LONDON STOCK PRICES EASED AS STRENGTH OF BLUE CHIPS SUCH AS PHARMACEUTICALS WAS COUNTERED BY A SHARP SELLOFF AMONG FOOD RETAILERS FRANKFURT SHARES WHICH SCORED A RECORD THE PREVIOUS DAY RETREATED TO FINISH BROADLY LOWER BUT STOCKHOLM EQUITIES SOARED TO A RECORD HIGH AS THE APPOINTMENT OF A NEW SWEDISH CENTRAL BANK GOVERNOR SPURRED HOPES FOR LOWER INTEREST RATES HONG KONG SHARES AFTER A RALLY THAT WAS CAPPED BY THREE CONSECUTIVE CLOSING HIGHS PLUNGED TO HALT THE MARKET'S WINNING STREAK AT SEVEN SESSIONS THE TOKYO EXCHANGE WAS CLOSED WEDNESDAY FOR A JAPANESE HOLIDAY ON THURSDAY IN TOKYO THE NIKKEI 225STOCK INDEX EASED 1810 POINTS FROM TUESDAY'S CLOSE TO END THE MORNING SESSION AT 1936314 WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11303 DOWN 059 REFLECTING LOWER MARKETS IN ALL REGIONS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 18198 UP 406 OR 23 WITH GOLDEN HOPE OF MALAYSIA POSTING AN 8 GAIN IN ITS LOCAL CURRENCY PIPELINES STOCKS TRAILED AT 14144 DOWN 427 OR 29 WITH WILLIAMS OF THE US SLIDING 71 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DECLINED 18 POINTS TO 31623 THE FT 30STOCK INDEX SLIPPED 37 POINTS TO 23837 VOLUME WAS 6142 MILLION SHARES COMPARED WITH 6644 MILLION SHARES A DAY EARLIER FOOD RETAILERS REELED FOLLOWING SUPERMARKET PRICE CUTS AND A WARNING OF PRESSURE ON PROFIT MARGINS BUT THAT SECTOR'S DECLINES WERE PARTLY OFFSET BY GAINS IN DRUG ISSUES WHICH ATTRACTED BARGAIN HUNTERS AFTER RECENT DROPS THE INTERESTRATE OUTLOOK CONTRIBUTED TO UNCERTAINTY IN THE MARKET AFTER THE BRITISH CENTRAL BANK LATE TUESDAY WARNED THAT INFLATION COULD RISE IN EARLY 1994 CONFIRMING THAT LENDINGRATE REDUCTIONS AREN'T LIKELY TO BE AS BIG OR COME AS SOON AS EXPECTED IN FRANKFURT THE DAX 30STOCK INDEX FELL 1122 POINTS TO 208436 BARELY ABOVE THE INTRADAY LOW OF 208310 ONLY TWO ISSUES IN THE INDEX ROSE WHILE 28 FELL THE DAX ADVANCED TO THE SESSION'S PEAK OF 210160 BEFORE SLIPPING AT MIDDAY AFTER THE RELEASE OF PRELIMINARY DATA ON SEPTEMBER MANUFACTURING ORDERS FOR WESTERN GERMANY WHICH SHOWED A SLIGHT IMPROVEMENT FROM THE PREVIOUS MONTH BUT PRODUCERS STILL HAD EXCESS CAPACITY THOUGH FRESH LIQUIDITY CONTINUED TO POUR INTO THE MARKET PARTICIPANTS SAID IT COULD BE ON THE VERGE OF A SHORTTERM CONSOLIDATION AS SOME PROFITTAKING ALREADY BEGAN TO EMERGE IN PARIS SHARES ROSE SLIGHTLY IN LISTLESS ACTIVITY AS A LACK OF NEWS CONTINUED TO HOLD TRADING TO A TIGHT RANGE THE SESSION ALSO WAS MARRED AGAIN BY A TECHNICAL GLITCH WHICH BRIEFLY HALTED TRADING IN ABOUT 120 COMPANIES IN AMSTERDAM STOCKS SURGED PACED BY A RALLY IN THE CHEMICAL SECTOR ON STRONGERTHANEXPECTED THIRDQUARTER EARNINGS THE GAINS CAME DESPITE A SOFTER US DOLLAR AND ONLY SLIGHT RISES IN DUTCH BOND PRICES IN MILAN SHARES TUMBLED PRESSURED BY LOSSES IN THE AUTO SECTOR IN MADRID STOCKS OPENED TEPIDLY BUT PICKED UP SPEED AFTER THE SPANISH TREASURY LOWERED THE MARGINAL YIELD ON ITS ONEYEAR BILLS AND THE MARKET FINISHED HIGHER IN ZURICH PRICES SURVIVED A LATE BOUT OF PROFITTAKING TO FINISH SLIGHTLY HIGHER IN BRUSSELS THE MARKET WAS NARROWLY MIXED BUT THE MAIN INDEX EDGED UP TO A NEW HIGH FOR THE THIRD CONSECUTIVE DAY IN STOCKHOLM SHARES CLIMBED TO BREAK THE PREVIOUS HIGH SET LAST FRIDAY THE RALLY AND HEAVY VOLUME FOLLOWED THE APPOINTMENT OF URBAN BAECKSTROEM AS GOVERNOR OF SWEDEN'S CENTRAL BANK EFFECTIVE IN JANUARY THE NEW CHIEF IS BELIEVED TO FAVOR REDUCTIONS IN SWEDISH LENDING RATES AT A FASTER RATE THAN HIS PREDECESSOR DOES IN HONG KONG THE MAIN INDEX SLUMPED 2908 POINTS OR 3 TO 935211 THOUGH IT STILL REMAINED UP 70 FOR THIS YEAR AND THE CONSOLIDATION WASN'T CONSIDERED A SURPRISE STOCKS DROPPED EARLY WEDNESDAY BUT LARGELY RECOVERED WHEN BARGAINHUNTING NARROWED THE EXTENT OF THE LOSSES THEN VIGOROUS SELLING RESUMED LED BY FOREIGN INSTITUTIONAL INVESTORS TAKING PROFITS PUSHING PRICES DOWN TO THEIR INTRADAY LOWS AT THE END OF THE SESSION PROPERTY STOCKS WERE HIT HARDEST IN SYDNEY STOCKS RALLIED FROM AFTERNOON LOWS BUT BLUE CHIPS STILL FINISHED THE SESSION WITH LOSSES PARTLY BECAUSE OF THE HOLIDAY IN JAPAN PARTICIPATION IN THE AUSTRALIAN SESSION WAS THIN AND SELLERS HAD TO ACCEPT LOWER PRICES IN SINGAPORE THE BROADER MARKET ENDED MIXED IN A CONSOLIDATION BUT THE BENCHMARK INDEX ROSE TO A RECORD PUSHED UP BY THE GOVERNMENT'S RECENT ANNOUNCEMENT IT WANTED TO MAKE STATE MEDIA SHARES MORE AFFORDABLE IN TAIPEI SHARE PRICES SHOT UP TO ANOTHER FIVEMONTH HIGH IN HEAVY DEALINGS ON CONFIDENCE THAT THE TAIWAN GOVERNMENT WOULD BOLSTER THE MARKET PRIOR TO LOCAL ELECTIONS THIS MONTH AND IN MANILA STOCKS CLIMBED TO A RECORD EXTENDING A RECENT RALLY BUT IN WELLINGTON PRICES EASED FOR THE FIRST TIME IN NINE SESSIONS AND IN SEOUL STOCKS FELL AFTER A LATE SELLING WAVE BANGKOK SHARES' RECENT HOT STREAK ALSO ENDED AS STOCKS SLID 4 ON PROFITTAKING AMONG CORPORATE DEVELOPMENTS IN FRANKFURT DAIMLERBENZ LOST 9 MARKS OR 12 TO 743 MARKS 43607 THE INDUSTRIAL COMPANY ESTIMATED THAT IT WILL POST A GROUP NET LOSS OF 2 BILLION MARKS 117 BILLION FOR THE FIRST NINE MONTHS IN THE FIRST HALF DAIMLER'S DEFICIT WAS LESS THAN 1 BILLION MARKS LOSSES BALLOONED IN THE THIRD QUARTER FROM HEAVY ONETIME CHARGES ESTIMATED AT 15 BILLION MARKS AGAINST EARNINGS TO COVER COSTS OF LAYOFFS AND A RESTRUCTURING DAIMLER PLANS TO SHED 49000 OF ITS 365000 JOBS BY 1996 IN RESPONSE TO MOUNTING LOSSES AND SHRINKING MARKETS HERE ARE THE PRICE TRENDS ON THE WORLD'S MAJOR 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 1960 EQUALLING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9311040097 931104 POLITICS & POLICY ANTICRIME MEASURES TERM LIMITS PASS IN REFERENDUMS SCHOOL VOUCHERS LOSE BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL DISGRUNTLED VOTERS AROUND THE NATION SUPPORTED ANTICRIME MEASURES CURBS ON FUTURE TAXES AND TERM LIMITS BUT THEY VOTED DOWN SCHOOL VOUCHERS IN CALIFORNIA BY A HEFTY MARGIN CALIFORNIA'S CONTROVERSIAL SCHOOLVOUCHER INITIATIVE PROPOSITION 174 WAS SOUNDLY REJECTED BY A MARGIN OF 697 TO 303 THE MEASURE WOULD HAVE AMENDED THE STATE CONSTITUTION TO GRANT PARENTS 2600 IN TAXFUNDED VOUCHERS FOR USE TOWARD TUITION AT PRIVATE SCHOOLS AND CERTAIN INDEPENDENT PUBLIC SCHOOLS CRITICS OF THE PROPOSAL WHO WERE BACKED BY THE POWERFUL NATIONAL EDUCATION ASSOCIATION TEACHERS' UNION ARGUED THAT THE MEASURE WOULD DEBILITATE PUBLIC SCHOOLS BADLY OUTSPENT PROPONENTS OF PROPOSITION 174 WERE DEBATING WHEN AND HOW TO REGROUP SOME SUPPORTERS ARE TALKING ABOUT PUTTING ANOTHER INITIATIVE ON THE BALLOT NEXT YEAR BUT SOME OF OUR POLITICAL PROFESSIONALS ARE RECOMMENDING WE SIT BACK AND REASSESS SAID SEAN WALSH SPOKESMAN FOR THE PROVOUCHER CAMPAIGN WHEN IT CAME TO CRIME THOUGH VOTERS WANTED CHANGE CALIFORNIANS JARRED BY LAST YEAR'S LOS ANGELES RIOTS AND WILDFIRES SET OFF BY ARSONISTS VOTED TO MAKE PERMANENT AN EXISTING HALFCENT SALES TAX TO PROVIDE 15 BILLION A YEAR FOR PUBLIC SAFETY IN WASHINGTON STATE TOUGH ANTICRIME INITIATIVE 593 PASSED BY AN OVERWHELMING MARGIN OF 76 TO 24 KNOWN AS THREE STRIKES AND YOU'RE OUT THE MEASURE SLAPS LIFE SENTENCES WITHOUT PAROLE ON ANYONE WITH THREE FELONY CONVICTIONS FOR SUCH CRIMES AS RAPE MANSLAUGHTER AND CHILD MOLESTATION I THINK THE WASHINGTON INITIATIVE WILL ENCOURAGE OTHER STATES TO GET TOUGHER ON LAW AND ORDER AND THE CALIFORNIA REFERENDUM WILL GET PEOPLE THINKING MORE ABOUT PAYING FOR IT SAID SHELDON KAMIENIECKI A POLITICALSCIENCE PROFESSOR AT THE UNIVERSITY OF SOUTHERN CALIFORNIA CRIME IS PROBABLY ABOUT TO GO INTO A NEW DIMENSION IN TERMS OF BEING AN ISSUE SAID KEVIN PHILLIPS A POLITICAL THEORIST IN WASHINGTON DC A TAX REVOLT IN WASHINGTON STATE WAS SET BACK BUT NOT PUT DOWN VOTERS REJECTED A MEASURE THAT WOULD HAVE ROLLED BACK MOST OF THE 12 BILLION IN NEW TAXES APPROVED BY THE LEGISLATURE BUT A COMPANION MEASURE INITIATIVE 601 SEEMED TO BE SUCCEEDING THE MEASURE WOULD REQUIRE VOTER APPROVAL OF TAX INCREASES AFTER 1995 IF THEY EXCEED A CEILING LINKED TO POPULATION AND ECONOMIC GROWTH THE VOTE TUESDAY WAS 505 TO 495 IN FAVOR OF THE PROPOSAL WITH A RECORD NUMBER OF ABSENTEE BALLOTS TO BE COUNTED OVER THE NEXT FEW DAYS WE'RE HAPPY THAT VOTERS HAD THE WISDOM TO REJECT THE TAX ROLLBACK SAID A SPOKESMAN FOR WASHINGTON GOV MIKE LOWRY BUT HE ADDED THAT INITIATIVE 601 IF APPROVED MIGHT HAVE AN EVEN MORE SEVERE LONGTERM IMPACT ON THE BUDGET DON BRUNELL PRESIDENT OF THE ASSOCIATION OF WASHINGTON BUSINESS A MOSTLY SMALLBUSINESS ADVOCACY GROUP THAT LOBBIED FOR PASSAGE OF BOTH MEASURES SAID THE RESULTS SHOWED THAT VOTERS ARE VERY UPSET ABOUT HIGH TAXES I DON'T THINK THE TAX REVOLT IS DEAD OR CRUSHED BY ANY MEANS HE SAID FISCAL CONSERVATISM RULED IN TEXAS WHERE VOTERS OVERWHELMINGLY APPROVED A MEASURE REQUIRING A POPULAR VOTE BEFORE ANY STATE INCOME TAX IS ENACTED THAT MEASURE ALSO EARMARKS ANY SUCH TAX FOR EDUCATION AND VOTERS APPROVED A MEASURE GIVING PROPERTYTAX RELIEF TO BUSINESSES THAT BUY POLLUTIONCONTROL EQUIPMENT TWO UNSUCCESSFUL PROPOSALS IN TEXAS WOULD HAVE SET UP LOAN PROGRAMS FOR MINORITYOWNED BUSINESSES AND AGRICULTURE TOURISM BOARD LOSES ANTITAX SENTIMENT ALSO RAN HIGH IN COLORADO WHICH IN 1994 WILL BE THE ONLY STATE IN THE NATION WITHOUT A STATEFUNDED TOURISM BOARD AFTER VOTERS' REJECTED A RENEWAL OF THE 02 TOURISM TAX THAT HAS FUNDED THE BOARD FOR THE PAST DECADE RESIDENTS OF MAINE NEW JERSEY AND NEW YORK CITY PLACED NEW RESTRICTIONS ON THEIR ELECTED OFFICIALS MAINE VOTERS APPROVED EIGHTYEAR TERM LIMITS FOR STATE LAWMAKERS AND OTHER POLITICIANS WHILE NEW YORKERS VOTED BY A 3TO2 MARGIN FOR AN EIGHTYEAR LIMIT FOR ELECTED CITY OFFICIALS INCLUDING THE MAYOR NEW JERSEY RESIDENTS WENT A STEP FURTHER BY VOTING 2TO1 TO GIVE THEMSELVES INCREASED CONTROL OVER INCUMBENTS THEY APPROVED A CONSTITUTIONAL AMENDMENT TO PERMIT RECALL OF ELECTED OFFICIALS AFTER ONE YEAR IN OFFICE THE AMENDMENT MAKES ANY ELECTED OFFICIAL SUBJECT TO A RECALL ELECTION IF A PETITION IS SIGNED BY 25 OF ALL REGISTERED VOTERS VOTERS IN BERGEN COUNTY IN NORTHERN NEW JERSEY REJECTED A BID TO LIFT A BAN ON SUNDAY SHOPPING I'M RELIEVED THE SMALL STORES WON OUT OVER THE GIANT RETAILERS SAID DAVID LINDEN PRESIDENT OF THE HACKENSACK CHAMBER OF COMMERCE WHICH FOUGHT THE REPEAL MOVEMENT VOTERS IN CINCINNATI AND LEWISTON MAINE REPEALED ORDINANCES OUTLAWING DISCRIMINATION AGAINST HOMOSEXUALS CINCINNATI'S STATUTE HAD BEEN ADOPTED LAST YEAR BY THE CITY COUNCIL AS PART OF A BROADER STATUTE OUTLAWING DISCRIMINATION BASED ON RACE RELIGION APPALACHIAN HERITAGE OR SEXUAL ORIENTATION INDIANA VOTERS WERE DIVIDED OVER RIVERBOAT GAMBLING RESIDENTS OF HAMMOND AND EAST CHICAGO AND FOUR COUNTIES ALONG THE OHIO RIVER APPROVED GAMBLING BUT SEVERAL OTHER MUNICIPALITIES VOTED IT DOWN RECENTLY ENACTED LEGISLATION PERMITS RIVERBOAT GAMBLING ALONG LAKE MICHIGAN AND THE OHIO RIVER BUT REQUIRES VOTER APPROVAL TO PARTICIPATE RESIDENTS OF NEW YORK CITY'S STATEN ISLAND BOROUGH TOOK A MAJOR STEP TOWARD PEELING AWAY FROM THE BIG APPLE WITH 65 VOTING IN FAVOR OF SECESSION FROM THE CITY THE LANDSLIDE VOTE SENDS A RESOUNDING MESSAGE TO THE CITY'S FOUR LARGER BOROUGHS WITH TUESDAY'S VOTE STATEN ISLAND'S COMMITTEE ON SECESSION NOW HAS THREE MONTHS TO DEVISE LEGISLATION DEALING WITH VARIOUS TERMS OF DIVORCE AFTER THAT A BILL WILL GO TO THE NEW YORK STATE SENATE ASSEMBLY AND THE GOVERNOR FOR APPROVAL WHICH IS BY NO MEANS ASSURED THE WHOLE PROCESS COULD TAKE AS MUCH AS THREE YEARS BUT STATEN ISLAND BOROUGH PRESIDENT GUY V MOLINARI MAY JUMP THE GUN TODAY HE'LL FIRE FOUR VICTORY SHOTS ONE FOR EACH OF NEW YORK CITY'S OTHER BOROUGHS FROM THE ISLAND'S CIVIL WARERA CANNON TO SIGNIFY OUR DISCONTENT WITH BEING IN THE CITY AND EXPRESS OUR INTENT TO ADDRESS THIS ISSUE WITH TRUE REVOLUTIONARY SPIRIT A MOLINARI SPOKESMAN SAID AMONG THE ZANIER INITIATIVES ON STATE BALLOTS WAS A REQUEST BY SAN FRANCISCO POLICE OFFICER BOB GEARY TO BE ALLOWED TO USE HIS WOODEN PUPPET BRENDAN O'SMARTY WHILE ON DUTY MR GEARY APPEALED TO VOTERS AFTER A SUPERVISOR COMPLAINING THAT THE PUPPET MAKES THE DEPARTMENT LOOK RIDICULOUS ORDERED HIM TO ASK FOR WRITTEN PERMISSION BEFORE PATROLLING WITH HIS 38INCH PARTNER VOTERS SIDED WITH MR GEARY 51 TO 489 9311040096 931104 ECONOMY VEHICLE SALES REGISTERED SOLID GAIN IN LATE OCTOBER CAPPING STRONG MONTH BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT SALES OF NORTH AMERICANBUILT CARS AND LIGHT TRUCKS REGISTERED SOLID GAINS IN THE FINAL 10 DAYS OF OCTOBER CAPPING A STRONG MONTH AND SUGGESTING THAT HEALTHY DEMAND COULD CONTINUE THROUGH THE END OF THE YEAR THE FIGURES INDICATE THAT AUTO MAKERS STARTED THE 1994 MODEL YEAR WITH A SOLID 86 INCREASE IN VEHICLE SALES FROM A YEAR EARLIER FOR THE MONTH OF OCTOBER THE LIGHT TRUCK SEGMENT WAS PARTICULARLY STRONG AS FAVORABLE INTEREST RATES AND VALUEPRICED OFFERINGS CONTINUED TO PROVIDE A STRONG LURE FOR CONSUMERS IN THE OCT 2131 PERIOD SALES HIT A SEASONALLY ADJUSTED SELLING RATE OF 122 MILLION VEHICLES UP FROM LAST YEAR'S SELLING RATE OF 115 MILLION VEHICLES THE LATEOCTOBER PACE NEARLY MATCHED THE PREVIOUS 30 DAYS' SELLING PACE OF 123 MILLION VEHICLES LATEOCTOBER VEHICLE SALES INCLUDING SOME IMPORTS TOTALED 431674 CARS AND TRUCKS UP 9 FROM THE YEAREARLIER PERIOD NOT ALL OF THE IMPORTERS REPORT 10DAY SALES TOTAL SALES OF IMPORTS AND NORTH AMERICANBUILT VEHICLES FOR ALL OF OCTOBER CAME TO 1159165 COMPARED WITH 1108793 IN OCTOBER 1992 THE AUTO MAKERS LED BY DETROIT'S BIG THREE HAVE REBOUNDED FROM THEIR SUMMER SALES DOLDRUMS LARGELY BECAUSE OF BUDGETPRICED CARS AND HOTSELLING LIGHT TRUCKS AMONG THOSE SETTING THE SALES PACE GENERAL MOTORS CORP'S CHEVROLET DIVISION WHICH POSTED A 411 GAIN IN OCTOBER SALES FROM A YEAR EARLIER THE DIVISION'S SUCCESS CAME LARGELY FROM A 61 INCREASE IN SALES OF ITS BUDGETPRICED HIT THE CAVALIER LIKEWISE CHEVROLET'S TRUCK SALES IMPROVED 13 FROM A YEAR EARLIER CHEVY'S PERFORMANCE WAS ENOUGH TO HELP GM HALT A THREEMONTH SLIDE IN MARKET SHARE IN OCTOBER THE NO 1 AUTO MAKER'S SHARE OF THE US VEHICLE MARKET BOUNCED BACK TO 347 FROM A YEAREARLIER 333 GM HAS BEEN TRYING TO REBOUND FROM A GLITCHFILLED NEWMODEL LAUNCH THAT LEFT MANY OF ITS DEALERS WITHOUT ENOUGH 1994 PRODUCTS IN A STATEMENT YESTERDAY GM HAILED ITS OCTOBER SALES AS A SIGN THAT THE INVENTORY PROBLEMS ARE NOW OVER BUT DEALERS OUTSIDE OF DETROIT STILL REPORT SCARCE SUPPLIES OF SOME OF THE AUTO MAKER'S HOTTEST SELLERS STOCKS ARE PRETTY LEAN ON BOTH '93S AND '94S SAID CHARLES FISHER A DEALER IN KANSAS CITY MO THE NEW S10 PICKUP WE'VE GOT ONE IN STOCK SO WE CAN SHOW IT AS A DEMO IN FACT GM'S INVENTORY WOES MAY SOON SPREAD TO ITS SMALLCAR DIVISION SATURN TRUCK DRIVERS REPRESENTED BY THE TEAMSTERS UNION WHO TRANSPORT NEARLY HALF OF SATURN'S CARS TO DEALERS NATIONWIDE WALKED OUT ON STRIKE SATURDAY MEANWHILE GM'S DETROIT RIVALS ALSO REGISTERED MARKETSHARE GAINS FOR THE MONTH BUT IN THE CASE OF FORD MOTOR CO THE GAINS MOSTLY CAME FROM LIGHT TRUCK SALES FORD'S MARKET SHARE ROSE TO 262 IN OCTOBER FROM A YEAREARLIER SHARE OF 258 AS ITS TRUCK SALES SOARED 191 DURING THE MONTH HOWEVER FORD'S OCTOBER CAR SALES ONLY IMPROVED 35 FROM A YEAR EARLIER CHRYSLER CORP WHICH HAS CREDITED ITS RECENT PROFITABILITY TO ITS SALES MIX RICH WITH HIGHPROFIT UPSCALE MODELS GAINED A TENTH OF A PERCENTAGE POINT IN MARKET SHARE DURING OCTOBER ITS MARKET SHARE ROSE TO 141 ON THE STRENGTH OF A MIX OF HOTSELLERS THAT INCLUDED THE LH SEDANS AND JEEP GRAND CHEROKEE BUT VALUE IS WHAT APPEARS TO BE MOST IN DEMAND IN THE US CAR MARKET THE LOWPRICED CHEVY CAVALIER CHRYSLER DODGE SHADOW AND NISSAN MOTOR CO ALTIMA WERE AMONG A HOST OF CARS THAT ENJOYED STRONG OCTOBER SALES LARGELY DUE TO MARKETING EFFORTS THAT HINGED ON ATTRACTIVE STICKER PRICES A LOT OF VALUE AT A LOW PRICE IS ALMOST A GUARANTEED SUCCESS IN TODAY'S MARKET SAID CHRISTOPHER CEDERGREN AN AUTO INDUSTRY CONSULTANT WITH AUTOPACIFIC INC NISSAN'S CAR SALES ROSE NEARLY 12 IN OCTOBER LARGELY BECAUSE OF THE ALTIMA'S SUCCESS BUT THE JAPANESE AUTO MAKER'S GOOD FORTUNES WEREN'T ENOUGH TO HELP JAPANESE AUTO MAKERS IMPROVE THEIR SHARE OF THE US MARKET AS A GROUP JAPANESE AUTO MAKERS WATCHED THEIR MARKET SHARE DROP TO 222 IN OCTOBER FROM A YEAREARLIER SHARE OF 238 AFTER A 15 PERCENTAGEPOINT GAIN IN SEPTEMBER THE YEN'S STRONG RISE IN VALUE AGAINST THE DOLLAR HAS FORCED MANY OF JAPAN'S AUTO MAKERS TO RAISE PRICES SHARPLY ESSENTIALLY DROPPING MANY OF THEIR CARS AND TRUCKS OUT OF CONTENTION FOR MANY BUDGETSTRAPPED BUYERS AND IN OCTOBER THE YEN'S EFFECT APPEARED TO TAKE ITS TOLL ON MANY OF THE JAPANESE AUTO MAKERS' INDIVIDUAL MARKET SHARES TOYOTA MOTOR CORP LOST THE MOST MARKET SHARE IN OCTOBER AS ITS SHARE OF THE US MARKET SLID TO 62 FROM A YEAREARLIER 73 TOYOTA SOLD 72261 CARS AND TRUCKS IN THE US IN OCTOBER DOWN 68 FROM A YEAR EARLIER LIKEWISE HONDA MOTOR CO WHICH POSTED A MODEST 4 SALES GAIN FOR THE MONTH AND NISSAN WHICH SAW ITS CAR AND TRUCK SALES RISE 51 BOTH LOST TWO TENTHS OF A PERCENTAGE POINT IN OCTOBER MARKET SHARE FROM YEAREARLIER LEVELS MEANWHILE EUROPEAN AUTO MAKERS WHICH HAVE RECENTLY BEEN PURSUING THEIR OWN VALUEPRICING STRATEGIES IN THE US MARKET ALSO LOST MARKET SHARE IN OCTOBER AS THEIR SHARE SLIPPED TO 22 OF THE MARKET FROM A YEAREARLIER SHARE OF 23 STILL GERMAN AUTO MAKER BAYERISHE MOTOREN WERKE AG MANAGED TO POST A 314 SALES GAIN FOR THE MONTH MERCEDESBENZ AG SAW ITS OCTOBER SALES IMPROVE BY 51 WHILE VOLKSWAGEN AG ALSO SHOWED A 103 IMPROVEMENT FOR THE MONTH MEXICO FOR SALE IN THE US TOTALS INCLUDE ALL VEHICLE SALES REPORTED IN THE PERIOD EXCEPT TOURISTDELIVERY SALES OF IMPORTED MODELS A YEAR EARLIER PERCENTAGE DIFFERENCES BASED ON DAILY SALES RATE RATHER THAN SALES VOLUME 9311040095 931104 WHO'S NEWS BANKAMERICA CORP BANKAMERICA CORP SAN FRANCISCO WALTER E MASSEY 55YEAROLD PROVOST AND SENIOR VICE PRESIDENT FOR ACADEMIC AFFAIRS AT THE UNIVERSITY OF CALIFORNIA WAS NAMED TO THE BOARDS OF THIS BANK HOLDING COMPANY AND ITS MAIN OPERATING UNIT BANK OF AMERICA THE APPOINTMENT RAISES TO 19 THE NUMBER OF DIRECTORS ON THE BOARDS OF BOTH BANKAMERICA AND BANK OF AMERICA 9311040094 931104 TECHNOLOGY & HEALTH FTC EMPLOYS TRUST LAWS AGAINST DOCTORS' VENTURES BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE GOVERNMENT USED ANTITRUST LAWS FOR THE FIRST TIME TO FORCE CHANGES IN WHAT OFFICIALS SAID WERE ANTICOMPETITIVE JOINT VENTURES BETWEEN PHYSICIANS AND MEDICALEQUIPMENT COMPANIES THE COMPANIES BOTH IN THE SAN FRANCISCO BAY AREA SUPPLIED OXYGEN TO THE HOMES OF PATIENTS AND THEY WERE OWNED IN LARGE PART BY DOCTORS WHO PRESCRIBED THE OXYGEN UNDER PROPOSED AGREEMENTS WITH THE FEDERAL TRADE COMMISSION THE COMPANIES WILL REDUCE THEIR NUMBER OF PHYSICIANINVESTORS THE OWNERS OF THE COMPANIES HOME OXYGEN & MEDICAL EQUIPMENT OF SAN LEANDRO CALIF AND HOMECARE OXYGEN & MEDICAL EQUIPMENT OF CONCORD CALIF MADE UP ABOUT 60 OF THE LUNG SPECIALISTS IN EACH COMMUNITY THE FTC SAID TO SETTLE CHARGES THAT THE JOINT VENTURES VIOLATED ANTITRUST LAWS BY CONTROLLING SUCH A HIGH PERCENTAGE OF THE OXYGEN MARKET IN THE RESPECTIVE AREAS THE COMPANIES ACCEPTED A PROPOSED SETTLEMENT WITH THE FTC THAT SAYS NO MORE THAN 25 OF THE PULMONOLOGISTS OR LUNG SPECIALISTS IN THE RELEVANT AREAS MAY BE AFFILIATED WITH THE COMPANIES THE DOCTORS FORMED HOME OXYGEN BECAUSE THERE WAS NOT IN THEIR VIEW QUALITY HOMEOXYGEN SERVICE AVAILABLE FOR THEIR PATIENTS SAID DAVID ALEXANDER THE COMPANY'S LAWYER THERE WAS NO SUGGESTION HE SAID THAT THE DOCTORS HAD ANY ANTICOMPETITIVE PURPOSE OR EFFECT MR ALEXANDER AND ROBERT ENDERS THE HOMECARE OXYGEN LAWYER SAID THEIR CLIENTS ADMITTED NO LIABILITY BUT AGREED TO THE SETTLEMENTS BECAUSE THEY WERE NOT IN A FINANCIAL POSITION TO FIGHT THE FTC THE FTC SAID THE PHYSICIAN INVESTORS STEERED THEIR PATIENTS TO THE OXYGEN SERVICES THE DOCTORS OWNED BECAUSE THE DOCTORS EFFECTIVELY CONTROLLED SUCH A HIGH PERCENTAGE OF THE PATIENTS NEEDING THE SERVICE THERE WAS LITTLE INCENTIVE FOR OTHER OXYGEN COMPANIES TO ENTER THE MARKET AND COMPETE WITH THE PHYSICIANOWNED COMPANIES THE FTC IS CONSIDERING ACTION AGAINST OTHER PHYSICIAN JOINT VENTURES SAID MARY LOU STEPTOE ACTING DIRECTOR OF THE FTC'S COMPETITION BUREAU THE ACT OF A LARGE PERCENTAGE OF DOCTORS FORMING A JOINT VENTURE BY ITSELF IS NOT ILLEGAL SHE EXPLAINED IT BECOMES AN ANTITRUST PROBLEM WHEN THE JOINT VENTURE WORKS TO DENY FREEDOM OF CHOICE TO CONSUMERS IT'S THAT LACK OF CHOICE BEING STEERED INTO ONE SERVICE THAT'S THE PROBLEM SHE SAID THE COMMISSION WILL VOTE ON MAKING THE SETTLEMENTS FINAL AFTER ALLOWING 60 DAYS FOR COMMENTS FROM THE PUBLIC 9311040093 931104 OHIO HIGH COURT RULES UTILITIES CAN'T APPLY 395 MILLION TO RATES THE OHIO SUPREME COURT AFFIRMED A DECISION YESTERDAY THAT STOPPED TWO UTILITIES FROM ADDING SOME 395 MILLION TO THEIR RATE BASES THE COURT'S RULING UPHELD A DECISION BY THE PUBLIC UTILITIES COMMISSION OF OHIO TO FORCE CINCINNATI GAS & ELECTRIC CO AND AMERICAN ELECTRIC POWER CO'S COLUMBUS SOUTHERN POWER CO UNIT TO WRITE OFF ABOUT 230 MILLION AND 165 MILLION RESPECTIVELY THE TWO WANTED TO ADD THE AMOUNTS TO THEIR RATE BASES TO DEFRAY COSTS ASSOCIATED WITH CONSTRUCTION OF A PLANT THEY BUILT WITH DAYTON POWER & LIGHT CO BUT THE COURT REVERSED A COMMISSION DECISION THAT CALLED FOR PHASING IN A RATE INCREASE OVER THREE YEARS COLUMBUS SOUTHERN'S RATE INCREASE TOTALED 123 MILLION CINCINNATI GAS & ELECTRIC'S WAS 116 MILLION THE ISSUE WAS REMANDED TO THE COMMISSION TO SET RATES FOR THE FULL ANNUAL INCREASE 9311040092 931104 POLITICS & PEOPLE A DAY OF DEFEAT FOR DEMOCRATS BY ALBERT R HUNT ALL POLITICS TIP O'NEILL SAID IS LOCAL THE PROBLEM FOR PRESIDENT CLINTON IS THAT HE'S GETTING NEGATIVE MESSAGES FROM A LOT OF LOCAL PEOPLE INCLUDING THE NEW JERSEY AND VIRGINIA GUBERNATORIAL RACES THIS WEEK THERE NOW HAVE BEEN FOUR MAJOR STATEWIDE CONTESTS SINCE MR CLINTON WAS ELECTED IN EVERY ONE A REPUBLICAN WON A DEMOCRATICHELD SEAT FOR THE FIRST TIME IN MODERN MEMORY THERE ARE REPUBLICAN MAYORS IN THE NATION'S TWO LARGEST CITIES NEW YORK AND LOS ANGELES THE WHITE HOUSE WANTS TO STRESS THE PAROCHIALISM OF ELECTIONS ENDING IN ODD NUMBERED YEARS BUT ALREADY SOME DEMOCRATS ARE TALKING ABOUT PUTTING MORE DISTANCE BETWEEN THEMSELVES AND BILL CLINTON IRONICALLY THE FIRST EFFECTS COULD BE TWO WEEKS FROM TODAY WHEN THE HOUSE VOTES ON THE NORTH AMERICAN FREE TRADE AGREEMENT ALTHOUGH NAFTA WASN'T AN ISSUE IN ANY OF TUESDAY'S CONTESTS BUT IF THE HEADLINED RACES WERE BAD NEWS FOR THE PRESIDENT AND INCUMBENTS IT DIDN'T FOLLOW THAT IT WAS AN ALTOGETHER GOOD DAY FOR CONSERVATIVES VOTERS STILL ARE ANGRY AND WANT CHANGE BUT THEY'RE NOT BUYING BACK INTO THE CONSERVATIVE AGENDA SCHOOL CHOICE A STAPLE OF THE REPUBLICAN DOMESTIC MESSAGE WAS TROUNCED IN CALIFORNIA AND WASHINGTON STATE VOTERS REJECTED A ROLLBACK OF A BIG TAX INCREASE PRIVATELY SOME GOP STRATEGISTS ARE ALARMED AT A SEEMINGLY OBSCURE LIEUTENANT GOVERNOR'S RACE IN VIRGINIA WHERE AN EVANGELICAL CHRISTIAN WAS DECISIVELY DEFEATED WHILE HIS MORE MAINSTREAM RUNNING MATES WERE WINNING BIG THE FEAR IS A BACKLASH THAT THREATENS THE GOP ELECTORAL COALITION THE RACE HOWEVER THAT MOST OBSESSED THE WHITE HOUSE WAS NEW JERSEY THE POSSIBLE PARALLELS TO 1996 WERE OBVIOUS INCUMBENT DEMOCRAT JIM FLORIO HELD IN CONTEMPT BY VOTERS FOR A BIG TAX INCREASE AND WRITTEN OFF AS DEAD FIGHTS BACK AS A GUY WILLING TO MAKE TOUGH DECISIONS CLINTONITES WERE GOING TO CROW BIG OVER A FLORIO VICTORY NEW JERSEY IS THE BALLGAME FOR US IN THIS ELECTION A TOP PRESIDENTIAL ADVISER ACKNOWLEDGED ON ELECTION EVE MY SUPPLYSIDE COLLEAGUES INCLUDING THOSE 18 INCHES TO THE LEFT LITERALLY THAT IS WILL CLAIM A BIG VICTORY NOT ONLY WAS THIS A REFUTATION OF THE FLORIO TAX INCREASES BUT WINNER CHRISTINE WHITMAN CALLED FOR A WHOPPING 30 TAX CUT THEY'RE HALF RIGHT THE FLORIO TAX INCREASES DONE CLUMSILY AND ARROGANTLY STILL INFURIATED GARDEN STATE VOTERS BUT THE WHITMAN TAX CUT PLEDGE HAD LITTLE CREDIBILITY WHICH IS WHY SHE PLAYED IT DOWN IN THE CRITICAL FINAL DAYS JACK KEMP THE HIGH PRIEST OF SUPPLYSIDE POLITICIANS CAMPAIGNED IN NEW JERSEY LAST WEEK AND WAS KEENLY DISAPPOINTED AT THE LOW PRIORITY MS WHITMAN GAVE TO TAX CUTS OUT IN WASHINGTON STATE VOTERS NARROWLY APPROVED A MODEST TAX LIMITATION INITIATIVE BUT TROUNCED A SWEEPING TAX ROLLBACK SUGGESTING VOTERS NO LONGER ARE AUTOMATICALLY ATTRACTED TO THE SIMPLE LURE OF AN ANTITAX APPEAL GEORGE ALLEN'S VICTORY IN VIRGINIA IS A REAL PLUS FOR REPUBLICANS BREAKING A 12YEAR DEMOCRATIC HOLD ON THE RICHMOND GOVERNORSHIP MR ALLEN ALSO POSSESSES AN ASSET REMINISCENT OF THE MOST SUCCESSFUL REPUBLICAN POLITICIAN OF OUR AGE RONALD REAGAN HE IS CONSISTENTLY UNDERESTIMATED BY HIS ADVERSARIES KEEP AN EYE ON YOUNG MR ALLEN BUT THE LIEUTENANT GOVERNOR'S RACE IN VIRGINIA COULD COME BACK TO HAUNT THE GOP EXIT POLLS SHOWED THAT EVANGELICAL CHRISTIANS TURNED OUT IN RECORD NUMBERS TO GIVE THE GOP A BANNER DAY BUT MIKE FARRIS A RELIGIOUS RIGHT LEADER RUNNING FOR THE LIEUTENANT GOVERNOR WAS BEATEN THE MESSAGE EVANGELICAL CHRISTIANS ARE NOW A BEDROCK GOP CONSTITUENCY AND YET AS CANDIDATES THEY RISK ALIENATING THE MORE MODERATE CONSTITUENCIES THAT REPUBLICANS NEED TO WIN THIS IS ANALOGOUS TO THE PREDICAMENT THAT FACED DEMOCRATS AND BLACK ACTIVISTS A DECADE AGO DESPITE EFFORTS OF THE CHRISTIAN COALITION'S RALPH REED TO PUT A GOOD FACE ON THIS ELECTION BITTERNESS IS WELLING UP AMONG MEMBERS OF THE CHRISTIAN RIGHT WHO FEEL THEY PROVIDED THE ALLIMPORTANT FOOT SOLDIERS FOR NONEVANGELICAL CANDIDATES LIKE GEORGE ALLEN YET WHEN ONE OF THEIR OWN IS A CANDIDATE MAINSTREAM POLITICIANS LIKE VIRGINIA SEN JOHN WARNER TAKE A WALK WITHIN THE CHRISTIAN RIGHT NETWORK THIS IS ALREADY RESONATING LAST WEEK IN MINNESOTA SOME EVANGELICALS WERE BALKING AT HOLDING THEIR NOSE AND GOING ALONG WITH MODERATE GOP GOV ARNE CARLSON NEXT YEAR CITING THE WAY MIKE FARRIS WAS TREATED IN VIRGINIA BUT EVEN A CURSORY LOOK AT MR FARRIS'S RECORD SHOWS WHY HE SCARES SO MANY VOTERS HE HAS WRITTEN THAT MOTHERS SOMETIMES ARE UNNECESSARILY HYSTERICAL THAT WIVES SHOULD BE LOVING AND SUBMISSIVE THAT THE PUBLIC SCHOOL SYSTEM IS A GODLESS MONSTROSITY AND HAS EXPRESSED SKEPTICISM ABOUT DATING MUCH BEFORE MARRIAGE THE RELIGIOUS RIGHT IS AN ESSENTIAL PART OF THE GOP CONSTITUENCY NOW AND IS INCREASINGLY EFFECTIVE IN SCHOOL BOARD AND OTHER LOCAL ELECTIONS UNDERSTANDABLY IT WANTS A PIECE OF THE LARGER ACTION BUT WHEN EXPOSED TO THE SPOTLIGHT OF STATEWIDE RACES IT MAY MAKE A LOT OF PEOPLE NERVOUS THIS ISSUE COULD INFLAME THE REPUBLICAN COALITION FOR THE REST OF THE DECADE EQUALLY DISAPPOINTING FOR MANY REPUBLICANS WAS THE CALIFORNIA REFERENDUM ON SCHOOL CHOICE WHICH LOST BY MORE THAN A 2TO1 MARGIN THIS PROPOSITION WAS FRAMED POORLY AND THE OPPOSITION LED BY THE TEACHERS UNION VASTLY OUTSPENT PROPONENTS BUT THIS CONTEST DEMONSTRATED SOME OF THE PROBLEMS OF THIS ISSUE IT SUFFERED WHEN VOTERS BECAME AWARE THERE WAS A PRICE TAG IT WOULD COST MORE THAN A BILLION DOLLARS JUST TO GIVE THE EXISTING 10 OF CALIFORNIA SCHOOLCHILDREN WHO ARE IN PRIVATE SCHOOLS A 2600 VOUCHER MOREOVER TO MAKE SCHOOL CHOICE ECONOMICALLY FEASIBLE EXPERTS ESTIMATED THAT 20 MORE OF CALIFORNIA'S 57 MILLION SCHOOLKIDS WOULD HAVE TO OPT FOR PRIVATESCHOOL VOUCHERS YET THAT WOULD REQUIRE ABOUT 2000 NEW SCHOOLS WHAT SCHOOL CHOICE REALLY IS ALL ABOUT AS DENIS DOYLE EDUCATION EXPERT AT THE HUDSON INSTITUTE NOTES IS FUNDING RELIGIOUS SCHOOLS WHICH COMPRISE MORE THAN 80 OF PRIVATE SCHOOLS IN THE US LEGALLY THE COURTS PROBABLY ARE MORE AMENABLE TO THIS THAN IN THE RECENT PAST AND SUBSTANTIVELY IT'S CERTAINLY DESIRABLE TO HELP THE UNDERFUNDED INNERCITY PAROCHIAL SCHOOLS WHO ARE DOING SUCH GOOD WORK IN CONTRAST TO THE SORRY PERFORMANCE OF MANY URBAN PUBLIC SCHOOLS MOREOVER AS MR DOYLE NOTES THE US IS ABOUT THE ONLY ADVANCED DEMOCRACY THAT DOESN'T PROVIDE SOME PUBLIC FUNDING FOR RELIGIOUS SCHOOLS BUT WHAT ARE TAXPAYERS GOING TO THINK ABOUT FOOTING THE BILL FOR ISLAMIC FUNDAMENTALIST SCHOOLS OR BLACK MUSLIM INSTITUTIONS OR RELIGIOUSRIGHT HOMESCHOOLING PRACTITIONERS GIVEN THE SORRY STATE OF EDUCATION TODAY SCHOOL CHOICE IS AN IMPORTANT ISSUE THAT NEEDS TO BE SERIOUSLY DEBATED BUT AS CALIFORNIANS SHOWED TUESDAY IT'S NOT A POLITICAL FREE LUNCH 9311040091 931104 RETAILING OWNERS GIVE PETS EVERYTHING THEY NEED AS WELL AS STUFF THEY PROBABLY DON'T BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL IN THE GOOD OLD DAYS ALL ROVER NEEDED TO BE HAPPY WAS A RAWHIDE BONE NO MORE NOW AMERICANS THINK THEIR PETS NEED EVERYTHING FROM COLOGNES TO TINY HEATED SOFAS ONCE A HABIT OF THE ECCENTRIC RICH PAMPERING PETS HAS BECOME MORE COMMONPLACE A GENERATION AGO WHEN MORE PEOPLE LIVED ON FARMS OR IN SMALL TOWNS ANIMALS STAYED OUTDOORS BUT APARTMENT AND SUBURBAN LIVING HAS PUT PETS AND OWNERS TOGETHER IN CLOSE QUARTERS MAKING HUMANS MORE AWARE OF THEIR PETS' REAL AND IMAGINED NEEDS CHANGING DEMOGRAPHICS HAVE ALSO PLAYED A ROLE YOUNGER AMERICANS ARE HAVING CHILDREN LATER AND THE POPULATION OF EMPTY NESTERS IS GROWING I SPOIL MY DOG AND IT DOESN'T BOTHER ME SAYS MICHELLE TONKINSON A 24YEAROLD PHILADELPHIA NANNY WHOSE COCKER SPANIEL HAS A COLLECTION OF 20 BALLS AND EATS WHEATFREE TREATS BECAUSE OF ALLERGIES ANYTHING SHE NEEDS SHE GETS SHE'S LIKE OUR LITTLE BABY THE ARRIVAL OF PET SUPERSTORES HAS ALSO GIVEN PETSUPPLY SALES A BOOST THE STORES WHICH RANGE FROM 7500 TO 25000 SQUARE FEET OFFER WIDER SELECTIONS AND LOWER PRICES THAN TRADITIONAL PET STORES SO FAR THE SUPERSTORES GENERALLY STICK TO THE TRIED AND TRUE BECAUSE THEY HAVE TO BUY IN QUANTITY BUT PETCO A 200STORE CHAIN SELLS DYANNE LADUE'S PET POUCHES WHICH ARE CARRIERS SIMILAR TO THOSE FOR NEWBORNS THAT ALLOW OWNERS TO CARRY SMALL DOGS ON THEIR CHESTS AND SELL FOR ABOUT 30 IN 1991 548 MILLION HOUSEHOLDS OR 58 OF AMERICAN HOMES OWNED A PET THE PET INDUSTRY JOINT ADVISORY COUNCIL A TRADE GROUP SAYS SALES OF NONFOOD PET SUPPLIES RANGE FROM 3 BILLION TO 4 BILLION ANNUALLY AND ARE GROWING DOG PRODUCTS LEAD THE MARKET THOUGH CATS ARE THE MOST POPULAR PETS IN THE COUNTRY SAYS PET PRODUCT NEWS AN INDUSTRY MAGAZINE AFICIONADOS OF EXOTIC BIRDS ARE LIKELY TO SPEND MORE MONEY ON THEIR BIRDS OFTEN THOUSANDS OF DOLLARS THAN ON PARTICULAR TOYS AND ACCESSORIES BUT THE ANNUAL BILL FOR TOYS CAN ADD UP BIRDS ARE SMART EVEN SMARTER THAN CATS AND THEY GET BORED REAL FAST SAYS JOHN CHADWELL A PET PRODUCT NEWS EDITOR THE REALLY SERIOUS BIRD OWNER WILL ALWAYS GET A NEW TOY TO AMUSE THEM EXCESS FOR THE FEATHERED AND FURRY ISN'T NEW BUT RECENT YEARS HAVE BROUGHT A CASCADE OF ITEMS SWEATERS AND BEDS USED TO BE UGLY PEOPLE FIGURED WHO CARES IT'S FOR AN ANIMAL' SAYS JACKIE SPERANDIO COOWNER OF SPORTING DOGS SPECIALTIES INC A PETSUPPLY CATALOG MANUFACTURERS NOW REALIZE THEY'RE NOT SELLING TO ANIMALS BUT TO PEOPLE INNOVATION IN PET DOODADS IS DRIVEN BY ENTREPRENEURS MANY OF THEM PET OWNERS WHO HAVE A GOOD IDEA AND LITTLE CAPITAL THE INDUSTRIES USUALLY STAY COTTAGESIZED AND MANY FAIL BUT SOME PRODUCTS MAKE IT BIG INCLUDING THE VERMONT CHEWMAN A FLEECE DOG TOY SHAPED LIKE A GINGERBREAD MAN NOW MARKETED BY CARTERWALLACE OR THE LUCKY YUPPY PUPPY PET GUMBALL MACHINE WHICH DISPENSES TREATS AND WILL BE SOLD IN WALMART AND SHOPCO STORES WHIMSY RULES THE MARKET BECAUSE ENTREPRENEURS BELIEVE THAT WHAT PEOPLE WANT FOR THEMSELVES THEY WILL WANT FOR THEIR PETS GAIL ZELLER NOTICED HER AFGHAN HOUNDS SQUINTED WHEN THEY JOGGED WITH HER SO SHE STITCHED SUN VISORS FOR THEM POSH PUPS OF VENICE BEACH CALIF HAS SINCE MUSHROOMED INTO A BOUTIQUE OFFERING BIKER JACKETS AND EVEN WEDDING AND BARK MITZVAH ENSEMBLES FOUR PAWS INC MAKES A CANINE COLOGNE THAT IS MODELED AFTER CHRISTIAN DIOR'S POISON PERFUME HWE INC A MAKER OF MASSAGE INSTRUMENTS INTRODUCED DOGGY VIBE A HANDHELD DOG MASSAGER THAT SELLS FOR 30 LAST MONTH A DOG IS SENSITIVE HE'S FEELING SAYS MARK WOLLMAN VICE PRESIDENT OF MARKETING HE GETS ACHES AND PAINS HE JUST CAN'T TELL US ABOUT IT SOME PET OWNERS BECOME ENTREPRENEURS AFTER THEY COME UP WITH A GOOD IDEA TO SOLVE A PROBLEM BRADLEY VORNHOLT FELT SORRY FOR THE FAMILY DOG WHO SLEPT IN THE GARAGE SO HE DEVELOPED THE HEATED PET LOUNGE WHICH LOOKS LIKE A CATSIZED SOFA AND RANGES IN PRICE FROM 50 TO 110 GAIL MARTZ A FLIGHT ATTENDANT WANTED A BAG IN WHICH TO CARRY HER LHASA APSO SHERPA SHE CAME UP WITH THE SHERPA BAG A STURDY NYLON SHOULDER TOTE WHICH SHE IS SELLING AT THE RATE OF 500 A MONTH FOR 60 TO 80 EACH KATHY DUCK SEARCHED FRUITLESSLY FOR CASKETS LAST YEAR AFTER TWO OF HER DOGS DIED BUILDING ON HER EXPERTISE WITH PLASTIC AS PRESIDENT OF POLY PORTABLES INC A MAKER OF PORTABLE TOILETS MS DUCK SPUN OFF A NEW COMPANY THAT PRODUCES POLYETHYLENE PET CASKETS SINCE INTRODUCING THE PET CASKETTE IN JULY MS DUCK AND HER PARTNER HAVE SOLD ABOUT 400 UNITS RANGING IN PRICE FROM 35 TO 75 IN THE PROCESS MS DUCK HAS BEEN STARTLED BY PEOPLE'S COMMITMENT TO THEIR PETS EVEN AFTER THEY'RE DEAD SOME CUSTOMERS ARE THRILLED THAT THE AIRTIGHT CASKETS ALLOW THEM TO DISINTER THE DEARLY DEPARTED AND TAKE HIM OR HER TO A NEW BACKYARD SHOULD THEY MOVE OTHERS HAVE ASKED FOR RUSH DELIVERY BECAUSE THEY HAVE HAD TO MAKE ROOM IN THE REFRIGERATOR UNTIL A PROPER CASKET COULD BE FOUND TONY CATALOGS HAVE BECOME A BOON TO UPSTART PET SUPPLIERS SHARPER IMAGE AND BROOKSTONE WILL FEATURE DOGGY VIBE THIS WINTER AND HAMMACHER SCHLEMMER SAYS THE SHERPA BAG IS SELLING VERY WELL I LOOK FOR THE ULTIMATE IN PAMPERING SAYS MARY KAYE KEYES A BUYER FOR HAMMACHER SCHLEMMER OUR CUSTOMERS TEND TO TREAT PETS LIKE PEOPLE EXPENSIVE ITEMS FREQUENTLY GET SNAPPED UP AS QUICKLY AS CHEAPER PIECES BECAUSE PET OWNERS' WILLINGNESS TO SPEND USUALLY HAS LITTLE TO DO WITH THEIR SALARIES PEOPLE WHO SHOULDN'T BE ABLE TO AFFORD FOOD FOR THEIR KIDS ARE BUYING 600 CAT TREES WHICH ARE ELABORATE JUNGLE GYMS FOR CATS SAYS RANNY VERNON COOWNER OF CATHOUSE ORIGINALS INC THE MARKET IS MUCH DEEPER THAN WE HAD THOUGHT POSH GIFTS FOR PETS MAKE OWNERS HAPPY BUT SOME WONDER WHETHER ANIMALS WANT DESIGNER COLLARS AND MASSAGE MACHINES IT'S VERY TOUCHING BUT IT DOESN'T WORK SAYS THE AUTHOR OF THE HIDDEN LIFE OF DOGS ELIZABETH MARSHALL THOMAS A WORKING SHEEPDOG WITH PEOPLE WHO CARE FOR IT WILL BE HAPPIER THAN A DOG IN A FUR COAT 9311040090 931104 CORPORATE FOCUS CAESARS MAPS OUT STRATEGY TO DEFEND GAMBLING EMPIRE PLANS INCLUDE 250 MILLION FACELIFT IN LAS VEGAS EXPANSION INTO NEW AREAS BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES IN THE GAMBLING WORLD AS IN THE ANCIENT WORLD THE CAESARS NAME CONJURES UP IMAGES OF UNMATCHED OPULENCE WEALTH AND PALATIAL SPLENDOR BUT CAESARS WORLD INC FOR ALL ITS REPUTATION AS A SOLID MONEYMAKER HAS SEEMED ALMOST PEDESTRIAN AT A TIME WHEN GAMBLING HAS BECOME HOT WITH FORMIDABLE NEW COMPETITORS SETTING UP SHOP AT EVERY CROSSROADS CAESARS CHAIRMAN HENRY GLUCK IS MAPPING OUT A BATTLE PLAN TO DEFEND HIS EMPIRE CAESARS IS UNVEILING PLANS FOR A 250 MILLION FACELIFT AND EXPANSION OF ITS LAS VEGAS CASH COW CAESARS PALACE WITH NEW ATTRACTIONS MORE SHOPS AND OF COURSE MORE CASINO SPACE AND DESPITE SOME RECENT DISAPPOINTMENTS IN BIDS FOR NEW GAMBLING SITES MR GLUCK SAYS CAESARS HOPES TO CONQUER NEW TERRITORIES IN THE US AND ABROAD IN THE NEAR FUTURE CAESARS WON'T RUSH INTO EVERY HAMLET THAT LEGALIZES GAMBLING BUT WILL SCOUT MAJOR MARKETS THAT CAN LURE DESTINATION TRAVELERS HE SAYS WE'LL ONLY CONSIDER MARKETS WHERE THERE'S CRITICAL MASS HE ADDS OUR STRENGTH IS OUR NAME AND OUR FRANCHISE AND WE INTEND TO PLAY TO THAT UP TO NOW CAESARS HAS SHRUGGED OFF SKEPTICS TO MAINTAIN ITS STATUS AS A HIGHROLLERS' HEAVEN EVEN WHILE ADDING MORE SLOT MACHINES AND OTHER MASSMARKET DRAWS THE PALACE REMAINS ONE OF THE WORLD'S BESTKNOWN CASINOS ESPECIALLY AS A BOXING VENUE CAESARS ATLANTIC CITY IS ONE OF THAT MARKET'S TOP PERFORMERS WHILE ITS LAKE TAHOE NEV CASINO AND POCONO RESORTS PRODUCE STEADY RESULTS THE COMPANY POSTED A HEALTHY 26 INCREASE IN EARNINGS TO 832 MILLION OR 340 A SHARE FOR THE FISCAL YEAR ENDED JULY 31 BUT CAESARS' STOCK HAS CONSISTENTLY TRADED AT A DISCOUNT TO ITS BIG COMPETITORS AT YESTERDAY'S CLOSE OF 43625 THE STOCK IS SCRAPING ALONG AT ABOUT 12 TO 13 TIMES WALL STREET'S CONSENSUS EARNINGS ESTIMATE OF ABOUT 368 FOR THE CURRENT FISCAL YEAR WHILE COMPETITORS SUCH AS CIRCUS CIRCUS ENTERPRISES INC PROMUS COS AND MIRAGE RESORTS INC COMMAND PRICEEARNINGS MULTIPLES RANGING FROM THE MID 20S TO THE STRATOSPHERIC LOW 60S MR GLUCK ARGUES THAT THE CULPRIT IS VOLATILE QUARTERLY EARNINGS THAT STEMS FROM CAESARS' HEAVY RELIANCE ON BACCARAT AND OTHER TABLE GAMES WHICH ATTRACT HIGH ROLLERS WHO PERIODICALLY GET LUCKY SUCH GAMES ACCOUNTED FOR 70 AND 44 RESPECTIVELY OF REVENUES LAST YEAR AT CAESARS PALACE AND CAESARS ATLANTIC CITY BUT SOME SAY OTHER FACTORS ARE AT WORK THE REASON FOR THE LOW MULTIPLE IS THAT INVESTORS HAVE LITTLE CONFIDENCE IN ITS ABILITY TO GROW BEYOND ITS BASE SAYS JAMES MURREN AN ANALYST WITH CJ LAWRENCE IN THE PAST INVESTORS FAVORED CASINO COMPANIES THAT RAN CONSISTENT MONEYMAKERS BUT AS THE HUGE RUNUP IN SMALL RIVERBOATGAMBLING STOCKS SHOWS THE MARKET TODAY WILL GRANT A HEFTY PREMIUM TO OPERATORS JUMPING INTO NEW GAMBLING JURISDICTIONS EVEN MOST CRITICS SAY CAESARS HAS THE TOOLS TO FORGE AHEAD GOOD MANAGEMENT AND MARKET POSITION AND A SOLID BALANCE SHEET IF THE COMPANY CAN CONVINCE INVESTORS THAT IT IS COMMITTED TO EXPANSION BY WINNING ONE OR MORE IMPORTANT NEW PROJECTS IN THE NEXT FEW QUARTERS THE STOCK COULD SHOOT UP MR MURREN SAYS IT'S MAKE IT OR BREAK IT TIME FOR CAESARS THE ANALYST ADDS IF IT GETS ONE OR MORE OF THESE PROJECTS IT WILL BE ON A ROLL IF IT DOESN'T THE COMPANY WILL HAVE A REAL CREDIBILITY PROBLEM CAESARS HAS COME UP DRY BEFORE IT TEAMED WITH CIRCUS CIRCUS AND HILTON HOTELS CORP TO PROPOSE A BOLD 2 BILLION GAMBLING COMPLEX FOR CHICAGO BUT THE PROJECT IS A POLITICAL HOT POTATO AND IS LIKELY TO BE SCALED BACK AND FEATURE RIVERBOAT CASINOS RATHER THAN LANDBASED GAMBLING PERHAPS THE BIGGEST DISAPPOINTMENT HAS BEEN THE LANDBASED CASINO SLATED FOR NEW ORLEANS WHICH CAESARS HAD AGREED TO MANAGE FOR DEVELOPER CHRIS HEMMETER BUT IN A FLURRY OF LASTMINUTE POLITICKING CAESARS WAS PUSHED ASIDE AND PROMUS AND ITS PARTNERS SNATCHED THE PRIZE SEPARATELY A MANAGEMENT AGREEMENT AND PURCHASE OPTION THAT CAESARS HAD SIGNED FOR A PARADISE ISLAND CASINORESORT IN THE BAHAMAS ALSO FELL THROUGH CAESARS DOES HAVE PLANS FOR JOINT RIVERBOAT AND INDIAN CASINO DEVELOPMENTS AND IS BIDDING ON PROJECTS IN WINDSOR ONTARIO INDIANA AND MISSOURI BUT ITS LARGEST CAPITAL INVESTMENT AT THE MOMENT IS THE EXPANSION IN LAS VEGAS WHERE CAESARS' STRATEGY HAS PROVED A WINNER SO FAR MR GLUCK REMINDS SKEPTICS THAT WHEN CAESARS ANNOUNCED PLANS TO BUILD A FANCY SHOPPING COMPLEX NEXT TO THE CASINO WALL STREET GRIPED ABOUT THE IDEA OF A SHOPPING CENTER AS A TOURIST DRAW EVEN WITH HIGHTECH ANIMATED CHARACTERS AND POSH DESIGNER SHOPS LIKE ESCADA AND VERSACE EVEN MY ARCHITECT TOLD ME THAT THE FORUM WOULD END UP BEING CALLED HENRY GLUCK'S TOMB' MR GLUCK SAYS HE CAN LAUGH ABOUT IT NOW THE FORUM SHOPS HAVE BEEN SUCH A HIT THAT RETAILERS HAVE LINED UP TO SIGN FOR SPACE IN A NEW WING A KEY ELEMENT OF THE EXPANSION DEVELOPERS MELVIN SIMON & ASSOC AND THE GORDON CO WHO WILL FOOT THE ESTIMATED 65 MILLION BILL FOR THE ADDITION EXPECT TO SIGN SUCH HEAVYWEIGHTS AS CHANEL AND FAO SCHWARTZ IT ALSO WILL FEATURE A WHIZBANG SHOW OF HIGHTECH ENTERTAINMENT CAESARS' BROADER REMODELING WILL ADD ENTERTAINMENT ATTRACTIONS AND GLITTERY RESTAURANTS PLUS 30000 TO 50000 SQUARE FEET OF NEW CASINO SPACE AND A NEW FACADE THAT WILL GIVE THE PALACE THE AIR OF A GARGANTUAN ROMAN VILLA FOR THE BEST PLAYERS CAESARS IS BUILDING TWO 10000SQUAREFOOT SUITES AT 6 MILLION APIECE AND THERE WILL BE A NEW PLANET HOLLYWOOD RESTAURANT WHOSE BACKERS INCLUDE ACTORS DEMI MOORE ARNOLD SCHWARZENEGGER AND SYLVESTER STALLONE PERHAPS THE BIGGEST DEPARTURE FROM TRADITION WILL BE CAESARS MAGICAL EMPIRE A NEW ENTERTAIMENT AREA WHERE GUESTS WILL DINE AND BE ENTERTAINED BY MAGIC SHOWS ILLUSIONS AND OTHER LURES THE 26 MILLION ATTRACTION WILL OFFER AS MANY AS 3200 VISITORS A DAY A 2 1/2HOUR DIVERSION WHILE COMPETITORS BUILD ADDITIONAL CASINOS ON THE VEGAS STRIP MR GLUCK SAYS THAT DOUBLING DOWN AT CAESARS PALACE WILL PLAY OFF THE COMPANY'S NAME RECOGNITION AND LOCATION WE'RE ON THE 50YARD LINE HERE HE SAYS SOME ON WALL STREET ARE WILLING TO GIVE CAESARS' STRATEGY THE BENEFIT OF THE DOUBT JOHN ROHS OF WERTHEIM SCHRODER NOTES THAT THE FORUM HAS BEEN A BIG SUCCESS DESPITE INITIAL SKEPTICISM HE SAYS THE COMPANY'S WILLINGNESS TO SPEND HUNDREDS OF MILLIONS ON THE CHICAGO COMPLEX SHOWS IT WILL SPRING FOR THE RIGHT PROJECT AT THE VERY LEAST OTHERS SAY CAESARS' STOCK IS A BARGAIN AT THESE PRICES YOU'RE BUYING THE QUALITY NAME AND A CONSISTENT EARNINGS STREAM SAYS DEAN WITTER'S WILLARD BROWN BUT HE BELIEVES CAESARS DOESN'T HAVE THE EARMARKS OF A HIGHGROWTH GAMBLING ISSUE STAY TUNED MR GLUCK RESPONDS THE WORST THING YOU CAN DO IS LET YOUR COMPETITORS DEFINE YOUR STRATEGY IN THE LONG TERM WE'LL SEE WHO'S RIGHT 9311040089 931104 REVIEW & OUTLOOK EDITORIAL CRIMINAL CONTROL BEATS GUN CONTROL IF THERE'S ONE BUMPER STICKER THAT EMERGED FROM TUESDAY'S ELECTION THIS IS IT CRIMINAL CONTROL CRIMINAL CONTROL TRUMPS GUN CONTROL WHEN VOTERS CAN CHOOSE BETWEEN TWO CANDIDATES CLEARLY ASSOCIATED WITH THOSE ALTERNATIVES THAT IS WHAT HAPPENED IN THE VIRGINIA GUBERNATORIAL RACE BETWEEN GEORGE ALLEN AND MARY SUE TERRY CRIMINAL CONTROL IS WHAT SWEPT WASHINGTON STATE'S REMARKABLE THREE STRIKES AND YOU'RE OUT INITIATIVE TO VICTORY TUESDAY THE CRIMINALCONTROL ISSUE IS A REALITY THAT IS GOING TO START SINKING IN AMONG THE PEOPLE WHO ACTUALLY HAVE TO RUN FOR OFFICE LIKE JIM FLORIO OR MS TERRY SPECIFICALLY WE ARE LIKELY NOW TO SEE THE SPREAD OF MEASURES SUCH AS THREE STRIKES AND YOU'RE OUT WHICH PASSED TUESDAY BY A WHOPPING MARGIN OF 76 TO 24 THIS WAS IN A LIBERAL STATE THAT BILL CLINTON CARRIED EASILY THE MEASURE PROVIDES THAT PERSONS CONVICTED OF THREE MAJOR FELONIES GO TO PRISON FOREVER NO PAROLE A RESULT LIKE THAT DESERVES A LOT OF SERIOUS THINKING BY THE POLICYMAKING COMMUNITY WHAT IT TELLS US IS THAT A LOT OF LIBERAL VOTERS ARE PARTING WAYS WITH THEIR BETTERS IN THE INTELLECTUAL AND PUNDIT COMMUNITY WHAT THEY'RE SAYING IS THE CARING CLASSES THAT RUN OUR LEGAL AND SOCIAL SERVICE PROFESSIONS CAN SPIN WHATEVER THEORIES THEY WANT AROUND THESE THUGS OVER THE BROKEN BODIES OF TWO MAJOR CRIMES BUT AFTER THE THIRD ENOUGH IS ENOUGH YOU'RE GONE STILL WANT A PUBLIC SPENDING INCREASE OF SOME SORT YOU'VE GOT IT FOR MORE PRISONS TUESDAY A 1 BILLION TEXAS BOND ISSUE FOR MORE PRISONS AND PERHAPS LOGICALLY MORE MENTAL HEALTH FACILITIES PASSED 62 TO 38 SO WHAT'S THE PROBLEM WITH GUN CONTROL AS A VOTING PROPOSITION PARTLY WE SUSPECT THE TRUTH IS THAT SOME OF THE NRA'S PHILOSOPHICAL ARGUMENTS ABOUT SELFDEFENSE STILL RESONATE WITH MANY PEOPLE AN NRA COMMERCIAL IN WASHINGTON FEATURED A WOMAN RAPED AT KNIFEPOINT BY A MULTIPLE FELON JUST OUT ON PAROLE THE LARGER PROBLEM THOUGH IS THAT LIBERALS ARE ASKING GUN CONTROL TO CARRY MORE WEIGHT THAN IT CAN BEAR BELIEVING THAT GET TOUGH VIOLATES DEEPLY HELD LIBERAL PRINCIPLES THEY WON'T PUSH MUCH BEYOND GUNCONTROL ALONE OTHER THAN MAYBE CALLS FOR MORE DRUG TREATMENT CENTERS JIM FLORIO GOT TO CHRISTIE WHITMAN'S RIGHT ON ASSAULT WEAPONS THEN STOPPED HOW CAN IT SURPRISE THEM THAT LESS IDEOLOGICALLY CONSTRAINED VOTERS WON'T BUY INTO THIS STUNTED SOLUTION NEW YORK CITY NEW JERSEY AND THE DISTRICT OF COLUMBIA ALL HAVE STRICT GUNCONTROL LAWS BUT WE ARE LIVING IN AN AGE OF RECORD URBAN MURDER RATES THE DISTRICT OF COLUMBIA'S MAYOR CALLING FOR THE NATIONAL GUARD SLAUGHTERED NEW YORK CITY CAB DRIVERS THE MIAMI TOURIST CRIME WAVE THE DENNY VERDICT AND JESSE JACKSON ISSUING CALLS FOR AN END TO BLACKONBLACK VIOLENCE AGAINST FOURYEAROLD INNOCENTS IN VIRGINIA AN EXIT POLL ASKED VOTERS IF THEY FAVORED ELIMINATING PAROLE FOR PEOPLE CONVICTED OF CRIMES LIKE RAPE OR MURDER SOME 65 SAID YES THAT WAS GEORGE ALLEN'S CAMPAIGN POSITION MARY SUE TERRY WAS PROMOTING A FIVEDAY WAITING PERIOD ON GUN PURCHASES IF INDEED CRIME IS ONE OF THE DECIDING ELECTORAL ISSUES OF OUR ERA THE ADHERENTS OF GUN CONTROL WON'T BE DECIDING MUCH OF ANYTHING UNTIL THEY FIGURE OUT A WAY TO ALSO TALK IN PUBLIC CREDIBLY ABOUT CONTROLLING THE CRIMINALS HOW ABOUT THIS ANY JUVENILE ARRESTED FOR COMMITTING A CRIME WITH A GUN GETS TRIED AS AN ADULT TWO FINAL POLITICAL THOUGHTS SEATTLE'S MAYOR NORM RICE WHO IS BLACK AND WHO WON REELECTION TUESDAY SUPPORTED THE THREE STRIKES INITIATIVE AND 57 OF THE PEOPLE WHO SIGNED THE PETITION TO GET IT ON THE BALLOT WERE WOMEN 9311040088 931104 BUSINESS BRIEF HAWAIIAN AIR PARENT CITING COSTCUTTING HAD PROFIT IN QUARTER HONOLULU HAL INC THE LONGBELEAGUERED PARENT OF HAWAIIAN AIRLINES THAT IS OPERATING UNDER BANKRUPTCY REORGANIZATION SAID COSTCUTTING EFFORTS CONTRIBUTED TO EARNINGS OF 111 MILLION IN THE THIRD QUARTER THAT COMPARES WITH NET INCOME OF 253 MILLION IN THE YEAREARLIER QUARTER THE COMPANY SAID IT HAD NOT YET TABULATED PERSHARE COMPARISONS PENDING FILING OF THE RESULTS WITH THE SECURITIES AND EXCHANGE COMMISSION LATER THIS MONTH THE MOST RECENT PERIOD INCLUDES A ONETIME GAIN OF 109 MILLION ON ADJUSTMENTS RELATED TO CERTAIN OF THE COMPANY'S EMPLOYEE PENSION PLANS THE YEAREARLIER PROFIT RESULTED FROM A ONETIME GAIN OF 417 MILLION ON SALE OF A MONEYLOSING ROUTE BETWEEN HONOLULU AND FUKUOKA JAPAN TO NORTHWEST AIRLINES EXCLUDING THAT GAIN HAL REPORTED AN OPERATING LOSS OF 171 MILLION IN THE 1992 THIRD QUARTER COMPARED WITH AN OPERATING PROFIT OF 1 MILLION IN THIS YEAR'S QUARTER AS A RESULT OF THE ROUTE SALE THE COMPANY SAID THIRDQUARTER REVENUE SLIPPED 22 TO 844 MILLION FROM 1084 MILLION WITHOUT THE ROUTE AND AFTER SHARP CUTS IN LABOR COSTS AND FUEL EXPENSE THE COMPANY SAID OPERATING COSTS FELL 34 IN THE QUARTER FROM A YEAR EARLIER FOR THE NINE MONTHS HAL HAD A LOSS OF 186 MILLION ON REVENUE OF 2226 MILLION COMPARED WITH A YEAREARLIER LOSS OF 143 MILLION ON REVENUE OF 3231 MILLION THE COMPANY FILED IN SEPTEMBER FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION A SPOKESMAN SAID HAL EXPECTS TO COMPLETE ITS REORGANIZATION IN A FEW MONTHS IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING HAL ROSE 125 CENTS TO 175 9311040087 931104 ALLTEL TO BUY AT&T GEAR LITTLE ROCK ARK ALLTEL CORP SAID IT HAS AGREED TO PURCHASE ABOUT 100 MILLION IN SWITCHES TRANSMISSION SYSTEMS AND FIBER OPTICS FROM AMERICAN TELEPHONE & TELEGRAPH CO THE EQUIPMENT WILL BE USED IN A FIVEYEAR 350 MILLION PROJECT TO IMPROVE ALLTEL'S TELECOMMUNICATIONS LINES IN GEORGIA WHICH IT RECENTLY PURCHASED FROM GTE CORP 9311040086 931104 BAUSCH & LOMB ACQUIRES REVO ROCHESTER NY BAUSCH & LOMB INC SAID IT WOULD ACQUIRE SUNGLASSESMAKER REVO INC A DIVISION OF COOPER DEVELOPMENT CO MOUNTAIN VIEW CALIF FOR 225 MILLION THE DEAL IS EXPECTED TO CLOSE IN JANUARY COOPER SAID REVO ALSO IN MOUNTAIN VIEW WILL REMAIN IN CALIFORNIA AND WILL BE MANAGED SEPARATELY FROM BAUSCH & LOMB'S RAYBAN SUNGLASSES BUSINESS AND ITS PRODUCTS WILL BE MARKETED UNDER THE REVO NAME 9311040085 931104 INTERNATIONAL EUROPE MOVES TO CURB INSIDER TRADING BLATANT VIOLATIONS BRING ABOUT A CHANGE IN ATTITUDES BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON FOR MOST SHARES APRIL 23 WAS A LACKLUSTER DAY ON THE LONDON STOCK EXCHANGE NOT FOR SAVAGE GROUP PLC THE HARDWARE MAKER'S STOCK LEAPT 34 TO 67 PENCE FROM 50 PENCE DURING THE MORNING WITHOUT ANY NEWS BEING DISCLOSED THEN TOWARD THE END OF THE DAY SAVAGE ANNOUNCED IT HAD RECEIVED AN INQUIRY ABOUT A POSSIBLE TAKEOVER WITHIN DAYS MCKECHNIE PLC SAID IT WOULD PAY 472 MILLION 695 MILLION OR ABOUT 75 PENCE A SHARE FOR SAVAGE IT'S EASY TO ASSUME THAT IT WAS INSIDER TRADING SAYS MICHAEL OST CHIEF EXECUTIVE OFFICER FOR MCKECHNIE WHICH IS COOPERATING WITH AUTHORITIES EXAMINING THE TRADING CASE BUT AFTER MONTHS OF INVESTIGATION THE SOURCE OF THE PRESUMED LEAK HASN'T YET BEEN DETERMINED JUDGING BY EXPERIENCE THE CULPRITS MAY NEVER BE FOUND AND SO IT GOES IN EUROPE WHILE MOST EUROPEAN COUNTRIES IN RECENT YEARS HAVE ADOPTED LAWS MAKING INSIDER TRADING ILLEGAL ENFORCEMENT IS SPOTTY AT BEST AND NONEXISTENT IN SOME CASES BUT INVESTMENT FUNDS ARE TIRED OF EVERYONE SHRUGGING AT THE PROBLEM A COMMON BELIEF THAT CERTAIN INVESTORS HAVE ACCESS TO CONFIDENTIAL INFORMATION AND PROFIT FROM IT IS A MAJOR REASON WHY COMPARATIVELY FEW EUROPEANS OWN STOCKS SOME PROFESSIONALS CONTEND IN CONTRAST TO THE US WHERE SOME 35 OF ADULTS OWN SHARES DIRECTLY ONLY 7 IN GRMANY 14 IN FRANCE AND 20 IN BRITAIN OWN STOCK WE NEED TO FIGHT INSIDER DEALING WITH TEETH AND VIGOR ARGUES PAUL MYNERS CHAIRMAN OF GARTMORE INVESTMENT MANAGEMENT LTD IN LONDON AS FUND MANAGERS WE'RE PLACED IN A POSITION OF GREAT TRUST AND IT REFLECTS VERY POORLY ON THE INDUSTRY WHEN THERE ARE THESE BLATANT VIOLATIONS JOHN HICKLING A EUROPEAN FUND MANAGER FOR THE GIANT BOSTONBASED GROUP FIDELITY INVESTMENTS TREADS CAREFULLY ON THE CONTINENT KEEPING CAVEAT EMPTOR IN MIND AT ALL TIMES IT'S CLEAR OUTSIDERS LIKE OURSELVES DON'T HAVE ACCESS TO EQUAL INFORMATION MR HICKLING SAYS IF THERE WERE CREDIBLE REGULATORY INSTITUTIONS INSTITUTIONAL INVESTORS' CONFIDENCE IN THE MARKETS WOULD INCREASE SIGNIFICANTLY HE ADDS SOME COUNTRIES HEAR THE COMPLAINTS AND ARE ACTING THERE ARE HOPES THAT GERMANY FOR INSTANCE IS FINALLY GETTING SERIOUS ON THE TOPIC CHANCELLOR HELMUT KOHL'S GOVERNMENT YESTERDAY APPROVED DRAFT LEGISLATION THAT WOULD MAKE INSIDER DEALING A CRIME IF ACCEPTED BY PARLIAMENT THE NEW PROPOSALS WOULD ALSO CREATE A GERMAN EQUIVALENT OF THE SECURITIES AND EXCHANGE COMMISSION AND BROADEN THE DISCLOSURE REQUIREMENTS FOR MAJOR SHAREHOLDERS PERSONS OR CORPORATIONS HOLDING STAKES IN A COMPANY WOULD HAVE TO DECLARE THEIR HOLDINGS WHEN THEY HIT 5 10 25 50 AND 75 CURRENTLY THEY MUST ONLY DISCLOSE THEIR STAKES WHEN THEY HIT 25 STILL FINAL PASSAGE ISN'T EXPECTED UNTIL MID1994 NEARLY TWO YEARS AFTER THE EUROPEAN COMMUNITY DEADLINE FOR ENACTING ANTIINSIDER DEALING LEGISLATION MEANWHILE LONDON'S INTERNATIONAL STOCK EXCHANGE PLANS TO PUBLISH DRAFT GUIDELINES TODAY ON HOW COMPANIES SHOULD DISSEMINATE INFORMATION BUT WHILE IT'S RELATIVELY EASY TO CREATE LAWS AND INSTITUTIONS IT'S ANOTHER THING TO ACTUALLY PROSECUTE OFFENDERS INDEED RIDDING EUROPE OF INSIDER DEALING WILL REQUIRE A RADICAL SHIFT IN THE MINDSET OF MARKET PARTICIPANTS SOME CONTEND THE PURITANICAL MORALITY IN THE ANGLOSAXON CULTURE SAYS INSIDER TRADING IS WRONG HERE THAT PARTICULAR KIND OF MORALITY DOESN'T EXIST CONCEDES ALBERTO ROLLA AN ANALYST WITH MILLA & CO SIM SPA IN MILAN PEOPLE WHO MAKE MONEY BECAUSE THEY'RE SLY ARE ADMIRED IN ITALY WE'VE GONE FROM 15 OR 20 YEARS AGO WHEN YOU ONLY TRADED ON THE BASIS OF INSIDER INFORMATION TO PERCEIVING IT AS A CRIME SAYS PETER SEABROOK A DIRECTOR AT FLEMING INVESTMENT MANAGEMENT LTD IN LONDON SOME COUNTRIES ARE STILL ABOUT A DECADE BEHIND OF THE 14 MAJOR WESTERN EUROPEAN COUNTRIES JUST BRITAIN AND FRANCE CAN CLAIM AN INSIDERTRADING CONVICTION AT ALL IN THE 13 YEARS THAT INSIDER TRADING HAS BEEN AN OFFENSE UK AUTHORITIES HAVE BROUGHT ONLY 30 CASES TO TRIAL AND WON JUST 17 CONVICTIONS A PERIOD IN WHICH THE US SEC HAS FILED WELL OVER 350 CASES MOST OF WHICH RESULTED IN PUNITIVE ACTION IN SOME COUNTRIES ENFORCEMENT RESPONSIBILITY IS SPREAD AMONG A NUMBER OF BODIES SO NONE HAS ENOUGH POWER TO BE EFFECTIVE GENERALLY IT IS A CRIMINAL AND NOT A CIVIL OFFENSE MEANING THAT THE BURDEN OF PROOF IS HIGHER MIKE FELTHAM HEAD OF THE LONDON STOCK EXCHANGE'S SURVEILLANCE GROUP DOUBTS INSIDER TRADING WILL BE EFFECTIVELY COMBATED UNTIL BRITAIN HAS A CENTRALIZED ENFORCEMENT AGENCY YOU NEED TO BE ABLE TO HIT PEOPLE WITH A BIG STICK AND WE DON'T HAVE THAT RIGHT NOW HE SAYS MOREOVER THERE IS NOTHING REMOTELY CLOSE TO A UNIFIED EC FINANCIAL MARKETS REGULATORY BODY TO COORDINATE CROSSBORDER INVESTIGATIONS THE LAW MAY BE GOOD BUT IT'S A BIT OF A PAPER TIGER NOTES ROBERT DE HAZE WINKELMAN A SPOKESMAN AT THE VERENIGING VAN EFFECTENBEZITTERS A DUTCH SHAREHOLDER RIGHTS ASSOCIATION HE SAYS INSIDER TRADERS OFTEN HIDE BEHIND PARTNERS ACROSS BORDERS PARTICULARLY IN LUXEMBOURG WHICH HAS TIGHT BANKING SECRECY TYPICALLY ONLY THE MOST FLAMBOYANT CASES EVER COME TO THE PUBLIC'S ATTENTION IN EUROPE IN GERMANY FRANZ STEINKUHLER A UNION OFFICIAL AND MEMBER OF DAIMLERBENZ AG'S SUPERVISORY BOARD RESIGNED BOTH POSTS LAST SUMMER AFTER HE PROFITED BUYING SHARES OF MERCEDES AUTOMOBIL HOLDING AG SHORTLY BEFORE DAIMLER ACQUIRED THE AFFILIATE IN FRANCE SEVEN BUSINESSMEN AND STOCK TRADERS WERE CONVICTED AND FINED BUT GIVEN SUSPENDED SENTENCES IN SEPTEMBER FOR INSIDER DEALING AND FRAUD IN CONNECTION WITH TRADES JUST BEFORE STATEOWNED ALUMINUM GIANT PECHINEY SA DISCLOSED IT WOULD TAKE OVER AMERICAN NATIONAL CAN CO SOME INVESTORS HAVE HAD ENOUGH IN BRITAIN MR MYNERS OF GARTMORE INVESTMENT MANAGEMENT WAS SO UPSET WITH TWO INCIDENTS INVOLVING TIPHOOK PLC'S STOCK LAST SUMMER THAT HE DUMPED GARTMORE'S 35 STAKE IN THE COMPANY IN BOTH INSTANCES INVESTORS SOLD TIPHOOK SHARES SHORT SELLING BORROWED SHARES IN ANTICIPATION OF A DECLINE IN THE STOCK'S PRICE THEN BUYING SHARES AT A LOWER PRICE AND MAKING A PROFIT ON THE DIFFERENCE THE FIRST TIME TIPHOOK SHARES PLUNGED 11 AHEAD OF A WARNING THAT PROFIT WOULD BE LOWER THAN EXPECTED THE SECOND TIME TIPHOOK'S STOCK PLUMMETED 20 BEFORE THE COMPANY SAID IT WOULD TAKE CHARGES RESULTING FROM AN ACCOUNTING CHANGE A TIPHOOK SPOKESMAN SAYS THE COMPANY HAS ASKED THE LONDON STOCK EXCHANGE TO INVESTIGATE AND SAID IT HAS HIRED NEW YORKBASED CORPORATE INVESTIGATORS KROLL ASSOCIATES TO SEARCH FOR LEAKS WITHIN THE COMPANY 9311040084 931104 LAW MARTIN REVSON SETTLES SEC CLAIMS OF INSIDER TRADING BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MARTIN E REVSON A BUSINESSMAN WHO ALLEGEDLY TOOK PART IN A HIGHSOCIETY INSIDERTRADING RING WILL PAY ALMOST 16 MILLION TO SETTLE A CIVIL SUIT BY THE SECURITIES AND EXCHANGE COMMISSION MR REVSON A FORMER CHAIRMAN OF DEL LABORATORIES INC FARMINGDALE NY AND BROTHER OF REVLON INC'S COFOUNDER CHARLES REVSON AGREED TO PAY MORE THAN 13 MILLION IN RESTITUTION FOR PROFITS DERIVED FROM TRADING KIDDE INC SECURITIES IN 1987 ON TOP OF THAT MR REVSON 83 YEARS OLD WILL PAY MORE THAN 343000 IN CIVIL PENALTIES AS PART OF THE SETTLEMENT MR REVSON NEITHER ADMITTED NOR DENIED ANY WRONGDOING MR REVSON ACKNOWLEDGES NO IMPROPRIETY SAID FREDERICK P HAFETZ A NEW YORK ATTORNEY FOR MR REVSON HE WANTED TO AVOID A VERY COSTLY AND STRESSFUL LEGAL BATTLE THE HEFTY SETTLEMENT IS THE SECOND IN THE SEC SUIT FILED LAST YEAR AGAINST SEVEN PROMINENT EAST COAST SOCIALITES THE SEC ALLEGED THAT MR REVSON GARNERED AT LEAST 17 MILLION IN PROFIT AFTER GETTING INSIDER TIPS FROM EDWARD R DOWNE JR A NEIGHBOR IN THE HAMPTONS A LONG ISLAND NY BEACH COMMUNITY MR DOWNE PLAYED POKER WITH MR REVSON AND ALSO WITH FRED SULLIVAN FORMER CHIEF EXECUTIVE OF KIDDE A SADDLE BROOK NJ CONSUMER GOODS COMPANY ACQUIRED BY HANSON PLC IN 1987 MR SULLIVAN WHO ALSO WAS NAMED IN THE SUIT SETTLED WITH THE SEC LAST YEAR BY AGREEING TO PAY 58000 IN PENALTIES THE SEC SUIT AGAINST MR DOWNE A FORMER BOARD MEMBER OF BEAR STEARNS COS AND THE HUSBAND OF AUTOMOBILE HEIRESS CHARLOTTE FORD IS ONGOING MR DOWNE'S ATTORNEY SAID IN COURT IN SEPTEMBER WHEN HIS CLIENT WAS SENTENCED IN A RELATED FEDERAL CRIMINAL CASE THAT A TENTATIVE SETTLEMENT HAD BEEN REACHED WITH THE SEC AT THAT TIME THE ATTORNEY THOMAS PUCCIO SAID MR DOWNE WOULD SELL PRACTICALLY ALL HIS POSSESSIONS AS PART OF THE SEC SETTLEMENT MR PUCCIO SAID SEC COMMISSIONERS STILL NEEDED TO APPROVE THE SETTLEMENT BUT THAT MR DOWNE WAS PREPARED TO SELL A PRIZED CONTEMPORARYART AND PHOTOGRAPHY COLLECTION HOMES IN IRELAND AND SOUTHAMPTON NY A FLORIDA CONDOMINIUM SECURITIES AND HIS INTEREST IN VARIOUS PARTNERSHIPS AND BUSINESS VENTURES TAKING THAT AGREEMENT INTO ACCOUNT THE FEDERAL JUDGE IN MANHATTAN ORDERED MR DOWNE TO SERVE THREE YEARS' PROBATION AND PERFORM 3000 HOURS OF COMMUNITY SERVICE MR DOWNE ONE OF ONLY TWO DEFENDANTS WHO FACED CRIMINAL AS WELL AS CIVIL CHARGES HAD PLEADED GUILTY TO TWO FELONY COUNTS MR PUCCIO COULDN'T BE REACHED FOR COMMENT YESTERDAY SEC REGIONAL DIRECTOR RICHARD WALKER SAID THE AGENCY HAD NOT SETTLED WITH MR DOWNE BUT WOULDN'T COMMENT ON WHY NO AGREEMENT HAD BEEN REACHED MR WALKER SAID THE SEC IS SEEKING LARGE AMOUNTS OF MONEY FROM MR DOWNE AND NEW YORK PUBLICRELATIONS EXECUTIVE STEVEN A GREENBERG WHOSE CASE IS IN THE PRETRIAL FACTFINDING STAGE ALSO PENDING ARE THE SEC'S SUITS AGAINST MR DOWNE'S FRIEND AND BUSINESS PARTNER DAVID SALAMONE LOS ANGELES REALESTATE INVESTOR THOMAS WARDE A NEIGHBOR OF MR DOWNE'S IN SUN VALLEY IDAHO AND MILTON WEINGER A FORMER OPPENHEIMER & CO BROKER MR WEINGER THE OTHER DEFENDANT IN THE CRIMINAL CASE WAS SENTENCED TO 10 MONTHS IN PRISON EARLIER THIS YEAR HE ADMITTED TO CONCEALING THAT MR DOWNE CONTROLLED A BROKERAGE ACCOUNT OPENED IN THE NAME OF MR DOWNE'S SON THE ACCOUNT ALLEGEDLY WAS USED IN THE INSIDER TRADING 9311040083 931104 INTERNATIONAL KING HUSSEIN ADROITLY CRIPPLES FOES AS JORDAN NEARS VOTE FOR PARLIAMENT BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL AMMAN JORDAN AS JORDAN PREPARES FOR PARLIAMENTARY ELECTIONS MONDAY ITS RULER KING HUSSEIN IS DEMONSTRATING ONCE AGAIN WHY HE IS THE MIDEAST'S LONGESTREIGNING LEADER A FEW MONTHS AGO THE 58YEAROLD MONARCH WHO HAS SAT ON THE HASHEMITE THRONE FOR 42 YEARS WAS FACING THE PROSPECT OF ISLAMIC EXTREMISTS DOMINATING PARLIAMENT AT A PIVOTAL JUNCTURE IN THE MIDEAST PEACE PROCESS SO HIS GOVERNMENT REWROTE THE ELECTION LAWS THE RESULT MUSLIM PARTIES NOW ARE EXPECTED TO LOSE CLOUT IN THE NEXT PARLIAMENT ALTHOUGH THEY'LL MAINTAIN A STRONG POLITICAL VOICE WITH WHICH TO BLOW OFF STEAM SPECIFICALLY IN THIS ELECTION EACH JORDANIAN WILL BE ALLOWED ONLY ONE VOTE RATHER THAN MULTIPLE VOTES AS WAS THE CASE IN JORDAN'S LAST ELECTION FOUR YEARS AGO IN THAT ELECTION VOTERS USED THEIR ADDITIONAL VOTES TO ELECT BLOCS OF CANDIDATES FROM THEIR DISTRICTS GIVING THE WELLFUNDED WELLORGANIZED MUSLIM BROTHERHOOD A BIG ADVANTAGE THE EXTREMIST BROTHERHOOD TOOK 22 OF 80 SEATS IN 1989 A PLURALITY THAT WITH PARTNERS GAVE IT EFFECTIVE CONTROL OF PARLIAMENT KING HUSSEIN RETAINS CONTROL OF DEFENSE AND FOREIGN POLICY BUT IS SUBJECT TO GRILLING BY PARLIAMENT THE KING IS EVIDENTLY FEELING PROUD OF JORDAN'S PROGRESS IN DEMOCRATIZATION FINELY TUNED AS IT IS WE ARE DETERMINED TO MAKE AN EXAMPLE OF SOMETHING THAT CAN WORK OF SOMETHING THAT THE WORLD CAN LOOK AT WHICH REVEALS THE TRUE POSSIBILITIES OF ISLAMIC SOCIETY HE SAID LAST WEEK IN AN INTERVIEW PUBLISHED HERE THOSE TRUE POSSIBILITIES APPARENTLY DON'T INCLUDE INSPIRATIONAL CAMPAIGNS FOR THE MOST PART THIS YEAR'S CAMPAIGN HAS BEEN A SLEEPER WITH LOCAL AND TRIBAL ISSUES DOMINATING WHAT MINIMAL PUBLIC DEBATE THERE HAS BEEN JORDANIANS SAY THAT HAS BEEN BY DESIGN WITH JUST ONE VOTE TO CAST UNDER THE NEW ELECTORAL SYSTEM TRADITIONBOUND JORDANIANS ARE LIKELY TO CAST THEIR LONE BALLOT FOR CANDIDATES AFFILIATED WITH THEIR CLAN THUS ENHANCING THE IMPORTANCE OF PERSONAL RIVALRIES OVER MORE HIGHMINDED CONCERNS SUCH AS MIDEAST PEACE JORDAN SIGNED AN AGENDA FOR PEACE WITH ISRAEL IN WASHINGTON ON SEPT 14 BUT THAT HASN'T STOPPED ISLAMIC EXTREMISTS FROM TRYING TO LIVEN THINGS UP DESPITE WARNINGS FROM THE KING NOT TO PREACH POLITICS IN THE MOSQUES SEVERAL RADICAL SHEIKS HAVE BEEN FULMINATING FROM THE PULPIT AGAINST ISRAEL THE PEACE PROCESS AND JORDAN'S LEFTOVER COMMUNISTS AND THANKS TO A COURT DECISION OVERTURNING A GOVERNMENT BAN ON PUBLIC RALLIES THE MUSLIM BROTHERHOOD'S ISLAMIC ACTION FRONT PARTY HAS TAKEN ITS CASE DIRECTLY TO THE FAITHFUL AT AN OUTDOOR RALLY IN THE CITY OF ZARQA ON TUESDAY A CHAIRTHROWING BRAWL ERUPTED AS ISLAMIC ACTION FRONT CANDIDATES INVEIGHED AGAINST THE DECADENT ELEMENTS IN THE COUNTRY WHO DRINK CRATES OF WHISKEY AND CAVORT WITH NAKED WOMEN WARNED AHMAD NOFAL A BROTHERHOOD CANDIDATE IF WE HAVE A CHOICE BETWEEN DEMOCRACY AND DICTATORSHIP WE CHOOSE DEMOCRACY BUT IF IT'S BETWEEN ISLAM AND DEMOCRACY WE CHOOSE ISLAM 9311040082 931104 ABREAST OF THE MARKET INDUSTRIALS TUMBLE 3577 AS A RISE IN INTEREST RATES WORRIES INVESTORS BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK CREEPING GAINS IN MARKET INTEREST RATES SPOOKED INVESTORS AND SENT STOCK PRICES TUMBLING ANOTHER DAY OF WEAKNESS IN THE BOND MARKET TRIGGERED THE SLIDE ANALYSTS SAID THE 30YEAR TREASURY LOST 5/8 POINT LIFTING ITS YIELD TO 610 AS RECENTLY AS LAST MONTH THE YIELD STOOD AT 579 INTERESTRATE SENSITIVE STOCKS SUFFERED THE MOST BANKING AND INSURANCE ISSUES TUMBLED INCLUDING CITICORP DOWN 1 1/8 TO 35 3/8 AND AMERICAN INTERNATIONAL GROUP OFF 2 3/8 TO 83 5/8 THE DOW JONES UTILITIES AVERAGE PLUNGED 619 OR 260 TO 23168 IT DROPPED 137 TUESDAY THE SHARP UTILITIES SLIDE EXACERBATED THE INTERESTRATE FEARS TRADERS SAID MANY ANALYSTS VIEW THE UTILITIES AVERAGE AS A LEADING INDICATOR FOR THE BOND MARKET DECLINERS SWAMPED ADVANCERS 1529 TO 570 ON THE BIG BOARD VOLUME JUMPED TO 340995680 SHARES FROM 304739410 TUESDAY IN THE HEAVIEST TRADING SINCE OCT 15 THE STANDARD & POOR'S 500STOCK INDEX DROPPED 542 OR 116 TO 46302 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 297 OR 114 TO 25650 AND THE DOW JONES EQUITY MARKET INDEX SHED 550 OR 124 TO 43784 THE NASDAQ COMPOSITE INDEX MEANWHILE SKIDDED 1271 OR 162 TO 77295 ITS BIGGEST DROP SINCE OCT 19 A SERIES OF STRONG ECONOMIC REPORTS OVER THE PAST SEVERAL WEEKS HAS RATTLED THE BOND MARKET THE ECONOMIC NEWS RAISED HOPES FOR STRONGER PROFITS AT COMPANIES WHOSE FORTUNES TURN WITH THE ECONOMY AND THAT POWERED THE DOW JONES INDUSTRIAL AVERAGE HIGHER RECENTLY BUT HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY SAID OPTIMISM IS GIVING WAY TO FEARS ABOUT INCREASING INFLATION HE SAID SOME INVESTORS HAVE BECOME CONCERNED THE FEDERAL RESERVE'S POLICYSETTING FEDERAL OPEN MARKET COMMITTEE MIGHT VOTE FOR A BIAS TOWARD CREDITTIGHTENING WHEN IT MEETS THIS MONTH ERIC MILLER MARKET STRATEGIST AT DONALDSON LUFKIN & JENRETTE SAID HE EXPECTS INTEREST RATES TO CONTINUE TO INCH HIGHER OVER THE NEAR TERM BUT HE DOESN'T EXPECT THEM TO REACH LEVELS THAT WOULD CAUSE A MAJOR SHAKEOUT IN THE STOCK MARKET I DON'T THINK THIS IS THE BEGINNING OF A 10 INTERMEDIATE MARKET CORRECTION HE SAID SEMICONDUCTOR STOCKS WERE AMONG THE WEAKEST YESTERDAY MICRON TECHNOLOGY SKIDDED 5 TO 40 3/4 AND TEXAS INSTRUMENTS LOST 5 1/2 TO 60 1/8 AFTER KIDDER PEABODY ANALYST JONATHAN JOSEPH MADE CAUTIOUS COMMENTS ABOUT COMPUTER MEMORY CHIP PRICES HE DOWNGRADED BOISE IDAHOBASED MICRON TO OUTPERFORM FROM STRONG BUY MEDICALRELATED STOCKS BUCKED THE DOWNWARD TREND BIG GAINERS INCLUDED ELI LILLY WHICH ROSE 1 1/8 TO 55 3/8 AND BRISTOLMYERS SQUIBB UP 7/8 TO 59 7/8 BOTH WERE UPGRADED TO MODERATE OUTPERFORMER FROM MARKET PERFORMER BY GOLDMAN SACHS ANALYST PREM LACHMAN THE GOLDMAN ANALYST SAID HE EXPECTS THESE TWO AND OTHER PHARMACEUTICALS COMPANIES TO IMPROVE CASH FLOWS BY DIVESTING NONCORE HOLDINGS THAT COULD CLEAR THE WAY FOR ACQUISITIONS OR TO BUY BACK THEIR OWN SHARES MERCK & CO WAS THE MOSTACTIVE BIG BOARD ISSUE JUMPING 1 1/8 TO 32 7/8 ON 77 MILLION SHARES OTHER ADVANCERS INCLUDED AMERICAN HOME PRODUCTS UP 3/4 TO 63 AND PFIZER UP 1 3/8 TO 63 5/8 ON THE NASDAQ STOCK MARKET US HEALTHCARE ADDED 2 3/8 TO 52 7/8 PACIFIC TELESIS SLIPPED 4 1/8 TO 55 AFTER GOLDMAN ANALYST ROBERT B MORRIS DOWNGRADED THE STOCK TO MARKET PERFORMER FROM TRADING BUY THE ANALYST SAID HE HAD RAISED THE STOCK TO BUY IN AUGUST IN ANTICIPATION OF APPROVAL BY CALIFORNIA REGULATORS TO SPIN OFF THE WIRELESS COMMUNICATIONS BUSINESS THAT APPROVAL CAME TUESDAY TRIGGERING A GAIN OF 4 7/8 IN THE SAN FRANCISCO COMPANY'S STOCK LIBERTY NATIONAL BANCORP JUMPED 1 3/8 TO 29 3/8 ON NASDAQ AFTER THE LOUISVILLE KY COMPANY AGREED TO BE ACQUIRED BY BANC ONE FOR ABOUT 842 MILLION OF THE COLUMBUS OHIO CONCERN'S SHARES BANC ONE LOST 7/8 TO 36 5/8 ON THE BIG BOARD OLSTEN DROPPED 1 1/2 TO 28 1/2 ON THE AMERICAN STOCK EXCHANGE THE WESTBURY NY TEMPORARY PERSONNEL SERVICES PROVIDER SAID IT HAD A THIRDQUARTER LOSS OF 150 A SHARE INCLUDING 180 A SHARE IN EXPENSES TIED TO ITS JULY MERGER WITH LIFETIME CORP A YEAR AGO OLSTEN EARNED 26 CENTS ADJUSTED FOR A STOCK SPLIT READER'S DIGEST CLIMBED 1 7/8 TO 42 3/4 EVEN THOUGH IT SAID EARNINGS FROM OPERATIONS SLIPPED TO 54 CENTS A SHARE FROM 56 CENTS A YEAR AGO THE PLEASANTVILLE NY COMPANY SAID IT WOULD REDUCE EXPENSES BY CUTTING 200 JOBS SNAPPLE BEVERAGE ADDED 1 5/8 TO 24 5/8 ON NASDAQ THE VALLEY STREAM NY COMPANY REPORTED THIRDQUARTER NET INCOME OF 22 CENTS A SHARE COMPARED WITH PRO FORMA EARNINGS OF SIX CENTS LAST YEAR THE LATEST QUARTER'S RESULTS TOPPED ANALYSTS' EXPECTATIONS 9311040081 931104 BOEING IS SAID TO BE CLOSE TO WINNING KEY 737X ORDER FROM SOUTHWEST AIR BY JEFF COLE AND BRIDGET O'BRIAN STAFF REPORTERS OF THE WALL STREET JOURNAL BOEING CO IS CLOSE TO WINNING A PIVOTAL ORDER FROM SOUTHWEST AIRLINES THAT WILL LAUNCH THE AIRCRAFT MAKER'S NEXTGENERATION 737X AIRLINERS ACCORDING TO PEOPLE FAMILIAR WITH THE NEGOTIATIONS A LAUNCH ORDER BY THE SUCCESSFUL DALLASBASED CARRIER WOULD LEND CREDIBILITY TO BOEING'S 1 BILLION OVERHAUL OF ITS 25YEAROLD LINE OF TWINENGINE 737S WHICH COME IN A RANGE OF SIZES STILL TOUGH TIMES IN MOST OF THE WORLD'S AIRLINE INDUSTRY AND SOME BUYERS' MISGIVINGS ABOUT THE WEIGHT AND PERFORMANCE OF THE UPGRADED JETS SEEM LIKELY TO DRAG OUT THE PACE OF ORDERS FOR THE 737X LINE WHILE THE SIZE OF THE SOUTHWEST ORDER IS STILL UNDETERMINED A PERSON KNOWLEDGEABLE ABOUT THE TALKS SAID THE PURCHASE WILL INCLUDE AT LEAST 20 FIRM ORDERS AND POSSIBLY A SIMILAR NUMBER OF OPTIONS FIRM ORDERS FOR 20 JETS WOULD BE VALUED AT AT LEAST 800 MILLION BUT FOR BOEING THE IMPACT OF SOUTHWEST'S IMPENDING BUY WOULD BE MUCH GREATER THAN THE CASH IT WOULD GENERATE DIRECTLY BECAUSE THE ENDORSEMENT BY SOUTHWEST WILL HELP ATTRACT ORDERS FROM OTHER CARRIERS IN SEATTLE A BOEING SPOKESMAN SAID THE MANUFACTURER IS TALKING TO A NUMBER OF AIRLINES ABOUT ORDERING THE 737X AND IT IS PREMATURE TO DISCUSS WHETHER ANY ONE OF THEM IS DESTINED TO BECOME THE LAUNCH CUSTOMER FOR THE PLANE A SPOKESMAN FOR SOUTHWEST SAID THERE HAVE BEEN SOME TALKS ABOUT A PURCHASE OF THE 737X BUT HE WOULDN'T CONFIRM THAT AN ORDER IS IMMINENT WITH THE PLANNED VERSIONS THAT CARRY THE 737X DESIGNATION BOEING IS REMODELING THE 737 FAMILY TO BE MORE COMPETITIVE WITH EUROPEAN CONSORTIUM AIRBUS INDUSTRIE'S LINE OF SMALLER A320 A319 AND A321 JETLINERS THE UPGRADED 737S SCHEDULED FOR FIRST DELIVERY IN 1997 ARE EXPECTED TO FLY FARTHER AND FASTER THAN CURRENT BOEING 737400S 737300S AND 737500S BECAUSE THE NEW PLANES WILL FEATURE ADVANCED ENGINES AND NEWLY DESIGNED WINGS AND TAIL BUT BOEING NEEDS TO GET MOVING IF IT WANTS TO HAVE THE 737X AVAILABLE FOR A POSSIBLE NEW CYCLE OF AIRLINEINDUSTRY ORDERS IN 1995 OR 1996 BOEING'S DIRECTORS APPROVED OFFERING THE 737X IN JUNE AND THE BOARD IS LIKELY TO CONSIDER FORMAL APPROVAL OF A LAUNCH OF THE NEW VERSIONS AT A MIDDECEMBER MEETING THE STUBBYLOOKING 737 BOEING'S BESTSELLING AIRLINER IS WELLSUITED TO SOUTHWEST'S NICHE OF SHORTHAUL FREQUENT FLIGHTS THE AIRLINE HAS BEEN THE LAUNCH CUSTOMER ON TWO VERSIONS OF THE 737 AND IN ITS 22 YEARS OF OPERATION HASN'T FLOWN ANYTHING BUT 737S CURRENTLY SOUTHWEST'S 157 JETLINERS HAVE BETWEEN 122 TO 137 SEATS LATELY SOUTHWEST HAS BEEN EXPANDING ALMOST FASTER THAN IT CAN GET PLANES BURSTING INTO THE CALIFORNIA MARKET IN 1990 AND 1991 ADDING CLEVELAND AND COLUMBUS OHIO IN 1992 AND REACHING THE EAST COAST FOR THE FIRST TIME WITH BALTIMORE SERVICE WHILE THE CARRIER HAS BEEN ADDING USED JETLINERS TO ITS FLEET IT HAS HAD DIFFICULTY FINDING ENOUGH SOUTHWEST PREFERS NEW AIRCRAFT WITH DIGITAL COCKPITS RATHER THAN THE COMPUTERIZED GLASS COCKPITS MANY NEWER MODELS HAVE SO THAT ALL ITS FLIGHT DECKS ARE IDENTICAL THAT MEANS ANY SOUTHWEST PILOT CAN FLY ANY SOUTHWEST PLANE REGARDLESS OF ITS AGE OR MODEL CUTTING DOWN SIGNIFICANTLY ON TRAINING COSTS WHILE THE SOUTHWEST ORDER WOULD HELP BOEING LURE OTHER BUYERS IT WON'T ASSURE A SMOOTH FLOW OF SALES STEVEN UDVARHAZY PRESIDENT OF AIRCRAFTLEASING MARKET LEADER INTERNATIONAL LEASE FINANCE CORP BASED IN BEVERLY HILLS CALIF SAID SOUTHWEST'S NEEDS DIFFER SHARPLY FROM THOSE AT MANY OTHER AIRLINES THAT ARE POTENTIAL BUYERS OF THE 737X MR UDVARHAZY SAID BOEING WANTS HIS COMPANY A UNIT OF NEW YORKBASED INSURER AMERICAN INTERNATIONAL GROUP INC TO SIGN FOR 25 FIRM ORDERS AND OPTIONS TO BUY 737X JETS BUT HE ADDED THAT HE HAS CONCERNS ABOUT THE SUBSTANTIALLY HIGHER WEIGHT OF THE 737X LINE COMPARED WITH TODAY'S MODELS HE SAID HE ALSO IS CONCERNED ABOUT THE PLANES' ABILITY TO MEET SOME PERFORMANCE GOALS AND TO PRODUCE PROMISED MAINTENANCE SAVINGS WE NEED TO STUDY SOME MORE THE PERFORMANCE OF THE AIRCRAFT SAID MR UDVARHAZY ADDING THAT HE WANTS WRITTEN GUARANTEES OF MAINTENANCE SAVINGS NOT JUST IN A BROCHURE HE NOTED THAT PLANS FOR THE 157PASSENGER 737400X MODEL SHOW IT IS 13000 POUNDS HEAVIER THAN TODAY'S 146PASSENGER 737400 WE GENERALLY FIND THAT WHEN AN AIRCRAFT'S WEIGHT GOES UP THE MAINTENANCE COST GOES UP 9311040080 931104 TECHNOLOGY & HEALTH MOYNIHAN TO ADD HANDGUNBULLETS TAX TO HEALTHCARE BILL IN HIS COMMITTEE BY RICK WARTZMAN AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN SAID HE CAN'T IMAGINE A HEALTHCARE REFORM BILL EMERGING FROM HIS PANEL WITHOUT A TAX INCREASE ON HANDGUN AMMUNITION THE NEW YORK DEMOCRAT YESTERDAY INTRODUCED LEGISLATION THAT WOULD INCREASE TO 50 FROM 11 THE LEVY ON SUCH BULLETS EXCEPT FOR THOSE TYPICALLY USED FOR TARGET SHOOTING HIS ACTION CAME AS THE WHITE HOUSE BATTLE WITH THE NATION'S HEALTH INSURERS ESCALATED PRESIDENT CLINTON LAMBASTED THE INDUSTRY AND AN OFFICIAL ON THE DEMOCRATIC NATIONAL COMMITTEE UNEXPECTEDLY SHOWED UP AT THE INSURERS' TRADE ASSOCIATION TO TAKE ON ITS LATEST TELEVISION ADVERTISEMENT MR CLINTON DURING A VISIT TO THE AMBRIDGE AREA HIGH SCHOOL JUST SOUTH OF PITTSBURGH SAID THE INSURANCE INDUSTRY INCLUDES 1500 SEPARATE COMPANIES THAT WRITE THOUSANDS OF POLICIES DESIGNED TO DIVIDE PEOPLE INTO GROUPS SO SMALL THAT IN SOME CASES 40 OF YOUR PREMIUM GOES TO OVERHEAD PROFIT AND ADMINISTRATIVE COSTS THERE IS A LOT OF MONEY IN THIS HEALTHCARE SYSTEM THAT DOESN'T HAVE RIP TO DO WITH YOUR HEALTH CARE THE PRESIDENT ASSERTED BILL GRADISON PRESIDENT OF THE HEALTH INSURANCE ASSOCIATION OF AMERICA SAID THAT DESPITE A 65 MILLION ADVERTISING CAMPAIGN CRITICIZING THE CLINTON HEALTHCARE PLAN HIS GROUP AGREES WITH THE WHITE HOUSE ON MANY ISSUES WHERE DIFFERENCES EXIST SUCH AS OVER COST CONTROLS PROPOSED BY MR CLINTON WE THINK THESE CAN BE RESOLVED THROUGH MEANINGFUL DIALOGUE AND NEGOTIATIONS AND WE'VE NEVER HAD AN OPPORTUNITY TO DO THAT MR GRADISON SAID AT A FINANCE COMMITTEE HEARING YESTERDAY MR MOYNIHAN PRESSED TREASURY SECRETARY LLOYD BENTSEN FOR SUPPORT IN RAISING THE TAX ON HANDGUN BULLETS MR BENTSEN HOWEVER WAS NONCOMMITTAL OBVIOUSLY THAT IS A SOURCE OF REVENUE THAT COULD BE EXAMINED THE TREASURY SECRETARY SAID AS HE TESTIFIED THE ADMINISTRATION RELEASED A NEW BREAKDOWN ON THE FINANCING SCHEME UNDERLYING THE CLINTON PROPOSAL HILLARY RODHAM CLINTON HAS EXPRESSED SUPPORT FOR BOOSTING THE AMMUNITION TAX BUT AFTER THE HEARING MR MOYNIHAN GROUSED THAT THE CLINTON ADMINISTRATION ISN'T MORE ENTHUSIASTIC ABOUT THE IDEA THERE'S A LOT OF AMMUNITION OUT THERE THAT JUST DESTROYS BODIES THE SENATOR TOLD REPORTERS ADDING THAT HANDGUNS KILL MORE THAN 24000 AMERICANS A YEAR WE COULD TAX IT OUT OF EXISTENCE WHAT WE HAVEN'T GOT IS ANYBODY DOWNTOWN AT THE WHITE HOUSE WHO GETS IT IT'S UNCLEAR HOW POLITICALLY FEASIBLE IT IS TO SEEK AN INCREASE IN THE AMMUNITION TAX WHICH HAS GONE UP A MERE ONE PERCENTAGE POINT SINCE 1919 THE NATIONAL RIFLE ASSOCIATION ALTHOUGH LESS POTENT THAN IT HAS BEEN IN THE PAST IS STILL A POLITICALLY POWERFUL FORCE IT CHEERED THIS WEEK AS DEMOCRATIC GUBERNATORIAL CANDIDATES WHO CHALLENGED THE GUN LOBBY WERE DEFEATED IN VIRGINIA AND NEW JERSEY MR MOYNIHAN SAID HIS BILL WOULD INCLUDE A 10000 TAX ON THE WINCHESTER 9MM HOLLOWTIPPED BLACK TALON BULLET AND ALL 50CALIBER BULLETS WHICH HE SAID HAVE NO PURPOSE OTHER THAN TO CAUSE THE GREATEST POSSIBLE DESTRUCTION OF HUMAN LIFE THE BILL ALSO WOULD IMPOSE A 10000 OCCUPATIONAL TAX ON MANUFACTURERS AND IMPORTERS OF HANDGUN AMMUNITION MR CLINTON'S TIRADE AGAINST INSURERS WHICH FOLLOWED SIMILAR INVECTIVE FROM MRS CLINTON EARLIER THIS WEEK CAME AS THE HEALTH INSURANCE ASSOCIATION UNVEILED ITS LATEST TV SPOT ATTACKING THE PRESIDENT'S PLAN THE AD SHOWS TWO WOMEN DISCUSSING THE PRESIDENT'S PROPOSED CAPS ON PRIVATESECTOR INSURANCE PREMIUMS BUT WHAT IF THERE'S NOT ENOUGH MONEY ONE OF THE WOMEN ASKS I MEAN WHAT HAPPENS THEN THERE'S GOTTA BE A BETTER WAY THE OTHER WOMAN RESPONDS FORMER OHIO GOV RICHARD CELESTE WHO IS HEADING A DEMOCRATIC NATIONAL COMMITTEE EFFORT TO SELL THE CLINTON HEALTH PLAN MADE A SURPRISE VISIT TO THE INSURANCE ASSOCIATION'S WASHINGTON OFFICES WHERE THE GROUP WAS SHOWING THE NEW TV AD TO REPORTERS HE THEN HELD HIS OWN IMPROMPTU NEWS CONFERENCE NEAR THE ELEVATORS MR CELESTE DEFENDED THE PREMIUM CAPS IN THE CLINTON PLAN AS MEANINGFUL COST CONTAINMENT AND ACCUSED THE INSURERS OF ENGAGING IN A BAITANDSWITCH GAME IN WHICH THEY CLAIM TO HAVE A BETTER WAY BUT HAVEN'T SHOWN IT IN PENNSYLVANIA MR CLINTON TOOK A SIMILAR JAB DECLARING THAT THE INSURANCE ASSOCIATION SAYS IT HAS A BETTER IDEA EXCEPT WE'RE ALL STILL WAITING FOR IT SEVERAL INSURERS MEANWHILE ARE TRYING TO DISTANCE THEMSELVES FROM THE CONTROVERSIAL ADS A COALITION MADE UP OF THE NATION'S FIVE LARGEST INSURERS IS ACTIVELY POINTING OUT THAT ITS GROUP HAD NOTHING TO DO WITH THE ADS AND THE PRESIDENT OF THE BLUE CROSSBLUE SHIELD ASSOCIATION WROTE TO MRS CLINTON YESTERDAY SAYING THAT WHILE IT'S UNFORTUNATE THAT THE HEALTH INSURANCE ASSOCIATION OF AMERICA HAS CHOSEN TO AGGRESSIVELY CHALLENGE YOUR HEALTHCARE REFORM INITIATIVE THROUGH NATIONAL ADVERTISING IT IS ALSO UNFORTUNATE THAT YOU HAVE CHOSEN TO PAINT ALL INSURERS WITH THE SAME BRUSH 9311040079 931104 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY COMMISSION FOR THE FIRST TIME FLUBBED THE TIMING IN ITS MERGER REGULATIONS FORFEITING ITS RIGHT TO INTERVENE IN A SPICEINDUSTRY CASE CRITICS OF EC MERGER CONTROL HAVE CLAIMED THAT THE COMMISSION COULDN'T MEET THE STRICT DEADLINES IN TOUGH CASES THE MIXUP INVOLVES THE PROPOSED ACQUISITION OF THE GERMAN SPICE GROUP KARL OSTMANN GMBH BY TWO US FOOD CONCERNS MCCORMICK & CO AND CPC INTERNATIONAL INC AND THE DUTCH RABO MERCHANT BANK NV THE EC WAS NOTIFIED OF THE DEAL SEPT 15 AND GERMANY REQUESTED THE CASE BE REFERRED TO ITS CARTEL AGENCY THE EC HAS A MONTH TO DECIDE WHETHER MERGERS POSE ANTITRUST PROBLEMS AND MAY CONDUCT SUBSEQUENT INQUIRIES BUT AN EC MEMBER'S REQUEST FOR REFERRAL EXTENDS THE INITIAL STUDY PERIOD TO SIX WEEKS IN PREPARING A SECONDSTAGE INQUIRY IN THE SPICE DEAL THE EC INADVERTENTLY MISSED THE SIXWEEK DEADLINE BY A DAY SENDING THE CASE TO GERMAN COMPETITION OFFICIALS ALREADY ANGRY BECAUSE THE EC REJECTED GERMAN JURISDICTION IN OTHER CASES FOREIGN BUSINESS INVESTMENT IN CHINA TOPPED 15 BILLION THIS YEAR THROUGH SEPTEMBER AND THE TRADE MINISTRY APPROVED 62789 JOINT VENTURES AND PROJECTS WITH CONTRACTED FOREIGN FUNDING TOTALING 83 BILLION UP 170 FROM PLEDGED INVESTMENT A YEAR EARLIER FOREIGN INVESTORS HAVE BURST INTO CHINA SINCE LAST YEAR'S OPENING OF SECTORS SUCH AS COMMUNICATIONS PORTS AND POWER PLANTS INVESTMENT ALSO GREW AFTER CHINA WHICH HAD RESTRICTED FOREIGN FIRMS TO MANUFACTURING BASES FOR EXPORTS ALLOWED THEM TO SELL PRODUCTS DOMESTICALLY THE PALESTINE LIBERATION ORGANIZATION SET UP AN AGENCY TO OVERSEE INVESTMENT OF FOREIGN AID IN THE WEST BANK AND GAZA STRIP THE PALESTINE EMERGENCY DEVELOPMENT RECONSTRUCTION AUTHORITY WILL BE RESPONSIBLE FOR BUILDING UP THE OCCUPIED TERRITORIES ONCE ISRAEL TURNS OVER THEIR GOVERNANCE TO THE PALESTINIANS CREATION OF THE AGENCY WAS REQUIRED BY THE WORLD BANK FOR IT TO RECOMMEND THAT DONOR COUNTRIES GIVE AID TO THE PALESTINIANS AID PLEDGES TOTAL 2 BILLION OVER FIVE YEARS UNLESS ITS WORST DROUGHT IN TWO DECADES ENDS SOON TAIWAN WILL SUSPEND ANNUAL DECEMBER PLANTING AT 40 OF ALL RICE PADDIES WITHOUT TYPHOONS THIS YEAR TO PRODUCE USUAL HEAVY RAINS RESERVOIRS ARE AT 14 OF CAPACITY THE SHORTAGE AFFECTS 200320 ACRES OF RICE FIELDS THAT DEPEND MAINLY ON RESERVOIR WATER FARMERS WHO WILL GET COMPENSATION OF 275 AN UNTENDED ACRE EXPECT BAD HARVESTS BECAUSE OF IRRIGATION CUTS TO SAVE WATER FOR HOUSEHOLD USE THE EUROPEAN PUBLISHERS COUNCIL APPEALED TO BE FREED FROM RESTRICTIVE MERGER LAWS SO MEMBERS CAN COMPETE WITH US AND JAPANESE FIRMS FOR A STAKE IN THE MULTIMEDIA MARKET THE GROUP OF 26 MEDIA COMPANIES SAID THEIR POTENTIAL ALSO IS LIMITED BY PROTECTED STATE MEDIA ENTERPRISES WHILE FOREIGN RIVALS USE JOINT VENTURES AND TAKEOVERS FOR FOOTHOLDS IN THE GLOBAL BATTLE PUBLISHING TELECOMMUNICATIONS ENTERTAINMENT COMPUTER CABLE AND SATELLITE CONCERNS ARE FORGING ALLIANCES AND INVESTING HEAVILY TO CONTROL AN ENVISIONED TWOWAY INFORMATION AND SERVICES SYSTEM BETWEEN CONSUMERS AND PRODUCERS BEER NOW IS THE MOST POPULAR ALCOHOLIC DRINK IN CHINA SUPPLANTING RICE WINE AND SPIRITS AN INDUSTRY SURVEY FOUND YET BEER CONSUMPTION PER CAPITA IS 4 GALLONS A YEAR A GROWTH NICHE COMPARED WITH 21 GALLONS IN THE US AND 385 IN GERMANY CHINA HAS ABOUT 800 BREWERIES DOUBLE THE TOTAL A DECADE AGO AND PRODUCTION CAPACITY HAS GROWN AT A 20 ANNUAL RATE SINCE 1984 CHINA COULD MAKE 97 MILLION BARRELS OF BEER THIS YEAR ABOUT HALF THE US OUTPUT OF 200 MILLION BARRELS ANNUALLY A TOP SINGAPORE CIVIL SERVANT WAS ACCUSED OF 22 CRIMINAL COUNTS OF FORGERY CHEATING AND CORRUPTION THE CHARGES AGAINST YEO SENG TECK OF THE POWERFUL MINISTRY OF TRADE AND INDUSTRY ARE RELATED TO SALES OF ART AND ANTIQUES IN THE PAST FIVE YEARS TO GOVERNMENT AGENCIES AND A COMPANY CONTROLLED BY THE GOVERNMENT SUCH CASES ARE RARE IN SINGAPORE WHERE ANTICORRUPTION LAWS ARE STRICTLY ENFORCED AND THE BUSINESS CULTURE IS REMARKABLY FREE OF DEALS FAVORS AND BRIBES THAT ARE COMMON IN ASIA MR YEO WAS SUSPENDED AS CHIEF EXECUTIVE OF THE TRADE DEVELOPMENT BOARD AND CHAIRMAN OF THE GOVERNMENT'S JURONG TOWN CORP THE BOARD PROMOTES EXPORTS AND RELATED INDUSTRIES AND JURONG BUILDS AND OPERATES INDUSTRIAL PARKS THE 49YEAROLD MR YEO WHO COULDN'T BE REACHED FOR COMMENT IS WELL KNOWN IN SINGAPORE AS AN ART COLLECTOR THE CHARGES INVOLVE SALES OF CHINESE CERAMICS AND ANTIQUES TO JURONG TO THE GOVERNMENT'S EMPRESS PLACE MUSEUM AND TO GOVERNMENTCONTROLLED NATIONAL IRON & STEEL MILLS LTD MR YEO ALSO IS CHAIRMAN OF BOTH THE MUSEUM AND NATSTEEL AN OUTBREAK OF MOSQUITOBORNE DENGUE FEVER HAS SPREAD FROM THE COSTA RICAN COUNTRYSIDE TO THE CAPITAL SAN JOSE AT LEAST 1793 CASES HAVE BEEN REPORTED THE ILLNESS IS CHARACTERIZED BY HIGH FEVER HEADACHES DIARRHEA AND NOSEBLEEDS OF TOP GERMAN BANKERS SURVEYED BY ANDERSEN CONSULTING AND THE ECONOMIST INTELLIGENCE UNIT 71 BELIEVED THAT HOSTILE TAKEOVERS TRADITIONALLY CONSIDERED UNSEEMLY WILL BECOME MORE COMMON 9311040078 931104 AUTO MAKERS LOSE EMISSION RULING IN MASSACHUSETTS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON ADVOCATES OF STRICTER VEHICLEEMISSION STANDARDS SCORED A SIGNIFICANT VICTORY WHEN A FEDERAL COURT REFUSED TO STOP MASSACHUSETTS FROM ENFORCING A LOWEMISSION VEHICLE PROGRAM BEGINNING WITH MODEL YEAR 1995 THE DENIAL OF A PRELIMINARY INJUNCTION COULD HAVE AN IMPACT THROUGHOUT THE NORTHEAST WHERE THE AUTO INDUSTRY HAS LOCKED HORNS WITH STATE ENVIRONMENTAL REGULATORS OVER HOW TO INTRODUCE LOWEREMISSION VEHICLES LIKE THE ONES SOLD IN CALIFORNIA I THINK IT'S A GRAND SLAM HOME RUN SAID PAUL BILLINGS COORDINATOR OF ADVOCACY FIELD SERVICES AT THE AMERICAN LUNG ASSOCIATION THE AUTO INDUSTRY HAS SPENT MILLIONS OF DOLLARS TO DEFEAT THE LOWEMISSION VEHICLE PROGRAM IN MASSACHUSETTS NEW YORK AND OTHER STATES TODAY THE GOOD GUYS WON AND CLEAN AIR IS THE VICTOR THE AUTO INDUSTRY SOUGHT TO PLAY DOWN THE DECISION RENDERED IN US DISTRICT COURT IN BOSTON THIS WASN'T UNEXPECTED SAID BILL WINTERS A SPOKESMAN FOR THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION WHICH ALONG WITH OTHER INDUSTRY GROUPS HAD SOUGHT THE INJUNCTION HE ADDED THAT THE COURT WHILE NOT GRANTING THE INJUNCTION WILL STILL TRY THE AUTO GROUPS' COMPLAINTS SEEKING PERMANENT RELIEF FROM EMISSION RULES THE DISPUTE STEMS FROM STATE ENVIRONMENTAL REGULATIONS REQUIRING VEHICLES THAT MIRROR CALIFORNIA EMISSION STANDARDS CALIFORNIA REQUIRES THAT ALL CARS SOLD THERE MEET EMISSIONS STANDARDS BELOW FEDERAL REQUIREMENTS WITH SOME MODELS REQUIRED TO BE 50 LOWER NORTHEAST STATES SUCH AS MASSACHUSETTS AND NEW YORK WANT THE CAR MAKERS TO ADHERE TO THE CALIFORNIA REQUIREMENTS IN THEIR STATES WITHOUT DICTATING REFORMULATED FUEL AS CALIFORNIA HAS DONE THE AUTO INDUSTRY CONTENDS THAT REQUIRING THE INTRODUCTION OF THE LOWEMISSION CARS WITHOUT THE REFORMULATED FUEL VIOLATES FEDERAL REGULATIONS BY FORCING IT TO BUILD A THIRD CAR THAT HAS LOW EMISSIONS BUT RUNS ON STANDARD FUEL FEDERAL REGULATIONS SAY AUTO MAKERS NEED ONLY TO MEET TWO SETS OF ENVIRONMENTAL STANDARDS FEDERAL AND CALIFORNIA BUT YESTERDAY'S RULING APPEARED TO WEAKEN THE AUTO INDUSTRY'S ARGUMENT BY SIDING WITH MASSACHUSETTS ENVIRONMENTAL OFFICIALS WHO ARGUED THAT CALIFORNIA FUEL WASN'T REQUIRED FOR CALIFORNIA VEHICLES IN HIS DECISION JUDGE A DAVID MAZZONE SAID THE STATE REGULATORS HAD SUCCEEDED IN DISCREDITING THE STUDY UPON WHICH AUTO MAKERS RELY MR WINTERS THE AUTO MAKERS SPOKESMAN INSISTED THAT THE JUDGE HADN'T FULLY LISTENED TO THE INDUSTRY'S ARGUMENTS HE DIDN'T CONSIDER ALL THE EVIDENCE WE PROVIDED MR WINTERS ADDED IN NEW YORK STATE ENVIRONMENTAL REGULATORS SAID THE RULING WOULD SUPPORT THEIR OWN CLEANAIR PROPOSALS EMBROILED IN THEIR OWN CASE WITH AUTO MAKERS STATE REGULATORS NOTED THAT JUDGE MAZZONE'S DECISION DREW SEVERAL PARALLELS TO THE CONTINUING NEW YORK CASE 9311040077 931104 LEISURE & ARTS TV AMERICA'S SOLDIER MRS ASSASSIN AND KING OF CAMELOT BY DOROTHY RABINOWITZ THE SUCCINCT AND ACCURATE DESCRIPTION PROVIDED AT THE BEGINNING OF THIS FILM INTRODUCES DWIGHT DAVID EISENHOWER AS A HERO OF OUR TIME A SOLDIER OF DEMOCRACY NARRATED BY DAVID MCCULLOUGH THIS CHAPTER OF THE AMERICAN EXPERIENCE ASSESSES THE LIFE AND CAREER OF THIS SON OF A PACIFIST HIS MOTHER WAS A MEMBER OF JEHOVAH'S WITNESSES WHO WOULD GO ON TO BECOME SO ILLUSTRIOUS A SOLDIER IT IS A VIBRANT SHARPLY ETCHED PORTRAIT THAT EMERGES AND A HEROIC ONE TOO NOTWITHSTANDING THE CONTRIBUTIONS HERE OF COMMENTATORS LIKE ARTHUR SCHLESINGER JR WHO DESCRIBES MR EISENHOWER ICILY AS A CRAFTY SELFPROTECTIVE MAN MR SCHLESINGER IS SCORNFUL SPECIFICALLY OF MR EISENHOWER'S LEADERSHIP DURING THE MCCARTHY YEARS AND THE SCHOOL INTEGRATION BATTLES CONTROVERSIES GIVEN THEIR DRAMATIC DUE IN THIS FILM BUT FOR PURE DRAMA THERE IS NOTHING THAT CAN COMPARE WITH THE STORY THAT COMES BEFORE SPUN OUT HERE IN FINE DETAIL OF THE YOUTH AND UPBRINGING THAT FORMED THE MAN OF THE FUTURE GENERAL'S EARLY AND APPARENTLY PROSPECTLESS ARMY YEARS OF THE ARRIVAL OF WAR AND THE NEED AS GEORGE MARSHALL QUICKLY UNDERSTOOD OF JUST SUCH A MIND AND TEMPERAMENT AS EISENHOWER HAD TO LEAD THE LONG MARCH TO THE DDAY LANDINGS IT IS THE STORY IN SHORT OF A SOLDIER'S LIFE AND CAREER THAT REACHED ITS SUMMIT IN A SCHOOLHOUSE IN REIMS AT 241 AM ON MAY 7 1945 THE HOUR OF THE GERMANS' UNCONDITIONAL SURRENDER SHORT CLIPS OF PAST PROGRAMS AND OF LIFE WITH THE STARS OF 60 MINUTES COMPRISE THE BULK OF THIS ENDEAVOR WHOSE SUBJECT IS JUST WHAT THE TITLE SAYS AND A VERY GOOD SHOW IT IS UNLIKE MOST SUCH RETROSPECTIVES THIS PIECE OF UNABASHED AND INVARIABLY INTERESTING SELFCELEBRATION HAS A DOCUMENTARY POWER LOOK AT THE VILLAINS HERE THE HEROES OR JUST THE HAIRCUTS TELEVISION THAT IS OFFERS FEW MORE ACCURATE REFLECTIONS OF OUR CULTURAL AND POLITICAL PREOCCUPATIONS OVER THE PAST 25 YEARS THAN A COMPENDIUM OF WHAT 60 MINUTES REGARDS AS THE BEST AND BRIGHTEST OF ITS JOURNALISTIC ADVENTURES THE TITLE MAY SCREECH OTHERWISE BUT THIS FICTIONAL TALE TORN AS THE SAYING GOES FROM THE HEADLINES MANAGES A CERTAIN COMPLEXITY IN ITS PORTRAYAL OF A WOMAN LESLEY ANN WARREN WHO KILLS THE MAN WHO RAPED AND BATTERED HER YOUNG DAUGHTER THE TRICK HERE IS IN THE CREDIBLE AS THESE FILMS GO CHARACTERIZATIONS OR MORE PRECISELY IN ACTORLY SKILLS PARTICULARLY AS EVIDENT IN BRUCE DAVISON'S PERFORMANCE AS A HELPLESS HEADOFTHEFAMILY AND IN THE EXCELLENT SHIRLEY KNIGHT PORTRAYAL OF A BEFUDDLED MOTHER SHARPE THE HERO OF THIS FIVEPART SERIES BASED ON A BERNARD CORNWELL NOVEL IS A DOUGHTY SPECIMEN OF BRITISH SOLDIERY SERVING IN THE WAR AGAINST NAPOLEON A TOUGH CUSTOMER WHO SAVES THE LIFE OF THE OFFICER ONE DAY TO BE KNOWN AS THE DUKE OF WELLINGTON SHARPE SEAN BEAN GETS NO RESPECT FROM HIS MEN WHO WANT GENTLEMEN OF THE UPPER CLASSES AS COMMANDERS VIEWERS FOND OF THEIR REGULAR DOSAGES OF CLASS CONFLICT IN MASTERPIECE THEATRE VEHICLES WILL FIND NO LACK OF UPSTAIRSDOWNSTAIRS TODO MILITARY STYLE IN THIS FAIRTOMIDDLING HANDSOMELY MOUNTED EPIC WHOSE INSTALLMENTS STRETCH ALL THE WAY THROUGH DEC 5 LOTS OF VIOLENCE HERE TOO BUT DON'T EXPECT JANET RENO TO TAKE ON MASTERPIECE THEATRE HERE IS MARINA OSWALD'S OWN STORY OF LIFE WITH LEE HARVEY OSWALD AND THE DETAILS OF HER OSTRACISM AND SUFFERING FOLLOWING THE ASSASSINATION OF JOHN F KENNEDY AND HER HUSBAND'S ARREST AND SUBSEQUENT MURDER IT IS AN UNMITIGATEDLY VACUOUS NOT TO SAY SELFSERVING TALE THAT WADDLES HITHER AND YON AND ARRIVES FINALLY AT OLIVER STONELIKE HINTS OF DARK CONSPIRACIES AMONG THE ACTUAL PRESIDENTIAL ASSASSINS COVERUPS ETC ETC EVEN SO A CASE CAN BE MADE FOR WATCHING THIS IF ONLY TO SEE HELENA BONHAM CARTER'S REMARKABLE PORTRAYAL OF MARINA OSWALD WHOSE PUBLIC PERSONA WHOSE MANNER AND VERY ACCENTS SHE HAS UNERRINGLY CAUGHT WHETHER MS BONHAM'S PERFORMANCE CAN MAKE UP FOR A SCRIPT LIKE THIS WITH ITS UNADULTERATEDLY NITWITTED LYRICAL ENDING IS ANOTHER QUESTION THIS STRAIGHTFORWARD CELEBRATION OF JOHN F KENNEDY'S LIFE AND ACCOMPLISHMENTS SUCCEEDS IN THE MIDST OF THE ADMIRING ENCOMIUMS FROM FRIENDS AND FAMILY IN DROPPING IN A FAIR NUMBER OF ACUTE AND INFORMATIVE PERSONAL OBSERVATIONS FROM ONE OBSERVER WE LEARN OF MR KENNEDY'S DISLIKE OF LARGE FAMILIES BECAUSE HIS OWN EXPERIENCE OF HAVING GROWN UP IN ONE WAS LIKE HAVING BEEN REARED IN AN INSTITUTION ANOTHER TELLS OF HIS CONTINUOUS RESTIVENESS AND ANOTHER A WOMAN TELLS CRYPTICALLY TO BE SURE OF BEING DRAWN INTO AN AFFAIR WITH HIM IT IS ON THE WHOLE AN ATTRACTIVE PORTRAIT OF A MAN WHOSE ESSENTIAL FORTITUDE WAS CLEARLY EXTRAORDINARY ONE WHO LIVED THE BETTER PART OF HIS ADULT LIFE AND CAREER IN CONSTANT AND SEVERE BACK PAIN ALTOGETHER A DECENT FILM NOTWITHSTANDING OCCASIONAL ANNOYANCES SUCH AS LETITIA BALDRIGE'S RECITATION ON HOW AMERICA WAS OLD AND STUFFY BEFORE THE KENNEDYS CAME WITH THEIR CLASS GRACE STYLE AND ELEGANCE SAVING THE NATION FROM THE CREAKINESS OF THE ROOSEVELTS WHO WERE THERE FOR CENTURIES AND THE TRUMANS WHO WEREN'T EXACTLY ZIPPY A LOT OF AMERICANS WITH DIFFERENT NOTIONS OF CLASS GRACE AND ELEGANCE THAN THE ONE MS BALDRIGE SEEMS TO HOLD WILL BEG TO DIFFER 9311040076 931104 LEISURE & ARTS BOOKSHELF TWO TERRYS AND THE PIRATES BY GERALD F SEIB EACH DECADE IT SEEMS GETS AN INTERNATIONAL SCOURGE ALL ITS OWN THE '60S HAD GUERRILLA MOVEMENTS AND THE '70S HAD AIRPLANE HIJACKINGS THE '80S HAD HOSTAGETAKING IT WAS LARGELY A MIDDLE EASTERN PHENOMENON AND A PARTICULARLY INHUMANE ONE AT THAT OUT OF SOME COMBINATION OF POLITICAL AND RELIGIOUS FERVOR THE NOTORIOUS SHADOWY ISLAMIC ORGANIZATIONS WOULD GRAB WESTERNERS BLINDFOLD THEM AND QUITE LITERALLY CHAIN THEM TO WALLS FOR YEARS AT A TIME NOW THERE IS REASON TO BELIEVE THE HOSTAGE SCOURGE MAY HAVE PLAYED ITSELF OUT THIS TACTIC IS NOT USEFUL ONE OF JOURNALIST TERRY ANDERSON'S SHIITE MUSLIM CAPTORS TOLD HIM IN 1991 ON HIS 2454TH AND FINAL DAY AS A HOSTAGE IN LEBANON WE WILL NOT DO IT AGAIN WE ARE NOT GIVING UP BUT WE WILL USE OTHER MEANS THAT IN FACT IS THE ONE UPBEAT NOTE THAT CLEARLY RINGS THROUGH BOOKS WRITTEN BY THE TWO MOST FAMOUS OF THE 1980S HOSTAGES MR ANDERSON OF THE ASSOCIATED PRESS HAS WRITTEN A PARTICULARLY COMPELLING ACCOUNT IN DEN OF LIONS MEMOIRS OF SEVEN YEARS CROWN 368 PAGES 25 A PAINFULLY BLUNT AND REMARKABLY DETAILED ACCOUNT OF SEVEN LOST YEARS TERRY WAITE THE ANGLICAN CHURCH ENVOY WHO WAS NABBED WHILE TRYING TO NEGOTIATE FREEDOM FOR OTHER HOSTAGES HAS PRODUCED A MORE MEANDERING COMBINATION BIOGRAPHY AND DIARY OF HIS FOUR YEARS IN SOLITARY CONFINEMENT IN TAKEN ON TRUST HARCOURT BRACE 352 PAGES 2495 AS THESE TWO TERRYS RECOUNT THEIR HORRIFIC TALES OF IMPRISONMENT WHICH AT ONE POINT FOUND THEM TAPPING MORSECODELIKE MESSAGES TO EACH OTHER THROUGH A WALL ONE SENSES THEIR FRUSTRATIONS MOUNTING WITH EACH PETTY INDIGNITY HEAPED ON THEM BY THEIR YOUNG LEBANESE CAPTORS LATRINE TIME IS LIMITED TO 10 MINUTES DAILY PRECIOUS BOOKS AND RADIO PRIVILEGES ARE TANTALIZINGLY OFFERED AND THEN WITHDRAWN OUT OF SPITE BLINDFOLDS MUST BE SNAPPED INTO PLACE WHENEVER GUARDS ARE PRESENT AT ONE POINT HIS ISLAMIC JIHAD CAPTORS MOVED MR WAITE A 6FOOT7 GIANT FROM ONE LEBANESE APARTMENT WRAPPED IN MASKING TAPE AND STUFFED INTO A CLOSED REFRIGERATOR NEARLY KILLING HIM IN THE PROCESS BUT IN THE TWO TERRYS' BRIEF AND OCCASIONALLY POIGNANT EXCHANGES WITH THEIR CAPTORS SOMETHING MORE INTRIGUING IS REVEALED ONE ALSO SENSES THE HOSTAGETAKERS' FRUSTRATION IS MOUNTING THIS ISN'T WORKING HOW DO WE GET OUT OF IT IN FACT THE HOSTAGETAKERS GOT OUT OF IT ONLY BY GIVING UP AND THAT IN THE END IS THE REAL LESSON OF THESE TWO MEN'S STRUGGLES THE SAGA OF THE HOSTAGES IN LEBANON ILLUSTRATES THAT THE WAY TO SQUELCH HOSTAGETAKING ISN'T TO NEGOTIATE WITH HOSTAGETAKERS BUT TO DEMONSTRATE THAT KIDNAPPING DOESN'T BRING REWARDS BUT THE HEROES OF THIS SAGA AREN'T ANY OF THE POLITICIANS OR BUREAUCRATS WHO DID SUCH A POOR AND HYPOCRITICAL JOB OF CARRYING OUT AMERICA'S NONEGOTIATIONS POLICY THE HEROES ARE THE TERRY ANDERSONS AND TERRY WAITES WHO ENDURED A LIVING HELL IN CHAINS SO THAT THE SCOURGE OF HOSTAGETAKING MIGHT SUBSIDE AN ASIDE JUST 10 DAYS AFTER MR WAITE WAS TAKEN IN EARLY 1987 I WAS TAKEN PRISONER IN SIMILAR FASHION WHILE REPORTING IN IRAN BLINDFOLDED AND KEPT IN EVIN PRISON UNDER INTERROGATION BUT I WAS RELEASED AFTER ONLY FOUR COMPARATIVELY PAINLESS DAYS MR ANDERSON WHO WAS HELD LONGEST PROVIDES THE MOST VIVID ACCOUNT YET OFFERED BY ANY OF LEBANON'S HOSTAGES HE WAS THE CHIEF MIDDLE EAST CORRESPONDENT FOR THE ASSOCIATED PRESS WHEN SHIITE EXTREMISTS TOSSED HIM INTO THE BACK OF A MERCEDES SEDAN AND LOCKED HIM AWAY IN 1985 HIS CAPTORS WANTED TO TRADE HIM AND OTHER HOSTAGES FOR COMRADES ARRESTED IN KUWAIT FOR CARRYING OUT TERRORIST BOMBINGS HE WAS SINGLED OUT IT NOW SEEMS CLEAR BECAUSE HIS CONTACTS WITH THE US EMBASSY IN BEIRUT LED THE ISLAMIC JIHAD TO CONCLUDE THAT HE WAS AN INTELLIGENCE AGENT AS MR ANDERSON NOTES LEBANON'S POOR AND PERSECUTED SHIITE MUSLIMS HAD MANY GRIEVANCES TO NURSE BUT HOW LONG CAN THAT JUSTIFY KEEPING MEN CHAINED TO A WALL AND WHAT ARE WE TO MAKE OF PEOPLE WHO USE RELIGION TO JUSTIFY SUCH BEHAVIOR HOW CAN THIS MAN WITH HIS BELIEF IN A COMPASSIONATE AND MERCIFUL GOD' DO THE THINGS HE DOES EVERY DAY' HE ASKS IN FRUSTRATION OF ONE OF HIS GUARDS MR WAITE'S BOOK ISN'T AS CRISP BUT HIS TASK WAS HARDER HE WAS MOSTLY HELD IN SOLITARY CONFINEMENT WHICH LEFT HIM LITTLE MORE THAN HIS OWN MENTAL AGONY TO DESCRIBE MORE THAN ANY OTHER HOSTAGE MR WAITE WAS A VICTIM OF AMERICAN POLICY HIS EFFORTS TO WIN FREEDOM FOR THE HOSTAGES WERE USED AS COVER BY THE REAGAN ADMINISTRATION TO MASK ITS IRANIAN ARMS DEALS IT WASN'T A VERY SMARTLY EXECUTED POLICY AT ONE POINT BEFORE HIS CAPTURE MR WAITE HAD ARRANGED A MEETING WITH THE HOSTAGEHOLDERS OLIVER NORTH THE REAGAN ADMINISTRATION'S POINT MAN ASKED HIM TO POSE TO THE CAPTORS A QUESTION DO YOU WANT MONEY ASIDE FROM BEING A GROSS VIOLATION OF AMERICA'S POLICY AGAINST PAYING RANSOM FOR HOSTAGES THE QUESTION WAS A MONUMENTALLY INAPPROPRIATE WAY TO FEEL OUT PEOPLE FIRED BY RELIGIOUS AND POLITICAL PASSIONS IMMEDIATELY I REGRETTED PUTTING THE QUESTION MR WAITE RECALLS THE ATMOSPHERE BECAME ELECTRIC I SAT QUIETLY CURSING MY STUPIDITY MR WAITE PAID NOT FOR ANY STUPIDITY OF HIS OWN BUT FOR THE MISCALCULATIONS OF HIS COLLABORATORS WITH ANY LUCK HE AND HIS COMPATRIOTS PAID A SUFFICIENTLY HIGH PRICE THAT SUCH QUESTIONS WILL NEVER HAVE TO BE ASKED AGAIN MR SEIB WRITES THE CAPITAL JOURNAL COLUMN FROM THE JOURNAL'S WASHINGTON BUREAU 9311040075 931104 HEARD ON THE STREET ASIAN CLOSEDEND STOCK FUNDS PUT US BUYERS IN A SPELL MAKING SOME INVESTORS DISORIENTED BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PACK YOUR BAGS AND GET OUT OF JAKARTA SINGAPORE KOREA INDONESIA AND INDIA THE CLOSEDEND STOCK FUNDS THAT IS SAVVY MUTUAL FUND MONEY MANAGERS SAY IT'S TIME TO SELL SOME OF THESE ASIAN COUNTRY FUNDS THAT ARE SOARING TO NEW HIGHS AND TRADING AT STEEP PREMIUMS TO THEIR HOLDINGS IMAGINE PAYING 114 OR EVEN 149 JUST TO GET A DOLLAR'S WORTH OF STOCK THAT'S WHAT US INVESTORS ARE DOING ONLY THE STOCK THEY ARE BUYING IS IN THE FAR EAST THIS IS CRAZY IRRATIONAL FOOLISH AND IT'S NUTS SAYS ROBERT J BRINKER EDITOR OF BOB BRINKER'S MARKETIMER A COCOA BEACH FLA NEWSLETTER IT'S LIKE PAYING 12000 FOR A 10000 CAR INDIA GROWTH FUND LEAPED 1 1/2 YESTERDAY TO HIT A NEW HIGH OF 23 1/8 SAILING ALONG 49 ABOVE FRIDAY'S 1553 NET ASSET VALUE THE LATEST FIGURE AVAILABLE FOR NAV OR THE VALUE OF WHAT THE FUND HOLDS KOREAN INVESTMENT FUND IS NEAR A NEW HIGH AT 14 1/4 FOR A PREMIUM OF 35 ABOVE FRIDAY'S NAV OF 1058 ALSO TRADING AT PREMIUMS ARE ASIA PACIFIC FUND WITH A 35 PREMIUM INDONESIA FUND 23 JAKARTA GROWTH FUND 19 AND SINGAPORE FUND 13 BASED ON FRIDAY'S NAV THE NAV FIGURES ARE PUBLISHED EACH MONDAY IN THE WALL STREET JOURNAL WHAT EVER HAPPENED TO THE SLOW BOAT TO CHINA THESE FUNDS WHICH ARE PUBLICLY TRADED MAINLY ON THE NEW YORK STOCK EXCHANGE WITH A FIXED NUMBER OF SHARES OUTSTANDING AND BUY THE STOCKS OF A SINGLE FOREIGN COUNTRY ARE BEING SWEPT UP IN FRENZIED BUYING BY INVESTORS TRYING TO GET INTERNATIONAL EXPOSURE IT'S TRUE THAT ASIAN STOCK MARKETS ARE HOT IN HONG KONG THE MARKET IS UP ABOUT 74 YEARTODATE OTHER TEMPTING GAINS INCLUDE 68 IN MALAYSIA AND 47 IN SINGAPORE BUT THE SOARING CLOSEDENDS ARE PROBABLY THE WRONG PASSPORT FOR AN INVESTING TRIP ABROAD RIGHT NOW MARKET VETERANS SAY IT'S THE GREATERFOOL THEORY SAYS RON OLIN PRESIDENT OF DEEP DISCOUNT ADVISORS IN ASHEVILLE NC IT MAKES ABSOLUTELY NO SENSE TO PAY PREMIUMS FOR CLOSEDEND FUNDS BUYERS AT THESE PREMIUM LEVELS ARE JUST TRYING TO JUMP ON THE TRAIN AFTER IT'S LEFT THE STATION LEAVING THEMSELVES HIGHLY VULNERABLE IF THE FOREIGN MARKETS SINK IN THE STOCK MARKET THE RESULTS CAN BE MINDBOGGLING TAKE A LOOK AT TWO CLOSEDEND FUNDS INVESTING IN KOREA WHICH PLACES SOME CURBS ON FOREIGNERS' HOLDINGS THE TWOYEAROLD KOREAN INVESTMENT FUND ENTERED THIS WEEK TRADING AT A PREMIUM OF 35 EVEN THOUGH ITS PORTFOLIO HOLDINGS HAD A NEGATIVE RETURN AND WOUND UP SHOWING A 1 LOSS FOR THE NINE MONTHS THROUGH SEPTEMBER MEANWHILE KOREA FUND ENTERED THE WEEK WITH A 46 PREMIUM THOUGH THE PORTFOLIO WAS SHOWING AN 82 RETURN THROUGH SEPTEMBER INVESTORS DON'T KNOW WHAT THEY ARE BUYING SAYS MR OLIN THAT ISN'T STOPPING INDIVIDUALS FROM GRABBING UP SHARES AND MORE CLOSEDEND FUNDS ARE ON THE WAY TO FEED THE MASSES SAYS SUSAN PALUCH AN ANALYST WITH MORNINGSTAR CLOSEDEND FUNDS IN CHICAGO ASIA TIGERS FUND WILL BE UNDERWRITTEN BY OPPENHEIMER & CO KOREA EQUITY FUND IS TO BE MANAGED BY NOMURA SECURITIES INTERNATIONAL INC AND PAKISTAN INVESTMENT FUND WILL BE UNDERWRITTEN BY MORGAN STANLEY & CO BUYERS OF CLOSEDEND INITIAL PUBLIC OFFERINGS ARE CHARGED AS MUCH AS 7 UPFRONT TO COVER BROKERAGE COMPANY COMMISSIONS SO MARKET VETERANS SAY IT'S USUALLY CHEAPER TO BUY A CLOSEDEND AFTER THE IPO INVESTORS ARE READING STORIES ABOUT EVERY PERSON IN CHINA ONE DAY DRINKING A COKE AND GETTING EXCITED SAYS JOHN C BOWLING OF BOWLING PORTFOLIO MANAGEMENT INC IN CINCINNATI IT'S ONLY A MATTER OF TIME BEFORE PEOPLE STOP BEING EXCITED ABOUT THE CONCEPT AND LEAVE IT IN THE DUST INVESTING ABROAD IS THE RIGHT IDEA BUT THERE ARE BETTER WAYS TO GET THERE IN MR BRINKER'S VIEW HE SUGGESTS MOREDIVERSIFIED MUTUAL FUNDS CURRENTLY AVAILABLE WITHOUT LOADS SUCH AS MONTGOMERY EMERGING MARKETS FUND WHICH IS UP 34 THIS YEAR AND FIDELITY INVESTMENTS' EMERGING MARKETS FUND UP 52 TEMPTED TO BET AGAINST THOSE HOT COUNTRY FUNDS LISTEN TO PHILLIP GOLDSTEIN A PORTFOLIO MANAGER IN NEW YORK THE LAST TIME COUNTRY FUNDS CLIMBED TO OUTRAGEOUS VALUATIONS MR GOLDSTEIN SAYS HE MADE A PERSONAL BET THAT THE CRAZINESS WOULD END I REALLY GOT HURT WHEN I TRIED TO SHORT THE SPAIN FUND HE SAYS REFERRING TO THE BEARS' HABIT OF SELLING BORROWED SHARES IN HOPES OF PROFITING FROM A PRICE DROP THAT FUND WENT UP TO A 200 PREMIUM WITH NO CHANGE IN FUNDAMENTALS OR COUNTRY ECONOMICS HE SAYS THE NAV REMAINED CONSTANT AROUND 13 WHILE THE STOCK PRICE SOARED TO 39 IT'S NOW AT 11 AROUND A 6 PREMIUM WHAT HAPPENED IS THE JAPANESE INVESTORS WENT CRAZY BUYING THE FUND MR GOLDSTEIN RECALLS MAYBE US INVESTORS TODAY ARE JUST AS IRRATIONAL AS THE JAPANESE WERE IN 1989 9311040074 931104 JOB SEARCH BY PERELLA HEATS UP BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL JOSEPH PERELLA IS RUNNING ONE OF THIS MONTH'S MOST CLOSELY WATCHED AUCTIONS ON THE MERGERS AND ACQUISITIONS SCENE NO THE M&A SUPERSTAR ISN'T SELLING OFF ANOTHER LANE OF THE INFORMATION HIGHWAY HE'S AUCTIONING HIMSELF AND MR PERELLA COMMANDS INTENSE INTEREST IN A HOT MARKET FOR TOP MERGER ADVISERS AFTER RESIGNING AS CHAIRMAN OF WASSERSTEIN PERELLA & CO ON JUNE 22 MR PERELLA TOOK A MONTH OFF IN EUROPE TO PONDER HIS FUTURE SINCE SEPTEMBER HE HAS BEEN MAKING THE ROUNDS OF MAJOR WALL STREET SECURITIES FIRMS EXPLORING POSSIBLE JOBS AS A SENIOR INVESTMENT BANKER WHO COULD WORK WITH CLIENTS AND HELP THEM DO DEALS THIS WEEK SOME BANKERS SAY THE AUCTION IS HEATING UP WITH MR PERELLA MULLING JOB POSSIBILITIES AT MERRILL LYNCH & CO AND MORGAN STANLEY GROUP INC BEAR STEARNS COS IS IN THE RUNNING AS A DARK HORSE SOME SAY A DECISION COULD COME IN THE NEXT WEEK OR SO OTHERS SAY IT MAY TAKE LONGER DONALD DRAPKIN VICE CHAIRMAN OF REVLON GROUP INC AND AN EXPERT ON INVESTMENT BANKERS SAYS JOE IS A TERRIFIC TALENT AND HE'LL BE A CREDIT WHEREVER HE GOES WHICH IS PROBABLY WHY HE'S A HOT COMMODITY IT DOESN'T HURT THAT MERGER ACTIVITY IS THE BUSIEST SINCE 1989 OR THAT MANY MERGER STARS OF THE 1980S MOVED TO THE SIDELINES DURING THE LULL OF 1990 TO 1992 MR PERELLA HIMSELF DECLINES TO COMMENT A SPOKESMAN FOR MR PERELLA INSISTS MONEY HASN'T YET BEEN DISCUSSED WITH ANY OF THE SUITORS FOR THAT REASON HE SAYS THIS IS NOTHING LIKE AN AUCTION HE SAYS THE MOST IMPORTANT FACTORS IN THE DECISION WOULD BE HOW MUCH MR PERELLA COULD CONTRIBUTE TO THE FIRM AND HOW HE WOULD FIT IN WITH THE FIRM'S CULTURE ONE PERSON CLOSE TO MR PERELLA SAYS THE BANKER IS TAKING HIS TIME OUT OF A DESIRE TO AVOID REPEATING HIS EXPERIENCE WHEN HE AND BRUCE WASSERSTEIN LEFT FIRST BOSTON CORP IN A HEADLONG RUSH TO OPEN THEIR MERGER BOUTIQUE IN 1988 HE'S GOING TO BE CAREFUL SAYS THIS PERSON HE'S NOT GOING TO RUSH INTO ANYTHING IN CONTRAST WITH THE LAST SITUATION HE'S ENGINEERED A SITUATION WHERE THERE'S ABSOLUTELY NO PRESSURE HE'S NOT GOING TO MAKE A HAIRTRIGGER DECISION MR PERELLA 52 YEARS OLD HAS LABORED IN THE SHADOW OF BRUCE WASSERSTEIN EVER SINCE THEY BEGAN BUILDING THE MERGERS DEPARTMENT TOGETHER AT FIRST BOSTON IN 1977 AT TIMES HE SEEMED SENSITIVE TO THE FACT THAT SOME VIEWED MR WASSERSTEIN'S AS THE MARQUEE NAME DRAWING IN CLIENTS SEEKING PREMIER TACTICAL ADVICE WHEN WASSERSTEIN PERELLA SUFFERED A STEEP FALL IN THE M&A RANKINGS IN THE EARLY 1990S MR PERELLA AGONIZED FOR MORE THAN A YEAR BEFORE QUITTING WHAT HE WAS TRYING TO ACCOMPLISH THERE JUST WASN'T IN THE CARDS SAYS THE SAME PERSON WHEN HE DECIDED TO GO IT ALONE AND BEGAN HIS JOB HUNT MR PERELLA WAS COURTED BY 15 FIRMS HE HAS SINCE WHITTLED THE POSSIBILITIES TO A HANDFUL ENDLESS MEETINGS TO GET TO THAT POINT MR PERELLA HAS HAD TO ENDURE ENDLESS MEETINGS LISTENING TO HIGHRANKING OFFICIALS OF BIG FIRMS TELLING HIM HOW GREAT IT COULD BE TO HAVE HIM FOR THIS REASON SOME BANKERS BELIEVE THAT THERE'S AN ELEMENT OF EGO GRATIFICATION IN THE LENGTH OF TIME THAT MR PERELLA HAS ALLOCATED TO HIS SEARCH AT BOTH MERRILL AND MORGAN STANLEY MR PERELLA WOULD LIKELY HANDLE HIS OWN TWO DOZEN BEST CLIENTS BOTH DOMESTIC AND INTERNATIONAL BUT IT ISN'T CLEAR HOW MUCH ORGANIZATIONAL RESPONSIBILITY MR PERELLA WOULD GAIN AT EITHER FIRM MERRILL IS SEEN AS THE LIKELIEST TO HIRE MR PERELLA BECAUSE IT SUFFERS FROM A MISMATCH BETWEEN ITS HUGE CAPACITY TO SELL STOCKS AND BONDS ON THE ONE HAND AND ITS INVESTMENTBANKING DEPARTMENT ON THE OTHER HAND WHICH HAS BEEN ON A DRIVE THIS YEAR TO HIRE SEASONED BANKERS MANY OF THOSE HIRED HAVE COME FROM FIRST BOSTON MR PERELLA'S ALMA MATER MORGAN STANLEY COULD USE A SENIOR BANKER BECAUSE IT SUFFERED THE LOSS OF ROBERT GREENHILL WHO BUILT THE FIRM'S MERGERS DEPARTMENT IN THE 1970S AND 1980S BUT DEFECTED THIS SUMMER TO SMITH BARNEY SHEARSON INC ALONG WITH A FEW OTHER SENIOR BANKERS MERRILL AND MORGAN STANLEY ALREADY HAVE HEALTHY BANKING DEPARTMENTS BUT ANOTHER BIDDER FOR MR PERELLA'S TALENTS BEAR STEARNS BEST KNOWN FOR ITS SECURITIES TRADING COULD USE HIM TO LEAD AN UPGRADE OF ITS BANKING DEPARTMENT THE ONE INCENTIVE BEAR STEARNS COULD OFFER IS MONEY ITS TWO TOP EXECUTIVES WERE PAID 159 MILLION EACH IN THE YEAR ENDED JUNE 30 ONE FIRM THAT HASN'T PARTICIPATED IN THE PERELLA AUCTION HAS BEEN FIRST BOSTON NOW KNOWN AS CS FIRST BOSTON INC WHOSE RANKS OF SENIOR BANKERS WERE DEPLETED THIS YEAR WHEN SEVERAL BANKERS LEFT DISSATISFIED WITH THEIR PAY SOME SAY SENIOR EXECUTIVES REMAIN ANGRY THAT MR PERELLA LEFT THE FIRM SO HASTILY IN 1988 9311040073 931104 SOTHEBY'S SELLS TWOTHIRDS OF OFFERINGS AT IMPRESSIONIST MODERN ART AUCTIONS BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AUCTIONEER JOHN MARION PULLED SIXFIGURE CHECKS LIKE TEETH OUT OF ART COLLECTORS LAST NIGHT AT SOTHEBY'S HOLDINGS INC AT THE FIRM'S HUGE FALL AUCTIONS OF IMPRESSIONIST AND MODERN ART ABOUT TWO THIRDS OF THE ARTWORKS SOLD BUT IT WAS ROUGH GOING FOR ALL BUT THE BEST ARTWORKS NONETHELESS THESE SALE RESULTS ALONG WITH AN ENCOURAGING 75SOLD RATE AT THE CHRISTIE'S INTERNATIONAL PLC ART AUCTION TUESDAY EVENING INDICATED A REVERSAL IN THE DOWNWARD SPIRAL IN PRICES OF IMPRESSIONIST AND MODERN ART LAST NIGHT'S AUCTION WAS THE SECOND OF FIVE EVENING SALES IN THE TWOWEEK FALL ARTSALES SEASON THESE SALES SET THE TONE AND PRICES FOR THE BROADER FINE ART MARKET FOR MONTHS TO COME ALEX APSIS HEAD OF SOTHEBY'S NEW YORK'S IMPRESSIONIST AND MODERN PAINTINGS DEPARTMENT SAID THERE WAS A SLOW STEADY INCREASE IN THE NUMBER OF PEOPLE WHO WERE BIDDING AND THE PRICES OBTAINED THE TOTAL FOR THE SALE INCLUDING THE BUYER'S COMMISSION PAID TO SOTHEBY'S WAS 485 MILLION THE SALE WAS EXPECTED TO RAISE ABOUT 56 MILLION TO 78 MILLION IMPRESSIONIST PAINTINGS SOLD MORE EASILY THAN EARLY 20TH CENTURY MODERN ART OF THE 56 ARTWORKS ON THE AUCTION BLOCK 18 OR 32 FAILED TO SELL GENERALLY AN AUCTION WITH A BUYIN RATE OF 30 OR MORE IS CONSIDERED A SIGN OF EITHER A LACKLUSTER MARKET OR UNDISTINGUISHED AUCTION PROPERTY OR BOTH MANY PAINTINGS AND SCULPTURES CHANGED HANDS AT PRICES BELOW THEIR LOW ESTIMATES INDICATING THAT SOTHEBY'S HAD PRESSURED SELLERS TO LOWER THEIR RESERVES THE SECRET MINIMUM PRICE A SELLER WILL ACCEPT THE STAR PAINTING OF THE AUCTION SEASON WAS HENRI MATISSE'S VIBRANT THE WINE PRESS WHICH HAD BEEN FEATURED IN THE LANDMARK MATISSE EXHIBITION THAT TRAVELED TO MUSEUMS IN NEW YORK AND PARIS LAST YEAR AN ALMOST 6FOOT HIGH ARTWORK LOOKING MUCH LIKE A POPART STAINEDGLASS WINDOW WAS EXPECTED TO BRING 10 MILLION OR MORE AFTER A VIGOROUS BIDDING WAR IT SOLD FOR 1375 MILLION TO A SWISS BANK BIDDING ON BEHALF OF A COLLECTOR ALL PRICES INCLUDE SOTHEBY'S COMMISSION WHICH IS 15 ON THE FIRST 50000 OF THE PURCHASE PRICE AND 10 THEREAFTER OTHER BUYERS AT THE SALE INCLUDED BARON HANS HEINRICH THYSSENBORNEMISZA WHO BOUGHT A CAMILLE PISSARRO SCOTT BLACK PRESIDENT OF DELPHI CAPITAL MANAGEMENT OF BOSTON AND DUSSELDORF ART DEALER WOLFGANG WITTROCK A VINCENT VAN GOGH SKETCH BEING SOLD BY THE FORBES MAGAZINE ART COLLECTION EXPECTED TO BRING 200000 TO 300000 SOLD FOR 288500 PIERRE BONNARD'S LE GOUTER OWNED BY THE WIDOW OF PROMINENT COLLECTOR ROBERT LEHMANN SOLD FOR 910000 WITH TWO OUT OF FIVE OF THE BIGMONEY FALL AUCTIONS CONCLUDED THE PRELIMINARY READ ON THE ART MARKET IS IMPROVING BUT FAR FROM ROBUST THE JURY'S STILL OUT UNTIL TONIGHT'S NAILBITING SALE AT SOTHEBY'S WHEN THE AUCTION HOUSE ATTEMPTS TO SELL A BACKBREAKING 88 PABLO PICASSOS IN ONE EVENING THE AUCTION SPANS THE ARTIST'S CAREER FROM 1899 THROUGH 1972 BUT LACKS A PICASSO MASTERPIECE FOCUSING INSTEAD ON 10000 SKETCHES WITH A HANDFUL OF MILLIONDOLLAR PAINTINGS 9311040072 931104 BUSINESS BRIEF HECLA MINING CO ACQUISITION ACCORD REACHED ON BUYING CANADIAN FIRM HECLA MINING CO SAID IT HAS AGREED TO BUY EQUINOX RESOURCES LTD A VANCOUVER CANADA MINING COMPANY FOR ABOUT 57 MILLION SHARES OF HECLA STOCK AT YESTERDAY'S NASDAQ STOCK MARKET CLOSING PRICE OF 10625 A SHARE UP 375 CENTS THE DEAL HAS AN INDICATED VALUE OF ABOUT 606 MILLION HECLA BASED IN COEUR D'ALENE IDAHO SAID IT WILL EXCHANGE 03 SHARES OF HECLA STOCK FOR EACH SHARE OF EQUINOX STOCK THE AGREEMENT IS SUBJECT TO THE SIGNING OF A DEFINITIVE AGREEMENT AND APPROVAL OF EQUINOX SHAREHOLDERS EQUINOX'S PRIMARY ASSET IS A GOLD AND SILVER DEPOSIT IN NEVADA IT ALSO PRODUCES ABOUT 35000 OUNCES OF GOLD A YEAR FROM ITS 50OWNED AMERICAN GIRL MINE IN CALIFORNIA AND HAS SEVERAL EXPLORATION OPERATIONS 9311040071 931104 TEXACO INC'S CHEMICAL UNIT WHITE PLAINS NY TEXACO INC SAID THAT ABOUT 12 OF THE 2200 US EMPLOYEES OF ITS CHEMICAL SUBSIDIARY WILL EITHER RETIRE EARLY OR BE DISMISSED AFTER THE UNIT'S SALE IS COMPLETED IN SEPTEMBER TEXACO AGREED TO SELL SUBSTANTIALLY ALL OF ITS CHEMICAL OPERATIONS FOR 106 BILLION TO A COMPANY JOINTLY CONTROLLED BY CHEMICAL BARON JON HUNTSMAN AND AUSTRALIAN BUSINESSMAN KERRY PACKER A TEXACO SPOKESMAN SAID THAT ABOUT 200 WORKERS HAVE ELECTED TO TAKE EARLY RETIREMENT AND 55 OTHERS WERE NOTIFIED THAT THEY WERE BEING DISMISSED THE SALE IS EXPECTED TO BE COMPLETED BY JAN 1 9311040069 931103 TEXAS JOURNAL WINNERS & LOSERS LONE STAR BEER THE SAN ANTONIO BREW WILL RETURN TO TEXAS OWNERSHIP AFTER DALLASBASED HICKS MUSE COMPLETES A PLANNED ACQUISITION OF CHICAGO'S G HEILEMAN BREWING SOUTH AFRICA THE HOUSTON CITY COUNCIL AGREED TO LIFT TRADE SANCTIONS AGAINST THIS NATION IN RESPONSE TO A UN APPEAL BY NELSON MANDELA INSURERS A STATE JUDGE OVERTURNED A NEW TEXAS RULE THAT WOULD HAVE TOUGHENED A BAN ON DISCRIMINATION IN THE WRITING OF INSURANCE POLICIES CONTINENTAL AIRLINES THE US TRANSPORTATION DEPARTMENT FINED THE HOUSTON AIRLINE 20000 FOR ADVERTISING BARGAIN FARES TO EUROPE WHEN FEW DISCOUNT SEATS WERE ACTUALLY AVAILABLE WEST TEXAS TRUCKERS TEXAS RAILROAD COMMISSION MEMBERS WILL INVESTIGATE WHY DIESEL PRICES ARE AS MUCH AS 23 CENTS A GALLON HIGHER IN WEST TEXAS THAN ELSEWHERE PANTEX A FEDERAL REPORT ALLEGES PLUTONIUMSTORAGE VIOLATIONS AT THIS NUCLEAR WEAPONS DISASSEMBLY PLANT NEAR AMARILLO 9311040068 931104 COMMODITIES WORLD OIL PRICES ARE VOLATILE DESPITE GAINS SLUGGISH DEMAND AND HIGH SUPPLY PLAY A ROLE BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL WORLD OIL PRICES RODE A ROLLER COASTER YESTERDAY BUT SETTLED SHARPLY HIGHER IN MOST CASES ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR DECEMBER DELIVERY ROSE 37 CENTS A BARREL TO SETTLE AT 1749 ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE CRUDE FUTURES WERE UP 31 CENTS TO 35 CENTS A BARREL BUT THESE GAINS CAME ONLY AFTER AN EARLY PLUNGE AND WIDE SWINGS DURING THE DAY THAT TOTALED MORE THAN 80 CENTS A BARREL FOR THE US CRUDE AND AS MUCH AS 72 CENTS IN LONDON FUTURES TRADING TRADERS WERE HARD PUT TO EXPLAIN THE UPSANDDOWNS VOLATILITY EXCEPT TO CITE TECHNICAL FACTORS AND AN OIL MARKET MADE JITTERY BY RECURRING OVERSUPPLY WORRIES BECAUSE OF SLUGGISH DEMAND AND HIGH INVENTORIES NEVERTHELESS PRICES PLUNGED YESTERDAY IN EARLY TRADING IN BOTH THE US AND EUROPE IN THE WAKE OF THE AMERICAN PETROLEUM INSTITUTE'S TUESDAY EVENING REPORT ON US OIL STATISTICS THE API REPORT SHOWED BIG UNEXPECTED INCREASES IN INVENTORIES OF GASOLINE AND DISTILLATE FUELS ALTHOUGH CRUDE OIL STOCKS REMAINED AT REASONABLE LEVELS FOR THIS TIME OF THE YEAR BUT A PRICING REVERSAL BEGAN AFTER TRADERS TOOK A HARDER LOOK AT THE API DATA ALSO THERE WAS A RENEWED FOCUS ON THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES AFTER FRESH ASSESSMENTS PUT ITS OCTOBER PRODUCTION LOWER THAN PREVIOUS ESTIMATES EARLIER ESTIMATES OF OCTOBER OUTPUT FOR OPEC WHICH HAS A PRODUCTION CEILING OF 245 MILLION BARRELS A DAY WERE AS HIGH AS 248 MILLION TO 25 MILLION BARRELS A DAY BUT THE LATEST APPRAISALS RANGED BETWEEN 246 MILLION A DAY AS ESTIMATED BY THE LONDONBASED ENERGY COMPASS AND 247 MILLION A DAY AS REPORTED BY REUTERS SOME ANALYSTS ALSO ARE SUGGESTING OPEC PRODUCED NO MORE THAN 246 MILLION BARRELS A DAY IN OCTOBER WE KNOW IRAN SAUDI ARABIA AND KUWAIT ALL HAVE CUT PRODUCTION IN OCTOBER SAID SHAHROKH NIKKHAH EXECUTIVE VICE PRESIDENT OF REFCO INC NEWS YESTERDAY THAT RUSSIA HAD DISPATCHED NINE MILITARY SHIPS TO SAFEGUARD KEY GEORGIAN PORTS ON THE BLACK SEA COAST ALSO APPEARED TO BE BULLISH FOR THE OIL MARKET STILL DESPITE HEAVY FUTURES TRADING MANY BUYERS OF SOCALLED PHYSICAL BARRELS WEREN'T INVOLVED TRADERS SAID IT ISN'T UNUSUAL FOR PURCHASERS OF CRUDE FOR REFINERS TO STAY ON THE SIDELINES DURING PERIODS OF EXTREME VOLATILITY EVEN SO SEVERAL MAJOR US REFINERS INCREASED THEIR POSTINGS PRICES PAID IN THE FIELD FOR WEST TEXAS INTERMEDIATE THE US BENCHMARK CRUDE BY 50 CENTS A BARREL IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD FUTURES PRICES ROSE LIFTING OTHER PRECIOUS METALS IN THEIR WAKE AMID A FURTHER RISE IN BOND YIELDS BOND YIELDS HAVE BEEN ON THE RISE THIS WEEK ON CONCERNS THAT THE SLUGGISH US ECONOMY IS SHOWING SIGNS OF ACCELERATING AND MAY SOON FACE SOME RENEWED INFLATION PRESSURE GOLD IS A TRADITIONAL HEDGE AGAINST INFLATION ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY CLIMBED 440 TO SETTLE AT 368 AN OUNCE BASICALLY THE MARKET IS STILL IN A BASEBUILDING SESSION IT'S STARTING TO TREND UP AGAIN WITH BUYING ON CONCERN OVER HIGHER INTEREST RATES AND OVER A SLIPPING STOCK MARKET SAID IAN MACDONALD A SENIOR GOLD TRADER WITH CREDIT SUISSE IN NEW YORK SILVER FOR DECEMBER DELIVERY JUMPED 117 CENTS ON THE COMEX TO SETTLE AT 4307 AN OUNCE SILVER A METAL WIDELY USED IN THE PHOTOGRAPHIC AND CONSUMER ELECTRONIC INDUSTRIES TENDS TO BENEFIT FROM SIGNS OF INDUSTRIALLED GROWTH PLATINUM FOR JANUARY DELIVERY ADDED 460 TO 37420 AN OUNCE ON THE NEW YORK MERCANTILE EXCHANGE WHILE DECEMBER PALLADIUM GAINED 95 CENTS TO 12950 AN OUNCE ON THE NEW YORK MERC GRAINS & SOYBEANS PRICES OF SOYBEAN FUTURES CONTRACTS ROSE AMID CONTINUING REPORTS OF POOR QUALITY CROPS BEING HARVESTED IN IOWA AND MINNESOTA THE EXCESSIVE SUMMER RAINS IN THE AREA APPARENTLY REDUCED THE PROTEIN AND OIL CONTENT OF THE SOYBEANS BELOW EXPECTATIONS ANALYSTS SAID THE REPORTS ARE PROMPTING A SCRAMBLE BY SOYBEAN PROCESSING COMPANIES TO ACQUIRE SUPPLIES IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR NOVEMBER DELIVERY ROSE 25 CENTS A BUSHEL TO SETTLE AT 63025 A BUSHEL CORN PRICES SETTLED SLIGHTLY LOWER SOME MAJOR CROP FORECASTING OUTFITS ARE EXPECTED TO LOWER THEIR CORN HARVEST ESTIMATES TODAY AND TOMORROW 9311040067 931104 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO ROBOTS AND ATMS DISBURSE DRUGS TO FREE HOSPITAL PHARMACISTS FOR PATIENT CARE HOSPITALS ARE AUTOMATING THE PROCESS OF DISPENSING DRUGS ALLOWING PHARMACISTS TO SPEND MORE TIME MONITORING PATIENT THERAPY AND TEACHING PATIENTS HOW TO TAKE MEDICATION SAYS DR THOMAS THIELKE OF UNIVERSITY OF WISCONSIN HOSPITAL & CLINICS AT THE MADISON HOSPITAL A 450000 ROBOT PUTS A PATIENT'S DOSAGE IN SMALL BARCODEMARKED DRAWERS THE DRAWERS STORED IN CASES ASSIGNED TO EACH NURSES' STATION ARE DELIVERED BY AUTOMATED CARTS OUR GOAL IS TO RUN THE PHARMACY OPERATION WITH ROBOTS AND TECHNICIANS DR THIELKE SAYS MEANWHILE AT THE UNIVERSITY OF CALIFORNIA SAN DIEGO MEDICAL CENTER NURSES GO TO AN ATMLIKE MACHINE AND PUNCH IN PERSONAL CODES TO GET DRUGS FOR PATIENTS THE COMPUTERCONTROLLED MEDICINE CABINETS WHICH USUALLY LEA MONTH EACH CUT DAILY DELIVERIES TO NURSES' STATIONS THE HOSPITAL SAYS THE SYSTEM FROM PYXIS CORP WILL SAVE IT 100000 ANNUALLY IN PERSONNEL COSTS THE WISCONSIN HOSPITAL SAYS ITS ROBOT MADE BY PITTSBURGH'S AUTOMATED HEALTHCARE WILL SAVE 450000 OVER EIGHT YEARS SPORTS STADIUMS SERVE UP MONEY DISPENSERS FOR CASHSTRAPPED FANS SPORTS ARENAS SPROUT AUTOMATIC TELLER MACHINES FOR THE CONVENIENCE OF FANS AND TO SPUR CONCESSIONSTAND SALES WITH THE RISING COSTS OF GOING TO A BALLGAME STADIUM MANAGERS REALIZE THAT PEOPLE DON'T CARRY THAT KIND OF CASH SAYS CHRIS BIGELOW A MISSOURI CONSULTANT BANK OF AMERICA A PHOENIX SUNS SPONSOR PUT TWO ATMS IN THE AMERICA WEST ARENA NEAR THE TICKET OFFICE AND FOOD COURT ATMS ARE CHEAPER TO INSTALL THAN CREDITCARD SYSTEMS AND UNLIKE CREDIT CARDS THEY DON'T SLOW THE CONCESSION LINE SAYS DEBORAH STEVENS OF THE AMERICA WEST ARENA TO CUT DOWN ON SECURITY COSTS SOME STADIUMS SUCH AS THE JOE ROBBIE STADIUM IN MIAMI HAVE ATMS THAT GIVE OUT VOUCHERS INSTEAD OF CASH THE VOUCHERS PRINTED IN 10 INCREMENTS MUST BE USED ON THE DAY ISSUED AND ARE NONRETURNABLE TO DETER COUNTERFEITERS NATURALGAS RATES MAY TICK UP THIS WINTER DESPITE SOLID SUPPLIES THIS IS THE FIRST HEATING SEASON UNDER RULES MAKING GAS PROCUREMENT PRIMARILY THE RESPONSIBILITY OF LOCAL UTILITIES NOT PIPELINE PROVIDERS AS A RESULT GAS FIRMS ARE MAKING SURE THEY HAVE ADEQUATE SUPPLIES FOR ANY EVENTUALITY SAYS THE AMERICAN GAS ASSOCIATION'S MICHAEL GERMAN THE GROUP EXPECTS AVERAGE HOME RATES TO RISE A BIT BECAUSE THE HUGE GAS OVERSUPPLY IN RECENT YEARS HAS DISAPPEARED PUBLIC SERVICE CO OF COLORADO AND BOSTON GAS CO THIS WEEK RAISED RATES 9 AND 66 RESPECTIVELY NIPSCO INDUSTRIES INC IN INDIANA BRACING FOR A NORMAL COLD WINTER FILED FOR A RATE HIKE OF LESS THAN 1 WHILE PUBLIC SERVICE ELECTRIC & GAS CO NEWARK NJ HAS FILED FOR AN 8 INCREASE MEANWHILE MICHIGAN CONSOLIDATED GAS CO IN DETROIT SAYS IT MAY SEEK AN INCREASE OF NOT MORE THAN 5 IN NEW YORK CONSOLIDATED EDISON SEES ITS GAS COSTS RISING 10 WHILE BROOKLYN UNION GAS EXPECTS A 7 RISE BUT CONSUMERS POWER CO JACKSON MICH PREDICTS LOWER HEATING BILLS FOR CUSTOMERS THE UTILITY SAYS A FOURYEAR CONTRACT REACHED IN 1989 ENABLED IT TO BUY GAS AT PRICES 10 BELOW 1992 LEVELS PLAY PAYS OFF IN JOBS THE WORLD TRAVEL & TOURISM COUNCIL SAYS TOURISM WILL EMPLOY ONE OUT OF EVERY NINE WORKERS WORLDWIDE BY NEXT YEAR UP FROM ONE IN 10 IN 1991 ALL THAT JAZZ IN A NATIONAL PARK TWO SENATE AND HOUSE BILLS CALL FOR THE CREATION OF A JAZZ NATIONAL HISTORICAL PARK AND A TOURIST DRAW IN NEW ORLEANS THE BILLS WOULD SET UP HISTORICAL DISTRICTS RESTORE BUILDINGS CENTRAL TO THE MUSIC'S ORIGINS AND FORM JAZZ CENTERS TO WORK WITH UNIVERSITIES TO STAY FIT EXERCISEEQUIPMENT MAKERS WORK ON NEW DISTRIBUTION OUTLETS IT MAY BE A STRETCH BUT FITNESSMACHINE FIRMS THINK ELECTRONICS STORES ARE A NATURAL FOR THEIR GEAR SOME STORES AGREE THIS FALL TOPS APPLIANCE CITY STARTED FITNESS SECTIONS IN ITS STORES CARRYING EQUIPMENT PRICED FROM 200 TO 3000 FITNESS GEAR WHOSE SALES PEAK IN NOVEMBER TO MARCH COMPLEMENT AIR CONDITIONERS A SUMMER ITEM SAYS TOPS'S PHIL SCHOONOVER TANDY CORP'S THREE INCREDIBLE UNIVERSE STORES BEGAN CARRYING EXERCISE MACHINES IN OCTOBER EXERCISE FIRMS ARE SEEKING OUTLETS BEYOND SPORTS STORES MASS MERCHANDISERS AND INFOMERCIALS AS SALES SLOW FROM A ONCEBREATHLESS PACE RETAIL SALES IN 1992 WERE 205 BILLION UP 72 FROM 1987 BUT DOWN 3 FROM 1991 THE NATIONAL SPORTING GOODS ASSOCIATION SAYS DIVERSIFICATION IS THE MEANS TO MORE INCOME SAYS NORM HULBERT OF BMI A CALIFORNIA FITNESS FIRM THE MACHINES' PROLIFERATING GADGETRY MAKES ELECTRONICS STORES A LOGICAL STEP SAYS AMERICAN SPORTS DATA IN WESTCHESTER COUNTY NY CIRCUIT CITY STORES SAYS IT WEIGHED THE IDEA BUT REJECTED IT FOR NOW BRIEFS BLACK CHILDREN NOW HAVE COSMETICS DESIGNED FOR THEM TINKERBELL NORTHVALE NJ PUTS THE COSMETICS IN PACKAGES FEATURING A RASTAFAIRY FROM WAINWRIGHT INDUSTRIES INC ST LOUIS TOOLANDDIE COMPANY PROTECTO PAGER A FAUX PAGER TO HOLD CONDOMS 9311040066 931104 BUSINESS BRIEF BRISTOLMYERS SQUIBB CO REMINGTON AGREES TO BUY CLAIROL'S APPLIANCE DIVISION SEEKING TO EXPAND ITS PRESENCE IN THE WOMEN'S GROOMINGAPPLIANCE BUSINESS REMINGTON PRODUCTS CO AGREED TO ACQUIRE THE APPLIANCE DIVISION OF BRISTOLMYERS SQUIBB CO'S CLAIROL SUBSIDIARY THE COMPANIES WOULDN'T DISCLOSE THE PRICE BUT RONALD NORDMANN AN ANALYST AT PAINEWEBBER PLACED THE VALUE AT 50 MILLION TO 75 MILLION REMINGTON BEST KNOWN FOR ITS MEN'S SHAVERS IS A PRIVATELY HELD COMPANY BASED IN BRIDGEPORT CONN VICTOR K KIAM II CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF REMINGTON SAID THE DEAL EXPANDS REMINGTON'S LIMITED LINE OF WOMEN'S PERSONALCARE PRODUCTS THE SALE EXPECTED TO CLOSE BEFORE THE END OF THE YEAR DOESN'T INCLUDE ANY MANUFACTURING CAPACITY BECAUSE BRISTOLMYERS CONTRACTS OUT ITS APPLIANCE PRODUCTION SALES OF BRISTOLMYERS'S APPLIANCE DIVISION LAST YEAR WERE ABOUT 95 MILLION DOWN FROM ABOUT 120 MILLION THE PREVIOUS TWO YEARS ACCORDING TO MR NORDMANN BUT MR KIAM SAID SALES IN THE US ARE UP 25 THIS YEAR AND WILL EXCEED 100 MILLION IN 1993 9311040065 931104 CONAGRA SEEKS LAW ON SPRAYING GRAIN SPARKING OBJECTIONS BY US OFFICIALS BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CONAGRA INC IS LOBBYING FOR LEGISLATION THAT WOULD ALLOW IT TO CONTINUE SPRAYING WATER ON GRAIN STORED IN ITS ELEVATORS BUT SOME FEDERAL OFFICIALS SAY SUCH A LAW WOULD UNDERMINE A CRIMINAL PROBE OF THE COMPANY'S GRAINHANDLING UNIT THE JUSTICE AND AGRICULTURE DEPARTMENTS ARE INVESTIGATING WHETHER CONAGRA GRAIN ELEVATORS PAD PROFITS BY EXCESSIVELY DOUSING CROPS AMONG OTHER THINGS ADDING WATER MAKES GRAIN HEAVIER AND THUS MORE VALUABLE BECAUSE GRAIN IS SOLD BY WEIGHT CONAGRA WHICH SAYS ITS ELEVATORS USE WATER ONLY TO SUPPRESS THE DUST THAT CAN TRIGGER EXPLOSIONS IS PRESSING CONGRESS FOR LEGISLATION IT SAYS WOULD ELIMINATE THE POTENTIAL FOR ABUSE AND ALLOW IT TO CONTINUE SPRAYING WATER FOR DUST CONTROL THE LEGISLATION WOULD ALLOW FOR THE CREATION OF A FEEBASED WATER PERMIT SYSTEM WE SEE THIS SOLELY AS A SAFETY ISSUE SAID PAUL A KORODY VICE PRESIDENT OF GOVERNMENT AFFAIRS AT THE OMAHA NEB COMPANY BUT INVESTIGATORS WORRY THAT A PERMIT SYSTEM MIGHT COME IN HANDY FOR CONAGRA IF ANY LITIGATION RESULTS FROM THE PROBE WHICH IS EXPECTED TO LAST SEVERAL MORE MONTHS CONAGRA ATTORNEYS COULD POSSIBLY ARGUE THAT CONGRESS HAS GIVEN WATER A VOTE OF CONFIDENCE IN PRINCIPLE THIS WOULD HAVE A DETRIMENTAL EFFECT ON THE ABILITY TO PROSECUTE SAID KATHLEEN SWEENEY AN ASSISTANT US ATTORNEY IN INDIANAPOLIS WHOSE OFFICE IS OVERSEEING PART OF THE CONAGRA PROBE ACCORDING TO AN AGRICULTURE DEPARTMENT OFFICIAL FAMILIAR WITH THE PROBE INVESTIGATORS BELIEVE THAT EXCESSIVE WATER MIGHT HELP EXPLAIN THE GOVERNMENT'S CALCULATIONS THAT 2 MORE CROPS LEFT ONE CONAGRA ELEVATOR THAN ENTERED IT THE LEGISLATION IS BEING FOUGHT OVER IN A WAY RARELY SEEN IN THE GENTEEL GRAIN INDUSTRY A SENIOR AGRICULTURE DEPARTMENT OFFICIAL THREATENED TO RESIGN UNLESS THE WHITE HOUSE BACKED THE DEPARTMENT'S POSITION THAT WATERSPRAYING SYSTEMS SHOULD BE BANNED AGRICULTURE DEPARTMENT OFFICIALS SAY THEY DON'T HAVE THE WORK FORCE TO REGULATE A WATERPERMIT SYSTEM AND THE INCENTIVE FOR ELEVATORS TO GO BEYOND DUST CONTROL IS TOO STRONG CURRENT FEDERAL LAW FORBIDS THE ADULTERATION OF GRAIN BUT IT DOESN'T MAKE CLEAR WHEN DUST CONTROL ENDS AND ADULTERATION BEGINS BY INCREASING THE MOISTURE LEVEL OF A TYPICAL SHIPLOAD OF SOYBEANS BY ABOUT ONE PERCENTAGE POINT AN ELEVATOR CAN REAP ABOUT AN ADDITIONAL 50000 CONGRESS HELD HEARINGS AFTER A FRONTPAGE WALL STREET JOURNAL ARTICLE JULY 1 DISCLOSED THE SPREADING PRACTICES OF CONAGRA AND OTHER GRAIN COMPANIES TO WATER CROPS THE AGRICULTURE DEPARTMENT'S FEDERAL GRAIN INSPECTION SERVICE IS IN LIMBO BECAUSE THE DEBATE HAS DELAYED ITS REAUTHORIZATION FOR A MONTH THE HOUSE BALKED AT A SENATE REAUTHORIZATION BILL THAT INCLUDED CONAGRA'S PERMIT AMENDMENT THE ISSUE IS COMING TO A HEAD IN CONGRESS WHICH APPEARS TO HAVE BEEN SPOOKED BY THE NOTION THAT THE LEGISLATION MIGHT INFLUENCE THE CONAGRA INVESTIGATIONS SEN THOMAS A DASCHLE D SD WHO COSPONSORED THE REAUTHORIZATION BILL INCLUDED CONAGRA'S PERMIT IDEA AT THE URGING OF CONAGRA'S HOME STATE SENATOR J ROBERT KERREY D NEB NOW MR DASCHLE IS MANEUVERING TO DROP THE IDEAWHICH WOULD CLEAR THE WAY FOR THE PROPOSED BAN BY THE AGRICULTURE DEPARTMENT STILL THE OUTCOME IN CONGRESS ISN'T CLEAR CONAGRA HAS CONSIDERABLE POLITICAL CLOUT THE COMPANY CONTRIBUTED ABOUT 300000 TO RECENT CONGRESSIONAL CAMPAIGNS ACCORDING TO THE CENTER FOR RESPONSIVE POLITICS A NONPROFIT NONPARTISAN RESEARCH GROUP ONE SIGN OF HOW HIGH THE STAKES ARE IS THAT THE NATION'S GIANT GRAIN COMPANIES ARE FIGHTING IN PUBLIC AS A RULE THEY DON'T SPEAK ILL OF EACH OTHER OPENLY ANYWAY YET OFFICIALS OF LOUIS DREYFUS CORP WILTON CONN AND MINNEAPOLISBASED CARGILL INC THE NATION'S LARGEST GRAIN MERCHANDISER HAVE APPEARED AT CONGRESSIONAL HEARINGS TO CONTRADICT CONAGRA AN OCTOBER LETTER BY CARGILL CHAIRMAN WHITNEY MACMILLAN TO E KIKA DE LA GARZA CHAIRMAN OF THE HOUSE AGRICULTURE COMMITTEE BREAKS WITH CUSTOM BY WAGGING A FINGER AT CONAGRA OUR LONG EXPERIENCE PERSUADES US THAT THE PRACTICE IS NOT NECESSARY FOR ANY LEGITIMATE PURPOSE WROTE MR MACMILLAN WE ARE CONVINCED THAT IF PERMITTED THE ADDITION OF WATER TO GRAIN WILL CALL INTO QUESTION THE INTEGRITY OF THE US GRAIN SYSTEM AND ITS REPUTATION FOR GRAIN QUALITY 9311040064 931104 MARKETING & MEDIA ADVERTISING IN SMIRNOFF'S LATEST CAMPAIGN ADS LOOK ABSOLUTLY FAMILIAR BY EBEN SHAPIRO JUST WEEKS AFTER LOSING THE MARKETING RIGHTS TO ABSOLUT VODKA GRAND METROPOLITAN HAS SERVED UP A NEW AD CAMPAIGN FOR ITS SMIRNOFF VODKA THAT IS AN ABSOLUT IMITATION THE MOST STRIKING ASPECT OF THE NEW SMIRNOFF ADS IS A CLOSEUP SHOT OF A DRAMATICALLY LIT BOTTLE OF VODKA LIKEWISE THE ABSOLUT ADS ALSO STAR A BOTTLE OF VODKA THE SMIRNOFF ADS FEATURE A SNAPPY TWOWORD HEADLINE PURE PARTY ABSOLUT ADS ALSO FEATURE SNAPPY TWOWORD HEADLINES SUCH AS ABSOLUT BRAVO MOREOVER THE SMIRNOFF ADS WHICH BEGAN APPEARING LAST WEEK ARE AIMED SQUARELY AT THE TRENDY YOUNG IMBIBERS WHO HAVE MADE ABSOLUT ONE OF THE LIQUOR INDUSTRY'S ONLY GROWTH BRANDS DESPITE THE RATHER OBVIOUS SIMILARITIES BETWEEN THE ADS HEUBLEIN THE GRAND MET UNIT THAT MARKETS SMIRNOFF VEHEMENTLY DENIES IT WAS INSPIRED BY ABSOLUT'S CAMPAIGN ABSOLUTELY NOT SAYS JOHN HAYES PRESIDENT OF LOWE & PARTNERS SMIRNOFF'S NEW AD AGENCY IT ISN'T THE FIRST TIME OTHER VODKA MARKETERS HAVE TRIED TO RIDE ON ABSOLUT'S COATTAILS BROWNFORMAN TRIED TO MARKET ITS ICY VODKA AS AN ABSOLUTE IMPROVEMENT BEFORE IT WAS SUED BY ABSOLUT AND WITHDREW THE AD AND EXECUTIVES AT ABSOLUT'S AD AGENCY TBWA ADVERTISING ACCUSE RUSSIAN VODKA STOLICHNAYA OF SLAVISHLY MIMICKING THEIR APPROACH LIKE ABSOLUT THE RUSSIAN VODKA'S ADS FEATURE THE BOTTLE AND TRY TO CREATE A HIP IMAGE BY ENGAGING IN CLEVER WORDPLAY SUCH AS THE STOLAR SYSTEM IT'S SUCH AN OBVIOUS ABSOLUT WANNABE SAYS DICK COSTELLO PRESIDENT OF OMNICOM GROUP'S TBWA AS SOON AS YOU TRY TO BE HIP AND TRENDY YOU CAN'T BE MONSIEUR HENRI WINES THE US IMPORTER OF STOLI RECENTLY DROPPED THE AGENCY THAT CREATED THE STOLAR SYSTEM ADS ALTHOUGH A SPOKESMAN SAYS CREATIVITY WASN'T THE REASON MR COSTELLO WHO HASN'T SEEN THE SMIRNOFF ADS AND OTHER LIQUOR EXPERTS SAY HEUBLEIN IS TAKING A RISKY APPROACH IN COPYING ABSOLUT WHEN THE BIG GUY STAKES OUT HIS TURF YOU HAVE TO PLAY AROUND IT HE SAYS IF YOU PLAY IN THE SAME TURF YOU RISK BECOMING INVISIBLE SMIRNOFF'S NEW CAMPAIGN IS PART OF AN EXPENSIVE ATTEMPT TO RECAST ITS HUMDRUM IMAGE THE RESTAGING OF SMIRNOFF ALSO COMES AS GRAND MET IS TRYING TO MAKE UP THE VOLUME IT STANDS TO LOSE WHEN SEAGRAM TAKES OVER ABSOLUT'S MARKETING RIGHTS NEXT YEAR IT IS EASY TO SEE WHY MARKETERS ARE EAGER TO TRADE OFF ABSOLUT'S SUCCESS ABSOLUT IN THE PAST DECADE HAS BECOME THE THIRD BESTSELLING VODKA IN THE US WITH SALES OF 28 MILLION CASES LAST YEAR WHILE SMIRNOFF REMAINS THE NO 1 VODKA IN THE US WITH 1992 SALES OF SIX MILLION CASES ITS SALES HAVE FALLEN FROM 75 MILLION CASES IN 1980 ACCORDING TO M SHANKEN COMMUNICATIONS WHICH PUBLISHES SPIRITSINDUSTRY TRADE MAGAZINES WHILE DENYING THEY ARE COPYING ABSOLUT HEUBLEIN EXECUTIVES OPENLY ACKNOWLEDGE THEY ARE SHIFTING THEIR APPROACH AND ACTIVELY COURTING THE 25 TO 34YEAROLD DRINKERS WHO DOWN LARGE VOLUMES OF ABSOLUT WE WANT TO MAKE THE SMIRNOFF IMAGE LESS STODGY LESS OF MY FATHER'S VODKA SAYS STEVE SAVINO MARKETING DIRECTOR OF SMIRNOFF WE HAD TO BE MORE CONTEMPORARY WE HAD TO BE MORE HIP WE HAD TO CONVEY A MORE PREMIUM IMAGE FOR THE BRAND TO SHOW OFF ITS NEW HIPNESS HEUBLEIN IS EXPECTED TO MORE THAN DOUBLE ITS 1992 AD BUDGET TO ABOUT 12 MILLION THAT WILL MAKE SMIRNOFF THE ONLY LIQUOR BRAND TO RIVAL ABSOLUT WHICH SPENT 15 MILLION LAST YEAR ACCORDING TO COMPETITIVE MEDIA REPORTING INC SMIRNOFF HAS BEEN STRUGGLING TO ESTABLISH A FRESH IDENTITY FOR SOME TIME AND ITS LATEST INCARNATION IS A PRONOUNCED REJECTION OF ITS MOST RECENT IMAGE IN 1991 SMIRNOFF EMBARKED ON AN EXPENSIVE CAMPAIGN TO ESTABLISH THE VODKA AS A DRINK TO BE ENJOYED AT THANKSGIVING AND OTHER FAMILY GATHERINGS THE ADS WERE PULLED EARLIER THIS YEAR AND LAST MONTH HEUBLEIN DROPPED INTERPUBLIC GROUP'S MCCANNERICKSON THE AGENCY THAT CREATED THE HOME AND HEARTH ADS AND SWITCHED ITS ACCOUNT TO MCCANN'S SISTER AGENCY LOWE & PARTNERS THE NEW ADS ARE SCHEDULED TO RUN IN ENTERTAINMENT WEEKLY PLAYBOY ROLLING STONE SPIN AND SPORTS ILLUSTRATED HEUBLEIN EXECUTIVES SAY THE ADS ARE DESIGNED TO SHOW THE TRANSFORMING POWERS OF A BOTTLE OF SMIRNOFF ONE EXECUTION UNDER CONSIDERATION IS PURE COOL WHICH DEPICTS ONE OF THE EASTER ISLAND STATUES ENCASED IN A SMIRNOFF BOTTLE WEARING A BANDANA AND SUNGLASSES AND LISTENING TO HEADPHONES PURE STANDOUT FEATURES THE BOTTLE AND A PENGUIN IN A TUXEDO LOWE HAS CREATED SIMILAR ADS FOR SMIRNOFF OVERSEAS FOR THE PAST FEW YEARS LIQUOR INDUSTRY EXPERTS HAVE EXPECTED GRAND MET TO LAUNCH A POINTED ATTACK ON ABSOLUT SINCE LAST MONTH WHEN SEAGRAM WAS AWARDED THE GLOBAL MARKETING RIGHTS TO ABSOLUT BEGINNING NEXT YEAR VIN & SPRIT AB SWEDEN'S STATEOWNED LIQUOR COMPANY THAT OWNS ABSOLUT WAS CONCERNED THAT GRAND MET WOULD HAVE A CONFLICT MARKETING ITS SMIRNOFF AND V&S'S ABSOLUT ON A GLOBAL BASIS ABSOLUT IS MAINLY A US BRAND BUT V&S WANTS TO TRY TO DUPLICATE THE BRAND'S US SUCCESS IN OTHER COUNTRIES GRAND MET WAS STUNG BY THE SURPRISE LOSS OF THE BRAND AND IS EAGER TO REPLACE THE VOLUME AND PROFITS GENERATED BY ABSOLUT SO ANALYSTS SAY IT MAKES SENSE FOR SMIRNOFF TO MAKE A NEW ASSAULT ON ABSOLUT WITHOUT ABSOLUT IN THE WAY IT GIVES THEM A LITTLE MORE LEEWAY SAYS FRANK WALTERS DIRECTOR OF RESEARCH FOR M SHANKEN BUT GRAND MET'S HEUBLEIN SAYS THE NEW CAMPAIGN WOULD HAVE BEEN LAUNCHED EVEN IF IT HAD HELD ON TO ABSOLUT AT LEAST ONE GRAND MET EXECUTIVE ISN'T SURPRISED THAT SMIRNOFF IS TAKING A CUE FROM ABSOLUT ADS MICHEL ROUX THE GRAND MET EXECUTIVE CREDITED WITH MAKING ABSOLUT SUCH A SMASH HIT SAYS SMIRNOFF'S PAST EFFORTS HAVE BEEN PRETTY DULL OF THE NEW ADS HE SAYS IT'S A STEP IN THE RIGHT DIRECTION THE TORTUROUS TWOYEAR NEGOTIATIONS FOR THE ACQUISITION OF WPP GROUP'S SCALI MCCABE SLOVES BY INTERPUBLIC GROUP'S LOWE GROUP APPEAR FINALLY TO HAVE COME TO A CLOSE DETAILS OF THE FINAL TRANSACTION WHICH EXECUTIVES SAID WAS SIGNED LATE YESTERDAY COULDN'T BE DETERMINED BUT OFFICIALS CLOSE TO THE TALKS SAID INTERPUBLIC AGREED TO PAY BETWEEN 50 MILLION AND 55 MILLION FOR SCALI INCLUDING AN IMMEDIATE CASH PAYMENT OF ABOUT 30 MILLION AND ASSUMPTION OF ABOUT 20 MILLION TO 25 MILLION OF SCALI DEBT WPP'S CHIEF EXECUTIVE OFFICER MARTIN SORRELL COULDN'T BE REACHED LATE YESTERDAY FOR COMMENT NOR COULD INTERPUBLIC GROUP CHAIRMAN PHILIP GEIER SCALI'S FLAGSHIP NEW YORK OFFICE IS TO BE MERGED WITH LOWE & PARTNERS THE FLAGSHIP OFFICE OF LOWE GROUP TO FORM A NEW AGENCY LOWE & PARTNERS SMS LOWE'S PLANS FOR SCALI'S OTHER OPERATIONS INCLUDING THE MARTIN AGENCY IN RICHMOND VA COULDN'T BE DETERMINED AFTER THE ACQUISITION OF SCALI A 550 MILLION AGENCY WORLDWIDE LOWE GROUP IS EXPECTED TO BILL 26 BILLION WORLDWIDE AS PREVIOUSLY REPORTED FRANK LOWE IS TO REMAIN CHAIRMAN ALSO RETAINING THEIR TITLES ARE LOWE & PARTNERS CHIEF EXECUTIVE ANDREW LANGER PRESIDENT JOHN HAYES AND VICE CHAIRMAN AND CHIEF CREATIVE OFFICER LEE GARFINKEL MARVIN SLOVES SCALI CHAIRMAN AND CHIEF EXECUTIVE WILL BE VICE CHAIRMAN OF THE NEW AGENCY SCALI PRESIDENT AND CREATIVE DIRECTOR SAM SCALI WILL BE DEPUTY CHAIRMAN OF THE NEW AGENCY SEARS ROEBUCK & CO'S MERCHANDISE GROUP AND KING WORLD PRODUCTIONS INC SAID THEY REACHED AN AGREEMENT TO CREATE INFOMERCIALS OFFERING SEARS MERCHANDISE TO TELEVISION VIEWERS THE FIRST 30MINUTE INFOMERCIAL FEATURING A NEW KENMORE VACUUM CLEANER IS EXPECTED TO AIR EARLY NEXT YEAR SAID BURL HECHTMAN PRESIDENT OF KING WORLD DIRECT A NEW UNIT OF KING WORLD PRODUCTIONS THE COMPANIES INTEND TO PRODUCE SEVERAL MORE INFOMERCIALS NEXT YEAR HE SAID KING WORLD IS HANDLING PRODUCTION ORDER FULFILLMENT AND MEDIA ASPECTS OF THE INFOMERCIALS IN EXCHANGE KING WORLD GETS A SHARE OF THE PROFITS FROM SALES OF FEATURED PRODUCTS MR HECHTMAN SAID THE SPOTS WON'T FEATURE MERCHANDISE CURRENTLY AVAILABLE IN SEARS'S RETAIL STORES SEARS SAID ALTHOUGH NEW PRODUCTS INTRODUCED IN THE INFOMERCIALS MIGHT LATER MOVE TO SEARS STORE SHELVES KING WORLD SYNDICATES A NUMBER OF TV SHOWS INCLUDING WHEEL OF FORTUNE JEOPARDY AND THE OPRAH WINFREY SHOW FINALISTS FOUR NEW YORK AGENCIES MADE THE CUT IN PEPSICO'S SEARCH FOR AN AD AGENCY FOR STOLICHNAYA VODKA AND OTHER BRANDS IMPORTED BY MONSIEUR HENRI WINES THE CONTENDERS ARE WEISS WHITTEN STAGLIANO RINEY/ANGOTTI THOMAS HEDGE MARGEOTES FERTITTA & WEISS AND LORD DENTSU & PARTNERS A JOINT VENTURE OF DENTSU AND YOUNG & RUBICAM PEPSICO SAID A DECISION IS EXPECTED IN JANUARY 9311040063 931104 DEMOCRATS FACE RUNOFF IN ATLANTA MAYORAL RACE ATLANTA CITY COUNCIL MEMBER BILL CAMPBELL FELL SHORT OF A MAJORITY OF VOTES IN THIS CITY'S MAYORAL RACE SETTING UP A RUNOFF ELECTION FOR NOV 23 MR CAMPBELL WON ABOUT 49 OF THE VOTES AND WILL FACE FELLOW DEMOCRAT MICHAEL LOMAX CHAIRMAN OF THE FULTON COUNTY COMMISSION IN THE RUNOFF MR LOMAX WON 23 OF THE VOTES THE THIRD MAJOR CONTESTANT MYRTLE DAVIS ALSO A CITY COUNCIL MEMBER WON ABOUT 16 OF THE VOTES INCUMBENT MAYOR MAYNARD JACKSON DIDN'T SEEK REELECTION CITING HEALTH PROBLEMS THAT LEFT A FIELD OF RELATIVELY UNKNOWN CANDIDATES TO SEEK THE POST THE ABSENCE OF A DOMINANT CANDIDATE IS UNUSUAL IN ATLANTA WHICH FOR 20 YEARS HAS BEEN LED BY TWO PROMINENT EXPERIENCED POLITICIANS MR JACKSON AND ANDREW YOUNG FORMER US AMBASSADOR TO THE UNITED NATIONS THE NEXT MAYOR WILL HEAD THE NINTHPOOREST CITY IN THE COUNTRY WHERE URBAN DECAY HAS PROMPTED THOUSANDS OF CITY DWELLERS TO FLEE TO THE SUBURBS SHRINKING THE CITY TAX BASE THE NEW MAYOR ALSO FACES THE MAMMOTH TASK OF PREPARING FOR THE 1996 SUMMER OLYMPICS ATLANTA MUST FIND TENS OF MILLIONS OF DOLLARS TO PAY FOR NEW PARKS STREETS AND BRIDGES AMONG OTHER THINGS BEFORE THE GAMES BEGIN 9311040062 931104 LEISURE & ARTS PACINO IN DE PALMA'S CARLITO'S WAY' BY RAYMOND SOKOLOV THE GUN POINTS RIGHT AT YOU AND THEN THE WORLD BEGINS TO TURN AROUND SLOWLY ALL BLACK AND WHITE OF COURSE YOU KNOW YOU HAVEN'T BEEN SHOT THIS IS BRIAN DE PALMA'S LATEST MOVIE CARLITO'S WAY AND IT STARS AL PACINO AS A PUERTO RICAN HEROIN MAGNATE IN EAST HARLEM YOU KNEW ALL THAT COMING IN A FEW MORE SECONDS INTO THE BAROQUE WHIRLING PRETITLE SEQUENCE THE VOICE AND THE FACE OF THE STAR MAKE IT CLEAR THAT YOU ARE WITNESSING THE LAST MOMENTS OF THE LIFE OF CARLITO/PACINO HE IS ON A STRETCHER NOW WITH AN IV TUBE IN HIM THE CAMERA SHOWS HIS POINT OF VIEW IN FLUID PANS THAT MIMIC EYE MOVEMENT AND KEEP FOCUSING ON THE CEILING OF WHAT TURNS OUT TO BE THE LOWER LEVEL OF GRAND CENTRAL STATION THE STAR/VICTIM LOOKS AT THAT CEILING AND SEES A PERPENDICULAR PATTERN OF FLUORESCENT LIGHTS A CROSS THAT'S YOUR INTERPRETATION MR DE PALMA HAS TEASED YOU WITH THE POSSIBILITY BUT HE HASN'T REALLY CRAMMED IT DOWN YOUR THROAT AND JUST AS YOU WERE WONDERING ABOUT THAT HE GIVES THE SCENE A LITTLE COLOR POOR CARLITO GLIMPSES A TRAVEL POSTER AND IT FILLS THE FRAME AN ORANGERED BLOODRED SCENE OF PARADISE THE POSTER'S NAME FOR THE BAHAMAS MOST OF WHAT HAPPENS NEXT IS PRETTY CONVENTIONAL STUFF FOR MOVIES NOW I MEAN IF YOU WERE TO READ THE SCREENPLAY BY DAVID KOEPP JURASSIC PARK OR SOME SUMMARY OF IT IN A REVIEW YOU MIGHT THINK THAT THIS WAS JUST ANOTHER MOVIE IN WHICH A BAD GUY TRIES TO GO STRAIGHT BUT CAN'T AVOID GETTING SUCKED BACK INTO THE SEWER HE CAME FROM BUT THE MOVIES ARE REALLY NEVER THE PRODUCT OF THEIR SCRIPTS A TRUTH WELLKNOWN TO CINEMOGULS AND NEVER ADMITTED BY THE SCREENWRITERS WHO DO MOST OF THE WRITING ABOUT THE FILMMAKING PROCESS AND GOOD OR GREAT MOVIES ALWAYS RISE ABOVE THEIR SCENARIOS MR DE PALMA WHO IS A VERY SERIOUS STUDENT OF THE HISTORY OF HIS ART MAY HAVE FORGOTTEN THIS TO HIS PERIL WHEN HE WENT HOLLYWOOD WITH THE TEDIOUS BLOATED BONFIRE OF THE VANITIES THAT TRIED SO HARD TO MAKE HAY OUT OF THE TOM WOLFE BESTSELLER BUT NOW HE HAS GOT HIS GRIP BACK ESPECIALLY IN THE FIRST 15 MINUTES AS THE SCREEN GOES TO BIGCITY BRIGHT LIGHTS IN THE BARRIO WHERE CARLITO ONCE WAS THE NUYORICAN KING OF SMACK MR DE PALMA PUTS A GARISH WORLD IN YOUR FACE HE DOES IT MOSTLY WITH TROPICAL COLORS THAT DIM TO A SINISTER SPOILEDMANGO HUE INDOORS IN THE MANGY BACKROOM BILLIARD JOINT WHERE A DRUG DEAL GOES SOUR OR IN THE STROBING HIGHGLOSS SALSA CLUB WHERE CARLITO VAINLY TRIES TO EARN A STAKE FOR A LEGIT RENTACAR LOT IN MIAMI IT'S NOT THAT YOU CAN'T GET CAUGHT UP IN CARLITO'S HOPELESS STRIVING TO GET OUT OF HIS OLD LIFE AND SETTLE IN PARADISE WITH HIS ANGLO GIRLFRIEND GAIL PENELOPE ANN MILLER YES IT IS ALL IMPROBABLE FROM THE START AFTER ALL CARLITO COMMITS MULTIPLE MURDERS BEFORE YOU'VE FOLDED YOUR COAT ON YOUR LAP IN AN ACTION SCENE THAT RIVALS THE BEST GANGLAND SHOOTEMUPS OF CINEMA HISTORY AND GAIL IS NO ANGEL ACTUALLY SHE MAKES A LIVING AS A TOPLESS DANCER IN MIDTOWN STILL THIS STORY DOES ZIP ALONG FAST ENOUGH SO YOU DON'T REALLY MIND THAT JUST ABOUT EVERYONE IN IT IS BEHAVING STUPIDLY FROM HONORBOUND CARLITO TO THE VARIOUS HOODS LATINO AND ITALIAN WHO BUZZ AROUND HIM AND EVENTUALLY MOVE IN FOR THE FATAL STING WHAT REALLY DRAWS YOU IN HOWEVER IS MR DE PALMA'S AND HIS CINEMATOGRAPHER STEPHEN H BURUM'S AND HIS DESIGNER RICHARD SYLBERT'S SKILL AT BRINGING A BRASH NOISY WORLD TO THE SCREEN IF YOU WANT TO SEE EXACTLY HOW GOOD THEY ARE AT SHOWING THE BEAUTIFULLY BAD UPTOWN LATINO SCENE COMPARE THE NIGHTCLUB FOOTAGE HERE WITH THE LEFTFOOTED PHONINESS OF ANOTHER RECENT MOVIE ABOUT THE SAME PHENOMENON THE MAMBO KINGS PERHAPS THE GREATER DEPTH AND STRENGTH IN THIS PICTURE DEPENDS SOMEWHAT ON THE WILDER MORE DANGEROUS TURN THAT THE SALSA SCENE HAS TAKEN IN THE AGE OF COCAINE AND MASSIVE IMMIGRATION FROM THE ISLANDS TO NEW YORK BUT I BELIEVE THAT MOST OF THE JOLT THAT DE PALMA DELIVERS IS AN ESTHETIC PUNCH WHILE THE OSTENSIBLE STORY STRINGS YOU ALONG THE DIRECTOR KEEPS YOUR EYES PEELED WITH SUDDEN SHIFTS OF LIGHT AND DARK FROM THE MURK OF THE CLUB TO THE WHITEOUT OF A BEACH PARTY WHITE SAND WHITE HOUSE WHITE COCAINE WHITE LIGHT BY CONTRAST THERE ARE NIGHT SCENES SO DARK YOU CAN BARELY SEE WHAT HAPPENS THE SAME BIPOLAR PALETTE COLORS THE MOVIE IN SMALLER DETAILS TOO THE BEAUTIFUL BLACK BIMBO STEFFIE INGRID ROGERS IS A VISION IN WHITE A TARNISHED VISION SHOT FROM OVERHEAD COUPLING IN A TOILET WITH CARLITO'S JEWISH LAWYER KLEINFELD SEAN PENN YES SEAN PENN FORMER MR MADONNA FORMER TEEN PUNK IS HERE HANDED A ROLE OF PURE CARDBOARD THE LITTLE GUY WANNABE HOOD WHO SNORTS HIS WAY TO OBLIVION AND DRAGS CARLITO WITH HIM BUT MR PENN ENDS UP STEALING THE FILM FROM MR PACINO WHO NEVER QUITE THROWS OFF THE TRAILING MAFIOSO TRACES LEFT FROM EARLIER FILMS HIS NUYORICAN ACCENT MELTS AWAY LIKE MASCARA HIS MORAL FIGHT IS NEVER CONVINCING ESPECIALLY WHEN SET AGAINST MR PENN'S SUICIDAL STRUTTING CRAZINESS HERE IS A PERFORMANCE SO COMPLETELY SUCCESSFUL THAT EVERYONE I SAT WITH IMMEDIATELY FORGOT IT WAS A STAR CALLED PENN IN THE ROLE WE ALL LOOKED IN EMBARRASSED SURPRISE AS THE FINAL CREDITS CAME UP AND REMINDED US THAT KLEINFELD HAD BEEN AN IMAGINARY CHARACTER PLAYED BY A FAMOUS ACTOR WE HAD COME TO THE THEATER FULLY EXPECTING TO SEE IN THIS MOVIE MS MILLER IS ALSO BETTER THAN HER PART CONVINCING YOU SHE'S DAMAGED GOODS WORTH TAKING HOME WITH LINES ONLY THE MOST INTELLIGENT SEX GODDESS OF HER TIME COULD SAVE FROM SOUNDING RIDICULOUS WHEN THE SCREEN GOES TO BLACK AND WHITE AGAIN AT THE END AND REPEATS THE OPENING SEQUENCE SHE IS THERE AS A HEROINE AND IMAGE OF FEMININITY BROWN AROUND THE EDGES THE CAMERA DOES ITS BACKFLIP AGAIN THE POSTER FLAMES RED PARADISE SEE RELATED ARTICLE LEISURE & ARTS ON FILM CLINTON'S WAR ROOM' EMPIRE'S REMAINS' WSJ NOV 4 1993 9311040061 931104 BUSINESS BRIEF SNAPPLE BEVERAGE CORP EARNINGS MORE THAN TRIPLED ON 3RDQUARTER SALES SURGE SNAPPLE BEVERAGE CORP REPORTED A SHARP INCREASE IN THIRDQUARTER NET INCOME REVENUE AND CASE SALES THE VALLEY STREAM NY COMPANY POSTED PROFIT OF 269 MILLION OR 22 CENTS A SHARE MORE THAN TRIPLE PRO FORMA NET INCOME OF 78 MILLION OR SIX CENTS A SHARE A YEAR EARLIER THE PRO FORMA FIGURES REFLECT THE EFFECTS OF SEVERAL TRANSACTIONS INCLUDING A DECEMBER 1992 EQUITY OFFERING AND THE JUNE 1993 ACQUISITION OF MR NATURAL INC AS IF THEY OCCURRED ON JAN 1 1992 REVENUE IN THE QUARTER MORE THAN DOUBLED TO 20248 MILLION SALES VOLUME IN THE QUARTER TOTALED 216 MILLION CASES MORE THAN DOUBLE THE 94 MILLION CASES A YEAR EARLIER IN NASDAQ STOCK MARKET TRADING SNAPPLE SHARES ROSE 1625 OR 71 TO CLOSE AT 24625 9311040060 931104 INTEGRATED CIRCUIT CHANGES BOARD VALLEY FORGE PA INTEGRATED CIRCUIT SYSTEMS INC SAID IT RESTRUCTURED ITS BOARD RESULTING IN THE DEPARTURE OF THREE DIRECTORS AND THE ADDITION OF A NEW MEMBER REDUCING THE BOARD'S SIZE TO SIX MEMBERS FROM EIGHT THE CHANGE SHIFTS THE BOARD TO A COMPOSITION PRIMARILY OF OUTSIDE DIRECTORS PROVIDING A BROADER RANGE OF EXPERIENCE THE SEMICONDUCTORPRODUCTS MAKER SAID PARTING DIRECTORS INCLUDE VICE CHAIRMAN MARK GUIDRY JAMES DONAGHY WHO CONTINUES AS VICE PRESIDENT NEW BUSINESS AND JERE HOHMANN VICE PRESIDENT RESEARCH AND DEVELOPMENT THE NEW DIRECTOR IS STAVRO PRODROMOU CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER AT PALO ALTO DIGITAL SYSTEMS CORP AN ELECTRONICSEQUIPMENT PRODUCER 9311040059 931104 NUMBER OF VISITORS FELL IN AUGUST FLORIDA SAYS TALLAHASSEE FLA THE NUMBER OF VISITORS TO FLORIDA FELL 12 IN AUGUST FROM A YEAR EARLIER REFLECTING IN PART FEARS OF CRIMES AGAINST TOURISTS FIGURES RELEASED YESTERDAY BY STATE TOURISM OFFICIALS SHOWED THAT ABOUT 32 MILLION PEOPLE VISITED FLORIDA IN AUGUST DOWN ABOUT 450000 FROM A YEAR EARLIER TAXABLE SALES FOR TOURISM AND RECREATION FELL ABOUT 23 FROM A YEAR EARLIER TO 235 BILLION THE DROPOFFS BROKE A 13MONTH STRING OF INCREASES IN VISITS TO THE STATE OVERALL HOWEVER THE NUMBER OF TOURISTS IN 1993 IS RUNNING 23 AHEAD OF THE FIRST EIGHT MONTHS OF 1992 TOURISM OFFICIALS CITED SEVERAL REASONS FOR THE DECLINES IN AUGUST INCLUDING INCREASED COMPETITION FROM OTHER TOURIST DESTINATIONS HIGHER AIR FARES AND A STRONGER DOLLAR BUT THEY ALSO ACKNOWLEDGED THAT THE HIGHLY PUBLICIZED MURDERS OF SEVERAL TOURISTS PLAYED A PART THAT'S GOT TO BE A FACTOR SAID A STATE TOURISM SPOKESMAN WE JUST DON'T KNOW TO WHAT EXTENT NINE TOURISTS HAVE BEEN KILLED IN FLORIDA IN THE PAST YEAR SEVEN OF THOSE OCCURRED PRIOR TO AUGUST TWO OCCURRED IN SEPTEMBER STATE OFFICIALS SAID THEY ARE STILL COMPILING DATA ON SEPTEMBER VISITS AND COULDN'T ESTIMATE WHAT EFFECT IF ANY THE SEPTEMBER SLAYINGS MIGHT HAVE HAD ON TRAVEL 9311040058 931104 TECHNOLOGY BRIEF GLAXO HOLDINGS PLC AIDS TREATMENT IS CLEARED FOR LIMITED ACCESS IN US THE EXPERIMENTAL AIDS DRUG 3TC IS BEING MADE AVAILABLE IN THE US FOR TREATMENT OF CERTAIN PATIENTS WHO HAVE EXHAUSTED ALL OTHER OPTIONS THE COMPANIES DEVELOPING THE DRUG SAID A SPOKESWOMAN FOR GLAXO HOLDINGS PLC'S US UNIT SAID AN OPENLABEL PROTOCOL SUBMITTED TO THE FOOD AND DRUG ADMINISTRATION LATE LAST WEEK ENABLES THE COMPANY TO PROVIDE 3TC FOR SOME PATIENTS WHO DON'T QUALIFY TO PARTICIPATE IN CONTINUING CLINICAL TRIALS THE PROTOCOL TAKES EFFECT IMMEDIATELY CANADA LAST MONTH BECAME THE FIRST COUNTRY TO CLEAR 3TC FOR SUCH USE THE DRUG IS BEING TESTED IN NORTH AMERICA AND EUROPE FOR EFFICACY IN PEOPLE INFECTED WITH HUMAN IMMUNODEFICIENCY VIRUS WHICH CAUSES AIDS GLAXO A BRITISH CONCERN IS DEVELOPING THE DRUG UNDER AN AGREEMENT WITH BIOCHEM PHARMA INC MONTREAL WHICH FIRST PRODUCED IT 9311040057 931104 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 ABBEY HEALTHCARE GROUP INC 200 MILLION OF SENIOR SUBORDINATED NOTES DUE NOV 1 2002 PRICED AT PAR TO YIELD 95 THE NOTES WHICH ARE NONCALLABLE FOR FIVE YEARS WERE RATED SINGLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP ALCAN ALUMINIUM LTD 150 MILLION OF NOTES DUE APRIL 1 2000 PRICED AS 5875S AT 99385 TO YIELD 5991 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 78 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF DEBENTURES DUE NOV 15 1996 PRICED AT PAR TO YIELD 4625 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES WHICH ARE NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 20 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO NATIONAL BANK OF HUNGARY 200 MILLION OF BONDS DUE NOV 1 2013 PRICED AT PAR TO YIELD 8875 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 255 BASIS POINTS ABOVE TREASURYS RATED BA1 BY MOODY'S AND DOUBLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO PNC BANK NA 500 MILLION OF SHORTTERM BANK NOTES DUE NOV 10 1994 PRICED AT PAR TO YIELD 365 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 12 BASIS POINTS ABOVE TREASURY BILLS RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO PNC IS A UNIT OF PNC BANK CORP SOUTHERN CALIFORNIA GAS CO 175 MILLION OF FIRST MORTGAGE BONDS DUE NOV 1 2025 PRICED AS 6875S AT 97045 TO YIELD 711 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 78 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC SOUTHERN CALIFORNIA GAS IS A UNIT OF PACIFIC ENTERPRISES STUDENT LOAN MARKETING ASSOCIATION 700 MILLION OF FLOATINGRATE NOTES DUE NOV 10 1998 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES WHICH ARE NONCALLABLE FOR ONE YEAR WILL PAY QUARTERLY AND FLOAT WEEKLY AT 19 BASIS POINTS ABOVE THREEMONTH TREASURY BILLS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC LOUISIANA LAND & EXPLORATION CO 44 MILLION COMMON SHARES SOLD FOR 44625 APIECE ACCORDING TO THE COMPANY TRANSCO ENERGY CO 25 MILLION OF CONVERTIBLE PREFERRED STOCK SOLD FOR 125 MILLION THROUGH UNDERWRITER MERRILL LYNCH & CO ACCORDING TO THE COMPANY THE STOCK REDEEMABLE AT THE COMPANY'S OPTION IN 1999 HAS A DIVIDEND RATE OF 7 AND IS CONVERTIBLE TO TRANSCO COMMON STOCK AT 20 A SHARE CBL & ASSOCIATES PROPERTIES INC INITIAL PUBLIC OFFERING OF 154 MILLION SHARES COMPLETED AT 1950 A SHARE ACCORDING TO THE COMPANY LAFAYETTE PUBLIC POWER AUTHORITY LOUISIANA 1134 MILLION SERIES 1993 ELECTRIC REVENUE REFUNDING BONDS PRICED BY A SMITH BARNEY SHEARSON INC GROUP YIELDS RANGE FROM 28 IN 1994 TO 545 IN 2012 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P MICHIGAN STATE HOSPITAL FINANCE AUTHORITY 149 MILLION 1993 SERIES P HOSPITAL REVENUE REFUNDING BONDS FOR THE SISTERS OF MERCY HEALTH CORP OBLIGATED GROUP PRICED BY UNDERWRITERS LED BY GOLDMAN SACHS & CO YIELDS RANGE FROM 3 IN 1994 TO 5625 FOR BONDS DUE IN 2021 BONDS DUE IN 199496 ARE UNINSURED AND HAVE SINGLEA RATINGS FROM BOTH MOODY'S AND FITCH INVESTORS SERVICE INC S&P HAS RATED THE BONDS SINGLEAMINUS THE MUNICIPAL BONDS INVESTORS ASSURANCE CORP IS INSURING BONDS DUE IN 19972007 2013 AND 2021 THOSE SECURITIES CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P UNIVERSITY OF CALIFORNIA 1871 MILLION 1993 CERTIFICATES OF PARTICIPATION APPARENTLY WON BY A BANK OF AMERICA GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 55745 YIELDS RANGE FROM 32 IN 1995 TO 565 IN 2020 THE BONDS HAVE BEEN RATED DOUBLEA BY MOODY'S FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1643 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 72 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1644 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 355 MONTHS CORESTATES BANK NA 150 MILLION OF HOMEEQUITYLOAN ASSETBACKED CERTIFICATES PRICED IN TWO PARTS BY UNDERWRITERS LED BY CS FIRST BOSTON INC THE ISSUE CORESTATES HOME EQUITY LOAN TRUST 19932 IS BACKED BY LOANS ORIGINATED BY CORESTATES BANK HAMILTON BANK AND NEW JERSEY NATIONAL BANK CORESTATES BANK WILL SERVICE THE LOANS THE 141 MILLION IN CLASS A CERTIFICATES WERE PRICED AS 51S AT 999375 TO YIELD 5185 A 95BASISPOINT SPREAD ABOVE THE INTERPOLATED 232YEAR POINT ON THE TREASURY YIELD CURVE THE CERTIFICATES RATED TRIPLEA BY BOTH MOODY'S AND S&P HAVE AN AVERAGE LIFE OF 332 YEARS THE 9 MILLION IN CLASS B SUBORDINATE CERTIFICATES WERE PRICED AS 67S AT 9996875 TO YIELD 6797 A 130BASISPOINT SPREAD ABOVE THE TREASURY'S 7875S OF AUGUST 2000 THE CERTIFICATES RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P HAVE AN AVERAGE LIFE OF 77 YEARS CORESTATES BANK IS A UNIT OF CORESTATES FINANCIAL CORP NAVISTAR FINANCIAL CORP 335 MILLION OF TRUCK RECEIVABLE ASSETBACKED CERTIFICATES NAVISTAR FINANCIAL CORP OWNER TRUST 1993A PRICED IN THREE PARTS BY UNDERWRITERS LED BY CHEMICAL SECURITIES CORP ACCORDING TO MCM CORPORATEWATCH THE 1273 MILLION IN CLASS A1 NOTES WERE PRICED AS 4347 AT PAR THE NOTES WITH AN AVERAGE LIFE OF 0347 YEARS FLOATS FLAT TO THE FOURMONTH LONDON INTERBANK OFFERED RATE THE 1959 MILLION IN CLASS A2 NOTES WERE PRICED AS 4475S AT 999375 TO YIELD 4879 A 55BASISPOINT SPREAD ABOVE THE TREASURY'S 4125 OF JUNE 1995 DETAILS ON A 117 MILLION CLASS OF CERTIFICATES WERE UNAVAILABLE NAVISTAR FINANCIAL IS A UNIT OF NAVISTAR INTERNATIONAL CORP CANADA 725 2008 CAYMAN SPECIALPURPOSE VEHICLE 300 MILLION CANADIAN DOLLARS OF ASSETBACKED EUROBONDS DUE JUNE 1 2008 AT ISSUE PRICE 9935 VIA WOOD GUNDY INC BONDS SECURED ON NOT LESS THAN C300 MILLION OF GOVERNMENT OF CANADA 725 BONDS OF 2008 REOFFERED AT 975 TO YIELD 753 A SPREAD OF 50 BASIS POINTS ABOVE CANADIAN GOVERNMENT BOND OF DECEMBER 2003 FEES 225 GENERALIDAD DE CATALUNYA SPAIN ONE BILLION FRENCH FRANCS OF 625 EUROBONDS DUE NOV 26 2003 AT ISSUE AND REOFFER PRICE 98773 VIA CREDIT COMMERCIAL DE FRANCE BONDS YIELD 642 A MARGIN OF 35 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY FEES 0375 INTERNATIONALE NEDERLANDEN VERZEKERINGEN NETHERLANDS 250 MILLION DUTCH GUILDERS OF 625 EUROBONDS DUE JAN 12 2009 AT ISSUE PRICE 994 VIA INTERNATIONALE NEDERLANDEN BANK NV REOFFERED AT 9875 TO YIELD 638 A MARGIN OF 249 BASIS POINTS ABOVE DUTCH STATE LOAN OF SEPTEMBER 2007 FEES ONE METALURGICA GERDAU SA BRAZIL 100 MILLION OF 1025 EUROBONDS DUE NOV 23 2001 AT ISSUE AND REOFFER PRICE 994 VIA CITIBANK INTERNATIONAL PLC BONDS YIELD 10362 TO MATURITY A SPREAD OF 500 BASIS POINTS ABOVE INTERPOLATED EIGHTYEAR US TREASURY YIELD CURVE PUT OPTION EXERCISABLE ON THIRD ANNIVERSARY AT 9472 TO YIELD 8908 A MARGIN OF 450 BASIS POINTS OVER THREEYEAR TREASURY AND ON FIFTH ANNIVERSARY AT 975 TO YIELD 10008 A MARGIN OF 500 BASIS POINTS OVER FIVEYEAR TREASURY FEES 1375 PAYABLE SEMIANNUALLY NISSHO IWAI EUROPE PLC JAPANESE PARENT FIVE BILLION YEN OF 315 EUROBONDS DUE MAY 9 1997 AT ISSUE AND REOFFER PRICE 10025 VIA SANWA INTERNATIONAL PLC BONDS YIELD 307 KEEPWELL AGREEMENT WITH NISSHO IWAI CORP FEES 025 SOCIETE NATIONALE ELF AQUITAINE FRANCE 125 MILLION SWISS FRANCS OF 4125 PUBLIC BONDS DUE DEC 3 2001 PRICED AT 10225 VIA UNION BANK OF SWITZERLAND FEES 2625 9311040056 931104 FOREIGN EXCHANGE DOLLAR SURRENDERS PART OF RECENT GAINS AS TRADERS WAIT FOR US PAYROLL DATA BY BENJAMIN DOLVEN SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR GAVE UP SOME OF ITS RECENT GAINS AGAINST OTHER MAJOR CURRENCIES IN QUIET TRADING AS THE FOREIGN EXCHANGE MARKET SET ITS SIGHTS ON US EMPLOYMENT DATA DUE FOR RELEASE FRIDAY THE DOLLAR TRADED IN NARROW RANGES THROUGHOUT THE GLOBAL TRADING DAY AFTER AN EARLY DROP AGAINST THE MARK YEN AND STERLING THE US CURRENCY FOUND STRONG SUPPORT AGAINST ALL THREE CURRENCIES WHICH KEPT ITS LOSSES WELL UNDER CONTROL MUCH OF YESTERDAY'S ACTIVITY TOOK PLACE IN THE MARKYEN AND MARKSTERLING CROSSES WHERE THE GERMAN CURRENCY WAS MIXED TO HIGHER AFTER THE BUNDESBANK DISAPPOINTED EXPECTATIONS FOR A SIGNIFICANTLY LOOSER INTEREST RATE STANCE LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16925 MARKS DOWN FROM 17035 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10768 YEN DOWN FROM 10780 YEN STERLING WAS TRADING AT 14825 UP FROM 14728 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10757 YEN AND AT 16901 MARKS THE MARK TRADED LATE AT 6359 YEN UP FROM 6328 YEN LATE TUESDAY THE POUND WAS AT 25099 MARKS LITTLE CHANGED FROM 25101 MARKS DEALERS DESCRIBED THE DOLLAR'S DAY AS A CONSOLIDATION OF ITS RECENT GAINS AGAINST THE MARK AND THE POUND THE DOLLAR HAD POSTED FOUR STRAIGHT DAYS OF GAINS AGAINST THE MARK WHICH HAD TAKEN IT UP NEARLY THREE PFENNIGS DEALERS ALSO NOTED THAT SOME PARTICIPANTS WERE ADJUSTING POSITIONS AHEAD OF THE EMPLOYMENT DATA RELEASE WITH ASIAN TRADING SLOWED BY A NATIONAL HOLIDAY IN JAPAN THE DOLLAR'S MOVES BEGAN EARLY IN EUROPE AS PARTICIPANTS TOOK PROFITS ON DOLLARS BOUGHT EARLIER THAT SENT THE US UNIT BACK THROUGH THE 17000MARK LEVEL A PSYCHOLOGICALLY IMPORTANT POINT IT ALSO TOOK THE DOLLAR LOWER AGAINST THE YEN BUT THE DOLLAR FOUND STRONG BUYING INTEREST WHEN IT HIT 16920 MARKS AND 10710 YEN IT LINGERED AT SLIGHTLY ABOVE THOSE LEVELS BEFORE LIGHT BUYING BROUGHT IT UP A TOUCH IN THE NORTH AMERICAN AFTERNOON DEALERS REMAINED CONFIDENT THAT THE DOLLAR WILL CONTINUE TO STRENGTHEN BASED ON THE PERCEPTION THAT THE US ECONOMIC RECOVERY IS GATHERING MOMENTUM THEY SAID MANY TRADERS RETAIN LONG POSITIONS IN THE DOLLAR PARTICULARLY AGAINST THE MARK BETTING THE US CURRENCY WILL MAKE FURTHER GAINS THE BULLISH PERCEPTIONS HAVE BEEN REINFORCED BY A STRING OF POSITIVE ECONOMIC REPORTS FROM THE US OVER THE PAST TWO WEEKS THE DOLLAR HAS MADE STRONG GAINS AGAINST THE MARK AND THE POUND DURING THAT PERIOD THE NEXT IMPORTANT READING ON THE US ECONOMY DEALERS SAID IS THE FRIDAY RELEASE OF NONFARM PAYROLLS FOR OCTOBER MARKET EXPECTATIONS ARE FOR PAYROLLS TO HAVE INCREASED BY 135000 IN THE MONTH DEALERS SAID MOST PARTICIPANTS HAVE ALREADY ACCOUNTED FOR A POSITIVE FIGURE AND THAT THE DOLLAR WON'T GET MUCH IMMEDIATE SUPPORT UNLESS THE FIGURES ARE A GOOD DEAL HIGHER THAN EXPECTED IF THE PAYROLL FIGURE IS OVER 200000 WE'LL MAKE ANOTHER RUN AT 17000 MARKS SAID EARL JOHNSON VICE PRESIDENT AT HARRIS TRUST & SAVINGS BANK IN CHICAGO BUT WE'LL GO AT LEAST TO 16850 IF THE NUMBER IS BAD BUT MR JOHNSON NOTED EVERYBODY IS BULLISH ON THE DOLLAR MEDIUMTERM THE QUESTION IS WHERE IT GOES IMMEDIATELY THE DOLLAR LARGELY SHRUGGED OFF THE RELEASE OF US CAR SALES FIGURES FOR LATE OCTOBER WHICH WERE LARGELY AS EXPECTED THE MARK CONTINUED TO HAVE TROUBLE AGAINST MANY MAJOR CURRENCIES DESPITE SLIGHT GAINS AGAINST THE DOLLAR AND THE YEN THE GERMAN CURRENCY WAS FLAT TO LOWER AGAINST OTHER EUROPEAN CURRENCIES THE MARK'S RECENT TROUBLES HAVE COME AGAINST THE BACKDROP OF ECONOMIC STAGNATION IN GERMANY AND PERCEPTIONS THAT THE BUNDESBANK IS TAKING AN EASIER MONETARY STANCE DESPITE A BETTERTHANEXPECTED READING ON GERMAN MANUFACTURING ORDERS FOR SEPTEMBER AND A MIXED BAG OF SIGNALS FROM THE CENTRAL BANK'S REPURCHASE OPERATION MOST ANALYSTS SAID LITTLE HAS CHANGED FUNDAMENTALLY FOR THE MARK BUT IN THE ABSENCE OF MAJOR ECONOMIC NEWS THE BUNDESBANK'S REPURCHASE OPERATION CAUGHT THE MARKET'S EYE THE CENTRAL BANK ACCEPTED BIDS AT RATES AS LOW AS 639 A HAIR BELOW THE LOWEST ACCEPTED BID OF 640 IN THE PREVIOUS WEEK THE BUNDESBANK ALSO DRAINED 62 BILLION MARKS IN LIQUIDITY IN THE REPURCHASE MOVE 9311040053 931104 TWA REGROUPS EMERGES FROM BANKRUPTCY SHIELD MOUNT KISCO NY TRANS WORLD AIRLINES INC ONE OF THE PIONEERING US AIR CARRIERS SAID IT HAS EMERGED FROM CHAPTER 11 BANKRUPTCY REORGANIZATION THE NATION'S SEVENTHLARGEST AIRLINE WHICH FILED FOR BANKRUPTCY PROTECTION JAN 31 1992 HAD BEEN RUNNING SEVERAL WEEKS LATE IN ITS FORMAL EMERGENCE FROM CHAPTER 11 IN AUGUST WHEN TWA WON COURT APPROVAL FOR ITS REORGANIZATION PLAN IT SAID IT EXPECTED TO CLEAR THE FINAL HURDLES BY EARLY SEPTEMBER THE REORGANIZATION PLAN WILL RESULT IN ABOUT 1 BILLION IN DEBT REDUCTION EMPLOYEE CONCESSIONS WILL PROVIDE AN ADDITIONAL 600 MILLION IN LABORCOST SAVINGS OVER THREE YEARS THE PLAN CALLS FOR TWA TO BE 45 EMPLOYEEOWNED WITH THE REMAINING 55 OF THE EQUITY HELD BY CREDITORS YESTERDAY TWA LAUNCHED A PROMOTION SAYING IT WOULD OFFER FREE COMPANION TICKETS FOR TRAVEL WITHIN THE US OR EUROPE FROM JAN 5 THROUGH MAY 15 1994 TO QUALIFY A CUSTOMER HAS TO FIRST BUY A DOMESTIC OR INTERNATIONAL TICKET WITH A FARE OF AT LEAST 250 BY FRIDAY TRAVEL MUST BEGIN BY DEC 31 PASSENGERS THEN CAN APPLY FOR A CERTIFICATE FOR THE FREE COMPANION TICKET BUT CUSTOMERS RECEIVE THE COMPANION TICKET ONLY AFTER BUYING ANOTHER TICKET AT A QUALIFYING FARE 9311040052 931104 GIANT UNDER STRESS WITH UNEMPLOYMENT CLIMBING IN GERMANY SO ARE SOCIAL TENSIONS FIRMS ARE CUTTING BOTH JOBS AND THE COSTLY BENEFITS ALL EUROPE TO PAY PRICE OMINOUS MEMORY OF WEIMAR BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL STUTTGART GERMANY DAIMLERBENZ AG IS ELIMINATING ITS SUBSIDIES FOR FIRSTCOMMUNION AND CONFIRMATION CLOTHES FOR EMPLOYEES' CHILDREN ROBERT BOSCH GMBH AN ELECTRONICS GIANT HAS ENDED ITS WORKERS' THREEWEEK FREE VISITS TO SPAS AND BALLBEARING MAKER FAG KUGELFISCHER GEORG SCHAEFER AG HAS CLOSED ITS LENDING LIBRARY WITH RECESSIONBATTERED GERMAN COMPANIES PUSHING THROUGH THEIR MOST DRASTIC RESTRUCTURING IN A GENERATION THEY ARE WIPING OUT A WIDE RANGE OF LONGSTANDING BENEFITS AND REDUCING MANY OTHERS INCLUDING THE BIG CHRISTMAS AND VACATION BONUSES WORST OF ALL THEY ARE SLASHING MANY OF THE JOBS THAT PRODUCED GERMANY'S INDUSTRIAL CORNUCOPIA GERMANY IS HEADED FOR AN EXPERIENCE WITH LONGTERM UNEMPLOYMENT WARNS PETERRUEDIGER PUF CHIEF ECONOMIST OF DAIMLERBENZ THE STUTTGARTBASED COMPANY WHICH ANNOUNCED YESTERDAY IT EXPECTS TO REPORT A 118 BILLION LOSS FOR THE FIRST NINE MONTHS OF THIS YEAR IS REDUCING ITS OWN GERMAN PAYROLL BY AT LEAST 35000 FROM 294000 IN FACT THE NUMBERS EMERGING FROM GERMANY'S STRUGGLE WITH THE WORLD'S HIGHEST LABOR COSTS LOW GLOBAL DEMAND AND AN OVERVALUED CURRENCY ARE CHILLING IN THE PAST 12 MONTHS GERMAN INDUSTRY HAS CUT A NET 739000 JOBS AND THE OFFICIAL UNEMPLOYMENT RATE HAS CLIMBED IN THE WESTERN PART OF THE COUNTRY TO 74 OF THE LABOR FORCE AND IN THE EAST TO 152 AND EVEN THOUGH THE BUNDESBANK RECENTLY CUT INTEREST RATES MORE AGGRESSIVELY EXECUTIVES SEE SCANT HOPE FOR AN ECONOMIC UPSWING IN 1994 A SURVEY OF MORE THAN 20000 COMPANIES BY THE GERMAN CHAMBER OF INDUSTRY AND COMMERCE RELEASED YESTERDAY PREDICTS FLAT GROWTH NEXT YEAR A DECLINE IN CAPITAL SPENDING AND FURTHER JOB LOSSES INCLUDING PEOPLE NOW IN GOVERNMENTPAID RETRAINING PROGRAMS ESPECIALLY ONES IN THE EAST THAT RARELY LEAD TO JOBS AND IN PARTTIME GOVERNMENTSUBSIDIZED JOBS DR PUF PREDICTS THAT UNEMPLOYMENT WILL RISE TO AN AVERAGE OF 65 MILLION NEXT YEAR FROM 44 MILLION NOW FOR A NATION AS ALLERGIC TO UNEMPLOYMENT AS TO INFLATION TALK OF SIX MILLION UNEMPLOYED OUT OF A LABOR FORCE OF ABOUT 36 MILLION HAS AN OMINOUS RING THAT WAS THE HIGHWATER MARK OF THE ILLFATED WEIMAR REPUBLIC IN THE TROUBLED YEARS BETWEEN THE WORLD WARS AND JOBLESSNESS HASN'T CLIMBED THAT HIGH SINCE THEN TO BE SURE TODAY'S AMPLE UNEMPLOYMENT BENEFITS MAKE THE SITUATION A FAR CRY FROM WEIMAR AS MUNICH'S DAILY SUEDDEUTSCHE ZEITUNG QUIPPED PARKS THEN WERE PACKED WITH THE CARDPLAYING HUNGRY AGGRESSIVE OR APATHETIC UNEMPLOYED TODAY ONE KILLS TIME ON VACATION IN MALLORCA BUT EVEN NOW PERSISTENT UNEMPLOYMENT IS THREATENING GERMAN SOCIAL STABILITY STOKING XENOPHOBIC VIOLENCE AND STRENGTHENING EXTREMIST POLITICAL PARTIES MY FEAR ADMITS HORST ALBACH A DIRECTOR OF THE WISSENSCHAFTSZENTRUM BERLIN A SOCIALPOLICY THINK TANK WAS THAT WE WOULD HAVE SOCIAL UNREST WELL BEFORE WE GOT TO FOUR MILLION MANY PEOPLE OF MY FATHER'S GENERATION TURNED NAZI BECAUSE THEY COULDN'T STAND SUCH HIGH RATES OF UNEMPLOYMENT IN RECENT ELECTIONS IN HAMBURG ONE IN SIX VOTERS IN BLUECOLLAR NEIGHBORHOODS VOTED FOR THE FAR RIGHT MOREOVER A CONTINUING SLUMP IN EUROPE'S DOMINANT ECONOMY AUGURS ILL FOR THE SLACK ECONOMIES ALL OVER THE CONTINENTAND FOR US EXPORTS HOPING TO REDUCE PERSONNEL COSTS 20 VW'S MANAGEMENT HAS BEGUN DISCUSSIONS WITH ITS WORKERS' COUNCIL ABOUT INTRODUCING A FOURDAY WORK WEEK HOWEVER UNION LEADERS IN THE AUTO INDUSTRY AND OTHER SECTORS ARE DUBIOUS ABOUT SWALLOWING A 20 WAGE CUT EMPLOYERS CRITICIZE THE IDEA BECAUSE OF THE LIKELIHOOD THAT A COMPROMISE PROVIDING FOR EXAMPLE 4 1/2 DAYS' PAY FOR FOUR DAYS OF WORK WOULD ACTUALLY RAISE VW'S UNIT LABOR COSTS AS A MODEL FOR OTHER INDUSTRIES THEY SAY THE PLAN WOULDN'T DELIVER THE NEEDED PRODUCTIVITY GROWTH EITHER IF WE DON'T BECOME MORE COMPETITIVE WE WILL REMAIN ON A DOWNWARD SLOPE WARNS NORBERT WALTER CHIEF ECONOMIST OF DEUTSCHE BANK RESEARCH NATIONWIDE THE SITUATION IS DIRE ENOUGH THAT ECONOMICS MINISTER GUENTER REXRODT WEIGHED IN YESTERDAY WITH AN EYEOPENING PROPOSITION THAT JOBS COULD BE SAVED IF COMPANIES OPERATING BELOW CAPACITY COULD AGREE TO THREE MONTHS' VACATION A YEAR WITH WORKERS RECEIVING REDUCED WAGES UNION LEADERS ROUNDLY ATTACKED THE PROPOSAL AS A NEW WAY TO IMPOVERISH WORKERS BUT MR REXRODT DEFENDED IT SAYING UNCONVENTIONAL AND PRACTICABLE SOLUTIONS ARE NEEDED TO KEEP LAYOFFS TO A MINIMUM THE CONTINUOUS STREAM OF BAD NEWS IS TAKING ITS TOLL THE MOOD HAS CERTAINLY BEEN BETTER SAYS MARIO GEBERT AN ASSEMBLYLINE WORKER AT DAIMLER'S MERCEDESBENZ DIVISION WHERE MOST OF THAT COMPANY'S CUTBACKS WILL FALL HAVING EXPECTED LIFELONG SECURITY HE SAYS EVERYONE NOW HAS ANGST BECAUSE EVERYONE IS REPLACEABLE THAT'S SOMETHING EVEN EXECUTIVES FIND DISMAYING UNLIKE HIREANDFIRE US EMPLOYERS GERMAN COMPANIES HAVE FOCUSED FOR A GENERATION ON RETAINING WORKERS LAYOFFS HAVE BEEN VIEWED AS DESPICABLE RECENTLY HANDLING THAT TASK FELL TO JUERGEN DITTERT AS KUGELFISCHER'S PERSONNEL CHIEF MR DITTERT HAD TO MAKE THE CUTBACKS NEEDED TO BRING IT BACK FROM THE BRINK OF INSOLVENCY THE BEARING MAKER SOLD OFF PERIPHERAL BUSINESSES AND STOPPED PUMPING MONEY INTO AN EASTERN GERMAN FIRM IT BOUGHT IN 1990 MR DITTERT HOWEVER STILL HAD TO DISMISS MORE THAN 5700 OF THE 15000 WORKERS AT KUGELFISCHER'S WESTERN GERMAN PLANTS HE DID IT THE TRADITIONAL GERMAN WAY WITH FAT PAYOFFS HE PERSUADED 90 OF THOSE TARGETED TO TAKE VOLUNTARY SEVERANCE PACKAGES WHICH AVERAGED ABOUT 16500 OR EARLY RETIREMENT WHICH WAS ACCOMPANIED BY UNSPECIFIED PAYMENTS THE REST WERE LAID OFF AND BY LAW GOT PACKAGES RUNNING SLIGHTLY UNDER 16500 MR DITTERT WAS VILIFIED HE SAYS MY FAMILY WAS THREATENED WE GOT ANONYMOUS PHONE CALLS AT HOME A DRAMATIC EVENT IN A CULTURE WHERE COWORKERS ARE SO FORMAL THAT EVEN AFTER DECADES THEY MAY NOT KNOW EACH OTHER'S FIRST NAMES THERE WAS NO GETTING AWAY FROM THE ANGER IN SCHWEINFURT A BAVARIAN TOWN DOMINATED BY KUGELFISCHER AND TWO OTHER HARDHIT MANUFACTURERS AND SUFFERING 14 UNEMPLOYMENT IN SCHOOL HE SAYS MY KIDS WERE HASSLED BY OTHERS WHO SAID 'YOUR FATHER IS THE ONE FIRING PEOPLE' THIS WAS BY FAR THE MOST UNPLEASANT THING I'VE EVER GONE THROUGH IN MY PROFESSIONAL LIFE HIS ORDEAL HINTS OF WHAT MIGHT BE AHEAD FOR GERMANY WHICH IS FAST RUNNING OUT OF WORKERS WHO CAN BE BRIBED INTO LEAVING THEIR JOBS IN THE PAST TWO YEARS AN ESTIMATED 230000 PEOPLE IN WESTERN GERMANY HAVE TAKEN PACKAGES THAT ALLOWED THEM TO STOP WORKING IN THEIR MID TO LATE50S IN THE EAST THE NUMBER PUSHED INTO RETIREMENT SINCE UNIFICATION EXCEEDS 900000 NEARLY A GENERATION TRAPPED UNDER THE WRECKAGE OF THE LOCAL ECONOMY EARLY RETIREES IN BOTH REGIONS AREN'T COUNTED IN OFFICIAL UNEMPLOYMENT FIGURES WHILE THE EASTERNERS HAVE REACTED BITTERLY DESPITE GETTING SOME SEVERANCE PAY WESTERNERS' REACTIONS SO FAR HAVE BEEN REMARKABLY CALM ALTHOUGH MANY EARLY RETIREES WOULD PREFER TO WORK AN ARMY OF PEOPLE IN THEIR MID50S HAS GONE MORE OR LESS WILLINGLY INTO RETIREMENT THEY HAVE BEEN MOLLIFIED BY A COMBINATION OF GOVERNMENT UNEMPLOYMENT BENEFITS AND CORPORATE PAYMENTS THAT LIFTS THEIR INCOME CLOSE TO THEIR FORMER PAY SOME MAY HAVE BEEN BROWBEATEN BY WORKERS' COUNCILS WHICH HAVE A SAY IN CORPORATE MANAGEMENT IN ADDITION MANY EXPRESS A SENSE OF SOCIAL RESPONSIBILITY BEFORE ANY YOUNG PEOPLE HAVE TO GO I FELT I HAD TO SAYS GUENTER BLEIWEIS A FORMER KUGELFISCHER EXECUTIVE WHO LEFT AT AGE 57 BUT GERMAN COMPANIES SEEM TO HAVE EXHAUSTED THIS MEANS OF CUTTING STAFF DAIMLERBENZ HAS NIBBLED THE AGE OF ELIGIBILITY DOWN TO A TEUTONICALLY PRECISE 55 YEARS AND SEVEN MONTHS THAT ITS EXECUTIVES THINK IS ABOUT THE LIMIT THEY FEAR LOSING TOO MANY EXPERIENCED WORKERS FURTHER MEASURES FOR THE SLIMMING DOWN THAT GERMAN INDUSTRY NEEDS TO REGAIN COMPETITIVENESS CAN COST EVEN MORE THAN EARLYRETIREMENT PACKAGES THE LEGALLY REQUIRED COMPENSATION FOR LAYOFFS CAN RANGE AS HIGH AS 36000 PER WORKER ECONOMISTS SAY THIS REQUIREMENT HAS PREVENTED MANAGERS FROM USING LABOR AS A DISPOSABLE RESOURCE AND INSTEAD HAS PRODDED THEM TO INVEST IN WORKERS TO IMPROVE PRODUCTIVITY HOWEVER IT ALSO IMPEDES JOB CREATION ONCE YOU HAVE TO INVEST IN CUTTING A JOB YOU THINK THREE OR FOUR TIMES BEFORE YOU CREATE ONE AGAIN SAYS HEINRICH WEISS CHAIRMAN OF SMS SCHLOEMANNSIEMAG AG A DUESSELDORFBASED MACHINERY BUILDER JOBS BEING LOST NOW WON'T RETURN SOON THE REASON LABOR COSTS IN GERMANY ARE SO MUCH HIGHER THAN THOSE IN EASTERN EUROPE MANY PACIFIC RIM COUNTRIES OR EVEN THE US AT A TIME WHEN AS DAIMLER'S DR PUF PUTS IT WE CAN EXPORT PRODUCTIVITY INTO THE SAHARA OR ALABAMA AS DAIMLER'S MERCEDESBENZ AIMS TO PROVE WITH ITS RECENTLY ANNOUNCED TUSCALOOSA COUNTY AUTO PLANT WITH SO MUCH INVESTED IN GERMANY COMPANIES ARE DESPERATELY TRYING TO REDUCE THOSE LABOR COSTS THEY ARE CUTTING NOT JUST INTO FRINGE BENEFITS BUT INTO WHAT WORKERS CONSIDER PART OF THEIR LIVELIHOOD MANY COMPANIES PLAN TO SLASH CHRISTMAS BONUSES WHICH IN THE AUTO AND ENGINEERING SECTORS OFTEN EQUAL A MONTH'S PAY COLLECTIVE BARGAINING AGREEMENTS GUARANTEE MUCH OF THAT AMOUNT BUT MANAGERS WILL SLICE INTO THE EXTRA 40 OR SO THAT THE COMPANIES HAVE VOLUNTARILY PAID AS A KIND OF PROFIT SHARING THE EMPLOYERS' ASSOCIATION FOR AUTO PRODUCERS THEIR SUPPLIERS AND MACHINE MAKERS ALSO IS BARGAINING WITH THE UNION IN AN EFFORT TO REPOSSESS ONE OF THE WORKERS' JUICIEST PLUMS THE 50 WAGE PREMIUM THEY COLLECT WHILE ON THEIR SIXWEEK ANNUAL VACATIONS DESPITE SUCH EFFORTS MANY EXECUTIVES AREN'T CONVINCED THAT THEY CAN REDUCE COSTS ENOUGH COMPETITIVE PRODUCTION IS SIMPLY NOT TENABLE IN GERMANY DECLARES HANJOACHIM OEHMEN CHIEF FINANCIAL OFFICER OF OPTISCHEN WERKE G RODENSTOCK BY 1995 THE MUNICH OPTICS COMPANY WILL HAVE MOVED 50 OF ITS CAPACITY ABROAD MORE THAN TRIPLE THE 1988 LEVEL IN THE PROCESS 2000 GERMAN JOBS ARE BEING ELIMINATED SPEAKING OF TWO PLACES WHERE THE COMPANY HAS BUILT UP CAPACITY HE NOTES WAGE COSTS IN MALTA ARE ONEFIFTH WHAT THEY ARE IN GERMANY AND IN THAILAND ONETWENTIETH OF MR OEHMEN'S GERMAN COMPETITORS IN THE OPTICS AND FINEMECHANICS FIELD 20 HAVE EXPORTED CAPACITY AND 30 MORE SAY THEY INTEND TO SOON SIMILAR PLANS ARE AFOOT IN INDUSTRIES RANGING FROM CHEMICALS TO COMPUTER SOFTWARE IRONICALLY MUCH OF THE BLAME FOR THE HIGH LABOR COSTS FALLS ON THE ARRAY OF SOCIALWELFARE BENEFITS THAT SO FAR HAVE HELPED DAMP SOCIAL UNREST AS THE COST OF SUPPORTING SO MANY UNEMPLOYED HAS RISEN SO HAS THE BURDEN ON EMPLOYERS AND THEIR WORKERS UNEMPLOYMENT BENEFITS STATE PENSIONS AND HEALTHCARE COSTS ARE ALL COVERED THROUGH INSURANCE FUNDS FINANCED THROUGH PAYROLL DEDUCTIONS WITH EMPLOYERS AND EMPLOYEES SPLITTING THE BILL BUT WITH EVERFEWER WORKERS CARRYING THE LOAD FOR A GROWING JOBLESS OR RETIRED POPULATION ERWIN SCHEUCH A COLOGNE UNIVERSITY SOCIOLOGIST SAYS THE SYSTEM OF SOCIAL WELFARE PAID BY DEDUCTIONS IS BREAKING DOWN ITS TOTAL COST NEXT YEAR WILL EQUAL 40 OF BASIC WAGES THE SPIRALING UNEMPLOYMENTINSURANCE COST RESEMBLES THE SURGE PLAGUING AMERICAN HEALTH CARE JUST SINCE 1990 PAYROLL LEVIES FOR THE INSURANCE HAVE JUMPED TO 65 FROM 43 AND EVEN AT THAT THE INSURANCE FUND NEEDS A GOVERNMENT BAILOUT TO COVER ONEQUARTER OF ITS 67 BILLION BUDGET THE GOVERNMENT'S LATEST PLAN TO SAVE MONEY BY CUTTING BACK ON OVERALL SOCIAL BENEFITS TRIMMED ONLY 9 BILLION OFF THE 600 BILLION PAID OUT ANNUALLY WITH BONN FACING AN ELECTION YEAR CHANCELLOR HELMUT KOHL'S GOVERNMENT HAS SHIED AWAY FROM DRAMATIC REMEDIES IF YOU NEED TO MAKE CHANGES IN YOUR INSTITUTIONSAND WE DOYOU NEED A STRONG GOVERNMENT SAYS MR ALBACH OF THE SOCIALPOLICY THINK TANK BUT WITH THE MAJOR PARTIES RELUCTANT TO ACT HE SEES LITTLE HOPE FOR A TURNAROUND SOON AS UNEMPLOYMENT STAYS HIGH MOREOVER THE BURDEN OF THE RECESSION IS SPREADING BEYOND EARLY RETIREES AND LAIDOFF WORKERS TO YOUNG PEOPLE WHO CAN'T BREAK INTO THE LABOR FORCE POTENTIALLY THE GROUP WITH THE MOST EXPLOSIVE FRUSTRATIONS UNDER THE MOST STRAIN ARE RECENT UNIVERSITY GRADUATES WHO SEE THE ALREADYTIGHT JOB MARKET CONSTRICTING FURTHER IN INDUSTRIES SUCH AS CHEMICALS AND ENGINEERING THE NUMBER OF HIRES IS PLUMMETING DAIMLER FOR EXAMPLE HAS REDUCED ITS HIRING OF UNIVERSITY GRADUATES TO ONETHIRD THE 1990 LEVEL ANDREAS WENZEL WHO EARNED AN ECONOMICS DEGREE AT FREIBURG UNIVERSITY AND THEN HELD A RESEARCH JOB AT THE EUROPEAN PARLIAMENT HAS BEEN UNEMPLOYED FOR 15 MONTHS NOW AFTER RETRAINING TO WORK IN A COMPUTER COMPANY HE IS TO START A NEW JOB JAN 1 HE THINKS THINGS HAVE ALREADY GONE SO FAR THAT PARADOXICALLY HIS GENERATION MAY WELL AVOID THE DEPRESSION AND APATHY THAT OFTEN AFFLICT THE UNEMPLOYED I DON'T KNOW ANYONE YET WHO'S BEEN DEEPLY AFFECTED PSYCHOLOGICALLY HE SAYS UNEMPLOYMENT FOR A YEAR OR SO IN THIS SOCIETY IS BECOMING A NORMAL EXPERIENCE TERENCE ROTH CONTRIBUTED TO THIS ARTICLE 9311040051 931104 WHAT MRS CLINTON DOESN'T UNDERSTAND ABOUT INSURANCE BY WILLIAM TUCKER WHEN HILLARY CLINTON FINALLY LOST HER COMPOSURE ON MONDAY AND ACCUSED THE INSURANCE COMPANIES OF GREED AND OF BRINGING US TO THE BRINK OF BANKRUPTCY HER REMARKS SAID TWO THINGS ABOUT THE CLINTON ADMINISTRATION'S HEALTH CARE PROPOSALS NEITHER OF THEM VERY FLATTERING FIRST THEY ILLUSTRATED WHAT MIGHT BE CALLED THE IRON LAW OF PRICE CONTROLS THIS IS THAT THE PEOPLE WHO ARE TARGETED BY A PRICE CONTROL MUST EVENTUALLY BE DEMONIZED AND MADE INTO ENEMIES OF THE PEOPLE THINK OF NEW YORK LANDLORDS OR OF OIL COMPANY EXECUTIVES DURING THE ENERGY CRISIS THIS KIND OF OPPROBRIUM NOW AWAITS DOCTORS AND INSURANCE COMPANIES MORE IMPORTANT HOWEVER MRS CLINTON'S OUTBURST INDICATES THAT DESPITE THE ADMINISTRATION'S WELLMEANING EFFORT TO CORRECT SOME OBVIOUS INEQUITIES IN THE INSURANCE MARKET SHE AND HER HUSBAND HAVE NOT YET REALLY GRASPED THE TRUE NATURE OF THE PROBLEM MRS CLINTON FAULTED INSURANCE COMPANIES FOR SCREENING OUT UNHEALTHY PEOPLE BECAUSE THE MORE THEY CAN EXCLUDE THE MORE THEY CAN MAKE IN HIS SEPTEMBER HEALTH CARE SPEECH PRESIDENT CLINTON CITED A FLORIDA SMALLBUSINESS OWNER WHO HAD HIS POLICY CANCELED BECAUSE TWO OF HIS EMPLOYEES HIS MOTHER AND FATHER HAD BECOME TOO OLD EVERYONE KNOWS THESE STORIES AND FINDS THEM APPALLING A FRIEND OF MINE HAD A CONSTRUCTIONWORKER FATHER WHOSE NET WORTH OF 300000 EVAPORATED WHEN THE INSURANCE COMPANY WOULDN'T COVER HIS CANCER ALL WE HAD LEFT WAS ENOUGH FOR A FUNERAL HE SAYS BUT IS IT SIMPLY INSURANCE COMPANY GREED THAT LEADS TO THESE OUTCOMES AFTER ALL WE DON'T HAVE THE SAME PROBLEMS IN FIRE AUTO OR OTHER TYPES OF INSURANCE THE ANSWER LIES IN THE PECULIAR WAY WE HAVE TIED HEALTH INSURANCE TO EMPLOYMENT A POLICY THAT UNFORTUNATELY THE CLINTONS WANT TO BUILD IN TO THEIR BRAVE NEW WORLD INSURANCE IS BASED ON POOLING RISKS THE VAST MAJORITY OF PEOPLE WHO REMAIN HEALTHY SUBSIDIZE THOSE FEW WHO SUFFER SEVERE ILLNESSES IF INSURANCE COMPANIES CALCULATE THE ODDS RIGHT THE PREMIUMS FROM THOSE WHO STAY HEALTHY WILL COVER THE COSTS OF THOSE WHO GET SICK WITH PERHAPS A LITTLE LEFT OVER TRADITIONALLY INSURANCE COMPANIES MAKE THEIR PROFITS NOT FROM UNDERWRITING BUT FROM INVESTING THE PREMIUMS THEY HOLD THE KEY TO SUCCESS IN UNDERWRITING IS TO WIDEN THE POOLS OF HEALTHY PEOPLE SO THERE ARE ENOUGH TO COVER THE SERIOUSLY ILL INSURANCE COMPANIES GENERALLY TAKE INDIVIDUAL POLICYHOLDERS AND COMBINE THEM INTO LARGE POOLS THESE POOLS ARE THEN FURTHER WIDENED BY SELLING REINSURANCE THE PROBLEM WE HAVE TODAY IS THIS BECAUSE HEALTH INSURANCE IS A TAXFREE BENEFIT OF EMPLOYMENT INSURANCE COMPANIES HAVE FOUND IT PROFITABLE TO OFFER GROUP RATES TO THE RELATIVELY HEALTHY PEOPLE WHO MAKE UP THE WORK FORCE TRUE AN OCCASIONAL PARAPLEGIC SPOUSE OR CHRONICALLY ILL CHILD SLIPS INTO THE POOL BUT GENERALLY WORKING ADULTS ARE HEALTHY ON A SELFSELECTED BASIS IN FACT THE ECONOMICS OF CARVING OUT LOWRISK POOLS OF WORKING PEOPLE ARE SO ATTRACTIVE THAT LARGE EMPLOYERS HAVE DISPENSED WITH THE UNDERWRITING COMPANIES AND OPTED TO INSURE THEMSELVES THIS PROCESS HAS BEEN VASTLY SUPPORTED BY THE EMPLOYEE RETIREMENT INCOME SECURITY ACT ERISA WHICH EXEMPTS SELFINSURED COMPANIES FROM STATE REGULATION AND MORE IMPORTANT FROM HIGHRISK POOLS THE STATES HAVE ESTABLISHED FOR PEOPLE WITH PREEXISTING MEDICAL CONDITIONS AMONG COMPANIES WITH 500 TO 1000 EMPLOYEES 63 SELFINSURE FROM 10000 TO 20000 IT RISES TO 87 INSURANCE IS VERY MUCH LIKE A GAME OF OLD MAID THE IDEA IS NOT TO GET STUCK IN A POOL WITH UNHEALTHY PEOPLE THE EMPLOYERBASED INSURANCE SYSTEM ALONG WITH THE PROTECTIONS OFFERED BY ERISA HAS ALLOWED ALMOST HALF THE POPULATION MOSTLY MAJOR CORPORATIONS AND THEIR UNIONIZED EMPLOYEES TO OPT OUT OF BEING POOLED WITH THE UNHEALTHY WASHINGTON STATE FOR EXAMPLE IS NOW DELAYING ITS PLANS TO SET UP A HIGHRISK POOL FOR EXTREMELY SICK PEOPLE BECAUSE HALF THE EMPLOYEES IN THE STATE INCLUDING ALL OF BOEING CAN ESCAPE THE POOL THROUGH ERISA ONCE THESE MAJORCOMPANY EMPLOYEES ARE REMOVED FROM THE POOL WHO IS LEFT ONLY EMPLOYEES OF SMALL BUSINESSES THE SELFEMPLOYED AND THE UNEMPLOYED PLUS THE VARIOUS PEOPLE WITH SERIOUS MEDICAL CONDITIONS WHO ARE NOT ELIGIBLE FOR MEDICAID OR MEDICARE LEFT WITH THIS MUCH NARROWER POOL INSURANCE COMPANIES HAVE PURSUED TWO STRATEGIES FIRST THEY CHERRY PICK SCREENING PEOPLE CAREFULLY TO FORM SMALL POOLS OF RELATIVELY HEALTHY PEOPLE THIS IS THE SOURCE OF MR CLINTON'S FLORIDA ANECDOTE SECOND THEY OFFER A VASTLY INFERIOR PRODUCT HEALTH INSURANCE THAT IS NONRENEWABLE FROM YEAR TO YEAR AND THUS ALLOWS THEM TO DISCONTINUE COVERAGE WHEN PEOPLE GET SERIOUSLY ILL NO OTHER INSURANCE FIELD HAS THIS PROBLEM AFTER ALL LIFE INSURANCE COMPANIES CAN'T CANCEL YOUR POLICY AS YOU APPROACH DEATH THE SOLUTION TO THESE ANOMALIES WOULD BE TO WIDEN THE RISK POOLS BY 1 KNOCKING AWAY THE TAX ADVANTAGES TO EMPLOYERPROVIDED INSURANCE AND 2 ELIMINATING THE ERISA EXEMPTION YET THE CLINTONS ARE MOVING IN EXACTLY THE OPPOSITE DIRECTION THEY ARE 1 TRYING TO FORCE EVERYONE INTO AN EMPLOYERBASED SYSTEM AND 2 ALLOWING LARGER EMPLOYERS ONCE AGAIN TO OPT OUT THROUGH SELFINSURANCE GIVEN THE CERTAIN FAILURE OF THIS STRATEGY THE CLINTONS WILL BE LEFT ONLY WITH THEIR HAMFISTED EFFORTS AT PRICE CONTROLS PLUS THE CONTINUING DEMONIZATION OF DOCTORS AND INSURANCE COMPANIES MR TUCKER COVERS HEALTH CARE FOR INSIGHT MAGAZINE 9311040050 931104 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 15/16 LOW 3 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 41 DAYS 308 42 TO 62 DAYS 335 63 TO 149 DAYS 337 150 TO 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 339 60 DAYS 339 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 272 TWO MONTHS 275 THREE MONTHS 283 SIX MONTHS 298 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 340 THREE MONTHS 345 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 332 60 DAYS 329 90 DAYS 329 120 DAYS 329 150 DAYS 330 180 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 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 646 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 1 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 311 13 WEEKS 325 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 692 60 DAYS 702 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 692 60 DAYS 702 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9311040049 931104 CORRECTIONS & AMPLIFICATIONS DEUTSCH/DWORIN A NEW YORK ADVERTISING AGENCY WAS DROPPED BY G HEILEMAN BREWING CO IN AUGUST YESTERDAY'S ADVERTISING COLUMN INCORRECTLY SAID THAT THE AGENCY IS STILL HANDLING HEILEMAN'S COLT 45 MALT LIQUOR ACCOUNT 9311040048 931104 CREDIT MARKETS YIELD ON 30YEAR TREASURY CLIMBS TO 610 DRIVEN AGAIN BY SIGNS OF ECONOMIC STRENGTH BY LESLIE SCISM AND ABBY SCHULTZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK LONGBOND YIELDS JUMPED AGAIN YESTERDAY CONTINUING A TWOWEEK CLIMB PROPELLED BY UNEXPECTEDLY STRONG ECONOMIC DATA THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED 5/8 POINT OR 625 FOR A BOND WITH 1000 FACE VALUE TO 101 28/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF PRICE ROSE TO 610 FROM 606 ON TUESDAY THE YIELD HAS MARCHED UPWARD SINCE OCT 15 WHEN IT HIT 579 THE LOWEST LEVEL SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF 30YEAR BONDS IN 1977 DURING THE PAST TWO WEEKS THE LONG BOND'S PRICE HAS SUNK MORE THAN FOUR POINTS OR 40 FOR A BOND WITH 1000 FACE VALUE AS BOND BUYERS FRETTED THAT AN INCREASINGLY ROBUST ECONOMY WOULD LEAD TO HIGHER INFLATION INFLATION ERODES THE VALUE OF FIXEDINCOME INVESTMENTS I WOULD SAY THE MARKET HAS TURNED DECIDEDLY NEGATIVE LARRY LEUZZI HEAD OF FIXED INCOME AT SG WARBURG SAID I DON'T THINK WE'RE GOING TO SEE THE BOND TURN TO 65 FOR EXAMPLE BUT I THINK IT WOULD TAKE AN EXCEPTIONALLY WEAK EMPLOYMENT REPORT TO GET DEBT PRICES BACK IN THE RANGE THAT WE BECAME COMFORTABLE WITH OVER THE LAST COUPLE MONTHS HE WAS REFERRING TO THE US LABOR DEPARTMENT'S SCHEDULED RELEASE ON FRIDAY OF OCTOBER'S NONFARM PAYROLL REPORT AN IMPORTANT INDICATOR OF ECONOMIC PERFORMANCE YESTERDAY THE US TREASURY ANNOUNCED IT WOULD SELL 29 BILLION IN NOTES AND 14 BILLION IN CASHMANAGEMENT BILLS IN ITS MIDQUARTER REFUNDING NEXT WEEK TO RAISE ABOUT 108 BILLION IN NEW CASH THE REFUNDING WILL CONSIST OF 17 BILLION IN THREEYEAR NOTES AND 12 BILLION IN 10YEAR NOTES THE TREASURY LAST QUARTER ISSUED 165 BILLION OF THREEYEAR NOTES AND 11 BILLION OF 10YEAR NOTES THE INCREASE IS PART OF THE TREASURY'S POLICY OF SHIFTING ITS DEBT FINANCING TO SHORTERTERM ISSUES IN HOPES OF REDUCING FEDERAL INTEREST EXPENSE WHILE AN INCREASE WAS EXPECTED BY INVESTORS THE AMOUNTS WERE HIGHER THAN ANTICIPATED AND CONTRIBUTED TO A PRICE DECLINE FOR THE MOST RECENTLY ISSUED 10YEAR NOTE ITS PRICE FELL NEARLY 1/4 POINT YESTERDAY TO 100 25/32 FOR A YIELD OF 563 THAT WAS UP FROM 56 TUESDAY YESTERDAY'S TRADING WAS GENERALLY LIGHT DOMINATED BY TRADERS CLOSING OUT ARBITRAGE STRATEGIES THAT INVOLVED HEAVILY SELLING THE 30YEAR TREASURY SAID MEAD BRIGGS A TRADING MANAGER FOR DEUTSCHE BANK GOVERNMENT SECURITIES THE SLOWER ACTIVITY WAS IN CONTRAST TO THAT OF MONDAY WHEN INSTITUTIONAL CUSTOMERS SUCH AS MUTUALFUND MANAGERS SWAMPED DEALERS WITH SALES THE MANAGERS' FRENZIED SELLING WAS PROMPTED BY RECENT DATA SHOWING STRONGERTHANANTICIPATED ECONOMIC GROWTH REPORTS ANNOUNCED YESTERDAY CONTINUED THAT TREND BUT THE LEVELS GENERALLY WERE ANTICIPATED AND THUS DIDN'T PROMPT MONEY MANAGERS TO SELL MORE HOLDINGS TRADERS SAID AT MIDDAY THE FEDERAL RESERVE BOARD SAID IN ITS BEIGE BOOK REPORT THAT ECONOMIC GROWTH CONTINUED AT A SLOW TO MODERATE PACE ECHOING THE ASSESSMENT OF ITS LAST TWO RELEASES THE REPORT HOWEVER INDICATED THAT CHRISTMAS SALES THIS YEAR COULD BE WEAK MR LEUZZI OF WARBURG NOTED THAT WOULD KEEP INFLATION IN CHECK A SENTIMENT LARGELY BUILT INTO THE MARKET ALSO YESTERDAY THE BIG THREE AUTO MAKERS REPORTED THAT AUTOMOBILES SOLD ROBUSTLY IN LATE OCTOBER WHILE LIGHT TRUCKS REACHED THE HIGHEST RATE THEY HAVE AVERAGED IN THREE YEARS IT WAS A CONSOLIDATION DAY AFTER SEVERAL DAYS OF PRETTY SIGNIFICANT SELLOFFS MR BRIGGS SAID RELATIVE TO THE LAST FEW TRADING DAYS BOND PRICES WERE MORE OR LESS STABLE THE PRICES ARE MOVING AROUND BUT IT'S SLOWER THAN YESTERDAY SAID GIB CLARK SENIOR VICE PRESIDENT OF GOVERNMENT TARDING AT DAIWA SECURITIES AMERICA AMONG THOSE SELLING IN RECENT DAYS WAS ANTHONY JIORLE A VANGUARD GROUP VICE PRESIDENT IN THE FIXEDINCOME GROUP WE JUST THINK THE NEXT BIG MOVE IN RATES WILL BE TO HIGHER LEVELS HE SAID WE'RE SEEING PICKUP IN THE ECONOMY THERE SEEMS TO BE A CHANGE IN MARKET PSYCHOLOGY SO IT WOULDN'T BE SURPRISING TO SEE RATES CONTINUE TO DRIFT HIGHER TO PROTECT HIMSELF AGAINST RISING INTEREST RATES MR JIORLE HAS SOLD 10YEAR AND 15YEAR TREASURYS IN RECENT DAYS TO SHORTEN THE AVERAGE WEIGHTED MATURITY OF HIS GOVERNMENTSECURITIES PORTFOLIO TO 10 YEARS WHILE HIS BENCHMARK INDEX IS AT 105 YEARS BUT OTHERS STILL BELIEVE LONGTERM RATES WILL GO DOWN AGAIN AND THEY'VE HELD ON TO THEIR SECURITIES AS OTHERS RUSHED TO SELL THERE'S REALLY NO SIGNS OF INFLATIONARY PRESSURES SAID ED LABENSKI PRESIDENT OF IDS FIXED INCOME ADVISERS I DON'T THINK THE MARKET HAS COME TO APPRECIATE THE FACT THAT WE'LL HAVE INFLATION WELL BELOW 3 THIS YEAR AND 3 NEXT YEAR IN FACT HE BELIEVES THERE ARE DISINFLATIONARY PRESSURES ON THE AMERICAN ECONOMY RESULTING FROM THE GLOBALIZATION OF BUSINESS ANOTHER NAYSAYER ON HIGHER INFLATION IS MARGARET PATEL WHO HEADS CORPORATE JUNKBOND AND GOVERNMENTSEOS FOR BOSTON SECURITY COUNSELORS SHE SAID THAT FEARS OF A BIG CORRECTION IN THE LONGBOND MARKET ARE UNWARRANTED BECAUSE THERE'S STILL TOO MUCH EXCESS CAPACITY IN THE SYSTEM TO ALLOW INFLATION TO GET GOING SHE BELIEVES THIS TO BE A BUYING OPPORTUNITY I DON'T THINK THE LONG BOND WILL CORRECT TO 65 IN FACT SHE BELIEVES THE LONGBOND YIELD WILL FALL NEXT WEEK AFTER THE TREASURY AUCTIONS THE REASON AS PART OF THE FEDERAL GOVERNMENT'S PLAN TO SHIFT FINANCING TO SHORTERTERM BONDS THE QUARTERLY AUCTION WON'T INVOLVE 30YEAR BONDS SHE THINKS A SHORTAGE OF THE LONGTERM BONDS WILL RESULT EVEN THOUGH EVERYONE KNOWS THERE WON'T BE A 30YEAR AUCTION THE FULL EFFECT OF IT MAY NOT BE REALIZED UNTIL AFTER THE AUCTION WHEN THERE ISN'T THIS NEW PORTION OF BONDS TO BUY SHE SAID THE 10YEAR NOTE FELL UNDER SOME PRESSURE BY LATE AFTERNOON FOLLOWING THE TREASURY'S ANNOUNCEMENT THAT IT WOULD SELL 12 BILLION IN 10YEAR NOTES DUE AUG 15 2003 AS PART OF ITS QUARTERLY REFUNDING ON WEDNESDAY NOV 10 ON TUESDAY IT WILL SELL 17 BILLION IN THREEYEAR NOTES DUE NOV 15 1996 IN MINIMUM DENOMINATIONS OF 5000 MOST ANALYSTS HAD EXPECTED THE TREASURY WOULD SELL 11 BILLION TO 1125 BILLION IN 10YEAR NOTES THE SIZE OF THE THREEYEAR NOTE AUCTION WAS IN LINE WITH EXPECTATIONS WHAT'S NOTEWORTHY ABOUT THE 10YEAR NOTE AUCTION IS THAT THE TREASURY IS REOPENING THE CURRENT 5 3/4 NOTE OF AUGUST 2003 BECAUSE OF THE CURRENT SHORTGAGE IN THE SECURITY THIS HAS BEEN REFLECTED IN THE REPURCHASE OR REPO MARKET WHERE THE 10YEAR NOTE HAS BEEN TRADING FOR AN INTEREST RATE OF ZERO DEALERS GO TO THE REPO MARKET TO BORROW SECURITIES IN EXCHANGE FOR LOW RATE LOANS THE 10YEAR HAS BEEN SO SCARCE THAT DEALERS HAVE BEEN ESSENTIALLY GRANTING INTERESTFREE LOANS IN EXCHANGE FOR THE TEMPORARY USE OF THE SECURITIES IN WHENISSUED TRADING THE 10YEAR NOTE IS YIELDING 5658 AND THE THREEYEAR NOTE IS YIELDING 4503 THE CUSIP NUMBERS ARE 912827M74 FOR THE THREEYEAR NOTES AND 912827L83 FOR THE 10YEAR NOTES NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EST ON THE DAY OF THE AUCTION AT FEDERAL RESERVE BANKS OR BRANCHES ECONOMISTS POLLED BY DOW JONES CAPITAL MARKETS REPORT EXPECT ON AVERAGE THAT THE FRIDAY EMPLOYMENT REPORT WILL SHOW THAT JOBS ARE UP BY 154000 MR LEUZZI SAID THE REPORT WOULD HAVE TO BE FAR WEAKER SAY AN INCREASE OF ONLY 100000 OR LESS TO SEND PRICES SKYWARD AGAIN IF FRIDAY'S EMPLOYMENT NUMBER IS WEAKER THAN EXPECTED PRICES IN THE MARKET COULD HEAD BACK UP SOME PLAYERS MAY WAIT UNTIL NEXT WEEK'S AUCTIONS HOWEVER TO GET INVOLVED SAID A GOVERNMENT TRADER AT A PRIMARY DEALER HERE BUT HE NOTED THE AUCTIONS WILL TAKE PLACE AMID THE RELEASE OF CRUCIAL INFLATION DATA MEANING SOME INVESTORS MAY WAIT BEFORE COMMITTING TO BUY THE NEW SECURITIES OCTOBER'S PRODUCER PRICE INDEX WILL BE RELEASED NEXT TUESDAY AND THE CONSUMER PRICE INDEX WILL BE RELEASED WEDNESDAY I THINK PEOPLE WILL WAIT TO SEE THE NUMBERS THE TRADER SAID MUNICIPAL BONDS WERE NARROWLY MIXED AT THE CLOSE HELPED BY SCATTERED PURCHASES SELLING THAT OCCURRED SPORADICALLY FOR MORE THAN A WEEK FINALLY EBBED BUT SOME MUNI SPECIALISTS SAY THE MARKET MAY HAVE MORE ROOM TO FALL ON CONCERNS ABOUT EVIDENCE OF ECONOMIC STRENGTH AT CLOSE OF TRADING THE FLORIDA BOARD OF EDUCATION'S 5125 OF 2018 CAPITAL OUTLAY PUBLICEDUCATION REFUNDING BONDS WERE 3/8 LOWER AT 95 3/8 TO 95 7/8 YIELDING 543 BUT THE HAWAII DEPARTMENT OF BUDGET AND FINANCE'S 545 OF 2023 SPECIALPURPOSE MORTGAGE REVENUE BONDS FINISHED 1/4 HIGHER AT 98 TO 98 3/4 YIELDING 554 IN THE PRIMARY SECTOR A FEW ISSUERS TAPPED THE MARKET THE LAFAYETTE LA PUBLIC POWER AUTHORITY 1134 MILLION SERIES 1993 ELECTRIC REVENUE REFUNDING BONDS WERE BROUGHT TO THE MARKET BY A SMITH BARNEY SHEARSON GROUP YIELDS RANGE FROM 280 IN 1994 TO 545 IN 2012 IN COMPETITIVE BIDDING THE UNIVERSITY OF CALIFORNIA'S 1871 MILLION 1993 CERTIFICATES OF PARTICIPATION WERE WON BY A BANK OF AMERICA GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 55745 YIELDS RANGE FROM 320 IN 1995 TO 565 IN 2020 TWO YANKEE OFFERINGS WERE BROUGHT TO THE BOND MARKET AMONG 123 BILLION IN CORPORATE AND 1 BILLION OF AGENCY DEBT ISSUED YESTERDAY NATIONAL BANK OF HUNGARY AND ALCAN ALUMINIUM THE CANADIAN ALUMINUM PRODUCER EACH PRICED YANKEES WHICH ARE DOLLARDENOMINATED OFFERINGS SOLD IN THE US BY FOREIGN ISSUERS PNC BANK NA ISSUED 500 MILLION OF ONEYEAR SHORTTERM BANK NOTES SOUTHERN CALIFORNIA GAS HELD A COMPETITIVE BID WON BY CS FIRST BOSTON FOR 175 MILLION OF 32YEAR DEBT THE JUNKBOND MARKET'S SOLE ISSUE WAS BY ABBEY HEALTHCARE GROUP WHICH INCREASED THE SIZE OF ITS ISSUE TO 200 MILLION FROM 150 MILLION AND PRICED THE DEAL BELOW THE EXPECTED YIELD RANGE SYNDICATE OFFICIALS SAID TRADING IN THE INVESTMENTGRADE MARKET WAS QUIET YIELD SPREADS RELATIVE TO TREASURYS REMAINED UNCHANGED EXCEPT FOR BANK AND FINANCE COMPANIES WHICH WIDENED SLIGHTLY A TRADER SAID MORTGAGE SECURITIES HELD FLAT TO SLIGHTLY BETTER LEVELS YESTERDAY SHOWING MUCH LESS PLAY THAN A VOLATILE TREASURY MARKET THERE WERE STIRRINGS IN THE ASSETBACKED MARKET HOWEVER WHERE SEVERAL COMPANIES ARE OFFERING SECURITIES BACKED BY HOMEEQUITY LOANS AMONG PRICES OF 6 1/2 COUPONS FOR NOVEMBER DELIVERY GINNIE MAES WERE DOWN 1/32 NEAR THE CLOSE AT 99 24/32 BOTH FREDDIE MAC GOLDS AND FANNIE MAES WERE UP 1/32 AT 99 31/32 AND 99 23/32 RESPECTIVELY THE DAY'S STRONGEST PERFORMER GINNIE MAE 8 1/2 S FOR NOVEMBER DELIVERY WERE UP 5/32 TO TRADE AT 105 18/32 AS EXPECTED THE MORTGAGE MARKET OUTPERFORMED TREASURYS AS RISING RATES STEMMED FEARS OF PREPAYMENTS OR THE EARLY CALL OF A MORTGAGE SECURITY DUE TO THE REFINANCING OF THE UNDERLYING HOME LOAN THE 10YEAR TREASURY NOTE A BENCHMARK FOR MORTGAGE ISSUES WAS DOWN 6/32 AT 100 27/32 TO YIELD 563 DEALERS HUNTING COLLATERAL FOR RECENTLY ANNOUNCED REAL ESTATE INVESTMENT CONDUITS ALSO SUPPORTED THE MARKET MORTGAGE UNDERWRITERS CREATE REMICS BY CARVING UP SECURITIES INTO VARIOUS TRANCHES EACH WITH ITS OWN INVESTMENT CHARACTERISTICS IF UNDERWRITERS DON'T HAVE ENOUGH OF A CERTAIN ISSUE THEY MUST BUY IT IN THE OPEN MARKET FROM OTHER DEALERS OR INVESTORS LUCINDA HARPER CONTRIBUTED TO THIS ARTICLE 9311040047 931104 BUSINESS BRIEF READER'S DIGEST ASSOCIATION INC NET ROSE SHARPLY IN QUARTER DESPITE CURRENCY CHANGES READER'S DIGEST ASSOCIATION INC REPORTED THAT NET INCOME MORE THAN DOUBLED IN THE FISCAL FIRST QUARTER EVEN THOUGH REVENUE AND OPERATING EARNINGS DECLINED DUE TO CHANGES IN FOREIGN EXCHANGE RATES THE PLEASANTVILLE NY PUBLISHER ALSO PLANS TO CUT 200 JOBS IN ITS US WORK FORCE TO KEEP IT IN LINE WITH REVENUES SAID CHAIRMAN GEORGE V GRUNE FOR THE QUARTER ENDED SEPT 30 THE COMPANY REPORTED NET INCOME OF 369 MILLION OR 31 CENTS A SHARE UP FROM 167 MILLION OR 14 CENTS A SHARE A YEAR EARLIER THE LATEST PERIOD INCLUDED A CHARGE OF 258 MILLION OR 23 CENTS A SHARE AND THE YEARAGO PERIOD INCLUDED A CHARGE OF 509 MILLION OR 42 CENTS A SHARE BOTH FOR THE CUMULATIVE EFFECT OF ACCOUNTING CHANGES EXCLUDING THE CHANGES EARNINGS FOR THE QUARTER FELL 7 TO 628 MILLION REVENUE SLIPPED 6 TO 6372 MILLION FROM 680 MILLION OPERATING PROFIT FELL 23 TO 682 MILLION FROM 881 MILLION BESIDES THE IMPACT OF FOREIGN EXCHANGE RATES THE COMPANY SAID OPERATING PROFIT WAS OFF LAST YEAR'S PACE DUE TO HIGHER PROMOTIONAL SPENDING IN VARIOUS WORLDWIDE MARKETS 9311040046 931104 BUSINESS BRIEF NORCEN ENERGY RESOURCES LTD JOB IS WON TO BOOST OUTPUT ON VENEZUELAN OIL PROPERTY NORCEN ENERGY RESOURCES LTD CALGARY ALBERTA SAID IT WON A 20YEAR CONTRACT TO IMPROVE PRODUCTION FROM A VENEZUELAN OIL PROPERTY ON WHICH MOST OF THE OIL WELLS AREN'T WORKING THE OIL PRODUCER SAID A CONSORTIUM IN WHICH NORCEN WILL HOLD A 45 INTEREST WILL SPEND 150 MILLION IN THE PROJECT'S FIRST THREE YEARS IT SAID THE CONSORTIUM WILL AIM TO BOOST OIL OUTPUT FROM THE PROPERTY BY 15000 BARRELS A DAY FROM THE CURRENT LEVEL OF 9000 BARRELS A DAY NORCEN WHICH IS 42OWNED BY TORONTO RESOURCES COMPANY NORANDA INC SAID THE CONSORTIUM WILL EARN AN OPERATING FEE FOR EACH BARREL OF OIL PRODUCED FROM THE PROJECT IT SAID THAT THE CONSORTIUM WILL RECOVER CAPITAL EXPENDITURES PLUS INTEREST OVER 10 YEARS AND THAT IT EXPECTS THE VENEZUELAN CONTRACT TO TAKE EFFECT DURING THE FIRSTQUARTER OF 1994 THE COMPANY ESTIMATED THAT 134 MILLION BARRELS OF PROVEN AND PROBABLE OIL RESERVES REMAIN ON THE VENEZUELAN OIL PROPERTY THE OTHER CONSORTIUM PARTNERS ARE COMPANIA NAVIERA PEREZ COMPANC SA WITH 45 AND SERVICIOS COROD DE VENEZUELA SA WITH 10 NORCEN SAID 9311040045 931104 BUSINESS BRIEF APPLIED INNOVATION INC NET FOR 3RD PERIOD 9 MONTHS IS SLASHED STOCK SKIDS 12 APPLIED INNOVATION INC SAID IT REVISED ITS THIRDQUARTER AND NINEMONTH NET INCOME AFTER DISCOVERING IT INCORRECTLY ACCOUNTED FOR A TAX BENEFIT ITS STOCK PRICE TUMBLED 12 APPLIED BASED IN WORTHINGTON OHIO SAID IT ACTUALLY EARNED 1 MILLION OR 27 CENTS A SHARE IN THE THIRD QUARTER AND 21 MILLION OR 55 CENTS A SHARE IN THE NINE MONTHS THE REVISION CUT THE COMPANY'S THIRDQUARTER NET BY 359386 OR NINE CENTS A SHARE AND ITS NINEMONTH NET BY 529658 OR 14 CENTS A SHARE IN 1992 APPLIED EARNED 352491 OR 10 CENTS A SHARE IN THE THIRD QUARTER AND 612985 OR 17 CENTS A SHARE IN THE NINE MONTHS THE REVISED AMOUNTS STILL REPRESENT RECORDS FOR THE COMPANY BUT ITS STOCK PLUNGED YESTERDAY AFTER THE ANNOUNCEMENT TO CLOSE AT 44 A SHARE DOWN 625 IN TRADING ON THE NASDAQ STOCK MARKET APPLIED MAKES AND MARKETS INTERNAL DATA COMMUNICATIONSNETWORK SWITCHING PRODUCTS FOR THE TELECOMMUNICATIONS INDUSTRY 9311040044 931104 BUSINESS BRIEF CARNIVAL CORP CRUISE COMPANY TO FORM VENTURE WITH CONTINENTAL CARNIVAL CORP SAID IT WILL FORM A NEW HOTEL AND CASINO MANAGEMENT COMPANY WITH CONTINENTAL COS A PRIVATELY HELD MIAMI HOTEL MANAGEMENT COMPANY THE NEW COMPANY WILL OPERATE 65 HOTELS AND OTHER PROPERTIES ALREADY OWNED BY THE TWO COMPANIES IN THE US MEXICO AND OTHER MARKETS CARNIVAL A MIAMIBASED CRUISE COMPANY SAID IT WILL EVENTUALLY SPIN OFF 90 OF ITS INVESTMENT IN THE NEW COMPANY TO SHAREHOLDERS 9311040043 931104 BUSINESS BRIEF DOLE FOOD CO COMPANY AGREES TO ACQUIRE TWO FRUITJUICE PRODUCERS DOLE FOOD CO SAID IT AGREED TO ACQUIRE TWO FRUITJUICE MAKERS LOOZA DISTRIBUTION NV AND JUICE BOWL PRODUCTS INC FROM ABA HOLDING INC OF JAMESBURG NJ TERMS WEREN'T DISCLOSED DOLE A HOLDING COMPANY WITH INTERESTS IN FOOD PRODUCTION AND DISTRIBUTION REAL ESTATE DEVELOPMENT AND RESORTS SAID THE TWO COMPANIES HAD COMBINED SALES OF 90 MILLION FOR THE LAST 12 MONTHS ANALYSTS ESTIMATED THE VALUE OF THE TRANSACTION AT BETWEEN 40 MILLION AND 60 MILLION DOLE BASED IN WESTLAKE VILLAGE CALIF HAS SOUGHT TO LESSEN ITS DEPENDENCE ON THE BANANA BUSINESS LOOZA BASED IN BORGLOON BELGIUM PROVIDES JUICES TO HOTELS RESTAURANTS CAFES AND SUPERMARKETS IN MOST OF EUROPE ESPECIALLY FRANCE BELGIUM AND GERMANY JUICE BOWL BASED IN LAKELAND FLA PRODUCES AND MARKETS SINGLESERVE JUICE 9311040042 931104 BUSINESS BRIEF HIBERNIA CORP BANKING FIRM SAYS FED LIFTS LAST REGULATORY RESTRICTION HIBERNIA CORP SAID THE FEDERAL RESERVE BANK OF ATLANTA LIFTED THE LAST REGULATORY RESTRICTION ON THE COMPANY HIBERNIA HAS BEEN OPERATING UNDER FEDERAL RESTRICTION SINCE 1991 THE NEW ORLEANS BANKING CONCERN SAID THE RESTRICTION INCLUDED A REQUIREMENT FOR APPROVAL OF EXPENSES ABOVE A CERTAIN LEVEL THE ISSUANCE OF STOCK AND DIVIDEND PAYMENTS HIBERNIA SAID ITS IMPROVED PERFORMANCE PROMPTED THE MOVE IN THE FIRST NINE MONTHS THIS YEAR THE COMPANY HAD NET INCOME OF 34 MILLION COMPARED WITH 11 MILLION IN THE YEAREARLIER PERIOD 9311040041 931104 MOVE ON REGULATION OF THE MUNI MARKET VIEWED WITH CAUTION WASHINGTON GROUPS REPRESENTING GOVERNORS MAYORS AND COUNTY OFFICIALS URGED POLICY MAKERS TO PROCEED CAUTIOUSLY IN CONSIDERING STIFFER REGULATION OF THE MUNICIPAL BOND MARKET THE NATIONAL GOVERNORS ASSOCIATION THE NATIONAL LEAGUE OF CITIES AND THE NATIONAL ASSOCIATION OF COUNTIES FRETTED THAT ADDITIONAL REGULATIONS COULD RESULT IN ANOTHER COSTLY FEDERAL MANDATE ON STATE AND LOCAL GOVERNMENTS AND VOICED CONCERN THAT FOCUSING ON A FEW ISOLATED CASES OF ALLEGED IMPROPER PRACTICES COULD UNDERMINE INVESTOR CONFIDENCE GOVERNORS MAYORS AND COUNTY OFFICIALS HAVE BEEN A FORMIDABLE FORCE ON BONDMARKET REGULATORY ISSUES AND HELP EXPLAIN WHY MUNI ISSUERS REMAIN LARGELY EXEMPT FROM FEDERAL SECURITIES LAWS THE OFFICIALS COMMENTED SPECIFICALLY ON TWO LEADING TOPICS OF REGULATORY INTEREST POLITICAL CONTRIBUTIONS BY BONDMARKET PROFESSIONALS TO STATE AND LOCAL OFFICIALS AND WHAT REGULATORS AND SOME MARKET PARTICIPANTS INSIST IS INADEQUATE SECONDARYMARKET DISCLOSURE BY MANY MUNI BOND ISSUERS THE GROUPS SAID ELECTED OFFICIALS ULTIMATELY ARE RESPONSIBLE TO THE VOTERS ON THE POLITICAL CONTRIBUTIONS THEY RECEIVE AND ASSERTED THAT CAMPAIGNCONTRIBUTION DISCLOSURE IS PRIMARILY A TAXPAYER ISSUER RATHER THAN AN INVESTORPROTECTION ISSUE THEY SAID THAT THE SELFENFORCING VOLUNTARY SYSYEM OF DISCLOSURE HAS SERVED THE MARKET WELL AND THAT ANY CHANGES SHOULD FOLLOW COSTBENEFIT AND RISK ANALYSES THE OFFICIALS ALSO SAID THAT INFORMATION DISSEMINATION IN THE SECONDARY MARKET CAN BE IMPROVED WITHOUT IMPOSING NEW REGULATORY BURDENS ON ISSUERS BY WORKING WITHIN THE CURRENT REGULATORY FRAMEWORK THE GROUPS AIRED THEIR CONCERNS IN A LETTER TO HOUSE TELECOMMUNICATIONS SUBCOMMITTEE CHAIRMAN EDWARD MARKEY D MASS WHO IS MONITORING MUNI MARKET DEVELOPMENTS AND RELATED REGULATORY INITIATIVES 9311040040 931104 INTERNATIONAL BRIEF MARKS & SPENCER PLC BRITISH RETAILER SAYS PROFIT ROSE 21 FOR FISCAL 1ST HALF MARKS & SPENCER PLC REPORTED THAT PRETAX PROFIT ROSE 21 FOR THE SIX MONTHS ENDED SEPT 25 HELPED BY CONTINUED CONTROL OF COSTS STOCK AND CASH FLOW PROFIT ROSE TO 3078 MILLION 4534 MILLION FROM 2551 MILLION THE RESULTS WERE WELL ABOVE MARKET FORECASTS FOR A PROFIT OF ABOUT 290 MILLION THE BRITISH RETAILER LIFTED ITS DIVIDEND TO 25 PENCE A SHARE FROM 22 PENCE A SHARE SALES ROSE 82 TO 287 BILLION FROM 266 BILLION MARKS & SPENCER WARNED THOUGH THAT BRITAIN'S ECONOMIC RECOVERY REMAINS FRAGILE AND THAT TAX INCREASES AND THE POSSIBILITY OF A TOUGH GOVERNMENT BUDGET LATER THIS MONTH COULD INHIBIT THE FULL RECOVERY OF CONSUMER CONFIDENCE THE COMPANY SAID CHRISTMAS TRADING REMAINS VITAL TO THE OUTCOME OF THE FULL YEAR WHICH WILL BENEFIT FROM AN ADDITIONAL WEEK'S TRADING IN THE SECOND HALF MARKS & SPENCER SAID CAPITAL EXPENDITURE WILL RISE TO 350 MILLION IN ITS CURRENT FISCAL YEAR AND REMAIN AT THAT LEVEL FOR TWO TO THREE YEARS 9311040039 931104 WHAT'S NEWS WORLDWIDE CLINTON SAID NO CONCLUSION COULD BE DRAWN FROM THREE DEMOCRATIC DEFEATS THE PRESIDENT INSISTED THAT VOTERS WHO REJECTED DEMOCRATS IN TUESDAY'S HIGHVISIBILITY ELECTIONS FOR GOVERNORS OF NEW JERSEY AND VIRGINIA AND FOR MAYOR OF NEW YORK WERE CASTING BALLOTS FOR CHANGE NOT AGAINST HIS ADMINISTRATION OR PARTY BUT VOTERS' ANTIINCUMBENT FEVER COULD COMPLICATE CLINTON'S LEGISLATIVE AGENDA WITH SOME WASHINGTON LAWMAKERS BECOMING EDGY ABOUT CONTROVERSIAL ISSUES A DISGRUNTLED ELECTORATE SUPPORTED ANTICRIME MEASURES CURBS ON FUTURE TAXES AND TERM LIMITS IN A NUMBER OF STATES BUT THEY VOTED DOWN A CALIFORNIA INITIATIVE FOR TAXFUNDED SCHOOL VOUCHERS BY A HEFTY MARGIN IN NEW YORK GIULIANI BECAME THE FIRST REPUBLICAN TO BE ELECTED MAYOR SINCE 1965 HE DEFEATED THE CITY'S FIRST BLACK MAYOR DINKINS BY A SLIM MARGIN IN THE OVERWHELMINGLY DEMOCRATIC CITY CALIFORNIA FIREFIGHTERS STEPPED UP THEIR ASSAULT ON AN ARSON FIRE THAT HAS DESTROYED MORE THAN 200 HOMES IN THE MALIBU AREA HELICOPTERS DROPPED BUCKETS OF OCEAN WATER ON THE BLAZE WHICH STARTED EARLY TUESDAY AND CALMER WINDS ALSO HELPED THE FIREFIGHTING EFFORT HOWEVER THE FASTMOVING FIRE REMAINED OUT OF CONTROL SEN PACKWOOD DECLARED HE WOULD SERVE OUT HIS FIFTH TERM AND FIGHT A SUBPOENA FOR HIS DIARIES IN COURT THE OREGON REPUBLICAN SAID HE WAS ABSOLUTELY NOT GUILTY OF MISCONDUCT THE SENATE VOTED TUESDAY TO SEEK COURT ENFORCEMENT OF THE SUBPOENA AS PART OF A PROBE OF ALLEGED SEXUAL MISCONDUCT AND POSSIBLE CRIMINALITY RUSSIA'S DEFENSE MINISTER INDICATED MOSCOW WOULD RESERVE THE RIGHT TO USE NUCLEAR WEAPONS FIRST IN CERTAIN CIRCUMSTANCES GRACHEV SPOKE AT A NEWS CONFERENCE TO DISCUSS A NEW POSTCOLD WAR MILITARY DOCTRINE THE DOCUMENT STATES THAT THE GREATEST MILITARY THREAT TO RUSSIA NOW IS FROM LOCAL ARMED CONFLICTS WASHINGTON BELIEVES IT WILL BE DIFFICULT FOR ISRAEL AND THE PLO TO COMPLETE AN ACCORD ON PALESTINIAN SELFRULE BEFORE A DEC 13 DEADLINE BUT THE US HASN'T ANY PLANS TO GET INVOLVED NOW IN NEGOTIATIONS A SENIOR US OFFICIAL SAID THOUGH THE TALKS BROKE UP TUESDAY IN TABA EGYPT THEY HAVEN'T COLLAPSED THE OFFICIAL SAID HAITI'S EXILED PRESIDENT RULED OUT FURTHER NEGOTIATIONS WITH THE NATION'S MILITARY OFFICIALS OVER ANYTHING BUT THE REMOVAL OF ARMY CHIEF CEDRAS AND OTHER COUP LEADERS FROM POWER ARISTIDE'S STATEMENT APPEARED TO HARDEN THE STALEMATE BETWEEN THE MILITARY AND THE FRAGILE ARISTIDEAPPOINTED INTERIM GOVERNMENT IN PORTAUPRINCE ANGOLA'S UNITA REBELS AGREED IN PRINCIPLE TO WITHDRAW TROOPS FROM THE TERRITORIES THEY HAVE OCCUPIED SINCE LOSING UNSUPERVISED ELECTIONS A YEAR AGO A UN SPOKESMAN SAID IN RESPONSE THE ANGOLA GOVERNMENT REACTED POSITIVELY TO DECLARING A CEASEFIRE AND PEACE TALKS ARE EXPECTED TO RESUME SOON IN ZAMBIA ACCORDING TO THE UN MUSLIMLED GOVERNMENT TROOPS MARCHED THROUGH AN ISOLATED CROAT DISTRICT IN BOSNIA SENDING 15000 CIVILIANS FLEEING INTO THE COUNTRYSIDE THE SOLDIERS ENTERED VARES NORTH OF SARAJEVO AFTER CAPTURING SEVERAL OTHER CROAT VILLAGES UN OFFICIALS SAID NORTH KOREA MUST MAKE THE NEXT MOVE IN AN INTERNATIONAL STANDOFF OVER THAT NATION'S NUCLEAR PROGRAM ASPIN SAID THE DEFENSE SECRETARY SPOKE IN SEOUL WHERE HE TOLD SOUTH KOREA'S FOREIGN MINISTER THAT THE US IS DETERMINED NOT TO LET THE PYONGYANG NUCLEAR ISSUE DRAG ON INDEFINITELY A HOUSE PANEL NARROWLY SUPPORTED CLINTON'S PLAN TO KEEP US TROOPS IN SOMALIA UNTIL MARCH 31 REJECTING A REPUBLICAN ATTEMPT TO FORCE THEM OUT BY JAN 31 THE HOUSE FOREIGN AFFAIRS COMMITTEE APPROVED THE MEASURE BY A 2221 VOTE PAKISTANI POLICE ARRESTED THE YOUNGER BROTHER OF PRIME MINISTER BHUTTO WHEN HE ARRIVED IN KARACHI FROM SYRIA AFTER 16 YEARS OF SELFIMPOSED EXILE HE HAS BEEN ACCUSED OF BELONGING TO AN UNDERGROUND GROUP LINKED TO BOMBINGS IN SEVERAL CITIES AND THE HIJACKING OF AN AIRLINER IN 1981 HUNDREDS OF BODIES HAVE BEEN FOUND FLOATING IN A RIVER NEAR TANZANIA'S BORDER WITH BURUNDI AND THE NUMBER OF BURUNDIANS TAKING REFUGE IN TANZANIA HAS TOPPED 350000 TANZANIAN RADIO SAID BURUNDI'S ARMY STAGED A BLOODY COUP ON OCT 21 THAT SPARKED TRIBAL MASSACRES 9311040038 931104 BUSINESS BRIEF LONE STAR INDUSTRIES INC TWO CLASSACTION LAWSUITS ARE SETTLED FOR 40 MILLION LONE STAR INDUSTRIES INC SAID A 40 MILLION SETTLEMENT WAS REACHED IN TWO CLASSACTION LAWSUITS BROUGHT AGAINST THE COMPANY AND CERTAIN PAST AND PRESENT OFFICERS ALLEGING THAT THE COMPANY PROVIDED MISLEADING FINANCIAL INFORMATION THE SUITS INVOLVE INVESTORS WHO PURCHASED THE STAMFORD CONN CEMENT COMPANY'S COMMON STOCK BETWEEN FEB 8 1988 AND NOV 16 1989 AND BETWEEN NOV 16 1989 AND DEC 9 1990 THE SHAREHOLDERS IN BOTH CASES SAID THEY ACQUIRED LONE STAR STOCK BASED ON STATEMENTS ALLEGEDLY MADE BY THE COMPANY OR SOME OF ITS OFFICERS RELATING TO THE COMPANY'S FINANCIAL POSITION TERMS OF THE SETTLEMENT INCLUDE A 40 MILLION PAYMENT BY THE LIABILITY INSURERS OF LONE STAR'S DIRECTORS AND OFFICERS LONE STAR SAID IT HAD BEEN DISMISSED WITHOUT PREJUDICE IN ONE OF THE CASES AND WASN'T NAMED IN THE SECOND SUIT WHICH STARTED AFTER LONE STAR FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION FROM CREDITORS IN DECEMBER 1990 THE SETTLEMENT ISN'T AN ADMISSION OF LIABILITY OR WRONGDOING BY THE COMPANY OR OFFICIALS A LONE STAR SPOKESMAN SAID 9311040037 931104 INTERNATIONAL BRIEF J SAINSBURY PLC PRETAX PROFIT CLIMBS 11 AT BRITISH FOOD RETAILER J SAINSBURY PLC ONE OF BRITAIN'S BIGGEST FOOD RETAILERS REPORTED AN 11 RISE IN ITS PRETAX PROFIT FOR THE 28 WEEKS TO SEPT 25 WITH IMPROVED PERFORMANCES FROM ALL PARTS OF THE COMPANY PRETAX PROFIT JUMPED TO 434 MILLION 6393 MILLION FROM 3911 MILLION IN THE YEAREARLIER PERIOD SALES ALSO ROSE 11 TO 587 BILLION FROM 529 BILLION CHAIRMAN DAVID SAINSBURY DESCRIBED THE RESULTS AS VERY SATISFACTORY IN THE FACE OF HIGHLY COMPETITIVE MARKET CONDITIONS AND ATTRIBUTED THE INCREASE TO THE COMPANY'S PRICE COMPETITIVENESS AND TIGHT COST CONTROLS HE SAID THAT SALES IN THE SECOND HALF OF ITS FINANCIAL YEAR SO FAR HAD MAINTAINED THE TREND OF THE FIRST HALF HE ANNOUNCED HOWEVER THAT THE COMPANY HAD CUT THE PRICES OF AROUND 300 OF ITS KEY OWNBRAND PRODUCTS ACCOUNTING FOR AROUND 10 OF SALES AND CONCEDED THAT THIS WOULD AFFECT ITS GROSS PROFIT MARGINS 9311040036 931104 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG ON THE OLD APPLE TREE I AM TYPING THESE WORDS INTO A TELEVISION SET A TELEVISION SET WITH A KEYBOARD ATTACHED JUST NOW AS I WRITE THIS A NEW EPISODE OF STAR TREK IS PLAYING ON THE DEVICE WHICH LIKE MANY STANDARD TV SETS IS A BLACK ONEPIECE AFFAIR WITH BUILTIN STEREO SPEAKERS VOLUME AND BRIGHTNESS CONTROLS UP FRONT AND A SLEEK INFRARED REMOTE CONTROL DID I MENTION IT ALSO DISPLAYS CLOSEDCAPTIONS ON TV PROGRAMS ACCEPTS CDROM COMPUTER DISKS SPECIAL HIGHCAPACITY PLATTERS CONTAINING VIDEO AND AUDIO SOFTWARE AND PLAYS MUSIC CDS CLEARLY THIS IS NO ORDINARY TV SET IT'S A NEW AND UNUSUAL 2100 COMPUTER FROM APPLE COMPUTER CALLED MACINTOSH TV THAT'S A COMPLETE MULTIMEDIA CENTER IN ONE INTEGRATED BOX MACINTOSH TV IS THE MORE RADICAL OF A PAIR OF ONEPIECE MULTIMEDIA COMPUTERS APPLE HAS JUST RELEASED AIMED AT HOMES SMALL OFFICES AND COLLEGEDORMITORY ROOMS THE OTHER MODEL CALLED THE PERFORMA 550 IS ESSENTIALLY THE SAME MACHINE WITHOUT THE TV FUNCTION IN A TRADITIONAL GRAY COLOR INSIDE THE MACINTOSH TV LURKS A FULLY CAPABLE MEDIUMPOWERED MAC COMPUTER WITH FIVE MEGABYTES OF MEMORY AND A 160MEGABYTE HARD DISK MORE THAN ADEQUATE FOR HOME USE THE BUILTIN DISPLAY IS A SHARP FULLSIZED SONY TRINITRON 14INCH COLOR MONITOR NOT THE LITTLE SCREEN APPLE DESIGNED INTO THE EARLIER ONEPIECE MACS THE COMPUTER CAN RUN SERIOUS SOFTWARE SUCH AS THE WORD PROCESSOR I'M USING IT HAS STRONGENOUGH BUILTIN VIDEO AND STEREO SOUND TO HANDLE MULTIMEDIA SOFTWARE ON CDROM SUCH AS ELECTRONIC ENCYCLOPEDIAS THERE'S ALSO A CABLEREADY TV SET IN THERE THAT YOUR CABLETV SERVICE CAN BE PLUGGED INTO THE SAME WAY AS ON ANY TELEVISION SET JUST CLICK A BUTTON ON THE REMOTE CONTROL OR TAP A COUPLE OF KEYBOARD KEYS AND THE SCREEN SWITCHES FROM COMPUTER TO TV OR TO A VIDEO DISPLAY FOR ANY DEVICE YOU ATTACH SUCH AS A GAME MACHINE OR VCR WHILE IT'S IN COMPUTER MODE YOU CAN LISTEN TO THE TV SOUND OR TO AN AUDIO CD IN THE BACKGROUND THROUGH THE SPEAKERS OR VIA A HEADPHONE JACK WHILE IN TV MODE YOU CAN FREEZE A PICTURE ON SCREEN AND CAPTURE IT AS A COMPUTER GRAPHIC SAVED ON YOUR HARD DISK JUST BY HITTING A FEW KEYS MACINTOSH TV COMES WITH A BUNCH OF PRELOADED SOFTWARE INCLUDING BASIC PRODUCTIVITY APPLICATIONS AND SOFTWARE THAT ENABLES THE MACHINE TO READ IBMCOMPATIBLE DISKS TO CONTROL THE TV PORTION A SPECIAL PROGRAM SCANS FOR AVAILABLE CABLETV CHANNELS AND LETS YOU ENTER NAMES FOR THEM YOU CAN EVEN SET A PASSWORD THAT PREVENTS KIDS FROM USING THE TV AT ALL UNTIL OR UNLESS PARENTS PERMIT IT AN ASSORTMENT OF CDROM DISKS IS BUNDLED WITH THE MACHINE INCLUDING THE GROLIER'S ENCYCLOPEDIA AND AN ELECTRONIC VERSION OF TIME MAGAZINE THIS ISN'T THE FIRST OR ONLY COMPUTER WITH A TV INSIDE FOR YEARS ADDIN CARDS CONTAINING A TV TUNER HAVE BEEN AVAILABLE PACKARD BELL SELLS AN IBMCOMPATIBLE MODEL THAT HAS THE ABILITY TO PLAY TV PROGRAMS IN A WINDOW ON SCREEN WHILE YOU WORK ON THE COMPUTER RATHER HAN FORCING YOU TO SWITCH TO A SEPARATE FULLSCREEN TV PICTURE AS MACINTOSH TV DOES IT'S A BIT MORE POWERFUL BUT COMES IN SEVERAL PIECES AND COSTS 100 MORE THAN THE MAC TV FOR JUST THE BASE UNIT WITHOUT A MONITOR THE APPLE MODEL IS HOWEVER THE FIRST MAJOR BRAND I KNOW OF THAT PUTS A TV SET COMPUTER AND CD PLAYER WITH A FULLSIZE COLOR SCREEN IN ONE UNIT AN ATTRACTIVE DESIGN FOR HOMEOFFICE USERS AND STUDENTS THIS ONEPIECE FULLSCREEN DESIGN IS PROVING POPULAR WITH HOME USERS COMPAQ COMPUTER REPORTS TORRID SALES FOR ITS NEW ONEPIECE IBMCOMPATIBLE PRESARIO 425 A 1400 MACHINE THAT LACKS NOT ONLY THE EXOTIC TV FEATURE BUT EVEN THE MUCH MORE COMMON ATTRIBUTES OF AN INTERNAL CDROM PLAYER AND STEREO SOUND STILL THE MACINTOSH TV HAS A FEW DRAWBACKS AND SO MAY THE WHOLE CONCEPT OF COMBINING A COMPUTER AND TELEVISION SET IT DOESN'T SPORT APPLE'S LATEST FASTEST PROCESSOR CHIP CAN DISPLAY ONLY 256 COLORS AT A TIME IN ITS COMPUTER MODE VS 16000 IN THE PERFORMA 550 NONTV MODEL AND ITS MEMORY CAN ONLY BE EXPANDED TO EIGHT MEGABYTES VS 36 FOR THE NONTV MODEL IT DOESN'T COME WITH A MODEM WHILE THE PERFORMA 550 DOES THE TV PICTURE IS A BIT GRAINY AND OCCASIONALLY JERKY WHEN VIEWED FROM THE SHORT DISTANCES AT WHICH PEOPLE WORK ON COMPUTERS IF YOU DON'T LIKE THE BUILTIN SCREEN YOU'RE STUCK AND THE TV CAN BE A DEFINITE DISTRACTION THIS COLUMN IS TAKING MUCH LONGER THAN IT SHOULD TO WRITE BECAUSE I KEEP SWITCHING TO TV MODE TO VIEW STAR TREK AND OTHER SHOWS IN ADDITION WHILE PARENTS CAN LOCK UP THE WHOLE TV WITH A PASSWORD THEY CAN'T SELECTIVELY LOCK OUT PARTICULAR CHANNELS THOSE ARE SOME OF THE REASONS APPLE IS BEING TIMID ABOUT SELLING THE MACINTOSH TV IT IS TREATING IT AS A SPECIALEDITION PRODUCT AVAILABLE ONLY THROUGH SELECTED CONSUMERELECTRONICS STORES IN CERTAIN PARTS OF THE COUNTRY THROUGH ITS DIRECTMAIL CATALOG AND THROUGH COLLEGECAMPUS DEALERSHIPS THAT SERVE ONLY STUDENTS AND FACULTY BY CONTRAST THE MORE CONVENTIONAL PERFORMA 550 IS SOLD AT NUMEROUS CONSUMERELECTRONICS AND DEPARTMENT STORES SUCH AS SEARS ROEBUCK FOR AROUND 2000 EVEN WITHOUT THE TV I CONSIDER IT AN ATTRACTIVE DESIGN BASED ON THE COMPAQ PRESARIO'S PRICE HOWEVER IT WOULD BE MORE ATTRACTIVE AT 1800 APPLE HAS NO CURRENT PLANS TO OFFER A TV UPGRADE FOR THE PERFORMA 550 WHICH IS A SHAME HOW CAN I WORK WITHOUT BEING ABLE TO BEAM UP TO THE STARSHIP ENTERPRISE 9311040035 931104 WHAT'S NEWS BUSINESS AND FINANCE STOCKS TUMBLED AS SKITTISH INVESTORS BAILED OUT OF UTILITY AND FINANCIAL STOCKS AMID FEARS THAT INTEREST RATES ARE HEADED HIGHER THE DOW JONES INDUSTRIAL AVERAGE SANK 3577 POINTS TO 366187 LONGTERM BOND PRICES SLUMPED FOR THE FOURTH STRAIGHT DAY THE YIELD ON THE TREASURY'S 30YEAR BENCHMARK ROSE TO 610 THE PACE OF ECONOMIC GROWTH SHOWED VIRTUALLY NO ACCELERATION DURING THE SIX WEEKS ENDED OCT 26 A NEW SURVEY BY THE 12 FED BANKS SAID PRUDENTIAL WITHDREW PLANS TO SELL ITS CENTERMARK MALL UNIT TO THE PUBLIC AGREEING INSTEAD TO SELL IT TO A GROUP LED BY ANOTHER MALL CONCERN FOR ABOUT 870 MILLION IN CASH AND DEBT THE CLINTON ADMINISTRATION STRUCK DEALS WITH MEXICO TO HELP PROTECT SIX POLITICALLY SENSITIVE INDUSTRIES WHICH OFFICIALS HOPE MAY PERSUADE UP TO 20 HOUSE MEMBERS TO VOTE FOR NAFTA RESIDENTIAL FIXEDRATE MORTGAGES JUMPED TO 716 THE FIRST TIME SINCE AUGUST THEY HAVE BEEN ABOVE 7 SOME ANALYSTS SAID THAT HOMELOAN RATES MAY FINALLY HAVE BOTTOMED OUT BOEING IS CLOSE TO WINNING A PIVOTAL ORDER FROM SOUTHWEST AIRLINES THAT WILL LAUNCH THE AIRCRAFT MAKER'S NEXTGENERATION 737X AIRLINERS BANC ONE AGREED TO ACQUIRE LIBERTY NATIONAL BANCORP IN A STOCK SWAP NOW VALUED AT ABOUT 842 MILLION MOYNIHAN SOUGHT A TAX INCREASE ON HANDGUN AMMUNITION THAT WOULD RAISE THE LEVY TO 50 FROM 11 AND MAINTAINED THAT IT SHOULD BE INCLUDED IN THE CLINTON HEALTHREFORM BILL JOSEPH PERELLA IS MULLING TAKING A JOB AS A MERGERS AND ACQUISITIONS ADVISER AT MERRILL LYNCH MORGAN STANLEY OR BEAR STEARNS SOME SAID A DECISION COULD COME IN ABOUT A WEEK SALES OF NORTH AMERICANBUILT CARS AND LIGHT TRUCKS REGISTERED SOLID GAINS IN THE FINAL 10 DAYS OF OCTOBER CAPPING A STRONG MONTH AND SUGGESTING THAT THE HEALTHY DEMAND COULD CONTINUE THROUGH THE END OF THE YEAR GLOBEX'S CHAIRMAN WILL UNVEIL A PLAN TO RADICALLY RESTRUCTURE THE COMPUTERIZED GLOBAL TRADING SYSTEM AND TURN OVER ITS MANAGEMENT TO A CONSORTIUM OF FUTURES EXCHANGES THE CHICAGO BOARD OPTIONS EXCHANGE OFFERED TO ACQUIRE THE PHILADELPHIA STOCK EXCHANGE WHICH HAS THE FOURTHLARGEST OPTIONS MARKET CONAGRA IS LOBBYING FOR LEGISLATION THAT WOULD ALLOW IT TO KEEP SPRAYING WATER ON GRAIN STORED IN ITS ELEVATORS BUT SOME FEDERAL OFFICIALS SAY SUCH A LAW WOULD UNDERMINE A CRIMINAL PROBE OF THE COMPANY'S GRAINHANDLING UNIT MARTIN REVSON AGREED TO PAY ALMOST 16 MILLION TO SETTLE ALLEGATIONS BY THE SEC THAT HE PARTICIPATED IN A HIGHSOCIETY INSIDERTRADING RING DAIMLERBENZ PROJECTED THAT ITS NET LOSS FOR THE FIRST NINE MONTHS OF THE YEAR WILL WIDEN TO 117 BILLION THE GERMAN COMPANY SAID THAT LOSSES BALLOONED IN THE THIRD QUARTER BECAUSE OF HEAVY ONETIME CHARGES TO COVER RESTRUCTURING AND LAYOFF COSTS BAXTER INTERNATIONAL AND SOMATIX THERAPY FORMED A JOINT VENTURE TO DEVELOP A GENETHERAPY APPROACH FOR TREATING HEMOPHILIA BONDS LEHMAN BROTHERS TREASURY INDEX 553976 OFF 1499 COMMODITIES OIL 1749 A BARREL UP 37 CENTS DOW JONES FUTURES INDEX 13256 UP 090 SPOT INDEX 11997 UP 011 DOLLAR 10768 YEN OFF 00126925 MARKS OFF 00110 9311040034 931104 BUSINESS BRIEF EQUITABLE COS CONCERN TO PAY 15 MILLION TO SETTLE SECURITIES CHARGES EQUITABLE COS AGREED TO PAY A 15 MILLION FINE TO SETTLE NATIONAL ASSOCIATION OF SECURITIES DEALERS CHARGES THAT IT FAILED TO ADEQUATELY SUPERVISE SOME OF ITS SECURITIES BROKERS THE NASD FOUND THAT THE COMPANY'S FLAGSHIP INSURANCE UNIT EQUITABLE LIFE ASSURANCE SOCIETY OF THE US FAILED TO SET UP PROCEDURES TO GUARD AGAINST MISREPRESENTATIONS AND THE SALE OF SECURITIES TO UNQUALIFIED INVESTORS THE NASD ALSO SAID THE INSURER FAILED TO NOTIFY THE ASSOCIATION OF CUSTOMER COMPLAINTS AGAINST BROKERS AS SOON AS IT SHOULD HAVE THE NASD AGREED TO WAIVE 500000 OF THE FINE BECAUSE OF RESTITUTION EQUITABLE HAS PAID TO CUSTOMERS THE ASSOCIATION SAID THE BROKERS WORKED IN DETROIT AND MILFORD CONN AND INVESTIGATIONS AGAINST SOME OF THE SALESPEOPLE ARE CONTINUING EQUITABLE SAID THE BROKERS HAVE EITHER BEEN FIRED OR DISCIPLINED THE COMPANY HAS COOPERATED FULLY AND ADMITS NO WRONGDOING IN THE VOLUNTARY SETTLEMENT A SPOKESMAN SAID THE ALLEGED VIOLATIONS OCCURRED BETWEEN 1985 AND 1990 9311040033 931104 BUSINESS BRIEF AMERICAN SHIP BUILDING CO NAVY WARNS OF CANCELING FIRM'S SOLE REMAINING JOB AMERICAN SHIP BUILDING CO THE CONCERN RUN BY NEW YORK YANKEES OWNER GEORGE STEINBRENNER MAY BE LOSING ITS LAST SOURCE OF REVENUE NAVY OFFICIALS TOLD THE TAMPA FLA COMPANY IT MUST CLEAR UP PERFORMANCE PROBLEMS ON A 58 MILLION CONSTRUCTION PROJECT WITHIN 10 DAYS OR THE CONTRACT MAY BE CANCELED THE CONTRACT INVOLVING CONSTRUCTION OF A NAVY SURVEILLANCE VESSEL REPRESENTS AMERICAN SHIP'S ONLY REMAINING PIECE OF WORK A SPOKESMAN AT AMERICAN SHIP BUILDING ACKNOWLEDGED THAT THE COMPANY HAD BEEN INFORMED OF THE NAVY'S LATEST ACTION BUT DECLINED FURTHER COMMENT AMERICAN SHIP BUILDING HAS BEEN TRYING TO AVOID BANKRUPTCY FOR MORE THAN A YEAR NOW AS COMMERCIAL CONTRACTS HAVE DRIED UP AND MILITARY JOBS HAVE BECOME INCREASINGLY SCARCE THE COMPANY HAS REPORTED LOSSES IN EACH OF THE PAST FOUR YEARS 9311040032 931104 BUSINESS BRIEF DESIGNATRONICS INC PARTS AND EQUIPMENT MAKER EXPECTS TO POST NET FOR YEAR DESIGNATRONICS INC BENEFITING FROM A GROWING CUSTOMER BASE AND EFFICIENCIES EXPECTS TOMORROW TO REPORT NET INCOME OF 18 MILLION OR 65 CENTS A SHARE FOR THE YEAR ENDED AUG 31 A YEAR EARLIER THE NEW HYDE PARK NY MAKER AND MARKETER OF MECHANICAL AND ELECTROMECHANICAL COMPONENTS AND EQUIPMENT HAD A NET LOSS OF 29 MILLION OR 104 A SHARE THAT INCLUDED A CHARGE OF 24 MILLION FOR DISCONTINUING ITS ELECTRONICS AND ACOUSTICALPRODUCTS OPERATIONS THE COMPANY EXPECTS TO POST SALES OF 237 MILLION UP 3 FROM 229 MILLION PROFIT FROM CONTINUING OPERATIONS IS EXPECTED TO BE AT LEAST 11 MILLION OR 40 CENTS A SHARE COMPARED WITH SIX CENTS A SHARE A YEAR EARLIER EXCEEDING PROJECTIONS MARTIN HOFFMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER ATTRIBUTED THE IMPROVEMENT LARGELY TO A NEW SERIES OF PRODUCT CATALOGS THAT HE SAID BOOSTED THE COMPANY'S CUSTOMER BASE 9311040031 931104 BUSINESS BRIEF CAE INC US AIR FORCE AWARDS UNIT A 106 MILLION CONTRACT CAE INC TORONTO SAID ITS US SUBSIDIARY CAELINK CORP WAS AWARDED A 106 MILLION CONTRACT FROM THE US AIR FORCE FOR UPGRADES TO CAE'S B2 FLIGHT SIMULATOR THE UPGRADES COMPLEMENT NEW FEATURES OF THE B2 AND WILL ENHANCE RADAR FLIGHTCONTROL AND GLOBALPOSITIONING SYSTEMS AMONG OTHER IMPROVEMENTS TO THE FLIGHT SIMULATORS CAE ALSO SAID IT WILL SHARE A CONTRACT WITH A VALUE OF ABOUT 115 MILLION WITH A EUROPEAN CONSORTIUM TO RESEARCH TECHNOLOGY REQUIRED FOR THE NETWORKING OF TACTICAL SIMULATORS THE CONTRACT WAS AWARDED BY A GROUP OF EUROPEAN COUNTRIES CAE WHICH MAKES COMMERCIAL AND MILITARY TRAINING DEVICES AND OTHER ELECTRONIC EQUIPMENT ALSO SAID IT RECEIVED A CONTRACT FROM THE PAN AM INTERNATIONAL FLIGHT ACADEMY IN MIAMI TO PROVIDE AIRTRAFFIC CONTROL SIMULATORS TERMS OF THE PACT WEREN'T DISCLOSED 9311040030 931104 REFLECTONE UNIT GETS OPTIONS TAMPA FLA REFLECTONE TRAINING SYSTEMS A UNIT OF REFLECTONE INC SAID IT HAS RECEIVED NINE CONTRACT OPTIONS WITH A COMBINED VALUE OF 16 MILLION TO CONTINUE SEVERAL MILITARY TRAINING PROGRAMS FOR ANOTHER YEAR IN A NEWS RELEASE REFLECTONE SAID THE MILITARY'S TRAINING SYSTEMS DIVISION NAVAL AIR WARFARE CENTER IN ORLANDO FLA RENEWED FIVE CONTRACT OPTIONS TO PROVIDE SIMULATOR MAINTENANCE AND INSTRUCTIONAL SERVICES FOR FISCAL 1994 ON 13 NAVY AND MARINE CORPS BASES IN FOUR SEPARATE AWARDS AIR FORCE MAJOR COMMANDS CONTRACTED FOR TRAINING SERVICES AT 10 AIR FORCE BASES FOR 1994 THE COMPANY SAID 9311040029 931104 OLD AMERICA OCTOBER SALES ROSE HOWE TEXAS OLD AMERICA STORES INC AN ARTS CRAFTS AND DECORATING RETAILER SAID OCTOBER SALES ROSE 158 TO 88 MILLION FROM A YEAREARLIER 76 MILLION SAMESTORE SALES DIPPED 08 FOR THE YEAR TO DATE SALES ROSE 167 TO 634 MILLION FROM A YEAREARLIER 543 MILLION AND SAMESTORE SALES ROSE 14 9311040028 931104 BUSINESS BRIEF LIUSKI INTERNATIONAL INC COMPANY TO POST SHARP RISE IN THIRDQUARTER EARNINGS LIUSKI INTERNATIONAL INC MELVILLE NY EXPECTS TO REPORT THIRDQUARTER NET INCOME AT LEAST DOUBLED DRIVEN BY STEADY GROWTH IN BOTH ITS DISTRIBUTION AND BRANDNAME COMPUTER BUSINESSES FOR THE QUARTER LIUSKI EXPECTS TO POST EARNINGS BETWEEN 23 CENTS A SHARE AND 25 CENTS A SHARE OR 1 MILLION TO 11 MILLION THAT COMPARES WITH 504351 OR 16 CENTS A SHARE A YEAR EARLIER LIUSKI HAD A PUBLIC OFFERING IN MAY THAT INCREASED SHARES OUTSTANDING BY ABOUT 11 MILLION TO 44 MILLION IF THE YEAREARLIER RESULTS WERE ADJUSTED TO REFLECT THE OFFERING PERSHARE EARNINGS WOULD HAVE BEEN ABOUT 11 CENTS THE COMPANY EXPECTS TO RECORD SALES BETWEEN 77 MILLION AND 79 MILLION THOSE FIGURES WOULD BE A 56 TO 60 JUMP FROM 495 MILLION A YEAR EARLIER IT EXPECTS TO REPORT RESULTS NEXT WEEK 9311040027 931104 MARKETING BRIEF NOTED WHO'S NEWS GORDON COOKE 48 YEARS OLD CHIEF EXECUTIVE OF BLOOMINGDALE'S BY MAIL A DIVISION OF FEDERATED DEPARTMENT STORES INC WAS NAMED PRESIDENT OF TIME WARNER INTERACTIVE MERCHANDISING A NEW DIVISION OF TIME WARNER INC'S TIME WARNER ENTERTAINMENT CO UNIT THE DIVISION WILL DEVELOP PROGRAMMING FOR MARKETERS IN BOTH THE EXISTING TIME WARNER CABLE SYSTEMS AS WELL AS THE PLANNED INTERACTIVE NETWORK WHICH WILL BEGIN OPERATIONS IN ORLANDO FLA IN APRIL 1994 THE CNBC CABLE NETWORK DIVISION OF GENERAL ELECTRIC CO'S NATIONAL BROADCASTING CO UNIT SAID GENERAL COUNSEL DAVID ZASLAV 34 WAS NAMED TO THE ADDITIONAL POST OF SENIOR VICE PRESIDENT AFFILIATE MARKETING AND SALES 9311040026 931104 BUSINESS BRIEF LIBERTE INVESTORS REORGANIZATION PLAN IS FILED BASED ON HOLDERS' PROPOSAL LIBERTE INVESTORS SBI SAID IT FILED A PLAN OF REORGANIZATION WITH THE US BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK THE PLAN IS BASED ON A PROPOSAL FROM HOLDERS OF ITS SUBORDINATED NOTES AND BENEFICIAL SHARES THE COMPANY SAID LIBERTE IN DALLAS FILED FOR PROTECTION FROM ITS DEBTORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE OCT 25 THE PLAN HASN'T BEEN APPROVED BY LIBERTE'S SENIOR SECURED INVESTORS THE COMPANY SAID IT WOULD TRANSFER MOST OF LIBERTE'S ASSETS TO A NEWLY FORMED UNIT AND DISTRIBUTE THE STOCK OF THAT UNIT TO HOLDERS OF THE COMPANY'S SUBORDINATED NOTES THE NEW UNIT WOULD ASSUME LIBERTE'S SENIORSECURED DEBT ON RESTRUCTURED TERMS HEARINGS ON THE PLAN HAVE BEEN SET FOR DEC 2 AND JAN 19 LIBERTE IS A REAL ESTATE INVESTMENT TRUST THAT HOLDS MORTGAGE LOANS AND REAL ESTATE INVESTMENTS 9311040025 931104 POLITICS & POLICY GOP'S NEW YORK WIN ECHOING LOS ANGELES VOTE GIVES PARTY CHANCE TO PROVIDE CURES FOR URBAN ILLS BY HEIDI EVANS AND FREDERICK ROSE STAFF REPORTERS OF THE WALL STREET JOURNAL IT HAS BEEN THREEQUARTERS OF A CENTURY SINCE THE NATION'S TWO BIGGEST CITIES BOTH HAD REPUBLICAN MAYORS BUT NOW RUDOLPH GIULIANI IS MAYORELECT OF NEW YORK JOINING LOS ANGELES MAYOR RICHARD RIORDAN JUST WHAT IS GOING ON HERE WHITE MIDDLECLASS ANGER AND A