YIELDS ON MEXICAN TREASURY BILLS TUMBLE LOWER STILL AND THE FREETRADE AGREEMENT LOOKS AT BEST UNCERTAIN BUT FOR NEARLY A YEAR THE MEXICAN PESO HAS REMAINED ROCK SOLID THAT TROUBLES SOME INTERNATIONAL INVESTORS WHO ARE BACKING AWAY FROM THE MEXICAN CURRENCY BECAUSE THEY FEAR THE POSSIBILITY OF A STEEP DEPRECIATION DURING THE PAST TWO MONTHS FOR EXAMPLE MUTUALFUND GIANT FIDELITY MANAGEMENT & RESEARCH HAS SHED ABOUT 1 BILLION IN MEXICO'S PESODENOMINATED TREASURY BILLS KNOWN AS CETES WE HAVE LIGHTENED UP OUR PESO EXPOSURE SAYS LINCOLN ANDERSON DIRECTOR OF GLOBAL RESEARCH AT FIDELITY HE SAYS THE CASH FROM FIDELITY'S MATURING CETES HAS BEEN ROLLED INTO DOLLARDENOMINATED MEXICAN BRADY BONDS THESE ARE COMMERCIALBANK LOANS TO THE MEXICAN GOVERNMENT THAT HAVE BEEN REPACKAGED AS BONDS FOR MOST OF 1993 HUGE INTERNATIONAL DEMAND FOR MEXICAN STOCKS AND HIGHYIELDING CETES HAS KEPT THE PESO REMARKABLY STABLE AROUND ITS CURRENT LEVEL OF 312 PESOS PER DOLLAR FOREIGN INVESTORS OWN 55 BILLION IN PESO SECURITIES TODAY THE PESO HASN'T EVEN COME CLOSE TO TESTING THE GOVERNMENT'S CRAWLING DEVALUATION LIMIT OF 004 CENTAVOS A DAY WHAT HAS RESULTED IS A KIND OF PESO BUBBLE A CURRENCY THAT MAY BE OVERVALUED BECAUSE OF STRONG FOREIGN INFLOWS OF MONEY INTERNATIONAL INVESTORS ARE CONCERNED THAT THE BUBBLE COULD POP SENDING THE PESO DOWN 57 TO 330 PESOS PER DOLLAR THE CENTRAL BANK'S INTERVENTION RATE IF THE PESO FAILED TO RECOVER THE DECLINE WOULD NEARLY HALVE THE DOLLAR RETURNS IN ONEYEAR MEXICAN TREASURY BILLS AT CURRENT YIELDS OF 1257 INVESTORS HAVE LOST MUCH OF THEIR CUSHION OF COMFORT IN ONEYEAR CETES WHICH HAD YIELDS OF 19 IN JANUARY FOREIGN INVESTORS IN MEXICAN STOCKS WOULD ALSO GET HURT IF THE PESO SLIPPED A US INVESTOR HOLDING DOLLARDENOMINATED AMERICAN DEPOSITARY SHARES OF TELEFONOS DE MEXICO WOULD HAVE LOSSES BECAUSE EACH ADS REPRESENTS 20 SERIES L PESODENOMINATED SHARES SAYS A MEXICAN FINANCE OFFICIAL WHO DECLINED TO BE IDENTIFIED THE PESO IS FREE TO TRADE WITHIN THE BAND IT CAN GO NEAR THE FLOOR OR TO THE CEILING THAT IS WITHIN THE RULES OF THE GAME THAT'S WHAT WORRIES ASHWIN VASAN WHO MANAGES GLOBALBOND PORTFOLIOS AT OPPENHEIMER MANAGEMENT CORP NEW YORK FOR THE FIRST TIME IN RECENT MEMORY AN INVESTMENT AT CURRENT YIELDS IN CETES WHICH HAVE NO PRACTICAL FACILITY TO HEDGE WILL PRODUCE SINGLEDIGIT DOLLAR RETURNS IF THE CURRENCY DECLINES BY JUST 3 HE SAYS FOR US THAT'S NOT GOOD ENOUGH FOR AN EMERGINGMARKET RISK PESO EXPOSURE IN OPPENHEIMER MANAGEMENT'S 36 BILLION STRATEGIC INCOME FUND HAS BEEN CUT TO AROUND 2 OF TOTAL ASSETS FROM AROUND 7 IN AUGUST THE PESO'S IMMEDIATE FUTURE DEPENDS ON THE NORTH AMERICAN FREE TRADE AGREEMENT VOTE WHICH IS EXPECTED BEFORE CONGRESS'S THANKSGIVING RECESS IF NAFTA IS APPROVED TRADERS PREDICT A HUGE FLOW OF MONEY INTO MEXICAN SECURITIES WHICH WOULD UNDERPIN THE PESO FOR SOME TIME TOO MUCH MONEY WILL WANT TO GET IN IF NAFTA IS APPROVED AND THERE AREN'T ENOUGH INVESTMENT INSTRUMENTS TO BUY SO THE PESO WILL HAVE STRONG SUPPORT AT LEAST UNTIL JUNE PREDICTS JOHN LIEGEY PRESIDENT OF WESTON GROUP A NEW YORK MERCHANT BANK THE CENTRAL BANK WOULD ALLOW THE PESO TO RISE TO 305 PESOS PER DOLLAR OR 23 FROM CURRENT LEVELS BEFORE INTERVENING BUT MR LIEGEY ADDS THERE IS NO DOUBT THAT THE FOREIGN INVESTOR GETS MORE CONCERNED AT THESE RELATIVELY LOW LEVELS OF MEXICAN INTEREST RATES IF NAFTA FAILS OR IS DELAYED MANY INVESTORS SAY THE PESO COULD FALL NEARLY 57 TO THE OUTER LIMIT OF THE CENTRAL BANK'S INTERVENTION BAND AT THAT POINT BANCO DE MEXICO THE CENTRAL BANK WOULD BE EXPECTED TO VIGOROUSLY DEFEND THE CURRENCY ITS FIREPOWER INCLUDES MORE THAN 20 BILLION IN FOREIGN RESERVES ON FRIDAY THE PESO FELL A BIT ONE REASON TRADERS SAID WAS SELLING BY LARGE MEXICAN BANKS THAT ARE TRYING TO REIN IN LARGE BETS MADE ON AN UNCHANGING PESODOLLAR RELATIONSHIP ONE MEXICAN BANKER ESTIMATES THAT A 4 TO 5 DECLINE IN THE PESO COULD HIT THE MEXICAN BANKING SYSTEM WITH AS MUCH AS 12 BILLION IN LOSSES EVEN IF NAFTA IS APPROVED THE CURRENCY COULD SLIDE AFTER THE EUPHORIA DIES DOWN SOME INVESTORS THINK TO ME THERE IS A REALISTIC CHANCE THAT THE PESO COULD HEAD LOWER EVEN AFTER NAFTA'S APPROVAL AS A PRACTICAL MATTER I AM LOOKING FOR A 2 TO 3 DECLINE SAYS WAYNE LYSKI EXECUTIVE VICE PRESIDENT AT ALLIANCE CAPITAL MANAGEMENT THAT'S BECAUSE HUGE INFLOWS OF MONEY WILL RESULT IN LOWER INTEREST RATES MAKING CETES LESS ATTRACTIVE TO FOREIGN INVESTORS EVEN SO RETURNS IN THE HIGH SINGLE DIGITS ARE GOOD ENOUGH FOR ALLIANCE WHICH HAS INVESTED ABOUT 10 OF TOTAL INTERNATIONAL MONEY MARKET PORTFOLIO ASSETS IN PESO SECURITIES MANY INVESTORS AND SOME ECONOMISTS SAY THE WEAK MEXICAN ECONOMY WARRANTS A WEAKER PESO NO MATTER WHAT MR VASAN OF OPPENHEIMER PREDICTS THE PESO FALLS IF NAFTA GOES THROUGH OR IF IT DOESN'T IF THERE IS NO NAFTA THE RISK IS THAT IT DEVALUES BEYOND THE INTERVENTION BAND RUDIGER DORNBUSCH A MASSACHUSETTS INSTITUTE OF TECHNOLOGY ECONOMICS PROFESSOR AND CURRENCY EXPERT SAYS THE ANSWER TO MEXICO'S ECONOMIC GROWTH PROBLEM IF NAFTA FAILS IS TO GET THE CURRENCY DOWN HE MADE THE REMARK LAST WEEK AT THE WALL STREET JOURNAL'S SECOND ANNUAL CONFERENCE ON THE AMERICAS ECONOMISTS BELIEVE EXCHANGE RATES MUST COMPENSATE FOR DIFFERENT INFLATION RATES AMONG TRADING PARTNERS MORE THAN HALF OF MEXICO'S TRADE IS WITH THE US BUT THE COUNTRY'S INFLATION IS AROUND 9 COMPARED WITH US INFLATION OF AROUND 3 TODAY A MEXICAN PESO BUYS ABOUT THE SAME AMOUNT OF DOLLARS AS IT DID AT THE YEAR'S START BUT BECAUSE PRICES HAVE RISEN MORE IN MEXICO A MEXICAN SHOPPER SHOULD BE MORE INCLINED TO BUY CHEAPER US EXPORTS RATHER THAN MEXICAN GOODS THIS ECONOMIC THEORY KNOWN AS PURCHASING POWER PARITY COULD EXPLAIN WHY MEXICO IS EXPECTED TO HAVE A CURRENTACCOUNT DEFICIT OF ABOUT 22 BILLION THIS YEAR THE INFLATIONADJUSTED EXCHANGE RATE HAS BEEN APPRECIATING STEADILY SINCE 1988 THAT HAS RESULTED IN A LOSS OF COMPETITIVENESS WHICH IS PARTIALLY REFLECTED IN THE TRADE DATA SAYS MARILYN SKILES ECONOMIST AT JP MORGAN & CO IN 1992 FOR EXAMPLE MEXICO'S CURRENT ACCOUNT DEFICIT BALLOONED TO 228 BILLION FROM 1991'S DEFICIT OF 133 BILLION BUT BIG INFLOWS OF MONEY SUCH AS ARE OCCURRING IN MEXICO'S SECURITIES MARKETS TODAY CAN OVERRIDE ECONOMIC LAW THE PESO MAY BE OVERVALUED BUT THAT DOESN'T MEAN IT WILL FALL AS LONG AS US AND OTHER FOREIGN INVESTORS CONTINUE TO PLOW MONEY INTO MEXICAN STOCKS BONDS AND OTHER PESO INVESTMENTS SIMON NOCERA AN ECONOMIST AND PORTFOLIO MANAGER AT GT CAPITAL MANAGEMENT IN SAN FRANCISCO SAYS THE PESO'S VALUE IS CORRECT AND REFLECTS A REALITY ECONOMISTS DON'T GRASP YET HE SAYS MUCH OF MEXICO'S TRADE DEFICIT REPRESENTS IMPORTS OF TECHNOLOGY AND OTHER GOODS THAT WILL RAISE PRODUCTIVITY AND CONSEQUENTLY LOWER PRICES OF GOODS AND SERVICES IN MEXICO MEXICO'S INFLATION WILL FALL TO 5 NEXT YEAR MR NOCERA PREDICTS THAT WOULD BUILD CONFIDENCE IN THE PESO AND VALIDATE ITS LEVEL AS THE PRICE OF MEXICAN GOODS BECOME MORE COMPETITIVE WHAT'S MORE HE BELIEVES THE PESO IS THE YARDSTICK OF ECONOMIC CREDIBILITY THAT THE MEXICAN GOVERNMENT WILL DEFEND IF NAFTA FAILS THEY HAVE A HUGE POLITICAL DISADVANTAGE TO LET THE PESO FALL HE SAYS WILL THEY STAND READY TO DEFEND IT DEFINITELY NO QUESTION IN MY MIND GT CAPITAL HAS PESO INVESTMENTS AS HIGH AS 18 OF ASSETS TOTALING 780 MILLION IN GLOBALBOND FUNDS I HAVE INCREASED MY PESO POSITION IN THE PAST TWO MONTHS MR NOCERA SAYS 9311020090 931102 ENTERPRISE MILITARY PARTS TO MOUSSE A PRODUCT TESTER SHIFTS GEARS BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL BOHEMIA NY FOR A BUSINESS THAT TESTS WHETHER A CAN OF HAIR MOUSSE EXPLODES IN A SUNBAKED TRUNK OR HOW MANY TIMES A SODA MACHINE'S BUTTONS CAN BE PUSHED THE SECURITY SETUP AT THE ENGINEERING AND TEST DIVISION OF DAYTON T BROWN INC SEEMS A BIT MUCH BUT AS VISITORS CHECK IN THEY SEE WHY THERE ARE GUARDS AND WHY BARBEDWIRE FENCES SURROUND THE SPRAWLING TESTING LABORATORY HERE ON LONG ISLAND THIS COMPANY WAS FOUNDED IN 1950 TO TEST FLIGHTSAFETY AND SURVIVAL GEAR HYDRAULIC SYSTEMS AND ELECTRONIC PARTS FOR GOODS SOLD TO THE US DEFENSE DEPARTMENT NOW HOWEVER WITH THE DECLINE OF THE MILITARYINDUSTRIAL COMPLEX THE 20 MILLIONAYEAR TESTING OPERATION ABOUT 70 OF THE COMPANY'S TOTAL SALES DEPENDS AS MUCH ON DIVERSIFYING AS IT DOES ON THE MILITARY WE WERE LOOKING AT A DECLINE OF 10 A YEAR IN DEFENSE WORK AFTER GETTING USED TO GROWTH OF 15 ANNUALLY SAYS C KENNETH MORRELLY SENIOR VICE PRESIDENT OF THE DIVISION THE REST OF THE PRIVATE COMPANY WHICH WAS FOUNDED BY AIRCRAFT PIONEER DAYTON T BROWN HE PATENTED RETRACTABLE LANDING GEAR FOR PLANES ON AIRCRAFT CARRIERS CREATES DECORATIVE COVERS AND STEEL CHASSIS FOR COMMERCIAL PRODUCTS LIKE COPYING MACHINES MR MORRELLY RESPONDED TO THE COLD WAR THAW BY DEVELOPING A GRID LISTING THE FIRM'S CORE COMPETENCIES AND ITS LIKELY MARKETS EACH AREA WOULD BE COURTED BY NEW COMMANDO SALES TEAMS THE FIRST THING WE DID WHEN WE THOUGHT ABOUT DIVERSIFICATION WAS TO LOOK AT NEW OPPORTUNITIES IN WHAT WE ALREADY DID BEST SERVING THE MILITARY MARKET SAYS MR MORRELLY HIS DIVISION HAD NEVER DEALT WITH THE ARMY BECAUSE WE HEARD THEY DIDN'T TEST THINGS OUR WAY BUT THEN WE SAW THEY HAD CHANGED FINDING NEW COMMERCIAL MARKETS WASN'T AS EASY IN THE FIRST PHASE OF LOOKING WE SPREAD OURSELVES THIN LOOKING AT EVERYWHERE THERE JUST MIGHT BE A FIT HE SAYS THAT ELIMINATED THE MEDICAL FIELD TOO MUCH MODIFICATION OF TEST EQUIPMENT CRASH TESTING OF CARS TOO MUCH NEW CAPITAL EXPENSE AND TESTING FOR AIR AND WATER POLLUTION TOO FAR AFIELD BUT THE SEARCH FOR NEW MARKETS CONFIRMED THE UNIT'S BELIEF THAT HELPING COMPANIES EXTEND THE LIFE OF EQUIPMENT WAS A GROWING TREND AND THE UNIT ALSO FOUND THAT THE CAPITAL INVESTMENT NEEDED TO TEST ELECTRONIC PRODUCTS FOR INTERFERENCE CAUSED BY ELECTROMAGNETIC FIELDS WOULD BE OFFSET BY COMMERCIAL AND MILITARY CONTRACTS IT'S BEEN A STRESSFUL TIME FOR THE ORGANIZATION SAYS MR MORRELLY THE STRESS INCLUDED TAKING A GAMBLE ON NEW TESTING EQUIPMENT BEFORE IT WAS CLEAR THERE WOULD BE ENOUGH NEW COMMERCIAL BUSINESS TO SUPPORT IT AN EVEN TOUGHER DECISION BECAUSE DECLINING MILITARY BUSINESS AND INCREASINGLY COMPETITIVE PRICING WERE PUTTING A CRIMP IN EARNINGS THE TESTING UNIT SPENT ABOUT 15 MILLION ABOUT 30 ABOVE NORMAL FOR NEW TESTING EQUIPMENT IN THE PAST FEW YEARS SOME OF THAT OUTLAY BOUGHT THE CAPABILITY TO TEST NEW TELEPHONES AND TO PERFORM COMPUTERIZED STRESS ANALYSES OF STRUCTURES BY HOOKING UP SENSORS SAY TO THE LEGS OF A CHAIR BUT THE EFFORTS AND THE EXTRAEQUIPMENT SPENDING WHICH MR MORRELLY EXPECTS WILL CONTINUE AT HIGH LEVELS ARE PAYING OFF BESIDES SODA BUTTONS AND HAIR MOUSSE MR MORRELLY'S TESTERS THESE DAYS ARE HOOKING UP MACHINES THAT BLAST HIGHWAY SIGNS WITH DUST FOG OR SAND TO SEE IF THEY CORRODE TOO QUICKLY IN ANOTHER CHAMBER ELECTROMAGNETIC SIGNALS RECENTLY ZAPPED AN ELECTRONICALLY CONTROLLED JACUZZI TESTING WHETHER OTHER ELECTRONIC GADGETS IN THE HOME INTERFERE WITH TURNON COMMANDS SENT FROM AFAR AGAINST A WALL A MACHINE IS LATCHING AND UNLATCHING A BATCH OF AUTO SEAT BELTS TO TEST THEIR RETRACTORS THE DIVISION IS MARKETING A DEVICE FOR MONITORING EQUIPMENT THAT WOULD ALLOW A COMPANY SAY A POWER PLANT TO GAUGE HOW MUCH LIFE IS LEFT IN PARTS OF A SYSTEM AND WHEN AND WHERE TO APPLY PREVENTIVE MAINTENANCE CALLED INTRINSIC HEALTH MONITOR THE ATTACHMENT LISTENS FOR VIBRATIONS MEASURES HEAT AND DETECTS FRICTION HEAVYDUTY MILITARY TESTING AND PRODUCT DEVELOPMENT LARGELY FOR THE NAVY REMAIN THE COMPANY'S BREADANDBUTTER BUSINESS OUTSIDE THE BUILDING A FLIGHT HELMET WITH SOPHISTICATED ELECTRONIC GEAR IS FITTED TO A DUMMY AND SUBJECTED TO 600 MPH WIND BLASTS HIGHSPEED CAMERAS UNDER BRIGHT LIGHTS CAPTURE WHAT IF ANYTHING BREAKS AWAY FROM THE FORCE AND BEHIND A BIG BLACK SECURITY CURTAIN IS SOMETHING BEING SHOCKTESTED BY THE PERCUSSION OF A LARGE HAMMER HITTING A STEEL ANVIL TO SIMULATE A DEPTH CHARGE OUTSIDE A SUBMARINE OR SHIP SPREAD THROUGHOUT THE FACILITY ARE MACHINES RECORDING TEST DATA NUMERICALLY OR ON GRAPHIC COLOR DISPLAY THE DIVISION RUNS 1500 TO 2000 TESTS A YEAR ABOUT A DOZEN ARE UNDER WAY AT ANY GIVEN TIME USUALLY RANGING IN COST FROM A FEW THOUSAND DOLLARS TO 25000 OCCASIONALLY SOMETHING GOES WRONG AS WHEN A PROJECTILE FIRED AT AN OXYGENSTORAGE CYLINDER FOR NAVY FIGHTER PLANES EXPLODED RECENTLY SHAKING THE BUILDING TO ITS RAFTERS THE TEST TO MEASURE HOW MUCH THE CYLINDER SPLINTERED UPON IMPACT WENT AWRY WITHOUT ANY INJURIES BECAUSE A NEW LIGHTWEIGHT ALUMINUM CENTER THREW OFF SPARKS WHEN HIT AND AS THE MAKER OF HAIR MOUSSE FEARED THE PRODUCT DOES EXPLODE WHEN PACKED IN THE TRUNK OF A HOT CAR NEW YORK STATE HELPED SPUR SOME OF DAYTON BROWN'S COMMERCIAL DIVERSIFICATION INCLUDING THE HEALTH MONITOR BY GRANTING THE COMPANY ABOUT 100000 FOR DEVELOPMENT OF DOMESTIC AND INTERNATIONAL MARKETS AS WELL AS TRAINING ON NEW EQUIPMENT IRONICALLY THE BIGGEST PAYOFF IN THE SEARCH FOR NEW MARKETS HAS BEEN A RECENT ARMY CONTRACT UP TO 30 MILLION A YEAR FOR FIVE YEARS TO TEST AND DEVELOP ALTERNATIVE SOURCES FOR SPARE PARTS A RECENT CUSTOMER USING DAYTON BROWN FOR ELECTROMAGNETIC AND OTHER ENVIRONMENTAL TESTING IS INTERDYNAMICS INC WHICH MAKES AN ELECTRONIC TEMPERATURECONTROL SYSTEM FOR VEHICLES THE SYSTEM NEEDED TO BE TESTED FOR EUROPEAN MARKET SPECIFICATIONS THEY FOUND SOME ELECTRONIC NOISES WOULD SCRAMBLE OUR LIQUID DISPLAY CRYSTALS SAYS JERRY TRACHTENBERG PRESIDENT OF THE BROOKLYN COMPANY ANOTHER SUCH CUSTOMER WAS AMERICAN TELEPHONE & TELEGRAPH CO WHICH ALSO MADE SOME ADJUSTMENTS AFTER THE BROWN UNIT TESTED AN AT&T SONARPROCESSING SUPERCOMPUTER FOR NAVY AIRCRAFT TO DETECT ENEMY SUBMARINES MOST TESTS RESULT IN MODIFICATIONS BUT MR MORRELLY'S UNIT MERELY REPORTS ITS FINDINGS BASED ON SPECIFICATIONS DRAWN UP BY THE DEFENSE DEPARTMENT OR THE COMPANIES THEMSELVES WE AREN'T HERE TO BE A POLICEMAN OR TO SAY SOMETHING PASSES OR FAILS A TEST HE SAYS IT'S UP TO THE CUSTOMER TO DETERMINE IF THE FINDINGS ARE SUFFICIENT TO REQUIRE A CHANGE 9311020089 931102 BUSINESS BRIEF GATEWAY COMMUNICATIONS INC INVESTMENT BANKER IS HIRED TO STUDY SALE OF SUPPLIER GATEWAY COMMUNICATIONS INC SAID IT HIRED AN INVESTMENT BANKER TO EXAMINE STRATEGIC ALTERNATIVES INCLUDING SALE OF THE COMPANY AND HAD BEGUN PRELIMINARY DISCUSSIONS WITH SEVERAL POTENTIAL SUITORS GATEWAY HAS FACED SHRINKING REVENUES AND MARGINS AS A RESULT OF PRICE COMPETITION SINCE EARLY LAST YEAR THE IRVINE CALIF COMPANY SAID IT CUT ITS WORK FORCE BY 15 PEOPLE OR 20 FOR THE THIRD QUARTER IT HAD A NET LOSS OF 723000 OR 14 CENTS A SHARE A YEAR EARLIER IT HAD PROFIT OF 59000 OR ONE CENT A SHARE THE CURRENTQUARTER RESULTS INCLUDE A ONETIME NONCASH INCOME TAX CHARGE OF 213000 FOR AN ACCOUNTING CHANGE REVENUE DECREASED 444 TO 25 MILLION FROM 44 MILLION GATEWAY A SUPPLIER OF NETWORKING PRODUCTS TO THE PERSONAL COMPUTER MARKET ALSO HAS BEEN SQUEEZED BY LITIGATION COSTS AND RESTRUCTURING COSTS ASSOCIATED WITH STAFF REDUCTIONS 9311020088 931102 BUSINESS BRIEF CHIRON CORP NET INCOME WAS 49 MILLION DURING THE THIRD QUARTER CHIRON CORP SAID THIRDQUARTER EARNINGS REVERSED A YEAREARLIER LOSS MOSTLY ON STRENGTHENED SALES OF CANCER AND EYECARE PRODUCTS AND ON INCREASED COLLABORATIVE RESEARCH REVENUE NET INCOME FOR THE EMERYVILLE CALIF BIOTECHNOLOGY CONCERN WAS 49 MILLION OR 15 CENTS A SHARE COMPARED WITH A LOSS OF 75 MILLION OR 25 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 28 TO 784 MILLION FROM 613 MILLION THE THIRDQUARTER 1992 RESULTS INCLUDE A CHARGE OF 26 MILLION FOR EARLY RETIREMENT OF DEBT CHIRON CLOSED AT 82375 UP 1875 IN NATIONAL OVERTHECOUNTER TRADING DURING THE QUARTER CHIRON SAID IT MADE INITIAL SHIPMENTS OF ITS RECENTLY APPROVED MULTIPLE SCLEROSIS DRUG BETASERON TO BERLEX LABORATORIES INC CHIRON WILL MAKE THE DRUG AND BERLEX A UNIT OF GERMANY'S SCHERING AG WILL MARKET IT 9311020087 931102 BUSINESS BRIEF AMERITECH CORP COMPANY FILES 2 MOTIONS CHALLENGING 1984 CABLE ACT FOLLOWING IN THE FOOTSTEPS OF BELL ATLANTIC CORP AMERITECH CORP IN CHICAGO THE REGIONAL BELL COMPANY FILED MOTIONS IN TWO FEDERAL COURTS YESTERDAY SEEKING TO FREE ITSELF OF THE BAN ON PROVIDING VIDEO SERVICES IN ITS OWN SERVICE AREA AMERITECH ASKED US DISTRICT COURTS IN ILLINOIS AND MICHIGAN TO DECLARE UNCONSTITUTIONAL THE PROVISIONS OF THE 1984 CABLE ACT THAT BAR ALL SEVEN REGIONAL BELL COMPANIES FROM PROVIDING CABLETV SERVICE IN AREAS WHERE THEY HOLD MONOPOLIES ON LOCAL PHONE SERVICE ONLY BELL ATLANTIC WHICH HAS AGREED TO ACQUIRE CABLE OPERATOR TELECOMMUNICATIONS INC HAS WON THE RIGHT TO ENTER THE VIDEOSERVICES BUSINESS BELL ATLANTIC WON THE DECLARATION FROM THE US DISTRICT COURT IN VIRGINIA IN AUGUST BUT THAT COURT DENIED THE REQUESTS OF AMERITECH AND OTHER BABY BELLS AMERITECH PROVIDES LOCAL PHONE SERVICE TO ILLINOIS INDIANA MICHIGAN OHIO AND WISCONSIN 9311020086 931102 MIXED SIGNALS CLINTON'S NAFTA DRIVE BELIES NAGGING DOUBTS ON HIS COMMITMENT ALWAYS FOR THE PACT HE LEFT SOME CONFUSED BY MOVES TO LIMIT POLITICAL RISKS THE CONSEQUENCES OF A DEFEAT BY MICHAEL K FRISBY AND GERALD F SEIB STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON EARLY ONE JULY EVENING PRESIDENT CLINTON SENT OUT THE SIGNAL HE WOULD FIGHT TO THE END FOR THE NORTH AMERICAN FREE TRADE AGREEMENT YET AS HAS SO OFTEN BEEN THE CASE OTHERS WEREN'T QUITE CONVINCED HE MEANT IT AS MR CLINTON GATHERED CABINET MEMBERS AT THE WHITE HOUSE THAT EVENING THE TRADE DEAL WAS AT A CRUCIAL JUNCTURE LABORIOUS NEGOTIATIONS WITH MEXICO OVER SIDE AGREEMENTS TO TOUGHEN ITS LABOR AND ENVIRONMENTAL STANDARDS WERE NEARING COMPLETION AND SOME IN THE ADMINISTRATION RAISED THE NOTION OF LETTING THE TALKS BOG DOWN AS A WAY OF BACKING AWAY FROM THE WHOLE DEAL BUT MR CLINTON SCOTCHED THAT IDEA WE ARE GOING FORWARD HE SAID ACCORDING TO A CABINET MEMBER WHO WAS THERE I AM FOR THIS DESPITE REPEATED OPPORTUNITIES OVER THE PAST TWO YEARS TO PULL AWAY FROM A TRADE DEAL DEEPLY UNPOPULAR IN HIS OWN DEMOCRATIC PARTY MR CLINTON HAS PUSHED AHEAD HIS ACTIONS INDICATE HIS PERSONAL CONVICTION THAT NAFTA IS A GOOD IDEA AND A JOB CREATOR IN THE LONG RUN YET AT THAT JULY MEETING AS IN OTHER INSTANCES MR CLINTON SEEMED STRANGELY UNABLE TO CONVINCE OTHERS THAT HE WAS COMMITTED TO THE POLITICAL FIGHT NEEDED TO WIN NAFTA TREASURY SECRETARY LLOYD BENTSEN AN ARDENT NAFTA BACKER WAS CONCERNED ENOUGH THAT HE LATER MET PRIVATELY WITH MR CLINTON TO MAKE SURE THAT THE AGREEMENT TO CREATE A COMMON MARKET LINKING CANADA MEXICO AND THE US WOULDN'T DIE FROM NEGLECT AND JUST WEEKS LATER MR CLINTON'S OWN STAFF PROPOSED A FALL SCHEDULE THAT INITIALLY HAD HIM DEVOTING MORE THAN A MONTH TO PROMOTING HEALTHCARE REFORM AND JUST ONE DAY TO NAFTA MR BENTSEN AGAIN SOUGHT A PRIVATE MEETING WITH THE PRESIDENT THEY WERE BOTH PRIORITIES HEALTH CARE AND NAFTA BUT ONCE AGAIN THE SCHEDULERS WEREN'T SETTING THAT AGENDA MR BENTSEN SAYS I SPOKE WITH HIM SPECIFICALLY ABOUT THAT AND SOME OTHERS DID TOO THE SCHEDULE WAS CHANGED WITH THE CONGRESSIONAL VOTE ON NAFTA JUST WEEKS AWAY MR CLINTON'S PERSONAL COMMITMENT IS A CRUCIAL FACTOR IN THE UPHILL FIGHT TO WIN APPROVAL BUT IF THE PICTURE OF MR CLINTON REMAINS BLURRED IT IS BECAUSE HE HAS PERIODICALLY HESITATED TO ACT ON HIS PERSONAL CONVICTIONS APPARENTLY RATTLED BY NAFTA'S HUGE POLITICAL RISKS AND THAT HESITATION HAS ENABLED NAFTA DOUBTERS WITHIN HIS OWN CAMP TO MOVE INTO THE VOID AND SUBTLY SHIFT THE FOCUS ELSEWHERE THE NET RESULT MR CLINTON STILL COULD LOSE ON NAFTA IRONICALLY A DEFEAT AT THIS LATE STAGE WOULD DAMAGE HIS PRESIDENCY MORE DEEPLY THAN IF HE HAD ANGERED SOME SPECIALINTEREST GROUPS BY PUSHING NAFTA PASSIONATELY ALL ALONG AND SUCH A DEFEAT WOULD HAVE OTHER MAJOR CONSEQUENCES IT WOULD UNDERCUT MR CLINTON'S IMAGE AS A WORLD LEADER AN IMAGE ALREADY MARRED BY HIS TROUBLES IN BOSNIA HAITI AND SOMALIA HE WOULD BE THE FIRST PRESIDENT SINCE THE END OF WORLD WAR II NOT TO GET A TRADE AGREEMENT SAYS SEN BILL BRADLEY A NEW JERSEY DEMOCRAT WHO STRONGLY SUPPORTS NAFTA IT WOULD CAST A CHILL OVER THE EFFORT TO COMPLETE A GLOBALTRADE ACCORD UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE CLOSING THAT DEAL WILL REQUIRE PAINFUL CONCESSIONS FROM LEADERS IN EUROPE JAPAN AND THIRD WORLD NATIONS ALL OF WHOM COULD BALK AT RISKING POLITICAL SUICIDE TO FINISH AN AGREEMENT THAT THEY THINK MR CLINTON COULDN'T GET APPROVED A FAILURE OF THE GATT NEGOTIATIONS IN TURN COULD STRENGTHEN PROTECTIONISM WORLDWIDE WITH POTENTIALLY DISASTROUS CONSEQUENCES FOR GLOBAL TRADE AND EVEN INTERNATIONAL STABILITY IF IT SPARKED A RETURN TO THE BEGGARTHYNEIGHBOR POLICIES OF THE INTERWAR PERIOD AT THE VERY LEAST IT WOULD COMPLICATE EFFORTS TO REDUCE JAPANESE TRADE BARRIERS AND ULTIMATELY COULD SAP JOB GROWTH IN THE US IT WOULD SERIOUSLY IMPAIR US RELATIONS WITH MEXICO BY WEAKENING THE MOST PROUS PRESIDENT IN THAT COUNTRY'S HISTORY AND STRENGTHENING THE EVERPRESENT ANTIGRINGO SUSPICIONS THAT DISTRUST WOULD QUICKLY INFECT ALL LATIN AMERICA AND EVEN MORE MEXICANS WITH THEIR ECONOMIC HOPES THWARTED AT HOME WOULD BE TEMPTED TO TRY TO ENTER THE US ILLEGALLY IT WOULD HIT MR CLINTON WITH BLEAK DOMESTIC POLITICAL REPERCUSSIONS IF NAFTA LOSES IT WILL DO SO BECAUSE HE FAILED TO CONVERT ENOUGH DEMOCRATS SOWING DOUBTS ABOUT HIS MASTERY OF HIS OWN PARTY IN ADVANCE OF THE MOMENTOUS VOTES ON HEALTH CARE AND TRADE ANALYST CLYDE PRESTOWITZ BELIEVES THAT IF NAFTA LOSES THE PEROT FACTOR BECOMES HUGE BECAUSE ROSS PEROT HAS BECOME THE PERSONIFICATION OF ANTINAFTA SENTIMENT GIVEN THOSE STAKES MR CLINTON HAS BELATEDLY SHIFTED HIS DRIVE FOR NAFTA INTO HIGH GEAR A FEW WEEKS AGO AIDES SAY HE WALKED INTO THE TEETH OF ANTINAFTA SENTIMENT AT A PRIVATE MEETING WITH LEADERS OF THE AFLCIO HE TOLD THE LABOR CHIEFTAINS NOT TO WITHHOLD FUNDS FROM DEMOCRATS WHO SUPPORT NAFTA AND NOT TO RUN PRIMARY CANDIDATES AGAINST NAFTA SUPPORTERS AS SOME UNION MEMBERS HAD THREATENED AND MR CLINTON HAS BEGUN OFFERING FAVORS TO DEMOCRATS AND REPUBLICANS WHO SUPPORT NAFTA HE TELLS WAVERING LAWMAKERS FROM BOTH PARTIES THAT HE WILL PERSONALLY MEET WITH 100 OF THEIR KEY SUPPORTERS INCLUDING THEIR FUNDRAISERS TO OUTLINE THE IMPORTANCE OF SUPPORTING NAFTA HE EVEN TELLS REPUBLICANS THAT HE WON'T CAMPAIGN AGAINST THEM IN THEIR DISTRICTS AND MORE IMPORTANT THAT THE DEMOCRATIC PARTY APPARATUS WON'T ATTACK THEM FOR THEIR NAFTA VOTE THE PRESIDENT'S GAME PLAN CALLS FOR A FINAL TWOWEEK BLITZ OF NAFTA PROMOTION BEFORE THE SCHEDULED NOV 17 VOTE INCLUDING ROAD TRIPS AND A LIKELY APPEARANCE ON SOME KIND OF NATIONALLY TELEVISED TALK SHOW HE IS VERY VERY FOCUSED ON THAT PERIOD LEADING UP TO THE VOTE SAYS WILLIAM DALEY WHO IS LEADING THE WHITE HOUSE SALES EFFORT YESTERDAY MR CLINTON STUMPED HARD FOR NAFTA IN A SPEECH AT THE US CHAMBER OF COMMERCE I WOULD NEVER KNOWINGLY DO ANYTHING THAT WOULD COST AN AMERICAN A JOB HE SAID MY JOB IS TO TRY TO RECOVER THE ECONOMIC VITALITY OF THIS COUNTRY BY WORKING IN PARTNERSHIP WITH THE PRIVATE SECTOR AND TODAY MR CLINTON HOSTS AN EVENT IN THE WHITE HOUSE WHERE A BIPARTISAN GROUP OF FORMER GOVERNMENT LUMINARIES INCLUDING HENRY KISSINGER AND ANDREW YOUNG AS WELL AS NOBEL PRIZEWINNING ECONOMISTS WILL ENDORSE THE ACCORD MR CLINTON ALSO IS DISPLAYING SOME GENUINE PASSION JUST A FEW NIGHTS AGO HE CALLED REP SAM GEJDENSON AT 11 PM TO PRESS HIM ON THE DEAL I MADE A COUPLE OF PRETTY GOOD ATTEMPTS OF CLOSING THE CONVERSATION ON NAFTA BUT HE KEPT BRINGING ME BACK TO NAFTA SAYS MR GEJDENSON A CONNECTICUT DEMOCRAT WHO DOESN'T FAVOR THE AGREEMENT HE DID THAT FOUR OR FIVE TIMES HE KEPT PUSHING I CAN'T IMAGINE SOMEONE BEING MORE PERSISTENT BUT WHY DIDN'T MR CLINTON AND HIS ADMINISTRATION CONVEY THIS KIND OF PASSION EARLIER THE ANSWER SEEMS TO LIE IN THE DISCONNECTION BETWEEN HIS OWN FEELINGS AND A SERIES OF TACTICAL POLITICAL CONSIDERATIONS THAT WERE DESIGNED TO APPEASE HIS DISSENTING FRIENDS WITHIN THE PARTY AND COLORED HIS PUBLIC PRESENTATION OF THE ISSUES IN SEEKING THE PRESIDENCY MR CLINTON MOVED ONTO PRONAFTA TURF EARLY DESPITE THE CAMPAIGN BARBS ABOUT A BUBBA FROM ARKANSAS MR CLINTON IS A FORMER SENATE FOREIGN RELATIONS COMMITTEE STAFFER WHO TENDS TO BE COMFORTABLE WITH THE KIND OF MAINSTREAM FOREIGNPOLICY THINKING THAT NAFTA TYPIFIES AND HE WAS A GOVERNOR AT A TIME WHEN MANY STATE CHIEF EXECUTIVES GREW INFATUATED WITH THE IDEA OF DEVELOPING FOREIGN MARKETS AGAINST THAT BACKDROP MICKEY KANTOR WHO LATER BECAME MR CLINTON'S CAMPAIGN CHAIRMAN AND THEN HIS TRADE REPRESENTATIVE CALLED A WASHINGTON MEETING OF KEY CLINTON SUPPORTERS IN THE SUMMER OF 1991 WHEN SOME AT THE MEETING CITED THE PROBLEMS THAT SUPPORTING NAFTA MIGHT BRING MR CLINTON DECLARED IF YOU GUYS WANT ME TO RUN AS AN ISOLATIONIST OR A PROTECTIONIST YOU NEED ANOTHER CANDIDATE I'M NOT GOING TO DO IT AS A CAMPAIGNER MR CLINTON USED HIS SUPPORT FOR FREER TRADE TO SHARPEN HIS IMAGE AS A NEW DEMOCRAT WHO WOULD GOVERN TO THE RIGHT OF TRADITIONAL LIBERAL DEMOCRATS NAFTA OPPOSED BY LABOR UNIONS BOLSTERED THAT IMAGE BUT POLITICAL CROSSCURRENTS CAUSED MR CLINTON TO WAVER IN THE FIRST BIG TEST IN THE MARCH 1992 MICHIGAN PRIMARY HE TOLD AUTO WORKERS IN FLINT THAT HE FAVORED NAFTA BUT ADDED THAT HE MIGHT OPPOSE THE BUSH VERSION IF HE DIDN'T LIKE ITS DETAILS THE MOMENT OF TRUTH CAME IN AUGUST 1992 JUST OVER TWO MONTHS BEFORE THE ELECTION WHEN THE BUSH ADMINISTRATION ANNOUNCED THAT ITS NEGOTIATORS HAD WRAPPED UP THE NAFTA AGREEMENT THAT SET OFF INTENSE DEBATES IN THE CLINTON CAMP MR CLINTON'S WIFE HILLARY RODHAM CLINTON AS WELL AS CAMPAIGN MANAGER AND NOW DEMOCRATIC NATIONAL CHAIRMAN DAVID WILHELM AND POLITICAL ADVISER PAUL BEGALA ALL HAD DOUBTS ABOUT BACKING NAFTA POLLSTER STANLEY GREENBERG PRODUCED SURVEYS SUGGESTING THAT A PRONAFTA POSITION COULD COST MR CLINTON THE RACE IN THE CRUCIAL STATES OF MICHIGAN AND OHIO THOUGH MR GREENBERG HIMSELF FAVORED ENDORSING NAFTA TO REINFORCE THE NEW DEMOCRAT IMAGE MR CLINTON HESITATED FOR SEVERAL WEEKS AND THEREBY PLANTED THE DOUBTS THAT PERSIST TO THIS DAY AL FROM PRESIDENT OF THE CENTRIST DEMOCRATIC LEADERSHIP COUNCIL AND A NAFTA BACKER WAS AMONG THOSE CONCERNED THAT MR CLINTON MIGHT BUCKLE UNDER THE ANTINAFTA PRESSURE AT A FUNDRAISER AT THE VIRGINIA ESTATE OF DEMOCRATIC HEAVYWEIGHT PAMELA HARRIMAN MR FROM PULLED MR CLINTON ASIDE TO ASK WHAT'S GOING ON MR CLINTON REPLIED DON'T WORRY ABOUT IT THE ARGUMENTS OF THE OPPONENTS AREN'T RIGHT I'LL DO IT MY WAY RELUCTANT TO SQUELCH THE WORRIES OF HIS FRIENDS MR CLINTON LET THE DEBATE RUN ITS COURSE THEN DECLARED HIS POSITION AT A THREEHOUR MEETING WITH 25 ADVISERS IN A SUBURBANWASHINGTON HOTEL SUITE IN LATE SEPTEMBER HE WOULD ENDORSE THE EXISTING ACCORD BUT ALSO CALL FOR SIDE LABOR AND ENVIRONMENTAL AGREEMENTS I'M FOR OPEN MARKETS I'M FOR INCREASING OUR EXPORTS THE CANDIDATE SAID ACCORDING TO NOTES TAKEN BY ONE PARTICIPANT I JUST WANT TO DO IT IN A WAY THAT DOESN'T HURT PEOPLE TO UNDERSCORE HIS SUPPORT MR CLINTON SECRETLY CALLED HIS FRIEND HENRY CISNEROS NOW THE HOUSING SECRETARY AND ASKED HIM TO PERSONALLY CONVEY TO MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI HIS ENDORSEMENT OF NAFTA THE DECISION PUT MR CLINTON CLEARLY ON THE SIDE OF NAFTA BUT ALSO LEFT A HARMFUL LEGACY BECAUSE THE SIDE DEALS DEFINED THE DIFFERENCES BETWEEN THE BUSH AND CLINTON POSITIONS THEY BECAME THE CENTER OF CLINTON ADMINISTRATION ATTENTION UNTIL THEY WERE FINISHED THIS PAST AUGUST BY THEIR VERY EXISTENCE THE SIDE DEALS IMPLY FLAWS IN THE MAIN AGREEMENT AND UNDERCUT THE JOB OF SELLING IT DOUBTS ALSO ENDURE BECAUSE OUTSIDERS SENSE THAT MR CLINTON'S SUPPORT FOR NAFTA UNLIKE THAT OF MOST REPUBLICANS IS ROOTED MORE IN PRAGMATISM THAN IN FIRM IDEOLOGY HE BELIEVES THAT OPENING MARKETS WILL CREATE US JOBS BUT ALSO HAS TOLD ADVISERS THAT AMERICANS WON'T ACCEPT NAFTA UNLESS IT IS ACCOMPANIED BY A VIGOROUS GOVERNMENT JOBTRAINING PROGRAM THAT MAKES IT EASIER TO SWALLOW HE IS CONVINCED IT MAKES SENSE BECAUSE IT IS PRACTICAL IT IS A WAY OF DEALING WITH THE CHANGES CONFRONTING US SAYS THOMAS MANN A BROOKINGS INSTITUTION ANALYST UNLIKE MANY MEMBERS OF THE CABINET AND MANY PRESIDENTIAL ADVISERS MOST IN THE CLINTON INNER CIRCLE HAVE BEEN CONVINCED FOR MONTHS THAT MR CLINTON WOULD STICK WITH NAFTA AT ONE POINT WHEN DEPUTY TREASURY SECRETARY ROGER ALTMAN AND WHITE HOUSE ECONOMIC AIDE BOWMAN CUTTER WERE LEAVING FOR TRADE TALKS IN TOKYO MR CLINTON CALLED THEM TO THE OVAL OFFICE AT THE LAST MINUTE AND UNDERSCORED HIS SUPPORT FOR NAFTA AT ANOTHER POINT A FRUSTRATED MR CLINTON TURNED TO MR KANTOR AND IMPLORED HIM TO HURRY AND FINISH THE SIDE AGREEMENTS SO THAT HE COULD BEGIN SELLING THE ENTIRE TREATY AND WHEN A FEDERAL JUDGE DECLARED IN AUGUST THAT NAFTA COULDN'T BE IMPLEMENTED WITHOUT A COMPLEX ENVIRONMENTALIMPACT STATEMENT THERE WAS NO SERIOUS THOUGHT OF PULLING THE PLUG THE RULING WAS OVERTURNED ON APPEAL BUT THAT HASN'T STOPPED AN INTERNAL DEBATE THAT CONTINUES TO FEED EXTERNAL UNCERTAINTY SENSING THAT MR CLINTON WON'T YIELD ON THE SUBSTANCE OF NAFTA DOUBTERS HAVE FOCUSED INSTEAD HIS POLITICAL INSTINCTS CLINTON AIDE GEORGE STEPHANOPOULOS WAS ESPECIALLY VIGOROUS IN RAISING TOUGH QUESTIONS IN MEETINGS ABOUT WHETHER NAFTA COULD BE WON AND WHETHER THE RISKS OF LOSING WERE TOO HIGH OFFICIALS SAY AND AS RECENTLY AS SEPTEMBER WHITE HOUSE CHIEF OF STAFF THOMAS MACK MCLARTY WAS CONCERNED ENOUGH ABOUT ANTINAFTA AGITATION THAT HE PAVED THE WAY FOR SOME NAFTA SUPPORTERS TO RESTATE THEIR CASES TO MR CLINTON DIRECTLY 9311020085 931102 LEISURE & ARTS ON SPORTS COUCH POTATO'SEYE VIEW OF COLLEGE FOOTBALL BY FREDERICK C KLEIN EVANSTON ILL I SPENT ALMOST 13 HOURS WATCHING COLLEGE FOOTBALL ON TELEVISION SATURDAY I KNEW IT WAS FOOTBALL BECAUSE THE ANNOUNCERS KEPT TELLING ME IT WAS THEY KEPT SAYING HOW THIS OR THAT YOUNG MAN WAS A GREAT FOOTBALL PLAYER WHO COULD RUN THE FOOTBALL PASS THE FOOTBALL CATCH THE FOOTBALL OR SIMPLY MAKE GREAT FOOTBALL PLAYS I'VE ASKED FOOTBALL BROADCASTERS WHY THEY SAY FOOTBALL SO OFTEN THEY'VE JUST SHRUGGED I CAN ONLY CONCLUDE IT'S A VERBAL TIC SIMILAR TO SOME PEOPLE'S REPEATED INSERTION OF THE WORDS LIKE OR YOU KNOW INTO THEIR CONVERSATIONS SO LIKE I GUESS WE'RE STUCK WITH IT YOU KNOW I STUCK WITH IT BECAUSE BUSY WITH OTHER THINGS ON RECENT WEEKENDS I'D SEEN ALMOST NO COLLEGE FOOTBALL THIS SEASON BUT GIVEN THE THIRST FOR TV EXPOSURE AMONG OUR INSTITUTIONS OF HIGHER LEARNING THIS LACK WAS EASILY REMEDIED BETWEEN 11 AM AND ABOUT MIDNIGHT CENTRAL DAYLIGHT TIME WITH ONLY OCCASIONAL BREAKS FOR MEALS ERRANDS AND NAPS I SAW PARTS OF EIGHT GAMES INVOLVING THE TEAMS RANKED NOS 2 3 4 7 12 13 17 20 22 AND 23 IN THE NATION PLUS SUNDRY OTHERS I LEARNED THAT MICHIGAN HAS A WIDE RECEIVER NAMED MERCURY HAYES AND NAVY A DEFENSIVE BACK NAMED JOE SPEED I LEARNED THAT UNLIKE THEIR BASKETBALL COUNTERPARTS COLLEGE FOOTBALL PLAYERS DON'T HAVE MOTTOS SHAVED INTO THEIR HAIR THAT'S PROBABLY BECAUSE THEY HAVE TO WEAR HELMETS AND FROM THE ANNOUNCERS I LEARNED A THING OR TWO ABOUT THE LANGUAGE QUARTERBACKS SHOULD THROW IN THE DIRECTION OF THE BLITZ BECAUSE THERE'LL BE A HOLE OR CAVITY THERE SAID ONE DURING THE OHIO STATEPENN STATE GAME SO THAT'S WHAT CAVITY MEANS HERE ARE SOME OF THE OTHER HIGHLIGHTS NOTRE DAMENAVY AT PHILADELPHIA 11 AM ABC I WARMED UP FOR THIS ONE BY WATCHING THE LOU HOLTZ SHOW FEATUOTRE DAME COACH IT RUNS ABOUT THREE TIMES A DAY ON THE CHICAGOAREA ALLSPORTS CABLE CHANNEL LAST WEEK'S OFFERING WAS MOSTLY A PLUG FOR THE MOVIE RUDY A TRUEISH STORY ABOUT A YOUNG MAN WHOSE GOAL IN LIFE WAS REALIZED WHEN HE PLAYED FOR 28 SECONDS IN A FIGHTING IRISH GAME THE REAL RUDY NOW PUFFILY MIDDLEAGED WAS INTERVIEWED AND HE OPINED THAT THE FILM'S ROCKYLIKE THEME WAS APPROPRIATE BECAUSE NOTRE DAME'S BEEN AN UNDERDOG ALL YEAR HOLTZ AND THE FELLOW WHO SERVES AS THE PROGRAM'S INTERLOCUTOR NODDED APPROVINGLY AT THE REMARK THAT INTELLIGENCE MUST HAVE ESCAPED THE NATION'S BETTORS FOR THE IRISH RANKED NO 2 NATIONALLY AND CLOMPING THROUGH ITS SCHEDULE UNBEATEN WERE 34 1/2POINT FAVORITES AGAINST NAVY TRAILING 2417 AFTER A HALF NOTRE DAME DISCOVERED THAT SOME OF ITS RUNNING BACKS WERE BIGGER THAN NAVY'S DEFENSIVE LINEMEN AND CLOMPED THROUGH THE MIDDIES TO WIN 5827 MICHIGAN AT WISCONSIN 1130 AM ESPN WINNERS OF SIX OF SEVEN GOING IN WISCONSIN HAD BEEN HAVING TROUBLE KICKING FIELD GOALS AND THE BROADCASTERS REVEALED THAT BADGER COACH BARRY ALVAREZ WOULD UNVEIL A NEW KICKER SOMEONE WHO EVEN HIS TEAMMATES DIDN'T KNOW HE TURNED OUT TO BE WALKON IE ACTUAL STUDENT RICK SCHNETSKY AND HIS TWO FIELD GOALS PROVED THE DIFFERENCE IN A 1310 VICTORY OTHER ACTUAL WISCONSIN STUDENTS THOSE IN THE STANDS PELTED THE VISITING WOLVERINES WITH MARSHMALLOWS AND EGGS AND SEVERAL OF THEM WERE INJURED SERIOUSLY IN THE POSTGAME RUSH TO INVADE THE FIELD TEXAS TECH AT TEXAS NOON SPORTSCHANNEL ONE OF THE ANNOUNCERS I WISH I'D HEARD HIS NAME INTRODUCED THIS CONTEST MATCHING 231 TEXAS AGAINST 25 TECH BY SAYING IT INVOLVED TWO OF THE NATION'S BEST TEAMS EVEN IF THEIR RECORDS DON'T INDICATE IT WITH TEXAS TRAILING 017 HE OPINED THAT THE LONGHORNS WOULD HAVE TO PLAY VERY WELL FROM HERE ON TO WIN I GUESS THEY DIDN'T 'CAUSE THEY LOST MORGAN STATEFLORIDA A&M AT ORLANDO FLA 1 PM BET THE DESIRE TO ACCENTUATE THE POSITIVE WAS STRONGER HERE WHEN A PUNTER ALL BUT MISSED THE BALL ON A KICK ANNOUNCER LEM BARNEY REMARKED ON HIS FORMFUL FOLLOWTHROUGH WITH MORGAN STATE TRAILING BY 20 POINTS MIDWAY THROUGH THE LAST QUARTER HE NOTED THAT WITH A FEW QUICK SCORES THE GAME WOULD BE EVEN BUT BARNEY ALSO GOT OFF THE DAY'S BEST LINE HE FELT THE HEAT SO HE GOT OUT OF THE KITCHEN HE SAID OF A SCRAMBLING QUARTERBACK PENN STATE AT OHIO STATE 230 PM ABC PENN STATE GOT ITS WHITE UNIFORMS ALL DIRTY ON A COLD WET AFTERNOON A DAY FOR THE BIG UGLIES ANNOUNCER KEITH JACKSON SAID AND GOT HAMMERED BY THE THIRDRANKED BUCKEYES MY MAJOR REGRET WAS THAT I WAS ELSEWHERE DURING THE GAME'S TWO FUMBLES AND THUS DIDN'T GET TO HEAR JACKSON CRY FUMMMMBLLLLE NEBRASKA AT COLORADO 230 PM ABC HOW COULD I HAVE WATCHED TWO GAMES AT THE SAME TIME ON THE SAME NETWORK BECAUSE FOR 895 I RECEIVED THIS GAME ON A PAYPERVIEW CHANNEL SOMETHING I'D NEVER DONE BEFORE THE PRESENTATION WAS INTERESTING INSTEAD OF COMMERCIALS DURING BREAKS IN THE ACTION SCORES OF OTHER CONTESTS WERE SHOWN THE MOST INTERESTING PART OF THE GAME WAS WHETHER BILL MCCARTNEY THE COLORADO COACH WOULD STICK WITH HIS INEFFECTUAL QUARTERBACK KORDELL STEWART HE DID AND STEWART THREW A LATE INTERCEPTION TO ENSURE A 2117 NEBRASKA WIN WEST VIRGINIA AT SYRACUSE 630 PM ESPN WEST VIRGINIA IS EVIDENTLY THE BESTKEPT SECRET IN COLLEGE FOOTBALL IT WHOMPED THE ORANGEMEN 430 BEHIND FINE PERFORMANCES BY QUARTERBACK JAKE KELCHNER AND RUNNING BACK ROBERT WALKER ACCORDING TO THE GAME'S ANNOUNCERS THE MOUNTAINEERS ALSO TOOK ADVANTAGE OF THE FACT THAT WITH PLAYERS WEIGHING A MERE 250 268 AND 274 POUNDS THE SYRACUSE DEFENSIVE LINE WAS A BIT UNDERSIZED ARIZONA AT UCLA 930 PM ESPN ARIZONA CAME IN UNBEATEN ITS DEFENSE HAVING SURRENDERED AN AVERAGE OF ONLY 15 RUSHING YARDS A GAME BUT UCLA KEPT GOING OVER AROUND AND THROUGH IT EACH TIME THE BRUINS LAUNCHED A DRIVE THE GUYS AT THE MIKE SAID THAT THIS TIME THEY'D SURELY BE STOPPED WHEN THE SCORE REACHED SOMETHING LIKE 270 UCLA I WENT TO BED IF I WERE A BROADCASTER I'D CALL THAT TURNING OFF THE FOOTBALL 9311020084 931102 BUSINESS BRIEF RODMAN & RENSHAW CAPITAL GROUP MEXICAN COMPANY ABACO OFFERS TO ACQUIRE 51 STAKE RODMAN & RENSHAW CAPITAL GROUP INC SAID IT RECEIVED AN OFFER FROM A MEXICAN FINANCIAL FIRM TO ACQUIRE A 51 STAKE IN THE CHICAGO SECURITIES FIRM FOR 1050 A SHARE OR AN INDICATED 234 MILLION RODMAN FOLLOWING AN EFFORT OF SEVERAL MONTHS TO DECIDE ON A BUYER FOR THE FIRM SAID ABACO GRUPO FINANCIERO A FINANCIAL SERVICES COMPANY BASED IN MONTERREY MEXICO OFFERED TO BUY 51 OF RODMAN'S SHARES OUTSTANDING AT 1050 EACH RODMAN HAS ABOUT 44 MILLION SHARES OUTSTANDING THE TRANSACTION SUBJECT TO REVIEW OF RODMAN'S BOOKS AND BUSINESS REGULATORY CLEARANCE AND NEGOTIATION OF AN AGREEMENT COMES AFTER RODMAN SOLICITED BIDS AND GOT EIGHT PROPOSALS IN SEPTEMBER RODMAN'S SHARES ROSE 625 CENTS OR 77 ON THE NEWS TO CLOSE AT 875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING RODMAN SAID IT WOULD NEGOTIATE WITH ABACO ENDING TALKS WITH A NEW YORK BROKERAGE CONCERN JOSEPHTHAL LYON & ROSS WHICH HAD PURSUED RODMAN 9311020083 931102 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ACTIVE VOICE CORP AN INITIAL OFFERING OF 13 MILLION COMMON SHARES VIA WILLIAM BLAIR & CO AND PIPER JAFFRAY INC BLOCKBUSTER ENTERTAINMENT CORP AN OFFERING OF 127 MILLION SHARES CELL GENESYS INC AN OFFERING OF 2000000 COMMON SHARES VIA CS FIRST BOSTON INVEMED ASSOCIATES INC AND OPPENHEIMER & CO CONNECTICUT POWER & LIGHT CO A UNIT OF NORTHEAST UTILITIES AN OFFERING OF 415000000 IN FIRST AND REFUNDING MORTGAGE BONDS AND PREFERRED STOCKS 9311020082 931102 BUSINESS BRIEF COMPTEK RESEARCH INC CONCERN POSTS 353000 LOSS FOR ITS FISCAL SECOND QUARTER COMPTEK RESEARCH INC BLAMING A MISJUDGMENT OF THE MARKET SAID IT HAD A NET LOSS OF 353000 OR SEVEN CENTS A SHARE IN ITS FISCAL SECOND QUARTER COMPARED WITH NET INCOME OF 132000 OR THREE CENTS A SHARE A YEAR EARLIER SALES FELL 82 TO 155 MILLION FROM 169 MILLION A YEAR EARLIER FOR THE QUARTER ENDED OCT 1 THE BUFFALO NY COMPANY ALSO SAID IT SUSPENDED ITS QUARTERLY DIVIDEND WHICH SHOULD SAVE ABOUT 700000 ANNUALLY ITS LATEST DIVIDEN PAYMENT WAS FOUR CENTS A SHARE SEPT 3 COMPTEK'S STOCK CLOSED AT 15375 DOWN 2125 OR 12 IN AMERICAN STOCK EXCHANGE TRADING THE LOSS WAS LARGELY THE RESULT OF AN OPERATING LOSS IN ITS COMMERCIAL SYSTEMS AND SERVICE SEGMENT WHICH INCLUDES WIRELESSRADIOFREQUENCYDATA COMMUNICATIONS MICROWAVE SYSTEMS AND CONTRACT MANUFACTURING CHRISTOPHER A HEAD VICE PRESIDENT SAID THE COMPANY GEARED UP FOR A SALES INCREASE THAT DIDN'T MATERIALIZE 9311020081 931102 WHO'S NEWS VONS PRESIDENT QUITS AS HE SEES NO ROAD TO THE NO 1 POSITION ARCADIA CALIF VONS COS SAID ITS PRESIDENT AND CHIEF OPERATING OFFICER DENNIS K ECK RESIGNED AFTER HE DETERMINED THAT HE WOULDN'T BE NAMED TO THE TOP POST WHEN I JOINED THE COMPANY I HAD SET FOR MYSELF A PERSONAL GOAL TO BECOME ITS CHIEF EXECUTIVE OFFICER WITHIN FOUR YEARS SINCE IT IS APPARENT THAT THIS CANNOT BE ACCOMPLISHED IT IS TIME TO MOVE ON MR ECK SAID IN A STATEMENT THE SUPERMARKET CHAIN'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ROGER E STANGELAND RECENTLY RESUMED HIS DUTIES ON A PARTTIME BASIS AFTER A SHORT ABSENCE FOR HEART BYPASS SURGERY MR ECK'S DEPARTURE ISN'T RELATED TO MR STANGELAND'S RETURN A SPOKESWOMAN SAID IN VIEW OF THESE DEVELOPMENTS THE EXECUTIVE COMMITTEE OF THE BOARD WILL WORK WITH THE COMPANY TO DEVELOP A MANAGEMENT SUCCESSION PLAN THE STATEMENT SAID MR STANGELAND 64 YEARS OLD HASN'T INDICATED WHEN HE PLANS TO RETIRE AND THERE IS NO MANDATORY RETIREMENT AGE THE SPOKESWOMAN SAID MR ECK 50 ALSO RESIGNED AS A DIRECTOR REDUCING THE BOARD TO 10 MEMBERS 9311020080 931102 GM AND TOYOTA'S JOINT VENTURE DETROIT GENERAL MOTORS CORP AND TOYOTA MOTOR CORP WON APPROVAL FROM THE FEDERAL TRADE COMMISSION TO CONTINUE THEIR CALIFORNIA JOINT VENTURE NEW UNITED MOTOR MANUFACTURING INC UNDER THE ORIGINAL FTC ORDER THE JOINTLY OWNED AUTOMOTIVE ASSEMBLY PLANT KNOWN AS NUMMI WAS SCHEDULED TO CEASE OPERATIONS IN DECEMBER 1996 IN JUNE GM AND TOYOTA PETITIONED THE FTC TO ALLOW THE OPERATION TO CONTINUE INDEFINITELY NUMMI PRODUCES THE CHEVROLET GEO PRIZM THE TOYOTA COROLLA AND THE TOYOTA COMPACT PICKUP TRUCKS AT ITS FREMONT CALIF PLANT 9311020079 931102 BUSINESS BRIEF WESTMORELAND COAL CO CALIFORNIA CONCERN ACQUIRES ENERGY UNIT FOR 57 MILLION WESTMORELAND COAL CO PHILADELPHIA SAID IT SOLD ITS WESTMORELAND ENERGY INC UNIT TO CALIFORNIA ENERGY CO OMAHA NEB FOR 57 MILLION WESTMORELAND ENERGY DEVELOPS OWNS AND MANAGES GENERAL PARTNERSHIP INTERESTS IN COGENERATION AND OTHER POWER PLANTS IN THE US AND ABROAD UNDER THE AGREEMENT SCHEDULED TO CLOSE BY THE END OF 1993 CALIFORNIA ENERGY ALSO AGREED TO INVEST A TOTAL OF 355 MILLION IN TWO WESTMORELAND COALPLANT PROJECTS IN NORTH CAROLINA DAVID L SOKOL CALIFORNIA ENERGY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THAT ANNUAL REVENUES ASSOCIATED WITH WESTMORELAND'S FACILITIES WHICH CONTROLS 233000 KILOWATTS OF CAPACITY WOULD TOTAL ABOUT 80 MILLION CALIFORNIA ENERGY WITH ABOUT 300000 KILOWATTS OF CAPACITY HAS CURRENT ANNUAL REVENUE OF ABOUT 135 MILLION 9311020078 931102 EUROPA CRUISES WINS CONTEST PENSACOLA FLA EUROPA CRUISES CORP SAID PRELIMINARY RESULTS SHOW THE COMPANYBACKED SLATE OF DIRECTORS WAS ELECTED BY SHAREHOLDERS DEFEATING AN ATTEMPT BY THE COMPANY'S FOUNDER AND FORMER CHAIRMAN TO OUST THE BOARD CHARLES S LIBERIS WHO RESIGNED AS CHAIRMAN LAST DECEMBER LED THE CAMPAIGN TO REPLACE THE CRUISE AND CASINO COMPANY'S BOARD HE AND THE COMPANY HAVE BEEN FEUDING ABOUT THE COMPANY'S DIRECTION MR LIBERIS SAID HE WILL VIGOROUSLY PURSUE APPROPRIATE ACTIONS TO CHALLENGE THE OUTCOME OF THE VOTE THE COMPANY SAID ITS SLATE OF DIRECTORS RECEIVED 65 OF THE 112 MILLION VOTES CAST 9311020077 931102 LEISURE & ARTS BOOKSHELF WEALTH AND BETRAYAL BY JOE QUEENAN DISCUSSING THE RISE OF THE NAZIS THE ENGLISH HISTORIAN AJP TAYLOR ONCE WARNED HIS COLLEAGUES ALWAYS TO REMEMBER THAT EVENTS THAT ARE NOW VERY FAR IN THE PAST WERE ONCE VERY FAR IN THE FUTURE THIS THOUGHT COMES TO MIND WHILE READING RON CHERNOW'S SPLENDID THE WARBURGS THE 20THCENTURY ODYSSEY OF A REMARKABLE JEWISH FAMILY RANDOM HOUSE 820 PAGES 30 WHICH IS LARGELY ABOUT THE REFUSAL OF THE WEALTHIEST AND MOST INFLUENTIAL GERMANJEWISH FAMILY TO BELIEVE THAT THE NAZIS WERE CAPABLE OF COMMITTING THE CRIMES WE NOW KNOW THEY WERE CAPABLE OF COMMITTING STUBBORNLY CLINGING TO THE ILLUSION THAT THE RISE OF ADOLF HITLER WAS MERELY ANOTHER CONVULSION IN GERMANY'S TRAUMATIC MODERN HISTORY THE HAMBURGBASED WARBURG FAMILY WATCHED HELPLESSLY AS A BANKING EMPIRE THAT HAD BEEN CAREFULLY CONSTRUCTED OVER THE FOUR PREVIOUS CENTURIES WAS SMASHED TO PIECES VIRTUALLY OVERNIGHT THE WARBURGS IS THUS THE LATEST RETELLING OF A DISASTER THAT HAS OCCURRED SO OFTEN IN JEWISH HISTORY THE TRAGEDY OF A MINORITY WITH GREAT WEALTH ALMOST COMPLETELY DIVORCED FROM REAL POLITICAL POWER YET THE FAMILY'S ENTHUSIASTIC ATTEMPTS TO BECOME INDISTINGUISHABLE FROM NONJEWISH GERMANS ONLY MADE THINGS WORSE FOR THEM TRACING THEIR LINEAGE BACK TO COURT JEW MONEYLENDERS OF THE 1500S THE 20THCENTURY WARBURGS WERE A HIGHLY ASSIMILATED PATRIOTIC CLAN WHO WERE HIGHLY ACTIVE IN GERMAN CULTURAL AND POLITICAL LIFE SEEKING TO AVOID THE MISTAKES OF THE ROTHSCHILDS WHO NEVER DEVELOPED A MAJOR PRESENCE ON WALL STREET THE FAMILY ENCOURAGED YOUNGER MEMBERS TO MAKE THEIR FORTUNES IN THE NEW WORLD LEADING TO VITAL MARRIAGES WITH THE SCHIFF AND LOEB FAMILIES BUT THEIR VERY EMPHASIS UPON ABANDONING THE GHETTO AND ESTABLISHING AN INTERNATIONAL BANKING EMPIRE PLAYED RIGHT INTO THE HANDS OF THEIR ENEMIES WRITES MR CHERNOW THEY SYMBOLIZED A MODERNITY THAT MANY GERMANS FOUND PROFOUNDLY THREATENING AND PREFERRED TO REGARD AS A FOREIGN GRAFT AN ALIEN PRESENCE AND NOT AN ORGANIC DEVELOPMENT OF THEIR OWN SOCIETY A LITTLE LATER HE ADDS ONE SHOULD NOTE THAT IT WAS WHEN JEWS EMERGED FROM THE GHETTO WHEN THEY SHED THEIR BEARDS AND BADGES AND BECAME INDISTINGUISHABLE FROM OTHER GERMANS THAT THE ANTISEMITIC MOVEMENT FIRST EMERGED WHAT DISTURBED THE GERMAN CHRISTIANS WAS THE JEW AS ALTER EGO NOT THE JEW AS OTHER FURTHER COMPLICATING MATTERS WAS THE STATESIDE SUCCESS OF PAUL WARBURG WHO HELPED FOUND THE FEDERAL RESERVE BOARD SERVED AS ONE OF ITS FIRST BOARD MEMBERS AND WAS THEN DENIED A SECOND TERM PRECISELY BECAUSE HE WAS A GERMANBORN BANKER WHOSE FATHER AND BROTHERS EXERCISED A VITAL ROLE IN FINANCING THE KAISER'S WAR MACHINE IT WAS PAUL'S SUCCESS THAT CONTRIBUTED TO AN INJURIOUS NEW MYTHOLOGY THE SPECTER OF A GLOBAL JEWISH CONSPIRACY IT'S WORTH NOTING THAT THE SPECTER OF A JEWISH BANKING CONSPIRACY DID NOT DIE OUT IN 1945 SCRATCH MOST ANY TRILATERAL COMMISSION CONSPIRACY THEORIST AND YOU'LL FIND A VIRULENT ANTISEMITE UNDERNEATH NAZI ACCUSATIONS OF TREASON WERE ESPECIALLY HORRIFYING TO A FAMILY THAT HAD ENJOYED INTIMATE RELATIONS WITH OTTO VON BISMARCK AND KAISER WILHELM II WHOSE MIGHTY FLEET WAS ASSEMBLED WITH FINANCING FROM THE WARBURGS ONE OF THE MOST HEARTRENDING MOMENTS IN THE WARBURGS OCCURS IN 1934 AFTER THE NAZIS HAVE BEGUN WIPING OUT GERMANJEWISH CIVILIZATION WHEN MAX WARBURG THE PATRIARCH OF THE CLAN INSTRUCTS HIS LAWYER TO WRITE AN ANGRY LETTER TO THE GESTAPO PROTESTING A MAGAZINE ARTICLE ACCUSING HIM OF STABBING HIS OWN COUNTRY IN THE BACK DURING THE VERSAILLES TREATY TALKS IN 1919 THOUGH THE DOMINANT THEME OF THE WARBURGS IS THE BETRAYAL OF ASSIMILATED JEWS BY A MIGHTY COUNTRY THEY HAD HELPED TO CREATE THIS IS NOT THE ONLY STORY MR CHERNOW HAS TO TELL A SKILLFUL WRITER WHO RECOGNIZES THE NECESSITY OF MODULATING HIS TONE IN A BOOK SO MASSIVE MR CHERNOW DOES A WONDERFUL JOB FLESHING OUT THE LIVES OF THE MAJOR CHARACTERS IN THIS FAMILY DRAMA HERE IS NE'ERDOWELL ABY WARBURG WHO ABANDONED BANKING FOR A MAJOR CAREER IN ART HISTORY DELIVERING A FIVEHOUR LECTURE ENTITLED WHY THE KING OF ENGLAND SITS IN THE POSITION OF NEPTUNE ON THE POUND NOTE HERE IS JIMMY WARBURG THE SWINGING BANKER LOSING HIS WIFE TO GEORGE GERSHWIN THEN SEEKING HELP FROM A FAMOUS PSYCHOANALYST ONLY TO FIND THAT HIS WIFE AND GERSHWIN WERE ALSO AMONG THE SHRINK'S PATIENTS AND HERE IS SIEGMUND WARBURG VALIANTLY STRIVING TO REVIVE THE FAMILY EMPIRE AFTER THE WAR THE SAME MAN WHO ONLY 20 YEARS EARLIER HAD DECEIVED HIMSELF INTO THINKING THAT NAZI VIGOR MIGHT BE A GOOD STIMULUS FOR DECADENT WEIMAR GERMANY THE GERMAN JEWS WERE A PEOPLE SHIPWRECKED BY HISTORY WRITES MR CHERNOW IN HIS OPENING SENTENCE ARGUABLY THE MOST PRODUCTIVE GROUP OF JEWS IN HISTORY THEY WERE ALSO IN MANY WAYS THE LEAST TYPICAL FEW GROUPS HAVE BEEN SO ADMIRED FOR THEIR ACHIEVEMENT OR SO MALIGNED FOR THEIR ATTITUDES PERSECUTED BY OTHER GERMANS AS TOO JEWISH THEY WERE OFTEN SCORNED BY OTHER JEWS AS TOO GERMAN THEIR EXISTENCE RESTED ON A TENUOUS ILLUSION OF ACCEPTANCE UNTIL THE NAZIS CAME ALONG AND TORE THAT DREAM TO TATTERS PEOPLE STILL PUZZLE OVER WHY THESE BRIGHT INDUSTRIOUS PEOPLE WERE SO BLIND TO A MORAL THREAT TO THEIR EXISTENCE IN FRUSTRATION SOME JEWS DENY THEM THE DIGNITY OF THEIR TRAGEDY THE WARBURGS GIVES IT BACK TO THEM 9311020076 931102 TECHNOLOGY BRIEF STANDARD REGISTER CO PRODUCT IS JOINTLY DEVELOPED WITH MACLEANHUNTER UNIT STANDARD REGISTER CO AND MACLEANHUNTER LTD'S DATA BUSINESS FORMS UNIT SAID THEY WILL LAUNCH IN JANUARY A PRODUCT DESIGNED TO HELP COMPANIES CONVERT TO THE USE OF ELECTRONIC DOCUMENTS RATHER THAN PAPER DOCUMENTS THE COMPANIES PROJECT SALES OF 100 MILLION OVER THE NEXT FIVE YEARS FOR THE JOINTLY DEVELOPED ELECTRONICDOCUMENT AND LIBRARY PRODUCT WHICH IS CALLED DOCUSTREAM THE COMPANIES TERMED THEIR RELATIONSHIP A STRATEGIC ALLIANCE STANDARD REGISTER A DAYTON OHIO PRODUCER OF BUSINESS FORMS AND FORMHANDLING EQUIPMENT IS TO BEGIN SELLING THE PRODUCT IN JANUARY DATA BUSINESS BRAMPTON ONTARIO BEGAN DISTRIBUTING DOCUSTREAM TO SALES REPRESENTATIVES EARLY LAST MONTH MACLEANHUNTER IS A TORONTOBASED DIVERSIFIED COMMUNICATIONS COMPANY 9311020075 931102 CORRECTIONS & AMPLIFICATIONS SPELLING ENTERTAINMENT INC'S FORMER CHIEF OPERATING OFFICER IS RONALD LIGHTSTONE IN YESTERDAY'S INDUSTRY FOCUS ARTICLE ABOUT INVESTING IN MEDIA AND COMMUNICATION COMPANIES MR LIGHTSTONE'S NAME WAS MISSTATED THE FILM HOWARDS END WAS DISTRIBUTED BY SONY CLASSICS A UNIT OF SONY CORP FRIDAY'S ADVERTISING COLUMN INCORRECTLY STATED THAT THE DISTRIBUTOR WAS MIRAMAX FILMS VICTOR CO OF JAPAN KNOWN AS JVC IS PREDICTING AN UNCONSOLIDATED PRETAX LOSS OF 25 BILLION YEN 2304 MILLION FOR THE FISCAL YEAR ENDING MARCH 31 IN AN ARTICLE YESTERDAY IT WAS INCORRECTLY REPORTED THAT THE COMPANY WAS PREDICTING A PRETAX PROFIT OF THAT AMOUNT FOR THE YEAR 9311020074 931102 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 3/16 HIGH 3 LOW 3 NEAR CLOSING BID 3 1/8 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 43 DAYS 308 44 TO 79 DAYS 328 80 TO 179 DAYS 330 180 TO 249 DAYS 333 250 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 316 60 DAYS 332 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 264 TWO MONTHS 271 THREE MONTHS 278 SIX MONTHS 293 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 307 ONE MONTH 331 THREE MONTHS 331 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 328 60 DAYS 324 90 DAYS 324 120 DAYS 324 150 DAYS 325 180 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 7/16 3 5/16 TWO MONTHS 3 7/16 3 5/16 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 7/16 THREE MONTHS 3 1/2 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 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 686 60 DAYS 693 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 684 60 DAYS 694 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 495 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 9311020073 931102 PC INVADES THE FBI BY JEREMY STONE BREATHES THERE A SOUL SO DEAD THAT HE OR SHE HAS NEVER PRIVATELY SPECULATED ON CULTURAL OR INTELLECTUAL DIFFERENCES BETWEEN WOMEN AND MEN OR BETWEEN VARIOUS ETHNIC OR RACIAL GROUPS IF SO HE OR SHE WILL HAVE NO TROUBLE IN THIS NEW WORLD OF POLITICAL CORRECTNESS GETTING A POSITION IN THE FEDERAL GOVERNMENT NO ONE ELSE WILL QUALIFY ANYONE WHO HAS EVER UTTERED A STATEMENT THAT COULD BE CONSTRUED AS INSENSITIVE TO ANY ONE OF AMERICA'S MINORITY GROUPS COULD NOW BE DISQUALIFIED FROM A GROWING NUMBER OF FEDERAL POSITIONS THIS UNSETTLING INFORMATION WAS DISCLOSED TO ME IN AN OCT 18 LETTER FROM THE FBI IN RESPONSE TO MY QUERY THE BUREAU CONFIRMED THAT OTHER AGENCIES ARE CHARGING THE FBI WITH THE RESPONSIBILITY TO ELICIT AND THOROUGHLY EXPLORE COMMENTS BEARING ON A CANDIDATE'S ABILITY TO BE FAIR AND FREE OF BIASES AGAINST ANY CLASS OF CITIZENS THE FBI IS NOT JUST LOOKING INTO RACIST OR DISCRIMINATORY ACTIONS BUT ELICITING AND EXPLORING COMMENTS A PRACTICE THAT STARTED IN 1965 REGARDING CANDIDATES FOR JUDGE IS NOW STANDARD IN CONNECTION WITH PRESIDENTIAL APPOINTMENTS AND OTHER FEDERAL POSITIONS POTENTIALLY INFLUENCING POLICY OR PERSONNEL DECISIONS FOR EXAMPLE THE FBI THIS MONTH FOR THE FIRST TIME IN DOZENS OF SUCH INQUIRIES TO ME ASKED SUCH QUESTIONS ABOUT A FRIEND OF MINE WHOSE DUTIES HAVE NOTHING TO DO WITH PERSONNEL AND WHO OBVIOUSLY CANNOT BECOME A BLACKMAILABLE SECURITY RISK FOR PREJUDICE IN A SEPARATE INSTANCE A LEGISLATIVE STAFFER KNOWN TO ME WITH NO SUBORDINATES AND HENCE NO PERSONNEL DECISIONS TO MAKE RECENTLY UNDERWENT HIS PERIODIC FIVE YEAR CLEARANCE REVIEW HE IMMEDIATELY HEARD FROM HIS NEIGHBORS THAT THE FBI WAS ASKING WHETHER HE HAS EVER TOLD RACIST JOKES OR SAID ANYTHING THAT INDICATED PREJUDICE TALK ABOUT BIG BROTHER DO WE WANT ANY SECURITY APPARATUS OR EVEN OFFICES OF PERSONNEL MANAGEMENT ASKING OUR ACQUAINTANCES WHAT WE THINK ABOUT AFFIRMATIVE ACTION WHAT JOKES WE TELL AND WHICH WE FIND FUNNY BLACKBALLING WOULD BE EASY AND MISUNDERSTANDINGS INEVITABLE AFTER ALL WE SEE EVERY DAY OUR SOCIETY'S MOST SOPHISTICATED POLITICAL OBSERVERS WILDLY DIVIDED AS TO WHETHER SOME PUBLIC STATEMENT WAS OR WAS NOT DEFAMATORY ILLMEANING PREJUDICIAL APPROPRIATE OR HUMOROUS UNDER SUCH CIRCUMSTANCES SHOULD WE LEAVE THE ASSESSMENT OF PRIVATE STATEMENTS TO EITHER FBI FIELD AGENTS OR TO HIRING OFFICERS WHO MAY BE OF THE GENDER OR ETHNIC GROUP AT ISSUE AND WHO MAY HAVE PREJUDICIAL SCORES TO SETTLE THE FACT THAT THE FBI IN GENERAL AND THE GOVERNMENT IN PARTICULAR IS ENGAGED IN THIS PROCEDURE WILL HAVE TWO IMMEDIATELY CHILLING EFFECTS ONE ON PRIVATE SPEECH BY INDIVIDUALS THROUGHOUT THEIR LIFETIME AND ANOTHER ON THE WILLINGNESS OF PERSONS TO SEEK GOVERNMENT SERVICE MORE GENERALLY ALL WHO LOVE FREEDOM OF SPEECH MUST BE APPALLED AT WHAT IS HAPPENING IN OUR SOCIETY GREAT UNIVERSITIES HOLD SEMINARS ON FREE SPEECH IN A DIVERSE SOCIETY AS IF FREE SPEECH IN A DIVERSE SOCIETY SHOULD BE MORE RESTRICTED THAN FREE SPEECH IN A HOMOGENEOUS SOCIETY BUT AT LEAST THESE APOLOGISTS FOR POLITICAL CORRECTNESS ARE TALKING ABOUT PUBLIC SPEECH HERE THE ISSUE IS GOVERNMENT INVESTIGATIONS OF PRIVATE SPEECH TO ONE'S CLOSEST FRIENDS AND NEIGHBORS WILL WE BECOME A SOCIETY AS IN SOVIET RUSSIA WHERE CERTAIN THINGS CANNOT BE CONVEYED EVEN TO ONE'S CLOSEST FRIENDS SHALL WE RULE WOMEN DISQUALIFIED FOR SUPERVISORY POSITIONS IF THEY HAVE EVER TOLD THEIR FRIENDS THAT MEN ARE AFFLICTED WITH TESTOSTERONE POISONING WHAT ABOUT BLACKS WHO HAVE COMPLAINED THAT WHITES WERE PREJUDICED AGAINST THEM THIS COULD AFTER ALL BE INTERPRETED TO MEAN THAT SUCH WOMEN AND SUCH BLACKS WOULD NOT TREAT THE OTHER GROUPS FAIRLY IN THE WORKPLACE THIS KIND OF INVESTIGATION OF PRIVATE COMMENT MAY BE ARGUABLE FOR NOMINEES TO THE FEDERAL JUDICIARY WHERE THE PRACTICE EVIDENTLY STARTED JUDGES ARE PERSONS OF UNCHECKED POWERS WHOSE POSITION PERMITS THEM TO ACT OUT THEIR PREJUDICES AGAINST NUMEROUS INDIVIDUALS EASILY AND OVER LONG PERIODS BUT THOSE WHO SEEK MOST PUBLIC JOBS HAVE NO SUCH POWER IF THEY DO ENGAGE IN HIRING AFFIRMATIVE ACTION ALREADY REQUIRES THEM OFTEN WITH QUOTAS AND OTHER OBJECTIVE CHECKS TO HIRE MINORITIES AND TO TREAT THEM FAIRLY EVEN IF THEY SECRETLY HARBOR PREJUDICE OR JUST HATE THE WHOLE AFFIRMATIVE ACTION SYSTEM ON POLITICAL GROUNDS THEREFORE THESE ISSUES CAN SAFELY BE LEFT TO OVERSIGHT BY OFFICES OF PERSONNEL MANAGEMENT AND THE POSTEMPLOYMENT SUPERVISION OF HIGHERLEVEL SUPERVISORS AND SINCE VIRTUALLY EVERYONE HAS PREJUDICES OF ONE KIND OR ANOTHER WHY WASTE TIME TRYING TO ELICIT EXPLORE AND DOCUMENT PREJUDICED PRIVATE SPEECH NOT LEAST IMPORTANT CONGRESS AND THE PRESS SHOULD DETERMINE HOW MUCH OF THE FBI'S BACKLOG IN SECURITY INVESTIGATIONS OR OVERTIME PAY FOR RETIRED AGENTS IS BEING GENERATED BY ISSUES OF POLITICAL CORRECTNESS TOO MANY APPOINTEES ARE BEING HELD UP FOR TOO LONG ALREADY A REAL COST TO OUR GOVERNMENT WITHOUT ADDING FALSE DUTIES TO THE FBI AGENDA LET'S GIVE THE FBI A BREAK LET IT CONCENTRATE ON CATCHING SPIES TERRORISTS AND BANK ROBBERS SECURITY AND NOT JOB SUITABILITY IS WHAT WE NEED THE FBI FOR AND WHAT IT WANTS TO DO CHECKING UP ON OFFCOLOR JOKES IS MORE THAN FBI AGENTS OR INVESTIGATORS FROM OTHER AGENCIES SHOULD BE REQUIRED TO ENDURE MR STONE IS PRESIDENT OF THE FEDERATION OF AMERICAN SCIENTISTS IN WASHINGTON 9311020072 931102 STAINED IMAGE POLLUTION CONTROL FIRM CLEANS UP BUT LEAVES A TRAIL OF ALLEGATIONS THEY INCLUDE FUDGING BOOKS STIFFING SUBCONTRACTORS AND MISHANDLING WASTES TRYING TO SELL THE COMPANY BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL ANCHORAGE ALASKA BY MANY MEASURES MARTECH USA INC IS ONE COMPANY THAT REALLY HAS CLEANED UP IN THE BOOMING POLLUTIONCONTROL BUSINESS ANALYSTS ESTIMATE THE GOVERNMENT AND PRIVATE INDUSTRY WILL SPEND MORE THAN 200 BILLION ON ENVIRONMENTAL CLEANUP IN THE US ALONE OVER THE NEXT 20 YEARS MARTECH STRUCK IT RICH SOPPING UP SLUDGE FROM PRINCE WILLIAM SOUND'S ROCKY BEACHES AFTER THE EXXON VALDEZ OIL SPILL IT HELPED KEEP CRUDE OUT OF SAUDI ARABIA'S DESALINIZATION PLANTS DURING THE PERSIAN GULF WAR IT WAS ONE OF THE FIRST US CLEANUP COMPANIES TO WADE INTO THE TOXIC STEW OF EASTERN EUROPE'S FORMER SOVIET MILITARY BASES AND IT HAS LANDED DOZENS OF CONTRACTS TO SCRUB DOWN AMERICA'S OWN CONTAMINATED MILITARY BASES WITH A FIVEYEAR AVERAGE RETURN ON EQUITY OF 59 MARTECH RANKED AS FOURTHBEST SMALL COMPANY IN AMERICA ON A FORBES MAGAZINE LIST LAST YEAR GLENN CUTLER AN INVESTMENT ADVISER WHO FORMERLY HEADED THE PROGRESSIVE ENVIRONMENTAL FUND A MUTUAL FUND SAYS MARTECH STOCK COULD BE WORTH 12 TO 17 A SHARE BECAUSE OF ITS POTENTIAL EARNING POWER WELL ABOVE ITS CLOSING PRICE ON THE NEW YORK STOCK EXCHANGE MONDAY OF 825 A SHARE MARTECH'S CHIEF EXECUTIVE AND BIGGEST SHAREHOLDER A BARRELCHESTED FORMER OIL FIELD ROUGHNECK NAMED BEN C TISDALE HAS BECOME A MULTIMILLIONAIRE ENABLING HIM TO INDULGE A FONDNESS FOR FUR COATS DIAMOND RINGS AND A SILVER ROLLSROYCE THE ONLY ROLLS IN ALASKA HE LIKES TO SAY HE STANDS TO BECOME RICHER MARTECH PUT ITSELF UP FOR SALE IN SEPTEMBER AND AT CURRENT STOCK PRICES MR TISDALE'S 491 STAKE IS WORTH ABOUT 413 MILLION BUT THERE IS ONE MESS THAT MARTECH AND MR TISDALE HAVE NOT BEEN ABLE TO CLEAN UP BENEATH THE SURFACE OF THIS SEEMING SUCCESS STORY IS A POOL OF ALLEGATIONS OF FRAUD NEGLIGENCE AND ENVIRONMENTAL CRIME MARTECH HAS BEEN UNDER INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION FOR POSSIBLE ACCOUNTING IRREGULARITIES THE ENVIRONMENTAL PROTECTION AGENCY HAS SUED IT IN US DISTRICT COURT IN ANCHORAGE ALASKA ACCUSING IT OF BOTCHING AN ASBESTOS CLEANUP SEVERAL STATE AGENCIES THE NAVAL CRIMINAL INVESTIGATIVE SERVICE THE ARMY CRIMINAL INVESTIGATION DEPARTMENT OTHER MILITARY AUTHORITIES AND AT LEAST TWO US ATTORNEYS' OFFICES ARE PROBING ALLEGATIONS OF FRAUD FAILING TO PAY SUBCONTRACTORS OR ILLEGALLY DUMPING HAZARDOUS WASTE MR TISDALE DECLINED TO BE INTERVIEWED IN WRITTEN RESPONSES TO QUESTIONS HE DENIES THAT MARTECH HAS DONE ANYTHING WRONG AND DESCRIBES THE ACCUSATIONS AS BASELESS ALLEGATIONS MAINLY FROM DISGRUNTLED EMPLOYEES REGARDING THE SEC INQUIRY MR TISDALE DECLINES TO COMMENT ON THE STATUS OF THE PROBE AS DOES AN SEC ENFORCEMENT OFFICIAL MARTECH FIRST DISCLOSED THE INQUIRY IN A PUBLIC SEC FILING IN SEPTEMBER 1992 IN THAT AND OTHER SEC FILINGS MARTECH DENIES ANY WRONGDOING MR TISDALE DECLINES TO COMMENT ON ANY MILITARY INVESTIGATIONS HE SAYS THE COMPANY IS INVOLVED IN VARIOUS DISPUTED MATTERS WITH THE GOVERNMENT AND IS IN NEGOTIATIONS WITH IT HE ACKNOWLEDGES THAT A GRAND JURY IS INVESTIGATING MARTECH BUT DECLINES TO ELABORATE HE DECLINES FURTHER COMMENT ON ANY OTHER INVESTIGATIONS BY STATE OR FEDERAL AGENCIES MARTECH STRENUOUSLY DENIES THE EPA'S ALLEGATIONS THAT IT MISHANDLED THE ASBESTOS CLEANUP IN ALASKA THE AGENCY AND THE COMPANY HAVE BEEN TALKING ABOUT A SETTLEMENT OF THE CHARGES BUT HAVEN'T REACHED A FINAL AGREEMENT SAYS AN EPA SPOKESMAN TO MANY WHO KNOW THE COMPANY MARTECH IS A REFLECTION OF ITS 57YEAROLD CHIEF ACQUAINTANCES SAY MR TISDALE DELIGHTS IN SPINNING TALES ABOUT HIS TOUGH UPBRINGING IN LOUISIANA'S BAYOU COUNTRY AND HOW HE ESCAPED A TROUBLED HOME BY LANDING A FOOTBALL SCHOLARSHIP HE OFTEN REMINISCES ABOUT HIS EXPLOITS AS A MAINSTAY OF LOUISIANA STATE UNIVERSITY'S FAMED CHINESE BANDITS DEFENSIVE TEAMS OF THE LATE 1950S GOOD TRAINING HE OBSERVES FOR THE YEARS HE LATER SPENT CLAWING HIS WAY OUT OF THE LOUISIANA OIL PATCH AMONG HIS FRIENDS ARE DOROTHY HAMILL THE OLYMPICGOLDMEDALIST ICE SKATER HE HELPED HER FINANCE HER RECENT PURCHASE OF THE ICE CAPADES THE TWO ARE VERY CLOSE SAYS MS HAMILL'S SPOKESMAN FORMER ALASKA GOV WILLIAM SHEFFIELD A MARTECH DIRECTOR ADDS BEN IS A HARDNOSED BUSINESSMAN BUT HE HAS A HEART OF GOLD MARTECH CRITICS SAY THERE IS ANOTHER SIDE TO MR TISDALE FOR ONE THING LSU RECORDS SHOW HE LEFT SCHOOL AFTER TWO YEARS AND LSU OFFICIALS SAY THEY CAN FIND NO INDICATION HE PLAYED FOOTBALL THE MAIN ARCHITECT OF THE CHINESE BANDITS LSU'S FORMER LONGTIME HEAD COACH CHARLIE MCCLENDON RECALLS MR TISDALE AS SOMEONE WHO WAS ON THE FOOTBALL TEAM ONLY BRIEFLY AND HARDLY EVER PLAYED NUMEROUS FORMER MARTECH EMPLOYEES SAY MR TISDALE IS PRONE TO PROFANITYLACED TIRADES THAT HAVE SOMETIMES REDUCED WORKERS TO TEARS A CALIFORNIA STATE JUDGE IN JANUARY AWARDED A FORMER MARTECH EMPLOYEE 160000 IN A SEXUALDISCRIMINATION CASE SHE BROUGHT AGAINST THE COMPANY THE JUDGE WROTE IN HIS FINAL RULING THAT MR TISDALE HAD MADE EXTREMELY INAPPROPRIATE SEXUAL ADVANCES ON AT LEAST THREE FEMALE MARTECH EMPLOYEES CHARGES MR TISDALE DENIES AND THAT MARTECH'S SACRAMENTO OFFICE HAD A CORPORATE MILIEU OF SEXUAL BIAS FRIENDS AND SOME OF HIS FORMER ATTORNEYS SAY MR TISDALE OFTEN TALKS OF THE TIME HE GRABBED A PLASTIC FOAM CUP AND DEVOURED IT DURING A DEPOSITION IT IS AN EXAMPLE MR TISDALE CITES OF THE TOUGH SOMETIMES UNORTHODOX TACTICS HE HAS USED TO BUILD HIS BUSINESS SUCCESS BUT SOME APPARENT MARTECH BUSINESS TACTICS ARE COMING UNDER FIRE SEVERAL FORMER MARTECH EXECUTIVES SAY MR TISDALE OPENLY TALKS ABOUT HOW STIFFING SUBCONTRACTORS IS JUST ANOTHER CORPORATE COSTCUTTING TOOL SUBCONTRACTORS ON NUMEROUS MARTECH JOBS ACROSS THE COUNTRY TELL OF BEING STRUNG ALONG AND STALLED WHEN THEY TRIED TO COLLECT PAYMENT ONE OF THEM IS KIM DIESEL WHOSE FAMILYOWNED BUSINESS BEC INC IS AN ELECTRICAL CONTRACTOR THAT SAYS IT IS STILL OWED 104000 FOR WORK ON A MARTECH PROJECT IN HAWAII MARTECH HAS STIFFED US PLAIN AND SIMPLE MS DIESEL SAYS THEIR REPUTATION AMONG CONTRACTORS IS TERRIBLE AND NOW WE KNOW WHY WE WERE FOOLS TO WORK WITH THEM WE'LL NEVER WORK FOR THEM AGAIN MARTECH HAS DECLINED TO COMMENT BUT IN A RECENT LETTER TO BEC IT DENIES IT HAS VIOLATED ANY CONTRACTUAL OBLIGATIONS SUCH PAYMENT DISPUTES ARE NOW CAUSING MARTECH SOME TROUBLE GARY HORNE A MILITARY CONTRACTING OFFICER AT THE MARINE CORPS' CAMP LEJEUNE IN NORTH CAROLINA CONFIRMS THAT THE NAVAL CRIMINAL INVESTIGATIVE SERVICE HAS UNDERTAKEN A FRAUD INVESTIGATION CONCERNING WHETHER MARTECH FALSELY CERTIFIED THAT IT HAD PAID SUBCONTRACTORS ON A CAMP LEJEUNE JOB NAVAL AUTHORITIES CONFIRM THEY ARE LOOKING INTO SIMILAR ALLEGATIONS ON MARTECH CONTRACTS AT BARBER'S POINT IN HAWAII THE ARMY CONFIRMS THAT ITS CRIMINAL INVESTIGATION UNIT IS LOOKING INTO A MARTECH JOB AT RADFORD ARMY AMMUNITION PLANT IN VIRGINIA WHERE SUBCONTRACTORS COMPLAIN OF NOT BEING PAID ON TIME OR AT ALL JUST THREE WEEKS AGO JAMES A MOROCCO AN ARMY CORPS OF ENGINEERS OFFICER OVERSEEING A MARTECH CLEANUP JOB AT A MISSILE SITE IN RHODE ISLAND SENT THE COMPANY A LETTER WARNING IT TO RESOLVE COMPLAINTS OF NONPAYMENT FROM SUBCONTRACTORS ON THAT PROJECT OR HE WOULD TURN THE MATTER OVER TO ARMY INVESTIGATORS FOR POSSIBLE FRAUD CHARGES FOUR FORMER MARTECH LAW FIRMS HAVE SUED THE COMPANY IN CALIFORNIA AND ALASKA COURTS TO RECOVER HUNDREDS OF THOUSANDS OF DOLLARS IN DISPUTED LEGAL FEES ONE FIRM SAYS IT IS OWED MORE THAN 500000 THEN THERE IS MARTECH'S PATTERN OF QUESTIONABLE ENVIRONMENTAL PRACTICES ALSO REFLECTED IN LEGAL ACTIONS AND INTERVIEWS WITH INVESTIGATORS FORMER EMPLOYEES AND FORMER CLIENTS IN THE PRIVATE SECTOR IN LOUISIANA THE STATE'S DEPARTMENT OF ENVIRONMENTAL QUALITY SHUT DOWN MARTECH OPERATIONS AT A CHEVRON CORP OILPIT CLEANUP SITE BECAUSE MARTECH HADN'T OBTAINED LEGALLY REQUIRED HAZARDOUSWASTE PERMITS CHEVRON ENGINEERS ALSO SAY MARTECH FOULED UP THE OILPIT JOB SPREADING CONTAMINATED WASTE OVER AN AREA MORE THAN TWICE THE SIZE OF THE ORIGINAL CLEANUP SITE AT EDWARDS AIR FORCE BASE IN CALIFORNIA MARTECH NEGLIGENCE RESULTED IN A PUNCTURED JETFUEL LINE IN OCTOBER 1992 CAUSING A 6000GALLON SPILL THAT CONTAMINATED AN AREA ACCORDING TO AN AIR FORCE PERFORMANCE REVIEW ISSUED LAST AUGUST IN THAT REVIEW AIR FORCE OFFICIALS BLASTED MARTECH FOR AMONG OTHER THINGS FAILURE TO PROVIDE PROTECTIVE GEAR FOR EMPLOYEES WORKING IN POSSIBLY CONTAMINATED AREAS AND HANDLING SPILLED JET FUEL IN AN UNSAFE AND ENVIRONMENTALLY UNSOUND MANNER FORMER MARTECH EMPLOYEES AND EYEWITNESSES SAY MARTECH PUNCTURED ANOTHER FUEL LINE LAST YEAR AT BEALE AIR FORCE BASE ALSO IN CALIFORNIA SPILLING AT LEAST 9000 GALLONS OF JET FUEL AND CONTAMINATING TONS OF SOIL IN HAWAII VERNON HOO AN INDUSTRIAL HYGIENIST MARTECH HIRED TO OVERSEE ENVIRONMENTAL AND SAFETY COMPLIANCE SAYS HE WITNESSED MARTECH RUN ROUGHSHOD OVER ENVIRONMENTAL LAWS AND REGULATIONS ON CONTRACTS AT BARBER'S POINT AND PEARL HARBOR IN ONE INSTANCE DESCRIBED BY MR HOO AND CONFIRMED BY NAVY OFFICIALS MARTECH CUT A HOLE IN AN OLD FUEL TANK AND DIDN'T COVER UP THE HOLE PROPERLY A HEAVY RAIN SLUICED TOXINS OUT OF THE TANK AND CREATED A POISON LAKE A HUNDRED FEET ACROSS AND 20 FEET DEEP IN SOME SPOTS THE POND HAD TO BE PUMPED AND TONS OF PREVIOUSLY UNCONTAMINATED EARTH HAD TO BE REMOVED BEALE AIR FORCE BASE OFFICIALS DECLINE TO COMMENT ON MARTECH MATTERS IN HIS WRITTEN RESPONSES MR TISDALE DECLINES TO COMMENT ON CRITICISMS OF MARTECH WORK ON THE CHEVRON JOB HE DECLINES TO COMMENT ON ALLEGED PROBLEMS AT EDWARDS AND BEALE AIR FORCE BASES MR TISDALE ALSO DENIES ANY WRONGDOING IN HAWAII AND SUGGESTS THE NAVY ISN'T DISSATISFIED WITH MARTECH IN HAWAII BECAUSE IT HAS AWARDED THE COMPANY SEVERAL CONTRACTS SINCE THE ALLEGED PROBLEMS IN HAWAII OCCURRED THE NAVY SEES IT DIFFERENTLY JAMES PUTNAM HEAD OF NAVY CONTRACTS FOR HAWAII AND THE REST OF THE OPERATING AREA OF THE PACIFIC FLEET SAYS IN AN INTERVIEW THAT THE NAVY HAS HAD VERY SERIOUS PROBLEMS WITH MARTECH FOR ONE THING MARTECH HAS PROBLEMS PAYING SUBCONTRACTORS HE SAYS ON SEPT 22 THE NAVY DISQUALIFIED MARTECH FROM BIDDING ON A PROJECT IN GUAM BECAUSE OF WHAT MR PUTNAM TERMS SERIOUS PAST PERFORMANCE PROBLEMS RELATED TO THE QUALITY OF MARTECH'S WORK AS WELL AS ITS SPOTTY PAYMENT RECORD STAN SASAKI THE NAVY'S CONSTRUCTION CHIEF FOR THE PACIFIC REGION CONFIRMS THAT THE NAVY ALSO IS PROBING REPORTS OF POOR WORK AND SLOW PAYMENT ON AN ONGOING PROJECT AT KANEOHE MARINE CORPS AIR STATION IN HAWAII WHERE CONTRACTORS COMPLAIN BITTERLY ABOUT MARTECH'S SLOPPY PERFORMANCE AND ITS FAILURE TO PAY BILLS MR PUTNAM SAYS THAT OF NINE FINISHED MARTECH MILITARY JOBS ACROSS THE COUNTRY RECENTLY REVIEWED BY HIS OFFICE THREE HAD BEEN CLASSIFIED AS UNSATISFACTORY BY THE MILITARY AN EXTRAORDINARY RATE OF FAILURE HE SAYS ONE SUCH FAILURE IS DESCRIBED IN A GENERAL ACCOUNTING OFFICE REPORT ISSUED IN FEBRUARY 1992 THAT CITES AN INTERNAL NAVY REVIEW CHARACTERIZING MARTECH'S WORK ON ONE HAWAII CONTRACT THIS WAY POOR MANAGEMENT POOR QUALITY OF WORK THREE MONTHS BEHIND SCHEDULE LOTS OF REWORK MARTECH'S HANDLING OF HAZARDOUS WASTE FROM A JOB IN PUERTO RICO MAY HAVE BROUGHT THE COMPANY AFOUL OF STATE OFFICIALS IN SOUTH CAROLINA IN LATE 1990 GE CARIBE A GENERAL ELECTRIC CO UNIT HIRED MARTECH TO CLEAN OUT WASTE PONDS THAT CONTAINED CYANIDE AMONG OTHER TOXINS MARTECH WAS HAVING TROUBLE FINDING A HOME FOR THE WASTES WHICH WOULD HAVE TO BE STORED IN SPECIALLY EQUIPPED HAZARDOUSWASTE DUMPS PRESSED FOR TIME AND BEHIND SCHEDULE MARTECH VICE PRESIDENT RANDY SHEPHERD WHO HEADED THE SACRAMENTO OFFICE AT THE TIME ALLEGEDLY DOCTORED A LAB REPORT DESCRIBING THE CYANIDE LEVEL SO MARTECH COULD DISPOSE OF THE WASTES FROM THE PUERTO RICAN JOB QUICKLY AND MORE CHEAPLY ACCORDING TO FORMER MARTECH EMPLOYEES WILLIAM RAPP A FORMER MARTECH OPERATIONS MANAGER GAVE A DEPOSITION IN FALL 1992 IN CONNECTION WITH A LAWSUIT FILED IN THE US DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO MR RAPP HAS SINCE BEEN DISMISSED AS A DEFENDANT IN THAT CASE IN WHICH A GROUP OF FORMER MARTECH EMPLOYEES WERE CHARGED WITH SLANDER OR OTHER OFFENSES HOWEVER DURING HIS TESTIMONY ACCORDING TO SEVERAL PEOPLE FAMILIAR WITH THE DEPOSITION MR RAPP SAID HE SAW MR SHEPHERD BLOT OUT THE LAB RESULTS AND RUN THE REPORT THROUGH A PHOTOCOPIER SEVERAL TIMES MR RAPP DECLINES TO COMMENT RAUL CAMACHO A FORMER TECHNICIAN FOR MARTECH WHO WAS ON THE PUERTO RICO JOB SAYS IN AN INTERVIEW THAT HE OVERHEARD A MARTECH MANAGER JAMES BENNETT AND MR SHEPHERD OPENLY DISCUSSING THE DOCTORED REPORT IN SEVERAL PHONE CONVERSATIONS HE ALSO SAYS HE SAW BOTH THE ORIGINAL LAB REPORT AND SEVERAL ALTERED VERSIONS AS THEY FLEW BACK AND FORTH OVER A FAX MACHINE THE ORIGINAL SHOWED SIGNIFICANT LEVELS OF CYANIDE AND THE ALTERED REPORTS SHOWED NONE SAYS MR CAMACHO WHO WAS FIRED FROM MARTECH FOR REASONS THAT HE SAYS WERE NEVER EXPLAINED TO HIM IN AN INTERVIEW MR SHEPHERD SAYS HE NEVER ALTERED ANY LAB REPORTS MR BENNETT DIDN'T RETURN PHONE CALLS THE WASTE ENDED UP AT A LAIDLAW CORP FACILITY IN PINEWOOD SC LAIDLAW OFFICIALS DECLINE TO COMMENT HUDSON WALLER AN INVESTIGATOR FOR THE STATE'S ENVIRONMENTAL DEPARTMENT CONFIRMS THAT HIS OFFICE AND A FEDERAL GRAND JURY ARE INVESTIGATING THE MATTER BUT DECLINES FURTHER COMMENT THE STATE OF CALIFORNIA IS INVOLVED IN LAWSUITS WITH MARTECH OVER A JOB KNOWN AS JIBBOOM MARTECH WAS HIRED BY THE STATE TO CLEAN UP AN ABANDONED POWER PLANT ON STATEOWNED LAND AFTER BIDDING 896758 ON THE JOB IT EVENTUALLY BILLED THE STATE 45 MILLION MR TISDALE SAYS THE PROJECT WENT FAR BEYOND THE ORIGINAL CONTRACT BUT THE STATE REFUSES TO PAY AND THE TWO SIDES HAVE SUED EACH OTHER AT JIBBOOM MARTECH ALLEGEDLY BILLED THE STATE FOR AMONG OTHER THINGS EQUIPMENT THAT NEVER WORKED AND WORK THAT HAD TO BE REDONE BECAUSE OF MARTECH FOULUPS ACCORDING TO COMPLAINTS FILED BY THE STATE WITH AN ADMINISTRATIVE LAW JUDGE IN SACRAMENTO AND ACCORDING TO INTERVIEWS WITH FORMER MARTECH EMPLOYEES AND CONSULTANTS MARTECH DENIES THE ALLEGATIONS MARTECH'S SUBCONTRACTOR PROBLEMS COMPLICATED MATTERS THE JIBBOOM JOB WAS DELAYED AND COSTS INCREASED BECAUSE MARTECH ALLEGEDLY HAD TROUBLE FINDING A DUMP FOR JIBBOOM WASTES AT THE TIME MARTECH WAS BARRED FROM THE MOST CONVENIENT DUMP A CHEMICAL WASTE MANAGEMENT INC FACILITY BECAUSE IT OWED CHEMWASTE MONEY THE STATE ALLEGES IN ITS COMPLAINT CHEMWASTE DECLINES TO COMMENT ON THE JIBBOOM CASE BUT AS RECENTLY AS SEVERAL WEEKS AGO THE COMPANY WAS REFUSING TO DO BUSINESS WITH MARTECH BECAUSE MARTECH OWED CHEMWASTE MONEY ACCORDING TO A CHEMWASTE SPOKESMAN CHEMWASTE OFFICIALS SAY MARTECH IS NOW CURRENT ON PAYMENTS THEY DECLINE ANY FURTHER COMMENT OTHER ALLEGATIONS SURROUND MARTECH'S OPERATIONS IN EASTERN EUROPE MARTECH AGGRESSIVELY COURTED WASTE CLEANUP BUSINESS THERE VERY AGGRESSIVELY FORMER MARTECH EMPLOYEES SAY IN WHAT WAS THEN CZECHOSLOVAKIA MR CAMACHO SAYS HE AND ANOTHER MARTECH WORKER WERE TOLD BY DONALD LITCHFIELD WHO WAS MARTECH'S HEAD OF EUROPEAN OPERATIONS TO GUARD TWO PACKAGES MR LITCHFIELD TOLD THE TWO MEN THAT THE PACKAGES CONTAINED 100000 SHARES OF MARTECH STOCK FOR DISTRIBUTION TO POTENTIAL CZECH CUSTOMERS MR CAMACHO SAYS MR LITCHFIELD DENIES THIS HAPPENED MR TISDALE HIMSELF HAS FLOWN FREQUENTLY ON THE CORPORATE JET TO EASTERN EUROPE TO CHAT WITH GOVERNMENT OFFICIALS AND POTENTIAL PRIVATESECTOR CLIENTS IN THE EARLY 1990S HE REPEATEDLY TOLD GOVERNMENT OFFICIALS THAT THE US CONGRESS WAS ABOUT TO DISH UP LARGE SUMS FOR EASTERN EUROPEAN CLEANUP ENCOURAGING THEM TO HIRE MARTECH AND LET US TAXPAYERS FOOT THE BILL SAYS A FORMER MARTECH OFFICIAL PRESENT IN MANY MEETINGS WITH MR TISDALE AND THE EASTERN EUROPEANS IN AUGUST 1990 THE STATE DEPARTMENT WARNED MR TISDALE IN WRITING NOT TO TELL EASTERN EUROPEAN GOVERNMENTS THAT US MONEY WOULD BE AVAILABLE FOR MARTECH TO UNDERTAKE ENVIRONMENTAL CLEANUP WORK MR TISDALE DENIES THAT HE OR MARTECH EVER MADE ANY SUCH REPRESENTATIONS A STATE DEPARTMENT SPOKESMAN DECLINES COMMENT ON THE CIRCUMSTANCES BUT SAYS IT IS RARE FOR THE DEPARTMENT TO ISSUE SUCH WARNINGS TO COMPANIES ESPECIALLY NEW YORK STOCK EXCHANGE CONCERNS MARTECH LANDED CLEANUP WORK IN HUNGARY AMONG OTHER EAST EUROPEAN LANDS BUT THE HUNGARIAN GOVERNMENT EVENTUALLY CUT OFF PAYMENTS IN PART ON THE GROUND THAT MARTECH DIDN'T PAY LOCAL CONTRACTORS AT ABOUT THE SAME TIME CONGRESS KILLED LEGISLATION THAT WOULD HAVE PUT UP HUNDREDS OF MILLIONS OF DOLLARS FOR ENVIRONMENTAL CLEANUP OVERSEAS THE HUNGARIAN PRESS ACCUSED MARTECH OF MISLEADING THE GOVERNMENT ABOUT THE LIKELIHOOD OF US FUNDING OF STIFFING LOCAL CONTRACTORS AND OF BOTCHING CLEANUP JOBS NEWSPAPERS CARRIED PHOTOS FOR EXAMPLE OF A MARTECH BACKHOE THEY SAID HAD BLUNDERED INTO ONE TOWN'S ELECTRICAL GRID MR TISDALE CERTAINLY ISN'T PRESENTING A SITTING TARGET FOR HIS CRITICS THERE IS THE ATTEMPTED SALE OF THE COMPANY WHICH MR TISDALE SAYS STEMS FROM HIS FRUSTRATION ABOUT ITS STOCK PRICE MARTECH WENT PUBLIC IN DECEMBER 1989 AT 10 A SHARE PEAKED AT MORE THAN 17 DURING THE GULF WAR AND SINCE HAS BEEN STUCK AROUND 7 OR 8 A SHARE HE ALSO IS PURSUING THE SLANDER SUIT IN FEDERAL COURT IN SAN FRANCISCO THE SUIT TARGETS A GROUP THAT INCLUDES A CALIFORNIA SUBCONTRACTOR NAMED ROBERT SMITH AND THE EMPLOYEE WHO WON A CIVIL JUDGMENT OF SEXUAL DISCRIMINATION AGAINST MARTECH WHICH MARTECH IS APPEALING MARTECH ALSO HAS FILED A SECOND SLANDER SUIT ALSO IN FEDERAL COURT IN SAN FRANCISCO SOLELY AGAINST MR SMITH BOTH SLANDER CASES ARE BEING HEARD BY JUDGE FERN SMITH DESPITE THE NUMEROUS INVESTIGATIONS AT LEAST ONE DISQUALIFICATION FROM BIDDING ON A MILITARY CONTRACT FOR PERFORMANCE PROBLEMS AND OTHER COMPLAINTS ABOUT ITS MILITARY WORK MARTECH CONTINUES TO GET ADDITIONAL MILITARY JOBS EARLIER THIS YEAR IT WON TWO CONTRACTS TOTALLING ABOUT 60 MILLION AT ALASKA'S EIELSON AIR FORCE BASE BUT THE COMPANY'S PROBLEMS MAY BE CLOSING IN ON IT NOW MILITARY INVESTIGATORS CONFIRM EIELSON OFFICIALS RECENTLY HAVE BEEN LOOKING INTO POSSIBLE IRREGULARITIES ON SOME OF THAT MARTECH WORK TOO IF ANY OF THE PENDING MILITARY INVESTIGATIONS SHOULD LEAD TO FRAUD CONVICTIONS MARTECH COULD BE BARRED FROM SUCH WORK IN THE FUTURE AT LEAST TEMPORARILY A GROWING NUMBER OF SUBCONTRACTORS SUPPLIERS AND LARGER CLEANUP COMPANIES ACROSS THE COUNTRY SAY THEY ARE RELUCTANT TO WORK WITH MARTECH BECAUSE OF BAD EXPERIENCES WITH THE COMPANY AND A FEDERAL COURT IN HOUSTON RECENTLY HIT MR TISDALE AND A FORMER PARTNER WITH A 11 MILLION JUDGMENT FOR BREACHING THE CONTRACT UNDER WHICH THEY ACQUIRED MARTECH IN THE 1970S MR TISDALE AND HIS FORMER PARTNER ARE APPEALING THAT RULING 9311020071 931102 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY OCTOBER 20 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9311020070 931102 BUSINESS BRIEF PARKER HANNIFIN CORP FIRM SAYS EUROPE HOLDS KEY TO MEETING PROFIT ESTIMATES PARKER HANNIFIN CORP IS EXPERIENCING STRONG SALES AND EARNINGS GAINS IN THE US BUT EUROPEAN ECONOMIES WILL HAVE TO IMPROVE IF THE COMPANY IS TO MEET ANALYSTS' EARNINGS EXPECTATIONS DUANE E COLLINS PRESIDENT SAID IN AN INTERVIEW THE MAKER OF HYDRAULIC PARTS AND MOTION CONTROL PRODUCTS IS MORE COMFORTABLE TOWARD THE LOWER END OF THE 170TO2ASHARE RANGE OF ESTIMATES FOR THE YEAR ENDING JUNE 30 1994 MR COLLINS SAID IN FISCAL 1993 PARKER EARNED 651 MILLION OR 134 A SHARE ON SALES OF 249 BILLION THERE'S NO EVIDENCE YET OF ANY IMPROVEMENT IN THE GERMAN ECONOMY MR COLLINS SAID ADDING THAT PARKER'S MANAGEMENT DOESN'T EXPECT A MAJOR CHANGE IN GERMANY DURING THE NEXT SIX MONTHS A RECOVERY IN HEAVY TRUCKS FARM MACHINERY AND CONSTRUCTION EQUIPMENT IS BOOSTING SALES AND EARNINGS OF THE COMPANY'S NORTH AMERICAN INDUSTRIAL PRODUCTS BUSINESSES OFFICALS SAID NORTH AMERICAN INDUSTRIAL PRODUCTS ACCOUNT FOR MORE THAN HALF OF THE COMPANY'S SALES SALES OF THE LARGEST GROUP FLUID CONNECTORS ARE UP NEARLY 15 FROM A YEAR AGO SAID DONALD A ZITO GROUP PRESIDENT 9311020069 931102 TECHNOLOGY BRIEF BAXTER INTERNATIONAL INC CARDIACASSIST PUMP IS USED SUCCESSFULLY IN HEART PATIENT BAXTER INTERNATIONAL INC DEERFIELD ILL SAID A CARDIACASSIST PUMP MADE BY ITS NOVACOR DIVISION HAS BEEN SUCCESSFULLY USED FOR THE FIRST TIME IN A US HEART TRANSPLANT PATIENT THE MACHINE KNOWN AS A WEARABLE LEFT VENTRICULAR ASSIST SYSTEM IS AN INVESTIGATIONAL DEVICE DESIGNED FOR TEMPORARY USE IN PATIENTS AWAITING HEART TRANSPLANTS THE DEVICE IS IMPLANTED IN THE BODY BUT CONNECTED TO A POWER SOURCE THAT CAN BE WORN ON A BELT OR IN A SHOULDER BAG IN ADDITION TO BAXTER'S OAKLAND CALIFBASED NOVACOR UNIT THERMO CARDIOSYSTEMS INC OF WOBURN MASS PRODUCES SUCH A DEVICE THAT HAS BEEN USED IN HUMANS THE MACHINES ASSIST THE HEART FOR WEEKS OR MONTHS WHILE PATIENTS AWAIT DONOR HEARTS OF WHICH ONLY ABOUT 2000 ARE AVAILABLE FOR TRANSPLANT EACH YEAR THE TRANSPLANT SURGERY TOOK PLACE AT STANFORD UNIVERSITY MEDICAL CENTER AND THE 33YEAROLD PATIENT A SCIENCEFICTION WRITER FROM SAN LEANDRO CALIF RECENTLY LEFT THE HOSPITAL NOVACOR SAID IT IS DOING ANIMAL STUDIES IN WHICH THE DEVICE IS BEING USED FOR LONGERTERM CHRONIC PURPOSES THE GOAL IN TIME WOULD BE FOR THE DEVICE TO BE TOTALLY IMPLANTED AND USED FOR YEARS IN PATIENTS WITH BADLY DAMAGED HEARTS 9311020068 931102 BUSINESS BRIEF EDISTO RESOURCES CORP COMPANY SELLS TUNISIA UNIT WEIGHS SMALL ACQUISITIONS EDISTO RESOURCES CORP SAID IT PLANNED TO SELL A SMALL OILSERVICE SUBSIDIARY AND PROPERTIES OFF THE COAST OF TUNISIA AND CONCENTRATE ON INCREASING THE SIZE OF ITS DOMESTIC OIL AND GAS BUSINESSES GARY PITTMAN EDISTO VICE PRESIDENT SAID THE DALLASBASED COMPANY WOULD CONSIDER ACQUISITIONS OF OIL AND GAS PROPERTIES IN THE RANGE OF 25 MILLION TO 100 MILLION THE COMPANY ALSO SAID IT CLOSED A 30 MILLION REVOLVING LINE OF CREDIT WITH BANK ONE TEXAS NA AND USED PART OF THE LINE TO RETIRE 93 MILLION OF DEBT FROM CHEMICAL BANK AFTER EMERGING FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS IN JUNE EDISTO SHUFFLED ITS MANAGEMENT AND NAMED A NEW CHAIRMAN MICHAEL Y MCGOVERN IN JULY SINCE THEN THE COMPANY REVIEWED ITS ASSETS AND DECIDED TO FOCUS ON DOMESTIC OIL AND GAS 9311020067 931102 WHO'S NEWS LUCASARTS ENTERTAINMENT CO LUCASARTS ENTERTAINMENT CO SAN RAFAEL CALIF RANDY KOMISAR WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER THE COMPANY WHOSE CHAIRMAN IS FILMMAKER GEORGE LUCAS IS ONE OF THE THREE UNITS IN MR LUCAS'S GROUP OF CLOSELY HELD ENTERTAINMENT AND MULTIMEDIA COMPANIES MR KOMISAR 39 YEARS OLD WAS VICE PRESIDENT OF BUSINESS OPERATIONS AND CHIEF FINANCIAL OFFICER AT GO CORP A CLOSELY HELD SOFTWARE CONCERN IN FOSTER CITY CALIF LUCASARTS WHICH HAD BEEN OPERATING WITHOUT A PRESIDENT MAKES ENTERTAINMENT AND EDUCATIONAL SOFTWARE 9311020066 931102 BUSINESS BRIEF POTOMAC ELECTRIC POWER CO COLUMBIA GAS JOINT VENTURE TO PROVIDE STORAGE PIPELINE POTOMAC ELECTRIC POWER CO SAID IT FORMED A JOINT VENTURE WITH COLUMBIA GAS SYSTEM INC WILMINGTON DEL TO PROVIDE STORAGE AND PIPELINE FACILITIES FOR OTHER REGIONAL GAS COMPANIES PEPCO BASED IN WASHINGTON DC SAID THE 5050 PARTNERSHIP BETWEEN UNITS OF THE TWO COMPANIES WOULD ENABLE LOCAL GAS DISTRIBUTION COMPANIES TO STORE LIQUEFIED NATURAL GAS AT COLUMBIA GAS TERMINALS IN COVE POINT MD AND TO USE A PIPELINE FROM COVE POINT TO LOUDON VA THE COMPANIES ARE SEEKING FEDERAL ENERGY REGULATORY COMMISSION APPROVAL FOR THE VENTURE UNDER TERMS OF THE AGREEMENT COLUMBIA LNG CORP A COLUMBIA GAS UNIT WILL PROVIDE THE TERMINAL AND PIPELINE FACILITIES IN EXCHANGE FOR EQUITY INTEREST IN THE JOINT VENTURE PEPCO'S UNIT WOULD INVEST UP TO 25 MILLION IN EQUITY AND DEBT 9311020065 931102 BUSINESS BRIEF CIRCA PHARMACEUTICALS INC THIRDQUARTER NET IS POSTED COMPARED WITH LOSS IN 1992 CIRCA PHARMACEUTICALS INC REPORTED THIRDQUARTER EARNINGS COMPARED WITH A LOSS A YEAR EARLIER REFLECTING SHARPLY HIGHER SALES AFTER REGULATORS IN APRIL CLEARED THE COMPANY TO MANUFACTURE PRODUCTS AGAIN AND GAINS FROM THE SALE OF STOCK IN ANOTHER GENERIC DRUG COMPANY CIRCA BASED IN COPIAGUE NY REPORTED THIRDQUARTER EARNINGS OF 67 MILLION OR 30 CENTS A SHARE COMPARED WITH A LOSS OF 51 MILLION OR 23 CENTS A SHARE A YEAR EARLIER WHEN THE COMPANY WASN'T ALLOWED TO MANUFACTURE PRODUCTS BECAUSE OF SERIOUS REGULATORY PROBLEMS CIRCA REPORTED THIRDQUARTER SALES OF 1 MILLION COMPARED WITH 11063 A YEAR EARLIER THE RESULTS INCLUDED A 68 MILLION GAIN ON THE SALE OF 394000 SHARES OF ANOTHER GENERIC DRUG COMPANY MARSAM PHARMACEUTICALS INC CIRCA STOCK ROSE 125 CENTS OR 1 TO CLOSE AT 12625 A SHARE IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9311020064 931102 BUSINESS BRIEF COMPUTER SCIENCES CORP TENYEAR 300 MILLION PACT SET WITH AUSTRALIAN INSURER COMPUTER SCIENCES CORP SAID IT SIGNED A 300 MILLION AGREEMENT TO PROVIDE COMPUTER SERVICES TO AUSTRALIAN MUTUAL PROVIDENT SOCIETY A LARGE INSURANCE COMPANY BASED IN SYDNEY AUSTRALIA THE 10YEAR PACT ALSO INCLUDES THE ACQUISITION OF A COMPUTERSERVICES UNIT FROM THE INSURER THE PRICE WASN'T DISCLOSED THE UNIT HAS 1100 EMPLOYEES AND ANNUAL REVENUE OF 80 MILLION SHARES OF COMPUTER SCIENCES EL SEGUNDO CALIF JUMPED 31 ON THE NEWS GAINING 2875 TO CLOSE AT 9475 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE 30 MILLION ANNUAL VALUE OF THE AGREEMENT IS LESS THAN HALF THE 70 MILLION ANNUAL VALUE ANTICIPATED A YEAR AGO WHEN A MEMORANDUM OF UNDERSTANDING WAS SIGNED COMPUTER SCIENCES SAID THE INSURER SUBSEQUENTLY DECIDED TO KEEP INTERNAL CONTROL OVER MORE OF ITS COMPUTER OPERATIONS 9311020063 931102 BUSINESS BRIEF HOUSTON INDUSTRIES INC FIRM INTERESTED' IN SELLING UP TO 50 OF KBLCOM UNIT HOUSTON INDUSTRIES INC SAID IT IS INTERESTED IN SELLING AS MUCH AS A 50 STAKE IN ITS KBLCOM INC CABLE OPERATIONS TO STRATEGIC PARTNERS THAT INCLUDE TELEPHONE COMPANIES HOUSTONBASED KBLCOM SERVES ABOUT 588000 CABLE HOMES IN TEXAS CALIFORNIA MINNESOTA AND OREGON THE COMPANY ALSO SERVES SOME 900000 SUBSCRIBERS IN SEVEN STATES INCLUDING A LARGE CHUNK OF NEW YORK CITY THROUGH A 50 JOINT VENTURE WITH TIME WARNER INC THE CABLE OPERATIONS ARE A CASHFLOW ENGINE FOR THE UTILITY COMPANY CRANKING OUT SOME 180 MILLION IN CASH FLOW IN 1992 THAT PRICE VALUES HOUSTON INDUSTRIES' ENTIRE CABLE HOLDINGS AT ABOUT 216 BILLION BASED ON MULTIPLES OF 12 TIMES CASH FLOW USED IN RECENT CABLE TV DEALS LIKE MANY CABLE OPERATORS NOW SHOPPING FOR TELEPHONECOMPANY PARTNERS KBLCOM WOULD BENEFIT GREATLY FROM SUCH DEEPPOCKETED PARTNERS WHICH COULD HELP PAY THE HUGE CAPITAL COSTS NEEDED TO DELIVER THE NEXT GENERATION OF VIDEO SERVICES AND ENTERTAINMENT 9311020062 931102 BUSINESS BRIEF CLEVETRUST REALTY INVESTORS WESTLAKE OHIO FIRM ALTERS ITS STRATEGIC BUSINESS PLAN CLEVETRUST REALTY INVESTORS WESTLAKE OHIO SAID IT IS CHANGING ITS STRATEGIC BUSINESS PLAN AND WILL INVEST THE PROCEEDS FROM A PROPOSED OFFERING IN SUBURBAN OFFICE BUILDINGS IN THE MIDWEST AND SOUTHWEST ADDITIONALLY THE COMPANY PLANS TO SELL ITS SHOPPING CENTERS AND APARTMENT COMPLEX PROCEEDS WILL BE INVESTED IN SUBURBAN OFFICE PROPERTIES THE TRUST HAS FILED PRELIMINARY DOCUMENTATION WITH THE SECURITIES AND EXCHANGE COMMISSION TO ISSUE COMMON STOCK SUBSCRIPTION RIGHTS TO SHAREHOLDERS THE TIMING HASN'T BEEN FINALIZED BUT IT IS EXPECTED TO BE EFFECTIVE IN THE FIRST HALF OF FISCAL 1994 WHICH BEGAN OCT THE COMPANY ALSO INCREASED ITS QUARTERLY DIVIDEND TO FOUR CENTS A SHARE FROM THREE CENTS A SHARE PAYABLE JAN 28 TO STOCK OF RECORD JAN 14 THE COMPANY CITED ITS IMPROVING FUNDS FROM OPERATIONS FOR ITS DECISION TO BOOST THE DIVIDEND IN NASDAQ STOCK MARKET TRADING YESTERDAY CLEVETRUST FELL 25 CENTS OR 65 TO 3625 9311020061 931102 MARKETING & MEDIA ADVERTISING KNOCK KNOCK WHO'S THERE THE SAME OLD FUNNY AD AGAIN BY KEVIN GOLDMAN THE SLANT IS DECIDEDLY HUMOROUS IN A NEW COMMERCIAL FOR A SONY VIDEO GAME A BOY TRAPPED TALKING TO TWO ELDERLY AUNTS AT A FAMILY REUNION SUDDENLY BECOMES THE MOUNTAINCLIMBING TERRORISTFIGHTING HERO PLAYED BY SYLVESTER STALLONE IN THE MOVIE CLIFFHANGER THE AD ENDS AS THE YOUNGSTER RETURNS TO REALITY SWINGING FROM A CHANDELIER AND TOSSING A DINNER ROLL AS IF IT WERE A HAND GRENADE WILL THE AD SELL LOTS OF VIDEO GAMES USING HUMOR IN ADVERTISING IS A DARING UNDERTAKING AND MADISON AVENUE IS SHARPLY DIVIDED OVER THE EFFECTIVENESS OF SUCH COMMERCIALS CLIFF FREEMAN WHO WAS PART THE CREATIVE TEAM FOR THE SONY COMMERCIAL THE LITTLE CAESARS PIZZA PIZZA ADS AND THE WHERE'S THE BEEF CAMPAIGN FOR WENDY'S CONTENDS THAT HUMOR IS A GREAT WAY TO BOUND OUT OF THE STARTING GATE WHEN YOU MAKE PEOPLE LAUGH AND THEY FEEL GOOD AFTER SEEING THE COMMERCIAL THEY LIKE THE ASSOCIATION WITH THE PRODUCT HE BELONGS TO THE SCHOOL OF ADVERTISING THAT BELIEVES ADS FILLED WITH YUKS ARE EFFECTIVE LONGER BECAUSE CONSUMERS CAN TOLERATE A WELLEXECUTED JOKE AGAIN AND AGAIN BUT OTHER ADVERTISING EXPERTS TAKE THE OPPOSITE VIEW AND BELIEVE HUMOROUS ADS GET OLD MUCH SOONER THAN OTHER FORMATS BECAUSE ONCE THE VIEWER GETS THE JOKE THE AD BECOMES BORING IN FACT NEITHER VIEW IS CORRECT ACCORDING TO A NEW STUDY THE STUDY SCHEDULED TO BE RELEASED THIS WEEK BY RESEARCH SYSTEMS CORP IN EVANSVILLE IND CONCLUDES THAT HUMOROUS ADS DON'T WEAR OUT ANY FASTER OR SLOWER THAN OTHER ADS MARK GLEASON SENIOR VICE PRESIDENT OF RESEARCH SYSTEMS SAYS HUMOROUS ADS BECOME PLAYED OUT AT THE SAME RATE AS ANY OTHER TYPE OF AD WHETHER THE COMMERCIAL USES COMPARATIVE TECHNIQUES A CELEBRITY SPOKESMAN OR ANOTHER APPROACH ACCORDING TO MR GLEASON AN ADVERTISEMENT'S EFFECTIVENESS ON AVERAGE WEARS OUT WITHIN EIGHT WEEKS THE STUDY IS BASED ON 100 ADVERTISEMENTS ALTHOUGH MR GLEASON DECLINES TO BE SPECIFIC CITING CLIENT CONFIDENTIALITY AGREEMENTS THE STUDY MAY GENERATE SOME LAUGHS OF ITS OWN DAVID VADEHRA PRESIDENT OF VIDEO STORYBOARD TESTS WHICH ALSO STUDIES THE EFFECTIVENESS OF ADVERTISING SAYS HIS FIRM'S RESEARCH SHOWS THAT HUMOROUS ADS LOSE THEIR EFFECTIVENESS FASTER THAN OTHER ADS THE FIRST TIME THE AD IS FUNNY HE SAYS THE SECOND TIME THE AD IS ACCEPTABLE AND THE THIRD TIME IT'S A BORE WHILE A SINGLE HUMOROUS AD MAY GET OLD QUICK A HUMOROUS CAMPAIGN MAY NOT FOR INSTANCE THE PIZZA CHAIN LITTLE CAESARS HAS BEEN RUNNING ADS RELYING ON SIGHT GAGS FOR ABOUT FIVE YEARS THERE HAVE BEEN MORE THAN 35 DIFFERENT ADS SINCE 1987 SAYS MR FREEMAN WHOSE AGENCY CLIFF FREEMAN & PARTNERS HANDLES THE ACCOUNT MR FREEMAN'S WHERE'S THE BEEF CAMPAIGN FOR WENDY'S IN THE MID1980S DIDN'T WEAR OUT AT ALL SAY EXPERTS THAT IS AN EXAMPLE OF USING HUMOR TO SELL THE PRODUCT AND NOT GETTING IN THE WAY SAYS GARY STIBEL FOUNDER AND PRINCIPAL OF THE WESTPORT CONN MEDIA CONSULTING COMPANY NEW ENGLAND CONSULTING BUT ALL TOO OFTEN HE SAYS HUMOR OVERSHADOWS THE PRODUCT AND THAT'S A SERIOUS PROBLEM HE CITES THE ADS FOR AMERICAN ISUZU MOTORS IN WHICH AN OILY CHARACTER NAMED JOE ISUZU TOLD LIES ABOUT THE CARS SUBTITLES WERE USED TO INFORM THE VIEWER ABOUT THE FIBS THE SERIES OF SPOTS WAS WIDELY PRAISED AS BORDERING ON HILARIOUS BUT JOE ISUZU REMINDED YOU OF EVERYTHING YOU WANTED TO FORGET ABOUT A CAR SALESMAN SAYS MR STIBEL THE HUMOR GOT IN THE WAY ALL YOU REMEMBERED WAS THAT CAR SALESMEN WERE DISHONEST AND THE CAR SALESMAN YOU REMEMBERED MOST WAS FROM ISUZU WHAT ISN'T OPEN FOR DEBATE SAY EXPERTS AND CONSULTANTS IS THAT HUMOR IS BEING USED LESS ALONG MADISON AVENUE THAN EVER BEFORE THERE IS MORE USE OF BRASS TACKS SAYS MR GLEASON MAYBE IT'S JUST THE ATMOSPHERE OF THE 1990S WITH BUSINESSES SAYING THAT YOU CAN'T MAKE A JOKE AT THE EXPENSE OF A PRODUCT BUT HUMOR CAN BE HIGHLY EFFECTIVE AND AT TIMES IS THE ONLY WAY TO BREAK THROUGH THE CLUTTER SAYS MR FREEMAN QUITE OFTEN WE ATTRACT CLIENTS WHO ARE NUMBER TWO OR THREE IN THEIR CATEGORIES WHO ARE BEING OUTSPENT BY THEIR FORMIDABLE RIVALS SO WE USE HUMOR AND IT GETS ATTENTION SOMETIMES THOUGH A LONGRUNNING SINGLE CAMPAIGN NEEDS TO CHANGE COURSE TO MAINTAIN INTEREST SAYS MR GLEASON TAKE FOR INSTANCE THE EVEREADY ENERGIZER BUNNY WHICH JUST KEEPS GOING AND GOING AND GOING THE CAMPAIGN CREATED BY CHIAT/DAY FOR THE RALSTON PURINA UNIT IS FOUR YEARS OLD IT JUST SEEMS LONGER AND APPARENTLY NEEDED SOME FIDDLING IN NEW SPOTS A SERIES OF DASTARDLY ENEMIES CONSPIRE TO GET THE BUNNY'S BATTERY COULD THIS BE THE END OF THE BUNNY AND THESE COMMERCIALS AT LAST A SPOKESMAN FOR CHIAT/DAY SAYS IT IS SAFE TO ASSUME THE BUNNY WILL CONTINUE ON AND WHO IS TO SAY A LONGRUNNING HUMOROUS CAMPAIGN ISN'T EFFECTIVE AFTER ALL IT'S ACTUALLY QUITE SIMPLE SAYS MR STIBEL IF VIEWERS LAUGH WITH YOU SUCH AS LITTLE CEASARS YOU CAN BE IN IT FOR THE LONG HAUL IT'S WHEN THEY LAUGH AT YOU LIKE ISUZU THAT YOU'RE IN TROUBLE TOYOTA MOTOR CORP DENIED IT IS STARTING OR EVEN CONTEMPLATING A MOVE TO OPEN ITS ROSTER OF AD AGENCIES TO A SHOP OUTSIDE THE SAATCHI & SAATCHI CO FAMILY TOYOTA MADE THE DENIAL AFTER A FRONT PAGE STORY IN ADWEEK MAGAZINE NAMED IT AS THE CLIENT THAT HAS BEEN ANONYMOUSLY SCOPING OUT AGENCIES FOR A 90 MILLION AUTOMOTIVE ASSIGNMENT MADISON AVENUE HAS BEEN ABUZZ ABOUT THE MYSTERY CLIENT SINCE EARLY OCTOBER WHEN SIX AD AGENCIES WERE INVITED TO SUBMIT THEIR AUTOMOTIVE CREDENTIALS TO A NEW YORK CONSULTANT WORKING ON BEHALF OF AN UNNAMED CLIENT WITH AN UNIDENTIFIED 90 MILLION ACCOUNT SPECULATION ABOUT THE CLIENT'S IDENTITY HAS COVERED VIRTUALLY EVERY ASIAN AUTO MANUFACTURER THAT ADVERTISES IN THE US CURRENTLY TOYOTA SPLITS ITS ESTIMATED 500 MILLION IN ANNUAL US AD SPENDING BETWEEN TWO SAATCHI & SAATCHI AGENCIES SAATCHI & SAATCHI ADVERTISING WHICH HANDLES TOYOTA ADS AND TEAM ONE ADVERTISING WHICH HANDLES LEXUS ADS THE ADWEEK STORY SPECULATED THAT TOYOTA MIGHT BE SEARCHING FOR A THIRD SHOP TO SHARE IN THE BIG BILLINGS DONALD GILBERT THE NEW YORK CONSULTANT WHO ACCORDING TO ADWEEK IS CONDUCTING THE SEARCH SAID THE EFFORT IS OFF AT LEAST FOR NOW WE'RE NOT DOING ANYTHING FURTHER AT THIS POINT HE SAID I DON'T EVEN KNOW THE TOYOTA PEOPLE CRAIG REISS ADWEEK EDITOR IN CHIEF SAID WE'RE FIRM AND CONFIDENT WITH THE STORY TV GUIDE NEWS CORP'S TV GUIDE WHICH HIRED CHIAT/DAY TWO YEARS AGO TO CREATE A HIGHPROFILE 20 MILLION TELEVISION AD CAMPAIGN HAS PULLED MOST OF ITS ADVERTISING WORK INHOUSE PATRICK PURCELL PRESIDENT AND CHIEF EXECUTIVE OF NEWS AMERICA PUBLISHING THE NEWS CORP UNIT WHICH OVERSEES TV GUIDE SAID CHIAT RETAINS A BRAINSTORMING AND CONSULTING RELATIONSHIP WITH THE CLIENT HE SAID PIZZA HUT PEPSICO'S PIZZA HUT UNIT SAID IT IS LOOKING FOR A SECOND AGENCY TO CREATE A CAMPAIGN AIMED AT CHILDREN OMNICOM GROUP'S BBDO HANDLES MOST OF THE PIZZA CHAIN'S BIG ACCOUNT WHO'S NEWS OMNICOM GROUP'S DDB NEEDHAM NAMED VICE CHAIRMAN JOHN BRADSTOCK TO THE POST OF PRESIDENT OF US AND CANADIAN OPERATIONS MR BRADSTOCK RETAINS HIS ROLE AS PRESIDENT OF GTE FOCUS THE SEPARATE UNIT SET UP TO SERVICE DDB'S BIG GTE ACCOUNT JOHN BERNBACH WHO HAD BEEN WORLDWIDE PRESIDENT AT DDB WAS NAMED VICE CHAIRMAN OVERSEEING ACQUISITIONS AND NEW TECHNOLOGY 9311020060 931102 TECHNOLOGY BRIEF RESPIRONICS INC COMPANY STOPS PRODUCING SELLING BAGEASY RESUSCITATOR RESPIRONICS INC MURRYSVILLE PA SAID IT STOPPED MAKING AND SELLING ITS BAGEASY DISPOSABLE MANUAL RESUSCITATOR AND RECALLED THE PRODUCT AFTER FINDING THE POTENTIAL FOR MALFUNCTIONS RESPIRONICS' DISCOVERY CAME AFTER A FOOD AND DRUG ADMINISTRATION REPORT SAID CERTAIN SYSTEMS PROCEDURES AND DOCUMENTATION IN THE MANUFACTURING PROCESS SHOULD BE MODIFIED BUT THE COMPANY SAID IT RECEIVED NO REPORTS OF MALFUNCTIONS SINCE THE BAGEASY'S INTRODUCTION FIVE YEARS AGO RESPIRONICS SAID THE MOVES WILL COST ABOUT 2 MILLION OR 15 CENTS A SHARE WHICH WILL BE REFLECTED IN THE FISCAL FIRST QUARTER ENDED SEPT 30 INCLUDING THE CHARGE RESPIRONICS EXPECTS TO REPORT EARNINGS PER SHARE RANGING FROM NINE CENTS TO 11 CENTS IN THE YEAREARLIER PERIOD THE COMPANY EARNED 16 MILLION OR 18 CENTS A SHARE RESPIRONICS SAID THE PRODUCT CONTRIBUTED 8 OF ITS 693 MILLION IN SALES IN THE YEAR ENDED JUNE 30 AND DID NOT MAKE SIGNIFICANT CONTRIBUTIONS TO PROFITABILITY THE COMPANY MADE THE ANNOUNCEMENT DURING THE TRADING SESSION ON THE NASDAQ STOCK MARKET YESTERDAY RESPIRONICS CLOSED AT 1825 DOWN 125 OR 64 9311020059 931102 BUSINESS BRIEF DUTY FREE INTERNATIONAL INC COMPANY SEES NET MISSING FORECASTS IN FISCAL 3RD PERIOD DUTY FREE INTERNATIONAL INC SAID IT PREDICTS ITS FISCAL THIRDQUARTER EARNINGS WILL BE BELOW EXPECTATIONS BECAUSE OF WEAK SALES IN ITS USCANADIAN BORDER SHOPS DUTY FREE OPERATES DUTYFREE STORES ALONG US BORDERS IN INTERNATIONAL AIRPORTS AND ON SHIPS THE NORTH BORDER DIVISION ONE OF THE COMPANY'S BIGGEST CONTRIBUTES ABOUT 30 OF DUTY FREE'S SALES SHOULD TRENDS CONTINUE THE RIDGEFIELD CONN COMPANY ESTIMATED PERSHARE EARNINGS IN THE FISCAL THIRD QUARTER ENDING OCT 31 WILL BE BETWEEN 29 CENTS AND 32 CENTS BELOW ANALYSTS' EXPECTATIONS OF 34 CENTS AND 40 CENTS A SHARE AS REPORTED BY ZACKS INVESTMENT RESEARCH FOR THE FISCAL YEAR ENDING JAN 31 1994 THE COMPANY PREDICTED EARNINGS WILL BE BETWEEN BETWEEN 103 AND 108 A SHARE WITHIN ANALYSTS' EXPECTATIONS OF BETWEEN 102 AND 115 A SHARE BUT BELOW THE MEAN OF 109 A SHARE ACCORDING TO ZACKS 9311020058 931102 WALMART SETS SIGHTS ON BIG CUSTOMERS IN BID TO IMPROVE WAREHOUSECLUB UNIT BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL WALMART STORES INC IN A MAJOR EFFORT TO BOOST ITS UNDERPERFORMING SAM'S CLUB WAREHOUSE STORES SAID IT IS GOING AFTER BIG CORPORATE AND INSTITUTIONAL CUSTOMERS WALMART SAID SAM'S CLUB IS THE FIRST MEMBERSHIP WAREHOUSE STORE TO TARGET THE CORPORATEPROCUREMENT MARKET AND THE BENTONVILLE ARK COMPANY CONTENDED THAT THIS WOULD GIVE THE CHAIN AN EDGE IN THE CONSOLIDATING WAREHOUSECLUB INDUSTRY UNTIL NOW WAREHOUSE CHAINS HAVE MOSTLY SERVICED SMALL BUSINESSES OFFERING DEEP DISCOUNTS FOR BULK PURCHASES OF EVERYTHING FROM OFFICE SUPPLIES TO FOOD TO GAIN A FOOTHOLD IN THIS NEW MARKET WALMART SAID IT IS LAUNCHING THE SAM'S CLUB DIRECT PROGRAM WHICH PROVIDES CREDIT PURCHASEORDER TRACKING AND BILLING SERVICES IN AN EFFORT TO MAKE IT EASIER FOR LARGE CORPORATIONS GOVERNMENT AGENCIES SCHOOLS AND INSTITUTIONS TO BUY FROM ITS WAREHOUSE CLUBS THE PROGRAM USING A SYSTEM DEVELOPED BY GE CAPITAL THE RETAILING AND CREDIT ARM OF GENERAL ELECTRIC CORP WILL ALLOW CERTAIN MEMBERS TO BUY ON CREDIT FOR THE FIRST TIME IN ESSENCE A GE CAPITAL SPOKESMAN SAID IT WILL PROVIDE SAM'S CLUBS WITH A PRIVATELABEL CREDITCARD SERVICE THAT WILL BE OPERATED THROUGH GE CAPITAL'S DATAPROCESSING CENTERS ANALYSTS SAID THAT PROVIDING CREDIT ALSO SHOULD BOOST SALES TO CURRENT SMALLBUSINESS CUSTOMERS WHICH WILL SHOP MORE OFTEN IF THEY DON'T HAVE TO PAY IN CASH THAT WOULD BE GOOD NEWS FOR SAM'S CLUBS WHICH SAW SALES AT STORES OPEN A YEAR OR MORE DROP 4 IN SEPTEMBER THE THIRD CONSECUTIVE MONTH OF DECLINE BUT SAM'S CLUB ISN'T ALONE IN ITS EFFORTS THE DISCOUNT CHAIN FACES COMPETITION FROM SOCALLED CATEGORY KILLERS SUCH AS OFFICE DEPOT INC WHICH OPERATES A CHAIN OF HUGE OFFICESUPPLY STORES AND ALREADY PROVIDES SIMILAR CREDIT COLLECTION AND PURCHASEORDER TRACKING SERVICES IN FACT OFFICE DEPOT'S SYSTEM WAS ALSO DEVELOPED BY GE CAPITAL GE CAPITAL SAID IT IS ACTIVELY MARKETING SIMILAR SERVICES TO OTHER RETAILING CUSTOMERS PRICE CO AN OPERATOR OF WAREHOUSE CLUBS BEGAN PROVIDING CREDIT AND DELIVERY SERVICES THROUGH A DELIVERYCENTER NETWORK SEPARATE FROM ITS REGULAR CLUBS THREE YEARS AGO BUT THE COMPANY SAID ITS CUSTOMERS HAVE BEEN MOSTLY SMALL TO MIDSIZE BUSINESSES IT FOUND THAT SCHOOLS AND GOVERNMENT AGENCIES OFTEN DEMAND CONTRACTS THAT LOCK IN PRICES AND QUANTITIES OF GOODS FOR LONGER PERIODS THAN IT COULD GET FROM SUPPLIERS A COMPANY SPOKESMAN SAID PRICE RECENTLY MERGED WITH COSTCO WHOLESALE CORP TO FORM THE INDUSTRY'S SECONDLARGEST WAREHOUSE CLUB OPERATOR PRICECOSTCO INC MICHELLE HELIN VICE PRESIDENT MARKETING FOR SAM'S CLUB SAID WALMART EXPECTS MOST GOVERNMENTAL CUSTOMERS TO BE SMALLER MUNICIPALITIES AND SCHOOLS THAT WILL BE MORE FLEXIBLE ABOUT BUYING POLICIES MS HELIN SAID SAM'S CLUB DIRECT MEMBERS WILL PAY THE SAME PRICES AS REGULAR SAM'S CLUB CUSTOMERS SHE ALSO SAID WALMART'S BUYING POWER ENSURES THOSE PRICES WILL BE LOWER THAN CORPORATE BUYERS COULD OTHERWISE GET FROM WHOLESALERS OR EVEN DIRECTLY FROM MANUFACTURERS ESTIMATES OF THE EXTENT OF THE CORPORATEPROCUREMENT MARKET VARY BUT THE FEDERAL GOVERNMENT ALONE SPENT 200 BILLION LAST YEAR DIRECTLY BUYING GOODS AND SERVICES ACCORDING TO GOVERNMENT ESTIMATES 9311020057 931102 BUSINESS BRIEF BRADLEES INC GROUP BOOSTS STAKE TO 86 AFTER BUYING 82100 SHARES A GROUP INCLUDING SC FUNDAMENTAL FUND LP INCREASED ITS STAKE IN BRADLEES INC TO 86 ACCORDING TO A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION IN ITS FILING THE INVESTMENT GROUP SAID IT PURCHASED 82100 COMMON SHARES OF THE RETAILER FROM AUG 30 TO OCT 28 AT PRICES RANGING FROM 13625 TO 1575 A SHARE THE GROUP CURRENTLY HOLDS 970000 SHARES OF BRADLEES COMMON STOCK WE THINK THE STOCK IS CHEAP RIGHT NOW SAID PETER COLLERY A PRINCIPAL OF SC FUNDAMENTAL FUND WHICH IS BASED IN NEW YORK MR COLLERY ADDED THAT HIS GROUP PLANS TO REMAIN A PASSIVE INVESTOR IN THE COMPANY BRADLEES DECLINED TO COMMENT ON THE FILING IN NEW YORK STOCK EXCHANGE TRADING BRADLEES SHARES CLOSED AT 1375 EACH DOWN 125 CENTS 9311020056 931102 FOREIGN EXCHANGE DOLLAR RESUMES ITS SURGE AGAINST MARK BOOSTED BY BULLISH US ECONOMIC DATA BY BENJAMIN DOLVEN SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR'S ADVANCE ON THE MARK RESUMED MONDAY AS A REPORT INDICATING THAT THE US MANUFACTURING SECTOR'S RECOVERY IS GAINING MOMENTUM SENT THE US CURRENCY THROUGH A KEY RESISTANCE LEVEL AGAINST THE GERMAN CURRENCY HOWEVER THE DOLLAR EASED AGAINST THE POUND AND THE YEN DROPPING TO THE BOTTOM OF ITS CURRENT TRADING RANGE AGAINST THE JAPANESE CURRENCY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16938 MARKS UP FROM 16859 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10820 YEN OFF FROM 10856 YEN STERLING WAS TRADING AT 14825 UP FROM 14815 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10835 YEN AND AT 16960 MARKS DEALERS SAID THE NATIONAL ASSOCIATION OF PURCHASING MANAGERS INDEX FOR OCTOBER WHICH ROSE TO 538 FROM 497 IN SEPTEMBER GAVE THE MARKET FURTHER CONFIRMATION THAT THE US ECONOMIC RECOVERY HAS PICKED UP STEAM RELEASE OF THE PURCHASING MANAGERS' INDEX SENT THE DOLLAR SURGING ABOVE THE KEY 16920MARK LEVEL THE HIGHEST POINT IT REACHED DURING ITS RALLY LAST WEEK THE DOLLAR HAD TESTED THAT LEVEL SEVERAL TIMES EARLIER MONDAY BUT FOLLOWING RELEASE OF THE REPORT IT SURGED TO AN INTRADAY HIGH OF 16971 MARKS AT THAT POINT PARTICIPANTS TOOK PROFITS DROPPING THE DOLLAR SLIGHTLY TOWARD THE END OF THE DAY DEALERS CITED WIDESPREAD PERCEPTIONS THAT GERMANY'S CENTRAL BANK WAS SELLING DOLLARS FOR MARKS AT AROUND THE 16920MARK LEVEL THROUGHOUT THE DAY IN AN EFFORT TO REPLENISH ITS MARK RESERVES FOLLOWING THE EUROPEAN CURRENCY CRISIS IN JULY THAT FOLLOWED RUMORS OF SIMILAR DOLLAR SALES BY SEVERAL EUROPEAN CENTRAL BANKS DURING FRIDAY'S DEALINGS ACTION IN EUROPE WAS MUTED MONDAY BY THE ALL SAINTS DAY HOLIDAY WHICH CLOSED BUSINESSES IN BELGIUM FRANCE ITALY PORTUGAL AND SPAIN BUT DEALERS SAID EUROPEAN CENTRAL BANKS COULD CONTINUE TO SELL DOLLARS FOR MARKS THIS WEEK TO TAKE ADVANTAGE OF FURTHER GAINS BY THE US CURRENCY DEALERS DON'T EXPECT SUCH ACTION TO SUBSTANTIALLY WEIGH DOWN THE DOLLAR'S UPWARD PUSH THE CURRENT DOLLAR SELLING BY CENTRAL BANKS DOESN'T HAVE THE SAME PSYCHOLOGICAL IMPACT AS INTERVENTION SAID FRANK PUSATERI VICE PRESIDENT CORPORATE FOREIGN EXCHANGE AT BANK OF BOSTON IT'S BEING READ AS THAT THEY HAVE LOT OF RESERVES TO REPLENISH BUT THEY'RE NOT SEEN AS LOOKING TO DEFEND A STRONG LEVEL FOR THE MARK DEALERS SAID THE US CURRENCY WILL FIND STRONG SUPPORT AROUND CURRENT LEVELS AMONG INVESTORS WHO ARE BECOMING INCREASINGLY PERSUADED THAT THE US ECONOMY WILL CONTINUE TO GROW STRONGLY IN THE FOURTH QUARTER LEVELS AROUND 16920 AND 16900 MARKS ARE VERY VERY STRONG FLOORS SAID GARY SAKAMOTO VICE PRESIDENT AT NATIONAL WESTMINSTER BANK PLC IN NEW YORK PEOPLE WILL BE VERY HAPPY TO BUY DOLLARS AT THESE LEVELS IT STILL FEELS BULLISH FOR THE DOLLAR ADDED THE BANK OF BOSTON'S MR PUSATERI THE UPSIDE IS CLEARLY FAVORED ANY PULLBACKS WILL BE TEMPORARY AND WILL PROVIDE INVESTORS WITH THE OPPORTUNITY TO BUY ON DIPS 9311020055 931102 BUSINESS BRIEF ABB GROUP PARTNERSHIP FOR FINANCING OF BIG PROJECTS IS CREATED ASEA BROWN BOVERI INC SAID IT CREATED A PARTNERSHIP TO PROVIDE EQUITY AND SUBORDINATED DEBT FINANCING FOR MAJOR INDUSTRIAL AND POWER PROJECTS ABB FUNDING PARTNERS LP WHOSE