WASHINGTON FEDERAL ANTITRUST ENFORCERS HAVE DECIDED THAT THE JUSTICE DEPARTMENT WILL REVIEW BELL ATLANTIC CORP'S PROPOSED ACQUISITION OF TELECOMMUNICATIONS INC AT THE SAME TIME ANTITRUST OFFICIALS FROM THE FEDERAL TRADE COMMISSION AND THE JUSTICE DEPARTMENT IN A BIT OF HORSETRADING BETWEEN THE AGENCIES SAID THE FTC WILL EVALUATE QVC NETWORK INC'S BID TO TAKE OVER PARAMOUNT COMMUNICATIONS INC THE FTC PREVIOUSLY CLEARED VIACOM INC'S BID FOR PARAMOUNT BOTH AGENCIES ARE RESPONSIBLE FOR STUDYING PROPOSED MERGERS TO ENSURE THAT THEY DON'T REDUCE COMPETITION TO THE POINT THAT THE MERGED COMPANIES HAVE THE POWER TO RAISE PRICES WITHOUT FEARING HOW COMPETITORS MIGHT RESPOND BECAUSE THE JUSTICE DEPARTMENT IS PART OF THE EXECUTIVE BRANCH CLINTON ADMINISTRATION POLICY FAVORING THE CREATION OF AN INFORMATION INFRASTRUCTURE NETWORK COULD CONCEIVABLY HAVE MORE OF AN INFLUENCE ON THE DECISION BY THE DEPARTMENT THAN IT WOULD ON THE FTC AN INDEPENDENT AGENCY THE BELL ATLANTIC/TCI DEAL WOULD BE PART OF THAT SOCALLED INFORMATION SUPERHIGHWAY DECISIONS BY JUSTICE AND FTC OFFICIALS ON THE TRANSACTIONS ARE WEEKS AWAY 9310290159 931029 TECHNOLOGY AMERICANS HAVING AIDS SURGED IN NINE MONTHS ATLANTA THE NUMBER OF AMERICANS DIAGNOSED WITH AIDS JUMPED SHARPLY THROUGH THE FIRST NINE MONTHS OF 1993 LARGELY BECAUSE OF AN EXPANDED DEFINITION OF THE DISEASE THE CENTERS FOR DISEASE CONTROL AND PREVENTION REPORTED THAT 85526 NAMES WERE ADDED TO THE ROLLS OF PATIENTS WITH ACQUIRED IMMUNE DEFICIENCY SYNDROME BETWEEN JANUARY AND SEPTEMBER THAT'S MORE THAN DOUBLE THE NUMBER A YEAR EARLIER MORE THAN HALF OF THOSE DIAGNOSED IN 1993 HOWEVER FELL UNDER AN EXPANDED DEFINITION OF THE ILLNESS THE REVISED DEFINITION WHICH BECAME EFFECTIVE IN JANUARY ADDS THREE ILLNESSES AS WELL AS THE NEAR ABSENCE OF DISEASEFIGHTING BLOOD CELLS TO THE LIST OF SYMPTOMS USED TO DETERMINE WHEN PEOPLE WITH THE HUMAN IMMUNE DEFICIENCY VIRUS HAVE AIDS IN ALL 339250 AMERICANS HAVE BEEN DIAGNOSED WITH AIDS SINCE THE START OF THE EPIDEMIC IN 1981 THE CDC SAID OF THOSE 204390 HAVE DIED THE LATEST FIGURES ACCORDING TO AGENCY OFFICIALS INDICATE THAT THE NUMBER OF INDIVIDUALS WITH AIDS IS INCREASING BETWEEN 3 AND 5 A YEAR 9310290158 931029 RETAILING EARLY COUPON CAMPAIGN BY TOYS R' US MAY SPARK PRICE WAR AMONG DISCOUNTERS BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL AGGRESSIVE COUPONING BY TOYS R US INC MAY TOUCH OFF A CHRISTMAS SEASON PRICE WAR WITH WALMART STORES INC KMART CORP AND OTHER DISCOUNT RETAILERS TOYS R US WILL TRY TO PERSUADE 52 MILLION US HOUSEHOLDS TO SHOP EARLY THIS YEAR BY DELIVERING 491 OF COUPONS IN THEIR SUNDAY NEWSPAPERS ON NOV 7 THE DISCOUNTS GOOD FOR NOVEMBER ONLY DWARF ANYTHING THE GIANT TOY RETAILER HAS OFFERED BEFORE THE HOLIDAY IN THE PAST THEY WILL BE COMPLEMENTED ON THANKSGIVING DAY BY A PAID HALFHOUR ANIMATED TV FEATURE STARRING NEW TOYS R US STUFFED ANIMALS BECAUSE TOYS ARE A MAJOR DRAW FOR GENERAL DISCOUNTERS MANY WILL HAVE TO MATCH TOYS R US PRICES ANALYSTS THEORIZE NOBODY WANTS TO HOLD THE HOT POTATO OF INVENTORY RISKS COME DEC 26 PARTICULARLY ON TOYS KNOWN FOR THEIR SHORTLIVED CYCLES SAYS JOHN TAYLOR AN ANALYST AT LH ALTON & CO BUT MATCHING THE TOYS R' US CAMPAIGN WON'T BE EASY I DON'T KNOW WHAT KIND OF COMPETITIVE RESPONSE KMART AND WALMART CAN PULL TOGETHER SAYS SEAN MCGOWAN AN ANALYST AT GERARD KLAUER MATTISON INC I DON'T KNOW IF THEY CAN ORGANIZE THEMSELVES QUICKLY ENOUGH TO ANSWER TOYS R' US THIS YEAR OFFICIALS AT KMART AND WALMART DIDN'T RETURN PHONE CALLS SEEKING COMMENT THE TOYS R US PROMOTION IS AN INDICATION THAT TOY RETAILERS ARE CONCERNED THAT THE YEAR'S TEPID SALES COULD CARRY OVER INTO CHRISTMAS THE TOY BUSINESS IS INCREDIBLY FLAT RIGHT NOW SAYS STEPHEN SANDBERG A TOY WHOLESALER IN FOXBORO MASS RETAILERS ARE LOOKING FOR SOMETHING BIG TO COME ALONG AND CREATE EXCITEMENT LAST YEAR TOYS R US PRINTED SIX MILLION FLYERS EACH CARRYING 313 IN DISCOUNT COUPONS THAT WERE STACKED IN ITS STORES THE NEW COUPON CATALOG TO BE UNVEILED BEFORE ANALYSTS IN NEW YORK TODAY RIVALS THE SEARS WISHBOOK OF THE OLD DAYS SAYS GERARD KLAUER'S MR MCGOWAN BUT SOME SHOPPERS MAY WISH FOR OTHER COUPONS FEW OF THE HOTTEST TOYS ARE BEING OFFERED IN THE PROMOTION AMONG THE SAVINGS 5 OFF THE 1999 PRICE TAG OF HASBRO INC'S CABBAGE PATCH KID FIGURINES 4 OFF BARBIE'S FOLD N FUN HOUSE WHICH NORMALLY RETAILS FOR 4999 AND 3 OFF FISHERPRICE'S 1399 BEGINNER SKATES OTHER DISCOUNTS RANGE UP TO 25 ALTHOUGH THE COUPONS ARE GOOD ONLY AT TOYS R US ANALYSTS AND TOY MAKERS SAY THE BRUNT OF THE DISCOUNTING WILL BE BORNE BY MANUFACTURERS REPRESENTING SOMETHING OF A COUP FOR THE RETAILER WHICH HAS ENORMOUS POWER IN THE INDUSTRY TOY MAKERS HAVE INDICATED THEY WILL WORK HARD IN OTHER WAYS FOR CONSUMER DOLLARS MATTEL INC WHICH INTRODUCED COUPONS TO THE TOY INDUSTRY IN 1988 PLANS TO DISTRIBUTE MORE THAN 15 BILLION COUPONS RANGING IN VALUE FROM 1 TO 10 BETWEEN AUGUST AND THE END OF THE YEAR ITS BIGGEST DISCOUNT PROGRAM EVER TYCO TOYS INC HAS ANNOUNCED A 16 BILLION COUPON CAMPAIGN IN THE TOY INDUSTRY ABOUT 2 OF COUPONS ARE REDEEMED BY CONSUMERS ACCORDING TO LH ALTON'S MR TAYLOR HE ESTIMATES THAT CUSTOMERS MAKING PURCHASES WITH THE COUPONS WILL SPEND 500 MILLION AT TOYS R US ACCOUNTING FOR ABOUT 15 OF THE COMPANY'S BUSINESS IN THE FOURTH QUARTER ALONG WITH INCREASED SALES ONE OF TOYS R US'S GOALS THIS YEAR IS TO GET MORE PEOPLE TO PLAN THEIR VISITS TO TOYS R US STORES INSTEAD OF JUST DROPPING BY WHILE THEY ARE OUT SHOPPING THUS IN ADDITION TO THE COUPONS THE COMPANY WILL SELL STUFFED ANIMALS A VIDEOTAPE AND A BOOK TIED TO ITS THANKSGIVING DAY NICK AND NOEL PROGRAM THE SHOW IS PAID ADVERTISING BUT MICHAEL GOLDSTEIN VICE CHAIRMAN OF TOYS R US SAYS WE THINK WE'RE CREATING SOME REAL GOOD FAMILY ENTERTAINMENT PEGGY CHARREN MEDIA CONSULTANT AND FOUNDER OF ACTION FOR CHILDREN'S TELEVISION DISAGREES SHE CALLS THE CARTOON A PROGRAMLENGTH COMMERCIAL FOR A COUPLE OF TOYS THOUGH SHE ADDS THAT THE HORRIBLE THING IS THAT THE SHOW'S PROBABLY GOING TO BE PERCEIVED AS THE MOST WONDERFUL SHOW THAT DAY BY PARENTS WHO ARE SICK OF VIOLENCE ON TV AND WE'LL PROBABLY GIVE IT AN EMMY AT THE END OF THE YEAR 9310290157 931029 MARKETING & MEDIA QVC ASKS COURT TO BLOCK VIACOM'S PARAMOUNT OFFER WILMINGTON DEL QVC NETWORK INC ASKED A COURT HERE TO BLOCK A TENDER OFFER BY VIACOM INC FOR PARAMOUNT COMMUNICATIONS INC SAYING PARAMOUNT SHOULD HAVE TALKED TO QVC BEFORE NEGOTIATING A REVISED MERGER WITH VIACOM LAST SUNDAY AMENDING AN EARLIER LAWSUIT IN DELAWARE CHANCERY COURT QVC ASKED THAT VIACOM'S 10 BILLION 7996ASHARE OFFER BE DELAYED UNTIL QVC CAN OBTAIN REGULATORY APPROVALS INCLUDING ANTITRUST CLEARANCE FOR ITS OWN OFFER OF 101 BILLION OR 8074 A SHARE VIACOM HAS ALREADY RECEIVED ANTITRUST CLEARANCE SOMETHING QVC COULDN'T APPLY FOR UNTIL IT ANNOUNCED ITS HOSTILE BID LAST WEEK VIACOM HAS A TWODAY HEADSTART IN COMPLETING ITS TENDER OFFER BECAUSE IT LAUNCHED ITS BID MONDAY AND QVC BEGAN ITS OFFER WEDNESDAY AND FOR THE FIRST TIME QVC ATTACKED PARAMOUNT'S ABILITY TO USE ITS POISONPILL ANTITAKEOVER DEFENSE WHICH MAKES A TAKEOVER PROHIBITIVELY EXPENSIVE FOR A HOSTILE BIDDER TO FAVOR VIACOM PARAMOUNT RESPONDED TO THE LAWSUIT BY CALLING IT ABSOLUTELY WITHOUT SUBSTANCE AND A DELIBERATE DISTRACTION FROM THE MAIN EVENT OUR REVISED MERGER WITH VIACOM AND RELATED TENDER OFFER 9310290156 931029 CORRECTIONS & AMPLIFICATIONS STANDARD & POOR'S CORP SAID NORTH ATLANTIC ENERGY CORP AND PUBLIC SERVICE CO OF NEW HAMPSHIRE OPERATING UNITS OF NORTHEAST UTILITIES WERE PLACED ON CREDITWATCH WITH NEGATIVE IMPLICATIONS AN ARTICLE YESTERDAY INCORRECTLY REPORTED THAT THE PARENT HAD BEEN PLACED ON CREDITWATCH WITH NEGATIVE IMPLICATIONS 9310290155 931029 MAGNETEK WILL SHED SOME SIDE BUSINESSES OVER THE NEXT YEAR LOS ANGELES MAGNETEK INC SAID IT PLANS TO SHED SOME PERIPHERAL BUSINESSES OVER THE NEXT YEAR IN A PLAN TO TRIM ITS HEAVY DEBT AND FOCUS ON INTERNAL GROWTH RATHER THAN ACQUISITIONS THE COMPANY SAID IT HASN'T IDENTIFIED THE OPERATIONS OR PRODUCTS TO BE DIVESTED OR SPUN OFF THE PLAN WON'T NECESSARILY INVOLVE JOB LOSSES SPOKESMAN ROBERT W MURRAY SAID MAGNETEK'S CORE BUSINESS IS ENERGYENGINEERED PRODUCTS INCLUDING LIGHTING BALLASTS ELECTRIC MOTORS DRIVES AND GENERATORS HE SAID THE COMPANY IS BURDENED BY DEBT TAKEN ON TO FINANCE GROWTH SINCE 1984 TWOTHIRDS OF THAT GROWTH HAS COME THROUGH ACQUISITIONS AT SEPT 30 DEBT WAS 531 MILLION GIVING THE COMPANY A 3TO1 DEBTTOEQUITY RATIO WE HAVE A TARGET TO CUT THAT TO 1TO1 MR MURRAY SAID MAGNETEK SAID IT EXPECTS TO HOLD CAPITAL EXPENDITURES TO UNDER 40 MILLION IN FISCAL 1994 ENDING JUNE 30 COMPARED WITH 68 MILLION SPENT IN FISCAL 1993 IN ADDITION THE COMPANY HOPES TO CONVERT TO EQUITY A 75 MILLION BOND THAT IS CALLABLE IN SEPTEMBER MAGNETEK ALSO ADOPTED A RIGHTS PLAN TO PROTECT SHAREHOLDERS AGAINST UNDESIRABLE TAKEOVER THE COMPANY'S STOCK FELL IN RECENT MONTHS ON DISAPPOINTING EARNINGS BUT CLOSED AT 14875 UP 75 CENTS OR 53 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING THE RESTRUCTURING ANNOUNCEMENT CAME LESS THAN A MONTH AFTER THE RESIGNATION OF PRESIDENT AND CHIEF EXECUTIVE OFFICER FRANK PERNA JR THE COMPANY SAID IT FORMED A COMMITTEE OF OUTSIDE DIRECTORS TO RECRUIT A SUCCESSOR CHAIRMAN ANDREW G GALEF IS ACTING CEO 9310290154 931029 LEISURE & ARTS OPERA DOMINGO IN RARE VERDI BY MANUELA HOELTERHOFF NEW YORK HARDLY A MOMENT GOES BY IN VERDI'S STIFFELIO WITHOUT SOMEONE WRITING A LETTER TO SOMEONE ELSE THEN THEY HIDE THEM IN RICHLY ADORNED BOOKS TEAR THEM UP IN A FUNK OR THROW THEM INTO THE FIREPLACE THEN THEY WRITE A FEW MORE THE FIERCE SCRIBBLING DOESN'T COME TO AN END UNTIL A LUCKLESS IF LITERATE ADULTERER DISCOVERS THAT THE OLD CLICHE ABOUT THE MIGHT OF THE PEN IS NOT ALWAYS TRUE HE FALLS DEAD TO THE CASTLE FLOOR WITH A SWORD THROUGH HIS BACK IT WAS ONE OF MANY ENTERTAINING MOMENTS IN THE METROPOLITAN OPERA'S NEW PRODUCTION OF THIS NEGLECTED MASTERPIECELET FROM VERDI'S MIDDLE PERIOD GRANDLY STAGED BY GIANCARLO DEL MONACO ENTHUSIASTICALLY CONDUCTED BY JAMES LEVINE AND FEATURING A CAST THAT INCLUDED ONE OF THE WORLD'S GREATEST TENORS AND LARGEST SOPRANOS STIFFELIO'S ECCENTRIC CHARMS PROVED HARD TO RESIST THE CAPACITY AUDIENCE WAS QUITE BESIDE ITSELF WHEN THE CURTAIN CAME DOWN ON PLACIDO DOMINGO IN HIS CLOTH AND COLLAR AND SHARON SWEET IN SOMETHING DARK AND SHREWDLY DRAPED WHY ISN'T THIS PIECE DONE MORE OFTEN WE COULD ONLY WONDER PLEASANTLY ABSORBED IN THE ODDBALL SPECTACLE OF A PROTESTANT MINISTER ENCUMBERED BY A WANDERING WIFE AND A HOMICIDAL FATHERINLAW AS THE OPERA STARTS STIFFELIO IS JUST RETURNING FROM A RELIGIOUS MISSION GLAD TO BE HOME FOR ABOUT FIVE SECONDS IT IS SOON PAINFULLY CLEAR TO HIM THAT HIS WIFE LINA HAS BEEN ENTERTAINING A FECKLESS YOUTH RAFFAELE OF LEUTHOLD IN HIS ABSENCE THREE ACTS AND SEVERAL LETTERS LATER FATHERINLAW STANKAR HAS SAVED THE FAMILY HONOR BY BREAKING THE SIXTH COMMANDMENT IN THE FINAL AND MOST EFFECTIVE MOMENT STIFFELIO STEPS TO THE PULPIT AND PUBLICLY FORGIVES LINA AS HE READS THE GOSPEL STORY OF THE WOMAN TAKEN IN ADULTERY JUST WHAT PASSAGE HE'S GOING TO FIND TO EXCULPATE STANKAR IS HARD TO IMAGINE ALL THIS UNFOLDS NOT IN SOME DISTANT MYTHIC TIME BUT IN THE 19TH CENTURY NEAR SALZBURG THOUGH THE PEOPLE ARE MYSTERIOUSLY REFERRED TO AS GERMANS LOGIC IS NOT THE LIBRETTO'S STRONG SUIT AT ONE POINT STIFFELIO'S PROTESTANT CONGREGATION SINGS A MISERERE MORE COMMONLY ASSOCIATED WITH ROMAN CATHOLICS LUTHER WAS HISSING IN HIS GRAVE FRANCESCO MARIA PIAVE OF RIGOLETTO FAME ADAPTED THE STORY IN 1850 FROM A TORTUROUSLY TURNED PLAY BY TWO FRENCH WRITERS NO ONE EVER CONFUSED WITH SHAKESPEARE OR FOR THAT MATTER SCHILLER WHO PROVIDED VERDI WITH THE STORY FOR THE OPERA HE WROTE JUST BEFORE STIFFELIO THE DREARY LUISA MILLER WITH US STILL FOR INEXPLICABLE REASONS WHILE STIFFELIO HAS LANGUISHED BOTH WERE MANGLED BY CENSORS WHO WERE ALWAYS HAPPY WHEN VERDI FINISHED AN OPERA BECAUSE HE COULD BE COUNTED ON TO WRITE SOMETHING ALARMING THEY WOULD BE PAID TO FIX STIFFELIO REALLY KEPT THEM BUSY BY THE TIME THE OPERA OPENED IN TRIESTE STIFFELIO HAD BEEN DOWNGRADED TO A SECULAR PERSONALITY AND ALL REFERENCES TO HIS MINISTRY ELIMINATED AS INAPPROPRIATE TO THE STAGE WHAT HAD ATTRACTED VERDI TO THE STORY THE STRUGGLE BETWEEN RELIGIOUS FAITH AND SEXUAL PASSION WAS BLITHELY HACKED FROM THE SCORE IN A DESPERATE SALVAGE OPERATION THE COMPOSER RECYCLED MUCH OF STIFFELIO INTO THE SAFELY CONSERVATIVE DUD AROLDO ABOUT A CUCKOLDED ENGLISH CRUSADER A FEW YEARS AGO VENICE'S LA FENICE PLAYED BOTH PIECES ON ALTERNATE NIGHTS IN A TRUE SERVICE TO OPERA NUTS TO SEE WHICH WAS BETTER STIFFELIO WON MORE RECENTLY A COVENT GARDEN PRODUCTION WITH JOSE CARRERAS AND CATHERINE MALFITANO NOW AVAILABLE ON VIDEOCASSETTE CONFIRMED THE WORK'S SIGNIFICANCE ANY REMAINING DOUBTS STARTED FADING DURING THE OVERTURE WITH ITS MELANCHOLY TRUMPET SOLO STIFFELIO LACKS A HIT TUNE BUT ITS MIX OF OLDFASHIONED FLASHY ARIAS AND THE MORE PROFOUND MUSICAL LANGUAGE OF VERDI'S MATURITY IS ALWAYS FASCINATING INSIDE STIFFELIO'S TRADITIONAL STRUCTURE IS A MODERN OPERA STRUGGLING TO BREATHE FREE THERE ARE HINTS OF GREAT WORKS TO COME RIGOLETTO AND TRAVIATA FOR INSTANCE AND EVEN OTELLO AS STIFFELIO FIGHTS TO CONTROL HIS CHURNING EMOTIONS AND THEN FALLS INTO A FAINT MR DOMINGO COULD HARDLY HAVE ASKED FOR A BETTER ROLE THAN THIS PASSIONATE MINISTER IN MIDDLE AGE IN HIS 25TH YEAR AT THE MET THE TENOR SOUNDS WONDERFULLY FRESH AND LIMBER AND HIS INTENSELY EMOTIONAL PORTRAYAL KEPT THE OPERA GOING AT FEVER PITCH STIFFELIO DOES HAVE EMPTY AWKWARD MOMENTS BUT THEY WERE MINIMIZED BY MR DEL MONACO'S FEELING FOR REFINED SPECTACLE THE CONGREGATION'S CANDLELIT BANQUET GLIMPSED BEHIND GLASS DOORS AND DETAILED ATTENTION TO CHARACTER EVEN THE UNDERWRITTEN ROLE OF RAFFAELE WAS FLESHED OUT BY NEWCOMER PETER RIBERI INTO A SHARP STUDY OF A CALLOW LITTLE FOP WHO WAS CAREFUL NOT TO SMUDGE HIS SUIT AS HE LEANED AGAINST THE LETTERREADY FIREPLACE SUPPLIED BY THE PRODUCTION'S DESIGNER MICHAEL SCOTT HIS STAGEFILLING ELEGANTLY TRADITIONAL SETS OF A CASTLE DRAWING ROOM A GRAVEYARD AND A CHURCH WERE SO IMPOSING THAT THEY BESTOWED A CERTAIN DIGNITY ON THE PLOT'S SILLIER MOMENTS AND THE SOPRANO'S LIMITED CAPACITY FOR MOTION WHEN MS SWEET FINALLY AROSE AFTER A VERY LONG REST AT THE CASTLE'S VERY LONG DINING TABLE IT WAS AS IF ONE OF THE GIGANTIC STATUES BY FERNANDO BOTERO CURRENTLY DISPLAYED OUTDOORS ON PARK AVENUE HAD RUMBLED LOOSE FROM ITS MOORINGS TO SEE WHAT WAS COOKING AT LINCOLN CENTER BUT WHAT A VOICE THIS IS NOT YET FULLY POLISHED OR ALWAYS ACCURATELY PITCHED BUT AMAZING ANYHOW IN ITS GALEFORCE POWER AND GORGEOUS AMPLITUDE IF MS SWEET'S GRAVEYARD ARIA VEERED ADVENTUROUSLY INTO QUARTER TONES UNIMAGINED BY VERDI SHE WON OUT IN ANOTHER SURPRISING SCENE THE UNSCHEDULED TRIO FOR LINA STANKAR AND PROMPTER WITH THE LATTER PERHAPS INSPIRED BY THE BOOMING SOPRANO INTO A LUSTY FORTISSIMO CONTRIBUTION VLADIMIR CHERNOV WAS STANKAR ANNOUNCED AS AILING HALFWAY THROUGH THE EVENING BY MET MANAGER JOE VOLPE MAKING HIS OWN SURPRISING CONTRIBUTION EVEN SO THE RUSSIAN BARITONE MADE A MORE VIVID IMPRESSION THAN USUAL CAPTURING THROUGH VOICE AND POSTURE ALL THE VAINGLORIOUS AIRS OF THIS PROVINCIAL OLDTIMER STIFFELIO REPEATS ON NOV 1 6 10 AND 13 MATINEE AND RETURNS IN MARCH 9310290153 931029 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 3 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 74 DAYS 325 75 TO 159 DAYS 328 160 TO 239 DAYS 330 240 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 254 ONE MONTH 260 TWO MONTHS 271 THREE MONTHS 277 SIX MONTHS 292 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 3125 ONE MONTH 330 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 305 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 1/2 3 3/8 TWO MONTHS 3 7/16 3 5/16 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 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 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 668 60 DAYS 676 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 671 60 DAYS 681 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 490 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9310290152 931029 WHO'S NEWS GENERAL INSTRUMENT PICKS NEW PRESIDENT TWO UNITS TO MERGE CHICAGO GENERAL INSTRUMENT CORP A SUPPLIER OF EQUIPMENT TO THE CABLETELEVISION INDUSTRY NAMED RICHARD S FRIEDLAND PRESIDENT AND CHIEF OPERATING OFFICER AND SAID IT WOULD COMBINE TWO OF ITS DIVISIONS TO REFLECT THE CONVERGENCE OF THE CABLE AND SATELLITE INDUSTRIES GENERAL INSTRUMENT MAKES CABLE CONVERTER TERMINALS BOXES THAT CONVERT CABLE SIGNALS AND MAKE IT POSSIBLE TO RECEIVE PROGRAMMING AS WELL AS SYSTEMS THAT SCRAMBLE AND UNSCRAMBLE CABLE SIGNALS SENT VIA SATELLITE BUT SPURRED BY A RUSH BY CABLE AND PHONE COMPANIES TO PROVIDE A TORRENT OF PHONE DATA AND VIDEO SERVICES TO HOMES THESE TECHNOLOGIES ARE RAPIDLY OVERLAPPING AND IT MAKES SENSE FOR THE COMPANY TO CONSOLIDATE THE JERROLD COMMUNICATIONS AND VIDEOCIPHER DIVISIONS MR FRIEDLAND SAID AS PRESIDENT MR FRIEDLAND 42 YEARS OLD SUCCEEDS DONALD RUMSFELD 61 WHO RESIGNED IN AUGUST THE OPERATING CHIEF'S POST IS NEW MR FRIEDLAND WHO HAS BEEN WITH THE COMPANY FOR 15 YEARS IS CURRENTLY VICE PRESIDENTFINANCE AND CHIEF FINANCIAL OFFICER HE WILL REMAIN CHIEF FINANCIAL OFFICER UNTIL A SUCCESSOR IS NAMED GENERAL INSTRUMENT'S NEWLY CONSOLIDATED DIVISIONS WHICH HAVE TOTAL ANNUAL REVENUE OF ABOUT 750 MILLION WILL BE CALLED BROADBAND COMMUNICATIONS AND BE HEADED BY HAL M KRISBERGH 46 THE COMPANY ALSO ELECTED MR FRIEDLAND AND FELIX ROHATYN 65 A SENIOR PARTNER AT LAZARD FRERES & CO TO ITS BOARD THEY FILL THE SEATS VACATED BY MR RUMSFELD AND WILLIAM LOWE CHAIRMAN AND CHIEF EXECUTIVE OF GULFSTREAM AEROSPACE CORP WHO BOTH RETIRED FROM THE BOARD 9310290151 931029 WORLD MARKETS TOKYO PRICES DROP 18 TO NEW FOURMONTH LOW RAIL ISSUE'S IMPACT PUTS MARKET FURTHER OFF TRACK A WALL STREET JOURNAL NEWS ROUNDUP STOCKS IN TOKYO SKIDDED 18 THURSDAY AGAIN MARKING A FOURMONTH LOW AS THE FALLOUT FROM EAST JAPAN RAILWAY'S NEW LISTING CONTINUED TO SHOCK THE MARKET PRODUCING A FLOOD OF SELL ORDERS IN A PROFITTAKING BINGE LONDON SHARES FINISHED HIGHER AS SENTIMENT WAS CHEERED BY AN EARLY WALL STREET RALLY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11292 UP 012 REFLECTING HIGHER EUROPEAN AND AMERICAN MARKETS AND LOWER ASIA/PACIFIC MARKETS OTHER RECREATIONAL PRODUCTS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12030 UP 403 OR 35 WITH EASTMAN KODAK OF THE US POSTING AN 83 GAIN IN ITS LOCAL CURRENCY TRUCKING STOCKS TRAILED AT 11680 DOWN 275 OR 23 WITH NIPPON EXPRESS OF JAPAN SLIDING 65 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH TUMBLED 18482 POINTS WEDNESDAY SANK 35933 POINTS TO 1947945 NEAR THE INTRADAY LOW OF 1944354 FOR THE LOWEST FINISH SINCE 1921243 ON JUNE 21 THIS ALSO MARKED THE SECOND CONSECUTIVE FINISH BELOW A PERCEIVED SUPPORT LEVEL OF 20000 ON FRIDAY IN TOKYO THE NIKKEI INDEX ROSE 9121 POINTS TO CLOSE THE MORNING SESSION AT 1957066 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 220 MILLION SHARES DOWN FROM 2617 MILLION SHARES A DAY EARLIER LOSERS SWAMPED GAINERS 800170 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 1336 POINTS WEDNESDAY PLUNGED 2956 OR 18 TO 160239 THE LISTING OF EAST JAPAN RAILWAY KNOWN AS JR EAST HAD RAISED HOPES OF REINVIGORATED DEALINGS ON THE TOKYO EXCHANGE INDEED JR EAST TURNED OUT TO BE AN EXPRESS TRAIN BUT IT SURPRISED THE MARKET FIRST WHEN OTHER SHARES WERE SOLD OFF HEAVILY TO BUY JR EAST POSITIONS AMID A HUGE ORDER IMBALANCE AND TRADING SUSPENSION AND THEN THURSDAY HURT THE WOUNDED EXCHANGE FURTHER WHEN JR EAST HOLDERS SOLD SHARES TO SNAG PROFITS AFTER THE HUGE JUMP FROM THE INITIAL OFFERING PRICE OF 380000 YEN 349828 AFTER ANOTHER TEMPORARY SUSPENSION THURSDAY JR EAST FINISHED AT 525000 YEN DOWN 75000 YEN OR 13 PROCESSING DIFFICULTIES CONTINUED TO HAMPER PROFITTAKING IN JR EAST AND THIS ERODED SENTIMENT FURTHER SO THE MARKET TURNED TO A BROADER RANGE OF STOCKS AND PUSHED THEM DOWN THE WILD JR EAST PERFORMANCE LED SOME INDIVIDUAL INVESTORS TO SELL LARGECAPITALIZATION SHARES TO MEET MARGIN CALLS OR PAYMENTS FOR STOCKS BOUGHT ON CREDIT EXPORTORIENTED SHARES FARED WELL IN THE MORNING SESSION AS THE JAPANESE YEN RETREATED AGAINST THE US DOLLAR BUT THESE STOCKS FELL BACK AFTER A US ECONOMIST SAID AT A TOKYO FORUM THAT HE FAVORED SEEING THE DOLLAR CLOSER TO 105 YEN THAN CURRENT LEVELS AROUND 108 YEN BUT THE DOLLAR REBOUNDED LATER THURSDAY COMMERCIAL BANKING STOCKS FELL ON POOR PROFIT EXPECTATIONS DEPARTMENT STORES SLUMPED ON LOWER JAPANESE RETAIL SALES LAST MONTH IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 87 POINTS TO 31630 THE FT 30STOCK INDEX GAINED 99 POINTS TO 23935 VOLUME WAS 7392 MILLION SHARES COMPARED WITH 7114 MILLION SHARES A DAY EARLIER THE MARKET OSCILLATED WITHIN A 20POINT RANGE AS INVESTORS SEARCHED FOR A THEME WHICH THE OPENING SURGE ON WALL STREET PROVIDED THE MARKET HAD BEEN HELD DOWN EARLIER IN THE SESSION BY SOME WEAKNESS IN SECTORS AS FOOD RETAILING INVESTORS CONTINUED TO REACT TO NEWS THAT THESE COMPANIES FACE COMPETITIN FROM US WHOLESALE DISCOUNTERS AND MOST OF THE SECTOR ENDED WITH FURTHER LOSSES IN FRANKFURT SHARE PRICES ENDED LOWER IN A QUIET CONSOLIDATION ON LOW VOLUME THE DAX 30STOCK INDEX SLIPPED 462 POINTS TO 203846 AFTER DAWDLING WITHIN A RANGE OF ABOUT EIGHT POINTS FOR THE SECOND CONSECUTIVE SESSION BOND PRICES WERE SOFTER WHICH ADDED TO HESITANCY IN THE STOCK MARKET IN PARIS STOCKS ENDED WITH SLIGHT GAINS AFTER A LATE COMEBACK FROM A SELLOFF THAT PUSHED THE MAIN INDEX DOWN 11 AT ONE POINT MUCH OF THE BUYING WAS SAID TO COME FROM THE US AND BRITAIN AFTER WALL STREET'S STRONG OPENING IN AMSTERDAM SHARES ROSE BROADLY BUOYED BY A STRONGER DOLLAR AND THE EARLY RALLY ON WALL STREET AS WELL AS A DUTCH COMMERCIAL BANK'S CUT IN MORTGAGE LENDING RATES AND REMARKS BY AN OFFICIAL OF THE GERMAN CENTRAL BANK THAT IT WOULD USE ANY OPPORTUNITY TO LOWER INTEREST RATES IN MADRID STOCKS CLOSED HIGHER BOUNCING BACK AFTER A FEW SESSIONS DOMINATED BY PROFITTAKING THE RISE WAS STIMULATED BY NEW YORK STOCKS' EARLY STRENGTH STOCKHOLM EQUITIES JUMPED 1 TO A RECORD HIGH LED BY GAINS IN THE AUTO AND TELECOMMUNICATIONS SECTORS AND A 21 REBOUND FOR THE BANKING SECTOR WHICH HAD FALLEN 37 THE PREVIOUS DAY ON PROFITTAKING IN SYDNEY SHARE PRICES ROSE MODERATELY PARTLY BECAUSE OF HEAVY TURNOVER IN STOCK OPTIONS IN HONG KONG STOCKS SPURTED HIGHER AND FINISHED NEAR THEIR RECORD PEAK AS THE OCTOBER FUTURES CONTRACTS EXPIRED IN SINGAPORE PRICES CLOSED MIXED FOLLOWING AFTERNOON PROFITTAKING IN TAIPEI EQUITIES LOST GROUND AS INVESTORS WEARIED OF POLITICAL UNCERTAINTY ABOUT COMING ELECTIONS IN TAIWAN IN SEOUL STOCKS SLIPPED AMID CONTINUED BEARISHNESS ON LARGECAPITALIZATION ISSUES BUT IN MANILA FOLLOWING A THREEDAY CONSOLIDATION THE COMPOSITE INDEX POWERED UP 9815 POINTS OR 44 TO A RECORD FINISH OF 232659 TOPPING 2300 FOR THE FIRST TIME AND IN BANGKOK THE SET INDEX SOARED 46 POINTS OR 39 TO 123918 SETTING A RECORD FOR THE SECOND DAY IN A ROW BLUE CHIPS GAINED SMARTLY WITH THE HOTTEST SECTORS ADVANCING BETWEEN 31 AND 82 AMONG CORPORATE DEVELOPMENTS IN LONDON WELLCOME PLUNGED 91 PENCE OR 11 TO 712 PENCE 1054 ON PROFITTAKING THE PHARMACEUTICAL COMPANY'S PRETAX PROFIT FOR THE YEAR ENDED AUG 31 CLIMBED 46 TO 6671 MILLION 9876 MILLION FROM THE YEAREARLIER 457 MILLION RESTATED UNDER NEW ACCOUNTING RULES AFTER BEING POSTED INITIALLY AS 505 MILLION THE LATEST RESULTS SLIGHTLY EXCEEDED ANALYSTS' EXPECTATIONS BUT THEY INCLUDED A 17 MILLION SPECIAL GAIN AND FAVORABLEEXCHANGE RATE MOVEMENTS FROM THE POUND STERLING'S DEPRECIATION AND MASKED SLOWING GROWTH IN SEVERAL IMPORTANT WELLCOME MARKETS AND PRODUCT LINES THE DIVIDEND WAS RAISED 33 TO 173 PENCE A SHARE IMPERIAL CHEMICAL INDUSTRIES ROSE 13 OR 18 TO 718 FAR EXCEEDING EXPECTATIONS THIRDQUARTER PRETAX PROFIT TOTALED 93 MILLION THE FIRST RESULTS THAT EXCLUDE BIOSCIENCE OPERATIONS THAT WERE SPLIT OFF AS ZENECA GROUP ON JUNE 1 AND THUS AREN'T COMPARABLE WITH THE YEAREARLIER FIGURES 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 9310290150 931029 BUSINESS BRIEF HEALTHVEST INC COURT APPROVES REIT'S PLAN FOR HEALTHCARE INTERNATIONAL HEALTHVEST INC A REAL ESTATE INVESTMENT TRUST SAID A FEDERAL BANKRUPTCY COURT IN AUSTIN TEXAS HAS APPROVED HEALTHVEST'S PROPOSED REORGANIZATION OF HEALTHCARE INTERNATIONAL INC A HOSPITALMANAGEMENT COMPANY UNDER THE REORGANIZATION PLAN WHICH ALREADY HAS BEEN APPROVED BY HEALTHCARE'S CREDITORS THE TWO AUSTINBASED CONCERNS WILL MERGE WITH HEALTHVEST SHAREHOLDERS RECEIVING 96 OF THE SURVIVING COMPANY THE REMAINING 4 WILL GO TO HEALTHCARE'S SUBORDINATED BONDHOLDERS HEALTHVEST SAID THE ORDER CONFIRMING THE PLAN IS EXPECTED TO BE ENTERED BY THE COURT ON NOV 10 CONFIRMATION IS SUBJECT TO THE CLOSING OF A FIVEYEAR TERM LOAN WITH HEALTHVEST'S LENDERS AND ON FINAL APPROVAL OF THE COMPANY'S SETTLEMENT WITH THE INTERNAL REVENUE SERVICE HEALTHVEST SAID BOTH CONDITIONS ARE EXPECTED TO BE MET BY THE DEC 31 CLOSING 9310290149 931029 FOREIGN EXCHANGE PROFITTAKING SINKS THE DOLLAR ERASING GAINS FROM BULLISH US ECONOMIC DATA BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR SANK THURSDAY AFTER A LATE ROUND OF PROFITTAKING ERASED EARLIER GAINS STEMMING FROM AN UPBEAT US ECONOMIC REPORT LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16749 MARKS DOWN FROM 16795 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10816 YEN DOWN FROM 10872 YEN STERLING WAS TRADING AT 14880 UP FROM 14805 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10820 YEN AND AT 16718 MARKS EARLY IN NORTH AMERICAN TRADING A BULLISH REPORT ON THIRDQUARTER US GROSS DOMESTIC PRODUCT OR THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED SENT THE DOLLAR SHARPLY HIGHER AGAINST THE MARK BUT AFTER THE DOLLAR HAD CLIMBED ABOUT A PFENNIG PLAYERS BEGAN TO SENSE THAT IT WAS RUNNING OUT OF STEAM AND THEY MOVED TO GET OUT THAT BROUGHT A WAVE OF DOLLAR SALES WHICH PICKED UP STRENGTH AS OTHER PLAYERS SAW THE TREND WHEN THE TRADING SETTLED THE DOLLAR WAS TWO PFENNIGS BELOW ITS INTRADAY HIGH WE JUST SAW TOO MANY PEOPLE MOVING THE SAME WAY AT THE SAME TIME SAID STEVEN GEOVANIS MANAGING DIRECTOR OF FOREIGN CURRENCY TRADING AT MERRILL LYNCH & CO PEOPLE WERE RUSHING TO GET OUT OF THE DOLLAR SAID SIMON FISCHER ASSOCIATE DIRECTOR OF FOREIGN EXCHANGE AT SWISS BANK CORP IN NEW YORK HE ADDED THAT MUCH OF THE PROFITTAKING EMERGED AFTER THE DOLLAR FAILED TO PIERCE AN IMPORTANT TECHNICAL LEVEL AT AROUND 16920 MARKS A REGION WHERE MANY PLAYERS HAD PRESET ORDERS TO SELL BUT DESPITE THURSDAY'S LATE SLIDE TRADERS AND ANALYSTS AGREED THAT THE US GDP REPORT GAVE A FAIRLY IMPRESSIVE PICTURE OF THE US ECONOMY INDICATING THAT FURTHER DOLLAR GAINS ARE LIKELY THE COMMERCE DEPARTMENT REPORTED THAT THE GDP FOR THE US ROSE AT A YEARTOYEAR PACE OF 28 IN THE THIRD QUARTER OUTSTRIPPING THE SECOND QUARTER'S 19 RISE THE FIGURES ALSO TOPPED THE 26 INCREASE EXPECTED BY ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT THE GDP FIGURE WAS PRETTY ENCOURAGING SAID SUNG WON SOHN CHIEF ECONOMIST AT NORWEST BANK CORP IN MINNEAPOLIS FINAL DEMAND HAS BEEN GROWING AT A PRETTY STEADY PACE HE SAID THE REPORT SHOWED THAT FINAL SALES ADJUSTED FOR INFLATION ROSE AT A RATE OF 33 IN THE THIRD QUARTER A LITTLE FASTER THAN THE SECOND QUARTER'S 32 INCREASE GIVEN THE COMMERCE DEPARTMENT'S STATEMENT THAT THE SUMMER'S FLOODING IN THE MIDWEST AND DROUGHT IN THE SOUTHEAST HAD TRIMMED ABOUT 06 FROM GDP GROWTH ANALYSTS SAID THE REPORT LOOKED EVEN BETTER IT WAS A GOOD REPORT SAID RANDOLPH L DONNEY RESEARCH DIRECTOR AT PEGASUS ECONOMETRIC GROUP IN NEW YORK AND IF YOU PUT THAT 06 ON TOP OF IT IT LOOKS PRETTY STRONG 9310290148 931029 LEISURE & ARTS BOOKSHELF HERSELF' ON THE IMPORTANCE OF BEING MAGGIE BY WILLIAM REES POLITICAL MEMOIRS CAN BE HEAVY GOING ALTHOUGH MARGARET THATCHER'S THE DOWNING STREET YEARS HARPERCOLLINS 30 IS MORE THAN 900 PAGES IT IS ENJOYABLE TO READ THIS IS NOT BECAUSE OF THE CRITICAL COMMENTS ON HER COLLEAGUES THOUGH SOME OF THESE ARE ENTERTAINING I RELISHED HER DRY COMMENT ON SIR IAN GILMOUR A CRITIC SHE DISMISSED FROM HER CABINET SUBSEQUENTLY HE WAS TO SHOW ME THE SAME LOYALTY FROM THE BACKBENCHES AS HE HAD IN GOVERNMENT THE MEMOIRS ARE READABLE BECAUSE THEY PROCEED FROM CRISIS TO CRISIS LIKE ONE OF THOSE NOVELS THAT PUBLISHERS REFER TO AS PAGE TURNERS THEY ARE ALSO ATTRACTIVE IN STYLE MRS THATCHER HAS UNDOUBTEDLY BEEN ASSISTED BY SKILLFUL WORDSMITHS BUT HER PERSONALITY IS EMPHATIC ON EVERY PAGE MRS THATCHER WAS SURPRISINGLY THE ONLY MAJOR 20THCENTURY BRITISH CONSERVATIVE PARTY PRIME MINISTER WHO ACTUALLY HELD STRONGLY CONSERVATIVE VIEWS SHE WAS ALSO THAT UNUSUAL THING A CONTRARIAN IN OFFICE SHE CAME TO POWER IN 1979 CONVINCED THAT THE ESTABLISHED WISDOM BY WHICH BRITAIN HAD BEEN GOVERNED WAS WRONG NOT JUST IN ONE PARTICULAR BUT IN ALMOST ALL ITS MAJOR THEMES SHE HAD THE GOOD FORTUNE TO BE JOINED BY ANOTHER CONTRARIAN RONALD REAGAN WHEN HE CAME TO OFFICE IN 1981 SHE WAS OPPOSED TO INTERVENTIONISM BUREAUCRACY HIGH TAXATION REGULATION STATE OWNERSHIP INFLATIONARY FINANCE TRADEUNION POWER KEYNESIAN ECONOMICS THE DEPENDENCY SYSTEMS OF WELFARE STATE PLANNING CONTROLS AND SUBSIDIES YET THESE CONSTITUTED THE BRITISH SYSTEM OF THE POSTWAR PERIOD IN FOREIGN POLICY SHE WAS OPPOSED TO COMMUNISM AND TOUGH IN ASSERTING BRITISH NATIONAL INTERESTS SHE EXPECTED OTHER NATIONAL LEADERS TO ASSERT THEIRS THIS WAS NOT MERE RHETORIC SHE HAD A FIGHTING DETERMINATION TO MAKE CHANGES AND ENJOYED THE BATTLES SOME LIKE HER STRUGGLE WITH HER OWN CABINET TO INTRODUCE A MORE RADICAL ECONOMIC POLICY TURNED ON PERSUADING HER SUPPORTERS AND DISMISSING THOSE WHO COULD NOT BE PERSUADED OTHERS LIKE THE FALKLANDS WAR OR THE MINERS' STRIKE WERE UNAVOIDABLE CONFLICTS WITH DETERMINED ENEMIES MRS THATCHER EMERGES FROM HER MEMOIRS AS A SURPRISINGLY STRAIGHTFORWARD PERSON THE PEOPLE SHE LIKED AND TRUSTED LIKE MR REAGAN SHE WENT ON LIKING AND TRUSTING SHE DID NOT ALWAYS SEE HOW DEVIOUS THE POLICIES OF OTHER POLITICIANS MIG END BROUGHT DOWN BY THE RESIGNATIONS OF TWO OF HER CLOSE COLLEAGUES NIGEL LAWSON AND GEOFFREY HOWE AND BY THE MANEUVERS OF TWO SENIOR FRENCH SOCIALISTS JACQUES DELORS THE PRESIDENT OF THE EUROPEAN COMMISSION AND FRANCOIS MITTERRAND THE PRESIDENT OF FRANCE MR LAWSON'S RESIGNATION AN EERILY FOOLISH ACTION OF AN ABLE MAN SURPRISED EVERYBODY THE FRENCH MANEUVERS WOULD HAVE BEEN FORESEEN BY A MORE CRAFTY POLITICIAN YET A MORE CUNNING POLITICIAN WOULD NOT HAVE ACHIEVED A QUARTER OF THE REFORMS MRS THATCHER PUSHED THROUGH IN BRITAIN EARLY IN 1985 MRS THATCHER MADE THE KEY MISTAKE THAT WAS TO LEAD TO HER EXIT FROM OFFICE IN THE AUTUMN OF 1990 EVEN NOW SHE RECORDS IT AS THOUGH ONLY HALF UNDERSTANDING WHAT A FATAL MISTAKE IT WAS AT THE BRUSSELS COUNCIL OF THE EUROPEAN COMMUNITY SHE AGREED TO THE APPOINTMENT OF MR DELORS AS PRESIDENT OF THE COMMISSION HE WAS TO BE HER NEMESIS THE COMBINATION OF THE DIRIGISTE MR DELORS AND THE LEFTWING PRESIDENT MITTERRAND A FAR MORE HOSTILE FIGURE THAN MRS THATCHER SEEMS TO HAVE REALIZED PROVED VERY DANGEROUS THEY PLANNED TO CREATE A FEDERAL EUROPE UNDER FRENCH INFLUENCE THE TRAP WAS LAID AT THE 1990 ROME SUMMIT WITH SKILLFUL SUPPORT FROM NOWDISCREDITED ITALIAN MINISTERS THE ISSUE ON WHICH MRS THATCHER WAS ISOLATED WAS THE SINGLE EUROPEAN CURRENCY ABOUT WHICH HER OPPOSITION NOW SEEMS CLEARLY TO HAVE BEEN RIGHT THAT DRAMATIC ISOLATION LED TO THE RESIGNATION OF HER DEPUTY PRIME MINISTER MR HOWE WHO SUPPORTED A SINGLE CURRENCY AND TO MICHAEL HESELTINE'S DECISION TO RUN AGAINST HER WITH THE AID OF SYMPATHIZERS IN THE THATCHER CABINET THEY WERE ABLE TO DEFEAT HER AND PERSUADED HER SUCCESSOR JOHN MAJOR TO SIGN THE MAASTRICHT TREATY DESIGNED TO CREATE THE EUROPE THEY WANTED OF COURSE TODAY THEIR FEDERAL EUROPE IS LOOKING LIKE A MIRAGE ALMOST ALL POLITICAL MEMOIRS END ON A SAD NOTE MRS THATCHER IN THE '80S TOOK BRITAIN FROM BEING THE SICKEST ECONOMY OF A RELATIVELY HEALTHY EUROPE TO BEING A RELATIVELY HEALTHY ECONOMY IN A SICKENING EUROPE SHE THEN SAW SOME OF HER ACHIEVEMENT REVERSED SHE HAS SEEN BRITISH CONSERVATISM LIKE AMERICAN CONSERVATISM IN THE BUSH YEARS PUT BACK INTO NEUTRAL GEAR IN HER RETIREMENT SHE STILL REPRESENTS THE CONSERVATIVE PRINCIPLES SHE HELD IN OFFICE BUT SHE IS A VOICE THOUGH SOMETIMES A THREATENING ONE AND NOT A POWER MRS THATCHER'S REVOLUTION HAD AN IMPACT NOT ONLY ON BRITAIN BUT ON THE REST OF THE WORLD AND IT WAS A REVOLUTION OF IDEAS ALONG WITH WINSTON CHURCHILL AND LLOYD GEORGE SHE IS ONE OF THE THREE INTERNATIONALLY INFLUENTIAL BRITISH PRIME MINISTERS OF THE 20TH CENTURY LORD REESMOGG FORMER EDITOR OF THE TIMES OF LONDON IS A COLUMNIST FOR THAT NEWSPAPER 9310290147 931029 ECONOMY STRONGER DATA LEAD MANY ECONOMISTS TO LIFT FORECASTS OF 4THPERIOD GROWTH BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL STRONGER ECONOMIC DATA ARE LEADING MANY ECONOMISTS TO INCREASE THEIR ESTIMATES FOR FOURTHQUARTER GROWTH ALTHOUGH THEY AREN'T YET AS OPTIMISTIC ABOUT NEXT YEAR THIS MONDAY WHEN ROBERT EGGERT BEGINS POLLING 50 OR SO ECONOMISTS FOR HIS MONTHLY BLUE CHIP ECONOMIC INDICATOR FORECAST HE EXPECTS THEY WILL INCREASE THEIR ESTIMATE OF THE FOURTH QUARTER'S ANNUALIZED RATE OF GROWTH TO 31 TO 