIEVE THAT NONFERROUSMETAL PRICES MAY SOON HIT BOTTOM AND REBOUND IN THE COMING YEARS THE BELGIAN FRANC MEANWHILE IS ONE OF THE WEAKER CURRENCIES IN EUROPE'S EXCHANGERATE MECHANISM AND COULD CONTINUE WEAKENING AGAINST THE DOLLAR THAT WOULD PROVE A WINDFALL TO THE BELGIANBASED UNION MINIERE WHOSE REVENUE IS MOSTLY BILLED IN DOLLARS SGB WHICH IS 61OWNED BY SUEZ SAID IT INTENDS TO RETAIN A 501 HOLDING IN THE MINING AND REFINING COMPANY WE INTEND TO KEEP THE MAJORITY IN UNION MINIERE SAID A SPOKESWOMAN FOR THE BELGIAN HOLDING COMPANY THE AIM OF THE OPERATION SHE ADDED IS TO REDUCE SGB'S EXPOSURE TO THE CYCLICAL NATURE OF THE ACTIVITIES OF UNION MINIERE WHICH ACCOUNTS FOR A MAJOR CHUNK OF SGB'S WIDELY DIVERSIFIED PORTFOLIO BECAUSE THE UNION MINIERE OFFER WILL BE HALF IN SHARES AND HALF IN WARRANTS SGB IS ONLY EXPECTED TO REAP ABOUT 74 BILLION FRANCS IN CASH THIS YEAR FROM THE PUBLIC OFFER THE COMPANY DIDN'T SAY WHAT IT PLANS TO DO WITH THE PROCEEDS NEITHER HAS IT DISCLOSED PRECISE INTENTIONS REGARDING PROCEEDS REAPED IN PREVIOUS ASSET SALES THIS YEAR IN TRADING ON THE BRUSSELS BOURSE FRIDAY UNION MINIERE SHARES FELL 35 FRANCS TO CLOSE AT 2445 FRANCS SGB'S STOCK PRICE DECLINED 30 FRANCS TO 2610 FRANCS 9311080079 931108 WHO'S NEWS AC NIELSEN NORTH AMERICA CHIEF QUITS TO REJOIN RIVAL INFORMATION RESOURCES BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL THE INTENSE RIVALRY BETWEEN THE NATION'S TWO LEADING MARKETINGDATA COMPANIES TOOK A SURPRISING TURN WHEN THE HEAD OF AC NIELSEN'S NORTH AMERICAN OPERATIONS SUDDENLY QUIT AND RETURNED TO INFORMATION RESOURCES INC FROM WHICH HE HAD DEPARTED IN JUNE GEORGE R GARRICK 41 YEARS OLD WILL REJOIN THE CHICAGOBASED COMPANY AS PRESIDENT OF ITS NORTH AMERICAN INFORMATION SERVICES THE 12YEAR VETERAN OF INFORMATION RESOURCES HAD BEEN OVERSEEING ITS EFFORTS TO BETTER COMPETE WITH NIELSEN IN EUROPE BEFORE JUMPING SHIP IN SEARCH OF GREATER RESPONSIBILITY NIELSEN'S PARENT DUN & BRADSTREET CORP SAID IT WAS SHOCKED TO LEARN OF MR GARRICK'S DEPARTURE D&B PRESIDENT ROBERT E WEISSMAN WHO IS TO BECOME ITS CHIEF EXECUTIVE OFFICER IN JANUARY SAID THAT THERE WAS NO HINT OF IT ASKED WHETHER D&B MIGHT TAKE LEGAL ACTION MR WEISSMAN REPLIED I'D LIKE TO HOPE THAT WOULDN'T BE NECESSARY HERE HE SAID THAT WHILE MR GARRICK WASN'T UNDER A CONTRACT HE HAD SIGNED WHAT MR WEISSMAN CALLED A CONFIDENTIALITY AGREEMENT PERHAPS WE SHOULD HAVE HAD A CONTRACT WE MAY HAVE SUFFERED THE SIN OF BEING TOO TRUSTING MR WEISSMAN SAID MR GARRICK SAID HE WAS RELUCTANT TO DISCUSS HIS MOVE OTHER THAN TO ALLUDE TO SUBSTANTIVE DISAGREEMENTS WITH NIELSEN'S PARENT ABOUT THE MARKETING RESEARCH UNIT'S NEEDS IT HAD BECOME CLEAR TO ME THAT D&B HAD DIFFERENT PRIORITIES FOR NIELSEN THAN I DID MR GARRICK SAID FOR ITS PART INFORMATION RESOURCES WAS CROWING IT SAID MR GARRICK'S SHORT TENURE AT NIELSEN UNDERSCORES OUR CONFIDENCE IN THE COMPETITIVE EDGE OUR INFORMATION SERVICES OFFER OUR CLIENTS D&B SAID SERGE OKUN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AC NIELSEN AND A CORPORATE EXECUTIVE VICE PRESIDENT HAD ASSUMED OPERATING CONTROL OF NIELSEN MARKETING RESEARCH NORTH AMERICA BASED IN NORTHBROOK ILL NEWS OF MR GARRICK'S SWITCH JOLTED BOTH COMPANIES' STOCKS SHARES OF INFORMATION RESOURCES JUMPED 250 OR ABOUT 7 TO CLOSE AT 3650 IN NASDAQ STOCK MARKET TRADING FRIDAY WHILE THOSE OF D&B FELL 1125 TO 6625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING EACH SIDE USED THE EVENT TO BLAST THE OTHER D&B SAID THAT IN RECENT MONTHS NIELSEN HAS GAINED COMPETITIVE MOMENTUM IN THE GLOBAL MARKETPLACE WHILE IRI HAS SUFFERED SETBACKS THAT STATEMENT SEEMED CLEARLY AIMED AT NIELSEN'S LIST OF BIG MULTINATIONAL CLIENTS SOME OF WHICH MR GARRICK HAD BEEN VISITING RECENTLY ABOUT CONTRACT RENEWALS GIAN M FULGONI INFORMATION RESOURCES CHAIRMAN SAID OF D&B'S MOMENTUM IT'S GOT TO BE A DOWNWARD ONE INDUSTRY SOURCES SAID NIELSEN HAD RECRUITED MR GARRICK TO HELP MAKE OVER ITS DOMESTIC OPERATIONS WHICH SOME VIEW AS STUFFY AND SOMETIMES SLOW IN RESPONDING TO CLIENT NEEDS MR WEISSMAN ACKNOWLEDGED THAT NIELSEN WAS A LITTLE UPTIGHT AND GEORGE WAS ONE OF A NUMBER OF PEOPLE WE BROUGHT IN TO CHANGE THE CULTURE OF THAT BUSINESS BEFORE LEAVING INFORMATION RESOURCES MR GARRICK WAS SPEARHEADING AN EFFORT TO EXPAND THE COMPANY'S SERVICES GLOBALLY WHICH ANALYSTS CONSIDER CRUCIAL TO ITS ABILITY TO VIE WITH NIELSEN OUTSIDE THE US WHILE THE TWO COMPANIES ESSENTIALLY SPLIT THE US MARKET FOR SOFTWARE AND OTHER MARKETING AND FINANCIAL DECISIONMAKING SERVICES NIELSEN HAS A CLEAR LEAD OVERSEAS ALTHOUGH INFORMATION RESOURCES HAS AN INCREASING NUMBER OF MULTINATIONAL CLIENTS 9311080078 931108 MARKETING & MEDIA SOUTHWESTERN BELL SAID TO AGREE TO INVEST IN CABLE COMPANY WITH COX ENTERPRISES BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA IN THE LATEST ALLIANCE BETWEEN TELEPHONE AND CABLETELEVISION COMPANIES SOUTHWESTERN BELL CORP HAS TENTATIVELY AGREED TO MAKE A SUBSTANTIAL INVESTMENT IN A NEW CABLE COMPANY IT WOULD LAUNCH WITH COX ENTERPRISES INC ACCORDING TO PEOPLE FAMILIAR WITH THE TALKS THE JOINT VENTURE WHICH WOULD BE MAJORITY OWNED BY COX WOULD INITIALLY BE THE NATION'S FIFTHLARGEST CABLE COMPANY BUT ITS AIM WOULD BE TO BUY UP ENOUGH SMALLER CABLE COMPANIES TO HAVE A SUBSCRIBER BASE OF THREE MILLION WHICH WOULD MAKE IT THE THIRDLARGEST CABLE SYSTEM IN THE COUNTRY BEHIND TIME WARNER INC AND TELECOMMUNICATIONS INC WHICH RECENTLY AGREED TO BE ACQUIRED BY BELL ATLANTIC CORP ACCORDING TO ONE OF THE INDIVIDUALS ALLIANCES BETWEEN PHONE AND CABLE COMPANIES ARE BEING DRIVEN BY A CONVERGENCE OF TECHNOLOGY WHICH MEANS BOTH CABLE WIRES AND PHONE LINES ULTIMATELY WILL BE ABLE TO DELIVER THE SAME INFORMATION TO THEIR CUSTOMERS BY LINKING UP CABLE AND PHONE COMPANIES CAN EXPAND THEIR COVERAGE AREAS AND EXCHANGE MANAGEMENT EXPERTISE ALTHOUGH SOUTHWESTERN BELL'S BOARD WILL BE ASKED THIS WEEK TO APPROVE THE INVESTMENT FINAL TERMS HAVEN'T YET BEEN HAMMERED OUT SAYS AN INDUSTRY EXECUTIVE CLOSE TO THE TALKS MOREOVER THE DEAL STILL FACES OTHER HURDLES AMONG OTHER THINGS SOUTHWESTERN IS BELIEVED TO BE SIMULTANEOUSLY TALKING TO OTHER CABLE COMPANIES AND COULD STRIKE A BETTER DEAL THAT HAS HAPPENED BEFORE TO COX AN ATLANTABASED MEDIA CONGLOMERATE THAT HAD PLANNED TO PROVIDE CAPITAL TO VIACOM INC IN ITS BID FOR PARAMOUNT COMMUNICATIONS INC BUT WAS PREEMPTED BY NYNEX INC AT THIS POINT PEOPLE CLOSE TO THE TALKS SAID SOUTHWESTERN BELL IS EXPECTED TO CONTRIBUTE TO THE NEW VENTURE CASH AND CABLE PROPERTIES TOTALING AT LEAST 1 BILLION IN VALUE INCLUDING TWO CABLE PROPERTIES IT HAS AGREED TO ACQUIRE FROM HAUSER COMMUNICATIONS FOR 650 MILLION COX WOULD CONTRIBUTE TO THE NEW COMPANY CABLE OPERATIONS VALUED AT MORE THAN 35 BILLION AND ALREADY THE SIXTHLARGEST SYSTEM IN THE COUNTRY THESE PEOPLE SAY A COX SPOKESMAN CONFIRMED THAT THE COMPANY IS TALKING WITH EXECUTIVES AT SOUTHWESTERN BUT SAID THERE IS NO DEAL SOUTHWESTERN BELL BASED IN SAN ANTONIO DECLINED TO COMMENT THE TRANSACTION WOULD ENABLE COX CABLE TO GREATLY EXPAND ITS SUBSCRIBER BASE CURRENTLY IT HAS ABOUT 18 MILLION CABLE CUSTOMERS IT HAS SAID IT WOULD LIKE TO DOUBLE THAT NUMBER TO GAIN MORE LEVERAGE WITH PROGRAMMERS COX HAS BEEN IN TALKS WITH ALL SEVEN REGIONAL PHONE COMPANIES SINCE THIS SUMMER BUT SOUTHWESTERN WAS BELIEVED EVEN THEN TO BE ITS MOST LIKELY PARTNER THE TRANSACTION WOULD GIVE SOUTHWESTERN A MAJOR POSITION IN THE CABLETELEVISION BUSINESS ALREADY SOUTHWESTERN BELL IS BELIEVED BY INDUSTRY EXECUTIVES TO BE PURSUING WOMETCO CABLE CO AND GEORGIA CABLE TELEVISION OR GCTV WOMETCO IS OWNED BY ROBERT M BASS OF HOUSTON WHO ALSO OWNS 80 OF GCTV PRIME CABLE OWNS THE REMAINING 20 WOMETCO PRESIDENT MILTON LEWIS WOULDN'T COMMENT A GENERAL PARTNER IN THE WOMETCO SYSTEM CATEGORICALLY DENIED THAT THE COMPANY WAS CLOSE TO A DEAL WITH SOUTHWESTERN BELL RANDALL SMITH IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9311080077 931108 FOSTER'S BREWING SAYS IT MAY SEEK PARTNER FOR ITS COURAGE UNIT SPECIAL TO THE WALL STREET JOURNAL MELBOURNE FOSTER'S BREWING GROUP LTD OF AUSTRALIA IS PREPARED TO CONSIDER TAKING IN A JOINT VENTURE PARTNER FOR ITS COURAGE LTD