PARTNERS INCLUDE A UNIT OF ABB'S FINANCIAL SERVICES UNIT AS WELL AS SIX OTHER INVESTMENT INSTITUTIONS HAS RESOURCES OF SEVERAL HUNDRED MILLION DOLLARS THE INDUSTRIAL PRODUCTS AND SERVICES PARENT COMPANY SAID ABB WOULDN'T SPECIFY THE FUND'S VALUE MORE PRECISELY ABB SAID THE PARTNERSHIP WOULD CONSIDER FUNDING POSITIONS TO ENABLE ITS CUSTOMERS TO MOVE AHEAD WITH PROJECTS AND AWARD CONTRACTS TO ABB PROJECTS FOR THE FUND ARE EXPECTED TO INCLUDE POWER AND CHEMICAL PLANTS PAPER AND PULP MILLS AND RAILROAD AND CARMAUFACTURING FACILITIES ABB IS A STAMFORD CONN UNIT OF ABB GROUP OF SWITZERLAND 9311020054 931102 LEXUS SEARCH FEATURE MODIFIED DAYTON OHIO MEAD CORP UNIT MEAD DATA CENTRAL INC SAID IT ADDED A FEATURE TO ITS LEXIS AND NEXUS INFORMATION SERVICES THAT ALLOWS THE USE OF PLAINENGLISH SEARCH REQUESTS RATHER THAN THE TRADITIONAL RIGID SOCALLED BOOLEAN CODING THE FEATURE CALLED FREESTYLE WILL BE AVAILABLE TO A SELECTED GROUP OF 1000 CUSTOMERS IN LATE NOVEMBER AND TO ALL CUSTOMERS IN 1994'S FIRST QUARTER THERE WILL BE NO ADDITIONAL CHARGE MEAD DATA SAID AND USERS WILL STILL HAVE THE OPTION OF USING THE BOOLEAN SEARCH METHOD LEXIS AND NEXIS ACCOUNT FOR ABOUT 90 OF MEAD DATA'S REVENUE WHICH WAS 495 MILLION IN 1992 9311020053 931102 GOODYEAR SETS TIRE DEAL AKRON OHIO GOODYEAR TIRE & RUBBER CO BOLSTERING ITS DISTRIBUTION NETWORK SAID IT WILL BEGIN SELLING A LINE OF GOODYEARBRAND PASSENGER TIRES TO WALMART STORES INC NEXT YEAR THE TIRE MAKER WILL MAKE ITS NEW VIVA ALLSEASON RADIAL FOR WALMART GOODYEAR USED THE VIVA NAME 10 YEARS AGO BUT FOR A DIFFERENT TYPE OF TIRE THE VIVA LINE WILL BE AVAILABLE IN WALMART STORES FEB 1 GOODYEAR'S DECISION TO SELL TO WALMART IS ANOTHER EXAMPLE OF ITS AGGRESSIVE STRATEGY TO EXPAND ITS DISTRIBUTION NETWORK THE COMPANY IN 1992 FOR THE FIRST TIME SINCE THE 1920S BEGAN SELLING GOODYEARBRAND TIRES TO A MASS MERCHANDISER SEARS ROEBUCK & CO AND IN JANUARY IT SIGNED UP DISCOUNT TIRE CO A BIG INDEPENDENT TIRE RETAILER BUT WHILE THE MOVES HAVE SPURRED SALES THEY ALSO HAVE BROUGHT PROTESTS FROM GOODYEAR'S INDEPENDENT DEALERS WHO SAY THEIR COMPETITIVE POSITIONS ARE ERODING THE WALMART AGREEMENT AT LEAST INITIALLY RAISED LITTLE CONCERN HOWEVER 9311020052 931102 WHAT'S NEWS BUSINESS AND FINANCE CAPITAL CITIES PLANS TO BUY BACK 12 OR ABOUT 1 BILLION OF ITS SHARES AND SAID CHAIRMAN THOMAS MURPHY WILL REASSUME THE POST OF CHIEF EXECUTIVE NEXT YEAR WHEN DANIEL BURKE RETIRES SOME WALL STREET ANALYSTS SAID THE COMPANY'S BUYBACK PLAN AND ITS DECISION NOT TO RECRUIT A CHIEF EXECUTIVE FROM OUTSIDE THE COMPANY MAKES THE OWNER OF THE ABC NETWORK A POTENTIAL ACQUISITION TARGET MANUFACTURING EXPANDED IN OCTOBER FOR THE FIRST TIME IN FIVE MONTHS A PURCHASING MANAGERS' POLL SHOWS BUT THE GROWTH STILL HASN'T TRANSLATED INTO INCREASED HIRING AT FACTORIES SEPARATELY NEW CONSTRUCTION SPENDING ROSE 07 IN SEPTEMBER AFTER A REVISED INCREASE OF 02 IN AUGUST THE DOW JONES INDUSTRIALS HIT THEIR THIRD RECORD IN A WEEK CLIMBING 1202 POINTS TO 369261 ON THE OCTOBER SURVEY OF PURCHASING MANAGERS THE TREASURY'S 30YEAR BENCHMARK FELL NEARLY A POINT ITS YIELD WAS 603 MCDONNELL DOUGLAS REPORTED RECORD THIRDQUARTER PROFIT AND PREDICTED A STRONG FOURTH QUARTER DESPITE SHRINKING DEFENSE AND COMMERCIAL JET UNITS 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 XEROX INTRODUCED A VERSION OF GRAPHICARTS FILM THAT IT SAYS IS CHEAPER AND ENVIRONMENTALLY SAFER THE FILM WHICH DOESN'T USE SILVER COULD THREATEN KODAK'S DOMINANCE OF THE 18 BILLION MARKET SILVER FUTURES FELL PULLING DOWN OTHER METALS WALMART PLANS TO TARGET BIG CORPORATE AND INSTITUTIONAL CUSTOMERS IN A MAJOR EFFORT TO BOOST ITS UNDERPERFORMING SAM'S CLUB WAREHOUSE STORES MOST OPEC MEMBERS ARE STICKING TO THEIR NEW QUOTAS INITIAL REPORTS ON PRODUCTION FOR OCTOBER CONFIRMED HICKS MUSE AGREED TO PURCHASE CLOSELY HELD G HEILEMAN BREWING FOR 390 MILLION OFFICIALS OF THE INVESTMENT FIRM SAID THEY PLAN TO LOOK AT ADDITIONAL ACQUISITIONS OF BREWERS AN AMERICAN EXPRESS AFFILIATE IMPROPERLY MADE LOANS TO WORKERS FAILED TO KEEP ADEQUATE LOANLOSS RESERVES AND VIOLATED OTHER RULES THE FED SAID IN IMPOSING A 950000 PENALTY THE SUPREME COURT AGREED TO HEAR A CHALLENGE TO CALIFORNIA'S AGGRESSIVE TAX POLICY ON MULTINATIONAL FIRMS TENNECO'S CHAIRMAN SAID DOCTORS TOLD HIM A LIFETHREATENING BRAIN TUMOR DISCOVERED THIS YEAR STOPPED GROWING AND IS STARTING TO BREAK UP TURNER BROADCASTING IS TRYING TO PERSUADE HOLLYWOOD PRODUCER DAWN STEEL TO TAKE A MAJOR ROLE IN THE COMPANY PEOPLE CLOSE TO TURNER SAID BRITISH TELECOM CUT SOME OF ITS LONGDISTANCE RATES UP TO 60 FUELING A PRICE WAR IN THE UK PHONE MARKET JAPAN'S MURAMOTO CONSTRUCTION ENTERED BANKRUPTCY PROCEEDINGS WITH 546 BILLION IN DEBT BECOMING JAPAN'S LARGEST POSTWAR FAILURE THE MIDSIZE CONTRACTOR CITED HEAVY EXPOSURE TO SPECULATIVE DEVELOPMENT PROJECTS PARTICULARLY GOLF COURSES TOKYO STOCKS TUMBLED 13 WITH THE NIKKEI FALLING 26473 TO 1943824 BUT HONG KONG STOCKS RALLIED 32 FOLLOWING A 35 SURGE LAST FRIDAY ON BUYING BY FOREIGN INVESTORS BONDS LEHMAN BROTHERS TREASURY INDEX 558660 OFF 5358 COMMODITIES OIL 1743 A BARREL UP 51 CENTS DOW JONES FUTURES INDEX 13078 OFF 084 SPOT INDEX 11937 OFF 102 DOLLAR 10820 YEN OFF 036 16938 MARKS UP 00079 9311020051 931102 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 HORIZON OUTLET CENTERS INC INITIAL OFFERING OF 84 MILLION COMMON SHARES PRICED AT 24 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC MIRAGE RESORTS INC 125 MILLION COMMON SHARES PRICED AT 2080 APIECE THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES THE SHARES ARE BEING OFFERED AS A 25FOR1 SPLIT TRANSNATIONAL RE CORP INITIAL OFFERING OF FIVE MILLION CLASS A COMMON SHARES OF THE COMPANY A UNIT OF PHOENIX RE CORP PRICED AT 20 A SHARE THROUGH UNDERWRITERS ALEX BROWN & SONS INC ORLANDOORANGE COUNTY EXPRESSWAY AUTHORITY 2066 MILLION SERIES 1993A JUNIORLIEN REVENUE REFUNDING BONDS PRICED BY A PAINEWEBBER INC GROUP YIELDS RANGE FROM 365 IN 1997 TO 540 IN 2019 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS THE OFFERING SERIES 1993237 IS BACKED BY FANNIE MAE STRIPS WHICH ARE BACKED IN TURN BY FANNIE MAE 75 MORTGAGE SECURITIES THE COLLATERAL INCLUDES 100 MILLION STRIPS TRUST 252 PRINCIPALONLY STRIPS 50 MILLION STRIPS TRUST 218 PRINCIPALONLY STRIPS AND 50 MILLION STRIPS TRUST 221 PRINCIPALONLY STRIPS FREMONT FINANCIAL CORP 100 MILLION OF SMALLBUSINESSLOAN ASSETBACKED SECURITIES PRICED AT PAR TO FLOAT 35 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE ACCORDING TO MCM CORPORATEWATCH THE ISSUE FREMONT SMALL BUSINESS LOAN TRUST 1993B HAS AN AVERAGE LIFE OF 395 YEARS AND WAS LED BY MERRILL LYNCH & CO THE CERTIFICATES WERE RATED TRIPLEA BY BOTH S&P AND DUFF & PHELPS CO BASED ON A SUBORDINATE SLICE OF SECURITIES AND A CASH COLLATERAL ACCOUNT DETAILS ON THE CREDIT ENHANCEMENT WERE NOT PROVIDED BANCO BRADESCO SA BRAZIL 50 MILLION OF 7875 EUROBONDS DUE NOV 18 1996 AT ISSUE AND REOFFER PRICE PAR VIA SALOMON BROTHERS INTERNATIONAL LTD BONDS YIELD MARGIN OF 355 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES ONE PAYABLE SEMIANNUALLY CHINA TRAVEL INTERNATIONAL HONG KONG 125 MILLION OF FIVEYEAR CONVERTIBLE EUROBONDS AT ISSUE PRICE PAR VIA MERRILL LYNCH INTERNATIONAL LTD INDICATED COUPON 425 TO 475 BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES AT PREMIUM 19 TO 20 BONDS CALLABLE AFTER TWO YEARS SUBJECT TO PREVAILING SHARE PRICE BEING AT LEAST 150 OF CONVERSION PRICE FEES 25 LESS 05 DEDUCTED FOR LEAD MANAGER OTHER TERMS TO BE FIXED LATER DENMARK SOVEREIGN 150 MILLION OF 36 EUROBONDS DUE NOV 14 1994 AT ISSUE AND REOFFER PRICE PAR VIA SAKURA FINANCE INTERNATIONAL LTD BONDS YIELD 36 FEES 005 MITSUBISHI MATERIALS CORP JAPAN 10 BILLION YEN OF REVERSECOUPON FLOATINGRATE EURONOTES DUE FEB 18 1998 AT ISSUE AND REOFFER PRICE 1001 VIA MITSUBISHI FINANCE INTERNATIONAL PLC FIXED COUPON 335 UNTIL FEB 18 1997 WHEN PUT OPTION EXERCISABLE AT PAR THEREAFTER INTEREST PAID SEMIANNUALLY AT 0125 POINT BELOW SIXMONTH YEN LONDON INTERBANK OFFERED RATE FEES 03 9311020050 931102 BUSINESS BRIEF ELECTROMEDICS INC ADVISER NAMED TO CONSIDER ALTERNATIVES STOCK SOARS AMID HEAVY TRADING IN ITS STOCK ELECTROMEDICS INC ENGLEWOOD COLO SAID IT RETAINED DAIN BOSWORTH INC AS ITS FINANCIAL ADVISER TO CONSIDER VARIOUS STRATEGIC ALTERNATIVES IN NASDAQ TRADING YESTERDAY ELECTROMEDICS ROSE 875 CENTS OR 189 TO 550 WITH MORE THAN 319000 SHARES TRADED ROUGHLY TEN TIMES THE USUAL VOLUME F JAMES LYNCH CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE MEDICALDEVICE MAKER SAID HE DIDN'T KNOW WHAT CAUSED THE SUDDEN UPSWING AND THAT DAIN BOSWORTH HAD BEEN RETAINED PRIMARILY TO REASSURE DIRECTORS AND SHAREHOLDERS ON FRIDAY ELECTROMEDICS REPORTED THIRDQUARTER NET INCOME FELL 41 TO 277000 OR TWO CENTS A SHARE ON A 4 DECLINE IN REVENUE TO 93 MILLION THAT WAS BELOW ANALYST'S ESTIMATES OF THREE CENTS A SHARE FOR THE PERIOD AND BELOW THE YEAREARLIER PERIOD WHEN THE COMPANY EARNED 466000 OR FOUR CENTS A SHARE ON REVENUE OF 97 MILLION 9311020049 931102 BUSINESS BRIEF TITAN CORP AIR FORCE CONTRACT DISPUTE IS RESOLVED PACT IS REVISED TITAN CORP A SAN DIEGO ELECTRONICS CONCERN SAID IT RESOLVED A DISPUTE WITH THE AIR FORCE OVER A 1987 SATELLITECOMMUNICATIONS CONTRACT THE AIR FORCE NOTIFIED TITAN'S LINKABIT DIVISION IN MARCH 1992 THAT IT MIGHT TERMINATE A UHF SATELLITE TERMINAL CONTRACT FOR DEFAF ALLEGED TECHNICAL AND PROGRAM DEFICIENCIES TITAN SAID THE RESOLUTION WILL ALLOW IT TO RESUME WORK ON A MODIFIED VERSION OF THE CONTRACT WE WILL BE ABLE TO COMPLETE THE CONTRACT WITHOUT ANY OF THE DOWNSIDE REFERRED TO IN MARCH 1992 SAID STEVE MEYER SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER THERE WAS A RISK BACK THEN THAT WE WOULD HAVE TO PAY BACK 96 MILLION IN PROGRESS PAYMENTS THE REVISED CONTRACT WON'T HAVE SIGNIFICANT FINANCIAL IMPACT MR MEYER SAID ADDING THAT ANNUAL REVENUE OF ABOUT 2 MILLION FOR THE 2 1/2 YEARS REMAINING UNDER THE CONTRACT WILL BE OFFSET BY ASSOCIATED COSTS 9311020048 931102 BUSINESS BRIEF AMERICAN MOBILE SYSTEMS INC SEC BEGINS A FORMAL PROBE INTO TRANSFER OF 41 MILLION AMERICAN MOBILE SYSTEMS INC WOODLAND HILLS CALIF DISCLOSED THAT THE SECURITIES AND EXCHANGE COMMISSION HAD LAUNCHED A FORMAL INVESTIGATION INTO AN INCIDENT WHEN THE COMPANY'S FORMER CHAIRMAN ALLEGEDLY MADE AN UNAUTHORIZED TRANSFER OF 41 MILLION IN COMPANY FUNDS THE COMPANY HAS DENIED ALL WRONGDOING BUT SAID IT HAS BEEN COOPERATING WITH THE SEC WHICH HAD BEEN INFORMALLY INVESTIGATING THE EXECUTIVE IN QUESTION WILLIAM J YOUNG HAS LEFT THE COMPANY AND HAS BEEN SUCCEEDED AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER BY RICHARD SOMERS FORMERLY VICE CHAIRMAN MR YOUNG HAS SAID HE DIDN'T BELIEVE HE DID ANYTHING IMPROPER THE INVESTIGATION WAS DISCLOSED IN AN SEC FILING LAST AUGUST THE PROVIDER OF MOBILE TELEPHONE AND DISPATCH SERVICES SIGNED A DEFINITIVE AGREEMENT WITH NEXTEL COMMUNICATIONS INC FOR NEXTEL TO ACQUIRE A STAKE OF BETWEEN 51 AND 61 IN THE COMPANY 9311020047 931102 BUSINESS BRIEF FIRST NATIONAL CORP UNIT RECAPITALIZES PARENT TO SEEK BANKRUPTCY SHIELD FIRST NATIONAL BANK SAID IT COMPLETED A RECAPITALIZATION THAT WILL RESULT IN ITS FORMER PARENT PUBLICLY TRADED FIRST NATIONAL CORP IN SAN DIEGO FILING FOR BANKRUPTCY PROTECTION AND SEVERING ITS TIES WITH THE BANK THE BANK SOLD 8 MILLION IN NEW SHARES TO A GROUP OF PRIVATE INVESTORS TWO OF WHOM HAVE AGREED TO BUY OUT THE HOLDING COMPANY'S REMAINING 4 STAKE IN THE BANK FOR 100000 AND TO ASSUME THE COMPANY'S 78 MILLION IN DEBT THE TWO INVESTORS ARE JEFFREY A SMITH AND JOHN W ADAMS OF SMITH MANAGEMENT CO IN NEW YORK AS PART OF ITS RECAPITALIZATION PLAN KEY EXECUTIVES OF FIRST NATIONAL CORP RESIGNED TO JOIN THE BANK ROBERT D RICHLEY WAS NAMED VICE CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER MALIN BURNHAM WAS NAMED CHAIRMAN FRANKLIN T LLOYD A SAN DIEGO ATTORNEY HAS BEEN NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF THE HOLDING COMPANY AND WILL PRESIDE OVER THE BANKRUPTCY SEPARATELY FIRST NATIONAL CORP SAID ITS THIRDQUARTER LOSS NARROWED TO 196000 OR FIVE CENTS A SHARE FROM 14 MILLION OR 40 CENTS A SHARE A YEAR EARLIER 9311020046 931102 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CHINA PLANS TO PROPOSE AT THE ASIAPACIFIC ECONOMIC COOPERATION FORUM'S ANNUAL MEETING IN SEATTLE THIS MONTH THAT ALL 15 APEC MEMBERS AWARD EACH OTHER UNCONDITIONAL MOSTFAVOREDNATION TRADE STATUS GRANTING EXPORTERS LOW TARIFFS THE US EXTENDS ALMOST EVERY COUNTRY UNFETTERED MFN STATUS A CORE PRINCIPLE OF THE WORLD'S TRADE REGULATORY BODY AND THE CLINTON ADMINISTRATION HAS COMMITTED TO HELP MAKE THE FIVEYEAROLD APEC THE LEADER FOR ASIAN ECONOMIC COOPERATION BUT IT IS EXPECTED TO USE ITS INFLUENCE TO BLOCK CHINA FROM USING THE FORUM FOR AN END RUN AROUND THE US FOLLOWING CHINA'S BRUTAL SUPPRESSION OF PRODEMOCRACY DEMONSTRATORS IN 1989 THE US CONGRESS TRIED TO REVOKE BEIJING'S MFN STATUS THREE YEARS RUNNING BUT WAS VETOED THE US LAST MAY EXTENDED THE TRADE STATUS FOR A YEAR BUT WARNED THAT RENEWAL WOULD REQUIRE CHINA TO IMPROVE ITS HUMANRIGHTS RECORD THE EUROPEAN COMMUNITY TREATY ON TIGHTER UNITY WENT INTO EFFECT FORMING WHAT AMOUNTS TO A NEW CITIZENSHIP FOR PEOPLES OF THE 12NATION TRADE BLOC THE ACCORD'S GOALS INCLUDE CREATING AN EC CURRENCY BY 1999 AND FORGING COMMON ECONOMIC FOREIGN AND SECURITY POLICIES UNDER AN OVERHAUL OF THE EC TO GIVE IT NEW RESPONSIBILITIES NEW INSTITUTIONS WILL BE SET UP INCLUDING THE EUROPEAN MONETARY INSTITUTE IN FRANKFURT A FORERUNNER TO AN EC CENTRAL BANK THE PACT SEEKS CLOSER COOPERATION ON ISSUES SUCH AS ILLICIT DRUGS TERRORISM CRIME AND IMMIGRATION DISABLED PEOPLE WITH JOBS IN JAPAN TOTALED 240985 AS OF JUNE AN INCREASE OF 11358 OR 49 FROM A YEAR EARLIER EMPLOYEES WITH PHYSICAL AND MENTAL DISABILITIES ACCOUNTED FOR A RECORD 141 OF THE TOTAL WORK FORCE UP FROM 136 BUT JOB ROLLS OF DISABLED PEOPLE FELL SHORT OF JAPAN'S MANDATORY TARGET OF 16 AT COMPANIES WITH AT LEAST 63 EMPLOYEES OF THESE COMPANIES 486 FAILED TO COMPLY WITH THE LAW UP FROM 481 A YEAR EARLIER IRAN DEVALUED ITS RIAL CURRENCY AGAINST THE US BRITISH AND GERMAN CURRENCIES THE RIAL'S NEW FLOATING RATE WAS INITIALLY SET AT 1625 TO THE DOLLAR DOWN FROM 1585 BANKERS LINKED THE MOVE TO IRAN'S WEAKENING BALANCE OF PAYMENTS AND HIGH DEBT OIL GENERATES 90 OF IRAN'S EXPORT EARNINGS HURT BY SOFTER OIL PRICES AND FOREIGN DEBT TOTALS ABOUT 30 BILLION WITH AT LEAST 2 BILLION IN ARREARS IRAN ALSO CLAMPED DOWN ON FOREIGN CURRENCY REQUIRING GOVERNMENT APPROVAL FOR ALL GOODS AND SERVICES IMPORTS AND BARRING STATE INSTITUTIONS FROM CHANGING MONEY ON THE FREE MARKET JAPAN RENEWED FOR FIVE YEARS THE BROADCASTING LICENSE OF ASAHI NATIONAL BROADCASTING CO ON THE CONDITION THAT IT TAKE NECESSARY MEASURES ONCE BIAS ALLEGATIONS ARE RESOLVED TV ASAHI WAS ACCUSED OF SLANTED COVERAGE IN LAST SUMMER'S ELECTION CAMPAIGN WHICH RESULTED IN THE LIBERAL DEMOCRATIC PARTY GOVERNMENT'S OUSTER AFTER 38 YEARS IN POWER THE TV ASAHI DISPUTE STEMS FROM A FORMER NEWS BUREAU CHIEF'S REMARKS THAT RELATED TO THE LDP'S CONTINUED RULE AND RAISED DOUBTS ABOUT THE NETWORK'S ELECTION COVERAGE KUWAIT IS CONSIDERING CHARGING FEES FOR PUBLIC SERVICES AND MIGHT HAVE TO IMPOSE TAXES THE FINANCE MINISTER SAID NOTING THAT REVENUE CAN'T BE INCREASED SIGNIFICANTLY OTHERWISE NASSER ALROWDHAN FAVORED PRIVATIZING ENTERPRISES AND ENCOURAGING FOREIGN INVESTMENT WHICH HAS SHRUNK BY A THIRD TO ABOUT 30 BILLION BECAUSE OF THE GULF WAR MISMANAGEMENT AND EMBEZZLEMENT HE SAID KUWAITIS SHOULD BE WILLING TO GIVE UP SOME OF THE WELFARE STATE HEALTH CARE AND EDUCATION ARE PROVIDED FREE ELECTRICITY WATER AND COMMUNICATIONS ARE HEAVILY SUBSIDIZED KUWAIT IS RICH IN OIL BUT ITS 199394 BUDGET PROJECTS A 52 BILLION DEFICIT WITH LOCAL ELECTIONS IN TAIWAN COMING UP ON NOV 27 VOTER SUPPORT FOR THE RULING KUOMINTANG HAS FALLEN TO HISTORIC LOWS A GALLUP POLL FOUND THAT ANGER ABOUT ALLEGED OFFICIAL CORRUPTION AND DISSATISFACTION WITH SOCIAL PROGRAMS WEAKENED BACKING FOR THE KMT GOVERNMENT JUST 25 OF RESPONDENTS WERE INCLINED TO VOTE FOR KMT CANDIDATES IN THE BALLOTING FOR COUNTY MAGISTRATES AND MAYORS PARTY SUPPORT WAS DOWN FROM 28 A YEAR AGO AND 42 FOUR YEARS AGO AND 95 FAVORED THE OPPOSITION DEMOCRATIC PROGRESSIVE PARTY UP FROM 6 A YEAR AGO WHILE 46 LIKED THE CHINESE NEW PARTY WHICH RECENTLY BROKE OFF FROM THE KMT VOTERS WHO SAID THEY EXAMINED THE CANDIDATES AND NOT THE PARTIES REPRESENTED 28 OF THOSE POLLED A SIGN THAT TAIWANESE INCREASINGLY DON'T IDENTIFY WITH A POLITICAL PARTY EXPECTATIONS ARE WIDESPREAD THAT VOTER SUPPORT FOR THE KMT COULD FALL BELOW 50 FOR THE FIRST TIME AND THAT THE DPP COULD EVEN TALLY THE MOST VOTES TURKMENISTAN BEGAN USING ITS NEW MANAT CURRENCY JOINING THE RANKS OF FORMER SOVIET REPUBLICS THAT HAVE GIVEN UP THE RUSSIAN RUBLE AS TRANSITIONAL MONEY THE MANAT'S VALUE WAS SET AT 50 US CENTS TO AVOID VIOLENCE MOSCOW BANNED DEMONSTRATIONS NEXT SUNDAY THE ANNIVERSARY OF THE NOV 7 1917 BOLSHEVIK REVOLUTION THE CITY SAID SOME GROUPS THAT HAD APPLIED TO RALLY ON THE FORMER COMMUNISTS' HALLOWED HOLIDAY WERE INVOLVED IN LAST MONTH'S DEADLY UPRISING AGAINST THE RUSSIAN PRESIDENT BY PARLIAMENTARY HARDLINERS 9311020045 931102 INTERNATIONAL BRIEF HOPEWELL HOLDINGS LTD POWERPLANT OPERATIONS SET FOR LISTING AS SEPARATE FIRM HOPEWELL HOLDINGS LTD HONG KONG ANNOUNCED LONGAWAITED PLANS TO LIST ITS POWERPLANT OPERATIONS AS A SEPARATE COMPANY TO BE CALLED CONSOLIDATED ELECTRIC POWER ASIA LTD HOPEWELL WILL RETAIN CONTROL OF THE COMPANY HOWEVER LATE MONDAY HOPEWELL SAID IT WILL SELL 475 MILLION SHARES IN THE NEW COMPANY THROUGH A PUBLIC OFFERING IN HONG KONG AND PRIVATE PLACEMENTS AROUND THE WORLD CONSOLIDATED ELECTRIC POWER ASIA OR CEPA WILL BE LISTED ON THE COLONY'S STOCK EXCHANGE CEPA WILL HOLD HOPEWELL'S TWO POWERPLANT PROJECTS IN CHINA AS WELL AS THREE POWERPLANT PROJECTS AND NINE BARGEMOUNTED POWER PLANTS OPERATING IN THE PHILIPPINES THE POWERPLANT BUSINESS WITH ITS STEADY INCOME STREAM AND STRONG GROWTH PROSPECTS HAS BEEN THE TALK OF HONG KONG'S FINANCIAL COMMUNITY FOR WEEKS THE PLANS WERE FIRST ANNOUNCED LAST APRIL LI KASHING'S CHEUNG KONG HOLDINGS LTD PEREGRINE INTERNATIONAL HOLDINGS LTD AND JAPAN'S KANEMATSU CORP HAVE ALREADY PLACED ORDERS FOR A TOTAL OF 87750000 SHARES WITH MR LI'S GROUP ASKING FOR 40 MILLION SHARES ALONE 9311020044 931102 BUSINESS BRIEF SUNAMERICA INC FIRM EXPECTS TO POST GAIN OF 44 IN ITS 4THPERIOD NET SUNAMERICA INC EXPECTS TO REPORT THAT NET INCOME FOR ITS FISCAL FOURTH QUARTER SOARED 44 SAID ELI BROAD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER FOR THE QUARTER ENDED SEPT 30 THE COMPANY EXPECTS TO REPORT NET ROSE TO 356 MILLION OR 75 CENTS A SHARE FROM 248 MILLION OR 56 CENTS A SHARE A YEAR EARLIER MR BROAD SAID THE LOS ANGELES FINANCIALSERVICES COMPANY WHICH SPECIALIZES IN RETIREMENT PRODUCTS EXPECTS TO REPORT THAT FISCAL 1993 EARNINGS ROSE ABOUT 76 TO 127 MILLION OR 275 A SHARE FROM 722 MILLION OR 180 A SHARE IN FISCAL 1992 SUNAMERICA'S AVERAGE SHARES OUTSTANDING IN THE FOURTH QUARTER WERE 42144000 UP FROM 38833000 A YEAR EARLIER IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SUNAMERICA CLOSED AT 41 DOWN 875 CENTS 9311020043 931102 RENAL TREATMENT CENTERS INC BERWYN PA RENAL TREATMENT CENTERS INC SAID IT COMPLETED THE PURCHASE OF A 13STATION DIALYSIS CENTER IN READING PA FROM ST JOSEPH'S HOSPITAL TERMS OF THE TRANSACTION WEREN'T DISCLOSED THE DIALYSIS CENTER SERVES 70 PATIENTS 9311020042 931102 BUSINESS BRIEF CORPORATE SOFTWARE INC SHAREHOLDERS' SUIT PROTESTS PRICE OF PROPOSED BUYOUT SHAREHOLDERS FILED SUIT IN DELAWARE CHANCERY COURT AGAINST CORPORATE SOFTWARE INC PROTESTING A PROPOSED 93 MILLION LEVERAGED BUYOUT THE LAWSUIT WHICH SEEKS CLASSACTION STATUS CLAIMS THAT THE PROPOSED MANAGEMENTLED BUYOUT IS BELOW THE CANTON MASS COMPANY'S MARKET VALUE THE SUIT SEEKS TO STOP THE 15ASHARE BUYOUT PLAN AND EXTEND THE TENDER OFFER PERIOD SCHEDULED TO EXPIRE NOV 29 WE DON'T THINK THE SUIT HAS MUCH MERIT AND WE THINK THE PRICE IS FAIR A SPOKESWOMAN FOR THE COMPUTERSOFTWARE RESELLER SAID THIS IS A MANAGEMENTLED GROUP AND NOT HOSTILE AT ALL A LAWYER FOR THE PLAINTIFFS SAID THE CURRENT SALE PRICE ISN'T THE BEST PRICE FOR THE COMPANY CORPORATE SOFTWARE HAD 301 MILLION IN SALES LAST YEAR IN NATIONAL OVERTHECOUNTER TRADING COMPUTER SOFTWARE CLOSED 125 CENTS LOWER AT 15375 A SHARE 9311020041 931102 CINTAS BUYS PALM BEACH UNIT CINCINNATI CINTAS CORP SAID IT COMPLETED THE ACQUISITION OF THE CAREER APPAREL DIVISION OF PALM BEACH CO PALM BEACH IS A SUBSIDIARY OF PLAID CLOTHING GROUP INC THE CAREER APPAREL DIVISION WITH ANNUAL SALES OF ABOUT 2 MILLION PROVIDES TAILOREDUNIFORM PROGRAMS TO AIRLINES AND OTHER CORPORATE CUSTOMERS 9311020040 931102 WILLIAMHOUSEREGENCY ACCORD NEW YORK A UNIT OF WILLIAMHOUSEREGENCY INC SAID IT AGREED TO ACQUIRE THE PRINCIPAL ASSETS OF KAROLTON ENVELOPE A UNIT OF KIMBERLYCLARK CORP TERMS WEREN'T DISCLOSED KECA CORP A NEWLY FORMED SUBSIDIARY OF WILLIAMHOUSEREGENCY SAID IT WILL BUY KAROLTON BASED IN MIAMISBURG OHIO BY YEAR'S END SALE OF THE UNIT WHICH POSTED ABOUT 50 MILLION IN SALES IN 1993 WILL HAVE NO SIGNIFICANT EFFECT ON KIMBERLYCLARK EARNINGS SAID A COMPANY SPOKESWOMAN ADDING THAT THE SALE IS INTENDED TO HELP FOCUS THE CONSUMERPRODUCTS MAKER MORE ON ITS CORE BUSINESSES KIMBERLYCLARK BASED IN DALLAS MAKES AND MARKETS NAMEBRAND CONSUMER PRODUCTS SUCH AS HUGGIES KLEENEX AND KOTEX WILLIAMHOUSEREGENCY BASED IN NEW YORK IS A CLOSELY HELD PAPERCONVERTING AND PRINTING CONCERN 9311020039 931102 BUSINESS BRIEF CF INCOME PARTNERS INC COMPLETION OF PACT TO SELL MOST ASSETS IS UNCERTAIN CF INCOME PARTNERS INC A LOS ANGELES REALESTATE PARTNERSHIP SAID THERE IS UNCERTAINTY ABOUT COMPLETING A 1825 MILLION PACT TO SELL MOST OF ITS ASSETS TO AMERICAN CONTINENTAL PROPERTIES GROUP THE NEW YORKBASED CLOSELY HELD INSTITUTIONAL REALESTATE INVESTOR PROPOSED REVISED TERMS THAT ARE MATERIALLY DIFFERENT FROM THE ANNOUNCED AGREEMENTS IN PRINCIPLE CF INCOME PARTNERS SAID CONTINGENT UPON COMPLETION OF THE AUGUST AGREEMENT CF INCOME PARTNERS IN SEPTEMBER ANNOUNCED PLANS TO MAKE A 1AUNIT LIQUIDATING DISTRIBUTION TO UNITHOLDERS IT ISN'T CLEAR IF THE DISTRIBUTION CAN BE MADE NOW THE PARTNERSHIP SAID THE PARTNERSHIP HAS DEBT OF MORE THAN 200 MILLION AND SAID IT MAY HAVE TO CHOOSE BETWEEN ALTERNATIVES INCLUDING A BANKRUPTCYLAW FILING OR LIQUIDATION AT UNFAVORABLE PRICES IF IT CAN'T REPAY THE BULK OF ITS DEBT BY YEAR'S END 9311020038 931102 BUSINESS BRIEF BLOCKBUSTER ENTERTAINMENT CORP SONY AND PACE JOIN VENTURE TO OPERATE AMPHITHEATERS BLOCKBUSTER ENTERTAINMENT CORP SAID IT HAS FORMED A JOINT VENTURE TO DEVELOP AND OPERATE AMPHITHEATERS IN NORTH AMERICA EUROPE AND OTHER MARKETS BLOCKBUSTER'S PARTNERS ARE SONY MUSIC ENTERTAINMENT A NEW YORK UNIT OF SONY CORP AND PACE ENTERTAINMENT CORP A HOUSTONBASED SHOW PRODUCER EACH PARTNER WILL CONTRIBUTE EXISTING AMPHITHEATERS TO THE PARTNERSHIP WHICH WILL BE MANAGED BY PACE ENTERTAINMENT SONY IS CONTRIBUTING TWO EXISTING AMPHITHEATERS AND TWO UNDER DEVELOPMENT BLOCKBUSTER IS CONTRIBUTING THREE AMPHITHEATERS AND PACE IS CONTRIBUTING ITS INTEREST IN TWO SEPARATELY BLOCKBUSTER A FORT LAUDERDALE FLA ENTERTAINMENT COMPANY SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE SALE OF 127 MILLION COMMON SHARES PROCEEDS OF THE OFFERING WILL BE USED TO REDUCE DEBT 9311020037 931102 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED OCT 29 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER ABILENE HIGHER EDUCATION AUTHORITY INC WILL REDEEM ON DEC 1 1993 100000 PRINCIPAL AMOUNT OF ITS 64 STUDENT LOAN BONDS SERIES B DUE DEC 1 1997 TEXAS COMMERCE TRUST CO DALLAS IS TRUSTEE BALTIMORE WILL REDEEM ON DEC 1 1993 215000 PRINCIPAL AMOUNT OF ITS 12625 INDUSTRIAL DEVELOPMENT REVENUE BONDS SERIES 1982 DUE DEC 1 2004 MARYLAND NATIONAL BANK BALTIMORE IS TRUSTEE BERKELEY ILL WILL REDEEM ON DEC 1 1993 300000 PRINCIPAL AMOUNT OF ITS SERIES A INDUSTRIAL DEVELOPMENT REVENUE BONDS HARRIS TRUST & SAVINGS BANK CHICAGO IS TRUSTEE CALLOWAY COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY MO WILL REDEEM ON DEC 1 1993 60000 PRINCIPAL AMOUNT OF ITS FIRST MORTGAGE HEALTH CARE FACILITY REVENUE BONDS SERIES 1982 DUE DEC 1 1997 MERCANTILE BANK ST LOUIS IS TRUSTEE DANVILLE ILL CALLS FOR MANDATORY REDEMPTION ON DEC 1 1993 585000 PRINCIPAL AMOUNT OF ITS SINGLE FAMILY MORTGAGE REVENUE BONDS 1978 SERIES A DUE DEC1 199398 AND 2010 THE CITY ALSO CALLS FOR OPTIONAL REDEMPTION ON THE SAME DATE THE REMAINING 6790000 PRINCIPAL AMOUNT OF THE BONDS CONTINENTAL BANK CHICAGO IS CUSTODIAN HARRISON OHIO WILL REDEEM ON DEC 1 1993 ITS 11875 INDUSTRIAL DEVELOPMENT REVENUE REFUNDING BONDS SERIES 1982 DUE DEC 1 2002 SOCIETY NATIONAL BANK DALLAS IS TRUSTEE HOUSTON TEXAS WILL REDEEM ON DEC 1 1993 ITS 6375 SPORTS ARENA FIRST MORTGAGE REVENUE BONDS SERIES 1973 AND 1976 DUE DEC 1 2003 TEXAS COMMERCE BANK HOUSTON IS TRUSTEE AUTHORITY NJ WILL REDEEM ON NOV 22 1993 ITS 6 1/4 POLLUTION CONTROL REVENUE BONDS 1975 SERIES DUE FEB 1 2000 MIDLANTIC NATIONAL BANK ISELIN NJ IS TRUSTEE MINNEAPOLIS HOUSING & REDEVELOPMENT AUTHORITY MINN WILL REDEEM ON DEC 1 1993 1125000 PRINCIPAL AMOUNT OF THE FOLLOWING BEARER AND REGISTERED BONDS DUE DEC 1 OF THE INDICATED YEAR 65 DUE 1994 66 DUE 1995 67 DUE 1996 675 DUE 199798 AND 71 DUE 2010 NORWEST BANK MINNESOTA MINNEAPOLIS IS TRUSTEE NEW MADRID MO WILL REDEEM ON DEC 1 1993 THE FOLLOWING POWER PLANT REVENUE BONDS SERIES 1971 DUE JUNE 1 2003 4215000 PRINCIPAL AMOUNT OF SERIES 1968 AND 1570000 PRINCIPAL AMOUNT OF SERIES 1971 MERCANTILE BANK OF ST LOUIS IS TRUSTEE OLIVENHAIN MUNICIPAL WATER DISTRICT WILL REDEEM ON DEC 1 1993 ITS 1979 WATER REVENUE BONDS BANK OF AMERICA GLENDALE CALIF IS TRUSTEE ONEIDA COUNTY INDUSTRIAL DEVELOPMENT AGENCY WILL REDEEM ON DEC 1 1993 255000 PRINCIPAL AMOUNT OF ITS 725 INDUSTRIAL DEVELOPMENT FIRST MORTGAGE REVENUE BONDS DUE DEC 1 1997 MARINE MIDLAND BANK NEW YORK IS TRUSTEE ONTARIO WILL REDEEM ON NOV 30 1993 ITS 9 3/8 DEBENTURES SERIES FL DUE NOV 30 2008 UNITED MISSOURI TRUST CO NEW YORK IS FISCAL AGENT OSCEOLA ARK WILL REDEEM ON DECEMBER 1 1993 330000 PRINCIPAL AMOUNT OF ITS 7 INDUSTRIAL DEVELOPMENT REVENUE BONDS SERIES A DUE DEC 1 1996 MELLON NATIONAL BANK & TRUST CO PITTSBURGH IS TRUSTEE PASSAIC VALLEY SEWERAGE COMMISSIONERS WILL REDEEM ON DEC 1 1993 735000 PRINCIPAL AMOUNT OF ITS 6 SEWER SYSTEM REVENUE BONDS SERIES A DUE DEC 1 2006 UNITED JERSEY BANK HACKENSACK NJ IS SUCCESSOR TRUSTEE PEQUANNOCK LINCOLN PARK & FAIRFIELD SEWERAGE AUTHORITY WILL REDEEM ON DEC 1 1993 THE FOLLOWING REFUNDING REVENUE BONDS SERIES A 545 DUE DEC 1 1994 55 DUE DEC 1 199596 555 DUE DEC 1 1997 56 DUE DEC 1 199899 AND 59 DUE DEC 1 2015 THE AUTHORITY WILL ALSO REDEEM THE FOLLOWING REVENUE BONDS SERIES B 53 DUE DEC 1 199495 54 DUE DEC 1 199697 55 DUE DEC 1 199899 AND 58 DUE DEC 1 2015 MIDLANTIC NATIONAL BANK ISELIN NJ IS TRUSTEE PUEBLO COUNTY COLO WILL REDEEM ON DEC 1 1993 735000 PRINCIPAL AMOUNT OF THE FOLLOWING 1978 SERIES A SINGLE FAMILY MORTGAGE REVENUE BONDS 68 DUE DEC 1 1994 685 DUE DEC 1 1995 6875 DUE DEC 1 1996 69 DUE DEC 1 1997 695 DUE DEC 1 1998 7 DUE DEC 1 1999 AND 73 DUE DEC 1 2009 NORWEST BANK DENVER IS TRUSTEE SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT WILL REDEEM ON DEC 1 1993 ITS CERTIFICATES OF PARTICIPATION DUE ON AND AFTER DEC 1 1994 BANK OF AMERICA GLENDALE CALIF IS TRUSTEE SOUTH LOUISIANA PORT COMMISSION WILL REDEEM ON DEC 1 1993 1400000 PRINCIPAL AMOUNT OF ITS 68 INDUSTRIAL REVENUE BONDS SERIES 1976 DUE DEC 1 1996 HIBERNIA NATIONAL BANK DALLAS IS TRUSTEE FLA WILL REDEEM THE FOLLOWING SPECIAL ASSESSMENT BONDS ON DEC 1 1993 170000 PRINCIPAL AMOUNT OF ITS 85 PHASE TWO SERIES DUE DEC 1 2010 AND 140000 OF ITS 82 PHASE ONE SERIES DUE DEC 1 2009 BARNETT BANKS TRUST CO NEW YORK IS SUCCESSOR TRUSTEE TEMPLE CITY COMMUNITY REDEVELOPMENT AGENCY WILL REDEEM ON DEC 1 1993 180000 PRINCIPAL AMOUNT OF ITS PARKING LEASE REVENUE BICA GLENDALE CALIF IS TRUSTEE FEDERAL NATIONAL MORTGAGE ASSOCIATION WILL REDEEM THE FOLLOWING MEDIUMTERM NOTE ISSUES ON THE GIVEN DATES 200000000 PRINCIPAL AMOUNT OF 54 DUE NOV 29 1995 ON NOV 29 1993 200000000 OF 73 DUE DEC 2 1998 ON DEC 2 1993 100000000 OF 658 DUE DEC 10 1997 ON DEC 10 1993 AND 250000000 PRINCIPAL AMOUNT OF 537 DUE DEC 15 1995 ON DEC 15 1993 NORTHERN STATES POWER CO WILL REDEEM ON DEC 1 1993 1000000 PRINCIPAL AMOUNT OF ITS 9 1/8 FIRST MORTGAGE BONDS SERIES DUE JULY 1 2019 HARRIS TRUST & SAVINGS BANK CHICAGO IS TRUSTEE WISCONSIN POWER & LIGHT CO WILL REDEEM ON NOVEMBER 30 1993 BOTH OF ITS 756 AND 848 PREFERRED STOCKS WPL HOLDINGS INC MADISON WIS IS REDEMPTION AGENT 9311020036 931102 MARKETING BRIEF INFINITY BROADCASTING CORP NET INCOME SOARED FOURFOLD TO 6 MILLION FOR 3RD QUARTER INFINITY BROADCASTING CORP HOME OF NOTORIOUS RADIO PERSONALITY HOWARD STERN REPORTED RECORD THIRDQUARTER NET INCOME CITING HIGHER ADVERTISING REVENUE AT ITS RADIO STATIONS FOR THE QUARTER THE NEW YORK COMPANY REPORTED EARNINGS OF 6 MILLION OR 20 CENTS A SHARE FOUR TIMES THE 15 MILLION OR SIX CENTS A SHARE REPORTED A YEAR EARLIER REVENUE IN THE QUARTER ROSE 32 TO 552 MILLION UP FROM 417 MILLION INFINITY ALSO ANNOUNCED A 3FOR2 STOCK SPLIT PAYABLE NOV 19 TO SHAREHOLDERS OF RECORD NOV 12 INFINITY ATTRIBUTED THE IMPROVED PERFORMANCE LARGELY TO HIGHER ADVERTISING REVENUE AT MOST OF ITS STATIONS AND TO RECENT ACQUISITIONS OF STATIONS IN PHILADELPHIA BOSTON AND ATLANTA WITH SOONTOBE COMPLETED ACQUISITIONS OF STATIONS IN LOS ANGELES AND WASHINGTON DC THE COMPANY WILL HAVE A TOTAL OF 25 STATIONS 16 OF THEM FM AND NINE AM INCLUDING ONE IN EACH OF THE 10 LARGEST MARKETS 9311020035 931102 MICHAEL BAKER UNIT'S CONTRACT PITTSBURGH MICHAEL BAKER CORP SAID ONE OF ITS UNITS SIGNED A 192 MILLION CONTRACT EXTENSION WITH THE PORT AUTHORITY OF ALLEGHENY COUNTY PA UNDER THE EXTENSION THE COMPANY WILL PROVIDE ADDITIONAL ENGINEERING SERVICES FOR THE FIRST PHASE OF THE AUTHORITY'S AIRPORT BUSWAY PROJECT THE ENGINEERING CONSTRUCTION AND OPERATIONS AND MAINTENANCESERVICES CONCERN HAD 3558 MILLION IN REVENUE IN THE YEAR ENDED JAN 3 9311020034 931102 MARKETING BRIEF PHILIPS ELECTRONICS NV POLYGRAM FILM PACT IS SET WITH CREDIT LYONNAIS UNIT POLYGRAM FILMED ENTERTAINMENT SAID IT AGREED TO DISTRIBUTE A SLATE OF MAJOR FEATURE FILMS THROUGH METROGOLDWYNMAYER INC THE AGREEMENT WHICH SPANS AS LONG AS FOUR YEARS BEGINNING NEXT YEAR WILL INCLUDE AS MANY AS FOUR FILMS A YEAR POLYGRAM A UNIT OF THE POLYGRAM MUSIC CONCERN WHICH IS 75OWNED BY DUTCH ELECTRONICS COMPANY PHILIPS ELECTRONICS NV SAID IT PLANS TO SET UP ITS OWN DISTRIBUTION OPERATION WITHIN THE NEXT FEW YEARS THE COMPANY HAS BEEN PRODUCING FILMS THROUGH SEVERAL UNITS BUT LARGER RELEASES THOSE WITH MORE THAN 1000 PRINTS LARGELY WILL FLOW THROUGH MGM OWNED BY FRENCH BANK CREDIT LYONNAIS SA MGM NEEDS TO INCREASE ITS SUPPLY OF FILMS PRODUCED BY OUTSIDERS TO AUGMENT INHOUSE PRODUCTION IT IS TRYING TO REVIVE UNDER NEW MANAGEMENT AND PREPARE FOR A SALE 9311020033 931102 GRASSO COMPLETES SEAHAWK BUY HOUSTON GRASSO CORP SAID IT COMPLETED THE ACQUISITION OF SEAHAWK SERVICES LTD FROM NOBLE DRILLING CORP AND OFFSHORE LOGISTICS INC ITS JOINT OWNERS FOR ABOUT 21 MILLION SHARES OF STOCK AND WARRANTS GRASSO ALSO SAID THE SPINOFF OF ITS COASTWIDE ENERGY SERVICES INC UNIT WAS APPROVED EACH HOLDER OF GRASSO COMMON WILL RECEIVE ONE SHARE OF COASTWIDE GRASSO SAID IT EXPECTS TO MAIL COASTWIDE SHARES ON NOV 10 GRASSO SHARES WILL BE TRADED EXDIVIDEND TODAY AND TRADING IN COASTWIDE SHARES WILL BEGIN TODAY 9311020032 931102 CALPERS COMMITS MONEY TO A TURNAROUND FUND THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM HAS COMMITTED 125 MILLION TO AN INVESTMENT FUND AIMED AT TURNING AROUND AILING COMPANIES CALPERS A 73 BILLION PENSION FUND WILL PLACE THE MONEY WITH DILLON READ & CO'S ALLIED PARTNERS FUND WHICH PLANS TO MAKE INVESTMENTS IN TROUBLED COMPANIES ON A FRIENDLY BASIS THE DILLON READ FUND IS SEEKING TO RAISE 600 MILLION AND NOW HAS MORE THAN 400 MILLION IN COMMITMENTS A CALPERS SPOKESMAN SAID ALSO INVESTING IN THE FUND WHICH WOULD TAKE STAKES IN COMPANIES AND OFFER EXECUTIVE TALENT TO HELP IMPLEMENT STRATEGIES ARE THE NEW YORK STATE AND GENERAL MOTORS CORP PENSION FUNDS THE CALPERS SPOKESMAN SAID EARLIER THIS YEAR CALPERS DECIDED NOT TO INVEST IN A FUND BEING SET UP BY SHAREHOLDER ACTIVIST ROBERT MONKS THAT FUND WAS SEEN AS MORE ADVERSARIAL THAN ALLIED PARTNERS 9311020031 931102 SCIENCE IN THE LAB MODERN TWIST ON OLD THERAPY SEES THE LIGHT BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS ANCIENT EGYPTIANS ONCE TREATED SKIN DISEASE BY SUNNING THEMSELVES AFTER CHEWING CERTAIN WEEDS GROWING ALONG THE NILE WITH MODERN CHEMICALS AND A FEW FLUORESCENT LIGHTS KIRPAL GULLIYA HOPES TO TURN THAT SAME THEORY INTO A SMART BOMB CAPABLE OF ATTACKING DISEASES DEEP WITHIN THE BODY I WOULD MORTGAGE MY HOUSE ON THIS HE SAYS STANDING IN THE CRAMPED LAB WHERE HE IS TESTING THE LIMITS OF PHOTODYNAMIC THERAPY OR PDT A HOT AREA AMONG SCIENTISTS THESE DAYS PDT UNLEASES A POWERFUL CHEMICAL REACTION THAT APPEARS TO DETER THE SPREAD OF VIRUSES AND DESTROY CANCEROUS CELLS WITHOUT DAMAGING HEALTHY TISSUE THE 44YEAROLD CELL BIOLOGIST IS PUSHING PDT RESEARCH INTO UNCHARTED TERRITORY AND WHILE EARLY TEST RESULTS HERE AT THE BAYLOR RESEARCH INSTITUTE HAVE BEEN INTRIGUING HIS CONTROVERSIAL THEORIES REMAIN UNPROVEN AND HIS EFFORTS ONLY SPARSELY FUNDED IN CONVENTIONAL PDT A BODY IS INJECTED WITH A PHOTOSENSITIVE COMPOUND THAT TENDS TO CONCENTRATE IN DISEASED CELLS WHEN ACTIVATED BY EXPOSURE TO LIGHT THE SUBSTANCE TURNS INTO A MOLECULAR HAND GRENADE THROWING OFF A FORM OF HIGHENERGY OXYGEN THAT BOMBARDS DESTABILIZES AND DESTROYS THE DISEASED CELL IN A MILLISECOND THE THEORY ISN'T NEW THROUGHOUT THIS CENTURY SCIENTISTS HAVE EXPERIMENTED WITH PSORALENS THE ACTIVE INGREDIENT IN THOSE EGYPTIAN PLANTS ALONG THE NILE IN THE 1970S THE US FOOD AND DRUG ADMINISTRATION APPROVED A PSORALENSBASED PSORIASIS TREATMENT IN WHICH PATIENTS STAND IN A TALL BOX LINED WITH FLUORESCENT LIGHTS CANCER SPECIALISTS THINK PDT MAY BE ABLE TO DESTROY DISEASED CELLS LEFT BEHIND AFTER TRADITIONAL SURGERY AND TREAT CERTAIN SKIN CANCERS WITHOUT OPERATIONS AIDS RESEARCHERS HOPE TO LIMIT SPREAD OF THE DISEASE BY USING PDT TO DISABLE HIV IN DONATED BLOOD WHICH HAS ALREADY BEEN BAGGED ALTHOUGH THEY DON'T SEE IT AS A CURE FOR THOSE ALREADY INFECTED WITH THE VIRUS BUT TRADITIONAL PDT FACES TWO BIG BARRIERS YOU NEED TO BE ABLE TO IDENTIFY THE SITE OF THE TUMOR SAYS DAVID DOLPHIN A UNIVERSITY OF BRITISH COLUMBIA CHEMIST AND YOU NEED TO BE ABLE TO GET LIGHT TO THE TUMOR SITE FOR YEARS FEW LIGHT SOURCES COULD REACH AND ACTIVATE PDT SUBSTANCES IF THE TUMOR WAS LOCATED DEEP WITHIN THE BODY LASERS AND FIBEROPTIC DEVICES HAVE OVERCOME SOME OF THOSE LIMITATIONS PROMPTING THE CANADIAN GOVERNMENT TO APPROVE PDT AS A TREATMENT FOR CERTAIN FORMS OF BLADDER CANCER AND THE FDA TO SANCTION VARIOUS CLINICAL TRIALS IN THIS COUNTRY BUT MR GULLIYA BELIEVES THAT PHOTOSENSITIVE COMPOUNDS USED IN PDT CAN BE JUST AS POTENT IF EXPOSED TO LIGHT BEFORE THEY ARE INJECTED IF HIS THEORY IS PROVEN PDT MIGHT BE USED AGAINST A HOST OF BLOODBORNE DISEASES AND TUMORS DEEP WITHIN THE BODY I'M HAPPY TO SEE THESE EXPERIMENTS GOING FORTH SAYS DERMATOLOGIST R ROX ANDERSON WHO IS CONDUCTING PDT CLINICAL TRIALS AT THE MASSACHUSETTS GENERAL HOSPITAL IN BOSTON BUT A LOT OF THESE QUESTIONS WILL ONLY BE ANSWERED BY DOING SOME GOOD IMMUNOLOGY WITH PEOPLE BUT PREACTIVATION AS MR GULLIYA CALLS HIS PATENTED PROCESS ISN'T UNIVERSALLY ACCEPTED THE CONVENTIONAL USE OF LIGHTS MAY LIMIT PDT SOME RESEARCHERS SAY BUT IT ALSO GIVES THE PHYSICIAN CONTROL OVER WHERE THE REACTION OCCURS IN THE BODY MOREOVER CRITICS ARGUE MR GULLIYA'S THEORY ASSUMES THAT PREACTIVATED COMPOUNDS WON'T DAMAGE HEALTHY CELLS IN MY MIND IT'S NOT PDT AT ALL SCOFFS THOMAS DOUGHERTY A RADIATION BIOLOGIST AT BUFFALO'S ROSWELL PARK CANCER INSTITUTE AND A PIONEER IN THE FIELD YOU ARE SIMPLY USING A PHOTOCHEMICAL MECHANISM TO PRODUCE A TOXIC DRUG THAT MAY OR MAY NOT BE BENEFICIAL BESIDES SUCH SKEPTICISM MR GULLIYA HAS HAD TO OVERCOME A SHOESTRING BUDGET HIS ORIGINAL RESEARCH TOOLS NOW RELEGATED TO THE CORNERS OF HIS LAB LOOK LIKE SOMETHING SCAVENGED FROM AN EIGHTHGRADE SCIENCE FAIR AN ALUMINUM PIZZA PLATTER AND A FEW LIGHT FIXTURES SCREWED INTO A PLYWOOD SLAB THEY HAVE SINCE BEEN REPLACED BY BANKS OF FLUORESCENT LIGHTS SUSPENDED ABOVE LONG RECTANGULAR MIRRORS UPON EACH MIRROR SITS A SERIES OF SQUAT BOTTLES EACH CONTAINING A FEW MILLILITERS OF MEROCYANINE 540 THE LIGHTSENSITIVE DYE THAT WILL CHANGE FROM BURGUNDY TO A PALE ORANGE DURING ITS 18 HOURS UNDER THE LIGHTS REFLECTING THE MOLECULAR CHEMICAL CHANGES BROUGHT ON BY PREACTIVATION MR GULLIYA CONTENDS THAT PREACTIVATION SETS OFF A SERIES OF BENEFICIAL CHAIN REACTIONS WITHIN THE COMPOUNDS THAT CONTINUE TO BLAST AWAY AT DISEASED CELLS LONG AFTER THE LIGHTS ARE TURNED OFF EXACTLY HOW WE DO NOT KNOW AT THIS POINT HE SAYS THAT'S THE MILLIONDOLLAR QUESTION BUT WHILE FAR FROM CONCLUSIVE INITIAL EXPERIMENTS INDICATE THAT SMALL DOSES OF THE PREACTIVATED COMPOUND APPARENTLY HAVEN'T HARMED DOGS AND PIGS AND WHEN TREATED WITH IT IN ONE LIMITED LABORATORY TEST AT THE SOUTHWEST FOUNDATION FOR BIOMEDICAL RESEARCH IN SAN ANTONIO TEXAS THE HIV COULDN'T READILY BIND WITH HEALTHY TARGET CELLS IN A TEST TUBE MR GULLIYA GOT A BOOST LAST DECEMBER WHEN THE US ARMY AWARDED BAYLOR RESEARCH A 300000 GRANT TO STUDY WHETHER PREACTIVATED PHOTO TECHNOLOGY COULD BE USED AGAINST HUMAN BREAST CANCER IN THAT STUDY'S INITIAL PHASE 20 MICE WERE IMPLANTED WITH HUMAN BREAST CANCER TUMORS ABOUT THE SIZE OF A BBGUN PELLET HALF THE MICE WERE TREATED WITH PREACTIVATED MEROCYNANINE 540 EVERY OTHER DAY HALF THE MICE RECEIVED NO TREATMENT AFTER 40 DAYS THE TUMORS IN EIGHT TREATED MICE DIDN'T GROW SIGNIFICANTLY TWO OTHERS IN THAT GROUP SHOWED NO SIGNS OF TUMORS AT ALL MEANWHILE TUMORS IN THE UNTREATED MICE GREW FIFTYFOLD BAYLOR RESEARCH HAS LICENSED OPTICAL VENTURES A NORWALK CONN TECHNOLOGY TRANSFER COMPANY TO RAISE FUNDS DEVELOP MARKETABLE PRODUCTS AND WORK TO OBTAIN AN FDA PERMIT FOR CLINICAL TRIALS RELATED TO MR GULLIYA'S WORK BEFORE PERMITTING SUCH TRIALS THE FDA HAS ASKED THE BAYLOR RESEARCHERS TO TEST THE COMPOUND'S TOXICITY ON AT LEAST TWO ADDITIONAL ANIMAL SPECIES SO FAR THOUGH NEITHER OPTICAL VENTURES NOR BAYLOR RESEARCH HAS BEEN ABLE TO RAISE THE ESTIMATED 300000 NEEDED FOR THE TESTS MOST OF MY TIME IS SPENT IN BEGGING WHICH IS WHAT I CALL WRITING GRANTS SAYS MR GULLIYA IT'S SO NEW AND SO AGAINST THE ESTABLISHED PARADIGM THAT IT IS GOING TO TAKE TIME TO ACCEPT IT 9311020030 931102 BUSINESS BRIEF CIGNA CORP BIG CHARGES CITED FOR LOSS OF 94 MILLION IN QUARTER CIGNA CORP PHILADELPHIA REPORTED A LOSS FOR THE THIRD QUARTER BECAUSE OF BIG CHARGES FOR ASBESTOSENVIRONMENTAL LITIGATION AND RESTRUCTURING AS WELL AS POOR PERFORMANCE IN ITS PROPERTY AND CASUALTY INSURANCE SEGMENT CIGNA HAD A LOSS OF 94 MILLION OR 131 A SHARE IN THE THIRD QUARTER COMPARED WITH NET INCOME OF 50 MILLION OR 70 CENTS A SHARE A YEAR EARLIER FOR THE NINE MONTHS EARNINGS WERE 40 MILLION OR 55 CENTS A SHARE DOWN SHARPLY FROM THE 261 MILLION OR 364 A SHARE EARNED A YEAR AGO EXCLUDING THE SPECIAL CHARGES OPERATING RESULTS IN THE QUARTER IMPROVED TO 143 MILLION FROM A LOSS OF 27 MILLION A YEAR AGO TOTAL THIRDQUARTER REVENUE ROSE TO 453 BILLION FROM 449 BILLION A YEAR AGO FOR THE NINE MONTHS REVENUE WAS 135 BILLION DOWN FROM 138 BILLION QUARTERLY RESULTS WERE LOWERED BY A 244 MILLION AFTERTAX ADDITION TO RESERVES FOR ASBESTOS AND ENVIRONMENTAL LITIGATION AND A 107 MILLION AFTERTAX RESTRUCTURING CHARGE THE PROPERTY AND CASUALTY SEGMENT HAD A LOSS OF 320 MILLION IN THE THIRD QUARTER COMPARED WITH THE 275 MILLION LOSS A YEAR AGO 9311020029 931102 INTERNATIONAL ROCHE HOLDING IS ON THE VERGE OF LEAVING INDIA BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI SWISS PHARMACEUTICAL GIANT ROCHE HOLDING AG IS POISED TO PULL OUT OF INDIA EVIDENTLY FRUSTRATED BY CONTINUING PRICE CONTROLS ON SOME PRODUCTS INDUSTRY EXECUTIVES SAID THEY'RE FED UP WITH THE ABSENCE OF ANY MOVEMENT TOWARD REFORM IN THE PHARMACEUTICAL SECTOR SAID A PERSON FAMILIAR WITH THE COMPANY'S PLANS WHILE THE GOVERNMENT OF PRIME MINISTER PV NARASIMHA RAO HAS INTRODUCED SWEEPING ECONOMIC REFORMS SINCE JULY 1991 IT HAS DONE LITTLE TO LIBERALIZE THE PHARMACEUTICAL SECTOR FOR DECADES THE GOVERNMENT HELD DOWN PRICES ON THE GROUNDS THAT INDIA'S POOR WOULDN'T OTHERWISE HAVE ACCESS TO MEDICINE ROCHE'S EXPECTED EXIT STANDS IN CONTRAST TO THE RECENT RUSH OF OTHER TYPES OF COMPANIES TRYING TO SET UP BUSINESSES IN INDIA A RELATIVELY UNTAPPED MARKET MOST OF THE ENTRIES HAVE BEEN FOOD AND CONSUMERPRODUCTS COMPANIES BUT AMONG DRUG COMPANIES ROCHE WOULDN'T BE ALONE IN BOWING OUT LAST APRIL THE INDIAN SUBSIDIARY OF GD SEARLE A UNIT OF US CHEMICAL COMPANY MONSANTO CO SOLD OUT TO ITS INDIAN PARTNERS RPG GROUP EARLIER THE INDIAN SUBSIDIARY OF MERCK & CO OF THE US PULLED OUT ACCORDING TO PEOPLE CLOSE TO THE NEGOTIATIONS ROCHE IS CLOSE TO COMPLETING A DEAL WITH PIRAMAL GROUP OF BOMBAY WHICH WILL MAINTAIN THE PRESENCE OF SOME OF ROCHE'S BRANDS IN INDIA AFTER ITS CORPORATE PRESENCE ENDS OFFICIALS FROM ROCHE PRODUCTS LTD THE COMPANY'S 74OWNED BOMBAY SUBSIDIARY WEREN'T AVAILABLE FOR COMMENT AND NO DETAILS OF THE PROPOSED TRANSACTION WERE AVAILABLE SOME INDUSTRY OFFICIALS WERE PUZZLED BY ROCHE'S TIMING THEY'VE BEEN HERE MORE THAN 30 YEARS SAID A COMPETITOR THEY COULD HAVE WAITED ANOTHER YEAR OR TWO BEFORE PULLING OUT WHEN CONDITIONS ARE BOUND TO CHANGE HE SAID THAT SOME FOREIGN PHARMACEUTICAL COMPANIES MIGHT PREFER TO EXIT NOW AND REENTER SOMETIME DOWN THE LINE WHEN GOVERNMENT POLICY TOWARD THE INDUSTRY SOFTENS UP THOUGH UNWILLING TO COMMENT ON ROCHE'S DECISION ONE SENIOR OFFICIAL SAID HE EXPECTS PARLIAMENT TO START WORK ON A NEW DRUGINDUSTRY POLICY LATER IN THE YEAR THE OFFICIAL SAID THAT WHILE SEVERAL REGULATIONS MAY BE REMOVED SOON AFTER THAT EASING PRICE CONTROLS WILL TAKE LONGER IN THE YEAR ENDED MARCH 31 ROCHE PRODUCTS HAD PRETAX PROFIT OF 373 MILLION RUPEES 12 MILLION ON SALES OF 711 MILLION RUPEES COMPARED WITH PRETAX PROFIT OF 54 MILLION RUPEES ON SALES OF 580 MILLION RUPEES A YEAR EARLIER 9311020027 931102 SOUTHERN CO EXPANSION ATLANTA SOUTHERN CO SAID ITS SOUTHERN ELECTRIC INTERNATIONAL UNIT PAID ABOUT 73 MILLION FOR A 35 STAKE IN A CHILEAN ELECTRIC UTILITY COMPANY SOUTHERN ELECTRIC SAID IT WILL BUY 81 MILLION SHARES OF EMPRESA ELECTRICA DEL NORTE GRANDE SA FROM A CHILEAN GOVERNMENT AGENCY SOUTHERN CO IS AN ELECTRIC UTILITY 9311020026 931102 WORLD MARKETS SHARES TUMBLE 13 IN TOKYO AS JR EAST DOGS THE MARKET PRICES FALL IN LONDON FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP STOCKS TUMBLED 13 IN TOKYO MONDAY IN THIN FUTURESLED DEALINGS AS MARKET SENTIMENT WAS DOGGED BY THE CONTINUED WEAKENING OF NEWLY LISTED EAST JAPAN RAILWAY LONDON SHARES SLIPPED DESPITE A REBOUND FROM THE DAY'S LOWS FRANKFURT PRICES CLOSED BROADLY LOWER AS A HOLIDAY IN SEVERAL EUROPEAN COUNTRIES AND THREE GERMAN STATES SHARPLY REDUCED ACTIVITY BUT HONG KONG STOCKS RALLIED 32 FOLLOWING A 35 SURGE LAST FRIDAY ON BUYING BY FOREIGN INVESTORS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11353 UP 004 REFLECTING HIGHER AMERICAN MARKETS LOWER EUROPEAN MARKETS AND FLAT ASIA/PACIFIC MARKETS FOOTWEAR STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 8661 UP 268 OR 32 WITH NIKE OF THE US POSTING A 7 GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT 13834 DOWN 228 OR 16 WITH ECHO BAY MINES OF CANADA SLIDING 53 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH CLIMBED 22352 POINTS FRIDAY NOSEDIVED 26473 TO 1943824 ON TUESDAY IN TOKYO THE NIKKEI ROSE 9651 POINTS TO CLOSE THE MORNING SESSION AT 1953475 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 200 MILLION SHARES DOWN SHARPLY FROM 2976 MILLION SHARES IN THE PREVIOUS SESSION LOSERS TROUNCED GAINERS 594363 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SURGED 2820 POINTS FRIDAY LOST 1084 TO 161975 THE NEARLY EQUAL CLOSE FRIDAY OF DECEMBER NIKKEI FUTURES AND THE CORRESPONDING STOCK INDEX LED INVESTORS TO UNLOAD STOCKS AT MONDAY'S OPENING WHILE THE OVERALL POOR MOOD FUELED CONTINUED SELLING THROUGHOUT THE SESSION UNDERCUTTING MARKET SENTIMENT WAS CONTINUED REACTION TO THE DEBUT OF EAST JAPAN RAILWAY OR JR EAST THE FIRST NEW LISTING ON THE EXCHANGE'S FIRST SECTION SINCE DECEMBER 1988 THE PRIVATIZED RAILROAD SKIDDED 28000 YEN OR 54 TO 492000 YEN 453476 AFTER INITIALLY JUMPING LAST WEEK ON CASH RAISED FROM SELLING OTHER STOCKS THAT BEAT THE MARKET DOWN THE NIKKEI RECOUPED SOME OF ITS LOSSES IN MONDAY AFTERNOON DEALINGS IN A TECHNICAL BOUNCE BUT THIS WASN'T EXPECTED TO PROVIDE ANY GLUE FOR STICKING POWER BIG PUBLIC PENSION FUNDS WHICH HAVE BEEN PROVIDING SOME SUPPORT FOR THE MARKET WERE NOTABLY ABSENT MONDAY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 66 POINTS TO 31644 THE FT 30STOCK INDEX EASED 59 POINTS TO 23921 VOLUME WAS 4655 MILLION SHARES COMPARED WITH 410 MILLION SHARES IN THE PREVIOUS SESSION WITH NOVEMBER'S ARRIVAL BRINGING CLOSER THE BRITISH GOVERNMENT'S PRESENTATION OF ITS NEW BUDGET THE MARKET PUT IN A DOUR SHOWING DESPITE A SPIRITED ATTEMPT AT A LATE RALLY PRICES FELL SHARPLY AT THE OPENING IN REACTION TO WEEKEND COMMENTS BY KENNETH CLARKE CHANCELLOR OF THE EXCHEQUER WHO SAID HE AGREED WITH BANK OF ENGLAND GOVERNOR EDDIE GEORGE'S RECENT REMARKS THAT THE BRITISH ECONOMY DIDN'T WARRANT A LENDINGRATE CUT FOR NOW MUCH OF THE MARKET'S RECENT STRONG GAINS HAVE BEEN BASED ON HOPES FOR A RATE REDUCTION BY THE END OF THIS MONTH AT THE LATEST COINCIDING WITH THE NEW BUDGET INVESTORS ALSO WERE WORRIED THAT THE GOVERNMENT MIGHT CUT TAX CREDITS ON DIVIDENDS AS IT DID IN THE MARCH BUDGET THIS MOVE SAVES THE GOVERNMENT MONEY BUT REDUCES RETURNS FOR PENSION FUNDS AND OTHER TAXEXEMPT INVESTORS THE 100STOCK INDEX HAD AN INTRADAY LOSS OF 231 POINTS ABOUT MIDDAY AND WAS STILL DOWN ABOUT 20 POINTS JUST 90 MINUTES BEFORE THE SESSION ENDED NEWS OF A TELEPHONE PRICE WAR IN BRITAIN INITIALLY PUSHED SOME TELECOMMUNICATIONS STOCKS DOWN BUT THEY ROSE AFTER INVESTORS DECIDED THIS WAS A POSITIVE MOVE IN THE FINAL HOUR WHEN SELLING SUBSIDED A BUYING WAVE KICKED IN AND MADE UP FOR MUCH OF THE LOST GROUND IN FRANKFURT THE DAX 30STOCK INDEX GAVE UP 688 POINTS TO 206212 AFTER TRADING IN A BF JUST 394 POINTS ONLY SIX DAX STOCKS ROSE WHILE 24 FELL THE DECLINES WERE VIEWED AS A REACTION TO FRIDAY'S 3054POINT SURGE AS WELL AS LOWER LIQUIDITY BECAUSE OF THE VARIOUS HOLIDAY CLOSINGS IN EUROPE RATHER THAN ANY PRESSURE TO SELL THE MARKET DIDN'T GET ANY IMMEDIATE BOOST FROM EUROPEAN COMMUNITY LEADERS' CHOICE FRIDAY OF FRANKFURT AS THE SITE FOR THE NEW EUROPEAN MONETARY INSTITUTE WHICH IS EXPECTED TO EVOLVE INTO THE EC CENTRAL BANK BY THE END OF THE DECADE IN AMSTERDAM SHARE PRICES ENDED MOSTLY HIGHER BUOYED BY A STRONGER US DOLLAR AND OPTIONSRELATED BUYING AS WELL AS A POSITIVE REPORT BY US PURCHASING MANAGERS IN STOCKHOLM EQUITIES DECLINED FROM RECORD TERRITORY IN THE FINAL 30 MINUTES THE MARKET OPENED ON A POSITIVE NOTE AND REMAINED HIGHER MOST OF THE SESSION BUT FELL IN THE LATE AFTERNOON MAINLY BECAUSE OF AN ABSENCE OF FOREIGN INVESTORS IN ZURICH PRICES ENDED LITTLE CHANGED AFTER RECOVERING FROM A MIDAFTERNOON SELLOFF TRIGGERED BY LARGE SELL ORDERS BY INSTITUTIONAL INVESTORS IN SYDNEY STOCKS' SURGE CONTINUED AND PRICES SET A SIXYEAR HIGH AS AUSTRALIAN AND OVERSEAS INVESTORS WERE SPURRED BY POSITIVE ECONOMIC DATA INCLUDING A NARROWED CURRENTACCOUNT DEFICIT AND AN INCREASE IN RESIDENTIAL BUILDING APPROVALS IN SEPTEMBER IN HONG KONG THE MARKET SIZZLED TAKING THE HANG SENG INDEX UP 30010 POINTS OR 32 TO 962919 ITS FIRST CLOSE ABOVE 9600 AFTER A 35 JUMP LAST FRIDAY THE INDEX IS UP A HUGE 74 FOR THIS YEAR ON BUYING BY OVERSEAS INVESTORS MONDAY THE INDEX SHOT UP TO A RECORD INTRADAY PEAK OF 9710 JUST AFTER THE OPENING THEN SLIPPED BUT FOUND SUPPORT ABOVE 9600 DESPITE LATE PROFITTAKING FUTURES CONTRACTS HELD TO A SHARP PREMIUM OVER THE HANG SENG INDICATING LONGERTERM BULLISHNESS ABOUT THE MARKET AND GIVING BROKERS A STRONG INCENTIVE TO BUY STOCKS IN SINGAPORE SHARES ENDED HIGHER DESPITE VOLATILE DEALINGS CENTERED ON SINGAPORE TELECOMMUNICATIONS' DEBUT TELECOM OFFERED IN A PRIVATIZATION AT WHAT WAS CONSIDERED AN EXTRAVAGANT 360 SINGAPORE DOLLARS US227 A SHARE LEAPED TO A HIGH OF S5 SHORTLY AFTER THE OPENING PUSHED UP BY JAPANESE INVESTORS AND SINGAPORE BROKERS BUT IT SETTLED DOWN TO HOVER AROUND S4 FOR THE REST OF THE DAY AND ENDED AT S414 AS HOPEDFOR BUYING BY EUROPEAN INSTITUTIONAL INVESTORS DIDN'T MATERIALIZE AND PROFITTAKING SET IN THE UTILITY ACCOUNTED FOR 18 OF THE SESSION'S VOLUME TELECOM'S CLOSING PRICE PUT THE PRICE/EARNINGS RATIO AT 56 AND VALUED THE COMANY AT A STAGGERING S6314 BILLION US398 BILLION IN SEOUL STOCKS RALLIED 15 SUPPORTED BY WIDESPREAD OPTIMISM ABOUT BRISK EXPORTS TO PULL THE SOUTH KOREAN ECONOMY OUT OF ITS DOLDRUMS IN WELLINGTON SHARE PRICES SOARED 18 AS THE MARKET APPEARED TO HAVE SHAKEN OFF NERVOUSNESS AHEAD OF THE SATURDAY ELECTION IN NEW ZEALAND AND TO HAVE BET ON VICTORY BY THE RULING NATIONAL PARTY GOVERNMENT WITH ITS POLICIES TO RESTRAIN SPENDING AND KEEP INFLATION TAME IN BANGKOK STOCKS JUMPED 52 TO A RECORD LED BY THE BANKING SECTOR WHICH ROCKETED 7 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 9311020025 931102 TECHNOLOGY BRIEF MYLAN LABORATORIES INC FDA APPROVAL IS RECEIVED TO SELL NEW GENERIC DRUGS MYLAN LABORATORIES INC PITTSBURGH SAID IT RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO SELL TWO NEW GENERIC PRODUCTS FOR TREATING ANGINA AND HYPERTENSION MYLAN'S NADOLOL TABLETS ARE THE FIRST GENERIC EQUIVALENT OF BRISTOLMYERS SQUIBB CO'S CORGARD USED IN THE TREATMENT OF ANGINA CORGARD REACHED 175 MILLION IN SALES IN 1992 ACCORDING TO INDUSTRY ANALYSTS NADOLOL WILL BE AVAILABLE IN DOSES OF 20 40 AND 80 MILLIGRAMS THE SECOND DRUG A TABLET COMBINING ATENOLOL AND CHLORTHALIDONE IS A COMBINATION BETA BLOCKER AND DIURETIC USED IN THE TREATMENT OF HYPERTENSION AND WILL BE AVAILABLE IN TWO DIFFERENT COMBINATIONS OF THE TWO DRUGS IT IS ONE OF SEVERAL GENERIC EQUIVALENTS OF ICI PHARMA'S TENORETIC ICI PHARMA IS A UNIT OF THE UK'S IMPERIAL CHEMICAL INDUSTRIES PLC MYLAN MADE THE ANNOUNCEMENT DURING TRADING IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE MYLAN SHARES CLOSED AT 3175 UP 225 OR 76 9311020024 931102 TECHNOLOGY & HEALTH COMPAQ CUTS PRICES FOR SOME COMPUTERS APPLE SETS REBATES A WALL STREET JOURNAL NEWS ROUNDUP COMPAQ COMPUTER CORP RESPONDING TO PRICE CUTS BY ITS BIGGEST COMPETITORS SAID IT IS TRIMMING PRICES BY AS MUCH AS 23 ON SOME OF ITS DESKTOP AND NOTEBOOK COMPUTERS THE CUTS WHICH HOUSTONBASED COMPAQ ATTRIBUTED TO THE INTRODUCTION YESTERDAY OF 46 NEW MODELS COMES LESS THAN TWO WEEKS AFTER APPLE COMPUTER INC AND INTERNATIONAL BUSINESS MACHINES CORP ANNOUNCED AGGRESSIVE PRICING MOVES OF THEIR OWN BOB BAUER A COMPAQ MARKETING MANAGER PLAYED DOWN THE PROSPECT OF A RENEWED PRICE WAR AS THE PERSONALCOMPUTER INDUSTRY ENTERS THE CHRISTMAS BUYING SEASON INDEED MR BAUER SAID THE CUTS LIKELY WILL BE THE LAST FOR COMPAQ THIS YEAR IN DESKTOP MODELS WE'RE PRETTY MUCH SET THROUGHOUT THE REST OF THE YEAR HE SAID COMPAQ'S CUTS INCLUDE REDUCTIONS UP TO 23 ON THE COMPANY'S DESKPRO/M MACHINES BASED ON INTEL CORP'S PENTIUM MICROPROCESSOR MR BAUER SAID THE CUTS REFLECT INCREASED AVAILABILITY OF PENTIUM CHIPS WHICH WERE IN SHORT SUPPLY FOLLOWING THEIR INTRODUCTION THIS SUMMER OTHER PRICE CUTS INCLUDE 16 REDUCTIONS FOR COMPAQ'S PROLINEA LINE AND REDUCTIONS OF UP TO 35 FOR SOME NOTEBOOK ACCESSORIES SEPARATELY APPLE SAID IT WOULD OFFER REBATES OF UP TO 500 ON SELECT MACINTOSH POWERBOOK COMPUTERS AND ACCESSORIES THROUGH JAN THE MOVE COMES AFTER OFFICIALS OVERESTIMATED DEMAND FOR THE LINE OF PORTABLE COMPUTERS RESULTING IN UNSOLD INVENTORY THE POWERBOOK DUO A LINE OF COMPUTERS DESIGNED TO DOCK IN A DESKTOP UNIT WAS A PARTICULAR SALES DISAPPOINTMENT THE LARGEST REBATE 500 IS OFFERED ON THE POWERBOOK DUO 230 4/160 MAKING APPLE'S RETAIL PRICE FOR THE MODEL 2679 REBATES OF 100 ARE OFFERED ON ACCESSORIES SUCH AS THE POWERBOOK MINI DOCK 9311020023 931102 HIGH COURT TO HEAR CHALLENGE TO POLICY OF CALIFORNIA ON TAXING MULTINATIONALS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT AGREED TO HEAR A CHALLENGE TO CALIFORNIA'S AGGRESSIVE APPROACH TO TAXING MULTINATIONAL COMPANIES THE CASE COULD HAVE MAJOR FINANCIAL IMPLICATIONS FOR CORPORATIONS BASED BOTH IN THE US AND ABROAD CALIFORNIA OFFICIALS HAVE WARNED THAT AN UNFAVORABLE HIGHCOURT RULING COULD FORCE THE STATE TO REFUND AS MUCH AS 4 BILLION TO CORPORATIONS THE HIGH COURT'S DECISION TO HEAR THE CASE WAS SURPRISING FOR TWO REASONS FIRST THE JUSTICES REJECTED THE ADVICE OF THE CLINTON ADMINISTRATION WHICH HAD RECOMMENDED AGAINST TAKING UP THE CASE SECOND THE HIGH COURT UNEXPECTEDLY SUGGESTED IN ITS BRIEF ORDER THAT IT MAY RECONSIDER ITS 1983 RULING UPHOLDING CALIFORNIA'S TAX POLICY WHEN IT WAS APPLIED TO UNITS OF USBASED MULTINATIONALS THE 1983 RULING DIDN'T ADDRESS THE TAX POLICY FOR FOREIGNBASED COMPANIES THE COURT'S ACTION PUTS PRESIDENT CLINTON IN A POLITICAL BIND DURING HIS CAMPAIGN HE PROMISED CALIFORNIA OFFICIALS THAT IF ELECTED HE WOULD SIDE WITH THEM IN THE DISPUTE THE REAGAN AND BUSH ADMINISTRATIONS OPPOSED THE CALIFORNIA APPROACH AS UNCONSTITUTIONAL AND LIKELY TO DAMAGE US TRADE RELATIONS IF THE CLINTON ADMINISTRATION GOES AHEAD AND FILES A PROCALIFORNIA BRIEF ON THE MERITS OF THE CASE IT RISKS ANGERING MAJOR AMERICAN TRADE PARTNERS THAT OBJECT TO THE STATE'S TAX POLICY FOR EXAMPLE ENGLAND WHICH AT ONE TIME THREATENED RETALIATION AGAINST US COMPANIES IF CALIFORNIA'S TAX POLICY WASN'T STRUCK DOWN HAS FILED ITS OWN BRIEF IN THE CASE EVEN THOUGH THE JUSTICE DEPARTMENT FILED A BRIEF AT THE COURT'S REQUEST ON WHETHER THE JUSTICES SHOULD HEAR THE CASE THE ADMINISTRATION ISN'T OBLIGED TO FILE A BRIEF ON THE MERITS A SENIOR DEPARTMENT OFFICIAL SAID LATE YESTERDAY THAT THE ADMINISTRATION HASN'T DECIDED WHAT IF ANYTHING TO DO NEXT AND THAT THERE WOULD BE INTERNAL DISCUSSIONS ON THAT QUESTION IN COMING DAYS BRAD SHERMAN THE CHAIRMAN OF CALIFORNIA'S TAX COMMISSION CALLED ON THE ADMINISTRATION TO FILE A STRONG BRIEF ON THE MERITS FAVORING THE STATE THENGOV CLINTON MADE IT VERY CLEAR THAT HE WOULD TAKE A PROCALIFORNIA POSITION NOT JUST ON PROCEDURAL MATTERS BUT ON THE MERITS OF THE CASE IF IT CAME TO THAT MR SHERMAN SAID A SUPREME COURT LOSS WOULD BE FISCALLY TWICE AS DISASTROUS AS THE RECENT FIRES IN THE STATE HE ADDED THE WHITE HOUSE THOUGHT IT HAD AVOIDED THIS PROBLEM BY SUCCESSFULLY PRESSURING CALIFORNIA LAWMAKERS TO AMEND THE STATE'S TAX LAW TO ALLOW FOREIGN MULTINATIONALS TO SIDESTEP THE CONTROVERSIAL RULES AFTER THE AMENDMENT WAS ENACTED LAST MONTH THE JUSTICE DEPARTMENT FILED A BRIEF SAYING THAT THE SUPREME COURT DIDN'T NEED TO HEAR THE CASE BECAUSE IT HAD BECOME MOOT BUT BARCLAYS BANK PLC THE BRITISH MULTINATIONAL THAT HAD FILED SUIT AGAINST CALIFORNIA PERSISTED IN ASKING THE JUSTICES TO INTERVENE BARCLAYS SAID THE HIGH COURT SHOULD STRIKE DOWN THE UNDERLYING LAW SO THAT MULTINATIONALS CAN SEEK REFUNDS OF TAXES PAID BEFORE THE RECENT AMENDMENT IN ADDITION BARCLAYS ARGUED THAT THE AMENDMENT COULD BE RESCINDED AND THAT OTHER STATES COULD STILL ADOPT THE CALIFORNIA APPROACH AT LEAST SIX OTHER STATES IDAHO MONTANA NORTH DAKOTA ALASKA TENNESSEE AND UTAH USE A SIMILAR APPROACH AT LEAST IN PART TO CALIFORNIA'S ACCORDING TO BARCLAYS AT ISSUE IS CALIFORNIA'S POLICY OF TAXING A PORTION OF THE WORLDWIDE INCOME OF MULTINATIONAL COMPANIES INCLUDING THAT OF PARENT COMPANIES AND OTHER AFFILIATES BASED ON A FORMULA REFLECTING THE AMOUNT OF BUSINESS THE COMPANIES DO IN CALIFORNIA IN CONTRAST THE FEDERAL GOVERNMENT AND MOST OTHER STATES TREAT A US SUBSIDIARY OF A MULTINATIONAL AS A SEPARATE CORPORATION AND TAX ONLY THE INCOME OF THAT UNIT THE RECENT CHANGE IN CALIFORNIA LAW ALLOWS UNITS OF FOREIGN MULTINATIONALS TO BE TREATED AS SEPARATE COMPANIES STATE COURTS IN CALIFORNIA UPHELD THE SOCALLED WORLDWIDE UNITARY TAXING SCHEME BARCLAYS HAS CONTENDED THAT CALIFORNIA'S APPROACH CONTRADICTS THE POLICY OF THE US GOVERNMENT AND UNCONSTITUTIONALLY INTERFERES WITH FOREIGN COMMERCE THE SUPREME COURT ALSO SAID THAT IT WOULD CONSOLIDATE THE BARCLAYS CASE WITH A CHALLENGE TO THE CALIFORNIA LAW FILED BY COLGATEPALMOLIVE CO A MULTINATIONAL BASED IN NEW YORK THAT DOES BUSINESS IN CALIFORNIA TAX LAWYERS SAID THIS UNEXPECTED ACTION COULD MEAN THE JUSTICES ARE RETHINKING THEIR 1983 DECISION WHICH UPHELD APPLICATION OF CALIFORNIA'S WORLDWIDE UNITARY METHOD TO USBASED MULTINATIONALS IN A SEPARATE BRIEF COLGATEPALMOLIVE ASSERTED THAT THE CONSTITUTION REQUIRES THAT USBASED COMPANIES THAT CONDUCT INTERNATIONAL BUSINESS NOT BE TAXED MORE AGGRESSIVELY THAN FOREIGNBASED COMPANIES THAT DO BUSINESS IN THE US IN OTHER ACTION YESTERDAY THE HIGH COURT FOLLOWED THE CLINTON ADMINISTRATION'S RECOMMENDATION TO SET ASIDE A LOWERCOURT RULING THAT AFFIRMED THE CHILDPORNOGRAPHY CONVICTION OF A PENNSYLVANIA MAN THE ADMINISTRATION SOFTENING AN EARLIER GOVERNMENT POSITION ARGUED THAT THE FEDERAL APPEALS COURT IN PHILADELPHIA HAD APPLIED TOO TOUGH AN INTERPRETATION OF THE FEDERAL CHILDPORNOGRAPHY LAW KNOX VS US 9311020022 931102 WHO'S NEWS GENETICS INSTITUTE INC GENETICS INSTITUTE INC CAMBRIDGE MASS PATRICK GAGE WAS NAMED TO THE NEWLY CREATED POSITION OF CHIEF OPERATING OFFICER AT THIS BIOTECHNOLOGY CONCERN DR GAGE 51 YEARS OLD WILL MANAGE DAYTODAY OPERATIONS HE JOINED GENETICS INSTITUTE IN NOVEMBER 1989 AS SENIOR VICE PRESIDENT AND HAS BEEN AN EXECUTIVE VICE PRESIDENT SINCE JANUARY 1990 THE COMPANY ALSO NAMED EVEN C CLARK SENIOR VICE PRESIDENT DISCOVERY RESEARCH A NEWLY CREATED POSITION DR CLARK 43 HAD BEEN VICE PRESIDENT RESEARCH SINCE APRIL 1989 9311020021 931102 STRUCTURED FINANCE' REHABILITATES DICEY DEALS BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL BANKRUPTCY PROCEEDINGS AND FEDERAL LAWSUITS DON'T SOUND LIKE THE ELEMENTS OF A TRIPLEA CREDIT RATING BUT THEY POSE NO PROBLEM IN THE FASTGROWING LITTLEUNDERSTOOD CORNER OF WALL STREET KNOWN AS STRUCTURED FINANCE STRUCTURED FINANCE IS TURNING INTO THE HALFWAY HOUSE OF WALL STREET WHERE EVEN THE MOST WRETCHED CREDIT CAN BE REHABILITATED IN WALL STREET TERMS THIS TYPE OF FINANCING IS BASED ON ASSIGNING CASHFLOW PRIORITIES FROM A POOL OF UNDERLYING ASSETS WITNESS THE 100 MILLION DEAL KIDDER PEABODY & CO IS PUTTING TOGETHER TO RESURRECT FORMER REALESTATE SYNDICATOR CRAIG HALL THANKS TO KIDDER A GENERAL ELECTRIC CO UNIT MR HALL WHO EMERGED FROM PERSONAL BANKRUPTCYCOURT PROCEEDINGS IN MARCH WILL BE ABLE TO BORROW AT ABOUT THE SAME INTEREST RATE PAID BY THE HIGHEST CREDITQUALITY BORROWERS IN THE COUNTRY MR HALL IS PIECING TOGETHER REMNANTS OF HIS FORMER REALESTATE EMPIRE ONCE VALUED AT 3 BILLION THE BIGGEST PIECE IS A 499 STAKE IN A PARTNERSHIP THAT AIMS TO PLACE AN ISSUE OF MORTGAGEBACKED SECURITIES SOON WITH A PRIVATE INVESTOR IN ALL LIKELIHOOD AN INSURANCE COMPANY IN THE EARLY 1980S MR HALL AND HIS HALL FINANCIAL GROUP RAISED MILLIONS OF DOLLARS FROM INDIVIDUAL INVESTORS IN LIMITED PARTNERSHIPS AND BORROWED ADDITIONAL MONEY TO BUY PROPERTIES IN THE SOUTHWEST AFTER 1986 MOST OF THE PARTNERSHIPS WERE FORCED TO RESTRUCTURE BY FALLING REALESTATE VALUES AND TOO MUCH DEBT MANY DEFAULTED ON THEIR DEBT AND FILED FOR COURT PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE IN MARCH MR HALL AGREED TO PAY THE RESOLUTION TRUST CORP 955 MILLION TO BUY BACK 250 MILLION IN NOTES SECURED BY 30 PROPERTIES OWNED BY SOME OF THE LIMITED PARTNERSHIPS FOR WHICH HE WAS GENERAL PARTNER THIS PAYMENT SETTLED CLAIMS BY THE RTC TOTALING 384 MILLION AND BROUGHT AN END TO CONTENTIOUS LITIGATION BETWEEN THE GOVERNMENT AND MR HALL IT WAS A VERY EXCELLENT SETTLEMENT SAYS ONE OF THE RTC OFFICIALS WHO NEGOTIATED THE DEAL IT IS OUR FEELING THAT MR HALL LEFT MONEY ON THE TABLE WELL MAYBE ACCORDING TO THE PROSPECTUS FOR A PRIVATE PLACEMENT KIDDER EXPECTS TO COMPLETE BY MIDNOVEMBER THE PROPERTIES RELEASED BY THE RTC WERE WORTH PERHAPS 30 MILLION MORE THAN THE FEDERAL GOVERNMENT SETTLED FOR HERE'S HOW THE DEAL IS EXPECTED TO WORK TO PAY THE RTC MR HALL HAD TO BORROW 80 MILLION FROM A KIDDER AFFILIATE HE INTENDS TO REPAY THE FUNDS BY SELLING SECURITIES BACKED BY 25 MORTGAGES ON APARTMENT COMPLEXES INCLUDING 20 ON PROPERTIES WON BACK FROM THE GOVERNMENT WHEN MORTGAGES ARE USED TO BACK SECURITIES OR SECURITIZED IN WALL STREET LINGO THE CASH FLOW FROM THE PROPERTIES IS CHANNELED INTO SLICES KNOWN AS TRANCHES WHOSE CREDIT QUALITY CAN RANGE FROM TRIPLEA TO JUNK BORROWERS LOWER THEIR COST BY ASSIGNING AS MUCH OF THAT CASH FLOW AS POSSIBLE INTO THE LOWYIELDING TRIPLEA TRANCHE SECURITIZING COMMERCIAL REAL ESTATE SUCH AS APARTMENTS AND OFFICE BUILDINGS IS THE NEW RAGE AND NO WONDER BANKS ARE RELUCTANT TO LEND AGAINST REAL ESTATE AND INSURANCE COMPANIES ARE HAMPERED BY NEW CAPITAL RULES IN FACT SO MANY DEALS HAVE BEEN FLOODING THE MARKET THAT THE CREDITRATING SERVICES ARE SWAMPED BUT MR HALL'S PLAN RAN INTO TURBULENCE WHEN HE VISITED FITCH INVESTORS SERVICE INC THE CREDITRATING SERVICE KIDDER PICKED TO GET A COVETED TRIPLEA RATING FOR MOST OF THE BONDS IN THE PROPOSED DEAL KIDDER DIDN'T SEEK RATINGS FROM STANDARD & POOR'S CORP OR MOODY'S INVESTORS SERVICE INC WITH A TRIPLEA THE PARTNERSHIP WILL PAY ONLY ONE PERCENTAGE POINT MORE THAN TREASURYS MATURING IN 7 1/2 YEARS FITCH FELT UNCOMFORTABLE GRANTING A TRIPLEA RATING TO THE DEAL AS LONG AS MR HALL STILL CONTROLLED THE PROPERTIES AMONG FITCH'S CONCERNS WERE PUBLISHED REPORTS OF MR HALL'S FAILURE TO PAY CHILD SUPPORT WHICH RESULTED IN A BRIEF STAY IN A DALLAS JAIL AS WELL AS ALLEGATIONS BY THE RTC OF SELFDEALING INCLUDING A 1 MILLION DIVIDEND PAID TO MR HALL BY ONE OF HIS FAILING THRIFTS MR HALL SAYS THE TEXAS SUPREME COURT EXONERATED HIM ON THE CHILDSUPPORT ISSUE AND THAT ALL ALLEGATIONS AGAINST HIM WERE IN CIVIL COURT AND HAVE BEEN SETTLED BUT HE NEVERTHELESS WAS OBLIGED TO RELINQUISH CONTROL OF THE PARTNERSHIPS TO GET THE PLANNED DEAL DONE THERE WAS NO ALTERNATIVE HE SAYS WE TOLD KIDDER THAT NO ENTITY CONTROLLED BY HIM WOULD BE ACCEPTABLE AS THE SINGLE BORROWER SAYS TERRY ESQUIVEL WHO WORKED ON THE DEAL AT FITCH STILL THE 499 INTEREST MR HALL AND HIS LIMITED PARTNERS OWN OF THE PARTNERSHIP CONTROLLING THE PROPERTIES IS VALUED AT PERHAPS 19 MILLION AND THE NEW DEAL WILL POSTPONE THE DAY OF RECKONING FOR THE OLD LIMITED PARTNERSHIP INVESTORS BY DEFERRING THE DAY THE PROPERTIES ARE SOLD BECAUSE THE PROPERTIES ARE WORTH FAR LESS THAN THE PARTNERSHIPS PAID SELLING THEM WOULD HAVE NEGATIVE TAX CONSEQUENCES FOR INVESTORS WHO HAVE BEEN COLLECTING TAX BENEFITS BASED ON INFLATED VALUES THE PROPERTIES IN THE KIDDER DEAL REPRESENT ONEFOURTH OF THE REAL ESTATE LIMITED PARTNERSHIP ASSETS STILL MANAGED BY HALL FINANCIAL OF DALLAS SAYS MR HALL IF THERE'S ONE CLEARCUT WINNER IN THIS DEAL IT'S KIDDER THIS IS A VERY PROFITABLE DEAL FOR KIDDER SAYS STEVEN SEEBERG MANAGING DIRECTOR OF REALTY CAPITAL FUNDING LTD WHICH SECURITIZES PROPERTIES BY ONE ESTIMATE KIDDER STANDS TO MAKE AS MUCH AS 15 MILLION FROM FEES AND THE GAP BETWEEN MORTGAGE INTEREST RATES AND THE COUPON ON THE SECURITIES THAT'S ON TOP OF KIDDER'S 8 MILLION EQUITY STAKE IN THE PROPERTIES AND THE INTEREST THE FIRM WILL RECEIVE ON ANY PIECE OF THE DEAL IT CAN'T SELL KIDDER WON'T COMMENT ON THE DEAL 9311020020 931102 LETTERS TO THE EDITOR SOMALIA INCOHERENCY AND MISSION CREEP' IN YOUR OCT 6 POLITICS & POLICY REPORT ON PRESIDENT CLINTON BEING DIVERTED FROM DOMESTIC POLICY BY FOREIGN CRISES YOU QUOTE CLINTON PRESS SECRETARY DEE DEE MYERS SAYING THAT WE'VE BEEN IN THE PROCESS OF DRAWING DOWN US TROOPS IN SOMALIA SINCE MAY UNFORTUNATELY MS MYERS IS SHADING THE TRUTH ON MAY 10 US TROOPS IN SOMALIA NUMBERED 4220 ON AUG 30 THEY NUMBERED 4513 ON OCT 4 THEY NUMBERED 4697 THOSE NUMBERS CERTAINLY DON'T INDICATE A DRAWDOWN MS MYERS HAS A TOUGH JOB SPEAKING FOR AN ADMINISTRATION THAT HASN'T SUCCESSFULLY ARTICULATED A COHERENT FOREIGN POLICY EARLIER THIS YEAR SHE SAID THAT OUR MISSION IN SOMALIA HADN'T CHANGED BECAUSE THE MISSION ALWAYS HAD INCLUDED THE GOAL OF NATIONBUILDING THAT IS JUST PLAIN FALSE FORMER PRESIDENT BUSH CLEARLY LIMITED HIS OBJECTIVES TO SHORTTERM HUMANITARIAN RELIEF AND US FORCES UNDER HIS LEADERSHIP DELIBERATELY AVOIDED TAKING SIDES IN SOMALIA'S INTERNECINE CONFLICT WHEN I RETURNED FROM A CONGRESSIONAL FACTFINDING MISSION TO SOMALIA IN JANUARY I AND MY COLLEAGUES WERE CONVINCED THAT OUR MISSION WAS ON THE VERGE OF COMPLETION LITTLE DID WE KNOW THAT THE INCOMING PRESIDENT WOULD SUCCUMB TO MISSION CREEP IN SEARCH OF UTOPIAN GLOBALIST AIMS THAT HAVE NOTHING TO DO WITH THE NATIONAL INTEREST AND LITTLE DID WE KNOW THAT HIS SECRETARY OF DEFENSE WOULD IGNORE REQUESTS FROM HIS GENERALS FOR ARMORED PERSONNEL CARRIERS THAT WOULD HAVE HELPED PROTECT OUR TROOPS NOW SOME 23 AMERICANS LIE DEAD EIGHT CAPTURED AND SOME 12 DOZEN INJURED DEE DEE MYERS SHOULD NEVER HAVE BEEN PUT IN THE POSITION OF HAVING TO EXPLAIN THOSE NUMBERS 9311020019 931102 TECHNOLOGY BELLSOUTH SEEKS TO USE AT&TMCCAW PACT TO ENTER NEW MARKET ATLANTA BELLSOUTH CORP URGED FEDERAL REGULATORS TO USE THE MERGER OF AMERICAN TELEPHONE & TELEGRAPH CO AND MCCAW CELLULAR COMMUNICATIONS INC AS A STEPPINGSTONE TO ALLOW THE BABY BELLS TO COMPETE IN THE LONGDISTANCE TELEPHONE MARKET THE ATLANTABASED REGIONAL BABY BELL FILED ITS COMMENTS WITH THE FEDERAL COMMUNICATIONS COMMISSION ON THE LAST DAY OF PUBLIC COMMENTS ON THE AT&TMCCAW MERGER WHILE NOT SEEKING TO BLOCK THE MERGER BELLSOUTH SAID THAT UNTIL REGIONAL PHONE COMPANIES ARE ALLOWED TO COMPETE IN THE MARKETS FOR LONGDISTANCE SERVICE AND EQUIPMENT MANUFACTURE THE FCC SHOULD IMPOSE CERTAIN RESTRICTIONS ON AT&T'S CELLULAR OPERATIONS WITHOUT SUCH RESTRICTIONS BELLSOUTH ASSERTS AT&T WILL BE ABLE TO USE THE MCCAW CONNECTION TO GET BACK IN THE LOCAL TELEPHONE BUSINESS BELLSOUTH WANTS THE FCC TO REQUIRE THAT AT&T GIVE ITS CELLULAR CUSTOMERS ACCESS TO OTHER LONGDISTANCE PROVIDERS JUST AS BELLSOUTH'S CELLULAR CUSTOMERS CAN CHOOSE BETWEEN AT&T OR OTHER LONGDISTANCE CARRIERS THE BABY BELL ALSO WANTS AT&TMCCAW'S CELLULAR OPERATIONS TO BE SEPARATED FROM ITS OTHER OPERATIONS AS BELLSOUTH IS REQUIRED TO DO SINCE 1984 A FEDERAL COURT HAS BEEN OVERSEEING THE REGULATION OF WHICH BUSINESSES THE BABY BELLS CAN ENTER THROUGH ITS COMMENT ON THE AT&TMCCAW DEAL HOWEVER BELLSOUTH HOPES TO AVOID A PROTRACTED COURT BATTLE IN ITS BID TO ENTER THE LONGDISTANCE MARKETS BELLSOUTH AND FOUR OTHER BABY BELLS HAVE PETITIONED THE COURT TO ALLOW THEM TO PROVIDE LONGDISTANCE SERVICE WE HAVE REPEATEDLY POINTED OUT THAT IT WILL BE A LONG TIME DOWN THE ROAD BEFORE WIRELESS WILL BECOME COMPETITIVE WITH LOCAL PHONE SERVICE AN AT&T SPOKESMAN SAID 9311020018 931102 INTERNATIONAL THAI CONSUMER PRICE INDEX BANGKOK THAILAND THAILAND'S CONSUMER PRICE INDEX INCREASED 31 DURING THE FIRST NINE MONTHS OF THIS YEAR COMPARED WITH A 45 RISE DURING THE SAME PERIOD LAST YEAR AN OFFICIAL OF THE BUSINESS ECONOMICS DEPARTMENT SAID PRICES FOR NONFOOD PRODUCTS JUMPED 44 WHILE FOOD PRODUCT PRICES INCREASED ONLY 14 DURING THE PERIOD 9311020017 931102 IF POOR CAN CHOOSE WILL THEY PICK URBAN HOSPITALS BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA FOR 101 YEARS GRADY MEMORIAL HOSPITAL HERE HAS OPENED ITS DOORS TO THE AREA'S INDIGENT NOW NUMBERING SOME 350000 PEOPLE WHETHER OR NOT THEY COULD AFFORD TO PAY THE 20STORY COMPLEX LOCATED IN THE HEART OF DOWNTOWN AND WITHIN EASY REACH OF THE POORER SOUTH SIDE ALWAYS TEEMS WITH ACTIVITY ITS EMERGENCY ROOM BUSTLING WITH TRAUMA CASES ACCIDENT VICTIMS AND PEOPLE WHO USE IT AS A FIRSTSTOP DOCTOR'S OFFICE BUT NOW GRADY AND OTHER HOSPITALS LIKE IT NATIONWIDE MAY FIND THEMSELVES IN THE UNCUSTOMARY POSITION OF HAVING TO COMPETE FOR PATIENTS UNDER PRESIDENT CLINTON'S PLAN TO REFORM THE NATION'S HEALTHCARE SYSTEM PEOPLE WHO HAD NO INSURANCE TO PAY FOR MEDICAL CARE WILL NOW THEORETICALLY AT LEAST BE ON A PAR WITH THE PAYING POPULATION AND THAT MANY HEALTHCARE EXPERTS SAY WILL MAKE THE POOR AN ATTRACTIVE MARKET FOR PRIVATE SUBURBAN HOSPITALS ALL OF THESE PRIVATE HOSPITALS ARE GOING TO SUDDENLY START WANTING THESE PATIENTS SAYS ART BOLL A CONSULTANT WITH DELOITTE & TOUCHE ON PAPER THEY'LL LOOK AS PROFITABLE AS ANYONE ELSE BY MOST ACCOUNTS THE CLINTON HEALTH PLAN ORIGINALLY LOOKED LIKE A GIFT HORSE FOR LARGE URBAN HOSPITALS WHICH HAVE LONG TREATED THE BULK OF THE NATION'S 37 MILLION UNINSURED MANY OF THESE HOSPITALS HAVE ENDURED A PRECARIOUS EXISTENCE SURVIVING ON PUBLIC MONEY BECAUSE OF THEIR SUPPORT OF THE INDIGENT POPULATION SAYS HOWARD WALL AN ATTORNEY IN NASHVILLE TENN WHO SPECIALIZES IN HEALTH CARE ON THE SURFACE THEY WOULD APPEAR TO BENEFIT MR WALL SAYS THE PEOPLE WHO THEY HAD BEEN TREATING FOR FREE WOULD NOW BE ABLE TO PAY BUT WITH THAT ABILITY TO PAY MAY ALSO COME A FAIR DEGREE OF CHOICE AND THAT IS WHERE INNERCITY HOSPITALS MAY START TO FEEL THE PINCH ALL OF A SUDDEN THE POOR CAN GO WHERE THEY WANT MR WALL SAYS IT'LL BE A QUESTION OF WHETHER A HOSPITAL WHICH IN THE PAST HASN'T HAD TO MARKET ITSELF BECAUSE IT HAS BEEN THE ONLY STOP FOR THE UNINSURED WILL NOW BE ABLE TO COMPETE EFFECTIVELY WITH HOSPITALS THAT HAVE BEEN MARKETING THEIR SERVICES FOR A LONG TIME INDEED SINCE MARCH MR SNELL HAS BEEN MEETING WITH NEW EMPLOYEES EVERY MONDAY MORNING FOR A PEP TALK ON PATIENT SATISFACTION AND HOW TO BE MORE CUSTOMER SENSITIVE AS PART OF THAT EFFORT GRADY EXECUTIVES HAVE INSTALLED AN EMPLOYEEEVALUATION SYSTEM THAT FOCUSES PRIMARILY ON PERFORMANCE EMPLOYEE PROMOTIONS ARE NOW IN PART BASED ON HOW WELL EMPLOYEES RESPOND TO PATIENT REQUESTS AND ANY LAYOFFS WILL BE BASED ON PERFORMANCE AS WELL AS SENIORITY IN ADDITION GRADY HAS UNDERTAKEN A 320 MILLION BUILDING PROJECT TO BE COMPLETED IN 1995 THAT INCLUDES A WOMEN'S HEALTH CENTER ADDITIONAL SATELLITE FACILITIES AND A NEW 40000SQUAREFOOT EMERGENCY ROOM THAT IS FOUR TIMES THE SIZE OF THE OLD ONE AT JACKSON MEMORIAL HOSPITAL IN MIAMI HOSPITAL OFFICIALS SAY THEY ARE LOOKING AT ADVERTISING AND DIRECTMAIL CAMPAIGNS AND REINVIGORATING SOME OF OUR COMMUNITY OUTREACH PROGRAMS IN AN EFFORT TO MARKET THE HOSPITAL MORE AGGRESSIVELY WE KNOW WE'RE NOW GOING TO NEED TO TAKE OUR MESSAGE TO FOLKS LIKE NEVER BEFORE SAYS MARK COHEN A SPOKESMAN AT JACKSON MEMORIAL BUT THE HOSPITAL WHICH TREATS A LARGE PERCENTAGE OF MIAMI'S POOR INCLUDING MANY RECENT IMMIGRANTS IS ALSO DEPENDING ON A CERTAIN AMOUNT OF PATIENT LOYALTY THE TRADITIONAL JACKSON PATIENTS WHO HAVE ALWAYS COME HERE WILL REMEMBER THAT PEOPLE OF ANY RACE OR ETHNICITY OR FINANCIAL BACKGROUND HAVE BEEN WELCOMED MR COHEN SAYS THEY'LL KNOW WE HAVE A WORK FORCE THAT MIRRORS THE COMMUNITY AND A SUPPORT STAFF THAT UNDERSTANDS THE LANGUAGE AND CULTURE CRACK BABIES INDEED WHILE SOME POORER PATIENTS MAY DEFECT TO PRIVATE SUBURBAN HOSPITALS MANY WILL STILL FIND SUCH FACILITIES DISTANT FROM METROPOLITAN BUS LINES AND SUBWAYS OUT OF REACH AND WHILE SUBURBAN HOSPITALS ARE MORE EXPERIENCED AT MARKETING AND ADVERTISING THEY MAY FIND THEMSELVES STRUGGLING TO BECOME FAMILIAR WITH SOME OF THE ISSUES AND PROBLEMS THAT ARE PECULIAR TO THE INDIGENT FOR INSTANCE SOME HEALTH ANALYSTS SUGGEST INNERCITY HOSPITALS HAVE MORE EXPERIENCE DEALING WITH CRACK BABIES AND OTHER ILLS THAT CAN RESULT FROM POVERTY DRUG ADDICTION OR DISFRANCHISEMENT TO GET A FOOT IN THE DOOR MANY SUBURBAN HOSPITALS MAY BEGIN ESTABLISHING LARGE URBAN PRIMARYHEALTH CLINICS AS SATELLITES SAYS MR WALL THE NASHVILLE ATTORNEY OR IN A COMPLETE SHIFT IN BUSINESS STRATEGY THEY MAY SEEK TO JOIN FORCES WITH URBAN HOSPITALS TO ACCESS THE POOR POPULATION HE SAYS BEING PLACED IN THE NEW POSITION OF SUDDENLY HAVING TO FIGHT FOR PATIENTS ISN'T THE ONLY PROBLEM URBAN HOSPITALS HAVE DISCOVERED IN THE CLINTON HEALTH PLAN THE ADMINISTRATION EXPECTS TO GET 238 BILLION FOR THE HEALTH PROGRAM FROM CUTS IN MEDICAID AND MEDICARE BETWEEN NOW AND THE TURN OF THE CENTURY MANY URBAN HOSPITALS ARE NOW FRETTING THAT HOW THAT'S ACCOMPLISHED COULD WELL PUT THEM AT RISK THERE ARE LARGER CONCENTRATIONS OF MEDICAID AND MEDICARE PATIENTS LIVING IN URBAN AND RURAL POOR AREAS SAYS JAMES TALLON PRESIDENT OF THE UNITED HOSPITAL FUND IN NEW YORK CITY I'M WORRIED ABOUT WHERE THESE CUTS WILL FALL ANOTHER PLACE WHERE CUTS WILL PROBABLY FALL IS IN THE AREA OF REIMBURSEMENT TO TEACHING HOSPITALS FOR MEDICAL EDUCATION HERE AGAIN URBAN HOSPITALS WILL PROBABLY BE HIT SINCE MANY URBAN HOSPITALS ALSO SERVE AS TEACHING HOSPITALS IF THE FINAL HEALTH PLAN THAT'S PASSED BY CONGRESS CUTS FUNDS FOR MEDICAL EDUCATION SIGNIFICANTLY URBAN HOSPITALS WILL BE HARD PRESSED TO MAINTAIN THEIR STAFFING LEVELS OF RESIDENTS AND INTERNS ACCORDING TO KENNETH RASKE PRESIDENT OF THE GREATER NEW YORK HOSPITAL ASSOCIATION THESE RESIDENTS HAVE BEEN A SOURCE OF CARE FOR MANY PEOPLE IN POOR AREAS SAYS MR TALLON OF THE UNITED HOSPITAL FUND THE PRESIDENT'S PLAN IS A STEP IN THE RIGHT DIRECTION BUT THE DEVIL IS IN THESE DETAILS THE ANSWER TO THE QUESTION OF WHETHER URBAN HOSPITALS WOULD THRIVE OR EVEN SURVIVE UNDER THE PRESIDENT'S PLAN PROBABLY LIES WITH THE PATIENTS WHO HAVE USED THESE HOSPITALS FOR YEARS AT GRADY WHERE EMERGENCYROOM PATIENTS ROUTINELY COMPLAIN ABOUT LONG LINES THERE STILL APPEARS TO BE A FEELING THAT THE HOSPITAL HAS BEEN THERE WHEN I NEEDED IT SAYS MARY DAVIS 63 YEARS OLD A RETIRED HOUSEKEEPER WHO WAITED IN THE EMERGENCY ROOM ONE RECENT MORNING WHILE HER GRANDSON WAS TREATED YOU'VE ALWAYS GOT TO SIT AROUND HERE FOR HOURS MS DAVIS SAYS BUT AT LEAST THEY TREAT YOU 9311020016 931102 CREDIT MARKETS PRICE OF 30YEAR TREASURY DROPS NEARLY A POINT AMID FRESH SIGNS OF STRONGER ECONOMIC ACTIVITY BY THOMAS D LAURICELLA AND POMESH SAHI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FRESH INDICATIONS THAT THE ECONOMY IS PICKING UP STEAM WHILE THE MARKET IS PREPARING TO ABSORB A HUGE AMOUNT OF NEW SUPPLY SENT INVESTORS SCURRYING FOR COVER IN THE BOND MARKET THE MARKET'S BELLWETHER SECURITY THE 30YEAR TREASURY BOND DECLINED NEARLY ONE POINT YESTERDAY TO A PRICE OF 102 28/32 THAT TRANSLATED INTO A LOSS OF ABOUT 10 FOR A BOND WITH A 1000 FACE AMOUNT THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF PRICE ROSE TO 603 THE LOSSES WERE WORSE AMONG SHORT AND INTERMEDIATETERM TREASURYS THE LATEST TWOYEAR NOTES FOR EXAMPLE ENDED AT A PRICE OF 99 16/32 FROM 99 24/32 WHILE THEIR YIELD ROSE TO 412 FROM 399 THE HIGHEST LEVEL IN THREE MONTHS THE CATALYST FOR YESTERDAY'S ROUT OCCURRED AT MIDMORNING WHEN THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT REPORTED THAT ITS INDEX OF MANUFACTURING ACTIVITY ROSE MORE THAN EXPECTED TO 538 IN OCTOBER FROM 497 IN SEPTEMBER A READING ABOVE 50 GENERALLY REFLECTS AN INCREASE IN BUSINESS ACTIVITY WHILE A READING BELOW 50 DEPICTS A CONTRACTING INDUSTRIAL SECTOR THE READING ALONG WITH A GOVERNMENT REPORT SHOWING THAT CONSTRUCTION SPENDING HAS BEEN STRONGER OVER THE LAST THREE MONTHS THAN WAS THOUGHT WAS ANOTHER IN A SERIES OF FIGURES PAINTING A HEALTHIER PICTURE OF ECONOMIC ACTIVITY THERE ARE DEFINITELY SIGNS THAT THE ECONOMY IS PICKING UP SAID MARILYN SCHAJA MONEY MARKET ECONOMIST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP SUCH NEWS TENDS TO DISHEARTEN BOND INVESTORS WHO WORRY THAT A STRONGER ECONOMY COULD LEAD TO HIGHER INFLATION AND INTEREST RATES CONDITIONS THAT ERODE THE VALUE OF BONDS THE MIDMORNING ECONOMIC NEWS SERVED TO EXTEND DECLINES THAT HAD BEGUN OVERNIGHT TRADERS NOTED THERE HAD BEEN SOME OVERSEAS SELLING AND IT ADDED TO THE MOMENTUM ON THE DOWNSIDE SAID WILLIAM PIKE MANAGER OF GOVERNMENT SECURITIES TRADING AT CHEMICAL SECURITIES AMID THE NEWS OF STRONGER ECONOMIC ACTIVITY THE MARKET HAS BEEN STRUGGLING TO ATTRACT BUYERS FOR A FLOOD OF NEW ISSUANCE DEALERS HAD A TOUGH TIME FINDING INVESTOR INTEREST IN LAST WEEK'S TWOYEAR AND FIVEYEAR NOTE AUCTIONS AND THE BILL SECTOR HAS BEEN SWAMPED WITH NEW SUPPLY THE TREASURY DEPARTMENT HAS INCREASED THE SIZE OF THE WEEKLY THREEMONTH AND SIXMONTH BILL OFFERINGS BY 44 BILLION SINCE MIDSEPTEMBER AND TOMORROW THE TREASURY WILL ANNOUNCE THE TERMS OF NEXT WEEK'S THREEYEAR AND 10YEAR NOTE AUCTIONS THAT WILL MAKE UP THE QUARTERLY REFUNDING AUCTIONS ANALYSTS BELIEVE THEIONS COMBINED COULD EASILY TOP 28 BILLION THE PURCHASING MANAGERS REPORT COMBINED WITH WAITING FOR THE REFUNDING ANNOUNCEMENT WAS NOT A GOOD RECIPE SAID JOHN COSTAS MANAGER OF GOVERNMENT SECURITIES TRADING AT CS FIRST BOSTON CORP PEOPLE CONTINUE TO BE CONCERNED ABOUT ECONOMIC FUNDAMENTALS BEING STRONGER THAN WE HAVE BEEN EXPERIENCING AND THE POTENTIAL FOR SUPPLY ESPECIALLY 10YEAR AND UNDER NOTABLE IN THE MARKET'S PERFORMANCE YESTERDAY AS WELL AS OVER THE LAST TWO WEEKS WAS ITS INABILITY TO STAGE ANY SORT OF MEANINGFUL REBOUND WHAT'S IMPORTANT IS THAT WHEN THE MARKET WENT DOWN WE NEVER REALLY BOUNCED UP SAID MR PIKE TRADERS SAID THE MARKET'S FAILURE TO STAGE ANY SIGNIFICANT RECOVERY REFLECTS A TURN IN SENTIMENT INVESTORS ARE NO LONGER VIEWING LOWER PRICES AS BUYING OPPORTUNITIES INSTEAD THEY ARE LOOKING TO SELL INTO ANY STRENGTH IN THE MARKET FOR THE FIRST TIME THIS YEAR SOME PEOPLE HAVE ALTERED THEIR CORE STRATEGIES TO BE SHORT THE MARKET AND TO SELL INTO ANY SHORTTERM RALLIES SAID MR COSTAS A SHORT SALE IS A BET THAT PRICES WILL FALL IN WHICH A TRADER SELLS A BORROWED SECURITY IN THE HOPE OF BUYING IT BACK AT A LOWER PRICE FOR A PROFIT MEANWHILE THE TREASURY SOLD 2689 BILLION OF SHORTTERM BILLS YESTERDAY AT ITS REGULAR WEEKLY AUCTION THE AVERAGE DISCOUNT RATE ON THE 1346 BILLION OF 13WEEK BILLS WAS 311 WHILE THE AVERAGE DISCOUNT RATE ON 26WEEK BILLS WAS SET AT 325 THE TREASURY SAID THAT THE AVERAGE DISCOUNT RATE ON THE 13WEEK BILLS WAS THE HIGHEST SINCE THE AVERAGE OF 314 AT THE JUNE 7 AUCTION THE AVERAGE DISCOUNT RATE ON THE 26WEEK BILLS MATCHED THE AVERAGE RATE SET AT THE AUG 2 AUCTION THE TREASURY ALSO IS EXPECTED TO SELL ONEYEAR BILLS WITHIN THE NEXT TWO WEEKS AND TO ANNOUNCE THE SALE OF AT LEAST ONE AND PERHAPS TWO CASHMANAGEMENT BILLS THE ADDITIONAL SALES ARE NEEDED TO HELP MEET A LARGE INTEREST PAYMENT 234 BILLION TO PUBLIC DEBTHOLDERS AND ANOTHER 26 BILLION TO THE FEDERAL RESERVE DETAILS OF THE AUCTIONS ARE EXPECTED TO BE ANNOUNCED THIS WEEK HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED NOV 4 THE 13WEEK BILLS MATURE FEB 3 1994 AND THE 26WEEK BILLS MATURE MAY 5 1994 PRICES OF MUNICIPAL BONDS FOLLOWED TREASURYS LOWER YESTERDAY RAISING THE POSSIBILITY THAT PRICES MAY NOT REBOUND EVEN IF ISSUANCE SLOWS LATE LAST WEEK MANY MARKET PARTICIPANTS BELIEVED THAT THE MUNICIPAL MARKET WOULD BE HELPED BY A DECLINE TO 3 BILLION OR SO FROM THE MORE THAN 4 BILLION OF SECURITIES PRICED LAST WEEK BUT PRICES OPENED LOWER AND CONTINUED TO FALL THROUGHOUT THE DAY WHEN DEALINGS ENDED PRICES OF MOST LONGTERM MUNICIPAL BONDS WERE BETWEEN 1/4 AND 3/4 POINT LOWER THE MARKET FELT TERRIBLE TODAY SAID WILLIAM O'KEEFE TRADING MANAGER AT MORGAN STANLEY DESPITE THIS SESSION'S LOSSES HE SAID IT'S STILL POSSIBLE THAT LACK OF SUPPLY MIGHT HELP US A LITTLE IN THE DAYS AHEAD NEW YORK CITY BONDS WERE HIT PARTICULARLY HARD TRADERS SAID THE SELLING SEEMED TO BE PART OF THE GENERAL MARKET ACTIONNOT LIQUIDATION BEFORE TODAY'S MAYORAL ELECTION THE YIELD FOR THE CITY'S 5375 OF 2019 SERIES C GENERAL OBLIGATION BONDS ROSE TO 576 FROM 575 AT THE CLOSE OF FRIDAY'S TRADING ANY ELECTIONRELATED TRANSACTIONS IN NEW YORK CITY BOND DEALINGS PROBABLY WILL WAIT UNTIL THE RACE RESULTS ARE KNOWN SAID A NEW YORK TRADING MANAGER THE CORPORATE DEBT MARKET WAS DREARY WITH NO ISSUERS AND FEW RAYS OF HOPE FOR AN INCREASE IN ACTIVITY INVESTMENTGRADE CORPORATE SECURITIES TRADED LOWER IN LOCKSTEP WITH TREASURYS AMID LIGHT VOLUME TRADING OF SEASONED HIGHYIELD ISSUES WAS DESCRIBED AS VERY QUIET WITH EXTREMELY LOW VOLUME AS EXPECTED MOODY'S INVESTORS SERVICE YESTERDAY RELEASED A DOWNBEAT ANNUAL REPORT ON THE US ELECTRICUTILITY INDUSTRY THE REPORT SAID THAT UTILITIES' ABILITY TO PRODUCE LOWCOST POWER AND THE REGULATORY RESPONSE TO COMPETITION WILL DRIVE INCREASED CREDIT RISK FOR BONDHOLDERS LAST WEEK STANDARD & POOR'S DOWNGRADED THE RATINGS OF SEVERAL ELECTRIC UTILITY ISSUERS BUT UNLIKE S&P'S STATEMENTS MOODY'S REMARKS CAUSED NO WIDENING IN YIELD SPREADS BETWEEN TREASURY ISSUES AND THOSE OF UTILITIES TRADERS SAID MOODY'S ALSO SAID THE LONGTERM FINANCIAL OUTLOOK FOR COMMERCIAL AIRCRAFT MANUFACTURERS ISN'T BRIGHT TODAY DEAN WITTER DISCOVER IS EXPECTED TO RAISE 250 MILLION THROUGH A 12YEAR OFFERING THE NONCALLABLE NOTES ARE EXPECTED TO BE RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P ALSO THE GTE NORTH UNIT OF GTE IS EXPECTED TO BRING 250 MILLION OF SIXYEAR DEBENTURES VIA COMPETITIVE BID TODAY PLAYERS SEE LITTLE ACTION AHEAD OF FRIDAY'S RELEASE OF THE MONTHLY NONFARM PAYROLL REPORT THE MOST IMPORTANT US ECONOMIC INDICATOR SCHEDULED THIS WEEK MOST MORTGAGE SECURITIES FELL SHARPLY ALONG WITH US TREASURYS IN LIGHT TRADING YESTERDAY BUT LOSSES WERE SMALLER THAN THOSE OF GOVERNMENT SECURITIES FANNIE MAE 6 1/2 SECURITIES WERE OFF 22/32 TRADING AT 99 28/32 FOR A YIELD OF 652 THE COMPARABLEMATURITY TREASURY 10YEAR NOTE WAS OFF 28/32 AT 101 18/32 TO YIELD 5 SCHEDULED FOR NOVEMBER DELIVERY THE YIELD DIFFERENCE BETWEEN THE TWO WAS 98 BASIS POINTS DOWN A BASIS POINT FROM LATE FRIDAY AND OFF FOUR BASIS POINTS FROM THURSDAY'S SESSION BOTH MARKETS WERE LOWER AFTER ACTIVITY BEGAN HERE WITH THE TREASURY MARKET INHERITING LOWER PRICES FROM OVERSEAS TRADING THE MARKETS DROPPED AGAIN AFTER RELEASE OF THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT OCTOBER INDEX BUT THE SALE OF SECURITIES BY MORTGAGE BANKERS INTO THE SECONDARY MORTGAGE MARKET WAS SHORTLIVED THE FEDERAL HOME LOAN MORTGAGE CORP RELEASED FIGURES YESTERDAY ON PREPAYMENTS ON SECURITIES FROM MIDSEPTEMBER TO MIDOCTOBER AMONG 30YEAR PAPER THE 7 TO 8 COUPONS SHOWED GAINS OF 16 TO OVER 100 ON A CONSTANTPREPAYMENTRATE BASIS HIGHER COUPONS WERE LITTLE CHANGED 9311020015 931102 WHO'S NEWS TURNER IS TRYING TO ATTRACT DAWN STEEL TO MAJOR POSITION AT PICTURES DIVISION BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA TURNER BROADCASTING SYSTEM INC SEEKING TO BECOME A MUCH BIGGER FORCE IN FILMMAKING IS TRYING TO PERSUADE HOLLYWOOD PRODUCER DAWN STEEL TO TAKE A MAJOR ROLE IN THE COMPANY ACCORDING TO INDIVIDUALS CLOSE TO TURNER TED TURNER CHAIRMAN AND CHIEF EXECUTIVE IS LOOKING FOR A HIGHPROFILE EXECUTIVE TO HEAD HIS TURNER PICTURES DIVISION ACCORDING TO ONE PERSON CLOSE TO THE NEGOTIATIONS BUT MS STEEL IS SAID TO BE MORE INTERESTED IN A KEY PRODUCTION ROLE AT TURNER RATHER THAN AN EXECUTIVE POSITION MS STEEL ONE OF THE INDUSTRY'S MOST PROMINENT PRODUCERS IS THE FORMER PRESIDENT OF COLUMBIA PICTURES NOW A UNIT OF SONY CORP BRINGING IN MS STEEL OR AN EXECUTIVE OF EQUAL VISIBILITY HOLLYWOOD EXECUTIVES SAID LIKELY WOULD SIGNAL A MORE AGGRESSIVE FILM PRODUCTION SCHEDULE FOR TURNER BROADCASTING EVEN THOUGH MR TURNER IS BELIEVED TO BE LOOKING FOR A FILM DIVISION EXECUTIVE IT WASN'T IMMEDIATELY CLEAR WHETHER MS STEEL WOULD BE WILLING TO IMMERSE HERSELF AGAIN IN THE ADMINISTRATIVE DUTIES SUCH A JOB WOULD ENTAIL A FACTOR IN HER DECISION TO LEAVE COLUMBIA THE CURRENT PRESIDENT OF TURNER PICTURES DENNIS MILLER MIGHT RUN THE BUSINESS SIDE OF THE DIVISION WHILE MS STEEL COULD HEAD UP FILMMAKING ACCORDING TO A PERSON CLOSE TO THE NEGOTIATIONS SHE WANTS TO BE A PRODUCER HE SAID MS STEEL WASN'T AVAILABLE FOR COMMENT BUT DURING THE TOUR FOR HER CURRENT BOOK THEY CAN KILL YOU BUT THEY CAN'T EAT YOU AN INSIDER'S LOOK AT HOLLYWOOD SHE HAS SAID THAT HER PRIMARY INTEREST IS BEING A HANDSON PRODUCER OF MOVIES OFFICIALS AT TURNER DECLINED COMMENT MR TURNER BY MOST ACCOUNTS HAS BECOME SMITTEN WITH THE MOVIE BUSINESS AND IS LOOKING FOR WAYS TO FURTHER INVOLVE HIMSELF IN THE INDUSTRY HIS COMPANY IS IN THE PROCESS OF CLOSING THE ACQUISITIONS OF TWO MOVIE STUDIOS NEW LINE CINEMA CORP AND CASTLE ROCK ENTERTAINMENT AND IN SEPTEMBER EXPLORED A BID FOR PARAMOUNT COMMUNICATIONS INC HE HAS EVEN CONSIDERED BUILDING A PRODUCTION STUDIO NEAR HIS CORPORATE HEADQUARTERS IN ATLANTA WHILE NEW LINE DISTRIBUTED GETTYSBURG AND WILL PROBABLY DISTRIBUTE FUTURE TURNER FILMS TURNER PICTURES AND NEW LINE WILL OPERATE SEPARATELY FROM CASTLE ROCK OFFICIALS OF THAT COMPANY HAVE SAID IN THE PAST MS STEEL WHO IS 47 YEARS OLD BECAME THE FIRST WOMAN TO RUN A MAJOR HOLLYWOOD STUDIO WHEN SHE ASSUMED THE PRESIDENCY OF COLUMBIA IN 1987 BEFORE THAT SHE WAS HEAD OF PRODUCTION AT PARAMOUNT PICTURES WHERE SHE OVERSAW THE FILMING OF FLASHDANCE TOP GUN AND FATAL ATTRACTION AMONG OTHERS AFTER LEAVING COLUMBIA SHORTLY AFTER ITS SALE TO SONY MS STEEL LINKED UP WITH WALT DISNEY CO AS AN INDEPENDENT PRODUCER MAKING HONEY I BLEW UP THE KID AND COOL RUNNINGS WHICH IS CURRENTLY IN THEATERS SHE IS ALSO PRODUCING SISTER ACT 2 AND THE POWER OF NO AT DISNEY MS STEEL IS ALSO PRODUCING A FILM CALLED 12 BAR BLUES FOR SAVOY PICTURES ENTERTAINMENT INC IT ISN'T CLEAR HOW THESE PRODUCTION AGREEMENTS WOULD BE AFFECTED IF MS STEEL TOOK A POST AT TURNER PEOPLE FAMILIAR WITH MS STEEL'S THINKING SAID SHE IS INTERESTED IN LINKING UP WITH TURNER ONLY IF SHE CAN STRIKE A PRODUCTION DEAL SIMILAR TO ONE FORMER FOX INC STUDIO CHIEF JOE ROTH HAS WITH DISNEY THAT GIVES HIM AN UNUSUAL MEASURE OF AUTONOMY ALTHOUGH DISNEY WILL FULLY FINANCE ALL HIS MOVIES MR ROTH HAS THE RIGHT TO PUT UP TO 30 FILMS INTO PRODUCTION WITHOUT DISNEY'S APPROVAL SUBJECT TO VARIOUS BUDGETARY CEILINGS HE WILL ALSO SHARE SUBSTANTIALLY IN THE GROSS REVENUES GENERATED BY THE MOVIES INSIDERS SAID 9311020014 931102 REVCO ACQUIRES 7 FOX STORES TWINSBURG OHIO REVCO DS INC SAID IT ACQUIRED SEVEN FOX DRUG STORES IN THE GREATER CLEVELAND AREA TERMS WEREN'T DISCLOSED THE COMPANY SAID THE STORES WILL BE OPERATED AS REVCO DRUG STORES WITH THE ADDITION REVCO SAID IT WILL OPERATE 111 DRUG STORES IN THE GREATER CLEVELAND AREA 9311020013 931102 LEISURE & ARTS TOP 10 SINGLES / ALBUMS DATA SYSTEMS AND SOUNDSCAN INC AND BASED ON A NATIONAL SAMPLE OF RETAIL REPORTS AND RADIO PLAY LISTS 9311020012 931102 INTERNATIONAL BRIEF NORTH WEST WATER GROUP PLC THAILAND CONTRACT IS SIGNED FOR WASTEWATER PROJECT UK UTILITY NORTH WEST WATER GROUP PLC SAID IT HAS SIGNED A 160 MILLION 237 MILLION CONTRACT WITH THAILAND TO PROVIDE A WASTEWATER NETWORK AND TREATMENT FACILITY FOR 700000 PEOPLE IN CENTRAL BANGKOK THE FOURYEAR CONTRACT TO DESIGN BUILD AND OPERATE THE PROJECT IS THE FIRST STAGE OF A PROGRAM TO TACKLE THE CITY'S POLLUTION PROBLEMS NORTH WEST WATER SAID IN A RELEASE THE WATER COMPANY HAS A 50 STAKE IN THE CONSORTIUM THAT WON THE CONTRACT ITS PARTNERS ARE SIAM SYNTECH CONSTRUCTION SINOTHAI ENGINEERING & CONSTRUCTION CO AND OTV BANGKOK CURRENTLY HAS NO SIGNIFICANT WASTEWATER TREATMENT FACILITIES RAW SEWAGE FROM A RAPIDLY EXPANDING POPULATION IS DISCHARGED DIRECTLY INTO THE CITY'S EXTENSIVE NETWORK OF CANALS AND THEN INTO THE CHAO PHRAYA RIVER 9311020011 931102 MCDONNELL HAD RECORD EARNINGS IN THIRD PERIOD AEROSPACE CONCERN SWUNG TO 142 MILLION PROFIT REVERSING 1992 WOES BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MCDONNELL DOUGLAS CORP REPORTED RECORD THIRDQUARTER NET INCOME AND PREDICTED STRONG FOURTHQUARTER RESULTS DESPITE CONTINUING SHRINKAGE IN ITS DEFENSE AND COMMERCIAL JETLINER MARKETS THE NATION'S LARGEST AEROSPACE COMPANY SAID NET WAS 142 MILLION OR 362 A SHARE INCLUDING A ONETIME TAX GAIN THE LATEST RESULTS WHICH THE COMPANY SAID WOULD HAVE SET A RECORD EVEN WITHOUT THE TAX GAIN REFLECT A SHARP REVERSAL OF LAST YEAR'S PROBLEMS WITH DEBT AND PROFITABILITY ON SUCH MAJOR PROGRAMS AS THE C17 MILITARY TRANSPORT PLANE A YEAR EARLIER THE ST LOUIS COMPANY RECORDED A LOSS OF 42 MILLION OR 109 A SHARE AFTER ACCOUNTING ADJUSTMENTS FOR RETIREE HEALTHCARE BENEFITS REVENUE FELL 12 TO 344 BILLION FROM 389 BILLION THE NEWS SENT THE COMPANY'S STOCK SOARING 4875 OR 47 TO CLOSE AT 98125 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE PRICE IS UP MORE THAN 30 SINCE THE COMPANY ANNOUNCED ITS SECONDQUARTER RESULTS IN JULY MCDONNELL'S CHIEF FINANCIAL OFFICER HERBERT J LANESE PREDICTED THAT IN ADDITION TO A STRONG FOURTHQUARTER THE COMPANY WOULD SURPASS DEBTREDUCTION AND CASHGENERATION TARGETS SET IN JANUARY IT HAS BEEN SUCH A STRUGGLE FOR SO LONG SAID MR LANESE IN AN INTERVIEW BUT IT REALLY IS PAYING OFF HE PREDICTED THAT THE COMPANY WILL HAVE A GREAT 1994 IN FINANCIAL PERFORMANCE MCDONNELL DOUGLAS'S PREVIOUS RECORD THIRDQUARTER PROFIT CAME IN 1984 WHEN IT REPORTED 88 MILLION IN EARNINGS RESULTS FOR THE RECENT QUARTER INCLUDED A NET GAIN OF 41 MILLION OR 105 A SHARE FROM CHANGES IN TAX OBLIGATIONS FAVORABLE RESOLUTION OF SOME ISSUES WITH THE INTERNAL REVENUE SERVICE BROUGHT THE GAIN THE COMPANY SAID BUT IT WAS PARTLY OFFSET BY CHANGES IN TAX LAWS MCDONNELL DOUGLAS ALSO TOOK A 51 MILLION PRETAX CHARGE AGAINST EARNINGS THE CHARGE MASKED IMPROVED OPERATING RESULTS AT ITS MISSILE SPACE AND ELECTRONICS UNIT THE CHARGE WAS DUE TO DIFFICULTIES THAT INCLUDED FUNDING PROBLEMS ON CLASSIFIED AND UNCLASSIFIED PROGRAMS MR LANESE NOTED THAT THE COMPANY HAD CUT ANOTHER 369 MILLION FROM AEROSPACERELATED DEBT IN THE THIRDQUARTER REDUCING DEBT BY 29 SINCE THE BEGINNING OF THE YEAR TO 197 BILLION THE COMPANY AIMS TO REDUCE DEBT TO LESS THAN 18 BILLION BY THE END OF THIS YEAR PARTLY TO REVIVE ITS FALLEN CREDIT RATING SINCE THE BEGINNING OF THE YEAR MCDONNELL DOUGLAS ALSO HAS RAISED 800 MILLION IN CASH WITH 600 MILLION FROM OPERATIONS SAID MR LANESE WHO HAS PROMISED TO GENERATE 1 BILLION BY YEAR'S END THE COMPANY'S LONG BEACH CALIF COMMERCIALAIRCRAFT UNIT MANAGED THIRDQUARTER PRETAX EARNINGS OF 16 MILLION COMPARED WITH 37 MILLION A YEAR EARLIER DESPITE A 36 PLUNGE IN REVENUE MR LANESE SAID THE COMPANY'S MD11 WIDEBODY JETLINER WHICH TOOK 3 BILLION IN CASH TO DEVELOP AND BUILD DURING THE PAST THREE YEARS HAS BEEN GENERATING CASH ABOVE DEVELOPMENT COSTS IN ALL THREE QUARTERS THIS YEAR HE NOTED THAT THE COMPANY MAY SOON COMMIT 150 MILLION OR MORE FOR COMMERCIALAIRPLANE FINANCING THE SOMETIMESTROUBLED C17 PROGRAM WHICH RACKED UP 450 MILLION IN LOSSES IN THE FIRST NINE MONTHS OF 1992 HAS PRODUCED AN 8 MILLION PROFIT SO FAR THIS YEAR THE COMPANY SAID PENTAGON OFFICIALS ARE EXPECTED SOON TO CUT TOTAL US ORDERS FOR THE C17 TO 40 FROM 120 MILITARY OFFICIALS ARE ALSO IN THE MIDDLE OF TALKS WITH THE COMPANY AIMED AT RESOLVING 16 BILLION IN CLAIMS THE COMPANY HAS AGAINST THE GOVERNMENT FOR ADDED WORK ORDERS FOR THE PLANE MCDONNELL DOUGLAS HAS SAID IT COULD TAKE AS MUCH AS 450 MILLION IN CHARGES FOR THE C17 PROGRAM IN THE FUTURE DEPENDING ON THE OUTCOME OF THOSE TALKS MR LANESE SAID WHAT MATTERS MOST IS THAT PURCHASES PROCEED FOR NOW SO THAT THE AIRCRAFT HAS A CHANCE TO PROVE ITSELF AND WARRANT FUTURE PURCHASES ALL THIS SPECULATION ABOUT WHETHER YOU BUY 40 OR 80 OR 100 C17S I THINK IS OFF THE MARK RIGHT NOW HE SAID DESPITE ALL THE GOOD NEWS HOWEVER CHAIRMAN JOHN MCDONNELL WARNED IN A MESSAGE TO EMPLOYEES YESTERDAY THAT THE COMPANY STILL FACES SIEGELIKE CONDITIONS IN THE AEROSPACE INDUSTRY 9311020010 931102 WRONG WAY TO FACE THE FUTURE NUCLEAR THREAT BY FRANK J GAFFNEY JR THE DEFENSE DEPARTMENT'S MAJOR REVIEW OF US NUCLEAR WEAPONS POLICY ANNOUNCED ON FRIDAY WITH A SUSPICIOUS LACK OF FANFARE IS SUPPOSED TO BE A BOTTOM UP ANALYSIS OF ALL ASPECTS OF THE US NUCLEAR DETERRENT POSTURE TO JUDGE BY FRIDAY'S MUTED PRESS CONFERENCE AND THE OUTLOOK OF MANY CLINTON DEFENSE OFFICIALS HOWEVER THE STUDY IS LIKELY TO BE AN EXERCISE IN RATIONALIZATION THAT BEARS NO RESEMBLANCE TO A GENUINELY FRESH LOOK AT THE VEXING QUESTIONS OF NUCLEAR POLICY IN PARTICULAR THREE URGENT PROBLEMS SEEM LIKELY TO BE NEGLECTED THE US IS GOING OUT OF THE NUCLEAR WEAPONS BUSINESS AT THE PRESS CONFERENCE ASSISTANT SECRETARY OF DEFENSE ASHTON CARTER NOTED THE LONGTERM NATURE OF THE STUDY WE'RE GOING TO BE LOOKING AT WHAT MIGHT EVOLVE IN THE NEXT 10 TO 20 YEARS BECAUSE THE FORCE STRUCTURE WE DETERMINE TODAY IS THE ONE WE'LL BE LIVING WITH 10 TO 20 YEARS FROM NOW THIS IS TRUE ENOUGH AS FAR AS IT GOES BUT IT ASSUMES THAT THE US WILL BE ABLE TO FIELD EFFECTIVE NUCLEAR WEAPONS A DECADE OR TWO FROM NOW AN ASSUMPTION WORTH EXAMINING CAREFULLY SEVERAL KEY POLICY DECISIONS BY THE BUSH AND CLINTON ADMINISTRATIONS HAVE AMOUNTED TO A UNILATERAL NUCLEAR FREEZE THEY INCLUDE DECLARING AN OPENENDED CESSATION OF NUCLEAR TESTING SUSPENDING THE PRODUCTION OF NUCLEAR WEAPONS CLOSING KEY FACILITIES IN THE INDUSTRIAL INFRASTRUCTURE AND ALLOWING THE HEMORRHAGE OF SKILLED PERSONNEL FROM THE ENERGY DEPARTMENT'S LABORATORIES AND WEAPONS COMPLEX PERHAPS MOST IMPORTANT THE DEFENSE DEPARTMENT HAS FAILED TO ENSURE A STEADY DOMESTIC SUPPLY OF THE RADIOACTIVE GAS TRITIUM UNLESS NEW SOURCES FOR TRITIUM ARE FOUND WITHIN THE NEXT DECADE THERE WILL BE NO US VIABLE NUCLEAR WEAPONS IN THE FORCE STRUCTURE 10 TO 20 YEARS FROM NOW THE FUTURE NUCLEAR THREAT IS NOT CONFINED TO THE MANY DANGEROUS ACTORS AROUND THE WORLD THAT ARE GOING NUCLEAR OR ACQUIRING NEW LESS COSTLY WEAPONS OF MASS DESTRUCTION RUSSIA CONTINUES TO POSE A SERIOUS THREAT ANNOUNCING THE NUCLEAR STUDY DEFENSE SECRETARY LES ASPIN SPOKE RATHER WISTFULLY OF THE OLD SOVIET THREAT CONTENDING THAT WHILE VERY DANGEROUS IT HAD DEVELOPED A CERTAIN COMFORT LEVEL BUT NO ONE SHOULD TAKE ANY COMFORT FROM THE STATUS OF THE FORMER SOVIET NUCLEAR ARSENAL TODAY THE RUSSIANS CONTINUE TO MANUFACTURE NUCLEAR WEAPONS AND WEAPONSRELATED MATERIAL NOTABLY PLUTONIUM TRITIUM AND HIGHLY ENRICHED URANIUM THEY CONTINUE TO DEVELOP NEW GENERATIONS OF OFFENSIVE NUCLEAR DELIVERY SYSTEMS INCLUDING MOBILE INTERCONTINENTAL BALLISTIC MISSILES AND THEY CONTINUE TO CONDUCT EXERCISES INVOLVING MASSIVE NUCLEAR ATTACKS AGAINST THE US MOREOVER ACCORDING TO THE HEAD OF THE RUSSIAN MINISTRY OF ATOMIC ENERGY VIKTOR MIKHAILOV THE RUSSIANS POSSESS FAR LARGER STOCKS OF NUCLEAR WEAPONS THAN HAS BEEN ASSUMED BY WESTERN INTELLIGENCE THEY ALSO REPORTEDLY CONTINUE TO OPERATE A DOOMSDAY MACHINE CAPABLE OF AUTOMATICALLY LAUNCHING ATTACKS IF FALLIBLE SENSORS SUGGEST THAT NUCLEAR WEAPONS HAVE BEEN USED AGAINST RUSSIA THERE IS PRECIOUS LITTLE COMFORT TO BE TAKEN FROM THESE FACTS ESPECIALLY IN THE FACE OF ENORMOUS UNCERTAINTY ABOUT THE EXACT STATUS OF FORMER SOVIET NUCLEAR ARMS AND ABOUT THE RELIABILITY OF THE COMMAND AND CONTROL ARRANGEMENTS THAT GOVERN THEM IT WOULD BE RECKLESS INDEED IF THE PENTAGON'S NUCLEAR STRATEGY REVIEW WERE TO FOCUS ON EMERGING NUCLEAR THREATS AND IGNORE THE ABIDING RUSSIAN THREAT BECAUSE IT MAY BE POLITICALLY INCONVENIENT OR INCORRECT THE US IS ESSENTIALLY ELIMINATING THE OPTION OF STRATEGIC DEFENSE IT SEEMS UNLIKELY THAT MR ASPIN'S REVIEW WILL ACKNOWLEDGE THE ENORMOUS CONTRIBUTION THAT STRATEGIC DEFENSES COULD MAKE TO US SECURITY EVEN BEFORE MR ASPIN'S BOTTOM UP BUDGET REVIEW EARLIER THIS YEAR THE CLINTON ADMINISTRATION HAD DECIDED TO ELIMINATE WORK ON A TERRITORIAL DEFENSE AGAINST MISSILE ATTACK AND ITS BLIND IDEOLOGICAL ATTACHMENT TO THE 1972 ANTIBALLISTIC MISSILE TREATY SEEMS TO ENSURE THAT THE US WILL NOT BE FIELDING MISSILE DEFENSES ANY TIME SOON IN SUM THE ADMINISTRATION IS IGNORING TECHNOLOGIES THAT MIGHT REDUCE THE RISKS OF US UNILATERAL NUCLEAR DISARMAMENT JUST AT THE TIME OTHER NATIONS ARE AGGRESSIVELY PURSUING NUCLEAR OPTIONS INSTEAD OF ADDRESSING THESE PROBLEMS THE ASPIN STUDY SEEMS LIKELY TO BE PREOCCUPIED WITH SECONDARY ISSUES MOST OF THESE ARE THE HOBBYHORSES OF CLINTON POLITICAL APPOINTEES POLICIES THAT WERE REJECTED IN THE PAST BY BOTH REPUBLICAN AND DEMOCRATIC ADMINISTRATIONS BUT THAT NOW WILL BE GIVEN A NEW LEASE ON LIFE SUCH SECONDORDER AND SECONDRATE NOTIONS INCLUDE ADOPTING A NO FIRST USE POLICY CONCERNING NUCLEAR WEAPONS ENACTING A PERMANENT COMPREHENSIVE TEST BAN DECLARING A FORMALIZED NUCLEAR FREEZE AFFECTING NOT ONLY TESTING BUT PRODUCTION AND AT LEAST SOME RELATED RESEARCH AND DEVELOPMENT INSTITUTING WHOLESALE CUTS IN US NUCLEAR FORCES KEEPING A LARGE PERCENTAGE OF US BALLISTIC MISSILE SUBMARINES IN PORT WHILE CONFINING THOSE AT SEA TO NEGOTIATED SANCTUARIES AND SEPARATING LANDBASED WARHEADS FROM THEIR MISSILES IF ADOPTED THESE STEPS WOULD UNQUESTIONABLY FURTHER REDUCE THE READINESS RELIABILITY AND CREDIBILITY OF THE AMERICAN NUCLEAR DETERRENT THERE IS AN URGENT NEED FOR A TRULY BOTTOM UP REVIEW OF US NUCLEAR POLICY UNLIKE THE ONE ANNOUNCED ON FRIDAY HOWEVER SUCH A REVIEW WOULD EXPLICITLY ADDRESS WHETHER THE US WILL CONTINUE TO NEED A NUCLEAR DETERRENT FOR THE FORESEEABLE FUTURE AND IF SO WHETHER WE ARE TAKING ALL NECESSARY STEPS TO MAINTAIN IT WHILE ALSO ENSURING THE MEANS OF DEFENDING AGAINST MISSILE ATTACKS SHOULD DETERRENCE FAIL IN VIEW OF THE PREJUDICES OF AT LEAST SOME OF THOSE INVOLVED IN THE ASPIN STUDY AN INDEPENDENT EXAMINATION OF THESE ISSUES SEEMS IN ORDER A BLUERIBBON BIPARTISAN PANEL SHOULD BE COMMISSIONED AND GIVEN ACCESS TO THE RELEVANT INTELLIGENCE AND OPERATIONAL DATA IT MIGHT PROVIDE A SECOND OPINION ON US NUCLEAR FORCES BEFORE ANY DRAMATIC REDIRECTION IS ORDERED MR GAFFNEY WAS RESPONSIBLE FOR NUCLEAR FORCES POLICY IN THE REAGAN DEFENSE DEPARTMENT HE IS CURRENTLY DIRECTOR OF THE CENTER FOR SECURITY POLICY IN WASHINGTON 9311020009 931102 LETTERS TO THE EDITOR THE SEARCH FOR TRUTH IN HIS OCT 8 EDITORIALPAGE ESSAY THE TRUTH ABOUT FREEDOM FATHER RICHARD JOHN NEUHAUS ASSERTED THAT SOME OF THE KEY FIGURES IN THE HISTORY OF THOUGHT AGREE WITH POPE JOHN PAUL II AND HIS WRITING IN VERITATIS SPLENDOR THAT THERE IS A NECESSARY CONNECTION BETWEEN FREEDOM AND TRUTH HE CITES AMONG THOSE AGREEING WITH THIS VIEW ARISTOTLE AND THE AMERICAN FOUNDERS HE ALSO ASSERTS THAT SOME THINKERS HAVE CONCLUDED THAT LICENSE IS THE UNDOING OF FREEDOM OUT OF THIS LOT HE CITES NIETZSCHE FATHER NEUHAUS'S STATEMENTS ABOUT ARISTOTLE THE FOUNDING DOCUMENTS AND NIETZSCHE ARE INCORRECT HE ARGUES ABOUT MORAL TRUTH CITING THESE SOURCES WHILE THEY CLEARLY INDICATE A VIEW OF ETHICS THAT IS VERY MUCH BASED ON A SOCIETAL RATHER THAN ABSOLUTIST VIEW NOT ALLOWING THESE FACTS TO INTERFERE WITH HIS TRUTH FATHER NEUHAUS ALSO NUMBERS HIMSELF AMONG THE SOPHISTS BY CONTINUOUSLY CHANGING THE DEFINITION OF TRUTH THROUGHOUT HIS EDITORIAL HE SKEWS THE DISCUSSION TOWARD A SINGULAR AUTHORITY NOT RECOGNIZED COMPLETELY BY OUR SOCIETY ARISTOTLE'S PRINCIPAL WORK ON MORALITY IS THE NICOMACHEAN ETHICS QUOTING FROM BOOK VI CHAPTER 2 THE GOOD AND THE BAD ARE