32 FROM THE CURRENT 3 HIS OWN ESTIMATE WILL BE RAISED TO 32 HE SAID BUT HE SAID I'M WORRIED ABOUT LOW LEVELS OF CONSUMER AND BUSINESS CONFIDENCE THAT AND OTHER CONCERNS WILL KEEP HIM AND HE EXPECTS THE REST OF HIS GROUP FROM CHANGING LAST MONTH'S CONSENSUS OF 27 GROWTH FOR NEXT YEAR MR EGGERT ADDED ECONOMISTS WHO ARE MORE BULLISH FOR NEXT YEAR HOWEVER SAID YESTERDAY'S REPORT OF 28 ANNUAL GROWTH IN THE THIRD QUARTER AS WELL AS RECENT AUTO HOME SALES AND RETAILING REPORTS MEANS THE ECONOMY HAS MOMENTUM THAT WILL GROW STRONGER EVEN SOME OF THE MOST PESSIMISTIC ECONOMISTS WERE CONCEDING THAT NEXT YEAR NO LONGER LOOKS AS BLEAK I'M IN THE PROCESS OF UPDATING MY FORECAST SAID IRWIN KELLNER CHIEF ECONOMIST OF CHEMICAL BANKING CORP NOW INSTEAD OF 1 GROWTH ABOVE INFLATION NEXT YEAR HE EXPECTS 17 WHILE HE STILL EXPECTS THE TAX INCREASE NEXT YEAR WILL BE A HINDRANCE TO GROWTH HE NO LONGER SEES IT CUTTING GROWTH TO ZERO DURING THE FIRST HALF AS HE DID SEVERAL MONTHS AGO THERE WILL BE SOME OFFSET FROM LOWER INTEREST RATES HE SAID MICHAEL EVANS OF EVANS GROUP ALSO PENCILED IN A NEW ESTIMATE FOR NEXT YEAR AFTER YESTERDAY'S ECONOMIC REPORT WAS SLIGHTLY STRONGER THAN EXPECTED HE TOLD CLIENTS HIS ESTIMATE FOR FOURTHQUARTER GROWTH IS NOW 4 INSTEAD OF 35 BUT HE REMAINS CAUTIOUS ABOUT NEXT YEAR RAISING HIS ESTIMATE OF GROWTH ABOVE INFLATION TO 2 FROM 15 HIS CONCERN RISING INFLATION FROM A LOT OF LITTLE THINGS ADDING UP SUCH AS HIGHER TAXES ON GASOLINE AND CIGARETTES AND RISING FOOD PRICES BECAUSE OF THE RECENT FLOODS ECONOMISTS FROM BOTH CAMPS NOTED THE IRONY OF CONTINUED LOW CONSUMERCONFIDENCE READINGS WHILE CONSUMER SPENDING REMAINS HIGH THEY AGREED OUTLAYS ARE EVEN BETTER THAN EXPECTED BECAUSE OF EXTRA SPENDING CASH FROM LOW INTEREST RATES ON MORTGAGES AND OTHER DEBT EVEN CAR SALES ARE HIGHER BECAUSE LOW RATES MAKE LEASES AS WELL AS OUTRIGHT PURCHASES MORE AFFORDABLE THEY ADDED WHEN CONSUMERS THINK ABOUT THE FUTURE THEY GET GLOOMY BUT THEY FEEL GOOD ABOUT THEIR CURRENT PAYCHECK AND ARE WILLING TO SPEND MONEY SAYS MICHAEL COSGROVE OF ECONOCLAST INC BUT THE ECONOMISTS PART COMPANY OVER THE OUTLOOK FOR CONSUMER SPENDING AS WELL AS BUSINESS INVESTMENT IN COMPUTERS AND OTHER LABORSAVING EQUIPMENT THE OTHER ENGINE OF THIS YEAR'S ECONOMY MICHAEL KERAN CHIEF ECONOMIST OF PRUDENTIAL INSURANCE COMPANY AGREES THE REST OF THIS YEAR LOOKS FINE BUT HE IS A LITTLE BEARISH NEXT YEAR THAT'S BECAUSE WE'VE HAD A LARGE CAPITAL SPENDING INVESTMENT BOOM FOR TWO YEARS THAT WON'T BE IN DOUBLEDIGIT GROWTH IN 1994 INSTEAD OF INCREASING AT DOUBLEDIGIT PACE IT WILL SLOW TO 5TO6 WHICH IS QUITE A HIT IN GROWTHRATE TERMS HE SAID DAVID MUNRO OF HIGH FREQUENCY ECONOMICS ON THE OTHER HAND LIKES WHAT HE SEES IN CAPITAL SPENDING HE BELIEVES THE 5TO9 ANNUAL GROWTH RATE EXPECTED IN CAPITAL SPENDING FOR JOBSAVING EQUIPMENT WILL CONTINUE TO LEAD THE SYSTEM FORWARD THOSE WHO BELIEVE CONSUMER SPENDING FOR AUTOS TELEVISIONS FURNITURE AND THE LIKE WILL REMAIN HIGH DO NOT EXPECT THE TAX INCREASE ON THE WEALTHY WILL SLOW THINGS DOWN MUCH NOR DO THEY SEE INTEREST RATES RISING TO TAKE CASH AWAY MOST ECONOMISTS WHO WERE ALREADY BULLISH FELT THE LATEST ECONOMIC SIGNS SHOW THEY ARE ON THE RIGHT TRACK GAIL FOSLER OF THE CONFERENCE BOARD SAID SHE CONTINUES TO LOOK FOR 3TO35 GROWTH NEXT YEAR BECAUSE ALL PARTS OF THE ECONOMY ARE MOVING IN THE RIGHT DIRECTION FOR THE FIRST TIME IN A LONG TIME IT IS UNLIKE THE END OF LAST YEAR WHEN THE 45 ANNUAL GROWTH HAD EXCESSES THAT WOULD LEAD A PRUDENT PERSON TO EXPECT A DOWNTURN NEXT YEAR SHE PREDICTED WOULD BE THE BEST YEAR SINCE 1988 ALSO LOOKING FOR BETTERTHAN3 GROWTH NEXT YEAR IS MICHAEL LEVY OF NATIONSBANK CORP HE EXPECTS 35 GROWTH BECAUSE AMONG OTHER THINGS INVENTORY LEVELS HAVE BEEN LOW FOR THE PAST TWO QUARTERS AND THE CURRENT LEVEL OF ECONOMIC GROWTH DICTATES THERE WILL BE A PICKUP ALSO THE INFLATION REPORT IN YESTERDAY'S GROSSDOMESTICPRODUCT DATA WAS VERY GOOD HE SAID THAT IN TURN SHOULD KEEP INTEREST RATES LOW A SITUATION THAT WILL MITIGATE THE IMPACT OF HIGHER TAXES OTHER ECONOMISTS WITH MOREMODEST GROWTH EXPECTATIONS WERE ALSO ENCOURAGED EDWARD YARDENI OF CJ LAWRENCE DEUTSCHE BANK SECURITIES SAID HE IS LOOKING FOR 25 ANNUAL GROWTH THROUGH THE END OF NEXT YEAR BUT CALLED YESTERDAY'S REPORT THE BEST OF ALL WORLDS ESPECIALLY BECAUSE OF THE LOW ANNUAL INFLATION RATE OF 2 EVEN IF THE ECONOMY DOES BETTER THAN HE EXPECTS HE SAID LOW INFLATION SHOULD PERSIST BECAUSE MORE GOODS ARE BEING PRODUCED BY RECENTLY INTRODUCED LABORSAVING EQUIPMENT 9310290146 931029 SENATE PANEL CLEARS TRAVEL TAX INCREASE TO HELP FUND NAFTA WASHINGTON THE SENATE FINANCE COMMITTEE TENTATIVELY CLEARED CLINTON'S PLAN TO RAISE US AIRLINE AND CRUISE TRAVEL FEES TO 650 TO HELP PAY FOR THE NORTH AMERICAN FREE TRADE AGREEMENT THE TRAVEL TAX INCREASE WHICH IS SUBJECT TO CHANGE AS HOUSE AND SENATE MEMBERS NEGOTIATE NAFTA LEGISLATION HAS BEEN AN ISSUE OF DEBATE AMONG HOUSE REPUBLICANS THE ADMINISTRATION IS GAMBLING THE INCREASE WON'T COST IT CRUCIAL VOTES WHEN THE TRADE AGREEMENT COMES BEFORE THE CHAMBER UNDER THE PLAN THE ADMINISTRATION WOULD INCREASE BY 150 THE CURRENT 5 TAX ASSESSED MOST ARRIVING INTERNATIONAL AIR AND CRUISE PASSENGERS TO HELP PAY FOR CUSTOMS INSPECTIONS THE ADMINISTRATION ORIGINALLY HAD PLANNED TO DOUBLE THE TRAVEL TAX AS WELL AS INCREASE TRUCK AND RAIL CUSTOMS FEES BUT SCALED BACK THE PROPOSAL UNDER HEAVY CRITICISM BY VOICE VOTE THE COMMITTEE TENTATIVELY APPROVED THE FEES AND OTHER CHANGES THAT WOULD RAISE ABOUT 28 BILLION OVER THE NEXT FIVE YEARS THE HOUSE WAYS AND MEANS COMMITTEE ALREADY HAS CLEARED THE PLAN BOTH SIDES WILL NOW IRON OUT THEIR DIFFERENCES IN CONFERENCE MEETINGS THE ADMINISTRATION WILL USE THE CONGRESSIONAL DRAFT AS A MODEL FOR THE NAFTA LEGISLATION IT IS EXPECTED TO INTRODUCE NEXT WEEK 9310290145 931029 WHO'S NEWS NATIONSBANK NAMES LEWIS TO BE PRESIDENT MOVE PUTS THE EXECUTIVE IN POSITION TO SUCCEED CHAIRMAN CEO MCCOLL BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL NATIONSBANK CORP SAID KENNETH D LEWIS WAS NAMED PRESIDENT PUTTING HIM IN PLACE TO SUCCEED HUGH L MCCOLL JR AS CHAIRMAN AND CHIEF EXECUTIVE OF THE BANK HOLDING COMPANY MR MCCOLL AGE 58 WHO HAD HELD THE TITLE OF PRESIDENT HASN'T INDICATED HE WILL STEP DOWN SOON BUT THE MOVE CONFIRMED THE BELIEF AMONG INDUSTRY OBSERVERS THAT MR LEWIS WHO WILL REMAIN PRESIDENT OF THE COMPANY'S GENERAL BANK IS NEXT IN LINE TO HEAD NATIONSBANK THE GENERAL BANK INCLUDES OPERATIONS AT 1800 BRANCHES AND ACCOUNTS FOR THE MAJORITY OF NATIONSBANK'S REVENUE KEN LEWIS HAS BEEN CONSIDERED THE HEIR APPARENT FOR SOME TIME AND THIS REINFORCES THAT SAID KATHRYN BISSETTE AN ANALYST WITH STERNE AGEE & LEACH INC IN ATLANTA BASED IN CHARLOTTE NC NATIONSBANK IS THE THIRDLARGEST BANK IN THE US WITH 156 BILLION IN ASSETS MR LEWIS 46 IS ONE OF SEVERAL NATIONSBANK EXECUTIVES WITH NEW ASSIGNMENTS JAMES H HANCE 49 CHIEF FINANCIAL OFFICER AND JAMES W THOMPSON 54 CHAIRMAN OF NATIONSBANK EAST WERE EACH GIVEN THE TITLE OF VICE CHAIRMAN THOUGH EACH WILL RETAIN HIS CURRENT TITLE MR HANCE GAINS RESPONSIBILITY FOR THREE SUBSIDIARIES NATIONSBANC SERVICES CO NATIONSCREDIT AND NATIONS FINANCIAL CAPITAL CORP MR THOMPSON WILL SUPERVISE THE INSTITUTIONAL GROUP AND CORPORATE PROPERTIES IN ADDITION HUGH M CHAPMAN CHAIRMAN OF NATIONSBANK SOUTH WILL BEGIN SUPERVISING NATIONSBANK'S REGULATORY AND GOVERNMENTALAFFAIRS ACTIVITIES AND FREDRIC J FIGGE CHAIRMAN OF THE CREDIT POLICY COMMITTEE WAS NAMED CHAIRMAN OF CORPORATE RISK POLICY MR LEWIS CAME TO THE COMPANY THEN CALLED NORTH CAROLINA NATIONAL BANK AS A CREDIT ANALYST IN 1969 AND HAS RISEN THROUGH NUMEROUS POSITIONS IN SEVERAL DIFFERENT DEPARTMENTS AND CITIES HE ESTABLISHED HIMSELF AS ONE OF THE BRIGHTER LIGHTS AT THE COMPANY BY TURNING AROUND THE BANK'S AILING FLORIDA OPERATION FROM 1986 TO 1988 IN THAT TIME ASSETS IN FLORIDA GREW TO 96 BILLION FROM 73 BILLION AFTER THE FLORIDA ASSIGNMENT MR LEWIS HEADED NATIONSBANK'S TEXAS UNIT THE FORMER FIRST REPUBLICBANK HE BECAME PRESIDENT OF THE GENERAL BANK IN 1990 STATIONED IN ATLANTA SINCE THEN MR LEWIS WILL SOON MOVE TO CHARLOTTE THE COMPANY SAID NEITHER MR LEWIS NOR MR MCCOLL COULD BE REACHED TO COMMENT IN RECENT YEARS MR MCCOLL HAS ESTABLISHED HIMSELF AS A MAVERICK IN BANKING CIRCLES FUELED BY THE CHIEF EXECUTIVE'S HARDCHARGING PERSONALITY NATIONSBANK HAS GROWN FROM A REGIONAL BANK INTO A NATIONAL FINANCIAL CONCERN MR MCCOLL HAS CHAMPIONED INTERSTATE BANKING AND BRANCHING AND NATIONSBANK IS A LEADER IN THE INDUSTRY'S MOVE TO DIVERSIFY INTO NONTRADITIONAL BANKING SERVICES SUCH AS SECURITIES DERIVATIVES AND MUTUAL FUNDS WHEN MR MCCOLL RETIRES MR LEWIS IS EXPECTED TO BRING A MORE LOWKEY PERSONALITY TO THE TOP OFFICE HE HAS A DIFFERENT STYLE MS BISSETTE SAID KEN LEWIS COMES ACROSS AS MORE EVENKEELED 9310290144 931029 REVIEW & OUTLOOK EDITORIAL FRENCH FLOUNDER FRANCE IS LOOKING LIKE A COUNTRY WHOSE PROBLEMS ARE BEYOND ORDINARY POLITICS THE MOST RECENT EXHIBIT IS THE BALLADUR GOVERNMENT'S FLIPFLOP ON STATEOWNED AIR FRANCE WHEN THE ALLEGEDLY CONSERVATIVE GOVERNMENT OF EDOUARD BALLADUR CAME TO OFFICE AIR FRANCE CHAIRMAN BERNARD ATTALI WAS ASKED TO INSTITUTE COSTCUTTING MEASURES TO BRING THE CARRIER BACK TO SOME LEVEL OF STABILITY IN THE RUNUP TO PRIVATIZATION IT IS PROJECTED TO LOSE 1 BILLION THIS YEAR THEN CAME THE RECENT MOB VIOLENCE ON PARISIAN RUNWAYS POLITICAL TEMPERATURES ROSE MR BALLADUR'S POPULARITY WENT DOWN AND THE BALLADUR GOVERNMENT CAVED ABANDONED BY HIS EMPLOYER MR ATTALI RESIGNED THE LARGER ISSUE HERE IS WHETHER FRANCE IS GOING TO ENTER THE 21ST CENTURY WITH A FLEXIBLE ECONOMY OR WITH ONE IN WHICH MOBS HOLD VETO POWER OVER ECONOMIC AND BUSINESS DECISIONS ALL AROUND EUROPE GOVERNMENTS ARE TAKING MEASURES TO REDUCE BURDENS ON THE PUBLIC PURSE AND TO ENCOURAGE WORKPLACE FLEXIBILITY BUT FRENCH DEBATE SOMETIMES SEEMS TO BE OFF ON ANOTHER PLANET A RECENT MCKINSEY PRODUCTIVITY STUDY UNDERLINES THAT THE INDUSTRIES THAT WORK BEST ARE THOSE THAT FACE THE FULL CHALLENGE OF GLOBAL COMPETITION YET IN FRANCE THERE ARE MANY WHO SEEM TO FEEL THAT THIS GLOBAL MARKETPLACE IS SOMEHOW UNFRENCH AND SHOULD BE KEPT AT BAY THERE IS A TENDENCY AMONG SOME FRENCH POLITICIANS TO ATTACH MORAL JUDGMENTS TO THE MOST PRACTICAL BUSINESS PRACTICES THUS THE FACT THAT BRITISH AIRWAYS FACES LOWER TAX BILLS THAN AIR FRANCE IS TAKEN AS A SIGN OF UNFAIR COMPETITION SOMETIMES THIS TRAIN OF THINKING HARKENS BACK TO MEDIEVAL NOTIONS OF JUST WAGES AND THE LIKE IT IS NOW TIME TO INVENT LE POINT EDITOR CLAUDE IMBERT WROTE RECENTLY ALONG THE LINES OF THE ANGLOSAXON MODEL A CIVIC MORALITY WHERE MONEY WILL BE UNDER THE CLOSE SURVEILLANCE OF THE LAW MAYBE FRANCE WILL BE ABLE TO INVENT A STYLE OF ECONOMICS THAT GIVES MEANING TO SUCH OTHERWORLDLY EUPHEMISMS MAYBE FRANCE WILL BE ABLE TO INVENT AN ECONOMIC MODEL THAT THRIVES WITHOUT COMPETITION WHERE THERE IS JOB CREATION WITHOUT JOB DESTRUCTION PROFIT WITHOUT LOSS WHERE STATE SUPPORT FOR INEFFICIENCY WILL FOSTER EFFICIENCY 9310290143 931029 THAI RESTAURANT HAS NOVEL SELLING POINT REVENGE ON SNAKES CROCODILES OTHER SCARY BEASTS ARE SERVED UP IN A CUISINE BASED ON LAW OF THE JUNGLE BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL CHIANG MAI THAILAND IT'S REVENGE FOR THE HUMANS EVERY DAY AT KAITHONG RESTAURANT DECLARES THE RESTAURANT'S BROCHURE REVENGE AGAINST WHAT COBRA PYTHON CROCODILE AND OTHER MENACES TO MAN THAT THE RESTAURANT KILLS ON THE SPOT AND SERVES UP TO CUSTOMERS EAGER TO SINK THEIR FANGS INTO SCARY FARE IN THE HEART OF THE URBAN JUNGLE OF THIS NORTHERN THAI CITY KAITHONG RESTAURANT TOUTS ITSELF AS A PURVEYOR OF AUTHENTIC JUNGLE FOOD ONCE INSIDE THE OPENAIR ENCLOSURE CUSTOMERS CAN SELECT THE REPTILES THEY THINK WILL TICKLE THEIR TASTE BUDS THE MOST SNAKES SLITHER IN CAGES CROCODILES LANGUISH IN A PEN GUTTED AND FILLETED THE BEASTS MEET VARYING FATES FRIED GRILLED OR A LA FRANCAISE WITH MUSTARD SAUCE FOR THE FAMISHED THERE'S THE HOUSE FAVORITE A MIXED JUNGLE STEAK OF THREE MEATS COBRA PYTHON AND CROC WITH A HEAP OF STEAMING CORKSCREWSHAPED BAMBOO WORMS ON THE SIDE THE MENU ALSO LISTS MOUNTAIN FROG GROUND LIZARD AND SOFTSHELLED TURTLE IN CURRY STEWED IN LEMONGRASS SOUP OR SIMPLY FRIED ON ONE RECENT DRIZZLY OFFSEASON EVENING THERE WERE NO PATRONS IN SIGHT BUT IN A MONTH SAYS MANAGER SAYAN UPHAPHAR BUSINESS WILL BE BRISK AS THE PEAK SEASON BEGINS AND TOURISTS FLOCK TO HIS RESTAURANT IN THEIR HUNGER FOR REVENGE SOME DAYS WE GET SO MANY PEOPLE THERE AREN'T ENOUGH SEATS HE SAYS MOST ARE AMERICANS EUROPEANS CHINESE AND JAPANESE ONLY 5 ARE THAIS HE NOTES THE THAIS HE SAYS LIKE THEIR COBRA LOCALSTYLE SIZZLING WITH GARLIC AND PEPPER THREE YEARS AGO WE HAD REGULAR THAI AND CHINESE FOOD MR SAYAN SAYS THEN THE OWNER WHO LOVES JUNGLE FOOD DECIDED TO SPECIALIZE IN THE JUNGLE CUISINE THAT CUISINE INCLUDES FOR EXAMPLE AN 825FOOTLONG COBRA WHICH WILL BE FED A BIRD A WEEK UNTIL ITS NUMBER IS UP FROM LATE OCTOBER UNTIL APRIL MR SAYAN TAKES DELIVERY OF TWO SNAKES EACH MORNING FROM A LOCAL FARMER TWO NEW CROCODILES ARRIVE EACH MONTH FROM A NEARBY FARM AS KAITHONG RESTAURANT SEES IT HUMANS LIKE TO GET EVEN WITH LONG LEGLESS VENOMOUS CREATURES BY EATING THEM BECAUSE THEY CLAIM SNAKES ARE HUMANS' ENEMIES WHICH KILL A LOT OF PEOPLE AND ARE ALSO POISONOUS AND HARMFUL OR SO THE BROCHURE SAYS BESIDES SNAKE CONSUMPTION HELPS INCREASE HUMANS' SEXUAL POWER AS ANY AFICIONADO OF ASIAN NUTRITIONAL LORE WILL TELL YOU REVENGE DOESN'T COME CHEAP A COBRA BIG ENOUGH TO FEED SIX HUNGRY TOURISTS COSTS THE EQUIVALENT OF 178 THE THREEINONE MEDLEY COSTS 31 AND THE CROCODILE STEAK FOR ONE 20 HARMLESS AMPHIBIANS CAN'T COMMAND SUCH PRICES FRESH MOUNTAIN FROG FRIED WITH GINGER IS JUST 8 PER ORDER TO ONE WARY AND USUALLY VEGETARIAN CUSTOMER THE PROFESSED BENEFITS OF REPTILES AS FOOD WEREN'T ENOUGH TO WARRANT A TASTE EVEN AFTER MR SAYAN'S ASSURANCES THAT COBRA TASTES JUST LIKE WHAT ELSE CHICKEN 9310290142 931029 REVIEW & OUTLOOK EDITORIAL YOU BET YOUR LIFE AS THE CLINTON HEALTH PLAN UNFOLDS WE SHOULD ALL BE ON THE LOOKOUT FOR LESSONS FROM OTHER COUNTRIES WITH A LONG HISTORY OF HAVING GOVERNMENTS RATHER THAN MARKETS RUN A HEALTH SYSTEM ONE THAT CAUGHT OUR EYE RECENTLY ON THE REUTER NEWS WIRE CAME OUT OF THE NETHERLANDS THE DUTCH SOCIALIZED HEALTHCARE SYSTEM IS SO DEEP IN RED INK THAT THE NETHERLANDS MINISTRY OF HEALTH IS FINANCING A TV GAME SHOW IN WHICH A STUDIO AUDIENCE VOTES ON WHICH OF TWO REALLIFE PATIENTS RECEIVES LIFESAVING MEDICAL CARE THE TV SHOW IS CALLED A MATTER OF LIFE AND DEATH LEST ANYONE THINK WE'RE MAKING THIS UP HERE IS THE TEXT OF THE FULL REUTER DISPATCH WITH HEADLINE AMSTERDAM NETHERLANDS REUTER IMAGINE A TELEVISION GAME SHOW IN WHICH A STUDIO AUDIENCE MUST DECIDE WHICH OF TWO PATIENTS SHOULD RECEIVE LIFESAVING MEDICAL TREATMENT TOO CONTROVERSIAL TO SCREEN NOT IN THE NETHERLANDS WHERE A SERIES CALLED A MATTER OF LIFE AND DEATH HAS BEEN CONFRONTING VIEWERS WITH EXACTLY THIS TYPE OF DILEMMA ORIGINALLY INTENDED TO STIMULATE DEBATE ON HOW TO CONTROL HEALTH SPENDING THE SERIES HAS TRIGGERED CRITICISM OF ITS UNORTHODOX APPROACH TO THE ISSUE THIS IS A REVOLTING PROGRAM IMPROPER AND ALMOST IMMORAL SAID FONS DEKKERS OF THE DUTCH PATIENTS' FEDERATION IN ONE RECENT EPISODE THE STUDIO AUDIENCE HAD TO CHOOSE BETWEEN TWO CANCER PATIENTS WHO BOTH WANTED TREATMENT WITH AN EXPENSIVE NEW DRUG WHICH COULD PROLONG THEIR LIVES VIEWERS WERE REMINDED SEVERAL TIMES THAT DOCTORS MAKE THE REAL DECISIONS ABOUT THE PATIENTS WHO VOLUNTEER TO TAKE PART BUT THAT HAS NOT DAMPENED CRITICISM OF THE SERIES WHICH WAS PARTIALLY FINANCED BY THE MINISTRY OF HEALTH YOU SHOULDN'T TREAT SUCH SERIOUS MATTERS IN A CARICATURE MANNER SAID THEO BERKESTIJN OF THE DUTCH MEDICAL ASSOCIATION CRITICS SAY THE SERIES HAS DONE MORE HARM THAN GOOD BY MISREPRESENTING THE COMPLEX ISSUE OF HOW BEST TO ALLOCATE FINITE HEALTH CARE RESOURCES AS A SIMPLE CHOICE BETWEEN TWO PATIENTS WE CAN SEE WHERE THE ETHIC OF THE ROMAN COLOSSEUM MIGHT OFFEND SOME SENSIBILITIES BUT IT ALSO STRIKES US AS ONE OF THE GREAT CONCEITS OF THE INTELLECTUAL AND CARING CLASSES THAT ONLY THEY CAN FIGURE OUT ALL THE COMPLEX DECISIONS AND EQUATIONS THAT INEVITABLY FLOW FROM THEIR INSTINCT TO SOMEHOW CONTROL THE ECONOMICS OF A GOOD SUCH AS MEDICINE THE FACT IS THAT WHATEVER CONSIDERATIONS MAY GO INTO CHOOSING CARE FOR ONE CANCER PATIENT OVER ANOTHER UNDER CONDITIONS OF FINITE RESOURCES WE SUSPECT THAT THE AVERAGE STUDIO TV AUDIENCE WOULD BRING AS MUCH COMMON SENSE TO PICKING THE WINNERS AS ANY TEAM OF DOCTORS OR GOVERNMENTPAID BUREAUCRATS 9310290141 931029 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN RESPONDING TO A STUDY THAT FOUND POTENTIAL SAFETY HAZARDS HONG KONG CHANGED LANDING PATTERNS AT KAI TAK AIRPORT THE WORLD'S FOURTHBUSIEST AND ONE OF THE SAFEST EVEN THOUGH IT HAS ONLY ONE RUNWAY FOR YEARS PLANES DEPARTING LATE AT NIGHT AND EARLY IN THE MORNING HAVE FLOWN TOWARD INCOMING AIRCRAFT IN A PATTERN ABOVE THE SEA DESIGNED TO REDUCE NOISE FOR 250000 KOWLOON DISTRICT RESIDENTS NOW THAT PRACTICE IS BANNED AND 113 FLIGHTS A WEEK WILL BE ROUTED OVER KOWLOON AVIATION REGULATORS COMMISSIONED THE SAFETY STUDY AFTER AIRPLANES FLEW TOO CLOSE TO EACH OTHER IN THREE INCIDENTS IN THIS YEAR'S FIRST HALF THAT COMPARED WITH BETWEEN ZERO AND TWO SUCH INCIDENTS ANNUALLY IN THE PREVIOUS 15 YEARS THOUGH PLANES WERE SEPARATED AT LEAST 1980 FEET OR DOUBLE THE INTERNATIONAL MINIMUM REQUIREMENT THE STUDY FOUND THE SYSTEM COULD COMPROMISE SAFETY ANNUAL TAKEOFFS AND LANDINGS AT KAI TAK HAVE MORE THAN DOUBLED IN THE PAST 10 YEARS TO 131000 AS HONG KONG HAS BECOME THE GATEWAY TO CHINA LAST YEAR THE AIRPORT SERVED 21 MILLION PASSENGERS BRITAIN'S HIGH COURT REJECTED A CLAIM OF REPETITIVE STRESS INJURY RULING THAT THIS ISN'T A DISEASE OR DIAGNOSIS AND IS THUS A MEDICALLY MEANINGLESS TERM THE PLAINTIFF RAFIQ MUGHAL 44 YEARS OLD HAD SOUGHT DAMAGES AND LOST EARNINGS FROM REUTER PLC'S NEWS AGENCY WHICH EMPLOYED HIM FROM 198789 THE JUDGE SAID THE REPORTER'S ARM AND SHOULDER PAINS WHICH DEVELOPED IN 1988 RESULTED FROM PERSONAL RATHER THAN WORKING CONDITIONS THE RULING WAS A SETBACK FOR WORKERS WITH PAINFUL HAND WRIST AND ARM AILMENTS THAT THEY BELIEVE ARE LINKED TO COMPUTER KEYBOARD USE TO SHORE UP RUSSIA'S PRIVATIZATION PROGRAM AND HELP BUILD ITS STOCK MARKETS PRESIDENT BORIS YELTSIN SIGNED A DECREE GUARANTEEING STOCKHOLDERS' RIGHTS SELLOFFS OF STATE ENTERPRISES ARE INCREASING THE NUMBER OF SHAREHOLDERS WEEKLY BUT STOCK MARKETS REMAIN EMBRYONIC THE DECREE REQUIRES ALL JOINTSTOCK COMPANIES TO CREATE SHAREHOLDER REGISTERS AND TO RECORD OWNERSHIP CHANGES WITHIN THREE DAYS WITHOUT SUCH RECORDS MANAGERS OF PRIVATIZED COMPANIES CAN KEEP EFFECTIVE CONTROL THE DECREE ALSO LAYS THE GROUNDWORK FOR COMPUTERIZED SHARE DEPOSITORIES TAIWAN BANNED AUTOS EQUIPPED WITH AIR CONDITIONERS USING CHLOROFLUOROCARBONS STARTING NEXT JULY 1 THE CHEMICAL IS BLAMED FOR DAMAGING THE EARTH'S OZONE LAYER TAIWAN'S REGULATION WILL APPLY TO ALL DOMESTICALLY MADE AND IMPORTED AUTOS AND TO NEW AND USED MODELS THE GOVERNMENT REJECTED AUTO MAKERS' REQUEST TO IMPOSE THE CFC BAN ON NEW MODELS ONLY BUT IT DID AGREE TO DELAY THE EFFECTIVE DATE FROM THE INITIAL PROPOSAL FOR NEXT JAN 1 GERMAN POLICE CLOSED AND THE GOVERNMENT REVOKED THE MANUFACTURING LICENSE OF A PHARMACEUTICAL FIRM THAT FAILED TO ENSURE ALL ITS BLOOD PRODUCTS WERE FREE OF HIV THE VIRUS THAT CAUSES AIDS AUTHORITIES WERE SEARCHING FOR PRODUCTS MADE BY UBPLASMA OF KOBLENZ TO DESTROY POTENTIALLY CONTAMINATED BLOOD DELIVERED TO 74 GERMAN HOSPITALS ONLY 2500 OF 7000 BATCHES WERE TESTED AND SOME DONORS TO UBPLASMA TESTED POSITIVE FOR HIV GERMANY IS CONDUCTING CRIMINAL PROBES IN A SCANDAL IN WHICH THE GOVERNMENT ADMITTED OFFICIALS COVERED UP CASES OF HIVTAINTED BLOOD THAT MAY HAVE CAUSED HEMOPHILIACS' DEATHS BELARUS DEVALUED ITS CURRENCY 27 AGAINST THE RUSSIAN RUBLE THE SECOND SUCH MOVE IN TWO WEEKS THE NEW EXCHANGE RATE WAS SET AT 41 BELARUSSIAN PAYMENT CERTIFICATES TO THE RUBLE ON OCT 14 THE BELARUS CENTRAL BANK DEVALUED THE FORMER SOVIET REPUBLIC'S CURRENCY 50 TO 3 PAYMENT CERTIFICATES PER RUBLE WORKERS AT MOST UNIONS ON STRIKE FOR 10 DAYS AGAINST AIR FRANCE VOTED TO RETURN TO THEIR JOBS AT LEAST TEMPORARILY BUT THE STATERUN AIRLINE SAID SERVICE WOULDN'T RETURN TO NORMAL UNTIL NEXT WEEK THE WALKOUT WOUND DOWN AFTER THE FRENCH GOVERNMENT WITHDREW A PLAN TO CUT 4000 JOBS BY 1995 AND AGREED TO PURSUE A COSTSAVING PROPOSAL WITH WORKER PARTICIPATION THE SOMETIMES VIOLENT STRIKE CRIPPLED OPERATIONS AT PARIS AIRPORTS SEPARATELY IN ROME THOUSANDS OF WORKERS LEFT THEIR POSTS FOR SEVERAL HOURS IN A GENERAL STRIKE THE SECOND THIS YEAR TO PRESS THE ITALIAN GOVERNMENT TO REDUCE UNEMPLOYMENT AND SAVE STATE JOBS FROM PRIVATIZATION THE CABINET MET TO FORM A STRATEGY TO HELP WORKERS HURT BY ITALY'S AUSTERITY PLAN AND EUROPE'S RECESSION IN GERMANY MEANWHILE AT LEAST 60000 BRICKLAYERS CARPENTERS AND MASONS MARCHED IN BONN PROTESTING PLANS TO REDUCE THEIR PAY FOR DAYS WHEN BAD WEATHER PREVENTS WORKING THIS ACCOUNTS FOR MORE THAN 10 OF ANNUAL WAGES THE DEMONSTRATION SIGNALED THE RESISTANCE THE GOVERNMENT FACES IN REINING IN GERMANY'S BUDGET DEFICIT BY CUTTING SOCIAL SPENDING TAIWAN'S STATE OIL MONOPOLY CUT PRICES AN AVERAGE OF 25 TO REFLECT LOWER IMPORT COSTS AND MAY ADJUST PRICES MONTHLY WITH PROSPERITY RISING IN HANOI THE MOTORBIKE IS SUPPLANTING THE BICYCLE AS KING OF THE ROAD BUT INTOLERANT OF A WAVE OF RECKLESS DRIVING VIETNAM'S CAPITAL GOT TOUGH FIRSTTIME OFFENDERS MAY HAVE THEIR VEHICLES CURBED FOR A MONTH AND BE FINED 200 A YEAR'S PAY A REPEAT OFFENDER FACES SEIZURE OF THE MOTORBIKE AND PROSECUTION 9310290140 931029 THE AMERICAS THE BANDITRY OF NICARAGUA'S FORMER THIEF EXECUTIVE BY STEPHEN SCHWARTZ MANAGUA NICARAGUA BEFORE THE 1979 REVOLUTION LA PERFECTA WAS ONE OF NICARAGUA'S LEADING FOOD COMPANIES FOUNDED IN THE 1950S BY ARMANDO LLANES A NICARAGUANBORN GRADUATE OF THE VIRGINIA POLYTECHNIC INSTITUTE ITS IMMACULATE MODERN PLANT PRODUCED PASTEURIZED MILK POWDERED MILK ICE CREAM AND CHEESE ITS BRAND DOMINATED THE MARKET WHILE ITS HISTORY AS A SUCCESSFUL BUSINESS VENTURE IS NOTEWORTHY LA PERFECTA'S CURSE IS THAT IT'S REMEMBERED MORE OFTEN FOR ITS POLITICAL HISTORY THAT HISTORY BEGAN ABOUT A DECADE AFTER ITS FOUNDING AND INVOLVED A YOUNG MAN NAMED DANIEL ORTEGA ACCORDING TO A 1979 MEMOIR BY HUMBERTO ORTEGA DANIEL'S BROTHER AND NICARAGUA'S CURRENT MILITARY CHIEF IN THE MID1960S THE SANDINISTA GUERRILLA MOVEMENT EMBARKED ON A SERIES OF SYSTEMATIC ARMED BLOWS AIMED AT ECONOMIC OBJECTIVES THE MOST SUCCESSFUL WERE THE ECONOMIC SEIZURES CARRIED OUT AT BRANCHES OF THE BANCO DE AMERICA AND BANCO DE LONDRES THE LACMIEL ICE CREAM COMPANY AND LA PERFECTA DAIRY AMONG OTHERS BUT THE LA PERFECTA RAID DANIEL'S FIRST WAS NOT A COMPLETE TRIUMPH AS LA PERFECTA'S CURRENT EMPLOYEES ARE ONLY TOO HAPPY TO RECOUNT TO VISITORS THE PLANT WORKERS RESISTED THE ATTEMPTED EXPROPRIATION AND BEAT UP THE GUERRILLAS INCLUDING DANIEL THE ENRAGED WORKERS EVEN KILLED ONE SANDINISTA SELIM SHIBLE IT IS EASY TO IMAGINE THE MARXIST CANT THAT MUST HAVE FLOWED FROM THE MOUTHS OF THE SANDINISTA LEADERS AND INTELLECTUALS ABOUT THE LOW CONSCIOUSNESS OF LA PERFECTA WORKERS FAR FROM AIDING THE REVOLUTIONARY CADRES IN THEIR THEFT THESE WORKERS DEFENDED THE ENTERPRISE THAT WAS RESPONSIBLE FOR THEIR LIVELIHOODS AFTER THE REVOLUTION THE SANDINISTAS GOT THEIR REVENGE THE USUAL PRETEXT FOR NATIONALIZATION WAS THAT THE OWNERS HAD SOME INVOLVEMENT IN POLITICS ESPECIALLY IN THE PARTY OF THE SOMOZA REGIME HOWEVER THE 1981 CONFISCATION OF LA PERFECTA LACKED EVEN THAT THIN PRETEXT FOR THE NEXT DECADE THE LLANES FAMILY LIVED IN EXILE IN MIAMI AIDING WHENEVER POSSIBLE THE ANTISANDINISTA CONTRAS BUT IN 1990 NICARAGUAN VOTERS OVERWHELMINGLY REJECTED DANIEL ORTEGA AND REPLACED HIM AS PRESIDENT WITH VIOLETA CHAMORRO WHOSE PARTISANS IN THE ANTISANDINISTA UNITED NICARAGUAN OPPOSITION DEMANDED THE RETURN OF SUCH CONFISCATED PROPERTIES THE LLANES FAMILY RETURNED FROM A DETAILED INVENTORY OF THEIR FACILITY WHILE PRESSING THEIR LEGAL CASE FOR RETURN OF ITS ASSETS ACCORDING TO FAMILY SCION JAVIER LLANES WHO NOW WORKS ON THE STAFF OF MANAGUA MAYOR ARNOLDO ALEMAN LACAYO A CONSERVATIVE CRITIC OF THE CHAMORRO ADMINISTRATION THE FAMILY'S INVENTORY REVEALED A SET OF FACTS THAT ELOQUENTLY SUMMARIZED THE ECONOMIC BANDITRY PRACTICED BY DANIEL ORTEGA'S GANG A TOPOFTHELINE MACHINE THAT FILLED CARTONS OF MILK AND ORANGE JUICE WAS SOLD BY THE SANDINISTAS TO A COSTA RICAN DAIRY NOW OWNED BY BORDEN'S A POWDERED MILK FACILITY OPENED AT THE PLANT IN 1978 WAS TRADED TO ANOTHER COSTA RICAN FIRM FOR A HERD OF UNDISTINGUISHED MILK COWS WITH A STATED VALUED OF 10000 A FLEET OF REFRIGERATED MILK TRUCKS DISAPPEARED FROM THE PLANT AND WAS REPUTED TO HAVE BEEN TAKEN TO CUBA THE COMPANY'S ICE CREAM PRODUCING EQUIPMENT WHICH WOULD COST 1 MILLION TO REPLACE WAS EITHER STOLEN PIECE BY PIECE OR DESTROYED IN ANY EVENT NONE OF THE EQUIPMENT REMAINED IN THE PLANT AS FOR THE FAMILY'S CLAIM TO THE DAIRY ONLY A SMALL PART OF THE OVERALL COMPLEX WAS RETURNED TO IT BY THE CHAMORRO GOVERNMENT MOREOVER THE TRANSFER TOOK PLACE WITH THE CONDITION THAT THE FAMILY ACCEPT A 400000 DEBT ON THE PROPERTY FURTHER EVIDENCE OF ECONOMIC PLUNDER BY THE SANDINISTAS WAS DISCOVERED AFTER RECOVERY OF THE PLANT A SANDINISTA POLITICIAN JOSE LEON TALAVERA CLAIMED THAT MR ORTEGA'S GOVERNMENT HAD INVESTED 2 MILLION IN LA PERFECTA BASED ON A FOREIGNAID PACKAGE DELIVERED TO THE SANDINISTAS BY THE FINNISH GOVERNMENT HOWEVER THE LLANES FAMILY DOCUMENTED AND INFORMED THE FINNS OF THE TRUTH THE MONEY HAD APPARENTLY DISAPPEARED WHILE WHAT REMAINED OF THE PLANT EQUIPMENT WAS REASSESSED AND OVERVALUED TO COVER THE ALLEGED MALFEASANCE THE LLANES FAMILY IS STILL COMMITTED TO DEFENDING ITS CLAIMS BUT LIKE OTHER DEFENDERS OF RISKY CAUSES FEELS SOMEWHAT BESIEGED MR TALAVERA WITH WHOM JAVIER LLANES BECAME INVOLVED IN A SECOND CONFLICT OVER THE FAMILY'S FORMER COUNTRY HOUSE WHICH WAS GIVEN TO MR TALAVERA BY THE SANDINISTA ARMY HAS THREATENED THE LLANES FAMILY LEADING TO THEIR HIRING OF SOME OF JAVIER'S FORMER CONTRA COMRADES AS HOUSE GUARDS THIS PRACTICE IS INCREASING AMONG THE BUSINESS CLASS AS THE COUNTRY'S 50 TO 70 UNEMPLOYMENT DRIVES MORE AND MORE PEOPLE INTO STREET CRIME LIKE MOST NICARAGUANS THE LLANES FAMILY IS DISILLUSIONED WITH MRS CHAMORRO'S ADMINISTRATION AND ESPECIALLY WITH HER FAILURE TO REMOVE THE CRIMINAL SANDINISTAS FROM THE OFFICIAL POSITIONS THEY CONTINUE TO OCCUPY IN THE ARMY FROM THE BANKS AND FROM NUMEROUS OTHER ENTERPRISES THAT THEY LIBERATED BEFORE LOSING POWER STILL IN JAVIER LLANES AND MANY OTHER MANAGUANS I ENCOUNTERED REAL PRIDE AT THE SMALL GAINS THAT HAVE BEEN MADE SINCE DANIEL ORTEGA WAS REMOVED FROM HIS POST THE CURRENCY HAS STABILIZED CONSUMER GOODS ARE AVAILABLE RESTAURANTS AND OTHER SMALL BUSINESSES ARE OPENING AND MANAGUA UNDER MAYOR ALEMAN LACAYO IS CLEANING ITSELF UP THE HORIZON REMAINS UNDENIABLY CLOUDED BY POLITICAL DIVISIONS AS WELL AS BY INCREASING VIOLENCE BUT IN MUCH OF ITS INNER BEING THE NICARAGUAN NATION HAS CHANGED REMARKABLY LITTLE FROM THE NIGHT IN THE MID1960S WHEN THE WORKERS OF LA PERFECTA DAIRY MET THE SANDINISTA ROBBERS WITH PHYSICAL RESISTANCE THE LLANES FAMILY SEEMS INTERESTED IN ONLY ONE THING GETTING THE BEST QUALITY FOOD PRODUCTS TO NICARAGUAN FAMILIES SOME NICARAGUAN WORKERS INCLUDING MANY AT LA PERFECTA EXPRESS LOYALTY TO THEIR FORMER BOSSES AND LOOK FORWARD AS MUCH AS THE ENTREPRENEURS TO THE REHABILITATION OF ECONOMIC RESOURCES THAT WERE DEGRADED IN THE MARXIST UTOPIA GEN HUMBERTO ORTEGA RECENTLY COMPLAINED THAT US AID FOR THE RECONSTRUCTION OF NICARAGUA HAS BEEN DISPENSED WITH AN EYEDROPPER BUT THE JUSTICE SOUGHT BY SUCH ORDINARY NICARAGUANS AS THE LLANES FAMILY THEIR EMPLOYEES AND CUSTOMERS AND BY OTHER VICTIMS OF DANIEL ORTEGA'S GANG OF REVOLUTIONARY THIEVES IS ALSO TASTED ONE DROP AT A TIME THE LLANES FAMILY AND MANY OTHERS WARN THEIR AMERICAN FRIENDS THAT ANY HELP FROM WASHINGTON SHOULD BE PROVIDED UNDER A STRICT CONDITION PROPERTY RIGHTS MUST BE RESPECTED AND PROPERTY CLAIMS RESOLVED MR SCHWARTZ IS THE AUTHOR OF A STRANGE SILENCE THE EMERGENCE OF DEMOCRACY IN NICARAGUA ICS PRESS 1992 9310290139 931029 BUSINESS BRIEF LA QUINTA INNS INC HOTEL OPERATOR PLANS TO BUY ENTIRE LA QUINTA PARTNERSHIP LA QUINTA INNS INC SAID IT PLANS TO BUY ALL OF THE PARTNERSHIP UNITS OF LA QUINTA MOTOR INNS LP THAT IT DOESN'T ALREADY OWN FOR 458 MILLION THE SAN ANTONIO TEXAS HOTEL OPERATOR SAID IT WILL PAY 13 PER UNIT IN CASH FOR THE REMAINING 3522300 UNITS THE PARTNERSHIP'S UNITS WERE AT 13 UP 1625 OR 14 IN NEW YORK STOCK EXCHANGE TRADING LA QUINTA ALREADY OWNS 452700 UNITS OR 114 OF LA QUINTA MOTOR INNS AND MANAGES THE PARTNERSHIP'S 31 HOTELS LA QUINTA NEXT WEEK WILL BEGIN A TENDER OFFER FOR UNITS OUTSTANDING UNITS NOT ACQUIRED IN THE TENDER OFFER WILL BE BOUGHT IN A MERGER BETWEEN THE HOTEL OPERATOR AND THE PARTNERSHIP LA QUINTA'S LA QUINTA REALTY CORP GENERAL PARTNER OF LA QUINTA MOTOR INNS APPROVED THE PROPOSAL AS DID BANC ONE CAPITAL CORP THE PARTNERSHIP'S FINANCIAL ADVISER 9310290138 931029 ECONOMY LOW RATES SPUR MODEST INCREASE IN GDP GROWTH THIRDQUARTER PACE OF 28 WASN'T BIG JOBS BOOST BUT KEPT PRICES DOWN BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LOW INTEREST RATES SEEM TO HAVE KICKED IN ACROSS THE BOARD TO HELP SPUR ECONOMIC GROWTH IN THE THIRD QUARTER BUT GROWTH IS STILL QUITE MODEST NOT LIKELY TO BRING MUCH NEW IN THE WAY OF JOB GROWTH BUT HELPING TO KEEP THE LID ON PRICE PRESSURES THE COMMERCE DEPARTMENT SAID GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US GREW AT A 28 ANNUAL RATE IN THE THIRD QUARTER AFTER A MORE MEAGER 19 GROWTH RATE IN THE SECOND PERIOD THE NEW FIGURE WILL BE REVISED TWICE IN THE COMING MONTHS MUCH OF THE GROWTH IN THE THIRD QUARTER CAME FROM SECTORS OF THE ECONOMY SENSITIVE TO INTEREST RATES CONSUMER PURCHASES OF DURABLE GOODS SUCH AS CARS BUSINESS INVESTMENT IN CAPITAL EQUIPMENT AND INVESTMENT IN THAT MOST STANDARD OF AMERICAN DREAMS A NEW HOME ALL OF THESE THINGS HAVE BECOME MORE AFFORDABLE WITH THE LOWEST LONGTERM RATES IN MORE THAN TWO DECADES ANALYSTS WERE ENCOURAGED BY THE GROWTH THOUGH THEY SAID THE ECONOMY IS STILL IMPROVING ONLY MODESTLY THE REAL BRIGHT SPOT IN THE REPORT THOUGH WAS THAT GROWTH WAS COUPLED WITH VERY LOW INFLATION THE COST OF GROSS DOMESTIC PURCHASES ROSE AT AN ANNUAL RATE OF ONLY 18 AFTER INCREASING AT A 29 PACE IN THE SECOND QUARTER PRIMARILY BECAUSE OF LOWER ENERGY AND FOOD PRICES IT WAS THE SMALLEST INCREASE SINCE 1986 PRESIDENT CLINTON SEIZED ON THE FIGURES AS A SIGN THAT THE RECOVERY HAS TAKEN HOLD THESE NUMBERS MAKE CLEAR THAT THE HISTORIC DROP IN INTEREST RATES IS SPARKING A SUSTAINABLE RECOVERY THAT IS INCREASING INVESTMENTS IN OUR FUTURE HE SAID PRIVATE ECONOMISTS WERE ALSO CONFIDENT THAT THE BENEFITS OF LOW INTEREST RATES WILL CONTINUE TO RIPPLE THROUGH THE ECONOMY WHILE SPENDING ON BUSINESS EQUIPMENT HAS SHOWN CONSISTENT STRENGTH IN RECENT QUARTERS IT IS INVESTMENT IN NEW HOMES THAT HAS SEEMED MOST RESISTANT TO HISTORICALLY LOW INTEREST RATES BUT THE THIRD QUARTER SUGGESTS THE LOW RATES ARE FINALLY HAVING AN IMPACT IN THIS AREA TOO RESIDENTIAL FIXED INVESTMENT JUMPED AT A 101 ANNUAL RATE DURING THE PERIOD AFTER FALLING AT A 95 RATE IN THE SECOND QUARTER AND RISING AT ONLY A TINY 15 PACE IN THE FIRST HOWEVER INVESTMENT IN CAPITAL EQUIPMENT WHILE STILL STRONG SEEMS TO HAVE LEVELED OFF FROM ITS HEADY GROWTH AT THE START OF THE YEAR BUSINESS INVESTMENT WAS UP AT A 90 RATE IN THE THIRD QUARTER COMPARED WITH RATES OF NEARLY 20 IN EACH OF THE FIRST TWO QUARTERS OF THE YEAR PERSONAL CONSUMPTION EXPENDITURES ROSE AT A 42 ANNUAL RATE AFTER CLIMBING AT A 34 RATE IN THE PRECEDING QUARTER ADMINISTRATION IS OPTIMISTIC IN ADDITION LEWIS ALEXANDER THE COMMERCE DEPARTMENT'S CHIEF ECONOMIST SAID THAT IF FARM OUTPUT HADN'T BEEN DEPRESSED BY FLOODING IN THE MIDWEST AND DROUGHT IN THE SOUTHEAST THE ECONOMY WOULD HAVE GROWN A MORE ROBUST 34 IN THE THIRD QUARTER MR ALEXANDER SAID HE FELT CONFIDENT GROWTH WOULD BE EVEN STRONGER IN THE FOURTH QUARTER AND INTO 1994 MOST LIKELY EXCEEDING THE ADMINISTRATION'S FORECAST OF 30 GROWTH FOR NEXT YEAR THE REPORT STILL PAINTS A PICTURE OF MODEST GROWTH THOUGH IT IS CONSIDERABLY FASTER THAN THE 13 GROWTH RATE REGISTERED IN THE FIRST HALF OF THE YEAR MORE IMPORTANTLY IT SEEMS AS IF STRONGER ECONOMIC GROWTH IS CONTINUING IN THE FOURTH QUARTER AS INDICATED BY HEALTHY AUTO SALES SO FAR THIS MONTH BUT DEFENSE CUTBACKS AND WEAK EXPORT GROWTH CONTINUE TO WEIGH HEAVILY ON US ECONOMIC PERFORMANCE FEDERAL GOVERNMENT PURCHASES FELL AT A 61 RATE DURING THE PERIOD AS DEFENSE SPENDING DROPPED AT AN 83 RATE NONDEFENSE GOVERNMENT SPENDING ALSO FELL ALSO THE TRADE DEFICIT WIDENED EXPORTS WILL PROBABLY HOLD US BACK FOR ANOTHER YEAR AND DEFENSE DOWNSIZING WILL HURT FOR ANOTHER TWO SAID KURT KARL HEAD OF MACROECONOMIC FORECASTING FOR THE WEFA GROUP IN SUBURBAN PHILADELPHIA ANALYSTS ALSO NOTED THAT A DECLINE IN DOMESTIC AUTO PRODUCTION SHAVED OFF A BIT OF GROWTH FROM THIRDQUARTER GDP ASSEMBLIES FELL AT A 31 ANNUAL RATE IN THE THIRD QUARTER ACCORDING TO THE COMMERCE DEPARTMENT SEPARATELY THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR UNEMPLOYMENT BENEFITS