SENSE THAT THE SITUATIONS IN BOTH CITIES WERE SPINNING OUT OF CONTROL UNDER OSSIFIED DEMOCRATIC POLITICAL ESTABLISHMENTS EXPERTS SAY IN BOTH CASES A LOT OF VOTERS WERE UPSET ABOUT EXPERIMENTS IN ETHNIC DIVERSITY IN LIGHT OF CITY SITUATIONS THAT HAVE ARISEN OVER THE COURSE OF THE LAST FOUR YEARS SAYS THOMAS KESSNER A CITY UNIVERSITY OF NEW YORK PROFESSOR AND THE BIOGRAPHER OF A PREVIOUS NEW YORK GOP MAYOR FIORELLO H LAGUARDIA CANDIDATES IN BOTH CITIES HE SAYS ARGUED NOT SO MUCH ABOUT THE FUNDAMENTAL NATURE OF CITY GOVERNMENT BUT ABOUT WHO WAS BETTER EQUIPPED TO MANAGE IT EVEN MR GIULIANI ARGUES THAT NEITHER HIS NOR MR RIORDAN'S VICTORIES CAN BE INTERPRETED AS A VICTORY FOR NATIONAL REPUBLICANISM AS A POLITICAL PHILOSOPHY I THINK THE ELECTION HERE WAS BASED ON LOCAL ISSUES THE PUBLIC'S DISENCHANTMENT WITH CRIME SCHOOLS THE MAYORELECT SAYS THE LA ELECTION WAS ALSO DRIVEN BY LOCAL ISSUES YOU CAN MAKE TOO MUCH OF THIS NATIONAL TREND BUSINESS I THINK AT THE SAME TIME THOUGH THE TWIN VICTORIES PROVIDE A HUGE OPPORTUNITY FOR REPUBLICANS TO SHOW THAT THEY CAN CREDIBLY GOVERN BIG CITIES IN THE 1990S AND GIVE THEM AN OPENING ON THE NATIONAL LEVEL TO SHOW THAT THEY HAVE WORKABLE SOLUTIONS TO THE NATION'S URBAN ILLS SOMETHING THAT MANY VOTERS HAVE DOUBTED OVER THE YEARS THE PROBLEM FOR BOTH MEN IS THAT THEY HAVE INHERITED ENORMOUS MESSES AND UNLESS THEY CAN MAKE HEADWAY IN CLEANING THEM UP DAUNTING TASKS IN BOTH CITIES THEY RUN THE RISK OF REINFORCING RATHER THAN REFUTING THE STEREOTYPES ABOUT REPUBLICANS AND THE INNER CITIES IN DEFEATING MAYOR DAVID DINKINS WHO IS BLACK MR GIULIANI WON THE VAST MAJORITY OF WHITE VOTES ABOUT 40 OF THE HISPANICS AND ALMOST NO BLACKS NOW SAYS JIM SLEEPER A POLITICAL COLUMNIST AND AUTHOR OF A BOOK ABOUT LIBERALISM AND THE POLITICS OF RACE IN NEW YORK GIULIANI HAS A RIORDAN PROBLEM WHEN RIORDAN WON EARLIER THIS YEAR HE CARRIED ONLY 15 OF THE BLACK VOTE AND LESS THAN HALF OF HISPANIC VOTE 72 OF ALL THE PEOPLE WHO VOTED WERE WHITE HE DIDN'T HAVE A RACIALLY DIVERSE MANDATE TO GOVERN BOY IS THAT EVER TRUE HERE IN NEW YORK FOR MR GIULIANI THE PRINCIPAL CHALLENGE MAY BE TO RECONCILE THE NEED TO BE CONCILIATORY IN HIS FACTIONALIZED CITY WITH THE NEED TO ADOPT TOUGH SOLUTIONS TO THE CITY'S MASSIVE ECONOMIC CRIME AND FISCAL PROBLEMS RUDY HAS TO REACH OUT AT THE VERY TIME HE HAS TO PRACTICE DRACONIAN FISCAL CONSERVATISM SAYS MR SLEEPER NOTING THE BUDGET DEFICIT THE CITY FACES 5 BILLION OVER THE NEXT THREE YEARS HE OBSERVES THAT THE NEW MAYOR CAN'T BUY RACIAL PEACE THROUGH EXPENDITURES ADDING TO THE NEW MAYOR'S DIFFICULTIES IS THAT HIS VICTORY WAS A PERSONAL ONE GIULIANIENDORSED CANDIDATES LOST RACES FOR OTHER TOP CITY JOBS CERTAINLY MR GIULIANI'S VICTORY IS AN OPPORTUNITY FOR REPUBLICANS SAYS STANLEY HILL EXECUTIVE DIRECTOR OF DISTRICT COUNCIL 37 WHICH REPRESENTS 130000 MUNICIPALEMPLOYEE MEMBERS 65 OF THEM BLACK OR HISPANIC BUT HE ADDS POINTEDLY IN NEW YORK CITY WE STILL HAVE A DEMOCRATIC COMPTROLLER PUBLIC ADVOCATE AND CITY COUNCIL AND A DEMOCRATIC GOVERNOR A KEY TEST FOR MR GIULIANI WILL BE HIS ABILITY TO TAME MR HILL'S CITY EMPLOYEES AND OTHER MUNICIPAL UNIONS DURING THE CAMPAIGN MR GIULIANI SPOKE OF TRIMMING THE CITY'S WORK FORCE OF 211000 BY 35000 JOBS OVER FOUR YEARS AND OF PRIVATIZING THE AIRPORTS AND SOME MUNICIPAL HOSPITALS BUT THAT WON'T BE AN EASY TASK AND COULD WORK AGAINST OTHER GOALS OF THE MAYOR SUCH AS CRACKING DOWN ON CRIME FOR WHICH HE'LL NEED THE COOPERATION OF THE POLICE OFFICERS' UNION IT IS A CONUNDRUM SAYS FELIX ROHATYN A PARTNER IN LAZARD FRERES AND FORMER CHAIRMAN OF THE CITY'S MUNICIPAL ASSISTANCE CORP CAN YOU GET TOUGH WITH DC 37 WHICH REPRESENTS THE LARGEST NUMBER OF NONUNIFORMED PUBLIC EMPLOYEES IN THE CITY WITHOUT GETTING TOUGH WITH THE COPS AND CAN HE GIULIANI GET TOUGH WITH THE COPS HOW DO YOU KEEP THE BUSINESS COMMUNITY HERE AND NOT RAISE TAXES THE ANSWER HE SAYS IS BY BRINGING THE BUDGET UNDER CONTROL AND PROTECTING SERVICES WITHOUT INCREASING TAXES IF THAT IS POSSIBLE BUT THAT NEEDS TO BE DONE WITH THE COOPERATION OF THE LABOR UNIONS AND THE BLACK AND HISPANIC COMMUNITIES WHO SHOULDN'T FEEL LEFT OUT OF THE PROCESS THE PAIN MAY BE ESPECIALLY ACUTE FOR BLACK NEW YORKERS WHO HELPED MAKE MR DINKINS THE CITY'S FIRST BLACK MAYOR FOUR YEARS AGO AND NOW MUST WATCH HIM LEAVE IN DEFEAT NEW YORKERS WERE JUST DISAPPOINTED WITH DAVID DINKINS AND WANTED HIM OUT FOR MANY REASONS RACE THE PERCEPTION OF CRIME THE ISSUE OF BEING TOUGH ENOUGH TO DEAL WITH A TOUGH CITY SAYS CALVIN BUTTS PASTOR OF THE ABYSSINIAN BAPTIST CHURCH IN HARLEM BUT HE STRIKES A CONCILIATORY NOTE ABOUT THE NEW MAYOR I THINK NEW YORK WILL BE OK HE SAYS I DON'T SEE HIM AS THE BEAST MANY MADE HIM OUT TO BE WE ARE IN MUCH BETTER SHAPE THAN IN LA WE ARE A MORE VIBRANT AND PROGRESSIVE CITY THAT ISN'T A CHARACTERIZATION OF THEIR CITY OR THEIR MAYOR THAT MOST ANGELENOS WOULD AGREE WITH INDEED IN THE FOUR MONTHS SINCE TAKING OFFICE MR RIORDAN HAS BOTH SURPRISED AND AMUSED RESIDENTS WITH AN AGENDA FAR LESS CONSERVATIVE THAN EITHER HIS PARTY OR HIS PEDIGREE INITIALLY SUGGESTED LOCALLY LOS ANGELES' NEW MAYOR HAS TAKEN TIME TO CURRY FAVOR WITH LARGELY LIBERAL CITY COUNCIL MEMBERS HE'S BEEN A BREATH OF FRESH AIR IN CITY HALL WITH A NEW IDEA A MINUTE SAYS POWERFUL LIBERAL CITY COUNCILMAN ZEV YAROSLAVSKY HOWEVER HE CAUTIONS MR RIORDAN'S CHALLENGE IS TO BRIDGE THE IDEAS WITH IMPLEMENTATION AND IT'S TOO EARLY TO TELL WHETHER HE WILL DO THAT HIS FIRST 100 DAYS IN OFFICE HAVE BEEN NO HARM NO FOUL SAYS SHERRY BEBITCH JEFFE SENIOR ASSOCIATE AT THE CENTER FOR POLITICS AND ECONOMICS AT CLAREMONT GRADUATE SCHOOL IN CLAREMONT CALIF UNLIKE MR GIULIANI AN EXPERIENCED PUBLIC OFFICIAL WHO HAD BEEN A FEDERAL PROSECUTOR IN NEW YORK MR RIORDAN ENTERED OFFICE A POLITICAL NOVICE HE HAD BEEN A BUSINESSMAN WHO AMONG OTHER THINGS MADE MILLIONS FROM INVESTMENTS CAPITALIZED IN PART BY JUNK BONDS SOLD THROUGH DREXEL BURNHAM LAMBERT INC WHOSE MICHAEL MILKEN MR GIULIANI PROSECUTED BUT BOTH MEN PLAYED THE ROLE OF POLITICAL OUTSIDER A ROLE THAT MR RIORDAN HAS ALREADY DISCOVERED IS HARD TO PLAY ONCE IN OFFICE MR RIORDAN IN HIS BRIEF TENURE HAS SO FAR TRIPPED OVER EVERYTHING FROM BICYCLESAFETY INTERESTS HE HAS BEEN KNOWN TO RIDE WITHOUT A HELMET TO THE CITY ETHICS COMMISSION WHICH HAD TO CAUTION THE MAYOR THAT WELLMEANT REQUESTS FOR CORPORATE CHARITY HAD BROUGHT THE CITY A BARRAGE OF GIFTS THAT POSED LEGAL PROBLEMS MR RIORDAN REALLY DIDN'T UNDERSTAND THAT YOU CAN'T RUN A CITY AS YOU CAN A BUSINESS YOU HAVE TO COMPROMISE AND THERE ARE RULES TO FOLLOW SAYS MS BEBITCH JEFFE BUT FOR ALL HIS STUMBLES SHE NOTES HE HAS LEFT A FAVORABLE IMPRESSION WITH MANY RESIDENTS FOR HIS RESPONSE TO THE FIRES CURRENTLY RAVAGING HIS CITY HE'S GROWING SHE SAYS AT HIS NEWS CONFERENCE YESTERDAY HE LOOKED VERY MUCH IN CHARGE AND KNEW WHAT HE WAS TALKING ABOUT POLITICALLY THE MAYOR'S MOST SERIOUS CHALLENGE CONCERNS HIS PROMISE TO LEASE LOS ANGELES' VAST CITY AIRPORT TO PRIVATE OPERATORS AND USE THE CASH FLOW TO FINANCE THE HIRING OF UP TO 3000 ADDITIONAL POLICE OFFICERS A 40 BOOST TO THE FORCE OVER THE NEXT FIVE YEARS THAT'S A HOT ITEM IN A CITY THAT LAST YEAR HAD THE NATION'S DEADLIEST URBAN RIOTS IN A CENTURY BUT CRITICS DERIDE THE PLAN AS UNWORKABLE AND OPPOSITION RANGING FROM THE CITY COUNCIL TO THE US SENATE MAKE IT UNLIKELY THAT THE PROPOSAL EVER WILL BE ENACTED LIKE MR GIULIANI MR RIORDAN PLAYS DOWN THE IMPORTANCE OF HIS PARTISAN POLITICAL IDENTIFICATION IF ANYTHING HE SAYS THE TWO GOP CANDIDATES' VICTORIES SHOW THAT CITY GOVERNMENT IS BECOMING INCREASINGLY NONPARTISAN AND I THINK THAT'S A VERY HEALTHY SIGN 9311040024 931104 BUSINESS BRIEF CAMPBELL SOUP CO JOINT VENTURE IS PLANNED TO UPGRADE SALES IN JAPAN CAMPBELL SOUP CO SAID IT WILL FORM A JOINT VENTURE WITH JAPANESE GROCERYITEM PRODUCER NAKANO VINEGAR CO TO UPGRADE MARKETING OF CAMPBELL SOUPS IN JAPAN THE NEW COMPANY CAMPBELL NAKANO INC WILL BE 51OWNED BY CAMPBELL IN CAMDEN NJ AND 49 OWNED BY NAKANO CAMPBELL'S SAID BASED IN TOKYO IT WILL IMPORT CAMPBELL'S SOUPS FROM THE US AND SELL THEM THROUGHOUT JAPAN VIA NAKANO'S EXISTING DISTRIBUTION SYSTEM CAMPBELL CURRENTLY MARKETS ITS SOUPS ONLY IN THE TOKYO AND OSAKA METROPOLITAN REGIONS THROUGH ITS WHOLLY OWNED CAMPBELL JAPAN INC SUBSIDIARY FOLLOWING THE VENTURE CAMPBELL JAPAN WILL CONTINUE TO MARKET CAMPBELL'S NONSOUP PRODUCTS SUCH AS V8 VEGETABLE JUICE AND GODIVA PREMIUM CHOCOLATES CAMPBELL SAID HEADQUARTERED IN HANDA CITY JAPAN NAKANO REPORTED 15 BILLION IN SALES IN FISCAL 1992 CAMPBELL HAD SALES OF 66 BILLION FOR ITS FISCAL 1993 ENDED JULY 31 9311040023 931104 CAPITOL AMERICAN BUYBACK PLAN CLEVELAND CAPITOL AMERICAN FINANCIAL CORP SAID IT WOULD BUY BACK AS MANY AS 500000 SHARES OF ITS COMMON STOCK AS OF SEPT 30 THE SUPPLEMENTALINSURANCE COMPANY HAD ABOUT 185 MILLION SHARES OUTSTANDING CAPITOL'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER DAVID H GUNNING SAID THE COMPANY'S SHARES WERE UNDERVALUED AND THAT THE PURCHASE OF THE SHARES AT RECENTLY PREVAILING PRICE LEVELS WOULD BENEFIT SHAREHOLDERS AND LEAVE THE COMPANY WITH A COMFORTABLE LEVEL OF CAPITAL THE COMPANY ANNOUNCED THE BUYBACK PLAN AFTER THE CLOSE OF TRADING IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE COMPANY'S SHARES CLOSED AT 18 DOWN 375 CENTS 9311040022 931104 HARDEES' OPERATING PROFIT ROSE ROCKY MOUNT NC HARDEE'S FOOD SYSTEMS INC A UNIT OF MONTREALBASED IMASCO LTD SAID THIRDQUARTER OPERATING PROFIT ROSE 17 TO 322 MILLION FROM 276 MILLION DESPITE WHAT IT CALLED FIERCE COMPETITION SYSTEMWIDE SALES WHICH INCLUDE THOSE AT COMPANYOPERATED AND FRANCHISEE RESTAURANTS TOTALED 13 BILLION A 3 INCREASE WHILE COMPANY REVENUE GREW 2 TO 5442 MILLION FROM 5321 MILLION PREVIOUSLY 9311040021 931104 INTERNATIONAL BRIEF BAT INDUSTRIES PLC RECORD EARNINGS ARE POSTED DESPITE SETBACK IN TOBACCO BA T INDUSTRIES PLC REPORTED RECORD PROFIT FOR THE FIRST NINE MONTHS BUT THE TOBACCO AND FINANCIAL SERVICES CONGLOMERATE WARNED THAT THE CIGARETTE PRICE WAR IN THE US WOULD BE MORE DEBILITATING IN THE FINAL THREE MONTHS OF THE YEAR PRETAX PROFIT FOR THE FIRST NINE MONTHS ROSE 24 TO 136 BILLION 2 BILLION BOOSTED BY A STRONG PERFORMANCE AT THE FINANCIAL SERVICES BUSINESSES AND FAVORABLE FOREIGNEXCHANGE TRANSLATION TRADING PROFIT FROM CONTINUING OPERATIONS IN FINANCIAL SERVICES LEAPED 95 AT CONSTANT EXCHANGE RATES WHILE THE LIFE INSURANCE BUSINESS SAW ITS TRADING PROFIT GROW 13 THE NEWS ON THE TOBACCO SIDE WAS BAD WITH PROFIT FOR THE FIRST NINE MONTHS DOWN 14 FROM 1992 FIGURES ON A QUARTERLY BASIS THE THIRD QUARTER SAW TOBACCO PROFIT TUMBLE 26 FROM 1992'S THIRD QUARTER 9311040020 931104 BUSINESS BRIEF BANK OF BOSTON CORP DEBT ISSUE PLANNED TO FUEL A GROWING LOAN BUSINESS BANK OF BOSTON CORP SAID IT INTENDS TO RAISE 350 MILLION THROUGH A SUBORDINATEDDEBT OFFERING IN THE NEXT WEEK TO SUPPORT ITS RAPIDLY GROWING LOAN BUSINESS AS OF SEPT 30 BANK OF BOSTON BOOSTED ITS PORTFOLIO 87 TO 279 BILLION FROM 25 BILLION A YEAR EARLIER BY CONTRAST A RECENT INDUSTRY STUDY SAID BANKS REPORTED A MEDIAN GAIN OF 1 IN THEIR LOAN PORTFOLIOS DURING THE SAME PERIOD COMPANY OFFICIALS SAID THE OFFERING IS NEEDED TO KEEP ITS CAPITAL RATIOS IN LINE WITH FEDERAL REGULATIONS AS IT CONTINUES TO BUILD ITS PORTFOLIO BRAD WARNER AN EXECUTIVE IN THE BANK'S TREASURY DEPARTMENT SAID DEMAND FOR LOANS HAS BEEN STRONG THROUGHOUT ITS MARKETS INCLUDING SMALL AND MIDSIZE BUSINESSES AND MARKETS OVERSEAS THE ISSUE IS LIKELY TO HAVE A 10YEAR TO 15YEAR MATURITY WITH AN INTEREST RATE DETERMINED BY MARKET CONDITIONS MERRILL LYNCH & CO IS EXPECTED TO BE LEAD UNDERWRITER 9311040019 931104 TECHNOLOGY BRIEF NATIONAL SEMICONDUCTOR CORP COMPANY WILL HELP NEC WITH PC NETWORKS IN JAPAN NATIONAL SEMICONDUCTOR CORP AND JAPANESE COMPUTER COMPANY NEC CORP ARE TEAMING UP TO HELP EXPAND THE MARKET IN JAPAN FOR NETWORKING OF COMPUTER SYSTEMS THE PARTNERSHIP AGREEMENT TO BE ANNOUNCED TODAY IN TOKYO REPRESENTS A FURTHER OPENING OF THE BIG JAPANESE MARKET TO AMERICAN TECHNOLOGY AS PCS BEGIN TO PROLIFERATE IN THE COUNTRY NEC HAS SUPPLIED THE MAJORITY OF ALL PCS SOLD IN THE COUNTRY AT PRICES TWO TO THREE TIMES HIGHER THAN THOSE IN THE US BUT WITH AMERICAN PC MAKERS LIKE APPLE COMPUTER INC MAKING JAPANESE INROADS RECENTLY ON LOWER PRICES SALES HAVE INCREASED MOST OF JAPAN'S PCS STILL OPERATE WITHOUT THE VAST COMPUTER NETWORKS THAT ENABLE MANY US PCS TO COMMUNICATE WITH ONE ANOTHER WITH THIS AGREEMENT NATIONAL SEMICONDUCTOR A SANTA CLARA CALIF MAKER OF THE ETHERNETBASED CHIPS THAT LINK COMPUTERS WITH ONE ANOTHER WILL SUPPLY NEC WITH THE CHIPS NEEDED TO EXPAND JAPANESE NETWORKING 9311040018 931104 INTERNATIONAL BRIEF SIEBE PLC COMPANY SETS RIGHTS OFFER TO FINANCE AN ACQUISITION BRITISH ENGINEERING COMPANY SIEBE PLC ANNOUNCED A 1843 MILLION 2715 MILLION RIGHTS ISSUE TO FINANCE THE ACQUISITION OF GERMANY'S ECKARDT AG THE RIGHTS ISSUE WILL BE ON THE BASIS OF ONE NEW ORDINARY SHARE FOR EVERY 10 ALREADY HELD SIEBE IS OFFERING THE NEW SHARES AT 485 PENCE 714 APIECE WHICH REPRESENTS AN 80 PENCE DISCOUNT ON THE STOCK'S CLOSING PRICE ON THE LONDON STOCK EXCHANGE TUESDAY IN ADDITION TO FINANCING THE ACQUISITION OF ECKARDT A MANUFACTURER OF AUTOMATION AND CONTROL SYSTEMS SIEBE SAID THE PROCEEDS FROM THE RIGHTS ISSUE WILL BE USED TO REFINANCE EBERLE GMBH AND SCHMIDT ARMATUREN GESMBH TWO OTHER GERMAN CONTROLS BUSINESSES ACQUIRED THIS YEAR 9311040016 931104 LEGAL BEAT BUSINESSES MUST WEAN WORKERS FROM THEIR CARS BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL MANY EMPLOYERS WILL SOON FACE LEGAL RESPONSIBILITY FOR A DAUNTING TASK WEANING WORKERS FROM THEIR AUTOMOBILES IN REGIONS OF 11 STATES LAWYERS ARE ADVISING BIG EMPLOYERS TO BRACE THEMSELVES FOR A LITTLENOTICED PROVISION OF THE MASSIVE 1990 CLEAN AIR ACT STARTING IN NOVEMBER 1994 MANY EMPLOYERS IN AREAS WITH SEVERE AIR POLLUTION MUST BEGIN REDUCING THE NUMBER OF PEOPLE WHO DRIVE TO WORK OR FACE FINES AND POSSIBLE CRIMINAL PENALTIES THE LAW WILL AFFECT COMPANIES EMPLOYING MORE THAN 100 WORKERS IN CITIES INCLUDING PHILADELPHIA HOUSTON CHICAGO AND BALTIMORE AND BY SOME ESTIMATES COMPANIES WILL END UP PAYING BETWEEN 200 AND 900 FOR EACH EMPLOYEE ANNUALLY TO COMPLY WITH THE PLAN THE SOCALLED EMPLOYER TRIPREDUCTION PROGRAMS PUT THE ONUS ON COMPANIES TO ENCOURAGE THE USE OF CARPOOLING MASS TRANSIT AND COMPANYARRANGED TRANSPORTATION WHILE PENALIZING PEOPLE WHO DRIVE TO WORK ALONE BUT BY REQUIRING CHANGES IN WORKERS' TRAVEL HABITS THE PROGRAMS ALSO RAISE NEW LIABILITY CONCERNS FOR EMPLOYERS LAWYERS SAY BECAUSE COMPANYMANDATED TRAVEL ARRANGEMENTS COULD BE SEEN AS AN EXTENSION OF THE WORKPLACE COMPANIES COULD FACE LAWSUITS OVER TRAFFIC ACCIDENTS OR EVEN SEXUAL HARASSMENT IN A CAR POOL BUT THEIR PRIMARY WORRY LAWYERS SAY IS THAT THE RULE PITS EMPLOYERS AGAINST WORKERS OVER WHAT MANY AMERICANS SEE AS A SACRED RIGHT THEY ARE CHANGING WHAT EVERYONE HAS COME TO SEE AS A SIGN OF FREEDOM AND INDIVIDUAL LIBERTY THE RIGHT TO DRIVE SAYS ENVIRONMENTAL LAWYER JOSEPH J MCGOVERN OF PHILADELPHIA LAW FIRM BLANK ROME COMISKY & MCCAULEY THE LAW AFFECTS REGIONS THAT THE ENVIRONMENTAL PROTECTION AGENCY HAS FOUND TO HAVE SEVERE OZONE AND CARBONMONOXIDE POLLUTION OF WHICH AUTOMOBILES ARE A BIG CAUSE THE TARGETED AREAS ARE IN CALIFORNIA CONNECTICUT DELAWARE ILLINOIS INDIANA MARYLAND NEW JERSEY NEW YORK PENNSYLVANIA TEXAS AND WISCONSIN THE PROGRAMS DIFFER BECAUSE THEY ARE BEING SET UP BY AGENCIES IN EACH OF THE STATES SOME PROGRAMS WILL BE GRADUALLY PHASED IN OTHERS ALLOW COMPANIES TO TRADE CARPOOLING CREDITS FOR MOST COMPANIES THOUGH MEETING THE TRAVEL REQUIREMENTS WILL REQUIRE MAJOR CHANGES BY EMPLOYEES IN EACH AFFECTED REGION STATE AGENCIES ARE DETERMINING THE AVERAGE NUMBER OF PEOPLE PER CAR TRAVELING TO WORK DURING THE PEAK HOURS OF 6 AM TO 10 AM BOOST THAT NUMBER BY 25 AND YOU GET THE TARGET THAT EMPLOYERS IN THE REGION MUST MEET FOR SOME DOWNTOWN AREAS IMPLEMENTATION WILL BE EASY BECAUSE PUBLIC TRANSPORTATION IS READILY AVAILABLE BUT IN SUBURBAN AND RURAL AREAS GETTING TO WORK MAY BECOME VERY TRICKY WE ARE OUT IN THE STICKS SAYS MILT ANCEVIC HUMANRESOURCES DIRECTOR FOR GANDER MOUNTAIN INC A HUNTINGSUPPLIES COMPANY IN WILMOT WIS WE FEEL WE HAVE PRETTY CLEAN AIR INITIALLY GANDER MOUNTAIN EXPECTED THAT IT WOULD BE EXEMPT FROM THE LAW THE COMPANY'S ROUGHLY 1200 WORKERS DRIVE TO WORK FROM TINY NEARBY COMMUNITIES AND RURAL AREAS WE CAN'T ENCOURAGE BICYCLE RIDING BECAUSE WE'RE SO FAR OUT IN THE COUNTRY SAYS MR ANCEVIC HE SAID THE COMPANY IS CONSIDERING CHANGES IN WORK SCHEDULES AS WELL AS TRADING FOR EXCESS CARPOOLING CREDITS WITH OTHER COMPANIES AMONG OTHER THINGS THE GOVERNMENT HAS RECOMMENDED THAT COMPANIES INSTALL BICYCLE RACKS AND PROVIDE MINIBUS SERVICE BUT COMPANIES ALSO FACE THE EXPENSE OF DOCUMENTING AND MONITORING WORKERS' TRAVEL HABITS NOT COMPLYING WILL BE COSTLY THE POTENTIAL FINES REACH 25000 A DAY UNDER SOME STATE PROGRAMS AND THE CLEAN AIR ACT PROVIDES FOR ADDITIONAL PENALTIES REPEATED REFUSALS TO COMPLY COULD RESULT IN CRIMINAL FINES AND PRISON SENTENCES REACTION IN THE BUSINESS COMMUNITY HAS BEEN MIXED WHILE COMPANIES HAVE BEGUN DRAFTING THEIR PLANS MANY ARE QUESTIONING WHETHER THE MEASURES WILL AMOUNT TO A SIGNIFICANT CHANGE IN AIR POLLUTION EVEN IF THE PROGRAM IS FULLY SUCCESSFUL THE ACTUAL DECREASE IN EMISSIONS IS FAIRLY SMALL SAYS GEORGE J MAREK AN ENVIRONMENTAL LAWYER AT MILWAUKEE LAW FIRM QUARLES & BRADY SOME COMMUNITY OFFICIALS FEAR THE PROGRAMS WILL DISCOURAGE NEW COMMERCIAL DEVELOPMENT WHEN BUSINESSES GET TO THE POINT OF MAKING DECISIONS ON EXPANSION THEY MAY DECIDE TO LOOK ELSEWHERE RATHER THAN PUT UP WITH THE ENVIRONMENTAL RED TAPE THAT WE FACE SAYS JOHN BECHLER DIRECTOR OF THE KENOSHA AREA DEVELOPMENT CORP IN WISCONSIN MR MAREK SAYS COMPANIES ARE WORRIED ABOUT HOW WORKERS WILL RESPOND YOU'RE ASKING AN EMPLOYER TO POLICE HIS OR HER EMPLOYEES AND THAT ISN'T A ROLE THAT ANYBODY IS HAPPY WITH HE SAYS SOME COMPANIES ARE ALREADY PREPARING WORKERS FOR THE COMING CHANGES AT HOECHST CELANESE CORP IN SOMERVILLE NJ A UNIT OF HOECHST AG THE GERMAN CHEMICAL CONCERN MANAGEMENT HAS BEEN MEETING INFORMALLY WITH WORKERS TO DISCUSS WAYS TO IMPLEMENT THE PROGRAM AS WELL AS TO EDUCATE THEM ABOUT THE NEED TO REDUCE AUTOMOBILE POLLUTION WE'RE GETTING WORKERS' INPUT NOW SO THAT THE SOLUTIONS THAT WE OFFER ACTUALLY COME FROM THEM SAYS JOE WOJTECKI A SPOKESMAN FOR THE COMPANY THE BIGGEST CONCERN HOECHST IS HEARING SO FAR IS FROM WORKING MOTHERS WHO WANT ASSURANCES THAT THEY WILL HAVE ACCESS TO EMERGENCY TRANSPORTATION IF THEIR CHILDREN GET SICK THE POTENTIAL CLASH WITH LABOR COULD LEAD TO LEGAL CHALLENGES FORCING WORKERS TO CHANGE THEIR DRIVING HABITS COULD LEAD TO UNIONCONTRACT FIGHTS LAWYERS SAY AND MANY EMPLOYEES ARE LIKELY TO ARGUE THAT THEIR PERSONAL RIGHTS ARE BEING INFRINGED THE PUBLICSCHOOL SYSTEM IN ROCKFORD ILL HAS SUBTLY SEGREGATED ITS STUDENTS BY RACE EVEN IN SCHOOLS THAT MAY OUTWARDLY APPEAR TO BE INTEGRATED A FEDERAL MAGISTRATE JUDGE HAS FOUND THE DECISION IS BELIEVED TO BE AMONG THE FIRST TO FOCUS HEAVILY ON SEGREGATION WITHIN INDIVIDUAL SCHOOLS AS WELL AS ON MORE TRADITIONAL CLAIMS THAT STUDENTS HAVE BEEN ASSIGNED TO SCHOOLS BASED ON RACE AND THAT STUDENTS IN MOSTLY MINORITY SCHOOLS HAVE BEEN DISCRIMINATED AGAINST IN A MORE THAN 500PAGE OPINION THE JUDGE P MICHAEL MAHONEY FOUND THAT THE ROCKFORD SCHOOL DISTRICT HAD USED TRACKING PROGRAMS WHICH ARE DESIGNED TO SEPARATE STUDENTS OF VARYING ABILITIES TO INTENTIONALLY SEGREGATE WHITE STUDENTS FROM MINORITY STUDENTS FOR EXAMPLE HE SAID WHITE STUDENTS WHO DID POORLY ON PLACEMENT TESTS WERE GIVEN BETTER ACADEMIC OPPORTUNITIES THAN BLACK STUDENTS WHO SCORED SIMILARLY THE CASE JUDGE MAHONEY SAID IS A STORY OF A SCHOOL DISTRICT THAT AT TIMES HAS COMMITTED SUCH OPEN ACTS OF DISCRIMINATION AS TO BE CRUEL AND COMMITTED OTHERS WITH SUCH SUBTLETY AS TO RAISE DISCRIMINATION TO AN ART FORM THE DECISION CONSISTS OF A REPORT AND RECOMMENDATIONS ALL OF WHICH MUST BE APPROVED BY JUDGE STANLEY ROSZKOWSKI THE DISTRICTCOURT JUDGE OVERSEEING THE CASE THE SUPREME COURT OPENED THE DOOR TO SUCH CLAIMS IN A 1992 OPINION FREEMAN VS PITTS WHICH SAID JUDGES SHOULD PIERCE THE VEIL OF APPARENT INTEGRATION IN ORDER TO SEE WHETHER SEGREGATION LURKS BENEATH THE SURFACE SAID LAURENCE TRIBE A HARVARD LAW SCHOOL CONSTITUTIONALLAW SPECIALIST THE ROCKFORD CASE CHARTS THE COURSE FOR A REVITALIZED DESEGREGATION LITIGATION PROCESS IN THE '90S SAID ROBERT HOWARD A CHICAGO LAWYER WHO REPRESENTED THE PLAINTIFFS IN THE CASE ANTHONY SCARIANO A LAWYER FOR THE ROCKFORD BOARD OF EDUCATION SAID THE BOARD IS COMMITTED TO REMEDYING THE FINDINGS IN THE ORDER HE SAID THE BOARD PREVIOUSLY HAD AGREED TO SETTLE THE CASE BUT BECAUSE A LOCAL TEACHERS UNION HAD OBJECTED TO SOME FEATURES OF THE PROPOSED SETTLEMENT AN APPEALS COURT REQUIRED THE CASE TO BE TRIED EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE 9311040015 931104 NUWEST FINISHES CAPITALIZATION ENGLEWOOD COLO NUWEST INDUSTRIES INC SAID IT HAS COMPLETED A CAPITALIZATION PLAN THAT WAS APPROVED AT A SPECIAL MEETING OF SHAREHOLDERS IN OCTOBER THE COMPANY REFINANCED OR EXCHANGED SUBSTANTIALLY ALL OF ITS EXISTING DEBT OF 536 MILLION IN ADDITION THE COMPANY SAID IT COMPLETED A LONGTERM LEASE WITH CATERPILLAR FINANCIAL SERVICES CORP FOR 13 MILLION IN MOBILE MINING EQUIPMENT TO OPERATE NUWEST'S PHOSPHATE MINE UNDER A NEW CONTRACT WITH RHONE POULENC INC 9311040014 931104 FOR COFFEE'S BIG THREE A GOURMETBREW BOOM PROVES EMBARRASSING BUST BY KATHLEEN DEVENY STAFF REPORTER OF THE WALL STREET JOURNAL AS AMERICANS INDULGE IN A COFFEE KLATCH THAT HAS ENRICHED MANY MAKERS AND SELLERS OF GOURMET BREWS THE BIG THREE PURVEYORS OF TRADITIONAL GROUND COFFEES PROCTER & GAMBLE KRAFT GENERAL FOODS AND NESTLE HAVE BEEN LEFT BEHIND DOLLAR SALES OF COFFEE EXCLUDING INSTANT COFFEE IN SUPERMARKETS FELL 6 DURING THE 13 WEEKS ENDED AUG 29 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE FOR THE 52 WEEKS ENDED ON THE SAME DATE SALES DECLINED 64 TOGETHER THE TOP THREE BRANDS FOLGERS MAXWELL HOUSE AND HILLS BROS ACCOUNT FOR MORE THAN 60 OF GROUND COFFEE'S ANNUAL 183 BILLION IN SUPERMARKET SALES MISSING OUT ON THE COFFEE BOOM REPRESENTS A SERIOUS GAFFE ON THE PART OF COFFEE'S BIG THREE MARKETING CONSULTANTS SAY FOR YEARS THE TOP COFFEE MARKETERS HAVE FOCUSED MORE ON BUILDING BRAND NAMES THAN ON CREATING BETTER BREWS TO KEEP COSTS LOW THEY TYPICALLY MIX CHEAPER ROBUSTA BEANS WITH HIGHER QUALITY ARABICA VARIETIES AND WHEN COFFEE IS ROASTED GROUND AND PACKAGED IN HUGE QUANTITIES FRESHNESS OFTEN SUFFERS AS SALES SOFTENED SOME MARKETERS MAY HAVE COMPOUNDED THEIR PROBLEMS BY TRIMMING THEIR ADVERTISING BUDGETS FOR EXAMPLE NESTLE SA DIDN'T SPEND ANYTHING AT ALL ON ADVERTISING ITS HILLS BROS BRAND DURING THE FIRST SEVEN MONTHS OF 1993 ACCORDING TO COMPETITIVE MEDIA REPORTING INC DURING THE SAME PERIOD MAXWELL HOUSE MADE BY THE KRAFT GENERAL FOODS UNIT OF PHILIP MORRIS COS NEARLY DOUBLED ITS AD SPENDING COMPARED WITH A YEAR EARLIER WHEN IT SPENT A MERE 96 MILLION TO HAWK THE NATION'S NO 2 COFFEE BRAND BUT EVEN AT THIS YEAR'S HIGHER LEVER AD SPENDING FOR MAXWELL HOUSE LAGGED BEHIND THE AD BUDGET FOR PROCTER & GAMBLE CO'S FOLGERS BRAND BY 26 COMPETITIVE MEDIA SAYS A SPOKESWOMAN FOR NESTLE DECLINED TO DISCUSS THE PERFORMANCE OF HILLS BROS PROCTER & GAMBLE AND KRAFT GENERAL FOODS BOTH BLAME DECLINING SUPERMARKET SALES LARGELY ON A SHIFT IN SHOPPING HABITS MORE CONSUMERS NOW PICK UP THEIR GROUND COFFEE IN MASSMERCHANDISERS OR WAREHOUSECLUB STORES THEY SAY OR BUY CUPS OF BREWED COFFEE IN RESTAURANTS AND CAFETERIAS AND SUCH SALES AREN'T REFLECTED IN THE DATA FROM INFORMATION RESOURCES BUT THE COFFEE GIANTS ALSO CONCEDE THE GROWING POPULARITY OF FANCIER BREWS IS HURTING THEM SUPERMARKET SALES OF WHOLEBEAN COFFEES ARE ROBUST ACCORDING TO BROTHERS GOURMET COFFEES INC A BOCA RATON FLA COMPANY THAT IS ONE OF THE LARGEST SUPPLIERS OF SPECIALTY BEANS JIM WAYMAN EXECUTIVE VICE PRESIDENT OF BROTHERS SAYS SALES OF SPECIALTY BEANS TO GROCERY CHAINS ARE RISING BY ABOUT 25 ANNUALLY THE SPECIALTYCOFFEE TREND HAS EXTENDED SO FAR THAT PASSENGERS ON ALL NORTHWEST AIRLINES FLIGHTS CAN NOW GET COFFEE MADE FROM DARKROASTED GOURMET BEANS SHOPPERS IN NORDSTROM DEPARTMENT STORES CAN DRINK A POTENT BLEND OF STARBUCKS BRAND BEANS EVEN MCDONALD'S CORP IS TESTING COFFEE BREWED FROM FRESHLY GROUND BEANS IN SEVERAL DOZEN RESTAURANTS IN BOSTON THE GROWING DEMAND FOR SPECIALTY COFFEES WHICH AVERAGE 585 A POUND REPRESENTS A BIG CHANGE IN CONSUMER BEHAVIOR NOT LONG AGO MOST COFFEE DRINKERS WERE CONTENT TO PICK UP REGULAR GROUND COFFEE ON THEIR WEEKLY TRIP TO THE GROCERY STORE BUT TASTE MORE THAN HEALTH PRICE OR CONVNIENCE HAS BECOME THE COFFEE CONSUMER'S PRIORITY MANY COFFEE ENTHUSIASTS NOW KNOW THE DIFFERENCE BETWEEN SUMATRA AND FRENCH ROAST AND DON'T MIND FUSSING WITH COFFEE GRINDERS INDEED MANUFACTURER SHIPMENTS OF COFFEE GRINDERS DOUBLED BETWEEN 1987 AND 1988 AND HAVE CONTINUED TO GROW STEADILY CAROL DEMARTIN 29 IS AN AVID COFFEE DRINKER BUT SAYS SHE NEVER BUYS THE STUFF IN CANS MS DEMARTIN WHO WORKS IN ADVERTISING AND LIVES IN NORTHERN NEW JERSEY BUYS ONLY GOURMET WHOLE BEANS WHICH SHE ORDERS BY MAIL TO PRESERVE FRESHNESS SHE KEEPS THE BEANS IN HER FREEZER AND GRINDS THE BEANS AS NEEDED PEOPLE WANT TO BE SATISFIED THEY WANT A TREAT SAYS GRADY SAUNDERS PRESIDENT OF HERITAGE COFFEE CO WHEN HIS COFFEE CAFE OPENED IN JUNEAU ALASKA IN 1974 THE STORE'S ESPRESSO MACHINE WAS USED PRIMARILY TO MAKE DRINKS FOR EMPLOYEES NOW HERITAGE SELLS MORE THAN 1200 CUPS OF ESPRESSOBASED DRINKS DAILY DURING JUNEAU'S SUMMER TOURIST SEASON AND DOES A HEALTHY BUSINESS SUPPLYING GOURMET BEANS TO SUPERMARKETS IN SOUTHEASTERN ALASKA US COFFEE CONSUMPTION PEAKED IN 1962 ACCORDING TO THE NATIONAL COFFEE ASSOCIATION OF THE USA BUT MORE THAN HALF OF AMERICANS OVER THE AGE OF 10 STILL ENJOY A JOLT IN THE MORNING AND AFTER YEARS OF STEADY DECLINE CONSUMPTION APPEARS TO BE PERKING UP LAST WINTER COFFEE DRINKERS DRANK 358 CUPS OF COFFEE A DAY THE HIGHEST LEVEL SINCE 1979 WHEN COFFEE DRINKERS DRANK 360 CUPS DAILY THE RETURN TO CAFFEINE COMES AT A TIME WHEN MANY AMERICANS ARE LOSING INTEREST IN MAINTAINING THE HEALTHFUL REGIMENS OF THE 1980S SPECIALTYCOFFEE MARKETERS ALSO LINK INCREASING CONSUMPTION TO THE FACT THAT IT HAS NEVER BEEN EASIER TO GET A GOOD CUP OF COFFEE IT IS AN OPPORTUNITY FOR CONSUMERS TO TASTE SOMETHING THAT IS AS DIFFERENT FROM REGULAR COFFEE AS FRESH SQUEEZED ORANGE JUICE IS FROM FROZEN CONCENTRATE SAYS HOWARD SCHULTZ CHAIRMAN OF STARBUCKS CORP A CHAIN OF COFFEE RETAILERS THAT SAYS IT HAS 12 MILLION CUSTOMERS A WEEK ONCE CONSUMERS HAVE TASTED OUR COFFEE IT IS VERY DIFFICULT FOR THEM TO BRING MAXWELL HOUSE OR FOLGERS BACK INTO THEIR HOME THE RISE OF FLAVORED COFFEES AND MILKY ESPRESSOBASED DRINKS ALSO HAS DRAWN NEW CONSUMERS CARA BROICH 27 NEVER DRANK COFFEE UNTIL SHE RECEIVED AN ESPRESSO MACHINE FOR HER BIRTHDAY NOW MRS BROICH WHO WORKS AT A HEALTHMAINTENANCE ORGANIZATION IN A MINNEAPOLIS SUBURB OFTEN MAKES CAPPUCCINO AT HOME I GO TO THE STORE LOOK AT THE DIFFERENT FLAVORS BUY THE BEANS AND GRIND THEM SHE SAYS BUT I STILL DON'T LIKE ANY OTHER KIND OF COFFEE SO FAR EFFORTS BY THE BIG THREE TO REACH COFFEE CONNOISSEURS HAVE LARGELY FALLEN FLAT THE COMPANIES NOW SELL SUCH FANCYSOUNDING VARIETIES AS MAXWELL HOUSE RICH FRENCH ROAST AND FOLGERS GOURMET SUPREME BUT SALES OF THE MAXWELL HOUSE PRODUCT DECLINED SHARPLY DURING THE RECENT 13WEEK PERIOD WHILE SALES OF GOURMET SUPREME WERE INSIGNIFICANT KRAFT GENERAL FOODS IS ALSO MARKETING CAPPIO A PREPARED CAPPUCCINO DRINK BUT THE MARKET FOR SUCH BEVERAGES IS DEVELOPING SLOWLY IN RESPONSE TO THE RISE OF SPECIALTY COFFEES NESTLE LAUNCHED NESCAFE CAPPUCCINO IN SEPTEMBER ALTHOUGH THE COMPANY SAYS THE PRODUCT HAS A MORE AUTHENTIC TASTE THAN OTHER INSTANT ESPRESSO DRINKS ON THE MARKET IT WILL BE A TOUGH SELL INSTANT COFFEES WERE CONSIDERED AN IMPRESSIVE TECHNOLOGY WHEN THEY WERE INTRODUCED IN 1939 BUT EVEN NESTLE CONCEDES THAT YOUNGER CONSUMERS THESE DAYS AREN'T IMPRESSED WITH THE TASTE NONETHELESS KRAFT GENERAL FOODS IS ENJOYING SOME SUCCESS WITH A CAPPUCCINO MIX OF ITS OWN ITS FLAVORED INTERNATIONAL COFFEE MIXES ALSO ARE STRONG SELLERS GROUND COFFEES WILL UNDOUBTEDLY CONTINUE TO BE A HARD SELL THE CONSUMER IS JUST REALLY TIRED OF WHAT HE OR SHE FINDS IN A CAN OF COFFEE SAYS TOM PIRKO PRESIDENT OF THE BEVERAGE INDUSTRY CONSULTING FIRM BEVMARK INC IT JUST DOESN'T STIMULATE THEM MARKET SHARE FIGURES FOR THE BIGGEST COFFEE BRANDS IN A CHART ACCOMPANYING THURSDAY'S MARKETSCAN ARTICLE WERE FROM 1992 DURING THE 13 WEEKS ENDED AUG 29 1993 PROCTER & GAMBLE CO'S FOLGERS BRAND ACCOUNTED FOR 281 OF COFFEE SALES IN SUPERMARKETS NOT INCLUDING INSTANT COFFEES PHILIP MORRIS COS' MAXWELL HOUSE ACCOUNTED FOR 239 PRIVATELABEL COFFEES 83 AND NESTLE SA'S HILLS BROS 66 9311040013 931104 WHITE HOUSE IS TO PROPOSE NEW ENVIRONMENTAL OFFICE WASHINGTON THE CLINTON ADMINISTRATION WILL PROPOSE CREATING A NEW WHITE HOUSE OFFICE TO PERFORM CERTAIN FUNCTIONS OF THE SOONTOBE DEFUNCT COUNCIL ON ENVIRONMENTAL QUALITY THE OFFICE WOULD OVERSEE THE FILING OF ENVIRONMENTAL IMPACT STATEMENTS BY FEDERAL AGENCIES IT WOULD HAVE A SEVENPERSON STAFF ACCORDING TO ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR CAROL BROWNER WITH AN EIGHTH PERSON TO BE ADDED NEXT YEAR THE COUNCIL ON ENVIRONMENTAL QUALITY HAS LONG BEEN TARGETED FOR ELIMINATION BY THE CLINTON ADMINISTRATION WHICH MOVED MANY OF ITS FUNCTIONS TO THE MUCH MORE POWERFUL WHITE HOUSE OFFICE ON ENVIRONMENTAL POLICY HEADED BY KATHLEEN MCGINTY BUT SOME ENVIRONMENTAL GROUPS HAVE OPPOSED MOVING ALL SUCH FUNCTIONS TO MS MCGINTY'S OFFICE BECAUSE UNLIKE THE STATUTORILYMANDATED COUNCIL HER OFFICE COULD BE ELIMINATED BY A PRESIDENT WITHOUT CONSULTING CONGRESS 9311040012 931104 INTERNATIONAL PAPER UNIT MERGER PURCHASE NY INTERNATIONAL PAPER CO SAID ITS UNIT RESOURCENET INTERNATIONAL AGREED TO BUY JB PAPERS INC A UNION NJ PAPERDISTRIBUTION COMPANY TERMS WEREN'T DISCLOSED AND THE ACQUISITION IS SUBJECT TO REGULATORY APPROVAL INTERNATIONAL PAPER A PAPER AND FORESTPRODUCTS COMPANY SAID IT EXPECTS THE DEAL TO CLOSE DEC 1 JB PAPERS WHICH OPERATES IN THE NEW YORK NEW JERSEY AND PHILADELPHIA MARKETS HAD 1992 REVENUE OF APPROXIMATELY 75 MILLION RESOURCENET WITH ANNUAL SALES OF 3 BILLION IS A PAPER PACKAGING AND PRINTINGEQUIPMENT DISTRIBUTOR 9311040011 931104 ECONOMY NO ACCELERATION IN THE RECOVERY REPORTED BY FED SLOW TO MODERATE' GROWTH AS WELL AS LOW INFLATION NOTED BY DISTRICT BANKS BY LUCINDA HARPER AND MELISSA LEVY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THERE HAS BEEN VIRTUALLY NO ACCELERATION IN THE PACE OF THE RECOVERY A NEW SURVEY BY THE 12 FEDERAL RESERVE BANKS SAID USING THE SAME SLOW TO MODERATE DESCRIPTION OF ECONOMIC GROWTH AS IT DID IN ITS LAST REPORT THE REPORT BASED ON INFORMATION GATHERED FROM BUSINESSES AROUND THE COUNTRY DURING THE SIX WEEKS ENDED OCT 26 DID NOTE SOME ENCOURAGING ECONOMIC DEVELOPMENTS THOUGH THE MANUFACTURING SECTOR SHOWED GAINS IN ALMOST ALL FED DISTRICTS REFLECTING A PICKUP IN DEMAND FOR SEVERAL ITEMS THERE WERE EVEN POCKETS OF EMPLOYMENT GROWTH AT FACTORIES SOMETHING THAT HAS BEEN ELUSIVE FOR MOST OF THIS RECOVERY IN ADDITION INFLATION IS STILL VERY MUCH UNDER CONTROL RETAIL PRICES REMAIN FLAT OR COMPETITIVE ACROSS MUCH OF THE NATION THE REPORT SAID THERE WERE A FEW PRICE INCREASES OUTSIDE THE RETAIL SECTOR HOWEVER LUMBER PRICES HAVE BEEN EDGING UP IN THE ATLANTA DISTRICT AND CONSTRUCTIONRELATED INDUSTRIES IN DALLAS HAVE BEEN RAISING THEIR PRICES AS WELL ROBERT MCTEER PRESIDENT OF THE DALLAS FEDERAL RESERVE BANK SAID YESTERDAY THAT RECENT ECONOMIC REPORTS HAVE BEEN ENCOURAGING THE REMARKS TO REPORTERS IN DALLAS COME AS THE HOUSING SECTOR APPEARS TO BE ON THE REBOUND AND THE MANUFACTURING SECTOR IS SHOWING NEW SIGNS OF LIFE WE'VE GOT AN ACCELERATING GROWTH RATE INFLATION UNDER CONTROL AND RECORD LOW INTEREST RATES MR MCTEER SAID SOMEONE OUGHT TO STAND UP AND APPLAUD THE REPORT WAS PREPARED FOR USE AT THE NEXT MEETING OF FED POLICY MAKERS SCHEDULED FOR NOV 16 HERE IS A SUMMARY OF THE REPORT BY THE 12 FED DISTRICT BANKS BOSTON THE ECONOMY CONTINUED TO IMPROVE GRADUALLY INFLATION REMAINED LOW AND DEMAND FOR MANUFACTURED PRODUCTS INCREASED HOME SALES WERE UP AND RETAIL SALES WERE MIXED NEW YORK ECONOMIC CONDITIONS WERE GENERALLY MIXED IN RECENT WEEKS RETAIL SALES WERE DISAPPOINTING IN AUGUST BEFORE PICKING UP IN SEPTEMBER CONSTRUCTION ACTIVITY WAS STAGNANT BUT VACANCY RATES OF EXISTING UNITS DECLINED UNEMPLOYMENT LEVELS REMAINED ABOVE THE NATIONAL AVERAGE PHILADELPHIA MANY SECTORS POSTED MODEST GAINS MANUFACTURERS REPORTED INCREASES IN NEW ORDERS SHIPMENTS AND EMPLOYMENT LEVELS LENDING PATTERNS AT BANKS EDGED UP AND RETAILERS SAID SALES LEVELS WERE HIGHER THAN LAST YEAR'S PACE CLEVELAND INDUSTRIAL EXPANSION AND A PICKUP IN AUTO SALES HAVE HELPED THE ECONOMY GAIN MOMENTUM THE IMPROVED CONDITIONS WERE REFLECTED IN AN INCREASED DEMAND FOR CONSUMER LOANS BUT MANUFACTURERS ARE STILL WARY ABOUT LONGTERM BUSINESS PROSPECTS AND ARE CAREFULLY MONITORING INVENTORIES AND EMPLOYMENT LEVELS RICHMOND MANUFACTURING FINALLY GREW AFTER A LONG FLAT TREND THE TOURISM FINANCE AND REALESTATE SECTORS ALSO ROSE AND AGRICULTURE BEGAN ITS RECOVERY FROM THE SUMMER DROUGHT RETAIL AND PORT ACTIVITIES WERE MIXED ATLANTA THE ECONOMY CONTINUED TO EXPAND EVEN THOUGH BUSINESSES CHARACTERIZED THE GROWTH AS SLUGGISH NEW ORDERS IMPROVED BUT PRODUCTION AND EMPLOYMENT LEVELS REMAINED FLAT HOUSING ACTIVITY BOTH CONSTRUCTION AND SALES PROVIDED A BOOST CONSUMER SPENDING LEVELED OFF AND COMMERCIALLOAN DEMAND HASN'T IMPROVED CHICAGO ECONOMIC ACTIVITY PICKED UP MOMENTUM BUT MOST GAINS WERE MODEST INCREASED AUTO PRODUCTION PACED AN IMPROVED MANUFACTURING SECTOR RETAIL SALES AND HOUSING ACTIVITY GREW AS DID INDUSTRIALEMPLOYMENT OPPORTUNITIES THE FALLHARVEST YIELD WAS LOWER THAN EXPECTED ST LOUIS RECOVERY FROM SUMMER FLOODING IS STILL SLOW ESPECIALLY IN THE PACE OF AGRICULTURAL HARVESTS RESIDENTIAL CONSTRUCTION PROVIDED A BOOST AND THE DEMAND FOR CONSUMER LOANS IS UP MINNEAPOLIS CONSTRUCTION WAS STRONG EMPLOYMENT GREW MODESTLY AND PRICES WERE STEADY WITHOUT INFLATIONARY PRESSURES THE MANUFACTURING AND MINING INDUSTRIES WERE STABLE AND THERE WERE INCREASES REPORTED IN OIL AND LIVESTOCK PRODUCTION THE SUMMER PRODUCED A BETTERTHANEXPECTED TOURIST SEASON BUT AGRICULTURE SUFFERED KANSAS CITY CONTINUED MODERATE GROWTH WAS PACED BY INCREASED HOUSING ACTIVITY RETAIL SALES AND DEMAND FOR BOTH COMMERCIAL AND CONSUMER LOANS PRICES GENERALLY REMAINED STEADY EVEN THOUGH MANUFACTURING COSTS ROSE SLIGHTLY CATTLE FEEDERS AND RANCHERS HAVE ENJOYED SEVERAL MONTHS OF SOLID PROFITS DALLAS ECONOMIC ACTIVITY CONTINUED TO EXPAND AT A MODERATE PACE WAGES AND EMPLOYMENT OPPORTUNITIES WERE REPORTED TO HAVE INCREASED SLIGHTLY AS DID NEW ORDERS AND PRODUCTION LEVELS RETAIL PRICES AND AGRICULTURAL PRODUCTION WERE MIXED LENDING ACTIVITY WAS LOW BUT CONSTRUCTION OF BOTH RESIDENTIAL AND COMMERCIAL UNITS WAS STRONG SAN FRANCISCO THE ECONOMY IMPROVED IN THE DISTRICT AS A WHOLE BUT THE OUTLOOK FOR CALIFORNIA WESTERN WASHINGTON AND HAWAII WASN'T SO POSITIVE RETAIL ACTIVITY STRENGTHENED WITH NO INFLATION ON THE HORIZON MANUFACTURING WAS MIXED DUE TO WEAKNESS IN AEROSPACE AND DEFENSERELATED INDUSTRIES HOUSING ACTIVITY WAS ALSO VARIED SUMMARY OF ECONOMIC DEVELOPMENTS IN THE 12 FEDERAL RESERVE DISTRICTS IN SEPTEMBER AND OCTOBER 9311040010 931104 BUSINESS BRIEF CONTINENTAL SWINGS TO 3RDPERIOD PROFIT CNA LOSS NARROWED RELIANCE NET ROSE NEW YORK CONTINENTAL CORP SAID IT REVERSED ITS YEARAGO NET LOSS FOR THE THIRD QUARTER AND EARNINGS FROM CONTINUING OPERATIONS INCREASED NEARLY FIVEFOLD FROM 1992 DUE TO STRONG PERFORMANCES OF CERTAIN INSURANCE PRODUCTS AND A SHARP DROP IN UNDERWRITING LOSSES FOR THE QUARTER THE PROPERTY AND CASUALTY INSURANCE COMPANY REPORTED NET INCOME OF 45 MILLION OR 80 CENTS A SHARE COMPARED WITH THE YEARAGO LOSS OF 1421 MILLION OR 260 A SHARE THE YEARAGO RESULT REFLECTS A LOSS FOR DISCONTINUED OPERATIONS OF 1517 MILLION OR 276 A SHARE EARNINGS FROM CONTINUING OPERATIONS ROSE TO 444 MILLION OR 79 CENTS A SHARE FROM THE YEARAGO 96 MILLION OR 16 CENTS A SHARE CONTINENTAL CHAIRMAN AND CHIEF EXECUTIVE JOHN P MASCOTTE SAID THE GROWTH WAS DRIVEN BY THE SUCCESS OF THE COMPANY'S PREFERRED PACKAGE AND SPECIALTY INSURANCE LINES CONTINUING INSURANCE OPERATIONS REPORTED PRETAX PROFIT OF 569 MILLION MORE THAN DOUBLE LAST YEAR'S 209 MILLION THE IMPROVEMENT REFLECTED A SHARP DROP IN UNDERWRITING LOSSES TO 98 MILLION FROM 2836 MILLION MAINLY DUE TO DRAMATICALLY LOWER CATASTROPHERELATED CHARGES THE 1992 RESULTS INCLUDED THE IMPACT OF CLAIMS PAID FOR DAMAGE DONE BY HURRICANES ANDREW AND INIKI NET WRITTEN PREMIUMS FOR THE QUARTER ROSE MODERATELY TO 12 BILLION FROM 1 BILLION A YEAR AGO REVENUE FOR THE QUARTER INCREASED TO 14 BILLION FROM 12 BILLION CONSOLIDATED NET INVESTMENT INCOME FELL TO 1282 MILLION FROM 1438 MILLION AND REALIZED PRETAX CAPITAL GAINS DECLINED SHARPLY TO 307 MILLION FROM THE YEARAGO 1664 MILLION CNA FINANCIAL CORP A CHICAGOBASED MULTILINE INSURER REPORTED ITS THIRDQUARTER NET LOSS NARROWED TO 2083 MILLION OR 339 A SHARE AFTER A CHARGE OF 325 MILLION RELATED TO AN ADDITION TO LOSS RESERVES TAKEN IN AUGUST TO COVER POTENTIAL LOSSES FROM ASBESTOSRELATED BODILY INJURY CLAIMS AT ITS LARGEST SUBSIDIARY THE YEARAGO LOSS WAS 33 MILLION OR SEVEN CENTS A SHARE CNA FINANCIAL IS 83OWNED BY LOEWS CORP NEW YORK RELIANCE GROUP HOLDINGS INC NEW YORK POSTED A SHARP RISE IN THIRDQUARTER NET INCOME TO 305 MILLION OR 34 CENTS A SHARE FROM 13 MILLION OR TWO CENTS A SHARE A YEAR AGO REFLECTING BETTER INSURANCE OPERATING RESULTS AND SIGNIFICANTLY HIGHER CAPITAL GAINS LARGELY FROM THE SALE OF EQUITY INVESTMENTS THE YEARAGO QUARTER INCLUDED PROFIT FROM DISCONTINUED LIFE INSURANCE OPERATIONS OF 30 MILLION OR 40 CENTS A SHARE RELIANCE SOLD THOSE OPERATIONS IN JULY FOR ABOUT 550 MILLION AS PART OF ITS STRATEGY TO FOCUS ON PROPERTY/CASUALTY AND TITLE INSURANCE REVENUE ROSE 62 TO 7449 MILLION FROM 7012 MILLION 9311040007 931104 LEISURE & ARTS ON FILM CLINTON'S WAR ROOM' EMPIRE'S REMAINS' BY JULIE SALAMON BILL CLINTON IS A BIT PLAYER IN THE WAR ROOM AN ENTERTAINING DOCUMENTARY FILM ABOUT HIS PRESIDENTIAL CAMPAIGN THENCANDIDATE CLINTON SHOWS UP ONLY NOW AND AGAIN SHOVELING IN GRANOLA AND BANANAS WHILE CONSULTING WITH HIS HANDLERS GETTING SPAT ON BY A BABY DURING A CAMPAIGN STOP DEFLECTING REPORTERS' QUESTIONS ABOUT GENNIFER FLOWERS HILLARY CLINTON APPEARS EVEN MORE INFREQUENTLY JUST LONG ENOUGH FOR VIEWERS TO MAKE A MENTAL NOTE ON THE CHANGING SHAPE OF HER HAIR THIS WASN'T EXACTLY WHAT THE FILMMAKERS DA PENNEBAKER AND CHRIS HEGEDUS HAD IN MIND WHEN THEY SET OUT TO MAKE A FILM ABOUT A MODERN POLITICAL CAMPAIGN THEY WANTED TO FOCUS ON A CANDIDATE ANY CANDIDATE BUT DENIED ACCESS TO ANY AND ALL CANDIDATES THEY SETTLED ON WHAT THEY COULD GET THE CLINTON CAMPAIGN STAFF AS IT TURNS OUT WATCHING THE CAMPAIGN UNFOLD FROM THE VANTAGE OF THE WAR ROOM PROVES TO BE MUCH MORE ENTERTAINING THAN THE FRONT LINES WHERE THE ACTION WAS PHOTOGRAPHED AND REPORTED AD NAUSEAM WITH THEIR UNOBTRUSIVE CAMERAS THE FILMMAKERS BECAME PRIVY TO THE REALLY IMPORTANT ISSUES THAT PLAGUE TODAY'S MEDIACONSCIOUS CAMPAIGN PLANNERS HOW DO WE CUT THIS AD DOWN BY THREE SECONDS SHOULD CLINTON SUPPORTERS HOLD IDENTICAL SIGNS OR NOT AT THE DEMOCRATIC CONVENTION SOMEONE WHINES THAT JERRY BROWN'S SIGNS HAVE BIGGER LETTERS AND SHOW UP MUCH BETTER ON CAMERA THERE'S ALSO THE HUMAN INTEREST STUFF LIKE WATCHING CAMPAIGN WORKERS STUFF THEMSELVES WITH DONUTS AND OTHER SNACKS EVENTUALLY STARS DO EMERGE TURNING THE WAR GAME INTO THE SERIOUS PERSON'S VERSION OF THE HOLLYWOOD BUDDY MOVIE FEATURING MASTER STRINGPULLERS JAMES CARVILLE THE CLINTON CAMPAIGN MANAGER AND GEORGE STEPHANOPOULOS THE CAMPAIGN'S COMMUNICATIONS DIRECTOR THE UNNATURALLY UNFLAPPABLE MR STEPHANOPOULOS IS THE SOBER SIDEKICK PUPPYISH BUT CAUTIOUS HE BECOMES STRAIGHT MAN TO MR CARVILLE THE IMPASSIONED CAJUN QUIPSTER WHO MAKES HIS MISCHIEF WITH A VOICE THAT SOUNDS LIKE IT'S JUST EMERGED FROM A MOUTHFUL OF MOLASSES MR STEPHANOPOULOS CONSIDERS MR CARVILLE BLURTS EXPERTLY IF I THINK OF AN OLD CALENDAR I SEE GEORGE BUSH'S FACE ON IT HE JUST REEKS OF YESTERDAY IT'S MR CARVILLE WHO COMMANDS ATTENTION AS HE TRIES AND FAILS AT MINOR DIRTY TRICKS LIKE TRYING TO CONVINCE A NETWORK PRODUCER TO NAIL MR BUSH FOR PRINTING SOME CAMPAIGN POSTERS IN BRAZIL MR CARVILLE'S GIRLFRIEND BUSH CAMPAIGN STRATEGIST MARY MATALIN IS A TOUGHIE WHO DISMISSES MR CARVILLE'S MAN MR CLINTON AS A MASTER OF GERALDOLIKE SCHTICK INDEED PERHAPS THERE'S A SEQUEL IN THE MAKING FOR PENNEBAKER AND HEGADUS THE FILM ADAPTATION OF THE BOOK MR CARVILLE AND MS MATALIN ARE WRITING ABOUT THEIR CAMPAIGN EXPERIENCES IN SOME WAYS MERCHANT IVORY'S SHREWD AND BEAUTIFUL FILM ADAPTION OF KAZUO ISHIGURO'S THE REMAINS OF THE DAY IS A BEHINDTHESCENES MOVIE AS WELL IT EXAMINES THE SELFDEFEATING RITUALS OF ENGLISH ARISTOCRACY FROM THE POINT OF VIEW OF A BUTLER WHO HAS DEVOTED HIS LIFE TO PRESERVING THEM HE HAS NEVER QUESTIONED THE PERSON HE WORKS FOR HE SIMPLY MAKES SURE THAT THE BRASS IS POLISHED THAT THE TABLE IS PROPERLY SET AS HE SEES IT HIS EMPLOYER'S JOB IS TO RULE BRITANNIA HIS JOB IS TO RULE THE STAFF AND IF THEY BOTH DO THEIR JOBS WELL BRITAIN AND THE WORLD CAN REST EASY MR ISHIGURO'S BOOK AN ELEGANT NOVEL OF MANNERS ELABORATED ON THE DESTRUCTIVENESS OF POLITICAL AND PERSONAL CANT THROUGH THE MUSINGS OF STEVENS THE BUTLER WHEN HE IS IN IS SIXTIES AND LOOKING BACK ON HIS LIFE IN YET ANOTHER BRILLIANT SCREENPLAY RUTH PRAWAR JHABVALA MANAGES TO CONVEY THE POIGNANCY AND INTELLIGENCE OF THIS REPRESSED MAN EVEN THOUGH THE FILM VIEWS HIM FROM THE OUTSIDE WE NO LONGER SEE THE WORLD THROUGH HIS EYES BUT SEE HIM AS PART OF HIS WORLD THAT WORLD IS DARLINGTON HALL A GRAND ENGLISH COUNTRY MANOR THE FILM OPENS IN 1958 WHEN DARLINGTON HALL HAS JUST BEEN RESCUED FROM DEMOLITION BY A RICH AMERICAN BUT THE STORY'S HEART LIES FURTHER IN THE PAST IN THE 1930S WHEN DARLINGTON HALL WAS IN ITS LAST GASPS OF GLORY ALREADY A MAUSOLEUM THOUGH DINNER WAS STILL BEING SERVED IN THOSE DAYS STEVENS DUTIFULLY HONORED AND OBEYED HIS MASTER EVEN THOUGH HIS MASTER WAS HOLDING BLACKTIE PEACE CONFERENCES AIMED AT CUTTING DEALS WITH THE NAZIS STEVENS AS HE WOULD EVENTUALLY TELL SOMEONE DIDN'T AGREE OR DISAGREE EVEN WHEN HIS MORAL EMPLOYER FIRED REFUGEE GIRLS HIRED AS MAIDS WHEN HE FOUND OUT THEY WERE JEWISH HIS JOB WAS TO SERVE THE FILM DEFTLY MAKES THE PARALLELS BETWEEN THE MISSPENT LIVES OF STEVENS AND LORD DARLINGTON PLAYED WITH PERFECT WEARINESS BY JAMES FOX DARLINGTON IS TRYING TO UPHOLD A CODE OF HONOR OF GENTLEMANLINESS THAT MEANT NOTHING OUTSIDE THE GATES OF DARLINGTON HALL STEVENS MIGHT COME OFF AS AN IDIOT OR A BORE YET ANTHONY HOPKINS MAKES HIM ENORMOUSLY SYMPATHETIC HE MAKES SELFCONTROL A POINT OF HONOR NEVER DEVIATING FROM THE POLITE RESPONSE NO MATTER HOW MUCH HE IS PROVOKED THE PICTURE'S MAIN PROVOCATEUR COMES IN THE PERSON OF EMMA THOMPSON AS THE YOUNG HOUSEKEEPER WHO FALLS IN LOVE WITH STEVENS HE LOVES HER TOO HOW COULD HE NOT MS THOMPSON PLAYS HER AS A PRETTY WOMAN WHO NOT ONLY IS SMART AND SKITTISH BUT WHO CAN APPRECIATE STEVENS'S OBSESSION WITH HOUSEHOLD DETAIL BUT HIS FEELINGS FOR HER LIKE EVERYTHING ELSE ARE TAMPED DOWN FOR THE GREATER GOOD THE MAINTENANCE OF THE HOUSEHOLD THE TWO ACTORS GRANDLY PAIRED BEFORE IN HOWARDS END PARRY SO COMFORTABLY ONE WISHES THEY WOULD GO ON AND ON IN FILM AFTER FILM VIDEO TIP THERE ARE MANY CHUCKLES IN REMAINS OF THE DAY AND ANTHONY HOPKINS IS WONDERFUL BUT JOHN GIELGUD STILL REMAINS ON RECORD AS THE FUNNIEST MOVIE BUTLER IN HISTORY IN ARTHUR SEE RELATED ARTICLE LEISURE & ARTS PACINO IN DE PALMA'S CARLITO'S WAY' WSJ NOV 4 1993 9311040006 931104 ASSOCIATED NATURAL GAS CORP DENVER ASSOCIATED NATURAL GAS CORP SAID IT COMPLETED THE PURCHASE OF FOUR NATURALGASPIPELINE SYSTEMS AND GASSTORAGE RIGHTS FOR 305 MILLION OF CASH AND STOCK THE SALE WAS MADE BY FORMER NOTEHOLDERS OF ENDEVCO INC THE NOTEHOLDERS RECEIVED THE PROPERTIES UPON THE CONFIRMATION OF ENDEVCO'S REORGANIZATION PLAN UNDER CHAPTER 11 OF US BANKRUPTCY CODE ASSOCIATED SAID IT PAID 205 MILLION IN CASH PLUS 264089 OF ITS SHARES 9311040005 931104 ITT BUYS LAS VEGAS PROPERTIES NEW YORK ITT CORP COMPLETED THE ACQUISITION OF DESERT INN PROPERTIES IN LAS VEGAS FROM TRACINDA CORP FOR ABOUT 160 MILLION THE CLOSING FOLLOWS THE RECEIPT OF LICENSES FROM NEVADA STATE AND CLARK COUNTY GAMING AUTHORITIES THE PROPERTIES NOW CALLED THE SHERATON DESERT INN INCLUDE AN 820UNIT HOTEL AND CASINO AN ADJOINING GOLF COURSE AND ABOUT 35 ACRES OF VACANT LAND ITT SAID THE ACQUISITION GIVES IT THE OPPORTUNITY TO ENTER THE NORTH AMERICAN LANDBASED GAMING INDUSTRY AND NOTED THAT IT PLANS TO CAREFULLY EXPAND THE RESORT'S FACILITIES ITT IS A DIVERSIFIED COMPANY WHOSE OPERATIONS RANGE FROM AUTO PARTS AND LUMBER TO INSURANCE AND HOTELS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ITT CLOSED AT 92375 DOWN 1 9311040003 931104 INTERNATIONAL RUSSIAN MILITARY ASSERTS ITSELF IN NEW DOCTRINE ONE MONTH AFTER CRUSHING OF REBELS ARMY DROPS SOVIETERA PACIFIST POSE BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIA'S NEW MILITARY DOCTRINE ADOPTED TUESDAY AND DETAILED AT A NEWS CONFERENCE YESTERDAY DESCRIBES AN ACTIVIST POLICY INCLUDING REFUSING TO RULE OUT THE USE OF NUCLEAR WEAPONS INTERVENTION BEYOND RUSSIAN BORDERS AND THE USE OF RUSSIAN FORCES TO QUELL INTERNAL CONFLICT THE DOCTRINE THE FIRST SUCH DOCUMENT SINCE THE DISINTEGRATION OF THE SOVIET UNION PROCLAIMS THAT THE THREAT OF GLOBAL NUCLEAR AND CONVENTIONAL WAR HAS GREATLY DECREASED IT DECLARES THAT RUSSIA SEES NO PARTICULAR COUNTRY AS ITS ENEMY BUT THE DOCTRINE ALSO SHOWS AN ASSERTIVENESS ON THE PART OF THE RUSSIAN MILITARY AND IT MARKS A DEPARTURE FROM THE OFFICIAL SOVIET POLICY THAT PREVAILED UNTIL NOW FOR EXAMPLE THE CONTROVERSIAL SOVIET PLEDGE NEVER TO BE THE FIRST TO USE NUCLEAR WEAPONS IN A CONFLICT HAS BEEN REMOVED ALSO RUSSIAN TROOPS ARE ALLOWED TO CROSS RUSSIAN BORDERS WHEN REPELLING AN ATTACK TO DRIVE AN ENEMY FURTHER INTO ITS OWN TERRITORY TO A CERTAIN EXTENT SUCH CHANGES MERELY ERASE THE PACIFIST RHETORIC THAT CLOTHED THE SOVIET POLICY IN THE PAST BUT THE DOCTRINE DOES REFLECT A NEW CONFIDENCE FELT BY THE MILITARY IN THE WAKE OF LAST MONTH'S CRUSHING OF THE PARLIAMENT THE DOCTRINE HAD BEEN UNDER DISCUSSION FOR ABOUT A YEAR BUT THE FINAL VERSION NEARLY FULFILLS THE WISH LIST OF THE DEFENSE MINISTRY LEADERSHIP MILITARY ANALYSTS SAY AFTER THE MILITARY STEPPED IN AGAINST THE PARLIAMENT PRESIDENT BORIS YELTSIN SAID THAT THE DRAFT DOCTRINE SUBMITTED BY DEFENSE MINSITER PAVEL GRACHEV WOULD BE THE BASIS FOR FINAL DISCUSSIONS THE DOCTRINE IS ALSO INTERESTING IN THAT IT INCLUDES A SHARP DIG AT NEIGHBORING UKRAINE WHICH SO FAR HAS REFUSED TO GIVE UP THE NUCLEAR WEAPONS IT INHERITED FROM THE SOVIET UNION RUSSIA STATES THAT IT WON'T USE NUCLEAR WEAPONS AGAINST NATIONS THAT HAVE SIGNED THE 1968 NUCLEAR NONPROLIFERATION TREATY THIS IS CLEARLY A WARNING TO UKRAINE WHICH HAS REFUSED TO SIGN THE TREATY THE DOCTRINE DEFINES A POLICY OF NUCLEAR DETERRENCE THAT IS SIMILAR TO THAT OF THE US THE AIM OF NUCLEAR WEAPONS IS THE ELIMINATION OF THE THREAT OF NUCLEAR WAR AND THE USE OF SUCH WEAPONS FOR DETERRING AGGRESSION AGAINST THE RUSSIAN FEDERATION OR ITS ALLIES SAID MR GRACHEV AT THE NEWS BRIEFING MEANWHILE CONVENTIONAL TROOPS ARE ASSIGNED A NEW ROLE THAT OF PEACEKEEPING AS PART OF JOINT EFFORTS WITH OTHER COUNTRIES THIS PROVISION IS IMMEDIATELY RELEVANT IN THE CASE OF CONFLICTS AMONG RUSSIA'S NEAREST NEIGHBORS IN THE CAUCASUS AND CENTRAL ASIA THE CLAUSE WAS ONE OF THE MOST CONTROVERSIAL BECAUSE MANY GOVERNMENT OFFICIALS AND SOME MILITARY OFFICERS OPPOSE INVOLVING RUSSIAN TROOPS IN CURRENT CONFLICTS IN GEORGIA AND TAJIKISTAN THE DOCTRINE STATES THAT THE GREATEST MILITARY THREAT TO RUSSIA NOW IS FROM LOCAL ARMED CONFLICTS AND RUSSIAN TROOPS CAN BE DEPLOYED FOR CONTAINING AND QUELLING SUCH CONFLICTS BEYOND RUSSIAN BORDERS TROOPS CAN ALSO BE STATIONED IN BASES LOCATED IN OTHER COUNTRIES THE NEW DOCTRINE DOESN'T INCLUDE ANY TARGET FIGURE FOR TROOP STRENGTH DESPITE RUSSIAN LEGISLATION THAT LIMITS IT TO 1 OF THE NATION'S POPULATION OR ABOUT 15 MILLION PEOPLE MR GRACHEV IMPLIED THAT SUCH A CEILING WAS UNREALISTIC AND WOULDN'T NECESSARILY BE RETAINED NEITHER POLITICAL ECONOMIC OR GEOGRAPHIC ASPECTS WERE CONSIDERED BY THE PARLIAMENT WHEN IT PASSED THIS LAW SAID MR GRACHEV IT'S FINE IF A STATE IS COMPACT AND DOESN'T HAVE BORDERS AS VAST AS OURS BUT OUR COUNTRY MUST BE PROTECTED OVER THOUSANDS OF KILOMETERS OF BORDERS BUT MORE TROOPS WOULD MEAN A BIGGER BUDGET WHICH SO FAR HASN'T BEEN ENVISIONED AFTER THE SOVIET UNION COLLAPSED RUSSIA CLAIMED ABOUT 28 MILLION TROOPS BUT THAT NUMBER HAS DECLINED STEADILY DUE TO ATTRITION AND POOR RECRUITMENT TODAY RUSSIA'S TROOP STRENGTH IS ESTIMATED AT APPROXIMATELY TWO MILLION ALTHOUGH RELIABLE FIGURES AREN'T AVAILABLE HIGHLIGHTS OF RUSSIA'S NEW MILITARY DOCTRINE NUCLEAR WEAPONS ARE MEANT TO DETER CONFLICT NO PLEDGE AGAINST FIRSTUSE OF NUCLEAR WEAPONS ARMED FORCES CAN CARRY OUT BOTH DEFENSIVE AND OFFENSIVE OPERATIONS NO SPECIFIC CEILING ON TROOP STRENGTH MILITARY TECHNOLOGY TO BE DEVELOPED ONLY IN KEEPING WITH NEEDS AND ECONOMIC CAPABILITIES 9311040002 931104 A SCHOOL DROPOUT IN ENGLAND DISCOVERS THE BARD OF AVON TO BE OR NOT TO BE PASSIONATE ABOUT SHAKESPEARE IS NOT A QUESTION FOR HER NOW BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL RABBITS CROSS ENGLAND KATHY MONTANAROACOTT ISN'T YOUR TYPICAL ENGLISH GROUPIE TRUE SHE WEARS SWEAT SHIRTS PROMOTING HER IDOL HAS SEEN HIS SHOWS HUNDREDS OF TIMES AND HANGS POSTERS FROM SOME OF THEM IN HER BEDROOM BUT THE OBJECT OF HER AFFECTION ISN'T JON BON JOVI OR STING OR ANYONE ELSE WHO IS LIVING THE PERSON WHO MS MONTANAROACOTT IS WILD ABOUT IS WILLIAM SHAKESPEARE SHE HAS TRAVELED TO PARIS TO SEE MUCH ADO ABOUT NOTHING SHE SPENDS HER ANNUAL TWOWEEK VACATION SEEING PLAYS AT SHAKESPEARE'S BIRTHPLACE STRATFORDONAVON AND SHE ONCE SAT THROUGH NINEHOURS OF SHAKESPEAREAN HISTORIES IN ONE DAY OF COURSE MANY PEOPLE ARE PASSIONATE ABOUT SHAKESPEARE BUT WHAT IS INTERESTING ABOUT MS MONTANAROACOTT IS THAT SHE HAS BEEN NEITHER A SCHOLAR NOR A FORMAL STUDENT OF THE BARD OF AVON OR OF ANYTHING ELSE FOR THAT MATTER SHE QUIT SCHOOL AT 16 AND HATED SHAKESPEARE WHILE SHE WAS THERE I FAILED EVERYTHING SHE SAYS INCLUDING HER FINAL ENGLISH EXAM WITH A SECTION ON ROMEO AND JULIET I COULDN'T EVEN REMEMBER THE MEMORABLE' QUOTES SHE SAYS THESE DAYS MS MONTANAROACOTT WHO IS 36 YEARS OLD WOULD BE AN ENGLISH TEACHER'S DREAM SHE IS SUCH A FIXTURE IN ROW E AT THE BARBICAN THEATRE LONDON HOME OF THE ROYAL SHAKESPEARE COMPANY EVEN THE ACTORS RECOGNIZE HER MS MONTANAROACOTT HAS ATTENDED EVERY RSC PRODUCTION SINCE 1986 MANY OF THEM THREE OR FOUR TIMES TO GET TO THE THEATER SHE TRAVELS BY TRAIN FROM HER FARMHOUSE IN THIS HAMLET 40 MILES SOUTHEAST OF LONDON ALTOGETHER SHE HAS SEEN MORE THAN 400 SHAKESPEAREAN PLAYS INCLUDING HAMLET 27 TIMES SINCE 1983 IN 1984 AFTER SEEING MUCH ADO STARRING SINEAD CUSACK IN PARIS MS MONTANAROACOTT JOINED A GROUP OF BRITONS AT THE STAGE DOOR TO CONGRATULATE MS CUSACK MS CUSACK STOPPED LOOKED AT MS MONTANAROACOTT AND SAID I THOUGHT I RECOGNIZED YOU FROM LONDON IT WAS IN 1983 THAT MS MONTANAROACOTT RECEIVED A TICKET TO MUCH ADO ABOUT NOTHING FOR HER BIRTHDAY FROM A FRIEND SHE HAD BEEN TO THE THEATER ONCE BEFORE TO SEE JESUS CHRIST SUPERSTAR THE MALE LEAD IN MUCH ADO TURNED OUT TO BE DEREK JACOBI THE DISTINGUISHED RSC ACTOR KNOWN TO MANY AMERICANS AS THE LIMPING STUTTERING ROMAN EMPEROR IN THE PUBLIC BROADCASTING SYSTEM SERIES I CLAUDIUS MS MONTANAROACOTT HARDLY EXPECTED THE 400YEAROLD PLAY TO CENTER AROUND A CONFIRMED BACHELOR AND A SHARPTONGUED FEMINIST WHO BICKER THEIR WAY TO LOVE I WALKED OUT OF THE THEATER ON A COMPLETE HIGH SHE SAYS SHE DASHED OFF A NOTE TO MR JACOBI THAT NIGHT I'M SO GLAD TO KNOW YOUR FIRST VISIT WITH US WAS SUCH A MEMORABLE ONE THE ACTOR WROTE BACK MS MONTANAROACOTT SAYS SHE HAS BEEN ON A MISSION EVER SINCE TO SHOW OTHER ORDINARY WORKING FOLKS THE JOYS OF SHAKESPEARE THESE PLAYS WERE WRITTEN FOR THE GENERAL POPULATION FOR THE LORDS AND LADIES UNEDUCATED MASSES AND EVERYONE IN BETWEEN EACH PLAY HAS ITS BAWDY BITS ITS LOVE SCENES ITS BATTLES SHE SAYS HER HUSBAND STEPHEN A HORTICULTURIST THINKS SHE IS A BIT DAFT SHE SAYS STILL HE AGREES TO SPEND THEIR TWOWEEK VACATION EACH YEAR PLAYGOING AT STRATFORDONAVON BUT UNLIKE HIS WIFE HE SAYS I DON'T LIKE TO SEE THE SAME PLAY TWICE MS MONTANAROACOTT HELPS SUPPORT HER PLAYGOING WITH A WHOLESALE BUSINESS IN CHRYSANTHEMUMS WHICH SHE GROWS BEHIND HER HOUSE SHE ALSO TOOK ON A SECOND JOB AT A HEALTH CLUB RECENTLY SHE HAS INTRODUCED 30 FRIENDS TO SHAKESPEARE MOST RECENTLY CATHERINE DEVEREAUX A PATRON OF THE HEALTH CLUB THEY WENT TO SEE THE RSC'S CURRENT PRODUCTION OF TWO GENTLEMEN OF VERONA WHICH INCLUDES A SMALL BAND WHOSE SINGER CROONS COLE PORTER TUNES DURING BREAKS IN THE ACTION MS DEVEREAUX A BOOKKEEPER CONFIDES AT INTERMISSION SHE IS HAVING TROUBLE FOLLOWING THE ELIZABETHAN VERSE I WASN'T SURE WHEN I SHOULD LAUGH SHE SAYS IT DEFINITELY GETS BETTER AS YOU GO ON MS MONTANAROACOTT ASSURES HER APPARENTLY IT DID A FEW DAYS LATER MS DEVEREAUX SAYS SHE IS READY TO TRY A TRAGEDY MACBETH BRIAN TELFER A 58YEAROLD CARPET LAYER WAS ONE OF MS MONTANAROACOTT'S EARLY RECRUITS FROM THE TAMING OF THE SHREW HE WORKED UP TO ATTENDING A FIVEHOUR UNABRIDGED VERSION OF HAMLET AT THE END I DIDN'T FEEL EXHAUSTED AT ALL RECALLS MR TELFER WHO LEFT SCHOOL AT 15 FOR THE ROYAL NAVY I WAS BEGINNING TO SEE WHAT I'D HEARD PEOPLE SAY ABOUT THE POWER THE STRENGTH AND DIVERSITY OF SHAKESPEARE HE ADDS THAT HIS MATES JUST SCRATCH THEIR HEADS WHEN HE TALKS LIKE THAT WITH CONVERTS LIKE MR TELFER MS MONTANAROACOTT HAS SOME ADVICE FOR ENGLISH TEACHERS THEY JUST ANALYZE THE PLAYS TO DEATH WHY DID HE PICK UP THE KNIFE IN THAT WAY AT THAT POINT' SHE INTONES MIMICKING A TEACHER SHE HAD THE PLAYS SHOULD BE TAKEN FOR WHAT THEY ARE GOOD THEATER IN OTHER WORDS TAUGHT FROM THE STAGE LESS FROM THE PAGE NOW MS MONTANAROACOTT'S INTEREST IS OBSESSIVE BOOKSHELVES IN HER LIVING ROOM ARE FULL OF BIOGRAPHIES OF HISTORICAL FIGURES IN SHAKESPEARE PLAYS AND OF COURSE THERE ARE VOLUMES CONTAINING THE PLAYWRIGHT'S COMPLETE WORKS IN ADDITION SHE HAS SHAKESPEARE ON VIDEOCASSETTE AUDIOCASSETTE AND COMPACT DISKS ALONG WITH THE ACTORS SHE MOUTHS THE WORDS TO SOLILOQUIES HER TWO DOGS ARE NAMED CLEOPATRA AND PORTIA IN BINDERS SHE SAVES CRITICS' REVIEWS PLAYBILLS AND TICKETS FROM EACH PERFORMANCE SHE HAS SEEN IN A LARGE LEDGER SHE ALSO RECORDS THE DATE OF EACH PLAY SHE HAS SEEN A LIST OF THE CAST AND HER THOUGHTS ON THE PRODUCTION MS MONTANAROACOTT CAN BE TOUGH CRITIC OF THE 1991 FILM VERSION OF HAMLET WITH MEL GIBSON SHE SAYS IT WAS AS IF THEY CHUCKED THE TEXT UP IN THE AIR CHARACTERS WERE SAYING LINES THAT DIDN'T BELONG TO THEM AND ROSENCRANTZ AND GUILDENSTERN WEREN'T EVEN IN IT SHE SAYS AN RSC PRODUCTION OF ANTONY AND CLEOPATRA THIS SUMMER STARRING A 40ISH CLEOPATRA AND A FLABBY ANTONY WAS MISCAST FORTUNATELY FOR THE MONTANAROACOTTS THE BRITISH GOVERNMENT SUBSIDIZES EACH RSC TICKET AN AVERAGE OF 15 AND AS CHARITABLE GIVERS TO THEATER COMPANIES THE COUPLE CAN BUY DISCOUNTED TICKETS FOR MANY PERFORMANCES STILL MS MONTANAROACOTT ESTIMATES SHE SPENDS 4500 A YEAR ON TICKETS THEN THE COUPLE'S ANNUAL TWOWEEK VACATION IN STRATFORDONAVON COSTS AN ADDITIONAL 4500 AND YOU WONDER WHY WE CAN'T AFFORD A SECOND BATHROOM CHIDES HER HUSBAND BUT WITH HIS WIFE'S NEW SECOND JOB AT THE HEALTH CLUB THE BATHROOM WILL GET BUILT SHE HAS ALREADY PICKED OUT THE TILES BLACKONWHITE PAINTINGS OF CHARACTERS FROM SHAKESPEARE'S PLAYS 9311040001 931104 BUSINESS BRIEF SYLVAN FOOD HOLDINGS INC SHUTDOWN PLANNED AT UNIT OVER LABOR CONTRACT DISPUTE SYLVAN FOOD HOLDINGS INC SAID IT WILL PROCEED WITH PLANS TO SHUTDOWN ITS MOONLIGHT MUSHROOMS UNIT AFTER THE UNIT'S UNION WORKERS VOTED 516 TO 264 AGAINST A PROPOSED LABOR CONTRACT SYLVAN IN SARVER PA THE THIRDLARGEST US GROWER AND MARKETER OF FRESH MUSHROOMS HAD ASKED FOR WAGE AND BENEFIT CONCESSIONS FROM ITS SOME 950 MOONLIGHT WORKERS A SPOKESMAN FOR THE UNITED STEELWORKERS WHICH REPRESENTS THE MOONLIGHT WORKERS COULDN'T BE REACHED FOR COMMENT THE USW HAD PREVIOUSLY CALLED THE PROPOSED CONTRACT A NEGATIVE PACKAGE 9311040008 931011 A PEDIATRICIAN'S FEARS BY AMITY SHLAES IF ANY DOCTOR OUGHT TO LOVE THE CLINTONS' HEALTH CARE PLAN IT IS LAURA POPPER A BABY BOOMER WHO VOTED FOR THE PRESIDENT DR POPPER SHARES THE FIRST COUPLE'S 60S NOSTALGIA AND THEIR TASTE FOR SOCIAL ACTIVISM AN URBAN PEDIATRICIAN DR POPPER IS ONE OF THE PRIZED PLAN GATEKEEPERS WHO STAND TO FACE FEW OF THE HURDLES THE ADMINISTRATION WOULD PLACE BEFORE MEDICAL SPECIALISTS BUT SITTING IN A REDPAINTED OFFICE SUITE LINED WITH LAB KITS AND PLASTIC NINJA TURTLES DR POPPER LOOKS CLOSE TO DESPAIR EVERY NIGHT I LIE DOWN IN BED AND AM JUST SO SAD THIS CHANGE IS THE END FOR MY BUSINESS AND MY PROFESSION DR POPPER IS MY OWN CHILDREN'S PEDIATRICIAN BUT WHEN I LOOKED AROUND I FOUND THAT SHE ISN'T THE ONLY FEARFUL DOCTOR ALTHOUGH CHOICE FOR PATIENTS AND PHYSICIANS IS A CORNERSTONE OF THE CLINTON PROPOSAL DOCTORS WORRY THAT THAT CHOICE IS A MIRAGE THAT CONCEALS A FUTURE OF LOWER QUALITY HEALTH CARE TWO WEEKS AGO THE AMERICAN MEDICAL ASSOCIATION SPENT MORE THAN HALF A MILLION DOLLARS ON A MAILING ANNOUNCING THAT GOVERNMENT AND CORPORATE INTRUSION INTO THE RELATIONSHIP BETWEEN THE PHYSICIAN AND PATIENT COULD TRANSFORM DOCTORS FROM ADVOCATES FOR THEIR PATIENTS TO SIMPLE DISPENSERS OF SERVICES THAT SAME WEEK DR POPPER WAS ALREADY RUSHING TO JOIN A LOCAL MANAGED CARE NETWORK THE OXFORD HEALTH PLAN BEFORE A SEPT 30 DEADLINE I STILL HAVE PATIENTS WITH OTHER INSURANCE BUT NOW WITH THE CLINTON PROGRAM I DON'T HAVE A CHOICE ABOUT JOINING IT'S THAT OR FACE THE POSSIBILITY OF BEING LOCKED OUT OF WHERE THE PATIENTS ARE TO UNDERSTAND DR POPPER'S PANIC I SPENT A FEW MORNINGS SURVEYING THE PATIENTS AND EQUIPMENT AT HER MANHATTAN PRACTICE ON A FRIDAY A THREEYEAROLD WITH A BLOODCLOTTING PROBLEM PLAYS QUIETLY WITH HER DOLL AMID MINIATURE DUMPSTERS ON THE GRAYCARPETED WAITING ROOM FLOOR LINDSAY AND HER NANNY ARE WAITING FOR THE RESULTS OF A BLOOD ANALYSIS ONE OF THREE IN A WEEK PERFORMED BY DR POPPER'S ASSISTANT KATHY RIGHT IN HER OFFICE TEN MINUTES LATER DR POPPER KNOWS THAT LINDSAY'S PLATELET COUNT HAS IMPROVED ENOUGH FOR HER TO GO HOME BUT NOT YET REACHED NORMAL LEVELS SHE KNEELS TO GO EYEBALL TO EYEBALL WITH THE CHILD NO JUMPING OFF THE BED RIGHT IT'S GOING TO BE A QUIET WATCHALADDIN TYPE OF WEEKEND THIS SNAPPY OUTCOME MAY NOT BE AVAILABLE LONG THE 10000 MACHINE AND PRINTER THAT PERFORMED THE PLATELET COUNT ARE THE KIND OF LUXURIES MANY MANAGEDCARE PHYSICIANS AREN'T REIMBURSED FOR AND SO CAN'T AFFORD AN OXFORD SPOKESMAN SAYS THAT THE HEALTH PLAN WOULD ALLOW SUCH AN INOFFICE TEST AS AN EMERGENCY BUT MIGHT ASK THAT THE FOLLOWUP TESTS BE SENT TO A LAB AT DR POPPER'S OWN HOSPITAL NEW YORK'S MOUNT SINAI RIGHT NOW SAYS DR POPPER LINDSAY DOESN'T HAVE TO WAIT FOR LAB REPORTS FROM OUTSIDE OF THE OFFICE I DON'T HAVE TO CHARGE HER FOR ALL OF THESE VISITS IN FACT I DON'T I DECIDE UNDER A PLAN I WON'T ANOTHER TOOL OF DR POPPER'S A BOX CALLED A PULSE OXIMETER POSES SIMILAR PROBLEMS THE INSTRUMENT MEASURES THE OXYGEN LEVEL IN ASTHMA AND PNEUMONIA PATIENTS' BLOOD A FIGURE THAT TELLS DOCTORS WHETHER PATIENTS NEED EMERGENCY TREATMENT AT HOSPITALS THE PULSE OXIMETER SPARES A WHEEZY FIVEYEAROLD NAMED MAX AN EXPENSIVE MORNING IN THE EMERGENCY ROOM HE SPENDS IT LYING ON DR POPPER'S FATHER'S OLD BLANKET BESIDE THE MACHINE WHILE SHE PERFORMS A SERIES OF PAINLESS TESTS ON HIS BLOOD BUT THE DEVICE COST HER SOME 2500 USED AND DR POPPER FEARS SHE WON'T BE ABLE TO AFFORD A NEW ONE WITH THE HEAVIER PATIENT BURDEN DOCTORS USUALLY FACE AFTER THEY JOIN MANAGED CARE PLANS THE RESULT SHE'LL HAVE TO SEND FUTURE CASES TO THE EMERGENCY ROOM STREP TESTS A THIRD STAPLE IN THE POPPER WORLD ARE ALSO LIKELY TO FALL UNDER THE REGULATING EYE OF GOVERNMENT AND MANAGED CARE TO CHECK SNEEZING PRESCHOOLERS FOR STREP DR POPPER LIKES TO DO TWO TESTS IN HER OFFICE AN INSTANT ONE FROM A KIT BACKED UP BY A MORE RELIABLE THROAT CULTURE SHE GROWS OVERNIGHT IN HER OWN INCUBATOR WHEN THE INSTANT TESTS ARE POSITIVE SHE PRESCRIBES ANTIBIOTICS RIGHT AWAY OXFORD PHYSICIANS REPORT THEY ARE ALLOWED TO DO ONE TEST IN OFFICE BUT NOT BOTH SO THEY ARE FORCED TO SEND THE TRADITIONAL CULTURE OUT TO A LAB WHICH FREQUENTLY TAKES 24 ADDITIONAL HOURS TO RETURN THE RESULTS DR POPPER IS ANGRY ABOUT THIS IT MEANS AT LEAST A DAY'S EXTRA WAIT BEFORE THE CHILD CAN GO BACK TO DAY CARE OR SCHOOL SO IT MEANS ONE DAY MORE MOM OR DAD HAS TO SKIP WORK TO SIT WITH A SICK KID ASKS DR POPPER IS THAT ECONOMY MUNCHING A VEGGIE SANDWICH IN HER OFFICE DR POPPER ELABORATES ON SUCH INTRUSIONS OXFORD'S PLAN ALLOWS SIX WELLBABY VISITS DURING THE FIRST YEAR OF LIFE SHE HERSELF LIKES TO SEE SUCH CHILDREN NINE TIMES 225 IN ADDED REVENUE FOR DR POPPER AND STAFF BUT ALSO A POTENTIALLY HEALTHIER KID OXFORD REPLIES THAT SIX WELLBABY VISITS IS THE NUMBER RECOMMENDED BY THE AMERICAN ACADEMY OF PEDIATRICS WHOSE GUIDELINES IT FOLLOWS DR POPPER THOUGH SAYS A FEW EXTRA VISITS ENABLE HER TO AVERT CRISES BY SUPPORTING THE FAMILY AN END THE FAMILYORIENTED CLINTONS ALSO SEEK OXFORD MEMBER PEDIATRICIANS REPORT TOO AND OXFORD CONFIRMS THAT THEY RECEIVE 49 PER WELLBABY VISIT FROM THE PLAN OR 26 LESS THAN DR POPPER'S REGULAR 75 RATE WASHING HER HANDS IN AN EXAMINING ROOM DECORATED WITH A PHOTO OF HER YOUNGER SELF BESIDE FOLK STAR MARY TRAVERS AT A 1968 VIETNAM WAR PROTEST DR POPPER REFLECTS ON SUCH BOTTOMLINE ISSUES I WORK AT LEAST 50 TO 90 HOURS A WEEK I MEET MY PATIENTS IN THE EMERGENCY ROOM AT NIGHT I'M ON CALL FOR THEM AT HOME MY FIXED EXPENSES WILL STAY THE SAME BUT I STAND TO EARN 20 TO 30 LESS SHE SAYS DILEMMAS LIKE HERS REFLECT THE UNNECESSARY SIDE OF THE CLINTON PROGRAM PEDIATRIC PRACTICES AREN'T USUALLY ASSOCIATED WITH THE 100000 BILLS GENERALLY GENERATED BY COMATOSE OCTOGENARIANS THEY ARE LOLLIPOPANDIMMUNIZATION SHOPS WHOSE SAVINGS WON'T PROVIDE MUCH TOWARD FINANCING THE RESCUE OF AMERICA'S 37 MILLION UNINSURED AND YET PEDIATRICIANS WILL BE ROPED INTO THE SYSTEM WITH THE REST WE ARE WORRIED ABOUT THE QUALITY OF CARE SAYS LOUIS MONTI A PEDIATRICIAN WHO HEADS THE MOUNT SINAI INDEPENDENT PRACTICE ASSOCIATION AN 800DOCTOR GROUP WITH ADMITTING PRIVILEGES AT MOUNT SINAI AS RATES GO DOWN HE SAYS THE NUMBER OF PATIENTS WHO PHYSICIANS SEE WILL HAVE TO GO UP FRIENDS OF MANAGED CARE WOULD ARGUE THAT THESE DOCTORS' FEARS ARE EXAGGERATED FOR NOW THEY MAY BE OXFORD THE PLAN SHE IS JOINING IS A WILDLY SUCCESSFUL GROUP WITH A REPUTATION SO GOOD IT IS KNOWN AS THE CADILLAC AMONG NETWORKS IT BOASTS A SPECIAL FREEDOM PLAN DESIGNED TO GIVE HMO MEMBERS THE OPTION OF CHOOSING THEIR OWN DOCTOR WHEN THEY WANT TO ITS SPOKESMEN INSIST WITH SOME JUSTIFICATION THAT IT HAS A PARTNERSHIP RELATIONSHIP WITH PHYSICIANS AS OPPOSED TO A PUNITIVE ONE SO FAR SAYS RAMON MURPHY A PEDIATRICIAN WHO HAS BEEN WITH OXFORD SEVERAL YEARS IT HAS BEEN AN HMO THAT HAS WORKED BUT PHYSICIANS FEAR THAT AS SUCH PLANS WIDEN TO INCLUDE PATIENTS MORE EXPENSIVE THAN DR POPPER'S AVERAGE THEY WILL MOVE FROM THEIR CURRENT FEEFORSERVICE OPTION TO CAPITATION UNDER WHICH PHYSICIANS ARE PAID A FLAT FEE PER PATIENT SAYS DR MURPHY MANY OF THE PEDIATRICIANS AT MOUNT SINAI WOULD WITHDRAW FROM ANY ARRANGEMENT WITH HEALTH CARE PLANS THAT GO TO CAPITATION OXFORD FOR ITS PART WROTE IN A FAX TO THIS NEWSPAPER THAT ITS STRATEGY IS IN STARK CONTRAST TO CAPITATION EFFICIENCY EFFORTS SUCH AS CAPITATION MAY WELL CURTAIL THE MEDICAL ESTABLISHMENT'S FABLED PROFITEERING BUT THEY WILL ALSO ERODE ASSETS LIKE INTUITION AND AUTONOMY THAT MAKE AMERICAN HEALTH CARE THE WORLD'S BEST DR POPPER'S OWN DEPARTURE WOULD END THE CAREER OF A PROFESSIONAL SO DEDICATED SHE REAPPLIED TO MEDICAL SCHOOLS AFTER 1960S QUOTAS FOR WOMEN STUDENTS LOCKED HER OUT OF THEIR HALLS ON HER FIRST APPLICATION DR POPPER RECALLS HOW HER OWN CHILDHOOD PEDIATRICIAN DREW HER TOWARD MEDICINE I REMEMBER HIS OFFICE THE MYSTERY OF ALL HIS INSTRUMENTS I WANTED TO BE LIKE HIM TO HAVE THE GOAL OF HELPING PEOPLE BUT MANAGED CARE CUTS AT THE HEART AND SOUL OF THAT BY FOCUSING ON ECONOMICS ALONE AS SHE TALKS HER EYES MOVE ACROSS A WALL DECORATED WITH INFANT SNAPSHOTS AND KIDDIE ARTWORK AMONG THE ITEMS IS A CHILDISHLY PUNCTUATED NOTE FROM A LITTLE GIRL NAMED MEGAN IT READS DEAR DR POPPER YOU ARE THE BEST DR PS I WANT TO BE A DR WHEN I GROW UP MISS SHLAES IS EDITORIAL FEATURES EDITOR OF THE WALL STREET JOURNAL SEE RELATED LETTERS LETTERS TO THE EDITOR PHYSICIAN REFORM THYSELF NOV 4 1993 9310110155 YY93 MM11 9311030170 931103 TECHNOLOGY & HEALTH KENDALL SQUARE HAS NEW SUPERCOMPUTER FIRM REPLIES TO SUITS WALTHAM MASS KENDALL SQUARE RESEARCH CORP UNVEILED ITS SECONDGENERATION SUPERCOMPUTER AND SAID IT HAS MERITORIOUS DEFENSES AGAINST SHAREHOLDER SUITS OVER LAST WEEK'S FORECAST OF WEAKERTHANEXPECTED EARNINGS KENDALL SQUARE SAID ITS NEW KSR2 COMPUTER WHICH USES MASSIVELY PARALLEL PROCESSING PROVIDES ABOUT TWICE THE PERFORMANCE FOR 25 HIGHER PRICES THAN THE KSR1 THE FIRST VERSION HAS BEEN SHIPPED TO THE SUPERCOMPUTING CENTER AT CORNELL UNIVERSITY AND MORE PRODUCTION MACHINES WILL BE AVAILABLE IN 30 DAYS KENDALL SQUARE SAID HENRY BURKHARDT III PRESIDENT AND CHIEF OPERATING OFFICER SAID THAT A VERSION WITH 32 PROCESSORS AND 12 GIGABYTES OF MEMORY WOULD COST ABOUT 25 MILLION AND A 256PROCESSOR SYSTEM FOR SCIENTIFIC USE WITH 48 GIGABYTES OF MEMORY WOULD COST 16 MILLION HE SAID THAT ESTIMATES OF THE COMPUTER'S PERFORMANCE INDICATE IT WILL BE COMPARABLE TO THE RECENTLY UNVEILED CRAY RESEARCH INC T3D MASSIVELY PARALLEL COMPUTER HE SAID TESTS MAY BE COMPLETED WITHIN A FEW WEEKS MR BURKHARDT AND OTHER KENDALL SQUARE OFFICIALS DECLINED TO COMMENT ON THEIR ANNOUNCEMENT LAST WEEK THAT KENDALL'S THIRDQUARTER RESULTS WILL SHOW A NET LOSS RATHER THAN A PREDICTED PROFIT THE COMPUTER MAKER ACKNOWLEDGED THAT SEVERAL PURPORTED CLASSACTION SUITS HAVE BEEN FILED IN US DISTRICT COURT IN BOSTON IT SAID THE SUITS CHARGE KENDALL SQUARE ARTIFICIALLY INFLATED ITS STOCK PRICE THROUGH MISLEADING ANNOUNCEMENTS IN LATE TRADING YESTERDAY ON THE NASDAQ STOCK MARKET KENDALL SQUARE STOCK WAS DOWN 75 CENTS AT 1475 THE STOCK FELL 32 AFTER THE ANNOUNCEMENT OF THE PROJECTED LOSS PEOPLE FAMILIAR WITH THE COMPANY SAY THAT THE LOWERED OUTLOOK REFLECTS A CHANGE TO MORE CONSERVATIVE REVENUERECOGNITION POLICIES IN THE 1992 THIRD QUARTER KENDALL REPORTED A NET LOSS OF 33 MILLION OR 29 CENTS A SHARE ON REVENUE OF 53 MILLION IT POSTED A PROFIT IN THE NEXT THREE QUARTERS MR BURKHARDT SOLD KENDALL SQUARE STOCK VALUED AT 1 MILLION A SMALL PORTION OF HIS HOLDINGS IN AUGUST SHORTLY AFTER PUBLICLY CONFIRMING ANALYSTS' ESTIMATES OF RISING EARNINGS 9311030169 931103 WHO'S NEWS ALLIEDSIGNAL INC ALLIEDSIGNAL INC MORRIS TOWNSHIP NJ JOHN R STAFFORD 56YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AMERICAN HOME PRODUCTS CORP WAS ELECTED A DIRECTOR OF THIS AEROSPACE AUTOMOTIVE PRODUCTS AND CHEMICALS COMPANY INCREASING THE BOARD TO 15 MEMBERS 9311030168 931103 WHO'S NEWS MULTIMEDIA INC MULTIMEDIA INC GREENVILLE SC ROBERT E HAMBY JR CHIEF FINANCIAL OFFICER AND TREASURER WAS NAMED SENIOR VICE PRESIDENT FINANCE AND ADMINISTRATION OF THIS MEDIA COMPANY MR HAMBY 47 YEARS OLD REMAINS CHIEF FINANCIAL OFFICER 9311030166 931103 INTERNATIONAL CITIBANK'S DISPUTE IN KOREA WORRIES FOREIGN CONCERNS BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA A LONGRUNNING WORKERMANAGEMENT DISPUTE AT CITIBANK'S KOREAN BRANCH IS NEARING CONCLUSION AND FOREIGN BUSINESSES HERE WORRY THAT A UNION VICTORY COULD UNLEASH A SURGE OF LABOR DEMANDS ON THEM THE DISPUTE AT CITIBANK OVER FUNDING FOR EMPLOYEE SERVICES WILL BE REVIEWED FRIDAY BY AN ARBITRATION PANEL APPOINTED BY THE LABOR MINISTRY AND A DECISION IS EXPECTED EARLY NEXT WEEK THE CASE IS THE FIRST IN WHICH THE KOREAN GOVERNMENT HAS INTERVENED TO RESOLVE A LABORMANAGEMENT SQUABBLE AT A FOREIGN COMPANY AND IT COINCIDES WITH A WAVE OF WORKER UNREST AT NEARLY A DOZEN FOREIGN BANKS HERE LEADERS OF CITIBANK'S EMPLOYEE UNION ARE DEMANDING THAT MANAGEMENT FOLLOW A 1992 GOVERNMENT RECOMMENDATION THAT COMPANIES ESTABLISH A FUND TO HELP FINANCE SUCH EMPLOYEE SERVICES AS LOWINTEREST HOUSING LOANS THE FUND AS OUTLINED BY THE LABOR MINISTRY WOULD BE FINANCED FROM A PERCENTAGE OF THE COMPANY'S PRETAX EARNINGS AND WOULD BE HELD AS A SEPARATE LEGAL ENTITY MANAGED JOINTLY BY BANK OFFICIALS AND UNION REPRESENTATIVES OFFICIALS OF THE CITICORP UNIT ESTIMATE THAT 370 LOCAL COMPANIES REPRESENTING LESS THAN 5 OF BUSINESSES WITH ORGANIZED LABOR HAVE SET UP SUCH FUNDS MANY FOREIGN COMPANIES HERE ALREADY MAINTAIN THEIR OWN EMPLOYEE FUNDS WHICH THEY SAY ARE MORE COMPREHENSIVE THAN WHAT THE GOVERNMENT RECOMMENDS A CITIBANK OFFICIAL SAID THAT ESTABLISHING A FUND ALONG MINISTRY GUIDELINES WOULD COST CITIBANK THE TRANSFER OF ITS 18 MILLION FUND CURRENTLY BOOKED AS AN ASSET AND 4 MILLION ANNUALLY BASED ON THE BANK'S PRETAX EARNINGS LAST YEAR OF 80 MILLION THE BANK'S MANAGEMENT ALSO IS RELUCTANT TO SET UP A FUND THAT WOULD BE CONTROLLED IN PART BY EMPLOYEES THIS COULD BE USED AS A BACKDOOR WAY FOR THE UNION TO GET INVOLVED IN MANAGEMENT DECISIONS SAID A BANK OFFICIAL CONCERN OVER THE CITIBANK DISPUTE WHICH BEGAN AUG 31 EXTENDS BEYOND THE FOREIGN BANKING COMMUNITY SHOULD THE MINISTRY RULE IN THE UNION'S FAVOR IT COULD ENCOURAGE ORGANIZED LABOR TO MAKE SIMILAR DEMANDS ON FOREIGN BUSINESSES GENERALLY INVOLUNTARY IMPOSITION OF THE EMPLOYEE WELFARE FUND WILL SEND AN EXTREMELY NEGATIVE SIGNAL TO EXISTING FOREIGN INVESTORS AND THOSE FOREIGN COMPANIES CONSIDERING INVESTMENTS OR TRANSFERS OF TECHNOLOGY TO KOREA THE AMERICAN CHAMBER OF COMMERCE IN SOUTH KOREA SAID THE FOREIGN BANKERS GROUP EXPRESSED CONCERN THAT THE ARBITRATION PANEL WOULD INSTINCTIVELY REACH FOR A COMPROMISE SETTLEMENT WHILE IGNORING THE ENORMOUS FIXED EXPENSES THAT ALREADY HANDICAP FOREIGN BANKS HERE AS A RESULT OF LARGE WAGE AND BENEFIT INCREASES WON BY UNIONS CITIBANK FOR EXAMPLE ESTIMATES IT HAS RAISED WAGES AND BENEFITS 505 IN THE PAST FIVE YEARS A SPOKESMAN FOR THE CITIBANK UNION SAID THAT THE REAL FIGURE IS CLOSER TO 100 AND THAT THE ENTRYLEVEL SALARY FOR BANK EMPLOYEES HAS BEEN STAGNANT FOR THREE YEARS HE ALSO SAID THE UNION BELIEVES EMPLOYEES HAVE A RIGHT TO COMANAGE ANY FUND MAINTAINED FOR THEIR BENEFIT WHATEVER THE OUTCOME FOREIGN BANKS AREN'T HAVING AN EASY TIME OF IT IN KOREA THIS YEAR ALONE LABOR GROUPS HAVE FILED COMPLAINTS THE FIRST STEP TOWARD FORMAL STRIKES AGAINST THE KOREAN BRANCHES OF BANK OF MONTREAL BANQUE NATIONALE DE PARIS BANQUE PARIBAS STANDARD CHARTERED BANK AND AMERICAN EXPRESS THE LOCAL ARMS OF FIRST NATIONAL BANK OF BOSTON ABN AMRO BANK AND WESTPAC BANKING CORP OF AUSTRALIA HAVE RECENTLY RESOLVED LABOR DISPUTES WHILE EMPLOYEES OF BANK OF AMERICA HAVE BEEN ON STRIKE SINCE LATE LAST MONTH THE DISPUTES WHICH INVOLVE WAGES EMPLOYEE BENEFITS AND MANY OTHER MATTERS REFLECT THE LATEST STRAINS IN THE UNEASY RELATIONSHIP BETWEEN ORGANIZED LABOR AND MANAGEMENT AT THE 51 FOREIGN BANKS WITH BRANCHES IN KOREA SINCE 1986 MELLON BANK WELLS FARGO BANK AND MORGAN GUARANTY TRUST CO OF NEW YORK AMONG OTHERS HAVE ABANDONED KOREA IN PART BECAUSE OF LABOR PROBLEMS WESTPAC WILL CLOSE ITS KOREAN OPERATION THIS YEAR 9311030165 931103 HEICO SETS RIGHTS PLAN HOLLYWOOD FLA HEICO CORP SAID ITS BOARD ADOPTED A SHAREHOLDER RIGHTS PLAN TERMS OF THE PLAN GIVE SHAREHOLDERS THE RIGHT TO BUY A NEW SERIES OF PREFERRED STOCK IN THE EVENT OF A TAKEOVER ATTEMPT THE MEDICAL IMAGING AND AEROSPACE COMPANY SAID IT ISN'T AWARE OF ANY TAKEOVER MOVES 9311030164 931103 WHO'S NEWS ZONAGEN INC ZONAGEN INC THE WOODLANDS TEXAS LOUIS PLOTH JR 39 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THIS DEVELOPER OF REPRODUCTIVE HEALTH PRODUCTS A NEW POSITION PRIOR TO HIS APPOINTMENT MR PLOTH WAS CHIEF FINANCIAL OFFICER AND VICE PRESIDENT FINANCE AND ADMINISTRATION AT UNISYN TECHNOLOGIES INC A SPINOFF OF SYNBIOTICS CORP 9311030163 931103 WHO'S NEWS BENSON EYECARE CORP BENSON EYECARE CORP NEW YORK RAYMOND S TROUBH WAS ELECTED A DIRECTOR OF THIS RETAIL OPTICAL CONCERN RAISING THE BOARD TO EIGHT MEMBERS MR TROUBH 67 YEARS OLD AN INDEPENDENT FINANCIAL CONSULTANT HAD BEEN A GENERAL PARTNER WITH LAZARD FRERES & CO A NEW YORK INVESTMENT BANKING COMPANY 9311030162 931103 WHO'S NEWS ACME ELECTRIC CORP ACME ELECTRIC CORP EAST AURORA NY ROBERT J MCKENNA 45YEAROLD PRESIDENT WAS NAMED CHIEF EXECUTIVE OFFICER MR MCKENNA WHO WILL REMAIN PRESIDENT SUCCEEDS G WAYNE HAWK 65 WHO WILL REMAIN CHAIRMAN ACME DESIGNS AND MAKES POWERCONVERSION EQUIPMENT FOR ELECTRONIC AND ELECTRICAL SYSTEMS 9311030160 931103 TECHNOLOGY BELLSOUTH'S SIMON MERGES CELLULAR PHONE COMPUTER NEW YORK BELLSOUTH CORP AS EXPECTED INTRODUCED SIMON A NEW IBMDESIGNED CELLULAR PHONE AND COMPUTER THAT WILL TAKE AIM AT THE APPLE NEWTON AND OTHER PERSONAL DIGITAL ASSISTANTS THE PRODUCT IS THE FIRST HANDHELD PDA TO INCORPORATE CELLULAR PHONECALLING WITH SUCH COMPUTER FEATURES AS SCHEDULING AN ADDRESS BOOK WIRELESS FAXING AND ELECTRONIC MAIL IT WAS DESIGNED BY AN INTERNATIONAL BUSINESS MACHINES CORP LAB AND WILL BE SOLD BY BELLSOUTH'S CELLULAR BUSINESS SIMON MARKS THE FIRST TIME THAT IBM HAS ENTERED THE PDA MARKET WHICH WAS GALVANIZED IN AUGUST BY THE INTRODUCTION OF THE NEWTON FROM APPLE COMPUTER INC IBM IS EXPECTED TO UNVEIL A MORE POWERFUL VERSION UNDER THE IBM BRAND NAME IN MID1994 BELLSOUTH THE ATLANTABASED BABY BELL THAT PROVIDES LOCAL PHONE SERVICE TO SOUTHEASTERN STATES SAID IT WILL BEGIN DELIVERING SIMON TO LOCAL MARKETS IN FLORIDA NEXT MONTH THE PRODUCT WITH A PRICE STARTING AT ABOUT 1000 WILL BE AVAILABLE NATIONWIDE AT THE END OF THE FIRSTQUARTER OF NEXT YEAR 9311030159 931103 WHO'S NEWS INTERNATIONAL MUREX TECHNOLOGIES CORP INTERNATIONAL MUREX TECHNOLOGIES CORP NORCROSS GA J DAVID THOLEN CHIEF OPERATING OFFICER AND PRESIDENT WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER OF THIS MEDICAL DIAGNOSTIC PRODUCTS COMPANY AS CEO MR THOLEN 49 YEARS OLD SUCCEEDS C ROBERT CUSICK 47 WHO REMAINS VICE CHAIRMAN MR CUSICK SAID HE'S RESIGNING AS CEO TO FOCUS ON PROJECTS TO BUILD UP THE COMPANY WE'VE DECIDED WE HAVE TO INCREASE MUREX THROUGH DEVELOPMENT OR ACQUISITIONS HE SAID THAT'S AN AWFUL LOT OF WORK 9311030158 931103 SENATE VOTES 946 FOR DIARIES FROM PACKWOOD OREGON REPUBLICAN LOSES BID TO BLOCK SUBPOENA ISSUED BY ETHICS PANEL BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AFTER TWO PAINFUL DAYS OF DELIBERATIONS THE SENATE VOTED 946 TO COMPEL SEN BOB PACKWOOD ACCUSED BY 26 WOMEN OF SEXUAL HARASSMENT TO TURN OVER HIS PRIVATE DIARIES TO THE SENATE ETHICS COMMITTEE THE OFTEN TESTY DEBATE EXPOSED NEW POTENTIAL ALLEGATIONS AGAINST THE OREGON REPUBLICAN WHICH EXPLAINED WHY THE ETHICS COMMITTEE ISSUED ITS SUBPOENA SEEKING THE DIARIES IN THE FIRST PLACE SEN PACKWOOD HIMSELF DISCLOSED THAT THE ETHICS COMMITTEE'S INTEREST IN THE DIARIES WAS SPARKED AFTER THE COMMITTEE'S COUNSEL REVIEWED A 1990 ENTRY WHICH REFERRED TO POSSIBLE JOB OFFERS BY LOBBYISTS TO SEN PACKWOOD'S FORMER WIFE GEORGIE AND LINKAGE WITH OFFICIAL DUTIES BUT DURING YESTERDAY'S 10HOUR DEBATE SEN PACKWOOD ALONG WITH A CADRE OF FELLOW REPUBLICANS CITED ISSUES OF PRIVACY AND RELEVANCE IN BATTLING TO LIMIT THE ETHICS PANEL'S INVESTIGATION TO MATERIAL RELATED TO THE EARLIER CHARGES OF SEXUAL HARASSMENT AND THE POSSIBLE NEW ALLEGATIONS THE COMMITTEE HAD ALREADY REVIEWED 5000 PAGES COVERING 20 YEARS BEFORE STOPPING AT JAN 1 1989 WE ARE WILLING TO PROVIDE EVERY SCINTILLA OF INFORMATION THAT IS RELEVANT TO THOSE CHARGES SEN PACKWOOD ASSERTED WHAT WE OBJECT TO IS GIVING THE ENTIRE DIARY TO THE COMMITTEE AND LETTING THEM GO THROUGH IT TO SEE IF THEY CAN FIND OTHER CHARGES SEN PACKWOOD WHO HAS SO FAR RAISED 279000 FOR HIS DEFENSE FROM CONTRIBUTORS SAID HE WILL FIGHT THE SUBPOENA IN COURT BUT THE BIPARTISAN SIXMEMBER COMMITTEE UNANIMOUSLY ASSERTED ITS RIGHT TO THE DIARY EXCLUDING ENTRIES RELATING TO FAMILY OR MEDICAL MATTERS OR COVERED BY ATTORNEYCLIENT PRIVILEGE COMMITTEE MEMBERS NOTED THAT THEY WOULD NEVER HAVE KNOWN OF THE EXISTENCE OF THE 8000PAGE DIARY OFTEN DICTATED AT HIS SENATE OFFICE EXCEPT THAT SEN PACKWOOD REFERRED TO IT DURING A DEPOSITION TO BOLSTER HIS ACCOUNT OF EVENTS THERE WAS NOTHING SINISTER ABOUT THIS THE STAFF WAS MERELY DOING WHAT IT IS OBLIGATED TO DO SAID KENTUCKY SEN MITCH MCCONNELL THE RANKING REPUBLICAN ON THE ETHICS PANEL BEHIND THE SUBPOENA DEBATE WERE THE SENSITIVE QUESTIONS OF SEXUAL HARASSMENT ON CAPITOL HILL AND WHETHER THE SENATE IS ABLE TO POLICE ITSELF TO PROVE HOW SERIOUSLY IT TOOK THE MATTER THE SENATE LEADERSHIP INVOKED RARELY USED RULES TO FORCE ITS MEMBERS TO THE FLOOR FOR THE DEBATE DURING THE DEBATE SEN BARBARA MIKULSKI D MD THE ONLY WOMAN ON THE ETHICS COMMITTEE SAID SHE EXPECTS PUBLIC HEARINGS ON THE ALLEGATIONS BUT DESPITE THAT ADMONITION AS THE DEBATE DRAGGED ON ALL DAY MONDAY AND YESTERDAY OFTEN ONLY A DOZEN OR SO SENATORS WERE ON THE FLOOR AND WHILE SEN PACKWOOD PACED AND INTERJECTED OTHER MEMBERS WERE OBVIOUSLY LESS THAN RIVETED BY THE DEBATE WHICH TURNED MORE AND MORE ON ARCANE LEGAL ISSUES BEFORE BUILDING TO MOREDRAMATIC ROLLCALL VOTES LAST NIGHT AT VARIOUS POINTS SEN DIANNE FEINSTEIN D CALIF THUMBED DISCREETLY THROUGH A CHRISTMAS WREATH CATALOG CHECKING OFF PAGES SEN TOM HARKIN D IOWA AUTOGRAPHED A PILE OF PHOTOS SEN ROBERT BENNETT R UTAH WORKED ON A CROSSWORD PUZZLE AT A REAR DESK SEN PACKWOOD HAS DEMONSTRATED A WILLINGNESS TO TAKE ON HIS COLLEAGUES SINCE THE SEXUALHARASSMENT ALLEGATIONS AROSE IN A WASHINGTON POST ARTICLE JUST THREE WEEKS AFTER LAST YEAR'S ELECTION SEN PACKWOOD DENIED THE CHARGES TO THE POST UNTIL AFTER THE ELECTION CALLING INTO CHARACTER THE WOMEN WHO MADE THEM POST EDITORS HAVE WRITTEN ALTHOUGH HE APOLOGIZED FOR HIS ACTIONS TOWARD HIS FEMALE ACCUSERS SEN PACKWOOD HAS FIERCELY FOUGHT THE CHARGES AND HAS PAINTED HIMSELF AS THE VICTIM OF A VIGILANTE COMMITTEE RUN AMOK HE ASSERTED ON THE SENATE FLOOR THAT VICTOR BAIRD COUNSEL TO THE ETHICS COMMITTEE PEEKED UNDER TAPE THAT COVERED PRIVATE MATERIAL IN HIS DIARY IN VIOLATION OF THE RULES OF THE COMMITTEE HE LATER APOLOGIZED ON THE SENATE FLOOR AND SAID HE WAS MISTAKEN AND ON OCT 22 SEN PACKWOOD'S ATTORNEY PROCLAIMED THAT THE COMMITTEE WAS PURSUING DIARY ENTRIES THAT EXPOSED THE ROMANTIC DALLIANCES OF OTHER MEMBERS OF CONGRESS CERTAINLY MAKING A SUBPOENA LESS ATTRACTIVE BUT SEN PACKWOOD LATER SAID THAT NO SITTING SENATOR WAS MENTIONED IN THIS CONTEXT BEFORE APPROVING THE SUPBOENA REQUEST THE SENATE REJECTED 7722 AN AMENDMENT OFFERED BY SEN ALAN SIMPSON R WYO WHICH WOULD HAVE RESTRICTED THE ETHICS COMMITTEE TO RECEIVING ONLY MATERIAL FROM THE DIARY DEEMED RELEVANT COMMITTEE MEMBERS OPPOSED THE ALTERNATIVE AS TOO VAGUE 9311030157 931103 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB WHEN IT COMES TO PASSING THE NORTH AMERICAN FREE TRADE AGREEMENT BILL CLINTON OBVIOUSLY IS ON THE SPOT BUT WHILE IT'S LESS OBVIOUS REPUBLICANS AND THEIR NEWLY ANOINTED LEADER IN THE HOUSE NEWT GINGRICH ARE ON THE SPOT AS WELL REPUBLICANS CREATED NAFTA THEY HAVE THE DEEPEST PHILOSOPHICAL BOND WITH IT AND THEY HAVE THE MOST TO LOSE IF ROSS PEROT CHAMPIONS A SUCCESSFUL CAMPAIGN TO DEFEAT IT SO HERE'S THE INTRIGUING QUESTION IS NEWT GINGRICH THE MOST PARTISAN HOUSE GOP LEADER IN MEMORY WILLING IN HIS FIRST BIG TEST TO SAVE DEMOCRAT BILL CLINTON FROM IGNOMINIOUS DEFEAT ABSOLUTELY SAYS MR GINGRICH WELL ALMOST ABSOLUTELY I'M GOING TO TRY TO GET EVERY SINGLE REPUBLICAN VOTE I CAN GET MR GINGRICH PLEDGES WHITE HOUSE AIDES FIGURE THEY NEED 120 OF THE HOUSE'S 176 REPUBLICANS TO VOTE FOR NAFTA IN ORDER TO PASS THE DEAL MR GINGRICH SAYS HE'S ALREADY GOT MORE THAN 100 OF THOSE BUT THERE'S A CATCH I WON'T ASK ANY MARGINAL REPUBLICAN OR FRESHMAN REPUBLICAN TO RISK HIS SEAT BY VOTING FOR NAFTA MR GINGRICH SAYS THUS HE ARGUES THAT HE NEEDS HELP FROM PRESIDENT CLINTON ON TWO FRONTS TO ROUND UP THE FINAL REPUBLICAN VOTES FIRST HE SAYS THE WHITE HOUSE NEEDS TO GET CLOSE TO 100 OF ITS OWN DEMOCRATS TO VOTE FOR NAFTA THAT WILL SHOW REPUBLICANS THAT THEY WON'T BE GOING OUT ON THE FREETRADE LIMB FOR A LOSING CAUSE WHEN THE VOTE TAKES PLACE TWO WEEKS FROM NOW MR GINGRICH PREDICTS THERE WILL BE A KNOT OF REPUBLICANS LINGERING IN THE BACK OF THE HOUSE CHAMBER WAITING TO SEE WHETHER DEMOCRATS ARE COMING THROUGH BEFORE CASTING THEIR OWN VOTES IF DEMOCRATS AREN'T DELIVERING UNEASY REPUBLICANS COULD BEGIN PEELING AWAY HE'S FACED WITH WINNING NARROWLY OR LOSING BIG MR GINGRICH SAYS SECONDLY MR GINGRICH SAYS THE WHITE HOUSE NEEDS TO MAKE A BREAKTHROUGH AMONG HOUSE DEMOCRATS IN THE BIG INDUSTRIAL STATES OF OHIO AND MICHIGAN THERE ARE PERHAPS NINE WAVERING REPUBLICANS FROM THOSE STATES WILLING TO MAKE THE NAFTA JUMP IF THEY SEE A COUPLE OF DEMOCRATS JUMPING WITH THEM OTHERWISE THOSE RUST BELT REPUBLICANS FEAR UNIONS POURING IN MONEY TO DEFEAT THEM NEXT YEAR IN PUNISHMENT FOR A PRONAFTA VOTE IN THE BROADEST SENSE THE QUESTION FACING ALL REPUBLICANS IS WHY THEY SHOULD VOTE FOR NAFTA AT THIS POINT AS ONE GOP LEADER PUT IT IN A RECENT MEETING WHAT THE HELL DO WE GET OUT OF THIS EXCEPT THE GOOD GOVERNMENT AWARD THE ANSWER IS PLENTY FIRST REPUBLICANS CAN MAKE A STATEMENT ABOUT THE INTELLECTUAL FOUNDATION OF THEIR PARTY BY STICKING WITH NAFTA AN INCREASINGLY OPEN WORLD TRADING SYSTEM IS CENTRAL TO THE REPUBLICAN VISION OF AMERICA'S ECONOMIC FUTURE BUGGING OUT ON GEORGE BUSH'S NAFTA AT THE LAST MINUTE WOULD ONLY LEAVE VOTERS WITH A MUDDLED PICTURE OF WHAT REPUBLICANS STAND FOR IN THE POSTCOLD WAR WORLD NAFTA IS A BATTLE FOR THE SOUL OF THE REPUBLICAN PARTY AS MUCH AS THE DEMOCRATIC PARTY THE CLEAREST SIGN OF THAT IS THAT JACK KEMP A PRONAFTA REPUBLICAN LIKELY TO RUN FOR PRESIDENT IN 1996 HAS JUST AGREED TO APPEAR ON THE LARRY KING SHOW DAYS BEFORE THE HOUSE VOTE TO DEBATE PATRICK BUCHANAN AN ANTINAFTA REPUBLICAN ALSO LIKELY TO RUN FOR PRESIDENT AGAIN THIS IS A BATTLE IN BOTH PARTIES THAT WILL DEFINE THE NEW FROM THE OLD THE '90S AND THE NEXT CENTURY FROM THE 1930S MR KEMP ARGUES BEYOND THAT ROSS PEROT ALONE OUGHT TO GIVE REPUBLICANS REASON ENOUGH TO BACK NAFTA HAVING BECOME THE SYMBOL OF THE ANTINAFTA MOVEMENT MR PEROT WOULD EMERGE AS THE ONLY CLEAR WINNER IF IT IS DEFEATED AND WHEN 1996 ROLLS AROUND A PUMPEDUP ROSS PEROT STANDS TO STEAL A LOT MORE REPUBLICAN VOTES THAN DEMOCRATIC ONES IN A PRESIDENTIAL CAMPAIGN IF HIGHMINDED ARGUMENTS AREN'T ENOUGH SOME REPUBLICANS APPARENTLY ARE CALCULATING THAT THEY CAN GET SOME GOODIES OUT OF THE WHITE HOUSE IN RETURN FOR A PRONAFTA VOTE REPUBLICANS INCREASINGLY TALK OF CUTTING THE SAME KINDS OF DEALS A LITTLE HELP FOR THE HOME DISTRICT A BOOST ON A PET LEGISLATIVE PROJECT THAT DEMOCRATS HAVE BEEN BROKERING CONGRESSIONAL AIDES SAY FOR HIS PART MR GINGRICH WAS A BURR IN THE WHITE HOUSE SIDE A COUPLE OF WEEKS AGO WHEN HE FOUGHT AGAINST A MODEST TAX PACKAGE THE ADMINISTRATION PROPOSED TO COVER THE COSTS OF IMPLEMENTING NAFTA BUT THESE DAYS WHITE HOUSE AIDES SAY THEY'RE GENERALLY HAPPY WITH HIS HELP MR GINGRICH HAS EVEN OFFERED ONE STARTLING SUGGESTION TO THE WHITE HOUSE ENLIST TALK SHOW BOMBTHROWER RUSH LIMBAUGH IN THE SALES EFFORT MR LIMBAUGH IS A NAFTA SUPPORTER AND HE HAS A MICROPHONE BIG ENOUGH TO TURN THE TIDE MR GINGRICH ARGUES RUSH LIMBAUGH GETTING BILL CLINTON OVER THE HUMP IN THE ODD DEBATE OVER NAFTA A CASE OF STRANGE BEDFELLOWS IF EVER THERE WAS ONE IT SOMEHOW WOULD BE AN APPROPRIATE ENDING 9311030156 931103 WHO'S NEWS DECORATOR INDUSTRIES INC DECORATOR INDUSTRIES INC PEMBROKE PINES FLA WILLIAM BASSETT 56YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN OF THIS MAKER OF DRAPERIES AND OTHER ACCESSORIES EFFECTIVE JAN 3 MR BASSETT SUCCEEDS EARL RAPPAPORT 75 WHO WILL RETIRE MR RAPPAPORT WILL REMAIN A DIRECTOR AND CONSULTANT TO THE COMPANY 9311030155 931103 LASERTECHNICS UNIT BUYS CONCERN ALBUQUERQUE NM LASERTECHNICS INC SAID ITS NEWLY FORMED SUBSIDIARY SANDIA IMAGING SYSTEMS COMPLETED THE ANNOUNCED ACQUISITION OF TEXASBASED MEDIA IMAGING TECHNOLOGIES CORP A MANUFACTURER OF IMAGING SOFTWARE AND PHOTOGRAPHIC IMAGE TRANSMITTERS TERMS WEREN'T DISCLOSED 9311030154 931103 WHO'S NEWS RX MEDICAL SERVICES CORP RX MEDICAL SERVICES CORP FORT LAUDERDALE FLA MARK HALPERT 45 YEARS OLD MANAGING DIRECTOR INTERNATIONAL AT BOC HEALTH CARE WAS NAMED CHIEF OPERATING OFFICER A NEW POST AT THIS MANAGER OF CLINICAL LABS AND IMAGING CENTERS WILLIAM R PREECE 35 SENIOR AUDIT MANAGER AT GRANT THORNTON WAS NAMED CHIEF FINANCIAL OFFICER SUCCEEDING LEONARD MANISCALCO 34 WHO RESIGNED EARLIER THIS YEAR JOSEPH C WASCH VICE PRESIDENT AND CORPORATE COUNSEL AT HUBBARD INC A UNIT OF MERRILL LYNCH & CO WAS NAMED VICE PRESIDENT SECRETARY AND GENERAL COUNSEL MR WASCH 49 SUCCEEDS DANIEL KINSEY 45 WHO LEFT TO ENTER PRIVATE PRACTICE 9311030153 931103 BOMBAY CO SALES SURGE FORT WORTH TEXAS BOMBAY CO SAID SALES FOR THE FOURWEEK PERIOD ENDED SUNDAY INCREASED 52 TO 217 MILLION FROM 142 MILLION A YEAR EARLIER SAMESTORE SALES INCREASED 21 FOR THE LATEST 17 WEEKS SALES CLIMBED 43 TO 803 MILLION FROM 561 MILLION SAMESTORE SALES ROSE 22 9311030152 931103 INTERNATIONAL SWISS CONSUMER PRICE INDEX BERN SWITZERLAND SWITZERLAND'S OCTOBER CONSUMER PRICE INDEX ROSE 01 FROM SEPTEMBER AND INCREASED 34 FROM A YEAR EARLIER THE RISE IN THE OCTOBER YEARTOYEAR RATE WAS THE SAME AS THE PACE IN SEPTEMBER WHEN THE MONTHTOMONTH RATE DROPPED 01 9311030151 931103 EA ENGINEERING GETS US JOB BALTIMORE EA ENGINEERING SCIENCE & TECHNOLOGY INC SAID IT AGREED WITH THE DEPARTMENT OF ENERGY TO PROVIDE SUPPORT SERVICES FOR A POTENTIAL MAXIMUM VALUE OF MORE THAN 105 MILLION THE COMPANY SAID IT WILL PROVIDE TECHNICAL AND ANALYTICAL SUPPORT SERVICES TO THE OFFICE OF TRANSPORTATION TECHNOLOGIES IN WASHINGTON 9311030150 931103 ASK OPENS A JAPANESE UNIT MOUNTAIN VIEW CALIF ASK GROUP INC SAID IT OPENED A JAPANESE SUBSIDIARY ASK GROUP JAPAN KK IN TOKYO THE SOFTWARE CONCERN PREVIOUSLY DID BUSINESS IN JAPAN EXCLUSIVELY THROUGH A JAPANESE DISTRIBUTOR 9311030149 931103 HEALTHSOUTH REHABILITATION PACT BIRMINGHAM ALA HEALTHSOUTH REHABILITATION CORP SAID IT ACQUIRED SUNNYBROOK PHYSICAL THERAPY & REHABILITATION CENTER IN POTTSTOWN PA TERMS WEREN'T DISCLOSED THE COMPANY SAID THE CENTER HAS BEEN RENAMED THE HEALTHSOUTH REHABILITATION CENTER OF POTTSTOWN 9311030148 931103 FIRST COMMERCIAL BUYS BANKS LITTLE ROCK ARK FIRST COMMERCIAL CORP COMPLETED THE ACQUISITION OF TEXAS COMMERCE BANKLONGVIEW AND STONE FORT NATIONAL BANK OF NACOGDOCHES FROM TEXAS COMMERCE BANCSHARES INC FIRST COMMERCIAL SAID IN JUNE THAT IT WOULD PAY 278 MILLION FOR THE TWO TEXAS BANKS FIRST COMMERCIAL SAID THAT AFTER THE ACQUISITION TEXAS COMMERCE BANKLONGVIEW WILL BE KNOWN AS LONGVIEW NATIONAL BANK STONE FORT NATIONAL BANK'S NAME WILL NOT CHANGE 9311030147 931103 AMBER'S STORES SALES RISE 35 DALLAS AMBER'S STORES INC REPORTED OCTOBER SALES ROSE 35 TO 63 MILLION FROM 47 MILLION IN THE YEAREARLIER MONTH SALES AT STORES OPEN MORE THAN A YEAR DECLINED 16 FOR THE NINE MONTHS ENDED OCT 31 SALES ROSE 55 TO 374 MILLION FROM 241 MILLION SAMESTORE SALES DECLINED 5 9311030146 931103 PLATINUM SOFTWARE CORP IRVINE CALIF PLATINUM SOFTWARE CORP ACQUIRED LOTZOF & ASSOCIATES A CLOSELY HELD SYSTEMS INTEGRATOR AND SOFTWARE DEVELOPER BASED IN CHICAGO TERMS OF THE ACQUISITION WERE NOT DISCLOSED PLATINUM SAID LOTZOF & ASSOCIATES IS CURRENTLY DEVELOPING AN APPLICATION DESIGNED TO BE USED WITH PLATINUM'S SEQUELTO PLATINUM PRODUCT LINE 9311030145 931103 RIMAGE CORP ACQUIRES DATAPATH MINNEAPOLIS RIMAGE CORP SAID IT ACQUIRED DATAPATH TECHNOLOGIES INC BASED IN FREMONT CALIF A RIMAGE SPOKESMAN SAID THE COMPANY TOOK OVER OPERATIONS OF DATAPATH THROUGH A BANKRUPTCY COURT PROCEEDING LAST THURSDAY DATAPATH FILED FOR BANKRUPTCY PROTECTION IN SEPTEMBER THE COMPANY SAID IT WILL PAY 5 ROYALTIES ON ALL DATAPATH SALES DATAPATH SELLS DISKETTE DUPLICATION EQUIPMENT AND HAD 1992 REVENUE OF 17 MILLION 9311030144 931103 WOLOHAN LUMBER'S SALES RISE SAGINAW MICH WOLOHAN LUMBER CO SAID IT HAD OCTOBER SALES OF 385 MILLION UP 204 FROM 32 MILLION IN OCTOBER 1992 SAMESTORE SALES OR SALES AT STORES OPEN FOR AT LEAST A YEAR INCREASED 178 THE LUMBER COMPANY SAID YEARTODATE SALES THROUGH OCTOBER WERE UP 69 TO 3172 MILLION FROM 2968 MILLION IN 1992 SAMESTORE SALES INCREASED 46 IN THE SAME PERIOD 9311030143 931103 INTERNATIONAL CHINA'S HINTERLAND SEEKS COAST'S PROGRESS ETHNIC AND ENVIRONMENTAL ISSUES SLOW THE ADVANCE BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL LANZHOU CHINA CONSTRUCTION CRANES VIE WITH SMOKESTACKS FOR THE HORIZON IN THIS GRITTY PROVINCIAL CAPITAL OF NORTHWEST CHINA BUT IN THE SHADOWS OF PROGRESS PROBLEMS LURK RESIDENTS HAVE RIOTED OVER TOXICWASTE DUMPING MUSLIMS HAVE PROTESTED AGAINST CULTURAL INSENSITIVITY WATER IS SCARCE JUST BEYOND THE CITY LIMITS THE OPENDOOR POLICIES THAT HAVE SPECTACULARLY TRANSFORMED CHINA'S COASTAL REGIONS ARE BRINGING CHANGE TO THE COUNTRY'S VAST LANDLOCKED NORTHWEST TOO BUT HERE FAR FROM THE ECONOMIC BOOM ALONG THE COAST THE CHANGES ARE COMING ONLY GRADUALLY AND WITH COMPLICATIONS AN UNBALANCED SITUATION REMAINS IN MUCH OF CHINA SAYS CHENG BISHENG WHO HEADS A POVERTYRELIEF EFFORT IN GANSU PROVINCE WE STILL FACE VERY MUCH HARD WORK AT A MEETING IN SEPTEMBER IN URUMQI THE CAPITAL OF THE XINJIANG REGION OFFICIALS FRETTED THAT THE RUGGED OFTEN DESERT NORTHWEST WHICH COMPRISES HALF THE COUNTRY'S TERRITORY BUT LESS THAN A TENTH OF ITS 12 BILLION PEOPLE RISKS BEING LEFT WAY BEHIND BY THE RAPID DEVELOPMENT OF THE SOUTH THEY PLEDGED TO SPEND MORE ON INFRASTRUCTURE ESPECIALLY ROAD AND RAIL LINKS BUT SUCH MEASURES ARE LONGTERM GOALS IN AN AREA WHERE POVERTY RATES ARE MARKEDLY HIGHER AND DEVELOPMENT CONSIDERABLY LESS THAN IN THE COASTAL REGIONS PRIVATELY OFFICIALS WORRY ABOUT A RISING TIDE OF BITTERNESS IN AN AREA WHERE INCOMES AVERAGE ABOUT 100 A YEAR COMPARED WITH THE 1000 OR MORE THAT WORKERS IN COASTAL AREAS CAN EASILY RAKE IN EVEN IN GANSU THOUGH WORKERS IN THE CAPITAL OF LANZHOU EARN INCOMES EQUIVALENT TO THOSE IN MOST MAJOR CITIES ONETHIRD OF THE PROVINCE'S 22 MILLION RESIDENTS LIVE IN POVERTY COMPOUNDING THE PROBLEM OF ECONOMIC UNEVENNESS IS THE ETHNIC STRIFE THAT SOME SAY IS SIMMERING UNLIKE THE MORE HOMOGENEOUS SOUTH THE NORTHWEST HAS SUBSTANTIAL RESTIVE MINORITY POPULATIONS ESPECIALLY MUSLIMS AND TIBETAN BUDDHISTS WITH THE FADING OF HARDLINE ANTIRELIGIOUS COMMUNIST GOVERNMENT AND THE EMERGENCE OF A MORE OPEN ECONOMICALLY FOCUSED SOCIETY MINORITIES WHO LONG WERE FORCIBLY INTEGRATED INTO CHINA'S MAINSTREAM HAVE STARTED DEMANDING GREATER RESPECT FOR THEIR SEPARATE TRADITIONS OFFICIALS SAY SUCH GROUPS GET RESPECT WE ALWAYS PAY MUCH ATTENTION TO MINORITIES AND FREE BELIEF IN RELIGION SAYS CUI ZHENGHUA A GANSU VICE GOVERNOR BOTH TIBETANS AND HUI PEOPLE AN ETHNIC MUSLIM GROUP ARE REPRESENTED IN THE GOVERNMENT HE SAYS YET MUSLIM GROUPS HAVE LAUNCHED PROTESTS ABOUT PERCEIVED CULTURAL OPPRESSION IN RECENT MONTHS A BOOK PUBLISHED IN TAIWAN BUT DISTRIBUTED IN CHINA STIRRED UPRISINGS BECAUSE IT DEPICTS MUSLIMS PRAYING IN THE PRESENCE OF A PIG ON OCT 7 ACCORDING TO REPORTS REACHING BEIJING A DEMONSTRATION BY THOUSANDS OF MUSLIMS WAS PUT DOWN BY SOLDIERS MUSLIM GROUPS ARE THOUGHT TO BE BEHIND A BOMB ATTACK IN JULY ON A HOTEL IN KASHGAR THE CAPITAL OF XINJIANG ILYAS SHEN XIAXI PRESIDENT OF THE CHINESE ISLAMIC ASSOCIATION BLAMES SMALL GROUPS OF TROUBLEMAKERS FOR THE DISTURBANCES DEMONSTRATIONS BY TIBETANS OPPOSED TO CHINESE RULE AND ENVIRONMENTAL CONTAMINATION ALSO HAVE BEEN OCCURRING NOR ARE ETHNIC GROUPS ALONE IN MAKING DISTURBANCES IN LANZHOU ON AUG 14 WORKERS FROM ONE CHEMICAL FACTORY ASSAULTED AND THEN OCCUPIED ANOTHER CHEMICAL FACTORY BECAUSE SULFURICACID WASTE WAS POLLUTING NEARBY WATER SUPPLIES AND CAUSING A FOUL ODOR RIOT POLICE WERE CALLED IN AND AT LEAST TWO PEOPLE REPORTEDLY WERE KILLED GANSU'S GOVERNOR YAN HAIWANG WAS FORCED TO RESIGN OVER THE INCIDENT IN MANY WAYS THE TRIBULATIONS OF GANSU CONSIDERED A NORTHWESTERN PROVINCE THOUGH IT'S GEOGRAPHICALLY AT CHINA'S HEART TYPIFY MANY OF THE NORTHWEST'S CHALLENGES AND SHOWS SOMETHING OF THE GOVERNMENT'S APPROACH TO SOLVING THEM MOST SIGNIFICANT IS ITS EFFORT TO DEVELOP ITS URBAN AREAS FIRST IN THE HOPES THAT ECONOMIC BENEFIT WILL RADIATE OUTWARD AS CHINA'S COASTAL AREAS BECOME TOO CROWDED WITH FOREIGN INVESTORS MONEY IS FLOWING INLAND FOR INSTANCE THE LANZHOU YELLOW RIVER GROUP A BREWERY HAS EIGHT JOINT VENTURES WITH FOREIGN ENTERPRISES ANOTHER COMPANY MAKES PENTAX CAMERAS UNDER LICENSE FROM JAPAN'S ASAHI OPTICAL CO BUT THE MONEY COMES IN SLOWLY AND TENDS TO GO TO AREAS THAT ALREADY ARE RELATIVELY DEVELOPED WANG XIAOCHUN THE IMPORT DIVISION CHIEF AT GANSU'S FOREIGN TRADE AND ECONOMIC COOPERATION DEPARTMENT SAYS 622 FOREIGNBACKED BUSINESSES WITH CAPITAL COMMITMENTS OF 303 MILLION REGISTERED IN GANSU IN THE FIRST EIGHT MONTHS OF THIS YEAR THAT'S A SHARP INCREASE FROM THE 39 FOREIGNBACKED VENTURES WITH CAPITAL COMMITMENTS OF 39 MILLION IN GANSU IN 1991 BUT IN CONTRAST TO SHANGHAI OR GUANGDONG PROVINCE ON THE COAST THE NUMBERS ARE MINUSCULE LESS THAN A GOOD MONTH IN THOSE PLACES WE DON'T HAVE ALL THE ADVANTAGES THE COAST HAS MR WANG SAYS EXPLAINING WHY FOREIGNERS DON'T FLOCK TO GANSU PEOPLE STILL THINK IN THE OLD WAYS AND WHAT INVESTMENT TRICKLES IN RARELY GETS BEYOND THE CITY LIKEWISE WITH IRRIGATION WHICH IS CRUCIAL TO LANZHOU'S NEW PROSPECTS TREES NOW DOT THE STEEP HILLS SURROUNDING THE CAPITAL ONCE THE CHINESE TRAILHEAD OF THE ANCIENT SILK ROAD TO CENTRAL ASIA THAT WASN'T ALWAYS SO TWO DECADES AGO LANZHOU WAS AN INDUSTRIAL OASIS ASTRIDE THE SOUTH BANK OF THE YELLOW RIVER SURROUNDED BY VACANT SCRUBCOVERED HILLS TODAY LARGESCALE IRRIGATION AND ENVIRONMENTALDEVELOPMENT PROJECTS HAVE TRANSFORMED THE WEATHERWORN LANDSCAPE ALONG THE YELLOW RIVER NEAR HERE ARE PUMPING STATIONS THAT LIFT HUNDREDS OF MILLIONS OF GALLONS OF WATER INTO A 140MILELONG BRICK AND MORTAR AQUADUCT ON THE HIGH DESERT PLATEAU THE WATER THEN FLOWS INTO FLAT AREAS WHICH NOW ARE CULTIVATED FOR CORN FRUIT AND WHEAT IN ITS LATEST PROJECT ALONE THE GOVERNMENT EXPECTS TO RELOCATE ALMOST A QUARTER OF A MILLION PEOPLE INTO NEWLY IRRIGATED AREAS BEFORE THIS PROJECT SAYS LI HENGXIN DEPUTY GENERAL MANAGER OF THE JINGTAICHUAN POWER IRRIGATION PROJECT THIS AREA WAS DESERT FULL OF SAND NOW IT'S ARABLE LAND WITH THE HELP OF A RECENT 180 MILLION WORLD BANK LOAN GANSU HOPES TO EXTEND THE BENEFITS OF IRRIGATION FURTHER BEYOND LANZHOU AT THE END OF SEPTEMBER FORESTRY MINISTER XU YOUFANG ANNOUNCED PLANS TO RECOVER 55 MILLION HECTARES OF DESERT LANDS IN THE NEXT SEVEN YEARS SIMPLY THROUGH PLANTING VEGETATION THAT WILL HELP WE CAN'T COMPARE WITH THE COASTAL AREAS OF CHINA THE ENERGETIC MAYOR OF LANZHOU KE MAOSHENG SAYS BUT IN TIME LIKE IN AMERICA IN THE LAST CENTURY WE COULD BE THE CHICAGO OF CHINA SERVING THE WHOLE INLAND PART OF THE COUNTRY 9311030142 931103 HOLLINGER UNIT PLANS ACQUISITION MONTREAL HOLLINGER INC'S GROUPE UNIMEDIA INC UNIT SAID IT HAS ENTERED AN AGREEMENT IN PRINCIPLE TO PURCHASE IMPRIMERIE CANADA INC TERMS WEREN'T DISCLOSED UNIMEDIA SAID THE TRANSACTION WHICH IS SUBJECT TO CERTAIN UNDISCLOSED CONDITIONS IS SET TO CLOSE DEC 1 IMPRIMERIE CANADA VANIER QUEBEC IS INVOLVED IN THE PRINTING OF MAGAZINES ANNUAL REPORTS BROCHURES AND CALENDARS AND EMPLOYS 70 PEOPLE UNIMEDIA SAID THE COMPANY WOULD ASSIST IN THE PRINTING OF THE NEWSPAPER LE SOLEIL 9311030141 931103 CHAPARRAL RESOURCES' GAS WELL DENVER CHAPARRAL RESOURCES INC SAID IT COMPLETED A NATURALGAS DISCOVERY WELL IN RIO BLANCO COUNTY COLORADO THE WELL NO 21 SDC FLOWED AT A RATE OF 25 MILLION CUBIC FEET OF GAS A DAY IT WAS DRILLED TO A DEPTH OF 3558 TO 3682 FEET THE COMPANY SAID CHAPARRAL THE OPERATOR HAS A 15 WORKING INTEREST IN THE WELL GREAT NORTHERN GAS CO OWNS 55 AND THREE CLOSELYHELD FIRMS EACH OWN 10 9311030140 931103 CORPORATE FOCUS CIE DES MACHINES BULL'S US FACTORY FIGHTS FOR ITS LIFE MANUFACTURING CHIEF SEEKS REVOLUTION TO SAVE COMPUTERPARTS MAKER BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON FOR MOST OF HIS LIFE IT SEEMS JOEL BECK HAS BEEN STRUGGLING WITH SOMETHING WHEN HE WAS 17 INSTEAD OF GOING TO HARVARD AS HIS FAMILY HAD PLANNED HE JOINED THE MARINES THEN HE GOT A JOB LOADING TRUCKS AT A COMPUTER PLANT HERE TOOK NIGHT COLLEGE COURSES FOR 19 YEARS AND WORKED HIS WAY UP TO MANUFACTURING VICE PRESIDENT FIVE YEARS AGO THE FACTORY WHERE HE GOT HIS START WAS ACQUIRED BY LOSSMAKING FRENCH COMPUTER COMPANY CIE DES MACHINES BULL NOW MR BECK IS LOCKED IN A NEW STRUGGLE THIS TIME TO KEEP THAT PLANT ALIVE TO STEM ITS HEAVY LOSSES STATEOWNED BULL IS LOOKING FOR UNPROFITABLE UNITS TO CLOSE MR BECK WANTS TO AVOID THAT KNIFE AND TO DO THAT THE TOUGHTALKING MANAGER HAS DECIDED HE MUST REVOLUTIONIZE THE WAY PEOPLE WORK IN HIS FACTORY IN A ROUGH SECTION OF BOSTON IF YOU DON'T MAKE MONEY THEN MAYBE BANG HE EXPLAINS RAISING HIS HANDS TO SUGGEST HIS SMALL FACTORY'S DESTRUCTION THESE ARE TIMES OF TURMOIL FOR MANY COMPUTER COMPANIES THEY ARE PARTICULARLY PAINFUL FOR SUCH FOREIGN CONCERNS AS BULL THAT GOT INTO THE US MARKET BY BUYING UP TROUBLED US COMPUTER COMPANIES AND THAT NOW FACE THE DAUNTING TASK OF TURNING THEM AROUND IN A TOUGH MARKET COME BACK AND SEE US IN A YEAR MR BECK SAYS IF WE'RE STILL HERE IT PROBABLY MEANS WE'VE SUCCEEDED ANALYSTS AREN'T VERY SANGUINE THEIR FUTURE AS A US MANUFACTURER IS DIM SAYS BRAD DAY OF DATAQUEST INC CHRIS CHRISTIANSEN AN ANALYST AT INTERNATIONAL DATA CORP TAKES A SIMILAR VIEW ADDS DAVID CARD ANOTHER IDC ANALYST YOU GET THE IMPRESSION THAT THE FRENCH GOVERNMENT IS PUMPING MONEY INTO BULL TO PROTECT FRENCH JOBS BUT WHETHER THAT INVOLVES DEVELOPING US BUSINESS IS A BIG QUESTION MARK THEIR SKEPTICISM IS UNDERSTANDABLE THE PLANT MR BECK WANTS TO SAVE IS A 47YEAROLD STRUCTURE BUILT ORIGINALLY TO HOUSE AN INDUSTRIAL BAKERY IN A TOUGH PART OF BOSTON CALLED BRIGHTON THE SONS OF THREE EMPLOYEES HAVE BEEN MURDERED NEARBY THE FACTORY WHERE BULL BUILDS THE CIRCUIT BOARDS THAT MAKE UP THE GUTS OF COMPUTERS IS THE LAST COMPUTER PLANT LEFT INSIDE A CITY WHOSE CORE GRADUALLY HAS BEEN ABANDONED BY OTHER COMPUTER MAKERS THE 600 EMPLOYEES MANY OF THEM POORLY EDUCATED IMMIGRANTS OR MINORITYGROUP MEMBERS SPEAK A TOTAL OF 24 DIFFERENT LANGUAGES INCLUDING PORTUGUESE ARMENIAN AND TWO GHANAIAN DIALECTS THERE'S ALMOST NOTHING THAT WALKS THIS GOOD EARTH THAT WE DON'T HAVE ONE OF WE'RE SORT OF LIKE NOAH'S ARK MR BECK SAYS SOME WORKERS CAN'T COMMUNICATE DIRECTLY WITH OTHERS TO MINIMIZE INSTRUCTIONS SOME PARTS ARE COLORCODED BEFORE ASSEMBLY YOU COMPENSATE FOR LANGUAGE PROBLEMS BY SHOWING PEOPLE IT'S SHOW AND TELL SAYS DONALD LANIA WHO ASSEMBLES CIRCUIT BOARDS IN THE PLANT IF YOU REALLY HAVE A PROBLEM YOU GO AND FIND SOMEONE WHO SPEAKS ENGLISH MR BECK ADDS IF YOU'RE ASKING ME KNOWING WHAT I KNOW TODAY AND STARTING OUT FRESH WOULD I BUILD THE PLANT HERE IN BOSTON THE ANSWER IS NO BUT WE HAVE ALL THIS INVESTMENT SO WHY SHOULD I MOVE THE PLANT HAS OVERCOME TOUGH ODDS JUST TO GET THIS FAR BULL ACQUIRED IT WHEN IT PICKED UP ALL OF HONEYWELL INC'S TROUBLED COMPUTER OPERATIONS IN THE LATE 1980S WHEN BULL DECIDED TO CONSOLIDATE ALL US CIRCUITBOARD PLANTS IN A SINGLE PLACE THE BRIGHTON PLANT SURVIVED BY DEMONSTRATING THAT IT WAS MORE EFFICIENT THAN A NEWER FACILITY IN PHOENIX THE CHALLENGE NOW IS EVEN GREATER BULL'S US COMPUTER SALES HAVE BEEN SO WEAK THAT IT IS MOVING AWAY FROM ASSEMBLING LARGE COMPUTERS HERE AND IS TRYING TO TURN THAT PART OF ITS US BUSINESS INTO A COMPUTER SERVICES COMPANY BULL INSISTS THAT IT WON'T ABANDON ITS SEPARATE ZENITH DATA SYSTEMS UNIT WHICH MAKES SMALLER PERSONAL COMPUTERS BUT BULL'S OWN DEMAND FOR CIRCUIT BOARDS ISN'T ENOUGH TO JUSTIFY THE BRIGHTON PLANT ANY MORE MR BECK'S SOLUTION FORCE THE PLANT INTO THE FREE MARKET BY CUTTING COSTS HEAVILY AND BECOMING A MERCHANT FACILITY SELLING MORE AND MORE PRODUCTS TO OUTSIDERS THE IDEA IS TO BECOME AN INDEPENDENT PROFIT CENTER TOO LUCRATIVE TO BE CLOSED SOME EMPLOYEES THINK OF THEMSELVES AS HIRED GUNS NOW HAVE FACTORIES WILL TRAVEL SAYS ONE ONLY HALF JOKING MR BECK SAYS THAT IF HE SUCCEEDS BULL ONE DAY MAY REPRESENT ONLY A MINORITY OF THE BRIGHTON PLANT'S SALES THE TRANSFORMATION ISN'T EASY MR BECK MUST COMPETE WITH CHEAPLABOR CIRCUITBOARD PRODUCERS IN TAIWAN OR SINGAPORE TO DO IT HE HAS SET UP JAPANESEINSPIRED MANUFACTURING SYSTEMS REORGANIZED WORKERS INTO TEAMS AND SLICED OUT LAYERS OF MANAGEMENT TWO YEARS AGO THE HARVARD BUSINESS SCHOOL INTERVIEWED FOUR SENIOR MANAGERS ABOUT THE PLANNED SHAKEUP ONLY TWO OF THE FOUR STILL ARE THERE THIS YEAR MR BECK EXPECTS TO RACK UP ONLY 12 MILLION OF SALES OF PRODUCTS OUTSIDE THE BULL GROUP OUT OF 270 MILLION IN TOTAL TURNOVER BUT HE SAYS HE HOPES TO LOG AS MUCH AS 134 MILLION IN ORDERS OUTSIDE THE GROUP FOR NEXT YEAR HE ALREADY MAKES CIRCUIT BOARDS FOR COMPETITORS LIKE HEWLETTPACKARD CO AND EVEN PRODUCES THE ELECTRONIC GUTS FOR A DASHBOARDMOUNTED RADAR DETECTOR ONE BIG HURDLE IS THAT MR BECK'S PLANT NEVER HAS BEEN PROFITABLE HE SAYS IT PROBABLY WILL HAVE A LOSS OF ABOUT 10 MILLION THIS YEAR HIS GOAL IS TO BE AT LEAST MARGINALLY IN THE BLACK NEXT YEAR BUT HE SAYS THAT IF HE WANTS TO SURVIVE HE'LL HAVE TO IMPROVE ON THAT AND PUT A BUCK IN THE KITTY HIS GOAL IS TO MAKE THE FACTORY MORE AND MORE INDEPENDENT OF BULL WITH BULL'S APPROVAL HE EVEN IS SEEKING NEW INVESTORS FROM OUTSIDE THE COMPANY BULL HAS HIRED MERRILL LYNCH & CO TO HELP LOCATE SUCH INVESTORS MR BECK SAYS HE EVEN HAS THOUGHT ABOUT TRYING TO ENGINEER A MANAGEMENT BUYOUT ALTHOUGH HE SAYS THAT ISN'T HIS TOP PRIORITY BUT IF HIS PLAN WORKS HE SAYS THE FACTORY WILL OPERATE MORE AND MORE LIKE WHAT HE CALLS BECK INC AND BULL ONE DAY COULD BECOME A MINORITY SHAREHOLDER 9311030139 931103 THOR INDUSTRIES' SALES JACKSON CENTER OHIO THOR INDUSTRIES INC SAID IT HAD RECORD PRELIMINARY SALES FOR THE FIRSTQUARTER ENDED SUNDAY SALES FOR THE QUARTER ROSE 23 TO 128 MILLION FROM LAST YEAR'S 104 MILLION THOR MAKES RECREATIONAL VEHICLES AND BUILDS SMALL AND MIDSIZE BUSES 9311030138 931103 TREASURY LETS PUBLIC ATTEND A MEETING OF DEBT COMMITTEE WASHINGTON THE TREASURY DEPARTMENT FOR THE FIRST TIME ALLOWED THE PUBLIC TO ATTEND PART OF THE QUARTERLY MEETING OF ITS PRIVATESECTOR DEBT ADVISORY PANEL UNTIL NOW MEETINGS OF THE TREASURY BORROWING ADVISORY COMMITTEE OF THE PUBLIC SECURITIES ASSOCIATION HAVE BEEN CLOSED WITH THE MINUTES OF THE PROCEEDINGS RELEASED LATER THE ADVISORY PANEL MADE UP OF BONDMARKET PROFESSIONALS MEETS WITH TREASURY DEBT MANAGERS BEFORE EACH OF THE DEPARTMENT'S QUARTERLY REFUNDING OPERATIONS THE INITIAL SEGMENT OF YESTERDAY'S MEETING WAS OPENED TO THE PUBLIC AS PART OF A SERIES OF CHANGES STEMMING FROM THE SALOMON BROTHERS INC BOND SCANDAL SOME LAWMAKERS HAD POINTED TO THE CLOSED MEETINGS AS AN EXAMPLE OF THE SORT OF CLUBBY RELATIONSHIP BETWEEN MARKET PARTICIPANTS AND FEDERAL OFFICIALS THAT MAKES IT EASIER FOR SUCH ABUSES TO OCCUR IN THE SEGMENT OPEN TO THE PUBLIC JILL OUSELEY DIRECTOR OF THE TREASURY'S OFFICE OF MARKET FINANCE RAISED THE POSSIBILITY THAT THE TREASURY COULD SELL MORE OF AN OUTSTANDING ISSUE OF 10YEAR NOTES RATHER THAN A NEW BATCH OF 10YEAR NOTES IN ITS NOVEMBER REFUNDING OPERATION THE TREASURY WILL ANNOUNCE DETAILS OF ITS NOVEMBER REFUNDING OPERATION TOMORROW DARCY BRADBURY DEPUTY ASSISTANT SECRETARY FOR FEDERAL FINANCE TOLD THE ADVISORY PANEL THAT THE TREASURY REMAINS OPTIMISTIC THAT CONGRESS THIS YEAR WILL ENACT A BILL TO MODERNIZE REGULATION OF THE GOVERNMENTSECURITIES MARKET AND PERMANENTLY EXTEND THE TREASURY'S RULEMAKING AUTHORITY OVER THE MARKET HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ WAS A MAJOR ADVOCATE OF ALLOWING THE PUBLIC TO ATTEND THE BORROWING COMMITTEE MEETINGS THE TEXAS DEMOCRAT ATTACHED A PROVISION REQUIRING SUCH A MOVE TO THE GOVERNMENTSECURITIES BILL THAT THE HOUSE PASSED LAST MONTH THE TREASURY AGREED TO THE PROPOSAL AND OPENED PART OF THE MEETING EVEN THOUGH THE LEGISLATION IS STILL PENDING PEOPLE WHO ATTENDED THE SESSION SAID AFTERWARD THAT THE PRESENCE OF REPORTERS APPEARED TO INHIBIT THE GIVEANDTAKE BETWEEN TREASURY OFFICIALS AND MEMBERS OF THE COMMITTEE AND THAT THE OPENING ECONOMIC BRIEFING WAS LESS MARKETORIENTED THAN PANELISTS WERE ACCUSTOMED TO RECEIVING AT THESE MEETINGS 9311030137 931103 BUSINESS BRIEF MEDICAL CARE AMERICA SAYS 3RDQUARTER LOSS GREW TO 1372 MILLION DALLAS MEDICAL CARE AMERICA INC STILL STRUGGLING TO REVIVE ITS HOMEINFUSION THERAPY BUSINESS REPORTED A THIRDQUARTER NET LOSS OF 1372 MILLION OR 375 A SHARE AFTER A 1473 MILLION RESTRUCTURING CHARGE IN THE YEAREARLIER QUARTER THE COMPANY HAD A NET LOSS OF 7 MILLION OR 19 CENTS A SHARE AFTER 217 MILLION IN MERGER AND RESTRUCTURING CHARGES REVENUE IN THE LATEST QUARTER ROSE SLIGHTLY TO 1549 MILLION THE RESULTS WERE FAR BELOW ANALYSTS' ORIGINAL ESTIMATES OF A PROFIT OF 36 CENTS A SHARE BEFORE CHARGES ALTHOUGH AN ESTIMATE OF THE EXPECTED LOSS WAS MADE LAST WEEK BY MEDICAL CARE WHOSE BOARD VOTED FRIDAY TO REBUFF AN ACQUISITION BID BY SURGICAL CARE AFFILIATES INC AN OPERATOR OF OUTPATIENT SURGERY CENTERS BASED IN NASHVILLE TENN IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY MEDICAL CARE WAS QUOTED AT 24 UNCHANGED THE HEALTHCARE PROVIDER SAID THE 1473 MILLION CHARGE STEMMED FROM A WRITEOFF OF GOODWILL AND RESTRUCTURING EFFORTS RELATED TO ITS LONGTROUBLED HOMEINFUSION BUSINESS WHICH PROVIDES INTRAVENOUS DRUG AND NUTRITION THERAPY TO PATIENTS AT HOME WHEN COMPLETED THE RESTRUCTURING WILL RESULT IN ANNUAL COST SAVINGS OF UP TO 40 MILLION THE COMPANY SAID MEDICAL CARE ATTRIBUTED ITS OPERATING RESULTS TO LOWER HOMEINFUSION PRICES AND SLOWER REVENUE GROWTH AT ITS OUTPATIENT SURGERY CENTERS IN RESPONSE THE COMPANY SAID IT WOULD PURSUE HIGHERVOLUME CONTRACTS WITH THIRDPARTY PAYERS BY CONTINUING TO REDEPLOY ITS SALES FORCE PROVIDING LOWERCOST INFUSION THERAPIES AND AFFILIATING WITH VARIOUS HEALTHCARE PROVIDERS AND THIRDPARTY PAYERS IN ITS MARKETS THE COMPANY RECENTLY AGREED TO JOINTLY OPERATE FACILITIES IN SEVERAL CITIES WITH COLUMBIA HEALTHCARE CORP A HOSPITAL CONCERN BASED IN LOUISVILLE KY 9311030136 931103 NEWMONT PERUVIAN GOLD MINE DENVER NEWMONT MINING CORP SAID ITS 38OWNED PERUVIAN MINE HAS BEGUN PRODUCING GOLD AT AN ANNUAL RATE OF 220000 OUNCES TOTAL PRODUCTION FROM THE MINE WILL BE ABOUT 60000 OUNCES IN 1993 THE PROJECT HAS 13 MILLION OUNCES OF GOLD RESERVES AND THE COMPANY SAID THERE IS GOOD POTENTIAL FOR INCREASING THE RESERVE BASE THE MINE IS OPERATED BY NEWMONT THE OTHER 62 INTEREST IN THE MINE IS HELD BY BUENAVENTURA A PERUVIAN MINING CONCERN THE FRENCH GOVERNMENT AND THE INTERNATIONAL FINANCE CORPEND 9311030135 931103 TECHNOLOGY SILICON GRAPHICS TANDEM PACT MOUNTAIN VIEW CALIF SILICON GRAPHICS INC SAID IT HAS AGREED TO LET TANDEM COMPUTERS INC