TRUTH AND FALSITY RESPECTIVELY THIS DOES NOT TELL US WHAT GOOD IS PRECISELY ALTHOUGH IT EQUATES GOOD WITH TRUTH LOOKING IN BOOK 1 CHAPTER 2 ARISTOTLE STATES THAT THE GOOD WE SEEK IS THE MASTER ART WHICH HE THEN DEFINES AS POLITICS POLITICS ACCORDING TO ARISTOTLE LEGISLATES WHAT WE ARE TO DO AND WHAT WE ARE TO ABSTAIN FROM THIS MUST BE THE FOOD FOR MAN THIS CHAPTER CONTINUES BY SAYING THAT THE ENDS OF THE STATE SUPERSEDE THE ENDS OF THE INDIVIDUAL TAKEN TOGETHER THESE ASSERTIONS SAY THAT THE STATE DECIDES THE GOOD IN A POLITICAL ACT AND SETS FORTH A PRESCRIPTION OF ACTIONS FOR THE INDIVIDUAL THIS DOES NOT SEEM TO FIT WITH THE AMERICAN NOTION OF FREEDOM THE DOCUMENT FROM OUR FOUNDING FATHERS THAT FATHER NEUHAUS APPARENTLY CONCERNS HIMSELF WITH IS THE DECLARATION OF INDEPENDENCE THE RELEVANT PASSAGE BEGINS WITH WE HOLD THESE TRUTHS TO BE SELF EVIDENT OUR FOUNDERS AGREED UPON THESE TRUTHS IN A POLITICAL ACT THE TRUTHS MAY BE CLAIMED TO BE SELFEVIDENT BUT IN FACT WERE SOCIETALLY AGREED UPON AS OUR BASIC TENETS LIFE LIBERTY AND THE PURSUIT OF HAPPINESS IN THE SENSE UNDERSTOOD BY ARISTOTLE ARE DETERMINED AND PRESCRIBED BY THE STATE OUR CONSTRAINTS HAVE TYPICALLY BEEN TOWARD THE NEGATIVE IE DON'T DO THIS WHEREAS ARISTOTLE GIVES A MORE DICTATIVE VIEW OF SOCIETY'S RULES AS BEING WHAT TO DO AND WHAT NOT TO DO AS FOR NIETZSCHE'S VIEWS ABOUT FREEDOM AND LICENSE FATHER NEUHAUS IS COMPLETELY DISJOINTED FROM WHAT NIETZSCHE WROTE LET'S KEEP IN MIND WHAT NIETZSCHE'S VIEW OF MORALITY WAS ALL ABOUT PERSONAL POWER HIS VIEW ISN'T RELATIVISTIC BUT ABSOLUTIST AND THE INDIVIDUAL IS THE ABSOLUTE SOCIETAL LICENSE PLAYS IN ONLY SO FAR AS IT SEEKS TO RESTRICT AND THEREBY KILL THE INDIVIDUAL A MAN INTERPRETS THE WORLD TO HIS WILL AND IN DOING SO IS REVILED BY THE KEEPERS OF THE OLD ORDER THE TRUTH BECOMES WHAT MEN WILL IT TO BE THIS IS A FAR CRY FROM ARISTOTLE IT WOULD PROBABLY NOT SIT WELL WITH ANY GROUP PEOPLE UNDERSTAND TRUTH TO MEAN FACTS BUT THEY ALSO UNDERSTAND IT TO BE OTHER THINGS THE SWITCHING MEANINGS OF TRUTH PLAY MORAL TRUTH AGAINST RELIGIOUS TRUTH AGAINST EPISTEMOLOGICAL TRUTH ARISTOTLE'S TRUTH WAS ABOUT ETHICS THE CONDUCT BETWEEN PARTIES WITHIN SOCIETY JESUS'S TRUTH WAS ABOUT A BELIEF IN A GOD AND MAN'S RELATIONSHIP WITH HIM NEITHER OF THESE IS THE SAME THING AS THE TRUTH OF NEWTON'S SECOND LAW THERE IS NO MORALITY OR SIN IN THE TRUTH OF FACTS ARISTOTLE EQUATED GOD WITH TRUTH NIETZSCHE ALSO PICKS UP ON THIS AND ARGUES THAT GOOD ASSIGNS MORAL JUDGMENT FATHER NEUHAUS KNOWS THIS AND DEMARKS A TRUE HUMANISM FAVORED BY JOHN PAUL II AND A SECULAR HUMANISM BUT IF SECULAR HUMANISM IS CLEARLY DEFINED AND SOMETHING IS FOUND THAT MEETS ALL OF THE CRITERIA IS IT A TRUE SECULAR HUMANISM OR IS IT A FALSE SECULAR HUMANISM IF IT IS TRUE IT IS GOOD IF IT IS FALSE IT IS BAD YES THESE ARE WORD GAMES ABOUT GOOD AND BAD TRUE AND FALSE BUT IT CLEARLY SHOWS THAT DOWN TO BRASS TACKS THESE WORDS ARE MEANINGLESS TRUTH IS AN ILLUSION IF FATHER NEUHAUS AND JOHN PAUL II AIM FOR A DISCUSSION OF WHAT IS THE RIGHT THING TO DO THEN EVERYONE SHOULD JOIN INTO A CACOPHONY OF VOICES AS THE CONTINUOUS STRUGGLE FOR THE TRUTH GOES ON IT STRIDES RATHER HARSHLY THAT THEY SEEK ONLY TO DICTATE THEIR VIEW UPON THE REST OF US AN ABSOLUTE TRUTH MIGHT APPEAR APPEALING BUT IS REALLY A CHIMERA THAT WOULD DEVOUR OUR FREEDOM SUBMISSION TO A PROCLAIMED ABSOLUTE IS NOT SUBMISSION TO THE TRUTH OUR GOOD AND OUR TRUTH COMES FROM THE STRUGGLE WITH PILATE'S QUESTION FREE SOCIETIES DOOM THEMSELVES TO THE ROLE OF SISYPHUS IN THIS MATTER RICHARD JOHN NEUHAUS PERCEPTIVELY EXAMINED THE SALIENT THEME OF VERITATIS SPLENDOR A FREE SOCIETY CANNOT BE CONSTRUCTED APART FROM THE CORNERSTONE OF TRUTH THE ESSENTIAL RELATIONSHIPS BETWEEN FREEDOM TRUTH AND MORALITY AS CHAMPIONED IN THE POPE'S THOUGHTFUL DISCOURSE ARE INDEED WORTH CONSIDERATION IN A CENTURY WHEN LENIN TOUP A PEN TO OUTLINE THE NECESSARY INGREDIENTS FOR A REVOLUTION HIS PRESCRIPTION IS A SOBER REMINDER OF HOW STRONGLY THE POPE SPEAKS TO OUR AGE AS RJ RUSHDOONY DESCRIBES IT LENIN PLACED MORAL COLLAPSE AHEAD OF POLITICAL COLLAPSE IN ORDER TO MAKE POLITICAL COLLAPSE POSSIBLE EVERYTHING WAS DONE PRIOR TO THE RUSSIAN REVOLUTION TO ASSAULT RIDICULE AND DENY THE RELIGIOUS AND MORAL FOUNDATIONS OF THE NATION OURS IS INCREASINGLY AN AGE OF MORAL INSANITY AND THE POPE'S ADMONITION IS A WELCOME ANTIDOTE AGAINST THE TOXIC RELATIVISM THAT IS VISIBLY DISMANTLING OUR CULTURE FATHER NEUHAUS WOULD HAVE BETTER SERVED THE READERS BY REVEALING POPE JOHN PAUL II'S INTELLECTUAL UNDERPINNINGS IT WAS NOT SO MUCH AUGUSTINE AND AQUINAS WHO PROVIDED HIM WITH HIS NOTIONS OF VALUES AND MORAL TRUTH RATHER IT WAS MAX SCHELER A CONTEMPORARY GERMAN PHILOSOPHER WHOSE WRITINGS PROVIDED THE POPE WITH MUCH OF THE PHILOSOPHICAL FOUNDATIONS FOR HIS 10TH ENCYCLICAL VERITATIS SPLENDOR FATHER NEUHAUS EXPLAINS THE PONTIFF'S DEFENSE OF TRUTH AGAINST THE PUNDITS OF ETHICAL RELATIVITY THE POPE'S ARGUMENT IS SEDUCTIVE BUT FLAWED IN MORALITY AS IN SCIENCE WE MUST SEEK TRUTH IF THERE WERE NO SCIENTIFIC TRUTH SCIENTIFIC RESEARCH WOULD BE POINTLESS ON THE OTHER HAND HEISENBERG AND EINSTEIN SHOWED US THAT SCIENTIFIC TRUTH CAN BE PRETTY SLIPPERY SIMILARLY MORAL TRUTH CAN BE SLIPPERY THE CHURCH ONCE TAUGHT THAT CHARGING INTEREST ON LOANS VIOLATED THE LAWS OF NATURE A ONCE PACIFIST CHURCH ADAPTED JUST WAR THEORIES THE BIBLE CONDONED SLAVERY IN CONTRAST TO THE PRESENT POPE JESUS DID NOT CONSIDER SEXUAL ETHICS AS THE SINGLE OVERRIDING MORAL ISSUE OFTEN THE GREATEST IMPEDIMENT TO FINDING TRUTH IS ASSUMING WE ALREADY HAVE IT SUCH AN ASSUMPTION SHUTS OFF DIALOGUE FROM THE TIME OF SOCRATES ONWARD MORAL TRUTH AS WE CAN KNOW IT BELONGS TO THE ONE WITH THE STRONGEST ARGUMENT AS EVOLVES IN OPEN DIALOGUE SCIENTISTS IN TREADING THE SLIPPERY TRAIL OF TRUTH DEVELOP THEORIES OF UNCERTAINTY AND RELATIVITY MORALISTS SIMILARLY DEVELOP THEORIES OF PROPORTIONALISM AND CONSEQUENTIALISM JOHN PAUL II SEES SUCH MORAL ARGUMENTS AS INIMICAL TO THE TRUTH BUT THE PROPONENTS OF THESE AND OTHER NUANCED ETHICAL THEORIES HAVE NO MORE DESIRE TO DESTROY TRUTH THAN EINSTEIN DID THEY SIMPLY DO NOT WISH TO DESCRIBE AS CERTAIN WHAT IS IN FACT RELATIVE IF THE POPE CANNOT CHERISH SUCH ARGUMENTS EVEN WHEN ADVANCED BY CATHOLIC THEOLOGIANS THEN HE IS NO LOVER OF THE TRUTH MR THURSTON HOLDS A PHD IN CATHOLIC THEOLOGY FROM THE GRADUATE THEOLOGICAL UNION IN BERKELEY AND IS ADJUNCT PROFESSOR AT ST MARY'S COLLEGE OF CALIFORNIA 9311020008 931102 AMERICAN EXPRESS BANKING AFFILIATE DISCIPLINED BY FED BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE BOARD ACCUSED AMERICAN EXPRESS BANK INTERNATIONAL OF IMPROPER BANKING PRACTICES AND IMPOSED A 950000 CIVIL PENALTY ON THE AMERICAN EXPRESS CO AFFILIATE THE BANK CHARTERED TO DO BUSINESS OVERSEAS IMPROPERLY MADE LOANS TO TWO EMPLOYEES BASED IN THE US FAILED TO MAINTAIN ADEQUATE RESERVES AGAINST LOAN LOSSES AND VIOLATED CERTAIN REPORTING AND RECORDKEEPING RULES ACCORDING TO THE FED THOUGH THE FED DISCIPLINED THE BANK THE AGENCY'S ACTION APPEARS DESIGNED TO PROTECT THE AMERICAN EXPRESS AFFILIATE FROM EMBARRASSMENT FIRST THE PENALTIES WERE CONTAINED IN A CONSENT AGREEMENT THAT BARRED THE FED FROM PROVIDING DETAILS ON HOW AMERICAN EXPRESS BANK INTERNATIONAL ALLEGEDLY VIOLATED FEDERAL BANKING LAW AND THE DEGREE TO WHICH THE BANK'S SAFETY WAS THREATENED SECOND THE FED ANNOUNCED ITS ACTION LATE IN THE DAY AFTER THE DEADLINES OF SOME NEWS ORGANIZATIONS NEITHER FED OFFICIALS NOR A STATEMENT ISSUED BY THE BANK SPELLED OUT THE ACTIONS THAT LED TO THE ACCUSATIONS BUT THE SIZE OF THE PENALTY AND THE TERMS OF THE ORDER SUGGEST SERIOUS INFRACTIONS OF BANKING LAW AND SIGNIFICANT MANAGEMENT PROBLEMS THE BANK CONSENTED TO THE ORDER WITHOUT ADMITTING THE FED'S ALLEGATIONS THE BANK AMONG OTHER THINGS MUST APPOINT AN INDEPENDENT CONSULTANT TO REVIEW THE COMPETENCE OF ITS MANAGEMENT PARTICULARLY IN ITS LOS ANGELES AND BEVERLY HILLS CALIF OFFICES THE CONSULTANT WILL REPORT ON THE MANAGEMENT'S ABILITY TO RESTORE THE BANK'S OPERATIONS TO A SAFE AND SOUND CONDITION WITH PARTICULAR ATTENTION TO ASSET QUALITY CAPITAL ADEQUACY EARNINGS MANAGEMENT EFFECTIVENESS INTERNAL CONTROLS AND LIQUIDITY THE FED ALSO ORDERED THE BANK TO ESTABLISH THROUGH CHARGES TO CURRENT OPERATING INCOME AN ADEQUATE VALUATION RESERVE FOR LOAN LOSSES IN A STATEMENT THE BANK SAID THE ALLEGED VIOLATION DIDN'T INVOLVE THE MISUSE OF CUSTOMER FUNDS SERGIO MASVIDAL PRESIDENT OF AMERICAN EXPRESS BANK INTERNATIONAL SAID THE MEASURES WE ARE TAKING OR HAVE TAKEN CLEARLY DEMONSTRATE THE DETERMINATION OF AEBI TO MAKE SURE ALL ITS OFFICERS MEET BOTH THE SPIRIT AND THE LETTER OF AEBI'S REGULATORY OBLIGATIONS 9311020007 931102 YOUR MONEY MATTERS PAINEWEBBER DETHRONES RAYMOND JAMES AS BROKERAGE INDUSTRY'S TOP STOCK PICKER BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL PAINEWEBBER GROUP INC HAS DETHRONED RAYMOND JAMES FINANCIAL INC AS KING OF THE HILL IN A CONTINUING STUDY OF BROKERAGE HOUSES' STOCKPICKING PROWESS INVESTORS WHO FOLLOWED PAINEWEBBER'S ADVICE REAPED AN ESTIMATED RETURN OF MORE THAN 50 FOR THE 12 MONTHS ENDED IN SEPTEMBER RAYMOND JAMES FELL TO THIRD PLACE DESPITE A HEFTY ESTIMATED RETURN OF MORE THAN 45 THE ST PETERSBURG FLA FIRM HAD STAYED AT THE PINNACLE IN THE 12MONTH STANDINGS FOR MORE THAN TWO YEARS SINCE JUNE 1991 IT REMAINS THE FIVEYEAR LEADER BY A SUBSTANTIAL MARGIN BROKERAGE HOUSES AS A GROUP CAN CROW ABOUT THE LATEST RESULTS ALL 15 FIRMS BESTED THE STANDARD & POOR'S 500STOCK INDEX A WIDELY USED MARKET GAUGE IN THE QUARTER THE 12 MONTHS AND THE FIVE YEARS ENDED SEPT 30 NEVER BEFORE IN MORE THAN SEVEN YEARS COVERED BY THE STUDY HAS THE ENTIRE FIELD ACCOMPLISHED THAT FEAT CONDUCTED EACH QUARTER BY THE WALL STREET JOURNAL AND ZACKS INVESTMENT RESEARCH INC OF CHICAGO THE STUDY ESTIMATES HOW AN INVESTOR WOULD FARE BY BUYING EVERY STOCK ON THE OFFICIAL RECOMMENDED LIST AT 15 MAJOR BROKERAGE HOUSES BOTH DIVIDENDS AND CAPITAL GAINS OR LOSSES ARE TAKEN INTO ACCOUNT A THEORETICAL 1 TRADING COMMISSION IS IMPOSED WHEN STOCKS ARE ADDED OR DELETED THE FIRMS THAT DID BEST IN THE 12MONTH RANKINGS SPRINKLED THEIR LISTS WITH SMALL STOCKS PAINEWEBBER AND RAYMOND JAMES PICKED THE SMALLEST COMPANIES TYPICALLY WITH MARKET VALUES UNDER 800 MILLION KEMPER SECURITIES INC A UNIT OF KEMPER CORP OF CHICAGO AND MERRILL LYNCH & CO WHICH FINISHED SECOND AND FOURTH RESPECTIVELY ALSO LEANED TOWARD THE SMALL END FIRMS SUCH AS LEHMAN BROTHERS INC AND GOLDMAN SACHS & CO THAT FAVORED BIGCOMPANY STOCKS GENERALLY ENDED UP IN THE BOTTOM HALF OF THE RANKINGS PRAISEWORTHY AS THE RECENT SHOWING OF BROKERAGE HOUSES IS INVESTORS SHOULDN'T ASSUME THAT ALL BROKERAGEHOUSE STOCK PICKERS HAVE SUDDENLY BECOME GENIUSES THE STUDY SUGGESTS THAT BROKERAGE FIRMS DO BEST IN RISING MARKETS AND WHEN SMALLER STOCKS OUTPERFORM LARGER ONES RECENTLY BOTH OF THOSE FACTORS HAVE BEEN WORKING IN THE HOUSES' FAVOR ACCORDING TO ANALYST RICK CHRABASZEWSKI OF ZACKS BROKERAGEHOUSE PICKS ARE CURRENTLY ABOUT 15 MORE VOLATILE THAN THE OVERALL MARKET THEY RISE FASTER THAN THE MARKET AVERAGES DURING UPTRENDS BUT FALL FASTER DURING DOWNTRENDS THE ONLY EXCEPTION CURRENTLY IS AG EDWARDS & SONS INC OF ST LOUIS WHOSE SELECTIONS ARE SOMEWHAT LESS VOLATILE THAN THE MARKET HERE'S A WORD FROM THE RESIDENT STOCK PICKERS AT THE HOUSES THAT DID BEST AND WORST IN THE STUDY THE FIRMS ARE LISTED IN ORDER OF THEIR 12MONTH PERFORMANCE PAINEWEBBER A ROARING GAIN OF 196 IN THE THIRD QUARTER PROPELLED PAINEWEBBER TO THE STOP OF THE 12MONTH STANDINGS INVESTORS WHO TOOK PAINEWEBBER'S SUGGESTION TO BUY FISHERPRICE INC CHALKED UP A 63 GAIN IN THE QUARTER LDDS COMMUNICATIONS INC GAINED 41 AND PHYSICIAN CORP OF AMERICA ROSE 33 PAINEWEBBER ALSO KEPT ITS LOSSES SMALL SUFFERING NO STOCK DECLINES OF MORE THAN 8 IN THE QUARTER IF THERE'S ONE THING THAT DISTINGUISHES US IT'S THAT WE TEND TO BE IMPATIENT WITH STOCKS THAT AREN'T DOING WHAT WE THINK THEY SHOULD SAYS BRIAN JACOBOSKI MANAGING DIRECTOR IN CHARGE OF THE FIRM'S PERFORMANCE PORTFOLIO PAINEWEBBER DUMPED FISHERPRICE FROM THAT PORTFOLIO AFTER THE TOY COMPANY ANNOUNCED ITS MERGER WITH MATTEL BUT MR JACOBOSKI STILL IS SWEET ON LDDS A SELLER OF LONGDISTANCE TELEPHONE SERVICES THAT HE THINKS IS TAKEOVER BAIT AND ON PHYSICIAN CORP A HEALTHMAINTENANCE ORGANIZATION IN THE SOUTH THAT CONTROLS COSTS WELL KEMPER SECURITIES PEOPLE WHO BOUGHT ON KEMPER'S ADVICE HAD A PLEASANT 12 MONTHS THERE WERE BIG GAINS IN STOCKS LIKE CELTRIX PHARMACEUTICALS INC UP 59 CONTINENTAL BANK CORP 49 AND CUMMINS ENGINE CO 44 THESE DAYS KEMPER LIKES THE BIOTECHNOLOGY SECTOR SAYS KENT LILLICK A MEMBER OF THE INVESTMENTPOLICY COMMITTEE IT'S A WASHEDOUT SECTOR AND YOU HAVE GOOD UPSIDE POTENTIAL OUR TOP PICK THERE WOULD BE TELIOS PHARMACEUTICALS INC RAYMOND JAMES RIDING THE GAMBLINGSTOCK BOOM HELPED SPARK RAYMOND JAMES'S PERFORMANCE FOR THE PAST FEW YEARS FOR THE 12 MONTHS THROUGH SEPTEMBER PROMUS COS SHOT UP 311 AND MIRAGE RESORTS INC ROSE 110 THE FIRM WON'T RETREAT FROM THE HOT SEGMENT NOW SAYS RESEARCH DIRECTOR DAVID HENWOOD WE DON'T EXPECT THE NEXT 12 MONTHS TO BE AS GOOD AS THE LAST 12 HE SAYS BUT WITH GAMBLING PROLIFERATING ON INDIAN RESERVATIONS ON RIVERBOATS AND IN A GROWING NUMBER OF CITIES WE THINK GAMBLING STOCKS WILL CONTINUE TO PROVIDE EXCELLENT RETURNS RAYMOND JAMES IS ALSO MAKING A HEAVY BET ON HEALTH CARE MR HENWOOD SAYS NOW THAT PRESIDENT CLINTON HAS SPELLED OUT HIS HEALTHCARE PROPOSALS A LOT OF THE MYSTERY AND UNCERTAINTY IS OUT OF THE STOCKS WHILE AVOIDING PHARMACEUTICAL STOCKS THE FIRM IS RECOMMENDING NURSINGHOME OPERATOR BEVERLY ENTERPRISES HEALTHCARE REALESTATE TRUST MEDI NOVACARE INC A PROVIDER OF PHYSICAL AND SPEECH THERAPY AND MEDICALDEVICE STOCKS SUCH AS CR BARD INC CORDIS CORP AND MEDTRONIC INC MERRILL LYNCH THE BIGGEST US BROKERAGE FIRM FINISHED FOURTH FOR THE 12 MONTHS AND FIFTH FOR THE QUARTER WITH BIG GAINS RECENTLY IN EMC CORP AND SUNGARD DATA SYSTEMS INC WHILE 14 OF THE 15 FIRMS IN THE JOURNAL/ZACKS STUDY ACCEPT THE METHOD BY WHICH THE RANKINGS ARE COMPUTED MERRILL ACCEPTS ONLY THE PAST TWO YEARS' RESULTS UNTIL AUTUMN OF 1991 ITS PERFORMANCE WAS JUDGED ON THE BASIS OF ITS ANALYSTS' STRONG BUY RECOMMENDATIONS BECAUSE THE FIRM DECLINED TO SPECIFY WHAT LIST IT WANTED TO BE JUDGED ON WERE THE JOURNAL AND ZACKS TO USE RETROACTIVELY THE LIST MERRILL NOW SPECIFIES THE FIRM SAYS ITS FIVEYEAR GAIN WOULD BE ABOUT 237 INSTEAD OF 143 BUT RULES OF THE STUDY PROHIBIT RETROACTIVE LIST SELECTION KIDDER PEABODY THE GENERAL ELECTRIC CO UNIT SNARED SECOND PLACE FOR THE SEPTEMBER QUARTER WITH LARGE GAINS IN INTEGRATED DEVICE TECHNOLOGY INC EMC AND APPLIED MATERIALS INC AFTER EMPHASIZING TECHNOLOGY STOCKS IN THE THIRD QUARTER KIDDER IS CUTTING BACK ON THEM SAYS STRATEGIST WILLIAM NEWMAN THE NEW EMPHASIS IS ON CYCLICAL STOCKS SUCH AS MCGRAWHILL INC GANNETT CO FORD MOTOR CO WHIRLPOOL CORP AND CONTINENTAL HOMES HOLDING CORP MORGAN STANLEY THOUGH IT WAS SEVENTH FOR THE 12 MONTHS MORGAN STANLEY & CO WAS LAST FOR THE QUARTER TAKING LOSSES OF 25 OR MORE IN ADOBE SYSTEMS INC NOVELL INC MAGNETEK INC AND STRUCTURAL DYNAMICS RESEARCH CORP A FEW TECHNOLOGY STOCKS HURT ME SAYS BYRON WIEN DOMESTIC STOCK STRATEGIST AND YOU HAVE A BAD QUARTER EVERY ONCE IN A WHILE DEAN WITTER DEAN WITTER REYNOLDS INC A UNIT OF SEARS ROEBUCK & CO HOLDS THIRD PLACE IN THE FIVEYEAR STANDINGS BEHIND PAINEWEBBER ITS BIGGEST WINNER RECENTLY WAS PLUM CREEK TIMBER CO WHICH PERFORMED BEYOND OUR WILDEST DREAMS SAYS RESEARCH DIRECTOR MANNY KORMAN HE STILL LIKES PLUM CREEK BUT AT TODAY'S PRICES PREFERS LOUISIANAPACIFIC CORP IN THE WOODPRODUCTS SEGMENT DEAN WITTER EXPECTS A STRONGER ECONOMY THAN MOST FIRMS SO IT IS EMPHASIZING CYCLICAL STOCKS GOLDMAN SACHS AMONG THE 10 FIRMS WITH FIVEYEAR RECORDS WELLRESPECTED GOLDMAN RANKED LAST STEVEN EINHORN CHAIRMAN OF THE INVESTMENTPOLICY COMMITTEE POINTS OUT THAT GOLDMAN BEAT THE S&P 500STOCK INDEX BY A DOZEN PERCENTAGE POINTS DURING THAT PERIOD LIGHT REPRESENTATION IN CYCLICAL STOCKS AND IN SMALL STOCKS HURT THE FIRM'S STANDING HE SAYS BUT WITH A CLIENTELE CONSISTING MOSTLY OF BIG INSTITUTIONS HE ADDS WE DON'T HAVE QUITE THE FLEXIBILITY OTHER ORGANIZATIONS HAVE TO PICK SMALL STOCKS HE ALSO SAYS THAT WHILE THE FIRM'S PRIORITY LIST WAS UP ONLY 186 FOR THE PAST 12 MONTHS ITS BROADER RECOMMENDED LIST ROSE 246 LEHMAN BROTHERS THE AMERICAN EXPRESS CO UNIT RANKED LAST FOR THE 12 MONTHS RESEARCH DIRECTOR FRED FRAENKEL SAYS LEHMAN DELIBERATELY HAS A LONG RECOMMENDED LIST TO PROVIDE A REPRESENTATIVE SAMPLING OF ANALYSTS' RESEARCH RECOMMENDATIONS A LONG LIST TENDS TO PERFORM ABOUT IN LINE WITH THE OVERALL MARKET BUT MAY HOLD UP BETTER IN A DOWNTURN HE SAYS 9311020006 931102 BUSH'S OLDEST SON RESIGNS POSTS AT HARKEN ENERGY DALLAS GEORGE W BUSH THE OLDEST SON OF FORMER PRESIDENT GEORGE BUSH RESIGNED AS A DIRECTOR AND CONSULTANT TO HARKEN ENERGY CORP TO DEVOTE HIS TIME TO OTHER MATTERS THE YOUNGER MR BUSH MANAGING GENERAL PARTNER OF THE TEXAS RANGERS BASEBALL TEAM IS WIDELY EXPECTED TO ANNOUNCE SOON THAT HE WILL SEEK THE REPUBLICAN NOMINATION FOR GOVERNOR OF TEXAS IN A RACE THAT WOULD PIT HIM AGAINST THE INCUMBENT DEMOCRAT ANN RICHARDS MR BUSH'S INVOLVEMENT WITH HARKEN WAS THE SUBJECT OF A PAGEONE ARTICLE IN THE WALL STREET JOURNAL IN DECEMBER 1991 AFTER THE COMPANY WON AN OILDRILLING CONTRACT FROM THE PERSIAN GULF NATION OF BAHRAIN THE ARTICLE REPORTED THAT A NUMBER OF INDIVIDUALS CONNECTED TO BANK OF CREDIT & COMMERCE INTERNATIONAL ALSO HAD TIES TO THE COMPANY AND TO BAHRAIN THE NATION AWARDED THE OFFSHOREDRILLING CONTRACT TO HARKEN IN 1990 EVEN THOUGH THE COMPANY HAD NEVER DRILLED A WELL OVERSEAS HARKEN EXECUTIVES DIDN'T RETURN SEVERAL TELEPHONE CALLS SEEKING COMMENT ON MR BUSH'S DEPARTURE 9311020005 931102 BUSINESS BRIEF ALCO STANDARD CORP REVENUE SURGED BUT CHARGE LED TO FISCAL 4THPERIOD LOSS ALCO STANDARD CORP DESPITE A 46 JUMP IN REVENUE REPORTED A FISCAL FOURTHQUARTER NET LOSS BECAUSE OF A PREVIOUSLY ANNOUNCED RESTRUCTURING CHARGE FOR THE QUARTER ENDED SEPT 30 THE VALLEY FORGE PA OFFICEEQUIPMENT AND PAPERPRODUCTS DISTRIBUTOR REPORTED A NET LOSS OF 916 MILLION OR 194 A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 174 MILLION OR 37 CENTS A SHARE REVENUE IN THE QUARTER ROSE TO 197 BILLION UP 46 FROM 134 BILLION IN SEPTEMBER ALCO REPORTED A RESTRUCTURING OF ITS PAPER DISTRIBUTION BUSINESS AND A RESULTING CHARGE TO PRETAX EARNINGS OF 175 MILLION OR 238 A SHARE FOR THE FISCAL YEAR ALCO REPORTED A NET LOSS OF 95 MILLION OR 20 CENTS A SHARE COMPARED WITH NET INCOME OF 958 MILLION OR 204 A SHARE A YEAR EARLIER REVENUE FOR THE YEAR ROSE 31 TO 644 BILLION UP FROM 493 BILLION 9311020004 931102 PEPPERAND SALT OF MOSTLY WISH AND WEAR THOSE SICK OF THE BOSS S&L BAILOUT DEBT WARMED OVER 9311020003 931102 SIZELER PROPERTY PURCHASE KENNER LA SIZELER PROPERTY INVESTORS INC SAID IT COMPLETED THE PURCHASE OF A 240UNIT APARTMENT COMPLEX IN NAPLES FLA TERMS WEREN'T DISCLOSED COMPLETION OF THIS ACQUISITION GIVES THE COMPANY MORE THAN 400 APARTMENT UNITS IN THE FLORIDA MARKET AREA SIZELER SAID 9311020002 931102 TREASURY ESTIMATES ITS BORROWING NEEDS IN THE CURRENT QUARTER WASHINGTON THE TREASURY SAID ITS NET MARKET BORROWING NEEDS IN THE OCTOBERTODECEMBER QUARTER ARE EXPECTED TO BE 852 BILLION WITH A 35 BILLION CASH BALANCE ON DEC 31 THE TREASURY ALSO ESTIMATED ITS NET MARKET BORROWING NEEDS FOR THE JANUARYTOMARCH 1994 QUARTER AT 60 BILLION TO 65 BILLION WITH A 20 BILLION CASH BALANCE AT THE END OF MARCH IN THE QUARTERLY ANNOUNCEMENT OF ITS BORROWING NEEDS ON AUG 2 THE TREASURY ESTIMATED NET MARKET BORROWING IN THE OCTOBERTODECEMBER QUARTER TO BE 95 BILLION TO 100 BILLION ASSUMING A 35 BILLION CASH BALANCE AT THE END OF THE QUARTER ACTUAL MARKET BORROWING IN THE QUARTER ENDED SEPT 30 WAS 443 BILLION WITH A CASH BALANCE OF 525 BILLION AT THE END OF THE QUARTER THE TREASURY HAD ESTIMATED MARKET BORROWING FOR THE JULYTOSEPTEMBER QUARTER TO BE 583 BILLION WITH A 40 BILLION CASH BALANCE AT THE END OF THE PERIOD 9311020001 931102 TECHNOLOGY & HEALTH HEALTH INSURERS' ADS DENOUNCED BY FIRST LADY BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FIRST LADY HILLARY RODHAM CLINTON BLASTED THE HEALTH INSURANCE INDUSTRY CHARGING IT WITH BEING GREEDY AND SPREADING LIES ABOUT THE ADMINISTRATION'S HEALTHCARE PLAN THROUGH A SERIES OF TELEVISION ADS MRS CLINTON IN A SPEECH TO THE AMERICAN ACADEMY OF PEDIATRICS SINGLED OUT A 65 MILLION ADVERTISING CAMPAIGN BY THE HEALTH INSURANCE ASSOCIATION OF AMERICA THE TV SPOTS WHICH SHOW A COUPLE SITTING AROUND THE KITCHEN TABLE DISCUSSING THE HEALTHCARE PROPOSAL HAVE ATTACKED THE CLINTON PLAN FOR AMONG OTHER THINGS LIMITING CONSUMER CHOICE AT ANOTHER POINT IN HER ADDRESS MRS CLINTON ASSERTED ONE OF THE GREAT LIES THAT IS CURRENTLY AFOOT IN THE COUNTRY IS THAT THE PRESIDENT'S PLAN WILL LIMIT CHOICE TO THE CONTRARY THE PRESIDENT'S PLAN ENHANCES CHOICE AND SHE ADDED THE INSURANCE COMPANIES LIKE WHAT IS HAPPENING TODAY THEY LIKE BEING ABLE TO EXCLUDE PEOPLE FROM COVERAGE BECAUSE THE MORE THEY CAN EXCLUDE THE MORE MONEY THEY CAN MAKE MRS CLINTON'S HARSH WORDS MARKED THE CONTINUATION OF A DISPUTE BETWEEN THE INSURANCE INDUSTRY AND THE WHITE HOUSE FOR WEEKS THE HEALTH INSURANCE ASSOCIATION HAS ACCUSED THE CLINTON ADMINISTRATION OF UNFAIRLY FITTING THE INDUSTRY WITH BLACK HATS THE ACCURACY OF HIAA'S ADVERTISEMENTS CAN'T BE QUESTIONED CHARLES KAHN THE GROUP'S EXECUTIVE VICE PRESIDENT SAID IN RESPONSE TO THE FIRST LADY'S REMARKS AFTER ALL THEY ARE BASED ENTIRELY UPON THE CLINTON HEALTHCARE REFORM PROPOSAL AS MADE PUBLIC MR KAHN MAINTAINED THAT WHILE THE ASSOCIATION IS FOURSQUARE IN FAVOR OF COMPREHENSIVE REFORM OF THE HEALTHCARE SYSTEM THE GROUP HAS RAISED AND WILL CONTINUE TO RAISE QUESTIONS ABOUT THE PRESIDENT'S PLAN 9311020125 931008 THE TRUTH ABOUT FREEDOM BY RICHARD JOHN NEUHAUS THIS WEEK POPE JOHN PAUL II ISSUED HIS 10TH ENCYCLICAL VERITATIS SPLENDOR THE SPLENDOR OF TRUTH THE TABLOIDS BLAZONED THAT THE POPE IS CLAMPING DOWN ON SEXUAL ETHICS AND YES IT TURNS OUT THAT HE HASN'T CHANGED HIS MIND ON FORNICATION AND ADULTERY BUT THAT IS RATHER TO MISS THE POINT OF THIS EXTENDED 179 PAGES AND CLOSELY REASONED ARGUMENT ABOUT THE NATURE OF MORALITY OTHER REPORTS FOCUSED ON HIS CRITICISM OF ETHICAL THEORIES THAT GO BY CUMBERSOME NAMES SUCH AS PROPORTIONALISM AND CONSEQUENTIALISM THAT IS CLOSER TO THE POINT BUT STILL DOESN'T QUITE GET IT VERITATIS SPLENDOR IS MUCH MORE THAN A PONTIFICAL SALVO IN INTRAMURAL DISPUTES AMONG MORAL PHILOSOPHERS AND THEOLOGIANS IN THIS DOCUMENT THE POPE OFFERS NOT SO MUCH AN ANALYSIS OF THE WORLD'S MORAL CONDITION WHICH WE ALL KNOW IS IN A VERY BAD WAY AS AN EXAMINATION OF WHY WE MODERNS NO LONGER MAKE MORAL SENSE TO ONE ANOTHER MAKING SENSE ASSUMES THAT THERE IS SOME TRUTH ABOUT THE MATTER IN DISPUTE BUT WHEN IT COMES TO MORALITY IT IS WIDELY ASSUMED TODAY THAT THERE IS NO SUCH THING AS TRUTH INDEED MORAL TRUTH IS THOUGHT TO BE AN OXYMORON YOU HAVE YOUR VALUES AND I HAVE MINE AND THERE THE DISCUSSION COMES TO A SCREECHING HALT WHAT IS TRUTH ASKED PONTIUS PILATE HE LIKE MANY OF OUR CONTEMPORARIES TOOK THAT QUESTION TO BE A DISCUSSIONSTOPPER JOHN PAUL II ARGUES THAT IT OUGHT TO BE A DISCUSSIONSTARTER MODERNITY HE NOTES APPRECIATIVELY HAS BEEN VERY BIG ON FREEDOM BUT NOW FREEDOM HAS BEEN UNTETHERED FROM TRUTH AND FREEDOM CANNOT STAND ALONE WITHOUT DEGENERATING INTO LICENSE LICENSE IN TURN IS THE UNDOING OF FREEDOM FOR THEN AS NIETZSCHE AND OTHERS RECOGNIZED ALL PERSONAL AND SOCIAL LIFE BECOMES SIMPLY THE ASSERTION OF POWER IF FREEDOM IS TO BE SECURED POWER AND FREEDOM ITSELF MUST BE ACCOUNTABLE TO TRUTH OR AS JOHN PAUL PUTS IT REPEATEDLY AUTHENTIC FREEDOM IS ORDERED TO TRUTH THIS THE POPE EMPHATICALLY INSISTS IS NOT A NEW IDEA THE CENTRAL TEXT FOR VERITATIS SPLENDOR IS THE WORD OF JESUS YOU WILL KNOW THE TRUTH AND THE TRUTH WILL MAKE YOU FREE JOHN 832 FROM THE GIVING OF THE DECALOGUE AT SINAI FROM ARISTOTLE THROUGH TO THE AMERICAN FOUNDERS WE HOLD THESE TRUTHS TO BE SELFEVIDENT IT HAS BEEN THOUGHT THAT THERE IS A NECESSARY CONNECTION BETWEEN FREEDOM AND TRUTH THE APPARENTLY NEW THING ABOUT OUR TIME IS THE PROPOSAL THAT FREEDOM CAN GET ALONG WITHOUT TRUTH THAT PROPOSAL JOHN PAUL ARGUES IS INTELLECTUALLY UNCONVINCING SPIRITUALLY INCOHERENT AND MORALLY DISASTROUS CLEAR THINKING ABOUT MORAL TRUTH FOUNDERS ON THE ROCKS OF RELATIVISM AND SUBJECTIVISM IN A RADICALLY INDIVIDUALISTIC CULTURE WE DO NOT DISCERN AND OBEY WHAT IS OBJECTIVELY TRUE RATHER EACH OF US DECIDES WHAT IS TRUE FOR ME WE CREATE THE TRUTH THIS HOWEVER IS REALLY NOT SO NEW ACCORDING TO THE POPE IT IS A WAY OF THINKING AND ACTING THAT BEGAN WITH THE UNFORTUNATE AFTERNOON IN THE GARDEN OF EDEN AND HAS RESULTED IN HERDS OF INDEPENDENT MINDS MARCHING TOWARD MORAL OBLIVION WITH FRANK SINATRA'S WITLESS BOAST ON THEIR LIPS I DID IT MY WAY THE POSTMODERNIST TWIST ON THIS IS TO ARGUE THAT ALL MORALITY IS CREATED BY CULTURE WE ARE SOCIALLY CONSTRUCTED IT IS SAID ALL THE WAY DOWN FREEDOM MAY BE HIGH AMONG YOUR VALUES BUT THAT IS ONLY BECAUSE YOU ARE THE PRODUCT OF A CULTURE THAT VALUES FREEDOM ERGO YOUR FREEDOM IS A DELUSION IN FACT YOU ARE AS CAPTIVE TO YOUR CULTURE AS SOMEBODY ELSE WHO IS THE PRODUCT OF A CULTURE THAT VALUES COLLECTIVISM OR CHILD SACRIFICE OR WHATEVER JOHN PAUL KNOWS THESE ARGUMENTS INSIDE OUT BUT HE IS NOT BUYING BUT IT MAY BE OBJECTED THIS IS IMPOSSIBLY ETHEREAL AND OFFPUTTINGLY RELIGIOUS ANYWAY THERE IS NO GOING BACK TO SIMPLER DAYS WHEN IT WAS POSSIBLE TO ASSERT THAT WE HOLD THESE TRUTHS AS THOUGH THERE ARE ACTUALLY TRUTHS TO HOLD AND TO BE HELD BY WE LIVE IN A PLURALISTIC SOCIETY THERE IS NOT AGREEMENT ON WHAT TRUTHS WE HOLD AND SO FORTH JUST SO SAYS JOHN PAUL AND THAT IS PRECISELY WHY WE NEED SO URGENTLY TO ENGAGE IN ARGUMENT ABOUT THE TRUTH THAT UNDERGIRDS HUMAN FREEDOM AND DIGNITY OUR DIFFERENCES NOTWITHSTANDING WE CAN MAKE SENSE TO ONE ANOTHER BECAUSE WE HAVE IN COMMON OUR HUMAN NATURE AND THE CAPACITY TO REASON AND THESE ARE UNIVERSAL THE POPE IS KEENLY AWARE THAT IN CONTENDING FOR UNIVERSAL NATURE AND REASON HE IS GOING UP AGAINST REGNANT VIEWS IN MANY OF OUR ELITE INSTITUTIONS VIEWS THAT HAVE METASTASIZED WITH REMARKABLE VIRULENCE IN POPULAR CULTURE AS FREEDOM HAS TURNED AGAINST ITSELF SO ALSO REASON HAS TURNED AGAINST ITSELF WITH THE RESULT THAT CONFIDENCE IN WHAT IS DISTINCTIVELY HUMAN HAS BEEN SEVERELY UNDERMINED THE IDEA THAT AT THE END OF THE SECOND MILLENNIUM THE CATHOLIC CHURCH HAS TURNED OUT TO BE THE PREMIER INSTITUTIONAL CHAMPION OF HUMANISM AND REASON IN THE CONTEMPORARY WORLD WILL STRIKE MANY AS IMPROBABLE IF NOT PREPOSTEROUS THEY SHOULD READ VERITATIS SPLENDOR AND OTHER WRITINGS OF THIS PHILOSOPHER POPE OR FOR THAT MATTER THEY MIGHT CONSULT AGAIN OR CONSULT FOR THE FIRST TIME AUGUSTINE AND AQUINAS JOHN PAUL IS FOR SURE NO FRIEND OF SECULAR HUMANISM NOR IS HIS DEFENSE OF REASON TO BE CONFUSED WITH THE TRUNCATED AND REDUCTIONIST RATIONALISM OF THE ENLIGHTENMENT PHILOSOPHES TRUE HUMANISM HE CONTENDS IS DIRECTED TOWARD THE TRANSCENDENT TOWARD THE ULTIMATE GOOD WHO IS GOD AND REASON PARTICIPATES IN THE FULLNESS OF TRUTH THROUGH REVELATION BUT TO THOSE WHO ARE MADE NERVOUS BY REFERENCES TO GOD AND REVELATION THE POPE IS SAYING IN THIS ENCYCLICAL THAT WE STILL HAVE A LOT TO TALK ABOUT AND WE HAD BETTER GET ON WITH IT BEFORE HUMANITY STAGGERS MORE DEEPLY INTO THE NIGHT OF MORAL NOTHINGNESS SOME MIGHT THINK JOHN PAUL'S SENSE OF URGENCY SLIGHTLY APOCALYPTIC OTHERS MORE ALERT TO THE INTELLECTUAL AND CULTURAL DRIFT OF OUR TIME WILL WELCOME HIS ARGUMENT AS A BRACING CALL TO REAFFIRM REASON AND HUMAN DIGNITY IN THE FACE OF NIHILISM BOTH THEORETICAL AND PRACTICAL HUMAN RIGHTS AND DUTIES SAYS THE POPE ARE UNIVERSAL AND IMMUTABLE THAT IS THE POSITION THE US HAS TAKEN AGAINST COUNTRIES CLAIMING THAT THE IDEA OF UNIVERSAL HUMAN RIGHTS REFLECTS THE CULTURAL IMPERIALISM OF THE WEST IN FACT SUCH COUNTRIES MAY HAVE A CASE THE HUMAN RIGHTS AGENDA IS NO MORE THAN AN IDEOLOGICAL IMPOSITION BY THE WEST IF THE CAUSE OF FREEDOM IS DIVORCED FROM THE CLAIMS OF TRUTH THE CONTENTION THAT THERE IS NO OBJECTIVE OR UNIVERSAL TRUTH HAS ACHIEVED A MEASURE OF OFFICIAL STATUS AMONG US BY FIAT OF THE SUPREME COURT IN PLANNED PARENTHOOD V CASEY FOR EXAMPLE THE COURT DECLARED THAT IT IS UP TO EACH INDIVIDUAL TO DETERMINE THE CONCEPT OF EXISTENCE OF MEANING OF THE UNIVERSE AND OF THE MYSTERY OF HUMAN LIFE JOHN PAUL BY CONTRAST WARNS AGAINST THE RISK OF AN ALLIANCE BETWEEN DEMOCRACY AND ETHICAL RELATIVISM WHEN TRUTH ITSELF IS DEMOCRATIZED WHEN TRUTH IS NO MORE THAN THE WILL OF EACH INDIVIDUAL OR A MAJORITY OF INDIVIDUALS DEMOCRACY DEPRIVED OF THE CLAIM TO TRUTH STANDS NAKED TO ITS ENEMIES THUS DOES FREEDOM WHEN IT IS NOT ORDERED TO TRUTH UNDO FREEDOM MORAL TRUTH EVIDENT IN A NATURAL LAW THAT IS ACCESSIBLE TO ALL REASONABLE PERSONS INCLUDES COMMANDS BOTH POSITIVE AND NEGATIVE BUT NOT FOR NOTHING ARE THE 10 WORDS DELIVERED AT SINAI FRAMED IN THE NEGATIVE WE CANNOT ALWAYS DO THE GOOD THAT WE WOULD BUT WE CAN ALWAYS REFUSE TO DO EVIL SOME ACTS ARE INTRINSICALLY EVIL EVIL PER SE ALWAYS AND EVERYWHERE WITHOUT EXCEPTION AS EXAMPLES THE POPE CITES HOMICIDE GENOCIDE ABORTION SLAVERY PROSTITUTION AND TRAFFICKING IN WOMEN AND CHILDREN HE QUOTES POPE PAUL VI THOUGH IT IS TRUE THAT SOMETIMES IT IS LAWFUL TO TOLERATE A LESSER MORAL EVIL IN ORDER TO AVOID A GREATER EVIL OR IN ORDER TO PROMOTE A GREATER GOOD IT IS NEVER LAWFUL EVEN FOR THE GRAVEST REASONS TO DO EVIL THAT GOOD MAY COME OF IT EVIL MUST NEVER BE CALLED GOOD NOR GOOD EVIL HERE JOHN PAUL TAKES ON THOSE MORALISTS INCLUDING CATHOLIC THEOLOGIANS WHO SAY THAT AN EVIL ACT MAY BE JUSTIFIED BY THE END TO WHICH IT IS DIRECTED CONSEQUENTIALISM OR BY WEIGHING THE OTHER GOODS AT STAKE PROPORTIONALISM IT IS NEVER LICIT TO DO EVIL IN ORDER TO ACHIEVE GOOD TO THOSE OF A CONTRARY VIEW THE QUESTION MIGHT BE PUT WHEN IS RAPE MORALLY JUSTIFIED OR THE TORTURE OF CHILDREN OR AUSCHWITZ JOHN PAUL ANSWER IS NEVER INTENTIONS MAY BE NOBLE PEOPLE MAY CLAIM THAT THEY ARE ACTING IN GOOD CONSCIENCE CIRCUMSTANCES MAY MITIGATE PERSONAL RESPONSIBILITY BUT THE ACT REMAINS ALWAYS AND EVERYWHERE EVIL THE MORAL PERSON IS PREPARED TO DIE RATHER THAN DO EVIL THE WORDS OF THE LATIN POET JUVENAL SAYS JOHN PAUL APPLY TO EVERYONE CONSIDER IT THE GREATEST OF CRIMES TO PREFER SURVIVAL TO HONOR AND OUT OF LOVE OF PHYSICAL LIFE TO LOSE THE VERY REASON FOR LIVING THE ENCYCLICAL INCLUDES AN EXTENDED MEDITATION ON THE MEANING OF MARTYRDOM DRAWING EXAMPLES FROM THE HEBREW SCRIPTURES THE NEW TESTAMENT AND THE CHRONICLE OF COURAGEOUS RESISTANCE TO TYRANNY MARTYR MEANS WITNESS WE ARE NOT ALL CALLED TO MARTYRDOM BUT WE ARE CALLED TO BEAR WITNESS TO THE TRUTH THAT MAKES AND KEEPS US FREE AND THAT ACCORDING TO VERITATIS SPLENDOR IS THE SPLENDOR OF LIVING IN THE TRUTH FATHER NEUHAUS IS THE EDITOR IN CHIEF OF FIRST THINGS A MONTHLY JOURNAL OF RELIGION AND PUBLIC LIFE SEE RELATED LETTERS LETTERS TO THE EDITOR THE SEARCH FOR TRUTH WSJ NOV 2 1993 9310080143 YY93 MM11 9311020122 931006 POLITICS & POLICY AS PRESIDENT TRIES TO FOCUS ON DOMESTIC AGENDA FOREIGNPOLICY QUESTIONS DIVERT HIS ATTENTION BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S SCHEDULER ROY NEEL RECENTLY ISSUED A MEMO TO THE STAFF FOR THE FORESEEABLE FUTURE MR CLINTON WOULD BE SPENDING VIRTUALLY ALL HIS TIME ON HIS TOP LEGISLATIVE PRIORITIES HEALTH CARE THE FREETRADE AGREEMENT WITH MEXICO AND GOVERNMENT REFORM FOR NOW AT LEAST MR NEEL'S HOPES AND THE PRESIDENT'S ARE OUT THE WINDOW THE TWIN CRISES IN SOMALIA AND RUSSIA HAVE FORCIBLY SEIZED THE ADMINISTRATION'S ATTENTION IN THE PROCESS DIVERTING IT FROM WHAT WAS ALREADY GOING TO BE AN UPHILL STRUGGLE TO ENACT MUCH OF ITS DOMESTIC AGENDA IN RECENT WEEKS MR CLINTON'S APPROVAL NUMBERS HAVE CLIMBED IN THE POLLS AS HE HAS CARVED OUT A MORE EFFECTIVE MESSAGE FOCUSING PARTICULARLY ON HEALTH CARE AS WELL AS OTHER DOMESTIC ISSUES THAT THE PUBLIC CARES ABOUT BUT FOR A PRESIDENT WHO HAS EXPLICITLY STAKED HIS ADMINISTRATION ON HIS ABILITY TO DELIVER ON THOSE DOMESTIC ISSUES SOMALIA WHERE 12 US SERVICEMEN WERE KILLED AND AN UNDETERMINED NUMBER TAKEN CAPTIVE THIS WEEK AND RUSSIA WHERE PRESIDENT BORIS YELTSIN CRUSHED PARLIAMENTARY HARDLINERS ARE TWIN THREATS THEY ARE A PAINFUL REMINDER THAT WHILE MR CLINTON CAN TRY TO FOCUS ATTENTION ON HIS DOMESTIC AGENDA WORLD EVENTS THAT HE CAN'T CONTROL CAN EASILY DISRUPT HIS PLANS LIKE IT OR NOT THE UNITED STATES IS A WORLD POWER SAYS PRINCETON UNIVERSITY POLITICAL SCIENTIST FRED GREENSTEIN SUDDENLY THE WORLD IS IGNITED ON A NUMBER OF DIFFERENT FRONTS THE RESULT HE SAYS IS THAT MR CLINTON WILL BE IN TROUBLE GENERALLY AND IT WILL COMPLICATE EVERYTHING HE HAS TO DO THE EFFECTS OF THE FOREIGNPOLICY CRISES WERE ALREADY EVIDENT IN MR CLINTON'S THREEDAY SWING THROUGH THE ELECTORALLY IMPORTANT STATE OF CALIFORNIA THE TRIP WAS DESIGNED MOSTLY TO SHOWCASE HIS DOMESTIC AGENDA BUT INSTEAD WAS CONSUMED BY AND OBSCURED BY THE TRAVAILS AROUND THE WORLD NEWS ACCOUNTS PLAYED DOWN THE INTENDED MESSAGE OF MR CLINTON'S SPEECHES AND HE SEEMED THROWN OFF HIS RHYTHM BY THE EVENTS ABROAD WHITE HOUSE AIDES SAY THAT HE HAS BEEN CRANKY AND TIRED BECAUSE HE HAS HAD TO CONCENTRATE ON FOREIGN MATTERS WHICH THEY SAY TAKE MORE ENERGY FOR HIM TO DEAL WITH THAN MORE FAMILIAR DOMESTIC CONCERNS OF THE ISSUES THAT MR CLINTON WANTS TO FOCUS ON AS OPPOSED TO THOSE HE HAS TO FOCUS ON NONE MAY BE MORE ENDANGERED BY THE ERUPTION OF FOREIGN POLICY CRISES THAN THE NORTH AMERICAN FREE TRADE AGREEMENT WITH MEXICO AND CANADA WITH THE PUBLIC DUBIOUS ABOUT THE MERITS OF THE AGREEMENT IT WILL TAKE A MAJOR POLITICAL OFFENSIVE BY THE PRESIDENT TO RALLY SUPPORT FOR IT AN OFFENSIVE HE WILL BE ILLEQUIPPED TO MOUNT IF HE IS CONSTANTLY DEALING WITH FOREIGN PROBLEMS MOREOVER IN CONGRESS MR CLINTON IS ALREADY IN THE POSITION OF HAVING TO CALL IN VIRTUALLY EVERY POLITICAL CHIT AVAILABLE TO PASS THE EMBATTLED ACCORD THE LAST THING HE WANTS IS A BRUISING BATTLE WITH LAWMAKERS OVER SOMALIA POLICY TO SAY NOTHING OF A POSSIBLE US PEACEKEEPING ROLE IN BOSNIA BETWEEN NOW AND THE EXPECTED NAFTA VOTE LATER THIS YEAR IF HE DOES NOT SUSTAIN FOCUS THEN NAFTA WILL LOSE WARNS TIM BENNETT A TRADE CONSULTANT AND FORMER GOVERNMENT TRADE EXPERT MR BENNETT ADDS THOUGH THAT HE DOESN'T THINK THE FOREIGN DISTRACTIONS HAVE YET REACHED THE POINT OF THREATENING NAFTA'S SURVIVAL THE FOREIGN POLICY TURMOIL IS LESS OF A THREAT TO THE PRESIDENT'S OTHER MAJOR DOMESTIC INITIATIVE HIS PLAN TO OVERHAUL THE NATION'S HEALTHCARE SYSTEM THAT'S MOSTLY A FUNCTION OF TIMING MR CLINTON HAS ALREADY GIVEN HIS PROPOSAL A SPLASHY PUBLIC SENDOFF WHILE THE LEGISLATIVE NITTYGRITTY IS STILL MONTHS AWAY BUT THE WHITE HOUSE IS UNDER PRESSURE TO FIND CREATIVE WAYS TO SELL ITS AMBITIOUS PLAN TO THE PUBLIC AND MR CLINTON MAY NOT PLAY AS BIG A ROLE IF HE IS CONSTANTLY WORRYING ABOUT THE PLIGHT OF US SOLDIERS OVERSEAS MORE BROADLY CHANCES FOR BOTH HEALTH CARE AND NAFTA WILL DEPEND ON MR CLINTON'S GENERAL STANDING WITH THE PUBLIC AND THAT STANDING COULD BE BADLY ERODED IF EITHER RUSSIA OR SOMALIA TURNS INTO A POLICY DISASTER PARTICULARLY SOMALIA BECAUSE OF THE DIRECT DANGER TO THE LIVES OF US SERVICEMEN ALREADY PRINCETON'S MR GREENSTEIN SAYS THE PRESIDENT HAS APPEARED TENTATIVE AND ILL AT EASE IN DEALING WITH THE FOREIGN PROBLEMS WHICH COULD UNDERCUT HIS IMAGE AT HOME IT IS ALMOST AS IF HE HAS DELEGATED THE WORLD TO HIS NATIONAL SECURITY STAFF SAYS MR GREENSTEIN HE HAS NOT PLAYED THE COMMANDERINCHIEF ROLE CONVERSELY SOME CLINTON SUPPORTERS SAY THAT IF MR CLINTON IS SEEN TO BE HANDLING THE FOREIGN POLICY CRISES SUCCESSFULLY IT WILL ENHANCE HIS STATURE AND GIVE HIM MORE CLOUT TO PUSH HIS DOMESTIC PLANS THE MOST IMPORTANT RESPONSIBILITY FOR THE PRESIDENT IS TO BE COMMANDER IN CHIEF SAYS AL FROM PRESIDENT OF THE DEMOCRATIC LEADERSHIP COUNCIL A MODERATE PARTY GROUP WHENEVER HE EXERCISES THAT RESPONSIBILITY IN A CREDIBLE WAY IT IS A HELP EVEN AMONG PEOPLE WHO SAY THEY DON'T PAY MUCH ATTENTION TO FOREIGN POLICY YESTERDAY MR CLINTON SPOKE BY TELEPHONE TO DEMOCRATIC AND REPUBLICAN CONGRESSIONAL LEADERS ABOUT THE CRISIS IN SOMALIA AIDES SAID THEY ADDED THAT HE DOESN'T EXPECT TO MAKE ANY ANNOUNCEMENT OVER THE NEXT FEW DAYS ABOUT THE US INVOLVEMENT IN THAT COUNTRY ALTHOUGH HE WILL CONTINUE TO CONSULT WITH CONGRESS OUR POSITION REMAINS THAT WE DON'T WANT TO SEE THAT COUNTRY DESCEND BACK INTO THE KIND OF CHAOS THAT CAUSED LITERALLY HUNDREDS OF THOUSANDS OF PEOPLE TO STARVE TO DEATH WHITE HOUSE PRESS SECRETARY DEE DEE MYERS SAID AT THE SAME TIME THOUGH SHE ADDED THAT WE'VE BEEN IN THE PROCESS OF DRAWING DOWN US TROOPS THERE SINCE MAY AND THAT THE PLANS TO DRAW DOWN US FORCES REMAIN IN PLACE MEANWHILE MR CLINTON LEFT A SCHEDULED HEALTHCARE EVENT IN CALIFORNIA YESTERDAY EARLY TO RETURN TO WASHINGTON BEFORE BOARDING AIR FORCE ONE HE RECEIVED A BRIEFING ON THE SOMALI AND RUSSIAN SITUATIONS AND SPOKE BY TELEPHONE WITH NATIONAL SECURITY ADVISER ANTHONY LAKE ONCE ABOARD HIS PLANE HE CALLED MR YELTSIN WHITE HOUSE AIDES SAY THAT IN THEIR 20MINUTE CONVERSATION MR CLINTON UNDERLINED THE NEED FOR THE RUSSIANS TO PROCEED WITH FREE ELECTIONS THE PRESIDENT HELD FURTHER MEETINGS WHEN HE RETURNED TO WASHINGTON LATE YESTERDAY AFTERNOON AND MORE ARE PLANNED FOR TODAY THOSE MEETINGS OFFICIALS SAY WILL FOCUS ON SEVERAL ISSUES HOW TO SAVE THE AMERICANS BELIEVED HELD HOSTAGE BY SOMALI WARLORD MOHAMED FARAH AIDID HOW TO PROTECT REMAINING US TROOPS IN SOMALIA AND HOW TO GET OUT QUICKLY BUT STILL RETAIN THE DIGNITY OF THE US AND THE UNITED NATIONS THE US WOULD LIKE TO HAND OFF THE MILITARY MISSION AND THE POLITICAL NEGOTIATIONS AS SOON AS POSSIBLE TO THE UN BUT FIRST MUST FIGURE OUT EITHER HOW TO CAPTURE MR AIDID OR HUSTLE HIM OUT OF THE COUNTRY FOR ALL THE NEW FOCUS ON FOREIGN POLICY WHITE HOUSE OFFICIALS INSIST THEY ARE CONFIDENT THE PRESIDENT CAN STAY ON TRACK DOMESTICALLY AS WELL YOU CAN'T STOP THE WORLD SAYS GEORGE STEPHANOPOULOS THE PRESIDENT'S SENIOR ADVISER FOR POLICY AND STRATEGY ALL OF THESE ISSUES TAKE TIME AND ATTENTION BUT THAT'S WHAT THE PRESIDENT AND THE ADMINISTRATION ARE PAID TO DO AND WE CAN HANDLE ALL OF IT STILL THEY ARE ALREADY BUSY MODIFYING MR CLINTON'S SCHEDULE TO ALLOW HIM TIME TO DEAL WITH THE FOREIGN POLICY CONCERNS VICE PRESIDENT AL GORE WILL REPLACE MR CLINTON AT SOME COMING SCHEDULED EVENTS THE PRESIDENT CANCELED SEVERAL INTERVIEWS WITH REPORTERS SCHEDULED FOR TODAY AND HE WON'T APPEAR AT A WHITE HOUSE EVENT FOR FIREFIGHTERS MOREOVER AIDES ARE WORRIED ABOUT IMAGES THAT COULD BE MISREAD IF THE SOMALI SITUATION GETS OUT OF HAND ONE SUCH EVENT IS AN ARTSAWARD CEREMONY SCHEDULED TO BE HOSTED BY THE FIRST FAMILY TOMORROW NIGHT AIDES ARE CONCERNED ABOUT A PUBLIC BACKLASH IF NEWSCASTS SHOW AMERICAN SOLDIERS DEAD IN SOMALI STREETS FOLLOWED BY PICTURES OF THE PRESIDENT AND HILLARY RODHAM CLINTON WALTZING AT A SOCIAL GATHERING CARLA ANNE ROBBINS AND JEFFREY H BIRNBAUM CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR SOMALIA INCOHERENCY AND MISSION CREEP' WSJ NOV 2 1993 9310060062 YY93 MM11 9311010185 931101 POLITICS & POLICY TAXES SCHOOL CRIME ARE HIGH ON AGENDA AT THE BALLOT BOX BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL TAXES SCHOOLS AND CRIME WILL BE HIGH ON THE AGENDA WHEN VOTERS ACROSS THE COUNTRY CAST THEIR BALLOTS IN LOCAL ELECTIONS TOMORROW AND NOV 9 CALIFORNIA'S SCHOOLVOUCHER BALLOT INITIATIVE HAS DRAWN NATIONAL ATTENTION AND PROVOKED A STATEWIDE FUROR PROPOSITION 174 WOULD GIVE PARENTS WHO CHOOSE NOT TO SEND A CHILD TO PUBLIC SCHOOL A TAXFUNDED VOUCHER VALUED AT ABOUT 2600 USABLE TOWARD TUITION AT A QUALIFYING PRIVATE SCHOOL THE MEASURE ALSO WOULD PERMIT CONVERSION OF PUBLIC SCHOOLS INTO INDEPENDENT VOUCHERREDEEMING SCHOOLS SUPPORT FOR THE MEASURE HAS ERODED RAPIDLY IN RECENT WEEKS BUT CONSERVATIVE GROUPS BACKING THE VOUCHER INITIATIVE SAY THEY AREN'T DISCOURAGED BY THE PROSPECT OF DEFEAT IN THE GOLDEN STATE WIN LOSE OR DRAW IN CALIFORNIA WE'RE IN A GOOD POSITION TO CARRY ON IN OTHER STATES WHAT CALIFORNIA HAS STARTED SAID JILL HANSON EXECUTIVE DIRECTOR OF AMERICANS FOR SCHOOL CHOICE A GROUP BASED IN CHICAGO VOUCHERS ARE ALSO AN ISSUE IN TOMORROW'S VIRGINIA GUBERNATORIAL ELECTION REPUBLICAN CANDIDATE GEORGE F ALLEN A FORMER CONGRESSMAN WHO SUPPORTS SCHOOL VOUCHERS FOR LOWINCOME FAMILIES AND TAX BREAKS FOR PARENTS TEACHING THEIR CHILDREN AT HOME LEADS FORMER STATE ATTORNEY GENERAL MARY SUE TERRY IN RECENT POLLS OTHER STATES ARE THREATENING TAX REBELLIONS WASHINGTON STATE HAS TWO TAXRELATED INITIATIVES UP FOR A VOTE TOMORROW ONE WOULD REPEAL ALL TAXES AND FEES INCLUDING ALCOHOL AND TOBACCO TAXES THAT WERE IMPOSED THIS YEAR TO HELP PAY FOR ITS NEW HEALTHCARE PROGRAM ANOTHER MEASURE WOULD REQUIRE VOTER APPROVAL OF TAX INCREASES AFTER 1995 AND PLACE CERTAIN LIMITS ON STATEREVENUE GROWTH NATIONAL CONCERN OVER VIOLENCE AND CRIME IS FUELING WIDESPREAD INTEREST IN WASHINGTON STATE'S TOUGHONCRIME INITIATIVE 593 THE MEASURE DUBBED THREE STRIKES AND YOU'RE OUT CALLS FOR LIFE SENTENCES WITHOUT PAROLE FOR PEOPLE CONVICTED A THIRD TIME OF CERTAIN FELONIES SUCH AS MANSLAUGHTER RAPE AND CHILD MOLESTATION AMONG THE 16 PROPOSITIONS ON TEXAS' BALLOT TOMORROW IS A MUCHDEBATED PROPOSAL TO AMEND THE CONSTITUTION TO PROHIBIT A STATE INCOME TAX WITHOUT VOTERS' APPROVAL IF A TAX WERE APPROVED THE AMENDMENT REQUIRES THAT AT LEAST TWOTHIRDS OF THE NET REVENUE BE USED TO REDUCE LOCAL SCHOOL PROPERTY TAXES WITH THE REMAINDER GOING TO EDUCATION ANOTHER AMENDMENT ON THE TEXAS BALLOT A MEASURE SUPPORTED BY AN UNLIKELY COALITION OF BUSINESS LABOR AND ENVIRONMENTAL GROUPS WOULD GIVE TAX BREAKS FOR POLLUTIONCONTROL EQUIPMENT WITHOUT THE TAX RELIEF MANY COMPANIES ARE SAYING THEY WON'T BE ABLE TO MAKE THE INVESTMENTS IN THEIR TEXAS FACILITIES NEEDED TO COMPLY WITH FEDERAL AND STATE ENVIRONMENTAL STANDARDS OTHER ISSUES FACING VOTERS INCLUDE GAMBLING AND SECESSION FROM NEW YORK CITY IN INDIANA A NUMBER OF MUNICIPALITIES ALONG LAKE MICHIGAN'S COAST AND THE OHIO RIVER INCLUDING EAST CHICAGO HAMMOND JEFFERSONVILLE AND EVEN THE TOWN OF RISING SUN ARE HOLDING REFERENDUMS ON WHETHER TO PERMIT RIVERBOAT GAMBLING THE STATE LEGISLATURE HAS ALREADY APPROVED BUT VOTERS IN THE MUNICIPALITIES MUST OPT IN TO BE ELIGIBLE STATEN ISLAND RESIDENTS WILL CONSIDER WHETHER TO BE SLICED FROM THE BIG APPLE WITH A YES VOTE SENDING THE QUESTION TO THE STATE LEGISLATURE THE ISSUE IS A THORNY ONE PROPONENTS ARGUE THAT STATEN ISLAND RESIDENTS ARE SHORTCHANGED BY THE CITY ON SERVICES AND SAY THEY WOULD BE ABLE TO ATTRACT MORE BUSINESSES ON THEIR OWN OPPONENTS FEAR PROPERTY TAXES COULD SKYROCKET IF THE ISLAND GOES SOLO AND WARN THAT STATEN ISLAND'S SECESSION WOULD IMPERIL THE JOBS OF NEW YORK CITY WORKERS LIVING ON THE ISLAND 9311010184 931101 KMART TO SELL PAYLESS TO FIRM FOR 1 BILLION RETAILER IS ALSO NEGOTIATING SALE OF MANY PACE SITES TO ITS RIVAL WALMART BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL KMART CORP HAS TENTATIVELY AGREED TO SELL ITS PAYLESS DRUGSTORES UNIT FOR 1 BILLION TO A LOS ANGELES INVESTMENT FIRM AND IS IN TALKS TO SELL MANY OF ITS PACE MEMBERSHIP WAREHOUSE CLUBS TO RIVAL WALMART STORES INC PEOPLE FAMILIAR WITH THE SITUATION SAID THE DIVESTITURES WOULD MARK KMART'S FIRST STEPS IN SHEDDING NONCORE ASSETS AND RAISING MUCHNEEDED CASH ANALYSTS REACTED FAVORABLY TO NEWS OF THE PROPOSED PAYLESS SALE TO INVESTOR LEONARD GREEN'S MERCHANTBANKING FIRM WHICH CONTROLS LOS ANGELESBASED THRIFTY DRUG STORES BOTH KMART AND MR GREEN DECLINED TO COMMENT PEOPLE FAMILIAR WITH THE SITUATION SAID THE NATION'S SECONDLARGEST RETAILER IS ALSO IN TALKS TO SELL MANY OF ITS 110 PACE WAREHOUSE CLUBS TO NO 1RANKED WALMART AND SELL THE REMAINDER BACK TO PACE MANAGEMENT WITH SUCH A TRANSACTION KMART BASED IN TROY MICH WOULD RID ITSELF OF A UNIT THAT HAD OPERATING LOSSES OF 63 MILLION IN THE FIRST HALF OF THE YEAR OFFICIALS OF WALMART BASED IN BENTONVILLE ARK COULDN'T BE REACHED FOR COMMENT KMART CHAIRMAN JOSEPH E ANTONINI HAS FACED INCREASING PRESSURE TO SHED THE COMPANY'S SPECIALTY OPERATIONS WHICH KMART BEGAN BUYING IN 1984 TO DIVERSIFY OUT OF THE CROWDED DISCOUNT STORE MARKET THE SPECIALTY BUSINESSES MOST OF WHICH PLAY SECOND FIDDLE TO STRONGER COMPETITORS ARE DRAINING MONEY AND ATTENTION FROM THE CORE DISCOUNT STORES WHERE SALES PER SQUARE FOOT HAVE DROPPED FOR THREE YEARS IN A ROW LAST MONTH KMART SAID IT WAS ALSO CONSIDERING SELLING 25 STAKES THROUGH INITIAL PUBLIC OFFERINGS IN ITS SPORTS AUTHORITY SPORTINGGOOD STORES BORDERS BOOK STORES OFFICE MAX OFFICESUPPLY STORES AND BUILDERS SQUARE HOMEIMPROVEMENT STORES KMART CONFIRMED IN AUGUST THAT IT WAS SOLICITING BIDDERS FOR PAYLESS THE NATION'S EIGHTHLARGEST DRUGSTORE CHAIN WHICH HAS MOST OF ITS STORES IN THE WEST BUT ANALYSTS HAVE DOUBTED THAT A SALE COULD RAISE THE 1 BILLION KMART WAS SEEKING THE TENTATIVE AGREEMENT TO SELL PAYLESS FOR 1 BILLION TO LEONARD GREEN & PARTNERS WHICH WAS FIRST REPORTED BY THE LOS ANGELES TIMES IS A REAL COUP FOR KMART SAID ANALYST BARRY BRYANT OF LADENBURG THALMANN & CO WHO FIGURED PAYLESS WOULD FETCH ONLY ABOUT 800 MILLION ANALYSTS WERE VALUING PAYLESS BASED ON EARNINGS MULTIPLES OF PUBLICLY TRADED DRUGSTORE CHAINS SOME ANALYSTS SAID THE PROPOSED PAYLESS SALE SIGNALS THAT KMART WILL FOLLOW THROUGH ON THE LONGAWAITED RESTRUCTURING IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY KMART ROSE 375 CENTS TO 2450 A SALE OF PACE WHICH HAS SUFFERED FROM OVERCROWDING IN THE WAREHOUSE ARENA AND ITS OWN OPERATING INEFFICIENCIES LIKELY WOULD RESULT IN A BIG WRITEDOWN FOR KMART PACE WITH A BOOK VALUE OF ABOUT 700 MILLION PROBABLY WOULD FETCH A COUPLE HUNDRED MILLION DOLLARS ESTIMATED ANALYST JEFFREY EDELMAN OF C J LAWRENCE WITH A DISTRIBUTION SYSTEM THAT IS MUCH MORE SOPHISTICATED THAN KMART'S WALMART IS BETTER ABLE TO RUN ITS WAREHOUSE CLUBS AND SHOULD HAVE MORE SUCCESS WITH THE PACE LOCATIONS IT BUYS ANALYSTS SAID WAREHOUSE CLUBS SELL GENERAL MERCHANDISE AND FOOD IN CAVERNOUS NOFRILLS STORES WALMART WHICH OWNS 385 SAM'S CLUB WAREHOUSE STORES THE NO 1 CHAIN IN THE BUSINESS WOULD GAIN NEW LOCATIONS BY CONVERTING THE PACE PROPERTIES INDEED WALMART HAS ALREADY BOUGHT 14 PACE STORES AS FOR THE PAYLESS CHAIN MR GREEN WHO FOUNDED HIS FIRM AFTER IN 1989 AFTER LEAVING SUCCESSFUL BUYOUT FIRM GIBBONS GREEN VAN AMERONGEN LTD IS EXPECTED TO MERGE IT WITH THE 497STORE THRIFTY CHAIN HE ACQUIRED A YEAR AGO THRIFTY THE NO 11 DRUGSTORE CHAIN HAD SALES OF 2 BILLION IN 1992 PAYLESS WITH 565 STORES HAD OPERATING INCOME OF 113 MILLION ON SALES OF 234 BILLION THE PAYLESS SALE WOULD HELP INSURE THAT KMART WON'T HAVE TO CUT ITS DIVIDEND OR POSTPONE SPENDING ON ITS HALFFINISHED 3 BILLION PROGRAM TO UPDATE ITS 2430 DISCOUNT STORES MR BRYANT OF LADENBURG THALMANN FIGURES THAT KMART WITH ABOUT 145 BILLION IN CASH FLOW BASED ON ITS CURRENT PERFORMANCE WOULD HAVE FINISHED THE YEAR 200 MILLION SHORT OF COVERING ITS DIVIDEND 9311010183 931101 CARSON PIRIE SCOTT LEAVES CHAPTER 11 15 SHARES SET TO TRADE BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL MILWAUKEE SHARES OF CARSON PIRIE SCOTT & CO ARE SCHEDULED TO BEGIN TRADING THIS MORNING MARKING THE FINAL STEP IN THE DEPARTMENT STORE CHAIN'S EMERGENCE FROM CHAPTER 11 BANKRUPTCY PROTECTION THE COMPANY ONE OF THE MIDWEST'S BIGGEST RETAILING CHAINS USED TO BE KNOWN AS PA BERGNER & CO AND HAD BEEN OWNED SINCE 1938 BY THE SWISS RETAIL CONGLOMERATE MAUS FRERES SA IN 1989 HOWEVER BERGNER TOOK ON ABOUT 900 MILLION IN DEBT TO ACQUIRE THE CHICAGOBASED CARSON PIRIE SCOTT DEPARTMENT STORE CHAIN ONLY TO SUBSEQUENTLY FIND THE DEBT TOO BURDENSOME IN AUGUST 1991 IT FILED FOR CHAPTER 11 PROTECTION UNDER TERMS OF THE REORGANIZATION WHICH BECAME EFFECTIVE FRIDAY THE COMPANY ISSUED 20 MILLION COMMON SHARES TO SECURED DEBT HOLDERS THOSE SHARES REPRESENT 100 OF THE OWNERSHIP OF THE REORGANIZED COMPANY AS PART OF THE REORGANIZATION PLAN MAUS FRERES GOT 8 MILLION FOR HANDING OVER ITS FORMER HOLDING PRIVATE INVESTOR GROUPS MOST PROMINENTLY THE NEW YORK INVESTMENT FIRM OF DICKSTEIN PARTNERS INC ACQUIRED ALL THE SECURED DEBT AND THUS HOLD 100 OF THE EQUITY DICKSTEIN CURRENTLY HOLDS A SIGNIFICANT MINORITY STAKE ALTHOUGH A CARSON OFFICIAL SAID THE HOLDING COULDN'T IMMEDIATELY BE MORE PRECISELY QUANTIFIED EVEN THOUGH IT HAS ADOPTED THE NAME OF ITS 38STORE CARSON PIRIE UNIT BECAUSE OF THE BROADER NAME RECOGNITION THE PARENT COMPANY WILL REMAIN BASED IN MILWAUKEE AND WILL ALSO CONTINUE TO OPERATE BERGNER'S DEPARTMENT STORES AND BOSTON STORES UNDER THEIR ORIGINAL NAMEPLATE THE PARENT HAD A TOTAL OF 68 STORES IN OPERATION WHEN IT WENT INTO CHAPTER 11 BUT CLOSED SIX OPENED ONE AND RECENTLY ANNOUNCED PLANS TO CLOSE FOUR MORE STORES IN JANUARY TO GIVE IT A TOTAL OF 59 STORES STANTON J BLUESTONE PRESIDENT AND CHIEF EXECUTIVE CALLED THE CHAPTER 11 PROCESS ARDUOUS BUT SAID WE HAVE ACCOMPLISHED WHAT WE SET OUT TO DO THE LEANER COMPANY'S STRENGTHENED CAPITAL STRUCTURE WILL PERMIT US TO INVEST IN OUR STORES AND THE FUTURE OF OUR BUSINESS HE SAID CARSON PIRIE HAD 1992 SALES OF 11 BILLION IT HAD EARNINGS BEFORE INCOME TAX DEPRECIATION AND AMORTIZATION OF 81 MILLION SAID AN OFFICIAL IT WILL TRADE IN THE OVERTHECOUNTER MARKET UNDER THE SYMBOL CPSC 9311010182 931101 INTERNATIONAL FYODOROV AIMS FOR TOP POST AT RUSSIA'S BANK CURRENT FINANCE MINISTER SETS SIGHTS ON LEADING REFORM OF CENTRAL BANK BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL EBENHAUSEN GERMANY RUSSIAN FINANCE MINISTER BORIS FYODOROV MAKES NO SECRET OF HIS HOPE TO BECOME HEAD OF RUSSIA'S CENTRAL BANK AFTER THE DECEMBER PARLIAMENTARY ELECTIONS REFORMING THE RUSSIAN CENTRAL BANK AND TIGHTENING CONTROL OF MONETARY POLICY ARE THE KEYS TO STABILIZING RUSSIA'S TRANSITION TO A FREEMARKET ECONOMY MR FYODOROV SAID FRIDAY IN A JOINT INTERVIEW WITH THE WALL STREET JOURNAL EUROPE AND THE HANDELSBLATT NEWSPAPER THE INTERVIEW TOOK PLACE WHILE MR FYODOROV WAS VISITING GERMANY'S STIFTUNG WISSENSCHAFT UND POLITIK FOREIGN POLICY INSTITUTE THE 35YEAROLD FINANCE MINISTER IS PERHAPS RUSSIA'S MOST UNYIELDING FREEMARKET REFORMER HE HAS FOUGHT THE CENTRAL BANK'S POLICY OF SUBSIDIZING UNPRODUCTIVE INDUSTRY WITH CHEAP LOANS WHICH HE SAYS DELAYS INDUSTRIAL RESTRUCTURING AND FEEDS RUSSIA'S 20 MONTHLY INFLATION RATE THE CENTRAL BANK COULD BECOME THE MOST IMPORTANT PART OF THE GOVERNMENT HE SAID IF YOU CAN CONTROL THE CENTRAL BANK YOU CAN CONTROL A DOZEN OTHER THINGS MR FYODOROV SAID IT'S ONLY A QUESTION OF TIME BEFORE CENTRAL BANK CHIEF VIKTOR GERASHCHENKO IS FORCED TO STEP DOWN THE CENTRAL BANK NOW IS BEING RUN MORE LIKE AN ECONOMIC DEVELOPMENT AGENCY MR FYODOROV SAID WE HAVE TO WATCH THEM ALL THE TIME HOWEVER ANY BID TO UNSEAT THE FORMER SOVIET BANKING BUREAUCRAT MEANS FIRST NAVIGATING THROUGH RUSSIA'S PRICKLY POLITICAL LABYRINTH AS IF SENSING MR FYODOROV'S AMBITIONS MR GERASHCHENKO LAST WEEK CRITICIZED THE GOVERNMENT PARTICULARLY MR FYODOROV'S FINANCE MINISTRY FOR LACKING ANY FORM OF ECONOMIC POLICY AND BLAMED PRICE RISES BY INDUSTRIAL MONOPOLIES FOR RUSSIA'S HIGH INFLATION RATE ALTHOUGH THE CENTRAL BANK IN MAY PLEDGED TO THROTTLE ITS LENDING ACTIVITIES MR FYODOROV SAID THE BANK CONTINUES TO UNDERWRITE INDUSTRY WITH ITS PRINTING PRESS MR FYODOROV SAID THE GOVERNMENT IS DRAFTING LEGISLATION THAT WOULD RESTRUCTURE THE CENTRAL BANK ALONG THE LINES OF THE US FEDERAL RESERVE THE PLAN TO BE PUT BEFORE THE NEXT PARLIAMENT WOULD CREATE 21 DISTRICT CENTRAL BANKS MR FYODOROV SAID THE CENTRAL BANK'S OPERATIONS WOULD BE LIMITED TO TRADITIONAL INSTRUMENTS THAT WOULD STEER LIQUIDITY THROUGH REFINANCING ARRANGEMENTS WITH THE BANKING SYSTEM IT WOULD CEASE ALL DIRECT INDUSTRIAL LENDING ALTOGETHER AND BASE POLICIES ON TRADITIONAL MONETARY GUIDES SUCH AS INFLATION AND MONEY SUPPLY MR FYODOROV IS TAKING AN UNCOMPROMISING STAND WITH ARMENIA BELARUS KAZAKHSTAN TAJIKISTAN AND UZBEKISTAN WHO AGREED TO ADOPT THE RUSSIAN RUBLE AS A COMMON CURRENCY AFTER UNIFYING CREDIT BANKING TAX AND CUSTOMS POLICIES HOWEVER KAZAKHSTAN HAS DECIDED TO DELAY USING RUSSIA'S CURRENCY AND INTRODUCE ITS OWN MONEY MR FYODOROV INSISTED THAT THE FORMER SOVIET REPUBLICS WHO HAVE AGREED TO THE PLANNED MONETARY UNION HAVE TO UNDERSTAND THAT THEY ARE CEDING THEIR SOVEREIGNTY TO RUSSIA HE SAID MOSCOW HAS MADE CLEAR TO ITS FUTURE PARTNERS THAT THEIR CENTRAL BANKS WOULD BECOME BRANCH OFFICES OF THE RUSSIAN CENTRAL BANK WE SAID WE WON'T GIVE YOU CASH UNLESS THERE IS REAL INTEGRATION WHICH COULD TAKE MONTHS OR YEARS HE SAID IN THE MEANTIME HE SAID THE OTHER COUNTRIES COULD ISSUE AN INTERIM CURRENCY WHICH RUSSIA WOULD BE HAPPY TO PRINT FOR THEM UNTIL CONDITIONS FOR GETTING THE RUBLE ARE FILLED AFTERWARDS HE SAID THE INTERIM CURRENCY WOULD BE ACCEPTED AS CURRENCY IN RUSSIA THE GOVERNMENT WHICH TARGETED A 15 TO 18 MONTHLY INFLATION RATE FOR JANUARY HOPES TO REDUCE MONTHLY PRICE EXPANSION TO AN AMBITIOUS 1 TO 3 RANGE BY DECEMBER 1994 HE SAID IT WOULDN'T BE DIFFICULT IF WE WERE GIVEN A FREE HAND HE SAID BUT YOU HAVE TO GIVE THE GENERALS SOMETHING YET MR FYODOROV SAID DEFENSE SPENDING ISN'T HIS BIGGEST HEADACHE AGRICULTURE IS THE SINGLE BIGGEST PROBLEM IF NOTHING IS DONE NEXT YEAR IT WILL BE A DISASTER CHEAP CREDITS PRICE SUPPORTS AND OTHER SUBSIDIES FOR RUSSIA'S INEFFICIENT FARM SECTOR COST THE GOVERNMENT 10 TRILLIONRUBLES 845 BILLION THIS YEAR EQUATING TO NEARLY 60 OF THE GOVERNMENT'S 17 TRILLIONRUBLE 1993 BUDGET DEFICIT HE SAID PRESIDENT YELTSIN'S RECENT DECREE TO PRIVATIZE LAND ENDING SEVEN DECADES OF SOVIET FARM COLLECTIVIZATION COULD BRING DRAMATIC CHANGES IF NEW LANDOWNERS CAN TAKE OUT LOANS COLLATERALIZED BY LAND AND ADAPT TO MARKET FORCES 9311010181 931101 NIPPON PAPER SAYS SIXMONTH PRETAX NET REACHED 373 MILLION TOKYO NIPPON PAPER INDUSTRIES CO FORMED BY THE MERGER OF JUJO PAPER CO AND SANYO KOKUSAKU PULP CO ON APRIL 1 SAID ITS UNCONSOLIDATED PRETAX PROFIT DURING THE FIRST HALF ENDED SEPT 30 CAME TO 403 BILLION YEN 373 MILLION AS THE RESULTS FOR THE SIXMONTH PERIOD ARE THE FIRST FOR THE MERGED COMPANY ACCURATE COMPARISONS WITH YEAREARLIER EARNINGS AND SALES AREN'T AVAILABLE BUT NIPPON PAPER PROVIDED THE FORMER COMPANIES' RESULTS DURING THE CORRESPONDING PERIOD A YEAR EARLIER JUJO PAPER POSTED PRETAX PROFIT OF 291 BILLION YEN DURING THE YEAREARLIER SIX MONTHS WHILE SANYO KOKUSAKU PULP'S PRETAX PROFIT WAS 219 BILLION YEN NIPPON PAPER SAID ITS SALES DURING THE LATEST REPORTING PERIOD AMOUNTED TO 31852 BILLION YEN COMPARED WITH JUJO'S SALES OF 19020 BILLION YEN AND SANYO KOKUSAKU PULP'S SALES OF 14525 BILLION YEN NIPPON PAPER'S NET INCOME REACHED 539 BILLION YEN IN THE LATEST REPORTING PERIOD COMPARED WITH THE 158 BILLIONYEN NET INCOME BY JUJO PAPER AND THE 192 BILLIONYEN NET INCOME BY SANYO KOKUSAKU PULP JAPANESE PAPER AND PULP MAKERS CONTINUED TO CURB PRODUCTION IN RESPONSE TO YEARS OF HEAVY INDUSTRYWIDE INVESTMENT WHICH BOOSTED OUTPUT AND CAUSED SUPPLY TO OUTSTRIP DEMAND BUT PRICES OF SOME PAPER PRODUCTS CONTINUED TO REMAIN WEAK DUE TO FLAGGING DEMAND THE COMPANY SAID THE MERGED CONCERN'S OVERALL PAPER SALES WERE DOWN 72 TO 168 MILLION METRIC TONS FROM THE FORMER COMPANIES' COMBINED PAPER SALES OF 181 MILLION TONS IN TERMS OF VALUE PAPER SALES OF THE MERGED COMPANY CAME TO 23273 BILLION YEN OFF 79 FROM THE 25278 BILLION YEN SALES BY THE FORMER COMPANIES THE COMPANY SAID THE YEN'S RISE IN THE FOREIGN CURRENCY MARKETS HELPED REDUCE COSTS BUT THE MERGED COMPANY'S PRETAX PROFIT WAS LOWER THAN FORMER COMPANIES' TOTAL AS PROCEEDS FROM SALES OF SECURITIES DWINDLED BUT NET INCOME SURGED WHEN COMPARED WITH THE COMBINED NET PROFIT A YEAR EARLIER AS THE MERGED COMPANY POSTED EXTRAORDINARY PROFIT FROM SALES OF ITS UNIT'S STOCK FOR THE FULL FISCAL YEAR NIPPON PAPER IS PREDICTING A PRETAX PROFIT OF 85 BILLION YEN COMPARED WITH A YEAREARLIER PROFIT OF 831 BILLION YEN FOR JUJO AND A PROFIT OF 302 BILLION YEN FOR SANYO KOKUSAKU PULP 9311010180 931101 XEROX TO UNVEIL MARKETING PLANS FOR SELENIUM FILM BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK UNVEILING WHAT IT TERMS AN ADVANCE IN FILM TECHNOLOGY XEROX CORP WILL SEEK A SUBSTANTIAL SLICE OF THE 18 BILLION MARKET FOR SOCALLED INTERMEDIATE FILMS USED IN COLOR PRINTING AT A CHICAGO TRADE SHOW TODAY A NEW XEROX UNIT NAMED VERDEPRINT TECHNOLOGIES IS EXPECTED TO ANNOUNCE MARKETING PLANS FOR A SELENIUM FILM THE PRODUCT WOULD SUBSTITUTE FOR THE SILVERHALIDE FILMS NOW USED TO MAKE MASTERING PLATES FOR MANY MAGAZINES NEWSPAPERS CATALOGS AND OTHER TYPES OF HIGHVOLUME MULTICOLOR PRINTED MATERIAL BETTIE STEIGER A XEROX TECHNOLOGY AND MARKETDEVELOPMENT OFFICIAL IN SAN FRANCISCO SAYS THE NEW FILM WILL REDUCE ENVIRONMENTAL PROBLEMS FOR USERS THUS INCREASING PRODUCTIVITY BECAUSE THEY CAN SPEND LESS TIME WORRYING ABOUT CHEMICAL WASTE CURRENTLY SILVERHALIDE FILM USED IN THE GRAPHICARTS INDUSTRY IS PROCESSED WITH CHEMICALS AND WATER BY CONTRAST XEROX SAYS THE NEW FILM IS PROCESSED BY A COMBINATION OF LIGHT AND HEAT FROM A SOURCE INSIDE THE IMAGESETTING EQUIPMENT USED BY MANY LARGEVOLUME PRINTERS DEVELOPMENT OF THE FILM 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 COPIERS THE DRUMS RETAIN AN IMAGE ONLY TEMPORARILY UNTIL A NEW ONE IS MADE BUT MASTERS MADE WITH THE NEW FILM WILL BE PERMANENT OPENING UP THE MARKET FOR GRAPHICARTS FILMS TO XEROX LIMITED QUANTITIES OF THE NEW FILM WILL BE AVAILABLE FOR CUSTOMER TESTS BEGINNING IN APRIL XEROX SAYS LARGER QUANTITIES SHOULD BE ON THE MARKET TWO MONTHS LATER XEROX SAYS PRICES WILL BE COMPARABLE WITH THOSE OF SILVERHALIDE FILMS ALMOST ALL OF THE PHOTOGRAPHIC FILM USED BY CONSUMERS ALSO INVOLVES SILVER HALIDE BUT XEROX SAID ITS NEW FILM HAS NO CONSUMER APPLICATION NOW GENERALLY ALTERNATIVES TO SILVERHALIDE FILM REQUIRE MUCH STRONGER LIGHT TO WORK SO THEY ARE IMPRACTICAL IN CAMERAS XEROX SAID CURRENT IMAGESETTING EQUIPMENT NECESSARY TO ACTIVATE ITS NEW FILM IS TOO BULKY FOR USE IN CONSUMERS' CAMERAS XEROX ISN'T AWARE OF ANY WORK SEEKING TO MINIATURIZE THE PROCESS 9311010179 931101 TECHNOLOGY MEDICARE TO STOP PAYING FOR SOME TESTS PACKAGED TO INCREASE REVENUE OF LABS BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL THE MEDICARE SYSTEM PLANS TO STOP PAYING FOR CERTAIN BLOOD TESTS WHEN THEY AREN'T MEDICALLY NECESSARY BUT ARE INCLUDED IN BASIC PACKAGES MAINLY TO INCREASE REVENUES OF MEDICAL LABORATORIES THE CRACKDOWN COULD LEAD TO A REDUCTION OF TENS OF MILLIONS OF DOLLARS IN BILLINGS FOR THE NATION'S LABORATORIES OVER THE NEXT FEW YEARS OVER THE NEXT MONTH OR SO WE EXPECT TO HAVE IN PLACE NATIONAL GUIDELINES FOR ABOUT A DOZEN TESTS THAT APPEAR TO BE IMPROPERLY BILLED CAROL WALTON DIRECTOR OF THE FEDERAL HEALTH CARE FINANCING ADMINISTRATION'S BUREAU OF PROGRAM OPERATIONS SAID IN AN INTERVIEW CLAIMS FOR SOME TESTS ARE ALREADY BEING DENIED SHE SAID THE NEW RULES WILL SIGNIFICANTLY AFFECT THE WAY THE NATION'S LARGEST LABORATORY COMPANIES BILL FOR BLOOD TESTS AND THE MANNER IN WHICH THEY OFFER THEM TO DOCTORS THE INDUSTRYWIDE PRACTICE OF BUNDLING TOGETHER VARIOUS TESTS HAS RESULTED IN HIGHER BILLINGS TO MEDICARE THAT COULD NOT POSSIBLY COME FROM CLINICAL INDICATIONS MS WALTON SAID WHILE THE EXISTENCE OF A GOVERNMENT INVESTIGATION OF THE LAB INDUSTRY HAS BEEN KNOWN SINCE THIS SUMMER OFFICIALS PREVIOUSLY SAID VERY LITTLE PUBLICLY ABOUT WHAT MIGHT COME FROM IT THE INVESTIGATION ALSO INVOLVES THE US JUSTICE DEPARTMENT AND THE INVESTIGATIVE ARM OF THE DEPARTMENT OF HEALTH ANRVICES SIGNS OF A CHANGE IN MEDICARE'S HANDLING OF LAB BILLS SURFACED LAST WEEK WHEN NATIONAL HEALTH LABORATORIES INC SAN DIEGO SAID IT WAS DROPPING TWO TESTS FROM ITS PACKAGES AFTER MEDICARE REFUSED TO PAY FOR THEM THE TESTS THAT NHL REMOVED MEASURE SERUM FERRITIN A SUBSTANCE THAT STORES OR TRANSPORTS IRON IN THE BLOOD AND HIGHDENSITY LIPOPROTEIN OR GOOD CHOLESTEROL MS WALTON SAID SHE ORDERED THE DENIALS AFTER EXTENSIVE DATA ANALYSIS AND DISCUSSIONS WITH DOCTORS PHYSICIANS WE TALKED TO INDICATED THAT THEY WOULD RARELY NEED A FERRITIN OR HDL WITH A BLOOD CHEMISTRY TEST MS WALTON SAID UP TO 74 OF THE NHL DOCTORS WE CONTACTED SAID THEY HADN'T ORDERED THE TEST THEY CHECKED A BOX BUT THEY DIDN'T KNOW THEY ORDERED IT BY CHECKING A BOX TO REQUEST A TEST PACKAGE DOCTORS MAY RECEIVE UNECESSARY TEST RESULTS THAT COST MEDICARE EXTRA MONEY THE FINDINGS BOLSTER ALLEGATIONS MADE BY THE JUSTICE DEPARTMENT AGAINST NHL LAST YEAR WHEN IT PAID 1114 MILLION TO SETTLE CHARGES THAT IT DEFRAUDED MEDICARE BY MANIPULATING DOCTORS TO ORDER THE TESTS UNNECESSARILY BILLINGS FOR THOSE TESTS REMAINED HIGH EVEN AFTER THE SETTLEMENT AND THE GOVERNMENT COMPLAINED TO THE COMPANY MS WALTON SAID THAT IN ANALYZING OTHER DATA IT APPEARS THERE ARE IDENTICAL OR SIMILAR TESTS BEING BILLED BY OTHER NATIONAL LAB CHAINS SHE DECLINED TO IDENTIFY THE TESTS OR THE COMPANIES INVOLVED INDUSTRY SOURCES SAID THE DOZEN OR SO TESTS UNDER SCRUTINY CAN BE USED TO DIAGNOSE A PATIENT'S RISK OF HEART DISEASE IRON DEFICIENCY AND THYROID DISORDERS AMONG OTHER CONDITIONS THE OFFICE HEADED BY MS WALTON IS WORKING WITH ITS INSURANCECOMPANY CONTRACTORS AND PHYSICIANADVISERS ACROSS THE COUNTRY TO EVENTUALLY INSTALL COMPUTER PROGRAMS THAT WILL FLAG INAPPROPRIATE TEST COMBINATIONS WHEN THEY APPEAR WE'RE NOT LOOKING TO SAVE MONIES BY DENYING PAYMENT ON MEDICALLY APPROPRIATE TESTS SHE SAID MS WALTON SAID SHE COULDN'T ESTIMATE HOW MUCH SUCH CLAIMS WERE ADDING TO MEDICARE COSTS BUT EVEN A SMALL PERCENTAGE WOULD BE A GREAT DEAL OF MONEY THE COMBINED COST OF THE GOVERNMENT'S MEDICARE AND MEDICAID PROGRAMS IS EXPECTED TO REACH ABOUT 219 BILLION IN THIS FISCAL YEAR SEVERAL LAB COMPANIES SAID THEY HAVEN'T YET DETECTED ANY CHANGES IN PAYMENT PATTERNS BUT ARE SEEKING INFORMATION FROM THE GOVERNMENT A SPOKESWOMAN FOR CORNING INC'S METPATH DIVISION SAID IT HAS ENTERED INTO DISCUSSIONS WITH 19 INSURANCE CARRIERS THAT ADMINISTER ITS MEDICARE CLAIMS CORNING INC'S METPATH DIVISION AND UNILAB CORP TARZANA CALIF TOGETHER PAID 398 MILLION LAST MONTH TO SETTLE ALLEGATIONS THAT THEY SUBMITTED MEDICARE CLAIMS FOR UNNECESSARY TESTS 9311010178 931101 INTERNATIONAL JAPANESE ECONOMY SEEMS HEADED FOR ITS WORST POSTWAR RECESSION EARNINGS ARE FALLING FASTER THAN COSTS HIRING CUTS ARE SCARING CONSUMERS BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE JAPANESE ECONOMY APPEARS TO BE CAUGHT IN A VICIOUS CIRCLE COMPANIES AREN'T SLASHING COSTS AND PAYROLLS FAST ENOUGH TO REVERSE THEIR EARNINGS SLIDE A PREREQUISITE FOR A BROADER ECONOMIC RECOVERY BUT EVEN THE LIMITED CUTS THESE COMPANIES ARE MAKING REDUCING BONUSES AND TRIMMING HIRING ARE SPOOKING CONSUMERS THAT IS DAMPING HOUSEHOLD SPENDING AND PROLONGING WHAT IS BECOMING JAPAN'S WORST RECESSION SINCE THE WAR FRIDAY JAPAN SENT OUT A FLURRY OF DISTRESS SIGNALS HIGHLIGHTING THIS CATCH22 NISSAN MOTOR CO REPORTED A 2893 BILLION YEN 2673 MILLION PARENT PRETAX LOSS FOR THE FISCAL FIRST HALF ENDED SEPT 30 DOUBLE THE LOSS IT POSTED A YEAR EARLIER JAPAN'S TOP AIR CARRIER JAPAN AIRLINES CO POSTED A FIRSTHALF LOSS OF 792 BILLION YEN AND PROJECTED A FULLYEAR LOSS OF 30 BILLION YEN CAMERA MAKER NIKON CORP SAID IT HAD A LOSS OF 161 BILLION YEN NISSAN'S CASE ILLUSTRATES THE RISKS OF JAPAN'S SLOWMOTION APPROACH TO RESTRUCTURING JAPAN'S NO 2 AUTO MAKER HAS BEEN DILIGENTLY CHIPPING AWAY AT COSTS ECONOMIZING ON CAR PARTS ANNOUNCING PLANS TO CLOSE AN AUTO PLANT IN 1995 AND SHEDDING JOBS BY ATTRITION THESE SAVINGS HOWEVER ARE TAKING TIME TO KICK IN MEANWHILE SALES ARE TUMBLING DOWN 67 IN THE LATEST PERIOD AND THE HIGH YEN IS EATING INTO EXPORT EARNINGS SO NISSAN'S RECOVERY HAS STALLED EARLIER THIS YEAR THE COMPANY HAD FORECAST A 40 BILLION YEN OPERATING PROFIT FOR THE SIX MONTHS ENDING NEXT MARCH 31 NOW NISSAN SAYS IT WILL JUST BREAK EVEN ECONOMISTS SAY COMPANIES LIKE NISSAN ARE STRUGGLING IN LARGE PART BECAUSE THEY WON'T ADDRESS A MAJOR LONGTERM STRUCTURAL WEAKNESS BLOATED PAYROLLS BY LAYING OFF WORKERS COMPANIES ARE TRYING TO CUT THEIR WORK FORCES BUT THROUGH LESS PAINFUL MEANS NIPPON STEEL CORP FOR EXAMPLE SAID FRIDAY IT WILL SHED 4000 JOBS OVER THREE YEARS THROUGH ATTRITION OR TRANSFERS TO AFFILIATES THE MOVE COMES ON TOP OF 3000 JOB CUTS PREVIOUSLY ANNOUNCED BY JAPAN'S LARGEST STEELMAKER THUS THE LABOR MARKET IS STEADILY WEAKENING THE GOVERNMENT REPORTED FRIDAY THAT THE UNEMPLOYMENT RATE ROSE TO 26 IN SEPTEMBER FROM 25 IN AUGUST THE HIGHEST LEVEL IN FIVE YEARS MODERATE ESTIMATES OF UNEMPLOYMENT FOR NEXT YEAR UP TO 35 WOULD PUT THE RATE ABOVE THE RECORD HIGH OF 31 REACHED IN 1987 TETSUO TSUKIMURA OF SMITH BARNEY SHEARSON INC PREDICTS THAT AS EARNINGS SLIDE JAPANESE FIRMS MAY BE FORCED TO SHED A MILLION JOBS IN THE NEXT FEW YEARS THAT WOULD BRING THE UNEMPLOYMENT RATE TO AS HIGH AS 5 IN 1995 HE SAYS ACCORDING TO WEEKEND JAPANESE NEWS REPORTS A RECENT LABOR MINISTRY STUDY FOUND THAT 46 OF BIG COMPANIES POLLED FEEL THEY HAVE TOO MANY EMPLOYEES THE REPORT WARNS DARKLY THAT THE DAYS OF LIFETIME EMPLOYMENT IN JAPAN MAY BE NUMBERED THE PATIENCE OF COMPANIES CARRYING EXCESS WORKERS IS NEARING A LIMIT IT SAYS SOME ECONOMISTS FEAR THE ONSET OF A CHAIN REACTION OF JOB AND WAGE REDUCTIONS THAT WOULD INTENSIFY CONSUMER STINGINESS WHICH IN TURN WOULD DENT CORPORATE EARNINGS NECESSITATING FURTHER CUTS BY BUSINESS NOT SURPRISINGLY SOME KEY INDICATORS SHOW THAT CONSUMERS ARE QUIVERING LAST WEEK THE GOVERNMENT REPORTED THAT RETAIL SALES FELL 37 IN SEPTEMBER FROM YEAREARLIER LEVELS DROPPING FOR A RECORD 16TH CONSECUTIVE MONTH TODAY THE AUTO INDUSTRY IS BRACING FOR NEWS THAT CAR SALES A KEY MEASURE OF CONSUMER CONFIDENCE FELL YET AGAIN IN OCTOBER TO GET AN IDEA OF THE MOOD CONSIDER NOBUHIRO KURIYA HIS PRINTING SHOP IS STRUGGLING SO IN JANUARY HIS EMPLOYER WILL CUT ALLOWANCES THAT MAKE UP A BIG PORTION OF HIS SALARY THAT'S WHY I'M HOLDING DOWN MY SPENDING SAYS THE 22YEAROLD WHO HAS PUT OFF PLANS TO BUY A NEW VIDEOCASSETTE RECORDER BY SOME YARDSTICKS THIS DOWNTURN IS PROVING TO BE JAPAN'S WORST SINCE WORLD WAR II JUDGING FROM THE BANK OF JAPAN'S INDEX OF SENTIMENT AMONG NONMANUFACTURERS THIS RECESSION ALREADY HAS EXCEEDED THE RECORD DEPTHS OF GLOOM PLUMBED BACK IN 1975 THE NATION'S LONGEST DOWNTURN LASTED FOR 36 MONTHS FROM EARLY 1980 TO EARLY 1983 IF THE CURRENT SLUMP CONTINUES INTO NEXT SPRING AS EVEN GOVERNMENT OFFICIALS NOW PREDICT IT WILL BREAK THE ENDURANCE RECORD TOO SOME ECONOMISTS BELIEVE THE WORST IS OVER GEOFFREY BARKER OF BARING SECURITIES SAYS HE SEES CLEAR INDICATIONS THAT THE ECONOMY IS STARTING TO PICK UP SUCH AS A BOOM IN HOUSING STARTS AND AN UPTICK IN TELEVISION SALES HE BELIEVES THE ECONOMY WILL START GROWING AGAIN IN THE OCTOBERTODECEMBER QUARTER AND WILL EXPAND A HEALTHY 25 IN 1994 ALSO THE YEN SEEMS TO HAVE STOPPED ITS STEEP RISE AGAINST THE DOLLAR IT IS NOW AT AROUND 108 TO THE DOLLAR AFTER TOUCHING 100 YEN TO THE BUCK THIS SUMMER THAT IS GREAT NEWS FOR EXPORTERS BECAUSE PRESSURE TO RAISE PRICES ABROAD WILL SUBSIDE WHAT'S MORE THE GOVERNMENT IS EXPECTED TO CUT INCOME TAXES NEXT YEAR BY AS MUCH AS SIX TRILLION YEN THAT WOULD GIVE CONSUMERS A MUCHNEEDED CONFIDENCE BOOST AND GET THE ECONOMY GROWING MODESTLY THE THINKING GOES BUT MOST ECONOMISTS AND EXECUTIVES ARE STILL EMPHASIZING THE DARK CLOUDS NOT THE SILVER LININGS THE TAX CUT ISN'T A GIVEN EVEN FACTORING IN SUCH A MOVE MANY GROWTH ESTIMATES POINT TO A WEAK RECOVERY PRIVATE ECONOMISTS' FORECASTS OF GROWTH FOR 1994 AVERAGE 14 ACCORDING TO ONE SURVEY SMITH BARNEY'S MR TSUKIMURA PREDICTS JAPAN'S ECONOMY WILL SHRINK 12 THIS YEAR AND CONTRACT ANOTHER 15 IN CALENDAR 1994 HONDA MOTOR CO PRESIDENT NOBUHIKO KAWAMOTO CAUTIONS THAT THE YEN CRISIS ISN'T DONE YET THAT'S BECAUSE JAPAN'S TRADE SURPLUS THE MAIN FACTOR BOOSTING THE YEN REMAINS HUGE DESPITE SIGNS THAT IT HAS PEAKED PAUL SUMMERVILLE HEAD OF RESEARCH FOR LEHMAN BROTHERS IN TOKYO SAYS THE HOUSING BOOM AND GOVERNMENT SPENDING WHICH TOGETHER ACCOUNT FOR JUST 15 OF GROSS NATIONAL PRODUCT AREN'T ENOUGH TO TURN THE ECONOMY AROUND DITTO FOR THE EXPECTED TAX CUT IF IT COMES WHEN PEOPLE ARE WORRIED ABOUT JOBS OR INCOME MR SUMMERVILLE ARGUES A TAX CUT MAKES LITTLE DIFFERENCE JUST ASK MR KURIYA THE PRINTER I'M NOT DOING ANYTHING HE SAYS UNTIL I SEE MY BONUS 9311010177 931101 TECHNOLOGY COMPUTER CRACKING' IS SEEN ON THE RISE AS INTERNET GROWS SO HAVE THE OPPORTUNITIES FOR SECURITY BREACHES BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TOMORROW IS THE FIFTH ANNIVERSARY OF THE INTERNET'S MOST CELEBRATED SECURITY LAPSE THE INTERNET IS VASTLY BIGGER NOW AND AS ONE INTERNET PROVIDER JUST LEARNED SO ARE THE OPPORTUNITIES FOR COMPUTER MISCHIEF PUBLIC ACCESS NETWORK CORP A COMMERCIAL SERVICE KNOWN AS PANIX THAT SELLS ITS CUSTOMERS ACCESS TO THE INTERNET WAS PENETRATED BY AN UNAUTHORIZED SYSTEM CRACKER WHO OBTAINED HIGHLEVEL ACCESS TO THE SYSTEM FORCING IT TO SHUT DOWN FOR THREE DAYS IN LATE OCTOBER BUT MANY OTHER INTERNETCONNECTED NETWORKS MAY HAVE BEEN AFFECTED THE GLOBESPANNING INTERNET WHICH SOME ESTIMATE IS GROWING BY UP TO A MILLION USERS A MONTH COMPRISES THOUSANDS OF INDIVIDUAL COMPUTER NETWORKS THE INTRUDER STOLE THE SECRET PASSWORDS OF PANIX USERS WHO WERE USING THE SERVICE TO CONNECT TO OTHER NETWORKS PANIX SAYS IT HAS ABOUT 3000 CUSTOMERS IN AN ELECTRONIC MESSAGE TO MORE THAN 175 OTHER NETWORKS ON THE INTERNET PANIX'S SYSTEM ADMINISTRATORS WARNED THAT A SECURITY INCIDENT OF VERY LARGE PROPORTION HAD OCCURRED THE MAGNITUDE AND CONSEQUENCES OF THE BREACH ARE UNKNOWN BECAUSE THE CRACKER'S PROGRAMS WERE HIDDEN IN THE PANIX SYSTEM COLLECTING INFORMATION FOR SOME TIME FOR ALL I KNOW THIS CRACKER HAS PASSWORDS TO HUNDREDS MAYBE THOUSANDS OF LOCATIONS SAYS ALEXIS ROSEN COOWNER OF PANIX IN NOVEMBER 1988 A CORNELL UNIVERSITY GRADUATE STUDENT ROBERT T MORRIS MADE COMPUTER SECURITY FRONTPAGE NEWS WHEN HE LAUNCHED AN ELECTRONIC VIRUS THAT CRASHED SOME 6000 COMPUTERS ON THE INTERNET MR MORRIS WHO BECAME THE FIRST PERSON CHARGED WITH VIOLATING THE FEDERAL COMPUTER FRAUD AND ABUSE ACT DID NOT REALIZE THAT HIS ROGUE PROGRAM COULD BE DESTRUCTIVE HE WAS FINED 10000 AND SERVED 400 HOURS OF COMMUNITY SERVICE BUT NOW WARN INDUSTRY EXPERTS THE CRACKING COMMUNITY IS MUCH BETTER ORGANIZED AND SOPHISTICATED WHAT'S MORE AS A CHAIN OF NETWORKS THE INTERNET IS ONLY AS STRONG AS ITS WEAKEST OR MOST UNSECURED LINK ONCE A CRACKER HAS BROKEN INTO ONE NETWORK ON THE INTERNET OTHERS ARE VULNERABLE WE'RE SEEING A TREMENDOUS INCREASE IN CRACKING SAYS DAIN GARY MANAGER OF THE COMPUTER EMERGENCY RESPONSE TEAM CERT WHICH HELPS NETWORK ADMINISTRATORS COPE WITH BREAKINS ON THE INTERNET THE TREND DIRECTLY CORRESPONDS TO THE GROWTH IN THE INTERNET MR GARY SAYS THAT HIS GROUP WHICH IS FUNDED BY THE GOVERNMENT AND WAS STARTED AFTER THE MORRIS INCIDENT LOGS THREE TO FOUR SECURITY BREACHES A DAY THIS YEAR MR GARY EXPECTS A 50 INCREASE OVER LAST YEAR'S 773 REPORTED SECURITY BREACHES BUT FEARING EMBARRASSMENT AND LOSS OF PUBLIC CONFIDENCE BUSINESSES RARELY REPORT BREAKINS EXPERTS ESTIMATE THAT ONLY 15 OF BREACHES ARE REPORTED TO LAWENFORCEMENT AUTHORITIES CONSEQUENTLY THE COST AND IMPACT OF SUCH BREACHES ARE HARD TO ASSESS MR ROSEN OF PANIX WHICH IS BASED IN NEW YORK CITY ESTIMATES THAT THE INCIDENT COST 4000 IN CREDIT TO USERS WHO COULDN'T USE THE SYSTEM FOR THE THREE DAYS IT WAS DOWN THAT AMOUNT HE ADDS DOESN'T TAKE INTO ACCOUNT THE 22HOUR DAYS HE AND HIS SYSTEM ADMINISTRATORS SPENT REBUILDING THEIR SOFTWARE AT COLUMBIA UNIVERSITY ONE OF MANY ACADEMIC SITES WHOSE SECURITY MAY HAVE BEEN COMPROMISED BY THE PANIX BREAKIN SYSTEM ADMINISTRATORS ESTIMATE THAT THEY PAY 50000 EACH YEAR IN OVERTIME SPENT COPING WITH SECURITY BREACHES WE HAVE ACCOUNT BREAKINS ROUTINELY SAYS ALAN CROSSWELL COLUMBIA'S MANAGER OF COMPUTING SYSTEMS IT'S A BIG DEAL JAMES SETTLE SUPERVISORY SPECIAL AGENT OF THE FBI'S NATIONAL COMPUTER CRIMES SQUAD SAYS MOST NETWORKS CONNECTED TO THE INTERNET ARE POTENTIALLY AT RISK THAT INCLUDES TELECOMMUNICATIONS COMPUTER NETWORKS STOCK MARKETS OR ANY KIND OF COMPUTER NETWORK THAT DOESN'T HAVE SECURE SYSTEMS YOU CAN BE CONNECTED TO SOMEONE ELSE WHO IS CONNECTED TO THE INTERNET AND BECOME VULNERABLE HE SAYS LIKE USING A STOLEN CREDIT CARD CRACKERS CAN RUN UP THOUSANDS OF DOLLARS IN CHARGES TO UNSUSPECTING USERS IN FACT SINCE SOME USERS GIVE NETWORKS CREDITCARD NUMBERS FOR BILLING PURPOSES THESE TOO COULD BE REVEALED CRACKERS WITH PROPER ACCESS COULD ALSO TAP INTO ELECTRONIC MAIL AND OTHER CONFIDENTIAL PERSONAL FILES AS SECURITY MEASURES HAVE IMPROVED SINCE THE 1988 CORNELL INCIDENT SO HAVE THE CRACKERS THE TEENAGE HACKER TESTING SYSTEM LIMITS FOR THE THRILL OF IT SAYS MR SETTLE OF THE FBI HAS GROWN UP NOW IN HIS MID20S THE TYPICAL CRACKER IS IN IT FOR MONETARY GAIN INCLUDING CHARGING FOR INDUSTRIAL ESPIONAGE MR SETTLE SAYS WHILE DECLINING TO DISCUSS PAST CASES CRACKERS PROBE FOR WEAKNESSES IN A NETWORK'S OPERATING SYSTEM THE PROGRAM THAT MANAGES ALL OTHER SOFTWARE PROGRAMS ONCE A LOOPHOLE IS FOUND THE NEWS GETS SPREAD IN UNDERGROUND PUBLICATIONS AT CRACKER CONVENTIONS AND ON COMPUTER BULLETIN BOARDS CRACKERDESIGNED PROGRAMS THAT EXPLOIT THESE DEFECTS AND SEARCH FOR CRUCIAL INFORMATION ARE DISTRIBUTED IN MUCH THE SAME WAY IN THE CASE OF PANIX ADMINISTRATORS EVENTUALLY FOUND THE SNIFFER PROGRAM THAT THE CRACKER HAD INSTALLED TO WATCH AND TAKE NOTES AS PANIX'S USERS LOGGED ONTO OTHER COMPUTER NETWORKS BY MONITORING THOSE ACTIVITIES THE CRACKER STOLE THE PASSWORDS TO THOSE OTHER NETWORKS IN MAY THE VILLAGE A CAMBRIDGE MASS INTERNET ACCESS PROVIDER SPOTTED A CRACKER IT WASN'T A MILD PRANK BY ANY STRETCH OF THE IMAGINATION SAYS BRENDAN E QUINN THE SYSTEM ADMINISTRATOR WHO SPENT THREE DAYS REBUILDING HIS NETWORK WHEN THE CRACKER SENSED ADMINISTRATORS WERE TRACKING HIM HE DELETED A CRUCIAL SYSTEM FILE PARALYZING VILLAGE'S NETWORK SECURITYCONSCIOUS COMPANIES WITH SENSITIVE INFORMATION THAT ARE TIED TO THE INTERNET USUALLY TRY TO BUILD A FIREWALL A COMBINATION OF HARDWARE AND SOFTWARE MEASURES THAT MAKE CRACKING MUCH MORE DIFFICULT COMMERCIAL ONLINE SERVICES ARE LESS AT RISK BECAUSE THEY ONLY OFFER GATEWAYS TO THE INTERNET ESSENTIALLY DOORS THAT OPEN PERIODICALLY TO ALLOW ELECTRONIC MAIL TO PASS BOTH WAYS WE BUILT ENOUGH CHECKPOINTS INTO THE SYSTEM THAT IT'S VIRTUALLY IMPOSSIBLE TO CRACK SAYS A SPOKESWOMAN FOR AMERICA ONLINE INC SINCE THE INTERNET IS NOT CLOSELY GOVERNED BUT RATHER OPERATED BY A LOOSE CONFEDERATION OF ITS USERS INTERNETWIDE SECURITY MEASURES ARE DIFFICULT TO IMPLEMENT 9311010176 931101 KIDDER PEABODY TO KEEP BUSINESS IN NEW YORK CITY BY JENNIFER CODY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK KIDDER PEABODY GROUP INC SAID IT REACHED AN AGREEMENT WITH NEW YORK CITY TO KEEP ITS 3000PERSON OPERATIONS HERE IN RETURN FOR TAX INCENTIVES WORTH 31 MILLION THE BROKERAGE AND SECURITIES FIRM SECURED A PACKAGE OF ENERGY SAVINGS SALES AND REALPROPERTY TAX BENEFITS IN RETURN FOR A COMMITMENT TO STAY IN NEW YORK FOR AT LEAST 15 YEARS IT SAID IN A JOINT RELEASE WITH NEW YORK'S ECONOMIC DEVELOPMENT CORP OVER THAT PERIOD THE RELEASE SAID KIDDER PEABODY WILL GENERATE AN ESTIMATED 450 MILLION OR MORE IN TAX REVENUE UNDER THE AGREEMENT KIDDER PEABODY WHICH NOW OPERATES OUT OF SEVERAL LOCATIONS IN LOWER MANHATTAN WILL IN 1995 MOVE ITS CORPORATE HEADQUARTERS TO JOIN PARENT COMPANY GENERAL ELECTRIC CO IN THE GENERAL ELECTRIC BUILDING AT 30 ROCKEFELLER PLAZA ALTHOUGH IT WILL STILL MAINTAIN A PRESENCE DOWNTOWN THE FIRM WILL REAP AN ADDITIONAL 10 MILLION IN EXISTING BENEFITS AVAILABLE TO THEM AT THE ROCKEFELLER CENTER LOCATION AS WELL AS A GROWTH INCENTIVE WORTH SEVERAL MILLION DOLLARS DEPENDING ON THE RATE OF THE FIRM'S EXPANSION THE JOINT RELEASE NOTED KIDDER PEABODY HAD BEEN CLOSE TO MOVING OUR BACK OFFICE OPERATIONS TO JERSEY CITY AND WAS ACTIVELY CONSIDERING MOVING HEADQUARTERS TO CONNECTICUT FOLLOWING THE 1995 EXPIRATION OF ITS LEASE AT ITS CURRENT LOCATIONS IN LOWER MATTAN A KIDDER PEABODY SPOKESWOMAN SAID BOTH STATES ARE OFFERING VERY COMPETITIVE INCENTIVE PACKAGES SHE NOTED THE DECISION TO REMAIN IN NEW YORK FOLLOWED EIGHT MONTHS OF NEGOTIATIONS WITH CITY OFFICIALS HERE SHE ADDED IN THE ANNOUNCEMENT NEW YORK MAYOR DAVID DINKINS SAID THE FIRM'S DECISION DEMONSTRATES IN A DRAMATIC FASHION THAT OUR JOB RETENTION STRATEGIES ARE WORKING AND THAT WE ARE RETAINING THE KIND OF HIGHQUALITY WORK FORCE THAT WILL ENABLE NEW YORK TO REMAIN PREEMINENT IN THE FINANCIAL SERVICES AND BANKING INDUSTRY IN THE PAST FOUR YEARS THE CITY HAS RETAINED MORE THAN 35000 JOBS BY OFFERING SIMILAR ANTIMIGRATION PACKAGES TO FIRMS SUCH AS MORGAN STANLEY GROUP INC LEHMAN BROTHERS AND PRUDENTIAL SECURITIES GROUP INC HE ADDED 9311010175 931101 VOTERS MAY GIVE THIS POLICEMAN A JOB WITH NO STRINGS ATTACHED BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO HE HAS BROKEN UP BARROOM BELLIGERENCIES SETTLED DOMESTIC DISPUTES AND CALMED LOST CHILDREN ALL WITH A CAP GUN AND A WOODEN GRIN BASSWOOD TO BE EXACT HE HAS NO AUTHORITY THOUGH SO TOMORROW VOTERS HERE WILL GO TO THE POLLS TO VOTE ON PROPOSITION BB SHALL IT BE THE POLICY OF THE PEOPLE OF SAN FRANCISCO TO ALLOW POLICE OFFICER BOB GEARY TO DECIDE WHEN HE MAY USE HIS PUPPET BRENDAN O'SMARTY WHILE ON DUTY TWO YEARS AGO MR GEARY DECIDED TO FOLLOW DEPARTMENT INSTRUCTIONS TO USE CREATIVE AND INGENIOUS METHODS FOR HANDLING BEAT SITUATIONS SO HE SPENT 1750 TO BUY A DUMMY AND HAD A SEAMSTRESS OUTFIT IT IN A TODDLER'S SIZEFOUR POLICE UNIFORM HE TAUGHT HIMSELF VENTRILOQUISM SOON OFFICER O'SMARTY BADGE NO 1/2 WAS POUNDING A BEAT KIDS LOVED HIM DRUNKS LISTENED TO HIM TV CAME CALLING THEN THE SAW HIT THE WOOD THE PUPPET MAKES THE DEPARTMENT LOOK STUPID MR GEARY'S IMMEDIATE SUPERIOR TOLD HIM LAST YEAR HENCEFORTH MR GEARY WOULD HAVE TO ASK FOR WRITTEN APPROVAL BEFORE PATROLLING WITH HIS 38INCH PARTNER BUT THE BOARD OF SUPERVISORS PASSED A RESOLUTION IN SUPPORT OF MR GEARY AND HIS DUMMY AND MR GEARY DECIDED TO TAKE HIS CASE TO THE VOTERS HE GATHERED 15750 SIGNATURES OFFICER O'SMARTY DIDN'T SIGN AND GOT THE MEASURE ON THE BALLOT SPENDING 10000 IN THE PROCESS THE DEPARTMENT WASN'T IMPRESSED POLICE CHIEF ANTHONY D RIBERA CALLS THE PROPOSITION FRIVOLOUS AND UNNECESSARY HE SAYS ITS PASSAGE WOULD UNDERMINE THE DEPARTMENT'S AUTHORITY MR GEARY RESPONDED BY NOTING THAT A DEPARTMENT POLICY ALLOWS POLICE VEHICLES TO CARRY TEDDY BEARS TO BE USED AS AN OFFICER SEES FIT EVEN IF HE LOSES MR GEARY SAYS HE HAS NO PLANS TO TURN HIS PARTNER INTO KINDLING IF A CHIEF OF POLICE ASSUMES THAT 17000 POLICE OFFICERS DON'T HAVE TO WRITE WELL IN ADVANCE WHEN THEY PLAN TO USE A LETHAL WEAPON MR GEARY SAYS I THINK IT'S RIDICULOUS THAT I HAVE TO WRITE IN ADVANCE TO USE A PUPPET 9311010173 931101 RANK WILL POST GAIN IN RESULTS FOR FISCAL 1993 SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH LEISURE COMPANY RANK ORGANISATION PLC AT A MEETING WITH ANALYSTS SAID IT EXPECTS FISCAL 1993'S RESULTS TO BE AHEAD OF 1992'S EVEN THOUGH THERE HASN'T BEEN A MATERIAL IMPROVEMENT IN ITS MARKETS RANK SAID THAT MOST OF ITS BUSINESSES HAVE IMPROVED THEIR COMPETITIVE POSITION AND FINANCIAL PERFORMANCE EVEN THOUGH CONTINENTAL EUROPEAN AND JAPANESE MARKETS AREN'T IMPROVING AND THE US AND UK ECONOMIC RECOVERIES ARE UNEVEN AND WEAK RANK POSTED PRETAX PROFIT OF 2344 MILLION 3487 MILLION IN THE YEAR ENDED OCT 31 1992 ALTHOUGH THE COMPANY IS RESTATING EARNINGS TO COMPLY WITH NEW GOVERNMENT REPORTING STANDARDS RANK'S NEXT EARNINGS REPORT WILL BE IN JANUARY ANALYSTS SAID THEY WERE MOST DISAPPOINTED WITH RANK'S VIDEO DISTRIBUTION ACTIVITIES ESPECIALLY IN THE US VIDEO DISTRIBUTION IS PART OF THE COMPANY'S FILM AND TELEVISION OPERATING DIVISION WHICH ACCOUNTED FOR 14 OF SALES AND 238 MILLION OF PRETAX PROFIT A YEAR AGO ONE ANALYST SAID THE PERFORMANCE OF RANK'S VIDEO DUPLICATION BUSINESS A SUBSET WITHIN THAT AREA WASN'T AS PUNCHY AS IT COULD HAVE BEEN AS HIGHER OPERATING COSTS OFFSET HIGHER VOLUME RANK'S HOLIDAYS HOTELS AND RECREATION AND LEISURE ACTIVITIES HOWEVER HAVE IMPROVED RANK'S VACATION BUSINESSES ARE SEEING VOLUMES 8 HIGHER THAN LAST YEAR'S A CONSIDERABLE OUTPERFORMANCE OF THE UK HOLIDAY MARKET THE COMPANY SAID SPENDING PER CAPITA AT ITS BINGO PARLORS IS UP 6 AND TRADING AT CASINOS HAS ALSO IMPROVED THE COMPANY ADDED BUSINESS AT THE HARD ROCK CAFE OUTLETS IS AHEAD OF 1992 RANK ADDED ANALYSTS WERE PLEASED WITH RANK'S JUSTANNOUNCED SALE OF THE ROYAL LANCASTER HOTEL FOR 608 MILLION WHICH WAS CONSIDERED A GOOD PRICE AT RANK XEROX A PHOTOCOPY BUSINESS THAT RANK IS TRYING TO BOW OUT OF EUROPEAN OPERATIONS ARE PERFORMING AT A SLIGHTLY LOWER PACE THAN A YEAR AGO BUT AT FUJI XEROX THE JAPANESE UNIT CONTRIBUTION TO THE BOTTOM LINE WAS SIGNIFICANTLY AHEAD BECAUSE OF FAVORABLE EXCHANGERATE TRANSLATIONS AND REVENUE IS 3 HIGHER RANK XEROX IS AN OFFICEMACHINE JOINT VENTURE WITH STAMFORD CONNBASED XEROX CORP MANAGED BY XEROX 9311010172 931101 INTERNATIONAL QUEENS MOAT PLANS TO RESTRUCTURE AFTER HUGE LOSS BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL QUEENS MOAT HOUSES PLC PLANS A RESTRUCTURING AFTER REPORTING A 104 BILLION 155 BILLION PRETAX LOSS FOR 1992 THE SECONDLARGEST CORPORATE LOSS IN BRITISH HISTORY THE ANNOUNCEMENT CAME SEVEN MONTHS AFTER SHARES IN THE UK'S NO 3 HOTEL COMPANY WERE SUSPENDED AND THE FINANCIAL AND HOTEL COMMUNITIES WERE LED TO EXPECT A STAGGERING LOSS IN FACT ONLY BRITISH AEROSPACE PLC THE UK'S LARGEST EXPORTER HAS EVER BLED MORE RED INK IN ONE YEAR IN 1992 THE COMPANY REPORTED A PRETAX LOSS OF 12 BILLION THE LOSS AND THE CONDITIONS SURROUNDING IT ARE ALMOST CERTAIN TO LEAD TO MESSY LEGAL ACTIONS ALREADY FOUR MEMBERS OF THE OLD MANAGEMENT TEAM ARE SUING FOR UNFAIR DISMISSAL THE OVERHAULED BOARD MEANWHILE SAID IT HAS NOTIFIED THE DEPARTMENT OF TRADE AND INDUSTRY AND OTHER REGULATORS OF A LONG LIST OF ALLEGED BREACHES OF COMPANY LAW ALTOGETHER THE NEW MANAGEMENT PAINTED A PICTURE OF A COMPANY THAT HAD SERIOUS SHORTCOMINGS IN BOTH MANAGEMENT AND FINANCIAL CONTROLS AND THAT VASTLY OVERSTATED PROFITS BUT QUEENS MOAT'S 65 BANKS APPEAR SET TO CONTINUE BACKING THE HOTEL CHAIN WHICH IS BASED IN ROMFORD AFTER SPENDING SEVEN MONTHS PORING OVER THE COMPANY'S ACCOUNTS THE BANK STEERING COMMITTEE LED BY BARCLAYS BANK PLC SAID QUEENS MOAT CAN BE RECONSTRUCTED TO GIVE IT A VIABLE FUTURE THE STEERING GROUP STRESSED THAT THE BEST WAY FORWARD FOR ALL THE BANKS IS TO CONTINUE TO SUPPORT THE GROUP AND MAINTAIN ITS STABILITY THE COMPANY BLAMED MUCH OF THE RED INK ON THE REDUCED VALUATION OF ITS ASSETS ON THE ADVICE OF SURVEYORS JONES LANG WOOTEN THE COMPANY PUT THE VALUE OF ITS PROPERTY AT 861 MILLION PREVIOUSLY QUEENS MOAT HAD VALUED ITS PORTFOLIO AT 2 BILLION BASED ON A DEC 31 1991 VALUATION BY WEATHERALL GREEN & SMITH WEATHERALL GREEN SUBSEQUENTLY REDUCED ITS VALUATION ALTHOUGH EVEN THE REVISED LEVEL WAS SIGNIFICANTLY HIGHER THAN THAT OF JONES LANG WOOTEN WEATHERALL GREEN DEFENDED THEIR VALUATIONS OUR BELIEF IS THAT THE MARKET VALUES OF HOTELS IS RATHER BETTER THAN OUR COLLEAGUES AT JONES LANG WOOTEN THINK SAID RICHARD BALDWIN A PARTNER AT THE CHARTERED SURVEYORS COMPANY THE NEW VALUATION WAS A PRINCIPAL FACTOR BEHIND QUEENS MOAT'S EXTRAORDINARY LOSS OF 939 MILLION WHICH CAME ON TOP OF A PRETAX LOSS OF 1015 MILLION THE COMPANY RESTATED ITS PREVIOUS YEAR'S RESULTS REPORTING A PRETAX LOSS OF 563 MILLION COMPARED WITH A PRETAX PROFIT OF 904 MILLION UNDER THE OLD ACCOUNTING SYSTEM 9311010171 931101 US NUCLEAR FORCE GETS FIRST REVIEW SINCE THE COLD WAR BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS STARTING THE FIRST POSTCOLD WAR REVIEW OF THE US ARSENAL OF NUCLEAR WEAPONS ONE THAT COULD CHANGE THE SIZE AND THE STRUCTURE OF US NUCLEAR FORCES FOR DECADES TO COME DEFENSE SECRETARY LES ASPIN NOTED THAT WHILE THE OLD THREAT OF THOUSANDS OF NUCLEAR WEAPONS TARGETED ON THE US FROM THE FORMER SOVIET UNION HAS SUBSIDED A NEW THREAT CONSISTING OF A RELATIVE HANDFUL OF NUCLEAR WEAPONS IN THE HANDS OF TERRORISTS OR ROGUE NATIONS LOOMS ON THE HORIZON THE STUDY OF THE NUCLEAR FORCE WHICH COSTS MORE THAN 10 BILLION ANNUALLY TO MAINTAIN IS THE FIRST IN 15 YEARS MR ASPIN SAID IT WILL BE THE MOST THOROUGH REVIEW OF THE NUCLEAR ARSENAL EVER THE CENTRAL INTELLIGENCE AGENCY ESTIMATES THAT AT LEAST 25 NATIONS MANY OF THEM HOSTILE TO THE INTERESTS OF THE US AND ITS ALLIES ARE DEVELOPING NUCLEAR WEAPONS MISSILES OR CHEMICAL AND BIOLOGICAL WEAPONS IN THE FUTURE TERRORIST GROUPS MAY JOIN THIS EFFORT MR ASPIN SAID ONE FOCUS OF THE STUDY WILL BE TO DETERMINE WHETHER NUCLEAR DETERRENCE THE DOCTRINE USED BY THE US AND THE FORMER SOVIET UNION TO PREVENT A NUCLEAR WAR WILL APPLY IN FUTURE CONFLICTS THE DOCTRINE PRESUMES THE OTHER SIDE IS RATIONAL AND THAT WE CAN IDENTIFY THE RESPONSIBLE PARTIES MR ASPIN NOTED DURING A NEWS CONFERENCE LAST WEEK FACING TERRORIST GROUPS OR UNRULY STATES LIKE LIBYA OR NORTH KOREA HE POINTED OUT WE CAN'T COUNT ON EITHER OF THOSE ASSUMPTIONS ALTHOUGH MR ASPIN WOULDN'T COMMENT ON THE LIKELY OUTCOME OF THE STUDY IT UNDOUBTEDLY WILL RECOMMEND SHRINKING THE CURRENT NUCLEAR FORCE WHICH CONSISTS OF 11500 WARHEADS ACCORDING TO WILLIAM ARKIN A NUCLEAR CONSULTANT TO THE NATURAL RESOURCES DEFENSE COUNCIL THE FORCE INCLUDES MORE THAN 3000 WARHEADS ON MISSILES THAT REMAIN TARGETED ON THE FORMER SOVIET UNION MR ARKIN SAYS NEWLY RELEASED PENTAGON DOCUMENTS SHOW THAT THE ALERT RATE OF MISSILES AND SUBMARINE FORCES CARRYING LONGRANGE OR STRATEGIC NUCLEAR WEAPONS REMAINS AS HIGH OR HIGHER THAN IT WAS DURING THE COLD WAR THE PENTAGON DOESN'T DISPUTE MR ARKIN'S ESTIMATES THE NEW PENTAGON STUDY ACCORDING TO MR ASPIN WILL COVER SIX AREAS INCLUDING THE FUTURE ROLE OF NUCLEAR WEAPONS IN US STRATEGY AND FORCES THE OPERATIONS AND SAFETY OF SUCH WEAPONS AND THE RELATIONSHIP OF THE US NUCLEAR ARSENAL TO GLOBAL PROLIFERATION CONCERNS 9311010170 931101 BUSINESS BRIEF TRANSAMERICA CORP REPORTS 59 INCREASE IN 3RDQUARTER PROFIT SAN FRANCISCO TRANSAMERICA CORP REPORTED A 59 JUMP IN THIRDQUARTER NET INCOME CITING ONETIME GAINS AND IMPROVED EARNINGS IN ITS INSURANCE AND REALESTATESERVICES OPERATIONS THE INSURANCE AND FINANCIALSERVICES CONCERN SAID NET INCOME WAS 1389 MILLION OR 170 A SHARE UP FROM 874 MILLION OR 104 A SHARE THE YEAR BEFORE THE RESULTS INCLUDED AFTERTAX INVESTMENT GAINS OF 93 MILLION A NONRECURRING TAX BENEFIT OF 942 MILLION 607 MILLION IN AFTERTAX SPECIAL CHARGES AND A 137 MILLION CHARGE FOR THE RETROACTIVE EFFECT OF THE NEW HIGHER FEDERAL INCOMETAX RATE EXCLUDING THOSE ITEMS THE COMPANY SAID PROFIT FROM CONTINUING OPERATIONS WAS 1093 MILLION OR 132 A SHARE TRANSAMERICA'S PROFIT FROM INSURANCE OPERATIONS WAS 571 MILLION UP FROM 505 MILLION A YEAR EARLIER PROFIT FROM ITS FINANCE BUSINESSES WAS 20 MILLION DOWN FROM 623 MILLION IN 1992 AND INCLUDED A 36 MILLION AFTERTAX WRITEDOWN OF THE CARRYING VALUE OF RENTTOOWN STORES THAT THE COMPANY'S COMMERCIALFINANCE UNIT IS HOLDING FOR SALE AND A 247 MILLION AFTERTAX CHARGE FOR MOVES SUCH AS THE REORGANIZATION OF ITS COMMERCIALLENDING AND REALESTATESERVICES OPERATIONS THE COMPANY SAID IT EXPECTS TO REFINANCE 125 MILLION OF LONGTERM DEBT BEFORE YEAR'S END WHICH IT ESTIMATED WOULD RESULT IN A 215 MILLION AFTERTAX CHARGE IN THE FOURTH QUARTER 9311010169 931101 RTC COMPLETES SALE IN PILOT PLAN TO OFFER SMALL LOTS OF ASSETS WASHINGTON THE RESOLUTION TRUST CORP SAID IT COMPLETED THE FIRST PILOT SALES IN A PROGRAM THAT OFFERS SECURITIES IN SMALL LOTS IN ORDER TO ATTRACT A WIDER RANGE OF INVESTORS SEEKING TO PURCHASE ASSETS OF FAILED THRIFTS MR BEAL & CO A MINORITYOWNED INVESTMENT BANKING FIRM MANAGED THE FIRST TWO TRANSACTIONS IN THE S SERIES PROGRAM WHICH INVOLVES SALES OF INTERESTS IN POOLS OF BAD COMMERCIAL LOANS SUCH LOANS ARE THOSE ON WHICH THE BORROWER HAS CEASED MAKING PAYMENTS OR IS PAYING ONLY A FRACTION OF WHAT IS DUE THE PROGRAM IS DESIGNED TO APPEAL TO INVESTORS WHO ARE PREPARED TO SPEND ABOUT 10 MILLION MANY OF THE RTC'S OTHER PROGRAMS REQUIRE INVESTMENTS OF SEVERAL TIMES THAT THE BUYERS HOPE TO COLLECT MORE FROM THE NONPERFORMING LOANS THAN THEIR INITIAL INVESTMENT IN THE FIRST S SERIES SALE JCF PARTNERS A LANHAM MD LOANSERVICING FIRM WITH FINANCIAL BACKING FROM BAUPOST INC IN BOSTON BID 117 MILLION FOR A 49 INTEREST IN A POOL OF LOANS WITH A FACE VALUE OF 1122 MILLION AFTER REPAYING CERTAIN FINANCING COSTS TO THE RTC THE WINNERS WILL GET TO KEEP 49 OF ALL THE LOANS THEY COLLECT THE RTC WILL GET THE BALANCE ONTRA INC AN AUSTIN TEXAS LOAN SERVICER WITH THE FINANCIAL BACKING OF AMERICAN INTERNATIONAL GROUP INC BID 71 MILLION FOR A 49 SHARE IN A 748 MILLION POOL OF LOANS WE WERE EXTREMELY PLEASED WITH THE WAY THE SALES TURNED OUT SAID SANDRA NOBLES THE ACTING DIRECTOR OF THE RTC SECURITIZATION PROGRAMS THE AGENCY CURRENTLY IS WORKING ON ITS THIRD AND FOURTH S SERIES SALES 9311010168 931101 INTERNATIONAL CHINA APPEARS ON WAY TO EASING AUSTERITY PROGRAM BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG CHINESE LEADER DENG XIAOPING HAS RENEWED HIS CALL FOR FAST ECONOMIC GROWTH AND THE COUNTRY'S CENTRAL BANK HAS SUGGESTED IT WILL CONTINUE TO EASE CREDIT FURTHER SIGNALS THAT BEIJING INTENDS TO RELAX ITS FOURMONTHOLD AUSTERITY PROGRAM THESE SIGNS COME JUST WEEKS BEFORE A CRUCIAL COMMUNIST PARTY PLENUM AT WHICH THE PARTY LEADERSHIP IS EXPECTED TO INTRODUCE A PACKAGE OF MAJOR ECONOMIC REFORMS LOOSENING THE ECONOMIC REINS COULD HELP WIN VITAL SUPPORT FOR THE PACKAGE FROM PROVINCIAL LEADERS WHO HAVE CHAFED UNDER THE AUSTERITY PROGRAM INTRODUCED BY VICE PREMIER ZHU RONGJI TO CURB INFLATION AND SPECULATION IN STOCKS AND PROPERTY BUT SOME ECONOMISTS FEAR IT COULD ALSO BRING ABOUT A RESURGENCE OF THE EXCESSES THAT PROMPTED AUSTERITY WHICH THEY NOTE HASN'T YET DONE ALL IT WAS SUPPOSED TO DO THE DANGER THEY SAY IS THAT CHINA WILL START ON A SECOND SHARPER BOOMBUST CYCLE THE SECOND ROUND IS ALWAYS MUCH MORE BUBBLY BECAUSE ALL THE PROBLEMS AND CONTRADICTIONS HAVE ACCUMULATED FROM THE FIRST SAYS TSANG SHUKI A SENIOR LECTURER AT THE HONG KONG BAPTIST COLLEGE SIGNS HAD ALREADY EMERGED EARLY LAST MONTH THAT BEIJING WAS TONING DOWN ITS 16POINT AUSTERITY PROGRAM AMONG OTHER THINGS TOP LEADERS SUCH AS COMMUNIST PARTY GENERAL SECRETARY JIANG ZEMIN AND VICE PREMIER ZOU JIAHUA CALLED FOR SUSTAINED RAPID AND HEALTHY ECONOMIC GROWTH NOW MR DENG HAS WEIGHED IN ON SATURDAY WEN WEI PO A HONG KONG DAILY BACKED BY BEIJING INDIRECTLY QUOTED THE 89YEAROLD LEADER WHOSE HIGHPROFILE TOUR OF SOUTHERN CHINA IN JANUARY 1992 USHERED IN LIGHTNINGFAST ECONOMIC EXPANSION AS SAYING THAT SLOW GROWTH ISN'T SOCIALISM MR DENG WAS ALSO QUOTED AS SAYING THAT WHILE HE SUPPORTS THE CURRENT MACROECONOMIC ADJUSTMENTS IT'S BETTER TO GO A LITTLE FASTER WHERE FAST SPEED IS POSSIBLE NOT TO GROW IS UNACCEPTABLE TO GROW SLOWLY IS UNACCEPTABLE MEANWHILE THE PEOPLE'S BANK OF CHINA APPEARS TO BE EASING CREDIT IN A REPORT LAST WEEK WEN WEI PO SAID BANK OFFICIALS PREDICT THAT THE CENTRAL BANK WILL GRANT ABOUT 200 BILLION YUAN 3465 BILLION IN LOANS TO BANKS IN THE FOURTHQUARTER COMPARED WITH LOANS OF 1008 BILLION YUAN IN THE THIRDQUARTER THE OFFICIALS ALSO PROJECTED TOTAL SUCH LENDING FOR THE YEAR AT 400 BILLION YUAN UP FROM 354 BILLION YUAN LAST YEAR A CENTRAL BANK OFFICIAL SAID IN AN INTERVIEW THAT THE THIRDQUARTER LOANS WHICH CAME PARTLY FROM THE BANK'S RESERVES WERE EARMARKED FOR INFRASTRUCTURE PROJECTS AND CASHSTRAPPED STATE ENTERPRISES MR ZHU'S TIGHTCREDIT POLICY HAS HIT CHINA'S STATE SECTOR ESPECIALLY HARD SOME FACTORIES ESPECIALLY IN THE HEAVYINDUSTRY SECTOR HAVE SLASHED OR STOPPED PRODUCTION AS WORKING CAPITAL HAS EVAPORATED AND STOCKPILES HAVE GROWN WE'RE JUST TRYING TO AVOID THE SITUATION IN 1989 WHEN A LOT OF PROJECTS CAME TO A STOP BECAUSE THEY DIDN'T HAVE THE MONEY THE CENTRAL BANK OFFICIAL SAID BUT THAT DOESN'T MEAN THE AUSTERITY PROGRAM IS OVER THE DANGER IS THAT WITH THE GOVERNMENT INJECTING SO MUCH MONEY INTO THE SYSTEM IT COULD SEND A SIGNAL TO THE BANKS TO LEND AS MUCH AS THEY LIKE SAYS HONG KONG BAPTIST'S MR TSANG IT COULD SPARK ANOTHER ROUND OF LOANS AND INVESTMENTS TO MAKE MATTERS WORSE AUSTERITY HASN'T YET SOLVED MANY OF THE PROBLEMS THAT EMERGED EARLY THIS YEAR THOUGH BANK DEPOSITS HAVE RISEN AND THE YUAN HAS LARGELY STABILIZED INFLATION CONTINUED AT 207 IN MAJOR CITIES IN SEPTEMBER GROWTH IN INDUSTRIAL OUTPUT AND MONEY SUPPLY THOUGH LOWER THAN IN JUNE ALSO CONTINUED TO GROW AT AROUND 20 IN SEPTEMBER 9311010167 931101 INTERNATIONAL RECORDING INDUSTRY RECEIVES A SETBACK IN FIGHTING PIRATES KNOCKOFF CDS REEMERGE IN ASIAN REGIONS AS OUTPUT OF CHINESE FAKES GROWS BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG A SURGE IN PRODUCTION OF KNOCKOFF COMPACT DISKS IN CHINA HAS SET BACK THE RECORDING INDUSTRY IN ITS CAMPAIGN TO WIPE OUT PIRATED MUSICAL RECORDINGS AN INDUSTRY ASSOCIATION SAYS IN HONG KONG WHERE ILLEGALLY COPIED MUSICAL TAPES AND RECORDS HAD ALL BUT DISAPPEARED IN THE PAST DECADE COUNTERFEIT COMPACT DISKS SUDDENLY ACCOUNT FOR ABOUT ONEFIFTH OF THE 120 MILLION IN LOCAL MUSIC SALES ACCORDING TO THE INTERNATIONAL FEDERATION OF THE PHONOGRAPHIC INDUSTRY COUNTERFEIT COMPACT DISKS ARE SURFACING ELSEWHERE IN THE REGION TOO AND ARE MAKING THEIR WAY TO EUROPE PIRATED RECORDINGS LAST YEAR ACCOUNTED FOR ABOUT 21 BILLION OF SALES COMPARED WITH 288 BILLION IN LEGITIMATE RECORDED MUSIC SALES WORLDWIDE MOST OF THE PIRATED RECORDINGS ARE CASSETTE TAPES BUT COMPACT DISKS ARE CATCHING UP FAST PARTICULARLY IN ASIA WHERE HIGHQUALITY CHINESEPRODUCED COUNTERFEITS ARE FLOODING MARKETS THE SOUTH EAST ASIAN MARKETS WHICH WE FOUGHT HARD TO PROTECT ARE COMING APART SAID LISA GORDON THE FEDERATION'S DIRECTOR OF COMMUNICATIONS CHINA NOW HAS AS MANY AS 26 FACTORIES CAPABLE OF PRODUCING A TOTAL OF 62 MILLION COMPACT DISKS THE FEDERATION BELIEVES IN THE REST OF THE WORLD THERE ARE FEWER THAN 175 COMPACTDISK FACTORIES YET CHINA'S DOMESTIC MARKET FOR COMPACT DISKS WHICH ARE RELATIVELY EXPENSIVE AT ABOUT 14 APIECE IN A COUNTRY WHERE PER CAPITA INCOME IS LESS THAN 350 IS ONLY THREE MILLION DISKS THAT LEAVES THE INDUSTRY WITH EXCESS CAPACITY OF ABOUT 59 MILLION DISKS AND MS GORDON SAID THE FEDERATION BELIEVES MUCH OF THAT NOW IS BEING USED TO MAKE COUNTERFEIT DISKS THE FEDERATION WHICH GROUPS MOST OF THE WORLD'S MAJOR RECORDING COMPANIES MET WITH OFFICIALS IN HONG KONG LATE LAST WEEK TO SEEK CRIMINAL PENALTIES FOR RECORD PIRATING THE GROUP IS SENDING A DELEGATION OF TOP INDUSTRY EXECUTIVES TO BEIJING THIS WEEK TO MEET WITH SENIOR LEADERS OF CHINA'S MINISTRY OF RADIO FILM AND TELEVISION AND THE MINISTRY OF CULTURE ALTHOUGH CHINA HAS SIGNED INTERNATIONAL CONVENTIONS VOWING TO PROTECT COPYRIGHTS THE HIGH QUALITY OF DIGITALLY RECORDED COMPACT DISKS EVEN COUNTERFEITS AND JURISDICTIONAL OVERLAP AMONG CHINESE REGULATORS MAKES THE INDUSTRY HARD TO CONTROL EVEN THOUGH THE CHINESE AT THE MOMENT DON'T BUY A LOT OF COMPACT DISKS THE POTENTIAL LOSS FROM FAKES IS GREAT THERE TOO MS GORDON BELIEVES AT THE MOMENT THE INDUSTRY SELLS AN AVERAGE OF ONLY ONE RECORDING FOR EVERY 10 PEOPLE BUT IF PURCHASING HABITS REACH MALAYSIA'S SALES OF SEVEN RECORDINGS FOR EVERY 10 PEOPLE SALES TO CHINA'S 12 BILLION PEOPLE WOULD AMOUNT TO 35 BILLION A YEAR 9311010166 931101 FINANCING BUSINESS ICF KAISER INTERNATIONAL INC ICF KAISER INTERNATIONAL INC FAIRFAX VA SAID IT FILED A REGISTRATION STATEMENT FOR A PROPOSED PUBLIC OFFERING OF 110 MILLION OF SENIOR SUBORDINATED NOTES PROCEEDS WILL BE USED TO RETIRE 135 NOTES AND REPURCHASE ASSOCIATED WARRANTS AS WELL AS BUY BACK TWO ISSUES OF PREFERRED STOCK AND OTHER DEBT DILLON READ & CO IS LEAD MANAGER ICF KASER IS AN ENGINEERING CONSTRUCTION AND CONSULTING SERVICES COMPANY 9311010165 931101 NIPPON OIL REPORTS 6 PRETAX PROFIT DROP FOR LATEST SIX MONTHS TOKYO NIPPON OIL CO SAID PRETAX PROFIT FOR THE SIX MONTHS ENDED SEPT 30 FELL 6 FROM A YEAR EARLIER TO 1939 BILLION YEN 1793 MILLION SALES SLIPPED 8 TO 87498 BILLION YEN THE COMPANY SAID THE SALES DECLINE REFLECTING A COOL AND RAINY SUMMER EXACERBATED ALREADY SLOWING DOMESTIC SALES OF PETROLEUM PRODUCTS AMID JAPAN'S LINGERING RECESSION NIPPON OIL PREDICTED THAT UNCONSOLIDATED PRETAX PROFIT FOR THE FISCAL YEAR ENDING MARCH 31 1994 WILL TOTAL 42 BILLION YEN UP FROM ITS PREVIOUS FORECAST OF 40 BILLION YEN THE COMPANY ALSO INCREASED ITS NET INCOME FORECAST TO 22 BILLION YEN FROM 20 BILLION YEN BUT LOWERED ITS SALES FORECAST TO 1860 TRILLION YEN FROM 1900 TRILLION YEN DESPITE THE UPWARD PROFIT REVISIONS THE RESULTS WOULD STILL BE LOWER THAN EARNINGS POSTED FOR THE PREVIOUS FISCAL YEAR WHEN THE COMPANY HAD A PRETAX PROFIT OF 4338 BILLION YEN ON SALES OF 1996 TRILLION YEN NIPPON OIL ATTRIBUTED THE FIRSTHALF DECLINE IN PRETAX PROFIT TO LOWER PETROLEUM PRODUCT SALES VOLUME WHICH WAS PULLED DOWN BY A COMBINATION OF LOWER CRUDE OIL PRICES IN THE WORLD MARKET AND THE APPRECIATION OF THE YEN AGAINST THE DOLLAR 9311010164 931101 AJINOMOTO CO POSTS 99 DECLINE IN PROFIT FOR FISCAL FIRST HALF TOKYO AJINOMOTO CO A LEADING JAPANESE MAKER OF MONOSODIUM GLUTAMATE FOODS AND PHARMACEUTICALS POSTED A 99 DROP IN PARENT PRETAX PROFIT FOR THE FISCAL FIRST HALF ENDED SEPT 30 THE COMPANY CITED INCREASED COMPETITION AND NEGATIVE IMPACT FROM BOTH THE SHARP APPRECIATION BY THE YEN AND UNSEASONABLE SUMMER WEATHER FOR THE WEAKER RESULTS UNCONSOLIDATED PRETAX PROFIT NOT INCLUDING SUBSIDIARIES FELL TO 1266 BILLION YEN 117 MILLION FROM 1405 BILLION YEN IN THE PREVIOUS PERIOD SALES EDGED DOWN 18 TO 298 BILLION YEN FROM 30338 BILLION YEN IN VIEW OF THE WEAKER FIRST HALF AJINOMOTO LOWERED ITS FORECAST FOR FULLYEAR UNCONSOLIDATED EARNINGS TO SHOW MODEST DECLINES IN PROFIT RATHER THAN BASICALLY FLAT RESULTS AS IT WAS EXPECTING IN MAY THE COMPANY CURRENTLY EXPECTS UNCONSOLIDATED PRETAX PROFIT TO TOTAL 253 BILLION YEN COMPARED WITH A PREVIOUS FORECAST OF 275 BILLION YEN LAST YEAR THE COMPANY POSTED PRETAX PROFIT OF 2737 BILLION YEN IN THE LATEST HALF AJINOMOTO SAID IT EMPHASIZED SALES OF INNOVATIVE PRODUCTS THAT WOULD WEATHER JAPAN'S RECESSION AND ALSO TRIED TO CUT COSTS TO BRACE FOR GROWING COMPETITION WITH IMPORTS AMID THE STRONG YEN AJINOMOTO SAID ITS INSTANT FISHSTOCK SEASONING AND COOK DO PRODUCTS HAVE FARED WELL IN THE FACE OF JAPAN'S ECONOMIC RECESSION AS EATING OUT GROWS LESS COMMON AND NATURAL FOODS GAIN POPULARITY THE DIVISION'S SALES ACCOUNTING FOR 18 OF OVERALL SALES WERE UP 47 ON YEAR ALSO COOKINGOIL SALES WERE STRONG 9311010163 931101 SCECORP UNIT SEEKS 190 MILLION RATE RISE IN ELECTRICCAR EFFORT ROSEMEAD CALIF THE SOUTHERN CALIFORNIA EDISON CO UNIT OF SCECORP REQUESTED A RATE INCREASE TO PAY FOR A PROPOSED 190 MILLION SIXYEAR