FELL BY 4000 LAST WEEK TO 347000 ANALYSTS SAID THE DATA CONTINUE TO SUGGEST THAT THE LABOR MARKET IS SLOWLY IMPROVING THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH IS CONSIDERED A BETTER MARKER OF LABOR MARKET CONDITIONS ROSE TO 340750 FROM 336250 ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9310290137 931029 WHO'S NEWS TEXTRON APPOINTS LEWIS B CAMPBELL PRESIDENT DIRECTOR BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL TEXTRON INC NAMED LEWIS B CAMPBELL PRESIDENT AND A DIRECTOR PUTTING THE FORMER GENERAL MOTORS CORP MANAGER IN LINE TO SUCCEED THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE JAMES F HARDYMON MR CAMPBELL 47 YEARS OLD JOINED TEXTRON FROM GM A YEAR AGO ASSUMING THE TITLE OF CHIEF OPERATING OFFICER WHICH HE WILL RETAIN HE HAD BEEN GENERAL MANAGER OF THE GMC TRUCK UNIT AND A VICE PRESIDENT AND ANALYSTS SAW HIM AS A RISING STAR AT THE AUTO MAKER TEXTRON HAD GREAT EXPECTATIONS WHEN HE CAME AND HE'S OBVIOULY MET THOSE EXPECTATIONS SAID SIDNEY HELLER AN ANALYST AT LEHMAN BROTHERS THIS MOVE MAKES IT CLEAR THAT HE'S THE LIKELY SUCCESSOR THE MOVE IS A FURTHER SIGN OF TEXTRON'S STRATEGIC COMMITMENT TO STRENGTHEN AND EXPAND ITS COMMERCIAL MANUFACTURING BUSINESS WHILE REDUCING ITS RELIANCE ON FINANCIAL SERVICES MR HARDYMON 58 SAID MR CAMPBELL IS MOVING UP IN PART BECAUSE OF HIS ABILITY TO TIGHTLY RUN MANUFACTURING OPERATIONS NAMING MR CAMPBELL TO THE BOARD INCREASES IT TO 14 MEMBERS THE NEXT STEP FOR MR CAMPBELL WON'T COME SOON MR HARDYMON WILL RELINQUISH THE PRESIDENT'S TITLE TO MR CAMPBELL BUT REMAIN CHAIRMAN AND CHIEF EXECUTIVE AFTER THE CHANGE IS EFFECTIVE JAN 1 MR HARDYMON SAID THE MOVE FREES HIM FROM MOST DAYTODAY OPERATIONS TO CONCENTRATE ON STRATEGIC ISSUES AT THE PROVIDENCE RI CONGLOMERATE WHICH HAS ABOUT 9 BILLION IN REVENUE IN 35 BUSINESSES RANGING FROM BELL HELICOPTERS AND CESSNA AIRCRAFT TO EZGO GOLF CARTS MR HARDYMON SAID MR CAMPBELL HAS A TREMENDOUS OPPORTUNITY IN THIS COMPANY TO MOVE TO THE TOP ASKED IF OTHER MANAGERS WERE IN THE RUNNING HOWEVER HE SAID THAT WE HAVE FOUR OR FIVE PEOPLE MOVING THROUGH THE PRIME OF THEIR CAREERS IN THE SENIOR RANKS AND OVER THE NEXT SIX OR SEVEN YEARS WE'LL JUST SEE WHAT HAPPENS JACK MODZELEWSKI AN ANALYST WITH PAINEWEBBER SAID MR CAMPBELL'S NEW POST IS A CLEAR SIGNAL OF THE NEW EMPHASIS IN MANUFACTURING HE NOTED THAT TEXTRON'S FIRST BIG ACQUISITION AFTER MR CAMPBELL'S ARRIVAL WAS CHRYSLER CORP'S ACCUSTAR UNIT AN AUTOMOTIVE PLASTICS BUSINESS BOUGHT EIGHT MONTHS AGO FOR 138 MILLION HE WAS THE ARCHITECT OF THAT ACQUISITION MR MODZELEWSKI SAID PREDICTING MORE SUCH MOVES COULD BE IN THE OFFING MR HARDYMON DIDN'T DISPUTE THE COMPANY'S INTEREST IN FURTHER ACQUISITIONS WE WANT TO MOVE UP THE INVESTMENT RETURNS AT THIS COMPANY AND WE CAN DO SOME OF THAT OPERATIONALLY AND SOME OF IT BY MAKING STRATEGIC MOVES AT THE SAME TIME HE SAID OUR DEFENSE BUSINESS WILL BE GETTING SMALLER AND WE'LL HAVE TO TIGHTLY MANAGE THAT PROCESS MR MODZELEWSKI APPLAUDED MR HARDYMON'S MANAGEMENT STYLE SAYING IT IS WELL SUITED TO A DIVERSIFIED CONGLOMERATE AND HE KEEPS HEADQUARTERS STAFF LEAN SEPARATELY TEXTRON SAID IT SETTLED AFTER A FIVEYEAR WAIT AN ANTITRUST ACTION BROUGHT BY THE FEDERAL TRADE COMMISSION OVER THE ACQUISITION OF AVDEL PLC A BRITISH MAKER OF FASTENERS FOR COMMERCIAL AND AEROSPACE MARKETS UNDER THE SETTLEMENT TEXTRON WILL DIVEST CERTAIN OPERATIONS OF THE UNIT THE SETTLEMENT WILL ALLOW TEXTRON TO CONSOLIDATE AVDEL'S EARNINGS WHICH AMOUNTED TO 9 MILLION IN THE FIRST SIX MONTHS ON SALES OF 78 MILLION 9310290136 931029 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED OCT 22 ACCOUNTED FOR 81 OR AN AVERAGE 248 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 12 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 253 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 484 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 46 OF PROGRAM TRADING WAS EXECUTED BY FIRMS' FOR THEIR CUSTOMERS WHILE 429 WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 111 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS SUSQUEHANNA GOLDMAN SACHS AND COOPER NEFF EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND W&D SECURITIES DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9310290135 931029 THE BUSINESS OF LAW GEOGRAPHY LESSON IN RECENT YEARS MANY CORPORATE CLIENTS HAVE REDUCED THEIR LEGAL BILLS BY TURNING MORE TO LAW FIRMS OUTSIDE OF NEW YORK AND THE OTHER PRICIEST CITIES TYPICAL HOURLY BILLING RATES BELOW FOR FIRMS' HIGHEST PAID PARTNERS AND ASSOCIATES SHOW HOW GREAT THE REGIONAL DISPARITIES CAN BE 9310290134 931029 GRAZINGFEE RISE WILL BE IMPLEMENTED BY BABBITT IN REPLY TO SENATE FILIBUSTER BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON INTERIOR SECRETARY BRUCE BABBITT RESPONDING TO A FILIBUSTER AGAINST A COMPROMISE PROPOSAL TO INCREASE FEDERAL GRAZING FEES PLANS TO GO AHEAD WITH THE STEEPER FEE INCREASE HE PROPOSED IN AUGUST MR BABBITT SAID THE CLINTON ADMINISTRATION WAS STILL WILLING TO SUPPORT THE COMPROMISE BILL BROKERED EARLIER THIS MONTH BY SEN HARRY REID D NEV THAT WOULD INCREASE GRAZING FEES TO 345 PER ANIMAL UNIT MONTH FROM THE CURRENT 186 PER ANIMAL UNIT MONTH OVER A PERIOD OF THREE YEARS AN ANIMAL UNIT MONTH IS THE AMOUNT OF FORAGE IT TAKES TO FEED ONE COW AND A CALF OR FIVE SHEEP FOR ONE MONTH BUT CITING THE FILIBUSTER LED BY SEN PETE DOMENICI R NM MR BABBITT SAID HE HAD NO CHOICE BUT TO PROCEED WITH THE INTERIOR DEPARTMENT'S ORIGINAL PLAN WHICH WOULD INCREASE GRAZING FEES TO 428 PER ANIMAL UNIT MONTH WITHOUT CONGRESSIONAL APPROVAL THE DEPARTMENT CAN'T STAND IDLY BY WAITING INTERMINABLY FOR REFORM THAT JUST NEVER SEEMS TO HAPPEN MR BABBITT SAID MR BABBITT'S ACTION REPRESENTS THE LATEST IN A SERIES OF TWISTS AND TURNS FOR THE ADMINISTRATION'S EFFORTS TO REFORM MANAGEMENT OF FEDERAL LANDS ORIGINALLY PROPOSED AS AN ITEM IN THIS YEAR'S BUDGET THE GRAZINGFEE INCREASE WAS WITHDRAWN BY PRESIDENT CLINTON WHEN IT DREW FIRE FROM WESTERN SENATORS MR BABBITT THEN INTRODUCED THE FEE INCREASE AS AN ADMINISTRATIVE MEASURE ALONG WITH A SERIES OF OTHER RANGELAND INITIATIVES AIMED MAINLY AT IMPROVING CONSERVATION WHEN THESE IN TURN RAN INTO CONGRESSIONAL ROADBLOCKS MR BABBITT AGREED TO THE COMPROMISE MEASURE WHICH WAS INCLUDED IN THE INTERIOR DEPARTMENT'S APPROPRIATIONS BILL BUT THAT BILL HAS BEEN STALLED FOR A WEEK IN THE SENATE DUE TO THE FILIBUSTER WHICH WON SUFFICIENT SUPPORT FROM SENATE REPUBLICANS AND FIVE WESTERN DEMOCRATS TO BLOCK ACTION THREE ATTEMPTS TO HALT THE FILIBUSTER HAVE FAILED INCLUDING A VOTE YESTERDAY THAT WAS SIX VOTES SHORT OF THE NEEDED 60 IF THE MEASURE CONTINUES TO BE BLOCKED THE SENATE APPROPRIATIONS COMMITTEE IS EXPECTED TO STRIP THE GRAZINGFEE PROPOSAL TO ACHIEVE PASSAGE OF THE SPENDING MEASURE THE INTERIOR SECRETARY SAID THAT THE DEPARTMENT'S RANGELAND INITIATIVES INCLUDING THE STEEPER GRAZINGFEE INCREASE WOULD BE PUBLISHED IN THE FEDERAL REGISTER WITHIN DAYS AND THAT FINAL ACTION WOULD PROBABLY TAKE PLACE SOMETIME IN THE SPRING ASKED AT A NEWS CONFERENCE IF HE EXPECTED A COURT CHALLENGE MR BABBITT REPLIED I DON'T THINK THERE'S A FEDERAL JUDGE IN THE LAND WHO WOULD BLOCK A PROPERLY CONSTRUCTED RULE IN A STATEMENT SEN DOMENICI SAID HE WAS DISMAYED AND DISAPPOINTED AT MR BABBITT'S ACTION BUT HE APPEARED TO ACCEPT THAT MR BABBITT HAD THE POWER TO IMPLEMENT THE CHANGE THE FEE LEVEL CAN BE SET AT HIS DISCRETION HE SAID HE OUGHT NOT CAUSE THE PEOPLE OF THE WEST ANY MORE HARM 9310290133 931029 AMERICAN AIR FLIGHT ATTENDANTS PACT SET TO EXPIRE SETTING UP CONFRONTATION BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN AIRLINES' CONTRACT WITH ITS FLIGHT ATTENDANTS EXPIRES TONIGHT SETTING THE STAGE FOR THE FIRST MAJOR LABOR CONFRONTATION SINCE THE AMR CORP UNIT BEGAN RETRENCHING EARLIER THIS YEAR NO STRIKE WILL OCCUR TONIGHT THE UNION THE ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS HAS SET A STRIKE DATE OF NOV 22 WHICH WOULD PUT A POSSIBLE WALKOUT SMACK IN THE MIDDLE OF THE THANKSGIVING HOLIDAY THE NATION'S BIGGEST TRAVEL PERIOD WHERE IT COULD DO THE MOST DAMAGE TO AMERICAN'S OPERATIONS AN AMERICAN SPOKESMAN SAID THE TWO SIDES HAVE MADE PROGRESS RECENTLY A UNION SPOKESMAN DECLINED COMMENT THE POSSIBLE CONFRONTATION COMES AMID A RECENT SPATE OF LABOR DIFFICULTIES AT MOST OF THE NATION'S MAJOR AIRLINES AS CARRIERS WRESTLE WITH HIGH COSTS AMID LOW DEMAND FOR THEIR SERVICES AMERICAN HAS ASKED ITS FLIGHT ATTENDANTS TO ACCEPT A NEW CONTRACT THAT CALLS FOR STEEP RAISES FOR LOWSENIORITY WORKERS BUT CUTS STAFFING AND BENEFITS AND OVERHAULS SCHEDULING THE UNION IN TURN IS PUSHING FOR AN INDUSTRYLEADING CONTRACT THE ANTE WAS UPPED SOMEWHAT YESTERDAY WHEN THE CARRIER'S PILOTS UNION PLEDGED TO SUPPORT THE FLIGHT ATTENDANTS AND SAID THEY'D POLL THEIR MEMBERS TO SEE IF THEY WOULD BACK A SYMPATHY STRIKE THE ALLIED PILOTS ASSOCIATION REPRESENTING ABOUT 9000 MEMBERS IS KEEPING CLOSE TABS ON THE OUTCOME OF THE FLIGHT ATTENDANTS' TALKS BECAUSE ITS CONTRACT IS THE NEXT ONE AMERICAN HAS TO NEGOTIATE TO BE SURE TALK OF A STRIKE MAY BE PREMATURE IN 1987 AMERICAN CAME WITHIN HOURS OF A THREATENED CHRISTMASTIME WALKOUT BY ITS FLIGHT ATTENDANTS BUT GOT A LASTMINUTE AGREEMENT IN 1991 AMERICAN HAD EXCEEDINGLY TESTY RELATIONS WITH ITS PILOTS BEFORE THE TWO SIDES AGREED ON A NEW CONTRACT IN THE PAST MONTH AMERICAN HAS BEEN PUTTING SOME MANAGEMENT AND NONCONTRACT WORKERS THROUGH A THREEDAY COURSE AS FLIGHT ATTENDANT REPLACEMENTS BUT THESE WORKERS ARE BEING TRAINED AS CUSTOMER SERVICE REPRESENTATIVES WHO CAN SERVE MEALS AND DRINKS AND GENERALLY MAKE A PASSENGER COMFORTABLE THEY'RE NOT BEING PUT THROUGH THE MORE RIGOROUS WEEKSLONG SAFETY TRAINING COURSE THE FEDERAL GOVERNMENT REQUIRES FOR FLIGHT ATTENDANTS THAT'S A SIGNAL THAT AMERICAN EXPECTS MANY WORKERS TO CROSS A PICKET LINE IF THERE IS ONE THE AMERICAN SPOKESMAN SAID THE AIRLINE EXPECTS ALL ITS EMPLOYEES TO COME TO WORK A UNION REPRESENTATIVE SAID HE WON'T COMMENT ON ANY ASPECT OF THE TALKS UNTIL AFTER MIDNIGHT TONIGHT AT THE SAME TIME AMR CHAIRMAN ROBERT L CRANDALL HAS BEEN TAKING SWIPES AT AMERICAN'S NONCOMPETITIVE LABOR CONTRACTS IN A MEETING WITH WALL STREET ANALYSTS LAST MONTH MR CRANDALL SAID LABOR COSTS MUST COME DOWN WE SHALL CONTINUE TO SEEK TO PERSUADE OUR EMPLOYEES AND THEIR UNION LEADERS THAT COST REDUCTIONS ARE IN THEIR LONGTERM INTEREST 9310290131 931029 ELECTRONIC FIRMS IN JAPAN POST DISMAL RESULTS MITSUBISHI CHALKS UP GAIN BUT 3 OTHERS ARE DOWN AND FUJITSU HAS LOSS BY STEVE MARKOWITZ SPECIAL TO THE WALL STREET JOURNAL TOKYO WEAK DEMAND AND CONTINUED PRICE PRESSURE MEAN THE HARD TIMES AREN'T OVER FOR JAPAN'S MAINSTAY HIGHTECHNOLOGY BUSINESSES ANALYSTS SAY OF THE FIVE MAJOR ELECTRONICS CONCERNS THAT RELEASED INTERIM EARNINGS THURSDAY ONLY ONE MITSUBISHI ELECTRIC CORP POSTED A RISE IN PRETAX PROFIT THREE SAW DROPS OF VARYING DEGREES AND JAPAN'S LARGEST COMPUER MAKER FUJITSU LTD WAS MIRED IN RED INK THE COMPANIES IN THE WORST TROUBLE THE ANALYSTS ADDED HAVE THE HEAVIEST EXPOSURE TO MAINFRAME COMPUTERS IN AN AGE IN WHICH DOWNSIZING INFORMATION SYSTEMS IS THE GAME THE BETTEROFF CONCERNS ARE AGGRESSIVELY PURSUING SOCALLED OPEN SYSTEMS WHICH ALLOW THE SHARING OF SOFTWARE AMONG RIVAL BRAND COMPUTERS AND ARE WORKING HARD TO DEAL WITH EXCESS LABOR THEY ADD PARENT COMPANY PRETAX PROFIT WAS UP 22 AT MITSUBISHI ELECTRIC AND DOWN 48 AT TOSHIBA CORP 20 AT HITACHI LTD AND 53 AT NEC CORP FUJITSU WHICH POSTED ITS FIRSTEVER LOSS LAST YEAR HAD A DEFICIT OF 1379BILLIONYEN 127 MILLION FOR THE FISCAL FIRST HALF ENDED SEPT 30 WE KNEW THE OPERATING ENVIRONMENT WAS BAD SAID STEVE MEYERS AN ANALYST AT JARDINE FLEMING SECURITIES LTD IN TOKYO THESE COMPANIES WERE DOWN AND NOW THEY'VE GOTTEN KICKED BY THE YEN THE JAPANESE CURRENCY STARTED THE HALF AT 115 YEN TO THE DOLLAR WENT AS HIGH AS 101 TO THE DOLLAR IN MIDAUGUST AND ENDED THE SIXMONTH PERIOD AT 105 TO THE DOLLAR FUJITSU WITH ITS 1379BILLIONYEN PRETAX LOSS ATTRIBUTED 1870 BILLION YEN OF ITS DROP IN SALES TO THE STRONGER YEN WHICH EATS INTO RETURNS WHEN REPATRIATED TO JAPAN OTHERS REPORTED SIMILARLY SEVERE FIGURES SEVERAL OF THE HIGHTECHNOLOGY COMPANIES NOTED UNCERTAINTY REGARDING THE FUTURE DIRECTION OF THE YEN'S MOVEMENT IN LOWERING THEIR FULLYEAR EARNINGS FORECASTS INDUSTRY LEADERS AT THE SAME TIME TELL OF QUICKENED EFFORTS TO SHIFT PROCUREMENT AND PRODUCTION OVERSEAS TO COMBAT THE NEGATIVE EFFECTS OF THE JAPANESE CURRENCY'S APPRECIATION TOSHIBA HITACHI AND NEC ALL FORECAST THE YEN'S AVERAGING 105 TO THE DOLLAR DURING THE FISCAL SECOND HALF A HIGH OFFICIAL OF TOSHIBA WHICH IS ADVANCED RELATIVELY IN ITS LOCALIZING EFFORTS SUMMED UP THE SITUATION THERE'S NO WAY WE CAN AVOID FURTHER TRANSFERRING OF MANUFACTURING OPERATIONS OVERSEAS HE SAID THIS IS A MUST TO COUNTER THE YEN'S ADVANCE IN THE CURRENCY MARKETS TOSHIBA HAS JUST ABOUT ELIMINATED EXPORTS OF HOUSEHOLD ELECTRICAL APPLIANCES FROM JAPAN AND NOW MUST FOCUS ON BUILDING COMPUTERS WHERE IT SELLS THEM IN TOSHIBA'S CASE THAT MEANS THE US AND EUROPE HE SAID BUT COUNTERYEN MEASURES WON'T BE ENOUGH WITH SALES EXPECTED TO REMAIN SLUGGISH UNTIL THE END OF THE YEAR FOR EVERYTHING FROM CONSUMER ELECTRONICS GEAR TO MAINFRAME COMPUTERS WITH THE EXCEPTION OF SEMICONDUCTORS ANALYSTS SAID THE COMPANIES HAVE PLANS TO TRIM STAFFING THROUGH ATTRITION AND TO PARE RESEARCH AND DEVELOPMENT SPENDING CHUCK GOTO AN ANALYST AT SG WARBURG SECURITIES JAPAN INC SAID CUTTING BACK ISN'T SOMETHING THAT WILL PRODUCE RESULTS RIGHT AWAY THEY CAN'T DO IT LIKE IN THE US WHERE COMPANIES RESORT TO MASS FIRINGS TO RESCUE EARNINGS THE COMPANIES MEANTIME ARE FACING BOTH ANEMIC DEMAND AND STEPPEDUP PRICE COMPETITION EVERYBODY'S UNDER PRESSURE SAID JARDINE FLEMING'S MR MEYERS ALL OF THE BIG CUSTOMERS OF THESE COMPUTER MAKERS HAVE WEAK PROFITS AND ARE SHOPPING FOR VALUE PERSONALCOMPUTER PRICES AND PROFITS HAVE FALLEN AS WELL BECAUSE OF THE PRICE WAR LAUNCHED BY FOREIGN COMPUTER MAKERS LAST YEAR AND AN UNSEASONABLY COOL SUMMER SAPPED SALES OF AIR CONDITIONERS ALL THE HIGHTECHNOLOGY COMPANIES EXCEPT TOSHIBA ARE ANTICIPATING LOWER SALES IN THE YEAR AND BESIDE NEC AND FUJITSU THE COMPANIES EXPECT RETREATING PROFITS FUJITSU OFFICIALS SAID THEY PLAN TO UNLOAD SECURITIES HOLDINGS AND TAKE OTHER MEASURES TO EKE OUT A 15 BILLIONYEN UNCONSOLIDATED PROFIT DESPITE THE 1379 BILLIONYEN LOSS IN THE FIRST HALF THE ANALYSTS SAID THEY FAVOR TOSHIBA BECAUSE OF ITS EARLYON RATIONALIZATION EFFORTS AND LACK OF EXPOSURE TO MAINFRAME COMPUTERS MR MEYERS SAID NEC ALSO COULD PROVE A WINNER THIS YEAR FROM A STOCK MARKET PERSPECTIVE YOU MAKE MONEY FROM SURPRISES HE SAID NOTING THAT WITH SEMICONDUCTOR DEMAND ON THE RISE AND THE YEN HAVING POTENTIAL TO WEAKEN NEC A LEADING MEMORY CHIP MAKER MAY EXCEED MARKET EXPECTATIONS BUT THE ANALYSTS FROWN ON FUJITSU DESPITE ITS CALL FOR A RETURN TO THE BLACK THIS YEAR THEY'RE STILL A COMPANY THAT DEPENDS VERY HEAVILY ON MAINFRAMES AND THAT'S NOT GOING TO BE A HAPPY PLACE TO BE FOR THE NEXT COUPLE OF YEARS SAID A LOCAL INDUSTRY ANALYST 9310290129 931029 FORM + FUNCTION BY JOHN PIERSON THERE'S A NEW GUN IN TOWN BLACK & DECKER SAYS ITS POWERSHOT HEAVYDUTY STAPLE GUN SOLVES THE PROBLEM OF KICKBACK WHICH OFTEN PREVENTS STAPLES FROM BEING DRIVEN IN ALL THE WAY BY TURNING THE TRIGGER AROUND POWERSHOT PUTS THE FIRING FORCE OF THE HAND DIRECTLY OVER THE STAPLE WHICH PRODUCES BETTER CONTROL AND PENETRATION BLACK & DECKER SAYS THE COMPANY GOT DESIGN HELP FROM WORK TOOLS CHATSWORTH CALIF WHICH FASHIONED A SPRING THAT MADE ROOM FOR THE HAND TO MOVE FORWARD ON THE POWERSHOT INNOVATIONS & DEVELOPMENT EDGEWATER NJ REPLACED THE STANDARD HOUSING STAMPED STEEL WITH MOLDED ZINCALUMINUM ALLOY INITIAL USERS SAY THEY LIKE THE POWERSHOT NO KICKBACK AND IT DRIVES STAPLES ALL THE WAY IN SAYS JOHN CABOT A VICE PRESIDENT AT KRAFT FOOD SERVICE WHO HAS USED THE NEW GUN TO INSULATE PART OF HIS GARAGE IN GLENVIEW ILL YOU CAN REALLY SOCK IT TO 'EM SAYS MARTY MILLER A CREDIT MANAGER WITH PEPSICO IN BALTIMORE A LITTLE OLD LADY COULD USE IT ADDS JOHN CUMMINGS A MANAGER WITH EMERY WATERHOUSE A HARDWARE WHOLESALER IN PORTLAND MAINE BUT THE PRESIDENT OF ANOTHER STAPLEGUN MAKER WHO DECLINES TO BE NAMED CONTENDS THE POWERSHOT BREAKS WHEN DROPPED FROM THREE OR FOUR FEET BREAKS AFTER FIRING 2000 STAPLES FAILS TO DRIVE IN STAPLES ALL THE WAY JAMS OFTEN AND WORKS SLOWLY DIANE DEOSSIE A PRODUCT MANAGER WITH BLACK & DECKER REPLIES THAT IN TESTS POWERSHOT DID FINE WHEN DROPPED ON CONCRETE FROM SIX FEET LASTED AT LEAST 25000 SHOTS DID AS WELL OR BETTER THAN THE COMPETITION IN DRIVING STAPLES JAMMED LESS AND WORKED ABOUT AS FAST AS THE OTHERS IT AIN'T LEVITATION BUT IT'S CLOSE BOB RUBINO HAS INVENTED A WAY TO USE STATIC ELECTRICITY TO MOUNT PICTURES ON WALLS WITHOUT GLUE NAILS OR TAPE HE PRESSES A THIN FILM OF PLASTIC BETWEEN PICTURE AND WALL AND RUBS THE PICTURE WITH A BATTERYPOWERED WAND THAT GIVES OFF STATIC ELECTRICITY THUS CHARGED HE SAYS THE PICTURE WILL STAY UP FOR YEARS THE AIRMOUNT SYSTEM WORKS ON WALLPAPER PLASTER WOOD DRYWALL GLASS CEMENT MARBLE STUCCO CINDERBLOCK AND BRICK IT WILL HOLD PAPER CARDBOARD AND PHOTOS WEIGHING UP TO FIVE POUNDS A SQUARE FOOT SAYS BRIAN FELDMAN PRESIDENT OF ADHESIVE ALTERNATIVE SAN FRANCISCO AIRMOUNT IS BEGINNING TO CATCH ON LAUREL MARKETING GROUP LOS ANGELES WILL USE THE SYSTEM NEXT SPRING TO ADVERTISE A PERMANENT COFFEE FILTER IN 2400 FOOD STORES COASTTOCOAST STEPHEN TUELL A PHYSICIAN IN KAPAA HAWAII SAYS HE USES AIRMOUNT TO HOLD PAPER TO THE WALL DURING CONFERENCES LAST YEAR AFTER HURRICANE INIKA FLATTENED HIS HOUSE DR TUELL FOUND PHOTOGRAPHS AND NOTE PAPERS STILL CLINGING TO THE WALLS WHERE HE HAD AIRMOUNTED THEM BUT ANOTHER USER GEOFF RALSTON A MARKETER WITH HEWLETTPACKARD CUPERTINO CALIF SAYS AIRMOUNTED PICTURES LOSE POWER IF YOU TOUCH THEM AND A SELLER OF COMPETING PRODUCTS JEFF DWORETZ MARKETING DIRECTOR AT BAUMGARTEN'S AN ATLANTABASED OFFICESUPPLY FIRM THINKS AIRMOUNT IS EXPENSIVE A TOUGH SELL A 100 ACTUALLY 190 GIZMO TO HANG PICTURES HE SAYS MR FELDMAN REPLIES THAT THE AIRMOUNT WAND QUICKLY PAYS FOR ITSELF IN FEWER WALLS TO REDECORATE DARREK ROSEN HAS A SIMPLE IDEA ONE THAT ALL APPLAUD BUT NO ONE WANTS TO PRODUCE A SENIOR AT ART CENTER COLLEGE OF DESIGN PASADENA CALIF MR ROSEN HAS CREATED A REMOTELY TRIGGERED CAMERA IN WHICH THE REMOTE CONTROL IS PART OF THE CAMERA RATHER THAN AN ACCESSORY THE ROSEN AUTOMATIC POINTANDSHOOT IS AN ELLIPSE OF WHICH AN ARCSHAPED PIECE IS THE REMOTE CONTROL TO USE THE INFRARED REMOTE TO TRIGGER THE SHUTTER BREAK OFF THE CONTROL AS IF IT WERE A PIECE OF A COOKIE SET THE CAMERA ON ITS NOWFLAT EDGE AND MOVE AWAY A REMOTE CONTROL FOR A CAMERA IS NOT AN ORIGINAL IDEA CONCEDES MR ROSEN BUT MAKING IT AN INTEGRAL PART OF THE CAMERA DESIGN IS NEW NIKON OFFERS REMOTES WITH ITS PROFESSIONAL MODELS AND RECOMMENDS STORING THEM IN A CAMERA BAG CANON HANGS ITS POINTANDSHOOT REMOTES ON THE CAMERA STRAP CHUCK WESTFALL TECHNICALINFORMATION SPECIALIST WITH CANON SAYS THAT JUDGING ONLY FROM A PICTURE IN A MAGAZINE THE ROSEN CAMERA IS QUITE ATTRACTIVE LOOKING BUT MR WESTFALL FRETS THAT THE ELLIPTICAL CAMERA MAY BE TOO BIG FOR CURRENT CONSUMER TASTES THE ROSEN CAMERA IS 4 7/8 INCHES LONG BY 3 7/8 INCHES WIDE BY 1 1/4 INCHES DEEP EASTMAN KODAK AND ALIAS RESEARCH A SOFTWARE DEVELOPER SUPPORTED THE PROJECT DAVID HANSEN A DESIGN MANAGER AT KODAK CALLS THE ROSEN CAMERA AN EXCELLENT DESIGN BUT ONE THAT DOESN'T FIT KODAK'S DESIGN PHILOSOPHY WHICH MR HANSEN DESCRIBES AS CONSERVATIVE 9310290128 931029 TECHNOLOGY KENDALL SQUARE SIGNALS UNEXPECTED THIRDQUARTER LOSS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL KENDALL SQUARE RESEARCH CORP WARNED OF AN UNEXPECTED LOSS FOR THE THIRD QUARTER AND SAID REVENUE WOULD BE SUBSTANTIALLY BELOW EXPECTATIONS THE WALTHAM MASS SUPERCOMPUTER MAKER ALSO SAID THAT GEORGE MCCLELLAND SENIOR VICE PRESIDENT CHIEF ADMINISTRATIVE OFFICER AND TREASURER RESIGNED MR MCCLELLAND WHO WAS A SENIOR EXECUTIVE AT FIDELITY INVESTMENTS JOINED KENDALL IN THOSE POSITIONS ONLY A MONTH AGO A SPOKESMAN WOULDN'T COMMENT ON THE SUDDEN RESIGNATION AND MR MCCLELLAND COULDN'T BE REACHED LAST NIGHT KENDALL SQUARE'S DISCLOSURE ALSO CONTAINED AN INDICATION THAT THERE COULD BE MORE TROUBLE AHEAD IT SAID THAT WHILE SHIPMENTS DURING THE QUARTER WERE GENERALLY IN LINE WITH EXPECTATIONS THE AMOUNT OF REVENUE FROM THESE SHIPMENTS THAT CAN BE INCLUDED IN THE THIRD QUARTER RESULTS IS SUBJECT TO FURTHER REVIEW THE COMPANY WAS RECENTLY CRITICIZED BY AN ANALYST FOR RECOGNIZING REVENUE FROM ITS SALES TOO SOON AND CARRYING A HIGH LEVEL OF RECEIVABLES IT HAS RESPONDED THAT ITS PROCEDURES MEET GENERALLY ACCEPTED ACCOUNTING RULES KENDALL SQUARE AT THE VANGUARD OF COMPANIES TRYING TO BRING NEW PARALLELDESIGN COMPUTERS INTO COMMERCIAL MARKETS WAS EXPECTED TO REACH 60 MILLION IN SALES THIS YEAR UP FROM 20 MILLION LAST YEAR AND ITS SHARES HAVE MORE THAN DOUBLED SINCE THEIR INITIAL OFFERING LAST YEAR THE COMPANY MADE YESTERDAY'S DISCLOSURE AFTER THE CLOSE OF THE MARKET EARLIER KENDALL SQUARE SHARES HAD GAINED 54 OR 125 EACH TO CLOSE AT 2425 IN ACTIVE NATIONAL OVERTHECOUNTER TRADING KENDALL SQUARE WAS EXPECTED TO EARN BETWEEN NINE CENTS AND 13 CENTS A SHARE IN THE QUARTER ENDED SEPT 25 THE YEARAGO THIRD QUARTER LOSS WAS 33 MILLION OR 29 CENTS A SHARE ON SALES OF 53 MILLION THE DISCLOSURE MARKS A DRAMATIC REVERSAL FROM THE COMPANY'S STATEMENTS AS RECENTLY AS AUG 12 WHEN KENDALL SQUARE'S PRESIDENT AND CHIEF EXECUTIVE OFFICER HENRY BURKHARDT ENDORSED ANALYSTS' ESTIMATES OF A PROFIT OF 45 CENTS TO 50 CENTS A SHARE FOR THE YEAR WHICH NOW SEEMS IMPROBABLE AND IT COMES AT AN AWKWARD TIME FOR KENDALL SQUARE WHICH PEOPLE IN THE INDUSTRY SAY IS ABOUT TO MAKE A MAJOR PRODUCT ANNOUNCEMENT TUESDAY THE NEW SYSTEM THEY SAY OFFERS MORE THAN TWICE THE POWER AND 10 TIMES THE EXPANSION POTENTIAL OF CURRENT MODELS THE COMPANY'S COMPUTERS EMPLOY THE RELATIVELY NEW PARELLEL DESIGN APPROACH IN WHICH SCORES OR EVEN HUNDREDS OF MICROPROCESSORS SIMULTANEOUSLY WORK ON A PROBLEM IN TRADITIONAL DESIGNS ONE TO FOUR LARGER PROCESSORS HANDLE TASKS SERIALLY 9310290127 931029 POTOMAC WATCH HILLARY'S HOPE HAVE GOP LIBERAL WILL TRAVEL BY PAUL A GIGOT EVERYONE'S TRYING TO BE POLITE BUT THE WHISPERING HERE IS THAT PRESIDENT CLINTON'S HEALTH PLAN IS ALREADY TERMINAL MAYBE THAT EXPLAINS WHY LIBERALS SUDDENLY LOVE JOHN CHAFEE HILLARY CLINTON CAN'T SEEM TO TALK TO THE RHODE ISLAND REPUBLICAN ENOUGH SHE CALLS HIM HER COUNSELOR AND ADVISER SHE'S MADE A HIGHLY PUBLICIZED VISIT TO PROVIDENCE AT HIS INVITATION AND WILL JOIN THE SENATOR TODAY AT ANOTHER HEALTH FORUM IN MISSOURI OTHER LIBERAL DEMOCRATS ARE TAKING HER CUE TOM DASCHLE SD AND HARRIS WOFFORD PA HIT THE SENATE FLOOR LAST WEEK TO TORCH ALTERNATIVES OFFERED BY REPUBLICAN PHIL GRAMM TEXAS AND DEMOCRATIC REP JIM COOPER TENN BUT THEY COOED OVER MR CHAFEE'S PLAN EVERYONE AGREES JOHN CHAFEE IS A SWELL GUY BUT THIS LOVEBOMBING ALSO HAS A SNEAKIER PURPOSE LIBERALS HOPE HE'LL GIVE THEIR IDEAS POLITICAL CPR MRS CLINTON CAN SEE SUPPORT EBBING AS AMERICANS LEARN MORE ABOUT HER 1336PAGE SIMPLIFIED SYSTEM SHE'S STRUGGLED TO GET EVEN 30 SENATE COSPONSORS AS SUCH MODERATE DEMOCRATS AS NEBRASKA'S BOB KERREY AND CONNECTICUT'S JOE LIEBERMAN HAVE JUST SAID NO MR LIEBERMAN I'M TOLD HAD TO ENDURE A VERY UNFRIENDLY PHONE CALL FROM THE PRESIDENT HIMSELF SO THE REAL FIGHT IS OVER THE COMPROMISE THE HILLARY FALLBACK IS TO LURE MR CHAFEE AND A FEW OTHER REPUBLICANS INTO ACCEPTING THE PRINCIPLES OF HER PLAN IF NOT ALL THE DETAILS THUS WOULD SHE GAIN BIPARTISAN POLITICAL COVER BLOCK A SENATE FILIBUSTER AND SLIP SOCIALISM'S NOSE UNDER THE TENT WALTER ZELMAN ONE OF HER MAIN SOCIAL ENGINEERS HAS TOLD COLLEAGUES THAT THIS OUTCOME WOULD LET HIM BUILD THE PLAN SLOWLY IN FUTURE YEARS THE IRONY OF MR CHAFEE'S NEW POLITICAL LEVERAGE IS THAT AT 71 YEARS OF AGE HE'S JUST ABOUT THE LAST OF THE ROCKEFELLER MOHICANS THE WEALTHY NORTHEAST LIBERALS WHO ONCE RULED THE GOP THE PARTY HAS SINCE MOVED SOUTH WEST AND RIGHT THIS SHIFT COST MR CHAFEE HIS SENATE LEADERSHIP POST IN 1990 A DEFEAT THAT FRIENDS SAY STILL RANKLES HIM ONE VOTE AND ONE OF MY VOTES WAS IN EUROPE HE SAYS OF THAT 2221 LOSS IT CERTAINLY SHOWED THE POWER OF THE CONSERVATIVES LIBERAL DEMOCRATS HOPE MR CHAFEE WILL NOW TAKE REVENGE ESPECIALLY BECAUSE CREDIT FOR HEALTH REFORM WOULD HELP HIS REELECTION BID NEXT YEAR IN AN INTERVIEW THIS WEEK MR CHAFEE SOUNDED TOUGHER THAN THAT THE REGULATION IN THE CLINTON PROGRAM IS EXTREME AND DEEPLY DISTURBING HE SAYS HE DOESN'T WANT TO COERCE EMPLOYERS INTO SUPPLYING HEALTH INSURANCE AND HE DEPLORES THE AUTOMATIC UNCONTROLLED SPENDING IN THE PLAN MY FAVORITE THE PLAN WOULD PAY FOR HEALTH EDUCATION CLASSES INCLUDING SMOKING CESSATION NUTRITION COUNSELING AND STRESS MANAGEMENT WHICH SOUNDS LIKE AN OPRAH ENTITLEMENT BUT THEN MR CHAFEE ADDS OMINOUSLY I THINK THE DIFFERENCES CAN BE RECONCILED THIS IS THE RUB AND THE REASON MANY REPUBLICANS ARE NERVOUS BECAUSE SOME DIFFERENCES CAN'T IN FACT BE SPLIT IF EMPLOYERS ARE FORCED TO PAY FOR INSURANCE THAT'S A DEFEAT FOR INDIVIDUAL RESPONSIBILITY PRICE CONTROLS EITHER EXIST OR THEY DON'T BOTH SIDES CAN'T WIN AND DON'T BE MISLED BY UNIVERSAL COVERAGE THE CLINTON MANTRA WHAT THEY REALLY MEAN IS THAT GOVERNMENT CONGRESS NO LESS SHOULD ESTABLISH THE SAME HEALTHCARE BENEFIT FOR EVERYONE A GIGANTIC NEW MIDDLECLASS ENTITLEMENT THE CHAFEE PLAN ALSO FALLS FOR THIS LINE AS IF A 50YEAROLD COUCH POTATO SHOULD HAVE THE SAME INSURANCE AS A 25YEAROLD WHO RIDES HIS MOTORCYCLE WITHOUT A HELMET AS THE FORMER HEAD OF THE NATIONAL INSTITUTES OF HEALTH BERNADINE HEALY RECENTLY TOLD REPUBLICAN SENATORS THERE ARE BETTER WAYS TO MAKE SURE EVERYONE HAS ACCESS TO HEALTH INSURANCE MR CHAFEE COULD BE SEEN FIDGETING IN HIS SEAT AS SHE TALKED SAY WITNESSES THE GOOD NEWS IS THAT MOST OF THE CHAFEE PLAN IS BETTER THAN THIS AND EVEN MR CHAFEE ADMITS HE'S NOT A SOLO OPERATOR HIS PLAN HAS 23 COSPONSORS SOME OF WHOM SAY THEY SIGNED UP TO SHOW MR CHAFEE HE NEEDN'T JOIN HILLARY TO GET CREDIT FOR HEALTH REFORM MY GOAL IS TO EXPAND THE CENTER SAYS SEN BOB BENNETT A FRESHMAN REPUBLICAN FROM UTAH WHO HAS ENDORSED BOTH THE CHAFEE AND GRAMM PLANS HE EXPECTS THAT ENOUGH REPUBLICANS AND DEMOCRATS WILL STAND FIRM FORCING THE CLINTONS TO REALIZE THEY MUST DROP THE SOCIALIST TRAPPINGS TO PASS A BILL MR BENNETT'S CONFIDENCE DERIVES FROM AN UNDERSTANDING THAT THE WORLD HAS CHANGED FROM THE 1960S THE CLINTON POLITICAL MODEL IS MEDICARE BUT THAT PASSED IN AN ERA WHEN AMERICANS TRUSTED BOTH GOVERNMENT AND THEIR PRESIDENT MORE THAN THEY DO NOW EVEN JOSEPH CALIFANO A FATHER OF MEDICARE SAID RECENTLY THAT THE FEDERAL GOVERNMENT HAS A MUCH MORE DIFFICULT TIME DOING THINGS IN AN AREA LIKE THIS EFFICIENTLY THAN THE PRIVATE SECTOR THE WORLD IS EMBRACING OPEN MARKETS NOT EXPANDED GOVERNMENT THE OLD ROCKEFELLER REPUBLICANS BELIEVED THEIR ONLY POLITICAL CHOICE WAS TO SIDE WITH THE LEFT BUT TODAY HISTORY IS MOVING IN THE OTHER DIRECTION WHICH IS WHY THE CLINTONS PRETEND THEIR PLAN IS SOMEHOW ABOUT COMPETITION AMERICANS WANT HEALTH REFORM BUT NOT AT THE EXPENSE OF THEIR FREEDOM OR A STIFLED ECONOMY THIS TIME MR CHAFEE AND HIS ALLIES COULD HOLD THE HIGH GROUND OF PRINCIPLE AND POLITICAL ADVANTAGE IF ONLY THEY'D SEIZE IT 9310290126 931029 BUSINESS BRIEF GIDDINGS & LEWIS INC MAJOR' MERCEDESBENZ ORDER IS PLACED FOR MACHINING GEAR GIDDINGS & LEWIS INC SAID IT RECEIVED A MAJOR ORDER FROM GERMANY'S MERCEDESBENZ AG FOR TWO AUTOMATEDMACHINING SYSTEMS FOR PRODUCTION OF MEDIUM AND HEAVY TRUCK ENGINE PARTS THE SYSTEMS REPRESENT THE LARGEST SINGLE ORDER FOR GIDDINGS & LEWIS IN EUROPE THE FOND DU LAC WIS MACHINETOOL MAKER SAID GIDDINGS SAID THAT THE ORDER THE VALUE OF WHICH WASN'T DISCLOSED FOLLOWS MERCEDESBENZ'S ANNOUNCEMENT THAT THE GERMAN CONCERN PLANS TO UPGRADE AND REFINE MANUFACTURING PROCESSES AT ALL OF ITS WORLDWIDE FACILITIES THE SYSTEMS ARE PART OF A PROGRAM AT MERCEDES' ENGINE PLANT IN MANNHEIM GERMANY THEY WILL BE PRODUCED AT THE GIDDINGS & LEWIS FACILITY IN WENDLINGEN GERMANY AND ARE SCHEDULED TO BE DELIVERED TO MANNHEIM IN LATE 1994 AND EARLY TO MID1995 9310290125 931029 LETTERS TO THE EDITOR THE GI BILL WAS NEVER A GRANT' WHATEVER THE MERITS OF SCHOOL CHOICE MAY BE DANIEL MCGROARTY IS WRONG TO COMPARE ELEMENTARY SCHOOL VOUCHERS WITH THE GI BILL A PRAYER FOR A BETTER EDUCATION EDITORIAL PAGE OCT 1 THIS OFTENUSED COMPARISON IS MISLEADING AND RIGHTFULLY OFFENSIVE TO VETERANS OF THE ARMED FORCES THE GI BILL WAS NOT A GRANT IT WAS PART OF THE INDUCEMENT TO JOIN UP AND MAINTAIN GOOD BEHAVIOR SO AS TO QUALIFY UPON DISCHARGE IT WAS PAID BY CHECK NOT A VOUCHER THE VETERAN WAS NOT REQUIRED TO SPEND THE MONEY FOR SCHOOL EXPENSES HE OR SHE WAS HOWEVER REQUIRED TO SATISFACTORILY PURSUE AN APPROVED EDUCATIONAL OR TRAINING OBJECTIVE UNDER THE REGULATIONS THE GI BILL IS CONSIDERED A GRANT BY THOSE WHO DID NOT LEAVE THEIR JOBS AND COMFORTS OF HOME TO SERVE THEIR COUNTRY BUT TO THOSE WHO SERVED IT WAS PARTIAL COMPENSATION FOR THE INCONVENIENCE THEY SUFFERED WHILE SERVING THEIR COUNTRY IN A TIME OF NEED 9310290124 931029 BUSINESS BRIEF PEOPLES ENERGY CORP IRS WILL PAY 28 MILLION IN SETTLEMENT OF TAX DISPUTE PEOPLES ENERGY CORP CHICAGO SAID THE INTERNAL REVENUE SERVICE AGREED TO PAY THE COMPANY ABOUT 28 MILLION TO SETTLE A DISPUTE OVER INCOME TAX RETURNS FOR FISCAL YEARS 1978 THROUGH 1990 THE UTILITY SAID ITS TWO SUBSIDIARIES PEOPLES GAS AND NORTH SHORE GAS HAVE RECEIVED REGULATORY AUTHORIZATION TO DEFER RECORDING THE INCOME IN FISCAL 1993 UNDER THIS REGULATORY ACCOUNTING TREATMENT EACH UTILITY WILL RECORD ITS PORTION OF THE IRS SETTLEMENT AMOUNT IN INCOME FOR FISCAL YEARS 1994 AND 1995 PEOPLES SAID BOTH UNITS HAVE INDICATED TO THE ILLINOIS COMMERCE COMMISSION THAT HAVING RECEIVED THIS ACCOUNTING AUTHORIZATION THEY WILL NOT FILE A REQUEST FOR AN INCREASE IN ITS BASE RATES FOR GAS SERVICE UNTIL AT LEAST DECEMBER 1994 THE EARLIEST THAT CUSTOMERS COULD SEE AN INCREASE IN BASE RATES WOULD BE THE FALL OF 1995 THE COMPANY SAID 9310290122 931029 BUSINESS BRIEF MBIA INC BOND INSURER SAYS ITS PROFIT ROSE 23 IN THIRD QUARTER MBIA INC SAID THIRDQUARTER EARNINGS INCREASED 23 AS ITS BOND INSURANCE BUSINESS CONTINUED TO SHOW ROBUST GROWTH THE ARMONK NY COMPANY REPORTED NET INCOME OF 598 MILLION OR 141 A SHARE COMPARED WITH 486 MILLION OR 119 A SHARE IN THE YEAREARLIER PERIOD REVENUE INCREASED 34 TO 1102 MILLION THE LATEST PERIOD INCLUDES A CHARGE OF 53 MILLION OR 12 CENTS A SHARE STEMMING FROM CHANGES IN FEDERAL TAX LAWS THE COMPANY SAID ITS EARNINGS AND GROWTH PROSPECTS REMAIN BRIGHT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MBIA CLOSED DOWN 2 AT 7150 AFTER TRADING AS HIGH AS 74 9310290121 931029 INTERNATIONAL BRIEF IMPERIAL CHEMICAL INDUSTRIES PLC PRETAX PROFIT CLIMBED 43 IN FIRST NINE MONTHS OF '93 IMPERIAL CHEMICAL INDUSTRIES PLC SAID ITS PRETAX PROFIT SURGED 43 IN THE FIRST NINE MONTHS AIDED BY THE BENEFITS OF RESTRUCTURING THE BRITISH CHEMICAL CONCERN'S PROFIT FROM CONTINUING OPERATIONS BEFORE TAX AND EXCEPTIONAL ITEMS REACHED 240 MILLION 355 MILLION UP FROM 168 MILLION A YEAR EARLIER NINEMONTH SALES CLIMBED 13 TO 635 BILLION FROM 564 BILLION THE RESULTS WERE CLOSELY WATCHED BY ANALYSTS AS THEY ARE THE FIRST SINCE ICI SPLIT OFF ITS PHARMACEUTICAL AND AGROCHEMICAL DIVISIONS TO CREATE ZENECA GROUP PLC ON JUNE 1 SWISS BANK CORP ANALYST RICHARD S HENDERSON SAID THE NINEMONTH PRETAX PROFIT WAS SOMEWHAT BETTER THAN EXPECTED 9310290120 931029 INTERNATIONAL BRIEF NEW WORLD DEVELOPMENT CO HONG KONG COMPANY'S NET SURGED 47 IN FISCAL YEAR NEW WORLD DEVELOPMENT CO SAID ITS NET INCOME SURGED 47 TO 346 BILLION HONG KONG DOLLARS US4476 MILLION IN THE YEAR ENDED JUNE 30 WELL ABOVE MARKET FORECASTS THE RESULT COMPARES WITH A PROFIT OF HK236 BILLION THE PREVIOUS YEAR OPERATING PROFIT CLIMBED 414 BILLION FROM HK286 BILLION THE PREVIOUS YEAR THE GROUP SAID ITS GROSS RENTAL PROFIT AMOUNTING TO HK128 BILLION CONTRIBUTED 22 OF THE YEAR'S OPERATING EARNINGS DURING THE YEAR NEW WORLD SAID SIX PROPERTY PROJECTS WERE SOLD OR COMPLETED THAT INCLUDED THE DISPOSAL OF THREE FLOORS OF THE CONVENTION PLAZA OFFICE TOWER AND 280 RESIDENTIAL UNITS OF CONVENTION PLAZA APARTMENTS ALONG THE WANCHAI WATERFRONT 9310290118 931029 NEWS CORP'S STAR TV DRAWS SOME STATIC BEIJING'S IRE TOPS LIST OF BROADCASTER'S TROUBLES BY SALLY D GOLL AND S KARENE WITCHER STAFF REPORTERS OF THE WALL STREET JOURNAL NEWS CORP CHAIRMAN RUPERT MURDOCH WAS HAILED AS A VISIONARY THREE MONTHS AGO WHEN HIS MEDIA COMPANY BOUGHT CONTROL OF STAR TV WHICH BEAMS TELEVISION PROGRAMS VIA SATELLITE TO HOMES ACROSS MOST OF ASIA AND THE MIDDLE EAST WHETHER THAT VISION ULTIMATELY WILL PAY OFF IS IMPOSSIBLE TO PREDICT WHAT IS CLEAR THOUGH IS THAT HONG KONGBASED STAR HAS SMACKED INTO A MADDENING SERIES OF OBSTACLES SINCE THE ACQUISITION FURTHER COMPLICATING WHAT WAS ALREADY A HIGHRISK VENTURE NEWS CORP IS BASED IN SYDNEY AUSTRALIA THE MOST WORRISOME PROBLEM IS THAT MR MURDOCH HAS PROVOKED THE ANGER OF CHINA'S GOVERNMENT EARLIER THIS MONTH IN WHAT WAS WIDELY VIEWED AS A REBUKE TO MR MURDOCH BEIJING ANNOUNCED RESTRICTIONS ON THE SALE AND OWNERSHIP OF SATELLITE DISHES IF THAT CRACKDOWN SUCCEEDS STAR AND OTHER SATELLITE BROADCASTERS WILL FIND IT MUCH HARDER TO TAP CHINA'S MARKET