CUPERTINO CALIF DISTRIBUTE ITS COMPUTER SERVERS AND WORKSTATION PRODUCTS TANDEM WHICH ALSO MAKES COMPUTER PRODUCTS INDICATED IT INTENDS TO MARKET SILICON GRAPHICS PRODUCTS WORLDWIDE AS PART OF ITS OWN PRODUCT LINE THE TWO COMPANIES EXPECT THE AGREEMENT TO BE WORTH IN EXCESS OF 100 MILLION IN SALES FOR SILICON GRAPHICS OVER THE NEXT TWO YEARS 9311030133 931103 TUESDAY'S MARKETS INDUSTRIALS HIT A RECORD AGAIN DOLLAR IS MIXED BY ANITA RAGHAVAN AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE GLIDED TO ITS SECONDSTRAIGHT RECORD HIGH AS INVESTORS FLOCKED TO OWN INTERNATIONAL BUSINESS MACHINES SHARES AFTER A WALL STREET BEAR TURNED BULLISH ON THE STOCK BONDS SLID AND THE DOLLAR ENDED MIXED THE INDUSTRIAL AVERAGE ENDED WITH A GAIN OF 503 POINTS AT A RECORD 369764 AFTER BRIEFLY SURPASSING THE 3700 MARK LATE IN THE DAY THE RISE IN THE INDUSTRIALS WAS MAINLY ATTRIBUTABLE TO IBM WHICH JUMPED 3 1/8 TO 50 7/8 AFTER DONALDSON LUFKIN & JENRETTE TECHNOLOGY ANALYST TOM ROONEY CHANGED HIS INVESTMENT RATING ON THE STOCK TO VERY ATTRACTIVE FROM NEUTRAL STANDARD & POOR'S 500STOCK INDEX SLIPPED 066 TO 46844 WHILE THE NASDAQ COMPOSITE INDEX ROSE 189 TO 78566 THE MIXED STOCK MARKET SHOWING CAME AFTER THE COMMERCE DEPARTMENT SAID SALES OF NEW SINGLEFAMILY HOMES SURGED A SURPRISINGLY STRONG 208 IN SEPTEMBER IT WAS THE BIGGEST RISE IN SEVEN YEARS IN ADDITION THE DEPARTMENT'S INDEX OF LEADING INDICATORS ROSE 05 IN SEPTEMBER WHILE THE POSITIVE ECONOMIC NEWS UPSET THE BOND MARKET PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES SAYS HE ISN'T WORRIED THAT HIGHER INTEREST RATES WILL HURT STOCKS AS LONG AS BOND YIELDS DON'T GO UP SIGNIFICANTLY THE RISE IN RATES ACTUALLY HELPS THE STOCK MARKET BECAUSE THOSE INDIVIDUALS WHO HAVE LOTS OF PROFITS IN BONDS ARE MOTIVATED TO CASH THEM IN HE SAYS AND WHERE DO THEY GO FROM THERE THEY OFTEN GO TO STOCKS IN EUROPE FRANKFURT STOCKS SURGED 16 TO A RECORD ON THE BACK OF A STRENGTHENING DOLLAR A RALLY IN GERMAN BONDS AND EXPECTATIONS OF LOWER GERMAN INTEREST RATES MARKETS IN SWITZERLAND THE NETHERLANDS NORWAY AND FINLAND ALSO REACHED HIGHS MEANWHILE BRITISH SHARES SLIPPED AND FRENCH STOCKS FELL 06 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 009 TO 11362 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3047 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1134 ISSUES FELL AND 891 ROSE BOND PRICES SLUMPED THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL 3/8 POINT OR 375 FOR EACH 1000 FACE AMOUNT TO YIELD 606 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17035 MARKS AND 10780 YEN COMPARED WITH 16938 MARKS AND 10820 YEN MONDAY 9311030132 931103 MCDONALD & CO REDEMPTIONS CLEVELAND MCDONALD & CO INVESTMENTS INC SAID IT REDEEMED 197000 PRINCIPAL AMOUNT OF ITS 8 CONVERTIBLE SUBORDINATED DEBENTURES DUE MARCH 1 2011 ALSO HOLDERS CONVERTED ANOTHER 12 MILLION PRINCIPAL AMOUNT INTO 993694 COMMON SHARES THE CONVERSION PRICE WAS 1208 A SHARE AS OF FRIDAY THE INVESTMENTBANKING AND BROKERAGE FIRM REDEEMED ALL OF THE 8 CONVERTIBLE SUBORDINATED DEBENTURES OUTSTANDING 9311030131 931103 INTERNATIONAL SOUTH KOREAN DEBT RISES SEOUL SOUTH KOREA SOUTH KOREA'S TOTAL EXTERNAL DEBT ROSE TO 445 BILLION AS OF THE END OF AUGUST FROM 442 BILLION AT THE END OF JULY THE CENTRAL BANK OF KOREA SAIDEND 9311030130 931103 SMALL STOCK FOCUS STOCKS FIRM AT CLOSE TO SET A RECORD FOLLOWING A DAY OF CHOPPY TRADING BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK VOLATILE BONDS CAUSED CHOPPY ACTION AMONG SMALLCOMPANY STOCKS BUT PRICES FIRMED AT THE CLOSE SENDING THE RUSSELL 2000 INDEX TO A RECORD THE INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND IN THE OTHER MAJOR MARKETS CLIMBED 067 POINT NEAR THE CLOSE TO 26017 BREAKING THROUGH ITS PREVIOUS RECORD OF 25998 SET ON OCT 15 THE DOW JONES INDUSTRIALS REVERSED EARLY WEAKNESS TO CLIMB 503 POINTS TO 369764 TOPPING MONDAY'S RECORD CLOSING AND PROPPING UP SMALLCAPITALIZATION STOCKS IN THE PROCESS NASDAQ ISSUES ALSO SEESAWED FALLING IN MORNING ACTION BEFORE PICKING UP GROUND THROUGHOUT THE AFTERNOON THE NASDAQ COMPOSITE INDEX MANAGED TO CLICK UP 189 POINTS TO FINISH AT 78566 BUT STILL SHORT OF ITS RECORD CLOSE OF 78742 ALSO HIT ON OCT 15 RICHARD SILVERMAN AN EXECUTIVE VICE PRESIDENT AND HEAD TRADER AT REICH & CO SAID SMALLER ISSUES FOLLOWED THE NEW YORK STOCK EXCHANGE'S LEAD BUT CAUTION IS STILL PERVASIVE THE INITIAL PUBLIC OFFERING MARKET IS STILL VERY STRONG MR SILVERMAN SAID IT'S SCARY WHEN IT'S THIS STRONG BECAUSE EVERYONE'S WAITING FOR A CORRECTION AMONG NEW ISSUES TRANSNATIONAL RE CORP DARTED UP TO CLOSE AT 21 7/8 ABOVE ITS DEBUT PRICE OF 20 A SHARE PROCEEDS WILL GO TO THE PHOENIX RE CORP SUBSIDIARY'S GENERAL FUNDS PHOENIX RE WHICH SLIPPED 1 1/8 TO 33 SAID IT WILL USE ADDITIONAL PROCEEDS FOR ITS INSURANCE UNIT TRANSNATIONAL INSURANCE CO LONGTERM GOVERNMENT SECURITIES DROPPED NEARLY 1/2 POINT FOLLOWING A REPORT OF BETTERTHANEXPECTED NEW HOME SALES ALSO MERRILL LYNCH & CO ADVISED INVESTORS TO MOVE MONEY INTO EQUITIES FROM BONDS DAVID SHULMAN A MARKET STRATEGIST AT SALOMON BROTHERS INC SAID MUCH OF THE NEARTERM PERFORMANCE OF SMALLER ISSUES DEPENDS UPON THE ECONOMIC DATA RELEASED OVER THE NEXT FEW SESSIONS IF THE ECONOMIC RECOVERY FALTERS SMALLCAP STOCKS MAY DO BETTER BECAUSE PEOPLE WILL LOOK TO EARNINGSGROWTH MOMENTUM AGAIN MR SHULMAN SAID WE'RE CONTINUING TO SEE CYCLICAL STOCKS LEADING THIS MARKET HIGHER BUT A LOT DEPENDS ON WHAT HAPPENS WITH THE BOND MARKET MR SHULMAN ADDED THAT EUROPE'S ECONOMY ALSO WILL BE A MAJOR FOCUS IF EUROPEAN COUNTRIES BEGIN TO SEE AN ECONOMIC RECOVERY THAT ALSO COULD KEEP INVESTOR ATTENTION ON LARGER CYCLICAL ISSUES WHICH TEND TO INVEST MORE HEAVILY OVERSEAS SMALLER FIRMS TYPICALLY CONCENTRATE ON DOMESTIC OPERATIONS GEOTEK INDUSTRIES INC MONTVALE NJ WAS NASDAQ'S SECOND MOSTACTIVE ISSUE AND JUMPED 2 3/4 OR 26 TO 13 1/2 THE COMMUNICATIONS COMPANY SAID A PARTNERSHIP THAT INCLUDES WELLKNOWN INVESTOR GEORGE SOROS AND PURNENDU CHATTERJEE HAS SIGNED A DEFINITIVE AGREEMENT TO INVEST 40 MILLION IN GEOTEK GEOTEK POSTED VOLUME OF 53 MILLION SHARES MORE THAN FIVE TIMES ITS DAILY AVERAGE BETTER EARNINGS HELPED SPIKE THE STOCK PRICE OF OXFORD HEALTH PLAN INC DARIEN CONN BY 2 TO 44 1/4 THE OPERATOR OF HEALTHBENEFIT PLANS SAID ITS THIRDQUARTER NET INCOME CLIMBED TO 50 CENTS A SHARE FROM 27 CENTS A YEAR EARLIER THE COMPANY EARNED 25 CENTS A SHARE UP FROM 14 CENTS AFTER BEING ADJUSTED FOR A 2FOR1 STOCK SPLIT PAID OCT 27 ANALYSTS HAD EXPECTED OXFORD HEALTH TO EARN 44 CENTS A SHARE ON A PRESPLIT BASIS AN IMPROVED FISCAL FIRSTQUARTER PROFIT REPORT DROVE CHESAPEAKE ENERGY CORP UP 3/4 TO 6 3/4 THE COMPANY IN OKLAHOMA CITY POSTED EARNINGS OF TWO CENTS A SHARE COMPARED WITH A SEVENCENTSASHARE LOSS IN THE YEARAGO QUARTER HOLOPAK TECHNOLOGIES INC ALSO ROSE 1/8 TO 12 1/8 ON INCREASED EARNINGS THE HOTSTAMPFOIL MAKER IN EAST BRUNSWICK NJ REPORTED FISCAL SECONDQUARTER NET INCOME CLIMBED TO 19 CENTS A SHARE FROM FIVE CENTS A YEAR EARLIER MARTECH USA NYSE ANCHORAGE ALASKA PLUNGED 3 3/4 OR 45 TO 4 1/2 ACCORDING TO A FRONTPAGE STORY IN THE WALL STREET JOURNAL YESTERDAY THE POLLUTIONCONTROL COMPANY IS UNDER INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION FOR POSSIBLE ACCOUNTING IRREGULARITIES IT HAS BEEN SUED BY THE ENVIRONMENTAL PROTECTION AGENCY AND IT HAS COME UNDER INVESTIGATION BY SEVERAL STATE AGENCIES IN ALASKA MARTECH SAID IT EMPHATICALLY DENIES THE NEGATIVE IMPLICATIONS OF THE STATEMENTS IN THE WALL STREET JOURNAL ARTICLE CONCERNING THE COMPANY AND ITS PRESIDENT BEN C TISDALE MARTECH REAFFIRMED THE COMPANY'S OPERATIONAL STRENGTHS AND CONTINUING LONGTERM BUSINESS RELATIONSHIPS IN THE CONSTRUCTION AND ENVIRONMENTAL REMEDIATION INDUSTRY 9311030129 931103 DIVIDEND NEWS HILLHAVEN CORP HILLHAVEN CORP TACOMA WASH SAID IT COMPLETED A 1FOR5 REVERSE STOCK SPLIT OF ITS COMMON STOCK AND BEGAN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE COMPANY A DIVERSIFIED HEALTHCARE PROVIDER PREVIOUSLY TRADED ON THE AMERICAN STOCK EXCHANGE THE REVERSE STOCK SPLIT WAS DECLARED EFFECTIVE FOR HOLDERS OF RECORD AS OF MONDAY HILLHAVEN NOW HAS ABOUT 21 MILLION COMMON SHARES OUTSTANDING 9311030128 931103 PEPPERAND SALT SOME OTHER ROUTINE QUIRK THE DAY'S TOOFULL BRIEFCASE WASHED UP SOMEWHERE 9311030127 931103 WHO'S NEWS BELL ATLANTIC'S FOWLER RESIGNS TO LEAD POWERFONE WIRELESS RIVAL HE FOUNDED BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL BELL ATLANTIC CORP ANNOUNCED THE RESIGNATION OF MARK S FOWLER FORMER CHAIRMAN OF THE FEDERAL COMMUNICATIONS COMMISSION WHO SPEARHEADED THE BABY BELL'S STRATEGY IN PERSONAL COMMUNICATIONS SYSTEMS MR FOWLER 52 YEARS OLD WAS PRESIDENT OF BELL ATLANTIC PERSONAL COMMUNICATIONS INC THE UNIT WHICH DEFINED THE COMPANY'S PLAN TO BUY RADIO LICENSES TO PROVIDE WIRELESS SYSTEMS ON HANDHELD POCKET GADGETS EXPECTED TO TRANSMIT AND RECEIVE PHONE AND DATA SERVICES THE FCC WHICH MR FOWLER LEFT IN 1987 RECENTLY DECIDED HOW IT WILL AUCTION THESE LICENSES A PROCESS EXPECTED TO BEGIN SOMETIME NEXT YEAR BELL ATLANTIC SAID MR FOWLER RESIGNED BECAUSE HE FACED A CONFLICT REGARDING THE COMPANY'S PURSUIT OF WIRELESS BUSINESS MR FOWLER IS TURNING ALL HIS ATTENTION TO POWERFONE HOLDINGS INC A DETROIT MOBILERADIO COMPANY THAT HE FOUNDED IN 1990 AND IN WHICH HE HOLDS A SUBSTANTIAL STAKE POWERFONE AGREED LAST WEEK TO BE ACQUIRED FOR ALMOST 400 MILLION BY NEXTEL COMMUNICATIONS INC WHICH PLANS TO OFFER CELLULARLIKE SERVICES IN BELL ATLANTIC'S OPERATING AREA NEXTEL SAID IT STILL HADN'T DECIDED WHAT SPECIFIC POSITION MR FOWLER WOULD HOLD MR FOWLER WOULD BE WORKING FOR BELL ATLANTIC'S WIRELESS OPERATIONS AND HOLDING AN INTEREST IN ANOTHER COMPANY THAT WOULD COMPETE WITH US A BELL ATLANTIC SPOKESWOMAN SAID THAT WAS THE CONFLICT MR FOWLER JOINED THE PHILADELPHIABASED BABY BELL IN APRIL 1992 AS HEAD OF THE PCS OPERATIONS MR FOWLER'S DECISION TO DEVOTE ALL HIS TIME TO HELP BUILD A NATIONWIDE NETWORK FOR MOBILE RADIO COMPANIES IS GOOD NEWS FOR NEXTEL ONE OF THE COMPANIES LEADING THIS EFFORT HE'S A RECOGNIZED PLAYER IN TELECOMMUNICATIONS AND BRINGS CREDIBILITY TO OUR INDUSTRY AND TO NEXTEL SAID MORGAN O'BRIEN THE COMPANY'S CHAIRMAN MR FOWLER'S EXTENSIVE CONTACTS ARE LIKELY TO BE A CONSIDERABLE ASSET TO NEXTEL WHICH ALONG WITH OTHER DISPATCH FIRMS MUST RAISE BILLIONS OF DOLLARS TO BUILD A NATIONWIDE NETWORK AND COMPETE WITH CELLULAR TELEPHONE FIRMS WE SAID MARK WE NEED YOU TO HELP RAISE THE FINANCING SAID PETER SULICK VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER OF POWERFONE MR FOWLER COULDN'T BE REACHED FOR COMMENT DANIEL P BEHUNIAK 46 VICE PRESIDENT AND CHIEF OPERATING OFFICER FOR BELL ATLANTIC'S PCS UNIT WILL ASSUME MR FOWLER'S RESPONSIBILITIES WITHOUT ASSUMING THE TITLE 9311030126 931103 REVIEW & OUTLOOK EDITORIAL LIVING LARGE MAGGIE THATCHER WILL SPEND HER LUNCH HOUR TODAY IN NEW YORK CITY SIGNING COPIES OF HER MEMOIR AT A BARNES & NOBLE ON FIFTH AVENUE IT SHOULD BE AN UNUSUAL SPECTACLE BUT THEN THE THATCHER PHENOMENON HAS BEEN UNUSUAL FROM THE START EVEN HER ADMIRERS ARE SURPRISED BY THE COMMERCIAL SUCCESS OF THE THATCHER MEMOIRS HER PUBLISHER IN ENGLAND CLAIMED 300000 COPIES SOLD WITHIN THE FIRST THREE DAYS BY FAR THE MOST SUCCESSFUL OPENING OF ANY BOOK IN BRITISH HISTORY IN THE US THE FIRST PRINTING OF 175000 COPIES IS SELLING OUT SHE IS DELIVERING 70 SPEECHES AND INTERVIEWS OVER THE FIRST 13 DAYS OF RELEASE WITH SUNDAY OFF THERE'S NO ESCAPE EVEN IN THATCHERPHOBIC BRUSSELS THE FRENCH TRANSLATION BEAMS FROM BOOKSHOP WINDOWS A BRIT FLEEING TO NEW YORK FINDS HIMSELF CONFRONTED WITH HER HUGE VISAGE IN BOOKSTORE DISPLAY CASES THE BBC DEVOTED LAST WEEK TO LIFE AFTER MARGARET WITH WEEKLY DOCUMENTARIES ON HER TENURE STRETCHING ON INTO THE FUTURE WE'RE SORRY WE MISSED THATCHERWORLD A DRAMATIC COMEDY IN WHICH THE THATCHER PHENOMENON IS DEPICTED AS A THEME PARK THE ODDEST MOMENT CAME DURING AN INTERVIEW WITH THE FRENCH STATION TF1 IN WHICH A FRENCH TRANSLATOR PROVIDED A VOICEOVER WHILE SHE SPOKE SEEING HER GESTURES WITHOUT HEARING HER WORDS DIRECTLY THE VIEWER IS STRUCK BY HER MANNERISMS AND THE JARRING ENERGY THAT DRIVES THE WOMAN MUCH AS WE ARE PARTISANS OF SOME OF THE IDEAS THAT BECAME ASSOCIATED WITH THATCHERISM WE MUST ADMIT THAT THIS ROUND OF THATCHERMANIA IS NOT PRIMARILY A RESPONSE TO HER POLICIES SO WE HAVE TO PROBE FURTHER TO SEE WHERE THE SIGNIFICANCE OF THIS BOOM LIES A SUPERB EDITORIAL IN THE TIMES OF LONDON HAS ALREADY IMPLIED THAT WHAT MOVES PEOPLE NOW ABOUT MRS THATCHER IS NOT HER LINKS TO ADAM SMITH BUT HER LIKENESS TO CHARLES DE GAULLE AND WINSTON CHURCHILL THAT IS INTRIGUING BECAUSE WE ARE SUPPOSED TO BELIEVE THAT WORDS LIKE GLORY MAGNIFICENCE AND GRANDEUR ARE DEEPLY UNFASHIONABLE THESE DAYS PEOPLE TAKE THEM AS AFFRONTS TO EGALITARIAN PIETY BUT THESE ARE THE STARS BY WHICH CHURCHILL DE GAULLE AND THATCHER GUIDED THEMSELVES EVIDENTLY THERE ARE STILL A LOT OF PEOPLE WHO BELIEVE THAT THESE GRAND ASPIRATIONS MAKE SENSE THERE IS A FAMOUS SCENE IN A FAREWELL TO ARMS IN WHICH HEMINGWAY'S HERO IS STANDING IN THE RAIN REFLECTING THAT WORDS SUCH AS GLORY AND HONOR ARE HOLLOW THIS RESPONSE TO THE HORRORS OF TRENCH WARFARE HAS SPREAD AND OSSIFIED INTO THE GRANDDADDY OF ALL POLITICAL CORRECTNESSES SIMILARLY WE HAVE NOTED IN THE PAST THAT IN THE US THE INTELLECTUAL AND MEDIA ESTABLISHMENT'S EMBRACE OF RISK AVOIDANCE HAS BECOME A NATIONAL RELIGION PRAGMATISM IS THE RELIGION'S CARDINAL VIRTUE BUT HAVING SNIPED OR NITPICKED GRAND AND GRANDLY FLAWED INDIVIDUALS MANY OF THESE SAME PEOPLE THEN COMPLAIN ABOUT THE PREVALENCE TODAY OF BLAND LEADERS WHO LACK VISION DE GAULLE ONCE DESCRIBED THE QUALITIES OF A PERSON WHO POSSESSES GRANDEUR HE MUST AIM HIGH SHOW THAT HE HAS VISION ACT ON THE GRAND SCALE AND SO ESTABLISH HIS AUTHORITY OVER THE GENERALITY OF MEN WHO SPLASH IN THE SHALLOW WATER AT ONCE WE SEE THE HEROISM OF DE GAULLE AND ALSO THE ELITISM MARGARET THATCHER SHARED HIS HEROIC VISION BUT INVERTED THE LAST CLAUSE SHE BELIEVED THAT IT IS THE GENERALITY OF BRITISH MEN AND WOMEN WHO POSSESS GREAT QUALITIES WHILE THOSE WHO LEAD THEIR GREAT INSTITUTIONS TODAY SPLASH IN THE SHALLOW WATER WHILE SHE WAS PRIME MINISTER BRITAIN WAS NOT A NATION IN DECLINE FRANCE CANNOT BE FRANCE WITHOUT GREATNESS DE GAULLE WROTE MRS THATCHER TRIED TO SHOW THAT BRITAIN COULD STILL ASPIRE TO GREATNESS RATHER THAN ACCEPTING SLOW DECLINE AND COMFORTABLE MEDIOCRITY FRANCE TODAY DESPERATELY NEEDS A REALISTIC VISION OF GREATNESS THE MAJORITY OF THOSE LINING UP AT THE THATCHER BOOK SIGNINGS ARE YOUNG PEOPLE THEY CAME OF AGE DURING THE ECONOMIC BOOM OF THE 1980S THEY HAVE SEEN THE FALL OF COMMUNISM SOME RECONCILIATION IN SOUTH AFRICA AND THE MIDDLE EAST THE TREMENDOUS ADVANCES IN INFORMATION TECHNOLOGY PERHAPS THESE PEOPLE ARE A LITTLE MORE OPTIMISTIC ABOUT HUMAN NATURE THAN THEIR PARENTS AND GRANDPARENTS WHO SAW THE HORRORS OF THE WORLD WARS PERHAPS TO THEM THE BIG WORDS SUCH AS GLORY AND HEROISM MAKE SENSE 9311030124 931103 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL LONGTERM CARE WOULD GET FAVORABLE TAX TREATMENT UNDER CLINTON'S HEALTH PLAN THE PLAN PROPOSES NEW RULES FOR PEOPLE UNABLE TO MANAGE TWO OR MORE PERSONAL TASKS SUCH AS EATING AND BATHING QUALIFYING EXPENSES AND INSURANCE PREMIUMS COULD BE ITEMIZED AS MEDICAL DEDUCTIONS AS LONG AS THEY EXCEED THE EXISTING FLOOR OF 75 OF ADJUSTED GROSS INCOME INSURANCE BENEFITS OF AS MUCH AS 150 A DAY TO BE INDEXED FOR INFLATION WOULD BE EXEMPT EMPLOYERS COULD DEDUCT INSURANCE PREMIUMS FOR GROUP COVERAGE WHICH WOULD BE A TAXFREE FRINGE BENEFIT FOR EMPLOYEES THESE PROVISIONS WOULD TAKE EFFECT IN 1996 HANDICAPPED WORKERS WHO NEED HELP WITH BASIC FUNCTIONS OF DAILY LIFE COULD TAKE A CREDIT FOR 50 OF THE COST OF CERTAIN PERSONAL ASSISTANCE STARTING IN 1996 THE CREDIT COULDN'T EXCEED 7500 AND WOULD BE PHASED OUT AFTER ADJUSTED GROSS INCOME TOPPED 50000 ALSO STARTING NEXT YEAR THE PLAN WOULD MAKE LAW OF PROPOSED IRS RULES THAT WOULD EXEMPT ACCELERATED LIFEINSURANCE BENEFITS PAID TO A TERMINALLY ILL PERSON LIKELY TO DIE WITHIN A YEAR IRS AUTHORITY TO EXEMPT ACCELERATED BENEFITS HAS BEEN QUESTIONED MAKING IT DESIRABLE TO ENACT A LAW NOTES DONALD ALEXANDER OF THE AKIN GUMP LAW FIRM EARLY RETIREES AGED 55 TO 64 COULD GET HEALTHCAREINSURANCE SUBSIDIES LOWINCOME PEOPLE AND RETIREES OVER 65 COULD GET AT LEAST 80 OF EMPLOYER PREMIUMS PAID BY THE GOVERNMENT UNDER CLINTON'S PLAN SO COULD EARLY RETIREES UP TO A POINT IF THEIR INCOME EXCEEDED 115000 ON A JOINT RETURN 90000 FOR SINGLES THIS BREAK WOULD BE PHASED OUT THEN THEY WOULD MAKE UP PART OR ALL OF THE SUBSIDY WHEN FILING INCOMETAX RETURNS THE PROVISION WHICH WOULD TAKE EFFECT IN 1998 WOULD MEAN ONE MORE WORKSHEET FOR THE FORM 1040 PACKAGE INCOME FOR THE THRESHOLD WOULD BE CALCULATED BY COMBINING ADJUSTED GROSS INCOME INCLUDING TAXABLE SOCIAL SECURITY BENEFITS WITH TAXEXEMPT INTEREST INCOME ANOTHER MEASURE WOULD REQUIRE EMPLOYERS WHO PROVIDE HEALTH INSURANCE TO EARLY RETIREES TO PAY A TEMPORARY SPECIAL ASSESSMENT TO THE GOVERNMENT IN 19982000 SCORPORATION OWNERS IN SERVICE BUSINESSES WOULD HAVE A NEW TAX LIABILITY CLINTON'S HEALTH PLAN WOULD REQUIRE S SHAREHOLDERS OF MORE THAN 2 INTERESTS AND LIMITED PARTNERS WHO MATERIALLY PARTICIPATE IN PARTNERSHIPS TO PAY SELFEMPLOYMENT SOCIAL SECURITY TAXES ON ALL OF AN ENTITY'S EARNINGS STARTING IN 1996 THAT INCLUDES EARNINGS NOT DISTRIBUTED AS PAY TO OWNERS IN SERVICE FIELDS SUCH AS HEALTH OR CONSULTING THE TREASURY SAYS THE AIM IS TO PREVENT AVOIDANCE OF CARE RESPONSIBILITIES AND OF SELFEMPLOYMENT TAXES ONE RESULT OWNERS OF S CORPORATIONS WHICH ARE TAXED MUCH LIKE PARTNERSHIPS COULDN'T AVOID THE RECENT EXPANSION OF THE 29 MEDICARE TAX ON SELFEMPLOYMENT INCOME THE 1993 TAX ACT ELIMINATES IN 1994 THE CURRENT 135000 CEILING ON WAGES SUBJECT TO THE MEDICARE TAX TAX ADVISERS HAVE SUGGESTED THAT OWNERS DISTRIBUTE SOME COMPANY EARNINGS AS DIVIDENDS WHICH AREN'T SUBJECT NOW TO SELFEMPLOYMENT TAX NOT AS PAY CONVERTING TO REGULAR CORPORATE STATUS TO ESCAPE THE PROPOSED TAX MIGHT RAISE OTHER TAX PROBLEMS NOTES SAMUEL STARR OF COOPERS & LYBRAND CPAS BOONDOCK DOCTORS WHO WORK AT LEAST TWO YEARS IN AREAS LACKING HEALTH PROFESSIONALS COULD GET A TAX CREDIT OF 1000 A MONTH FOR AS MANY AS 60 MONTHS UNDER CLINTON'S PLAN NURSES AND CERTAIN OTHER PROFESSIONALS COULD GET 500 CREDITS DOCTORS IN THOSE AREAS COULD WRITE OFF UP TO 27500 A YEAR FOR INVESTMENTS IN MEDICAL EQUIPMENT BLUE CROSS AND BLUE SHIELD GROUPS WOULD LOSE TWO SPECIAL TAX BREAKS IN 1997 UNDER THE CLINTON PROGRAM THE INTENTION IS TO TAX THEM THE SAME AS OTHER HEALTHINSURANCE COMPANIES AND ALL WOULD BE REQUIRED TO OFFER OPEN ENROLLMENT AND COMMUNITYRATED PREMIUMS TO THEIR CUSTOMERS PRETAX PAYMENTS FOR HEALTH CARE AND INSURANCE PREMIUMS WOULD BE ELIMINATED BY THE CLINTON PROGRAM IN 1997 NOW FLEXIBLESPENDING CAFETERIA PLANS LET EMPLOYEES REDUCE TAXABLE PAY BY CONTRIBUTING TO THE PLANS FOR HEALTH COVERAGE AFFLUENT FILERS WHO GET STATE REFUNDS HAVE A NEW CALCULATION HEADACHE YOU MUST REPORT STATE AND LOCAL INCOMETAX REFUNDS AS INCOME ON A FEDERAL RETURN TO THE EXTENT THAT YOU BENEFITED PREVIOUSLY BY TAKING ITEMIZED DEDUCTIONS FOR THE TAXES PAID FIGURING THE TAXABLE PART OF A REFUND IS EVEN TRICKIER IF ADJUSTED GROSS INCOME EXCEEDS A THRESHOLD 108450 IN 1993 THAT IS BECAUSE THE BENEFIT OF SOME DEDUCTIONS INCLUDING THE TAXES IS PHASED OUT AS INCOME RISES TO HELP FILERS FOR 1992 THE IRS PUT A WORKSHEET ON PAGE 18 OF TAXABLE AND NONTAXABLE INCOME PUBLICATION 525 BUT NOW IRS REVENUE RULING 9375 TRASHES THAT WORKSHEET BECAUSE ITS METHOD FAILS TO TREAT A FILER AS THOUGH HE ORIGINALLY HAD PAID AND DEDUCTED ONLY THE TAX ACTUALLY OWED AND GOT NO REFUND GENERALLY THE RULING'S NEW EXAMPLES SHOW A STATETAX REFUND OR A RECOVERY OF CERTAIN OTHER DEDUCTIONS IS FULLY TAXABLE FOR THESE FILERS AND RARELY IS ANY PART OF A REFUND EXEMPT THE NEW RULING IS ONE MORE REASON NOT TO OVERPAY STATE AND LOCAL TAXES STILL THE IRS WON'T APPLY THE RULING TO RETURNS FILED BEFORE 1994 NOTES ROBERT COPLAN OF ERNST & YOUNG CPAS BRIEFS TREASURY SECRETARY BENTSEN IS EXPECTED TO GIVE ESTIMATES OF THE HEALTH PLAN'S TAX EFFECTS AT A SENATE FINANCE COMMITTEE HEARING TODAY THE HOUSE WAYS AND MEANS COMMITTEE PLANS HEARINGS NOV 16 18 AND 19 ON CAREFINANCING PROPOSALS 9311030123 931103 CORRECTIONS & AMPLIFICATIONS NEWVEHICLE SALES FOR LATE OCTOBER WILL BE RELEASED TODAY MONDAY'S TRACKING THE ECONOMY COLUMN AND YESTERDAY'S TAPEWATCH GAVE AN INCORRECT DAY OF RELEASE PEOPLES HERITAGE FINANCIAL GROUP SAID IT EXPECTS 1993 EARNINGS OF 87 CENTS A SHARE IN YESTERDAY'S SMALL STOCK FOCUS COLUMN THE COMPANY'S ESTIMATE WAS INCORRECTLY REPORTED AS 70 CENTS A SHARE 9311030122 931103 WAREHOUSE CLUB ARRANGES CREDIT CHICAGO WAREHOUSE CLUB INC SAID IT COMPLETED AN AGREEMENT WITH CONGRESS FINANCIAL CORP FOR A THREEYEAR 11 MILLION LINE OF CREDIT TO BE USED FOR WORKING CAPITAL WAREHOUSE CLUB SAID THE LINE IS SECURED BY INVENTORY EQUIPMENT AND FIXTURES THE CREDIT LINE REPLACES A 1 MILLION LINE OF CREDIT WITH AMERICAN NATIONAL BANK AND A 1 MILLION LINE WITH FIRST CAPITAL INVESTMENT CORP AN AFFILIATE OF THE COMPANY'S MAJORITY SHAREHOLDER 9311030121 931103 BUSINESS BRIEF CINCINNATI MILACRON INC POSTS A LOSS FOR 3RD PERIOD PRETAX CHARGE IS CITED CINCINNATI CINCINNATI MILACRON INC SAID IT HAD A LOSS OF 78 MILLION OR 23 CENTS A SHARE IN THE FISCAL THIRD QUARTER AFTER TAKING A CHARGE TO PUT A SUBSIDIARY ON THE BLOCK THE YEAR EARLIER IT HAD NET INCOME OF 73 MILLION OR 26 CENTS A SHARE THE COMPANY TOOK AN 181 MILLION PRETAX CHARGE TO WRITE DOWN THE NET REALIZABLE VALUE OF ITS SANO OPERATION A MAKER OF BLOWN AND CAST FILM SYSTEMS FOR PLASTIC FILM USED IN GARBAGE AND SHOPPING BAGS CINCINNATI MILACRON SAID SANO'S LOSS HAS TOTALED MORE THAN 3 MILLION SO FAR THIS YEAR OVERALL SALES FOR THE THIRDPERIOD ENDED OCT 9 CLIMBED 33 TO 3007 MILLION FROM 2255 MILLION SEPARATELY CINCINNATI MILACRON SAID IT REACHED AN AGREEMENT TO BUY KLOCKNERWERKE AG'S PLASTICS INJECTION MOLDING MACHINE BUSINESS FOR 56 MILLION THE ACQUISITION WILL EXPAND OUR TECHNOLOGY AND PRODUCT LINE OFFERING AND WILL HELP US ACHIEVE OUR PREVIOUSLY ANNOUNCED STRATEGIC OBJECTIVE OF ESTABLISHING A MANUFACTURING AND DISTRIBUTION BASE IN GERMANY THE COMPANY SAID CINCINNATI MILACRON ALSO NAMED TWO NEW DIRECTORS DARRYL F ALLEN 50 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TRINOVA CORP AND JAMES E PERRELLA 58 CHAIRMAN AND CHIEF EXECUTIVE OF INGERSOLLRAND CO ONE OF THE NEW DIRECTORS SUCCEEDS MARY GOOD 62 A FORMER ALLIEDSIGNAL INC SENIOR VICE PRESIDENT WHO RESIGNED TO TAKE A POSITION WITH THE CLINTON ADMINISTRATION THE OTHER SEAT IS AN ADDITION AND BRINGS THE BOARD STRENGTH TO 10 WITH RISING ORDERS CUSTOMER INQUIRIES AND QUOTATION LEVELS CINCINNATI MILACRON SAID IT EXPECTS MACHINE TOOL AND PLASTIC MACHINERY SALES TO CLIMB 15 TO 20 IN THE FOURTH QUARTER A YEAR EARLIER THOSE TWO SECTORS GENERATED 193 MILLION OF SALES FOR THE QUARTER ENDED JAN 2 1993 THE COMPANY EARNED 95 MILLION OR 34 CENTS A SHARE ON SALES OF 2181 MILLION 9311030120 931103 REMINGTON TO BUY HAIRAPPLIANCE UNIT FROM BRISTOLMYERS NEW YORK SHAVINGPRODUCTS MAKER REMINGTON PRODUCTS INC IS EXPECTED TO ANNOUNCE TODAY THE PURCHASE OF THE HAIRCARE APPLIANCE BUSINESS OF BRISTOLMYERS SQUIBB CO FOR BETWEEN 50 MILLION AND 100 MILLION WHILE THE COMPANIES WOULDN'T COMMENT ON THE TALKS ONE OFFICIAL CLOSE TO THE TALKS SAID HE EXPECTED AN ANNOUNCEMENT TODAY REPORTS OF THE DISCUSSIONS FIRST APPEARED IN BRANDWEEK A MARKETING TRADE PUBLICATION ANALYSTS HAVE BEEN EXPECTING A SALE OF THE APPLIANCE DIVISION OF BRISTOLMYERS'S CLAIROL SUBSIDIARY FOR SOME TIME THE APPLIANCE DIVISION HAS ANNUAL SALES OF ABOUT 120 MILLION A PRICE IN THE 50 MILLION100 MILLION RANGE WOULD BE BELOW ANALYSTS' EXPECTATIONS THE UNIT BASED IN STAMFORD CONN SELLS HAIR DRYERS MAKEUP MIRRORS CURLING IRONS AND OTHER HAIR APPLIANCES REMINGTON BASED IN BRIDGEPORT CONN SELLS SHAVING PRODUCTS AND HAS A LEADING SHARE OF THE WOMEN'S SHAVER MARKET BRISTOLMYERS'S APPLIANCE DIVISION HAS BEEN A REAL LACKLUSTER BUSINESS SAID HEMANT SHAH AN INDEPENDENT ANALYST BRISTOLMYERS MISTAKENLY THOUGHT THERE WERE SYNERGIES BETWEEN CLAIROL HAIRCARE PRODUCTS AND HAIRCARE APPLIANCES HE SAID NOTING THAT THE TWO PRODUCT LINES ARE GENERALLY SOLD IN DIFFERENT TYPES OF RETAIL OUTLETS THE BUSINESS IS ALSO COMING UNDER MORE INTENSE COMPETITIVE PRESSURE FROM DISCOUNTERS HE ADDED RONALD NORDMANN AN ANALYST AT PAINEWEBBER SAID HE WOULD WELCOME SUCH A SALE AND WOULD LIKE TO SEE AN EVEN MORE AGGRESSIVE RESTRUCTURING PROGRAM BUT IT'S UNLIKELY CLAIROL ITSELF WOULD BE SOLD WHILE RICHARD L GELB WHOSE FAMILY FOUNDED CLAIROL IS CHAIRMAN OF THE COMPANY HE SAID ANY SALE OF THE APPLIANCE DIVISION WOULD BE TOO SMALL TO SUBSTANTIALLY AFFECT BRISTOLMYERS' BOTTOM LINE BUT IT WOULD GIVE INVESTORS A REAL PSYCHOLOGICAL BOOST THAT PERHAPS OTHER RESTRUCTURING STEPS ARE IN THE NEAR FUTURE HE SAID EVEN THOUGH THE CLAIROL DIVISION HASN'T BEEN GROWING IN RECENT YEARS MR SHAH ADDED BRISTOLMYERS IS LIKELY TO KEEP IT TO CUSHION THE IMPACT OF PATENT EXPIRATIONS ON SEVERAL MAJOR DRUGS COMING UP IN THE NEXT FEW YEARS BRISTOLMYERS STOCK CLOSED UNCHANGED AT 59 IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9311030119 931103 BUSINESS BRIEFS WALGREEN CO WILL BUILD A 60 MILLION DISTRIBUTION CENTER IN WOODLAND CALIF TO OPEN JUNE 1 1995 SUBJECT TO CONSTRUCTION PERMITS AND APPROVALS MALAYSIAN HELICOPTER SERVICES A UNIT OF TECHNOLOGY RESOURCES INDUSTRIES WILL ACQUIRE A 249 STAKE IN WORLDCORP'S WORLD AIRWAYS UNIT FOR 274 MILLION RANDERS GROUP INC MUSKEGON MICH SIGNED A LETTER OF INTENT TO ACQUIRE THE ASSETS AND BUSINESS OF EPC INTERNATIONAL INC A PRIVATELY HELD ENGINEERING AND CONSTRUCTION MANAGEMENT CONCERN FOR AN UNDISCLOSED AMOUNT JOHNSON & HIGGINS NEW YORK ACQUIRED A 25 INTEREST IN BROCKMAN & SCHUH A MEXICAN INSURANCE BROKERAGE FIRM TERMS WEREN'T DISCLOSED CHAMPION INTERNATIONAL CORP SOLD ITS MONTANA BONNER & LIBBY WOOD PRODUCTS MANUFACTURING FACILITY TO STIMSON LUMBER CO CHAMPION ALSO SOLD ABOUT 870000 ACRES OF TIMBERLANDS TO PLUM CREEK TIMBER CO 9311030118 931103 WORLD MARKETS FRANKFURT STOCK PRICES RALLY 16 TO A RECORD PARTLY ON HOPES FOR FURTHER INTERESTRATE CUTS A WALL STREET JOURNAL ROUNDUP FRANKFURT EQUITIES SOARED 16 TO A NEW CLOSING HIGH PARTLY ON HOPES FOR FURTHER REDUCTIONS IN INTEREST RATES LONDON STOCKS SLIPPED AS THE MARKET GROPED FOR DIRECTION DESPITE BRITAIN'S PLANS TO REDUCE GOVERNMENT SPENDING TOKYO SHARES ENDED MOSTLY LOWER TUESDAY AFTER SURRENDERING SOLID INTRADAY GAINS AS ARBITRAGERS UNLOADED EQUITIES AHEAD OF A JAPANESE HOLIDAY THAT WILL CLOSE THE MARKET WEDNESDAY BUT HONG KONG STOCKS ADVANCED TO ANOTHER ALLTIME HIGH WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11362 UP 009 REFLECTING HIGHER ASIA/PACIFIC MARKETS AND LOWER AMERICAN AND EUROPEAN MARKETS FORESTPRODUCTS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 15797 UP 427 OR 28 WITH LOUISIANAPACIFIC OF THE US POSTING AN 81 GAIN IN ITS LOCAL CURRENCY DRUGRETAILER STOCKS TRAILED AT 10381 DOWN 129 OR 12 WITH RITE AID OF THE US SLIDING 16 IN LOCAL CURRENCY IN FRANKFURT THE DAX 30STOCK INDEX SURGED 3346 POINTS TO 209558 THE INDEX OPENED AT ITS INTRADAY LOW OF 207184 AND ROSE TO A TRADING HIGH OF 209783 BEFORE RETREATING SLIGHTLY ALL OF THE DAX SHARES ADVANCED MARKET SENTIMENT GOT A BOOST IN THE MORNING FROM THE ANNOUNCEMENT BY THE GERMAN BUNDESBANK THE CENTRAL BANK OF A VARIABLERATE TENDER FOR ITS NEXT ROUND OF 13DAY AND 28DAY SECURITIES REPURCHASE AGREEMENTS TO BE ACCEPTED TODAY MOST TENDERS ARE AT FIXED RATES SO THE VARIABLERATE TENDER COULD BE INTERPRETED AS A PRELUDE TO A FURTHER CUT IN KEY GERMAN LENDING RATES POSSIBLY AROUND EARLY DECEMBER THE FRANKFURT MARKET ALSO WAS DRIVEN BY GOOD LIQUIDITY RESULTING FROM CASH FLOWING OUT OF BONDS AND FIXEDTERM DEPOSITS AS YIELDS DROP AND BECOME UNATTRACTIVE RELATIVE TO EQUITIES INVESTORS WERE SHRUGGING OFF ANY DISAPPOINTING CORPORATE OR ECONOMIC NEWS AND JUMPING ON THE STOCKMARKET BANDWAGON IN ANTICIPATION OF A STRONG RALLY SOME OF YESTERDAY'S GAINS WERE ATTRIBUTED TO BUYING OF RELATIVE BARGAINS AMONG SECONDTIER BLUE CHIPS THAT HAVE HAD LAGGING PERFORMANCES LATELY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EDGED DOWN 03 POINT TO 31641 THE FT 30STOCK INDEX EASED 47 POINTS TO 23874 VOLUME WAS 6644 MILLION SHARES UP SHARPLY FROM 4655 MILLION SHARES A DAY EARLIER NEWS THAT BRITAIN'S TREASURY CHIEF HAD FIRMED UP PLANS FOR SPENDING CUTS TO KEEP THE LID ON THE DEFICIT DIDN'T SWAY THE MARKET AND LITTLE CORPORATE NEWS OF CONSEQUENCE EMERGED THUS PRICES ON THE 100SHARE INDEX FLUCTUATED WITHIN A 15POINT RANGE ALL DAY WITH DEALINGS GENERALLY CONCENTRATED ON SWITCHING BETWEEN AND WITHIN SECTORS IN PARIS WHERE THE EXCHANGE HAD BEEN CLOSED MONDAY FOR A HOLIDAY STOCKS SANK FOLLOWING EARLY GAINS AS WALL STREET'S EARLY WEAKNESS DESPITE ENCOURAGING US ECONOMIC INDICATORS CONTRIBUTED TO THE BEARISH SENTIMENT IN FRANCE IN AMSTERDAM A RALLY LEFT PRICES WITH GAINS THOUGH OFF THE DAY'S HIGHS IN REACTION TO NEW YORK'S BROADLY WEAKER OPENING THE DUTCH MARKET'S STRENGTH CONTINUED ON THE DOLLAR'S MUSCLE AND ADVANCES ON SOME OTHER BIG EUROPEAN BOURSES IN MILAN STOCKS DECLINED AS SENTIMENT WAS DAMPED BY THE WIDENING SCANDAL INVOLVING ITALIAN CORPORATE KICKBACKS TO POLITICIANS IN MADRID SHARES OPENED HIGHER BUT ENDED LOWER BRAKED BY NEW YORK STOCKS' SOFT START IN STOCKHOLM EQUITIES RETREATED SHARPLY DRAGGED DOWN BY DISAPPOINTING CORPORATE NEWS AMONG SWEDISH BLUE CHIPS BUT IN ZURICH SHARE PRICES SURGED AS POSITIVE SWISS INFLATION NEWS A FIRM US DOLLAR AND A STRONG ADVANCE AMONG CHEMICAL SHARES TRIGGERED A BROADBASED RALLY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH PLUMMETED 26473 POINTS MONDAY LOST 5700 TO 1938124 NEAR THE SESSION'S LOW OF 1934203 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A THIN 210 MILLION SHARES DOWN FROM 2301 MILLION SHARES A DAY EARLIER RETREATING ISSUES OUTNUMBERED ADVANCING ISSUES 518438 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 1084 POINTS MONDAY ADDED 212 TO 162187 WHILE EAST JAPAN RAILWAY MANAGED A GAIN OF 3000 YEN TO 495000 YEN 457430 IT WAS BROUGHT DOWN FROM EARLIER GAINS BY LATE PROFITTAKING A WEEK AGO JR EAST SURGED 58 TO 600000 YEN BUT HAS BEEN ON THE DECLINE SINCE AND ITS RECOVERY TUESDAY MORNING ABOVE 500000 YEN LED THE BROADER MARKET HIGHER AS INVESTOR SENTIMENT WARMED THE NIKKEI ALSO GOT SOME SUPPORT FROM BARGAINHUNTING BY JAPANESE INVESTMENT TRUST FUNDS AND OVERSEAS INSTITUTIONAL INVESTORS BUT WEAKNESS IN INDEX FUTURES LED ARBITRAGERS TO SELL OFF STOCK POSITIONS WHICH QUICKLY BROUGHT PRICES DOWN AMID THE THIN TURNOVER MANY INVESTORS KEPT TO THE SIDELINES AWAITING THE JAPANESE GOVERNMENT'S EXPECTED DETAILING OF HOW IT WILL CUT INCOME AND PROPERTY TAXES TO SPUR THE ECONOMY EVEN THOUGH THE ANNOUNCEMENT MAY BE WEEKS AWAY IN HONG KONG STOCKS ADVANCED TO NOTCH ANOTHER RECORD BUT LATE SELLING PRESSURE KNOCKED DOWN MOST OF THE DAY'S EARLY GAINS PRICES SWUNG ERRATICALLY WITH AN INITIAL DROP PROMPTING BARGAINHUNTING THAT PUSHED THE HANG SENG INDEX BACK UP TO AN ALLTIME INTRADAY HIGH OF 971638 BUT THE WIDE PREMIUM THAT HAD PREVAILED FOR HANG SENG FUTURES RELATIVE TO THE STOCK MARKET ERODED AND EQUITIES TUMBLED TO END WITH SMALLER GAINS IN SYDNEY STOCKS SLIPPED AMID TURNOVER THAT WAS LOW BECAUSE OF THE RUNNING OF AUSTRALIA'S PREMIER HORSE RACE THE MELBOURNE CUP IN TAIPEI SHARES SURGED TO A FIVEMONTH HIGH IN HECTIC DEALINGS BOOSTED BY BETTERTHANEXPECTED CORPORATE EARNINGS REPORTS FOR THE THIRD QUARTER IN WELLINGTON PROFITTAKERS PUSHED SHARE PRICES BACK IN AFTERNOON TRADING BUT THE MARKET STILL FINISHED HIGHER FOR THE NINTH CONSECUTIVE SESSION ONCE AGAIN BANGKOK STOCKS RECORDED A NEW CLOSING HIGH OF 135775 ON THE SET INDEX RALLYING 3159 POINTS OR 24 LED BY A 59 ADVANCE FOR BANKING SHARES 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 9311030117 931103 SYLVAN FOOD'S UNIT MAY END SHUT DOWN AFTER VOTE ON PROPOSAL SARVER PA UNITED STEELWORKERS EMPLOYEES OF SYLVAN FOOD HOLDINGS INC'S MOONLIGHT MUSHROOMS INC WILL VOTE TODAY ON A CONTRACT PROPOSAL THAT COULD END THE MOONLIGHT PLANT'S SHUT DOWN WHICH BEGAN MONDAY SYLVAN THE THIRD LARGEST DOMESTIC GROWER AND MARKETER OF FRESH MUSHROOMS HAS ASKED FOR STRICT WAGE AND BENEFIT CONCESSIONS FROM ITS 950 MOONLIGHT WORKERS IF THE CONTRACT IS NOT APPROVED THE COMPANY HAS SAID IT WILL CUT OFF NEGOTIATIONS USW NEGOTIATORS CALLED THE CONTRACT A NEGATIVE PACKAGE UNDER THE PROPOSED CONTRACT SYLVAN HAS PROMISED TO ESTABLISH MOONLIGHT AS AN INDEPENDENT COMPANY AND TO DISTRIBUTE 15 OF THE NEW COMPANY'S EQUITY IN THE FORM OF COMMON STOCK TO ITS UNIONIZED WORK FORCE AFTER TWO CONSECUTIVE QUARTERS OF PROFITABILITY THE COMPANY ALSO AGREED TO REDUCE THE CONTRACT TERM TO FIVE YEARS FROM SIX YEARS IN RETURN TIMEANDAHALF PAY FOR SUNDAY WORK AND DIFFERENT PAY SCALES FOR NIGHT SHIFTS WOULD BE ELIMINATED AT THE FARM ALONG WITH A REDUCTION IN HOLIDAY HEALTH AND VACATION BENEFITS MOONLIGHT PRESIDENT GARY WALKER SAID IF THE WORKERS VOTE TO ACCEPT THE CONTRACT THE SHUT DOWN WOULD HALT IMMEDIATELY AND CROPPING WOULD INITIATE TOMORROW 9311030115 931103 TECHNOLOGY & HEALTH GEOTEK WILL GET INFUSION OF CASH FROM SOROS OTHERS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL GEORGE SOROS AND OTHER INVESTORS WILL PUT 40 MILLION INTO GEOTEK INDUSTRIES INC A COMPANY THAT HOPES TO PROVIDE CELLULARLIKE SERVICES USING AN UNUSUAL ISRAELI DEFENSE TECHNOLOGY GEOTEK A SMALL TELECOMMUNICATIONS COMPANY BASED IN MONTVALE NJ UNTIL NOW HAS BEEN LARGELY OVERLOOKED AMID THE FLURRY OF RECENT DEALS BY LARGE MOBILE RADIO PLAYERS SUCH AS NEXTEL COMMUNICATIONS INC THESE COMPANIES ARE RACING TO CONVERT THEIR ANALOG DISPATCH NETWORKS TO DIGITAL AND PROVIDE CELLULARLIKE PHONE AND DATA SERVICES TO BUSINESSES WITH FLEET OPERATIONS INCLUDING COURIERS TRUCKERS AND REAL ESTATE AGENTS GEOTEK SAID THE 40 MILLION INVESTMENT WILL BE MADE BY A PARTNERSHIP THAT INCLUDES MR SOROS AND PURNENDU CHATTERJEE AN ADVISER TO SOROS FUND MANAGEMENT WHICH MANAGES MORE THAN 10 BILLION IN INVESTMENTS IN EXCHANGE GEOTEK WILL ISSUE 444445 SHARES OF ITS PREFERRED H STOCK FOR 9 EACH OF THE PREFERRED SHARES CAN BE CONVERTED INTO 10 COMMON SHARES THE 40 MILLION REPRESENTS ONE OF THE LARGEST INVESTMENTS MADE BY SOROS FUND MANAGEMENT TO DATE IN THE WIRELESS INDUSTRY INVESTORS WERE PLEASED WITH THE NEWS IN NASDAQ STOCK MARKET TRADING GEOTEK'S SHARES ROSE 275 OR 26 TO CLOSE AT 1350 THE INFRASTRUCTURE OTHER MOBILE RADIO COMPANIES PLAN TO SET UP CONSISTS OF A SERIES OF TRANSMISSION TOWERS THAT BOUNCE WIRELESS CALLS OVER THE AIRWAVES BUT GEOTEK'S TECHNOLOGY IS DIFFERENT IT WAS DEVELOPED BY THE ISRAELI DEFENSE DEPARTMENT AS A WAY TO JAM ENEMY RADIO SYSTEMS AS WELL AS FOR GROUNDTOAIR COMMUNICATIONS GEOTEK'S SYSTEM DIVIDES A RADIO FREQUENCY INTO SEVERAL SECTORS THANKS TO A COMPUTER EACH CONVERSATION CONSTANTLY HOPS TO ANY AVAILABLE CHANNEL A PROCESS AKIN TO A FURIOUS GAME OF MUSICAL CHAIRS THUS ON A SYSTEM WITH 10 CHANNELS ABOUT 300 CONVERSATIONS CAN TAKE PLACE AT ONE TIME COMPARED WITH ONLY 10 CONVERSATIONS USING TRADITIONAL CELLULAR TECHNOLOGY IT'S A FREQUENCYHOPPING GAME SAID YARON EITAN GEOTEK PRESIDENT AND CHIEF EXECUTIVE OFFICER GEOTEK PLANS TO USE ABOUT 25 MILLION OF THE SOROS INVESTMENT TO BUILD RADIO TRANSMISSION TOWERS ALONG THE NORTHEAST CORRIDOR WHEN THE REGION'S NETWORK IS COMPLETELY BUILT UP BY THE END OF 1995 GEOTEK EXPECTS TO SELL ITS CELLULARLIKE SERVICE TO BETWEEN 13000 AND 15000 SUBSCRIBERS IN EACH MAJOR NORTHEASTERN CITY THE COMPANY LATER PLANS TO EXPAND TO OTHER MAJOR METROPOLITAN AREAS IN THE US GEOTEK ALSO SAID IT FORMED A STRATEGIC ALLIANCE WITH THE SOROS GROUP TO BUY LICENSES AND CONSTRUCT SIMILAR DIGITAL WIRELESS NETWORKS IN OVERSEAS MARKETS MAINLY IN EUROPE AND LATIN AMERICA GEOTEK ALREADY HAS BUILT A NATIONWIDE NETWORK IN BRITAIN SIGNING ON ABOUT 40000 COMMERCIAL USERS THAT NETWORK WHICH MIRRORS THE NETWORK GEOTEK PLANS TO SET UP IN THE NORTHEAST COST ABOUT 24 MILLION TO BUILD A SPOKESWOMAN SAID 9311030114 931103 FINANCING BUSINESS NEORX CORP NEORX CORP SEATTLE SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER TWO MILLION ADDITIONAL SHARES AFTER A PROPOSED 1FOR4 REVERSE SPLIT OF ITS COMMON STOCK OUTSTANDING THE BIOTECHNOLOGY CONCERN NOW HAS 382 MILLION SHARES OUTSTANDING AFTER THE SPLIT WHICH IS SUBJECT TO SHAREHOLDERS' APPROVAL DEC 7 IT WILL HAVE 95 MILLION SHARES THE COMPANY SAID PROCEEDS FROM THE OFFERING OF AN ADDITIONAL TWO MILLION POSTSPLIT SHARES WOULD BE USED FOR RESEARCH AND PRODUCT DEVELOPMENT AN UNDERWRITING GROUP MANAGED BY MABON SECURITIES GROUP WILL OFFER THE SHARES 9311030113 931103 INTERNATIONAL BECHTEL GROUP OTHERS TO BUILD SAUDI PLANT VALUED AT 104 BILLION MANAMA BAHRAIN REUTER SAUDI ARABIA SIGNED CONTRACTS VALUED AT 104 BILLION FOR THE CONSTRUCTION OF A HUGE DESALINATION AND POWER PLANT ONE OF THE CONTRACTORS SAID THE DESALINATION PART OF THE PROJECT VALUED AT 4764 MILLION WENT TO KHIC THE SOUTH KOREAN COMPANY THE PROJECT TO BE COMPLETED IN MID1998 WILL BE SITUATED ON THE RED SEA TO HELP MEET RISING DEMAND IN WESTERN SAUDI ARABIA 9311030112 931103 QANTAS INVITES YOU TO AUSTRALIA BEAUTIFUL LAND OF LEIS AND ALOHAS BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL LEGROOM WAS NOT THE PROBLEM UNDER A PIERCING BLUE SKY A MAN RECLINES ON AN AIRLINE SEAT SITTING ON A PRISTINE BEACH THE FROTH OF THE SEA ABOUT TO GENTLY CARESS HIM LIKE THE WARM LICK OF A DOG YOU'LL FEEL LIKE YOU'RE IN AUSTRALIA AS SOON AS YOU'RE ON QANTAS SINGS THE HEADLINE OF THE AD MAYBE SOONER ESPECIALLY IF YOU VISIT LANIKAI BEACH ON OAHU IN HAWAII WHERE THE AD WAS SHOT THE DISCLOSURE THAT AN AMERICAN AD AGENCY USED A HAWAIIAN BEACH AS A STANDIN FOR AUSTRALIA HAS SET OFF A TRANSPACIFIC SHOUTING MATCH THE MOST BEAUTIFUL ISLANDS IN THE WORLD CROWS A NEW BUT PREVIOUSLY PLANNED AD ON BEHALF OF HAWAII BIGGER BETTER WILDER RETORTS A QANTAS SPOKESMAN ON BEHALF OF AUSTRALIAN BEACHES LAST WEEK QANTAS AIRWAYS PULLED ADVERTISING FROM US MAGAZINES SUCH AS TRAVEL & LEISURE AND CONDE NAST TRAVELER AS WELL AS FROM A CABLE CHANNEL THE HONOLULU ADVERTISER WHICH FIRST REPORTED THE STORY HAS DUBBED THE INCIDENT QANTASGATE HAWAII TAKES TOURISM NOW AT A FIVEYEAR LOW SERIOUSLY IN AUSTRALIA THE EUCALYPTUS LEAVES HIT THE FAN ASKED THE SYDNEY TELEGRAPH MIRROR IF QANTAS'S ADVERTISING AGENCY CAN'T RAISE THE ENERGY TO COME TO AUSTRALIA WHY SHOULD ANYONE ELSE BOTHER QANTAS HAS BEEN INUNDATED WITH FAXES SOME SUGGESTING THAT IT TRY PASSING OFF THE SWISS ALPS OR THE GREAT PYRAMID AS AUSTRALIAN ATTRACTIONS A VERY SERIOUS ERROR OF JUDGMENT CONCEDES KEN BOYS A SPOKESMAN FOR QANTAS IN SYDNEY HE SAYS THE RUCKUS IS UNDERSTANDABLE ESPECIALLY SINCE AUSTRALIA ONCE BERATED A JAPANESE AD AGENCY FOR TRYING TO PASS OFF A DOWN UNDER BEACH AS SAIPAN THE US TERRITORY THE AD AGENCY D'ARCY MASIUS BENTON & BOWLES INC SAYS THAT IT WASN'T TRYING TO MISLEAD ANYONE BUT THAT THE SHOT WAS DONE ON A TIGHT DEADLINE WITH A SKIMPY TRAVEL BUDGET AND WHEN THE AD WAS PHOTOGRAPHED LAST SUMMER THE WINTER WEATHER DOWN UNDER WAS UNPREDICTABLE BUT THE AGENCY POINTS OUT THE AD'S CREATIVE DIRECTOR WAS AUSTRALIAN AS WAS THE ACTOR SITTING ON THE BEACH A D'ARCY OFFICIAL WHO WOULDN'T SPEAK OFFICIALLY WHISPERS IT'S NOT UNUSUAL REMEMBER THAT KOALA BEAR IN THE QANTAS AD IT LIVED IN THE SAN DIEGO ZOO QANTAS'S MR BOYS DOESN'T DENY IT OH SURE HE SAYS THE BEAR AFTER ALL HAD AN AMERICAN ACCENT 9311030111 931103 LEISURE & ARTS BOOKSHELF A SAGA OF NELSON'S NAVY BY JOHN LEHMAN THE ALASTORS CAME AT THEM WITH A FURIOUS SPIRIT AND IN THE VERY FIRST CLASH HALFWAY ACROSS THE DECK ONE SHOT JACK'S HAT FROM HIS HEAD THE BULLET SCORING HIS SKULL AND ANOTHER LUNGING WITH A LONG PIKE BROUGHT HIM DOWN THE CAPTAIN'S DOWN' SHRIEKED DAVIES HE CUT THE PIKEMAN'S LEGS FROM UNDER HIM AND BONDEN SPLIT HIS HEAD FOR THE LAST 20 YEARS OR SO PASSAGES SUCH AS THIS ONE HAVE BEEN SAVORED BY A SMALL BUT ADDICTED COMPANY OF NAVAL PERSONS ACADEMICS AND OTHERS DEVOTED TO THE WRITINGS OF PATRICK O'BRIAN OUR ENJOYMENT OF EACH NEW NOVEL ABOUT JACK AUBREY THE ROBUST AND SENSUAL ROYAL NAVY CAPTAIN AND STEPHEN MATURIN THE SHIP'S SURGEON NATURALIST AND MASTER SPY WAS GREATLY INCREASED BY THE DIFFICULTY OF PROCURING EACH BOOK FROM LONDON AND THE AWARENESS THAT WE WERE FAR INDEED ABOVE THE TASTES OF THE READING MASSES WIT AMERICAN PUBLISHING DRIVEN BY BESTSELLER LISTS AND POLITICALLY CORRECT BOOK CLUB EDITORS WE WERE SMUGLY CONFIDENT THAT OUR OWN HEIR TO THE GREATNESS OF MELVILLE AND CONRAD WAS SAFE FROM THE INDIGNITIES OF AMERICAN DISCOUNT CHAINS THEN STARLING LAWRENCE AN EDITOR AT NORTON WENT AND SPOILED IT BY PUBLISHING THE WHOLE SERIES NOW TO THE HORROR OF HIS CULTFOLLOWERS MR O'BRIAN AT AGE 78 AND 45 YEARS AFTER HIS FIRST NOVEL IS BECOMING A SUPERSTAR RARELY HAS LITERARY FAME BEEN SO LONG DEFERRED AND SO WELLDESERVED THE SEA WITH ITS SOLITUDE ITS UNFORGIVING FEROCITY AND ITS ROMANTIC LORE HAS PRODUCED SOME OF OUR GREATEST LITERATURE IT HAS ATTRACTED THE TALENTED AND THE ADVENTUROUS COMMINGLED WITH THE LESS ADMIRABLE AND MISFIT PACKAGED THEM IN VESSELS THAT TRANSPORT THEM TO EPISODES OF CATASTROPHE BEAUTY AND TERROR PUNCTUATED WITH LONG PERIODS IN WHICH TO REFLECT AND ABSORB IT HAS PRODUCED A NEW CLASSIC IN THIS EPIC SERIES ABOUT THE ROYAL NAVY DURING THE NAPOLEONIC WARS BEGINNING WITH MASTER AND COMMANDER MR O'BRIAN HAS CREATED AND DEVELOPED TWO COMPLEX AND FASCINATING HEROES TAKING THEM THROUGH 16 NOVELS OF HIGHSEAS ADVENTURE THEIR FRIENDSHIP PROCEEDS THROUGH COMPLEX ROMANCES MULATTO CHILDREN INTRIGUES MARRIAGES BANKRUPTCIES ESPIONAGE SELFMADE FORTUNES WARS AND BATTLES IN EVERY SEA AND EVERY LATITUDE THE NEWEST IN THE SERIES THE WINEDARK SEA NORTON 261 PAGES 22 HAS THE MOST INTERESTING GEOGRAPHY YET IT BEGINS IN THE MYSTERIOUSLY BOILING SEA NEAR A VOLCANIC ISLAND IN THE SOUTHWEST PACIFIC PROCEEDS OFF THE COAST OF CHILE AND INCLUDES AN ADVENTUROUS TREK ACROSS THE HIGH ANDES WITH A NARRATIVE EQUAL TO THE BEST TRAVEL LITERATURE BACK ABOARD SHIP THE PAIR PLAY THEIR VIOLIN AND CELLO DUETS AUBREY HAS AN AMATI VIOLIN AND MATURIN A GUARNERI CELLO INTO THE ICE OF THE GREAT SOUTHERN OCEAN WHERE THEY ARE NEARLY GRABBED BY AN AMERICAN FRIGATE DESPITE THE NEW FAME THE AUBREYMATURIN SERIES IS NOT HAPPILY FOR EVERYONE TO DERIVE ITS FULLEST JOYS THE READER NEEDS THE INTELLECTUAL AND CULTURAL CURIOSITY OF MATURIN HIMSELF MR O'BRIAN TRANSPORTS THE READER INTO GEORGIAN ENGLAND BUT THE PASSAGE MUST BE EARNED BY MASTERING THE LINGO NOT ONLY OF THE WOODEN WORLD OF NELSON'S NAVY BUT THE BOUDOIRS LAW COURTS AND DRAWING ROOMS OF NAPOLEONIC EUROPE SUCH TERMS AS WUTHER WHARFINGER SCUTTLEBUT TURVES JOLLYBOAT SLIMEDRAUGHT KNIPPERDOLLING TEAPOY STOAT NULLIFIDIAN MOBCAP MANGELWURZEL GROAT GLEBE LAUDANUM FAG FARRIER FENIANS EUCHRE DROVER CURRICLE CROFTER BURDOCK CALOMEI BOMBAZINE BENEFICE BAROUCHE BARK AND AGUE LACE EVERY PAGE LIKE SO MUCH SCRIMSHAW I PERSONALLY KEEP COPIES OF THE OXFORD COMPANION TO SHIPS AND THE SEA AND THE RECENTLY PUBLISHED WHAT JANE AUSTEN ATE AND CHARLES DICKENS KNEW BY DANIEL POOL CLOSE AT HAND WHEN READING MR O'BRIAN AT TIMES EXPLANATIONS ARE HELPFULLY IMBEDDED IN CONVERSATIONAL BACK AND FORTH STEPHEN DESCRIBES HIS SHIRT AS A CELICE WITH THE SALT AND WE SOON LEARN THAT THIS IS A PENITENTIAL GARMENT MADE OF THE HARSHEST CLOTH KNOWN TO MAN AND WORN NEXT TO THE SKIN BY SAINTS HERMITS AND THE MORE ANXIOUS SINNERS THE WINEDARK SEA IS FULL OF EXCITING SEA BATTLES DRAWN FROM YEARS OF RESEARCH BY MR O'BRIAN IN THE ROYAL NAVY ARCHIVES AT GREENWICH BUT THERE IS FAR MORE HERE THAN SAY CS FORESTER'S HORNBLOWER SERIES OR ALEXANDER KENT'S BOOKS NOT ONLY IN LITERARY CRAFTSMANSHIP BUT IN THE MASTERY OF COMPLEX RELATIONSHIPS DEEP PHILOSOPHICAL CONFLICT AND INTENSITY OF PASSION HE IS UNMATCHED THE SUBTLETY OF HIS PERSONALITIES AND THE GAUDY PARADE OF CHARACTERS ARE USED TO EXPLORE WAR ANTHROPOLOGY ENGINEERING BOTANY MEDICINE AND METAPHYSICS AND YET WEAVE ALL THIS COMPLEXITY INTO A GRAND AND CONTINUING FLOW OF LIFE THE READER LEARNS MUCH AS HE PROCEEDS ARE YOU CURIOUS ABOUT HOW SPEED WAS MEASURED IN THE DAYS OF SAIL THERE IS A VERY DETAILED ODDLY COMPELLING DESCRIPTION INVOLVING A SANDGLASS A LINE AND A LOG REEL OR HOW A SKULL FRACTURE WAS TREATED MATURIN TELLS US AS HE CUTS AWAY NOTING THE RAISING OF THE DISC OF BONE THE FLOW OF EXTRAVASATED BLOOD WE LEARN OF THE MOUTHWATERING TREATS LIKE PLUMDUFF SOUSED HOG'S FACE SEA PIE DOG'S BODY AND BOILED BABY A MIX OF SUET AND DOUGH BOILED IN SAILCLOTH THAT NOURISHED NELSON'S NAVY WE LEARN THAT UNLIKE THE ARMY'S ALL PRESENT AND ACCOUNTED FOR THE NAVY'S MUSTER WAS ALL PRESENT AND SOBER IF YOU PLEASE SIR WE LEARN HOW TO WEAR SHIP TO BATTEN DOWN THE HATCHES AND HOW TO TREAT SYPHILIS BARELY PRINTABLE AND SWORD THRUST CAUTERIZE SEW AND HOPE FOR THE BEST MR O'BRIAN ACCOMPLISHES IT ALL WITH SPARE ELEGANT PROSE THAT CAN BE QUITE LYRICAL WITH THE BREEZE STEADILY ON THE LARBOARD QUARTER THEY WENT EASILY ALONG UNDER SINGLEREEFED TOPSAILS SITTING IN THEIR LANTERNLIGHT SURROUNDED BY DARKNESS AND TALKING IN A DESULTORY AMIABLE FASHION BELL AFTER BELL WHILE THE WIND SANG IN THE RIGGING THE BLOCKS CREAKED RHYTHMICALLY AND THE RITUAL CRIES WERE REPEATED AT DUE INTERVALS THE WINEDARK SEA ENDS WITH JACK AND STEPHEN HOMEWARD BOUND WE CAN ANTICIPATE WITH MUCH PLEASURE THAT THE VOYAGE WILL DOUBTLESS BE FAR FROM UNEVENTFUL MR LEHMAN WAS SECRETARY OF THE NAVY DURING THE REAGAN ADMINISTRATION 9311030110 931103 ECONOMY CLINTON TO PROPOSE NAFTA BILL OFFERING TRADE RELIEF TO SOME US INDUSTRIES BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON PLANS TO SWEETEN HIS SALES PITCH FOR THE NORTH AMERICAN FREE TRADE AGREEMENT BY PROPOSING LEGISLATION TO HELP INDUSTRIES RANGING FROM WASHING MACHINE MANUFACTURERS TO BROOM MAKERS THE ADMINISTRATION CLEARLY HOPES THAT BY ADDING THESE PROPOSALS TO THE TRADE PACT IT CAN WOO UNDECIDED LAWMAKERS TO SIDE WITH THE PRESIDENT IN HIS UPHILL FIGHT FOR NAFTA BUT IT'S UNCLEAR WHETHER THE PROPOSALS WHICH MR CLINTON PLANS TO UNVEIL AS EARLY AS TODAY WILL PRODUCE ANY PRONAFTA VOTES YOU DO THIS MEMBER BY MEMBER SAID ROBERT RUBIN HEAD OF THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL IT'S A VERY TOUGH STRUGGLE THE US IS SEPARATELY NEGOTIATING WITH MEXICO OVER DIFFERENT PROVISIONS THAT WOULD EFFECTIVELY CHANGE TERMS IN NAFTA TO PROTECT US PRODUCERS OF SUGAR AND CITRUS FRUITS IF THE ADMINISTRATION CAN OBTAIN THOSE CHANGES WHICH WOULD LIMIT POTENTIAL MEXICAN EXPORTS OF SUGAR AND CITRUS PRODUCTS IT FIGURES IT COULD PICK UP MORE THAN A DOZEN VOTES IN THE HOUSE BUT SO FAR MEXICO IS HOLDING TIGHT THE NEGOTIATIONS ARE OVER MEXICO'S TRADE MINISTER JAIME SERRA PUCHE SAID LAST WEEK IF THE SUGAR ISSUE WORKS OUT THEN WE HAVE A FIGHTING CHANCE TO DRAMATICALLY ADD TO OUR POSITIVE VOTE COUNT SAID REP BILL RICHARDSON A NEW MEXICO DEMOCRAT WHO IS A LEADER OF THE PRONAFTA FORCES MR CLINTON CONTINUED HIS CAMPAIGN FOR NAFTA AT A WHITE HOUSE GATHERING WITH A HOST OF FORMER CABINET OFFICERS WHO URGED APPROVAL OF NAFTA MR CLINTON SAID THE PACT WAS A CHALLENGE FOR AMERICANS' ABILITY TO COMPETE THIS IS A DECISION WHICH WILL DEMONSTRATE WHETHER IN THIS DIFFICULT MOMENT WE STILL HAVE CONFIDENCE IN OURSELVES MR CLINTON SAID FORMER SECRETARY OF STATE HENRY KISSINGER SAID THE NAFTA VOTE COMES AT A CRUCIAL TIME IN THE POSTCOLD WAR PERIOD BECAUSE IT WILL AFFECT FOREIGN POLICY FOR THE REST OF THE DECADE JAMES BAKER ANOTHER FORMER SECRETARY OF STATE SAID THAT AMERICANS SHOULD REALIZE THEY HAVE NOTHING TO FEAR FROM NAFTA HE SAID THE BIPARTISAN SUPPORT MUST EXPOSE THE FACTFUDGING THE FEARMONGERING THE PROPHETS OF PROTECTIONISM WHO ARE PLAYING ON THE DOUBTS OF THE AMERICAN PEOPLE THE ADMINISTRATION ALSO HAD ON HAND SEVEN NOBELWINNING ECONOMISTS WHO BACKED NAFTA EVEN THROUGH THREE OF THEM RECENTLY SIGNED A LETTER ARGUING THAT THE ADMINISTRATION'S TRADE POLICY TOWARD JAPAN WAS MISGUIDED AND AMOUNTED TO MANAGED TRADE TODAY THE ADMINISTRATION EXPECTS TO GAIN THE SUPPORT OF THREE PREVIOUSLY UNDECIDED HOUSE LAWMAKERS INCLUDING DEMOCRATIC REPS EDDIE BERNICE JOHNSON OF TEXAS AND RAY THORNTON THE ARKANSAN WHO HAD DEFIED PRESIDENT CLINTON ON THIS YEAR'S DEFICITREDUCTION VOTE THE PRESIDENT'S LEGISLATIVE PROPOSALS HAVE BEEN WORKED OUT IN ARDUOUS NEGOTIATIONS BETWEEN MEMBERS OF THE ADMINISTRATION THE HOUSE WAYS AND MEANS COMMITTEE AND THE SENATE FINANCE COMMITTEE THEY WILL INCLUDE BOTH LEGISLATION THAT CHANGES US LAW SO IT IS CONSISTENT WITH NAFTA AND AN ACCOMPANYING REPORT THAT SPELLS OUT ADMINISTRATION PROMISES THE LEGISLATIVE PACKAGE GENERALLY CALLS FOR A SERIES OF REPORTS TO MONITOR THE EFFECTS OF NAFTA ON THE US ECONOMY AND VARIOUS INDUSTRIES AT THE REQUEST OF SEN BILL BRADLEY D NJ A LEADER OF THE NAFTA SUPPORTERS THE ADMINISTRATION PLANS TO HAVE THE CONGRESSIONAL BUDGET OFFICE REPORT EVERY THREE YEARS ON NAFTA'S ECONOMIC EFFECTS INCLUDING AVERAGE WAGES AND JOB LOSSES THE US TRADE REPRESENTATIVE'S OFFICE WOULD ALSO HAVE TO REPORT ANNUALLY ON NAFTA'S EFFECT ON AUTO TRADE THAT PROVISION WAS ADDED BY SEN WILLIAM ROTH R DEL WHO HASN'T STAKED OUT A NAFTA POSITION IN ADDITION THE US WOULD MONITOR NAFTA'S EFFECT ON THE TINY BROOMCORN BROOM INDUSTRY WHICH HAS BEEN PROTECTED FROM COMPETITION BY HIGH TARIFFS THE INDUSTRY HAS A NUMBER OF SUPPORTERS INCLUDING LAWMAKERS FROM ILLINOIS AND REPUBLICAN SEN ROBERT PACKWOOD OF OREGON SEN CHARLES GRASSLEY AND REP FRED GRANDY TWO IOWA REPUBLICANS WON ADMINISTRATION BACKING FOR A PROVISION THAT WOULD MAKE IT EASIER FOR ONE OF THE STATE'S BIG EMPLOYERS MAYTAG CORP TO CONVINCE THE US INTERNATIONAL TRADE COMMISSION THAT IT WAS BEING HARMED BY IMPORTS FROM MEXICO OTHER BIG APPLIANCE MANUFACTURERS SUCH AS GENERAL ELECTRIC CO HAVE FACILITIES IN MEXICO AND MAYTAG FEARS IT MAY BE HURT UNDER NAFTA UNDER THE PROVISION THE ITC MAY IGNORE COMPANIES IN THE US THAT HAVE BENEFITED FROM IMPORTS WHEN IT CONSIDERS WHETHER DOMESTIC MAJORAPPLIANCE COMPANIES HAVE SUFFERED SERIOUS INJURY THAT COULD WARRANT THE REINSTATEMENT OF TARIFFS UNDER NAFTA IN A SIMILAR VEIN THE LEGISLATION WOULD REQUIRE THE CUSTOMS SERVICE TO MONITOR IMPORTS OF COLOR TELEVISION SETS FROM NAFTA COUNTRIES TO ENSURE THAT THE PICTURE TUBES WEREN'T PRODUCED OUTSIDE NORTH AMERICA ZENITH ELECTRONICS CORP GLENVIEW ILL IS DEPENDING ON NAFTA TO CREATE A TRADING BLOC THAT WILL DISCOURAGE IMPORTS OF COLOR PICTURE TUBES FROM ASIA THROUGH HIGH TARIFFS THEN THERE IS SOME POLITICAL PORK REP JJ PICKLE D TEXAS INSERTED A PROVISION AUTHORIZING 10 MILLION TO BUILD A CENTER FOR THE STUDY OF TRADE IN THE WESTERN HEMISPHERE DUBBED THE PICKLE CENTER IN TEXAS REP PICKLE CALLED THE TEXAS LOCATION LOGICAL BECAUSE OF THE EXPANSIVE TEXASMEXICO BORDER THE ADMINISTRATION HAD A HARD TIME ARGUING AGAINST THE PROVISION CONGRESSIONAL STAFFERS SAID BECAUSE TREASURY SECRETARY LLOYD BENTSEN A TEXAN HAD BACKED THE CENTER WHEN HE HEADED THE SENATE FINANCE COMMITTEE JEFF FAUX PRESIDENT OF THE ECONOMIC POLICY INSTITUTE AN ANTINAFTA THINKTANK IN WASHINGTON SAID HE DOUBTED THAT THE PROVISIONS WOULD MAKE MUCH DIFFERENCE IN THE NAFTA VOTE I DON'T THINK THERE'S ENOUGH COOKIES IN THAT JAR TO PASS THIS THING YET HE SAID BUT MR RUBIN THE WHITE HOUSE ECONOMIC ADVISER SAID THAT THE MOMENTUM IS ON OUR SIDE WITH ABOUT 40 DEMOCRATS STILL UNDECIDED NAFTA BACKERS SAY THEY HAVE FIRM SUPPORT FROM ABOUT 75 DEMOCRATS AND 100 REPUBLICANS LEAVING THEM ABOUT 40 VOTES SHORT OF A MAJORITY THE ANTINAFTA FORCES CLAIM TO HAVE ABOUT 210 VOTES REP RICHARDSON CALLED THE OPPOSITION'S NUMBER VERY SOFT ADDING I THINK THEY HAVE PEAKED RICK WARTZMAN CONTRIBUTED TO THIS ARTICLE 9311030109 931103 LEGAL BEAT RECENT RULINGS MAY THREATEN HEALTH PLANS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL ARRANGEMENTS BY HEALTH INSURERS TO OFFER PATIENTS DISCOUNTS ARE BEING THREATENED BY RECENT COURT DECISIONS AND STATE LAWS FORBIDDING INSURERS FROM MAKING EXCLUSIVE DEALS WITH INDIVIDUAL DOCTORS AND HOSPITALS PREFERREDPROVIDER ORGANIZATIONS HAVE BECOME A FAVORITE COSTCUTTING TOOL OF EMPLOYERS AND THEIR INSURERS WHO PROMISE DOCTORS A BIG VOLUME OF PATIENTS IN EXCHANGE FOR DISCOUNTED PRICES BUT CRITICS ARGUE THAT MANY PPOS ARE ANTICOMPETITIVE BECAUSE THEY LOCK OUT PHYSICIANS WILLING TO OFFER THE SAME LOW PRICES AND THEY SAY PATIENTS SUFFER BECAUSE THEIR CHOICE OF DOCTORS IS LIMITED EIGHT STATES INCLUDING ILLINOIS AND VIRGINIA HAVE PASSED LAWS STOPPING INSURERS FROM EXCLUDING PHYSICIANS AND HOSPITALS WILLING TO MEET THE CONDITIONS OF PPOS AND ABOUT SIX OTHER STATES ARE CONSIDERING SIMILAR REGULATIONS EMPLOYERS AND INSURERS HAD HOPED TO SIDESTEP THE STATE LAWS BECAUSE CONGRESS HAS EXEMPTED EMPLOYEEBENEFIT PLANS FROM COMPLYING WITH MANY STATE REGULATIONS BUT THEIR HOPES HAVE BEEN DASHED BY TWO IMPORTANT RULINGS THIS YEAR IN WHICH COURTS HAVE SAID THE FEDERAL EXEMPTION DOESN'T APPLY THE DECISIONS IF ADOPTED ELSEWHERE COULD RAISE MEDICAL COSTS FOR THE MORE THAN 50 MILLION AMERICANS WHO PARTICIPATE IN PPOS THAT MIGHT NOT BE THE CASE IF THE CLINTON HEALTH PROPOSAL IS ADOPTED BY CONGRESS THE MEDICAL ALLIANCES IT CALLS FOR WOULD ALLOW HEALTH PLANS TO LIMIT THE NUMBER OF DOCTORS AND HOSPITALS PARTICIPATING UNLIKE THE FEDERAL EMPLOYEEBENEFITS LAW THE CLINTON PLAN IS EXPECTED TO SUPERSEDE THESE STATE LAWS HEALTH LAWYERS SAY THE LAWS ARE ANTICONSUMER AND THEY'RE ANTICOMPETITIVE SAYS REGINA PALMER ASSISTANT GENERAL COUNSEL OF THE HEALTH INSURANCE ASSOCIATION OF AMERICA WHEN YOU HAVE TO TAKE EVERYBODY YOU WIPE OUT THE POSSIBILITY OF BEING ABLE TO PROMISE PEOPLE A CERTAIN VOLUME TO GET THEM INTO YOUR NETWORK IN A JUNE DECISION BY THE FOURTH US CIRCUIT COURT OF APPEALS A RICHMOND VA HOSPITAL WON THE RIGHT TO PARTICIPATE IN A PPO MANAGED BY AETNA HEALTH MANAGEMENT A UNIT OF AETNA LIFE & CASUALTY CO AETNA HAD CHOSEN TO EXCLUDE THE FACILITY STUART CIRCLE HOSPITAL EVEN THOUGH IT WAS WILLING TO MEET THE PPO'S TERMS INSTEAD AETNA CONTRACTED WITH SIX OTHER AREA HOSPITALS THAT WERE ALREADY AFFILIATED WITH AN AETNA HEALTHMAINTENANCE ORGANIZATION IN RICHMOND IN CONTRAST TO PPOS WHICH REIMBURSE DOCTORS FOR EACH PATIENT'S CARE INDIVIDUALLY HMOS GENERALLY PAY DOCTORS A FLAT FEE FOR TREATING ALL THEIR MEMBERS THE APPEALS COURT ACKNOWLEDGED THAT ALLOWING PPOS TO EXCLUDE HOSPITALS MIGHT LOWER HEALTHINSURANCE COSTS BUT IT SAID THAT IN ENACTING PPO REGULATIONS THE VIRGINIA LEGISLATURE HAD DECIDED THAT GIVING PATIENTS A WIDE CHOICE OF DOCTORS AND HOSPITALS WAS MORE IMPORTANT THAN REDUCING INSURANCE PREMIUMS THE WISDOM OF THIS DECISION IS A CONCERN OF THE LEGISLATURE NOT THE JUDICIARY THE COURT SAID AETNA HAS APPEALED THE CASE TO THE US SUPREME COURT THE SUPREME COURT OF VIRGINIA REACHED A SIMILAR CONCLUSION IN A SEPARATE CASE EARLIER THIS YEAR INVOLVING A PPO SET UP BY BLUE CROSS & BLUE SHIELD OF VIRGINIA THE COURT NOTED THAT IN ORDER FOR A PPO TO BE SUCCESSFUL THE NETWORK OF PROVIDERS MUST BE LIMITED NONETHELESS IT CONCLUDED THAT THE FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT DOESN'T PREVENT STATES FROM REGULATING PPOS THE COURT DECISIONS PRESENT A THREAT OF RENDERING THE WHOLE CONCEPT OF PPOS UNWORKABLE SAYS WILLIAM KILBERG A WASHINGTON LAWYER WITH LAW FIRM GIBSON DUNN & CRUTCHER WHO REPRESENTED AETNA IN THE STUART CIRCLE HOSPITAL CASE DEFENDERS OF THE PPO LAWS SAY THE REGULATIONS ARE NECESSARY TO PROTECT CONSUMERS EMPLOYERS RATHER THAN INDIVIDUALS USUALLY NEGOTIATE THE TERMS OF HEALTHINSURANCE PLANS THE PURPOSE OF THESE LAWS IS TO PREVENT POLICYHOLDERS FROM DISCOVERING THAT THE BENEFITS THEY'VE PAID FOR ARE UNREASONABLY RESTRICTED SAYS PHILIP O'NEILL OF WASHINGTON LAW FIRM KECK MAHIN & CATE WHO REPRESENTED STUART CIRCLE PPOS ALLOW PATIENTS TO GO TO DOCTORS OUTSIDE THE NETWORK IF THEY'RE WILLING TO PAY HIGHER FEES BUT REGULATION IS STILL NECESSARY MR O'NEILL SAYS BECAUSE THE PENALTY FOR GOING OUTSIDE THE NETWORK CAN BE QUITE SUBSTANTIAL MR O'NEILL ALSO NOTES THAT MOST STATES' LAWS ALLOW FOR LIMITED DISCRIMINATION BY PPOS IF FOR EXAMPLE THEY WANT TO EXCLUDE PHYSICIANS WITH HISTORIES OF POOR MEDICAL CARE OR HOSPITALS THAT ARE GEOGRAPHICALLY INCONVENIENT NEVERTHELESS MANY HEALTHCARE SPECIALISTS ARGUE THAT THE STATE LAWS PUT TOO MUCH OF A DAMPER ON COMPETITION EARLIER THIS YEAR THE STAFF OF THE FEDERAL TRADE COMMISSION ISSUED AN ADVISORY OPINION TO THE ATTORNEY GENERAL OF MONTANA URGING THE STATE TO GET RID OF ITS LAW WHICH WAS UP FOR RENEWAL THE AGENCY SAID IT FEARED THE LAW MAY LIMIT FIRMS' ABILITY TO REDUCE THE COST OF DELIVERING HEALTH CARE WITHOUT PROVIDING ANY SUBSTANTIAL PUBLIC BENEFIT THE FTC WHOSE MISSION IS PARTLY TO ENCOURAGE COMPETITION IN LICENSED PROFESSIONS SUCH AS MEDICINE HAS ISSUED SIMILAR LETTERS TO OFFICIALS IN NEVADA PENNSYLVANIA NEW HAMPSHIRE AND CALIFORNIA ONE OF BAKER & MCKENZIE'S TOP BILLING PARTNERS HAS RESIGNED IN THE WAKE OF TWO PENDING SEXUALHARASSMENT COMPLAINTS FILED AGAINST HIM AND THE FIRM TWO PENDING SUITS ACCUSE INTELLECTUALPROPERTY SPECIALIST MARTIN GREENSTEIN OF ENGAGING IN A PATTERN OF VERBAL HARASSMENT AND UNWANTED PHYSICAL ADVANCES AND CONTACT THE SUITS ALSO ACCUSE BAKER & MCKENZIE OF TAKING NO ACTION TO STOP THE ALLEGED HARASSMENT THE RESIGNATION WAS FIRST REPORTED IN THE RECORDER A SAN FRANCISCO LEGAL NEWSPAPER MR GREENSTEIN WHO WAS BASED IN THE FIRM'S PALO ALTO CALIF OFFICE COULDN'T BE REACHED FOR COMMENT NEITHER COULD ROBERT YAHNG BAKER & MCKENZIE'S MANAGING PARTNER IN ITS SAN FRANCISCO OFFICE BAKER & MCKENZIE IS ONE OF THE WORLD'S LARGEST AND HIGHESTGROSSING LAW FIRMS ACCORDING TO MR GREENSTEIN'S LAWYER THOMAS GOSSELIN OF SAN FRANCISCO MR GREENSTEIN LEFT THE FIRM FOR PERSONAL AND FINANCIAL REASONS UNRELATED TO THE LAWSUITS HE SAID HIS CLIENT DENIES ANY WRONGDOING HE'S SET UP HIS OFFICE IN SAN JOSE SAID MR GOSSELIN HE BELIVES HE CAN PUT TOGETHER A MORE PROSPEROUS PRACTICE THAN HE COULD AT BAKER & MCKENZIE ONE SUIT AGAINST MR GREENSTEIN AND THE FIRM WAS FILED IN MAY 1992 BY A FORMER SECRETARY RENA WEEKS AND THE OTHER WAS FILED LAST MARCH BY A FORMER ASSOCIATE MARY ROSSMAN SETTLEMENT NEGOTIATIONS BETWEEN BAKER & MCKENZIE AND THE TWO PLAINTIFFS UNDER WAY SINCE LAST AUGUST RECENTLY BROKE OFF ACCORDING TO PHILIP KAY THE SAN FRANCISCO LAWYER FOR BOTH WOMEN HE SAID HE PRESENTED HIS CASE TO A FOCUS GROUP OF LIKELY SAN FRANCISCO JURORS LAST SEPTEMBER AND RECEIVED AN AVERAGE VERDICT FROM TWO MOCK 12MEMBER PANELS IN THE LOW EIGHT FIGURES IN SUBSEQUENT INTERVIEWS JURORS INDICATED THEY WOULD HAVE AWARDED SIGNIFICANTLY MORE HAD THEY KNOWN MR GREENSTEIN WAS STILL A PARTNER OF THE FIRM MR KAY SAID MR GREENSTEIN LEFT BAKER & MCKENZIE A WEEK AFTER HE TOLD THE FIRM ABOUT THE RESULTS OF THE MOCK TRIALS MR GREENSTEIN'S LAWYER SAID HE WASN'T AWARE OF THE MOCK TRIAL AND DOUBTED THE RESULTS ANY REASONABLE JURY IN CALIFORNIA WOULDN'T AWARD ANYWHERE NEAR THAT AMOUNT SAID MR GOSSELIN THE FIRST OF THE TWO SUITS THAT OF MS WEEKS IS SCHEDULED FOR TRIAL IN EARLY DECEMBER MILO GEYELIN CONTRIBUTED TO THIS ARTICLE 9311030108 931103 MIDSIZE COMPANIES NO LONGER ESCAPE ACTIVISTS' IRE BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORE MIDSIZE COMPANIES ARE STARTING TO FEEL THE HEAT FROM SHAREHOLDER ACTIVISTS INCREASINGLY PENSION FUNDS AND OTHER BIG INVESTORS AROUND THE COUNTRY ARE FLEXING THEIR MUSCLES AT SMALLER OFFTHEBEATENTRACK COMPANIES RATHER THAN THE HEADLINEGRABBERS OF YORE IN LEBANON TENN CRACKER BARREL OLD COUNTRY STORE INC FACES A SPIRITED CHALLENGE LED BY NEW YORK CITY'S RETIREMENT SYSTEM WHICH IS ASKING THE COMPANY TO ADOPT A POLICY PROHIBITING DISCRIMINATION AGAINST HOMOSEXUALS IN MECHANICSBURG PA ACTIVISTS ARE TARGETING CONTINENTAL MEDICAL SYSTEMS INC PRODDING THE REHABHOSPITAL CHAIN'S BOARD NOT TO REJIGGER CHAIRMAN ROCCO ORTENZIO'S NOWWORTHLESS STOCK OPTIONS TO MAKE THEM REGAIN VALUE ALSO IN THE NEWS THIS WEEK A PLANNED DILLON READ & CO FUND TO INVEST IN CORPORATE TURNAROUNDS HAS LURED 400 MILLION OF PLEDGES FROM BIG INVESTORS INCLUDING THE PENSION FUNDS OF CALIFORNIA NEW YORK STATE AND GENERAL MOTORS CORP THE NEW FUND WILL CONSIDER INVESTING IN COMPANIES WITH MARKET VALUES AS SMALL AS 1 BILLION TAKING A STAKE OF PERHAPS 5 OR 10 AND SEEKING A BOARD SEAT TO HELP GET A TURNAROUND GOING HELPING THIS PROCESS ALONG IS LAST YEAR'S SECURITIES AND EXCHANGE COMMISSION DECISION TO SCUTTLE A WEB OF COSTLY BUREAUCRATIC BARRIERS TO SHAREHOLDER COMMUNICATION NOWADAYS HOLDERS CAN EASILY ORCHESTRATE LETTERS AND MISSIONS BEFORE SUCH AN EFFORT MIGHT HAVE COST 50000 A SHOT GM DID RAISE SOME EYEBROWS WITH THIS WEEK'S DISCLOSURE THAT IT IS EXPECTED TO ADD ITS 100 MILLION TO CALIFORNIA'S 125 MILLION AND NEW YORK'S TENTATIVE 100 MILLION IN DILLON READ'S TURNAROUND FUND OF 600 MILLION OR SO NOT ONLY DOES GM HAVE ITS OWN PROBLEMS BUT GM HASN'T BEEN KNOWN AS A CORPORATE AGITATOR BUT THIS IS RELATIONSHIP INVESTING A SOOTHING TERM COINED BY PENSIONFUND ACTIVISTS THE GOAL HOLD THE HANDS OF UNDERPERFORMING MANAGERS DON'T YELL AT THEM IT HAS BEEN A HARD SELL BUT BACKERS HOPE THE NEW COMMITMENTS WILL GIVE THE DILLON READ FUND THE BOOST IT NEEDS THE FUND IS A WAY TO GET ABOVEAVERAGE RETURNS SAYS GORDON BINNS PRESIDENT OF GM INVESTMENT MANAGEMENT CORP WHO DECLINED TO CONFIRM OR DENY GM'S 100 MILLION COMMITMENT I DON'T VIEW IT AS REVOLUTIONARY IT IS DIFFERENT SUCH AN INVESTMENT FITS INTO HIS OVERALL STRATEGY OF WIDELY DIVERSIFYING HE NOTES THE GM PENSION PLAN INCLUDES CONSIDERABLE INVESTMENT IN VENTURECAPITAL PROJECTS REAL ESTATE OIL AND GAS DEALS CORPORATE RESTRUCTURINGS LEVERAGEDBUYOUT FUNDS AND PRIVATEPLACEMENT DEBT ISSUES SOME OTHER CORPORATE PENSIONPLAN MANAGERS ARE SKEPTICAL JOHN CARROLL WHO MANAGES GTE CORP'S PENSION FUND SAYS HE TURNED DOWN DILLON READ ENTREATIES TO INVEST I REALLY HAVE MY DOUBTS ABOUT MINORITY POSITIONS BEING EFFECTIVE HE SAYS HE ALSO RAISES CONCERNS THAT THE FIVE FUND PARTNERS WHO ARE TO TAKE SEATS ON THE LAGGARDS' BOARDS LACK EXPERIENCE WORKING AS A TEAM WHEN YOU HAVE THIS MANY CHIEFS SITTING AROUND YOU DON'T KNOW HOW EASILY THEY'RE GOING TO REACH COMMON DECISIONS HE SAYS OTHER PENSIONPLAN MANAGERS HAVE TOLD THE FUND THAT THEY'RE AFRAID THE FIVE MANAGERS ARE TOO BUSY TO MAKE THE FUND A SUCCESS TWO PEOPLE SAID IN ANY CASE INVESTOR ACTIVISTS HAVE SHOWN THAT THEIR REPERTOIRE IS MUCH BROADER THAN MANY CRITICS ORIGINALLY BELIEVED JUST ASK BOSSES AT CONTINENTAL MEDICAL AND CRACKER BARREL IN BOTH CASES ACTIVISTS ARE SENDING OUT HUNDREDS OF LETTERS URGING OTHER SHAREHOLDERS TO OPPOSE THE COMPANIES FOR THE CRACKER BARREL CAMPAIGN FOR INSTANCE TWO TOP NEW YORK CITY FUND EXECUTIVES USED COMPUTERIZED DATABASES TO IDENTIFY THE LARGEST SHAREHOLDERS DISPATCHED 300 LETTERS AND NOW ARE FOLLOWING UP WITH CALLS THIS MAY SOUND EASY BEFORE THE SEC RULE CHANGE THIS COULD HAVE BEEN A 50000 PROPOSITION INCLUDING LEGAL FEES BACK THEN ANY COMMUNICATION INVOLVING MORE THAN 10 SHAREHOLDERS WAS SUBJECT TO REGULATORY OVERSIGHT THE NEW YORK FUND WOULD HAVE HAD TO FILL OUT AN ELABORATE SEC FORM GAIN SEC APPROVAL FOR IT AND THEN SEND THE LETTER TO EVERY SINGLE SHAREHOLDER I FEEL A LOT MORE COMFORTABLE NOW CALLING OTHER BIG PENSION FUNDS AND INVESTMENT FIRMS ASKING THEM ARE YOU GOING TO VOTE WITH US' SAYS SUE ELLEN DODELL GENERAL COUNSEL FOR THE NEW YORK CITY RETIREMENT FUND WISCONSIN OFFICIALS ARE GETTING TO BE OLD HANDS AT THE NEW RULE THE CONTINENTAL MEDICAL CAMPAIGN IS ITS SEVENTH IN THE PAST EIGHT MONTHS THEY SAY THEY HAVE TWO CLEARCUT VICTORIES THEY WON THE RIGHT TO REQUEST THAT THE BOARD PUT AN ANTITAKEOVER STRATEGY TO A SHAREHOLDER VOTE AT ALLERGAN INC AN IRVINE CALIF EYECAREPRODUCTS COMPANY AND THEY SUCCESSFULLY OPPOSED THE REPRICING OF UNDERWATER STOCK OPTIONS AT AIR & WATER TECHNOLOGIES CORP OF BRANCHBURG NJ IN A THIRD CASE INVOLVING DAMON CORP NEEDHAM HEIGHTS MASS THEY OPPOSED A TAKEOVER BID ON THE GROUNDS THAT IT WAS BELOW FAIR VALUE AND AS THEY PROTESTED A HIGHER BIDDER EMERGED AT CONTINENTAL MEDICAL WISCONSIN'S NEWEST EFFORT ISN'T WINNING RAVE REVIEWS THE REPRICING OF 500000 OPTIONS FOR MR ORTENZIO WHO IS BOTH CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS BEEN RECOMMENDED BY THREE OUTSIDE DIRECTORS INCLUDING TWO VENTURE CAPITALISTS IN THE COMPANY SHAREHOLDERS PROBABLY SHOULD MAKE THEIR THOUGHTS KNOWN MORE THAN THEY HAVE IN THE PAST SAYS CONTINENTAL BOARD MEMBER WILLIAM GOLDSTEIN WHOSE LAW FIRM SERVES AS CONTINENTAL'S OUTSIDE COUNSEL YET HE SAYS TALKING TO INDIVIDUAL SHAREHOLDERS GETS A LITTLE BURDENSOME FOR COMPANIES LACKING BIG INVESTORRELATIONS STAFFS MR ORTENZIO HE SAYS ALREADY WORKS 18 TO 20 HOURS A DAY DAVID NATION CONTINENTAL'S GENERAL COUNSEL IS MORE BLUNT HE CONTENDS THAT MANY PENSION FUNDS LACK THE EXPERTISE TO BECOME VALUABLE CONTRIBUTORS IN DAYTODAY BUSINESS OPERATIONS YET HE LAMENTS IF THEY ARE SUCCESSFUL IN SOLICITING A VOTE AGAINST THIS MEASURE THEY WILL HAVE FAR MORE INFLUENCE IN THE FUTURE 9311030107 931103 LAWYERS SAY QVC MOVES COULD UPSET VIACOM PACT NEW YORK LAWYERS FOR PARAMOUNT COMMUNICATIONS INC TOLD LAWYERS FOR QVC NETWORK INC THAT A SERIES OF BIDDING GROUND RULES SOUGHT BY QVC WOULD REQUIRE PARAMOUNT TO CANCEL ITS FRIENDLY MERGER AGREEMENT WITH VIACOM INC AT A BRIEF MEETING MONDAY QVC ATTORNEY MARTIN LIPTON PRESENTED A LIST OF PROPOSED BIDDING PROCEDURES AIMED AT GAINING A LEVEL PLAYING FIELD SO THAT QVC COULD SUBMIT ITS BEST BID FOR PARAMOUNT AGAINST VIACOM'S BEST BID BUT LAWYERS FOR PARAMOUNT LED BY RICHARD BEATTIE OF SIMPSON THACHER & BARTLETT RESPONDED THAT SETTING UP SUCH BIDDING PROCEDURES WOULD REQUIRE PARAMOUNT TO ABROGATE THE MERGER PACT WITH ITS OWN CHOSEN PARTNER VIACOM THE MEETING WAS REGARDED BY SOME TRADERS AS FURTHER SPARRING IN ADVANCE OF A COURT DATE NOV 16 ON QVC'S REQUEST FOR AN INJUNCTION BLOCKING THE PARAMOUNTVIACOM MERGER BOTH VIACOM AND QVC ARE OFFERING 10 BILLION OR ABOUT 80 A SHARE FOR PARAMOUNT 9311030106 931103 MARKETING & MEDIA STREISAND TO TAKE THE STAGE NEW YEAR'S AT MGM GRAND LAS VEGAS BARBRA STREISAND FORMALLY AGREED TO STAGE TWO NEW YEAR'S CONCERTS AT MGM GRAND INC'S NEW 1 BILLION HOTELCASINO OPERATION AND THEME PARK THE COMPANY SAID AS REPORTED IN THE WALL STREET JOURNAL OCT 4 MS STREISAND WILL APPEAR DEC 31 AND JAN 1 AT THE 15000SEAT MGM GRAND GARDEN LESS THAN TWO WEEKS AFTER THE SCHEDULED OPENING OF THE MGM GRAND RESORT MS STREISAND RARELY HAS PERFORMED IN PUBLIC SINCE THE LATE 1960S AND THE MGM GRAND APPEARANCES WOULD BE HER FIRST NONCHARITY PERFORMANCES IN SEVERAL YEARS COMPANY OFFICIALS WEREN'T REACHABLE FOR COMMENT BUT PEOPLE FAMILIAR WITH THE TALKS SAID MS STREISAND COULD GARNER MORE THAN 20 MILLION IT ISN'T CLEAR HOW MUCH MGM GRAND WILL PAY OUT OF POCKET FOR THE SHOWS AND THE AGREEMENT INCLUDES PROVISIONS FOR PAYPERVIEW PROCEEDS TICKET SALES AND OTHER FACTORS 9311030105 931103 UAL LABOR TALKS START TO SHOW SIGNS OF STRAIN CHICAGO WITH A DEADLINE FAST CLOSING IN THE LABORCONCESSION NEGOTIATIONS AT UAL CORP SHOWED THEIR FIRST SIGNS OF STRAIN AS LEADERS OF THE PILOTS UNION AT UNITED AIRLINES LEFT THE MEETINGS IN NEW YORK THE PILOTS UNION STRESSED THAT ITS NEGOTIATING TEAM WORKING WITH UNITED'S MACHINISTS UNION IS STILL TRYING TO STRIKE A DEAL TO ACQUIRE A MAJORITY STAKE IN UAL FOR A PACKAGE OF WAGE BENEFIT AND WORKRULE CONCESSIONS TOTALING SOME 4 BILLION THE PILOTS UNION HAD HOPED TO REACH AN AGREEMENT WITH UAL MANAGEMENT FOR THE UNION'S LEADERSHIP THE MASTER EXECUTIVE COUNCIL TO APPROVE THIS PAST WEEKEND BUT TALKS HAVE BEEN BOGGED DOWN IN DETAILS OVER SUCH TOPICS AS UAL'S PROPOSAL TO CREATE A SEPARATE LOWERCOST AIRLINE ACCORDING TO INDIVIDUALS INVOLVED IN THE NEGOTIATIONS AND THE OVERALL VALUE OF THE PROPOSED BUYOUT TRANSACTION THE UNION COALITION IS IN A TIME CRUNCH THE BUYOUT ATTEMPT HAS AN UNOFFICIAL DEADLINE OF NOV 13 THE CLOSING DATE OF A PROPOSED SALE OF 15 UNITED FLIGHT KITCHENS WHICH EMPLOY MEMBERS OF THE MACHINISTS' UNION THE UNIONS HAVE BEEN WORKING TO PROTECT THE JOBS OF THE FLIGHTKITCHEN WORKERS BUT THE MACHINISTS MAY NEED AT LEAST A WEEK FOR UNION MEMBERS TO RATIFY ANY PROPOSAL CLEARLY THE NEXT DAY OR TWO IS CRUCIAL SAID A SPOKESMAN FOR THE UNION COALITION 9311030104 931103 COMPUTERS YOUR PET IGUANA SWALLOWED A STAPLE COMPUTERIZED HELP DESK WILL TRY TO HELP BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL A FRANTIC WOMAN RECENTLY CALLED BLACK & DECKER CORP THE HAND TOOL MAKER IN TOWSON MD TO ASK WHAT ARE STAPLES MADE OF HER PET IGUANA HAD SWALLOWED ONE AND IF IT CONTAINED LEAD HER VETERINARIAN WOULD OPERATE ONCE SUCH A QUESTION WOULD HAVE REQUIRED A CONSUMERSERVICE REPRESENTATIVE TO SEARCH THROUGH PRODUCT MANUALS OR CONSULT AN ENGINEER BUT BLACK & DECKER HAD JUST INSTALLED COMPUTER SOFTWARE FOR ITS HELP DESK THE STAPLES WERE MADE OF STEEL THE COMPUTER SAID AND THE IGUANA AVOIDED THE SCALPEL THE COMPUTER IS A WAY TO GET ALL THE INFORMATION WE HAVE IN PEOPLE'S HEADS AND IN CATALOGS AND ON STICKY NOTES TOGETHER IN ONE PLACE SAYS KATHLEEN FRAZER BLACK & DECKER'S CONSUMERSERVICE MANAGER A GROWING NUMBER OF CONSUMERGOODS COMPANIES ARE COMPUTERIZING THEIR HELP DESKS BY COLLECTING INFORMATION AND TROUBLESHOOTING GUIDELINES ABOUT PRODUCTS AND STORING THEM IN COMPUTER DATABASES PEOPLE LIKE TO SEE A COMPANY THAT IS WILLING TO PUT ITS PHONE NUMBER ON A PRODUCT SAYS WAYNE CHARNESS VICE PRESIDENT FOR CORPORATE COMMUNICATIONS AT HASBRO INC THE PAWTUCKET RI TOYMAKER THAT COMPUTERIZED ITS HELP DESK THREE YEARS AGO AND PROVIDED AN 800NUMBER FOR CONSUMERS IT DIFFERENTIATES US FROM SOME OVERSEAS COMPANIES ONCE THE PROVINCE OF HIGHTECH COMPANIES TRYING TO EXPLAIN HOW TO USE THEIR COMPLICATED PRODUCTS HELPDESK SOFTWARE IS SPREADING TO A WIDE RANGE OF COMPANIES HELP DESKS ALSO KNOWN AS CUSTOMERSUPPORT OPERATIONS CONSIST OF A STAFF OF PEOPLE WHO HELP CALLERS WORK OUT PROBLEMS WITH PRODUCTS OR SERVICES THEY ALSO GIVE PROSPECTIVE CUSTOMERS INFORMATION ON NEW PRODUCTS COMPANIES LIKE HASBRO AND BLACK & DECKER ARE USING THE SOFTWARE TO CUT SERVICE COSTS AND TO AVOID SENDING REPLACEMENT PARTS WHEN THEY AREN'T NECESSARY AT SHAWMUT NATIONAL CORP IN HARTFORD CONN THE HUMAN RESOURCES DEPARTMENT IS ADAPTING HELPDESK SOFTWARE TO HELP ADDRESS EMPLOYEE QUERIES ABOUT BENEFITS SUPPORT AUTOMATION HAS BECOME ONE OF THE HOT AREAS OF COMPUTING MARKETRESEARCHER DATAQUEST SAYS HELPDESK SOFTWARE WAS A 105 MILLION MARKET IN 1991 AND WILL GROW TO A 250 MILLION MARKET BY 1995 THOSE NUMBERS EXCLUDE CUSTOMDESIGNED SUPPORTAUTOMATION PACKAGES COMPANIES HELPING CUSTOMERS REPAIRMEN OR EMPLOYEES BY PHONE ARE USING TECHNOLOGY AS MUCH AS POSSIBLE SAYS BOB JOHNSON WHO FOLLOWS SERVICE AND SUPPORT FROM DATAQUEST'S FRAMINGHAM MASS OFFICE THOSE THAT DON'T RISK BEING NONCOMPETITIVE FROM A COST STANDPOINT AND A RESPONSIVENESS STANDPOINT COMPUTER HARDWARE AND SOFTWARE COMPANIES THEMSELVES HAVE LED THE WAY IN APPLYING THE TECHNOLOGY SINCE THE MID1980S DATAQUEST CALCULATES THAT CUSTOMERSUPPORT CALLS COST SOFTWARE COMPANIES BETWEEN 21 AND 35 EACH THE SOFTWARE FOR COMPUTERIZING HELP DESKS CAN COST 10000 TO 100000 MANY CORPORATECOMPUTER DEPARTMENTS HAVE ESTABLISHED INTERNAL HELP DESKS FOR EMPLOYEES TO CALL WHEN A COMPUTER CRASHES OR THEIR SOFTWARE BALKS ZIFF COMMUNICATIONS CO A COMPUTERMAGAZINE PUBLISHER SELLS SUPPORT ON SITE A CDROM AND ONLINE SERVICE THAT COMPILES USER MANUALS AND TECHNICAL NOTES FROM A DOZEN SOFTWARE COMPANIES INCLUDING ARCHRIVALS MICROSOFT CORP LOTUS DEVELOPMENT CORP AND BORLAND INTERNATIONAL INC IN THE BEST OF ALL WORLDS OF COURSE ALL PRODUCTS WOULD BE SELFEXPLANATORY HOWEVER AS PRODUCTS BECOME MORE FLEXIBLE AND COMPLEX AND THE GIANT DISCOUNT STORES THAT SELL THEM BECOME LESS USERFRIENDLY MANUFACTURERS ARE ASSUMING THE HELP AND ADVICE JOBS THAT USED TO BE DONE AT STORE COUNTERS NONCOMPUTER COMPANIES ARE STARTING TO USE THE PROGRAMS TO HELP CONSUMERS FOR EXAMPLE BLACK & DECKER PROVIDES INFORMATION ABOUT SOME 4000 CURRENT AND OLD POWER TOOLS AND ACCESSORIES BUT UNTIL RECENTLY ITS PRODUCT SPECIALISTS ANSWERED CALLS ONLY DURING BUSINESS HOURS COMPUTERIZING SOLVED A NUMBER OF PROBLEMS THE COMPUTER CONTAINS SOLUTIONS TO PROBLEMS WITH ALL PRODUCTS SO CALLERS DON'T HAVE TO WAIT ON HOLD FOR SAY THE CIRCULARSAW SPECIALIST NOW ANY STAFFER CAN ANSWER THE QUESTION THAT MAKES THE HELP DESK EASIER TO STAFF SINCE INSTALLING THE SOFTWARE EARLIER THIS YEAR CUSTOMER REPRESENTATIVES HANDLE UP TO 100 CALLS A DAY COMPARED WITH 60 PREVIOUSLY THE NUMBER OF CALLBACKS HAS DROPPED 60 TRAINING TIME HAS BEEN REDUCED AND SINCE THE COMPUTER ELIMINATES THE NEED TO RIFFLE THROUGH A LOT OF MANUALS DESKS ARE CLEAN I'M A NEAT FREAK SAYS MS FRAZER I USED TO GIVE LECTURES ONCE A MONTH NOW IT LOOKS AS IF NOBODY WORKS AT THE DESKS BLACK & DECKER USES AN ARTIFICIAL INTELLIGENCE HELPDESK SOFTWARE PROGRAM MADE BY INFERENCE CORP OF EL SEGUNDO CALIF CALLED SMART WHICH STANDS FOR SUPPORT MANAGEMENT AUTOMATED REASONING TECHNOLOGY UNLIKE MOST COMPUTERIZED SYSTEMS THAT SEARCH FOR KEY WORDS SMART LETS REPRESENTATIVES ASK QUESTIONS IN ENGLISH AND GET RESPONSES THAT INCLUDE SOLUTIONS A VERY HIGH PERCENTAGE OF CALLS ARE READTHEMANUAL'TYPE QUESTIONS SAYS PETER TIERNEY INFERENCE PRESIDENT THE PROBLEM IS YOU HAVE TO KNOW WHAT YOU'RE LOOKING FOR BEFORE YOU ASK FOR IT PARTICULARLY IN TECHNICAL FIELDS THE INDEXES IN MANUALS FLUSTER NOVICE USERS BECAUSE INDEXES ARE OFTEN CONFUSING COMPUTERIZED HELP DESKS CAN ALSO GIVE COMPANIES AN EDGE OVER COMPETITORS UNITED PARCEL SERVICE USES HELPDESK SOFTWARE CALLED EXPERT ADVISER FROM SOFTWARE ARTISTRY INC OF INDIANAPOLIS UPS CUSTOMERS USE THE SOFTWARE TO PLAN PACKAGE ROUTING FROM THE LOADING DOCK AND TRACK PACKAGES THAT HAVE BEEN SENT FROM A COMPETITIVE STANDPOINT WE KNOW SOME CUSTOMERS USE MULTIPLE SHIPPERS IF THEY'RE HAVING PROBLEMS WITH OUR SOFTWARE THEY MIGHT JUST USE SOMEBODY ELSE SAYS ANTHONY ROMANUS SUPPORT CENTER MANAGER AT MANY COMPANIES TECHNICAL EXPERTS WHO USED TO BE CALLED TO THE PHONES TO ANSWER QUESTIONS CAN NOW WRITE TROUBLESHOOTING PLANS FOR VARIOUS CASES AND RELY ON CUSTOMERSERVICE REPRESENTATIVES TO DEAL WITH THE PUBLIC ALLOWING THE EXPERTS TO SPEND MORE TIME ON NEW PRODUCTS IF MANY CUSTOMERS CALL WITH THE SAME COMPLAINT SUPPORT STAFFERS MAY SUGGEST MANUFACTURING OR ENGINEERING CHANGES TO THE PRODUCT WHEN CONSUMERSERVICE REPRESENTATIVES SOLVE A PROBLEM THAT HASN'T YET BEEN ENCOUNTERED THEY CAN ADD THE SOLUTION TO THE LIST IN THE DATABASE AT HASBRO WHEN A CALLER COMPLAINS THE TRACKS ARE MISSING FOR THE PLAYSKOOL EXPRESS TRAIN SET THE SCREEN ADVISES THEM TO SEARCH THE PACKAGE AGAIN THE TRACK IS TIED TO THE BOTTOM OF A CARDBOARD SHEET IN THE PACKAGE AND MANY BUYERS ACCIDENTALLY THROW IT AWAY WITH THE PACKAGING HASBRO OPERATORS URGE CALLERS TO SEARCH THE GARBAGE 9311030103 931103 BESSEMER TRUST PORTFOLIO MANAGER TROTT MAKES A BIG BET ON EMERGING MARKETS BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON JOHN TROTT IS A MODEL OF RESERVE HE GRADUATED FROM OXFORD UNIVERSITY HIS FATHER WORKED FOR THE BANK OF ENGLAND ONE SON IS A BRITISH DIPLOMAT IN BURMA A DAUGHTER TEACHES GRADE SCHOOL AND A SECOND SON IS STUDYING ECONOMICS AT EXETER UNIVERSITY MR TROTT AND HIS WIFE LIVE IN BLETCHINGLEY A QUIET TUDORSTYLE VILLAGE 20 MILES SOUTH OF LONDON WHERE THEY ANNUALLY OPEN THEIR TWOTHIRDSACRE GARDEN TO THE PUBLIC AND DONATE THE PROCEEDS TO CHARITY BUT THE STOCK PORTFOLIO MR TROTT OVERSEES IS ANYTHING BUT ORTHODOX AS THE CHIEF INTERNATIONAL INVESTMENT OFFICER FOR BESSEMER TRUST CO HE MANAGES THE BLUEBLOOD FIRM'S NONUS EQUITY HOLDINGS HE HAS NO MONEY INVESTED IN JAPAN NEXT TO NOTHING IN GERMANY AND 35 LESS THAN THE STANDARD ALLOCATION TO BRITAIN INSTEAD MORE THAN 28 OF THE 1 BILLION MR TROTT MANAGES IS INVESTED IN THE EMERGING STOCK MARKETS OF DEVELOPING COUNTRIES ADD THE 10 HE HAS IN HONG KONG SHARES LARGELY A PLAY ON THE BOOMING CHINESE ECONOMY AND IT'S EVIDENT THE 55YEAROLD MONEY MANAGER HAS MADE A COLOSSAL BET ON THE THIRD WORLD SO FAR IT HAS PAID OFF FOR THE YEAR ENDED SEPT 30 HIS PORTFOLIO ROSE 281 IN DOLLAR TERMS COMPARED WITH 268 FOR MORGAN STANLEY CAPITAL INTERNATIONAL'S EUROPE AUSTRALIA FAR EAST EAFE INDEX THE STOCK MARKET BENCHMARK AGAINST WHICH MOST INTERNATIONAL MONEY MANAGERS INCLUDING MR TROTT ARE JUDGED CONSIDERING THAT JAPAN REPRESENTS 467 OF THE EAFE INDEX AND GERMANY 62 HIS VOTE OF NO CONFIDENCE IN THE WORLD'S SECOND AND THIRDLARGEST ECONOMIES IS GUTSY WE BELIEVE THAT OUR CLIENTS ARE PAYING US TO MAKE POSITIVE DECISIONS ABOUT THE OVERALL ASSET MIX OF THE PORTFOLIO NOT TO APE AN INDEX SAYS MR TROTT HE CALLS BESSEMER A GROWTH MANAGER BUT ONE NOT WILLING TO OVERPAY FOR THAT GROWTH HIS CURRENT ASSET MIX IS BASED ON SIMPLE LOGIC MR TROTT SEES THE WORLD'S MATURE ECONOMIES GROWING AT 2 TO 3 DURING THE NEXT FEW YEARS WHILE MANY DEVELOPING COUNTRIES GALLOP ALONG AT 5 TO 8 IN THIS ENVIRONMENT COMPANIES OPERATING FROM HIGHCOST MANUFACTURING BASES LIKE GERMANY AND JAPAN ARE GOING TO FIND IT A LOT MORE DIFFICULT TO EARN A GOOD RETURN ON CAPITAL HE SAYS JAPANESE COMPANIES HE CONTENDS WILL BE BURDENED WITH AN OVERVALUED YEN AND A MUCH HIGHER COST OF CAPITAL THAN IN THE 1980S BY CONTRAST THE COMBINATION OF LOWFUNDING COSTS AND A WEAK YEN DURING THE PAST DECADE PLAYED A MAJOR PART IN MAKING MANY JAPANESE COMPANIES UNASSAILABLE COMPETITORS GERMAN CORPORATIONS AREN'T MUCH BETTER OFF GERMAN WAGES ARE THE WORLD'S HIGHEST AND WHILE MANY GERMAN COMPANIES MUST RESTRUCTURE TO BECOME MORE COMPETITIVE RIGID GERMAN LABOR LAWS MAKE IT VERY COSTLY TO DO SO IT'S GOING TO BE A LONG TIME BEFORE THEY GET COSTS DOWN TO LEVELS OF THE REST OF THE WORLD SAYS MR TROTT IN ADDITION HE SAYS CONSUMERS WORLDWIDE ARE LOOKING FOR LOWER PRICES AND THEY DON'T PERCEIVE GERMAN PRODUCTS WARRANTING THE PRICES THEY SELL FOR THEREFORE MR TROTT ARGUES ANY ANALYSIS THAT RELATES TO COMPANIES' PAST RETURNS ON SALES OR EQUITY IS IRRELEVANT FOR INSTANCE HE PREDICTS THAT EVEN AFTER JAPAN'S ECONOMY RECOVERS WHICH HE DOESN'T ANTICIPATE HAPPENING UNTIL 1995 JAPANESE STOCKS WILL SELL FOR WELL IN S OF 50 TIMES EARNINGS THAT'S DOWN FROM 75 TIMES EARNINGS IN THE YEAR ENDING MARCH 31 1994 BUT WELL ABOVE THE 336 AVERAGE THEY TRADED AT IN THE 1980S ON THE OTHER HAND MR TROTT BELIEVES THAT PRICEEARNINGS RATIOS IN MANY EMERGING STOCK MARKETS DON'T ADEQUATELY REFLECT THEIR SUPERIOR GROWTH PROSPECTS DESPITE THE HONG KONG STOCK MARKET'S STELLAR 74 RISE THIS YEAR HE BELIEVES THAT CHINA'S STRONG ECONOMIC PROSPECTS JUSTIFY HONG KONG STOCKS TRADING AT A MULTIPLE OF 18 UP FROM THEIR CURRENT 154 WHILE THERE WILL BE BUMPS I BELIEVE THAT CHINA'S MOVE TO A MARKETORIENTED SOCIETY WON'T BE REVERSED HE SAYS AND THE ASIA/PACIFIC AREA IS HIS FAVORITE BESSEMER HAS 35 OF ITS INTERNATIONAL EQUITY PORTFOLIO SPREAD AMONG 10 COUNTRIES HONG KONG AUSTRALIA THAILAND NEW ZEALAND SINGAPORE SOUTH KOREA THE PHILIPPINES MALAYSIA INDONESIA AND INDIA THE FUTURE OF THIS PART OF THE WORLD ISN'T GOING TO COME AS MUCH FROM INCREASED EXPORTION AS FROM DEMAND INTERNALLY GENERATED WITHIN THE REGION HE SAYS HE NOTES FOR INSTANCE THAT INDIA HAS THE LARGEST MIDDLE CLASS IN THE WORLD ROUGHLY 200 MILLION PEOPLE AN ADDITIONAL 11 OF HIS PORTFOLIO IS INVESTED IN LATIN AMERICA 4 IN TURKEY AND 3 IN SOUTH AFRICA IN ADDITION TO HIGH GROWTH POTENTIAL HE THINKS THESE COUNTRIES OFFER GREATER DIVERSITY THAN THE BIGGER JAPANESE OR EUROPEAN STOCK MARKETS THAT'S BECAUSE THEY OFTEN DON'T RISE AND FALL IN LINE WITH THE US MARKET A LARGE PART OF BESSEMER'S EUROPEAN STOCK PORTFOLIO IS HEDGED AGAINST A STRONGER DOLLAR WHICH MR TROTT EXPECTS TO RISE TO 175 MARKS BY MARCH BUT AFTER THE US CURRENCY CLIMBS TO THE 175180 MARK AREA HE PLANS TO REMOVE THE HEDGES BESSEMER HAS 85 BILLION UNDER MANAGEMENT OF WHICH 39 BILLION IS INVESTED IN EQUITIES THE FIRM RECOMMENDS THAT ITS US CLIENTS HAVE 40 OF THEIR STOCK PORTFOLIO INVESTED INTERNATIONALLY NOT ALL HOWEVER HEED THE ADVICE TWO GLOBAL THEMES BESSEMER IS PLAYING ARE FALLING INTEREST RATES WHICH ALLOW BANKS TO WIDEN THE SPREAD BETWEEN WHAT THEY PAY FOR MONEY AND WHAT THEY LEND IT AT AND THE FASTGROWING TELECOMMUNICATIONS AND MEDIA FIELD THE FIRM HAS BIG STAKES IN NATIONAL AUSTRALIA BANK LTD UNION BANK OF SWITZERLAND THAILAND'S SIAM CITY BANK LTD AND HSBC HOLDINGS LTD A BRITISHBASED BANK HOLDING COMPANY IN FACT A BANK DEUTSCHE BANK AG ALSO REPRESENTS BESSEMER'S ONLY INVESTMENT IN GERMANY IN THE TELECOMMUNICATIONS AREA ITS BIGGEST HOLDINGS INCLUDE BRITAIN'S CABLE & WIRELESS PLC TELECOMUNICACOES BRASILEIRAS SA TELEFONICA DE ARGENTINA SA ITALY'S STETSOCIETA FINANZIARIA TELEFONICA PA AND NETAS SA A TURKISH SUPPLIER OF TELEPHONE EXCHANGES AND SWITCHING EQUIPMENT IN THE MEDIA FIELD MR TROTT HAS A LARGE HOLDING IN AUSTRALIA'S NEWS CORP THE QUIET POLITE ENGLISHMAN FIRST STARTED INVESTING IN EMERGING STOCK MARKETS IN THE EARLY 1980S WHEN HE WORKED AT KLEINWORT SON INVESTMENT MANAGEMENT LTD HE REGARDS THE MOVE AS HIS BIGGEST INVESTMENT SUCCESS HIS BIGGEST MISTAKE THE SAME BET ON JAPAN THAT HE IS MAKING NOW IN THE MID1980S HE BAILED OUT OF JAPANESE STOCKS WHEN THE NIKKEI 225 INDEX ROSE TO 25000 THE TOKYO STOCK MARKET ROSE 56 BEFORE COLLAPSING IN 1990 I HOPE THAT EXPERIENCE IN JAPAN WON'T BE REPEATED HE SAYS 9311030102 931103 COMMODITIES COPPER FUTURES SURGE ON GOVERNMENT REPORT OF BETTER HOME SALES A KEY INDICATOR FOR METAL BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COPPER FUTURES PRICES SURGED AFTER THE COMMERCE DEPARTMENT REPORTED IMPROVED SEPTEMBER HOME SALES IN THE LATEST OF A SERIES OF POSITIVE GOVERNMENT REPORTS ON THE ECONOMY AT NEW YORK'S COMMODITY EXCHANGE THE ACTIVELY TRADED DECEMBER COPPER FUTURES CONTRACT WAS UP 095 CENTS TO 7385 CENTS A POUND COPPER FUTURES PRICES HAVE BEEN IN THE DOLDRUMS FOR THE PAST FEW WEEKS PRIMARILY BECAUSE OF WEAK DEMAND FOR THE INDUSTRIAL METAL FROM AUTOMOTIVE AND OTHER INDUSTRIES IN GERMANY AND JAPAN AT 7385 CENTS A POUND THE PRICE OF THE DECEMBER FUTURES CONTRACT IS NOW MORE THAN 15 LOWER THAN ITS 87CENT LEVEL IN EARLY SEPTEMBER YESTERDAY HOWEVER TRADERS BID UP PRICES AFTER THE COMMERCE DEPARTMENT REPORTED THAT SINGLEFAMILY HOME SALES WERE UP 208 IN SEPTEMBER ANY IMPROVEMENT IN THE US CONSTRUCTION INDUSTRY'S FORTUNES IS SEEN AS BECAUSE THE INDUSTRY IS ONE OF THE BIGGEST USERS OF THE METAL RECENT CONSUMER CONFIDENCE US AUTO SALES AND HOUSING DATA REPORTS ALL INDICATE ECONOMIC GROWTH IN FOURTH QUARTER OF THIS YEAR AND THE FIRST QUARTER OF NEXT YEAR WILL BE BETTER THAN EXPECTED SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THE SINGLEFAMILY HOME SALES FIGURE CRYSTALIZED SOME OF THAT ECONOMICIMPROVEMENT SCENARIO ANALYSTS SAID THE COPPER MARKET HAS ABSORBED MOST OF THE NEGATIVE NEWS ABOUT DIMINISHING DEMAND FROM JAPAN AND EUROPE AND HAS PROBABLY OVERREACTED TO IT THE MARKET IS SEVERELY OVERSOLD AT THIS POINT SAID FRED DEMLER METALS ECONOMIST FOR ED& F MAN MOREOVER THE LONDON METALS EXCHANGE YESTERDAY REPORTED THAT ITS COPPER STOCKS FELL 1350 TONS TO A TOTAL OF 612250 TONS THESE ARE THE STOCKS OF COPPER AVAILABLE TO MAKE DELIVERY ON THE EXCHANGE'S FUTURES CONTRACTS COPPER TRADERS IN NEW YORK AND ELSEWHERE WATCH THEM CLOSELY BECAUSE DECREASES IN THE STOCKS ARE SEEN AS AN INDICATOR OF INCREASING DEMAND FOR COPPER THE LONDON EXCHANGE'S STOCKS HAVE BEEN RISING STEADILY OVER THE PAST FEW MONTHS PAINTING A GLOOMY PICTURE OF WORLDWIDE COPPER CONSUMPTION EVEN THOUGH A DECLINE OF 1350 TONS ISN'T ALL THAT MUCH IN THE SCHEME OF THINGS MR O'NEILL SAID IT SIGNALS THAT WE'RE NEARING THE POINT WHERE THE INCREASES MAY TAPER OFF THE MARKET YESTERDAY ALSO WAS BOLSTERED BY A REPORT THAT SHOWED THAT CHINESE IMPORTS OF COPPER ARE HIGHER SO FAR THIS YEAR THAN THEY WERE A YEAR AGO MR DEMLER SAID IMPORTS BY CHINA POTENTIALLY COULD TOTAL AS MUCH AS 300000 TONS THIS YEAR SLIGHTLY HIGHER THAN LAST YEAR'S IMPORTS HE SAID COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY WERE BIG BUYERS IN THE COPPER MARKET YESTERDAY ANALYSTS SAID MAINLY THEY WERE BUYING FUTURES CONTRACTS TO CANCEL SHORT POSITIONS OR WAGERS THAT COPPER FUTURES PRICES WOULD CONTINUE TO FALL IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES PRICES FELL AGAIN AS WIDE DAILY SWINGS CONTINUED IN THE OIL MARKETS DECEMBER CRUDE OIL DROPPED BRIEFLY BELOW 17 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE IN LATER TRADING IT ROSE ABOVE THAT PSYCHOLOGICALLY IMPORTANT LEVEL BUT STILL WAS DOWN 31 CENTS FOR THE DAY TO SETTLE AT 1712 A BARREL IN FUEL FUTURES TRADING UNLEADED GASOLINE WAS THE WEAKEST ALTHOUGH HEATING OIL AND NATURAL GAS PRICES ALSO WERE DOWN THERE WAS LITTLE NEWS YESTERDAY TO AFFECT PRICES ALTHOUGH THE PERCEPTION OF OVERSUPPLY CONTINUES TO HANG OVER THE OIL MARKETS ANOTHER OIL PUBLICATION THE WEEKLY PETROLEUM ARGUS REPORTED THAT CRUDE PRODUCTION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES AVERAGED 247 MILLION BARRELS A DAY IN OCTOBER SOME 130000 BARRELS A DAY LESS THAN IN SEPTEMBER EVEN SO TRADERS WERE CAUTIOUS AHEAD OF THE WEEKLY REPORT OF US OIL INVENTORY FIGURES BY THE AMERICAN PETROLEUM INSTITUTE THE API REPORT WAS RELEASED AFTER FUTURES TRADING CLOSED IT SHOWED THAT US INVENTORIES OF GASOLINE AND DISTILLATE FUELS INCREASED LAST WEEK BY 18 MILLION AND 39 MILLION BARRELS RESPECTIVELY GRAINS & SOYBEANS PRICES OF SOYBEAN CORN AND WHEAT FUTURES CONTRACTS ROSE AS RUSSIA BEGAN REPAYING THE US AGRICULTURE DEPARTMENT FOR MAKING GOOD ON THE GRAIN LOAN PAYMENTS THAT MOSCOW MISSED IN 1992 THE AGRICULTURE DEPARTMENT SAID MOSCOW PAID 1487 MILLION AND HAS AGREED TO PAY 148 MILLION ON NOV 30 AND 1474 MILLION ON DEC 31 GRAIN PRICES ROSE IN PART ON SPECULATION THAT THE PAYMENTS MIGHT CLEAR THE WAY FOR THE AGRICULTURE DEPARTMENT TO ARRANGE NEW EXPORT AID TO RUSSIA IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR NOVEMBER DELIVERY ROSE 925 CENTS A BUSHEL TO SETTLE AT 62775 A BUSHEL THE PAYMENTS ARE PART OF A COMPLICATED PLAN TO GET RUSSIA UP TO DATE ON ITS USBACKED GRAIN DEBT EARLIER THIS YEAR THE US AND MOSCOW AGREED TO A RESCHEDULING PROGRAM THAT COVERS THE DEBTS RUSSIA RAN UP IN 1991 TO IMPORT US GRAIN RUSSIA AND THE FORMER SOVIET UNION SPENT NEARLY 4 BILLION UNDER A US LOAN GUARANTEE PROGRAM TO IMPORT US CROPS UNDER THE PROGRAM THE AGRICULTURE DEPARTMENT COMPENSATED INTERNATIONAL BANKS WHEN MOSCOW MISSED PAYMENTS ON GRAIN LOANS 9311030101 931103 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED EQUAL TO 90 OR MORE OF SHARES SOLD SHOLDS OTHER CLASS OF STOCK XREFLECTS SHARES HELD INDIRECTLY LATE FILING BASE PERIOD IS LESS THAN 3 YEARS OOFFICER ZOTHER BOUGHT OR SOLD DURING THE LAST 12 WEEKS EXPRESSED AS A PERCENTAGE CHANGE OF ONLY THEIR HOLDINGS AT THE START OF THE PERIOD REFLECTS COMPANIES FOR WHICH FILINGS MADE LAST WEEK SHOWED SOME INSIDER ACTIVITY DURING THE LATEST 12 WEEKS EXCLUDED COMPANIES WITH TOTAL TRADES VALUED UNDER 75000 OPTIONRELATED SALES COMPANIES WITH FEWER THAN THREE BUYERS OR SELLERS OR FEWER BUYERS OR SELLERS THAN THE HISTORICAL AVERAGE FOR THE PERIOD BASED ON THE PREVIOUS THREE YEARS 9311030100 931103 HEERE'S DAVID LETTERMAN OUT IN FRONT OF HIS RIVALS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TWO MONTHS INTO THE FALL LATENIGHT TELEVISION WARS CBS'S 50 MILLIONPLUS INVESTMENT IN DAVID LETTERMAN SEEMS TO BE PAYING OFF ONE COMPETITOR FOX BROADCASTING CO'S THE CHEVY CHASE SHOW HAS ALREADY DROPPED BY THE WAYSIDE AND MR LETTERMAN'S REMAINING CHATSHOW RIVALS NBC'S LONGDOMINANT TONIGHT SHOW WITH THE STUDIOUSLY INOFFENSIVE JAY LENO AS HOST THE UNKNOWN CONAN O'BRIEN WHO INHERITED MR LETTERMAN'S OLD NBC TIME PERIOD AND PARAMOUNT COMMUNICATIONS INC'S SYNDICATED THE ARSENIO HALL SHOW ALL HAVE SLIPPED CBS'S MOST FORMIDABLE COMPETITION TURNS OUT TO BE ABC'S NIGHTLINE WHICH COMPETES WITH THE FIRST HALFHOUR OF MR LETTERMAN'S HOURLONG SHOW AND IS ABOUT 6 AHEAD OF WHERE IT STOOD A YEAR AGO EXECUTIVES AT ABC A UNIT OF CAPITAL CITIES/ABC INC SAY THE GAIN COMES FROM THE NEWS PROGRAM'S MORE VARIED FORMAT WHICH NOW INCLUDES MORE FEATURES AND INVESTIGATIVE PIECES TO AUGMENT ITS TRADITIONAL ANALYSIS OF THE DAY'S TOP STORY CBS INC OFFERED MR LETTERMAN 42 MILLION OVER THREE YEARS TO DEFECT FROM GENERAL ELECTRIC CO'S NBC WHERE HE HAD BEEN FOR MORE THAN A DECADE CBS SPENT AN ADDITIONAL 8 MILLION TO BUY AND REFURBISH THE ED SULLIVAN THEATER IN NEW YORK CITY TO HOUSE THE SHOW ON HIS NEW LATE SHOW AT AN EARLIER HOUR MR LETTERMAN HASN'T STRAYED TOO FAR FROM THE LOOPY STUNTS SATIRE AND INTERVIEWS THAT WON HIM A FOLLOWING ON HIS OLD LATE NIGHT NBC SHOW BUT THE CBS SHOW HAS A LIVELIER QUALITY AND MR LETTERMAN IS TAKING CAMERAS OUTSIDE MORE OFTEN FOR MAN ON THE STREET VIDEO INTERPLAY WITH HIS STUDIO NEIGHBORS SUCH AS THE LOCAL DELI OWNER THIS FORMULA HAS GIVEN CBS AND MR LETTERMAN A HEALTHY 53 OF THE NATION'S 942 MILLION TV HOMES ACCORDING TO NIELSEN MEDIA RESEARCH NUMBERS FOR THE SEASON TO DATE SEPT 20 THROUGH OCT 24 THAT'S ABOUT DOUBLE WHAT CBS DREW A YEAR AGO WITH STEAMY CRIME TIME AFTER PRIME TIME DRAMAS AND A LEVEL NOT ATTAINED BY ANYONE IN THE TIME PERIOD SINCE THE 198788 SEASON OF NBC'S TONIGHT SHOW WHEN JOHNNY CARSON WAS HOST BY CONTRAST MR LENO'S TONIGHT SHOW IS AVERAGING 41 OF TV HOMES THIS SEASON WHICH INCLUDED A WEEK OF REPEATS NIGHTLINE IS AVERAGING 47 ALTHOUGH THAT NUMBER INCREASES WHEN MONDAY NIGHTS ARE EXCLUDED ON MONDAYS NIGHTLINE IS DELAYED BY FOOTBALL TELECASTS ARSENIO HALL'S RATINGS WHICH ARE ONLY AVAILABLE FOR THE PERIOD ENDED OCT 11 PUT HIM AT 22 OF HOMES VS 27 LAST SEASON MR LETTERMAN'S BIGGEST FEAT HAS BEEN TO INCREASE BY 8 THE NUMBER OF HOMES WATCHING TELEVISION IN HIS NEW TIME SLOT THE HOUR BEGINNING AT 1135 PM HE HAS ALSO DRAWN 10 MORE 18TO34YEAROLD VIEWERS TO THEIR SETS AND SURPRISING EVEN CBS MR LETTERMAN IS DOING BETTER WITH YOUNG WOMEN THAN WITH THE YOUNG MEN WHO PREVIOUSLY WERE THOUGHT TO BE HIS CORE AUDIENCE THE AUDIENCE IS BROADER THAN WAS ANTICIPATED SAYS DAVID POLTRACK A SENIOR VICE PRESIDENT AT CBS THE STRONGER RATINGS ARE ENABLING CBS TO SELL THE REMAINING 30SECOND COMMERCIALS ON MR LETTERMAN'S SHOW FOR AN ESTIMATED 36000 TO 40000 UP FROM THE 25000 TO 30000 THAT ADVERTISERS PAID BEFORE THE SHOW WAS LAUNCHED THE PROGRAM IS SOLD OUT THROUGH DEC 31 AND 90 SOLD THROUGH AUGUST OF 1994 WE EXPECTED LETTERMAN AND LENO TO BE WHERE THEY ARE SAYS JON MANDEL SENIOR VICE PRESIDENT AT GREY ADVERTISING BUT HE SAYS HE ALSO BOUGHT AD TIME FOR CLIENTS ON THE RECENTLY CANCELED CHEVY CHASE SHOW ON NEWS CORP'S FOX BROADCASTING NOT BECAUSE WE THOUGHT IT WOULD WORK BUT WE WERE SORT OF HOPING LIKE IN ANY COMMODITY MARKET YOU HEDGE YOUR INVESTMENT THE PROGRAM SAVAGED BY CRITICS WHO FOUND MR CHASE UNFUNNY AND ILLPREPARED WAS ABRUPTLY CANCELED AFTER SIX WEEKS ITS REPLACEMENT RERUNS OF IN LIVING COLOR DRAWS MORE VIEWERS THAN MR CHASE DID ADVERTISERS THAT BOUGHT TIME ON MR CHASE'S SHOW HAVE THE OPTION OF TAKING MAKEGOOD ADS IN ITS REPLACEMENT OR ON OTHER SHOWS ON THE FOX SCHEDULE OR THEY CAN GET THEIR MONEY BACK GREY'S MR MANDEL DOUBTS THAT MUCH FOX AD MONEY WILL MOVE OVER TO NBC OR CBS PARTICULARLY BECAUSE MR LETTERMAN'S AD RATES HAVE RISEN NOR ARE COMPETING SHOWS EXPECTED TO GET A RATINGS WINDFALL FROM MR CHASE'S DEPARTURE HE DIDN'T HAVE MUCH OF AN AUDIENCE LEFT TO DIVIDE UP SAYS ONE NETWORK EXECUTIVE BECAUSE MR LETTERMAN HAS BROUGHT IN NEW VIEWERS HIS SUCCESS HAS NOT COME TOTALLY AT THE EXPENSE OF HIS COMPETITION BUT THE MORE MAINSTREAM MR LENO WITH HIS FONDNESS FOR POLITICAL HUMOR IS OFF OVERALL BY ABOUT 7 FROM A YEAR AGO AND DOWN 12 IN ADULTS 1849 AN AUDIENCE COVETED BY ADVERTISERS DAVID CAN DO BUSINESS IN THE TIME PERIOD AND WE CAN DO BUSINESS ARGUES ERIC CARDINAL VICE PRESIDENT NBC RESEARCH AND HE ADDS WE THINK WE'RE STILL IN A SHAKEOUT PERIOD WITNESS CHEVY GETTING SHAKEN OUT LATE NIGHT WITH CONAN O'BRIEN HOWEVER IS NOT FARING WELL ITS RATINGS HAVE BEEN STEADILY SINKING EXCEPT FOR A SLIGHT UPWARD BLIP TWO WEEKS AGO MR O'BRIEN A COMEDY WRITER ON THE SIMPSONS PRIOR TO HIS BIGLEAGUE PERFORMING DEBUT THIS SEASON AVERAGED 18 OF TV HOMES SO FAR THIS SEASON WELL BELOW WHAT MR LETTERMAN DID IN THAT TIME SLOT ON NBC IT'S A WORK IN PROGRESS WE'RE IN FOR THE LONG HAUL MR CARDINAL SAYS OF THE PROGRAM MR O'BRIEN HAS BEEN CRITICIZED FOR HIS NERVOUS MANNERISMS HIS DISJOINTED INTERVIEWING TECHNIQUE AND HIS LACONIC SIDEKICK ANDY RICHTER MEANWHILE A PUBLICIST FOR THE ARSENIO HALL SHOW PREDICTS THAT IT IS POISED FOR A RATINGS UPSWING NOW THAT VIEWERS HAVE CHECKED OUT THE NEW OFFERINGS MR LETTERMAN IS DOING THE JOB WITH ONE HAND TIED BEHIND HIS BACK NEARLY A THIRD OF THE COUNTRY DOES NOT SEE HIS SHOW UNTIL MIDNIGHT OR LATER BECAUSE ABOUT 50 CBS AFFILIATE STATIONS CHOOSE TO DELAY IT IN FAVOR OF SYNDICATED FARE THOSE DELAYS PUSHING THE SHOW WELL PAST MOST VIEWERS' BEDTIME COST MR LETTERMAN ALMOST A FULL RATING POINT OR MORE THAN 750000 HOMES SAYS ANTHONY MALARA CBS'S PRESIDENT OF AFFILIATE RELATIONS MR MALARA'S DEPARTMENT HAS BEGUN WHAT HE CALLS AN INYOURFACE WAR BOMBARDING HOLDOUT STATIONS WITH DAILY FAXES OF THE PREVIOUS NIGHT'S RATINGS AND CONSTANT PHONE CALLS AIMED AT PERSUADING THEM TO CARRY THE LETTERMAN SHOW AT THE SCHEDULED TIME SO FAR THE BLITZ HAS SUCCEEDED WITH A HANDFUL OF STATIONS IN SUCH PLACES AS COLORADO SPRINGS COLO SIOUX FALLS SD AND ODESSA TEXAS BOOSTING TO 71 FROM 67 THE PERCENTAGE OF THE COUNTRY THAT SEES THE SHOW ON SCHEDULE AND TWO MAJOR CBS AFFILIATES THE STATIONS IN DALLAS AND WASHINGTON AGREEING TO CARRY THE SHOW AT 1135 PM EASTERN A DEVELOPMENT CBS HOPES WILL HELP SOLIDIFY MR LETTERMAN'S RATINGS LEAD 9311030099 931103 LETTERS TO THE EDITOR SERIOUSLY IT'S ANYTHING BUT FRIVOLOUS JOHN G ADLER THE CHIEF EXECUTIVE OFFICER OF ADAPTEC INC WROTE A RULE OF LAW COLUMN ON SEPT 15 CLAIMING HE WAS AN INNOCENT VICTIM OF A FRIVOLOUS SECURITIES SUIT WE SUED MR ADLER AND CAN TELL YOU THE SUIT WAS ANYTHING BUT FRIVOLOUS MR ADLER IS NO VICTIM THE ADAPTEC STOCK PURCHASERS WERE TWO OF US BOUGHT STOCK IN ADAPTEC AT CLOSE TO 20 A SHARE BASED ON ADAPTEC'S REPEATED FORECASTS OF STRONG CONTINUING PROFITABLE GROWTH WHEN ADAPTEC ADMITTED THESE PUBLIC STATEMENTS HAD BEEN WRONG THE STOCK COLLAPSED TO LESS THAN 10 A SHARE WE LATER DISCOVERED THAT MR ADLER AND OTHER ADAPTEC INSIDERS HAD BEEN MAKING MILLIONS SELLING OFF THEIR ADAPTEC STOCK BEFORE THE DROP WHILE SHAREHOLDERS LOST MUCH OF THEIR MONEY HERE ARE A FEW OF THE FACTS OMITTED BY MR ADLER IN HIS COLUMN ON OCT 15 1990 MR ADLER TOLD SECURITIES ANALYSTS THAT ADAPTEC WOULD ACHIEVE TREMENDOUS GROWTH AND THAT FUTURE QUARTERS WOULD BE VERY VERY GOOD FOR US ON DEC 3 1990 ADAPTEC CAPPED MONTHS OF FAVORABLE FORECASTS BY TELLING BARRON'S THAT ITS EARNINGS WOULD INCREASE FOR THE NEXT TWO FISCAL YEARS THEN ON DEC 11 1990 ADAPTEC STOCK COLLAPSED BY 33 TO LESS THAN 10 A SHARE ON HUGE VOLUME FOLLOWING THE COMPANY'S DISCLOSURE THAT ITS EARNINGS WOULD BE MUCH WORSE THAN EXPECTED DUE TO A SALES SHORTAGE BARRON'S TRIED TO GET AN EXPLANATION FOR ADAPTEC'S SUDDEN CHANGE IN FORTUNE BUT COULD NOT IT WROTE THAT MR ADLER WENT INTO A DEEP SULK AND WAS STRUCK COMPLETELY MUTE IT TURNED OUT THAT DURING THE MONTHS BEFORE THE DROP WHEN HE AND ADAPTEC'S OTHER OFFICERS WERE MAKING THEIR FORECASTS MR ADLER WAS ACTUALLY SELLING 153318 SHARES OF HIS STOCK SOME 90 OF HIS HOLDINGS FOR MORE THAN 21 A SHARE POCKETING 32 MILLION OTHER ADAPTEC OFFICERS SOLD 100000 SHARES WORTH 2 MILLION WHEN INVESTORS SUED HIM FOR INSIDERTRADING AND DECEIVING THE MARKETPLACE MR ADLER CONDEMNED THE SUIT AS A FISHING EXPEDITION BY PLAINTIFFS A FEDERAL JUDGE HEARD HIS LAWYER'S MOTION TO DISMISS THE CASE AND DISAGREED HE LET THE CASE GO FORWARD MR ADLER COMPLAINS THAT HE RELUCTANTLY AGREED TO SETTLE THE FACT IS THAT HE AGREED TO SETTLE DURING NEGOTIATIONS SUPERVISED BY A MAGISTRATEJUDGE WHO WAS FAMILIAR WITH THE EVIDENCE OBTAINED BY PLAINTIFFS DURING DISCOVERY MR ADLER KNOWS THIS EVIDENCE IS SHIELDED FROM DISCLOSURE BY A COURT ORDER THAT HE AND ADAPTEC INSISTED ON TO PREVENT DISCLOSURE OF ANY OF THE EVIDENCE MR ADLER ALSO KNOWS THAT THE MAGISTRATEJUDGE HAS INSISTED HER RECOMMENDATIONS CONCERNING SETTLEMENT REMAIN CONFIDENTIAL IT IS EASY TO PROCLAIM YOUR INNOCENCE WHEN YOU KNOW THE EVIDENCE OF YOUR GUILT AND THE CONTENT OF THE SETTLEMENT NEGOTIATIONS CANNOT BE MADE PUBLIC THE CASE WAS SETTLED FOR 43 MILLION MR ADLER AND ADAPTEC'S OTHER INSIDERS DID NOT PAY ONE CENT THEY CAUSED ALL THAT MONEY TO BE PAID BY ADAPTEC AND THE D&O INSURANCE THERE IS MORE AT STAKE HERE THAN JUST OUR CASE AGAINST MR ADLER HIS ATTACK IS PART OF A MASSIVE 12 MILLION LOBBYING AND PUBLIC RELATIONS EFFORT AIMING TO PASS LEGISLATION IN CONGRESS THAT WOULD SHIELD ACCOUNTANTS STOCK UNDERWRITERS AND CORPORATE WRONGDOERS FROM THEIR RESPONSIBILITIES TO THE INVESTING PUBLIC THESE INDUSTRIES HAVE BANDED TOGETHER TO FORM THE COALITION TO END ABUSIVE SECURITIES SUITS THEIR PURPOSE IS TO INFLUENCE CONGRESS TO ENACT LEGISLATION CURTAILING CLASS ACTION SECURITIES FRAUD SUITS SUCH SUITS ARE THE MOST POTENT DETERRENT TO FINANCIAL FRAUD IN THIS COUNTRY IF CONGRESS PASSES THIS LEGISLATION CURTAILING THEM IT WILL BE UNDERMINING INVESTORS' CONFIDENCE THAT THEY WILL BE PROTECTED AGAINST FRAUD THIS WOULD ONLY BRING ABOUT MORE FRAUD MORE CHEATED INVESTORS AND ULTIMATELY A WEAKER ECONOMY 9311030098 931103 DELOITTE IS HIT BY JURY AWARD OF 77 MILLION PUNITIVE DAMAGE IS LEVIED IN CASE OF TAX RETURNS FOR CATTLE PARTNERSHIP BY CALEB SOLOMON AND LEE BERTON STAFF REPORTERS OF THE WALL STREET JOURNAL A TEXAS JURY LEVIED 77 MILLION IN PUNITIVE DAMAGES AGAINST DELOITTE & TOUCHE FOR GROSS NEGLIGENCE IN PREPARING TAX RETURNS FOR A CATTLE PARTNERSHIP THAT CLAIMED DEDUCTIONS ON GRAZING PASTURES IT COULDN'T PROVE THE COWS REALLY USED THE AWARD MADE IN A STATE DISTRICT COURT IN HOUSTON STEMS FROM A CLASSACTION SUIT FILED ON BEHALF OF 10358 INVESTORS IN THE LIMITED PARTNERSHIP CALLED GRANADA 4 THE PLAINTIFFS' ATTORNEY LEE GODFREY OF THE HOUSTON FIRM SUSMAN GODFREY SAID DELOITTE ALSO MAY HAVE TO REIMBURSE THE INVESTORS FOR AT LEAST 26 MILLION IN PENALTIES THEY HAD TO PAY THE INTERNAL REVENUE SERVICE AS A RESULT OF DELOITTE'S ACTIONS THE OUTCOME OF THE THREEANDAHALFDAY TRIAL IS JUST THE LATEST IN A SERIES OF DAMAGE AWARDS AGAINST ACCOUNTING FIRMS IN THE PAST TWO YEARS THE INDUSTRY WHICH HAS SEEN ITS LIABILITY INSURANCE COSTS SOAR IS TRYING TO GET CONGRESS TO LIMIT THE AMOUNT THAT ACCOUNTANTS ARE LIABLE FOR WHENEVER A BUSINESS GETS INTO TROUBLE FINANCIALLY DELOITTE THE THIRDLARGEST US ACCOUNTING FIRM HAS OTHER LITIGATION PROBLEMS THAT WILL PUT PRESSURE ON ITS FINANCES SAY ACCOUNTING INDUSTRY OBSERVERS EARLIER THIS YEAR NEGOTIATIONS BROKE DOWN BETWEEN THE FIRM AND FEDERAL REGULATORS OVER LAWSUITS SEEKING MORE THAN 14 BILLION IN DAMAGES FOR ALLEGEDLY FAULTY AUDITS OF BANKS AND THRIFTS ARTHUR BOWMAN PUBLISHER OF BOWMAN'S ACCOUNTING REPORT WHICH COVERS THE MAJOR ACCOUNTING FIRMS SAID THAT THE AWARD IN HOUSTON ALONE WON'T BE DEVASTATING TO DELOITTE BUT HE ADDED IF THE FIRM IS HIT WITH SEVERAL OTHER BIG AWARDS THIS YEAR IT COULD MEAN DIFFICULT TIMES FOR IT MR BOWMAN SAID THAT DELOITTE HAS PARTNERS' CAPITAL TOTALING 580 MILLION IN WILTON CONN WHERE DELOITTE IS BASED A SPOKESMAN FOR THE FIRM DECLINED TO COMMENT ON THE JURY'S AWARD AND WHETHER DELOITTE WILL APPEAL DELOITT INHOUSE COUNSEL IN NEW YORK DIDN'T RETURN PHONE CALLS NOR DID THE FIRM'S ATTORNEY IN HOUSTON THE GRANADA PARTNERSHIP WAS SET UP IN 1986 OFFERING INVESTORS A CHANCE FOR A TAX SHELTER IN THE FIRST YEAR FROM THE LOSSES GENERATED BY THE EXPENSE OF PURCHASING AND CARING FOR THE CATTLE AFTER THAT THE SALE OF THE CATTLE WAS SUPPOSED TO GENERATE A RETURN A LITTLE MORE THAN HALF THE INVESTORS PUT UP 5000 AND THE REST MORE MONEY SAID MR GODFREY FOR A TOTAL OF ABOUT 125 MILLION MR GODFREY CONVINCED JURORS THAT WHILE PREPARING TAX RETURNS AND AUDITING THE PARTNERSHIP DELOITTE ACCOUNTANTS REALIZED THERE WEREN'T ANY RECORDS THAT GRANADA REALLY OWNED 900000 HEAD OF CATTLE AT THE TIME THAT THE CATTLE WERE SUPPOSEDLY EATING GRASS IN THE PASTURES THAT WAS NECESSARY TO TAKE THE DEDUCTION AND AVOID AN IRS AUDIT MR GODFREY SAID BUT DELOITTE FILED FOR THE DEDUCTIONS ANYWAY AS DID THE INVESTORS OF THE PARTNERSHIP HE SAID THE IRS BEGAN AN AUDIT OF GRANADA IN 1987 AND DISALLOWED THE PASTURE DEDUCTIONS IN 1991 THE PARTNERSHIP IN EFFECT THE INVESTORS SETTLED WITH THE IRS AND AGREED TO PAY ABOUT 35 MILLION IN BACK TAXES THE IRS ALSO LEVIED PENALTIES OF AT LEAST 26 MILLION DEPENDING ON EACH INVESTORS' TAX CIRCUMSTANCES MR GODFREY SAID EACH MEMBER OF THE CLASS WILL HAVE TO FILE CLAIMS THROUGH AN ADMINISTRATIVE PROCEEDING WHILE THE SIX BIGGEST US ACCOUNTING FIRMS INCLUDING DELOITTE ARE COVERED BY LIABILITY INSURANCE MAINLY FROM LLOYD'S OF LONDON LLOYD'S THIS YEAR SHARPLY BOOSTED DEDUCTIBLES OR PORTIONS OF NEGLIGENCE SETTLEMENTS THE FIRMS MUST FIRM PAY BEFORE GETTING ANY COVERAGE ALSO LLOYD'S LIMITED COVERAGE TO 50 MILLION FOR ALL ANNUAL SETTLEMENTS RATHER THAN 50 MILLION PER NEGLIGENCE AWARD THE BIG SIX HAS SAID THAT LIABILITY CLAIMS AGAINST THEM TOTAL 30 BILLION WHICH EXCEEDS THEIR TOTAL PARTNERS' CAPITAL BY A SIZABLE AMOUNT OVER THE PAST YEAR UMBRELLA SETTLEMENTS OVER FAULTY BANK AND THRIFT AUDITS HAVE BEEN MADE BY ERNST & YOUNG FOR 400 MILLION AND ARTHUR ANDERSEN FOR 65 MILLION KPMG PEAT MARWICK HAD AN OUTOFCOURT SETTLEMENT FOR 75 MILLION LATE LAST YEAR OVER ALLEGATIONS BY BANKAMERICA CORP THAT PEAT WAS NEGLIGENT IN AUDITS OF STUDENT LOAN ACCOUNTS IN CALIFORNIA AND COOPERS & LYBRAND SETTLED A CASE INVOLVING ALLEGEDLY FAULTY AUDITS OF DEFUNCT MINISCRIBE CORP FOR 95 MILLION CAUSING THE FIRM TO ASK PARTNERS FOR MORE CAPITAL 9311030097 931103 COCKROACH DUNDEE HAD A CAREER IN TV ZAPPED BY COMBAT EXTERMINATOR LOST A SPONSOR NOW SITS IN PLANO TEXAS BUGGED BY FLEETING FAME BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL PLANO TEXAS ONCE A MAN HAS TALKED JOHNNY CARSON INTO WALKING A COCKROACH ON A LEASH AND RIDDEN THE TALKSHOW CIRCUIT WITH THREEINCH HISSING MADAGASCAR ROACHES CRAWLING ON HIS CHEST IT'S HARD TO GO BACK TO WORKADAY LIFE IN PLANO FOR MICHAEL BOHDAN THE TAN AND TELEGENIC DALLAS EXTERMINATOR WHO ADOPTED THE MONIKER COCKROACH DUNDEE IT HAS BEEN PARTICULARLY DIFFICULT HE USED TO JET AROUND AMERICA JUDGING BIGBUG CONTESTS SPONSORED BY DEEPPOCKETS CORPORATIONS HE HOBNOBBED WITH STARS ON TVTALK SHOWS HE WAS MENTIONED IN PEOPLE MAGAZINE THEN LAST SUMMER HIS CORPORATE BACKER PULLED THE PLUG ON THE COMPETITIONS AND MR BOHDAN WAS BROUGHT BACK TO EARTH NOW HOME IN HIS SUBURBAN DALLAS STRIPMALL PEST SHOP AMID THE SOUVENIRS AND THE DETRITUS OF CELEBRITY A SIGNED PHOTO OF TV HOST GARY COLLINS AN AQUARIUM FULL OF ROACHES FEEDING ON DOG FOOD A SMALL DISPLAY CASE OF HIS FAVORITE BUG DIORAMAS MR BOHDAN PLOTS HIS RETURN TO THE BIG TIME A BOOK A RADIO SHOW MOVIE WORK I'M GOING THROUGH A METAMORPHOSIS AS AN EXTERMINATOR HE SAYS I NEED SOMETHING MORE IT'S NOT THAT AFTER 18 YEARS THE THRILL OF STALKING THE WILY ARTHROPOD IS GONE MR BOHDAN 46 YEARS OLD SAYS HE HAS ENJOYED A CLOSE PERSONAL RELATIONSHIP WITH COCKROACHES SINCE HIS FIRST SIGNIFICANT CONTACT WITH THEM AS A RESTAURANT INSPECTOR IN CHICAGO 19 YEARS AGO ROACHES HAVE BEEN VERY GOOD TO ME HE SAYS RESTING A REVERENT HAND ON HIS AQUARIUM HE ADDS I LIKE TO JUST SIT HERE AT THE END OF THE DAY AND WATCH THEM SEE HOW THEY TRY TO COMMUNICATE BUT HE LONGS TO RETURN TO THE LIMELIGHT SEVEN YEARS AGO WITH BARNUMLIKE PERSPICACITY MR BOHDAN PARLAYED HIS IDEA OF OFFERING A PRIZE FOR THE BIGGEST COCKROACH IN TEXAS INTO A SHORT FEATURE STORY ON CNN'S HEADLINE NEWS WHICH LED TO AN APPEARANCE ON THE TONIGHT SHOW STARRING JOHNNY CARSON AND AN OFFER FROM AMERICAN CYANAMID CO AT THAT TIME THE MAKER OF COMBAT ROACH KILLER TO TAKE THE CONTEST NATIONAL WITH HIM AS HEAD JUDGE BY LAST YEAR HIS TEXAS ROACH ROUNDUP WHICH GOT OFF THE GROUND WITH A 1000 FIRST PRIZE HAD BECOME A NATIONAL EVENT WITH A 50000 PURSE AND CATEGORIES SUCH AS MOST CREATIVE PRESENTATION OF ROACH ART TINY DIORAMAS WITH ROACHES DRESSED UP AS SAY ELVIS PRESLEY OR MARILYN MONROACH IT WAS A REALLY POSITIVE EXPERIENCE SAYS ABBY ROSS A MIAMI PSYCHOLOGIST WHOSE EIGHTYEAROLD SON BLAKE WON A PRIZE LAST YEAR FOR HIS ROACH PEROT DISPLAY WHICH FEATURED A JUMBO FLORIDA ROACH WITH A PHOTO OF ROSS PEROT'S HEAD EARS AKIMBO ATTACHED TO THE BODY FOR SIX YEARS MR BOHDAN RODE HIS BIGROACH CONTESTS TO DIZZYING MEDIA HEIGHTS APPEARANCES ON THE JOAN RIVERS SHOW TO TELL THE TRUTH AND LIVE WITH REGIS AND KATHY LEE ON HOUR MAGAZINE HE BROUGHT FLY SWATTERS SO HOSTS GARY COLLINS AND DAVID LEISURE COULD PROD THEIR ROACHES ALONG A TABLE TOP TO THE STRAINS OF THE WILLIAM TELL OVERTURE FROM COMEDIAN CHEVY CHASE MR BOHDAN PICKED UP THE TRICK OF CARRYING A BOX OF RUBBER ROACHES HE COULD ACCIDENTALLY SPILL HIS ROACHES WERE FEATURED IN A DISPLAY AT THE SMITHSONIAN INSTITUTION'S INSECT ZOO AND AMERICAN CYANAMID ASKED HIM TO FIELDTEST THE NEWEST BUG KILLERS IN SUCH PLACES AS SEOUL SOUTH KOREA AND MADRID THE PUBLICITY DIDN'T MAKE HIM RICH HE WAS PAID 200 FOR HIS APPEARANCE ON THE TONIGHT SHOW BUT HE HAD BROKEN INTO SHOW BUSINESS THERE WERE COMPANYSPONSORED TRIPS TO LECTURE SALES CREWS AND EAGER INVITATIONS FROM DALLAS SCHOOLS AND HOMEOWNERS' ASSOCIATIONS JUST ABOUT EVERY PUBLIC APPEARANCE BROUGHT IN MORE CUSTOMERS BACK HOME IN PLANO HE SAYS THEN LAST SUMMER COMBAT'S NEW OWNER CLOROX CO PUT AN END TO THE CONTEST AFTER SPONSORING IT ONE LAST TIME IT HAD SERVED ITS PURPOSE THE COMPANY FELT IN PUBLICIZING ITS PRODUCT JUST LIKE THAT MR BOHDAN BECAME PASSE THE ATTENTION AND THE OFFERS DRIED UP THEY JUST MOVED ON HE SAYS FAMOUS NO MORE HE FEARS HIS EXTERMINATION BUSINESS MAY SHRIVEL LIKE A BUG IN A RAID AD I HAVE TO KEEP MY FACE AND MY NAME IN THE TURNPIKE HE SAYS THE NEED HE FEELS TO SKITTER BACK INTO THE SPOTLIGHT HASN'T ENDEARED HIM TO SOME OF HIS PEERS AT A RECENT PESTICIDE TRADE SHOW GROUSES A COMPETITOR MR BOHDAN ELBOWED HIS WAY TO THE FRONT OF A CROWD FOR A RIBBONCUTTING HE SAYS HE DIDN'T DO THAT I'M A NEW BREED OF EXTERMINATOR HE SAYS SOME OF MY PEERS GET JEALOUS EVEN RON SHAPP WHO MADE MR BOHDAN A PARTNER IN HIS BIZZY BEES PEST CONTROL CO IN 1977 SAYS THE BRIGHT LIGHTS JUST WENT TO HIS HEAD AFTER THE FIRST BIGROACH CONTEST TOOK OFF MR SHAPP SAYS THE PARTNERSHIP ENDED AFTER HE ASKED MR BOHDAN TO SET ASIDE THE CONTESTS AND THE TALK SHOWS AND HELP RUN THE BUSINESS IT WASN'T FAIR TO MR SHAPP MR BOHDAN AGREES TO REMAIN A PARTNER WHEN HE WAS ON THE ROAD SO MUCH THE TWO MEN REMAIN FRIENDLY NEITHER CRITICISM NOR SAGGING FORTUNES SEEM TO FAZE MR BOHDAN FRIENDS SAY HE IS LIKE A KID'S PUNCHING BAG THAT BOUNCES BACK UP EVERY TIME IT IS KNOCKED DOWN OBSERVES HIS WIFE SHARON SAYING IT'S A STUPID IDEA WILL NEVER STOP HIM SO THE WOULDBE MARLIN PERKINS OF THE BUG WORLD CONTEMPLATES HIS PROSPECTS HE STILL MAKES OCCASIONAL APPEARANCES ON A LOCAL CHILDREN'S TV SHOW PEPPERMINT PLACE AND TEACHES THE ODD CLASS FOR THE PLANO PARKS AND RECREATION DEPARTMENT ON SAFE PEST CONTROL HE HAS LEFT HIS NAME WITH A DALLAS MOVIE STUDIO FOR POSSIBLE WORK BUGWRANGLING BUT FOR MOVIE WORK HE SAYS YOU HAVE TO KEEP A PRETTY BIG INVENTORY OF BUGS ON HAND MEANWHILE HE HAS LAUNCHED A NEW DIORAMA CONTEST THE FIRST PRIZE IS JUST 300 AND HIS EFFORTS AT PUBLICITY TO DATE HAVE YIELDED JUST A BRIEF SPOT ON A LOCAL TV SHOW AND AN ARTICLE IN THE PLANO STARCOURIER THREE WEEKS INTO THE CONTEST HE STILL AWAITS THE FIRST ENTRY NOT THAT HE IS WORRIED ABOUT IT IT TAKES TIME TO CATCH THEM AND FOR PEOPLE TO CREATE THEIR DISPLAYS HE