SERIES OF PROGRAMS TO PROVIDE SERVICES TO THE ELECTRICCAR INDUSTRY IN A FILING WITH THE CALIFORNIA PUBLIC UTILITIES COMMISSION THE UTILITY SAID IT WAS PREPARED TO INSTALL RECHARGING EQUIPMENT IN THE HOMES OF CAR OWNERS WITHIN 72 HOURS OF THE PURCHASE OF A VEHICLE AND TO BUILD RECHARGING STATIONS IN PARKING LOTS MALLS AND OTHER SITES IT SAID IT WOULD PROVIDE INCENTIVES WORTH AS MUCH AS 1500 FOR PROSPECTIVE BUYERS AND OFFER LOWER RATES FOR THOSE WHO RECHARGED THEIR CARS OVERNIGHT A TIME WHEN DEMAND FOR POWER ELSEWHERE IS RELATIVELY LOW IT ALSO SAID IT WOULD INCREASE THE SIZE OF ITS OWN ELECTRIC FLEET TO 800 FROM 21 STATE LAW REQUIRES THAT IN 1998 2 OF ALL VEHICLES PRODUCED FOR SALE IN CALIFORNIA MUST BE ZEROEMISSION AND OTHER STATES HAVE FOLLOWED SUIT UTILITIES HAVE BEEN ANXIOUS TO FACILITATE COMPLIANCE WITH THIS LAW CAR MAKERS HAVE BEEN AMBIVALENT PROCEEDING IN FITS AND STARTS ELECTRIC CARS CURRENTLY NEED TO BE RECHARGED EVERY 100 MILES OR SO THE CARS ALSO ARE ABOUT THREE TIMES MORE EXPENSIVE THAN GASOLINEPOWERED EQUIVALENTS WHICH IS ONE REASON WHY SCE SAYS INCENTIVES NEED TO BE OFFERED AT LEAST AT FIRST THE PROGRAM CALLS FOR A 13CENT INCREASE IN AN AVERAGE CUSTOMER'S MONTHLY ELECTRIC BILL FOR SIX YEARS BEGINNING IN 1995 THE COMMISSION IS EXPECTED TO RULE BY THE FALL OF 1994 THE COMPANY SAID 9311010162 931101 CR BARD INC MAKES ACQUISITION MURRAY HILL NJ CR BARD INC SAID IT ACQUIRED BAINBRIDGE SCIENCES INC REDMOND WASH TERMS WEREN'T DISCLOSED IN A NEWS RELEASE THE MAKER OF HOSPITAL AND SURGICAL SPECIALTIES SAID THE DILUTIVE EFFECT OF THE ACQUISITION WOULDN'T BE MATERIAL TO BARD'S 1993 PERSHARE EARNINGS BAINBRIDGE IS A DEVELOPMENTSTAGE INVITRO DIAGNOSTICS CONCERN THAT SPECIALIZES IN CANCER DETECTION THROUGH TUMOR MARKERS 9311010161 931101 CITICORP UPDATES ARGENTINA DEBT NEW YORK CITICORP'S CITIBANK SAID THAT THE GOVERNMENT OF ARGENTINA HAS DISBURSED ABOUT 85 OF THE INTEREST ARREARS TO FOREIGN CREDITORS TOTALING 66 BILLION OF FLOATINGRATE BONDS AND 636 MILLION IN CASH PAYMENTS IN A PRESS RELEASE CITIBANK SAID THE PACKAGE IS SUBSTANTIALLY COMPLETED THE BANK SAID IT EXPECTS TO RELEASE ADDITIONAL AMOUNTS DEC 16 9311010160 931101 INTERNATIONAL WASHINGTON INSIGHT UN RISKS TARNISHING EVIDENT SUCCESS OF PEACEKEEPING OPERATION IN CAMBODIA BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE UNITED NATIONS WHICH BADLY NEEDS TO BURNISH ITS PEACEKEEPING CREDENTIALS CAN CLAIM A BIG SUCCESS IN ITS NOWENDING PEACEKEEPING OPERATION IN CAMBODIA YET IT MAY PULL THE RUG FROM UNDER ITSELF AS IT EXITS HAVING SPENT 17 BILLION AND DEPLOYED 22000 MILITARY AND CIVILIAN PERSONNEL TO PICK UP THE SHATTERED COUNTRY AND CONDUCT SUCCESSFUL ELECTIONS THE UN NOW IS THREATENING TO TAKE AWAY DESPERATELY NEEDED MINEREMOVAL EQUIPMENT BECAUSE OF A DISPUTE OVER 1 MILLION THE ISSUE SOUNDS INSIGNIFICANT AND THE SUM OF MONEY INVOLVED IS PUNY BUT IT COULD HAVE A MAJOR IMPACT ON CAMBODIA'S ABILITY TO PUT ITSELF BACK TOGETHER MILLIONS OF BURIED LAND MINES MAKE IT EXTREMELY DANGEROUS TO MOVE ABOUT THE COUNTRY LET ALONE REBUILD ROADS SCHOOLS AND HOSPITALS DISTRIBUTE FOOD AND ASSIST REFUGEES WHO WANT TO GO HOME US OFFICIALS ESTIMATE THAT AS MANY AS 300 PEOPLE A MONTH STILL FALL VICTIM TO MINES ON TOP OF THE THOUSANDS ALREADY KILLED OR MAIMED YET WITH THE PEACEKEEPING OPERATION ENDING LATER THIS MONTH THE UN HAS SAID IT PLANS TO REMOVE ITS EQUIPMENT BY DEC 1 A UN OFFICIAL SAYS THE CLINTON ADMINISTRATION HAS OFFERED TO PAY 2 MILLION SO THE EQUIPMENT CAN REMAIN IN CAMBODIA UN BUREAUCRATS SAY THE BOOK VALUE OF THE EQUIPMENT IS CLOSER TO 3 MILLION THIS IS AN ACCOUNTANTS' BATTLE IT'S UNDIGNIFIED SAYS REP GARY ACKERMAN A NEW YORK DEMOCRAT WHO'S CHAIRMAN OF THE HOUSE FOREIGN AFFAIRS SUBCOMMITTEE ON ASIA AND THE PACIFIC WE'VE SENT THOUSANDS OF PEACEKEEPERS THERE FROM DOZENS OF NATIONS AT A HUGE COST AND NOW WE'RE BASICALLY BICKERING OVER PENNIES MORE IS AT STAKE THAN PENNIES THERE'S NO DISPUTE THAT CAMBODIA HAS BEEN A MAJOR ACHIEVEMENT FOR THE UN FOR A TIME THE UN VIRTUALLY TOOK OVER CAMBODIA'S GOVERNMENT PAVING THE WAY FOR A FREE AND FAIR ELECTION LAST MAY AND THE ESTABLISHMENT OF A CONSTITUTIONAL MONARCHY THE ELECTION ENDED NEARLY A QUARTER CENTURY OF WAR AND BRUTALITY ABOUT 370000 REFUGEES HAVE COME HOME THOUSANDS OF POLITICAL PRISONERS HAVE BEEN FREED AND THE ELEMENTS OF A FREE SOCIETY HAVE BEGUN TO FUNCTION ACCORDING TO US OFFICIALS SUCH A SUCCESS IS ESPECIALLY IMPORTANT TO THE UN NOW DURING ITS TROUBLED AND CONTROVERSIAL MISSION IN SOMALIA THE UN DESPERATELY NEEDS TO SHOW AN INTERNATIONAL COMMUNITY WARY OF FOREIGN ENTANGLEMENTS THAT PEACEKEEPING OPERATIONS CAN BE BROUGHT TO A END THAT ACHIEVEMENT IS EVEN SWEETER BECAUSE IT COMES WITHOUT THE US PLAYING A DOMINANT ROLE BUT THE BRIEF HISTORY OF THE POSTCOLD WAR PERIOD ALREADY HAS SHOWN THAT ELECTIONS BY THEMSELVES DON'T MAKE DEMOCRATIC SUCCESS STORIES IN ANGOLA AN ELECTION REKINDLED CIVIL WAR PARTLY BECAUSE SUFFICIENT ATTENTION WASN'T PAID TO SUCH PROBLEMS AS THE DEMOBILIZATION OF SOLDIERS ECONOMIC DEVELOPMENT AND THE BUILDING OF DEMOCRATIC INSTITUTIONS THE INVOLVEMENT OF THE INTERNATIONAL COMMUNITY WILL LIKELY DETERMINE WHETHER CAMBODIANS ARE ABLE TO BUILD ON THE RESTORATION OF DEMOCRATIC GOVERNMENT OR RETURN TO THE VIOLENCE OF THE PAST AT A CONFERENCE LAST JUNE IN TOKYO THE INTERNATIONAL COMMUNITY PLEDGED ABOUT 880 MILLION INCLUDING 136 MILLION FROM THE US TO HELP REBUILD CAMBODIA STILL SOME EXPERTS WORRY ABOUT THE FOLLOWUP THROUGHOUT THE DEVELOPED WORLD THERE'S A GROWING EXHAUSTION WITH ETHNIC FLAREUPS AND CIVIL UNREST AND THE END OF THE EASTWEST STRUGGLE HAS REMOVED A SENSE OF URGENCY TO DEAL WITH THEM THERE'S A TENDENCY IN THE INTERNATIONAL COMMUNITY TO SAY WE'VE GOT A PEACE AGREEMENT OR THERE'S BEEN AN ELECTION SO WE DON'T HAVE TO WORRY ABOUT THIS PLACE ANYMORE SAYS JOEL CHARNY OVERSEAS DIRECTOR OF OXFAM AMERICA AN INTERNATIONAL AGENCY THAT FUNDS DEVELOPMENT ASSISTANCE AND DISASTER RELIEF MEANWHILE THE MURDEROUS KHMER ROUGE GUERRILLA FORCE WHICH ONCE RULED IN PHNOM PENH AND REFUSED TO PARTICIPATE IN THE ELECTION REMAINS A MAJOR CONCERN IN THE LONG RUN THEY WILL BE A NAGGING PROBLEM SAYS FREDERICK BROWN AN EXPERT ON ASIA AT JOHNS HOPKINS UNIVERSITY'S SCHOOL OF ADVANCED INTERNATIONAL STUDIES THE STRENGTH OF THE KHMER ROUGE LIES WITH THE WEAKNESS OF THE REST OF CAMBODIA UNTIL THOSE WEAKNESSES ARE REMEDIED THE KHMER ROUGE WILL HAVE THE ABILITY TO COME BACK HE SAYS COMPARED WITH THE THREAT OF A RESURGENT KHMER ROUGE THE DISPUTE OVER MINEREMOVAL EQUIPMENT IS MINOR AND US OFFICIALS HOPE IT WILL BE RESOLVED BEFORE THE UN DEADLINE CONCLUDES REP ACKERMAN CAMBODIA HAS MUCH TO OFFER PESSIMISTS AND OPTIMISTS ALIKE 9311010159 931101 SYNERCOM ACQUISITION HOUSTON SYNERCOM TECHNOLOGY INC SAID IT BOUGHT ASSETS AND ASSUMED CERTAIN LIABILITIES OF EG&GWAKEFIELD ENGINEERING INC A SUBSIDIARY OF EG&G INC TERMS WEREN'T DISCLOSED IN A NEWS RELEASE SYNERCOM SAID WAKEFIELD ENGINEERING DESIGNS MAKES AND SELLS THERMALMANAGEMENT PRODUCTS AND METAL FABRICATIONS 9311010158 931101 WHO'S NEWS DELCHAMPS INC DELCHAMPS INC MOBILE ALA THE COMPANY SAID JESSE A LEWIS RESIGNED AS CHIEF OPERATING OFFICER EXECUTIVE VICE PRESIDENT AND DIRECTOR OF THE SUPERMARKET CHAIN MR LEWIS SAID HE RESIGNED BECAUSE OF MAJOR DIFFERENCES IN MANAGEMENT PHILOSOPHIES WITH RANDY DELCHAMPS CHIEF EXECUTIVE OFFICER COMPANY OFFICIALS WOULDN'T COMMENT ON HIS DEPARTURE 9311010157 931101 FINANCING BUSINESS VALHI INC VALHI INC SAID ITS VALCOR INC UNIT WILL SELL 100 MILLION OF SENIOR NOTES DUE 2003 AT PAR TO YIELD 9 5/8 THE COMPANIES SAID 75 MILLION OF THE PROCEEDS WILL BE DISTRIBUTED TO VALHI WITH THE BALANCE RETAINED BY VALCOR FOR ITS GENERAL CORPORATE PURPOSES THE OFFERING IS SCHEDULED TO CLOSE NEXT MONDAY VALHI A REFINEDSUGAR COMPANY BASED IN DALLAS WILL USE A PORTION OF ITS SHARE OF THE DISTRIBUTION TO PREPAY THE REMAINING 50 MILLION OUTSTANDING PRINCIPAL BALANCE OF ITS 12 1/2 SENIOR SUBORDINATED NOTES DUE 1998 UNDERWRITERS FOR THE OFFERING ARE MORGAN STANLEY & CO AND MERRILL LYNCH & CO 9311010156 931101 RESEARCHERS CREATE MOLECULE TO BLOCK AIDS INFECTION MARSEILLE FRANCE AP RESEARCHERS IN FRANCE HAVE CREATED A CLASS OF MOLECULES THEY SAID ARE CAPABLE OF BLOCKING AIDS INFECTION IN TESTTUBE RESEARCH THE DISCOVERY WHICH MUST BE VERIFIED IN MICE AND MONKEYS IS AN IMPORTANT STEP IN BASIC RESEARCH AGAINST AIDS SAID JURPHAAS VAN RIETSCHOTEN RESEARCH DIRECTOR HERE FOR THE NATIONAL CENTER FOR SCIENTIFIC RESEARCH WHICH OVERSAW THE WORK IT IS A HOPE NOT A GUARANTEE HE TOLD A NEWS CONFERENCE NOTING IT IS UNKNOWN WHETHER THE SUBSTANCE WOULD PROVE TOXIC IN ANIMALS OR HUMANS THE DISCOVERY WAS MADE BY A NATIONAL CENTER TEAM AT NORTH MARSEILLE HOSPITAL HEADED BY HERVE ROCHAT THE ANNOUNCEMENT COMES FOUR DAYS AFTER THE ANNOUNCEMENT OF A RELATED DISCOVERY BY THE PASTEUR INSTITUTE IN PARIS THAT TEAM HEADED BY ARA HOVANESSIAN SAID IT HAD IDENTIFIED A CORECEPTOR NAMED CD26 A MOLECULE USED BY ALL STRAINS OF THE AIDS VIRUS TO GAIN ENTRY TO CELLS AND INFECT THEM THE PASTEUR INSTITUTE SHOWED HOW CD26 WORKS IN CONJUNCTION WITH THE CD4 CORECEPTOR LONG KNOWN TO ACT AS A CONTACT POINT FOR VIRAL PARTICLES TO ALLOW THE AIDS VIRUS TO PENETRATE CELLS THE MARSEILLE TEAM SAID IT HAD CREATED A MOLECULE NAMED CDR3 THAT BLOCKS THE ENTRY DOORS ON LYMPHOCYTE MACROPHAGE AND INTESTINAL CELLS IN TESTTUBE TRIALS THE THREE CELL TYPES ARE TARGETED BY THE AIDS VIRUS HIV THANKS TO THIS MOLECULE WE MANAGED TO STOP IN THE LABORATORY NOT ONLY THE INFECTION OF THE TARGET CELLS BY THE HIV1 VIRUS OF EUROPEAN STOCK BUT ALSO AN AFRICAN VIRUS HIV2 SAID JACQUES FANTINI A VIROLOGIST AND MEMBER OF THE TEAM HE COMPARED THE DISCOVERY TO A PASS KEY THAT ALLOWS ONE TO BLOCK ALL THE LOCKS TO STOP THE VIRUS FROM ENTERING THE HEALTHY CELLS LUC MONTAGNIER DIRECTOR OF THE PASTEUR INSTITUTE AND CREDITED WITH DISCOVERING THE AIDS VIRUS IN 1983 CALLED THE MARSEILLE WORK INTERESTING HE SAID THE MARSEILLE AND PASTEUR INSTITUTE WORK COMPLEMENT EACH OTHER AND EXCHANGE COULD PROVE FRUITFUL EXPLAINING THE MARSEILLE PROCEDURE JEANMARC SABATIER A BIOCHEMIST SAID RESEARCHERS RESTRUCTURED TWO KNOWN SYNTHETIC MOLECULES SPC3 AND SPC5 BOTH POLYMERS TO CREATE MULTIBRANCHED POLYMERS ABLE TO BLOCK ALL ENTRY DOORS TO THE VIRUS JEANPAUL LEVY HEAD OF THE NATIONAL AGENCY FOR AIDS RESEARCH SAID THE RESEARCHERS WERE ABLE TO SHOW A VERY SIGNIFICANT INHIBITION IN VITRO OF INFECTION BY THE VIRUS 9311010155 931101 CNA FINANCIAL SAID TO CONTRIBUTE TO MUNI SETTLEMENT BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON IN A HIGHLY UNUSUAL DEVELOPMENT A LARGE INSTITUTIONAL INVESTOR CONTRIBUTED TO AN ACCORD ENDING A MUNICIPALBOND TAX DISPUTE BETWEEN THE INTERNAL REVENUE SERVICE AND THE CITY OF CHESTER PA THE IRS AND CHESTER RECENTLY SETTLED A DISPUTE OVER AN ALLEGEDLY BOGUS 335 MILLION MUNICIPALBOND ISSUE THE CITY SOLD IN 1986 AND CNA FINANCIAL CORP A MAJOR INSURER WHOSE UNITS ONCE HELD MORE THAN 125 MILLION OF THE BONDS CONTRIBUTED TO THE SETTLEMENT ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER A SPOKESWOMAN FOR CNA ONE OF THE NATION'S LARGER MULTILINE INSURANCE COMPANIES DECLINED TO COMMENT THE IRS CONFIRMED THAT IT SETTLED WITH CHESTER BUT REFUSED TO DISCUSS DETAILS CURRENT AND FORMER TAX OFFICIALS AND BONDMARKET PARTICIPANTS WERE UNABLE TO CITE ANY PRECEDENT FOR AN INVESTOR CONTRIBUTING TO AN IRS MUNI SETTLEMENT I NEVER SAW OR HEARD OF A CASE WHERE AN INVESTOR KICKED IN SAID JOSEPH KROLIKOWSKI A FORMER TREASURY TAX LAWYER THE IRS CONCLUDED IN 1991 THAT THE CHESTER BONDS VIOLATED REQUIREMENTS FOR TAXEXEMPT STATUS AND THREATENED TO TAX INVESTORS UNLESS IT RECOVERED SOME FUNDS THE PACT PRESERVES THE BONDS' TAXEXEMPTION PROTECTING INVESTORS FROM BEING TAXED ON THEIR INTEREST INCOME UNDER THE ACCORD PARTIES AREN'T SUPPOSED TO DIVULGE THE AMOUNT PAID TO THE IRS THE FIGURE IS BELIEVED TO BE A FRACTION OF THE 20 MILLION THE IRS ONCE SOUGHT THE CHESTER BONDS WERE UNDERWRITTEN BY MATTHEWS & WRIGHT GROUP INC WHICH CHANGED ITS NAME TO HELMSTAR GROUP INC AFTER SETTLING FRAUD CHARGES WITH THE SECURITIES AND EXCHANGE COMMISSION IN 1989 INVOLVING OVER 1 BILLION OF MUNIS INCLUDING THE CHESTER BONDS HELMSTAR DIDN'T CONTRIBUTE TO THE IRS SETTLEMENT A LAWYER FOR THE FIRM SAID CONTRIBUTORS IN ADDITION TO CNA WERE IDENTIFIED BY PEOPLE FAMILIAR WITH THE MATTER AS PNC BANK CORP THE TRUSTEE BANK FOR THE CHESTER BONDS AND BERKMAN RUSLANDER POHL LIEBER & ENGEL THE LAW FIRM THAT CERTIFIED THE BONDS AS TAXEXEMPT A PNC SPOKESMAN DECLINED TO COMMENT AS DID AN ATTORNEY FOR THE LAW FIRM WHICH HAS GONE OUT OF BUSINESS TRADITIONALLY PAYMENTS TO THE IRS TO SETTLE MUNI DISPUTES COME FROM UNDERWRITERS LAWYERS AND OTHER PROFESSIONALS INVOLVED IN BAD BOND AGREEMENTS WITH CNA REFUSING TO COMMENT ON THE MATTER OTHERS SPECULATE THE INSURER DETERMINED THAT HELPING TO SETTLE THE DISPUTE WAS CHEAPER THAN HAVING TO PAY TAXES ON BONDS IT PURCHASED AS TAXEXEMPT SECURITIES 9311010154 931101 TECHNOLOGY DIAGNOSTEK BUYS PERFORM COST ALBUQUERQUE NM DIAGNOSTEK INC SAID IT ACQUIRED PERFORM COST MANAGEMENT SERVICES INC A PRESCRIPTIONCLAIMS PROCESSING COMPANY FOR 27 MILLION DIAGNOSTEK WHICH MANAGES PRESCRIPTION DRUG BENEFITS FOR LARGE CORPORATIONS SAID ROBERT FIELD PERFORM'S CHIEF EXECUTIVE OFFICER WILL JOIN DIAGNOSTEK AS EXECUTIVE VICE PRESIDENT PERFORM A CLOSELY HELD COMPANY BASED IN SCOTTSDALE ARIZ MANAGES PRESCRIPTION DRUG PROGRAMS FOR BLUE CROSS BLUE SHIELD OF ARIZONA AMONG OTHER CLIENTS 9311010153 931101 MITSUBISHI HEAVY SAYS ITS PRETAX PROFIT FELL IN FISCAL 1ST HALF TOKYO MITSUBISHI HEAVY INDUSTRIES LTD SAID UNCONSOLIDATED PRETAX PROFIT FOR ITS FISCAL FIRST HALF ENDED SEPT 30 FELL 17 FROM YEAREARLIER FIGURES DUE TO LOWER SALES PRETAX PROFIT WAS 61 BILLION YEN 5635 MILLION DOWN FROM YEAREARLIER 6204 BILLION YEN ON A 5 DECLINE IN SALES TO 1056 TRILLION YEN 976 BILLION FROM A YEAREARLIER 1112 TRILLION YEN PERSHARE EARNINGS ROSE 11 TO 1259 YEN 12 CENTS MITSUBISHI SAID ITS FORECAST FOR THE FULL FISCAL YEAR WHICH ENDS MARCH 31 1994 HAS BEEN LOWERED FROM AN EARLIER MAY FORECAST DUE TO THE COMPANY'S EXPECTATION THAT SALES OF INDUSTRIAL MACHINERY AND OTHER PRODUCTS WILL REMAIN DEPRESSED AMID THE CONTINUING ECONOMIC DOWNTURN A MITSUBISHI OFFICIAL ALSO NOTED THAT THE COOL SUMMER HAD A NEGATIVE EFFECT ON SALES THE COMPANY NOW EXPECTS PRETAX PROFIT FOR THE YEAR OF 120 BILLION YEN COMPARED WITH A PREVIOUS FORECAST OF 140 BILLION YEN SALES NOW ARE EXPECTED TO TOTAL 242 TRILLION YEN DOWN FROM A PREVIOUS ESTIMATE OF 25 TRILLION YEN LAST YEAR THE COMPANY POSTED PRETAX PROFIT OF 14074 BILLION YEN ON SALES OF 2493 TRILLION YEN MITSUBISHI SAID SALES IN ALL ITS DIVISIONS FELL IN ITS FIRST HALF WITH THE EXCEPTION OF ITS SHIPBUILDING AND STEELSTRUCTURES SECTOR WHICH EXPERIENCED A 50 RISE THAT SECTOR MADE UP 17 OF THE COMPANY'S REVENUE IN THE FIRST HALF UP FROM 11 A YEAR EARLIER A COMPANY OFFICIAL EXPLAINED THAT THE IMPROVEMENT IN SHIPBUILDING SALES WAS DUE TO A LARGE NUMBER OF SHIP DELIVERIES IN THE RECENTLY ENDED HALF INCLUDING DELIVERY OF LARGE CRUDE CARRIERS AND LIQUEFIEDNATURALGAS CARRIERS 9311010152 931101 FIRST IBERIAN FUND RESTRICTION NEW YORK FIRST IBERIAN FUND INC A 55 MILLION CLOSEDEND FUND SAID DIRECTORS REMOVED A RESTRICTION THAT HAD LIMITED TO 20 THE PERCENTAGE OF THE FUND'S ASSETS THAT CAN BE INVESTED IN PORTUGAL 9311010151 931101 CONTINENTAL AIRLINES FINED FOR OFFERING TOO FEW LOWFARE SEATS DURING A SALE BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TRANSPORTATION DEPARTMENT FINED CONTINENTAL AIRLINES FOR FAILING TO MAKE A REASONABLE NUMBER OF SEATS AVAILABLE AT PROMOTIONAL FARES DURING A SALE EARLIER THIS YEAR THE MOVE IN WHICH CONTINENTAL AGREED TO SIGN A CEASEANDDESIST ORDER AND PAY 20000 IS THE FIRST TIME THAT THE AGENCY HAS BROUGHT A CASE AGAINST AN AIRLINE FOR OFFERING TOO FEW LOWFARE SEATS FOLLOWING AN ADVERTISING PROMOTION THE ACTION REFLECTS THE CLINTON ADMINISTRATION'S MORE ACTIVIST APPROACH TO CONSUMER PROTECTION IN THE AIRLINE INDUSTRY TRANSPORTATION DEPARTMENT OFFICIALS HAVE STEPPED UP A CONSUMER PROGRAM BEGUN UNDER PRESIDENT BUSH TO MONITOR AIRLINE SALES ABOUT SEVEN CASES HAVE BEEN REFERRED TO THE AGENCY'S ENFORCEMENT STAFF WHICH FOUND ENOUGH EVIDENCE OF PROBLEMS IN THREE CASES THESE MOVES ARE CERTAIN TO CHEER CONSUMER ADVOCATES AND TRAVEL AGENTS WHO HAVE LONG COMPLAINED THAT AIRLINES TEASE CONSUMERS WITH ADVERTISEMENTS OF LOW FARES BUT THEN ONLY OFFER A FEW SEATS AT THE REDUCED RATES AS A RESULT FRUSTRATED CONSUMERS OFTEN BUY SEATS AT FARES THAT ARE HIGHER THAN THE ADVERTISED RATES AN AGENCY OFFICIAL SAID THE DEPARTMENT WILL CONTINUE TO MONITOR SALES BUT HAS NO OTHER CASES IN THE PIPELINE TRANSPORTATION DEPARTMENT OFFICIALS HAVE TESTIFIED THAT ON AVERAGE OFFERING 10 OF SEATS AT THE LOW PRICE IS A ROUGH MINIMUM FOR A LEGITIMATE SALE THE ACTUAL NUMBER OF SEATS AVAILABLE AT LOW FARES CAN CHANGE FROM FLIGHT TO FLIGHT OR DAY TO DAY BUT A CUMULATIVE MINIMUM OF ABOUT 10 MUST BE OFFERED IN THE CONTINENTAL CASE THE CARRIER RAN ADS OFFERING LOW FARES ON ITS NEWARK NJ TO EUROPE FLIGHTS BUT ONLY OFFERED ABOUT 7 OF ITS TOTAL SEATS AT THE LOW RATES AGENCY INVESTIGATORS SAID AFTER THE DEPARTMENT CALLED TO EXPRESS CONCERN OVER THE LACK OF SPACE CONTINENTAL INCREASED THE NUMBER OF REDUCEDFARE SEATS TO MORE THAN 10 AN AGENCY OFFICIAL SAID THE AGENCY ALSO CITED CONTINENTAL FOR SETTING LONG BLACKOUT PERIODS WHEN THE RATES WEREN'T AVAILABLE BUT DIDN'T TELL CONSUMERS ACCORDING TO THE CONSENT ORDER LOW FARES ARE GOOD FOR CONSUMERS BUT ONLY WHEN THERE ARE SEATS AVAILABLE TRANSPORTATION SECRETARY FEDERICO PENA SAID WE WON'T TOLERATE AIRLINES' LOW FARENO FAIR' PRACTICES A SPOKESMAN FOR CONTINENTAL SAID WE COOPERATED FULLY IN THE INVESTIGATION AND WHILE WE FELT THERE WERE A SUFFICIENT NUMBER OF SEATS AVAILABLE THE DOT FELT OTHERWISE AND THAT'S WHY WE REACHED A COMPROMISE THE AVERAGE NUMBER OF SEATS CONTINENTAL HAD AVAILABLE FOR THE SALE PRICES MEASURED IN THE DOZENS THE SPOKESMAN SAID ALSO THIS YEAR THE AGENCY BROUGHT A CASE AGAINST ICELANDAIR CONCERNING ITS 1991 PROMOTION OF SERVICE TO LUXEMBOURG FROM NEW YORK AND WASHINGTON/BALTIMORE THE FARE WASN'T AVAILABLE BETWEEN DEC 12 1991 AND DEC 24 OF THAT YEAR BUT THE CARRIER DIDN'T DISCLOSE THAT RESTRICTION 9311010150 931101 CANADIAN OUTPUT IS UP OTTAWA CANADA'S GROSS DOMESTIC PRODUCT ROSE 01 IN AUGUST FROM JULY LED BY A PICKUP IN MANUFACTURING OUTPUT STATISTICS CANADA A GOVERNMENT AGENCY SAID THE AUGUST FIGURE WAS CONSISTENT WITH PREDICTIONS BY THE BANK OF CANADA AND OTHERS THAT THE JULYSEPTEMBER PERIOD WILL SHOW SLOWER ECONOMIC GROWTH THAN PREVIOUS QUARTERS THIS YEAR IN THE APRILJUNE PERIOD GDP THE TOTAL VALUE OF THE COUNTRY'S OUTPUT OF GOODS AND SERVICES ROSE AT A COMPOUND ANNUAL RATE OF 34 9311010149 931101 DIVIDEND NEWS ROLLINS ENVIRONMENTAL SERVICES INC ROLLINS ENVIRONMENTAL SERVICES INC WILMINGTON DEL SAID ITS BOARD OMITTED THE QUARTERLY DIVIDEND THAT WOULD HAVE BEEN PAID DEC 20 CITING SOFTNESS IN THE COMMERCIAL WASTETREATMENT BUSINESS THE COMPANY HAS BEEN PAYING 25 CENTS QUARTERLY OR ABOUT 6 MILLION A YEAR IN DIVIDEND PAYMENTS THE SAVINGS WILL BE USED FOR CAPITAL IMPROVEMENTS ROLLINS SAID THE BOARD SAID IT WILL PERIODICALLY REVIEW THE DIVIDEND POLICY LAST THURDAY ROLLINS REPORTED THAT FOURTHQUARTER NET INCOME PLUNGED TO 520000 OR ONE CENT A SHARE FROM 91 MILLION OR 15 CENTS A SHARE A YEAR EARLIER IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY ROLLINS SHARES FELL 375 CENTS TO 525 9311010148 931101 FINANCING BUSINESS IPSCO INC IPSCO INC SAID IT AGREED TO SELL FIVE MILLION COMMON SHARES TO A GROUP OF UNDERWRITERS FOR 2720 CANADIAN DOLLARS US2054 A SHARE OR TOTAL PROCEEDS OF C136 MILLION IPSCO SAID THE SALE TO A GROUP OF UNDERWRITERS LED BY GORDON CAPITAL CORP SHOULD BE COMPLETED IN ABOUT FOUR WEEKS SUBJECT TO REGULATORY APPROVAL THE COMPANY CURRENTLY HAS ABOUT 22 MILLION SHARES OUTSTANDING IPSCO A STEEL PRODUCER IN REGINA SASKATCHEWAN SAID THE PROCEEDS WILL BE ADDED TO ITS WORKING CAPITAL AND WILL BE USED TO HELP FINANCE CONSTRUCTION OF A PROPOSED MINIMILL IN THE US THE MILL ESTIMATED TO COST US360 MILLION WOULD BE CAPABLE OF PRODUCING ONE MILLION TONS OF FLATROLLED STEEL A YEAR THE COMPANY HAS YET TO DECIDE ON A LOCATION FOR THE PROJECT 9311010147 931101 JAPAN'S JVC SAYS ITS LOSS NARROWED IN FISCAL FIRST HALF TOKYO AUDIOVIDEO EQUIPMENT MAKER VICTOR CO OF JAPAN KNOWN AS JVC REPORTED THAT ITS UNCONSOLIDATED PRETAX LOSS NARROWED TO 987 BILLION YEN 913 MILLION IN THE FISCAL FIRST HALF ENDED SEPT 30 FROM 1355 BILLION YEN IN THE YEAREARLIER SIX MONTHS THE COMPANY POSTED A NET LOSS OF 1063 BILLION YEN DOWN FROM A YEAREARLIER NET LOSS OF 1595 BILLION YEN SALES SLIPPED 08 TO 25144 BILLION YEN FROM 25351 BILLION JVC SAID THE DROP IN SALES REFLECTED WEAK ECONOMIES AND RESULTANT SLUGGISH DEMAND IN JAPAN AND EUROPE THE PROBLEMS WERE COMPOUNDED BY THE APPRECIATION OF THE YEN IN THE CURRENCY MARKETS WHICH EATS INTO RETURNS FROM ABROAD JVC SAID IT WAS PARTICULARLY HARD HIT LIKE MANY ELECTRONICS COMPANIES BECAUSE EXPORTS MAKE UP MORE THAN HALF OF ALL SALES JVC ADDED THAT ITS LOSS NARROWED MAINLY BECAUSE OF LOWER INTEREST COSTS FOR THE FULL FISCAL YEAR WHICH ENDS MARCH 31 1994 JVC SAID IT SEES SEVERE CONDITIONS PERSISTING GIVEN SLUGGISH DEMAND AND STIFF PRICE COMPETITION IN THE AUDIOVISUAL EQUIPMENT FIELD THE COMPANY LEFT UNCHANGED ITS FULLYEAR FORECAST IN WHICH IT SAYS IT EXPECTS UNCONSOLIDATED PRETAX PROFIT OF 25 BILLION YEN AND IN AN EXPECTED MOVE JVC SAID IT WON'T ISSUE A MIDTERM DIVIDEND AS FOR REDUCING STAFF JVC ALREADY HAS ANNOUNCED PLANS TO TRIM ITS WORK FORCE BY 2000 BY THE END OF THE NEXT FISCAL YEAR BY CUTTING BACK ON NEW HIRES AND ENCOURAGING OLDER EMPLOYEES TO RETIRE EARLY A COMPANY OFFICIAL SAID JVC WILL TEMPORARILY LOWER THE MINIMUM AGE FOR MANAGERS TO PARTICIPATE IN ITS EARLYRETIREMENT PROGRAM WITH FULL RETIREMENT BENEFITS TO 50 YEARS FROM 55 YEARS THE OFFER WILL END IN LATE JANUARY OR FEBRUARY THE OFFICIAL SAID 600 OF THE 2000 JOBS TO BE SHED WILL COME FROM A COMBINATION OF EARLY RETIREES AND TRANSFEREES TO NUMEROUS SUBSIDIARIES AND AFFILIATES VICTOR CO OF JAPAN KNOWN AS JVC IS PREDICTING AN UNCONSOLIDATED PRETAX LOSS OF 25 BILLION YEN 2304 MILLION FOR THE FISCAL YEAR ENDING MARCH 31 IN AN ARTICLE YESTERDAY IT WAS INCORRECTLY REPORTED THAT THE COMPANY WAS PREDICTING A PRETAX PROFIT OF THAT AMOUNT FOR THE YEAR 9311010146 931101 LATIN AMERICA'S CURRENCIES OFFER A NEW STABILITY SOME LOSE VALUE DAILY BUT INVESTORS PERCEIVE A MARKET IN CONTROL BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK LATIN AMERICA'S CURRENCIES FAMOUS FOR WILD DEPRECIATION DURING THE 1980S HAVE BECOME SOME OF THE WORLD'S MOST PREDICTABLE THOUGH SOME STILL LOSE VALUE DAILY THEY DEPRECIATE SO RELIABLY THAT INVESTORS OFTEN DON'T EVEN BOTHER TO HEDGE THEMSELVES AS THEY WOULD FOR INVESTMENTS IN MORE VOLATILE YEN OR MARKS THERE ARE A NUMBER OF FACTORS BEHIND THE NEW STABILITY LATIN AMERICAN GOVERNMENTS ARE FLUSH WITH EXCHANGE RESERVES BUILT UP AS FOREIGNERS BUY INTO PRIVATIZATIONS AND GOVERNMENT BONDS IN ADDITION CENTRAL BANKS HAVE SHOWN A WILLINGNESS TO ATTEND TO THEIR CURRENCIES' VALUE WITH NEARCONSTANT MARKET INTERVENTION AND FINANCE MINISTERS HAVE TAKEN A TOUGH STANCE AGAINST SPECULATORS LIMITING THE POTENTIAL FOR PROFITING ON QUICK MARKET MOVES CHILE FOR EXAMPLE ALLOWS ITS PESO TO FLOAT WITHIN A 10 BAND BASED ON MAJOR WORLD CURRENCIES BUT A REQUIREMENT THAT FUNDS REMAIN IN THE COUNTRY FOR AT LEAST A YEAR KEEPS SPECULATORS FROM PLAYING AGAINST THE BAND AS THEY HAVE AGAINST EUROPE'S EXCHANGE RATE MECHANISM ALTHOUGH THE FLOW OF INVESTMENT INTO CHILE WOULD TEND TO PUSH UP THE PESO THE CENTRAL BANK DIPS INTO CHILE'S HUGE 102 BILLION FOREIGNEXCHANGE RESERVE ON A NEARDAILY BASIS TO KEEP THE CURRENCY IN CHECK AND EXPORTS COMPETITIVE VENEZUELA'S BOLIVAR BY CONTRAST LOSES VALUE NEARLY EVERY DAY IN TANDEM WITH THE COUNTRY'S 36 ANNUAL INFLATION RATE AT THE SAME TIME THE CENTRAL BANK SETS THE RATE ON ITS 91DAY ZEROCOUPON BONDS AT AN ANNUALIZED 51 ALLOWING INVESTORS IMPRESSIVE REAL YIELDS STEADY CURRENCIES SAY ANALYSTS HELP LATIN AMERICAN COUNTRIES ATTRACT THE FOREIGN CAPITAL THEY NEED TO RESTRUCTURE THE INTRAAMERICAN DEVELOPMENT BANK ESTIMATES INVESTMENT FLOWED INTO LATIN AMERICA AT A RATE OF 482 BILLION IN 1992 UP SHARPLY FROM 163 BILLION IN 1990 TRADING VOLUME IN LATIN AMERICAN CURRENCIES IS STILL RELATIVELY SLIM IN A TRILLIONDOLLARADAY INTERNATIONALCURRENCY MARKET ANALYSTS SAY THE MEXICAN PESO IS THE MOSTTRADED LATIN AMERICAN CURRENCY WITH A VOLUME OF AROUND 2 BILLION A DAY OTHER LATIN AMERICAN CURRENCIES TRADE LESS THAN A QUARTER OF THAT BUT DEMAND IS GROWING PARTLY BECAUSE TRADE WITH LATIN AMERICA HAS INCREASED AND PARTLY BECAUSE INVESTORS NEED LOCAL CURRENCIES TO CHASE INVESTMENTS IN LOCAL GOVERNMENT BONDS REAL ANNUAL YIELDS CAN REACH 15 OUTSHINING THE SINGLEDIGIT YIELDS ON DOLLARDENOMINATED LATIN AMERICAN EUROBONDS AND OTHER INSTRUMENTS US BANKS SAY THEY HAVE BEEN EXPANDING LATIN AMERICAN CURRENCY OPERATIONS TO MEET CUSTOMER DEMAND LATIN AMERICAN CURRENCY TRADING IS A WAY TO COMPLIMENT OUR LOCAL SECURITIES BUSINESS AND SERVE OUR INTERNATIONAL INVESTORS WHO ARE INTERESTED IN LOCAL CURRENCY INVESTMENTS SAID JORGE JASSON SENIOR VICE PRESIDENT FOR INTERNATIONAL CAPITAL MARKETS AT CHASE MANHATTAN BANK RISK TO BE SURE IS STILL A FACTOR BRAZIL'S ECONOMY IS A SHAMBLES AND VENEZUELA'S POLITICAL SITUATION REMAINS UNCERTAIN BUT TRADERS SAY THAT COUNTRIES ARE LIKELY TO TRY TO KEEP CURRENCIES AS PREDICTABLE AS POSSIBLE PARTICULARLY SINCE ELECTIONS ARE NEAR VENEZUELA HAS A NATIONAL VOTE IN DECEMBER WHILE BRAZIL AND ARGENTINA HAVE ELECTIONS IN 1994 FURTHERMORE ANALYSTS POINT OUT THAT LATIN AMERICA'S CENTRAL BANKS HAVE LEARNED HOW TO GUIDE CURRENCIES LOWER IN ORDER TO ENHANCE EXPORT COMPETITIVENESS WHILE MAINTAINING INVESTOR TRUST BRAZIL FOR EXAMPLE INTERVENES IN THE MARKET TO ASSURE A RELIABLE 15 DAILY WEAKENING OF THE CRUZIERO REAL AT THE SAME TIME IT OFFERS A 4925 YIELD ON ITS 28DAY BILLS WHICH MORE THAN OFFSETS THE DEVALUATION THE WEAK CRUZIERO REAL HAS SPARKED A BOOM IN BRAZILIAN EXPORTS TO THE STRONGCURRENCY COUNTRIES OF CHILE AND ARGENTINA AND HAS RAISED CALLS FOR PROTECTIONISM IN THOSE COUNTRIES AS WELL AS DEMANDS FROM LOCAL EXPORTERS THAT THOSE COUNTRIES HOLD BACK THEIR OWN CURRENCIES' VALUES CHILE HAS HEEDED SUCH COMPLAINTS ITS PESO TRADING AROUND 400 TO THE DOLLAR WOULD PROBABLY BE MORE EXPENSIVE IF NOT FOR GOVERNMENT EFFORTS TO HOLD IT BACK BUT ARGENTINA INSISTS THAT IT WILL REMAIN COMMITTED TO THE 1TO1 PESOTODOLLAR RATIO IT STRUCK IN 1991 IN A BID TO WIN INVESTOR CONFIDENCE INDEED ITS CENTRAL BANK KEEPS HUGE DOLLAR RESERVES THAT MATCH THE SUPPLY OF PESOS IN CIRCULATION AND INTERVENES IN THE MARKET SEVERAL TIMES A WEEK VENEZUELA HOWEVER MIGHT BE ANOTHER STORY PARTICULARLY IN LIGHT OF A HOTLY CONTESTED ELECTION DUE IN DECEMBER ERNEST W BROWN AN ANALYST AT MORGAN STANLEY LATIN AMERICAN EQUITY RESEARCH SAID THE CENTRAL BANK MIGHT SLIGHTLY SLOW THE DEVALUATION OF THE BOLIVAR BEFORE DECEMBER'S ELECTION THEN SPEED IT AFTERWARD IN A BID TO PROMOTE GROWTH THROUGH EXPORTS DESPITE THE CURRENCY'S RECENT DROP TO A HISTORICAL LOW OF 100 BOLIVAR TO THE DOLLAR THE CENTRAL BANK HASN'T LOST CONTROL OF THE CURRENCY BY ANY MEANS MR BROWN SAID 9311010145 931101 SIAM CEMENT SEEKS TO BUY 25 OF CONCERN BY CYNTHIA OWENS STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK SIAM CEMENT CO THAILAND'S LARGEST CEMENT PRODUCER IS NEGOTIATING TO BUY ABOUT 25 OF NEWCOMER ASIA CEMENT CO A SPOKESMAN FOR SIAM CEMENT SAID THOUGH THE TWO COMPANIES HAVE ALREADY COOPERATED IN SOME AREAS ANALYSTS SAID A FORMAL PARTNERSHIP SHOULD LOWER PRODUCTION COSTS FOR BOTH AS COMPETITION IN THE BUSINESS HEATS UP IT ALSO COULD HELP ASIA CEMENT WHICH STARTED PRODUCTION ONLY IN SEPTEMBER WITH MARKETING WHILE ALLOWING SIAM CEMENT TO SLOW ITS OWN EXPANSION PLANS WITHOUT ENDANGERING ITS DOMINANT MARKET SHARE OF ABOUT 57 WE VIEW SIAM CEMENT'S INVOLVEMENT POSITIVELY SAID SUSHEEL NARULA AN ANALYST WITH SMITH NEW COURT SOUTHEAST ASIA LTD IN BANGKOK THE SIAM CEMENT SPOKESMAN SAID IT COULD TAKE SEVERAL WEEKS FOR THE TWO COMPANIES TO NEGOTIATE THE TRANSACTION STOCK ANALYSTS SAID THAT UNDER THE TRANSACTION UNLISTED ASIA CEMENT WILL LIKELY ISSUE ABOUT 800 MILLION BAHT 316 MILLION OF NEW SHARES TO BE SOLD TO SIAM CEMENT LAST YEAR SIAM CEMENT HAD PROFIT OF 398 BILLION BAHT ON REVENUE OF 3571 BILLION BAHT FOR MORE THAN A YEAR THE THAI CEMENT INDUSTRY HAS ENDURED A SLUMP CAUSED BY OVERCAPACITY AND A FALL IN DEMAND MEANWHILE DEREGULATION LAST YEAR OPENED THE CEMENT MARKET TO NEW PRODUCERS THOUGH IMPORTS AND EXPORTS REMAIN CONTROLLED THE INDUSTRY GLOOM HAD WEIGHED ON SIAM CEMENT'S STOCK LONG A BLUECHIP FAVORITE AMONG FOREIGN INVESTORS THE COMPANY'S EXPANSION INTO NEW BUSINESSES SUCH AS PETROCHEMICALS AND PULP AND PAPER ALSO DIDN'T CHEER INVESTORS BUT SINCE THE END OF SEPTEMBER THE SHARES HAVE RISEN IN LINE WITH THE OVERALL MARKET CLIMBING 28 TO FRIDAY'S CLOSE OF 748 BAHT ANALYSTS BELIEVE THE OUTLOOK FOR CEMENT PRODUCERS NOW SHOWS SIGNS OF IMPROVING THERE HAS BEEN GROWTH IN CEMENT SALES A NUMBER OF NEW INFRASTRUCTURE PROJECTS WILL ENSURE A HIGH LEVEL OF GROWTH IN THE CONSTRUCTION SECTOR SAID KORN CHATIKAVANIJ MANAGING DIRECTOR FOR JARDINE FLEMING THANAKORN SECURITIES LTD IN BANGKOK ANALYSTS SAID THAT BY COMBINING SOME RESOURCES SIAM CEMENT AND ASIA CEMENT WILL BE POISED TO BOOST PROFIT MARGINS AS BUSINESS PICKS UP ASIA CEMENT DEPUTY MANAGING DIRECTOR NOPADOL RAMYARUPA HAS SAID THAT THE COMPANY HOPES TO CAPTURE 5 TO 10 OF THE MARKET IN THE NEXT YEAR TPI POLINE CO WHICH BEGAN PRODUCTION EARLIER THIS YEAR HAS USED AN AGGRESSIVE MARKETING AND PRICING CAMPAIGN TO WIN ABOUT 10 OF THE MARKET LARGELY AT SIAM CEMENT'S EXPENSE OF THE COUNTRY'S OTHER TWO LONGTIME PRODUCERS SIAM CITY CEMENT CO HAS A MARKET SHARE OF ABOUT 28 AND JALAPRATHAN CEMENT CO WHICH HAS BEEN UNDERGOING MANAGEMENT CHANGES IN THE PAST TWO MONTHS HAS A 7 SHARE 9311010144 931101 BUSINESS BRIEF AETNA POSTS 29 INCREASE IN EARNINGS AIDED BY PROPERTY AND CASUALTY RESULTS AETNA LIFE & CASUALTY CO REPORTED A 29 SURGE IN THIRDQUARTER PROFIT BUOYED BY IMPROVED RESULTS IN ITS PROPERTY AND CASUALTY OPERATIONS THE RESULTS SURPRISED INVESTORS WHO BID UP AETNA'S STOCK 2875 OR 46 TO 6575 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY AETNA EARNED 2256 MILLION OR 203 A SHARE AGAINST 1744 MILLION OR 159 A SHARE A YEAR AGO REVENUE FELL SLIGHTLY TO 401 BILLION FROM 427 BILLION LAST YEAR'S RESULTS INCLUDED LOSSES ON HURRICANE ANDREW BUT EXCLUDING ANDREW CLAIMS AETNA REPORTED STRONG GROWTH IN THE PERIOD PARTICULARLY IN ITS PROPERTY AND CASUALTY BUSINESSES MUCH OF THE GROWTH CAME FROM COST CUTTING FOURTEEN MONTHS AGO AETNA ANNOUNCED PLANS TO DISMISS 4800 PEOPLE NATIONWIDE SINCE THEN THE COMPANY HAS FOUND MORE CUTS LETTING GO 200 MORE PEOPLE THAN ORIGINALLY PLANNED MORE TRIMMING COULD BE ON THE WAY WHICH COULD SPELL ADDITIONAL TROUBLE FOR AETNA'S HOME CITY OF HARTFORD CONN NOT TO MENTION MORALE WITHIN AETNA THE REVIEW OF THE BUSINESSES IS ONGOING SAID AN AETNA SPOKESMAN THEY'LL CONTINUE TO LOOK FOR WAYS TO SAVE MONEY ACCORDING TO SANFORD C BERNSTEIN ANALYST WESTON HICKS AETNA'S COSTS ARE DOWN MORE THAN 8 HE SAID THE IMPACT OF THE LAYOFFS ON THE BOTTOM LINE IS EVEN GREATER AND COMING MORE QUICKLY THAN EXPECTED AETNA'S COMMERCIAL PROPERTY AND CASUALTY BUSINESS SAW THE GREATEST INCREASE IN PROFIT OPERATING EARNINGS ROSE TO 70 MILLION FROM 29 MILLION A YEAR AGO WHICH INCLUDED 29 MILLION IN LOSSES FROM CATASTROPHES INCLUDING HURRICANE ANDREW PERSONAL PROPERTY AND CASUALTYCAR AND HOMEOWNERS' INSURANCESAW OPERATING PROFIT RISE TO 23 MILLION FROM 16 MILLION A YEAR AGO WHICH INCLUDED 30 MILLION IN CATASTROPHES IN ADDITION TO THE LAYOFFS IMPROVED UNDERWRITING RESULTS HELPED PROPERTY AND CASUALTY PROFITS HEALTH AND LIFE INSURANCE PROFIT ROSE TO 92 MILLION FROM 88 MILLION AETNA'S INTERNATIONAL OPERATIONS EARNED 8 MILLION HELPED BY RESULTS FROM THE PACIFIC RIM AND MEXICO LAST YEAR THE SEGMENT BROKE EVEN 9311010143 931101 WHO'S NEWS DATA I/O CORP NAMES ERXLEBEN PRESIDENT CHIEF AND POSTS LOSS REDMOND WASH DATA I/O CORP NAMED WILLIAM C ERXLEBEN PRESIDENT AND CHIEF EXECUTIVE OFFICER AND STEVEN M GORDON ACTING CHIEF FINANCIAL OFFICER MR ERXLEBEN A DATA I/O DIRECTOR SUCCEEDS THOMAS R CLARK WHO RESIGNED FRIDAY MR GORDON VICE PRESIDENT OF FINANCE SUCCEEDS JOHN J HAGEDORN II WHO ALSO RESIGNED FRIDAY THE ELECTRONICS COMPANY DIDN'T RETURN CALLS REQUESTING DETAILS OF THE MANAGEMENT CHANGES UNDER MR CLARK AND MR HAGEDORN DATA I/O'S EARNINGS HAVE FALLEN EVERY QUARTER THIS YEAR THE COMPANY REPORTED A THIRDQUARTER NET LOSS OF 13 MILLION OR 18 CENTS A SHARE COMPARED WITH NET INCOME OF 615000 OR NINE CENTS A SHARE A YEAR EARLIER SALES FELL TO 149 MILLION FROM 174 MILLION A COMPANY STATEMENT ATTRIBUTED THE RESULTS TO AMONG OTHER THINGS SEVERE RECESSIONS IN EUROPE AND JAPAN AND FALLING PRICES IN SOME OF ITS MAIN MARKETS IT SAID IT IS LOOKING AT A NUMBER OF MEASURES TO CUT COSTS AND THAT PENDING BOARD APPROVAL OF A RESTRUCTURING PLAN IT WILL TAKE A ONETIME CHARGE THAT WILL HAVE A SIGNIFICANT ADVERSE EFFECT ON FOURTHQUARTER RESULTS EVEN WITHOUT THE POTENTIAL RESTRUCTURING CHARGE THE COMPANY EXPECTS TO POST OPERATING LOSSES IN THE NEXT TWO QUARTERS DATA I/O'S SHARES CLOSED AT 2625 DOWN 375 CENTS OR 13 IN NATIONAL OVERTHECOUNTER TRADING FRIDAY 9311010142 931101 WHO'S NEWS DOSKOCIL'S PRESIDENT AND CEO WILL RETIRE NET FELL IN 3RD PERIOD HUTCHINSON KAN DOSKOCIL COS SAID JOHN T HANES PLANS TO RETIRE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER TWO YEARS AFTER HE WAS TAPPED TO HELP STEER THE MEAT PROCESSOR OUT OF BANKRUPTCYLAW PROCEEDINGS MR HANES 57 YEARS OLD SAID IN A STATEMENT THAT HE WILL REMAIN AT THE COMPANY UNTIL A SUCCCESSOR IS NAMED A SEARCH BY THE BOARD IS UNDER WAY MR HANES JOINED DOSKOCIL IN NOVEMBER 1991 AFTER SERVING AS PRESIDENT AND CHIEF EXECUTIVE OF THE COMPANY'S WILSON BRANDS DIVISION IT WAS THE TAKEOVER OF WILSON THREE YEARS EARLIER THAT PLUNGED DOSKOCIL INTO DEBT AND LED TO THE CHAPTER 11 FILING SINCE JOINING THE COMPANY MR HANES HAS TRIMMED DOWN DOSKOCIL CLOSING HOGSLAUGHTERING AND PROCESSING PLANTS AND SHIFTED THE COMPANY'S FOCUS TO HIGHERMARGIN PROCESSED MEATS THE COMPANY BROKE INTO THE BLACK IN THIS YEAR'S SECOND QUARTER THOUGH RESULTS IN THE THIRD PERIOD ANNOUNCED FRIDAY WERE BELOW THE PRIOR YEAR'S RESULTS THE COMPANY REPORTED NET INCOME OF 813000 OR 10 CENTS A SHARE DOWN FROM 27 MILLION OR 47 CENTS A SHARE A YEAR EARLIER SALES FELL 12 TO 1687 MILLION FROM 1923 MILLION DOSKOCIL SAID THE LATEST RESULTS INCLUDE A 13 MILLION INCREASE IN INCOME TAX EXPENSES AND AN 800000 JUMP IN INTEREST EXPENSES RELATING TO A REFINANCING COMPLETED EARLIER THIS YEAR IN NATIONAL OVERTHECOUNTER MARKET TRADING FRIDAY DOSKOCIL STOCK CLOSED UP 50 CENTS OR 48 TO 11 A SHARE 9311010141 931101 ULTIMATE EXCHAIRMAN FACES NEW CHARGES IN PITNEY BOWES CASE NEWARK NJ THEODORE SABARESE FORMER PRESIDENT AND CHAIRMAN OF ULTIMATE CORP FACES NEW CHARGES THAT HE TRIED TO DEFRAUD PITNEY BOWES CREDIT CORP A FEDERAL ATTORNEY SAID US ATTORNEY MICHAEL CHERTOFF SAID THAT MR SABARESE WAS CHARGED IN A SECOND SUPERSEDING INDICTMENT WITH ALLEGED CONSPIRACY TO DEFRAUD THE UNIT OF STAMFORD CONNBASED PITNEY BOWES INC A MAKER OF BUSINESS EQUIPMENT AND FINANCIAL SERVICES PROVIDER ACCORDING TO THE NEW ALLEGATIONS MR SABARESE PROVIDED FALSE INFORMATION IN 1988 ABOUT HIS ASSETS TO OBTAIN A JET AIRCRAFT PURCHASE LOAN SAID ASSISTANT US ATTORNEY GARY L CUTLER THE INDICTMENT WAS RETURNED OCT 29 BY A NEWARK FEDERAL GRAND JURY THE NEW PITNEY BOWESRELATED CHARGES WHICH INCLUDE BANK FRAUD WIRE FRAUD AND CONSPIRACY TO COMMIT BANK AND WIRE FRAUD FOLLOW A SEPTEMBER SUPERSEDING INDICTMENT THE ORIGINAL CHARGE LODGED IN AUGUST ALLEGED THAT MR SABARESE 53 YEARS OLD AND TWO OTHER MEN DEFRAUDED BANKS OF MORE THAN 5 MILLION BY PLANNING TO FINANCE THE PURCHASE OF A JET AIRCRAFT ABOVE PURCHASE PRICE USING THE EXCESS FINANCING FOR THEIR OWN PURPOSES AT THAT TIME MR SABARESE WAS INDICTED ON 29 FEDERAL CHARGES OF DEFRAUDING BANKS IN FOUR STATES MR SABARESE RESIGNED IN SEPTEMBER AS PRESIDENT AND CHIEF EXECUTIVE OF THE FLORIDABASED DIGITAL PRODUCTS CORP WHICH MAKES ELECTRONIC ANKLE BRACELETS FOR CONVICTS SENTENCED TO HOME CONFINEMENT IN ADDITION TO SERVING AS PRESIDENT AND CHAIRMAN HE WAS THE FOUNDER OF ULTIMATE CORP A HANOVER NJBASED COMPUTER SYSTEMS CONCERN 9311010140 931101 BUILDING CONTRACTS SHOWED RISE OF 1 DURING SEPTEMBER BY JACQUELINE SIMMONS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NEW CONSTRUCTION CONTRACTS ROSE A SLIM 1 IN SEPTEMBER MAINLY DUE TO A SURGE IN PUBLIC WORKS BUILDING AN FW DODGE SURVEY REPORTED ALTHOUGH SEPTEMBER'S GAIN WAS SMALL THE THIRD QUARTER'S CONSISTENT PATTERN OF ACTIVITY SHOWS THE CONSTRUCTION INDUSTRY IS BEGINNING TO LIFT ITSELF UP FROM 1993'S FIRSTHALF DOLDRUMS SAID ROBERT A MURRAY VICE PRESIDENT OF ECONOMIC AFFAIRS AND CHIEF ECONOMIST FOR FW DODGE THE FORECASTING UNIT OF MCGRAWHILL INC MR MURRAY SAID THE THIRDQUARTER ACTIVITY SUGGESTS THAT THE ON AND OFF' RECOVERY IS ON' AGAIN PARTICULARLY IN HOUSING AND PUBLIC WORKS IN ITS MONTHLY SURVEY DODGE REPORTED THAT NEW CONTRACTS IN SEPTEMBER TOTALED 26269 BILLION ON A SEASONALLY ADJUSTED BASIS UP FROM 2605 BILLION IN AUGUST THE DODGE INDEX FOR SEPTEMBER WAS 101 UP FROM 100 IN AUGUST THE SEASONALLY ADJUSTED INDEX USES 1987 AS A BASE OF 100 NONBUILDING CONSTRUCTION INCLUDING PUBLIC WORKS SUCH AS STREETS HIGHWAYS AND AIRPORTS CLIMBED A SEASONALLY ADJUSTED 7 IN SEPTEMBER TO 5806 BILLION DURING THE FIRST NINE MONTHS OF 1993 HIGHWAY CONTRACTS WERE UP 11 WHILE BRIDGE CONTRACTS INCREASED 17 SEPTEMBER SHOWED A STRONG INCREASE IN SEWER CONSTRUCTION A CATEGORY THAT HAD BEEN RELATIVELY SUBDUED FOR MOST OF 1993 DODGE SAID CONTRACTS FOR NONRESIDENTIAL BUILDING FELL 2 IN SEPTEMBER TO AN 8049 BILLION SEASONALLY ADJUSTED ANNUAL RATE COMMERCIAL BUILDING SHOWED THE GREATEST IMPROVEMENT UP 7 ALONG WITH MODEST IMPROVEMENT IN THE OFFICE HOTEL AND WAREHOUSE CATEGORIES FROM VERY WEAK LEVELS RESIDENTIAL BUILDING WAS UNCHANGED IN SEPTEMBER AT 12414 BILLION SEASONALLY ADJUSTED THE VALUE OF SINGLEFAMILY HOUSING CONSTRUCTION DROPPED A SLIGHT 1 FROM AUGUST WHILE THE SMALLER MULTIFAMILY SIDE OF THE MARKET SHOWED A 15 INCREASE MR MURRAY SAID A 10 RISE IN MULTIFAMILY CONSTRUCTION DURING THE FIRST NINE MONTHS OF THE YEAR MAKES IT APPARENT THAT 1993 WILL MARK THE END OF THIS DEPRESSED SECTOR'S SEVENYEAR DECLINE LAST WEEK DODGE PREDICTED A 4 RISE IN TOTAL CONSTRUCTION FOR 1993 TO 2611 BILLION THROUGH THE FIRST NINE MONTHS OF THE YEAR CONSTRUCTION ON AN UNADJUSTED BASIS WAS UP 3 TO 19868 BILLION FROM 19205 BILLION 9311010139 931101 WHO'S NEWS ADVANTA CORP ADVANTA CORP HORSHAM PA DAVID WESSELINK 50 YEARS OLD WAS NAMED A SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS CONSUMER FINANCE SERVICES CONCERN MR WESSELINK WAS VICE PRESIDENT AND TREASURER AT HOUSEHOLD INTERNATIONAL INC WARREN KANTOR 52 WHO HAS BEEN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF ADVANTA WILL MOVE TO THE NEWLY CREATED POST OF VICE CHAIRMAN 9311010138 931101 HEARD ON THE STREET WILL BIDDING ON PARAMOUNT GO HIGHER BY RANDALL SMITH AND LAURA LANDRO STAFF REPORTERS OF THE WALL STREET JOURNAL NOW THAT VIACOM HAS MATCHED THE 80ASHARE 10 BILLION BID BY QVC NETWORK FOR PARAMOUNT COMMUNICATIONS THE QUESTION IS WILL QVC CHAIRMAN BARRY DILLER GO ANY HIGHER AFTER ALL THE BIDDING FOR PARAMOUNT ALREADY IS STARTING TO APPROACH THE LOFTY LEVELS PAID BY JAPANESE ACQUIRERS OF US FILM STUDIOS A FEW YEARS AGO BIDS OVER 80 DON'T MAKE A WHOLE LOT OF ECONOMIC SENSE SAYS LAWRENCE HAVERTY A MONEY MANAGER AT STATE STREET RESEARCH & MANAGEMENT MOST ANALYSTS THINK IT'S UP TO MR DILLER TO MAKE THE NEXT MOVE IF HE WANTS TO BREAK UP THE VIACOMPARAMOUNT MARRIAGE AND AT LEAST ONE ANALYST LISBETH BARRON OF SG WARBURG THINKS IT WOULD BE SLIGHTLY EASIER FOR MR DILLER TO RAISE HIS BID WITHOUT TAKING ON TOO MUCH BURDENSOME DEBT THAN IT WOULD BE FOR VIACOM CHAIRMAN SUMNER REDSTONE TO DO SO THAT'S MAINLY BECAUSE VIACOM ENTERED THE BIDDING WITH 24 BILLION IN EXISTING DEBT IN ADDITION VIACOM RAISED 18 BILLION FROM BLOCKBUSTER ENTERTAINMENT AND NYNEX BY SELLING CONVERTIBLE PREFERRED STOCK WITH A 5 DIVIDEND WHICH MS BARRON COUNTS AS DEBT ONLY HALF THE 2 BILLION QVC RAISED FROM FOUR OUTSIDE INVESTORS IS DIVIDENDPAYING PREFERRED MR HAVERTY NOTES THAT BANK DEBT IS CHEAP FINANCING AT THE MOMENT BUT COULD PROVE MORE BURDENSOME IF SHORTTERM INTEREST RATES RISE BECAUSE THE BANK DEBT CARRIES FLOATINGRATE INTEREST IF INTEREST RATES RISE SHARPLY THE LITTLE SINS THAT A HIGH BID CREATES COULD TURN INTO BIG SINS HE SAYS IF THE BIDDING ESCALATES TO 90 A SHARE MS BARRON SAYS THE 112 BILLION PRICE TAG OF PARAMOUNT WOULD RANK SECOND ONLY TO SONY'S 66 BILLION ACQUISITION OF COLUMBIA PICTURES AS A MULTIPLE OF CASH FLOW AT SUCH LEVELS SHE SAYS YOU ARE NOT IN THIS THING TO GET AN ADEQUATE RETURN ON INVESTMENT ANYTIME SOON THE MOTIVE SHE SAYS IS NOT ONLY TO CAPTURE PARAMOUNT'S PROGRAMMING BUT ALSO TO KEEP IT AWAY FROM A COMPETITOR SONY FOR EXAMPLE ACQUIRED COLUMBIA HOPING TO USE THE MOVIE LIBRARY AS A WEAPON IN ESTABLISHING STANDARDS FOR NEW GENERATIONS OF VIDEOCASSETTE PLAYERS OR HIGHDEFINITION TV SETS BUT SONY'S UPHILL EFFORT TO SELL EIGHTMILLIMETER VIDEO CAMERAS SHOWS THAT A LIBRARY ISN'T ENOUGH TO GAIN ACCEPTANCE FOR A NEW STANDARD AND NEW DISTRIBUTION TECHNOLOGIES SUCH AS VIDEOONDEMAND COULD WEAKEN THE LINK BETWEEN PROGRAMMING AND HARDWARE SALES EVEN FURTHER NOR HAS SONY SUCCEEDED WITH COLUMBIA AS A PURE STUDIO PLAY IT SPENT SEVERAL HUNDRED MILLION DOLLARS TO INCREASE MOVIE PRODUCTION AND EXPAND TV BUT SOME MOVIES SUCH AS HOOK WERE SO EXPENSIVE THEY MADE SKIMPY PROFITS OTHERS INCLUDING LAST ACTION HERO WERE OUTRIGHT FLOPS MATSUSHITA ELECTRIC PAID A MORE SENSIBLE MULTIPLE FOR MCA PARENT OF UNIVERSAL BUT IT TOO HAD A LONG LIST OF PRICEY FLOPS UNTIL THIS YEAR WHEN JURASSIC PARK PASSED ET AS THE BOXOFFICE CHAMP NOW WITH STUDIO PRICES SOARING AGAIN SONY IS INTERESTED IN SEEKING NEW INVESTORS FOR COLUMBIA AND MATSUSHITA ALSO MAY EXPLORE SUCH A MOVE SOME INDUSTRY ANALYSTS POINT TO THE ACQUISITIONS OF FOX AND MGM AS MODELS FOR THE KIND OF SUCCESS QVC AND VIACOM ARE AIMING FOR WHEN TURNER BROADCASTING SYSTEM PURCHASED THE MGM FILM LIBRARY IN 1987 FOR 15 BILLION THE MOVE WAS WIDELY RIDICULED AS TOO EXPENSIVE ALTHOUGH IT EVENTUALLY COST TED TURNER OUTRIGHT CONTROL OF TBS HE USED THE FILM LIBRARY TO CREATE THE TNT CABLE CHANNEL RUPERT MURDOCH'S NEWS CORP ALSO TOOK ON HEAVY DEBT TO BUY BOTH THE FOX INC STUDIO FOR 488 MILLION AND THE METROMEDIA TV STATIONS FOR 2 BILLION BUT WITH MR DILLER'S HELP HE COMBINED FOX AND THE STATIONS TO FORM THE FOX TV NETWORK PROFITS FROM SUCH MOVIES AS HOME ALONE HELPED NEWS CORP WEATHER A ROUGH REFINANCING NEEDED AFTER MR MURDOCH OVERPAID FOR TV GUIDE THE BIGGEST HOME RUN FOR A 1980S STUDIO ACQUISITION WAS WALT DISNEY CO WHERE A BASS FAMILY GROUP GAINED CONTROL WITHOUT PAYING A PREMIUM AND LATER REAPED A TENFOLD PROFIT WHILE BETTER STUDIO MANAGEMENT HELPED GENERATE THAT GAIN THE ACT OF SIMPLY RAISING TICKET PRICES AT DISNEY'S THEME PARKS MADE A BIGGER DIFFERENCE BOTH MR DILLER AND MR REDSTONE HAVE SPENT ENDLESS HOURS WITH INVESTORS TALKING UP THEIR SEPARATE PLANS FOR PARAMOUNT BOTH MEN PLAN TO USE THE PARAMOUNT PROGRAMMING TO STRENGTHEN THEIR CABLE CHANNELS' OFFERINGS BUT FROM THAT POINT THEIR PLANS DIVERGE BOTH TURNER AND NEWS CORP SOLD ASSETS AFTER ACQUIRING THEIR PRIZES AND MR DILLER HAS SAID HE WOULD SELL PARAMOUNT'S TV STATIONS AND THEME PARKS MR REDSTONE RELUCTANT TO OFFEND PARAMOUNT'S INCUMBENT MANAGEMENT HASN'T MENTIONED ASSET SALES MR DILLER ALSO HAS SAID HE WOULD MANAGE THE STUDIO BETTER EDWARD HATCH AN ANALYST WITH UBS SECURITIES WHO HAS BEEN BRIEFED ON MR REDSTONE'S PLANS POINTS TO THREE OTHER WAYS VIACOM COULD MAKE PARAMOUNT PAY OFF FIRST HE COULD CUT 70 MILLION IN ANNUAL COSTS TO ELIMINATE DUPLICATE TV AND MOVIE STAFFING SECOND HE COULD OPEN THE KIND OF PARAMOUNT STUDIO STORES THAT DISNEY AND WARNER HAVE LAUNCHED TO SELL MOVIE MEMORABILIA THIRD MR HATCH SAYS VIACOM MAY MINE THE PARAMOUNT LIBRARY WITH STAR TREK AND INDIANA JONES TO SELL VIDEO AND COMPUTER GAMES VIACOM ORIGINALLY HAD HOPED TO BUY PARAMOUNT WITH ONLY 11 BILLION IN CASH AND THE REST IN STOCK NOW IT HAS BOOSTED THE CASH IN ITS BID TO 49 BILLION RAISED FROM BOTH BANK DEBT AND THE NEW PREFERRED STOCK IF VIACOM ACQUIRED PARAMOUNT AT SAY 90 A SHARE WITHOUT BRINGING IN ADDITIONAL EQUITY INVESTORS WARBURG'S MS BARRON SAYS IT COULD BE LEFT WITH TOTAL DEBT COUNTING THE CONVERTIBLE PREFERRED OF 84 BILLION 56 OF TOTAL CAPITAL AT THAT LEVEL ITS PROJECTED 1994 CASH FLOW WOULD COVER ITS INTEREST AND DIVIDENDS BY ONLY 25 TIMES IF QVC ACQUIRED PARAMOUNT AT 90 A SHARE WITHOUT SELLING ADDITIONAL EQUITY IT WOULD HAVE TOTAL DEBT OF 5 BILLION A SLIGHTLY MORE COMFORTABLE 42 OF TOTAL CAPITAL AND ITS PROJECTED 1994 CASH FLOW WOULD COVER ITS INTEREST AND DIVIDEND COSTS BY 28 TIMES NEITHER OF THOSE BALANCE SHEETS IS ANYTHING LIKE THE 80 DEBTTOCAPITAL THAT PLAGUED TIME INC AFTER IT ACQUIRED WARNER COMMUNICATIONS IN 1990 NOBODY'S PAYING AN ENORMOUS PREMIUM YET SAYS ANALYST JEFFREY LOGSDON OF SEIDLER COS BUT ANOTHER ANALYST SAYS THE BUYER IS ALREADY PAYING FOR THE VALUE HE'S GOING TO ADD ASIDE FROM BEING THE BIDDER FAVORED BY PARAMOUNT MR REDSTONE HAS ANOTHER ADVANTAGE OVER MR DILLER IF THE BIDDING GOES HIGHER A 100 MILLION FEE AND OPTIONS ON 24 MILLION PARAMOUNT SHARES AT 6914 A SHARE IF PARAMOUNT IS SOLD TO ANOTHER BUYER MR REDSTONE RECEIVED THOSE AS AN INDUCEMENT TO NEGOTIATE THE ORIGINAL MERGER WITH PARAMOUNT ANNOUNCED SEPT 12 AT A BID OF 80 A SHARE THOSE FEES AND OPTIONS WOULD COST MR DILLER AN EXTRA 360 MILLION OR ABOUT 3 PER PARAMOUNT SHARE AT A BID OF 90 A SHARE THE COST RISES TO 600 MILLION OR AN EXTRA 5 A SHARE YEAR ENDED OCT 31 1992 FIRST QUARTER JULY 31 1993 9311010137 931101 TWO FORMER WORKERS AT UBS SECURITIES INC PLEAD GUILTY TO FRAUD NEW YORK TWO FORMER EMPLOYEES OF UBS SECURITIES INC A UNIT OF UNION BANK OF SWITZERLAND PLEADED GUILTY IN FEDERAL COURT HERE TO PARTICIPATING IN A SCHEME TO DEFRAUD THE BANK OF MORE THAN 837000 AND USING THE MONEY FOR THEIR PERSONAL USE JOSE A ROMAN 35 YEARS OLD FACES A MAXIMUM OF 30 YEARS IN JAIL AND A POTENTIAL FINE OF 1 MILLION MARLON ISAAC 23 FACES A MAXIMUM OF FIVE YEARS IN JAIL AND A POTENTIAL FINE OF 250000 MR ROMAN A SUPERVISOR IN UBS SECURITIES' GOVERNMENT OPERATIONS DEPARTMENT FROM DECEMBER 1987 TO JUNE 1992 ADMITTED IN HIS PLEA THAT HE HAD EXECUTED HIS SCHEME FOR FOUR YEARS BEGINNING IN MARCH 1989 MR ISAAC WAS AN EMPLOYEE AT UBS SECURITIES FROM NOVEMBER 1989 UNTIL JUNE 1993 WHEN HE WAS ARRESTED FOR HIS PARTICIPATION IN THE SCHEME 9311010136 931101 WHO'S NEWS NATIONAL BANK OF CANADA NATIONAL BANK OF CANADA MONTREAL LEON COURVILLE WAS NAMED TO THE NEW POST OF PRESIDENT AND CHIEF OPERATING OFFICER MR COURVILLE 48 YEARS OLD HAD BEEN THE BANK'S SENIOR EXECUTIVE VICE PRESIDENT CORPORATE AFFAIRS 9311010135 931101 WHO'S NEWS AMERICAN HOME PRODUCTS CORP AMERICAN HOME PRODUCTS CORP MADISON NJ THE COMPANY SAID BERNARD CANAVAN WILL RETIRE AS PRESIDENT EARLY NEXT YEAR A COMPANY SPOKESMAN SAID A HISTORY OF HEART DISEASE WAS A CONSIDERATION ALONG WITH A DESIRE TO PURSUE PERSONAL INTERESTS IN DR CANAVAN'S DECISION TO RETIRE AT THE AGE OF 57 AMERICAN HOME'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOHN R STAFFORD WILL ASSUME THE POSITION OF PRESIDENT THE COMPANY ISN'T PLANNING TO SEARCH FOR A SUCCESSOR TO DR CANAVAN THE SPOKESMAN SAID DR CANAVAN SPENT MOST OF HIS 25YEAR CAREER AT AMERICAN HOME'S WYETH UNIT A PHARMACEUTICAL OPERATION 9311010134 931101 CHRYSLER MINIVAN REBATES HIGHLAND PARK MICH JUST A WEEK AFTER IT RAISED PRICES ON ITS MINIVANS 100 CHRYSLER CORP SAID IT WILL OFFER 500 REBATES ON THE POPULAR VEHICLES THROUGH YEAR'S END CHRYSLER SAID THE REBATE OFFER IS AN EXTENSION OF LAST YEAR'S FOURTHQUARTER MINIVAN REBATE OFFER CHRYSLER IS TRYING TO REDUCE ITS REBATES WHICH LAST QUARTER AVERAGED 775 A VEHICLE BUT REBATE PROGRAMS ARE A POWERFUL SALES TOOL AND ALL THE BIG THREE AUTO MAKERS RELY ON THEM TO BOOST SALES VOLUMES 9311010133 931101 GOODRICH PLANS TO SELL REST OF ITS GEON SHARES IN A PUBLIC OFFERING AKRON OHIO BF GOODRICH CO SAID IT PLANS A PUBLIC OFFERING TO SELL ITS REMAINING HALFINTEREST IN GEON CO A MAKER OF POLYVINYL CHLORIDE THAT IT SPUN OFF EARLIER THIS YEAR AT CURRENT PRICES GOODRICH'S 129 MILLION REMAINING GEON SHARES WOULD BE WORTH ABOUT 284 MILLION GOODRICH SAID IT WOULD USE PROCEEDS TO PURSUE ITS PREVIOUSLY STATED GOALS OF EXPANDING ITS AEROSPACE AND SPECIALTY CHEMICALS BUSINESSES GEON BASED IN INDEPENDENCE OHIO HAS SEEN A REBOUND IN ITS BUSINESS THIS YEAR IN ITS THIRD QUARTER THE COMPANY EARNED 55 MILLION OR 21 CENTS A SHARE ON SALES OF 2545 MILLION A YEAR EARLIER IT HAD A LOSS OF 66 MILLION ON SALES OF 2273 MILLION THE LOSS IS EQUAL TO A LOSS OF 25 CENTS A SHARE ON A PRO FORMA BASIS GOODRICH SAID THE OFFERING WOULD PROBABLY TAKE PLACE BY YEAR END AFTER THE SECURITIES AND EXCHANGE COMMISSION APPROVES A REGISTRATION STATEMENT THE COMPANY FILED ON FRIDAY IN THE INITIAL OFFERING IN APRIL GOODRICH SOLD 13 MILLION GEON SHARES AT 18 A SHARE 9311010132 931101 THE OUTLOOK IS IT JOBLESS GROWTH OR JUST SLOW GROWTH BY DAVID WESSEL WASHINGTON THE US ECONOMY OF THE EARLY 1990S HAS BEEN BRANDED THE JOBLESS RECOVERY FOR GOOD REASON THE ECONOMY HAS BEEN GROWING FOR 2 1/2 YEARS BUT 85 MILLION PEOPLE STILL CAN'T FIND WORK MANUFACTURERS EMPLOY 270000 FEWER THAN THEY DID A YEAR AGO THE CURRENT BUSINESS BUZZWORD RESTRUCTURING IS OFTEN A EUPHEMISM FOR LAYOFFS DESPITE A HIRING SPURT EARLIER THIS YEAR TOTAL PAYROLLS HAVE RISEN ONLY 17 IN THE PAST 30 MONTHS IN THE TYPICAL POSTWAR RECOVERY THEY ROSE 74 IN SUCH A SPAN PESSIMISTS SAY THE GREAT AMERICAN JOB MACHINE IS BROKEN DAMAGED BY UNFAIR FOREIGN COMPETITION UNWISE GOVERNMENT REGULATION OR SOME OTHER EVIL OPTIMISTS SAY AMERICAN BUSINESS HAS STOPPED TALKING ABOUT IMPROVING PRODUCTIVITY AND IS ACTUALLY ACHIEVING IT FINALLY USING COMPUTERS AND SOUND MANAGEMENT TECHNIQUES TO INCREASE OUTPUT PER HOUR WORKED CLINTON ADMINISTRATION ECONOMISTS PREFER A SIMPLER EXPLANATION THERE AREN'T VERY MANY JOBS PRIMARILY BECAUSE THERE HASN'T BEEN VERY MUCH ECONOMIC GROWTH IN THE PAST COUPLE OF YEARS MOST OF THE POOR EMPLOYMENT PERFORMANCE IS POOR GROWTH SAYS LARRY KATZ CHIEF ECONOMIST AT THE LABOR DEPARTMENT THEY'RE PROBABLY RIGHT THE ECONOMY HAS GROWN BY A TOTAL OF 6 OVER THE PAST 30 MONTHS FOLLOWING EARLIER RECESSIONS IT GREW THAT MUCH IN 11 MONTHS DID THAT MUCH GROWTH PRODUCE MORE JOBS IN THE PAST WHITE HOUSE ECONOMIST ALAN BLINDER LOOKED IT UP THE ANSWER NOT VERY MANY MORE JOBS IN RECOVERIES PAST A 6 INCREASE IN ECONOMIC OUTPUT LED TO A 22 INCREASE IN EMPLOYMENT IN THIS ONE IT HAS LED TO A 17 INCREASE THIS RECOVERY WAS PARTICULARLY SLOW AT THE BEGINNING WHERE YOU USUALLY GET BIG GAINS AND WE'VE NEVER MADE UP FOR THAT SAYS GEORGE PERRY A BROOKINGS INSTITUTION ECONOMIST WHO ALSO ARGUES THAT SLUGGISH GROWTH EXPLAINS MOST OF THE JOB DEARTH PEOPLE KEEP LOOKING AROUND FOR REASONS THAT JOBS AREN'T BEING CREATED EVERYTHING BECOMES THE SCAPEGOAT SLUGGISH GROWTH NOTWITHSTANDING AMERICA'S JOB MACHINE ISN'T OPERATING AS IT HAS IN THE PAST IT IS TOO SOON TO DRAW DEFINITIVE CONCLUSIONS AND THE PROPENSITY OF THE GOVERNMENT TO REVISE ITS ECONOMIC STATISTICS MAKES ARGUMENTS THAT RELY ON THEM SUSPECT BUT THE TEPID RECOVERY ISN'T THE ONLY REASON THAT THERE AREN'T MORE GOOD JOBS FOR ONE THING THERE IS MORE TO UNDERSTANDING THE ECONOMY THAN COUNTING JOBS PESSIMISTS SAY THE FRACTION OF WORKERS FORCED TO TAKE PARTTIME JOBS USUALLY RISES ABRUPTLY IN A RECESSION THEN FALLS ABRUPTLY IN A RECOVERY NOT THIS TIME ABOUT 55 OF ALL WORKERS OR 65 MILLION PEOPLE SAY THEY ARE UNHAPPILY WORKING PART TIME A FIGURE THAT HASN'T BUDGED IN TWO YEARS WHAT'S MORE 60 OF THE JOBS ADDED IN THE PAST YEAR ARE IN THREE INDUSTRIES HEALTH CARE RESTAURANTS AND BARS AND TEMPORARY HELP SOME OF THEM ARE GOOD JOBS BUT THE AVERAGE RESTAURANT JOB PAYS ONLY 533 AN HOUR TEMPORARY JOBS OFFER LITTLE SECURITY AND OFTEN NO HEALTH BENEFITS EVEN IF YOU HAVE A JOB WARNS LABOR SECRETARY ROBERT REICH YOUR CHANCE OF NOT HAVING THE JOB A YEAR OR TWO FROM NOW IS INCREASING AND THAT'S NOT JUST FOR BLUECOLLAR WORKERS THERE IS A GREATER DEGREE OF JOB INSECURITY THESE DAYS NO MATTER WHERE YOU ARE IN THE CORPORATION THAN WE HAVE SEEN AT ANY TIME IN THE POSTWORLD WAR II ERA OPTIMISTS SCAN THE SAME HEADLINES AND DISSECT THE SAME FIGURES LOOKING BEYOND TODAY'S PAIN THEY SEE HOPEFUL SIGNS THAT THE ECONOMY IS UNDERGOING CHANGES THAT WILL MAKE THE FUTURE MORE COMFORTABLE THE SLOW ECONOMY IS THE MAJOR REASON JOBS ARE SO SCARCE BUT THE OPTIMISTS ARE INTRIGUED BY THE OTHER REASON EMPLOYERS AREN'T HIRING BECAUSE THEY NOW CAN PRODUCE MORE WITHOUT ADDING MANY WORKERS THAT IS HARDLY GOOD NEWS FOR THE UNEMPLOYED BUT INCREASING PRODUCTIVITY IS CRUCIAL IF WAGES STAGNANT FOR A DECADE ARE TO BEGIN RISING AGAIN SOME ECONOMISTS DOUBT THERE'S MUCH TO THIS VIEW ROBERT GORDON OF NORTHWESTERN UNIVERSITY SEES THE SCARCITY OF JOBS AS A HANGOVER TO A BINGE OF OVERHIRING IN THE LATE 1980S BUT FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN IS A BELIEVER RESTRUCTURING AND INCREASING COMPUTERIZATION OF OUR ECONOMY ARE PROBABLY ADDING A COUPLE OF TENTHS OR SO OF A PERCENT TO OUR LONGTERM ANNUAL GROWTH RATE HE SAID RECENTLY THIS WOULD CUMULATE OVER THE YEARS AS A SIGNIFICANT ADDITION TO AMERICAN STANDARDS OF LIVING GEORGE KAHN AN ECONOMIST AT THE KANSAS CITY FED POSED THE QUESTION SHARPLY IN THE TITLE OF AN ESSAY SLUGGISH JOB GROWTH IS RISING PRODUCTIVITY OR AN ANEMIC RECOVERY TO BLAME AFTER WADING THROUGH THE NUMBERS HE REACHED A FIRM CONCLUSION BOTH EXPLANATIONS HAVE MERIT CLEARLY THE MAJOR REASON THERE AREN'T MORE JOBS IS THAT THE ECONOMY IS GROWING SO SLOWLY BUT SOMETHING ELSE IS GOING ON TOO AND THE FRUSTRATING TRUTH IS IT WON'T BE KNOWN HOW IMPORTANT THAT SOMETHING ELSE IS UNTIL THE ECONOMY REALLY GETS HUMMING 9311010131 931101 WHO'S NEWS CAPITAL CITIES/ABC INC CAPITAL CITIES/ABC INC NEW YORK GEORGE W BODENHEIMER 35 YEARS OLD WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT AFFILIATE SALES AND MARKETING AT ESPN INC THE SPORTSCASTING UNIT OF THE BROADCASTING AND PUBLISHING CONCERN MR BODENHEIMER HAD BEEN VICE PRESIDENT AFFILIATE SALES AND MARKETING 9311010130 931101 ENTERPRISE CLINTON PLAN MAY LEAD SOME TO FLOUT LAWS BY UDAYAN GUPTA AND JEFFREY A TANNENBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL HERE COMES THE CLINTON HEALTHCARE PLAN AND HERE COME THE SMALLBUSINESS SCOFFLAWS WITH SCHEMES TO EVADE IT HEALTHCARE EXPERTS SAY THE PROPOSAL WITH ITS MANDATE THAT EMPLOYERS PAY FOR WORKERS' HEALTHCARE COVERAGE COULD MAKE IT MORE PROFITABLE FOR A BUSINESS TO SKIRT THE LAW THAN TO ABIDE BY IT MANY SMALL BUSINESSES THAT PAY WORKERS OFF THE BOOKS FEEL THERE IS NO REASONABLE CHOICE BUT TO SKIRT THE MANDATE AND RISK GETTING CAUGHT FOR THEIR VIOLATIONS OF TAX AND EMPLOYMENT STATUTES THE CLINTON PLAN IS GOING TO RESULT IN MORE EMPLOYERS ASKING PEOPLE TO WORK OFF THE BOOKS SAYS IRWIN L KELLNER SENIOR VICE PRESIDENT AND CHIEF ECONOMIST OF CHEMICAL BANKING CORP NEW YORK INTUITION KIND OF TELLS YOU THAT THAT'S WHAT COMPANIES ARE GOING TO DO EXPERTS ALSO WORRY ABOUT OTHER FALLOUT FROM THE PLAN THAT A PARALLEL CLANDESTINE HEALTHCARE SYSTEM CATERING TO UNINSURED WORKERS FOR CASH COULD GROW AND THAT HEALTHCARE FRAUD COULD INCREASE HEAVEN KNOWS THE CREATIVE WAYS THAT COMPANIES WILL FIND TO GET AROUND THE LAW BUT THERE WILL BE MANY SAYS WILLIAM C DUNKELBERG BUSINESS DEAN AT TEMPLE UNIVERSITY AND CHIEF ECONOMIST OF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS A SMALLBUSINESS TRADE GROUP SOME BUSINESSES MAY RECLASSIFY EMPLOYEES AS INDEPENDENT CONTRACTORS ALREADY A COMMON TACTIC SO THAT THE WORKERS RATHER THAN THE EMPLOYER PAY FOR THEIR HEALTH CARE SAYS F THOMAS JUSTER ECONOMICS PROFESSOR AT THE UNIVERSITY OF MICHIGAN WHILE THE INTERNAL REVENUE SERVICE IS CRACKING DOWN ON SUCH ABUSE THE HEALTHREFORM BILL COULD GIVE THE IRS BROAD NEW AUTHORITY TO DETERMINE WHO IS AN INDEPENDENT CONTRACTOR MORE BUSINESSES ARE LIKELY TO TRY THE PLOY MANY BUSINESS OWNERS WHO REQUESTED ANONYMITY SAY THEY WOULD FLOUT ANY LAW MANDATING HEALTH COVERAGE WE'RE WORKING ON 3 TO 4 MARGINS AND CAN'T AFFORD TO INCREASE OUR EXPENSES SAYS THE OWNER OF A SMALL NEW YORK TRAVEL AGENCY WHO PLANS TO IGNORE ANY SUCH MANDATE THE AGENCY SAYS IT WILL EMPLOY PEOPLE OFF THE BOOKS HIRING ONLY THOSE WHO GET THEIR HEALTH COVERAGE THROUGH A SPOUSE'S EMPLOYER ECONOMISTS SAY FEDERAL TAX INCREASES THIS YEAR ARE EXPECTED TO DRIVE MORE BUSINESSES INTO THE SOCALLED UNDERGROUND ECONOMY WHERE COMPANIES EVADE TAXES AND OTHER OBLIGATIONS IF THE CLINTON HEALTH PLAN IS ENACTED SAYS HAROLD DANKNER A PARTNER WITH THE ACCOUNTING FIRM COOPERS & LYBRAND IN NEW YORK THESE BUSINESSES WILL FIND IT NECESSARY TO BECOME HEALTHPLAN SCOFFLAWS TO CONTINUE TO HIDE THEIR VIOLATIONS OF TAX AND EMPLOYMENT LAWS THAT'S BECAUSE THE PLAN WOULD CREATE A MASSIVE AUDIT TRAIL MR DANKNER SAYS AGENCIES COULD EASILY USE THE INFORMATION TO CHECK FOR TAX CHEATS UNDOCUMENTED FOREIGN WORKERS AND THE LIKE HE SAYS FOR COMPANIES THAT PAY WORKERS OFF THE BOOKS THERE'S NOTHING IN THE PLAN TO ENTICE THEM TO COME CLEAN SAYS ALAN NADEL A PARTNER WITH THE ACCOUNTING FIRM ARTHUR ANDERSEN & CO IN NEW YORK WHY SHOULD AN EMPLOYER PROVIDE HEALTH INSURANCE FOR SOMEONE IF THAT MEANS TAX PENALTIES MORE PAPERWORK AND ULTIMATELY LESS PROFIT AND EVEN THOUGH CLINTON'S PLAN PROMISES SWIFT AND STIFF PENALTIES FOR EMPLOYERS WHO VIOLATE THE MANDATE IT PROPOSES CIVIL FINES OF 5000 OR THREE TIMES THE AMOUNT OWED WHICHEVER IS GREATER THE CLINTON PLAN MIGHT ALSO PUSH MORE BUSINESSES INTO A PARALLEL HEALTHCARE SYSTEM THAT HAS SPRUNG UP IN MANY CITIES SOME EMPLOYERS SAY THEY PROVIDE HEALTH BENEFITS THROUGH THIS INFORMAL HEALTHCARE ECONOMY IN WHICH DOCTORS AND CLINICS WORK FOR CASH FROM SMALL FIRMS EMPLOYERS ARRANGE WITH A DOCTOR OR CLINIC FOR EMPLOYEES TO RECEIVE LOWCOST SIMPLE CARE THEY PAY A RETAINER THAT CAN RANGE FROM HUNDREDS TO THOUSANDS OF DOLLARS DEPENDING ON THE NUMBER OF EMPLOYEES WORKERS ALSO MAY BE CHARGED A SMALL PERVISIT FEE IN THE EVENT OF SEVERE ILLNESSES OR ACCIDENTS EMPLOYEES INSTEAD GO TO A HOSPITAL EMERGENCY UNIT OR TO PRIVATE HOSPITALS AND CLINICS WHERE THEIR INFORMAL CAREGIVER MIGHT HAVE A BUSINESS CONNECTION SEVERAL EAST ASIAN RESTAURANTS IN NEW YORK'S BOROUGH OF MANHATTAN SEND THEIR WAITERS AND DISHWASHERS WHO ARE PAID OFF THE BOOKS TO A LOWER EAST SIDE DOCTOR WHO IS PAID CASH BY THE RESTAURANTS TO TREAT MINOR AILMENTS SAYS AN INVESTOR IN SOME OF THE RESTAURANTS ONE MIDWESTERN FASTFOOD CHAIN OPERATOR SAYS HE PUTS ASIDE SEVERAL HUNDRED DOLLARS WEEKLY FOR MEDICAL TREATMENT OF ONTHEJOB ACCIDENTS IT'S CHEAPER THAN BUYING A FULLFLEDGED INSURANCE POLICY FOR ALL MY WORKERS HE SAYS SUCH ARRANGEMENTS WILL BECOME MORE COMMON PREDICTS ONE NEW YORK DENTIST HE IS ANTICIPATING A SHARP CUT IN REIMBURSEMENTS FOR SERVICES UNDER THE PLAN I'LL HAVE TO TAKE ON CASH PATIENTS TO KEEP GOING SAYS THE DENTIST HE TREATS MANY OFFTHEBOOKS WORKERS WHOSE EMPLOYERS PAY CASH FOR THE SERVICES WHILE MANY UNDERGROUND ENTERPRISES WON'T COVER THEIR WORKERS' HEALTHCARE COSTS OTHER BUSINESSES WITH THE APPEARANCE OF ABOVEGROUND LEGITIMACY ONLY WILL PRETEND TO PAY ENTREPRENEURS SAY MARILYN THORNTON COOWNER OF COMPLETE MOVERS INC A NEW YORK MOVING SERVICE SAYS SHE EXPECTS MANY SMALL MOVING COMPANIES TO SIGN UP FOR EMPLOYEE INSURANCE COVERAGE BUT PAY ONLY PART OF THE PREMIUM SO THAT EMPLOYEES ARE COVERED AND THE LEGAL REQUIREMENT FULFILLED SHE SAYS THAT WHEN THE FULL BILL COMES DUE SOMETIMES A YEAR OR SO LATER THE COMPANIES WILL APPEAR TO CLOSE BUT IN FACT THEY WILL KEEP REAPPEARING UNDER DIFFERENT NAMES SHE PREDICTS A PLOY USED BY COMPANIES TO AVOID PAYING BILLS WORKERS MAY GET COVERAGE BUT THE GOVERNMENT OR THE HEALTH SYSTEM AND NOT THE EMPLOYERS WOULD PAY THE BILLS THERE WILL BE NEW CORPORATIONS EACH YEAR AND THE LEFTOVER BILLS WILL END UP IN BANKRUPTCY COURT SHE SAYS 9311010129 931101 COMMODITIES ESTIMATE OF OPEC OUTPUT FOR OCTOBER IS DUE THIS WEEK SETTING TONE FOR PETROLEUM PRICES BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL THE FOCUS OF THE OIL MARKET THIS WEEK IS ON THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ESTIMATES OF OPEC'S OIL OUTPUT FOR OCTOBER ARE DUE OUT DURING THE WEEK THESE WILL BE CAPPED FRIDAY BY THE CLOSELY WATCHED OIL SUPPLY AND DEMAND REPORT FROM THE INTERNATIONAL ENERGY AGENCY THE ASSESSMENTS BY THE IEA LEADING OIL INDUSTRY PUBLICATIONS AND OTHER MONITORS OF OPEC'S PRODUCTION ARE CRUCIAL TO THE DIRECTION OF PETROLEUM PRICES THEY WILL HELP TO CONFIRM WHETHER THE OIL EXPORTERS ARE ADHERING REASONABLY CLOSE TO THE SIXMONTH OUTPUT CEILING OF 245 MILLION BARRELS A DAY THEY SET IN LATE SEPTEMBER TO TRY TO CURB OVERPRODUCTION AS AN EXAMPLE OF THE IMPORTANCE OF THE PRODUCTION ESTIMATES PRICES BEGAN FALLING FRIDAY AS REPORTS CIRCULATED IN THE INDUSTRY THAT PETROLEUM INTELLIGENCE WEEKLY WILL ESTIMATE OPEC'S OCTOBER OUTPUT AT NEARLY 25 MILLION BARRELS A DAY ONCE THE PRICE DECLINE WAS TRIGGERED FURTHER WAVES OF SELLING MUCH OF IT TECHNICALLY DRIVEN BATTERED THE ALREADYBEARISH MARKET TRADERS SAID WHATEVER THE REASON FOR THE DROP PRICES FELL FRIDAY TO SOME OF THE LOWEST LEVELS OF THE YEAR ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR DECEMBER DELIVERY SETTLED 45 CENTS LOWER AT 1692 A BARREL BRENTBLEND CRUDE PRICES DROPPED NEARLY AS MUCH ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE AND FUEL FUTURES WERE DOWN BY ONE CENT OR MORE A GALLON IN BOTH NEW YORK AND LONDON SOME ANALYSTS SAID THE PRICE DECLINES MAY NOT BE OVER YET IF PIW'S OPEC NUMBERS PROVE TO BE CORRECT WE WILL SEE A FURTHER SLIDE SAID SHANNON BURCHETT VICE PRESIDENT OF CHASE MANHATTAN BANK'S GLOBAL RISK MANAGEMENT GROUP MR BURCHETT AN ENERGY FUTURES EXPERT SEES 1635 A BARREL AS THE NEXT MAJOR SUPPORT LEVEL FOR CRUDE TRADED ON THE NEW YORK MERCANTILE EXCHANGE BUT THE PIW PRODUCTION FIGURE WHICH IS EXPECTED TO BE PUBLISHED TODAY MAY PROVE HIGHER THAN OTHER ESTIMATES OVER THE NEXT SEVERAL DAYS FROM OTHER MONITORS OF OPEC'S OUTPUT THAT IS BECAUSE THE COUNTING OF OPEC BARRELS IS HARDLY A SCIENCE OPEC HAS NO WAY TO CONFIRM WHETHER ITS 12 MEMBER NATIONS ARE REPORTING THEIR MONTHLY PRODUCTION FIGURES ACCURATELY ALTHOUGH THE ESTIMATING BY OTHERS IS BASED ON A COMBINATION OF GOVERNMENT REPORTS TANKER TRACKING AND INFORMATION FROM OIL COMPANIES OPERATING IN THE COUNTRIES MUCH OF IT IS GUESSWORK SOME OF THE CURRENT OVERPRODUCTION FOR EXAMPLE IS SAID TO BE COMING FROM IRAQ BUT NO ONE OUTSIDE IRAQ KNOWS HOW MUCH IRAQI OIL IS BEING PRODUCED BECAUSE IT IS BANNED FROM THE WORLD MARKET BY THE UNITED NATIONS AS A RESULT THE ESTIMATES OF OPEC PRODUCTION FOR OCTOBER ARE LIKELY TO VARY WIDELY STILL FEW OUTSIDE OPEC ARE LIKELY TO ARGUE THAT OCTOBER OUTPUT WAS KEPT WITHIN THE FOURTHQUARTER PRODUCTION CEILING OF 245 MILLION BARRELS A DAY JUDGING FROM VERY PRELIMINARY ESTIMATES OVER THE PAST WEEK AND FROM OTHER EVIDENCE IT CAN BE ASSUMED THAT THE RANGE OF ASSESSMENTS FOR OCTOBER PRODUCTION BY MONITORS OF OPEC WILL BE BETWEEN 246 MILLION AND 25 MILLION BARRELS A DAY THE AVERAGE SHOULD BE SLIGHTLY BELOW OPEC'S SEPTEMBER PRODUCTION OF 247 MILLION BARRELS A DAY THAT IS WITHIN THE PREDICTED RANGE OF DEMAND FOR OPEC OIL WHICH USUALLY RISES SEASONALLY THIS TIME OF THE YEAR AND SOME ANALYSTS SAID THAT THE PROBABILITY OPEC WASN'T ABLE TO REDUCE PRODUCTION TO THE TARGETED LEVEL IN THE FIRST MONTH FOR THE NEW CEILING IS FACTORED INTO OIL PRICES THE MARKET ALREADY HAS ABSORBED THE FACT THAT OPEC'S OUTPUT EXCEEDED ITS CEILING AND THERE SHOULDN'T BE ANY FURTHER IMPACT UNLESS THE OCTOBER NUMBER TURNS OUT TO BE ABSURDLY NEGATIVE SAID SHAHROKH NIKKHAH LONDONBASED EXECUTIVE VICE PRESIDENT OF REFCO INC INDEED MR NIKKHAH SEES THIS AS THE BEST BUYING OPPORTUNITY IN FOUR MONTHS HE LOOKS FOR PRICES TO RISE OVER THE REMAINDER OF THE FOURTH QUARTER WITH THE US BENCHMARK CRUDE REACHING 2050 TO 21 A BARREL BEFORE THE YEAR END 9311010128 931101 WHO'S NEWS CDI CORP'S MODERN TAPS DEDEURWAERDER FOR POST OF PRESIDENT WARREN MICH JOSE J DEDEURWAERDER THE FORMER AUTOMOBILEINDUSTRY EXECUTIVE WHO ALSO HEADED A BELGIAN BREWERY IS RETURNING TO THE AUTO INDUSTRY MR DEDEURWAERDER TODAY IS TO BE NAMED PRESIDENT OF CDI CORP'S MODERN ENGINEERING AN AUTOMOTIVE ENGINEERING CONCERN MR DEDEURWAERDER 60 YEARS OLD IS FORMER PRESIDENT OF AMERICAN MOTORS CORP AND FORMER EXECUTIVE VICE PRESIDENT OF REGIE NATIONALE DES USINES RENAULT HE ALSO WAS A KEY PARTICIPANT IN THE SALE OF AMC TO CHRYSLER CORP AFTER LEAVING RENAULT HE WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF INTERBREW NV IN HIS NATIVE BELGIUM MR DEDEURWAERDER SUCCEEDS RALPH MILLER WHO LEFT MODERN LAST YEAR CDI IS A TECHNICALSERVICES AND MANAGEMENTRECRUITMENT COMPANY 9311010127 931101 WHO'S NEWS TUBOSCOPE VETCO INTERNATIONAL INC TUBOSCOPE VETCO INTERNATIONAL INC HOUSTON WILLIAM V LARKIN JR 40 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER AND A DIRECTOR AND CONTINUES AS PRESIDENT OF THIS PETROLEUMINDUSTRY SUPPLY COMPANY MR LARKIN HAD BEEN CHIEF OPERATING OFFICER AS CHIEF EXECUTIVE OFFICER HE SUCCEEDS MARTIN R REID 50 WHO WILL CONTINUE AS CHAIRMAN AND FILLS ONE OF TWO VACANCIES ON THE COMPANY'S NINEMEMBER BOARD RONALD L KOONS 46 WAS PROMOTED TO EXECUTIVE VICE PRESIDENT FROM SENIOR VICE PRESIDENT AND CONTINUES AS CHIEF FINANCIAL OFFICER 9311010126 931101 PEPPERAND SALT BUT IT SURE HELPS MY MACHISMO AND I SUFFER FROM OVERBYTE FLU SHOT AGUEPUNCTURE 9311010125 931101 WHO'S NEWS BOX ENERGY CORP BOX ENERGY CORP DALLAS THOMAS D BOX 38 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THIS OIL AND GAS EXPLORATION AND PRODUCTION COMPANY AND WILL RETAIN HIS POST AS ITS PRESIDENT HE SUCCEEDS HIS FATHER CLOYCE K BOX WHO DIED OCT 24 AT THE AGE OF 70 THE LATE MR BOX'S 57 STAKE OF THE COMPANY'S CLASS A VOTING STOCK HAS BEEN DIVIDED AMONG HIS FOUR SONS WHO MUST VOTE AS A CLASS 9311010124 931101 CREDIT RATINGS PROVIDENT LIFE CAPITAL CORP CHATTANOOGA TENN MOODY'S INVESTORS SERVICE INC SAID IT DOWNGRADED THE SENIOR DEBT RATING OF PROVIDENT LIFE CAPITAL TO A2 FROM A1 THE RATINGS SERVICE ALSO DOWNGRADED THE DEPOSITORY SHARES OF PROVIDENT LIFE & ACCIDENT INSURANCE CO OF AMERICA TO A3 FROM A2 MOODY'S SAID THE RATING CHANGE REFLECTS CONCERNS ABOUT THE EXTENT OF LOSSES FROM THE DISABILITY INCOME BUSINESS THE RATINGS CHANGES AFFECT 350 MILLION OF SECURITIES MOODY'S SAID COMPANY OFFICIALS COULDN'T BE REACHED FOR COMMENT SCECORP ROSEMEAD CALIF MOODY'S INVESTORS SERVICE INC SAID IT PLACED THE CREDIT RATINGS OF THIS HOLDING COMPANY'S SOUTHERN CALIFORNIA EDISON CO UTILITY UNIT UNDER REVIEW FOR POSSIBLE DOWNGRADE BECAUSE OF HEIGHTENED CONCERNS RELATED TO THE SLUGGISH ECONOMY COMPETITIVE POSITION AND AGGRESSIVE USE OF LEVERAGE AND PURCHASED POWER IN THE WAKE OF A RECOMMENDATION BY AN ADMINISTRATIVE LAW JUDGE MOODY'S ACTION AFFECTS THE UTILITY'S FIRSTMORTGAGE BONDS RATED DOUBLEA3 SHELF REGISTRATION OF FIRSTMORTGAGE BONDS RATED PDOUBLEA3 NOTES RATED SINGLEA1 SHELF REGISTRATION OF NOTES RATED PSINGLEA1 SECURED POLLUTIONCONTROL AND INDUSTRIALDEVELOPMENT BONDS RATED DOUBLEA3 UNSECURED POLLUTIONCONTROL AND INDUSTRIALDEVELOPMENT BONDS RATED SINGLEA1 PREFERRED STOCK RATED DOUBLEA3 AND SHELF REGISTRATION OF PREFERRED STOCK RATED PDOUBLEA3 9311010123 931101 WHARF CABLE MAKES DEBUT IN HONG KONG BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG WHARF CABLE MADE ITS LONGAWAITED DEBUT IN HONG KONG BUT A DISAGREEMENT BETWEEN THE CABLETV OPERATOR AND ITS MAIN CHANNEL PROVIDER MEANT THE SERVICE WAS SEVEN CHANNELS SHORT OF ITS ORIGINAL TARGET WHARF CABLE A SUBSIDIARY OF WHARF HOLDINGS LTD ON SUNDAY LAUNCHED THE FIRST PHASE OF ITS CABLE SYSTEM WITH SEVEN CANTONESELANGUAGE CHANNELS AND ONE ENGLISHLANGUAGE NEWS CHANNEL TRANSMITTED TO ABOUT 1000 SUBSCRIBERS WHARF HOPES TO SIGN UP 300000 CUSTOMERS BY THE END OF 1994 AND 850000 BY THE END OF 1999 ALTOGETHER THE COMPANY PROJECTS ABOUT 15 MILLION POTENTIAL SUBSCRIBERS FOR ITS SERVICES IN HONG KONG REGIONAL SATELLITE BROADCASTER STAR TV WHICH IS TO PROVIDE WHARF WITH THREE ADDITIONAL FREE CHANNELS AND FOUR PAY CHANNELS WASN'T ABLE TO BEGIN BROADCASTING AS SCHEDULED OVER THE WHARF SYSTEM ON SUNDAY UNDER THE TERMS OF ITS LICENSE WHARF IS REQUIRED TO CARRY A SEVENCHANNEL PACKAGE PROVIDED BY STAR THE TWO COMPANIES SIGNED A MEMORANDUM OF UNDERSTANDING IN JUNE BUT WERE UNABLE TO REACH A FINAL AGREEMENT IN TIME FOR THE LAUNCH ANALYSTS SAID A LENGTHY CONFLICT BETWEEN THE TWO PARTIES COULD HARM WHARF'S ABILITY TO EXPAND ITS PROGRAM OFFERINGS UNDER THE MEMORANDUM WHARF AGREED TO MAKE STAR THE EXCLUSIVE SUPPLIER OF INTERNATIONAL CHANNELS IN ADDITION TO THE SEVENCHANNEL PACKAGE WHARF IS REQUIRED TO CARRY PEOPLE CLOSE TO THE NEGOTIATIONS SAID THE TWO COMPANIES DIFFER OVER THE INTERPRETATION OF THAT CLAUSE AMONG OTHER ISSUES WHARF EXECUTIVES SAID NEGOTIATIONS HAVE BEEN COMPLICATED BY A CHANGE IN MANAGEMENT AT STAR IN JULY STAR'S FOUNDERS HUTCHISON WHAMPOA LTD AND THE FAMILY OF BILLIONAIRE LI KASHING SOLD A CONTROLLING INTEREST IN THE SATELLITE BROADCASTER TO RUPERT MURDOCH'S NEWS CORP ALSO UNDER THE MEMORANDUM WHARF AGREED TO PURCHASE FORTRESS SATELLITE SERVICES WHICH SUPPLIES AND INSTALLS RECEPTION EQUIPMENT FROM HUTCHISON WHAMPOA WHARF CONCLUDED ITS PURCHASE OF FORTRESS SATELLITE SERVICES ON SATURDAY THE PRICE WASN'T DISCLOSED WHARF HAS EARMARKED HK5 BILLION US6469 MILLION FOR ITS CABLE PROJECT IT EXPECTS TO RECOVER ITS INITIAL INVESTMENT BY 1999 WHARF CABLE'S PROGRAM OFFERINGS INCLUDE A CHILDREN'S CHANNEL A SPORTS CHANNEL A 24HOUR NEWS CHANNEL A YOUTH MUSIC CHANNEL AN ENTERTAINMENT CHANNEL A MOVIE CHANNEL AND A PREVIEW CHANNEL THE EIGHTH CHANNEL IS A LOCALLY MIXED EDITION OF TURNER BROADCASTING SYSTEM INC'S CNN INTERNATIONAL WHARF'S SPORTS CHANNEL IS PRODUCED IN CONJUNCTION WITH ESPN INC WHICH IS 80OWNED BY US MEDIA GIANT CAPITAL CITIES/ABC 9311010121 931101 AMERICA CALLING EUROPE'S PHONE TURF OFFERS A BEACHHEAD FOR YANKEE INGENUITY AS PRIVATIZATION ADVANCES US CONCERNS USE SAVVY TECHNOLOGY TO WIN STAKE MICHAEL WALTON'S PC PLOYS BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL MAAS MECHELEN BELGIUM THE YANKS ARE COMING AND EUROPEAN TELEPHONE CONSUMERS SEEM TO BE GLAD TO SEE THEM AS EUROPE BEGINS DISMANTLING ITS STATERUN MONOPOLIES THE OLD EUROPEAN ORDER IN TELECOMMUNICATIONS IS PASSING A HISTORIC DEVELOPMENT LIKE THE BREAKUP OF AMERICAN TELEPHONE & TELEGRAPH CO INTO THE BREACH ARE RUSHING AMERICAN TELECOMMUNICATIONS GIANTS INCLUDING AT&T ITSELF AND IMPROBABLY SUCCESSFUL AMERICAN ENTREPRENEURS LIKE MICHAEL WALTON TO THOSE WITH THE TENACITY TECHNOLOGY AND TIMING THE SPOILS OF THIS INVASION PROMISE TO BE GENEROUS CONSIDER MR WALTON'S EUROPEAN TELECOM INC A BIGSOUNDING COMPANY WHOSE OPERATION IS SHOEHORNED INTO A MODEST HOUSE ON PRINCES LANE HERE NEVER MIND THAT THE COMPANY HAS JUST THREE EMPLOYEES 50000 WORTH OF EQUIPMENT AND TWO NOSY DOGS TO GREET VISITORS EXPLOITING A CLEVER ANGLE AND OFFTHESHELF PERSONALCOMPUTER TECHNOLOGY EUROPEAN TELECOM IS TAKING BUSINESS AWAY FROM THE STATE PHONE COMPANY HERE AS IN MOST EUROPEAN COUNTRIES USSTYLE TELEPHONE DISCOUNTS ARE RARE MR WALTON IMPORTS THEM SO TO SPEAK BY ALLOWING HIS BELGIAN CUSTOMERS TO DIAL THEIR INTERNATIONAL CALLS BY REMOTECONTROL OUT OF CALIFORNIA USING AMERICAN DISCOUNT CARRIERS THEY THUS AVOID STEEP BELGIAN RATES ENTIRELY SAVING AS MUCH AS 33 ON CALLS SURPRISINGLY IT WORKS WE ARE VERY PLEASED WITH THE SERVICE SAYS EDWIN DESMYRTER A MANAGER AT PIONEER ELECTRONIC CORP'S MAIN OFFICE IN EUROPE ONE OF ABOUT 200 EUROPEAN TELECOM CLIENTS IN BELGIUM AND THE NETHERLANDS LESS PLEASED IS BELGACOM THE STATE PHONE COMPANY THOUGH IT DOESN'T CONTEST ITS TINY RIVAL'S LEGALITY AND MR WALTON A FORMER CALIFORNIAN HAS BIG PLANS IT'S LIKE WHEN SPRINT OR MCI FIRST STARTED IN THE US HE SAYS ANYBODY CAN DO IT IN FACT ANYBODY IS DOING IT MR WALTON'S TALE IS REMARKABLE ONLY IN THAT HE IS PLAYING DAVID TO BELGIUM'S TELEPHONE GOLIATH BUT HIS BASIC IDEA OF CHALLENGING EUROPE'S PHONE GIANTS ON THEIR HOME TURF IS SUDDENLY TRENDY AMONG US TELECOMMUNICATIONS COMPANIES IN JUST THE PAST YEAR AT&T HAS ANNOUNCED PLANS FOR A 350 MILLION COMMUNICATIONS NETWORK AROUND EUROPE NYNEX CORP PLANS TO INVEST 25 BILLION IN BRITAIN THROUGH 1997 MCI COMMUNICATIONS INC IS FORMING A PARTNERSHIP WITH BRITISH TELECOMMUNICATIONS PLC U S WEST INC IS BUILDING MOBILEPHONE NETWORKS FROM THE URALS OF RUSSIA TO THE CHILTERNS OF ENGLAND EUROPE IS THE BEST OPPORTUNITY IN THE WORLD RIGHT NOW SAYS MARTIN VARSAVSKY CHIEF EXECUTIVE OF VIA USA LTD A NEW YORKBASED COMPANY ASSEMBLING A 51 MILLION NETWORK TO CARRY LONGDISTANCE BUSINESS CALLS AROUND EUROPE I THINK THE EUROPEANS ARE EAGER TO GET BETTER TELEPHONE SERVICES THEY'RE EXTREMELY QUICK TO TAKE ON INNOVATIONS AND THEY HAVE THE PURCHASING POWER HE SAYS THUS US COMPANIES TOUGHENED BY COMPETITIVE BATTLES AT HOME AND COMMANDING STATEOFTHEART SOFTWARE AND MARKET SAVVY ARE POISED TO CLEAN UP THERE'S THIS INCREDIBLE PENTUP DEMAND FOR TELEPHONE SERVICES ADDS MR VARSAVSKY INDEED FOR A CENTURY EUROPE HAS BEEN TELECOMMUNICATIONS' DARK FORTRESS EASTERN EUROPE WAS CLOSED TIGHT AGAINST FOREIGNERS WHILE MOST WESTERN EUROPEAN NATIONS CEDED A LEGAL TELECOMMUNICATIONS MONOPOLY TO AN OMNIPOTENT GOVERNMENT AGENCY THESE MONOPOLIES HAVE KEPT LOCAL CALLS CHEAP TO PLEASE VOTERS AND LONGDISTANCE RATES EXPENSIVE TO COMPENSATE AND UNTIL RECENTLY THEY KEPT COMPETITORS FOREIGN OR DOMESTIC AT BAY THE FIRST CRACK CAME IN BRITAIN IN 1984 WHEN THE PROBUSINESS THATCHER GOVERNMENT ABOLISHED BRITISH TELECOM'S MONOPOLY AND MADE IT A PRIVATE COMPANY NOW THE NETHERLANDS DENMARK PORTUGAL AND HUNGARY ARE SCHEDULING SIMILAR PRIVATIZATIONS BY 1996 THE GERMAN GOVERNMENT IS PUSHING PRIVATIZATION AS WELL ALL OF THESE MOVES COULD COLLECTIVELY RAISE ABOUT 44 BILLION FOR THE GOVERNMENTS INVOLVED FREETRADERS AT THE EUROPEAN COMMUNITY COMMISSION GOT INTO THE ACT TOO IN 1987 THEY LAUNCHED A CAMPAIGN FOR MARKET LIBERALIZATION THAT CULMINATED LAST YEAR WITH AN ORDER TO ABOLISH ALL REMAINING EC PHONESERVICE MONOPOLIES BY 1998 AND IN THE EAST THE PROJECTED 94 BILLION IT WILL COST TO MODERNIZE THE POSTCOMMUNIST PHONE SYSTEM HAS SUDDENLY MADE FOREIGN CAPITAL AND COMPANIES WELCOME NOBODY EXPECTS THIS FREEMARKET REVOLUTION TO BE QUICK OR EASY TODAY LESS THAN ONETHIRD OF THE WESTERN EUROPEAN MARKET IS LEGALLY OPEN TO COMPETITION AND STATE COMPANIES STILL DOMINATE EVEN THAT SMALL PORTION BUT A NEW INDUSTRY PSYCHOLOGY IS SPREADING WHERE ONCE ALL WAS FORBIDDEN IN TELECOMMUNICATIONS UNLESS EXPRESSLY ALLOWED NOW MORE AND MORE THINGS ARE ALLOWED UNLESS EXPRESSLY FORBIDDEN THE EUROPEAN MARKET IS CLEARLY ON AN IRREVOCABLE PATH TOWARDS LIBERALIZATION SAYS JOHN FOSTER PRESIDENT OF AT&T'S EUROPEAN COMMUNICATIONSSERVICES DIVISION PROFITS WON'T COME QUICKLY HE ADDS BUT RETURNS OVER TIME WILL BE SIGNIFICANT FAITH LIKE THAT KEEPS MR WALTON GOING AT EUROPEAN TELECOM AFTER A YEAR OF OPERATIONS HIS COMPANY IS BILLING AT LEAST 100000 A MONTH BUT ISN'T YET MAKING ENOUGH PROFIT TO PAY HIM OR HIS TWO AMERICAN PARTNERS A SALARY AT 46 YEARS OLD THE MUSTACHIOED MR WALTON IS UNDAUNTED THE SON OF AN ENGINEER AND SMALLTIME TEXAS INVENTOR MR WALTON WAS ALSO BITTEN BY THE ENGINEERING BUG BUT HE QUIT TEXAS A&M'S MECHANICAL ENGINEERING PROGRAM GOT CAUGHT SHORT BY RISING INTEREST RATES WHILE BUILDING HOUSES IN THE SAN FRANCISCO AREA AND EVENTUALLY WASHED UP IN AMSTERDAM IN SEARCH OF A FRESH START A MAN WITH A BROAD ANTIAUTHORITY STREAK HE CAN'T STAND ANYONE TELLING HIM HE CAN'T DO SOMETHING SAYS HIS ENGLISH WIFE JANE IN EUROPE MR WALTON QUICKLY FOUND A WINDMILL TO TILT AT THE LOCAL PHONE COMPANY IT CHARGED AT LEAST 40 MORE FOR INTERNATIONAL CALLS THAN MR WALTON HAD PAID IN THE US SO HE PONDERED WHY COULDN'T HE BYPASS THE LOCAL PHONE COMPANY ENTIRELY WHAT IF EVERY TIME HE WANTED TO TALK TO THE STATES HE COULD SOMEHOW SIGNAL SOMEONE THERE TO CALL HIM BACK ON THE CHEAP AMERICAN RATES FOR MR WALTON WITH NO TECHNICAL KNOWLEDGE OF HOW PHONE SYSTEMS WORK MOVING BEYOND A CONCEPTUAL STAGE WAS DIFFICULT HIS CAPITAL WAS ALSO MODEST ABOUT 200000 FROM A LUCKY DABBLE IN PROPERTY SPECULATION SEARCHING FOR ANSWERS MR WALTON GOT ON THE PHONE TO SOME BIG US TELEPHONE COMPANIES PEPPERING THEIR ENGINEERS WITH A BARRAGE OF TECHNICAL QUESTIONS AND RUNNING UP BILLS OF 2500 A MONTH I WOULD HAVE BEEN MY OWN BEST CUSTOMER HE SAYS WITH THE HELP OF AN OUTOFWORK DUTCH COMPUTERGAME PROGRAMMER HE LABORIOUSLY TAUGHT HIMSELF TO PROGRAM COMPUTERS HE DID HIS OWN LEGAL RESEARCH ASKING LOCAL TELEPHONEEQUIPMENT SALESMEN HOW THEIR PRODUCTS COULD AND COULDN'T BE USED GRADUALLY A SURPRISING FACT EMERGED TO MAKE HIS CALLBACK CONCEPT WORK ALL HE NEEDED WAS OFFTHESHELF ELECTRONICS AVAILABLE AT ANY BIG COMPUTER STORE SO HE BEGAN ASSEMBLING PIECES A HALFDOZEN BUDGET PCS AND SOME SPECIALIZED ATTACHMENTS TO LET THE PCS TRANSFER PHONE CALLS MR WALTON'S REAL CHALLENGE WAS IN PROGRAMMING HIS SYSTEM TO MAKE IT WORK LIKE A PROFESSIONAL EXCHANGE AND NOT A MINISWITCHBOARD FOUND SAY IN ANY US REALTY OFFICE SO HE SCRIMPED AND SWEATED MOVING FROM THE NETHERLANDS TO A LOWRENT HOUSE IN THE REMOTE REACHES OF BELGIUM WHERE TAX RATES ARE LOWER HE FILLED THE SPARE BEDROOM WITH HIS ELECTRONIC TOYS AND WENT TO WORK SEVEN DAYS A WEEK BY EARLY 1992 HE HAD FINISHED HIS PROGRAMMING AND ENLISTED TWO PARTNERS TO GET THE BUSINESS GOING CHARLES DEHONT A FORMER INTEL CORP MANAGER AND STEVEN SORRICK A RETIRED PACIFIC TELESIS GROUP STRATEGIST MR WALTON'S SYSTEM WOULD MAKE RUBE GOLDBERG PROUD IT IS CONSTANTLY BEING MODIFIED OR TWEAKED AND IN FACT IT ISN'T THE FIRST OR ONLY SYSTEM LIKE IT IN EUROPE ALONG WITH EUROPEAN TELECOM A DOZEN SMALL COMPANIES NOW OFFER THESE CALLBACK SERVICES NONETHELESS THE TECHNICAL GYMNASTICS OF MR WALTON'S SYSTEM ARE IMPRESSIVE WHEN A EUROPEAN TELECOM CUSTOMER IN BELGIUM WANTS TO CALL ABROAD HE DIALS NORMALLY A PHONE ATTACHMENT INTERCEPTS THE CALL AND REROUTES IT TO AN OFFICE NEAR BRUSSELS A SOUPEDUP PC ANSWERS PUTS THE CALL ON HOLD AND DIALS ON A SECOND LINE TO WALNUT CREEK CALIF THERE ANOTHER PC HEARS THE RING BUT DOESN'T ANSWER THUS AVOIDING ANY CHARGE INSTEAD IT REDIALS THE BRUSSELS OFFICE USING LINES FROM A CUTRATE US CARRIER THE SYSTEM IS PROGRAMMED TO PICK AND CHOOSE AMONG MCI SPRINT AND OTHERS DEPENDING ON WHICH HAS THE BEST DEAL AT THAT INSTANT NEXT THE BRUSSELS COMPUTER ANSWERS AND REPEATS WHATEVER NUMBER BE IT IN TOLEDO OR TOKYO THE CUSTOMER WANTED THE WALNUT CREEK PC DIALS THE NUMBER ON ANOTHER USCARRIER LINE FINALLY THE PCS PATCH ALL LINES TOGETHER IN ONE GLOBESPANNING CONFERENCE CALL ALL THIS HAPPENS IN ABOUT 40 SECONDS CUSTOMERS LIKE IT PIONEER'S BELGIAN OFFICE CUT ITS BILL BY 32 FOR CALLS TO COUNTRIES OUTSIDE EUROPE BUT THE ATTITUDE OF BELGACOM THE STATE PHONE COMPANY IS A KIND OF HARMLESS NEGLECT OF COURSE THEY ARE ANNOYING TO US BUT WE CERTAINLY AREN'T GOING TO TAKE THEM TO COURT SAYS A SPOKESMAN BESIDES THERE ARE BIGGER FISH TO FRY COLLECTIVELY ALL THE CALLBACK SERVICES IN EUROPE DON'T AMOUNT TO MORE THAN A FEW DAYS' REVENUE AT A COMPANY LIKE BELGACOM BUT AT&T THAT'S A DIFFERENT THREAT EARLIER THIS YEAR IT RATTLED ALL THE EUROPEAN PHONE COMPANIES BY ANNOUNCING PLANS TO SPEND UP TO 350 MILLION OVER FIVE YEARS ON AN EIGHT TO 11COUNTRY NETWORK CARRYING BUSINESS COMMUNICATIONS THROUGHOUT EUROPE THE PLAN PART OF A GLOBAL SERVICE IT CALLS WORLDSOURCE THREATENS TO STICK A FIBEROPTIC SIPHON INTO THE PROFITABLE HEART OF THE EUROPEANS' BUSINESS AT&T HAS INVITED ITS EUROPEAN RIVALS TO JOIN IN RATHER THAN FIGHT BUT EUROPE'S TELECOMS FEAR THE AMERICAN COLOSSUS POSES A PROBLEM EITHER WAY AS A DOMINANT COMPETITOR OR AS A DOMINANT PARTNER TODAY THE BIGGEST AMERICAN PRESENCE IS IN BRITAIN THE MOST OPEN MARKET IN EUROPE SPRINT CORP JUST WON A UK PHONE LICENSE AT&T HAS APPLIED FOR ONE AND NEW YORKBASED NYNEX IS ALREADY MOUNTING THE BIGGEST COMPETITIVE THREAT BRITISH TELECOM HAS EVER FACED IT IS BUILDING A 25 BILLION NATIONAL TELEPHONE COMPANY FROM SCRATCH THE METHOD IS UNORTHODOX IT IS BUYING UP CABLETELEVISION NETWORKS ACROSS THE COUNTRY INTERCONNECTING THEM AND THEN MODIFYING THEM SO THEIR WIRES CAN CARRY TELEPHONE CALLS AS WELL AS TV SITCOMS NYNEX IS ALREADY THE BIGGEST CABLETV OPERATOR IN BRITAIN AND EXPECTS CABLETELEPHONE SERVICES TO GRAB AS MUCH AS 20 OF THE BRITISH PHONE MARKET BY THE END OF THE DECADE WE'RE HERE FOR THE LONG TERM SAYS EUGENE CONNELL PRESIDENT OF NYNEX'S UK UNIT JUST HOW LONG MR WALTON AT EUROPEAN TELECOM WILL HANG ON IS MORE PROBLEMATIC A SIMPLE DISCOUNT BUSINESS LIKE HIS CAN LAST ONLY SO LONG AS THE EUROPEAN COMPANIES KEEP PRICES HIGH IN SEPTEMBER BELGACOM SLASHED ITS INTERNATIONAL RATES 6 TO 50 ACTUALLY PUSHING RATES FOR CALLS TO THE BELOW THE FULLPRICE RATES OF SAY MCI TO BELGIUM BELGACOM'S CUT WAS AIMED AT BIGGER RIVALS BUT IT FORCED TINY EUROPEAN TELECOM TO REDUCE ITS RATES TOO ITS PROFIT MARGIN FELL TO JUST A FEW PERCENT ON SOME CALLS THAT PERCENTAGE CUT WAS QUITE PAINFUL SAYS MR DEHONT THE PARTNERS SAY THEY WILL RESPOND BY CUTTING THEIR OWN COSTS FURTHER AND IF THAT FAILS THEY SIMPLY MAY PICK UP AND MOVE TO OTHER EUROPEAN COUNTRIES WITH STILLHIGH TARIFFS ADDITIONALLY THEY PLAN TO MAKE THEIR SERVICE BETTER NOT JUST CHEAPER SO IN BETWEEN ANSWERING REPAIR CALLS MR WALTON IS BACK IN THE SPARE BEDROOM WITH HIS PCS HE HAS ALREADY ORDERED NEW PLUGIN PC BOARDS FROM THE US TO ADD NEW FEATURES SUCH AS ALLDIGITAL CALLING IT'S JUST PROGRAM PROGRAM PROGRAM HE SIGHS JANE POPS IN AND GIVES ME A CUP OF TEA BUT I'M PRETTY MUCH A LITTLE HERMIT BUT HE CAN'T IMAGINE ANYTHING BUT SUCCESS THERE'S SUCH A VAST MARKET IN EUROPE HE SAYS HIS EYES WIDENING IF YOU'RE THERE YOU'RE GOING TO GET A SALE 9311010120 931101 FORMER TOP EXECUTIVE OF CITY NATIONAL BANK ENTERS PLEA OF GUILTY NEWARK NJ A FORMER HIGH EXECUTIVE OF NEWARKBASED CITY NATIONAL BANK PLEADED GUILTY TO SCHEMING TO DEFRAUD THE BANK AND ACCEPT BRIBES FROM A REAL ESTATE DEVELOPER IN CONNECTION WITH LOANS OF 165 BILLION MADE IN 1988 AND 1989 ANTHONY BUNN 44 OF MANALAPAN NJ WHO WAS CHIEF OPERATING OFFICER UNTIL HE RESIGNED IN MARCH 1989 FACES A MAXIMUM OF 10 YEARS IN FEDERAL PRISON AND UP TO 500000 IN FINES CITY NATIONAL IS A CLOSELY HELD MINORITYOWNED BANK ALSO LUIS ARTURO LINARES 34 OF HAMDEN CONN WHO HAD BEEN VICE PRESIDENT OF NOWDEFUNCT JERSEY DEVELOPMENT CORP A NUTLEY NJ COMPANY THAT BOUGHT AND DEVELOPED REAL ESTATE PLEADED GUILTY TO A CHARGE OF BRIBERY MR LINARES FACES A MAXIMUM OF FIVE YEARS IN FEDERAL PRISON AND UP TO 250000 IN FINES 9311010119 931101 WHO'S NEWS MOTOROLA PUTS OFF NAMING SUCCESSOR TO GEORGE FISHER SCHAUMBURG ILL MOTOROLA INC'S BOARD POSTPONED PICKING A SUCCESSOR TO GEORGE MC FISHER THE CHIEF WHO RESIGNED LAST WEEK TO JOIN EASTMAN KODAK CO AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER HOWEVER AFTER AN EMERGENCY BOARD MEETING FRIDAY THE ELECTRONICS COMPANY SAID IT WOULDN'T LOOK OUTSIDE FOR A NEW TOP EXECUTIVE THE BOARD AFFIRMED ITS ASSIGNMENTS OF A MOTOROLA DIRECTOR AND AN EXECUTIVE TO INTERIM POSITIONS IN AN OFFICE OF THE CHIEF EXECUTIVE WHICH WILL ASSUME MR FISHER'S DUTIES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MOTOROLA NAMED WILLIAM WEISZ A RETIRED VICE CHAIRMAN OF MOTOROLA ACTING CHAIRMAN AND GARY TOOKER PRESIDENT AND CHIEF OPERATING OFFICER ACTING CEO CHRISTOPHER GALVIN SENIOR EXECUTIVE VICE PRESIDENT AND ASSISTANT CHIEF OPERATING OFFICER WILL CONTINUE AS A MEMBER OF THE CHIEF EXECUTIVE'S OFFICE SINCE MR FISHER'S SURPRISE DECISION TO MOVE TO KODAK MOST BETS HAVE BEEN ON MOTOROLA'S CHOOSING AN INSIDER TO SUCCEED HIM THE COMPANY CONFIRMED THAT VIEW IN DECLARING ITS SUPPORT FOR THE PRESENT MOTOROLA MANAGEMENT TEAM THE BOARD STATED THAT IT HAD NO REASON TO LOOK OUTSIDE THE COMPANY 9311010118 931101 INTERNATIONAL RETAIL SALES RISE IN IRELAND DUBLIN RETAIL SALES IN IRELAND ROSE A PROVISIONAL 19 IN AUGUST FROM JULY AND WERE UP 4 FROM A YEAR EARLIER THE CENTRAL STATISTICS OFFICE SAID THE LATEST MONTHONMONTH RISE IN THE INDEX WHICH MEASURES THE VALUE RATHER THAN THE VOLUME OF SALES COMPARES WITH A REVISED INCREASE OF 11 IN JULY FROM THE MONTH EARLIER 9311010117 931101 LAW LEGAL BEAT DELAWARE COURT HAS NEW WARNING FOR BOARDS MULLING TAKEOVER BIDS BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL THE DELAWARE SUPREME COURT HAS SENT A TOUGH NEW SIGNAL TO CORPORATE DIRECTORS THAT THEY MUST PROVIDE SHAREHOLDERS MAXIMUM VALUE WHEN SELLING A PUBLIC COMPANY IN A CASE INVOLVING RONALD PERELMAN'S 1983 ACQUISITION OF TECHNICOLOR INC THE COURT RULED THAT A BOARD THAT FAILS TO GIVE FAIR CONSIDERATION TO ALL POTENTIAL SUITORS MAY HAVE TO PAY DAMAGES TO SHAREHOLDERS EVEN IF THE ULTIMATE SALE PRICE IS GREATER THAN THE ASSESSED VALUATION OF THE COMPANY AS A PRACTICAL MATTER THE DECISION GIVES SHAREHOLDERS AN OPPORTUNITY TO WIN DAMAGES OR UNWIND TRANSACTIONS THAT APPEAR AFTER THE FACT TO HAVE BENEFITED THE NEW OWNERS MUCH MORE THAN THE OLD SHAREHOLDERS IT ALSO EXPOSES THE ACTIONS OF CORPORATE DIRECTORS TO A NEW LEVEL OF JUDICIAL REVIEW AT A TIME WHEN TAKEOVERS ARE BACK IN VOGUE SPECIFICALLY THE COURT SAID THAT IF A BOARD IS NEGLIGENT IN HANDLING THE SALE OF THE COMPANY SHAREHOLDERS DON'T HAVE TO PROVE AT THE OUTSET THAT THEY WERE HARMED BY THE NEGLIGENCE TO PROCEED WITH THEIR LAWSUIT INSTEAD THE RESPONSIBILITY FALLS TO THE CORPORATE DIRECTORS TO SHOW THAT THEIR ACTIONS WERE FAIR AND REASONABLE IN THE PERELMAN CASE THIS MEANS THAT THE SHAREHOLDERS' SUIT WHICH HAD BEEN DISMISSED BY A LOWER COURT WILL HAVE TO RETURN TO THAT COURT FOR A FURTHER HEARING THE DECISION REACHED LATE LAST MONTH REINFORCES AND STRENGTHENS A SERIES OF RULINGS DURING THE TAKEOVER BOOM OF THE 1980S THAT EXPANDED THE DUTIES OF CORPORATE DIRECTORS FACED WITH MERGER PROPOSALS A KEY CASE OF THAT PERIOD WAS A 1985 DECISION KNOWN AS SMITH VS VAN GORKOM WHICH HELD THAT A BOARD COULD BE HELD LIABLE FOR APPROVING THE SALE OF A COMPANY EVEN AT A SIGNIFICANT PREMIUM TO THE MARKET PRICEIF IT HADN'T FOLLOWED PROCEDURES SUCH AS OBTAINING AN INVESTMENT BANK'S OPINION THAT THE TRANSACTION WAS FAIR MR PERELMAN WAS A MAJOR BENEFICIARY OF THE DELAWARE HIGH COURT'S APPROACH HIS 1985 ACQUISITION OF REVLON INC WAS MADE POSSIBLE AFTER THE COURT STRUCK DOWN TAKEOVER DEFENSES ERECTED BY THE COSMETIC CONCERN'S DIRECTORS LATER THE REVLON CASE BECAME A LANDMARK FOR THE PROPOSITION THAT DIRECTORS HAVE AN ABSOLUTE DUTY TO SEEK THE HIGHEST PRICE FOR A COMPANY WHEN A SALE BECOMES INEVITABLE IN THE LATEST PERELMAN CASE A SHAREHOLDER GROUP SUED HIM AND THE BOARD OF TECHNICOLOR A LEADING HOLLYWOOD FILM PROCESSOR ALLEGING FRAUD BREACH OF FIDUCIARY DUTY AND UNFAIR DEALING IN THE TRANSACTION ACCORDING TO THE SUIT THREE OF TECHNICOLOR'S NINE DIRECTORS HAD A FINANCIAL INTEREST IN THE TRANSACTION WHILE A MAJORITY KNEW LITTLE OR NOTHING ABOUT MR PERELMAN'S PROPOSAL IN ADVANCE OF A SPECIAL MEETING TO CONSIDER THE SALE NONETHELESS THE COMPLAINT ALLEGED THE BOARD VOTED TO APPROVE THE SALE THE SAME DAY OF THE MEETING WITHOUT SEEKING ALTERNATIVE BIDDERS MR PERELMAN'S MACANDREWS & FORBES GROUP PAID 125 MILLION FOR THE COMPANY WHICH HE SOLD IN 1988 AT AN ESTIMATED 650 MILLION PROFIT TO UKBASED CARLTON COMMUNICATIONS THE LEGAL PROCEEDINGS INCLUDING TWO SEPARATE SUITS DATE TO 1983 MAKING THE DISPUTE ONE OF THE LONGESTRUNNING BUSINESS CASES IN DELAWARE COURT HISTORY IN DISMISSING THE SUIT IN 1991 A DELAWARE TRIAL COURT FOUND THAT WHILE THERE WAS EVIDENCE THAT THE TECHNICOLOR BOARD HADN'T ADEQUATELY CONSIDERED ALTERNATIVES TO THE TAKEOVER OFFER THE SHAREHOLDERS HADN'T SUFFERED ANY FINANCIAL HARM BECAUSE THE APPRAISED VALUE OF THE COMPANY AT THE TIME OF SALE WAS LESS THAN THE PURCHASE PRICE THE DECISION RELIED IN PART ON A POWERFUL LEGAL PRINCIPLE KNOWN AS THE BUSINESSJUDGMENT RULE WHICH ENABLES MANAGEMENT TO AVOID LAWSUITS ABSENT A SHOWING OF SELFDEALING OR GROSS NEGLIGENCE BUT THE DELAWARE SUPREME COURT REVERSED THOUGH THE DECISION DOESN'T AUTOMATICALLY IMPOSE LIABILITY ON THE DIRECTORS IT REVIVES THE CASE AND PUTS THE ONUS ON THE DIRECTORS TO SHOW THAT THE TRANSACTION WAS HANDLED FAIRLY AND THAT THE PRICE WAS THE HIGHEST REASONABLY AVAILABLE IT WOULD BE A PROVISION THAT SEEMS TO BE TIGHTENING THE STANDARD FOR DIRECTORS AGAIN SHOWING THE CONTINUED LOYALTY OF THE DELAWARE SUPREME COURT TO SMITH VS VAN GORKOM SAID JOHN COFFEE A COLUMBIA UNIVERSITY LAW PROFESSOR THAT WILL FRIGHTEN DIRECTORS RODMAN WARD JR A LAWYER FOR MR PERELMAN IN WILMINGTON DEL SAID MR PERELMAN CONTINUES TO BELIEVE THAT THE TAKEOVER WAS FAIR TO SHAREHOLDERS I THOUGHT PERSONALLY THAT THE CHANCELLOR OF THE LOWER COURT GOT IT RIGHT HE ADDED BUT GARY J GREENBERG A NEW YORK LAWYER FOR THE SHAREHOLDER BRINGING THE SUIT SAID HIS CLIENT STILL HOPES TO RECOVER SUBSTANTIAL DAMAGES I THINK THE DECISION IS A STRONG SIGNAL THAT DELAWARE WILL NOT PROVIDE A SAFE HARBOR FOR FAITHLESS CORPORATE FIDUCIARIES HE SAID THE CASE WAS BROUGHT BY CINERAMA INC AN INVESTMENT FIRM CONTROLLED BY MICHAEL FORMAN AN HEIR TO THE LOS ANGELESBASED PACIFIC THEATRES DRIVEIN CHAIN AND LIKE MR PERELMAN ONE OF THE COUNTRY'S RICHEST PEOPLE CINERAMA FORMERLY OWNED 45 OF TECHNICOLOR AND HAS SOUGHT DAMAGES OF 35 MILLION BASED UPON THE PRICE AT WHICH MR PERELMAN LATER SOLD THE COMPANY IN THEORY OTHER SHAREHOLDERS COULD BRING SUIT ALTHOUGH THEIR CLAIMS MAY BE BARRED BY THE STATUTE OF LIMITATIONS LAWYERS FOR THE FORMER TECHNICOLOR OFFICERS AND DIRECTORS COULDN'T BE REACHED FOR COMMENT A PROPOSED LAW DESIGNED TO ENCOURAGE NEWS ORGANIZATIONS TO CORRECT OR CLARIFY LIBELOUS STATEMENTS HAS BEEN APPROVED BY A GROUP APPOINTED BY THE NATION'S GOVERNORS TO DRAFT MODEL STATE LEGISLATION THE FINAL PROPOSAL RELEASED IN DRAFT FORM LAST MONTH BY THE NATIONAL CONFERENCE OF COMMISSIONERS ON UNIFORM STATE LAWS DEPARTS MARKEDLY FROM THE ORIGINAL PROPOSAL SO FAR IT HAS WON OVER SOME CRITICS WHO FEARED THAT THE EARLIER VERSION WAS A RECODIFICATION OF LIBEL LAW THAT LEANED TOO FAR IN FAVOR OF PLAINTIFFS THE NEW PROPOSAL CALLED THE UNIFORM CORRECTION OR CLARIFICATION OF DEFAMATION ACT SETS CAPS ON DAMAGES FOR LIBEL IF PUBLISHERS AND OTHER NEWS ORGANIZATIONS ISSUE PROMPT CORRECTIONS AND RETRACTIONS WHEN WARRANTED AT THE SAME TIME IT REQUIRES NEWS ORGANIZATIONS TO PAY THE OTHER SIDE'S ATTORNEYS' FEES IF THEY DELAY CORRECTING OR RETRACTING AN ALLEGEDLY LIBELOUS STATEMENT UNTIL AFTER PROLONGED LITIGATION LIBEL LAW EXPERTS HAVE BEEN PUSHING FOR SUCH A UNIFORM RETRACTION STATUTE FOR SOME TIME ON THE THEORY THAT MOST LIBEL SUITS CAN BE AVERTED IF NEWS ORGANIZATIONS RESPOND PROMPTLY AND REASONABLY TO COMPLAINTS OF ALLEGED LIBEL A UNIFORM LAW IS NEEDED SAYS WASHINGTON AND LEE UNIVERSITY SCHOOL OF LAW'S DEAN RANDALL P BEZANSON THE MODEL ACT'S DRAFTSMAN BECAUSE STATUTES NOW ON THE BOOKS IN 33 STATES IMPOSE DIFFERENT REQUIREMENTS AND DAMAGE LIMITS THE INCONSISTENCIES PARTICULARLY AFFECT NATIONAL NEWS ORGANIZATIONS UNDER THE MODEL LAW PLAINTIFFS MUST FIRST REQUEST A CORRECTION OR CLARIFICATION WITHIN 90 DAYS OF THE ALLEGED LIBEL BEFORE FILING A SUIT OR ELSE BE ELIGIBLE FOR DAMAGES ONLY FOR ACTUAL ECONOMIC LOSS STEMMING FROM A LIBELOUS STATEMENT NEWS ORGANIZATIONS IN TURN HAVE 45 DAYS TO RESPOND TO THE REQUEST BUT IF NO CORRECTION OR CLARIFICATION IS PUBLISHED WITHIN 45 DAYS PLAINTIFFS ARE ENTITLED TO THE FULL RANGE OF DAMAGES AT TRIAL INCLUDING PUNITIVE DAMAGES AND RECOVERY FOR EMOTIONAL DISTRESS REACTION TO THE PROPOSAL FROM MEDIA ORGANIZATIONS HAS BEEN MIXED SAID LEE LEVINE A LIBEL SPECIALIST AT THE WASHINGTON FIRM OF ROSS DIXON & MOSSBACK WHO WAS A CRITIC OF THE EARLIER PROPOSAL MOST MEDIA PEOPLE WHO ARE EXPERIENCED IN THIS AREA SEE THIS AS A PROCEDURAL MECHANISM THAT FAVORS NEITHER SIDE BUT AFFORDS PEOPLE OF GOOD INTENTION A METHOD OF RESOLVING DISPUTES IN A REASONABLE WAY SAID MR LEVINE THE CONCERN SAID MR LEVINE IS OVER WHETHER DIFFERENT STATE LEGISLATURES CAN PASS THE MODEL LAW WITHOUT TINKERING WITH IT MR BEZANSON AT WASHINGTON AND LEE LAW SCHOOL SAID HE HOPES THAT THE MODEL LAW COULD BECOME LAW IN ALL 50 STATES IN SEVEN OR EIGHT YEARS STANLEY ARKIN A WHITECOLLAR CRIMINAL DEFENSE LAWYER WHOSE CLIENTS HAVE INCLUDED PAUL MOZER THE TRADER WHO PLEADED GUILTY IN THE SALOMON TREASURYAUCTION SCANDAL SAID HE IS LEAVING NEW YORK'S CHADBOURNE & PARKE TO FORM HIS OWN LAW FIRM WITH TWO PARTNERS HE WILL ALSO AFFILIATE WITH THE LOS ANGELES LAW FIRM HILL WYNNE TROOP & MEISINGER IN A NONPARTNERSHIP POSITION MR ARKIN 55 YEARS OLD JOINED CHADBOURNE IN 1990 AFTER A LONG CAREER AS A SOLO PRACTITIONER CITING AMONG OTHER REASONS THE BIG FIRM'S CAPACITY TO FREE HIM FROM ADMINISTRATIVE TASKS IN RELINQUISHING HIS CHADBOURNE PARTNERSHIP HE SAID CONFLICTS BETWEEN HIS CLIENTS AND THE FIRM'S WERE APPEARING A LITTLE OFTEN THE SPINOFF FIRM TO BE CALLED ARKIN SCHAFFER & SUPINO WILL RENT OFFICE SPACE FROM CHADBOURNE MR ARKIN SAID MILO GEYELIN CONTRIBUTED TO THIS ARTICLE 9311010116 931101 CANADIAN FIRMS' PROFITS ROSE BROADLY IN 3RD PERIOD BUT PACE COULD LEVEL OFF BY MARK HEINZL STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CANADIAN CORPORATE PROFITS CLIMBED BROADLY HIGHER IN THE THIRD QUARTER BUT ANALYSTS WARN THAT THE PACE OF THE PROFIT UPSWING COULD SOON LEVEL OFF AS THE NATION'S ECONOMY GROWS ONLY AT A MODERATE RATE A WALL STREET JOURNAL SURVEY OF 101 EARLYREPORTING COMPANIES SHOWS COMBINED THIRDQUARTER PROFITS OF 6441 MILLION CANADIAN DOLLARS US4865 MILLION THE TOTAL ROSE ONLY 37 FROM THE YEAREARLIER QUARTER BUT IT WAS DRAGGED DOWN BY A FEW LARGE COMPANIES THAT REPORTED SHARP DOWNTURNS IN THEIR RESULTS FOR INSTANCE WRITEDOWNS CAUSED A QUARTERLY LOSS OF US3349 MILLION AT WASTEMANAGEMENT CONCERN LAIDLAW INC COMPARED WITH A PROFIT OF 249 MILLION A YEAR EARLIER A BETTER SNAPSHOT OF THE PROFIT TREND IS PROVIDED BY THE FACT THAT 73 COMPANIES IN THE SURVEY REPORTED IMPROVED RESULTS WHILE 28 REPORTED WORSE RESULTS PROFITABILITY IS CLEARLY ON THE MEND IN THIS COUNTRY SAYS ARON GAMPEL AN ECONOMIST AT BANK OF NOVA SCOTIA HERE ANALYSTS NOTE THAT MUCH OF THE IMPROVEMENT IN EARNINGS RESULTS FROM CORPORATE COSTCUTTING EFFORTS WHICH ARE LARGELY COMPLETED MR GAMPEL EXPECTS CANADA'S GROSS DOMESTIC PRODUCT TO RISE A MODERATE 25 THIS YEAR AND 28 NEXT YEAR AND CORPORATE PROFITS TO CLIMB 25 AND 35 RESPECTIVELY THOSE NUMBERS AREN'T BAD HE SAYS BUT LOWER THAN IN PAST ECONOMIC RECOVERIES YOU CAN'T REALLY EXPECT STELLAR PROFIT GROWTH IN THE NEXT FEW QUARTERS SAYS BOB BOAZ ECONOMIST AND PORTFOLIO STRATEGIST AT DEACON BARCLAYS DE ZOETE WEDD LTD HERE NOW THAT CANADIAN COMPANIES HAVE TRIMMED MOST OF THEIR FAT STRONG PROFIT GAINS RELY ON PRICE AND VOLUME INCREASES WHICH AREN'T LIKELY IN THE NEAR TERM HE SAYS MR BOAZ SAYS HE PLANS TO REDUCE THE EQUITIES PORTION OF HIS PORTFOLIO IN FAVOR OF BONDS BECAUSE HE SEES A RISK THAT COMPANIES WILL REPORT EARNINGS BELOW EXPECTATIONS UNEMPLOYMENT AND WEAK CONSUMER SPENDING ARE EXPECTED TO CONTINUE TO DRAG ON CANADA'S ECONOMY CANADA'S UNEMPLOYMENT RATE CURRENTLY 112 WILL REMAIN IN DOUBLE DIGITS THROUGH 1994 AND THIS YEAR WILL REPRESENT THE FOURTH CONSECUTIVE YEARLY DECLINE IN REAL DISPOSABLE INCOME MR GAMPEL SAYS HOWEVER CORPORATE CANADA IS IN A SOLID POSITION TO BENEFIT FROM ANY UPTICK IN THE WORLD ECONOMY STRONG EXPORTS LOW LABOR COSTS AND STEADY CORPORATE TAXATION LEVELS WILL DRIVE A 30 JUMP IN CANADIAN CORPORATE PROFITS NEXT YEAR CONSIDERABLY STRONGER THAN THE EARNINGS GROWTH IN THE US SAYS NEIL JOHNSON ECONOMIST AND PORTFOLIO STRATEGIST WITH SECURITIES DEALER NESBITT THOMSON INC HERE MR JOHNSON SAYS PRICES OF CANADIAN STOCKS ALREADY REFLECT MUCH OF THE EXPECTED INCREASE IN EARNINGS HE SEES THE TORONTO STOCK EXCHANGE'S 300STOCK COMPOSITE INDEX CURRENTLYAT 4256 TRADING IN A RANGE BETWEEN 3875 TO 4375 FOR ANOTHER YEAR IN THE JOURNAL SURVEY CANADA'S STEEL COMPANIES POSTED THE MOST IMPROVED RESULTS DOFASCO INC CANADA'S LARGEST STEEL PRODUCER REPORTED A THIRDQUARTER PROFIT OF C62 MILLION COMPARED WITH A LOSS OF C147 MILLION A YEAR EARLIER STELCO INC HAD A THIRDQUARTER PROFIT OF C2 MILLION COMPARED WITH A YEAREARLIER LOSS OF C58 MILLION STEEL COMPANIES BENEFITED FROM A STRONG AUTO SECTOR AND HIGHER PRICES THE STEEL SECTOR WAS A BRIGHT SPOT AMONG THE 16 INDUSTRIAL COMPANIES IN THE PROFIT SURVEY INDUSTRIALS REPORTED COMBINED THIRDQUARTER PROFITS OF C1049 MILLION DOWN FROM C1133 MILLION A YEAR EARLIER TELECOMMUNICATIONS CONCERN NORTHERN TELECOM LTD WAS RESPONSIBLE FOR THE DECLINE SWINGING TO A LOSS OF US337 MILLION FROM A PROFIT OF US1162 MILLION A YEAR EARLIER RESULTS IN THE CONSUMERPRODUCTS SECTOR WERE HURT BY SHARPLY INCREASED LOSSES AT FORD MOTOR CO OF CANADA WHICH REPORTED A LOSS OF C1138 MILLION COMPARED WITH A YEAREARLIER LOSS OF C336 MILLION WITHOUT FORD 10 CONSUMERPRODUCTS COMPANIES SHOWED A TOTAL PROFIT OF C1571 MILLION UP 15 FROM A YEAR EARLIER CANADA'S NATURALRESOURCES COMPANIES POSTED MIXED RESULTS THE MINING SECTOR IS STILL STRUGGLING WITH HIGH INVENTORIES AND SLUMPING BASEMETALS PRICES AND SOME ANALYSTS SAY THE BOTTOM HAS YET TO BE REACHED WE ARE BEARISH ON THAT SECTOR SAYS NESBITT THOMSON'S MR JOHNSON EIGHT MINING CONCERNS POSTED A COMBINED PROFIT OF C465 MILLION DOWN 62 FROM A YEAR EARLIER RESULTS FOR BASEMETALS PRODUCER COMINCO LTD PLUNGED TO A LOSS OF C702 MILLION FROM A PROFIT OF C518 MILLION A YEAR EARLIER WHICH INCLUDED AN AFTERTAX GAIN OF C391 MILLION TOTAL THIRDQUARTER PROFITS FOR FOUR GOLDMINING CONCERNS WERE C731 MILLION A 5 DROP FROM THE YEAREARLIER QUARTER FIRMER LUMBER PRICES LED TO IMPROVED RESULTS FOR 11 FORESTPRODUCTS COMPANIES WHICH REPORTED A TOTAL LOSS OF C224 MILLION COMPARED WITH A LOSS OF C1808 MILLION A YEAR EARLIER STILL RESULTS WORSENED FROM THE SECOND QUARTER'S COMBINED PROFIT OF C247 MILLION TWELVE OIL AND GAS COMPANIES BENEFITED FROM STRONG DEMAND FOR GAS POSTING COMBINED THIRDQUARTER PROFITS OF C2602 MILLION COMPARED WITH A LOSS OF C1708 MILLION A YEAR EARLIER WHICH WAS SKEWED BY SEVERAL CHARGES AGAINST EARNINGS PROFITS AT IMPERIAL OIL LTD ROSE FOR THE FOURTH CONSECUTIVE QUARTER REACHING C84 MILLION UP 83 FROM A YEAR EARLIER 9311010115 931101 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN GERMANY IS BEEFING UP ITS AMBITIOUS RECYCLING SYSTEM DESPITE A SCRAPE WITH BANKRUPTCY LAST MONTH AND PROBLEMS IN REPROCESSING SOME WASTE THE GOVERNMENT