BRITISH UNIT FOSTER'S CHIEF EXECUTIVE TED KUNKEL SAID FOSTER'S HAS BREWING OPERATIONS IN BRITAIN CANADA AND AUSTRALIA THE COMPANY ALSO HAS ENTERED JOINT VENTURES TO MAKE AND SELL BEER IN CHINA MR KUNKEL WAS ASKED IN A TELEVISION INTERVIEW IF FOSTER'S IS COMMITTED TO MAINTAINING FULL OWNERSHIP OF COURAGE HE REPLIED THAT FOSTER'S IS PREPARED TO MIX AND MATCH ANY OF ITS ASSETS THE COMPANY OPERATES THROUGH JOINT VENTURES IN NORTH AMERICA AND CHINA SO THERE COULD WELL BE JOINTVENTURE POSSIBILITIES FOR COURAGE IF THAT WAS THE RIGHT THING TO DO FOR FOSTER'S AND THE FOSTER'S SHAREHOLDERS MR KUNKEL SAID THE BREWING CONCERN'S CHIEF ALSO SAID HE IS EXPLORING WITH BROKEN HILL PROPRIETARY CO WAYS FOR FOSTER'S TO QUIT ITS HOLDING IN BESWICK PTY A JOINTLY OWNED CONCERN THAT OWNS A 20 STAKE IN BROKEN HILL PROPRIETARY BESWICK IS CLEARLY A STRUCTURE THAT BHP OFFICIALS HAVE TOLD ME THEY AREN'T PREPARED TO UNWIND AND I AM VERY SYMPATHETIC TO THAT WE'RE WORKING WITH THEM TO EXTRICATE FOSTER'S FROM THAT STRUCTURE HE SAID FOSTER'S LIKELY WILL SELL ITS INTEREST IN BESWICK BEFORE 1996 MR KUNKEL ADDED 9311080076 931108 JOINT ARMY UNVEILED IN BID FOR EC UNITY GERMANY AND FRANCE HOPE EUROCORPS WILL REVERSE TWO YEARS OF SETBACKS BY MARK M NELSON STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN BATTLING PUBLIC MISGIVINGS AND INCREASINGLY VOCIFEROUS OPPONENTS SOME EUROPEAN LEADERS ARE TRYING TO LIGHT NEW FIRES UNDER THE DRIVE FOR A UNITED EUROPE LESS THAN TWO WEEKS AFTER THE ENTRY INTO FORCE OF THE MAASTRICHT TREATY ON EUROPEAN UNION GERMAN AND FRENCH LEADERS ARE TRYING TO TURN THE TIDE OF TWO YEARS OF SETBACKS FOR UNITY FRIDAY'S ANNOUNCEMENT OF A 40000MEMBER EUROCORPS WAS THEIR LATEST EFFORT THE CORPS WILL BE COMPOSED OF TROOPS FROM FRANCE GERMANY AND BELGIUM AND MAY BE EXPANDED TO OTHER EUROPEAN COMMUNITY NATIONS THE GOAL IS FOR A JOINT FORCE TO PARTICIPATE IN MULTILATERAL MISSIONS LED BY THE UNITED NATIONS AND THE NORTH ATLANTIC TREATY ORGANIZATION AND PERHAPS SOMEDAY ACT ON ITS OWN THE PUSH FOR JOINT DEFENSE CAME DAYS AFTER FRENCH AND GERMAN FINANCE MINISTERS VOWED TO PRESS AHEAD WITH THE PLAN TO CREATE A SINGLE EC CURRENCY BY THE END OF THE DECADE SOME EUROPEAN LEADERS SUCH AS BRITISH PRIME MINISTER JOHN MAJOR HAVE WARNED THAT THE GOALS OF MAASTRICHTA JOINT FOREIGN AND SECURITY POLICY AND A SINGLE CURRENCY AREN'T FEASIBLE IN TODAY'S RECESSIONARY EUROPE THE EUROCORPS WHICH WILL BEGIN OPERATION IN FALL 1995 WILL BE BASED IN STRASBOURG A CITY THAT HAS BEEN PASSED BETWEEN FRANCE AND GERMANY AS A SPOIL OF EUROPEAN WARS GATHERED THERE FRIDAY DEFENSE MINISTERS OF BELGIUM FRANCE AND GERMANY VOWED THAT EUROPE'S HISTORY OF INTERNAL CONFLICT WAS OVER THE EUROCORPS IS THE CENTRAL BUILDING STONE FOR A EUROPEAN DEFENSE SAID GERMAN DEFENSE MINISTER VOLKER RUEHE WE ARE CREATING AN INSTRUMENT FOR A JOINT FOREIGN AND SECURITY POLICY OF THE EUROPEANS AT THE END OF THE ROAD EUROPE'S UNIFICATION WILL BE WAITING BUT THIS ATTEMPT TO RESTORE CONFIDENCE IN UNIFICATION WON'T BE EASY VOTERS WORRIED ABOUT SOARING PANEUROPEAN UNEMPLOYMENT AND A STUBBORN ECONOMIC DOWNTURN HAVE BECOME HIGHLY SKEPTICAL OF THE FARAWAY PROMISES OF INTEGRATION THE EC'S AGENDA WHICH WON WIDE PUBLIC SUPPORT IN THE LATE 1980S LATELY HAS PROVEN MORE A FORCE OF DIVISION THAN UNITY THE EUROCORPS EFFORT SHOWS THE MANY OBSTACLES EUROPEANS MUST OVERCOME BEFORE CREATING A CREDIBLE DEFENSE NOT ONLY HAVE NINE EC MEMBERS OPTED TO STAY OUT OF THE PROJECT BUT SOME PARTICULARLY BRITAIN ARE OPENLY DISMISSIVE BRITAIN DENMARK AND THE NETHERLANDS ARGUE THAT EUROPEAN NATIONS SHOULD FOCUS ON REINVIGORATING THE USLED NATO ALLIANCE BUT FRANCE AND GERMANY HAVE AGREED THAT THE EUROCORPS WILL COME UNDER NATO COMMAND IN THE EVENT OF WAR AND US OFFICIALS HAVE GRUDGINGLY LENT THEIR SUPPORT SOME US OFFICIALS SAY THEY HOPE THE EUROCORPS WILL HELP CONVINCE EUROPEANS TO INCREASE SUPPORT AND SPENDING ON MULTILATERAL DEFENSE PROJECTS THEY ALSO HOPE THAT A STRONGER EUROPEAN DEFENSE WILL BRING FRANCE CLOSER TO THE MILITARY ARM OF NATO WHICH IT LEFT IN 1966 THE EUROCORPS WHICH WILL BUILD ON THE 4000MAN FRANCOGERMAN BRIGADE WILL BE HEADED BY GERMAN GEN HELMUT WILLMANN SPAIN WHICH WILL HAVE OBSERVER STATUS IN THE EUROCORPS IS EXPECTED TO JOIN WITHIN A FEW YEARS OTHER EC MEMBERS MAY JOIN AS WELL FRENCH AND GERMAN OFFICIALS SAY IF THEIR EFFORTS PROVE ATTRACTIVE AND SUCCESSFUL THE CORPS' LAUNCH COMES AMID A FLURRY OF POLITICAL BATTLES OVER THE FUTURE OF EUROPEAN INTEGRATION AND DEFENSE GERMAN CHANCELLOR HELMUT KOHL A LEADING ADVOCATE OF A UNITED EUROPE FACES GROWING OPPOSITION FROM GERMANS WHO OPENLY REJECT THE POSTWORLD WAR II POLICY OF INTEGRATION SEVERAL PROMINENT MEMBERS OF HIS CENTERRIGHT COALITION CALL A FEDERAL EUROPE OUTMODED AND ENDORSE THE IDEA OF A EUROPE OF NATIONS ADVOCATED BY FORMER LEADERS LIKE MARGARET THATCHER AND CHARLES DE GAULLE MR KOHL TOLD THE UPPER HOUSE OF PARLIAMENT ON FRIDAY THAT THE CREATION OF A MORE UNIFIED EUROPE WAS THE ONLY WAY TO GUARANTEE EUROPE'S ECONOMIC AND POLITICAL PROSPERITY MR KOHL SAID THAT THE MAASTRICHT TREATY WHICH CALLS FOR EFFORTS TO CREATE COMMON POLITICAL AND ECONOMIC POLICIES WOULD NOT CREATE A EUROPEAN SUPERSTATE BUT RATHER A STRUCTURE THAT WOULD BE CAPABLE OF KEEPING EUROPEAN PEACE WE CAN'T GO BACK TO THE NATIONSTATE OF THE 19TH CENTURY MR KOHL SAID THIS IS THE MOST IMPORTANT IF NOT THE CENTRAL LESSON OF THIS CENTURY SOME EXPERTS ON INTERNATIONAL RELATIONS APPLAUDED THE FRANCOGERMAN EFFORTS THESE EFFORTS ARE JUST A BEGINNING SAYS UTA KUHLMANN EDITOR OF EUROPA ARCHIV A GERMAN JOURNAL OF INTERNATIONAL AFFAIRS EUROPEAN CITIZENS MAY BE GETTING TIRED OF ALL THESE LONGTERM PROJECTS BUT I HOPE THAT IN 10 YEARS' TIME WE WILL LOOK BACK AND SEE THAT THEY HAVE BEEN SUCCESSFUL 9311080075 931108 LAW LEGAL BEAT SEC IS CRACKING DOWN ON DENIALS THAT FOLLOW CONSENT AGREEMENTS BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL A DEAL IS A DEAL WHEN IT COMES TO SIGNING A CONSENT AGREEMENT TO SETTLE ENFORCEMENT ACTIONS BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION SHERMAN N BAKER CHAIRMAN OF J BAKER INC LEARNED THAT LESSON RECENTLY WHEN HE AGREED TO PAY MORE THAN 700000 TO SETTLE INSIDERTRADING ALLEGATIONS CONNECTED TO HIS INVOLVEMENT IN THE BANKRUPTCYLAW REORGANIZATION OF AMES DEPARTMENT STORES INC THE AGREEMENT INCLUDED THE STANDARD CLAUSE THAT MR BAKER SETTLED WITHOUT ADMITTING OR DENYING THE ALLEGATION BUT IN A NEWS RELEASE HE ISSUED WHEN THE SETTLEMENT WAS ANNOUNCED MR BAKER APPEARED TO DISREGARD THAT ASPECT OF THE AGREEMENT IN THE RELEASE THE 74YEAROLD MR BAKER SAID THAT THE SALE OF J BAKER STOCK IN QUESTION WAS PROPERLY PLANNED AND THAT HE SETTLED WITH THE SEC ONLY TO AVOID A PROLONGED LEGAL CONTEST WHICH WOULD HAVE BEEN BOTH COSTLY AND EXTREMELY STRESSFUL THAT DIDN'T PASS UNNOTICED AT THE SEC THE AGENCY HAS ALWAYS TAKEN A DIM VIEW AT THE VERY LEAST WHEN A SETTLING PARTY OR LAWYER GOES TO THE PRESS AFTER AN AGREEMENT HAS BEEN FILED IN COURT AND STARTS DISCLAIMING GUILT SAID ROBERT BLACKBURN ASSOCIATE NORTHEAST REGIONAL DIRECTOR FOR THE SEC IN NEW YORK ACCORDING TO SEC ENFORCEMENT OFFICIALS MR BAKER'S CASE WAS ONE OF THREE INSTANCES IN THE PAST MONTH IN WHICH DEFENDANTS HAVE SIGNED CONSENT AGREEMENTS TO END ENFORCEMENT ACTIONS ONLY TO TURN AROUND AFTERWARD AND PUBLICLY DENY WRONGDOING LAST MONTH NEW YORK LAWYER JEFFRY L FELDMAN SIGNED A CONSENT AGREEMENT AFTER THE SEC ISSUED A CEASEANDDESIST ORDER BARRING HIM FROM ADVISING CLIENTS THAT THEY WEREN'T REQUIRED TO REGISTER CERTAIN FOREIGN GOVERNMENT SECURITIES MR FELDMAN NEITHER ADMITTED NOR DENIED ANY WRONGDOING BUT HIS LAWYER DID WHEN AN ARTICLE IN THE NEW YORK LAW JOURNAL REPORTED THE SEC'S FINDINGS MR FELDMAN'S ATTORNEY WROTE TO THE LEGAL TRADE PUBLICATION TO COMPLAIN STATING THAT MR FELDMAN STRONGLY DENIES THE FINDINGS IN THE COMMISSION'S ORDER THE LETTER WAS PUBLISHED UNDER THE HEADLINE RECORD CORRECTED ON SEC PROCEEDING IN THAT CASE SEC ENFORCEMENT DIRECTOR WILLIAM R MCLUCAS WROTE MR FELDMAN'S ATTORNEY RICHARD S LAST DEMANDING A RETRACTION WHICH MR LAST PROVIDED AND WHICH THE NEW YORK LAW JOURNAL SUBSEQUENTLY PUBLISHED SIMILARLY LAST