SAYS HIS WIFE CONCEDES THAT SHE WON'T BE SORRY IF THE CONTEST FLOPS I WAS GLAD SHE SAYS WHEN HER HUSBAND'S STAR FADED HE'S HOME MORE THAT MAY NOT LAST LONG IF MR BOHDAN PULLS OFF HIS LATEST SCHEME TO APPEAR ON THE LATE SHOW WITH DAVID LETTERMAN I COULD DO STUPID ROACH TRICKS HE SAYS HE SCOOPS UP A HANDFUL OF LIVE HISSING MADAGASCAR ROACHES TO DEMONSTRATE THAT WHEN A RINGING PHONE INTERRUPTS HE EXPLAINS TO HIS CALLER THAT THERE ARE BETTER WAYS TO KILL SLUGS THAN TO CRAWL AROUND YOUR GARDEN WITH A SALTSHAKER MEANWHILE A ROACH HEADS ACROSS HIS CHEST WHILE ANOTHER CLAMBERS UP HIS COLLAR HE REDIRECTS IT WITH A FINGER BEFORE IT DISAPPEARS UNDER HIS SHIRT WHEN HE HANGS UP THE PHONE HE BOUNDS EXCITEDLY TO A DISPLAY CASE LABELED COCKROACH MUSEUM HALL OF FAME TO SHOW A VISITOR HIS SECRET WEAPON IN THE LETTERMAN CAMPAIGN REACHING DELICATELY PAST AN IMELDA MARCOS ROACH WHICH SPORTS TINY GOLD SHOES ON FOUR OF HER SIX FEET HE GENTLY PICKS UP A PARTICULARLY BROBDINGNAGIAN DECEASED MADAGASCAR ROACH WITH A PHOTO OF MR LETTERMAN'S GRINNING FACE GLUED ON LONG ROACH ANTENNAE PROTRUDING JAUNTILY FROM THE TEMPLES THIS IS SURE TO GET HIM ON THE SHOW HE BELIEVES AND IF IT DOESN'T WELL THERE'S ALWAYS THE POSSIBILITY OF AN INFOMERCIAL FOR THIS STUFF THAT KILLS BUGS BY DRYING THEM OUT DIATOMACEOUS EARTH HE SAYS CARESSING EACH SYLLABLE WITH HIS VOICE 9311030094 931103 EDS CHAIRMAN SAYS FIRM'S SALE ISN'T EXPECTED BUT ALBERTHAL SAYS GM UNIT IS STILL SEEKING PARTNER IN TELECOMMUNICATIONS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS AFTER HOLDING TALKS WITH SEVERAL TELECOMMUNICATIONS COMPANIES ELECTRONIC DATA SYSTEMS CORP SAID IT ISN'T INTERESTED IN BEING ACQUIRED WE HAVE NO INTEREST IN BEING BOUGHT LESTER M ALBERTHAL CHAIRMAN OF THE GENERAL MOTORS CORP UNIT SAID IN AN INTERVIEW THIS ISN'T AN ASSET THAT YOU CAN JUST WHEEL AND DEAL AND SELL MR ALBERTHAL'S COMMENTS CONTRAST WITH HIS VIEW FOUR MONTHS AGO WHEN HE SAID A SALE OF EDS HADN'T BEEN RULED OUT IN YESTERDAY'S INTERVIEW HE SAID EDS STILL HOPES TO SNAG A TELECOMMUNICATIONS PARTNER PERHAPS THROUGH A JOINT DEVELOPMENT DEAL OR A SMALLER EQUITY PURCHASE IN ORDER TO REMAIN COMPETITIVE IN AN INDUSTRY SUDDENLY FLOODED WITH NEW CORPORATE ALLIANCES A GM SPOKESMAN IN DETROIT DECLINED TO DISCUSS MR ALBERTHAL'S COMMENTS SAYING THE COMPANY DOESN'T TALK ABOUT POTENTIAL DEALS MR ALBERTHAL THOUGH SAID GM AND EDS WHICH PROVIDES A VARIETY OF DATA PROCESSING OUTSOURCING AND CONSULTING SERVICES TO MAJOR CORPORATIONS HOLD THE SAME VIEWS ON THE QUESTION OF AN EDS SALE THIS SPRING GM AND EDS HELD TALKS WITH BRITISH TELECOMMUNICATIONS PLC ABOUT A POSSIBLE STOCK SALE BUT NEGOTIATIONS LATER CRUMBLED AND LAST MONTH WALL STREET WAS ABUZZ WITH TALK ABOUT AMERICAN TELEPHONE & TELEGRAPH CO POSSIBLY BUYING A MAJORITY STAKE IN EDS A DEAL BOTH COMPANIES DECLINED TO DISCUSS WHILE MR ALBERTHAL CONFIRMED HE HAS TALKED TO AT&T AS WELL AS TO NEARLY EVERY OTHER MAJOR TELECOMMUNICATIONS COMPANY ABOUT POSSIBLE ALLIANCES HE SAID NONE OF THOSE TALKS ARE DESIGNED TO TAKE EDS OUT OF GM'S HANDS WE'RE NOT GOING TO DO THAT KIND OF DEAL WITH AT&T BT OR ANYONE ELSE HE SAID MR ALBERTHAL SAID HE FEARS A WHOLESALE PURCHASE OF EDS COULD LIMIT THE COMPANY'S GEOGRAPHIC GROWTH PARTICULARLY IF EDS IS BOUGHT BY A COMPANY THAT DOESN'T HAVE ITS OWN GLOBAL REACH WE CAN'T GET INTO A RELATIONSHIP THAT CONFINES HE SAID MANY ANALYSTS HAVE LONG THOUGHT THAT A GM SALE OF EDS WOULD SERVE BOTH SIDES WELL GM COULD SOLVE MUCH OF ITS CASH NEEDS WITH A SALE OF THE UNIT WHICH GM BOUGHT FOR 25 BILLION IN 1984 THE MARKET VALUE OF GM'S CLASS E STOCK WHICH REPRESENTS A SHARE IN EDS'S EARNINGS BUT NOT EQUITY OWNERSHIP IS CURRENTLY VALUED AT ABOUT 73 BILLION EDS MEANWHILE BADLY NEEDS TO BECOME A PLAYER IN THE MARRIAGE OF THE COMPUTER AND THE TELEPHONE AS ITS BIGGEST CORPORATE CUSTOMERS SCRAMBLE TO INTEGRATE THE TWO THE COMPANY COULD USE LOWCOST ACCESS TO PHONE LINES FOR ITS VAST EXISTING WEB OF CORPORATE COMPUTER NETWORKS MR ALBERTHAL SAID EDS IS MORE LIKELY TO ENGAGE IN A SERIES OF ALLIANCES WITH SEVERAL PLAYERS AS OPPOSED TO ONE MEGADEAL I HAVE TO HAVE A MULTITUDE OF RELATIONSHIPS HE SAID EDS HAS NO INTEREST IN TRADING ONE OWNER FOR ANOTHER 9311030093 931103 LETTERS TO THE EDITOR INSULT TO OUR KIELBASA AS THE BAR AND CONCESSIONS MANAGER OF STEPPENWOLF THEATRE COMPANY I MUST STRENUOUSLY OBJECT TO JOEL HENNING'S RECENT CONTENTION THAT THE KIELBASA SERVED AT INTERMISSION ARE TASTELESS AND STALE LEISURE & ARTS OCT 18 TO THE CONTRARY THEY ARE A CULINARY DELIGHT THAT HAVE BECOME THE DIETARY MAINSTAY OF MANY PATRONS CREW MEMBERS PARKING LOT OPERATORS BAR STAFFERS SECURITY GUARDS AND LIMOUSINE DRIVERS WHO HAVE FREQUENTED STEPPENWOLF THEATRE DURING THE PAST SIX WEEKS WE SERVE A SMOKED VARIETY OF POLISH SAUSAGE KNOWN AS VENDOSA PURCHASED IN AN OLD POLISH NEIGHBORHOOD ON MILWAUKEE AVENUE ON CHICAGO'S NORTHWEST SIDE KRAKUS HOMEMADE SAUSAGE CO THERE IS ALWAYS FULL OF CUSTOMERS AND THOUGH THE TRIP IS ABOUT TWO HOURS OUT OF MY WAY OUR SAUSAGE IS PURCHASED FRESH EVERY THREE DAYS THROUGHOUT THE RUN OF EVELYN AND THE POLKA KING HERE AT STEPPENWOLF THIS THEME SPECIAL HAS BEEN A HIT 9311030092 931103 EVACUATION PLANS READIED FOR SUPPORTERS OF ARISTIDE WASHINGTON THE CLINTON ADMINISTRATION IS MAKING CONTINGENCY PLANS TO HELP EVACUATE SOME KEY BACKERS OF DEPOSED PRESIDENT JEANBERTRAND ARISTIDE FROM HAITI SHOULD THE ALREADY VOLATILE SITUATION THERE DETERIORATE FURTHER FACED WITH A POLITICAL STALEMATE AND ESCALATING VIOLENCE SOME HAITIAN SUPPORTERS OF MR ARISTIDE ARE GROWING INCREASINGLY NERVOUS ACCORDING TO US OFFICIALS THERE IS CONCERN THAT IF CURRENT ATTEMPTS TO REVITALIZE A PLAN TO RESTORE DEMOCRACY IN HAITI FAIL THE SITUATION COULD BECOME HAZARDOUS FOR ARISTIDE SUPPORTERS AS A RESULT SENIOR ADMINISTRATION OFFICIALS ARE FOCUSING ON WHAT STEPS THE US MIGHT TAKE TO AID THESE HAITIANS CURRENTLY THERE ARE US NAVY SHIPS SURROUNDING HAITI AS PART OF AN INTERNATIONAL FORCE THAT IS ENFORCING A UNITED NATIONS EMBARGO OF ARMS AND OIL SHIPMENTS DANTE CAPUTO THE UN SPECIAL REPRESENTATIVE IN HAITI HAS CALLED FOR A MEETING TODAY TO TRY TO REMOVE OBSTACLES THAT ARE BLOCKING THE UNBROKERED PLAN THAT WAS SUPPOSED TO RESULT IN THE RETURN OF REV ARISTIDE LAST SATURDAY HAITIAN MILITARY LEADERS WHO DEPOSED MR ARISTIDE IN A BLOODY COUP IN SEPTEMBER 1991 HAVEN'T RESPONDED TO MR CAPUTO'S INVITATION IF THE MEETING DOESN'T TAKE PLACE IN THE NEXT FEW DAYS IT COULD MEAN THE END OF THE ALREADY DERAILED PEACE PROCESS THAT REV ARISTIDE AND MILITARY LEADERS AGREED TO LAST JULY AT GOVERNORS ISLAND IN NEW YORK 9311030090 931103 ECONOMY NEW HOME SALES CLIMBED 208 FOR SEPTEMBER ACTIVITY HIT HIGHEST LEVEL IN SEVEN YEARS LEADING INDICATORS ROSE BY 05 BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NEW HOME SALES SHOT UP TO THEIR HIGHEST LEVEL IN SEVEN YEARS IN SEPTEMBER THE COMMERCE DEPARTMENT SAID ANOTHER INDICATION THAT LOW INTEREST RATES ARE CONTINUING TO STIMULATE THE ECONOMY HOME SALES SURGED 208 TO A SEASONALLY ADJUSTED 762000 ANNUAL RATE THE DEPARTMENT SAID ALL PARTS OF THE COUNTRY EXCEPT THE NORTHEAST POSTED SIZABLE GAINS THE SEPTEMBER RISE FOLLOWS A 22 DECLINE IN AUGUST THE HOME SALES FIGURES ARE VOLATILE DECLINES IN ONE MONTH ARE OFTEN FOLLOWED BY INCREASES THE NEXT AND THE STATISTICS HAVE A LARGE MARGIN OF ERROR BUT ANALYSTS SAID THAT THE SIZE OF THE SEPTEMBER JUMP SUGGESTS THAT THE HOUSING SECTOR MAY FINALLY BE ON THE MEND STATISTICALLY THE COMMERCE DEPARTMENT SAYS THERE IS A 9IN10 CHANCE THAT THE GROWTH DURING SEPTEMBER FELL SOMEWHERE BETWEEN 7 AND 35 EVEN AT THE LOW END OF THAT THRESHOLD GROWTH WOULD BE PRETTY GOOD DAVID BERSON CHIEF ECONOMIST OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION SAID IT IS BEST TO LOOK AT A QUARTER'S WORTH OF FIGURES TO DETERMINE THE STRENGTH IN HOME SALES FOR THE THIRD QUARTER SALES WERE UP 31 THE MARKET IS CERTAINLY NOT STRONG ENOUGH TO SUSTAIN A 20 PACE BUT PATTERN SUGGESTS THAT THE HOUSING MARKET IS GETTING STRONGER HE SAID THE REPORT IS ENCOURAGING BECAUSE PROLONGED WEAKNESS IN THE RESIDENTIAL HOUSING MARKET HAD CONFOUNDED ECONOMISTS WHO FELT THAT THE LOWEST INTEREST RATES IN A GENERATION SHOULD HAVE DONE MORE TO SPUR HOME SALES AND IT SEEMS THAT THEY FINALLY ARE IN ADDITION TO THE RISE IN NEW HOME SALES DURING SEPTEMBER SALES OF EXISTING HOMES ALSO SHOWED A SIZABLE GAIN HOUSING STARTS ARE UP FROM LAST YEAR AND DURING THE THIRD QUARTER RESIDENTIAL INVESTMENT GAVE THE ECONOMY A SIGNIFICANT BOOST OTHER SECTORS SENSITIVE TO INTEREST RATES SUCH AS CONSUMER DURABLE GOODS AND CAPITAL EQUIPMENT ALSO HELPED FUEL THE ECONOMY SEPARATELY THE COMMERCE DEPARTMENT SAID ITS INDEX OF LEADING INDICATORS DESIGNED TO GAUGE THE FUTURE HEALTH OF THE ECONOMY ROSE 05 IN SEPTEMBER SUGGESTING CONTINUED MODEST GROWTH INTO 1994 THE RISE COMES ON TOP OF A REVISED 09 GAIN IN AUGUST AND NO CHANGE IN JULY SIX OF THE 11 INDICATORS THAT MAKE UP THE INDEX CONTRIBUTED TO ITS RISE THEY WERE THE MONEY SUPPLY ORDERS MADE BY MANUFACTURERS FOR CONSUMER GOODS AND MATERIALS BUILDING PERMITS STOCK PRICES CONSUMER EXPECTATIONS AND THE CHANGE IN MANUFACTURERS' UNFILLED ORDERS OF DURABLE GOODS THE INDICATORS WHICH WEIGHED DOWN THE INDEX WERE VENDOR PERFORMANCE CONTRACTS AND ORDERS FOR PLANT AND EQUIPMENT WEEKLY CLAIMS FOR STATE UNEMPLOYMENT INSURANCE AND SENSITIVE MATERIALS PRICES THE AVERAGE WORKWEEK WAS UNCHANGED ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE NET CONTRIBUTIONS OF THE COMPONENTS OF THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS AFTER VARIOUS ADJUSTMENTS THEY PRODUCED A 05 INCREASE IN THE INDEX FOR SEPTEMBER AND A 09 INCREASE FOR AUGUST THE SEASONALLY ADJUSTED INDEX NUMBERS 1982=100 FOR SEPTEMBER AND THE CHANGE FROM AUGUST ARE THE RATIO OF COINCIDENT TO LAGGING INDICATORS WAS 123 UNCHANGED FROM 123 IN AUGUST 9311030089 931103 BUSINESS BRIEF MITEK SURGICAL PRODUCTS INC FDA APPROVES NEW DEVICE TO REPAIR KNEE LIGAMENT MITEK SURGICAL PRODUCTS INC NORWOOD MASS SAID IT RECEIVED FOOD AND DRUG ADMINISTRATION AUTHORIZATION TO MARKET A NEW SURGICAL ANCHOR TO REPAIR A KNEE LIGAMENT OFTEN DAMAGED IN SPORTS THE NEW ANCHOR IS A TITANIUMBASED IMPLANT USED TO REATTACH THE ANTERIOR CRUCIATE LIGAMENT TO BONE THE SURGICAL PRODUCTS COMPANY SAID THE RECONSTRUCTION RESTORES FUNCTIONAL STABILITY TO THE LIGAMENT THE COMPANY ALSO SELLS DEVICES FOR SURGERIES ON OTHER LIGAMENTS AND TENDONS MITEK PLANS AN EDUCATION INITIATIVE TO INFORM DOCTORS ABOUT THE PRODUCT THE COMPANY SAYS THE ANCHOR SPEEDS RECOVERY AND REDUCES TISSUE TRAUMA MITEK SHARES CLOSED AT 25 UP 2 OR 87 IN NASDAQ STOCK MARKET TRADING 9311030088 931103 INTERNATIONAL OLIVETTI CHIEF SURRENDERS MAGISTRATES BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN CARLO DE BENEDETTI CHAIRMAN OF ING C OLIVETTI & CO AND ONE OF ITALY'S BESTKNOWN INDUSTRIALISTS TURNED HIMSELF IN YESTERDAY FOUR DAYS AFTER POLICE ISSUED A WARRANT FOR HIS ARREST ON ALLEGATIONS OF CORRUPTION MR DE BENEDETTI WAS HELD FOR QUESTIONING AT REGINA COELI JAIL IN ROME AND THEN RELEASED TO HOUSE ARREST PROSECUTORS' TREATMENT OF MR DE BENEDETTI HAS PROMPTED CONCERN ABOUT HIS COMPANY'S FUTURE AND CRITICISM OF MAGISTRATES' INVESTIGATING TACTICS ROME MAGISTRATES ALLEGE THAT OLIVETTI PAID 106 BILLION LIRE 65 MILLION IN BRIBES TO GOVERNMENT OFFICIALS TO WIN STATE CONTRACTS LAST MAY MR DE BENEDETTI VOLUNTARILY ADMITTED THE COMPANY PAID KICKBACKS STRESSING THAT IT WAS DE RIGUEUR IN ITALIAN BUSINESS AT THE TIME INVESTIGATORS DECIDED IT WASN'T NECESSARY TO ARREST HIM MAGISTRATES BUT THE CASE WAS TRANSFERRED TO ROME THIS SUMMER AND MAGISTRATES THERE INSIST THAT THEY NOT ONLY HAVE NEW EVIDENCE BUT THAT MR DE BENEDETTI'S ARREST WAS NECESSARY TO PREVENT HIM FROM COMMITTING SIMILAR CRIMES IN HER ARREST WARRANT EXCERPTS OF WHICH WERE LEAKED TO THE PRESS YESTERDAY JUDGE MARIA CORDOVA SAID MR DE BENEDETTI DIDN'T ADMIT EVERYTHING TO MILAN PROSECUTORS AND ACTIVELY SOLICITED BUSINESS THROUGH BRIBERY FROM 1983 TO 1991 THE REPEATED ILLEGAL BEHAVIOR SINCE AT LEAST 1983 LEADS TO A CONCLUSION THAT HE IS A DANGER TO SOCIETY THE WARRANT SAID MS CORDOVA SAID OLIVETTI SUPPLIED THE POST MINISTRY WITH FAULTY AND OBSOLETE EQUIPMENT AT BLOATED PRICES THAT BENEFITED THE COMPANY SHE ARGUED THAT HE WAS THUS AN ACCOMPLICE IN BRIBERY A MORE SERIOUS CHARGE THAN BEING A VICTIM OF POLITICAL EXTORTION AS HE HAS ARGUED MR DE BENEDETTI'S LAWYERS INSIST THAT THE CHARGES AGAINST HIM ARE THE SAME AS THOSE HE HAS ALREADY ADMITTED THEY WARN THAT SUCH HARSH TREATMENT OF BUSINESSMEN COOPERATING IN THE COUNTRYWIDE CORRUPTION SCANDALS COULD JEOPARDIZE FURTHER COOPERATION BY OTHERS INDEED THE ARREST WARRANT DIDN'T DETAIL ANY EPISODES OF KICKBACKS THAT MR DE BENEDETTI HADN'T ALREADY ADMITTED IN A DEPOSITION LAST SPRING OLIVETTI SHARES SLIDE 39 OLIVETTI SHARES FELL AN INITIAL 5 ON THE NEWS YESTERDAY RECOVERING LATER TO CLOSE DOWN 39 TO 1739 LIRE ON THE MILAN STOCK MARKET ANALYSTS SAID THAT DAYTODAY MANAGEMENT OF OLIVETTI SHOULDN'T BE AFFECTED BY HIS ARREST HOWEVER LONGTERM STRATEGY AND CONTRACTS COULD BE AFFECTED SHOULD HE FACE NEW CHARGES THEY SAID A SPOKESMAN FOR DIGITAL EQUIPMENT CORP WHICH HOLDS A 10 STAKE IN OLIVETTI AND BEGAN A GLOBAL ALLIANCE WITH THE ITALIAN COMPANY IN 1992 SAID THE PARTNERSHIP WON'T BE AFFECTED BY THE CHAIRMAN'S ARREST THE DIGITAL RELATIONSHIP IS WITH OLIVETTI NOT WITH MR DE BENEDETTI HE SAID MR DE BENEDETTI'S ARREST PROVOKED AN OUTCRY BY SOME LABOR POLITICAL AND RELIGIOUS LEADERS OVER WHETHER SUCH ACTIONS BY MAGISTRATES ARE NECESSARY FOR THOSE WHO ARE ALREADY VOLUNTEERING INFORMATION IN THE SCANDAL AS ITALY'S EPIC CORRUPTION INVESTIGATIONS DRAG INTO THEIR 21ST MONTH MORE THAN 3000 PEOPLE HAVE BEEN IMPLICATED IN THE BRIBERYKICKBACK PROBE BUT ONLY A HANDFUL HAVE COME TO TRIAL AS A RESULT MOST REMAIN IN A STATE OF LEGAL LIMBO WITH THEIR REPUTATIONS RUINED BUSINESS LEADERS HAVE NOTED THAT NONE OF THE TOP POLITICIANS IMPLICATED IN THE SCANDAL HAS BEEN JAILED BECAUSE THEY ARE PROTECTED BY PARLIAMENTARY IMMUNITY 9311030087 931103 COMMODITIES TRADER ASSOCIATES RECEIVE FINES OF 22 MILLION CHICAGO THE COMMODITY FUTURES TRADING COMMISSION FINED MEMPHIS TENN LIVESTOCK TRADER CHARLES MCVEAN 875000 FOR ALLEGED TRADING VIOLATIONS AT THE CHICAGO MERCANTILE EXCHANGE IT WAS THE BIGGEST PENALTY LEVIED AGAINST AN INDIVIDUAL COMMODITY TRADER SINCE THE HUNT BROTHERS WERE FINED 10 MILLION EACH AFTER ALLEGEDLY TRYING TO CORNER THE US SILVER MARKET IN THE LATE 1970S SAID DENNIS KLEJNA CHIEF OF THE CFTC'S ENFORCEMENT DIVISION THE FINE IS AMONG 22 MILLION IN PENALTIES MR MCVEAN AND FIVE OF HIS ASSOCIATES WILL PAY TO SETTLE A CFTC CIVIL COMPLAINT THE COMPLAINT ALLEGES THAT FROM JANUARY 1990 TO DECEMBER 1991 MR MCVEAN'S FIRM MCVEAN TRADING & INVESTMENTS ENGAGED IN A REGULAR PRACTICE OF VIOLATING SPECULATIVE POSITION LIMITS FIXED BY THE CME IN TRADING OF CATTLEFUTURES CONTRACTS MR MCVEAN AND HIS ASSOCIATES NEITHER ADMITTED NOR DENIED THE ALLEGATIONS IN THE CFTC COMPLAINT WE HAVE MADE AN ECONOMIC DECISION TO SETTLE THIS EXPENSIVE AND TIMECONSUMING DISPUTE MCVEAN TRADING SAID IN A STATEMENT WE RECOGNIZE NO WRONGDOING IN A STATEMENT YESTERDAY THE CME SAID MCVEAN TRADING HAD USED CUSTOMER ACCOUNTS TO SPREAD OUT POSITIONS THEREBY MISLEADING BOTH THE CME AND CFTC INTO BELIEVING THAT THESE POSITIONS WERE CONTROLLED BY INDIVIDUALS IN INDIVIDUAL ACCOUNTS WHEN THEY WERE NOT ARTHUR HAHN AN ATTORNEY FOR MR MCVEAN AND MCVEAN TRADING SAID THE FIRM FILED REPORTS IT BELIEVED ACCURATELY PORTRAYED THE CONTROL OF THE POSITIONS 9311030086 931103 US PROBES S&L LOANS AND '85 CHECK TO CLINTON WASHINGTON FEDERAL INVESTIGATORS ARE LOOKING INTO THE POSSIBLE DIVERSION OF MORE THAN 250000 IN BUSINESS LOANS FROM AN ARKANSAS THRIFT INCLUDING FUNDS CONTRIBUTED TO PRESIDENT CLINTON'S 1984 REELECTION CAMPAIGN FOR GOVERNOR THE SIZE OF THE POSSIBLE DIVERSION BEING INVESTIGATED BY THE RESOLUTION TRUST CORP AND FEDERAL PROSECUTORS WAS REPORTED BY THE NEW YORK TIMES THE INQUIRY IS PART OF A LARGER INVESTIGATION OF MADISON GUARANTY SAVINGS & LOAN A LITTLE ROCK ARK THRIFT OWNED BY CLINTON FRIEND AND BUSINESS ASSOCIATE JAMES MCDOUGAL UNTIL IT FAILED IN 1989 AND WAS TAKEN OVER BY THE RTC THE WHITE HOUSE CONFIRMED THAT THE CLINTON GUBERNATORIAL CAMPAIGN RECEIVED A 3000 PERSONAL CHECK FROM MR MCDOUGAL IN APRIL 1985 AT THE TIME THE CAMPAIGN WAS TRYING TO RETIRE 1984 CAMPAIGN DEBTS WE WOULD HAVE NO REASON TO KNOW OR QUESTION THE SOURCE OF FUNDS FOR THAT CHECK SAID SENIOR WHITE HOUSE AIDE BRUCE LINDSEY IN 1978 MR MCDOUGAL AND HIS WIFE SUSAN INVESTED WITH BILL AND HILLARY RODHAM CLINTON IN AN OZARK MOUNTAINS REALESTATE VENTURE WHICH WAS TRANSFERRED TO THE COUPLES' JOINTLY OWNED WHITEWATER DEVELOPMENT CORP THE MONEYLOSING CORPORATION'S DEALINGS WITH MADISON GUARANTY ALSO ARE BEING SCRUTINIZED BY FEDERAL INVESTIGATORS THE MCDOUGALS COULDN'T BE REACHED IMMEDIATELY FOR COMMENT 9311030085 931103 LETTERS TO THE EDITOR NATIONALIZATION GOAL OF CLINTON HEALTH PLAN IN HIS OCT 12 EDITORIALPAGE ESSAY TOO CLEVER BY HALF IRVING KRISTOL MAKES A FASCINATING CASE THAT THE CLINTON HEALTH PLAN FORCES RATIONING DECISIONS ONTO PRIVATE SECTOR PROVIDERS TO INSULATE THE GOVERNMENT FROM THIS HOT POTATO HE'S PROBABLY RIGHT BUT RATIONING WOULD BE ONLY COLLATERAL DAMAGE COMPARED WITH THE PLAN'S DIRECT HIT ON THE INDUSTRY'S STRUCTURE LIKE THE MIXED SOCIALIST ECONOMIES THAT INSPIRED IT THE CLINTON HEALTH PLAN IS SO RIDDLED WITH CONTRADICTIONS THAT EVEN IF IMPLEMENTED UNTOUCHED IT COULD HARDLY LAST THE DECADE THE TWIN POLITICAL IMPERATIVES OF EVEREXPANDING BENEFITS AND EVERTIGHTER BUDGET CAPS PREORDAIN THAT PRIVATE SECTOR PROVIDERS BE COERCED INTO OFFERING BELOWCOST SERVICES UNTIL THEIR CAPITAL IS CONSUMED THEN THEIR LOOTED CORPORATE SHELLS CAN BE DEEDED OVER TO THE GOVERNMENT FOR A NOMINAL SUM UNDER A PUBLIC NECESSITY RATIONALE THE PUBLIC FORMERLY PRIVATE TRANSIT INDUSTRY OFFERS A MODEL OF THE PROCESS THE STREETCARS SUBWAYS AND BUSES WERE DRIVEN INTO BANKRUPTCY BY POLITICIZED FARE REGULATION ADDING INSULT TO INJURY THEIR NEW GOVERNMENT OWNERS THEN HIKED TAXES AND FARES DRAMATICALLY TO PAY FOR DEFERRED MAINTENANCE PAD THE PAYROLLS AND EXPAND THEIR EMPIRES IMAGINE YOUR LOCAL HOSPITAL BEING RUN BY THE TRANSIT AUTHORITY MOST OF THE OCEAN OF INK SPILLED OVER THE CLINTON HEALTH PLAN MISSES THE MARK BECAUSE IT CREDULOUSLY ADDRESSES THE BLOWING SMOKE RATHER THAN ITS OBSCURED BUT INEVITABLE DESTINATION THE NATIONALIZATION OF AMERICAN HEALTH CARE IN THE EARLY 21ST CENTURY MR KRISTOL STATES THE RELATION BETWEEN EXPENSIVE MEDICAL TECHNOLOGY AND PROBABLE RISK AS PERCEIVED BY THE PATIENT VIOLATES ALL THE CANONS OF ECONOMIC RATIONALITY IF YOUR WIFE OR CHILD SHOWS SYMPTOMS OF A BRAIN TUMOR AND THE XRAYS ARE NEGATIVE HOW DO YOU FEEL ABOUT A CAT SCAN THAT CAN PICK UP THE 1 OF THE TUMORS THAT XRAYS MISS I DON'T KNOW WHERE MR KRISTOL GETS HIS DATA BUT HIS STATEMENT IS CATEGORICALLY FALSE BRAIN TUMORS CANNOT BE DIAGNOSED BY PLAIN XRAYS THE DIAGNOSIS IS MADE ONLY BY A CAT OR MAGNETIC RESONANCE MRI SCAN IF A PHYSICIAN TOOK PLAIN XRAYS OF THE SKULL ON A PATIENT AND DECLARED THAT HE WAS TUMORFREE BASED ON THOSE STUDIES I WOULD CONSIDER THAT ACTIPRACTICE A GOOD HISTORY AND PHYSICAL BY A PHYSICIAN CAN SCREEN MANY PEOPLE FOR A BRAIN TUMOR ADEQUATELY BUT IF THERE IS A SUGGESTION THAT A TUMOR IS PRESENT A CAT OR MRI SCAN IS NECESSARY CATSCANNING IS ARGUABLY THE SINGLE MOST REVOLUTIONARY DEVELOPMENT IN DIAGNOSIS IN THE FIELD OF MEDICINE EVER ITS UTILITY CANNOT BE OVERESTIMATED BY THOSE OF US WHO USE THIS TECHNOLOGY ON A DAILY BASIS WHAT WILL BE OVERESTIMATED BY THE UNINFORMED AND THE ANOINTED IS HOW OFTEN THIS VITAL TECHNOLOGY WILL BE ALLOWED UNDER HILLARYCARE 9311030084 931103 MANAGING YOUR CAREER BY TONY LEE AS WORK PRESSURES RISE AN OVERLY COMPETITIVE COLLEAGUE IS MORE LIKELY TO STAB YOU IN THE BACK NOWADAYS PEOPLE SEEM INCLINED TO STAB BEFORE THEY GET STABBED THEMSELVES SAYS DOUGLAS RICHARDSON A LAWYER AND CAREER COUNSELOR IN BALACYNWYD PA IN SUCH A CUTTHROAT CLIMATE THE ABILITY TO PROTECT YOURSELF BECOMES A CRITICAL SURVIVAL SKILL YOU MAY FEEL POWERLESS TO WITHSTAND COVERT DECEIT ESPECIALLY SINCE IT IS HARD TO ANTICIPATE BUT YOU CAN TAKE STEPS TO PRESERVE YOUR REPUTATION AND YOUR JOB COUNSELORS SAY TACTICS RANGE FROM KEEPING YOUR NOSE CLEAN TO BUILDING STRONG RELATIONSHIPS WITH COWORKERS AND IF NECESSARY CONFRONTING YOUR ACCUSER UNEMPLOYMENT LINES ARE FILLED WITH VICTIMS OF BACKSTABBING WHO DID LITTLE TO PROTECT THEMSELVES TWO SUBORDINATES OF A CHICAGO PUBLISHING EXECUTIVE DISLIKED HIM SO MUCH THAT THEY PLANTED FALSE STORIES ABOUT HIS POOR JUDGMENT AND INABILITY TO MAKE DECISIONS SOON AFTER THE COMPANY ASKED THE EXECUTIVE TO RESIGN HIS REPUTATION SHATTERED HE SWITCHED INDUSTRIES AFTER JOB HUNTING FOR FIVE MONTHS HE FINALLY TOOK A PAY CUT TO BECOME A CONSULTANT FOR A LOCAL FINANCIALSERVICES CONCERN BACKSTABBING TAKES MANY FORMS FROM RUMOR MONGERING TO SECRET BUT EXCESSIVELY HARSH CRITICISM CONSIDER WILFRED KWOK A FORMER DIVISION MANAGER FOR A DEFENSE CONTRACTOR IN NORTHERN CALIFORNIA MR KWOK SAYS HE TURNED AROUND AN UNPROFITABLE DIVISION OVER A SIXMONTH PERIOD EARNING HIMSELF A HEFTY BONUS A NEW BOSS HIRED FROM THE OUTSIDE THEN DECIDED TO REORGANIZE THE DIVISION THE BOSS SUGGESTED SEVERAL PLUM ASSIGNMENTS WHERE MR KWOK COULD EARN NEW DISTINCTION YET BEHIND HIS BACK THE BOSS UNJUSTIFIABLY CRITICIZED THE DIVISION MANAGER'S SKILLS TO SENIOR MANAGEMENT ACCORDING TO MR KWOK ONE DAY HE CALLED ME IN AND CANNED ME VERY IMPERSONALLY AFTER 25 YEARS WITH THE COMPANY THE 58YEAROLD MR KWOK SAYS I DON'T THINK HE EVER LIKED ME OR UNDERSTOOD WHAT I DID BEFORE DECIDING THAT HE DIDN'T NEED ME ANYMORE THERE'S NO SUREFIRE WAY TO DEFEND YOURSELF AGAINST AN UNSCRUPULOUS BACKSTABBER OF COURSE THE BEST ADVICE IS TO BE MR OR MS CLEAN HAVE A RECORD THAT'S IMPERVIOUS TO ACCUSATIONS SAYS ANDREW DUBRIN A PROFESSOR AT NEW YORK'S ROCHESTER INSTITUTE OF TECHNOLOGY AND AUTHOR OF SEVERAL BOOKS ABOUT OFFICE POLITICS BUILDING STRONG RELATIONSHIPS WITH COWORKERS CAN BE AS IMPORTANT AS HANDLING YOUR ASSIGNED DUTIES WELL IF YOU COME UNDER SURREPTITIOUS ATTACK LOYAL COLLEAGUES CAN WARN YOU AND THEN RALLY BEHIND YOU IN THE BOSS'S OFFICE ADVISES ARLENE HIRSCH A CHICAGO PSYCHOTHERAPIST AND CAREER COUNSELOR YOU CAN RECOVER ON YOUR OWN FROM A KNIFE IN THE BACK CAREER SPECIALISTS SAY BUT THAT APPROACH REQUIRES A CALM TEMPERAMENT AND PLENTY OF SELFESTEEM CONFRONTING THE BACKSTABBER IS OFTEN NECESSARY IF YOUR REPUTATION IS BEING SULLIED YOU MUST HAVE THE COURAGE TO DEFEND YOUR PERFORMANCE DR DUBRIN SAYS BACKSTABBERS ARE OFTEN INSECURE ABOUT THEIR JOBS HE NOTES SO A FRANK DISCUSSION OF HOW YOU CAN HELP THEM IN EXCHANGE FOR THEIR SUPPORT MAY PAY OFF FOR YOU MS HIRSCH CITES THE EXAMPLE OF A CHICAGO RETAILSTORE MANAGER WHOSE CAREER WAS BEING SQUASHED BY HER NEW SUPERVISOR'S SUBTLE NEGATIVE MESSAGES THE BOSS WAS A LITTLE INSECURE TO PROTECT HERSELF SHE WAS MAKING IT KNOWN THAT THE STORE MANAGER LACKED CREATIVE SKILLS AND WASN'T SHARP ENOUGH TO EARN A PROMOTION TO DISTRICT MANAGER THE BOSS'S LEVEL THE CAREER COUNSELOR EXPLAINS WHEN THE STORE MANAGER HEARD ABOUT THOSE UNFOUNDED ACCUSATIONS SHE CONFRONTED HER BOSS AND SAID VERY CALMLY I UNDERSTAND THAT YOU'RE SENDING THIS MESSAGE AND WHILE I HEAR YOUR OPINION I DON'T AGREE WITH IT SHE THEN OUTLINED HER ACCOMPLISHMENTS AND ASPIRATIONS SURPRISED BY HER SUBORDINATE'S RESOLVE THE DISTRICT MANAGER RECONSIDERED AND RECOMMENDED HER FOR AN EXPANDED ROLE THAT WOULD LEAD TO A DISTRICT MANAGER'S SLOT IN FACT THE BOSS ACTUALLY BECAME HER MENTOR MS HIRSCH CONTINUES BY HANDLING THE SITUATION PROFESSIONALLY THE STORE MANAGER GARNERED NEWFOUND RESPECT DESPITE YOUR BEST EFFORTS BEING BACKSTABBED COULD LEAD TO A PINK SLIP IF THAT'S THE CASE DON'T LET THE NASTY EXPERIENCE INFLUENCE YOUR CONDUCT DURING A JOB SEARCH CAUTIONS JOE MEISSNER PRESIDENT OF POWER MARKETING A SAN FRANCISCO OUTPLACEMENT FIRM SHAKE IT OFF AND MOVE ON HE ADVISES PLOTTING REVENGE OR MALIGNING YOUR FORMER COMPANY IS SELFDESTRUCTIVE AND GUARANTEES AN EXTENDED JOB HUNT MR MEISSNER NOTES POTENTIAL EMPLOYERS WILL LABEL YOU A MALCONTENT OR WORSE AS DESERVING OF YOUR FATE YOU'VE GOT TO EXORCISE ANY NEGATIVITY BY REFRAMING THE EPISODE INTO A POSITIVE LEARNING EXPERIENCE MR MEISSNER RECOMMENDS INTERVIEWERS WANT TO KNOW WHETHER YOU CAN BOUNCE BACK FROM A SEVERE CAREER BLOW EVEN ONE AS PAINFUL AS A STAB IN THE BACK 9311030083 931103 BUSINESS BRIEF NORTHEAST UTILITIES NEW HAMPSHIRE UNIT PLANS TO BUY OUT FOUR CONTRACTS PUBLIC SERVICE CO OF NEW HAMPSHIRE PLANS TO PAY BETWEEN 120 MILLION AND 130 MILLION TO BUY OUT LONGTERM CONTRACTS WITH FOUR WOODFIRED ENERGY PLANTS A PERSON CLOSE TO THE TRANSACTION SAID THE MANCHESTER NH ELECTRIC UTILITY SAID THE AGREEMENT WOULD SAVE THE COMPANY ABOUT 150 MILLION OVER THE NEXT DECADE THROUGH CHEAPER POWER COSTS THE CONTRACTS CALLED FOR PUBLIC SERVICE TO PURCHASE POWER AT ABOUT 11 CENTS A KILOWATTHOUR FROM THE WOODFIRED PLANTS BUT MARKET PRICES CURRENTLY HOVER AT LESS THAN THREE CENTS A KILOWATTHOUR PUBLIC SERVICE A UNIT OF NORTHEAST UTILITIES OF HARTFORD CONN SAID THE EXPENSIVE CONTRACTS STEM FROM FEDERAL AND STATE REGULATIONS ADOPTED IN THE LATE 1970S TO ENCOURAGE THE DEVELOPMENT OF ALTERNATIVE DOMESTIC SOURCES OF ENERGY 9311030078 931103 ABREAST OF THE MARKET INDUSTRIALS RISE 503 TO A RECORD BUT MOST STOCKS FALL ON RATE FEARS BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK BLUE CHIPS INCHED TO A RECORD FOR A SECOND STRAIGHT DAY BUT INTEREST RATE JITTERS LEFT MOST STOCKS LOWER POSITIVE READINGS FROM THE COMMERCE DEPARTMENT ON ITS INDEX OF LEADING ECONOMIC INDICATORS AND ON NEW SINGLEFAMILY HOME SALES SENT CYCLICAL STOCKS GALLOPING HIGHER THAT STRENGTH COMBINED WITH A GAIN OF 3 1/8 OR 65 TO 50 7/8 IN INTERNATIONAL BUSINESS MACHINES CARRIED THE DOW JONES INDUSTRIAL AVERAGE TO A GAIN OF 503 TO 369764ITS FOURTH HIGH IN SEVEN SESSIONS POSITIVE REMARKS FROM A DONALDSON LUFKIN & JENRETTE ANALYST WERE SAID TO LIFT IBM SHARES WHICH HADN'T REACHED 50 SINCE LATE JUNE THE SECURITIES COMPANY WAS SAID TO HAVE RAISED EARNINGS ESTIMATES FOR BIG BLUE DONALDSON LUFKIN WOULDN'T COMMENT ON ITS ANALYST'S MOVE THE ECONOMIC NEWS THE LATEST IN A STRING OF ENCOURAGING REPORTS THOUGH TOPPLED THE BOND MARKET THE 30YEAR TREASURY LOST 3/8 POINT LIFTING ITS YIELD TO 606 THE LONG BOND WAS DOWN MORE THAN 1 1/4 AT ONE POINT YESTERDAY MORNING THE DOW JONES INDUSTRIALS HAD TUMBLED ALONG WITH BONDS IN THE MORNING LOSING AS MANY AS 25 POINTS AT ITS WORST LEVELS AS BIG BOARD SHARES WERE BUFFETED BY PROGRAM SELLING BUT WHILE THE AVERAGE CLAWED ITS WAY BACK OVER THE REST OF THE DAY BROADBASED INDEXES COULDN'T KEEP PACE THE STANDARD & POOR'S 500STOCK INDEX LOST 066 TO 46844 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 047 TO 25947 AND THE DOW JONES EQUITY MARKET INDEX EASED 073 TO 44334 THE NASDAQ COMPOSITE INDEX INCHED UP 189 TO 78566 TECHNOLOGY AND HEALTHCARE ISSUES HELPED TO BUOY THAT MARKET BAROMETER THE RUSSELL 2000 INDEX OF SMALL STOCKS MEANWHILE HIT A RECORD OF 26017 UP 067 MOST OF THE BIG BOARD'S STRENGTH THOUGH WAS IN CYCLICALS SETTING THAT IN MOTION THE COMMERCE DEPARTMENT SAID ITS INDEX OF LEADING INDICATORS WAS UP 05 IN SEPTEMBER SEPARATELY IT SAID NEW SINGLE FAMILY HOME SALES SURGED 208 THAT MONTH THE ECONOMY LOOKS LIKE IT WILL BE A BIT BETTER IN THE FOURTH QUARTER AND INVESTORS ARE TAKING THAT TO MEAN THAT EARNINGS FOR CYCLICAL COMPANIES WILL BE ACCELERATING SAID STEVEN EINHORN MARKET STRATEGIST AT GOLDMAN SACHS BIG GAINERS INCLUDED UNITED TECHNOLOGIES WHICH ROSE 1 3/8 TO 63 1/8 INTERNATIONAL PAPER WHICH ADDED 7/8 TO 62 5/8 AND GENERAL MOTORS WHICH INCREASED 3/4 TO 49 THE MORGAN STANLEY CYCLICAL STOCK INDEX ADVANCED 233 TO 29231 WHILE THE GAINS IN MARKET INTEREST RATES WORRIED MANY INVESTORS MR EINHORN SAID HE EXPECTS RATES TO STABILIZE BEFORE THEY REACH THE HEIGHTS THAT WOULD TRIGGER A SELLOFF IN STOCKS HE EXPECTS ECONOMIC ACTIVITY TO EASE SOME IN THE 1994 FIRST QUARTER ALLOWING BONDS TO RECOVER AND CLEARING THE WAY FOR A MORE BROADBASED ADVANCE IN EQUITY PRICES MEANWHILE MERRILL LYNCH ADVISED INVESTORS TO SELL SOME OF THEIR BOND HOLDINGS AND USE THE PROCEEDS TO BUY STOCKS IT RAISED THE STOCK PORTION OF ITS BENCHMARK ASSETALLOCATION RECOMMENDATION TO 60 FROM 55 AND CUT THE BOND PORTION TO 30 FROM 35 THE CASH RECOMMENDATION WAS LEFT AT 10 THE SWITCH WAS THE BROKERAGE FIRM'S FIRST IN NEARLY A YEAR FOR THE BENCHMARK ALLOCATION WHICH IS DESIGNED FOR USE PRIMARILY BY INDIVIDUAL INVESTORS FORESTPRODUCTS STOCKS SURGED FOR A SECOND DAY A TRADE GROUP REPORT SHOWING RISING LUMBER PRICES HAD HELPED THE GROUP MONDAY GEORGIAPACIFIC ADDED 1 3/8 TO 68 WEYERHAEUSER JUMPED 1 3/8 TO 42 AND ON THE NASDAQ STOCK MARKET WILLAMETTE INDUSTRIES INCREASED 1 3/4 TO 44 1/2 PACIFIC TELESIS CLIMBED 4 7/8 TO 59 1/8 AFTER THE BABY BELL WON APPROVAL FROM CALIFORNIA REGULATORS TO DIVEST ITS WIRELESS COMMUNICATIONS BUSINESS THE SAN FRANCISCO COMPANY PLANS TO SPIN OFF 88 OF THE PAGING AND CELLULAR TELEPHONE SERVICES OPERATIONS TO SHAREHOLDERS AND SELL THE REMAINING 12 THROUGH AN INITIAL PUBLIC OFFERING WALMART ADDED 7/8 TO 27 AFTER THE BENTONVILLE ARK COMPANY AGREED TO BUY 91 PACE WAREHOUSE CLUB STORES FROM KMART TERMS WEREN'T DISCLOSED KMART BASED IN TROY MICH SAID IT WILL CLOSE ITS PACE LOCATIONS THAT AREN'T COVERED BY THE WALMART PACT AND TAKE A PRETAX CHARGE OF 450 MILLION ITS SHARES GAINED 1/8 TO 24 7/8 US HEALTHCARE ADDED 1 TO 50 1/2 ON NASDAQ THE BLUE BELL PA HEALTH MAINTENANCE ORGANIZATION OPERATOR EXPECTS TO RECEIVE AN AVERAGE 5 RATE INCREASE FOR 1994 FROM STATE REGULATORS IN NEW YORK IT SAID A STATE COURT STAYED A DECISION BY THE NEW YORK INSURANCE DEPARTMENT THAT WOULD HAVE GIVEN IT A 39 REDUCTION NEW YORK MIGHT STILL APPEAL TRIBUNE CO ADDED 3/8 TO 56 AND TIME WARNER INCHED UP 1/8 TO 44 3/4 THE COMPANIES DISCLOSED PLANS TO LAUNCH A TELEVISION NETWORK LAST MONTH PARAMOUNT COMMUNICATIONS AND CHRISCRAFT INDUSTRIES DISCLOSED SIMILAR PLANS THAT NETWORK WOULD BEGIN OPERATIONS IN JANUARY 1995 PARAMOUNT COMMUNICATIONS WAS DOWN 5/8 TO 79 1/8 AND CHRISCRAFT WAS OFF 3/8 TO 41 1/4 MIRAGE RESORTS EASED 1/8 TO 22 5/8 ON HEAVY VOLUME OF 52 MILLION SHARES A PUBLIC OFFERING OF 125 MILLION SHARES OF THE LAS VEGAS CAPANY WAS MADE AT 2280 EACH THE STOCK WAS SPLIT 25FOR1 EFFECTIVE MONDAY GREAT WESTERN FINANCIAL INCREASED 1 3/8 TO 20 3/8 ON HEAVY VOLUME OF NINE MILLION SHARES THE ACTIVITY WAS SAID TO BE TIED TO DIVIDENDRELATED TRADING STRATEGIES THE CHATSWORTH CALIF THRIFT WILL PAY A QUARTERLY DIVIDEND OF 23 CENTS A SHARE FRIDAY THE COMPANY SAID THERE WEREN'T ANY OTHER CORPORATE DEVELOPMENTS TO ACCOUNT FOR THE ACTION IN ITS SHARES 9311030076 931103 WHAT'S NEWS WORLDWIDE REPUBLICANS WON RACES FOR GOVERNOR IN NEW JERSEY AND VIRGINIA CHRISTIE TODD WHITMAN NARROWLY DEFEATED DEMOCRAT JIM FLORIO IN NEW JERSEY DEALING THE INCUMBENT A SURPRISING SETBACK AFTER HE HAD APPEARED HEADED FOR VICTORY IN VIRGINIA GEORGE ALLEN EASILY BEAT FORMER STATE ATTORNEY GENERAL MARY SUE TERRY ENDING 12 YEARS OF DEMOCRATIC RULE IN THE STATE THE VICTORIES ARE THE LATEST IN A SERIES OF BIG ELECTIONS WON BY REPUBLICAN CANDIDATES SINCE PRESIDENT CLINTON TOOK OFFICE IN NEW YORK CITY GOP CHALLENGER GIULIANI WAS PROJECTED TO WIN A TIGHT RACE OVER DEMOCRATIC MAYOR DINKINS CITY VOTERS APPROVED A TERMLIMITS RULE THE SENATE VOTED TO COMPEL SEN PACKWOOD ACCUSED BY 26 WOMEN OF SEXUAL HARASSMENT TO TURN OVER HIS PRIVATE DIARIES TO THE SENATE ETHICS COMMITTEE THE VOTE WAS 946 A TWODAY SENATE DEBATE EXPOSED NEW POTENTIAL ALLEGATIONS AGAINST THE OREGON REPUBLICAN FIERCE WINDS AGAIN SENT WILDFIRES RACING OUT OF CONTROL IN PARTS OF SOUTHERN CALIFORNIA KILLING ONE PERSON DESTROYING HOMES AND FORCING THOUSANDS OF PEOPLE TO FLEE SEVERAL FIRES BROKE OUT IN SUBURBS NORTHWEST OF LOS ANGELES INCLUDING WOODLAND HILLS CALABASAS AND MALIBU FIRES LAST WEEK DESTROYED SOME 730 HOMES BEFORE BEING CONTAINED JERUSALEM'S SIXTERM MAYOR LOST A REELECTION BID TO A RIGHTWING LAWYER EHUD OLMERT TEDDY KOLLEK 82 WAS VIEWED AS OPEN TO NEGOTIATIONS ABOUT A POWERSHARING COMPROMISE BETWEEN ISRAELIS AND PALESTINIANS IN JERUSALEM IN CONTRAST OLMERT 48 IS A FIERCE OPPONENT OF A DIVIDED JERUSALEM THE PLO INDEFINITELY SUSPENDED TALKS WITH ISRAEL IN TABA EGYPT SAYING THE ISRAELIS DIDN'T INTEND TO WITHDRAW FROM OCCUPIED LANDS THE CHIEF PALESTINIAN NEGOTIATOR SAID ISRAEL'S INTERPRETATION OF THE WORD WITHDRAWAL REALLY MEANT REDEPLOYMENT THE US IS MAKING CONTINGENCY PLANS TO HELP EVACUATE SOME KEY BACKERS OF DEPOSED PRESIDENT ARISTIDE FROM HAITI IF THE SITUATION THERE DETERIORATES FURTHER FACED WITH A POLITICAL STALEMATE AND MOUNTING VIOLENCE SOME ARISTIDE BACKERS ARE BECOMING INCREASINGLY NERVOUS US OFFICIALS SAID CHRISTOPHER DESCRIBED SOMALIA AND HAITI AS FAILED STATES AND QUESTIONED WHETHER THE US COULD KEEP ON SPENDING ITS RESOURCES ON THEM THE SECRETARY OF STATE ALSO STRUCK BACK AT CRITICS IN EUROPE WHO HAVE SAID THE ADMINISTRATION'S FOREIGN POLICY IS HESITANT PRESIDENT YELTSIN APPROVED RUSSIA'S FIRST POSTSOVIET MILITARY DOCTRINE ESTABLISHING A DEFENSIVE POSTURE IN WHICH NO NATION IS CONSIDERED AN ENEMY THE DOCUMENT MARKS A MAJOR TURNAROUND IN MILITARY STRATEGY FROM RUSSIA'S STANCE IN THE COLD WAR CROATS AND SERBS WERE HOLDING SECRET PEACE TALKS IN NORWAY DIPLOMATS SAID ADDING THAT A SNAG APPARENTLY HAD DEVELOPED OVER A NEW PEACE INITIATIVE SUBMITTED BY CROATIAN PRESIDENT TUDJMAN PENTAGON OFFICIALS ANNOUNCED THAT THEY ARE LOOKING INTO WHETHER SOME AMERICAN VETERANS OF THE 1991 PERSIAN GULF WAR WERE EXPOSED TO CHEMICALS THAT MAY HAVE CAUSED THEIR CURRENT ILLNESSES HENRY WATSON PLEADED GUILTY TO A FELONY COUNT OF ASSAULT AND APOLOGIZED FOR ATTACKING TRUCKER REGINALD DENNY DURING LAST YEAR'S LOS ANGELES RIOTS UNDER THE PLEA AGREEMENT WATSON WILL PERFORM COMMUNITY SERVICE HE ENTERED THE PLEA AFTER PROSECUTORS SAID THEY WOULD RETRY HIM ON ONE DEADLOCKED COUNT FROM THE DENNY BEATING TRIAL AIR QUALITY IMPROVED IN A NUMBER OF LARGE URBAN AREAS LAST YEAR THE EPA SAID BUT THE AGENCY IN ITS ANNUAL AIR QUALITY ASSESSMENT REPORTED THAT 72 US URBAN CENTERS CONTINUED TO HAVE DIRTY AIR FAILING TO MEET EITHER FEDERAL SMOG OR CARBON MONOXIDE STANDARDS THAT NUMBER WAS 13 FEWER THAN THE YEAR EARLIER SOUTH AFRICAN NEGOTIATORS AGREED FORMALLY THAT A GOVERNMENT OF NATIONAL UNITY WOULD BE INSTALLED AFTER ALLRACE ELECTIONS IN APRIL BUT PARTICIPANTS IN THE MULTIPARTY CONSTITUTIONAL TALKS FAILED TO REACH AN ACCORD ON HOW LONG THE GOVERNMENT SHOULD SERVE TURKEY WILL DEPLOY 10000 VOLUNTEER COMMANDOS IN THE SOUTHEASTERN PART OF THE COUNTRY AS PART OF A DRIVE TO CRUSH KURDISH SEPARATIST REBELS OFFICIALS SAID PRIME MINISTER CILLER TOLD LAWMAKERS THAT THE TROOPS WOULD MOVE INTO THE AREA NEXT MONTH 9311030075 931103 REVIEW & OUTLOOK EDITORIAL NO ACCIDENT AL GORE'S TASK FORCE ON REINVENTING GOVERNMENT WAS A START AT PUTTING SOME MEAT ON NEW DEMOCRAT BONES BUT THERE'S STILL TOO MUCH BRAINPOWER BEING DEVOTED TO TRYING TO FINESSE WASHINGTON'S FISCAL IMPASSE AND NOT ENOUGH TO QUESTIONING ITS BASIC PRIORITIES IF AS THE CONSENSUS WOULD HAVE IT VOTERS AREN'T WILLING TO COUGH UP MORE TAX MONEY FOR OLD PROGRAMS IT'S FAIR TO ASSUME THEY WON'T APPRECIATE BEING MADE TO PAY FOR THEM INDIRECTLY THROUGH BUSINESS MANDATES A TAX IS A TAX CONSIDER THE ISSUE OF WORKPLACE SAFETY MR GORE DOESN'T ABANDON THE OLD DEMOCRAT SHIBBOLETH WHICH HOLDS THAT EMPLOYERS WOULD MERRILY KILL AND MAIM THEIR WORKERS IF THE WATCHFUL EYE OF THE STATE WERE NOT UPON THEM BUT AT LEAST THE VICE PRESIDENT PARTS COMPANY WITH TEDDY KENNEDY MR GORE WOULD DO AWAY WITH OSHA'S ARMY OF INSPECTORS AND LET COMPANIES TRAIN THEIR OWN STAFF OR HIRE OUTSIDE CONTRACTORS TO PERFORM SAFETY AUDITS EMPLOYERS WHO EARN A GOLD STAR WOULD BE EXCUSED FROM SOME OF THE LAW'S WORST PAPERWORK HEADACHES CAREER POL TED KENNEDY MUST IMAGINE AN AMERICA FULL OF DARK SATANIC DRYCLEANERS AND SOFTWARE COMPANIES THE OSHA REFORMS HE'S BEEN PUSHING INCLUDE STIFF NEW JAIL TERMS FOR EMPLOYERS AND MANAGERS HE'D ALSO THROW RED MEAT TO THE PLAINTIFFS' BAR IN THE FORM OF COMPLICATED NEW MONITORING AND REPORTING REQUIREMENTS THAT WOULD TRIP UP EVEN THE MOST CONSCIENTIOUS EMPLOYER NEEDLESS TO SAY THIS STUFF IS VERY POPULAR WITH TRIAL LAWYERS AND THEIR NADERITE ALLIES THE DIFFERENCE BETWEEN THE GORE REGO APPROACH AND MR KENNEDY'S IS NOTHING TO SNEEZE AT BUT WE'D ENCOURAGE THE NEW DEMOCRATS TO GO ANOTHER STEP AND RETHINK GOVERNMENT'S ROLE ALTOGETHER A LOOK AT THE FACTS AND EVIDENCE NEVER HURTS ACCORDING TO THE NATIONAL SAFETY COUNCIL THE NUMBER OF WORKPLACE DEATHS DROPPED TO 9200 LAST YEAR FROM 13800 IN 1970 EVEN AS THE NUMBER OF WORKING FOLKS INCREASED BY HALF A MORE DETAILED STUDY RECENTLY BY THE LABOR DEPARTMENT LOOKED AT DEATH CERTIFICATES AND FOUND ONLY 6083 ONTHEJOB DEATHS IN 1992 SOME 60 WERE VICTIMS OF HIGHWAY MISHAPS PLANE CRASHES MURDERS AND SUICIDES THESE UNFORTUNATES MET THEIR FATE DURING WORKING HOURS BUT THEY WERE HARDLY VICTIMS OF UPTON SINCLAIRSTYLE INDUSTRIAL CALLOUSNESS THE SIMPLE FACT IS THAT PEOPLE ARE SAFER AT WORK THAN AT HOME AS THE REGO REPORT ACKNOWLEDGES EVEN COMPANIES IN DANGEROUS LINES OF WORK DON'T SEE A PUBLIC INSPECTOR ONCE IN A BLUE MOON ON THE JOB IN THE CAR OR FLYING THE AIRLINES WE'RE SAFER IN EVERYTHING WE DO BECAUSE OF TECHNOLOGY AND BECAUSE WE'RE BECOMING A WISER OR AT LEAST LESS RECKLESS PEOPLE COMPANIES DON'T NEED OSHA TO REMIND THEM OF THE BENEFITS OF SAFETY NOT WHEN THEY'VE GOT SKYROCKETING COSTS FOR WORKERS COMP INSURANCE THE EXPENSE OF TRAINING NEW WORKERS AND THE FACT THAT RISKY JOBS COMMAND HIGHER WAGES NEXT TO THESE SAFETY INCENTIVES AN OSHA FINE IS PEANUTS SO WHILE WE APPLAUD THE DIRECTION THAT MR GORE IS MOVING IN HE'S NOT QUITE THERE IT'S FINE FOR GOVERNMENT TO PURSUE ITS AIMS MORE EFFICIENTLY BUT SOMEBODY OUGHT TO BE ASKING WHETHER THOSE AIMS ARE APPROPRIATE 9311030073 931103 EXCISING WASTE HEALTHCARE PROVIDERS TRY INDUSTRIAL TACTICS TO REDUCE THEIR COSTS CHALLENGING EVERY STEP USED IN A PROCEDURE THEY SEEK BETTER OUTCOMES AS WELL TOTAL QUALITY MANAGEMENT BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE DAY BEFORE WILMA MALKOWYCH ENTERED HENRY FORD HOSPITAL FOR A LUNGCANCER TREATMENT SHE DRANK MORE THAN TWO QUARTS OF WATER AND OTHER LIQUIDS TO PROTECT HER KIDNEYS FROM THE EFFECTS OF CHEMOTHERAPY THE 66YEAROLD WOMAN RECORDED EACH DRINK IN A DIARY THE DIARY CUT A DAY OFF HER HOSPITAL STAY AND AT LEAST 250 OFF THE COST OF HER CARE MRS MALKOWYCH WAS TREATED ACCORDING TO NEW PRACTICES THAT HENRY FORD HOSPITAL DEVELOPED WITH A STRATEGY THAT IS BEGINNING TO TRANSFORM US MEDICINE HOSPITALS HEALTH PLANS AND DOCTORS ACROSS THE COUNTRY ARE USING INDUSTRIALMANAGEMENT TECHNIQUES TO CUT COSTS AND IMPROVE THE QUALITY OF CARE TEAMS OF DOCTORS NURSES ADMINISTRATORS AND EVEN ENGINEERS ARE CHALLENGING EVERY STEP INVOLVED IN TREATING CONDITIONS RANGING FROM HEART DISEASE TO URINARYTRACT INFECTIONS THE AIM IS TO ROOT OUT STEPS THAT ADD COSTS WITHOUT IMPROVING RESULTS THE POTENTIAL SAVINGS RUN TO TENS OF BILLIONS OF DOLLARS A YEAR FORD MOTOR CO TOOK 40 BILLION OUT OF THEIR OPERATING BUDGET BECAUSE THEY ADOPTED QUALITY PRINCIPLES AND BEGAN TO CHANGE THEIR CULTURE SAYS GAIL WARDEN CHIEF EXECUTIVE OFFICER OF HENRY FORD HEALTH SYSTEM WHICH INCLUDES THE HOSPITAL TO GET US HEALTH COSTS UNDER CONTROL WE HAVE TO CHANGE THE WAY WE PRACTICE MEDICINE HE SAYS FACING SHIFTING ECONOMIC INCENTIVES AND GROWING DEMANDS FOR COSTEFFECTIVE CARE HOSPITALS AND DOCTORS ARE EMBRACING THE IDEA A SOONTOBEPUBLISHED SURVEY OF 3300 HOSPITALS BY THE AMERICAN HOSPITAL ASSOCIATION FOUND THAT 69 SAY THEY HAVE LAUNCHED SOPHISTICATED QUALITYIMPROVEMENT CAMPAIGNS THREEQUARTERS OF THEM IN THE PAST TWO YEARS AND 58 MAJOR PHYSICIANLED PRACTICES INCLUDING THE MAYO CLINIC KAISER PERMANENTE THE LAHEY CLINIC IN BOSTON AND THE LOVELACE CLINIC IN ALBUQUERQUE NM RECENTLY JOINED FORCES TO DEVELOP AND DISSEMINATE NEW MANAGEMENT STRATEGIES AND IMPROVE THEIR COMPETITIVE POSITIONS THIS GIVES YOU AN INSIDE EDGE IN YOUR OWN MARKET TO BE EFFICIENT AND GAIN MARKET SHARE SAYS VINOD K SAHNEY A SENIOR VICE PRESIDENT AT HENRY FORD HEALTH SYSTEM AND AN ORGANIZER OF THE VENTURE THE GROUP PRACTICE IMPROVEMENT NETWORK INDEED THE DRIVE FOR COMPETITIVE ADVANTAGE AND EVEN ECONOMIC SURVIVAL IS FORCING THE CHANGE HOSPITALS AND DOCTORS HAVE LONG VIED FOR PATIENTS WITH COSTLY MEDICAL TECHNOLOGY IN A MARKET WHERE PRICE WASN'T AN OBJECT NOW PURCHASERS ARE GAINING THE UPPER HANDDEMANDING NOT ONLY LOWER PRICES BUT HIGHER QUALITY BIG EMPLOYERS SUCH AS DIGITAL EQUIPMENT CORP AND XEROX CORP AND HEALTHCARE ACCREDITING BODIES ARE COMPELLING HOSPITALS AND HEALTH PLANS TO MEASURE THEIR RESULTS AND STRIVE TO IMPROVE THEM AND PRESIDENT CLINTON'S HEALTHCARE PROPOSAL IS ACCELERATING SUCH EFFORTS BUT NO MATTER WHAT PROGRAM EMERGES IN WASHINGTON TRADITIONAL FEEFORSERVICE REIMBURSEMENT IS LIKELY TO GIVE WAY TO COMPETITIVE PREPAID CONTRACTS AS THE MAIN WAY OF PAYING FOR HEALTH CARE AS A RESULT HOSPITALS HEALTH PLANS AND DOCTORS WILL HAVE TO MANAGE COSTS TO PRICE THEIR SERVICES COMPETITIVELY WITHOUT HURTING QUALITY THEY ARE HUNGRY AND GROPING FOR METHODS TO HELP THEM DO THAT SAYS STEPHEN M SHORTELL PROFESSOR OF HEALTH MANAGEMENT AT NORTHWESTERN UNIVERSITY'S KELLOGG GRADUATE SCHOOL OF MANAGEMENT PROPONENTS OF QUALITY MANAGEMENT BELIEVE THAT EFFICIENCY LIES IN THE DETAILS IN THE TIME NEEDED TO PREPARE AN OPERATING ROOM FOR THE NEXT PATIENT IN A DOCTOR'S HABIT OF ORDERING A CERTAIN BATTERY OF TESTS OR IN THE COMPLEXITY OF STEPS REQUIRED FOR HEARTBYPASS SURGERY STRIPPING OUT STEPS THAT DON'T ADD VALUE DOESN'T COMPROMISE CARE BUT RATHER IMPROVES IT THEY SAY THAT'S WHAT'S GOOD ABOUT THIS STUFF SAYS DONALD M BERWICK CHIEF EXECUTIVE OF THE INSTITUTE FOR HEALTHCARE IMPROVEMENT IN BOSTON INSTEAD OF SKINNING BY IT'S BETTER AN EXPERIMENT AT INTERMOUNTAIN HEALTHCARE'S LDS HOSPITAL IN SALT LAKE CITY IS A CASE IN POINT DOCTORS ROUTINELY PRESCRIBE ANTIBIOTICS BEFORE AND AFTER SURGERY TO PREVENT INFECTIONS THAT CAN IMPERIL PATIENTS AND DOUBLE THEIR HOSPITAL STAY LDS RESEARCHERS FOUND THAT THE BEST TIME FOR THE TREATMENT WAS WITHIN TWO HOURS BEFORE AN OPERATION IN 1985 JUST 40 OF LDS SURGICAL PATIENTS GOT THE ANTIBIOTIC DURING THAT TWO HOURS AND THE HOSPITAL'S INFECTION RATE WAS 18 IN 1991 96 OF PATIENTS GOT THE MEDICATION ON TIME REDUCING THE INFECTION RATE TO 04 A 78 DROP AND SAVING MORE THAN 700000 IF YOU HAVE A LOWQUALITY OUTCOME IT USUALLY INVOLVES A COMPLICATION SAYS BRENT JAMES EXECUTIVE DIRECTOR OF INTERMOUNTAIN HEALTHCARE'S INSTITUTE FOR HEALTHCARE DELIVERY IMPROVEMENT IT COSTS MONEY TO FIX IT HOW MUCH MONEY CAN BE SAVED IS HARD TO GAUGE BUT MOST EXPERTS SEE ENORMOUS POTENTIAL ERNST & YOUNG THE ACCOUNTING AND CONSULTING FIRM SAYS HOSPITALS EXAMINING PROCEDURES SUCH AS HIP REPLACEMENT OR OPENHEART SURGERY TYPICALLY FIND THAT 15 TO 25 OF THE COST DOESN'T HELP A PATIENT SOME SURGEONS FOR INSTANCE REMOVE THE TUBES THAT DRAIN BLOOD FROM THE CHEST 24 HOURS AFTER A BYPASS OPERATION INSTEAD OF THE CUSTOMARY 48 SPEEDING HEALING AND SHORTENING THE HOSPITAL STAY BUT TOTAL QUALITY MANAGEMENT IS JUST BEING INTRODUCED AND MANY OBSTACLES LOOM AMONG THOSE CITED BY RESPONDENTS TO THE AMERICAN HOSPITAL ASSOCIATION SURVEY WERE INADEQUATE HEALTHINFORMATION SYSTEMS AND LACK OF PHYSICIAN SUPPORT SOME EXPERTS ALSO NOTE THE CONFLICTING ARRAY OF FINANCIAL INCENTIVES SOME OF WHICH PUNISH COSTEFFECTIVE CARE AT PARK NICOLLET MEDICAL CENTER IN MINNEAPOLIS FOR INSTANCE A NEW PROTOCOL GIVING NURSES INSTEAD OF DOCTORS PRIMARY RESPONSIBILITY FOR ANNUALLY TREATING 11000 CASES OF ROUTINE URINARYTRACT INFECTION IS EXPECTED TO SAVE THE CLINIC ABOUT 150000 ON ITS PREPAID PATIENTS BUT REDUCING THE AVERAGE CHARGE FOR TREATMENT TO 39 FROM 67 WILL COST PARK NICOLLET NEARLY 100000 IN REVENUE FROM ITS FEEFORSERVICE PATIENTS IT'S THE INCENTIVE SYSTEM FROM HELL SAYS PAUL BATALDEN VICE PRESIDENT FOR MEDICAL CARE AND QUALITY CHIEF AT HCA HOSPITAL CORP OF AMERICA MOREOVER SCRUTINIZING THE PROCESS OF CARE IS A PAINSTAKING TASK THAT REQUIRES GATHERING AND ANALYZING DATA COORDINATING AMONG SEVERAL DEPARTMENTS AND CAREFUL ATTENTION TO THE IMPACT OF NEW PROCEDURES ON PATIENTS EVEN DOCTORS WHO EMBRACE THE APPROACH ARE LOATH TO CHANGE ESTABLISHED PRACTICES WITHOUT SOUND EVIDENCE THAT PATIENTS WOULD BENEFIT THERE IS SO MUCH THERE FOR THE PICKING DR BATALDEN SAYS BUT IT'S GOING TO REQUIRE SOME REAL ENERGY AND WORK AT HENRY FORD A 903BED NOTFORPROFIT HOSPITAL IN DOWNTOWN DETROIT WORK ON THE CHEMOTHERAPY PROJECT BEGAN TWO YEARS AGO WITH AN ANALYSIS OF THE HOSPITAL'S FINANCIAL PERFORMANCE FOR SOME COMMON PROCEDURES CHEMOTHERAPY HIT A NUMBER OF HIGHWATER MARKS THAT MADE IT A CANDIDATE FOR IMPROVEMENT SAYS WILLIAM SCHRAMM HENRY FORD HEALTH SYSTEM'S VICE PRESIDENT FOR MANAGEMENT SERVICES FOR EXAMPLE COSTS JUMPED 14 IN 1990 WHILE REIMBURSEMENT ROSE JUST 2 BUT INSTEAD OF ARBITRARILY CUTTING PERSONNEL AND OTHER EXPENSES THE HOSPITAL ASKED A TEAM OF CANCER DOCTORS NURSES AND ADMINISTRATORS TO LOOK FOR WAYS TO REDUCE THE COSTS OF THE TREATMENT WITHOUT COMPROMISING CARE ABOUT 30 OF THE HOSPITAL'S 800 ANNUAL CHEMOTHERAPY PATIENTS ARE TREATED WITH HIGH DOSES OF CISPLATIN A DRUG THAT ATTACKS LUNG NECK AND OTHER TUMORS BUT CISPLATIN HAS TWO SEVERE SIDE EFFECTS IT RAVAGES THE KIDNEYS AND INDUCES VOMITING A DOUBLE WHAMMY BECAUSE NAUSEA LIMITS PATIENTS' ABILITY TO CONSUME OR RETAIN THE FLUIDS THAT PROTECT THE KIDNEYS FROM THE DRUG THE TEAM'S INITIAL TARGET WAS THE THREE TO FOURDAY HOSPITAL STAY FOR THESE PATIENTS WHO TYPICALLY WERE ADMITTED ON THE DAY BEFORE TREATMENT TO BULK UP ON LIQUIDS INTRAVENOUSLY AND SPENT TWO DAYS AFTERWARD TAKING ANTINAUSEA DRUGS THE TOXICITIES WERE THE REASON FOR THE LONGER STAY AND WHAT WE NEEDED TO OVERCOME SAYS ROBERT CHAPMAN ACTING CHIEF OF HEMATOLOGY/ONCOLOGY AT HENRY FORD AND THE PROJECT LEADER USING TEXTBOOK QUALITYIMPROVEMENT TECHNIQUES DR CHAPMAN AND HIS TEAM DREW FLOW CHARTS TO DIAGRAM THE TREATMENT PROCESS FROM THE DECISION TO ADMIT THE PATIENT THROUGH TO DISCHARGE THAT PROVIDED WHAT HCA'S DR BATALDEN CALLS A CATWALK FOR HEALTH CARE AKIN TO CATWALKS OVER FACTORY FLOORS GIVING TEAM MEMBERS A DETACHED VIEW OF THE PROCESS OF CARE THAT HELPED REVEAL POTENTIAL AREAS FOR CHANGE NURSES OFFERED THE FIRST IMPORTANT SUGGESTION THEY SAID PATIENTS GIVEN DETAILED INSTRUCTIONS COULD DRINK ENOUGH LIQUIDS AT HOME THE DAY BEFORE TREATMENT AND RECORD THEIR CONSUMPTION IN A DIARY FOR CLINICIANS TO CHECK WHEN THE PATIENTS ARRIVED AT THE HOSPITAL WITH THAT CHANGE CHEMOTHERAPY COULD BEGIN ON THE DAY OF ADMISSION CHOPPING A FULL DAY OFF THE STAY PEOPLE DON'T NEED TO BE IN THE HOSPITAL SAYS PATRICIA ROMANKO HEAD NURSE FOR HEMATOLOGY/ONCOLOGY AND A TEAM MEMBER THE ONLY THING THEY NEED IS THE HYDRATION TO SAVE A SECOND DAY DOCTORS FIGURED THAT PATIENTS COULD BE DISCHARGED JUST ONE DAY AFTER TREATMENT INSTEAD OF TWO IF THEIR VOMITING WAS UNDER CONTROL THE DOCTORS WOULD NEED AN AFTERNOON BLOOD TEST ON THE DAY OF DISCHARGE TO MAKE SURE THEIR PATIENTS' KIDNEYS HAD STOOD UP TO CISPLATIN BUT WORKING OUT A WAY TO GET THE TEST TAKEN AND THE RESULTS TO THE DOCTOR IN TIME FOR DISCHARGE TURNED OUT TO BE TRICKY TESTING BLOOD WITH AUTOMATED TECHNOLOGY TAKES ONLY ABOUT TWO MINUTES BUT ORDERING THE TEST TRANSCRIBING THE ORDER DRAWING THE BLOOD DELIVERING IT TO THE LAB AND NOTIFYING THE DOCTOR ALL ADDED UP TO AN EXTRA DAY IN THE HOSPITAL DOCTORS WANTED TO TRIM THE TURNAROUND TIME TO TWO HOURS HOW LONG INDIVIDUALS ARE KEPT IN THE HOSPITAL DEPENDS IN PART ON WHEN INFORMATION CAN GET BACK TO THE DOCTOR SAYS THOMAS J DOYLE AN ONCOLOGIST ON THE TEAM LABORATORY MANAGERS WHO RUN MORE THAN 1200 ROUTINE CASES DAILY BALKED AT A MIDAFTERNOON TEST THEY SAID IT WOULD DISRUPT A SCHEDULED RUN OF SPECIMENS FROM THE HOSPITAL'S SATELLITE LABS BUT EARLY AFTERNOON WASN'T AS BUSY ULTIMATELY THE TEAM DECIDED THAT BLOOD WOULD BE DRAWN FROM PATIENTS AT 1 PM AND TAGGED WITH SPECIAL RED STICKERS TO ALERT THE LAB TO EXPEDITE THE TEST SO THAT THE DOCTOR WOULD GET THE RESULTS BY 3 PM PATIENTS WHO PASSED WOULD GO HOME BY 5 PM OTHER CHANGES INCLUDED COORDINATION WITH THE HOSPITAL'S ADMITTING DEPARTMENT TO RESERVE BEDS FOR CHEMOTHERAPY PATIENTS TO AVOID DELAYING THEIR TREATMENT AND A REQUIREMENT THAT OUTPATIENT NURSES CALL PATIENTS AT HOME THE MORNING AFTER DISCHARGE TO MAKE SURE THEY WERE GETTING ENOUGH FLUIDS PATIENTS GET ANOTHER BLOOD TEST THAT DAY AS WELL CENTRAL TO THE SUCCESS OF THE SHORTER STAY WAS A STEP THAT ADDED COSTS A NEW ANTINAUSEA DRUG ONDANSETRON MADE BY GLAXO HOLDINGS PLC A STANDARD DOSE COSTS THE HOSPITAL 130 ABOUT FIVE TIMES THE CHARGE FOR THE NEXTBEST THERAPY BUT FOR HIGHDOSE CISPLATIN PATIENTS ONDANSETRON IS SO MUCH MORE EFFECTIVE IT'S NOT EVEN ETHICAL TO WITHHOLD IT DR CHAPMAN SAYS AND IT'S MUCH CHEAPER THAN A DAY IN THE HOSPITAL IN MID1992 THE TEAM TESTED THE NEW PROTOCOL ON 10 PATIENTS COORDINATING THE BLOOD TESTS AND CONTACTING PATIENTS BY TELEPHONE THE DAY AFTER DISCHARGE WERE AMONG THE INITIAL GLITCHES BUT THERE WEREN'T ANY SIGNIFICANT COMPLICATIONS A YEAR AGO THE HOSPITAL ADOPTED THE PROTOCOL AS ITS STANDARD OF CARE IT SOUNDS INCREDIBLY SIMPLE IN RETROSPECT BUT IT WAS PAINFUL AS WE WORKED ON IT DR CHAPMAN SAYS CHANGING A PROCESS IS A COMPLICATED UNDERTAKING SO FAR THIS YEAR SOME 100 PATIENTS HAVE BEEN TREATED UNDER THE NEW PROTOCOL ABOUT 80 WERE SUCCESSFULLY DISCHARGED AFTER ONE NIGHT IN THE HOSPITAL DR CHAPMAN SAYS THE OTHERS NEEDED AN EXTRA NIGHT TO STABILIZE STILL A DAY SHORTER THAN UNDER THE PREVIOUS STANDARD MEANTIME THE HOSPITAL'S MARGIN OF REVENUE OVER EXPENSE FOR ALL CHEMOTHERAPY PATIENTS THIS YEAR AVERAGED ABOUT 750 UP FROM SOME 350 IN 1990 MR SCHRAMM SAYS PARTLY REFLECTING THE CHANGES PARTICIPANTS SAY THE WAY THE EFFORT WAS CARRIED OUT ALSO GAVE ADMINISTRATORS AND NURSES A MAJOR ROLE IN DEVELOPING A NEW MORE EFFICIENT SYSTEM NOW DOCTORS HAVE A TIMETABLE TO FOLLOW IN TREATING PATIENTS THAT NURSES LAB TECHNICIANS AND ADMITTING CLERKS ARE PLUGGED INTO AS WELL SAYS LORALEE BUTLER RUPP AN INDUSTRIAL ENGINEER AT HENRY FORD HEALTH SYSTEM AND A TEAM MEMBER PEOPLE CAN EXECUTE THEIR JOBS WITH A LOT MORE CERTAINTY BUT THE PROJECT ALSO MAY HAVE UNWITTINGLY RAISED THORNY QUESTIONS FOR ADMINISTRATORS INTENT ON SPREADING QUALITY IMPROVEMENT THROUGHOUT THE ORGANIZATION HOW WILL LABORATORY MANAGERS RESPOND FOR INSTANCE WHEN ROUTINE SAMPLES FROM ORTHOPEDICS NEUROLOGY AND CARDIOLOGY ALL ARRIVE WITH RED STICKERS AS FOR MRS MALKOWYCH SHE IS A HAPPY PATIENT IT WORKS FOR ME SHE SAYS REFLECTING THE ATTITUDE OF MOST PATIENTS WHO PREFER TO SLEEP AT HOME RATHER THAN IN THE HOSPITAL AND BEING HOME IS EASIER ON HER FAMILY AS WELL AS A MEDICARE RECIPIENT WITH SUPPLEMENTAL COVERAGE FROM HER HUSBAND'S RETIREE HEALTH BENEFITS FROM GENERAL MOTORS CORP I HAVE HOSPITALIZATION THAT COVERS EVERYTHING MRS MALKOWYCH SAYS BUT WE HAVE TO CONTROL HEALTH COSTS IF I CAN SAVE ANY COSTS THAT AREN'T NECESSARY AS LONG AS IT WORKS FOR ME I'LL GO WITH IT 9311030071 931103 KMART TO SELL PACE STORES TO WALMART DISPOSAL OF WAREHOUSE CLUBS WILL YIELD 300 MILLION BIG CHARGE IS EXPECTED BY BOB ORTEGA AND CHRISTINA DUFF STAFF REPORTERS OF THE WALL STREET JOURNAL WALMART STORES INC AGREED TO ACQUIRE 91 OF KMART CORP'S 113 PACE MEMBERSHIP WAREHOUSE CLUBS CEMENTING THE LEAD OF ITS SAM'S CLUB UNIT AMID A CONSOLIDATION IN THE SLUMPING MEMBERSHIP WAREHOUSE INDUSTRY FOR KMART BASED IN TROY MICH THE SALE MARKS A MAJOR STEP IN ITS PLAN TO SHED SPECIALTY STORE BUSINESSES AND FOCUS ON ITS CORE DISCOUNT STORES THOUGH TERMS WEREN'T DISCLOSED KMART SAID IT WILL REALIZE NET CASH PROCEEDS OF 300 MILLION FROM THE TRANSACTION BUT KMART ALSO SAID IT ANTICIPATES A FOURTHQUARTER PRETAX CHARGE OF 450 MILLION RELATED TO THE SALE AND THE CLOSING OF THE OTHER 22 UNITS AND 19 THAT ARE UNDER CONSTRUCTION FOR WALMART BASED IN BENTONVILLE ARK THE ACQUISITION GIVES ITS 326UNIT SAM'S CLUB DIVISION ENTRY TO FIVE ADDITIONAL STATES ALASKA ARIZONA RHODE ISLAND UTAH AND WASHINGTON AND EXPANDS ITS PRESENCE IN THE MASSIVE CALIFORNIA RETAIL MARKET WHERE IT PICKS UP 21 PACE CLUBS SEVERAL ANALYSTS SAID THE ACQUISITION ALONG WITH THE COMPLETION LAST MONTH OF THE MERGER OF PRICE CO AND COSTCO WHOLESALE CORP INTO THE 206STORE PRICECOSTCO INC CHAIN WILL ALLOW SAM'S AND PRICECOSTCO TO TAKE A BREATHER FROM A PRICE WAR THAT HAS DEPRESSED MARGINS INDUSTRYWIDE WALMART FOR EXAMPLE HAS CHOSEN TO CANNIBALIZE ITS OWN SALES BY OPENING SAM'S CLUBS CLOSE TO ONE ANOTHER IN MANY MARKETS RATHER THAN GIVING COMPETITORS ANY OPENINGS SAYS MICHAEL EXSTEIN AN ANALYST FOR KIDDER PEABODY & CO THEY WERE WILLING TO SACRIFICE SHORTTERM PROFIT FOR LONGTERM POSITION AND THEY ACQUIRED THAT POSITION TODAY HE SAID BUT DEAN SANDERS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SAM'S CLUB SAID HE SEES LITTLE CHANCE OF MARGIN IMPROVEMENTS OUR COMPETITION ISN'T JUST OTHER WHOLESALERS BUT CATEGORY KILLERS AND OTHER COMPETITORS HE SAID THE MARKET'S STILL VERY COMPETITIVE AFTER YEARS OF FAST GROWTH WITH NOFRILLS STORES THAT SELL IN BULK TO DUESPAYING MEMBERS WAREHOUSE CLUB CHAINS HAVE BEEN HAMSTRUNG BY INCREASED MARKET SATURATION THE SLOW ECONOMY AND GROWING COMPETITION FROM OTHER DISCOUNT RETAILERS THE BATTLE FOR MARKET SHARE IN A SATURATED INDUSTRY LED DIRECTLY TO THE RECENT CONSOLIDATIONS KMART WHICH HAD BOUGHT PACE IN 1989 FOR 322 MILLION FOUND ITSELF AT A DISADVANTAGE IN THE WAREHOUSE ARENA LACKING A SYSTEM THAT COULD COMPETE WITH WALMART'S SOPHISTICATED DISTRIBUTION CAPABILITIES EVEN AFTER KMART BROUGHT IN NEW MANAGEMENT TO REVIVE THE CHAIN PACE'S LOSSES CONTINUED TO GROW PROMPTING KMART TO SELL 14 STORES TO WALMART IN MAY WHEN PRICE CO AND COSTCO CLOSED SOME STORES AND MERGED BOOSTING THEIR BUYING POWER AND OPERATING EFFICIENCIES PACE WAS PUSHED INTO A WEAKER POSITION IN THE INDUSTRY ANALYSTS GREETED THE PACE SALE AS GOOD NEWS FOR KMART AND WALMART KMART GAINS A CASH INFUSION DROPS A BUSINESS THAT HAD OPERATING LOSSES OF 63 MILLION IN THE FIRST HALF OF THIS YEAR AND MOVES AHEAD WITH PLANS TO CONCENTRATE ON ITS CORE DISCOUNT STORES KMART ALSO HAS TENTATIVELY AGREED TO SELL ITS PAYLESS DRUGSTORE CHAIN TO LEONARD GREEN & PARTNERS FOR 1 BILLION AND IS CONSIDERING SELLING 25 STAKES IN FOUR ADDITIONAL BUSINESSES MEANWHILE WALMART'S SAM'S CLUB DIVISION WHICH POSTED 123 BILLION IN SALES LAST YEAR SHOULD GAIN ABOUT 4 BILLION IN SALES FROM THE PACE CLUBS WHICH HAD AVERAGE ANNUAL SALES OF ABOUT 45 MILLION EACH ESTIMATED PATRICK MCCORMACK AN ANALYST AT DEAN WITTER REYNOLDS ANALYSTS SAID THAT WALMART WITH ITS SOPHISTICATED DISTRIBUTION SYSTEM SHOULD BE ABLE TO IMPROVE PACE'S PERFORMANCE MARKEDLY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE KMART SHARES CLOSED AT 24875 UP 125 CENTS AND WALMART SHARES CLOSED AT 27 UP 875 CENTS PACE MANAGEMENT HAD CONSIDERED BUYING AT LEAST SOME OF THE STORES BUT AMONG OTHER THINGS IT WASN'T ABLE TO GET ADEQUATE FINANCING PEOPLE FAMILIAR WITH THE SITUATION SAID THOSE PEOPLE ALSO SAID THAT IN THE LATEST TRANSACTION KMART NEGOTIATED THE RIGHT TO PROHIBIT WALMART FOR A CERTAIN TIME FROM CONVERTING THE PACE LOCATIONS INTO WALMART DISCOUNT STORES WHICH IN SOME CASES WOULD GO HEADTOHEAD WITH KMART DISCOUNT STORES A KMART SPOKESWOMAN SAYS THE COMPANY WOULDN'T COMMENT ON SPECIFICS OF THE TRANSACTION MR SANDERS SAID WALMART PLANS TO OPERATE ALL 91 PACE STORES AS SAM'S CLUBS AS IT HAS WITH 12 OF THE 14 PACE STORES IT ACQUIRED IN MAY WALMART CLOSED ONE PACE CLUB AND CONVERTED THE OTHER INTO A WALMART DISCOUNT STORE THE COMPANY SAID THE 12 PACE STORES THAT BECAME SAM'S CLUBS HAVE REPORTED HIGHER SALES THAN THEY HAD A YEAR EARLIER AS PACE CLUBS MR SANDERS SAID THAT AS A RESULT OF THE NEW TRANSACTION SAM'S CLUB WILL SCALE BACK PLANS TO OPEN 65 NEW CLUBS NEXT YEAR THOUGH IT ISN'T CLEAR BY HOW MUCH EMPLOYEES OF THE 91 WAREHOUSE STORES WILL BE RETAINED HE SAID KMART SAID THE FATE OF 4300 WAREHOUSE WORKERS AND 700 HEADQUARTERS MANAGEMENT EMPLOYEES WAS UNCERTAIN THE SALE WHICH IS SUBJECT TO FEDERAL ANTITRUST CLEARANCE IS EXPECTED TO CLOSE IN JANUARY 9311030069 931103 LIFELESS CHRISTIE'S SALE OF IMPRESSIONIST AND MODERN ART RAISES 513 MILLION BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CHRISTIE'S INTERNATIONAL PLC HELD A LIFELESS WORKMANLIKE SALE OF IMPRESSIONIST AND MODERN ART HERE LAST NIGHT BUT IT ACHIEVED THE DESIRED RESULTS ALL BUT 15 OF THE 60 SIXFIGURE AND SEVENFIGURE ARTWORKS ON THE AUCTION BLOCK SOLD INDICATING A SOLID FOUNDATION FOR THE MARKET FOR SUCH ART IN GENERAL BIDDERS HAD TASTE WITH MOST OF THE BETTERQUALITY PAINTINGS FINDING BUYERS NONETHELESS BIDDING WAS BELABORED AND A THIRD OF THE ARTWORKS THAT SOLD DID SO AT PRICES A SHADE BELOW THE AUCTION HOUSE'S EXPECTATIONS THERE WERE SOME TOUGH SPOTS BUT THE MARKET IS STRONG FOR ATTRACTIVE PICTURES FOR FRESH PICTURES SAID CHRISTOPHER BURGE PRESIDENT OF CHRISTIE'S USA THE AUCTION HOUSE'S US DIVISION HE NOTED THAT BIDS CAME FROM COLLECTORS AND DEALERS ALL OVER THE WORLD WITH STRONG TELEPHONE BIDDING FROM EUROPE SOUTHEAST ASIA AND JAPAN THE AUCTION WAS THE FIRST OF FIVE EVENING SALES IN THE TWOWEEK FALL ARTSALE SEASON THESE SALES ALONG WITH MAJOR SALES BY ART DEALERS SET THE TONE AND PRICES FOR THE BROADER FINEART MARKET FOR MONTHS TO COME THE TOTAL FOR THE SALE INCLUDING THE BUYER'S COMMISSION PAID TO CHRISTIE'S WAS 513 MILLION THE SALE WAS EXPECTED TO RAISE ABOUT 61 MILLION TO 796 MILLION ONE OF THE EVENING'S SUCCESS STORIES WAS AN 1885 EDGAR DEGAS PASTEL OF TWO BALLERINAS ESTIMATED TO SELL FOR 35 MILLION TO 45 MILLION IT BROUGHT 704 MILLION ALL PRICES INCLUDE CHRISTIE'S COMMISSION WHICH IS 15 ON THE FIRST 50000 AND 10 THEREAFTER ONE OF THE FINER PAINTINGS ON THE AUCTION BLOCK THIS SEASON A LARGE AND DETAILED CAMILLE PISSARRO STREET SCENE A TEXTBOOK EXAMPLE OF IMPRESSIONIST TECHNIQUE SOLD FOR 396 MILLION AGAINST EXPECTATIONS OF 25 MILLION TO 35 MILLION A DISAPPOINTMENT WAS PIERREAUGUSTE RENOIR'S PORTRAIT OF HIS GIRLFRIEND ALINE LATER HIS WIFE BREASTFEEDING THEIR BABY SON PIERRE NOT IN THE BEST OF CONDITION AND FEATURING BOTH THE MOTHER AND SON NUDE IT WAS CONSIDERED A GOOD PICTURE BUT A DIFFICULT SELL THE PAINTING WAS EXPECTED TO FETCH 8 MILLION BUT BIDDING STOPPED AT 48 MILLION AND IT DIDN'T SELL SALVADOR DALI'S HUGE 1958 SURREALIST PAINTING THE ASCENSION OF CHRIST BROUGHT 242 MILLION IT HAD BEEN EXPECTED TO SELL FOR 15 MILLION TO 2 MILLION ALL TOLD 18 OF THE ARTWORKS SOLD FOR MORE THAN 1 MILLION EACH TONIGHT SOTHEBY'S HOLDINGS INC SELLS A BROAD RANGE OF IMPRESSIONIST AND MODERN PAINTINGS FROM A VARIETY OF OWNERS THE SALE IS EXPECTED TO FETCH 57 MILLION TO 79 MILLION AND INCLUDES THE STAR LOT OF THE AUCTION SEASON AN HENRI MATISSE EXPECTED TO FETCH MORE THAN 10 MILLION TOMORROW NIGHT SOTHEBY'S ATTEMPTS TO SELL 88 PABLO PICASSOS IN THE MOST KEENLY AWAITED SALE OF THE AUCTION SEASON 9311030068 931103 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN RUSSIA'S MINISTRY OF FOREIGN ECONOMIC RELATIONS IS PREPARING A PLAN TO PRIVATIZE SOME FOREIGNTRADE ENTERPRISES THE GOVERNMENT WILL KEEP MAJORITY CONTROL OF STRATEGIC EXPORTERS OF ARMS AND RAW MATERIALS SUCH AS OIL AND NATURAL GAS FIRMS WITH LARGE DEBTS TO FOREIGN SUPPLIERS WON'T BE SOLD OFF INITIALLY UNDER A 1992 PRIVATIZATION LAW TURNING THE FOREIGNTRADE FIRMS OVER TO PRIVATE HANDS REQUIRES GOVERNMENT APPROVAL WHICH COULD BE GRANTED THIS MONTH IN THE FORMER SOVIET SYSTEM THE TRADING COMPANIES HANDLED ALL TRADE THROUGH MONOPOLIES IN THE CONTROLLED MARKET AS REGULATIONS HAVE BEEN LIFTED MANY RUSSIAN COMPANIES HAVE BEGUN TRADING FOR THEMSELVES AND COMMERCIAL TRADING HOUSES ALSO HAVE OPENED STILL MOST RUSSIAN TRADE IN RAW MATERIALS AND WEAPONS GOES THROUGH THE STATE COMPANIES THIRTYSIX COUNTRIES ADOPTED A DECLARATION ON REVITALIZING ASIAN CITIES PLAGUED BY WORSENING POLLUTION POVERTY AND OVERCROWDING AMID LARGELY UNCHECKED ECONOMIC GROWTH THE ACTION CAME IN A BANGKOK MEETING ORGANIZED BY THE UNITED NATIONS ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC TO COORDINATE RESPONSES TO THE REGION'S URBAN PROBLEMS THE DECLARATION SETS A COMMON GOAL OF ECONOMICALLY EFFICIENT ENVIRONMENTALLY SUSTAINABLE SOCIALLY JUST AND CULTURALLY VIBRANT URBAN AREAS IT URGES COUNTRIES TO REMOVE REGULATORY CONSTRAINTS ON EFFICIENT USE OF LAND LABOR AND FINANCIAL MARKETS GREECE SENT INSPECTORS THROUGHOUT ATHENS TO CHECK WHETHER SHOPS GIVE CUSTOMERS LEGALLY REQUIRED RECEIPTS THE GOAL IS TO FORCE BUSINESSES TO REGISTER ALL SALES AND THUS PAY CORRECT TAXES IN THE FIRST 1000 INSPECTIONS 47 VIOLATIONS WERE FOUND ENRAGING SHOPKEEPERS SUBJECT TO AN 825 FINE THE CRACKDOWN IS TO BE EXTENDED NATIONWIDE IN AN EFFORT TO BOOST TAX REVENUES AND THUS CUT GREECE'S BUDGET DEFICIT THE NEW SOCIALIST GOVERNMENT SCRAPPED A PRIVATIZATION PROGRAM THAT WOULD HAVE RAISED MONEY FOR BUDGET RELIEF SO IT TOOK AIM AT BUSINESSES TO GET SOME OF THE 413 BILLION LOST ANNUALLY THROUGH TAX DODGES CHINA'S AVIATION AGENCY PREDICTED THE COUNTRY'S AIRLINES WILL CARRY 335 MILLION PASSENGERS ON DOMESTIC ROUTES THIS YEAR A 20 JUMP FROM LAST YEAR THOUGH A SLOWDOWN FROM 30 AVERAGE GROWTH IN EACH OF THE PAST TWO YEARS THE REINEDIN PACE WAS PARTLY ATTRIBUTED TO GOVERNMENT CURBS IMPOSED IN JULY TO COOL CHINA'S BOOMING ECONOMY STILL THE AGENCY ESTIMATED THAT AIR TRAFFIC WILL CONTINUE TO GROW AT LEAST TWICE AS FAST AS CHINA'S GROSS DOMESTIC PRODUCT FOR THE FORESEEABLE FUTURE BY YEAR END CHINA'S AIRLINES WILL HAVE SEATING FOR 43000 PASSENGERS OR MORE THAN FIVE TIMES AS MANY AS 15 YEARS AGO PRAVDA WHICH RUSSIAN PRESIDENT BORIS YELTSIN MUZZLED ALONG WITH MOST OTHER OPPOSITION NEWSPAPERS A MONTH AGO DURING A VIOLENT CONFRONTATION WITH HARDLINE LAWMAKERS RESUMED PUBLICATION WITH A DECLARATION IT WOULD NEVER ABANDON SOCIALISM THE FORMER SOVIET UNION'S MOUTHPIECE FOR ALMOST SEVEN DECADES PRAVDA AT ITS PEAK HAD A CIRCULATION OF 13 MILLION NOW DOWN TO 475000 BUT COPIES OF THE REVIVED PAPER THE MAIN VOICE OF OPPOSITION TO THE YELTSIN GOVERNMENT WERE DIFFICULT TO FIND NEWANDS EITHER REFUSED TO SELL THE PAPER OR SOLD OUT THE FEW ISSUES THEY GOT MUCH OF THE PRINT RUN GOES TO SUBSCRIBERS' HOMES VENEZUELA PASSED LEGISLATION OPENING THE DOOR FULLY TO FOREIGN INVESTMENT IN THE FINANCIAL SECTOR STARTING JAN 1 THE MEASURE IS INTENDED TO STRENGTHEN THE COUNTRY'S FINANCIAL SYSTEM BY ENHANCING COMPETITION FOREIGNERS RESTRICTED SINCE 1971 TO 20 HOLDINGS IN COMMERCIAL AND INVESTMENT BANKS AND MORTGAGE AND LEASING COMPANIES MAY OWN AS MUCH AS 100 THE LAW ALSO MAKES FOREIGN BANKS OR BRANCHES SUBJECT TO THE SAME RULES AS VENEZUELAN BANKS FOREIGN BANKS IN VENEZUELA NOW HAVE SIGNIFICANT OPERATING RESTRICTIONS TEN FOREIGN FIRMS IN SOUTHERN CHINA WERE EACH FINED THOUSANDS OF DOLLARS FOR VIOLATING WORKERS' RIGHTS AN OFFICIAL NEWSPAPER SAID IN A REPORT ON LABOR PROBLEMS IN FACTORIES WITH FOREIGN INVESTMENTS MOST OF THE 10 COMPANIES IN HAIKOU THE CAPITAL OF HAINAN PROVINCE HIRED WORKERS WITHOUT SIGNING CONTRACTS AND SOME DIDN'T GIVE EMPLOYEES PROPER WORKING PAPERS OR INSURANCEALL VIOLATIONS OF CHINA'S LABOR REGULATIONS THE CHINA YOUTH NEWS SAID THE REPORT DIDN'T ELABORATE ON THE FINES OR THE COMPANIES OTHER THAN TO IDENTIFY ONE AS A TAIWANESE SHOE FACTORY THE OFFICIAL MEDIA IN CHINA ITSELF LONG ACCUSED OF TRAMPLING ON HUMAN RIGHTS RECENTLY CARRIED NUMEROUS REPORTS OF LABOR PROBLEMS AT BUSINESSES THAT HAVE FOREIGN OWNERSHIP THE ECONOMIC DAILY SAID A SAMPLING OF FOREIGNINVESTED ENTERPRISES IN NORTHEAST CHINA FOUND THAT 80 OF STRIKES WERE PROMPTED BY VIOLATIONS OF WORKERS' RIGHTS A STRIKE BY AIRTRAFFIC CONTROLLERS IN CHAD'S CAPITAL OF N'DJAMENA HALTED FLIGHTS TO THE CENTRAL AFRICAN COUNTRY THE WORKERS BEGAN THE THREEDAY WALKOUT SUNDAY OVER HOUSING CONDITIONS ABOUT 4000 STUDENTS MARCHED PEACEFULLY IN BUDAPEST DEMANDING PRESS FREEDOM AND DENOUNCING MANAGEMENT OF STATE RADIO AND TELEVISION AS DANGERS TO HUNGARY'S FLEDGLING DEMOCRACY DEMONSTRATORS APPEALED FOR POLITICAL NEUTRALITY IN STATE MEDIA 9311030067 931103 REVIEW & OUTLOOK EDITORIAL ASIDES LOCAL POLITICS IN THE MIDST OF THE VOTING YESTERDAY WHITE HOUSE PRESS SECRETARY DEE DEE MYERS ANNOUNCED CRYPTICALLY THAT I THINK LOCAL ELECTIONS TURN LARGELY ON LOCAL ISSUES MAYBE MS MYERS WAS MUSING ON THE INTERESTING RECENT TURN IN THE LOCAL POLITICS OF ARKANSAS JULIA HUGHES JONES THE STATE'S DEMOCRATIC AUDITOR SINCE 1980 RECENTLY ANNOUNCED SHE WAS BECOMING A REPUBLICAN BECAUSE DEMOCRATS NO LONGER REPRESENT THE AVERAGE CITIZEN MS JONES TOLD US THE BIGGEST REASON FOR HER SWITCH WAS THE DEMOCRATIC MACHINE'S HYSTERICAL OPPOSITION TO THE TERM LIMITS THAT 60 OF ARKANSAS VOTERS VOTED FOR LAST YEAR A JUDGE RULED FAVORABLY ON A DEMOCRATIC CHALLENGE TO THAT RESULT AND HIS DECISION IS NOW ON APPEAL IN 1992 MS JONES CHALLENGED US SENATOR DALE BUMPERS IN THE DEMOCRATIC PRIMARY OUTSPENT SIX TO ONE SHE STILL WON 36 OF THE VOTE BUT AFTER THAT SHE WAS OSTRACIZED BY MANY DEMOCRATS ESPECIALLY WOMEN MS JONES WILL PROBABLY RUN AGAIN FOR SECRETARY OF STATE NEXT YEAR AND SAYS IT'S NOW POSSIBLE FOR THE GOP TO WIN IN ARKANSAS IN JULY REPUBLICAN MIKE HUCKABEE WAS ELECTED LT GOVERNOR IN SEPTEMBER ANN BUSH BECAME THE FIRST REPUBLICAN IN 100 YEARS TO WIN A LEGISLATIVE ELECTION IN THE DELTA MS JONES A MODERATE ON SOCIAL ISSUES SAYS HER PARTY SWITCH ISN'T A STATEMENT AGAINST PRESIDENT CLINTON THOUGH SHE DISAGREES WITH HIS TAXHEAVY BUDGET THE LARGER MESSAGE MAY BE THAT THIS IS YET ONE MORE SIGN THAT THE POLITICAL STATUS QUO AROUND THIS COUNTRY IS UNDER STRAIN 9311030065 931103 CREDIT MARKETS FEARS OF STRONGER ECONOMY HIT 30YEAR BOND BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR THE FIRST TIME IN A YEAR BOND INVESTORS FEAR THAT THE ECONOMY IS GAINING STRENGTH THE 30YEARBOND YIELD HAS BEEN ON A TWOWEEK CLIMB TO 606 YESTERDAY FROM 579 IN MIDOCTOBER NEWS OF A 208 JUMP IN SEPTEMBER NEWHOME SALES PUMMELED BOND PRICES MORE THAN A POINT EARLY YESTERDAY STUNG BY THE LARGEST MONTHLY INCREASE IN SEVEN YEARS INVESTORS WORRIED THAT A REVIVING ECONOMY WOULD FUEL INFLATION SLICING THE VALUE OF THEIR FIXEDINCOME HOLDINGS BY THE END OF THE DAY THE BENCHMARK 30YEAR TREASURY BOND WAS DOWN 3/8 POINT OR 375 FOR A BOND WITH 1000 FACE VALUE DURING THE PAST TWO WEEKS ITS PRICE HAS SUNK NEARLY FOUR POINTS NEARLY 40 FOR A BOND WITH 1000 FACE VALUE SINCE THE NEWEST 30YEAR BOND CARRIES A COUPON OF 625 SUCH A MOVE MEANS THAT INVESTORS WHO PURCHASED IT ON OCT 15 WILL LOSE MONEY IF THEY SELL NOW WHILE WALL STREET ANALYSTS WERE RELUCTANT TO SAY THE BONDMARKET RALLY IS OVER SOME HINTED IT MAY BE IN ITS TWILIGHT YOU HAVE TO ARGUE THAT THE DISTANCE FOR RATES TO FALL IS MUCH LESS NOW THAN AT ANY TIME IN THE LAST FEW YEARS SAYS ROBERT GIORDANO DIRECTOR OF ECONOMIC RESEARCH AT GOLDMAN SACHS & CO THE ECONOMIC RECOVERY IS ALMOST THREE YEARS OLD AND THE MARGIN OF UNUSED CAPACITY IS MUCH LESS THAN IT WAS BEFORE HE SAYS IT'S MORE DIFFICULT FOR RATES TO FALL BECAUSE IT'S MORE DIFFICULT FOR INFLATION TO STAY LOW MR GIORDANO ISN'T CALLING THE END OF THE BOND RALLY IT'S PREMATURE TO BE GETTING A SUSTAINED INCREASE IN RATES HE SAYS TRADING WAS VERY HEAVY IN THE TREASURY MARKET ACCORDING TO THOMAS R LYNETT JR A DIRECTOR OF GOVERNMENT TRADING AT MERRILL LYNCH ESPECIALLY AMONG SHORTERTERM SECURITIES IT WAS ONE OF THE HEAVIEST VOLUME DAYS FOR TRADING IN TREASURYS MATURING IN FIVE YEARS OR LESS IN A LONG TIME HE SAYS OUR TWOYEAR NOTE TRADER SAID IT WAS THE BUSIEST HE'S BEEN IN EIGHT MONTHS AMONG TREASURY SECURITIES WITH SHORTER MATURITIES THE YIELD CHANGE HAS BEEN EVEN BIGGER THAN FOR THE 30YEAR BOND THE YIELD ON THE TWOYEAR NOTE FOR EXAMPLE ROSE TO 414 YESTERDAY FROM 377 IN MIDOCTOBER REPORTS DEPICTING A STRONGER ECONOMY IN THE FOURTH QUARTER HAVE BEEN RESPONSIBLE FOR MUCH OF THE PAST TWO WEEKS' BONDMARKET LOSSES BUT MONEY MANAGERS AND ECONOMISTS QUICKLY POINT OUT THAT THESE REPORTS HAVE BEEN EXPECTED THEY ARGUE THAT LOWLEVEL INTEREST RATES ARE ENOUGH REASON FOR INVESTORS TO BE NERVOUS ABOUT BUYING LONGTERM BONDS IN MIDOCTOBER THE 10YEAR TREASURY NOTE HIT ITS LOWEST YIELD 517 SINCE SUMMER 1967 YESTERDAY THE 10YEAR NOTE'S YIELD REACHED 56 MR GIORDANO LIKE MANY ECONOMISTS DOESN'T BELIEVE THE NATION'S ECONOMY CAN SUSTAIN SUCH GROWTH HE THINKS A MOVE BACK TO YIELDS OF 58 AND LOWER IS POSSIBLE FOR THE 30YEAR BOND AND THAT SHORTTERM RATES ARE LIKELY TO REMAIN LOW THROUGH THE MIDDLE OF NEXT YEAR BUT SUCH A MOVE LOWER WILL BE A STRUGGLE MOST INVESTORS SEEM TO HAVE BEEN APPROACHING THE US BOND MARKET WITH ONE FOOT OUT THE DOOR HE SAYS ANY REVERSAL JUST RESURRECTS THE FEELING THAT PEOPLE HAD THAT YIELDS WEREN'T EXPECTED TO GET THIS LOW IN THE FIRST PLACE WHEN RATES ARE LOW IT TAKES A MUCH SMALLER MOVE IN YIELDS TO CAUSE GREATER DAMAGE TO AN INVESTOR'S PORTFOLIO THAN WHEN RATES ARE HIGH WE'RE JUST VERY CAUTIOUS SAYS JOSEPH DEANGING DIRECTOR OF TAXEXEMPT FIXEDINCOME MANAGEMENT AT GREENWICH STREET ADVISERS FORMERLY SHEARSON LEHMAN ADVISERS INC A UNIT OF SMITH BARNEY SHEARSON THE LAST COUPLE OF WEEKS HAVE REALLY KNOCKED THE LIGHTS OUT OF THE BOND MARKET HE SAYS TAKE A LOOK AT THE MUNICIPALBOND MARKET HE SAYS JUST 10 DAYS AGO A 5 COUPON BOND MATURING IN 2033 FROM THE LOS ANGELES DEPARTMENT OF WATER & POWER WAS TRADED AT A YIELD OF 53 FOR A PRICE OF 95 SAYS MR DEANE YESTERDAY THAT BOND YIELDED ABOUT 56 FOR A PRICE OF 905 A DROP OF 45 POINTS OR 45 FOR A BOND WITH A 1000 FACE VALUE HE SAYS THE RISKREWARD RATIO IS VERY HIGH FOR INVESTORS BUYING LONGTERM SECURITIES SAYS MR DEAN THE LONGER THE MATURITY OF A BOND THE MORE VULNERABLE IT IS TO INTERESTRATE MOVES A YEAR AGO THE RATIO WAS LOWER SAYS MR DEAN RIGHT NOW YOU HAVE TO BE VERY VERY RIGHT ABOUT YOUR VIEW ON INTEREST RATES HE WARNS I DON'T THINK THE RALLY IS OVER SAYS PETER HEGEL HEAD OF FIXEDINCOME INVESTMENTS AT VAN KAMPEN MERRITT BUT IT'S A RISKIER MARKET BESIDES HE POINTS OUT THERE ARE THINGS COMING OUT OF WASHINGTON THAT COULD PUT A LID ON HOW HIGH BOND RATES CAN GO IN THE NEXT YEAR HIGHER TAXES AND WORRIES ABOUT THE COST OF A PROPOSED HEALTHCARE REFORM PLUS LAYOFFS AT LARGE CORPORATIONS ARE SURE TO KEEP THE ECONOMY FROM TAKING OFF HE SAYS BUT RIGHT NOW REALITY IS SETTING IN FOR MANY BOND INVESTORS SAYS TOM STEFFANCI HEAD OF FIXEDINCOME INVESTMENTS AT FIDELITY INVESTMENTS THE MUTUALFUND GIANT THIS HAS BEEN A YEAR OF DOUBLEDIGIT RETURNS FOR BOND INVESTORS AND THERE ARE NOT MANY OF THOSE HE SAYS FUND MANAGERS ARE TAKING THE VIEW THAT ANY SURPRISES BETWEEN NOW AND THE END OF THE YEAR ARE LIKELY TO BE NEGATIVE NOT POSITIVE SO THEY ARE SQUARING THEIR BETS AND SOME OF THEM ARE SELLING THEIR HOLDINGS OF LONGTERM BONDS FUND MANAGERS AREN'T BECOMING MORE BEARISH ON THE MARKET HE SAYS BUT THEY ARE PULLING IN SOME OF THEIR POSITIONS AND BECOMING MORE NEUTRAL BUT MR STEFFANCI ISN'T CALLING THE END OF THE BOND MARKET RALLY EITHER WE MAY GET A GROWTH SPURT IN THE ECONOMY IN THE FOURTH QUARTER HE SAYS BUT THERE WILL BE NO ENGINE TO DRIVE IT IN THE 1994 FIRST QUARTER ON THE OTHER HAND THE INFLATION OUTLOOK IS STILL EXTREMELY POSITIVE ANOTHER REASON FUND MANAGERS ARE WORRYING IS AN EXPECTED FLOOD OF NEW THREEYEAR AND 10YEAR NOTES SLATED TO BE SOLD BY THE GOVERNMENT NEXT WEEK SAYS MR STEFFANCI TODAY THE TREASURY IS SLATED TO ANNOUNCE THE SIZE OF THESE QUARTERLY REFUNDING AUCTIONS ANALYSTS SAY THE THREEYEARNOTE AUCTION WILL JUMP BY 500 MILLION TO 17 BILLION WHILE THE 10YEARNOTE AUCTION WILL JUMP BY 250 MILLION TO 1125 BILLION THERE WILL BE NO 30YEARBOND AUCTION BECAUSE OF A TREASURY PLAN TO SHORTEN THE AVERAGE MATURITY OF ITS DEBT OUTSTANDING ACCORDING TO RH WRIGHTON & ASSOCIATES WHICH SPECIALIZES IN ANALYSIS OF TREASURY ACTIVITY THIS WILL BE THE FIRST TIME IN MORE THAN TWO DECADES THAT THE THE TREASURY HAS SKIPPED A 30YEARBOND AUCTION OF ITS OWN VOLITION MEANWHILE THE BILL SECTOR HAS BEEN SWAMPED BY INCREASING SUPPLY THE TREASURY ANNOUNCED YESTERDAY AFTERNOON ANOTHER INCREASE IN THE WEEKLY THREEMONTH AND SIXMONTH BILL AUCTIONS ON MONDAY IT WILL SELL A RECORD 276 BILLION IN BILLS BRINGING THE TOTAL INCREASE IN THE WEEKLY OFFERING TO 52 BILLION SINCE MIDSEPTEMBER TREASURY ALSO SAID IT WOULD SELL 10 BILLION IN 36DAY BILLS TOMORROW MUNICIPALBOND PRICES FELL THANKS TO HEAVY SELLING AND REGISTERED LOSSES OF 3/8 POINT TO A FULL POINT BY THE CLOSE OF TRADING ON MONDAY MANY PRICES DROPPED AS MUCH AS A POINT THE SLIDE PRIMARILY IS DRIVEN BY CONCERNS ABOUT A SERIES OF STRONGERTHANEXPECTED US ECONOMIC REPORTS THE NEW YORK STATE POWER AUTHORITY'S 525 COUPON GENERALPURPOSE REFUNDING BONDS MATURING IN 2018 WERE ONE POINT LOWER AT 97 TO YIELD 542 IN THE PRIMARY MARKET THE LOS ANGELES DEPARTMENT OF WATER & POWER'S 6274 MILLION ISSUE OF 1993 ELECTRIC PLANT REVENUE REFUNDING BONDS APPARENTLY WERE WON BY A GROUP OF UNDERWRITERS LED BY GOLDMAN SACHS ACCORDING TO CAPITAL MARKETS REPORT A DOW JONES & CO NEWS SERVICE YIELDS FOR THE BONDS RANGED FROM 345 FOR NOTES MATURING IN 1995 TO 558 FOR BONDS MATURING IN 2031 BOTH MOODY'S INVESTORS SERVICE AND STANDARD & POOR'S HAVE RATED THE BONDS DOUBLEA BY LATE YESTERDAY THERE WAS AN UNSOLD BALANCE OF 241 MILLION GOLDMAN SACHS SAID ISSUANCE OF INVESTMENTGRADE CORPORATE DEBT SLOWED TO A TRICKLE AS INTEREST RATES CONTINUED TO RATCHET UPWARD GTE NORTH CANCELLED A COMPETITIVE OFFERING THAT HAD BEEN SCHEDULED EARLY IN THE SESSION BECAUSE OF THE UNSETTLED BOND MARKET A COMPANY SPOKESMAN SAID ONCE THE MARKET SETTLES THE GTE UNIT WILL RESCHEDULE THE BID HE ADDED MANOR CARE ALSO DECIDED AGAINST OFFERING DEBT DUE TO HIGHER INTEREST RATES SAID JIM MACCUTCHEON SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER HOWEVER DEAN WITTER DISCOVER PRICED 250 MILLION OF 12YEAR NOTES IN AN OFFERING LAUNCHED MONDAY INTERNATIONAL PAPER SURPRISED THE MARKET LATE YESTERDAY WITH A 200 MILLION OFFERING WHICH HAD BEEN INCREASED BY 50 MILLION ONE SYNDICATE OFFICIAL SAID RISING RATES KEPT INVESTMENTGRADE SECONDARY TRADERS BUSY ESPECIALLY DURING THE MORNING WHEN PRICES PLUNGED YIELD SPREADS WERE UNCHANGED BY LATE YESTERDAY THOUGH THERE WAS A LOT OF VOLATILITY DURING THE SESSION TRADERS SAID JUNKBOND TRADING WAS VERY SLOW TRADERS SAID WITH ATTENTION ON THE NEWISSUE CALENDAR PRICES DROPPED ABOUT A QUARTER IN SYMPATHY WITH TREASURYS STRONGERRATED BONDS WERE MOST AFFECTED ONE TRADER NOTED MORTGAGE SECURITIES CONTINUED TO BENEFIT FROM SLIDING TREASURY PRICES IN A DAY THAT SAW ACTIVE TRADING IN MOST MARKET SECTORS ALTHOUGH PRICES EDGED DOWN MORTGAGES OVERALL PERFORMED BETTER THAN COMPARABLE GOVERNMENT BONDS THE REVERSAL SO FAR IS VERY BENEFICIAL TO MORTGAGES SAYS RICHARD ELLSON SENIOR MORTGAGE ANALYST AT DONALDSON LUFKIN & JENRETTE SECURITIES MORTGAGE RATES ARE RISING THE FEDERAL HOME LOAN MORTGAGE CORP REPORTED ITS COMMITMENT RATE FOR A 30YEAR MORTGAGE DELIVERED IN 30 DAYS IS 698 UP FROM 678 ON MONDAY THAT MEANS THE PACE OF REFINANCING SHOULD SLOW FROM PERSISTENTLY BRISK LEVELS AT THE CLOSE OF TRADING GINNIE MAE 65S FOR NOVEMBER DELIVERY WERE DOWN 8/32 AT 99 24/32 FREDDIE MAC GOLD 65S DOWN 6/32 AT 99 29/32 AND FANNIE MAE 65S DOWN 6/32 AT 99 21/32 THE TREASURY'S 10YEAR NOTE WITH A COMPARABLE DURATION ENDED DOWN 10/32 AT 101 2/32 TO YIELD 5604 THE YIELD ON FREDDIE MAC 65S AT 654 WAS 94 BASIS POINTS ABOVE THE 10YEAR NOTE'S YIELD TWO BASIS POINTS TIGHTER THAN AT CLOSE OF TRADING MONDAY SUPPLY PRESSURES ARE AFFECTING THE COUPON SECURITIES SOMEWHAT ALTHOUGH THE MARKET BONDS BACKED BY CURRENT PRODUCTION PERFORMED BETTER THAN COMPARABLE TREASURYS THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9311030064 931103 US ORDERS GOLDMAN TO CUT GYPSUM INTEREST ANTITRUST DECISION CALLS FOR FIRM TO SHED 20 OF NATIONAL GYPSUM BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL IN ONE OF ITS FIRST MAJOR ANTITRUST ACTIONS THE CLINTON ADMINISTRATION HAS FORCED GOLDMAN SACHS & CO TO SELL A 20 STAKE IN NATIONAL GYPSUM CO BECAUSE GOLDMAN OWNED STAKES IN THE NATION'S TOP TWO GYPSUM MAKERS GOLDMAN ACQUIRED BIG STAKES IN BOTH NATIONAL GYPSUM AND ITS CHIEF COMPETITOR USG CORP ABOUT THREE YEARS AGO THROUGH A VULTURE INVESTMENT FUND RUN BY THREE OF ITS PARTNERS THE TWO COMPANIES COMBINED MAKE MORE THAN HALF OF ALL GYPSUM WHICH IS USED MAINLY FOR WALLBOARD IN HOUSING CONSTRUCTION SOLD IN THE US THE ACTION BY THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION ALLOWS GOLDMAN TO RETAIN A 43 STAKE IN USG THE LARGEST GYPSUM MAKER ON OCT 14 NATIONAL GYPSUM ANNOUNCED THAT GOLDMAN WOULD SELL THE STAKE TO LAFARGE COPPEE SA OF FRANCE WITHOUT MENTIONING THE ANTITRUST ISSUE THE PROMPT DISPOSITION OF GOLDMAN'S HOLDINGS ENSURES THAT COMPETITION IN THE GYPSUM WALLBOARD BUSINESS IS NOT COMPROMISED BY HAVING A SINGLE ENTITY WITH CONTINUING SIGNIFICANT OWNERSHIP INTERESTS IN TWO LEADING COMPETITORS SAID ANNE K BINGAMAN ASSISTANT ATTORNEY GENERAL IN CHARGE OF THE ANTITRUST DIVISION SHE SAID GOLDMAN MADE THE SALE IN ORDER TO ADDRESS THE ANTITRUST DIVISION'S CONCERNS THE GOLDMAN FUND CALLED THE WATER STREET CORPORATE RECOVERY FUND BOUGHT JUNK BONDS IN THE TWO COMPANIES AT FIRESALE PRICES AFTER BOTH CONCERNS TOOK ON TOO MUCH DEBT IN LEVERAGED TRANSACTIONS IN THE 1980S THE BONDS WERE LATER CONVERTED INTO STOCK WHEN THE COMPANIES' DEBT WAS RESTRUCTURED FOLLOWING BANKRUPTCY LAW FILINGS INVESTMENT BANKERS AT GOLDMAN HAD ORIGINALLY ADVISED BOTH COMPANIES ON THE LEVERAGED TRANSACTIONS PROMPTING COMPLAINTS FROM OTHER BOND INVESTORS THAT GOLDMAN HAD AN UNFAIR ADVANTAGE IN BUYING THE BONDS SUCH COMPLAINTS ULTIMATELY LED GOLDMAN TO SHUT DOWN AND THE WATER STREET MANAGERS LEFT THE FIRM MS BINGAMAN HAS VOWED A CRACKDOWN ON MONOPOLISTIC BEHAVIOR BY BIG CORPORATIONS BUT IT WAS IRONIC THAT SHE WOULD MAKE ONE OF HER FIRST BIG MOVES AGAINST GOLDMAN ONE OF THE LARGEST AND MOST POWERFUL SECURITIES FIRMS ON WALL STREET INSTEAD OF SOME INDUSTRIAL GIANT ROBERT RUBIN GOLDMAN'S FORMER COCHAIRMAN IS THE CHIEF OF THE CLINTON ADMINISTRATION'S NATIONAL ECONOMIC COUNCIL ONE NOTED ANTITRUST EXPERT APPLAUDED THE MOVE CALLING IT THE ADMINISTRATION'S FIRST SIGNIFICANT ANTITRUST ACTION WILLIAM BAXTER A LAW PROFESSOR AT STANFORD UNIVERSITY WHO NEGOTIATED THE BREAKUP OF AMERICAN TELEPHONE & TELEGRAPH CO IN THE REAGAN ADMINISTRATION SAID I THINK IT'S FAIRLY CREATIVE AND NOT NECESSARILY UNSOUND I HAD BEEN SKEPTICAL THAT THEY WOULD FIND NONHARMFUL AND USEFUL THINGS TO DO MR BAXTER ALSO SERVES AS COUNSEL TO SHEARMAN & STERLING THE NEW YORK LAW FIRM A SPOKESMAN FOR GOLDMAN DECLINED TO COMMENT NATIONAL GYPSUM IS BASED IN DALLAS USG IN CHICAGO GOLDMAN ADVISED NATIONAL GYPSUM ON A 16 BILLION LEVERAGED BUYOUT IN 1986 THAT GAVE A 44 EQUITY STAKE TO GOLDMAN AND ITS CLIENTS AND A 37 STAKE TO LAFARGE A FRENCH CEMENT COMPANY IN 1990 NATIONAL GYPSUM FILED FOR BANKRUPTCYLAW PROTECTION FROM CREDITORS AMID A RECESSIONARY HOUSING SLUMP THE GOLDMANRUN WATER STREET FUND THEN ACQUIRED BONDS WORTH ROUGHLY 30 MILLION WHICH HAD MORE THAN DOUBLED IN VALUE BY THE SPRING OF 1992 BY SELLING ITS STOCK TO LAFARGE GOLDMAN HAS EFFECTIVELY RESTORED THE FRENCH CONCERN'S INTEREST MOST LIKELY AT AN EVEN HEFTIER PROFIT FOR GOLDMAN'S CLIENTS WHO INVESTED IN THE WATER STREET FUND GOLDMAN ADVISED USG FORMERLY KNOWN AS US GYPSUM ON A 25 BILLION RECAPITALIZATION IN 1988 WHEN USG WAS TRYING TO AVOID A HOSTILE TAKEOVER AFTER USG BEGAN EFFORTS TO RESTRUCTURE ITS DEBT THE GOLDMAN FUND ACQUIRED BONDS THAT BY NOVEMBER 1991 WERE VALUED AT 1927 MILLION IN MAY OF THIS YEAR USG MADE A PREPACKAGED BANKRUPTCY FILING GIVING CREDITORS LED BY GOLDMAN BIG EQUITY STAKES BOTH CONCERNS HAVE SINCE EMERGED FROM BANKRUPTCYCOURT PROTECTION THE INVESTMENTS ARE LIKELY TO HAVE BEEN ALL THE MORE LUCRATIVE FOR GOLDMAN'S INVESTORS BECAUSE THE HOUSING INDUSTRY IS BEGINNING TO RECOVER AS A RESULT OF A STEEP DROP IN INTEREST RATES WHICH SHOULD CONTRIBUTE TO A REBOUND IN GYPSUM PRICES ONE OF THE THREE PARTNERS OVERSEEING THE FUND KENNETH BRODY WORKED AS A FUNDRAISER AND ADVISER FOR THE 1992 CLINTON PRESIDENTIAL CAMPAIGN EARLIER THIS YEAR THE ADMINISTRATION NAMED MR BRODY HEAD OF THE EXPORTIMPORT BANK JOE DAVIDSON CONTRIBUTED TO THIS ARTICLE 9311030063 931103 BUSINESS BRIEF HAHN AUTOMOTIVE WAREHOUSE INC FISCAL 4THPERIOD NET IS SEEN IN LINE WITH EXPECTATIONS ELI FUTERMAN PRESIDENT OF HAHN AUTOMOTIVE WAREHOUSE INC SAID THE COMPANY EXPECTS FISCAL FOURTHQUARTER EARNINGS REPORTS TO BE IN LINE WITH ANALYSTS' EXPECTATIONS OF 13 MILLION OR 32 CENTS A SHARE HAHN A ROCHESTER NY WAREHOUSE DISTRIBUTOR OF AUTOMOTIVE AFTERMARKET PARTS THAT WENT PUBLIC LAST JANUARY HAD PROFORMA NET INCOME OF 1 MILLION OR 28 CENTS A SHARE IN THE YEAREARLIER FOURTHQUARTER THE COMPANY EXPECTS TO ANNOUNCE EARNINGS IN THE NEXT 10 DAYS FOR THE QUARTER ENDED SEPT 30 HAHN ANNOUNCED FRIDAY THAT IT AGREED TO ACQUIRE AUTO WORKS HOLDINGS INC A UNIT OF CLOSELY HELD NORTHERN RETAIL CORP PHOENIX FOR ABOUT 13 MILLION THE ACQUISITION OF THE CHAIN OF 159 STORES WOULD DOUBLE HAHN'S ANNUAL SALES TO ABOUT 227 MILLION 9311030062 931103 SHAREHOLDER SUES OPTICAL DATA RICHARDSON TEXAS OPTICAL DATA SYSTEMS INC SAID A SHAREHOLDER FILED A LAWSUIT AGAINST THE COMPANY AND FOUR OF ITS OFFICERS IN FEDERAL COURT IN DALLAS ALLEGING THE COMPANY FAILED TO COMPLY WITH SECURITIES LAWS THE SUIT ALSO ALLEGES THAT THREE OFFICERS VIOLATED SECURITIES LAWS BY ACTING ON INSIDER INFORMATION IN THE SALE OF STOCK THE SUIT WAS FILED AS A PROPOSED CLASS ACTION THE COMPANY AND ITS OFFICERS SAID IN A NEWS RELEASE THAT THEY BELIEVE THE SUIT IS WITHOUT MERIT THE SHAREHOLDER SEEKS DAMAGES WHICH WERE UNSPECIFIED 9311030061 931103 BUSINESS BRIEF COMPUSA INC COMPUTER RETAILER RECORDS LOSS FOR FISCAL 1ST QUARTER COMPUSA INC WEIGHED DOWN BY HIGH INTEREST EXPENSES REPORTED A FISCAL FIRSTQUARTER LOSS OF 986000 OR FIVE CENTS A SHARE COMPARED WITH NET INCOME OF 13 MILLION OR EIGHT CENTS A YEAR EARLIER THE DALLAS COMPUTER SUPERSTORE OPERATOR SAID ITS REVENUE DURING THE PERIOD ENDED SEPT 30 ROSE 658 TO 4366 MILLION FROM 2634 MILLION THE COMPANY ATTRIBUTED ITS LOSS TO A TRIPLING OF STORE PREOPENING EXPENSES AND ABOUT 3 MILLION IN INTEREST EXPENSES TIED TO A RECENT OFFERING OF 110 MILLION IN DEBT OPERATING PROFIT WAS 976000 DOWN SHARPLY FROM 25 MILLION A YEAR EARLIER THE COMPANY SAID IT PLANS TO OPEN 30 NEW STORES IN FISCAL 1994 IN ADDITION TO THE 59 IT ALREADY OPERATES COMPUSA'S EARNINGS CAME AFTER THE CLOSE OF THE MARKET YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE COMPANY'S SHARES CLOSED UP 125 CENTS AT 2475 9311030060 931103 MARKETING & MEDIA ADVERTISING HARDEE'S SELECTS DEUTSCH/DWORIN AS NEW AGENCY FOR ITS ACCOUNT BY KEVIN GOLDMAN HARDEE'S ENDED ITS THREEMONTH SEARCH FOR A NEW ADVERTISING AGENCY BY TAPPING DEUTSCH/DWORIN NEW YORK TO HANDLE ITS ESTIMATED 75 MILLION ACCOUNT THE AGENCY WHOSE CLIENT ROSTER INCLUDES IKEA FURNITURE STORES LENS CRAFTERS EYEGLASS STORES AND G HEILEMAN BREWING'S COLT 45 MALT LIQUOR NOW FACES THE CHALLENGE OF INCREASING CONSUMER AWARENESS OF HARDEE'S AMID A GLUT OF AGGRESSIVE FASTFOOD ADVERTISING HARDEE'S A UNIT OF IMASCO LTD HAS ABOUT 3370 RESTAURANTS IN 40 STATES AND ITS SALES ARE GROWING STILL IT'S OFTEN THE THIRD OR FOURTH CHOICE IN CONSUMERS' MINDS BECAUSE OF THE HIGHER BRAND AWARENESS OF MCDONALD'S BURGER KING AND WENDY'S HARDEE'S HAS TRIED WITH LIMITED SUCCESS TO COMMUNICATE THE MESSAGE THAT ITS FOOD IS SUPERIOR IN QUALITY FEATURING SUCH FARE AS BISCUITS MADE FROM SCRATCH SLOGAN AFTER SLOGAN FAILED TO ACHIEVE THE RESULTS HARDEE'S HAD HOPED FOR THE CURRENT SLOGAN ARE YOU READY FOR SOME REAL FOOD WILL BE JETTISONED AND JOIN OTHER FAILED CAMPAIGNS ALL KINDS OF GOOD STUFF WE'RE OUT TO WIN YOU OVER AND A LITTLE CLOSER TO HOME THERE ARE AGENCIES THAT DO GREAT CREATIVE WORK FOR BUILDING A BRAND'S IMAGE AND THERE ARE AGENCIES THAT DO GREAT RETAIL ADVERTISING SAYS JERRY GRAMAGLIA HARDEE'S EXECUTIVE VICE PRESIDENT OF MARKETING DEUTSCH/DWORIN WAS CHOSEN FOR DOING BOTH THE COMPETITION ENDED FRIDAY AT THE SHERATON HOTEL IN RALEIGH NC NEAR HARDEE'S CORPORATE HEADQUARTERS IN ROCKY MOUNT A COMMITTEE OF HARDEE'S EXECUTIVES AND FRANCHISE REPRESENTATIVES UNANIMOUSLY CHOSE DEUTSCH/DWORIN OVER THE OTHER FINALISTS INTERPUBLIC GROUP'S LOWE & PARTNERS OMNICOM GROUP'S TBWA AND TATHAM EURO RSCG IN CHICAGO HARDEE'S ORIGINALLY LOOKED AT 20 AGENCIES AND NARROWED THAT LIST TO NINE AFTER VISITING THE AGENCIES THE POOL WAS FURTHER TRIMMED TO THE FINAL FOUR HARDEE'S DISMISSED ITS AD AGENCY WPP GROUP'S OGILVY & MATHER AFTER 8 1/2 YEARS AT THE TIME OGILVY DESCRIBED ITS SPLIT WITH HARDEE'S AS A MUTUAL DECISION THAT CAME AFTER HARDEE'S DECIDED TO DIVIDE THE ACCOUNT INTO CREATIVE AND MEDIA PORTIONS INSTEAD OF LETTING OGILVY HANDLE EVERYTHING HARDEE'S COMBINED WITH ITS SISTER OUTLET ROY ROGERS WITH 650 RESTAURANTS RANKS FOURTH IN THE INDUSTRY ACCORDING TO A RANKING OF THE TOP 100 CHAINS PUBLISHED ANNUALLY BY TECHNOMIC A CHICAGO CONSULTING COMPANY HARDEE'S AND ROY ROGERS REPORTED COMBINED SALES LAST YEAR OF 4 BILLION A 76 INCREASE FROM 1991 HARDEE'S ALONE HAD SALES OF ABOUT 33 BILLION IN 1992 UP 10 FROM 1991 DEUTSCH/DWORIN SAYS THE HARDEE'S ACCOUNT WILL BOOST ITS TOTAL 1993 BILLINGS TO 275 MILLION FROM 135 MILLION A YEAR EARLIER IN THE PAST YEAR THE AGENCY ALSO HAS WON THE AD ACCOUNTS OF PRUDENTIAL SECURITIES WITH 20 MILLION LENS CRAFTERS 35 MILLION TANQUERAY GIN 15 MILLION AND IKEA'S WEST COAST STORES 10 MILLION DONNY DEUTSCH THE AGENCY'S EXECUTIVE VICE PRESIDENT AND CREATIVE DIRECTOR ESTIMATES AN ADDITIONAL 20 TO 25 EMPLOYEES WILL BE HIRED DEUTSCH/DWORIN CURRENTLY HAS ABOUT 120 EMPLOYEES HARDEE'S ISN'T THE FIRST FASTFOOD CHAIN FOR THE AGENCY LAST YEAR IT HANDLED THE ADVERTISING FOR RAX RESTAURANTS A MIDWEST CHAIN FOR ABOUT 3 1/2 MONTHS THE AGENCY STOPPED WORK WHEN RAX SOUGHT PROTECTION UNDER FEDERAL BANKRUPTCY LAWS BOTH DEUTSCH/DWORIN AND HARDEE'S WERE CLOSEMOUTHED ABOUT THEIR FIRST AD CAMPAIGN DUE BY NEXT MARCH MR GRAMAGLIA OF HARDEE'S SAYS ALTHOUGH EACH OF THE FOUR FINAL AGENCIES SHOWED IMPRESSIVE CREATIVE WORK IT WAS DEUTSCH/DWORIN THAT PUSHED THE EDGE MORE THE NEW CAMPAIGN HE SAYS HAS THE POTENTIAL TO BE IRREVERENT AND EVEN MENTION THE NAMES OF RIVAL CHAINS ALTHOUGH BORING SIDEBYSIDE COMPARISONS WON'T BE USED HARDEE'S HAS A WONDERFUL PRODUCT AND A HOMEY FEELING UNLIKE MCDONALD'S WHICH HAS A MASSPRODUCED FEELING TO IT SAYS MR DEUTSCH THAT IS PART OF WHAT WE HOPE TO CONVEY IN THE ADVERTISING WE'RE NOT MCDONALD'S WITH HUNDREDS OF MILLIONS TO SPEND IN IMAGE ADVERTISING AND THEN SUPPLEMENT THAT WITH PRICE VALUE ADS SAYS MR GRAMAGLIA WE HAVE TO GET EVERYTHING INTO A SINGLE MESSAGE AND BUY OUR MEDIA MUCH MORE EFFECTIVELY THAN SOME OF OUR COMPETITORS HE NOTES THAT BECAUSE THE CHAIN ISN'T IN ALL 50 STATES HARDEE'S BUYS SPOTS IN 120 TELEVISION MARKETS RATHER THAN NETWORK TIME MR GRAMAGLIA SAYS EARLE PALMER BROWN BETHESDA MD IS IN NO DANGER OF BEING DROPPED AS THE AD AGENCY FOR ROY ROGERS EVEN IF DEUTSCH/DWORIN PRODUCES ADS THAT SEND HARDEE'S SALES SOARING DEUTSCH/DWORIN WILL BE RESPONSIBLE FOR CREATING THE TELEVISION RADIO AND OUTDOOR ADVERTISING DEUTSCH/DWORIN WILL WORK WITH NINE REGIONAL AGENCIES HIRED BY HARDEE'S THAT WILL BE RESPONSIBLE FOR MEDIA BUYING AND PROMOTIONAL PLANNING CASTROL INC PULLED ITS 30 MILLION MOTOR OIL ACCOUNT FROM WPP GROUP'S SCALI MCCABE SLOVES NEW YORK THE MOVE ADDS AN IRONIC TWIST TO THE FINAL CHAPTER OF THE PROTRACTED TALKS BETWEEN WPP AND INTERPUBLIC GROUP OVER THE SALE OF THE SCALI AGENCY TO INTERPUBLIC CASTROL A CLIENT OF SCALI MCCABE FOR 17 YEARS AWARDED ITS BIG ACCOUNT TO HOUSTON EFFLER HAMPEL & STEFANIDES THE NEW YORK AGENCY OWNED BY BOSTON AGENCY HOUSTON EFFLER & PARTNERS OFFICIALS AT CASTROL A UNIT OF BURMAH CASTROL PLC COULDN'T BE REACHED FOR COMMENT LARRY HAMPEL AND DEAN STEFANIDES PRINCIPALS OF HOUSTON EFFLER'S NEW YORK OFFICE AND FORMER SCALI EXECUTIVES COULDN'T BE REACHED FOR COMMENT SCOTT MESSINGER MANAGING DIRECTOR OF SCALI'S NEW YORK OFFICE SAID CASTROL LEFT BECAUSE OF A PHILOSOPHICAL AND TACTICAL DISAGREEMENT NOT BECAUSE THE COMPANY WAS DISPLEASED WITH THE LONGEXPECTED MERGER OUR PARTING OF THE WAYS HAD NOTHING TO DO WITH THE ISSUE OF SCALI'S OWNERSHIP MR MESSINGER SAID WE DEEPLY REGRET NOT BEING IN BUSINESS WITH THEM CASTROL'S EXIT FROM SCALI COMES THE DAY BEFORE INTERPUBLIC AND WPP ARE EXPECTED TO SIGN THE AGREEMENT MERGING SCALI WITH INTERPUBLIC'S LOWE GROUP A MUCH ANTICIPATED MOVE THAT WAS SET IN MOTION MORE THAN TWO YEARS AGO EXECUTIVES CLOSE TO THE SALE SAID SCALI'S SALE PRICE HAD BEEN ADJUSTED DOWNWARD BY A COUPLE OF MILLION DOLLARS TO REFLECT THE LOSS OF CASTROL REVENUE WPP AND INTERPUBLIC EXECUTIVES COULDN'T BE REACHED FOR COMMENT RARING TO GET INTO THE PITCH FOR BURGER KING CORP'S 100 MILLIONPLUS NATIONAL ADVERTISING ACCOUNT INTERPUBLIC GROUP'S LINTAS IS ALL BUT BEGGING FOR THE BUSINESS IN AN OPEN LETTER TO THE MIAMI COMPANY SET TO RUN IN TODAY'S EDITION OF THE MIAMI HERALD DEAR BURGER KING THE AD BEGINS AND GOES ON TO BOAST ABOUT THE AGENCY'S PAST WORK FOR DIET COKE AND INTERNATIONAL BUSINESS MACHINES'S PERSONAL COMPUTERS TWO OF THE HIGHPROFILE ACCOUNTS THAT HAVE MARCHED OUT LINTAS'S DOOR IN RECENT WEEKS LAST WEEK LINTAS ALSO LOST THE US ADVERTISING ACCOUNT FOR MOLSON BEER THE NEWSPAPER AD GOES ON TO ASK THE POINTED QUESTION SO IF WE'RE SO GOOD WHY DID WE GET FIRED IT DOESN'T REALLY PROVIDE AN ANSWER BUT NOTES THAT AFTER SELFEXAMINATION THE AGENCY HAS MADE A NUMBER OF CHANGES THE AGENCY EVEN OFFERS A REFERENCE SO DEAR BURGER KING GIVE YOUR NEIGHBOR AND OUR CLIENT BACARDI A CALL AND HEAR JUST HOW WELL WE CAN COOK UNDER PRESSURE SEE IN US A MARKETING PARTNER WHO IS READY WILLING AND ABLE DAVID NATHANSON A LINTAS CREATIVE DIRECTOR WROTE THE AD A SPOKESWOMAN SAID DEUTSCH/DWORIN A NEW YORK ADVERTISING AGENCY WAS DROPPED BY G HEILEMAN BREWING CO IN AUGUST YESTERDAY'S ADVERTISING COLUMN INCORRECTLY SAID THAT THE AGENCY IS STILL HANDLING HEILEMAN'S COLT 45 MALT LIQUOR ACCOUNT 9311030059 931103 BUSINESS BRIEF US HEALTHCARE INC HMO OPERATOR SAYS IT WON FIGHT OVER NEW YORK RATES US HEALTHCARE INC BLUE BELL PA SAID IT WON A BATTLE OVER PREMIUM RATES IT CHARGES CUSTOMERS IN NEW YORK STATE CLEARING THE WAY FOR AN AVERAGE 5 INCREASE IN ITS RATES IN 1994 THE HEALTH MAINTENANCE ORGANIZATION OPERATOR SAID A NEW YORK STATE SUPREME COURT JUDGE STAYED A 39 CUT IN PREMIUMS THAT HAD BEEN ORDERED SEPT 30 BY THE STATE'S INSURANCE DEPARTMENT THE COMPANY ORIGINALLY APPLIED FOR A 62 INCREASE AS A RESULT OF THE STAY US HEALTHCARE IS PUTTING INTO EFFECT THE HIGHEST RATES MOST RECENTLY APPROVED AN OFFICIAL SAID DURING THE 12MONTH PERIOD THAT STARTED OCT 1 PREMIUMS WILL AVERAGE ABOUT 5 HIGHER THAN THEY DID DURING THE PREVIOUS YEAR THE OFFICIAL SAID HE DIDN'T KNOW IF THE STATE WOULD APPEAL THE COURT DECISION SHARES OF US HEALTHCARE CLOSED AT 5050 UP 1 IN HEAVY NASDAQ STOCK MARKET TRADING YESTERDAY 9311030058 931103 BUSINESS BRIEF GRUBB & ELLIS CO LOSS NARROWED TO 638000 DURING THE THIRD QUARTER GRUBB & ELLIS CO BENEFITTING FROM AN IMPROVED COMMERCIAL BROKERAGE BUSINESS AND COST CONTROLS REPORTED A SHARPLY NARROWED THIRDQUARTER LOSS OF 638000 THE LOSS OF 30 CENTS A SHARE FOR THE SAN FRANCISCOBASED REALESTATE COMPANY COMPARES WITH A LOSS OF 42 MILLION OR 117 A SHARE A YEAR EARLIER THE MOST RECENT LOSS INCLUDES PAYMENT OF 599000 IN ACCRUED DIVIDENDS TO HOLDERS OF PREFERRED STOCK REVENUE IN THE QUARTER DECLINED 63 TO 509 MILLION FROM 543 MILLION ADJUSTED FOR THE SALE OF THE COMPANY'S NORTHERN CALIFORNIA RESIDENTIAL BROKERAGE BUSINESS THIS YEAR THE YEAREARLIER QUARTERLY REVENUE WAS 461 MILLION OR 104 LESS THAN THE MOST RECENT QUARTERLY REVENUE GRUBB & ELLIS OFFICIALS SAID THE QUARTERLY RESULTS IMPROVED ON STRENGTHENING OF THE FIRM'S COMMERCIAL BROKERAGE BUSINESS THEY SAID OPERATING EXPENSES ALSO FELL 9311030057 931103 BUSINESS BRIEF OLD KENT FINANCIAL CORP EDGEMARK TO BE ACQUIRED FOR 62 MILLION IN STOCK OLD KENT FINANCIAL CORP BASED IN GRAND RAPIDS MICH SAID IT WILL ACQUIRE EDGEMARK FINANCIAL CORP IN A STOCK SWAP VALUED AT 62 MILLION EDGEMARK FINANCIAL A BANK HOLDING COMPANY WITH EIGHT OFFICES IN THE CHICAGO AREA HAS ASSETS OF 534 MILLION OLD KENT FINANCIAL HAS 16 AFFILIATE BANKS WITH 213 OFFICES IN MICHIGAN AND ILLINOIS AT SEPT 30 1993 OLD KENT HAD TOTAL ASSETS OF 95 BILLION THE MERGER WHICH IS EXPECTED TO BE COMPLETED DURING THE SECONDQUARTER OF 1994 IS SUBJECT TO SHAREHOLDER AND REGULATORY APPROVALS 9311030056 931103 BUSINESS BRIEF NEOZYME CORP LIQUIDATION AND DISTRIBUTION OF CASH STOCK ARE PLANNED NEOZYME CORP CAMBRIDGE MASS SAID IT PLANS TO LIQUIDATE ITS BUSINESS DISTRIBUTING ABOUT 1675 IN CASH AND GENZYME CORP COMMON STOCK TO ITS SHAREHOLDERS NEOZYME WAS FORMED BY GENZYME TO ACCELERATE RESEARCH AND DEVELOPMENT OF SOME GENZYME PRODUCTS GENZYME SAID IT PLANNED TO EXERCISE OPTIONS TO PURCHASE NEOZYME'S TWO REMAINING DEVELOPMENT PROGRAMS IN ENZYME AND FETALCELL SEPARATION FOR ABOUT 49 MILLION NEOZYME WHICH HAS ABOUT 21 MILLION SHARES OUTSTANDING SAID IT PLANS TO MAKE ITS DISTRIBUTION DEC 21 TO SHAREHOLDERS OF RECORD DEC 14 IT CALLED A SPECIAL SHAREHOLDERS MEETING FOR DEC 20 TO CONSIDER PLANS OF LIQUIDATION AND DISSOLUTION TO TAKE PLACE BEFORE THE END OF 1993 IN NASDAQ STOCK MARKET TRADING NEOZYME'S SHARES CLOSED AT 1550 UNCHANGED THE ANNOUNCEMENT WAS MADE AFTER THE END OF ACTIVE TRADING 9311030055 931103 TECHNOLOGY BRIEF MERCK & CO TRIALS OF ROXIAM ARE HALTED ON WORD OF BLOOD DISORDER MERCK & CO SUSPENDED US CLINICAL TRIALS OF ITS SCHIZOPHRENIA DRUG ROXIAM AFTER EIGHT PATIENTS USING IT IN EUROPE DEVELOPED A SERIOUS BLOOD DISORDER THAT CONTRIBUTED TO ONE PATIENT'S DEATH A SPOKESMAN SAID NO CAUSEANDEFFECT RELATIONSHIP HAS BEEN ESTABLISHED BETWEEN USE OF ROXIAM AND THE BLOOD DISORDER KNOWN AS APLASTIC ANEMIA THE DISORDER IS A RARE CONDITION IN WHICH THE BONE MARROW FAILS TO PRODUCE BLOOD CELLS MERCK BOUGHT THE US MARKETING RIGHTS TO THE DRUG FROM SWEDISH DRUG MAKER ASTRA AB IN THE EARLY 1980S AND FILED EARLY THIS YEAR FOR REGULATORY APPROVAL TO MARKET IT IN THE US ASTRA HAS BEEN SELLING ROXIAM FOR NEARLY THREE YEARS IN A FEW EUROPEAN COUNTRIES ROY WALKER SPOKESMAN FOR AN ASTRAMERCK JOINT VENTURE SET UP TO SELL ROXIAM IN THE US SAID MERCK HAS WARNED DOCTORS IN CLINICAL TRIALS TO STOP USING THE DRUG HE ADDED THAT NO DECISION HAS BEEN MADE ON THE DRUG'S US FUTURE 9311030054 931103 BUSINESS BRIEF AUTODESK INC SOFTWARE FOR DESIGN SWAPS IS INTRODUCED AT LOW PRICE AUTODESK INC UNVEILED A LOWPRICED VERSION OF ITS WIDELY USED COMPUTERAIDED DESIGN PROGRAM SPARKING SOME FEARS THAT THE NEW SOFTWARE COULD TAKE SALES FROM THE ORIGINAL THE SAUSALITO CALIF COMPANY'S NEW AUTOCAD LT PROGRAM IS PRICED AT 495 OFF SHARPLY FROM 3750 FOR THE CURRENT VERSION OF AUTOCAD WHICH IS USED BY MORE THAN 900000 ARCHITECTS ENGINEERS AND OTHER DESIGN PROFESSIONALS THE NEW SOFTWARE BASED ON MICROSOFT'S WINDOWS OPERATING SYSTEM IS TARGETED AT PEOPLE WHO WANT TO SWAP DRAWINGS OR DATA WITH AUTOCAD USERS BUT CAN'T AFFORD THE LARGER PROGRAM CARY FULBRIGHT AN AUTODESK MARKETING MANAGER SAID SEVERAL KEY CAPABILITIES HAVE BEEN LEFT OUT SO THAT THE PRODUCT CAN'T BE A SUBSTITUTE FOR AUTOCAD NEVERTHELESS ANALYSTS SAID SOME INVESTORS APPARENTLY SUSPECT THAT THE NEW PROGRAM COULD HURT AUTOCAD SALES THE COMPANY'S STOCK LISTED ON THE NASDAQ STOCK MARKET FELL 4 YESTERDAY TO CLOSE AT 42 OFF 175 9311030053 931103 WHO'S NEWS BIOSOURCE INTERNATIONAL INC BIOSOURCE INTERNATIONAL INC CAMARILLO CALIF JAMES CHAMBERLAIN PRESIDENT AND CHIEF EXECUTIVE WAS APPOINTED TO THE ADDITIONAL NEWLY CREATED POST OF CHAIRMAN WITH THIS MAKER OF TEST KITS FOR BIOMEDICAL RESEARCH MR CHAMBERLAIN 45 WAS THE FOUNDER OF BIOSOURCE INDUSTRIES INC A PREDECESSOR COMPANY 9311030052 931103 BUSINESS BRIEF SUNCOR INC PROVED PROBABLE RESERVES DISCOVERED IN NEW REGION SUNCOR INC SAID IT HAS DISCOVERED PROVED AND PROBABLE OIL AND GAS RESERVES EQUIVALENT TO 10 MILLION BARRELS OF OIL IN A PART OF ALBERTA THAT IS A NEW EXPLORATION REGION FOR THE COMPANY A SPOKESMAN FOR SUNCOR WHICH IS 55OWNED BY SUN CO RADNOR PA SAID THE TORONTO PETROLEUM COMPANY PLANS TO SPEND A TOTAL OF 50 MILLION CANADIAN DOLLARS 381 MILLION OVER TWO YEARS DEVELOPING ITS NEW DISCOVERIES AND BUILDING OILPRODUCING FACILITIES THIS SUM INCLUDES C15 MILLION ALREADY SPENT HE SAID UNDER ITS DEVELOPMENT PLANS SUNCOR SAID IT ASKED FOR 35 MILLION CUBIC FEET A DAY OF GASPROCESSING CAPACITY IN A NEW ALBERTA PLANT SCHEDULED TO OPEN BY 1995 SUNCOR SAID IT HAS DRILLED 11 WELLS IN THE GRANDE PRAIRIE ALBERTA AREA WHERE IT MADE THE DISCOVERIES AND IS DRILLING ANOTHER FOUR IT SAID THAT TWO OF THE WELLS DRILLED STRUCK OIL FOUR FOUND GAS AND TWO WERE UNSUCCESSFUL THE REMAINING THREE WELLS ARE BEING EVALUATED SUNCOR SAID ITS ESTIMATE OF NEW RESERVES DISCOVERED IN THE GRANDE PRAIRIE REGION IS PRELIMINARY 9311030051 931103 WHO'S NEWS CAPTIAL CITIES/ABC INC CAPITAL CITIES/ABC INC NEW YORK STEVEN M BORNSTEIN 41 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE ESPN INC SPORTS CABLE NETWORK UNIT AT THIS PUBLISHING AND BROADCASTING COMPANY WAS NAMED TO THE ADDITIONAL TITLE OF CORPORATE VICE PRESIDENT OF THE PARENT 9311030050 931103 WHO'S NEWS DONNELLY CORP DONNELLY CORP HOLLAND MICH DOUGLAS C RUCH WAS NAMED VICE PRESIDENT FOR INTERIOR SYSTEMS AT THIS AUTOMOTIVE SUPPLIER HE WILL BE RESPONSIBLE FOR PRODUCTION OF LIGHTS AND TRIM FOR AUTOMOTIVE INTERIORS MARYAM KOMEJAM ALSO WAS NAMED A VICE PRESIDENT WITH RESPONSIBILITY FOR COMMUNICATIONS INSURANCE AND ENVIRONMENTAL MATTERS 9311030049 931103 TCBY HAS PACT FOR CHINA STORES LITTLE ROCK ARK TCBY ENTERPRISES INC'S FRANCHISING UNIT SAID IT HAS SIGNED AN AGREEMENT TO OPEN 23 FROZENYOGURT STORES IN CHINA TOP GREEN INTERNATIONAL A PARTNERSHIP BETWEEN NEW YORK BUSINESSMAN NEIL FRIEDMAN AND HONG KONG BUSINESSMAN STERRY CHONG WILL BE THE MASTER FRANCHISEE FOR THE CHINA STORES THE FRANCHISING UNIT IS TCBY SYSTEMS INC TCBY SYSTEMS SAID THE YOGURT WILL BE PRODUCED BY A HUZHOU DAIRY THE FIRST STORE WILL OPEN IN SHANGHAI IN THE FALL OF 1994 TCBY ANNOUNCED THE AGREEMENT DURING TRADING HOURS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE TCBY ENTERPRISES SHARES CLOSED AT 6375 UP 50 CENTS OR 85 9311030048 931103 WHO'S NEWS TIME WARNER INC TIME WARNER INC NEW YORK BETSY BRUCE 42 YEARS OLD WAS NAMED PRESIDENT OF TIMELIFE VIDEO & TELEVISION A UNIT OF TIME LIFE INC MS BRUCE WAS FORMERLY A VICE PRESIDENT AT THE HBO CABLE UNIT OF THIS MEDIA COMPANY SHE SUCCEEDS CANDICE CARPENTER WHO LEFT THE COMPANY 9311030047 931103 BUSINESS BRIEF HUDSON FOODS INC POULTRY PRODUCTS FIRM SAYS NET ROSE SHARPLY IN QUARTER HUDSON FOODS INC REPORTED THAT NET INCOME IN THE FISCAL FOURTHQUARTER ENDED OCT 2 MORE THAN DOUBLED TO 48 MILLION OR 29 CENTS A SHARE FROM 18 MILLION OR 12 CENTS A SHARE A YEAR EARLIER SALES CLIMBED 18 TO 243 MILLION FROM 2063 MILLION THE ROGERS ARK POULTRY PRODUCTS CONCERN SAID SALES ROSE IN PART DUE TO EXPANDED CLUB STORE BUSINESS IT SAID PROFITS ROSE AS A RESULT OF IMPROVED PLANT EFFICIENCIES AND HIGHER POULTRY PRICES THE COMPANY SAID POULTRY PRICES HAVE RISEN ABOUT 77 SO FAR IN CALENDAR 1993 AND ABOUT 7 DURING ITS FOURTHQUARTER FOR THE FISCAL YEAR NET INCOME ROSE TO 159 MILLION OR 101 A SHARE FROM 22 MILLION OR 15 CENTS A SHARE SALES ROSE 14 TO 9205 MILLION FROM 8092 MILLION 9311030046 931103 THE TRADE REVOLUTION BY DAVID HALE ON NOV 9 THE WORLD WILL CELEBRATE THE FOURTH ANNIVERSARY OF THE FALL OF THE BERLIN WALL ON NOV 17 THE HOUSE WILL VOTE ON THE NORTH AMERICAN FREE TRADE AGREEMENT WHILE THESE TWO EVENTS MAY SEEM UNCONNECTED THEY ARE CLOSELY RELATED SINCE THE FALL OF THE WALL THERE HAS BEEN A COLLAPSE OF STATEBASED ECONOMIC SYSTEMS ALL OVER THE WORLD NOT JUST IN EASTERN EUROPE AS A RESULT FOUR BILLION PEOPLE IN EURASIA LATIN AMERICA AND AFRICA ARE ATTEMPTING TO REJOIN THE GLOBAL MARKETPLACE AFTER DECADES OF LIVING UNDER MARXIST OR MERCANTILIST ECONOMIC REGIMES THE REBIRTH OF A GLOBAL MARKET ECONOMY ENCOMPASSING FIVE BILLION PEOPLE WILL CREATE BOTH CHALLENGES AND OPPORTUNITIES FOR THE OLD INDUSTRIAL NATIONS THERE WILL BE A SURGE IN THE POTENTIAL SUPPLY OF LOWCOST LABOR AGRICULTURAL OUTPUT AND RAW MATERIALS WHILE THE NEWLY MARKETORIENTED ECONOMIES WILL HAVE AN INSATIABLE APPETITE FOR CAPITAL GOODS CONSUMER GOODS AND SERVICES FROM THE OLD INDUSTRIAL COUNTRIES IN FACT WHILE THE NEWLY MARKETORIENTED ECONOMIES ACCOUNT FOR ONLY ABOUT A THIRD OF WORLD OUTPUT THEY HAVE 80 OF THE WORLD'S PEOPLE AND WILL ACCOUNT FOR MORE THAN 95 OF THE GROWTH IN WORLD LABOR SUPPLY DURING THE NEXT HALF CENTURY THESE OPPORTUNITIES IN THE NEW MARKET ECONOMIES HAVE ALREADY HAD A MAJOR IMPACT ON PRIVATESECTOR TRADE AND INVESTMENT CAPITAL FLOWS TO DEVELOPING COUNTRIES' STOCK MARKETS HAVE SHOT UP TO MORE THAN 20 BILLION THIS YEAR FROM ONLY 13 BILLION IN 1988 WHILE INTERNATIONAL BOND FINANCING WILL EXCEED 50 BILLION COMPARED WITH 286 BILLION IN 1990 AS A RESULT OF THIS CAPITAL FLOOD THE VOLUME OF PRIVATIZATIONS IN THE DEVELOPING COUNTRIES HAS EXPANDED FROM 26 BILLION IN 1988 TO 232 BILLION LAST YEAR OR NEARLY HALF THE WORLD TOTAL THE DEVELOPING COUNTRIES HAVE BEEN ONE OF THE FEW GROWTH LOCOMOTIVES IN THE WORLD ECONOMY IN RECENT YEARS SINCE 1990 FOR EXAMPLE US EXPORT SALES TO LATIN AMERICA HAVE INCREASED AT A 16 ANNUAL RATE COMPARED WITH ONLY 35 FOR EXPORTS TO THE INDUSTRIAL COUNTRIES WHILE PRIVATESECTOR PLAYERS HAVE MOVED QUICKLY AND EFFECTIVELY TO TAKE ADVANTAGE OF THE OPPORTUNITIES CREATED BY THE SPREAD OF LIBERAL ECONOMIC IDEAS TO FORMERLY STATEDOMINATED ECONOMIC SYSTEMS GOVERNMENTS IN THE OLD INDUSTRIAL NATIONS HAVE SEVERELY MISMANAGED THE FIRST STAGE OF THEIR ADJUSTMENT TO THE POSTCOLD WAR POLITICAL ORDER INSTEAD OF PROMOTING ECONOMIC GROWTH AFTER 1990 THE G7 NATIONS PURSUED RECESSIONARY FISCAL AND MONETARY POLICIES BY PUTTING A MISPLACED EMPHASIS ON EXCHANGERATE TARGETS IN EUROPE AND ON RESTRAINING INFLATION IN THE US AND JAPAN AS A RESULT OF THE POOR PERFORMANCE OF THE INDUSTRIAL ECONOMIES THERE HAS BEEN AN UPSURGE OF PROTECTIONIST SENTIMENT PRACTICALLY EVERYWHERE THE URUGUAY ROUND OF THE GENERAL AGREEMENT OF TARIFFS AND TRADE HAS STALLED OVER FARM SUBSIDIES THE EUROPEAN COMMUNITY HAS IMPOSED NUMEROUS BARRIERS ON EAST EUROPEAN GOODS AND THERE IS STRONG OPPOSITION IN CONGRESS TO NAFTA DESPITE THE BOOM IN US EXPORTS TO MEXICO SINCE 1988 NAFTA'S DEFEAT IN THE HOUSE VOTE SCHEDULED FOR MIDNOVEMBER WOULD BE A MAJOR BLOW TO THE GLOBAL ECONOMIC INTEGRATION OF ALL FORMERLY STATEDOMINATED ECONOMIC SYSTEMS IT WOULD UNDERMINE THE CREDIBILITY OF THE CLINTON ADMINISTRATION AS IT TRIES TO COMPLETE THE GATT TALKS WITH EUROPE AND WOULD ENCOURAGE THE EC TO CONTINUE BLOCKING EXPORTS FROM EASTERN EUROPE AND RUSSIA AS NAFTA ITSELF HAS EMERGED AS THE FOCAL POINT FOR THE FEARS AND ANXIETIES OF US WORKERS ABOUT COMPETITION WITH ALL LOWWAGE COUNTRIES ITS DEFEAT WOULD PROBABLY ENCOURAGE CONGRESSIONAL ATTEMPTS TO RESTRICT US TRADE WITH OTHER NEWLY MARKETORIENTED ECONOMIES WHILE AMERICANS DO NOT ASSOCIATE THE ECONOMIC POLICY TRANSFORMATION NOW OCCURRING IN MEXICO WITH THE UPHEAVALS THAT HAVE OCCURRED IN THE FORMER COMMUNIST WORLD SINCE 1989 THE LINKS ARE VERY STRONG THE FIRST GREAT DEFINING POLITICAL EVENT OF THE 20TH CENTURY WAS NEITHER WORLD WAR I NOR THE RUSSIAN REVOLUTION IT WAS THE MEXICAN REVOLUTION OF 1910 BEFORE THE 1910 REVOLUTION MEXICO HAD BOASTED A HIGH LEVEL OF FOREIGN INVESTMENT AS WELL AS FREE TRADE IN 1900 MEXICO AND OTHER LATIN AMERICAN NATIONS HAD EXPORT/GDP RATIOS AS HIGH AS 20 COMPARED WITH ONLY 7 IN 1991 AFTER THE REVOLUTION MEXICO SEVERELY RESTRICTED FOREIGN TRADE AND INVESTMENT SETTING A PRECEDENT FOR ECONOMIC NATIONALISM THAT WOULD BE WIDELY IMITATED ELSEWHERE IN THE THIRD WORLD DURING THE SECOND HALF OF THIS CENTURY BY THE 1970S MEXICO'S TRADE POLICIES HAD PRODUCED AN ECONOMIC SYSTEM THAT WAS HIGHLY INEFFICIENT AND CORRUPT PROVIDING WEALTH FOR THE PRIVILEGED OWNERS OF PROTECTED INDUSTRIES AND LOW WAGES FOR EVERYONE ELSE MEXICO COULD NOT SHARE IN THE PROSPERITY THAT WAS ENJOYED BY THE TRADEORIENTED ECONOMIES OF EAST ASIA DURING THE 1970S AND 1980S BECAUSE ITS BUSINESS ELITES HAD NO INCENTIVES TO EXPORT AND WERE IN SOME CASES AS INCOMPETENT AS THE COMMUNIST NOMENKLATURA OF EASTERN EUROPE IN 1992 THE US HAD A 5 BILLION TRADE SURPLUS WITH MEXICO COMPARED WITH A 75 BILLION TRADE DEFICIT WITH EAST ASIA BECAUSE AMERICAN FIRMS ACCOUNTED FOR ABOUT 70 OF MEXICO'S IMPORTS AND A MUCH SMALLER SHARE OF ASIA'S IF NAFTA HAD BEEN ENACTED 30 YEARS AGO THOUSANDS OF JOBS THAT MIGRATED TO ASIA'S EXPORTORIENTED INDUSTRIES AFTER THE 1960S WOULD HAVE GONE TO MEXICO AND BOOSTED THE WHOLE NORTH AMERICAN ECONOMY BY PRODUCING A SURGE IN MEXICAN WAGES COMPARABLE TO THE 20FOLD EXPANSION THAT OCCURRED IN EAST ASIAN INCOMES MANY PROGRESSIVE CRITICS OF NAFTA SUCH AS THE AFLCIO ARE RELUCTANT TO ACKNOWLEDGE THE RELATIONSHIP BETWEEN MEXICAN POVERTY AND THE COUNTRY'S TRADITION OF PROTECTIONISM BUT THE FACT IS THEY BECAME SELFREINFORCING IN THE MODERN ERA MEXICO SUFFERED FROM LOW WAGES AND GOVERNMENT ATTEMPTS TO SUPPRESS THE TRADE UNIONS FOR THE SAME REASONS EASTERN EUROPE DID THE STATE DOMINATION OF THE ECONOMIC SYSTEM AND THE PROTECTED NATURE OF THE MANUFACTURING SECTOR ENCOURAGED THE PRODUCTION OF SHODDY GOODS THAT COULD NOT WITHSTAND FOREIGN COMPETITION IN FACT SINCE TRADE LIBERALIZATION BEGAN SIX YEARS AGO MEXICO HAS LOST A LARGE NUMBER OF JOBS IN ITS UNCOMPETITIVE MANUFACTURING SECTORS SUCH AS TEXTILES THE ONLY WAY MEXICO COULD BREAK OUT OF THIS STALEMATE OF LOW PRODUCTIVITY AND POVERTY WAS TO OPEN ITS ECONOMY PRESIDENT CARLOS SALINAS AND PRESIDENT BUSH CONCEIVED OF NAFTA AS A MEANS OF BOLSTERING FOREIGN INVESTOR CONFIDENCE THAT THE REFORMS WOULD BE ENDURING SUCH CONFIDENCE IS ESSENTIAL TO PROMOTING MEXICAN INVESTMENT BECAUSE THE INFLATIONARY ECONOMIC POLICIES OF THE MODERN ERA HAVE DEPRESSED THE COUNTRY'S SAVINGS RATE AND THUS MADE MEXICO TEMPORARILY DEPENDENT ON FOREIGN CAPITAL INFLOWS TO REBUILD THE ECONOMY WHILE EVERY WESTERN HEMISPHERE NATION IS NOW A CAPITAL IMPORTER MEXICO'S EXTERNAL SAVINGS DEFICIT IS ONE OF THE LARGEST 5 TO 6 OF GROSS DOMESTIC PRODUCT AND WOULD BE DIFFICULT TO FINANCE WITHOUT A HIGH LEVEL OF INTERNATIONAL CONFIDENCE IN THE COUNTRY'S ECONOMIC FUTURE MEXICO EMBRACED PROTECTIONIST TRADE AND INVESTMENT POLICIES AFTER 1910 IN ORDER TO ESCAPE FROM YANKEE IMPERIALISM IT WOULD BE RICHLY IRONIC IF ITS EFFORTS TO ESCAPE FROM THE MISTAKES OF THAT REVOLUTION WERE NOW UNDERMINED BY A LOSS OF ECONOMIC SELFCONFIDENCE IN THE US THE US CANNOT STOP MEXICO FROM CORRECTING THE POLICY ERRORS THAT FOLLOWED THE 1910 REVOLUTION IT CAN EITHER ATTEMPT TO GUIDE THE PROCESS THROUGH AGREEMENTS SUCH AS NAFTA WHICH CONTAINS MORE PROTECTION FOR THE ENVIRONMENT AND US WORKERS THAN PREVIOUS TRADE AGREEMENTS OR IT CAN LET MEXICO ACT UNILATERALLY NAFTA MEXICO WILL NOT RETURN TO THE CORPORATIST AND PROTECTIONIST POLICIES THAT UNDERMINED ITS ECONOMY IN THE PAST INSTEAD IT WILL PROBABLY ENACT MUCH OF NAFTA UNILATERALLY AND THEN AGGRESSIVELY PROMOTE BOTH INVESTMENT AND EXPORTS THROUGH A CHEAP EXCHANGE RATE AND A BENIGN REGULATORY ENVIRONMENT TOWARD BUSINESS INCLUDING LESS RIGOROUS ENVIRONMENTAL POLICIES THAN NAFTA WOULD REQUIRE CONGRESS CAN PASS NAFTA AND THUS SET AN EXAMPLE OF GUIDED CHANGE IN TRADE POLICY FOR THE OTHER THREE BILLION TO FOUR BILLION PEOPLE LIVING IN FORMERLY STATEDOMINATED ECONOMIC SYSTEMS WHO NOW WANT TO RETURN TO THE GLOBAL MARKETPLACE OR BY FAILING TO PASS NAFTA IT CAN ENCOURAGE THEM