AND INDUSTRY AGREED ON MEASURES TO STABILIZE DUALES SYSTEM DEUTSCHLAND WHICH AIMS TO COLLECT 80 OF USED PACKAGING SUCH AS BOTTLES CONTAINERS AND WRAPPINGS FROM CONSUMERS AND MAKE IT USABLE AGAIN THE PROGRAM WAS SET UP BY PRODUCERS AND RETAILERS TO AVOID HAVING TO ACCEPT WASTE RETURNED UNDER FEDERAL RECYCLING RULES BUT DSD LACKS ENOUGH PLASTIC RECYCLING CAPACITY AND HAS FINANCIAL WOES INCLUDING DEBT OF 5196 MILLION AS ONLY HALF OF 15000 FIRMS PAID PARTICIPATION FEES THE RESTRUCTURING INCLUDES AMONG OTHER THINGS A SYSTEM TO MONITOR PAYMENT OF LICENSING FEES FOR USE OF THE DSD GREEN DOT ON PACKAGING CEILINGS ON WASTE FIRMS' CHARGES EXPANDED PLASTICHANDLING CAPACITY AND A NEW PRICE SYSTEM TO REFLECT HIGHER PROCESSING COSTS FOR PLASTICS WHICH COULD DISCOURAGE MANUFACTURERS FROM USING PACKAGING THAT IS DIFFICULT TO PROCESS FOUR IN 10 JAPANESE WORKERS ARE WOMEN BUT THE LABOR MINISTRY SAID THEIR EMPLOYMENT CONDITIONS SPECIFICALLY PAY PROMOTIONS AND PENSIONS NEED TO BE IMPROVED EMPLOYED WOMEN IN THE YEAR ENDED MARCH 31 TOTALED 197 MILLION UP 28 FROM A YEAR EARLIER BUT A THIRD OF THEM HOLD PARTTIME JOBS OFTEN BECAUSE OF A TAX SYSTEM THE LABOR AGENCY SAID IS UNFAIR WOMEN WHO EARN MORE THAN 9200 A YEAR MUST PAY INCOME TAXES AND LOSE DEPENDENT STATUS BOOSTING FAMILY TAXES THUS MANY WOMEN TAKE PARTTIME JOBS WHICH CRITICS SAY OFTEN ROBS THEIR ABILITIES FROM JAPAN'S ECONOMIC VITALITY SIX CENTRAL AMERICAN COUNTRIES SIGNED AN ACCORD ON ECONOMIC AND POLITICAL UNION BUT DIDN'T SET A TIMETABLE THE PACT AIMS TO CREATE A FREETRADE ZONE OF 30 MILLION PEOPLE IN COSTA RICA EL SALVADOR GUATEMALA HONDURAS NICARAGUA AND PANAMA IT PROVIDES FOR FREE MOVEMENT OF LABOR AND CAPITAL REMOVAL OF TARIFFS A SINGLE CUSTOMS SERVICE AND COORDINATED ECONOMIC POLICIES IT WOULD PROMOTE STOCKMARKET LINKS ALLOW BRANCH BANKING AND ALIGN LAWS ON BANKS STOCK EXCHANGES FINANCE INSURANCE AND INTELLECTUAL PROPERTY POLAND'S NEW GOVERNMENT CANCELED AN AUCTION OF SHARES IN STATEOWNED BANK SLASKI SAYING APPLICANTS DIDN'T QUALIFY AS STRATEGIC INVESTORS IT WITHDREW THE OFFER TO SELL A 45 HOLDING IN STAKES OF AT LEAST 2 TO INSTITUTIONS OR INDIVIDUALS AND WILL SEEK SUCH A PARTNER THROUGH A PRIVATE PLACEMENT BUT THE SALE OF 15 TO 30 OF THE SHARES TO SMALL INVESTORS WILL PROCEED IN A PUBLIC OFFERING STARTING WEDNESDAY BANK SLASKI'S PRIVATIZATION WAS CONSIDERED VITAL IN REPAIRING POLAND'S INEFFICIENT BANKING SYSTEM THE ALTERED TERMS PROMPTED WORRIES OF STRICTER CONTROLS SLOWING SELLOFFS RUSSIA WILL LIFT RESTRICTIONS SOON ON DOMESTIC GOLD TRADING ALLOWING FORMATION OF AN EXCHANGE FOR THE PRECIOUS METAL A PRESIDENTIAL DECREE WAS BEING DRAFTED TO LIBERALIZE THE STATECONTROLLED GOLD MARKET WHILE RUSSIA IS AMONG THE WORLD'S TOP GOLD PRODUCERS RUSSIANS FOR DECADES HAVE BEEN BANNED FROM BUYING GOLD BUT THIS WAS EFFECTIVELY LIFTED IN SEPTEMBER WHEN THE GOVERNMENT BEGAN ISSUING GOLDBACKED BONDS WITH DELIVERY IN CASH OR GOLD THYROID CANCER CASES ARE INCREASING SIGNIFICANTLY AMONG CHILDREN SUBJECTED TO RADIOACTIVE FALLOUT FROM THE CHERNOBYL NUCLEAR EXPLOSION IN APRIL 1986 THE WORLD HEALTH ORGANIZATION SAID IN GENEVA SINCE 1989 THE UNITED NATIONS AGENCY SAID 225 NEW CASES OF THE DISEASE HAVE BEEN IDENTIFIED AMONG CHILDREN IN BELARUS HIT WORST BY THE RADIATION THAT SPREAD WIDELY FROM THE UKRAINE REACTOR EXPLOSION IN NORMAL CIRCUMSTANCES TWO OR THREE OF THESE CANCER CASES COULD HAVE BEEN EXPECTED A MELEE ERUPTED AT LISBON'S AIRPORT BETWEEN POLICE AND THOUSANDS OF TAPAIR PORTUGAL WORKERS PROTESTING THE FINANCIALLY AILING STATE CARRIER'S PLAN TO FREEZE SALARIES AND CUT AT LEAST 2500 JOBS PARLA A WORKINGCLASS SUBURB OF MADRID OFFERED TO ACCEPT LENIN'S CADAVER AND CREATE A TOURIST ATTRACTION RUSSIA MAY CLOSE LENIN'S MAUSOLEUM ON RED SQUARE IN MOSCOW AND MOVE THE BODY OF THE FATHER OF THE 1917 BOLSHEVIK REVOLUTION TO A PLOT BY HIS MOTHER'S GRAVE IN ST PETERSBURG 9311010114 931101 LETTERS TO THE EDITOR CRIME'S ROOTS GROW DEEP IN YOUR SEPT 28 EDITORIAL APPEAL FOR HARSHER JUVENILE JUSTICE BAD BOYS YOU ARGUE THAT CHILDREN IN THE 1990S COMMIT VIOLENT CRIMES BECAUSE UNDER THE LENIENT LAWS CREATED 30 YEARS AGO CRIME PAYS YOU DERIDE ATTORNEY GENERAL JANET RENO'S DESIRE TO ADDRESS THE ROOT CAUSES OF CRIME ACCORDING TO YOU THE ROOT CAUSE IS SIMPLY THAT THE LAWS ARE TOO LENIENT BUT WAIT A SEC MORE VIOLENT CRIME IS BEING COMMITTED NOW THAN 30 YEARS AGO THE REASON IS THAT CRIME PAYS WHY DID IT TAKE CRIMINALS SO LONG TO CATCH ON NO THE ROOT CAUSES ARE OBVIOUSLY A LOT DEEPER THAN WEAK PUNISHMENTS I DON'T KNOW WHAT THE ROOT CAUSES ARE BUT HERE'S A SHORT LIST OF CANDIDATES DISILLUSIONMENT OF INNERCITY YOUTH WHO SEE NO FUTURE FOR THEMSELVES IN THE LEGAL ECONOMY THE GLORIFICATION OF VIOLENCE IN POPULAR MEDIA THE BREAKDOWN OF FAMILY AND COMMUNITY AIDED BY THE REVOLUTIONS IN TRANSPORTATION AND COMMUNICATION AND THANKS TO TECHNOLOGY AND THE NRA THE EASE WITH WHICH ONE PERSON CAN KILL ANOTHER I DON'T HAVE A PROBLEM WITH LOCKING UP VIOLENT CRIMINALS I DO HAVE A PROBLEM WITH NOT LOOKING AT WHY VIOLENCE IS SO PREVALENT IN OUR SOCIETY 9311010113 931101 STATE SPINOFFS IN EUROPE OFFER A FRESH PITCH AS FRANCE AND ITALY SELL OFF CONCERNS AD AGENCIES BATTLE FOR BIG ACCOUNTS BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL WITH AD SPENDING IN THE DOLDRUMS THROUGHOUT EUROPE MULTINATIONAL AGENCIES ARE SLUGGING IT OUT FOR ONE OF THE FEW NEW SOURCES OF BUSINESS IN THE FUTURE THE MULTIMILLIONDOLLAR AD CAMPAIGNS SET TO ACCOMPANY COMING PRIVATIZATIONS IN FRANCE AND ITALY THIS IS A BIG OPPORTUNITY FOR ADVERTISING AGENCIES WHO ARE FEELING THE RECESSION LIKE EVERYBODY ELSE SAYS VALERIA MONTI DIRECTOR OF CLIENT SERVICES AND DEVELOPMENT AT J WALTER THOMPSON IN ITALY J WALTER THOMPSON CALCULATES THAT EACH PRIVATIZATION MEANS 3 MILLION TO 20 MILLION IN ADVERTISING SPENDING FRANCE SPENT 500 MILLION BETWEEN 1986 AND 1987 TO PRIVATIZE 19 STATE COMPANIES AND THE UK SPENT 250 MILLION BETWEEN 1984 AND 1991 FOR ITS PRIVATIZATION PROGRAM ITALY COULD SPEND AN ESTIMATED 60 MILLION ON ITS FIRST FIVE STATE SPINOFFS BETWEEN THIS YEAR AND 1994 MS MONTI SAYS AND FRANCE HAS SLATED AT LEAST TWO MORE PRIVATIZATIONS BY THE END OF THIS YEAR AND 18 BY 1995 IN AN UNUSUAL PITCH TO WIN A SLICE OF THE NEW ITALIAN BUSINESS J WALTER THOMPSON WITH PUBLICRELATIONS FIRM HILL & KNOWLTON AND KPMG PEAT MARWICK CONSULTANTS RAN NEWSPAPER ADS IN ITALY THIS MONTH AIMED AT CONVINCING THE GOVERNMENT THAT POTENTIAL INVESTORS NEED TO BE EDUCATED ABOUT THE COUNTRY'S FIRST PUBLICSHAREOFFERING PRIVATIZATIONS THE MONTHLONG CAMPAIGN INCLUDED AN OPEN LETTER TO THE GOVERNMENT EXPLAINING THE NEED FOR CLEAR INFORMATION WIDESPREAD COMMUNICATION AND THE INVOLVEMENT OF PROFESSIONAL ADVERTISING AND PUBLICRELATIONS AGENCIES TO MAKE THE STATE SALES A SUCCESS THE GOVERNMENT LAST WEEK FORMED A COMMITTEE TO STUDY A CAMPAIGN TO EDUCATE ITALIANS ABOUT PUBLIC OFFERINGS WE'RE LOOKING AT A SERIES OF INITIATIVES TO SHOW SAVERS WHAT THE PRIVATIZATION PROCESS MEANS SAYS A SPOKESMAN FOR THE TREASURY MINISTRY WHILE HE DECLINED TO GIVE A BUDGET FOR THE GOVERNMENT CAMPAIGN HE SAID IT COULD INCLUDE TRADITIONAL ADVERTISING AND MORE DIRECT MARKETING TO TEACH BASICS ABOUT THE STOCK MARKET VARIOUS INVESTMENTS THE GOAL SAID THE SPOKESMAN IS TO CONVINCE ITALIANS TO DIVERT THEIR SAVINGS FROM SECURE HIGHYIELDING TREASURY BONDS TO COMPANY SHARES IN ADDITION TO THE GOVERNMENT CAMPAIGN EACH STATE COMPANY WILL CHOOSE AN ADVERTISING AGENCY AND SPECIFIC CAMPAIGNS THE COUNTRY'S FIRST PRIVATIZATION CANDIDATE BANK CREDITO ITALIANO HAS HIRED MILAN AGENCY SERGIO DABOVICH FOR ITS PRINT RADIO AND BILLBOARD ADS WHICH WILL DEBUT AT THE END OF NOVEMBER THE GOVERNMENT WHICH IS SELLING ITS 67 STAKE IN THE BANK THROUGH A DECEMBER PUBLIC OFFERING AIMS TO PERSUADE 100000 ITALIANS TO BUY SHARES A BANK SPOKESMAN SAID THE CAMPAIGN WILL BE ACCOMPANIED BY DIRECT MARKETING INCLUDING LETTERS TO BANK CLIENTS INTERNAL COMMUNICATIONS TO PERSUADE BANK EMPLOYEES TO INVEST AND BROCHURES IN BANK BRANCHES DABOVICH WILL PORTRAY PRIVATIZATION AS THE FUTURE OF ITALY THE PITCH WILL BE THAT A PIECE OF THE NEW ITALY CAN BE YOURS IF YOU BUY A SHARE IN CREDITO ITALIANO THE CREDITO SPOKESMAN SAID ISTITUTO MOBILIARE ITALIANO THE ITALIAN LONGTERM CREDIT BANK HAS HIRED YOUNG & RUBICAM TO HANDLE THE PLACEMENT OF A 20 STAKE ON THE MILAN AND NEW YORK STOCK MARKETS AN IMI SPOKESWOMAN SAID THE SALE IS SCHEDULED FOR THE BEGINNING OF FEBRUARY BUT DETAILS OF THE CAMPAIGN HAVEN'T BEEN FINALIZED SHE SAID MEANWHILE ACCOUNTS AT MOST OTHER ITALIAN STATE COMPANIES ARE UP FOR GRABS BANCA COMMERCIALE ITALIANA WHICH IS SCHEDULED TO BE SOLD IN MIDAPRIL HASN'T HIRED AN AGENCY A SPOKESWOMAN SAID ALTHOUGH YOUNG & RUBICAM HAS REPRESENTED THE BANK IN THE PAST AND STATE INSURANCE GROUP INA WHICH WILL BE SOLD IN JUNE PLANS TO BEGIN BIDDING SOON FOR AN AD AGENCY TO HANDLE ITS PRIVATIZATION INA HIRED MCCANNERICKSON ITALIA TO HANDLE ITS EIGHT BILLIONLIRA 49 MILLION CORPORATE ACCOUNT WHICH WILL SUPPLEMENT THE PRIVATIZATION CAMPAIGN AN INA SPOKESWOMAN SAID MCCANN ERICKSON BEAT OUT FIVE OTHER AGENCIES FOR THE ACCOUNT AND WON A FINAL RUNOFF WITH PUBLICIS FCB/MAC IN FRANCE EURO RSCG WILL HANDLE THE IMMINENT PRIVATIZATION OF STATE CHEMICALPHARMACEUTICAL GROUP RHONEPOULENC SA EURO RSCG WHICH PUBLICIZED THE GROUP'S PARTIAL PRIVATIZATION LAST JANUARY WILL USE THE SAME TELEVISION CAMPAIGN SUPPLEMENTED WITH PRINT ADS SAID A SPOKESWOMAN FOR RHONEPOULENC RHONEPOULENC WILL SPEND FAR LESS THAN THE 50 MILLIONFRANC 85 MILLION BUDGET FOR THE RECENT SALE OF BANQUE NATIONAL DE PARIS THE SPOKESWOMAN SAID WE WANT IT TO BE A LOWPROFILE PRIVATIZATION BECAUSE WE'VE SEEN FROM RESEARCH THAT PEOPLE ARE INTERESTED IN BUYING US AND THE SHARES ARE LIKELY TO SELL LIKE HOT CAKES THE SPOKESWOMAN SAID RHONEPOULENC WILL ALSO CONDUCT REGIONAL ROADSHOWS AND PRODUCE BROCHURES FOR BANKS TO MARKET THE PRIVATIZATION MORE DIRECTLY SHE SAID FRENCH STATE OIL GROUP ELF AQUITAINE JUST HIRED FRENCH AGENCY ALICE TO HANDLE ITS 60 MILLIONFRANC PRIVATIZATION ACCOUNT ALICE WILL SHARE THE ACCOUNT WITH OMNIUM SUBSIDIARY INFORMATION DES SOCIETES WHICH WILL HANDLE FINANCIAL COMMUNICATIONS 9311010112 931101 INTERNATIONAL BRIEF BAYER AG GERMAN CHEMICAL FIRM SEES 20 DROP IN PRETAX PROFIT BAYER AG ONE OF GERMANY'S LARGEST CHEMICAL COMPANIES EXPECTS A 20 DROP IN ITS PRETAX PROFIT THIS YEAR HELMUT LOEHR CHIEF FINANCIAL OFFICER SAID HE MADE HIS REMARKS ON THE GERMAN TELEVISION PROGRAM TELEBOERSE MR LOEHR SAID IT WAS PREMATURE TO COMMENT ON THE 1993 DIVIDEND BUT SAID A HIGHER CASH PAYOUT IS BEING CONSIDERED IN LIGHT OF THE CHANGES IN THE CORPORATE TAX CODE BAYER PAID A DIVIDEND OF 11 MARKS 657 A SHARE LAST YEAR THE COMPANY INTENDS TO IMPLEMENT FURTHER EXTENSIVE SAVINGS MEASURES DURING 1994 TO IMPROVE PROFITABILITY HE SAID 9311010109 931101 LETTERS TO THE EDITOR EXPORT SUBSIDIES DESTROY FREE TRADE ANY STRATEGIST WILL TELL YOU THAT THE QUICKEST WAY TO END WAR IS TO BRING ALL PARTIES TO THE TABLE TO RESOLVE THE CAUSES OF CONFLICT JAMES BOVARD IS NO STRATEGIST HIS OCT 15 EDITORIALPAGE ARTICLE OUR WHEAT WAR WITH CANADA CONTAINED ERRONEOUS AND MISLEADING SUPPOSITIONS I WAS AMAZED THAT MR BOVARD WOULD CALL FOR THE ABOLITION OF OUR EXISTING FARM POLICIES RATHER THAN ADDRESS THE REAL CAUSE OF OUR WHEAT TRADE BATTLE WITH CANADA AND EUROPE HE IS CALLING FOR A CEASEFIRE IN THE HEAT OF THIS TRADE BATTLE HE MIGHT AS WELL YELL SURRENDER SINCE 1985 US SUBSIDIES PAID TO OUR WHEAT FARMERS HAVE BEEN REDUCED 50 WE HAVE CUT THE COST OF OUR TRADE BATTLE WITH CANADA AND EUROPE IF ALL GOVERNMENT PROGRAMS EXPERIENCED SIMILAR BELTTIGHTENING TAXPAYERS WOULD NOT BE ASKED TO SHELL OUT MORE TO REDUCE OUR BLOATED DEFICIT WHILE THE US HAS SLASHED ITS WHEAT SUBSIDIES CANADIAN AND EUROPEAN PRICE SUPPORTS HAVE INCREASED IN MY STATE OF SOUTH DAKOTA AGRICULTURE IS THE NUMBER ONE INDUSTRY ITS CONTINUED GROWTH IS ESSENTIAL TO THE STATE'S FUTURE AND EXPORTS ARE CRUCIAL TO THAT GROWTH MANY EXPORTS GO TO OUR NEIGHBORS TO THE NORTH AND SOUTH EXPANDED TRADE UNDER A NORTH AMERICAN FREE TRADE AGREEMENT WOULD BENEFIT SOUTH DAKOTA AND ALL STATES IF MR BOVARD IS LOOKING FOR A GOVERNMENT BUREAUCRACY TO BLAME FOR OUR WHEAT TRADE WAR I SUGGEST HE VISIT WITH THE MEMBERS OF THE CANADIAN WHEAT BOARD A MONOPOLISTIC MARKETING REGIME MY PRIMARY OBJECTIVE IS TO ACHIEVE PRICE TRANSPARENCY IN THE COMPLEX PRICING TACTICS OF THE CANADIAN WHEAT BOARD AND PUT AN END TO CANADA'S HIDDEN TRANSPORTATION SUBSIDIES ON THE WHEAT IT MOVES INTO THE US THE LACK OF PRICE TRANSPARENCY IS A STEALTH SUBSIDY MAKING IT IMPOSSIBLE TO DETERMINE THE EXTENT OF UNFAIR TRADE PRACTICES IN USE BY THE CANADIAN WHEAT BOARD FOR EXAMPLE CANADA TODAY HAS 76 OF THE MEXICAN WHEAT MARKET OUR NATION'S EXPORTS TO MEXICO HAVE DROPPED TO BELOW 25 FROM A HIGH OF 85 THE REASON CANADA'S STEALTH SUBSIDIES MR BOVARD LEAVES THE IMPRESSION THAT CANADA IS A FREETRADER GUESS AGAIN WHEN IT COMES TO WHEAT US OFFICIALS HAVE TRIED TO DETERMINE WHAT SUBSIDIES HAVE BEEN APPLIED TO CANADIAN WHEAT EXPORTS THEY CANNOT OBTAIN ACCESS TO CANADIAN PRICE SUPPORT SCHEMES THAT IS THE ISSUE THAT IS WHY THE DISPUTE SETTLEMENT PROCEDURES UNDER THE USCANADA FREE TRADE AGREEMENT CFTA RECENTLY HAVE COME UNDER FIRE THE BINATIONAL PANEL SYSTEM ESTABLISHED IN THE CFTA TO HEAR TRADE DISPUTES IS INADEQUATE AND BLATANTLY UNFAIR NEGOTIATIONS TO CORRECT AND STRENGTHEN THE DISPUTE SETTLEMENT PROCESS WOULD GO A LONG WAY TOWARD RESOLVING NORTH AMERICAN WHEAT TRADE PROBLEMS ULTIMATELY ANY FREE TRADE AGREEMENT MUST ENSURE AN EFFECTIVE AND ENFORCEABLE PROCESS TO RESOLVE TRADE DISPUTES THE ISSUE MR BOVARD FAILED TO GRASP IS THAT EXPORT SUBSIDIES UNDERMINE FREE TRADING PRINCIPLES IT IS NOT JUST A PROBLEM IN CANADA THE EUROPEAN COMMUNITY NATIONS HAVE MADE EXPORT SUBSIDIES AN ART FORM IT IS IN THE INTEREST OF ALL THE WESTERN NATIONS TO STOP THE EXORBITANT USE OF EXPORT SUBSIDIES THAT IS WHAT MUST BE ACHIEVED THROUGH NAFTA AND THE CURRENT GATT NEGOTIATIONS 9311010108 931101 BANKING CITICORP SEEKS NICHE AMONG RICH IN JAPAN BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO ON A CRISP SATURDAY NIGHT IN TOKYO'S SHINJUKU DISTRICT YUKIO NOUCHI GOES WHERE FEW JAPANESE HAVE GONE BEFORE STEPPING INTO A SMALL BRANCH OF CITIBANK JAPAN THE FREELANCE PHOTOGRAPHER WITHDRAWS MONEY FROM AN AUTOMATIC TELLER MACHINE HOURS AFTER ALL THE JAPANESE BANKS HAVE CLOSED THEIR ATMS THIS IS A REALLY USEFUL SERVICE FOR SOMEBODY LIKE ME SAYS MR NOUCHI TUCKING A SMALL PILE OF 10000YEN 9238 NOTES INTO HIS WALLET I USED MY CARD IN PARIS LAST WEEK TOO THE JAPANESE UNIT OF US BANKING GIANT CITICORP IS CARVING A SIGNIFICANT NICHE FOR ITSELF IN THE WORLD'S SECONDLARGEST ECONOMY FROM FOUR RETAIL BRANCHES AND AN ESTIMATED 20000 CUSTOMERS HERE THREE YEARS AGO CITIBANK HAS EXPANDED TO 19 RETAIL BRANCHES WITH MORE THAN 160000 CLIENTS INCLUDING ABOUT 24000 EXPATRIATES IN JAPAN BY CATERING TO JAPAN'S GROWING RANKS OF AFFLUENT INTERNATIONALIZED CITIZENS A RELATIVELY NEW CLASS IN JAPAN THE US BANK EXPECTS TO MAKE A PROFIT FOR ITSELF AT A TIME WHEN MOST JAPANESE BANKS ARE SHEEPISHLY SHUTTING RETAIL OFFICES AMID A SHARP ECONOMIC DOWNTURN WE'RE DEALING JUST WITH UPSCALE CUSTOMERS SAYS MASAMOTO YASHIRO HEAD OF CITICORP JAPAN A SUCCESSFUL JAPANESE RETAIL BANK NEEDS A CRITICAL MASS OF 300000 WE CAN DO IT WITH 150000 IF THE RELATIONSHIP IS DEEP ENOUGH HE EXPECTS CITIBANK'S JAPANESE NETWORK WHICH BOASTS A WIDE RANGE OF INTERESTBEARING FOREIGN CURRENCY ACCOUNTS TO BE PROFITABLE BY LATE 1995 SOME FIVE YEARS AHEAD OF ORIGINAL PLANS CITIBANK'S ALLNIGHT ATMS MAY NOT SOUND LIKE A MAJOR INNOVATION TO SOMEONE USED TO THE US SYSTEM BUT IT'S QUITE A CHANGE IN JAPAN WHERE BANKS ARE LESS USER FRIENDLY JAPANESE ATMS SHUT AT 7 PM ON WEEKDAYS AND EVEN EARLIER ON WEEKENDS ORDINARY ACCOUNTS PAY 022 INTEREST AND LOCAL BILLS ARE PAID THROUGH EXPENSIVE AND TIMECONSUMING BANKTOBANK TRANSFER PAYMENTS CITICORP'S 24HOUR AUTOMATIC TELLER MACHINES PROBABLY WON'T MAKE THE BANK A FORTUNE WHILE THE BANK CHARGES A STEEP 103 YEN 95 CENTS PER LATENIGHT TRANSACTION MR NOUCHI IS ONE OF ONLY FOUR CUSTOMERS IN THE SHINJUKU BRANCH OVER A 30MINUTE PERIOD BUT THE MACHINES ARE IMPORTANT FOR CITIBANK'S FULLSERVICE IMAGE ALONG WITH ACCOUNTS IN MOST MAJOR FOREIGN CURRENCIES AND A PLANNED SERVICE TO LET CLIENTS TRANSFER MONEY AMONG ACCOUNTS OVER THE PHONE TO CREATE A SUCCESSFUL PRESENCE IN HEAVILY BANKED JAPAN CITIBANK NEEDED TO OFFER MORE THAN JAPANESE BANKS DO MR YASHIRO SAYS UNLIKE CUSTOMERS IN SOUTHEAST ASIA AND SOUTH AMERICA THE JAPANESE DON'T SEE CITIBANK AS THE PREMIER BANK IT WAS A DIFFICULTY IN GETTING STARTED MR YASHIRO SAYS BUT ADDING THE EXTRA SERVICES ATTRACTED CLIENTS HE SAYS AND SUCH FACILITIES HAVE ALSO MADE THE BANK MUCH MORE PROFITABLE PER CONSUMER THAN A NORMAL JAPANESE RETAIL BANK TOO PROFITABLE ACCORDING TO SOME DISGRUNTLED CITIBANK CUSTOMERS IT'S A RIPOFF SAYS SATORU ASATO AN EXPATRIATE BOND TRADER IN TOKYO WHO SAYS HE HASN'T USED HIS CITIBANK ACCOUNT IN 18 MONTHS THEY CHARGE FOR EVERYTHING AND THEIR FOREIGN CURRENCY RATES ARE OUTRAGEOUS THE COST IS UNREASONABLE WHILE MOST JAPANESE RETAIL BANKS CONTINUE BUSINESS AS USUAL OTHER COMPANIES IN JAPAN HAVE ALSO STARTED TO NOTICE JAPAN'S WORKING WEALTHY AKIRA KIYOKAWA PRESIDENT OF NOMURA SECURITIES CO'S NEWLY FORMED TRUST BANKING SUBSIDIARY IS AIMING EVEN HIGHER THAN CITIBANK THERE ARE LOTS OF CLIENTS WITH ASSETS OF BETWEEN 10 BILLION 924 MILLION AND 30 BILLION YEN 2771 MILLION MR KIYOKAWA SAYS I KNOW 50 PEOPLE LIKE THAT MYSELF BUT THERE'S BEEN NO JAPANESE PRIVATE BANKING TO OFFER THEM PERSONAL FINANCIAL SERVICES NOMURA TRUST'S EMPLOYEES HAVE BEEN ORDERED TO BECOME LICENSED IN SECURITIES TAX ACCOUNTING AND REAL ESTATE AMONG OTHER AREAS SO FAR THE JAPANESE BANKS AREN'T FOLLOWING CITIBANK INTO 24HOUR BANKING JAPANESE SOCIETY IS CASHORIENTED SAYS A SPOKESWOMAN FOR THE FEDERATION OF BANKER'S ASSOCIATIONS OF JAPAN OUR TRADITION IS TO WITHDRAW MONEY DURING THE DAY JAPANESE BANKS THAT WANT TO INCREASE THEIR SERVICE HOURS ALSO FACE TECHNICAL PROBLEMS DAILY BILL PAYMENTS WHICH DURING BUSINESS HOURS OCCUPY THOUSANDS OF CLERKS AND TELLERS WITH HANDWRITTEN FORMS COMMAND A JAPANESE BANK'S COMPUTERS AT NIGHT WHILE ALL THE ACCOUNTS ARE SETTLED CITICORP TAPPING ITS EXPERIENCE IN THE US USES MUCH LESS PAPER THAN ITS JAPANESE COMPETITORS WE KNOW OUR CLIENTS POTENTIALLY NEED THE SERVICE BUT WE'VE GOT TO SHUT DOWN THE ACCOUNTS TO FIGURE OUT THE AUTOMATIC DEBTS SAYS KAZUO KONISHI A SPOKESMAN FOR SAKURA BANK LTD CITIBANK WHICH DOESN'T HAVE THE PERSONNEL HEADACHES THAT COME WITH JAPAN'S LIFETIME EMPLOYMENT SYSTEM HAS ANOTHER ADVANTAGE IN JAPAN COST CONTROL MR YASHIRO CLAIMS REVENUE AT THE BRANCHES IS GROWING AT 30 TO 35 A YEAR WHILE EXPENSES ARE FLAT I'VE GOT FEWER AND FEWER PEOPLE INVOLVED IN PAPERWORK THE BANKER SAYS WE HAD 600 PEOPLE IN OPERATIONS AND TECHNOLOGY IN 1991 NOW WE'VE GOT 360 THE BANK DID LEARN ONE THING FROM THE JAPANESE THOUGH THE CUTBACKS CAME THROUGH ATTRITION AND EARLY RETIREMENT NOT LAYOFFS 9311010107 931101 REAL ESTATE FOR SALE CHEAP LOTS NEAR MAIN ROADS THE HITCH THEY USED TO BE GAS STATIONS BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL TEMPTED GETTY PETROLEUM CORP HOPES SO THE JERICHO NYBASED PETROLEUM RETAILER HAS THE UNENVIABLE TASK OF SELLING MORE THAN 75 UNDERPERFORMING OR MOTHBALLED GAS STATIONS THAT HAVE TURNED OUT TO BE NEARLY IMPOSSIBLE TO SELL ON NOV 30 GETTY WILL CONDUCT WHAT IS PROBABLY THE FIRST EVER USEDGASSTATION AUCTION FOR MORE THAN A YEAR NOW GETTY HAS BEEN TRYING TO WEED OUT THE LESS DESIRABLE LESS PROFITABLE OF ITS 1200 STATIONS SAYS DOUG BAUGASS GETTY'S VICE PRESIDENT OF REAL ESTATE IT WAS A LONG OVERDUE PROCESS UNFORTUNATELY FOR GETTY MANY OF ITS LARGE COMPETITORS HAVE BEEN DOING THE SAME THING FOR NEARLY A DECADE BECAUSE PROFIT MARGINS AT THE PUMPS HAVEN'T RISEN MUCH SINCE THE 1970S COMPANIES ARE SHEDDING LOWVOLUME STATIONS IN FAVOR OF LARGE ONES BETWEEN 1972 AND 1987 MORE THAN 100000 STATIONS DISAPPEARED AND THEY'RE CURRENTLY CLOSING AT A RATE OF 150 A WEEK SO IT'S NOT SURPRISING THAT AFTER A YEAR OF MARKETING GETTY HASN'T FOUND TAKERS FOR ABOUT 75 OF THE 200 STATIONS GETTY DIDN'T WANT TO KEEP ITS OWN SALES STAFF HAS ALREADY TRIED TO SELL THE SITES TO THE MOST LOGICAL BUYERS OTHER GAS RETAILERS NOW GETTY IS TURNING TO THE SOLUTION THAT MANY REAL ESTATE MARKETERS CONSIDER THE LAST RESORT AUCTION THEY'RE TRYING SOMETHING TOTALLY DESPERATE SAYS GREAT FALLS VA PETROLEUM MARKETING CONSULTANT DONALD MCCOY WHO HEADED GETTY'S EAST COAST MARKETING 30 YEARS AGO ECHOING THE REACTION OF SEVERAL OTHER MARKETING CONSULTANTS WHEN YOU HAVE 1200 PROPERTIES YOU'RE GOING TO HAVE SOME DOGS MR BAUGASS CONCEDES FOR THE AUCTION WHICH WILL BE HELD AT THE ESSEX HOUSE HOTEL IN NEW YORK CITY AND CONDUCTED BY CARLTON PROPERTY AUCTIONS INC AND WEICHERT REALTORS GETTY IS SEEKING ENTREPRENEURS WHO CAN IMAGINE TILE WALLS AND OILSTAINED CONCRETE AS SOMETHING OTHER THAN A GAS STATION POTENTIAL BUYERS OR LEASERS MUST HAVE A 5000 CERTIFIED CHECK TO BID MR BAUGASS SAYS THE COMPANY HAS ALREADY SEEN FORMER STATIONS CONVERTED TO USED CAR LOTS FAST FOOD DRIVEINS AUTO REPAIR SHOPS PARKING LOTS A GARDEN SUPPLY CENTER A LAUNDROMAT A DRY CLEANER AND A TAXI STAND ONE EVEN BECAME A BEAUTY PARLOR GAS STATIONS ARE THE EASIEST THINGS IN THE WORLD TO CONVERT BECAUSE THEY'RE BASICALLY JUST A BOX SAYS EDWARD DELANY THE GETTY EXECUTIVE CHARGED WITH SELLING ITS MIDDLE ATLANTIC PROPERTIES A STRONG BOX AT THAT I HAVEN'T SEEN MANY FALLING DOWN HE SAYS THEY AREN'T THE KIND OF PLACES THAT TERMITES COULD GET TO UNLESS THEY EAT CONCRETE FORMER GAS STATION ARCHITECT AL KERTH WHO WROTE A BOOK ON GAS STATION CONVERSIONS SAYS THE PROPERTIES OFFER SEVERAL ATTRACTIONS CORNER LOTS PROXIMITY TO RETAIL STRIPS LOTS OF PARKING AND FAVORABLE ZONING THE MAIN RUB YEARS OF DELIVERY TRUCKS LETTING GASOLINE OVERFLOW THE UNDERGROUND TANKS INTO THE SOIL PLUS CONSTANT SLOSHING AND DRIPPING OF ALL KINDS OF ENVIRONMENTALLY UNFRIENDLY AUTOMOTIVE FLUIDS MOST STATES REQUIRE REMOVAL OF THE TANKS THEMSELVES AS WELL AS ANY CONTAMINATED SOIL AROUND THEM ALMOST EVERY STATION HAS HAD SOME DENT IN ITS ENVIRONMENTAL PURITY SAYS DENVERBASED GASOLINE MARKETING CONSULTANT HAROLD GRUESKEN WE'RE NOT TRYING TO SELL ANYONE A PIG IN A POKE INSISTS ROBERT BURRELL GETTY'S NEW ENGLAND SALES MANAGER WE WANT THEM TO BE AWARE OF THE CONDITION OF THE PROPERTY OTHERWISE IT MAY COME BACK TO HAUNT US GETTY PLANS TO GIVE ALL WINNING BIDDERS TIME TO GET THE PROPERTIES CHECKED OUT IF CONTAMINATION IS DISCOVERED GETTY WILL HAVE THE OPTION TO CLEAN IT UP INDEMNIFY THE BUYER AGAINST FUTURE LIABILITY OR CANCEL THE SALE DESPITE ALL THE DRAWBACKS THE STATIONS AREN'T GIVEAWAYS GETTY HAS SET MINIMUM BIDS RANGING FROM 50000 FOR A ONESIXTHACRE LOT WITH A TINY KIOSK IN SCHUYLERVILLE NY TO 1 MILLION FOR A CHOICE HALFACRE CORNER LOT IN PHILADELPHIA I HAPPEN TO THINK GAS STATIONS ARE THE MOST VALUABLE PIECES OF REAL ESTATE IN LONG ISLAND INSISTS BROKER EUGENE O'NEIL WHO SPECIALIZES IN SELLING GAS STATIONS FOR FARMINGDALE LONG ISLANDBASED MAXIMUM REALTY SO WHY COULDN'T HE FIND A BUYER FOR A BOARDEDUP CLAPBOARD GAS STATION IN WESTHAMPTON WHICH GETTY HAS NOW THROWN INTO THE AUCTION POOL THERE WERE A LOT OF PEOPLE INTERESTED IN THE SITE HE SAYS BUT YOU NEED PEOPLE WITH CASH BANKS ARE RELUCTANT TO LEND ON PROPERTIES WITH POTENTIAL ENVIRONMENTAL PROBLEMS WE RECOGNIZE THAT CASH IS A DIFFICULT COMMODITY TO COME BY NOW SAYS MR BAUGASS GETTY PLANS TO OFFER 70 FINANCING FOR QUALIFIED BUYERS FOR THOSE WHO DON'T HAVE THE MONEY TO BUY THE COMPANY WILL ACCEPT WINNING BIDS IN THE FORM OF 10YEAR LEASES WITH A PERCENTAGE OF THE BID TO BE PAID EACH YEAR AS RENT ALTHOUGH IT'S UNCLEAR HOW MANY PROPERTIES GETTY WILL BE ABLE TO UNLOAD AT THE AUCTION IT'S PROBABLY THE RIGHT THING TO TRY SAYS MR MCCOY THE CONSULTANT THEY'VE GOT EVERYTHING TO GAIN AND NOTHING TO LOSE 9311010106 931101 PETROCORP SELLS SHARES HOUSTON PETROCORP INC SAID IT COMPLETED AN OFFERING OF THREE MILLION COMMON SHARES AT 1050 EACH NET PROCEEDS TO THE COMPANY OF 178 MILLION WILL BE ADDED TO WORKING CAPITAL AND WILL BE AVAILABLE FOR POTENTIAL ACQUISITIONS OF OIL AND GAS PROPERTIES AND EXPLORATION AND DEVELOPMENT PROJECTS THE OFFERING CONSISTED OF 19 MILLION SHARES SOLD BY THE COMPANY AND 11 MILLION SHARES SOLD BY SHAREHOLDERS THE COMPANY WON'T RECEIVE ANY PROCEEDS FROM THE SALE OF SHARES BY THE SHAREHOLDERS THE COMMON STOCK WILL TRADE ON THE NASDAQ NATIONAL MARKET SYSTEM OPPENHEIMER & CO PAINEWEBBER INC AND JEFFRIES & CO FORM THE MANAGING UNDERWRITING GROUP PETROCORP IS ENGAGED IN THE EXPLORATION DEVELOPMENT MANAGEMENT AND ACQUISITION OF OIL AND GAS PROPERTIES IN NORTH AMERICA 9311010105 931101 LETTERS TO THE EDITOR WHERE ARE THE DOCTORS WE READ WITH INTEREST REP DICK ARMEY'S FLOW CHART OF THE CLINTON HEALTH CARE PLAN EDITORIAL PAGE OCT 13 BUT NOTICED ONE GLARING OMISSION PHYSICIANS ARE NOWHERE TO BE FOUND IN THE DIAGRAM IT SEEMS IRONIC THAT A HEALTH CARE PLAN DOES NOT INCLUDE THE ACTUAL PROVIDERS OF HEALTH CARE IN THE PRESIDENT'S PLAN WILL HEALTH CARE BE PROVIDED BY PHYSICIANS OR BUREAUCRATS IN THE FFS HMO OR PPO PLANS 9311010104 931101 EC PICKS FRANKFURT FOR BANKING CENTER OTHER KEY ISSUES ARE LARGELY AVOIDED BY PETER GUMBEL AND CHARLES GOLDSMITH STAFF REPORTERS OF THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY AGREED ON FRANKFURT AS THE SITE OF A NEW EUROPEAN MONETARY INSTITUTE WHICH WILL BEGIN OPERATIONS JAN 1 AS THE FORERUNNER OF A CENTRAL EUROPEAN BANK BUT AT A SPECIAL SUMMIT HERE THE GOVERNMENT LEADERS LARGELY DUCKED MOST OF THE OTHER KEY ISSUES FACING THEM THE FUTURE OF EUROPE'S BATTERED MONETARY SYSTEM THE GATT WORLDTRADE TALKS AND THE DIFFICULT QUESTION OF HOW TO REKINDLE ECONOMIC GROWTH IN A COMMUNITY WHOSE JOBLESS RATE IS EXPECTED TO TOP 12 NEXT YEAR MEANWHILE AN EC PLAN TO SET UP BIG NEW INVESTMENT FUNDS FOR INFRASTRUCTURE SPENDING HAS BEEN HELD UP FOR ALMOST A YEAR BY MAJOR BUREAUCRATIC AND POLITICAL HURDLES EC GOVERNMENTS DECIDED ON THE NEW FUNDS AT THEIR SUMMIT IN EDINBURGH SCOTLAND IN DECEMBER IN THE HOPE OF GIVING A MUCHNEEDED BOOST TO THEIR FLAGGING ECONOMIES AT THE SUMMIT SEVERAL GOVERNMENT LEADERS EXPRESSED DISAPPOINTMENT THAT SO LITTLE HAS HAPPENED AND PRESSED FOR THE DIFFICULTIES TO BE RESOLVED SWIFTLY THE FATE OF THE SOCALLED GROWTH INITIATIVE REFLECTS THE GAP BETWEEN RHETORIC AND REALITY IN THE EC THAT CONTINUES TO STRAIN ITS PUBLIC CREDIBILITY AT A TIME OF GROWING UNEMPLOYMENT AND ANEMIC OR NONEXISTENT GROWTH IN MOST MEMBER STATES THAT DIVIDE COULD BE SHOWN AGAIN WHEN THE EC COMMISSION UNVEILS AN ANXIOUSLY AWAITED WHITE PAPER ON COMPETITIVENESS AT A REGULAR SUMMIT IN BRUSSELS DEC 1011 THE PAPER WILL CALL FOR MORE FLEXIBLE LABOR MARKETS AND OTHER STEPS TO SPUR JOB CREATION BUT SUCH DIFFICULT MEASURES MUST BE TAKEN AT THE NATIONAL LEVEL AMID SIGNS THAT GOVERNMENTS DON'T HAVE THE STOMACHS FOR DISRUPTIVE LABOR DISPUTES LAST WEEK FOR EXAMPLE THE FRENCH GOVERNMENT BACKED DOWN SHEEPISHLY FROM AN AUSTERITY PLAN FOR AIR FRANCE AFTER WORKERS FROM THE LOSSMAKING STATE AIRLINE BLOCKED RUNWAYS AT SEVERAL AIRPORTS AFTER A LONG DEBATE THAT TOOK UP MOST OF THE ONEDAY SUMMIT EC GOVERNMENTS IN ADDITION TO THE FRANKFURT LOCATION AGREED ON THE LOCATION OF 10 OTHER LESSER EC INSTITUTIONS THE SUMMIT WAS CALLED TO MARK THE ENTRY INTO FORCE TODAY OF THE MAASTRICHT TREATY ON EUROPEAN UNION SO THE EC LEADERS LISTED AREAS IN BOTH FOREIGN AFFAIRS AND JUSTICE MATTERS IN WHICH THEY SHOULD COOPERATE MORE CLOSELY UNDER THE TREATY THE MUCHTOUTED GROWTH INITIATIVE WAS SUPPOSED TO HAVE PLAYED AN IMPORTANT ROLE THE INITIATIVE CONSISTS OF TWO MAIN PARTS A EUROPEAN INVESTMENT FUND OF 2 BILLION EUROPEAN CURRENCY UNITS 175 BILLION TO PROVIDE LOAN GUARANTEES FOR PROJECTS AMOUNTING TO MORE THAN 20 BILLION ECU AND A SEPARATE TEMPORARY LENDING FACILITY OF 8 BILLION ECUS THE MONEY WAS EARMARKED FOR BIG ROAD AND RAIL PROJECTS WITH EC GOVERNMENTS PUTTING UP AT LEAST 25 OF THE TOTAL BUT THE NEW INVESTM FUND HASN'T YET BEGUN TO OPERATE IT CAN ONLY START AFTER ALL EC GOVERNMENTS HAVE RATIFIED A CHANGE IN THE STATUTES OF THE EC'S LUXEMBOURGBASED EUROPEAN INVESTMENT BANK SO FAR HOWEVER ONLY IRELAND THE NETHERLANDS AND DENMARK HAVE RATIFIED THE CHANGE WHILE MOST OTHER PARLIAMENTS ARE NOW CONSIDERING NEW LEGISLATION ITALY GREECE AND PORTUGAL HAVEN'T EVEN BEGUN THE RATIFICATION PROCESS THE SUMMIT COMMUNIQUE EXPRESSED HOPE THAT THE RATIFICATION WOULD BE COMPLETED BY THE END OF THIS YEAR BUT SOME EC OFFICIALS SAID PRIVATELY THAT THE TIMETABLE SEEMED OVERLY OPTIMISTIC THE TEMPORARY LENDING FACILITY DOESN'T FACE THE SAME BUREAUCRATIC OBSTACLES BUT IT HAS RUN INTO POLITICAL DIFFICULTIES SOME MONEY HAS BEEN ASSIGNED FOR A NUMBER OF PROJECTS INCLUDING A NEW SUBWAY LINE IN LONDON AND A RAILWAY LINK IN DENMARK BUT THE INITIATIVES LAUNCHED SO FAR TAKE UP ONLY 3 BILLION ECU OF THE 8 BILLION ECU ALLOCATED MOST EC NATIONS HAVE BEEN RELUCTANT TO USE THE FACILITY BECAUSE THEY WOULD HAVE TO FINANCE PART OF THE PROJECTS THEMSELVES AT A TIME WHEN ALMOST ALL ARE TRYING TO CUT BACK ON GOVERNMENT SPENDING HEADS OF GOVERNMENT AGREED ON THE PRINCIPLES BUT THEIR FINANCE MINISTERS HAVE BEEN BLOCKING THE PRACTICE BECAUSE THEY WANT TO SAVE MONEY NOT SPEND MORE SAID ONE SENIOR FRENCH OFFICIAL AT THE BRUSSELS SUMMIT GOVERNMENT LEADERS DECIDED TO ENLARGE THE SCOPE OF THE FACILITY TO INCLUDE ENERGY PRODUCTION AND URBAN RENEWAL PROJECTS IN THE HOPE OF MAKING MORE USE OF THE FUNDS AVAILABLE THEY ALSO AGREED TO SIMPLIFY THE PROCEDURES SO THAT SMALL AND MEDIUMSIZE COMPANIES CAN BENEFIT 9311010103 931101 RECENT SEC FILINGS WASHINGTONTHE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION COFLEXIP AN INITIAL OFFERING OF 6740000 AMERICAN DEPOSITARY SHARES VIA CS FIRST BOSTON MORGAN STANLEY & CO AND HOWARD WEIL LABOUISSE FRIEDRICHS INC KENNAMETAL INC AN OFFERING OF UP TO 1715000 COMMON SHARES IN THE US AND ABROAD VIA GOLDMAN SACHS & CO AND MERRILL LYNCH & CO ICF KAISER INTERNATIONAL INC AN OFFERING OF 110 MILLION SENIOR SUBORDINATED NOTES DUE 2003 VIA DILLON READ & CO AND WERTHEIM SCHRODER & CO 9311010102 931101 CORRECTIONS & AMPLIFICATIONS NFL PROPERTIES THE NATIONAL FOOTBALL LEAGUE'S LICENSING ARM HAD 26 BILLION IN SALES LAST YEAR IN AN ARTICLE THURSDAY IT WAS INCORRECTLY REPORTED THAT THE COMPANY HAD 1 BILLION IN SALES SEE MARKETING & MEDIA FORGET QUARTERBACKS FOOTBALL'S NEW TEAM HAS ITS LOGO IN PLACE JUST AFTER CHARLOTTE NC WINS FRANCHISE THE BLACK PANTHER LEAPS ONTO HATS AND SHIRTS WSJ OCT 9311010101 931101 WESTINGHOUSE TO REDEEM DEBT PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID IT WILL REDEEM THE REMAINING 41 MILLION OF ITS 9 CONVERTIBLE SUBORDINATED DEBENTURES OUTSTANDING DUE AUG 15 2009 THE REDEMPTION DATE IS NOV 30 THE COMPANY SAID THE DEBENTURES WILL BE REDEEMED AT 1009 OF THE PRINCIPAL AMOUNT PLUS INTEREST ACCRUED FROM AUG 15 THROUGH THE REDEMPTION DATE OR 103575 FOR EACH 1000 PRINCIPAL AMOUNT INTEREST WILL STOP ACCRUING EFFECTIVE NOV 30 THE COMPANY SAID THE DEBENTURES ARE CONVERTIBLE INTO WESTINGHOUSE COMMON SHARES UNTIL THE CLOSE OF BUSINESS ON THE REDEMPTION DATE AT A CONVERSION PRICE OF 1550 A SHARE IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY WESTINGHOUSE CLOSED AT 1450 UNCHANGED 9311010100 931101 ECONOMY CONSUMERSPENDING RISE TOPS GAINS IN INCOME LIFTING VIEWS OF RECOVERY BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AMERICANS ARE INCREASING THEIR SPENDING FASTER THAN THEIR EARNINGS ARE RISING AND THAT HAS MADE MANY ECONOMISTS VERY UPBEAT ABOUT THE RECOVERY'S STRENGTH INCREASES IN PERSONAL CONSUMPTION HAVE ECLIPSED GAINS IN INCOME SINCE SPRING IN SEPTEMBER FOR INSTANCE AMERICANS SPENT 03 MORE THAN IN AUGUST AFTER ADJUSTMENTS FOR INFLATION WHILE THEIR INCOMES ROSE ONLY 01 THE COMMERCE DEPARTMENT SAID FRIDAY ALL TOLD SPENDING HAS JUMPED 22 SINCE APRIL WHILE INCOME HAS RISEN ONLY 14 THE RESULT HAS BEEN A QUITE NOTICEABLE DROP IN THE SAVINGS RATE DURING THAT PERIOD TO ROUGHLY 37 OF INCOME FROM 47 AS FAST AS INCOMES ARE GROWING AMERICANS ARE SPENDING THE MONEY OR EVEN FASTER SAYS SANDRA SHABER RETAIL ANALYST FOR THE WEFA GROUP IN SUBURBAN PHILADELPHIA LAURA TYSON WHO HEADS PRESIDENT CLINTON'S COUNCIL OF ECONOMIC ADVISERS SAYS THE TREND IS ONE OF THE SURE INDICATIONS THAT THE RECOVERY IS TAKING OFF IT SUGGESTS THAT CONSUMERS FEEL FAR MORE CONFIDENT ABOUT THE HEALTH OF THE ECONOMY THAN THE BLEAK ASSESSMENTS THEY GIVE IN OPINION POLLS AND THE CONSUMER'S MOOD MAY BE PERKING UP A BIT THE UNIVERSITY OF MICHIGAN'S CONSUMERCONFIDENCE INDEX SHOT UP 48 POINTS TO 827 DURING OCTOBER ACCORDING TO MARKET PARTICIPANTS WHO SAW THE REPORT AMERICANS' WILLINGNESS TO SPEND IS IMPORTANT TO THE SPEED OF THE RECOVERY SINCE CONSUMER OUTLAYS REPRESENT ABOUT TWOTHIRDS OF ECONOMIC GROWTH THE ECONOMY GREW AT A 28 ANNUAL RATE IN THE THIRD QUARTER QUITE MODEST BUT DRIVEN MAINLY BY CONSUMER PURCHASES OF DURABLE GOODS SUCH AS CARS AND HOME APPLIANCES WITHOUT THIS HAPPENING THE RECOVERY WOULD BE AT AN EVEN SLOWER PACE MS SHABER SAYS THERE ARE SEVERAL FACTORS AT WORK MOST OBVIOUS IS THAT INCOME GAINS HAVE BEEN RELATIVELY WEAK DURING THE RECOVERY WHILE SPENDING AFTER A ROCKY START HAS GOTTEN CONSIDERABLY STRONGER MANY ECONOMISTS BELIEVE THAT OVER THE LONG TERM A LOW SAVINGS RATE THREATENS THE ECONOMY'S ABILITY TO FINANCE CAPITAL INVESTMENT BUT MARK ZANDI CHIEF ECONOMIST OF REGIONAL FINANCIAL ASSOCIATES IN WEST CHESTER PA NOTES THAT THE MORTGAGEREFINANCING BOOM MAY BE DISTORTING THE SAVIMORTGAGE PAYMENTS GIVE PEOPLE MORE MONEY TO SPEND BUT THE MONEY DOESN'T REPRESENT NEW INCOME IN ANY EVENT THE SAVINGS RATE USUALLY DECLINES IN THE BEGINNING OF A RECOVERY IN A RECESSION PEOPLE SAVE MORE MONEY OUT OF FEAR ABOUT ECONOMIC PROSPECTS AND CONCERN ABOUT JOBS AS THE ECONOMY IMPROVES CONSUMERS BEGIN TO BUY THE THINGS THEY DEFERRED WHILE TIMES WERE HARD THE DIFFERENCE IN THIS RECOVERY IS THAT IT HAS TAKEN SO LONG TO REACH THIS SPENDING PHASE MORE THAN TWO YEARS BUT NOW SPENDING FOR THINGS OTHER THAN NECESSITIES HAS RISEN IN SIX OF THE PAST SEVEN QUARTERS THE INCREASED SPENDING HAS CAUSED CONCERN IS SOME CAMPS IN PART BECAUSE OF THE MANY UNIQUE FACTORS STILL PRESENT IN THIS RECOVERY SLOW JOB GROWTH SLOW ECONOMIC GROWTH AND BIG STRUCTURAL PROBLEMS THERE'S THE THOUGHT THAT CONSUMERS MAY BE DIPPING IN THEIR SAVINGS ONLY TO MAKE ENDS MEET SAYS MICHAEL MORAN CHIEF ECONOMIST OF DAIWA SECURITIES AMERICA INC IN NEW YORK BUT THE COMPOSITION OF SPENDING SUGGESTS OTHERWISE MR MORAN SEPARATED NECESSITIES SUCH AS FOOD MEDICAL CARE AND SHELTER FROM OTHER CONSUMPTION EXPENDITURES AND FOUND THAT DISCRETIONARY SPENDING IS VERY ROBUST THIS IS CERTAINLY NOT A SIGN OF DISTRESS MR MORAN SAYS CONSUMERS ARE SPENDING BECAUSE THEY WANT TO CARS ARE SOMETHING THAT CAN WAIT PART OF THE ABILITY OF CONSUMERS TO SPEND MORE IS THAT MANY AMERICANS HAVE GOTTEN THEIR DEBT DOWN TO A MORE MANAGEABLE LEVEL AND ARE FEELING MORE COMFORTABLE ABOUT SPENDING CONSUMER INSTALLMENT DEBT HAS BEEN EXPANDING SINCE THE BEGINNING OF THE YEAR SUGGESTING AMERICANS ARE NO LONGER SHY ABOUT TAKING OUT LOANS OR SPENDING WITH CREDIT CARDS OF COURSE THERE ARE PITFALLS IF THE JOB MARKET GETS WORSE OR ECONOMIC GROWTH SLOWS MANY AMERICANS COULD FIND THEMSELVES ONCE AGAIN IN THE DEBT TROUBLE THEY SCRATCHED SO HARD TO GET OUT OF JUST A FEW YEARS AGO BUT MANY ANALYSTS FEEL CONFIDENT THAT AMERICANS AREN'T GETTING BACK INTO CREDIT TROUBLE WE HAVEN'T BEEN HAVING A DESPERATIONTYPE BORROWING THE CONSUMER IS ACTING IN A NORMAL WAY SAYS NORTHERN TRUST CHIEF ECONOMIST ROBERT DEDERICK HERE IS THE COMMERCE DEPARTMENT'S LATEST REPORT ON PERSONAL INCOME THE FIGURES ARE AT SEASONALLY ADJUSTED ANNUAL RATES IN TRILLIONS OF DOLLARS 9311010098 931101 LETTERS TO THE EDITOR VERNON JORDAN IS STILL CIVIL RIGHTS CHAMPION YOUR ARTICLE ON VERNON E JORDAN JR FIRST PAL OF THE PRESIDENT POLITICS & POLICY SEPT 10 ASSERTED THAT MR JORDAN'S CIVILRIGHTS WORK ENDED YEARS AGO WHEN HE LEFT THE PRESIDENCY OF THE NATIONAL URBAN LEAGUE NOTHING COULD BE FURTHER FROM THE TRUTH VERNON JORDAN REMAINS AT THE CUTTING EDGE OF CIVILRIGHTS ISSUES IN THE PITCHED BATTLE TO PASS THE 1991 CIVIL RIGHTS ACT HE WAS INVOLVED AT EVERY TURN ARGUING WITH THE PRESIDENT THE WHITE HOUSE STAFF AND THE JUSTICE DEPARTMENT LINING UP CRITICAL VOTES IN THE HOUSE AND SENATE AND HELPING TO REASSURE BUSINESS LEADERS HIS WISE COUNSEL PROPERLY LAUDED BY FORMER AMBASSADOR STRAUSS IS ALWAYS AVAILABLE TO AND SOUGHT AFTER BY FELLOW CIVILRIGHTS ACTIVISTS HE IS A PRODIGIOUS FUNDRAISER FOR OUR ORGANIZATIONS AND OTHER CIVILRIGHTS GROUPS HIS INVOLVEMENT ON CORPORATE BOARDS HAS OPENED DOORS FOR US THAT WE COULD NEVER HAVE FOUND WITHOUT HIM IN TURN WE SHARE OUR VIEWS ON CRUCIAL CIVILRIGHTS ISSUES WITH MR JORDAN URGING HIM TO PRESS HIS COLLEAGUES IN CORPORATE AMERICAN AND GOVERNMENT TO DO THEIR PART TO ENSURE EQUAL JUSTICE UNDER LAW HE HAS NOTHING PERSONALLY TO GAIN FROM THIS INVOLVEMENT AND HE NEVER HESITATES TO SPEND HIS OWN POLITICAL CAPITAL ON CAUSES FROM WHICH NEITHER HE NOR HIS CLIENTS STAND TO PROFIT THIRTY YEARS AGO NO BLACK MAN COULD HAVE ACHIEVED IN THE LEGAL OR CORPORATE COMMUNITY POSITIONS MR JORDAN HOLDS TODAY NO ONE CAN DENY THAT THE MANNER IN WHICH HE LEVERAGES HIS PRESENCE IN THE BOARD ROOMS WELL SERVES THE INTERESTS OF AFRICANAMERICANS YOUR ARTICLE ON VERNON JORDAN CONTAINED COMMENTS BY ME THAT WERE SET IN A NEGATIVE CONTEXT RATHER THAN THE POSITIVE CONTEXT IN WHICH THEY WERE INTENDED MY DISCUSSION WAS ESSENTIALLY ABOUT POWER AND THE HISTORICALLY IMPORTANT FACT THAT NOT SINCE BOOKER T WASHINGTON HAS AN AFRICANAMERICAN BEEN IN SUCH CLOSE PROXIMITY TO PRESIDENTIAL POWER AND TRUSTED BY THE PRESIDENT YET INDEPENDENT OF HIM AT THE SAME TIME I ATTEMPTED TO INDICATE THAT ALTHOUGH SUCH ACCESS TO POLITICAL INFLUENCE GIVES ONE THE OPPORTUNITY TO BROKER RACIAL INTERESTS MR JORDAN'S UNIQUE POSITION MEANS THAT HE DOES NOT HAVE TO DO THIS AND APPEARS NOT TO HAVE ATTEMPTED IT RATHER HIS ROLE RESEMBLES THAT OF OTHER MAJOR WHITE WASHINGTON POWER BROKERS WHO HAVE TRADITIONALLY ADVISED PRESIDENTS FROM THE OUTER CIRCLE OF INFLUENCE WHERE REAL POLITICS OFTEN RESIDES TO THE EXTENT THAT THE ARTICLE QUESTIONS MR JORDAN'S RACIAL COMMITMENT I CERTAINLY HAD NOT INTENDED TO DO SO BUT TO MAKE THE POINT THAT HIS RELATIONSHIP WITH CLINTON TRANSCENDED RACE IN A VERY IMPORTANT WAY 9311010097 931101 INTERNATIONAL OLIVETTI AT RISK AS CHAIRMAN FACES WARRANT FOR ARREST BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN THE FUTURE OF ING C OLIVETTI & CO IS UNCERTAIN AFTER ROME MAGISTRATES ISSUED AN ARREST WARRANT FOR THE COMPANY'S CHAIRMAN AND CONTROLLING SHAREHOLDER CARLO DE BENEDETTI ON CORRUPTION CHARGES AN OLIVETTI SPOKESMAN YESTERDAY SAID MR DE BENEDETTI IS ON VACATION AT AN UNDISCLOSED LOCATION OUTSIDE OF ITALY HIS LAWYER SAID HE IS READY TO TURN HIMSELF IN ONCE PROSECUTORS SCHEDULE A DATE FOR QUESTIONING ROME MAGISTRATES ORDERED MR DE BENEDETTI'S ARREST ON CHARGES RELATING TO 106 BILLION LIRE 65 MILLION IN ALLEGED KICKBACKS PAID BY OLIVETTI TO GOVERNMENT OFFICIALS IN EXCHANGE FOR CONTRACTS THE DEALS INVOLVE TYPEWRITERS AND COMPUTEREQUIPMENT CONTRACTS TO THE POST MINISTRY AND STATE RAILWAY AUTHORITY BETWEEN 1983 AND 1991 MR DE BENEDETTI THE MOST PROMINENT BUSINESS PERSONALITY TO BE STUNG BY AN ARREST WARRANT IN ITALY'S CORRUPTION SCANDALS ADMITTED PAYING KICKBACKS TO MILAN PROSECUTORS IN MAY AT THE TIME HE CALLED THE GOVERNMENTCONTRACTS SYSTEM A RACKET WHERE BUSINESS WAS FORCED TO PAY KICKBACKS TO WIN ORDERS JURISDICTION FOR THE CASE WAS TRANSFERRED FROM MILAN TO ROME IN THE SUMMER NOW ROME MAGISTRATES SAY THE NEW CHARGES INCLUDE MORE INCIDENTS THAN MR DE BENEDETTI ORIGINALLY ADMITTED AND INVOLVE HIS ACTIVE ROLE IN SOLICITING BUSINESS THROUGH BRIBES RATHER THAN HIS BEING A VICTIM OF POLITICAL EXTORTION MR DE BENEDETTI'S LAWYER MARCO DE LUCA CALLED THE ARREST WARRANT COMPLETELY UNJUSTIFIED THE ARREST OF A PERSON WHO HAS DECLARED AND PROVEN HIS AVAILABILITY TO COLLABORATE WITH THE JUDICIAL AUTHORITY IS A VERY SERIOUS FACT HE SAID FINANCIAL ANALYSTS SAID THE LATEST TWIST IN THE ITALIAN SCANDALS COULD HURT OLIVETTI'S FUTURE IF MR DE BENEDETTI GOES TO PRISON ALTHOUGH THE STOCK MARKET HAS COME TO IGNORE EXECUTIVE ARRESTS IN ITALY MR DE BENEDETTI IS BOTH THE CONTROLLING SHAREHOLDER OF OLIVETTI AND A HANDSON MANAGER WHOSE INFLUENCE IS STRONGLY FELT AT THE COMPANY SAID LORENZO COLUCCI ITALY ANALYST WITH COUNTY NATWEST SECURITIES LTD IN LONDON 9311010095 931101 WHO'S NEWS EXECUTIVE RECRUITER SCORED MAJOR COUP BY ENTICING MOTOROLA'S FISHER TO KODAK BY JULIE AMPARANO LOPEZ AND JOANN S LUBLIN STAFF REPORTERS OF THE WALL STREET JOURNAL GEORGE MC FISHER STUNNED THE WORLD LAST WEEK BY ANNOUNCING HIS DEPARTURE FROM MOTOROLA INC TO RUN EASTMAN KODAK CO BUT HIS JOURNEY TO KODAK ACTUALLY BEGAN A YEAR AGO WHEN HE MET EXECUTIVE RECRUITER GERARD R ROCHE THE COURTSHIP PROVED LONG AND ARDUOUS IN FACT JUST DAYS BEFORE KODAK'S ANNOUNCEMENT LATE WEDNESDAY THE FORMER MOTOROLA CHAIRMAN AND CHIEF EXECUTIVE OFFICER WAS UNCERTAIN WHETHER HE SHOULD TAKE THE TOP KODAK JOB HIS FAMILY'S OPPOSITION TO A MOVE TO ROCHESTER NY ONLY EIGHT MONTHS AFTER THEIR PURCHASE OF A 25 MILLION DREAM HOUSE IN SUBURBAN CHICAGO NEAR MOTOROLA'S SCHAUMBURG ILL HEADQUARTERS MADE MR FISHER CONSIDER REJECTING KODAK'S LUCRATIVE OFFER FRIENDS SAY MR ROCHE CHAIRMAN OF HEIDRICK & STRUGGLES INC DECLINED TO COMMENT ABOUT THE KODAK SEARCH BUT MR ROCHE'S LONGSTANDING RELATIONSHIP WITH MR FISHER APPARENTLY HELPED HIM WOO AN EXECUTIVE WHOM MANY BELIEVED COULDN'T BE DISLODGED FROM MOTOROLA ACCORDING TO OTHER RECRUITERS AND INDIVIDUALS FAMILIAR WITH THE SEARCH THE RECRUITER'S SUCCESSFUL COURTSHIP CAPPED HIS STRING OF BLUECHIP CEO PLACEMENTS DURING THE PAST 11 MONTHS IT WILL ALSO HELP GIVE MR ROCHE WHAT HE EXPECTS TO BE HIS BEST YEAR EVER FINANCIALLY WHILE HE WON'T SAY WHAT HE'LL MAKE FROM THE PLACEMENT OF MR FISHER EXECUTIVE RECRUITERS TYPICALLY CHARGE ONETHIRD OF AN EXECUTIVE'S FIRSTYEAR SALARY AND MR ROCHE SAYS HE EXPECTS TO EARN IN EXCESS OF 1 MILLION THIS YEAR MR ROCHE'S PURSUIT OF MR FISHER BEGAN IN NOVEMBER 1992 AMERICAN EXPRESS CO HAD ASKED THE RECRUITER TO HELP IT FIND A NEW CHIEF EXECUTIVE MR FISHER AN AMERICAN EXPRESS OUTSIDE DIRECTOR SERVED ON THE BOARD'S SEARCH COMMITTEE DURING THE THREEMONTH HUNT THE TWO MEN SPENT HOURS DISCUSSING THE SEARCH ON SEVERAL OCCASIONS THEY DINED TOGETHER GIVING MR ROCHE AN OPPORTUNITY TO GET TO KNOW MR FISHER QUITE WELL ONE AMERICAN EXPRESS DIRECTOR RECALLS BY THE TIME HE COMPLETED THE AMERICAN EXPRESS SEARCH LAST WINTER MR ROCHE WAS ENAMORED ONE DAY I'M GOING TO PLACE GEORGE FISHER MR ROCHE VOWED LAST FEBRUARY AS HE GAZED AT THE CHRYSLER BUILDING FROM A PARK AVENUE OFFICE CROWDED WITH MEMORABILIA OF HIS 30YEAR RECRUITING CAREER I HAVE A FANTASY OF PUTTING GEORGE IN A NEW CHALLENGE HE SAID AT THAT TIME THE AMERICAN EXPRESS SEARCH GAVE MR ROCHE VALUABLE INSIGHTS INTO MR FISHER INDIVIDUALS FAMILIAR WITH THE SEARCH SAY FOR INSTANCE THE RECRUITER LEARNED THAT THE EXECUTIVE WAS AN EXTREMELY PRIVATE PERSON WHO REQUIRED ABSOLUTE SECRECY ONE MENTION IN THE PRESS COULD SPOOK HIM INTO BREAKING OFF ANY TALKS ABOUT LEAVING MOTOROLA ROBERTO C GOIZUETA HEAD OF KODAK'S SEARCH COMMITTEE AND COCACOLA CO CHAIRMAN AND CEO ALSO INSISTED ON TOTAL SECRECY DURING THE HUNT FOR KODAK'S NEW CHIEF ACCORDING TO ONE KODAK OUTSIDE DIRECTOR SO TIGHT WAS THE LID THAT THIS DIRECTOR SAYS MANY KODAK BOARD MEMBERS WHO WEREN'T ON THE SEARCH COMMITTEE DIDN'T LEARN ABOUT MR FISHER'S CANDIDACY UNTIL THE DAY BEFORE KODAK NAMED HIM CHAIRMAN LAST WEEK MR ROCHE HAD ALREADY PRESENTED SEVERAL OTHER CANDIDATES TO THE BOARD PUBLICITY MAY HAVE FOILED ANOTHER ATTEMPT BY MR ROCHE TO LURE MR FISHER AWAY FROM MOTOROLA WHEN THE 62YEAROLD RECRUITER WAS SCOUTING FOR A NEW CEO FOR INTERNATIONAL BUSINESS MACHINES CORP LAST WINTER HE TRIED TO PERSUADE MR FISHER TO CONSIDER THAT POST ACCORDING TO AN IBM DIRECTOR MR FISHER'S NAME SURFACED IN PRESS ACCOUNTS ABOUT THE IBM SEARCH THE LOWKEY EXECUTIVE WHO SHUNS PUBLICITY PROBABLY WAS TURNED OFF BY SUCH COVERAGE SUGGESTS KAI LINDHOLST A FISHER ACQUAINTANCE AND MANAGING PARTNER IN CHICAGO FOR SWISS RECRUITERS EGON ZEHNDER INTERNATIONAL MR FISHER FINALLY BACKED AWAY FROM THE BIG BLUE POST BUT NOT UNTIL AFTER HE HAD BECOME A FINALIST THE IBM BOARD MEMBER SAYS SO DESPITE MR FISHER'S REJECTION OF THE IBM FEELERS MR ROCHE WAS DETERMINED TO ATTRACT HIM TO THE KODAK JOB RIVAL RECRUITERS SAY MR ROCHE TOUTED THE CHALLENGE OF BUILDING A COMPANY AND ALSO PUSHED KODAK'S POTENTIAL TO BECOME AN INFORMATION HIGHWAY ACCORDING TO PEOPLE FAMILIAR WITH THE SEARCH AT THE CEO LEVEL PEOPLE AREN'T SO CONCERNED ABOUT MONEY THEY WANT TO MAKE A DIFFERENCE MR ROCHE HAS SAID IN PREVIOUS INTERVIEWS ULTIMATELY THAT CHALLENGE MAY HAVE PERSUADED MR FISHER TO OVERCOME HIS FAMILY'S OBJECTIONS AND ACCEPT THE KODAK OFFER INDEED MR FISHER SAID IN AN INTERVIEW LAST WEEK THAT HE LAY AWAKE FOR TWO NIGHTS THINKING ABOUT TRANSFORMING KODAK INTO A LEADER IN THE ELECTRONIC AGE BUT BIG MONEY ALSO PLAYED A BIG ROLE IN CLINCHING THE KODAK DEAL MR FISHER WAS WELLPAID AT MOTOROLA HE EARNED 15 MILLION IN SALARY AND BONUSES LAST YEAR AND EXERCISED STOCK OPTIONS WITH A NET REALIZED VALUE OF 37 MILLION IN ADDITION HE HAD UNEXERCISED OPTIONS VALUED AT 64 MILLION WITH KODAK HE NEGOTIATED A COMPENSATION PACKAGE THAT CONTAINS A LUCRATIVE STOCKOPTION DEAL THE STOCK PACKAGE IS PRESENTLY VALUED AT 50 MILLION TO 75 MILLION ACCORDING TO PEOPLE CLOSE TO MR FISHER BUT ONE OTHER FACTOR MAY HAVE HELPED MR ROCHE TO SNAG MR FISHER IT'S ALL ABOUT BEING AT THE RIGHT PLACE AT THE RIGHT TIME MR ROCHE HAS SAID IN RECOUNTING PAST RECRUITING SUCCESSES IF THE TIMING IS WRONG YOU HAVEN'T GOT A DEAL 9311010094 931101 PARALLEL PETROLEUM TEXAS WELL MIDLAND TEXAS PARALLEL PETROLEUM CORP SAID ITS SECOND CANYON REEF DISCOVERY WELL THE CORNING LOUDAMY 291 FLOWED AT A CALCULATED RATE OF 658 BARRELS OF OIL AND THREE MILLION CUBIC FEET OF NATURAL GAS PER DAY ON A 16/64INCH CHOKE BASED ON THESE RESULTS PARALLEL PLANS TO SET PRODUCTION AT ABOUT 800000 CUBIC FEET OF NATURAL GAS PER DAY PLUS ASSOCIATED OIL WHICH IS ESTIMATED AT 100 BARRELS PER DAY THE WELL IS SHUTIN PENDING THE EXECUTION OF A DEFINITIVE GAS CONTRACT PARALLEL OWNS A 60 WORKING INTEREST IN THE WELL WHICH IS LOCATED IN THE HORSESHOE ATOLL AREA OF HOWARD COUNTY TEXAS 9311010092 931101 INDUSTRY FOCUS BETS ON MEDIA COMMUNICATIONS INVESTING ARE CAUTIOUS MONEY MANAGERS SEE DAWNING ERA OF INTERACTIVITY MULTIMEDIA AS A GAMBLE BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL SCOTTSDALE ARIZ THE AIR WAS THICK WITH CAUTION AND CAVEATS AT THE ANNUAL BEAR STEARNS & CO CONFERENCE ON INVESTING IN MEDIA AND COMMUNICATIONS WITH TENS OF BILLIONS OF DOLLARS TO BET ON THE MEDIA AND COMMUNICATIONS BUSINESSES SEVERAL HUNDRED MONEY MANAGERS FLOCKED HERE LAST WEEK TO THE SUNSPLASHED LUXURY OF THE PHOENICIAN RESORT TO HEAR ABOUT THE HOTTEST INVESTMENT PROSPECTS IN CABLE TELEVISION TELECOMMUNICATIONS AND HOLLYWOOD SOME OF THE MOST INFLUENTIAL MEDIA AND COMMUNICATIONS EXECUTIVES AND THE SAVVIEST INVESTORS IN THOSE INDUSTRIES WAXED ELOQUENTLY ABOUT THE DAWNING ERA OF INTERACTIVITY ELECTRONIC SUPERHIGHWAYS AND MULTIMEDIA ENTERTAINMENT BUT FEW COULD PREDICT WHETHER CONSUMERS WOULD BUY INTO THE REVOLUTION OTHERS BEMOANED THE GROWING CONCENTRATION OF POWER IN THE HANDS OF A FEW MEGACOMPANIES SOME WORRIED THAT STOCKS IN THE GROUPS ARE ALREADY HYPERINFLATED WHILE OTHERS RAISED DOUBTS ABOUT WHETHER THE POOL OF TALENT WOULD BE SUFFICIENT TO MAKE IT ALL HAPPEN FOR PEOPLE WHO STILL WANT TO BUY STOCKS IN THESE GROUPS PRACTICE SAFE INVESTING WARNED ONE PANELIST MONEY MANAGER RICHARD REISS JR DALLAS CORSER A PORTFOLIO MANAGER FOR LYNCH & MAYER WHICH MANAGES A 5 BILLION PILE OF CASH SAID EVEN THE PLAYERS ON THE FRONT LINE END UP SAYING THEY DON'T KNOW WHERE IT'S ALL COMING OUT ADDED ONE PRIVATE INVESTOR IT'S DIFFICULT TO CHOOSE WHERE TO INVEST YOU ARE HEARING A WHOLE LOT OF HOT AIR NOW THINGS ARE HYPED MOST PARTICIPANTS ACCEPTED AS AN ARTICLE OF FAITH THAT BELL ATLANTIC CORP'S PROPOSED ACQUISITION OF TELECOMMUNICATIONS INC AND OTHER CABLEPHONE COMPANY MERGERS LIKELY TO COME WILL GIVE BIRTH TO A SYSTEM OF 500CHANNEL INTERACTIVE TV PLUS PHONE SERVICE BUT TURNING SUCH INNOVATIONS INTO VIBRANT BUSINESSES THAT WILL PROVIDE BIG RETURNS TO INVESTORS ISN'T A GIVEN SEVERAL PANELISTS FOR EXAMPLE SAID THAT IN ORDER TO DRAW LARGE ENOUGH AUDIENCES TO BE SUCCESSFUL THE NEW NETWORKS THAT WILL FILL UP ALL THOSE CHANNELS MUST ESTABLISH THEMSELVES AS NATIONAL BRANDS THUS FAR ONLY A FEW SUCH AS VIACOM INC'S MTV AND TIME WARNER INC'S HBO HAVE BEEN ABLE TO ACCOMPLISH THIS HOWEVER BRANDING IS CRITICAL IF YOU'RE GOING TO BUILD A BUSINESS SAID RONALD LIGHTFOOT THE FORMER CHIEF OPERATING OFFICER OF THE PRODUCTION COMPANY SPELLING ENTERTAINMENT INC AFTER LISTENING TO A PANEL ON THE FUTURE OF PROGRAMMING SERVICES THE FLIP SIDE OF 500 CHANNELS IS THAT THERE'S AN EXTRAORDINARY SCARCITY OF PROGRAMMING AND THERE ARE VERY FEW PEOPLE WHO CAN CRAFT THE PROGRAMMING SAID PANELIST JAY KREIGAL SENIOR VICE PRESIDENT OF CBS INC SOME PARTICIPANTS SUGGESTED THAT THE SUPERCARRIERS CREATED BY THE MERGERS BETWEEN CABLETV AND PHONE COMPANIES WHILE OVERFLOWING WITH FINANCIAL RESOURCES WON'T KNOW HOW TO OPERATE IN A COMPETITIVE WORLD EITHER CONVERGENCE ISN'T A WIN/WIN SAID MR REISS THE MONEY MANAGER BOTH CABLE AND PHONE COMPANIES ARE MONOPOLIST NEITHER IS GEARED UP FOR COMPETITION ULTIMATELY THE FATE OF INTERACTIVE TV WITH ITS PROMISE OF GAMES SHOPPING AND MOVIES AT THE PUSH OF A BUTTON RESTS IN CONSUMERS' HANDS THE MONEY MANAGERS WERE TOLD THE QUESTION IS WHAT ARE THEY GOING TO SPEND AND WHAT ARE THEY GOING TO SPEND IT ON DECLARED CARSON COLE OF FROLEY REVY INVESTOR CO WHICH SPECIALIZES IN CONVERTIBLE SECURITIES HE WARNED THAT UNTIL CONSUMER SENTIMENT IS CLEARER INVESTORS SHOULD BE AWARE OF THE RISKS DON'T GET SUCKED INTO THE EXCITEMENT OF THE RAPID CHANGES AND MERGER MANIA HE ADDED UNDERSCORING THE PIVOTAL ROLE OF VIEWERS ANOTHER PARTICIPANT JOHN HENDRICKS CHIEF EXECUTIVE OF DISCOVERY COMMUNICATIONS INC NOTED POINTEDLY THAT CONSUMERS WERE THE ONLY INTERESTED PARTY ABSENT FROM THE CONFERENCE DESPITE THE NOTES OF CAUTION MANY PARTICIPANTS APPARENTLY WERE ABLE TO HARVEST A WINDFALL AFTER AN UPBEAT PRESENTATION BY EXECUTIVES OF THE HOMESHOPPING COMPANY CUC INTERNATIONAL INC MR COLE RUSHED OUT TO PHONE IN A BUYORDER FOR SHARES OF CUC BY AFTERNOON THE SHARES HAD ALREADY GAINED 25 CENTS HE SAID PEOPLE HEAR THE PRESENTATIONS GO BERSERK AND COME OUT HERE TO MAKE PHONE CALLS HE SAID AS A LINE FORMED AT THE PUBLIC PHONES ANOTHER CUC FAN SHARI BURNS OF PARAGON INVESTMENTS IN SAN FRANCISCO SAID IF YOU CAN COME AWAY WITH ONE GOOD IDEA IT'S WORTHWHILE TO COME TO A CONFERENCE LIKE THIS CRAIG K BOICE CAME TO PROWL FOR BUSINESS WITH AN EVERREADY SMILE THE NEW YORK BUSINESSDEVELOPMENT CONSULTANT SAID HIS SPECIALTY WAS COUNSELING CORPORATE COUPLES IN THE MEDIA AND COMMUNICATIONS FIELD THE TELEPHONE COMPANIES AND MEDIA COMPANIES HAVE FIGURED OUT HOW TO GET MARRIED BUT NOT HOW TO LIVE TOGETHER HE SAID THEY DON'T UNDERSTAND WHAT CUSTOMERS WANT WHAT CUSTOMERS WOULD BE WILLING TO PAY FOR OR WHAT WOULD COUNT AS A COMPETITIVE ADVANTAGE AMID THE DIZZYING TRANSFORMATIONS NOW OCCURRING IN THE TELECOMMUNICATIONS BUSINESS EVEN SOME INDUSTRY HEAVYWEIGHTS FELT COMPELLED TO JOURNEY HERE FOR WISDOM DARTING ABOUT THE GRAND HALLWAY OUTSIDE THE CONFERENCE THEATER WALT DISNEY CO CHAIRMAN MICHAEL EISNER WAS ONE OF THE FEW TOP EXECUTIVES WHO HADN'T BEEN SCHEDULED TO APPEAR AS A PANELIST I CAME TO ASSIMILATE INFORMATION AND TO TRY TO UNDERSTAND WHAT THE SOPHISTICATED THINKERS ARE TALKING ABOUT HE SAID A CAP BEARING THE LOGO OF DISNEY'S MIGHTY DUCKS HOCKEY TEAM PERCHED ATOP HIS HEAD WE WANT TO UNDERSTAND THE DISTRIBUTION CHANNELS ALTHOUGH DISNEY HAS STEADFASTLY STUCK TO PRODUCING CONTENT MOVIES TV AND CABLE PROGRAMMING AND BOOKS HE SAID NOTHING IS RULED OUT WHEN ASKED IF HE WOULD CONSIDER A STRATEGIC PARTNERSHIP WITH A CABLE OR PHONE COMPANY BEAR STEARNS'S DESERT POW WOW ALSO PROVED TO BE NEUTRAL TURF FOR FORMER AND CURRENT ADVERSARIES MR EISNER AND TIME WARNER CHAIRMAN GERALD LEVIN CHATTED AMIABLY IN THE HALLWAY APPARENTLY HAVING PATCHED UP AN UGLY PUBLIC RIFT THAT OCCURRED MONTHS AGO OVER SOME TOUGH ADS THAT TIME WARNER'S SIX FLAGS AMUSEMENT PARKS HAD FIRED AT DISNEY'S THEME PARKS IN A LUNCHEON ADDRESS TO THE CONFERENCE MR LEVIN COMPLIMENTED MR EISNER ON THE JOB HE HAS DONE AT DISNEY IN ADDRESSING THE CONFERENCE VIACOM CHAIRMAN SUMNER REDSTONE LIKEWISE SIDESTEPPED AN OPPORTUNITY TO BASH AN ADVERSARY TCI'S CHIEF EXECUTIVE JOHN MALONE WHOM HE HAS TARGETED AS HIS ARCHRIVAL IN THE BATTLE FOR PARAMOUNT COMMUNICATIONS INC MR MALONE WHO IS BACKING A RIVAL BID BY QVC NETWORK INC FOR PARAMOUNT DIDN'T ATTEND THE CONFERENCE ALTHOUGH VIACOM HAS SUED TCI IN THE TAKEOVER BATTLE AND LABELED MR MALONE A MONOPOLIST MR REDSTONE TOLD THE MONEY MANAGERS THAT HE RESPECTED THE CABLETELEVISION EXECUTIVE JOHN HAS MADE A LOT OF PEOPLE MONEY MR REDSTONE SAID ADDING IN EFFECT THAT ALL IS FAIR IN LOVE AND WAR SPELLING ENTERTAINMENT INC'S FORMER CHIEF OPERATING OFFICER IS RONALD LIGHTSTONE IN YESTERDAY'S INDUSTRY FOCUS ARTICLE ABOUT INVESTING IN MEDIA AND COMMUNICATION COMPANIES MR LIGHTSTONE'S NAME WAS MISSTATED 9311010091 931101 CARNAUDMETALBOX SA PURCHASE PARIS CARNAUDMETALBOX SA SAID IT ACQUIRED A MAJORITY INTEREST IN A NEW COMPANY THAT WILL TAKE OVER THE METAL PACKAGING BUSINESS OF GW SOHLBERG A FINNISH COMPANY FINANCIAL DETAILS WEREN'T DISCLOSED WITH ANNUAL SALES OF 150 MILLION FRENCH FRANCS 256 MILLION THE NEW COMPANY TO BE CALLED GWS METALLIPAKKAUS OY IS A FINNISH SUPPLIER OF METAL CANS FOR FOOD PAINT AND INDUSTRIAL PRODUCTS INCLUDING STEEL DRUMS CARNAUDMETALBOX SAID IT INTENDS TO USE ITS FINNISH INVESTMENT AS A SPRINGBOARD TO DEVELOP EXPORTS OF ITS CORE PRODUCTS TO EASTERN EUROPE GWS WILL RETAIN A SIGNIFICANT STAKE IN THE JOINT COMPANY AND WILL CONTINUE TO DEVELOP SEPARATELY ITS OTHER BUSINESSES 9311010090 931101 US INVESTIGATING S&L CHIEF'S '85 CHECK TO CLINTON SBABACKED LOAN TO FRIEND BY BRUCE INGERSOLL AND PAUL M BARRETT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON FEDERAL PROSECUTORS ARE INVESTIGATING WHETHER MONEY FROM A NOWDEFUNCT ARKANSAS THRIFT WAS ILLEGALLY DIVERTED IN THE MID1980S TO LOCAL POLITICIANS INCLUDING A REELECTION CAMPAIGN OF THENGOV BILL CLINTON THE PROBE IS THE LATEST DEVELOPMENT IN A LARGER FEDERAL INVESTIGATION OF MADISON GUARANTY SAVINGS & LOAN WHICH WAS TAKEN OVER BY FEDERAL REGULATORS AFTER IT FAILED IN 1989 IN ADDITION PROSECUTORS ARE INVESTIGATING AN ALLEGED DEFRAUDING OF THE SMALL BUSINESS ADMINISTRATION BY THE HEAD OF A LITTLE ROCK SMALLBUSINESS INVESTMENT COMPANY WHICH LENT MONEY TO THE WIFE OF JAMES MCDOUGAL A CLINTON BUSINESS ASSOCIATE AND OWNER OF MADISON GUARANTY BOTH THE POLITICAL CONTRIBUTIONS AND THE FRAUD ALLEGATIONS ARE BEING HANDLED BY THE US ATTORNEY IN LITTLE ROCK PAULA CASEY FEDERAL OFFICIALS FAMILIAR WITH THE INQUIRIES SAID THE RESOLUTION TRUST CORP RECENTLY REFERRED TO MS CASEY THE MATTER OF POSSIBLY ILLEGAL CAMPAIGN CONTRIBUTIONS THE US ATTORNEY'S OFFICE IS EXAMINING AMONG OTHER QUESTIONS WHETHER CHECKS DRAWN ON MADISON ACCOUNTS WENT INTO A CLINTON CAMPAIGN FUND MS CASEY A CLINTON APPOINTEE DECLINED TO COMMENT WHITE HOUSE AIDES SAID YESTERDAY THAT IN 1985 MR CLINTON HAD RECEIVED A 3000 PERSONAL CHECK FROM MR MCDOUGAL THE CONTRIBUTION WAS PART OF A LARGER EFFORT TO RETIRE DEBTS FROM MR CLINTON'S 1984 GUBERNATORIAL CAMPAIGN MR MCDOUGAL IS A LONGTIME FRIEND OF BILL AND HILLARY RODHAM CLINTON AND IN 1978 HE AND HIS WIFE INVESTED WITH THE CLINTONS IN AN OZARK MOUNTAINS REALESTATE VENTURE KNOWN AS WHITEWATER DEVELOPMENT CORP THE US ATTORNEY'S OFFICE IS LOOKING AT WHITEWATER'S DEALINGS WITH MADISON GUARANTY THE CLINTONS HAVE DESCRIBED WHITEWATER AS A MONEYLOSING VENTURE THE MCDOUGALS ALSO FIGURE IN THE SMALLBUSINESS FRAUD INVESTIGATION ONE OF THE INVESTMENTCOMPANY TRANSACTIONS BEING SCRUTINIZED IS A 300000 LOAN IN 1986 TO A FIRM OWNED BY SUSAN MCDOUGAL WE'RE LOOKING AT ALL THE FINANCIAL DEALINGS OF THE COMPANY SAID MARTIN TECKLER THE SBA'S DEPUTY GENERAL COUNSEL YESTERDAY WHITE HOUSE AIDES SOUGHT TO DISTANCE THE PRESIDENT FROM THE INVESTIGATIONS AS FOR THE 3000 CHECK FROM MR MCDOUGAL THEY SAID THAT NEITHER MR CLINTON NOR HIS STAFF HAD ANY REASON AT THE TIME TO SUSPECT THERE WAS ANYTHING IMPROPER ABOUT THE 1985 CONTRIBUTION THE FIRST WE HEARD ABOUT THE INVESTIGATION INTO POLITICAL CONTRIBUTIONS WAS FROM PRESS CALLS SAID WHITE HOUSE SPOKESMAN JEFF ELLER THE WASHINGTON POST YESTERDAY REPORTED THE RTC REFERRAL TO THE US ATTORNEY THE INVESTIGATION WILL JUST TAKE ITS COURSE MR ELLER ADDED AN RTC SPOKESWOMAN SAID THE CAUSE OF MADISON GUARANTY'S COLLAPSE HAS BEEN UNDER INVESTIGATION BUT SHE WOULDN'T CONFIRM OR DENY THAT THE RTC HAD ASKED THE US ATTORNEY TO MAKE A FURTHER CRIMINAL INQUIRY OF POSSIBLY IMPROPER CAMPAIGN CONTRIBUTIONS WITH ALL FAILED SAVINGS AND LOANS WE DO AN INVESTIGATION SAID RTC SPOKESWOMAN FELISA NEURINGER IF WE FIND SOMETHING THAT GOES BEYOND OUR REALM OF CIVIL ENFORCEMENT MEASURES THEN WE CAN AND DO MAKE REFERRALS TO THE JUSTICE DEPARTMENT A FEDERAL OFFICIAL FAMILIAR WITH THE MATTER SAID MS CASEY THE FEDERAL PROSECUTOR WILL HAVE TO DETERMINE WHETHER ALLEGATIONS RELATED TO TRANSACTIONS IN THE MID1980S CAN STILL BE PROSECUTED TWO OBSTACLES COULD BE THE EXPIRATION OF THE STATUTE OF LIMITATIONS AND THE DISAPPEARANCE OF RECORDS MS CASEY WAS ALSO ASKED TO LOOK INTO MADISON GUARANTY'S DEALINGS WITH ARKANSAS GOV JIM GUY TUCKER ACCORDING TO THE WASHINGTON POST THE THRIFT LENT MORE THAN 1 MILLION TO MR TUCKER'S COMPANIES FOR REAL ESTATE AND OTHER VENTURES IN THE MID1980S WHILE HE WAS A MEMBER OF A LITTLE ROCK LAW FIRM THAT REPRESENTED MADISON THE THRIFT SUSTAINED LARGE LOSSES ON SOME OF THE LOANS THE POST REPORTED LAST NIGHT MR TUCKER'S PRESS SECRETARY SAID THAT THE GOVERNOR DENIES ANY WRONGDOING IN CONNECTION WITH LOANS TO HIMSELF OR PARTNERSHIPS IN WHICH HE HAS AN INTEREST AND ADDED THAT THERE ARE NO OUTSTANDING LOANS ON A PARALLEL TRACK FEDERAL PROSECUTORS IN LITTLE ROCK ARE PURSUING A CRIMINAL CASE AGAINST A FORMER LOCAL JUDGE DAVID HALE AND TWO OTHER MEN INVOLVED IN THE COLLAPSE OF CAPITAL MANAGEMENT SERVICES INC A SBAFUNDED INVESTMENT COMPANY IN SEPTEMBER A FEDERAL GRAND JURY INDICTED MR HALE OWNER OF CAPITAL MANAGEMENT AND THE OTHERS ON FRAUD CHARGES AND THE SBA TOOK OVER THE UNDERCAPITALIZED INVESTMENT COMPANY CAPITAL MANAGEMENT MADE LOANS TO COMPANIES IN WHICH MR TUCKER HAD LARGE STAKES AS WELL AS THE 300000 LOAN TO MASTER MARKETING A REAL ESTATE FIRM OWNED BY SUSAN MCDOUGAL ACCORDING TO LOAN DOCUMENTS MR HALE SAID THAT LOSSES ON THESE LOANS WERE PARTLY TO BLAME FOR CAPITAL MANAGEMENT'S DOWNFALL MR HALE TRIED TO STAVE OFF HIS INDICTMENT BY OFFERING TO COOPERATE WITH FEDERAL PROSECUTORS IN AN INVESTIGATION OF MADISON GUARANTY INCLUDING POSSIBLE MISUSE OF FUNDS FOR POLITICAL PURPOSES MS CASEY DECLINED TO COMMENT ON WHY MR HALE'S OFFER WAS TURNED DOWN MR MCDOUGAL WHO WAS ACQUITTED IN 1990 OF FRAUD CHARGES STEMMING FROM MADISON GUARANTY'S COLLAPSE COULDN'T BE REACHED YESTERDAY FOR COMMENT JAMES HENLEY FATHER OF SUSAN MCDOUGAL SAID LAST NIGHT SHE HAS NO WISH TO COMMENT AT ALL 9311010089 931101 BUSINESS BRIEF HERMAN'S SPORTING GOODS INC RETAILER WILL SEEK TO CLOSE 28 STORES IN REORGANIZATION HERMAN'S SPORTING GOODS INC SAID IT WILL SEEK BANKRUPTYCOURT PERMISSION TO CLOSE AS MANY AS 28 STORES EARLY NEXT YEAR AS PART OF AN OVERALL REORGANIZATION PLAN THE STORES TARGETED FOR CLOSURE ARE IN REGIONS OUTSIDE ITS CORE MARKETS OR DON'T MEET EXPECTATIONS FOR LONGTERM PROFITABILITY AND PRODUCTIVITY HERMAN'S SAID ADDING THAT IT HAS DECIDED TO EXIT SEVERAL PERIPHERAL MARKETS INCLUDING PITTSBURGH SOUTHERN VIRGINIA AND UPSTATE NEW YORK THE CARTERET NJ SPORTING GOODS RETAILER SAID IT WILL FILE A MOTION WITH THE BANKRUPTCY COURT IN TRENTON NJ FOR PERMISSION TO CLOSE THE STORES AFTER THE CHRISTMAS SEASON IT EXPECTS THE COURT TO CONSIDER THE MOTION EARLY THIS MONTH HERMAN'S ADDED THAT IT PLANS TO OPEN AS MANY AS 50 NEW STORES AND REMODEL OR RELOCATE AS MANY AS 50 EXISTING STORES IN ITS CORE MARKETS IN THE NEXT THREE YEARS THE COMPANY WHICH FILED FOR PROTECTION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE EARLIER THIS YEAR EXPECTS TO EMERGE FROM THOSE PROCEEDINGS EARLY NEXT YEAR 9311010088 931101 SMALL STOCK FOCUS PBHG GROWTH FUND STRATEGY SUCCEEDS DESPITE WILD SWINGS ALONG THE WAY BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IF YOU WANT TO TAKE A ROLLER COASTER RIDE IN SMALL STOCKS TAKE IT WITH GARY PILGRIM MR PILGRIM WHO HAS MANAGED THE PBHG GROWTH FUND SINCE ITS INCEPTION IN DECEMBER 1985 IS A DISCIPLINED SMALLSTOCK PICKER THE AVERAGE MARKET VALUE OF THE STOCKS IN HIS PORTFOLIO IS A MEASLY 500 MILLION ALTHOUGH THE FUND HAS HAD WILD SWINGS FROM ONE QUARTER TO THE NET MR PILGRIM HAS MANAGED TO END UP WITH ONE OF THE BEST FIVEYEAR PERFORMANCE RANKINGS AS REPORTED BY LIPPER ANALYTICAL SERVICES' THIRDQUARTER REPORT THE FUND IS UP 42 YEARTODATE WE DON'T WANT TO TAKE A LOT OF COMPANY RISKS MR PILGRIM SAYS INSTEAD WE TAKE SECTOR RISK AND GROWTH RISK THE FUND'S HOLDINGS OF MORE THAN 35 MILLION IN ASSETS ARE SPREAD AMONG ROUGHLY 75 STOCKS MOST OF WHICH ARE IN THREE SECTORS TECHNOLOGY CONSUMER GOODS AND HEALTH CARE WITH A SMATTERING OF OTHER INDUSTRIES AND A HEALTHY DOLLOP OF CASH THE RESULT OF EAGER INVESTORS WANTING TO RIDE MR PILGRIM'S COATTAILS AMONG THE FUND'S TECHNOLOGY STOCKS MR PILGRIM HAS BIG POSITIONS IN THE SEMICONDUCTOR COMPANIES ATMEL CORP AND LAM RESEARCH SHARES OF ATMEL IN SAN JOSE CALIF CLOSED UNCHANGED AT 27 1/2 ON FRIDAY BUT ARE TRADING WELL BELOW A 52WEEK HIGH OF 38 5/8 LAM RESEARCH JUST REPORTED EARNINGS OF 33 CENTS A SHARE FOR ITS FISCAL FIRST QUARTER ENDED SEPT 30 A WHOPPING SIX CENTS ABOVE CONSENSUS ESTIMATES OF 27 CENTS A SHARE ACCORDING TO THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM THE SEMICONDUCTOREQUIPMENT MAKER IN FREMONT CALIF EARNED 13 CENTS A SHARE FOR THE SAME PERIOD A YEAR EARLIER LAM RESEARCH STOCK ROSE 1 TO 26 1/2 ON FRIDAY MR PILGRIM SAYS HE USES AN EARNINGS MODEL TO HELP SELECT STOCKS WITH EARNINGS GROWTH SURPRISES THAT BEAT ESTIMATES WE ARE NOT OUT THERE TRYING TO OUTTRADE THE WORLD HE SAYS BUT IF A COMPANY MISSES ESTIMATES AND THERE IS A DECELERATION OF EARNINGS THEN I SELL THE STOCK AMONG HIS CONSUMER HOLDINGS BOMBAY IS ONE OF MR PILGRIM'S FAVORITE STOCKS THIS SPECIALTYFURNITURE RETAILER IN FORT WORTH TEXAS REPORTED EARNINGS OF NINE CENTS A SHARE FOR ITS FISCAL FIRST QUARTER ENDED SEPT 30 MORE THAN DOUBLE COMPARED WITH FOUR CENTS THE YEAR BEFORE THE COMPANY ALSO BEAT ANALYST ESTIMATES OF SEVEN CENTS A SHARE I'VE OWNED THIS STOCK FOR THREE YEARS AND IT CONTINUES TO MEET AND BEAT EXPECTATIONS HE SAYS BOMBAY SHARES ROSE 3/4 TO 44 1/2 IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE MR PILGRIM IS ALSO KNOWN FOR HIS ABILITY TO GIVE THE FUND AN EXTRA KICK BY BUYING INITIAL PUBLIC OFFERINGS THIS FUND HAS ENJOYED BENEFITS FROM ITS SMALL SIZE AND WE HAVE BENEFITED FROM IPOS HE SAYS I'M VERY OPPORTUNISTIC WITH IPOS BUT I DON'T LIKE TO HOLD ON TO THEM TOO LONG BECAUSE OF THE RISK ASSOCIATED WITH A NEW STOCK SOME HOT IPO DEALS MR PILGRIM HAS PARTICIPATED IN INCLUDE LEVEL ONE COMMUNICATIONS A TELECOMMUNICATIONSEQUIPMENT DEVELOPER ALDILA A GRAPHITEGOLFSHAFT MAKER AND HOMETOWN BUFFET A RESTAURATEUR PBHG IS MANAGED BY PILGRIM BAXTER GREIG & ASSOCIATES A WAYNE PA FIRM THAT MOSTLY MANAGES PENSION FUNDS THE MANAGEMENT FIRM ISN'T RELATED TO THE PILGRIM GROUP IN LOS ANGELES STOCKPICKING ISN'T A SOCIAL EVENT FOR THE FAIRLY STRAIGHTFORWARD FORMER OKLAHOMAN NOBODY CALLS ME ANYMORE BECAUSE THEY KNOW I WON'T ANSWER THE PHONE HE SAYS I'M A NUMBERS ORIENTED PERSON AND I LIKE TO STAY IN THE OFFICE AND WATCH THE STOCKS A LATE BUYING SPREE BOOSTED SMALL STOCKS AND MANY INITIAL PUBLIC OFFERINGS GRABBED THE SPOTLIGHT THE RUSSELL 2000 INDEX A MEASUREMENT OF SMALL STOCKS ON THE NASDAQ MARKET THE NEW YORK AND AMERICAN STOCK EXCHANGES ROSE 230 OR 090 TO 25918 KENDALL SQUARE RESEARCH TOPPLED 7 7/8 OR 325 TO 16 3/8 LATE THURSDAY THE COMPUTER MAKER IN WALTHAM MASS SAID IT EXPECTS TO REPORT A LOSS IN ITS THIRD QUARTER ENDED SEPT 25 ON REVENUE SUBSTANTIALLY BELOW ANALYST EXPECTATIONS IN THE THIRD QUARTER ENDED SEPT 26 1992 KENDALL SQUARE RESEARCH REPORTED A LOSS OF 325 MILLION ON REVENUE OF 53 MILLION THE COMPANY ALSO ANNOUNCED THAT GEORGE MCCLELLAND WHO WAS APPOINTED SENIOR VICE PRESIDENT CHIEF ADMINISTRATIVE OFFICER AND TREASURER IN SEPTEMBER HAS RESIGNED FROM THE COMPANY MERCURY INTERACTIVE LEAPED 5 5/8 TO 18 5/8 FROM ITS OFFERING PRICE OF 13 ON ITS DEBUT THE SOFTWARE COMPANY IN SANTA CLARA CALIF OFFERED 275 MILLION SHARES THROUGH UNDERWRITERS LED BY HAMBRECHT & QUIST THE COMPANY HAD EXPECTED THE SHARES TO BE OFFERED BETWEEN EIGHT AND 10 MERCURY INTERACTIVE DEVELOPS PRODUCTS THAT AUTOMATE TESTING AND QUALITY ASSURANCE FOR DEVELOPERS OF CLIENT/SERVER SOFTWARE AND SYSTEMS INTEGRACARE INC JUMPED TO 7 3/4 FROM ITS OFFERING PRICE OF 6 THE COMPANY IN DELRAY BEACH FLA OFFERED ONE MILLION SHARES THROUGH FIRST EQUITY CORP OF FLORIDA EXIDE SURGED 6 7/8 TO 26 7/8 ON THE NEW YORK STOCK EXCHANGE THE COMPANY IN BLOOMFIELD HILLS MICH OFFERED FOUR MILLION SHARES AT 20 THROUGH UNDERWRITERS LED BY MORGAN STANLEY EXIDE MAKES LEADACID BATTERIES HOLOPHANE ROSE 1/4 TO 15 1/4 THE COMPANY IN COLUMBUS OHIO OFFERED 27 MILLION SHARES AT 15 THROUGH UNDERWRITERS LED BY SALOMON BROTHERS HOLOPHANE MAKES LIGHTING FIXTURES AND SYSTEMS FOR INDUSTRIAL COMMERCIAL AND OUTDOOR APPLICATIONS 9311010087 931101 ECONOMY MEDICAL CARE REJECTS SURGICAL CARE BID BUT WILL INVESTIGATE OTHER ALLIANCES BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL BUCKING A POWERFUL CONSOLIDATION TREND IN THE HEALTHCARE INDUSTRY MEDICAL CARE AMERICA INC REJECTED AN ACQUISITION BID BY SURGICAL CARE AFFILIATES INC ITS LARGEST RIVAL IN THE OUTPATIENT SURGERY BUSINESS AFTER A FRIDAY BOARD MEETING DALLASBASED MEDICAL CARE SAID IT WOULD NOT MEET WITH SURGICAL CARE TO DISCUSS THE PROPOSED STOCK SWAP VALUED AT NEARLY 1 BILLION INSTEAD MEDICAL CARE SAID THAT IT HAD HIRED DILLON READ TO HELP IT INVESTIGATE WHETHER TO REMAIN INDEPENDENT TO RESTRUCTURE OR TO IMPLEMENT NEW STRATEGIC ALLIANCES AND BUSINESS COMBINATIONS AMID THE CLINTON ADMINISTRATION'S CAMPAIGN TO FORGE LARGE REGIONAL ALLIANCES TO PROVIDE LOWERCOST HEALTH CARE A HOST OF HOSPITAL CONCERNS MANAGEDCARE PROVIDERS AND PHARMACY OPERATORS HAVE ANNOUNCED MERGERS IN RECENT MONTHS BUT DESPITE PRESSURE FROM SOME LARGE INSTITUTIONAL HOLDERS TO AT LEAST SERIOUSLY CONSIDER THE SURGICAL CARE BID MEDICAL CARE'S BOARD JUST DIDN'T FEEL THAT IT WAS IN THE INTEREST OF THE COMPANY OR ITS STOCK HOLDERS SAID JONATHAN BOND MEDICAL CARE SENIOR VICE PRESIDENT WHO DECLINED TO DISCUSS DETAILS SURGICAL CARE AN OPERATOR OF 51 OUTPATIENT SURGERY CENTERS BASED IN NASHVILLE TENN SAID IT WOULD REVIEW ITS ALTERNATIVES WE DO NOT UNDERSTAND HOW MEDICAL CARE CAN REJECT OUR MERGER PROPOSAL WITHOUT ANY HEARING JOEL C GORDON CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN A PRESS RELEASE ON OCT 25 SURGICAL CARE OFFERED TO EXCHANGE 135 SHARES OF ITS COMMON STOCK FOR EACH OF THE 366 MILLION SHARES OUSTANDING OF MEDICAL CARE THE NATION'S LARGEST OPERATOR OF OUTPATIENT SURGERY CENTERS WITH 91 SUCH FACILITIES AND ALSO A PROVIDER OF HOMEINFUSION THERAPY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY MEDICAL CARE CLOSED AT 24875 UP 375 CENTS SURGICAL CARE CLOSED AT 1975 UP 25 CENTS GIVEN MEDICAL CARE'S CONTINUING PROBLEMS WITH ITS HOME INFUSION BUSINESS SOME ANALYSTS DOUBT THAT SURGICAL CARE WILL MAKE A SIGNIFICANTLY HIGHER SECOND OFFER I WOULDN'T BE SURPRISED TO SEE THEM BUMP IT A LITTLE BIT BUT I DON'T THINK BY MUCH SAID JOHN HINDELONG AN ANALYST WITH DONALDSON LUFKIN JENRETTE OTHER ANALYSTS CONTEND THAT BEFORE CONSIDERING ANY SORT OF MERGER MEDICAL CARE WANTS TO PATCH UP ITS BATTERED INFUSION BUSINESS WHOSE PROBLEMS HAVE TRIGGERED GRUMBLING AMONG SHAREHOLDERS MEDICAL CARE STOCK WAS TRADING AS HIGH AS 58 A SHARE AFTER THE COMPANY WAS FORMED IN SEPTEMBER 1992 I THINK THAT THEY THINK THEIR STOCK IS PROBABLY TOO CHEAP SAID TODD RICHTER A DEAN WITTER ANALYST HARD HIT BY COMPETITORS' COSTCUTTING AND A LACK OF MANAGEDCARE CONTRACTS MEDICAL CARE'S HOME INFUSION BUSINESS HAS CONTINUED TO STRUGGLE DESPITE LAYOFFS ITS OWN COSTCUTTING AND A BOLSTERED MARKETING EFFORT IF ANYTHING SAID MR HINDELONG THE ANALYST THE VALUE OF MEDICAL CARE IS PERCEIVED AS LESS THAN BEFORE THEIR EARNINGS ANNOUNCEMENT WHICH WAS MADE OCT 25 JUST HOURS AFTER SURGICAL CARE ANNOUNCED ITS BID SOME OBSERVERS STILL EXPECT OTHER HEALTHCARE PROVIDERS TO WEIGH IN WITH COMPETING BIDS FOR MEDICAL CARE ALTHOUGH THE MOST OBVIOUS SUITOR COLUMBIA HEALTHCARE CORP HAS ALREADY SAID IT IS NOT INTERESTED IN AN OUTRIGHT ACQUISITION MEDICAL CARE AND COLUMBIA A FASTGROWING HOSPITAL CONCERN BASED IN LOUISVILLE KY RECENTLY AGREED TO JOINTLY OPERATE FACILITIES IN NINE CITIES 9311010086 931101 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR EMPLOYMENT GROWTH HAS BEEN ON A SLOW UPWARD TRACK FOR MORE THAN A YEAR BUT MOST OF THE JOBS HAVE BEEN RELATIVELY LOWPAYING SERVICE POSITIONS THE MODEST PACE OF PAYROLL EXPANSION PROBABLY CONTINUED IN OCTOBER ANALYSTS SAY WITH MOST OF THE GAINS AGAIN COMING IN RETAIL TRADE AND OTHER SERVICES RICHARD BERNER CHIEF ECONOMIST AT MELLON BANK IN PITTSBURGH SAID THE LABOR DEPARTMENT'S EMPLOYMENT REPORT DUE OUT THIS WEEK WILL PROBABLY SHOW AN INCREASE OF 140000 NONFARM PAYROLL JOBS IN OCTOBER JUST SLIGHTLY BELOW THE 150000 MONTHLY PACE SO FAR THIS YEAR MR BERNER SAID HE EXPECTS THAT THE DECLINE IN MANUFACTURING PAYROLLS PROBABLY CONTINUED BUT AT A SLOWER RATE THAN IN RECENT MONTHS ALSO WE SHOULD SEE ONLY A LIMITED INCREASE IN GOVERMENT JOBS COMPARED TO LAST MONTH'S 71000 GAIN MR BERNER SAID THE MANUFACTURING SECTOR BENEFITED IN OCTOBER FROM INCREASED PRODUCTION OF AUTOS AND LIGHT TRUCKS WHICH MEANT FEWER LAYOFFS IN THE INDUSTRY MR BERNER SAID OVERALL JOB GROWTH HOWEVER HAS NOT EXPANDED AT THE SAME RATE AS THE REST OF THE ECONOMY MR BERNER SAID EMPLOYERS REMAIN CAUTIOUS ABOUT HIRING IN PART BECAUSE OF UNCERTAINTY OVER THEIR OBLIGATIONS UNDER THE NEW HEALTHCARE SYSTEM 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 9311010084 931101 BUSINESS BRIEFS CHAMBERS DEVELOPMENT CO PITTSBURGH SAID THAT SINCE AUGUST IT HAS SIGNED CONTRACTS GENERATING MORE THAN 35 MILLION IN REVENUE FOR THE COLLECTION TRANSPORTATION AND DISPOSAL OF BOTH SPECIAL AND MUNICIPAL WASTE ARMCO INC COMPLETED THE SALE OF ITS MIAMI INDUSTRIES UNIT TO COPPERWELD CORP PITTSBURGH FOR 15 MILLION STONE & WEBSTER CANADA LTD MARUBENI CORP OF JAPAN AND NUOVA CIMIMONTUBI SPA OF ITALY WILL FORM A CONSORTIUM TO BUILD A POWER STATION IN JAVA INDONESIA THE CONTRACT IS VALUED AT 156 MILLION STONE & WEBSTER CANADA IS A TORONTOBASED UNIT OF BOSTON ENGINEERING AND CONSTRUCTION CONCERN STONE & WEBSTER INC PITNEY BOWES INC STAMFORD CONN PURCHASED AMERISCRIBE CORP NEW YORK FOR 828 MILLION IN STOCK AMERISCRIBE SHAREHOLDERS WILL RECEIVE PITNEY BOWES COMMON STOCK VALUED AT 1437 FOR EACH AMERISCRIBE COMMON SHARE ROCKWELL INTERNATIONAL CORP'S BODY AND CHASSIS UNIT WILL BE THE MAJORITY PARTNER IN A JOINT VENTURE WITH ZHENJIANG GENERAL EQUIPMENT FACTORY OF CHINA TO MANUFACTURE PRODUCTS FOR THE CHINESE PASSENGERCAR INDUSTRY 9311010082 931101 NAKED IN ORLANDO BY GEORGE KOCH I WAS SCHEDULED RECENTLY TO INTRODUCE THE PRESIDENT OF MY COMPANY TO A LARGE GROUP OF CUSTOMERS MEETING AT OUR ANNUAL CONVENTION IN ORLANDO FLA I WAS LATE AND DIDN'T SHOW UP UNTIL LONG AFTER HE HAD GIVEN UP ON ME AND INTRODUCED HIMSELF MY EXCUSE I WAS SOMEWHERE ELSE IN A HOTEL LOCKED ALONE IN A ROOM NAKED I WOKE UP IN PLENTY OF TIME THAT MORNING SAILED INTO THE BATHROOM CLOSED THE DOOR BUT DIDN'T LOCK IT I WAS ALONE AND THE OUTER HOTELROOM DOOR WAS DEADBOLTED AGAINST OVEREAGER HOUSEKEEPERS I SHOWERED DRIED MYSELF OFF AND HEADED OUT THE DOOR BUT WHEN I TURNED THE BATHROOM DOORKNOB IT DID NOT BUDGE THERE I WAS AND I WAS STUCK THE ROOM AT THE END OF THE HALLWAY AT THE END OF THE HOTEL FACED NOTHING JUST OUTSIDE AIR 20 STORIES UP AND I'D HUNG THE DO NOT DISTURB SIGN ON THE DEADBOLTED DOOR I WAS BOOKED FOR A ONEWEEK STAY NO REASON FOR ANYONE TO COME BY UNTIL IT WAS TIME TO CHECK OUT UNDER THE CIRCUMSTANCES I ASKED THE QUESTION ANY SEASONED EXECUTIVE WOULD WHAT WOULD MACGYVER DO OF COURSE I COULD BLOW THE DOOR OFF I LOOKED AROUND FOR SOME CHARCOAL SULFUR AND POTASSIUM NITRATE TO MAKE GUNPOWDER NONE NOR WAS THERE A MAGNESIUM PIPE TO FILE INTO SHAVINGS TO MAKE INTO A BLOWTORCH AS THERE WOULD BE FOR MACGYVER I POKED THROUGH MY TRAVEL KIT AND FINALLY FOUND A FINGERNAIL CLIPPER I WEDGED THE CLIPPER INTO THE DOORJAMB AND SCRAPED THE BOLT TO SLIDE IT OUT BUT THE BOLT HAD BROKEN OFF IN PLACE RATS I SEARCHED THE ROOM AGAIN USELESS TOWELS SOAP LITTLE PLASTIC BOTTLES OF SHAMPOO CONDITIONER MOISTURIZING LOTION A PLASTIC SHOWER CAP HMM METAL TOWEL BARS I YANKED ONE OFF THE WALL AND WAS ABLE TO HAMMER THE HOLLOW END FLAT USING THE THICK BOTTOM OF A DRINKING GLASS AND THE MARBLE SINK TOP A PRY BAR THE STUFF OF LEGENDS I PUSHED IT INTO THE JAMB AND PRIED THE TOWEL BAR BENT THE DOOR FRAME WAS STEEL AND SOLID WOOD NEARLY TWO INCHES THICK A STRONG DOOR VALIANTLY I TRIED MY PRY BAR ON THE HINGE PINS AGAIN USING THE DRINKING GLASS FOR A HAMMER I'D REMOVED PLENTY OF DOORS AT HOME THIS WAY POP THE PINS OUT PULL THE DOOR FREEDOM BUT THIS TIME THE GLASS BROKE AND THE PINS DIDN'T BUDGE ON INSPECTION I SAW THEY WERE WELDED IN PLACE NEXT I EXAMINED THE DOORKNOB AND PUSHED ON ITS OWN CLIP TO PULL THE KNOB OFF HAH PROGRESS BUT THIS ONLY EXPOSED THE KNOB MECHANISM SCREWED TIGHTLY INTO THE DOOR SO I TRIED THE FINGERNAIL CLIPPER AS A SCREWDRIVER TOO SOFT IT BENT AND I STARTED TO SWEAT THE MIRRORS WITH MANY HIGHWATTAGE LIGHTS WERE TURNING THE ROOM INTO AN OVEN I UNSCREWED MOST OF THE BULBS NO NEED TO COOK MY GOOSE IN MORE WAYS THAN ONE BY NOW I WAS GLAD TO BE WORKING IN THE BUFF I MADE A HALFHEARTED EFFORT AT TAPPING OUT AN SOS ON THE WALL AND SHOUTING HELP HELP I BEGAN DISMANTLING THE BATHROOM LOOKING FOR A MAKESHIFT SCREWDRIVER I TOOK APART THE TINY TV TOILET AND A WALL PLUG TO FIND A RIGHTANGLED PIECE OF STEEL TO USE ON THE SCREWS ALL WERE SOFT METAL AND PLASTIC I UNPLUGGED THE CABLE AND POWER TO THE TV HOPING FOR SECURITY DEVICES THERE TO ALERT THE FRONT DESK THAT THEY WERE BEING STOLEN FOR NAUGHT MY MACGYVER BRAVADO WAS BEGINNING TO WANE HOW LONG BEFORE I GOT OUT AND IF I DIDN'T HOW WOULD THE OBITUARY READ NAKED MAN WRECKS HOTEL BATHROOM STARVES TO DEATH WILL RENEWED I BEGAN TO CHOP UP THE WOODEN DOOR AROUND THE LOCK TO PULL OUT THE MECHANISM I USED THE SHARP END OF MY HOMEMADE PRY BAR AND BEGAN HACKING AWAY THIS WAS SLOW GOING BUT I WAS OUT OF CLEVER STRATAGEMS I REMEMBERED HORROR STORIES OF PEOPLE BEING BURIED ALIVE AND TRYING TO SCRAPE THEIR WAY OUT OF WOODEN CASKETS WITH THEIR FINGERNAILS AT LEAST I HAD A TOWEL BAR AND THEN I HEARD A TINY DISTANT VOICE IT WAS A SECURITY GUARD OUTSIDE MY ROOM SOMEONE HAD HEARD MY SOSS AND REPORTED THEM TO THE FRONT DESK NOT SURE IF THEY WERE REAL OR A PRANK I DON'T KNOW WHO YOU ARE BUT IF YOU'RE READING THIS THANK YOU THE MAINTENANCE GUY COULDN'T GET THE DOOR LOOSE EITHER AND HE COULDN'T GET THE LOCK MECHANISM OUT BECAUSE IT WAS SCREWED IN FROM MY SIDE HE SLID A SMALL SCREWDRIVER THROUGH THE NARROW SPACE UNDER THE DOOR SO I COULD UNDO THE SCREWS BUT IT WAS TOO SMALL AND IT BENT FINALLY HE POUNDED A LARGER SCREWDRIVER UNDER THE DOOR WITH A HAMMER I REMOVED THE SCREWS AND HE PULLED THE MAIN MECHANISM FROM THE DOOR THERE WAS A THREEINCH PEEPHOLE NOW HE COULD SEE A WHOLE LOT MORE OF ME THAN I COULD OF HIM STILL THE BROKEN BOLT REMAINED IN THE JAMB THE DOOR STAYED SHUT NOW HE PASSED ME A VERY LARGE FLATHEAD SCREWDRIVER THROUGH THE CIRCULAR HOLE I STOOD IN THE BATHTUB OUT OF THE WAY TRYING TO USE IT AS A PRY BAR TO PULL THE DOOR AWAY FROM THE JAMB THEN AS I PRIED HE THREW HIS SHOULDER INTO THE DOOR AND IT THUMPED OPEN I EMERGED AT LAST I FINALLY MADE IT TO THE AUDITORIUM AN HOUR LATE BUT WITH THE SINGLEBEST HOTEL STORY ANYONE HAD EVER HEARD THE GROUP NICKNAMED ME MACGYVER THE HOTEL DID NOT APOLOGIZE NOR DID IT SEND ME A BILL FOR THE BATHROOM DAMAGES AND LEAST NOT YET MR KOCH IS SENIOR VICE PRESIDENT OF ORACLE CORP A SOFTWARE COMPANY IN REDWOOD SHORES CALIF 9311010081 931101 TECHNOLOGY DUPONT MERCK DRUG PRICES SOAR AS PACKAGE CHANGES NEW YORK DUPONT MERCK PHARMACEUTICAL CO NOTIFIED HOSPITALSUPPLY BUYERS LAST WEEK THAT IT IS ELIMINATING SPECIAL PACKAGING THAT WILL EFFECTIVELY RAISE PRICES OF SOME MAJOR PRODUCTS MORE THAN 700 THE COMPANY A JOINT VENTURE BETWEEN DUPONT CO OF WILMINGTON DEL AND MERCK & CO OF RAHWAY NJ IS DISCONTINUING INDIVIDUALLY WRAPPED AND LABELED DOSES OF PRODUCTS SUCH AS THE CLOTPREVENTING AGENT COUMADIN AND PAINKILLERS PERCOCET AND PERCODAN HOSPITALS GENERALLY PREFER SUCH UNIT DOSE PACKAGES BECAUSE THEY PREVENT MIXUPS EVEN THOUGH IT IS MORE EXPENSIVE TO PRODUCE DUPONT MERCK'S UNITDOSE PACKAGED DRUGS ARE PRICED MUCH LOWER THAN THOSE SOLD IN BOTTLES TO COMMUNITY PHARMACIES HOSPITALS SAY THEY PAY BETWEEN 250 AND 5 FOR 100 PILLS OF PERCOCET AND COUMADIN IN THE UNITDOSE PACKAGING EQUAL TO 25 CENTS TO FIVE CENTS PER PILL BUT THE BOTTLES OF 100 COST BETWEEN 40 AND 50 OR 40 CENTS TO 50 CENTS EACH DUPONT MERCK IS PERMITTING CUSTOMERS TO BUY UP TO A YEAR'S SUPPLY BY NOV 15 CUSTOMERS OF DUPONT MERCK SAID THEY HAD BEEN NOTIFIED OF THE CHANGE LATE LAST WEEK AND WERE STILL EVALUATING ITS IMPLICATIONS SOME SAID THE PAINKILLERS COULD EASILY BE SUBSTITUTED WITH CHEAPER ALTERNATIVES BUT COUMADIN DOESN'T HAVE A COMPETITOR A DUPONT MERCK SPOKESMAN SAID THE UNITDOSE PACKAGED PRODUCTS REPRESENT ABOUT 7 OF THE PRODUCTS' UNIT SALES THE LOW MARGINS ON THE UNIT DOSE PACKAGED PRODUCTS HE SAID AND INSTANCES OF UNIT DOSES BEING DIVERTED TO THE OUTPATIENT MARKET PROMPTED THE DECISION TO ELIMINATE IT 9311010080 931101 POLITICS & POLICY NEW JERSEY VIRGINIA AND NEW YORK CITY RACES BOIL DOWN TO WORRIES ABOUT TURNOUT NOT ISSUES BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CRANKY VOTERS WORRIED ABOUT CRIME AND SEEMINGLY NO LONGER INTRIGUED BY THE IDEA OF ELECTING WOMEN TO HIGH OFFICE WILL TRUDGE TO THE POLLS TOMORROW TO CHOOSE GOVERNORS IN NEW JERSEY AND VIRGINIA AND MAYORS IN NEW YORK AND A HALFDOZEN OTHER BIG CITIES AWFUL YEAR AWFUL CAMPAIGNS SAYS DOUGLAS BAILEY A ONETIME REPUBLICAN POLITICAL CONSULTANT WHO NOW PUBLISHES A COMPUTERIZED CAMPAIGN NEWSLETTER THE KEY RACES PIT INCUMBENT DEMOCRATIC GOV JIM FLORIO AGAINST REPUBLICAN CHRISTINE TODD WHITMAN IN NEW JERSEY FORMER DEMOCRATIC STATE ATTORNEY GENERAL MARY SUE TERRY AGAINST FORMER CONGRESSMAN GEORGE F ALLEN FOR GOVERNOR IN VIRGINIA AND INCUMBENT MAYOR DAVID DINKINS A DEMOCRAT AGAINST REPUBLICAN RUDOLPH W GIULIANI FOR MAYOR OF NEW YORK CITY MR GIULIANI IS A FORMER US ATTORNEY FOR MANHATTAN WITH VOTERS GRUMBLING THAT HARDLY ANY OF THE CANDIDATES SERIOUSLY ADDRESSED THEIR CONCERNS MOST OF THE JOBSEEKERS FOLLOWED TO THE LETTER THE STRATEGIES OUTLINED BY THEIR HANDLERS LOW TURNOUT WAS THOUGHT TO BE A WORRY IN ALL THE BIG RACES PRESIDENT CLINTON AND NATIONAL DEMOCRATIC STRATEGISTS VIEW NEW JERSEY AS TOMORROW'S MOST SIGNIFICANT VOTE MR FLORIO IS RUNNING FOR A SECOND TERM AFTER PUSHING THROUGH A 28 BILLION TAX INCREASE IN 1990 THAT OUTRAGED MANY NEW JERSEY VOTERS HE STARTED THE CAMPAIGN YEAR AS THE MOST VULNERABLE CANDIDATE OF 1993 BUT MOST POLLS PLACED HIM COMFORTABLY BUT NOT SAFELY IN THE LEAD ON ELECTION EVE JAMES CARVILLE AND PAUL BEGALA THE SAME STRATEGISTS WHO MASTERMINDED MR CLINTON'S PRESIDENTIAL CAMPAIGN SOUGHT WITH SOME SUCCESS TO CONVINCE SKEPTICAL NEW JERSEY VOTERS THAT THE TAX INCREASE HAD BEEN GOOD FOR THEM BECAUSE IT REPRESENTED A SERIOUS EFFORT TO DEAL WITH THE STATE'S UNDERLYING PROBLEMS MR CLINTON'S ADVISERS ALMOST SURELY WILL ARGUE IN 1996 THAT THE PRESIDENT DESERVES TO BE REELECTED BECAUSE HE ALSO PRESCRIBED NASTY MEDICINE TO GET AT THE NATION'S ILLS MR CLINTON COULD USE A VICTORY TOMORROW SINCE HE WAS ELECTED PRESIDENT HIS PARTY HAS LOST TWO SENATE RACES IN GEORGIA AND TEXAS AND WATCHED A REPUBLICAN TAKE OVER AS MAYOR OF LOS ANGELES HIS BEST CHANCE TO RACK UP WINS SEEM TO BE NEW JERSEY FOLLOWED BY NEW YORK CITY WHERE MAYOR DINKINS AND MR GIULIANI ARE LOCKED IN A TIGHT RACE HE CAMPAIGNED IN BOTH PLACES THE PRESIDENT WASN'T INVITED TO CAMPAIGN IN VIRGINIA WHERE HIS RATINGS ARE LOW MS TERRY PROBABLY THOUGHT SHE DIDN'T NEED HELP BECAUSE HER CAMPAIGN LOOKED SO PROMISING A FEW MONTHS AGO WHEN SHE WAS RIDING A 25POINT LEAD IN THE PUBLICOPINION POLLS BUT THAT WAS ALWAYS A MIRAGE VIRGINIA IS BASICALLY A REPUBLICAN STATE THESE DAYS AND VOTERS ARE BECOMING DISENCHANTED WITH BOTH THEIR DEMOCRATIC SENATOR CHUCK ROBB AND THEIR DEMOCRATIC GOVERNOR DOUGLAS WILDER WHO HAVE SPENT THE LAST FEW YEARS FEUDING WITH ONE ANOTHER THE EASYGOING SNUFFDIPPING MR ALLEN SEEMS LIKE A COMFORTABLE CHANGE TO MANY DISENCHANTED VOTERS MS TERRY DIDN'T HELP HER CAUSE BY RUNNING A LACKLUSTER CAMPAIGN IN WHICH SHE SEEMED TO BE SUGGESTING THAT VIRGINIA HAVING ELECTED MR WILDER AS ITS FIRST BLACK GOVERNOR SHOULD NOW ELECT HER AS ITS FIRST FEMALE GOVERNOR BUT 1993 ISN'T 1992 THE SOCALLED YEAR OF THE WOMAN WHEN CALIFORNIA SENT TWO WOMEN TO WASHINGTON BARBARA BOXER AND DIANNE FEINSTEIN TO SERVE IN THE SENATE IT'S JUST NOT ENOUGH TO BE A WOMAN ANYMORE SAYS FORMER GOP REP VIN WEBER THEY'RE BEING TREATED JUST LIKE MEN NOW SAYS GOP THEORETICIAN KEVIN PHILLIPS MS TERRY OPENED HER CAMPAIGN BY URGING THE STATE TO ADOPT A FIVEDAY WAITING PERIOD FOR THE PURCHASE OF HANDGUNS A STATE VERSION OF THE BRADY BILL NOW MOVING THROUGH CONGRESS BUT SHE HERSELF HAD OPPOSED THE IDEA AS RECENTLY AS JANUARY AND SHE HAD BEEN ENDORSED BY THE NATIONAL RIFLE ASSOCIATION IN HER TWO SUCCESSFUL CAMPAIGNS FOR ATTORNEY GENERAL SHE ALSO TRIED TO TIE MR ALLEN TO HIS RUNNING MATE FOR LIEUTENANT GOVERNOR MICHAEL FARRIS A SUPPORTER OF THE HOMESCHOOL MOVEMENT AND AN ACTIVE LEADER OF THE CHRISTIAN RIGHT POLLS PUT MR FARRIS WELL BEHIND HIS DEMOCRATIC OPPONENT DONALD BEYER THE INCUMBENT LIEUTENANT GOVERNOR AND THEY SHOW MR FARRIS HAVING ALMOST NO NEGATIVE IMPACT ON THE RACE FOR GOVERNOR IN NEW JERSEY THE POLL NUMBERS ARE CLOSE ENOUGH TO SUGGEST MRS WHITMAN A WEALTHY FORMER PRESIDENT OF THE STATE UTILITIES BOARD STILL HAS AN OUTSIDE CHANCE TO SQUEAK THROUGH TO VICTORY BUT THIS RACE SHOULDN'T HAVE EVEN BEEN CLOSE MRS WHITMAN ALWAYS HAD A BETTER SHOT AT VICTORY THAN MR ALLEN IN VIRGINA BUT SHE MADE SOME MAJOR CAMPAIGN ERRORS CHIEF AMONG THEM A PROPOSED 30 CUT IN THE STATE'S INCOME TAXES THAT WAS SUPPOSED TO SHOW JUST HOW DIFFERENT SHE WAS FROM THE TAXIMPOSING GOV FLORIO BUT HER PROPOSAL WAS MET WITH WIDESPREAD SKEPTICISM THAT TURNED TO CYNICISM WHEN MR FLORIO CHARGED SHE HAD NO PLAN TO PAY FOR IT THIS IS THE LAST DEATH THROES OF TRICKLEDOWN ECONOMICS SAYS MR BEGALA WIN OR LOSE MR FLORIO PROVED THAT IN THE HARDHEADED 1990S PUSHING BIG TAX INCREASES ISN'T NECESSARILY A KISS OF DEATH THE POINT IS MR FLORIO IS IN THE BALLGAME SAYS GOP POLLSTER BILL MCINTURFF MR FLORIO'S HANDLERS ALSO CLEVERLY PLAYED UP THE CRIME ISSUE BY TARGETING THE ELEGANT MRS WHITMAN AS JUST ANOTHER FRONT FOR A GUNHAPPY NRA SHE WAS NEVER ABLE TO DODGE THAT BULLET IN VIRGINIA MR ALLEN MANAGED TO LOOK TOUGH ON CRIME EVEN THOUGH HE OPPOSES A FIVEDAY WAITING PERIOD TO BUY HANDGUNS BY CALLING FOR AN END TO PAROLE FOR VIRGINIANS CONVICTED OF VIOLENT CRIMES AND FOR PUTTING WELFARE RECIPIENTS TO WORK HE IS SUPPORTED BY THE NRA CRIME IS ALSO ON THE MINDS OF VOTERS IN TOMORROW'S OTHER HIGHVISIBILITY RACE A NECKANDNECK REPRISE OF THE 1989 CLIFFHANGER FOR MAYOR OF NEW YORK BETWEEN MR DINKINS THE CITY'S FIRST BLACK MAYOR AND MR GIULIANI MR DINKINS WON BY 50000 VOTES FOUR YEARS AGO MR GIULIANI HAMMERS AWAY AT THE DECLINING QUALITY OF LIFE IN NEW YORK CITY SAYING HE WOULD GET TOUGH ON STREETLEVEL DRUG DEALERS CAR VANDALS AND AGGRESSIVE PANHANDLERS HE SEES A CITY ON THE VERGE OF COLLAPSE THAT MUST BE RESCUED FROM ESCALATING CRIME SOCIAL ILLS AND A BLOATED BUREAUCRACY IN THE FINAL HOURS OF THE CAMPAIGN HE WORKED WHITE ETHNIC NEIGHBORHOODS OUTSIDE MANHATTAN AS A KIND OF GRITTY MAN AGAINST THE SYSTEM MR DINKINS ON THE OTHER HAND TALKS ABOUT NEW YORK AS A GORGEOUS MOSAIC AND A WORLDCLASS CITY WITH NO MORE THAN THE USUAL SHARE OF BIGCITY PROBLEMS MR DINKINS TRIED TO PORTRAY HIMSELF AS THE NICE GUY RUNNING AGAINST MEANTEMPERED MR GIULIANI UNLIKE THE LONELY MR GIULIANI HE SURROUNDED HIMSELF WITH CELEBRITIES BARBRA STREISAND CAMPAIGNED IN HER NATIVE BROOKLYN AND STEVIE WONDER SOMETIMES CROSSED PATHS WITH JESSE JACKSON STILL IN THE FINAL WEEKEND OF THE CAMPAIGN HE GOT SERIOUS ON THE CRIME ISSUE HE USED THE POWER OF HIS OFFICE AND HIS CONNECTIONS TO PENNSYLVANIA AVENUE TO ANNOUNCE THE CITY WOULD GET 37 MILLION IN FEDERAL FUNDS TO HIRE 400 MORE POLICE OFFICERS TO PATROL THE CITY'S MOST DANGEROUS HOUSING PROJECTS GERALD F SEIB IN WASHINGTON AND HEIDI EVANS IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9311010078 931101 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED SEVEN NEW LISTINGS INCLUDING SIX INITIAL PUBLIC OFFERINGS WHILE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 13 NEW LISTINGS FOR ITS NATIONAL MARKET SYSTEM INCLUDING 12 INITIAL OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED ONE NEW LISTING THE BIG BOARD BEGAN TRADING SHARES IN THE FOLLOWING INITIAL OFFERINGS PAUL REVERE CORP WORCESTER MASS A DISABILITY INSURER UNDER PRL CHELSEA GCA REALTY INC ROSELAND NJ A REAL ESTATE INVESTMENT TRUST UNDER CCG COBRA INDUSTRIES INC GOSHEN IND A MAKER OF RECREATIONAL VEHICLES UNDER COI CBL & ASSOCIATES PROPERTIES INC CHATTANOOGA TENN A REAL ESTATE INVESTMENT TRUST COMPANY UNDER CBL REGENCY REALTY CORP JACKSONVILLE FLA A REAL ESTATE INVESTMENT TRUST UNDER REG AND EXIDE CORP BLOOMFIELD HILLS MICH A MAKER OF LEAD ACID BATTERIES UNDER EX THE BIG BOARD ALSO BEGAN TRADING CHECKPOINT SYSTEMS INC THOROFARE NJ AN ELECTRONIC ANTITHEFT AND ACCESS SYSTEM MAKER UNDER CKP CHECKPOINT SYSTEMS FORMERLY TRADED OVERTHECOUNTER RENO AIR INC RENO NEV A REGIONAL AIR CARRIER JOINED THE NATIONAL MARKET SYSTEM FROM THE NASDAQ SMALLCAP MARKET UNDER RENO THE AMEX LISTED MSFT COMMON EQUITYLINKED SECURITIES SYMBOL MEK WHICH PAY AN AMOUNT AT MATURITY RELATED TO THE PRICE OF MICROSOFT CORP COMMON STOCK THE AMERICAN STOCK EXCHANGE BEGAN TRADING OPTIONS IN NEW PLAN REALTY TRUST AND LONGTERM OPTIONS ON CHIRON CORP WHILE THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON SPAIN FUND INC BOTH EXCHANGES BEGAN TRADING OPTIONS ON GROWTH FUND OF SPAIN INC ASIA PACIFIC FUND INC AND TEMPLETON EMERGING MARKETS FUND INC THE PACIFIC STOCK EXCHANGE BEGAN TRADING COMMON STOCK OF AMERICAN POWER CONVERSION CORP AND OPTIONS ON PRICE/COSTCO INC 9311010077 931101 POLITICS & POLICY HIGH COURT LIFTS ORDER ON MILITARY HOMOSEXUALS WASHINGTON THE SUPREME COURT CLEARED THE WAY FOR THE CLINTON ADMINISTRATION TO PUT INTO EFFECT ITS NEW DON'T ASK DON'T TELL POLICY ON HOMOSEXUALS IN THE MILITARY THE JUSTICES TEMPORARILY LIFTED A FEDERAL TRIAL JUDGE'S ORDER THAT BROADLY PROHIBITED THE PENTAGON FROM DISCRIMINATING AGAINST HOMOSEXUALS FRIDAY'S ACTION CAME IN THE CASE OF A GAY SAILOR WHO HAD CHALLENGED THE MILITARY'S MORE SEVERE PRECLINTON BAN ON HOMOSEXUALS THE ADMINISTRATION IS APPEALING THE TRIAL JUDGE'S RULING THAT SUCH DISCRIMINATION VIOLATES THE CONSTITUTIONAL GUARANTEE OF EQUAL PROTECTION OF THE LAWS THAT APPEAL IS SCHEDULED TO BE HEARD IN DECEMBER BY THE FEDERAL APPEALS COURT IN SAN FRANCISCO HOWEVER THE APPEALS COURT RULES THE CASE IS LIKELY TO COME BACK BEFORE THE SUPREME COURT NEXT YEAR THE HIGH COURT DIDN'T EXPLAIN ITS ACTION WHICH WAS ANNOUNCED IN A BRIEF UNSIGNED ORDER THERE WEREN'T ANY DISSENTS 9311010076 931101 VENCOR COMPLETES TENDER OFFER LOUISVILLE KY VENCOR INC SAID IT COMPLETED A DUTCH AUCTION TENDER OFFER FOR AS MANY AS 15 MILLION COMMON SHARES THE COMPANY SAID THAT BASED ON A PRELIMINARY COUNT ABOUT 13 MILLION COMMON SHARES OR 75 OF COMMON SHARES CURRENTLY OUTSTANDING WERE TENDERED VENCOR SAID IT WILL BUY ALL THE TENDERED SHARES FOR 24 EACH VENCOR OWNS OR LEASES 26 LONGTERM CARE HOSPITALS IN A DUTCH AUCTION A COMPANY STATES THE NUMBER OF SHARES IT WILL BUY BUT INSTEAD OF STATING A SINGLE PURCHASE PRICE THE COMPANY SETS A PRICE RANGE WITHIN WHICH HOLDERS CAN TENDER THEIR SHARES THE HIGHEST PRICE WITHIN THAT RANGE NECESSARY TO ACQUIRE ALL THE SHARES THE COMPANY WANTS BECOMES THE PURCHASE PRICE FOR ALL THE SHARES 9311010075 931101 INTERNATIONAL FRENCH JOBLESS RATE CLIMBS PARIS THE RISE IN FRANCE'S UNEMPLOYMENT CONTINUED IN SEPTEMBER WITH AN ADDITIONAL 26400 JOB SEEKERS JOINING THE JOBLESS ROLLS THAT PUT THE UNEMPLOYMENT RATE AT 118 OF THE WORK FORCE UP FROM 117 IN AUGUST THE LABOR MINISTRY SAID A TOTAL OF 3242200 PEOPLE WERE LISTED ON THE UNEMPLOYMENT ROLLS THE FIGURES UNDERSCORED THE ANGUISH OVER UNEMPLOYMENT IN FRANCE DEMONSTRATED BY STRIKING AIR FRANCE WORKERS IN REJECTION OF A PLAN TO CUT 4000 JOBS AT THE UNPROFITABLE AIRLINE THE STRIKE FORCED THE GOVERNMENT TO WITHDRAW THE PLAN 9311010074 931101 BUSINESS BRIEF HAHN AUTOMOTIVE WAREHOUSE INC AUTO WORKS TO BE ACQUIRED FROM NORTHERN RETAIL CORP HAHN AUTOMOTIVE WAREHOUSE INC ROCHESTER NY SAID IT AGREED TO ACQUIRE AUTO WORKS HOLDINGS INC A UNIT OF CLOSELY HELD NORTHERN RETAIL CORP IN A TRANSACTION THAT WILL DOUBLE ITS ANNUAL SALES HAHN SAID IT WILL PAY 13 MILLION IN CASH FOR AUTO WORKS' CAPITAL STOCK NORTHERN RETAIL IS BASED IN PHOENIX ANALYSTS EXPECT HAHN TO REPORT 122 MILLION IN SALES FOR THE YEAR ENDED SEPT 30 HAHN PRESIDENT ELI N FUTERMAN SAID AUTO WORKS HAD 116 MILLION IN SALES IN THE LATEST FISCAL YEAR WHICH ENDED IN JANUARY AUTO WORKS OPERATES 159 RETAIL STORES IN ILLINOIS INDIANA KENTUCKY MICHIGAN MISSOURI OHIO AND WEST VIRGINIA AND HAS A DISTRIBUTION CENTER IN DAYTON OHIO HAHN HAS 86 ADVANTAGE AUTO STORES IN THE NORTHEAST AND MIDWEST WHICH ARE GEARED TO THE COMMERCIAL WHOLESALE MARKET AS PART OF THE TRANSACTION HAHN WILL ASSUME 30 MILLION OF AUTO WORKS' ACCOUNTS PAYABLE BUT NO BANK DEBT 9311010072 931101 INTERNATIONAL BRIEF BANCO ESPANOL DE CREDITO PRETAX PROFIT PLUNGES 76 HEAVY PROVISIONS ARE CITED BANCO ESPANOL DE CREDITO A SPANISH BANK KNOWN AS BANESTO REPORTED THAT CONSOLIDATED PRETAX PROFIT DROPPED 76 TO 991 BILLION PESETAS 74 MILLION IN THE FIRST NINE MONTHS OF 1993 FROM 4115 BILLION PESETAS IN THE SAME PERIOD OF 1992 THE DROP WAS THE RESULT OF HEAVY PROVISIONING FOR POTENTIAL LOSSES ON LOANS AND OTHER ITEMS BANESTO NOTED THAT THE PARENT BANK DEVOTED ITS NINEMONTH OPERATING PROFIT ENTIRELY TO PROVISIONS BOOSTING PROVISIONS AT THE PARENT BANK ALONE 167 TO 56 BILLION PESETAS FROM 21 BILLION A YEAR EARLIER CONSOLIDATED NET INTEREST INCOME DECLINED 9 TO 15864 BILLION PESETAS FROM 17436 BILLION A YEAR EARLIER THE BANK REPORTED GROSS INTEREST INCOME GREW 76 IN THE FIRST NINE MONTHS TO 63930 BILLION PESETAS FROM 59412 BILLION BUT INTEREST EXPENSES GREW MORE QUICKLY JUMPING 15 TO 48067 BILLION PESETAS FROM 41975 BILLION 9311010071 931101 NATION'S BIGGEST CHARITIES HAD 4 GAIN LAST YEAR IN GIFTS FROM PRIVATE SOURCES BY PAMELA SEBASTIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NATION'S BIGGEST CHARITIES LOGGED A 4 RISE IN PRIVATE GIFTS LAST YEAR AND ARE HOPING THAT THIS YEAR'S HOLIDAY DRIVES WILL BE AIDED BY TAXLAW CHANGES AND A RECOVERING ECONOMY ON AVERAGE THE 400 LARGEST US CHARITIES WHICH INCLUDE COLLEGES MODESTLY BEAT INFLATION LAST YEAR ACCORDING TO DATA GATHERED BY THE CHRONICLE OF PHILANTHROPY IN WASHINGTON BUT MANY INDIVIDUAL CHARITIES AND CATEGORIES FARED MUCH BETTER THE SALVATION ARMY MARCHED BACK TO THE TOP OF THE 1992 LIST AFTER BEING BUMPED TO THE NO 2 SPOT THE PREVIOUS YEAR BY THE UNITED JEWISH APPEAL WHICH WAS AIDED BY A SPECIAL FUNDRAISING DRIVE IN 1992 THE SALVATION ARMY RAISED 7263 MILLION UP 12 FROM THE PREVIOUS YEAR THE UNITED JEWISH APPEAL MOVED TO THE NO 3 SLOT WITH GIFTS OF 4074 MILLION DOWN 39 FROM 1991 CATHOLIC CHARITIES USA WAS THE SECONDBIGGEST CHARITY IN 1992 WITH 4109 MILLION RAISED AN INCREASE OF 12 SECOND HARVEST A GROUP THAT RECEIVES MOST OF ITS PRIVATE SUPPORT IN DONATED FOOD WAS RANKED FOURTH FOR 1992 WITH 4072 MILLION IN GIFTS UP ABOUT 1 FROM THE PRIOR YEAR THE AMERICAN RED CROSS SLIPPED A NOTCH TO NO 5 WITH CONTRIBUTIONS OF 3947 MILLION IN 1992 UP 2 FROM THE PREVIOUS YEAR THE SURVEY COUNTED ONLY GIFTS FROM PRIVATE DONORS SUCH AS INDIVIDUALS FOUNDATIONS AND CORPORATIONS NOT TOTAL INCOME AND THE RANKINGS MEASURE FISCAL YEARS 1992 AND 1991 WHICH ENDED IN SEVERAL DIFFERENT MONTHS AS CHARITIES GEAR UP FOR THE IMPORTANT HOLIDAY FUNDRAISING SEASON MUSEUMS IN PARTICULAR ARE HOPING TO BENEFIT FROM THE NEW TAX LAW WHICH MAKES GIFTS OF ART FULLY DEDUCTIBLE FOR WEALTHY DONORS MANY GROUPS COUNT ON BIG SEASONAL GIFTS THE SALVATION ARMY FOR INSTANCE RAISES 1012 OF ITS MONEY AROUND THE YEAREND HOLIDAYS CHRISTMAS IS BECOMING MORE AND MORE IMPORTANT TO US AS NEEDS FOR SERVICES EXTEND ALL WINTER SAID COL LEON FERRAEZ A SALVATION ARMY SPOKESMAN HE SAID THE GROUP EXPECTS TO RAISE SOME 175 MILLION THIS CHRISTMASTIME THE YWCA OF THE USA LOGGED THE BIGGEST INCREASE LAST YEAR WITH A 74 GAIN THAT BROUGHT TOTAL GIFTS TO 3171 MILLION AIDED BY A SUCCESSFUL DIRECTMAIL CAMPAIGN AND SEVERAL CORPORATE GRANTS STANFORD UNIVERSITY LED THE LIST OF COLLEGES BUMPING HARVARD UNIVERSITY TO THE NO 2 POSITION STANFORD RAISED 2081 MILLION IN 1992 UP 15 WHILE HARVARD RAISED 2062 MILLION UP 5 COLLEGES AND UNIVERSITIES WHICH MAKE UP THE THE LARGEST CATEGORY IN THE SURVEY REPORTED AN AVERAGE GAIN OF 87 LAST YEAR OTHER CATEGORIES WHERE GAINS BETTER THAN DOUBLED THE INFLATION RATE INCLUDED PUBLIC BROADCASTING STATIONS COMMUNITY FOUNDATIONS HUMAN SERVICES GROUPS AND RELIGIOUS GROUPS CHARITIES THAT FARED POORLY INCLUDED INTERNATIONAL RELIEF GROUPS WHICH SAW AN AVERAGE 44 DECLINE DESPITE WIDESPREAD CRISISRELATED APPEALS DURING 1992 PERFORMING ARTS GROUPS REGISTERED NO CHANGE AND MUSEUMS LOGGED A 69 INCREASE IN DONATIONS SEPARATELY THE NONPROFIT TIMES A SKILLMAN NJBASED PUBLICATION SAID THE LUTHERAN SOCIAL MINISTRIES ROSE TO THE TOP OF ITS 1992 SURVEY OF 100 INSTITUTIONS WITH TOTAL INCOME OF 194 BILLION CATHOLIC CHARITIES WAS NO 2 WITH 185 BILLION THE NONPROFIT TIMES POLL COUNTS ALL INCOME SOURCES INCLUDING GOVERNMENT SUPPORT WHICH IT SAID IS THE BIGGEST GROWTH AREA FOR CHARITABLE GIVING GOVERNMENT FUNDING IN THE FORM OF GRANTS CONTRACTS SERVICES AND THE LIKE ACCOUNTED FOR 20 OF TOTAL INCOME IN THE NONPROFIT TIMES' SURVEY 9311010070 931101 WHO'S NEWS US FOREST SERVICE CHIEF IS SHIFTED TO ANOTHER POST WASHINGTON THE AGRICULTURE DEPARTMENT BOWING TO CONCERNS FROM ENVIRONMENTALISTS SHIFTED THE CHIEF OF THE US FOREST SERVICE TO ANOTHER POST F DALE ROBERTSON A CAREER OFFICIAL WHO HAS COME UNDER FIRE FROM ENVIRONMENTALISTS FOR TILTING THE AGENCY TOO FAR TOWARD THE INTERESTS OF TIMBER COMPANIES STEPPED DOWN AS FOREST SERVICE CHIEF THE DEPARTMENT SAID LATE LAST WEEK MR ROBERTSON WHO HAD SERVED IN THAT POSITION SINCE 1987 WILL BECOME A SPECIAL ASSISTANT TO DEPUTY AGRICULTURE SECRETARY RICHARD ROMINGER IT HAD LONG BEEN EXPECTED THAT MR ROBERTSON A CONTROVERSIAL FIGURE WITHIN THE AGENCY AND ON CAPITOL HILL WOULD BE MOVED OUT OF THE FOREST SERVICE JOB ENVIRONMENTALISTS STEPPED UP THEIR CAMPAIGN AGAINST MR ROBERTSON AFTER PRESIDENT CLINTON TOOK OFFICE AND AGRICULTURE SECRETARY MIKE ESPY SAID SEVERAL WEEKS AGO THAT THE FOREST SERVICE NEEDED A CHANGE IN LEADERSHIP MR ROBERTSON WASN'T AVAILABLE TO COMMENT HIS JOB WILL BE FILLED TEMPORARILY BY DAVE UNGER WHO PREVIOUSLY WAS ASSOCIATE DEPUTY CHIEF FOR THE NATIONAL FOREST SYSTEM GEORGE LEONARD WHO SERVED AS ASSOCIATE CHIEF OF THE FOREST SERVICE UNDER MR ROBERTSON ALSO WAS SHIFTED OUT OF HIS JOB MR LEONARD WILL ASSIST THE ASSISTANT SECRETARY FOR NATURAL RESOURCES AND THE ENVIRONMENT ACCORDING TO THE AGRICULTURE DEPARTMENT 9311010069 931101 TECHNOLOGY BRIEF SUN MICROSYSTEMS INC TWO UNITS TO HELP MANAGE MCCAW'S WIRELESS NETWORK TWO UNITS OF SUN MICROSYSTEMS INC MOUNTAIN VIEW CALIF HAVE BEEN SELECTED BY MCCAW CELLULAR COMMUNICATIONS INC TO HELP MANAGE MCCAW'S AMBITIOUS NATIONWIDE WIRELESS DATA NETWORK SUNCONNECT AND SUNNETWORKS SAID THEY WILL PROVIDE NETWORK MANAGEMENT INTEGRATION SERVICES FOR MCCAW'S SOCALLED CELLULAR DIGITAL PACKET DATA NETWORK FINANCIAL TERMS WEREN'T DISCLOSED MCCAW BASED IN KIRKLAND WASH PLANS TO HOOK UP 105 US CITIES WITH A NETWORK THAT WILL ALLOW PORTABLE COMPUTERS AND COMMUNICATION DEVICES TO SEND AND RECEIVE DATA MORE QUICKLY THAN CONVENTIONAL CELLULAR PHONE SYSTEMS SUN'S SERVICES AND TECHNOLOGY ARE EXPECTED TO ALLOW MANAGERS WITH COMPUTER WORKSTATIONS TO MONITOR AND CONTROL CONNECTIONS TO MILLIONS OF MOBILE CUSTOMERS 9311010068 931101 BUSINESS BRIEF PETER KIEWIT SONS INC UNIT COMPLETES ACQUISITION OF CONTROLLING CTEC STAKE RCN CORP A SUBSIDIARY OF PETER KIEWIT SONS INC SAID IT COMPLETED ACQUISITION OF A CONTROLLING INTEREST IN CTEC CORP WILKESBARRE PA AN OPERATOR OF TELEPHONE AND CABLETELEVISION SERVICES RCN IS A PRIVATE COMPANY FORMED TO INVEST IN RESIDENTIAL TELEPHONE AND CABLE TELEVISION INDUSTRIES KIEWIT IN JUNE SAID IT AGREED TO BUY THE STAKE FOR 196 MILLION RCN ACQUIRED ABOUT 57 MILLION CTEC COMMON AND CLASS B COMMON SHARES OR 34 OF THE EQUITY AND 57 OF VOTING CONTROL FROM A GROUP INCLUDING CTEC'S CHAIRMAN ANDREW J SORDONI III AND VICE CHAIRMAN WILLIAM B SORDONI DAVID C MCCOURT PRESIDENT AND CHIEF EXECUTIVE OF RCN WAS ELECTED CHAIRMAN AND CHIEF EXECUTIVE OF CTEC WHICH HAD REVENUE OF 257 MILLION IN 1992 PETER KIEWIT SONS IS AN OMAHA NEB COMPANY WITH INTERESTS IN CONSTRUCTION MINING COMMUNICATIONS AND ENERGY 9311010067 931101 WHAT'S NEWS WORLDWIDE HAITIAN RIGHTISTS SOUGHT A REPLACEMENT FOR OUSTED PRESIDENT ARISTIDE TWENTY SMALL RIGHTWING PARTIES BOOSTED BY THE FAILURE OF A UN PLAN TO RESTORE ARISTIDE TO POWER CALLED FOR NEW ELECTIONS BUT THEIR BID FOR POWER WAS WEAKENED BY INFIGHTING OVER WHO SHOULD ASSUME THE PRESIDENCY SAYING THE UN PLAN IS DEAD THE RIGHTWING GROUPS DEMANDED THE RESIGNATIONS OF ARMY CHIEF CEDRAS AND UN ENVOY CAPUTO THE RIGHTISTS MANY OF WHOM REVERE THE MEMORY OF THE LATE DICTATOR PAPA DOC DUVALIER CLAIM ARISTIDE