POTENTIALLY THE BIGGEST PRIZE IN ASIA MEANWHILE STAR IS BOGGED DOWN IN DISPUTES WITH ONE OF ITS MAIN PROGRAM SUPPLIERS AND WITH THE CABLE COMPANY THAT IS DUE TO DISTRIBUTE A NEW STAR PAYTV SERVICE IN HONG KONG STAR'S MANAGEMENT ALSO HAS HAD TO ACKNOWLEDGE THAT PLANS TO CREATE PAYTV SERVICES ELSEWHERE IN THE REGION WON'T PROCEED AS QUICKLY AS ORIGINALLY PLANNED THAT MEANS STAR WILL DEPEND ON ADVERTISING REVENUE ALONE FOR LONGER THAN EXPECTED YET ANOTHER CONCERN IS THAT ACCORDING TO INDUSTRY EXECUTIVES SATELLITE CAPACITY LINED UP BY STAR'S PREVIOUS MANAGEMENT HAS FALLEN INTO THE HANDS OF RIVALS NONE OF THESE PROBLEMS NECESSARILY SPELLS DOOM OF COURSE BUT THEY WILL MAKE IT HARDER FOR NEWS CORP TO TRANSFORM INTO A PROFITABLE INVESTMENT THE 525 MILLION IT PAID FOR A 636 STAKE IN STAR EVEN MR MURDOCH CONCEDES THAT BUYING THE 2 1/2YEAROLD BROADCASTER WAS VERY RISKY AT NEWS CORP'S ANNUAL MEETING EARLIER THIS MONTH HE SAID HE DIDN'T KNOW WHEN STAR MIGHT BECOME PROFITABLE LOSSES AND DEVELOPMENT SPENDING WILL EAT UP 50 MILLION TO 100 MILLION ANNUALLY FOR THE NEXT YEAR OR TWO HE WARNED AT THE SAME TIME MR MURDOCH PROCLAIMED STAR A HUGE OPPORTUNITY THAT MAY WELL DEVELOP INTO ONE OF THE BIGGEST THINGS WE HAVE FIRST THOUGH NEWS CORP HAS A LONG LIST OF NETTLESOME PROBLEMS TO SOLVE CHIEF AMONG THEM IS THE NEED TO SMOOTH RELATIONS WITH BEIJING OFFICIALS AND OTHER ASIAN LEADERS WHO DON'T NATURALLY SEE GLOBAL SATELLITE TV AS A BOON FOR MANKIND SHORTLY AFTER THE STAR PURCHASE WAS ANNOUNCED MALAYSIAN PRIME MINISTER MAHATHIR MOHAMAD WEIGHED IN WITH HIS DISPLEASURE WHY HAS MURDOCH BOUGHT A 64 STAKE OF THE NETWORK HE ASKED AT A NEWS CONFERENCE IF IT IS NOT TO CONTROL NEWS THAT WE ARE GOING TO RECEIVE THEN WHAT IS IT EVEN AS HIS AIDES TRIED TO DISPEL SUCH NOTIONS MR MURDOCH MADE A SPEECH AT A CONFERENCE IN LONDON TWO MONTHS AGO WARNING THAT ADVANCES IN TELECOMMUNICATIONS HAVE PROVED AN UNAMBIGUOUS THREAT TO TOTALITARIAN REGIMES EVERYWHERE IT WAS HARDLY THE KIND OF MESSAGE LIKELY TO GO DOWN WELL IN BEIJING SOME CHINA WATCHERS BELIEVE IT HELPED PUSH THE CHINESE GOVERNMENT INTO CRACKING DOWN ON THE UNCONTROLLED PROLIFERATION OF SATELLITE DISHES IN ANY CASE MR MURDOCH NOW FINDS HIMSELF IN THE AWKWARD POSITION OF HAVING TO REASSURE ASIAN LEADERS THAT STAR TV ISN'T OUT TO TOPPLE THEM WHATEVER HE MAY HAVE SUGGESTED IN LONDON EVEN WITHOUT THE RESTRICTIONS ON SATELLITE DISHES GETTING ALONG WITH BEIJING IS VITAL FOR INSTANCE STAR RELIES ON NUMBERS SUPPLIED BY THE CHINESE GOVERNMENT TO SUPPORT ITS CLAIM TO REACH 48 MILLION HOUSEHOLDS IN CHINA MORE THAN A THIRD OF THE ASIAWIDE AUDIENCE CLAIMED BY STAR WITHOUT BEIJING'S COOPERATION STAR IS LIKELY TO HAVE TROUBLE UPDATING THE VALIDATED VIEWING FIGURES IT NEEDS TO ATTRACT ADVERTISERS TO ITS CHANNELS DURING THIS YEAR'S FIRST HALF STAR'S CHINESELANGUAGE CHANNEL WAS ITS BIGGEST SOURCE OF REVENUE IN HONG KONG STAR IS BICKERING PUBLICLY WITH A KEY PARTNER WHARF CABLE A UNIT OF WHARF HOLDINGS LTD UNDER A PROVISION INCLUDED IN ITS LICENSE WHARF CABLE IS REQUIRED TO CARRY SEVEN STAR CHANNELS BUT NOT UNTIL THE TWO PARTIES AGREE ON TERMS ALTHOUGH STAR'S CHANNELS ARE SCHEDULED TO BEGIN APPEARING ON WHARF'S CABLE SERVICE SUNDAY THERE WAS STILL NO AGREEMENT ON TERMS AS OF LATE THURSDAY IF ONE ISN'T REACHED BY SUNDAY IT WILL BE UP TO HONG KONG'S GOVERNMENT TO DETERMINE THE TERMS FOR DISTRIBUTING THE CHANNELS HONG KONG IS A VITAL TESTING GROUND FOR STAR'S PAYTV SERVICE THOUGH TINY COMPARED WITH SUCH GIANTS AS CHINA AND INDIA HONG KONG IS ONE OF THE FEW MARKETS IN ASIA IN WHICH A BIG SHARE OF THE POPULATION CAN EASILY AFFORD PAY TV IT'S UNCLEAR WHEN STAR WILL BE ABLE TO LAUNCH A REGIONAL PAYTV SERVICE AND WHAT SHAPE IT WILL TAKE AT NEWS CORP'S ANNUAL MEETING MR MURDOCH CONFIRMED THAT THE LAUNCH WOULD COME IN MID1994 AT THE EARLIEST MEANWHILE STAR'S RELATIONS WITH BRITISH BROADCASTING CORP ONE OF ITS MAIN PROGRAM SUPPLIERS HAVE DETERIORATED THE TWO PARTIES ENDED UP IN A LONDON COURT EARLIER THIS MONTH AFTER BBC NOTIFIED STAR OF ITS INTENTION TO LAUNCH AN ARABICLANGUAGE SERVICE IN THE MIDDLE EAST WHICH WOULD REACH TERRITORY ALSO COVERED BY STAR THE HONG KONG BROADCASTER RESPONDED BY SAYING IT RESERVED THE RIGHT TO DROP BBC FROM ITS ROSTER OF CHANNELS STAR HAS SINCE RESCINDED THAT THREAT AND THE COURT IS TO DECIDE WHETHER THE TERMS OF BBC'S CONTRACT WITH STAR ALLOW THE BRITISH BROADCASTER TO START THE ARABIC SERVICE ALTHOUGH THE TIFF WITH BBC MAY SOON BE RESOLVED IT HIGHLIGHTS A SERIOUS RISK OTHER PROGRAM SUPPLIERS THAT NOW RELY ON STAR TO BEAM THEIR SHOWS THROUGHOUT ASIA COULD DECIDE TO FIND OTHER MEANS TO REACH THEIR AUDIENCES STAR ALSO DOESN'T HAVE AS MUCH SATELLITE CAPACITY AT ITS DISPOSAL AS PREVIOUSLY THOUGHT THE PREVIOUS MANAGEMENT HAD SAID PRIVATELY THAT STAR HAD SECURED OPTIONS ON 20 TRANSPONDERS OR TRANSMISSION CHANNELS ON A SATELLITE TO BE LAUNCHED BY A JOINT VENTURE BETWEEN HONG KONGBASED APT SATELLITE CO AND CHEUNG KONG HOLDINGS LTD BUT ACCORDING TO PEOPLE CLOSE TO THE SITUATION A RIVAL GROUP OF BROADCASTERS INCLUDING TURNER BROADCASTING SYSTEM INC OF THE US HAS REACHED A PRELIMINARY AGREEMENT TO LEASE THAT CAPACITY A SPOKESMAN FOR TURNER DECLINED TO COMMENT OBTAINING THAT CAPACITY WOULD EXTEND THE RIVAL GROUP'S BROADCASTING REACH TO INCLUDE ALL OF ASIA MAKING IT A MUCH TOUGHER COMPETITOR FOR STAR WHICH FOR NOW IS THE ONLY BROADCASTER WITH SUCH A WIDE REACH IN ASIA CRITICS SAY NEWS CORP COULD HAVE ANTICIPATED SOME OF THESE PROBLEMS HAD IT STUDIED STAR MORE THOROUGHLY BEFORE SEALING THE PURCHASE ACCORDING TO CURRENT AND FORMER STAR TV EXECUTIVES AND PEOPLE OUTSIDE THE COMPANY WHO HOLD CONTRACTS WITH STAR NEWS CORP PERFORMED ONLY A MINIMUM OF DUE DILIGENCE INVESTIGATION BEFORE BUYING STAR A SPOKESWOMAN FOR NEWS CORP REPLIES SIMPLY WE DID DUE DILIGENCE AMID ALL ITS OTHER HEADACHES STAR MUST CONTEND WITH THE NORMAL TURMOIL THAT ACCOMPANIES AN ABRUPT CHANGE OF MANAGEMENT SINCE THE PURCHASE IN LATE JULY SENIOR EXECUTIVES NUMBERCRUNCHERS SATELLITE EXPERTS AND OTHERS FROM ACROSS THE NEWS CORP EMPIRE HAVE DESCENDED UPON THE BROADCASTER'S HONG KONG HEADQUARTERS TO PICK OVER STAR'S BOOKS AND DEBATE STRATEGY 9310290117 931029 BUSINESS BRIEF ROLLINS ENVIRONMENTAL SERVICES INC FISCAL 4THQUARTER NET FELL SHARPLY ON MARKET SOFTNESS ROLLINS ENVIRONMENTAL SERVICES INC REPORTED A STEEP DROP IN FISCAL FOURTHQUARTER NET INCOME DUE TO CONTINUED SOFTNESS IN THE COMMERCIAL HAZARDOUS WASTE TREATMENT BUSINESS FOR THE QUARTER ENDED SEPT 30 NET INCOME FELL ABOUT 94 TO 520000 OR ONE CENT A SHARE FROM THE YEARAGO 91 MILLION OR 15 CENTS A SHARE REVENUE FOR THE QUARTER DECREASED ABOUT 19 TO 497 MILLION FROM 62 MILLION THE COMPANY OF WILMINGTON DEL HAD PREVIOUSLY NOTED THAT BECAUSE OF MARKET CONDITIONS THIS YEAR'S FOURTHQUARTER RESULTS WOULDN'T MATCH LAST YEAR'S FOR THE FISCAL YEAR NET INCOME DECLINED BY MORE THAN HALF TO 119 MILLION OR 20 CENTS A SHARE FROM THE YEARAGO 32 MILLION OR 53 CENTS A SHARE ROLLINS SPECIALIZES IN COMMERCIAL INCINERATION IN CHEMICAL WASTE TREATMENT AND DISPOSAL INDUSTRIES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ROLLINS SHARES CLOSED AT 5625 DOWN 125 CENTS 9310290116 931029 IT'S A DIRTY TRICK SOME FEEL THE WAY HALLOWEEN IS TREATED HOLIDAY FOR GHOSTS AND GOBLINS IS BEING BANNED BY SCHOOLS AS FEARS OF CULTISM MOUNT BY SUZANNE ALEXANDER AND ROBERT JOHNSON STAFF REPORTERS OF THE WALL STREET JOURNAL THERE WILL BE NO HALLOWEEN PARTIES JACKO'LANTERNS OR PAPER BLACK CATS THIS YEAR IN THE SCHOOLS OF SHELDON TEXAS THERE WILL BE NO HAUNTED HOUSE AT FAIRMOUNT ELEMENTARY SCHOOL IN CANTON OHIO NO HALLOWEEN CELEBRATION AT COOMBS MIDDLE SCHOOL IN BANNING CALIF NO HALLOWEEN PARTY AT THE GRADE SCHOOL IN PINE ISLAND FLA IN SCHOOL AFTER SCHOOL ACROSS THE COUNTRY HALLOWEEN IS BECOMING AN ENDANGERED HOLIDAY THE CHILDREN'S HALLOWEEN WE GREW UP WITH IS NO LONGER WITH US SAYS JAMES WILLIAMS PRESIDENT OF THE SHELDON INDEPENDENT SCHOOL DISTRICT BOARD THE HALLOWEEN BAN IN SHELDON A PINEY SUBURB OF HOUSTON UNDERSCORES A SPREADING BACKLASH AGAINST A HOLIDAY THAT SOME RELIGIOUS LEADERS SAY IS ROOTED IN SATANIC RITUAL AND OTHER CRITICS SAY HAS LOST WHATEVER INNOCENCE IT ONCE HAD MORE AND MORE SCHOOLS ARE LISTENING TO HALLOWEEN OBJECTIONS IMAGES OF EVIL AND VIOLENCE JUST CAN'T BE MADE LIGHT OF IN A BENIGN CULTURAL EVENT ANYMORE SAYS CHARLES HAYNES EXECUTIVE DIRECTOR OF THE FIRST LIBERTY INSTITUTE OF FAIRFAX VA WHICH STUDIES RELIGIOUS ISSUES IT'S GOING TO BE HARDER FOR SUPPORTERS OF HALLOWEEN TO DIG THEIR HEELS IN PROHALLOWEEN PARENTS AND STUDENTS PROTEST THAT THEIR VERSION OF THE HOLIDAY HAS BECOME A VICTIM OF SPORADIC TRICKORTREAT POISONINGS SATANIC RITES AND VANDALISM THAT USUALLY OCCUR BEYOND THE SCHOOLYARDS WHY PUNISH OUR CHILDREN FOR WHAT A FEW WEIRD PEOPLE DO ASKS SONDRA PEREZ A WAITRESS WHOSE THIRD GRADER AMBER WANTS TO WEAR HER CHEERLEADER COSTUME TO SHELDON ELEMENTARY SCHOOL TODAY SHE WANTS TO BE A CHEERLEADER TO PRETEND FOR JUST ONE DAY THAT ISN'T DEVIL WORSHIP SOME PARENTS IN THE 4000STUDENT SHELDON DISTRICT SAY THE HALLOWEEN BAN IS AN ABDICATION OF RESPONSIBILITY BY SCHOOL OFFICIALS THE SCHOOL SHOULD BE AT LEAST ONE SAFE PLACE WHERE CHILDREN CAN CELEBRATE HALLOWEEN WITH CONTROLS SAYS JULIETTE RANDLE WHOSE 10YEAROLD DAUGHTER KIMBERLY COMPLAINS I DON'T SEE WHY WE CAN'T DO IT WHEN THE ELEMENTARY SCHOOL IN FLORIDA'S PINE ISLAND REPLACED ITS HALLOWEEN PARTY WITH A FALL FESTIVAL TWO YEARS AGO AFTER PARENTS OBJECTED FOR RELIGIOUS REASONS EVERYONE WAS HAPPY EXCEPT THE CHILDREN THEIR COMPLAINTS RESULTED IN A COMMUNITY HALLOWEEN PARTY WHERE THE MASKS AND MAKEUP RETURNED JUNE HILDRETH WHOSE 11YEAROLD SON SEAN FAVORS DRESSING UP LIKE JASON THE MASS MURDERER OF FRIDAY THE 13TH MOVIE FAME IS ORGANIZING THIS YEAR'S PARTY I SEE NO PROBLEM WITH DRESSING UP AT HALLOWEEN I GOT TO DO IT AND MY SON WANTS TO DO IT OFFICIALS AT COOMBS MIDDLE SCHOOL IN BANNING CALIF REPLACED HALLOWEEN WITH READING IS FUNDAMENTAL DAY BUT THEY DID TRY TO KEEP SOME OF THE HOLIDAY'S SPIRIT STUDENTS CAN DRESS AS THEIR FAVORITE BOOK CHARACTERS AND ATTEND A DANCE THE OPPOSITION TO HALLOWEEN IS GROWING INCREASINGLY LOUDER PAMELA PARSONS PRESIDENT OF THE PARENTTEACHER ORGANIZATION AT FAIRMOUNT ELEMENTARY IN CANTON OHIO BELIEVES HALLOWEEN'S MAIN MEANING IS FOR SATANISTS PEOPLE SAY THAT HALLOWEEN DOESN'T MEAN ANYTHING TO KIDS BUT IT DOES MEAN SOMETHING TO A BIG GROUP OF WITCHES AND CULTISTS SHE SAYS WHAT WE DON'T REALIZE IS WE'RE SUPPORTING THEM AND THEY LOVE IT SHE PERSUADED THE SCHOOL TO BANISH ITS ANNUAL HAUNTED HOUSE BECAUSE IT WAS TOO DARK AND SPOOKY YET SOME ANTIHALLOWEEN ALARM SEEMS TO BE FOUNDED ON MERE RUMORS OF EVIL DEEDS LAST YEAR THEY WERE FINDING SLAIN CATS A MILE FROM OUR NEIGHBORHOOD MS PARSONS SAYS THE POLICE GAVE CREDIT TO A CULT THIS IS NEWS TO CANTON POLICE CAPT THOMAS REAM WHO DOESN'T REMEMBER ANY DEADCAT COMPLAINTS LAST YEAR MANY OF THE MOVES AGAINST HALLOWEEN CELEBRATIONS REFLECT THE RECENT INFLUENCE OF EVANGELICAL CHRISTIANITY ONE OF THE LARGEST CHRISTIANORIENTED EDUCATION GROUPS CITIZENS FOR EXCELLENCE IN EDUCATION BASED IN COSTA MESA CALIF DISTRIBUTES AN ANTIHALLOWEEN REPORT THAT CALLS JACKO'LANTERNS A SACRED IMAGE OF THE LORD OF THE DEAD SAYS THE BLACK CAT IS A LIVING TALISMAN OF WITCH POWER AND CLAIMS THAT THE WITCH'S BROOMSTICK IS A PHALLIC SYMBOL OF PAGAN RITUALS THE REPORT RECOMMENDS THAT CONCERNED PARENTS BE PRAYER WARRIORS BECAUSE A SPIRITUAL BATTLE IS RAGING ON THIS NIGHT AS COVENS OF WITCHES AND OTHER PAGAN RELIGIONS CALL FORTH THEIR DEMON SPIRITS THE ANTIHALLOWEEN CAUSE WAS PICKED UP IN SHELDON LAST YEAR BY THE REV CURT WILLIAMS A SOUTHERN BAPTIST MINISTER WHAT SET HIM OFF HE SAYS WAS A VISIT TO SHELDON HIGH SCHOOL TO REGISTER A HOMELESS BOY IN HIS CARE I SAW WITCHES AND THEIR CAULDRONS ON THE WALLS AND I ASKED A SECRETARY IF I COULD PUT JESUS UP THERE SHE SAID NO YOU CAN'T PROMOTE RELIGION HERE' WELL I'M NOT THE ACTIVIST TYPE BUT I KNEW I HAD TO DO SOMETHING HE SAYS MR WILLIAMS PRESENTED THE BOARD OF EDUCATION WITH A VIDEO PAGAN INVASION HALLOWEEN TRICK OR TREAT FEATURING AN INTERVIEW WITH A SELFDESCRIBED FORMER SATANIST WHO CLAIMS HE MURDERED A CHILD DURING A HALLOWEEN RITUAL THE SEVEN BOARD MEMBERS WHO ARE ELECTED BUT UNPAID VOTED UNANIMOUSLY IN JULY AGAINST HALLOWEEN OBSERVATIONS BUT FEW PARENTS NOTICED UNTIL SOME SCHOOLS STARTED WRITING THEM LETTERS ABOUT IT TWO WEEKS AGO HALLOWEEN PARTIES HAD BEEN SURGING IN POPULARITY WITH SOME SHELDON SCHOOLS PUTTING ON AS MANY AS 10 APIECE IN RECENT YEARS SAYS MR WILLIAMS THE BOARD'S PRESIDENT HE SAYS HE RECEIVED ONLY ONE PROTEST TO THE BAN A LETTER FROM A FIFTH GRADER WHO SAID HER MOTHER HAD ORDERED SPECIAL HAPPY HALLOWEEN PENCILS TO DISTRIBUTE TO CLASSMATES HE ADMITS THE PENCILS SEEM HARMLESS ENOUGH BUT HE STANDS BY THE BOARD'S RULING I'M UP FOR REELECTION IN MARCH IF HALLOWEEN DOES ME IN SOMEBODY ELSE CAN HAVE THE PROBLEM ALTHOUGH OPPOSITION TO THE SHELDON BAN HASN'T BEEN LOUD CONFLICTED FEELINGS RUN DEEP CYNTHIA LANGDON A SECRETARY AT SHELDON INTERMEDIATE SCHOOL SAYS HER 11YEAROLD DAUGHTER APRIL ASKED WHY CAN'T WE CARVE UP A PUMPKIN AT SCHOOL IT'S JUST A VEGETABLE MRS LANGDON WHO RELUCTANTLY AGREES WITH THE SCHOOL BOARD'S BAN SAYS IT SADDENS HER TO HAVE TO MAKE EXCUSES TO HER DAUGHTER WITH LITTLE CHILDREN HALLOWEEN IS A GOOD THING IT'S WHEN OLDER PEOPLE GET HOLD OF IT THAT SOMETHING GOES WRONG SHE SAYS JIM THOMPSON WHO AS PRINCIPAL OF THE DISTRICT'S ROYALWOOD ELEMENTARY SCHOOL IS ONE OF THOSE ASSIGNED TO ENFORCE THE PROHIBITION ADMITS HE IS ONE OF HIS NEIGHBORHOOD'S MOST ENTHUSIASTIC WELCOMERS OF TRICK OR TREATERS DESPITE THAT HE WARNS ABOUT THE EFFECTS OF THE HOLIDAY CULTISM IS EVERYWHERE NOW IT CAN ALL BE LINKED TO HALLOWEEN OF COURSE PLENTY OF PEOPLE STILL BELIEVE THAT CELEBRATING HALLOWEEN DERIVED FROM THE NOV 1 OBSERVATION OF ALL SAINTS' DAY IS NO MORE HARMFUL THAN WATCHING THE WIZARD OF OZ I THINK THERE'S TOO MUCH SEARCHING FOR CONSPIRACIES SAYS HOUSTON DAD NEIL BUSO I'M MUCH MORE CONCERNED ABOUT MY KIDS BEING EXPOSED TO CRIME DRUGS AND POLLUTION THAN SATANISTS HIS 12YEAROLD SON BENJAMIN PLANS TO TRICK OR TREAT THIS YEAR AS ROSS PEROT 9310290115 931029 BUSINESS BRIEF CONNER PERIPHERALS INC SCOTLAND PRODUCTION TO HALT CONCERN PLANS TO LAY OFF 200 CONNER PERIPHERALS INC REELING FROM AN INDUSTRY PRICE WAR SAID IT WILL SUSPEND MANUFACTURING IN ITS SCOTLAND PLANT THE SAN JOSE CALIF COMPUTER DISKDRIVE MAKER SAID THAT UNDER AN AGREEMENT WITH SCOTTISH AUTHORITIES IT WILL REVIEW ANNUALLY ITS MANUFACTURING NEEDS AND CAPACITY TO DECIDE WHETHER TO RESUME MANUFACTURING IN SCOTLAND CONNER SAID IT EXPECTS TO LAY OFF ABOUT 200 EMPLOYEES THERE AT THE END OF THE YEAR THE COMPANY SAID ITS MOVE IS PART OF THE RESTRUCTURING PLAN IT ANNOUNCED IN ITS THIRDQUARTER FINANCIAL REPORT IN WHICH IT REPORTED A NET LOSS OF 372 MILLION INCLUDING 330 MILLION IN RESTRUCTURING AND OTHER CHARGES AND WRITEDOWNS IT DECIDED TO SUSPEND MANUFACTURING IN SCOTLAND BECAUSE OF COMPETITION FROM PRODUCTS MADE OUTSIDE EUROPE THAT COST LESS AND HAVE DUTYFREE ACCESS TO EUROPEAN MARKETS 9310290114 931029 WHAT'S NEWS BUSINESS AND FINANCE THE ECONOMY GREW AT A 28 ANNUAL RATE IN THE THIRD QUARTER APPARENTLY SPURRED BY LOWER INTEREST RATES BUT THE GROWTH IN GDP IS STILL QUITE MODERATE STRONGER ECONOMIC DATA ARE LEADING MANY ECONOMISTS TO INCREASE THEIR ESTIMATES FOR FOURTHQUARTER GROWTH ALTHOUGH THEY AREN'T YET AS OPTIMISTIC ABOUT NEXT YEAR THE DOW JONES INDUSTRIALS HIT A RECORD CLIMBING 2320 POINTS TO 368786 AS STOCKS RALLIED ON THE GOVERNMENT'S FIGURES ON GDP KODAK'S STOCK JUMPED 4875 OR 83 TO 63625 AS INVESTORS REACTED TO THE HIRING OF MOTOROLA'S GEORGE FISHER HE HOPES TO PUSH KODAK TO THE FOREFRONT OF THE MULTIMEDIA REVOLUTION BY COMBINING DIGITAL IMAGING AND WIRELESS COMMUNICATION TECHNOLOGY GM REPORTED A SHARPLY NARROWER THIRDQUARTER LOSS AND DECLARED THAT IT CAN ACHIEVE A QUALIFIED BREAKEVEN PERFORMANCE IN NORTH AMERICAN VEHICLE OPERATIONS FOR THE YEAR DESPITE CHARGES ASSOCIATED WITH A LABOR PACT GM STOCK ROSE 2125 OR 53 TO 49 SALES OF STOCK AND BOND FUNDS FELL SHARPLY LAST MONTH A FUND GROUP SAID BUT SALES ARE REBOUNDING THIS MONTH REP DON SUNDQUIST WILL BENEFIT FROM THE TAX BREAK HE HELPED CLINCH FOR THE RESTAURANT INDUSTRY BECAUSE HE HAS A STAKE IN A CHAIN OF RESTAURANTS CLINTON'S HEALTH BILL COULD GIVE THE IRS BROAD NEW AUTHORITY TO DETERMINE WHO IS AN INDEPENDENT CONTRACTOR AIG'S EARNINGS ROSE 33 IN THE THIRD QUARTER BUT THE COMPANY TOOK A PRETAX CHARGE OF 90 MILLION FOR LOSSES INVOLVING ITS DERIVATIVES GROUP IT WAS THE SECOND STRAIGHT CHARGE TIED TO THE UNIT ONCE HEADED BY HOWARD SOSIN A HOUSE PANEL EXPRESSED SKEPTICISM ABOUT THE ABILITY OF FEDERAL AGENCIES TO REGULATE DERIVATIVES AND SUGGESTED NEW LAWS MAY BE NECESSARY TOYS R US PLANS TO GIVE CONSUMERS 491 OF COUPONS A MOVE THAT COULD TOUCH OFF A CHRISTMAS SEASON PRICE WAR WITH WALMART AND KMART BAYER'S MILES AGREED TO PLEAD GUILTY TO A PRICEFIXING CHARGE AND TO PAY 45 MILLION FOR DISCUSSING PRICES WITH RIVAL STEEL WOOL PAD MAKER DIAL GOLDMAN SACHS DISCRIMINATED AGAINST A FORMER EXECUTIVE WHEN IT DENIED HER A PROMOTION AND THEN FIRED HER BASED ON HER SEX A JURY DECIDED BUT THE FEDERAL JUDGE IN THE CASE SAID SHE MIGHT SET ASIDE THE JURY VERDICT NATIONSBANK NAMED KENNETH LEWIS PRESIDENT PUTTING HIM IN LINE TO SUCCEED HUGH MCCOLL JR AS CHAIRMAN AND CEO OF THE HOLDING COMPANY SALOMON BROTHERS ANNOUNCED A BOLD PLAN TO BUY BACK THE PIECES OF TREASURY BONDS THAT IT SOLD SEPARATELY TO THOUSANDS OF INDIVIDUAL INVESTORS SALOMON WILL THEN SELL THEM WHOLE CLINTON PLANS TO NOMINATE RICKI TIGERT A BANKING LAWYER TO HEAD THE FEDERAL DEPOSIT INSURANCE CORP ACCORDING TO ADMINISTRATION OFFICIALS VOLKSWAGEN THREATENED TO LAY OFF ONETHIRD OF ITS WORKERS BY 1996 UNLESS UNIONS AGREE TO FOURDAY WORKWEEKS THE GERMAN CAR MAKER CITED A DEPRESSED AUTO MARKET AND IMPROVEMENTS IN PRODUCTIVITY FOR ITS STAGGERING SURPLUS OF 30000 WORKERS TEXTRON NAMED LEWIS CAMPBELL PRESIDENT AND A DIRECTOR PUTTING THE FORMER GM MANAGER IN LINE TO SUCCEED THE CHAIRMAN AND CHIEF EXECUTIVE MAZDA SAID IT EXPECTS TO REPORT A LOSS FOR FISCAL 1995 BUT THE CAR MAKER SEES A PROFIT FOR THE FOLLOWING YEAR BONDS LEHMAN BROTHERS TREASURY INDEX 565262 UP 2421 COMMODITIES OIL 1737 A BARREL OFF 28 CENTS DOW JONES FUTURES INDEX 13040 UP 021 SPOT INDEX 11967 OFF 012 DOLLAR 10816 YEN OFF 056 16749 MARKS OFF 00046 9310290113 931029 PEPPERAND SALT THIS ADMINISTRATION'S TAX PROPOSALS SURE GET YOUR ATTENTION THEY'RE DESIGNED TO MAKE YOU STOP LOOK AND LOOSEN WHATEVER I MAY LACK IN TRANQUILITY GOOD HUMOR AND OBJECTIVITY I MORE THAN MAKE UP FOR IN CHILDREN SELFCLEANING ENVIRONMENTS THE NATURAL LOOK 9310290112 931029 BUSINESS BRIEF SPORT SUPPLY GROUP INC THIRD QUARTER'S NET IS SEEN BEATING ANALYSTS' ESTIMATES SPORT SUPPLY GROUP INC SAID IT EXPECTS TO REPORT THIRDQUARTER EARNINGS WELL ABOVE ANALYSTS' ESTIMATES OF 14 MILLION OR 40 CENTS A SHARE MICHAEL J BLUMENFELD CHAIRMAN OF THE DALLASBASED DIRECT MARKETER OF SPORTS EQUIPMENT SAID THE COMPANY'S PRIMARY COMPETITORS NEIGHBORHOOD SPORTINGGOODS STORES HAVE BEEN DECIMATED BY THE SUCCESS OF SPORTINGGOODS SUPERSTORES NO ONE ELSE IS CALLING ON OUR CUSTOMERS HE SAID SPORT SUPPLY SELLS TO INSTITUTIONAL BUYERS SUCH AS SCHOOLS CHURCHES AND FITNESS CLUBS MR BLUMENFELD SAID EARNINGS DUE NOV 4 WOULD BE MATERIALLY ABOVE ESTIMATES BUT DECLINED TO ELABORATE HE SAID REVENUE IS EXPECTED TO REACH A COMPANYRECORD 207 MILLION A YEAR EARLIER NET WAS 12 MILLION OR 33 CENTS A SHARE ON REVENUE OF 172 MILLION IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SPORT SUPPLY CLOSED AT 1875 A SHARE UP 75 CENTS 9310290111 931029 BUSINESS BRIEF NAVIGATORS GROUP INC COMPANY ENTERS AGREEMENT TO BUY SOMERSET FOR STOCK NAVIGATORS GROUP INC SAID IT ENTERED INTO A DEFINITIVE AGREEMENT TO ACQUIRE CLOSELY HELD SOMERSET COS FOR ALMOST 29 MILLION NAVIGATORS SHARES CURRENTLY VALUED AT 1035 MILLION THE INSURANCE HOLDING COMPANY SAID SOMERSET ALSO BASED IN NEW YORK CONSISTS OF EIGHT COMPANIES THAT PROVIDE INSURANCEUNDERWRITING MANAGEMENT SERVICES THE PROPOSED TRANSACTION IS EXPECTED TO CLOSE IN THE 1994 FIRST QUARTER NAVIGATORS SAID NAVIGATORS SHARES CLOSED IN NATIONAL OVERTHECOUNTER TRADING AT 36 BID OFF 2 9310290110 931029 BUSINESS BRIEF GRANCARE INC VALUE OF STOCK PURCHASE OF FIRM REVISED DOWNWARD GRANCARE INC WHICH AGREED IN AUGUST TO ACQUIRE COMPUPHARM INC SAID THE VALUE OF THE PROPOSED STOCK PURCHASE DROPPED TO ABOUT 54 MILLION UNDER REVISED TERMS UNDER THE ORIGINAL PACT GRANCARE OF CULVER CITY CALIF WAS TO HAVE PAID STOCK VALUED AT 61 MILLION THE PRICE WAS REDUCED AFTER COMPUPHARM REVISED DOWNWARD ITS FISCAL YEAR 1993 EARNINGS TO REFLECT OVERPAYMENTS FROM A STATE MEDICAID PROGRAM IN ADDITION WE FELT OUR STOCK WAS UNDERVALUED AND WANTED TO PEG THE PURCHASE PRICE TO A FIXED NUMBER OF SHARES RATHER THAN TO A FIXED STOCK VALUE SAID GENE E BURLESON GRANCARE PRESIDENT AND CHIEF EXECUTIVE OFFICER GRANCARE AN OPERATOR OF LONGTERM CARE FACILITIES HAS SAID THE ACQUISITION WOULD SIGNIFICANTLY EXPAND ITS PHARMACY OPERATIONS COMPUPHARM A CLOSELY HELD PROVIDER OF PHARMACY SERVICES IS BASED IN WHIPPANY NY 9310290109 931029 THE WALL STREET JOURNAL / NBC NEWS POLL WASHINGTON WIRE A WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER FOREIGNPOLICY SETBACKS DAMAGE CLINTON BADLY IN THE PUBLIC'S VIEW BY A STINGING 58 TO 33 AMERICANS DISAPPROVE OF THE PRESIDENT'S HANDLING OF FOREIGN POLICY IN A NEW WALL STREET JOURNAL/NBC NEWS POLL THAT IS A SHARP REVERSAL FROM A 47 TO 34 APPROVAL A MONTH AGO BEFORE BLOWUPS IN SOMALIA AND HAITI HIS BIGGER PROBLEM IS THAT BY 47 TO 14 THE PUBLIC THINKS HE IS SPENDING TOO MUCH TIME ON FOREIGN POLICY AND NOT ENOUGH ON DOMESTIC ISSUES CLINTON'S PROBLEMS STEM FROM MISCUES AND CIRCUMSTANCES BEYOND HIS CONTROL SAY PETER HART AND ROBERT TEETER WHO CONDUCTED THE POLL BY 2TO1 AMERICANS THINK THE US IS GENERALLY ON THE WRONG TRACK THE SHARE OF PEOPLE WHO VIEW CLINTON AS A TAXANDSPEND DEMOCRAT RISES TO 41 FROM 29 IN MARCH THOUGH 50 STILL SEE HIM AS A DIFFERENT KIND OF DEMOCRAT THE WHITE HOUSE BEGINS AN INTERNAL REVIEW OF THE DECISIONMAKING PROCESS AMID RUMORS THAT CHIEF OF STAFF MCLARTY MAY MOVE TO A CABINET POST NONMILITARY ACTIONS ARE MULLED TO DEAL WITH HAITI AND SOMALIA THE US AND ITS ALLIES EXPLORE NEW SANCTIONS ON HAITI THEY RANGE FROM A FULL COMMERCIAL EMBARGO THAT HAITI'S ARISTIDE CALLED FOR YESTERDAY TO A WORLDWIDE FREEZE ON PERSONAL ASSETS OF HAITIAN MILITARY LEADERS SIXTY PERCENT OF THOSE POLLED AGREE WITH CLINTON'S DECISION TO SEND WARSHIPS TO HAITI TO BLOCK TRADE THE US PUSHES FOR EARLY ESTABLISHMENT OF AN ALLAFRICAN COMMISSION TO INVESTIGATE THE KILLINGS OF UN PEACEKEEPERS IN SOMALIA THE PANEL WOULD BE A WAY TO SET ASIDE THE NEED TO CAPTURE WARLORD AIDID SAYS A US OFFICIAL AND COULD ACCELERATE THE US WITHDRAWAL DATE OF MARCH 31 IN THE POLL 62 OF AMERICANS FEAR SOMALIA COULD TURN INTO ANOTHER VIETNAM FOR THE US BUYING THE MESSAGE ARGUMENTS BY TRADEPACT BACKERS WIN WIDER ACCEPTANCE SHARPLY FEWER AMERICANS THINK MANUFACTURING JOBS WILL MOVE TO MEXICO IF THE NORTH AMERICAN FREE TRADE AGREEMENT IS APPROVED IN THE POLL THE PUBLIC BY 49 TO 40 STILL THINKS THAT WOULD HAPPEN BUT 74 THOUGHT SO A MONTH AGO SOME 42 THINK MORE JOBS WOULD BE GAINED THAN LOST NEARLY MATCHING THE 45 WHO DISAGREE CLINTON PLANS MORE PUBLIC EVENTS PERHAPS INCLUDING TV INTERVIEWS TO PUSH FOR THE PACT US OFFICIALS COMPLAIN THAT THEY HAVE HAD TROUBLE GETTING COMPANIES TO RAISE 10 MILLION FOR PRONAFTA CAMPAIGNING ONE US OFFICIAL SAYS BACKERS FACE HAND TO HAND COMBAT TO WIN THE UPHILL FIGHT ON NEXT MONTH'S VOTE A THIRD OF AMERICANS OPPOSE THE TRADE PACT BUT SUPPORT RISES A BIT FROM LAST MONTH TO 29 34 STILL HAVE NO OPINION PEROT SINKS IN PUBLIC ESTEEM ONLY 30 OF AMERICANS NOW HAVE A POSITIVE VIEW OF THE TEXAN DOWN FROM 47 IN MARCH MORE THAN 50 DON'T WANT HIM TO RUN FOR PRESIDENT IN 1996 ALL THREE MAJOR TV NETWORKS REFUSE TO SELL TIME FOR HIS ANTINAFTA SHOW WHICH RUNS ON LOCAL STATIONS IT'S THE FIRST TIME THEY'VE REFUSED TO TAKE MY MONEY PEROT SAYS CRIME FEARS RISE AMONG AMERICANS REFORMING US LAWS ON CRIME IS CITED BY 50 AS AN ISSUE THAT WASHINGTON SHOULD MAKE A TOP PRIORITY UP FROM 44 IN LAST MONTH'S POLL POLICE OFFICIALS COMPLAIN THAT CLINTON'S PLAN TO PUT MORE COPS ON THE STREET WITH A POLICECORPS PROGRAM WOULDN'T PROVIDE FUNDS FOR LOCAL GOVERNMENTS TO HIRE THE GRADUATES REINVENTING GOVERNMENT TO MAKE IT MORE EFFICIENT SHOULD BE A PRIORITY FOR CLINTON AND CONGRESS 60 OF THOSE POLLED SAY SOME 48 AGREE THAT GOVERNMENT SERVICES CAN BE PROVIDED MORE EFFICIENTLY BUT 46 SAY GOVERNMENT WILL NEVER BE ABLE TO PROVIDE SERVICES WITHOUT A LOT OF WASTE ACTION DRAGS ON CAMPAIGNFINANCE REFORM AS SENIOR HOUSE DEMOCRATS AVOID MOVING LEGISLATION IN THE POLL AMERICANS BY 41 TO 31 FAVOR USING PUBLIC FUNDS TO PAY FOR PART OF CONGRESSIONAL CAMPAIGNS IF A LID IS PUT ON POLITICAL DONATIONS BUT BY 55 TO 34 THEY DOUBT SUCH PLANS WOULD CUT THE INFLUENCE OF SPECIAL INTERESTS DOUBTS PERSIST ABOUT A STRONGER ECONOMY AND CUTTING THE BUDGET DEFICIT EVEN WITH IMPROVING ECONOMIC FIGURES SUCH AS YESTERDAY'S REPORT OF MODEST THIRDQUARTER GROWTH ONLY 21 OF AMERICANS EXPECT THE ECONOMY TO GET BETTER OVER THE NEXT YEAR SOME 27 EXPECT THE ECONOMY TO GET WORSE THE REST THINK IT WILL STAY ABOUT THE SAME UNEMPLOYMENT CITED BY 43 IS THE TOP ECONOMIC WORRY DESPITE CLINTON'S POLITICALLY COSTLY TAX FIGHT TO TRIM THE DEFICIT NEARLY HALF OF THOSE POLLED SAY HE IS DOING A POOR JOB OF REDUCING RED INK CLINTONITES PREPARE TO FIGHT A BALANCEDBUDGET AMENDMENT WHICH COULD WIN THE NEEDED TWOTHIRDS VOTE IN THE SENATE THIS FALL THEY REVIVE A MILDER ALTERNATIVE THAT WOULD BOOST THE PRESIDENT'S POWER TO FORCE CONGRESS TO RETHINK SPECIFIC SPENDING OF THOSE POLLED 55 SAY DEALING WITH THE ECONOMY AS THE MOST IMPORTANT ISSUE IN JUDGING CLINTON'S LEADERSHIP MINOR MEMOS OUT OF A LIST OF FIVE HIGHLY VISIBLE PUBLIC FIGURES AMERICANS SAY THEY WOULD MOST LIKE TO TELL OH SHUT UP TO JESSE JACKSON AND RUSH LIMBAUGH GORE'S POSITIVE RATING DIPS TO 42 THE LOWEST SINCE HE TOOK OFFICE BUT IT REMAINS FAR ABOVE ANY OF QUAYLE'S WHOSE RATING CONTINUES TO SLIP EVEN THOUGH HE IS OUT OF OFFICE 9310290108 931029 BUSINESS BRIEF GLENDALE FEDERAL BANK LOSS IN FISCAL FIRST QUARTER WIDENED TO 199 MILLION GLENDALE FEDERAL BANK STRUGGLING TO BECOME A VIABLE INSTITUTION AFTER ITS RECENT RECAPITALIZATION REPORTED A WIDER NET LOSS IN ITS FISCAL FIRST QUARTER THE GLENDALE CALIF BANK SAID ITS NET LOSS FOR THE QUARTER ENDED SEPT 30 WAS 199 MILLION OR 63 CENTS A SHARE COMPARED WITH 168 MILLION IN THE YEAREARLIER QUARTER GLENDALE DIDN'T GIVE PERSHARE FIGURES FOR THE EARLIER QUARTER BECAUSE IT SAID CHANGES IN THE BANK'S CAPITAL STRUCTURE MAKE THE COMPARISON NOT MEANINGFUL THE LATEST QUARTER'S RESULTS INCLUDE AN EXTRAORDINARY GAIN OF 141 MILLION FROM AN EXCHANGE OF CONVERTIBLE DEBENTURES FOR COMMON STOCK AS PART OF THE RECAPITALIZATION THE YEAREARLIER QUARTER INCLUDED A GAIN OF 354 MILLION FROM THE SALE OF MORTGAGEBACKED SECURITIES AND A 41 MILLION EXTRAORDINARY LOSS FROM THE PREPAYMENT OF CERTAIN BORROWINGS NONPERFORMING ASSETS AND RESTRUCTURED LOANS TOTALED 905 MILLION OR 504 OF TOTAL ASSETS AT THE END OF THE LATEST QUARTER THAT WAS UP FROM 8901 MILLION OR 499 OF ASSETS IN THE YEARAGO QUARTER BUT DOWN FROM A PEAK OF 102 BILLION OR 570 OF TOTAL ASSETS LAST FEBRUARY 9310290107 931029 BUSINESS BRIEF SMITHKLINE BEECHAM PLC PLAN SET TO PAY 300 MILLION TO CONSOLIDATE R&D SITES SMITHKLINE BEECHAM PLC SAID IT PLANS TO SPEND ABOUT 300 MILLION TO CONSOLIDATE MOST OF ITS BRITISH DRUG RESEARCH AND DEVELOPMENT IN HARLOW ESSEX THE DRUG AND HEALTHCARE CONSUMER PRODUCTS COMPANY SAID NO NEW CONSTRUCTION WILL BE INVOLVED RATHER IT AGREED TO BUY A 40ACRE SITE OF BRITISH PETROLEUM CO'S FORMER MARITIME HEADQUARTERS IN HARLOW IT SAID THE ACQUISITION WILL ENABLE IT TO CONSOLIDATE ITS RESEARCH AND DEVELOPMENT INTO THREE SITES FROM THE CURRENT SEVEN BY 1997 AND THAT THERE IS ENOUGH LAND TO MOVE ALL RESEARCH INTO HARLOW THE OTHER SITES ARE TONBRIDGE AND THE FRYTHE THE COMPANY SAID THE MOVE TO FEWER LOCATIONS SHOULD ENHANCE EFFICIENCY AND LOWER COSTS A SPOKESWOMAN SAID THE COMPANY HAS NO PLANS TO REDUCE STAFF BUT EXPECTS SOME ATTRITION FROM THE MOVE 9310290106 931029 BUSINESS BRIEF PROVIDENT LIFE & ACCIDENT CO CHARGE CITED FOR LOSS OF 241 MILLION IN 3RD PERIOD PROVIDENT LIFE & ACCIDENT CO OF AMERICA POSTED A 241 MILLION THIRDQUARTER LOSS BECAUSE OF A CHARGE RELATED TO INDIVIDUAL DISABILITY INSURANCE POLICIES SOLD DURING THE 1980S THE CHARGE OF 275 MILLION REPRESENTS AN EFFORT TO PUT LOSSES ON THOSE POLICIES FIRMLY IN THE PAST SO FUTURE EARNINGS CAN BETTER REFLECT THE TRUE EARNINGS OF THE COMPANY A SPOKESMAN SAID THE ANNOUNCEMENT WHICH CAME AFTER THE STOCK MARKET CLOSED PROMPTED AM BEST CO TO PUT THE CLAIMSPAYING ABILITY OF PROVIDENT IN CHATTANOOGA TENN ON REVIEW FOR A POSSIBLE DOWNGRADE AM BEST NOW RATES THE COMPANY A PLUS ITS SECONDHIGHEST RATING THE STOCK CLOSED AT 2925 A SHARE UP 375 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE LOSS OF 241 MILLION OR 541 A SHARE COMPARES WITH YEAREARLIER PROFIT OF 305 MILLION OR 68 CENTS A SHARE REVENUE FELL 3 TO 7193 IN THE QUARTER FROM 7411 MILLION 9310290105 931029 BUSINESS BRIEF WELLCOME PLC ANNUAL EARNINGS ROSE 32 STOCK FELL ON ZOVIRAX SALES WELLCOME PLC REPORTED A 32 SURGE IN PRETAX PROFIT FOR THE YEAR ENDED AUG 31 BUT JITTERS OVER RELATIVELY SLUGGISH SECONDHALF SALES OF ITS FLAGSHIP HERPES DRUG ZOVIRAX SENT THE BRITISH DRUG MAKER'S STOCK PLUMMETING 11 THE STOCK FELL 88 PENCE TO 715 PENCE 1058 IN HEAVY TRADING IN LONDON FOR THE FULL YEAR PRETAX PROFIT ROSE TO 667 MILLION 9875 MILLION FROM 505 MILLION BUT THE EARNINGS WERE BALLOONED BY CURRENCY FLUCTUATIONS UNDERLYING PRETAX PROFIT GROWTH WAS A SLIMMER 9 THE COMPANY SAID EARNINGS INCLUDED A 17 MILLION ONETIME GAIN FROM THE RELEASE OF PROVISIONS MADE IN PREVIOUS YEARS AGAINST EXPECTED COSTS RELATED TO DISPOSALS OF NONCORE BUSINESSES WELLCOME SAID ITS OVERALL SALES GROWTH WAS 20 BUT MINUS THE EXCHANGERATE EFFECT IT WAS 7 MEANWHILE DIRECTORS PROPOSED A 33 BOOST OF THE ANNUAL DIVIDEND TO 173 PENCE FROM 13 PENCE A YEAR EARLIER 9310290104 931029 BUSINESS BRIEF IMPERIAL HOLLY CORP SUGAR PROCESSOR CUTS PAYOUT BY TWOTHIRDS SETS LAYOFFS IMPERIAL HOLLY CORP STUNG BY LOWER SUGAR PRICES CUT ITS DIVIDEND BY TWOTHIRDS AND LAID OFF 29 WORKERS IN THE FACE OF A MUCH WIDER FISCAL SECONDQUARTER LOSS THE SUGAR LAND TEXAS SUGAR PROCESSOR POSTED A NET LOSS OF 53 MILLION OR 52 CENTS A SHARE FOR THE QUARTER ENDED SEPT 30 THAT COMPARED WITH A LOSS OF 533000 OR FIVE CENTS A SHARE A YEAR EARLIER REVENUE FELL NEARLY 6 TO 1648 MILLION THE LATEST LOSS INCLUDED A CHARGE OF 925000 TO COVER THE WORK FORCE REDUCTION AS WELL AS AN 872000 CHARGE RELATING TO AN INCREASE IN CORPORATE INCOME TAX RATES THE LOSS WHICH WAS WORSE THAN WALL STREET HAD EXPECTED SENT IMPERIAL HOLLY DOWN 1375 OR 13 TO 950 IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING THE COMPANY SAID ITS DIVIDEND CUT TO FOUR CENTS A SHARE FROM 12 CENTS WILL SAVE IT ABOUT 33 MILLION A YEAR IMPERIAL HOLLY SAID IT IS TAKING OTHER COSTCUTTING STEPS THAT ARE EXPECTED TO SAVE IT AN ADDITIONAL 5 MILLION A YEAR BY FISCAL 1995 9310290103 931029 BUSINESS BRIEF BANK OF BOSTON CORP THIRDQUARTER EARNINGS FELL DUE TO COSTS OF ACQUISITION BANK OF BOSTON CORP REPORTED NET INCOME FOR THE THIRD QUARTER OF 414 MILLION OR 30 CENTS A SHARE AFTER RESTRUCTURING AND ACQUISITIONRELATED CHARGES COMPARED WITH YEARAGO NET OF 739 MILLION OR 65 CENTS A SHARE AFTER AN EXTRAORDINARY CREDIT EQUAL TO 18 CENTS A SHARE LAST YEAR'S RESULTS WERE RESTATED FOR THE EFFECT OF ACQUISITIONS EXCLUDING THE CHARGES IN THE LATEST QUARTER EARNINGS ROSE TO 98 MILLION OR 82 CENTS A SHARE ON A FULLY DILUTED BASIS THE RESULTS CONTINUE A STRONG TURNAROUND AT NEW ENGLAND'S SECOND LARGEST BANK THE ACQUISITIONRELATED CHARGE THIS YEAR AND RESTATEMENT A YEAR AGO REFLECT THE COMPLETION OF BANK OF BOSTON'S ACQUISITIONS OF MULTIBANK FINANCIAL CORP AND SOCIETY FOR SAVINGS BANCORP THE PURCHASES ADDED 48 BILLION IN ASSETS BRINGING BANK OF BOSTON'S TOTAL ASSETS TO 392 BILLION AT SEPT 30 BANK OF BOSTON ALSO REACHED AN AGREEMENT IN THE THIRD QUARTER TO ACQUIRE THE 14 BILLIONASSET BANKWORCESTER WORCESTER MASS 9310290102 931029 INTERNATIONAL BRIEF QUEENS MOAT HOUSES PLC HOTEL CONCERN SELLS UNIT IN A MOVE TO RESTRUCTURE QUEENS MOAT HOUSES PLC LONDON THE FINANCIALLY TROUBLED UK HOTEL AND LEISURE INDUSTRY CONCERN SAID THAT IT HAS SOLD ITS QUEENS MOAT LEISURE LTD UNIT THE SALE OF QML'S SHARE CAPITAL FOR ABOUT 67 MILLION 99 MILLION IS A POSITIVE STEP IN THE GROUP'S RESTRUCTURING IT SAID IN A NEWS RELEASE THE NAME OF THE PURCHASER IS NOT BEING DISCLOSED QUEENS MOAT HOUSES SAID HOWEVER THAT THE BUYER IS A COMPANY IN WHICH THE CURRENT MANAGEMENT OF QUEENS MOAT LEISURE HAS A SIGNIFICANT INTEREST QUEENS MOAT'S SHARES WERE SUSPENDED FROM TRADING ON THE LONDON STOCK EXCHANGE ON MARCH 31 WHEN THE COMPANY FOUND IT COULDN'T MEET BANK PAYMENTS 9310290101 931029 BUSINESS BRIEF ALLIED RESEARCH CORP STOCK FALLS SHARPLY ON NEWS OF ACQUISITION'S COLLAPSE ALLIED RESEARCH CORP'S STOCK PLUNGED ON WORD THAT AN ACQUISITION BY FIRST ALLIED CORP FELL THROUGH AN ALLIED RESEARCH SPOKESMAN SAID THE COMPANY IS NO LONGER FOR SALE THE VIENNA VA