TO ACT UNILATERALLY SUCH UNILATERALISM WOULD ENCOURAGE THEM TO PURSUE EXPORT GROWTH THROUGH CURRENCY DEPRECIATION PERMISSIVE ENVIRONMENTAL REGULATION RESTRICTIONS ON TRADE UNIONS AND OTHER REPRESSIVE POLICIES MORE REMINISCENT OF STATIST ECONOMIC SYSTEMS THAN OF THE WESTERN DEMOCRATIC AND CAPITALIST MODEL THEY HAVE BEEN TRYING TO EMULATE SINCE 1989 MR HALE IS CHIEF ECONOMIST OF KEMPER CORP IN CHICAGO 9311030045 931103 INTERNATIONAL BRIEF WINTERTHUR SWISS INSURANCE CO COMPANY SEES 1993 EARNINGS CLEARLY HIGHER' THAN 1992'S WINTERTHUR SWISS INSURANCE CO ANNOUNCED THAT IT WILL ACHIEVE A CLEARLY HIGHER PROFIT IN 1993 THAN IN 1992 DESPITE THE CONTINUALLY DIFFICULT ECONOMIC ENVIRONMENT THE COMPANY'S 1992 GROUP NET INCOME SLIPPED 6 TO 247 MILLION FRANCS 1645 MILLION FROM 2629 MILLION FRANCS IN 1991 THE COMPANY ALSO SAID THAT IT EXPECTS ITS GROSS PREMIUM INCOME TO RISE ABOUT 4 THIS YEAR AFTER A 6 RISE IN 1992 TO 155 BILLION FRANCS PETER SPAELTI CHAIRMAN AND CHIEF EXECUTIVE OFFICER ATTRIBUTED THE POSITIVE FORECAST MAINLY TO AN IMPROVEMENT IN THE ENVIRONMENT FOR INSURERS AN INCREASE IN THE COMPANY'S EARNINGS POWER AND THE ELIMINATION OF SOME SPECIAL FACTORS THAT PRESSURED RESULTS IN 1992 9311030044 931103 WHO'S NEWS PRECISION CASTPARTS CORP PRECISION CASTPARTS CORP PORTLAND ORE HARRY C STONECIPHER 57 YEARS OLD WAS NAMED CHAIRMAN OF THIS MAKER OF COMPONENTS FOR AEROSPACE AND OTHER INDUSTRIES MR STONECIPHER ALREADY A DIRECTOR OF THE COMPANY SUCCEEDS EDWARD H COOLEY 71 WHO WILL REMAIN A DIRECTOR 9311030043 931103 INTERNATIONAL BRIEF FURUKAWA ELECTRIC CO JAPANESE CONCERN POSTS DROP OF 19 IN PRETAX EARNINGS FURUKAWA ELECTRIC CO A MAJOR JAPANESE WIRE AND CABLE MAKER REPORTED THAT ITS UNCONSOLIDATED PRETAX PROFIT DROPPED 19 DURING THE FISCAL FIRST HALF ENDED SEPT 30 FROM THE YEAR BEFORE HURT BY WEAK DEMAND IN JAPAN AND FALLING METALS PRICES PRETAX PROFIT WAS 294 BILLION YEN 272 MILLION IN THE HALF COMPARED WITH 360 BILLION YEN IN THE YEAREARLIER PERIOD THE COMPANY SAID THE WEAKNESS OF ITS BIGGEST CUSTOMERS SUCH AS JAPAN'S CAR MAKERS WHICH HAVE BEEN HIT BY A SHARP FALLOFF IN SALES WAS A MAJOR FACTOR BEHIND ITS WEAK RESULTS DURING THE LATEST FISCAL HALF FURUKAWA SAID IT WAS ABLE TO POST A 10 RISE IN NET PROFIT FROM THE YEAREARLIER PERIOD ON THE STRENGTH OF AN EXTRAORDINARY PROFIT FROM THE SALE OF SOME OF THE COMPANY'S STOCK HOLDINGS 9311030042 931103 INTERNATIONAL BRIEF YOKOGAWA ELECTRIC CORP FISCAL 1ST HALF'S PRETAX PROFIT FELL 50 ON 4 SALES DECLINE YOKOGAWA ELECTRIC CORP AN INDUSTRIALINSTRUMENTS MAKER IN TOKYO REPORTED YESTERDAY THAT ITS PRETAX PROFIT SKIDDED 50 TO 233 BILLION YEN 215 MILLION FOR THE FISCAL FIRST HALF ENDED SEPT FOR THE YEAREARLIER PERIOD THE COMPANY REPORTED PRETAX PROFIT OF 466 BILLION YEN NET PROFIT FOR THE LATEST PERIOD FELL 62 TO 908 MILLION YEN OR 350 YEN A SHARE FROM 238 BILLION YEN OR 917 YEN A SHARE A YEAR EARLIER SALES FOR THE LATEST PERIOD FELL 4 TO 8645 BILLION YEN FROM 9002 BILLION YEN A YEAR EARLIER THE COMPANY SAID ITS OPERATING ENVIRONMENT DURING THE FIRST HALF WAS SEVERE GIVEN THE CONTINUED MOVE AMONG INDUSTRIES TO CUT CAPITAL INVESTMENT IN PLANT AND EQUIPMENT YOKOGAWA SAID SLUGGISH DEMAND AND THE YEN'S RAPID APPRECIATION IN THE CURRENCY MARKETS ACCOUNTED FOR ITS EARNINGS WOES 9311030041 931103 CREDIT RATINGS SEQUA CORP NEW YORK RECEIVED A RATINGS UPGRADE FROM MOODY'S INVESTORS SERVICE INC ON ITS SENIOR UNSECURED DEBT SEQUA IS A DIVERSIFIED MANUFACTURER WITH A FOCUS ON AEROSPACE MOODY'S CITED A FAVORABLE CERTIFICATION RULING FROM FEDERAL AVIATION AUTHORITIES AND A REVISED BANKCREDIT AGREEMENT ABOUT 125 MILLION IN DEBT IS AFFECTED MOODY'S RAISED ITS SENIOR UNSECURED DEBT RATING OF SEQUA TO SINGLEB1 FROM SINGLEB2 WHILE CONFIRMING ITS SUBORDINATEDDEBT RATING OF SINGLEB3 9311030040 931103 BUSINESS BRIEF HEALTHVEST INC LENDERS TO RESTRUCTURE DEBT AS BANKRUPTCY PLAN REQUIRES HEALTHVEST INC SAID IT HAS RECEIVED A COMMITMENT FROM ITS LENDERS TO RESTRUCTURE 217 MILLION OF SENIOR DEBT INTO A FIVEYEAR LOAN THE INTEREST RATE DIDN'T CHANGE THE AUSTIN TEXAS COMPANY SAID THE RESTRUCTURING WAS A CONDITION OF THE BANKRUPTCY COURT'S APPROVAL OF ITS PLAN OF REORGANIZATION OF HEALTHCARE INTERNATIONAL INC UNDER THE PLAN HEALTHVEST A REALESTATE INVESTMENT TRUST AND HEALTHCARE A HOSPITALMANAGEMENT COMPANY WILL MERGE HEALTHVEST SAID IT HAS RECEIVED A COMMITMENT FROM ANOTHER LENDER FOR A THREEYEAR 20 MILLION WORKING CAPITAL FACILITY LAST WEEK A FEDERAL BANKRUPTCY COURT IN AUSTIN APPROVED THE BANKRUPTCY PLAN CONTINGENT ON THE DEBT RESTRUCTURING AGREEMENT AND ON APPROVAL BY THE INTERNAL REVENUE SERVICE 9311030039 931103 BUSINESS BRIEF GUILFORD TRANSPORTATION INDUSTRIES CANADA PACIFIC LINES SOUGHT TO FORM A FREIGHT RAILROAD GUILFORD TRANSPORTATION INDUSTRIES SAID IT WILL SEEK TO FORM A NEW FREIGHT RAILROAD IN CANADA'S NEW BRUNSWICK PROVINCE TO OPERATE ON CERTAIN LINES BEING ABANDONED BY CANADIAN PACIFIC LTD GUILFORD'S NEW BRUNSWICK RAILROAD WOULD CONNECT WITH ITS SPRINGFIELD TERMINAL RAILWAY IN MAINE THE PROPOSAL IS SUBJECT TO AN AGREEMENT WITH CANADIAN PACIFIC'S RAILWAY ARM CP RAIL SYSTEM AND TO GOVERNMENT AUTHORIZATION TERMS OF THE PROPOSAL WEREN'T DISCLOSED A CP RAIL SPOKESMAN SAID THE MONTREAL COMPANY HAS HAD PRELIMINARY TALKS WITH SEVERAL OPERATORS INCLUDING GUILFORD INTERESTED IN USING LINES THAT CP PLANS TO SHED EAST OF SHERBROOKE QUEBEC GUILFORD NORTH BILLERICA MASS OWNS A NEW ENGLAND REGIONAL RAILROAD SYSTEM 9311030038 931103 BUSINESS BRIEF HARLEYSVILLE GROUP INC AMERICAN COMMUNITY UNIT IS ACQUIRED FOR 44 MILLION HARLEYSVILLE GROUP INC SAID IT COMPLETED THE ACQUISITION OF LAKE STATES INSURANCE CO A PROPERTY AND CASUALTY UNIT OF AMERICAN COMMUNITY MUTUAL INSURANCE CO FOR 44 MILLION THE REGIONAL INSURANCE HOLDING COMPANY BASED IN HARLEYSVILLE PA SAID LAKE STATE HELPS THE COMPANY ESTABLISH A FIRM PRESENCE IN MICHIGAN AND THE MIDWEST LAKE STATES INSURANCE COMPANY BASED IN TRAVERSE CITY MICH HAD 573 MILLION IN DIRECTWRITTEN PREMIUMS IN 1992 AND ASSETS AT YEAR END TOTALING 706 MILLION HARLEYSVILLE SAID IT EXPECTS THE ACQUISITION TO HAVE A POSITIVE IMPACT ON RESULTS WITHIN THE FIRST YEAR 9311030037 931103 BUSINESS BRIEF NASHUA CORP LOSS FOR THE FOURTHQUARTER EXPECTED AT COMPUTER UNIT NASHUA CORP SAID IT EXPECTS ITS COMPUTERPRODUCTS GROUP TO SHOW A FOURTHQUARTER LOSS AND IS CONTEMPLATING TAKING A MATERIAL RESTRUCTURING CHARGE THE NASHUA NH COMPANY SAID IT EXPECTS THE GROUP TO SHOW A SIGNIFICANTLY GREATER LOSS THAN THE 600000 LOSS IT POSTED IN THE 1993 THIRD QUARTER IN THE 1992 FOURTH QUARTER THE GROUP HAD A PROFIT FROM OPERATIONS OF 16 MILLION NASHUA SAID A WEAK DISKDRIVE MARKET AND A REDUCTION IN ORDERS FROM A MAJOR CUSTOMER HAS LED TO A FURTHER DECLINE IN ORDERS FOR ITS THINFILM DISKS THE COMPANY SAID IT WILL CUT COSTS TO RESTORE THE COMPUTERPRODUCTS UNIT TO PROFITIBILITY NASHUA WHICH ALSO HAS INTERESTS IN COATED PAPER PRODUCTS AND OFFICE SUPPLIES DECLINED TO PROVIDE AN OVERALL EARNINGS ESTIMATE FOR THE FOURTH QUARTER IN THE 1992 FOURTH QUARTER NASHUA HAD NET INCOME OF 22 MILLION OR 35 CENTS A SHARE THE QUARTER INCLUDED GAINS OF 900000 FROM THE SALE OF STOCK AND 12 MILLION FROM SETTLEMENT OF LITIGATION 9311030036 931103 BUSINESS BRIEF NEW YORK TIMES CO ELECTRONIC JOBHUNT SYSTEM WILL BE ON LINE THIS MONTH NEW YORK TIMES CO SAID IT WILL OFFER A NEW INTERACTIVE SYSTEM FOR EMPLOYERS TO ADVERTISE JOBS AND FOR CANDIDATES TO SEND THEM RESUMES INFORMATION KINETICS INC OF CHICAGO DEVELOPED AND WILL ADMINISTER THE SERVICE CALLED NEW YORK TIMES FASTRAK AN INFORMATION KINETICS SPOKESMAN SAID THE SYSTEM IS ITS FIRST IN OPERATION FOR A NEWSPAPER ALTHOUGH THE COMPANY SAID IT SIGNED A PRELIMINARY AGREEMENT WITH THE CHICAGO TRIBUNE IN JUNE FASTRAK WHICH BEGINS NOV 14 LETS JOBSEEKERS REGISTER THEIR RESUMES IN A DATABASE AT THE NEWSPAPER FOR A 40 FEE FOR SIX MONTHS THEY CAN ANSWER RECRUITMENT ADS IN THE NEWSPAPER BY USING A PHONE TO SEND THEIR RESUMES INTO A DATABASE ADVERTISERS WILL GET PERIODICALLY UPDATED DISKS CONTAINING THE RESUMES COMPANIES ALSO WILL BE ABLE TO PLACE CANDIDATE REQUESTS THROUGH THE SYSTEM 9311030035 931103 BUSINESS BRIEF CAPITAL RE CORP DEBT REINSURER'S NET INCOME ROSE 49 FOR THIRDQUARTER CAPITAL RE CORP SAID THIRDQUARTER NET INCOME ROSE 49 BECAUSE OF A SURGE IN NEW BUSINESS AND PREMIUMS EARNED EARLIER THAN EXPECTED NET ROSE TO 96 MILLION OR 64 CENTS A SHARE FROM 64 MILLION OR 43 CENTS A SHARE A YEAR AGO FOR THE NINE MONTHS EARNINGS WERE UP 28 TO 277 MILLION OR 186 A SHARE FROM 217 MILLION OR 159 A SHARE SHARES OF THE NEW YORK COMPANY A FINANCIAL DEBT REINSURER SLIPPED 125 CENTS TO 26 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9311030034 931103 BUSINESS BRIEF AU BON PAIN CO THIRDQUARTER NET ROSE 25 ON STRONG REVENUE AT CAFES AU BON PAIN CO REPORTED A 25 GAIN IN THIRDQUARTER NET INCOME AS SALES AT RESTAURANTS OPEN MORE THAN ONE YEAR A KEY BAROMETER OF A RETAIL CHAIN'S PERFORMANCE GAINED 82 FOR THE QUARTER ENDED OCT 2 THE BOSTONBASED BAKERY CAFE CHAIN REPORTED NET INCOME OF 18 MILLION OR 16 CENTS A SHARE COMPARED WITH 14 MILLION OR 13 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE INCREASED 18 TO 298 MILLION FROM 25 MILLION IN THE YEAR EARLIER THE EARNINGS ANNOUNCEMENT REPORTED AFTER THE MARKET CLOSED CAME IN AT THE LOW END OF ANALYSTS' EXPECTATIONS IN TRADING ON THE NASDAQ STOCK MARKET SHARES IN THE COMPANY GAINED 175 TO 2150 THE COMPANY SAID REVENUE WAS BOOSTED BY NONRESTAURANT SALES INCLUDING FRANCHISING REVENUE WHICH GAINED 32 TO 23 MILLION FROM 17 MILLION IN THE YEAREARLIER PERIOD 9311030033 931103 PACIFIC TELESIS GAINS APPROVAL FOR SPINOFF PLAN STOCK RISES 9 AS PROPOSAL INVOLVING CELLULAR LINES IS CLEARED BY CALIFORNIA BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL PACIFIC TELESIS GROUP CLEARED A BIG HURDLE YESTERDAY IN ITS PLAN TO RAISE 12 BILLION BY SPINNING OFF ITS CELLULAR OPERATIONS AND SELLING A SMALL STAKE TO THE PUBLIC BUT THE CALIFORNIA PUBLIC UTILITIES COMMISSION IN APPROVING THE PLAN IMPOSED IMPORTANT CONDITIONS THAT MAY HAMPER PACTEL CONSUMER GROUPS MOREOVER VOWED TO CHALLENGE THE STATE APPROVAL WHICH MAY FURTHER COMPLICATE THE PACTEL EFFORT AFTER NEWS BROKE REGARDING THE COMMISSION'S APPROVAL WHICH CAME AFTER 10 MONTHS OF DELIBERATION AND THREE PREVIOUS DELAYS PACTEL SHARES ROSE 4875 OR 9 TO A 52WEEK HIGH OF 59125 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING THE SURGE REFLECTED WALL STREET SPECULATION THAT PACTEL COULD TURN AROUND AND SELL THE CELLULAR BUSINESS TO AMERICAN TELEPHONE & TELEGRAPH CO WHICH IS BELIEVED TO HAVE BEEN INTERESTED IN THE PROPERTY SAID ANALYST MICHAEL BALHOFF OF LEGG MASON WOOD WALKER IN BALTIMORE PACTEL'S CELLULAR UNIT WOULD BE VALUED AT 10 BILLION IF THE PUBLIC OFFERING OF A 12 STAKE FOR 12 BILLION GOES THROUGH NEXT MONTH AS THE COMPANY HOPES BUT THE STATE COMMISSION COULD HINDER ANY SALE OF THE CELLULAR BUSINESS ANYTIME SOON IN GRANTING APPROVAL THE PANEL PROHIBITED PACTEL FROM SELLING ANY PARTY A STAKE OF MORE THAN 224 IN THE NEWLY FORMED CELLULAR ENTITY WHILE PACTEL WOULD BE FREE TO SELL TO WHOMEVER IT PLEASES LATER ON INITIALLY IT CAN'T SELL A MAJOR STAKE TO ANY ONE BUYER THE COMPANY SAID IT WAS REVIEWING THE DECISION IN GRANTING APPROVAL TO SPIN OFF ITS WIRELESS OPERATIONS THE STATE COMMISSION ORDERED PACTEL A REGIONAL BELL COMPANY SERVING CALIFORNIA AND NEVADA TO REFUND 413 MILLION TO CONSUMERS THAT FIGURE WAS AIMED AT COMPENSATING PACTEL CUSTOMERS FOR THEIR CONTRIBUTION TO DEVELOPING THE CELLULAR BUSINESS THE COMMISSION SAID BUT CONSUMER GROUPS HAD CONTENDED PACTEL SHOULD REFUND MORE THAN 1 BILLION AND EVEN THE COMMISSION'S OWN CONSUMER ADVOCACY ARM SAID IT PLANNED TO ASK THE PANEL TO RECONSIDER ITS DECISION AUDRIE KRAUSE EXECUTIVE DIRECTOR OF THE CONSUMER GROUP TOWARD UTILITY RATE NORMALIZATION SAID TURN IS PREPARED TO APPEAL THE DECISION ALL THE WAY TO THE CALIFORNIA SUPREME COURT IF PACTEL HAD HOPED TO ELIMINATE THE CLOUD OF UNCERTAINTY TO GO FORWARD WITH THE SALE OF THE STAKE THAT HASN'T HAPPENED MS KRAUSE MAINTAINED NONETHELESS A PACTEL SPOKESMAN SAID THE COMPANY WAS INITIALLY ENCOURAGED BY THE COMMISSION'S APPROVAL ADDING THAT ANY COURT CHALLENGES AREN'T EXPECTED TO DELAY THE PUBLIC OFFERING WE THINK THE DECISION WILL HOLD UP IN THE COURTS 9311030032 931103 BUSINESS BRIEF CHRYSLER CORP EPA RECALLS SOME CARS MADE BY US UNIT OF MITSUBISHI THE ENVIRONMENTAL PROTECTION AGENCY SAID IT ORDERED THE RECALL OF 36400 MITSUBISHI MOTORS CORP AND CHRYSLER CORP CARS TO CORRECT EXCESSIVE EMISSIONS OF CARBON MONOXIDE THE CARS ARE MANUFACTURED BY DIAMOND STAR MOTORS THE US UNIT OF MITSUBISHI THEY INCLUDE THE 1990 MITSUBISHI ECLIPSE CHRYSLER EAGLE TALON AND PLYMOUTH LASER AND HAVE 20LITER TURBOCHARGED ENGINES ACCORDING TO THE EPA EXCESSIVE EMISSIONS RESULT FROM FAULTY OXYGEN SENSORS THAT CAN'T WITHSTAND HIGH TEMPERATURES ASSOCIATED WITH TURBOCHARGED ENGINES AN EPA OFFICIAL SAID THE AGENCY HADN'T ESTIMATED THE COST OF THE RECALL BUT NOTED THAT OXYGEN SENSORS GENERALLY SELL OVER THE COUNTER FOR ROUGHLY 50 9311030031 931103 BUSINESS BRIEF ROGERS CANTEL MOBILE THIRDPERIOD LOSS WIDENED WORKERS TO BE LAID OFF ROGERS CANTEL MOBILE COMMUNICATIONS INC TO BOOST FINANCIAL RESULTS SAID IT WILL LAY OFF AS MANY AS 400 EMPLOYEES OR 15 OF ITS WORK FORCE AND TOOK A RESTRUCTURING CHARGE WIDENING ITS THIRDQUARTER LOSS THE CHARGE OF 753 MILLION CANADIAN DOLLARS US574 MILLION WIDENED THE LOSS TO C845 MILLION COMPARED WITH A LOSS OF C224 MILLION A YEAR EARLIER REVENUE CLIMBED 18 TO C1592 MILLION WHILE OPERATING INCOME REACHED C154 MILLION COMPARED WITH AN OPERATING LOSS OF C29 MILLION A YEAR EARLIER THE TORONTO CELLULAR COMMUNICATIONS CONCERN SAID IT WILL CLOSE FRANCHISE OR SELL AN UNDETERMINED NUMBER OF ITS 47 SERVICE CENTERS ACROSS CANADA OVER THE NEXT YEAR DAVID GERGACZ PRESIDENT AND CHIEF EXECUTIVE SAID THE RESTRUCTURING WILL ALLOW THE COMPANY TO ACHIEVE ITS PLAN TO REPORT A NET PROFIT IN 1995 OR SOONER ITS SHARES CLOSED AT 3075 DOWN 50 CENTS ON THE NASDAQ STOCK MARKET 9311030030 931103 POLITICS & POLICY WHILE SOME CLINTON CHANGES MAKE BIG WAVES OTHER POLICIES TRICKLE DOWN TO LOWER LEVELS BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A YEAR AGO TODAY PRESIDENT CLINTON WAS ELECTED ON A PROMISE TO BRING CHANGE FROM 12 YEARS OF REPUBLICAN RULE AND FOR ALL THE TALK OF GRIDLOCK AT THE TOP THAT IS MORE OR LESS WHAT HE IS DOING THE BIG AREAS OF CHANGE ARE OBVIOUS FROM AN ACTIVIST HEALTHCARE PROPOSAL TO THE APPOINTMENT OF RUTH BADER GINSBURG TO THE SUPREME COURT TO THE SIGNING OF A FAMILYLEAVE BILL THAT GEORGE BUSH HAD VETOED THE REPUBLICAN MANTRA OF KEEPING GOVERNMENT OFF THE BACKS OF THE PEOPLE HAS BEEN REPLACED BY MR CLINTON'S MUCH MORE ACTIVIST WE CAN HELP MESSAGE BUT CHANGE IS ALSO BEGINNING TO TAKE ROOT IN A HOST OF OTHER AREAS SCHOOL CHOICE IS OUT EFFORTS TO REVIVIFY PUBLIC SCHOOLS ARE IN WOMEN ARE ALLOWED TO FLY MILITARY COMBAT MISSIONS PUBLICLY FUNDED FAMILYPLANNING CLINICS ARE DISCUSSING ABORTION AS AN OPTION NEW MILITARY RECRUITS ARE NO LONGER ASKED ABOUT THEIR SEXUAL ORIENTATION SOME OF THESE CHANGES FLARED INTO THE PUBLIC CONSCIOUSNESS THEN RECEDED OTHERS HAVE BARELY BEEN NOTICED AT ALL EXCEPT PERHAPS BY THE PEOPLE DIRECTLY AFFECTED BY THEM IN MANY CASES IT IS JUST THAT THE PUBLIC DOESN'T READ IT IN HEADLINES BECAUSE IT ISN'T CONTROVERSIAL SAYS JAMES PFIFFNER A POLITICAL SCIENTIST AT GEORGE MASON UNIVERSITY BUT TAKEN TOGETHER THE MYRIAD POLICY CHANGES DO MAKE A DIFFERENCE HE SAYS THERE IS NO CLINTON REVOLUTION AKIN TO THE REAGAN REVOLUTION OF 1981 WHEN SCORES OF STRONGLY IDEOLOGICAL APPOINTEES CHARTED A COURSE FOR THE COUNTRY FAR DIFFERENT FROM THE ONE IT HAD BEEN ON MOREOVER THE SKITTISHNESS OF THE ELECTORATE EVIDENT IN YESTERDAY'S ELECTIONS MAKES IT DIFFICULT FOR DEMOCRATIC INCUMBENTS TO ATTEMPT TO STEER THE COUNTRY IN A FIRM DIRECTION INDEED IN SOME AREAS SUCH AS ENVIRONMENTAL POLICY THE PACE OF CHANGE UNDER MR CLINTON HASN'T BEEN NEARLY AS SWIFT OR PRONOUNCED AS MIGHT HAVE BEEN EXPECTED ONE REASON THE CLINTON CHANGE IS LESS SWEEPING IS THE RIGHTWARD SHIFT OF THE NATIONAL POLITICAL CLIMATE SINCE THE LAST DEMOCRATIC PRESIDENCY BILL CLINTON UNLIKE JIMMY CARTER FACES LITTLE CLAMOR ON HIS POLITICAL LEFT TO MOVE FARTHER AND FASTER THAN HE MIGHT WANT NO LESS THAN MASSACHUSETTS SEN EDWARD M KENNEDY THE LEADER OF THAT EFFORT IN THE CARTER YEARS OBSERVES I REALIZE IT WILL TAKE SOME TIME BEFORE YOU CAN HAVE SOME OF THE BOLDER INITIATIVES THAT I WOULD LIKE TO SEE ANOTHER REASON OBSERVES BROOKINGS INSTITUTION SCHOLAR STEPHEN HESS IS THAT MR CLINTON DIDN'T COME IN WITH A FIXED IDEOLOGY THAT WOULD HAVE USHERED IN OTHERS LIKE HIM MOREOVER EVEN IN AREAS WHERE THE ADMINISTRATION WANTS TO CHANGE COURSE ITS PROGRESS HAS OFTEN BEEN PAINFULLY SLOW HINDERED PARTICULARLY BY LENGTHY DELAYS IN FILLING JOBS THE FIVEMEMBER EQUAL EMPLOYMENT OPPORTUNITY COMMISSION FOR INSTANCE IS FUNCTIONING WITH A 2TO1 REPUBLICAN MAJORITY AND HASN'T YET BEGUN TO FULFILL DEMOCRATIC PROMISES TO GO AFTER CLASSES OF DEFENDANTS INSTEAD OF TAKING UP DISCRIMINATION ISSUES CASE BY CASE BUT ADMINISTRATION OFFICIALS INSIST THAT EVIDENCE OF CHANGE IS ALL AROUND IT HASN'T ALWAYS BEEN PRETTY CONCEDES GEORGE STEPHANOPOULOS THE PRESIDENT'S ADVISER FOR STRATEGY AND POLICY BUT WHAT WE HAVE ACHIEVED HAS BEEN REAL HERE ARE A SAMPLING OF AREAS WHERE THE CLINTON ADMINISTRATION IS CHANGING THE GOVERNMENT'S DIRECTION IN WAYS THAT MAY BE LESS VISIBLE BUT JUST AS IMPORTANT AS SOME OF ITS MORE PUBLICIZED INITIATIVES CIVIL RIGHTS THE MOST OBVIOUS CHANGES HAVE OCCURRED WHERE THE CLINTON ADMINISTRATION HAS SWITCHED OR ADJUSTED POSITIONS BEFORE THE COURTS FOR EXAMPLE BUSH ADMINISTRATION LAWYERS ARGUED THAT THE CIVIL RIGHTS ACT OF 1991 SHOULDN'T BE APPLIED TO JOBBIAS LAWSUITS PENDING WHEN THE LAW WAS ENACTED CLINTON SOLICITOR GENERAL DREW DAYS IN HIS FIRST APPEARANCE BEFORE THE SUPREME COURT ARGUED THAT THE LAW SHOULD BE APPLIED RETROACTIVELY MOREOVER THE BUSH ADMINISTRATION HAD SUBSTANTIALLY SUPPORTED THE LEGAL ARGUMENTS OF A WHITE RURAL COUNTY COMMISSIONER IN A GEORGIA VOTINGRIGHTS CASE BUT THE CLINTON ADMINISTRATION HAS SUPPORTED BLACKS IN THEIR EFFORT TO CHANGE THE STRUCTURE OF THE COUNTY GOVERNMENT TO FIVE COMMISSIONERS FROM ONE SO THAT BLACKS CAN BE REPRESENTED THE CLINTON ADMINISTRATION ALSO HAS CHANGED COURSE ON CIVILRIGHTS ACTIVITIES IN LESS VISIBLE FORUMS AT THE EDUCATION DEPARTMENT FOR EXAMPLE NORMA CANTU THE ASSISTANT SECRETARY FOR CIVIL RIGHTS SAYS SHE HAD A BACKLOG OF HUNDREDS OF COMPLAINTS WHEN SHE TOOK OFFICE LAST MAY SOME UNACTEDON FOR SEVEN YEARS IN HER FIRST 140 DAYS IN OFFICE SHE HAS ALREADY REDUCED THAT BACKLOG WHICH SHE CALLS THE DUST BUNNIES TO UNDER 50 AND SAYS THE COMPLAINTS WILL ALL BE HANDLED BY THE END OF THE YEAR MS CANTU HAS INITIATED 100 INVESTIGATIONS MOSTLY INTO RACE SEX AND AGE CASES HER PREDECESSOR LAUNCHED ONLY 136 IN THREE YEARS GOVERNMENT'S RELATIONSHIP WITH BUSINESS THE REPUBLICANS GENERALLY RESISTED BECOMING TOO DEEPLY INVOLVED IN JOINT GOVERNMENTBUSINESS EFFORTS BOTH BECAUSE OF THEIR FREEMARKET PHILOSOPHY AND BECAUSE THEY WERE FEARFUL OF POLITICAL FALLOUT THE DEMOCRATS HAVE FEWER SUCH RESERVATIONS THERE IS LESS RELUCTANCE TO USE THE PRESIDENT HIMSELF AS A SUPERSALESMAN TO PUSH AMERICAN EXPORTS FOR EXAMPLE MR CLINTON HAS TELEPHONED SAUDI ARABIA'S KING FAHD TO LOBBY HIM ON BEHALF OF MCDONNELL DOUGLAS CORP AND BOEING CO WHICH ARE TRYING TO LAND A 6 BILLION SAUDI CONTRACT SEPARATELY THE ADMINISTRATION HAS THROWN IN ITS LOT WITH THE BIG THREE AUTO MAKERS MOST ESPECIALLY THE EFFORT TO DEVELOP NEXTGENERATION CARS THAT HAVE THREE TIMES THE GAS MILEAGE OF TODAY'S MODELS THE RELATIONSHIP WITH DEFENSE INDUSTRIES IS MORE COMPLEX DEPUTY DEFENSE SECRETARY WILLIAM PERRY ACKNOWLEDGES THAT THE PENTAGON WANTS 18 BILLION FOR A NEW SEAWOLF ATTACK SUBMARINE EVEN THOUGH IT ISN'T NEEDED IN ORDER TO SUBSIDIZE THE SUB INDUSTRY AND KEEP ALIVE THE INDUSTRIAL CAPACITY TO BUILD SUBMARINES BUT MR PERRY INSISTS THE PENTAGON IS JUST AS WILLING TO SEE LOSERS AS WINNERS WE FULLY EXPECT SEVERAL DEFENSE COMPANIES TO GO OUT OF BUSINESS AND WE WILL STAND BY AND WATCH THAT HAPPEN LEGAL SERVICES FOR THE POOR DURING PART OF THE CARTER ADMINISTRATION HILLARY RODHAM CLINTON LED THE LEGAL SERVICES CORP WHICH PROVIDES FEDERAL MONEY TO PAY LAWYERS FOR THE POOR WHEN RONALD REAGAN TOOK OFFICE HE TRIED TO KILL THE AGENCY ARGUING THAT IT WAS BEING USED TO FIGHT FOR LIBERAL CAUSES PROTECTED BY DEMOCRATIC LAWMAKERS THE AGENCY SURVIVED THE REAGAN ATTACK NOW IT'S BLOSSOMING AGAIN WHERE REAGAN AND BUSH APPOINTEES INCLUDED ROBERT VALOIS A NORTH CAROLINA LAWYER WITH TIES TO JESSE HELMS CLARK DURANT A DEEPLY CONSERVATIVE MICHIGAN LAWYER AND PENNY PULLEN A FORMER CONSERVATIVE STATE LEGISLATOR FROM ILLINOIS THE CLINTON APPOINTEES HAVE CONSIDERABLE EXPERIENCE IN THE LEGALSERVICES FIELD AND STRONG LIBERAL CREDENTIALS THEY INCLUDE ERNESTINE WATLINGTON A HARRISBURG PA ACTIVIST WHO FOUNDED AN ADVOCACY GROUP FOR LOWINCOME PEOPLE AND JOHN BROOKS A BOSTON LAWYER WHO COFOUNDED GREATER BOSTON LEGAL SERVICES MOREOVER AFTER YEARS OF FACING THE BUDGET AX CONGRESS AT THE PRESIDENT'S URGING HAS APPROPRIATED 400 MILLION FOR THE AGENCY FOR THE NEXT FISCAL YEAR UP FROM 357 MILLION IN FISCAL 1993 HOUSING HOUSING AND URBAN DEVELOPMENT SECRETARY JACK KEMP WAS ONE OF THE MOST ACTIVE OF BUSH DOMESTICPOLICY PLAYERS HIS SUCCESSOR HENRY CISNEROS IS AN ACTIVIST TOO BUT IN A MUCH DIFFERENT WAY THERE IS A DIFFERENCE IN UNDERLYING PHILOSOPHY AND DIRECTION HE SAYS MR KEMP STRONGLY PUSHED THE IDEA OF SELLING PUBLIC HOUSING UNITS TO THEIR OCCUPANTS LARGELY BECAUSE OF CONGRESSIONAL OPPOSITION THOUGH SUCH SALES WERE LIMITED TO ONLY A FEW HUNDRED TENANTS MR CISNEROS BY CONTRAST URGES HELPING TENANTS MOVE TO BETTER NEIGHBORHOODS INSTEAD OF SELLING THEM UNITS IN BAD ONES HE HAS INCREASED THE BUDGET THREEFOLD TO 156 MILLION FOR A PROGRAM ALLOWING THE POOR TO LIVE IN MARKETRATE HOUSING AS FOR HOME OWNERSHIP HE EMPHASIZES ASSISTING PUBLICHOUSING TENANTS TO PURCHASE HUDFORECLOSED HOMES RATHER THAN THEIR CURRENT UNITS TECHNOLOGY THE NEW ADMINISTRATION WANTS TO FUND RESEARCH PROJECTS THAT LEAD TO COMMERCIAL PROTOTYPES NOT JUST LONGRANGE RESEARCH ONE EXAMPLE OF THE CHANGE IN EMPHASIS IS HIGHDEFINITION TV DURING THE BUSH ADMINISTRATION SOME US COMPANIES DEVELOPED A NEW DIGITAL TECHNOLOGY THAT LEAPFROGGED PAST JAPANESE TECHNOLOGY BUT THE ADMINISTRATION WASN'T WILLING TO GO A STEP FURTHER AND HELP US COMPANIES TRY TO GET INTO HDTV MANUFACTURING IN CONTRAST ONE OF THE EARLIEST CONSORTIA PUT TOGETHER BY THE CLINTON TEAM THE US DISPLAY CONSORTIUM IN AUSTIN TEXAS HAS AS ITS GOAL RESURRECTING THE IDEA OF HIGHTECH TV PRODUCTION THE CONSORTIUM IS TRYING TO FUND EQUIPMENT AND MATERIALS SUPPLIERS WHICH WOULD MAKE THE SOCALLED FLATSCREEN TVS THAT ARE DEEMED ESSENTIAL TO MAKING HIGHDEFINITION TV A HIT THE CLINTON ADMINISTRATION IS ABSOLUTELY WILLING TO ACKNOWLEDGE THERE'S A CLEAR NEED FOR POLICY DIRECTION TO COAX INDUSTRY ALONG SAYS PETER MILLS CHIEF EXECUTIVE OF US DISPLAY 9311030029 931103 MARKETING & MEDIA TIME WARNER UNIT TRIBUNE TEAM UP PLAN FIFTH COMMERCIAL TV NETWORK BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE RACE TO LAUNCH THE NATION'S FIFTH COMMERCIAL BROADCAST TELEVISION NETWORK BEGAN OFFICIALLY YESTERDAY AS WARNER BROS UNVEILED ITS PLANS FOR A NEW PRIMETIME PROGRAM SERVICE IN PARTNERSHIP WITH TRIBUNE CO THE WB NETWORK WHICH HAS A FIVEYEAR ROLLOUT PLAN WILL BEGIN BROADCASTS NEXT FALL SEVERAL MONTHS BEFORE PARTNERS PARAMOUNT COMMUNICATIONS INC AND CHRISCRAFT INDUSTRIES INC SAY THEY EXPECT TO START THEIR JOINTLY OWNED NETWORK THE PARAMOUNT NETWORK TERMS OF THE WARNERTRIBUNE AGREEMENT WERE NOT DISCLOSED BUT WARNER BROS A TIME WARNER INC UNIT WILL BE THE MAJORITY OWNER OF THE NETWORK AND JAMIE KELLNER THE NETWORK'S CHIEF EXECUTIVE WILL HAVE A STAKE SAID TO BE LESS THAN 10 CHICAGOBASED TRIBUNE WILL AFFILIATE ITS SEVEN STATIONS WITH THE NETWORK BUT WON'T HAVE A DIRECT OWNERSHIP STAKE THE KEY CHALLENGE FOR BOTH NETWORKS WILL BE TO LINE UP STATIONS OR CABLE SYSTEMS REACHING 70 TO 80 OF THE 942 MILLION US TV HOUSEHOLDS THE THRESHOLD NEEDED TO LURE NATIONAL ADVERTISERS THE THREE MAJOR BROADCAST NETWORKS EACH REACH 998 OF THE COUNTRY AND NEWS CORP'S FOX NETWORK HAS ABOUT 95 COVERAGE TRIBUNE'S STATIONS WHICH INCLUDE KEY OUTLETS IN NEW YORK AND LOS ANGELES REACH 22 OF THE COUNTRY WARNER BROS SAID IT ALREADY HAS LINED UP AN ADDITIONAL 10 STATION GROUPS INCLUDING GAYLORD BROADCASTING A UNIT OF GAYLORD ENTERTAINMENT CO AND GANNETT BROADCASTING GROUP A UNIT OF GANNETT CO BRINGING ITS TOTAL COVERAGE TO 40 AS EXPECTED WARNER IS ASKING STATIONS TO PAY IT ABOUT 25 OF ANY INCREASE IN PROFITS THE STATIONS GET AS A RESULT OF CARRYING THE NEW NETWORK PROGRAMS WARNER SAYS IT WILL REINVEST THE FEES IN PROGRAMMING PARAMOUNT AND CHRISCRAFT WHICH BOTH OWN STATIONS ARE NOT ASKING FOR ANY AFFILIATE FEES SAYING THEY EXPECT TO MAKE THEIR PROFITS FROM THEIR OWN STATIONS' CARRIAGE OF THE NETWORK PARAMOUNT AND CHRISCRAFT SAID THEY CURRENTLY REACH 27 OF THE COUNTRY THROUGH PARAMOUNT'S FOUR INDEPENDENT STATIONS AND CHRISCRAFT'S SIX INDEPENDENTS ALTHOUGH BOTH NETWORKS ARE PROCEEDING WITH THEIR COMPETING PLANS TO LINE UP STATIONS MOST OBSERVERS AGREE THAT ONLY ONE CAN COME OUT THE WINNER THERE'S NOT ROOM FOR TWO NEW NETWORKS SAID TOM WOLZIEN AN ANALYST AT SANFORD C BERNSTEIN & CO MR KELLNER THE WB NETWORK EXECUTIVE AGREES ALL THE STATIONS KNOW THERE CAN ONLY BE ONE NEW NETWORK HE SAID WE THINK IT COMES DOWN TO WHICH COMPANY THEY BELIEVE WILL SUCCEED WARNER BROS HE ADDED HAS A PLAN AND OUR PLAN IS STRONGER MR KELLNER IS THE FORMER PRESIDENT OF FOX INC WHICH STARTED THE SUCCESSFUL FOX NETWORK KERRY MCCLUGGAGE CHAIRMAN OF THE PARAMOUNT TELEVISION GROUP COUNTERED THAT ASSESSMENT OUR NETWORK IS BASED ON BUILDING STATION VALUE HE SAID WHILE WARNER SPENT A LOT OF TIME FIGURING OUT HOW TO TAKE MONEY OUT OF STATIONS' POCKETS WARNER BROS HAS A MORE CONCRETE ROLLOUT SCHEDULE STARTING WITH TWO HOURS ON EACH OF TWO NIGHTS NEXT FALL BY THE SECOND YEAR THE NETWORK PLANS PROGRAMMING FOR WEEKDAY MORNINGS MIDDAY AFTERNOON LATE NIGHT AND SATURDAY MORNINGS IN ADDITION TO TWO MORE NIGHTS OF PRIMETIME PARAMOUNT HOWEVER HAS ALREADY ANNOUNCED ONE NEW SHOW STAR TREK VOYAGER THE THIRD SERIES IN ITS ENORMOUSLY SUCCESSFUL STAR TREK PROGRAMMING WARNER BROS DIDN'T ANNOUNCE ANY PROGRAMS YESTERDAY BUT SAID IT HAD AVAILABLE THE TALENTS OF SUCH PRODUCERS AS STEVEN SPIELBERG ABOUT 280 INDEPENDENT TV STATIONS AREN'T AFFILIATED WITH A MAJOR BROADCAST NETWORK MANY SMALLER CITIES HAVE ONLY ONE STATION AN INDEPENDENT SUCH STATIONS WILL HAVE TO SIZE UP THE MERITS OF THE WARNER BROS AND PARAMOUNT PLANS BOTH WARNER BROS AND PARAMOUNT SAY THEY HOPE TO USE CABLE DISTRIBUTION TO EXTEND THE REACH OF THEIR NETWORKS IN AREAS WHERE INDEPENDENTS AREN'T AVAILABLE WARNER FOR EXAMPLE IS ATTEMPTING TO RECRUIT AFFILIATES OF EXISTING NETWORKS ABC CBS NBC OR FOX TO HELP LAUNCH SEPARATE CABLE CHANNELS CARRYING THE WB PROGRAMS BUT A SENIOR NBC EXECUTIVE SCOFFED AT THAT IDEA I CAN'T SEE ANY OF OUR AFFILIATES PUTTING ANYONE ELSE IN BUSINESS HE SAID THE SHORTTERM ECONOMIES DON'T JUSTIFY THE LONGTERM EXPOSURE AS FOR THE POTENTIAL OF A NEW FIFTH NETWORK THE NBC EXECUTIVE SAID IT WOULD BE HARD FOR A NEW NETWORK TO BE COMPETITIVE GIVEN THAT IT WILL BE ON WEAKER STATIONS WITH LESS OF A COMMUNITY IDENTITY BUT MR WOLZIEN THE ANALYST THINKS A FIFTH NETWORK WILL ONLY HASTEN THE FRACTIONALIZATION OF THE AUDIENCE THAT THE ESTABLISHED NETWORKS ALREADY ARE FIGHTING 9311030028 931103 BUSINESS BRIEF SHILOH INDUSTRIES INC COMPANY EXPECTS EARNINGS WON'T MEET EXPECTATIONS SHILOH INDUSTRIES INC BLAMING AN INABILITY TO PASS ALONG A STEEL PRICE INCREASE SAID IT EXPECTS TO REPORT FISCAL FOURTHQUARTER EARNINGS BELOW SOME ANALYSTS' ESTIMATES THE MANSFIELD OHIO STEEL PROCESSOR SAID IT EXPECTS TO POST A PROFIT OF 2 MILLION FOR THE QUARTER ENDED OCT 31 UP FROM 17 MILLION A YEAR EARLIER SOME ANALYSTS HAD FORECAST THE COMPANY WOULD EARN AS MUCH AS 25 MILLION SHILOH SEES REVENUE RISING TO 46 MILLION FROM 40 MILLION THE INCREASES IN SALES AND NET INCOME FOR THE FOURTH QUARTER WERE HELD BACK BY OUR INABILITY TO PASS ALONG JULY 1 STEEL MILL PRICE INCREASES TO OUR CUSTOMERS A SITUATION WE SEE CONTINUING INTO 1994 THE COMPANY SAID FOR THE YEAR SHILOH SAID IT EXPECTS TO REPORT EARNINGS OF 9 MILLION ON 180 MILLION IN REVENUE COMPARED WITH EARNINGS OF 7 MILLION ON 142 MILLION IN REVENUES IN FISCAL 1992 SOME ANALYSTS HAD PROJECTED THE COMPANY WOULD EARN 94 MILLION IN LATE NASDAQ STOCK MARKET TRADING SHILOH SHARED DROPPED 2125 TO 1125 9311030027 931103 INSIDE TRACK INSIDERS BUY AT FIRMS SENSITIVE TO MOVES IN INTEREST RATES SELL AT MANUFACTURERS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IF YOU WANT TO RUN WITH THE INSIDERS BUY INTERESTRATESENSITIVE STOCKS AND APPAREL RETAILERS BUT STEER CLEAR OF SUCH SECTORS AS COMPUTERS AEROSPACE AND OILDRILLING ISSUES EXECUTIVES AND DIRECTORS AT UTILITIES REGIONAL BANKS LIFEINSURANCE COMPANIES AND REALESTATE INVESTMENT TRUSTS CONSISTENTLY HAVE BEEN THE BIGGEST ACCUMULATORS OF COMPANY STOCK IN THE PAST FEW MONTHS SAYS BOB GABELE PRESIDENT OF CDA/INVESTNET IN FORT LAUDERDALE FLA THE COMPANY TRACKS INSIDER DATA FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AND IS ALSO UNDER CONTRACT TO PROCESS INSIDER DATA FOR THE SEC ACCORDING TO CDA/INVESTNET'S GAUGE OF INSIDER SENTIMENT THE LEVEL OF INSIDER ACCUMULATION AMONG UTILITY INSIDERS NEARLY DOUBLED IN THE THREEMONTH PERIOD ENDED SEPT 30 FROM LEVELS FOR THE THREEMONTH PERIOD ENDED JULY 31 DATA FOR THE PERIOD ENDED OCT 31 AREN'T YET AVAILABLE THE COMPANY SAYS WE'VE BEEN WATCHING THE UTILITY INSIDERS FOR WELL OVER SIX MONTHS NOW MR GABELE SAYS THE WAY THEY'VE BEEN ACCUMULATING STOCK SUGGESTS THAT THEY DON'T FEAR A SUBSTANTIAL RISE IN RATES TO BE SURE HE SAYS A LOT OF THE INTERESTRATESENSITIVE ISSUES HAVE ALREADY HAD GOOD RUNS AND THEREFORE INVESTORS MUST BE SELECTIVE IN DIPPING INTO THOSE SECTORS BUT HE ADDS THAT THE RELATIVELY BULLISH SENTIMENT AMONG SUCH INSIDERS WHO TEND TO LOOK ABOUT SIX MONTHS AHEAD SUGGESTS THAT THE OVERALL MARKET MAY ENJOY FURTHER LONGTERM APPRECIATION BASED ON CONTINUED LOW INTEREST RATES WE'RE USING THE INTERESTRATESENSITIVE STOCKS AS A CUE TO LET US KNOW WHEN TO BE MORE CONCERNED ABOUT A DRAMATIC RISE IN RATES HE SAYS ADDING THERE'S NOTHING IN THE DATA TO SUGGEST THAT INTEREST RATES ARE GOING TO MOVE UP FORCEFULLY FOR NOW IF THE BUYING BY UTILITY AND BANK EXECUTIVES ISN'T ENOUGH EVIDENCE THAT THE ECONOMY WILL CONTINUE TO GROW SLOWLY WITH LITTLE OR NO SIGNIFICANT INFLATION THE HEAVY SELLING BY INSIDERS IN A NUMBER OF MANUFACTURING SECTORS TENDS TO CONFIRM THAT SCENARIO SELLING HAS OCCURRED IN MIDSIZE SEMICONDUCTORS AS WELL AS IN THE SECTORS OF COMPUTERS COMPUTER PERIPHERALS HOME BUILDING AND OILANDGAS DRILLING MR GABELE NOTES SEMICONDUCTOR COMPANIES HAVE SEEN THEIR NETSELLING RANKING SURGE BY 50 ON CDA/INVESTNET'S SCALE IN THE THREE MONTHS ENDED SEPT 30 STILL THERE ARE HINTS THAT SOME SECTORS COULD ENJOY FASTER GROWTH IN COMING MONTHS MR GABELE NOTES WE ARE SEEING SOME IMPROVING INSIDER SENTIMENT IN SOME OF THE CONSUMER INDUSTRIES SUCH AS APPAREL RETAILERS AND APPAREL MANUFACTURERS SHOES CONSUMERSPECIALTY COMPANIES AS WELL AS IN AIRLINES AND AUTOS INDEED MICHAEL PAINCHAUD OF MARKET PROFILE THEOREMS A SEATTLE INVESTMENT ADVISORY FIRM CONTENDS THAT THERE MAY BE MORE STRENGTH IN THE ECONOMY THAN IS IMMEDIATELY APPARENT AN IMPROVEMENT IN INSIDER BUYING OF AUTO AND TRUCK STOCKS COMBINED WITH STRONGER INSIDER ACCUMULATION IN MINING AND CONSTRUCTION MACHINERY SUGGESTS THAT THE ECONOMY COULD BE SET TO TAKE OFF NOT JUST ON THE CONSUMER SIDE BUT ALSO ON THE BASIS OF STRONGER MANUFACTURING PERFORMANCE HE SAYS IT INCREASES OUR CONFIDENCE THAT BETS SHOULD BE MADE IN THE INDUSTRIALCYCLICAL AREA AT LEAST IN THE NEXT TWO OR THREE MONTHS HE SAYS MOST INSIDERTRADING ANALYSTS AGREE THAT PROPERTY AND CASUALTY INSURANCE IS A SECTOR TO AVOID GIVEN THE RECENT BEHAVIOR OF THE INDUSTRY'S INSIDERS THE SECTOR HAS SEEN ONE OF THE LARGEST DROPS IN BULLISH SENTIMENT AMONG INSIDERS ACCORDING TO CDA/INVESTNET THE SECTOR HAS HAD A NICE RUN OVER THE LAST 1 1/2 YEARS SAYS MR PAINCHAUD MAYBE INSIDERS THINK THEIR SHARES HAVE GOTTEN OVERLY EXPENSIVE THE SAME THINKING HE SAYS MAY APPLY TO STOCK BROKERAGE FIRMS AND MONEYCENTER BANKS OVERALL THE CURRENT LEVEL OF INSIDER SELLING IN THE STOCK MARKET DOESN'T BODE POORLY FOR SHARE PRICES HE SAYS THERE HAS BEEN MORE SELLING THAN BUYING BUT IT HAS BEEN VERY MODERATE THE SELLING LEVEL IF TAKEN ALONE SEEMS SOMEWHAT BULLISH IN THAT THE NORMAL REACTION OF INSIDERS TO HIGHER PRICES IS TO SELL TO LOCK IN PROFITS ON FEARS OF A MAJOR CORRECTION BUT WE DIDN'T GET THAT ACCELERATION OF SALES ACROSS A BROAD SPECTRUM IN THE MONTH OF OCTOBER WHEN THE DOW JONES INDUSTRIAL AVERAGE POWERED ON TO RECORD LEVELS CONSUMER SPEC 9311030026 931103 GOP WINS GOVERNORS' RACES IN VIRGINIA NEW JERSEY UNSEATS MAYOR IN NEW YORK BY GERALD F SEIB AND HEIDI EVANS STAFF REPORTERS OF THE WALL STREET JOURNAL REPUBLICANS CHRISTIE TODD WHITMAN AND GEORGE ALLEN WON ELECTIONS FOR GOVERNOR OF NEW JERSEY AND VIRGINIA SENDING TROUBLING POLITICAL SIGNALS TO THE CLINTON ADMINISTRATION MEANWHILE NEW YORK'S DEMOCRATIC MAYOR WAS FIGHTING AN UPHILL BATTLE TO HANG ON TO HIS JOB IN A RACE WITH SIGNIFICANT IMPLICATIONS FOR THE CLINTON ADMINISTRATION DEMOCRATIC NEW JERSEY GOV JIM FLORIO LOST A TIGHT RACE TO THE GOP CHALLENGER MRS WHITMAN WITH 98 OF THE VOTE COUNTED MRS WHITMAN LED 50 TO 48 AND GOV FLORIO CONCEDED DEFEAT EARLY THIS MORNING THE FLORIO CAMPAIGN WAS PARTICULARLY SIGNIFICANT BECAUSE THE GOVERNOR BACKED BY PRESIDENT CLINTON'S TOP POLITICAL ADVISERS WAS FIGHTING TO SHOW THAT IT'S POSSIBLE TO BACK HIGHER TAXES AND STAY IN OFFICE HE NEARLY PULLED IT OFF BY SHIFTING THE FOCUS OF THE RACE TO CRIME AND MRS WHITMAN'S CREDIBILITY MR ALLEN A FORMER CONGRESSMAN WHO RAN AS A MODERATE BUT ALSO WON HEAVY BACKING AMONG CHRISTIAN FUNDAMENTALIST VOTERS EASILY BEAT FORMER VIRGINIA ATTORNEY GENERAL MARY SUE TERRY WITH NEARLY ALL OF THE VOTE COUNTED MR ALLEN WAS WINNING 58 TO 41 THE WINS BY MR ALLEN AND MRS WHITMAN ARE THE LATEST IN A SERIES OF BIG ELECTIONS WON BY REPUBLICAN CANDIDATES SINCE PRESIDENT CLINTON TOOK OFFICE REPUBLICANS HAVE TAKEN OVER US SENATE SEATS IN TEXAS AND GEORGIA AND THE MAYOR'S OFFICE IN LOS ANGELES IN THE OTHER BIG RACE OF THE DAY THE CONTEST FOR MAYOR OF NEW YORK GOP CHALLENGER RUDOLPH GIULIANI WAS PROJECTED TO HAVE DEFEATED DEMOCRATIC INCUMBENT DAVID DINKINS LIKE MOST CANDIDATES IN 1993 MR ALLEN IN VIRGINIA SCORED BIG POLITICAL POINTS BY STRIKING A TOUGHONCRIME POSITION HE PROPOSED ELIMINATING PAROLE AS A WAY TO KEEP CRIMINALS OFF THE STREETS TO VOTERS CONCERNED ABOUT CRIME THAT SEEMED A MORE SATISFYING PROPOSAL THAN MS TERRY'S OFTREPEATED PLEDGE TO REQUIRE A FIVEDAY WAITING PERIOD FOR PURCHASES OF HANDGUNS MASONDIXON EXIT POLLING INDICATED THAT THOSE WHO CONSIDERED CRIME THE TOP ISSUE VOTED FOR MR ALLEN BY A 2TO1 MARGIN SAID BRAD COKER PRESIDENT OF THE POLLING ORGANIZATION BUT IN A COLORFUL WIDELY WATCHED COMPANION RACE FOR VIRGINIA'S LIEUTENANT GOVERNOR DEMOCRATIC INCUMBENT DON BEYER HELD ON TO HIS SEAT THAT RACE MATCHED MR BEYER AGAINST REPUBLICAN CHALLENGER MICHAEL FARRIS A CHRISTIAN FUNDAMENTALIST LAWYER WHO IS A NATIONAL LEADER IN THE HOMESCHOOLING MOVEMENT BUT EVEN THOUGH MR FARRIS LOST THE TURNOUT OF CHRISTIAN FUNDAMENTALISTS TO SUPPORT HIM HAD A SPILLOVER EFFECT THAT AIDED MR ALLEN IN THE GOVERNOR'S RACE EXIT POLLS INDICATED THAT 34 OF THOSE WHO TURNED OUT WERE WHITE CHRISTIAN FUNDAMENTALISTS WHO WENT 3TO1 FOR MR ALLEN THE OFFYEAR ELECTIONS WERE HELD IN AN ENVIRONMENT OF CONTINUED VOTER ANGER AND CYNICISM NEW YORK CITY VOTERS APPROVED A CONTROVERSIAL REFERENDUM QUESTION THAT WOULD LIMIT ELECTED CITY OFFICIALS TO EIGHT YEARS IN OFFICE AND IN THE VIRGINIA GOVERNOR'S RACE VOTERS SEEMED EAGER TO REJECT THE STATE DEMOCRATIC PARTY ESTABLISHMENT THAT MS TERRY REPRESENTED THE MOOD WAS ALSO REFLECTED IN THE FACT THAT MR FLORIO AND MR DINKINS HAD TO STRUGGLE BACK INTO THEIR RACES AFTER FALLING CLEARLY BEHIND CHALLENGERS IN NEW YORK CITY REGARDLESS OF THE OUTCOME THE VOTING PATTERN SUGGESTED A CITY THAT REMAINS SPLIT ALONG RACIAL LINES EVEN MORE SO THAN WHEN MESSRS DINKINS AND GIULIANI FACED OFF FOUR YEARS AGO THE HISPANIC VOTE WHICH WAS SERIOUSLY COURTED BY MR GIULIANI WAS GOING 2TO1 FOR MR DINKINS AS WAS MORE THAN 90 OF THE BLACK VOTE ACCORDING TO EXIT POLLS MEANWHILE 75 OF THE WHITE VOTE AND TWOTHIRDS OF THE JEWISH VOTE WERE GOING FOR MR GIULIANI MR GIULIANI IS STRIVING TO BECOME A STRIKING SYMBOL OF VOTERS' CRAVING FOR POLITICAL CHANGE HE WOULD BE THE FIRST REPUBLICAN MAYOR OF NEW YORK IN A GENERATION IN NEW JERSEY GOV FLORIO WHO SPARKED VOTER OUTRAGE BY PUSHING THROUGH A 28 BILLION TAX INCREASE IN 1990 HAD PULLED AHEAD IN RECENT POLLS BY TURNING VOTER CYNICISM AGAINST HIS CHALLENGER WHEN MRS WHITMAN PROPOSED A 30 CUT IN INCOME TAX RATES OVER THREE YEARS THE GOVERNOR RIDICULED THE PROPOSAL AS A CRASS POLITICAL PLOY THAT THE STATE COULDN'T AFFORD POLLS OF VOTERS ON ELECTION DAY SUGGESTED THAT MR FLORIO MANAGED TO SOW ENOUGH DOUBT ABOUT THE TAXCUT PLAN TO PARTLY OFFSET UNHAPPINESS OVER HIS OWN TAX INCREASE ACCORDING TO EXIT POLLS A SLIGHT MAJORITY THOUGHT MR FLORIO'S 1990 TAX INCREASE WAS THE WRONG THING TO DO BUT A MAJORITY ALSO THOUGHT MRS WHITMAN'S TAX CUTS WOULDN'T WORK IN GENERAL MR FLORIO PRESENTED HIS TAX CUTS AS THE TOUGH BUT NECESSARY MEDICINE TO CLEAN UP THE STATE'S FISCAL PROBLEMS BUT HE WAS UNDONE BY HIS LOW POPULARITY IN HIS OWN STATE 9311030025 931103 WHAT'S NEWS BUSINESS AND FINANCE NEWHOME SALES SHOT UP 208 IN SEPTEMBER TO THE HIGHEST LEVEL IN SEVEN YEARS ANOTHER INDICATION THAT LOW INTEREST RATES ARE STIMULATING THE ECONOMY SEPARATELY THE GOVERNMENT'S INDEX OF LEADING INDICATORS ROSE 05 IN SEPTEMBER SUGGESTING CONTINUED MODERATE GROWTH INTO 1994 BOND PRICES FELL MORE THAN A POINT ON THE GROWING EVIDENCE OF THE STRENGTHENING ECONOMY BUT LATER REBOUNDED THE TREASURY'S 30YEAR BENCHMARK ENDED DOWN 3/8 POINT ITS YIELD CLIMBED TO 606 THE DOW INDUSTRIALS ROSE 503 TO A RECORD 369764 GOLDMAN SACHS WAS FORCED BY THE CLINTON ADMINISTRATION TO SELL A 20 STAKE IN NATIONAL GYPSUM BECAUSE IT OWNED STAKES IN THE TOP TWO US GYPSUM MAKERS THE ADMINISTRATION'S MOVE AGAINST THE SECURITIES FIRM WAS ONE OF ITS FIRST BIG ANTITRUST ACTIONS CLINTON PLANS TO SWEETEN HIS PITCH FOR THE NORTH AMERICAN FREETRADE PACT BY PROPOSING LEGISLATION TO HELP INDUSTRIES RANGING FROM WASHING MACHINE MANUFACTURERS TO BROOM MAKERS PACIFIC TELESIS RECEIVED APPROVAL FOR ITS PLAN TO RAISE 12 BILLION BY SPINNING OFF ITS CELLULAR OPERATIONS AND SELLING A SMALL STAKE TO THE PUBLIC BUT A UTILITY PANEL SET CONDITIONS THAT COULD HAMPER PACTEL AND CONSUMER GROUPS VOWED A CHALLENGE TO THE PLAN GENERAL MOTORS' ELECTRONIC DATA SYSTEMS SAID IT ISN'T INTERESTED IN BEING ACQUIRED EDS STILL HOPES TO FIND A PARTNER IN THE TELECOMMUNICATIONS FIELD FOR A POSSIBLE ALLIANCE DELOITTE & TOUCHE WAS TOLD TO PAY 77 MILLION IN PUNITIVE DAMAGES BY A JURY FOR NEGLIGENCE IN PREPARING TAX RETURNS FOR A CATTLE PARTNERSHIP THAT CLAIMED DEDUCTIONS ON GRAZING PASTURES IT COULDN'T PROVE THE COWS USED WALMART AGREED TO ACQUIRE 91 OF KMART'S 113 PACE WAREHOUSE CLUBS CEMENTING THE LEAD OF ITS SAM'S CLUB UNIT AMID CONSOLIDATION IN THE SLUMPING MEMBERSHIP WAREHOUSE INDUSTRY KMART SAID IT WILL REALIZE NET PROCEEDS OF 300 MILLION IN THE DEAL BUT EXPECTS A FOURTHQUARTER 450 MILLION CHARGE ING C OLIVETTI'S CHAIRMAN TURNED HIMSELF IN TO ITALIAN AUTHORITIES AMID ALLEGATIONS OF CORRUPTION CARLO DE BENEDETTI'S ARREST PROMPTED CONCERN OVER HIS COMPANY'S FUTURE IBM IS EXPECTED TO ANNOUNCE TODAY A PLAN TO ASSIGN ABOUT 2200 SERVICE TECHNICIANS TO A VENTURE WITH KODAK TO SERVICE PERSONALCOMPUTER INSTALLATIONS PEOPLE CLOSE TO THE PLAN SAID DUPONT MERCK'S DECISION TO HALT INDIVIDUAL DOSE PACKAGING OF SEVERAL KEY DRUGS EFFECTIVELY RAISING PRICES HAS HOSPITALS AND A CONGRESSMAN ANGRY GEORGE SOROS AND OTHER INVESTORS WILL INVEST 40 MILLION IN GEOTEK INDUSTRIES A COMPANY THAT HOPES TO PROVIDE CELLULARLIKE SERVICES USING AN UNUSUAL ISRAELI DEFENSE TECHNOLOGY BONDS LEHMAN BROTHERS TREASURY INDEX 555475 OFF 3185 COMMODITIES OIL 1712 A BARREL OFF 31 CENTS DOW JONES FUTURES INDEX 13166 UP 088 SPOT INDEX 11986 UP 049 DOLLAR 10780 YEN OFF 040 17035 MARKS UP 00097 9311030024 931103 BUSINESS BRIEF HERSHEY FOODS CORP TWO MILLION SHARES BOUGHT FROM THE CONTROLLING TRUST HERSHEY FOODS CORP SAID IT BOUGHT TWO MILLION OF ITS COMMON SHARES FROM ITS CONTROLLING SHAREHOLDER HERSHEY TRUST CO THE HERSHEY PA FOOD MANUFACTURER PAID ABOUT 1031 MILLION IN THE TRANSACTION PART OF A 200 MILLION STOCKREPURCHASE PROGRAM HERSHEY TRUST AFTER THE SALE WILL HOLD 766 OF THE VOTING POWER IN THE CHOCOLATE CONFECTIONERY PASTA AND FOODPRODUCTS COMPANY HERSHEY TRUST HOLDS 993 OF CLASS B SHARES WHICH CARRY 10 VOTES PER SHARE THE TRUST LAST SOLD SHARES IN 1986 INCOME FROM THE TRUST PAYS THE ENTIRE ROOM AND BOARD FOR NEEDY CHILDREN ENROLLED IN THE MILTON HERSHEY SCHOOL A PRIVATE BOARDING SCHOOL IN HERSHEY HERSHEY TRUST SAID IT SOLD THE SHARES TO FURTHER DIVERSIFY ITS INVESTMENTS 9311030023 931103 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 DEAN WITTER DISCOVER & CO 250 MILLION OF NOTES DUE NOV 1 2005 PRICED AT PAR TO YIELD 65 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 87 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 155 BILLION OF BONDS PRICED IN TWO ISSUES THE FIRST IS 800 MILLION OF SERIES SM1998T NONCALLABLE BONDS YIELDING 5086 WITH A MATURITY DATE OF NOV 10 1998 THEY WERE OFFERED AT A PRICE OF 9984375 THE SECOND ISSUE IS 750 MILLION OF SERIES SM2003H BONDS NONCALLABLE FOR TWO YEARS YIELDING 62 WITH A MATURITY OF NOV 12 2003 THEY WERE OFFERED AT PAR PROCEEDS OF THE OFFERING WILL BE USED TO REDEEM THE 873 MILLION OF SERIES SM1993G DEBENTURES DUE NOV 10 AND WILL ALSO BE ADDED TO THE WORKING CAPITAL OF FANNIE MAE FOR GENERAL CORPORATE PURPOSES THE BONDS ARE AVAILABLE IN BOOKENTRY FORM ONLY FROM THE FEDERAL RESERVE BANK INTERNATIONAL PAPER CO 200 MILLION OF NOTES DUE NOV 1 2003 PRICED AS 6125S AT 99519 TO YIELD 619 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 58 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC DM MANAGEMENT CO INITIAL OFFERING 18 MILLION COMMON SHARES PRICED AT 9 APIECE THROUGH MANAGERS WESSELS ARNOLD & HENDERSON AND ADAMS HARKNESS & HILL INC JOHN ALDEN FINANCIAL CORP SIX MILLION COMMON SHARES PRICED AT 2825 APIECE THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC TJ INTERNATIONAL INC 35 MILLION COMMON SHARES PRICED AT 2850 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO LOS ANGELES DEPARTMENT OF WATER & POWER 6274 MILLION SECOND ISSUE OF 1993 ELECTRICPLANT REVENUE REFUNDING BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5423 YIELDS FOR REOFFERED BONDS RANGE FROM 345 IN 1995 TO 558 IN 2031 BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA AUSTRALIAN TREASURY DEPARTMENT SOVEREIGN 200 MILLION AUSTRALIAN DOLLARS OF TREASURY CAPITAL INDEXED BONDS THROUGH SALE BY ITS DEALER PANEL THE INDEXED BONDS WERE ISSUED AT AN ANNUAL FIXED INTEREST RATE OF 4 AND MATURE ON AUG 20 2010 THE BONDS YIELD 338 SETTLEMENT WILL OCCUR BETWEEN THURSDAY AND NOV 10 THE FIRST INTEREST PAYMENT IS DUE NOV 20 AND THE NOMINAL VALUE OF PRINCIPAL FOR THE FIRST INTEREST PAYMENT IS A10164 THEREAFTER INTEREST WILL BE PAID QUARTERLY THE PRINCIPAL VALUE OF CAPITAL INDEXED BONDS APPRECIATES WITH THE RATE OF INFLATION BRITISH LAND CO UK 150 MILLION OF 8875 NONCALLABLE EUROBONDS DUE SEPT 25 2023 AT ISSUE PRICE 100718 VIA SG WARBURG SECURITIES LTD REOFFERED AT 98843 TO YIELD 8989 TO MATURITY A MARGIN OF 180 BASIS POINTS OVER 875 GILT OF 2017 FEES 25 PAYABLE SEMIANNUALLY KIRIN INTERNATIONAL FINANCE NETHERLANDS BV JAPANESE PARENT FIVE BILLION YEN OF REVERSECOUPON FLOATINGRATE EURONOTES DUE NOV 10 1997 AT ISSUE AND REOFFER PRICE 1003 VIA MITSUBISHI FINANCE INTERNATIONAL PLC INITIAL ANNUAL COUPON 3 UNTIL FEB 24 1997 THEREAFTER SEMIANNUAL COUPON OF SIXMONTH YEN LONDON INTERBANK OFFERED RATE PLUS 025 POINT KEEPWELL AGREEMENT WITH KIRIN BREWERY CO FEES 03 NATIONAL POWER CORP PHILIPPINES 200 MILLION OF 7625 EUROBONDS DUE NOV 15 2000 AT ISSUE AND REOFFER PRICE PAR VIA MORGAN STANLEY INTERNATIONAL BONDS YIELD MARGIN OF 225 BASIS POINTS OVER COMPARABLE US TREASURY FEES 1125 PAYABLE SEMIANNUALLY 9311030022 931103 IN CALIFORNIA INSURANCE POLICIES BURN TAXPAYERS BY SHELDON RICHMAN THE NATURAL DISASTER MAKING HEADLINES MAY HAVE CHANGED FROM FLOODS IN THE MIDWEST TO AUTUMN BRUSH FIRES IN SOUTHERN CALIFORNIA BUT ONE THING REMAINS THE SAME THE TAXPAYERS WILL BE FORCED TO BAIL OUT PEOPLE INCLUDING SOME VERY WEALTHY PEOPLE WHO CHOOSE TO LIVE IN RISKY LOCATIONS INSURED LOSSES IN CALIFORNIA ARE EXPECTED TO REACH 250 MILLION FROM FIRES THAT AT LAST COUNT HAD BURNED 152000 ACRES DESTROYED 720 BUILDINGS AND DISPLACED 25000 PEOPLE PRESIDENT CLINTON HAS DECLARED FIVE COUNTIES TO BE FEDERAL DISASTER AREAS MAKING A BUNDLE OF FREE OR LOWCOST GOODIES AVAILABLE TO THE STRICKEN RESIDENTS BUT THAT ASSISTANCE IS JUST A SMALL PART OF THE SUBSIDY TO PEOPLE WHO BUILD HOMES WHERE BRUSH FIRES RAGE YEAR AFTER YEAR THE QUESTION IS WHETHER PEOPLE WILL MAKE RATIONAL DECISIONS ABOUT LIVING IN A LITERAL TINDERBOX IF GOVERNMENT LOWERS THE COST OF THAT CHOICE ANY ECONOMIST WILL TESTIFY THAT THE WAY TO GET MORE OF SOMETHING IS TO SUBSIDIZE IT SUBSIDIES TO PEOPLE WHO LIVE IN HAZARDOUS AREAS GUARANTEE THAT MORE PEOPLE WILL LIVE THERE AND THAT WHEN DISASTER STRIKES THE DAMAGE WILL BE GREATER THAN IT WOULD OTHERWISE HAVE BEEN IS THAT WISE PUBLIC POLICY THE FIRST SUBSIDY TO SOME RESIDENTS OF DISASTERPRONE AREAS IS BELOWMARKET FIRE INSURANCE CALIFORNIA REQUIRES INSURANCE COMPANIES TO PARTICIPATE IN A RISKPOOL ARRANGEMENT THE CALIFORNIA FAIR PLAN ASSOCIATION TO GUARANTEE ACCESSIBILITY TO PEOPLE WHO CANNOT GET REGULAR FIRE INSURANCE IT IS SIMILAR TO ASSIGNEDRISK SYSTEMS FOR HIGHRISK DRIVERS WHO CAN'T AFFORD AUTO INSURANCE IN EFFECT PROPERTY INSURANCE COMPANIES MUST COVER A PERCENTAGE OF UNINSURABLES EQUAL TO THEIR MARKET SHARE ALTHOUGH FAIR PLAN HAS ITS OWN AGENTS AND WRITES ITS OWN POLICIES FAIR PLAN HAS 26500 POLICYHOLDERS IN BRUSH AREAS IN THE CURRENT FIRES IT HAS ALREADY RECEIVED CLAIMS TOTALING 26 MILLION MARJORIE BERTE GOV PETE WILSON'S INSURANCE ADVISER SAYS FAIR PLAN CHARGES BREAKEVEN RATES AND IS INTENDED TO BE SELFSUPPORTING IN BAD YEARS SUCH AS THIS ONE WHEN THE PROGRAM IS NOT SELFSUPPORTING THE SHORTFALL IS MADE UP THROUGH A SPECIAL ASSESSMENT AGAINST THE INSURANCE COMPANIES MS BERTE INSISTS THE INSURANCE IS NOT SUBSIDIZED BUT HOW COULD IT NOT BE AFTER ALL THE FREE MARKET HAS A PERFECTLY SENSIBLE WAY TO GUARANTEE ACCESSIBILITY IF YOU ARE WILLING TO PAY THE MARKET RATE YOU ARE GUARANTEED INSURANCE THERE WOULD BE NO NEED TO LEGALLY REQUIRE A COMPANY TO INSURE SOMEONE WHO WAS WILLING TO PAY THE MARKET RATE BUT NEITHER CALIFORNIA NOR ANY OTHER STATE HAS A FREE INSURANCE MARKET RATES ARE CLOSELY REGULATED FAIR PLAN WAS STARTED IN 1968 TO HELP BUSINESSES RETURN TO RIOTTORN INNER CITIES AFTER THE INSURANCE COMPANIES HAD BEEN SCARED AWAY RESIDENTS OF FIREPRONE BRUSH AREAS WHO COULDN'T GET FIRE INSURANCE AT THE STATEAPPROVED RATES THEN PRESSURED TO HAVE THE PROGRAM INCLUDE THEM THE IMPLICIT RATE SUBSIDY IS THE DIFFERENCE BETWEEN THE PREMIUM IN THE ABSENCE OF REGULATION AND THE FAIR PLAN PREMIUM UNDER THE BREAK EVEN RATES APPLIED ACROSS THE GOVERNMENTCREATED POOL OF INSURED SOME PEOPLE ARE CHARGED HIGHER RATES THAN THEY MIGHT OTHERWISE PAY TO MAKE UP FOR THE LOWER RATES THAT OTHERS IN THE POOL ARE CHARGED THE SUBSIDY MAKES IT POSSIBLE FOR SOME PEOPLE TO OWN HOMES IN A BRUSH FIRE AREA WHO OTHERWISE WOULD HAVE CHOSEN TO LIVE ELSEWHERE THAT SUBSIDY WOULD BE BAD ENOUGH BUT THE FEDERAL GOVERNMENT MAKES THINGS WORSE BY STANDING READY TO PAY THE BILLS FOR DAMAGE NOT COVERED BY INSURANCE DISASTER RELIEF IS AVAILABLE FROM THE FEDERAL EMERGENCY MANAGEMENT AGENCY AND THE SMALL BUSINESS ADMINISTRATION AS SOON AS THE PRESIDENT DECLARES A COUNTY A DISASTER AREA INDIVIDUALS CAN OBTAIN 4 30YEAR LOANS FOR UNINSURED DAMAGE TO THEIR HOMES AND POSSESSIONS MONEY IS ALSO AVAILABLE FOR RENT FOR TEMPORARY HOUSING AND HOME REPAIR IF REBUILDING IS NOT NECESSARY SBA MONEY CAN EVEN BE USED TO PAY THE DEDUCTIBLE ON AN INSURANCE POLICY FEMA HAS MONEY FOR OTHER THINGS AS WELL FOR EXAMPLE LOCAL MENTAL HEALTH AGENCIES CAN BE REIMBURSED FOR THE ADDITIONAL COUNSELING SERVICES THEY MAY PROVIDE IN THE AFTERMATH OF A DISASTER FEMA CAN ALSO PAY UNEMPLOYMENT BENEFITS TO PEOPLE WHO LOSE JOBS BECAUSE OF A DISASTER THE PRICE TAG CAN BE QUITE HIGH CONGRESS PASSED A 57 BILLION DISASTER APPROPRIATION DURING THE MIDWEST FLOODING FEMA OFFICIALS HAVE NOT BEEN ABLE TO ESTIMATE WHAT THEIR TOTAL OUTLAY WILL BE FROM THE BRUSH FIRES THIS COMPLEX WEB OF POOLEDRISK INSURANCE LOANS AND GRANTS AMOUNTS TO A SITUATION IN WHICH THE TAXPAYERS AND CALIFORNIA HOMEOWNERS IN LESS RISKY AREAS CHIP IN TO MAKE IT POSSIBLE FOR OTHER PEOPLE IN SOME CASES MUCH WEALTHIER PEOPLE TO LIVE IN AREAS PERENNIALLY THREATENED BY WILDFIRE AND TO REBUILD IN THE SAME PLACE WHENEVER FIRE DESTROYS THEIR HOMES THAT IS DUBIOUS PUBLIC POLICY A MORE EQUITABLE SYSTEM WOULD BE TO LET PEOPLE FACE THE TRUE COSTS OF THEIR DECISIONS ABOUT WHERE TO LIVE INSURANCE OF COURSE IS A TIMEHONORED METHOD OF POOLING RISK BUT REGULATED AND SUBSIDIZED INSURANCE TAMPERS WITH IMPORTANT SIGNALS REGARDING RELATIVE RISK THAT MARKETSET PREMIUMS PROVIDE IF THOSE SIGNALS ARE DISTORTED MORE PEOPLE WILL TAKE RISKS THAT EXPOSES THE TAXPAYERS TO AN UNNECESSARY FINANCIAL BURDEN AND ALSO PROMPTS TALK ABOUT REGULATING WHERE PEOPLE MAY LIVE PEOPLE RICH OR POOR NEED NOT BE DEFENSELESS IN THE FACE OF NATURAL DISASTERS THE COMPETITIVE MARKET ALLOWS DISCOVERY OF THINGS WE WON'T LEARN OTHERWISE A DEREGULATED INSURANCE INDUSTRY WOULD BE FREE TO SEARCH FOR INNOVATIVE WAYS TO PROTECT PEOPLE AGAINST LOSSES DUE TO DISASTER BUT WE WON'T KNOW WHAT IT WILL DISCOVER UNTIL THE REGULATORS GET OUT OF THE WAY MR RICHMAN IS AN EDITOR AT THE CATO INSTITUTE IN WASHINGTON 9311030021 931103 TREASURY PLANS TO SELL 276 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO RAISE 353 BILLION IN NEW CASH WITH THE SALE MONDAY OF A RECORD 276 BILLION IN SHORTTERM BILLS TO REDEEM 2408 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON FEB 10 1994 AND MAY 12 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794H80 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794K52 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST THE TREASURY ALSO SAID IT WILL AUCTION 10 BILLION IN 36DAY CASH MANAGEMENT BILLS TOMORROW COMPETITIVE TENDERS IN MINIMUM 1 MILLION DENOMINATIONS MUST BE RECEIVED BY 1 PM EST THURSDAY NONCOMPETITIVE TENDERS WON'T BE ACCEPTED 9311030020 931103 WHO'S NEWS AMERICAN EXPRESS CO SUBSIDIARY IS ACQUIRED BY WILLIAM J NUTT BOSTON WILLIAM J NUTT FORMER PRESIDENT OF BOSTON CO ACQUIRED BOSTON INSTITUTIONAL SERVICES INC FROM AMERICAN EXPRESS CO'S LEHMAN BROTHERS INC UNIT TERMS WEREN'T DISCLOSED BOSTON INSTITUTIONAL SERVICES WHICH PROVIDES SECURITIES EXECUTION AND SETTLEMENT SERVICES TO 500 INSTITUTIONAL CLIENTS WAS A NONCORE BUSINESS FOR LEHMAN BROTHERS A LEHMAN SPOKESMAN SAID ITS SALE WAS CONSISTENT WITH OUR STRATEGY OF FOCUSING ON OUR INVESTMENTBANKING BUSINESSES BOSTON INSTITUTIONAL SERVICES WAS ACQUIRED BY BOSTON CO IN 1986 HOWEVER IT WAS NOT PART OF MELLON BANK CORP'S 15 BILLION ACQUISITION IN MAY OF BOSTON CO FROM AMERICAN EXPRESS'S SHEARSON LEHMAN BROTHERS HOLDINGS FOLLOWING THE ACQUISITION BOSTON INSTITUTIONAL SERVICES REMAINED A UNIT OF SHEARSON LEHMAN BROTHERS AND LATER OF LEHMAN BROTHERS FOLLOWING PRIMERICA CORP'S ACQUISITION OF SHEARSON THE 48YEAROLD MR NUTT WHO JOINED BOSTON CO IN 1982 LEFT THE POSTS OF PRESIDENT AND CHIEF OPERATING OFFICER IN MAY AFTER THE MELLON ACQUISITION BOSTON INSTITUTIONAL SERVICES ALSO PROVIDES ECONOMIC ADVISORY SERVICES STATISTICAL ANALYSIS AND OTHER INVESTMENT RESEARCH SERVICES ITS CLIENT BASE INCLUDES INVESTMENT ADVISERS PENSIONPLAN SPONSORS AND MUTUALFUND MANAGERS IN NORTH AMERICA AND EUROPE IT HAS 31 EMPLOYEES IN BOSTON NEW YORK NEWPORT BEACH CALIF AND BALTIMORE MR NUTT SAID HE WILL BE CHAIRMAN AND CHIEF EXECUTIVE OFFICER WITH JOHN W GOMEZ CONTINUING AS PRESIDENT AND CHIEF OPERATING OFFICER AND STANLEY M RINEHART STAYING ON AS EXECUTIVE VICE PRESIDENT AND DIRECTOR OF MARKETING MESSRS GOMEZ AND RINEHART WERE ELECTED TO THE BOARD 9311030019 931103 NATIONWIDE HEALTH BUYS 11 SITES NATIONWIDE HEALTH PROPERTIES INC A NEWPORT BEACH CALIF REALESTATE INVESTMENT TRUST SAID IT ACQUIRED 11 LONGTERM CARE FACILITIES FROM AMERICAN HEALTH CENTERS INC FOR 357 MILLION AMERICAN HEALTH CENTERS A PRIVATE PARSONS TENN NURSING HOME CONCERN LEASED BACK THE FACILITIES AS PART OF THE TRANSACTION 9311030017 931103 AVERAGE YIELDS ON CDS WERE GENERALLY HIGHER IN MOST RECENT WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE GENERALLY SLIGHTLY HIGHER IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS CREPT UP TO 269 FROM 268 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS INCHED UP TO 437 FROM 436 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS ROSE TO 328 FROM 315 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD INCREASED TO 456 FROM 452 THE SURVEY SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE CLIMBED A LITTLE TO 283 FROM 279 ON FIVEYEAR JUMBOS THE AVERAGE ROSE A BIT TO 455 FROM 449 ACCORDING TO BANXQUOTE 9311030016 931103 TECHNOLOGY & HEALTH IBM TO ANNOUNCE PCSERVICE VENTURE SET UP WITH KODAK BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP TODAY IS EXPECTED TO ANNOUNCE A PLAN TO ASSIGN ABOUT 2200 SERVICE TECHNICIANS TO A NEWLY FORMED VENTURE WITH EASTMAN KODAK CO TO SERVICE PERSONALCOMPUTER INSTALLATIONS ACCORDING TO PEOPLE FAMILIAR WITH THE PLAN THE PARTNERSHIP WILL HAVE ABOUT 3000 EMPLOYEES 800 OF THEM FROM KODAK AND 2200 FROM IBM AND WILL BE A MORE EFFICIENT WAY FOR BOTH COMPANIES TO OPERATE WHAT IS AN EXPENSIVE NICHE BUSINESS OBSERVERS SAID THE PARTNERSHIP WILL BE JOINTLY OWNED BY THE TWO COMPANIES AND IS EXPECTED TO BE PROFITABLE IT BUILDS ON AN EXISTING RELATIONSHIP BETWEEN COMPUTERMAKER IBM AND FILM AND COPIER CONCERN KODAK FOR THE SERVICE OF TERMINALS LOCATED IN RETAIL STORES IBM WHICH IS BASED IN ARMONK NY HAS BEEN LOOKING AT MYRIAD WAYS TO TRIM ITS MAIN PAYROLLS AND REBUILD ITS AILING BUSINESS INCLUDING EMPLOYEESEVERANCE PACKAGES THE SPINOFF OF ITS PRINTER OPERATIONS IN A LEVERAGED BUYOUT AND MORE RECENTLY OUTRIGHT LAYOFFS WHILE THE NEW VENTURE WILL PROBABLY BE BILLED AS A BETTER WAY TO PROVIDE CUSTOMER SERVICE IT ALSO POSES YET ANOTHER WAY TO TRIM IBM'S WORK FORCE THE IBM SALES FORCE IN PARTICULAR HAS COME UNDER SCRUTINY FOR ITS HIGH EXPENSE BASE THAT IS IN PART DUE TO THE PROGRAM IBM PURSUED IN THE LATE 1980S MOVING THOUSANDS OF PEOPLE FROM MANUFACTURING JOBS AND RETRAINING THEM TO PLANT THEM IN THE SALES FORCE IN AN ALLOUT BID TO BOOST REVENUES CUTTING BACK ON EXPENSES HAS BEEN PARTICULARLY IMPORTANT IN IBM'S PC BUSINESS WHERE MARGINS ARE RAZORTHIN THE IBMKODAK VENTURE MAY BE A TACIT ADMISSION BY IBM WHICH ONCE WAS WORLDRENOWNED FOR CUSTOMER SERVICE THAT IT SIMPLY CAN'T AFFORD TO PROVIDE SOUPTONUTS MARKETING AND SUPPORT FOR EVERY PRODUCT LINE IT SELLS A SMALL NICHE LIKE THIS CAN ONLY BE PROFITABLE IF YOU PUT IT OFF BY ITSELF SAID SAM ALBERT A CONSULTANT AND FORMER IBMER THE NEW UNIT TO BE KNOWN BY THE LESSTHANCATCHY NAME TECHNOLOGY SERVICE SOLUTIONS WILL ALSO PROVIDE SERVICE FOR NONIBM PRODUCTS BROADENING THE OPERATION'S REVENUE BASE HE SAID IBM AND KODAK JOINED UP LAST MAY TO BEGIN OFFERING SERVICE FOR COMPUTER TERMINALS IN RETAIL STORES A SIZABLE IBM BUSINESS KODAK IN ADDITION MAINTAINS A SALES AND SERVICE FORCE FOR ITS LINE OF COPIERS ALTHOUGH IT ISN'T CLEAR WHETHER THAT FORCE WILL BE INVOLVED IN THE NEW VENTURE KODAK IS BASED IN ROCHESTER NY WHEN IBM REORGANIZED ITS LARGEPRINTER BUSINESS INTO A UNIT KNOWN AS PENNANT SYSTEMS IT BEGAN PROVIDING SERVICE TO NONIBM MACHINES THAT SUBSIDIARY HOWEVER REMAINS WHOLLY OWNED BY THE COMPANY THE NEW KODAK ALLIANCE COMES AT A TIME WHEN IBM'S NEW BRASS IS REEVALUATING MANY OF THE SEVERAL HUNDRED RELATIONSHIPS IT HAS WITH OTHER COMPANIES SOME ANALYSTS HAVE LOOKED TO THE COMPANY TO CUT BACK ON SUCH VENTURES BUT A NUMBER OF IBMWATCHERS BELIEVE IBM WILL TURN TO MORE PARTNERSHIPS LIKE THE KODAK APPROACH IN THE FUTURE AS A WAY TO CUT COSTS BY SHARING EXPENSES AND TO FOCUS MORE ON THE BIGGER BUSINESSES IT RETAINS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE IBM'S SHARES CLOSED AT 50875 UP 3125 OR 65 POSITIVE REMARKS BY A DONALDSON LUFKIN & JENRETTE SECURITIES CORP ANALYST WERE SAID TO HAVE LIFTED IBM'S SHARES ALSO ON THE BIG BOARD KODAK'S SHARES CLOSED AT 61875 UP 125 CENTS 9311030014 931103 WHO'S NEWS BELL INDUSTRIES INC BELL INDUSTRIES INC LOS ANGELES ANTHONY L CRAIG STANLEY S FINE AND CHARLES S TROY WERE ELECTED DIRECTORS OF THE MAKER OF PRODUCTS FOR THE ELECTRONICS COMPUTER GRAPHICS AND OTHER INDUSTRIAL MARKETS MR CRAIG 48 YEARS OLD IS SENIOR VICE PRESIDENT OF ORACLE SYSTEMS CORP MR FINE 65 IS SENIOR VICE PRESIDENT OF UNITED GUARDIAN INC MR TROY 50 IS PRESIDENT OF E&S RING MANAGEMENT CORP THEY SUCCEED HOWARD FRANKLIN 73 NATHAN LANDGARTEN 75 AND ELLIS RING 80 WHO RETIRED 9311030013 931103 POSTAL SERVICE TO RAISE MAILING RATES FOR NONPROFIT GROUPS AS SUBSIDY ENDS BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US POSTAL SERVICE SAID IT WILL RAISE MAILING RATES FOR NONPROFIT ORGANIZATIONS TO MAKE UP FOR A DISCONTINUED CONGRESSIONAL POSTAGE SUBSIDY THE FIRST STEP OF A SIXSTEP INCREASE BEGINS NOV 21 THE POSTAL SERVICE'S BOARD OF GOVERNORS ANNOUNCED YESTERDAY AT ITS MONTHLY BUSINESS MEETING ON AVERAGE NONPROFIT ORGANIZATIONS AND SOME SMALLER LOCAL NEWSPAPERS WILL PAY AN ADDITIONAL 2 EACH YEAR FOR SECONDCLASS POSTAGE THIRDCLASS NONPROFIT POSTAGE WILL INCREASE BETWEEN 1 AND 3 EACH YEAR AND THE FOURTHCLASS LIBRARY RATE WILL RISE 15 EVERY OTHER YEAR THERE WILL BE NO IMMEDIATE INCREASE IN FIRSTCLASS POSTAGE OR ANY OTHER COMMERCIAL MAILING RATE THE NONPROFIT RATE INCREASE COMES LESS THAN A WEEK AFTER CONGRESS VOTED TO DISCONTINUE ITS REVENUE FORGONE APPROPRIATIONS MONEY THAT HAD PAID THE OVERHEAD COSTS ASSOCIATED WITH NONPROFIT GROUPS' MAILINGS SINCE 1971 CONGRESS WILL CONTINUE TO SUBSIDIZE POSTAGE ON MAILINGS TO THE BLIND AND ABSENTEE BALLOTS TO AMERICANS OVERSEAS UNDER AN AGREEMENT WITH CONGRESS THE POSTAL SERVICE WILL RECOUP HALF OF THE MISSING APPROPRIATIONS FROM NONPROFIT GROUPS THROUGH THE SIXYEAR RATE INCREASE COMMERCIAL MAILERS ARE SUPPOSED TO ABSORB THE REST ALTHOUGH NO RATE INCREASE FOR THIS GROUP IS PLANNED UNTIL AT LEAST 1995 ARTHUR SACKLER MANAGING DIRECTOR OF THE MAILERS COUNCIL A WASHINGTONBASED COALITION OF CORPORATIONS AND ASSOCIATIONS THAT USE THE POSTAL SERVICE HEAVILY SAID THE SHARED PAIN COMPROMISE IS A PRETTY GOOD STEP IN THE RIGHT DIRECTION THE POSTAL SERVICE ALSO SAID YESTERDAY THAT NEW NONPROFIT RATE ELIGIBILITY RULES WILL GO INTO EFFECT NOV 21 FOR SECONDCLASS MAIL AND ON JAN 1 FOR THIRDCLASS MAIL THE RULES REQUIRE ALL SECONDCLASS MAILINGS WITH MORE THAN 10 ADVERTISING TO PAY REGULAR POSTAGE RATES ON THE ADVERTISING THEY ALSO LIMIT WHAT CAN BE MAILED AT THIRDCLASS RATES SEPARATELY THE POSTAL SERVICE BOARD APPROVED BORROWING AS MUCH AS 600 MILLION FOR CAPITAL PURPOSES DURING FISCAL 1994 THE POSTAL SERVICE PLANS TO REDUCE ITS DEBT BY 458 MILLION THIS YEAR THE MAIN GOAL IS TO CONTROL INTEREST EXPENSE BY MINIMIZING THE AMOUNT OF CASH AND DEBT WE KEEP ON HAND SAID MICHAEL RILEY THE POSTAL SERVICE'S CHIEF FINANCIAL OFFICER TO ACHIEVE THIS PRIMARY GOAL WE NEED TO INCREASE THE FLEXIBILITY OF OUR DEBT PORTFOLIO THIS INVOLVES THE USE OF FLOATING RATE DEBT CALL OPTIONS COMMERCIAL PAPER AND LINES OF CREDIT 9311030012 931103 AUTOS FORD PLANS TO TAKE ANOTHER SHOT AT THE BOOMING MINIVAN MARKET BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL MINIVAN CUSTOMERS ARE ABOUT TO GET A TREAT A WAR BETWEEN FORD MOTOR CO AND MARKET LEADER CHRYSLER CORP FORD IS STARTING TO GUN THE ENGINES FOR ITS LAUNCH EARLY NEXT YEAR OF THE WINDSTAR A FRONTWHEELDRIVE MINIVAN THAT IS MORE CARLIKE IN APPEARANCE AND PERFORMANCE THAN THE COMPANY'S CLUNKY OLD REARDRIVE AEROSTAR THE WINDSTAR IS PART OF A 1 BILLION FORD ASSAULT ON CHRYSLER'S PRACTICAL DODGE CARAVAN AND PLYMOUTH VOYAGER MINIVANS WHICH DOMINATE THE MARKET FORD HOPES TO SELL AS MANY AS 300000 OF THE NEW WINDSTARS A YEAR TAKING AS MANY AS 100000 ADDITIONAL SALES AWAY FROM CHRYSLER AUTO ANALYSTS SAY CHRYSLER VOWS TO FIGHT BACK TENACIOUSLY AND SOME ANALYSTS SAY THAT MEANS A PRICE WAR AFTER ALL THE CHRYSLER MINIVANS ACCOUNT FOR A BIG PART OF THE COMPANY'S PROFITS THREE YEARS AGO WHEN GENERAL MOTORS CORP LAUNCHED ITS PLASTICBODIED APV MINIVANS CHRYSLER GREETED THEM WITH A 1000 PRICE CUT ON ITS MINIVANS WE BLEW THEM OUT OF THE WATER SAYS DICK A WINTER A CHRYSLER GENERAL MANAGER BUT THIS TIME MIGHT NOT BE SO EASY FOR CHRYSLER THIS IS THE FIRST SERIOUS COMPETITOR TO THE CHRYSLER MINIVANS SAYS JOHN CASESA WERTHEIM SCHRODER & CO'S AUTO ANALYST IT'S FORD'S CHANCE TO TAKE A PIECE OF CHRYSLER'S ACTION AND IT'S GREAT FOR CONSUMERS THEY HAVE MORE PRODUCTS TO CHOOSE FROM THE WINDSTAR IS STILL OFFICIALLY UNDER WRAPS AND FORD EXECUTIVES ARE TRYING TO BUILD SUSPENSE AROUND THE NEW VEHICLE ALTHOUGH A FEW TEST VEHICLES ARE STARTING TO SHOW UP ON THE ROADS AROUND DEARBORN MICH WHERE FORD IS BASED DETAILS ABOUT THE WINDSTAR ARE SKETCHY BUT AUTO ANALYSTS FAMILIAR WITH THE VEHICLE SAY THE WINDSTAR HAS SOLID FUNCTIONAL FEATURES AND A STYLISH LOOK THE WINDSTAR ISN'T BUILT ON A TRUCK CHASSIS LIKE THE AEROSTAR BUT WAS DERIVED FROM FORD'S HOTSELLING TAURUS SEDAN THUS IT HAS A RIDE AND FEEL SIMILAR TO A PASSENGER CAR ANALYSTS SAY THE WINDSTAR NEEDS TO BE A SUCCESS THE HIGHWAY IS LITTERED WITH THE WRECKAGE OF AUTO MAKERS WHO THOUGHT IT WOULD BE EASY TO BEAT CHRYSLER'S DECADEOLD BOXONWHEELS SUCCESS GM MISFIRED BADLY WITH THE UNGAINLY LONGNOSEDLOOKING APVS FORD'S AEROSTAR WHICH IS BEING PHASED OUT WAS A CLUMSY TRUCKLIKE VEHICLE THAT NEVER MATCHED THE CHRYSLER MINIVANS' APPEAL AND THE HANDFUL OF JAPANESE MINIVANS ARE EXPENSIVE NICHE PRODUCTS THANKS TO A SURGING YEN AND DETROIT'S AGGRESSIVE EFFORTS TO FORCE UP JAPANESE MINIVAN PRICES BY LODGING UNFAIR PRICING PROTESTS UNDER FEDERAL TRADE LAWS FORD WON'T DISCUSS PRICES YET THE WINDSTAR WON'T EVEN ARRIVE IN SHOWROOMS UNTIL EARLY 1994 BUT SOME FORD SOURCES ACKNOWLEDGE THAT THE WINDSTAR WILL HAVE TO BE PRICED ABOUT EVEN WITH THE GRAND CARAVAN AND GRAND VOYAGER WHICH START AT ABOUT 18000 FORD ALSO WILL CONTINUE SELLING A SHORTER MINIVAN THE MERCURY VILLAGER BUT THAT'S AN UPSCALE NICHE PRODUCT THAT RANGES IN PRICE FROM 18000 TO 23000 FORD PRODUCES A VERSION OF THE SAME VEHICLE FOR NISSAN MOTOR CO WHICH MARKETS IT AS THE QUEST MARKET SHARE COULD RISE WITH THE WINDSTAR AND THE VILLAGER ESTIMATES CHRISTOPHER W CEDERGREN AN INDUSTRY CONSULTANT WITH AUTOPACIFIC INC FORD COULD CAPTURE AS MUCH AS 30 OF THE MINIVAN MARKET UP FROM ABOUT 24 THIS YEAR AND 186 IN 1992 MOST EXPERTS EXPECT CHRYSLER TO CEDE MARKET SHARE AND PROFITS IN THE COMING FIGHT CHRYSLER HELD 48 OF THE MINIVAN MARKET IN 1992 BUT THAT COULD DROP TO 467 THIS YEAR ESTIMATES MR CEDERGREN CHRYSLER CREATED THE MINIVAN MARKET IN 1983 AND ITS PRODUCTS HAVE BEEN POPULAR EVER SINCE THE MINIVAN HAS ALL BUT REPLACED THE TRADITIONAL STATION WAGON AS THE FAMILY CAR MINIVAN SALES ARE EXPECTED TO EXCEED ONE MILLION THIS YEAR AND THEY ARE EXPECTED TO KEEP GROWING THE GOAL IN MINIVAN DESIGN HAS BEEN TO ACHIEVE THE LOOK AND FEEL OF A STATION WAGON BUT WITH MORE ROOM AND FUNCTIONALITY WOMEN ARE MORE LIKELY TO BE THE PRINCIPAL DRIVERS OF MINIVANS AND THEY DON'T WANT A VEHICLE THAT HANDLES LIKE A BIG TRUCK MINIVAN BUYERS ALSO WANT THE SAME SAFETY FEATURES AS PASSENGER CARS SUCH AS AIRBAGS AND THEY WANT THE MINIVAN TO HAVE VERSATILE SEATING AND STORAGE AND BE EASY TO CLIMB IN AND OUT OF THE WINDSTAR IS DESIGNED TO COMPETE WITH THE GRAND CARAVAN AND ITS COUSIN THE PLYMOUTH GRAND VOYAGER THE MORE EXPENSIVE LONGER VERSIONS OF THE CHRYSLER MINIVANS FORD INSIDERS SAY THE WINDSTAR IS ABOUT A FOOT LONGER THAN THE GRAND CARAVAN AND ABOUT THREE INCHES WIDER INDUSTRY EXPERTS SAY THE LONGER MINIVANS HAVE MORE CARGO SPACE IN THE REAR AND PASSENGER KNEE SPACE BETWEEN THE THIRD AND MIDDLE SEATS THAN THE SHORTER VERSIONS FORD HAS DONE ITS HOMEWORK CONCEDES MR WINTER THE WINDSTAR IS A CURRENT CHRYSLER MINIVAN BUT THEY ARE FOCUSED AT THE HIGH END OF THE MARKET WE HAVE TOTAL MARKET COVERAGE IN THE COMING PRICE FIGHT THE BIG LOSER IS LIKELY TO BE GM THE NO 1 AUTO MAKER IS PAYING A STIFF PRICE FOR IGNORING CONSUMERS IN PRELAUNCH CLINICS WHO SAID THE ANTEATERSNOUTED APVS WEREN'T WHAT MOST MINIVAN BUYERS WANTED GM CAPTURED JUST 25 OF THE MINIVAN MARKET LAST YEAR AND ITS SHARE MAY DROP TO 22 THIS YEAR GM IS TRYING TO MAKE THE BEST OF THE APV MESS FOR THE 1994 MODEL YEAR GM TRIMMED THE APV'S NOSE BY SEVERAL INCHES FRESHENED THE INTERIOR AND ADDED AN AUTOMATIC POWERED SLIDING DOOR BUT UNLIKE THE WINDSTAR AND CHRYSLER'S MINIVANS THE LUMINA APV AND ITS PONTIAC AND OLDSMOBILE SISTERS WON'T HAVE DRIVER AND PASSENGERSIDE AIRBAGS AS STANDARD EQUIPMENT ONLY A DRIVERSIDE AIRBAG GM'S MINIVANS AREN'T EXPECTED TO GET AN OVERHAUL UNTIL LATE 1996 9311030011 931103 LEISURE & ARTS ARCHITECTURE SAILING ALONG ON THE CUTTING EDGE BY EVE M KAHN SAN FRANCISCO AVANTGARDE ARTISTS ARE RARELY IMMORTALIZED IN CITYSCAPES WHILE THEY ARE STILL AVANTGARDE PLANNERS IN SAN FRANCISCO WERE UNDERSTANDABLY TIMID ABOUT ATTEMPTING THIS FEAT AT A LONGVACANT DOWNTOWN SITE EUPHEMISTICALLY CALLED YERBA BUENA GARDENS IN FACT SAN FRANCISCO PLANNERS SPENT 40 YEARS COMMISSIONING PLANS FOR JUST ABOUT EVERY ALTERNATIVE MALLS APPAREL MARTS AIRPORTS STADIA A SKYSCRAPER CROWNED BY A WIND HARP NOTHING SURVIVED BUREAUCRATIC INERTIA PUBLIC RESISTANCE AND RECESSIONS EXCEPT ONE SUBTERRANEAN CONVENTION CENTER AND ONE MARRIOTT THAT LOCALS CALL THE JUKEBOX HOTEL AND LAST MONTH SAN FRANCISCO LET THE AVANTGARDE TAKE OVER THE MOSCONE CONVENTION CENTER'S ROOF THE CENTER FOR THE ARTS JUST OPENED THERE A SMALL MUSEUM AND A SMALLER THEATER WHICH WILL NEVER CONTAIN A PERMANENT COLLECTION NOR RESIDENT COMPANY IN A 45ACRE PARK OF ROLLING LAWN AND MULTICULTURAL PUBLIC ART THE CENTER'S REALIZATION IS NEAR MIRACULOUS OLYMPIA & YORK WAS SUPPOSED TO PICK UP ITS 82 MILLION TAB BUT WENT BANKRUPT INSTEAD AND THE CITY KEPT THE PROJECT ALIVE TO LURE OTHER DEVELOPERS TO THIS 87ACRE URBANRENEWAL ZONE SOUTH OF MARKET STREET FEW CITIES HAVE EVER THUS COOPTED THE AVANTGARDE IMITATED THEIR HABIT OF PIONEERING ROUGH NEIGHBORHOODS USED THEM TO ATTRACT COMMERCE AND NO CITY IN RECENT MEMORY HAS DEVOTED SO MUCH WORLDCLASS ARCHITECTURE EVEN TO THE MOST MAINSTREAM ART FORMS THE THEATER AND MUSEUM HUDDLE TOGETHER AT A SHORT END OF THE RECTANGULAR PARK ACROSS THE STREET FROM MARIO BOTTA'S INTENTIONALLY VULGAR MUSEUM OF MODERN ART SCHEDULED TO OPEN IN 1995 A SLASHEDOFF STRIPEDGLASS CYLINDER FRAMED BY BRICK CUBES WITH HORIZONTAL BANDS OF JAGGEDLY SET BRICKS BOTH THEATER AND MUSEUM DO NOT TRY TO COMPETE WITH BOTTA'S SIDEWALKABUTTING OPUS THEY ARE HALF ITS 145FOOT HEIGHT WITH A QUARTER OF ITS 225000 SQUARE FEET AND CLAD IN GRAY INDUSTRIAL MATERIALS TRIBUTES TO THE LIGHT MANUFACTURING THAT RULED THE SITE FROM THE 1906 FIRE UNTIL URBAN RENEWAL A PLAZA OF CONCRETE STEPS BY OMI/LANG ASSOCIATES SEPARATES BOTH BUILDINGS FROM THE STREET IT HAS BEEN CRITICIZED AS A HOLE IN URBAN FABRIC BUT TO ME IT SEEMS MORE LIKE A DECOMPRESSION ZONE GIVING THE ARCHITECTURE SOME OF THE MYSTERY OF HARDTOREACH WORLD'S FAIR RELICS FUMIHIKO MAKI DESIGNED THE MUSEUM WITH THE LOCAL FIRM ROBINSON MILLS + WILLIAMS IT IS HIS FIRST MAJOR US COMMISSION WINNER OF THIS YEAR'S PRITZKER ARCHITECTURE PRIZE HIS PROFESSION'S NOBEL HE SPECIALIZES IN SLIGHTLY PERTURBED MODERNIST FORMS HIS MASTERPIECE TO DATE A VAST SHALLOWDOMED GYMNASIUM IN TOKYO WITH A HORIZONTAL SLASH OF WINDOWS ACROSS THE VERTICALLY RIBBED METAL ROOF LIKE A FROG'S MOUTH OR A UFO'S ENTRANCE MAKI HAS COMPARED THE YERBA BUENA MUSEUM A CORRUGATEDALUMINUM SHOEBOX TO A SHIP FLOATING ON THE MOSCONE CENTER NAUTICAL MOTIFS ARE RAMPANT BUT ABSTRACT THREE ROWS OF CLAWSHAPED SKYLIGHTS EVOKE EXHAUST PIPES ON A FREIGHTER DECK PROWLIKE TRIANGULAR SHELVES JUT OUT FROM FACADES A RAISED ALLGLASS BAY WINDOW RESEMBLES AN OBSERVATION DECK GALLERIES ARE UNCONFINING REACHING UP TO 25 FEET WITH HIGHTECH WALL OUTLETS ALLOWING FOR ANY MEDIUM OF PERSONAL EXPRESSION IN THE LOBBY A STAIR WITH SHIPS' RAILINGS DRIFTS IN IRREGULARLY SPACED LANDINGS ACROSS A MOSTLY GLASS 120FOOTLONG WALL MAKI REACHES THE ELUSIVE MODERNIST GOAL OF MAKING COARSE ORDINARY MATERIALS SEEM LIGHTWEIGHT AND NOBLE THE THEATER DESIGNED BY JAMES STEWART POLSHEK WITH ASSOCIATE TODD SCHLIEMANN ATTEMPTS TO BRIDGE THE GAP BETWEEN MAKI AND BOTTA AND ENDS UP SEEMING THE SLIGHTEST BIT STRAINED A SERIES OF CUBES FROM 22 TO 90FEET TALL IT RUNS PERPENDICULAR TO THE MUSEUM AND IS CLAD WITH TILE BRICK ALUMINUM AND ENAMEL IN WHITE BLACK AND GRAY EACH MATERIAL INDICATING A DIFFERENT CONTENT ALUMINUM FOR THE PROSCENIUM WHITE BRICK FOR BACKSTAGE THE SOUND AND LIGHT EQUIPMENT RANKS AS SOME OF CALIFORNIA'S MOST TECHNOLOGICALLY SOPHISTICATED BUT IT WILL PLAY TO STEEP TIERS HOLDING A MERE 755 SEATS TRAPEZOIDAL SHEETS OF PERFORATED STEEL HANG ON BLACK AUDITORIUM WALLS THE EFFECT IS ALMOST OVERWROUGHT A PARODY OF AN AVANTGARDE PERFORMER'S DREAM OF A CUSHY YET INTIMATE AND RAW HOUSE THE PARK FOR CONTRAST HIDES ITS UNDERPINNINGS ALL TOO WELL THE CONVENTION CENTER IS NOT AN EASY BUILDING SURFACE IT COMES UP FOR AIR IN ENTRANCE AND EXIT HUMPS AT EITHER LONG EDGE OF THE SITE REQUIRES LIGHT AND CAN'T TOLERATE MUCH PRESSURE THE LANDSCAPING BY MGA PARTNERS WITH ROMALDO GIURGOLA IS A RATHER FRIVOLOUS MASK A TWORESTAURANT ESPLANADE RUNS ATOP THE ENTRANCE HUMP EXOTICFLORA BEDS SURROUND CONVENTIONCENTER LOBBY SKYLIGHTS WISTERIALACED REDWOOD TRELLISES UNDULATE OVER EXIT HUMPS IN BETWEEN GRASS GROWS ON HILLS YOU WOULD NEVER KNOW WERE CARVED FROM LIGHTWEIGHT POLYSTYRENE THERE IS SOME DRAMA ON SITE WATER POURING OVER A SHELTERED USHAPED GRANITE WALKWAY ETCHED WITH MARTIN LUTHER KING QUOTES BUT NOT ENOUGH TO MATCH THE POLITICAL FINANCIAL AND ENGINEERING FORCES THAT BROUGHT ABOUT THIS OPEN SPACE PROBABLY IT'S FOR THE BEST THOUGH THAT THE CENTER DID NOT REALIZE ALL ITS POTENTIAL IF IT HAD WOULD THE AVANTGARDE HAVE STILL FELT THERE WAS ANYTHING LEFT TO FIGHT FOR 9311030010 931103 WHO'S NEWS WISER OIL CO WISER OIL CO DALLAS LAWRENCE J FINN FORMER PRESIDENT OF CWF ENERGY INC WAS NAMED VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER OF THIS ENERGY CONCERN MR FINN 49 YEARS OLD FILLS A NEWLY CREATED POSITION 9311030009 931103 TECHNOLOGY & HEALTH DUPONT MERCK VENTURE'S PRICE INCREASE AND DRUG PACKAGING MOVE ANGER BUYERS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL HOSPITALSUPPLY BUYERS AND A CONGRESSMAN REACTED ANGRILY TO DUPONT MERCK PHARMACEUTICAL CO'S DECISION LAST WEEK TO ELIMINATE A SPECIALLY PACKAGED FORM OF SEVERAL KEY DRUGS A MOVE ONE BUYER SAID WOULD RAISE HIS ORGANIZATION'S COSTS BY 2400 THE TIMING OF DUPONT MERCK'S MOVE AMID THE INTENSE DEBATE IN WASHINGTON OVER DRUG PRICING PUZZLED MANY THE MOVE HAS MADE THE COMPANY A LIGHTNING ROD FOR CRITICISM IN RECENT DAYS DUPONT MERCK IS A JOINT VENTURE BETWEEN DUPONT CO OF WILMINGTON DEL AND MERCK & CO OF WHITEHOUSE STATION NJ LATE LAST WEEK DUPONT MERCK NOTIFIED CUSTOMERS THAT IT IS DISCONTINUING INDIVIDUALLY WRAPPED AND LABELED DOSES OF PRODUCTS SUCH AS CLOTPREVENTING AGENT COUMADIN AND PAINKILLERS PERCOCET AND PERCODAN HOSPITALS USE SUCH UNIT DOSE PACKAGES BECAUSE THEY PREVENT MIXUPS A SPOKESMAN FOR THE COMPANY SAID IT WAS SEEKING TO CUT COSTS AND BECAUSE IT HAS PLEDGED IT WOULDN'T RAISE PRICES THIS YEAR IT WAS FORCED TO DROP THE LOW PROFIT MARGIN LOW VOLUME PRODUCTS BUT IN DOING SO HOSPITALS WILL BE FORCED TO BUY THE MUCH MORE EXPENSIVE BOTTLED PILLS THAT ARE SOLD TO COMMUNITY PHARMACIES THE PRICE OF COUMADIN WILL RISE TO 50 FOR 100 PILLS FROM 2 FOR 100 A 2400 INCREASE SAID PAT MORAN VICE PRESIDENT AND GENERAL MANAGER OF THE PHARMACY BUSINESS UNIT OF VOLUNTARY HOSPITALS OF AMERICA A HOSPITAL ALLIANCE OF MORE THAN 900 NONPROFIT HOSPITALS MR MORAN SAID HE HAS RECEIVED OVER 200 ANGRY CALLS FROM PHARMACISTS IN HIS NETWORK OVER THE PAST THREE DAYS ABOUT THE CHANGE HE WAS PARTICULARLY INCENSED THAT DUPONT MERCK SIMPLY FAXED HIM A NOTICE OF THE CHANGE FRIDAY RATHER THAN CONTACT THE ORGANIZATION TO TRY TO WORK OUT A MUTUALLY AGREEABLE ARRANGEMENT AS OTHER COMPANIES USUALLY DO HE SAID DUPONT MERCK'S SPOKESMAN SAID WE HAVE TO HAVE THE FREEDOM TO MAKE DECISIONS WITH RESPECT TO LOW VOLUME HIGH COST AND LOW MARGIN PRODUCTS MR MORAN SAID VHA HAD SOUGHT TO BUY THE BOTTLED FORMS OF THE DRUGS AT A LOWER PRICE AND CONTRACT OUT THE REPACKAGING BUT DUPONT MERCK DENIED THE REQUEST BUYERS RECALLED THAT DUPONT MERCK HAD DRAMATICALLY RAISED PRICES OF THE BULK DRUGS IN BOTTLES IN 1991 THE BOTTLED FORMS OF THE DRUGS HAD BEEN SIMILARLY PRICED WITH THE WRAPPED UNITDOSED FORMS AT UNDER 5 HOSPITAL BUYERS SAID BUT THE COMPANY RAISED THOSE PRICES TO BETWEEN 40 AND 50 A DUPONT MERCK SPOKESMAN SAID THE COMPANY IN 1991 WANTED TO START ESTABLISHING A ONEPRICE POLICY FOR BOTTLES BECAUSE CUSTOMERS WERE PAYING DIFFERENT PRICES AND CHARGED EVERYONE THE SAME HIGHER PRICE FOR THE BOTTLED DRUGS THE UNITDOSE PRICES REMAINED AT THEIR LOW LEVEL BECAUSE WE WERE TRYING TO BE HELPFUL TO CUSTOMERS HE SAID REP PETE STARK D CALIF EXPRESSED OUTRAGE AT DUPONT MERCK'S ACTION IT COULD BE NOTHING ELSE BUT A SURREPTITIOUS WAY OF RAISING PRICES HE SAID ADDING THAT HE PLANS TO USE THE MOVE AS AN EXAMPLE OF WHAT DRUG COMPANIES DO WHEN LEFT TO THEIR OWN DEVICES AND TO ARGUE AGAINST VOLUNTARY PRICE CONTROLS AS CHAIRMAN OF THE HOUSE WAYS AND MEANS SUBCOMMITTEE ON HEALTH REP STARK WILL BE INFLUENTIAL IN THE DEBATE ON HEALTHCARE REFORM HE IS ADVOCATING A NATIONAL PRESCRIPTION DRUG PRICE REVIEW BOARD TO REGULATE PRICES AN AIDE TO SEN DAVID PRYOR D ARK A FREQUENT CRITIC OF THE DRUG INDUSTRY SAID DUPONT MERCK HAD NOTIFIED THE SENATOR A COUPLE OF WEEKS AGO OF THE PRICE CHANGE THE AIDE SAID HE UNDERSTOOD WHERE THEY WERE COMING FROM AND WOULD MONITOR THE SITUATION HOWEVER WE RAISED CONCERNS ABOUT THE TIMING OF THE MOVE 9311030008 931103 HEARD ON THE STREET BEARS SAY NEXTEL COMMUNICATIONS MAY BE HOT BUT THEY ARE BETTING ITS STOCK PRICE WILL FALL BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL WHEW INVESTORS ARE STILL CATCHING THEIR BREATH AFTER THE SPATE OF DEALS IN THE WIRELESS COMMUNICATIONS MARKET OVER THE PAST TWO WEEKS AT FIRST BLUSH THE FLURRY OF ACTIVITY SUGGESTS THAT CELLULAR TELEPHONE COMPANIES MAY SOON FACE STIFF COMPETITION FROM THE LIKES OF NEXTEL COMMUNICATIONS ONE OF THE LARGEST COMPANIES THAT IS DEVELOPING AN ALTERNATIVE NATIONWIDE WIRELESS NETWORK BUT INVESTORS SHOULD PAUSE BEFORE FLIPPING OPEN THEIR CELLULAR PHONES AND DIALING A BROKER NEXTEL'S STOCK HAS TRIPLED SINCE THE BEGINNING OF THE YEAR TO 54 AT MONDAY'S CLOSE YESTERDAY IT FELL 1 1/2 TO 52 1/2 THE PRECIPITOUS RISE HAS BROUGHT OUT THE BEARS WHO ARE NOW BETTING THAT NEXTEL'S STOCK PRICE WILL SOON TUMBLE IN THE PAST MONTH THE AMOUNT OF STOCK SOLD SHORT OR BORROWED AND SOLD IN A BET THAT THE PRICE WILL DECLINE NEARLY DOUBLED TO 34 MILLION SHARES THAT MADE NEXTEL ONE OF THE COMPANIES WITH THE LARGEST INCREASES IN SHORT POSITIONS IN RECENT WEEKS NEXTEL'S AVERAGE DAILY VOLUME IS ABOUT 12 MILLION SHARES BEARS SAY NEXTEL'S STOCK HAS GOTTEN AHEAD OF ITSELF FOR A COMPANY WITHOUT EARNINGS AND THE PROMISE OF A NATIONWIDE NETWORK THAT IT CAN'T DELIVER ON FOR YEARS A STOCK MARKET VALUE OF MORE THAN 7 BILLION ASSUMING ALL OPTIONS ARE EXERCISED AND OUTSTANDING TRANSACTIONS CLOSED IS EXCESSIVE THE SHORTS ARGUE NEXTEL SAYS THAT SKEPTICS ARE ALWAYS POINTING TO A NEW HURDLE AND POINTS OUT THAT IT KEEPS RIGHT ON BOUNDING OVER THEM BUT IT IS EASY TO SEE THAT NEXTEL HAS ITS WORK CUT OUT FORMERLY CALLED FLEET CALL NEXTEL HAS LONG BEEN IN THE BUSINESS OF PROVIDING RADIO DISPATCH SERVICES FOR TAXICABS TRUCKS AND DELIVERYMEN NOW HOWEVER IT IS TRYING TO CONVERT ITS DIGITAL NETWORK FOR SPECIALIZED MOBILE RADIO SERVICES INTO A SERVICE THAT WILL COMPETE WITH CELLULAR NETWORKS ITS STRATEGY PITS IT AGAINST CELLULAR GIANTS SUCH AS MCCAW CELLULAR AND LIN BROADCASTING NOT TO MENTION THE SOCALLED WIRELINE PHONE COMPANY CELLULAR PROVIDERS NEXTEL'S HANDSETS ARE HEAVY CLUMSY AND EXPENSIVE SAYS ROGER MCNAMEE GENERAL PARTNER WITH INTEGRAL CAPITAL PARTNERS WHICH INVESTS IN TECHNOLOGY COMPANIES WHY WOULD ANYONE WANT ONE OF THESE SAYS MR MCNAMEE WHO SAYS HIS FIRM SOLD ITS NEXTEL HOLDINGS A LONG TIME AGO NEXTEL'S CHAIRMAN MORGAN O'BRIEN INSISTS THAT THE COMPANY'S HANDSETS WILL BE PRICED COMPETITIVELY FOR CELLULAR CUSTOMERS AS WELL AS DISPATCH USERS RONALD BENNETT A CELLULAR CONSULTANT IN CUPERTINO CALIF SAYS HE WAS ALLOWED TO TEST NEXTEL'S SYSTEM SEVERAL WEEKS AGO IN LOS ANGELES WHERE THE COMPANY IS RUSHING TO OFFER COMMERCIAL SERVICE BY THE END OF THE YEAR YOU GET CUT OFF AND FADE OUT HE SAYS EVEN WITHIN THE COMPANY'S SERVICE AREA OF COURSE CELLULAR CUSTOMERS CAN FACE THE SAME PROBLEM IN LOS ANGELES BECAUSE OF CAPACITY CONSTRAINTS BUT ONE OF NEXTEL'S SELLING POINTS TO INVESTORS HAS BEEN THAT USERS WOULDN'T FACE THE SAME PROBLEMS AS CELLULAR CUSTOMERS MR O'BRIEN SAYS NEXTEL DOESN'T FACE SIGNIFICANT TECHNICAL PROBLEMS RIGHT NOW MR BENNETT MIGHT HAVE TRIED THE SYSTEM WHEN CERTAIN AREAS OF SERVICE WERE TURNED OFF HE SAYS FURTHER THE SYSTEM IS IN A TEST MODE WE'VE BEEN VERY HAPPY WITH THE RESULTS ONE OTHER HURDLE FOR NEXTEL PACIFIC TELESIS AND LA CELLULAR THE TWO CELLULAR COMPANIES IN LOS ANGELES HAVE SIGNED CONTRACTS WITH CELLULAR DEALERS THAT DISCOURAGE THEM FROM SELLING NEXTEL'S EQUIPMENT AND SERVICES THAT MEANS THAT NEXTEL MUST USE ITS OWN SALESMEN FOR NOW AND HOPE THAT DEMAND WILL EVENTUALLY CAUSE SOME OF THE CELLULAR DEALERS TO BOLT IN THE MEANTIME SOME INVESTORS SAY NEXTEL'S MARKETING COSTS MAY BE HIGHER THAN THOSE OF CELLULAR COMPANIES EVEN NEXTEL'S MOST ARDENT SUPPORTERS CONCEDE IT WILL BE YEARS BEFORE THE COMPANY DELIVERS A DIME IN EARNINGS TO ITS SHAREHOLDERS LINDA RUNYON A TELECOMMUNICATIONS ANALYST AT MERRILL LYNCH ESTIMATES THE COMPANY WON'T TURN A PROFIT UNTIL 1998 AND SHE ADDS NEXTEL'S RECENT ACQUISITION OF THE RADIO DISPATCH UNITS OF TWO COMPANIES COULD PUSH THAT TIME FRAME BACK EVEN FURTHER MEANWHILE CHAIRMAN O'BRIEN SAYS A SEAMLESS NATIONWIDE NETWORK WON'T BE AVAILABLE TO NEXTEL'S CUSTOMERS UNTIL NOVEMBER 1996 THOUGH THE RECENT CONSOLIDATION COULD MOVE THAT SCHEDULE UP HE ADDS I'M A LOT MORE AGGRESSIVE THAN A FEW MONTHS AGO HE SAYS NEXTEL IS RACING THE CLOCK TO BUILD ITS NETWORK BEFORE THE CELLULAR COMPANIES ADD CAPACITY TO THEIR NETWORKS BY MOVING TO DIGITAL TECHNOLOGY IF NEXTEL WINS THAT RACE IT STILL IS RUSHING TO COMPLETE ITS NETWORK BEFORE ANOTHER COMPETING NETWORK CALLED PCS IS COMPLETED AROUND 1997 THE PCS NETWORK WHICH STANDS FOR PERSONAL COMMUNICATIONS SERVICES IS THE EXPECTED RESULT OF AN APPROACHING GOVERNMENT AUCTION OF PART OF THE RADIO SPECTRUM WHAT WE'RE RACING AGAINST IS THE OPPORTUNITY TO BE THE PREFERRED WIRELESS DEVICE SAYS MR O'BRIEN WE THINK WE CAN GET THERE FIRST HE SAYS FROM THE SHORTS' POINT OF VIEW HOWEVER FIVE YEARS IS A LONG TIME FOR THE STOCK TO STAY AT ITS CURRENT LOFTY LEVEL 9311030007 931103 BUSINESS BRIEF ZITEL CORP LOSS GREW IN FISCAL QUARTER ON A 68 DECLINE IN REVENUE ZITEL CORP REPORTED A WIDENED LOSS OF 27 MILLION FOR ITS FISCAL FOURTHQUARTER CITING A SHARP DECLINE IN SALES THE FREMONT CALIF MAKER OF DATASTORAGE AND COMMUNICATIONS PRODUCTS ALSO POSTED A LOSS FOR THE YEAR ENDED SEPT 30 ZITEL SAID THE QUARTERLY PERSHARE LOSS OF 43 CENTS COMPARES WITH A YEAREARLIER LOSS OF 163000 OR TWO CENTS A SHARE REVENUE FELL 68 TO 36 MILLION FROM 114 MILLION ZITEL OFFICIALS SAID SALES FELL IN PART DUE TO COMPETITION AND A WEAK EUROPEAN MARKET IN HEAVY TRADING YESTERDAY ON THE NASDAQ STOCK MARKET ZITEL SHARES CLOSED AT 4 DOWN 25 CENTS FOR THE YEAR ZITEL POSTED A LOSS OF 83 MILLION OR 134 A SHARE ON REVENUE OF 218 MILLION A YEAR EARLIER NET INCOME WAS 783000 OR 12 CENTS A SHARE ON REVENUE OF 478 MILLION 9311030006 931103 FOREIGN EXCHANGE DOLLAR ADVANCES STILL FURTHER ON MARK AFTER BUNDESBANK SIGNALS IT'S UNFAZED BY BENJAMIN DOLVEN SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE MARK FELL AGAINST THE DOLLAR TUESDAY WITH THE US CURRENCY BREAKING THROUGH THE KEY 17000MARK LEVEL AFTER PLAYERS WERE CONVINCED THAT THE GERMAN CENTRAL BANK WOULDN'T TRY TO SLOW THE MARK'S DECLINE THE MARK WAS BATTERED EARLY IN THE EUROPEAN TRADING DAY BY SIGNS OF SLUGGISHNESS IN THE GERMAN ECONOMY AND HINTS OF AN EASIER MONETARY STANCE BY THE BUNDESBANK FOR THE DAY THE GERMAN CURRENCY SKIDDED AGAINST THE YEN AND DROPPED BROADLY AGAINST EUROPEAN CURRENCIES THE DOLLAR PIERCED THE 17000MARK LEVEL ONLY AFTER HANS TIETMEYER PRESIDENT OF THE BUNDESBANK SAID THE GERMAN CENTRAL BANK WASN'T CONCERNED WITH THE U S CURRENCY'S RECENT GAINS AGAINST THE MARK AND DIDN'T HAVE A FIXED INTERVENTION POINT AT WHICH IT WOULD INTERVENE IN CURRENCY MARKETS TO SLOW THE US CURRENCY'S RISE MEANWHILE THE DOLLAR WAS STRENGTHENED BY ADDITIONAL POSITIVE US ECONOMIC DATA ALONG WITH ITS ADVANCE AGAINST THE MARK THE US CURRENCY GAINED STRONGLY AGAINST THE POUND THOUGH IT DROPPED A BIT AGAINST THE YEN IN TECHNICAL TRADING LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17035 MARKS UP FROM 16938 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10780 YEN DOWN FROM 10820 YEN STERLING WAS TRADING AT 14728 OFF FROM 14825 FINANCIAL MARKETS WERE CLOSED IN TOKYO WEDNESDAY IN OBSERVANCE OF A NATIONAL HOLIDAY DEALERS SAID MR TIETMEYER'S COMMENTS WERE THE MAJOR FACTOR IN LIFTING THE LID ON THE DOLLAR IN RECENT DAYS WIDESPREAD RUMORS THAT THE BUNDESBANK WAS SELLING DOLLARS FOR MARKS TO REPLENISH ITS MARK RESERVES LED TO STIFF RESISTANCE FOR THE US UNIT AGAINST ITS GERMAN COUNTERPART BOB NEAR VICE PRESIDENT ON THE CORPORATE DESK AT BANK OF NEW YORK SAID RUMORS OF THOSE SALES PLUS FEARS THAT THE BUNDESBANK MIGHT INTERVENE DIRECTLY TO SUPPORT ITS CURRENCY HAVE BEEN MAJOR FACTORS HOLDING BACK THE DOLLAR NOW YOU DON'T HAVE THE WORRY THAT THEY'RE SITTING ON ONE LEVEL HE SAID EARLIER IN THE DAY THE MARK HAD BEEN BATTERED BY THE BUNDESBANK'S DECISION TO ALLOCATE ITS SECURITIESREPURCHASE AGREEMENTS WITH A VARIABLE RATE AT ITS MONEYMARKET OPERATION WEDNESDAY DEALERS SAID THAT GIVEN CURRENT MONEYMARKET CONDITIONS THE DECISION COULD BE A SIGNAL OF AN EASIER MONETARY STANCE BY THE GERMAN CENTRAL BANK WHAT PEOPLE WILL LOOK AT IS HOW THE DAYTODAY MONEY MARKET HAS BEHAVED IN THE PAST TWO OR THREE DAYS SAID CHRISTOPHER S BOURDIN CORPORATE FOREIGNEXCHANGE TRADER WITH CREDIT SUISSE IN NEW YORK PEOPLE BELIEVE THE VARIABLERATE REPO WILL GENERATE SOMEWHAT OF AN EASIER STANCE ALSO WEIGHING ON THE MARK WAS THE REPORT THAT WESTERN GERMAN INDUSTRIAL OUTPUT FELL 2 IN SEPTEMBER FROMD 22 INCREASE IN AUGUST WITH THE AUGUST REVISION WESTERN GERMAN OUTPUT HAS HARDLY CHANGED DURING THE PAST TWO MONTHS LEADING TO THE IMPRESSION THAT THE GERMAN ECONOMY IS JUST SORT OF BUMPING ALONG THE BOTTOM BANK OF NEW YORK'S MR NEAR SAID MEANWHILE THE DOLLAR WAS BUOYED BY FRESH BULLISH REPORTS ABOUT THE US ECONOMY DURING THE NORTH AMERICAN MORNING THE COMMERCE DEPARTMENT REPORTED THAT ITS INDEX OF LEADING INDICATORS ROSE BY 05 IN SEPTEMBER COMPARED WITH A REVISED 09 INCREASE IN AUGUST MARKET EXPECTATIONS HAD BEEN FOR A 04 GAIN THE AGENCY ALSO ANNOUNCED THAT US NEWHOME SALES ROSE BY 208 IN SEPTEMBER FOLLOWING A REVISED 22 FALL IN AUGUST THE RISE WAS THE LARGEST SINCE SEPTEMBER 1986 AND WAS MUCH LARGER THAN MARKET EXPECTATIONS WHICH HAD BEEN FOR A 4 INCREASE DEALERS SAID THE HOME SALES FIGURE CONTRIBUTED PARTICULARLY STRONGLY TO THE IMPRESSION THAT THE US RECOVERY IS IN FULL SWING 9311030005 931103 TECHNOLOGY & HEALTH IBM TO START SHIPPING SPEECHRECOGNITION PC SOFTWARE PACKAGE SOMERS NY INTERNATIONAL BUSINESS MACHINES CORP SAID IT WILL BEGIN SHIPPING THE IBM PERSONAL DICTATION SYSTEM BY YEAR END A SPEECHRECOGNITION SOFTWARE PACKAGE FOR DESKTOP COMPUTERS THAT WILL BE PRICED UNDER 1000 ANALYSTS BELIEVE THAT VOICE RECOGNITION WILL BE SLOW TO CATCH ON IN THE MASS MARKET MUCH LIKE THE HIGHLY TOUTED COMPUTERS THAT RECOGNIZE HANDWRITING FOR NOW IBM IS AIMING ITS SYSTEM AT THE MEDICAL AND LEGAL COMMUNITIES WHICH HAVE SPECIFIC DICTATING NEEDS THE PACKAGE HAS A 32000WORD VOCABULARY MUCH OF IT ORIENTED TO MEDICAL AND LEGAL LANGUAGE THE SYSTEM CAN TAKE DICTATION AT 70 WORDS A MINUTE WHICH IS NORMAL SPEECH WITH DISCRETE PAUSES JULIE HORKAN RESEARCH ASSOCIATE AT FORRESTER RESEARCH INC CAMBRIDGE MASS SAYS CUSTOMERS ARE PLEASED BUT IT WILL TAKE A LOT TO GO MAINSTREAM WE CAN'T HAVE PEOPLE SITTING IN THEIR OFFICE CUBICLES RIGHT NOW TALKING INTO THEIR COMPUTERS THE IBM SYSTEM WHICH TOOK 21 YEARS TO DEVELOP HAS TWO PIECES A SOFTWARE PACKAGE AND TWO ADAPTOR CARDS THAT ADD SOME JUICE TO A COMPUTER MICROPROCESSOR THE TECHNOLOGY WHICH ORIGINALLY REQUIRED MAINFRAME PROCESSING POWER WAS FIRST OFFERED IN 1992 ON A RISC SYSTEM/6000 PLATFORM THE PC VERSION RUNS ON INTEL CORP 486 AND PENTIUM CHIPS IT'S CONSIDERED 97 ACCURATE MEANING IT MAKES THREE MISTAKES FOR EVERY 100 WORDS SEPARATELY IBM HALTED SHIPMENTS OF ITS POPULAR THINKPAD 500 SUBNOTEBOOK MODEL AFTER CUSTOMERS COMPLAINED THAT THE COMPUTER'S BATTERY WOULDN'T CHARGE OR DELIVER ENOUGH POWER THE DELAY WAS FIRST REPORTED IN COMPUTER RESELLER AN IBM SPOKESMAN SAID IT HOPES TO FIGURE OUT THE PROBLEM IN A COUPLE OF WEEKS AND WILL THEN TELL CUSTOMERS WHEN SHIPMENTS WILL RESUME IBM WOULDN'T SAY HOW MANY COMPLAINTS HAVE BEEN RECEIVED OR HOW MANY UNIT SHIPMENTS WOULD BE DELAYED 9311030003 931103 LETTERS TO THE EDITOR WHY I STAYED WHERE I AM YOUR OCT 7 ARTICLE SOME FORMER FOES OF NAFTA JOIN ADMINISTRATION FIND DISCOMFORT IN CLASH OF PAST PRESENT VIEWS GAVE AN INACCURATE VIEW OF MY WORK ON THE NORTH AMERICAN FREE TRADE AGREEMENT AS I TOLD YOUR REPORTER I DO WORK IN SUPPORT OF NAFTA THE REASON I DID NOT TRANSFER TO THE WHITE HOUSE IS BECAUSE I ALSO WORK ON MANY OTHER ADMINISTRATION PRIORITIES AT THE ENVIRONMENTAL PROTECTION AGENCY EPA HAS AN AMBITIOUS LEGISLATIVE AGENDA FOR THE FALL INCLUDING CHANGING THE SUPERFUND LAW TO STREAMLINE HAZARDOUS WASTE CLEANUPS AND MAKE THEM MORE EFFECTIVE STRENGTHENING FOOD SAFETY LEGISLATION TO ENSURE THAT THE FOOD ON AMERICANS' DINNER PLATES IS ABSOLUTELY SAFE RENEWING THE CLEAN WATER ACT TO CLEAN UP OUR RIVERS LAKES AND STREAMS AND TOUGHENING THE SAFE DRINKING WATER ACT TO BETTER PROTECT PUBLIC HEALTH AND GIVE COMMUNITIES THE FLEXIBILITY TO MORE EASILY MANAGE THE PROGRAM BY REMAINING AT EPA I AM ABLE TO WORK FOR NAFTA AND THESE OTHER ADMINISTRATION PRIORITIES 9311030002 931103 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ADVANTA CORP A SHELF OFFERING OF UP TO 1 BILLION OF DEBT SECURITIES DOVATRON INTERNATIONAL INC AN OFFERING OF TWO MILLION COMMON SHARES VIA SALOMON BROTHERS INC DEAN WITTER REYNOLDS INC AND NEEDHAM & CO INLAND STEEL INDUSTRIES INC AN OFFERING OF FOUR MILLION COMMON SHARES VIA GOLDMAN SACHS & CO 9311030001 931103 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 1/8 HIGH 2 7/8 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 42 DAYS 308 43 TO 79 DAYS 330 80 TO 179 DAYS 333 180 TO 249 DAYS 335 250 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 316 60 DAYS 337 90 DAYS CERTIFICATES OF DEPOSIT 255 ONE MONTH 269 TWO MONTHS 273 THREE MONTHS 280 SIX MONTHS 297 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 340 THREE MONTHS 345 SIX MONTHS BANKERS ACCEPTANCES 307 30 DAYS 335 60 DAYS 330 90 DAYS 330 120 DAYS 330 150 DAYS 332 180 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 11/16 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 648 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 11993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 311 13 WEEKS 325 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 695 60 DAYS 704 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 693 60 DAYS 703 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 270 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9311030167 931018 LEISURE & ARTS THEATER A MISSTEP FOR STEPPENWOLF BY JOEL HENNING CHICAGO HERE ARE TWO TERRIFIC HOOKS FOR A HIT MUSICAL A TRENDY SEARCH FOR BIOLOGICAL PARENTS AND A NOSTALGIC REVIVAL OF THE POLKA WHAT COULD BE A BETTER SEASON OPENER FOR THE STEPPENWOLF THEATRE COMPANY WELCOME TO EVELYN & THE POLKA KING RUNNING THROUGH OCT 31 EVELYN A PRETTY ADOPTED GIRL OF 18 OR SO ABANDONS HER RICH TEXAS FAMILY TO FIND HER NATURAL PARENTS SHE DISCOVERS HER FATHER IN A SEEDY STUDIO FLAT IN CHICAGO NOW LITTLE MORE THAN A DERELICT HENRY CZERNIAK WAS UNTIL THE DEMON RUM DID HIM IN THE POLKA KING HENRY SIRED EVELYN WHILE IN HIS PRIME BUT NOW HE'S FUZZY ABOUT EXACTLY WHERE AND WITH WHOM YES THE POTENTATES OF POLKA ALSO HAVE THEIR GROUPIES EVELYN INSPIRES HIS COMEBACK THEY REASSEMBLE HIS POLKA BAND THE VIBRATONES AND BARNSTORM THE MIDWEST DELIGHTING THE MULTITUDES WITH THE MUSIC OF LIFE AS CZERNIAK CALLS THE THREESTEP POLKA TUNES WHILE THEY SEARCH FOR EVELYN'S MOTHER ALAS EVELYN FAILS TO DELIVER ANYTHING EITHER POIGNANT OR FUNNY ABOUT THIS SEARCH FOR ROOTS MANY OF US FOUND OUR TOES TAPPING BUT WE NEVER WOULD HAVE COME JUST TO HEAR SOME POLKA TUNES EVEN WELLPLAYED AS THESE ARE BY THE VIBRATONES IT'S NOTEWORTHY THAT NO VETERAN MEMBERS OF STEPPENWOLF'S ACTING TROUPE ARE INVOLVED IN EVELYN IF YOU WANT TO SEE THESE FAMOUS ALUMS BETTER GO TO YOUR LOCAL MOVIE THEATER THERE FOR EXAMPLE JOAN ALLEN IS SEARCHING FOR BOBBY FISCHER AND JOHN MALKOVICH HAS CLINT EASTWOOD IN THE LINE OF FIRE OR VISIT LONDON WHERE KEVIN ANDERSON CAN BE SEEN IN THE ANDREW LLOYD WEBBER MUSICAL SUNSET BOULEVARD EVEN COUCH POTATOES NEEDN'T BE DEPRIVED OF STEPPENWOLF PLAYERS LAURIE METCALF IS BEGINNING HER SIXTH SEASON ON ROSEANNE AND JOHN MAHONEY HIS FIRST ON FRASIER THE SUCCESSOR TO CHEERS PERHAPS THESE VETERAN PERFORMERS WERE EVERY LAST ONE TOO BUSY OR MAYBE THEY SENSED THAT THIS WAS TO BE AN IGNOBLE DISASTER AND BEGGED OFF THE ACTORS IMPORTED FOR THE PURPOSE OF BRINGING THIS THING OFF ARE NOT WITHOUT TALENT THEY TRY HEROICALLY SALLY MURPHY DOES EVERYTHING SHE CAN AS EVELYN SHE IS ZEALOUS IN PURSUIT OF HER BIOLOGICAL PARENTS WISTFUL AS SHE IMAGINES WHAT LIFE MIGHT HAVE BEEN LIKE WITH THEM TOUGH AS SHE CHALLENGES THE LAWYERS AND HOODLUMS SENT BY HER ADOPTIVE PARENTS TO FETCH HER BACK TO TEXAS BUT NONE OF IT CAN ENLIVEN JOHN OLIVE'S THOUGHTLESS AND WITLESS SCRIPT SHE SINGS BUT THE CARL FINCH AND BOB LUCAS MELODIES AND MR LUCAS'S LYRICS FAIL EITHER TO MOVE THE PLOT OR THE AUDIENCE NEVERTHELESS MS MURPHY'S TALENT IS DISCERNIBLE BENEATH THE DROSS SHE MUST WORK WITH SHE HAS IN FACT ACTED WITH STEPPENWOLF BEFORE AND WILL BE FEATURED NEXT SPRING IN NEW YORK AS JULIE JORDAN IN THE REVIVAL OF CAROUSEL STEPPENWOLF RECENTLY ANNOUNCED THAT SHE HAS BEEN ADDED TO ITS ACTING ENSEMBLE PERHAPS FOR HER BRAVERY IN TAKING ON THE ROLE OF EVELYN DAVID SABIN HAS AN EVEN HARDER TIME AS CZERNIAK THE POLKA KING WITH NO HELP FROM THE SCRIPT HE HAS FIRST TO ESTABLISH HIMSELF AS A DRUNKEN LOUT THEN INSPIRED BY FINDING THE DAUGHTER HE DIDN'T KNOW HE'D LOST HE MUST BE REBORN AS THE POLKA KING BUT MR OLIVE'S SCRIPT GIVES HIM NO HELP AT ALL HE HAS NO CHARACTER TO PLAY JUST EMBARRASSING LINES THE EARTH GIGGLES WHEN WE POLKA WE DISBELIEVE HIM AS AN OLD DRUNK AND EQUALLY SO LATER AS AN EBULLIENT PHILANDERING VARIATION OF LAWRENCE WELK WITH NO SUPPORT FROM THE SCRIPT MR SABIN REALLY THROWS HIMSELF INTO THE TUNES FILLING THE THEATER WITH HIS VOICE BUT NOTHING MR SABIN CAN DO WOULD KEEP US INTERESTED IN BETWEEN THE SONGS WHICH ANYWAY ARE SLIGHT AND NOT EVEN LISTED IN THE PLAYBILL PROBABLY BECAUSE THEY ARE JUST DIVERSIONS AND DO NOT DRIVE THE PLOT IN WHAT COULD HAVE BEEN A TOUR DE FORCE THE VERY TALENTED BONNIE SUE ARP GETS TO PLAY VIRTUALLY ALL THE OTHER CHARACTERS WHO MOVE THROUGH THIS PRODUCTION INCLUDING CZERNIAK'S ZANY NEIGHBOR AN ASSORTMENT OF POLKA GROUPIES AN OFFICIOUS LAWYER AND THE LONGLOST MOM HERSELF BUT LIKE HER COLLEAGUES MS ARP CAN'T CREATE LIFE FROM LAME TORPID JOKES AND INEFFECTUALLY SKETCHED CHARACTERS COURAGEOUSLY SHE KEEPS COMING BACK IN DIFFERENT MAKEUP AND COSTUMES REACHING TOO FAR FOR LAUGHS AND DRAMA NONE OF HER EFFORTS PAY OFF HOWEVER AND SHE DOESN'T EVEN GET TO POLKA VERY MUCH WHAT KEPT MOST OF THE AUDIENCE FROM LEAVING AT THE INTERVAL WAS THE VIBRATONES A DELIGHTFUL ENSEMBLE OF POLKA MUSICIANS POLKA MAY NOT BE MY FAVORITE MUSIC BUT IT WAS ALL THAT RELIEVED ACTORS AND AUDIENCE ALIKE FROM THE GRINDING TEDIUM OF THE FATUOUS BOOK NONE OF THIS WAS THE DIRECTOR ERIC SIMONSON'S FAULT HE DOES WHAT HE CAN WITH THIS VEHICLE AND WE KNOW THAT HE CAN DO A GREAT DEAL MORE AS HE DID WITH STEPPENWOLF'S THE SONG OF JACOB ZULU FOR WHICH HE RECEIVED A TONY NOMINATION NEVERTHELESS HE MUST BEAR THE CURSE OF HAVING CHOSEN TO PURSUE THIS VENTURE SO WHY DID STEPPENWOLF AND MR SIMONSON DO IT PERHAPS IT WAS STEPPENWOLF'S PRICE FOR INITIATING MR SIMONSON INTO THE COMPANY LAST MONTH ALONG WITH MS MURPHY OR PERHAPS STEPPENWOLF FANCIES ITSELF AS THE THEATRICAL EQUIVALENT OF THE DISTINGUISHED FACULTY OF A TEACHING HOSPITAL A TEACHING HOSPITAL SEEKS THE CHALLENGE OF DIFFICULT CASES THE BETTER TO TEACH UNDERSTAND AND ULTIMATELY ARREST THE MOST LOATHSOME DISEASES THE SETTING IS VERY RIGOROUS FOR MEDICAL STUDENTS AND OFTEN LESS THAN COMFORTABLE FOR PATIENTS AT STEPPENWOLF THE MEMBERS OF THE AUDIENCE LIKE MEDICAL STUDENTS IN A SURGICAL AMPHITHEATER WATCH AS THESE TALENTED PERFORMERS SKILLFULLY TRY TO RESUSCITATE A HOPELESSLY SICK WORK EVELYN & THE POLKA KING IS A PATIENT WITH MORTAL SYMPTOMS IT OFFERS AN ASSORTMENT OF CHARACTERS ALL FEATURELESS CADAVERS IT TRACES A PLOT BUT NOTHING ANIMATES ITS TELLING THE STORY HAS NO EDGE WE KNOW FROM EVELYN'S FIRST APPEARANCE THAT SHE AND HER FATHER WILL FIND HER MOTHER BUT WHEN THEY DO THE MOTHER TURNS OUT TO BE AS FLAT AND UNCONVINCING A CHARACTER AS EITHER OF THEM MAYBE THE IDEA WAS FOR THE PRODUCERS AND THE AUDIENCE TO LEARN FROM THE PLAY'S BADNESS EVELYN & THE POLKA KING ATTEMPTS TO BE ABOUT HUMANITY THE SEARCH FOR ROOTS BUOYED BY NOSTALGIC MUSIC FROM THE OLD COUNTRY BUT THE IDEA FAILS IN ITS EXECUTION IT IS TASTELESS AND STALE AS WAS THE KIELBASA ON A ROLL THAT STEPPENWOLF SOLD ME AT INTERMISSION SEE RELATED LETTER LETTERS TO THE EDITOR INSULT TO OUR KIELBASA WSJ NOV 3 1993 9310180087 YY93 MM11 9311030134 931012 TOO CLEVER BY HALF BY IRVING KRISTOL THAT'S A BRITISH EXPRESSION TOO CLEVER BY HALF BUT IT'S ONE THAT OUGHT TO BE INCORPORATED INTO THE AMERICAN LEXICON IT REFERS TO PEOPLE WHO ARE VERY VERY SMART AND WHO THEN PROCEED TO USE THEIR WITS TO OUTSMART THEMSELVES LIVING WITH THE CLINTON ADMINISTRATION AS WE DO WE DESPERATELY NEED THAT BRITISH TERM THOUGH THE HISTORY OF THIS ADMINISTRATION IS A SUCCESSION OF TOOCLEVERBYHALF SCENARIOS THE CURRENT HEALTH CARE PROGRAM PROPOSED TO CONGRESS IS THE MOST EGREGIOUS EXAMPLE YET IT IS AN ABSOLUTELY BRILLIANT SCHEME FINELY ARTICULATED ITS THOUSANDS OF PARTS NEATLY INTERLOCKED WITH ONE ANOTHER ALL OBJECTIONS FORESEEN AND PREEMPTIVELY ANSWERED WITHIN THE TEXT ITSELF THAT TEXT OF THIS PROPOSAL IS SOME 250 PAGES LONG THE LEGISLATION ITSELF WILL BE WELL OVER 1000 PAGES AND IT IS INEVITABLE THAT THE SPECIFYING REGULATIONS WILL BE AT LEAST 10 TIMES LONGER A FEW VERY SMART PEOPLE IN THE WHITE HOUSE UNDERSTAND THIS SCHEME IN ITS EVERY PARTICULAR BUT IT IS IMPENETRABLE TO JUST ABOUT EVERYONE ELSE INCLUDING MEMBERS OF CONGRESS AND JOURNALISTS THE AVERAGE AMERICAN WHO NEVER QUITE GOT THROUGH COLLEGE AND WHO DOESN'T KNOW WHAT A RHODES SCHOLAR IS UNDERSTANDS THAT THERE IS SOMETHING VERY ODD WITH ANY PROGRAM THAT IS OUTLINED IN 250 PAGES AND DEMANDS MANY THOUSANDS OF PAGES OF LEGISLATION AND SUPPLEMENTARY REGULATIONS LEGISLATION OF THIS LENGTH AND COMPLEXITY EFFECTIVELY DISFRANCHISES THE AVERAGE CITIZEN WHICH IS WHY DESPITE BLAND AND BLIND APPROVAL BY THE LIBERAL MEDIA THERE IS NO GROUNDSWELL OF POPULAR ENTHUSIASM VISIBLE WHY THIS TOOCLEVERBYHALF SCHEME ON WHICH CONGRESS WILL PLAY ITS OWN COMPOSITIONS SURELY THERE WERE SIMPLER AND MORE SENSIBLE POSSIBILITIES WHY NOT AS MANY LIBERALS IN CONGRESS ARE ASKING SOME VERSION OF THE CANADIAN OR BRITISH NATIONAL HEALTH INSURANCE PLANS THEY ARE AFTER ALL POPULAR ENOUGH AT HOME WAS IT POLITICAL FEAR OF ANYTHING THAT COULD BE CALLED ACCURATELY ENOUGH SOCIALIZED MEDICINE NOW REBAPTIZED AS SINGLEPAYER INSURANCE PERHAPS NEVERTHELESS MY IMPRESSION IS THAT THE CLINTON PLAN IS MORE RADICAL NOT LESS THIS IS NOT A CASE OF BRINGING THE AMERICAN WELFARE STATE INTO LINE WITH WHAT PREVAILS IN THE OTHER WESTERN DEMOCRACIES A POPULAR MISAPPREHENSION THOSE SMART FOLKS IN THE WHITE HOUSE HAVE VERY CAREFULLY STUDIED THE CANADIAN AND EUROPEAN EXPERIENCE THEY HAVE SEEN THE PROBLEMS THAT SUCH NATIONAL HEALTH INSURANCE PROGRAMS ENCOUNTER AND THEY PROPOSE TO AVOID THOSE PROBLEMS BY A SKILLFUL PRESTIDIGITATION THE PURPOSE OF THIS MANEUVER IS TO INSULATE THE GOVERNMENT AS MUCH AS POSSIBLE FROM THE UNPOPULARITY OF THOSE HARD DECISIONS THAT ALL NATIONAL PLANS EVERYWHERE ARE NOW BEGINNING TO CONFRONT THOSE HARD DECISIONS WILL BE TRANSFERRED ELSEWHERE ONE CLUE AS TO WHY THE CLINTON PLAN TAKES THE SHAPE IT DOES IS TO BE FOUND IN THE FACT THAT ITS FORMULA FOR UNIVERSAL COVERAGE HAS THE EFFECT OF ABOLISHING THE PRIVATE SECTOR FOR MEDICAL INSURANCE AND MEDICAL TREATMENT THIS IS ACCOMPLISHED SURREPTITIOUSLY BY MAKING IT SO EXPENSIVE AND DIFFICULT FOR PATIENTS TO MOVE INTO THAT SECTOR THAT IT WILL SHRINK TO A DEGREE WHERE IT WILL NO LONGER BE ABLE TO SUPPORT AN ADEQUATE NUMBER OF PHYSICIANS SURGEONS ANESTHESIOLOGISTS ETC THIS IS NOT THE ENGLISH OR CANADIAN PLAN IT IS MUCH MORE FARREACHING THE QUESTION NATURALLY ARISES WHY ONE'S INCLINATION IS TO JUMP TO THE CONCLUSION THAT THIS SIMPLY REVEALS THE STATIST AND LEVELING ATTITUDES THAT PREVAIL IN THIS WHITE HOUSE THOSE ATTITUDES CERTAINLY EXIST AND THEY HELP EXPLAIN WHY THIS SCHEME IS NOT ONLY UNIVERSAL BUT SO COMPREHENSIVELY SO PLUGGING EVERY SINGLE IMAGINABLE HOLE IN THE INSURANCE SAFETY NET AND THEN TIGHTENING THE TAX NET ON THE MORE AFFLUENT TO CONTAIN COSTS BUT IT IS HARD TO BELIEVE THAT THIS IS A SUFFICIENT EXPLANATION FOR SO BOLD AND CONTROVERSIAL A STEP MY OWN READING IS THAT THE ADMINISTRATION IS WITH COOL FORETHOUGHT ADDRESSING THE MAJOR PROBLEM THAT TODAY AND EVEN MORE SO TOMORROW ENGENDERS CRISES IN ALL NATIONAL HEALTH INSURANCE SCHEMES BUT CHARACTERISTICALLY IT ADDRESSES THIS PROBLEM WITH AN INGENUITY DELIBERATELY OBSCURED BY COMPLEXITY ALL NATIONAL HEALTH INSURANCE PLANS IN ALL OF THE WESTERN DEMOCRACIES ARE IN AN ACUTE FINANCIAL CRISIS UNIVERSAL COVERAGE TURNS OUT TO MEAN EXPLODING COSTS THE ROOTS OF THIS PHENOMENON AND THIS CRISIS HAVE BEEN MAGISTERIALLY EXPLORED BY WILLARD GAYLIN PRESIDENT OF THE HASTINGS CENTER FOR BIOETHICAL RESEARCH IN A RECENT ESSAY IN HARPER'S THOSE ROOTS HAVE NOTHING TO DO WITH CALLOUS PROFITSEEKING BY DRUG COMPANIES INSURANCE COMPANIES DOCTORS AND SURGEONS OR WITH WASTEFUL BUREAUCRACIES THEY ARE INTEGRAL TO THE SCIENTIFIC ACCOMPLISHMENTS OF MODERN MEDICINE ACCOMPLISHMENTS THAT ARE HAILED WHEN REPORTED VILIFIED WHEN THE BILLS COME DUE DR GAYLIN IDENTIFIES THREE SUCH AMBIGUOUS ACCOMPLISHMENTS SO MODERN MEDICINE WORKS ITS MIRACLES AND MANY DUBIOUS MIRACLES TOO WITH A TECHNOLOGICAL DYNAMISM AND WITH UTTER DISREGARD FOR COSTBENEFIT ANALYSIS AS A RESULT MEDICAL COSTS ESCALATE APPARENTLY WITHOUT END SINCE MEDICAL PROGRESS ALSO ESCALATES WHAT CAN BE DONE ABOUT IT WHAT WE NOW CALL THE SINGLEPAYER NATIONAL HEALTH INSURANCE PLANS ARE ALL RESPONDING IN PRETTY MUCH THE SAME WAY IN WESTERN EUROPEAN DEMOCRACIES THE GOVERNMENT RATIONS MEDICAL CARE BY QUEUING THOSE WITH MEDICAL PROBLEMS THAT ARE NOT LIFETHREATENING EG A HERNIA HAVE TO WAIT MONTHS OR EVEN YEARS UNTIL A HOSPITAL BED OR A SURGEON IS AVAILABLE THIS CREATES A LOT OF GRUMBLING OF COURSE BUT ADEQUATE TREATMENT IS EVENTUALLY MADE AVAILABLE SINCE AN ALTERNATIVE MARKET IS OFTEN AVAILABLE TO THOSE WHO CAN AFFORD IT THAT IS THOSE WHO CAN AFFORD TO PAY FOR EXPENSIVE PRIVATE CARE IN ADDITION TO THE COMPULSORY NATIONAL INSURANCE TAX THE PRESSURE IS TO SOME EXTENT ALLEVIATED THE TROUBLE WITH QUEUING IS THAT IT DOESN'T SAVE ENOUGH MONEY THE EUROPEAN DEMOCRACIES STILL FACE UNENDING FISCAL INDEBTEDNESS THAT WILL STIFLE THEIR ECONOMIES JUST AS OUR OWN ESCALATING MEDICAL COSTS THREATEN TO STIFLE THE ECONOMIC VITALITY OF OUR MAJOR BUSINESS INSTITUTIONS WHAT IS NEEDED TO PUT IT BLUNTLY IS A LARGER MEASURE OF RUTHLESSNESS IN OUR DECISIONS ON WHO IS TO BE ELIGIBLE FOR EXPENSIVE MEDICAL TREATMENT TREATMENT THAT OCCASIONALLY WORKS A CURE BUT MORE OFTEN ALLEVIATES THE SYMPTOMS OR POSTPONES DEATH FOR A WHILE TOLERATING SUCH DECISIONS IN TURN REQUIRES A LARGER MEASURE OF BOTH REALISM AND STOICISM ON THE PART OF THE CITIZENRY BUT THE SPIRIT AND IDEOLOGY OF THE WELFARE STATE NOW EMBEDDED IN THE POPULAR MIND IN OUR POPULAR CULTURE AND IN POPULAR ATTITUDES HAS PERSUADED US THAT REALISM AND STOICISM ARE ANACHRONISTIC VIRTUES SO OUR POLITICIANS KEEP HOLDING OUT GLOWING PROSPECTS AND SHY AWAY FROM CONTEMPLATING THE MEDICAL AND ECONOMIC REALITIES THE CLINTON PLAN ADDRESSES THIS PROBLEM IN ITS TYPICAL TOOCLEVERBYHALF WAY IT PROTECTS THE POLITICAL SECTOR BY STRUCTURING ITS UNIVERSAL HEALTH CARE IN SUCH A WAY THAT HOLDING DOWN COSTS WILL BE THE RESPONSIBILITY OF THE INSURANCE COMPANIES THE HMOS AND THE MEDICAL PROFESSIONS GENERALLY JUST HOW THEY ARE SUPPOSED TO MAKE THE HARD DECISIONS THAT THIS INVOLVES WITHOUT PROVOKING ENORMOUS CONTROVERSY IS A QUESTION THAT IS NEVER ANSWERED OR ASKED IT IS HOPED OBVIOUSLY THAT THE DIFFUSION OF HEALTH CARE IN THIS BEWILDERINGLY COMPLEX SCHEME WILL SOMEHOW MAKE THOSE HARD DECISIONS WHEN MADE MORE DIFFICULT TO REJECT IF NOT LESS OBJECTIONABLE EVEN NOW A COUPLE OF HMOS HAVE DECIDED NOT TO PAY FOR AN EXPENSIVE PRESCRIPTION DRUG THAT SLOWS THE PROGRESS OF ALZHEIMER'S DISEASE FOR SOME PATIENTS SOME OF THE TIME THIS IS A FORETASTE OF THINGS TO COME THOUGH IT IS INTERESTING TO SEE HOW THESE PATIENTS WILL REACT WHAT IS CERTAIN IS THAT ENROLLED IN AN HMO THE POWER OF PROTEST IS LIMITED THE CLINTON PLAN WILL NEVER BE A REALITY CONGRESS WILL TINKER WITH IT AND DESTROY ITS NICELY ARTICULATED STRUCTURE BUT EVEN IF IT WERE TO BECOME A REALITY IT WOULDN'T WORK BECAUSE IT DODGES THE HARD ISSUES ONE CAN SYMPATHIZE WITH THIS STRATEGY THESE ARE INDEED AMONG THE MOST PAINFUL AND DIFFICULT ISSUES A DEMOCRATIC GOVERNMENT COULD POSSIBLY FACE BUT ONE CANNOT DODGE FOREVER NO MATTER HOW CLEVER OR CUNNING OR COMPLEX THE EVASIVE ACTION EVENTUALLY THE PUBLIC HAS TO BE INSTRUCTED AND LED TO FACE REALITY NO EASY MATTER GIVEN THE CLIMATE OF OPINION OF WISHFUL THINKING THAT PREVAILS IN ALL THE DEMOCRACIES AND THEIR WELFARE STATES MR KRISTOL AN AMERICAN ENTERPRISE INSTITUTE FELLOW COEDITS THE PUBLIC INTEREST AND PUBLISHES THE NATIONAL INTEREST SEE RELATED LETTERS LETTERS TO THE EDITOR NATIONALIZATION GOAL OF CLINTON HEALTH PLAN WSJ NOV 3 1993 9310120073 YY93 MM11 9311030095 931007 POLITICS & POLICY SOME FORMER FOES OF NAFTA JOIN ADMINISTRATION FIND DISCOMFORT IN CLASH OF PAST PRESENT VIEWS BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN THE EARLY DAYS OF THE NORTH AMERICAN FREE TRADE AGREEMENT CHUCK FOX OF FRIENDS OF THE EARTH HELPED DRUM UP OPPOSITION TO IT AMONG OTHER ENVIRONMENTAL GROUPS AND AMONG LAWMAKERS THESE DAYS MR FOX IS STILL WORKING ON NAFTA BUT HIS PITCH AND HIS PERSPECTIVE HAVE CHANGED IT IS A TRULY PRECEDENTSETTING GREEN' TRADE AGREEMENT HE SAYS THE DIFFERENCE IS THAT MR FOX IS NO LONGER WITH FRIENDS OF THE EARTH NOW HE IS A CLINTON ADMINISTRATION OFFICIAL A SPECIAL ASSISTANT AT THE ENVIRONMENTAL PROTECTION AGENCY ASSIGNED TO THE ADMINISTRATION'S NAFTA WAR ROOM WHOSE JOB IS TO LOCATE AND COORDINATE SUPPORT AMONG ENVIRONMENTALISTS WHO SUPPORT THE ACCORD THE DEMOCRATS' FAMILY FEUD OVER THE FREETRADE AGREEMENT HAS STRAINED MANY OLD ALLIANCES BUT FEW PEOPLE ARE IN MORE AWKWARD POSITIONS THAN THOSE LIKE MR FOX WHO HAVE JOINED THE ADMINISTRATION AND NOW FIND THEMSELVES CAUGHT BETWEEN THEIR PAST AND THEIR PRESENT OFTEN THEY ARE TARGETS OF VITRIOL FROM FORMER COLLEAGUES IN THE ANTINAFTA MOVEMENT WHO REFER TO THEM AS BENEDICT ARNOLDS OR WORSE IT'S LIKE HAVING YOUR SIBLING RUN AWAY FROM HOME AT WARTIME SAYS LORI WALLACH OF THE RALPH NADERAFFILIATED GROUP PUBLIC CITIZEN AND WHEN THEY TURN UP AGAIN THEY HAVE SWITCHED SIDES AND ARE OPENING FIRE ON YOUR HOUSE OTHER OBSERVERS LESS EMOTIONALLY INVOLVED SUGGEST THAT THE PRESENCE OF SO MANY FORMER FOES OF NAFTA IN THE ADMINISTRATION REINFORCES THE PUBLIC PERCEPTION THAT WASHINGTON IS FULL OF HIRED GUNS CAPABLE OF ARGUING ANY SIDE OF ANY ISSUE THIS SAYS GEORGETOWN UNIVERSITY POLITICAL SCIENTIST JAMES REICHLEY IS WHAT THE PUBLIC REGARDS AS CYNICISM THE OFFICIALS INVOLVED STRONGLY DISPUTE SUCH INTERPRETATIONS ARGUING THAT THEY KNOW MORE ABOUT THE AGREEMENT THAN WHEN THEY OPPOSED IT AND THAT THE SIDE DEALS ON LABOR AND THE ENVIRONMENT THAT PRESIDENT CLINTON NEGOTIATED WHEN HE CAME INTO OFFICE HAVE MADE THE ACCORD ACCEPTABLE MR FOX FOR ONE INSISTS THAT HE STILL CARES ABOUT PRESERVING THE ENVIRONMENT PARTICULARLY AT THE USMEXICAN BORDER I THINK IT IS FAIR TO SAY THAT THE COMMITMENT WE ARE PUTTING FORWARD TO THE BORDER IS REAL HE SAYS BUT MANY OFFICIALS ACKNOWLEDGE THE DISCOMFORT IN THEIR POSITION IT IS TOUGH CONCEDES COMMERCE SECRETARY RONALD BROWN WHO NOW SUPPORTS THE TRADE ACCORD AFTER OPPOSING IT WHEN HE WAS THE DEMOCRATIC PARTY'S CHAIRMAN MR BROWN SAYS HE OFTEN HAS TO EXPLAIN THE SWITCH TO OLD FRIENDS LIKE UNITED STEEL WORKERS PRESIDENT LYNN WILLIAMS THE SECRETARY SAYS HE OPPOSED THE PACT BECAUSE AS PARTY CHAIRMAN HIS PRINCIPAL GOAL WAS TO ELECT DEMOCRATS HE SUPPORTS IT NOW HE SAYS BECAUSE HIS PRINCIPAL GOAL AS COMMERCE SECRETARY IS TO PROMOTE ECONOMIC GROWTH I CAN DISTINGUISH BETWEEN THE ROLES HE SAYS THAT THE PARTY JOB WAS CLEARLY A POLITICAL ROLE BUT THE SUBSTANCE OF NAFTA IS ABSOLUTELY CRITICAL IT CREATES JOBS AND IT LOOKS TO THE FUTURE ANOTHER WHO FEELS SOME DISCOMFORT IS WILLIAM DALEY APPOINTED BY THE PRESIDENT TO LEAD THE CHARGE FOR NAFTA WHEN MR DALEY IS ASKED ABOUT HIS RELATIONS THESE DAYS WITH THE UNION LEADERS WHO HELPED MAKE HIS FATHER AND BROTHER MAYORS OF CHICAGO HE SAYS THEY DON'T CALL ME ANYMORE NOT EVERYONE THE ADMINISTRATION HAS SOUGHT TO ENLIST IN THE NAFTA CRUSADE HAS BEEN WILLING FOR INSTANCE REID WILSON A FORMER SIERRA CLUB OFFICIAL NOW WITH THE EPA TURNED DOWN A REQUEST THAT HE MOVE TO THE WHITE HOUSE AND PUSH FOR THE ACCORD BUT FOR OTHERS THE CHOICE COMES DOWN TO ONE OF DUTY OVER CONSISTENCY ONE OF THOSE IN THE MOST EMBARRASSING OF POSITIONS IS MICHAEL WALDMAN WHO SHAPES