MONTH A KEMPER CORP UNIT KEMPER FINANCIAL SERVICES SIGNED A CONSENT AGREEMENT TO SETTLE SEC ALLEGATIONS THAT IT TRADED IN STOCKINDEX FUTURES FOR ITS OWN ACCOUNTS WHILE SIMULTANEOUSLY TRADING FOR FUNDS IT SELLS TO THE PUBLIC A CONFLICT PROHIBITED BY SECURITIES LAWS THE COMPANY DISGORGED 9750000 TO INVESTORS AND WITHOUT ADMITTING OR DENYING THE ALLEGATIONS PROMISED TO END THE ALLEGED VIOLATION THEN IN AN INTERVIEW WITH THE BLOOMBERG BUSINESS NEWS SERVICE THE CHAIRMAN OF THE FIRM CHARLES KIERSCHT DENIED ANY WRONGDOING SAYING NOTHING HAS HAPPENED HERE AT ALL HE ISSUED A RETRACTION AFTER THE SEC THREATENED TO WITHDRAW THE AGREEMENT IN THE BAKER CASE A SERIES OF PHONE CALLS AND FAX TRANSMISSIONS BETWEEN THE SEC AND MR BAKER'S ATTORNEY STEVE ISASON YIELDED THIS CLARIFICATION FROM MR BAKER THE STATEMENT THAT I RELEASED YESTERDAY HAS BEEN READ AS SUGGESTING THAT I ASSERTED THE SALE OF THE STOCK IN QUESTION WAS PROPER IT WAS NOT INTENDED AS SUCH I AGREED TO SETTLE THE CIVIL ACTION WITHOUT ADMITTING OR DENYING THE ALLEGATIONS THAT IS MY ENTIRE POSITION WITH THE SEC AND BEFORE THE COURT MR BAKER COULDN'T BE REACHED TO COMMENT AND HIS ATTORNEY DECLINED TO COMMENT MR MCLUCAS THE SEC ENFORCEMENT DIRECTOR SAID IF WE SEE AN INCREASE IN THIS WE'RE GOING TO MOVE TO VACATE THE TERMS OF THE SETTLEMENTS AND MOVE TO LITIGATION BECAUSE PEOPLE ARE NOT TAKING THE TERMS OF SETTLEMENT TO HEART AND THEY'RE BREAKING THE DEALS AN INJUNCTION PROTECTING A FLORIDA ABORTION CLINIC FROM DEMONSTRATORS HAS LED TO A STRANGE LEGAL QUESTION THAT MAY WIND UP BEFORE THE US SUPREME COURT ANTIABORTION DEMONSTRATORS CHALLENGED THE STATECOURT INJUNCTION IN A FEDERAL APPEALS COURT IN ATLANTA AND SIMULTANEOUSLY IN THE FLORIDA SUPREME COURT LATE LAST MONTH THE COURTS HANDED DOWN CONFLICTING RULINGS A THREEJUDGE PANEL OF THE APPEALS COURT SAID THE INJUNCTION APPARENTLY INTERFERES WITH PROTESTERS' FREESPEECH RIGHTS IT SENT THE CASE BACK TO A LOWER COURT EIGHT DAYS LATER THE FLORIDA COURT FOUND THE INJUNCTION CONSTITUTIONAL SUCH CONFLICTS ARE UNUSUAL BECAUSE GENERALLY A FEDERAL COURT WOULD REFUSE TO HANDLE A CASE THAT IS ALSO BEFORE A STATE COURT BUT THE FEDERAL COURT IN THIS CASE SAID THE PROTESTERS HAD NO ADEQUATE REMEDY IN STATE COURT MATHEW D STAVER AN ORLANDO ATTORNEY FOR THE ANTIABORTION DEMONSTRATORS SAID HE THINKS THE FEDERAL RULING SHOULD TAKE PRECEDENCE HE SAID HE MIGHT APPEAL THE FLORIDA RULING TO THE US SUPREME COURT GERALD B CURINGTON AN ASSISTANT FLORIDA ATTORNEY GENERAL WHO DEFENDED THE STATE JUDGE'S DECISION IN THE FEDERAL SUIT SAID HE BELIEVES THE INJUNCTION IS STILL VALID HE PLANS TO SEEK A REHEARING OF THE FEDERAL CASE BEFORE THE FULL 11TH US CIRCUIT COURT OF APPEALS MARTIN H REDISH WHO TEACHES JURISDICTION AND CONSTITUTIONAL LAW AT NORTHWESTERN UNIVERSITY SAID THE STATECOURT RULING PROBABLY SHOULD TAKE PRECEDENCE BUT THAT'S NOT ENTIRELY CLEAR HE SAID ADDING THAT THE CONFLICT CAN BE RESOLVED ONLY BY THE US SUPREME COURT WHICH DOES NOT HAVE TO TAKE UP THE ISSUE THE SENATE UNANIMOUSLY APPROVED A RESOLUTION CONDEMNING THE CLINTON ADMINISTRATION'S SOFTENING OF FEDERAL POLICY ON CHILD PORNOGRAPHY CITING THE ADMINISTRATION'S NEW STANCE THE SUPREME COURT LAST WEEK SET ASIDE A LOWERCOURT RULING THAT HAD AFFIRMED THE CHILDPORNOGRAPHY CONVICTION OF A PENNSYLVANIA MAN IN A BRIEF IN THE PENNSYLVANIA CASE THE JUSTICE DEPARTMENT SAID CHARGES SHOULD BE FILED ONLY WHEN THE MATERIALS IN QUESTION INCLUDE A VISIBLE DEPICTION OF A CHILD'S GENITALS AND SHOW A CHILD LASCIVIOUSLY ENGAGING IN SEXUAL CONDUCT THE DEFENDANT IN THE CASE WAS FOUND GUILTY OF OWNING SEXUALLY SUGGESTIVE VIDEOTAPES DEPICTING YOUNG GIRLS AND WAS SENTENCED TO FIVE YEARS IN PRISON THE CHILDREN DEPICTED WERE CLOTHED AND WEREN'T ENGAGING IN SEXUAL ACTS REPUBLICANS VOWED TO CONTINUE TO MAKE A POLITICAL ISSUE OF THE CHANGED POLICY ARGUING THAT THE ADMINISTRATION ISN'T AS TOUGH ON CRIME AS THE PRESIDENT CLAIMS JUSTICE DEPARTMENT SPOKESMAN CARL STERN COUNTERED THAT IN PRACTICAL TERMS THE NEW POLICY WILL AFFECT ONLY A HANDFUL OF PROSECUTIONS MURDER CHARGE UPHELD A CALIFORNIA STATE JUDGE DECLINED TO DISMISS MURDER CHARGES AGAINST A MAN WHO ALLEGEDLY DESTROYED A WOMAN'S WILL TO LIVE BY RAPING HER THE 79YEAROLD WOMAN DIED OF CONGESTIVE HEART FAILURE AND RENAL FAILURE ABOUT A MONTH AFTER THE ASSAULT MANY CRIMINALLAW SPECIALISTS HAD QUESTIONED WHETHER CASE LAW WOULD SUPPORT A MURDER CHARGE IN SUCH CIRCUMSTANCES THE TRIAL OF THE DEFENDANT JOSE ALONSO GARCIA OF STANTON CALIF IS SCHEDULED TO START THIS WEEK HIS PUBLIC DEFENDER LEONARD GUMLIA WASN'T AVAILABLE TO COMMENT ON THE COURT'S RECENT ORDER JUNDA WOO AND PAUL M BARRETT CONTRIBUTED TO THIS COLUMN 9311080074 931108 MINNEAPOLIS BOARD PICKS CONSULTANT AS SUPERINTENDENT TIES PAY TO GOALS BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL THE MINNEAPOLIS SCHOOL BOARD'S DECISION TO HIRE A CONSULTANT AS SCHOOL SUPERINTENDENT AND TO MAKE HIS PAY CONTINGENT ON PERFORMANCE HAS FURTHERED THE INVOLVEMENT OF THE PRIVATE SECTOR IN THE MANAGEMENT OF PUBLIC SCHOOLS FOLLOWING A PERIOD OF GROWING CIVIC CONCERNS ABOUT LOCAL SCHOOL MANAGEMENT THE BOARD VOTED LAST WEEK TO NAME PETER HUTCHINSON A FORMER MINNESOTA STATE COMMISSIONER OF FINANCE AS ITS NEXT SUPERINTENDENT PROVIDED HE CAN OBTAIN THE NECESSARY STATE WAIVER ENABLING A NONCERTIFIED PERSON TO HOLD THE POSITION MR HUTCHINSON'S CONSULTING FIRM PUBLIC STRATEGIES GROUP INC WILL ALSO BE RETAINED BY THE SCHOOL BOARD UNDER A CONTRACT LINKING HIS PAY AND THE FIRM'S FEE TO PERFORMANCE GOALS ALTHOUGH THESE GOALS HAVE YET TO BE SPECIFIED ONE AIM IS EXPECTED TO BE NARROWING THE GAP BETWEEN THE TEST SCORES OF WHITE STUDENTS AND MINORITY STUDENTS WHOSE NUMBERS ARE RISING IN MINNEAPOLIS SCHOOLS WE WANT TO CHANGE THE SCHOOLS FROM THE CULTURE OF A BUREAUCRACY TO A CULTURE THAT FOCUSES ON CUSTOMER SERVICE WHERE THE PARENTS AND STUDENTS ARE THE CUSTOMERS SAID BABAK ARMAJANI CHIEF EXECUTIVE OF PUBLIC STRATEGIES MR ARMAJANI SAID PERFORMANCE GOALS MIGHT ALSO INCLUDE OVERALL GAINS IN TEST SCORES INCREASED ATTENDANCE AND DECLINES IN VIOLENT SCHOOL INCIDENTS HE SAID PUBLIC STRATEGIES WILL SEEK TO GIVE MORE DECISIONMAKING AUTHORITY TO INDIVIDUAL SCHOOLS THROUGH SITEBASED MANAGEMENT COUNCILS OF TEACHERS PARENTS AND ADMINISTRATORS TIED TO A SYSTEM OF ACCOUNTABILITY AND INCENTIVES FOR RESULTS MR ARMAJANI AND MR HUTCHINSON WHO COULDN'T BE REACHED HAVE USED SIMILAR IDEAS IN ADVISING GOVERNMENT DEPARTMENTS IN MINNESOTA AND CANADA ON HOW TO IMPROVE SERVICES AND EFFICIENCY SUCH SCHOOLBASED MANAGEMENT SCHEMES AREN'T NEW BUT HAVE FALTERED IN OTHER PLACES BECAUSE OF PRINCIPALS' RESISTANCE AND THE INABILITY OF THE MANAGEMENT COUNCILS TO AFFECT PERSONNEL DECISIONS THE RULES OF HIRING AND FIRING IN SCHOOLS ARE OFTEN RIGID AND BASED ON SENIORITY ACCORDING TO TEACHERS' UNION CONTRACTS MR HUTCHINSON HOWEVER HAS HAD THE EARLY ENDORSEMENT OF THE MINNEAPOLIS FEDERATION OF TEACHERS THE MINNEAPOLIS MOVE FOLLOWS EFFORTS BY OTHER FORPROFIT CONCERNS TO OPERATE PUBLIC SCHOOLS EDUCATION ALTERNATIVES INC AN EAGAN MINN COMPANY MANAGES NINE SCHOOLS FOR BALTIMORE AND AN AFFILIATE OF WHITTLE COMMUNICATIONS LP HAS APPROACHED A NUMBER OF PUBLIC OFFICIALS ABOUT THE POSSIBILITY OF OPERATING SCHOOLS UNDER CONTRACT JOE NATHAN DIRECTOR OF THE CENTER FOR SCHOOL CHANGE AT THE UNIVERSITY OF MINNESOTA CALLED THE MINNEAPOLIS DECISION HISTORIC BUT SAID THAT MR HUTCHINSON HAD LITTLE IN COMMON WITH THE EDUCATION ALTERNATIVES AND WHITTLE EFFORTS NO ONE HAS TRIED PERFORMANCEBASED PAY FOR A MAJOR METROPOLITAN SUPERINTENDENT BEFORE MR NATHAN SAID MINNEAPOLIS HAS ABOUT 44500 STUDENTS IN 79 SCHOOLS OR OTHER SITES BUT UNLIKE THE OTHER PRIVATE INTERESTS WHO ARE SEEKING PUBLIC SCHOOL BUSINESS MR HUTCHINSON HARDLY QUALIFIES AS AN OUTSIDER HE SERVES ON THE BOARD OF THE CITIZENS LEAGUE AN INFLUENTIAL GROUP OF LOCAL BUSINESSMEN AND OTHER RESIDENTS AND HIS FIRM IS CURRENTLY UNDER CONTRACT WITH THE SCHOOL BOARD TO HELP REORGANIZE ITS FINANCE DEPARTMENT 9311080073 931108 MARKETING & MEDIA DISNEY IS SAID TO BE PLANNING TO JUMP INTO FRAY WITH VIRGINIA THEME PARK BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL BURBANK CALIF FIGHTING TO STAY AHEAD OF OTHER ENTERTAINMENT GIANTS WALT DISNEY CO IS PLANNING A MAJOR THEME PARK IN VIRGINIA TO DO BATTLE WITH PARAMOUNT COMMUNICATIONS INC'S KINGS DOMINION PARK NEAR RICHMOND SAY INDIVIDUALS CLOSE TO THE SITUATION DISNEY WOULDN'T COMMENT DETAILS WERE SKETCHY BUT THE PROPOSED PARK IS THOUGHT TO HAVE AN AMERICA THEME APPROPRIATE TO THE LOCATION THE WORKING NAME FOR THE PARK IS WALT DISNEY'S AMERICA IT WASN'T KNOWN EXACTLY WHERE IN VIRGINIA THE PARK WOULD BE LOCATED BUT DISNEY HAS ACQUIRED LAND THE AREA BETWEEN WASHINGTON DC AND THE RICHMONDWILLIAMSBURG AREA IS A GROWING TOURIST DESTINATION IN ADDITION TO KINGS DOMINION ANHEUSERBUSCH CO OPERATES THE OLD COUNTRY NEAR THE RESTORED SETTLEMENT OF HISTORIC WILLIAMSBURG CIVIL WAR BATTLEFIELDS ABOUND DANISH TOY COMPANY LEGO SYSTEMS AS IS CONTEMPLATING A 100 MILLION PARK IN EITHER PRINCE WILLIAM COUNTY SOUTH OF WASHINGTON OR CARLSBAD CALIF AN ANNOUNCEMENT OF DISNEY'S PLANS WAS SAID TO BE COMING SOON ONCE THE PROPOSED PARK IS UNVEILED THERE'S NO GUARANTEE THE PROJECT WILL BE BUILT DISNEY ANNOUNCED PLANS FOR A 3 BILLION MARINETHEMED DEVELOPMENT IN LONG BEACH CALIF IN 1990 ONLY TO ABANDON ITS PLANS WHEN REGULATORY AND ENVIRONMENTAL CONCERNS INTERVENED DISNEY NOW IS MAKING PREPARATIONS FOR WESTCOT A NEW 3 BILLION THEME PARK AND RESORT COMPLEX ADJACENT TO DISNEYLAND IN ANAHEIM CALIF THAT WILL BE BUILT IF THE LOCAL GOVERNMENTS CONTINUE TO GO ALONG DISNEY IS PLANNING A SECOND THEME PARK IN TOKYO SIMILAR TO THE LONG BEACH PLAN CALLED DISNEY SEA WHEN DISNEY WAS SO SUCCESSFUL IN REVIVING AND ADDING TO ITS THEME PARKS SINCE THE MID1980S OTHER MOVIE COMPANIES TOOK NOTICE HIT MOVIES COULD FIND AN AFTERLIFE IN THEMEPARK ATTRACTIONS AND THE CROSSPROMOTIONAL OPPORTUNITIES SEEMED LIMITLESS AMONG ITS DESIGNERS AT THE COMPANY'S IMAGINEERING UNIT DISNEY'S RECENT THEME PARK ENERGIES HAVE BEEN DIRECTED TOWARD WESTCOT A DISNEYLAND EXPANSION TOON TOWN WHICH OPENED THIS YEAR AND EURO DISNEY WHICH OPENED LAST YEAR THE COMPANY HAS INDICATED IT MAY BE PREPARING MORE EXPANSION AT DISNEY WORLD AND RUMORS SWIRL PERIODICALLY ABOUT DISNEY INTEREST IN BRANSON MO THE FASTGROWING ENTERTAINMENT CENTER IN THE OZARKS DISNEY HASN'T COMMENTED BUT THE PLANS FOR VIRGINIA HAVE REMAINED A CLOSELY GUARDED SECRET ONE ISSUE RAISED BY THE VIRGINIA SITE WOULD BE WEATHER EURO DISNEY STRUGGLED THROUGH LAST YEAR'S COLD WINTER AND SOME QUESTION WHETHER A PARK ON THE SCALE OF A DISNEY PARK CAN FLOURISH WHILE ATTRACTING VISITORS FOR ONLY PART OF THE YEAR 9311080072 931108 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION GTE SOUTHWEST INC A UNIT OF GTE CORP A SHELF OFFERING OF UP TO 500 MILLION OF DEBENTURES LOUISIANA POWER AND LIGHT CO A UNIT OF ENTERGY CORP A SHELF OFFERING OF 210 MILLION OF FIRST MORTGAGE BONDS AND PREFERRED STOCK SANIFILL INC A SHELF OFFERING OF UP TO 600000 COMMON SHARES 9311080071 931108 WHAT'S NEWS WORLDWIDE CLINTON ATTACKED ORGANIZED LABOR AND PEROT FOR OPPOSING NAFTA THE PRESIDENT CONCEDING HE CURRENTLY LACKS THE VOTES TO PASS THE FREETRADE AGREEMENT WITH CANADA AND MEXICO ASSAILED UNIONS FOR USING ROUGHSHOD MUSCLEBOUND TACTICS AND NAKED PRESSURE TO INTIMIDATE DEMOCRATS AND CLINTON ATTEMPTED TO DISMISS TEXAS BILLIONAIRE PEROT AS THE MASTER OF THE ONELINER PEROT AND VICE PRESIDENT GORE ARE SET TO DEBATE THE TRADE PACT TOMORROW TEN WESTERNSTATE HOUSE REPUBLICANS ALL SUPPORTERS OF NAFTA OR LEANING THAT WAY TOLD CLINTON THEY MAY NOT VOTE FOR THE TRADE AGREEMENT IF HE DOESN'T BACK OFF HIS EFFORT TO RAISE GRAZING FEES RUSSIAN COMMUNISTS VENTED THEIR RAGE AT PRESIDENT YELTSIN ON THE ANNIVERSARY OF THE 1917 BOLSHEVIK REVOLUTION ABOUT 1500 PEOPLE GATHERED IN WOODS OUTSIDE MOSCOW TO DENOUNCE THE YELTSIN CAMP AS FASCISTS AND CRIMINALS A DAY AFTER THE PRESIDENT APPEARED TO WAFFLE ON HIS SEPTEMBER PROMISE TO HOLD EARLY ELECTIONS NEXT JUNE A GROWTH HORMONE WAS APPROVED BY THE FDA FOR USE IN INCREASING THE PRODUCTION OF MILK IN COWS BOVINE SOMATOTROPIN WHICH UNDERWENT EXTENSIVE SCIENTIFIC AND GOVERNMENT TESTING WAS FOUND NOT TO CHANGE THE NUTRITIONAL VALUE OF MILK OR MEAT MONSANTO SAID IT WILL MARKET THE DRUG UNDER THE NAME POSILAC ALZHEIMER'S DISEASE MAY BE CAUSED WHEN A BLOOD PROTEIN SETS OFF A CHEMICAL REACTION INSIDE BRAIN CELLS CAUSING THEM TO DISINTEGRATE AND LEADING TO LOSS OF MEMORY AND MENTAL FUNCTIONING AND TO DEATH RESEARCHERS FROM DUKE UNIVERSITY SAID THE EXPLANATION COULD ACCOUNT FOR 60 OF ALZHEIMER'S CASES A DEFENSEAUTHORIZATION BILL GAINED THE APPROVAL OF HOUSE AND SENATE NEGOTIATORS THE MEASURE ACCELERATES A SHIFT INTO THE POSTCOLD WAR WORLD AND SKEPTICALLY ENDORSES THE PENTAGON'S PLAN FOR THE TROUBLED MCDONNELL DOUGLAS C17 PROGRAM THE BILL REPRESENTS A 13 BILLION SPENDING CUT FROM THE PRIOR YEAR PALESTINIAN GUNMEN OPENED FIRE ON A CAR CARRYING A RIGHTWING ISRAELI RABBI IN THE OCCUPIED WEST BANK WOUNDING HIM IN THE ARM AND SHOULDER AND KILLING HIS DRIVER THE ATTACK NEAR HEBRON PROMPTED JEWISH SETTLERS TO RAMPAGE THROUGH A MARKET AREA AND BURN ARAB CARS AT LEAST TWO PALESTINIANS WERE SHOT AND WOUNDED A LEADING MEDICAL CHARITY HAS ACCUSED THE UN OF FOOTDRAGGING BUNGLING AND RECKLESSNESS IN THE FORMER YUGOSLAVIA AND SOMALIA A DRAFT OF A REPORT BY THE BELGIUMBASED GROUP DOCTORS WITHOUT BORDERS BLAMES THE UN AND WESTERN POWERS FOR TOLERATING AND EVEN CONTRIBUTING TO HUMAN SUFFERING AROUND THE WORLD JAPAN'S RULING COALITION WAS BRUSHED WITH THE HINT OF SCANDAL AMID NEWS REPORTS THAT A KEY GOVERNMENT FIGURE RECEIVED MONEY FROM A CONSTRUCTION COMPANY THE REPORTS SAID ICHIRO OZAWA CHIEF STRATEGIST OF THE SEVENPARTY COALITION RECEIVED 46000 LAST DECEMBER FROM A VICE PRESIDENT OF KAJIMA CORP A SCHIZOPHRENIA DRUG PRODUCES BIG SAVINGS IN HEALTHCARE COSTS BY CUTTING DOWN ON HOSPITAL STAYS ACCORDING TO A STUDY OF CLOZARIL MADE BY SANDOZ THE STUDY MARKS AN EFFORT BY CLOZARIL'S SUPPORTERS TO DEFUSE CONCERN ABOUT ITS STEEP PRICE BY TAKING A BROADER VIEW OF SCHIZOPHRENIA'S ECONOMIC IMPACT THE MINNEAPOLIS SCHOOL BOARD VOTED LAST WEEK TO HIRE A CONSULTANT AS SCHOOL SUPERINTENDENT AND MADE HIS PAY CONTINGENT ON PERFORMANCE FURTHERING THE INVOLVEMENT OF THE PRIVATE SECTOR IN THE MANAGEMENT OF PUBLIC SCHOOLS THE BOARD SELECTED PETER HUTCHINSON WHO IS A FORMER MINNESOTA STATE COMMISSIONER OF FINANCE THREE SWEDISH PEACEKEEPERS WERE HELD FOR SEVERAL HOURS BY SERB GUNMEN IN CENTRAL BOSNIA AFTER SHOOTING BROKE OUT WHILE THE SWEDES WERE TRYING TO RESCUE UP TO 600 CROAT REFUGEES THOUGHT TO BE TRAPPED IN THE VILLAGE OF DASTANSKO DURING THE STANDOFF NATO JETS WERE CALLED IN TO FLY LOW OVER THE VILLAGE IN A SHOW OF STRENGTH GEORGIAN FORCES CAPTURED THE LAST STRONGHOLD OF WESTERN REBELS WHO HAVE BEEN FIGHTING AGAINST THE SHEVARDNADZE GOVERNMENT FOR TWO MONTHS THE GOVERNMENT TROOPS SEIZED ZUGDIDI ON SATURDAY WITHOUT RESISTANCE FROM THE REBELS TRYING TO RESTORE OUSTED PRESIDENT GAMSAKHURDIA 9311080070 931108 SURPRISE UPSET IN NEW ZEALAND ELECTIONS MAY HANG UP PARLIAMENT ECONOMY BY S KARENE WITCHER AND MARK REYNOLDS STAFF REPORTERS OF THE WALL STREET JOURNAL A SURPRISE UPSET IN NEW ZEALAND'S NATIONAL ELECTIONS WHICH RESULTED IN NEITHER MAJOR PARTY GAINING A MANDATE HAS LEFT FINANCIAL MARKETS BRACED FOR TURMOIL AND SOME ECONOMISTS WORRIED THAT THE ELECTORAL UNCERTAINTY COULD DENT AN ECONOMIC RECOVERY THAT HAS BEEN A LONG TIME IN COMING WHEN NEW ZEALANDERS WENT TO THE POLLS SATURDAY NATIONWIDE OPINION SURVEYS PREDICTED THAT THE INCUMBENT CONSERVATIVE NATIONAL PARTY WOULD BE RETURNED FOR ANOTHER THREEYEAR TERM BUT THE OUTCOME IS A SPECTER OF A HUNG PARLIAMENT A RARITY IN NEW ZEALAND POLITICS WITH THE MINOR POLITICAL PARTIES HOLDING THE BALANCE OF POWER THE FINAL RESULTS WILL BE DETERMINED BY ABSENTEE BALLOTS FOR A HANDFUL OF PARLIAMENT SEATS THAT WON'T BE TALLIED FOR ABOUT 10 DAYS AT THE SAME TIME THE COUNTRY VOTED TO DUMP ITS EXISTING ELECTORAL SYSTEM OF FIRST PAST THE POST UNDER WHICH CANDIDATES WIN IF THEY GET THE MOST VOTES IN FAVOR OF A GERMANSTYLE MIXED MEMBER PROPORTIONAL REPRESENTATION METHOD WHICH WILL GIVE MINOR PARTIES A BIGGER SAY IN GOVERNMENT AND EXPAND THE NUMBER OF MEMBERS OF PARLIAMENT ACCORDING TO A