MAKER OF WEAPONS SYSTEMS SAID FIRST ALLIED DIDN'T COMPLETE CERTAIN REVIEWS BEFORE A WEDNESDAY DEADLINE ALLIED RESEARCH SAID IT AGREED TO AN EXTENSION BUT SOUGHT ASSURANCES INCLUDING A 1 MILLION GOODFAITH DEPOSIT AND THAT FIRST ALLIED'S REFUSAL TO AGREE TO THE DEPOSIT ANNULLED THE AGREEMENT FIRST ALLIED A PRIVATE INVESTMENT FIRM IN ROCHESTER NY IS OWNED BY MALCOLM GLAZER AND HIS FAMILY WHICH TOGETHER OWN ABOUT 9 OF ALLIED RESEARCH'S COMMON STOCK IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION MR GLAZER CONFIRMED THAT THE DEAL FELL THROUGH BECAUSE FIRST ALLIED REFUSED TO PAY THE DEPOSIT IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE ALLIED RESEARCH FELL 18 CLOSING AT 1125 A SHARE DOWN 250 9310290100 931029 UAL AND DELTA POST BIG GAINS IN LATEST PERIOD AIRLINES' SOLID RESULTS SHOW INDUSTRY IS RECOVERING LOWER COSTS AID PROFITS BY MICHAEL J MCCARTHY AND BRIDGET O'BRIAN STAFF REPORTERS OF THE WALL STREET JOURNAL UAL CORP AND DELTA AIR LINES POSTED STRONG QUARTERLY PROFITS CONFIRMING THAT THE AIRLINE INDUSTRY IS IN A MILD IF PRECARIOUS RECOVERY BUT DESPITE EXTENSIVE COSTCUTTING MEASURES THAT BORE FRUIT IN THE LATEST PERIOD UAL SAID IT EXPECTS A LOSS IN THE FOURTH QUARTER AND FOR THE FULL YEAR AND DELTA SAID IT PLANS TO TAKE A CHARGE OF ABOUT 100 MILLION IN ITS FISCAL SECOND QUARTER ENDING DEC 31 TO OFFER EARLY RETIREMENT TO SOME 1400 EMPLOYEES UAL THE PARENT OF UNITED AIRLINES HAD THIRDQUARTER NET OF 149 MILLION OR 574 A SHARE UP FROM THE 6 MILLION OR 27 CENTS A SHARE REPORTED A YEAR EARLIER THE LATEST PERIOD REFLECTED A 59 MILLION PRETAX WRITEDOWN FOR RETIRED AIRCRAFT AND A 44 MILLION CREDIT RELATED TO A PENSION SETTLEMENT THE HUGE JUMP IN NET INCOME WAS MAINLY DUE TO THE CARRIER REINING IN OPERATING COSTS REVENUE FOR UAL WHICH IS BASED IN CHICAGO ROSE 12 LARGELY ON THE STRENGTH OF THE CARRIER'S LONGHAUL ROUTES TO 399 BILLION FROM 358 BILLION FOR THE FISCAL FIRST QUARTER ENDED SEPT 30 DELTA POSTED VASTLY IMPROVED RESULTS WITH NET INCOME OF 604 MILLION OR 65 CENTS A SHARE COMPARED WITH A NET LOSS OF 1252 MILLION OR 307 A SHARE A YEAR EARLIER REVENUE FOR THE ATLANTA COMPANY INCREASED 5 TO 321 BILLION FROM 306 BILLION BOTH COMPANIES ANNOUNCED THEIR RESULTS DURING TRADING IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING UAL'S STRONGERTHANEXPECTED PROFIT PROPELLED THE STOCK 6 A SHARE TO 15275 WHILE DELTA CLIMBED 1 TO 5825 STABLE PRICING AS WELL AS COST AND WORKFORCE REDUCTIONS RETURNED THE OVERALL INDUSTRY TO PROFITABILITY IN THE THIRD PERIOD TRADITIONALLY THE AIRLINES' STRONGEST MARKING THE INDUSTRY'S FIRST PROFITABLE QUARTER IN TWO YEARS STILL BOTH COMPANIES HAVE LONGERTERM PROBLEMS DELTA FACES AN UPHILL STRUGGLE TO GET ITS TRANSATLANTIC OPERATIONS INTO THE BLACK AND TO PERSUADE ITS PILOTS TO TAKE A COMPANYWIDE 5 PAY CUT THAT OTHER WORKERS ALREADY HAVE ACCEPTED THE PILOTS BY FAR THE LARGER OF DELTA'S TWO UNIONS SAY TALKS BROKE DOWN IN THE SPRING AFTER THE UNION MADE A COUNTERPROPOSAL MEANWHILE UNITED IS GRAPPLING WITH HOW TO FIX ITS SHORTERHAUL OPERATIONS WHICH PRODUCED A THIRDQUARTER OPERATING LOSS THE AIRLINE HAS BEEN IN INTENSE DISCUSSIONS WITH A UNION COALITION SEEKING TO ACQUIRE A MAJORITY STAKE IN UAL IN EXCHANGE FOR SOME 4 BILLION IN WAGE AND BENEFIT CONCESSIONS THE NEGOTIATIONS RECENTLY HAVE CENTERED ON HOW UNITED CAN CREATE A LOWERCOST LOWERFARE AIRLINE THAT CAN COMPETE MORE EFFECTIVELY AGAINST RIVAL UPSTARTS ON SHORTER FLIGHTS WITH A NOV 13 DEADLINE LOOMING FOR A UNIONCOMPANY AGREEMENT THE TALKS ARE SCHEDULED TO CONTINUE THROUGH THE WEEKEND THE RECESSION DISCIPLINED THE COST STRUCTURE OF THESE LARGER INEFFICIENT OPERATORS SAID KEVIN MURPHY AN AIRLINE ANALYST WITH MORGAN STANLEY & CO BUT THE HEAT IS STILL ON THE LABOR UNIONS TO COME THROUGH WITH WAGE OR WORKRULE CONCESSIONS THAT WILL FURTHER TRIM COSTS HE ADDED UNITED'S REVENUE GAINS PROVIDED ADDITIONAL EVIDENCE OF A STRENGTHENING IN TRANSPACIFIC AIR TRAVEL WINGS HOLDINGS INC'S NORTHWEST AIRLINES ANOTHER MAJOR PLAYER IN THE PACIFIC EARLIER THIS MONTH REPORTED STRONGER TRAFFIC IN THE REGION POTENTIALLY THE MOST LUCRATIVE AIRLINE MARKET IN THE WORLD A UNITED SPOKESMAN SAID THE AIRLINE HAS SEEN A CONSIDERABLE PICKUP IN FLIGHTS FROM THE US TO JAPAN UAL WOULDN'T QUANTIFY THE SIZE OF THE EXPECTED LOSS FOR THE FOURTH QUARTER OR FOR 1993 IN THE SEASONALLY SLOW FOURTH QUARTER MOST CARRIERS ARE EXPECTED TO BE BARELY PROFITABLE SAMUEL BUTTRICK A KIDDER PEABODY & CO ANALYST ESTIMATES THE AIRLINES WILL PRODUCE ROUGHLY BREAKEVEN OPERATING RESULTS IN THE FINAL PERIOD OF THE YEAR COMPARED WITH A 950 MILLION OPERATING LOSS IN THE 1992 FOURTH QUARTER SEPARATELY THE AIR LINE PILOTS ASSOCIATION WHICH REPRESENTS UNITED'S PILOTS SAID IT FILED A SUIT AGAINST UAL OVER ITS RECENT CODESHARING AGREEMENT WITH LUFTHANSA ARGUING THAT IT VIOLATES UNITED PILOT CONTRACTS CODE SHARING INVOLVES THE JOINT USE OF TWO AIRLINES' CODES IN COMPUTER RESERVATION SYSTEMS A UAL SPOKESMAN SAID THE COMPANY HADN'T BEEN SERVED WITH THE SUIT AND ADDED THAT IT HAS HAD BENEFICIAL CODESHARING PACTS WITH OTHER CARRIERS 9310290099 931029 SEC MAY FILE CIVIL COUNTS IN PRUDENTIAL UNIT CASE NEW YORK THE SECURITIES AND EXCHANGE COMMISSION IS EXPECTED TO FILE CIVIL CHARGES ALLEGING THAT AS MANY AS 15 CURRENT AND FORMER PRUDENTIAL SECURITIES INC EXECUTIVES FAILED TO SUPERVISE WAYWARD BROKERS AT THE BIG SECURITIES FIRM PEOPLE FAMILIAR WITH THE CASE SAID AMONG INDIVIDUALS BEING INVESTIGATED ARE TWO FORMER BROKERAGE CHIEFS AT THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT THE PEOPLE SAID THE ACTIVITIES OF AS MANY AS FIVE CURRENT PRUDENTIAL SECURITIES EMPLOYEES ALSO ARE BEING INVESTIGATED NONE OF WHOM IS IN SENIOR MANAGEMENT THE INVESTIGATION OF THE FORMER AND CURRENT EXECUTIVES STEMS FROM A BROADER PROBE OF PRUDENTIAL THE NATION'S FOURTHLARGEST BROKERAGE FIRM LAST WEEK THE SEC ALONG WITH STATE REGULATORS ACCUSED PRUDENTIAL OF MISLEADING INVESTORS INTO BUYING MORE THAN 7 BILLION OF LIMITED PARTNERSHIPS DURING THE 1980S IN A SETTLEMENT PRUDENTIAL AGREED TO PAY AT LEAST 371 MILLION IN FINES AND RESTITUTION TO DEFRAUDED INVESTORS BUT NEITHER ADMITTED NOR DENIED THE ALLEGATIONS SO FAR NO INDIVIDUALS HAVE BEEN FORMALLY ACCUSED OF WRONGDOING SEC OFFICIALS COULDN'T BE REACHED TO COMMENT A PRUDENTIAL SECURITIES SPOKESMAN DECLINED TO COMMENT 9310290098 931029 CAR TROUBLE OLDER DRIVERS POSE GROWING RISK ON ROADS AS THEIR NUMBERS RISE THEY CRASH MORE THAN MANY YET TAKING AWAY WHEELS LEADS TO ISOLATION ANGER A MAN RUNS OVER HIS WIFE BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL BY THE YEAR 2020 THE NUMBER OF LICENSED DRIVERS OVER AGE 75 WILL MORE THAN DOUBLE TO 175 MILLION OF THESE WELL OVER HALF WILL SUFFER FROM CATARACTS DEMENTIA OR NERVOUS DISORDERS THAT CAN MAKE THEIR HANDS TREMBLE ON STEERING WHEELS EIGHTY PERCENT WILL TAKE ONE OR MORE PRESCRIPTION MEDICINES INCLUDING SOME THAT MAKE THEM DIZZY OR DROWSY AA GROUP THEY WILL DRIVE AN ESTIMATED 84 BILLION MILES A YEAR THE POTENTIAL FOR DISASTER IS ALREADY EVIDENT WHILE OLDER DRIVERS AS A GROUP AREN'T NEARLY AS DANGEROUS AS TEENAGERS THEIR ACCIDENT RATES SLOWLY BEGIN RISING AT AGE 60 AND START ROCKETING AFTER AGE 75 AFTER AGE 85 THEY ARE INVOLVED IN ACCIDENTS MORE THAN FOUR TIMES AS OFTEN AS THE SAFEST DRIVERS THOSE AGE 50 TO 59 ON A MILEFORMILE BASIS AND WHEN THEY ARE IN ACCIDENTS DRIVERS OVER AGE 85 ARE 15 TIMES AS LIKELY TO DIE AS DRIVERS IN THEIR 40S ACCORDING TO A WALL STREET JOURNAL COMPUTER ANALYSIS OF THE DEPARTMENT OF TRANSPORTATION'S FATALACCIDENT DATA FOR 1990 SEE ACCOMPANYING ILLUSTRATION WSJ OCT 29 1993 ELDERLY DRIVERS HAVE PLAYED A ROLE IN SOME HORRIFIC RECENT ACCIDENTS LAST YEAR 75YEAROLD STELLA MAYCHICK MOWED DOWN AN AFTERNOON CROWD IN NEW YORK CITY'S WASHINGTON SQUARE PARK KILLING FOUR PEOPLE AND INJURING 27 OTHERS HER LAWYER SAYS HER CAR RACED OUT OF CONTROL AND THAT HER AGE WASN'T A FACTOR IN JULY 83YEAROLD MEYER HOLTZIN LOST CONTROL OF HIS CAR IN A SUPERMARKET PARKING LOT IN PHILADELPHIA ACCORDING TO WITNESSES AND A POLICE DIAGRAM HE HIT A TREE CAREENED THROUGH THE AIR AND LANDED AT A BUS STOP STRIKING THREE CHILDREN WAITING THERE WITH THEIR FATHER AND KILLING ONE OF THEM SIXYEAROLD BRUCE FERGUSON JR MR HOLTZIN COULDN'T BE REACHED AND HIS LAWYER DECLINED COMMENT WE NEED SOME TYPE OF MANDATORY TESTING EVERY FIVE OR SIX YEARS SAYS THE SENIOR BRUCE FERGUSON WHO WATCHED AS THE CAR SLAMMED INTO HIS THREE YOUNG CHILDREN WITH SUCH FORCE THAT THEY WERE FLUNG ACROSS A STREET HIS DAUGHTERS AGES FOUR AND EIGHT WERE INJURED BUT SURVIVED WITHOUT WIDESPREAD RETESTING FOR SENIORS WE'RE JUST GOING TO SLAUGHTER MORE PEOPLE ON THE HIGHWAYS ADDS MARIAN LEWIS A FORMER STATE REPRESENTATIVE IN FLORIDA WHERE ABOUT 18 OF THE POPULATION IS OVER 65 YET LAWMAKERS AND TRANSPORTATION OFFICIALS HAVE DONE LITTLE TO PUT THE BRAKES ON THIS DEADLY TREND MANY STATES ALLOW EVEN THEIR OLDEST DRIVERS TO SIMPLY RENEW BY MAIL REQUIRING ELDERLY DRIVERS TO BE RETESTED COULD RUN AFOUL OF FEDERAL ANTIDISCRIMINATION LAWS SAYS THE POWERFUL SENIORS LOBBY THE AMERICAN ASSOCIATION OF RETIRED PERSONS AND ANY RESTRICTIONS SMACK OF CRUELTY TOWARD ELDERLY PEOPLE WHO MIGHT WITHOUT CARS BECOME SHUTINS AS EVELYN VON POHLE AN 81YEAROLD RETIRED ACCOUNTANT FROM LONGWOOD FLA SAYS I'D RATHER BE PUSHING UP DAISIES THAN LIVE WITHOUT A CAR OF COURSE NOT ALL OLDER DRIVERS ARE DANGEROUS ON AVERAGE DRIVERS OVER THE AGE OF 65 STILL ARE INVOLVED IN FEWER ACCIDENTS PER MILE THAN THOSE UNDER 30 AND SOME SENIORS RETAIN EXCELLENT DRIVING SKILLS WELL BEYOND THEIR 80S OTHERS COMPENSATE FOR FAILING HEALTH BY CHANGING THEIR DRIVING HABITS THEY QUIT DRIVING AT NIGHT ON BUSY ROADS AND DURING RUSH HOURS TROUBLE IS SENIORS CAN'T COMPENSATE FOR PROBLEMS THEY MAY NOT EVEN BE AWARE OF SUCH AS SLOWER REACTION TIMES AND SENILITY NOR CAN THEY CORRECT FOR THE SIDE EFFECTS OF MEDICATIONS SALVATORE STARVAGGI AN 88YEAROLD FORMER TRUCK DRIVER FOR ONE WAS ON NINE DIFFERENT MEDICATIONS LAST YEAR WHEN HE RAN DOWN HIS WIFE AND KILLED HER IN A WAYNE NJ SHOPPINGMALL PARKING LOT WHILE TRYING TO PICK HER UP ACCORDING TO A NATIONAL TRANSPORTATION SAFETY BOARD ACCIDENT REPORT ONE OF THE MEDICATIONS WAS FOR SENILITY TWO CAUSED DROWSINESS AND TWO SPECIFICALLY URGED CAUTION WHEN DRIVING BECAUSE THEY MAY CAUSE DIZZINESS MR STARVAGGI HAD ALSO CRASHED INTO A PARKED CAR JUST SEVEN MONTHS EARLIER YET AFTER THE ACCIDENT THAT KILLED HIS WIFE HE TOLD POLICE HE HAD NEVER HAD ANY TROUBLE DRIVING HE COULDN'T BE REACHED ACROSS TOWN AT ANOTHER MALL THAT DAY 82YEAROLD RALPH NAIMOLI PLOWED INTO THREE PEDESTRIANS IN THE PARKING LOT LANDING ALL OF THEM IN THE HOSPITAL EVEN THOUGH ONE OF THE PEDESTRIANS ENDED UP ON THE HOOD OF HIS OLDSMOBILE DELTA 88 AND EVEN THOUGH THE CAR ALSO CAREENED INTO A TREE I CONTINUE TO DRIVE MR NAIMOLI SAID LAST MONTH A PATCHWORK OF WEAK STATE LAWS MAKES IT ALMOST IMPOSSIBLE TO WEED OUT POTENTIALLY DANGEROUS DRIVERS LIKE THESE IN ADVANCE THIRTEEN STATES ALLOW DRIVERS TO RENEW THEIR LICENSES BY MAIL FOR UP TO 15 YEARS AT A TIME AND AT LEAST A DOZEN MORE HAVE LOOPHOLES ALLOWING MAIL RENEWALS INDEFINITELY JUST SEVEN STATES INCLUDING OREGON AND CALIFORNIA REQUIRE DOCTORS TO REPORT CONDITIONS THAT IMPAIR A PERSON'S ABILITY TO DRIVE AND ONLY THREE STATES REQUIRE ROAD TESTS BEYOND THE INITIAL ONE TO GET A LICENSE THE STATES WITH THE LARGEST ELDERLY POPULATIONS ARE AMONG THE MOST LAX FLORIDA WITH THE NATION'S LARGEST PROPORTION OF SENIORS ALLOWS DRIVERS TO RENEW BY MAIL FOR UP TO SIX YEARS AT A TIME PENNSYLVANIA WITH THE THIRDHIGHEST PERCENTAGE OF SENIORS ALLOWS MOST DRIVERS TO RENEW BY MAIL UNTIL THEY DIE UNLESS THEY ARE CHOSEN IN A LOTTERY FOR RETESTING OR THEIR DOCTOR REPORTS THEM TO STATE OFFICIALS FOR CONDITIONS THAT MAY IMPAIR DRIVING ABILITY WHAT'S MORE NO STATE REVOKES A DRIVER'S LICENSE ON THE SPOT EVEN IF THE DRIVER KILLS SOMEONE STATELAW ENFORCERS TYPICALLY MUST WAIT UNTIL THE DRIVER IS CONVICTED OF A CRIME SUCH AS CRIMINALLY NEGLIGENT HOMICIDE WHICH USUALLY ONLY HAPPENS IN CASES INVOLVING DRUNK DRIVERS OR DRIVERS WHO LEAVE AN ACCIDENT SCENE REVOKING AN ELDERLY PERSON'S LICENSE THOUGH ISN'T ALWAYS THE ANSWER FOR SOME SENIORS A LICENSE ISN'T JUST A MEANS TO MOBILITY BUT A PASSPORT TO INDEPENDENCE THE LAST STOP BEFORE A NURSING HOME I'M SO DEPRESSED RIGHT NOW IT'S PATHETIC SAYS CHARLES MARSH A 68YEAROLD RETIRED ARMY MAJOR FROM GARDEN GROVE CALIF I CAN'T GO ANY PLACE I CAN'T SEE ANYTHING OR DO ANYTHING UNTIL A FEW MONTHS AGO MR MARSH'S PRIDE AND JOY WAS HIS BLACK 1983 CADILLAC WHICH HE WASHED WEEKLY AND DROVE EVERY DAY THERE WERE BINGO GAMES AND COOKOUTS WITH HIS ELK'S LODGE MEETINGS OF THE LOCAL CHAMBER OF COMMERCE AND WEEKLY JAUNTS TO THE MOVIES TO SEE ACTION FLICKS BUT SIX MONTHS AGO MR MARSH HAD TO GIVE UP DRIVING WHEN HE LOST FEELING IN HIS FEET BECAUSE OF DIABETES NOW HE IS A VIRTUAL SHUTIN REDUCED TO WATCHING STAR TREK THE NEXT GENERATION ON TV AND EATING WHATEVER THE MEALSONWHEELS VOLUNTEERS BRING HIM SO DESPERATE IS HE TO GET OUT THAT HE ALLOWS A FRIEND TO USE HIS BELOVED CAR ON THE CONDITION THAT THE FRIEND OCCASIONALLY TAKE HIM TOO BUT SOMETIMES THE FRIEND TAKES OFF WITH THE CAR FOR HOURS HE TAKES ADVANTAGE OF ME SAYS A FRUSTRATED MR MARSH BUT IF I SAY ANYTHING TO HIM HE'LL JUST WALK AWAY AND THAT WILL LEAVE ME WITH NOBODY AT ALL SO AWFUL IS THE PROSPECT OF LONELINESS AND ISOLATION THAT SOME SENIORS REFUSE TO QUIT DRIVING LONG AFTER THEY SHOULD ALVEN BERTELSEN 88 OF EUGENE ORE HAD HIS LICENSE SUSPENDED IN JANUARY AFTER HE SUFFERED A SLIGHT STROKE STROKE VICTIMS IN OREGON HAVE THEIR LICENSES SUSPENDED AND MUST BE RETESTED TO RENEW HIS 86YEAROLD WIFE SADIE BELIEVES HER HUSBAND WOULD BE A DANGER ON THE ROAD HE DOESN'T THINK FAST ENOUGH SHE SAYS HE HAS RUN STOP SIGNS AND DRIVEN THE WRONG WAY DOWN A ONEWAY STREET SCARING THE DAYLIGHTS OUT OF ME YET HER HUSBAND WHO HAS FALLEN INTO A DEEP DEPRESSION OVER THE LICENSE SUSPENSION HAS ALREADY TRIED THREE TIMES TO GET HIS LICENSE BACK FAILING EACH TIME THE SECOND TIME A MOTORVEHICLES EXAMINER TOLD HIM TO QUIT TELLING HIM HE MIGHT HURT SOMEONE MRS BERTELSEN SAYS HE DIDN'T LISTEN HE FINALLY GAVE UP JUST RECENTLY AFTER HE FLUNKED A THIRD TIME AND HIS EXAMINER BEGGED HIM NOT TO TRY AGAIN HE DECLINES TO COMMENT WHEN OLDER DRIVERS DO GET INTO ACCIDENTS THEY MAY FIND THAT CARS AREN'T MADE TO PROTECT THEM FEDERAL CARSAFETY REGULATIONS ARE GEARED TO PROTECT 5FOOT10INCH 170POUND MEN INVOLVED IN 30 MILESANHOUR HEADON CRASHES BUT THE ELDERLY TYPICALLY AREN'T THAT BIG AND THEY OFTEN GET HIT ON THE SIDE NEW SIDEIMPACT STANDARDS WHICH ALL NEW CARS MUST MEET BY 1997 ARE DESIGNED TO REDUCE SIDEIMPACT INJURIES YET THE STIFF PADDING NEEDED TO MEET THE NEW STANDARDS CAN IN SOME CASES HURT SENIORS BREAKING BRITTLE BONES BECAUSE THE VERY OLD ARE ALSO MORE PRONE TO AILMENTS SUCH AS PNEUMONIA BROUGHT ON BY BED REST THEY SOMETIMES DIE AS A RESULT OF CRASHES THAT ARE BARELY MORE THAN FENDER BENDERS WHILE TEENS INVOLVED IN FATAL ACCIDENTS ARE FOUR TIMES AS LIKELY TO SURVIVE IF THEY WEAR SEAT BELTS PEOPLE OVER AGE 65 WHO BELT UP ARE ONLY 15 TIMES AS LIKELY TO SURVIVE THE JOURNAL'S ANALYSIS FOUND TEENAGERS TEND TO GET INTO ACCIDENTS BECAUSE OF DRUNK DRIVING AND SPEEDING BUT FOR THE ELDERLY FAILURE TO YIELD TO ONCOMING TRAFFIC TOPS THE LIST FAILURE TO YIELD WAS A FACTOR IN 44 OF ALL FATAL ACCIDENTS INVOLVING DRIVERS OVER AGE 85 THE JOURNAL'S ANALYSIS FOUND COMPARED WITH LESS THAN 7 FOR DRIVERS UNDER AGE 55 SENIORS DART INTO TRAFFIC AT INTERSECTIONS OR TURN IN FRONT OF ONCOMING TRAFFIC OFTEN BECAUSE OF DETERIORATING DEPTH PERCEPTION OR PERIPHERAL VISION SAY STATE LICENSING OFFICIALS THEIR FREQUENT FAILURE TO YIELD HELPS EXPLAIN WHY SENIORS OFTEN GET HIT IN THE SIDE INDEED MORE THAN 40 OF FATAL CRASHES INVOLVING DRIVERS OVER THE AGE OF 80 ARE SIDEIMPACT CRASHES MORE THAN DOUBLE THE PERCENTAGE FOR DRIVERS BETWEEN THE AGES OF 25 AND 50 AND SENIORS DIE EVEN AS A RESULT OF LOWSPEED SIDE CRASHES AT RELATIVE SPEEDS UNDER 33 MILES AN HOUR 86 OF THOSE OVER AGE 60 DIED COMPARED WITH NO ONE UNDER AGE 40 A 1983 STUDY BY THE SOCIETY FOR AUTOMOTIVE ENGINEERS FOUND ONE SUCH ACCIDENT KILLED WILFRED ROBICHARD AN 83YEAROLD FROM SOUND BEACH NY MR ROBICHARD WAS MAKING A LEFT TURN ON A PORT JEFFERSON STATION NY HIGHWAY IN MARCH WHEN TO AVOID ANOTHER CAR HE SUDDENLY STOPPED DEAD IN THE MIDDLE OF THE INTERSECTION EVEN THOUGH A CHEVY LUMINA WAS APPROACHING TO HIS RIGHT THE DRIVER OF THAT CAR BUS DRIVER ANTHONY CUIFFO WILL NEVER FORGET WHAT HAPPENED NEXT I HIT THE BRAKES BUT I COULDN'T MOVE AROUND TO AVOID AN ACCIDENT IN THE CRASH THAT FOLLOWED BOTH MR ROBICHARD AND ONE OF HIS TWO PASSENGERS A 78YEAROLD WOMAN WERE KILLED NO CHARGES WERE FILED AGAINST MR CUIFFO INATTENTIVENESS SUCH AS TALKING OR EATING WAS A FACTOR IN MORE THAN 13 OF ALL FATAL ACCIDENTS INVOLVING DRIVERS OVER AGE 85 MORE THAN DOUBLE THE RATE OF THE SAFEST DRIVERS THOSE AGE 50 TO 59 THE JOURNAL FOUND AND DISOBEYING SIGNS WAS A FACTOR IN ABOUT 14 OF FATAL ACCIDENTS INVOLVING DRIVERS OVER AGE 80 ALMOST THREE TIMES THE RATE OF DRIVERS UNDER AGE 65 IN JULY FOR EXAMPLE TEXAS POLICE SAY 92YEAROLD VIOLA NELSON RIZZO TOOK A WRONG TURN ON HER WAY TO EXCHANGE A PAIR OF SHOES AND ENDED UP ON THE TARMAC OF HOUSTON GULF AIRPORT WHERE SHE CRASHED INTO A PIPER PLANE TAXIING TOWARD THE RUNWAY NO ONE WAS SERIOUSLY HURT TO WEED OUT THE MOST DANGEROUS DRIVERS MS LEWIS THE FORMER FLORIDA STATE REPRESENTATIVE TRIED TWICE TO INTRODUCE A BILL REQUIRING REGULAR ROAD TESTS FOR DRIVERS OVER AGE 80 THE THREE STATES THAT DO HAVE SUCH ROAD TESTS ILLINOIS INDIANA AND NEW HAMPSHIRE SAY THEY BELIEVE THE MEASURE HAS PREVENTED ACCIDENTS IN ILLINOIS FOR EXAMPLE 17 OF 81 TO 86YEAROLDS AND 23 OF THOSE OVER 87 HAVE FAILED REQUIRED VISION AND DRIVING TESTS THIS YEAR THROUGH JULY IN FLORIDA THOUGH MS LEWIS'S PROPOSED BILL DIED BOTH TIMES IN 1989 AND 1990 AMID A BARRAGE OF HATE MAIL FROM SENIOR CITIZENS THEY SAID IT WAS DISCRIMINATORY AND THAT I WAS PICKING ON THEM SAYS MS LEWIS WHO HAS SINCE RETIRED FROM OFFICE THERE WERE VERY DEROGATORY REMARKS THAT I MUST HAVE SOMETHING WRONG WITH MY BRAIN WE WANT THE ROADS SAFE WE JUST DON'T WANT OLDER PEOPLE PAYING A HIGHER PRICE THAN IS PAID BY ANY OTHER DRIVER RETORTS MICHAEL SEATON AN EXECUTIVE WITH THE AMERICAN ASSOCIATION OF RETIRED PERSONS WHICH LOBBIED AGAINST MS LEWIS'S PROPOSAL AARP ADVOCATES MANDATORY RENEWAL TESTS FOR ALL DRIVERS NOT JUST THE ELDERLY ALTHOUGH IT HASN'T CHALLENGED EXISTING STATE RESTRICTIONS ON ELDERLY DRIVERS CONGRESS IS NOW MULLING A BILL THAT WOULD FUND RESEARCH ON WEEDING OUT HIGHRISK DRIVERS WITHOUT TARGETING THE ELDERLY CALLED THE HIGH RISK DRIVER'S ACT IT FOCUSES LARGELY ON PREVENTING TEENS FROM DRIVING DRUNK AARP SUPPORTS THE BILL BECAUSE IT PROMOTES RESTRICTING LICENSES ALLOWING DAYTIME DRIVING ONLY FOR INSTANCE INSTEAD OF REVOKING THEM MOST STATES ALREADY ISSUE DAYLIGHTDRIVING LICENSES TO SOME DRIVERS SUCH AS THOSE WITH POOR VISION AND A HANDFUL INCLUDING OREGON WASHINGTON IOWA AND MOST RECENTLY CALIFORNIA OFFER FURTHER RESTRICTIONS SUCH AS BARRING DRIVING DURING RUSH HOURS BUT THE RESTRICTEDLICENSE PROGRAMS HAVE HAD MIXED RESULTS SO FAR ARIZONA'S SUN CITY THE BIG RETIREMENT COMMUNITY FOR EXAMPLE ABRUPTLY ABANDONED ITS PROGRAM IN 1985 AFTER AN ELDERLY WOMAN WITH A RESTRICTED LICENSE RAN DOWN AND KILLED A PEDESTRIAN IN A PARKING LOT AND TONY DELORENZO A LICENSING OFFICIAL AT OREGON'S MOTOR VEHICLE DIVISION SAYS THE STATE EARLY ON GAVE A RESTRICTED LICENSE TO AN OLDER MAN EVEN THOUGH HE HAD FAILED HIS TEST SEVERAL TIMES FIGURING HE NEEDED TO BE ABLE TO RUN ERRANDS THE MAN LATER STRUCK AND CRIPPLED A CHILD THE VARIOUS STATES INVOLVED SAY THEY HAVEN'T KEPT TRACK OF THE RESTRICTEDLICENSE PROGRAMS' RESULTS BUT THE JOURNAL'S ANALYSIS FOUND THAT FATALACCIDENT RATES FOR THE ELDERLY AREN'T SIGNIFICANTLY DIFFERENT IN STATES THAT HAVE THE PROGRAMS RESTRICTING SENIORS TO DAYLIGHT HOURS MAY NOT HELP MUCH SIMPLY BECAUSE MANY ELDERLY DRIVERS DON'T DRIVE AT NIGHT ANYWAY ACCORDING TO THE JOURNAL'S ANALYSIS SOME 79 OF FATAL ACCIDENTS INVOLVING PEOPLE AGE 65 AND OLDER OCCUR IN THE DAYTIME COMPARED WITH 43 OF FATAL ACCIDENTS INVOLVING PEOPLE BETWEEN THE AGES OF 15 AND 29 WITH NO STANDARD METHOD TO PINPOINT DANGEROUS ELDERLY DRIVERS AND GET THEM OFF THE ROADS PERHAPS THE BEST THAT MANY STATES CAN DO IS TO SIMPLY ENCOURAGE PEOPLE TO ANONYMOUSLY REPORT BAD DRIVERS YET MANY PEOPLE ARE LOATHE TO DO SO MAUREEN ABER OF VERONA PA SAYS SHE STILL FEELS GUILTY ABOUT A WOMAN SHE TURNED IN A FEW YEARS AGO THE WOMAN WHO WAS IN HER EARLY 80S DROVE POORLY AND OFTEN LEFT HER CAR PARKED HALFWAY IN THE STREET MS ABER POINTED OUT THE PROBLEM BUT THE WOMAN ALWAYS SAID SHE WAS TOO TIRED TO PARK AGAIN WORRIED THAT THE WOMAN MIGHT KILL SOMEONE MS ABER CALLED THE POLICE SOON AFTER STATE OFFICIALS RETESTED THE WOMAN AND REVOKED HER LICENSE WITHOUT HER WHEELS THE WOMAN WAS FORCED TO MOVE INTO A NURSING HOME WHERE SHE SUBSEQUENTLY DIED SHE WAS CRUSHED OVER LOSING HER LICENSE MS ABER RECALLS I DID FEEL RESPONSIBLE PATRICIA G DAVIS CONTRIBUTED TO THIS ARTICLE 9310290097 931029 TECHNOLOGY BRIEF ABBOTT LABORATORIES BABY FORMULA MAKER AGREES NOT TO RESTRICT ADVERTISING ABBOTT LABORATORIES AGREED NOT TO RESTRICT ADVERTISING OF BABY FORMULA IN A SETTLEMENT OF FEDERAL TRADE COMMISSION CHARGES THAT THE COMPANY HAD COLLUDED WITH OTHER FORMULA MANUFACTURERS ABBOTT AND THE FTC IN MAKING THE SETTLEMENT FINAL SAID THE COMPANY AGREED NOT TO TRY TO PERSUADE COMPETITORS TO ADOPT OR ADHERE TO LIMITS ON ADVERTISING ABBOTT AND OTHER FORMULA MAKERS HAD PARTICIPATED IN FORMING AN INDUSTRY CODE TO PROHIBIT CONSUMER ADVERTISING ACCORDING TO EVIDENCE PRODUCED IN ANTITRUST LITIGATION THAT ABBOTT SETTLED EARLIER THIS YEAR ONE EFFECT OF THE RESTRICTIONS WAS TO MAKE IT MORE DIFFICULT FOR NEW CONSUMERORIENTED COMPANIES SUCH AS NESTLE SA TO ENTER THE US MARKET ABBOTT DIDN'T ADMIT VIOLATIONS OF THE LAW IN SETTLING THE CONSPIRACY CHARGES BROUGHT BY THE FTC THE NORTH CHICAGO ILL MANUFACTURER ALSO FACES A SEPARATE FTC COMPLAINT THAT ALLEGES IT RIGGED BIDS FOR PROVIDING BABY FORMULA THROUGH A FEDERAL NUTRITION PROGRAM TO MORE THAN 40000 INFANTS IN PUERTO RICO A TRIAL ON THOSE CHARGES IS SET FOR FEBRUARY 9310290096 931029 INTERNATIONAL VW SAYS IT HAS 30000 WORKERS IT DOESN'T NEED CAR MAKER'S UNION IS FACED WITH CHOICE OF LAYOFFS OR 4DAY WORKWEEK BY ALEX KETO SPECIAL TO THE WALL STREET JOURNAL WOLFSBURG GERMANY CITING A DEPRESSED AUTO MARKET AND IMPROVEMENTS IN PRODUCTIVITY VOLKSWAGEN AG SAID IT WILL HAVE JOBS FOR ONLY TWOTHIRDS OF ITS WORK FORCE IN 1994 AND 1995 THAT'S A STAGGERING SURPLUS OF ABOUT 30000 PEOPLE AS A RESULT VW'S UNIONS WILL HAVE TO CHOOSE BETWEEN TWO UNPLEASANT OPTIONS EITHER HUGE LAYOFFS THAT WILL FALL LARGELY ON GERMAN EMPLOYEES OR A FOURDAY WORKWEEK TO SPREAD A DIMINISHING POOL OF JOBS THROUGHOUT ITS WORK FORCE IF VW DOESN'T ACT TO SPREAD JOBS AMONG ITS EXISTING WORK FORCE IT WILL BE FORCED TO SLASH 18000 WORKERS FROM THE PAYROLL IN 1994 AND THEN AN ADDITIONAL 12000 IN 1995 SAID PETER HARTZ A MEMBER OF THE VW BOARD AND DIRECTOR OF PERSONNEL WHO LAID OUT THE CHOICES AT A NEWS CONFERENCE VW EMPLOYS ABOUT 107000 WORKERS AND WANTS TO REDUCE THAT NUMBER TO 100000 BEFORE THE START OF 1994 THE COMPANY'S FINAL GOAL IS TO HAVE ABOUT 71000 FULLTIME JOBS OR THEIR EQUIVALENT BY THE END OF 1995 MR HARTZ SAID VW SAID ITS PROPOSAL FOR A FOURDAY WORKWEEK INCLUDES REDUCED PAY THE COMPANY SAID IT HOPES TO SAVE A REAL 20 IN PERSONNEL COSTS THROUGH THE PROGRAM ALTHOUGH IT DIDN'T ADDRESS THE QUESTION OF THE MANY PERKS THAT ITS WORKERS GET AND WHETHER THEY TOO WOULD BE CUT A CORRESPONDING 20 THE COMPANY'S UNIONS HAVE SUPPORTED THE SHORTWEEK PROPOSAL IN GENERAL TERMS BUT HAVE SAID THE PROGRAM SHOULD BE VOLUNTARY AND THAT WORKERS WOULDN'T WELCOME A 20 CUT IN PAY EVEN IF THEIR WEEK WERE 20 SHORTER THE STRUGGLING COMPANY EUROPE'S LARGEST AUTO MAKER HASN'T DECIDED ON A PLAN OF ACTION AND WILL HAVE TO NEGOTIATE EACH STEP OF ANY PLAN WITH ITS UNIONS BY THE END OF DECEMBER THIS IS A MOMENT WITH RISKS BUT ALSO AN ENORMOUS CHANCE SAID KLAUS VOLKERT CHAIRMAN OF THE COMBINED WORKERS COUNCIL THAT REPRESENTS THE UNIONS ALTHOUGH VW HASN'T ANNOUNCED SIMILAR PLANS FOR OTHER AREAS OF THE COMPANY SUCH AS AUDI AG VW'S LUXURY CAR DIVISION AN OFFICIAL SAID SUCH MOVES WERE LIKELY EARLIER IN THE YEAR AUDI SAID IT WAS FACING LOSSES OF AS MUCH AS 300 MILLION MARKS 1786 MILLION IN 1993 ALONE OTHER STEPS THAT VW MAY TAKE INCLUDE LIMITING THE NUMBER OF MONTHS PER YEAR THAT SINGLE WORKERS AND WORKERS UNDER 30 CAN WORK THESE WORKERS MAY BE LIMITED TO WORKING ONLY EIGHT OR NINE MONTHS A YEAR MR HARTZ SAID ALTHOUGH NO DEFINITE DECISION HAS BEEN REACHED ON THE SUBJECT THESE WORKERS MAY ALSO BE SHUNTED INTO RETRAINING PROGRAMS TO IMPROVE THEIR SKILLS IN ADDITION VW PUT THE UNIONS ON NOTICE THAT IT WANTS SUBSTANTIAL CONCESSIONS FROM THEM REGARDING TECHNICAL RULES GOVERNING WHICH JOBS WORKERS MAY DO AND WHAT WILL BE EXPECTED OF THEM TO EMPHASIZE THE FACT THAT VW IS IN A CRISIS COMPANY SPOKESMEN SAID THE AUTO MAKER IS NO LONGER MAKING ANY FORECASTS FOR THE PERFORMANCE OF EITHER THE PARENT COMPANY OR THE CONSOLIDATED GROUP FOR 1994 INSTEAD A VW SPOKESMAN SAID THE COMPANY IS ONLY WILLING TO REPEAT THE MOST RECENT FORECAST OF VW CHAIRMAN FERDINAND PIECH IN WHICH HE SAID THE PARENT COMPANY ALONE WILL MAKE SLIGHTLY MORE THAN 100 MILLION MARKS IN THE THIRD QUARTER OF 1993 DURING THE SUMMER MR PIECH SAID REPEATEDLY THAT THE PARENT COMPANY WOULD BREAK EVEN IN 1993 AND POST A PROFIT IN 1994 HOWEVER THIS FORECAST CAME BEFORE VW'S SPANISH SUBSIDIARY SEAT SA DISCLOSED IT WILL LIKELY POST A LOSS OF 125 BILLION MARKS 744 MILLION IN 1993 AND AUDI CAME UP WITH ITS LOSS FORECAST MEANWHILE VW REPORTED THAT WORLDWIDE CONSOLIDATED SALES FELL 125 FOR THE FIRST NINE MONTHS OF 1993 TO 233 MILLION CARS FROM 266 MILLION IN THE YEAREARLIER PERIOD UNIT SALES OF THE VWS AUDIS SEATS AND SKODAS WERE DOWN MORE DRAMATICALLY IN GERMANY SINKING 246 TO 722600 FROM 958700 IN THE PERIOD THE COMPANY SAID 9310290095 931029 MODINE PURCHASES LANGERER RACINE WIS MODINE MANUFACTURING CO SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED PURCHASE OF LANGERER & REICH A GERMAN LIMITED PARTNERSHIP TERMS WEREN'T DISCLOSED MODINE SAID IN JULY THAT IT PLANNED TO MAKE THE ACQUISITION LANGERER IS A HEATTRANSFER COMPANY WITH 1992 SALES OF ABOUT 120 MILLION IT HAS ABOUT 1200 EMPLOYEES AT TWO SITES IN SOUTHERN GEA STARTUP OPERATION IN HUNGARY MODINE SAID 9310290094 931029 MAXIM SEES PERSHARE NET UP SUNNYVALE CALIF MAXIM INTEGRATED PRODUCTS INC SAID IT EXPECTS TO REPORT NET INCOME OF 34 CENTS A SHARE ON SALES OF SLIGHTLY MORE THAN 33 MILLION FOR ITS FISCAL FIRSTQUARTER ENDED SEPT 30 IN THE YEAREARLIER QUARTER THE CHIP SUPPLIER REPORTED NET INCOME OF 4 MILLION OR 27 CENTS A SHARE ON SALES OF 25 MILLION 9310290093 931029 NORWEGIAN JOBLESS RATE DROPS STOCKHOLM NORWEGIAN UNEMPLOYMENT DROPPED TO 49 OF THE WORK FORCE IN OCTOBER FROM 51 IN SEPTEMBER THE NORWEGIAN LABOR DIRECTORATE SAID THE AGENCY SAID THE DROP IS LARGELY ATTRIBUTABLE TO THE INCREASED NUMBER OF PEOPLE ENROLLED IN GOVERNMENT JOBTRAINING AND OTHER WORKSTIMULATION PROGRAMS PARTICIPANTS IN SUCH PROGRAMS AREN'T INCLUDED IN THE OFFICIAL UNEMPLOYMENT RATE 9310290092 931029 WHO'S NEWS RESCARE INC RESCARE INC LOUISVILLE KY RONALD G GEARY PRESIDENT AND DIRECTOR WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER MR GEARY 46 YEARS OLD SUCCEEDS JAMES R FORNEAR 63 WHO REMAINS CHAIRMAN RESCARE PROVIDES RESIDENTIAL TRAINING AND SUPPORT SERVICES FOR PEOPLE WITH MENTAL RETARDATION AND OTHER DEVELOPMENT DISABILITIES 9310290091 931029 WHO'S NEWS GLEASON CORP GLEASON CORP ROCHESTER NY J DAVID CARTWRIGHT 54 YEARS OLD PRESIDENT OF COOPER INDUSTRIES INC'S CHAMPION SPARK PLUG CO UNIT WAS NAMED A DIRECTOR OF THE MAKER OF GEARPRODUCTION EQUIPMENT HE SUCCEEDS PAUL W MACAVOY CURRENTLY DEAN OF THE YALE SCHOOL OF ORGANIZATION AND MANAGEMENT WHO RESIGNED FROM THE BOARD GLEASON'S BOARD SIZE REMAINS AT SIX MEMBERS 9310290090 931029 GOBLINS GHOSTS AND BROKERS SHRIEK AS A HALLOWEEN TRADITION IS AXED BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO TOM REID'S STOCK PICKS CAME BACK TO HAUNT HIM SINCE THE CRASH OF 1987 MR REID HAS BEEN FAMOUS HEREABOUTS FOR HANDING OUT SHARES IN CANADIAN COMPANIES TO THE FIRST 100 KIDS TO COME TRICKORTREATING AT HIS HOME IN THE TORONTO SUBURB OF OAKVILLE BUT NO MORE THIS YEAR GHOSTS AND GOBLINS SOME OF WHOM USED TO TRAVEL UP TO 200 MILES TO ADD TO THEIR PORTFOLIOS WILL HAVE TO MAKE DO WITH MORE PROSAIC CHOCOLATE BARS AND MOVIETHEATER PASSES THE REASON IN AN EERIE COINCIDENCE FIVE OF THE SIX STOCKS MR REID SELECTED NOW TRADE BELOW THE PRICE THEY FETCHED WHEN THEY WERE HANDED OUT WHILE THE MARKET ITSELF HAS SET NEW HIGHS OVER THE PAST 12 MONTHS BUT IT IS ONE NOTABLE MARKET DISASTER MR REID SAYS THAT MAKES IT PARTICULARLY HARD FOR HIM TO SLEEP AT NIGHT THE SKELETAL REMAINS OF ROYAL TRUSTCO LTD VALUED AT C9 A SHARE AT HALLOWEEN 1991 RENAMED GENTRA INC NOW TRADE AT ONLY 42 CENTS A SHARE A LOT OF MY FRIENDS WERE HURT BY THE COLLAPSE OF ROYAL TRUSTCO MR REID EXPLAINS I FELT BADLY ON A PERSONAL LEVEL AND IT MADE ME QUESTION THE VALUES I HAD AND PROMOTED WHO NEEDS TWO PORSCHES WHILE HE STILL WANTS KIDS TO BELIEVE IN THE FREE MARKET HE WORRIES ABOUT SOME OF THE EVENMOREEAGER PARENTS WHO WOULD LINE UP ON HIS DOORSTEP WITH THEIR OFFSPRING EVERY YEAR A LOT OF THEM COULDN'T AFFORD TO BE IN THE MARKET BUT THEY FIGURED IN A FEW YEARS THE MARKET WOULD GO UP AND THEY COULD PAY FOR THE KIDS' EDUCATION HE SAYS THEY DIDN'T SEEM TO REALIZE MARKETS CAN ALSO GO DOWN MR REID SAYS NO ONE HAS EVER COMPLAINED THAT THE HALLOWEEN STOCKS HAVE LOST VALUE HE ADDS HOWEVER THAT MY FRIENDS IN THE STOCKMARKET BUSINESS TEASE ME A LOT BUT IN MR REID'S WORLD HALLOWEEN THEATER PASSES ALSO MIGHT CARRY SOME FINANCIAL REWARDS FOR THE RECIPIENTS DOWN THE LINE THE SON OF A HAMILTON ONTARIO MOVIETHEATER MANAGER AND HIMSELF AN AVID FILM BUFF MR REID INCLUDES IN HIS PUBLICRELATIONS FIRM'S NEWSLETTER A MOVIETRIVIA QUESTION AND OFFERS A C50 CASH PRIZE FOR THE FIRST CORRECT ANSWER WHO KNOWS MAYBE SOME OF THE KIDS WILL GO ON TO WIN THAT SAYS MR REID REFLECTIVELY 9310290089 931029 WHO'S NEWS HF AHMANSON & CO HF AHMANSON & CO IRWINDALE CALIF FREDRIC J FORSTER 48 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER OF THIS BANKING CONCERN AND OF ITS MAIN UNIT HOME SAVINGS OF AMERICA MR FORSTER WILL REMAIN PRESIDENT OF HOME SAVINGS A POST HE TOOK WHEN JOINING THE COMPANY IN FEBRUARY HE SUCCEEDS CHARLES R RINEHART 46 WHO WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AHMANSON ON NOV 1 AS PREVIOUSLY REPORTED 9310290088 931029 MOORCO BUYS VALVE MAKER HOUSTON MOORCO INTERNATIONAL INC ACQUIRED THE ASSETS OF THE INVALCO DIVISION OF CLOSELY HELD NATIONAL TANK CO VALUE OF THE TRANSACTION WAS NOT DISCLOSED MOORCO SAID INVALCO BASED IN HUTCHINSON KAN MAKES VALVES FLOW METERS LEVEL CONTROL DEVICES ANALYZERS AND CONTROLS FOR THE PETROLEUM AND INDUSTRIAL PROCESS MARKETS INVALCO'S SALES FOR ITS MOST RECENT FISCAL YEAR WERE ABOUT 75 MILLION MOORCO SAID INVALCO WILL OPERATE AS A UNIT OF ITS SMITH METER SUBSIDIARY A SUPPLIER OF FLUID MEASUREMENT PRODUCTS 9310290087 931029 CABLEVISION PLANS TO BUY THREE CABLETV SYSTEMS WOODBURY NY CABLEVISION SYSTEMS CORP SAID IT WILL BUY THREE CABLETV SYSTEMS IN NEW JERSEY AND MASSACHUSETTS FROM SUTTON CAPITAL ASSOCIATES INC FOR 463 MILLION CABLEVISION THE FIFTH LARGEST CABLE OPERATOR IN THE COUNTRY WITH 21 MILLION SUBSCRIBERS HAS BEEN AGGRESSIVELY PURSUED ITSELF IN RECENT MONTHS BY TELEPHONE COMPANIES AS MERGERS AND PARTNERSHIPS BETWEEN THE CABLE AND PHONE INDUSTRIES INTENSIFY THE SUTTON DEAL WOULD ENHANCE CABLEVISION'S STRATEGY OF CLUSTERING GROUPS OF CABLE SYSTEMS IN THE SAME REGION CABLEVISION ALREADY OWNS CABLE SYSTEMS IN NEW JERSEY AND MASSACHUSETTS AN ATTRACTIVE PROSPECT FOR ANY TELEPHONE COMPANY LOOKING TO BUY LARGE CONTIGUOUS CABLE PROPERTIES CABLEVISION PAID ABOUT 11 TIMES CASH FLOW FOR THE SUTTON SYSTEMS WHICH HAVE BEEN FOR SALE FOR MORE THAN A YEAR THE LARGEST SYSTEM IN THE DEAL MONMOUTH CABLEVISION SERVES 115000 CABLE HOMES IN MONMOUTH AND OCEAN COUNTIES IN NEW JERSEY WHILE RIVERVIEW CABLEVISION SERVES ABOUT 45000 CABLE HOMES IN HUDSON COUNTY NJ BOTH SYSTEMS ARE NEAR CABLEVISION'S NEWARK BAYONNE AND BERGEN COUNTY SYSTEMS FRAMINGHAM CABLEVISION SERVES ABOUT 16300 SUBSCRIBERS IN FRAMINGHAM MASS 9310290086 931029 CALIFORNIA MICROWAVE PURCHASE SUNNYVALE CALIF CALIFORNIA MICROWAVE INC COMPLETED ITS ACQUISITION OF CLOSELY HELD TELESCIENCES INC'S TELESCIENCES TRANSMISSION SYSTEMS UNIT FOR 287 MILLION AS PART OF THE TRANSACTION MOTOROLA INC A TELESCIENCES TRANSMISSION CUSTOMER WILL BUY A 57 MILLION CONVERTIBLE SUBORDINATED NOTE FROM CALIFORNIA MICROWAVE THE NOTE IS CONVERTIBLE AT 2850 A SHARE MOTOROLA ALSO EXTENDED ITS SUPPLY AGREEMENT WITH TELESCIENCES TRANSMISSION THROUGH OCTOBER 1998 9310290085 931029 COMMODITIES COFFEE FUTURES CONTINUE TO SURGE AMID SIGNS OF TIGHT SUPPLIES BRAZIL TO HONOR EXPORT RULES BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COFFEE FUTURES PRICES CONTINUED TO SURGE AMID INDICATIONS OF INCREASINGLY TIGHT COFFEE SUPPLIES AS BRAZIL SET A DATE FOR HONORING ITS OBLIGATIONS UNDER EXPORTLIMITING AGREEMENTS AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE THE PRICE OF THE DECEMBER COFFEE FUTURES CONTRACTS ROSE 165 CENTS TO SETTLE AT 7800 CENTS A POUND YESTERDAY BRAZIL SET WEDNESDAY AS THE DAY FOR ITS FIRST AUCTION OF COFFEE UNDER A PLAN AMONG LATIN AMERICAN AND AFRICAN COFFEE PRODUCERS TO WITHHOLD 20 OF THEIR COFFEE EXPORTS AT TIMES WHEN A MOVING AVERAGE OF COFFEE PRICES IS BELOW 80 CENTS A POUND ON WEDNESDAY THE BRAZILIAN GOVERNMENT IS EXPECTED TO PURCHASE 150000 BAGS OF COFFEE OR 20 OF THE COUNTRY'S TOTAL EXPORTS DURING THE MONTH OF OCTOBER WITH THE INTENT OF WITHHOLDING IT FROM THE WORLD MARKET WHAT BRAZIL DOES IS IMPORTANT BECAUSE IT IS THE WORLD'S BIGGEST COFFEE PRODUCER THE MARKET IS REALIZING DESPITE SKEPTICISM THAT IT REALLY DOES APPEAR THE RETENTION PLAN IS GOING TO BE IMPLEMENTED IN BRAZIL AS IT HAS BEEN IN OTHER GROWING NATIONS SAID SAUNDRA KAUL COFFEE ANALYST FOR SMITH BARNEY SHEARSON THESE EFFORTS TO LIMIT SUPPLY AS WE MOVE INTO THE PEAK DEMAND PERIOD ARE PROMOTING A SENSE THAT PRICES ARE GOING TO HAVE TO MOVE HIGHER IN COMING MONTHS EVEN ASIDE FROM THE EXPORTLIMITING AGREEMENT AMONG COFFEE PRODUCERS THE FACTORS AFFECTING THE SUPPLY OF AND DEMAND FOR COFFEE ARE POINTING TOWARD HIGHER PRICES ANALYSTS SAID THE FUNDAMENTALS SAID JUDITH GANES COFFEE ANALYST FOR MERRILL LYNCH WERE BEGINNING TO SHAPE UP ANYWAYPRODUCTION DIFFICULTIES LOW PRICES HAVING A NEGATIVE IMPACT ON WORLD PRODUCTION WE WERE BEGINNING TO SEE SOME TIGHTNESS IN CERTAIN QUALITY COFFEES THE EFFECT ON FUTURES PRICES OF THESE POTENTIAL SUPPLY CONTRAINTS ON COFFEE IS MAGNIFIED BY THE FACT THAT FALL MARKS THE BEGINNING OF THE PEAK SEASON FOR COFFEE CONSUMPTION AT A COFFEE TRADE SHOW IN NEW ORLEANS A REPRESENTATIVE OF BRAZIL STATED HIS COUNTRY'S INTENTION TO ABIDE BY THE EXPORTLIMITING AGREEMENT DESPITE WIDESPREAD SKEPTICISM AMONG COFFEE TRADERS THAT IT WILL DO SO THE REASONS FOR THE SKEPTICISM MS GANES SAID INCLUDE PAST INABILITY TO ADHERE TO STATED OBJECTIVES CHEATING ON INTERNATIONAL COFFEE AGREEMENT QUOTAS AND SETTING UP BLACK MARKETS AND TWOTIERED MARKETS MS GAINS ADDED THAT SHE REMAINS SKEPTICAL ABOUT THE LONGTERM PROSPECTS OF THE EXPORTLIMITING SCHEME SUPPLIES ARE BEING WITHHELD WHILE PRICES ARE GOING UP BUT HOW LONG WILL THEY DO IT WHEN PRICES MOVE AGAINST THEM SHE SAID FOR THE MOMENT AT LEAST FUTURES PRICES ARE LIKELY TO CONTINUE TO CLIMB POSSIBLY SHARPLY MOST ANALYSTS THINK I THINK YOU'LL HEAD UP TO 90 CENTS OR BETTER THIS OCTOBERNOVEMBER QUARTER SAID MS KAUL THE SMITH BARNEY SHEARSON ANALYST IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES PRICES FELL IN A TECHNICALLYDRIVEN MARKET CRUDE OIL FOR DECEMBER DELIVERY DROPPED 28 CENTS A BARREL TO SETTLE AT 1737 ON THE NEW YORK MERCANTILE EXCHANGE THERE WAS LITTLE NEWS TO WARRANT THE DECLINE BUT IT LED TO FURTHER SELLING IN CRUDE OIL FUTURES ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE IN A CONTINUATION OF A RECENT PATTERN FUELS FUTURES PRICES ALSO WERE DOWN IN BOTH LONDON AND NEW YORK HEATING OIL PRICES WERE LOWER DESPITE FORECASTS OF COLD WEATHER FOR THIS WEEKEND OVER MUCH OF THE US HOWEVER NATURAL GAS FUTURES PRICES WERE BOOSTED BY THE NEWS OF THE COLDER WEATHER DECEMBER GAS SETTLED 21 CENTS HIGHER AT 2385 A MILLION BRITISH THERMAL UNITS ON THE NEW YORK MERCANTILE EXCHANGE GRAINS AND SOYBEANS WHEAT FUTURES PRICES FELL DESPITE REPORTS THAT THE INTERNATIONAL WHEAT COUNCIL LOWERED ITS WORLD WHEAT PRODUCTION ESTIMATE AT THE CHICAGO BOARD OF TRADE WHEAT FOR DECEMBER DELIVERY WAS DOWN 4 1/2 CENTS TO 32625 AMID PROFITTAKING THE WHEAT COUNCIL LOWERED ITS WORLD PRODUCTION PROJECTION FOR THE YEAR TO 570 MILLION METRIC TONS FROM 575 MILLION LAST MONTH IT CITED WEAK CROPS IN THE US CANADA AND KAZAKHSTAN MOREOVER POOR HARVESTING CONDITIONS IN NORTH AMERICA EUROPE AND AUSTRALIA REDUCED THE QUALITY OF WHEAT CONSIDERABLY THE COUNCIL SAID THIS WHEAT IS TRADED AT PRICES 50 BELOW LEVELS OF THE TOPQUALITY WHEAT USED IN MAKING BREAD THE COUNCIL SAID 9310290084 931029 BNP'S SELFASSURED CHIEF LOOKS AHEAD EUROPEAN NETWORK PLANS CENTER ON DRESDNER LINK BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL PARIS FIVE MONTHS AFTER TAKING OVER AT BANQUE NATIONALE DE PARIS FRANCE'S SECONDLARGEST COMMERCIAL BANK AND ONLY A FEW WEEKS AFTER THE 28 BILLION FRANCS 476 BILLION PUBLIC OFFERING OF ITS SHARES TO INSTITUTIONAL AND PRIVATE INVESTORS MICHEL PEBEREAU IS GOING TO NEED ALL THE INSPIRATION HE CAN GET FRANCE IS IN A RECESSION AND BNP LIKE OTHER BANKS IS SEEING ITS EARNINGS SQUEEZED DESPITE PLANS FOR AN AGGRESSIVE MARKETING DRIVE BOLSTERING ITS WEAKENED PROFITS IS LIKELY TO TAKE SOME TIME HE ADMITS IN PURSUIT OF STRONGER PROFITS THE SOFTSPOKEN BNP CHAIRMAN HAS MAPPED OUT AN AMBITIOUS PROGRAM BUILDING ON BNP'S NETWORK OF 2000 BRANCHES IN FRANCE AND ITS PRESENCE IN MORE THAN 75 OTHER COUNTRIES THE PLAN'S CENTERPIECE IS A TIEUP WITH GERMANY'S DRESDNER BANK AG HE HOPES THE ASSOCIATION WILL PROVIDE THE BASIS FOR A LARGER EUROPEWIDE BANKING ALLIANCE IF HE'S RIGHT GROWING DEMAND FOR CROSSBORDER BANKING SERVICES IN EUROPE WILL PULL BANKS IN OTHER COUNTRIES INTO THE DRESDNERBNP ORBIT OF COURSE THERE ARE OBSTACLES INCLUDING THE FACT THAT MANY OBVIOUS CANDIDATES FOR PARTICIPATING IN SUCH AN ALLIANCE ALREADY HAVE LINKS WITH OTHER RIVAL BANKS BUT MR PEBEREAU A BRILLIANT INTELLECTUAL WHO ONCE WORKED AS AN ADVISER TO FRANCE'S FORMER PRESIDENT VALERY GISCARD D'ESTAING WHEN HE WAS MINISTER OF FINANCE IS UNABASHED WHEN IT COMES TO DEVELOPING A EUROPEAN MARKET HE ARGUES THE MOST IMPORTANT ELEMENT IS THE FRANCOGERMAN LINK ONCE THAT HAS BEEN FORGED HE CLAIMS THE PRESSURES FOR PARTNERS IN OTHER COUNTRIES TO JOIN ARE LIKELY TO BECOME INTENSE OTHER PEOPLE'S ENGAGEMENTS CAN BE BROKEN OFF HE SNIFFS MARRIAGES LIKE THE BNPDRESDNER TIEUP ARE MORE SOLID PUFFING ON A LATEAFTERNOON CIGAR AS HE TICKS OFF THE POINTS OF BNP'S NEW STRATEGY THE 51YEAROLD ALUMNUS OF FRANCE'S PRESTIGIOUS CIVIL SERVICE SCHOOL ECOLE NATIONALE D'ADMINISTRATION HAS EVERY REASON TO SEEM SELFASSURED HANDPICKED FOR HIS CURRENT JOB BY RENE THOMAS THE VETERAN BNP CHAIRMAN WHO RETIRED EARLIER THIS YEAR HE ARRIVED AT BNP AMID HIGH EXPECTATIONS IN THE MONTHS THAT FOLLOWED HE AND A HANDFUL OF SENIOR MANAGERS THRASHED OUT A PLAN TO WAKE UP A BANK WIDELY REGARDED AS A DOZING GIANT BY SEPTEMBER WHEN BNP WAS READY TO BE FLOATED ITS FOUNDATIONS HAD BEEN LAID AT LEAST ON PAPER EARLIER THIS YEAR MR PEBEREAU RECALLS TODAY BNP WAS A BANK THAT LACKED AN EXPLICIT STRATEGY FIVE MONTHS LATER IT NOW HAS A STRATEGY MORE PRECISE THAN NATWEST NATIONAL WESTMINSTER BANK PLC BARCLAYS AND EVEN DEUTSCHE BANK HE BOASTS IN FRANCE BNP PLANS TO CONSOLIDATE ITS POSITION AS ONE OF THE NATION'S LEADING RETAIL AND CORPORATE BANKING GROUPS FOCUSING ON FIVE MAIN DOMESTIC CLIENT GROUPS LARGE COMPANIES MEDIUMSIZE FIRMS PROFESSIONALS HIGHNET WORTH PRIVATE BANKING CLIENTS AND RETAIL CUSTOMERS IT WILL ADOPT A SEGMENTED MARKETING APPROACH FOR EACH TAKING ADVANTAGE OF A RELATIONSHIP WITH UNION DES ASSURANCE DE PARIS SA THE STATECONTROLLED INSURANCE GROUP IN WHICH IT OWNS A 20 STAKE IT WILL BROADEN THE SPREAD OF INSURANCE PRODUCTS IT SELLS IN ITS BRANCHES INCLUDING NONLIFE PRODUCTS IN RETURN UAP WHICH OWNS 15 OF BNP WILL HELP THE BANK TO BOOST ITS LENDING BUSINESS BY INTRODUCING NEW CLIENTS INTERNATIONALLY BNP'S FOUR PRIORITY CUSTOMER GROUPS WILL BE MULTINATIONAL COMPANIES MEDIUMSIZE FIRMS INVOLVED IN INTERNATIONAL TRADE FINANCIAL INSTITUTIONS AND HIGHNET WORTH INDIVIDUALS IN ADDITION TO FOUR MAIN PRODUCT AREAS WHERE BNP ALREADY HAS A STRONG POSITION INTERNATIONALLY COMMERCIAL LENDING STRUCTURED FINANCE CAPITAL MARKETS AND PRIVATE BANKING MR PEBEREAU PLANS TO DEVELOP THE BANK'S ACTIVITIES IN INTERNATIONAL TREASURY MANAGEMENT AND FUND MANAGEMENT FOR INSTITUTIONS SIMULTANEOUSLY HE IS PULLING OUT OF ACTIVITIES THAT HE REGARDS AS NONSTRATEGIC FOR THE BANK AND LIMITING THE SCOPE OF OTHERS LAST MONTH FOR EXAMPLE BNP SOLD A 47 STAKE IN KLEINWORT BENSON GROUP PLC THE UK MERCHANT BANK WHICH IT HAD PURCHASED 2 1/2 YEARS AGO IN THE US HOWEVER MR PEBEREAU SAID BNP HAS DECIDED TO KEEP ITS NORTHERN CALIFORNIA BANKING UNIT BANK OF THE WEST ON THE GROUNDS THAT THIS IS A PROFITABLE NICHE OPERATION ALTHOUGH BNP WILL PROVIDE BANK OF THE WEST WITH THE NECESSARY BACKING FOR INVESTMENTS NEEDED TO MAINTAIN ITS MARKET POSITION IT WON'T EXPAND OUTSIDE NORTHERN CALIFORNIA IN PURSUIT OF A CLEARER MORE FOCUSED WORLD ROLE FOR BNP MR PEBEREAU HAS MADE THE ALLIANCE WITH DRESDNER WHICH HE INHERITED FROM MR THOMAS A CORNERSTONE OF HIS STRATEGY THOUGH THE LINKUP IS STILL SUBJECT TO THE APPROVAL OF EUROPEAN COMMUNITY COMPETITION AUTHORITIES BOTH BANKS EXPECT IT TO BE PASSED LAST MONTH DRESDNER TOOK A 09 STAKE IN ITS FRENCH PARTNER'S STOCK MR PEBEREAU SAYS BNP PLANS SOON TO ACQUIRE A SIMILAR HOLDING IN DRESDNER FURTHER AHEAD THESE HOLDINGS MAY BE INCREASED TO 10 OF EACH OTHER'S CAPITAL MEANTIME THE BANKS ARE PLANNING JOINT INVESTMENTS IN TECHNOLOGY AND COMMUNICATIONS THAT BY MAKING THEM MORE COMPETITIVE WILL ENHANCE THEIR ATTRACTIVENESS FOR CLIENTS THE TWO PARTNERS HAVE ALREADY SET UP JOINT SUBSIDIARIES OUTSIDE THEIR HOME MARKETS IN SUCH PLACES AS SWITZERLAND HUNGARY THE CZECH REPUBLIC TURKEY AND RUSSIA CLOSER TO HOME THE TWO BANKS PLAN TO LINK COMPUTER SYSTEMS SO THAT CUSTOMERS OF ONE BANK CAN EFFECT MONEY TRANSFERS THROUGH THE BRANCHES OF THE OTHER ULTIMATELY MR PEBEREAU SAYS HE WOULD LIKE TO ENABLE CLIENTS OF BOTH BANKS TO BE ABLE TO CONDUCT A FULL RANGE OF TRANSACTIONS THROUGH EACH OTHER'S BRANCHES ONCE A UNIFIED EUROPEAN MARKET BECOMES A REALITY HE SAYS OUR CLIENTS ARE GOING TO MOVE AROUND ALL OVER THE PLACE WE HAVE TO RESPOND BY PROVIDING THE SERVICES THEY WILL REQUIRE TO FINANCE THESE PLANS HOWEVER AT THE SAME TIME AS KEEPING ITS 28 MILLION NEW SHAREHOLDERS HAPPY BNP IS GOING TO HAVE TO RAISE ITS PROFITS THAT MAY PROVE HARDER THAN SOME INVESTORS HAVE BARGAINED FOR IN AUGUST BNP REPORTED A 61 PLUNGE IN GROUP NET FOR FIRSTHALF 1993 TO 522 MILLION 882 MILLION FRENCH FRANCS FROM 133 BILLION FRANCS FOR THE WHOLE OF 1993 ANALYSTS EXPECT IT TO TURN IN NET PROFITS OF BETWEEN 900 MILLION AND 11 BILLION FRANCS DOWN FROM 22 BILLION FRANCS IN 1991 THAT WOULD GIVE A NET RETURN ON EQUITY OF AROUND 27 WELL BELOW THE 7 ACHIEVED LAST YEAR BY DEUTSCHE BANK AND DRESDNER MR PEBEREAU HIMSELF HAS SET A MEDIUMTERM PROFITABILITY TARGET BASED ON THE CURRENT EUROPEAN INTEREST RATE ENVIRONMENT OF BETWEEN 9 AND 10 RETURN ON EQUITY BUT HE HASN'T SET A DATE AND THOUGH ANALYSTS THINK IT'S ATTAINABLE IT MAY TAKE TWO OR THREE YEARS WE HAVE NO REASON TO DOUBT THAT HE IS RUTHLESSLY PROFIT ORIENTED NOTES CHRIS WILLIAMS AN ANALYST AT FOXPITT KELTON IN LONDON BUT FRENCH BANKS' PROFIT MARGINS ARE BEING SQUEEZED AS CUSTOMERS MOVE THEIR MONEY FROM INTERESTFREE CHECKING ACCOUNTS INTO INTERESTPAYING FUNDS AND BANKS LEND MORE TO LESSRISKY CUSTOMERS WHO PAY LOWER INTEREST RATES ON THEIR BORROWINGS HE POINTS OUT WHAT'S MORE FRANCE'S RECESSION IS WEIGHING ON FRENCH FIRMS' ABILITY TO PAY BACK LOANS AND TAKE OUT NEW CREDITS AND ON PRIVATE INDIVIDUALS' READINESS TO BUY EXTRA BANKING PRODUCTS AS A RESULT SAID SCOTT BUGIE A DIRECTOR OF STANDARD & POOR'S IN PARIS IT'S GOING TO BE A LONG HAUL FOR BNP TO GET THERE BNP PLANS ON TAKING ADVANTAGE OF THE EXPERIENCE GAINED IN ITS OWN PRIVATIZATION BNP AIMS TO PLAY AN ACTIVE ROLE IN THE PRIVATIZATION OF OTHER FRENCH STATEOWNED COMPANIES IT RECENTLY OBTAINED A CONTRACT JOINTLY WITH BANQUE PARIBAS TO ADVISE SOCIETE NATIONALE ELF AQUITAINE THE STATEOWNED FRENCH OIL GROUP ON ITS FORTHCOMING PRIVATIZATION AND IT PLANS TO SEEK A BIG SLICE OF SECURITIES PLACEMENT BUSINESS IT WILL ALSO CONSIDER BUYING HOLDINGS IN A NUMBER OF INDUSTRIAL COMPANIES INCLUDING PECHINEY SA AND SAINTGOBAIN SA BNP HAS LONGSTANDING BANKING LINKS WITH BOTH OF THEM AND BOTH ARE MEMBERS OF A GROUP OF 15 SOCALLED CORE SHAREHOLDERS IN ITS OWN CAPITAL 9310290082 931029 GM RECORDS SMALLER DEFICIT FOR 3RD QUARTER LOSS TOTALS 1129 MILLION '93 DOMESTIC OPERATIONS EXPECTED TO BREAK EVEN BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP SHARPLY NARROWED ITS THIRDQUARTER LOSS TO 1129 MILLION FROM 101 BILLION A YEAR EARLIER AND DECLARED THAT IT CAN ACHIEVE A QUALIFIED BREAKEVEN PERFORMANCE IN NORTH AMERICAN VEHICLE OPERATIONS FOR THE YEAR DESPITE BIG CHARGES ASSOCIATED WITH A NEW LABOR AGREEMENT GM'S THIRDQUARTER LOSS OF 49 CENTS A SHARE COMPARED WITH A LOSS OF 186 A SHARE A YEAR EARLIER INCLUDED A 589 MILLION CHARGE FOR PLANT CLOSINGS AND A 444 MILLION TAX GAIN EXCLUDING THE ONETIME ITEMS GM EARNED 176 MILLION OR 10 CENTS A COMMON SHARE AFTER PREFERREDSTOCK DIVIDEND PAYMENTS AND OTHER ADJUSTMENTS REVENUE GREW 24 TO 302 BILLION INVESTORS CHEERED THE STRONGERTHANEXPECTED IMPROVEMENT DESPITE THE CONTINUED LOSSES IN NORTH AMERICA AND EARLIER DISAPPOINTMENT WITH GM'S FAILURE TO WIN MAJOR CONCESSIONS IN A NEW THREEYEAR LABOR AGREEMENT WITH THE UNITED AUTO WORKERS UNION IN A VOTE OF CONFIDENCE IN GM PRESIDENT JOHN F SMITH JR GM SHARES ROSE 2125 TO 49 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GM'S RESULTS ALSO ENCOURAGED INVESTORS TO BID UP FORD MOTOR CO AND CHRYSLER CORP SHARES ON THE BELIEF THAT DETROIT'S RECOVERY IS REAL AND PICKING UP SPEED THE BIG THREE HAVE ENJOYED 22 STRAIGHT MONTHS OF IMPROVING SALES SAYS WERTHEIM SCHRODER ANALYST JOHN CASESA JAPANESE AUTO MAKERS ARE PARALYZED BY THE COST PENALTY OF THE STRONG YEN STUBBORN RECESSION AT HOME AND FEARS OF PROTECTIONIST RETALIATION FROM WASHINGTON HE SAYS THAT HAS PRODUCED A SITUATION WHERE ALL THREE DETROIT COMPANIES RAISED PRICES THROUGH LOWER CONSUMER INCENTIVES BOLSTERING EARNINGS MR CASESA SAID THE JAPANESE DISADVANTAGE MAY PERSIST FOR SOME TIME CHRYSLER'S SHARES FINISHED AT 57125 A SHARE UP 1875 IN BIG BOARD COMPOSITE TRADING FORD CLIMBED 250 TO 62875 BUT MR SMITH CAUTIONED IN A STATEMENT THAT GM IS ONLY HEADING IN THE DIRECTION OF RECOVERY AND HAS A LONG WAY TO GO TO REGAIN ITS FORMER FINANCIAL STRENGTH WE WON'T BE SATISFIED HE SAID UNTIL WE'VE RESTORED THE EARNINGS POWER OF OUR OPERATIONS IN THE KEY NORTH AMERICAN MARKET AS IF TO REINFORCE THE POINT GM NOTED THAT NORTH AMERICAN OPERATIONS HAD A LOSS IN A REBOUNDING ECONOMY WHILE GM EUROPE REMAINED PROFITABLE DESPITE THE WORST EUROPEAN RECESSION SINCE WORLD WAR II GM'S NORTH AMERICAN OPERATIONS HAD A THIRDQUARTER LOSS OF 649 MILLION OR 642 FOR EACH VEHICLE SOLD BEFORE INTEREST TAXES AND A ONETIME PRETAX PLANTCLOSING CHARGE OF 950 MILLION A YEAR EARLIER GM HAD A LOSS OF 226 BILLION BEFORE INTEREST AND TAXES THE SHARP IMPROVEMENT REFLECTS SEVERAL FACTORS A 4 INCREASE IN SALES VOLUME ABOUT 408 MILLION SAVED FROM CUTTING CONSUMER REBATES ELIMINATION OF UNPROFITABLE FLEET SALES ABOUT 2 BILLION IN PURCHASING SAVINGS SO FAR THIS YEAR AND JOB CUTTING INCLUDING ALL CHARGES HOWEVER THE NORTH AMERICAN OPERATIONS HAD A NET LOSS OF 112 BILLION COMPARED WITH A NET LOSS OF 189 BILLION A YEAR EARLIER GM'S CHIEF FINANCIAL OFFICER G RICHARD WAGONER CONFIRMED YESTERDAY THAT THE COMPANY'S UNFUNDED PENSION LIABILITY THE GAP BETWEEN ITS PROJECTED PENSION PAYOUTS AND PENSION ASSETS WILL LIKELY SWELL TO 24 BILLION BY THE END OF THE YEAR FROM 14 BILLION AT THE END OF 1992 OF THAT INCREASE 8 BILLION IS RELATED TO THE EFFECT OF DECLINING INTEREST RATES ON THE VALUE OF PENSION ASSETS AND 2 BILLION REFLECTS RICHER BENEFITS GRANTED TO THE UAW IN THE NEW TENTATIVE CONTRACT REACHED ON SUNDAY HE SAID LEADERS OF LOCAL GM UNIONS APPROVED THE TENTATIVE AGREEMENT IN DETROIT YESTERDAY AND SET A NOV 10 DEADLINE FOR RATIFICATION THE COSTS OF THE UAW DEAL BEGAN HURTING GM'S INCOME STATEMENT EVEN BEFORE THE START OF THE RANKANDFILE RATIFICATION VOTE GM SAID IT REDUCED THIRDQUARTER PROFIT BY 1438 MILLION TO REFLECT CERTAIN LUMPSUM PAYMENTS CALLED FOR UNDER THE NEW UAW PACT IN ADDITION TO THE 589 MILLION AFTERTAX CHARGE REFLECTING HIGHER PLANTCLOSING COSTS THE CONTRACT ALSO CALLS FOR GM TO PAY AS MUCH 4 BILLION TO WORKERS IDLED BY SALES DOWNTURNS AND EFFICIENCY IMPROVEMENTS AND GIVES PAY INCREASES VALUED BY THE UAW AT 13000 A WORKER OVER THE THREEYEAR CONTRACT TERM ALTOGETHER INCREASED WAGES PENSION LIABILITIES AND LIABILITIES FOR JOBLESS BENEFITS IN THE NEW UAW CONTRACT COULD COST GM MORE THAN 10 BILLION GM EXECUTIVES SAY THEY WILL TRY TO OFFSET THOSE COSTS BY STEPPING UP EFFORTS TO BOOST PRODUCTIVITY AND SHEDDING UNNEEDED EMPLOYEES IN THE COMPANY'S FACTORIES THE CONTRACT IS CERTAINLY NOT ALL WE HOPED FOR MR WAGONER SAID BUT HE SAID GM CAN PAY FOR THE PACT AND WIPE OUT THE UNFUNDED PENSION LIABILITY WITHOUT CUTTING PRODUCT PROGRAMS DESPITE THE PLANT CLOSING CHARGE GM STILL EXPECTS TO ACHIEVE MR SMITH'S GOAL OF BREAKING EVEN IN DOMESTIC VEHICLE OPERATIONS BEFORE INTEREST TAXES AND RETIREE MEDICAL CHARGES MR WAGONER SAID IN A NEWS CONFERENCE YESTERDAY THAT WILL REQUIRE A PROFIT OF 400 MILLION IN NORTH AMERICA BEFORE INTEREST AND TAXES DURING THE CURRENT FOURTH QUARTER BUT GM OFFICIALS ALSO REALIZE THEY CAN'T MUCH LONGER MEASURE SUCCESS IN NORTH AMERICA USING EARNINGS BEFORE INTEREST AND TAXES WE CAN'T GET AWAY FROM THE FACT THAT WE HAD HUGE LOSSES IN NORTH AMERICA MR WAGONER SAID AND WITH ITS BALANCE SHEET WEIGHED DOWN BY DEBT AND THE HUGE UNFUNDED PENSION LIABILITY GM STILL CAN'T AFFORD A MAJOR SLUMP IN THE US ECONOMY DESPITE THE COSTCUTTING PROGRESS MR SMITH'S MANAGEMENT IS MAKING WE NEED TO RUN PRETTY GOOD FOR THE NEXT COUPLE OF YEARS MR WAGONER SAID WE NEED TO GENERATE CASH TO PLUG HOLES IN THE BALANCE SHEET GM'S OPERATING CASH RESERVES DROPPED TO 738 BILLION ON SEPT 30 FROM 834 BILLION ON JUNE 30 GM'S BRIGHTEST SPOTS CONTINUED TO BE MOSTLY OVERSEAS ITS INTERNATIONAL AUTO OPERATIONS EARNED 4223 MILLION IN THE THIRD QUARTER UP 62 FROM 2601 MILLION A YEAR EARLIER THE IMPROVEMENT CAME LARGELY FROM RECORD PROFITS IN LATIN AMERICAN OPERATIONS STRONG OVERSEAS EARNINGS BOOSTED GM'S WORLDWIDE AUTOMOTIVE PROFIT TO 152 A VEHICLE IN THE LATEST QUARTER EXCLUDING THE ONETIME US RESTRUCTURING CHARGE THAT COMPARES WITH 55 A VEHICLE AT FORD AND ABOUT 600 A VEHICLE FOR CHRYSLER GM'S THREE BIG NONAUTOMOTIVE UNITS POSTED COMBINED NET INCOME OF 5897 MILLION UP 23 FROM A COMBINED NET OF 5766 MILLION A YEAR EARLIER IN THE FIRST NINE MONTHS OF THE YEAR GM EARNED 129 BILLION OR 85 CENTS A SHARE COMPARED WITH A NET LOSS OF 197 BILLION OR 362 A SHARE A YEAR EARLIER NINEMONTH REVENUE ROSE 4 TO 10117 BILLION FROM 9697 BILLION 9310290081 931029 US CONSTRUCTION IS SEEN INCREASING BY 9 NEXT YEAR BY JACQUELINE SIMMONS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TOTAL NEW CONSTRUCTION IN THE US IS EXPECTED TO RISE 9 IN 1994 ACCORDING TO THE ANNUAL FORECAST FROM MCGRAWHILL INC'S CONSTRUCTIONINFORMATION UNIT THE FW DODGE REPORT PROJECTS TOTAL CONSTRUCTION WILL CLIMB TO 2851 BILLION NEXT YEAR FOLLOWING AN EXPECTED 4 GAIN THIS YEAR TO 2611 BILLION A YEAR AGO THE FORECAST EXPECTED A 1993 INCREASE OF 8 THE 1994 FORECAST WOULD REPRESENT THE THIRD YEAR IN A ROW FOR IMPROVED CONSTRUCTION FOLLOWING A 9 DIVE IN 1990 AND 6 IN 1991 DURING THE RECESSION THE VALUE OF TOTAL CONSTRUCTION IN 1992 HOWEVER SHOT UP 9 TO 2513 BILLION AS THE ECONOMY CONTINUES TO RECOVER SINGLEFAMILY HOUSING IS EXPECTED TO RISE 9 TO 1162 BILLION IN 1994 EDGING FURTHER TOWARD ITS POTENTIAL SAID ROBERT A MURRAY VICE PRESIDENT ECONOMIC AFFAIRS AND CHIEF ECONOMIST FOR MCGRAWHILL CONSTRUCTION INFORMATION GROUP DESPITE FALLING INTEREST RATES SINGLEFAMILY CONSTRUCTION ROSE AN ESTIMATED 6 THIS YEAR FOLLOWING A 23 SURGE IN 1992 THE DODGE FORECAST EXPECTS A 9 GAIN IN 1994 FOR HOUSING TO 1162 BILLION MR MURRAY FORECASTS CONTINUED IMPROVEMENT IN CONSTRUCTION NEXT YEAR ACROSS THE BOARD THE NEXTLARGEST CATEGORY PUBLIC WORKS IS EXPECTED TO RISE 9 IN 1994 TO A TOTAL 559 BILLION NEXT YEAR AIDED BY INCREASED FEDERAL FUNDING FOR TRANSPORTATIONRELATED WORKS INSTITUTIONAL BUILDINGS SUCH AS EDUCATIONAL HOSPITAL AND HEALTH FACILITIES WHICH WERE FLAT THIS YEAR AT 457 BILLION ARE EXPECTED TO INCREASE 9 TO 496 BILLION IN 1994 INCOME PROPERTIES A CATEGORY THAT INCLUDES MULTIFAMILY HOUSING AS WELL AS OFFICES HOTELS AND SHOPPING CENTERS ARE EXPECTED TO JUMP 11 IN 1994 TO 487 BILLION AFTER A 2 GAIN THIS YEAR AND A 5 SLIDE IN 1992 AND MANUFACTURING BUILDINGS THE SMALLEST CATEGORY ARE EXPECTED TO SHOW A 14 GAIN TO 86 BILLION THE DODGE REPORT FORECASTS A 6 RISE IN SINGLEFAMILY HOUSING UNITS NEXT YEAR TO 1050000 UNITS WITH THE STRONGEST GAIN EXPECTED IN THE SOUTH ATLANTIC AREA NOT MUCH CAN BE EXPECTED FROM THE WEST THE REPORT SAID DUE TO THE DISTRESSED SOUTHERN CALIFORNIA ECONOMY PUBLICWORKS SPENDING WILL BE LED BY TRANSPORTATION WHILE ENVIRONMENTAL CONSTRUCTION EXPECTED TO RISE A MEAGER 1 THIS YEAR WILL INCREASE 4 IN 1994 REBUILDING EFFORTS FROM THIS SUMMER'S MIDWEST FLOOD SHOULD GIVE A PUSH TO BOTH TYPES OF PUBLIC WORKS CONSTRUCTION WELL INTO 1994 THE FORECAST SAID DESPITE A PROJECTED 9 GAIN IN INSTITUTIONAL BUILDING HEALTHCARE BUILDING COULD BE THE ONE EXCEPTION THE REPORT SAID STILL STALLED BY UNCERTAINTY OVER THE SHAPE OF THE REFORM PACKAGE OF THE CLINTON ADMINISTRATION BUT THE MARKET SHOULD SUPPORT GENERALLY STRONGER LEVELS OF BUILDING ACTIVITY BY MIDDECADE THE ANALYSIS SAID INCOMEPROPERTY BUILDING STILL FACES HURDLES INCLUDING THE GLUT OF COMMERCIAL SPACE ON THE MARKET WHICH DODGE ESTIMATED AT 700 MILLION TO 800 MILLION SQUARE FEET OR A 35YEAR SUPPLY AND IT NOTED A STRONG CASE CAN BE MADE THAT THE AMOUNT OF OFFICE SPACE NEEDED PER WORKER IS LESS TODAY THAN TEN YEARS AGO GIVEN COMPUTING AND COMMUNICATIONS CAPABILITIES AVAILABLE AT HOME AND ON THE ROAD NONETHELESS VACANCY RATES HAVE BEEN RECEDING FOR SEVERAL QUARTERS AND THE STATISTICAL PATTERNS FOR OFFICES WAREHOUSES AND HOTELS SUGGEST THAT THESE CATEGORIES HAVE REACHED THEIR NATURAL BOTTOM' AND THE POTENTIAL FOR CHANGE IS NOW ON THE UPSIDE THE REPORT SAID 9310290080 931029 FINANCING BUSINESS KENNAMETAL INC KENNAMETAL INC LATROBE PA THE MAKER OF CARBIDE PRODUCTS CERAMICS AND MACHINECUTTING TOOLS SAID IT HAS FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF UP TO 1715000 COMMON SHARES IN THE USAND ABROAD THE COMPANY SAID IT PLANS TO OFFER 1372000 SHARES IN THE US AND 343000 SHARES INTERNTIONALLY THE SHARES OFFERED WOULD BE PRIMARY SHARES ONLY KENNAMETAL SAID IT HAS GRANTED UNDERWRITERS A 30DAY OPTION TO PURCHASE UP TO AN ADDITIONAL 257250 COMMON SHARES TO COVER OVERALLOTMENTS IF ANY GOLDMAN SACHS & CO WILL BE LEAD MANAGER OF THE U S OFFERING GOLDMAN SACHS INTERNATIONAL LIMITED WILL LEAD MANAGE THE INTERNATIONAL OFFERING THE COMPANY SAID IT INTENDS TO USE NET PROCEEDS OF THE OFFERING TO REPAY DEBT INCURRED IN THE RECENT ACQUISITION OF HERTEL AG A GERMAN MANUFACTURER AND DISTRIBUTOR OF TOOLS TOOLING SYSTEMS AND SUPPLIES FOR THE EUROPEAN METALWORKING INDUSTRY AND FOR GENERAL CORPORATE PURPOSES 9310290079 931029 MOTO PHOTO EXTENDS WARRANTS DAYTON OHIO MOTO PHOTO INC SAID ITS BOARD VOTED TO EXTEND THE EXERCISE PERIOD OF ITS COMMON STOCK PURCHASE WARRANTS TO PERMIT THE EXERCISE OF THE WARRANTS THROUGH NOV 25 1994 THEY WERE SCHEDULED TO EXPIRE NOV 25 THE FRANCHISER AND OPERATOR OF ONEHOUR PHOTOFINISHING STORES SAID THE WARRANTS ARE CURRENTLY EXERCISABLE AT A PRICE OF 425 A SHARE OF THE COMPANY'S COMMON STOCK THE COMPANY ORIGINALLY ISSUED THE WARRANTS IN NOVEMBER 1985 IN CONNECTION WITH A PUBLIC OFFERING OF UNITS CONSISTING OF ONE SHARE OF 120 CUMULATIVE CONVERTIBLE PREFERRED STOCK AND TWO COMMON STOCK PURCHASE WARRANTS 9310290078 931029 AMERICAN ELECTRIC POWER UNITS COLUMBUS OHIO AMERICAN ELECTRIC POWER CO SAID TWO OPERATING UNITS WILL REDEEM THREE SERIES OF BONDS NOV 27 OHIO POWER CO CANTON OHIO SAID IT WILL REDEEM ALL 67786000 PRINCIPAL AMOUNT OUTSTANDING OF ITS 7 3/4 SERIES BONDS DUE 1999 AT 10175 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THROUGH THE REDEMPTION DATE OHIO POWER ALSO WILL REDEEM ALL 40 MILLION PRINCIPAL AMOUNT OF 8 3/8 SERIES BONDS DUE 2003 AT 10154 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST CHEMICAL BANK NEW YORK IS THE REDEMPTION AGENT THE COMPANY SAID IN ADDITION APPALACHIAN POWER CO ROANOKE VA WILL REDEEM THE ENTIRE 50 MILLION PRINCIPAL AMOUNT OF ITS 8 1/8 SERIES BONDS DUE 2003 AT 10165 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST BANKERS TRUST CO IS THE REDEMPTION AGENT 9310290077 931029 LEISURE & ARTS ON SPORTS PHIL ON LIFE WITHOUT MIKE BY FREDERICK C KLEIN CHICAGO THE NICE THING ABOUT COACHING A TEAM WITH MICHAEL JORDAN ON IT WAS THAT YOU WON CHAMPIONSHIPS THE MAYBENOTSONICE THING WAS THAT YOU DIDN'T GET MUCH CREDIT FOR IT SUCH HAS BEEN THE FATE OF PHIL JACKSON HIS CHICAGO BULLS WON NATIONAL BASKETBALL ASSOCIATION CROWNS IN 1991 '92 AND '93 BUT IN NONE OF THOSE YEARS WAS HE VOTED THE LEAGUE'S BEST COACH IN 1993 THE YEAR OF THE THREEPEAT HE RECEIVED NO COACHOFTHEYEAR VOTES AS IN ZERO AS A CERTIFIED MEMBER OF THE COACHES' UNION JACKSON HAD BEEN KNOWN TO PLAY THE NORESPECT TUNE DURING HIS TEAM'S TITLE CAMPAIGNS IN MATTERS OF MOTIVATION YOU TAKE WHAT YOU CAN GET REMINDED OF THIS RECENTLY HE SMILED APOLOGETICALLY SAYING WE GOT AMPLE CREDIT FOR WHAT WE DID BOTH INDIVIDUALLY AND COLLECTIVELY I HAVE NO COMPLAINTS BUT HE NOTED THAT IN LIGHT OF HIS TEAM'S NEW REALITY YOU HEARD ABOUT JORDAN'S QUITTING DIDN'T YOU HE WOULDN'T BE SURPRISED IF HE USED THAT THEME AGAIN MICHAEL'S RETIREMENT ADDS A WHOLE NEW DIMENSION TO OUR SEASON HE SAID IN OBVIOUS UNDERSTATEMENT OUR FOCUS HAS CHANGED FROM FINDING A WAY TO WIN ANOTHER TITLE TO SIMPLY FINDING A WAY TO WIN IT SHOULD BE INTERESTING THE BETTING IN LAS VEGAS WHERE ACTION SPEAKS LOUDER THAN WORDS IS THAT NO FOURPEAT IS IN THE BULLS' FUTURE AT CAESARS PALACE SPORTS BOOK THE ODDS ON SUCH AN OCCURRENCE ROSE FROM 2 TO 1 BEFORE JORDAN'S ANNOUNCEMENT TO A PRESENT 10 TO 1 STILL IT'S LIKELY THAT JACKSON WILL FIND A WAY TO WIN MORE THAN A FEW GAMES MAKING THE SEASON INTERESTING FOR TEAMS BESIDES HIS OWN THIS AFTER ALL IS THE ONLY MAN TO HAVE COACHED CHAMPIONSHIP TEAMS IN BOTH THE NBA AND THE MINORLEAGUE CONTINENTAL BASKETBALL ASSOCIATION AND ONE OF NINE TO HAVE PLAYED ON AN NBA CHAMP THE 1973 KNICKS AS WELL AS COACHED ONE JACKSON'S BIOGRAPHY BESPEAKS THE SORT OF RESOURCEFULNESS THAT COULD COME IN HANDY THIS SEASON BORN IN MONTANA AND RAISED TO A HEIGHT OF 6FOOT8 IN SMALLTOWN NORTH DAKOTA HE MADE IT AS A BASKETBALL PLAYER WITH THE BIGTOWN NEW YORK KNICKS IN THAT TEAM'S LATE 1960SEARLY '70S GLORY YEARS EVEN THOUGH THE WORD THAT BEST DESCRIBED HIS ONCOURT STYLE WAS THE BOXING ADJECTIVE WILLING ALTHOUGH HE SAYS THAT AS A YOUTH ALL HE REALLY WANTED TO DO WAS PLAY BALL HE ALSO FOUND TIME AT THE UNIVERSITY OF NORTH DAKOTA TO EARN A DEGREE WITH A TRIPLE MAJOR OF PHILOSOPHY PSYCHOLOGY AND RELIGION RARELY A STARTER AND NEVER A STAR JACKSON STILL SPENT 13 SEASONS AS A PROFESSIONAL PLAYER AFTER WHICH HE BECAME AN ASSISTANT COACH WITH THE NEW JERSEY NETS WHOSE UNIFORM HE'D LAST WORN A COUPLE YEARS OF THAT LEFT HIM WONDERING WHAT LIFE WITHOUT HOOPS WOULD BE LIKE SO HE RETURNED TO MONTANA TO OPEN A HEALTH CLUB WHEN IN 1983 THE CBA'S ALBANY PATROONS CALLED HE WAS MORE THAN READY TO FORGO EXERCISE BIKES FOR XS AND OS AFTER FIVE YEARS IN ALBANY AND TWO AS A BULLS ASSISTANT HE WAS PICKED FOR CHICAGO'S TOP JOB REPLACING DOUG COLLINS THE BULLS' FIRST TITLE CAME IN HIS SECOND SEASON AND JORDAN'S SEVENTH UNLIKE COLLINS A FORWARD SORT JACKSON SUBLIMATED HIS EGO TO THOSE OF HIS PLAYERS A STANCE MANY PRESENTDAY COACHES FIND SENSIBLE MOREOVER HE'S BEEN A DILIGENT DELEGATOR SHARING BOTH COACHING DUTIES AND CREDIT WITH ASSISTANTS TEX WINTER JOHN BACH AND JIM CLEAMONS THE FIRST TWO OF WHOM HAVE LOGGED A TOTAL OF 88 YEARS IN THE PROFESSION JACKSON SAYS HE TURNS OVER THE WHISTLE TO ONE OF THE THREE FOR MANY PRACTICES IF ONLY BECAUSE THE PLAYERS GET TIRED OF HEARING THE SAME VOICE SOME PEOPLE CLOSE TO THE BULLS SAY THE TEAM FINALLY SUCCEEDED WHEN JACKSON CONVINCED JORDAN OF THE NECESSITY OF ANOTHER SUBLIMATION THAT OF JORDAN'S ENORMOUS TALENT FOR THE GREATER GOOD THE 48YEAROLD COACH DOESN'T PUT IT QUITE THAT WAY MATURITY HAD SOMETHING TO DO WITH OUR WINNING AND BEING ABLE TO BLEND EVERYONE'S SKILLS NOT JUST MICHAEL'S HE SAYS HE GOES ON EVEN WITH MICHAEL WE NEVER SAW OURSELVES AS OVERWHELMINGLY TALENTED AND IN FACT I THINK THERE'S SUCH A THING AS A TEAM HAVING TOO MANY GOOD PLAYERS I'VE ALWAYS THOUGHT THE TRADE THAT BROUGHT IN DAVE DEBUSSCHERE FOR WALT BELLAMY AND HOWARD KOMIVES MADE CHAMPS OF THE KNICKS EVEN THOUGH IT PROBABLY REDUCED THEIR OVERALL TALENT LEVEL TWO THINGS ABOUT MICHAEL GOT US TO THE TOP ONCE HE'D LEARNED TO UNDERSTAND HIS GIFTS ONE WAS THAT HE WAS SO MUCH BETTER THAN THE OTHER PLAYERS THAT IT WASN'T HARD FOR THEM TO ACCEPT SUBORDINATE ROLES THE OTHER WAS THE GREAT EFFORT ON BOTH DEFENSE AND OFFENSE HE PUT INTO EVERY GAME HE PLAYED WHEN YOUR STAR GOES ALL OUT EVERY NIGHT THE OTHERS TEND TO FOLLOW SUIT THE LOSS OF JORDAN POSES WHAT MIGHT BE CALLED A TECHNICAL PROBLEM FOR JACKSON HOW TO REPLACE THE 32 POINTS THE STAR AVERAGED NIGHTLY MANY OF THEM COMING AFTER OTHER SHOT OPTIONS HAD FAILED AND WITH THE SHOT CLOCK ABOUT TO EXPIRE AND THAT IN TURN LEADS TO THE MORE COMPLEX MATTER OF REDEFINING RESPONSIBILITIES IT'S NOT SO MUCH THAT WE'RE REPLACING MICHAEL IT'S THAT WE'RE A DIFFERENT TEAM NOW WITH DIFFERENT RELATIONSHIPS JACKSON SAYS THE NEW BULLS MIX WILL INCLUDE RETURNEES SCOTTIE PIPPEN HORACE GRANT AND BJ ARMSTRONG AND NEWCOMER TONI KUKOC THE 25YEAROLD 6FOOT11 CROATIAN WHOM THE TEAM PURSUED AROUND EUROPE AFTER DRAFTING HIM IN 1990 A SKILLED PASSER AND BALLHANDLER KUKOC IS TRYING TO FIND A POSITION WHILE HE ADJUSTS TO THE NBA'S HIGHER LEVEL OF PLAY WITH JORDAN THE TEAM MIGHT HAVE BROUGHT KUKOC ALONG SLOWLY IT DOESN'T HAVE THAT LUXURY NOW THE BULLS' PROGRESS DURING THE EXERCISES LEADING TO THE NEW SEASON THAT BEGINS NEXT FRIDAY NIGHT WAS HAMPERED BY OFFSEASON WRIST AND ANKLE SURGERY THAT KEPT PIPPEN OUT UNTIL THIS WEEK AND JACKSON SAYS THE KIND OF MOURNING THAT FOLLOWED JORDAN'S ANNOUNCEMENT LATELY THOUGH THINGS HAVE PICKED UP HE SAYS WE'RE TRYING TO LOOK AT THIS LIFE WITHOUT MIKE AS AN OPPORTUNITY SOMETHING THAT'LL REVEAL OUR CAPABILITIES HE CONCLUDES WE HOPE WE LIKE WHAT WE FIND OUT 9310290076 931029 WHO'S NEWS IOMEGA CORP IOMEGA CORP ROY UTAH FRED WENNINGER 54 RESIGNED AS CHIEF EXECUTIVE OFFICER AT THIS DISKDRIVE MAKER BUT WILL CONTINUE AS PRESIDENT FOR AN INDEFINITE PERIOD THE COMPANY SAID SENIOR VICE PRESIDENT LEON STACIOKAS 65 WAS NAMED ACTING CHIEF EXECUTIVE OFFICER 9310290075 931029 FINANCING BUSINESS OMNICOM GROUP OMNICOM GROUP NEW YORK ISSUED 143750000 OF 45 TO 625 STEPUP SUBORDINATED DEBENTURES DUE 2000 ON SEPT 1 THROUGH A PRIVATE PLACEMENT OFFERING THE AVERAGE ANNUAL INTEREST RATE THROUGH THE YEAR 2000 IS 542 THE DEBENTURES ARE NONCALLABLE FOR THREE YEARS AND MAY BE CONVERTED INTO COMMON SHARES OF THE ADAGENCY HOLDING COMPANY AT A CONVERSION PRICE OF 5488 THE PROCEEDS WERE USED TO REDUCE BORROWINGS UNDER VARIOUS CREDIT FACILITIES THE COMPANY SAID ON OCT 8 ALL OF THE COMPANY'S OUTSTANDING 7 CONVERTIBLE SUBORDINATED DEBENTURES WHICH HAD A TOTAL VALUE OF ABOUT 86 MILLION WERE CONVERTED INTO SHARES OF THE COMPANY'S COMMON STOCK THE COMPANY SAID 9310290074 931029 INTERNATIONAL ERICSSON WINS POLISH ORDER THE AGREEMENT IMPLIES ESTABLISHMENT OF A JOINT VENTURE BETWEEN THE SWEDISH GROUP AND ELECTRONICS COMPANY GZE UNIMOR OF POLAND FOR DEVELOPMENT MANUFACTURING AND MARKETING OF ERICSSON DEFENSECOMMUNICATIONS EQUIPMENT AND SYSTEMS IN POLAND AND IN CERTAIN EXPORT MARKETS 9310290073 931029 INTERNATIONAL WORLD ECONOMY CHINA'S VIOLATION OF PACTS WITH US PUTS MOSTFAVOREDNATION STATUS IN JEOPARDY BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LAST SUMMER CHINESE OFFICIALS THOUGHT THEY'D WON THE MFN WAR THE ANNUAL WASHINGTON BATTLE ABOUT WHETHER TO GRANT CHINA SOCALLED MOST FAVORED NATION OR NONDISCRIMINATORY TARIFF TREATMENT HAD JUST ENDED WITH YET ANOTHER ONEYEAR EXTENSION IN BEIJING'S FAVOR CHINESE BUREAUCRATS WERE CONFIDENT THAT VICTORY WAS THEIRS FOR GOOD AFTER ALL THEY REASONED THE US IS A CAPITALISTIC COUNTRY SO WHEN US CAPITALISTS REALLY WANT SOMETHING LIKE TRADE WITH CHINA WITHOUT POLITICAL OBSTACLES WHAT CAN PRESIDENT CLINTON DO BUT OBEY THE BUREAUCRATS TOOK SPECIAL CHEER FROM THE SIGHT OF US BUSINESSMEN LOBBYING FOR CHINA AND THEIR OWN PROFITS AS NEVER BEFORE BUT THE CONFIDENT BEIJING BUREAUCRATS GOT IT WRONG THE ISSUE ONLY TOOK A RECESS AND THAT IS PARTLY THEIR OWN FAULT THUS CHINA'S MFN PRIVILEGES COULD EXPIRE NEXT JULY 3 EVEN THOUGH NOBODY REALLY WANTS THEM TO BUT UNLESS BEIJING HONORS SEVERAL AGREEMENTS IT HAS WITH WASHINGTON AND TREATS DISSENTERS LESS HARSHLY THE CLINTON ADMINISTRATION INSISTS IT WON'T EXTEND LOW TARIFFS ANOTHER YEAR LET ALONE TRY TO REVISE THE LAWS THAT REQUIRE THE QUARRELSOME ANNUAL REVIEWS WITHOUT MFN NEARLY ALL IMPORTS FROM CHINA WOULD FACE PROTECTIONIST DUTIES DATING FROM THE INFAMOUS SMOOTHAWLEY TARIFFS OF 1930 THOSE ON STUFFED TOYS FOR EXAMPLE WOULD RISE TO 70 FROM ZERO CHINA'S HUGE TRADE SURPLUS WITH AMERICA 182 BILLION LAST YEAR AND PERHAPS 24 BILLION THIS YEAR WOULD PLUNGE JEOPARDIZING A CASH FLOW THAT FUELS CHINA'S ECONOMIC BOOM THAT OUTCOME IS PRECISELY WHAT THE CLINTON ADMINISTRATION DOESN'T WANT AFTER MUCH DITHERING ABOUT HOW TO BALANCE US VALUES HUMAN RIGHTS AND DEMOCRACY AGAINST US INTERESTS TRADE AND SECURITY THE WHITE HOUSE DECIDED