MR CLINTON'S NAFTA COMMUNICATIONS STRATEGY BEFORE JOINING THE ADMINISTRATION HE WAS DIRECTOR OF PUBLIC CITIZEN'S CONGRESS WATCH AND EVEN COAUTHORED WITH MR NADER A NEW REPUBLIC ARTICLE ACCUSING NAFTA BACKERS OF SEEKING GLOBAL COMMERCE BUT WITHOUT GLOBAL LAW TO HOLD THEM ACCOUNTABLE NOW MR WALDMAN TAKES THE COMPANY LINE I WORK FOR THE PRESIDENT AND THIS IS A TOP PRIORITY FOR THE PRESIDENT AND IT IS AN HONOR TO BE ABLE TO WORK ON IT THOSE WHO KNOW HIM HOWEVER INSIST THAT IN PRIVATE MR WALDMAN WANTS A DIFFERENT ASSIGNMENT AND MAY QUIETLY SLIP AWAY TO WORK ON CAMPAIGN FINANCE REFORM EVERY TIME HE TALKS ON NAFTA HIS PRIOR WORDS WILL BE PARADED IN FRONT OF HIM MR NADER SAYS OTHERS DON'T HAVE THE LUXURY OF SLIPPING AWAY EVEN IF THEY WANTED TO ONE IS HOWARD PASTER MR CLINTON'S LEGISLATIVE LIAISON AT ONE TIME MR PASTER LOBBIED FOR THE UNITED AUTO WORKERS UNION AND HAS LONGSTANDING TIES TO HOUSE MAJORITY LEADER RICHARD GEPHARDT OF MISSOURI WHO HAS BROKEN WITH THE PRESIDENT ON NAFTA MR PASTER INITIALLY KEPT A LOW PROFILE ON NAFTA WHITE HOUSE AIDES PUT OUT THE WORD THAT HE WAS FOCUSING PRIMARILY ON FIRST THE BUDGET THEN HEALTH CARE BUT HIS COMPARATIVE ABSENCE ON THE ISSUE DREW COMPLAINTS FROM REPUBLICAN SUPPORTERS OF THE FREETRADE ACCORD WHO SUGGESTED THAT IF THEY WERE BACKING THE PRESIDENT THE LEAST THEY COULD EXPECT WAS THAT HIS OWN LOBBYIST DO SO TOO WE ARE PLAYING WITH OUR FIRST TEAM SAYS TONY BLANKLEY THE SPOKESMAN FOR HOUSE GOP WHIP NEWT GINGRICH OF GEORGIA WE HOPED OUR ALLIES WOULD PUT OUT THEIR FIRST TEAM MR PASTER HAS LATELY BEEN MORE VISIBLE HE SAYS HE HAD ALWAYS PLANNED TO BE ONCE THE BUDGET WAS PASSED BUT SOME NAFTA FOES SUGGEST HE STILL ISN'T HAPPY ABOUT IT BILL CUNNINGHAM THE AFLCIO'S TRADE AND TAX LOBBYIST SAYS HE COULDN'T HELP BUT NOTICE MR PASTER AT A PRONAFTA NEWS CONFERENCE HE LOOKED LIKE SOMEONE WHO HAD A NOTE FROM HIS MOTHER SAYING HE HAD TO BE THERE REGARDLESS OF HOW THE NAFTA BATTLE PLAYS OUT THE BAD FEELINGS ENGENDERED BY IT SEEM LIKELY TO PERSIST PUBLIC CITIZEN'S MS WALLACH WHO STILL HAS MR WALDMAN'S ANTINAFTA WRITINGS TAPED TO HER OFFICE WALL FOR REFERENCE SAYS BLUNTLY WHEN YOU LOOK AT THOSE FOLKS IN THOSE JOBS YOU CAN COME TO ONLY TWO CONCLUSIONS THEIR HEART IS NOT IN IT OR THEY HAVE NO PRINCIPLES THE DEBATE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT HAS LEFT DEMOCRATS DIVIDED AND CONFUSED SEE RELATED LETTER LETTERS TO THE EDITOR WHY I STAYED WHERE I AM WSJ NOV 3 1993 9310070112 YY93 MM11 9311030082 930915 RULE OF LAW A FRIVOLOUS SECURITIES SUIT CLAIMS ANOTHER VICTIM ME BY JOHN G ADLER OVER THE PAST THREE YEARS ADAPTEC THE COMPANY I HEAD HAS PAID OUT MORE THAN 2 MILLION TO FINANCE A FISHING EXPEDITION LAUNCHED BY A LAW FIRM THAT PAID JUST 120 TO FILE A CLASSACTION LAWSUIT THE SUIT ACCUSED US OF VIOLATING SECURITIES LAWS HERE'S WHAT HAPPENED ON DEC 10 1990 WE HELD A CONFERENCE CALL WITH SECURITY ANALYSTS WHO FOLLOW THE COMPANY WE LET THEM KNOW THAT DUE TO A COMBINATION OF BUSINESS EVENTS THE COMPANY'S REVENUES FOR THE QUARTER ENDING DECEMBER 1990 WOULD BE ABOUT 15 LOWER THAN ANTICIPATED IN THEIR WRITTEN REPORTS NEVERTHELESS WE EXPECTED TO TURN IN A DISTINCTLY PROFITABLE PERFORMANCE FOR THE QUARTER THE NEXT DAY OUR STOCK DROPPED FROM 15 TO 988 WITHIN FOUR DAYS A CLASSACTION LAWSUIT WAS FILED DESPITE OUR 23 CONSECUTIVE QUARTERS OF PROFITABILITY THE SUIT ALLEGED BROAD FINANCIAL WRONGDOING THAT SUPPOSEDLY OCCURRED DURING THE 14 MONTHS BEFORE THE SUIT WAS FILED SPECIFICALLY THE SUIT CHARGED ADAPTEC EMPLOYED ACCOUNTING PRACTICES THAT VIOLATED GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND THAT ARTIFICIALLY INFLATED ADAPTEC'S REVENUES EARNINGS AND ASSETS DURING THE CLASS PERIOD THE SUIT WENT ON TO STATE AS FALSE AND MISLEADING OUR CLAIM TO BE A SUCCESSFUL WELLMANAGED AND GROWING COMPANY IN FACT THE QUARTER IN WHICH WE WERE SUED AND DURING EVERY QUARTER TO DATE THE COMPANY WAS GROWING AND PROFITABLE THE PLAINTIFFS SERVED WRITTEN DISCOVERY DEMANDS CONTAINING 105 BROADBASED REQUESTS SUCH AS ALL DOCUMENTS THAT CONSTITUTE DISCUSS OR REFER TO SALES OR ORDERS IN GENERAL AND ALL DOCUMENTS THAT DISCUSS OR REFER TO PROFIT MARGINS AT ADAPTEC WE HAD TO PRODUCE 1500 BOXES OF COMPANY DOCUMENTS WHICH THE PLAINTIFFS SEARCHED IN AN EFFORT TO JUSTIFY THEIR CASE EVEN MORE DEVASTATING THE PLAINTIFFS DID NOT SERVE DISCOVERY ON US FIRST BUT RATHER ON OUR 10 MAJOR CUSTOMERS AND SUPPLIERS WE WERE FORCED TO SEEK A JUDICIAL ORDER TO RECTIFY THIS THE CLAIM HAD NO MERIT YET WE WERE COMPELLED TO SPEND THOUSANDS OF HOURS PRODUCING PAPER AND THIS WAS BEFORE WE GAVE ANY DEPOSITIONS FINALLY TO END THE EXPENSE OF LITIGATION AND THE DISTRACTION OF THE COMPANY'S MANAGEMENT ON AUG 10 I RELUCTANTLY AGREED TO SETTLE OUT OF COURT OUR EXPERIENCE WITH A FRIVOLOUS LAWSUIT IS NOT UNIQUE OTHER COMPANIES HAVE BEEN SUED ESPECIALLY HIGHTECHNOLOGY COMPANIES LIKE OURS WHOSE STOCKS USUALLY SELL AT A HIGH MULTIPLE OF EARNINGS AND PRICE VOLATILITY INHERENT IN HIGH P/E RATIOS WHICH CREATES OPENINGS FOR THESE LAWSUITS WHEN STOCK PROFITS FALL A HANDFUL OF LAW FIRMS WILL ROUND UP PLAINTIFFS AND SUE ALLEGING THAT THE COMPANY'S MANAGEMENT KNEW OR SHOULD HAVE FORESEEN THAT THE STOCK PRICE WOULD DECLINE THEY SUE THE COMPANY ITS ACCOUNTING FIRM ITS INSURER AND SOMETIMES ITS UNDERWRITER OFTEN THE COMPANY'S CUSTOMERS AND ANALYSTS ARE SUBJECT TO LEGAL HARASSMENT AS WELL MANY COMPANIES RATHER THAN RISK DAMAGE TO THEIR REPUTATIONS THE CONTINUED BURDENSOME COSTS AND THE WASTE OF TIME AND ENERGY INVOLVED IN GOING TO TRIAL SIMPLY PAY UNDESERVED SETTLEMENTS SO THEY CAN GET BACK TO WORK THE RESULTSCASH FOR PLAINTIFFS AND LAWYERS WHO NEVER HAVE TO PROVE THEIR CASE ENCOURAGE THESE FRIVOLOUS CLASSACTION SECURITIES LAWSUITS I AM NOT SUGGESTING THAT ALL SUCH SUITS ARE FRIVOLOUS AND UNWARRANTED BUT MANY STEM NOT FROM FACT BUT FROM THE KNOWLEDGE THAT COMPANIES WILL SETTLE RATHER THAN BECOME MIRED IN A TRIAL THE EFFECTS OF SUCH SUITS ON AMERICAN BUSINESS ARE RUINOUS FIRST THE THREAT OF SECURITIES SUITS DISCOURAGES EXECUTIVES FROM COMMUNICATING OPENLY WITH THE FINANCIAL MARKETS THE LONGTERM EFFECT OF OUR OFTREPEATED NOCOMMENTS IS TO LIMIT THE ABILITY OF INVESTORS TO MAKE INFORMED CHOICES SECOND THE THREAT OF COSTLY AND FRIVOLOUS SECURITIES SUITS MAKES IT HARDER TO ATTRACT PEOPLE TO SERVE AS DIRECTORS ON CORPORATE BOARDS A JUNE SURVEY BY THE AMERICAN BUSINESS CONFERENCE A NATIONAL COALITION OF CHIEF EXECUTIVES OF FASTGROWING MIDSIZED COMPANIES FOUND THAT 60 OF ITS MEMBERS SAID THE POSSIBILITY OF BEING SUED HAS FORCED THEM TO WEIGH MORE CAREFULLY THE DECISION TO JOIN A BOARD 24 REFUSE TO SERVE STARTUP FIRMS AND COMPANIES VULNERABLE TO SECURITIES LITIGATION 7 SAID THEY REFUSE TO JOIN ANY BOARDS WORST OF ALL THESE ABUSIVE SUITS CUT THE ABILITY OF AMERICAN COMPANIES TO COMPETE GROW ENTER NEW MARKETS PURSUE NEW VENTURES AND CREATE NEW JOBS SECURITIES SUITS HAVE BECOME A LITIGATION TAXLEVIED AT A TIME WHEN THE NATION'S BUSINESSES ARE STRUGGLING AGAINST RECESSION AND RISING COSTS IN OUR CASE THE MULTIMILLIONDOLLAR FISHING EXPEDITION WOULD HAVE PAID FOR 20 ADDITIONAL ENGINEERS AND OF COURSE THERE IS NO WAY TO GAUGE THE OPPORTUNITY COSTS SUCH A BATTLE EXTRACTS WE FOUGHT THIS BATTLE FOR MORE THAN TWO YEARS AND WHILE OUR FINANCIAL RESULTS REMAIN SUPERB I CANNOT HELP BUT WONDER WHAT MORE WE COULD HAVE ACHIEVED HAD THIS BURDEN NOT BEEN PLACED ON OUR SHOULDERS WHEN A COMPANY LIKE OURS AND ITS CUSTOMERS AND SUPPLIERS ARE HELD HOSTAGE TO VIRTUALLY UNLIMITED DISCOVERY DEMANDS SIMPLY BECAUSE THE STOCK PRICE DROPPED THERE IS A NATIONAL PROBLEM AMERICAN BUSINESS NEEDS HELP FROM THE LAWMAKERS TO HALT ABUSIVE SECURITIES SUITS I DO NOT ASK FOR A WALL AGAINST LEGAL ACTIONS SOME OF WHICH ARE VALID AND DESERVE FAIR TREATMENT I ASK FOR A FILTER TO KEEP OUT FRIVOLOUS SUITS THAT DEVOUR OUR TIME AND RESOURCES THERE ARE THREE WAYS GOVERNMENT CAN HELP AS INDICATED IN BILLS SPONSORED BY SEN PETE DOMENICI R NM AND REP BILLY TAUZIN D LA SHAREHOLDER SUITS ARE HITTING AMERICAN COMPANIES WHERE IT HURTS IN OUR ABILITY TO BE CREATIVE TAKE RISKS AND LEARN FROM OUR MISTAKES NO COMPANY SHOULD MISTREAT ITS SHAREHOLDERS BUT ABUSIVE LAWSUITS AMOUNT TO A TAX ON INNOVATION SINCE INNOVATION IMPLIES RISK ONCE IN A WHILE THAT MEANS LOSING THE ONLY WAY TO ELIMINATE RISK OF COURSE IS NEVER TO DO ANYTHING NEW BUT THAT WOULD MEAN FEWER JOBS AND LESS COMPETITION AND ISN'T THAT THE OPPOSITE OF WHAT WE'RE ALL TRYING TO ACHIEVE MR ADLER IS CEO OF ADAPTEC A SUPPLIER OF HARDWARE AND SOFTWARE IN MILPITAS CALIF SEE RELATED LETTERS LETTERS TO THE EDITOR DISCLOSE QUICKLY AVOID SHARKS WSJ OCT 11 1993 SEE RELATED LETTER LETTERS TO THE EDITOR SERIOUSLY IT'S ANYTHING BUT FRIVOLOUS WSJ NOV 3 1993 9309150147 YY93 MM10 9310110052 YY93 MM11 9311020190 931102 WHO'S NEWS GUERLAIN SA GUERLAIN SA PARIS PATRICK WATERFIELD 52 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE US UNIT OF THIS FRAGRANCE COSMETICS AND SKINCARE CONCERN SUCCEEDING JULIA A FARRELL 39 WHO LEFT THE COMPANY MR WATERFIELD HAD BEEN MANAGING DIRECTOR OF THE COMPANY'S FAR EAST OPERATIONS 9311020189 931102 WHO'S NEWS AMOCO CORP AMOCO CORP CHICAGO MICHAEL H WILSON 55 YEARS OLD WAS ELECTED A DIRECTOR OF THIS OIL COMPANY INCREASING THE BOARD TO 14 MEMBERS UNTIL JUNE MR WILSON WAS CANADA'S MINISTER FOR INTERNATIONAL TRADE AND MINISTER OF INDUSTRY SCIENCE AND TECHNOLOGY 9311020188 931102 POLITICS & POLICY NAFTA IS WEDGE ISSUE FOR DEMOCRATIC LEADERSHIP BUT IT'S NOT REPUBLICANS WIELDING THE HAMMER BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AMONG THE SHARPLY DIVIDED HOUSE DEMOCRATS THEY ARE THE TWO FACES PRO AND CON IN THE DEBATE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT FOR BOTH REP DAVID BONIOR OF MICHIGAN AND REP VIC FAZIO OF CALIFORNIA THE ISSUE IS JOBS BUT IT IS AN ISSUE THEY PRESENT IN VASTLY DIFFERENT TERMS THIS IS LIFE OR DEATH FOR A LOT OF WORKERS SAYS REP BONIOR REP FAZIO MEANWHILE TALKS OF THE NET JOB CREATION IN THE EXPORT POSSIBILITIES TO BE OPENED WITH MEXICO AND CANADA WITH A DISPROPORTIONATE SHARE OF THOSE JOBS GOING TO HIS CALIFORNIA THE DISAGREEMENT BETWEEN THESE TWO MEN BOTH OF THEM MEMBERS OF THE PARTY LEADERSHIP HAS IMPLICATIONS WELL BEYOND THE FATE OF THE BELEAGUERED FREETRADE PACT IT REFLECTS A FUNDAMENTAL DEBATE OVER THE FUTURE OF THE DEMOCRATIC PARTY IN CONGRESS MR BONIOR WHO AS MAJORITY WHIP IS NO 3 IN THE LEADERSHIP HIERARCHY PERSONIFIES THE PARTY'S TRADITIONAL ROOTS AMONG BLUECOLLAR UNIONIZED WORKERS IN OLDER METROPOLITAN AREAS MR FAZIO THE HEAD OF THE CAMPAIGN AND FUNDRAISING OPERATION REFLECTS A MORE SUBURBAN WHITECOLLAR SENSIBILITY THE KIND OF NEW DEMOCRAT FREETRADE THINKING TO WHICH PRESIDENT CLINTON GIVES VOICE IT'S A CONFLICT SAYS JAMES REICHLEY A POLITICAL SCIENCE PROFESSOR AT GEORGETOWN UNIVERSITY BETWEEN THOSE WHO ARE TRYING TO MAINTAIN THE NEW DEAL TRADITION AND THOSE WHO FEEL FOR POLITICAL OR SUBSTANTIVE REASONS THAT IT'S IMPORTANT FOR THE PARTY TO GO IN A NEW DIRECTION TO REACH FOR SUPPORT IN THE MIDDLE CLASS AND BURY THE OLD DIFFERENCES WITH BUSINESS IN THE CASES OF REPS BONIOR AND FAZIO IT'S ENTIRELY POSSIBLE THAT THE TENSION BETWEEN THESE TWO VISIONS OF THE PARTY'S FUTURE COULD ONE DAY PLAY OUT ON A MORE DIRECT PERSONAL LEVEL BOTH MR BONIOR 48 YEARS OLD AND MR FAZIO 51 ARE POPULAR WITH THEIR COLLEAGUES AND ARE CONSIDERED POTENTIAL RIVALS FOR DEMOCRATIC LEADER BEFORE DECADE'S END ASSUMING SPEAKER THOMAS FOLEY MOVES ON AND MAJORITY LEADER RICHARD GEPHARDT SUCCEEDS HIM REP BONIOR'S OPPOSITION TO NAFTA WAS NEVER IN QUESTION ROOTED AS HE IS IN DETROIT'S AUTOMAKING STRONGLY UNIONIZED SUBURBS AREAS LIKE THOSE ARE GROUND ZERO THEIR RESIDENTS BELIEVE FOR THE JOBLOSS FALLOUT OF THE FREETRADE PACT WHAT HAS SURPRISED SOME THOUGH IS THE ARDOR WITH WHICH HE'S BATTLING A DEMOCRATIC PRESIDENT FOR MR BONIOR IT'S AN ISSUE AS MUCH OF CULTURE AS OF POLITICS THE ONETIME SEMINARIAN PROBATION OFFICER AND SOCIAL WORKER SEES NAFTA PROPONENTS AS THE ELITES CORPORATE HEADS AND EDITORIAL WRITERS AND HE BELIEVES THAT THEY IMPLICITLY TAR HIM AND OTHER FOES FROM WORKINGCLASS AREAS AS IGNORANT UNWASHED AND DOING IT FOR OUR OWN POLITICAL NEEDS THEY DON'T UNDERSTAND HE SAYS THAT FOR MOST OF US THIS IS WHERE WE COME FROM THIS IS WHO WE ARE IN 1989 MR BONIOR WAS ELECTED WHIP BY PROMISING HOUSE DEMOCRATS AN AGGRESSIVE VOICE AGAINST THE THENREPUBLICAN WHITE HOUSE HIS THEME THAT AMERICA MUST ADDRESS ITS OWN PROBLEMS FIRST ECHOES NOW IN THE NAFTA DEBATE I SUPPORT OUR INTERNATIONAL INVOLVEMENT HE SAYS BUT NOT AT THE EXPENSE OF AMERICAN WORKERS SINCE SPRING HE'S BEEN ORCHESTRATING STRATEGY MEETINGS AND WEEKLY TELEVISED ATTACKS IN THE HOUSE AND LOBBYING COLLEAGUES MR BONIOR ARGUES THAT JOB FLIGHT TO MEXICO WILL SOAR IF NAFTA IS APPROVED AND THAT THOSE WHO LOSE JOBS WILL AT BEST FIND NEW WORK AT MUCHREDUCED PAY DEPRESSING THE NATION'S STANDARD OF LIVING HE BLUNTLY CONDEMNS MEXICO'S POLITICAL LEADERS ALLEGING THAT THEY HOLD DOWN WAGES WRECK THE ENVIRONMENT CORRUPT THE JUDICIAL SYSTEM AND EVEN BEAR RESPONSIBILITY FOR KILLING OPPOSITION FIGURES AND WRITERS HIS RHETORIC AT TIMES STRIKES SOME COLLEAGUES AS TOO ANTIMEXICO THAT TYPE OF ATTACK ON A NEIGHBOR AND ALLY IS UNNECESSARY AND COUNTERPRODUCTIVE SAYS TEXAS REP CHET EDWARDS WHO HAS DECIDED TO SUPPORT NAFTA BUT MR BONIOR SEES HIS FIGHT AS ONE FOR MEXICO'S WORKERS TOO AND APPROACHES IT WITH THE SAME MORALISTIC INTENSITY WITH WHICH HE ONCE OPPOSED US INTERVENTION IN CENTRAL AMERICA THAT 1980S FIGHT WON HIM FEW FANS BACK IN MICHIGAN BUT NAFTA IS A DIFFERENT STORY MR BONIOR'S HOME DISTRICT HAS BECOME A SYMBOL OF THE DRIFT OF MORE CONSERVATIVE ETHNIC BLUECOLLAR VOTERS FROM HIS PARTY AND THE LIBERAL REPRESENTATIVE HAS SURVIVED REPEATED ELECTION SCRAPES SINCE 1976 BY OPPOSING NAFTA HE'S IN THE RARE POSITION OF PLEASING BOTH HIS CONSTITUENTS AND A LARGE MAJORITY OF HOUSE DEMOCRATS SOME OF HIS HOUSE COLLEAGUES HAVE BEEN A BIT UNNERVED AT SEEING THEIR TOP VOTECOUNTER SO FERVIDLY OPPOSING A CLINTON PRIORITY BUT SAYS REP PETE GEREN A PRONAFTA TEXAN I'VE BEEN SURPRISED HOW LITTLE NEGATIVE REACTION THERE'S BEEN THAT REFLECTS NOT ONLY MR BONIOR'S POPULARITY BUT THE POPULARITY OF HIS POSITION IF HE SIMILARLY PRESSED HIS ANTIABORTION VIEWS FOR EXAMPLE THE ABORTIONRIGHTS CAUCUS WOULD REBEL AS FOR MR BONIOR'S OBVIOUS LACK OF FEAR THAT THE WHITE HOUSE WILL EXACT RETRIBUTION THE HOUSE CONSENSUS IS THAT MR CLINTON NEEDS MR BONIOR MORE THAN MR BONIOR NEEDS HIM CONNECTICUT REP BARBARA KENNELLY AN ANTINAFTA ALLY EVEN SUGGESTS THAT REP BONIOR'S STAND COULD HELP IN A LEADERSHIP CONTEST IF ONE HAD ON ONE'S RESUME I BEAT THE WHITE HOUSE' THAT WOULD BE A FEATHER IN YOUR CAP SHE SAYS COMPARED WITH THE EMOTIONALISM OF MR BONIOR MR FAZIO REFLECTS THE COOL DETACHMENT OF MANY NAFTA ADVOCATES CERTAIN OF THE INTELLECTUAL BASIS OF THEIR FREETRADE STANCE IF WARY OF THE POLITICAL RISKS LIKE MR BONIOR MR FAZIO IS A SURVIVOR FIRST ELECTED IN 1978 HE SPENT NEARLY 2 MILLION LAST YEAR IN HIS GOPLEANING DISTRICT AND GOT 51 OF THE VOTE THERE'S SUPPORT FOR NAFTA IN AREA AGRICULTURE HIGHTECH AND AEROSPACE INDUSTRIES BUT OPPOSITION AMONG UNIONS IN SACRAMENTO CONSERVATIVES IN RURAL COUNTIES TO THE NORTH AND BACKERS OF ROSS PEROT THIS IS A VERY TOUGH VOTE FOR VIC SAYS REP ROBERT MATSUI A PRONAFTA LEADER FROM A DISTRICT NEXT DOOR MR FAZIO ARGUES THAT NAFTA WOULD BOOST EXPORTS AND THUS RESULT IN A NET JOB INCREASE FOR CALIFORNIA AND OVER TIME STEM IMMIGRATION BY LIFTING MEXICO'S ECONOMY BUT HE ADDS THE MOST COMPELLING ARGUMENT I'VE BEEN ABLE TO MAKE FOR CALIFORNIANS IS THIS IS AN OPPORTUNITY THE JAPANESE WILL TAKE IF WE DON'T HE DIDN'T GO PUBLIC UNTIL SEPTEMBER AND SINCE HAS BEEN A QUIET ADVOCATE TALKING TO WAVERERS WHEN ASKED AND ATTENDING STRATEGY SESSIONS THE WHITE HOUSE HAS BEEN EAGER TO TRUMPET HIS SUPPORT GIVEN THE RESPECT HE ENJOYS BUT MR FAZIO'S POSITION IS COMPLICATED BY HIS ROLE AS CHAIRMAN OF THE DEMOCRATIC CONGRESSIONAL CAMPAIGN COMMITTEE WHILE HIS STANCE PLEASES BUSINESS CONTRIBUTORS LABOR UNIONS ARE MAJOR CONTRIBUTORS OF MONEY AND MANPOWER TO THE PARTY HIS DELICATE BALANCING ACT IS EVIDENT IN THE COMMENTS OF JACK HENNING THE HEAD OF THE CALIFORNIA LABOR FEDERATION MR HENNING HAS SAID THAT PRONAFTA LAWMAKERS SHOULDN'T GET LABOR'S SUPPORT BUT WHEN ASKED ABOUT REP FAZIO HE RESPONDS HE'S A GREAT FELLOW IN THE FACE OF LABOR'S PRESSURE MR FAZIO'S NAFTA SUPPORT UNDERSCORES HIS APPEAL TO PARTY MODERATES WHO'VE BEEN TRYING TO PUSH THE PARTY TO THE CENTER OF COURSE THE AMIABLE MR FAZIO ALSO HAS GARNERED WIDESPREAD GOODWILL THROUGH THE CAMPAIGN AID HE'S FUNNELED TO DEMOCRATS AS WELL AS HIS WORK HEADING THE SUBMMITTEE THAT FUNDS CONGRESS'S OPERATIONS AND DEFENDS LAWMAKERS' PAY RAISES HE IS ALSO VICE CHAIRMAN OF THE DEMOCRATIC CAUCUS AND IS EXPECTED TO BE ELECTED CHAIRMAN AFTER NEXT YEAR ASSUMING HE'S REELECTED AT HOME GIVEN THE POLITICAL STRAINS HE FACES IN CALIFORNIA AS WELL AS IN WASHINGTON SOME COLLEAGUES WONDER THAT HE DIDN'T STAY UNCOMMITTED ON NAFTA AS SCORES OF EMBATTLED DEMOCRATS HAVE THE GUT POLITICS GO AGAINST NAFTA HE ACKNOWLEDGES BUT HE ADDS THE PARTY IS IN TRANSITION AND THIS IS ONE OF THOSE ISSUES THAT'S PULLING PEOPLE ALONG THE SPECTRUM 9311020187 931102 DIVIDEND NEWS JOHNSTON INDUSTRIES INC JOHNSTON INDUSTRIES INC NEW YORK SAID ITS BOARD APPROVED A 3FOR2 STOCK SPLIT PAYABLE JAN 24 1994 TO STOCK OF RECORD JAN 4 1994 THE ACTION IS SUBJECT TO SHAREHOLDER APPROVAL OF AN AMENDMENT DOUBLING THE NUMBER OF AUTHORIZED COMMON SHARES OF THIS HOMEFURNISHINGS AND INDUSTRIALTEXTILES PRODUCER TO 20 MILLION SHAREHOLDERS WILL VOTE ON THE CHANGE AT A SPECIAL MEETING DEC 20 9311020186 931102 WHO'S NEWS THOMSON CORP THOMSON CORP TORONTO KERRY G LAMBIE 54 YEARS OLD RETIRED AS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THOMSON NEWSPAPERS CORP A UNIT OF THOMSON CORP THE COMPANY DIDN'T NAME A SUCCESSOR AND A THOMSON NEWSPAPERS OFFICIAL SAID HE DIDN'T KNOW WHEN THE POSITION WILL BE FILLED 9311020185 931102 WHO'S NEWS CIGNA CORP CIGNA CORP PHILADELPHIA MARILYN W LEWIS 49 YEARS OLD WAS ELECTED A DIRECTOR OF THIS HEALTHCARE INSURANCE AND FINANCIAL SERVICES COMPANY INCREASING THE BOARD TO 15 MS LEWIS IS CHAIRMAN OF AMERICAN WATER WORKS CO AN OWNER OF WATER UTILITIES 9311020183 931102 INTERNATIONAL JAPAN BUILDER MURAMOTO FILES FOR BANKRUPTCY BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S ECONOMIC DOWNTURN CLAIMED ITS BIGGEST VICTIM TO DATE ON MONDAY WHEN CONTRACTOR MURAMOTO CONSTRUCTION CO ENTERED BANKRUPTCY PROCEEDINGS WITH 590 BILLION YEN 546 BILLION IN DEBTS UNTIL NOW THE LARGEST POSTWAR FAILURE IN JAPAN WAS SANKO STEAMSHIP CO WHICH STARTED BANKRUPTCY PROCEEDINGS IN 1985 WITH DEBTS TOTALING 520 BILLION YEN THE COLLAPSE OF MURAMOTO A MIDSIZE CONTRACTOR OFFERS YET ANOTHER EXAMPLE OF HOW FAR THE JAPANESE ECONOMY HAS PLUNGED SINCE THE HIGHFLYING DAYS OF THE LATE 1980S WHEN BUSINESSES AND INDIVIDUALS AMASSED TREMENDOUS WEALTH IN AN ORGY OF LAND AND STOCK SPECULATION A MURAMOTO SPOKESMAN SAID THE COMPANY'S TROUBLES WERE CAUSED MAINLY BY HEAVY EXPOSURE TO SPECULATIVE DEVELOPMENT PROJECTS PARTICULARLY GOLF COURSES WHEN THE GOVERNMENT BOOSTED INTEREST RATES IN THE EARLY 1990S AND THUS BROUGHT SOARING STOCK AND PROPERTY VALUES CRASHING DOWN COMPANIES SUCH AS MURAMOTO FOUND THEMSELVES DANGEROUSLY EXPOSED A SPOKESMAN FOR TEIKOKU DATABANK LTD A PRIVATE CREDIT RESEARCH AGENCY THAT MONITORS BUSINESS FAILURES SAID IT IS EXTREMELY UNLIKELY THAT MURAMOTO WILL EMERGE FROM BANKRUPTCY PROCEEDINGS THE CLOSELY HELD CONTRACTOR BASED IN THE SOUTHERN CITY OF NARA HAS ABOUT 2000 EMPLOYEES AND OPERATIONS THROUGHOUT THE COUNTRY ANALYSTS NOTE THAT BANKRUPTCIES APPEAR TO HAVE PEAKED LAST YEAR THE NUMBER OF BANKRUPTCIES OF ALL SORTS IN JAPAN FELL 06 TO 6913 CASES IN THE SIX MONTHS ENDED SEPT 30 ACCORDING TO TEIKOKU DATABANK STILL JAPAN'S CONSTRUCTION INDUSTRY HAS BEEN HIT LATELY BY A STEEP DROP IN PRIVATESECTOR ORDERS AND A RASH OF BRIBERY SCANDALS BY SOME ESTIMATES JAPAN HAS HALF A MILLION CONSTRUCTION FIRMS AND ANALYSTS SAY THE MARKET CAN'T SUPPORT ALL OF THEM WHAT'S MORE THE VERY FACT THAT REGULATORS AND MURAMOTO'S BANKERS ARE ALLOWING THE COMPANY TO GO UNDER SUGGESTS THAT THE RECESSION IS FORCING JAPAN TO RETHINK ITS OBSESSION WITH BUSINESS STABILITY AND JOB PROTECTION BANKS AND FINANCE OFFICIALS HAVE GONE TO GREAT LENGTHS TO STAVE OFF BANKRUPTCIES BECAUSE THEY UNDERMINE CONFIDENCE IN THE FINANCIAL SYSTEM MURAMOTO'S FAILURE IS THE LATEST BLOW TO A JAPANESE CONSTRUCTION INDUSTRY THAT IS REELING FROM A WIDENING CORRUPTION SCANDAL IN RECENT MONTHS PROSECUTORS HAVE ARRESTED SEVERAL POLITICIANS AND A STRING OF CONSTRUCTIONCOMPANY EXECUTIVES FOR THEIR ALLEGED ROLE IN A SERIES OF BRIBERY AND BIDRIGGING CASES 9311020182 931102 CREDIT RATINGS CREDIT DOWNGRADE OF POWER UTILITIES SEEN IN 3 YEARS BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK REFLECTING THE GLOOMY OUTLOOK FOR MANY ELECTRIC UTILITIES MOODY'S INVESTORS SERVICE SAID IT EXPECTS A DROP IN THE NEXT THREE YEARS IN ITS AVERAGE CREDIT RATINGS FOR THE INDUSTRY MOODY'S PREDICTED THAT ITS AVERAGE SENIORSECURED BOND RATINGS FOR THE 50 LARGEST US ELECTRIC COMPANIES WOULD FALL TO BAA1 FROM A3 THESE COMPANIES HAVE ABOUT 142 BILLION OF DEBT OUTSTANDING IN THE US AND INTERNATIONAL BOND MARKETS THE RATINGS AGENCY SAID THE STATEMENT BY MOODY'S WAS MADE IN ITS ANNUAL REPORT ON THE US ELECTRIC UTILITY INDUSTRY LAST WEEK STANDARD & POOR'S CORP PLACED FIVE UTILITIES UNDER REVIEW WITH NEGATIVE IMPLICATIONS LOWERED ITS OUTLOOK FOR ABOUT 40 COMPANIES AND TIGHTENED ITS DEBTRATINGS FORMULA FOR THE INDUSTRY CALLING IT A SECTOR IN LONGTERM DECLINE ONE REASON FOR THE GRIM OUTLOOK IS RISING PRESSURE TO PRODUCE ELECTRICITY MORE CHEAPLY HAVING RECENTLY LOST MANY OF THE PROTECTIONS THAT LONG ALLOWED THEM TO ACT AS MONOPOLIES UTILITIES FACE THE PROSPECT OF COMPETITION FROM RIVAL PROVIDERS UTILITIES THAT ARE BEST POSITIONED TO COMPETE THOSE WITH THE ABILITY TO TRANSMIT OUTSIDE THEIR REGION FOR INSTANCE STAND TO BE UPGRADED AS DEREGULATION UNFOLDS MOODY'S SAID BUT ALL UTILITIES WILL FACE UNPRECEDENTED DEMAND FOR LOWCOST POWER AND GOOD SERVICE RETAIL PRESSURES THAT WILL CAUSE ELECTRICITY TO BE SOLD AS A COMMODITY BASED ON PRICE RATHER THAN ON THE GEOGRAPHIC SERVICE TERRITORY MOODY'S SAID PARTICULARLY AT RISK FOR DOWNGRADING MOODY'S SAID WILL BE UTILITIES WITH UNECONOMICAL PLANT INVESTMENTS INCLUDING NUCLEAR FACILITIES THOSE WITH MAJOR INDUSTRIAL CUSTOMERS THAT MAY BE TARGETED BY RIVAL SUPPLIERS THOSE WITH LARGE ASSETS THAT MAY HAVE TO BE WRITTEN OFF AND UTILITIES WITH POOR TRANSMISSION TIES THAT COULD INHIBIT THEIR ABILITY TO SELL ELECTRICITY OUTSIDE THEIR SERVICE AREAS ALSO AT RISK UTILITIES IN THE NORTHEAST AND SOUTHWEST THAT HAVE EXCESS PRODUCTION CAPACITY BUT FACE LOW DEMAND BECAUSE OF PROJECTIONS OF SLOW REGIONAL ECONOMIC GROWTH IN COMING YEARS MOODY'S SAID UTILITIES IN THE NORTHWEST AND SOUTHEAST MAY FARE BETTER BECAUSE OF EXCESS CAPACITY AND STRONG DEMAND MOODY'S SAID WHILE THOSE IN THE MIDWEST FACE WEAK DEMAND AND SHORT SUPPLYFACTORS THAT THE RATINGS AGENCY SAID MAY BOOST THE POTENTIAL FOR MERGERS AND ACQUISITIONS AMONG COMPETITORS IN THAT REGION 9311020180 931102 WHO'S NEWS ROLLINS ENVIRONMENTAL SERVICES INC ROLLINS ENVIRONMENTAL SERVICES INC WILMINGTON DEL PATRICK J BAGLEY 46 YEARS OLD WAS ELECTED A DIRECTOR OF THIS COMMERCIAL INCINERATION AND CHEMICAL WASTETREATMENT AND DISPOSAL COMPANY INCREASING THE BOARD TO EIGHT MR BAGLEY IS VICE PRESIDENT FINANCE AND TREASURER OF ROLLINS TRUCK LEASING CORP AND VICE PRESIDENT FINANCE AND TREASURER OF MATLACK SYSTEMS INC A TRACTOR AND TRAILER OPERATOR 9311020179 931102 WHO'S NEWS HOMECARE MANAGEMENT INC HOMECARE MANAGEMENT INC RONKONKOMA NY ANDRE C DIMITRIADIS WAS ELECTED A DIRECTOR OF THIS PROVIDER OF DRUG THERAPIES AND RELATED SUPPORT SERVICES INCREASING THE BOARD TO SIX DR DIMITRIADIS IS CHIEF EXECUTIVE OFFICER AND CHAIRMAN OF LTC PROPERTIES INC A REAL ESTATE INVESTMENT TRUST 9311020177 931102 INTERNATIONAL SOUTH KOREAN AUTO MAKERS BUCK TREND OF CAR INDUSTRY BET ON BOOST IN CAPACITY BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA THE NATION'S AUTO MAKERS URGED ON BY THE GOVERNMENT ARE THUMBING THEIR NOSES AT THE WORLDWIDE INDUSTRY TREND AT A TIME WHEN AUTO MAKERS AROUND THE WORLD ARE CUTTING BACK THIS COUNTRY'S FIVE MAJOR CAR MANUFACTURERS ALL OF WHICH ARE PART OF HUGE BUSINESS GROUPS PLAN TO INVEST ABOUT 10 BILLION TO DOUBLE PRODUCTION CAPACITY BY 2001 IT'S A HIGHSTAKES GAMBLE MOST OF SOUTH KOREA'S AUTO MAKERS LOSE MONEY AND SOME ARE HEAVILY IN DEBT WHICH MAKES FUNDS FOR RESEARCH AND DEVELOPMENT SCARCE BY EXPANDING PLANT CAPACITY BEYOND DOMESTIC DEMAND GOVERNMENT AND INDUSTRY PLANNERS ARE BETTING SOUTH KOREA'S CAR MAKERS WILL BE ABLE TO RECOVER FROM A CURRENT DECLINE IN EXPORTS AND COMPETE WITH THE WORLD'S ESTABLISHED PRODUCERS WITHIN THE NEXT FIVE YEARS THEY ALSO ARE COUNTING ON A CONTINUED STRONG YEN WHICH GIVES SOUTH KOREAN CAR PRODUCERS AN EDGE AGAINST THEIR JAPANESE RIVALS I CANNOT UNDERSTAND WHY OTHER COMPANIES ARE INVESTING IN THIS INDUSTRY SAYS KIM JONG IL MANAGING DIRECTOR OF THE PLANNING DEPARTMENT FOR INDUSTRY LEADER HYUNDAI MOTOR CO THE PRODUCTION CAPACITY IS ALREADY FULL PRIVATELY SOME OFFICIALS FROM HYUNDAI'S RIVALS ACKNOWLEDGE THERE ISN'T ENOUGH DEMAND IN SOUTH KOREA TO SUSTAIN FIVE CAR MANUFACTURERS THE SOUTH KOREAN GOVERNMENT HAS A HISTORY OF MASSING THE COUNTRY'S PRIVATE AND PUBLIC RESOURCES IN CAPITALINTENSIVE INDUSTRIES WITH MIXED RESULTS LESS THAN FIVE YEARS AFTER POLICY PLANNERS FOCUSED ON SEMICONDUCTORS SOUTH KOREA IS ONE OF THE WORLD'S MOST COMPETITIVE PRODUCERS OF MEMORY CHIPS BUT ITS CONGLOMERATES ALSO CONTRIBUTED HEAVILY TO THE WORLDWIDE GLUT OF PETROCHEMICAL PRODUCTS AFTER THE GOVERNMENT ENCOURAGED THEM TO PILE INTO THE INDUSTRY IN THE MID1980S AS WITH PREVIOUS INDUSTRIAL POLICIES THE FOCUS ON AUTOMOBILES EMPHASIZES OUTPUT OVER QUALITY AND IS GEARED PRIMARILY TO UNDERCUT THE JAPANESE PLANNERS FORECAST DOMESTIC SALES WILL NEARLY DOUBLE IN VALUE AND EXPECT GROWTH IN EXPORTS TO TRIPLE THE GOVERNMENT MAY SOON HAVE TO DECIDE WHETHER THAT LEAVES ENOUGH ROOM FOR SAMSUNG GROUP SOUTH KOREA'S LARGEST CONGLOMERATE TO ENTER THE FRAY THE GROUP ALREADY HAS A LICENSE TO BUILD COMMERCIAL VEHICLES AND IS EXPECTED NEXT YEAR TO REQUEST PERMISSION TO PRODUCE PASSENGER CARS BY 1995 ALTHOUGH APPROVAL IS LIKELY GIVEN SAMSUNG'S POLITICAL CLOUT THE CONGLOMERATE APPEARS TO HAVE HEDGED AGAINST A REJECTION SAMSUNG AFFILIATES RECENTLY SECURED A LARGE EQUITY STAKE IN NO 2 AUTO MAKER KIA MOTORS CO IN WHAT APPEARED TO BE THE RUSTLINGS OF SOUTH KOREA'S FIRST HOSTILE TAKEOVER ATTEMPT THE GROUP BACKED AWAY AFTER KIA CALLED THE SUSPECTED BID UNETHICAL BUT ANALYSTS AREN'T RULING OUT A MERGER THE DEMAND FOR CARS IN SOUTH KOREA IS EXPECTED TO GROW ABOUT 10 ANNUALLY FOR THE NEXT SIX YEARS MAKING IT ONE OF THE WORLD'S FASTESTGROWING AUTO MARKETS EXPORTS HOWEVER HAVE YET TO RECOVER AFTER PEAKING BETWEEN 1986 AND 1988 WHEN THEY OUTSTRIPPED DOMESTIC SALES LAST YEAR EXPORTS ACCOUNTED FOR ONLY 27 OF TOTAL REVENUE THE DECLINE IN OVERSEAS SALES IS ATTRIBUTED TO UNFAVORABLE EXCHANGE RATES RISING LABOR COSTS AND THE ALLEGED POOR QUALITY OF SOUTH KOREAN AUTOMOBILES NOW HYUNDAI IS GEARING UP FOR ANOTHER CRACK AT THE US MARKET AFTER INVESTING HEAVILY IN NEW DESIGNS QUALITY CONTROL AND AFTERSALES SERVICE SIMILARLY KIA IS NUDGING ITS WAY INTO THE US THE WORLD'S LARGEST AUTO MARKET INITIALLY BY PITCHING ITS NEW LINE OF COMPACT AND SUBCOMPACT CARS TO RENTAL AGENCIES DAEWOO MOTOR CO AN AFFILIATE OF THE GIANT DAEWOO CONGLOMERATE AND SOUTH KOREA'S NO 3 CAR MANUFACTURER HAS DIFFERENT PLANS ALTHOUGH DAEWOO HAS SHAKEN A REPUTATION FOR SHABBY WORKMANSHIP AND HAS RECOVERED FROM A FAILED JOINT VENTURE WITH GENERAL MOTORS CO THE QUALITY OF ITS CARS STILL FALLS SHORT OF THE STANDARDS DEMANDED BY CONSUMERS IN MATURE MARKETS SO DAEWOO IS FOCUSING ON THE DEVELOPING WORLD IN THE LAST YEAR IT HAS ENTERED INTO STATEFINANCED JOINT VENTURES TO BUILD AND SELL AUTOMOBILES IN ASIA LATIN AMERICA AND EASTERN EUROPE WHERE PRICE IS MORE IMPORTANT THAN QUALITY SOUTH KOREA'S STRATEGY ASSUMES THAT THE WON WHICH HAS DEPRECIATED ABOUT 18 AGAINST THE YEN SINCE JANUARY WILL CONTINUE TO GIVE SOUTH KOREAN CARS A PRICE ADVANTAGE ACCORDING TO THE KOREA AUTO INDUSTRY ASSOCIATION THE AVERAGE UNIT PRICE OF JAPANESE CARS SOLD ABROAD INCREASED 73 IN THE YEAR ENDING JUNE WHILE THE PRICE OF SOUTH KOREAN EXPORTS ROSE ONLY 13 YET SUCH AN ADVANTAGE IS TEMPORARY GIVEN THE SPEED WITH WHICH JAPAN IS RELOCATING ITS PRODUCTION FACILITIES TO SOUTHEAST ASIA BY 1996 MANY CAR ANALYSTS PREDICT MOST OF JAPAN'S AUTO MAKERS WILL HAVE REDUCED THEIR FOREIGNEXCHANGE RISK SUBSTANTIALLY BY DIVERSIFYING THEIR MANUFACTURING BASE TO DEVELOPING COUNTRIES ONE PROBLEM IS KOREA'S WEAK ENGINEERING POOL SAYS DAVID BLOOM MANAGER OF THE SOUTH KOREAN ARM OF UKBASED HAWTAL WHITING LTD WHICH DESIGNS AND BUILDS VEHICLES AND AUTO PARTS FOR THE WORLD'S TOP MANUFACTURERS SOUTH KOREAN COMPANIES ARE FOCUSING ON THE PROBLEM DAEWOO FOR EXAMPLE HAS INVESTED 8 BILLION WON 99 MILLION IN UPGRADING AND HARMONIZING ITS SUPPLIER NETWORK SUCH INVESTMENT IS ENCOURAGING SAY ANALYSTS BUT REPRESENTS A FRACTION OF WHAT IS NEEDED FOR SOUTH KOREAN COMPANIES TO PRODUCE WORLDCLASS CARS RATHER THAN INVESTING IN CAPACITY THEY SHOULD INVEST IN RESEARCH AND DEVELOPMENT SAYS DON LEE AN ANALYST WITH BARCLAYS DE ZOETE WEDD BY 1995 IF KOREA IS STILL UTILIZING A STRATEGY OF PRICE ADVANTAGE IT WON'T WORK SOUTH KOREAN CAR COMPANIES ARE COUNTING ON MOREESTABLISHED CAR MANUFACTURERS FOR TECHNOLOGY THAT WOULD TAKE THEM YEARS TO GENERATE ON THEIR OWN LAST YEAR DAEWOO ANNOUNCED AN AGREEMENT WITH HONDA MOTOR CO OF JAPAN WITH WHICH IT WILL SOON PRODUCE THE HONDA LEGEND SSANGYONG MOTOR CO PLANS TO DEVELOP ITS FIRST PASSENGER CAR THROUGH A RECENT TIEUP WITH MERCEDESBENZ AG BUT SOME INDUSTRY OFFICIALS SAY FOREIGNCAR MANUFACTURERS ARE UNLIKELY TO IMPART THE KIND OF SOPHISTICATED TECHNOLOGY THAT SOUTH KOREAN PARTNERS WANT THE ADVANCED FOREIGNCAR MAKERS DO NOT WANT TO SHARE THEIR TECHNOLOGY WITH DEVELOPING COUNTRIES SAYS HYUNDAI'S MR KIM HYUNDAI OR KIA WILL ACHIEVE TECHNOLOGICAL INDEPENDENCE FROM ADVANCED MAKERS THE REMAINDER WILL NOT 9311020176 931102 SMALL STOCK FOCUS STOCKS GAIN DESPITE WEAKNESS IN BONDS AND DISAPPOINTING EARNINGS FORECASTS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS EKED OUT FURTHER GAINS EXTENDING LAST WEEK'S POWERFUL RALLY BUT PRICE GAINS MIGHT HAVE BEEN GREATER YESTERDAY TRADERS AND ANALYSTS SAID IF IT WEREN'T FOR WEAKER BOND PRICES AND SOME DISAPPOINTING EARNINGS FORECASTS THE RUSSELL 2000 INDEX WHICH MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND ON THE NEW YORK AND AMERICAN STOCK EXCHANGES EDGED UP 032 POINT OR 012 TO 25950 JUST SHY OF ITS PREVIOUS HIGH OF 25998 EVERYBODY IS CASTING A CAUTIOUS EYE ON THE BOND MARKET WHICH IS BEHAVING BADLY AND GIVING PEOPLE REASON TO PAUSE BUT NOT STOP SAID WILLIAM ROTHE HEAD OF NASDAQ TRADING FOR ALEX BROWN & SONS PEOPLE ALSO ARE STILL REACTING TO EARNINGS HE SAID INDEED DISAPPOINTING EARNINGS NEWS CONTINUED TO DOG CERTAIN STOCKS KENDALL SQUARE RESEARCH CORP WHICH TOPPLED 7 7/8 OR 33 ON FRIDAY ON AN ANNOUNCEMENT THAT IT WOULD REPORT A LOSS IN ITS THIRD QUARTER ENDED SEPT 25 FELL A FURTHER 7/8 OR 53 TO 15 1/2 ON A REPORT IN THIS NEWSPAPER YESTERDAY THAT THE COMPANY'S PRESIDENT SOLD SHARES IN LATE AUGUST VALUED AT 1 MILLION THE INSIDER STOCK SALES BY HENRY BURKHARDT PRESIDENT CHIEF EXECUTIVE OFFICER AND A FOUNDER OF THE COMPANY CAME SOON AFTER THE EXECUTIVE HAD FORECAST A STRONG FISCAL THIRD QUARTER WHICH THE COMPANY NOW SAYS ENDED WITH A LOSS MR BURKHARDT'S SALES WERE CITED IN A LAWSUIT FILED LATE FRIDAY IN A FEDERAL COURT IN BOSTON THE WALL STREET JOURNAL REPORTED THE COMPLAINT FILED BY THREE SHAREHOLDERS ALLEGES THAT KENDALL SQUARE OF WALTHAM MASS DIDN'T FOLLOW ACCOUNTING RULES AND THAT ITS OFFICERS AND DIRECTORS MADE REPEATED FALSE AND MISLEADING STATEMENTS OFFICIALS AT THE COMPANY WHICH MANUFACTURES HIGHPERFORMANCE PARALLEL COMPUTER SYSTEMS HAVE NOT RESPONDED TO THE SUIT WE'VE HAD A HOLD RATING ON THE STOCK SINCE THE FIRST WEEK OF SEPTEMBER SAID JEFFREY CANIN AN ANALYST WITH SALOMON BROTHERS IN LINE WITH THE DISAPPOINTING NEWS ON EARNINGS LAST WEEK WE HAVE NOT CHANGED OUR RATING WE'RE NOT SAYING IT'S A BUY' ON WEAKNESS THE COMPANY RECENTLY HAS BEEN CRITICIZED BY SOME ANALYSTS FOR AGGRESSIVE SALESACCOUNTING POLICIES AND FOR CARRYING A HIGH LEVEL OF RECEIVABLES EVEN BEFORE THE THIRD QUARTER THERE HAD BEEN SOME CONCERN ABOUT THE COMPANY'S QUITE HIGH RECEIVABLE LEVELS SAID MR CANIN RESPIRONICS INC SKIDDED 1 1/4 OR 64 TO 18 1/4 INVESTORS PUMMELED THE STOCK AFTER THE MURRYSVILLE PA COMPANY REPORTED THAT IT HAS DISCONTINUED PRODUCTION AND SALES OF ITS BAGEASY LINE OF DISPOSABLE MANUAL RESUSCITATORS AND THAT IT IS VOLUNTARILY RECALLING ALL BAGEASY PRODUCTS CURRENTLY IN DISTRIBUTION CHANNELS AND CUSTOMER INVENTORY THE COMPANY SAID IT WILL TAKE A FIRSTQUARTER CHARGE OF ABOUT 2 MILLION OR 15 CENTS A SHARE FOR THE FISCAL FIRST QUARTER ENDED SEPT 30 WITH THE CHARGE THE COMPANY SAID IT EXPECTS TO POST FIRSTQUARTER EARNINGS OF NINE CENTS TO 11 CENTS A SHARE DOWN FROM 18 CENTS A SHARE IN THE YEARAGO PERIOD POSITIVE EARNINGS FORECASTS HELPED LIFT THE STOCK OF PEOPLES HERITAGE FINANCIAL GROUP THE FINANCIAL HOLDING COMPANY IN PORTLAND MAINE GAINED 1/2 OR 43 TO 12 ON MORE THAN DOUBLE ITS NORMAL VOLUME AFTER REPORTING THAT IT EXPECTS TO SEE 1993 EARNINGS OF 70 CENTS A SHARE COMPARED WITH A LOSS OF 58 CENTS A SHARE A YEAR AGO THE FORECAST WAS 8 HIGHER THAN WALL STREET ANALYSTS' EXPECTATIONS OF 65 CENTS A SHARE ZOOM TELEPHONICS INC GAINED 1 OR 98 TO 11 1/4 ON NEARLY DOUBLE ITS AVERAGE VOLUME ON FRIDAY'S REPORT OF STRONGER THAN EXPECTED THIRDQUARTER EARNINGS THE BOSTON COMPANY WHICH MANUFACTURES MODEMS REPORTED NET EARNINGS OF SIX CENTS A SHARE EXCEEDING ANALYSTS' ESTIMATES OF ONE TO FIVE CENTS A SHARE MERGER AND ACQUISITION FEVER WAS BEHIND MOVES IN A NUMBER OF SMALL STOCKS TRADERS AND ANALYSTS SAID ZAPATA CORP A NATURALGAS GATHERING AND COMPRESSION EQUIPMENT COMPANY IN HOUSTON WITH ACTIVITIES IN EXPLORATION AND IN FISHING SAW HUGE VOLUME IN ITS STOCK BUT ENDED THE DAY UNCHANGED AT 1 3/8 ON THE NEW YORK STOCK EXCHANGE THE STOCK HAD BEEN AS HIGH AS 1 1/2 THE MARKET HAS TRADED AROUND SEVEN MILLION SHARES IN THE COMPANY IN THE PAST TWO TRADING DAYS SAID GEORGE GASPAR AN ANALYST WITH ROBERT W BAIRD & COMPANY INC IN MILWAUKEE THAT'S CLOSE TO 5 OF THE OUTSTANDING STOCK ZAPATA ANNOUNCED LAST MONTH THAT IT WOULD SELL 41 MILLION SHARES OF TIDEWATER INC NYSE A MARINESERVICE COMPANY IN NEW ORLEANS THOSE SHARES HAD BEEN ACQUIRED THROUGH A MERGER OF ZAPATA GULF MARINE WITH TIDEWATER LAST YEAR TRADERS AND ANALYSTS SAID THAT ZAPATA ARMED WITH THE PROCEEDS OF AN EARLIER SALE OF A TRANCHE OF TIDEWATER SHARES AND SOONTOBE FLUSH WITH THE PROCEEDS OF THE COMING SALE IS ON THE PROWL FOR ACQUISITIONS IN THE GASGATHERING AND COMPRESSIONEQUIPMENT AREAS THIS COMPANY IS BASICALLY PUTTING ITSELF BACK ON TRACK AFTER HAVING SUBSTANTIAL LOSSES FROM ITS OFFSHORE CONTRACTDRILLING BUSINESS WHICH HAS BEEN SOLD SAID MR GASPAR HE ADDED THAT THE COMPANY HAS AN OPPORTUNITY TO DEMONSTRATE GOOD EARNINGS AND CASHFLOW GROWTH AND I WOULD EXPECT THAT THE COMPANY WILL SEEK APPROVAL TO REVERSE SPLIT ITS STOCK AT ITS UPCOMING ANNUAL MEETING FOR FISCAL YEAR ENDED SEPT 30 PROTEIN DESIGN LABS INC JUMPED ANOTHER 1 5/8 TO 22 5/8 AFTER A FIVEPOINT SPURT ON FRIDAY THE COMPUTERBASED DESIGNER OF ANTIBODIES IN MOUNTAIN VIEW CALIF CONTINUES TO CLIMB FOLLOWING NEWS ON FRIDAY THAT CORANGE LTD WILL BUY UP TO 75 MILLION IN PROTEIN'S COMMON STOCK ALSO MERRILL LYNCH UPGRADED THE STOCK TO A NEARTERM BUY FROM ABOVE AVERAGE CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE PEOPLES HERITAGE FINANCIAL GROUP SAID IT EXPECTS 1993 EARNINGS OF 87 CENTS A SHARE IN YESTERDAY'S SMALL STOCK FOCUS COLUMN THE COMPANY'S ESTIMATE WAS INCORRECTLY REPORTED AS 70 CENTS A SHARE 9311020175 931102 WHO'S NEWS AMERICAN ANNUITY GROUP INC AMERICAN ANNUITY GROUP INC CINCINNATI ROBERT A ADAMS 47 YEARS OLD WAS NAMED A DIRECTOR INCREASING THE BOARD'S SIZE TO EIGHT MEMBERS MR ADAMS IS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMPANY WHICH THROUGH ITS GREAT AMERICAN LIFE INSURANCE CO UNIT SELLS TAXDEFERRED ANNUITIES TO TEACHERS AND OTHER EMPLOYEES OF NONPROFIT INSTITUTIONS 9311020174 931102 TECHNOLOGY & HEALTH NEC MAY LOSE MARKET SHARE TO US PC RIVALS BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO NEC CORP THE KING OF THE JAPANESE PERSONALCOMPUTER BUSINESS FACES A SUBSTANTIAL LOSS OF MARKET SHARE BECAUSE OF AN INVASION OF US FIRMS SELLING IBMSTYLE PCS AN INFLUENTIAL MARKETRESEARCH FIRM SAID OF THOSE US COMPANIES HOWEVER ONLY INTERNATIONAL BUSINESS MACHINES CORP IS LIKELY TO GAIN MUCH MARKET SHARE OVER THE NEXT THREE YEARS LEAVING AGGRESSIVE RIVALS COMPAQ COMPUTER CORP AND DELL COMPUTER CORP IN THE DUST THE JAPAN UNIT OF INTERNATIONAL DATA CORP SAID SINCE LATE LAST YEAR THE THREE US FIRMS HAVE WAGED A SPIRITED WAR WITH NEC WHOSE JAPANESELANGUAGE PCS AREN'T COMPATIBLE WITH IBM'S DE FACTO WORLD STANDARD THE AMERICANS HAVE RACKED UP SOME MAJOR SUCCESSES OVER THE COURSE OF A YEAR THEY HAVE FORCED DOWN AVERAGE PC PRICES IN JAPAN MORE THAN 50 THEY'VE ALSO ATTRACTED ALL MAJOR JAPANESE PC MAKERS BUT NEC AND ITS SINGLE CLONE MAKER SEIKO EPSON CORP TO THE IBM STANDARD LARGELY AS A RESULT IDC PREDICTS THAT NEC'S JAPANESE MARKET SHARE IN UNIT TERMS WILL FALL TO 40 IN 1995 FROM 52 IN 1992 IN EFFECT THE FORECAST SUGGESTS THAT NEC SIMPLY WILL BE UNABLE TO KEEP UP WITH ITS RIVALS SINCE THE MARKETRESEARCH FIRM EXPECTS THE OVERALL MARKET TO EXPAND 55 FROM 1992 TO 1995 IDC EXPECTS NEC'S MOST SUCCESSFUL CHALLENGERS TO BE COMPANIES WITH STRONG SALES AND DISTRIBUTION CHANNELS FACTORS THAT FAVOR APPLE COMPUTER INC IBM AND FUJITSU LTD IDC PREDICTS THAT THEY WILL HOLD 36 OF THE JAPANESE MARKET IN 1995 UP FROM 25 IN 1992 IBM'S SHARE WILL GROW TO 12 FROM 8 OVER THAT PERIOD IDC SAID COMPAQ AND DELL BY CONTRAST COME IN NEAR THE BOTTOM OF IDC'S FORECAST WITH RESPECTIVE 1995 MARKET SHARES OF 21 AND 15 COMPAQ NEEDS TO REORIENT ITS SALES STRATEGY TOWARD CORPORATE USERS INSTEAD OF RETAIL CUSTOMERS WHILE DELL FACES DIFFICULTY TRYING TO SELL PCS BY MAIL ORDER IN A COUNTRY THAT'S STILL NOT COMFORTABLE WITH THE CONCEPT SAID IDC ANALYST TAKAHIKO UMEYAMA IDC'S PESSIMISTIC OUTLOOK FOR NEC ISN'T UNIVERSALLY SHARED EARLIER THIS YEAR A DATAQUEST INC FORECAST SUGGESTED THAT NEC WILL MANAGE TO HOLD ONTO MUCH OF ITS MARKET SHARE THROUGH 1997 9311020173 931102 TENNECO'S WALSH GETS GOOD NEWS FROM HIS DOCTORS BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON MICHAEL WALSH CHAIRMAN OF TENNECO INC SAID HIS DOCTORS TOLD HIM THAT THE LIFETHREATENING BRAIN TUMOR THEY DISCOVERED EARLY THIS YEAR HAD STOPPED GROWING AND WAS BEGINNING TO BREAK UP AFTER A SERIES OF TESTS THE PHYSICIANS OF THE 51YEAROLD EXECUTIVE KNOWN FOR HIS CORPORATE TURNAROUND SKILLS COSTCUTTING AND LONG DEMANDING WORK DAYS CONCLUDED THAT THERE WASN'T ANY REASON TO BELIEVE THAT HE FACED ANYTHING OTHER THAN A NORMAL LIFE SPAN OBVIOUSLY MY FAMILY AND I COULD NOT BE MORE DELIGHTED MR WALSH SAID IN A STATEMENT THANK GOD FOR MODERN MEDICINE WHEN MR WALSH DISCLOSED THAT HE HAD BRAIN CANCER LAST JANUARY HIS DOCTORS ADVISED HIM THAT THE MEDIAN SURVIVAL RATE FOR HIS CONDITION IS FIVE TO SIX YEARS WITH HALF DOING BETTER THAN THAT AND SOME MUCH BETTER MR WALSH CONTINUED HIS REGULAR DUTIES AT TENNECO A 13 BILLION CONGLOMERATE THAT HE HAS ATTEMPTED TO VASTLY RESTRUCTURE WHILE UNDERGOING TREATMENTS OF RADIATION AND CHEMOTHERAPY SINCE JOINING TENNECO IN LATE 1991 MR WALSH HAS BEEN A DARLING OF INVESTORS WHO APPLAUDED THE IMPROVEMENT IN HIS HEALTH CLEARLY TENNECO NEEDS HIM SAID RONALD BARONE AN ANALYST AT KIDDER PEABODY & CO JOHN MCGINTY OF CS FIRST BOSTON INC SAID IT'S GOOD NEWS FOR TENNECO BUT THE IMPACT ON THE COMPANY IS OVERWHELMED BY THE IMPORTANCE IT HOLDS FOR MIKE SIGNS OF A TURNAROUND AT TENNECO BECAME EVIDENT LAST MONTH WHEN THE COMPANY REPORTED THAT THIRDQUARTER NET INCOME MORE THAN DOUBLED TO 114 MILLION OR 63 CENTS A SHARE FROM 46 MILLION OR 28 CENTS A SHARE A YEAR EARLIER THE RESULTS EXCEEDED MANY WALL STREET ESTIMATES MOST SURPRISING WAS THAT THE LONGTROUBLED CASE CORP AGRICULTURAL AND CONSTRUCTION EQUIPMENT UNIT POSTED A PROFIT BEFORE MR WALSH DISCLOSED THE NEWS FROM HIS DOCTORS YESTERDAY TENNECO SHARES WERE OFF 625 CENTS ON THE NEW YORK STOCK EXCHANGE AND AFTERWARD INVESTORS DIDN'T HAVE MUCH TIME TO REACT AT THE CLOSE OF BIG BOARD COMPOSITE TRADING TENNECO ENDED AT 50375 DOWN 625 CENTS MR WALSH WILL CONTINUE TO RECEIVE A FULL REGIMEN OF CHEMOTHERAPY THROUGH NEXT SPRING IN A TREATMENT INTENDED TO PREVENT A RECURRENCE OF THE TUMOR 9311020172 931102 TPI ENTERPRISES SUES MCCAW OVER SALES OF CELLULAR PROPERTIES WEST PALM BEACH FLA TPI ENTERPRISES INC AND ITS MAXCELL TELECOM PLUS INC UNIT FILED A LAWSUIT AGAINST MCCAW CELLULAR COMMUNICATIONS INC AMONG OTHERS SEEKING DAMAGES RELATED TO TPI'S SALE OF SOME CELLULAR TELEPHONE INTERESTS THE LAWSUIT FILED IN THE FEDERAL CIRCUIT COURT IN PALM BEACH COUNTY FLA ALLEGES THAT MCCAW AND CHARISMA COMMUNICATIONS A FORMER PARTNER OF MAXCELL FAILED TO DISCLOSE A SECRET AGREEMENT TO SHARE PROFITS FROM THE RESALE OF CELLULAR PROPERTIES THE PROFITSHARING PACT IS THOUGHT TO BE VALUED AT MORE THAN 250 MILLION TPI SAID TPI ALLEGES THAT THE SECRET DEAL WASN'T REVEALED IN THE 1986 NEGOTIATIONS BETWEEN THE MAXCELLCHARISMA PARTNERSHIP AND MCCAW WHICH BOUGHT OUT THE PARTNERSHIP AND THE RIGHTS TO PUT CELLULAR SYSTEMS IN VARIOUS US MARKETS MAXCELL WOULD NEVER HAVE JOINED IN THE SALE WITH CHARISMA TO MCCAW HAD THE SECRET PROFITSHARING DEAL BEEN REVEALED SAID STEPHEN R COHEN TPI CHAIRMAN MCCAW CELLULAR BASED IN KIRKLAND WASH SAID THE LAWSUIT IS WITHOUT MERIT TPI A WEST PALM BEACH FLA OPERATOR OF RESTAURANTS SEEKS THE RESCISSION OF ITS CELLULAR PROPERTY SALE TO MCCAW OR OTHER REMEDIES SUCH AS A SHARE OF THE PROFIT FROM THE RESALE OF THE PROPERTIES BESIDES MCCAW TPI NAMED FORMER STOCKHOLDERS OF CHARISMA COMMUNICATIONS A DELAWARE CORPORATION THAT OPERATED IN FLORIDA CHARISMA WAS DISSOLVED SHORTLY AFTER THE PARTNERSHIP'S SALE TO MCCAW ACCORDING TO THE COURT DOCUMENTS 9311020171 931102 TECHNOLOGY & HEALTH XEROX UNVEILS SILVERLESS GRAPHICS FILM POSING A THREAT TO KODAK STRONGHOLD BY JOAN E RIGDON AND JEFFREY A TANNENBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL XEROX CORP IN A MOVE THAT COULD THREATEN EASTMAN KODAK CO'S DOMINANCE OF THE 18 BILLION GRAPHICARTS FILM MARKET INTRODUCED A NEW VERSION OF THE FILM THAT IT SAYS IS CHEAPER TO USE AND EASIER ON THE ENVIRONMENT VERDEFILM UNVEILED YESTERDAY AT THE GRAPHIC EXPO TRADE SHOW IN CHICAGO IS BASED ON SELENIUM WHICH CAN FORM IMAGES WHEN EXPOSED TO HEAT AND LIGHT THAT DRY PROCESS IS CONSIDERED SAFER FOR THE ENVIRONMENT THAN TRADITIONAL SILVERHALIDE FILM WHICH REQUIRES CHEMICALS TO PROCESS GRAPHICARTS FILM IS USED TO MAKE PRINTING PLATES FOR MAGAZINES NEWSPAPERS AND CATALOGS AND OTHER HIGHVOLUME MULTICOLOR PRINTED MATERIAL THE NEWS SENT SILVER PRICES DOWN 142 CENTS TO 4225 AN OUNCE FOR THE DECEMBER CONTRACT ON NEW YORK'S COMMODITY EXCHANGE TRADERS WERE BETTING THAT XEROX'S SILVERLESS FILM PROCESS WOULD CUT DEMAND FOR SILVER IN PHOTOGRAPHIC USES BUT XEROX'S DEVELOPMENT AFFECTS ONLY GRAPHICARTS FILM WHICH MAKES UP ABOUT ONEFIFTEENTH OF THE TOTAL PHOTO MARKET SAID PRUDENTIAL SECURITIES ANALYST B ALEX HENDERSON BESIDES IT'S VERY VERY PREMATURE TO ASSESS HOW SUCCESSFUL VERDEFILM WILL BE SAID EUGENE GLAZER ANALYST AT DEAN WITTER REYNOLDS XEROX SAID IT PLANS TO MARKET THE NEW FILM WITH HELP FROM SEVERAL COMPANIES INCLUDING GRAPHICARTS EQUIPMENT MAKER MINNESOTA MINING & MANUFACTURING CO OF ST PAUL MINN AND ONE MAJOR GRAPHICARTS FILM MANUFACTURER THE AGFA UNIT OF BAYER AG THAT WOULD PIT XEROX AND AGFA AGAINST THE TWO BIGGEST PLAYERS IN THE GRAPHICARTS FILM MARKET KODAK AND DUPONT CO FUJI PHOTO FILM CO OF TOKYO IS A SMALL PLAYER IN THE MARKET THE NEWS IS A SLIGHT NEGATIVE FOR KODAK ROCHESTER NY WHICH HAS ABOUT 55 OF THE GRAPHICARTS FILM MARKET MR HENDERSON SAID GRAPHICARTS FILM ACCOUNTS FOR ONLY 4 OF KODAK'S ANNUAL SALES BUT VERDEFILM COULD BE A BIG BLOW FOR POLAROID CORP THE CAMBRIDGE MASS COMPANY HAS BEEN TELLING ANALYSTS THAT IT WILL EVENTUALLY ROLL OUT A VERSION OF ITS HELIOS LASER IMAGING SYSTEM WHICH PRODUCES TRANSPARENCIES FROM ULTRASOUND SCANNERS AND OTHER MEDICAL DIAGNOSTIC DEVICES FOR THE GRAPHICARTS FILM MARKET AS A DRYCHEMISTRY ALTERNATIVE TO SILVERHALIDE FILM NOW VERDEFILM SCHEDULED FOR CONSUMER TESTING NEXT APRIL WILL BEAT HELIOS TO MARKET THAT'S A PROBLEM FOR POLAROID MR HENDERSON SAID SOME INDUSTRY WATCHERS SAY THAT EVENTUALLY IT WON'T MATTER WHO WINS THE BATTLE FOR THIS MARKET NICHE BECAUSE THE INDUSTRY IS MOVING TOWARD AN ALLELECTRONIC PROCESS THAT CAN TRANSFER IMAGES DIRECTLY FROM COMPUTERS TO PRINTING PLATES WITHOUT THE USE OF FILM CURRENTLY THIS DIRECT TO PLATE TECHNOLOGY SOLD BY KODAK 3M AND OTHERS IS ONLY GOOD FOR SHORT RUNS OF 20000 COPIES OR LESS BUT WITHIN 20 YEARS I HAVE NO DOUBT IT WILL COMPLETELY REPLACE THE NEED FOR GRAPHICARTS FILM SAYS BARRY MAZOR EDITOR OF ADVANCED IMAGING A MELVILLE NY MAGAZINE INDUSTRY EXPERTS SAID VERDEFILM ISN'T LIKELY TO REPLACE SILVERHALIDE CONSUMER FILM BECAUSE IT REQUIRES MUCH STRONGER LIGHT TO WORK ALSO THE IMAGESETTING EQUIPMENT NEEDED TO ACTIVATE THE FILM IS TOO BULKY TO USE IN HANDHELD CONSUMER CAMERAS THE INTRODUCTION OF VERDEFILM SHOWS HOW XEROX BASED IN STAMFORD CONN IS ATTEMPTING TO LEVERAGE ITS CORE TECHNOLOGIES BY FINDING APPLICATIONS IN NEW MARKETS THE ELEMENT SELENIUM WHOSE ELECTRICAL CONDUCTIVITY VARIES WITH THE INTENSITY OF LIGHT IS USED IN THE IMAGING DRUMS OF PHOTOCOPIERS XEROX'S PRINCIPAL PRODUCT IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY XEROX SHARES WERE QUOTED AT 80 UP 75 CENTS KODAK SHARES WERE DOWN 1125 AT 6175 9311020170 931102 BUSINESS BRIEF COORS NET FELL 59 FOR THE 3RD QUARTER BEERPRICE WAR CITED GOLDEN COLO ADOLPH COORS CO REPORTED THIRDQUARTER PROFIT FELL 59 TO 96 MILLION OR 25 CENTS A SHARE FROM 234 MILLION OR 62 CENTS A SHARE THE YEAR EARLIER THE BREWING COMPANY SAID NET INCOME WAS HURT BY A CONTINUING BEERPRICE WAR AND INCREASED MARKETING COSTS SALES INCREASED 36 TO 5356 MILLION FROM 517 MILLION AS VOLUME OF BEER SOLD INCREASED ABOUT 32 IN ADDITION THE COMPANY SAID FOURTHQUARTER RESULTS WILL REFLECT A PRETAX CHARGE OF 65 MILLION TO 75 MILLION FOR PREVIOUSLY REPORTED PLANS TO REDUCE WHITECOLLAR STAFF BY 500 AT THE BREWERY OTHER CHARGES FOR COSTS ASSOCIATED WITH IMPROVING EFFICIENCIES WILL MATERIALLY ADD TO THE FOURTHQUARTER CHARGE THE COMPANY SAID BUT ADDED THAT THE FINAL AMOUNT HASN'T BEEN CALCULATED YET COORS SAID IT EXPECTED FURTHER PRICE PRESSURES IN THE FOURTH QUARTER AND A REDUCTION IN SALES FROM THE YEAR EARLIER DUE TO AN ANTICIPATED DROP IN INVENTORIES BY ITS DISTRIBUTORS BUT MARKETING COSTS WHICH WERE BOOSTED 23 IN THE THIRD QUARTER BY A 40MARKET ROLLOUT OF COORS'S CLEAR MALT BEVERAGE ZIMA WILL MODERATE IN THE FOURTH QUARTER THE COMPANY SAID FOR THE NINE MONTHS NET ROSE TO 331 MILLION OR 87 CENTS A SHARE FROM 207 MILLION OR 77 CENTS A SHARE SALES ROSE 27 TO 124 BILLION FROM 121 BILLION PROFIT FROM CONTINUING OPERATIONS IN THE YEARAGO NINE MONTHS WAS 392 MILLION OR 104 A SHARE IN 1992 RESULTS FROM ACX TECHNOLOGIES INC WERE REPORTED AS DISCONTINUED OPERATIONS ACX WAS SPUN OFF BY COORS AT THE END OF 1992 9311020169 931102 MARKETING & MEDIA TOP CEREAL MAKERS DIVERGE ON PRICING AND PROMOTIONS BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL KRAFT GENERAL FOODS IS MAKING ITS CEREAL COMEBACK JUST AS THE INDUSTRY'S BIGGEST PLAYERS ARE DIVERGING ON TWO KEY MARKETING ISSUES PRICING AND PROMOTION THAT BECAME APPARENT IN AUGUST WHEN KELLOGG CO RAISED ITS PRICES AN AVERAGE 21 IN THE PAST AN INCREASE BY ONE CEREAL MAKER WOULD QUICKLY BE COPIED BY THE OTHERS BUT THIS TIME ONLY KRAFT'S POST BRANDS FOLLOWED KELLOGG QUAKER OATS CO WITH A 72 SHARE AND RALSTON PURINA CO WHOSE BRANDS HOLD ABOUT A 47 SHARE JOINED GENERAL MILLS INC IN DECIDING NOT TO BOOST PRICES FOR GENERAL MILLS CEREALPROMOTION ECONOMICS HAD GOTTEN OUT OF WHACK TYPICALLY A BARRAGE OF COUPONING AND OTHER INCENTIVES ACCOMPANY PRICE INCREASES TO SOFTEN THEIR IMPACT ON CONSUMERS BUT THE IDEA OF INCREASING PRICES TO FUND RICHER AND RICHER COUPONING AND PROMOTION ISN'T SOMETHING WE BELIEVE MAKES SENSE SAYS STEPHEN W SANGER GENERAL MILLS'S NEWLY NAMED PRESIDENT SO GENERAL MILLS OPTED TO HOLD THE LINE ON PRICES FOR NOW KELLOGG'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ARNOLD G LANGBO NOTING THE INDUSTRY TREND OF PRICE INCREASES ABOUT EVERY EIGHT MONTHS SAYS HIS COMPANY CONTINUED THAT PRACTICE IN AUGUST TO COVER RISING COSTS AND TO IMPROVE OPERATING MARGINS WE THOUGHT THERE WAS SOME UPWARD FLEXIBILITY IN PRICING HE SAYS WE STILL BELIEVE THAT THERE ARE INDICATIONS THOUGH THAT KELLOGG AND POST ALREADY ARE GIVING BACK SOME OF THEIR ANNOUNCED PRICE INCREASES AT DAHL'S FOOD STORES IN DES MOINES IOWA BOTH KELLOGG AND POST HAVE HAD RECENT DISCOUNTS RANGING FROM 11 CENTS TO 27 CENTS ON A BROAD RANGE OF CEREALS BY CONTRAST THERE HAVEN'T BEEN DISCOUNTS ON GENERAL MILLS CEREALS A SPOKESMAN FOR POST A PHILIP MORRIS COS UNIT SAYS THAT WITH COUPONS CEREAL PRICES ARE UP AN AVERAGE OF JUST 1 TO 2 THE SPIRALING COSTS OF PROMOTION CAN EASILY GET OUT OF HAND MR LANGBO ACKNOWLEDGES I CERTAINLY WANT TO SLOW IT DOWN INDEED HE SAYS THAT WHILE CURRENTQUARTER PROMOTION WILL BE UP AS HIGHER PRICES SET IN FOR ALL OF 1993 KELLOGG WILL BE SPENDING LESS IN PROMOTION PER POUND OF CEREAL SOLD THAN IN 1992 ADVERTISING STILL REALLY DRIVES THIS CATEGORY MR LANGBO SAYS AND THE CEREAL GIANTS' PROMOTION SPECIALISTS SEEM WILLING TO TRY ALMOST ANY MEDIUM KELLOGG RECENTLY DISTRIBUTED SAMPLES OF RICE KRISPIES TREATS IN SUNDAY NEWSPAPER BAGS WHILE GENERAL MILLS PUT STICKERS ON BUNCHES OF CHIQUITA BANANAS SUGGESTING TO SHOPPERS SLICE ME ON CHEERIOS GENERAL MILLS'S MR SANGER ALSO QUESTIONS CEREAL MAKERS' RISING USE OF COUPONS CALLING THEIR DISTRIBUTION AND HANDLING INCREASINGLY COSTINEFFICIENT BUT THE EXECUTIVE WHO ONCE RAN THE COMPANY'S CEREAL DIVISION STILL SUPPORTS THE TACTIC AS A WAY TO ATTRACT FIRSTTIME BUYERS AND STIMULATE REPEAT BUSINESS DESPITE GENERAL MILLS'S MISGIVINGS ABOUT PROMOTION WHEN CHEERIOS' MARKET SHARE SLIPPED THIS YEAR THE COMPANY CRANKED UP THE DISCOUNT MACHINE ONE MIDWESTERN CHAIN SOLD THREE BOXES OF THE COMPANY'S TOASTED O'S FOR 5 OUR CHEERIOS FRANCHISE TENDS TO BE MOST AFFECTED BY NEW PRODUCT ACTIVITY MR SANGER SAYS TWO OF THE LATEST TO HIT THE MARKET TOASTED OATMEAL FROM QUAKER AND BRAN'NOLA FROM POST ALSO HAVE BEEN HERALDED WITH HEAVY PROMOTION 9311020168 931102 BUSINESS BRIEF SEC ALLEGES INVESTOR ADVISER SEABOARD INFLATED PERFORMANCE FIGURES IN ITS ADS WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION ACCUSED A NORFOLK VA INVESTMENT ADVISER OF ADVERTISING INFLATED PERFORMANCE FIGURES FOR MORE THAN SIX YEARS AND FALSELY STATING THAT CERTAIN PERFORMANCE FIGURES WERE AUDITED THE ACCUSATIONS ARE PART OF AN SEC ADMINISTRATIVE PROCEEDING AGAINST SEABOARD INVESTMENT ADVISERS INC A NINEYEAROLD COMPANY THAT MANAGES ASSETS TOTALING MORE THAN 11 BILLION IN MORE THAN 950 CLIENT ACCOUNTS ACCORDING TO THE SEC WE WOULD RATE THEM A LARGE INVESTMENT ADVISER SAID WILLIAM MECK ASSISTANT ADMINISTRATOR OF THE SEC'S REGIONAL OFFICE IN PHILADELPHIA WHERE THE ENFORCEMENT ACTION ORIGINATED THE SEC'S COMPLAINT SAID SEABOARD ADVERTISED ITS PERFORMANCE RANKINGS IN MAILINGS BUT THE COMPLAINT DIDN'T SPECIFY OTHER MEDIA NOR DID THE SEC COMPLAINT MENTION ANY CLIENT LOSSES AND PHILADELPHIA REGIONAL ADMINISTRATOR DON HOERL DECLINED TO COMMENT ON POSSIBLE LOSSES THE SEC ACCUSATIONS WHICH WILL BE HEARD BY AN ADMINISTRATIVE LAW JUDGE ALSO ALLEGE THAT SEABOARD'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER EUGENE HANSEN AND THE FIRM'S PRESIDENT AND CHIEF OPERATING OFFICER STEWART POWERS JR HELPED THE FIRM VIOLATE SEC RULES BOTH MEN ARE CHARTERED FINANCIAL ANALYSTS A PROFESSIONAL RANKING FOR PORTFOLIO MANAGERS THAT IS COMPARABLE TO THAT OF CERTIFIED PUBLIC ACCOUNTANT THE SEC SAID IN A STATEMENT THE FIRM SAID IT IS DUMBFOUNDED THAT ISSUES IN DISPUTE WITH THE SEC RESULTED IN THIS FORMAL ACTION BUT SAID IT IS HOPEFUL THIS MATTER CAN BE AMICABLY AND QUICKLY RESOLVED SEABOARD MAINTAINS ITS PREVIOUS FIGURES ARE ACCURATE REPRESENTATIONS OF PERFORMANCE USING ACCEPTED METHODOLOGIES BEFORE INDUSTRY STANDARDS WERE ESTABLISHED THE FIRM SAID ADDING THAT IT HAS RESTATED PERFORMANCE FIGURES IN COMPLIANCE WITH NEW STANDARDS ACTUAL PERFORMANCE ON CLIENT ACCOUNTS HAS IN NO WAY BEEN SUBJECT TO CRITICISM THE FIRM SAID 9311020167 931102 INTERNATIONAL HYUNDAI GROUP FOUNDER GETS 3YEAR JAIL SENTENCE SEOUL SOUTH KOREA CHUNG JU YUNG FOUNDER OF SOUTH KOREAN CONGLOMERATE HYUNDAI GROUP WAS SENTENCED TO THREE YEARS IN JAIL FOR EMBEZZLEMENT AND ELECTION FRAUD THE CHARGES FOLLOWED HIS UNSUCCESSFUL BID FOR THE PRESIDENCY LAST YEAR THE COURT RULED THAT THE 77YEAROLD MR CHUNG WOULD REMAIN FREE PENDING AN APPEAL BECAUSE HIS CONTRIBUTION TO THE COUNTRY'S ECONOMIC DEVELOPMENT IS RECOGNIZED SAID AN OFFICIAL AT THE SEOUL DISTRICT CRIMINAL COURT MR CHUNG WAS INDICTED IN FEBRUARY ON CHARGES OF DIVERTING MORE THAN 615 MILLION FROM HYUNDAI GROUP AND FUNNELING IT TO HIS UNITED PEOPLE'S PARTY TO UNDERWRITE HIS PRESIDENTIAL BID AFTER LOSING THE ELECTION MR CHUNG QUIT THE UPP THE GOVERNMENT OF THE PRESIDENTIAL VICTOR KIM YOUNG SAM LAUNCHED A SERIES OF TAX INVESTIGATIONS INTO HYUNDAI GROUP UNITS MANY INVESTORS CONSIDERED THE PROBES TO BE POLITICAL RETRIBUTION I HAVE NOTHING TO SAY STATE RADIO QUOTED MR CHUNG AS SAYING AFTER THE COURT SESSION HE HAD DENIED THE CHARGES 9311020165 931102 QUESTECH GETS AIR FORCE JOB FALLS CHURCH VA QUESTECH INC SAID IT RECEIVED A 48MONTH CONTRACT FROM THE AIR FORCE MATERIEL COMMAND WRIGHTPATTERSON AIR FORCE BASE FOR TECHNICAL SUPPORT FOR THE MANUFACTURINGTECHNOLOGY INDUSTRIAL BASE PROGRAM THE COMPANY SAID THE AWARD HAS A POTENTIAL VALUE OF 6 MILLION 9311020163 931102 TECHNOLOGY SOFTWARE COUNTERFEITER GETS ONEYEAR PRISON SENTENCE SAN FRANCISCO THE US DISTRICT COURT IN SAN FRANCISCO HAS IMPOSED WHAT IS BELIEVED TO BE THE FIRST PRISON SENTENCE FOR SOFTWARE COUNTERFEITING IN THE US BENNY S LEE A HONG KONG NATIONAL WITH AN ADDRESS IN FREMONT CALIF WAS SENTENCED TO ONE YEAR IN FEDERAL PRISON AND A YEAR OF PROBATION AFTER PLEADING GUILTY TO A MISDEMEANOR CHARGE OF TRAFFICKING IN COUNTERFEIT SOFTWARE GOODS HIS CODEFENDANT NORMAN CHAN OF FREMONT WHO ALSO PLEADED GUILTY TO THE MISDEMEANOR CHARGE WAS SENTENCED TO SIX MONTHS OF ELECTRONICALLY MONITORED HOME DETENTION FOLLOWED BY PROBATION MESSRS LEE AND CHAN WERE CRIMINALLY CHARGED AFTER FAILING TO MAKE ANY SIGNIFICANT PAYMENTS ON A 1991 CIVIL COURT AWARD OF 53 MILLION TO MICROSOFT CORP AND EVEREX SYSTEMS INC FOR MAKING AND DISTRIBUTING AT LEAST 25000 COUNTERFEIT COPIES OF MICROSOFT'S MSDOS OPERATING SYSTEM SOFTWARE SAID JIM LOWE CORPORATE COUNSEL FOR MICROSOFT WHICH IS BASED IN REDMOND WASH THAT SYSTEM WAS UNDER LICENSE TO EVEREX THE FREMONT COMPANY WHERE MESSRS LEE AND CHAN USED TO WORK MR LEE'S PRISON SENTENCE WAS ISSUED IN SEPTEMBER BUT ONLY RECENTLY MADE PUBLIC BY FEDERAL PROSECUTORS PROSECUTORS SAID MR LEE BEGAN SERVING HIS TERM A FEW DAYS AGO AS DID MR CHAN 9311020162 931102 WHAT'S NEWS WORLDWIDE CLINTON WARNED THAT JAPAN WOULD BE THE WINNER IF NAFTA ISN'T APPROVED PRODDING BUSINESS GROUPS TO HELP HIM GAIN APPROVAL OF THE TRADE ACCORD THE PRESIDENT TRIED TO RAISE FEARS THAT THE JAPANESE MAY ENACT THEIR OWN DEAL WITH MEXICO IF CONGRESS FAILS TO APPROVE THE PACT CLINTON IN A SPEECH BROADCAST TO BUSINESS GROUPS SUGGESTED JAPAN WOULD PROSPER IF THE US FAILS TO CREATE THE FREETRADE ZONE WITH MEXICO AND CANADA HIS SPEECH EXEMPLIFIED THE WHITE HOUSE'S STRATEGY OF USING JAPANBASHING AS A TOOL TO SHIFT ATTENTION AWAY FROM CONCERN ABOUT THE POSSIBLE LOSS OF US JOBS MEXICO'S PRESIDENT SALINAS DELIVERED A SOBER STATEOFTHEUNION ADDRESS THAT SEEMED TO BE DESIGNED TO PREPARE MEXICANS FOR THE POSSIBLE DEFEAT OF NAFTA THE SENATE WRESTLED WITH AN EFFORT TO ENFORCE A SUBPOENA FOR SEN PACKWOOD'S DIARIES IN CONNECTION WITH AN ETHICS COMMITTEE INQUIRY INTO SEXUAL HARASSMENT ALLEGATIONS AGAINST HIM THE OREGON REPUBLICAN ACCUSED THE PANEL OF ACTING AS PROSECUTOR JURY AND JUDGE HILLARY CLINTON CRITICIZED THE HEALTHINSURANCE INDUSTRY ACCUSING IT OF BEING GREEDY AND SPREADING LIES ABOUT THE ADMINISTRATION'S HEALTH PLAN THROUGH A SERIES OF TV ADS MRS CLINTON SINGLED OUT AN AD CAMPAIGN BY THE HEALTH INSURANCE ASSOCIATION OF AMERICA THE EPA PROPOSED STRICT PAPERINDUSTRY REGULATIONS THAT FOR THE FIRST TIME COMBINE AIR AND WATER REQUIREMENTS RATHER THAN ADDRESSING THEM SEPARATELY ACCORDING TO OFFICIALS THE RULE WILL VIRTUALLY ELIMINATE ALL DIOXIN DISCHARGES INTO RIVERS AND OTHER SURFACE WATERS AND WILL CUT TOXIC AIR EMISSIONS BY 70 THE SUPREME COURT DECLINED TO DISTURB A LOWERCOURT RULING THAT TEMPORARILY BLOCKED ENFORCEMENT OF AN ANTIGAYRIGHTS PROVISION ENACTED IN COLORADO THE COURT WITHOUT ARGUMENT REJECTED THE ARGUMENT THAT COLORADO COURT RULINGS SET A TOOHIGH LEGAL STANDARD FOR JUDGING WHETHER THE AMENDMENT VIOLATED HOMOSEXUALS' RIGHTS THE HIGH COURT AGREED TO SET NEW BOUNDARIES FOR ITS LANDMARK MIRANDA RULING ON THE RIGHTS OF CRIMINAL SUSPECTS BY DECIDING WHO QUALIFIES AS A SUSPECT AND HOW POLICE OFFICERS MUST RESPOND TO VAGUE REQUESTS FOR A LAWYER'S ASSISTANCE A WISCONSIN WELFARE PLAN RECEIVED APPROVAL FROM THE CLINTON ADMINISTRATION THE WELFAREREFORM EXPERIMENT THE TOUGHEST TO BE PROPOSED BY ANY STATE WOULD CUT OFF CASH BENEFITS FOR RECIPIENTS AFTER TWO YEARS BRITAIN'S MAJOR SAID HIS GOVERNMENT WILL PRESS FOR NEW TALKS ON NORTHERN IRELAND ADDING THAT OUTLAWED PARAMILITARY GROUPS COULD PARTICIPATE IF THEY RENOUNCE VIOLENCE BUT THE PRIME MINISTER SAID NO MAINSTREAM PARTY APPEARS ABLE TO GET THE EXTREMISTS TO STOP THEIR KILLING HAITI'S MILITARY HASN'T RESPONDED TO A UN REQUEST FOR NEW TALKS ON RESTORING OUSTED PRESIDENT ARISTIDE TO POWER ACCORDING TO US AND UN OFFICIALS THE UN WANTED TO CONVENE THE TALKS BY TOMORROW TOP HAITIAN MILITARY OFFICIALS WERE PAID BY THE CIA TO PROVIDE INTELLIGENCE INFORMATION TO THE US FROM THE MID1980S UNTIL THE 1991 COUP THAT FORCED ARISTIDE FROM OFFICE THE NEW YORK TIMES SAID NORTH KOREA DOESN'T APPEAR TO BE BUILDING A NUCLEAR WEAPON YET BUT HAS SUCCESSFULLY TESTED A MEDIUMRANGE MISSILE THAT WOULD PUT ALL OF SOUTH KOREA AND MUCH OF JAPAN WITHIN ITS RANGE SENIOR US DEFENSE OFFICIALS TOLD REPORTERS INTERNATIONAL WEAPONS INSPECTORS SAID IRAQ'S CLANDESTINE NUCLEAR WEAPONS PROGRAM HAS EITHER BEEN DESTROYED OR NEUTRALIZED BUT THE HEAD OF THE INTERNATIONAL ATOMIC ENERGY AGENCY TOLD THE UN GENERAL ASSEMBLY HE STILL HAD MORE TO LEARN ABOUT IRAQ'S NUCLEAR SUPPLY CHANNELS RUSSIAN SOLDIERS KILLED SEVERAL GEORGIAN REBELS IN THEIR WORST CLASHES SINCE RUSSIA WAS DRAWN INTO THE CIVIL WAR IN THE EXSOVIET REPUBLIC TROOPS LOYAL TO GEORGIAN LEADER SHEVARDNADZE RECAPTURED A RAILWAY JUNCTION BOSNIAN GOVERNMENT FORCES TOLD THE UN THEY KILLED 19 CROAT PRISONERS OF WAR WHO TRIED TO ESCAPE A UN SPOKESMAN SAID SEPARATELY THE UN ANNOUNCED IT IS INVESTIGATING ALLEGATIONS THAT UN PERSONNEL LAST YEAR FREQUENTED A SERBRUN BROTHEL FILLED WITH CAPTIVE MUSLIM AND CROAT WOMEN 9311020161 931102 QVC AND PARAMOUNT SWAP LETTERS ON HOLDING TALKS QVC NETWORK INC AND PARAMOUNT COMMUNICATIONS INC EXCHANGED LETTERS ABOUT HOLDING TALKS IN LEGAL SPARRING BEFORE A DELAWARE COURT HEARING NOV 16 ON QVC'S REQUEST FOR AN ORDER BLOCKING PARAMOUNT'S FRIENDLY MERGER WITH VIACOM INC IN A LETTER OCT 28 QVC CHAIRMAN BARRY DILLER TOLD PARAMOUNT'S BOARD HE IS PREPARED TO DISCUSS ALL ASPECTS OF QVC'S 101 BILLION 8147ASHARE BID IF PARAMOUNT WOULD ALLOW QVC TO COMPETE ON A LEVEL PLAYING FIELD WITH VIACOM PARAMOUNT HAS ACCEPTED A REVISED BID FROM VIACOM WORTH 10 BILLION OR 8013 IN A LETTER OCT 29 PARAMOUNT GENERAL COUNSEL DONALD ORESMAN SAID PARAMOUNT IS PREPARED TO MEET AND ASKED MR DILLER TO PLEASE HAVE YOUR COUNSEL CALL ME SO WE CAN SET A MUTUALLY CONVENIENT DATE TO MEET ONE ANALYST SAID IT APPEARED THAT QVC WAS TRYING TO BUILD A RECORD THAT PARAMOUNT WOULDN'T MEET WITH QVC WHILE PARAMOUNT WAS TRYING TO BUILD A RECORD THAT IT WOULD HOWEVER TRADERS BELIEVE THAT ONE OF THE MOST IMPORTANT ASPECTS OF THE COURT CASE WILL BE THE DIFFERENCE BETWEEN THE TWO BIDS THE MORE QVC'S BID EXCEEDS VIACOM'S THE GREATER QVC'S CHANCES ARE OF BLOCKING THE VIACOM DEAL 9311020160 931102 WHO'S NEWS BOWATER'S PRESIDENT RETIRES FROM 3 POSTS AT THE PAPER CONCERN GREENVILLE SC BOWATER INC SAID DAVID G MCMASTER 59 YEARS OLD RETIRED AS PRESIDENT CHIEF OPERATING OFFICER AND DIRECTOR OF THE PAPERPRODUCTS COMPANY A COMPANY SPOKESMAN SAID MR MCMASTER WASN'T AVAILABLE FOR COMMENT BOWATER SAID IT HAS NO PLANS TO NAME A SUCCESSOR THE ANNOUNCEMENT SURPRISED SOME ON WALL STREET WHO SAID THE COMPANY HADN'T INDICATED MR MCMASTER WOULD BE LEAVING SO SOON THIS ISN'T NORMALLY AN ABRUPT COMPANY SAID KATHRYN MCAULEY PAPER AND FORESTPRODUCTS ANALYST AT BROWN BROTHERS HARRIMAN BUT THE COMPANY IS UNDER PRESSURE BOWATER HAS BEEN HURT BY SLOW DEMAND FOR NEWSPRINT ONE OF ITS CORE BUSINESSES THIS YEAR THE COMPANY CUT ITS NEWSPRINT CAPACITY AND CHANGED SOME OPERATIONS TO PRODUCE OTHER HIGHERMARGIN GRADES OF PAPER ANALYSTS DON'T EXPECT THE OUTLOOK TO IMPROVE MUCH MS MCAULEY RECENTLY LOWERED HER 1993 FORECAST BY 10 CENTS EXPECTING THE COMPANY TO POST A LOSS OF 220 A SHARE 9311020159 931102 WHO'S NEWS LOUISIANAPACIFIC CORP LOUISIANAPACIFIC CORP PORTLAND ORE JOHN HART 60 YEARS OLD SAID HE WOULD RETIRE AT YEAR END FROM HIS DUTIES AS VICE PRESIDENT OF FINANCE TREASURER AND A MEMBER OF THE BOARD OF THIS BUILDING PRODUCTS FIRM WILLIAM L HEBERT 43 DIRECTOR OF INVESTOR RELATIONS WILL BECOME TREASURER AND CHIEF FINANCIAL OFFICER AND WILL RETAIN HIS CURRENT POSITION JAMES F ELLISOR 45 CONTROLLER OF THE COMPANY'S NORTHERN DIVISION WAS NAMED TO TAKE OVER MR HEBERT'S ADDITIONAL RESPONSIBILITIES AS CONTROLLEROPERATIONS AND AS THE CHIEF ACCOUNTING OFFICER 9311020158 931102 POLITICS & POLICY ADMINISTRATION CLEARS WISCONSIN PLAN FOR 2YEAR LIMIT ON WELFARE PAYMENTS BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION APPROVED A WISCONSIN WELFAREREFORM EXPERIMENT THE TOUGHEST PROPOSED BY ANY STATE THAT WOULD CUT OFF CASH BENEFITS FOR RECIPIENTS AFTER TWO YEARS PRESIDENT CLINTON HAS PROMISED TO REFORM THE WELFARE SYSTEM AND THE ADMINISTRATION IS DRAFTING LEGISLATION THAT AIDES SAY WOULD REQUIRE PARENTS TO WORK IN EXCHANGE FOR THEIR BENEFITS AFTER THEY'VE BEEN ON WELFARE FOR TWO YEARS THE WISCONSIN EXPERIMENT WHICH WILL APPLY TO ONLY TWO COUNTIES WOULD GO A STEP FURTHER IT SIMPLY WOULD CUT OFF CASH PAYMENTS WITHOUT GUARANTEEING A JOB THE STATE SAID HOWEVER THAT IT WILL PROVIDE EDUCATION AND TRAINING CHILD CARE HEALTH CARE TRANSPORTATION AND JOBPLACEMENT ASSISTANCE TO THOSE WHOSE BENEFITS EXPIRE THE PROGRAM GOV TOMMY THOMPSON SAID WILL EMPHASIZE PERSONAL RESPONSIBILITY REQUIRING MORE OF RECIPIENTS WHILE PROVIDING ADDITIONAL ASSISTANCE TO THEM THE DEPARTMENT OF HEALTH AND HUMAN SERVICES MUST APPROVE INDIVIDUAL STATE WELFAREREFORM PLANS TWO OTHER STATES VERMONT AND FLORIDA HAVE PROPOSED A TWOYEAR WELFARE LIMIT THOSE PLANS ARE PENDING BEFORE THE DEPARTMENT CRITICS SAY THE WISCONSIN PLAN IS TOO SEVERE AT THE TWOYEAR POINT THE FAMILY IS OFFERED NEITHER WORK NOR WELFARE IT IS SIMPLY DENIED CASH AID SAID MARK GREENBERG OF THE CENTER FOR LAW AND SOCIAL POLICY A WASHINGTON THINKTANK IN A PAPER OPPOSING THE PLAN WISCONSIN HAS PURSUED A WELFAREREFORM AGENDA MORE AGGRESSIVELY THAN MOST STATES REQUIRING SOME LONGTERM RECIPIENTS TO WORK OR GET TRAINING OR EDUCATION IN EXCHANGE FOR BENEFITS ITS WELFARE CASES HAVE FALLEN 17 SINCE 1986 ALTHOUGH THAT PARTLY REFLECTS THE FACT IT HAS ONE OF THE STRONGEST ECONOMIES IN THE NATION 9311020157 931102 REHABCARE COMPLETES DEAL ST LOUIS REHABCARE CORP SAID IT COMPLETED THE ACQUISITION OF ADVANCED REHABILITATION RESOURCES INC A CLOSELY HELD CONTRACT MANAGER OF ACUTE REHABILITATION UNITS THE COMPANY SAID THE PURCHASE WAS COMPLETED FOR 1528000 REHABCARE COMMON SHARES AND 937000 IN CASH REHABCARE SAID DAVID W CROSS ADVANCED REHABILITATION'S PRESIDENT AND CHIEF EXECUTIVE WILL BECOME EXECUTIVE VICE PRESIDENT AND CHIEF DEVELOPMENT OFFICER THE COMPANY SAID THE ADDITION OF ADVANCED REHABILITATION WILL INCREASE ITS NUMBER OF UNITS TO MORE THAN 80 IN NASDAQ STOCK MARKET COMPOSITE TRADING YESTERDAY REHABCARE GAINED 50 CENTS TO 1425 9311020156 931102 INDUSTRY FOCUS EUROPE LINGERS IN THE WAKE OF US MULTIMEDIA MIGHT FOCUS HAS BEEN ON BUSINESS NICHE RATHER THAN BIGGER CONSUMER MARKET BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON EUROPE IS MISSING THE BOAT THAT'S THE GROWING FEAR OF MANY EUROPEAN BUSINESS LEADERS AS THEY WATCH THE US SHOVE OFF ON THE NEW WAVE OF COMMUNICATIONS TECHNOLOGY SOCALLED INTERACTIVE MULTIMEDIA EUROPE IS LAGGING ENORMOUSLY FRETS CARLO DE BENEDETTI CHAIRMAN OF ITALIAN COMPUTER MAKER ING C OLIVETTI & CO IN THE US THE MONEYMAKING PROMISE OF MULTIMEDIA ALREADY HAS SPURRED ONE OF THE WORLD'S BIGGEST TAKEOVER ACCORDS THE PLANNED ACQUISITION BY BELL ATLANTIC CORP OF CABLETELEVISION GIANT TELECOMMUNICATIONS INC THOUGH IT IS STILL AN INFANT TECHNOLOGY AT THE HEART OF MULTIMEDIA IS THE CROSSBREEDING OF TELEVISIONS COMPUTERS AND TELEPHONES TO PRODUCE ANYTHING FROM A TV GAME SHOW YOU CAN PLAY ALONG WITH AT HOME TO A LONGDISTANCE VIDEO CONFERENCE OVER YOUR PERSONAL COMPUTER AT WORK BUT IN EUROPE ONLY A FEW BIG COMPANIES MOST PROMINENTLY PHILIPS ELECTRONICS NV OF THE NETHERLANDS BRITISH TELECOMMUNICATIONS PLC AND OLIVETTI ARE INVESTING SERIOUS SUMS TO BRING THEIR OWN MULTIMEDIA PRODUCTS TO MARKET LAST WEEK OLIVETTI AND BT LAUNCHED IN THE BRITISH MARKET A MULTIMEDIA PC THAT THEY DEVELOPED JOINTLY AND SUCH EUROPEAN RESEARCH AS THERE IS TAKES PLACE MAINLY THROUGH STATESUBSIDIZED PROGRAMS AND FOCUSES ON LONGTERM BUSINESS APPLICATIONS RATHER THAN IMMEDIATE CONSUMER PRODUCTS AS IN THE US ONLY A FEW EUROPEAN BROADCASTERS ARE EXPERIMENTING WITH MULTIMEDIA PROGRAMMING AND NOTHING LIKE A BELL ATLANTICTCI INDUSTRIAL REORGANIZATION TO DELIVER MULTIMEDIA SERVICES TO THE MARKETPLACE IS REMOTELY LIKELY IN MOST EUROPEAN COUNTRIES IN EUROPE WE ARE ESSENTIALLY EXPERIMENTING WHILE THE AMERICANS ARE DEPLOYING SAYS ROLAND HUBER HEAD OF RACE A 3 BILLION EUROPEAN COMMUNITY COMMISSION PROGRAM THAT SUBSIDIZES RESEARCH IN MULTIMEDIA AND OTHER COMMUNICATIONS TECHNOLOGIES HE FEARS THE CONSEQUENCES OF EUROPE'S TARDINESS MAY BE ECONOMICALLY PAINFUL EUROPE HAS SEEN THIS SHOW BEFORE A DECADE AGO IT WAS US FIRMS LIKE APPLE COMPUTER INC AND MICROSOFT CORP THAT TURNED PCS INTO A GLOBAL INDUSTRY LEAVING LATECOMING EUROPEANS TO SCRAPE BY AS UNPROFITABLE CLONE MAKERS IN THEIR HOME MARKETS A SIMILAR FATE AWAITS EUROPE OVER MULTIMEDIA IF IT DOESN'T GET MOVING SOME CASSANDRAS WARN INDEED IT'S ALREADY HAPPENING IN THE UK MARKET FOR TVSET DECODERS THE SETTOP ELECTRONIC BOXES USED IN CABLETV SYSTEMS THAT WILL BE KEY TO ANY HOME MULTIMEDIA SERVICES TWO US COMPANIES GENERAL INSTRUMENT CORP AND SCIENTIFICATLANTA INC HOLD NEARLY 90 OF THE MARKET AGAINST JUST ONE SIGNIFICANT BRITISH RIVAL A UNIT OF CARLTON COMMMUNICATIONS PLC THE REASONS FOR EUROPE'S SLUGGISHNESS INCLUDE ITS FRAGMENTATION BY BORDERS AND LANGUAGES INTO SMALL NATIONAL MARKETS DISCOURAGING RISKY INVESTMENTS BUT MANY ALSO BLAME THE CONTINENT'S STATETELEPHONE MONOPOLIES AND THEIR INNOVATIONSQUELCHING CONTROL OVER MOST ASPECTS OF COMMUNICATIONS MARKETS THOUGH THE BELL ATLANTICTCI DEAL COULD BE BLOCKED OR MODIFIED BY US ANTITRUST AUTHORITIES GENERALLY IN THE US YOU DON'T HAVE TO GET A LICENSE FROM A REGULATOR EVERY TIME YOU WANT TO DO SOMETHING GRIPES MR DE BENEDETTI IN PART SOME FUNDAMENTAL DIFFERENCES IN COMMERCIAL OUTLOOK EXPLAIN THE USEUROPEAN RIFT ON MULTIMEDIA SAYS FIONA WILLIAMS A RESEARCH MANAGER FOR SWEDISH TELECOMMUNICATIONS COMPANY TELEFON AB L M ERICSSON THOUGH THERE'S A BROAD RANGE OF MULTIMEDIA RESEARCH IN THE US MUCH OF THE EXCITEMENT HAS BEEN ABOUT CONSUMER PRODUCTS PULLING THE LIVINGROOM TV SET INTO THE 21ST CENTURY BY LETTING IT SEND AS WELL AS RECEIVE INFORMATION BY CONTRAST MOST EUROPEAN RESEARCH ON MULTIMEDIA HAS COME FROM A DIFFERENT ANGLE GIVING COMPUTERS IN THE WORKPLACE THE POWER TO HANDLE VIDEO AND VOICE AS WELL AS DATA IN THAT VEIN DEUTSCHE BUNDESPOST TELEKOM AND OTHER EUROPEAN PHONE COMPANIES HAVE SUNK BILLIONS INTO THE SOCALLED INTEGRATED SERVICES DIGITAL NETWORK TO SQUEEZE ANY KIND OF DATA WHETHER VIDEO IMAGE OR STANDARD PHONE CALL DOWN TODAY'S COPPER PHONE WIRES SO FAR ABOUT 25 OF BUSINESSTELEPHONE LINES IN WESTERN EUROPE RUN ON ISDN AND AS MANY AS 50 MAY DO SO BY 2002 SAYS LONDON CONSULTING FIRM CIT RESEARCH LTD IN THE US WITHOUT A SIMILAR STATESUPPORTED PUSH ISDN IS TAKING OFF MORE SLOWLY BUT THIS FORBUSINESSONLY APPROACH HAS MANY FLAWS ANALYSTS SAY IT RISKS STRANDING THE EUROPEANS IN ONE NARROW HIGHPRICE SEGMENT OF THE MULTIMEDIA MARKET OUTFLANKED BY US COMPANIES PURSUING ALL ASPECTS OF MULTIMEDIA AT ONCE WORSE IT'S NECESSITATED BY THE LACK OF MEANS TO DELIVER CONSUMER MULTIMEDIA UNLIKE THE US MOST EUROPEAN COUNTRIES HAVE CABLETV NETWORKS TOO ANTIQUATED TO CARRY MASSMARKET MULTIMEDIA SERVICES SAYS RICHARD WOOLLAM DIRECTOR GENERAL OF BRITAIN'S CABLE TELEVISION ASSOCIATION THEIR MANAGERS SIMPLY AREN'T CLUED INTO MULTIMEDIA'S POTENTIAL NONETHELESS A FEW EUROPEAN TECHNOLOGY COMPANIES ARE PLOWING AHEAD IN MULTIMEDIA ENTERTAINMENT SERVICES SIMON CORNWELL A BRITISH ENTREPRENEUR IS BETTING THAT ALL MULTIMEDIA NEEDS TO SUCCEED IN EUROPE IS SIMPLICITY TO ACCOMMODATE TECHNOPHOBIA AND LOWER DISPOSABLE INCOMES HERE CLUTCHING A SMALL GRAY BOX RESEMBLING A COMPUTERGAME CONSOLE MR CORNWELL PRESSES A BUTTON SELECTING ANSWER NO 3 CHARLES HAUGHEY HIS TV SCREEN DISPLAYS THE CHOICE THE CORRECT ONE IT TURNS OUT AT THE END OF THE SHOW THE SYSTEM TOTALS UP HIS SCORE AND SUPERIMPOSES IT ON SCREEN THERE'S NOTHING NOVEL ABOUT THIS SYSTEM IN FACT IT'S A GREATLY SIMPLIFIED VERSION OF A PRODUCT THAT HIS COMPANY INTERACTIVE NETWORK LTD LICENSED FROM A LIKENAMED BUT OTHERWISE UNRELATED STARTUP CALLED INTERACTIVE NETWORK INC IN MOUNTAIN VIEW CALIF MR CORNWELL PLANS TO START SELLING IT NEXT YEAR AT LESS THAN 200 29629 FOR A FOURCONSOLE SET IN COLLABORATION WITH A BIG UK TELEVISION BROADCASTER HE DECLINES TO NAME COMPARED WITH THE MORE COMPLEX BUTTONBRISTLING US PRODUCT MR CORNWELL SAYS HIS VERSION IS VERY SIMPLE VERY LOW TECH BUT IT'S HERE TODAY SIMPLICITY HAS ALSO BEEN THE BYWORD OF THE FEW OTHER EUROPEAN ATTEMPTS TO GET MULTIMEDIA ENTERTAINMENT OFF THE GROUND IN EUROPE IN SPAIN THE STATE TELEVISION BROADCASTER LAST JANUARY BEGAN A SIMILAR GAMESHOW SYSTEM WITH A SMALL STARTUP CALLED INTERACTIVE TELEVISION SA IN BARCELONA ALSO LICENSING US TECHNOLOGY BUT AMONG EUROPE'S BIG TECHNOLOGY COMPANIES ONLY A FEW SHOW MUCH ENTHUSIASM FOR MULTIMEDIA PHILIPS HAS BET MILLIONS ON PROMOTING ITS CDI OR COMPACT DISK INTERACTIVE PCS THAT PULL VIDEO TEXT AND SOUND OFF A COMPACT DISK INSTEAD OF FROM CABLE TV OR TELEPHONE LINES 9311020155 931102 WHO'S NEWS RR DONNELLEY & SONS CO RR DONNELLEY & SONS CO CHICAGO JOHN S OBERHILL 52 YEARS OLD AND GROUP VICE PRESIDENT IN EUROPE WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT CORPORATE MANUFACTURING SERVICES HE'LL OVERSEE ALL MANUFACTURING AND PURCHASING AND A DISTRIBUTION UNIT JAMES G TURNER 53 AND FORMERLY AN EXECUTIVE WITH INTERNATIONAL BUSINESS MACHINES CORP WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT TECHNOLOGY IN DONNELLEY'S TECHNOLOGY GROUP WHERE HE'LL OVERSEE THE PRINTING CONCERN'S LISLE ILL RESEARCHANDDEVELOPMENT CENTER 9311020154 931102 DEAN FOODS WILL BUY BIRDS EYE BRAND FROM PHILIP MORRIS UNIT FOR 140 MILLION BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL DEAN FOODS CO ALREADY THE COUNTRY'S LEADING PROCESSOR OF PRIVATELABEL FROZEN VEGETABLES AGREED TO ACQUIRE THE BIRDS EYE FROZEN VEGETABLES BRAND FROM PHILIP MORRIS COS' KRAFT GENERAL FOODS FOR 140 MILLION IF APPROVED BY FEDERAL REGULATORS BOTH THE COMPANY AND INDUSTRY ANALYSTS SAY THEY EXPECT NO OPPOSITION THE ACQUISITION WOULD NEARLY DOUBLE DEAN'S VEGETABLE SALES AND GIVE IT THE BROADEST ARRAY OF PRODUCTS IN THE MARKETPLACE AS WELL AS THE OLDEST NAME IN THE FROZEN CATEGORY THE ACQUISITION WOULD MORE THAN DOUBLE DEAN'S ANNUAL SALES OF FROZEN VEGETABLES TO ABOUT 460 MILLION AND INCREASE THE COMPANY'S PORTION OF THE US'S 36 BILLION PROCESSEDVEGETABLES MARKET TO NEARLY 17 FROM ABOUT 10 FOR THE YEAR ENDED MAY 30 DEAN REPORTED VEGETABLE SALES OF 347 MILLION OR ABOUT 15 OF ITS 23 BILLION TOTAL SALES DEAN IS THE NATION'S SECONDLARGEST DAIRY BEHIND BORDEN INC THEY OFFER US ALL KINDS OF NEW BLENDS AND VALUEADDED PRODUCTS WE'RE NOT DOING HOWARD DEAN CHAIRMAN AND CHIEF EXECUTIVE OF THE FRANKLIN PARK ILL COMPANY SAID OF THE ACQUISITION WE THINK IT COMPLEMENTS OUR LINE VERY WELL AND GIVES US A GREAT NATIONAL BRAND DEAN HASN'T BEEN SUCCESSFUL IN MARKETING PREPARED FROZEN VEGETABLES IN READYTOHEAT SAUCES A CATEGORY IN WHICH BIRDS EYE HAS NUMEROUS OFFERINGS WHILE THE MARKET FOR PLAIN SLICEDANDDICED VEGETABLES HAS BEEN FLAT THE ONE FOR SOCALLED VALUEADDED PRODUCTS WHICH ALSO INCLUDES VEGETABLES WITH PASTA IS GROWING DEAN'S MAJOR BRANDS INCLUDE VEGALL CANNED VEGETABLES AND FRESHLIKE A FROZEN AND CANNED LINE SOLD PRIMARILY IN THE MIDWEST KRAFT SAID LAST MONTH IT WAS CONSIDERING SELLING BIRDS EYE THE NO 2 FROZENVEGETABLES BRAND IN THE US BEHIND GRAND METROPOLITAN PLC'S GREEN GIANT AT THE TIME A KRAFT EXECUTIVE EXPLAINING THE DECISION SAID YOU CAN BE EITHER REALLY BIG AND DEVELOP SIGNIFICANT ECONOMIES OF SCALE OR YOU CAN BE VERY FOCUSED AND GO AFTER SEGMENTS THAT ARE ATTRACTIVE WHERE YOU DON'T WANT TO BE IS SOMEWHERE IN THE MIDDLE WITHOUT A CANNED LINE AND BRUISED IN THE COMMODITYLIKE PLAIN VEGETABLES MARKET BIRDS EYE WAS MORE SUSCEPTIBLE TO ECONOMIC SWINGS LATELY THE VEGETABLE MARKET HAS BEEN HIT BY FLOODING AND FICKLE CONSUMERS MOREOVER WHERE BIRDS EYE PROCESSED ONLY ABOUT ONETHIRD OF THE VEGETABLES IT SELLS DEAN HANDLES CROPS FROM FIELD TO SUPERMARKET SHELF THE BIRDS EYE ACQUISITION ALSO INCLUDES A SMALL FROZENFRUIT BUSINESS INVESTORS LIKE THE PROSPECTS DEAN'S STOCK JUMPED ABOUT 6 ON THE NEWS TO CLOSE AT 27125 UP 150 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING IT DEFINITELY MAKES SENSE SAID RAVI SADARANGANI FOOD ANALYST WITH WILLIAM BLAIR & CO IN CHICAGO BUYING BIRDS EYE REDUCES DEAN'S EARNINGS VOLATILITY BECAUSE DEAN HAS TRADITIONALLY BEEN IN THE PRIVATELABEL SEGMENT WHERE PRICES ARE MORE SUSCEPTIBLE TO COMMODITY CYCLES BIRDS EYE'S PREMIUM PRODUCTS AREN'T AS VULNERABLE TO SUCH FLUCTUATIONS HE SAID FOOD ANALYST GEORGE DAHLMAN AT PIPER JAFFRAY IN MINNEAPOLIS SAID THIS IS A TIME IN THE VEGETABLE INDUSTRY FOR FINANCIALLY STRONG AND SMART COMPANIES TO GET IN DEEPER THE INDUSTRY IS AT A CYCLICAL BOTTOM SO DEAN IS DOUBLY LEVERAGED TO TAKE ADVANTAGE OF RECOVERY THE ACQUISITION WOULD INCLUDE THREE PLANTS IN MINNESOTA NEW YORK AND MEXICO INCREASING DEAN'S PROCESSING FACILITIES TO 18 MR DEAN SAID THE COMPANY INTENDS TO RETAIN BIRDS EYE'S PRODUCTION SALES AND DISTRIBUTION FORCE BUT TO PARE SOME ADMINISTRATION PERSONNEL BIRDS EYE NOW PART OF KRAFT'S ALLAMERICAN GOURMET CO IS BASED IN ORANGE CALIF AND HAS ABOUT 900 EMPLOYEES DEAN WAS AMONG NUMEROUS BIDDERS FOR BIRDS EYE INCLUDING UNILEVER NV A DUTCH COMPANY THAT RECENTLY ACQUIRED THE BREYER'S ICE CREAM BUSINESS FROM KRAFT 9311020153 931102 WHO'S NEWS SEARS ROEBUCK & CO SEARS ROEBUCK & CO CHICAGO STANLEY H WRIGHT 46 YEARS OLD FORMERLY DIRECTOR OF FINANCIAL ANALYSIS WAS NAMED PRESIDENT OF SEARS INVESTMENT MANAGEMENT CO A SUBSIDIARY OF THIS RETAIL CONCERN SUCCEEDING DAVID DOOTSON WHO TOOK EARLY RETIREMENT 9311020152 931102 BUSINESS BRIEFS AIRGAS INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE THE CALIFORNIA AND NEVADA RETAIL INDUSTRIAL GAS AND WELDING SUPPLY OPERATIONS OF THE AIRCO GAS & GEAR BUSINESS UNIT OF BOC GROUP PLC TERMS WEREN'T DISCLOSED ALLTEL CORP PAID 440 MILLION AND EXCHANGED 95000 ACCESS LINES IN THE MIDWEST FOR GTE CORP'S 285000 LINES IN GEORGIA INDRESCO INC SOLD A MERU FRANCE COMPRESSOR UNIT TO ATLAS COPCO AB STOCKHOLM TERMS WEREN'T DISCLOSED REYNOLDS METALS CO ACQUIRED MILLER BREWING CO'S ALUMINUM BEVERAGE CAN AND ENDMANUFACTURING OPERATIONS MILLER IS A UNIT OF PHILIP MORRIS COS MORTON INTERNATIONAL INC WAS AWARDED A CONTRACT FOR A MAJOR PORTION OF VOLKSWAGEN AG'S PLANNED AIRBAG REQUIREMENTS BEGINNING IN MODEL YEAR 1996 WITH FURTHER PLANS TO INCREASE VOLUME TERMS WEREN'T DISCLOSED 9311020151 931102 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY CHRISTOPHER CONTE SHARE THE PAIN WHEN IT COMES TO UNEMPLOYMENT IT'S NOT THE AMERICAN WAY EUROPEAN GOVERNMENTS COMMONLY PAY PRORATED JOBLESS BENEFITS TO EMPLOYEES OF COMPANIES THAT REDUCE HOURS BROADLY RATHER THAN LAY OFF WORKERS BESIDES SPREADING HARDSHIP AROUND THE PRACTICE HELPS COMPANIES RETAIN WORKERS BUT IN THE US ONLY 17 STATES HAVE SUCH WORKSHARING PROGRAMS AND FEW EMPLOYERS PARTICIPATE ONLY NINE OF 147000 MASSACHUSETTS EMPLOYERS OFFER THE OPTION FOR INSTANCE WORKSHARING CREATES HARDSHIP FOR MORE WORKERS SAYS MARY ANN LYNCH PERSONNEL CHIEF AT AMERICAN AIRLINES WHERE 7000 LAYOFFS ARE PLANNED THIS YEAR AND NEXT WASHINGTON STATE TRIED TO SIGN UP BOEING FOR WORKSHARING BUT THE COMPANY WASN'T INTERESTED PROMOTIONAL EFFORTS ARE INVISIBLE KATHY SMITH COLEMAN CO'S HUMANRESOURCES CHIEF DIDN'T EVEN KNOW KANSAS OFFERED THE OPTION CONSULTANT RONALD ADLER OF LAURDAN ASSOCIATES POTOMAC MD SAYS MANY EMPLOYERS AREN'T INTERESTED BECAUSE THEY ARE MAKING PERMANENT NOT TEMPORARY LAYOFFS PRESSURE BUILDS ON PENSIONPLAN MANAGERS TO REVISE ECONOMIC ASSUMPTIONS THE SEC STEPS UP SCRUTINY OF PLANS THAT DON'T CUT THEIR INTERESTRATE ASSUMPTIONS TO REFLECT MARKET TRENDS DISCOUNT RATES WHAT COMPANIES SAY THEY WOULD EARN ON HIGHQUALITY FIXEDINCOME INVESTMENTS ABOVE 9 WILL BE LOOKED AT CLOSELY ERNST & YOUNG SAYS THE AVERAGE RATE DOWN TO 82 LAST YEAR FROM 87 IN 1990 IS HEADING LOWER IT REPORTS AT LEAST ONE COMPANY TRIMS ITS RATE TO 8 FROM 9 FOLLOWING AN SEC INQUIRY ADJUSTING RATES CAN HURT THE BALANCE SHEET FORD ERASES A 3 BILLION PENSION SURPLUS WHEN IT CUTS ITS RATE TO 7 FROM 8 GILLETTE SAYS THE 8 RATE IT HAS USED THE PAST TWO YEARS IS TOO HIGH DEXTER CORP SAYS ITS 75 RATE WILL STAY THE SAME OR BE ADJUSTED DOWNWARD ALUMINUM CO OF AMERICA CUTS ITS RATE TO 65 FROM 675 THE MARRIAGE BONUS ONLY MEN WITH STAYATHOME WIVES NEED APPLY MARRIED MEN WITH CHILDREN TRADITIONALLY HAVE EARNED MORE THAN OTHER MANAGERS BUT A STUDY OF 925 MBA HOLDERS SUGGESTS ONLY FATHERS WHOSE WIVES DON'T HOLD JOBS GET THE EXTRA PAY HUSBANDS IN TWOEARNER FAMILIES COLLECT AS MUCH AS BACHELORS AND MARRIED MEN WITHOUT CHILDREN BUT 20 LESS THAN FAMILY MEN WITH WIVES AT HOME SAY RESEARCHERS JOY SCHNEER OF RIDER COLLEGE AND FRIEDA REITMAN OF PACE UNIVERSITY POSTTRADITIONAL MEN DO NOT FIT THE STEREOTYPE OF THE ORGANIZATION MAN' ABLE TO DEVOTE ALL HIS ENERGIES TO MEETING GREAT WORK DEMANDS THE AUTHORS SAY BUT THEIR STUDY PUBLISHED IN THE ACADEMY OF MANAGEMENT JOURNAL SAYS SINGLEWOMEN MANAGERS ONCE PREFERRED OVER MARRIED WOMEN NOW EARN LESS BECAUSE THEY ARE VIEWED AS HAVING LESS ATTACHMENT TO THEIR ORGANIZATIONS STILL MEMBERS OF TWOEARNER FAMILIES ARE MORE SATISFIED WITH THEIR CAREERS FITTING THE TRADITIONAL SUCCESSFULMANAGER MODEL MAY NOT HAVE BEEN THEIR GOAL THE AUTHORS CONCLUDE SWITCHING SIDES EMPLOYEES AT TEAMSTERS HEADQUARTERS AUTHORIZE A STRIKE AFTER THE UNION DENIES PROFESSIONAL STAFFERS FULL RIGHTS TO BUMP JUNIOR WORKERS IN LAYOFFS THE TEAMSTERS WOULD LET PROFESSIONALS BUMP ONLY WITHIN THEIR DEPARTMENTS BOTH SIDES SEE A MEDIATOR NEXT WEEK NOT SO FAST VICE PRESIDENT GORE'S REINVENTING GOVERNMENT INITIATIVE PROPOSED TO EASE THE DAVISBACON ACT WHICH REQUIRES CONSTRUCTION COMPANIES TO PAY PREVAILING WAGES ON FEDERAL PROJECTS BUT THE IDEA DOESN'T APPEAR IN LEGISLATION THE WHITE HOUSE SENDS TO CONGRESS A GORE AIDE SAYS THE ADMINISTRATION WANTS TO FASHION A BILL WITH LAWMAKERS JOB LOCK FEAR OF LOSING HEALTH COVERAGE REDUCES JOB MOBILITY BY ABOUT 25 ACCORDING TO HARVARD ECONOMIST BRIGITTE MADRIAN IN A NATIONAL BUREAU OF ECONOMIC RESEARCH PAPER SHE SAYS THAT IF HEALTH INSURANCE WERE MADE FULLY PORTABLE THE VOLUNTARY JOB TURNOVER RATE AMONG MEN WOULD RISE TO ABOUT 16 FROM 12 CURRENTLY THEY LIED THEIR BOSSES SAID BUT WAS IT A FIRING OFFENSE WHILE FIGHTING A FIRED EMPLOYEE'S DISCRIMINATION LAWSUIT TRUMP CASTLE HOTEL AND CASINO SAID IT LEARNED THAT THE FORMER STAFFER MISREPRESENTED ON HIS JOB APPLICATION WHY HE LEFT A FORMER JOB BUT US DISTRICT JUDGE JOHN GERRY SAID TRUMP STILL MUST ANSWER THE DISCRIMINATION CHARGES AND TRUMP CAN'T FIRE THE EMPLOYEE UNLESS IT CAN PROVE IT WOULDN'T HAVE HIRED HIM HAD IT KNOWN THE TRUTH SEPARATELY SEILER CORP SAID A JOB APPLICANT VOLUNTEERED DURING AN INTERVIEW THAT SHE WASN'T PLANNING TO HAVE MORE CHILDREN SHE WAS FIRED A MONTH LATER AFTER ANNOUNCING SHE WAS PREGNANT AND HAD KNOWN IT ALL ALONG THE MASSACHUSETTS SUPREME COURT RULED THAT SHE COULDN'T BE FIRED HAD SHE LIED IN RESPONSE TO A QUESTION ABOUT HER PARENTAL STATUS BUT SHE COULD BE DISMISSED IF SHE HAD VOLUNTEERED THE INFORMATION SAYS COLLEGE PLACEMENT COUNCIL COUNSEL ROCHELLE KAPLAN COMPANIES SHOULD CONDUCT THOROUGH INTERVIEWS BUT AVOID ILLEGAL QUESTIONS AND APPLICANTS SHOULD TELL THE TRUTH BUT NOT VOLUNTEER PERSONAL INFORMATION THE CHECKOFF THIRDQUARTER WAGE SETTLEMENTS CALL FOR INCREASES OF JUST 16 ANNUALLY COMPARED WITH 29 IN THE CONTRACTS THEY REPLACED THE LABOR DEPARTMENT SAYS CORPORATE CHAIRMEN WHO DON'T ALSO HOLD THE TITLE OF CEO EARN ON AVERAGE 575000 70 OF WHAT OFFICIALS WITH BOTH TITLES MAKE SAYS CONSULTANT WILLIAM M MERCER 9311020150 931102 INTERNATIONAL BT CUTS RATES ON PHONE CALLS AS MUCH AS 60 BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON BRITISH TELECOMMUNICATIONS PLC CUT SOME OF ITS LONGDISTANCE RATES AS MUCH AS 60 FUELING A PRICE WAR IN THE UNITED KINGDOM TELEPHONE MARKET WITH MUCH FANFARE THE BRITISH PHONE COMPANY ANNOUNCED THE FIRST OF A SERIES OF CALLING DISCOUNTS THAT IT SAID WILL PROVIDE CONSUMERS WITH ANNUAL SAVINGS OF MORE THAN 500 MILLION 741 MILLION THE INITIAL DISCOUNTS TO START DEC 4 INCLUDE CUTTING BT'S DOMESTIC LONGDISTANCE TARIFFS BETWEEN 9 AND 60 BUT ONLY ON WEEKENDS WEEKDAY RATES WILL BE UNCHANGED A USSTYLE PRICE WAR IS A RARE PHENOMENON IN THE GENERALLY HIGHPRICED WORLD OF EUROPEAN TELECOMMUNICATIONS ALTHOUGH THE DISCOUNT WASN'T ENTIRELY INSPIRED BY RIVALS THE GOVERNMENT WAS ALSO A MOTIVATOR UNDER ORDERS FROM THE UK OFFICE OF TELECOMMUNICATIONS OR OFTEL BT IS OBLIGED TO REDUCE THE AVERAGE PRICE OF A BASKET OF COMMON TYPES OF COMMUNICATIONS SERVICES BY 636 BEFORE NEXT JULY 31 OFTEL SAID BT'S SELECTIVE CUTS YESTERDAY AVERAGE OUT TO 203 OFF ALL REGULATED TELEPHONE CHARGES ANALYSTS EXPECT THE CUTS TO STIMULATE MORE TELEPHONE USE OFFSETTING ANY LOST REVENUE OR PROFIT TO BT WHICH STILL HOLDS 90 OF THE UK COMMUNICATIONS MARKET BUT HARDER HIT WILL BE BT'S RIVALS INCLUDING NYNEX CORP U S WEST INC AND THE MERCURY COMMUNICATIONS LTD UNIT OF CABLE & WIRELESS PLC SOME OF THEM ARE STILL BUILDING THEIR PHONE NETWORKS AND HAVING ALREADY ANNOUNCED DISCOUNTS OF THEIR OWN TO ATTRACT NEW CUSTOMERS HAVE LIMITED SCOPE TO PARRY BT'S THRUST WITHOUT INCURRING ADDITIONAL LOSSES ANALYSTS SAID IN A WAR OF ATTRITION THE FAT MAN WINS AND BT IS DEFINITELY THE FAT MAN SAID ANALYST ROBERT MORRIS OF GOLDMAN SACHS INTERNATIONAL LTD REFERRING TO BT'S ABOVEAVERAGE PROFIT MARGINS IN RECENT WEEKS A JOINT VENTURE BETWEEN MERCURY AND U S WEST BEGAN OFFERING FREE LOCAL CALLS ON NIGHTS AND WEEKENDS OVER ITS NEW MOBILEPHONE SERVICE CALLED MERCURY ONE2ONE AND NEW YORKBASED NYNEX WHICH IS PROVIDING PHONE SERVICE OVER ITS BRITISH CABLETELEVISION NETWORK HAS BEEN UNDERCUTTING BT'S LONGDISTANCE RATES BY AS MUCH AS 13 A SPOKESMAN SAID MERCURY WELCOMES BT'S CUTS AS CLEARLY A RESPONSE TO OUR OWN DISCOUNTS WHEN ASKED IF MERCURY WILL COUNTERATTACK HE SAID WE'LL CONTINUE WITH OUR POLICY OF COMING UP WITH NEW PRICE INITIATIVES WHICH WILL KEEP US IN THE LEADING POSITION THE BT DISCOUNT PACKAGE INCLUDES A CUT IN ITS WEEKEND TARIFFS ON LONGDISTANCE CALLS TO A FLAT FEE OF 10 PENCE FOR A THREEMINUTE CALL TO ANYWHERE IN BRITAIN DOWN FROM THE CURRENT PRICE OF BETWEEN 15 PENCE AND 25 PENCE THE COMPANY IS ALSO CUTTING CONNECTION CHARGES FOR HIGHSPEED LEASED DIGITALDATA COMMUNICATIONS LINES BY AS MUCH AS 25 9311020149 931102 WHO'S NEWS CST ENTERTAINMENT IMAGING INC CST ENTERTAINMENT IMAGING INC LOS ANGELES SAID IT NAMED JODY SHAPIRO PRESIDENT MR SHAPIRO 38 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT OF RHI ENTERTAINMENT INC IN NEW YORK MR SHAPIRO WILL REPORT TO GERALD SHEFSKY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CST WHICH IS IN THE BUSINESS OF ELECTRONICALLY CONVERTING BLACKANDWHITE FILM TO COLOR VIDEOTAPE 9311020148 931102 ECONOMY MANUFACTURING SHOWED GROWTH DURING OCTOBER INCREASE IN PURCHASING INDEX IS FIRST IN FIVE MONTHS BUT JOBS REMAIN SCARCE BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MANUFACTURING SECTOR EXPANDED IN OCTOBER FOR THE FIRST TIME IN FIVE MONTHS A NEW SURVEY OF PURCHASING MANAGERS SUGGESTS BUT GROWTH STILL HASN'T TRANSLATED INTO EMPLOYMENT OPPORTUNITIES AT US FACTORIES THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT SAID ITS INDEX WHICH PROVIDES ONE OF THE EARLIEST LOOKS AT MANUFACTURING EACH MONTH ROSE TO 538 IN OCTOBER FROM 497 IN SEPTEMBER OF THE 20 INDUSTRIES SURVEYED IN THE REPORT 15 REPORTED GAINS OCTOBER'S INDEX IS THE HIGHEST SINCE A 558 READING IN MARCH AND THE FIRST TIME THE INDEX HAS BEEN ABOVE 50 SINCE MAY READINGS ABOVE 50 INDICATE THAT MANUFACTURING IS EXPANDING WHILE LEVELS BELOW 50 SUGGEST IT'S CONTRACTING THE INDEX IS BASED ON A SURVEY OF PURCHASING EXECUTIVES IN MORE THAN 300 INDUSTRIAL COMPANIES THE GROWTH IN THE INDEX MAY BE A SIGN THAT THE MANUFACTURING SECTOR IS SHAKING A LONG PERIOD OF SLUGGISHNESS THAT HAS SEEMED EVEN MORE LACKLUSTER THAN THE MODEST RECOVERY AS A WHOLE OCTOBER GROWTH WAS CENTERED IN NEW ORDERS AND PRODUCTION ACCORDING TO ROBERT J BRETZ WHO HEADS THE SURVEY AND IS THE DIRECTOR OF CORPORATE PURCHASING FOR PITNEY BOWES INC NEW ORDERS PROVIDED THE FUEL FOR A SHARP REVERSAL IN THE MANUFACTURING SECTOR TOWARDS HEALTHY GROWTH MR BRETZ SAID BUT IN WHAT HAS BECOME A CONTINUING ECONOMIC TREND RISES IN DEMAND AND PRODUCTION WEREN'T MET WITH INCREASED HIRING THE EMPLOYMENT COMPONENT OF THE PURCHASING MANAGERS' INDEX WAS 455 IN OCTOBER A SLOWER RATE OF DECLINE THAN THE 445 LEVEL IN SEPTEMBER BUT STILL TROUBLING TO ANALYSTS WILLIAM DUNKELBERG DEAN OF THE TEMPLE UNIVERSITY SCHOOL OF BUSINESS AND MANAGEMENT AND CHIEF ECONOMIST FOR THE NATIONAL FEDERATION FOR INDEPENDENT BUSINESS SAID THAT MANUFACTURERS AREN'T HIRING IN THE ANTICIPATION OF GROWTH EVEN WITH EXPANSION OF PRODUCTION AND DEMAND MOST MANUFACTURERS RATHER THAN HIRING NEW WORKERS ARE ASKING CURRENT EMPLOYEES TO WORK OVERTIME BRUCE STEINBERG SENIOR ECONOMIST FOR MERRILL LYNCH & CO ALSO ATTRIBUTED WEAK LEVELS OF MANUFACTURING EMPLOYMENT TO HIGHER LEVELS OF INDUSTRYWIDE PRODUCTIVITY HE SAID INCREASED PRODUCTIVITY WILL EVENTUALLY LEAD TO A HIGHER STANDARD OF LIVING BUT THAT NEW JOBS WILL NEED TO BE SUPPLIED BY SERVICEORIENTED INDUSTRIES TO MAKE UP FOR THOSE NO LONGER NEEDED IN MANUFACTURING ALTHOUGH THE DOWNSIDE OF PRODUCTIVITYLED GROWTH IN MANUFACTURING IS SLOW EMPLOYMENT THE UPSIDE IS LOW INFLATION PRICES FELL FOR THE SECOND STRAIGHT MONTH IN OCTOBER ACCORDING TO THE INDEX SEPARATELY THE COMMERCE DEPARTMENT REPORTED THAT NEW CONSTRUCTION SPENDING AFTER ADJUSTMENT FOR INFLATION ROSE 07 IN SEPTEMBER AFTER REVISED INCREASES OF 02 IN AUGUST AND 09 IN JULY IT WAS THE FIFTH CONSECUTIVE MONTHLY INCREASE THE FIRST FIVEMONTH INCREASE SINCE THE BEGINNING OF 1987 MR STEINBERG SAID LOW INTEREST RATES SEEM TO HAVE FINALLY STIMULATED THE STRING OF SPENDING INCREASES IN THE CONSTRUCTION SECTOR OUTLAYS FOR RESIDENTIAL AND PUBLIC CONSTRUCTION PROJECTS BOTH INCREASED COMMERCIAL REAL ESTATE HOWEVER WHICH IS STILL PLAGUED BY OVERBUILDING AND HIGH VACANCY RATES FELL ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S FIGURES FOR CONSTRUCTION SPENDING IN BILLIONS OF DOLLARS AT SEASONALLY ADJUSTED ANNUAL RATES 9311020147 931102 WHO'S NEWS ANNTAYLOR STORES CORP ANNTAYLOR STORES CORP NEW YORK CRAIG B SORRELS 38 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT REAL ESTATE STORE PLANNING AND CONSTRUCTION A NEW POSITION AT THE ANNTAYLOR UNIT OF THIS WOMEN'S FASHION RETAILER MR SORRELS PREVIOUSLY SENIOR VICE PRESIDENT OF DEVELOPMENT AND BUSINESS STRATEGY FOR DISNEY STORES INC A UNIT OF WALT DISNEY CO WILL ALSO BE A MEMBER OF THE ANNTAYLOR EXECUTIVE COMMITTEE 9311020146 931102 WHO'S NEWS SATELLITE TECHNOLOGY MANAGEMENT INC SATELLITE TECHNOLOGY MANAGEMENT INC COSTA MESA CALIF DENNIS W ELLIOTT WAS NAMED CHAIRMAN HE HAS BEEN A MEMBER OF THE COMPANY'S BOARD SINCE 1985 MR ELLIOTT 52YEAROLD PRESIDENT OF ELLIOTT COMMUNICATIONS CO SUCCEEDS FRANK T CONNORS WHO WILL CONTINUE AS ONE OF THE FIVE COMPANY DIRECTORS EMIL YOUSSEFZADEH CONTINUES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE MAKER OF SATELLITE COMMUNICATIONS NETWORKS 9311020145 931102 RATE ON SAVINGS BONDS IS LOWERED TO 425 WASHINGTON THE TREASURY LOWERED THE INTEREST RATE ON SERIES EE SAVINGS BONDS TO 425 FROM 478 REFLECTING DECLINING INTEREST RATES IN FINANCIAL MARKETS THE RATE ADJUSTED EACH MAY 1 AND NOV 1 IS EQUAL TO 85 OF THE AVERAGE MARKET YIELD DURING THE PRECEDING SIX MONTHS ON TREASURY SECURITIES WITH FIVE YEARS REMAINING TO MATURITY NEWLY ISSUED SAVINGS BONDS EARN EITHER THE MARKETBASED INTEREST RATE OR 4 WHICHEVER IS HIGHER PROVIDED THEY ARE HELD FOR AT LEAST FIVE YEARS THE CLINTON ADMINISTRATION LOWERED THE MINIMUM RATE TO 4 FROM 6 EARLIER THIS YEAR 9311020144 931102 INTERNATIONAL VOLVO POSTPONES VOTE ON MERGER WITH RENAULT BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM SCRAMBLING TO HEAD OFF A SHAREHOLDER REBELLION THAT IS THREATENING TO SCUTTLE ITS PROPOSED MERGER WITH RENAULT SA AB VOLVO DIRECTORS POSTPONED FOR ONE MONTH A SPECIAL HOLDERS MEETING THE MEETING AT WHICH SHAREHOLDERS WILL VOTE ON THE MARRIAGE PROPOSAL NOW WILL TAKE PLACE DEC 7 RATHER THAN NOV 9 VOLVO'S CHIEF EXECUTIVE OFFICER SOEREN GYLL SAID THE DELAY WILL ALLOW VOLVO MANAGEMENT TIME TO CLARIFY CERTAIN CONTROVERSIAL PARTS OF THE PLAN TO MERGE THE SWEDISH COMPANY'S CAR AND TRUCK DIVISION WITH RENAULT SHAREHOLDERS HAVE POSED SOME VERY SPECIFIC QUESTIONS IN PARTICULAR CONCERNING THE FRENCH GOVERNMENT'S PLANS TO PRIVATIZE RENAULT AND THE GOLDEN SHARE THE GOVERNMENT WILL RETAIN EVEN AFTER PRIVATIZATION MR GYLL SAID POSTPONEMENT OF THE VOTE SEEMED INCREASINGLY LIKELY AFTER TWO BIG INSTITUTIONAL OWNERS LAST WEEK DISCLOSED THEIR OPPOSITION TO THE MERGER PROPOSAL ONE BIG SWEDISH INSURER JOINED THE DISSENTING GROUP YESTERDAY AND SEVERAL OTHER MAJOR VOLVO SHAREHOLDERS WERE EXPECTED TO FOLLOW SUIT THIS WEEK ALLAYING SHAREHOLDERS' OBJECTIONS TO THE GOLDEN SHARE COULD BE DIFFICULT THOUGH THE GOLDEN SHARE IS PRIMARILY A GUARANTEE AGAINST HOSTILE TAKEOVER OF VOLVORENAULT RVA AS THE MERGED ENTITY WOULD BE CALLED THE FRENCH GOVERNMENT ALSO COULD USE THE POWER TO FORCE VOLVO TO REDUCE ITS REAULTVOLVO STAKE TO 20 FROM THE INITIAL 35 THAT THE SWEDISH CONCERN WOULD RECEIVE ALREADY BRISTLING OVER HAVING TO CEDE CONTROL OF RENAULTVOLVO TO FRENCH INTERESTS MANY OF VOLVO'S MAJOR SHAREHOLDERS ADAMANTLY OPPOSE ANY FURTHER DILUTION OF SWEDISH INFLUENCE OVER THE NEW AUTO GROUP MEANWHILE VOLVO CHIEF FINANCIAL OFFICER JAN ENGSTROEM LAST WEEK URGED THE FRENCH GOVERNMENT TO OFFER A SPECIFIC TIMETABLE FOR PRIVATIZATION OF RENAULT AND PERHAPS SPEED UP PRIVATIZATION PLANS TO COINCIDE WITH COMPLETION OF THE MERGER SOMETIME NEXT YEAR HOWEVER MANY ANALYSTS INSIST SUCH A MAJOR CONCESSION FROM PARIS IS POLITICALLY UNFEASIBLE 9311020143 931102 FORUM IS PLANNED ON POLITICAL GIFTS BY SECURITIES FIRMS WASHINGTON THE PUBLIC SECURITIES ASSOCIATION WILL HOST A NOV 17 FORUM IN CHICAGO FOR SENIOR MANAGERS OF REGIONAL SECURITIES FIRMS TO DISCUSS A PROGRAM OF VOLUNTARY RESTRAINT ON POLITICAL GIFTS TO STATE AND LOCAL OFFICIALS THE VOLUNTARY PROGRAM UNVEILED LAST MONTH BY 17 LARGE WALL STREET BOND HOUSES IS INTENDED TO END THE MUNICIPAL BOND MARKET PRACTICE KNOWN AS PAY TO PLAY IN WHICH POLITICAL CONTRIBUTIONS ARE USED TO OBTAIN AND RETAIN BUSINESS THE PSA WAS AMONG THE GROUPS ASKED BY SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT TO ENCOURAGE MEMBERS TO EMBRACE THE VOLUNTARY RESTRAINT PRINCIPLES ADOPTED BY THE 17 FIRMS INVITATIONS TO THE NOV 17 SESSION ARE BEING SENT BY THE PSA TO CHIEF EXECUTIVE OFFICERS AND HEADS OF FIXEDINCOME PUBLICFINANCE AND LEGALCOMPLIANCE DEPARTMENTS AT REGIONAL FIRMS NATIONWIDE THE PSA SAID THE BONDTRADE GROUP SAID THE CHICAGO FORUM WILL BE DESIGNED TO REVIEW THE SPECIFICS AND RAMIFICATIONS OF THE VOLUNTARY INITIATIVE AFTER THE MEETING EACH FIRM WILL DECIDE FOR ITSELF WHETHER TO ESTABLISH OR ENDORSE SUCH PRINCIPLES 9311020142 931102 WHO'S NEWS DYNAMICS RESEARCH CORP DYNAMICS RESEARCH CORP WILMINGTON MASS DOUGLAS R POTTER WAS NAMED VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER OF THIS PROVIDER OF TECHNICAL SERVICES TO THE DEPARTMENT OF DEFENSE MR POTTER 43 SUCCEEDS THOMAS P GRAHAM WHO LEFT THE COMPANY EARLIER THIS YEAR TO PURSUE OTHER INTERESTS MR POTTER HAD BEEN VICE PRESIDENT TREASURER AND CHIEF FINANCIAL OFFICER AT SOFTECH INC 9311020141 931102 MARTIN MARIETTA GETS ARMY JOB BETHESDA MD MARTIN MARIETTA CORP'S ASTRONAUTICS UNIT HAS BEEN AWARDED A 1152 MILLION CONTRACT BY THE US ARMY'S COMMUNICATIONS ELECTRONICS COMMAND TO DEVELOP THE ALL SOURCE ANALYSIS SYSTEM BLOCK II TACTICAL MILITARY INTELLIGENCE SYSTEM THE SIXYEAR CONTRACT CALLS FOR DELIVERY OF PROTOTYPE INTELLIGENCE FUSION SYSTEMS CONSISTING OF COMPUTERS AND SOFTWARE THE SYSTEMS DESIGNED FOR USE IN MOBILE SHELTERS OR TENTS ON THE BATTLEFIELD WILL ALLOW USERS TO RECEIVE AND PROCESS INTELLIGENCE DATA FROM VARIOUS SOURCES AND SENSORS 9311020140 931102 MAAX AGREES TO A PURCHASE SAINTEMARIEDEBEAUCE QUEBEC MAAX INC SAID IT HAS CONCLUDED AN AGREEMENT IN PRINCIPLE TO ACQUIRE ALL THE ASSETS OF HESSCO INDUSTRIES A WHEELING W VA MAKER OF BATHROOM ACRYLIC PRODUCTS MAAX SAID IT WILL PAY US5 MILLION ON THE PROJECTED CLOSING DATE OF JAN 14 PLUS 300000 COMMON SHARES IT SAID AN ADDITIONAL 1 MILLION CASH PAYMENT WILL BE MADE 12 MONTHS AFTER THE CLOSING DATE MAAX SAID HESSCO HAS ANNUAL SALES VOLUME OF 17 MILLION WITH AN OPERATING PROFIT OF MORE THAN 3 MILLION 9311020139 931102 ALBERTA ENERGY CO CALGARY ALBERTA THE ALBERTA GOVERNMENT REPEALED LEGISLATION THAT HAD IMPOSED A 10 CAP ON NONCANADIAN OWNERSHIP OF ALBERTA ENERGY CO AND A 5 LIMIT ON INDIVIDUAL INVESTORS' HOLDINGS THE CALGARY RESOURCES COMPANY SAID THAT REMOVAL OF THE SHAREOWNERSHIP RESTRICTIONS PLACES IT IN THE SAME CATEGORY AS OTHER FULLY PUBLIC COMPANIES OPERATING IN CANADA IT SAID THE ALBERTA GOVERNMENT ALSO RESCINDED ITS PREVIOUS RIGHT TO APPOINT AS MANY AS FOUR OF THE COMPANY'S 10 DIRECTORS THE ALBERTA GOVERNMENT SOLD ITS FORMER 358 INTEREST IN ALBERTA ENERGY IN APRIL 9311020138 931102 WHO'S NEWS ANTHEM ELECTRONICS INC ANTHEM ELECTRONICS INC SAN JOSE CALIF PEYTON L GANNAWAY 54 YEARS OLD SAID HE WILL RETIRE IN JANUARY AS PRESIDENT AND CHIEF OPERATING OFFICER OF THIS DISTRIBUTOR OF COMPUTER PRODUCTS ROBERT S THROOP 56 CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL ASSUME ALL OF MR GANNAWAY'S RESPONSIBILITIES AND INDICATED THAT THE POSITIONS OF PRESIDENT AND CHIEF OPERATING OFFICER WOULD BE ELIMINATED MR GANNAWAY WHO WILL REMAIN A DIRECTOR SAID HE WAS LEAVING THE COMPANY TO PURSUE OTHER INTERESTS HE HAD BEEN PRESIDENT AND OPERATING CHIEF SINCE 1984 9311020137 931102 INTERNATIONAL KOBE STEEL SLATES EXPANSION TOKYO JAPAN'S KOBE STEEL LTD PLANS TO OPEN AN OFFICE IN HONG KONG JAN 1 TO SERVICE ITS CUSTOMERS IN CHINA HONG KONG AND TAIWAN THE COMPANY SAID THE STEELMAKER SAID IT PARTICULARLY HOPES TO IMPROVE BUSINESS OPERATIONS IN SOUTHERN CHINA IN LIGHT OF THE POTENTIALLY HUGE MARKET THERE FOR FOREIGN COMPANIES 9311020136 931102 INTERNATIONAL HONG KONG RETAIL SALES UP HONG KONG HONG KONG RETAIL SALES ROSE 11 IN AUGUST FROM A YEAR EARLIER TO 161 BILLION HONG KONG DOLLARS US208 BILLION ACCORDING TO GOVERNMENTRELEASED FIGURES THE DATA INDICATED A STRONG GROWTH IN SPENDING ON CLOTHING AND FOOTWEAR BUT THE INCREASE WAS OFFSET TO A CONSIDERABLE EXTENT BY A DECLINE IN SPENDING ON MOTOR VEHICLES AND JEWELERY AND WATCHES 9311020135 931102 EASTERN'S BOSTON GAS RATE RISE WESTON MASS EASTERN ENTERPRISES SAID ITS BOSTON GAS CO UNIT RECEIVED A 39 MILLION OR 66 RATE INCREASE FROM THE MASSACHUSETTS DEPARTMENT OF PUBLIC UTILITIES BOSTON GAS WHICH HAD REQUESTED AN INCREASE OF 619 MILLION OR ABOUT 10 SAID THE NEW RATES BECAME EFFECTIVE YESTERDAY EASTERN ENTERPRISES ALSO OWNS A BARGE OPERATION AND A WATER AND WASTEWATER SYSTEM COMPONENTS CONCERN AND HAS ABOUT 11 BILLION IN ANNUAL REVENUE 9311020134 931102 ECONOMY MOST OILEXPORTING NATIONS ARE STICKING TO NEW PRODUCTION QUOTAS REPORTS SAY BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL INITIAL REPORTS ON OPEC'S PRODUCTION FOR OCTOBER CONFIRMED THAT MOST OF THE OIL EXPORTERS ARE STICKING TO THEIR NEW QUOTAS ALTHOUGH TOTAL CRUDE OIL VOLUMES WERE ABOVE THE FOURTHQUARTER CEILING OF 245 MILLION BARRELS A DAY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES PRODUCED LESS LAST MONTH THAN IN SEPTEMBER LEADING MONITORS OF OPEC'S OUTPUT REPORTED OIL PRICES SURGED AS A RESULT MANY IN THE OIL MARKET HAD EXPECTED THE FIRST HARD NUMBERS ON OCTOBER PRODUCTION TO SHOW AN INCREASE UNDERSCORING YET ANOTHER FAILURE BY THE OIL EXPORTERS TO CURB THEIR OVERPRODUCTION ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR DECEMBER DELIVERY WAS UP 51 CENTS A BARREL TO SETTLE AT 1743 ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE BRENT BLEND CRUDE FUTURES CLOSED 35 CENTS TO 42 CENTS A BARREL HIGHER YESTERDAY'S GAINS HELPED CRUDE OIL FUTURES RECOVER MUCH OF THE GROUND LOST LAST WEEK WHEN PRICES PLUNGED BECAUSE OF CONCERNS ABOUT OVERSUPPLY THE STEEPEST ONEDAY FALL WAS ON FRIDAY AND WAS TRIGGERED BY RUMORS IN THE INDUSTRY THAT PETROLEUM INTELLIGENCE WEEKLY OR PIW WOULD REPORT OPEC PRODUCED 25 MILLION BARRELS A DAY IN OCTOBER PIW A LEADING OIL PUBLICATION DID ESTIMATE IN YESTERDAY'S EDITION THAT OPEC PRODUCED 249 MILLION BARRELS A DAY LAST MONTH HOWEVER PIW NOTED THAT ITS OCTOBER FIGURE WAS DOWN 200000 BARRELS A DAY FROM ITS ESTIMATE OF 251 MILLION BARRELS A DAY FOR SEPTEMBER ALSO PIW SAID THAT HALF THE OVERPRODUCTION AS MEASURED AGAINST THE FOURTHQUARTER CEILING OF 245 MILLION BARRELS A DAY IS IN IRAQ AND THEREFORE UNAVAILABLE TO MARKETS BECAUSE OF THE UNITED NATIONS BAN AGAINST IRAQI OIL EXPORTS ALSO CITING IRAQ LAWRENCE GOLDSTEIN PRESIDENT OF PETROLEUM INDUSTRY RESEARCH FOUNDATION ESTIMATED OPEC'S OCTOBER PRODUCTION AT BETWEEN 247 MILLION AND 248 MILLION BARRELS A DAY IRAQ HAS REFUSED TO ACCEPT A PRODUCTION ALLOCATION BECAUSE OF THE UN SANCTIONS BUT IS CARRIED ON OPEC'S BOOKS WITH A QUOTA OF 400000 BARRELS A DAY THE LATEST ESTIMATES OF ITS ACTUAL OUTPUT RANGED BETWEEN 500000 AND 600000 BARRELS A DAY MR GOLDSTEIN SUGGESTED THAT THE ADDITIONAL OIL BEING PRODUCED BY IRAQ DOESN'T ALTER THE SUPPLYDEMAND BALANCE FOR THE INDUSTRY HE SAID THE EXTRA OIL IS BEING USED INTERNALLY BY IRAQ AS A FUEL SUBSTITUTE FOR NATURAL GAS ALTHOUGH THIS INCREASES WORLD OIL SUPPLIES IT ALSO INCREASES WORLD OIL DEMAND A LIKE AMOUNT THE INTERNATIONAL ENERGY AGENCY WON'T RELEASE ITS OPEC FIGURES FOR OCTOBER UNTIL FRIDAY WHEN IT ISSUES ITS MONTHLY OIL MARKET REPORT BUT YESTERDAY OTHER APPRAISALS OF OPEC'S OCTOBER PRODUCTION RANGED BETWEEN 248 MILLION BARRELS A DAY FROM A SURVEY BY DOW JONES INTERNATIONAL PETROLEUM REPORT AND 246 MILLION A DAY AS ESTIMATED BY ENERGY SECURITY ANALYSIS INC ALL THE OCTOBER ASSESSMENTS SHOW DECLINES FROM PREVIOUSLY REPORTED FIGURES FOR OPEC'S SEPTEMBER PRODUCTION 100000 BARRELS A DAY IN THE DOW JONES ESTIMATE AND 400000 BARRELS A DAY AS REPORTED BY ENERGY SECURITY ANALYSIS ACCORDING TO THE DOW JONES SURVEY A FEW COUNTRIES PRODUCED MODESTLY ABOVE THEIR QUOTAS IN OCTOBER WHILE THERE WERE PRODUCTION DROPS FOR THE MONTH IN SAUDI ARABIA AND KUWAIT ENERGY SECURITY ANALYSIS A WASHINGTONBASED FIRM THAT MONITORS OIL SUPPLIES WORLDWIDE REPORTED DECLINES IN OCTOBER OF 200000 BARRELS A DAY IN SAUDI ARABIA 150000 BARRELS A DAY IN IRAN AND 100000 A DAY IN KUWAIT OPEC APPEARS TO BE DOING WHAT IT VOWED TO DO KEEP PRODUCTION UNDER 25 MILLION BARRELS A DAY SAID EDWARD KRAPELS PRESIDENT OF ENERGY SECURITY 9311020133 931102 MASSACHUSETTS BLUE CROSS'S EXPECTED CUT IN INFUSION COSTS SHOWS INSURERS' CLOUT BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON BLUE CROSS & BLUE SHIELD OF MASSACHUSETTS SAID IT EXPECTS TO SLASH ITS EXPENSES FOR HOMEINFUSION THERAPY BY 50 AFTER STATE COURTS DENIED A BID BY THREE INFUSION COMPANIES TO BLOCK THE BIG INSURER'S COSTCUTTING PLAN ANALYSTS SAID THE BLUE CROSS CASE IS A STRIKING EXAMPLE OF WHAT BIG DISCOUNTS HEALTHINSURANCE CONCERNS CAN FETCH BY WIELDING THEIR BUYING CLOUT THEY ALSO SAID BLUE CROSS'S WIN IN COURT EARLIER THIS FALL IS A FURTHER SIGN THAT BIG INSURERS ARE PREVAILING IN A TUG OF WAR WITH HOMEINFUSION COMPANIES THE HOMEINFUSION INDUSTRY WHICH HAS 4 BILLION IN ANNUAL SALES WAS KNOWN UNTIL ABOUT TWO YEARS AGO AS ONE OF THE FASTESTGROWING MOST PROFITABLE SPECIALTY MEDICAL SERVICES IN THE US A HOST OF COMPANIES SPRANG UP TO DELIVER CHEMOTHERAPY INTRAVENOUS FEEDING AND OTHER MEDICAL SERVICES IN PATIENTS' HOMES INSURERS INITIALLY WELCOMED THESE SERVICES BECAUSE THE CHARGES OF ROUGHLY 400 A DAY WERE FAR CHEAPER THAN THE 1000 A DAY THAT IT MIGHT COST TO TREAT SUCH PATIENTS IN HOSPITALS SINCE 1991 THOUGH INSURERS HAVE PRESSED HOMEINFUSION COMPANIES TO CUT THEIR RATES ON THE BELIEF THAT HOME THERAPY CAN BE PROVIDED PROFITABLY AT MUCH LOWER PRICES IN MOST CASES THE INSURERS HAVE OBTAINED AT LEAST MODEST DISCOUNTS I'D SAY THAT 80 OF COMMERCIAL INSURANCE BUSINESS IN HOME INFUSION IS NOW BEING DONE AT NEGOTIATED RATES SAYS RANDALL HUYSER AN ANALYST AT FURMAN SELZ INC LAST YEAR MASSACHUSETTS BLUE CROSS TRIED TO PUT MUCH DEEPER DISCOUNTS IN PLACE IT GOT BIDS FROM 13 HOMEINFUSION COMPANIES WILLING TO PROVIDE SERVICES AT APPROXIMATELY HALF THE GOING RATES AND SAID IT PLANNED TO PAY ONLY FOR TREATMENT PROVIDED BY THOSE CONCERNS THAT UPSET THREE MAJOR COMPETITORS THAT WEREN'T IN THE NEW NETWORK THEY TOOK MASSACHUSETTS BLUE CROSS TO COURT TRYING TO PREVENT THE FORMATION OF THE NETWORK INITIALLY THE COMPETITORS LED BY CRITICAL CARE AMERICA INC A UNIT OF MEDICAL CARE AMERICA INC WON A PRELIMINARY INJUNCTION AGAINST THE NETWORK IN MASSACHUSETTS STATE COURT BUT THIS SUMMER A STATE COURT JUDGE RULED THAT THE INJUNCTION SHOULD BE LIFTED IN A DECISION DATED SEPT 22 A STATE APPEALS COURT REJECTED CRITICAL CARE'S ATTEMPT TO KEEP THE INJUNCTION IN FORCE EXECUTIVES AT MEDICAL CARE AND CRITICAL CARE DIDN'T RETURN PHONE CALLS YESTERDAY BUT MASSACHUSETTS BLUE CROSS'S GENERAL COUNSEL EDWARD DAILEY SAID HE DOESN'T EXPECT FURTHER LEGAL CHALLENGES TO THE FORMATION OF THE CUTPRICE NETWORK HE ADDED THAT BLUE CROSS PLANS TO PUT ITS DISCOUNT NETWORK IN PLACE NOV 15 MASSACHUSETTS BLUE CROSS SAID IT EXPECTS ITS YEARLY HOMEINFUSION OUTLAYS FOR ITS 24 MILLION MEMBERS WILL DROP TO ABOUT 10 MILLION FROM 20 MILLION OFFICIALS SAID THAT WITH THE NEW NETWORK IN PLACE SERVICES SUCH AS FEEDING A PATIENT ENTIRELY BY TUBE WILL COST THE INSURER ABOUT 295 A DAY DOWN FROM THE PREVIOUS 470 A DAY ADMINISTERING ANTIBIOTICS VIA CATHETER FOR PATIENTS RECOVERING FROM SURGERY WILL COST ABOUT 170 A DAY UNDER THE NEW SYSTEM DOWN FROM ABOUT 330 A DAY BEFORE IN RETURN FOR PROVIDING DISCOUNTS HOMEINFUSION PROVIDERS SUCH AS WR GRACE & CO CAREMARK INTERNATIONAL INC AND CLOSELY HELD CHARTWELL HOME HEALTH ARE BETTING THAT THEIR PARTICIPATION IN THE MASSACHUSETTS BLUE CROSS NETWORK WILL BRING THEM MORE PATIENTS OTHER INSURERS CAUTIONED THAT THEY AREN'T PICKING HOMEINFUSION PROVIDERS ON THE BASIS OF COST ALONE BUT WHEN QUALITY MEASURES ARE EQUAL A SPOKESMAN FOR PRUDENTIAL INSURANCE CO OF AMERICA SAID COST BECOMES A DECIDING FACTOR 9311020132 931102 WHO'S NEWS QUADREX'S HAMMER RESIGNS AS PRESIDENT CHIEF OPERATING OFFICER GAINESVILLE FLA QUADREX CORP SAID RUSSELL J HAMMER 40 YEARS OLD RESIGNED AS PRESIDENT AND CHIEF OPERATING OFFICER IN A STATEMENT MR HAMMER SAID HE RESIGNED SO RECENTLY APPOINTED CHIEF EXECUTIVE OFFICER VINCE SCHOEMEHL CAN APPOINT HIS OWN MANAGEMENT TEAM MR HAMMER COULDN'T BE REACHED FOR FURTHER COMMENT LAST MONTH QUADREX'S CHAIRMAN AND CHIEF EXECUTIVE WILLIAM B DERRICKSON RESIGNED THE COMPANY HAS BEEN PLAGUED BY PROBLEMS IN MARKETING ITS PROCESS FOR TURNING WASTE INTO ETHANOL FUEL MR HAMMER WAS ACTING CEO UNTIL MR SCHOEMEHL WAS HIRED TWO WEEKS AGO MR HAMMER WHO WILL REMAIN A DIRECTOR HAS AGREED TO SERVE AS A CONSULTANT TO THE COMPANY AND IS NEGOTIATING A CONTRACT TO DEVELOP ETHANOL PLANTS IN THE WESTERN US 9311020131 931102 WHO'S NEWS MEAD CORP MEAD CORP DAYTON OHIO WILLIAM R GRABER 50 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER AND VICE PRESIDENT OF THIS FOREST PRODUCTS AND ELECTRONIC PUBLISHING COMPANY MR GRABER WILL SUCCEED WILLIAM A ENOUEN 64 AS CHIEF FINANCIAL OFFICER ON DEC 1 GREGORY T GESWEIN 38 ASSISTANT TREASURER OF MEAD WILL SUCCEED MR GRABER AS TREASURER ALSO WILLIAM E HOGLUND 59 EXECUTIVE VICE PRESIDENT OF GENERAL MOTORS CORP WAS ELECTED A DIRECTOR MAKING THE TOTAL NUMBER OF BOARD MEMBERS 12 9311020130 931102 COMERICA INC UNIT PURCHASE HOUSTON COMERICA BANKTEXAS A UNIT OF COMERICA INC SAID IT COMPLETED A MERGER WITH SUGAR CREEK NATIONAL BANK A 16YEAROLD FINANCIAL INSTITUTION HERE COMERICA ACQUIRED THE BANK FOR ABOUT 275 MILLION OF COMERICA COMMON STOCK COMERICA SAID SUGAR CREEK BANK ASSETS EXCEED 200 MILLION COMERICA BANKTEXAS HAS COMBINED ASSETS OF MORE THAN 3 BILLION A COMPANY SPOKESWOMAN SAID THERE WERE NO LAYOFFS OR BRANCH CLOSINGS 9311020129 931102 GENCORP PLANS MORE CUTS FAIRLAWN OHIO GENCORP INC SAID IT WILL MAKE ADDITIONAL WORK FORCE CUTS IN ITS AEROSPACE ORDNANCE DIVISION AEROJET TO OFFSET DECLINES IN THE US DEFENSE BUDGET THE COMPANY REDUCED ITS AEROJET WORK FORCE BY ONETHIRD IN THE PAST 18 MONTHS AND WILL CUT AN ADDITIONAL 200 MANAGEMENT POSITIONS DURING THE NEXT FEW MONTHS SAID A WILLIAM REYNOLDS GENCORP CHAIRMAN AND CHIEF EXECUTIVE OFFICER AEROJET MAKES MUNITIONS SYSTEMS AND AMMUNITION FOR THE AEROSPACE INDUSTRY EARLIER GENCORP ANNOUNCED NEGOTIATIONS TO SELL PORTIONS OF THE AEROJET ASSETS TO STAMFORD CONNBASED OLIN CORP 9311020128 931102 STEEL PRODUCTION ROSE 05 IN LATEST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 05 LAST WEEK TO 1910000 TONS FROM 1901000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 10 FROM THE 1735000 TONS PRODUCED IN THE YEAREARLIER WEEK THE INDUSTRY USED 91 OF ITS CAPABILITY LAST WEEK