PRELIMINARY COUNT THE NATIONAL PARTY WON 49 SEATS OF 99 SEATS IN NEW ZEALAND'S SINGLECHAMBER PARLIAMENT JUST ONE SEAT SHORT OF A MAJORITY THE LABOUR PARTY WON 46 SEATS AND TWO RELATIVELY NEW PLAYERS ON THE POLITICAL SCENE APPEAR TO HAVE WON TWO SEATS EACH THE LEFTIST ALLIANCE PARTY A COALITION OF SEVERAL GROUPS INCLUDING ENVIRONMENTALISTS AND DOMINATED BY JIM ANDERTON WHO BROKE AWAY FROM THE LABOUR PARTY AND NEW ZEALAND FIRST A SPLINTER FROM THE NATIONALS THAT IS LED BY CHARISMATIC FORMER NATIONAL CABINET MINISTER WINSTON PETERS THE NATIONAL PARTY WILL REMAIN IN POWER UNTIL THE FINAL VOTES ARE COUNTED AND MANY ANALYSTS EXPECT THE NATIONALS TO BE ABLE TO FORM A GOVERNMENT ALBEIT A MINORITY ONE THE NATIONAL PARTY CAME TO POWER IN 1990 WHEN IT ROUTED LABOUR WHICH OVER THE PREVIOUS SIX YEARS HAD ENGINEERED THE OPENING OF NEW ZEALAND'S CLOSETED ECONOMY BUT LEFT THE COUNTRY IN A RECESSION JIM BOLGER NATIONAL PARTY LEADER SAID SATURDAY NIGHT THAT HE IS CONFIDENT HIS PARTY WILL BE ABLE TO FORM A GOVERNMENT AFTER THE FINAL TALLY HE NOTED HOWEVER THAT IT WILL DEPEND ON THE COOPERATION OF THE OTHER POLITICAL PARTIES ADDING TO THE CONFUSION MIKE MOORE THE 44YEAROLD LEADER OF THE LABOUR PARTY WHO SEEMED CARRIED AWAY BY LABOUR'S COMEBACK ALSO CLAIMED HE WOULD BE IN A POSITION TO FORM A GOVERNMENT WE'VE WON HE TOLD A CROWD OF HIS SUPPORTERS LATE SATURDAY NIGHT MR BOLGER A 58YEAROLD FARMER AND FATHER OF NINE CHILDREN WHOSE NICKNAME IS SPUD RAN AN UNINSPIRED CAMPAIGN THAT RELIED ON AN UPTURN IN ECONOMIC INDICATORS TO PROPEL HIM BACK INTO OFFICE HE CAUTIONED VOTERS AGAINST A TEMPTATION TO MESS WITH SUCCESS IT DIDN'T WORK THE MESSAGE NEW ZEALANDERS SENT ON SATURDAY TO THEIR POLITICIANS IS THAT AFTER NEARLY A DECADE OF WRENCHING ECONOMIC RESTRUCTURING AND WITH UNEMPLOYMENT STUCK AT AROUND 10 IT'S GONE TOO FAR SAID KEITH JACKSON A POLITICAL SCIENTIST AT THE UNIVERSITY OF CANTERBURY IN NEW ZEALAND TO BOTH MAJOR POLITICAL PARTIES WHO SHARE SIMILAR HARDLINE ECONOMIC PLATFORMS VOTERS ARE SAYING WE DON'T TRUST EITHER OF YOU AND WE'RE GOING TO TRY TO CURB YOU BY VOTING FOR MINOR PARTIES MR JACKSON SAID INDEED IT IS PRECISELY THAT MESSAGE THAT IS SURE TO RATTLE FINANCIAL MARKETS AS AN ECONOMIST I FIND IT DISAPPOINTING FROM THE POINT OF VIEW OF WHAT IT TELLS US ABOUT NEW ZEALANDERS' WILLINGNESS TO EMBRACE THE REFORMS AND STICK WITH THEM SAID TIM MAIN CHIEF ECONOMIST OF AUSTRALIA & NEW ZEALAND BANKING GROUP LTD IN WELLINGTON THE RISK IS WE START TO SLIP BACK INTO THE BAD OLD WAYS OF THE PAST AND THAT COULD WELL HAVE NEGATIVE CONSEQUENCES FOR US IN THE LONG TERM HE ADDED MEANWHILE MR MAIN IS LAYING ODDS OF MUCH GREATER THAN 50 THAT THE GOVERNMENT WILL CALL A SNAP ELECTION BY MID1994 GIVEN THE STRAINS THAT ARE LIKELY TO RESULT FROM THE DIFFERING PHILOSOPHIES AND CONFLICTING PERSONALITIES BETWEEN THE MINOR PARTIES AND THEIR BIGGER COUNTERPARTS UNDER LABOUR FINANCIAL MARKETS WERE DEREGULATED TARIFFS WERE CUT AND INDUSTRY SUBSIDIES TAKEN AWAY PERSONAL AND CORPORATE TAX RATES WERE LOWERED HUNDREDS OF MILLIONS OF DOLLARS OF GOVERNMENT ASSETS WERE SOLD INCLUDING THE NATIONAL FLAG CARRIER AIR NEW ZEALAND AND THE NATIONAL TELEPHONE COMPANY THE NATIONAL PARTY TOOK UP THE REINS IN 1990 AND UNSHACKLED THE LABOR MARKET AND CUT WELFARE BENEFITS MOREOVER THE ALLIANCE FAVORS A MORE INTERVENTIONIST APPROACH TO GOVERNMENT AND IS LIKELY TO PROMOTE PROGRAMS THAT WILL CREATE JOBS INDEED ECONOMISTS WORRY THAT THE BIGGEST THREAT TO THE ECONOMY IS A LOOSENING OF THE COUNTRY'S HITHERTO TIGHT FISCAL STANCE DON TURKINGTON MANAGING DIRECTOR OF BROKERAGE CONCERN CAVILL WHITE SECURITIES LTD CONTENDS THAT EVEN A SOFTENING IN POLICY WILL DAMAGE NEW ZEALAND'S INVESTMENT IMAGE PEOPLE HAVE BEEN INVESTING IN NEW ZEALAND BECAUSE WE'RE SEEN AS HAVING A HARDLINE ECONOMIC POLICY THAT HAS BROUGHT ABOUT GROWTH IF WE DON'T MAINTAIN THESE POLICIES THERE IS GOING TO BE A CAPITAL FLIGHT FROM EQUITIES AND BONDS HE SAID 9311080069 931108 LEISURE & ARTS BOOKSHELF BUSH AND THE BUSHIES' UNDER FIRE BY FRED BARNES HAVING LOST HIS PRESIDENCY IGNOMINIOUSLY GEORGE BUSH HAS MANY CRITICS AND THE MOST SCATHING AND MERCILESS ARE CONSERVATIVES WHO FEEL SEDUCED AND ABANDONED BY THE MAN TO THEM THE CONVENTIONAL VIEW OF MR BUSH AS A PLEASANT FELLOW PAINFULLY ILLEQUIPPED TO GOVERN IN A POSTCOLD WAR ERA IS INSUFFICIENT HE'S ALSO DECEITFUL SELFISH A POLITICAL COWARD A MAN WHOSE ACTS OF KINDNESS THE LITTLE THANKYOU NOTES ARE CALCULATED FOR PERSONAL GAIN MR BUSH'S SENIOR AIDES ARE WORSE A POWERHUNGRY TECHNOCRAT JOHN SUNUNU AN INTELLECTUAL BULLY RICHARD DARMAN A PATHETIC INCOMPETENT SAM SKINNER JOHN PODHORETZ'S HELL OF A RIDE BACKSTAGE AT THE WHITE HOUSE FOLLIES 19891993 SIMON & SCHUSTER 249 PAGES 21 DELIVERS THE CONSERVATIVE CASE AGAINST MR BUSH BOTH CLEVERLY AND ACIDLY IT'S HIGHLY UNFAIR MR BUSH IS PORTRAYED AS HAVING PRACTICALLY NO REDEEMING FEATURES EVEN SKILL IN FOREIGN AFFAIRS BUT THE BOOK IS OFTEN HILARIOUS AND ALWAYS FUN TO READ MR BUSH ISN'T TREATED AS A COMIC FIGURE BUT HIS AIDES ARE ESPECIALLY THE AMBITIOUS BUT BRAINLESS ONES IN THE SECOND AND THIRD TIERS OF THE WHITE HOUSE HIERARCHY THEY CONSTITUTE A TYPE THE BUSHIE AND MR PODHORETZ SKEWERS THEM BRILLIANTLY MR PODHORETZ A JOURNALIST WHO WORKED BRIEFLY IN THE REAGAN ADMINISTRATION FOR THEN EDUCATION SECRETARY WILLIAM BENNETT AND LATER AS A PRESIDENTIAL SPEECH WRITER HAS ONE OVERARCHING COMPLAINT ABOUT MR BUSH HE DOESN'T BELIEVE IN ANYTHING THIS CREATED A PERMANENT CRISIS MR PODHORETZ RELATES BECAUSE NOBODY NOT THE PRESIDENT NOT HIS THREE CHIEFS OF STAFF NOBODY KNEW WHAT THE ADMINISTRATION WAS ABOUT THUS IT WAS IMPOSSIBLE TO CONCOCT A BUSH DOMESTIC AGENDA OR CONSISTENT POLICY THEMES ON DOMESTIC MATTERS MR BUSH MERELY WANTED TO GET ALONG WITH CONGRESS WITH AS LITTLE FRICTION AS POSSIBLE THAT WAS FINE UNTIL THE ECONOMY SOURED IN 1990 AND CONGRESS TURNED HOSTILE THEN MR BUSH WAS IN TROUBLE WITH NO WAY OUT THAT PART OF THE CONSERVATIVE CASE IS I THINK INARGUABLE BUT MR PODHORETZ ALSO FINDS MR BUSH PERSONALLY REPUGNANT GRACIOUS BUSH CERTAINLY WAS BUT NEVER SELFLESS HE WRITES EVERY KINDNESS ON HIS PART OR IN HIS NAME WAS CONSIDERED PAYBACK FOR SERVICES RENDERED OR AN ADVANCE ON SERVICES OWED BY WHOM NOT BY MR BUSH MR PODHORETZ CASTS HIM AS TOTALLY SELFOBSESSED NEVER HAS A PUBLIC FIGURE USED THE FIRST PERSON SO OFTEN HE WRITES WELL SO WHAT NEVER HAS A PRESIDENT HELD SO MANY PRESS CONFERENCES AND RESPONDED TO SO MANY QUESTIONS ABOUT HIMSELF MR PODHORETZ UNDERSTANDS BUSHIES A LOT BETTER THAN HE UNDERSTANDS MR BUSH HIS PORTRAITS OF ANONYMOUS BUT REAL BUSH AIDES ARE DEVASTATING UNLIKE REAGANITES OR THE ZEALOUS YOUNG LIBERALS WHO STAFF THE CLINTON WHITE HOUSE BUSHIES SAW THEIR PRESIDENTIAL JOBS NOT AS ENDS IN THEMSELVES BUT AS STEPPING STONES WORKING IN THE BUSH WHITE HOUSE DID NOT SO MUCH REPRESENT AN AMBITION FULFILLED AS THE BEGINNING OF THE PATH TO FUTURE GLORY MR PODHORETZ WRITES ABOUT HIS BUDDIES THEIR GOAL WASN'T POWER BUT BEING CLOSE TO POWER IN WASHINGTON EVEN THE PROXIMITY TO POWER IS AN APHRODISIAC THE TROUBLE WITH BUSHIES WAS THEY REINFORCED THE PRESIDENT'S WORST TRAITS SINCE MR BUSH WAS OBSESSIVE ABOUT STIFLING LEAKS SO WERE THEY THIS WAS COUNTERPRODUCTIVE THE REAGAN WHITE HOUSE HAD ROUTINELY LEAKED NEW PROPOSALS THE DAY BEFORE THEY WERE ANNOUNCED A LEAKED STORY HAS A LUSTER THAT A MERE REPORT ON A SPEECH OR A PRESS CONFERENCE DOESN'T HAVE MR PODHORETZ NOTES WISELY BESIDES PROPOSALS GET A TWODAY NEWS RIDE BUT AT THE BUSH WHITE HOUSE THE FEW SIGNIFICANT PROPOSALS THAT EMERGED DIDN'T EVEN GET A ONEDAY RIDE EXAMPLE A PLAN FOR LOWERING EVERYONE'S AUTO INSURANCE MR BUSH ANNOUNCED IT DURING THE 1992 CAMPAIGN IN A SPEECH IN WHICH HE CLASHED WITH HECKLERS GUESS WHAT MADE THE NETWORK NEWS THE PLAN OR THE CLASH BUSHIES AND THEIR BOSSES ALSO KEPT MR BUSH IN A COCOON DISCONNECTED FROM REAL LIFE AND NORMAL PEOPLE TRUE HE WASN'T STRUGGLING TO BREAK OUT SURROUNDED BY FOLKS WHO ADORED HIM AND THOUGHT OF LITTLE ELSE BUT HIM MR BUSH NEVER KNEW HE NEEDED TO LIVING IN THE COCOON HE COULDN'T TELL THE DIFFERENCE BETWEEN ONE DAY AND THE NEXT BETWEEN A DAY WHEN HIS POLL NUMBERS ARE AT 90 