LOST CREDIBILITY ON SATURDAY THE UN DEADLINE FOR HIS RETURN DIPLOMATS INSISTING THE UN PLAN ISN'T DEAD ARE TRYING TO ARRANGE A MEETING THIS WEEK WITH CEDRAS PARLIAMENTARY LEADERS AND EITHER ARISTIDE OR INTERIM PRIME MINISTER MALVAL FEDERAL PROSECUTORS ARE INVESTIGATING WHETHER MONEY FROM A NOWDEFUNCT ARKANSAS THRIFT WAS ILLEGALLY DIVERTED IN THE MID1980S TO LOCAL POLITICIANS INCLUDING A REELECTION CAMPAIGN OF THENGOV CLINTON THE PROBE IS THE LATEST DEVELOPMENT IN A LARGER INVESTIGATION OF MADISON GUARANTY SAVINGS & LOAN WHITE HOUSE OFFICIALS SCRAMBLED TO EXPLAIN WHY THEIR OWN ESTIMATES SHOW 40 OF THE NATION'S INSURED POPULATION WOULD INITIALLY PAY MORE UNDER CLINTON'S HEALTH PLAN WHITE HOUSE AIDE MAGAZINER SAID THAT FOCUSING ON THE 40 FIGURE ALONE IS MISLEADING SINCE OVER HALF OF THOSE PEOPLE WILL GET BETTER BENEFITS THE MEDICARE SYSTEM INTENDS TO STOP PAYING FOR CERTAIN BLOOD TESTS WHEN THEY AREN'T MEDICALLY NECESSARY THE CHANGE COULD LEAD TO A SHARP DROP IN BILLINGS FOR MEDICAL LABS FIREFIGHTERS PUT OUT NEARLY ALL OF THE BRUSH FIRES THAT HAD SWEPT THROUGH SOUTHERN CALIFORNIA LAST WEEK CALM COOLER WEATHER ALLOWED FIRE CREWS TO EXTINGUISH OR CONTAIN MOST OF THE 15 FIRES THAT HAD RAVAGED THE REGION FOR FOUR DAYS DESTROYING SOME 730 HOMES AND SCORCHING ABOUT 180000 ACRES GUNMEN SHOUTING TRICK OR TREAT BURST INTO A VILLAGE PUB IN NORTHERN IRELAND AND KILLED SEVEN PEOPLE ATTENDING A HALLOWEEN PARTY AN OUTLAWED PROTESTANT PARAMILITARY GROUP CLAIMED RESPONSIBILITY FOR SATURDAY'S ATTACK AND SAID IT WAS TO AVENGE AN IRISH REPUBLICAN ARMY BOMBING A WEEK EARLIER US ENVOY OAKLEY WAS SCHEDULED TO ARRIVE IN MOGADISHU TODAY TO TRY TO HEAL A RIFT BETWEEN THE UN AND SOMALI CLAN LEADER AIDID OAKLEY PLANS TO BE IN THE REGION FOR A WEEK MEANWHILE 2000 BACKERS OF AIDID'S PARTY STAGED A PROTEST AGAINST UN CHIEF BOUTROSGHALI ACCUSING HIM OF TURNING A PEACE MISSION INTO ARMED INTERVENTION AID FLIGHTS TO SARAJEVO WERE SUSPENDED AFTER A FRENCH OFFICER WAS WOUNDED IN A BURST OF GUNFIRE AT THE BOSNIAN CAPITAL'S AIRPORT IT WASN'T CLEAR WHETHER THE SHOTS WERE FIRED BY SERBS BESIEGING THE CITY OR ITS MUSLIM DEFENDERS IN CENTRAL BOSNIA TWO CIVILIANS DIED IN AN ATTACK ON A FUNERAL FOR VICTIMS OF A MASSACRE BLAMED ON CROATS PERUVIANS APPROVED A NEW CONSTITUTION OPENING THE WAY FOR PRESIDENT FUJIMORI'S REELECTION BID IN 1995 ACCORDING TO PROJECTIONS MADE BY POLLING AGENCIES FUJIMORI HAD PORTRAYED YESTERDAY'S REFERENDUM AS A PLEBISCITE ON HIS THREEYEAROLD GOVERNMENT ESPECIALLY ON HIS USE OF AUTHORITARIAN MEASURES AGAINST GUERRILLAS TWO PALESTINIANS WERE KILLED IN CONFRONTATIONS WITH ISRAELIS IN THE OCCUPIED TERRITORIES AND JEWISH SETTLERS BLOCKED ROADS AND STONED ARAB CARS IN THE WEST BANK OVER FRIDAY'S KILLING OF A SETTLER BY HAMAS ISLAMIC MILITANTS THE SETTLERS VOWED TO PREVENT ARAB VEHICLES FROM TRAVELING IN THE WEST BANK AND GAZA STRIP TODAY DEFENSE SECRETARY ASPIN ORDERED THE FIRST POSTCOLD WAR REVIEW OF THE US ARSENAL OF NUCLEAR WEAPONS ONE THAT COULD CHANGE THE SIZE AND THE STRUCTURE OF THE COUNTRY'S NUCLEAR FORCES THE SUPREME COURT CLEARED THE WAY FOR THE CLINTON ADMINISTRATION TO PUT INTO EFFECT ITS NEW DON'T ASK DON'T TELL POLICY ON HOMOSEXUALS IN THE MILITARY THE JUSTICES ON FRIDAY TEMPORARILY LIFTED A FEDERAL TRIAL JUDGE'S ORDER THAT BARRED THE PENTAGON FROM DISCRIMINATING AGAINST HOMOSEXUALS DIED FEDERICO FELLINI 73 ITALIAN FILM DIRECTOR WHO COMBINED FANTASY SPECTACLE AND EARTHINESS TO CREATE LA DOLCE VITA 8 1/2 AND LA STRADA IN ROME AFTER SUFFERING A RECENT HEART ATTACK 9311010066 931101 DELAY IN SEEKING MINIMUMPAY RISE IS SOUGHT BY REICH BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LABOR SECRETARY ROBERT REICH AFTER MONTHS OF VACILLATION ON THE ISSUE IS RECOMMENDING THAT THE ADMINISTRATION WAIT UNTIL NEXT YEAR TO SEEK AN INCREASE IN THE MINIMUM WAGE AS RECENTLY AS TWO WEEKS AGO MR REICH SAID HE WAS PREPARED TO RECOMMEND THAT THE WHITE HOUSE PRESS FOR A BASE WAGE OF 475 AN HOUR 50 CENTS ABOVE THE CURRENT MINIMUM THAT INCREASE WOULD HAVE INCLUDED BETWEEN 15 CENTS AND 34 CENTS AN HOUR IN HEALTH BENEFITS DICTATED BY THE GOVERNMENT FOR EMPLOYERS UNDER THE PROPOSED CLINTON HEALTHCARE PACKAGE BUT MR REICH SAID FRIDAY THAT HE NOW WANTS TO SET ASIDE ANY WAGE BOOST BECAUSE OF THE HEALTHCARE PROPOSAL WHICH IS CONTROVERSIAL BECAUSE OF ITS PROPOSED REQUIREMENT THAT EMPLOYERS PAY 80 OF THE INSURANCE COSTS FOR ALL EMPLOYEES THE HEALTHCARE PROPOSAL HAS BROUGHT COMPLAINTS FROM SUCH INDUSTRIES AS RESTAURANTS AND HOTELS MANY OF WHICH CURRENTLY DON'T PROVIDE INSURANCE FOR THEIR WORKERS THOSE INDUSTRIES CONTEND THAT THEY WILL HAVE TO CUT BACK ON STAFF IF THEY ARE FORCED TO PAY BENEFITS AND THEY FUME THAT A MINIMUMWAGE INCREASE WOULD STRIKE DIRECTLY AT THEM TOO OFTEN SUCH BUSINESSES EMPLOY LOWWAGE WORKERS IT ISN'T CLEAR WHETHER MR REICH WANTS TO WAIT UNTIL AFTER CONGRESS PASSES HEALTHREFORM LEGISLATION POSSIBLY NOT UNTIL LATE NEXT YEAR OR WHETHER THE LABOR SECRETARY WOULD ENCOURAGE A WAGE BOOST BEFORE THE HEALTH DEBATE IS CONCLUDED THE DECISION IS CERTAIN TO DISAPPOINT LABOR UNIONS WHICH HAVE BEEN ENCOURAGING AN INCREASE IN THE MINIMUM WAGE TO 475 AN HOUR THIS YEAR AND 525 NEXT YEAR IN ADDITION REP MARTIN SABO D MINN HAS INTRODUCED LEGISLATION THAT WOULD LIFT THE PAY RATE TO 625 AN HOUR IN HIS CAMPAIGN PRESIDENT CLINTON ADVOCATED RAISING THE MINIMUM WAGE AND INDEXING IT SO THAT CONGRESS WOULDN'T FACE POLITICAL BATTLES EACH TIME IT WANTS TO LIFT THE PAY RATE 9311010065 931101 NATIONAL CITY CORP CLEVELAND NATIONAL CITY CORP AGREED TO BECOME AN EQUITY PARTNER IN ELECTRONIC PAYMENT SERVICES INC A HOLDING COMPANY FOR MONEY ACCESS SERVICE A PROCESSOR OF AUTOMATED TELLER MACHINE TRANSACTIONS EPS ALSO IS THE HOLDING COMPANY FOR BUYPASS CORP A THIRDPARTY PROCESSOR OF ELECTRONIC POINTOFSALE TRANSACTION PROCESSING SERVICES NATIONAL CITY WILL BECOME THE FIFTH REGIONAL BANK TO OWN AN EQUITY POSITION IN EPS WHICH WAS FORMED LAST YEAR BY CORESTATES FINANCIAL CORP BANC ONE CORP PNC BANK CORP AND SOCIETY CORP 9311010064 931101 ZENECA UNIT'S DRUG APPLICATIONS LONDON ZENECA PLC A BRITISH PHARMACEUTICALS COMPANY SAID ITS US UNIT SUBMITTED TWO NEW DRUG APPLICATIONS TO THE FOOD AND DRUG ADMINISTRATION IN WASHINGTON BOTH SUBMISSIONS ARE FOR MERREM AN INJECTIBLE CARBAPENEM ANTIBIOTIC FOR THE TREATMENT OF VARIOUS BACTERIAL INFECTIONS ONE SUBMISSION IS FOR AN INTRAVENOUS FORMULATION OF THE DRUG AND THE OTHER IS FOR AN INTRAMUSCULAR FORMULATION MERREM IS THE FIRST IN A NEW CLASS OF CARBAPENEM ANTIBIOTICS THAT DOES NOT REQUIRE COADMINISTRATION WITH AN ENZYME INHIBITOR TO PREVENT KIDNEY TOXICITY THE COMPANY SAID 9311010063 931101 BUSINESS BRIEF T ROWE PRICE ASSOCIATES INC THIRDQUARTER PROFIT ROSE 17 REVENUE ADVANCED 27 T ROWE PRICE ASSOCIATES INC BALTIMORE REPORTED A 17 RISE IN THIRDQUARTER NET INCOME ON A 27 REVENUE GAIN FOR THE MUTUALFUND MANAGEMENT COMPANY NET WAS 12 MILLION OR 78 CENTS A SHARE UP FROM 103 MILLION OR 68 CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO 788 MILLION FROM 622 MILLION GEORGE J COLLINS PRESIDENT SAID FEES EARNED ON RECORD ASSETS UNDER MANAGEMENT CONTINUED TO BE THE PRIMARY CONTRIBUTOR TO THE COMPANY'S STRONG REVENUE GROWTH THE INTERNATIONAL ARENA HAS BEEN PARTICULARLY GOOD FOR US HAVING ACCELERATED AS THE YEAR HAS PROGRESSED THE COMPANY CURRENTLY MANAGES ABOUT 499 BILLION 9311010062 931101 BUSINESS BRIEF AKORN INC COMPANY EXPECTS TO REPORT FISCAL 1STPERIOD NET TRIPLED AKORN INC EXPECTS TO REPORT THAT FISCAL FIRSTQUARTER NET INCOME ROUGHLY TRIPLED TO BETWEEN 250000 AND 300000 THE ABITA SPRINGS LA COMPANY WHICH MAKES AND SELLS OPHTHALMIC PRODUCTS EXPECTS TO REPORT SALES ROSE 14 TO BETWEEN 55 MILLION AND 56 MILLION IN THE 1992 FIRSTQUARTER AKORN HAD NET INCOME OF 90125 OR ONE CENT A SHARE ON REVENUE OF 49 MILLION AKORN PRESIDENT AND CHIEF EXECUTIVE OFFICER BARRY LEBLANC SAID THE COMPANY HAS GROWTH POTENTIAL BECAUSE 500 MILLION OF THE OPHTHALMIC DRUG MARKET WENT OFF PATENT AND GENERIC MAKERS LIKE AKORN CAN MAKE AND SELL THOSE PRODUCTS WITHOUT COSTLY RESEARCH EXPENSE MR LEBLANC SAYS AKORN CURRENTLY MAKES SEVEN OF THE 40 PRODUCTS IT SELLS WHICH ACCOUNT FOR 15 TO 20 OF TOTAL SALES AKORN IS EXPECTED TO MAKE AN ADDITIONAL EIGHT PRODUCTS BY YEAR'S END 9311010061 931101 SMITH BARNEY FORCES OUT GEORGE BALL BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BUMPY 31YEAR WALL STREET CAREER OF GEORGE L BALL MAY BE OVER MR BALL 54 YEARS OLD WAS OUSTED AS SENIOR EXECUTIVE VICE PRESIDENT OF SMITH BARNEY SHEARSON INC AFTER ONLY A YEAR ON THE JOB IT'S THE SECOND TIME IN LESS THAN THREE YEARS THAT MR BALL HAS BEEN FORCED TO LEAVE A SENIOR POST AT A BIG BROKERAGE FIRM IN 1991 HE WAS PRESSURED TO RESIGN AS CHAIRMAN AND CHIEF EXECUTIVE OF PRUDENTIALBACHE SECURITIES INC NOW KNOWN AS PRUDENTIAL SECURITIES THE FORCED DEPARTURE FROM SMITH BARNEY SHEARSON COMES AMID WIDENING FEDERAL AND STATE INVESTIGATIONS OF FORMER SENIOR PRUDENTIAL EXECUTIVES INCLUDING MR BALL BUT IT'S BY NO MEANS CERTAIN THAT MR BALL WILL BE CHARGED IN THE PRUBACHE CASES PEOPLE FAMILIAR WITH THE MATTERS SAID HE HASN'T BEEN ACCUSED OF ANY WRONGDOING AND MR BALL'S RECENT OUSTER WASN'T DIRECTLY TIED TO THE BURGEONING PRUBACHE INVESTIGATION SMITH BARNEY SHEARSON EXECUTIVES SAID THE FORCED DEPARTURE HAD BEEN IN THE WORKS SINCE JULY THE PRUDENTIAL PROBE WAS JUST THE FINAL NAIL IN THE COFFIN SAYS A SENIOR SMITH BARNEY SHEARSON EXECUTIVE MR BALL IS A CREATIVE GUY BUT HE WASN'T DOING MUCH HE ENDED UP WITH NO JOB IN AN INTERVIEW MR BALL CALLS HIS DEPARTURE ABSOLUTELY UNRELATED TO THE GROWING PROBES RATHER HE SAYS HE REALIZED HIS SERVICES WEREN'T NEEDED PARTICULARLY AFTER THIS SUMMER'S MERGER OF SHEARSON LEHMAN BROTHERS INC'S BROKERAGE OPERATIONS WITH SMITH BARNEY VERY SIMPLY WHEN THE MERGER TOOK PLACE IT WAS CLEAR TO ME THAT THERE WASN'T A JOB FOR GEORGE BALL MR BALL SAYS MR BALL HAS LINED UP A SENIOR POST AT AN UNIDENTIFIED COMPANY OUTSIDE THE SECURITIES INDUSTRY AND DON'T LOOK FOR MR BALL TO RESURFACE IN THE BROKERAGE BUSINESS ANY TIME SOON FOR QUITE AWHILE I'VE WANTED TO DO SOMETHING THAT TOOK ADVANTAGE OF THE SKILLS I'VE BUILT UP IN THE SECURITIES BUSINESS BUT DIDN'T JUST REPLICATE WHAT I HAD DONE BEFORE MR BALL SAYS MR BALL HAS HAD A ROCKY CAREER ON WALL STREET BUT HAS ALWAYS BEEN ABLE TO LAND ON HIS FEET HE WAS PRESIDENT OF EF HUTTON & CO AND OVERSAW ITS BROKERAGE OPERATIONS AMID A MASSIVE CHECKKITING SCHEME AT THE FIRM IN THE EARLY 1980S IN 1985 HUTTON PLEADED GUILTY TO 2000 FRAUD COUNTS IN THE MATTER MR BALL DENIED KNOWLEDGE OF THE SCHEME IN 1988 MR BALL AGREED WITHOUT ADMITTING OR DENYING GUILT TO A CENSURE BY THE NEW YORK STOCK EXCHANGE FOR FAILING TO ADEQUATELY SUPERVISE ACTIVITIES AT HUTTON WHILE AT PRUBACHE A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA MR BALL WAS CRITICIZED FOR ZEALOUSLY PAYING UPFRONT MONEY TO LURE BROKERS FROM OTHER FIRMS HE PRESIDED OVER PRUBACHE'S COSTLY ATTEMPT TO BECOME AN INVESTMENTBANKING POWERHOUSE AND HE OVERSAW THE AGGRESSIVE SELLING OF PARTNERSHIPS LAST MONTH PRUDENTIAL REACHED AN ACCORD WITH FEDERAL AND STATE REGULATORS IN WHICH IT AGREED TO PAY AT LEAST 371 MILLION TO SETTLE ALLEGATIONS THAT IT IMPROPERLY SOLD PARTNERSHIPS IN THE 1980S AT THE SAME TIME MR BALL HAS WON PRAISE FOR HIS BROKERAGE EXPERTISE AND TRADITIONALLY GOOD RELATIONSHIP WITH BROKERS A SHY MAN WITH AN ENGAGING SENSE OF HUMOR MR BALL IS WELLKNOWN FOR A QUIRKY MANAGEMENT STYLE THAT INCLUDED WRITING LONG RAMBLING MEMOS TO EMPLOYEES ABOUT PRUBACHE AND ITS PROSPECTS A YEAR AGO MR BALL WAS HIRED WITH MUCH FANFARE BY SMITH BARNEY TO HATCH STRATEGIES FOR IMPROVING THE FIRM'S BROKERAGE BUSINESS CATERING TO WELLHEELED INVESTORS A MEMBER OF THE FIRM'S EXECUTIVE COMMITTEE AND BOARD MR BALL RECEIVED AN ANNUAL SALARY OF 275000 AND A 200000 BONUS FOR THE FINAL TWO MONTHS IN 1992 SMITH BARNEY EXECUTIVES SAID BUT HIS HIGHPROFILE PRESENCE ANGERED SOME SMITH BARNEY EXECUTIVES WHO HAD OPPOSED HIS HIRING AND WHEN SHEARSON MERGED WITH SMITH BARNEY IN JULY MR BALL'S SUPPORT SHRIVELED FURTHER PEOPLE FAMILIAR WITH THE FIRM SAID HE BRIEFLY WORKED ON SOLICITING INVESTMENTBANKING CLIENTS FOR THE FIRM BUT THAT DIDN'T PAN OUT MR BALL NEVER WAS KNOWN AS A BANKER PUBLICLY SMITH BARNEY SHEARSON PLAYED DOWN MR BALL'S OUSTER IN A STATEMENT THE PRIMERICA CORP UNIT SAID SEVERAL MONTHS AGO MR BALL INFORMED US OF HIS INTENTION TO LEAVE SMITH BARNEY SHEARSON AND UNDERTAKE A NEW BUSINESS OPPORTUNITY SINCE JOINING US IN OCTOBER 1992 MR BALL HAS WORKED ON A NUMBER OF PROJECTS THOSE PROJECTS HAVE BEEN COMPLETED SUCCESSFULLY AND ACCORDINGLY MR BALL NOW FEELS FREE TO LEAVE THE FIRM FOR HIS NEW POST THE OUSTER COMES LESS THAN A MONTH AFTER MR BALL WAS BRIEFED BY SEC LAWYERS IN THE PRUBACHE CASE IN TESTIMONY LASTING A DAY AND A HALF MR BALL SOUGHT TO DISTANCE HIMSELF FROM J FREDERIC STORASKA PEOPLE FAMILIAR WITH THE MATTER SAY MR STORASKA WHO ONCE RANKED AS PRUBACHE'S NO 2 BROKER BY PRODUCING NEARLY 5 MILLION IN ANNUAL COMMISSIONS IS BEING INVESTIGATED BY FEDERAL PROSECUTORS LOOKING INTO WHETHER HE AND OTHERS MADE UNAUTHORIZED TRADES FOR CLIENTS AND RECEIVED ILLEGAL PAYMENTS IN PEDDLING PARTNERSHIPS THE PEOPLE SAY THE SEC AS IS ITS CUSTOM DECLINED TO COMMENT ON THE MATTER MR STORASKA WHO RAN A DEPARTMENT WITHIN PRU'S DALLAS OFFICE CATERING TO WELLHEELED INVESTORS LEFT THE FIRM LAST YEAR IN LAST MONTH'S SEC SETTLEMENT ORDER THE SEC ALLEGED THAT AN UNIDENTIFIED DALLAS DEPARTMENT HEAD WHO PEOPLE FAMILIAR WITH THE MATTER SAY IS MR STORASKA OFTEN TOLD PRUBACHE CLIENTS AND HIS SUPERIORS AMONG OTHERS THAT HE REPORTED DIRECTLY TO THE FIRM'S CHIEF EXECUTIVE OFFICER MR STORASKA HASN'T MET WITH SEC LAWYERS OR BEEN ASKED TO TESTIFY THE PEOPLE SAY THEY SAY MR STORASKA'S ONLY CONTACT WITH REGULATORS WAS A DISCUSSION WITH THE MANHATTAN US ATTORNEY'S OFFICE DENNIS BLOCK MR STORASKA'S ATTORNEY SAID ONLY A NUMBER OF FORMER PRUDENTIAL BROKERS HAVE BEEN ASKED WHETHER THEY CAN HELP SUPPLY EVIDENCE AGAINST FORMER PRUDENTIAL SENIOR MANAGERS FEDERAL PROSECUTORS ALSO ARE LOOKING INTO WHETHER MR BALL PROTECTED MR STORASKA AFTER A PRUBACHE COMPLIANCE AUDIT URGED THAT MR STORASKA'S OPERATION BE DISBANDED PEOPLE FAMILIAR WITH THE MATTER SAID I KNEW STORASKA BECAUSE HE WAS A BIG PRODUCER MR BALL SAYS IN THE INTERVIEW I NEVER PROTECTED HIM IN ANY WAY SHAPE FASHION OR FORM I SERIOUSLY DIDN'T SEE THE GUY MORE THAN THREE TIMES A YEAR MR BALL TOLD SEC LAWYERS THAT HE WASN'T AWARE OF MR STORASKA'S ACTIVITIES AND THAT HIS CONTACT WITH THE BROKER WAS MINIMAL THE PEOPLE SAY SINCE HIS TESTIMONY MR BALL HASN'T BEEN ASKED BACK BY THE SEC THE SEC'S ENFORCEMENT STAFF FOR ITS PART HASN'T INDICATED THAT IT PLANS TO TAKE ANY ACTION AGAINST MR BALL AND PEOPLE FAMILIAR WITH THE MATTER SAY HIS LAWYERS WERE HEARTENED THAT THE PROCEEDINGS WERE CORDIAL GEORGE BALL HAD NO KNOWLEDGE OR INVOLVEMENT IN ANY WRONGDOING IF IN FACT THERE WAS ANY SAYS SAMUEL SKIP KEESAL MR BALL'S LAWYER WE HAVE NO REASON TO EXPECT ANY CHARGES TO BE MADE AGAINST MR BALL 9311010060 931101 POLITICS & POLICY CLINTON AIDES MOVE TO CONTROL DAMAGE FROM ESTIMATE OF COSTS IN HEALTH PLAN BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HAVING TOUCHED OFF A POLITICAL FIRESTORM WHITE HOUSE OFFICIALS SCRAMBLED TO EXPLAIN WHY THEIR OWN ESTIMATES SHOW 40 OF THE NATION'S INSURED POPULATION WOULD INITIALLY PAY MORE UNDER PRESIDENT CLINTON'S HEALTHCARE PLAN THAN THEY DO NOW IN AN APPEARANCE YESTERDAY ON NBC NEWS'S MEET THE PRESS SENIOR WHITE HOUSE ADVISER IRA MAGAZINER CONTENDED THAT FOCUSING ON THE 40 FIGURE ALONE IS MISLEADING MORE THAN HALF OF THOSE THAT MAKE UP THE 40 HE ASSERTED ARE GOING TO PAY A BIT MORE IN PREMIUMS BUT THEY'RE GOING TO GET BETTER BENEFITS THESE ARE PEOPLE THAT MIGHT HAVE TODAY HEALTH INSURANCE PLANS THAT HAVE 2000 AND 3000 DEDUCTIBLES MR MAGAZINER SAID UNDER WHAT WE PROPOSE THEY'LL PAY LESS OUT OF POCKET BUT SLIGHTLY HIGHER IN THEIR PREMIUMS MOREOVER THE INCREASE IN PREMIUMS FOR THIS GROUP WOULD BE A SLIGHT 10 TO 15 A MONTH ON AVERAGE ACCORDING TO THE WHITE HOUSE IT ACKNOWLEDGES HOWEVER THAT SOME PEOPLE COULD SEE INCREASES OF AS MUCH AS 1000 A YEAR THE 40 FIGURE SURFACED LAST WEEK AS HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA TESTIFIED BEFORE THE SENATE FINANCE COMMITTEE DESPITE THE SPARKS GENERATED BY THE NUMBER IT IS ACTUALLY RIGHT IN LINE WITH ESTIMATES SUPPLIED IN CONGRESSIONAL TESTIMONY IN SEPTEMBER BY HILLARY RODHAM CLINTON NONETHELESS THE 40 NUMBER IS SUDDENLY BEING TARGETED BY OPPONENTS OF THE CLINTON PLAN EVEN DEMOCRATIC SEN DANIEL MOYNIHAN CHAIRMAN OF THE FINANCE COMMITTEE SAID DURING LAST WEEK'S HEARING THAT THE ESTIMATE WILL MAKE THE PRESIDENT'S PROPOSAL A TOUGH SELL I DON'T THINK ANYBODY THOUGHT BASED ON WHAT THE PRESIDENT SAID THAT THE ADMINISTRATION WOULD OPENLY ADMIT THAT A MINIMUM OF 40 WOULD PAY MORE REP NEWT GINGRICH OF GEORGIA THE HOUSE REPUBLICAN WHIP SAID ON CBS NEWS'S FACE THE NATION YESTERDAY REMEMBER THIS IS THE ADMINISTRATION'S NUMBER MR MAGAZINER HOWEVER PLAYED DOWN ITS SIGNIFICANCE HE SAID ABOUT 15 OF THOSE CURRENTLY INSURED WOULD HAVE TO PAY MORE FOR THE SAME LEVEL OF BENEFITS THEY RECEIVE NOW BUT ONLY ON AVERAGE ABOUT 6 A MONTH MORE THIS GROUP CONSISTS MAINLY OF YOUNG AND HEALTHY PEOPLE WHO UNDER THE CLINTON PLAN WOULD FOR THE FIRST TIME BE POOLED IN THE SAME COMMUNITY RATED INSURANCE SYSTEM AS THOSE WHO ARE OLDER AND SICKER WHITE HOUSE BUDGET DIRECTOR LEON PANETTA MEANWHILE MAINTAINED THAT EVEN THOSE WHO DO PAY MORE WOULD BE GETTING SOMETHING IN RETURN UNDER THE CLINTON PLAN THEY'RE GOING TO BE BUYING THE FACT THAT NOBODY CAN TAKE HEALTHCARE SECURITY AWAY FROM THEM HE SAID ON THE CBS PROGRAM UNDER THE PRESIDENT'S PROPOSAL WHICH WAS FORMALLY PRESENTED TO CONGRESS LAST WEEK ALL AMERICANS WOULD BE GUARANTEED A COMPREHENSIVE PACKAGE OF HEALTH BENEFITS REGARDLESS OF WHETHER THEY GET SICK CHANGE JOBS OR BECOME UNEMPLOYED 9311010059 931101 BUSINESS BRIEF RAYTHEON CO TOTAL WORK FORCE REDUCTION TO INCLUDE 1150 MORE JOBS RAYTHEON CO SAID IT WILL ELIMINATE 1150 MORE JOBS PART OF A CONTINUING COSTCUTTING EFFORT THAT HAS ENABLED THE LEXINGTON MASS COMPANY TO BOOST PROFIT DESPITE FLAT REVENUE GROWTH IN RECENT YEARS IT'S ABSOLUTELY NECESSARY FOR US TO TAKE THIS STEP NOW SO AS TO REMAIN COMPETITIVE A SPOKESMAN SAID AMONG THE SITES AFFECTED ARE RAYTHEON'S ANDOVER MASS PLANT WHICH MAKES THE PATRIOT AIRDEFENSE MISSILE ANDOVER WILL LOSE NEARLY 400 JOBS 9311010058 931101 LAW NEW YORK CITY APPROVES BENEFITS TO UNWED PARTNERS NEW YORK NEW YORK CITY AGREED TO PROVIDE HEALTHCARE BENEFITS TO UNMARRIED PARTNERS OF ALL CITY EMPLOYEES AND RETIREES IN SETTLEMENT OF A LAWSUIT BROUGHT FIVE YEARS AGO BY THE LESBIAN AND GAY TEACHERS ASSOCIATION THE SWEEPING SETTLEMENT WHICH TAKES EFFECT JAN 1 WILL MAKE NEW YORK THE LARGEST PROVIDER OF SOCALLED DOMESTICPARTNER BENEFITS ALTHOUGH THE BENEFITS APPLY TO HETEROSEXUAL AS WELL AS HOMOSEXUAL COUPLES THE SETTLEMENT IS CONSIDERED A VICTORY FOR GAYRIGHTS GROUPS WHICH HAVE LONG CAMPAIGNED FOR SUCH PROGRAMS NEW YORK CITY MAYOR DAVID DINKINS'S ADMINISTRATION AGREED TO THE SETTLEMENT SATURDAY THREE DAYS BEFORE VOTERS DECIDE ON HIS REELECTION BID THE CITY AND ITS UNIONS COMMITTED 30 MILLION FOR THE FIRST 30 MONTHS THE BENEFITS ARE IN EFFECT BUT THE CITY AND GAY GROUPS NEGOTIATING THE SETTLEMENT EXPECT THE ACTUAL COST WILL BE FAR LESS THE BENEFITS WILL BE THE SAME AS THOSE OFFERED TO MARRIED WORKERS' SPOUSES THE COST WON'T BE UNDULY BURDENSOME SAID EVAN WOLFSON AN ATTORNEY FOR LAMBDA LEGAL DEFENSE AND EDUCATION FUND WHICH REPRESENTED THE GAY TEACHERS' ORGANIZATION IN THE LAWSUIT AT LEAST A DOZEN OTHER CITIES PROVIDE DOMESTICPARTNER HEALTHCARE BENEFITS 9311010057 931101 MARKETING & MEDIA ADVERTISING TIME WARNER AND PARAMOUNT VIE TO FILL DEMAND FOR FIFTH NETWORK BY KEVIN GOLDMAN MADISON AVENUE IS GREETING WITH ENTHUSIASM NEWS OF A POSSIBLE FIFTH BROADCAST TELEVISION NETWORK TROUBLE IS THERE ARE TWO MAJOR MEDIA GIANTS TIME WARNER AND PARAMOUNT COMMUNICATIONS VYING FOR THE PART WHILE THERE IS A VORACIOUS APPETITE FOR ANOTHER SETTING AT THE NETWORK TABLE MOST ADVERTISING EXECUTIVES STRONGLY BELIEVE THERE DEFINITELY ISN'T ROOM FOR A SIXTH THE FIFTH NETWORK IS GOING TO BE ANOTHER CHOICE FOR ADVERTISERS AND THEREFORE STIR PRICING COMPETITION SAYS JEROME DOMINUS SENIOR VICE PRESIDENT AT WPP GROUP'S J WALTER THOMPSON SO THE RACE IS ON BETWEEN TIME WARNER'S WARNER BROS UNIT AND PARAMOUNT COMMUNICATIONS TO SIGN UP AS MANY OF THE APPROXIMATELY 280 INDEPENDENT STATIONS THAT HAVEN'T BEEN SNATCHED UP BY NEWS CORP'S FOX NETWORK THE ABILITY TO SNARE THESE STATIONS IS CRITICAL TO THE VIABILITY OF EITHER FLEDGING NETWORK WARNER BROS IS EXPECTED TO ANNOUNCE TOMORROW DETAILS ABOUT ITS NETWORK CALLED WB AND HEADED BY JAMIE KELLNER WHO HELPED CREATE THE FOX NETWORK SIX YEARS AGO MR KELLNER MET WITH ADVERTISING EXECUTIVES OVER THE PAST SEVERAL WEEKS DETAILING A FIVEYEAR ROLLOUT PLAN FOR WB INCLUDING SHOWS IN PRIME TIME DAYTIME AND THE LATE AFTERNOON WB IS EXPECTED TO FORM ITS NETWORK WITH TRIBUNE TELEVISION A UNIT OF TRIBUNE CO OF CHICAGO WHICH OWNS SEVEN STATIONS COVERING 22 OF THE COUNTRY BUT WARNER PLANS TO START ITS NETWORK BEFORE PARAMOUNT WHICH MAY GIVE IT AN ADVANTAGE IT WILL LAUNCH ONE EVENING OF PROGRAMMING NEXT AUGUST AND THEN EXPAND TO A SECOND NIGHT IN JANUARY 1995 PARAMOUNT MEANWHILE DOESN'T PLAN TO GET ITS NETWORK OFF THE GROUND AT ALL UNTIL JANUARY 1995 A WARNER BROS OFFICIAL WHO DIDN'T WANT TO BE IDENTIFIED SAYS OTHER STATIONOWNER GROUPS THAT ARE PLANNING TO BE WB AFFILIATES ARE EXPECTED TO ATTEND A SCHEDULED LATEMORNING NEWS CONFERENCE AT WARNER BROS STUDIOS IN BURBANK CALIF TOMORROW MR KELLNER DECLINED COMMENT ONE STATION GROUP RENAISSANCE COMMUNICATIONS WILL AFFILIATE ITS MIAMI UHF STATION WDZL WITH WB IT OWNS A TOTAL OF SIX STATIONS BUT FIVE ARE ALREADY FOX AFFILIATES MICHAEL FINKELSTEIN CHAIRMAN AND CHIEF EXECUTIVE OF RENAISSANCE SAYS HE HAS FULL CONFIDENCE IN MR KELLNER'S ABILITY TO START ANOTHER NETWORK THE NEWS COMES LESS THAN A WEEK AFTER PARAMOUNT IN PARTNERSHIP WITH STATION OWNER CHRISCRAFT INDUSTRIES ANNOUNCED ITS PLANS TO LAUNCH A JOINTLY OWNED FIFTH NETWORK IN CONTRAST WB WILL OWN ITS NETWORK WITH THE POSSIBILITY OF TRIBUNE PURCHASING A STAKE AT A LATER DATE MR KELLNER ISN'T A WB EMPLOYEE RATHER HE OWNS AN UNSPECIFIED STAKE IN WB PARAMOUNT'S OPERATION TO BE CALLED THE PARAMOUNT NETWORK WITH FOUR HOURS OF PROGRAMMING OVER TWO NIGHTS INITIALLY WILL REACH ABOUT 27 OF US HOMES WITH TELEVISION SETS BUT FOR A NETWORK TO BE SUCCESSFUL IT MUST REACH ABOUT 70 OF THE COUNTRY IN HIS INDIVIDUAL PRESENTATIONS ALONG MADISON AVENUE MR KELLNER TOLD ADVERTISING AGENCY EXECUTIVES THAT WB WOULD REACH 75 OF THE COUNTRY THROUGH BROADCAST STATIONS AND ADDITIONAL HOMES THROUGH CABLE CHANNELS IT IS LITTLE WONDER THAT BOTH WARNER BROS AND PARAMOUNT WANT TO START A NETWORK THE FOX NETWORK BEGUN IN 1986 HAD AD REVENUE OF 600 MILLION IN ITS LATEST FISCAL YEAR ENDED JUNE 30 IN COMPARISON ESTIMATES SAY CBS WILL HAVE TV AD REVENUE THIS YEAR OF 265 BILLION BUT TIME WARNER AND PARAMOUNT ARE TRYING TO SIGN STATIONS IN VASTLY DIFFERENT WAYS WB FOR INSTANCE IS INSISTING THAT STATIONS MAKE PAYMENTS TO BE WB AFFILIATES PARAMOUNT ISN'T TRADITIONALLY BROADCAST NETWORKS PAY EACH AFFILIATE A FEE TO RUN NETWORK SHOWS A PRACTICE KNOWN AS COMPENSATION IN ESSENCE WB IS ASKING FOR REVERSE COMPENSATION THE WARNER BROS OFFICIAL SAYS ASKING STATIONS FOR MONEY IS THE ONLY WAY TO BUILD A NETWORK AND HAVE ENOUGH RESOURCES TO INVEST IN BUYING SCRIPTS PILOTS ORIGINAL PROGRAMMING AND BACKUP SERIES THE ASSUMPTION IS THAT A STATION'S VALUE WILL INCREASE WITH A NETWORK AFFILIATION AND WB IS ASKING FOR PAYMENT BASED ON THE INCREMENTAL PROFIT THAT A STATION WOULD BE EXPECTED TO RECEIVE BY BECOMING A WB AFFILIATE FOR EXAMPLE IF A STATION STARTS OUT WITH A TWO RATING AND GOES UP TO A SIX RATING WITH WB WARNER WILL ASK FOR A PERCENTAGE SAY 25 OF THE INCREASE IN PROFIT PEOPLE FAMILIAR WITH THE PLAN SAY THOSE RATINGS DESIGNATE THE PERCENTAGE OF TV SETS TUNED INTO A PARTICULAR SHOW PARAMOUNT AND CHRISCRAFT ARE ATTEMPTING TO PERSUADE OTHER STATION GROUPS THAT LINKING UP WITH THEIR NETWORK IS A BETTER DEAL BECAUSE CHRISCRAFT AND PARAMOUNT OWN STATIONS THAT WILL BE AFFILIATES OF THE NETWORK THUS THEY STAND TO MAKE PROFITS ON BOTH THE NETWORK AND THE STATIONS AND WON'T NEED TO CHARGE OTHER AFFILIATES A FEE THE FUNDAMENTAL DIFFERENCE IS THAT WE ARE A NETWORK FORMED BY BROADCASTERS AND WE'RE GOING TO RUN IT FROM THE POINT OF VIEW OF THE BROADCASTERS WHILE WARNER IS A PRODUCER EXPLAINS ONE EXECUTIVE INVOLVED IN THE PARAMOUNT NETWORK WARNER WILL LIVE AND DIE OFF THE PROFIT OF THE NETWORK SO THEY HAVE TO CHARGE A FEE TO THEIR AFFILIATES PARAMOUNT WAS SPECIFIC ABOUT ONE 60MINUTE SHOW ON ITS NETWORK STAR TREK VOYAGER WHICH WILL BE THE FOURTH SERIES IN THE STAR TREK SAGA WB IS KEEPING MUM ALTHOUGH IT IS EXPECTED TO HINT AT SOME POTENTIAL SERIES TOMORROW BUT MR KELLNER WAS QUITE SPECIFIC WITH ADVERTISING EXECUTIVES ABOUT WHAT THE NETWORK WOULD BE AND MADISON AVENUE SEEMED TO LIKE WHAT IT HEARD ACCORDING TO AD AGENCY EXECUTIVES MR KELLNER SAID THAT IF WB HAD A ROLE MODEL IT WOULDN'T BE FOX BUT RATHER ABC A UNIT OF CAPITAL CITIES/ABC THE TEEN AUDIENCE HAS BEEN TAKEN PRETTY MUCH BY FOX ANYWAY SAYS JOEL M SEGAL AN EXECUTIVE VICE PRESIDENT AT INTERPUBLIC GROUP'S MCCANNERICKSON THE ABC AUDIENCE IS URBAN 18 TO 34 YEARS OLD AFFLUENT AND THAT'S THE SMART WAY FOR WARNER TO GO MR SEGAL EXPECTS WB PROGRAMMING TO FEATURE SITUATION COMEDIES AND YOUTHFUL DRAMAS LIKE ABC'S SASSY AND SEXY THE ADVENTURES OF LOIS AND CLARK WB WILL FEATURE 11 MINUTES OF COMMERCIALS EACH HOUR WITH EIGHT MINUTES KEPT BY WARNER TO SELL AND THREE MINUTES FOR THE LOCAL STATION A COMMON PRACTICE AMONG THE FOUR MAJOR BROADCAST NETWORKS PARAMOUNT'S NETWORK WILL HAVE THE SAME COMMERCIAL SPLIT SINCE IT IS UNLIKELY THAT ADVERTISERS ARE GOING TO RADICALLY INCREASE THEIR SPENDING TO BUY COMMERCIAL TIME ON TELEVISION IT IS ASSUMED THAT THE AD DOLLARS WILL BE SIPHONED OFF FROM AN EXISTING ARENA ONE ASSUMPTION IS THAT SYNDICATED SHOWS WILL BE LIKELY TARGETS MR KELLNER TOLD AD AGENCIES THAT WB WILL FEATURE BUGS BUNNY AS A NETWORK ICON WHICH MADISON AVENUE THINKS IS A SMART STRATEGY HE MIGHT EVEN BE THE NETWORK'S PRESIDENT IN A MARKETING MOVE THAT IS SIMILAR TO ACTOR DICK VAN DYKE BEING NAMED CHAIRMAN OF THE NICK AT NITE CABLE CHANNEL WITH ALL THE CHOICES OUT THERE YOU HAVE TO STAMP AN IDENTITY FOR YOURSELF IF YOU'RE A NEW NETWORK STARTING OUT SAYS BETSY FRANK A SENIOR VICE PRESIDENT AT SAATCHI & SAATCHI ADVERTISING BUGS BUNNY IS A LOGICAL SYMBOL TO WANT TO EMBRACE ALTHOUGH IT IS BEING CAGEY ABOUT ITS SPECIFIC SERIES WB IS PLANNING TO PORE OVER ABOUT 70 SCRIPTS AND PRODUCE 15 PILOTS SAYS MR DOMINUS JAMIE TOLD US THAT THERE WILL BE NO CHEAP PROGRAMMING THAT THE SERIES WILL BE BUDGETED LIKE A MAJOR NETWORK AND THERE WILL BE NO REALITYBASED OR NEWS SHOWS IN OTHER WORDS THE SHOWS WILL BE ADVERTISERFRIENDLY AND NOT RELY ON RAUNCHY HUMOR UNLIKE THE FOX SERIES MARRIED WITH CHILDREN THAT TYPE OF PROGRAM FARE AND THE CONVENTIONAL WISDOM THAT A FOURTH NETWORK WOULD BE AN IMPOSSIBILITY INITIALLY KEPT SOME RESPECTED PRODUCERS AWAY FROM FOX SAYS ONE FORMER FOX EXECUTIVE CLEARLY MR KELLNER DOESN'T WANT TO REPEAT THAT KIND OF NETWORK BIRTH AND THERE ARE FEW DOUBTERS THESE DAYS ABOUT A NETWORK STARTUP WB WON'T BE RELYING EXCLUSIVELY ON ITS OWN WARNER STUDIO FOR ITS SERIES MR KELLNER TOLD AD AGENCIES INSTEAD WB WILL BE INTERESTED IN ACQUIRING SERIES FROM PRODUCERS AND THE MAJOR HOLLYWOOD STUDIOS INCLUDING PARAMOUNT MEDIA ACCOUNT FORD MOTOR'S EUROPEAN OPERATIONS MOVED THE MEDIABUYING PORTION OF ITS ADVERTISING ACCOUNT IN GERMANY FROM YOUNG & RUBICAM TO THE LONDON OFFICE OF WPP GROUP'S OGILVY & MATHER CONSOLIDATING ALL OF ITS EUROPEAN MEDIA AT THE AGENCY ACCOUNT POWERSOFT A BURLINGTON MASS SOFTWARE COMPANY TAPPED MULLEN ADVERTISING FOR ITS 65 MILLION PRINTADVERTISING ACCOUNT PREVIOUSLY HANDLED BY DUVAL WOGLOM BRUECKNER & PARTNERS OF BOSTON MULLEN BASED IN WENHAM MASS BESTED ANDERSON & LEMBKE NEW YORK WHO'S NEWS WPP GROUP'S COLE & WEBER SEATTLE NAMED BOB BRIHN TO THE POST OF SENIOR VICE PRESIDENT AND CREATIVE DIRECTOR MR BRIHN 36 YEARS OLD SUCCEEDS SCOTT MARSHALL WHO HAD BEEN PRESIDENT AND CREATIVE DIRECTOR OF THE AGENCY UNTIL AUGUST WHEN HE LEFT THE SHOP ALONG WITH CHAIRMAN MARK MCNEELY MR BRIHN REPORTS TO AUSTIN MCGHIE THE AGENCY'S NEW PRESIDENT AND CHIEF EXECUTIVE 9311010056 931101 MARKETING & MEDIA SMOKELESSTOBACCO ADS AT CAR RACES ARE TARGETED WASHINGTON CAR RACING MAY BE DANGEROUS BUT SO IS A PRODUCT ADVERTISED AT RACING EVENTS ACCORDING TO THE FEDERAL TRADE COMMISSION THE COMMISSION HAS PROPOSED THAT CARS UNIFORMS AND RACINGRELATED PROMOTIONS WITH ADVERTISEMENTS FOR SMOKELESSTOBACCO PRODUCTS CARRY HEALTH WARNINGS MOST OTHER FORMS OF SMOKELESSTOBACCO ADVERTISING ALREADY CARRY ONE OF THREE ROTATING WARNINGS TO COMPLY WITH THE COMPREHENSIVE SMOKELESS TOBACCO HEALTH EDUCATION ACT OF 1986 THE FTC PROPOSAL WOULD AMEND CURRENT REGULATIONS TO CLARIFY THAT SPONSORED RACING CARS AND OTHER RACERELATED OBJECTS ARE ADVERTISING AND NEED TO INCLUDE WARNING LABELS THE AGENCY ALSO WANTS TO SPECIFY HOW THE THREE WARNING LABELS IN USE SHOULD BE ROTATED A FOURMONTH CYCLE HAS BEEN SUGGESTED THERE WILL BE PUBLIC COMMENT ON THE PROPOSAL UNTIL DEC 3 THE AGENCY IS SPECIFICALLY INTERESTED IN ADVICE ABOUT THE SIZE AND PLACEMENT OF WARNING LABELS METHODS OF ROTATING DIFFERENT LABELS AND THE LIKELY EFFECT OF THE PROPOSED REGULATIONS ON SMALL BUSINESSES 9311010055 931101 ECONOMY CLINTON URGES FIRMS TO KEEP JOBS IN US COMPANIES BALK AT REQUEST NOT TO MOVE TO MEXICO IF NAFTA WINS APPROVAL BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS URGING US COMPANIES TO PLEDGE NOT TO MOVE JOBS TO MEXICO IF THE NORTH AMERICAN FREE TRADE AGREEMENT PASSES BUT CORPORATE AMERICA IS BALKING AT THE REQUEST ADMINISTRATION OFFICIALS SAID THEY ARE SEEKING SUCH COMMITMENTS TO DISPEL WIDESPREAD WORRIES THAT TRADE LIBERALIZATION IN MEXICO WILL OPEN THE FLOODGATES FOR US COMPANIES ATTRACTED TO THE LOW WAGES THERE ALTHOUGH OFFICIALS PRIVATELY EXPRESS DOUBTS ABOUT THE SUCCESS OF THIS EFFORT SUCH CORPORATE ASSURANCES WOULD BE PARTICULARLY TIMELY AS THE HIGHLY CHARGED NAFTA DEBATE WINDS DOWN BEFORE THE HOUSE'S EXPECTED VOTE ON THE PACT NOV 17 WILLIAM DALEY WHO IS COORDINATING THE WHITE HOUSE CAMPAIGN AS NAFTA CZAR SAID ADMINISTRATION OFFICIALS HAVE RAISED THE ISSUE WITH A NUMBER OF CORPORATIONS AND TRADE GROUPS IN MEETINGS BRIEFINGS AND PHONE CALLS THOSE CONTACTS BEGAN A COUPLE OF MONTHS AGO OFFICIALS SAID AND THE ADMINISTRATION HAS REVISITED SOME OF THESE COMPANIES RECENTLY THERE HAS BEEN SOME INTEREST BUT NO COMMITMENTS MR DALEY SAID IN AN INTERVIEW US OFFICIALS ARE SECRETIVE ABOUT WHICH COMPANIES THEY HAVE HAD THE DISCUSSIONS WITH BUT ACKNOWLEDGE THE QUESTION HAS BEEN BROACHED WITH THE BIG THREE AUTO MAKERS CHRYSLER CORP GENERAL MOTORS CORP AND FORD MOTOR CO WHICH NAFTA OPPONENTS HAVE TARGETED AS PRIME CANDIDATES TO RELOCATE MANUFACTURING JOBS TO MEXICO WHILE MAKING CERTAIN ASSURANCES THAT NAFTA WON'T COST JOBS NONE OF THEM HAVE GONE AS FAR AS ADMINISTRATION OFFICIALS WOULD LIKE COMPANIES HAVE DIFFERENT REASONS AS TO WHY THEY WOULDN'T CONSIDER SUCH PLEDGES SAID MR DALEY PRIMARILY IT'S THAT BUSINESSES DON'T LIKE TO MAKE BLANKET COMMENTS IN A POLITICAL REALM COMPANIES THAT DON'T HAVE ANY INTEREST IN MOVING ANYWHERE STILL DON'T WANT TO GET IN THE MIDDLE OF POLITICAL DEBATES THE ADMINISTRATION IS SUGGESTING US COMPANIES ISSUE COMMITMENTS THAT THEY WOULD RELOCATE OPERATIONS IN MEXICO BACK TO THE US OR THAT THEY WOULD BOOST US OPERATIONS IN RESPONSE TO INCREASED EXPORTS TO MEXICO THEY'VE SECURED SOME STATEMENTS SOME COMPANIES SUCH AS ACE HARDWARE CORP SPRINGS INDUSTRIES INC AND TYCO LABORATORIES INC HAVE SAID NAFTA WILL PROMPT THE CREATION OF MORE JOBS AT THEIR COMPANIES CHRYSLER AND QUAKER OATS CO HAVE SAID NAFTA WOULDN'T COST JOBS AT THEIR US OPERATIONS BUT THE ASSURANCES AREN'T AS PLENTIFUL AND IRONCLAD AS MANY US OFFICIALS WOULD PREFER AT THE REQUEST OF CERTAIN LAWMAKERS US COMPANIES HAVE EVEN BEEN ASKED IF THEY WOULD SIGN A VERSION OF THE SULLIVAN PRINCIPLES GUIDELINES LAID OUT YEARS AGO FOR US COMPANIES DOING BUSINESS IN SOUTH AFRICA THE GUIDELINES DEVISED IN RESPONSE TO BOYCOTTS AGAINST COMPANIES THAT DID BUSINESS IN SOUTH AFRICA REQUIRED NONDISCRIMINATORY BUSINESS PRACTICES BUT COMPANIES HAVE BALKED AT SIGNING A NEW AGREEMENT SAYING THAT THE SULLIVAN PRINCIPLES STARTED AS VOLUNTARY AGREEMENTS AND BECAME MANDATORY AND THEY FEAR THE SAME WOULD HAPPEN WITH ANY NAFTARELATED GUIDELINES HARRY FREEMAN A FORMER AMERICAN EXPRESS CO EXECUTIVE AND PRONAFTA TRADE CONSULTANT WORKING WITH US CORPORATIONS' LOBBYING EFFORT SAID THE IDEA OF MAKING PLEDGES HAS FALLEN FLAT AT NAFTA STRATEGY SESSIONS HE'S PARTICIPATED IN BECAUSE IT'S FOOLISH FROM A CORPORATE PERSPECTIVE IT'S FULL OF HAZARDS TO MAKE A POLITICALLY MOTIVATED ANNOUNCEMENT ON A BUSINESS MATTER WHICH HASN'T YET BEEN DECIDED HE SAID IT GETS YOU IN TROUBLE WITH YOUR EMPLOYEES AND YOUR SHAREHOLDERS YOU'RE ASKING FOR TROUBLE JIM JONTZ WHO HEADS THE ANTINAFTA LOBBYING GROUP CITIZENS TRADE CAMPAIGN SAID I DON'T THINK THE PUBLIC WOULD BELIEVE IT EVEN IF THE COMPANIES DID SWEAR UP AND DOWN THAT THEY WOULDN'T LEAVE THE US MR JONTZ A FORMER INDIANA CONGRESSMAN ADDED THE FACT THAT THEY AREN'T WILLING TO EVEN PUBLICLY SAY THAT THEY AREN'T GOING TO MOVE PLANTS TO MEXICO IS EVEN MORE FUEL ON THE FIRE OVERALL CORPORATE AMERICA HASN'T GOTTEN RAVE REVIEWS FOR ITS PART IN PUSHING FOR CONGRESSIONAL SUPPORT FOR NAFTA WHICH HAS TO BE CLEARED BY BOTH THE HOUSE AND THE SENATE THE HOUSE VOTE IS CONSIDERED A TOSSUP AND MANY LAWMAKERS ARE PULLED BY LABOR'S ARGUMENT THAT NAFTA WILL BE A JOBLOSER IN A SPEECH FRIDAY AT THE JOHN F KENNEDY LIBRARY IN BOSTON MR CLINTON REPEATED A REFRAIN FOR COMPANIES TO SUPPORT A BROAD PROGRAM TO RETRAIN WORKERS WHO LOSE THEIR JOBS AS A RESULT OF NAFTA HE ARGUED THAT COMPANIES HAD NO RIGHT TO ASK THE AMERICAN PEOPLE ANY OF THEM EVEN ONE OF THEM TO SACRIFICE UNLESS WE ARE GOING TO MAKE A COMMON INVESTMENT IN A SATELLITE TOWN MEETING TODAY SET UP BY THE US CHAMBER OF COMMERCE MR CLINTON IS READYING TO ARGUE THAT OPENING THE MEXICAN MARKET IS A CRUCIAL PART OF IMPROVING US COMPETITIVENESS IN THE GLOBAL MARKETPLACE HIS KEY POINT THAT JAPAN AND EUROPE WILL CAPTURE THE MEXICAN MARKET IF THE US DOESN'T 9311010054 931101 WORLD MARKETS TOKYO RAILOFFER DEBACLE FUELS BLAMEFLINGING AND HANDWRINGING ABOUT NEXT PRIVATIZATION BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO WHO SHOT JR EAST IN THE AFTERMATH OF THE FIRST WILD DAYS OF PUBLIC TRADING IN EAST JAPAN RAILWAY PEOPLE ARE TRYING TO FIGURE OUT WHY THE JR EAST PRIVATIZATION WENT SO FAR OFF THE TRACK HOW DID THE TOKYO STOCK MARKET GET AN INITIAL OFFERING THAT KNOCKED 800 POINTS OFF THE NIKKEI AVERAGE AND VERY LIKELY ALIENATED THE SAME SMALL INVESTORS JR EAST WAS SUPPOSED TO BRING BACK TO THE MARKET JR EAST THE FIRST GOVERNMENT ENTITY IN JAPAN TO GO PUBLIC SINCE 1986 OPENED LAST TUESDAY AT 380000 YEN 351044 A SHARE AND WAS IMMEDIATELY OVERWHELMED WITH BIDS THE COMPANY HAD BEEN TOUTED AS A CAN'T LOSE STOCK BY MOST BROKERS PEOPLE BELIEVED THE GOVERNMENT WAS DETERMINED TO HAVE A SUCCESSFUL LAUNCH TO REVIVE THE LISTLESS TOKYO MARKET THE RAIL STOCK FINISHED ITS FIRST DAY OF TRADING UP 58 AT 600000 YEN THE NEXT DAY JR EAST EXPANDED THE SHARES AVAILABLE IN THE MARKET BY 29 THAT SUPPLY DILUTION ALONG WITH THE FIRST DAY'S GAINS CREATED A STAMPEDE TO SELL JR EAST SHARES ON WEDNESDAY FORCING THE TOKYO EXCHANGE TO HALT TRADING IN THE STOCK FOR THE DAY JR EAST FELL BOTH THURSDAY AND FRIDAY CLOSING THE WEEK AT 520000 YEN AND WITH IT CAME DOWN THE ENTIRE MARKET THE DISASTER PROVIDED INSTITUTIONAL AND CORPORATE INVESTORS OPPORTUNITIES TO BOTTOMFISH FRIDAY AND THEIR BUYING SPARKED A TECHNICAL REBOUND THE NIKKEI 225STOCK INDEX WHICH PLUNGED 35933 POINTS THURSDAY CLIMBED 22352 OR 12 TO 1970297 IN TRADING MONDAY IN TOKYO THE NIKKEI FELL 14541 POINTS TO CLOSE THE MORNING SESSION AT 1955756 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 280 MILLION SHARES UP FROM 23551 MILLION SHARES A DAY EARLIER ADVANCING ISSUES OUTNUMBERED RETREATING ISSUES 709266 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH LOST 2956 POINTS THURSDAY ROSE 2820 OR 18 TO 163059 MEANWHILE THE BUNGLED JR EAST PRIVATIZATION PROMPTED PLENTY OF FINGERPOINTING THE LEAD MANAGER NOMURA SECURITIES CO MUST HAVE HAD A FRESHMAN EMPLOYEE HANDLING THE RELEASE SAID AN EXECUTIVE AT ANOTHER BIG JAPANESE BROKERAGE FIRM IT WASN'T US SAID A NOMURA SPOKESMAN WHO BLAMED OVERZEALOUS SMALLER BROKERS FOR OVERSELLING THE ISSUE JUST LIKE NIPPON TELEGRAPH & TELEPHONE MISMANAGEMENT OF THE NTT ISSUE THE GOVERNMENT'S PREVIOUS PRIVATIZATION ALSO WAS BLAMED FOR TRASHING THE TOKYO MARKET SOME FOREIGN BROKERS IN TOKYO BELIEVE JAPAN'S ALLPOWERFUL FINANCE MINISTRY WAS TOO ARROGANT IN ARRANGING THE TERMS OF THE JR EAST SALE A FEW JAPANESE BROKERS ARGUED THAT THERE WAS SOME GOOD IN THE STOCK OFFERING THE ISSUE ITSELF WAS A SUCCESS FOR THE COMPANY AS IT TOOK THE VALUE OF JR EAST TO 22 BILLION FROM 14 BILLION IN ONE DAY SAID GEN YAMAGUCHI MANAGER OF THE PRIMARY MARKETS DIVISION AT NIKKO SECURITIES CO BUT THE IMPACT ON THE MARKET WAS TERRIBLE HE SAID IT TOOK ALL THE MONEY TO ONE STOCK ISSUE EVERYBODY SOLD THEIR PORTFOLIOS TO PICK UP THE STOCK JAPANESE BUREAUCRATS IN JANUARY WERE IN A HURRY TO TRY TO SELL OFF JAPAN TOBACCO BUT THIS COULD BE STALLED FOR SEVERAL MONTHS WHILE OFFICIALS STUDY HOW TO RUN THE NEXT OFFERING MORE SMOOTHLY PRIVATE COMPANIES WILL HOLD THEIR BREATH IN COMING WEEKS HOPING THE JR EAST SHARE PRICE AND THE OVERALL MARKET WILL STABILIZE AND THE REGULATORS WILL AGAIN LET BIG LISTED COMPANIES ISSUE STOCK WHICH HAS BEEN INFORMALLY BANNED FOR MORE THAN TWO YEARS FOREIGN BROKERS AND JAPANESE FIRMS WITH INTERNATIONAL EXPERIENCE HAVE A FEW IDEAS ABOUT WHAT TO DO DIFFERENTLY WITH THE NEXT PRIVATIZATION THE AUCTION PROCESS ITSELF MUST CHANGE SAID JERRY COUGHLAN EXECUTIVE DIRECTOR OF EQUITY CAPITAL MARKETS AT MORGAN STANLEY JAPAN LTD THE GOVERNMENT INITIALLY AWARDED 30 OF THE ISSUED SHARES TO THE HIGHEST BIDDERS AT WHATEVER PRICE THEY NAMED INSTEAD THEY SHOULD JUST GO DOWN YOUR LIST OF BIDS AND FIX A SINGLE PRICE MR COUGHLAN SAID THAT EASES CONFUSION ABOUT THE REAL INITIAL VALUE OF THE STOCK THE BALANCE OF THE JR EAST SHARES ON OFFER WERE SOLD TO THE PUBLIC THROUGH A LOTTERY THAT GAVE EACH WINNER A SINGLE SHARE THE RAFT OF SINGLESHARE OWNERS RUSHING TO SELL AFTER THE FIRST DAY'S GAINS MAY INDEED HAVE BEEN WHAT OVERWHELMED WEDNESDAY'S MARKET MR YAMAGUCHI OF NIKKO ALSO BELIEVES JR EAST SHOULD HAVE BEEN MORE HEAVILY SOLD TO FOREIGN INVESTORS MANY OF WHOM COMPLAINED THEY HAD TROUBLE BUYING SHARES THROUGH THE INITIAL AUCTION LONDON SHARES FINISHED HIGHER FRIDAY AFTER A LATE BUYING SURGE FRANKFURT STOCKS RALLIED 15 BUOYED BY HIGHER GERMAN BONDS AND STRONG US ECONOMIC GROWTH DATA HONG KONG STOCKS ROCKETED UP 35 TO A RECORD AS SEVERAL ASIAN BOURSES CLIMBED TO NEW HIGHS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11349 UP 057 REFLECTING INCREASES IN MARKETS IN THE AMERICAS AND THE ASIA/PACIFIC REGION AND A DROP IN EUROPEAN MARKETS STEEL STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10851 UP 263 OR 248 WITH LEADER OF MALAYSIA POSTING A 1017 GAIN IN ITS LOCAL CURRENCY WATERUTILITY STOCKS TRAILED AT 11925 DOWN 217 OR 179 WITH EAUX OF FRANCE SLIDING 214 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 80 POINTS TO 31710 THE FT 30STOCK INDEX ADDED 45 POINTS TO 23980 VOLUME WAS 8008 MILLION SHARES COMPARED WITH 7393 MILLION SHARES A DAY EARLIER THE LATE RUNUP WAS ATTRIBUTED TO PURCHASES OF STOCKS THAT HAVE PERFORMED WELL TO SPRUCE UP PORTFOLIOS AS THE MONTHLY ACCOUNTING PERIOD ENDED THE FT 100 ROSE 44 IN OCTOBER IN FRANKFURT AFTER A THREEDAY CONSOLIDATION THE DAX 30STOCK INDEX SURGED 3054 POINTS TO 206900 THE MARKET'S PICKUP BEGAN IN AFTERHOURS TRADING THURSDAY ON THE 28 EXPANSION OF US GROSS DOMESTIC PRODUCT IN THE THIRD QUARTER IN STOCKHOLM THE MARKET LOGGED ITS SECOND CONSECUTIVE RECORD HIGH SUPPORTED BY STRONG FOREIGN BUYING AND DECLINING BOND AND MONEY MARKET RATES IN HONG KONG THE HANG SENG INDEX SOARED 31882 POINTS TO 932909 TOPPING 9300 FOR THE FIRST TIME IN MORE THAN A MONTH OF FLYING IN RECORD TERRITORY AS INTERNATIONAL INVESTORS HAVE BEEN POURING IN CASH THE HANG SENG IS UP 69 FOR THIS YEAR IN SYDNEY SHARES SURGED 17 TO A SIXYEAR HIGH BOOSTED BY STRONG FOREIGN BUYING AND POSITIVE AUSTRALIAN INFLATION DATA IN TAIPEI STOCKS REBOUNDED ON NEWS THAT REGULATORS PLANNED TO REMOVE LIMITS ON FOREIGN INSTITUTIONAL INVESTMENTS IN THE MARKET IN MANILA SHARES AGAIN CLIMBED TO A RECORD HIGH 237283 ON THE COMPOSITE INDEX UP 4624 POINTS OR 2 BOOSTED BY TELECOMMUNICATIONS ISSUES IN WELLINGTON STOCKS RALLIED 13 TO A FOURYEAR HIGH PUSHED UP BY GAINS ON OVERSEAS BOURSES AND BANGKOK SHARES CONTINUED THEIR RECORDSETTING PACE JUMPING 18 TO A HISTORIC HIGH 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 9311010053 931101 BUSINESS BRIEF NORTH BROKEN HILL PEKO NET FOR FISCAL 94 TO MATCH OR EXCEED YEARAGO PROFIT THE CHAIRMAN OF AUSTRALIAN MINING AND TIMBER COMPANY NORTH BROKEN HILL PEKO LTD SAID HE EXPECTS NET INCOME IN THE CURRENT YEAR TO MEET OR EXCEED THE PREVIOUS YEAR'S IN THE FISCAL YEAR ENDED JUNE 30 1993 THE COMPANY EARNED 1324 MILLION AUSTRALIAN DOLLARS US883 MILLION ADDRESSING THE COMPANY'S ANNUAL MEETING MICHAEL DEELEY SAID PROFIT FROM OPERATIONS IN THE FISCAL YEAR TO DATE IS AHEAD OF THE YEAREARLIER PERIOD DIRECTORS EXPECT THAT THE PROFIT FOR THE FULL YEAR WILL BE SIMILAR TO OR EVEN A LITTLE BETTER THAN LAST YEAR HE ADDED NORTH BROKEN HILL EXPECTS TO RECORD AN ABNORMAL OR UNUSUAL GAIN OF A30 MILLION IN THE FISCAL FIRST HALF ENDING IN DECEMBER FROM THE SALE OF ITS PULP AND PAPER BUSINESSES TO AMCOR LTD FOR A415 MILLION THE OFFICIAL SAID 9311010052 931101 VALUE OF STOCKS TRADED ON BIG BOARD SETS RECORD NEW YORK THE NEW YORK STOCK EXCHANGE SAID A RECORD 1882 TRILLION OF STOCKS HAVE TRADED ON THE BIG BOARD SO FAR THIS YEAR SMASHING THE OLD HIGH SET IN 1987 WITH MORE THAN TWO MONTHS REMAINING THIS YEAR THE BIG BOARD FRIDAY BROKE THE PREVIOUS RECORD OF 1874 TRILLION THE BIG BOARD SAID THAT ON AN AVERAGE DAY THIS YEAR 9 BILLION OF STOCK TRADED ON THE EXCHANGE ALSO 16 OF THE BIG BOARD'S 20 HEAVIEST SHARE VOLUME WEEKS AND SEVEN OF THE 15 HEAVIEST SHARE VOLUME DAYS HAVE OCCURRED THIS YEAR 9311010051 931101 NEW PHASE OF PRUDENTIAL INQUIRY SPOTLIGHTS INDIVIDUALS BY MICHAEL SICONOLFI AND CHRISTI HARLAN STAFF REPORTERS OF THE WALL STREET JOURNAL THE REGULATORY HEAT IS STARTING TO RISE FOR SEVERAL FORMER SENIOR EXECUTIVES OF PRUDENTIAL SECURITIES INC THE SECURITIES AND EXCHANGE COMMISSION IS CONSIDERING FILING CIVIL ADMINISTRATIVE PROCEEDINGS AGAINST AS MANY AS 15 CURRENT AND FORMER PRUDENTIAL SECURITIES EMPLOYEES PEOPLE FAMILIAR WITH THE CASE SAID AT LEAST 11 FORMER EXECUTIVES AND BROKERS INCLUDING FORMER PRUDENTIAL SECURITIES BROKERAGE CHIEF RICHARD SICHENZIO AND HIS DEPUTY JOSEPH HAICK HAVE BEEN INFORMED BY SEC LAWYERS THAT THE AGENCY'S STAFF IS RECOMMENDING THAT THEY BE CHARGED WITH FAILING TO SUPERVISE WAYWARD BROKERS UNDER THEIR WATCH THE PEOPLE SAID SEPARATELY THE MANHATTAN AND DALLAS US ATTORNEY'S OFFICES ARE SEEKING TO GATHER EVIDENCE OF WRONGDOING BY SEVERAL FORMER TOP PRUDENTIAL SECURITIES OFFICIALS IN SETTING UP AND SELLING LIMITED PARTNERSHIPS IN THE 1980S PEOPLE CLOSE TO THAT CASE SAID THE PROBE IS CURRENTLY CENTERING ON THE ACTIVITIES OF J FREDERIC STORASKA A FORMER HIGHFLYING BROKER AND JAMES DARR FORMER PARTNERSHIP CHIEF AT WHAT WAS THEN CALLED PRUDENTIALBACHE SECURITIES INC MEANWHILE SEVERAL STATES INCLUDING GEORGIA TEXAS CALIFORNIA FLORIDA NEW YORK AND NEW JERSEY ARE EXAMINING WHETHER ANY FORMER PRUDENTIAL EXECUTIVES VIOLATED STATE LAWS IN SETTING UP OR SELLING THE PARTNERSHIPS STATE SECURITIES REGULATORS SAID THE FEDERAL AND STATE PROSECUTORS ALONG WITH THE DALLAS COUNTY DISTRICT ATTORNEY'S OFFICE ARE GETTING HELP FROM AT LEAST ONE FORMER BROKER IN PRUDENTIAL'S DALLAS BRANCH WHO AGREED TO COOPERATE IN EXCHANGE FOR THE DISMISSAL OF A STATE FRAUD INDICTMENT AGAINST HIM IN DALLAS THE PROBES INTO INDIVIDUAL EXECUTIVES REPRESENT A NEW PHASE OF THE INVESTIGATION INTO THE PARTNERSHIP ACTIVITIES OF PRUDENTIAL SECURITIES THE NATION'S FOURTHLARGEST BROKERAGE FIRM AND A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA PREVIOUSLY INVESTIGATORS PRIMARILY HAD FOCUSED ON THE BROKERAGE FIRM'S SALES PRACTICES IN PEDDLING MORE THAN 7 BILLION OF PARTNERSHIPS TO ABOUT 400000 INVESTORS DURING THE 1980S LAST MONTH THE SEC ALONG WITH 49 STATE SECURITIES REGULATORS REACHED A SETTLEMENT UNDER WHICH PRUDENTIAL AGREED TO PAY AT LEAST 371 MILLION IN FINES AND RESTITUTION NONE OF THE EXECUTIVES HAS BEEN CHARGED WITH ANY WRONGDOING IN THE CRIMINAL CASE PROSECUTORS ARE TRYING TO DETERMINE AMONG OTHER THINGS WHETHER THERE WERE ANY ILLEGAL PAYMENTS MADE TO PRUBACHE EMPLOYEES BY PARTNERSHIP SPONSORS THE PEOPLE SAID THE INVESTIGATION COULD EVENTUALLY CENTER ON THE FIRM ITSELF PEOPLE FAMILIAR WITH THE CASE SAID BUT THE CRIMINAL PROBES ARE IN EARLY STAGES ANY CHARGES WOULDN'T BE FILED UNTIL AT LEAST NEXT YEAR THE SEC INVESTIGATION IS FURTHER ALONG MESSRS SICHENZIO AND HAICK HAVE RECEIVED SOCALLED WELLS REQUESTS THE PEOPLE SAID BEFORE BRINGING CIVIL CHARGES THE SEC STAFF INVITES TARGETS TO EXPLAIN WHY THEY SHOULDN'T BE CHARGED WITH VIOLATING SECURITIES LAWS THESE WELLS SUBMISSIONS TYPICALLY ARE REQUESTED AFTER THE SEC HAS COMPLETED MOST OF ITS INVESTIGATION AMONG THOSE WHO HAVEN'T RECEIVED WELLS REQUESTS ARE MESSRS DARR AND STORASKA GEORGE BALL PRUBACHE'S FORMER CHAIRMAN AND CHIEF EXECUTIVE ALSO HASN'T RECEIVED A WELLS REQUEST THE PEOPLE SAID THE SEC INCREASINGLY HAS HELD SENIOR WALL STREET EXECUTIVES ACCOUNTABLE FOR PROPERLY SUPERVISING THE ACTIVITIES OF UNDERLINGS LAST DECEMBER THE SEC CENSURED SALOMON INC'S FORMER CHAIRMAN JOHN GUTFREUND AMONG OTHERS FOR FAILING TO SUPERVISE GOVERNMENTBOND TRADER PAUL MOZER DURING THE FIRM'S TREASURYAUCTION BIDDING SCANDAL THE SEC ALSO CENSURED FREDERICK JOSEPH DREXEL BURNHAM LAMBERT INC'S FORMER CHIEF EXECUTIVE FOR FAILING TO SUPERVISE MICHAEL MILKEN DREXEL'S FORMER JUNKBOND KING IN AN INTERVIEW MR BALL SAYS CLEARLY AS THE CEO OF THE FIRM I ACCEPT ALL THE RESPONSIBILITY THAT A CEO SHOULD BUT THERE'S A CLEAR DISTINCTION BETWEEN THAT AND REGULATORY REQUIREMENTS MR BALL ADDS INDEED NOT ONLY WAS I UNAWARE OF ANY WRONGDOING THERE ARE LOTS OF DOCUMENTS AND RECORDS AND PEOPLE WHO WILL TESTIFY THAT I WORKED TOWARD MAINTAINING AND INSISTING THAT THE FIRM DEVELOP A VERY HIGH DEGREE OF SALES PRACTICES STANDARDS SAMUEL SKIP KEESAL MR BALL'S LAWYER SAID HIS CLIENT HAD NO KNOWLEDGE OR INVOLVEMENT IN ANY WRONGDOING IF IN FACT THERE WAS ANY HE PREDICTED THAT MR BALL WILL BE COMPLETELY EXONERATED MR STORASKA HASN'T MET WITH SEC LAWYERS RATHER HE WAS ASKED BY THE MANHATTAN US ATTORNEY'S OFFICE TO PROVIDE EVIDENCE AGAINST FORMER SENIOR PRUDENTIAL EXECUTIVES THE PEOPLE SAID A NUMBER OF FORMER PRUDENTIAL BROKERS HAVE BEEN ASKED WHETHER THEY CAN HELP SUPPLY EVIDENCE AGAINST FORMER PRUDENTIAL SENIOR MANAGERS SAID DENNIS BLOCK MR STORASKA'S LAWYER MR BLOCK DECLINED TO ELABORATE PAUL GRAND AN ATTORNEY FOR MR DARR SAID HIS CLIENT HASN'T BEEN TOLD THAT HE'S THE SUBJECT OF ANY INVESTIGATION BY PROSECUTORS I KNOW OF NO INVESTIGATION OF JIM DARR MR GRAND SAID ARTHUR F MATHEWS AN ATTORNEY FOR MR SICHENZIO DECLINED TO COMMENT HOWARD ELISOFON WHO REPRESENTS MR HAICK SAID THAT WHILE HIS CLIENT SUPERVISED PRUBACHE BROKERS HE HAD NO DIRECT SUPERVISORY RESPONSIBILITY OVER THE PARTNERSHIP GROUP WHEN ALL THE DUST SETTLES AND ALL THE FACTS UNFOLD I'M VERY CONFIDENT IT WILL BE DETERMINED THAT JOE HANDLED ALL HIS SUPERVISORY RESPONSIBILITIES IN AN EXEMPLARY FASHION AND THAT HE WILL BE TOTALLY VINDICATED MR ELISOFON SAID KENNETH VIANALE ASSISTANT US ATTORNEY IN MANHATTAN TERRY HART ASSSISTANT US ATTORNEY IN DALLAS AND THOMAS NEWKIRK THE SEC'S ASSOCIATE ENFORCEMENT DIRECTOR ALL DECLINED TO COMMENT A PRUDENTIAL SPOKESMAN SAID ONLY WE HAVE RECEIVED INFORMATION THAT THE SEC MAY BE LOOKING INTO BRINGING ADMINISTRATIVE PROCEEDINGS AGAINST A NUMBER OF FORMER SENIOR EXECUTIVES BRANCH MANAGERS AND BROKERS AS WELL AS A FEW CURRENT EMPLOYEES BUT NO CURRENT MEMBER OF SENIOR MANAGEMENT IS INVOLVED THE SEC'S INVESTIGATION OF INDIVIDUALS FOLLOWS A CIVIL COMPLAINT THE AGENCY FILED AGAINST PRUDENTIAL SECURITIES LAST MONTH IN A WASHINGTON FEDERAL COURT THAT SUIT PAINTS A PICTURE OF PRUBACHE BROKERS IN THE FIRM'S PARTNERSHIP OR DIRECT INVESTMENT GROUP RUNNING ROUGHSHOD OVER UNSUSPECTING CLIENTS WITHOUT SUPERVISION MEANWHILE THE SPECIALIZEDCRIME DIVISION OF THE DALLAS COUNTY DISTRICT ATTORNEY'S OFFICE IS INTENSIFYING ITS TWOYEAROLD INVESTIGATION OF PRUDENTIAL SALES PRACTICES IN THAT CASE JEFFREY SCHILLER A FORMER BROKER IN PRUDENTIAL'S DALLAS BRANCH HAS AGREED TO COOPERATE IN EXCHANGE FOR THE DISMISSAL OF A STATE FRAUD INDICTMENT AGAINST HIM IN DALLAS THE INDICTMENT HANDED UP IN JULY 1992 HAS BEEN THE ONLY ONE RETURNED IN THE INVESTIGATION ACCORDING TO TED STEINKE WHO HEADS THE SPECIALIZEDCRIME DIVISION THE INVESTIGATION IS CONTINUING MR STEINKE SAYS 9311010050 931101 CHEVRON UNIT SIGNS ACCORD TO EXPLORE ON CHINA COAST BEIJING CHEVRON CORP SAID ITS CHEVRON OVERSEAS PETROLEUM UNIT SIGNED A CONTRACT WITH CHINA TO EXPLORE FOR OIL AND NATURAL GAS IN A 700SQUAREMILE AREA OF THE EAST CHINA SEA ABOUT 250 MILES SOUTHEAST OF SHANGHAI THE SAN FRANCISCOBASED OIL CONCERN SAID THE NEW AGREEMENT IS THE COMPANY'S FOURTH PRODUCTIONSHARING CONTRACT IN CHINA BUT WILL BE THE FIRST TIME CHEVRON EXPLORES THERE ON ITS OWN TERMS WEREN'T DISCLOSED AND A COMPANY SPOKESWOMAN DECLINED TO COMMENT CHEVRON'S ANNOUNCEMENT CAME DAYS AFTER TEXACO INC SAID IT SIGNED PETROLEUM CONTRACTS WITH BEIJING TO EXPLORE THREE AREAS IN THE EAST CHINA SEA COVERING ABOUT TWO MILLION ACRES OR ROUGHLY 3000 SQUARE MILES A TEXACO UNIT HAS A 40 INTEREST IN THE CONTRACT AREAS PARTNERS AGIP OVERSEAS LTD AND MAERSK OIL CHINA AS HOLD 30 EACH 9311010049 931101 BIG BOARD TAKES DISCIPLINARY STEPS IN VIOLATIONS CASES BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE TOOK DISCIPLINARY ACTION AGAINST TWO SECURITIES FIRMS AND 16 INDIVIDUALS FOR VIOLATIONS OF THE EXCHANGE'S RULES OR FEDERAL SECURITIES LAWS JOHNSTON LEMON & CO WASHINGTON WAS FINED 125000 BASED ON FINDINGS THAT THE FIRM VIOLATED NET CAPITAL AND RECORDKEEPING REQUIREMENTS THE FIRM DID NOT ADMIT OR DENY THE ALLEGATIONS IN ADDITION KENNETH I MILLER CENTREVILLE VA THE FIRM'S CHIEF FINANCIAL OFFICER WAS FINED 5000 AND BARRED FOR SIX MONTHS FROM WORKING AS A CHIEF FINANCIAL OFFICER AT A SELFCLEARING FIRM AND RAYMOND L FARWELL SILVER SPRINGS MD A FORMER SENIOR VICE PRESIDENT AND MANAGER OF THE FIRM'S OPERATIONS WAS FINED 2500 AND BARRED FOR SIX MONTHS FROM ANY DECISIONMAKING POSITION INVOLVING PLEDGE OF SECURITIES FOR CUSTOMERS OR FIRM BANK LOANS THE BIG BOARD SAID THE TWO EXECUTIVES HAD FAILED TO PROPERLY SUPERVISE EMPLOYEES THEY DIDN'T ADMIT OR DENY THE ALLEGATIONS JAMES LEMON A PRINCIPAL AT JOHNSTON LEMON SAID THE VIOLATIONS RESULTED FROM A SHORTTERM TECHNICAL PROBLEM THAT OCCURRED FIVE YEARS AGO WHEN THE FIRM SWITCHED COMPUTER SYSTEMS THE BIG BOARD DIDN'T ALLEGE INTENT ON THE PART OF THE FIRM OR EMPLOYEES MR LEMON SAID THERE WERE NO CUSTOMER COMPLAINTS OR LOSSES HE SAID THAT MR MILLER CONTINUES TO BE CHIEF FINANCIAL OFFICER BUT THAT MR FARWELL IS NO LONGER WITH THE FIRM THE EXCHANGE ALSO FINED FORMER MEMBER FIRM BE PARTNERS NEW YORK 40000 FOR ALLOWING EMPLOYEES TO PERFORM THE DUTIES OF A SECURITIES TRADER AND A SECURITIES TRADING SUPERVISOR WITHOUT BEING PROPERLY REGISTERED THE BIG BOARD ALSO SAID THE FIRM DIDN'T KEEP PROPER RECORDS OR ESTABLISH PROPER TRADING PROCEDURES BE PARTNERS DIDN'T ADMIT OR DENY ALLEGATIONS WILLIAM PETER CHU NEWARK DEL A FORMER NONREGISTERED EMPLOYEE AT BE PARTNERS WAS SUSPENDED FOR THREE WEEKS WHILE MARK CHARLES SCHALLES PINE BROOK NJ A FORMER GENERAL PARTNER OF THE FIRM WAS FINED 5000 NEITHER ADMITTED OR DENIED ALLEGATIONS UNLESS OTHERWISE INDICATED FIRMS AND INDIVIDUALS COULDN'T BE REACHED OR HAD NO COMMENT OTHERS DISCIPLINED INCLUDED DAVID RATTINER TUCKAHOE NY BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS IRVING EDWARD BECHER BROOKLYN NY BARRED FOUR YEARS WITHOUT ADMITTING OR DENYING ALLEGATIONS FRANK PAUL RAVENNA JR SPRING VALLEY NY BARRED FOR FOUR YEARS AND THREE MONTHS AFTER A CONTESTED HEARING DANIEL G GARVER BLOOMFIELD MICH FINED 2500 AND CENSURED WITHOUT ADMITTING OR DENYING ALLEGATIONS KEITH GENTILE LYNN MASS WAS SUSPENDED FOR THREE MONTHS HE DIDN'T ADMIT OR DENY ALLEGATIONS JAMES FRANCIS GROTE CLARK NJ BARRED ONE YEAR WITHOUT ADMITTING OR DENYING ALLEGATIONS DENNIS G SMITH BERKELEY HEIGHTS NJ BARRED SIX MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS THREE INDIVIDUALS WERE BARRED FOR MISAPPROPRIATION OF FUNDS WITHOUT ADMITTING OR DENYING ALLEGATIONS JILLIAN JANNELLE NUTTBROCK MIAMI WHO SOUGHT TO TRANSFER 475025 INTO AN ACCOUNT MAINTAINED IN THE NAME OF HER HUSBAND LINDA RAE MILLER KINGSTON NY AND LAURA KRISTINA PATTERSON EDWARDSVILLE ILL 9311010048 931101 TECHNOLOGY BRIEF PROTEIN DESIGN LABS INC CORANGE LTD WILL INVEST IN BIOTECHNOLOGY CONCERN PROTEIN DESIGN LABS INC SAID IT REACHED AN AGREEMENT WITH BERMUDABASED CORANGE LTD UNDER WHICH CORANGE WILL INVEST AS MUCH AS 75 MILLION IN THE BIOTECHNOLOGY CONCERN THROUGH THE PURCHASE OF ITS STOCK UNDER A SEPARATE LICENSING AGREEMENT CORANGE WILL ALSO ACQUIRE CERTAIN MARKETING RIGHTS TO SEVERAL POTENTIAL DRUGS THAT PROTEIN IS DEVELOPING IN RETURN PROTEIN SAID CORANGE WILL MAKE PAYMENTS THAT COULD REACH 131 MILLION PROTEIN OF MOUNTAIN VIEW CALIF SAID IT ALSO AGREED WITH CORANGE TO NEGOTIATE FUTURE AGREEMENTS UNDER WHICH THE COMPANIES WOULD MANUFACTURE AND SUPPLY CERTAIN OF EACH OTHER'S PRODUCTS FOR USE IN CLINICAL TRIALS AND POTENTIAL FUTURE PRODUCT SALES CORANGE IS A MAJOR MAKER OF DIAGNOSTIC PRODUCTS BUOYED BY NEWS OF THE DEALS PROTEIN'S STOCK CLOSED AT 21 UP 4875 IN NATIONAL OVERTHECOUNTER TRADING FRIDAY 9311010046 931101 BUSINESS BRIEF DUN & BRADSTREET CORP FIRM UNVEILS PLAN TO CUT STAFF BY SEVERAL THOUSAND' DUN & BRADSTREET CORP SAID IT HAS EMBARKED ON A PLAN TO ELIMINATE SEVERAL THOUSAND JOBS WORLDWIDE THROUGH ATTRITION AND POSSIBLE LAYOFFS OVER THE NEXT 15 TO 24 MONTHS A COMPANY SPOKESMAN SAID THE REDUCTIONS ABOUT ONETHIRD OF WHICH HAVE ALREADY BEEN MADE SINCE THE BEGINNING OF 1993 ARE BEING UNDERTAKEN IN REDUCE COSTS AND THAT SAVINGS FROM THE STREAMLINING WILL BE INVESTED IN PROGRAMS TO ENHANCE REVENUE GROWTH DUN & BRADSTREET HAS 52000 EMPLOYEES WORLDWIDE THE SPOKESMAN FOR THE NEW YORK BUSINESSINFORMATIONSERVICES COMPANY SAID INDIVIDUAL UNITS WILL HAVE DISCRETION OVER STAFF CUTS THE COMPANY'S DUN & BRADSTREET INFORMATION SERVICES UNIT MURRAY HILL NJ RECENTLY OFFERED ITS 7000 EMPLOYEES IN NORTH AMERICA A VOLUNTARYSEPARATION PACKAGE IN AN EFFORT TO CUT SEVERAL HUNDRED JOBS A SPOKESMAN FOR THE UNIT SAID THAT IF THERE AREN'T ENOUGH TAKERS OF THE VOLUNTARYSEVERANCE PACKAGE THE UNIT MIGHT HAVE TO LAY OFF WORKERS 9311010045 931101 BUSINESS BRIEF BROOKE GROUP LTD FIRM COMPLETES FIRST PHASE OF PLANNED DEBT EXCHANGE BROOKE GROUP LTD SAID IT COMPLETED THE FIRST PHASE OF ITS AGREEMENT WITH NOTEHOLDERS TO EXCHANGE ITS POSITION IN NEW VALLEY CORP FOR SOME OF ITS NOTES OUTSTANDING BROOKE GROUP IS A NEW YORK HOLDING COMPANY NEW VALLEY UPPER SADDLE RIVER NJ IS THE PARENT OF WESTERN UNION FINANCIAL SERVICES INC NEW VALLEY HAS BEEN OPERATING UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE SINCE MARCH APOLLO INVESTMENT FUND HEADED BY LEON BLACK WAS THE PRIMARY PARTICIPANT IN THE EXCHANGE AND HE HAS PLEDGED TO INVEST ENOUGH CAPITAL INTO NEW VALLEY TO GAIN CONTROL OF THE COMPANY DEBTHOLDERS WILL EXCHANGE 499 MILLION OF THE APPROXIMATELY 89 MILLION FACE AMOUNT OF 16125 SENIOR SUBORDINATED NOTES OUTSTANDING 39 MILLION OF THE APPROXIMATELY 131 MILLION OF 145 SUBORDINATED NOTES AND WILL PAY BROOKE GROUP 219 MILLION IN CASH DEBTHOLDERS INVOLVED IN THE EXCHANGE WILL RECEIVE BROOKE GROUP'S 42 STAKE OF NEW VALLEY COMMON STOCK AND ITS 43 STAKE IN NEW VALLEY'S CLASS A PREFERRED 9311010044 931101 BUSINESS BRIEF LG&E ENERGY CORP SUBSIDIARY PLANS TO REDUCE WORK FORCE BY NEARLY 10 LG&E ENERGY CORP'S LOUISVILLE GAS & ELECTRIC CO UNIT SAID IT IS ELIMINATING 292 POSITIONS OR 96 OF ITS WORK FORCE LOUISVILLE GAS SAID THAT 264 OF THE JOBS ARE HELD BY MEMBERS OF THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 2100 THE REST ARE MANAGERS THE UNIT EMPLOYS 3050 PEOPLE A SPOKESWOMAN FOR THE UNIT OF THE LOUISVILLE KY ELECTRIC AND GAS UTILITY SAID THOSE AFFECTED ARE INVOLVED IN CAPITAL CONSTRUCTION PROJECTS WE HAVE NO CAPITAL CONSTRUCTION PROJECTS PLANNED FOR THE NEAR OR LONG TERM WE CAN MEET OUR CAPACITY NEEDS THROUGH OTHER MEANS SHE SAID LG&E PLANS TO OFFER ALL AFFECTED SALARIED EMPLOYEES AN ENHANCED SEPARATION PACKAGE THE COMPANY SAID IT IS TALKING WITH REPRESENTATIVES OF IBEW LOCAL 2100 ON THE POSSIBILITY OF NEGOTIATING SEPARATION BENEFITS FOR UNION EMPLOYEES 9311010043 931101 BUSINESS BRIEF THYSSEN AG INQUIRY OF BOARD MEMBERS IS DROPPED BY PROSECUTOR THE BERLIN PROSECUTORS' OFFICE SAID IT DROPPED A FRAUD INVESTIGATION AGAINST BOARD MEMBERS OF THYSSEN AG IN CONNECTION WITH THE COMPANY'S TAKEOVER OF THE EASTERN GERMAN FIRM VEBKOMINAT METALLURGIEHANDEL HOWEVER THE PROSECUTORS' OFFICE SAID IT WOULD CONTINUE WITH AN INVESTIGATION INTO WHETHER AN EMPLOYEE OF THYSSEN AN EMPLOYEE OF THE FORMER COMPANY VEB AND AN EMPLOYEE OF THE TREUHANDANSTALT WORKED TOGETHER TO DEFRAUD THE TREUHAND OF 200 MILLION MARKS 1195 MILLION THE TREUHAND IS THE ENTITY CREATED BY THE WESTERN GERMAN GOVERNMENT TO OVERSEE THE PRIVATIZATION OF EASTERN GERMAN STATEOWNED COMPANIES ON OCT 14 BERLIN PROSECUTORS LAUNCHED RAIDS ON THE OFFICES OF THYSSEN AND VEB ACROSS GERMANY AND CONFISCATED DOCUMENTS BUT AN EXAMINATION OF THE CONFISCATED DOCUMENTS SHOWED NO GROUNDS FOR THE SUSPICIONS THAT THYSSEN BOARD MEMBERS KNEW OF ANY ATTEMPTS TO DEFRAUD THE TREUHAND PROSECUTORS SAID 9311010042 931101 BUSINESS BRIEF STERLING BANCORP BANK SAYS EARNINGS ROSE 42 IN THE THIRD QUARTER STERLING BANCORP A PROVIDER OF BANKING SERVICES TO MIDSIZE COMPANIES AND HIGH NETWORTH INDIVIDUALS IN THE NEW YORK CITY AREA EXPECTS TO POST A 42 JUMP IN THIRDQUARTER PROFIT REFLECTING AN EXPANDING CUSTOMER BASE IN AN INTERVIEW LOUIS J CAPPELLI CHAIRMAN AND CHIEF EXECUTIVE SAID HE EXPECTS THE BANK TO REPORT NET INCOME OF 800000 OR 13 CENTS A SHARE UP FROM 562000 OR NINE CENTS A SHARE A YEAR EARLIER THE BANK PROVIDES SERVICES TO MIDMARKET COMPANIES THOSE THAT TEND TO BORROW IN THE 500000TO10 MILLION RANGE COMPARED WITH LARGER BANKING INSTITUTIONS THAT GENERALLY WON'T MAKE A LOAN UNLESS ITS MORE THAN 3 MILLION OR 5 MILLION MR CAPPELLI SAID THERE ARE THOUSANDS OF COMPANIES THAT FALL INTO THAT FRAME IT'S A NICHE WE CAN EXPLOIT 9311010041 931101 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 3/16 HIGH 3 LOW 3 1/16 NEAR CLOSING BID 3 1/8 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 44 DAYS 308 45 TO 84 DAYS 327 85 TO 179 DAYS 330 180 TO 249 DAYS 332 250 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 315 60 DAYS 330 90 DAYS CERTIFICATES OF DEPOSIT 255 ONE MONTH 265 TWO MONTHS 271 THREE MONTHS 277 SIX MONTHS 293 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 330 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 327 60 DAYS 322 90 DAYS 322 120 DAYS 322 150 DAYS 322 180 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 7/16 3 5/16 TWO MONTHS 3 7/16 3 5/16 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 7/16 THREE MONTHS 3 7/16 SIX MONTHS 3 5/8 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 OCTOBER 251993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 308 13 WEEKS 319 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 671 60 DAYS 679 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 669 60 DAYS 679 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 490 6/2 RATE CAPPED ONEYEAR 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 9311010040 931101 MULTIMEDIA SOFTWARE PIONEER HOPES TO MAKE HOLE IN ONE WITH SPORTS DISKS BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA BY HIS OWN ADMISSION BEN DYER PLAYED A LOT OF BAD GOLF IN THE PAST THEREIN LAY THE SEEDS OF AN ENTREPRENEURIAL VENTURE ONE OF THE PIONEERS IN SOFTWARE FOR PERSONAL COMPUTERS MR DYER HEARD LAST YEAR ABOUT 3DO CO'S MUCHTOUTED MULTIPLAYER WHICH WILL PLAY BOTH AUDIO AND VIDEO CDS WHILE ALLOWING VIEWERS TO MANIPULATE IMAGES AND TEXT HIS IDEA WAS TO CREATE INSTRUCTIONAL SPORTS DISKS FOR THE MACHINE A YEAR AGO THE ENTREPRENEUR AND HIS PARTNERS ASSEMBLED A GROUP OF PRIVATE INVESTORS AND LAUNCHED INTELLIMEDIA SPORTS INC THE VENTURE HAS DEVELOPED A LINE OF INSTRUCTIONAL SPORTS DISKS FOR THE 3DO MACHINE INCLUDING GOLF PRO TOM KITE GIVING INTERACTIVE POINTERS ON THE SPORT THERE ARE PEOPLE WHO ARE HOPELESSLY ADDICTED TO GOLF WHO WILL BUY EVERYTHING OUT THERE SAYS MR DYER CONFIDENTLY INTERACTIVE SPORTS PRODUCTS WOULD ALLOW USERS TO STOP THE VIDEO ACTION AND ASK QUESTIONS ABOUT TECHNIQUES AND STRATEGIES AND SEE MANY OF THEM DEMONSTRATED MR DYER 45 YEARS OLD IS BY NO MEANS THE ONLY SOFTWARE SUPPLIER FOR THE 3DO MULTIPLAYER WHICH WILL BE AVAILABLE IN TIME FOR THIS CHRISTMAS BUT HE IS ONE OF THE EARLIEST WITH ACTUAL PRODUCTS THAT WORK 10 CDS FOR THE CHRISTMAS SELLING SEASON AND HIS COMPANY IS SO FAR THE ONLY OCCUPANT OF THE INSTRUCTIONALSPORTS NICHE MOST COMPANIES SUPPLYING 3DO PRODUCTS ARE CREATING GAMES THESE GUYS ARE OFF IN AN AREA WHERE NO ONE ELSE IS AND I THINK IT WILL BE VERY LUCRATIVE FOR THEM SAYS HUGH MARTIN CHIEF OPERATING OFFICER OF 3DO CO WHICH IS BASED IN SAN MATEO CALIF AND WHOSE BACKERS INCLUDE MATSUSHITA ELECTRIC INDUSTRIAL CO AMERICAN TELEPHONE & TELEGRAPH CO AND TIME WARNER INC MR DYER GREW UP IN GAINESVILLE GA GRADUATED FROM GEORGIA INSTITUTE OF TECHNOLOGY WHERE HE STUDIED INDUSTRIAL ENGINEERING AND LATER GOT A MASTER'S DEGREE IN BUSINESS ADMINISTRATION FROM GEORGIA STATE UNIVERSITY AFTER A STINT WITH AT&T HE HOOKED UP WITH A GAINESVILLE FRIEND AND BOUGHT A HARDWARE STORE I'M PROBABLY THE ONLY PERSON WHO CAN LEGITIMATELY SAY HE WENT FROM HARDWARE TO SOFTWARE MR DYER SAYS IN THE MID1970S HE AND A GROUP OF PARTNERS WHO WERE ALSO COMPUTER JOCKS FROM TECH WERE AMONG THE FIRST TO WRITE APPLICATION SOFTWARE FOR THE THENNEW PERSONAL COMPUTER STARTING A COMPANY THAT THEY CALLED PEACHTREE SOFTWARE CORP THEY CREATED FULLSYSTEM ACCOUNTING PROGRAMS FOR SMALL BUSINESSES THEN AT THE AGE OF 33 MR DYER AND HIS PARTNERS SOLD THE COMPANY FOR 55 MILLION IN 1981 TO MANAGEMENT SCIENCE AMERICA INC WE HAD GROWN UP IN RELATIVELY MODEST CIRCUMSTANCES AND IT WAS PRETTY TANTALIZING TO ACHIEVE SOME MINIMUM LEVEL OF LUXURY MR DYER RECALLS MR DYER STAYED WITH PEACHTREE FOR A COUPLE OF YEARS BUT WAS EVEN THEN ITCHY TO GET INTO INTERACTIVE TECHNOLOGY IN 1983 HE LAUNCHED A NEW VENTURE THAT INVOLVED SETTING UP INTERACTIVE COMPUTER TERMINALS FOR PROSPECTIVE HOME BUYERS IN SHOPPING MALLS USERS OF THE MACHINES COULD DIRECT THEM TO SEARCH FOR NEIGHBORHOODS NUMBER OF BEDROOMS AND OTHER HOUSING SPECIFICATIONS THAT WOULD THEN BE MATCHED WITH HOMES FOR SALE CALLING IT A NOBLE EXPERIMENT MR DYER SAYS THAT THE COMPANY COMSELL INC WAS ABOUT NINE OR 10 YEARS TOO SOON I THOUGHT I WAS ON THE BLEEDING EDGE RATHER THAN THE LEADING EDGE IT DID HOWEVER ATTRACT THE ATTENTION OF RUPERT MURDOCH'S NEWS CORP WHICH OWNED A STABLE OF TRAVEL MAGAZINES AND WANTED TO APPLY THE CONCEPT TO THE TRAVEL INDUSTRY MR DYER COMPLETED THE SALE OF HIS COMPANY TO MR MURDOCH IN 1988 AND WORKED FOR WHAT HE CALLS THE MURDOCHIANS FOR A SHORT TIME BEFORE LEAVING TO HEAD UP A SMALL ATLANTA BANK HOLDING COMPANY THEN LAST YEAR MR DYER SAYS HE AND A GROUP OF PARTNERS BELIEVED THE TECHNOLOGY AND THE TIMES WERE RIGHT TO FORM INTELLIMEDIA THEY REJECTED THE IDEA OF PRODUCING GAMES IN PART BECAUSE THAT WAS WHAT EVERYBODY ELSE WAS DOING TO FUND THE COMPANY MR DYER PUT TOGETHER A GROUP OF PRIVATE INVESTORS INCLUDING MEDIA CONGLOMERATE COX ENTERPRISES INC AND A GROUP OF ABOUT 50 OF ATLANTA'S MOST PROMINENT BUSINESS PEOPLE WITH AN INTRODUCTION FROM VENTURE CAPITALISTS INTELLIMEDIA OFFICIALS MET WITH EXECUTIVES OF 3DO AND HATCHED PLANS TO CREATE SOFTWARE FOR THAT STARTUP COMPANY'S NEW MACHINES MR DYER IS ALSO CONFIGURING HIS PRODUCTS TO WORK ON APPLE AND IBMCOMPATIBLE COMPUTERS AS WELL AS ONE DAY CABLETV SYSTEMS WE'RE TRYING TO BE AS PORTABLE AS WE CAN HE SAYS MR DYER ALSO JUST SIGNED AN AGREEMENT WITH CAPITAL CITIES/ABC'S ESPN TO PRODUCE 20 INSTRUCTIONAL VIDEOS AND INTERACTIVE CDS FOR THE SPORTS NETWORK ESPN EXPECTS THE SHOWS TO HAVE A LONGER SHELF LIFE THAN VIDEOS THAT SIMPLY HIGHLIT OR REPLAY SPORTING EVENTS SAYS THOMAS HAGOPIAN VICE PRESIDENT OF ESPN ENTERPRISES EVEN SO INTELLIMEDIA FACES SOME BIG OBSTACLES AND UNKNOWNS THE BIGGEST MAY BE THE UNCERTAINTY OF DEMAND FEW INDUSTRY EXECUTIVES ARE WILLING TO FORECAST THE MARKET FOR INTERACTIVE SOFTWARE THE INTERACTIVE MARKET IS GOING TO BE SLOWER TO TAKE OFF THAN SOME PEOPLE THINK SAYS TECHNOLOGY ANALYST STEVE KRAUSE OF SRI INTERNATIONAL CONSULTANTS IN MENLO PARK CALIF MOST EXPERTS THINK INTERACTIVE PRODUCT SALES WILL INITIALLY BE DRIVEN BY GAMES BUT EVEN 3DO CAUTIONS THAT THAT MARKET IS STILL A SLIVER OF THE SIZE OF THE HOMEVIDEO BUSINESS MOREOVER COMPETITION FOR MULTIMEDIA TECHNOLOGY IS FIERCE GIVEN THE UNPREDICTABLE OUTLOOK INTERACTIVESOFTWARE DEVELOPERS SUCH AS INTELLIMEDIA WILL NEED A STOCKPILE OF CASH TO RIDE OUT A PERIOD OF MARKET CONFUSION MR KRAUSE SAYS MR DYER SAYS HIS COMPANY IS ADEQUATELY FUNDED INTELLIMEDIA EXPECTS TO ROLL OUT 100000 UNITS BY THE CHRISTMAS SHOPPING SEASON MR DYER SAYS HE WILL HAVE A BETTER IDEA OF INTELLIMEDIA'S POTENTIAL AFTER THE CHRISTMAS AND SPRING SELLING SEASONS MEANWHILE THE COMPANY IS TINKERING WITH VIRTUALREALITY VERSIONS OF ITS PRODUCTS IN WHICH GOLF PROS AND BASEBALL INSTRUCTORS MIGHT TALK BACK TO CONSUMERS CORRECTING THEIR BATTING SWINGS AND PERFECTING THEIR PUTTING TECHNIQUES ALL OF THAT IS A LONGTERM OBJECTIVE MR DYER SAYS ADDING IN THIS BUSINESS LONGTERM MAY MEAN 10 MINUTES 9311010039 931101 WHAT'S NEWS BUSINESS AND FINANCE CORPORATE PROFITS SURGED IN THE THIRD QUARTER REFLECTING COSTCUTTING EFFORTS A WALL STREET JOURNAL SURVEY SHOWS THAT 597 MAJOR COMPANIES' EARNINGS ROSE A CUMULATIVE 24 FROM THE 1992 PERIOD A SHARP ACCELERATION FROM THE 11 GAIN IN THE SECOND QUARTER BUT EVEN THOUGH SOME PROFITS WERE STELLAR AND MOST EXCEEDED EXPECTATIONS ANALYSTS NOW WORRY THAT COMPANIES MAY HAVE TROUBLE SUSTAINING THE RECENT STRONG PACE OF GROWTH CONSUMER SPENDING ROSE 03 IN SEPTEMBER EVEN THOUGH PERSONAL INCOME GAINED ONLY 01 THE TREND IS MAKING MANY ECONOMISTS VERY UPBEAT ABOUT THE RECOVERY'S STRENGTH KMART AGREED TO SELL ITS PAYLESS DRUGSTORES UNIT FOR 1 BILLION TO THE INVESTMENT FIRM THAT CONTROLS THRIFTY STORES AND IS IN TALKS TO SELL MANY OF ITS PACE WAREHOUSE CLUBS TO RIVAL WALMART PEOPLE CLOSE TO THE TALKS SAID THE WHITE HOUSE IS URGING US COMPANIES TO PLEDGE NOT TO MOVE JOBS TO MEXICO IF THE NORTH AMERICAN FREE TRADE AGREEMENT PASSES BUT CORPORATIONS ARE BALKING AT THE REQUEST SOME OF PRUDENTIAL SECURITIES' FORMER AND CURRENT EXECUTIVES AND BROKERS COULD FACE CIVIL ADMINISTRATION CHARGES BY THE SEC FOR FAILING TO SUPERVISE WAYWARD BROKERS ADEQUATELY SMITH BARNEY SHEARSON OUSTED GEORGE BALL A FORMER PRUDENTIALBACHE CHIEF EXECUTIVE AFTER A YEAR AS SENIOR EXECUTIVE VICE PRESIDENT BANK OF BOSTON FORCED OUT THREE TOP EXECUTIVES AND NAMED TWO OTHERS VICE CHAIRMEN OVERHAULING THE TEAM CLOSEST TO CHIEF EXECUTIVE IRA STEPANIAN KENDALL SQUARE'S PRESIDENT SOLD STOCK IN AUGUST VALUED AT 1 MILLION SOON AFTER FORECASTING A STRONG THIRD QUARTER WHICH THE COMPUTER MAKER NOW SAYS ENDED WITH A LOSS ITS STOCK FELL 7875 OR 32 TO 16375 MEDICAL CARE AMERICA REJECTED AN ACQUISITION BID BY SURGICAL CARE AFFILIATES ITS RIVAL IN THE OUTPATIENT SURGERY BUSINESS BUCKING A CONSOLIDATION TREND IN THE HEALTHCARE INDUSTRY A CORPORATE BOARD MUST GIVE FAIR CONSIDERATION TO ALL POTENTIAL BUYERS OF ITS COMPANY OR FACE PAYING DAMAGES TO HOLDERS EVEN IF THE ULTIMATE SALE PRICE IS GREATER THAN THE ASSESSED VALUE DELAWARE'S TOP COURT DECIDED AMERICAN AIR'S TALKS WITH ITS FLIGHT ATTENDANTS FOUNDERED AND THE AMR UNIT SAID IT WILL IMPOSE ITS LATEST OFFER ON THE 21000MEMBER UNION TODAY THE UNION IS STEPPING UP PREPARATIONS FOR A STRIKE THAT WOULD BEGIN BEFORE OR DURING THE WEEK OF THANKSGIVING CONTINENTAL AIRLINES WAS FINED 20000 FOR FAILING TO MAKE A REASONABLE NUMBER OF SEATS AVAILABLE AT PROMOTIONAL FARES DURING A RECENT SALE LOSSES BY LOCAL GOVERNMENTS INVOLVING INTERESTONLY STRIPS A TYPE OF MORTGAGEBACKED SECURITY HAVE SPAWNED A SUIT AND RAISED THE PROSPECT OF A BAN ON SUCH PRODUCTS IN OHIO COMPAQ COMPUTER PLANS TO INTRODUCE 46 COMPUTER MODELS TODAY IN ITS BIGGEST NEWPRODUCT BLITZ EVER AETNA'S NET SURGED 29 IN THE THIRD QUARTER REFLECTING IMPROVEMENTS IN AETNA'S PROPERTY AND CASUALTY UNITS THE INSURANCE COMPANY'S STOCK ROSE 2875 OR 46 TO CLOSE AT 6575 CANADIAN CORPORATE PROFITS ROSE BROADLY IN THE THIRD QUARTER BUT ANALYSTS WARN THAT THE PACE OF THE UPSWING COULD SOON LEVEL OFF AS THE NATION'S ECONOMY GROWS ONLY MODERATELY BONDS LEHMAN BROTHERS TREASURY INDEX 564018 OFF 1244 COMMODITIES OIL 1692 A BARREL OFF 45 CENTS DOW JONES FUTURES INDEX 13162 UP 122 SPOT INDEX 12039 UP 072 DOLLAR 10856 YEN UP 040 16859 MARKS UP 00110 9311010038 931101 FALLEN EBRD LEADER ATTALI REFLECTS ON WHERE HE THINKS HE WENT WRONG BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL PARIS JACQUES ATTALI THE FORMER PRESIDENT AND CREATOR OF THE CONTROVERSIAL EUROPEAN BANK FOR RECONSTRUCTION & DEVELOPMENT CONCEDES HE MAY HAVE MADE ONE MISTAKE THAT MISTAKE HE SAYS WAS TO QUIT BECAUSE NO ONE ASKED ME TO QUIT THAT STATEMENT FROM THE MAN WHOSE NAME BECAME SYNONOMOUS WITH A CULTURE OF EXTRAVAGANCE AT THE LONDONBASED AID BANK SHOWS THE EXTENT TO WHICH FOUR MONTHS AFTER HIS RESIGNATION HE FEELS WRONGED BY THE FORCES THAT PUSHED HIM OUT WITH THE RUMORS THOUGH HE SAYS HE FEELS NO BITTERNESS MR ATTALI SAID HE SIMPLY BECAME FED UP WITH RUMORS DURING THE EVENTS THAT LED TO HIS DEPARTURE SINCE RESIGNING FROM THE EBRD JUNE 25 HE HAS CONTINUED TO WRITE BOOKS HE HAS TWO DUE OUT NEXT YEAR ONE OF WHICH WILL DETAIL HIS VERSION OF THE BANK'S CREATION SPEAKING IN HIS FIRST INTERVIEW WITH THE ENGLISHLANGUAGE PRESS SINCE LEAVING THE EBRD MR ATTALI SAID HE PLANS TO CREATE A CONSULTING AND INVESTMENTBANKING FIRM AT THE BEGINNING OF 1994 THAT WILL ADVISE GOVERNMENTS AND CORPORATIONS ON RELATIONS WITH ECONOMIES IN TRANSITION THIS TIME IN LATIN AMERICA AND HE WARNED THAT RUSSIA OVER THE NEXT DECADE MAY COLLAPSE INTO 20 FIEFDOMS RULED BY WARLORDS HE SAID HE DIDN'T WANT TO COMMENT IN DETAIL ABOUT EVERY ALLEGATION OF OVERSPENDING LEVELED AT HIM WHILE HE WAS AT THE BANK ASKED IF IN RETROSPECT HE THOUGHT HE WAS EXTRAVAGANT HE SAID I DIDN'T SEE IT I'M VERY PROUD OF CREATING THE BANK FOR ME IT'S OVER SAID MR ATTALI WHO IS 50 YEARS OLD TODAY MY LIFE IS AHEAD IN A CURIOUS PARALLEL TO MR ATTALI'S FATE HIS EQUALLY HIGHFLYING IDENTICAL TWIN BROTHER BERNARD ALSO HAS FALLEN FROM GRACE BERNARD ATTALI WHO WAS CHAIRMAN OF THE FRENCH STATEOWNED AIRLINE RESIGNED IN A DRAMATIC GESTURE SUNDAY OCT 24 AFTER GOVERNMENT MINISTERS CAVED IN TO STRIKING AIRLINE WORKERS' DEMANDS OVERRIDING MR ATTALI'S TOUGH JOBCUTTING PROGRAM LOOKING RELAXED AND NATTILY DRESSED HERE AT HIS HOME IN FRANCE WHERE HE KEEPS A COLLECTION OF ANCIENT HOURGLASSES JACQUES ATTALI SAID SOMETIMES WHEN HE REFLECTS ON HIS QUITTING THE EBRD I THINK IT WOULD HAVE BEEN BETTER TO TAKE TWO WEEKS' VACATION BUT I WAS FED UP WITH RUMORS AND THE IMPOSSIBILITY OF IMPLEMENTING A PLAN FOR REFORM OF THE BANK'S STRUCTURE HE SAID HIS PLAN WHICH INVOLVED MERGING MERCHANT AND DEVELOPMENT BANKING IS NOW BEING IMPLEMENTED BY HIS SUCCESSOR JACQUES DE LAROSIERE THE DRUMBEAT OF NEGATIVE STORIES BEGAN IN APRIL AT THE BANK'S ANNUAL MEETING WHICH WAS SET UP WITH WESTERN GOVERNMENT MONEY TO AID EASTERN EUROPE AND THE FORMER SOVIET UNION THEY FIRST LAMBASTED MR ATTALI'S BANK FOR SPENDING TWICE AS MUCH ON ITS HEADQUARTERS BUILDING AS IT HAD DISBURSED TO ITS CLIENT COUNTRIES AND DETAILED SUCH TOUCHES AS SPECIAL MARBLE IN THE LOBBIES SPECIAL CARPETS AND DESIGNER FURNITURE BANK OFFICIALS DEFENDED THEIR SPENDING AS WITHIN THE BUDGET APPROVED BY THE 57 MEMBER COUNTRIES THE SLOW DISBURSEMENTS WERE ATTRIBUTED TO BUREAUCRATIC FOOTDRAGGING IN THE CLIENT COUNTRIES AND DEFENDED AS PRUDENT GIVEN THAT CORRUPTION IS ENDEMIC TO ECONOMIC TRANSFORMATION BUT DETAILS OF MR ATTALI'S PRIVATE JET FLIGHTS AND RUMORS OF OFFSHORE BANK ACCOUNTS AND THE LIKE CONTINUED TO DOG HIM CREATING AN IMAGE OF A BANK PRESIDENT WHO CARED MORE FOR THE GOOD LIFE THAN PEOPLE IN NEED OF MONEY AND HELP FROM THE WEST THE BANK BECAME A HOTBED OF RUMOR AND INTRIGUE WITH EXECUTIVES TAKING SIDES BETWEEN MR ATTALI AND THE NO 2 IN CHARGE RONALD FREEMAN THERE WERE TWO STORIES WHICH REALLY UPSET ME SAID MR ATTALI THE FIRST WAS THAT HE ASKED THE FRENCH GOVERNMENT FOR FIVE MILLION FRENCH FRANCS CURRENTLY VALUED AT 854250 TO BUY HIM AN A PARIS I DENIED IT THE MINISTRY OF FOREIGN AFFAIRS DENIED IT YET LE POINT HE SAID PRINTED IT I HAVE SUED THE MAGAZINE FOR LIBEL HE SAID SECOND WAS A STORY ON THE FRONT PAGE OF THE FINANCIAL TIMES THE DAY OF HIS RESIGNATION THAT SAID THAT IN 1992 HE HAD BEEN REIMBURSED TWICE FOR A PLANE TICKET TO TOKYOONCE BY THE BANK AND AGAIN BY A JAPANESE NEWSPAPER AS PART OF A CONTRACT WITH THE NEWSPAPER SEPARATELY ARRANGED BY HIS LITERARY AGENT IN PARIS BEFORE THE BANK BEGAN OPERATING HE SAID HE RECEIVED TWO PREPAID RETURN TICKETS TO TOKYO WHEN HE WAS SCHEDULED UNDER THE CONTRACT TO MAKE A SPEECH IN 1992 HE COMBINED A SPEECH TRIP WITH BANK BUSINESS CHARGING THE BANK FOR THE TRIP INSTEAD OF USING THE NEWSPAPER TICKETS WHEN HE REALIZED HE COULD HAVE USED A JAPANESE NEWSPAPER TICKET INSTEAD HE CASHED IN ONE JAPANESE NEWSPAPER TICKET AND REIMBURSED THE BANK THE AIRFARE WAS PAID FOR UNDER HIS SPEECHMAKING CONTRACT THE SECOND JAPANESE NEWSPAPER TICKET WAS NEVER USED HE SAID BUT THESE STORIES WERE JUST PART OF A SLEW OF RUMORS UNDER SUCH CIRCUMSTANCES MR ATTALI SAID IT BECAME IMPOSSIBLE TO GET THE TRUTH OUT QUITTING UNDER SUCH A CALUMNY IS GIVING VICTORY TO THE LIES HE SAID BUT WITH HIS FAMILY IN PARIS WHILE HE LIVED IN A LONDON HOTEL AND WITH THE BANK CONTINUING TO SUFFER RESISTING NEEDED SOMEONE TOUGHER THAN ME HE SAID A REAL POLITICIAN WHICH I'M NOT HE REMAINS PUZZLED BUT HAS SOME CLUES ABOUT THE NEGATIVE PUBLICITY THAT FORCED HIM OUT TO CREATE SOMETHING LIKE THE BANK YOU HAVE TO PILE UP YOUR ENEMIES AND I CREATED FROM SCRATCH ALMOST ALONE AN INTERNATIONAL INSTITUTION HE SAID I HAD ENEMIES IN BRUSSELS IN WASHINGTON SOME WHO KNEW HIM SAID HIS ARROGANT ATTITUDE BROUGHT HIS DOWNFALL HE SAID HE ISN'T SO MUCH ARROGANT AS IMPATIENT I DON'T LIKE TO LOSE TIME WITH PEOPLE HE SAID AND IT'S TRUE I CREATE ENEMIES AFTER HE QUIT HE TOOK A HOLIDAY WITH HIS CHILDREN AND WORKED ON TWO BOOKS ONE IS A NOVEL AND THE OTHER IS HIS VISION OF EUROPE A THIRD OF THE LATTER WILL BE DEVOTED TO THE STORY OF THE EBRD'S CREATION HE SAID HE IS A MEMBER OF FRANCE'S CONSEIL D'ETAT A HIGH JUDICIAL BODY IN FRANCE BUT HE HASN'T BEEN ASSIGNED TO A SPECIALITY OF THE LAW BECAUSE HE IS CONSIDERING SETTING UP A CONSULTING FIRM WITH OTHER INDIVIDUALS I AM VERY WORRIED ABOUT WHAT HAPPENS TO EASTERN EUROPE MR ATTALI SAID IN TERMS OF ITS ACCESS TO WESTERN EUROPEAN MARKETS AND INSTITUTIONS HE SAID HE HAD HOPED THAT THE EUROPEAN COMMUNITY COULD CREATE SOMETHING SIMILAR TO THE NORTH AMERICAN FREE TRADE AGREEMENT WITH THE EAST BUT THE COMMUNITY SEEMS TOO CLOSEMINDED AS FOR RUSSIA HE SAID HE SEES THREE SCENARIOS THAT YELTSIN WILL PUSH THROUGH DEMOCRATIC REFORMS THAT HE WON'T BUT WILL MAINTAIN A MARKET ECONOMY AND BECOME A AN AUTOCRAT A RUSSIAN PINOCHET OR THAT RUSSIA WILL SLOWLY SPLIT INTO REGIONS HE SAID HE THOUGHT THE LATTER MOST LIKELY BECAUSE MOSCOW HAS NO TAX BASE WITH THE REGIONS WHEN YOU DON'T HAVE A TAX BASE YOU DON'T HAVE A NATION HE SAID HE THOUGHT IT LIKELY THAT ARMY GENERALS WOULD SPLIT THE COUNTRY AMONG THEMSELVES AND FINANCE THEIR FIEFDOMS BY SELLING ARMS TO THE THIRD WORLD THERE IS NO RISK OF A WAR IN RUSSIA HE SAID BUT THERE IS A RISK OF AN UNMANAGED FIRST ARMY OF THE WORLD BECOMING A CONSULTING COMPANY FOR THIRD WORLD COUNTRIES 9311010037 931101 BUSINESS BRIEF PAGES INC ANNUAL RESULTS TO FALL BELOW INSIDE AND ANALYST FORECASTS PAGES INC CITING SELLING RESISTANCE IN ITS SERVICE RECOGNITION AWARD UNIT AND GREATER COSTS ASSOCIATED WITH A BUSINESS ALLIANCE SAID REVENUE FOR THE YEAR WILL BE 2 MILLION TO 3 MILLION BELOW THE COMPANY'S FORECAST OF 80 MILLION IT SAID THAT WILL RESULT IN PERSHARE EARNINGS BELOW THE 43 CENTS TO 48 CENTS A SHARE FORECAST BY SOME ANALYSTS THE DUBLIN OHIO COMPANY THIS YEAR ANNOUNCED A BUSINESS ALLIANCE WITH LG BALFOUR A MAKER OF SERVICE RECOGNITION AWARD JEWELRY WHICH IS A UNIT OF TOWN & COUNTRY CORP A PAGES SPOKESMAN SAID IMPLEMENTATION OF THE ALLIANCE IS PROVING MORE EXPENSIVE THAN EXPECTED LAST YEAR A 10MONTH FISCAL YEAR ENDING DEC 31 THE COMPANY POSTED NET INCOME OF 998000 OR 19 CENTS A SHARE REFLECTING A NET TAX BENEFIT PROVISION OF 700000 REVENUE WAS 445 MILLION THE COMPANY IN DECEMBER CHANGED ITS FISCAL YEAR TO MATCH THE CALENDAR YEAR PAGES PUBLISHES LEISURE BOOKS AND CHILDREN'S LITERATURE AS WELL AS INCENTIVE AND SERVICE RECOGNITION AWARDS PROGRAMS 9311010036 931101 BUSINESS BRIEF KAWASAKI STEEL CORP SECURITIESVALUATION LOSSES AMOUNT TO 1921 MILLION KAWASAKI STEEL CORP REPORTED ITS LOSSES ON SECURITIES VALUATIONS AMOUNTED TO 2079 BILLION YEN 1921 MILLION IN THE FIRST HALF ENDED SEPT 30 A FIGURE FAR LARGER THAN THE COMPANY'S NET INCOME OF 143 MILLION YEN IN THE PRECEDING FULL YEAR BUT THE COMPANY SAID THOSE LOSSES WERE HEAVILY OUTWEIGHED BY INCOME FROM SECURITIES WHICH AMOUNTED TO 19109 BILLION YEN IN THE RECENT YEAR TO LEAVE THE COMPANY IN THE BLACK FOR SECURITIES INVESTMENTS BY 17029 BILLION YEN UNDER TOKYO STOCK EXCHANGE RULES COMPANIES MUST ANNOUNCE SECURITIESVALUATION LOSSES WHEN THEY TOTAL 30 OR MORE OF THE PREVIOUS YEAR'S PRETAX PROFIT OR NET INCOME FIGURES THE SECURITIESVALUATION LOSSES FOR THE RECENT HALF ALSO WERE MUCH LARGER THAN THE PRIOR YEAR'S 754 BILLION YEN PRETAX PROFIT THEY AMOUNTED TO 11 OF THE PRIOR YEAR'S OVERALL ASSETS OF 1944 TRILLION YEN 9311010035 931101 TECHNOLOGY BRIEF AMDAHL CORP CONCERN REPORTS BIG LOSS SUSPENDS QUARTERLY DIVIDEND AMDAHL CORP SHOWING JUST HOW BRUTAL THE MAINFRAMECOMPUTER BUSINESS HAS BECOME AS USERS SHIFT TO SMALLER MACHINES POSTED ITS BIGGEST QUARTERLY LOSS WHICH INCLUDED A 235 MILLION PRETAX RESTRUCTURING CHARGE AMDAHL SAID THAT AS PART OF THE RESTRUCTURING IT WILL CUT ABOUT 1800 EMPLOYEES OF ITS ABOUT 7400 WORK FORCE IT ALSO SAID IT SUSPENDED ITS QUARTERLY DIVIDEND THE MAINFRAME COMPUTER MAKER SAID ITS THIRDQUARTER LOSS WAS 2757 MILLION OR 241 A SHARE COMPARED WITH A LOSS OF 308 MILLION OR 27 CENTS A SHARE A YEAR EARLIER REVENUE FELL 33 TO 3937 MILLION AMDAHL WARNED INVESTORS IN MIDOCTOBER THAT IT EXPECTED TO REPORT A LARGE LOSS AND SIGNIFICANT CHARGES TO CUT EMPLOYMENT FACTORY CAPACITY AND CERTAIN PRODUCTDEVELOPMENT PROGRAMS THE COSTS OF THE STAFF AND FACTORYCAPACITY CUTS ARE INCLUDED IN THE CHARGES AMDAHL'S STOCK CLOSED AT 4625 UP 125 CENTS ON THE AMERICAN STOCK EXCHANGE FRIDAY THE RESULTS WERE ANNOUNCED AFTER THE CLOSE OF TRADING 9311010034 931101 BUSINESS BRIEF GENERAL MOTORS CORP HUGHES UNIT SETTLES TALKS TO BUILD SATELLITE FOR JAPAN HUGHES AIRCRAFT CO SAID IT CONCLUDED NEGOTIATIONS WITH JAPAN SATELLITE SYSTEMS INC TO BUILD AND LAUNCH A HIGHPOWER COMMUNICATIONS SATELLITE THAT WOULD RELAY VOICE DATA AND TELEVISION SIGNALS TO JAPAN WITH COVERAGE EXTENDING TO INDIA AUSTRALIA AND HAWAII TERMS WEREN'T DISCLOSED BUT SUCH SATELLITES ARE KNOWN TO COST FROM 60 MILLION TO MORE THAN 100 MILLION DEPENDING ON THE SIZE OF THE PAYLOAD AND OTHER FACTORS IN MAY 1992 HUGHES ANNOUNCED IT HAD WON THE RIGHT TO NEGOTIATE TO BUILD TWO OF THE HS 601 SATELLITES BUT SUBSEQUENT EVENTS INTERVENED INCLUDING THE MERGER LAST AUGUST BETWEEN JAPAN COMMUNICATIONS SATELLITE CO AND SATELLITE JAPAN CORP BOTH FINANCIALLY TROUBLED THE NEW COMPANY JAPAN SATELLITE SYSTEMS IS OWNED BY ITOCHU CORP MITSUI & CO SUMITOMO CORP NISSHO IWAI CORP AND SEVERAL OTHERS EACH WITH A SMALL STAKE AS PART OF THE AGREEMENT HUGHES'S SPACE AND COMMUNICATIONS UNIT HAS CONTRACTED WITH GENERAL DYNAMICS CORP FOR LAUNCH ABOARD AN ATLAS 2AS ROCKET IN AUGUST 1995 HUGHES BASED IN LOS ANGELES IS A UNIT OF GENERAL MOTORS CORP 9311010033 931101 FOREIGN EXCHANGE DOLLAR STRENGTHENS ON TECHNICAL RALLY TRADERS ARE BULLISH AWAITING JOB DATA BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK A FASTBREAK THROUGH TOUGH TECHNICAL LEVELS BROUGHT THE DOLLAR HIGHER FRIDAY AND TRADERS ARE BULLISH ON THE US CURRENCY FOR THIS WEEK WHEN THE CLOSELY WATCHED US NONFARMPAYROLL DATA ARE DUE FOR RELEASE LATE IN NEW YORK ON FRIDAY THE DOLLAR WAS QUOTED AT 16859 MARKS UP FROM 16749 MARKS LATE THURSDAY THE US CURRENCY WAS CHANGING HANDS AT 10856 YEN UP FROM 10816 YEN STERLING WAS TRADING AT 14815 DOWN FROM 14880 ABOUT NOON ON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10868 YEN AND AT 16880 MARKS FRIDAY'S TRADING WAS UNEVENTFUL UNTIL THE FINAL MOMENTS OF THE EUROPEAN AFTERNOON WHEN THE DOLLAR MANAGED TO OVERCOME SELLING PRESSURE AT ABOUT 16720 MARKS SWITCHING TACTICS TRADERS TOOK THE US CURRENCY HIGHER BY THE NEW YORK AFTERNOON THE DOLLAR BROKE 16800 MARKS A LEVEL THAT HAD OFFERED TOUGH RESISTANCE EARLIER IN THE DAY DESPITE SOME MILDLY BULLISH US ECONOMIC DATA THE DOLLAR THEN SHOT UP ON STOPLOSS BUYING TO END AT ITS INTRADAY HIGH EUROPEAN CENTRAL BANKS WHICH WERE RUMORED TO BE AMONG THE HEAVY DOLLAR SELLERS ON THURSDAY MIGHT NOT HAVE BEEN ACTIVE IN ENDOFTHEWEEK NEW YORK TRADING SOME MARKET WATCHERS SPECULATED THIN MARKET CONDITIONS WERE ALSO A FACTOR FRIDAY WITH THE LACK OF LIQUIDITY EXAGGERATING CURRENCY MOVEMENTS AT THE SAME TIME THE MARKET SEEMED EAGER TO GET LONG DOLLAR POSITIONS FOR THE NEW MONTH ESPECIALLY AHEAD OF A THREEDAY WEEKEND IN MANY EUROPEAN MARKETS BELGIUM FRANCE ITALY SPAIN AND PORTUGAL HAVE HOLIDAYS TODAY BEHIND THAT BULLISHNESS THEY SAID WAS THE STRONG CHARACTER OF RECENT US DATA AND THE ANTICIPATION OF MORE GOOD NEWS FROM THIS WEEK'S ECONOMIC DATA WHICH INCLUDE SEPTEMBER LEADING ECONOMIC INDICATORS AND FACTORY ORDERS AND OCTOBER NONFARM PAYROLLS FRIDAY ALSO SAW THE RELEASE OF DATA ON US PERSONAL INCOME WHICH ROSE AN EXPECTED 01 IN SEPTEMBER WHILE PERSONAL SPENDING WAS UP A SLIGHTLY WEAKERTHANEXPECTED 03 MEANWHILE THE UNIVERSITY OF MICHIGAN SAID ITS CONSUMER CONFIDENCE INDEX WAS AT 827 UP FROM 779IN SEPTEMBER WHILE THE CHICAGO PURCHASING MANAGERS' INDEX WAS REPORTED AT 570 UP STRONGLY FROM SEPTEMBER'S 545 THOSE FIGURES WERE ENOUGH TO SPARK THE DOLLAR'S FIRST RUN AT 16800 MARKS BUT DIDN'T HOLD THE MARKET'S INTEREST FOR VERY LONG INSTEAD TRADERS SAID THE MARKET TOOK THE NUMBERS AS CONFIRMATION OF ITS BELIEF IN STEADILY BLOOMING US RECOVERY AND SPENT THE DAY SWINGING BETWEEN TECHNICAL SUPPORT LEVELS LONGRANGE DOLLAR BULLISHNESS IS STILL SEEN AS THE FORMULA FOR SUCCESS THE PEOPLE THINKING LONGTERM ARE DOING WELL SAID BOB JOHNSON AN INSTITUTIONAL TRADER AT FIRST CHICAGO CORP THE GUYS WHO ARE TRYING TO PICK TOPS ARE GETTING ALL CHOPPED UP IN EUROPE THE FRENCH FRANC SAGGED FRIDAY WITH THE MARK CLIMBING TO 35030 FRANCS FROM 34976 FRANCS LATE THURSDAY NUMBERS RELEASED FRIDAY SHOWING FRENCH UNEMPLOYMENT AT ANOTHER POSTWAR RECORD HIGH OF 118 DRAGGED ON THE CURRENCY THE POUND MEANWHILE HELD ITS GROUND AGAINST THE DOLLAR AND MARK FOR MOST OF THE DAY BUT DROPPED OFF LATE IN NEW YORK ON THE STRENGTH OF THE DOLLAR JUGGERNAUT BUT AS LONG AS THE STERLING HOLDS ABOVE 14800 IT STANDS A CHANCE OF MOVING UP TO 15000 THE POUND DREW GOOD BUYING INTEREST FROM FUND MANAGERS FRIDAY 9311010032 931101 A COUP IN FLORIDA HOW A HAITIAN PAINTER SURVIVED TO BECOME THE TOAST OF NAPLES ERNEST BELIZAIRE IS TAKEN UP BY TWO ENERGETIC LADIES WHO MAKE HIM A CAUSE A SHOW IN THE DOCTOR'S OFFICE BY ERIC MORGENTHALER STAFF REPORTER OF THE WALL STREET JOURNAL LATE LAST YEAR IN NAPLES FLA TWO MIDDLEAGED COUPLES WERE HAVING DINNER BEFORE A PHILHARMONIC CONCERT HAITI WAS IN THE NEWS AND OVER DESSERT THE FOUR BEGAN TALKING ABOUT HOW THEY MIGHT RESPOND TO THE TROUBLES THERE WE KNEW WE COULDN'T HELP THE HAITIAN PEOPLE SAYS JUDY SULLIVAN ONE OF THE WOMEN BUT WE COULD CERTAINLY HELP ONE PERSON IMMOKALEE FLA WEARING ONLY A PAIR OF FADED SHORTS ERNEST BELIZAIRE CROUCHES ON THE FLOOR OF HIS TRAILER AND BEGINS TO PAINT A SCENE FROM HIS HOMELAND ON THE WALL ABOVE HIM A CALENDAR READS ECHOS D'HAITI WWCN 770 AM HE SQUEEZES TUBES OF BRILLIANT COLORS MAGENTA LIME LEMON AND THE CANVAS SOON BUSTLES WITH THE MOTION OF A HAITIAN MARKET THERE ARE BLACK WOMEN IN BRIGHT HEAD SCARVES AMID A SEA OF STRAW BASKETS THERE ARE GREEN BANANAS AND STALKS OF SUGAR CANE AND PILES OF MELONS AND APPLES THERE ARE FABRICS WITH STARS ON THEM AND FABRICS WITH CARROTS THE EXUBERANT SCENE IS A WORLD AWAY FROM THE HARD LIFE OF THE ARTIST WHO FLED HAITI LAST YEAR FEARING PERSECUTION FOR HIS ANTIGOVERNMENT WALL MURALS AND NOW FINDS SEASONAL WORK IN A VEGETABLEPACKING PLANT IN THIS ROUGHEDGED TOWN IT IS EVEN FURTHER REMOVED FROM THE LIFE THAT IS LED LESS THAN AN HOUR'S DRIVE WEST OF HERE IN THE PALMY RESORT TOWN OF NAPLES WHICH CLAIMS MORE COUNTRY CLUBS AND HOLES OF GOLF PER CAPITA THAN ANY PLACE ELSE IN THE US YET IN A SLEEK GALLERY WINDOW IN THE FASHIONABLE OLDE NAPLES NEIGHBORHOOD THERE HANGS A VIBRANT MARKET SCENE MUCH LIKE THE ONE BEING PAINTED HERE BY A NEWLY DISCOVERED ARTIST NAMED ERNEST BELIZAIRE UNTIL RECENTLY HIS WORK HUNG MAINLY ON THE WALLS OF A MIGRANTWORKER CENTER IN IMMOKALEE HOW IT GOT TO NAPLES IS A STORY INDEED HAITI OF COURSE IS IN THE NEWS ONCE AGAIN THE REASONS AS USUAL ARE SAD ONES LAST MONTH SAW THE COLLAPSE OF A UNITED NATIONSBROKERED PLAN FOR THE RETURN TO POWER OCT 30 OF JEANBERTRAND ARISTIDE WHO WAS OVERTHROWN AS PRESIDENT TWO YEARS AGO IN A MILITARY COUP THE UN RESPONDED BY REIMPOSING AN EMBARGO ON OIL AND ARMS DESTINED FOR HAITI TO PRESSURE THE REGIME THERE AND THE CLINTON ADMINISTRATION SENT WARSHIPS TO HELP ENFORCE THE MEASURE IN MANY WAYS TODAY'S TROUBLES ARE SIMPLY A NEW TWIST IN AN OLD TRAGEDY FOR HAITI LONG HAS BEEN ONE OF THE MOST DESPERATE PLACES ON EARTH IT IS THE POOREST COUNTRY IN THE HEMISPHERE AND ONE OF THE WORSTOFF POLITICALLY THANKS TO THE LEGACY OF THE 29YEAR REIGN OF THE DUVALIER FAMILY THE YEARS OF TURMOIL HAVE CAUSED TENS OF THOUSANDS OF HAITIANS TO FLEE OFTEN IN FLIMSY BOATS BOUND FOR FLORIDA AND CREATED LEGIONS OF EXILES SUCH AS ERNEST BELIZAIRE A LOT OF PEOPLE SAY THAT INSTEAD OF DYING AT THE MILITARY'S HAND THEY PREFER TO DIE IN THE SEA SAYS THE 37YEAROLD MR BELIZAIRE A LEAN GENTLE MAN WHO SPEAKS IN THE HAITIANCREOLE PATOIS AS HIS ENGLISH IS WEAK THE LIFE OF THE ANIMALS IS BETTER THAN THE LIFE OF THE HAITIAN PEOPLE HE ADDS THE MILITARY THERE KILL PEOPLE AS A GAME HELLO NANCY LASCHEID SAYS CHEERFULLY HOW ARE YOU HOW ARE YOU DOING MRS LASCHEID AND JUDY SULLIVAN IN STYLISHLY SIMPLE SKIRTS AND BLOUSES WALK QUICKLY UP THE TRAILER'S CONCRETEBLOCK STEP PAST THE REFRIGERATOR ON THE UNPAINTED WOOD PORCH THROUGH THE SCREEN DOOR HELD OPEN BY A VINYLBACKED CHAIR AND INTO THE WORLD OF ERNEST BELIZAIRE THE ARTIST SMILES AS THE WOMEN SPOT WHAT THEY HAVE COME TO SEE STACKED AGAINST A MAYTAG REFRIGERATOR BOX AT THE REAR OF HIS CLUTTERED HOME A CACHE OF NEW PAINTINGS TO TAKE BACK TO THE GALLERY IN NAPLES GOOD VERY GOOD MRS LASCHEID SAYS LOOKING AT ONE SHE NOTES THAT SEVERAL CANVASES HAVE SMUDGED BORDERS ERNEST ONE OF THE PROBLEMS IS KEEPING THEM CLEAN SHE SAYS PEOPLE AREN'T GOING TO BUY THEM IF THEY'RE NOT CLEAN HE SMILES AND NODS AND HE PICKS UP A BRUSH AND BEGINS TO WHITE OUT THE SMUDGES ART IS THE DRIVING FORCE OF ERNEST BELIZAIRE'S ODYSSEY IN HAITI MR BELIZAIRE RAN A SMALL BAKERY IN A PORTAUPRINCE SLUM BUT HIS REAL PASSION WAS PAINTING BECAUSE HE BELIEVED IN THE REV ARISTIDE THE ROMAN CATHOLIC PRIEST WHO IN 1990 WAS RUNNING FOR PRESIDENT IN HAITI'S FIRST FREE ELECTION HE PAINTED OF POLITICS HE WOULD EMBELLISH OUTDOOR WALLS IN HIS NEIGHBORHOOD WITH FIGHTING ROOSTERS FATHER ARISTIDE'S SYMBOL AND WITH FLOWERS ANOTHER SYMBOL OF THE CAMPAIGN IN ONE MURAL HE LAMPOONED FORMER DICTATOR JEANCLAUDE DUVALIER AS MICKEY MOUSE WHEN FATHER ARISTIDE WON THE ELECTION IN A LANDSLIDE MR BELIZAIRE'S ART WAS IN TUNE WITH THE TIMES BUT LESS THAN A YEAR LATER ON SEPT 30 1991 PRESIDENT ARISTIDE WAS OVERTHROWN AND MR BELIZAIRE LIKE MANY ARISTIDE SUPPORTERS WAS IN TROUBLE ONE NIGHT IN MIDNOVEMBER MR BELIZAIRE SAYS GOVERNMENT THUGS VANDALIZED HIS BAKERY THEN STORMED HIS HOUSE AND DEMANDED HE COME OUT HIS WIFE PERSUADED THEM HE WASN'T HOME THOUGH HE WAS THEY FIRED GUNS IN THE YARD FOR ABOUT 10 MINUTES HE SAYS AND DEPARTED FEARING FOR HIS LIFE MR BELIZAIRE FLED THE FOLLOWING NIGHT LEAVING HIS WIFE AND CHILDREN WITH RELATIVES HE SAYS HE HAS EIGHT CHILDREN BY FOUR WOMEN INCLUDING HIS WIFE HE TALKED HIS WAY ONTO A VERY VERY VERY SMALL BOAT OVERFLOWING WITH HAITIANS TRYING TO ESCAPE THE COUNTRY HE SAYS HE DIDN'T EVEN KNOW WHERE THE BOAT WAS GOING ANYWHERE WAS BETTER THAN HAITI AFTER TWO MISERABLE NIGHTS AT SEA THE BOAT WAS INTERCEPTED BY THE US COAST GUARD AND ITS PASSENGERS TAKEN TO THE US NAVAL BASE AT GUANTANAMO CUBA WHERE HAITIAN BOAT PEOPLE WERE BEING CORRALLED MR BELIZAIRE FRIGHTENED AND WEARY FLUNKED HIS INTERVIEW WITH US AUTHORITIES WHO RULED HE DIDN'T HAVE A CREDIBLE CLAIM FOR POLITICAL ASYLUM AFTER SEVERAL MONTHS AT GUANTANAMO HE WAS RETURNED TO HAITI ON THE FIRST COAST GUARD BOAT REPATRIATING REFUGEES FEARING TROUBLE HE IMMEDIATELY WENT INTO HIDING I DIDN'T EVEN WAIT FOR THE RED CROSS BUS HE TOLD ANNEMARIE O'CONNOR A REPORTER FOR THE COX NEWSPAPERS CHAIN WHO INTERVIEWED HIM AT THE HOME OF RELATIVES OUTSIDE PORTAUPRINCE I RAN FORMER NEIGHBORS TOLD MS O'CONNOR THAT POLICE WERE LOOKING FOR MR BELIZAIRE AND THAT HE SHOULDN'T COME HOME MS O'CONNOR WROTE AN ARTICLE ABOUT THE ARTIST'S PLIGHT AND IT APPEARED ON THE FRONT PAGE OF THE PALM BEACH POST WITH A COLOR PICTURE OF MR BELIZAIRE IN HIDING HE THINKS IT STIRRED THE INTEREST OF US AUTHORITIES IN A FEW WEEKS HE SAYS A US CONSULAR OFFICIAL RECOMMENDED HE GET A VISA BUT BEFORE THE VISA CAME THROUGH MR BELIZAIRE GOT WORD THAT POLICE THUGS HAD THREATENED TO KNOCK MY TEETH OUT HE DECIDED NOT TO WAIT FOR THE VISA HE FOUND ANOTHER BOAT THAT VESSEL ALSO WAS INTERCEPTED AND THE PASSENGERS TAKEN TO GUANTANAMO BUT THIS TIME MR BELIZAIRE WAS GRANTED ENTRY TO THE US ON JUNE 19 OF LAST YEAR ABOUT A MONTH AFTER ARRIVING AT GUANTANAMO HE WAS FLOWN TO MIAMI SOON AFTER HE JOURNEYED TO THIS LONELY TOWN IN CENTRAL SOUTH FLORIDA WHERE HE KNEW OTHER HAITIANS HOW ARE THINGS GOING ASKS MRS LASCHEID AN ENERGETIC WOMAN WITH SHORT WHITE HAIR PROBLEM PROBLEM SAYS MR BELIZAIRE SHAKING HIS HEAD SADLY THE BIG SMILE THAT IS HIS MOST PROMINENT FEATURE IS SUDDENLY GONE WHAT PROBLEMS SHE ASKS ON HER LAP IS A WHITE LOOSELEAF NOTEBOOK THAT ON ITS SPINE SAYS ERNEST BELIZAIRE IN HER SWEEPING HANDWRITING MONEY HE ANSWERS HIS EYES ARE DOWNCAST MONEY IS THE PROBLEM HE NODS MINUTES EARLIER MRS SULLIVAN HAD GIVEN HIM A 100 CHECK FROM THE SALE OF ONE OF HIS PAINTINGS TO AN OUTOFSTATE FRIEND OF HERS BUT LITTLE IS SELLING AT THE GALLERY IN NAPLES FOR IT IS A SEASONAL TOWN WHERE MANY MIDWESTERNERS SPEND THEIR WINTERS UNTIL THE SEASON ARRIVES THERE IS LITTLE DEMAND THERE FOR MUCH OF ANYTHING IMMOKALEE ALSO HAS A SEASONAL ECONOMY IT IS BASED ON FARMING IT ATTRACTS MANY IMMIGRANTS MEXICANS GUATEMALANS SALVADORANS HONDURANS HAITIANS WHO FIND SEASONAL WORK IN THE FIELDS OR THE PACKING PLANTS THE SEASON USUALLY ENDS IN MAY ERNEST BELIZAIRE ARRIVED IN JUNE WHEN SOMEONE COMES TO IMMOKALEE IN JUNE WE MIGHT AS WELL SEND THEM AWAY BECAUSE THERE'S NO WORK HERE SAYS JOHN WITCHGER WHO AS DIRECTOR OF THE CATHOLIC CHURCH'S GUADALUPE SOCIAL SERVICES RUNS ONE OF THE MAJOR AGENCIES ASSISTING POOR FARM WORKERS SOON AFTER ARRIVING HERE MR BELIZAIRE LIKE SOME 300 OTHER GUANTANAMO HAITIANS SHOWED UP AT THE GUADALUPE OFFICE SEEKING HELP HE DIDN'T HAVE SUPPLIES SO MR WITCHGER BOUGHT HIM PAINTS BRUSHES AND CANVASES AND SUGGESTED HE USE A ROOM DOWN THE HALL AS A STUDIO THE ARTIST SOON WAS TURNING OUT VIBRANT TROPICAL PAINTINGS MR WITCHGER SENT A FEW TO CHURCH GROUPS AND WHEN THEY SOLD MR BELIZAIRE GOT THE PROCEEDS WHICH AMOUNTED TO SEVERAL HUNDRED DOLLARS ENTER JUDY SULLIVAN A FORMER CHEMISTRY TEACHER AND MOTHER OF THREE SONS THE YOUNGEST TURNS 19 THIS MONTH SHE IS CHAIRWOMAN OF THE ADVISORY BOARD OF CATHOLIC SOCIAL SERVICES FOR COLLIER COUNTY A CHURCH AGENCY ONCE A MONTH SHE DRIVES FROM NAPLES TO IMMOKALEE TO CHECK ON HER ORGANIZATION'S IMMIGRATION OFFICE HERE IT IS IN THE SAME BUILDING AS MR WITCHGER'S AGENCY AND ACROSS THE HALL FROM THE ROOM WHERE MR BELIZAIRE WAS PAINTING WHEN I WALKED BY I SAW THIS BLAZE OF COLOR SHE RECALLS AND I SAID WHAT DO WE HAVE HERE' I WALKED IN AND BESIDE THE PAINTINGS WHICH WERE SO FANTASTIC THERE WAS ERNEST WITH THIS INCREDIBLE SMILE MRS SULLIVAN PURCHASED A PAINTING FOR 50 ALL SHE HAD IN HER PURSE BACK IN NAPLES SHE DONATED IT TO A CHARITY AUCTION GIVEN BY THE COUNTY MEDICAL SOCIETY'S AUXILIARY SHE IS A MEMBER HER HUSBAND JOSEPH IS A GENERAL PRACTITIONER IT WAS THE HIT OF THE AUCTION MRS SULLIVAN SAYS AND SOLD FOR ABOUT 200 THEN CAME THE PRECONCERT DINNER WHERE THE SULLIVANS AND THEIR FRIENDS THE LASCHEIDS WILLIAM LASCHEID IS A DERMATOLOGIST DISCUSSED WHAT THEY COULD DO ABOUT THE TURMOIL IN HAITI THEY DECIDED TO HELP ONE HAITIAN ONE OF THEM SUGGESTED THE ARTIST FROM IMMOKALEE IT WAS JUST A ROLL OF THE DICE SAYS MRS LASCHEID WHO ALSO VISITS IMMOKALEE REGULARLY FOR VOLUNTEER WORK WE WANTED TO DO SOMETHING FOR A PERSON IT HAPPENED TO BE ERNEST THE WOMEN BOTH SEASONED ORGANIZERS TOOK CHARGE WITH HURRICANE FORCE THEY TRAVELED TO IMMOKALEE SEARCHED OUT AND CHECKED OUT MR BELIZAIRE AND BEGAN THINKING OF WAYS TO HELP HIM EVENTUALLY THEY DECIDED TO GIVE HIM A SHOW IN NAPLES THEY WOULD HAVE IT AFTER HOURS IN DR LASCHEID'S OFFICE WHICH CAN HANDLE A CROWD THE COST WOULD BE SHARED BY THE LASCHEIDS AND THE SULLIVANS PLUS DR LASCHEID'S ASSOCIATEDERMATOLOGIST CYNTHIA STROHMEYER AND HER HUSBAND JON PROCEEDS WOULD GO TO GUADALUPE SOCIAL SERVICES WHICH WOULD TAKE 10 AND PUT THE BALANCE IN AN ACCOUNT FOR MR BELIZAIRE THE EVENT WAS SET FOR LAST MARCH 11 A THURSDAY FROM 6 TO 8 IN THE EVENING PRINTED INVITATIONS WITH A COLOR PHOTO OF A BELIZAIRE PAINTING ON THE FRONT WENT OUT TO ABOUT 150 OF THEIR FRIENDS AN EVENING IN HAITI THE INVITATION READ TO INTRODUCE ERNEST BELIZAIRE A LOCAL HAITIAN ARTIST MR BELIZAIRE DID SCORES OF PAINTINGS FOR THE EXHIBIT MANY OF THEM MINIATURES OFTEN AFTER 12HOUR DAYS AT THE PACKING PLANT WHICH BY THEN WAS GOING FULL STEAM THE TWO WOMEN PRICED THE PAINTINGS THE EVENING OF THE SHOW THE CREAMCOLORED WALLS OF THE DOCTORS' OFFICE EXAMINING ROOMS INCLUDED WERE FILLED WITH MR BELIZAIRE'S PAINTINGS THERE WERE CARIBBEAN HORS D'OEUVRES AND RUM PUNCH AND THERE WAS STEELDRUM BAND MUSIC ON THE COMPACT DISC PLAYER AS GUESTS ARRIVED MR BELIZAIRE GREETED THEM IN THE WAITING ROOM WITH AN INTERPRETER HE HAD A GOOD TIME AND WAS VERY HAPPY SAYS THE INTERPRETER NICOLAS DESILUS WHO WORKS FOR GUADALUPE IT WAS THE FIRST TIME IN HIS LIFE HE HAD THIS KIND OF SHOW THE BUYING TONE WAS SET EARLY WHEN ONE PROMINENT LOCAL WOMAN ANNOUNCED THAT SHE WOULD BUY AN ENTIRE WALL OF PAINTINGS IN THE WAITING ROOM IT WAS WILD WITH EXCITEMENT SAYS JO LYNN WARD A NURSE WHO THAT NIGHT WORKED AS A SERVER WE LIKENED IT TO A FEEDING FRENZY MR BELIZAIRE MADE NEARLY 4000 HE ALSO MADE THE FRONT PAGE OF THE NEXT MORNING'S NAPLES DAILY NEWS WHICH HAD A COLOR PHOTO OF THE ARTIST IN FRONT OF ONE OF HIS PAINTINGS HE THANKED HIS PATRONS BY GIVING THEM PAINTINGS MRS LASCHEID SAYS SHE GOT CALLS FROM COLLECTORS AND GALLERY OWNERS AS FAR AWAY AS NEW YORK AND CONNECTICUT PLUS ONE FROM GERMANY BUT THE EARLIEST INQUIRY CAME WHEN SHE OPENED HER HUSBAND'S OFFICE AT 630 THE MORNING AFTER THE SHOW AND FOUND JACK HARRIS THERE HE OWNS A LOCAL GALLERY NAMED GALLERY ONE AND HAD READ ABOUT THE EXHIBIT IN THE PAPER HE WANTED TO CARRY MR BELIZAIRE'S WORK IN TIME AN AGREEMENT WAS REACHED AND THAT IS HOW THE PAINTINGS OF ERNEST BELIZAIRE WHO FLED HAITI IN FEAR OF HIS LIFE CAME TO HANG IN A SLEEK GALLERY IN A FASHIONABLE PART OF ONE OF THE MORE GILDED COMMUNITIES IN THE LAND 9311010031 931101 BUSINESS BRIEF NACCO INDUSTRIES INC THIRDQUARTER NET PLUNGED BY 78 ON PRICING PRESSURE NACCO INDUSTRIES INC REPORTED THIRDQUARTER NET INCOME OF 2 MILLION OR 23 CENTS A SHARE DOWN 78 FROM 93 MILLION OR 105 A SHARE A YEAR EARLIER SALES ROSE 23 TO 4017 MILLION FROM 3925 MILLION NACCO SAID THE RISE WAS FUELED BY STRONGER NORTH AMERICAN AT ITS HYSTERYALE FORKLIFTTRUCK UNIT HOWEVER PRICING PRESSURE WORLDWIDE FORCED EARNINGS DOWN SAID R ROBERTSON HILTON VICE PRESIDENT AND TREASURER THE PREVIOUS YEAR'S RESULTS WERE RESTATED TO REFLECT AN ACCOUNTING CHANGE FOR INCOME TAXES WHICH REDUCED EARNINGS BY 302000 OR THREE CENTS A SHARE IN NEW YORK STOCK EXCHANGE TRADING FRIDAY NACCO'S CLASS A SHARES CLOSED AT 43125 DOWN 625 CENTS NACCO BASED IN MAYFIELD HEIGHTS OHIO ALSO MAKES SMALL ELECTRIC APPLIANCES AND MINES AND MARKETS LIGNITE COAL RESULTS AT THE HAMILTON BEACH/PROCTERSILEX APPLIANCE UNIT WERE HURT BY CONSERVATIVE ORDERING AMONG INVENTORYCONSCIOUS RETAILERS A WEAK CANADIAN DOLLAR AND STARTUP EXPENSES FROM CONSOLIDATION OF MOTOR PRODUCTION AT A WASHINGTON NC PLANT NACCO SAID 9311010030 931101 ABREAST OF THE MARKET SLOWER EARNINGS GROWTH MAY SPELL TROUBLE FOR STOCKS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL CORPORATE AMERICA PRODUCED HEALTHY PROFITS IN THE THIRD QUARTER BUT EVEN THOUGH SOME PROFITS WERE STELLAR AND MOST EXCEEDED EXPECTATIONS ANALYSTS NOW WORRY THAT COMPANIES MAY HAVE TROUBLE SUSTAINING THE RECENT STRONG PACE OF GROWTH WITH INTEREST RATES ALREADY NEAR ROCKBOTTOM LEVELS ANALYSTS SAY INVESTORS ARE RELYING EVER MORE HEAVILY ON EARNINGS TO PUSH PRICES HIGHER