COMPARED WITH 80 THE PREVIOUS WEEK AND A YEAREARLIER 81 THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9311020127 931102 WHO'S NEWS PERRY DRUG STORES INC PERRY DRUG STORES INC PONTIAC MICH ANDREA GIANCAMILLI 43 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE DRUGSTORE CHAIN AS PRESIDENT SHE SUCCEEDS JACK A ROBINSON WHO RETAINS THE POSTS OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER ROBERT A BERLOW 46 YEARS OLD SENIOR VICE PRESIDENT AND GENERAL COUNSEL WAS NAMED TO THE ADDITIONAL POST OF CHIEF ADMINISTRATIVE OFFICER 9311020126 931102 CALIFORNIA IS ACCORDED A NEW TITLE AND IS MILKING IT TO THE LAST DROP BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL WISCONSIN THAT VERDANT LAND OF CHEESEFACTORY TOURS BUTTER SCULPTURES AND TOWERING PLASTIC COWS IS LOSING ITS GRIP ON THE MILKING TITLE IT HAS HELD SINCE WORLD WAR I SINCE AUGUST CALIFORNIA'S COWS HAVE OUTLACTATED THEIR WISCONSIN RIVALS ON A MONTHLY BASIS BUT WISCONSIN WHICH TOUTS ITSELF ON LICENSE PLATES AS AMERICA'S DAIRYLAND ISN'T IF YOU WILL COWED STATE OFFICIALS STRESS THAT WISCONSIN STILL HAS THE MOST DAIRY FARMS 29000 AND BOVINES 154 MILLION AND MAKES THE MOST CHEESE AND BUTTER CERTAINLY IT LOOKS NICE TO BE NO 1 SAYS CHRIS KOLASA WHOSE FAMILY MILKS 45 HOLSTEIN COWS NEAR GILMAN WIS BUT THIS IS STILL THE HEART OF DAIRY INDEED EACH YEAR WISCONSIN ANOINTS A YOUNG WOMAN TO REIGN AS ALICE IN DAIRYLAND A SORT OF GOODWILL AMBASSADOR TOURISTS STILL TREK TO NEILLSVILLE TO SEE A PLASTICFOAM REPLICA OF THE 17TON BLOCK OF CHEDDAR CHEESE THAT GRACED THE 1964 NEW YORK WORLD'S FAIR PLANS ARE MOVING AHEAD TO BUILD A WORLD DAIRY CENTER OFFICE PARK NEAR MADISON WISCONSIN FARMERS ATTRIBUTE THE UPSET TO RECORD MIDWEST SUMMER RAINS WHICH STUNTED THE CROPS THAT NOURISH THEIR HERDS BUT A NEW CHAMPION WAS INEVITABLE CALIFORNIA'S MILK PRODUCTION HAS SWELLED ABOUT 63 SINCE 1980 WHILE WISCONSIN'S HAS STAGNATED THIS YEAR THE STATES WILL TIE WITH ROUGHLY 23 BILLION POUNDS OF MILK EACH MOST ECONOMISTS EXPECT THE GOLDEN STATE TO CLAIM THE NO 1 SPOT FOR THE ENTIRE YEAR IN 1994 WHILE THE TYPICAL WISCONSIN DAIRY FARMER DABBLES IN GRAIN THE CALIFORNIA MILK PRODUCER IS ALL COW MANY HERDS AVERAGE ABOUT 500 COWS 10 TIMES AS BIG AS WISCONSIN'S CALIFORNIA COWS HAVE THE ADVANTAGE OF MILDER WINTERS BUT THEY WORK HARDER AND ARE MADE INTO HAMBURGER SOONER CALIFORNIA STATE LEGISLATOR AND DAIRY FARMER RUSTY AREIAS SAYS HE PLANS A CONGRATULATORY PROCLAMATION ABOUT THE MILK TITLE WHEN THE STATE ASSEMBLY MEETS THIS WINTER BUT DON'T EXPECT CALIFORNIA TO DEVELOP THE HERD MENTALITY THAT PERMEATES WISCONSIN IN WISCONSIN DAIRY IS A WAY OF LIFE SAYS MR AREIAS HERE IN CALIFORNIA DAIRY IS A BUSINESS MEANWHILE SOME YOUNG WISCONSIN FARMERS ARE ADOPTING CALIFORNIA'S HIGHVOLUME TECHNIQUES WE'LL BE BACK PROMISES ROBERT CROPP A UNIVERSITY OF WISCONSIN DAIRY SPECIALIST 9311020124 931102 TECHNOLOGY & HEALTH PACIFIC TELESIS TO TRY AGAIN TO PERSUADE REGULATORS TO APPROVE CELLULAR SPINOFF BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PACIFIC TELESIS GROUP HOPES TO CLEAR A CRITICAL HURDLE TODAY IN ITS PLAN TO SPIN OFF ITS CELLULAR BUSINESS AND SELL A SMALL PART OF IT IN A 12 BILLION PUBLIC OFFERING PACTEL A REGIONAL BELL COMPANY HOPES TO PERSUADE THE CALIFORNIA STATE PUBLIC UTILITIES COMMISSION TO GIVE ITS BLESSING TO THE SPINOFF YET ON THREE PREVIOUS OCCASIONS THE COMMISSION HAS WITHHELD APPROVAL ARGUING PACTEL SHOULD HAVE TO REFUND 1 BILLION OR MORE TO CALIFORNIA CUSTOMERS FOR THE SPINOFF TO GO THROUGH THE COMMISSION COULD DELAY THE SPINOFF YET AGAIN BY REFUSING TO ACT ON THE PACTEL REQUEST TODAY ASKED WHETHER THE STATE REGULATORS MIGHT FINALLY APPROVE THE SPINOFF PLAN A PACTEL SPOKESMAN SAID I WOULDN'T PUT MONEY ON IT EITHER WAY ALMOST A YEAR AGO ALMOST AS A COURTESY PACTEL ASKED THE STATE'S FIVEMEMBER COMMISSION FOR ITS BLESSING FOR THE SPINOFF IN WHICH PACTEL HOPES TO RAISE 12 BILLION IN A PUBLIC OFFERING OF JUST A 12 STAKE NEVER MIND THAT PACTEL DOUBTS THE COMMISSION HAD THE LEGAL AUTHORITY TO BLOCK THE SPINOFF AND EVEN A PANEL MEMBER HAS EXPRESSED SIMILAR RESERVATIONS STATE OFFICIALS AND CONSUMER ADVOCATES ARGUE THAT CUSTOMERS OF PACTEL WHICH PROVIDES LOCAL PHONE SERVICE TO CALIFORNIA AND NEVADA HELPED FUND THE DEVELOPMENT OF THE CELLULAR OPERATIONS THAT PACTEL NOW WANTS TO SELL TO THE PUBLIC PACTEL THEREFORE SHOULD MAKE A HUGE REFUND TO CALIFORNIA RESIDENTS THE COMMISSION'S OWN CONSUMER ADVOCACY ARM MAINTAINS OTHER CONSUMER GROUPS HAVE PRIVATELY DEMANDED UPWARD OF 5 BILLION FROM THE REGIONAL PHONE COMPANY PACTEL COUNTERS THAT VIRTUALLY NO PAYMENT IS JUSTIFIED A DECADE AGO FEDERAL OFFICIALS DETERMINED HOW MUCH MONEY FROM CONSUMERS WENT INTO THE DEVELOPMENT OF CELLULAR SERVICE PACTEL'S SHARE WAS A MEAGER 79 MILLION SAYS ROBERT BARADA VICE PRESIDENT OF CORPORATE STRATEGY FOR PACTEL THE COMPANY HAS OPERATED ITS WIRELESS BUSINESSES SEPARATELY FROM THE LOCAL PHONE MONOPOLY SINCE THEN AND THEREFORE ISN'T OBLIGATED TO REFUND A DIME TO PACTEL'S CUSTOMERS THE COMPANY CONTENDS MR BARADA SAID OTHER STATES WOULD BE AGHAST TO FIND CALIFORNIA REGULATORS IMPOSING A BIG CONSUMER REFUND WHEN THE LEGAL AUTHORITY FOR SUCH ACTION IS QUESTIONABLE DESPITE TAKING THAT STANCE PACTEL HAS OFFERED A SETTLEMENT OF LESS THAN 100 MILLION ACCORDING TO COMMISSION OFFICIALS ALTHOUGH THE COMPANY WON'T COMMENT WE'RE STILL FAR APART ON A FIGURE SAID ED TEXEIRA DIRECTOR OF THE COMMISSION'S DIVISION OF RATEPAYER ADVOCACY WHICH REPRESENTS THE INTERESTS OF CONSUMERS THE STATE'S REGULATORS CLAIM THEY CAN HOLD SWAY OVER PACTEL'S SPINOFF PROPOSAL BECAUSE OF A BROAD STATUTE THAT GIVES THEM AUTHORITY TO REVIEW PROPOSALS THAT MAY NEGATIVELY AFFECT A UTILITY OR ITS CUSTOMERS PACTEL COUNTERS THAT IT WASN'T ASKING FOR OUTRIGHT APPROVAL OF THE SPINOFF WHEN IT APPROACHED THE COMMISSION IN JANUARY IT MERELY WANTED A RULING STATING THAT THE SPINOFF DIDN'T CONSTITUTE A CHANGE OF CONTROL IN THE COMPANY THEREBY SMOOTHING THE WAY FOR THE STOCK OFFERING PACTEL'S CELLULAR BUSINESS WHICH HAS 723000 CUSTOMERS GENERATED SLIGHTLY MORE THAT 880 MILLION IN REVENUE OR 88 OF PACTEL'S TOTAL REVENUE LAST YEAR WHILE PROVIDING ONLY 2 OF THE COMPANY'S CASH FLOW THE REGIONAL BELL COMPANY IS EAGER TO GET ON WITH ITS PLANS AND TAKE ADVANTAGE OF THE CURRENT STRONG MARKET FOR INITIAL PUBLIC OFFERINGS PACTEL'S MR BARADA SAID THAT IS WHY PACTEL MAY ELECT TO PAY UP RATHER THAN FIGHT EVEN THOUGH SOME OBSERVERS DOUBT THE CALIFORNIA COMMISSION'S LEGAL AUTHORITY IN THIS DISPUTE IF THE BABY BELL REFUSES TO PROVIDE REFUNDS PUBLIC GROUPS WILL FILE LAWSUIT AFTER LAWSUIT AND HOLD IT UP FOREVER SAID CHARLES RONSON PUBLISHER OF THE SPINOFF REPORT AND A MONEY MANAGER AT BALESTRA CAPITAL NEW YORK ONE COMMISSION MEMBER NORMAN SHUMWAY A FORMER CALIFORNIA CONGRESSMAN HAS SIDED WITH PACTEL SAYING HE DOUBTS THE COMMISSION HAS LEGAL POWER OVER PACTEL'S PLANS THAT PACTEL SHOULDN'T BE OBLIGATED TO PAY CONSUMER REFUNDS NONETHELESS MR SHUMWAY SAID HE EXPECTS THE COMMISSION WILL ISSUE A FINAL RULING TODAY AND THAT PACTEL WILL WIND UP PAYING SOMETHING LESS THAN 100 MILLION BACK TO CONSUMERS IT'S BEEN A REAL PAIN IN THE NECK MR SHUMWAY SAID I'LL BE GLAD TO GET RID OF IT 9311020123 931102 MARKETING & MEDIA DAILY NEWS ACQUIRES CLOROX FACILITY TO USE AS NEW PRINTING PLANT NEW YORK THE NEW YORK DAILY NEWS SAID IT COMPLETED THE PURCHASE OF A JERSEY CITY NJ FACILITY FROM CLOROX CO THAT THE NEWSPAPER INTENDS TO CONVERT TO A FOURCOLOR PRINTING PLANT TERMS WEREN'T DISCLOSED BUT A DAILY NEWS SPOKESWOMAN PUT THE TOTAL COST OF PURCHASING REFURBISHING AND CONVERTING THE FACILITY AT 135 MILLION THE PARTIES BEGAN NEGOTIATING THE SALE IN JUNE THE TABLOID NEWSPAPER RESCUED FROM BANKRUPTCY A YEAR AGO BY PUBLISHER MORTIMER B ZUCKERMAN SAID IT EXPECTS TO BREAK GROUND ON THE FACILITY IN FEBRUARY AND TO BEGIN PRINTING THERE ABOUT TWO YEARS LATER THE NEW FACILITY WILL CONSOLIDATE PRINTING OPERATIONS NOW LOCATED IN BROOKLYN NY AND KEARNY NJ THE PAPER'S MAIN BUSINESS AND EDITORIAL OFFICES WILL REMAIN IN MANHATTAN UNTIL LAST MONTH CLOROX BASED IN OAKLAND CALIF USED THE FACILITY FOR PRODUCING AND DISTRIBUTING BLEACH AND HOUSEHOLD CLEANING PRODUCTS IT MOVED THOSE OPERATIONS TO ABERDEEN MD 9311020121 931102 BB&T COMPLETES ACQUISITION WILSON NC BB&T FINANCIAL CORP COMPLETED ITS ACQUISITION OF MUTUAL SAVINGS BANK OF ROCKINGHAM COUNTY IN REIDSVILLE NC THE TRANSACTION CALLS FOR MUTUAL SAVINGS TO CONVERT TO A STATECHARTERED STOCK SAVINGS BANK FROM A MUTUAL SAVINGS BANK BB&T SAID 216907 OF ITS COMMON SHARES WERE SOLD AND ISSUED IN CONNECTION WITH THE DEAL GIVING IT NET PROCEEDS OF ABOUT 62 MILLION 9311020120 931102 PRECISION SYSTEMS MCI IN PACT ST PETERSBURG FLA PRECISION SYSTEMS INC SAID IT ENTERED AN AGREEMENT WITH MCI COMMUNICATIONS CORP FOR A JOINTVENTURE SOFTWAREDEVELOPMENT PROGRAM THE COMPANY SAID THE PROGRAM IS EXPECTED TO GENERATE MORE THAN 1 MILLION IN REVENUE FOR PRECISION BY THE END OF THE YEAR 9311020119 931102 COMMUNITY FIRST BANKSHARES FARGO ND COMMUNITY FIRST BANKSHARES INC COMPLETED THE ACQUISITION OF RURAL AMERICAN BANK OF GREENWALD MINN TERMS WEREN'T DISCLOSED SUBJECT TO REGULATORY APPROVAL THE COMPANY SAID IT INTENDS TO MERGE RURAL AMERICAN NEXT YEAR WITH COMMUNITY FIRST STATE BANK OF PAYNESVILLE MINN TO CREATE A BANK WITH 52 MILLION IN ASSETS RURAL AMERICAN BANK HAS ASSETS OF 17 MILLION 9311020118 931102 HARSCO BUYS MEXICAN CONCERN HARRISBURG PA HARSCO CORP SAID IT ACQUIRED ELECTROFORJADOS NACIONALES SA A UNIT OF EMPRESAS ICA SOCIEDAD CONTROLADORA SA TERMS WEREN'T DISCLOSED HARSCO SAID ELECTROFORJADOS A MAKER OF STEEL AND FIBERGLASS PRODUCTS WITH SALES OF ABOUT 10 MILLION IN 1992 WILL BE INTEGRATED INTO ITS IKG INDUSTRIES DIVISION HARSCO SAID THE ACQUISITION IS PART OF ITS GOAL TO EXTEND ITS PRESENCE IN MEXICO ELECTROFORJADOS IS HARSCO'S NINTH LOCATION IN MEXICO THE COMPANY SAID 9311020117 931102 VALLEN UNIT BUYS SAFETY WORLD HOUSTON VALLEN CORP SAID ITS CANADIAN UNIT VALLEN SAFETY SUPPLY CO CLOSED ON THE PURCHASE OF THE SHARES OUTSTANDING OF SAFETY WORLD INC KINGSTON ONTARIO THE COMPANY WHICH DISTRIBUTES INDUSTRIAL SAFETY AND HEALTH PRODUCTS DIDN'T DISCLOSE TERMS OF THE TRANSACTION AND OFFICIALS WEREN'T AVAILABLE FOR COMMENT 9311020116 931102 COMMODITIES SILVER FUTURES PRICES TUMBLE IN COMEX TRADING ON NEWS OF XEROX'S SILVERLESS FILM TECHNOLOGY BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL SILVER FUTURES PRICES LED A BROAD ROUT IN PRECIOUSMETALS MARKETS AS TRADERS REACTED TO THE DEVELOPMENT OF A NEW SILVERLESS FILM TECHNOLOGY THAT POTENTIALLY COULD CURB INDUSTRIAL DEMAND FOR SILVER AT NEW YORK'S COMMODITY EXCHANGE SILVER FOR DECEMBER DELIVERY WAS DOWN 142 CENTS TO 4225 AN OUNCE WHILE THE ACTIVELY TRADED DECEMBER GOLD FUTURES CONTRACT FELL 750 TO 36210 AN OUNCE AT THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR JANUARY DELIVERY FELL 530 TO 36780 AN OUNCE THE CATALYST FOR YESTERDAY'S MARKET MOVEMENTS ANALYSTS SAID WAS AN ANNOUNCEMENT BY XEROX CORP THAT IT HAD DEVELOPED A NEW FILM TECHNOLOGY WHICH UNLIKE THE VAST MAJORITY OF ALL PHOTOGRAPHIC MATERIALS PRODUCED TODAY DOESN'T USE SILVER THE COMPANY SAID THE NEW PRODUCT WHICH IS EXPECTED TO BE MARKETED BEGINNING NEXT YEAR HAS APPLICATIONS IN THE FIELD OF GRAPHIC ARTS THE PHOTOGRAPHIC INDUSTRY ACCOUNTS FOR A BIG PERCENTAGE OF ALL INDUSTRIAL USE OF SILVER SAID BERNARD SAVAIKO ANALYST FOR PAINEWEBBER INC IN THE US FOR EXAMPLE USE OF SILVER FOR PHOTOGRAPHIC MATERIALS WAS 621 MILLION OUNCES IN 1992 MORE THAN HALF OF THE TOTAL US INDUSTRIAL SILVER USAGE OF 119 MILLION OUNCE MR SAVAIKO SAID JOHN LUTLE EXECUTIVE DIRECTOR OF THE SILVER INSTITUTE A SILVERINDUSTRY TRADE GROUP BASED IN WASHINGTON PLAYED DOWN THE LONGTERM MARKET IMPACT OF THE NEW XEROX TECHNOLOGY IT WILL HAVE SOME EFFECT ON SILVER PRICES MR LUTLE SAID BUT IT'S NOT GOING TO HAVE A MAJOR EFFECT MR LUTLE POINTED OUT THAT WORLDWIDE GRAPHIC ARTS USAGE OF SILVER THE MARKET SEGMENT CITED BY XEROX AS A POTENTIAL USER FOR ITS NEW FILM TECHNOLOGY ACCOUNTED FOR ONLY ABOUT 427 MILLION OUNCES OF THE 2045 MILLION OUNCES OF PHOTOGRAPHIC SILVER USED WORLDWIDE IN 1992 SOME PORTION OF THAT WILL BE REPLACED BY THIS NEW TECHNOLOGY IF IT WORKS MR LUTLE SAID HOWEVER IF IT WORKS DEPENDS ON THE CUSTOMERS AND WHETHER THEY BUY IT NOT ON WHAT XEROX SAYS THE SILVER FUTURES MARKET NEVERTHELESS REACTED QUITE STRONGLY TO THE NEWS THE ROUT BEGAN EARLY IN THE SESSION AND GATHERED MOMENTUM AS MANY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY RUSHED TO SELL FUTURES CONTRACTS IN NEW YORK WEAKNESS IN THE SILVER MARKET SOON SPILLED OVER INTO THE GOLD AND PLATINUM MARKETS THESE MARKETS WERE VULNERABLE TO SUCH A SELLOFF MR SAVAIKO SAID BECAUSE OF OTHER MARKET FACTORS THERE'S A LACK OF INVESTMENT INTEREST IN THE METALS HE SAID THEY'RE FACING STIFF COMPETITION FROM PAPER ASSETS LIKE STOCKS AND BONDS LOW INFLATION AND RISING US INTEREST RATES HAVE ALSO TAKEN SOME OF THE INVESTOR APPEAL AWAY FROM PRECIOUSMETALS MARKETS HE SAID THERE WAS A GREAT DEAL OF SPECULATION IN THE MARKET YESTERDAY ABOUT THE LONGTERM IMPACT ON SILVER USAGE OF THE NEW XEROX TECHNOLOGY MOST STRATEGISTS THINK IT IS TOO EARLY TO ACCURATELY GAUGE WHETHER THE PRODUCT WILL SIGNIFICANTLY SAP SILVER DEMAND IT'S NOT LIKE ALL THIS COMMERCIAL PHOTOGRAPHY USAGE OF SILVER IS GOING TO GO TO ZERO INSTANTANEOUSLY SAID WILLIAM FLECKENSTEIN A PRINCIPAL AT OLYMPIC CAPITAL MANAGEMENT IN SEATTLE WE HAVE TO TAKE SOME TIME AND SEE WHAT IT IS IN OTHER COMMODITY MARKETS YESTERDAY ENERGY FUTURES PRICES OF HEATING FUELS SURGED AFTER COLD WEATHER SWEPT THE US MIDWEST AND NORTHEAST BRINGING RECORD LOW TEMPERATURES TO MORE THAN 40 CITIES ON THE NEW YORK MERCANTILE EXCHANGE HEATING OIL FOR DECEMBER DELIVERY JUMPED 156 CENTS A GALLON TO SETTLE AT 5312 CENTS JANUARY HEATING OIL WAS UP 153 CENTS TO 5374 CENTS A GALLON NATURAL GAS FUTURES ALSO SHOWED MAJOR GAINS THE DECEMBER GAS CONTRACT SETTLED 66 CENTS HIGHER AT 2434 PER MILLION BRITISH THERMAL UNITS AND JANUARY GAS WAS UP 53 CENTS TO 2435 TRADERS SAID A RETURN OF MILD WEATHER COULD BRING DOWN GAS PRICES BUT HEATING OIL FUTURES DREW ADDED STRENGTH FROM THE GENERAL RISE IN PETROLEUM PRICES DUE TO INITIAL REPORTS ON OPEC'S OCTOBER PRODUCTION THE REPORTS SHOWED THAT WHILE SOME MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES STILL WERE PRODUCING SLIGHTLY ABOVE THEIR QUOTAS TOTAL OPEC OUTPUT WAS LOWER IN OCTOBER THAN GENERALLY EXPECTED GRAINS & SOYBEANS PRICES OF CORN FUTURES CONTRACTS ROSE AMID SPECULATION THAT THE AGRICULTURE DEPARTMENT ON NOV 9 WILL LOWER ITS MONTHLY FORECAST OF THE US CORN CROP THE HARVEST OF WHICH IS UNDER WAY ACROSS THE MIDWEST GRAIN TRADERS GENERALLY EXPECT PRIVATE CROP FORECASTERS TO LOWER THEIR ESTIMATES TO BETWEEN 670 BILLION BUSHELS AND 675 BILLION BUSHELS THE AGRICULTURE DEPARTMENT IN OCTOBER FORECAST A US CORN CROP OF 696 BILLION BUSHELS DOWN 27 FROM THE RECORD 1992 CORN HARVEST RECORD RAIN ACROSS THE MIDWEST DELAYED PLANTING STUNTED GROWTH AND SPREAD MOLDS THROUGHOUT THE CROP IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR DECEMBER DELIVERY CLIMBED THREE CENTS A BUSHEL TO SETTLE AT 2606 A BUSHEL SOYBEAN PRICES SETTLED MOSTLY LOWER WHEAT PRICES SETTLED MIXED 9311020115 931102 HICKS MUSE TO BUY BREWER FOR 390 MILLION CLOSELY HELD G HEILEMAN VIEWED AS OPPORTUNITY' IN FLAT MARKET FOR BEER BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS HICKS MUSE & CO STEPPING INTO THE STRUGGLING BEER INDUSTRY AGREED TO PURCHASE CLOSELY HELD G HEILEMAN BREWING CO FOR 390 MILLION THE INVESTMENT FIRM HOPES TO EMULATE THE SUCCESS THAT ITS PREDECESSOR HICKS & HAAS INC HAD IN BUYING AND REVIVING NICHE SOFT DRINKS LIKE DR PEPPER SEVENUP AND A&W ROOT BEER WE THINK THERE IS A REAL OPPORTUNITY IN THE BEER INDUSTRY RIGHT NOW SAID THOMAS O HICKS CHAIRMAN AND CHIEF EXECUTIVE OF THE CLOSELY HELD FIRM HEILEMAN CHAIRMAN AND CHIEF EXECUTIVE THOMAS J RATTIGAN SAID HICKS MUSE WILL BRING NEEDED FINANCIAL AND ORGANIZATIONAL SUPPORT TO THE BREWER THE PLANNED SALE HE SAID REPRESENTS THE SUCCESSFUL CULMINATION OF OUR EFFORTS TO PROPERLY POSITION HEILEMAN FOR CONTINUED PROFITABLE GROWTH AND LONGTERM SUCCESS HEILEMAN THE FIFTHLARGEST US BREWER WITH A 5 MARKET SHARE IS BESTKNOWN FOR ITS COLT 45 MALT LIQUOR AND REGIONAL BRANDS SUCH AS OLD STYLE LONE STAR AND HENRY WEINHARD'S BUT THE LA CROSSE WISBASED COMPANY HAS STRUGGLED IN RECENT YEARS AS THE INDUSTRY'S SALES GROWTH SLOWED AND DEBT PILED UP FROM A 1 BILLION LEVERAGED BUYOUT BY BOND CORP OF AUSTRALIA IN 1987 THE COMPANY NOW PRINCIPALLY OWNED BY THE BANK OF BOSTON AND OTHER CREDITORS EVENTUALLY DEFAULTED ON THE DEBT AND REORGANIZED IN 1991 UNDER CHAPTER 11 PROTECTION CHARLES W TATE A HICKS MUSE PARTNER SAID THE COMPANY HAS BECOME QUITE PROFITABLE SINCE REORGANIZATION EVEN THOUGH SALES HAVE BEEN DECLINING MESSRS HICKS AND TATE SAY THEY PLAN TO LOOK AT ADDITIONAL ACQUISITIONS OF BREWERS BUT WOULDN'T COMMENT FURTHER ANALYSTS SAY SMALLER RAPIDLY GROWING BRANDS MIGHT BE GOOD TARGETS AND A CONSOLIDATION AMONG MIDDLESIZE FIRMS MIGHT MAKE SENSE STROH BREWING CO THE NO 4 BREWER TRIED TO BUY HEILEMAN BUT WAS OUTBID THEY POINT OUT A STROH SPOKESMAN DID NOT RETURN PHONE CALLS BUT BEFORE BUYING MORE BRANDS HICKS MUSE WILL FIRST TRY TO REVIVE SALES GROWTH AT HEILEMAN IN PART BY EXPANDING THE COMPANY'S LARGELY REGIONAL BRANDS BUILDING ON STRENGTHS IN THE NORTHWEST WHERE HEILEMAN HAS 17 OF THE MARKET AND THE CHICAGO REGION WHERE IT COMMANDS 12 MR HICKS SAID HICKS MUSE ESTIMATED HEILEMAN'S 1993 SALES AT ABOUT 900 MILLION THE FIRM ALSO HOPES TO IMPROVE HEILEMAN'S RELATIONS WITH DISTRIBUTORS BY PROVIDING INCREASED MARKETING SUPPORT AND GREATER FINANCIAL INCENTIVES WE THINK WE HAVE A SIMILAR OPPORTUNITY HERE TO THE SUCCESS WE HAD WITH NICHE SOFTDRINK BRANDS HE SAID THAT SUCCESS WAS CONSIDERABLE IN 1986 MR HICKS WITH THENPARTNER ROBERT HAAS LED PURCHASES OF DR PEPPER AND SEVENUP IN SEPARATE TRANSACTIONS FOR A TOTAL OF 45 MILLION AFTER INSTALLING NEW MANAGEMENT AND INTENSIFYING MARKETING EFFORTS THE NEW OWNERS SOLD JUST 50 OF THEIR EQUITY 18 MONTHS LATER FOR 600 MILLION SINCE MESSRS HICKS AND HAAS SPLIT UP IN 1989 HICKS MUSE HAS BEEN ACTIVE AND LARGELY SUCCESSFUL IN THE BUYOUT MARKET WITH 16 ACQUISITIONS LARGELY IN MANUFACTURING AND SERVICE INDUSTRIES MR HAAS RECENTLY RESURFACED WITH A NEW BUYOUT FIRM HAAS WHEAT & PARTNERS BACKED IN PART BY FORT WORTH FINANCIER ROBERT BASS REVIVING HEILEMAN A DISTANT CONTENDER TO DOMINANT INDUSTRY GIANTS ANHEUSERBUSCH COS AND MILLER BREWING CO A UNIT OF PHILIP MORRIS COS WOULD SEEM A FORMIDABLE TASK BUT MR HICKS FACED A SIMILAR COMPETITIVE STRUCTURE IN SOFT DRINKS BESIDES HE SAID HIS FIRM IS BUYING HEILEMAN AT A VALUATION OF 55 TIMES CASH FLOW COMPARED WITH EIGHT TIMES CASH FLOW FOR DR PEPPER AND A&W BRANDS INC WHICH LATER SOLD IN PUBLIC OFFERINGS AT 11 TO 12 TIMES CASH FLOW WHILE THE BEER INDUSTRY DOESN'T HAVE THE SAME GROWTH CHARACTERISTICS AS SOFT DRINKS WE THINK 55 TIMES IS VERY ATTRACTIVE MR HICKS SAID ANALYSTS SAY HICKS MUSE MAY HAVE MARKET TRENDS IN ITS FAVOR SMALLER BRANDS HAVE BEEN ABLE TO GROW IN THE SHRINKING BEER MARKET BECAUSE CONSUMERS HAVE BEEN MORE WILLING TO TRY NEW OR REVIVED BRANDS THEY SAY THE INDUSTRY IS VERY VOLATILE RIGHT NOW SAYS BENJAMIN STEINMAN EXECUTIVE EDITOR OF BEER MARKETER'S INSIGHTS WILLIAM J TURNER A MANAGEMENT AFFILIATE OF HICKS MUSE WILL BECOME CHAIRMAN OF HEILEMAN MR RATTIGAN HEILEMAN'S CHIEF EXECUTIVE WILL NOT STAY ON BEYOND A TRANSITION PERIOD MR TATE SAID 9311020114 931102 BUSINESS WORLD IS SCHOOL CHOICE AN OXYMORON BY TIM W FERGUSON RECRIMINATIONS HAVE BEGUN FROM TODAY'S EXPECTED DEFEAT OF CALIFORNIA'S SCHOOL VOUCHER PROPOSAL MUCH OF THE IRE FROM SUPPORTERS HAS BEEN TURNED ON BUSINESS EXECUTIVES WHO DESPITE THEIR COMPLAINING ABOUT THE QUALITY OF 12THGRADE GRADUATES PUNTED ON THIS DRAMATIC REFORM COMPANIES SUCH AS HEWLETTPACKARD EVEN GAVE TO THE OPPOSITION CORPORATE LEADERS ARE NOTHING IF NOT PRAGMATIC AND PROPOSITION 174 HAD AN EARLY SCENT OF DEFEAT SO WHAT'S THE SURPRISE EVEN THE SPONSORS OF THE MEASURE ARE NOW DEPICTING IT AS A PROTOTYPE FOR A MORE SERIOUS ATTEMPT TO COME BUT ONE VOICE ON THE LECTURE CIRCUIT SAYS BUSINESS WON'T EVER SUPPORT THIS KIND OF SCHOOL CHOICE NOR SHOULD IT THE REASON SAYS AUTHOR AND CONSULTANT LEWIS PERELMAN IS THAT SCHOOL IS OBSOLETE FORMAL GROUP INSTRUCTION HAS NO PLACE IN THE HIGHTECH MINDCRAFT ECONOMY IT IS A LABORINTENSIVE INCREASINGCOST BUSINESS IN A WORLD THAT IS MOVING WITH THE MICROCHIP IN JUST THE OPPOSITE WAY BECAUSE PROFITSEEKING ENTERPRISES WILL AVOID THE FIELD HE SAYS NO LIKE ALTERNATIVE WILL ARISE TO COMPETE WITH THE PUBLIC SCHOOLS VOUCHERS OR NOT IN MR PERELMAN'S VIEW LAYOFFS OF TRADITIONALLY SCHOOLED WORKERS EVEN THOSE LOADED WITH PARCHMENT WILL GO ON FOR YEARS BECAUSE THESE EMPLOYEES AREN'T SUITED TO THE NEW CUSTOMERDRIVEN INFORMATIONREADY MARKETPLACE THE BEST THING THE CHAMBER OF COMMERCE COULD DO TO IMPROVE EDUCATION HE SAYS IS TO ACKNOWLEDGE PUBLICLY THAT DIPLOMAS DON'T MATTER THE SAME FOR COLLEGE DEGREES THAT JUST TALLY TIME SPENT SAYS MR PERELMAN WHOSE RECENT BOOK AN AVON PAPERBACK IS APTLY TITLED SCHOOL'S OUT NO DOUBT MR PERELMAN HAS BUILT SOME SHOCK VALUE INTO HIS PRESENTATION HE IS AFTER ALL A PROMOTER OF WHAT HE CALLS HYPERLEARNING THE INDIVIDUALIZED INTERACTIVE TYPE THE MICROCHIP MAKES POSSIBLE EMPLOYERS ARE WELL ON THEIR WAY TO INCORPORATING SUCH PROCESSES IN WORK SITUATIONS RANGING FROM AUTO REPAIR OFFICE MANAGEMENT AND DELIVERY LOGISTICS TO THE MOST ADVANCED LABORATORY WHAT USE DO THEY HAVE FOR OUTDATED SCHOOLS KIDS COME NATURALLY TO THIS TYPE OF ENGAGEMENT A COUSIN TO THE NINTENDO AND SEGA GAMES THAT SO CAPTIVATE THEM SMART VIDEO IS THE WAVE OF TEACHING'S FUTURE THE AUTOMOBILE TO TODAY'S HORSE AND SAYS MR PERELMAN THIS APPROACH NEEDN'T ENTAIL THE SOCIAL STIGMATIZING THAT HE BLAMES FOR DOUSING AMBITIONS IN SCHOOLS NO ONE NEEDS TO FILL THE BOTTOM HALF OF THE CLASS THIS KIND OF INSTRUCTION REQUIRES CURRENT TECHNOLOGY SCHOOLS DON'T HAVE THAT MR PERELMAN SAYS WHETHER THEY'RE PUBLIC PRIVATE OR POSTSECONDARY THEIR CLASSROOMS LOOK MUCH AS THEY DID DECADES AGO MOST ARE NOT YET WIRED FOR TELEPHONES AND THE FEW COMPUTERS THAT EXIST OFFER LITTLE TRAINING SUPPORT A CORPORATE PLANNER FOR HOLIDAY INNS IN THE EARLY 1980S MR PERELMAN LIKES TO OBSERVE THAT AN AVERAGE US BUSINESS INVESTS ABOUT 50000 IN CAPITAL PER JOB WHILE IN ACADEME IT'S ONLY 1000 THE POLITICAL DYNAMICS OF SCHOOLS HELP TO EXPLAIN WHY THAT IS SO MORE THAN EVER EMPLOYEE SHORTRUN INTERESTS PREVAIL ESPECIALLY THOSE OF TEACHERS OR PROFESSORS PAY IS DETERMINED BY BARGAINING POWER AND NOT PRODUCTIVITY WHILE ADMINISTRATORS PUSH PAPER THE NEEDS OF CUSTOMERS TO THE EXTENT THEY ARE WEIGHED ARE DETERMINED BY MANY OF THE SAME INSTITUTIONS BESTOWING CREDENTIALS ON THE PERSONNEL SCHOOL EMPLOYEES HAVE BECOME A FINANCIAL POWER ONE NEED ONLY LOOK AT THEIR BOOMING CREDIT UNIONS IN MANY COMMUNITIES THIS WEALTH ENHANCES THEIR POLITICAL PULL AS THE 16 MILLION THEY PUT UP AGAINST PROP 174 DEMONSTRATES NEVERTHELESS MR PERELMAN CONTENDS THAT THE RIGHT EXAGGERATES THIS MUSCLE AND THEREBY ADDS TO IT THE NATIONAL EDUCATION ASSOCIATION HE SAYS CAN MUSTER MAYBE 5 OF THE ELECTORATE EUROPE'S FARMERS IT MIGHT BE NOTED ARE ONLY 4 OF THE POPULATION BUT ALSO WIELD LEVERAGE IF A RETAIL MASS MARKET FOR HYPERLEARNING EXISTED MR PERELMAN MAINTAINS THE JOCKEYING BY THOSE SEEKING PROFITS WOULD ELBOW THE UNIONS OUT OF CONSEQUENCE HE SUGGESTS A VARIATION ON THE CHOICE THEME MICROVOUCHERS TO BRING THIS TO THE FORE TO START DISTANT STUDENTS NOW REQUIRING BUS EXPENDITURES COULD TRAVEL AN INFORMATION HIGHWAY INSTEAD WITH PAY PER VIEW TELECOURSES MADE AN OPTION TO OTHER LEARNERS AS WELL IF TEACHERS SAW GAIN FOR THEMSELVES IN DESIGNING PROGRAMS HE BELIEVES THEIR POLITICAL CALCULUS COULD CHANGE THAT'S PROBABLY TRUE FOR SOME ALTHOUGH IT WOULDN'T PROVIDE THE MASS JOB SECURITY THE SYSTEM DOES TODAY AFFILIATED WITH THE SEATTLEBASED DISCOVERY INSTITUTE AFTER A VARIED INTELLECTUAL CAREER THAT BEGAN AS A PHYSICS TEACHER MR PERELMAN IS AN ABLE SALESMAN FOR PEDAGOGICAL REVOLUTION HE IS LESS CONVINCING ON THE POLITICS OF THE MOMENT IF IN THEIR BASIC CONSERVATISM VOTERS ARE RELUCTANT TO GIVE PRIVATE SCHOOLS A BIG TRY HOW WILLING ARE THEY TO PLUNGE INTO WHAT A SUBTITLE OF MR PERELMAN'S BOOK CALLED THE END OF EDUCATION IN ADVOCATING WHAT AMOUNTS TO HOMESCHOOLING AS A PRINCIPAL OPTION HE IS ENTERING ONE OF THE MOST CONTENTIOUS CORNERS OF THE CHOICE DEBATE ALTHOUGH A MILLION US CHILDREN ARE THOUGHT TO BE TAUGHT AT HOME NOW THE NOTION THAT PARENTS COULD COLLECT MONEY AND NOT HAVE THEIR OFFSPRING PROFESSIONALLY SUPERVISED EVOKES AS MUCH SUSPICION AS AN ENHANCED PRIVATESCHOOL OPTION AND MAYBE MORE PLUS THERE'S THIS DIMENSION TO THE SCHOOLS FIGHT A LARGE BODY OF THE ELECTORATE CARES LESS ABOUT THE PRESENCE OR ABSENCE OF TECHNOLOGY THAN ABOUT INDOCTRINATION RELIGION IS PART OF IT PUBLIC SCHOOLS DEVELOPED LAST CENTURY TO HEAD OFF ROMAN CATHOLIC INFLUENCE TODAY IN MOST PARTS OF THE NATION THEY ARE AGGRESSIVELY SECULAR PERIOD BUT SURVEYS INDICATE THAT VOTERS TODAY WORRY ABOUT WEIRDNESS MORE THAN MERE FAITH WHILE PROMOTING AN INCREASINGLY STATIST SOCIAL AND ENVIRONMENTAL AGENDA OF THEIR OWN THE SCHOOLS ARE SEEN BY MANY AS A CHECK ON THE EXTREMES OF SOME PARENTS MISPLACED AS THAT CONCERN MAY BE IT'S OUT THERE THE ARGUABLY SEPARATE MATTER OF CHILDREN'S CHARACTER AND COOPERATION IS ALSO GROUND FOR CHALLENGING MR PERELMAN'S OBITUARY FOR SCHOOLS IN GENERAL WHETHER OR NOT A CHILD HAS A DECENT HOME LIFE SOCIALIZATION AT SCHOOL WOULD SEEM TO HAVE POTENTIAL NET BENEFITS IF A BRIGHT OR MERELY SELFCENTERED KID HAS ONLY AN ELECTRONIC BRAIN TO INTERACT WITH HE MAY GRASP A LOT BUT WILL HE FATHOM THAT BEING ABLE TO CHARM OTHERS OR WILLING TO WAIT FOR ONE'S TURN ALSO COUNT IN THIS WORLD THE AUTHOR'S GENERAL RESPONSE IS THAT THE COMPUTER AGE WILL CHANGE EVERYTHING INCLUDING ATTITUDES EVEN NOW THE PERELMAN PRESCRIPTION HELPS TO DISLODGE THE DEBATE FROM WHAT HE CORRECTLY SUGGESTS IS A TOONARROW FRAME PARTICULARLY IN THE UPPER GRADES THE END OF SCHOOLING AS WE'VE KNOWN IT MAKES SENSE BUSINESS PEOPLE WHO'VE COLDSHOULDERED A PRIVATESCHOOL OPTION MAY BE INTRIGUED TO HEAR THAT THEY'VE SIMPLY REJECTED A FALSE CHOICE 9311020113 931102 POLITICS & POLICY EPA SEEKS STRICT PAPERINDUSTRY RULES AIMED AT CUTTING DIOXIN AIR POLLUTION BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY PROPOSED STRICT PAPERINDUSTRY REGULATIONS THAT COMBINE AIR AND WATER REQUIREMENTS FOR THE FIRST TIME RATHER THAN ADDRESSING THEM SEPARATELY THE SOCALLED CLUSTER RULE TAKES WHAT THE EPA TERMS AN ECOSYSTEMWIDE APPROACH TO REDUCE AND PREVENT DISCHARGES OF DIOXIN AND OTHER TOXIC POLLUTANTS ACCORDING TO THE EPA THE RULE WILL VIRTUALLY ELIMINATE ALL DIOXIN DISCHARGES INTO RIVERS AND OTHER SURFACE WATERS AND WILL CUT TOXIC AIR EMISSIONS BY ROUGHLY 70 ALTHOUGH THE NEW REQUIREMENTS WERE DEVISED AFTER EXTENSIVE NEGOTIATIONS WITH THE INDUSTRY THEY'RE EXPECTED TO PROVE COSTLY FOR PAPER MANUFACTURERS THE AMERICAN FOREST AND PAPER ASSOCIATION IN A STATEMENT SAID THE RULE COULD THREATEN THE JOBS OF TENS OF THOUSANDS OF WORKERS AROUND THE COUNTRY CLOSE AS MANY AS 30 MILLS AND COST THE INDUSTRY MORE THAN 10 BILLION IN CAPITAL COSTS THE EPA ESTIMATED THAT THE CLUSTER RULE WOULD REQUIRE LESS THAN THAT 4 BILLION IN CAPITAL INVESTMENTS AND 600 MILLION IN ANNUAL EXPENDITURES BUT IT ACKNOWLEDGED THAT THAT STILL WOULD BE A HEAVY PRICE THE REALITY IS THESE COSTS MAY BE TOO GREAT FOR SOME OF THE OLDER PLANTS TO BEAR SAID ROBERT PERCIASEPE THE EPA'S NEW ASSISTANT ADMINISTRATOR FOR WATER BUT MR PERCIASEPE SAID THAT WHILE PAPER IS THE NATION'S EIGHTHLARGEST MANUFACTURING INDUSTRY IT'S ALSO THE NATION'S THIRDLARGEST SOURCE OF ALL TOXIC RELEASES ENVIRONMENTAL GROUPS WERE CRITICAL OF THE PROPOSAL TOO LARGELY BECAUSE IT WOULDN'T TOTALLY ELIMINATE USE OF CHLORINE FROM THE PAPERMAKING PROCESS WHEN USED AS A BLEACHING AGENT CHLORINE IS CONVERTED INTO DIOXIN AND OTHER POTENTIALLY TOXIC CHEMICALS THE NATURAL RESOURCES DEFENSE COUNCIL VOICED DISAPPOINTMENT THAT THE EPA PROPOSAL WAS ONLY A HALFWAY MEASURE THE CLUSTER RULE REPRESENTS THE FIRST TIME THE EPA HAS ATTEMPTED TO ISSUE A SINGLE COMBINED RULE FOR AIR AND WATER A MOVE THAT'S INTENDED TO MAKE REGULATORY ACTIONS LESS BURDENSOME TO INDUSTRY THE PROPOSED RULE PROMULGATED UNDER THE CLEAN AIR AND CLEAN WATER ACTS PROPOSES STANDARDS BASED ON WHAT THE EPA BELIEVES CAN BE ACCOMPLISHED WITH THE BEST AVAILABLE TECHNOLOGY BUT IT DOESN'T DICTATE PRECISELY WHICH TECHNOLOGY PAPER MILLS MUST USE TO ACHIEVE THE NEW EMISSIONS STANDARDS THE AGENCY IS EXPECTED TO ISSUE A FINAL RULE AFTER A 90DAY COMMENT PERIOD AND THE NEW STANDARDS ARE EXPECTED TO BE FULLY IN FORCE BY 1998 9311020112 931102 INTERNATIONAL SALINAS USES SPEECH TO PREPARE MEXICO FOR POSSIBLE DEFEAT OF NAFTA IN US BY PAUL B CARROLL AND DIANNE SOLIS STAFF REPORTERS OF THE WALL STREET JOURNAL MEXICO CITY PRESIDENT CARLOS SALINAS DE GORTARI GAVE A SOBER STATEOFTHEUNION ADDRESS YESTERDAY THAT SEEMED TO BE DESIGNED TO PREPARE MEXICANS FOR THE POSSIBLE DEFEAT OF THE NORTH AMERICAN FREE TRADE AGREEMENT ALTHOUGH THE TRADE AGREEMENT WITH THE US AND CANADA HAS BEEN THE CORNERSTONE FOR HIS ECONOMIC REFORMS PRESIDENT SALINAS BEGAN HIS ANNUAL ADDRESS WITH A LENGTHY RECITATION OF ALL THE FOREIGN COUNTRIES OTHER THAN THE US AND CANADA THAT WANT TO INVEST IN MEXICO THE NEARLY THREEHOUR SPEECH ALSO STRESSED THAT THE ECONOMY'S SHARP IMPROVEMENT IN RECENT YEARS STEMMED FROM CONSTANT DAILY TENACIOUS EFFORTS BY MEXICANS NOT FROM ANY OUTSIDE INTERVENTION I REITERATE THAT WITH OR WITHOUT NAFTA THE EVOLUTION OF OUR ECONOMY WILL NOT BE SUBSTANTIALLY ALTERED IN THE IMMEDIATE FUTURE PRESIDENT SALINAS SAID THE KEY TO OUR DEVELOPMENT DOES NOT LIE OUTSIDE THE COUNTRY BUT RATHER IN OUR OWN EFFORTS IN SAVINGS PRODUCTIVITY AND QUALITY PRESIDENT SALINAS DID LET SOME PIQUE SHOW THROUGH CONCERNING THE DIFFICULTIES NAFTA HAS FACED IN THE US CONGRESS TODAY WHEN VOICES ARE BEING RAISED IN OTHER COUNTRIES TO SINGLE OUT OUR COUNTRY'S SHORTCOMINGS MERELY REFLECTING A PROFOUND IGNORANCE OF OUR INNATE VITALITY IT WOULD BE BEST TO RECALL THAT WE HAVE NO DESIRE TO BE LIKE OTHERS NOR TO SHARE THEIR DEFICIENCIES HE SAID STANDING IN THE CHAMBER OF DEPUTIES BENEATH AN INSCRIPTION THAT SAYS THE NATION COMES FIRST PRESIDENT SALINAS THEN CALLED FOR THE COUNTRY TO UNITE IN DEFENSE OF MEXICO'S SOVEREIGNTY IN THE FINAL YEAR OF HIS SIXYEAR TERM ALTHOUGH MEXICAN ELECTIONS HISTORICALLY HAVE BEEN TAINTED BY FRAUD AND DIRTY TRICKS PRESIDENT SALINAS CALLED FOR A POLITICAL PACT OF CIVILITY AS THE COUNTRY ENTERS A TIME OF REFLECTION PRIOR TO THE FEDERAL ELECTIONS NEXT SUMMER HE ALSO OFFERED A STERN PERSONAL PLEDGE TO ENFORCE LEGAL ORDERLY AND CIVILIZED CONDUCT OF POLITICAL ACTIVITIES THE PRESIDENT'S SPEECH WAS INTERRUPTED BY INTERMITTENT PROTESTS FROM OPPOSITION LEGISLATORS THE BULK OF THE SPEECH CONSISTED OF A REITERATION OF THE ECONOMIC ACCOMPLISHMENTS THAT HAVE OCCURRED DURING THE FIVE YEARS PRESIDENT SALINAS HAS BEEN IN OFFICE ON OCCASION HE TRIED TO USE THE ACCOMPLISHMENTS TO ROUSE THE AUDIENCE WITH THE ECONOMIC IMPROVEMENT THE PRESIDENT SAID WE HAVE LEFT BEHIND THE DEFEATIST IMAGE AND LACK OF CONFIDENCE IN OUR OWN STRENGTHS BUT HE READ THE SPEECH SO FAST ESPECIALLY ONCE THE PROTESTS BEGAN THAT FEW LINES DREW APPLAUSE PRESIDENT SALINAS ALSO TRIED TO DEFEND HIMSELF AGAINST CRITICS SUCH AS THOSE WHO ARGUE THAT THE ECONOMIC IMPROVEMENT HAS MAINLY BENEFITED RICH FRIENDS OF THE PRESIDENT'S PARTY HE INSISTED AT SOME LENGTH THAT ECONOMIC MEASURES SHOW THAT THE DIVISION BETWEEN RICH AND POOR FINALLY HAS BEGUN TO DIMINISH AFTER YEARS OF WIDENING AT WHICH POINT SOME LEGISLATORS HELD UP A BANNER SAYING POVERTY CAN'T BE REMOVED BY FALSE FIGURES THE SPEECH WAS GENERALLY WELL RECEIVED AS A SUBDUED ATTEMPT TO EASE ECONOMIC WORRIES ROGELIO RAMIREZ DE LA O AN ECONOMIST SAID HE THINKS PRESIDENT SALINAS WAS BOTH TRYING TO SAVE FACE POLITICALLY IN CASE NAFTA IS DELAYED AND TRYING TO CALM THE FINANCIAL MARKETS WHERE MANY INVESTORS WORRY ABOUT WHAT WILL HAPPEN IF NAFTA DOESN'T GO THROUGH THIS IS IMPORTANT HE SAID RAYMUNDO RIVA PALACIO A POLITICAL COMMENTATOR SAID THE PACT OF CIVILITY WON'T BE ENOUGH TO ENSURE CLEAN ELECTIONS PRESIDENT SALINAS DE GORTARI HAS AN HISTORIC OPPORTUNITY TO REVERSE THE AUTHORITARIANISM OF NOT ONLY HIS FIVE YEARS OF GOVERNMENT BUT OF THE RULING PARTY THAT HAS MONOPOLIZED NATIONAL LIFE FOR MORE THAN SIX DECADES BUT HE ADDED TO HAVE DEMOCRACY IN MEXICO REQUIRES DEMOCRATIC LEADERS 9311020111 931102 BRUNEI'S ROYAL FAMILY IN PARTNERSHIP TO BUY EXHELMSLEY PALACE NEW YORK THE OFFSHORE PARTNERSHIP THAT PLANS TO BUY THE NEW YORK PALACE HOTEL FORMERLY THE HELMSLEY PALACE WAS FORMED BY THE ROYAL FAMILY OF BRUNEI ONE OF THE WORLD'S WEALTHIEST FAMILIES AS REPORTED LAST WEEK THE ALMEDEO HOTELS LP AGREED TO BUY THE 1000ROOM LUXURY HOTEL FOR JUST OVER 200 MILLION THE HOTEL WAS THE SUBJECT OF A LEGAL BATTLE BETWEEN LEONA AND HARRY HELMSLEY THE PROPERTY'S GENERAL PARTNERS AND A GROUP OF LIMITED PARTNERS WHO HAD ACCUSED THE HELMSLEYS OF MISMANAGEMENT A COURTAPPOINTED ARBITRATION PANEL NAMED A RECEIVER TO SELL THE PROPERTY SULTAN HASSANAL BOLKIAH BRUNEI'S RULER CONTROLS A FORTUNE ESTIMATED BY FORTUNE MAGAZINE AT 37 BILLION DERIVED IN PART FROM THE OIL AND GAS RESERVES OF HIS TINY NATION ON THE ISLAND OF BORNEO IN SOUTHEAST ASIA OVER THE PAST DECADE HE HAS BOUGHT A SERIES OF HOTELS AROUND THE WORLD INCLUDING THE HYATT AND HOLIDAY INN IN SINGAPORE THE DORCHESTER HOTEL IN LONDON THE BEVERLY HILLS HOTEL IN LOS ANGELES AND NUSA DUA BEACH HOTEL IN BALI THERE WERE FIVE OTHER FIRM BIDS FOR THE NEW YORK PROPERTY ACCORDING TO BROKERS AT SONNENBLICKGOLDMAN CO NEW YORK WHICH TOGETHER WITH EASTDIL REALTY INC NEW YORK SOUGHT BUYERS IN BOTH EUROPE AND ASIA THE ARBITRATION PANEL HAS NOT YET GIVEN FINAL APPROVAL TO THE DEAL BUT IS EXPECTED TO ISSUE A DECISION SHORTLY 9311020110 931102 MEDIA DIGITAL TECHNOLOGY CHANGES HOW IMAGES ARE EDITED AND GIVES THEM A NEW LOOK BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE SMARTLY COIFFED YOUNG WOMAN ON THE COMPUTER SCREEN FLASHES A RADIANT SMILE IT'S A REVOLUTION SHE SAYS NATURALLOOKING HAIR COLOR WITH INCREDIBLE SHINE PALESTRINI POST PRODUCTION EDITOR CHIP SMITH SEATED IN FRONT OF THE MONITOR SEARCHES FOR THE RIGHT FLOURISH AMONG THE IMAGES STORED IN HIS COMPUTER THERE HE SAYS AS HE CLICKS HIS MOUSE INSERTING A TINY FILM CLIP IN THE COMMERCIAL THAT GIVES THE ACTRESS'S HAIR A LUSTROUS BOUNCE TO MATCH THE DIALOGUE IT'S LIKE WORD PROCESSING WITH PICTURES MR SMITH SAYS YOU CUT AND PASTE PICK UP A LITTLE PIECE AND MOVE IT WHERE YOU NEED IT JUST AS THE COMPUTER TRANSFORMED THE PUBLISHING INDUSTRY DIGITALEDITING TECHNOLOGY IS SWEEPING INTO TELEVISION ADVERTISING AND FILM CREATING NEW OPPORTUNITIES DISPLACING OLD SKILLS AND JOBS AND BRINGING SUBTLE CHANGES TO PRODUCTS COMPUTERASSISTED FILM EDITING HAS BEEN AROUND SINCE AT LEAST 1983 WHEN GEORGE LUCAS DEVISED THE EDITDROID AN EARLY DIGITAL EDITOR BUT IN THE PAST YEAR CHEAPER AND MORE POWERFUL DISK DRIVES AND COMPRESSION METHODS HAVE MADE IT POSSIBLE TO EDIT AN ENTIRE FEATURELENGTH FILM ON COMPUTERS AND THE TECHNOLOGY IS SPREADING FAST SALES OF DISKBASED DIGITALEDITING MACHINES HAVE JUMPED FROM VIRTUALLY NOTHING THREE YEARS AGO TO AN ESTIMATED 250 MILLION THIS YEAR AND ALTHOUGH THE MARKET IS DOMINATED NOW BY SMALL PLAYERS LED BY AVID TECHNOLOGY INC OF TEWKSBURY MASS SONY CORP IS EXPECTED TO COME OUT WITH A DISKBASED SYSTEM NEXT YEAR WITHIN A YEAR OR TWO ANALYSTS SAY COMPUTERBASED VIDEO EDITING WILL BE SO AFFORDABLE THAT IT WILL BECOME A CONSUMER ITEM MAKING POSSIBLE THE VIDEO CHRISTMAS CARD OR FAMILY VIDEO ALBUM FOR NOW COMPUTERS EQUIPPED WITH AVID'S TECHNOLOGY RANGE IN PRICE FROM 10000 TO AS MUCH AS 80000 BUT THE TECHNOLOGY IS ALREADY INDISPENSABLE TO MANY ADVERTISING AGENCIES AND IT IS SWEEPING ACROSS HOLLYWOOD SAYS DEAN GOODHILL AN EDITOR OF THE RECENT HIT FILM THE FUGITIVE HE ADDS THAT THE NEW TECHNIQUE IS FUNDAMENTALLY CHANGING AN INDUSTRY THAT HAS LITERALLY USED SCOTCH TAPE AND RAZOR BLADES SINCE THE INVENTION OF MOVIES IN TELEVISION WHERE COMPUTERASSISTED EDITING IS ALREADY WELL ESTABLISHED THE TRANSITION TO DISKBASED SYSTEMS HAS REALLY TAKEN HOLD IN THE PAST YEAR SAYS STEVEN COHEN ANOTHER HOLLYWOOD EDITOR DOZENS OF THIS SEASON'S NEW TV FEATURES AND NEWS SHOWS FROM 60 MINUTES TO THE LATE SHOW WITH DAVID LETTERMAN ARE BEING EDITED DIGITALLY ON DISKS IN THE NEW TECHNOLOGY VIDEO OR FILM IMAGES ARE CONVERTED TO DIGITAL FORM THEY ARE THEN STORED AND EDITED ON THE HARD DISK OF A COMPUTER PREVIOUSLY JUST THREE OR FOUR MINUTES OF FULLQUALITY VIDEO USED UP AN ENTIRE PC HARD DRIVE NOW USING COMPRESSION AND HUGE GIGABYTE DRIVES AVAILABLE FOR LESS THAN 1000 IT'S POSSIBLE TO SQUEEZE ENOUGH ONTO A LARGE DISK OR TWO TO MAKE TAPELESS EDITING PRACTICAL SONY ALREADY OFFERS DIGITALEDITING SYSTEMS BUT THEY PLACE DIGITIZED IMAGES ON VIDEOTAPE AND ARE THEREFORE LINEAR MEANING THAT EDITORS MUST ROLL A TAPE FORWARD OR BACK TO MAKE A CUT AVID AND OTHER NEW SYSTEMS ARE NONLINEAR MAKING IT POSSIBLE TO MOVE WITH A SINGLE KEYSTROKE TO A FILM'S BEGINNING MIDDLE OR END EDITORS CAN ALSO MAKE REPEATED WHAT IF CHANGES INSERTING HERE OR TRIMMING THERE AND VIEW THE RESULTS WITHOUT RECORDING THEM EACH TIME IT HELPS YOU BE MORE CREATIVE SAYS MR COHEN THE HOLLYWOOD FILM EDITOR IT LETS YOU TRY THINGS YOU MIGHT NOT HAVE ATTEMPTED IF YOU HAD TO SPLICE OVER AND OVER YOU'RE LIBERATED FROM THE MECHANICS OF FILM EDITING DIGITAL EDITING IS ALSO BRINGING CREATIVE CHANGES FOR BETTER OR WORSE THE TECHNOLOGY MAKES IT FAR EASIER TO PROVIDE THE RAPID SHIFTING OF SCENES AND IMAGES POPULARIZED BY MUSIC VIDEOS MR SMITH WHO EDITED THE HAIRCOLOR COMMERCIAL HAS PUT TOGETHER A PIECE THAT CUTS TO A NEW IMAGE WITH EACH BEAT OF A DRIVING MUSICAL SCORE FADES DISSOLVES AND OTHER SPECIAL EFFECTS ARE ALSO EASIER WHILE SPEEDING UP THE PROCESS DRAMATICALLY THE NEW TECHNOLOGY DOESN'T MEAN EDITORS FINISH SOONER WITH SO MANY POSSIBLE CHOICES IT OFTEN SEEMS TO TAKE YOU AND THE CLIENT LONGER TO CHOOSE WHAT WORKS MR SMITH SAYS SMALL US COMPANIES HOLD MUCH OF THE EMERGING MARKET LED BY AVID WHICH HAS MORE THAN HALF THE MARKET FOR PROFESSIONAL DISKBASED SYSTEMS AVID LAST WEEK POSTED A 156 JUMP IN THIRDQUARTER PROFIT ON REVENUE OF 30 MILLION DOUBLE ITS YEAREARLIER SALES AT THE LOW END OF THE MARKET MORE THAN A DOZEN COMPANIES INCLUDING ADOBE SYSTEMS INC AND AVID OFFER NONPROFESSIONAL DESKTOP VIDEO SYSTEMS OR SOFTWARE MANY OF THESE PRODUCTS ARE DESIGNED TO WORK WITH APPLE COMPUTER INC'S QUICKTIME SOFTWARE STANDARD OR MICROSOFT CORP'S NEW CHALLENGER TO QUICKTIME VIDEO FOR WINDOWS THERE ISN'T A PC MAKER IN THE WORLD THAT ISN'T TRYING TO BRING BROADCASTQUALITY VIDEO TO THE DESKTOP SAYS CURT RAWLEY AVID'S PRESIDENT IT'S THIS KIND OF GROWTH THAT'S ATTRACTING SONY WHICH DOMINATES THE MARKET FOR PROFESSIONAL VIDEOPRODUCTION EQUIPMENT AND CAN BE EXPECTED TO GO AFTER THE CONSUMER MARKET AS IT DEVELOPS THIS IS THE WAY THE MARKET IS HEADING AND SONY WILL BE THERE A SPOKESMAN SAYS BUT SONY IS ALSO CONCERNED ABOUT ITS INSTALLED BASE WE'LL MIGRATE THE ENTIRE INDUSTRY WHICH IS MOVING TOWARD ALLDISK OR SOLIDSTATE AND THAT WILL BE A STEPBYSTEP PROCESS THE SPOKESMAN SAYS STEVEN TRINGALI A PARTNER IN RAMPION VISUAL PRODUCTIONS INC IN BOSTON PREDICTS THAT THE NEW TOOLS WILL GIVE MORE PEOPLE ACCESS TO VIDEO PRODUCTION BUT WON'T MAKE THEM GOOD VIDEO PRODUCERS RESULTING IN A LOT OF BAD VIDEO BEING MADE IT'LL BE LIKE DESKTOP PUBLISHING WAS AT FIRST HE SAYS PEOPLE USED A DOZEN TYPEFACES JUMBLED INTO A SINGLE DOCUMENT JUST BECAUSE THE TECHNOLOGY LET THEM MR SMITH WHO SAYS HE LIKED TO HOLD A PIECE OF FILM UP TO THE LIGHT TO THINK ABOUT THE SCENE SAYS THERE ARE REASONS TO MISS THE VINTAGE TECHNOLOGY A FEW EDITORS SOME OF THE BEST WILL NEVER GIVE UP THEIR OLD MOVIOLAS HE PREDICTS REFERRING TO AN OLDER GENERATION OF EQUIPMENT BUT THE BETTING IN THE INDUSTRY IS THAT MOST MOVIOLAS ARE HEADED FOR THE SCRAP HEAP THAT'S WHAT HAPPENED WITH MOST NEWSPAPERS' TYPEWRITERS AND TYPESETTERS THOUGH THE ST PETERSBURG TIMES THE WASHINGTON POST AND A FEW OTHERS POLISHED THEIR LAST LINOTYPE MACHINES AND INSTALLED THEM IN THEIR LOBBIES AS A REMINDER OF THE PAST A FEW WEEKS AGO PALESTRINI'S FOUNDER SENT HIS OLD MOVIOLA OUT TO BE SHINED AND RECONDITIONED ONE LAST TIME IT NOW STANDS IN A CORNER OF THE COMPANY LOBBY WHERE A POTTED PLANT USED TO SIT 9311020109 931102 HIGH COURT REMOVES LIMITS ON ACCESS TO ITS TAPES WASHINGTON THE SUPREME COURT REMOVED RESTRICTIONS ON PUBLIC ACCESS TO AUDIO TAPES OF ITS ORAL ARGUMENTS THE HIGH COURT WHICH IS EXTREMELY SENSITIVE ABOUT PUBLICITY RECORDS ITS ORAL ARGUMENTS AND STORES THEM AT THE NATIONAL ARCHIVES RESEARCHERS HAVE BEEN PERMITTED TO LISTEN TO THE TAPES AND TO COPY THEM BUT ONLY IF THEY AGREE NOT TO FURTHER REPRODUCE THEM THIS SUMMER THE SUPREME COURT GOT INTO A SPAT WITH A UNIVERSITY OF CALIFORNIA POLITICAL SCIENTIST WHO VIOLATED THESE CONDITIONS BY MARKETING A SET OF TAPES OF SOME OF THE MOST FAMOUS CASES OF RECENT DECADES THAT DISAGREEMENT PROMPTED THE JUSTICES TO RECONSIDER THE RESTRICTIONS AND ULTIMATELY DECIDE TO DROP THEM A COURT SPOKESWOMAN SAID THE NATIONAL ARCHIVES MUST NOW WORK OUT THE DETAILS OF HOW PEOPLE CAN LISTEN TO THE TAPES IN A FIRSTOFITSKIND PROJECT PROFESSOR PETER IRONS HAS BEEN SELLING A 75 PACKAGE OF TAPES THAT INCLUDES THE ARGUMENTS IN THE 1973 ROE VS WADE ABORTIONRIGHTS CASE AND THE 1974 CASE OVER THE RELEASE OF THE WATERGATE TAPES 9311020108 931102 CLINTON REQUESTS 2 BILLION IN SPENDING RESCISSIONS WASHINGTON PRESIDENT CLINTON AS PROMISED SENT CONGRESS A LIST OF 2 BILLION OF SPENDING ITEMS THAT HE WANTS CONGRESS TO RESCIND THE 37 ITEMS ALL FROM APPROPRIATIONS BILLS FOR THE FISCAL YEAR THAT BEGAN OCT 1 INCLUDE 601 MILLION FOR MILITARY CONSTRUCTION PROJECTS NOT REQUESTED BY THE PRESIDENT AND 139 MILLION FOR UNNEEDED NUCLEAR REACTOR RESEARCH AT THE ENERGY DEPARTMENT AS WELL AS THE ELIMINATION OF FUNDING FOR THE STATE JUSTICE INSTITUTE WHICH THE PRESIDENT UNSUCCESSFULLY TRIED TO ELIMINATE EARLIER THIS YEAR MR CLINTON ALSO ASKED CONGRESS TO SAVE 326 MILLION BY KILLING SOME HIGHWAY AND WATER PROJECTS OFTEN CITED AS EXAMPLES OF CONGRESSIONAL PORKBARREL SPENDING BUT HE AVOIDED CONTROVERSY BY NOT NAMING ANY PARTICULAR PROJECT CONGRESS MUST CONSIDER THE PRESIDENT'S REQUEST BUT ISN'T OBLIGATED TO ACCEPT IT EVEN IF IT AGREES TO CANCEL 2 BILLION OF THE MORE THAN 500 BILLION IT IS APPROPRIATING FOR THE CURRENT FISCAL YEAR IT ISN'T LIKELY TO ACCEPT MR CLINTON'S SPECIFIC SUGGESTIONS TWO OF THE 13 APPROPRIATION BILLS COVERING DEFENSE AND INTERIOR HAVEN'T YET CLEARED CONGRESS SO MR CLINTON COULDN'T TARGET ANY ITEMS IN THOSE BILLS 9311020107 931102 NATURE TRUSTS GET BULK OF DORIS DUKE'S 12 BILLION ESTATE THIRD CHARITY IS BEQUEATHED SHARE OF NEW JERSEY LAND AND BEVERLY HILLS HOME BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL NEW YORK DORIS DUKE WHO INHERITED HER FATHER'S AMERICAN TOBACCO CO FORTUNE IN 1925 LEFT A 12 BILLION ESTATE OF WHICH THE BULK WILL GO TO TWO NEW FOUNDATIONS DESIGNED TO PROTECT FARMLAND AND ENDANGERED WILDLIFE A THIRD FOUNDATION WILL BE SET UP FOR CHARITABLE CAUSES ACCORDING TO HER WILL FILED TODAY IN SURROGATE COURT IN NEW YORK MS DUKE LEFT A PORTION OF HER PROPERTY IN HILLSBOROUGH NJ TO A CHARITABLE TRUST CALLED DORIS DUKE FOUNDATION FOR THE PRESERVATION OF ENDANGERED WILDLIFE AND ANOTHER PORTION OF THAT PROPERTY TO THE DORIS DUKE FOUNDATION FOR THE PRESERVATION OF NEW JERSEY FARMLAND AND FARM ANIMALS BOTH FOUNDATIONS WERE TO BE CREATED UPON HER DEATH THE 80YEAROLD MS DUKE DIED THURSDAY AT HER HOME IN BEVERLY HILLS CALIF HER MAIN RESIDENCE WAS IN HILLSBOROUGH WHERE SHE GREW UP ON DUKE FARMS A SPACIOUS ESTATE DEVELOPED BY HER FATHER JAMES BUCHANAN DUKE HIS FORTUNE CAME FROM AMERICAN TOBACCO CO DUKE POWER CO AND REALESTATE INVESTMENTS SHE BEQUEATHED THE REMAINDER OF THE HILLSBOROUGH PROPERTY TO A NEW CHARITY CALLED DORIS DUKE CHARITABLE FOUNDATION SHE DID NOT LEAVE ANY PORTION OF HER ESTATE TO THE DORIS DUKE FOUNDATION INC WHICH IN THE LATEST FISCAL YEAR MADE 775000 IN CHARITABLE CONTRIBUTIONS SHE LEFT ALL HER CLOTHING JEWELRY OTHER PERSONAL EFFECTS FURNITURE FURNISHINGS BOOKS AND HOUSEHOLD ITEMS AT THE NEW JERSEY RESIDENCE TO THE NEW FOUNDATION SHE LEFT HER ESTATE IN NEWPORT RI TO THE NEWPORT RESTORATION FOUNDATION HER HONOLULU ESTATE WAS LEFT TO A NEW CHARITABLE TRUST CALLED DORIS DUKE FOUNDATION FOR ISLAMIC ART MS DUKE WAS CONSIDERED AN AUTHORITY ON MIDDLE EASTERN AND ORIENTAL ART AND HER HOMES WERE DECORATED WITH ART AND ARTIFACTS SHE COLLECTED DURING HER TRAVELS SHE LEFT THE BEVERLY HILLS HOME TO THE NEWLY ESTABLISHED CHARITABLE FOUNDATION SHE LEFT 100000 IN A TRUST FOR THE CARE OF A DOG THAT LIVES ON HER BEVERLY HILLS PROPERTY THE WILL ESTIMATED THE VALUE OF HER HOMES AT SEVERAL HUNDRED MILLION DOLLARS WHILE VARIOUS INVESTMENTS WERE VALUED AT MORE THAN 1 BILLION HER WILL LEAVES 10 MILLION TO DUKE UNIVERSITY WHICH HER FATHER FOUNDED 10 MILLION TO THE METROPOLITAN MUSEUM OF ART IN NEW YORK AND 1 MILLION TO THE BRONX ZOO IN NEW YORK THE RECLUSIVE MS DUKE ALSO STATED IN HER WILL THAT SHE WANTS FORMER PHILIPPINE FIRST LADY IMELDA MARCOS TO REPAY HER ESTATE 5 MILLION USED TO BAIL OUT MRS MARCOS WHO WAS INDICTED IN NEW YORK ON FEDERAL RACKETEERING CHARGES IN 1988 9311020106 931102 MONDAY'S MARKETS INDUSTRIALS HIT RECORD BONDS DROP ECONOMIC DATA CAUSE A SHARP RATE RISE DOLLAR ENDS MIXED BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE SAILED TO ITS THIRD RECORD IN A WEEK AS ANOTHER BUOYANT REPORT ON THE ECONOMY MITIGATED A SHARP RISE IN INTEREST RATES BOND PRICES TUMBLED AND THE DOLLAR ENDED MIXED THE INDUSTRIAL AVERAGE CLIMBED 1202 POINTS TO 369261 SURPASSING ITS OLD RECORD OF 368786 SET THURSDAY STANDARD & POOR'S 500STOCK INDEX ROSE 127 TO 46910 FINISHING JUST A FRACTION AWAY FROM A HIGH AND THE NASDAQ COMPOSITE INDEX ROCKETED 451 TO 78377 WITHIN REACH OF ITS RECORD 78742 SOME SPECIALIZED STOCK MARKET INDEXES ALSO CAREENED TO HIGHS THE DOW JONES TRANSPORTATION AVERAGE SOARED 1517 POINTS TO 174224 AS INVESTORS CONTINUED TO SNAP UP AIRLINE STOCKS STOCKS WERE POISED TO RISE AFTER THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT REPORTED ITS OCTOBER COMPOSITE INDEX ROSE TO 538 FROM 497 IN SEPTEMBER I THINK INVESTORS ARE DECIDING THAT THE ECONOMY IS LOOKING A LITTLE BIT BETTER SO YOU SEE A WILLINGNESS TO BUY STOCKS EVEN THOUGH THE BOND MARKET IS NOT VERY SUPPORTIVE SAID ABBY COHEN STOCK STRATEGIST AT GOLDMAN SACHS THOUGH SOME ANALYSTS FRET THAT RISING INTEREST RATES WILL SOON TAKE A TOLL ON THE STOCK MARKET MS COHEN SAID IT'S WAY TOO PREMATURE TO WORRY ABOUT A RISE IN RATES IF THE RISE IN INTEREST RATES IS GRADUAL AND IS ACCOMPANIED BY AN IMPROVEMENT IN PROFITS THEN I THINK THAT'S FINE FOR THE EQUITY MARKET OTHER ANALYSTS SAID WHAT REALLY MATTERS TO STOCK INVESTORS IS SHORTTERM INTEREST RATES AND SO FAR THERE ARE NO SIGNS THEY WILL RISE SOON INFLATION IS STILL SUPPRESSED AND THERE IS NO STRENGTH IN TOTAL LOAN DEMAND TO CAUSE SHORTTERM INTEREST RATES TO GO UP SAID STEFAN ABRAMS DIRECTOR OF EQUITY STRATEGY AT TRUST CO OF THE WEST IF I SAW THE YIELD ON THE ONEYEAR TREASURY BILL AT 45 INSTEAD OF 35 I WOULD BE MUCH MORE CONCERNED ABOUT STOCKS HE ADDED BUT MANY BOND INVESTORS TOOK A DIFFERENT VIEW OF THE PURCHASING MANAGERS' REPORT AND DROVE PRICES OF LONG AND INTERMEDIATE MATURITY BONDS SHARPLY LOWER WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 004 TO 11353 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2538 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1078 ISSUES ADVANCED AND 957 DECLINED BOND PRICES SLUMPED THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL ALMOST A FULL POINT OR ABOUT 10 FOR EACH 1000 FACE AMOUNT TO YIELD 603 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS AT 16938 MARKS AND 10820 YEN COMPARED WITH 16859 MARKS AND 10856 YEN LATE FRIDAY 9311020105 931102 WHO'S NEWS CHEROKEE'S CHAIRMAN CEO MARGOLIS RESIGNS AFTER REORGANIZATION SUNLAND CALIF ROBERT MARGOLIS 45 YEARS OLD RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CHEROKEE INC WHICH MAKES FOOTWEAR AND CASUAL APPAREL NO IMMEDIATE SUCCESSOR WAS NAMED IN A STATEMENT MR MARGOLIS SAID HE WAS STEPPING DOWN TO PURSUE OTHER ENTREPRENEURIAL OPPORTUNITIES FOLLOWING THE COMPANY'S FINANCIAL REORGANIZATION IN MAY THE COMPANY SAID NO OTHER MAJOR MANAGEMENT CHANGES ARE EXPECTED AND THAT BRYAN MARSAL 42 HAS BEEN RETAINED TO ASSIST THE BOARD UNTIL A PERMANENT CHIEF EXECUTIVE IS NAMED I FEEL THE TIME IS APPROPRIATE FOR ME TO STEP ASIDE SO THAT THE NEW MANGEMENT TEAM CAN FOCUS ON MAXIMIZING THE POTENTIAL OF CHEROKEE'S BRAND NAME AND OTHER STRENGTHS IN TODAY'S MARKETPLACE SAID MR MARGOLIS WHO WILL BE A CONSULTANT TO THE COMPANY CARY COOPER CHIEF FINANCIAL OFFICER SAID THE BOARD WILL CONSIDER CANDIDATES FROM INSIDE AND OUTSIDE THE COMPANY FOR THE CEO POST CHEROKEE IN APRIL FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION IN A PREPACKAGED REORGANIZATION PLAN CHEROKEE'S STOCK CLOSED AT 625 UP 1125 OR 22 IN OVERTHECOUNTER TRADING 9311020104 931102 WHO'S NEWS CARTER HAWLEY HALE STORES INC CARTER HAWLEY HALE STORES INC LOS ANGELES BETH SIEGEL FORMERLY A VICE PRESIDENT AT MONTGOMERY WARD & CO WAS NAMED SENIOR VICE PRESIDENT OF SALES PROMOTION FOR THIS RETAILER SUCCEEDING JO LAWLEY WHO RESIGNED 9311020103 931102 INTERNATIONAL SHEVARDNADZE FINDS FINEHONED DIPLOMATIC ARTS CAN'T FEED HIS CRUMBLING AND WARTORN GEORGIA BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL TBILISI GEORGIA WITH HIS DISTINCTIVE FLUFF OF WHITE HAIR DEEP GAZE AND DIPLOMAT'S CHARM EDUARD SHEVARDNADZE HAS CHANGED LITTLE SINCE HIS DAYS AS FOREIGN MINISTER OF THE DYING SOVIET UNION THE WORLD AROUND HIM HAS CHANGED A LOT AND AS LEADER THESE PAST 20 MONTHS OF THE CRUMBLING WARWRACKED FORMER SOVIET REPUBLIC OF GEORGIA MR SHEVARDNADZE IS FALLING BEHIND THE CURVE INTERVIEWED IN HIS OFFICE IN THE FORMER MARXISTLENINIST INSTITUTE THAT NOW HOUSES PARLIAMENT MR SHEVARDNADZE SPEAKS ABOUT GEORGIA'S HOPES OF BUILDING DEMOCRACY THE ECONOMY AND IN SOME CASES REGAINING TERRITORIAL INTEGRITY THAT'S NOT THE TREND GEORGIA IS UNDER A STATE OF EMERGENCY AND PARLIAMENT HAS BEEN TEMPORARILY DISSOLVED IN SEPTEMBER GEORGIA LOST ITS NORTHWESTERN PROVINCE OF ABKHAZIA IN A BRUTAL SEPARATIST WAR WHILE THAT WAS GOING ON MR SHEVARDNADZE'S DEPOSED PREDECESSOR THE ELECTED PRESIDENT ZVIAD GAMSAKHURDIA RETURNED FROM EXILE TO LAUNCH A CIVIL WAR STILL ENGULFING PARTS OF WESTERN GEORGIA ECONOMIC REFORM HAS DROPPED BY THE WAYSIDE THE COUNTRY IS DESTITUTE AND MR SHEVARDNADZE AFTER A SEPTEMBER MEETING WITH RUSSIA'S PRESIDENT BORIS YELTSIN IN MOSCOW REVERSED GEORGIA'S POSTSOVIET POLICY OF PRESSING FOR INDEPENDENCE AFTER TWO CENTURIES OF DOMINATION BY MOSCOW THE OLD POLICY HAD INSISTED THAT RUSSIA WITHDRAW THE THOUSANDS OF TROOPS IT BASES IN GEORGIA BY 1995 BUT ON OCT 8 MR SHEVARDNADZE ANNOUNCED THAT GEORGIA WAS APPLYING FOR MEMBERSHIP IN THE COMMONWEALTH OF INDEPENDENT STATES THE CONFEDERATION OF SOME FORMER SOVIET REPUBLICS AND HE WENT ON TO REQUEST THAT RUSSIAN TROOPS HELP DEFEND HIS GOVERNMENT THE BASIC PROBLEM FOR MR SHEVARDNADZE IS THAT THE DIPLOMATIC SKILLS THAT WON HIM WORLD FAME DURING THE DISMANTLING OF THE SOVIET BLOC HAVE DELIVERED LITTLE JOY AS A MEANS OF IMPROVING LIFE IN GEORGIA OVER THE PAST YEAR MR SHEVARDNADZE EMBARKED ON A SERIES OF INTERNATIONAL INITIATIVES TRYING TO CASH IN HIS DIPLOMATIC STATURE TO SAVE HIS COUNTRY FROM WAR AND ECONOMIC COLLAPSE YET NONE OF THESE INITIATIVES HAS TURNED THE TIDE SHEVARDNADZE WAS THE MAN ON WHOM WESTERN POLITICIANS PLACED THEIR BETS SAYS GEORGE TARKHANMOURAVI VICE CHAIRMAN OF A TBILISI THINK TANK CALLED THE CAUCASIAN INSTITUTE FOR PEACE DEMOCRACY AND DEVELOPMENT NONE OF WHICH GEORGIA IS EXPERIENCING AT THE MOMENT GEORGIA'S GOVERNMENT TODAY IS SWAMPED BY CORRUPTION AND CONFUSION SHEVARDNADZE'S AIDES DON'T KNOW WHAT HE WANTS SAYS MR TARKHANMOURAVI ADDING I THINK HE IS QUITE INCOMPETENT IN ECONOMICS EVEN THOSE WHO SUPPORT THE 65YEAROLD LEADER TEND TO BE BLUNT IN THEIR CRITICISM HIS OWN NATIONAL SECURITY ADVISER TEDO JAPARIDZE SAYS THAT SHEVARDNADZE HAS DONE A LOT FOR GEORGIA BUT IT'S NOT ENOUGH A MAN OF THIS CELEBRITY AND CALIBER HE HAS NOT BROUGHT TO GEORGIA THE ADVANTAGES HE PROMISED ON A COLD TBILISI NIGHT PEOPLE WAITING IN ONE OF THE CITY'S MANY LONG 'ROUNDTHECLOCK BREAD LINES BEGIN BEATING ON THE BARRED DOORS OF A BAKERY SHOUTING OPEN UP WAITING NEAR THE END OF THE LINE GOVERNMENT WORKER MERAB KITIANI HIS SALARY REDUCED BY INFLATION TO THE EQUIVALENT IN GEORGIAN COUPONS OF ABOUT 24 A YEAR AND SINKING SAYS WE CAN'T GO ON LIKE THIS IT'S INTOLERABLE SIGHING MR SHEVARDNADZE BLAMES SOME OF THE TROUBLES ON THE SHEER SHOCK OF THE SOVIET BREAKUP WHICH HE SAYS LEFT GEORGIA IN ECONOMIC ISOLATION AND LED TO TODAY'S FINANCIAL CRISIS AND HUNGER IN SOVIET DAYS HE SAYS GEORGIA PROVIDED RUSSIA WITH SEASIDE RESORTS WINE AND INDUSTRIAL GOODS IN RETURN RUSSIA SENT FUEL BUT NOW THAT'S BLOCKED HE SAYS THESE PAST 12 MONTHS THE COUNTRY'S PRODUCTION HAS SHRUNK AT A RATE ESTIMATED AT SOMEWHERE BETWEEN 40 AND 70 VIRTUALLY NO FREEMARKET INSTITUTIONS HAVE BEEN SET UP TO REPLACE THE OLD SOVIET PLANNING IT HASN'T HELPED THAT MR SHEVARDNADZE DESPITE HIS COURAGE AND 9 AM TO 2 AM WORK SCHEDULE SIMPLY THROWS UP HIS HANDS OVER THE COUNTRY'S ECONOMIC PROBLEMS WHEN STATE INDUSTRY NEEDS FUNDS ADMITS MR SHEVARDNADZE WE JUST ISSUE THE MONEY HE SAYS THE ONLY OTHER WAY OUT WOULD BE TO CUT PUBLIC FUNDING AND THESE MEASURES WOULD BE FOLLOWED BY POLITICAL EXPLOSION SO WORKERS HAVE REMAINED ON THE STATE PAYROLL WHILE MOST INDUSTRY HAS FALLEN IDLE FOR LACK OF FUEL AND CUSTOMERS MEANWHILE INFLATION IS ERODING THOSE WAGES STATE PAYCHECKS DENOMINATED IN GEORGIA'S CURRENCY THE COUPON ARE NOW WORTH A MERE 1 OR 2 A MONTH THE COUPON HAS PLUNGED TO 37000 PER DOLLAR THIS PAST WEEK FROM 23000 THE WEEK BEFORE BECAUSE PRIVATIZATION HAS LAGGED MANY GEORGIANS STILL WORK FOR THE GOVERNMENT THEY SUBSIST CHIEFLY ON SUBSIDIZED BREAD MOST OF IT MADE OF WHEAT DONATED BY THE US AND SOLD BY STATE BAKERIES FOR ABOUT 06 CENTS A LOAF TBILISI ONCE FAMOUS AS ONE OF THE BETTERSTOCKED SOVIET CITIES HAS BEEN LEFT WITH LITTLE TO OFFER GEORGIA'S 52 MILLION PEOPLE MEANWHILE MR SHEVARDNADZE GETS MUCH OF THE BLAME HE IS A REALLY GREAT STRATEGIST AND A REALLY GREAT DIPLOMAT BUT HE'S A CRUMMY GOVERNOR SAYS ELIZABETH HASKELL A US DEVELOPMENT CONSULTANT BASED IN TBILISI TO BE FAIR MR SHEVARDNADZE STEPPED INTO WHAT WAS ALREADY A DISINTEGRATING STATE WHEN HE FIRST RETURNED FROM MOSCOW TO HIS NATIVE GEORGIA IN MARCH 1992 HE BECAME LEADER OF THE PROVISIONAL GOVERNMENT FOLLOWING THE OUSTER OF MR GAMSAKHURDIA WHO BY SOME ACCOUNTS WAS A CRAZED NATIONALIST IN OCTOBER 1992 MR SHEVARDNADZE WON BY A LANDSLIDE UNCONTESTED IN PARLIAMENTARY ELECTIONS BECOMING CHAIRMAN OF PARLIAMENT AND HEAD OF STATE TODAY IT'S HARD TO FIND ENTHUSIAM FOR MR SHEVARDNADZE ON THE STREETS OF TBILISI PRAISE IS LARGELY LIMITED TO THE VIEW THAT THERE'S NOTHING BETTER ON OFFER WITH A RAGTAG GEORGIAN ARMY NUMBERING ONLY A FEW THOUSAND MR SHEVARDNADZE HAS FOUND NO OPTION BUT TO SPEND HIS POLITICAL SKILLS BALANCING ATOP ASSORTED PARAMILITARY GROUPS CHIEFLY THOSE SERVING UNDER THE TWO WARLORDS WHO IN 1992 INVITED HIM TO RETURN HOME AND LEAD GEORGIA TENGIZ KITOVANI AND DJABA IOSELIANI THESE IRREGULAR WARRIORS ESPECIALLY MR IOSELIANI'S MKHEDRIONI TROOPS OR KNIGHTS OF GEORGIA ARE ACCUSED BY MANY HERE OF USING THEIR PRIVATE ARSENALS NOT ONLY TO FIGHT FOR THEIR COUNTRY BUT TO PLUNDER IT A SHARE OF GEORGIA'S TROUBLES CAN BE LAID AT RUSSIA'S DOOR BY VARIOUS ACCOUNTS INCLUDING MR SHEVARDNADZE'S EARLIER THIS YEAR RUSSIA HAD BEEN STIRRING UP ACROSS ITS BORDER WITH NORTHERN GEORGIA THE VERY STRIFE IT HAS NOW AGREED TO HELP QUELL MOSCOW'S DESIGNS ON REESTABLISHING ITS INFLUENCE IN GEORGIA MIGHT ALSO BE JUDGED BY THE FOOTNOTE THAT NOT ONLY HAS RUSSIA KEPT THOUSANDS OF TROOPS IN GEORGIA BUT RUSSIAN GUARDS CONTINUE TO MAN THE OLD SOVIET BORDER BETWEEN GEORGIA AND TURKEY MR SHEVARDNADZE HOPES HIS RECENT DECISION FOR GEORGIA TO JOIN THE CIS WILL HELP REVIVE GEORGIA'S LIGHT INDUSTRY BUT A WESTERN OBSERVER HERE WARNS THAT EVEN IF GEORGIAN INDUSTRY GETS RUSSIAN AID TO POWER UP AGAIN THERE'S LITTLE DEMAND FOR THE PRODUCTS FORMERLY IMPOSED ON CAPTIVE SOVIET CONSUMERS SHEVARDNADZE DOESN'T UNDERSTAND THAT NO ONE IS GOING TO BUY THIS NONSENSE HE SAYS AND THE POSITION GEORGIA OCCUPIES AS A NEWLY ARRIVING MEMBER OF THE CIS CAN BE READ IN MR SHEVARDNADZE'S ANSWER TO A QUESTION ABOUT HOW EASY IT IS FOR HIM TO GET MR YELTSIN ON THE PHONE POINTING TO A LINEUP OF PHONES BEHIND HIS DESK MR SHEVARDNADZE SAYS IT'S EASIER FOR HIM TO REACH ME 9311020102 931102 HEARD ON THE STREET APPETITE FOR AU BON PAIN MAY BE WHETTED IF SOUR 3RDQUARTER RESULTS SOFTEN SHARE PRICE BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH THE STOCK MARKET STUCK NEAR A RECORD HEIGHT WALL STREET ANALYSTS ARE FORCED TO TURN LEMONS INTO LEMONADE APPROPRIATELY ENOUGH THIS IS BEING DONE WITH AU BON PAIN AN OPERATOR OF 172 FRENCHSTYLE BAKERY CAFES THAT SERVE UPSCALE SANDWICHES AND CROISSANTS FOR THE YUPPIE CROWD SMITH BARNEY SHEARSON'S L KEITH MULLINS SAYS INVESTORS SHOULD CONSIDER BUYING AU BON PAIN STOCKBECAUSE HE SAYS IT MAY BE IN FOR A BEATING HOW IS THAT AGAIN MR MULLINS SAYS AU BON PAIN'S THIRDQUARTER EARNINGS DUE OUT AFTER THE MARKET'S CLOSE TODAY ARE PROBABLY GOING TO BE BELOW CONSENSUS EXPECTATIONS OF 16 CENTS TO 18 CENTS A SHARE HE EXPECTS THE NASDAQTRADED STOCK TO DECLINE BECAUSE OF OTHER ANALYSTS' DOWNGRADES OR AN OVERREACTION BY SHORTTERM INVESTORS AND AT THAT POINT AU BON PAIN WILL BE A GOOD BUY HE FIGURES MR MULLINS RECENTLY SENT INVESTORS A NOTE TO SIGNAL THAT SUCH A BUYING OPPORTUNITY MAY BE PRESENTING ITSELF THIS SHOWS THE LENGTHS THAT ANALYSTS MUST GO TO FIND GOOD STOCKS TO RECOMMEND IN A HIGHPRICED MARKET IN THE PAST ANALYSTS COULD SIMPLY RECOMMEND GOOD STOCKS AT CHEAP PRICES NOW THEY MUST ROUND UP GOOD STOCKS AT HIGH PRICES AND PRAY THAT THEIR PICKS DECLINE TO MOREINVITING LEVELS FUNDAMENTALLY THIS COMPANY IS TERRIFIC MR MULLINS SAYS IN AN INTERVIEW WITH TRENDY SANDWICH FILLINGS SUCH AS CHICKEN TARRAGON AND BRIE CHEESE AND RELATIVELY QUICK SERVICE THEY UNDERSTAND AND TARGET THE URBAN OFFICE WORKER AS WELL AS ANYONE HAS EVER DONE THE ONLY PROBLEM HAS BEEN THAT THE STOCK PRICE AT 21 1/4 WHEN MR MULLINS WROTE HIS REPORT AND 19 3/4 YESTERDAY IS STILL TOO HIGH HOWEVER HE SAYS HE'D LOVE IT WHEN IT DROPS TO AROUND 17 OR 18 OR LOWER WE'RE GETTING THERE HE SAYS HOPEFULLY THE REASON AU BON PAIN IS STILL A HIGHRISK BET AT THE CURRENT PRICE IS THAT IT TRADES AT A HIGHFLYING 35 TIMES REPORTED EARNINGS THAT ISN'T AS BAD AS THE P/E MULTIPLE OF 60 WHEN THE YEAR STARTED BUT IT'S STILL ON THE LUXURIOUS SIDE EVEN FOR A SOLID RESTAURANT CONCEPT ON THE COVER OF LAST WEEK'S SMITH BARNEY SHEARSON REPORT ON EMERGING GROWTH STOCKS WHERE MOST OF THE STOCKS ARE LISTED AS SIMPLY BUYS OR SELLS AU BON PAIN GOT THE LABEL APPROACHING A BUYING OPPORTUNITY MR MULLINS SAYS THIRDQUARTER EARNINGS WILL BE AS LOW AS 15 CENTS A SHARE THE COMPANY WON'T COMMENT HE CITES LOWER PROFIT MARGINS FROM THE NEW YORK CITY MARKET BECAUSE OF RAPID EXPANSION THERE ALSO THE COMPANY WHICH OWNS 133 LOCATIONS AND HAS 39 MORE RUN BY FRANCHISEES HAS FALLEN BEHIND ON ITS DEVELOPMENT SCHEDULE AND SAYS IT WILL OPEN ONLY 21 OR 22 NEW LOCATIONS THIS YEAR RATHER THAN THE 26 PLANNED MR MULLINS SAYS ALL OF THESE NEGATIVE DEVELOPMENTS COULD HURT THE STOCK AND CREATE A BETTER ENTRY POINT FOR INVESTORS IN IT APPARENTLY THAT IS EXACTLY WHAT SOME INSTITUTIONAL INVESTORS ARE COUNTING ON DREYFUS CORP USED TO OWN MORE THAN 300000 AU BON PAIN SHARES IN ITS MUTUAL FUNDS AS THE PRICE RAN UP IT PARED THAT HOLDING TO A MERE 25000 SHARES IN ITS NEW LEADERS MUTUAL FUND BUT IT'S POISED TO PLUNGE BACK IN THOMAS FRANK RESEARCH CHIEF AND SENIOR PORTFOLIO MANAGER AT DREYFUS SAYS HE ADMIRES THE COMPANY'S MANAGEMENT ENOUGH THAT I NEVER WANTED TO BE FULLY SOLD I KNOW THERE'S A TIME WHEN I'D WANT TO REENTER THE STOCK WITH A SIZABLE INTEREST MR FRANK SAYS HE DOESN'T HAVE A SPECIFIC PRICE TARGET FOR JUMPING BACK AMONG THE FANS OF AU BON PAIN STOCK IS PETER LYNCH THE FORMER SUPERSTAR MANAGER OF FIDELITY INSTMENTS' MAGELLAN FUND WHO ALWAYS FAVORS STOCKS THAT TYPICAL CONSUMERS CAN UNDERSTAND SUCH AS PIER 1 IMPORTS AND HOME DEPOT A FEW MONTHS AGO MR LYNCH SAID ON TELEVISION THAT IF AU BON PAIN STOCK DECLINED A BIT HE'D BACK UP A TRUCK AND BUY SOME SHARES HE APPARENTLY HAS MR LYNCH NOW LISTS IT AMONG HIS FAVORITE STOCKS AT BOSTON HEADQUARTERS AU BON PAIN OFFICIALS SAY THEY PLAN SEVEN UNITS IN LOS ANGELES AND SAN FRANCISCO NEXT YEAR THE FIRST WEST COAST LOCATIONS ASIDE FROM AIRPORT OUTLETS IN SAN JOSE AND PORTLAND THERE'S A LOT OF GOOD COMPETITION OUT THERE BUT THERE ISN'T ANYONE THAT DOES QUITE WHAT WE DO THE WAY WE DO IT COCHAIRMAN LOUIS KANE SAYS IN ADDITION AU BON PAIN JUST OPENED ITS FIRST SITE OUTSIDE THE US IN CHILE THE ONLY CHANGE TO THE STANDARD MENU MR KANE SAYS WAS PILING AVOCADO ON ALL THE SANDWICHES 9311020101 931102 THE BEST PART OF LIFE FOR THESE AMERICANS IS NOT PAYING TAXES LINGERIE ADS GAMEBOY HELP EASE BOREDOM FOR THOSE MONITORING RUSSIA'S ARMS BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL VOTKINSK RUSSIA THE GATES OF RUSSIA'S MAIN ATOMICWEAPONS PLANT SWING OPEN TO LET OUT A LARGE RAIL CAR PERHAPS FERRYING A NUCLEAR MISSILE TO A RUSSIAN MILITARY BASE BUT FIRST IT HAS TO GET PAST THE AMERICANS THROUGH A QUIRKY COLD WARERA ARMSCONTROL TREATY A TEAM OF 30 US OBSERVERS IS STATIONED JUST OUTSIDE THE REMOTE RUSSIAN FACTORY LIVING IN A TINY OUTPOST OF AMERICANA THE AMERICANS ARE EMPOWERED TO MONITOR WHATEVER COMES THROUGH THE GATES AS THE RAIL CAR CREAKS TO A HALT VICTORIA REZNIK A 29YEAROLD AMERICAN IN BLUE JEANS AND COWBOY BOOTS LEAVES HER COMMAND POST IN A CONVERTED SHIPPING CONTAINER TO LEAD AN INSPECTION WITH TWO ASSISTANTS SHE CARRIES A CLIPBOARD TAPE MEASURE AND FLASHLIGHT AND REMOVES HER METAL EARRINGS A BIT OF STATIC ELECTRICITY COULD TRIGGER AN EXPLOSION THAT WOULD SHOOT THIS BABY ALL THE WAY TO HUNGARY EXPLAINS HER COLLEAGUE US ARMY MAJ TED KIRKPATRICK THE RAIL CAR IT TURNS OUT IS EMPTY THE INSPECTION QUICKLY COMES TO A CLOSE MS REZNIK AND HER COLLEAGUES RETURN TO THEIR COMMAND POST AND THEIR GAMEBOY VIDEO GAMES AND STACKS OF READING MATERIAL TRAVEL GUIDES VICTORIA'S SECRET CATALOGS AND OLD US NEWSPAPERS SO IT GOES IN THE SHADOW OF THE VOTKINSK MACHINE BUILDING FACTORY SINCE 1988 AMERICANS HAVE LIVED AND WORKED HERE BARRED FROM ENTERING THE PLANT OR EVEN PHOTOGRAPHING IT BUT ALLOWED TO INSPECT WHATEVER COMES OUT IT'S A MISSION FULL OF IRONIES THE AMERICANS HAVE JUST ONE TASK TO ENSURE THAT RUSSIA MAKES NO MORE SS20S OR OTHER MEDIUMRANGE MISSILES BANNED IN THE 1987 INTERMEDIATERANGE NUCLEAR TREATY HOWEVER WHEN OTHER MISSILES LIKE THE LONG RANGE SS25 EMERGE THE AMERICANS WAVE THEM THROUGH EVEN THOUGH THOSE WEAPONS WILL PROBABLY BE AIMED AT CITIES LIKE NEW YORK DETROIT AND WASHINGTON SINCE 1988 VOTKINSK HAS PRODUCED NEARLY 300 SS25S LIKE THE ARMSCONTROL TREATY THAT BROUGHT THE AMERICANS HERE THEIR HIGHLY RESTRICTED LIVING CONDITIONS ARE A RELIC OF THE COLD WAR CONFINED TO A TWOACRE CLEARING IN A VAST HEMLOCK AND BIRCH FOREST THE AMERICANS LIVE IN A COMPOUND OF FOUR TWOSTORY CINDERBLOCK BUILDINGS ONCE OR TWICE A MONTH A MISSILE ROLLS OUT IN A FREIGHT CAR FOR INSPECTION TURNING THE CAMP INTO A BEEHIVE OF ACTIVITY THE REST OF THE TIME THERE IS LITTLE TO DO AND THE BOREDOM IS INTENSE LIFE HERE SEEMS TO BE PART COUNTRY CLUB PART DETENTION CENTER UNDER THE TREATY THE AMERICANS CAN'T LEAVE THEIR BASE WITHOUT PERMISSION AND THAT USUALLY TAKES 24 HOURS TO GET EVEN THEN THEY CAN'T TRAVEL BEYOND 30 MILES AND MUST ALWAYS BE ACCOMPANIED BY A RUSSIAN SOCIAL ESCORT THE ROLES ARE REVERSED AT A RECIPROCAL RUSSIAN MONITORING BASE IN MAGNA UTAH JUST OUTSIDE HERCULES PLANT NO 1 WHICH USED TO PRODUCE PERSHING II ROCKET MOTORS THE US TRIES TO MAKE LIFE HERE AS AMERICAN AS POSSIBLE NO EASY FEAT IN THIS OUTPOST 600 MILES EAST OF MOSCOW EACH YEAR 45 TONS OF PROVISIONS ARE SHIPPED IN FROM THE US MORALEWISE WE BELIEVE THE LOCAL FOOD IS A NONSTARTER SAYS A MILITARY SPOKESMAN IN WASHINGTON COOLERS ARE STOCKED WITH MILLER BEER AND DIET COKE AND MILKY WAY CANDY BARS ABOUND THE BASE IS DOTTED WITH WEBER GRILLS AND PINKFLAMINGO LAWN ORNAMENTS IT'S A BIT STRANGE LIKE BEING IN MIDDLE AMERICA SAYS CHANNA COMANDAY A NURSE WHO IS HERE AS PART OF A TEAM OF TECHNICIANS FROM HUGHES TECHNICAL SERVICES CORP THE GENERAL MOTORS CORP UNIT HAS A CONTRACT TO PROVIDE SERVICES AT VOTKINSK GARY MARINO A US ARMSCONTROL INSPECTOR WHO HAS BEEN COMING TO VOTKINSK OFF AND ON FOR FIVE YEARS SEES IT DIFFERENTLY IT'S LIKE BEING IN A MINIMUMSECURITY PRISON WITH FRILLS PROBABLY LIKE THE PLACE WHERE NORIEGA STAYS ONE DIFFERENCE IT IS WINTER NINE MONTHS OF THE YEAR A TECHNICIAN TACK LIM 29 HAS ROTATED IN AND OUT OF VOTKINSK SINCE 1989 AND IT'S STARTING TO WEAR ON HIM THE NOVELTY HAS WORN OFF HE SAYS THIS TIME HE HAS PACKED A BOOK TO READ HE SAYS A REALLY LONG ONE VOTKINSK DUTY ISN'T ALL DRUDGERY FOR RECREATION THERE IS HORSESHOES VOLLEYBALL BASKETBALL AND TENNIS IN THE DORMLIKE BUILDINGS THERE ARE SEVEN TV LOUNGES AND 1300 FILMS ON VIDEOCASSETTE WITH THEIR LIVING COSTS PAID FOR BY THE PENTAGON THE STAFF CAN BANK MUCH OF THEIR SALARIES RANGING FROM 38000 TO 75000 WHICH IS EXEMPT FROM US AND RUSSIAN TAXES THE WORK SCHEDULE SIX TO NINE WEEKS ON THEN SIX TO NINE WEEKS OFF AND AWAY FROM HERE ALLOWS FOR LENGTHY LEISURE TRAVEL AND REUNIONS WITH FAMILY AND SPOUSES WHO ARE BANNED ON THE BASE AND DESPITE THE CLIMATE AND CONFINES OR PERHAPS BECAUSE OF THEM VOTKINSK CAN BE A HOTHOUSE FOR ROMANCE EVEN THOUGH LIAISONS ARE DISCOURAGED TWO INSPECTORS WHO MET ON BASE LEFT AND ENTERED MATRIMONY ON FIVE OTHER OCCASIONS AMERICAN MEN SERVING HERE WENT ON TO MARRY RUSSIAN WOMEN IN THE ESCORT UNIT ASSIGNED TO WATCH THEM MARRIAGE TO A RUSSIAN CAN RESULT IN AN INSPECTOR'S REMOVAL FROM THE ARMSCONTROL PROGRAM WITHOUT CAUSE MARRIAGE TO A RUSSIAN WOULD DISQUALIFY AN INSPECTOR FROM ARMSCONTROL WORK BUT BECAUSE THE WEDDINGS OCCURRED AFTER THE MEN HAD LEFT THE BASE THE PENTAGON DOESN'T CONSIDER THE MARRIAGES A SECURITY PROBLEM BUT IT IS BACK TO THE COLD WAR WHEN MISSILES EMERGE FOR INSPECTION ALTHOUGH THE AMERICANS HAVE A 15 MILLION XRAY IMAGER THE SIZE OF A RAIL CAR THE RUSSIANS LIMIT ITS USE TO TAKING IMAGES OF JUST TWO TINY SLICES OF THE SECOND STAGE OF EACH MISSILE THAT IS ENOUGH FOR THE AMERICANS TO DETERMINE WHETHER A MISSILE IS AN SS20 BUT EVEN SO THE QUESTION ARISES COULD THE RUSSIANS BE SMUGGLING OUT INTERMEDIATERANGE MISSILES IN SMALL PIECES AND REASSEMBLING THEM OUTSIDE THE FACTORY MAJ KIRKPATRICK TAKES A LONG PAUSE THEN ANSWERS YUP HOWEVER HE ADDS RUSSIA SAYS IT DOES FINAL ASSEMBLY ONLY IN VOTKINSK AND WE TAKE THEM AT THEIR WORD STILL AT LEAST TWICE A DAY THE AMERICANS TAKE A WALK AROUND THE WALLED THREEMILE PERIMETER OF THE FACTORY TO MAKE SURE THE RUSSIANS AREN'T SNEAKING MISSILES OUT A BACK WAY WHEN THERE IS SNOW ON THE GROUND WHICH IS MOST OF THE YEAR THE AMERICANS CIRCLE THE PLANT ON SKIS WITH THEIR RUSSIAN ESCORTS SKIING BEHIND ON A RECENT DAY AIR FORCE LT COL WILLIAM FRIESE THE BASE COMMANDER TOOK A PERIMETER STROLL SHADOWED BY HIS RUSSIAN ESCORT VIKTOR PONOSOV NOTING SOME UNRULY PLANTS COL FRIESE ISSUES A MILD PROTEST I'M CONCERNED ABOUT THE HIGH GROWTH AROUND THE WALL HE TELLS MR PONOSOV WITH AN AIR OF SERIOUSNESS MR PONOSOV WHO HAD BEEN COLLECTING PRETTY LEAVES ALONG THE WALK TRIES TO DISMISS THE CONCERN WE AREN'T SLIPPING MISSILES OVER THE WALLS HE SAYS WITH A GRIN IF WE WERE THE BUSHES WOULD BE COMPLETELY TRAMPLED THE PROTEST IS DROPPED FOR NOW BUT MAY BE RENEWED THE ARMS TREATY IS IN FORCE UNTIL 2001 9311020100 931102 ABREAST OF THE MARKET STRONG ECONOMIC REPORT SPARKS 1202 GAIN IN THE DOW TO A RECORD BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE EDGED TO A RECORD AFTER ANOTHER STRONGERTHANEXPECTED ECONOMIC READING SHARES OF COMPANIES WHOSE FORTUNES CLOSELY FOLLOW THE DIRECTION OF THE ECONOMY DREW THE MOST BUYERS TRANSPORTATION BASIC MATERIALS AND LARGE TECHNOLOGY STOCKS WERE STRONG THE DOW JONES INDUSTRIAL AVERAGE GAINED 1202 TO 369261TOPPING THE PREVIOUS RECORD OF 368786 THE AVERAGE SET HIGHS TWICE LAST WEEK BROADBASED INDEXES ALSO ADVANCED BUT ARE 01 TO 03 SHORT OF THE HIGHS THEY SET OCT 15 BIG BOARD ADVANCERS LED DECLINERS 1078 TO 957 VOLUME WAS MODERATELY ACTIVE AT 253847150 SHARES DOWN FROM 266568280 FRIDAY THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT A TRADE GROUP SET OFF THE CYCLICAL STOCK BUYING IN THE MORNING IT SAID ITS INDEX OF MANUFACTURING BUSINESS ROSE TO 538 LAST MONTH FROM 497 IN SEPTEMBER AND ABOVE THE 509 READING ANALYSTS FORECAST STOCKS STARTED THE SESSION LOWER FOLLOWING THE COURSE OF BONDS WHICH TUMBLED ON THE ECONOMIC READING BUT ALTHOUGH TREASURYS STAYED DEPRESSED STOCK PRICES QUICKLY RECOVERED TO LITTLECHANGED LEVELS AND THEN RALLIED IN THE FINAL TWO HOURS OF TRADING THE STANDARD & POOR'S 500STOCK INDEX GAINED 127 OR 027 TO 46910 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX INCREASED 056 OR 022 TO 25994 AND THE DOW JONES EQUITY MARKET INDEX CLIMBED 112 OR 025 TO 44407 FORESTPRODUCTS STOCKS LED THE CHARGE FOR CYCLICAL STOCKS LUMBER STOCKS WERE AIDED BY A TRADE GROUP REPORT FRIDAY THAT SHOWED BIG GAINS THIS YEAR IN WOODPRODUCTS PRICES PAPERRELATED STOCKS REBOUNDED FROM A POUNDING LATE FRIDAY AFTER A BROKERAGE FIRM ANALYST MADE CAUTIONARY COMMENTS ABOUT NEW REGULATIONS PROPOSED BY THE ENVIRONMENTAL PROTECTION AGENCY A MARSHALL ACUFF PORTFOLIO STRATEGIST AT SMITH BARNEY SHEARSON SAID GAINS IN TRANSPORTATION AND MANY LEADING TECHNOLOGY STOCKS ALSO WERE TIED TO BETS THAT THE RECOVERY IS GAINING STRENGTH THE DOW JONES TRANSPORTATION AVERAGE SURGED 1517 OR 088 TO 174224 THE FOURTH RECORD IN THE PAST FIVE SESSIONS TRUCKING STOCKS WERE THE STRONGEST UP 139 AS MEASURED BY THE DOW JONES EQUITY MARKET INDEX INTERNATIONAL BUSINESS MACHINES WAS AMONG THE STRONGEST IN THE TECHNOLOGY GROUP THE LONGBATTERED STOCK ROSE 1 3/4 TO 47 3/4 EVEN THOUGH OBSERVERS SAID THERE WASN'T ANY SIGNIFICANT NEWS RELEASED REGARDING THE COMPANY PETER CARDILLO A SENIOR VICE PRESIDENT AT WESTFALIA INVESTMENTS SAID CORPORATIONS SUCH AS IBM THAT ARE PURSUING MAJOR RESTRUCTURINGS COULD GET A STRONG BOOST FROM AN IMPROVING ECONOMY SUCH STREAMLININGS CAN INCREASE EFFICIENCY AND PROFIT MARGINS COMPAQ COMPUTER JUMPED 1 3/8 TO 68 7/8 AFTER THE HOUSTON COMPANY UNVEILED 10 MODELS OF ITS PRESARIO PERSONAL COMPUTER SEPARATELY IT CUT PRICES ON SOME OF ITS DESKTOP AND PORTABLES BY 10 TO 23 AMONG OTHER COMPUTERRELATED STOCKS DIGITAL EQUIPMENT ADDED 1 1/4 TO 36 7/8 AND TEXAS INSTRUMENTS CLIMBED 1 TO 66 5/8 ON THE NASDAQ STOCK MARKET MICROSOFT ROSE 3/4 TO 80 7/8 AND CISCO SYSTEMS RALLIED 2 1/4 TO 53 1/2 TECHNOLOGY STOCKS HELPED TO POWER THE NASDAQ COMPOSITE INDEX TO A GAIN OF 451 OR 058 TO 78377 IT IS ABOUT 05 FROM A RECORD DEAN FOODS RALLIED 1 1/2 TO 27 1/8 THE FRANKLIN PARK ILL COMPANY AGREED TO BUY THE BIRDS EYE FROZEN VEGETABLE OPERATIONS OF PHILIP MORRIS FOR 140 MILLION THE UNIT HAS ANNUAL SALES OF ABOUT 250 MILLION PHILIP MORRIS SHARES ADDED 1/2 TO 54 1/4 BLOCKBUSTER ENTERTAINMENT EASED 3/8 TO 28 THE FORT LAUDERDALE FLA VIDEO RENTAL CONCERN SAID IT PLANS TO SELL AN ADDITIONAL 127 MILLION COMMON SHARES PROCEEDS WILL BE USED TO REDUCE DEBT CAPITAL CITIES/ABC ADDED 6 3/8 TO 616 THE NEW YORK TELEVISION AND RADIO COMPANY SAID IT WILL BUY BACK AS MANY AS TWO MILLION SHARES OR 12 OF ITS COMMON STOCK OUTSTANDING MYLAN LABORATORIES JUMPED 2 1/4 TO 31 3/4 AFTER THE PITTSBURGH COMPANY RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO MARKET TWO NEW GENERIC DRUGS A VERSION OF BRISTOLMYERS SQUIBB'S CORGARD ANGINA TREATMENT AND A FORM OF ICI PHARMA'S TENORETIC HYPERTENSION DRUG ADVANTA CLASS A ADDED 1 1/2 TO 45 1/2 ON NASDAQ THE CLAYMONT PA BANKING AND CREDITCARD SERVICES COMPANY SAID EARNINGS SHOULD BE AT A RECORD LEVEL IN 1993 LAST YEAR IT HAD NET INCOME OF 48 MILLION OR 208 A SHARE MCDONNELL DOUGLAS SOARED 4 3/8 TO 98 1/8 THE ST LOUIS AEROSPACE COMPANY REPORTED PROFIT OF 257 A SHARE FOR THE THIRD QUARTER EXCLUDING A ONETIME GAIN COMPARED WITH A LOSS FROM CONTINUING OPERATIONS OF 212 A SHARE A YEAR EARLIER SHARES OF THE BIG THREE AUTO MAKERS GAINED GROUND CHRYSLER ROSE 1 1/2 TO 57 3/8 FORD MOTOR ADDED 3/4 TO 62 5/8 AND GENERAL MOTORS ADVANCED 5/8 TO 48 1/4 9311020099 931102 CAPITAL CITIES PLANS BUYBACK OF 12 OF SHARES MURPHY TO TAKE CEO POST SOME SAY FIRM IS NOW POSSIBLE TAKEOVER TARGET BY ELIZABETH JENSEN AND LAURA LANDRO STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK CAPITAL CITIES/ABC INC ANNOUNCED A MORE THAN 1 BILLION REPURCHASE OF 12 OF ITS SHARES THROUGH A DUTCH AUCTION AND SAID CHAIRMAN THOMAS MURPHY WILL REASSUME THE POST OF CHIEF EXECUTIVE OFFICER EARLY NEXT YEAR WHEN PRESIDENT AND CHIEF EXECUTIVE DANIEL BURKE RETIRES BOTH MOVES COME AS THE BROADCASTING AND PUBLISHING COMPANY WHICH OWNS THE ABC NETWORK JOCKEYS TO POSITION ITSELF IN THE CURRENT FRENZIED CLIMATE OF ENTERTAINMENT AND COMMUNICATIONS MERGERS THE COMPANY HAS BEEN UNABLE TO FIND A MAJOR ACQUISITION AND SOME ON WALL STREET SAID ITS STOCK BUYBACK PLAN AND ITS DECISION NOT TO RECRUIT A NEW CHIEF EXECUTIVE MAKES CAPITAL CITIES A POTENTIAL ACQUISITION CANDIDATE CAPITAL CITIES STRONGLY DENIED THAT WAS THE CASE NO ONE WHO READS THE OFFERING MATERIAL FOR THE BUYBACK OR WHO KNOWS ANYTHING ABOUT THE COMPANY COULD POSSIBLY BELIEVE THAT A COMPANY SPOKESWOMAN SAID AND SOME LARGE INSTITUTIONAL INVESTORS SAID A SALE OF THE COMPANY SEEMS UNLIKELY PARTICULARLY SINCE WARREN BUFFETT THE BERKSHIRE HATHAWAY INC CHAIRMAN WHO CONTROLS 18 OF CAPITAL CITIES WILL TENDER ONE MILLION OF HIS THREE MILLION SHARES ON THE CONDITION THAT ALL ONE MILLION SHARES BE REPURCHASED BUFFETT WOULDN'T BE SELLING NOW IF THEY WERE ACTIVELY SHOPPING THE COMPANY ONE CAPITAL CITIES SHAREHOLDER SAID HOWEVER THE SHAREHOLDER ADDED THAT WITHIN THE NEXT THREE YEARS HE EXPECTS ALL OF THE THREE MAJOR NETWORKS WILL BE PART OF SOME VERTICALLY INTEGRATED BEHEMOTH ALTHOUGH CAPITAL CITIES SAID JUST A YEAR AGO THAT IT WAS INTERESTED IN MAKING AN ACQUISITION IN THE 5 BILLION TO 8 BILLION RANGE THE COMPANY SAID IN A STATEMENT YESTERDAY THAT MAJOR ACQUISITIONS HAVE NOT BEEN AVAILABLE AT PRICES THE COMPANY BELIEVES WOULD RESULT IN ATTRACTIVE RETURNS FOR ITS SHAREHOLDERS CAPITAL CITIES DIDN'T IDENTIFY WHICH COMPANIES IT HAD CONTEMPLATED ACQUIRING HOWEVER PEOPLE FAMILIAR WITH THE COMPANY'S TALKS SAY THAT AMONG OTHERS IT HAD HAD DISCUSSIONS WITH PARAMOUNT COMMUNICATIONS INC AND TURNER BROADCASTING SYSTEM INC CAPITAL CITIES SAID IT BELIEVES THE BEST USE OF ITS AVAILABLE CASH FOR ITS SHAREHOLDERS IS A REPURCHASE OF TWO MILLION OR 12 OF ITS 164 MILLION SHARES OUTSTANDING CAPITAL CITIES ADDED THAT IF A POSSIBILITY FOR AN ACQUISITION AROSE THE COMPANY BELIEVES IT WOULD STILL HAVE ACCESS TO CAPITAL TO PURSUE A PURCHASE LARRY HAVERTY A FUND MANAGER AT STATE STREET RESEARCH IN BOSTON SAID THEY SEEM TO BE PUTTING A FOR SALE' SIGN ON THE COMPANY MR HAVERTY WHOSE FUND DOES NOT OWN CAPITAL CITIES STOCK ADDED THEY HAVE TOO MUCH EQUITY AND NO PLACE TO REINVEST SHRINKING THEIR CAPITALIZATION MAKES IT EASIER FOR SOMEONE TO COME IN AND ACQUIRE THEM MR HAVERTY SPECULATED THAT IN THIS CLIMATE THE COMPANY COULD FETCH A SALE PRICE OF MORE THAN 700 PER SHARE CAPITAL CITIES/ABC SHARES JUMPED 6375 TO CLOSE AT 616 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FOLLOWING THE ANNOUNCEMENT OF THE DUTCH AUCTION IN A DUTCH AUCTION THE BUYER SETS A PRICE RANGE AND HOLDERS GIVE A PRICE AT WHICH THEY ARE WILLING TO SELL SHARES THE BUYER THEN SELECTS A PRICE AND PAYS THAT AMOUNT TO HOLDERS WHO OFFERED TO SELL AT OR BELOW THAT PRICE IN THE CAPITAL CITIES AUCTION SHAREHOLDERS WHO WISH TO SELL CAN OFFER SHARES AT A PRICE BETWEEN 590 AND 630 A SHARE THE COMPANY WILL SELECT THE LOWEST SINGLE PRICE IN THAT RANGE AT WHICH TWO MILLION SHARES ARE OFFERED AT THAT PRICE RANGE PURCHASE OF TWO MILLION SHARES WOULD COST BETWEEN 118 BILLION AND 126 BILLION NORMALLY INVESTORS WHO CHOOSE TO SELL BACK LARGE BLOCKS OF STOCK WOULD BE TREATED ON A PRORATED BASIS IF MORE THAN TWO MILLION SHARES ARE OFFERED FOR SALE THAT IS ONLY A PORTION OF THEIR SHARES WOULD BE PURCHASED BUT MR BUFFETT'S CONDITION FOR TENDERING ANY OF HIS COMPANY'S CAPITAL CITIES SHARES A DEAL WHICH CAPITAL CITIES HAS ACCEPTED IS ESSENTIALLY AN ALLORNOTHING PROPOSITION DEPENDING ON WHERE MR BUFFETT'S SHARES ARE PRICED AND HOW MANY OTHER SHARES ARE OFFERED BERKSHIRE COULD END UP WITH JUST 13 OF THE OUTSTANDING SHARES OR WITH AS MUCH AS 21 IF NONE OF BERKSHIRE HATHAWAY'S CAPITAL CITIES SHARES ARE ACCEPTED MR BUFFETT OWNS 416 OF BERKSHIRE HATHAWAY MR BUFFETT'S UNUSUAL DEAL WAS THE SOURCE OF MUCH SPECULATION ON WALL STREET AS TO WHETHER HE WAS USING THE OPPORTUNITY TO REDUCE HIS STAKE OR MERELY TRYING TO ENTICE OTHER SELLERS SO CAPITAL CITIES COULD BUY AT AN ATTRACTIVE PRICE ANALYSTS NOTED THAT MR BUFFETT'S MOVE ALLOWS HIM TO GET SOME LIQUIDITY BY CASHING IN SOME CAPITAL CITIES SHARES WITHOUT SELLING THEM ON THE OPEN MARKET AND CAUSING A MAJOR DISRUPTION MR BUFFETT DECLINED TO COMMENT BY RETURNING THE 68YEAROLD MR MURPHY TO THE JOB OF CHIEF EXECUTIVE CAPITAL CITIES ALSO KEEPS IN PLACE AN AGREEMENT THAT IT HAD WITH MR BUFFETT THROUGH 1997 THAT AGREEMENT TURNS OVER VOTING RIGHTS ON MR BUFFETT'S STOCK TO MR BURKE AND MR MURPHY AS LONG AS ONE OF THE TWO IS CHIEF EXECUTIVE MR MURPHY'S RETURN TO THE CEO'S POST HAS BEEN RUMORED FOR WEEKS HE RELINQUISHED THAT JOB IN 1990 TO MR BURKE WHO IS DUE TO RETIRE ON OR ABOUT FEB 4 HIS 65TH BIRTHDAY THE ISSUE OF MANAGEMENT SUCCESSION HAS BEEN A TROUBLESOME ONE FOR CAPITAL CITIES WHICH HAD NO INTERNAL CANDIDATE WHO WAS CONSIDERED READY TO TAKE THE TOP JOB ROBERT IGER PRESIDENT OF THE ABC TELEVISION NETWORK GROUP DIVISION IS THE TOPRANKING CORPORATE EXECUTIVE UNDER MR BURKE BUT IS VIEWED AS A FUTURE CONTENDER WHO HASN'T HAD THE EXPERIENCE NECESSARY YET BY APPOINTING MR MURPHY CHIEF EXECUTIVE THE COMPANY IS PLAYING FOR TIME SAID JOHN TINKER AN ANALYST AT FURMAN SELZ INC MR MURPHY AND MR BURKE HAVE BEEN ONE OF THE SMARTEST MANAGEMENT TEAMS AROUND AND NOW THE ISSUE IS WHERE DO YOU TAKE THE COMPANY THEY'VE GOT TO FIGURE OUT WHAT TO DO EVEN AFTER THE STOCK BUYBACK HE NOTES THE COMPANY WILL BE VIRTUALLY DEBT FREE THE COMPANY OBVIOUSLY CAME TO THE CONCLUSION THAT THE WAY MEDIA PROPERTIES WERE GOING AT THIS POINT THERE WAS NOTHING THEY COULD RATIONALLY BUY SAID DAVID LONDONER A MEDIA ANALYST AT WERTHEIM SCHRODER HE CALCULATED THAT THE BUYBACK BY SHRINKING THE NUMBER OF SHARES OUTSTANDING WOULD ADD ABOUT 250 A SHARE TO PROJECTED 1994 EARNINGS PUSHING THEM TO ABOUT 3465 OTHER ANALYSTS HAVE PREDICTED SLIGHTLY HIGHER PERSHARE EARNINGS CS FIRST BOSTON WILL BE THE DEALER MANAGER FOR THE STOCK OFFER 9311020098 931102 MARKETING & MEDIA MARKETSCAN POST BREAKFASTCEREALS ARE WAKING UP BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL IT'S POST TIME IN THE BREAKFASTCEREAL DERBY KELLOGG CO AND GENERAL MILLS INC REMAIN FAR AHEAD BUT KRAFT GENERAL FOODS' POST DIVISION IS COMING ON STRONG FOR YEARS POST WAS A LAGGARD THIRD AS THE PARENT COMPANY SEEMED MORE ENAMORED OF KOOLAID JELLO AND OTHER PROVEN WINNERS IN THE COMPANY'S SPRAWLING BRAND STABLE BUT NOW CEREAL'S TANTALIZING PROFIT MARGINS AND SEEMINGLY PERPETUAL GROWTH HAVE CAPTURED KRAFT'S ATTENTION AND THE COMPANY IS POURING ON THE PROMOTION MONEY LIKE KIDS SUGARING CORN FLAKES IN THE FIRST HALF OF 1993 KRAFT A UNIT OF PHILIP MORRIS COS SPENT NEARLY AS MUCH ON MEDIA ADVERTISING FOR ITS CEREALS AS DID GENERAL MILLS 793 MILLION COMPARED WITH 822 MILLION ACCORDING TO COMPETITIVE MEDIA REPORTING POST ALSO HAS BEEN A BIG SPENDER ON COUPON REDEMPTIONS SHELLING OUT 1073 MILLION FOR THE FIRST EIGHT MONTHS OF THE YEAR COMPARED WITH 1533 MILLION BY GENERAL MILLS AND 1631 MILLION BY KELLOGG SAYS CHICAGOBASED PROMOTION INFORMATION MANAGEMENT POST LATELY HAS BEEN FLOODING SUNDAY SUPPLEMENTS WITH 1OFF COUPONS COUPONS PLAY A HUGE ROLE IN CEREAL SALES NCH PROMOTIONAL SERVICES LINCOLNSHIRE ILL CALCULATES THAT NEARLY 38 OF ALL CEREAL VOLUME OR ABOUT 3 BILLION WORTH WAS PURCHASED WITH COUPONS LAST YEAR NCH SAYS THE AVERAGE FACE VALUE OF CEREAL COUPONS LAST YEAR WAS ABOUT 79 CENTS SO FAR THIS YEAR IT IS 90 CENTS THE PROMOTIONAL AND ADVERTISING INVESTMENT IS PAYING OFF NICELY FOR POST ITS CEREALS FINISHED THE 52 WEEKS ENDED SEPT 12 WITH ALMOST 975 MILLION IN SUPERMARKET SALES A 14 INCREASE THAT BOOSTS ITS SHARE OF THE 8 BILLION DOMESTIC READYTOEAT CEREAL MARKET TO 125 ACTUALLY THOSE NUMBERS UNDERSTATE POST'S POSITION THEY DON'T INCLUDE 260 MILLION IN SALES OR AN ADDITIONAL 33 SHARE POINTS PICKED UP EARLIER THIS YEAR WHEN KRAFT ACQUIRED THE NABISCO CEREAL LINE FROM RJR NABISCO HOLDINGS CORP NOR DO THE SALES DATA COLLECTED FROM SUPERMARKETS BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE COUNT CEREAL SALES AT RESTAURANTS SCHOOLS CONVENIENCE STORES AND OTHER OUTLETS ALTOGETHER POST HAS WELL OVER 1 BILLION IN ANNUAL SALES IN THE SAME 52 WEEKS KELLOGG'S SALES FELL 01 TO 27 BILLION FOR A MARKET SHARE OF 35 GENERAL MILLS'S DOLLAR SALES ROSE 55 TO 23 BILLION GIVING IT A 295 MARKET SHARE BUT THE INFOSCAN NUMBERS SHOW A SIGNIFICANT 32 DOLLAR SALES DECLINE FOR CHEERIOS THE NATION'S LEADING CEREAL GENERAL MILLS ATTRIBUTES THE SLIPPAGE PARTLY TO THE INTRODUCTION OF MULTIGRAIN CHEERIOS AND SAYS SALES OF ITS YELLOWBOX CORE BRAND ARE REBOUNDING CEREAL'S RENAISSANCE AT KRAFT GENERAL FOODS COMES IN WHAT IS BELIEVED TO BE A BROADBASED REVIEW OF ITS PRODUCT LINES THE NATION'S LARGEST FOOD COMPANY LATELY HAS BEEN TRYING TO CLEAN OUT ITS REFRIGERATOR OF SOME BUSINESSES INCLUDING ICE CREAM AND FROZEN VEGETABLES GRAPENUTS POST'S LEADING BRAND PICKED UP ABOUT 1 IN SALES IN THE PAST YEAR GIVING IT A 21 MARKET SHARE ITS NO 2 BRAND RAISIN BRAN JUMPED 125 IN SALES TO 119 MILLION SOME OF THAT GROWTH APPARENTLY CAME AT THE EXPENSE OF RIVAL KELLOGG WHOSE RAISIN BRAN SLIPPED 45 IN DOLLAR SALES DURING THE PERIOD YET WITH 2053 MILLION IN SALES KELLOGG'S RAISIN BRAN STILL EASILY OUTSELLS POST'S HONEY BUNCHES OF OATS AND FRUITY PEBBLES POST'S THIRD AND FOURTH TOP SELLERS BOTH HAVE ABOUT 96 MILLION IN ANNUAL SALES GIVING EACH SLIGHTLY MORE THAN ONE SHARE POINT WHILE THE WIDE ARRAY OF CEREALS PREVENTS ANY FLAKE FROM HOLDING MORE THAN THREE OR FOUR SHARE POINTS A BRAND CAN REAP HANDSOME REWARDS FOR ITS MAKER BY CAPTURING JUST ONE POINT REPRESENTING ABOUT 80 MILLION IN ANNUAL SALES FEW BUSINESSES CAN MAKE THAT BOAST THE CEREAL GIANTS' BIG ESTABLISHED BRANDS ARE GETTING THE HEAVIEST ADVERTISING SUPPORT COMPETITIVE MEDIA REPORTING WHICH TRACKS MEDIA SPENDING REPORTS THAT LAST YEAR KELLOGG SPENT 32 MILLION PROMOTING CORN FLAKES GENERAL MILLS 308 MILLION ON CHEERIOS AND POST 27 MILLION ON GRAPENUTS BOXES OF CRUNCHY GRAPENUTS NUGGETS FIRST CAME TO MARKET BACK IN 1897 AS COMPANY FOUNDER CHARLES WILLIAM POST TUSSLED WITH RIVAL WK KELLOGG'S BATTLE CREEK TOASTED CORN FLAKES CO IN WHAT QUICKLY BECAME KNOWN AS CEREAL CITY USA BATTLE CREEK MICH MR POST'S FIRST PRODUCT WAS POSTUM A COFFEE SUBSTITUTE MADE FROM BRAN WHEAT AND MOLASSES HIS ANSWER TO KELLOGG'S CORN FLAKES WAS POST TOASTIES CALLED ELIJAH'S MANNA UNTIL CLERGY COMPLAINED THE NAME WAS SACRILEGIOUS MR POST'S ONLY CHILD MARJORIE MERRIWEATHER POST LATER PARLAYED THE BUSINESS INTO GENERAL FOODS CORP WITH HELP FROM HUSBAND EF HUTTON IN THE MID1970S POST WAS TIED WITH GENERAL MILLS FOR SECOND PLACE IN CEREALS BUT NOTES KIDDER PEABODY ANALYST DAVID RABINOWITZ BETWEEN 1975 AND 1989 POST MANAGED TO LOSE ONETHIRD OF ITS MARKET SHARE CEREALS LANGUISHED AS GENERAL FOODS MANAGEMENT CONCENTRATED ON FROZEN FOODS DESSERTS AND COFFEE THEY WERE SITTING AROUND NOT DOING VERY MUCH SAYS JOHN C MAXWELL JR FOOD ANALYST AT WHEAT FIRST SECURITIES IN RICHMOND VA OF THE POST DIVISION TODAY HE SAYS THE COMPANY IS TAKING A GOOD LOOK AT EVERYTHING POST EXECUTIVES DECLINED TO BE INTERVIEWED FOR THIS ARTICLE NOVELTY IS A BIG PART OF THE BREAKFASTCEREAL BUSINESS BUT POST HASN'T BEEN NEARLY AS AGGRESSIVE AS ITS RIVALS IN HATCHING NEW CEREALS SINCE 1989 IT HAS ADDED ONLY FOUR THAT STILL ARE ON SHELVES HONEY BUNCHES GREAT GRAINS BANANA NUT CRUNCH AND MOST RECENTLY BRAN'NOLA A LOWFAT GRANOLA MIXED WITH BRAN THAT COMPARES WITH PERHAPS THAT MANY A YEAR EACH FROM KELLOGG AND GENERAL MILLS ALTHOUGH WALL STREET LATELY HAS BEEN MORE CIRCUMSPECT IN ENDORSING STOCKS OF CEREAL MAKERS CONCERNED ABOUT PROFIT MARGINS AND SPIRALING COSTS OF PROMOTION ANALYSTS REMAIN BULLISH ON THE BUSINESS LONG TERM AS THE SOCALLED BABY BOOM GENERATION REACHES MIDDLE AGE CEREAL CONSUMPTION IS EXPECTED TO INCREASE SIGNIFICANTLY SAYS TERRY BIVENS AT ARGUS RESEARCH CORP BOOMERS' CHILDREN ARE PASSING THROUGH THE 6TO17 AGE GROUP WHERE CEREAL CONSUMPTION IS HIGHEST CEREAL REMAINS ONE OF THE FEW GROWTH AREAS IN AN OTHERWISE MATURE US FOOD MARKET 9311020097 931102 ECONOMY CLINTON MAKES 11THHOUR BID FOR NAFTA SUGGESTS REJECTION COULD BENEFIT JAPAN BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON EXECUTING HIS 11THHOUR STRATEGY FOR WINNING APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT PRESIDENT CLINTON TRIED TO RAISE FEARS THAT JAPAN MAY ENACT ITS OWN DEAL WITH MEXICO IF CONGRESS FAILS TO APPROVE NAFTA IN A SPEECH BROADCAST TO BUSINESS GROUPS IN 200 CITIES BY THE US CHAMBER OF COMMERCE MR CLINTON JOINED OTHER MEMBERS OF HIS ADMINISTRATION IN PROMOTING THE ACCORD BY SUGGESTING JAPAN WOULD PROSPER IF THE US FAILS TO CREATE A FREETRADE ZONE WITH MEXICO AND CANADA IT EXEMPLIFIED THE WHITE HOUSE'S GAMBIT OF USING JAPANBASHING AS A TOOL TO SHIFT ATTENTION FROM THE ARGUMENTS OF NAFTA OPPONENTS WHO CONTEND THE ACCORD WILL COST AMERICAN JOBS AT ONE POINT MR CLINTON EVEN DECLARED WHAT HE WOULD DO IF HE WERE THE JAPANESE PRIME MINISTER AND THE PACT WERE REJECTED MR CLINTON ALSO PREDICTED THAT NAFTA WOULD GAIN A MAJORITY OF VOTES IN THE HOUSE THIS MONTH BUT THE OPPOSITION YESTERDAY WAS INCHING CLOSER TO THE VOTES NEEDED TO DEFEAT IT TWO MORE MEMBERS CAME OUT AGAINST THE PACT POWERFUL REP JOHN DINGELL OF MICHIGAN AND FRESHMAN REP DAVID MINGE OF MINNESOTA TWO HOUSE DEMOCRATS WHO OFFICIALLY HAD BEEN UNDECIDED BUT EXPECTED TO OPPOSE THE ACCORD THE OPPOSITION SAID IT HAS 210 FIRM NO VOTES JUST EIGHT SHORT OF A HOUSE MAJORITY WHITE HOUSE AIDES HOWEVER PUT THE OPPOSITION'S FIRM COUNT AT 190 VOTES BUT CONCEDED THEY DON'T YET HAVE THAT MANY IN ONE OF HIS MOST IMPASSIONED APPEALS TO DATE MR CLINTON ASKED BUSINESSES TO DO MORE TO PUSH FOR THE ACCORD AND CHALLENGED THOSE MEMBERS OF CONGRESS WHO QUIETLY SUPPORT NAFTA BUT ARE CONCERNED ABOUT A BACKLASH FROM LABOR UNIONS IF THEY SUPPORT IT I THINK IF THERE WERE A SECRET VOTE IN THE CONGRESS TODAY WE WOULD WIN MR CLINTON SAID NOTING THAT THE PRESSURES AGAINST NAFTA ARE ENORMOUS BUT HE COMPARED THE SITUATION TO THE SHOWDOWN OVER HIS BUDGET WHICH SQUEAKED THROUGH THIS SUMMER HOWEVER MR CLINTON ALSO RAISED FEARS THAT WHILE HE COULD WIN A CLOSE VOTE THERE COULD BE A STAMPEDE IN THE OTHER DIRECTION IF LAWMAKERS SMELLED THAT NAFTA WAS GOING DOWN IN ORDER TO WIN BY A VOTE OR TWO OR THREE OR FOUR YOU HAVE TO BE CLOSE SO THAT THERE IS A MAGNET LEADING PEOPLE TO TAKE THE RIGHT DECISION HE SAID IF THE MEMBERS OF THE CONGRESS WHO ARE UNDER SO MUCH PRESSURE FROM ORGANIZED GROUPS WHETHER IT'S THE PEROT CROWD OR THE LABOR GROUPS IF THEY SENSE THAT IT'S NOT CLOSE THEY MIGHT RUN AWAY FROM IT IN GREAT NUMBERS WHICH IS WHY YOUR EFFORTS ARE SO IMPORTANT MR CLINTON ACKNOWLEDGED THAT THE REAL JOB GAINS IN NAFTA WON'T BE THE 200000 JOBS THAT THE ADMINISTRATION ESTIMATES THE PACT WILL CREATE BY 1995 BUT THE BOOST TO THE US ECONOMY WHEN SIMILAR PACTS ARE MADE WITH CHILE ARGENTINA COLOMBIA AND VENEZUELA SUCH A MOVE HE SAID WOULD ENABLE US TO CREATE A CONSUMER MARKET OF OVER 700 MILLION PEOPLE SOON TO BE OVER ONE BILLION PEOPLE EARLY IN THE NEXT CENTURY THEN SAID MR CLINTON THE US CAN USE THAT LEVERAGE TO SAY TO ASIAN AND EUROPEAN COUNTRIES IT'S OK FOR YOU TO HAVE TRADING BLOC BUT WE NEED TO OPEN UP TRADE WORLDWIDE MOREOVER MR CLINTON SOUGHT TO REFUTE THE OPPONENTS' CLAIMS THAT US JOBS WOULD MOVE TO MEXICO BY CITING HAITI WHICH HAS SOME OF THE LOWEST WAGES IN THE WORLD IF ALL BUSINESS CARED ABOUT WAS CHEAP LABOR MR CLINTON SAID THE HEADLINES IN HAITI TODAY WOULD BE GENERAL MOTORS SHUTS DOWN IN MICHIGAN OR CATERPILLAR LEAVES ILLINOIS GOES TO PORTAUPRINCE THE PRESIDENT AND ATTORNEY GENERAL JANET RENO ARGUED THAT THE PACT BY CREATING MORE JOBS IN MEXICO PROBABLY WOULD REDUCE ILLEGAL IMMIGRATION IN THE US RATHER THAN INCREASE IT NAFTA IS THE ONLY VIABLE WAY TO DEAL WITH THE ISSUE OF IMMIGRATION LONG RANGE MS RENO SAID DURING A NEWS CONFERENCE WITH FOUR OUTSIDE EXPERTS ON THE TRADE ACCORD AS FAR AS I'M CONCERNED MS RENO ADDED IF WE DON'T HAVE NAFTA THE SITUATION CAN ONLY GET WORSE DESPITE THE PUSH FOR NAFTA THE ADMINISTRATION SEEMS TO BE SLOWING DOWN A MOVE TO IMPOSE QUOTAS ON DURUM WHEAT SHIPMENTS FROM CANADA US WHEAT GROWERS BACKED BY SEVERAL SENATORS AND ABOUT A DOZEN HOUSE MEMBERS HAD COMPLAINED THAT CANADA WAS SELLING THE WHEAT AT BELOWMARKET PRICES AND SOME OF THEM HAD HITCHED THEIR SUPPORT FOR NAFTA TO ADMINISTRATION ACTION ON THEIR COMPLAINT BUT ADMINISTRATION OFFICIALS NOW SAY THEY ARE RETHINKING WHETHER TO IMPOSE QUOTAS QUICKLY THEY SAID THAT SUCH A MOVE COULD FORCE THE NEW GOVERNMENT IN CANADA WHICH CAMPAIGNED ON AN ANTINAFTA PLATFORM TO PRESS THE US TO RENEGOTIATE THE TRADE PACT 9311020096 931102 LAW LEGAL BEAT DEFENDING UTILITIES AGAINST SUITS ON EMF EXPOSURE GETS LUCRATIVE BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL UTILITIES CLAIM THAT LAWSUITS OVER EXPOSURE TO ELECTROMAGNETIC FIELDS ARE BASELESS BUT FOR LAW FIRMS THAT REPRESENT THE POWER COMPANIES SUCH CASES ARE BECOMING BIG BUSINESS A LEGAL AND SCIENTIFIC TEAM SPECIALIZING IN SOCALLED EMF LITIGATION HAS JOINED LEBOEUF LAMB LEIBY & MACRAE ONE OF THE NATION'S BESTKNOWN LAW FIRMS REPRESENTING UTILITY COMPANIES THE NEW YORK LAW FIRM'S ENTRY REFLECTS HOW COMPETITIVE THE FIELD HAS BECOME FOR THE DEFENSE BAR LEBOEUF'S NEW GROUP WAS BUILT LARGELY BY RAIDING WASHINGTON LAW FIRM CROWELL & MORING WHICH HAS BUILT UP A SUBSTANTIAL EMF PRACTICE IN RECENT YEARS THE UTILITY INDUSTRY HAS PLAYED DOWN HEALTH CONCERNS ABOUT EXPOSURE TO EMF AS SCIENTIFICALLY UNFOUNDED BUT THE LAWSUITS KEEP COMING MORE THAN A HUNDRED LAWSUITS AND REGULATORY DISPUTES INVOLVING EMF COMPLAINTS HAVE BEEN FILED NATIONWIDE MAINLY OVER EXPOSURE TO UTILITY TRANSMISSION LINES THE CASES RANGE FROM WORKERS' COMPENSATION CLAIMS BROUGHT BY POWERCOMPANY EMPLOYEES TO PERSONALINJURY SUITS BROUGHT BY PEOPLE LIVING NEAR POWER LINES IT IS STILL AN AREA THAT UTILITIES FEEL THEY NEED TO PAY SPECIAL ATTENTION TO SAID TOM WATSON A PARTNER AT CROWELL & MORING WHO SPECIALIZES IN EMF CASES AND REPRESENTS UTILITIES IN THE US AND ABROAD UTILITIES ARE TAKING THIS VERY VERY SERIOUSLY SAID SEATTLE LAWYER MICHAEL WITHEY WHO HAS COORDINATED PLAINTIFF ATTORNEYS' EFFORTS IN BRINGING EMF CASES SEVERAL POPULATION STUDIES HAVE FOUND THAT THERE MAY BE A LINK BETWEEN EMF EXPOSURE AND CANCER BUT NONE OF THE STUDIES HAS BEEN CONCLUSIVE IN A CLOSELY WATCHED CASE EARLIER THIS YEAR A JURY IN SAN DIEGO REJECTED A COUPLE'S CLAIM THAT POWER LINES OVER THEIR HOME CAUSED THEIR YOUNG DAUGHTER TO DEVELOP KIDNEY TUMORS IT WAS THE FIRST TIME A JURY HAD DECIDED AN EMF PERSONALINJURY CASE TO SET UP ITS EMF GROUP THE 470LAWYER LEBOEUF RECRUITED HB GRAVES A SCIENTIST WHO HAS WRITTEN EMF STUDIES CITED BY THE INDUSTRY AND WHO WORKED FOR CROWELL & MORING FOR SIX YEARS DR GRAVES AND ATTORNEY MARK A WARNQUIST WILL HEAD LEBOEUF'S NEW EMF PRACTICE WHICH WILL WORK CLOSELY WITH THE FIRM'S UTILITY AND ENVIRONMENTAL GROUPS MR WARNQUIST AN ASSOCIATE AT CROWELL & MORING UNTIL 1992 BECAME OFCOUNSEL IN LEBOEUF'S DENVER OFFICE SEVERAL MONTHS AGO ANOTHER FORMER CROWELL & MORING ASSOCIATE C ROBERT MANOR JOINED THE NEW EMF GROUP AS SPECIAL COUNSEL ADDING A GROUP OF EMF SPECIALISTS SHOULD GIVE US A GREAT DEAL OF FIRE POWER SAID DONALD J GREEN LEBOEUF'S CHAIRMAN MR WATSON SAID THAT THE DEPARTURES FROM CROWELL & MORING WON'T HURT THAT LAW FIRM'S FIVELAWYER EMF PRACTICE AND THAT NO CLIENTS WILL BE LEAVING THE FIRM HE SAID CROWELL & MORING LAST MONTH ADDED A PHYSICIAN WHO ALSO IS AN ATTORNEY TO ITS EMF GROUP HE SAID THE DOCTOR WILL HELP EVALUATE THE MEDICAL SIGNIFICANCE OF EMF RESEARCH A PHILADELPHIA TRIAL JUDGE UPHELD A 34 MILLION LIBEL AWARD AGAINST THE PHILADELPHIA INQUIRER IN A 170PAGE RULING COMMON PLEAS COURT JUDGE CHARLES P MIRARCHI JR SAID THAT THE 1990 JURY VERDICT ONE OF THE LARGEST IN HISTORY WAS JUSTIFIED BECAUSE THE NEWSPAPER HAD SEVERELY DAMAGED THE REPUTATION OF ATTORNEY RICHARD A SPRAGUE THE INQUIRER PART OF THE KNIGHTRIDDER INC CHAIN SUGGESTED IN A 1973 SERIES THAT MR SPRAGUE WHILE A PROSECUTOR HAD QUASHED AN INVESTIGATION AS A FAVOR FOR A FRIEND THE PRIMARY AUTHOR OF THE SERIES GREG WALTER WHO'S DECEASED PREVIOUSLY WAS SUCCESSFULLY PROSECUTED BY MR SPRAGUE FOR ILLEGAL WIRETAPPING AND WAS KNOWN BY FRIENDS TO HOLD A GRUDGE AGAINST HIM THE JUDGE SAID MR SPRAGUE WAS FORCED INTO PRIVATE PRACTICE AS A RESULT OF FALSE ARTICLES THE INQUIRER'S EDITOR MAXWELL EP KING SAID IN A STATEMENT THAT HE BELIEVES THE VERDICT WILL BE SET ASIDE ON APPEAL SEVEN SUPREME COURT JUSTICES FOR THE FIRST TIME SPELLED OUT PUBLICLY WHEN THEY WILL REMOVE THEMSELVES FROM CASES THE RECUSAL POLICY WILL APPLY WHEN SPOUSES OF JUSTICES CHILDREN OR OTHER RELATIVES ARE MEMBERS OF LAW FIRMS INVOLVED IN CASES BEFORE THE HIGH COURT THE MAJORITY OF THE COURT ISSUED THE POLICY BECAUSE AN INCREASING NUMBER OF THE JUSTICES HAVE RELATIVES WHO PRACTICE LAW JUSTICE RUTH BADER GINSBURG'S HUSBAND MARTIN FOR EXAMPLE IS A PROMINENT TAX LAWYER PREVIOUSLY THE JUSTICES MADE RECUSAL DECISIONS ON A CASEBYCASE BASIS AND OFTEN DIDN'T EXPLAIN THEIR REASONS JUSTICES HARRY BLACKMUN AND DAVID SOUTER DIDN'T SIGN THE POLICY JUSTICE BLACKMUN SAID THROUGH A COURT SPOKESWOMAN THAT HE DOESN'T HAVE ANY RELATIVES WHOSE LAW PRACTICE WOULD RAISE SUCH QUESTIONS JUSTICE SOUTER DECLINED TO COMMENT ON RECUSAL AS HAS BEEN HIS PRACTICE THE OTHER JUSTICES AGREED TO A VARIETY OF RULES BEYOND THE WELLESTABLISHED PRACTICE OF DISQUALIFYING THEMSELVES FROM A CASE IF A RELATIVE IS PARTICIPATING IN THE PROCEEDING BEFORE THE HIGH COURT THEY SAID FOR EXAMPLE THAT THEY WOULD REMOVE THEMSELVES FROM A CASE IF A RELATIVE HAD SERVED AS LEAD COUNSEL IN THE LOWERCOURT LITIGATION ANOTHER FACTOR REQUIRING RECUSAL WOULD BE THAT A RELATIVE'S PAY WOULD BE SUBSTANTIALLY AFFECTED BY THE HIGH COURT'S RULING MORE BROADLYTHE POLICY STATES THAT THE JUSTICES WILL TYPICALLY RECUSE THEMSELVES FROM CASES IN WHICH A PARTY IS REPRESENTED BY A FIRM IN WHICH RELATIVES ARE PARTNERS THE SEVEN JUSTICES SAID THAT THEY WOULDN'T RECUSE THEMSELVES IF A RELATIVE HAD PLAYED A SECONDARY ROLE IN AN EARLIER STAGE OF A CASE NEW YORK PROSECUTORS ASKED A STATE COURT TO DROP BCCIRELATED CHARGES AGAINST 86YEAROLD CLARK CLIFFORD WHOSE FORMER LAW PARTNER AND PROTEGE ROBERT ALTMAN WAS ACQUITTED IN AUGUST IN A SIMILAR CASE THE PROSECUTORS' MOTION HAD BEEN EXPECTED IN THE WAKE OF THE ALTMAN VERDICT MR CLIFFORD HAD BEEN SLATED TO STAND TRIAL WITH MR ALTMAN ON CHARGES OF FRAUD AND BRIBERY BUT WAS SEPARATED FROM THE TRIAL BECAUSE OF HIS HEART CONDITION THE TWO MEN WERE ACCUSED OF HELPING THE SCANDALRIDDEN BANK OF CREDIT & COMMERCE INTERNATIONAL SECRETLY GAIN CONTROL OF FIRST AMERICAN BANKSHARES INC OF WASHINGTON DC MESSRS CLIFFORD AND ALTMAN WERE THE TOP OFFICERS OF FIRST AMERICAN AT THE TIME BUT THEY MAINTAINED THEY WERE UNAWARE OF THE ROLE PLAYED BY THE UNIT OF BCCI HOLDINGS LUXEMBOURG SA CHARLES STILLMAN AN ATTORNEY FOR MR CLIFFORD TWO WEEKS AGO ASKED JUDGE JOHN AK BRADLEY TO DISMISS THE CHARGES BECAUSE OF MR CLIFFORD'S POOR HEALTH AND BECAUSE OF THE VERDICT IN THE ALTMAN CASE MR STILLMAN SAID THE PROSECUTORS' MOTION FOR DISMISSAL CITED ONLY MR CLIFFORD'S HEALTH PROBLEMS JUDGE BRADLEY HAS SCHEDULED A HEARING ON THE REQUEST NOV 29 A SPOKESMAN FOR THE NEW YORK DISTRICT ATTORNEY'S OFFICE COULDN'T BE REACHED FOR COMMENT MESSRS CLIFFORD AND ALTMAN ALSO HAD BEEN CHARGED IN WASHINGTON IN A NARROWER FEDERAL CASE STEMMING FROM THE BCCI ALLEGATIONS THOSE CHARGES PREVIOUSLY WERE WITHDRAWN AND AREN'T EXPECTED TO BE REVIVED PAUL M BARRETT CONTRIBUTED TO THIS ARTICLE 9311020095 931102 US SEEKS TO FORCE BRANIFF FIGURE OUT OF AIRLINE INDUSTRY OVER ALLEGED SCAM BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TRANSPORTATION DEPARTMENT LAWYERS ARE MOVING TO BAR SCOT SPENCER WHO WAS WIDELY BLAMED FOR THE COLLAPSE OF BRANIFF AIRLINES FROM THE AIRLINE INDUSTRY FOR HIS POSSIBLE ROLE IN AN ALLEGED CHARTERAIRLINE SCAM THE 28YEAROLD MR SPENCER WHO HAS HAD A STRING OF MISSTEPS IN THE INDUSTRY AND WITH THE LAW WILL FACE A HEARING BEFORE AN ADMINISTRATIVELAW JUDGE ON CHARGES THAT HE ILLEGALLY DIVERTED HUNDREDS OF THOUSANDS OF DOLLARS OF CUSTOMER FUNDS WHILE RUNNING A CHARTER OPERATOR REPUBLIC AIR TRAVEL OF IRVING TEXAS THE TRANSPORTATION DEPARTMENT ENFORCEMENT DIVISION ALSO CHARGED TWO OTHER COMPANIES WITH VARIOUS VIOLATIONS AIRLIFT GROUP INC OF MIAMI WHICH SET UP AND RAN THE CHARTER PROGRAM AND EXPRESS ONE INTERNATIONAL WHICH RUNS THE FLIGHTS THE AGENCY STAFF SAYS THAT REPUBLIC EITHER WITH AIRLIFT OR WORKING ALONE MOVED HUNDREDS OF THOUSANDS OF DOLLARS PAID BY CUSTOMERS OUT OF ESCROW ACCOUNTS AND INSTEAD USED THE MONEY TO PAY FOR ADVERTISING SALARIES AND LEGAL FEES AIRLIFT IS CHARGED WITH PARTICIPATING IN THE SCHEME OR ALLOWING REPUBLIC AS ITS AGENT TO PAY ITS EXPENSES EXPRESS ONE IS CHARGED WITH BREACHING RESPONSIBILITY TO ENSURE THAT FEDERAL CHARTER RULES ARE FOLLOWED IN ADDITION TO AN EJECTION OF MR SPENCER FROM THE AIRLINE INDUSTRY THE TRANSPORTATION DEPARTMENT ENFORCEMENT STAFF IS SEEKING 1 MILLION IN FINES AND AN ORDER BARRING OTHER KEY OFFICIALS OF REPUBLIC AND AIRLIFT FROM THE AIRLINE INDUSTRY MR SPENCER AND THE THREE COMPANIES COULDN'T BE REACHED TO COMMENT YESTERDAY MR SPENCER HAS HAD A CHECKERED CAREER MOST NOTABLY WITH BRANIFF WHICH CLOSED DOWN IN 1989 WHILE HE NEVER HELD AN OFFICIAL TITLE AIRLINE EXECUTIVES THERE SAID HE DIRECTED JETFINANCING DECISIONS AND OTHER STRATEGIC MOVES THOSE STEPS THE EXECUTIVES CONTENDED LED IN 1989 TO BRANIFF'S SECOND BANKRUPTCYLAW FILING IN SEVEN YEARS MR SPENCER WAS THE SUBJECT OF A WALL STREET JOURNAL FRONTPAGE ARTICLE SHORTLY AFTER THE CARRIER'S FILING FOR BANKRUPTCY PROTECTION AT THE TIME MR SPENCER SAID HE WAS A SCAPEGOAT FOR THE AIRLINE'S DEMISE AT THE TIME OF BRANIFF'S COLLAPSE LAWENFORCEMENT RECORDS SHOWED THAT MR SPENCER HAD BEEN ARRESTED AT LEAST FOUR TIMES ON CHARGES RANGING FROM ATTEMPTED GRAND LARCENY TO THEFT BY DECEPTION IN THREE OF THE CASES HE PLEADED GUILTY OR NOCONTEST TO MISDEMEANORS CHARGES WERE DISMISSED IN THE FOURTH IN THE LATEST CHARGES TRANSPORTATION DEPARTMENT OFFICIALS SAID MR SPENCER'S COMPANY TOOK MONEY FROM CUSTOMERS FOR CHARTER FLIGHTS WITHOUT PLACING THEM IN A SEPARATE ESCROW ACCOUNT AS REQUIRED BY FEDERAL LAW THE COMPANY THEN ALLEGEDLY USED THE FUNDS FOR OPERATING EXPENSES MR SPENCER ALSO ALLEGEDLY CANCELED SOME OF THE TRIPS WITHOUT PROMPTLY RETURNING MONEY TO CUSTOMERS AND ALLEGEDLY FAILED TO PROPERLY NOTIFY CONSUMERS OF CANCELLATIONS REPUBLIC WHICH FLIES SEVERAL FLIGHTS DAILY OUT OF NEW YORK AND SERVES LOS ANGELES DALLAS BALTIMOREWASHINGTON AND SOUTH FLORIDA HAS SOLD TICKETS TO THOUSANDS OF CONSUMERS COLLECTING MILLIONS OF DOLLARS SINCE IT STARTED UP IN MAY THE AGENCY SAID IT RECENTLY BEGAN RUNNING ADVERTISEMENTS FOR SERVICE TO THE CARIBBEAN ISLANDS 9311020094 931102 BOARD OF CONTRIBUTORS FED INDEPENDENCE ISN'T ENOUGH BY HERBERT STEIN WE ARE NOW BEING TREATED TO ANOTHER EPISODE IN ONE OF CAPITOL HILL'S LONGRUNNING SOAP OPERAS IT IS THE ONE IN WHICH THE LEWD LECHEROUS CONGRESS THREATENS TO DEFILE THE VIRGINAL VIRTUOUS FEDERAL RESERVE FOR THOSE WHO ARE NOT FOLLOWING THIS PARTICULAR STORY I CAN OFFER ASSURANCE THAT THE FED WILL ESCAPE AND REMAIN THE STILL UNRAVISH'D BRIDE OF LOVELINESS THE FED WILL ESCAPE BECAUSE IN THE END FEW CONGRESSMEN WANT TO TAKE ON THE RESPONSIBILITY FOR THE PERFORMANCE OF THE ECONOMY THAT WOULD GO WITH EXERTING CONTROL OVER THE FEDERAL RESERVE THEY ENJOY THE FREEDOM TO CRITICIZE AND TO POSTURE AS DEFENDERS OF THE PUBLIC AGAINST THE MONEY POWER BUT THEY DO NOT WANT THE BURDEN OF RUNNING MONETARY POLICY MANY ARE MYSTIFIED BY WHAT GOES ON IN THE FED'S MARBLE PALACE ON CONSTITUTION AVENUE AND DON'T WANT TO ENTER FOR FEAR OF TOUCHING THE WRONG BUTTON ON THE MONEY MACHINE AND MAKING THE ECONOMY EXPLODE SO THE CONGRESSIONAL APPROACH TO THE FED TURNS OUT TO BE NOT ATTEMPTED RAPE TO CONTINUE THE METAPHOR ONE SENTENCE LONGER BUT LOWLEVEL HARASSMENT IT FOCUSES ON TRIVIAL OR AT MOST SECONDARY ISSUES SUCH AS WHO SHOULD APPOINT THE PRESIDENT OF THE FEDERAL RESERVE BANKS HOW QUICKLY AND IN WHAT DETAIL THE OPEN MARKET COMMITTEE SHOULD PUBLISH ITS MINUTES AND THE PROPORTIONS OF WOMEN AND MINORITIES IN THE FED HIERARCHY AND THIS FOCUS SERVES THE PURPOSE OF BOTH THE FED AND CONGRESS BECAUSE IT DIVERTS ATTENTION FROM THE HEART OF THE MATTER THE BASIC QUESTIONS ARE THESE THESE QUESTIONS MAY BE MADE CONCRETE WITH REFERENCE TO INFLATION AND THE CASE FOR THE INDEPENDENCE OF THE FED IS USUALLY MADE WITH REFERENCE TO INFLATION THE ARGUMENT IS PUT AS A CHOICE BETWEEN SIX POLITICAL BOSSES MEETING IN A ROOM BEHIND MCCORLEY'S SALOON WHO WILL CHOOSE INFLATION IN ORDER TO WIN THE NEXT ELECTION AND 12 INDEPENDENT FED OFFICIALS WHO WILL STAND ROCKLIKE FOR PRICE STABILITY BUT THIS IS OF COURSE A CARICATURE ON BOTH SIDES IF CONGRESS COULD BE BROUGHT TO VOTE ON AN EXPLICIT TARGET FOR THE PRICE LEVEL IT WOULD CERTAINLY NOT VOTE FOR ESCALATING INFLATION OR EVEN FOR THE AVERAGE RATE OF INFLATION WE HAVE HAD IN THE PAST 30 YEARS AND IT IS HARD TO READ THE HISTORY OF THE PAST 30 YEARS WITHOUT SEEING THE FED AS HAVING COLLABORATED IN THAT INFLATION THE FACT IS THAT THE POLITICIANS BEHAVE IN AN INFLATIONARY WAY AS LONG AS THEY ARE ABLE TO ESCAPE RESPONSIBILITY FOR IT AND THE FED IN SOME PERIODS BUT NOT ALWAYS HAS BEEN ABLE TO FOLLOW INFLATIONARY POLICY AS LONG AS IT COULD HIDE BEHIND PRICESTABILITY RHETORIC AND NO ONE COULD CALL IT TO ACCOUNT THE FEDERAL RESERVE DESERVES MAJOR CREDIT FOR THE APPROACH TOWARD PRICE STABILITY THAT HAS BEEN ACHIEVED IN THE PAST 14 YEARS BUT THE LONGER RECORD DOES NOT SUGGEST THAT THE INDEPENDENCE OF THE FED IS A SUFFICIENT BULWARK AGAINST INFLATION TO TALK ABOUT INFLATION NOW AFTER A MONTH WHEN THE CONSUMER PRICE INDEX DID NOT RISE AT ALL MAY SEEM ARCHAIC BUT NOW WHEN WE FACE NO CRISIS IS A GOOD TIME TO TALK ABOUT INFLATION AND THE CONNECTIONS AMONG IT THE FED AND CONGRESS WE HAVE NO NATIONAL POLICY ABOUT THE PRICE LEVEL TODAY OR IF WE DO NO ONE KNOWS WHAT IT IS THE FED TALKS CONTINUOUSLY ABOUT PROCEEDING WITH THE DISINFLATIONARY PROCESS AND SOMETIMES HINTS AT A GOAL OF A 2 INFLATION RATE BUT IT SHOWS NO DETERMINATION TO GET THERE THE ADMINISTRATION BASES ITS BUDGET PLANS ON THE ASSUMPTION OF A 35 RATE FOR THE NEXT FIVE YEARS AND SHOWS NO WORRY ABOUT THE CONTINUATION OF SUCH A RATE WHAT THE FINANCIAL MARKETS ARE EXPECTING IS A MYSTERY TO ME BUT IT MAY WELL BE MORE THAN 35 AND WE CAN EASILY VISUALIZE A SITUATION IN WHICH A NEW CAST OF OFFICIALS WHO WERE NOT MUCH ENGAGED DURING THE INFLATION TRAUMA OF THE 1960S AND 1970S WILL REGARD 35 INFLATION AS ESSENTIALLY ZERO AND WILL BE PREPARED TO LIVE WITH MORE THAN THAT THIS IS NOT A GOOD STATE OF AFFAIRS SOMEONE IS BOUND TO BE DISAPPOINTED AND HURT IT WOULD BE GOOD TO HAVE A NATIONALLY AGREEDUPON GOAL FOR THE PRICE LEVEL THAT WILL REQUIRE CONGRESSIONAL INVOLVEMENT IN FACT CONGRESSIONAL INVOLVEMENT CANNOT BE AVOIDED CONGRESS HAS THE ULTIMATE POWER AS THINGS NOW STAND CONGRESS IS A CONSTANT THREAT LOOKING OVER THE FED'S SHOULDER AND NEVER HAVING TO SAY EXPLICITLY WHAT IT WANTS THE FED HAS TO GUESS HOW IT MUST BEHAVE IF IT IS TO PRESERVE ITS INDEPENDENCE IT WOULD BE BETTER IF CONGRESS TOOK MORE RESPONSIBILITY AND PARTICIPATED EXPLICITLY IN SETTING GUIDELINES IN 1978 WITH THE HUMPHREYHAWKINS ACT WE SEEMED TO HAVE REACHED A REASONABLE COMPROMISE BETWEEN THE NEED FOR CONGRESSIONAL RESPONSIBILITY AND THE NEED FOR FED INDEPENDENCE THE FEDERAL RESERVE WOULD REPORT EVERY SIX MONTHS TO THE RELEVANT CONGRESSIONAL COMMITTEES SETTING FORTH ITS FORECASTS FOR THE MAIN ECONOMIC AGGREGATES AND ITS TARGETS FOR THE GROWTH OF THE MONEY SUPPLY THE COMMITTEES COULD REVIEW THESE PLANS AND REPORT THEIR APPROVAL OR DISAPPROVAL PRESUMABLY THE TARGETS IF APPROVED WOULD BE THE GUIDES FOR THE FED'S POLICY THE FORECASTS OF INFLATION OUTPUT AND EMPLOYMENT COULD BE ASSUMED TO REPRESENT THE FED'S GOALS FOR THOSE VARIABLES OTHERWISE THEY WOULD HAVE PROPOSED DIFFERENT BEHAVIOR OF THE MONEY SUPPLY TO REACH DIFFERENT ECONOMIC RESULTS THIS SYSTEM HAS NEVER WORKED AS CONGRESS SEEMS TO HAVE INTENDED THE FED ALWAYS SET TARGETS FOR AT LEAST THREE MEASURES OF THE MONEY SUPPLY WITH WIDE RANGES SPECIFIED FOR EACH SO THAT AT LEAST ONE OF THE MEASURES WAS EXTREMELY LIKELY TO FALL WITHIN ITS TARGET RANGE BUT EVEN IF NONE OF THE TARGETS WERE MET THE FED WAS NOT HELD TO ACCOUNT THE TARGETS AND THE FORECASTS RELATED ONLY TO A SHORT PERIOD USUALLY FOR A YEAR AHEAD SO THAT DEVIATIONS COULD ALWAYS BE ASCRIBED TO TRANSITORY FACTORS AND NOW WE ARE TOLD THAT THE MONEY SUPPLY FIGURES ARE OF NO RELEVANCE OR OF UNKNOWABLE RELEVANCE ANYWAY WHEN THE FED CHAIRMAN APPEARS BEFORE CONGRESSIONAL COMMITTEES HE IS LIKELY TO BE THE SUBJECT OF A CONSIDERABLE AMOUNT OF HECKLING WHICH ROLLS OFF HIS BACK BECAUSE HE OBVIOUSLY KNOWS SO MUCH MORE ABOUT THE SUBJECT THAN ANY OF THE CONGRESSMEN AND THE COMMITTEES WILL NEVER ISSUE ANY REPORT INDICATING THAT POLICY SHOULD BE CHANGED IN ANY PARTICULAR WAY FOR THE CONGRESSIONAL COMMITTEES TO TURN NOW FROM MINOR MATTERS OF PERSONNEL AND PROCEDURE TO THE QUESTION OF MONETARY POLICY WOULD BE INTERESTING AND MIGHT BE HELPFUL THEY COULD ASK THE FED TO DESCRIBE ITS TARGETS FOR THE PRICE LEVEL FOR THE NEXT SAY FIVE YEARS AND THE POLICIES BY WHICH IT PROPOSED TO ACHIEVE THOSE TARGETS JUST POSSIBLY THE COMMITTEES MIGHT HAVE A SERIOUS DISCUSSION OF THE DESIRABILITY OF THE TARGETS AND THE EFFECTIVENESS OF THE PROPOSED POLICIES FROM THIS MIGHT EMERGE AN AGREEMENT ON GOALS THAT WOULD SERVE AS A RESTRAINT ON INFLATIONARY POLICY IN THE FUTURE AND AS THE BASIS FOR CONSISTENT AND RELIABLE EXPECTATIONS BY DECISION MAKERS IN THE PRIVATE SECTOR AND IN THE GOVERNMENT OUR EXPERIENCE DOES NOT JUSTIFY MUCH HOPE THAT EITHER THE FED OR CONGRESS WILL BE WILLING TO COMMIT ITSELF TO ANY SPECIFIC RATE OF INFLATION AND TO ACCEPT THE RESPONSIBILITIES THAT WOULD RESULT FROM DOING SO BUT IF THERE IS EVEN A LITTLE HOPE IT IS WORTH TALKING ABOUT A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS MR STEIN IS AN AMERICAN ENTERPRISE INSTITUTE FELLOW