PERCENT AND A DAY WHEN THEY ARE AT 30 PERCENT MR PODHORETZ SAYS THE PEOPLE WHO MEET WITH HIM WILL STILL BE DAZZLED TO BE IN THE OVAL OFFICE STILL CONCERNED ABOUT HIS GOOD OPINION AND IF THE PRESIDENT ASKS HOW IT LOOKS OUT THERE THEY WILL PULL THEIR PUNCHES AT THE BUSH WHITE HOUSE THE PRESIDENT WAS THE LAST TO KNOW HIS PROSPECTS FOR REELECTION WERE EVAPORATING THE ISOLATION OF THE PRESIDENT IS HARDLY A NEW PHENOMENON GEORGE REEDY WHO WAS LBJ'S PRESS SECRETARY WROTE ABOUT IT COMPELLINGLY IN THE TWILIGHT OF THE PRESIDENCY TWO DECADES AGO MR BUSH OF COURSE THOUGHT HE WASN'T ISOLATED AT ALL HOW COULD HE BE WRITING ALL THOSE NOTES AND MAKING ALL THOSE PHONE CALLS TO PALS OUTSIDE WASHINGTON MR PODHORETZ A SKILLFUL REPORTER AND EVEN BETTER CHRONICLER OF WHITE HOUSE CUSTOMS EXPLAINS HOW BILL CLINTON TAKE NOTE MR BARNES IS A SENIOR EDITOR AT THE NEW REPUBLIC 9311080068 931108 WHO'S NEWS IBM'S SWITCH TO NEW CHIEF STRATEGIST MAY SIGNAL DESIRE FOR FASTER CHANGES BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE SUDDEN AND UNEXPECTED DEPARTURE OF BERNARD PUCKETT AS IBM'S CHIEF STRATEGIST MAY SIGNAL AN INCREASING URGENCY ON THE PART OF ITS NEW CHAIRMAN LOUIS V GERSTNER TO QUICKEN THE PACE OF CHANGE AT THE AILING COMPANY BUT IN REPLACING MR PUCKETT WHO WAS PROMOTED ONLY FOUR MONTHS AGO AND WAS ONE OF THE FEW OLDLINE IBM EXECUTIVES INVITED TO JOIN THE NEW INNER CIRCLE MR GERSTNER HAS ELEVATED YET ANOTHER LONGTIME OFFICIAL JAMES CANNAVINO IS A CONTROVERSIAL MOVER AND SHAKER WHO HAD BEEN IN CHARGE OF THE BUSINESSES THAT ARE CRUCIAL TO REBUILDING INTERNATIONAL BUSINESS MACHINES CORP PERSONAL COMPUTERS OPERATING SYSTEMS THE NEW POWER PC CHIPMAKING EFFORT AND MULTIMEDIA MR CANNAVINO CRITICIZED IN THE PAST FOR A CONFRONTATIONAL STYLE HASN'T ALWAYS CALLED THE RIGHT SHOTS AND WILL BE WATCHED CAREFULLY SOME OBSERVERS BLAME HIM FOR ALLOWING MICROSOFT CORP TO WALK AWAY WITH THE PC SOFTWARE AND OPERATING SYSTEM BUSINESS IN THE LATE 1980S MORE RECENTLY HE HAS DRAWN PRAISE FOR SLASHING COSTS IN THE PERSONALCOMPUTER COMPANY PUTTING IT BACK ON THE ROAD TO PROFITABILITY AND MAKING GOOD CALLS ON SUCH SUCCESSFUL PRODUCTS AS THE THINKPAD IN AN INTERVIEW MR CANNAVINO DESCRIBED THE RATE OF CHANGE UNDER MR GERSTNER AS URGENT ADDING I FEEL THE PACE HAS INCREASED ENORMOUSLY MR PUCKETT COULDN'T BE REACHED FOR COMMENT ON HIS ABRUPT RESIGNATION WHEN MR GERSTNER PROMOTED THE LONGTIME VETERAN LAST JUNE HE DISHED OUT PLENTY OF COMPLIMENTS DESCRIBING MR PUCKETT AS SOMEONE WITH EXPERIENCE AND INSIGHT WHO WOULD TAKE CHARGE OF STRATEGIC ISSUES AND OPPORTUNITIES WHEN HIS EXIT WAS ANNOUNCED LATE FRIDAY IBM SAID ONLY THAT MR PUCKETT WAS LEAVING TO EXPLORE OPPORTUNITIES TO GO INTO BUSINESS FOR HIMSELF MR GERSTNER SAID NOTHING ABOUT MR PUCKETT'S CONTRIBUTIONS OVER THE PAST TWOPLUS DECADES AT IBM THAT DEARTH OF KINDLY COMMENT LED SOME OBSERVERS TO BELIEVE THAT THE TWO MEN HAD COME TO SHARP DISAGREEMENT OVER STRATEGY AND HAD DECIDED MUTUALLY THAT MR PUCKETT SHOULD LEAVE OTHERS SPECULATE THAT MR PUCKETT WASN'T MOVING FAST ENOUGH FOR MR GERSTNER MR GERSTNER HAS COME UNDER SOME CRITICISM FOR FOCUSING ON COSTCUTTING INSTEAD OF DIVINING AN OVERARCHING STRATEGIC VISION THE JABS STARTED WHEN HE PROMOTED MR PUCKETT LAST JUNE MOSTLY MR PUCKETT WASN'T THE SYMBOL OF FRESH AIR FOR WHICH IBMWATCHERS WERE HOPING HE HAD PRESIDED OVER THE MAINFRAME BUSINESS IN THE LATE 1980S AS IT UNDERWENT STEEP DECLINES AND HIS MARKETING BACKGROUND RAISED QUESTIONS OF WHETHER HE HAD THE RIGHT KIND OF EXPERIENCE TO MAKE STRATEGIC TECHNOLOGY DECISIONS MR CANNAVINO BY CONTRAST IS STEEPED IN TECHNOLOGY HAVING JOINED IBM IN 1963 AS A CUSTOMER ENGINEER IN CHICAGO AND WORKED HIS WAY UP TO BECOME GROUP VICE PRESIDENT OVERSEEING THE PERSONAL SYSTEMS DIVISION LAST YEAR AS THE APPARENT RIGHTHAND MAN OF MR GERSTNER WHO HAS NO TECHNOLOGY BACKGROUND MR CANNAVINO IS EXPECTED TO OFFER UNQUALIFIED AND STRAIGHTFORWARD OPINIONS ON STRATEGIC DIRECTION FOR TECHNOLOGY AND BUSINESS INITIATIVES THIS IS GOOD NEWS FOR IBM SHAREHOLDERS SAID BOB DJURDJEVIC PRESIDENT OF THE CONSULTING FIRM ANNEX RESEARCH WHO HAD LABELED IT A BLUNDER WHEN MR GERSTNER PROMOTED MR PUCKETT FIVE MONTHS AGO DANIEL MANDRESH AN ANALYST AT MERRILL LYNCH CAPITAL MARKETS ADDED THAT MR CANNAVINO IS THE RIGHT GUY AT THE RIGHT TIME 9311080067 931108 CREDIT MARKETS S&P TO ASSESS THE VOLATILITY OF BOND FUNDS BY BARBARA DONNELLY GRANITO STAFF REPORTER OF THE WALL STREET JOURNAL STANDARD & POOR'S CORP HAS GOOD NEWS FOR MUTUALFUND INVESTORS IN JANUARY IT WILL START GRADING BOND FUNDS ON MARKET RISK OR HOW WELL THEY'RE LIKELY TO WEATHER INTERESTRATE SHOCKS AND OTHER DISRUPTIONS THE DOWNSIDE FOR INVESTORS DON'T HOLD YOUR BREATH ABOUT GETTING YOUR HANDS ON THE NEW RATINGS THERE ARE LOTS OF HURDLES TO OVERCOME BEFORE THE INFORMATION CAN GET ANYWHERE NEAR YOU TO START WITH S&P NEEDS THE FUNDS' APPROVAL TO MAKE THEIR MARKETRISK RATINGS PUBLIC WHICH ALL BUT THE TAMEST FUNDS WOULD BE RELUCTANT TO ALLOW RISK HAS NEVER BEEN A REAL MARKETING TOOL FOR MUTUAL FUNDS SAYS S&P CHAIRMAN LEO C O'NEILL TO PROD FUNDS TO SIGN UP S&P WILL BE TAKING A CARROTANDSTICK APPROACH IT WILL COMPUTE MARKETRISK RATINGS FREE OF CHARGE FOR ALL OF THE 100 FUNDS THAT ALREADY CARRY ITS CREDIT RATINGS AND IT WILL DO SO WHETHER THE FUNDS WANT IT OR NOT CREDIT RATINGS MEASURE THE ABILITY OF THE BONDS' ISSUERS TO REPAY THEIR DEBTS BUT THAT'S HARDLY THE MAIN WORRY FOR THESE DAYS THE RISK THAT'S INCREASING AND BECOMING PREDOMINANT FOR FUND INVESTORS ISN'T CREDIT RISK BUT MARKET RISK SAYS MR O'NEILL ONCE THE MARKETRISK RATINGS ARE COMPLETED S&P WON'T ALLOW THE FUNDS TO DISCLOSE HOW THEY RANK ON CREDITQUALITY ALONE IF A FUND WISHES TO PREVENT ITS MARKETRISK STANDING FROM BECOMING PUBLIC ITS ONLY RECOURSE IS TO SEVER ITS RELATIONSHIP WITH S&P WE'LL LOSE SOME CUSTOMERS OVER THIS SAYS MR O'NEILL BUT BASED ON THE FUNDS' RESPONSE SO FAR HE EXPECTS A VAST MAJORITY OF THE FUNDS THAT ALREADY CARRY S&P CREDIT RATINGS TO SUPPORT THE NEW PRODUCT HOWEVER EVEN FUNDS THAT AGREE TO GO ALONG WON'T FIND IT EASY TO GET THE RESULTS TO THEIR SHAREHOLDERS THAT'S BECAUSE S&P WON'T ALLOW FUNDS TO PUBLISH THEIR RISK STANDINGS IN PROSPECTUSES OR TO ADVERTISE THEM IN NEWSPAPERS ON TELEVISION OR ON THE RADIO THE REASON IS THAT UNDER EXISTING SECURITIES LAWS S&P WOULD THEN BE EXPOSED TO POTENTIAL LAWSUITS FROM UNHAPPY INVESTORS WHILE S&P SAYS IT'S TALKING TO THE SECURITIES AND EXCHANGE COMMISSION TO RELIEVE ITSELF OF THAT LIABILITY REGULATORS SO FAR AREN'T ENTHUSIASTIC ABOUT LETTING S&P OFF THE HOOK MEANTIME SMALL INVESTORS CAN ONLY GET ACCESS TO THE RATINGS THROUGH BROKER RECOMMENDATIONS FUND SALES PITCHES OR BY GETTING FREE COPIES FROM S&P DIRECTLY S&P'S PUSH FOR LENIENCY ON THE LEGAL FRONT COINCIDES WITH RISING CONCERNS AMONG REGULATORS OVER THE HELTERSKELTER SHIFT OF MONEY INTO BOND FUNDS PARTICULARLY FROM INDIVIDUALS FLEEING CERTIFICATES OF DEPOSIT AND OTHER LOWYIELDING INVESTMENTS IN JANUARY THROUGH SEPTEMBER ALONE BOND FUNDS NETTED 935 BILLION OF NEW MONEY NOT COUNTING REINVESTED DIVIDENDS ACCORDING TO THE INVESTMENT COMPANY INSTITUTE WITH THE BOND MARKET APPROACHING THE TOP OF ONE OF ITS LONGESTRUNNING RALLIES EVER DREAD IS GROWING THAT A MARKET REVERSAL COULD TRIGGER A BACKLASH OF REDEMPTIONS FROM FUNDS A LOT OF FORMER SAVERS ARE NOW INVESTORS AS YOU CAN SEE FROM THE CAPITAL FLOWS INTO FUNDS IN THE LAST COUPLE OF YEARS SAYS SEC COMMISSIONER J CARTER BEESE GOOD DISCLOSURE WOULD FOCUS THOSE FORMER SAVERS ON THE FACT THAT THEY ARE NOW IN MARKETBASED INSTRUMENTS BEARING MARKET RISK HE SAYS S&P ISN'T THE FIRST COMPANY TO TRY TO SPELL OUT THE HAZARDS THAT LURK IN BOND FUND PORTFOLIOS FITCH INVESTORS SERVICE INC LAST MAY LAUNCHED A SIMILAR PROJECT TO AWARD STABILITY RATINGS TO FUNDS BUT SO FAR IT HAS ATTRACTED ONLY ONE CUSTOMER WILLING TO PAY FOR THE SERVICE THE BAIRD ADJUSTABLE RATE INCOME FUND WHICH CAME AWAY WITH A TOP GRADE MORNINGSTAR INC THE CHICAGOBASED COMPANY THAT TRACKS MUTUAL FUNDS ALSO PUBLISHES RISK RATINGS BUT UNLIKE FITCH AND S&P THOSE RATINGS LOOK AT PAST PERFORMANCE DATA ONLY NOT HOW VOLATILE THE FUND IS LIKELY TO BE IN THE