SO SLOWER EARNINGS GROWTH COULD HINDER THE STOCK MARKET'S PERFORMANCE BENJAMIN ZACKS EXECUTIVE VICE PRESIDENT OF ZACKS INVESTMENT RESEARCH SAYS A SURVEY OF THE NEARLY 700 COMPANIES IN THE DOW JONES INDUSTRY GROUPS SHOWS THAT SO FAR 62 HAVE REPORTED EARNINGS AS EXPECTED OR BETTER THAN ANALYSTS' ESTIMATES THIRDQUARTER EARNINGS FROM CONTINUING OPERATIONS BEFORE SPECIAL CHARGES AND GAINS GREW 257 FROM THE YEAR BEFORE THAT FIGURE SURPASSES THE 175 GROWTH IN THE SECOND QUARTER A SEPARATE WALL STREET JOURNAL SURVEY OF 597 COMPANIES SHOWED THAT CORPORATE AFTERTAX EARNINGS FROM CONTINUING OPERATIONS BUT INCLUDING SPECIAL CHARGES OR GAINS ROSE 24 COMPARED WITH AN 11 GAIN FOR THE SECOND QUARTER INDEED STELLAR EARNINGS REPORTS FROM COMPANIES SUCH AS FORD XEROX AND CATERPILLAR HAVE BUOYED THE SPIRITS OF MANY INVESTORS ABOUT FUTURE EARNINGS GROWTH BUT IF THE NUMBERS LOOK ROSY MR ZACKS CAUTIONS INVESTORS TO CONSIDER THAT ANALYSTS HAD DRASTICALLY REDUCED THEIR EARNINGS ESTIMATES AHEAD OF THE REPORTING SEASON MR ZACKS SAYS THAT THOUGH 25 EARNINGS GROWTH IS QUITE HEALTHY HE POINTS OUT THAT THE FIGURE IS PARTLY THE RESULT OF A VERY LOW YEAREARLIER COMPARISON IN ADDITION FOURTHQUARTER EARNINGS ARE EXPECTED ONLY TO MATCH THE THIRD QUARTER INDICATING A SLOWDOWN IN GROWTH MOMENTUM FOR THE FULL YEAR MR ZACKS ESTIMATES EARNINGS FOR THE DOW JONES UNIVERSE WILL GROW 2276 FROM A YEAR EARLIER IN 1994 EARNINGS GROWTH IS PROJECTED TO SLOW TO 1879 ONE OF THE BIGGER NEGATIVES IS THAT SO MUCH OF THE BETTER EARNINGS IS FROM COSTCUTTING AS OPPOSED TO REVENUE GROWTH MR ZACKS SAYS BUT COSTCUTTING SOON REACHES A POINT OF DIMINISHING RETURNS THAT POINT MAY ALREADY BE AT HAND SAYS SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP IN MINNEAPOLIS WHAT WE'RE SEEING IS THAT COST CONTROL AND PRODUCTIVITY GAINS ARE BEGINNING TO PETER OUT MR SOHN ARGUES WE HAVE A SITUATION WHERE WE'VE SQUEEZED THIS ORANGE AND GOTTEN SOME GOOD JUICE OUT OF IT BUT THE JUICE IS RUNNING OUT A CONTINUATION OF STRONG EARNINGS REQUIRES A PICKUP IN BROADBASED DEMAND MR SOHN SAYS BUT THE SIGNS OF THAT PICKUP HAVEN'T EMERGED YET EVEN WITHOUT THE POWER OF STRONG EARNINGS GROWTH MR SOHN BELIEVES THE STOCK MARKET ISN'T DEAD HE LOOKS TO SUBDUED INFLATION AND LOW INTEREST RATES TO HELP KEEP STOCK PRICES CLIMBING ALBEIT SLOWLY IN TODAY'S LOWINTERESTRATE ENVIRONMENT MR SOHN EXPECTS INVESTORS TO CONTINUE TO SEEK HIGHER YIELDS IN STOCKS YOU HAVE TO LOOK AT LIQUIDITY HE SAYS HOW MUCH CASH IS AROUND FOR INVESTORS TO USE AND RIGHT NOW THERE'S A LOT OF IT DESPITE THEIR CURRENT LOFTY LEVELS MR SOHN IS EXCITED ABOUT THE LONGTERM POTENTIAL FOR TECHNOLOGY AND COMMUNICATIONS STOCKS THE NEXT WAVE OF INNOVATION WILL COME FROM COMPANIES LIKE MICROSOFT AND INTEL HE SAYS THESE WILL BE LIKE INTERNATIONAL BUSINESS MACHINES AND XEROX WERE IN THE 1960S FACED WITH MORE MODEST EARNINGS GROWTH IN COMING QUARTERS ANALYSTS NEED TO LOWER THEIR PROFIT ESTIMATES SAYS HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP AT CURRENT ESTIMATES HE SAYS THE STOCK MARKET IS EXPECTED TO CLIMB 10 TO 15 NEXT YEAR MR JOHNSON ARGUES THAT BASED ON THE OUTLOOK FOR EARNINGS THOSE FIGURES SHOULD BE SHAVED TO ABOUT 3 TO 6 IT DOESN'T MEAN YOU SHOULD SUDDENLY GET BEARISH HE SAYS WHAT IT MEANS IS THE UPSIDE POTENTIAL FOR STOCKS ISN'T WHAT YOU THOUGHT IT WAS MR JOHNSON ATTRIBUTES THE SLOWER EARNINGS MOMENTUM TO THE ANEMIC ECONOMIC RECOVERY THE WEAKEST REBOUND IN THE POSTWAR PERIOD THE SLUGGISH RECOVERY SUGGESTS THAT INVESTORS SHOULD FOCUS ON COMPANIES THAT AREN'T DEPENDENT ON THE ECONOMIC CYCLE FOR PROFIT GAINS HE SAYS SMART INVESTORS HAVE MOVED BACK TO THE OLD GROWTH STOCKS MR JOHNSON SAYS FIND ME A BEATEN DOWN DRUG STOCK THAT THE WORLD HATES OR A BEATENUP TOBACCO HOUSEHOLD PRODUCTS OR FOOD STOCK I THINK YOU'LL FIND SOME VALUE THERE PARTICULARLY IN THIS ENVIRONMENT BUT TO OTHER OBSERVERS THE EARNINGS LANDSCAPE DOESN'T LOOK NEARLY SO BLEAK RICHARD PUCCI SENIOR VICE PRESIDENT OF I/B/E/S A SERVICE THAT MONITORS ANALYSTS' EARNINGS ESTIMATES PREDICTS THAT EARNINGS WILL CONTINUE IMPROVING HE SAYS ANALYSTS ARE NOW EXPECTING EARNINGS TO CLIMB 18 IN 1994 COMPARED WITH AN ESTIMATED 13 TO 14 GROWTH THIS YEAR IN 1992 EARNINGS GREW 12 FROM THE YEAR EARLIER THERE ARE A LOT OF PEOPLE OUT THERE LOOKING FOR A NEGATIVE STORY ON EARNINGS BUT EARNINGS KEEP BEATING THE ESTIMATES MR PUCCI SAYS I THINK THE OVERALL TREND IS UP FOR THE FORESEEABLE FUTURE HE BELIEVES SOME PICKUP IN OVERSEAS ECONOMIES WILL HELP LIFT EARNINGS FOR LARGE US MULTINATIONALS THAT BENEFIT FROM RISING EXPORTS IF A STOCK MARKET CORRECTION COMES MR PUCCI ADDS IT WILL MOST LIKELY BE CAUSED BY A MODEST RISE IN INTEREST RATES DUE TO A STRONGER ECONOMY IT'S NOT GOING TO BE BECAUSE EARNINGS SLOW DOWN HE CONTENDS A SMALL UPTICK IN INFLATION AND INTEREST RATES MAY SCARE PEOPLE A LITTLE STEVEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN & CO IS ENCOURAGED TO SEE A PREPONDERANCE OF POSITIVE EARNINGS SURPRISES IN SUCH A SLUGGISH ECONOMIC ENVIRONMENT EVEN IN A LOWINFLATION CLIMATE THAT LIMITS PRICE INCREASES COMPANIES ARE STILL BEATING ANALYSTS' ESTIMATES BECAUSE OF CONTINUED RESTRUCTURING MR RESNICK SAYS THAT TELLS ME EARNINGS MOMENTUM CAN STILL BE BETTER THAN THE UNDERLYING ECONOMY HE ADDS MR RESNICK TRACKS STOCK PRICE MOVEMENTS ON THE DAY EARNINGS REPORTS ARE RELEASED TO GAUGE THE OUTLOOK FOR THE STOCK HE NOTES THAT TWOTHIRDS OF THE FINANCIAL STOCKS AND OTHER INTERESTRATESENSITIVE STOCKS IN HIS DATABASE FELL ON REPORTS OF POSITIVE EARNINGS SURPRISES THIS TELLS ME THAT INVESTORS THINK FINANCIAL STOCKS HAVE HAD THEIR RUN AND THAT INTEREST RATES HAVE REACHED BOTTOM MR RESNICK SAYS STOCKS OF CONSUMER BRAND COMPANIES INCLUDING SOME OF THE GIANT DRUG FIRMS ROSE DESPITE MIXED EARNINGS REPORTS MR RESNICK SAYS THAT TELLS YOU THAT MARKET PSYCHOLOGY FELT THAT THE GROUP HAS BEEN OVERSOLD HE SAYS MR RESNICK ALSO IS ENCOURAGED THAT THE LARGEST GROUPING OF STOCKS IN HIS DATABASE WERE THOSE THAT ROSE ON POSITIVE EARNINGS SURPRISES THAT'S WHERE BULL MARKET DRIVE COMES FROM HE SAYS IT'S A POSITIVE INDICATION FOR THE STOCK MARKET STOCK PRICES WERE MIXED AMID PROFITTAKING AND A LATE SELLOFF IN PAPERRELATED SHARES THE DOW JONES INDUSTRIAL AVERAGE FELL 727 POINTS TO 368059 STANDARD & POOR'S 500STOCK INDEX GAINED 010 TO 46783 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX INCHED UP 039 TO 25938 THE NASDAQ COMPOSITE INDEX JUMPED 577 TO 77926 FOR THE WEEK THE INDUSTRIAL AVERAGE ROSE 3129 OR 086 THE S&P 500 GAINED 456 OR 098 AND THE NASDAQ COMPOSITE ADDED 657 OR 085 WORLDWIDE STOCK PRICES ROSE FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 057 TO 11349 INTERNATIONAL PAPER SLUMPED IN LATE TRADING ENDING DOWN 2 1/4 TO 59 1/2 AFTER DONALDSON LUFKIN & JENRETTE MADE NEGATIVE COMMENTS ABOUT PAPER STOCKS GEORGIAPACIFIC FELL 2 1/4 TO 64 1/4 STRENGTH IN TECHNOLOGY AND COMMUNICATIONS STOCKS LIFTED THE NASDAQ INDEX BIG GAINERS INCLUDED MICROSOFT WHICH ROSE 1 1/8 TO 80 1/8 NEXTEL COMMUNICATIONS 3 3/4 TO 54 3/8 CISCO SYSTEMS 1 1/2 TO 51 1/4 AND DSC COMMUNICATIONS 1 5/8 TO 65 5/8 AETNA LIFE & CASUALTY CLIMBED 2 7/8 TO 65 3/4 EARNINGS JUMPED TO 203 A SHARE IN THE THIRD QUARTER FROM 95 CENTS A YEAR EARLIER IT SAID EARNINGS GROWTH WAS STRONGEST IN ITS PROPERTYCASUALTY LINES AMERICAN EXPRESS ADDED 3/4 TO 32 1/4 AFTER SALOMON BROTHERS RAISED AN INVESTMENT RATING ON THE STOCK TO BUY FROM HOLD IT CITED RECENT WEAKNESS IN THE NEW YORK FINANCIAL SERVICE COMPANY'S SHARE PRICE AND SAID IT EXPECTS AMERICAN EXPRESS TO POST IMPROVED EARNINGS OVER THE NEXT TWO QUARTERS PROFITTAKING HIT THE BIG THREE AUTO MAKERS AFTER THEIR RECENT GAINS GENERAL MOTORS FELL 1 3/8 TO 47 5/8 FORD MOTOR 1 TO 61 7/8 AND CHRYSLER 1 1/4 TO 55 7/8 CHARLES SCHWAB INCREASED 2 1/8 TO 34 5/8 AND MORGAN STANLEY ROSE 1 7/8 TO 78 5/8 LEHMAN BROTHERS UPGRADED SCHWAB TO OUTPERFORM FROM UNDERPERFORM AND RAISED MORGAN STANLEY TO BUY FROM OUTPERFORM UAL THE PARENT OF UNITED AIRLINES FELL 3/4 TO 152 AFTER SOARING 6 ON THURSDAY BECAUSE OF A STRONG EARNINGS REPORT THE STOCK WAS DOWNGRADED BY KIDDER PEABODY TO NEUTRAL FROM OUTPERFORM YPF SA SLIPPED 5/8 TO 27 1/4 AFTER MERRILL LYNCH CUT A NEARTERM RATING TO NEUTRAL FROM ABOVE AVERAGE MERRILL LOWERED ITS LONGTERM VIEW ON THE ARGENTINE OIL AND GAS PRODUCER TO ABOVE AVERAGE FROM BUY HONG KONG TELECOMMUNICATIONS SURGED 3 7/8 TO 66 THE MOVE IN PART TRACKED THE CONTINUED SURGE IN MANY BLUECHIP ISSUES ON THE HONG KONG STOCK MARKET ANALYSTS SAID SHANGHAI PETROCHEMICAL ANOTHER HONG KONGTRADED STOCK JUMPED 3 TO 33 3/8 THE COMPANY DISCLOSED THURSDAY THAT ITS EARNINGS SURGED 169 IN THE SIX MONTHS ENDED JUNE 30 XEROX RALLIED FOR A SECOND STRAIGHT DAY GAINING 2 7/8 TO 79 1/4 IT CLIMBED 5 3/4 THURSDAY AFTER THE OFFICE PRODUCTS COMPANY REPORTED SOLID THIRDQUARTER PROFIT WEINGARTEN REALTY INVESTORS SLIPPED 1 1/8 TO 40 EVEN THOUGH THE REAL ESTATE INVESTMENT TRUST REPORTED A THIRDQUARTER PROFIT OF 37 CENTS A SHARE COMPARED WITH EARNINGS OF 28 CENTS BEFORE A CHARGE LAST YEAR IT DECLARED A QUARTERLY DIVIDEND OF 54 CENTS 9311010028 931101 BUSINESS BRIEF PULSE ENGINEERING INC NET INCOME ROSE SLIGHTLY IN QUARTER CHAIRMAN SAYS PULSE ENGINEERING INC SAN DIEGO EXPECTS TO REPORT FISCAL FIRSTQUARTER NET INCOME OF AROUND 800000 OR 11 CENTS TO 12 CENTS A SHARE UP SLIGHTLY FROM THE YEAR BEFORE DAVID F FLOWERS CHAIRMAN AND CHIEF EXECUTIVE SAID THE MAKER OF ELECTRONIC PARTS FOR TELECOMMUNICATIONS AND DATAPROCESSING EQUIPMENT EXPECTS TO REPORT SALES OF 16 MILLION TO 17 MILLION FOR THE QUARTER ENDED SEPT 30 MR FLOWERS SAID IN AN INTERVIEW IN THE YEAREARLIER PERIOD PULSE ENGINEERING EARNED 733000 OR 11 CENTS A SHARE ON SALES OF 132 MILLION SALES IN THE 1992 QUARTER WERE DEPRESSED BY LOWERTHANEXPECTED ORDERS FROM INTERNATIONAL BUSINESS MACHINES CORP A MAJOR CUSTOMER ON WHICH PULSE ENGINEERING HAS SINCE BECOME LESS DEPENDENT IBM PROGRAMS WE'VE BEEN PART OF HAVEN'T HAD THE SUCCESS THAT WE AND IBM EXPECTED THE EXECUTIVE SAID 9311010027 931101 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT BANCO DE GALICIA Y BUENOS AIRES SA 200 MILLION OF NEGOTIABLE OBLIGATION BONDS DUE NOV 1 2003 PRICED AS 9S AT 99542 TO YIELD 907 ACCORDING TO MCM CORPORATEWATCH THE BONDS ARE NONCALLABLE FOR FIVE YEARS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FORD MOTOR CREDIT CORP 300 MILLION OF NOTES DUE NOV 5 2008 PRICED AS 6375S AT 99952 TO YIELD 638 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 98 BASIS POINTS ABOVE 10YEAR TREASURYS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FORD MOTOR CREDIT IS A UNIT OF FORD MOTOR CORP PLASTIC SPECIALTIES & TECHNOLOGIES INC 125 MILLION OF SENIOR SECURED NOTES DUE DEC 1 2003 PRICED AT PAR TO YIELD 1125 THE ISSUE IS NONCALLABLE FOR FIVE YEARS RATED BY SINGLEB3 MOODY'S AND SINGLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY WERTHEIM SCHRODER & CO VALCOR INC 100 MILLION OF SENIOR NOTES DUE NOV 1 2003 PRICED AS 9625S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED SINGLEB1 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO VALCOR IS A UNIT OF VALHI INC EXIDE CORP INITIAL OFFERING OF FOUR MILLION COMMON SHARES PRICED AT 20 APIECE THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO REGENCY REALTY CORP INITIAL OFFERING OF 5620779 COMMON SHARES PRICED AT 1925 APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 210 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1641 IS BACKED BY THE AGENCY'S 20YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 238 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 135 BILLION OF STRIPPED MORTGAGEBACKED SECURITIES TRUST 252 BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 798 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 292 YEARS UNDERWRITERS INCLUDE GOLDMAN SACHS & CO GREENWICH CAPITAL MARKETS INC BEAR STEARNS & CO DONALDSON LUFKIN & JENRETTE SECURITIES CORP KIDDER PEABODY & CO LEHMAN BROTHERS INC AND PRUDENTIAL SECURITIES INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS INC THE OFFERING SERIES 1993238 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 705 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 175 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993G37 IS BACKED BY THE AGENCY'S PRINCIPALONLY STRIPS TRUST 244 WHICH IS BACKED IN TURN BY 85 GINNIE MAE CEIFICATES KMART CORP 205 MILLION OF LEASEBACKED PASSTHROUGHS PRICED IN TWO PARTS THROUGH SOLE UNDERWRITERS DILLON REED & CO ACCORDING TO MCM CORPORATEWATCH THE SECURITIES ISSUED THROUGH DR SECURITIZED LEASE TRUST 1993 K1 ARE BACKED BY KMART LEASES A 111 MILLION CLASS OF AMORTIZING CERTIFICATES WITH A 10226 AVERAGE LIFE WERE PRICED AS 666 AT PAR TO YIELD 125 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE THE 94 MILLION CLASS OF CERTIFICATES WITH AN AVERAGE LIFE OF 209 YEARS WAS PRICED AS 743S AT PAR TO YIELD 125 BASIS POINTS ABOVE THE TREASURY'S 7125S OF FEBRUARY 2023 THE CERTIFICATES WERE RATED SINGLEA BY S&P ACINDAR INDUSTRIA DE ARGENTINA DE ACEROS SA ARGENTINA 150 MILLION OF FLOATINGRATE EURONOTES DUE NOV 12 1998 AT ISSUE PRICE PAR VIA CHASE INVESTMENT BANK LTD INTEREST PAID SEMIANNUALLY AT 575 BASIS POINTS OVER SIXMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS ON NOV 12 1996 THERE IS A PUT AT 91434 AND ANOTHER AT 9249 ON NOV 12 1997 FEES 1125 COMMERZBANK OVERSEAS FINANCE NV GERMAN PARENT 750 MILLION OF SENIOR FLOATINGRATE EURONOTES DUE NOV 30 1998 AT ISSUE AND FIXED REOFFER PRICE 994 VIA MERRILL LYNCH INTERNATIONAL LTD AND COMMERZBANK AG INTEREST PAID QUARTERLY AT THREEMONTH LONDON INTERBANK BID RATE FLAT GUARANTOR COMMERZBANK AG FEES 015 DEUTSCHE BANK FINANCE CURACAO NV GERMAN PARENT 250 MILLION CANADIAN DOLLARS OF 7 EUROBONDS DUE JAN 7 2004 AT ISSUE PRICE 10105 VIA LEAD UNDERWRITER DEUTSCHE BANK AG LONDON REOFFERED AT 99375 TO YIELD 709 A SPREAD OF 15 BASIS POINTS ABOVE CANADIAN GOVERNMENT BOND DUE DECEMBER 2003 GUARANTOR DEUTSCHE BANK AG FEES TWO DILMUN CAPITAL LTD BERMUDA AND DILMUN CAPITAL CORP US 110 MILLION OF FLOATINGRATE EURONOTES DUE NOV 15 2003 AT ISSUE PRICE 9925 VIA MORGAN STANLEY INTERNATIONAL INTEREST PAID SEMIANNUALLY AT SIXMONTH LIBOR PLUS 875 BASIS POINTS CALLABLE ON NOV 15 1996 AND ON EACH INTEREST PAYMENT DATE THEREAFTER AT PAR BONDS EXPECTED TO HAVE AN 753 YEARS AVERAGE LIFE FEES 02 EUROFIMA SUPRANATIONAL 10 BILLION PORTUGUESE ESCUDOS OF 8875 EUROBONDS DUE DEC 6 2000 AT ISSUE PRICE 101 VIA BPIBANCO PORTUGUES INVESTIMENTO SA BONDS PRICED TO YIELD 897 AT COMANAGERS' BREAKEVEN PRICE 995 A SPREAD OF 70 BASIS POINTS ABOVE THE COMPARABLE SPANISH GOVERNMENT BOND FEES 1625 SBAB AB SWEDEN 20 BILLION YEN OF 35 EUROBONDS DUE FEB 26 1999 AT ISSUE AND FIXED REOFFER PRICE 10005 VIA DAIWA EUROPE LTD AND NORINCHUKIN INTERNATIONAL LTD BONDS PRICED TO YIELD 349 AND LAUNCHED OFF SBAB'S EURO MEDIUMTERMNOTE PROGRAM FEES 025 9311010026 931101 WHO'S NEWS ENTERGY CORP ENTERGY CORP NEW ORLEANS JERRY MAULDEN WAS NAMED TO THE NEWLY CREATED POST OF PRESIDENT AND CHIEF OPERATING OFFICER MR MAULDEN 57 YEARS OLD WAS A GROUP PRESIDENT AT ENTERGY 9311010025 931101 LEISURE & ARTS BUSINESS BOOKSHELF COOKING THE BOOKS AND OTHER TRICKS BY STANLEY W ANGRIST NOTHING WILL SEND A STOCK'S PRICE DOWN FASTER THAN A HINT THAT ITS BOOKS HAVE BEEN COOKED THAT MEANS THE NUMBERS STOCK ANALYSTS AND INVESTORS HAVE BEEN BASING THEIR INVESTMENT OPINIONS AND DECISIONS ON ARE OTHER THAN REPORTED AND THEREFORE SUBJECT TO REVISION THE CHANGE IN THE NUMBERS IS LIKELY TO BE SUBSTANTIAL ELSE WHY BOTHER TO DIDDLE THE NUMBERS AT ALL IS THERE ANYTHING INVESTORS CAN DO TO PROTECT THEMSELVES AGAINST FINANCIAL REPORTS THAT ARE LESS THAN HONEST HOWARD SCHILIT IN HIS BOOK FINANCIAL SHENANIGANS MCGRAWHILL 191 PAGES 2295 DESCRIBES SEVEN WAYS IN WHICH FINANCIAL REPORTS ARE ALTERED TO MAKE THEM LOOK BETTER THAN THEY REALLY ARE THEY INCLUDE SUCH SLEAZEBALL FAVORITES AS RECORDING REVENUE BEFORE IT IS EARNED CREATING FICTITIOUS REVENUE AND BOOSTING PROFIT WITH NONRECURRING TRANSACTIONS THE AUTHOR ILLUSTRATES EACH OF THESE FEATS OF NUMBERS MAGIC WITH A VIGNETTE FROM COMPANIES WHO USED THEM TO FOOL SHAREHOLDERS IN MOST CASES HE ALSO PROVIDES A CHART THAT SHOWS WHAT HAPPENED TO THE COMPANY'S STOCK PRICE WHEN THE NEWS BECAME PUBLIC UNLESS YOU ARE A SHORTSELLER THEY DON'T MAKE FOR PRETTY PICTURES ONE NIFTY ACCOUNTING TRICK DESCRIBED BY MR SCHILIT IS TO RECORD AS REVENUE THE CREDITS RECEIVED FROM SUPPLIERS FOR MISSHIPMENTS FOR EXAMPLE RECENTLY THE SECURITIES AND EXCHANGE COMMISSION CHARGED LA GEAR INC WITH IMPROPERLY CLASSIFYING AS INCOME 47 MILLION IN ONETIME VENDOR CREDITS THAT IT HAD NOT ACTUALLY COLLECTED AFTER RESTATING ITS FINANCIAL REPORTS THE COMPANY REPORTED A NET LOSS OF 4 MILLION DOWN FROM AN ORIGINALLY REPORTED NET GAIN OF 258000 SHAREHOLDERS THOUGHT THIS NOT VERY PROMISING FOR THE STOCK THE SHORTS LOVED IT IN ORDER TO FIND SUCH SHENANIGANS INVESTORS MUST LEARN TO READ ANNUAL REPORTS WITH A FINETOOTHED COMB SAYS MR SCHILIT SKIP QUARTERLY REPORTS AS THEY ARE UNAUDITED THEY MUST PAY PARTICULAR ATTENTION TO THE FOOTNOTES TO THE NUMBERS THAT APPEAR IN THE INCOME AND CASHFLOW STATEMENTS AND BALANCE SHEET THE BAD STUFF ALMOST ALWAYS APPEARS IN THE FOOTNOTES WHICH LESSTHANFORTHRIGHT COMPANIES HOPE YOU WON'T READ THE AUTHOR SUGGESTS A NUMBER OF SIMPLE CALCULATIONS THAT CAN BE MADE BASED ON THE ANNUAL REPORT'S NUMBERS HERE'S A BOOK FOR PARANOIDS IF YOU THINK INVESTING IN THE MARKET IS ASKING TO BE SKINNED READ INVESTMENT ILLUSIONS WILEY 230 PAGES 2495 BY MARTIN FRIDSON THE AUTHOR IS A WALL STREET PRO WHO HAS BEEN AROUND LONG ENOUGH TO HAVE SEEN MOST OF THE TRICKS THAT FOOL NEOPHYTES AND SOMETIMES EXPERIENCED INVESTORS MR FRIDSON DESCRIBES 30 OR SO TECHNIQUES THAT CAN AFFECT YOUR SCHEDULE D IN NOTSODESIRABLE WAYS HE SHOWS HOW NUMBERS CAN BE USED TO PAINT PICTURES THAT ARE SOMETHING OTHER THAN WHAT THEY SEEM FOR EXAMPLE HE CITES THE MUTUALFUND MANAGER WHO HAS FINISHED IN THE TOP HALF OF ALL THE FUNDS IN HER PEER GROUP FOR THREE YEARS IN A ROW SHE CLAIMS THAT SHE HAS FOUND A WAY TO IDENTIFY UNDERVALUED STOCKS BEFORE MOST OTHER MANAGERS AND CITES HER THREEYEAR RECORD AS PROOF THE AUTHOR POINTS OUT THAT BY APPLYING ELEMENTARY PROBABILITY THEORY IT IS POSSIBLE TO CONCLUDE THAT THERE IS LESS TO THIS MANAGER'S CLAIM THAN MEETS THE EYE SUPPOSE NO MANAGER IN HER PEER GROUP ENJOYS A REAL EDGE IN PICKING STOCKS OR TIMING THE MARKET UNDER THESE CONDITIONS EACH MANAGER HAS A 50 CHANCE OF PLACING IN THE TOP HALF DURING THE FIRST YEAR THE RACE STARTS OVER IN YEAR TWO AND ACCORDINGLY 50 OF YEAR ONE'S ABOVEMEDIAN PERFORMERS MUST ACHIEVE ABOVEMEDIAN RESULTS IN YEAR TWO AS WELL BY THIS REASONING EACH MANAGER IN THE PEER GROUP HAS A ONEINFOUR CHANCE OF REACHING THE TOP HALF IN BOTH YEARS ONE AND TWO CONTINUING THIS REASONING TO THE THIRD YEAR REVEALS THAT ONEEIGHTH OF ALL THE MANAGERS SHOULD HAVE TOPHALF PERFORMANCE FOR THREE YEARS IN A ROW CONCLUSION THREE YEARS IS SIMPLY NOT ENOUGH TIME TO PROVE OR DISPROVE A MANAGER'S ABILITY SHE COULD BE JUST LUCKY IN PAUL ERDMAN'S NEWEST NOVEL ZERO COUPON ST MARTIN'S 350 PAGES 2195 GLAMOROUS PEOPLE WEARING DONNA KARAN TOGS HAVE INTENSELY HAPPY MOMENTS MORE COMMONLY ASSOCIATED WITH BODICERIPPERS AS THEY CONTEMPLATE INVERSE FLOATERS AND INDEX CURRENCY OPTION NOTES WHILE IN A FEDERAL WHITECOLLAR PRISON FOR SOME FASTBUCK SLEIGHTOFHAND ACTIVITIES IN JUNK BONDS HEROSCOUNDREL WILLIE SAXON COMES UP WITH A PRETTY INTERESTING WAY TO EXTRACT MONEY FROM THE FINANCIAL MARKETS USING ZEROCOUPON MUNICIPAL BONDS DULL THINGS HARDLY ANYONE WOULD SUSPECT OF HANKYPANKY UNLIKE MOST BONDS A ZEROCOUPON BOND YIELDS NO PERIODIC INTEREST PAYMENTS BUT IS INITIALLY SOLD AT A DISCOUNT WITH THE OWNER RECEIVING ITS FACE VALUE AT MATURITY THE DIFFERENCE BETWEEN THE DISCOUNTED PRICE AND THE FACE VALUE IS THE BOND'S ACCRUED INTEREST IN THE SMALLER OF THE TWO DEALS HE PLACES FICTITIOUS BONDS WITH A PRIVATE BOND FUND FIGURING CORRECTLY THAT NOBODY WOULD CHECK WHETHER THAT RECYCLING PLANT WAS REALLY GETTING BUILT IN THAT NICE LITTLE FARAWAY TOWN WITH NO DONNA KARAN STORE AND HE ALSO ASSUMES CORRECTLY HE'LL BE DEAD 40 YEARS LATER WHEN THE TOWN DISCOVERS IT OWES THE BOND FUND 20 MILLION FOR A FICTITIOUS RECYCLING PLANT 9311010024 931101 WHO'S NEWS BANK OF BOSTON FORCES OUT ENTIRE LAYER OF SENIOR MANAGEMENT IN SURPRISE MOVE BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON BANK OF BOSTON CORP IN A SURPRISE SHAKEUP OF SENIOR MANAGEMENT FORCED OUT THREE TOP EXECUTIVES AND NAMED TWO OTHERS VICE CHAIRMEN OVERHAULING THE TEAM CLOSEST TO CHIEF EXECUTIVE IRA J STEPANIAN THE MOVE SHOCKED ANALYSTS AND INSIDERS ALIKE IT DISBANDED AN ENTIRE LAYER OF SENIOR MANAGEMENT AND REMOVED KEVIN J MULVANEY WHO WAS SEEN AS AN EVENTUAL CONTENDER FOR THE CHAIRMAN'S JOB ANALYSTS SAID THE CHANGES CREATE A MORE RESPONSIVE MANAGEMENT STRUCTURE AND COULD PORTEND A STRONGER THRUST INTO RETAIL BANKING BY THE BANK THE SECONDLARGEST IN THE NEW ENGLAND REGION WITH 32 BILLION IN ASSETS BUT CURRENT AND FORMER EXECUTIVES SAID THE MOVE FOLLOWS A SPLIT BETWEEN THE YOUNG MANAGERS AND MR STEPANIAN CHIEF EXECUTIVE SINCE 1987 AND CHARLES K GIFFORD PRESIDENT AND CHIEF OPERATING OFFICER CHIEF FINANCIAL OFFICER WILLIAM J SHEA AND NEW ENGLAND GROUP EXECUTIVE EDWARD A O'NEAL WERE EACH GIVEN THE ADDITIONAL POST OF VICE CHAIRMAN THEY JOIN MR STEPANIAN WHO REMAINS CHAIRMAN AS WELL AS CHIEF EXECUTIVE AND MR GIFFORD IN A NEW FOURMEMBER OFFICE OF THE CHAIRMAN THIS IS THE MOST DRAMATIC REORGANIZATION I'VE SEEN IN 15 YEARS FOLLOWING THE BANKING INDUSTRY SAID THOMAS BROWN AN ANALYST AT DONALDSON LUFKIN & JENRETTE HE ALSO SAID THAT THE EVENTUAL RACE TO SUCCEED MR STEPANIAN AS CHIEF EXECUTIVE ONCE CLEARLY BETWEEN MR GIFFORD AND MR MULVANEY HAS SUDDENLY BEEN THROWN WIDE OPEN MR STEPANIAN WHO WAS THE ARCHITECT OF THE CHANGES SAID THE STEPS WERE DESIGNED TO CUT BUREAUCRACY AND BRING THE BANK'S MANAGEMENT CLOSER TO ITS CUSTOMERS IF YOU'RE GOING TO MAKE A CHANGE THIS RADICAL YOU REALLY HAVE TO START AT THE TOP SAID MR STEPANIAN THE CHANGES ALSO SIGNAL A NEW COMMITMENT TO CONSUMER AND RETAIL BANKING SAID GERARD CASSIDY OF JOHN HANCOCK INSTITUTIONAL EQUITIES INC BECAUSE OF THE ELEVATION OF MR O'NEAL A WELLREGARDED CONSUMERBANKING AND TECHNOLOGY EXECUTIVE WHO JOINED BANK OF BOSTON ONLY LAST YEAR HE HAD BEEN A VICE CHAIRMAN AT CHEMICAL BANK CORP THE ONE AREA WHERE THEY'VE BEEN BEHIND IS IN NEW ENGLAND RETAIL AND CONSUMER BANKING HE SAID NOTING BANK OF BOSTON'S HISTORICAL FOCUS ON COMMERCIAL LENDING BY PUTTING ED O'NEAL IN THE OFFICE OF THE CHAIRMAN THEY'RE MAKING IT A NEW PRIORITY STILL OBSERVERS WERE PUZZLED BY THE MOVE WHICH MARKS A SECOND REORGANIZATION AT THE BANK IN AS MANY YEARS AND REMOVES KEY MANAGERS WHO WERE A PART OF ITS STRONG TURNAROUND IN THE PAST TWO YEARS MR STEPANIAN SAID THE CHANGES EMPOWER LINE MANAGERS TO MAKE THEIR OWN DECISIONS IN THE NEW MODEL A 29MEMBER COMMITTEE OF MANAGERS IS GROUPED INTO FOUR OPERATIONAL AREAS REPORTING TO THE FOUR MEMBERS OF THE CHAIRMAN'S OFFICE HE SAID THE CHANGES EVOLVED FROM A SIXMONTH STUDY OF HORIZONTAL MANAGEMENT STRUCTURE AT GENERAL ELECTRIC CO CORNING INC MONSANTO CORP AND OTHERS BUT INDUSTRY INSIDERS SAID THE FORCED RESIGNATIONS WEREN'T EXPECTED AND CAME WITH EXTRAORDINARY SWIFTNESS THE THREE EXECUTIVES REMOVED WERE TOLD LATE THURSDAY AND THE ANNOUNCEMENT CAME EARLY FRIDAY THERE WERE THREE GUYS IN THE BANK WHO STOOD UP TO MESSRS STEPANIAN AND GIFFORD AND GONE ONE OF THE INDUSTRY EXECUTIVES SAID MR STEPANIAN DECLINED TO COMMENT ON WHETHER THE OUSTERS REFLECTED PERSONAL DISAGREEMENTS BUT HE ADDED THAT TEAMWORK CANDOR AND CAPABILITY ARE CRUCIAL TO ME TWO OUT OF THREE ISN'T GOOD ENOUGH IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BANK OF BOSTON ROSE 75 CENTS TO 2350 A SHARE FRIDAY 9311010023 931101 BUSINESS BRIEF FIAT SPA JOINTVENTURE DISCUSSIONS ARE UNDER WAY WITH GKN ITALY'S FIAT SPA SAID IT IS TALKING WITH GKN PLC A BRITISH MOTORCOMPONENTS CONCERN ABOUT A MANUFACTURING JOINT VENTURE FIAT SAID THE TALKS ARE AIMED AT EXPLORING THE OPPORTUNITIES FOR A JOINT COMPANY TO BUILD A PLANT FOR AUTOMOTIVE CONSTANTVELOCITY JOINTS AT CAMPI BISENZIO NEAR FLORENCE ITALY FIAT SAID THE DISCUSSIONS STEM FROM ITS PLAN TO FOCUS ON VEHICLE DESIGN AND DEVELOPMENT AND TO DEVELOP LINKS WITH OUTSIDE SUPPLIERS INVOLVED IN PRODUCING SPECIALIZED HIGHTECHNOLOGY COMPONENTS A GKN SPOKESMAN DECLINED TO DISCLOSE DETAILS OF THE POSSIBLE INVESTMENT SAYING ONLY THAT IT WOULD INVOLVE A SIGNIFICANT FINANCIAL INVESTMENT BY GKN 9311010022 931101 REVIEW & OUTLOOK EDITORIAL MORE TO HEAR SO WE HAVE A SOLUTION AFTER ALL TO REGULATING AN INTERNATIONAL BANKING SYSTEM GROWN TOO COMPLICATED FOR AUTHORITIES IN THE US OR UK THE LUXEMBOURG COURT OF APPEAL DECIDED THAT SOMEONE HAS TO DO THE JOB AND TURNED THUMBS DOWN ON PROPOSALS TO LET THE BCCI CASE DIE WITH A WHIMPER THE COURT REJECTED THE PROPOSED SETTLEMENT BETWEEN LIQUIDATORS AND SHAREHOLDERS OF THE BANK OF CREDIT AND COMMERCE INTERNATIONAL UNDER ITS TERMS THE EMIRATE OF ABU DHABI THE PRINCIPAL SHAREHOLDER WOULD PONY UP 17 BILLION BUT WOULD RECEIVE HALF OF PREVIOUSLY RECOVERED ASSETS AND ALSO BE ALLOWED TO SUBMIT ITS OWN CREDITOR CLAIMS ON THE SETTLEMENT POOL THE DEPOSITORS OUT MORE THAN 10 BILLION WOULD RECEIVE PAYMENTS OF SOME 30 CENTS ON THE DOLLAR DEPOSITORS RECEIVING RESTITUTION WOULD HAVE TO AGREE NOT TO BRING FURTHER SUITS ALLEGING THAT ABU DHABI WAS A PARTY TO THE FRAUD BY THE BANK IT OWNED BUT ABU DHABI IS SHELTERING UNDER HOUSE ARREST MANY OF THE BANK'S EXECUTIVES AND ITS RECORDS THE LUXEMBOURG LIQUIDATOR BRIAN SMOUHA OF TOUCHE ROSS IN LONDON GAVE A DEPOSITION DESCRIBING A WAREHOUSE OF RECORDS SOME 60 YARDS LONG TO WHICH HE WAS NOT PERMITTED ACCESS THE LIQUIDATORS HOWEVER EXPRESSED THEIR REGRET AT THE COURT'S REJECTION OF THE SETTLEMENT THEY'D NEGOTIATED MUCH OF THE COVERAGE OF THE DECISION TREATED IT AS A BLOW TO THE CREDITORS ON THE GROUNDS THEY'D RECEIVE NO MONEY UNTIL AFTER FURTHER LITIGATION REACHING INTO THE NEXT CENTURY THE WASHINGTON PR FIRM OF ROBINSON LAKE LERER & MONTGOMERY ISSUED A STATEMENT ON BEHALF OF ABU DHABI SAYING THAT CREDITORS HAVE LOST THEIR ONLY OPPORTUNITY FOR A TIMELY PAYMENT NO ONE WRITING ABOUT THE LUXEMBOURG DECISION THOUGH HAPPENED TO NOTICE A FILING WITH THE COURT BY HARRY W ALBRIGHT JR THE TRUSTEE FOR WASHINGTON'S FIRST AMERICAN CORP HE OBJECTED TO THE SETTLEMENT ON SOME INTERESTING GROUNDS FOR EXAMPLE THAT ITS TERMS DO NOT OBTAIN FROM ABU DHABI COMPENSATION THAT ADEQUATELY REFLECTS ABU DHABI'S INVOLVEMENT AND CULPABILITY FOR THE FRAUD HE SAID THE SETTLEMENTS MIGHT HAVE SEEMED REASONABLE WHEN FIRST NEGOTIATED BUT ASSERTED THAT THE ROLE OF THE ABU DHABI DEFENDANTS IN BCCI WRONGDOING HAS BECOME INCREASINGLY CLEAR MR ALBRIGHT POINTED OUT THAT FIRST AMERICAN HAS AN ACTIVE CIVIL SUIT IN WASHINGTON DC DISTRICT COURT ASSERTING DAMAGES THAT IF COLLECTED WOULD REDOUND TO THE BENEFIT OF A WORLDWIDE SETTLEMENT POOL THE SUIT CITES AS DEFENDANTS SHEIKH ZAYED BIN SULTAN ALNAHYAN THE RULER OF ABU DHABI ALONG WITH HIS FAMILY RETAINERS AND HOLDING COMPANIES INCLUDING THE ABU DHABI INVESTMENT AUTHORITY ALSO VARIOUS PROMINENT SHAREHOLDERS OF AND FRONTS FOR BCCI AS WELL AS CLARK CLIFFORD AND ROBERT ALTMAN WHO RAN THE FIRST AMERICAN BANK WHILE IT WAS OWNED BY BCCI THESE WORTHIES IT MIGHT BE NOTED OWN ASSETS ALL OVER THE WORLD THAT WOULD BE SUBJECT TO SEIZURE TO SATISFY ANY JUDGMENT MR ALBRIGHT MIGHT OBTAIN MR ALTMAN WAS ACQUITTED IN A RECENT CRIMINAL TRIAL OF COURSE BUT THE STANDARDS OF PROOF WILL BE MUCH LOWER IN THE CIVIL ACTION ALSO THE OUTCOME OF A TRIAL JUST MIGHT BE AFFECTED BY THOSE 60 YARDS OF DOCUMENTS IN ABU DHABI AND THE WITNESSES IN HIS LETTER TO THE COURT MR ALBRIGHT COMPLAINED THAT THE PROPOSED SETTLEMENT AS CURRENTLY DRAFTED WILL IMPEDE FIRST AMERICAN'S EFFORTS TO PROSECUTE THE LIQUIDATORS HAVE CONDUCTED INVESTIGATIONS THAT PRESUMABLY HAVE UNCOVERED INFORMATION THAT MIGHT BE HELPFUL IN THE FIRST AMERICAN SUIT BUT REVEALING ANY SUCH INFORMATION MAY BE INCONSISTENT WITH THEIR OBLIGATIONS UNDER THE PROPOSED SETTLEMENT AGREEMENTS JUDGE RAUL GRETSCH PONDERED ALL THIS AND DECIDED THAT WHILE THE SETTLEMENT HAD ALREADY BEEN APPROVED IN THE UNITED KINGDOM AND THE CAYMAN ISLANDS IN LUXEMBOURG IT SMELLED LIKE A COVERUP THE LIQUIDATORS HAVE NO RIGHT TO SIGN THE SETTLEMENT HE SAID BECAUSE IT CREATES A CREDITOR PRIVILEGED TO THE DETRIMENT OF OTHERS CLEARLY SOME OF THE CREDITORS WOULD PREFER TO TAKE WHAT THEY CAN GET NOW RATHER THAN TAKE THEIR CHANCES WITH FURTHER LITIGATION AGAINST WELLFINANCED DEFENDANTS BUT SOME OF THE PARTIES DISPUTE THE CLAIM THAT 93 OF CREDITORS APPROVED THE SETTLEMENT SAYING THAT MOST CREDITORS DID NOT VOTE AND MOST OF THOSE WHO DID ARE IN ABU DHABI MOST CREDITORS HAVE ALREADY WRITTEN OFF THEIR MONEY WE SUSPECT BUT THERE SEEM TO BE AT LEAST A FEW WHO FEEL IT WAS BAD ENOUGH TO BE TAKEN BY THE ORIGINAL FRAUD WITHOUT BEING TAKEN AGAIN IN ITS SETTLEMENT THE SAME DIVISION SEEMS TO APPEAR AMONG THE REGULATORS WHO MISSED THE WORLD'S BIGGEST BANK HEIST MOSTLY THEY WOULD LIKE IT TO GO AWAY SO THEY CAN FORGET FOR OUR PART WE'D LIKE TO HAVE SOME ANSWER TO THE QUESTION MR ALTMAN'S ACQUITTAL HAS ONLY HEIGHTENED TO WIT HOW DID IT ALL HAPPEN ANYWAY WE'RE GLAD TO KNOW THAT HARRY ALBRIGHT AND RAUL GRETSCH SHARE OUR CURIOSITY 9311010021 931101 MARKETING & MEDIA MACY'S NET LOSS NARROWED SHARPLY FOR FISCAL 1993 BY JENNIFER CODY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK RH MACY & CO'S NET LOSS NARROWED SHARPLY FOR FISCAL 1993 AND THE COMPANY SWUNG TO PROFIT USING A MEASURE OF HEALTH FOR COMPANIES IN BANKRUPTCY PROCEEDINGS MACY SAID ITS NET LOSS SHRANK TO 544 MILLION FOR THE YEAR ENDED JULY 31 FROM 125 BILLION A YEAR EARLIER THE 544 MILLION NET LOSS INCLUDED REORGANIZATION COSTS DEFERRED INTEREST EXPENSE CHARGES FOR STORE CLOSINGS AND OTHER ITEMS THE RETAILER'S OPERATING LOSS NARROWED TO 716 MILLION FROM 330 MILLION EXCLUDING INTEREST TAXES DEPRECIATION AND AMORTIZATION EARNINGS FOR THE YEAR WERE 2101 MILLION COMPARED WITH A YEAREARLIER LOSS OF 389 MILLION MACY IS OPERATING UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE AND EARNINGS MEASURED THIS WAY ARE CONSIDERED A MOREMEANINGFUL MEASURE OF RESULTS FOR SUCH COMPANIES MACY SAID THE RESULTS REFLECTED DECREASED MARKDOWN ACTIVITY IMPROVED GROSS MARGINS DECREASED STORELEVEL SELLING EXPENSES AND REDUCED ADVERTISING EXPENSES SALES FOR THE FISCAL YEAR FELL TO 63 BILLION FROM 645 BILLION A YEAR EARLIER BUT ON A COMPARABLESTORE BASIS SALES ROSE 17 MACY DIDN'T BREAK OUT RESULTS FOR THE FISCAL FOURTH QUARTER DESPITE SLUGGISH SALES THE AGGRESSIVE STEPS WE HAVE BEEN TAKING TO RESTRUCTURE OUR OPERATIONS AND SYSTEMS AND TO REDUCE EXPENSES ARE BEGINNING TO HAVE THEIR DESIRED EFFECT SAID MYRON E ULLMAN III CHAIRMAN AND CHIEF EXECUTIVE OFFICER FOR SEPTEMBER ALONE MACY SAID ITS NET LOSS WAS 31 MILLION DOWN FROM 50 MILLION A YEAR EARLIER AND ITS OPERATING LOSS 600000 DOWN FROM 188 MILLION EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION WERE 252 MILLION UP FROM 8 MILLION SALES SLIPPED 08 FOR THE MONTH AND 14 ON A COMPARABLESTORE BASIS REFLECTING CONTINUED ECONOMIC DIFFICULTY IN THE NORTHEAST AND CALIFORNIA AS WELL AS CHANGES IN PROMOTIONAL ACTIVITIES AND A RESTRUCTURING OF THE ELECTRONICS BUSINESS SEPARATELY THE COMPANY SAID IT WILL ADD THREE DIRECTORS TO ITS BOARD IN NOVEMBER BEVERLY SILLS GREENOUGH 64 MANAGING DIRECTOR OF THE METROPOLITAN OPERA GARY C WENDT 51 CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GENERAL ELECTRIC CAPITAL CORP AND HAROLD M WILLIAMS 65 PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE J PAUL GETTY TRUST INCREASING THE BOARD TO 11 9311010020 931101 BUSINESS BRIEF UNOCAL CORP PAYMENT OF 422 MILLION TO ALASKA IS SET IN DISPUTES UNOCAL CORP LOS ANGELES SAID IT AGREED TO PAY THE STATE OF ALASKA 422 MILLION TO SETTLE DISPUTES OVER STATE OIL AND GAS PRODUCTION TAX LIABILITIES DURING THE MID1980S THE PAYMENT COMPRISING 188 MILLION IN TAXES AND 234 MILLION IN INTEREST ALREADY HAS BEEN ACCOUNTED FOR AND WON'T AFFECT 1993 PROFIT UNOCAL SAID IT WASN'T KNOWN WHETHER UNOCAL WOULD INCUR LIABILITIES FOR YEARS SUBSEQUENT TO 1986 A COMPANY REPRESENTATIVE WOULD SAY ONLY THAT NO ASSESSMENTS HAD BEEN RECEIVED ALASKA STATE OFFICIALS SAID CONFIDENTIALITY LAWS PREVENTED THEM FROM COMMENTING BUT IN A STATEMENT SAID THE SETTLEMENT REPRESENTED THE CONTINUING EFFORTS OF UNOCAL AND THE STATE TO RESOLVE TAX DISPUTES 9311010019 931101 MOODY'S CUTS RATINGS FOR UAL'S PREFERRED UNITED AIRLINES' DEBT NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT LOWERED CERTAIN LONGTERM DEBT RATINGS OF UNITED AIRLINES AS WELL AS THE PREFERRED STOCK RATING OF UAL CORP THE AIRLINE'S PARENT COMPANY THE DOWNGRADES COME AS THE COMPANY AND ITS UNIONS ARE DEEP IN NEGOTIATIONS TO SUBSTANTIALLY CUT WAGES AND BENEFITS AND TO CREATE A LOWCOST AIRLINE WITHIN AN AIRLINE TO HANDLE SHORTER ROUTES IN EXCHANGE FOR THE CONCESSIONS THE UNIONS ARE SEEKING A MAJORITY STAKE IN UAL IN MAKING THE DOWNGRADES MOODY'S SAID UNITED'S RELATIVE COMPETITIVE POSITION REMAINS WEAKENED DUE TO ITS HIGH EXPOSURE TO INTERNATIONAL MARKETS MOREOVER MOODY'S SAID IMPROVEMENT IN THE COMPANY'S CREDIT PROFILE WILL LAG THE VERY MODEST OPERATING RECOVERY THE RATING AGENCY EXPECTS TO SEE FOR UNITED AND THE INDUSTRY LONGER TERM HOWEVER UNITED COULD BENEFIT FROM A RECOVERY IN INTERNATIONAL TRAFFIC MOODY'S ADDED STILL GIVEN COMPETITION FROM LOWCOST CARRIERS THE AGENCY SAID UNITED'S LONGTERM PROFITABILITY DEPENDS HEAVILY ON FURTHER REDUCING ITS COST STRUCTURE ABOUT 3 BILLION OF LONGTERM DEBT AND 550 MILLION IN PREFERRED STOCK ARE AFFECTED THE RATING AGENCY SAID MOODY'S SAID THE RATINGS LOWERED FOR UNITED AIRLINES ARE SENIOR SECURED EQUIPMENT TRUST AND PASSTHROUGH CERTIFICATES TO BAA2 FROM BAA1 SENIOR SECURED SHELF REGISTRATION TO P BAA2 FROM P BAA1 SENIOR UNSECURED NOTES AND DEBENTURES TO BAA3 FROM BAA2 MEDIUMTERM NOTES TO BAA3 FROM BAA2 AND INDUSTRIAL REVENUE BONDS TO BAA2 FROM BAA1 AND TO BAA3 FROM BAA2 UAL'S PREFERRED STOCK RATING DROPPED TO BA3 FROM BA2 IN CHICAGO A UAL SPOKESMAN DECLINED TO COMMENT SAYING THE COMPANY HADN'T HAD ENOUGH TIME TO STUDY THE RATING CUTS 9311010018 931101 MARKETING & MEDIA AUTHENTIC FITNESS TO EXPAND STARTING WITH ATHLETICWEAR STORE IN NEW YORK BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AUTHENTIC FITNESS CORP THE SPORTSCLOTHING COMPANY CONTROLLED BY LINDA J WACHNER PLANS A MAJOR EXPANSION OF ITS ATHLETIC APPAREL STORES CAPITALIZING ON THE POPULARITY OF THE SPEEDO SWIMWEAR BRAND AUTHENTIC FITNESS WILL OPEN ITS FIRST NEW YORK STORE TODAY UNDER THE NAME SPEEDO AUTHENTIC FITNESS ON THE STREET LEVEL OF THE COMPANY'S OFFICE IN MIDTOWN MANHATTAN BECAUSE OF THE SUCCESS OF ITS FIRST STORE IN LOS ANGELES AUTHENTIC FITNESS SAID LAST WEEK IT WOULD HAVE A TOTAL OF 10 STORES OPEN BY THE END OF THIS YEAR AND WILL ADD 40 STORES IN 1994 AND 50 IN 1995 THE MANUFACTURER AND MARKETER OF SPEEDO AS WELL AS WHITE STAG SKI APPAREL AUTHENTIC FITNESS IS BETTING ON THE COUNTRY'S CONTINUED INTEREST IN FITNESS AND PERFORMANCETESTED APPAREL AND EQUIPMENT THE STORES WILL FEATURE SPEEDO SWIMWEAR FOR MEN AND WOMEN AS WELL AS BRIGHTLY COLORED LEOTARDS LEGGINGS SHIRTS AND JACKETS WITH A REPLICA OF A TILE INDOOR POOL EMBEDDED IN ITS CEILING THE NEW YORK STORE ON PARK AVENUE WILL SELL AQUATIC SHOES GOGGLES THAT USE A STROBE LIGHT TO COUNT STROKES AND OTHER SWIMMING ACCESSORIES WE'RE OUT TO BECOME THE GAP OF FITNESS SAID MS WACHNER THE CHAIRMAN AND CHIEF EXECUTIVE OF AUTHENTIC FITNESS PEOPLE ARE STILL SWIMMING WALKING AND RUNNING AND WE WANT TO FIT THEIR LIFESTYLES AND ATTITUDES AUTHENTIC FITNESS FORMERLY THE ACTIVEWEAR DIVISION OF WARNACO GROUP INC WAS ACQUIRED IN 1990 BY MS WACHNER AND AN INVESTMENT GROUP SHE IS ALSO CHAIRMAN AND CHIEF EXECUTIVE OF WARNACO A MAKER OF INTIMATE APPAREL MENSWEAR AND ACCESSORIES WHILE AUTHENTIC FITNESS IS EXPANDING IN A RELATIVELY SLUGGISH MARKET FOR APPAREL SALES ANALYSTS ARE GIVING THE STORES HIGH MARKS FOR THEIR FOCUS ON SWIMMING AND AEROBICS SHE'S HOMING IN ON A NICHE AND SHOULD BE ABLE TO GET 100 STORES UP AND RUNNING EASILY SAID THOMAS H TASHJIAN AN ANALYST WITH FIRST MANHATTAN CO IT MAY NOT MATTER ANALYSTS SAID THAT THE FITNESS CRAZE SEEMS TO BE ON THE WANE BRUCE M MISSETT AN ANALYST WITH MORGAN STANLEY & CO SAID PEOPLE MAY TALK MORE THAN THEY WORK OUT BUT PEOPLE STILL LIKE TO THINK THEY CAN BECOME BETTER AND BUY GEAR EVEN IF THEY DON'T USE IT VERY MUCH THE STORE OPENINGS COME AS MS WACHNER'S AUTHENTIC FITNESS HAS BEEN SNAPPING UP SOME OF THE BESTKNOWN SWIMWEAR BRANDS AND ADDING THEM TO THE CORE SPEEDO BUSINESS WHICH REPRESENTED 78 OF THE COMPANY'S 133 MILLION OF REVENUE IN THE FISCAL YEAR ENDED JULY 3 TO BROADEN DISTRIBUTION IN DEPARTMENT AND SPECIALTY STORES AUTHENTIC FITNESS IN SEPTEMBER ACQUIRED THE WORLDWIDE LICENSE TO MAKE AND MARKET OSCAR DE LA RENTA SWIMWEAR LAST MONTH IT ACQUIRED THE ASSETS OF THE CATALINA COLE AND ANNE COLE SWIMWEAR LINES IN A MOVE INTO MASSMARKET RETAILERS THE COMPANY SAID LAST WEEK IT WOULD BEGIN SELLING THE CATALINA MEN'S AND WOMEN'S SWIMWEAR LINES IN ALL WALMART STORES INC LOCATIONS BEGINNING NEXT SPRING WHILE MS WACHNER SAID THE STORES WILL FOCUS PRIMARILY ON AEROBIC GEAR AND SWIMWEAR FOR NOW ANALYSTS EXPECT HER TO USE THE STORES TO ADD MORE MERCHANDISE LINES FOR ACTIVE PEOPLE REMEMBER THAT THE GAP USED TO BE JUST JEANS NOW ITS MAINSTREAM FASHION SAID FIRST MANHATTAN'S MR TASHJIAN ONCE HER FRANCHISE IS ESTABLISHED SHE WILL HAVE SIGNIFICANT OPPORTUNITIES TO SELL A WIDER ASSORTMENT OF MERCHANDISE 9311010017 931101 LEISURE & ARTS TOMORROW'S SONGS TODAY BY TESSA DECARLO SAN FRANCISCO JUST AS FROGS HAVE THEIR CHORUSES AND WHALES HAVE THEIR DOLEFUL SONGS SO FANS OF SCIENCE FICTION AND FANTASY HAVE FILK FILK IS FOLK MUSIC BY AND FOR PEOPLE WHO LOOK TO THE FUTURE NOT THE PAST WHO ARE MORE INTRIGUED BY 22NDCENTURY ASTRONAUTS THAN BY 18THCENTURY SEAFARERS THE PLACE TO HEAR IT IS AT SCIENCEFICTION CONVENTIONS CONS TO DEVOTEES THAT EMPHATICALLY INCLUDES THE WORLD SCIENCE FICTION CONVENTION THE BIGGEST CON OF ALL THE 1993 INCARNATION OF WHICH BROUGHT MORE THAN 7700 FANS TO THIS CITY RECENTLY AROUND THE CLOCK DURING THE SIXDAY EVENT THE CONFERENCE ROOMS SET ASIDE FOR FILKING WERE FILLED WITH PEOPLE LUSTILY SINGING ABOUT COMPUTER CHIPS MYTHOLOGICAL CREATURES TIME TRAVEL AND STAR TREK CHARACTER CAPTAIN KIRK'S WEAKNESS FOR ALIEN WOMEN AT ANY CON YOU'LL FIND FILKERS IN A CROWDED ROOM IN A CORNER IN A HALLWAY SAID JO KELLNER A FILK VIRGIN UNTIL HER BOYFRIEND INTRODUCED HER TO THE GENRE LAST YEAR SOMETIMES THEY'RE CONSIDERED AN UNDESIRABLE ELEMENT BECAUSE THEY DON'T GO TO ANY OF THE CONVENTION EVENTS AND THEY DON'T BUY A LOT THEY JUST WANT TO SLEEP ALL DAY AND SING ALL NIGHT SCIENCEFICTION FANDOM AND ITS SUBSETS INCLUDING FILK ARE A STRANGE AMALGAM OF HIGH INTELLIGENCE AND SOMETIMES UNAPPETIZING WEIRDNESS JUDGING FROM THE CROWD AT WORLDCON 1993 FANS ARE MORE LIKELY THAN MOST PEOPLE TO WEAR THICKLENSED GLASSES AND UNTRIMMED BEARDS TO CONSUME LARGE QUANTITIES OF CANDY AND CAFFEINE AT ALL HOURS AND TO WEIGH SUBSTANTIALLY MORE OR LESS THAN ACTUARIAL NORMS THEY SPEAK THEIR OWN JARGON WEAR ODD CLOTHES FROM RAINBOW SUSPENDERS AND VELVET ROBIN HOOD CAPS TO ELABORATE COSTUMES INSPIRED BY FAVORITE SCIFI OR FANTASY CHARACTERS AND EXPRESS DISDAIN FOR MUNDANES THEIR TERM FOR THE REST OF US WHEN YOU'RE MORE INTELLIGENT AND YOU'VE GOT WEIRDER IDEAS BECAUSE YOUR MIND IS ALWAYS IN QUESTION MODE YOU GET CUT OUT OF THE HERD PRETTY FAST AS ONE OF THE CULLS SAID KATHY MAR A POPULAR FILK COMPOSER AND PERFORMER WE'RE CULLS WHO ARE PROUD OF OUR DIFFERENCE AND HAPPY TO BE WITH OTHERS LIKE OURSELVES FILK HAS BEEN AROUND SINCE AT LEAST THE 50S WHEN A TYPOLADEN CON POSTER ANNOUNCED SCIENCE FICTION FILK MUSIC EVERYONE LEAPED ON IT AS A TERM TO DEFINE THIS MUSIC AS SOMETHING DIFFERENT FROM FOLK SAID MS MAR THE GENRE BEGAN WITH PARODIES OF TRADITIONAL FOLK SONGS FOR EXAMPLE VERSES ABOUT APHRODITE AND HER NIGHTIE SET TO THAT OLD TIME RELIGION OR A REVISION OF THE TITANIC THAT TRANSFORMS THE SHIP INTO A SPACE COLONY CRASHING BACK TO EARTH OH IT WAS SAD WHEN THAT COLONY CAME DOWN IN PEORIA BUT SOON FILKERS WERE ALSO WRITING AND PERFORMING ORIGINAL SONGS ABOUT EVERY CONCEIVABLE FANTASY AND SCIENCEFICTION TOPIC DEALERS AT WORLDCON 1993 OFFERED HUNDREDS OF FILK TAPES AND SONGBOOKS WITH TITLES SUCH AS SONGS FROM UNICORN COUNTRY THE DREAM IS ALIVE MUSIC OF THE SPACE SHUTTLES AND CONSENTING ADULTS OF DARKOVER FROM THE STORIES OF MARION ZIMMER BRADLEY YET WHILE FILK'S LITERATURE IS VAST MOST OF IT IS SELFPUBLISHED AND FILK REMAINS ALMOST COMPLETELY UNKNOWN TO ALL BUT HARDCORE SCIENCEFICTION FANS THERE'S NOBODY I KNOW WHO'S MAKING A LIVING AT FILK EITHER SELLING OR PERFORMING SAID BOB LAURENT WHOSE FILK MAILORDER BUSINESS WAIL SONG GROSSES AROUND 40000 A YEAR NOBODY IS SET UP TO GET EXPOSED MUCH OUTSIDE OF SCIENCEFICTION FANDOM EVEN WITHIN FANDOM FILK IS STRUGGLING TO ASSERT ITS LEGITIMACY AS AN ART FORM ON A PAR WITH SCIENCEFICTION NOVELS AND SUPERREALISTIC PAINTINGS OF DRAGONS AND BOSOMY SPACE CREATURES ONE REASON IS THAT THE AMATEURISM FANS PRIZE WORLDCON IS THE ONLY CONVENTION OF ITS SIZE TO BE ENTIRELY RUN BY VOLUNTEERS IS PARTICULARLY EVIDENT AMONG FILKERS FILKERS HAVE A PARTIALLY DESERVED REPUTATION IN FANDOM AS A BUNCH OF CATERWAULING NOTALENTS SAID MARY CREASEY WHOSE COMPANY RANDOM FACTOR DEALS IN FILK BOOKS AND TAPES THERE ARE SOME HIGHLY TALENTED PERFORMERS AND SONGWRITERS BUT IF YOU WALK INTO A ROOM WHERE FILKING IS GOING ON YOU'RE MORE LIKELY TO HEAR SOMETHING BAD THAN SOMETHING GOOD INDEED FILKERS AT WORLDCON 1993 WERE SERENELY INDIFFERENT TO ISSUES OF COMPOSITIONAL AND VOCAL QUALITY AT BOTH BARDIC FILKS WHERE EVERYONE SITS IN A CIRCLE AND PERFORMS IN SEQUENCE AND CHAOS FILKS WHERE PEOPLE SING WHENEVER THEY'RE SO MOVED ACCOMPLISHED SINGERS AND PAINFUL DRONERS WERE RECEIVED WITH EQUAL WARMTH EVEN THOSE OF US WHO ARE PROFESSIONAL MUSICIANS ARE MORE INTERESTED IN CONTENT THAN IN ACTUAL PERFORMANCE ADMITTED JOE ELLIS A SAXOPHONIST FILK IS STILL VERY EGALITARIAN FILK ALSO OFTEN EXPRESSES A BELIEF IN TECHNOLOGY AND PROGRESS VERY DIFFERENT FROM THE DOUR LUDDISM OF MAINSTREAM TYPES THIS MUSIC AND FANDOM AT LARGE ABSOLUTELY BELIEVES IN THE FUTURE SAID MS MAR SHE HOPES THAT SOON THE REST OF THE WORLD WILL PICK UP ON THIS ASPECT OF FILK WE HAVE THE SCIENCEFICTION LYRICS TO GO WITH THE SCIENCEFICTION VIDEOS ON MTV SHE SAID SOME PEOPLE SEE FILK AS POSSIBLY THE EQUIVALENT OF THE BRITISH INVASION THE EXPLOSION OF THE BEATLES AND OTHER BRITISH GROUPS ONTO US POP CHARTS IN THE 60S IN TERMS OF WHAT IT CAN DO FOR MUSIC BUT FOR NOW FILK REMAINS A WORLD WITHIN A WORLD AND FILKERS' DREAMS OF THE MAINSTREAM SEEM AS DISTANT AS THEIR VISIONS OF SPACE TRAVEL AT AROUND 3 ONE MORNING DURING WORLDCON AS FILKERS IN A WINDOWLESS HOTEL CONFERENCE ROOM CROONED A KATHY MAR BALLAD ABOUT THE FAILURE OF THE SPACE PROGRAM THE POIGNANT LYRICS AND MOURNFUL VOICES ALSO SEEMED TO BE COMMENTING ON FILK ITSELF WE MAY LIVE HERE AND DIE HERE ALONE THE SMALL BAND OF FILKERS SANG I'M WAITING STILL FOR THE DAY WHEN I CAN SING MY SONGS OUT THERE MS DECARLO IS A WRITER IN NAPA VALLEY CALIF 9311010016 931101 MARKETING BY GABRIELLA STERN FOOD COMPANIES SEEM INCAPABLE OF MARKETING ANYTHING TO CHILDREN THAT DOESN'T CONTAIN HEAPS OF SUGAR AND LOTS OF COLORS JUICE DRINKS POPSICLES GELATIN DESSERTS ALL POPULAR WITH KIDS HAVE LONG MADE A POINT OF GIVING CHILDREN TONGUES OF RAINBOW HUES SO IT SHOULDN'T COME AS MUCH SURPRISE THAT MULTICOLORED SUGARY SPRINKLES ARE MAKING AN APPEARANCE IN TRADITIONAL KIDS FOODS SUCH AS BAKED GOODS AND CONFECTIONS THE TWIST IS THAT MARKETERS ARE NOW TRYING TO BROADEN THE APPEAL OF SOME ADULT FOODS TO KIDS BY POURING SPRINKLES ON THEM TAKE DANNON SPRINKL'INS DANNON'S STRATEGY FOR PITCHING YOGURT TO KIDS IS TO PROVIDE A PACKAGE OF SPRINKLES WITH EACH YOGURT CONTAINER THE STRATEGY IS DEVILISHLY CLEVER ALTHOUGH PARENTS WORRY ABOUT THEIR KIDS' SUGAR INTAKE THEY WANT THEM TO EAT YOGURT FOR THE NUTRIENTS I FIGURE THE YOGURT DOES HAVE NUTRITIONAL VALUE AND THE SPRINKLES JUST ADD INCENTIVE FOR THEM TO EAT IT SAYS JEAN STRIEGL A MOTHER OF TWO YOUNGSTERS IN WHITEHALL PA NOW SPRINKLES ARE HEADING FOR THE CEREAL AISLE AS GENERAL MILLS LAUNCHES SPRINKLE SPANGLES CEREAL THE CEREAL COMPOSED OF STARSHAPED CORN PUFFS DOTTED WITH RAINBOWCOLORED SPRINKLES IS AIMED AT CHILDREN AGES TWO TO 11 WHAT KIDS AND MARKETERS CALL SPRINKLES ARE ACTUALLY OLDFASHIONED JIMMIES THE KIND THAT ARE SPRINKLED ON ICECREAM SUNDAES BUT TODAY THEY'RE EVERYWHERE ON SPRINKLED CHIPS AHOY COOKIES ENTENMANN'S PARTY DONUTS DOLLY MADISON CUP CAKES PILLSBURY'S FUNFETTI CUPCAKE AND CAKE MIXES AND KELLOGG'S POP TARTS AND NOW THERE ARE WHAT ELSE DINOSAURSHAPED SPRINKLES THEY CAN BE FOUND IN BETTY CROCKER SUPERMOIST PARTY CAKE MIX WHICH ALSO CONTAINS TINY SUGARY RAINBOW CHIPS RETAILERS ARE WAGING WAR AGAINST PROLIFERATING BRAND VARIETIES ARMED WITH INCREASINGLY ACCURATE SALES INFORMATION THEY'RE PRUNING PRODUCTS IN ORDER TO PROTECT MARGINS EVERY ITEM ON THE SHELF MEANS ADDITIONAL SHIPPING AND WAREHOUSING COSTS TO THE RETAILER POOR PERFORMERS SIMPLY DON'T PAY THIS ACCELERATING EFFORT BY SUPERMARKETS DRUG CHAINS AND MASSMERCHANDISE STORES IS INSTILLING FEAR IN THE HEARTS OF MANUFACTURERS BIGBRAND MAKERS ARE SCRAMBLING TO PROTECT THEIR INTERESTS ON STORE SHELVES BUT THERE ISN'T MUCH THEY CAN DO IN LIGHT OF SCANNER DATA THAT CAN TELL RETAILERS WHAT'S HOT AND WHAT'S NOT MOST VULNERABLE TO RETAILERS' EAGLE EYES ARE PRODUCT CATEGORIES WHERE PRIVATELABEL IMITATIONS ARE MAKING HEADWAY WHERE MORE NEW BRANDS ARE BEING INTRODUCED AND WHERE BRAND LOYALTY IS LOW CATEGORIES SEEING SHARP PRUNING TOILET PAPER AND PAPER TOWELS CAKE MIXES PET FOODS CEREALS COOKING OILS DETERGENTS AND BAR SOAPS SOME STORES ARE CHANGING ABOUT 20 OF THEIR UNITS AND THEY HAVEN'T LOST SALES SAYS CONSULTANT WALT WILLIAMS EXECUTIVE VICE PRESIDENT OF NEO DRUG CHAIN DUANE READE SAYS IT'S AGGRESSIVELY STUDYING SHELF TURNOVER WHEN AN ITEM GETS TO THE SHELF WE GIVE IT A PERIOD OF TIME TO DEVELOP AND IT HAS TO PERFORM BETTER THAN THE BOTTOM 20 OF ITEMS IN THE GROUP OR IT'S SLATED FOR DISCONTINUANCE EARLY ON SAYS GARY CHARBONEAU SENIOR VICE PRESIDENT SALES AND MARKETING FOR EXAMPLE THE CHAIN IS SCRUTINIZING SALES OF COLGATEPALMOLIVE'S TEEN SPIRIT DEODORANT WE INTRODUCED IT TWO OR THREE MONTHS AGO AND MOVEMENT HAS BEEN EXTREMELY SLOW MR CHARBONEAU SAYS WE'LL PROBABLY TRIM SOME VARIETIES IMMEDIATELY AND IF THE REMAINDER DON'T PICK UP OVER THE NEXT THREE MONTHS THEN WE'LL KILL IT ALL LESS IS MORE IN CONSUMERPRODUCT PACKAGING WITH PROLIFERATING BRANDS AND PRIVATE LABELS MAKING SHELF SPACE TIGHTER THAN EVER MAKERS OF HEALTH AND BEAUTY AIDS ARE DOING WHAT THEY CAN TO MAKE THEIR PRODUCTS COMPACT THE NAME OF THE GAME IN RETAILING IS TO GET AS MANY DOLLAR SALES PER SQUARE FOOT ON THE SHELF SAYS CHRISTOPHER HOYT A CONSULTANT WITH RYAN MANAGEMENT GROUP MANUFACTURERS HAVE TO GET INTO THAT THE RESULT DEODORANT BOTTLES MINUS TRADITIONAL EXTERIOR CARDBOARD BOXES SUPERCONCENTRATED DETERGENTS THAT COME IN SMALLER CONTAINERS BUT HANDLE THE SAME NUMBER OF WASH LOADS AS BEFORE HUGGIES AND PAMPERS PACKAGES CONTAINING FEWER DISPOSABLE DIAPERS AND DIAPERS THAT ARE SLIMMER THAN EVER THANKS TO NEW TECHNOLOGY AND THEN THERE'S COLLAPSIBLE TOILET TISSUE PROCTER & GAMBLE RECENTLY INTRODUCED CHARMIN SPACEMAKER TOILETPAPER ROLLS WITH TUBULAR INNER CORES COMPRESSED INSIDE THE PACKAGE WHEN REMOVED FROM THE WRAPPING THE CORE EXPANDS TO REGULARROLL SIZE P&G SAYS AN EIGHTROLL PACK TAKES UP ABOUT THE SAME SPACE AS A REGULAR FOURROLL PACK SMALL CAN BACKFIRE HOWEVER RETAILERS SAY SHOPPERS HESITATE TO BUY CHARMIN SPACEMAKER BECAUSE THEY'RE AFRAID THE ROLLS WON'T SPIN FREELY ON TOILETPAPER HOLDERS P&G INSISTS HOWEVER THAT THE ROLLS POP OUT TO THEIR FULL SOFT SHAPE WITH JUST A QUICK SQUEEZE COMPANIES ALSO LIKE TO CITE ENVIRONMENTAL CONCERNS WHEN INTRODUCING COMPACT PRODUCTS HOWEVER ANALYSTS SAY MARKETERS' PRIMARY OBJECTIVE IS TO PLEASE RETAILERS WHO CONTROL SHELF SPACE AS PRIVATELABEL PRODUCTS CATCH ON A MULTITIERED SYSTEM OF PRICING IS EMERGING WITH SOME RETAILERS SELLING KNOCKOFFS AT AS MANY AS FOUR PRICE LEVELS FROM DEEPLY DISCOUNTED TO SUPER PREMIUM BURGER CHAIN WENDY'S INTERNATIONAL TRYING TO PERPETUATE FOUNDER DAVE THOMAS'S WARMANDFUZZY IMAGE SENDS OUT A PRESS RELEASE ON HOW HE BATTLED SHYNESS THIS AFTER WENDY'S PUBLICIZED HIS EXPERIENCE AS AN ADOPTED CHILD HIS BELATEDLY EARNED HIGHSCHOOLEQUIVALENCY DEGREE AND HIS FIRST SENIOR PROM AT AGE 60 9311010015 931101 ETHNIC FOOD WHETS APPETITES IN EUROPE ENTICING PRODUCERS TO ADD FOREIGN FARE BY CACILIE ROHWEDDER STAFF REPORTER OF THE WALL STREET JOURNAL ETHNIC FOOD WHICH HAS GROWN IN POPULARITY IN THE US IS ALSO TURNING INTO ONE OF EUROPE'S HOTTESTSELLING PRODUCT GROUPS IN GERMANY ALONE SALES OF MEXICAN ASIAN AND SOUTHERN EUROPEAN DISHES ARE GROWING IN DOUBLE DIGITS ACCORDING TO A RECENT STUDY BY NESTLE SA THE SWISS FOOD CONCERN UK ETHNIC FOOD REPORT A SURVEY OF THE BRITISH MARKET BY MARKET RESEARCH FIRM LEATHERHEAD FOOD RA SAID EXOTIC FOODS NOT INCLUDING ITALIAN SPANISH AND GREEK SPECIALTIES GREW 100 BETWEEN 1988 AND 1992 IN OTHER EUROPEAN MARKETS TOO FOOD PRODUCERS INCREASINGLY ADD FOREIGN FARE TO THEIR PRODUCT RANGES WE CLEARLY NOTICE A TENDENCY TO SPICINESS SAID JEANCLAUDE JAMAR MANAGING DIRECTOR AT HJ HEINZ CO'S EUROPEAN OPERATIONS PEOPLE TAKE MORE TRIPS ABROAD THERE ARE MORE FOREIGN RESTAURANTS AND THERE'S SOMETHING LIKE A COLONIAL CULTURE WITH OLD RECIPES ALL OF THIS GIVES SOME IMPETUS FOR MORE SPICY FOOD RETAILERS TEND TO WELCOME ETHNIC FOODS FOR THEIR TRENDY IMAGE HIGH PROFIT MARGINS AND STRONG SALES PREMIUMPRICED READYTOEAT MEALS MAKE UP A LARGE PORTION OF THE ETHNIC FOOD SEGMENT AND THE ETHNIC RECIPES TEND TO BE EVEN MORE EXPENSIVE THAN TRADITIONAL DISHES AT A BELGIAN SUPERMARKET FOR INSTANCE THE INDONESIAN BAMI GORENG OR INDIAN MADRAS CURRY VARIETIES OF UNILEVER NV'S PRONTO FROZENFOOD LINE COST 139 BELGIAN FRANCS 380 COMPARED WITH 115 FRANCS 314 FOR LESS EXOTIC LASAGNA OR MOUSSAKA VERSIONS IN 13 OF 22 PRODUCT CLASSES MORE THAN HALF OF THE GERMAN RETAILERS SURVEYED BY NESTLE SAID ETHNIC FOODS YIELD HIGHER PROFIT MARGINS THAN LOCAL CUISINE MANY RETAILERS SAID PRODUCTS SUCH AS CAPPUCCINO ESPRESSO OLIVE OIL READYTOEAT MEALS OR EXOTIC FRUITS OFFER THE RARE COMBINATION OF HIGH MARGINS AND STRONG VOLUME GROWTH AT THE SAME TIME THESE PRODUCTS TEND TO GROW MORE SAID A SPOKESMAN FOR GERMANY'S HERTIE AG A CHAIN OF DEPARTMENT STORES WITH LARGE GROCERY DEPARTMENTS BUT HE ADDED THAT THE TREND IS MORE PRONOUNCED IN LARGE CITIES ETHNIC FOOD IS ALSO MORE POPULAR AMONG YOUNG CONSUMERS FOR INSTANCE OF THE 2000 GERMANS POLLED FOR NESTLE 32 OF SHOPPERS YOUNGER THAN 35 SAID THEY WERE ENTHUSIASTIC ABOUT FOREIGN FOOD COMPARED WITH ONLY 6 OF THOSE OVER 55 APPETITE FOR ETHNIC FOOD ALSO VARIES AMONG EUROPEAN COUNTRIES MARJORIE BROWN OPERATIONS MANAGER WITH BRUCE FOODS CORP'S EUROPEAN SUBSIDIARY SAID THE COMPANY'S CASA FIESTA MEXICAN FOOD BRAND IS SELLING BEST IN COUNTRIES WITH LESSDEVELOPED NATIONAL CULINARY CULTURES BOTH CASA FIESTA AND OLD EL PASO THE RIVAL BRAND BY ST LOUISBASED PET INC ARE PARTICULARLY SUCCESSFUL IN BRITAIN AND SCANDINAVIA FRANCE AND GERMANY HAVE THEIR OWN CUISINE THEY ARE MORE INSULAR MS BROWN ASSERTED THE TEXMEX CRAZE IS ALSO BENEFITING BEVERAGE MAKERS TEQUILA IS A RARE EXCEPTION TO GENERALLY STAGNATING SPIRITS SALES AND MEXICAN BEERS ARE CONQUERING A PERMANENT PLACE IN BARS AND SUPERMARKETS EUROPEAN SALES OF CORONA EXTRA FOR INSTANCE INCREASED 45 LAST YEAR AFTER A 350 JUMP IN 1991 ONE YEAR AFTER THE PRODUCT WAS INTRODUCED IN EUROPE CERVECERIA MODELO SA CORONA'S MEXICAN PRODUCER EXPLAINS THE BEER'S APPEAL WITH BOTH TRENDINESS AND A LOWER CALORIE CONTENT ON AVERAGE CORONA COSTS TWICE AS MUCH AS A BOTTLE OF DOMESTIC BEER CHRISTOPHER WICKHAM A BEVERAGE ANALYST WITH LEHMAN BROTHERS INTERNATIONAL SAID MANY CONSUMERS CAN AFFORD SUPERPREMIUM PRODUCTS BECAUSE THEY'RE CUTTING BACK ON ALCOHOL IN GENERAL INDUSTRY EXPERTS SAY THE SUCCESS OF MEXICAN FOOD MIGHT EVEN BE TOPPED BY ASIAN DISHES THE UK ETHNIC FOOD REPORT PREDICTS THE MEXICAN FOOD SEGMENT WILL GROW 40 BEFORE 1995 CHINESE AND INDIAN PRODUCTS ARE EXPECTED TO INCREASE 25 WHILE THAI INDONESIAN AND MALAYSIAN SPECIALTIES ARE EXPECTED TO DOUBLE OVER THE SAME PERIOD THAI FOOD IS ABSOLUTELY TAKING OFF SAID ALLYSON STEWART AT ALLYSON ASSOCIATES INTERNATIONAL CONSULTANTS IN LONDON FRENCH AND ITALIAN IS SO CLOSE TO HOME THAT IT'S NOT EXOTIC ANYMORE SHE EXPLAINED MANUFACTURERS ARE QUICK TO CAPITALIZE ON EUROPEANS' GROWING TASTE FOR ASIAN FOOD AN AVERAGE BELGIAN SUPERMARKET ALREADY SELLS FOUR KINDS OF SHRIMPFLAVORED KROEKPOEK CHIPS FROM INDONESIA NESTLE RECENTLY OPENED A FACTORY IN CHINA TO PRODUCE DIMSUM DUMPLINGS THE COMPANY ALSO ADDED A TASTE OF ASIA LINE TO ITS FINDUS FROZENFOOD RANGE AND MASTERFOODS A DIVISION OF MARS INC IS PLANNING TO LAUNCH A THAISTYLE HOT SATAY SAUCE AND INDONESIAN BAMI PANGANG ON THE BRITISH MARKET ONLY A YEAR AFTER ITS ORIENTALSTYLE SUZY WAN BRAND WAS INTRODUCED THERE WITH ITS EMPHASIS ON FISH AND VEGETABLES FAR EASTERN CUISINE BENEFITS FROM A HEALTHY IMAGE IN EUROPE STEFAN RIEDERER VON PAAR A 29YEAROLD ENGINEERING STUDENT FROM AACHEN GERMANY SAYS FOR THAT REASON CHINESE FOOD IS ONE OF THE FEW THINGS HE COOKS JUST FOR HIMSELF MR RIEDERER HAS HAD A WOK COOKING PAN FOR SEVERAL YEARS BUT SAID HE ALSO LIKES TO BUY SUPERCHEAP DRY SOUPS OR CHINESE NOODLE MIXES MARKETERS SAY THE KEY INGREDIENT TO SUCCESS WITH ETHNIC RECIPES IS EDUCATING CONSUMERS MOST NEW PRODUCTS ARE ACCOMPANIED BY INSTOREDEMONSTRATIONS AND COOK BOOKS SDV SA A FRENCH IMPORTER OF AMERICAN MEXICAN AND INDIAN FOODS ALSO REDESIGNS THE GOODS' PACKAGING AND TRANSLATES FOREIGN MEASUREMENTS INTO FRENCH UNITS YOU CAN'T JUST PUT A STICKER ON A FOREIGN PRODUCT SAID PATRICK KIERANS MARKETING MANAGER AT PATAK SPICES LTD A BRITISH PRODUCER OF INDIAN RECIPES THAT RECENTLY BEGAN EXPORTING TO FRANCE YOU NEED A NEW MARKETING APPROACH THAT'S APPROPRIATE AND APPEALING HE SAYS PATAK IS STRUGGLING AGAINST THE COMMON MISCONCEPTION THAT ALL INDIAN FOOD IS HOT 9311010014 931101 LETTERS TO THE EDITOR THE RARE CONTRALTO IN REGARD TO YOUR OCT 6 LEISURE & ARTS PIECE BIDDING FOR A PIECE OF COUTURE HISTORY I ENJOYED READING ABOUT THE WILLIAM DOYLE GALLERIES COUTURE AUCTION BUT I MUST CORRECT THE COMMENT ABOUT MARIAN ANDERSON WHOSE EVENING COAT YOUR WRITER SOUGHT TO BUY MS ANDERSON WAS A GREAT HUMAN BEING AND A GREAT SINGER BUT HARDLY A GREAT COLORATURA SHE WAS AT THE VERY OPPOSITE END OF THE VOCAL SPECTRUM A CONTRALTO THE DEEPEST AND RAREST OF WOMEN'S VOICES 9311010013 931101 CREDIT MARKETS OHIO CASE SIGNALS BACKLASH AGAINST EXOTIC MORTGAGES BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL INVESTOR DISCONTENT WITH MORTGAGEBACKED SECURITIES IS GROWING A RECENT UPROAR IN OHIO MAY BE ONLY THE START OF A BROADER INVESTOR BACKLASH AGAINST THE MORE EXOTIC TYPES AND THE WAY THEY WERE SOLD LOCAL GOVERNMENTS IN OHIO ARE FURIOUS OVER A SERIES OF RECENT AUDITS DISCLOSING THAT THEY WERE BIG LOSERS IN THE ESOTERIC CORNER OF THE MORTGAGESECURITIES REALM KNOWN AS INTERESTONLY STRIPS ALREADY THE LOSSES HAVE SPAWNED A LAWSUIT AND HAVE RAISED THE PROSPECT OF A BAN ON IO INVESTMENTS IN OHIO SEEKING TO PREVENT FUTURE LOSSES OHIO'S ATTORNEY GENERAL DETERMINED LAST WEEK THAT MORTGAGEBACKED SECURITIES ISSUED BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION WERE UNSUITABLE INVESTMENTS FOR THE OPERATING FUNDS OF MANY MUNICIPALITIES AND SCHOOL DISTRICTS MOREOVER THE STATE AUDITOR IS EXPECTED TO ASK THE ATTORNEY GENERAL LEE FISHER TO DECLARE THAT INVESTMENTS IN IOS ARE ILLEGAL UNDER OHIO'S CURRENT INVESTMENT GUIDELINES THE LOSSES THAT HAVE SURFACED TO DATE PERHAPS 10 MILLION IN A DOZEN OHIO PORTFOLIOS MAY FORESHADOW YETUNDISCOVERED MUNICIPAL LOSSES ACROSS THE COUNTRY FROM FLORIDA TO WASHINGTON STATE ACCORDING TO MEMBERS OF THE NATIONAL MUNICIPAL TREASURERS ASSOCIATION THESE TREASURERS WOULDN'T KNOW AN IO FROM A BANKERS' ACCEPTANCE SAID ROD RIDGE CHAIRMAN OF THE ASSOCIATION'S INVESTMENT POLICY COMMITTEE HE SAID OTHER STATES ARE LIKELY TO FOLLOW OHIO'S EXPECTED BAN ON IO INVESTMENTS OHIO'S PROBLEMS CAME TO LIGHT DURING ROUTINE AUDITS BEGUN LAST SPRING OF INVESTMENTS MADE DURING 1991 AND 1992 WE EXPECT TO FIND LOSSES IN SCORES OF ENTITIES BY THE TIME THE AUDITS ARE COMPLETED LATER THIS YEAR SAID A SPOKESMAN FOR THOMAS E FERGUSON OHIO'S AUDITOR MR FERGUSON'S OFFICE IS RESPONSIBLE FOR AUDITING ABOUT 2600 MUNICIPALITIES COUNTIES TOWNSHIPS AND SCHOOL DISTRICTS WITH COMBINED OPERATING BUDGETS OF ABOUT 16 BILLION MORTGAGEBACKED SECURITIES IN GENERAL HAVE BEEN DISAPPOINTING PERFORMERS LATELY THE SALOMON BROTHERS MORTGAGEBACKED SECURITIES INDEX HAS RETURNED JUST 607 FOR THE YEAR TO DATE COMPARED WITH 810 FOR US TREASURY DEBT WITH AN AVERAGE MATURITY OF FIVE YEARS AND 1113 FOR TREASURY SECURITIES OVERALL CERTAIN MORTGAGEBACKED SECURITIES HOWEVER HAVE FARED FAR WORSE INTERESTONLY STRIPS WHICH ENTITLE THE INVESTOR TO RECEIVE A STREAM OF ONLY INTEREST PAYMENTS FROM THE UNDERLYING MORTGAGES HAVE LOST HALF THEIR VALUE AS LOW INTEREST RATES SPARKED FOUR REFINANCING WAVES IN THE PAST TWO YEARS THERE ARE SIGNS THAT SMALL INVESTORS ARE BACKING AWAY SO FAR THIS YEAR SALES OF MORTGAGEBACKED SECURITIES TO INDIVIDUALS HAVE DROPPED 35 AT EDWARD D JONES A ST LOUIS FIRM SERVING SMALL INVESTORS SEPARATELY AS PREVIOUSLY REPORTED AN INVESTOR IN HYPERION 1999 TERM TRUST LAST MONTH INITIATED A LAWSUIT WHICH SEEKS CLASSACTION STATUS AGAINST THE CLOSEDEND MORTGAGE SECURITIES FUND WHOSE SHARES DROPPED MORE THAN A THIRD AS A RESULT OF HEAVY IO HOLDINGS HYPERION CAPITAL MANAGEMENT INC WHICH MANAGES THE FUND HAS SAID THAT IT BELIEVES THE SUIT IS MERITLESS AND THAT IT INTENDS TO CONTEST THE ALLEGATIONS PUBLIC INVESTMENT FUNDS HAVE BEEN BIG INVESTORS IN MORTGAGEBACKED SECURITIES PUBLIC FUNDS HOLD 115 BILLION OF THE 13 TRILLION OF MORTGAGEBACKED SECURITIES OUTSTANDING ACCORDING TO JOHN LEWIS EDITOR OF INSIDE MORTGAGE SECURITIES A NEWSLETTER STATE AND LOCAL GOVERNMENTS HOLD 26 BILLION IN COLLATERALIZED MORTGAGE OBLIGATIONS OR CMOS THE OFTENVOLATILE SECURITIES CREATED BY CARVING UP THE CASH FLOWS OF TRADITIONAL MORTGAGE SECURITIES THE LOSSES IN OHIO RESULT MAINLY FROM INVESTMENTS IN INTERESTONLY STRIPS OHIO'S SANDUSKY COUNTY FOR EXAMPLE PUT AT LEAST 56 MILLION OF ITS 20 MILLION INVESTMENT PORTFOLIO INTO IOS ISSUED BY FANNIE MAE AN INVESTMENT THAT WAS SOLD IN MARCH AT A 15 MILLION LOSS LEADING WALL STREET UNDERWRITERS PLAYED DOWN THE SIGNIFICANCE OF THE OHIO LOSSES IT'S A LOT BETTER THAN IT COULD HAVE BEEN SAID NATHAN KORNFELD A LEHMAN BROTHERS MANAGING DIRECTOR OF THE LOSSES IN SANDUSKY COUNTY THE OHIO LAWSUIT WAS FILED IN US DISTRICT COURT IN TOLEDO BY SANDUSKY COUNTY AND ITS TREASURER VIRGIL SWARTZLANDER AGAINST GOVERNMENT SECURITIES CORP THE HOUSTON FIRM THAT SOLD THE IOS A BROKER AT THE FIRM AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP AN EQUITABLE COS UNIT THAT ACTED AS CLEARINGHOUSE FOR GOVERNMENT SECURITIES CORP THE COMPLAINT ALLEGES THAT JAMES WINTER THE GOVERNMENT SECURITIES CORP BROKER NEVER SENT MR SWARTZLANDER ANY OF ITS LITERATURE HIGHLIGHTING THE RISK IN IOS BUT INSTEAD TOLD HIM THAT THE SECURITIES WERE GOVERNMENTBACKED OR GOVERNMENTISSUED ALTHOUGH FANNIE MAE DOES PROVIDE A GUARANTEE AGAINST DEFAULT IT IS A STOCKHOLDEROWNED COMPANY AND AN INVESTOR CAN LOSE HEAVILY IN A SECURITY EVEN IF THERE ISN'T A DEFAULT WHEN MR SWARTZLANDER NOTICED THE VALUE OF HIS SECURITIES DROPPING THE SUIT ALLEGES MR WINTER TOLD HIM THAT THE VALUE WOULD REBOUND AND HE WOULDN'T LOSE MONEY IN FACT IOS DROP IN VALUE WHEN THE MORTGAGES PROVIDING THE STREAM OF PAYMENTS ARE REFINANCED AND CEASE TO EXIST AS A HEDGE AGAINST THE DECLINING VALUE MR WINTER URGED THE COUNTY TO BUY FANNIE MAE INVERSE IOS WHOSE VALUE WOULD RISE AS RATES FELL ACCORDING TO THE SUIT INSTEAD THE SUIT ALLEGES THE INITIAL AUDIT IN APRIL 1993 INDICATED THAT THE VALUE OF THE INVERSE IOS WAS FAR BELOW WHAT THE COUNTY BELIEVED IT TO BE FRANK KLAUS EXECUTIVE VICE PRESIDENT OF GOVERNMENT SECURITIES CORP DECLINED TO COMMENT BUT A LAWSUIT FILED BY THE FIRM AGAINST THE COUNTY BOARD IN US DISTRICT COURT IN HOUSTON ALLEGES THAT THE COUNTY DOUBLED UP ITS BETS IN 1993 TO TRY TO RECOUP EARLIER IO LOSSES WHILE FAILING TO RECOGNIZE THE LOSSES IN ITS BOOKS THE LAWSUIT SEEKS A DECLARATORY JUDGMENT CLEARING IT OF WRONGDOING AND AN INJUNCTION BARRING THE COUNTY FROM MAKING COMPLAINTS TO THE NATIONAL ASSOCIATION OF SECURITIES DEALERS THE TEXAS SECURITIES BOARD OR ANY OTHER REGULATORY AGENCY PRICES OF US TREASURY SECURITIES POSTED MODERATE LOSSES FRIDAY WEIGHED DOWN BY A FLOOD OF NEW TWO AND FIVEYEAR NOTES AND SIGNS OF IMPROVING ECONOMIC ACTIVITY THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 1/4 POINT OR MORE THAN 250 FOR A BOND WITH 1000 FACE VALUE TO 103 27/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 596 FROM 594 TRADERS SAID ACTIVITY WAS LIGHT DESPITE A NUMBER OF ECONOMIC REPORTS RELEASED AT MIDMORNING INCLUDED IN THE ECONOMIC NEWS WERE DATA INDICATING IMPROVED MANUFACTURING ACTIVITY IN THE CHICAGO AREA AND MODERATE GAINS IN PERSONAL INCOME AND SPENDING FOR SEPTEMBER ANALYSTS SAID THE REPORTS WERE CONSISTENT WITH OTHER RECENT REPORTS SHOWING A FASTER PACE OF ECONOMIC GROWTH NERVOUSNESS OVER EXACTLY HOW QUICKLY THE ECONOMY WILL GROW THROUGH THE END OF THIS YEAR HAS BEEN THE PRIMARY REASON FOR THE HALT IN THE BOND MARKET'S RALLY BOND INVESTORS DREAD RAPID ECONOMIC GROWTH BECAUSE IT CAN LEAD TO HIGHER INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN ANOTHER CAUSE OF CONSTERNATION IS THIS FRIDAY'S RELEASE OF THE EMPLOYMENT REPORT FOR OCTOBER THE FIRST OFFICIAL LOOK AT THE STATE OF THE ECONOMY LAST MONTH WHILE THE MARKET STRUGGLES TO CONTEND WITH STRONGER ECONOMIC NEWS IT IS ALSO FACING INCREASED SUPPLY DEALERS WERE STILL IN THE PROCESS OF TRYING TO DISTRIBUTE THE NEW TWO AND FIVEYEAR NOTES SOLD EARLIER IN THE WEEK BOTH OF WHICH ENDED THE WEEK DOWN FROM THEIR AUCTION PRICE LEVELS MANY ON WALL STREET ALSO TURNED THEIR ATTENTION TO THE COMING QUARTERLY REFUNDING AUCTIONS OF THREEYEAR AND 10YEAR NOTES SLATED TO BE HELD IN THE SECOND WEEK OF NOVEMBER THE TREASURY IS SCHEDULED TO ANNOUNCE THE TERMS OF THE REFUNDING AUCTIONS WEDNESDAY AFTERNOON 9311010012 931101 REVIEW & OUTLOOK EDITORIAL ASIDES LIBERALS AND INCENTIVES WE LOVE HOW TAXAHOLICS LIKE KEVIN PHILLIPS KEEP ANNOUNCING SUPPLYSIDE TAX CUTS AS DEAD JUST FRIDAY DESPERATE DAVID DINKINS ANNOUNCED KIDDER WAS STAYING IN NEW YORK CITY AFTER GETTING A 30 MILLION TAX BREAK AND AFTER BROWN BROTHERS HARRIMAN HAD ALREADY FLED TO A TAX HAVEN IN JERSEY CITY AVERAGE JOES MIGHT APPRECIATE THE SAME TAX DEAL BUT NEW YORK LIBERALS AREN'T TOTALLY IGNORANT OF THE INCENTIVE EFFECTS OF TAX POLICY 9311010011 931101 KENDALL'S CHIEF SOLD 50000 OF HIS SHARES SALE FOLLOWED ROSY FORECAST FOR FISCAL 3RD QUARTER WHICH ENDED WITH LOSS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL KENDALL SQUARE RESEARCH CORP'S PRESIDENT SOLD SHARES IN LATE AUGUST VALUED AT 1 MILLION SOON AFTER FORECASTING A STRONG FISCAL THIRD QUARTER WHICH THE COMPUTER MAKER NOW SAYS ENDED WITH A LOSS DISCLOSURE OF THE UNEXPECTED LOSS AND REVENUE SHORTFALL IN THE QUARTER ENDED SEPT 25 SENT KENDALL SQUARE'S STOCK PRICE INTO A TAILSPIN FRIDAY ON VERY HEAVY VOLUME IT FELL 32 OR 7875 TO CLOSE AT 16375 ON NATIONAL OVERTHECOUNTER TRADING OF 34 MILLION SHARES TWO PEOPLE CLOSE TO THE COMPANY SAY ITS AUDITORS ARE TAKING A HARD LOOK AT THIRDQUARTER SALES AND MAY NOT ALLOW SOME OF THEM TO BE RECOGNIZED IN THE PERIOD KENDALL SQUARE WHICH HAS BEEN CRITICIZED BY SOME ANALYSTS FOR AGGRESSIVE SALESRECOGNITION POLICIES AND FOR CARRYING A HIGH LEVEL OF RECEIVABLES HAS IN THE PAST SAID THAT ITS ACCOUNTING MET GENERALLY ACCEPTED PRACTICES THE COMPANY SAID LAST WEEK THAT WHILE SHIPMENTS DURING THE QUARTER WERE GENERALLY IN LINE WITH EXPECTATIONS REVENUE FROM THESE SHIPMENTS THAT CAN BE INCLUDED IN THE THIRDQUARTER RESULTS IS SUBJECT TO FURTHER REVIEW THE STOCK SALES BY HENRY BURKHARDT PRESIDENT CHIEF EXECUTIVE OFFICER AND A FOUNDER OF THE COMPANY ARE CITED IN A LAWSUIT FILED LATE FRIDAY IN A FEDERAL COURT IN BOSTON THE COMPLAINT FILED BY THREE HOLDERS ALLEGES THAT KENDALL SQUARE DIDN'T FOLLOW ACCOUNTING RULES AND SEEKS CERTIFICATION AS A CLASS ACTION ON BEHALF OF KENDALL SQUARE SHAREHOLDERS IT ALSO ALLEGES REPEATED FALSE AND MISLEADING STATEMENTS WERE MADE BY OFFICERS AND DIRECTORS AMONG OTHERS NAMED IN THE SUIT IS WILLIAM I KOCH KENDALL SQUARE'S CHAIRMAN AND LARGEST SHAREHOLDER MR KOCH ALSO IS CHIEF EXECUTIVE OFFICER OF THE OXBOW GROUP AN ENERGY MANUFACTURING AND REALESTATE COMPANY AND WAS SKIPPER OF THE WINNING ENTRY FOR THE 1992 AMERICA'S CUP YACHTING TROPHY A SPOKESMAN FOR KENDALL SQUARE BASED IN WALTHAM MASS SAID ITS EXECUTIVES HAVEN'T SEEN THE SUIT AND THAT MR BURKHARDT WASN'T AVAILABLE THE SPOKESMAN CONFIRMED THAT MR BURKHARDT SOLD THE SHARES IN AUGUST THE TOUGHER STANCE ON REVENUE RECOGNITION FOR THE THIRD QUARTER COINCIDES WITH THE ARRIVAL THIS QUARTER OF A NEW PARTNER FROM PRICE WATERHOUSE TO HANDLE THE COMPANY'S AUDIT ONE OF THE PEOPLE CLOSE TO KENDALL SQUARE SAID THIS INDIVIDUAL SAID THE AUDITOR IS QUESTIONING CERTAIN SALES THAT WERE MADE WITH A PROVISION THAT THEY COULD BE UPGRADED TO A NEW GENERATION OF MORE POWERFUL COMPUTER SYSTEMS TO BE ANNOUNCED BY THE COMPANY TOMORROW MR BURKHARDT'S STOCK SALES TOTALED 50000 SHARES OVER FOUR DAYS IN LATE AUGUST TWO WEEKS AFTER HE PUBLICLY ENDORSED WALL STREET ESTIMATES OF A STRONG THIRDQUARTER THE SPOKESMAN SAID THE SALES WERE THE FIRST EVER BY MR BURKHARDT AND REPRESENTED ONLY A SMALL PART OF HIS HOLDINGS ACCORDING TO A PROXY STATEMENT DATED MAY 5 BEFORE THE LATEST STOCK SALES MR BURKHARDT OWNED 378645 SHARES OR 27 OF THOSE OUTSTANDING IN THE DISCLOSURE THAT SPARKED FRIDAY'S SELLOFF KENDALL SQUARE WARNED OF THE LOSS AND ESTIMATED THAT REVENUE WAS SUBSTANTIALLY BELOW EXPECTATIONS IN AUGUST MR BURKHARDT SAID THAT THE COMPANY WOULD EARN BETWEEN NINE CENTS AND 13 CENTS A SHARE IN THE YEAR EARLIER QUARTER THE COMPANY POSTED A LOSS OF 33 MILLION OR 29 CENTS A SHARE ON REVENUE OF 53 MILLION IT POSTED A PROFIT FOR EACH OF THE FOLLOWING THREE QUARTERS THE COMPANY ALSO SAID LAST WEEK THAT GEORGE MCCLELLAND SENIOR VICE PRESIDENT CHIEF ADMINISTRATIVE OFFICER AND TREASURER HAD RESIGNED MR MCCLELLAND WHO COULDN'T BE REACHED FOR COMMENT JOINED THE COMPANY A MONTH EARLIER FROM FIDELITY INVESTMENTS A UNIT OF FMR CORP WHERE HE WAS A SENIOR MANAGER KENDALL SQUARE WHICH IS PUSHING A NEW COMPUTINGDESIGN CONCEPT INTO COMMERCIAL MARKETS HAD BEEN REPORTING STRONG GROWTH IN SALES WHICH WERE EXPECTED TO JUMP TO 60 MILLION THIS YEAR FROM 20 MILLION LAST YEAR BEFORE FRIDAY'S ROUT ITS SHARE PRICE HAD MORE THAN DOUBLED SINCE THE INITIAL PUBLIC STOCK OFFERING LAST YEAR 9311010010 931101 TECHNOLOGY COMPAQ IS ROLLING OUT 46 NEW MODELS BEEFING UP STRATEGY OF TARGETED BRANDS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL THE PC GIANT IN HOUSTON PLANS TO INTRODUCE 46 NEW MODELS INCLUDING A NEW FAMILY OF HIGHPERFORMANCE MACHINES RUNNING ON INTEL CORP'S POWERFUL NEW PENTIUM MICROPROCESSOR MOST OF COMPAQ'S NEW PCS THOUGH SIMPLY FILL OUT ITS EXISTING PRODUCT LINES SUCH AS ITS PRESARIO FAMILY OF HOME COMPUTERS AND ITS PROLINEA LINE NOW TARGETED AS AN ENTRYLEVEL BUSINESS MACHINE WITH THE NEW MODELS WHICH FEATURE DIFFERENT BLENDS OF PRELOADED SOFTWARE AND A RANGE OF MEMORY NETWORKING AND MULTIMEDIA OPTIONS COMPAQ LIKE MOST OF ITS RIVALS IS HOPING TO TARGET ITS DIFFERENT BRANDS FOR DIFFERENT CUSTOMERS GONE ARE THE DAYS WHEN COMPUTER COMPANIES CAN SELL ONE BASIC CHASSIS WITH A HANDFUL OF SNAPPEDON ACCESSORIES THE EXPLOSION OF PCS IN MASSMARKET RETAILING AND THE LONGAWAITED ARRIVAL OF THE MACHINES IN AMERICAN HOMES HAS FORCED COMPUTER COMPANIES TO OFFER A WIDER RANGE OF CHOICES INDEED ANALYSTS SAY PC MAKERS ARE NOW HAVING TO ADOPT MANY OF THE SOPHISTICATED BRANDING AND MARKETING TECHNIQUES OF THE PACKAGED GOODS OR AUTOMOBILE INDUSTRIES WHICH HAVE MANAGED TO CONVINCE CONSUMERS THAT THE NAME ON THE CEREAL BOX MATTERS OR THAT THERE ARE SHARP DIFFERENCES BETWEEN STATION WAGONS AND SPORTS CARS EVEN THOUGH BOTH MAY BE PRODUCED BY THE SAME COMPANY THE COMPUTER PEOPLE ARE STARTING TO DISCOVER THE TYPES OF THINGS THAT PACKAGED GOODS PEOPLE HAVE KNOWN FOR YEARS SAID GREG TITUS MARKETING DIRECTOR AT INTERNATIONAL DATA GROUP A TECHNOLOGY RESEARCH CONCERN IN BOSTON THEY ARE FINDING THAT BRANDS MATTER MR TITUS SAID A RECENT SURVEY FOR HIS COMPANY INDICATES THAT MORE THAN A QUARTER OF PC BUYERS KNOW WHICH BRAND THEY WILL BUY BEFORE THEY EVEN START SHOPPING FOR A PC AN ADDITIONAL 22 HAVE NARROWED THEIR CHOICE TO TWO BRANDS IN RESPONSE NEARLY EVERY MAJOR PC COMPANY HAS WORKED TO BEEF UP ITS BRAND STRATEGY DELL COMPUTER CORP FOR INSTANCE ANNOUNCED IN AUGUST THAT IT WILL TAILOR ITS NEW PRODUCTS TO DIFFERENT CUSTOMER GROUPS DELL IN AUSTIN TEXAS EVEN WENT AS FAR AS LABELING THE VARIOUS SEGMENTS WHICH INCLUDED SOPHISTICATED PC USERS CALLED TECHNOWIZARDS AND HOME USERS OR TECHNOTOGO CUSTOMERS WHO WANTED SOMETHING THAT WAS EASY TO ASSEMBLE OUT OF THE BOX INTERNATIONAL BUSINESS MACHINES CORP MEANTIME IS SELLING AN AMBRA LINE FOR PC SOPHISTICATES AS WELL AS ITS VALUEPOINT AND PS/1 PRODUCTS FOR MORE NOVICE USERS WE HIT A POINT SOMEWHERE WHERE YOU COULD NO LONGER JUST PUT OUT A BASIC TECHNOLOGY BOX SAID MICHAEL COLEMAN VICE PRESIDENT OF MARKETING IBM THERE ARE DIFFERENT SEGMENTS TO A MARKET COMPAQ'S NEW PRODUCTS SIGNAL A SHIFT IN THE WAY IT MARKETS ITS MACHINES THE COMPANY'S PROLINEA LINE A HOME RUN FOR THE COMPANY LAST YEAR NO LONGER IS BEING PITCHED AS A FIRSTTIME HOME PC THAT ROLE IS BEING FILLED BY THE TWOMONTHOLD PRESARIO WHICH COMPAQ LAST WEEK SAID HAS ECLIPSED PROLINEA AS THE BESTSELLING NEW PRODUCT IN ITS HISTORY THE LINE OF NEW MACHINES OUT TODAY INCLUDES 10 NEW PRESARIO PCS INCLUDING MACHINES WITH MULTIMEDIA FEATURES LIKE A BUILTIN SOUND AND VIDEO ENCYCLOPEDIA THAT START IN PRICE AT 1649 NEW PROLINEA MODELS MEANTIME ARE LOADED WITH BUILTIN PC NETWORKING CAPABILITIES AND START AT 1349 BOB BAUER A COMPAQ MARKETING MANAGER SAYS THE NEW FOCUS ON INTRICATE BRANDING IS FAR FROM OVER MR BAUER FOR INSTANCE SEES COMPAQ OFFERING DIFFERENT FLAVORS OF MACHINES FOR DIFFERENT RETAILERS THE COMPANY COULD MAKE ONE MACHINE FOR WAREHOUSE CLUBS THEN MARKET AN ENTIRELY DIFFERENT MODEL FOR COMPUTER SUPERSTORES WE WILL MOVE MORE AND MORE TOWARD PROVIDING INDIVIDUAL BRANDS HE SAYS 9311010009 931101 AMERICAN AIR STRIKE LOOMS AS TALKS FAIL BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL TALKS OVER A NEW CONTRACT BETWEEN AMERICAN AIRLINES AND ITS FLIGHT ATTENDANTS UNION FOUNDERED AND THE AMR CORP UNIT SAID IT WILL IMPOSE ITS LATEST OFFER ON ITS 21000 FLIGHT ATTENDANTS EFFECTIVE TODAY AT THE SAME TIME LEADERS OF THE ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS SAID THEY WERE STEPPING UP PREPARATIONS FOR A STRIKE THEY HAVE SCHEDULED FOR ON OR BEFORE NOV 22 THE WEEK OF THANKSGIVING DAY ONE OF THE BUSIEST TRAVEL TIMES OF THE YEAR MORE IMMEDIATELY HOWEVER APFA PRESIDENT DENISE HEDGES CALLED FOR A BOYCOTT OF AMERICAN AIRLINES STARTING THIS WEEK AND SAID UNION WORKERS WOULD BEGIN STAFFING PICKET LINES WHERE AMERICAN HAS ITS MAJOR OPERATIONS AT THE SAME TIME SHE SAID UNION MEMBERS WILL CALL ON TRAVEL AGENCIES TO URGE THEM NOT TO BOOK FLIGHTS ON AMERICAN NO NEW TALKS ARE CURRENTLY SCHEDULED BETWEEN AMERICAN AND THE FLIGHT ATTENDANTS THE TWO SIDES HAVE BEEN IN DISCUSSIONS FOR A YEAR AND APPEAR TO BE FAR APART ON SEVERAL KEY ISSUES INCLUDING PAY BENEFITS AND STAFFING LEVELS AMERICAN WANTS A 10YEAR AGREEMENT THAT WILL GIVE IT AUTHORITY TO DETERMINE HOW MANY FLIGHT ATTENDANTS TO DEPLOY IN ITS FLEET THE OLD CONTRACT WITH FLIGHT ATTENDANTS CONTAINED CERTAIN MINIMUM LEVELS THAT GUARANTEED SOME FLIGHT ATTENDANTS THEIR JOBS AMERICAN SAYS ITS CONTRACT OFFER INCLUDES A 35 AVERAGE PAY INCREASE OVER FOUR YEARS MOST OF IT FOR LOWERSENIORITY LOWPAID FLIGHT ATTENDANTS BUT AMERICAN'S PROPOSAL CUTS THE TOTAL NUMBER OF FLIGHT ATTENDANTS SIGNIFICANTLY AND CHANGES A HOST OF WORK RULES THAT GOVERN HOW MANY FLIGHT ATTENDANTS WORK ON EACH FLIGHT HOW THEY ARE SCHEDULED AND THEIR VACATION AND BENEFIT PACKAGES IN A STATEMENT AMERICAN SAID THAT EFFECTIVE TODAY IT WILL CHANGE ITS STAFFING PROCEDURES TO BE MORE IN LINE WITH THOSE OF ITS MAJOR COMPETITORS AND THAT IT'S ALSO CHANGING FLIGHT ATTENDANTS' MEDICAL BENEFITS FOR ITS PART THE APFA SAID AMERICAN'S WAGE INCREASE AMOUNTS TO ABOUT 75 FAR LESS THAN WHAT AMERICAN CLAIMS AND THAT THE TALKS BROKE DOWN BECAUSE OF AMERICAN'S REFUSAL TO PROVIDE A BETTER WAGE INCREASE AND BECAUSE OF THE CONTROVERSIAL STAFFING FORMULA THE UNION DESCRIBED AS A BRIBE AMERICAN'S OFFER OF A 4 SIGNING BONUS FOR EMPLOYEES AMERICAN'S FLIGHT ATTENDANTS MAKE 15000 TO 33000 9311010008 931101 MAZDA INCREASES PRICES ISUZU UNITS IN US COMBINED BY OSCAR SURIS AND ANDREA PUCHALSKY STAFF REPORTERS OF THE WALL STREET JOURNAL FOLLOWING ON THE HEELS OF OTHER JAPANESE AUTO MAKERS MAZDA MOTOR CORP ANNOUNCED ADDITIONAL PRICE INCREASES BECAUSE OF THE STRONG YEN WHILE ISUZU MOTORS LTD SAID IT IS CONSOLIDATING ITS US UNITS MAZDA'S US SALES UNIT WHICH PROMISED LAST MONTH THAT IT WOULD SELL SEVERAL OF ITS 1994 MODELS AT 1993 PRICES SAID IT NOW MUST MAKE ADDITIONAL PRICE INCREASES ON ALL OF ITS VEHICLES WITH THE EXCEPTION OF ITS 626 SEDAN MAZDA SAID ITS LATEST ROUND OF INCREASES AMOUNT ON AVERAGE TO 2 OR 30132 A UNIT IN SEPTEMBER MAZDA HAD INCREASED ITS 1994 MODEL PRICES 4 OR 666 HOPING MODEST INCREASES WOULD HELP BOOST ITS LACKLUSTER SALES IN THE US BUT THE JAPANESE CURRENCY'S STRENGTH AGAINST THE DOLLAR HAS FORCED MOST JAPANESE AUTO MAKERS TO RAISE PRICES SHARPLY OR POSSIBLY FACE CHARGES BY DETROIT'S BIG THREE OF DUMPING VEHICLES INTO THE US AT UNFAIRLY LOW PRICES THE LATEST INCREASES RANGE FROM 25 TO 2000 WITH MAZDA'S PICKUPTRUCK LINE HIT THE HARDEST OVERALL TRUCK PRICES INCREASED AN AVERAGE OF 591 ON ITS 17 VARIOUS MODELS ONE MODEL MAZDA'S B3000 FOURWHEELDRIVE SHORT BED BASE TRUCK INCREASED 89 TO 14435 FROM 13250 MEANWHILE ISUZU WHICH SELLS ONLY TRUCKS IN THE US SAID IT WAS CONSOLIDATING ITS FIVE US UNITS INTO TWO CORPORATIONS IN A BID TO STREAMLINE ITS DISTRIBUTION PRODUCT DEVELOPMENT AND SALES EFFORTS THE COMPANY'S TRUCK IMPORTER ENGINEERING UNIT AND ENGINE DISTRIBUTOR WILL MERGE TO FORM ISUZU MOTORS OF AMERICA INC WHILE THE COMPANY'S UNIT FOR IMPORTING SPORTSUTILITY VEHICLES MERGES WITH ITS US DISTRIBUTOR FOR COMMERICAL TRUCKS TO FORM AMERICAN ISUZU MOTORS INC THE FIVE US UNITS EMPLOY ABOUT 900 PEOPLE ISUZU HOWEVER IS OFFERING VOLUNTARY RESIGNATION PACKAGES TO ITS 900 EMPLOYEES AS THE VEHICLE MANUFACTURER SEEKS TO REDUCE JOB REDUNDANCIES CAUSED BY THE MERGERS ISUZU OFFICIALS DECLINED TO IDENTIFY HOW MANY JOBS WOULD HAVE TO BE ELIMINATED UNDER THE CONSOLIDATION PLAN TO MEET THE COMPANY'S COSTCUTTING GOALS 9311010006 931101 MANAGER'S JOURNAL LESSONS OF THE JAPANESE MAVERICKS BY WALT SHILL TOKYO FOR SOME YEARS NOW WESTERN MANAGERS ATTEMPTING TO SUCCEED IN JAPAN HAVE BEEN ADVISED TO ADOPT JAPANESE SALES AND MANAGEMENT PRACTICES AND FUNCTION AS GENUINE INSIDERS TODAY HOWEVER AS THE BUBBLE ECONOMY DEFLATES AND THE POLITICAL SYSTEM REALIGNS THE DYNAMICS OF COMPETITION IN MANY JAPANESE INDUSTRIES NOW FAVOR THE SKILLS AND EXPERIENCE OF WESTERN FIRMS THE RECENT SUCCESSES IN JAPAN OF CONSUMERORIENTED BUSINESSES LIKE TOYS R US TOWER RECORDS DELL AND COMPAQ SUGGEST THAT MUCH OF THE CONVENTIONAL WISDOM ABOUT WHAT IT TAKES TO DO WELL HERE SHOULDERING ONE'S WAY INTO ESTABLISHED DISTRIBUTION NETWORKS FOR EXAMPLE IS BECOMING LESS IMPORTANT THAN THE ABILITY TO MANAGE INNOVATIVE RETAIL FORMATS OR CARRY OUT SOPHISTICATED MARKET RESEARCH THE JAPANESE BRANCHES OF MULTIBILLIONDOLLAR AMERICAN OR EUROPEAN PARENT COMPANIES THINK OF THEMSELVES AS THE EQUALS OF THEIR HUGE JAPANESE COMPETITORS BUT IN REALITY THEY ARE REALLY ONLY SMALL OR MEDIUMSIZE COMPANIES SO THE MODEL OF SUCCESS SHOULD BE THE SMALLER JAPANESE COMPANIES THAT HAVE NO WISH OR NEED TO BECOME MEMBERS OF THE CLUB THESE ENTREPRENEURIAL HIGHGROWTH COMPANIES ARE OPERATING IN DEFIANCE OF THE RULES OF THE GAME AND IN A MANNER THAT IS ACTUALLY SECOND NATURE TO MANY WESTERN FIRMS AND THE MAVERICKS ARE FLOURISHING KEYENCE AN OSAKABASED MAKER OF LASERBASED FACTORY AUTOMATION CONTROLS IS GROWING AT A RATE OF 30 A YEAR WITH AN AFTERTAX RETURN ON SALES OF 20 ITS SECRET BYPASSING THE MULTILAYERED DISTRIBUTION SYSTEM IN FAVOR OF ITS OWN NATIONWIDE DELIVERY SYSTEM AND DIRECT SALES FORCE AND THIS FORCE IS COMPENSATED ON THE BASIS OF PERFORMANCE NOT TENURE ITS PRESIDENT IS CONVINCED THAT A SMALL COMPANY CANNOT AFFORD THE INEFFICIENCIES OF LARGER ORGANIZATIONS THIS MEANS GIVING UP MANY FAMILIAR THINGS OFFICIAL TITLES HAVE BEEN ELIMINATED AS HAVE THE OBLIGATORY DRINKING PARTIES AFTER WORK AND GOLF OUTINGS MABUCHI MOTOR A TOKYOBASED SUPPLIER OF SMALL ELECTRIC MOTORS LIKE THOSE FOUND IN VCRS OFFERS ONLY LOWCOST STANDARDIZED PRODUCTS IT WAS ABLE TO BREAK THE HOLD THAT KEIRETSU THROUGH INTERLOCKING OWNERSHIPS HAVE ON JAPAN'S MARKETS FOR ELECTRICAL GOODS BY ESTABLISHING A CLEAR LOWCOST POSITION FOR CRITICAL COSTSENSITIVE PARTS IT DID THIS BY IMPORTING EVERYTHING IT SELLS AND BY REFUSING TO MAKE THE ENDLESS CUSTOMERSPECIFIC MODIFICATIONS URGED ON IT BY INDUSTRY PRACTICE THE REWARD FOR THIS RADICALISM A 40 SHARE COMPARED WITH MATSUSHITA'S 9 AOYAMA TRADING IS A BAREKNUCKLED HIROSHIMABASED DISCOUNT RETAILER OF MEN'S SUITS WITH SOME 350 OUTLETS AND A RETURN ON SALES OF 20 IT IS TERRORIZING CONVENTIONAL DEPARTMENT STORES WITH SUCH UNCONVENTIONAL TACTICS AS 25 LOSSLEADERS ITS LOWCOST POSITION DEPENDS IN PART ON ITS UNCONVENTIONAL WILLINGNESS TO ASSUME INVENTORY RISK UNLIKE OTHER CLOTHING RETAILERS IT HAS AGREED NOT TO RETURN UNSOLD GOODS TO THE MANUFACTURER AND BEING MORE AT RISK THAN TRADITIONAL PLAYERS IN THE BUSINESS IT DEVELOPED MUCH BETTER SKILLS IN FORECASTING STYLES AND SALES WHEN THE DEPARTMENT STORES PRESSURED SUITMAKER KASHIYAMA TO STOP SHIPPING TO AOYAMA THE DISCOUNT RETAILER IMMEDIATELY RETALIATED BY DUMPING KASHIYAMA INVENTORY AT COST AND BY ANNOUNCING THE REASONS IN FULLPAGE NEWSPAPER ADS IN A FURTHER ATTACK ON THE INDUSTRY'S GENTEEL RULES AOYAMA RECENTLY COMMITTED THE ULTIMATE ACT OF LESE MAJESTE IT OPENED A CUTRATE SHOP IN TOKYO'S HIGHFASHION GINZA DISTRICT TOKYO STEEL A MINIMILL ONLY ONETENTH THE SIZE OF NIPPON STEEL IS CHALLENGING THE GIANTS IN SPECIALTY MARKETS LIKE HBEAMS AND HOT COILS IT IS ABLE TO CUT PRICES AND GAIN MARKET SHARE BOTH BY USING ELECTRIC ARCFURNACE TECHNOLOGY AND BY KEEPING ITS FIXED COSTS LOW ITS DEFIANCE OF TRADITIONAL PRACTICE HAS PAID OFF DURING THE PAST 15 YEARS IT HAS DOUBLED PROFITS WHILE REDUCING ITS WORK FORCE MORE THAN 25 SEGA GROWING AT 30 A YEAR IS NO LONGER JUST A MAKER OF VIDEO GAMES BUT A FULLFLEDGED ENTERTAINMENT PROVIDER MORE PROFITABLE THAN SUCH INDUSTRIAL GIANTS AS FUJITSU AND NEC REFUSING TO BUY ITS WAY INTO THE US MOVIE MARKET IT OPTED INSTEAD FOR A STRATEGY BASED ON DEVELOPING INNOVATIVE NEW PRODUCTS INCLUDING ADVANCED ENTERTAINMENT CENTERS AND ON FORGING ALLIANCES THAT POSITION IT TO BECOME A GLOBAL INFORMATION PLAYER IN A RADICAL BREAK WITH TRADITION A FULL THIRD OF SEGA'S SENIOR MANAGEMENT TEAM HAS BEEN BROUGHT IN FROM OUTSIDE THE COMPANY ITS PRESIDENT HAS ALSO INSTALLED AN INTERNAL RECRUITING SYSTEM THAT ALLOWS ANY EMPLOYEE TO OPENLY APPLY FOR AND MOVE TO ANY JOB IN THE COMPANY MAVERICKS LIKE THESE CAN BE FOUND IN VIRTUALLY EVERY SECTOR OF THE JAPANESE ECONOMY NONE SEEKS TO REPLICATE THE BUSINESS SYSTEM OR PRODUCT STRATEGY OF ESTABLISHED INDUSTRY LEADERS NONE MOVES THE BULK OF ITS GOODS THROUGH ITS INDUSTRY'S LONGENTRENCHED DISTRIBUTION SYSTEM NONE BELONGS TO A KEIRETSU NONE IS A MEMBER OF THE BLUECHIP BUSINESS LOBBY KEIDANREN NONE HAS ITS HEADQUARTERS IN PRESTIGIOUS AND EXTREMELY PRICEY DOWNTOWN TOKYO NONE DOES THE BULK OF ITS MANAGERIAL HIRING FROM THE FIRSTTIER UNIVERSITIES NONE OFFERS ITS NEW HIRES THE IMPLICIT PROMISE OF LIFETIME EMPLOYMENT AND NONE BASES ITS COMPENSATION PRIMARILY ON SENIORITY RATHER THAN ON PERFORMANCE WHAT DOES ALL THIS MEAN FOR WESTERN MANAGERS WHAT THEY NEED TO SUCCEED IN JAPAN IS OFTEN NOT WHAT THEY HAVE BEEN PREPARING THEMSELVES TO DO BUT WHAT THEY ALREADY DO AT HOME RECENTLY A US ELECTRONICS COMPANY PROUDLY RECRUITED A SENIOR VERY EXPERIENCED JAPANESE EXECUTIVE FROM A LARGE ESTABLISHED FIRM TO HEAD UP ITS HUMAN RESOURCES DEPARTMENT IN JAPAN THE UNEXPECTED RESULT DEMORALIZATION AND DEPARTURES AMONG ITS YOUNG AND MOST TALENTED JAPANESE ENGINEERS THEY HAD JOINED THE COMPANY BECAUSE THEY WANTED TO WORK IN AN INFORMAL SILICON VALLEYLIKE ENVIRONMENT WHAT THEY FOUND INSTEAD WAS A STIFLING INSIDER WANNABE BUREAUCRACY MODELED ALONG THE EXTREMELY HIERARCHICAL LINES OF PRE1970 JAPAN AND THEY WANTED NO PART OF IT WESTERN COMPANIES THAT WANT TO THRIVE IN JAPAN WILL WANT NO PART OF IT EITHER THE MAVERICKS POINT THE WAY MR SHILL IS A PARTNER IN MCKINSEY & CO'S TOKYO OFFICE 9311010005 931101 LEISURE & ARTS TELEVISION THE ATTORNEY GENERAL AS SCRIPTWRITER BY DOROTHY RABINOWITZ YOU'VE GOT TO LOVE THIS WOMAN ANNOUNCED KATHIE LEE GIFFORD ON LIVE WITH REGIS AND KATHIE LEE MS GIFFORD WHO HAD EVIDENTLY FOUND A RARE FREE MOMENT IN HER ONGOING MARATHON DISCOURSE ON PREGNANCY TO THINK OF OTHER MATTERS WAS TALKING OF COURSE ABOUT THE ATTORNEY GENERAL OF THE UNITED STATES IT SEEMS THAT JANET RENO HAD THE EVENING BEFORE TOLD THE WORLD VIA THE MACNEIL/LEHRER NEWSHOUR THAT SHE HAD HERSELF WRITTEN A DRAMATIC SCRIPT EXEMPLIFYING THE SOCIALLY RESPONSIBLE FARE TV SHOULD BE SHOWING THE HERO OF MS RENO'S STORY IS A 14YEAROLD KID WHO SHE EXPLAINED GOES ON TO RAISE TWO SIBLINGS WHILE HIS MOTHER RECOVERS FROM CRACK ADDICTION THIS HERO GETS HIS MOTHER INTO TREATMENT AND THREE YEARS LATER THE MOTHER GOES TO LAW SCHOOL AND HE GRADUATES A VALEDICTORIAN SHE HAD OFFERED THE NETWORKS THIS SCRIPT FREE OF CHARGE THE ATTORNEY GENERAL INFORMED JIM LEHRER WHO WAS BY NOW LOOKING A TRIFLE WIDEEYED SOME PRODUCER MAY WELL WISH TO PRODUCE THIS UPLIFTING SCRIPT THE NETWORKS LIVE AFTER ALL IN DESPERATE TIMES BUT WHATEVER HAPPENS IT WOULD BE NICE IF MS RENO COULD EXPLAIN WHY IT IS THAT IN HER WORLD SUCCESS NEVER IS EQUATED WITH ANYTHING SO DOWNTOEARTH AS RUNNING A SMALL BUSINESS OR BEING A CARPENTER AS SHE AND ELITISTS LIKE HER SEE IT IT IS ONLY BY FINISHING LAW SCHOOL THE TRIUMPHAL RESOLUTION INDEED OF COUNTLESS MADEFORTV SCRIPTS OR REACHING OTHER SUCH UPPERCRUST GOALS THAT THE LIVES OF THE DOWNTRODDEN OR FALLEN CAN BE SAID TO BE A SUCCESS BUT NEVER MIND THAT SCRIPT FOR THERE IS ANOTHER SCENARIO AT LEAST AS INTERESTING THAT THE NETWORKS COULD CONSIDER IT CONCERNS A FEMALE ATTORNEY GENERAL CHOSEN AFTER TWO PRIOR CHOICES WERE DISPATCHED IN THE MOST PUBLICIZED AND BIZARRE SEARCH FOR AN ATTORNEY GENERAL IN THE NATION'S HISTORY FINALLY THE HIGHEST POLITICAL POWERS COME UP WITH A CANDIDATE UNENCUMBERED BY QUESTIONS ABOUT NANNIES AND WITHHOLDING TAXES A DISTINCTION THAT IS SUFFICIENT BY NOW TO LEND THE CANDIDATE HEROIC STATURE THE WHOLE NATION MOST ESPECIALLY INCLUDING THE ADMINISTRATION BREATHES A SIGH OF RELIEF AT MS RENO'S ARRIVAL SHE SOON BECOMES THE MOST POPULAR FIGURE IN THE ADMINISTRATION ONE EVER READY TO SHARE MEMORIES OF HER MODEST UPBRINGING WHEREIN SHE WAS TAUGHT TO DO RIGHT BUT SIX MONTHS LATER THE ATTORNEY GENERAL'S STAR HAS SO FAR PLUMMETED THAT THERE IS TALK OF WIDESPREAD CONSTERNATION ABOUT HER IN THE WHITE HOUSE APPARENTLY UNPERTURBED SHE MAKES HER ROUNDS OF THE TALK SHOWS WHERE SHE HOLDS FORTH ON THE SUBJECT OF YOUNGSTERS IN TROUBLE MS RENO'S FAVORED TERM FOR JUVENILE THUGS AND EXPLAINS HOW THE LAWYERS OF AMERICA CAN EACH AND EVERY ONE OF THEM HELP PREVENT CRIME BY ADOPTING A BLOCK OF CHILDREN THAT IS NOW THIS IS SOME SCRIPT EVEN WITHOUT THE MAIN EPISODE THE SPECTACLE OF NETWORK EXECUTIVES HAULED BEFORE CONGRESS AND MS RENO TWO WEEKS AGO TO BE EXCORIATED FOR TV VIOLENCE AND HELD RESPONSIBLE FOR MUCH OF THE ACTUAL VIOLENCE AND CRIMINALITY ABROAD IN THE LAND FURTHERMORE THE NATION'S CHIEF LAWENFORCEMENT OFFICER WARNED IF THE NETWORKS DIDN'T CHANGE PROGRAMMING SUFFICIENTLY TO SATISFY THIS CHARGE THE GOVERNMENT WOULD STEP IN AND DO IT FOR THEM ONCE UPON A TIME THIS STORY MIGHT HAVE HAD A HERO OR TWO IN THE INDUSTRY WHO WOULD HAVE FOUND THE VOICE TO RESPOND APPROPRIATELY TO SUCH THREATS AND BOMBAST IT IS TRUE OF COURSE THAT THE NETWORKS HAVE GOOD REASON TO FEAR GOVERNMENT IE THE FCC AND ANY PRESSURE THAT AFFECTS ADVERTISERS IT IS NONETHELESS REMARKABLE HOW LITTLE THE NETWORKS SAID AND DID TO DEFEND THEMSELVES AND TELEVISION AGAINST THE LUDICROUS CHARGES RAISED IN THAT HEARING ROOM INSTEAD NETWORK REPRESENTATIVES IMPLICITLY ASSENTED TO THEIR GUILT WRUNG THEIR HANDS AND PROMISED TO DO BETTER NO ONE OF THEM THAT DAY OR LATER TOOK THE OPPORTUNITY TO POINT OUT THAT THE CHILDREN MS RENO IMAGINES TO BE SO INFLUENCED BY TV AND WHO GROW UP TO BE THE SORT OF YOUNGSTERS WHO MURDER STRANGERS ON THE STREETS AND ONE ANOTHER DO SO BECAUSE THEY HAVE BEEN FROM BIRTH LARGELY PARENTLESS NOT BECAUSE OF WHAT THEY SEE ON TELEVISION OR TO POINT OUT THAT PARENTLESS CHILDREN TO SAY NOTHING OF THE ARMED YOUNG HOODLUMS WHO HAVE THE FREEDOM OF THE STREETS ALL NIGHT LONG AREN'T GOVERNED BY BEDTIME SCHEDULES OR AFFECTED BY EFFORTS TO SHIFT VIOLENT PROGRAMS TO LATE HOURS MOST OF ALL IT IS A PITY NO ONE POINTED OUT THAT THE GREATEST INSTANCE OF TV VIOLENCE IN THE PAST YEAR CAME IN THE APRIL 19 ASSAULT ON THE WACO COMPOUND HOUSING DAVID KORESH'S FOLLOWERS WE KNOW THAT MS RENO DECIDED TO MOVE AHEAD WITH THE ATTACK AS SOON AS SHE HEARD WORD FALSE AS IT TURNS OUT THAT CHILDREN IN THE COMPOUND WERE BEING SEXUALLY MOLESTED LIKE MANY DEVOTEES OF THE BELIEF THAT CHILD SEX ABUSE IS TAKING PLACE EVERY MINUTE OF EVERY HOUR BEHIND EVERY DOOR MS RENO DECIDED NO RISK WAS TOO GREAT TO SAVE CHILDREN FROM THIS FATE IN THE SHOOTOUT THAT FOLLOWED 25 CHILDREN WERE KILLED IN ORDER TO SAVE THEM FROM SEXUAL MOLESTATION BACK IN THE 1950S COMIC BOOKS WERE THE SUBJECT OF MUCH THE SAME SORT OF DENUNCIATION NOW DIRECTED AT TV IN HEARINGS BEFORE THE LIKES OF SEN ESTES KEFAUVER EXPERTS TESTIFIED TO THE DEADLY DANGERS OF MAD THE VAULT OF HORROR SUPERMAN ETC THIS ONSLAUGHT AGAINST COMIC BOOKS DESCRIBED IN A CLASSIC COMMENTARY ESSAY BY ROBERT WARSHAW WAS LED BY DR FREDERIC WERTHAM A PSYCHIATRIST WHO CITED A SOCIOLOGIST'S STUDY CONCLUDING THAT THE HEROES OF SUPERMANLIKE COMIC BOOKS WERE PSYCHOPATHIC DEVIATES CLEARLY A TRUE BELIEVER OF THE MOST LITERALMINDED KIND DR WERTHAM ASKED A SMALL BOY COMICBOOK READER WHAT HE WANTED TO BE WHEN HE GREW UP THE CHILD OBVIOUSLY GIFTED WITH WRY HUMOR PROMPTLY REPLIED A SEX MANIAC THE GOOD DOCTOR EARNESTLY CITED THIS ANSWER AS PROOF OF THE TRAGIC RESULTS OF COMICBOOK READING LET US HOPE SOMEBODY DOES DO A MOVIE ABOUT MS RENO AND THE WAR ON TV VIOLENCE SUCH A SCRIPT COULD TOUCH ON SO MANY WONDERFUL MYSTERIES FOR INSTANCE WHERE ARE THE ENTERTAINMENT WORLD'S STARS AND SATIRISTS THE SAME WHO MOCKED DAN QUAYLE FOR MONTHS FOR HIS MILD OBSERVATION THAT MURPHY BROWN'S SINGLE MOTHERHOOD DENIGRATED FAMILY VALUES NOW THAT ANOTHER POWERFUL AGENT OF GOVERNMENT HAS SPOKEN UP ABOUT PROGRAMMING WHERE NOW ARE ALL THOSE TV COMEDY WRITERS WHO PILED ON THE BANDWAGON TO SNEER IT'S ONLY A TV SHOW DAN WHERE NOW IS DIANE ENGLISH CREATOR OF MURPHY BROWN WHO HUGGED HER AWARD AT THE EMMY CEREMONY WHILE WORRYING ALOUD THAT THE VICE PRESIDENT'S COMMENT MIGHT MEAN A NEW MCCARTHYISM WHERE NOW ARE THESE FRIENDS OF FREEDOM WHEN IT IS JANET RENO TARGETING SHOWS AND SOMETHING DAN QUAYLE NEVER DID THREATENING CENSORSHIP SUCH ARE THE MYSTERIES OF OUR TIME 9311010004 931101 BUSINESS BRIEF FUTURE COMMUNICATIONS INC DISSIDENT HOLDERS FILE SUIT OVER ANNUAL MEETING DATE A GROUP OF DISSIDENT SHAREHOLDERS FILED A LAWSUIT IN A NEW JERSEY STATE COURT SEEKING TO FORCE FUTURE COMMUNICATIONS INC TO HOLD AN ANNUAL MEETING BY DEC 20 THE SUIT ALSO REQUESTS THE COURT TO ORDER THE EMBATTLED DALLAS CABLETELEVISION CONCERN TO NOTIFY ITS SHAREHOLDERS BY NOV 5 OF THE EXACT DATE FOR THE ANNUAL MEETING THE SUIT WAS FILED BY JAMES J LING AND DICK T BOBBITT PART OF A SHAREHOLDER GROUP THAT HAS ANNOUNCED ITS INTENTION TO REPLACE THE BOARD AND MANAGEMENT IN SEPARATE LAWSUITS FILED BY THE SECURITIES AND EXCHANGE COMMISSION AND AT LEAST FOUR SHAREHOLDER GROUPS FUTURE COMMUNICATION HAS BEEN ACCUSED OF FRAUD AND AN ILLEGAL SCHEME TO INFLATE ITS STOCK PRICE DAVID GORMAN THE COMPANY'S PRESIDENT AND DESIGNATED SPOKESMAN DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT 9311010003 931101 CORPORATE PERFORMANCE 1993 REVIEW 3RD QUARTER COMPANIES' NET INCOME ROSE 24 SURPASSING ANALYSTS' EXPECTATIONS A WALL STREET JOURNAL NEWS ROUNDUP CORPORATE PROFITS SURGED IN THE THIRD QUARTER AS COMPANIES REAPED THE BENEFITS OF CONTINUED COSTCUTTING EFFORTS FOR THE QUARTER JUST ENDED 597 MAJOR CORPORATIONS REPORTED NET INCOME ROSE A CUMULATIVE 24 FROM THE 1992 PERIOD ACCORDING TO A WALL STREET JOURNAL SURVEY THE RESULT WAS A SHARP ACCELERATION FROM THE 11 GAIN IN THE SECOND QUARTER AFTERTAX PROFIT FROM CONTINUING OPERATIONS ALSO JUMPED IN THE LATEST QUARTER WITH A GAIN OF 31 IN THE SECOND QUARTER THE RISE WAS 10 ANALYSTS WERE SURPRISED AT THE EARNINGS STRENGTH ESPECIALLY SINCE ECONOMIC GROWTH OVERALL WAS ONLY MILD ZACKS INVESTMENT RESEARCH SAYS ANALYSTS EXPECT SIMILAR STRENGTH IN THE CURRENT QUARTER BUT MANY ARE NOT AS BULLISH ON THE 1994 OUTLOOK LAST WEEK THE COMMERCE DEPARTMENT ESTIMATED THAT GROSS DOMESTIC PRODUCT GREW AT A 28 ANNUAL RATE IN THE THIRD QUARTER AFTER A MORE MEAGER 19 GROWTH RATE IN THE SECOND QUARTER ANALYSTS FOUND THAT DATA ENCOURAGING BUT SAID THE ECONOMY IS STILL IMPROVING ONLY MODERATELY PROFITS ARE DOING BETTER THAN MIGHT BE EXPECTED FROM THE PACE OF ECONOMIC GROWTH SAYS RICHARD RIPPE CHIEF ECONOMIST OF PRUDENTIAL SECURITIES A LOT OF IT HAS TO DO WITH VERY TIGHT COST CONTROLS WHICH IS BRINGING ABOUT AN IMPROVEMENT IN PROFIT MARGINS THE SPURT IN PROFIT GROWTH OVER THE SECOND QUARTER STEMMED FROM THE EFFECTS OF A SLOWDOWN IN NEW JOBS CREATED THIS SUMMER CONTINUED COSTCUTTING AND THE PAYOFF FROM SEVERAL YEARS OF HEAVY INVESTMENT IN COMPUTERS AND OTHER EQUIPMENT SAY ANALYSTS AND ECONOMISTS ALSO SEVERAL INDUSTRIES WERE AFFECTED IN LAST YEAR'S THIRD QUARTER BY THE IMPACT OF HURRICANE ANDREW DESPITE THE STRONG SHOWING EARNINGS GAINS WERE HELD BACK SOMEWHAT BY SLOW SALES ABROAD AS BUSINESS CONTINUED TO BE WEAK IN EUROPE AND JAPAN DESPITE A RECENT EASING OF INTEREST RATES THE GERMAN CENTRAL BANK HAS KEPT A TIGHT GRIP ON LIQUIDITY TO CURB INFLATION AND MANY ANALYSTS THINK ITS ACTION HAS CONTRIBUTED TO THE BUSINESS WEAKNESS IN EUROPE AMONG INDUSTRY GROUPS AUTO MAKERS AND AIRLINES SHOWED FURTHER SIGNS OF RECOVERY SECURITIES FIRMS REPORTED ANOTHER STRONG QUARTER WHILE OIL COMPANIES' EARNINGS WERE MIXED DETROIT'S BIG THREE AUTO MAKERS ALL POSTED BETTERTHANEXPECTED RESULTS FOR THEIR NORMALLY WEAK THIRD QUARTER FUELING OPTIMISM FOR A STRONGER AUTO INDUSTRY RECOVERY IN THE COMING MONTHS WITH THE BROADER US ECONOMY SHOWING STRONGER SIGNS OF RECOVERY AUTO MAKERS ARE EAGER TO HIT THE ACCELERATOR MORE PEOPLE WHO PUT OFF BUYING NEW CARS DURING THE LATEST RECESSION ARE GIVING UP ON THEIR CLUNKERS JAPANESE AUTO MAKERS MEANWHILE ARE GETTING DRUBBED BY THE SURGING YEN AND THE CONTINUING RECESSION IN JAPAN THESE FACTORS ARE ALLOWING THE BIG THREE TO RAISE PRICES BUT BIG THREE EXECUTIVES CONCEDE THAT FOR AUTO MAKERS TO RAKE IN BIG MONEY THE US ECONOMIC RECOVERY MUST SHOW FURTHER STRENGTH AND EUROPE MUST PULL OUT OF THE RECESSION THAT HAS PUT FORD MOTOR'S EUROPEAN OPERATIONS IN THE RED AND DEPRESSED PROFITS AT GENERAL MOTORS' GM EUROPE UNIT GM DEEPENED ITS NORTH AMERICAN RESTRUCTURING WITH A 950 MILLION PRETAX CHARGE IN THE QUARTER GM OFFICIALS EXPECT CONTINUED IMPROVEMENT IN DOMESTIC RESULTS NEXT YEAR DESPITE A COSTLY NEW LABOR CONTRACT ONE RESULT GM SUPPLIERS WILL FACE CONTINUED PRESSURE TO CUT PRICES THE THIRD QUARTER WAS KIND TO THE BROKERAGE INDUSTRY SECURITIES BROKERS REGARDLESS OF SIZE OR MARKET SHARE REPORTED AT LEAST DOUBLEDIGIT EARNINGS GAINS THE NEARLY THREEYEAROLD UNDERWRITING BOOM CONTINUED AT A RECORD PACE AIDED BY HISTORICALLY LOW INTEREST RATES THAT ENCOURAGED CORPORATE AND MUNICIPAL BOND REFINANCINGS INVESTORS CONTINUED TO SHIFT MONEY OUT OF MONEYMARKET FUNDS AND CERTIFICATES OF DEPOSIT AND INTO STOCKS AND BONDS SALES OF MUTUAL FUNDS WHICH GENERATE A STREAM OF STABLE FEES FOR THE BROKERS WERE UNUSUALLY STRONG ANOTHER MONEYMAKER FOR SECURITIES FIRMS WAS PROPRIETARY TRADING IN WHICH A FIRM USES COMPANY MONEY TO MAKE BETS ON MARKETS REVENUE FROM SUCH TRADING ROSE 20 AT MERRILL LYNCH WHILE PAINEWEBBER SHOWED A GAIN OF 11 AND AT BEAR STEARNS REVENUE FROM SUCH TRADING ROSE 15 BUT AT SALOMON BROTHERS A 173 MILLION LOSS IN PROPRIETARY TRADING OFFSET STRONG GAINS IN THE COMPANY'S BROKERAGE AND INVESTMENT BANKING BUSINESSES INTERNATIONAL INVESTMENT BANKING IS PROVING TO BE ESPECIALLY LUCRATIVE FOR THE INDUSTRY AND BOTH GOLDMAN SACHS AND MORGAN STANLEY ANNOUNCED PLANS TO BEEF UP OVERSEAS OPERATIONS LOOKING FORWARD WITH MORE THAN 500 BILLION STILL PARKED IN MONEY FUNDS CASH THAT COULD FLOW INTO STOCKS BONDS AND MUTUAL FUNDS AT ANY TIME THE ONLY TWO PINS SEEN LIKELY TO BURST THE UNDERWRITING BUBBLE ARE RISING INTEREST RATES OR A SINKING STOCK MARKET THE MAJOR AIRLINES POSTED BIG PROFIT GAINS IN THE THIRD QUARTER TYPICALLY THE INDUSTRY'S STRONGEST A COMBINATION OF LOW FUEL COSTS A PICKUP IN THE ECONOMY AND COSTCUTTING PROGRAMS HELPED BRING MOST OF THE INDUSTRY INTO THE BLACK FOR THE FIRST TIME IN TWO YEARS ALSO YEAROVERYEAR COMPARISONS WERE EASIER BECAUSE WIDESPREAD FARE CUTTING RESULTED IN A DISMAL 1992 QUARTER PRICING STABILIZED IN THE LATEST QUARTER WHICH TOGETHER WITH COST REDUCTIONS BOOSTED RESULTS AT UNITED AND DELTA AMERICAN ALSO BENEFITED FROM IMPROVED EARNINGS FROM ITS NONAIRLINE BUSINESSES SOUTHWEST CONTINUED TO SOAR ON THE STRENGTH OF ITS LOWCOST LOWFARE FORMULA A 672 MILLION CHARGE FOR WORKFORCE CUTS CONTRIBUTED TO USAIR GROUP'S LOSS SHARPLY LOWER CRUDE OIL PRICES WEIGHED HEAVILY ON PROFITS OF MAJOR OIL COMPANIES BUT THOSE COMPANIES WITH A HEAVY EXPOSURE TO REFINING AND MARKETING FARED BETTER THAN THOSE WITHOUT A STRONG DOWNSTREAM SECTOR THE RETAIL MARKETING OF GASOLINE WAS ESPECIALLY LUCRATIVE BECAUSE THE PRICE OF FUEL AT THE PUMP REMAINED HIGH EVEN THOUGH THE PRICE OF CRUDE THE RAW MATERIAL FROM WHICH IT IS MADE DECLINED EARNINGS FROM MOST OIL COMPANIES' PETROCHEMICAL BUSINESSES REMAINED DEPRESSED COMPANIES SHOWING GOOD RESULTS CITED BENEFITS FROM COSTCUTTING PROGRAMS PUT INTO PLACE DURING THE PAST FEW YEARS AND THOSE COMPANIES THAT DIDN'T FARE WELL SUCH AS TEXACO SAID THEY WERE GOING TO CONTINUE TO REDUCE STAFF AND PARE COSTS A STRONG REFINING AND MARKETING BUSINESS WAS PARTICULARLY BENEFICIAL TO MOBIL WHICH SURPRISED ANALYSTS WITH ITS STRONG SHOWING SUN CO AND ASHLAND OIL PRIMARILY REFINING AND MARKETING COMPANIES SWUNG TO A PROFIT FROM A YEAREARLIER LOSS ATLANTIC RICHFIELD TOOK A 115 MILLION CHARGE RELATED TO HIGHER TAXES AND LITIGATION CHEVRON SAID SPECIAL CHARGES INCLUDING 145 MILLION RELATED TO TAXES MASKED A 38 GAIN IN OPERATING RESULTS HERE ARE THE THIRDQUARTER PROFITS FOR VARIOUS INDUSTRY GROUPS AND COMPARISONS WITH THE YEAREARLIER QUARTER WHEN INDIVIDUAL COMPANIES REPORT FOR THREEMONTH PERIODS OTHER THAN CALENDAR QUARTERS THE NEAREST COMPARABLE PERIODS ARE USED IN ALL THE TABLES 000S ARE OMITTED BIG STEELMAKERS GENERALLY IMPROVED THEIR RESULTS AIDED BY STRONG DEMAND PRICES WHILE EDGING UP FOR THE SECOND CONSECUTIVE QUARTER REMAINED BELOW YEAREARLIER LEVELS WITH SOME COMPANIES BETTER ABLE THAN OTHERS TO PUSH THROUGH INCREASES AN EXCEPTION TO THE INDUSTRY TREND WAS ARMCO ITS LOSS INCLUDED A 2055 MILLION CHARGE RESULTING FROM THE DISPOSAL OF SOME PERIPHERAL OPERATIONS MEANTIME MOST OF THE SPECIALTY STEELMAKERS AND MINIMILLS REMAINED FIRMLY PROFITABLE IN THE QUARTER ANALYSTS THINK STEEL PROFITS WILL CONTINUE TO IMPROVE IN THE FOURTH QUARTER AS COSTCUTTING PROGRAMS BOOST MARGINS LOW PRICES PUT SOME ALUMINUM PRODUCERS IN THE RED DESPITE FIRM DEMAND THE SLUMP IN PRICES IS THE RESULT OF AN OVERSUPPLY OF METAL FLOWING ONTO THE MARKET MAINLY FROM REPUBLICS OF THE FORMER SOVIET UNION WHICH IS BLOATING INVENTORIES AROUND THE GLOBE ALUMINUM CO OF AMERICA REPORTED A PROFIT BENEFITING FROM ITS STRONG OVERSEAS ALUMINA BUSINESS ANALYSTS SEE LITTLE CHANCE OF IMPROVEMENT IN THE FOURTH QUARTER SINCE EXCESS INVENTORIES WILL CONTINUE TO DEPRESS PRICES DESPITE FURTHER WEAKNESS IN FORESTPRODUCTS EARNINGS ANALYSTS SAY TIMBER PRICES BEGAN REBOUNDING MIDWAY THROUGH THE QUARTER PRICES ARE EXPECTED TO CONTINUE CLIMBING AS DEMAND INCREASES AND COMPANIES CONTINUE TO SCRAMBLE FOR SCARCE TIMBER SUPPLIES ANALYSTS SAY HOUSING STARTS WHICH MOVED UP IN THE PAST TWO MONTHS TO THE HIGHEST LEVEL IN FOUR YEARS ARE EXPECTED TO REMAIN STRONG THROUGH 1994 IF THE ECONOMY KEEPS IMPROVING ON THE PAPER SIDE PROFITS SLUMPED AGAIN BUT ANALYSTS SAY THEY EXPECT STRONGER EARNINGS IN MANY PAPER CATEGORIES FOR THE CURRENT QUARTER AS THE ECONOMY STRENGTHENS I THINK THEY'VE TURNED THE CYCLICAL CORNER SAYS MARK ROGERS OF PRUDENTIAL SECURITIES NOT ALL SECTORS ARE EXPECTED TO BOUNCE BACK NEWSPRINT MARKET PULP AND BLEACHBOARD ARE EXPECTED TO CONTINUE STRUGGLING CHEMICAL MAKERS PARTICULARLY THOSE WITH A BIG EXPOSURE TO THE DEPRESSED EUROPEAN MARKET CONTINUED TO ENDURE LOW PRICES ON MANY BULK PLASTICS AND CHEMICALS VOLUME INCHED UP AND THE NORTH AMERICAN MARKET DISPLAYED SOME STRENGTHENING CERTAIN SPECIALTY LINES OR PRODUCTS WITH SPECIALTY APPLICATIONS WERE STRONG AND THE INDUSTRY'S ACCELERATING COSTCUTTING EFFORTS HELPED MARGINS AT SEVERAL COMPANIES BUT A HOST OF CHARGES SUCH AS DUPONT'S 13 BILLION FOR ASSET WRITEDOWNS AND WORKFORCE REDUCTIONS TENDED TO SKEW COMPARISONS FOR MANY COMPANIES NATURALGAS PIPELINE PROFITS WERE MIXED MANY COMPANIES HAD HIGH COSTS FROM BUYING OUT REMAINING CONTRACTS ON GAS TRANSACTIONS IN WHICH THEY HAD ACTED AS MERCHANTS THEY'RE SHEDDING THEIR OLD BUYERSELLER ROLE TO BECOME TRANSPORTERS UNDER NEW FEDERAL REGULATIONS SOME COMPANIES REPORTED FLAT DEMAND AND LOWER PRICES COMPARED WITH THE STRONG YEAREARLIER QUARTER PROFIT MARGINS HAVE FAILED TO STRENGTHEN AS