RECENTLY TO OVERHAUL CHINA POLICY IT ORGANIZED HIGHLEVEL EXCHANGES WITH CHINESE DEFENSE POLITICAL AND ECONOMIC OFFICIALS WHICH WILL CULMINATE IN NOVEMBER'S SEATTLE SUMMIT MEETING OF MR CLINTON AND CHINESE PRESIDENT JIANG ZEMIN IT HOPES FOR BROADPOLICY UNDERSTANDINGS WHICH WOULD LET LOWERRANKING OFFICIALS RESOLVE TRICKY PROBLEMS MORE DISCREETLY SLIPPING SMOOTHLY PAST THE MFN DEADLINE WAS ONE SPECIFIC GOAL SOMETHING ELSE HAS SLIPPED INSTEAD FOR CHINA KEEPS VIOLATING SPECIFICS OF SEVERAL BILATERAL AGREEMENTS FOR EXAMPLE IT BLOCKS INSPECTIONS OF FACTORIES THAT ALLEGEDLY USE PRISON LABOR TO MAKE EXPORT GOODS IT WON'T STOP EXPORTERS FROM SNEAKING AS MUCH AS 4 BILLION YEARLY OF ILLEGAL TEXTILES PAST US IMPORT QUOTAS IT DOESN'T ENFORCE AN AGREEMENT TO PROTECT INTELLECTUAL PROPERTY AND IT HASN'T DROPPED VARIOUS MARKETACCESS RESTRICTIONS AS PROMISED MEANTIME IT BROKE A NUCLEARTEST MORATORIUM AND THE US CLAIMS EXPORTS DANGEROUS WEAPONRY IN VIOLATION OF AN INTERNATIONAL TREATY AFTER A STRETCH OF GOOD BEHAVIOR WHILE A BID TO HOST THE OLYMPICS WAS PENDING CHINA'S POLITICAL COPS ARE AGAIN HARASSING DISSIDENTS ON SEPT 25 NATIONAL SECURITY ADVISER ANTHONY LAKE AND ASSISTANT SECRETARY OF STATE WINSTON LORD RAISED THIS WITH THE CHINESE AMBASSADOR THEY SAID WASHINGTON IS READY TO INTENSIFY RELATIONS ON A WIDE RANGE OF ISSUES BUT EXPRESSED A GREAT SENSE OF URGENCY ON MFN THEY SAID THE US ISN'T SEEKING NEW COMMITMENTS BUT WANTS CHINA TO HONOR OLD ONES VIA EARLY AND MEANINGFUL PROGRESS ON DIVISIVE PROBLEMS OTHERWISE THEY WARNED SINOAMERICAN RELATIONS FACE THE POSSIBILITY OF A DOWNWARD SPIRAL SINCE THEN NOTHING MUCH HAS CHANGED OTHER THAN MORE HASSLING OF POLITICAL CRITICS BUT THINGS MOVE SLOWLY IN BEIJING AND MR CLINTON MAY HEAR REASSURING WORDS FROM PRESIDENT JIANG IN SEATTLE US COMPANIES HOPE SO THEY LIKE TO THINK THEY'RE IN CHINA NOT ONLY FOR PROFIT BUT ALSO AS AGENTS FOR DESIRABLE SOCIAL CHANGE MY HOPE IS THIS MEETING WILL STIMULATE THE ADMINISTRATION TO APPRECIATE THE BEST WAY TO INFLUENCE DEVELOPMENTS IS TO STAY UNDER THE TENT WITH THE CHINESE IF WE WALK AWAY WE'VE LOST ALL LEVERAGE SAYS JOHN YASINSKY WHO DIRECTS A BOOMING CHINA BUSINESS FOR WESTINGHOUSE ELECTRIC CORP BUT BUSINESSMEN WORRY THEY CONSIDER MR CLINTON OVERLY WILLING TO PUSH HUMAN RIGHTS DESPITE POSSIBLE REPRISALS AGAINST THEIR VENTURES WHICH WOULD BENEFIT THEIR EUROPEAN AND JAPANESE RIVALS AND THEY BELIEVE CONGRESS IS EVEN LESS CAUTIOUS TO AVOID THE WORST THE CLINTON ADMINISTRATION INSISTS CHINA CAN'T FINESSE THE MFN ISSUE WITH A FEW GRANDSTAND GESTURES AS DECISION TIME NEARS IN MAY MR CLINTON SHOULD LEARN IN SEATTLE IF BEIJING TAKES THIS THREAT SERIOUSLY OR THINKS HE'S MERELY BLUFFING 9310290072 931029 ECONOMY FEDERAL DEFICIT SHRANK IN FISCAL 1993 TO BELOW PREDICTIONS OF TWO AGENCIES BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL GOVERNMENT ENDED ITS FISCAL YEAR WITH A DEFICIT OF 25495 BILLION NARROWER THAN EITHER THE WHITE HOUSE OFFICE OF MANAGEMENT AND BUDGET OR THE CONGRESSIONAL BUDGET OFFICE HAD ANTICIPATED JUST TWO MONTHS AGO MEASURED AGAINST THE SIZE OF THE ECONOMY THE DEFICIT REMAINS LARGE BY HISTORICAL STANDARDS IT WAS EQUAL TO 41 OF THE GROSS DOMESTIC PRODUCT THE VALUE OF ALL GOODS AND SERVICES PRODUCED IN THE NATION COMPARED WITH 49 IN 1992 BETWEEN 1950 AND 1981 IN CONTRAST THE DEFICIT NEVER GOT ABOVE 35 OF GDP EVEN IN RECESSIONS PRESIDENT CLINTON HAD LITTLE TO DO WITH THE SMALLERTHANPREDICTED DEFICIT INDEED HE TRIED UNSUCCESSFULLY TO GET CONGRESS TO ENACT AN ECONOMICSTIMULUS BILL THAT WOULD HAVE WIDENED THE FIGURE SLIGHTLY THE CLINTONBACKED DEFICITREDUCTION MEASURE THAT NARROWLY PASSED CONGRESS IN AUGUST DIDN'T ALTER SPENDING OR RECEIPTS FOR FISCAL 1993 WHICH ENDED SEPT 30 BUT THAT DIDN'T STOP MR CLINTON FROM TAKING SOME CREDIT AFTER YEARS OF BAD POLICIES AND BAD ESTIMATES WHEN LOWER DEFICITS ACTUALLY WENT FAR HIGHER IT'S PLEASING TO ME TO SEE THAT A DEFICIT CAME IN LOWER THAN IT WAS PROJECTED BECAUSE OF EFFORTS DIRECTED TO LOWER INTEREST RATES HE SAID THE DECLINE IN INTEREST RATES THAT FOLLOWED PRESENTATION OF MR CLINTON'S DEFICITREDUCTION PROPOSAL EARLIER THIS YEAR DID CONTRIBUTE TO THE NARROWERTHANPROJECTED DEFICIT THE GOVERNMENT'S INTEREST TAB IS SMALLER AND THE RATE DECLINE HAS MADE BANKS AND THRIFTS MORE PROFITABLE REDUCING THE COSTS OF THE GOVERNMENT DEPOSIT INSURANCE PROGRAM IN EARLY SEPTEMBER THE WHITE HOUSE BUDGET OFFICE PREDICTED THAT THE DEFICIT WOULD END AT 2853 BILLION REVENUE TURNED OUT TO BE ABOUT 9 BILLION HIGHER PRIMARILY BECAUSE CORPORATE PROFITS WERE HIGHER THAN EXPECTED SPENDING ON A VARIETY OF PROGRAMS WAS 17 BILLION LESS THAN EXPECTED THE CONGRESSIONAL BUDGET OFFICE CLOSER TO THE MARK PREDICTED THE DEFICIT WOULD BE 266 BILLION IN THE WANING DAYS OF THE BUSH ADMINISTRATION THE WHITE HOUSE BUDGET OFFICE HAD PROJECTED A 1993 DEFICIT OF 3273 BILLION CHANGES IN TECHNICAL ESTIMATES AND DELAYS IN WINNING CONGRESSIONAL APPROVAL FOR SPENDING TO CLOSE INSOLVENT THRIFT INSTITUTIONS ACCOUNT FOR MOST OF THE DIFFERENCE THE TREASURY SAID DELAYS IN APPROVING SPENDING REDUCED OUTLAYS BY 15 BILLION THIS YEAR BUT WILL INCREASE THEM IN FUTURE YEARS TOTAL FEDERAL OUTLAYS LAST YEAR CAME TO 1408 TRILLION UP NEARLY 2 FROM THE YEAR BEFORE SOCIAL SECURITY SPENDING WAS UP 59 TO 30459 BILLION MEDICARE SPENDING ROSE 97 TO 13055 BILLION TOTAL DEFENSE SPENDING IN CONTRAST DROPPED BY 26 TO 29059 BILLION TOTAL RECEIPTS CAME TO 1153 TRILLION UP 58 INDIVIDUAL INCOMETAX RECEIPTS TOTALED 50968 BILLION UP 71 PRIMARILY BECAUSE OF THE STRONGER ECONOMY CORPORATETAX AND PAYROLLTAX RECEIPTS WERE ALSO UP STRONGLY THE FEDERAL GOVERNMENT RAN A SURPLUS OF 83 BILLION IN SEPTEMBER UP FROM 531 BILLION IN SEPTEMBER 1992 BECAUSE CERTAIN TAX PAYMENTS ARE DUE IN SEPTEMBER THE GOVERNMENT USUALLY RUNS A SURPLUS IN THE MONTH FOR THE CURRENT FISCAL YEAR THE LATEST WHITE HOUSE PREDICTION SHOWS THE DEFICIT AT 2594 BILLION THE CBO ESTIMATE IS 253 BILLION 9310290071 931029 POLITICS & POLICY PUBLIC IS LOSING FAITH IN THE DEMOCRATS' ABILITY TO RUN ECONOMY AND FOREIGN AFFAIRS POLL FINDS BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LAST FALL AMERICANS TURNED MANAGEMENT OF THE COUNTRY OVER TO THE DEMOCRATS THIS FALL THEY'RE HARBORING DOUBTS ABOUT THEIR CHOICE PRESIDENT CLINTON'S MESSY FOREIGNPOLICY PROBLEMS COMING ON THE HEELS OF SUMMERTIME BUDGET WRANGLING HAVE COMBINED TO ERODE PUBLIC CONFIDENCE IN DEMOCRATS' ABILITY TO HANDLE THE CORE ISSUES OF THE ECONOMY AND FOREIGN POLICY A NEW WALL STREET JOURNAL/NBC NEWS POLL INDICATES THAT JUST 22 OF THOSE SURVEYED NOW THINK DEMOCRATS DO A BETTER JOB HANDLING THE NATION'S ECONOMY THAN REPUBLICANS DO THAT'S DOWN FROM 34 WHO CITED THE DEMOCRATS IN MARCH A LARGER SHARE OF THOSE SURVEYED 27 NOW CITE REPUBLICANS AS THE PARTY THAT DOES THE BETTER JOB ON THE ECONOMY THAT MARKS THE FIRST TIME IN TWO YEARS THAT RESPONDENTS HAVE EXPRESSED MORE CONFIDENCE IN REPUBLICANS THAN IN DEMOCRATS IN HANDLING ECONOMIC AFFAIRS AT THE SAME TIME PRESIDENT CLINTON'S PROBLEMS IN SOMALIA AND HAITI HAVE HELPED PRECIPITATE A SHARP DROP IN CONFIDENCE IN DEMOCRATS' ABILITY TO HANDLE WORLD AFFAIRS ONLY 10 OF THOSE SURVEYED THINK DEMOCRATS DO THE BETTER JOB DEALING WITH FOREIGN POLICY DOWN FROM 21 IN APRIL BY CONTRAST 37 THINK REPUBLICANS DO THE BETTER JOB WITH FOREIGN POLICY WITH THE 1993 OFFYEAR ELECTIONS ONLY A WEEK AWAY AND THE CONGRESSIONAL ELECTIONS JUST 53 WEEKS AWAY WE FIND THE DEMOCRATS ON A DOWN NOTE SAY DEMOCRATIC POLLSTER PETER HART AND REPUBLICAN POLLSTER ROBERT TEETER WHO CONDUCTED THE SURVEY FOR THE DEMOCRATS THE POLLSTERS SAY THE ELECTION WATERS LOOK FAIRLY CHOPPY ABOVE ALL THE DECLINE IN DEMOCRATS' FORTUNES SEEMS TO REFLECT THE FACT THAT THE CRISES IN HAITI AND SOMALIA HAVE FORCED MR CLINTON TO SHIFT HIS FOCUS AWAY FROM HIS BASIC AGENDA OF THE ECONOMY AND HEALTH CARE THERE'S A SENSE THAT THOSE FOREIGN CRISES HAVEN'T BEEN HANDLED WELL AND THAT IN TURN APPEARS TO HAVE CREATED DOUBTS ABOUT OVERALL DEMOCRATIC COMPETENCE FOR THE FIRST TIME SINCE OCTOBER 1991 MORE PEOPLE HAVE A POSITIVE IMAGE OF THE REPUBLICAN PARTY THAN OF THE DEMOCRATIC PARTY THE SURVEY FINDS BENEATH THE SURFACE THOUGH THE SURVEY CONVEYS SOME GOOD NEWS FOR DEMOCRATS ON A WIDE RANGE OF ISSUES ABORTION EDUCATION THE ENVIRONMENT RACE RELATIONS AND ABOVE ALL HEALTH CARE PEOPLE STILL EXPRESS MORE CONFIDENCE IN DEMOCRATS THAN IN REPUBLICANS PEOPLE ALSO SEEM TO VIEW DEMOCRATS AS MORE FORWARDLOOKING THAN REPUBLICANS 38 SAY THE DEMOCRATS ARE BETTER AT GENERATING NEW IDEAS COMPARED WITH 17 FOR REPUBLICANS AND 46 SAY THEY THINK THAT THE REPUBLICAN PARTY IS MORE OLDFASHIONED THOSE FINDINGS SUGGEST THAT IF MR CLINTON CAN STEER THE FOCUS BACK TO DOMESTIC AFFAIRS AND IF THE ECONOMY CONTINUES TO SLOWLY IMPROVE DEMOCRATS' PROBLEMS COULD FADE LIKE MR CLINTON HIMSELF PEOPLE INDICATE BY A CLEAR MARGIN THAT THEY WANT THE PRESIDENT TO SPEND LESS TIME ON FOREIGN POLICY MR CLINTON ALSO APPARENTLY NEEDS TO REKINDLE THE SENSE THAT LAST YEAR'S ELECTION WILL CHANGE WASHINGTON ASKED TO GAUGE WHETHER CONGRESS AND THE PRESIDENT ARE WORKING TOGETHER TO END GRIDLOCK NOW THAT BOTH ARE OF THE SAME PARTY A SUBSTANTIAL 72 OF THOSE SURVEYED SAY THINGS ACTUALLY ARE PRETTY MUCH AS THEY WERE BEFORE AND MORE THAN HALF OF THOSE SURVEYED 58 SAY IT'S BETTER TO HAVE DIFFERENT PARTIES CONTROLLING CONGRESS AND THE PRESIDENCY FOR THEIR PART REPUBLICANS APPEAR TO BE BENEFITING MORE FROM DOUBTS ABOUT THE DEMOCRATS THAN FROM ANY PARTICULAR ACTIONS OF THEIR OWN IT'S NOT BECAUSE THEY'VE DONE SOMETHING SAY MESSRS HART AND TEETER IT'S BECAUSE THEY'RE NOT THE DEMOCRATS INDEED THERE ISN'T ANY ONE REPUBLICAN WHO HAS CLEARLY CHARGED TO THE FORE TO CAPTURE THE PUBLIC'S IMAGINATION SENATE MINORITY LEADER ROBERT DOLE OF KANSAS IS THE CANDIDATE THAT REPUBLICANS AND THOSE WHO LEAN TOWARD BEING REPUBLICANS WOULD MOST LIKE TO SEE NOMINATED IN 1996 THE SURVEY FINDS BUT WHEN ASKED TO THINK AHEAD TO A 1996 ELECTION PITTING PRESIDENT CLINTON AGAINST SEN DOLE AND INDEPENDENT ROSS PEROT THOSE SURVEYED PICK THE PRESIDENT 37 NAME MR CLINTON 32 NAME SEN DOLE AND 23 PICK MR PEROT IN A THEORETICAL MATCHUP BETWEEN MR CLINTON AND SEN DOLE ALONE THOSE SURVEYED SPLIT EVENLY WITH EACH MAN BEING NAMED BY 45 OF THE RESPONDENTS AT THIS POINT MR CLINTON COMFORTABLY BESTS REPUBLICANS JACK KEMP THE FORMER HOUSING SECRETARY AND DAN QUAYLE THE FORMER VICE PRESIDENT IN HEADTOHEAD MATCHUPS IN FACT THE ONLY THEORETICAL 1996 MATCHUP MR CLINTON LOSES IS WITH RETIRED GEN COLIN POWELL WHO'S PREFERRED BY A CLEAR 48 TO 38 MARGIN AMONG THOSE SURVEYED THE PROBLEM IS THAT GEN POWELL HASN'T DECLARED WHETHER HE'S A REPUBLICAN OR A DEMOCRAT STILL THE PUBLIC'S VIEW COULD CREATE PROBLEMS FOR MR CLINTON IN THE SHORT TERM A DIP IN THE PERCEPTION OF DEMOCRATS ISN'T A GOOD HARBINGER FOR IMPORTANT ELECTIONS NEXT WEEK TO CHOOSE GOVERNORS IN NEW JERSEY AND VIRGINIA AS WELL AS THE MAYOR OF NEW YORK PERHAPS MORE IMPORTANTLY THE IMAGES OF THE TWO PARTIES HAVE THE POTENTIAL TO INFLUENCE THE OUTCOME OF NEXT YEAR'S CONGRESSIONAL ELECTIONS WHEN THE MAKEUP OF THE HOUSE AND CONTROL OF THE SENATE WILL BE AT STAKE ASKED IN THE NEW SURVEY WHETHER THEY PLAN TO VOTE FOR A REPUBLICAN CANDIDATE OR DEMOCRATIC CANDIDATE IN NEXT YEAR'S ELECTION 34 OF THOSE SURVEYED SAY THEY INTEND TO VOTE FOR A REPUBLICAN COMPARED WITH 32 WHO SAY THEY INTEND TO VOTE DEMOCRATIC THAT'S A REVERSAL FROM LAST MONTH WHEN SLIGHTLY MORE INDICATED THEY WOULD VOTE DEMOCRATIC THAN REPUBLICAN 9310290070 931029 MCCAW CELLULAR COMMUNICATIONS THIRDPERIOD LOSS NARROWED ON 25 INCREASE IN REVENUE MCCAW CELLULAR COMMUNICATIONS INC SAID A 31 JUMP IN USERS OF ITS CELLULARPHONE NETWORK HELPED IT POST A SHARPLY NARROWED THIRDQUARTER NET LOSS OF 287 MILLION OR 14 CENTS A SHARE THAT COMPARES WITH A NET LOSS OF 58 MILLION OR 32 CENTS A SHARE A YEAR EARLIER THE KIRKLAND WASH CELLULAR PHONE COMPANY ALSO REPORTED THAT CASH FLOW ROSE BY 30 TO 2023 MILLION FROM 1554 MILLION FOR THE QUARTER REVENUE GREW 25 TO 5626 MILLION FROM 448 MILLION A YEAR EARLIER IN SEPTEMBER MCCAW AND PACTEL CORP A SUBSIDIARY OF PACIFIC TELESIS GROUP CLOSED A TRANSACTION COMBINING THEIR OPERATIONS IN SAN FRANCISCO SAN JOSE CALIF DALLAS AND KANSAS CITY MO AMERICAN TELEPHONE & TELEGRAPH CO IN AUGUST AGREED TO BUY MCCAW IN A STOCK SWAP VALUED AT 126 MILLION 9310290069 931029 SALOMON SEES PROFIT IN REASSEMBLING SPLITUP TREASURYS BY CONSTANCE MITCHELL FORD STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR YEARS WALL STREET INVESTMENT BANKERS MADE MONEY BY BREAKING UP TREASURY BONDS INTO BITS AND PIECES AND SELLING THEM AT A PROFIT NOW SALOMON BROTHERS INC WILL TRY TO MAKE A PROFIT BY PUTTING AS MUCH AS 10 BILLION OF THOSE PIECES BACK TOGETHER AGAIN IN A MOVE THAT IMPRESSED RIVALS AT OTHER FIRMS SALOMON ANNOUNCED A BOLD BID TO BUY BACK ITS HOMEMADE VERSION OF ZEROCOUPON TREASURY BONDS ITS SOCALLED CATS AND TRS WHICH IT SOLD TO THOUSANDS OF INDIVIDUAL INVESTORS DURING THE 1980S THE FIRM IS WILLING TO PAY TOP DOLLAR TO GET ITS HANDS ON THE SECURITIES SO IT CAN RECONSTITUTE THE PIECES INTO WHOLE TREASURY BONDS BY RESELLING THE TREASURY BONDS TO PROFESSIONAL TRADERS WHO BADLY NEED THEM SALOMON STANDS TO EARN TENS OF MILLIONS OF DOLLARS FOR ITSELF TRADERS SAY SOME OBSERVERS SAY THAT SALOMON'S COMPLEX BOND PLAY WHICH PARTLY INVOLVES ARBITRAGE TRADING IN THE BONDFUTURES MARKET RECALLS THE TYPE OF FREEWHEELING ACTIVITY THAT GAVE THE FIRM ITS REPUTATION IN THE 1980S AS ONE OF THE MOST AGGRESSIVE BOND HOUSES ON WALL STREET THE BID COMES AT A TIME WHEN THE FIRM'S IMAGE HAS BEEN TARNISHED BY A RECENT EXODUS OF KEY BOND TRADERS AND BY THE FALLOUT FROM A 1991 TREASURYAUCTION BIDDING SCANDAL JUST LAST WEEK SALOMON ANNOUNCED A LOSS OF 173 MILLION IN ITS PROPRIETARY TRADING OPERATIONS FOR THE THIRD QUARTER SOME ANALYSTS SAY THIS HIGHSTAKES MANEUVER IS A SIGN THAT SALOMON IS EAGER TO RECLAIM ITS PLACE AS ONE OF WALL STREET'S SAVVIEST BONDTRADING FIRMS IT'S THE OLD SALOMON BROTHERS SAID ROBERT KOPPRASCH A VICE PRESIDENT AT ALLIANCE CAPITAL MANAGEMENT CO IN NEW YORK THE TRANSACTION HE SAID SHOWS THEY STILL HAVE THE ABILITY TO DISCOVER CLEVER ARBITRAGE OPPORTUNITIES AND TO BE ABLE TO ACT ON THEM IN LARGE SIZE HE SAID IN RECONSTITUTING BILLIONS OF DOLLARS OF ZEROCOUPON BONDS WHICH DON'T PAY INTEREST AND ARE SOLD AT A DEEP DISCOUNT TO THEIR FACE VALUE SALOMON ESSENTIALLY IS SEEKING TO FILL A VOID IN THE BOND MARKET FOR MOST OF THIS YEAR PROFESSIONAL TRADERS HAVE COMPLAINED THAT THERE WEREN'T ENOUGH TREASURY SECURITIES AROUND TO COVER THEIR SHORT SALES POSITIONS IN THE BOND MARKET IN A SHORT SALE DEALERS AND PROFESSIONAL TRADERS SELL BORROWED SECURITIES AND LATER SEEK TO MAKE A PROFIT BY REPLACING THE BORROWED BONDS WITH SECURITIES PURCHASED AT A LOWER PRICE ESSENTIALLY SUCH TRADERS ARE BETTING THAT PRICES WILL FALL BUT THAT STRATEGY BACKFIRED WHEN BOND PRICES WENT STEADILY HIGHER FORCING TRADERS TO BUY MOREEXPENSIVE BONDS TO REPLACE BORROWED ONES THE PROBLEM WAS AGGRAVATED BY THE FACT THAT TRADERS HAD TROUBLE FINDING THE SECURITIES THEY NEEDED TO COVER SHORT POSITIONS A FEW BIG HOLDERS OF THE BONDS DECIDED NOT TO SELL WHICH FURTHER DROVE UP THE PRICE AND CREATED A CONDITION KNOWN AS A SHORT SQUEEZE THAT'S WHERE SALOMON BROTHERS COMES IN THE FIRM WHICH IS WELLKNOWN FOR HAVING CREATED MANY SHORT SQUEEZES OVER THE YEARS FIGURED IT COULD RELIEVE THE SHORTAGE OF BONDS IN THE MARKET BY GETTING ALL THOSE ZEROS OUT OF THE HANDS OF INDIVIDUALS AND BACK INTO THE MARKET IT ALSO REASONED THAT PROFESSIONAL TRADERS WOULD BE WILLTO PAY HIGH PRICES FOR THE BONDS BACK IN THE MID1980S SALOMON CREATED AND SOLD BILLIONS OF DOLLARS OF CATS SHORT FOR CERTIFICATES OF ACCRUAL ON TREASURY SECURITIES AND TRS WHICH ARE TREASURY RECEIPTS SALOMON CREATED THESE ZEROCOUPON BONDS BY STRIPPING THE INTERESTPAYING PART OF THE BOND FROM ITS CORPUS OR PRINCIPAL AND SELLING THE TWO PIECES SEPARATELY THOUGH IT'S DOUBTFUL INVESTORS WILL TENDER TO SALOMON THE FULL 10 BILLION IT IS ATTEMPTING TO BUY TRADERS SAY NEWS OF SALOMON'S BID IS AFFECTING BOND PRICES PRICES ALREADY HAVE CHEAPENED UP SAID ANGUS DUNCAN VICE PRESIDENT AND MANAGER OF FIXEDINCOME ARBITRAGE AT HONGKONG SHANGHAI BANK IN NEW YORK THIS CAUGHT SOME PEOPLE BY SURPRISE THE MARKET WAS RUNNING ON THE ASSUMPTION THAT THE SHORTAGE WOULD LAST UNTIL SEPTEMBER OF 1994 THE AVAILABILITY OF SUPPLY WILL BE INCREASED DRAMATICALLY BECAUSE THE CATS WILL BE PUT BACK TOGETHER ONE REASON CATS ARE IN SUCH DEMAND IS THAT THEY ARE AMONG THE SECURITIES PROFESSIONAL INVESTORS USE TO MEET THEIR OBLIGATIONS UNDER EXPIRING TREASURYBOND FUTURES CONTRACTS WITH THE TREASURY SCALING BACK NEW ISSUANCE OF LONGTERM BONDS THE SUPPLY OF ELIGIBLE SECURITIES HAS DECLINED THE BONDS SALOMON WANTS TO BUY FROM INVESTORS ARE CATS AND TRS WITH COUPONS OF 12 1/2 AND 13 1/4 WHICH MATURE AS FAR IN THE FUTURE AS 2014 IN EXCHANGE FOR THE SECURITIES SALOMON IS OFFERING TO EITHER PAY THE CURRENT CASH VALUE OF THE BONDS OR TO REPLACE THEM WITH ZEROCOUPON BONDS OF EQUAL VALUE THAT MATURE ON THE SAME DATES THERE IS A SITUATION IN THE MARKET WHERE THE WHOLE IS GREATER THAN THE INDIVIDUAL PARTS SO OUR PURPOSE IS TO GO OUT AND RECONSTITUTE THESE BONDS SAYS MARWAN MARSHI A VICE PRESIDENT AT SALOMON BROTHERS AND BECAUSE CATS ARE CONSIDERED AN ILLIQUID SECURITY MEANING THEY ARE DIFFICULT TO BUY AND SELL MR MARSHI THINKS MANY SMALL INVESTORS WILL JUMP AT THE OPPORTUNITY TO EXCHANGE THEIR CATS FOR NEWER ZEROCOUPON TREASURY BONDS THAT ARE EASIER TO BUY AND SELL WHAT'S MORE SALOMON CLAIMS THAT GIVEN CURRENT MARKET CONDITIONS AN OWNER OF CATS MATURING IN SAY 2003 WITH A FACE AMOUNT OF 1 MILLION WOULD RECEIVE 10000 MORE IN CASH OR EQUIVALENT BONDS UNDER ITS TENDER OFFER THAN FROM SELLING THOSE CATS IN THE OPEN MARKET SALOMON AND OTHER WALL STREET FIRMS STOPPED ISSUING THEIR BRANDS OF ZEROCOUPON TREASURY BONDS WHEN THE GOVERNMENT BEGAN ISSUING ITS OWN ZEROCOUPON BONDS IN THE MID1980S 9310290068 931029 WHO'S NEWS CLINTON TO NOMINATE BANKING LAWYER RICKI TIGERT TO HEAD FDIC AIDES SAY BY KENNETH H BACON AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON PLANS TO NOMINATE RICKI TIGERT A BANKING LAWYER TO HEAD THE FEDERAL DEPOSIT INSURANCE CORP ACCORDING TO ADMINISTRATION OFFICIALS MS TIGERT A PARTNER IN THE WASHINGTON OFFICE OF GIBSON DUNN & CRUTCHER IS A SPECIALIST IN INTERNATIONAL BANKING LAW SHE WORKED AT THE FEDERAL RESERVE BOARD AND THE TREASURY DEPARTMENT BEFORE GOING INTO PRIVATE LAW PRACTICE IF HER NOMINATION IS CLEARED BY THE SENATE MS TIGERT WILL TAKE OVER THE FDIC AT A TIME WHEN IT'S FACING TWO CHALLENGES FIRST UNDER THE CURRENT LAW THE AGENCY WHICH INSURES BANK DEPOSITS OF UP TO 100000 WHEN BANKS FAIL WILL HAVE TO ABSORB THE RESOLUTION TRUST CORP THE SAVINGSANDLOAN CLEANUP AGENCY THE EXACT TIMING OF THE MERGER WILL BE DETERMINED BY A BILL THAT'S BEFORE CONGRESS IN ADDITION THE CLINTON ADMINISTRATION IS STUDYING WAYS TO CONSOLIDATE THE FOUR FEDERAL BANKREGULATORY AGENCIES WHATEVER PLAN EMERGES IS LIKELY TO CHANGE THE FUNCTION OF THE FDIC ONE IDEA UNDER CONSIDERATION WOULD PROVIDE FOR A UNIFIED BANKEXAMINATION FORCE CURRENTLY THE FDIC THE OFFICE OF THE COMPTROLLER OF THE CURRENCY THE FEDERAL RESERVE AND THE OFFICE OF THRIFT SUPERVISION ALL HAVE THEIR OWN EXAMINATION FORCES THE FDIC HASN'T HAD A PERMANENT CHAIRMAN SINCE WILLIAM TAYLOR DIED IN AUGUST 1992 ANDREW HOVE THE POPULAR ACTING CHAIRMAN IS A REPUBLICAN WHO HOPES TO STAY ON THE FIVEMEMBER FDIC BOARD OF DIRECTORS THE ONLY MEMBER OF THE BOARD WHO HAS BEEN APPOINTED BY MR CLINTON IS EUGENE LUDWIG THE COMPTROLLER OF THE CURRENCY AN ACTIVIST MR LUDWIG HAS EMERGED AS THE GOVERNMENT'S MOST FREQUENT SPOKESMAN ON BANKING POLICY MS TIGERT WOULD FILL ONE OF THE TWO VACANT SEATS ON THE FDIC BOARD MS TIGERT WHO IS 48 YEARS OLD KNOWS PRESIDENT CLINTON PERSONALLY SHE HAS ATTENDED THE RENAISSANCE WEEKENDS A NEW YEAR'S GATHERING OF PROFESSIONALS THAT MR AND MRS CLINTON HAVE ATTENDED FOR YEARS IN HILTON HEAD SC SHE EMERGED AS A LEADING CANDIDATE LAST SPRING HER NOMINATION WILL BE ANNOUNCED WHEN HER SECURITY AND BACKGROUND CHECKS ARE COMPLETE MR CLINTON HASN'T SHOWN ANY URGENCY IN FILLING THE FDIC JOB ONE REASON IS THAT UNLIKE SEVERAL YEARS AGO THERE IS NO CRISIS IN THE BANKING INDUSTRY BANKS ARE EARNING RECORD PROFITS CAPITAL IS HIGH AND FEW BANKS ARE FAILING FROM THE ADMINISTRATION'S STANDPOINT THE MAIN PROBLEM IS THAT BANKS AREN'T LENDING ENOUGH SHORTLY AFTER HE TOOK OFFICE TWO ARKANSAS BANKERS EMERGED AS CANDIDATES ONE HAD STRONG BACKING FROM WORTHEN BANKING CORP WHICH EXTENDED A 35 MILLION LINE OF CREDIT TO MR CLINTON'S PRESIDENTIAL CAMPAIGN WORTHEN'S LARGEST SHAREHOLDER IS JACKSON STEPHENS THE POWERFUL LITTLE ROCK FINANCIER THE OTHER CANDIDATE WAS MR CLINTON'S CHIEF OF STAFF WHEN HE WAS GOVERNOR OF ARKANSAS FACED WITH A CHOICE OF DISPLEASING EITHER A FRIEND OR A FINANCIAL SUPPORTER MR CLINTON'S STAFF BEGAN LOOKING AT OTHER CANDIDATES 9310290067 931029 MOVIE VIDEOTAPES WILL SOON INCLUDE NEW WARNING LABELS ANY ALTERATIONS OR COLORIZATIONS WILL BE ADDRESSED IN CREDITS TO ALERT ATHOME VIEWERS BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSUMERS WHO SKIP THE COPYRIGHT WARNING ON VIDEOCASSETTES SOON MIGHT WANT TO FASTFORWARD A BIT FURTHER THE MOTION PICTURE ASSOCIATION OF AMERICA SAID ITS MEMBER STUDIOS AND SEVERAL OTHER FILM COMPANIES WILL BE ADDING WARNING LABELS TO FILMS MODIFIED FOR VIDEO OR TELEVISION THE WARNINGS WHICH WILL BE SHOWN DURING MOVIES' OPENING CEDITS AND ALSO WILL BE PRINTED ON VIDEOCASSETTE COVERS WILL INDICATE WHETHER FILMS WERE SHORTENED EDITED COLORIZED OR REFORMATTED FOR TELEVISION IT IS OUR INTENT TO CLEARLY AND CONCISELY INFORM CONSUMERS THROUGH THE USE OF LABELS OF ANY CHANGES THAT HAVE BEEN MADE TO THE ORIGINAL FILM SAID THE ASSOCIATION'S PRESIDENT JACK VALENTI THE MOTIONPICTURE INDUSTRY HOPES ITS ACTION WILL AVERT LEGISLATION THAT WOULD REQUIRE MORE DETAILED LABELS I HAVE LONG BELIEVED THAT THE INDUSTRY SHOULD DO FOR ITSELF WHAT OUGHT TO BE DONE MR VALENTI SAID THE GOVERNMENT OUGHT NOT BE INVOLVED IN OUR BUSINESS AT MOST THE LABELS WILL READ THIS FILM HAS BEEN MODIFIED FROM ITS ORIGINAL VERSION IT HAS BEEN FORMATTED TO FIT YOUR TV AND EDITED FOR CONTENT AND TO RUN IN THE TIME ALLOTTED THIS IS A COLORIZED VERSION OF THE ORIGINAL BLACKANDWHITE FILM SOME LAWMAKERS SAY THAT DOESN'T GO FAR ENOUGH REP BARNEY FRANK D MASS SAID HE'LL CONTINUE TO PUSH FOR LEGISLATION BECAUSE THE LABELS WERE DEVISED WITHOUT THE PARTICIPATION OF THE DIRECTORS OF FILMS DIRECTORS WRITERS AND CINEMATOGRAPHERS SAY THEY HAVE THE BIGGEST STAKE IN LABELING BECAUSE ARTISTIC QUALITIES INTENDED FOR THE BIG SCREEN ARE OFTEN LOST IN VIDEO OR TELEVISION ADAPTATION THEY WANT LABELS SPECIFYING EXACTLY HOW MUCH OF A MOVIE WAS CUT AND WHO OBJECTED TO THE CHANGES MADE THEY ALSO WANT LABELING THAT WOULD USE THE TERM PANNED AND SCANNED IF A FILM'S RECTANGULAR FORMAT WAS CHANGED TO FIT THE MORE SQUARE SHAPE OF A TV SCREEN ALMOST ALL MOVIES UNDERGO THIS PROCESS BEFORE BEING BROADCAST OR TRANSFERRED TO VIDEOTAPE THE DIRECTORS GUILD OF AMERICA WRITERS GUILD OF AMERICA WEST AMERICAN SOCIETY OF CINEMATOGRAPHERS AND INTERNATIONAL PHOTOGRAPHERS GUILD CONTEND THAT THE MPAA'S GENERAL DISCLAIMER IS INSUFFICIENT THE NEW MPAA LABELS FAIL TO PROVIDE ANY SPECIFIC INFORMATION ABOUT THE NATURE OF THE ALTERATIONS THEY SAID IN A JOINT STATEMENT OR WHETHER OR NOT THE ALTERATIONS WERE MADE WITH THE CONSENT OF THE FILM'S ARTISTIC AUTHORS VOLUNTARY LABELING SHOULD BEGIN WITHIN THE NEXT THREE TO SIX WEEKS AND WILL ONLY APPLY TO NEWLY MODIFIED FILMS THAT MEANS VIDEOCASSETTES ALREADY IN CIRCULATION WON'T BE RECALLED OR LABELED MPAA MEMBER STUDIOS INCLUDE BUENA VISTA PICTURES DISTRIBUTION INC METROGOLDWYNMAYER INC PARAMOUNT PICTURES CORP SONY PICTURES ENTERTAINMENT INC TWENTIETH CENTURY FOX FILM CORP UNIVERSAL CITY STUDIOS INC AND WARNER BROS INC PLEDGING TO JOIN THE LABELING EFFORT WERE NONMEMBERS MIRAMAX NEW LINE CINEMA CORP SAMUEL GOLDWYN CO AND TURNER BROADCASTING SYSTEM INC 9310290066 931029 MUTUAL FUNDS SALES OF BOND STOCK FUNDS FELL LAST MONTH BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL SALES OF STOCK AND BOND MUTUAL FUNDS SLOWED SHARPLY IN SEPTEMBER A TRADE GROUP SAID BUT INFLOWS ARE REBOUNDING THIS MONTH INVESTORS PUT 9 BILLION INTO STOCK FUNDS IN SEPTEMBER DOWN FROM THE RECORD 121 BILLION INFLOW IN AUGUST ACCORDING TO THE INVESTMENT COMPANY INSTITUTE STOCK FUNDS INVESTING OVERSEAS GOT 38 BILLION OR 42 OF SEPTEMBER'S STOCKFUN INFLOWS AND MUCH OF THAT MONEY WAS TRANSFERED FROM FUNDS INVESTING IN THE US BUT A HISTORICALLY HEFTY 52 BILLION STILL WENT INTO DOMESTIC STOCK FUNDS ENOUGH ACCORDING TO BYRON WIEN MORGAN STANLEY & CO US INVESTMENT STRATEGIST TO BE MARGINALLY FAVORABLE FOR THE US STOCK MARKET CASH HOLDINGS OF STOCK FUNDS EDGED DOWN TO 86 AT THE END OF SEPTEMBER FROM 88 IN AUGUST FUND GROUPS SAY INFLOWS ARE PICKING UP OCTOBER IS OUR HIGHEST MONTH OF NET SALES ON RECORD SAID NEAL LITVACK AN EXECUTIVE VICE PRESIDENT OF MARKETING AT BOSTON MUTUALFUND GIANT FIDELITY INVESTMENTS THIS MONTH SAW THE RETURN OF THE MORE AGGRESSIVE INVESTOR RECENT SALES OF INTERNATIONAL SMALLSTOCK AND SINGLEINDUSTRY SECTOR FUNDS ARE AT THEIR HIGHEST LEVELS OF THE YEAR MR LITVACK SAID INVESTORS ARE CHASING THE HOT PERFORMANCE OF FOREIGN MARKETS AT BOTH VANGUARD GROUP AND FRANKLIN RESOURCES INC OCTOBER'S BESTSELLING FUND INVESTED IN INTERNATIONAL STOCKS SCUDDER STEVENS & CLARK INC AND T ROWE PRICE ASSOCIATES INC SAY THEY ARE SEEING RECORD CASH INFLOWS OVERALL THANKS TO THEIR INTERNATIONAL FUNDS BONDFUND INFLOWS SANK TO 72 BILLION IN SEPTEMBER FROM 127 BILLION IN AUGUST THE INFLOW INTO LONGTERM MUNICIPALBOND FUNDS SLOWED TO 730 MILLION FROM 24 BILLION MOREOVER JUNKBOND FUNDS HAD A TEMPORARY OUTFLOW OF 1 BILLION COMPARED WITH AUGUST'S INFLOW OF ABOUT 370 MILLION THE CASH HAS BEEN RETURNING TO JUNKBOND FUNDS THIS MONTH OUTFLOWS FROM GINNIE MAE FUNDS ARE ACCELERATING SAYS AMG DATA SERVICES AN ARCATA CALIF FIRM THAT TRACKS WEEKLY FUND FLOWS THESE MUTUAL FUNDS INVEST IN MORTGAGEBACKED BONDS THEIR SHARE PRICES HAVE FALLEN IN RECENT WEEKS AS HOMEOWNERS REFINANCED MORTGAGES 9310290065 931029 AIG NET INCOME CUT BY CHARGE IN 3RD QUARTER INSURANCE FIRM'S PROFIT ROSE 33 DESPITE PROBLEMS AT THE DERIVATIVES UNIT BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN INTERNATIONAL GROUP CONTINUES TO FEEL THE STING OF ITS ONCEHOT DERIVATIVES OPERATION AIG SAID IT TOOK A PRETAX CHARGE OF 90 MILLION IN THE THIRDQUARTER FOR LOSSES AT THE UNIT THE SECOND CONSECUTIVE CHARGE TIED TO THE BUSINESS ONCE HEADED BY HOWARD SOSIN AN ABRASIVE MATH WIZARD WHO TOOK HIGH RISKS AS HEAD OF AIG'S DERIVATIVES GROUP MR SOSIN QUIT EARLIER THIS YEAR AFTER AIG TRIED TO PUT MORE CONTROLS ON HIS OPERATION THE WRITEDOWN MARRED AN OTHERWISE STRONG QUARTER FOR AIG ONE OF THE COUNTRY'S LARGEST INSURANCE COMPANIES THE COMPANY SAID OVERALL EARNINGS ROSE 33 IN THE PERIOD TO 451 MILLION UNDER MR SOSIN AIG FINANCIAL PRODUCTS WAS THE FASTESTGROWING BUSINESS AT AIG BUT SINCE MR SOSIN LEFT AIG HAS REPORTED THAT SOME OF THE VENTURE'S INVESTMENTS HAVE SOURED IN ADDITION OPERATING PROFIT FOR THE BUSINESS HAS FALLEN AIG ENTERED THE DERIVATIVES BUSINESS IN 1987 WHEN IT BROUGHT IN MR SOSIN FROM DREXEL BURNHAM LAMBERT AIG A COMPANY KNOWN FOR TAKING UNUSUAL RISKS SAW AN OPPORTUNITY TO EXPLOIT ITS ROCKSOLID CREDIT RATING TO MAKE BIG PROFITS IN THE FASTGROWING DERIVATIVES MARKET DERIVATIVES ARE FINANCIAL ARRANGEMENTS WHOSE RETURNS ARE TIED TO OR DERIVED FROM THE PERFORMANCE OF SUCH THINGS AS TREASURY BONDS CURRENCY VALUES OR STOCK PRICES AIG FINANCIAL PRODUCTS SPECIALIZES IN SWAPS WHERE AIG AND OTHER PARTIES AGREED TO TRADE THEIR OBLIGATIONS TO MAKE INTEREST PAYMENTS IN THE SECONDQUARTER AIG TOOK A 125 MILLION CHARGE STEMMING FROM WRITEDOWNS OF INVESTMENTS HELD BY THE OPERATION ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION ONE OF THE INVESTMENTS IS A NOTE AIG FINANCIAL PRODUCTS BOUGHT FROM TRIZEC A TROUBLED REALESTATE FIRM CONTROLLED BY CANADA'S BRONFMAN FAMILY THE LATEST CHARGE ALSO REFLECTS INVESTMENT LOSSES ALTHOUGH AIG LEFT UNSAID WHETHER THE 90 MILLION ITEM RELATES TO THE SAME INVESTMENTS INVOLVED IN THE SECONDQUARTER CHARGE THE PROBLEMS AT AIG FINANCIAL PRODUCTS COME WHEN THE UNIT IS TRYING TO REGROUP FOLLOWING THE DEPARTURE OF MR SOSIN IN A STATEMENT YESTERDAY AIG CHAIRMAN MAURICE GREENBERG SAID THE NEW MANAGEMENT TEAM INSTALLED TO SUCCEED MR SOSIN HAS STRENGTHENED THE COMPANY FOR THE LONG TERM HE ADDED THE BUSINESS IS GOING FORWARD STRONGLY BASED ON THE LATEST INFORMATION AVAILABLE WE BELIEVE NO FURTHER SIGNIFICANT CHARGES WILL BE NECESSARY IN FUTURE AIG IS NOW BATTLING MR SOSIN IN AN ARBITRATION ABOUT HOW MUCH IT WILL COST TO BUY HIM OUT MR SOSIN 42 YEARS OLD OWNED 20 OF AIG FINANCIAL PRODUCTS ANALYSTS SAY HIS SHARE COULD BE WORTH HUNDREDS OF MILLIONS OF DOLLARS ANALYSTS ARE CONFIDENT AIG'S GROWTH WILL BE UNAFFECTED BY THE SITUATION AT AIG FINANCIAL PRODUCTS I THINK AIG MOVES VERY QUICKLY TO CORRECT PROBLEMS SAID ALICE CORNISH AN ANALYST WITH NORTHINGTON PARTNERS I THINK THEY HAVE THE SITUATION UNDER CONTROL BUT ANALYSTS DON'T EXPECT AIG FINANCIAL PRODUCTS TO GROW AS STRONGLY AS IT DID UNDER MR SOSIN LAST YEAR PROFIT FOR THE UNIT SOARED TO 171 MILLION A 62 INCREASE I BELIEVE THAT THE STELLAR GROWTH WE SAW IN FINANCIAL PRODUCTS IN 1992 IS GOING TO BE TOUGH TO MATCH IN 1993 SAID STEVEN GAVIOS AN ANALYST WITH KIDDER PEABODY & CO THE THIRDQUARTER CHARGE RELATED TO AIG FINANCIAL PRODUCTS HOWEVER DID LITTLE TO HURT EARNINGS MOMENTUM FOR THE COMPANY AS A WHOLE AIG'S NET INCOME OF 4511 MILLION OR 142 A SHARE REPRESENTS AN IMPROVEMENT FROM 3389 MILLION OR 106 A SHARE THE YEAR BEFORE LAST YEAR'S EARNINGS INCLUDED 1533 MILLION IN LOSSES ON CATASTROPHES INCLUDING HURRICANE ANDREW EARNINGS WERE IN LINE WITH ANALYST EXPECTATIONS OPERATING EARNINGS WHICH EXCLUDED CATASTROPHES AND CAPITAL GAINS ROSE 14 REVENUE ROSE 10 TO 512 BILLION FROM 464 MILLION A YEAR EARLIER I THOUGHT IT WAS A VERY STRONG QUARTER SAID MS CORNISH AIG IS BENEFITING FROM THE START OF AN UPTURN IN THE CYCLE THAT HAS DRIVEN DOWN PROPERTY AND CASUALTY INSURANCE RATES FOR SIX YEARS A TURN IN THE CYCLE HELPS EXPLAIN WHY AIG'S PROPERTY AND CASUALTY INSURANCE PREMIUMS ROSE SHARPLY IN THE PERIOD AIG HAS SEEN INCREASED UNIT VOLUME AND INCREASED PRICING MR GAVIOS SAID AIG'S LIFEINSURANCE SEGMENT AND FEEBASED BUSINESS WHICH INCLUDES ITS RISKMANAGEMENT OPERATION ALSO SHOWED IMPROVEMENT IN THE QUARTER IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AIG ROSE 1125 TO 90 A SHARE 9310290064 931029 NEW FOCUS HIRING FISHER KODAK GAMBLES ON A FUTURE IN MULTIMEDIA WORLD A BUILDER NOT A BLOODLETTER HE CONJURES BOLD COURSE ON THE DIGITAL HIGHWAY' THE BOARD'S PRIORITIES SHIFT BY WALL STREET JOURNAL STAFF REPORTERS JOAN E RIGDON G CHRISTIAN HILL AND GAUTAM NAIK PICTURE THIS EASTMAN KODAK CO HAVING SHED TENS OF THOUSANDS OF JOBS SUDDENLY DEVELOPS SOME TECHNOLOGICAL SMARTS WITHOUT LOSING SIGHT OF ITS KEY FILM BUSINESS IT CHARGES INTO THE MULTIMEDIA REVOLUTION THIS TIME WITH PRODUCTS THAT WORK NOT ONES THAT USUALLY DON'T THIS MAY NEVER COME TO PASS BUT THE STRUGGLING PHOTOGRAPHY GIANT IS BETTING HEAVILY THAT GEORGE MC FISHER THE SOFTSPOKEN WIZARD WHO PUT MOTOROLA INC ATOP THE EVOLVING ELECTRONIC WORLD CAN TRANSFORM KODAK FROM A CUTTER OF EXPENSES TO A CONCERN ON TECHNOLOGY'S CUTTING EDGE IN AN INTERVIEW MR FISHER SAID HE HAD LAIN AWAKE TWO NIGHTS THINKING ABOUT TURNING KODAK INTO A LEADER IN THE ELECTRONIC AGE WITH PRODUCTS THAT NOT ONLY CAPTURE INFORMATION ON FILM BUT DIGITIZE IT AND COMMUNICATE IT INSTANTLY OVER THE AIRWAVES I TALKED WITH SOME PEOPLE IN THE SOFTWARE INDUSTRY THEY'RE SALIVATING AT THE POSSIBILITIES HE SAID NINETY PERCENT OF THESE IDEAS MAY NEVER WORK BUT 10 WILL BE KILLERS IN CHOOSING A BUILDER NOT A BLOODLETTER KODAK IS CLEARLY REVERSING AT SOME RISK THE BLUEPRINT FOR RECOVERY UNVEILED ONLY 12 WEEKS AGO WHEN ITS BOARD FIRED CHAIRMAN KAY R WHITMORE DIRECTORS COMPLAINING OF A CULTURE OF LIBERAL SPENDING THEN ASSURED ANALYSTS THAT HIS REPLACEMENT WOULD WIELD A SHARP AX COST CUTTING DOESN'T EXIST TODAY AND IT MUST START AT THE TOP DIRECTOR JOHN PHELAN SAID MR FISHER BY CONTRAST IS A PROFESSORIAL TYPE WITH NO EXPERIENCE IN OR APPETITE FOR MESSY CORPORATE RETRENCHMENT YET WHAT HE SEEMS TO HAVE IS AN ABILITY TO CONJURE UP A KIND OF KODACHROME IMAGE OF KODAK'S PLACE AND TREASURED BRAND NAME IN A FASTMOVING MULTIMEDIA REVOLUTION IN WHICH IMAGES AND INFORMATION MERGE IT WAS DURING THE BRIEF SECRET COURTSHIP BETWEEN KODAK AND MR FISHER THAT THE EXECUTIVE LAID OUT HIS KODAK VISION AND GRADUALLY WON OVER THE BOARD THERE WAS A MUTATION A GRADUAL SHIFT IN THINKING THAT OCCURRED ON THE BOARD SAYS ONE PERSON CLOSE TO THE SITUATION DIRECTORS LOOKED AT HIS BACKGROUND AND BEGAN TO BELIEVE HIS DREAM OF COMBINING KODAK'S IMAGE TECHNOLOGY WITH WIRELESS TECHNOLOGY THE STOCK MARKET SEEMS TO BE BUYING IT TOO YESTERDAY KODAK'S SHARES SURGED 4875 TO 63625 IN NEW YORK STOCK EXCHANGE TRADING STILL FOR TROUBLED KODAK WHOSE 1992 NET INCOME IS A MERE 11 CENTS A SHARE HIGHER THAN 10 YEARS AGO DESPITE FIVE RESTRUCTURINGS AND COUNTLESS PROMISES FOR A MORE FOCUSED FUTURE MR FISHER'S VISION IS A BIG GAMBLE THE COMPANY HAS FAILED MISERABLY AT SELLING ALL SORTS OF