FUTURE NOR DOES MORNINGSTAR CHARGE THE FUNDS FOR THE SERVICE WHILE ITS RESULTS ARE LESS SOPHISTICATED AND LESS MEANINGFUL THAN S&P'S RISK ANALYSIS MORNINGSTAR CAN AT LEAST LET FUNDS BROADCAST THE RESULTS WITHOUT WORRYING ABOUT BEING SUED DESPITE THE OBSTACLES S&P FACES ITS MARKETRISK INITIATIVE DOES STRIKE A CHORD WITH MANY FUND EXECUTIVES WHO HAVE BEEN TRYING TO EDUCATE CUSTOMERS ABOUT THE POTENTIAL HAZARDS THEY FACE THE REAL BENEFIT I SEE FROM S&P'S NEW RATINGS IS THAT THEY WOULD FORCE A FUND GROUP TO TALK ABOUT RISK WITH THEIR SHAREHOLDERS SAYS JOHN SCHNIEDWIND A SENIOR EXECUTIVE VICE PRESIDENT AT BENHAM MANAGEMENT CORP A MUTUALFUND MANAGER FOR INSTANCE SEVERAL OF BENHAM'S FUNDS SUCH AS ITS LONGTERM ZEROCOUPON TREASURY FUNDS ARE HIGHLY SENSITIVE TO INTEREST RATE CHANGES AND SO WOULD LOOK VERY RISKY UNDER S&P'S NEW APPROACH AT FIRST I THOUGHT THE NEW RATINGS WERE A BIT OF A SHOCK SAYS MR SCHNIEDWIND BUT THE WAY THEY'RE GOING ABOUT IT THEY'LL GET A FAIR NUMBER OF FUNDS TO GO ALONG HE SAYS THE JURY IS STILL OUT ON WHETHER BENHAM WILL AGREE TO RELEASE ITS MARKETRISK RATINGS BUT THAT WITHDRAWAL FROM THE SERVICE COULD HAVE MORE NEGATIVE CONNOTATIONS THAN THE RATING ITSELF THE MARKETRISK GRADES WHICH WILL BE UPDATED MONTHLY START BY GAUGING HOW STABLE A BOND FUND HAS BEEN IN THE PAST BASED ON THE VOLATILITY OF ITS TOTAL RETURN WHICH INCLUDES PRICE CHANGE PLUS YIELD THEN TO ESTIMATE FUTURE RISK S&P SUBJECTS FUNDS TO COMPLEX PORTFOLIO ANALYSIS INCLUDING STRESS TESTING THEM UNDER VARIOUS INTERESTRATE SCENARIOS AND MODELING THE CHANGEABLE NATURE OF BONDS WITH QUIRKY DERIVATIVES EMBEDDED IN THEM DERIVATIVES ARE INVESTMENTS WHOSE RETURNS ARE DERIVED FROM THE PRICE MOVEMENT OF ONE OR MORE ASSETS SUCH AS CURRENCIES STOCKS COMMODITIES OR INTEREST RATES A GOOD EXAMPLE IS INTEREST ONLY MORTGAGE DERIVATIVES OR IOS WHICH PAY RETURNS BASED SOLELY ON THE INTEREST INCOME GENERATED BY A GROUP OF HOME MORTGAGES MOST IOS CARRY TRIPLEA CREDIT RATINGS AND THEY BECAME POPULAR WITH MANY BOND FUNDS WHO USED THEM TO BOOST INCOME BUT BECAUSE THE CASH FLOWS IOS GENERATE DEPEND ON THE UNDERLYING MORTGAGES NOT BEING PAID OFF EARLY IO PRICES CAN DROP UNEXPECTEDLY WHEN HOMEOWNERS RUSH TO REFINANCE WHICH HAPPENED THIS YEAR WHEN INTEREST RATES FELL INVESTORS WHO LOST MONEY IN TRIPLEA RATED FUNDS THAT INVESTED HEAVILY IN IOS ARE NOW CRYING FOUL LAST MONTH SHAREHOLDERS OF ONE SUCH FUND HYPERION 1999 TERM TRUST SUED THE MANAGER FOR FALSELY REPRESENTING HOW SAFE THE FUND WAS THE LAWSUIT TOGETHER WITH RECENT TOUGH TALK FROM REGULATORS HAS MADE RISK DISCLOSURE A HOT ISSUE FOR MUTUAL FUNDS LATELY TO COME UP WITH ITS RISK ESTIMATES S&P HIRED CONSULTANTS WHO ARE EXPERT IN MODELING BOND PORTFOLIO VOLATILITY BUT BECAUSE SUCH RISK MODELS REQUIRE MAKING CERTAIN ASSUMPTIONS ON WHICH PEOPLE CAN REASONABLY DISAGREE THEY'RE THE MOST CONTROVERSIAL ELEMENT OF THE NEW RATINGS ASIDE FROM INTERESTRATE SENSITIVITY FUNDS WILL BE ASSESSED FOR HIDDEN RISKS SUCH AS LIQUIDITY OR HOW EASILY THEIR PORTFOLIOS CAN BE TRADED WITHOUT DISRUPTING BOND PRICES CREDIT QUALITY AND HOW PREDICTABLE THEIR BEHAVIOR SHOULD BE AS MARKET CONDITIONS CHANGE WE PENALIZE THE HIDDEN RISKS MUCH MORE THAN OTHER RISKS SAYS S&P MANAGING DIRECTOR SANFORD BRAGG OUTPUT FROM THE RISK MODELS MAY ALSO BE ADJUSTED BASED ON S&P'S REVIEW OF FUND MANAGERS THESE QUALITY GRADES WILL INCLUDE JUDGMENTS ON HOW WELL MANAGERS STICK TO THEIR STATED INVESTMENT OBJECTIVES AND HOW CONSISTENTLY THEY DEAL WITH RISK OVER TIME ASIDE FROM A LETTER GRADE OF OVERALL MARKET RISK WHICH WILL RESEMBLE S&P'S CURRENT CREDIT RATINGS S&P WILL PUBLISH A FULLPAGE EXPLANATION OF WHICH RISKS ARE DRIVING A GIVEN FUND'S RATING THE BOND MARKET TOOK ANOTHER POUNDING FRIDAY AS NEWS OF CONTINUED EMPLOYMENT GROWTH ADDED FUEL TO THE FEARS OF A STRONGER ECONOMY THAT HAVE SENT PRICES OF TREASURY NOTES AND BONDS TUMBLING IN RECENT WEEKS THE PRICE OF THE BENCHMARK 30YEAR BOND DROPPED ABOUT 1/2 POINT OR ABOUT 5 FOR EACH 1000 FACE AMOUNT TO 100 16/32 AS ITS YIELD ROSE TO 620 FROM THURSDAY'S 617 THE PRICE OF THE 10YEAR NOTE DROPPED ABOUT 3/8 POINT AS ITS YIELD ROSE TO 572 FROM 567 PRICES OF TREASURY SECURITIES FELL SHARPLY FOLLOWING NEWS FROM THE LABOR DEPARTMENT THAT NONFARM EMPLOYMENT ROSE 177000 DURING OCTOBER WHILE THE INCREASE WAS ONLY SLIGHTLY HIGHER THAN ECONOMISTS' EXPECTATIONS OF A 154000 GAIN THE SELLING OF THE PAST THREE WEEKS CONTINUED THE REPORT WAS NOT TERRIBLY DIFFERENT FROM WHAT WE HAD ANTICIPATED BUT IT DOES SUPPORT THE IMPRESSION OF A PICKUP OF ACTIVITY SAID MARILYN SCHAJA MONEY MARKET ECONOMIST AT DONALDSON LUFKIN & JENRETTE THE PRICE OF THE 30YEAR TREASURY HAS DROPPED NEARLY SIX POINTS SINCE OCT 15 OR NEARLY 60 FOR EACH 1000 FACE AMOUNT ITS YIELD WHICH MOVES INVERSELY TO PRICE HAS SOARED FROM 579 THE TENOR OF THE EMPLOYMENT REPORT DIDN'T ALLEVIATE THE MARKET ANXIETY ABOUT POTENTIAL STRENGTH IN THE ECONOMY SAID WILLIAM V SULLIVAN JR SENIOR VICE PRESIDENT AT DEAN WITTER REYNOLDS AND THERE WAS STILL AN APPETITE TO SELL THE MARKET OFF PARTICULARLY AT THE LONGER END THE EMPLOYMENT DATA ALSO SPARKED SOME SELLING OF SHORTTERM SECURITIES AMID SCATTERED TALK THAT THE FEDERAL RESERVE COULD TIGHTEN MONETARY POLICY EARLY NEXT YEAR BUT ANALYSTS URGED CAUTION I DON'T THINK IT MEANS THE FED IS GOING TO CHANGE POLICY SOONER SAID MS SCHAJA WHAT IT DOES THOUGH IS LEND MORE SUPPORT TO THE VIEW THAT THE NEXT MOVE WILL BE A RAISING OF SHORTTERM INTEREST RATES FOR ANY MARKET PARTICIPANTS THAT WERE STILL HOPING FOR A LOWERING OF SHORTTERM RATES THE BULK OF THE SELLING FRIDAY WAS FROM THE WALL STREET DEALER COMMUNITY AND SPECULATIVE ACCOUNTS PARTICIPANTS SAID MOST OF THIS WAS TECHNICAL OR CHARTRELATED SAID MR SULLIVAN INSTITUTIONAL INVESTORS WHO HAD BEEN HEAVY SELLERS EARLY IN THE WEEK MOSTLY KEPT TO THE SIDELINES FRIDAY KEEPING MONEY MANAGERS OUT OF THE MARKET WAS A SENSE THAT THE MARKET COULD FURTHER DECLINE AS IT WORKS ITS WAY THROUGH THIS WEEK'S QUARTERLY REFUNDING AUCTIONS THERE ISN'T ANYBODY TO STEP UP AND AGGRESSIVELY BUY SECURITIES AHEAD OF THE REFUNDING MR SULLIVAN SAID THE TREASURY DEPARTMENT WILL AUCTION MORE THAN 70 BILLION OF BILLS AND NOTES INCLUDING 17 BILLION IN THREEYEAR NOTES TUESDAY AND 12 BILLION IN 10YEAR NOTES WEDNESDAY TRADERS AND INVESTORS ALSO WILL HAVE TO SWEAT OUT TWO SETS OF INFLATION DATA THE LABOR DEPARTMENT WILL REPORT ON OCTOBER PRODUCER PRICES TOMORROW AND CONSUMER PRICES WEDNESDAY THE BOND MARKET WILL BE CLOSED THURSDAY IN OBSERVANCE OF THE VETERAN'S DAY HOLIDAY THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9311080066 931108 LETTERS TO THE EDITOR JUST WHO ARE THE UNINSURED ON OCT 8 A LETTER TO THE EDITOR QUESTIONED THE VERACITY OF THE OFTREPEATED 37 MILLION AMERICANS WITHOUT HEALTH INSURANCE FIGURE HAVING READ THE FINE PRINT OF SEVERAL REPORTS RELEASED BY BOTH THE ADMINISTRATION AND CONGRESS I CAN PROVIDE SOME ANSWERS MANY AMERICANS HAVE BEEN SHOCKED TO LEARN THAT 37 MILLION OF THEIR FELLOW CITIZENS ARE WITHOUT HEALTH CARE THEY WOULD ALSO BE SHOCKED TO FIND THAT THIS NUMBER QUOTED OVER AND OVER BY THE PRESIDENT AND THE PRESS DOES NOT MEAN WHAT THEY HAVE BEEN LED TO BELIEVE OF THE 37 MILLION UNINSURED ABOUT 50 ARE WITHOUT INSURANCE FOR LESS THAN FOUR MONTHS AND ONLY 15 ARE WITHOUT COVERAGE FOR MORE THAN TWO YEARS MOST OF THE UNINSURED ARE PROBABLY WITHOUT INSURANCE ONLY WHILE IN THE PROCESS OF CHANGING JOBS SINCE FEDERAL LAW REQUIRES THAT EMPLOYEES WHO LOSE THEIR JOBS BE ALLOWED TO MAINTAIN THEIR INSURANCE AT THEIR OWN COST OF COURSE THESE PEOPLE ARE UNINSURED ONLY BECAUSE THEY CHOSE TO BE UNINSURED FURTHER THE 55 MILLION AMERICANS WHO ARE LONGTERM UNINSURED ARE NOT THE VERY POOR AFTER ALL THE POOREST HAVE INSURANCE THE GOVERNMENT SEES TO THAT THROUGH MEDICAID AND MEDICARE THE MIDDLE AND UPPERMIDDLE CLASSES GET INSURANCE THROUGH THEIR EMPLOYERS OR CAN AFFORD IT ON THE MARKET THE PEOPLE WE ARE TALKING ABOUT ARE PRIMARILY LOWER MIDDLE CLASS FOR THE MOST PART THEY HAVE JOBS THAT DO NOT PROVIDE THEM WITH INSURANCE HOWEVER THEY EARN ENOUGH MONEY TO BUY INSURANCE THEY LIKE THOSE BETWEEN JOBS CHOOSE NOT TO INSURE THEMSELVES AND FOR VERY GOOD