THEY DID LAST YEAR AFTER HURRICANE ANDREW TEMPORARILY KNOCKED OUT ROUGHLY 5 OF GAS PRODUCTION IN THE GULF OF MEXICO IN SEPTEMBER 1992 THE TYPICAL PRICE OF GAS SOARED TO A SEVENYEAR HIGH BUT THIS FALL'S GAS PRICES ARE DOWN 20 SO FAR ENRON'S RESULTS INCLUDED A CHARGE OF 54 MILLION FROM ACCUMULATED DEFERRED TAX LIABILITIES MAJOR RAILROADS POSTED SHARPLY LOWER EARNINGS REFLECTING DEFERRED TAX ADJUSTMENTS AND OTHER NONRECURRING ITEMS MIDWESTERN RAIL LINES WERE SEVERELY AFFECTED BY THIS SUMMER'S FLOODS WHILE SOME EASTERN RAILROADS WERE HURT BY A COAL MINERS STRIKE HOWEVER UNDERLYING OPERATIONS WERE STRONG BECAUSE OF CONTINUED EFFICIENCY GAINS CONRAIL SAID TRAFFIC GROWTH IN MOST COMMODITIES OFFSET WEAK COAL SHIPMENTS WITHOUT TWO NONRECURRING ITEMS CONRAIL WOULD HAVE HAD A PROFIT OF 83 MILLION BURLINGTON NORTHERN SAID IT CONTINUED TO BENEFIT FROM COSTREDUCTION PROGRAMS EXCLUDING THE EFFECTS OF THE FLOODS AND ONETIME TAXLAW CHANGES THE COMPANY'S PROFIT WOULD HAVE BEEN SHARPLY HIGHER AT 102 MILLION ANALYSTS EXPECT RAIL EARNINGS TO RISE SIGNIFICANTLY IN THE FOURTH QUARTER AS FREIGHT OPERATIONS RETURN TO NORMAL AMONG TRUCKERS CONSOLIDATED FREIGHTWAYS POSTED ITS STRONGEST QUARTERLY GAIN IN FOUR YEARS REFLECTING MORE STABLE LONGHAUL FREIGHT RATES AND IMPROVEMENTS AT ITS AIRFREIGHT COMPANY AND ITS REGIONAL TRUCK LINES HOWEVER ROADWAY WAS HURT BY INCREASED TAXES AND A DECLINE IN PRODUCTIVITY IN ITS LONGHAUL LTL OPERATION CAROLINA FREIGHT SAID ITS LOSS REFLECTED LOWER FREIGHT RATES WHICH BEGAN TO IMPROVE ONLY AT THE END OF ITS THIRD QUARTER EARNINGS FOR AIRFREIGHT COURIERS RECOVERED AS THE DOMESTIC BUSINESS SAW YIELDS IMPROVE FEDERAL EXPRESS WHOSE FIRST QUARTER ENDED AUG 31 CUT ITS INTERNATIONAL LOSSES BY MORE THAN 40 DOMESTICALLY THE CARRIER KEPT PACKAGE COSTS FLAT WHILE REVENUE PER PACKAGE FELL ONLY SLIGHTLY THE COMPANY SAW A STRONG 11 GAIN IN ITS MORE PROFITABLE NEXTMORNING DELIVERY SERVICE AIRBORNE LOWERED ITS COST PER PACKAGE BY 8 EXCEEDING A 35 DECLINE IN REVENUE PER PACKAGE AND BENEFITED FROM LOWER JETFUEL PRICES TRUCK MAKERS AND THEIR SUPPLIERS SAW STRONG PROFIT GAINS PROPELLED BY A CONTINUED RECOVERY IN SALES OF HEAVYDUTY TRUCKS NAVISTAR'S BIG LOSS WAS THE RESULT OF A ONETIME CHARGE OF 513 MILLION FOR IMPLEMENTING ITS NEW RETIREE BENEFITS PLAN THE YEAREARLIER QUARTER INCLUDED A 65 MILLION CHARGE TO SETTLE PENSION LITIGATION A BRISK REBOUND IN DOMESTIC SALES OF CONSTRUCTION AND AGRICULTURAL EQUIPMENT HELPED MACHINERY MAKERS CATERPILLAR THE LEADING MAKER OF CONSTRUCTION EQUIPMENT EXPECTS WORLDWIDE INDUSTRY DEMAND TO INCREASE SLIGHTLY IN 1994 CATERPILLAR BENEFITED IN THE LATEST QUARTER FROM ONETIME GAINS TOTALING 336 MILLION FOR A TAX CREDIT AND A SETTLEMENT WITH THE INTERNAL REVENUE SERVICE HARNISCHFEGER'S LOSS REFLECTED A RESTRUCTURING CHARGE HOME BUILDERS CONTINUED TO BENEFIT FROM INTEREST RATES THAT ARE AT A 25YEAR LOW AND PENTUP DEMAND FACTORS THAT ARE FUELING A HOUSING RECOVERY ACROSS THE NATION THE MAJOR EXCEPTION IS SOUTHERN CALIFORNIA WHERE THE ECONOMIC DOLDRUMS HAVE ESPECIALLY HURT HIGHEND BUILDERS SUCH AS STANDARD PACIFIC BUT KAUFMAN & BROAD HAS BEEN ABLE TO GROW BY GOBBLING UP MARKET SHARE FROM UNDERFINANCED COMPETITION IN THE STATE AS LOWEND HOUSING PICKS UP SOMEWHAT AMONG RETAILERS DEPARTMENT STORES UNTIL RECENTLY THE SLOWMOVING DINOSAURS OF THE INDUSTRY ARE EXPECTED TO POST SLIGHT PROFIT INCREASES FOR THEIR THIRD QUARTERS ENDED OCT 31 ANALYSTS EXPECT HIGHER EARNINGS AT JC PENNEY NORDSTROM AND MAY DEPARTMENT STORES AS CONSUMERS ARE SIGNALING THEY PREFER TO SHOP IN ONESTOP ANCHOR DEPARTMENT STORES RATHER THAN ROAM THE MALLS TO SEEK OUT SPECIALTY STORES SOME ANALYSTS SAY SEARS ROEBUCK WHICH IS TURNING AROUND ITS ONCEDOWDY APPAREL BUSINESS MAY BE STEALING MARKET SHARE FROM SPECIALTY APPAREL RETAILERS SUCH AS MELVILLE THAT TARGET THE SAME MIDDLETOLOWERINCOME CONSUMER SEARS WHICH REPORTS ON A CALENDARYEAR BASIS POSTED BETTERTHANEXPECTED EARNINGS AFTER A BIG LOSS IN THE YEAREARLIER PERIOD OTHER APPAREL RETAILERS WERE HELPED BY PENTUP SEASONAL DEMAND AND COOLER WEATHER ANALYSTS CAUTION THAT AN IMPROVED THIRD QUARTER DOESN'T NECESSARILY SIGNAL STRONG MOMENTUM FOR THE CHRISTMAS SEASON IT'S GOING TO TAKE SOME MARKDOWNS OR ADDITIONAL ADVERTISING TO CONVINCE CONSUMERS TO BUY SAYS JEFFREY EDELMAN OF CJ LAWRENCE THE HOTEL AND GAMBLING GROUPS HAD MIXED RESULTS FOR THE TRADITIONALLY BUSY THIRD QUARTER HOTEL OPERATORS REPORTED SOME REGIONAL IMPROVEMENTS IN VACATION AND BUSINESS TRAFFIC ALTHOUGH PROFIT MARGINS REMAINED SQUEEZED BECAUSE OF THE DIFFICULTY IN RAISING ROOM RATES IN A COMPETITIVE MARKET A FEW SUCH AS HILTON HOTELS SAW OVERALL OCCUPANCIES SLIDE A BIT DESPITE GAINS IN IMPORTANT MARKETS SUCH AS NEW YORK MOST GAMBLING COMPANIES PRODUCED SOLID RESULTS WITH SOME SUCH AS CAESARS WORLD BENEFITING FROM SOLID OVERALL BUSINESS AS WELL AS GOOD LUCK AT THE GAMBLING TABLES ANALYSTS EXPECT THE CURRENT QUARTER TO BRING SIMILAR RESULTS FOR THE LODGING BUSINESS AND NOTE THAT THE CASINO INDUSTRY'S NORMALLY SLOW FOURTH QUARTER MAY BE AIDED BY THE OPENINGS OF THREE MAJOR LAS VEGAS RESORTS AMONG RESTAURANTS OVERALL EARNINGS AND SAMESTORE SALES WERE UP PARTLY ATTRIBUTABLE TO THE INTRODUCTION OF NEW PRODUCTS AND RENOVATED LOCATIONS AT MCDONALD'S WEAK FOREIGN CURRENCIES AND A HIGHER US TAX RATE TRIMMED EARNINGS BELOW ANALYSTS' EXPECTATIONS SHONEY'S REPORTED A SLIGHT INCREASE IN SAMESTORE SALES AS THE CHAIN BEGAN TO SEE THE RESULTS OF A NEW MENU AND REMODELING AT TCBY SAMESTORE SALES OF COMPANY AND FRANCHISED OUTLETS WERE UP 1 MOST LARGE TOY MANUFACTURERS REGISTERED HIGHER PROFITS DESPITE SLOW SALES MOMENTUM IN THE US AND UNFAVORABLE CURRENCY TRANSLATIONS ABROAD WHERE GROWTH IS HEAVIEST DANGLING A BAGFUL OF TOYS PROJECTED AS THIS YEAR'S HITS MANY OF THE COMPANIES MANAGED TO PERSUADE RETAILERS TO CARRY AN ASSORTMENT OF LESS POPULAR BUT HIGHMARGIN TOYS AS WELL TYCO TOYS WHOSE LINEUP OF BLOCKBUSTERS HAS SHRUNK THIS YEAR PROVED THE EXCEPTION TO THE INDUSTRY TREND BROADCASTING COMPANIES CAPITAL CITIES/ABC AND CBS REPORTED SHARPLY HIGHER RESULTS BECAUSE OF THE IMPROVING ADVERTISING MARKET FOR NETWORK TELEVISION CBS WHICH ALSO BENEFITED FROM A ONETIME GAIN RELATED TO A SETTLEMENT OF A LONGRUNNING SUIT WITH VIACOM INTERNATIONAL REPORTED RECORD PROFIT FOR THE QUARTER AND SAID IT EXPECTS TO POST RECORD EARNINGS FROM CONTINUING OPERATIONS FOR THE YEAR MOST NEWSPAPER PUBLISHERS EXCEEDED ANALYSTS' EXPECTATIONS FOR THE QUARTER BOOSTING THEIR PROFITS THROUGH A COMBINATION OF MODERATELY HIGHER ADVERTISING REVENUE AND LOWER COSTS SEVERAL COMPANIES INCLUDING WASHINGTON POST WERE HELPED BY GOOD RESULTS FROM THEIR BROADCASTING DIVISIONS DOW JONES GOT THE BIGGEST BOOST AMONG NEWSPAPER COMPANIES FROM INCREASED ADVERTISING REVENUE MCGRAWHILL'S LOSS WAS THE RESULT OF 161 MILLION IN CHARGES RELATED TO BUYING THE OTHER HALF OF A TEXTBOOK BUSINESS IT OWNED IN ORDER TO STIMULATE RETAIL DEMAND APPAREL MAKERS CUT WHOLESALE PRICES HURTING MARGINS AT SEVERAL COMPANIES LIZ CLAIBORNE WAS SADDLED WITH HIGHER INVENTORIES THAN A YEAR EARLIER RUSSELL CORP'S LOSS INCLUDED A CHARGE RELATED TO WRITEDOWNS OF CERTAIN ASSETS HARTMARX'S YEAREARLIER LOSS INCLUDED A 191 MILLION RESTRUCTURING CHARGE MOST ANALYSTS BELIEVE APPAREL MAKERS WILL POST MODERATE GAINS IN THE FOURTH QUARTER IN KEEPING WITH RETAILERS' CONSERVATIVE EXPECTATIONS FOR CHRISTMAS SALES THE MIDWESTERN FLOODS TOOK THEIR TOLL ON FOOD COMPANIES CORN MILLERS ARCHERDANIELSMIDLAND AND CPC INTERNATIONAL BLAMED THE WEATHER FOR HURTING MILLING OPERATIONS AND EARNINGS DEAN FOODS CITED WEATHERRELATED CROP SHORTAGES AND VEGETABLE HARVESTING DELAYS FOR MUCH OF ITS PROFIT DECLINE BUT QUAKER OATS CITED IMPROVED SALES OF ITS GATORADE THIRST QUENCHER FOR STRONGERTHANEXPECTED EARNINGS KELLOGG ACHIEVED RECORD EARNINGS DESPITE FLAT SALES FOOD RETAILERS CONTINUED TO BE BATTERED BY WEAK CONSUMER SPENDING LOW FOOD INFLATION AND PRICE DECLINES IN SUCH ITEMS AS PACKAGED FOOD BRUNO'S AND FOOD LION SUFFERED FROM SOFT SALES AND WEAK PROFIT MARGINS BUT FIERCE COSTCUTTING AND SOME SALES IMPROVEMENT BUOYED SAFEWAY AND ALBERTSON'S STILL THE OUTLOOK IS LACKLUSTER WITH ONLY MUTED EARNINGS GROWTH EXPECTED IN AN INCREASINGLY COMPETITIVE ENVIRONMENT MANY MAJOR BEVERAGE COMPANIES REPORTED HIGHER PROFITS WITH HOT SUMMER WEATHER AND NONCOLA ALTERNATIVES BOOSTING US SOFTDRINK SALES COCACOLA'S OVERSEAS SALES VOLUME INCREASED A WEAK 4 HURT BY SOFT ECONOMIES AND BAD WEATHER IN KEY MARKETS BUT US VOLUME ROSE AN UNUSUALLY STRONG 6 BENEFITING FROM RESTAURANT PROMOTIONS AND JUICES AND TEAS PEPSICO WAS ALSO HELPED BY ALTERNATIVE DRINKS AS WELL AS LOWER COSTS FOR SWEETENERS AND PACKAGING EXCLUDING EFFECTS FROM A TAXLAW CHANGE COCACOLA ENTERPRISES THE BIG COKE BOTTLER WOULD HAVE HAD A PROFIT OF 10 MILLION ANHEUSERBUSCH'S LOSS RESULTED FROM A ONETIME PRETAX RESTRUCTURING CHARGE OF 565 MILLION MOST HEALTHCARE COMPANIES POSTED STRONG EARNINGS GAINS DESPITE PERIODIC WORRIES THAT PENDING HEALTHSYSTEM REFORM COULD HURT THEIR PROSPECTS HEALTHMAINTENANCE ORGANIZATIONS SUCH AS US HEALTHCARE BENEFITED BOTH FROM INCREASED MEMBERSHIP AND WIDER PROFIT MARGINS MOST MAJOR HOSPITAL CHAINS WERE AIDED BY LOWER INTEREST EXPENSES HCA'S LOSS A YEAR EARLIER REFLECTED A 333 MILLION CHARGE FOR SELLING SOME GENERAL HOSPITALS AND RESTRUCTURING THE COMPANY'S PSYCHIATRICHOSPITAL BUSINESS NATIONAL MEDICAL INCURRED A LOSS BECAUSE OF RESERVES RELATED TO ITS TROUBLED PSYCHIATRIC UNIT MANY DRUG COMPANIES DID SLIGHTLY BETTER THAN EXPECTED DURING THE QUARTER DESPITE UNFAVORABLE CURRENCY RATES WEAK EUROPEAN MARKETS AND CONTINUED PRICING PRESSURE IN THE US PFIZER'S LOSS REFLECTED A BIG PRETAX RESTRUCTURING CHARGE OF 750 MILLION WHILE UPJOHN'S LOSS WAS THE RESULT OF A 255 MILLION PRETAX RESTRUCTURING CHARGE WARNERLAMBERT'S EARNINGS DECLINED IN PART BECAUSE OF REGULATORY PROBLEMS IN MANUFACTURING FACILITIES RONALD NORDMANN AN ANALYST AT PAINEWEBBER EXPECTS CONTINUED PRESSURE ON EARNINGS IN THE FOURTH QUARTER THE APRIL DECISION BY PHILIP MORRIS TO CUT THE PRICE OF PREMIUM CIGARETTES BY 40 CENTS A PACK EXACTED A BRUTAL TOLL ON TOBACCO COMPANY PROFITS THE FOURTH QUARTER IS EXPECTED TO BE JUST AS BAD IF NOT WORSE AS THE PRICE CUTS MADE PERMANENT IN AUGUST WILL BE IN EFFECT FOR THE ENTIRE QUARTER IN ADDITION PHILIP MORRIS AND RJR NABISCO ARE BOTH EXPECTED TO TAKE COSTCUTTING CHARGES IN THE QUARTER COMPUTER MAKERS' EARNINGS WERE WIDELY MIXED SOME COMPANIES BENEFITED FROM COSTCONTROL EFFORTS WHILE OTHERS WERE HURT BY UNFAVORABLE CURRENCY TRANSLATIONS AND WEAK SALES IN SOME BUSINESSES INTERNATIONAL BUSINESS MACHINES' LOSS WAS SOMEWHAT SMALLER THAN EXPECTED AND RESULTS LACKED THE MASSIVE CHARGES THE COMPANY HAS TAKEN IN RECENT QUARTERS INCLUDING THE YEAREARLIER PERIOD BUT OFFICIALS WERE CAREFUL TO POINT OUT THAT EVEN THOUGH THERE SEEMED TO BE SOME PROMISING SIGNS MANY CHALLENGES TO IBM'S RECOVERY LIE AHEAD COMPAQ ATTRIBUTED ITS UNEXPECTEDLY STRONG RESULTS TO SALES GROWTH IN EVERY REGION WORLDWIDE INCLUDING EUROPE WHERE AN ECONOMIC SLOWDOWN HAS HURT OVERALL COMPUTER SALES APPLE COMPUTER REPORTED SLIGHTLY BETTER PROFITS THAN SOME ANALYSTS EXPECTED THOUGH SUN MICROSYSTEMS ATTRIBUTED ITS SIGNIFICANTLY HIGHER PROFIT TO COSTCUTTING MEASURES THE NUMBERS WEREN'T AS HIGH AS EXPECTED AND SOME ANALYSTS ARE CONCERNED ABOUT FUTURE PROFIT MARGINS DIGITAL LIKE IBM IS STILL STRUGGLING WITH A RESTRUCTURING ITS WIDERTHANEXPECTED LOSS WAS THE RESULT OF CURRENCY TRANSLATIONS AND WEAKNESS IN EUROPE WHICH ACCOUNTS FOR 50 OF THE COMPANY'S SALES SEMICONDUCTOR MAKERS HAD ANOTHER EXPLOSIVE QUARTER THOUGH MANY INVESTORS FEAR PROFITS MAY HAVE PEAKED INTEL THE LEADING SUPPLIER OF MICROPROCESSOR BRAINS FOR PCS CONTINUED TO REAP STRONG DEMAND FOR ITS HIT 486 CHIP AND SAID IT IS ON TRACK TO SHIP HUNDREDS OF THOUSANDS OF ITS NEWER PENTIUM PROCESSOR BY THE END OF THE FOURTH QUARTER DEMAND FOR PC NETWORKS AND OTHER HARDWARE FUELED STRONG GROWTH AT NATIONAL SEMICONDUCTOR AND ANALOG DEVICES ADVANCED MICRO TOUCHED OFF INVESTOR ANXIETY ABOUT INDUSTRY GROWTH AS IT REPORTED LOWERTHANEXPECTED EARNINGS STIFFER COMPETITION IS EXPECTED TO INCREASE PRESSURE ON INDUSTRY PROFIT MARGINS IN THE CURRENT QUARTER SOFTWARE COMPANIES ALSO FACED SOLID UNIT SALES TEMPERED WITH FIERCE COMPETITION MICROSOFT THE OTHER PIVOTAL SUPPLIER TO THE PC INDUSTRY BESIDES INTEL EXPERIENCED SLOWERTHANUSUAL PROFIT GROWTH BECAUSE OF PROGRAM PRICE WARS AND THE COMPANY'S SHEER SIZE OTHER COMPANIES WITH HOT PRODUCTS IMPROVED PROFITABILITY ORACLE WHICH HAS A NEW VERSION OF ITS DATABASE SOFTWARE TOPPED ANALYSTS' ESTIMATES AS IT REVERSED A YEAREARLIER LOSS LOTUS DEVELOPMENT ALSO APPEARED TO BE REBOUNDING PROFITS MORE THAN DOUBLED WHEN A ONETIME PRETAX GAIN OF 35 MILLION IN THE YEAREARLIER PERIOD IS STRIPPED AWAY BORLAND ON THE OTHER HAND WAS THE WORST VICTIM OF THE PRICE WARS NOVELL'S NET LOSS WAS CAUSED BY A 320 MILLION WRITEOFF FROM ACQUISITIONS BUT THE NETWORK SOFTWARE SUPPLIER ALSO EXPERIENCED A REVENUE SLOWDOWN BECAUSE OF WEAKNESS IN THE GERMAN MARKET AND A LACK OF NEW PRODUCTS THE REPORTED GENERALLY STRONG RESULTS REFLECTING THE BENEFITS OF PRODUCTIVITY GAINS REDUCTIONS IN OVERHEAD AND OTHER COSTCUTTING EFFORTS BUT BOEING'S PROFIT PLUNGED AS IT CONTINUING TO SUFFER FROM LOWERTHANEXPECTED DELIVERIES OF COMMERCIAL JETS THE COMPANY'S LACKLUSTER RESULTS WHICH SURPRISED SOME ANALYSTS ALSO EXTENDED TO ITS DEFENSE OPERATIONS GENERAL DYNAMICS' INCOME FROM CONTINUING OPERATIONS MORE THAN DOUBLED WITH HEFTY EARNINGS INCREASES FROM BOTH NUCLEAR SUBMARINES AND ARMORED VEHICLES THE COMPANY'S NET INCOME IN THE YEAREARLIER QUARTER INCLUDED 91 MILLION IN EARNINGS FROM DISCONTINUED OPERATIONS NORTHROP BOUNCED BACK INTO THE BLACK DESPITE A NARROWERTHANEXPECTED PROFIT MARGIN ON THE B2 STEALTH BOMBER AND GRUMMAN'S EARNINGS SURGED AIDED BY SHARPLY REDUCED INTEREST COSTS MAJOR US BANKS CONTINUED TO CHURN OUT STRONG PROFITS FUELED BY A QUICKERTHANEXPECTED IMPROVEMENT IN ASSET QUALITY AND FAT ALBEIT SHRINKING MARGINS BETWEEN BORROWING AND LENDING RATES WHOLESALE BANKS BENEFITED FROM BIG GAINS FROM TRADING CURRENCIES BONDS AND DERIVATIVE PRODUCTS RETURN ON ASSETS HIT AN ALLTIME HIGH FOR THE AVERAGE BANK SAYS DAVID BERRY DIRECTOR OF RESEARCH AT KEEFE BRUYETTE & WOODS CONSUMER LOAN DEMAND HAS PICKED UP HELPING BANKS SUCH AS FIRST CHICAGO BANC ONE AND BANK OF NEW YORK WELLS FARGO SHAWMUT NATIONAL AND CITICORP HAD UNUSUALLY STRONG PROFIT GAINS BECAUSE OF DECLINES IN LOANLOSS PROVISIONS MELLON BANK INCURRED ONETIME CHARGES WHICH DEPRESSED ITS EARNINGS MOST ANALYSTS ARE EXPECTING SIMILAR RESULTS FOR THE FOURTH QUARTER EARNINGS ESTIMATES FOR MANY BANKS ARE BEING RATCHETED UP FOR THE CURRENT QUARTER AND NEXT YEAR BUT NET INTEREST MARGINS WILL CONTINUE TO NARROW ALTHOUGH CREDIT COSTS WILL FALL THRIFTS CONTINUED TO STRUGGLE BECAUSE OF WEAK REALESTATE MARKETS PARTICULARLY IN CALIFORNIA GREAT WESTERN HAD A 100 MILLION PROVISION RELATED TO THE PENDING SALE OF 475 MILLION OF BAD REALESTATE LOANS MOST OF THEM IN CALIFORNIA GOLDEN WEST ANOTHER BIG CALIFORNIA THRIFT AND USUALLY A STAR PERFORMER IN THE INDUSTRY WAS CRIMPED BY TIGHTER INTERESTRATE MARGINS HF AHMANSON RETURNED TO PROFITABILITY AFTER A SECONDQUARTER LOSS BUT MANAGED A RETURN ON ASSETS OF ONLY 056 MOST BIG CALIFORNIA BANKS HAVE BEEN POSTING RETURNS ON ASSETS OF ABOUT 1 A FLURRY OF ALLIANCES AND ACQUISITIONS IN THE TELECOMMUNICATIONS INDUSTRY GENERALLY OVERSHADOWED THE MODERATE RISE IN PROFITS AMONG REGIONAL PHONE COMPANIES FOR LOCAL PHONE COMPANIES ACCESSLINE GROWTH A GOOD BAROMETER OF BUSINESS PICKUP HOVERED AROUND A MODERATE 3 WITH GTE AND THE BABY BELLS' TRADITIONAL PHONE BUSINESS APPROACHING SATURATION LEVELS THE SHARPLY GROWING CELLULAR BUSINESS IS BECOMING AN INCREASINGLY IMPORTANT REVENUE SOURCE PLODDING REGIONAL ECONOMIES HAVE FORCED SOME OF THE BELLS TO AGGRESSIVELY CONTROL COSTS THROUGH LAYOFFS OR CONSOLIDATION OF OPERATIONS OPERATING PROFITS ROSE 5 TO 6 IN LINE WITH MOST ANALYSTS' EXPECTATIONS U S WEST RECORDED A NONCASH 32 BILLION CHARGE MAINLY REFLECTING AN ACCOUNTING CHANGE FOR DEPRECIATION AND A CHARGE OF 610 MILLION FOR STREAMLINING AND OTHER COSTS GTE TOOK A CHARGE OF 90 MILLION FOR EARLY DEBT PAYMENT THE TWO LEADING LONGDISTANCE CARRIERS POSTED STRONG EARNINGS GROWTH AT&T'S LONGDISTANCE CALLING VOLUME ROSE 55 WHILE MCI POSTED A 147 INCREASE AT&T AND MCI SAID THEIR LONGDISTANCE PROFIT MARGINS WIDENED BECAUSE OF A DECREASE IN ACCESS CHARGES THEY PAY TO LOCAL PHONE COMPANIES AN ACROSSTHEBOARD IMPROVEMENT IN PROFIT MARGINS HELPED GENERAL ELECTRIC POST A RECORD PROFIT SEVEN OUT OF GE'S 12 BUSINESSES HAD DOUBLEDIGIT PROFIT INCREASES LED BY APPLIANCES FINANCIAL SERVICES BROADCASTING AND POWERSYSTEMS OPERATIONS 9311010002 931101 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT THREEMONTH AND SIXMONTH BILLS THREEYEAR AND 10YEAR NOTES ABBEY HEALTHCARE 150 MILLION OF NINEYEAR SENIOR SUBORDINATED NOTES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP GTE NORTH 250 MILLION OF SIXYEAR DEBENTURES VIA COMPETITIVE BID ARMCO INC 125 MILLION OF SEVENYEAR SENIOR NOTES VIA SALOMON BROTHERS INC AMERISTAR CASINOS INC INITIAL 24 MILLION SHARES VIA MONTGOMERY SECURITIES BANKATLANTIC 18 MILLION SHARES VIA BEAR STEARNS & CO BROADBAND TECHNOLOGIES INC THREE MILLION SHARES VIA BEAR STEARNS GIBRALTAR STEEL CORP INITIAL 25 MILLION SHARES VIA SALOMON BROTHERS HARTEHANKS COMMUNICATIONS INC INITIAL 63 MILLION SHARES VIA GOLDMAN SACHS & CO LOS ANGELES DEPARTMENT OF WATER & POWER 6274 MILLION SECOND ISSUE OF 1993 ELECTRIC PLANT REVENUE REFUNDING BONDS VIA COMPETITIVE BID UNIVERSITY OF CALIFORNIA 1905 MILLION CERTIFICATES OF PARTICIPATION VIA COMPETITIVE BID ALASKA HOUSING FINANCE CORP 145 MILLION OF GENERAL HOUSING BONDS VIA A DEAN WITTER REYNOLDS INC GROUP LAFAYETTE LA 111 MILLION OF PUBLIC POWER AUTHORITY REVENUE BONDS VIA A SMITH BARNEY SHEARSON GROUP MICHIGAN STATE HOSPITAL FINANCE AUTHORITY 152 MILLION OF HOSPITAL REVENUE REFUNDING BONDS VIA A GOLDMAN SACHS GROUP MASSACHUSETTS HEALTH & EDUCATIONAL FACILITIES AUTHORITY 130 MILLION OF REVENUE BONDS FOR BOSTON COLLEGE VIA A GOLDMAN SACHS GROUP ORLANDOORANGE COUNTY EXPRESSWAY AUTHORITY FLA 200 MILLION OF JUNIORLIEN REVENUE REFUNDING BONDS VIA A PAINEWEBBER INC GROUP 9311010001 931101 SEVEN OAKS INTERNATIONAL INC MEMPHIS TENN SEVEN OAKS INTERNATIONAL INC SAID A MAJOR CUSTOMER WILL DROP A COUPONPROCESSING CONTRACT THAT ACCOUNTED FOR 19 OF THE CLEARINGHOUSE'S FISCAL 1993 REVENUE TOMMY R THOMPSON CHIEF EXECUTIVE OFFICER SAID THE COMPANY WILL CONTINUE TO PROCESS COUPONS FOR THE ACCOUNT THROUGH FEBRUARY 1994 THE VOLUME OF COUPONS HAS BEEN DECLINING BECAUSE OF THE CUSTOMER'S INCREASED EMPHASIS ON DIRECT PRICE REDUCTIONS MR THOMPSON SAID THE COUPON CLEARINGHOUSE POSTED A NET LOSS OF 44 MILLION OR 69 CENTS A SHARE ON REVENUE OF 79 MILLION FOR THE FISCAL YEAR ENDED APRIL 30 MR THOMPSON SAID THE COMPANY IS SOLICITING NEW CONTRACTS AND HE EXPECTS NEW BUSINESS TO REPLACE THE LOST REVENUE 9311010110 931015 OUR WHEAT WAR WITH CANADA BY JAMES BOVARD THE CLINTON ADMINISTRATION IS ON THE BRINK OF IMPOSING EMERGENCY QUOTAS ON WHEAT IMPORTS FROM CANADA IF MR CLINTON SUCCUMBS TO THIS PROTECTIONIST TEMPTATION ONCE AGAIN PANDERING TO CONGRESSIONAL PRESSURE IT COULD RESULT IN A CANADIAN REJECTION OF NAFTA AND A COLLAPSE OF US CREDIBILITY IN THE GATT NEGOTIATIONS RESTRICTING WHEAT IMPORTS COULD ALSO DESTROY AMERICAN FOOD MANUFACTURING JOBS DURUM WHEAT THE BONE OF THIS TRADE CONFLICT IS USED FOR PASTA CERTAIN CEREALS AND SOME ITALIAN BREADS IMPORTS OF CANADIAN DURUM HAVE INCREASED IN RECENT YEARS AND NOW ACCOUNT FOR ROUGHLY 20 OF US CONSUMPTION TO ADD INSULT TO SUPPOSED INJURY CANADIAN DURUM WHEAT IS OFTEN OF HIGHER QUALITY THANKS TO SUPERIOR CANADIAN GRAINHANDLING PRACTICES NATURALLY THE PERFIDIOUS IMPORTS HAVE SPARKED OUTRAGE ON CAPITOL HILL AND THE WHITE HOUSE APPEARS TO HAVE JUMPED ON THE BANDWAGON SEN MAX BAUCUS D MONT PROCLAIMED CANADIAN UNFAIR TRADE PRACTICES PUT JAPAN TO SHAME NINE FARMSTATE SENATORS SENT A LETTER TO AGRICULTURE SECRETARY MIKE ESPY ON SEPT 9 DEMANDING AN IMMEDIATE INITIATION OF TRADE ACTION TO RESTRICT US IMPORTS OF CANADIAN WHEAT UNDERSECRETARY OF AGRICULTURE GENE MOOS TOLD THE SENATE AGRICULTURE COMMITTEE ON SEPT 21 THAT HE HAD FORMALLY RECOMMENDED THAT THE PRESIDENT CONSIDER AN EMERGENCY PROCLAMATION ESTABLISHING QUOTAS ON THE IMPORT OF CANADIAN WHEAT AND US TRADE REPRESENTATIVE MICKEY KANTOR DECLARED THAT WE'RE LOOKING AT MOVING VERY QUICKLY ON THE PROPOSAL FOR IMPORT QUOTAS ON WHEAT FARMSTATE SENATORS HAVE PICKED AN UNFORTUNATE TIME TO DENOUNCE IMPORTS SINCE US DURUM WHEAT PRICES ROUGHLY 450 A BUSHEL ARE FAR ABOVE FEDERAL TARGET PRICES PRICES PICKED BY CONGRESSMEN TO GUARANTEE MOST FULLTIME FARMERS A GENEROUS PROFIT BUT THE REASON THAT POLITICIANS ARE CLAMORING NOW IS THAT THEY SMELL A CHANCE TO CUT A DEAL WITH MR CLINTON SOME SENATORS ARE TRYING TO RANSOM THEIR VOTES TO OPEN THE BORDER WITH MEXICO VIA NAFTA WITH A CLINTON ADMINISTRATION PROMISE TO CLOSE THE BORDER TO CANADA WHILE NORTHERN MIDWEST SENATORS BUSILY DENOUNCE CANADIAN IMPORTS THEIR STATES ACTUALLY MAY BE HURT MORE BY THE SHARP CUTBACKS IN WHEAT PRODUCTION CAUSED BY FEDERAL ACREAGE IDLING PROGRAMS US PRODUCTION OF DURUM WHEAT HAS NOSEDIVED SINCE 1981 FALLING FROM 58 MILLION ACRES ANNUALLY TO JUST OVER TWO MILLION ACRES IN 1993 THE CONSERVATION RESERVE PROGRAM CRP UNDER WHICH THE GOVERNMENT PAYS FARMERS TO IDLE THEIR LAND FOR 10 YEARS IS THE LARGEST SINGLE SETASIDE PROGRAM SEN KENT CONRAD D ND COMPLAINED IN 1992 THAT THE CRP HAS ABSOLUTELY WIPED OUT SMALL TOWN AFTER SMALL TOWN AS WE TOOK LAND OUT OF PRODUCTION NORTH DAKOTA FARMERS MAY BE ENRAGED BY THE DURUM IMPORTS IN PART BECAUSE WHILE CANADIAN FARMERS ARE PLANTING FENCEROWTOFENCEROW MUCH OF THE US FARMLAND THAT COULD PRODUCE DURUM WHEAT HAS BEEN SEMIPERMANENTLY SHUT DOWN BY THE CRP EVEN THOUGH US FARMERS ARE NOT EVEN GROWING ENOUGH DURUM TO MEET US CONSUMPTION THE US GOVERNMENT IS STILL SPENDING LAVISHLY TO DUMP US DURUM WHEAT ON WORLD MARKETS THE US WILL SUBSIDIZE THE EXPORTS OF MORE THAN 30 MILLION BUSHELS OF DURUM WHEAT THIS YEARROUGHLY EQUAL TO THE AMOUNT OF CANADIAN IMPORTS ON SEPT 23 THE AGRICULTURE DEPARTMENT ANNOUNCED MASSIVE SUBSIDIES OF DURUM WHEAT EXPORTS TO SOUTH AFRICAENTITLING AMERICAN TAXPAYERS TO PAY A SUBSIDY OF 175 PER BUSHEL FOR THE EXPORT OF WHEAT THE DEPARTMENT WILL SPEND ROUGHLY 700 MILLION TO DUMP WHEAT ON WORLD MARKETS THIS YEAR WHEAT EXPORT SUBSIDIES HAVE BECOME SO GENEROUS THAT THEY ARE UNDERCUTTING UNSUBSIDIZED EXPORTS OF US CORN THE COMBINATION OF FALLING US PRODUCTION OF DURUM AND ARTIFICIALLY INCREASED DEMAND FOR DURUM CAUSED BY EXPORT SUBSIDIES HAS DRIVEN THE US DURUM PRICE ABOVE THE WORLD PRICE NATURALLY THE HIGH PRICES HAVE BEEN A SIGNAL TO FOREIGN PRODUCERS THAT THE US MARKET NEEDS MORE DURUM IF THE US RESTRICTS CANADIAN WHEAT IMPORTS THE US PRICE OF DURUM WILL LIKELY SPIKE HIGHER THIS WOULD PUT AMERICAN PASTA MAKERS AT AN EVEN GREATER DISADVANTAGE AGAINST IMPORTS FOREIGNERS CAN BUY US WHEAT MUCH MORE CHEAPLY THAN CAN AMERICAN FOOD MANUFACTURERS US IMPORTS OF PASTA AND PASTA PRODUCTS HAVE MORE THAN DOUBLED SINCE 1985 WHEN THE AGRICULTURE DEPARTMENT BEGAN DUMPING US WHEAT ON THE WORLD MARKET AT FIRESALE PRICES THE US LAVISHLY SUBSIDIZED DURUM EXPORTS TO TURKEY WHERE THE WHEAT WAS PROCESSED INTO PASTA AND EXPORTED BACK TO THE US INDUSTRY EXPERTS PREDICT THAT IF MR CLINTON RESTRICTS CANADIAN WHEAT IMPORTS SOME US PASTAMAKING PLANTS COULD MOVE TO CANADA US SENATORS ARE LOUDLY DENOUNCING CANADIANS FOR EXPORTING SUBSIDIZED WHEAT BUT IN 1991 FEDERAL FARM POLICY FORCED AMERICAN TAXPAYERS AND CONSUMERS TO PAY WHEAT FARMERS SUBSIDIES EQUAL TO 78 OF THE TOTAL VALUE OF THE WHEAT PRODUCED IN THE US ACCORDING TO THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT FEDERAL FARM POLICY HAS TURNED WHEAT PRODUCTION A HISTORIC AMERICAN STRENGTH INTO A HEAVY BURDEN ON THE NATIONAL ECONOMY RATHER THAN DISPUTING OVER A FEW BUSHELS OF CANADIAN IMPORTS THE DEBATE SHOULD FOCUS ON HOW THE US GOVERNMENT HAS TURNED WHEAT PRODUCTION INTO A PERPETUAL BURDEN ON AMERICAN TAXPAYERS PRIOR TO THE FEDERAL TAKEOVER OF AGRICULTURE IN THE 1930S AMERICAN WHEAT FARMERS WERE A SYMBOL OF NATIONAL PRIDE NOWADAYS FEDERAL SUBSIDIES PER FULLTIME WHEAT FARMER FAR EXCEED WHAT THE US GOVERNMENT IS PROVIDING PER HOUSEHOLD OF FOOD STAMP RECIPIENTS UNFORTUNATELY THE WHEAT INDUSTRY IS IN SERIOUS DECLINE AS BRUCE WEBER OF CARGILL INC THE NATION'S LARGEST GRAIN EXPORTER COMPLAINED LAST YEAR STEPHANIE PATRICK OF CARGILL OBSERVED THAT THE DECLINE IN WHEAT EXPORTS IS REFLECTED IN THE VIRTUAL CLOSING OF THE TEXAS GULF A REGION ONCE DENSE WITH WHEATEXPORT FACILITIES AND THE JOBS THAT WENT WITH THEM THE US WOULD BE UNWISE TO TREAT CANADA LIKE SOME KIND OF LOPEARED HOUND DOG THAT CAN BE KICKED WITH IMPUNITY CANADA IS THE US'S MOST IMPORTANT TRADING PARTNER AND THE CANADIAN GOVERNMENT HAS PROMISED TO RETALIATE AGAINST THE US FOR ANY RESTRICTIONS ON DURUM IMPORTS SUPPONAFTA IN CANADA IS ALREADY ANEMIC AND ONE MORE US PROTECTIONIST ACTION AGAINST CANADIAN IMPORTS COULD SPELL NAFTA'S DEMISE MR CLINTON SHOULD NOT EXPORT THE US FOOD MANUFACTURING INDUSTRY BY RESTRICTING WHEAT IMPORTS BUYING VOTES FOR NAFTA BY IMPOSING IMPORT QUOTAS ON CANADIAN WHEAT WOULD BE LIKE SOMEONE PAWNING HIS AUTOMOBILE TO PAY FOR A TANKLOAD OF GASOLINE MR BOVARD WRITES OFTEN ON TRADE AND AGRICULTURE SEE RELATED LETTER LETTERS TO THE EDITOR EXPORT SUBSIDIES DESTROY FREE TRADE WSJ NOV 1 1993 9310150170 YY93 MM11 9311010099 931006 LEISURE & ARTS BIDDING FOR A PIECE OF COUTURE HISTORY BY TERI AGINS NEW YORK LIKE EVERY CLOTHESHORSE WITH A TASTE FOR THE DIVINE I FANTASIZE ABOUT WEARING COUTURE MOST RECENTLY THE SUMPTUOUS VICTORIAN TAFFETA AND TULLE COSTUMES IN THE FILM OF EDITH WHARTON'S THE AGE OF INNOCENCE LEFT ME BREATHLESS AND OVER THE PAST YEAR TWO RETROSPECTIVE EXHIBITS OF LEGENDARY COUTURIERS PAULINE TRIGERE AND VALENTINO HAVE DEEPENED MY REVERENCE FOR CLOTHES THAT ARE ALSO FINE ART I CAN'T AFFORD PARIS PRICES FOR TODAY'S COUTURE FROCKS BUT I BEGAN TO THINK I COULD BUY A TREASURE FROM THE PAST AT AUCTION LAST WEEK I JUMPED INTO THE FASHIONBIDDING FRAY WITH A 500 BUDGET I PICKED UP A PADDLE AT WILLIAM DOYLE GALLERIES WHERE MORE THAN A CENTURY OF FASHION FROM THE ATELIERS OF BALENCIAGA CHANEL SAINT LAURENT AND DIOR WENT ON THE BLOCK I SET MY SIGHTS ON OWNING A LITTLE PIECE OF HISTORY ONE OF 17 GOWNS MARIAN ANDERSON HAD WORN ON THE OPERA STAGE I COULD PRACTICALLY PICTURE THE GREAT COLORATURA MAKING A GRAND EXIT FROM THE METROPOLITAN OPERA HOUSE IN THE FLOORLENGTH NAVY AND DUSTY PINK FORMAL EVENING COAT EMBROIDERED WITH LEAFY SCROLLS FROM THE JOHN WANAMAKER FASHION SALON IN PHILADELPHIA THE PRESALE ESTIMATE 800 TO 1200 WAS OVER MY BUDGET BUT SOMETIMES AT AN AUCTION YOU GET LUCKY CLUTCHING MY ROYAL BLUE PADDLE NUMBER 237 I SETTLED INTO THE THIRD ROW A HALF HOUR BEFORE THE SALE BEGAN THE ROOM WAS FILLING QUICKLY BUZZING MOSTLY WITH WOMEN BRANDISHING DOGEARED AND PAPERCLIPPED CATALOGS THE WOMAN SEATED NEXT TO ME OBVIOUSLY KNEW HOW TO SURVIVE A FOURHOUR SALE SHE HAD BROUGHT HER KNITTING A LITER OF EVIAN AND A SANDWICH AND WAS WAITING CALMLY FOR THE COSTUME JEWELRY TO COME UP SHE DIDN'T HAVE TO WORRY ABOUT THE FIT OF THE NECKLACES AND BROOCHES BUT THE REST OF US WHO WERE SHOPPING FOR CLOTHES TO WEAR HAD NO IDEA IF THE DRESSES WE HAD OUR EYES ON WOULD SLIP OVER OUR HIPS AUCTION HOUSES UNDERSTANDABLY WON'T LET CUSTOMERS TRY ON THE RARITIES THEY'RE SELLING SO BUYING VINTAGE CLOTHES AT AUCTION IS A GUESSING GAME IN WHICH A GOOD EYE AND A KNOWLEDGE OF APPAREL HISTORY COME IN HANDY PATRICIA MEARS THE COSTUME CURATOR AT THE BROOKLYN MUSEUM BRAGS THAT IN THE FIVE YEARS SHE'S BEEN BUYING OLD COUTURE CLOTHES SHE'S LEARNED HOW TO EYEBALL THE SILHOUETTES FROM A DISTANCE AT THE PREAUCTION EXHIBIT SHE VERIFIES THE CRITICAL WAIST AND HIP SIZES WITH A TAPE MEASURE SHE KNOWS THAT COUTURE CUSTOMERS OF YESTERYEAR WERE USUALLY AROUND A SIZE 6 OR 8 BUT THEIR CLOTHES HAD NARROWER SHOULDERS AND BACKS THAN TODAY'S DRESSES OF THE SAME SIZE CUT FOR WOMEN WHO PREDATED THE JANE FONDA WORKOUT AND SHE KEEPS IN MIND THAT THE DRESSES FROM THE 1930S TEND TO BE ROOMIER BECAUSE THEY WERE CUT ON THE BIAS BUT THOSE FROM THE 1950S HAD SCULPTED WAISTLINES IT HELPS IF YOU'RE TINY BUT EVEN A STATELY SIZE 12 LIKE MICHELLE COLLIER A REDHEADED ADVERTISING EXECUTIVE HAS MANAGED TO FIT INTO 150 VINTAGE DANCE DRESSES INCLUDING ONE FROM THE 1860S SHE CHOOSES STYLES WITH MANY SEAMS THAT CAN BE LET OUT SHE ALSO KNOWS HOW TO CAMOUFLAGE DAMAGE CAUSED BY PREVIOUS OWNERS HIDING ARMPIT STAINS WITH ROWS OF STITCHING AND STRATEGICALLY PLACING A PIECE OF COSTUME JEWELRY OVER STUBBORN SPOTS OF CHAMPAGNE THAT HAVE TURNED BROWN OVER TIME THE AUCTION BIDDING GOT OFF TO A FAST ROLL AS MUSEUM DEALERS SCOOPED UP THE 19THCENTURY GARB INCLUDING A FULLSKIRTED SCARLET DAY DRESS FROM THE 1850S THAT WENT FOR 1500 FIVE TIMES THE ESTIMATE EVERYONE WAS SURPRISED WHEN A SPIRITED BIDDING DUEL ERUPTED OVER A NAVY PIERRE CARDIN MINIDRESS FROM THE DESIGNER'S COUTURE HEYDAY IN THE 1960S IT WAS KNOCKED DOWN FOR 3000 OR 20 TIMES THE ESTIMATE BY AN UNKNOWN TELEPHONE BIDDER BARGAIN HUNTERS ALSO PREVAILED TONYA HALL A PHOTO STYLIST DRESSED IN JEANS AND A LEATHER JACKET CLAPPED WHEN SHE BAGGED THE FLARED TRIGERE EVENING COAT IN BLACK SILK FAILLE FOR 175 NOW YOU GO GIRL HER FRIEND SHRIEKED I FLASHED BACK TO A RECENT VIDEO OF MS TRIGERE WHO IS STILL ACTIVE AFTER 50 YEARS ON SEVENTH AVENUE DRAPING HEAVY SILK FABRIC ON A LIVE MODEL PINNING AND WHACKING AWAY WITH SHEARS THE SIZE OF HEDGE TRIMMERS I SHIFTED IN MY SEAT AS MARIAN ANDERSON'S EVENING COAT WAS BROUGHT IN NO ONE MADE AN OPENING BID PROMPTING THE AUCTIONEER TO DRUM UP A MARKDOWN EIGHT HUNDRED 600 400 HE SHOUTED WHEN I SHEEPISHLY RAISED PADDLE 237 TOO LATE FOR HIM TO SEE HE SAID PASS AND WHIZZED ON TO THE NEXT LOT KEEP YOUR PADDLE UP SO YOU CAN BE READY MS COLLIER THE REDHEAD SUGGESTED LATER SHE PROVED TO BE QUICK ON THE DRAW AND BOUGHT A PEACH AND BLACK SILK DINNER DRESS FROM THE 1930S FOR 325 FRUSTRATED I SLIPPED BACKSTAGE TO MAKE ANOTHER PITCH FOR MY EVENING COAT AN OFFICIAL AT WILLIAM DOYLE PROMISED TO APPROACH THE SELLERS WITH MY LATE BID OF 500 BUT I WAS NOT THE ONLY PLAYER IN THE BALLPARK ANOTHER WOMAN CAME IN AND TOPPED ME AT 1200 SHE PLANS TO DONATE THE COAT TO A MUSEUM WELL I STILL HAVE MY 500 NEXT YEAR I'LL BE SITTING IN THE FRONT ROW WITH MY PADDLE BRACED TO BID MS AGINS COVERS THE FASHION INDUSTRY FOR THE JOURNAL IN NEW YORK SEE RELATED LETTER LETTERS TO THE EDITOR THE RARE CONTRALTO WSJ NOV 1 1993 9310060108 YY93 MM11 9311010111 930928 REVIEW & OUTLOOK EDITORIAL BAD BOYS PRESIDENT CLINTON ACKNOWLEDGED THE NATION'S HORRIFIC OUTBREAK OF JUVENILE VIOLENCE IN A SPEECH FRIDAY AT A REHABILITATION CENTER FOR TEENAGERS IN ST PETERSBURG BEACH FLORIDA HOMICIDE IS THE SECOND LEADING CAUSE OF DEATH AMONG AMERICANS AGED 15 TO 25 AND MORE OF OUR TEENAGE BOYS DIE FROM GUNSHOTS NOW THAN ANY OTHER CAUSE HE SAID BUT THE PROBLEM GOES DEEPER THAN THE PRESUMED MAGIC OF A GUNCONTROL LAW SINCE 1965 THE NUMBER OF JUVENILES ARRESTED FOR VIOLENT CRIMES HAS TRIPLED IN FLORIDA A 13YEAROLD AND A 15YEAROLD ARE SUSPECTS IN THE KILLING OF A BRITISH TOURIST THIS MONTH IN NORTH CAROLINA TWO 18YEAROLDS WITH CRIMINAL HISTORIES HAVE BEEN CHARGED WITH THE MURDER OF MICHAEL JORDAN'S FATHER WHEN ASKED TO NAME A CAUSE FOR THE INCREASE IN YOUTH VIOLENCE LAW ENFORCEMENT OFFICIALS LARGELY SINGLE OUT THE NATION'S SYSTEM OF SOCALLED JUVENILE JUSTICE SET UP SOME 30 YEARS AGO TO PROTECT IMMATURE KIDS WHO MIGHT GET ARRESTED FOR TRUANCY SHOPLIFTING OR JOY RIDING IT IS ILL EQUIPPED TO COPE WITH THE VIOLENT CHILDREN OF THE 1990S WHO ARE ROBBING RAPING AND MURDERING THE CURRENT SYSTEM IS ESSENTIALLY A LICENSE TO KILL NO MATTER HOW AWFUL THE CRIME VIOLENT YOUNGSTERS RARELY GET MORE THAN A SUSPENSION OR YEAR OR TWO IN JAIL ALSO JUVENILE RECORDS ARE SEALED SO A VIOLENCEPRONE YOUTH CAN KEEP APPEARING IN COURT WITH LITTLE RECORD OF HIS PAST CRIMINAL BEHAVIOR INSTEAD OF DETERRING CRIME THE MESSAGE IS CRIME PAYS BY THE TIME THE KID REACHES ADULTHOOD VIOLENCE IS OFTEN SIMPLY A WAY OF LIFE BUT MAYBE NOT IN COLORADO WHERE GOVERNOR ROY ROMER HAS JUST SIGNED A LAW THAT WILL RADICALLY CHANGE HIS STATE'S JUVENILE JUSTICE SYSTEM OUR OLD SYSTEM WAS A JOKE SAYS GOVERNOR ROMER THE COLORADO REFORMS PASSED DURING A SPECIAL FIVEDAY SESSION OF THE LEGISLATURE THIS MONTH MAKE JUVENILE JUSTICE SWIFTER SURER AND TOUGHER THEY CREATE A SEPARATE NOFRILLS PENAL SYSTEM FOR JUVENILE OFFENDERS SPEED UP THE JUVENILE COURT PROCESS AND MAKE PUBLIC THE RECORDS OF VIOLENT JUVENILES THE GOAL WHICH IS BENEVOLENT AT HEART IS TO TEACH YOUTHS THAT ACTIONS HAVE CONSEQUENCES IN COLORADO A KID WHO EMBARKS ON A LIFE OF CRIME WILL BE ENCOURAGED TO THINK TWICE ABOUT HIS CAREER OPTIONS IRONICALLY THE MOST PUBLICIZED FEATURE OF THE NEW LAW IS THE ONE THAT WILL PROBABLY HAVE THE LEAST DETERRENT EFFECT A BAN ON POSSESSION OF HANDGUNS BY ANYONE UNDER THE AGE OF 18 AFTER ACRIMONIOUS DEBATE EVEN THE NRA RELUCTANTLY GAVE ITS SUPPORT TO THE BAN WHICH MAKES AN EXCEPTION FOR JUVENILES WHO ARE HUNTING TARGET SHOOTING OR TRAINING IN EXPLAINING THE REFORMS STATE ATTORNEY GENERAL GALE NORTON PROPOSES THE NOWRADICAL NOTION THAT GOVERNMENT HAS THE OBLIGATION TO PROTECT ITS CITIZENS WE'RE CHANGING OUR SYSTEM FROM ONE THAT WAS ORIENTED ENTIRELY TOWARD THE BEST INTERESTS OF THE CHILD AND ALSO LOOKS AT THE BEST INTERESTS OF THE COMMUNITY SHE SAYS IN CONTRAST TO A JANET RENO OR PRESIDENT CLINTON WHO STILL TALK ABOUT ADDRESSING THE ROOT CAUSES OF CRIME THROUGH INCREASED SOCIAL SPENDING SHE SAYS WE HAVE FOCUSED ON PREVENTION FOR A LONG TIME NOW WE'RE REINTRODUCING PUNISHMENT IF BY DOING SO COLORADO DETERS SOME CHILDREN FROM TURNING INTO PREDATORS IT WILL SUCCEED IN A WAY THAT 30 YEARS OF SOCIAL SPENDING HAVEN'T YOUNG THUGS ARE TERRORIZING MUCH OF THE COUNTRY THE COLORADO PLAN BEARS WATCHING SEE RELATED LETTER LETTERS TO THE EDITOR CRIME'S ROOTS GROW DEEP WSJ NOV 1 1993 9309280088 YY93 MM11 9311010096 930910 POLITICS & POLICY VERNON JORDAN FIRST PAL OF THE PRESIDENT UNITES APPARENT OPPOSITES INSIDER CIVILRIGHTS VETERAN BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE REASON WHY VERNON JORDAN TURNED DOWN THE CHANCE TO BECOME THE FIRST BLACK ATTORNEY GENERAL BECOMES CLEARER EVERY DAY WHY GO TO WORK FOR BILL CLINTON WHEN YOU CAN BE FIRST PAL PEOPLE WHO WORK FOR MR CLINTON AFTER ALL ARE SUBJECT TO A FISHBOWL EXISTENCE GRUELING HOURS AND MR CLINTON'S FAMOUSLY SHORT TEMPER THE FIRST PAL BY CONTRAST GOES SAILING GOLFING AND DINING WITH THE PRESIDENT WHITE HOUSE STAFFERS REFER TO HIM AS THE AMBASSADOR FOR FUN GETS SUMMONED TO GIVE ADVICE ON MOMENTOUS ISSUES AND STILL GETS TO PURSUE AN ENORMOUSLY LUCRATIVE OUTSIDE CAREER AT LEAST ONE FRIEND SEES GREAT SIGNIFICANCE IN MR JORDAN NOT TAKING A JOB IN THE ADMINISTRATION IT IS GREAT TO SEE A BLACK MAN THAT THE PRESIDENT NEEDS MORE THAN HE NEEDS THE PRESIDENT SAYS ELEANOR HOLMES NORTON THE DISTRICT OF COLUMBIA'S DELEGATE TO CONGRESS MR JORDAN EARNS MORE THAN 1 MILLION A YEAR AS A PARTNER IN THE HIGHPOWERED WASHINGTON LAW FIRM OF AKIN GUMP STRAUSS HAUER & FELD AND AN ADDITIONAL 500000 SERVING ON CORPORATE BOARDS INCLUDING DOW JONES & CO WHICH PUBLISHES THIS NEWSPAPER BUT IT'S HIS PAST THAT SETS HIM APART FROM THE BEBE REBOZOS AND HARRY VAUGHANS CRONIES OF PREVIOUS PRESIDENTS AND MAKES HIM SUCH AN INTRIGUING FIGURE HE'S NOT JUST ANY WASHINGTON INSIDER BUT A CHILD OF THE JIM CROW SOUTH HE WAITED ON TABLES AS A TEENAGER IN ATLANTA AND COLLEGE STUDENT AT INDIANA'S DEPAUW UNIVERSITY AS A YOUNG LAWYER HE ESCORTED THE FIRST BLACKS THROUGH A JEERING MOB TO CLASSES AT THE UNIVERSITY OF GEORGIA HE MARCHED IN PROTESTS FOR A DECADE HE HEADED THE NATIONAL URBAN LEAGUE ONE OF THE NATION'S TOP CIVILRIGHTS ORGANIZATIONS AND HE WAS SHOT AND SERIOUSLY WOUNDED IN A LATENIGHT AMBUSH THAT IMPECCABLE CIVILRIGHTS RECORD PROVIDES SOME COVER TO COUNTER CRITICS' ATTACKS ON MR JORDAN'S INTEGRITY AS A HIGHPRICED RAINMAKER FOR ONE OF THE COUNTRY'S MOST AGGRESSIVE LOBBYING OPERATIONS EVEN FORMER DEMOCRATIC NATIONAL CHAIRMAN ROBERT STRAUSS THE PARTNER IN THE FIRM WHO RECRUITED MR JORDAN ACKNOWLEDGES THAT HIS COLLEAGUE ISN'T PAID FOR HIS WORK IN THE COURTROOM OR KNOWLEDGE OF THE LAW VERNON KNOWS HE'S NOT THE WORLD'S GREATEST LAYWER AND HE DIDN'T HIRE OUT TO BE THAT SAYS MR STRAUSS RATHER HE SAYS PEOPLE HIRE MR JORDAN FOR HIS GOOD JUDGMENT BUT IN SPITE OF MR JORDAN'S PAST OR MAYBE BECAUSE OF IT HIS ROLE CAUSES SOME RESENTMENT AMONG OTHER BLACK LEADERS WHILE MANY BLACK LEADERS SPEAK FAVORABLY OF HIM IN PUBLIC SOME INCLUDING JESSE JACKSON AND CIVILRIGHTS ACTIVIST ROGER WILKINS ARE PRIVATELY CRITICAL THEY WONDER WHETHER MR JORDAN'S PRINCIPAL GOAL IS TO HELP OTHER BLACKS TO HELP HIS LAW FIRM ATTRACT BUSINESS OR TO HELP HIMSELF ACCESS SPELLS INFLUENCE SAYS RONALD WALTERS CHAIRMAN OF THE HOWARD UNIVERSITY POLITICAL SCIENCE DEPARTMENT WHO LIKENS MR JORDAN TO BOOKER T WASHINGTON BOTH MEN HE EXPLAINS WERE CLOSE TO PRESIDENTS BUT THE BLACK COMMUNITY AT TIMES QUESTIONED THEIR COMMITMENT OF MR JORDAN HE SAYS I DON'T PRETEND THAT HE HAS TAKEN ON THE ROLE OF BROKERING BLACK INTERESTS SOME WHITE LIBERALS ARE CRITICAL TOO CHARLES LEWIS DIRECTOR OF THE CENTER FOR PUBLIC INTEGRITY SAYS THAT BEING AT AKIN GUMP AND SCHMOOZING AT THE JOCKEY CLUB HE IS FAR REMOVED FROM THE URBAN LEAGUE HE IS NOT A PERSON WE SEE ON THE CUTTING EDGE OF CIVIL RIGHTS OR LIBERAL CAUSES MR JORDAN'S DEFENDERS THOUGH ARGUE THAT IT'S UNFAIR TO SUGGEST THAT BECAUSE OF MR JORDAN'S CIVILRIGHTS BACKGROUND HE'S SOMEHOW A SELLOUT NOW BECAUSE HE HOBNOBS WITH THE PRESIDENT AND MAKES LOTS OF MONEY MS NORTON FOR EXAMPLE SEES IT AS A CASE OF THE 58YEAROLD MR JORDAN HAVING MOVED ON TO A DIFFERENT PHASE IN HIS LIFE I'M NOT A CIVILRIGHTS LEADER ANY MORE SHE QUOTES HIM AS SAYING MR JORDAN HIMSELF INSISTS HE HAS NO AGENDA I WOULD HOPE THAT PEOPLE WOULD COME TO OUR LAW FIRM BECAUSE OF OUR SUCCESS RECORD AND OUR LEGAL SKILLS NOT BECAUSE OF ANY RELATIONSHIP WITH THE PRESIDENT HE SAYS INDEED MR JORDAN SAYS HE NEVER EVEN LOBBIED FOR HIS STEPDAUGHTER TONI COOK BUSH A SENATE AIDE WHO AT ONE TIME WAS THOUGHT TO BE IN LINE FOR NOMINATION TO CHAIR THE FEDERAL COMMUNICATIONS COMMISSION BEFORE SHE WITHDREW FROM CONTENTION FOR PERSONAL REASONS I DIDN'T SAY A WORD TO MR CLINTON MR JORDAN INSISTS THAT WAS BETWEEN TONI AND THE ADMINISTRATION I HAD NOTHING TO DO WITH IT ONE WAY OR THE OTHER THE INTERESTS HE MOST HAS AT HEART IN HIS CURRENT ROLE HE SAYS ARE BILL CLINTON'S HE WAS ONE OF THOSE TO WHOM MR CLINTON REACHED OUT AFTER VINCE FOSTER THE PRESIDENT'S BOYHOOD FRIEND AND THE WHITE HOUSE DEPUTY COUNSEL COMMITTED SUICIDE I JUST THINK IT IS IMPORTANT TO BE THERE FOR YOUR FRIEND MR JORDAN SAYS HE HAS BEEN THERE FOR ME I HAVE BEEN THERE FOR HIM SOMETIMES BEING THERE FOR HIS FRIEND MEANS BEARING BAD NEWS WHEN MR CLINTON WAS STUMBLING POLITICALLY IN THE SPRING HE RECEIVED A LATEEVENING VISIT FROM MR JORDAN AND SECRETARY OF STATE WARREN CHRISTOPHER WHO HAD BEEN RESPECTIVELY CHAIRMAN AND OPERATING CHIEF OF HIS PRESIDENTIAL TRANSITION THEIR MESSAGE WAS POINTED THE TRANSITION EFFORT HAD CONCENTRATED TOO MUCH ON THE CABINET AND NOT ENOUGH ON THE WHITE HOUSE STAFF THEY TOLD HIM A STAFF SHAKEUP WAS BADLY NEEDED A SHORT TIME LATER MR CLINTON HIRED DAVID GERGEN AS HIS COUNSELOR AND SHIFTED OTHER STAFF MR JORDAN ALSO SERVED AS TROUBLESHOOTER WHILE HOSTING THE PRESIDENT'S MARTHA'S VINEYARD VACATION LAST MONTH A BELATED WRITTEN REQUEST WAS MADE FOR MR CLINTON TO ATTEND THE MARCH COMMEMORATING MARTIN LUTHER KING JR'S MARCH ON WASHINGTON 30 YEARS AGO SHOULD MR CLINTON CUT SHORT HIS VACATION TO ATTEND MR JORDAN RECOMMENDED THE PRESIDENT KEEP PLAYING AND TELEPHONE HIS SUPPORT TO CIVILRIGHTS LEADERS BUT SOMETIMES BEING THERE FOR HIS FRIEND ALSO MEANS BEING PUT INTO PERSONALLY UNCOMFORTABLE POSITIONS FOR INSTANCE THE DAY MR CLINTON DECIDED TO DUMP LANI GUINIER AS HIS NOMINEE FOR THE GOVERNMENT'S TOP CIVILRIGHTS POST MR JORDAN SAYS HE SENT FOR ME HE HAD A PROBLEM AND HE WANTED TO DISCUSS THE PROBLEM MR JORDAN REFUSES TO DISCUSS HIS ADVICE TO THE PRESIDENT SAYING THE ONE THING ABOUT FRIENDSHIP IS THE INTIMACIES OF IT ARE NOT DISCUSSABLE BUT IT'S WIDELY KNOWN THAT HE DIDN'T FIGHT FOR MS GUINIER'S NOMINATION LESS WIDELY KNOWN IS THAT HE WAS ASKED BUT REFUSED TO BE THE ENVOY TO MS GUINIER TO TELL HER THAT SHE WAS BEING JETTISONED IF SUCH EPISODES SPARK RESENTMENT AMONG SOME OF HIS OLD ACTIVIST COLLEAGUES MR JORDAN HIMSELF SUGGESTS HE HAS ALREADY PAID HIS DUES THIS IS NOT THE BEGINNING OF MY CAREER HE SAYS I HOPE THERE ARE SOME THINGS IN MY CAREER LONG BEFORE THIS VERY PUBLIC RELATIONSHIP WITH THE PRESIDENT THAT WOULD INSPIRE YOUNG PEOPLE SEE RELATED LETTERS LETTERS TO THE EDITOR VERNON JORDAN IS STILL CIVIL RIGHTS CHAMPION WSJ NOV 1 1993 9309100036 YY93 MM11 9310290197 931029 MCDONNELL DOUGLAS MAY POST CHARGE OF 450 MILLION BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MCDONNELL DOUGLAS CORP SAID IT COULD TAKE AS MUCH AS 450 MILLION IN FUTURE CHARGES AGAINST PRETAX EARNINGS RELATING TO ITS C17 MILITARY TRANSPORT BUT WHETHER THE COMPANY TAKES ANY CHARGES AS WELL AS THE SIZE OF THOSE CHARGES DEPENDS ON THE RESOLUTION OF ITS CLAIMS AGAINST THE MILITARY FOR WHAT THE COMPANY HAS SAID WAS ADDED WORK DUE TO ALTERED INSTRUCTIONS IN BUILDING THE ADVANCED AIRLIFTER PEOPLE FAMILIAR WITH THE CLAIMS HAVE SAID THEY COULD TOTAL 16 BILLION MCDONNELL DOUGLAS SAID ANY SETTLEMENT WON'T HAVE AN IMPACT ON THIRDQUARTER FINANCIAL RESULTS TO BE RELEASED MONDAY AND IT SAID ANY CHARGES WOULD NOT RESULT IN ANY SIGNIFICANT ADVERSE CASH IMPACT THE ST LOUISBASED COMPANY THE NATION'S LARGEST DEFENSE CONTRACTOR ALREADY HAS WRITTEN DOWN ABOUT 1 BILLION CONNECTED WITH DEVELOPMENT PROBLEMS ON THE C17 THE COMPANY'S STATEMENT ESTABLISHING A 450 MILLION CEILING FOR ANY FUTURE CHARGES CAME JUST DAYS AFTER PENTAGON AND CONGRESSIONAL OFFICIALS DISCLOSED THAT THE DEFENSE DEPARTMENT WANTS TO SLASH ITS PLANNED PURCHASE OF THE JETS TO AS FEW AS 40 UNTIL NOW THE GOVERNMENT HAS COMMITTED TO BUY 120 OF THE AIRCRAFT FOR ABOUT 40 BILLION PENTAGON ACQUISITION CHIEF JOHN DEUTCH WHO HEADS A MAJOR DEFENSE ACQUISITION BOARD REVIEW LOOKING INTO THE C17 HAS TOLD CONGRESSIONAL LEADERS THAT PURCHASES SHOULD BE LIMITED TO 40 AIRCRAFT THROUGH 1997 UNLESS THE COMPANY CAN SHOW IT HAS SUCCESSFULLY TACKLED QUALITY AND PERFORMANCE PROBLEMS JOHN F MCDONNELL THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE SAID HE BELIEVES AN OVERALL SETTLEMENT WOULD BE WARRANTED TO END CONFLICTS BETWEEN THE GOVERNMENT AND MCDONNELL DOUGLAS AND TO ENSURE CONTINUED PRODUCTION OF THE C17 THE COMPANY SAID ALTERNATIVES TO A SETTLEMENT INCLUDE A GOVERNMENT TERMINATION OF THE PROGRAM OR PURCHASE OF FEWER THAN 120 AIRCRAFT 9310290196 931029 WHO'S NEWS SARA LEE CORP SARA LEE CORP CHICAGO C STEVEN MCMILLAN 47YEAROLD SENIOR VICE PRESIDENT OF THIS CONSUMER PRODUCTS CONCERN WAS NAMED EXECUTIVE VICE PRESIDENT AND ELECTED A DIRECTOR TWO DIRECTORS DIDN'T STAND FOR REELECTION REDUCING THE BOARD'S SIZE TO 18 9310290195 931029 WHO'S NEWS SPX CORP SPX CORP MUSKEGON MICH J KERMIT CAMPBELL WAS NAMED A DIRECTOR OF THIS MANUFACTURER OF COMPONENTS AND TOOLS FOR THE MOTOR VEHICLE INDUSTRY MR CAMPBELL 54 YEARS OLD FILLS ONE OF TWO VACANCIES CREATED IN APRIL BY THE RETIREMENTS OF G JAMES WILLIAMS AND DAVID K EASLICK 9310290194 931029 WHO'S NEWS ENSERCH CORP ENSERCH CORP DALLAS DIANA S NATALICIO WAS ELECTED A DIRECTOR OF THIS NATURALGAS COMPANY INCREASING THE BOARD'S SIZE TO 10 MEMBERS MS NATALICIO 54 YEARS OLD HAS BEEN PRESIDENT OF THE UNIVERSITY OF TEXAS AT EL PASO SINCE 1988 9310290193 931029 WHO'S NEWS RECOGNITION INTERNATIONAL INC RECOGNITION INTERNATIONAL INC DALLAS LUCIE J FJELDSTAD WAS NAMED A DIRECTOR OF THIS IMAGING TECHNOLOGY COMPANY INCREASING THE SIZE OF THE COMPANY'S BOARD TO EIGHT MS FJELDSTAD 49 YEARS OLD FORMERLY WAS VICE PRESIDENT AND GENERAL MANAGER OF MULTIMEDIA AT INTERNATIONAL BUSINESS MACHINES CORP 9310290192 931029 WHO'S NEWS JOSTENS INC JOSTENS INC MINNEAPOLIS ROBERT P JENSEN 67 YEARS OLD A DIRECTOR SINCE 1980 WAS NAMED CHAIRMAN OF THIS MAKER OF CLASS RINGS AND YEARBOOKS SUCCEEDING H WILLIAM LURTON 64 WHO IS RETIRING AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE COMPANY SAID IT WILL CONDUCT A SEARCH FOR A CHIEF EXECUTIVE BUT THAT MR JENSEN WILL PERFORM THE FUNCTIONS OF THAT OFFICE 9310290191 931029 JAPANESE USE MORE WORKERS IN PRODUCTION STUDY FINDS WASHINGTON JAPANESEOWNED FACTORIES IN THE US TEND TO EMPLOY MORE PRODUCTION WORKERS AND FEWER PROFESSIONAL AND TECHNICAL WORKERS THAN FACTORIES OWNED BY US COMPANIES OR OTHER FOREIGNERS A NEW STUDY BY THE BUREAU OF LABOR STATISTICS SHOWS FOR INSTANCE 857 OF THE WORKERS IN JAPANESEOWNED TRANSPORTATIONEQUIPMENT PLANTS WERE IN PRODUCTION COMPARED WITH AN INDUSTRY AVERAGE OF 605 ONLY 64 WERE IN PROFESSIONAL PARAPROFESSIONAL OR TECHNICAL JOBS COMPARED WITH 223 IN ALL PLANTS IN THE INDUSTRY THE TRANSPORTATIONEQUIPMENT SECTOR INCLUDES AUTO FACTORIES THE 1989 DATA PROVIDE SOME EVIDENCE THAT THE JAPANESE ARE MOVING PRODUCTION JOBS TO THE US BUT KEEPING IMPORTANT TECHNICAL AND RESEARCH JOBS IN JAPAN BUT SOME ECONOMISTS WHO HAVE STUDIED THE MATTER SAY THEY STILL DOUBT THAT THAT'S GOING ON BY OTHER MEASURES SUCH AS THE AMOUNT OF US RESEARCH AND DEVELOPMENT DONE PER WORKER THE JAPANESE DON'T COME OUT AS GREATLY DIFFERENT SAID EDWARD GRAHAM OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS 9310290190 931029 OIL COMPANIES HOLDING BACK ON CHINA FIELD TOUGH TERMS OF CONTRACT GEOLOGICAL CRITICISMS COOL BIDDING INTEREST BY JILL GOLDSMITH SPECIAL TO THE WALL STREET JOURNAL NEW YORK CHINA'S MUCHHERALDED FIRST MOVE TO OPEN A MAJOR ONSHORE CONCESSION IN ITS TARIM BASIN TO FOREIGN OIL COMPANIES HASN'T SPARKED MUCH ENTHUSIASM FROM POTENTIAL BIDDERS THE GIANTS OF INTERNATIONAL OIL ARE CURRENTLY PONDERING WHETHER TO BID FOR A CONTRACT TO DEVELOP FIVE LOTS AT TARIM IN A DESERT IN CHINA'S NORTHWEST CORNER BUT INDUSTRY SOURCES SAY THE TERMS OF THE MODEL CONTRACT CHINA OFFERS IN THE BASIN ARE HARSH THEY ALSO CRITICIZE THE GEOLOGICAL MAKEUP OF THE AREA AND ITS LOCATION FAR FROM CHINA'S POPULATION CENTERS IN THE EAST NECESSITATING COSTLY PIPELINES THE FIVE FIELDS DON'T BOAST THE MOST ATTRACTIVE GEOLOGY SAID DAVID FRIDLEY WHO RECENTLY LEFT THE EASTWEST INSTITUTE IN HONOLULU HE SAID CERTAIN CHARACTERISTICS OF THE FAULT LINES SAND LAYERS AND OTHER FEATURES AT THE SITE MAKE IT MORE EXPENSIVE TO DEVELOP AND LESS ATTRACTIVE THAN OTHER AREAS IN THE TARIM BASIN WHERE CHINESE COMPANIES ALREADY OPERATE IT'S PERFECTLY NORMAL THAT THE CHINESE WOULD WANT TO RESERVE THE BEST ACREAGE FOR THEMSELVES MR FRIDLEY SAID BUT IF THEY WANT TO ENCOURAGE FOREIGN INVOLVEMENT WHAT THEY'RE OFFERING NOW ISN'T TOO ENTICING OILHUNGRY CHINA RELUCTANTLY OFFERED THE FIELDS TO FOREIGNERS AS A FIRST STEP IN OPENING THE DOOR TO NEW CAPITAL AND TECHNOLOGY ENGAGED IN A PROLONGED GROWTH SPURT THE COUNTRY IS ON THE WAY TO BECOMING A NET IMPORTER OF OIL AND NEEDS HELP TO DEVELOP ITS DOMESTIC ENERGY RESOURCES THE PROBLEM IS THAT THE CHINESE CUT A PRETTY TOUGH DEAL SAID PAUL TING AN OILINDUSTRY ANALYST AT OPPENHEIMER & CO HE AND OTHERS NOTE THAT CHINESE CONTRACTS GENERALLY REQUIRE FOREIGN COMPANIES TO BEAR THE RISK OF EXPLORATION FOR YEARS AND CAN COMMIT THEM TO DRILL A FIXED NUMBER OF WELLS REGARDLESS OF WHETHER THEY FIND ANYTHING LARGE FOREIGN OIL COMPANIES HAVE BANDED TOGETHER TO RESEARCH THE FIVE LOTS ON THE AUCTION BLOCK AND DECIDE WHETHER TO PRESENT A BID BY SUNDAY'S DEADLINE MOBIL CORP AND EXXON CORP HAVE TEAMED UP WITH BRITISH GAS EXPLORATION & PRODUCTION LTD JAPAN'S SUMITOMO CORP AND INDONESIA PETROLEUM LTD AMOCO CORP JOINED ROYAL DUTCH/SHELL GROUP A SHELL UNIT CALLED PECTEN FRANCE'S TOTAL SA AND JAPAN'S MARUBENI CORP AND BRITISH PETROLEUM CO IS WORKING WITH JAPAN'S NIPPON OIL ITOCHU OIL MITSUBISHI CORP AND MITSUI & CO THE COMPANIES HAVE TO DECIDE WHETHER THEY WANT TO GET A FOOT IN THE DOOR OF CHINESE ONSHORE OPERATIONS IN HOPES THAT MORE ATTRACTIVE AREAS WILL BE OPENED UP LATER THE STRING OF MEMBERS IN EACH CONSORTIUM ALREADY INDICATES RELUCTANCE TO TAKE ON MORE THAN A LITTLE RESPONSIBILTY MR FRIDLEY SAID IT SHOWS THE COMPANIES WANT TO HEDGE THEIR RISKS AND SPREAD THE MONEY AROUND WHEN CHEVRON WENT INTO KAZAKHSTAN YOU DIDN'T SEE THEM TAKING ON ANY PARTNERS HE SAID REFERRING TO CHEVRON CORP WORK IN THE HUGE TENGIZ FIELD THE COMPANIES INVOLVED WON'T SAY WHETHER THEIR CONSORTIUMS PLAN TO BID BUT ONE INDUSTRY OFFICIAL SAID THE TERMS OF THE MODEL CONTRACT ARE SO ONEROUS THAT THEY DISCOURAGE SERIOUS BIDDING THE OFFICIAL SAID THE CONSORTIUM LED BY MOBIL AND EXXON ISN'T LIKELY TO BID OR MAY OFFER A VERY LOW BID JUST TO BE PART OF THE PROCESS AND SATISFY THE CHINESE IN ITS HISTORY CHINA HAS GRANTED ONLY THREE CONCESSIONS OF ANY SIGNIFICANCE ONSHORE ALL IN THE EAST AMOCO IS EXPLORING 2050 SQUARE MILES OF LAND IN THE ANHUI PROVINCE EXPLORATION CO OF LOUISIANA IS ABOUT TO SPUD A WELL IN THE BOHAI BASIN NEAR BEIJING AND SANTA FE ENERGY RESOURCES INC IS WORKING WITH PETROCORP LTD A UNIT OF NEW ZEALAND'S FLETCHER CHALLENGE LTD AND WITH NOMECO OIL & GAS CO A UNIT OF MICHIGANBASED CMS CORP TO EXPLORE IN THE DONGTING BASIN NORTHWEST OF SHANGHAI OTHER CONCESSIONS HAVE BEEN MOSTLY OFFSHORE AND PRIMARILY IN OR AROUND THE SOUTH CHINA SEA WHERE WORK HAS BEEN SLOW AND LARGELY DISAPPOINTING PEOPLE HAD BIG HOPES ONCE FOR OFFSHORE BUT NOW THEY ARE MORE REALISTIC AND DON'T EXPECT TO FIND ANY BILLIONBARRELADAY FIELDS SAID MR TING BUT ONSHORE HOLDS MORE PROMISE HE ADDED AND THE IDEA IS THAT IT COULD BE POTENTIALLY SIGNIFICANT 9310290189 931029 CONSORTIUM WINS CONTRACT TO RUN PHILIPPINE LOTTERY BY REGINALD CHUA AND STEPHEN DUTHIE STAFF REPORTERS OF THE WALL STREET JOURNAL MANILA THE PHILIPPINES AWARDED A CONTRACT FOR A NATIONAL ELECTRONIC LOTTERY SYSTEM EXPECTED TO GENERATE ANNUAL REVENUE OF ABOUT 104 BILLION TO A CONSORTIUM THAT INCLUDES MALAYSIA'S BERJAYA GROUP BHD THE CONSORTIUM PHILIPPINE GAMING MANAGEMENT CORP WILL BUILD AND OPERATE FOR EIGHT YEARS A SYSTEM OF 5000 COMPUTERIZED BETTING TERMINALS ACROSS THE COUNTRY FOR 49 OF THE GROSS REVENUE GENERATED THE CONSORTIUM IS 60OWNED BY LOCAL INVESTORS INCLUDING THE POWERFUL LOPEZ BUSINESS CLAN WHICH HAS INTERESTS IN TELECOMMUNICATIONS AND BROADCASTING BERJAYA GROUP WHICH OWNS THE REMAINING EQUITY IS THE FLAGSHIP OF MALAYSIAN ENTREPRENEUR TAN SRI VINCENT TAN CHEE YIOUN A SUBSIDIARY OF THE CONGLOMERATE IS BERJAYA SPORTS TOTO BHD ONE OF MALAYSIA'S THREE NATIONAL LOTTERIES BUT MANILA SAID IT ALSO WAS ALLOWING TWO OTHER BIDDERS FOR THE CONTRACT TO OPERATE ONLINE LOTTERIES AS WELL PROVIDED THEY MATCH PHILIPPINE GAMING'S BID THE TWO COMPETITORS ARE GTECH PHILIPPINES INC WHICH HAS AS A 29 FOREIGN PARTNER GTECH HOLDINGS CORP OF THE US AND TANJONG PUBLIC LTD WHICH INCLUDES THE TANJONG GROUP OF MALAYSIA GLENN BARROGA PHILIPPINE GAMING'S SPOKESMAN SAID HE THOUGHT THE PHILIPPINES COULD ACCOMMODATE THREE COMPETING SYSTEMS BUT ADDED THAT THE CONSORTIUM'S BID WAS BASED ON THE PREMISE THAT THERE WOULD BE ONE OPERATOR HE DECLINED TO SAY WHETHER PHILIPPINE GAMING PLANNED TO REVISE ITS BID SAYING THE GROUP STILL WOULD HAVE TO DISCUSS THE DETAILS OF THE AWARD WITH THE GOVERNMENT AND THE TWO OTHER CONCERNS OFFICIALS OF TANJONG AND GTECH COULDN'T BE REACHED FOR COMMENT GAMING INDUSTRY SOURCES IN MALAYSIA SAY THEY EXPECT TANJONG TO EXAMINE THE SITUATION BEFORE DECIDING WHETHER TO PURSUE ALTERNATIVE PLANS THE LOTTERY IS EXPECTED TO BECOME ONE OF THE COUNTRY'S MAIN REVENUE GENERATORS ONCE MOST OF THE TERMINALS BEGIN OPERATING IN THREE YEARS MANILA HAS SAID IT HOPES TO UNDERCUT THE WIDESPREAD POPULARITY OF AN ILLEGAL GAMBLING GAME CALLED JUETING JUETING BETS ARE ESTIMATED AT BETWEEN 20 BILLION PESOS AND 60 BILLION PESOS A YEAR UNDER THE PROPOSED ELECTRONIC LOTTERY SYSTEM BETS WOULD BE MADE ON TERMINALS THROUGHOUT THE COUNTRY AND TRANSMITTED TO A CENTRAL COMPUTER 9310290187 931029 CARDINAL DISTRIBUTION PURCHASE DUBLIN OHIO CARDINAL DISTRIBUTION INC SAID IT AGREED TO ACQUIRE PRN SERVICES INC OF MADISON HEIGHTS MICH IN A STOCK SWAP TERMS WEREN'T DISCLOSED CARDINAL A WHOLESALE DRUG DISTRIBUTOR SAID PRN WITH ANNUAL SALES OF ABOUT 85 MILLION IS A DISTRIBUTOR OF PHARMACEUTICALS AND MEDICAL SUPPLIES TO ONCOLOGISTS AND ONCOLOGY CLINICS CARDINAL SAID THE ACQUISITION OF PRN WOULD COMPLEMENT ITS CORE DRUG DISTRIBUTION BUSINESS 9310290186 931029 CANADIAN STEEL PRODUCTION OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 276966 METRIC TONS FOR THE WEEK ENDED SATURDAY A 49 INCREASE FROM 264086 TONS IN THE PREVIOUS WEEK BUT A 21 DECLINE FROM 282835 TONS A YEAR EARLIER ACCORDING TO STATISTICS CANADA A GOVERNMENT AGENCY A METRIC TON EQUALS 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 11611359 TONS A 43 INCREASE FROM 11127058 TONS A YEAR EARLIER 9310290185 931029 FLEMING COS JOINT VENTURE OKLAHOMA CITY FLEMING COS SAID IT FORMED A JOINT VENTURE WITH AUSTRALIA'S DAVIDS HOLDINGS TO HELP DEVELOP FOOD DISTRIBUTION CENTERS IN ASIA UNDER THE PLAN DAVIDS WILL OWN 49 OF THE LOCAL JOINT VENTURES CREATED UNDER THE PARTNERSHIP CALLED DAVIDS INVESTMENTS ASIA PTE AND WILL MANAGE THE DISTRIBUTION CENTERS FLEMING SAID AGREEMENTS ALREADY HAVE BEEN REACHED WITH COMPANIES IN SINGAPORE AND MALAYSIA 9310290184 931029 BED BATH & BEYOND SALES RISE SPRINGFIELD NJ BED BATH & BEYOND INC SAID OCTOBER SALES ROSE ALMOST 55 TO 221 MILLION FROM THE YEAREARLIER 143 MILLION WHILE COMPARABLESTORE SALES ROSE 13 IN NATIONAL OVERTHECOUNTER TRADING SHARES OF THE CHAIN FOR DOMESTICS AND HOME FURNISHINGS MERCHANDISE ROSE 2375 OR 77 TO CLOSE AT 33375 A SHARE 9310290183 931029 CARNIVAL TO SELL SOME ASSETS MIAMI CARNIVAL CORP SAID IT AGREED TO SELL 81 OF ITS HOTEL AND CASINO COMPLEX IN NASSAU BAHAMAS TO A GROUP OF GERMAN INVESTORS FOR 65 MILLION IN CASH AND NOTES THE NEW MAJORITY OWNERS SAID THEY PLAN TO REORIENT THE MARKETING OF THE COMPLEX CALLED THE CRYSTAL PALACE TO THE EUROPEAN HOLIDAY MARKET CARNIVAL AN OPERATOR OF CRUISE SHIPS SAID IT WILL RETAIN A 19 SHARE IN THE HOTEL AND CASINO 9310290182 931029 BUSINESS BRIEF XEROX PROFIT ROSE 24 IN 3RD QUARTER SPURRING 575 JUMP IN SHARE PRICE STAMFORD CONN XEROX CORP REPORTED A SURPRISING 24 JUMP IN THIRDQUARTER PROFIT DESPITE WEAK EUROPEAN ECONOMIES CURRENCY PROBLEMS AND COMPETITIVE PRESSURE ON PRICES HELPED BY PROFIT GROWTH IN ITS KEY DOCUMENTPROCESSING BUSINESS XEROX'S NET INCOME WAS 150 MILLION OR 128 A SHARE UP FROM 121 MILLION OR 107 A SHARE REVENUE WAS NEARLY FLAT AT 360 BILLION INVESTORS SIGNALED THEIR APPROVAL IN BIG BOARD TRADING LATE YESTERDAY XEROX SHARES WERE QUOTED AT 76375 UP 575 RESULTS WERE SUPERB MUCH MUCH BETTER THAN EXPECTED SAID ALEX B HENDERSON ANALYST AT PRUDENTIAL SECURITIES HE NOTED THAT THE IMPROVED PROFIT WAS A RESULT OF SALES ACCELERATING FASTER THAN EXPECTED AND A DECLINE IN EXPENSES EARNINGS FROM XEROX'S MAIN DOCUMENTPROCESSING BUSINESS WERE 148 MILLION OR 126 A SHARE COMPARED WITH 119 MILLION OR 105 A SHARE A YEAR AGO A ONETIME US TAX CREDIT OF 23 MILLION OR 22 CENTS A SHARE CONTRIBUTED TO GROWTH IN THE LATEST THIRD QUARTER EQUIPMENT SALES PART OF THE DOCUMENTPROCESSING BUSINESS ROSE AFTER TWO QUARTERS OF DECLINE PARTLY REFLECTING THE BENEFITS OF A REALIGNMENT OF THE COMPANY'S US SALES FORCE AND INTRODUCTION OF NEW BLACK AND WHITE COPIERS XEROX SAID THE COMPANY BEGAN A RESTRUCTURING PLAN IN 1992 AND RESHUFFLED SEVERAL SENIOR POSITIONS EARLIER THIS MONTH XEROX GRADUALLY SEEMS TO BE TIGHTENING THE SCREWS ON THE COST SIDE SAID PETER ENDERLIN OF SMITH BARNEY SHEARSON HE NOTED THAT RESEARCH DEVELOPMENT COSTS AND SELLING GENERAL AND ADMINISTRATIVE EXPENSES FELL A COMBINED 90 MILLION IN THE QUARTER XEROX ALSO CUT ITS WORLDWIDE EMPLOYMENT BY 600 IN THE THIRD QUARTER BRINGING THE TOTAL WORKFORCE REDUCTION TO 1800 SINCE JANUARY HIGH INFLATION AND CURRENCY DEVALUATION IN BRAZIL RESULTED IN ABOUT 50 MILLION MORE IN FOREIGN EXCHANGE LOSSES XEROX SAID THE EXTERNAL ENVIRONMENT CONTINUES TO PRESENT CONSIDERABLE CHALLENGE SAID PAUL A ALLAIRE CHAIRMAN AND CHIEF EXECUTIVE 9310290181 931029 INTERNATIONAL CHRYSLER NEARS SALE OF LAMBORGHINI UNIT TO INDONESIA SUITORS BY RICHARD BORSUK STAFF REPORTER OF THE WALL STREET JOURNAL TURNING AWAY FROM ITS 1987 ACQUISITION CHRYSLER CORP APPEARS CLOSE TO SELLING ITALIAN SPORTSCAR MAKER AUTOMOBILI LAMBORGHINI SPA AND AS IF LAMBORGHINI WEREN'T DETACHED ENOUGH FROM HOME HAVING A PARENT COMPANY IN DETROIT THE NEW SUITORS ARE IN INDONESIA AS WITH SO MANY BUSINESS DEALS IN INDONESIA ONE OF THE PRINCIPAL PLAYERS IS A SON OF PRESIDENT SUHARTO THE PRESIDENT'S YOUNGEST SON HUTOMO MANDALA PUTRA ALSO KNOWN AS TOMMY SUHARTO RACES CARS HIMSELF AND IS HEAD OF INDONESIA'S MOTORRACING ASSOCIATION OFFICIALLY CHRYSLER HAS NOTHING TO SAY ABOUT THE NEGOTIATIONS BUT UNOFFICIALLY CHRYSLER EXECUTIVES CONFIRM THAT TALKS WITH THE INDONESIAN BUSINESSMEN ARE UNDER WAY AND ARE SERIOUS NO DETAILS WERE AVAILABLE ABOUT WHAT PRICE THE INDONESIANS ARE OFFERING TO CHRYSLER WHICH BOUGHT LAMBORGHINI FOR 25 MILLION THE ITALIAN COMPANY ESTABLISHED IN 1963 IS KNOWN FOR THE LAMBORGHINI COUNTACH SPORTS CARS THE LARGEST MARKET FOR THE CARS IS IN THE US BUT THE MARKET IN THE US FOR EXOTIC CARS WHICH COST IN THE REALM OF 150000 PLUNGED IN THE EARLY 1990'S LAMBORGHINI'S PRODUCTION IN SANT'AGATA ITALY NEAR BOLOGNA FELL TO 250 CARS LAST YEAR FROM 570 IN 1991 BUT ANOTHER PIECE OF LAMBORGHINI IS DOUBTLESS MORE INTERESTING TO INDONESIA'S PROMINENT CARRACING PROMOTERS LAMBORGHINI OWNS LAMBORGHINI ENGINEERING WHICH MANUFACTURES AND DESIGNS FORMULA 1 RACECAR ENGINES THE INDONESIAN CAR BUFFS INTERESTED IN THE PURCHASE NO DOUBT HOPE THAT THEIR OWNERSHIP OF A SPORTS CAR WOULD BOOST THE COUNTRY'S CASE FOR HOSTING A HIGHLY SOUGHT FORMULA 1 RACE CHRYSLER BOUGHT LAMBORGHINI AT A TIME WHEN SEVERAL US CAR MAKERS WERE BUYING EUROPEAN SPORTSCAR MAKERS IN THE PAST YEAR THOUGH SOME AMERICAN OWNERS HAVE BEEN SELLING THEM TO CONCENTRATE ON OTHER BUSINESSES AND MARKETS IN AUGUST GENERAL MOTORS CORP SOLD ITS GROUP LOTUS LUXURY SPORTSCAR MAKER IN BRITAIN TO ITALIAN SPECIALTY CAR MAKER BUGATTI INTERNATIONAL THE PRICE WASN'T DISCLOSED 9310290180 931029 POLITICS & POLICY SENATE PASSES A MODIFIED JOBLESSBENEFITS MEASURE WASHINGTON THE SENATE APPROVED AN EMERGENCY EXTENSION OF JOBLESS BENEFITS FOR THE LONGTERM UNEMPLOYED BUT ENACTMENT OF THE MEASURE COULD BE DELAYED FURTHER BY WRANGLING WITH THE HOUSE THE 7620 SENATE VOTE ENDED EXTENDED DEBATE IN WHICH REPUBLICANS SOUGHT TO KILL OR AMEND THE MEASURE BECAUSE OF OBJECTIONS TO ITS 11 BILLION PRICE TAG BUT GOP SENATORS SUCCEEDED IN ATTACHING TWO AMENDMENTS THAT CAST DOUBT ON WHEN CONGRESS WILL GIVE FINAL APPROVAL TO THE EXTENSION WHICH AFFECTS ABOUT 62000 JOBLESS AMERICANS A WEEK THE HOUSE HAS ALREADY APPROVED THE EXTENSION WITHOUT THE PROVISIONS THE EXTENSION WOULD PROVIDE SEVEN OR 13 WEEKS OF ADDITIONAL FEDERAL BENEFITS FOR INDIVIDUALS WHO HAVE EXHAUSTED THEIR BASIC 26 WEEKS OF STATE AID THE DURATION WOULD DEPEND ON THE RATE OF UNEMPLOYMENT IN THE PERSON'S STATE 9310290179 931029 PHYSICIANS HEALTH FORECASTS 34 RISE IN THIRDPERIOD PROFIT TRUMBULL CONN PHYSICIANS HEALTH SERVICES INC EXPECTS TO REPORT A 34 INCREASE IN THIRDQUARTER EARNINGS LARGELY A RESULT OF REDUCTIONS IN EXPENSES MICHAEL E HERBERT PRESIDENT AND CHIEF EXECUTIVE OF THE HEALTHMAINTENANCE ORGANIZATION SAID HE EXPECTS TO REPORT THIRDQUARTER EARNINGS OF ABOUT 39 MILLION OR 42 CENTS TO 43 CENTS A SHARE THAT WOULD BE IN LINE WITH ANALYSTS' ESTIMATES AND WOULD COMPARE WITH YEAREARLIER PROFORMA RESULTS OF 32 CENTS A SHARE OR 29 MILLION DESPITE RISING ENROLLMENT IN THE COMPANY'S HEALTH PLANS ACTUAL EXPENSES PAID TO HOSPITALS DECLINED IMPROVING PROFIT MR HERBERT SAID HE ADDED THAT THE COMPANY DID A BETTER JOB OF REVIEWING THE NEED FOR HOSPITAL ADMISSION AND CONTINUING STAY THE COMPANY WHICH WENT PUBLIC IN JANUARY EXPECTS TO REPORT RESULTS NEXT WEEK THE QUARTER'S PROJECTED 4 IMPROVEMENT IN REVENUE TO 71 MILLION FROM YEAREARLIER 68 MILLION FAILED TO KEEP PACE WITH EARNINGS OR WITH ENROLLMENT WHICH GREW 14 TO 156000 PEOPLE MR HERBERT SAID THAT THIS YEAR PHYSICIANS HEALTH WENT FROM A PLAIN VANILLA HMO TO A PROVIDER OF A MENU OF MANAGEDCARE PRODUCTS THUS INCREASING ENROLLMENT DESPITE THE MOVE TOWARD SELF INSURANCE AMONG SOME CUSTOMERS BUT BECAUSE THE PRODUCTS SUCH AS SEPARATE ADMINISTRATIVE SERVICES PRODUCE A RELATIVELY LOWER REVENUE STREAM REVENUE GROWTH DIDN'T KEEP PACE WITH ENROLLMENT MR HERBERT'S GOAL IS TO ROUGHLY DOUBLE ENROLLMENT IN THE NEXT FEW YEARS WE EXPECT HEALTHY PREMIUM GAINS GOING FORWARD HE SAID GROWTH WILL COME THROUGH GEOGRAPHIC EXPANSION AND ACQUISITIONS MR HERBERT SAID PHYSICIANS HEALTH THE LARGEST HMO IN CONNECTICUT IN TERMS OF ENROLLMENT AND REVENUE IS TRYING TO POSITION ITSELF TO REMAIN THE DOMINANT HMO IN WHAT WE FEEL IS A VERY UNDERPENETRATED MANAGEDCARE MARKETPLACE THE COMPANY ALSO HAS CONTINUED TO PUSH NORTH AND WEST INTO UPSTATE NEW YORK AND IS PURSUING ACQUISITIONS OF OTHER HMOS IN ITS AREA 9310290178 931029 ROBERN TO BECOME WINSTAR NEW YORK ROBERN INDUSTRIES INC SAID IT WILL CHANGE ITS NAME TO WINSTAR COMMUNICATIONS INC TO REFLECT ITS FOCUS IN THE COMMUNICATIONS INDUSTRY PENDING SHAREHOLDER APPROVAL THE OVERTHECOUNTER SYMBOLS FOR ROBERN ROBE ROBEW AND ROBEZ CHANGED TODAY TO WCII FOR COMMON STOCK WCIIW FOR SERIES A WARRANTS AND WCIIZ FOR SERIES B WARRANTS THE COMPANY OFFERS PRIVATE LONGDISTANCE PHONE SERVICES AND SUPPLIES BEAUTY AND SPORTS PRODUCTS TO RETAILERS THROUGHTWO DIVISIONS 9310290177 931029 INTERNATIONAL GERMAN MACHINERY ORDERS DROP FRANKFURT ORDERS FOR GERMAN MACHINERY AND PLANTS DROPPED A REAL 7 IN SEPTEMBER COMPARED WITH A YEAR EARLIER LED BY SHRINKING DOMESTIC DEMAND THE VDMA TRADE ASSOCIATION REPORTED THURSDAY ALTHOUGH THE ASSOCIATION REPORTED A SMALL GAIN IN FOREIGN ORDERS ITS ECONOMIST SAID THE UPTURN WAS RELATED TO SPECIAL FACTORS AND DOESN'T SIGNAL AN ECONOMIC TURNAROUND IN A FURTHER SIGN OF THE DEPTH OF THE COUNTRY'S ONGOING RECESSION VDMA SAID ORDERS IN THE JULY TO SEPTEMBER PERIOD FELL A REAL 9 COMPARED WITH A YEAR EARLIER 9310290176 931029 DIVIDEND NEWS AIRGAS INC AIRGAS INC WILMINGTON DEL DECLARED A 2FOR1 STOCK SPLIT AFTER REPORTING A 60 SURGE IN NET INCOME FOR THE FISCAL SECONDQUARTER THE DISTRIBUTOR OF GASES SAID THE EXTRA SHARES WILL BE ISSUED NOV 24 TO STOCK OF RECORD NOV 9 FOR THE QUARTER ENDED SEPT 30 AIRGAS POSTED NET INCOME OF 46 MILLION OR 29 CENTS A SHARE UP FROM 29 MILLION OR 19 CENTS A SHARE A YEAR EARLIER SALES ROSE 24 TO 1268 MILLION FROM 1025 MILLION AIRGAS SHARES JUMPED 2 TO 4175 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9310290175 931029 INTERNATIONAL BIG VOLVO HOLDER OPPOSES MERGER PLAN WITH RENAULT SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM FOND 9294 WHICH RANKS AMONG AB VOLVO'S 15 LARGEST SHAREHOLDERS SAID THURSDAY IT WILL VOTE AGAINST VOLVO'S PROPOSED MERGER WITH FRENCH AUTO MAKER RENAULT SA AT VOLVO'S NOV 9 EXTRAORDINARY SHAREHOLDERS' MEETING THE DECISION TO OPPOSE THE DEAL FOLLOWS A BOARD MEETING YESTERDAY IN EXPLAINING ITS DECISION THE FUND SAID A MERGER SHOULD BE DELAYED UNTIL RENAULT HAS BEEN PRIVATIZED FOND 9294 REPORTEDLY CONTROLS 25 OF THE VOTES IN AB VOLVO AND IS THE FIRST OF VOLVO'S MAJOR SHAREHOLDERS TO PUBLICLY OPPOSE THE MERGER PLANS THE PLANS HAVE BEEN HARSHLY CRITICIZED MAINLY FOR THE LACK OF A GUARANTEE REGARDING RENAULT'S PRIVATIZATION WHICH HAS LED CRITICS TO CONCLUDE THAT THE DEAL WILL TRANSFORM VOLVO INTO A HOLDING COMPANY CONTROLLED BY THE FRENCH STATE SEVERAL OF THE OTHER INSURANCE COMPANIES AND FUNDS THAT MANAGE LARGE VOLVO STAKES HAVE SCHEDULED BOARD MEETINGS FOR NEXT WEEK TO MAKE A DECISION 9310290174 931029 SLM INTERNATIONAL SETS PURCHASE NEW YORK SLM INTERNATIONAL INC SAID IT AGREED IN PRINCIPLE TO ACQUIRE 1 APPAREL A MAKER OF BASEBALL CAPS AND JACKETS WHICH IS A UNIT OF KPRODUCTS INC TERMS WEREN'T DISCLOSED SLM SAID THE TRANSACTION INCLUDES A MANUFACTURING FACILITY IN MOUNT FOREST ONTARIO ALL RIGHTS TO THE 1 APPAREL NAME COPYRIGHTS AND DESIGNS ACCOUNTS RECEIVABLE AND INVENTORY KPRODUCTS BASED IN IOWA MAKES APPAREL THE DIVISION HAD SALES OF 15 MILLION FOR THE YEAR ENDED JUNE 30 9310290173 931029 TRANSAMERICAN WASTE INDUSTRIES HOUSTON TRANSAMERICAN WASTE INDUSTRIES INC SIGNED A LETTER OF INTENT TO ACQUIRE MIDWESTERN SERVICES INC WHICH SPECIALIZES IN THE TRANSPORTATION PROCESSING AND RECLAMATION OF CRUDEOIL SLUDGES TERMS WEREN'T DISCLOSED TRANSAMERICAN SAID THE ACQUISITION WILL EXPAND ITS MARKET SHARE IN THE OIL FIELD WASTE RECOVERY BUSINESS AND IS EXPECTED TO ADD ABOUT 5 MILLION IN REVENUE OVER THE NEXT YEAR 9310290172 931029 TECHNOLOGY IBM LOWERS PRICES OF GREEN' PS/2 LINE BY AS MUCH AS 20 SOMERS NY INTERNATIONAL BUSINESS MACHINES CORP'S IBM PC CO SAID IT WILL SLASH PRICES UP TO 20 ON ITS RECENTLY INTRODUCED GREEN PS/2 E MODEL COMPUTER AND TWO OF ITS PS/2 90 MODELS IN AN EFFORT TO MOVE SALES THE MODELS MEET NEW FEDERAL GUIDELINES FOR ENERGY EFFICIENCY AND ARE AIMED PRIMARILY AT LARGE CORPORATE ACCOUNTS MAKING LONGTERM COMPUTING INVESTMENTS BACK IN JUNE WHEN THE PS/2 E WAS INTRODUCED IBM OFFICIALS HOPED THAT THE MODEL'S CONSERVATION FEATURES AND SPACESAVING FLEXIBILITY WOULD APPEAL TO LARGE ENTITIES WHICH NEED TO CONTINUOUSLY RUN THE MACHINES SUCH AS HOSPITALS AND LIBRARIES BUT THE CONSERVATION SELLING POINT HASN'T WORKED WELL SO FAR ACCORDING TO IBM A SPOKESMAN SAID THERE HASN'T BEEN A PRICE REDUCTION BY COMPETITORS WE JUST WANT MORE PEOPLE TO EXPERIENCE THIS NATURAL AND GREEN COMPUTING IDEA SAID A SPOKESMAN IT'S A NEW THING THAT'S AHEAD OF ITS TIME 9310290171 931029 SUNBEAMOSTER CO ACQUISITION SCHAUMBURG ILL SUNBEAMOSTER CO ACQUIRED NEWELL CO'S COUNSELOR BORG SCALE CO TERMS WEREN'T DISCLOSED SUNBEAM SAID COUNSELOR BORG WILL OPERATE AS A UNIT OF SUNBEAM'S HOUSEHOLD PRODUCTS GROUP 9310290170 931029 THURSDAY'S MARKETS DOW INDUSTRIALS HIT RECORD ON UPBEAT ECONOMIC NEWS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE SURGED TO A RECORD ON UPBEAT ECONOMIC NEWS BOND PRICES ROSE AND THE DOLLAR FELL THE INDUSTRIAL AVERAGE GAINED 2320 POINTS TO 368786 STANDARD & POOR'S 500STOCK INDEX ROSE 312 TO 46773 AND THE NASDAQ COMPOSITE INDEX WAS UP 161 TO 77349 THE INDUSTRIALS SPURTED HIGHER IN MORNING TRADING PASSING ITS RECORD OF 367361 SET ON MONDAY AND TEMPORARILY BREAKING THROUGH THE 3700 LEVEL BUT AFTER CLIMBING MORE THAN 44 POINTS THE INDUSTRIAL AVERAGE PULLED BACK DURING THE AFTERNOON THE RALLY ERUPTED AFTER THE COMMERCE DEPARTMENT REPORTED THAT THIRDQUARTER GROSS DOMESTIC PRODUCT ROSE 28 COMPARED WITH 23 IN THE SECOND QUARTER THE INCREASE EXCEEDED ANALYSTS' EXPECTATIONS OF A 27 GAIN NEARLY HALF OF THE DOW INDUSTRIAL'S GAIN WAS ATTRIBUTABLE TO EASTMAN KODAK WHICH SOARED IN TRADING ON THE NEW YORK STOCK EXCHANGE ON NEWS THAT MOTOROLA CHAIRMAN GEORGE FISHER WILL BECOME KODAK'S CHIEF EXECUTIVE OFFICER A STRONG EARNINGS REPORT FROM UAL PARENT OF UNITED AIRTOCKS HIGHER AND PUSHED THE DOW JONES TRANSPORTATION AVERAGE UP 2928 POINTS TO 172793 ITS THIRD STRAIGHT RECORD BOND PRICES INITIALLY SANK ON THE GOOD ECONOMIC NEWS BUT RECOVERED AFTER TRADERS REALIZED THAT THE GDP REPORT ALSO CONTAINED UPBEAT DATA ON INFLATION RICHARD B BERNER CHIEF ECONOMIST AT MELLON BANK PITTSBURGH SAID THE DATA REFLECTED AN ECONOMIC CLIMATE THAT IS POSITIVE FOR BOTH THE STOCK AND BOND MARKETS PEOPLE ARE BEGINNING TO BELIEVE WE CAN SUSTAIN ECONOMIC GROWTH RATES IN THIS VICINITY WITHOUT A PICKUP IN INFLATION MR BERNER SAID JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ & CO SAID HE WAS A LITTLE CONCERNED BY THE SHARPNESS OF THE STOCK MARKET'S ADVANCE HE WARNED THAT A SHARP CLIMB CAN EASILY BE FOLLOWED BY A DOWNDRAFT IF THE NEXT BATCH OF ECONOMIC NUMBERS ISN'T AS POSITIVE THE MARKET REACTION IS A LITTLE STARTLING HE SAID NOTING THAT THERE HAVE BEEN AMPLE SIGNS EARLIER OF IMPROVED GROWTH BUT THE MARKET TENDS TO RESPOND TO HEADLINES NONETHELESS HE BELIEVES THE INDUSTRIAL AVERAGE'S SPURT IS THE FIRST LEG OF AN ADVANCE TO THE 3800 LEVEL BUT HE CAUTIONS NEXT WEEK IS CRITICAL BECAUSE ECONOMIC NEWS WILL BE RELEASED EVERY DAY WITH EMPLOYMENT DATA COMING OUT ON FRIDAY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 012 TO 11292 IN MAJOR MARKET ACTION STOCK PRICES RALLIED VOLUME TOTALED 2971 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1164 ISSUES ROSE AND 869 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED ABOUT 3/4 POINT OR ABOUT 750 FOR EACH 1000 FACE AMOUNT TO YIELD 594 THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16749 MARKS AND 10816 YEN COMPARED WITH 16795 MARKS AND 10872 YEN WEDNESDAY 9310290169 931029 CREDENCE SELLS SHARES FREMONT CALIF CREDENCE SYSTEMS CORP SAID IT SOLD 25 MILLION SHARES AT AN OFFERING PRICE OF 12 A SHARE IN AN INITIAL PUBLIC OFFERING AFTER THE SALE THE COMPANY HAD 104 MILLION SHARES OUTSTANDING GIVING IT A MARKET VALUE OF ABOUT 125 MILLION BASED ON THE OFFERING PRICE THE COMPANY'S SHARES WERE UNCHANGED AT 1175 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE MAKER OF TEST EQUIPMENT FOR SEMICONDUCTOR PRODUCTION SAID IT WAS THE SELLER OF ALL 25 MILLION SHARES IN THE OFFERING THE LEAD UNDERWRITER OF WHICH WAS SMITH BARNEY SHEARSON INC CREDENCE SAID IT WILL USE THE NET PROCEEDS TO REPAY DEBT AND FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES 9310290168 931029 MONEYFUND ASSETS FELL BY 274 BILLION DURING LATEST WEEK WASHINGTON MONEYMARKET MUTUAL FUND ASSETS FELL 274 BILLION TO 58487 BILLION FROM 58761 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 645 RETAIL MONEYMARKET MUTUAL FUNDS ROSE BY 9526 MILLION TO 38954 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 406 TAXABLE MONEYMARKET FUNDS ROSE BY 8425 MILLION TO 30533 BILLION ASSETS OF 239 RETAIL TAXEXEMPT FUNDS ROSE BY 1101 MILLION TO 8421 BILLION ASSETS OF THE 274 INSTITUTIONAL MONEYMARKET FUNDS DECREASED BY 369 BILLION TO 19534 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 221 TAXABLE MONEYMARKET FUNDS FELL BY 338 BILLION TO 1739 BILLION ASSETS OF 53 TAXEXEMPT FUNDS FELL BY 3085 MILLION TO 2144 BILLION 9310290167 931029 NESTLE TO BUY STAKE IN ICE CREAM VENTURE MANILA PHILIPPINES NESTLE SA OF SWITZERLAND IS TO ACQUIRE 50 OF MAGNOLIA CORP IN A NEW VENTURE WITH THE PHILIPPINES' LARGEST ICE CREAM MAKER MAGNOLIA ANNOUNCED NESTLE'S INVESTMENTS IN THE NEW MAGNOLIA NESTLE CORP ARE WORTH 14 BILLION PESOS 484 MILLION AND WILL RESULT IN A CAPITAL GAIN OF 700 MILLION PESOS 242 MILLION FOR SAN MIGUEL CORP MAGNOLIA'S PARENT COMPANY AND THE LARGEST FILIPINO FOOD AND BEVERAGE CONGLOMERATE SAN MIGUEL CHAIRMAN ANDRES SORIANO III SAID NESTLE'S INVESTMENT STRENGTHENS HIS COMPANY'S FROZEN AND CHILLED FOOD BUSINESS IT ALSO CONSTITUTES A VOTE OF CONFIDENCE IN THE PHILIPPINE ECONOMY ON THE PART OF THE WORLD'S LEADING FOOD COMPANIES AND THUS SENDS STRONG SIGNALS TO OTHER FOREIGN INVESTORS MR SORIANO SAID 9310290166 931029 ENTERPRISE GOVERNMENT WATCH CLINTON HEALTH PLAN COULD GIVE IRS BROAD NEW POWER BY EUGENE CARLSON AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S HEALTHREFORM BILL COULD GIVE THE INTERNAL REVENUE SERVICE BROAD NEW AUTHORITY TO DETERMINE WHO IS AN INDEPENDENT CONTRACTOR TREASURY OFFICIALS SAY THEIR GOAL IS MERELY TO AVERT A POSSIBLE RUSH BY EMPLOYERS TO REDUCE THE SIZE OF THEIR WORK FORCES BY RECLASSIFYING EMPLOYEES AS INDEPENDENT CONTRACTORS UNDER THE CLINTON HEALTH PLAN ALL EMPLOYERS WOULD BE REQUIRED TO HELP PAY FOR THEIR EMPLOYEES' MEDICAL COVERAGE ALTHOUGH SMALL FIRMS WOULD BE ENTITLED TO GOVERNMENT SUBSIDIES BY RECLASSIFYING EMPLOYEES AS INDEPENDENT CONTRACTORS COMPANIES COULD REDUCE THEIR INSURANCE COSTS BUT CRITICS FEAR THE INDEPENDENTCONTRACTOR PROVISION COULD HAVE IMPLICATIONS FAR BEYOND THE HEALTH PLAN THEY WORRY THAT THE IRS WILL USE IT TO STEP UP SCRUTINY OF EMPLOYERS THAT AVOID PAYING UNEMPLOYMENT AND SOCIAL SECURITY TAXES BY CALLING THEIR WORKERS INDEPENDENT CONTRACTORS AT ISSUE IS A SECTION OF THE PRESIDENT'S HEALTH PLAN THAT WOULD SIGNIFICANTLY REVISE THE SOCALLED SAFE HARBOR PROVISIONS OF SECTION 530 OF THE REVENUE ACT OF 1978 AMONG OTHER THINGS THESE PROVISIONS ALLOW WORKERS TO BE TREATED AS INDEPENDENT CONTRACTORS RATHER THAN EMPLOYEES IF IT IS COMMON PRACTICE IN THEIR INDUSTRY TO DO SO JEFFREY COOPER A PHILADELPHIA TAX LAWYER SAID THE CLINTON PROPOSAL WOULD GIVE ENORMOUS DEFERENCE TO THE IRS TO DEFINE WHO IS AND WHO ISN'T AN INDEPENDENT CONTRACTOR UNDER THE CURRENT RULES THE IRS DOESN'T HAVE SUCH AUTHORITY MR COOPER SAID THE PROPOSED CHANGE WOULD BE A SIGNIFICANT IMPAIRMENT TO BUSINESS OWNERS TO APPROPRIATELY STAFF THEIR COMPANIES IN DIFFICULT ECONOMIC TIMES DONALD ALEXANDER A FORMER IRS COMMISSIONER SAID HE BELIEVED THE PROPOSAL MAY BE AN EFFORT TO SOLVE A PERCEIVED PROBLEM ABOUT THE EMPLOYMENT STATUS OF WORKERS THROUGH THE HEALTH BILL BUT LES SAMUELS ASSISTANT TREASURY SECRETARY FOR TAX POLICY SAID THE HEALTH PROPOSAL ISN'T A BACKDOOR APPROACH TO FORCE TAXPAYERS TO SWITCH FROM CONTRACTOR TO EMPLOYEE STATUS IT IS SIMPLY DESIGNED TO PREVENT ABUSE AND GAMING OF THE SYSTEM HE SAID ADMINISTRATION OFFICIALS NOTED THAT THEY PROJECT THE OVERHAUL OF SECTION 530 WOULD RAISE LESS THAN 100 MILLION A YEAR A SIGN THAT IT MAY NOT BE AS PUNITIVE AS CRITICS SUGGEST ALL OF THAT MONEY OFFICIALS SAID WOULD COME FROM STIFFER PENALTIES AGAINST EMPLOYERS WHO DON'T REPORT PAYMENTS MADE TO INDEPENDENT CONTRACTORS TREASURY OFFICIALS ALSO NOTED THAT UNDER AN EARLIER DRAFT OF THE HEALTH PLAN CONTRACTORS WHO RECEIVE 80 OF THEIR INCOME FROM ONE FIRM AUTOMATICALLY WOULD HAVE BEEN CONSIDERED EMPLOYEES OF THAT COMPANY THE FINAL LEGISLATION IS A MUCH MORE MODERATE PROPOSAL MR SAMUELS SAID NONETHELESS MR ALEXANDER BELIEVES THAT MANY ENTREPRENEURS WHO VALUE THEIR INDEPENDENTCONTRACTOR STATUS ARE GOING TO FRET ABOUT THE LANGUAGE IN THE LEGISLATION IT'S GOING TO ATTRACT NEW OPPOSITION TO THE ENTIRE HEALTH BILL HE PREDICTED SEPARATELY PRESIDENT CLINTON AND HILLARY RODHAM CLINTON TRAVELED TO JOHNS HOPKINS UNIVERSITY IN BALTIMORE TO STUMP FOR THEIR HEALTH PLAN THE DEBATE IS NO LONGER OVER WHETHER WE WILL DO SOMETHING BUT WHAT WE WILL DO AND HOW SOON WE CAN GET IT DONE MRS CLINTON DECLARED THE US TURNS SOUR ON A SWEET PENSION PLAN FOR BUSINESS OWNERS LESS THAN TWO MONTHS AGO THE INTERNAL REVENUE SERVICE ISSUED FINAL REGULATIONS GOVERNING SOCALLED AGEWEIGHTED PENSION PLANS WHICH HAVE SOARED IN POPULARITY LATELY THESE ENABLE MANY BUSINESS OWNERS TO SET ASIDE MOST OF THEIR PENSION CONTRIBUTIONS FOR THEMSELVES BUT NOW THE CLINTON ADMINISTRATION IS MOVING TO SHARPLY RESTRICT USE OF THE DEVICES AND THAT HAS THE FIRMS THAT MARKET THEM AND THE BUSINESSES THAT USE THEM MOST OF WHICH ARE SMALL FIRMS IN A DITHER AGEWEIGHTED PLANS ARE DEFINEDCONTRIBUTION PLANS THAT TAKE INTO ACCOUNT THE AGE AS WELL AS THE SALARIES OF EMPLOYEES A COMPANY'S CONTRIBUTION TO A RETIREMENT ACCOUNT CAN BE AS MUCH AS 25 FOR AN OLDER EMPLOYEE AND AS LITTLE AS 3 FOR A YOUNG WORKER THE SAME FORMULA APPLIES TO EVERYBODY AND THUS GIVES AN EQUITABLE APPEARANCE TO THE PLANS BUT CRITICS SAY THE PLANS ARE REALLY TAX SHELTERS THAT LET BUSINESS OWNERS IN THEIR 50S OR 60S FUNNEL MOST OF THE MONEY TO THEIR ACCOUNTS LEAVING LOWPAID WORKERS WITH A PITTANCE CHECK OUT THE BRANDNEW DESIGN LAFAYETTE LIFE INSURANCE CO LAFAYETTE IND URGES PENSIONPLAN MARKETERS IN A MAGAZINE AD RECENT IRS REGULATIONS ALLOW YOU TO PRESENT THIS REVOLUTIONARY BREAKTHROUGH THE AD CONTAINS A CHART SHOWING HOW A 60YEAROLD EXECUTIVE EARNING 120000 A YEAR CAN SOCK AWAY 30000 UNDER AN AGEWEIGHTED PLAN COMPARED WITH 18000 UNDER A TRADITIONAL PROFITSHARING PLAN THAT GIVES ALL EMPLOYEES 15 OF THEIR PAY THE SAME CHART SHOWS THAT A 34YEAROLD WORKER MAKING 31000 WOULD GET JUST 930 COMPARED WITH 4650 UNDER A TRADITIONAL PLAN SUCH FIGURES DISTRESS THE CLINTON ADMINISTRATION THE STRUCTURES OF SOME OF THE PLANS NOW BEING MARKETED ARE UNFAIRLY REWARDING BUSINESS OWNERS ONE POLICY MAKER SAYS THE IRS REGULATIONS BLESSED A FORMULA THAT PREVIOUSLY FAILED THE SMELL TEST' HE ADDS AS A RESULT THE ADMINISTRATION IS PROPOSING STRICT RESTRICTIONS ON AGEWEIGHTED AND SIMILAR PLANS IN A PENSIONREFORM BILL THAT IT SENT TO CONGRESS THIS WEEK AMONG OTHER THINGS THE MEASURE WRITTEN BY A TASK FORCE THAT INCLUDES OFFICIALS FROM THE TREASURY AND LABOR DEPARTMENTS WOULD BAN THE CREATION OF MOST NEW AGEWEIGHTED PLANS IT WOULD PUT A STOP TO THE BAD APPLES THE OFFICIAL SAYS BUT THE ADMINISTRATION'S BACKTRACKING ISN'T FAIR ADVOCATES OF AGEWEIGHTED PLANS RETORT THEY SAY SUCH PLANS ENABLE GRAYING ENTREPRENEURS TO REWARD THEMSELVES FOR A LIFE OF TOIL AGEWEIGHTED GAVE US A RAY OF HOPE SAYS DOMINIC FIRMANI OWNER AND PRESIDENT OF FIRMANI PENSION SERVICES HADDONFIELD NJ IT'S FRUSTRATING TO WORK WITHIN THE RULES AND THEN HAVE TO GO BACK TO THE DRAWING BOARD TRUITT SMITH A VICE PRESIDENT AT LAFAYETTE LIFE SAYS THE ADMINISTRATION'S INTENDED CRACKDOWN IS A KNEEJERK REACTION OF SOMEBODY LOOKING AT A QUICK EXAMPLE HE SAYS HIS FIRM HAS WRITTEN CLOSE TO 60 AGEWEIGHTED PLANS IN THE PAST YEAR AND HAS HUNDREDS MORE PROPOSALS OUT A BUSINESS OWNER ISN'T REQUIRED TO HAVE A PLAN MR SMITH SAYS IF THIS IS KILLED HE'LL FIND SOME OTHER WAY TO SAVE HIS MONEY AN ENTREPRENEUR HAS CLIPPED THE NAILS OF NEW YORK'S TAX HOUNDS SHARON BURKERT APPLIED ARTIFICIAL NAILS TO HER CLIENTS'S FINGERS AT HER SHARON'S NAIL FASHIONS SALON IN UTICA NY AND CARED FOR THEM IN FOLLOWUP VISITS SHE THOUGHT SHE WAS PERFORMING MANICURING SERVICES WHICH AREN'T TAXABLE THE STATE THOUGHT OTHERWISE TAX AUTHORITIES SAID SHE WAS ENGAGING IN THE INSTALLATION REPAIR AND MAINTENANCE OF TANGIBLE PERSONAL PROPERTY ACTIVITIES THAT ARE SUBJECT TO SALES AND USE TAXES IT ORDERED HER TO PAY BACK TAXES SHE APPEALED NOW NEARLY A DECADE LATER A JUDGE HAS OVERTURNED THE ASSESSMENT THE STATE'S APPROACH WAS MISGUIDED AND ITS REASONING PREPOSTEROUS THE JUDGE SAID UNDER THE TAX DIVISION'S THEORY THE INSTALLATION OF NAIL POLISH WOULD ALSO CONSTITUTE THE INSTALLATION OF TANGIBLE PERSONAL PROPERTY ADMINISTRATIVE LAW JUDGE JEAN CORIGLIANO SAID IN HER RULING SHE SAID SHE WAS UNSWAYED BY THE DIVISION'S INVOCATION OF A PRECEDENT A STATE TAX COMMISSION'S DETERMINATION IN 1977 THAT FUSING A HAIRPIECE WITH NATURAL HAIR DOES CONSTITUTE THE INSTALLATION OF TANGIBLE PERSONAL PROPERTY THE PRESIDENT OF THE NEW YORK STATE NAIL TECHNICIANS ORGANIZATION SAID IT TOOK 27 TRIES TO GET THROUGH TO AN OFFICIAL ON THE NEW YORK SALES TAX DEPARTMENT'S TOLLFREE TELEPHONE NUMBER TO ASK QUESTIONS ON BEHALF OF MS BURKERT MS BURKERT WHO NOW RUNS A SMALLER NAIL SALON SAYS SHE IS CAUTIOUSLY RELIEVED AT THE OUTCOME OF HER CASE SOMETIMES I THINK GOVERNMENT GETS OVERZEALOUS SHE ADDS BRENT BOWERS IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9310290165 931029 MOLSON OFFERS OUTLETS A PURCHASING PROGRAM IF THEY SELL ITS BEER TORONTO MOLSON BREWERIES HOPING TO SELL MORE BEER IS OFFERING COMPUTERS WIDESCREEN TELEVISIONS AND BUSINESS INSURANCE AT CUTRATE PRICES TO BARS AND RESTAURANTS THAT STOCK ITS SUDS MOLSON WHICH CALLS ITS PROGRAM CUSTOMER CARE SAYS IT'S THE FIRST OF ITS KIND OFFERED BY ANY BREWER IN NORTH AMERICA THE COMPANY HAS BROUGHT ON BOARD IBM CANADA LTD AND TOSHIBA CANADA LTD AS WELL AS INSURANCE BROKER MARSH & MCLENNAN TO SUPPLY THE PRODUCTS THE BREWERY WHICH SELLS ABOUT ONEFOURTH OF ITS BEER THROUGH CANADA'S 40000 BARS AND RESTAURANTS IS OWNED BY MOLSON COS OF TORONTO FOSTER'S BREWING GROUP LTD OF AUSTRALIA AND MILLER BREWING CO A UNIT OF PHILIP MORRIS COS THE ARRANGEMENT WORKS LIKE THIS OWNERS OF RESTAURANT AND BARS IN CANADA CAN JOIN FREE OF CHARGE A PURCHASING CLUB SPONSORED BY MOLSON THE OWNERS HAVE NO FURTHER OBLIGATIONS TO MOLSON ALTHOUGH THE BREWER DOES HOPE THAT BARTENDERS MIGHT THINK OF US DIFFERENTLY AND OFFER CUSTOMERS A MOLSON INSTEAD OF A RIVAL BEER EQUIPMENT PURCHASED THROUGH MOLSON WILL BE PRICED SIGNIFICANTLY BETTER THAN IF SMALL BUSINESS OWNERS WERE TRYING TO GO OUT AND GET IT ON THEIR OWN A SPOKESWOMAN SAID THE PROVIDERS OF THE EQUIPMENT APPARENTLY HOPE THAT ANY INCREASE IN SALES WILL MAKE UP FOR THE LOWER SELLING COST SHE SAID MOLSON INTRODUCED THE PROGRAM IN WESTERN CANADA LAST WEEK IT WILL BE EXTENDED TO THE REST OF THE COUNTRY IN COMING WEEKS 9310290164 931029 HEARD ON THE STREET IMC FERTILIZER SHARES ATTRACT SOME ANALYSTS AS CONDITIONS IMPROVE BUT PROBLEMS REMAIN BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL AFTER A SICKENING SLIDE IN WHICH IT LOST 64 OF ITS VALUE IMC FERTILIZER GROUP STOCK IS STAGING A COMEBACK ALL OF A SUDDEN LOTS OF THINGS ARE GOING RIGHT FOR FERTILIZER PRODUCERS AND PEOPLE WHO FOLLOW THE INDUSTRY CLOSELY SAY IMC'S RECOVERY SHOULD ROLL ON LONG ENOUGH FOR INVESTORS TO REGISTER SOME SOLID PROFITS IMC BASED IN NORTHBROOK ILL IS THE COUNTRY'S LARGEST MAKER OF PHOSPHATE FERTILIZER THROUGH MOST OF 1992 AND 1993 WORLDWIDE SUPPLY EXCEEDED DEMAND FERTILIZER PRICES FELL TO 20YEAR LOWS AND IMC POSTED LOSSES THE STOCK HIT A HIGH OF 68 EARLY LAST YEAR AND THEN GOT PUMMELED FOR THE NEXT YEAR AND A HALF FALLING AS LOW AS 24 3/8 IN JUNE BUT NOW THE SUPPLYDEMAND BALANCE HAS SHIFTED IN IMC'S FAVOR CHINA THE WORLD'S BIGGEST IMPORTER OF PHOSPHATE FERTILIZER RESUMED ITS PRIOR PURCHASING PACE AFTER A YEARLONG CUTBACK INDIA THE NEXTLARGEST IMPORTER ALSO STEPPED UP PURCHASES IMC'S STOCK HAS COME ALIVE CLOSING YESTERDAY AT 35 1/8 OFF 1/4 IT'S VERY IMPORTANT FOR CHINA AND INDIA TO COME BACK IN SAYS WALTER KASS PRESIDENT OF CURATORS CAPITAL MANAGEMENT IN NEW YORK ABOUT HALF OF US PHOSPHATE FERTILIZER IS EXPORTED AND THOSE TWO COUNTRIES ACCOUNT FOR ABOUT TWOTHIRDS OF THE EXPORTS DEMAND IS LOOKING UP IN THE US TOO MIDWESTERN CORN FARMERS WILL NEED EXTRA FERTILIZER TO REPLACE NUTRIENTS WASHED AWAY IN THIS YEAR'S FLOODS AND HEAVY RAINS THEY ALSO WILL BE PLANTING MORE ACREAGE TO MAKE UP FOR 1993'S SUBPAR HARVEST MEANWHILE CAPACITY TO PRODUCE PHOSPHATE FERTILIZER HAS BEEN SHRINKING A LOT OF THE MARGINAL PRODUCERS WERE PRICED OUT OF THE MARKET AND HAVE GONE OUT OF BUSINESS SAYS MR KASS PLANTS WERE SHUT PERMANENTLY IN EUROPE MEXICO AND THE PHILIPPINES ANALYSTS SAY IN THE US IMC IS OPERATING AT ONLY ABOUT 70 OF CAPACITY RUSSIA HAS BEEN A WILD CARD FOR FERTILIZER SUPPLY HUNGRY FOR FOREIGN CURRENCY IT EXPORTED HEAVILY LAST YEAR BUT LATELY IT HAS CUT ITS EXPORTS AND IS ENCOURAGING ITS FARMERS TO USE MORE FERTILIZER AT HOME PUT ALL THESE FACTORS TOGETHER AND THE SUPPLYDEMAND PICTURE HAS TIGHTENED UP VERY QUICKLY SAYS ANALYST GEORGE J KRUG OF OPPENHEIMER & CO THE PENDULUM GOT WAY OVERDONE ONE WAY AND IT'S COMING BACK WITH A VENGEANCE HE THINKS FERTILIZER PRODUCERS ARE IN THE EARLY STAGES OF A COMEBACK THAT COULD DRIVE IMC'S STOCK PRICE EASILY TO 50 AND PERHAPS CLOSE TO 100 WITHIN TWO YEARS FEW OTHER ANALYSTS ARE THAT OPTIMISTIC BUT MANY FIND IMC ATTRACTIVE TED SEMEGRAN OF LEHMAN BROTHERS NOTES THAT PRICES HAVE BEEN FALLING FOR SULFUR A RAW MATERIAL FOR PHOSPHATE FERTILIZER SO PROFITS CAN RISE EVEN FASTER THAN THE PRICE OF THE FERTILIZER WHICH HAS SHOT UP TO 120 A TON IN THE CASH MARKET FROM 100 LAST SUMMER IN THE FUTURES MARKET THE PRICE IS ABOUT 130 A TON HE TAGS IMC A BUY LIKELY TO RISE 10 TO 25 OVER THE NEXT YEAR FERTILIZER STOCKS ALREADY HAVE MOVED HIGHER BUT I THINK THEY HAVE MORE TO GO TO THE UPSIDE SAYS CHRISTOPHER WILLIS OF WERTHEIM SCHRODER HE THINKS IMC STOCK COULD RISE INTO THE LOW 40S BY THIS SPRING AND INTO THE UPPER 40S BY THE END OF NEXT YEAR IF CURRENT TRENDS CONTINUE HENRY VAN DER EB MANAGER OF MATHERS FUND IN BANNOCKBURN ILL BOUGHT 500000 SHARES OF IMC EARLIER THIS YEAR BUT SLICED THE HOLDING BY ABOUT A THIRD RECENTLY BECAUSE IMC'S TURNAROUND IS HAPPENING MORE SLOWLY THAN HE HAD HOPED I DON'T THINK I'D BUY IT AT 35 HE SAYS BUT HE STILL FIGURES THAT IMC SHOULD HIT 40 OR 45 IN THE NEXT 12 MONTHS BASED ON TODAY'S FERTILIZER PRICES MR VAN DER EB SAYS THE STOCK IS PRETTY FULLY PRICED HOWEVER HE GUESSES THAT FERTILIZER PRICES WILL KEEP RISING AND REACH 160 OR 170 A TON THE BULLS ARE COUNTING ON THAT THIS MONTH IMC'S PRESIDENT AND CHIEF EXECUTIVE OFFICER WENDELL F BUECHE WARNED THAT ALTHOUGH THE RECENT IMPROVEMENT IN THE MARKET WAS GRATIFYING PRICES WERE CLIMBING FROM 20YEAR LOWS AND NEEDED TO RISE SUBSTANTIALLY FROM SUMMER'S LEVELS FOR THE COMPANY TO RETURN TO PROFITABILITY ONE WEAKNESS AT IMC IS ITS DEBT LOAD DEBT HAD CLIMBED TO MORE THAN TWO THIRDS OF TOTAL CAPITAL THIS SUMMER THREE WEEKS AGO IMC ISSUED THREE MILLION NEW SHARES TO REDUCE THE DEBT IT'S STILL PRETTY LEVERAGED BUT I THINK IT'S MANAGEABLE FOR THEM NOW SAYS DICK HERDER AN ANALYST FOR THE PIONEER MUTUAL FUNDS IN BOSTON EVEN MONEY MANAGERS WHO LIKE IMC DON'T THINK INVESTORS SHOULD STASH IT IN A SAFE DEPOSIT BOX AS A LONGTERM HOLDING WEATHER AND INTERNATIONAL POLITICS CAN MAKE FERTILIZER STOCKS HEAVE UP AND DOWN IT'S HARD TO PREDICT CONDITIONS IN THE CRUCIAL EXPORT MARKET MORE THAN THREE TO SIX MONTHS IN ADVANCE SAYS WERTHEIM'S MR WILLIS PREDICTING WHAT HAPPENS IN INDIA CHINA AND RUSSIA IS NOT AN EASY TASK NEVER HAS BEEN AND NEVER WILL BE YEAR ENDED JUNE 30 1993 FIRST QUARTER SEPT 30 1993 9310290163 931029 CONGRESSMAN WHO COOKED UP TAX BREAK FOR RESTAURANTS MAY GET TASTE HIMSELF BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON REP DON SUNDQUIST THE TENNESSEE REPUBLICAN WHO HELPED THE RESTAURANT INDUSTRY CLINCH A TAX BREAK THIS WEEK HIMSELF HAS A STAKE IN A CHAIN OF RESTAURANTS REP SUNDQUIST'S WIFE MARTHA IS A LIMITED PARTNER IN RED HOT & BLUE CORP A COMPANY BASED IN ARLINGTON VA THAT HAS 14 BARBECUE FRANCHISES IN SIX STATES AND IS BEST KNOWN FOR HAVING THE LATE REPUBLICAN NATIONAL CHAIRMAN LEE ATWATER AS A FOUNDER THE SUNDQUISTS TOGETHER OWN STOCK IN THE ANNAPOLIS MD FRANCHISE IN ADDITION TWO OF THE CORPORATION'S THREE GENERAL PARTNERS ARE FORMER SUNDQUIST AIDES THE SIXTERM CONGRESSMAN WHO IS FAVORED TO GET THE GOP NOMINATION FOR GOVERNOR IN HIS STATE THOUGH HE HASN'T ANNOUNCED HIS CANDIDACY YESTERDAY DEFENDED HIS SUCCESSFUL EFFORT ON BEHALF OF THE RESTAURANT INDUSTRY AND DENIED THAT HE HAD A CONFLICT OF INTEREST THOUGH REP SUNDQUIST TAKES SOME CREDIT FOR FOUNDING THE ORIGINAL RED HOT & BLUE IN ARLINGTON VA SEVERAL YEARS AGO IT WAS BORN HE RECALLS OF HIS AND HIS STAFF'S LAMENT THAT THERE WASN'T ANY BARBECUE RESTAURANT WORTH ANYTHING IN THE WASHINGTON AREA HE SAYS HE DECLINED TO BECOME A LIMITED PARTNER AFTER CONSULTING THE HOUSE ETHICS COMMITTEE THE ETHICS COMMITTEE SAID YOU CAN BUT IT'S QUESTIONABLE' HE RECALLED I DID NOT BECOME A GENERAL PARTNER BECAUSE I DIDN'T WANT TO COME CLOSE TO THE LINE ON THE ETHICS QUESTION INSTEAD HE SAID HIS WIFE INVESTED 10000 OF THE MORE THAN 400000 INITIAL INVESTMENT LATER HOWEVER THE COUPLE JOINTLY BOUGHT STOCK IN THE ANNAPOLIS RESTAURANT REP SUNDQUIST SAID THE FAMILY EARNED ABOUT 7600 ON HIS WIFE'S INVESTMENT IN 1992 THE RESTAURANT BREAK AT ISSUE PART OF THE BUDGET LAW PASSED IN AUGUST GIVES RESTAURANTS A TAX CREDIT FOR PAYROLL TAXES THEY PAY ON EMPLOYEES' TIP INCOME DURING A CLOSEDDOOR SESSION WEDNESDAY AT WHICH THE HOUSE WAYS AND MEANS COMMITTEE CONSIDERED A BILL TO CORRECT MISTAKES IN THE MASSIVE TAX LAW REP SUNDQUIST PERSUADED MEMBERS TO DROP LANGUAGE THAT SAID THE CREDIT APPLIES ONLY TOWARD TIPS EARNED STARTING IN 1994 AS THE LAW NOW READS RESTAURANTS CAN ARGUE THAT THE CREDIT TAKES EFFECT FOR THIS YEAR'S PAYROLL TAXES ON TIPS THAT WAS NOT CONGRESS'S INTENT ARGUED HANK GUTMAN CHIEF OF STAFF OF THE JOINT TAX COMMITTEE ACCORDING TO PARTICIPANTS IN THE MEETING HE ALSO SAID A MAJOR WINDFALL COULD RESULT FOR RESTAURANTS THAT SETTLE TAX DISPUTES NEXT YEAR WITH THE INTERNAL REVENUE SERVICE THEY COULD CLAIM A CREDIT FOR ANY SETTLEMENT PAID EVEN IF THE PAYROLL TAXES IN QUESTION COVER TIPS EARNED SEVERAL YEARS EARLIER REP GERALD KLECZKA D WIS OBJECTED THAT THE COMMITTEE SHOULDN'T DO FAVORS FOR SPECIAL INTERESTS LAWMAKERS SAY HE WAS UNAVAILABLE FOR COMMENT AND MR GUTMAN DECLINED TO COMMENT REP SUNDQUIST INSISTED THAT THE CREDIT WAS INTENDED TO APPLY TO PAYROLL TAXES THIS YEAR AND HE SAID HE DECIDED TO MAKE THAT CASE AFTER THE NATIONAL RESTAURANT ASSOCIATION CAME TO HIM FOR HELP AS FOR HIS OWN INTEREST HE SAID IF EVERYBODY WHO HAD ANY KNOWLEDGE OF OR INVESTMENT IN A BUSINESS COULDN'T VOTE YOU WOULDN'T HAVE ANYBODY IN CONGRESS ABLE TO VOTE I CLEARLY DON'T HAVE A BIG INVESTMENT IN THE RESTAURANT BUSINESS REP WILLIAM JEFFERSON D LA ALSO ARGUED FOR KEEPING THE CURRENT LANGUAGE AS DID TEXAS REP BILL ARCHER THE PANEL'S LEADING REPUBLICAN WHILE THE COMMITTEE AGREED BY A SHOW OF HANDS TO DROP THE CLARIFICATION OTHER CORRECTIONS TO THE TAX BILL WILL COME UP FOR A VOTE NEXT WEEK 9310290162 931029 INTERNATIONAL BAYER TRADEMARKS THE WORD ASPIRIN' IN RUSSIA LEAVING RIVALS APOPLECTIC BY MARYA FOGEL STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW BAYER AG DOESN'T JUST WANT A SLICE OF RUSSIA'S HUGE ASPIRIN MARKET IT WANTS IT ALL AND COMPETITORS ARE CRYING FOUL LATE LAST YEAR RUSSIA'S PATENT OFFICE ROSPATENT AWARDED THE GERMAN CHEMICALS AND PHARMACEUTICALS GIANT THE REGISTERED TRADEMARK TO THE WORD ASPIRIN THE AWARD APPEARED TO GIVE BAYER THE EXCLUSIVE RIGHT TO MARKET PAIN RELIEVERS UNDER THE NAME ASPIRIN A HUGE COMPETITIVE ADVANTAGE BAYER'S RIVALS ARE GEARING UP FOR A FIGHT THE COUNTERATTACK IS BEING LED BY LABORATOIRE UPSA A FRENCH PHARMACEUTICALS COMPANY WHICH HAS CHALLENGED BAYER IN ROSPATENT'S CHAMBER OF APPEALS THE FRENCH COMPANY ARGUES THAT ASPIRIN IS A UNIVERSALLY ACCEPTED GENERIC TERM NOT A BRAND NAME THE CASE WHICH WILL BE A CRITICAL TEST FOR RUSSIA'S MODERNIZING PATENT LAWS IS DUE TO BE HEARD NEXT MONTH AT STAKE IS ONE OF THE WORLD'S BIGGEST POTENTIAL MARKETS FOR THE PAIN RELIEVER IN A COUNTRY OF 150 MILLION PEOPLE AT LEAST HALF USE ASPIRIN ESTIMATES LYANA BARANNOVA WHO WORKS FOR A RUSSIAN CONSUMER RESEARCH INSTITUTE PEOPLE TAKE ASPIRIN FOR THE FLU FOR HEADACHES SHE SAYS EVEN WHEN IT DOESN'T HELP PEOPLE TAKE ASPIRIN BUT THEY DON'T CALL IT ASPIRIN AT LEAST NOT OFFICIALLY THE WORD AND LABELING ASPIRIN FELL OUT OF USE IN THE 1970S WHEN THE WORD WAS DROPPED FROM RUSSIAN PRODUCTS IN FAVOR OF THE CATCHY CHEMICAL NAME ACETYLSALICYLIC ACID ASPIRIN'S MAIN INGREDIENT SINCE THE WORD HAS DROPPED OUT OF THE OFFICIAL LEXICON CAN BAYER UPHOLD ITS CLAIM TO BE THE ONLY MAKER OF THE PRODUCT BAYER BELIEVES IT CAN AND THE RUSSIAN PATENT ORGANIZATION HAS BACKED IT UP ROSPATENT OFFICIALS SAY THEY AWARDED BAYER THE TRADEMARK RIGHT FOR SEVERAL REASONS FOR STARTERS IT AGREED THAT THE WORD ASPIRIN HAS FALLEN OUT OF COMMON USE IN RUSSIA ON TOP OF THAT HISTORICALLY BAYER OR MORE ACCURATELY ITS PREDECESSOR COMPANY WAS THE WORLD'S FIRST MANUFACTURER OF ASPIRIN NEARLY A CENTURY AGO AND BAYER HOLDS TRADEMARK RIGHTS IN MANY COUNTRIES IT'S WORTH NOTING THAT BAYER AG CAN'T USE IT'S OWN NAME HERE IN THE STATES THE BAYER BRAND NAME IS OWNED IN THE US AND CANADA BY STERLING WINTHROP INC A UNIT OF EASTMAN KODAK CO ROCHESTER NY THE US GOVERNMENT CONFISCATED THE DOMESTIC ASSETS OF BAYER AG'S PREDECESSOR AFTER WORLD WAR I AND IN 1919 SOLD THEM INCLUDING THE RIGHTS TO THE BAYER NAME TO STERLING IN SIDING WITH THE GERMAN COMPANY ROSPATENT ALSO SAYS THAT BAYER USES A UNIQUE FORMULA THAT PRODUCES AN EFFECT DIFFERENT FROM ANY OTHER SOCALLED ASPIRIN BY HIGHLIGHTING THE DIFFERENCE ROSPATENT SAYS IT FEELS IT IS HELPING CONSUMERS MAKE AN EDUCATED CHOICE IF YOU GET MIXED UP BUYING MEDICINE IT'S A LOT MORE SERIOUS THAN SAY WHICH TYPE OF SNEAKERS YOU BUY SAYS ROBERT VOSKANJAN CHIEF OF ROSPATENT'S TRADEMARK DEPARTMENT BAYER WHICH EVENTUALLY HOPES TO PRODUCE ITS ASPIRIN IN RUSSIA EVEN IS CONSIDERING FILING ITS OWN SUIT AGAINST COMPETITORS THAT SELL ASPIRIN IN RUSSIA IN MANY INDUSTRIALIZED COUNTRIES INCLUDING FRANCE AND THE US THERE IS NO REGISTERED TRADEMARK FOR PLAIN ASPIRIN BAYER'S COMPETITORS ARGUE THEY BELIEVE THAT THE RUSSIAN MARKET SHOULD BE OPEN AS WELL THE WORD NEVER SHOULD HAVE BEEN REGISTERED IN THE FIRST PLACE SAYS EVGENY ARIEVICH OF INTELS LABORATOIRE UPSA'S LEGAL REPRESENTATIVE IN RUSSIA IT'S A UNIVERSALLY ACCEPTED GENERIC NAME INTELS WHICH SPECIALIZES IN INTELLECTUALPROPERTY LAW CONDUCTED A CONSUMER SURVEY IN RUSSIA TO PROVE THE POINT THE RESULTS SHOWED THAT FEW PEOPLE EVEN DOCTORS COULD ATTACH THE WORD ASPIRIN TO A SPECIFIC COMPANY LABORATOIRE UPSA BELIEVES ITS CASE IS BOLSTERED BY A LETTER IT RECEIVED FROM ROSPATENT ITSELF IN APRIL 1991 IN THE LETTER ROSPATENT FLATLY STATES THAT THE WORD ASPIRIN IS A GENERIC TERM YET IN SEPTEMBER 1992 HOWEVER ROSPATENT GAVE BAYER THE REGISTERED TRADEMARK RIGHTS RUSSIA'S PATENT SYSTEM MAY NOT BE UP TO THE LEGAL CHALLENGE ACCORDING TO RUSSIAN LAW IF EITHER BAYER OR LABORATOIRE UPSA IS DISSATISFIED WITH THE DECISION OF ROSPATENT'S APPEALS CHAMBER IT CAN APPEAL TO THE SUPREME PATENT COURT BUT THAT COURT EXISTS ONLY ON PAPER MR ARIEVICH SAYS ANY APPEAL WOULD SIT ON THE SHELF UNTIL A HIGHER COURT CAN BE SET UP THAT COULD HEAR THE CASE IN THE MEANTIME A VISIT TO A PHARMACY IN CENTRAL MOSCOW SHOWS THAT AT LEAST SOME SHOPKEEPERS ARE FAMILIAR WITH THE WORD ASPIRIN THE RUSSIAN VERSION WHICH IS IN CHRONICALLY SHORT SUPPLY IS SOLD OUT BUT THE SALESMAN HAPPILY RETURNS WITH SOME IMPORTED ASPIRIN ASPIRINE UPSA MANUFACTURED BY LABORATOIRE UPSA 9310290161 931029 ABREAST OF THE MARKET INDUSTRIALS FINISH AT NEW HIGH AS OUTPUT FIGURES SPARK BUYING BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE VAULTED TO ANOTHER RECORD AFTER AN UPBEAT REPORT ON THE ECONOMY UNLEASHED A WAVE OF BUYING DESPITE HOVERING ABOVE THE 3700 MARK FOR PART OF THE TRADING DAY THE INDUSTRIAL AVERAGE ENDED THE SESSION ONLY MODERATELY HIGHER THE AVERAGE CHALKED UP A GAIN OF 2320 POINTS TO FINISH AT 368786 ERASING THE RECORD SET MONDAY STANDARD & POOR'S 500STOCK INDEX JUMPED 312 TO 46773 FALLING WITHIN STRIKING DISTANCE OF A NEW HIGH AND THE NASDAQ COMPOSITE INDEX EDGED UP 161 TO 77349 SOME SPECIALIZED STOCK INDEXES ALSO TURNED IN STELLAR PERFORMANCES THE DOW JONES TRANSPORTATION AVERAGE ROCKETED 2928 POINTS TO 172793 ITS THIRD STRAIGHT HIGH LARGELY ON THE STRENGTH OF POSITIVE EARNINGS REPORTS FROM THE AIRLINE INDUSTRY NEW YORK STOCK EXCHANGE VOLUME SWELLED TO 2971 MILLION SHARES FROM 2771 MILLION WEDNESDAY ADVANCING ISSUES OUTPACED DECLINERS 1164 TO 869 STOCKS STARTED RISING FROM THE OPENING BELL THANKS TO A COMMERCE DEPARTMENT REPORT THAT SHOWED GROSS DOMESTIC PRODUCT EXPANDED AT A SEASONALLY ADJUSTED ANNUAL RATE OF 28 IN THE THIRD QUARTER WITHOUT THE CROP LOSSES CAUSED BY THIS SUMMER'S FLOODING IN THE MIDWEST AND DROUGHT IN THE SOUTHEAST GDP WOULD HAVE GROWN AT A 34 RATE THE REPORT NOTED THE NEWS WAS HERALDED BY STOCK INVESTORS AS THE LATEST SIGN OF A PICKUP IN THE ECONOMY THE GDP REPORT CONFIRMED THE SUSTAINABILITY OF EARNINGS SAID JEFFREY APPLEGATE CHIEF INVESTMENT STRATEGIST AT CS FIRST BOSTON MR APPLEGATE SAID THAT POSITIVE EARNINGS SURPRISES HAVE BEEN RUNNING SLIGHTLY AHEAD OF NEGATIVE EARNINGS SURPRISES IN THE THIRD QUARTER BUT IF YOU LOOK AT WHERE THE EARNINGS ARE COMING FROM IT'S NOT BECAUSE THE TOP LINE IS GREAT IT'S BECAUSE COSTS ARE UNDER CONTROL MR APPLEGATE SAID THAT COMPANIES CAN'T CONTINUE TO GENERATE PROFIT GAINS SOLELY ON THE BACK OF COSTCUTTING MEASURES THEY NEED A PICKUP IN BUSINESS ACTIVITY IF PROFITS ARE TO KEEP GROWING THE GDP NUMBER SAID THAT THE TOP LINE IS IMPROVING NOTED MR APPLEGATE HE SUGGESTED THAT ONE OF THE REASONS THE INDUSTRIAL AVERAGE HAS BEEN PERFORMING SO WELL RECENTLY IS THAT BY AND LARGE MOST OF THE POSITIVE EARNINGS SURPRISES HAVE BEEN OCCURRING IN SECTORS OF THE MARKET THAT ARE MORE SENSITIVE TO THE ECONOMY THESE INCLUDE AREAS SUCH AS CAPITAL GOODS CONSUMER CYCLICALS FINANCE AND TECHNOLOGY JEFFREY SHAMES CHIEF EQUITY OFFICER OF MASSACHUSETTS FINANCIAL SERVICES A BOSTONBASED MUTUAL FUND SAID THE POSITIVE READING ON THE ECONOMY SIMPLY PROMPTED HIM TO LOAD UP ON STOCK SECTORS THAT HE ALREADY FAVORS WE ARE BUYING MORE OF WHAT WE LIKE HE SAID FIRST IT'S BECAUSE WE ARE SEEING MORE MONEY COMING IN AND SECOND IT'S BECAUSE WE ARE IN A VERY BENIGN ENVIRONMENT WHERE INFLATION IS LOW AND GROWTH IS MODERATE EASTMAN KODAK WAS THE MOSTACTIVE STOCK IN COMPOSITE TRADING JUMPING 1 1/2 TO 63 3/4 INVESTORS EMBRACED THE STOCK AFTER THE FALTERING PHOTOGRAPHIC CONCERN SCORED A COUP BY NAMING MOTOROLA CHAIRMAN GEORGE MC FISHER ITS NEW CHAIRMAN AND CHIEF EXECUTIVE KODAK'S GAIN WHICH WAS MUCH LARGER ON THE BIG BOARD WHEN COMPARED WITH THE PREVIOUS DAY'S CLOSE ACCOUNTED FOR NEARLY HALF THE RISE IN THE DOW MEANWHILE MOTOROLA LOST 1 1/8 TO 104 1/2 GENERAL MOTORS RACED UP 2 1/8 TO 49 IT REPORTED THAT ITS THIRDQUARTER LOSS NARROWED TO 49 CENTS A SHARE FROM 186 A SHARE A YEAR AGO FORD ALSO ROSE GAINING 2 1/2 TO 62 7/8 PRUDENTIAL SECURITIES RAISED THE INVESTMENT RATING ON THE STOCK TO BUY FROM HOLD XEROX SOARED 5 3/4 TO 76 3/8 THIRDQUARTER PROFIT CLIMBED TO 128 A SHARE FROM 107 A YEAR AGO SMARTLY SURPASSING ANALYSTS' EXPECTATIONS UST CLIMBED 1 1/8 TO 25 7/8 AFTER DIVING 12 WEDNESDAY SOME MONEY MANAGERS SAID IN YESTERDAY'S HEARD ON THE STREET COLUMN THAT THE STOCK IS A BARGAIN EVEN THOUGH THE CLINTON HEALTH BILL PROPOSES BOOSTING THE TAX ON A TIN OF MOIST SMOKELESS TOBACCO ALSO KNOWN AS SNUFF TO MORE THAN 96 CENTS FROM LESS THAN THREE CENTS UST MAKES THIS TYPE OF TOBACCO A NUMBER OF ENCOURAGING EARNINGS REPORTS FROM AIRLINES BOOSTED THE TRANSPORTATION AVERAGE TO A RECORD UAL THE PARENT OF UNITED AIRLINES CLIMBED 6 TO 152 3/4 AFTER REPORTING THAT ITS THIRDQUARTER PROFIT BALLOONED TO 574 A SHARE FROM 27 CENTS A SHARE A YEAR AGO DESPITE THE PROFIT UAL SAID IT WILL REPORT A LOSS IN THE FOURTH QUARTER AND FOR THE YEAR DELTA AIR LINES GAINED 1 TO 58 1/4 THE COMPANY EARNED 65 CENTS A SHARE IN THE FIRST QUARTER AFTER POSTING A LOSS IN THE YEARAGO PERIOD CBL & ASSOCIATES PROPERTIES ADDED 1/8 TO 19 5/8 IN HEAVY TRADING AN INITIAL PUBLIC OFFERING OF 153 MILLION COMMON SHARES OF CBL WAS PRICED AT 1950 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS INTEL SLIPPED 1 TO 63 1/2 ON NASDAQ INVESTORS WERE FRETTING ABOUT INTEL'S PLANS TO AGGRESSIVELY PUSH LOWERPROFITMARGIN FLASH MEMORY CHIPS THEY FEARED THE INITIATIVE WOULD DILUTE THE COMPANY'S GROSS PROFIT MARGINS NEXTEL COMMUNICATIONS ROSE 1 1/8 TO 50 5/8 ON NASDAQ THE COMPANY SAID IT WILL BUY A KEY PLAYER IN THE RADIODISPATCH BUSINESS POWERFONE HOLDINGS FOR STOCK VALUED AT ALMOST 400 MILLION MEANWHILE OPPENHEIMER INITIATED COVERAGE OF THE COMPANY WITH A BUY RATING