REASONS TO UNDERSTAND HEALTH CARE ONE MUST UNDERSTAND THE PHENOMENON OF HEALTH INSURANCE FEW OF OUR GRANDPARENTS HAD HEALTH INSURANCE BEFORE WORLD WAR II FEWER THAN 10 OF AMERICANS HAD HEALTH INSURANCE OUR GRANDPARENTS LIKE TODAY'S UNINSURED PAID FOR HEALTH CARE WHEN THEY USED IT MOST OF US TODAY PAY FOR HEALTH CARE BIMONTHLY THROUGH OUR PAY CHECKS AND AS WE DO SO WE PAY FOR ANOTHER COMMODITY AS WELL PEACE OF MIND THE LONGTERM UNINSURED CONSISTING MOSTLY OF PEOPLE WHO ARE STRUGGLING TO CLIMB OUT OF POVERTY OR TO KEEP FROM FALLING IN CHOOSE NOT TO PAY FOR PEACE OF MIND THEY PREFER TO KEEP BREAD ON THE TABLE AND A ROOF OVER THEIR HEAD OR TO SAVE A BIT TO PROVIDE THE KIDS WITH A BETTER EDUCATION WHEN THEY GET SICK THEY PAY FOR MEDICAL CARE OUTOFPOCKET FOR MOST OF THEM THIS IS A GOOD DEAL THEIR OUTOFPOCKET EXPENSES NEVER ADD UP TO WHAT THEY WOULD HAVE PAID FOR INSURANCE AFTER ALL STUDIES SHOW THAT THE UNINSURED ARE BOTH YOUNGER AND HEALTHIER THAN THE AVERAGE AMERICAN OF COURSE DISASTER DOES STRIKE SOME FAMILIES AND THEY ARE FORCED INTO THE DEPTHS OF POVERTY WHERE THEY AVAIL THEMSELVES OF MEDICARE OR MEDICAID ON THE WHOLE THE UNINSURED MAKE THE RATIONAL DECISION THAT HEALTH INSURANCE IS A BAD DEAL GIVEN THEIR ECONOMIC SITUATION IT REDUCES THEIR PROSPECTS FOR IMPROVING THEIR CONDITION BUT NOW THE ADMINISTRATION TELLS THEM THAT THEIR EMPLOYERS WILL BE FORCED TO BUY INSURANCE FOR THEM WHERE WILL BUSINESS FIND THE RESOURCES TO PAY FOR IT MOST LIKELY BY HOLDING WAGES DOWN TO THE MINIMUM OR LAYING OFF INCREASINGLY EXPENSIVE WORKERS IN THE END THE UNINSURED ARE FORCED TO PAY FOR THEIR OWN INSURANCE THROUGH LOWER WAGES OR FEWER OPPORTUNITIES SOMETHING THEY WOULD NOT DO IF GIVEN THE CHOICE THERE CERTAINLY ARE PROBLEMS WITH OUR HEALTH CARE SYSTEM BUT MOST CAN BE RESOLVED WITH SIMPLE AND INEXPENSIVE SOLUTIONS A HUGE NEW BUREAUCRACY AND MASSIVE GOVERNMENT INTERVENTION ARE NOT NECESSARY A SOURCE FOR THE 37 MILLION FIGURE IS ON PAGE 73 OF WHY WE SPEND TOO MUCH ON HEALTH CARE BY JOSEPH L BAST APPROXIMATELY 37 MILLION AMERICANS CONSTITUTING 145 PERCENT OF THE POPULATION OF THE US WERE ESTIMATED TO BE WITHOUT INSURANCE AT SOME TIME IN 1991 MR BAST'S SOURCE WAS THE MARCH 1992 EMPLOYEE BENEFIT RESEARCH INSTITUTE REPORT HE GOES ON TO SAY WHILE CONSIDERABLE PRESS ATTENTION HAS BEEN DEVOTED TO THE NUMBER OF UNINSURED LESS HAS BEEN PAID TO WHO THEY ARE AND WHY THEY ARE NOT INSURED AN INVESTIGATION OF THESE QUESTIONS REVEALS THAT LACK OF INSURANCE IN MOST CASES IS A SHORTTERM PHENOMENON THAT ONLY RARELY IS THE RESULT OF BEING DENIED COVERAGE MOREOVER THE UNINSURED TEND TO BE YOUNGER AND HEALTHIER THAN THE GENERAL PUBLIC AND A SURPRISINGLY LARGE NUMBER HAVE INCOMES WELL ABOVE POVERTY ACCORDING TO THE US BUREAU OF THE CENSUS NEARLY ONEQUARTER OF THE US POPULATION WAS WITHOUT INSURANCE FOR SOME PERIOD OF TIME DURING THE 28 MONTHS FROM FEBRUARY 1985 THROUGH MAY 1987 HOWEVER ONLY 43 PERCENT OF THE POPULATION WAS WITHOUT INSURANCE FOR THE ENTIRE PERIOD A STUDY BY THE URBAN INSTITUTE FOUND THAT HALF OF ALL UNINSURED LACK INSURANCE FOR FOUR MONTHS OR LESS WHILE ONLY 15 PERCENT ARE INSURED FOR MORE THAN 24 MONTHS SEVENTYSIX PERCENT OF ALL UNINSURED SPELLS END WITHIN A 12MONTH PERIOD 9311080065 931108 KELLOGG TRYS TO KEEP CEREAL SALES CRISP AS RIVALS NIBBLE AWAY AT MARKET SHARE BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE THREAT FROM PRIVATE LABELS TO THE BIG NATIONAL BREAKFASTCEREAL BRANDS MAY BE MORE SNAP AND CRACKLE THAN SUBSTANCE HOUSEBRAND KNOCKOFFS OF RICE KRISPIES AND OTHER POPULAR BRANDS HAVE SHOWN ONLY MODEST GROWTH SO FAR THIS YEAR TO ACHIEVE AN 86 SHARE OF THE US MARKET KELLOGG CO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ARNOLD G LANGBO TOLD SECURITIES ANALYSTS MOREOVER HE INDICATED THAT IN RECENT WEEKS THE PRIVATELABEL MARKET SHARE HAS BEEN SINKING WE CAN CONTAIN PRIVATE LABEL AT OR ABOUT ITS CURRENT SHARE MR LANGBO ASSERTED WE KNOW HOW TO MANAGE IT THAT IS A SWITCH FROM THE MESSAGE HIS PREDECESSOR DELIVERED TO WALL STREET JUST THREE YEARS AGO AT THAT TIME WILLIAM E LAMOTHE DESCRIBED PRIVATELABEL COMPETITION AS A MAJOR MENACE TO THE COMPANY'S BUSINESS KELLOGG'S SHARES OF THE GLOBAL MARKET AND THE NORTH AMERICAN MARKET HAVE SLIPPED SOMEWHAT THIS YEAR MR LANGBO ACKNOWLEDGED BUT HE NOTED THAT THE COMPANY MAKES SEVEN OF THE 10 TOPSELLING COLD CEREALS IN THE WORLD ADDING THAT OUR OPPORTUNITY TO GROW THIS BUSINESS IS TRULY GLOBAL AND GIANT TO CAPITALIZE ON THAT OPPORTUNITY KELLOGG IS EXPANDING ITS OVERSEAS MANUFACTURING CAPABILITY AN ARGENTINE PLANT IS BEING ENLARGED TO SERVE THE FASTGROWING LATIN AMERICAN MARKET AND LATER THIS WEEK OFFICIALS WILL OPEN A CEREAL FACTORY IN RIGA LATVIA TO SERVE THE BALTIC STATES BELORUSSIA AND PARTS OF THE RUSSIAN REPUBLIC INCLUDING ST PETERSBURG WE ANTICIPATE INTENSE DEMAND FOR OUR PRODUCTS THERE THE KELLOGG CEO SAID KELLOGG BASED IN BATTLE CREEK MICH ALSO IS BUILDING A CEREALMAKING FACILITY IN BOMBAY INDIA DUE TO OPEN IN MID1994 AND IT RECENTLY BROKE GROUND ON A PLANT IN CANTON CHINA BY 2000 KELLOGG EXPECTS TO BE REACHING ONE BILLION POTENTENTIAL NEW CUSTOMERS WORLDWIDE MR LANGBO SAID TERMING READYTOEAT CEREAL A GREAT GROWTH STORY THE ANALYSTS AND PORTFOLIO MANAGERS WHO HEARD HIM APPARENTLY AGREED AFTER MR LANGBO'S PRESENTATION KELLOGG STOCK ROSE 1375 A SHARE TO CLOSE AT 56125 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING OTHER CEREAL STOCKS ALSO ROSE ALTHOUGH THAT OF RALSTONRALSTON PURINA CO A BIG PRODUCER OF PRIVATELABEL CEREALS CLOSED DOWN SLIGHTLY KELLOGG CURRENTLY HOLDS A WORLDWIDE MARKET SHARE OF 43 BY VOLUME AND A 37 SHARE OF THE 8 BILLION US CEREAL MARKET BOTH FIGURES ARE DOWN FROM FIVE YEARS AGO ARCHRIVAL GENERAL MILLS INC'S OVERSEAS JOINT VENTURE WITH NESTLE SA CALLED CEREAL PARTNERS WORLDWIDE HAS BEEN MAKING INROADS ON KELLOGG'S LONGHELD LEADERSHIP ABROAD THEY HURT US BIGTIME IN MEXICO KELLOGG'S BIGGEST LATINAMERICAN MARKET MR LANGBO ADMITTED BUT SAID THE PARTNERSHIP WAS SUFFERING SOME SHARE LOSS IN EUROPE AFTER ITS INITIAL SUCCESS OVERALL HE PUT CPW'S GLOBAL SHARE AT ABOUT 17 BY VOLUME KELLOGG ALSO HAS LOST BUSINESS IN THE ASIANPACIFIC MARKET IN RECENT MONTHS BUT MR LANGBO ATTRIBUTED THAT PRIMARILY TO RECESSION ECONOMIES HE SAID THE LARGE AUSTRALIAN MARKET SHOWS SIGNS OF REBOUNDING AND WE SEE SOME INDICATIONS OF A TURNAROUND IN THE JAPANESE MARKET AFTER A FOURYEAR SLIDE MR LANGBO EXPRESSED CONFIDENCE THAT ANNUAL VOLUME GROWTH OF BETWEEN 25 AND 3 COULD BE SUSTAINED IN NORTH AMERICA THE COMPANY'S BIGGEST MARKET IN THE PAST YEAR KELLOGG'S SHARE OF THAT MARKET HAS DECLINED 13 TO 37 COMPARED WITH 24 FOR GENERAL MILLS AND 16 FOR THE POST CEREAL DIVISION OF PHILIP MORRIS COS ACCORDING TO FIGURES KELLOGG DISTRIBUTED ASKED HOW KELLOGG INTENDED TO RESPOND TO PROMOTIONAL BLITZES AND OTHER MARKETERODING CHALLENGES BY RIVALS IN THE US MR LANGBO SAID KELLOGG WOULD NOT TOLERATE LOSING SHARE HE ALSO WAS HOPEFUL THAT THE COMPANY COULD MAINTAIN RECENT PRICE INCREASES AND NOT BE DRAWN INTO A COSTLY COUPON WAR THAT WOULD SHRINK PROFIT MARGINS THIS YEAR KELLOGG'S OPERATING MARGINS SHOULD BE THE HIGHEST IN FIVE YEARS MR LANGBO TOLD ANALYSTS WHILE OVER THE LONGTERM HE BELIEVES KELLOGG CAN ACHIEVE LOW DOUBLEDIGIT EARNINGS GROWTH MR LANGBO SAID THIS YEAR FOREIGN EXCHANGE WOULD LIMIT EARNINGS TO SINGLEDIGIT GAINS NONETHELESS PERSHARE PROFIT WILL BE AT RECORD LEVELS HE PREDICTED LAST YEAR BEFORE ACCOUNTING CHANGES KELLOGG REPORTED PERSHARE EARNINGS OF 286 THE PREVIOUS NET HIGH WAS 251 A SHARE IN 1991 KELLOGG HAS HELPED PERSHARE PROSPECTS BY REPURCHASING ABOUT 10 MILLION SHARES THIS YEAR MR LANGBO SAID THE COMPANY'S 600 MILLION STOCK BUYBACK AUTHORIZATION LIKELY WOULD BE USED UP BY YEAR END AT AN AVERAGE COST OF 57 A SHARE IN HIS ANNUAL REVIEW OF THE WORLD'S BIGGEST CEREALEATING COUNTRIES MR LANGBO SAID IRELAND CONTINUES TO LEAD THE PACK WITH A PERCAPITA CONSUMPTION OF 172 POUNDS A YEAR THE UNITED KINGDOM IS SECOND AT 136 POUNDS AUSTRALIA THIRD AT 13 POUNDS FOLLOWED BY NEW ZEALAND AND CANADA THE US IS SIXTH AT 101 POUNDS BUT THE KELLOGG CHAIRMAN SAID A CONSUMPTION RATE OF PERHAPS 15 POUNDS A PERSON WAS ACHIEVABLE