ELECTRONIC DOODADS SAYS STEVE HANNAFORD AN INDUSTRY ANALYST IN THE SHORT RUN AT LEAST IT MAKES MORE SENSE TO GET CHEAPER YELLOW INK TO PRINT THEIR FILM PACKAGES THAN CREATE THE NEXT GREAT HOME DIGITAL CAMERA SOME PEOPLE WHO GREW UP IN THE KODAK CULTURE SAY KODAK HAS THROWN TOO MUCH MONEY AND MANAGEMENT TOO HAPHAZARDLY AT HIGHTECH PRODUCTS AT THE EXPENSE OF ITS 5 BILLION FILM FRANCHISE LOTS OF US ARE EXCITED ABOUT ELECTRONICS THE QUESTION IS HOW DO YOU MAKE MONEY AT IT SAYS SCOTT BROWNSTEIN A FORMER KODAK EMPLOYEE WHO LED THE TEAM THAT INVENTED KODAK'S NEW PHOTO CD A WAY OF STORING PHOTOS ON COMPACT DISKS THAT THE TASK AT KODAK IS SO DAUNTING SEEMS TO HAVE PLAYED A LARGE ROLE IN MR FISHER'S STUNNING DECISION THIS WEEK TO BOLT FROM THE SECURITY OF HIGHFLYING MOTOROLA WHERE HE WAS THE WELLREGARDED CHAIRMAN AND CHIEF EXECUTIVE OFFICER HE COMPARES THE JUMP TO HIS DECISION TO LEAVE BELL LABORATORIES WHERE HE ONCE SERVED AS RESEARCH SCIENTIST IN 1976 AT THE TIME I SAW THAT AN INFORMATION REVOLUTION WAS TAKING PLACE AND I SAW THAT MOTOROLA WOULD ACCELERATE FASTER THAN BELL LABS I NOW SEE AN EXTENSION OF THAT THOUGH ASSOCIATES CAN NEVER RECALL MR FISHER FIRING ANYBODY ANALYSTS THINK HE IS GOING TO HAVE TO GET HARDEREDGED AT KODAK PARTICULARLY WITH THE AMPLE MANAGEMENT STAFF BUT FORMER COLLEAGUES AND FRIENDS SAY HE IS WILLING TO UNDERGO A PERSONALITY SHIFT FOR THREE REASONS A STOCKOPTION DEAL THAT COULD ENRICH HIM BEYOND THE DREAMS OF MOST CEOS KODAK'S MARKET DOMINANCE IN CONSUMER FILM WHICH EQUALS MOTOROLA'S IN CONSUMER WIRELESS DEVICES AND KODAK'S STAGGERING CASH FLOW WHICH SURPASSES MOTOROLA'S AND CAN BE REINVESTED BY MR FISHER IN SERVICES TO BE SOLD ON THE SOCALLED INFORMATION SUPERHIGHWAY OF THE FUTURE MATTHEW DISERIO A PAINEWEBBER ANALYST ESTIMATES THAT KODAK COULD GENERATE 1 BILLION OF CASH ANNUALLY AFTER TAXES INTEREST AND CAPITAL EXPENSE THAT MR FISHER COULD PUT INTO NEW TECHNOLOGIES AND PRODUCTS TO ACHIEVE THAT KODAK WILL HAVE TO COMPLETE ITS PLANS FOR SPINNING OFF ITS CHEMICALS BUSINESS WRING OUT SOME FAT AND REDUCE CAPITAL SPENDING TO THE LEVEL OF DEPRECIATION MR DISERIO SAID BASED ON HIS TRACK RECORD AT MOTOROLA MR FISHER COULD JUST BE SHREWD ENOUGH TO FERRET OUT THE CASH TO TRANSFORM KODAK INTO A HIGHGROWTH HIGHTECHNOLOGY COMPANY AT MOTOROLA HE HELPED CONSOLIDATE THE COMPANY'S IRON GRIP ON TWOWAY RADIOS PAGERS AND CELLULAR PHONES PARTLY BY INTENSE CONCENTRATION ON NEW MANUFACTURING METHODS AND PRODUCT DESIGNS AND PARTLY BY SUCCESSFULLY GUESSING WHICH TECHNOLOGIES TO BET ON KODAK STANDS IN GREAT NEED OF BOTH THOSE TALENTS MR FISHER CAN TAKE KODAK BEYOND FILM AND HEALTH CARE IF ANYBODY CAN MR DISERIO SAYS WHAT WILL HE SPEND KODAK'S MONEY ON MR FISHER'S BACKGROUND IS IN ELECTRONIC COMMUNICATIONS HE HAS A PHD IN APPLIED MATHEMATICS AND SPENT 10 YEARS AT BELL LABS THE TWO FASTESTGROWING LARGE MARKETS IN THE WORLD ARE WIRED ELECTRONIC NETWORKS AND WIRELESS ELECTRONIC NETWORKS COMPANIES CAN PARTICIPATE IN THOSE MARKETS IN THREE WAYS BY BUILDING THE NETWORKS BY PROVIDING THE DEVICES TO MANIPULATE INFORMATION OR BY PROVIDING THE CONTENT SENT OVER THE NETWORKS THE BETTING IS MR FISHER WILL PUSH KODAK TO ACCELERATE DEVELOPMENT OF MORE POWERFUL AND CHEAPER VERSIONS OF ELECTRONICIMAGING EQUIPMENT WHICH TAKES DIGITAL PICTURES OF DOCUMENTS RATHER THAN PROCESSING THEM AS TEXT AND OF MACHINES SUCH AS KODAK'S FLAGGING PHOTO CD DEVICE THAT MANIPULATE PHOTOGRAPHS IN DIGITAL FORM PROCESSING CONTENT FOR THE DIGITAL NETWORKS OF TOMORROW COULD BE THE LONGTERM BET MR FISHER MAKES FOR KODAK THE COMPANY ALREADY HAS A TEST PROJECT UNDER WAY IN TEXAS IN SENDING THINGS LIKE BRAIN SCANS DOWN THE DIGITAL PIPELINE WHAT INTERESTS HIM IS KODAK AS A CONTENT PROVIDER SAYS MR DISERIO ALLUDING TO MR FISHER'S REMARKS AT A NEWS CONFERENCE YESTERDAY CAPTURING IMAGES NOT JUST IMAGES OF PEOPLE BUT USING IMAGING TO STORE ALL DIFFERENT KINDS OF DATA AGREES DANIEL BURTON PRESIDENT OF THE COUNCIL ON COMPETITIVENESS A NONPROFIT BUSINESS COALITION OF WHICH MR FISHER IS CHAIRMAN KODAK IS GOING TO HAVE TO MARRY STILL IMAGES WITH THESE INFORMATION PIPELINES ITS SUCCESS AS A COMPANY WILL BE DETERMINED BY HOW WELL IT GETS ON TOP OF THE DIGITAL REVOLUTION AND TAILORS ITS PRODUCTS ACCORDINGLY STILL SUCH A STRATEGY ISN'T WITHOUT PERIL IN THE AREA OF TRANSMITTING COPYRIGHTED IMAGES FOR EXAMPLE KODAK ESSENTIALLY PUTS ITSELF IN COMPETITION WITH A KEY CUSTOMER BASE PROFESSIONAL PHOTOGRAPHERS THE LAST TIME KODAK DID THAT THE PURCHASE OF IMAGE BANK STOCK PHOTOGRAPHY HOUSE IN 1991 PROFESSIONAL PHOTOGRAPHERS THREATENED TO BOYCOTT KODAK FILM ALL OF THESE STRATEGIES ARE PREDICATED OF COURSE ON MR FISHER'S ABILITY TO MOVE DECISIVELY BUT SOME MOTOROLA MANAGERS AND ANALYSTS WORRY THAT THERE IS SO MUCH PRESSURE ON KODAK TO IMPROVE EARNINGS QUICKLY THAT HE MIGHT NOT BE ALLOWED TO OPERATE IN HIS OWN STYLE WE ARE A COMPANY THAT IS NOT IMPATIENT SAYS ONE MOTOROLA MANAGER WE MANAGE FOR THE LONG TERM THERE IS GREAT PRESSURE AT KODAK FOR A BETTER BOTTOM LINE IF HE IS GOING TO ACHIEVE ANY REAL CHANGE AT KODAK HE'S GOING TO HAVE TO MAKE LONGTERM INVESTMENTS THE EARLY SIGNAL FROM KODAK'S BOARD IS THAT IT CERTAINLY INTENDS TO GIVE MR FISHER ROOM TO PICK HIS OWN TEAM DIRECTORS SAID EARLY ON THAT WHOEVER THEY HIRED AS CEO WOULD BE FREE TO BRING IN AS MANY OF HIS OWN MANAGERS AS NECESSARY MR FISHER WAS EMPHATIC YESTERDAY THAT HE WOULD NOT RAID MOTOROLA FOR EXECUTIVES BUT CLEARLY HE WILL NEED SOME HELP AND HE ALREADY HAS SOME VACANCIES TO FILL KODAK HASN'T HAD A CHIEF FINANCIAL OFFICER SINCE COSTCUTTER CHRISTOPHER J STEFFEN QUIT ABRUPTLY IN APRIL AFTER JUST A FEW MONTHS ON THE JOB TWO OTHER TOP OFFICIALS WILLIAM F FOWBLE EXECUTIVE VICE PRESIDENT OF IMAGING AND PETER PALERMO A SENIOR MARKETING EXECUTIVE WILL RETIRE DEC 1 MR FISHER NEEDS TO HIRE SOME MARKETERS CLEARLY HE CAN'T DO IT ALL BY HIMSELF SAYS R JACKSON BLACKSTOCK AN ANALYST AT FIRST BOSTON CORP MR FISHER SAID YESTERDAY THAT HIS FIRST ORDER OF BUSINESS IS TO PUT KODAK'S FINANCIAL HOUSE IN ORDER HE VOWED TO SPEND A LOT OF THE NEXT FEW DAYS ON THAT MATTER INCLUDING TAKING A HARD LOOK AT KODAK'S DEBT BURDEN ALTHOUGH MR FISHER WAXED ELOQUENT ABOUT KODAK'S FUTURE IN A WIRELESS WORLD IT'S CLEAR THAT HE RECOGNIZES THE VALUE OF ITS CASHCOW PHOTOGRAPHICPRODUCTS BUSINESS WHICH POSTED HUGE 237 MARGINS IN THE THIRD QUARTER HE WASTED NO TIME LAUNCHING A BROADSIDE AT FUJI PHOTO FILM CO KODAK'S MAJOR JAPANESE COMPETITOR MR FISHER SAID HE WOULD TAKE THE FIGHT TO ASIA AND GO RIGHT AT THE JAPANESE TO SHOW CUSTOMERS IN JAPAN AND THE CUSTOMERS IN ASIA PACIFIC THAT KODAK IS BETTER THAN THE BEST KODAK IS BETTER THAN FUJI WE CAN SERVE THEM BETTER VISION ALONE WON'T WIN THAT BATTLE SINCE THE LATE 1980S KODAK'S SHARE IN CONSUMER FILM HAS ERODED FROM 80 TO AS LOW AS 60 ACCORDING TO SOME ESTIMATES CUSTOMERS ONCE FIERCELY LOYAL TO THE LITTLE YELLOW BOX NOW OFTEN TURN TO FUJI OR PRIVATELABEL FILM TO SAVE MONEY MR FISHER'S CHALLENGE IS TO GET THE COSTS OUT OF THE BUSINESS TO BETTER COMPETE FOR TODAY'S MORE FRUGAL CUSTOMER YESTERDAY MR FISHER SAID HIS MARKETING STRATEGY IS SIMPLY TO GIVE CUSTOMERS WHAT THEY WANT WHEN THEY WANT IT AT A VALUE THAT ALLOWS YOU TO MAKE SOME MONEY MR FISHER IN FACT IS NO STRANGER TO HEADTOHEAD COMPETITION WITH THE JAPANESE MOTOROLA WON TWO IMPORTANT DUMPING CASES AGAINST THE JAPANESE IN THE EARLY 1980S IN PAGERS AND CELLULAR PHONES KODAK HAS A BIG DUMPING CASE AGAINST FUJI ALLEGING IT IS SELLING PHOTOGRAPHIC PAPER IN THE US AT AS LITTLE AS ONEFOURTH THE PRICE IT CHARGES IN JAPAN KODAK IS ALSO PURSUING A PATENTINFRINGEMENT CASE AGAINST SONY CORP OVER A MAGNETICRECORDING SYSTEM MR FISHER IS ALMOST SURE TO BE AGGRESSIVE IN PUSHING THESE CASES THE REMAINING MYSTERY IS WHAT FINANCIAL INCENTIVE KODAK GAVE MR FISHER TO COME ABOARD HE WAS CLEARLY HEAVILY RECRUITED ENTICED IN PART BY A LONG COURTSHIP BY GERARD R ROCHE A HEADHUNTER AND CHAIRMAN OF HEIDRICK & STRUGGLES INC THOUGH MR ROCHE WON'T DISCUSS THE MATTER THOSE CLOSE TO THE SITUATION SAY THE KODAK JOB WAS EARLY ON SOMETHING OF A HARD SELL THE DEPARTING MOTOROLA CHIEF EVIDENTLY HAD NO INTENTIONS OF LEAVING THE CHICAGO AREA ANY TIME SOON ONLY EIGHT MONTHS AGO FRIENDS SAY HE BOUGHT A LARGE SUBURBAN HOUSE FOR AN ESTIMATED 25 MILLION KODAK WON'T DISCLOSE MR FISHER'S COMPENSATION PACKAGE BUT IT CLEARLY CONTAINS A LUCRATIVE STOCKOPTION DEAL MR FISHER SAYS MONEY WASN'T THE KEY TO HIS DECISION BUT HE IS NOT COMPLAINING ABOUT IT AT ALL ALTHOUGH THE BASIC SALARY OFFERED BY KODAK ISN'T MUCH DIFFERENT FROM HIS MOTOROLA SALARY HE ADDS IF KODAK DOES WELL I'M GOING TO DO EXTREMELY WELL BUT IF KODAK DOESN'T DO WELL I WOULD HAVE BEEN EQUALLY WELLOFF AT MOTOROLA LAST YEAR MR FISHER EARNED 15 MILLION IN SALARY AND BONUS AT MOTOROLA AND EXERCISED STOCK OPTIONS WITH A NET REALIZED VALUE OF 37 MILLION HE ALSO HAD UNEXERCISED OPTIONS WORTH 64 MILLION AT KODAK LAST YEAR MR WHITMORE EARNED 14 MILLION IN SALARY AND BONUSES BUT MOTOROLA EXECUTIVES SAY THEY WOULD BE DUMBFOUNDED IF MR FISHER SETTLED FOR THE KIND OF STOCK OPTIONS GIVEN LOUIS V GERSTNER JR BY INTERNATIONAL BUSINESS MACHINES CORP EARLIER THIS YEAR IBM GAVE MR GERSTNER OPTIONS TO BUY 500000 SHARES AT THE MARKET PRICE ON THE DATE OF THE GRANT PLUS A SALARY OF 2 MILLION AND A MINIMUM 1993 PERFORMANCE BONUS OF 11 MILLION MR FISHER DECLINED FEELERS FROM IBM'S HEADHUNTERS BEFORE MR GERSTNER FILLED THE POST MANY BELIEVE MR FISHER WAS WISE TO TURN DOWN IBM SAYS ANTHONY LANGHAM A FINANCIAL ANALYST AT NATWEST SECURITIES CORP WHO SPECIALIZES IN MOTOROLA HE'S NOT A TURNAROUND SPECIALIST BUT A GUY WHO CAN GO IN AND LOOK AT A COMPANY AND BE VERY CREATIVE ABOUT WHERE TO GO STRATEGICALLY THEN WORK PRAGMATICALLY TO ACHIEVE THAT IBM NEEDED A QUICK TURNAROUND THE SPECULATION IS THAT MR FISHER RECEIVED OPTIONS IN A RANGE BETWEEN MR GERSTNER AND MICHAEL D EISNER THE CHAIRMAN OF WALT DISNEY CO MR EISNER SIGNED A 10YEAR EMPLOYMENT AGREEMENT IN 1989 GIVING HIM OPTIONS ON EIGHT MILLION SHARES WHEN HE JOINED DISNEY IN 1984 HE RECEIVED OPTIONS TO BUY 510000 SHARES A NUMBER THAT EVENTUALLY INCREASED TO MORE THAN FIVE MILLION AS THE RESULT OF STOCK SPLITS LATE LAST YEAR MR EISNER EXERCISED ALL FIVE MILLION OPTIONS REMAINING UNDER THE 1984 AGREEMENT SELLING 3450000 SHARES FOR AN INDICATED PROFIT OF 1269 MILLION BEFORE PERSONAL TAXES COMMISSIONS AND LEGAL EXPENSE DISNEY HAS 560 MILLION SHARES OUTSTANDING KODAK 3267 MILLION GIVING AN EISNERIAN DEAL TO MR FISHER MIGHT SEEM OUTLANDISH FOR AN OLD ESTABLISHMENT COMPANY SUCH AS KODAK BUT CONSIDER THIS IN REACTION TO THE NEWS OF MR FISHER'S HIRING KODAK'S STOCK INCREASED IN VALUE BY 16 BILLION MR FISHER WHO WILL MOVE TO ROCHESTER DIDN'T RULE OUT THE POSSIBILITY OF SHIFTING KODAK'S CORPORATE HEADQUARTERS NOTING THAT MY WIFE DOESN'T LIKE TO MOVE A LOT HE ADDED THAT ONCE HE LEARNS THE BUSINESSES IF HE DISCOVERS THERE ARE BENEFITS TO MOVING HEADQUARTERS I MIGHT DO THAT JULIE AMPARANO LOPEZ CONTRIBUTED TO THIS ARTICLE 9310290063 931029 MARKETING & MEDIA BAYER'S MILES AGREES TO PLEAD GUILTY TO PRICE FIXING AND TO PAY 45 MILLION BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL STEEL WOOL PAD MAKER MILES INC AGREED TO PLEAD GUILTY TO ONE FELONY CHARGE OF PRICE FIXING AND TO PAY A 45 MILLION FINE FOR DISCUSSING PRICES AND DISCOUNT LEVELS WITH RIVAL PAD MAKER DIAL CORP THE US JUSTICE DEPARTMENT SAID DIAL WHICH MAKES BRILLO PADS WON'T BE PROSECUTED BECAUSE THE PROBE WAS TRIGGERED BY INFORMATION IT PROVIDED THE JUSTICE DEPARTMENT CHARGED MILES IN FEDERAL COURT IN CHICAGO FOLLOWING AN INVESTIGATION BY THE ANTITRUST DIVISION WITH THE ASSISTANCE OF THE US ATTORNEY'S OFFICE IN CHICAGO WHERE MILES'S HOUSEHOLD PRODUCTS UNIT IS BASED MILES MAKES SOS PADS MILES A UNIT OF GERMANY'S BAYER AG SAID IT IS PLEASED WITH THE AGREEMENT A SPOKESWOMAN FOR PITTSBURGHBASED MILES SAID IT'S A LOT OF MONEY BUT IT COULD HAVE BEEN A LOT WORSE SHE SAID MILES COULD HAVE BEEN FINED AS MUCH AS 10 MILLION IF IT HAD BEEN CONVICTED AND ADDED THIS IS A SUBSTANTIALLY REDUCED FINE BECAUSE WE COOPERATED ANNE K BINGAMAN ASSISTANT ATTORNEY GENERAL IN CHARGE OF THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION SAID THE CASE UNDERSCORES HER DETERMINATION TO FOCUS ON MATTERS THAT SIGNIFICANTLY AFFECT CONSUMERS SHE SAID THE FINE IMPOSED ON MILES SHOULD SERVE AS A MEANINGFUL DETERRENT TO FUTURE PRICE FIXING OF CONSUMER GOODS THE JUSTICE DEPARTMENT CHARGED MILES WITH DISCUSSING PRICES AND DISCOUNT LEVELS IN MEETINGS AND PHONE CONVERSATIONS IN 1992 WITH PHOENIXBASED DIAL MILES AND DIAL DOMINATE THE ESTIMATED 195 MILLIONAYEAR STEEL WOOL PAD INDUSTRY THE MILES SPOKESWOMAN EMPHASIZED THAT THE COMPANY HAD COOPERATED SINCE THE INVESTIGATION BEGAN LAST JUNE AND THAT IT HAD ACCEPTED THE RESPONSIBILITY OF THE ACTIONS OF OUR EMPLOYEES WHEN AN INTERNAL INVESTIGATION UNEARTHED THE DISCUSSIONS OF PRICE FIXING MILES SAID IT WAS ABOUT TO ALERT THE AUTHORITIES WHEN IT WAS CONTACTED BY THE JUSTICE DEPARTMENT IN JUNE MILES TERMINATED TWO SENIOR OFFICERS IN ITS HOUSEHOLD PRODUCTS UNIT STEPHEN M REIM A SENIOR VICE PRESIDENT OF MILES AND PRESIDENT OF THE UNIT WHO HAD BEEN EMPLOYED BY MILES FOR 27 YEARS AND CHARLES C CULSHAW DIRECTOR OF MARKETING MILES SAID AT THE TIME THAT THEY HAD VIOLATED COMPANY POLICIES PROHIBITING DISCUSSION OF CUSTOMER LISTS PRICES AND TERRITORIES WITH COMPETITORS EARLIER THIS MONTH MILES SAID IT WAS NEGOTIATING WITH THE JUSTICE DEPARTMENT FOR A SETTLEMENT POSSIBLY INVOLVING A FINE THE MILES SPOKESWOMAN HAD NO COMMENT ON DIAL'S ROLE DIAL SAID IT IS VERY PLEASED THAT THE JUSTICE DEPARTMENT HAS SEEN FIT NOT TO ACCUSE DIAL OF ANY UNLAWFUL CONDUCT THIS CONFIRMS OUR OWN INVESTIGATION WHICH FOUND NO WRONGDOING ON OUR PART HOWEVER THE JUSTICE DEPARTMENT SAID IN ITS NEWS RELEASE THAT IT DIDN'T PROSECUTE DIAL BECAUSE THE COMPANY PARTICIPATED IN THE ANTITRUST DIVISION'S CORPORATE AMNESTY PROGRAM WHICH GRANTS AMNESTY TO PERSONS WHO FIRST VOLUNTEER INFORMATION REGARDING THEIR INVOLVEMENT IN PRICE FIXING AND OTHER ANTITRUST VIOLATIONS MILES ACTUALLY IS GETTING OUT OF THE STEEL WOOL PAD BUSINESS EARLIER THIS MONTH IT ANNOUNCED IT WAS PUTTING ITS HOUSEHOLD PRODUCTS UNIT UP FOR SALE MILES SAID THE DECISION WAS UNRELATED TO THE PRICEFIXING MATTER 9310290062 931029 MORRISON KNUDSEN RAILROAD DEAL BOISE IDAHO MORRISON KNUDSEN CORP SAID IT RECEIVED A CONTRACT TO REBUILD 133 LOCOMOTIVES FOR SOUTHERN PACIFIC RAIL CORP THE REMANUFACTURING DEAL IS THE LARGEST IN MORRISON KNUDSEN'S HISTORY IT WILL RESULT IN REVENUE TO MORRISION KNUDSEN OF MORE THAN 100 MILLION THIS YEAR AND NEXT YEAR THE COMPANY SAID THE AGREEMENT INCLUDES AN OPTION FOR THE COMPANY TO REBUILD 60 ADDITIONAL LOCOMOTIVES FOR SOUTHERN PACIFIC BASED IN SAN FRANCISCO IN 1995 9310290061 931029 SHAWMUT ENDS REGULATORY PACTS HARTFORD CONN SHAWMUT NATIONAL CORP SAID THE OFFICE OF THE COMPTROLLER OF THE CURRENCY AND THE FEDERAL RESERVE BANK OF BOSTON LIFTED REGULATORY AGREEMENTS UNDER WHICH THE CORPORATION AND ITS SUBSIDIARY BANKS HAVE BEEN OPERATING THE OCC AGREEMENT WAS ENTERED INTO IN 1990 AGREEMENTS WITH THE BOSTON FED WERE SIGNED IN 1990 AND 1991 EACH FOCUSED ON THE NEED TO IMPROVE ASSET QUALITY AND CREDIT ADMINISTRATION POLICIES WHICH THE BANK SAID HAVE NOW BEEN ADDRESSED SHAWMUT WHICH HAS ASSETS OF 27 BILLION HAS SHOWN STRONG IMPROVEMENT IN RESULTS IN RECENT QUARTERS 9310290060 931029 SYNERGEN INC'S LOSS WIDENED IN 3RD PERIOD AS REVENUE PLUNGED BOULDER COLO SYNERGEN INC HAMMERED BY HIGH RESEARCH COSTS AND DELAYS IN THE RELEASE OF ITS FLAGSHIP DRUG REPORTED A WORSETHANEXPECTED THIRDQUARTER LOSS AND PLUNGING REVENUE THE BIOTECHNOLOGY CONCERN REPORTED A LOSS OF 182 MILLION OR 72 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 22 MILLION OR NINE CENTS A SHARE REVENUE TUMBLED 71 TO 47 MILLION FROM 165 MILLION WALL STREET WHICH ONCE TOUTED SYNERGEN AS A BIOTECHNOLOGY STAR WAS EXPECTING A THIRDQUARTER LOSS OF 66 CENTS ACCORDING TO A MEAN ESTIMATE OF 10 ANALYSTS WHO FOLLOW THE COMPANY DESPITE THE EARNINGS DISAPPOINTMENT SYNERGEN SHARES ROSE 75 CENTS TO CLOSE AT 1475 IN NATIONAL OVERTHECOUNTER TRADING SYNERGEN STUMBLED EARLIER THIS YEAR AFTER A MAJOR TRIAL OF ITS FLAGSHIP SEPTICSHOCK DRUG ANTRIL WAS DISAPPOINTING THAT PROMPTED THE RESIGNATION OF THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE JON S SAXE AND DELAYED ANTRIL'S US INTRODUCTION UNTIL 1996 AT BEST SYNERGEN SAID ITS RESEARCH AND DEVELOPMENT EXPENSES ROSE 27 IN THE THIRD QUARTER TO 194 MILLION THE COMPANY ENDED THE QUARTER WITH A CASH BALANCE OF ABOUT 175 MILLION CAROL WERTHER A BIOTECHNOLOGY ANALYST AT COWEN & CO SAID SYNERGEN STILL HAS ENOUGH CASH TO LAST AT LEAST THROUGH THE PLANNED 1995 RELEASE OF ANTRIL IN EUROPE IN ADDITION SHE SAID SYNERGEN IS IN THE MIDST OF A HOTLY CONTESTED RACE WITH REGENERON PHARMACEUTICALS FOR A TREATMENT FOR LOU GEHRIG'S DISEASE IT'S TOO EARLY TO WRITE THEM OFF SHE SAID THERE IS STILL SOME UPSIDE HERE 9310290059 931029 SOUTH KOREA SHOWS SIGNALS OF RECOVERY IN SEPTEMBER OUTPUT SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA SOUTH KOREA'S MAJOR ECONOMIC INDICATORS IN SEPTEMBER SHOWED SIGNS OF RECOVERY IN THE NATION'S ECONOMY BUT ANALYSTS AND GOVERNMENT OFFICIALS CAUTIONED THAT IT IS PREMATURE TO EXPECT A FULLSCALE RECOVERY ACCORDING TO A REPORT FROM THE NATIONAL STATISTICAL OFFICE ON ECONOMIC ACTIVITIES SOUTH KOREA'S INDUSTRIAL OUTPUT WHICH ROSE 35 IN AUGUST SURGED 10 IN SEPTEMBER THE HIGHEST GROWTH SINCE JUNE LAST YEAR WHEN IT POSTED A 12 RISE THE OFFICE ATTRIBUTED THE SHARP RISE IN INDUSTRIAL OUTPUT TO FEWER NATIONAL HOLIDAYS AND RAINY DAYS IN THE MONTH THERE WERE JUST TWO CHUSUK HOLIDAYS COMPARED WITH THREE DAYS A YEAR AGO SAID THE OFFICIAL SEPTEMBER SAW ABOUT SEVEN RAINY DAYS COMPARED WITH ABOUT 20 RAINY DAYS IN THE YEAREARLIER PERIOD BUT IT IS STILL TOO EARLY TO EXPECT A FULL RECOVERY SAID CHO HUIGAP A DIRECTOR AT THE OFFICE THE SEPTEMBER INDUSTRIAL ACTIVITY HOWEVER IS ENCOURAGING MANUFACTURING FACTORIES WERE OPERATED AT 78 IN SEPTEMBER UP 46 FROM A YEAR AGO AND UP 3 FROM AUGUST THANKS TO THE ACTIVE PRODUCTION OF AUTOMOBILES COMPUTERS AND CONSTRUCTION MATERIALS SAID THE OFFICE MACHINERY ORDERS IN THE PRIVATE SECTOR WHICH IS USED AS A LEADING INDICATOR IN INVESTMENT ACTIVITIES ROSE A WHOPPING 49 FROM A YEAR AGO MACHINERY ORDERS COMPRISING BOTH PUBLIC AND PRIVATE SECTORS CONTRACTED 16 IN SEPTEMBER COMPARED WITH THE YEAREARLIER PERIOD A RESULT OF A CONTRACT LAST YEAR FOR 600 BILLION WON 7413 MILLION FROM KOREA ELECTRIC POWER CORP FOR THE CONSTRUCTION OF A POWER STATION OFFICE CONSTRUCTION PERMITS A LEADING INDICATOR OF CONSTRUCTION ACTIVITIES SURGED 49 IN SEPTEMBER PERMITS FOR HOUSING SOARED 72 COMMERCIAL USE GREW 97 AND INDUSTRIAL PURPOSE ROSE 31 ACCORDING TO THE OFFICE 9310290058 931029 TRAVEL BUG BITES NEWLY AFFLUENT ASIANS TRINKETS TALES FROM AFAR BECOME STATUS SYMBOLS BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK THE SEVENDAY GETAWAY WAS CALLED CALIFORNIA FANTASY AND IT SOLD LIKE A DREAM A PROMOTIONAL FLIER ISSUED JOINTLY BY A THAI TRAVEL AGENCY AND A CREDITCARD COMPANY INVITED A GROUP OF BANGKOK CARDHOLDERS TO VISIT A LOCAL HOTEL ONE SUNDAY LAST YEAR TO SIGN UP FOR A TOUR FEATURING DISNEYLAND SEA WORLD AND OTHER CALIFORNIA ATTRACTIONS FOR THE EQUIVALENT OF 1200 TO 1500 PER PERSON WITHIN THREE HOURS ALL 2000 PACKAGES WERE SOLD THAT BLOWOUT WAS ONE OF THE EARLY SIGNS OF A BOOM IN INTERNATIONAL TRAVEL BY THAIS BUT THE THAIS AREN'T TRAVELING SOLO FROM SINGAPORE TO SEOUL ASIANS ARE VENTURING ACROSS BORDERS IN EVERGREATER NUMBERS WHY NOW ECONOMIC GROWTH IS ENRICHING THE MIDDLE CLASSES WHILE SATELLITE TELEVISION STIRS THEIR CURIOSITY ABOUT FARAWAY PLACES MEANWHILE SOME COUNTRIES ARE EASING EXIT PERMITS AND CURRENCY RESTRICTIONS AND THROUGHOUT THE REGION TRAVEL IS A BADGE OF STATUS THAT MORE PEOPLE WANT TO FLASH EXPERTS ARE CONFIDENT THAT AS LONG AS ECONOMIES IN THE REGION REMAIN HEALTHY THE TRAVEL BUG WILL INFECT MORE ASIANS RISING ASIAN INCOMES ARE PRODUCING A SWELLING NUMBER OF PEOPLE WHO CAN SUDDENLY AFFORD TO TRAVEL SAYS MICHAEL TAYLOR AN ECONOMIST AT MORGAN STANLEY ASIA LTD IN HONG KONG WHO THINKS THE NUMBERS WILL CONTINUE TO GROW EXPONENTIALLY THE NEW ASIAN TRAVELERS ARE HELPING TO COMPENSATE FOR A DECLINE IN TOURISM FROM JAPAN AND WESTERN COUNTRIES SUFFERING FROM RECESSION OR SLOWDOWNS THE TRAVEL INDUSTRY IS COUNTING HEAVILY ON THESE NEW TRAVELERS TO KEEP HOTELS RESTAURANTS AND AIRPORTS BUSTLING IN THE YEARS AHEAD NOWHERE IN SOUTHEAST ASIA HAS THE SURGE IN TRAVEL OVER THE PAST YEAR BEEN MORE PRONOUNCED THAN IN THAILAND IN 1992 13 MILLION THAIS WENT OVERSEAS UP 26 FROM THE PREVIOUS YEAR IN THIS YEAR'S FIRST HALF THE FIGURE GREW TO 770000 UP 25 FROM A YEAR EARLIER STAPORN SIRISINHA MANAGING DIRECTOR OF SIAM EXPRESS CO THE BANGKOK TRAVEL COMPANY THAT LAUNCHED THE CALIFORNIA PROMOTION WITH AMERICAN EXPRESS CO'S THAI UNIT SAYS THE SECRET WAS IN TAILORING THE PACKAGE FOR THE RIGHT POTENTIAL CUSTOMERS THE TWO FIRMS SENT INVITATIONS TO UPPERMIDDLECLASS THAIS AND MADE THE TOUR PAYABLE IN UP TO SIX INSTALLMENTS IT WAS A READYMADE MARKET HE SAYS BUT NOBODY HAD PROPERLY TAPPED IT IN TAIWAN AND SOUTH KOREA THE EASING OF TRAVEL RESTRICTIONS HAS HELPED FUEL THE TRAVEL BOOM TRAVEL FROM TAIWAN HAS ROCKETED YEAR AFTER YEAR SINCE RESIDENTS WERE GIVEN THE GREEN LIGHT TO VISIT CHINA VIA A THIRD COUNTRY IN LATE 1987 IN 1989 SOUTH KOREANS WERE GIVEN THE RIGHT TO TRAVEL ABROAD INDIVIDUALLY RATHER THAN ON ORGANIZED TOURS FOR MANY TRAVELERS DECIDING TO MAKE THE FIRST FAMILY TRIP ABROAD ISN'T EASY BUT ONCE THAT PSYCHOLOGICAL BARRIER IS BROKEN THE URGE TO TRAVEL OFTEN INTENSIFIES HALF A YEAR LATER MS TAIRIN SIGNED UP FOR A THREEDAY GROUP TRIP TO HONG KONG WHICH SHE DECIDED WAS AFFORDABLE AT 300 FOR AIR FARE MEALS AND ACCOMMODATION EARLY THIS YEAR SHE RETURNED TO JAPAN SHE HOPES THE FAMILY'S NEXT DESTINATION WILL BE OUTSIDE ASIA FREQUENTLY THE FIRST OVERSEAS TRIP TAKES A FAMILY TO A SHOPPING MECCA SUCH AS HONG KONG OR SINGAPORE AS THEY GET BRAVER THEY VENTURE TO THE US AND AUSTRALIA THEN EUROPE SAYS JIMMY CHANG PRESIDENT OF PHOENIX TOURS INTERNATIONAL IN TAIPEI STATUS IS A BIG INCENTIVE MANAT CHANPEN GENERAL MANAGER OF MD TRAVEL A LARGE BANGKOK TRAVEL AGENCY OBSERVES IF THEIR NEIGHBORS HAVE BEEN SOMEWHERE THEY HAVE TO GO TOO PITI SUKAKUL OWNER OF PRESIDENT TOUR CO ANOTHER BANGKOK AGENCY SAYS MANY OF THE NEW GLOBETROTTERS WANT TO COME BACK WITH PEARL NECKLACES TO SHOW THEIR FRIENDS AT PARTIES WHILE LUXURY BOUTIQUES BENEFIT FIVESTAR HOTELS GENERALLY DON'T JAMES REED TRAVEL EAST LTD'S MANAGING DIRECTOR FOR THAILAND PUTS IT THIS WAY AN ASIAN WILL SPEND 10000 ON A GOLD ROLEX WATCH BUT WON'T SPEND 100 ON A HOTEL ROOM THAT WON'T BE RECOGNIZED BY FELLOW NATIONALS EUROPEAN AMERICAN AND MORE RECENTLY JAPANESE TRAVELERS OFTEN AIM TO FLEE CROWDS NOISE AND POLLUTION ASIA'S NEW TRAVELERS BY CONTRAST GENERALLY WANT TO COLLECT FAMOUS CITIES SITTING ON A BEACH FOR FOUR DAYS IS OUT OF THE QUESTION SAYS MR REED IF THEY CAN AFFORD EUROPE HE SAYS THEY TEND TO HOPSCOTCH ACROSS THE CONTINENT IT'S ONE DAY PARIS ONE DAY LONDON ONE DAY VIENNA YOU WANT TO SEE EVERYTHING AND COME BACK AND TELL YOUR FRIENDS THEY DON'T GO TO THE RIVIERA THEY DON'T GO TO MAJORCA LIKE THE JAPANESE WHEN THEY STARTED TRAVELING IN HERDS SOME 20 YEARS AGO ASIA'S NEW TRAVELERS USUALLY PREFER TO LOAD ONTO BUSES AND FOLLOW A FLAGWAVING GUIDE RATHER THAN GO IT ALONE MAJOR TOUR OPERATORS SAY THEIR BUSINESS SWELLED BY AROUND 20 LAST YEAR AND MOST FORESEE SIMILAR GROWTH THIS YEAR MORE OF THE TOUR GROUPS ARE FROM CHINA MAINLY MIDDLEAGED MEN AND WOMEN RIDING HONG KONG'S STAR FERRY OR GAPING AT BANGKOK'S ROYAL PALACE I SEE A SIMILAR PATTERN TO WHAT HAPPENED IN EUROPE 30 YEARS AGO SAYS BERT VAN WALBEEK EXECUTIVE VICE PRESIDENT OF SIAM EXPRESS CO IN BANGKOK IF SOMEONE IN SPAIN HAD SAID IN 1960 THAT A CLEANING LADY IN SWEDEN WOULD HOLIDAY IN MAJORCA EVERYBODY WOULD LAUGH NOW EVERYBODY IS LAUGHING WHEN WE TALK ABOUT THE CHINESE CLERK IT HAS THE SAME IF NOT GREATER POTENTIAL LAST YEAR 131000 MAINLAND CHINESE VISITED THAILAND UP 65 FROM 1991 IN THIS YEAR'S FIRST HALF ALONE 151000 MAINLANDERS MADE THE TRIP THAT'S MORE THAN THREE TIMES AS MANY AS IN THE YEAREARLIER HALF OVERSEAS CHINESE IN SOUTHEAST ASIA WHOSE RELATIVE WEALTH AND WEALTH OF RELATIVES ABROAD HAVE LONG KEPT THEM IN TOUCH WITH THE OUTSIDE WORLD ARE GLOBETROTTING EVEN MORE THESE DAYS THEY'RE TAKING MONEY THEY MADE ON THE STOCK MARKET AND TRAVELING FOR PLEASURE SAYS MR PITI OF PRESIDENT TOUR IN BANGK AMONG THE OVERSEAS CHINESE AND OTHER SEASONED TRAVELERS ASIAN WEEKEND TRIPS ARE BECOMING INCREASINGLY POPULAR THANKS IN PART TO AN ABUNDANCE OF NEW RESORTS INCLUDING SOME IN SUCH PREVIOUSLY UNDEVELOPED PLACES AS THE PHILIPPINE ISLAND OF PALAWAN AND THE PHRA NANG HEADLAND IN THAILAND'S SOUTHERN KRABI PROVINCE ALL THIS BODES WELL FOR THE REGION'S TRAVEL AND TOURISM INDUSTRY ABOUT 120 MILLION PEOPLE OR 65 OF EAST ASIA'S POPULATION WORK IN TOURISMRELATED FIELDS ACCORDING TO THE WORLD TOURISM ORGANIZATION THAT NUMBER IS EXPECTED TO GROW THE INDUSTRY INCREASINGLY WILL CATER TO ASIAN TRAVELERS SINGAPORE WHICH LAUNCHED A PLAN EARLIER THIS YEAR SPECIFICALLY TO ATTRACT ASIANS ESTIMATES THAT 13 BILLION POTENTIAL VISITORS LIVE WITHIN A FIVEHOUR FLIGHT OF THE ISLAND STATE SO PROMISING IS THE REGION'S WEALTH THAT THE SINGAPORE TOURIST PROMOTION BOARD AIMS TO INCREASE THE COUNTRY'S ANNUAL TOURISM RECEIPTS TO S114 BILLION US72 BILLION IN 1995 FROM LAST YEAR'S S85 BILLION HONG KONG AGREES THAT THE POTENTIAL IS ENORMOUS EUGENE SULLIVAN EXECUTIVE DIRECTOR OF THE HONG KONG TOURIST ASSOCIATION SAYS ASIA IS DISPLACING AMERICA EUROPE AND JAPAN AS THE MAIN SOURCE OF TRAVELERS YOU COULD SAY THAT WHAT WE LOST ON THE SWINGS BECAUSE OF RECESSION IN SOME MAJOR MARKETS WE HAVE MORE THAN MADE UP FOR ON OUR ASIAN ROUNDABOUTS 9310290057 931029 INTERNATIONAL MEXICO IN DEAL WITH MICROSOFT SHOWS A COMMITMENT TO INTELLECTUAL PROPERTY BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY MICROSOFT CORP ANNOUNCED A SIZABLE SOFTWARE SALE TO THE MEXICAN GOVERNMENT A DEAL THAT SHOWS MEXICO'S INCREASING COMMITMENT TO THE PROTECTION OF INTELLECTUAL PROPERTY IN THE PAST PEOPLE IN MEXICO LIKE THOSE IN MANY DEVELOPING COUNTRIES TENDED TO VIEW SOFTWARE AS SOMETHING TO BE PASSED AROUND AMONG FRIENDS HARDWARE WAS SEEN AS HAVING VALUE THAT SHOULD BE PAID FOR BUT SOFTWARE WASN'T DESPITE ALL THE INTELLECTUAL EFFORT THAT GOES INTO PRODUCING IT AS A RESULT MICROSOFT SAYS THAT SOFTWARE COMPANIES ONLY MANAGE TO SELL 1/20TH AS MUCH SOFTWARE FOR EACH PERSONAL COMPUTER IN MEXICO AS THEY DO IN THE US MICROSOFT AND THE MEXICAN GOVERNMENT SAY THAT THEY HOPE THE MULTIMILLIONDOLLAR DEAL WITH THE MEXICAN COMMERCE DEPARTMENT WILL PERSUADE OTHER DEPARTMENTS OF THE FEDERAL GOVERNMENT THAT THEY SHOULD PAY FOR THE SOFTWARE THEY USE THE HOPE IS THAT THE LESSON WILL THEN SPREAD FROM THERE TO STATE AND LOCAL GOVERNMENTS AND PRIVATE BUSINESS WE WANT TO SET AN EXAMPLE SAYS ANTONIO ARGUELLES UNDERSECRETARY FOR ADMINISTRATION IN THE MEXICAN COMMERCE DEPARTMENT WHICH IS PURCHASING THE SOFTWARE FOR AN UNDISCLOSED AMOUNT THE FOCUS ON THE VALUE OF INTELLECTUAL PROPERTY COMES AT A GOOD TIME FOR US COMPUTER COMPANIES BECAUSE THEY DOMINATE THE MARKET HERE FOR ALL TYPES OF COMPUTERS AND BECAUSE THE MARKET IS GROWING FAST ALTHOUGH MEXICO IS ROUGHLY THE 15THBIGGEST ECONOMY IN THE WORLD IT HAS BECOME THE SIXTH OR SEVENTHBIGGEST MARKET FOR PCS AHEAD OF SUCH COUNTRIES AS CANADA AND AUSTRALIA STEVE TIRADO GENERAL MANAGER OF SUN MICROSYSTEMS INC'S MEXICAN SUBSIDIARY SAID THE ATTENTION THE GOVERNMENT IS PAYING TO INTELLECTUAL PROPERTY SETS A TONE THAT WILL HAVE A VERY IMPORTANT IMPACT ON THE ATTITUDES AND BEHAVIOR OF A LOT OF INDUSTRY ENCOURAGING THEM TO SPEND MORE ON INFORMATION TECHNOLOGY BILL GATES CHAIRMAN OF MICROSOFT SAYS HE WORRIES THOUGH ABOUT WHETHER THERE MIGHT BE A BACKLASH IF THE NORTH AMERICAN FREE TRADE AGREEMENT ISN'T APPROVED BY THE US CONGRESS I WOULDN'T BE TOO OPTIMISTIC ABOUT SELLING MORE SOFTWARE IF NAFTA DOESN'T PASS HE SAYS HE ADDS THAT IT'S NEVER BEEN ENTIRELY CLEAR HOW SOFTWARE IS TREATED UNDER MEXICAN COPYRIGHT LAW AND THAT EVEN WITH A SORT OF SIGNIFICANT GESTURE LIKE THE COMMERCE DEPARTMENT'S SOFTWARE PURCHASE WITHOUT NAFTA THE LAWS DON'T CHANGE MR GATES HAS RECENTLY BECAME AN OUTSPOKEN PROPONENT OF NAFTA AT LEAST FOR COMPANIES BASED ON INTELLECTUAL PROPERTY THIS IS A FANTASTIC THING HE SAYS HE ALSO NOTES THAT WHILE MICROSOFT HAS ABOUT 70 PEOPLE IN ITS FASTGROWING MEXICAN UNIT IT HAS AT LEAST 60 JOBS IT CAN POINT TO IN ITS US OPERATIONS THAT WERE GENERATED TO SUPPORT THE COMPANY'S ACTIVITIES IN MEXICO THAT DOESN'T COUNT THE JOBS AT OUTSIDE CONTRACTORS IN THE US THAT REPRODUCE THE SOFTWARE PRINT THE MANUALS AND SUPPLY OTHER SERVICES WE'RE NOT TALKING GENERAL MOTORSSCALE HERE SAYS PHIL WELT GENERAL MANAGER OF MICROSOFT'S MEXICAN OPERATIONS BUT THESE ARE REAL JOBS THAT WOULDN'T EXIST IN THE US IF NOT FOR WHAT WAS HAPPENING IN MEXICO 9310290056 931029 IN WAKE OF SUPERCOLLIDER BIG SCIENCE PONDERS GLOBAL PROJECTS FOR ITS SURVIVAL BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FIGHTING FOR ITS SURVIVAL BIG SCIENCE IN THE US APPEARS DESTINED TO GO GLOBAL BUT DON'T EXPECT A NEW WORLD ORDER IN SCIENCE TO BE ALL PEACE AND HARMONY HIGHENERGY PHYSICISTS ARE ALREADY DISCUSSING WHAT COMES NEXT AFTER CONGRESS KILLED THE UNFINISHED 11 BILLION SUPERCOLLIDER IN TEXAS THE PROJECT WAS PLAGUED BY COST OVERRUNS AND MISMANAGEMENT AND NOW LEAVES BEHIND 1 BILLION IN SHUTDOWN COSTS AND A 10MILELONG HOLE THE MOST LIKELY BACKUP PLAN IS TO THROW IN WITH THE EUROPEANS ON A SMALLER SUPERCOLLIDER THAT WOULD SMASH PROTONS IN SWITZERLAND FOR A FRACTION OF THE PRICE WHAT WE HOPE WILL COME OUT OF THE SUPERCONDUCTING SUPERCOLLIDER IS THERE WILL NOW BE MUCH MORE ATTENTION GIVEN TO THE INTERNATIONALIZATION OF HIGHENERGY PHYSICS AS WELL AS OTHER MEGABUCK SCIENTIFIC PROJECTS SAYS JACK GIBBONS PRESIDENT CLINTON'S SCIENCE ADVISER WITH ECONOMIES SLUMPING IN THE INDUSTRIALIZED WORLD GOVERNMENTS ARE FINDING IT HARDER TO MOUNT HUGE MULTIYEAR SCIENCE PROJECTS THAT THE PRIVATE SECTOR CAN'T AFFORD BUT WHILE SHARING COSTS WITH FOREIGN PARTNERS HAS ITS ATTRACTIONS SUCH CLOSE COMPANY CAN ALSO BREED DISCORD CANADA EUROPE AND JAPAN WERE MIFFED THIS YEAR WHEN THE US THEIR PARTNER IN A MULTIBILLIONDOLLAR INTERNATIONAL SPACE STATION CUT THEM OUT OF PRELIMINARY SESSIONS WHERE PLANS WERE DRAWN TO REDESIGN THE SPACECRAFT AND POSSIBLY BRING IN A NEW PARTNER THE RUSSIANS LAST YEAR THERE WAS AN INTERNATIONAL UPROAR AMONG SCIENTISTS WORKING ON A GLOBAL PROJECT TO MAP ALL 100000 OR SO GENES IN THE HUMAN BODY AFTER THE US NATIONAL INSTITUTES OF HEALTH TRIED TO PATENT THOUSANDS OF HUMAN GENE FRAGMENTS A LESSERKNOWN BIG SCIENCE PROJECT TO DESIGN AND POSSIBLY BUILD THE WORLD'S FIRST FUSION REACTOR TO GENERATE POWER COULD BE THE TEST MODEL FOR THE SUCCESS OF INTERNATIONAL PROJECTS TO COME BUT FRANKLY SO FAR IT ISN'T MUCH CAUSE FOR REASSURANCE SAYS PHYSICIST ROBERT PARK SPOKESMAN FOR THE AMERICAN PHYSICAL SOCIETY REFERRING TO THE PRACTICAL DIFFICULTIES OF ORCHESTRATING THE PROJECT PUTTING ASIDE QUESTIONS ABOUT THE SCIENTIFIC FEASIBILITY OF PRODUCING ENERGY BY FUSING DIFFERENT ATOMS WHICH STILL ISN'T PROVEN THE PARTNERS EUROPE JAPAN RUSSIA AND THE US COULDN'T AGREE ON A SINGLE SITE FOR THE DESIGN CENTER SO THEY DECIDED TO HAVE THREE IN SAN DIEGO JAPAN AND GERMANY EVEN BIGGER COMPETITION WILL SURROUND WHO GETS THE 5 BILLIONPLUS FACILITY IF IT IS BUILT EXPOSING THE DIFFICULTIES IN SHARING BENEFITS EQUALLY AMONG INTERNATIONAL PARTNERS STILL ONE OF THE BLOWS THAT KILLED THE TEXAS ATOMSMASHER WAS THE FAILURE TO ATTRACT INTERNATIONAL PARTNERS TO THE WORLD'S LARGEST SCIENCE EXPERIMENT THE PROBLEM WAS THE US DIDN'T APPROACH FOREIGN PARTNERS SUCH AS THE JAPANESE UNTIL MIDWAY THROUGH THE PROJECT WHEN THE COLLIDER'S MISSION HAD LONG BEEN SET AND CONGRESS WAS ALREADY SQUIRMING ABOUT COST OVERRUNS REP GEORGE BROWN D CALIF CHAIRMAN OF THE HOUSE SCIENCE COMMITTEE SAYS MULTIBILLIONDOLLAR SCIENCE PROJECTS THAT TAKE A DECADE OR MORE TO DESIGN AND BUILD ARE IN TROUBLE UNLESS A SYSTEM IS ESTABLISHED TO INITIATE AND SHARE BIG SCIENCE PROJECTS INTERNATIONALLY IN THE WAKE OF THE DEATH OF THE TEXAS SUPERCOLLIDER MR BROWN SAYS HE SEES MERIT IN JOINING WITH THE EUROPEANS TO HELP THEM BUILD WHAT BY DEFAULT WOULD BE THE WORLD'S PREMIER HIGHENERGY PHYSICS LAB BUT ONLY IF IT SERVES AS AN INCENTIVE FOR ESTABLISHING A FRAMEWORK TO HANDLE INTERNATIONAL SCIENCE IN THE FUTURE THE EUROPEANS HAVEN'T YET ASKED THE US TO JOIN THEIR SUPERCOLLIDER PROJECT WHICH IS LESS EXPENSIVE BECAUSE IT UPGRADES AN EXISTING FACILITY BUT THEY ARE KNOWN TO BE FACING FINANCIAL TROUBLES STILL IF BIG SCIENCE IS ON THE RUN IN THE US IT IS FAR FROM DEAD THE NEARLY 30 BILLION SPACE STATION SURVIVES THOUGH IT IS UNDER INCREASING PRESSURE IN CONGRESS AND WILL FACE OPPOSITION FROM DEFICITCUTTING LAWMAKERS AGAIN NEXT YEAR MOREOVER THE CLINTON ADMINISTRATION AND CONGRESS THIS YEAR ALLOTTED 17 MILLION FOR WHAT COULD GROW INTO THE NEXT BIG SCIENCE PROJECT A 27 BILLION ADVANCED NEUTRON SOURCE THAT WOULD TOP THE CURRENT LEADING FACILITY IN FRANCE EVEN LESSEXPENSIVE PROJECTS ARE UNDER PRESSURE REPS TIMOTHY PENNY D MINN AND JOHN KASICH R OHIO THIS WEEK RELEASED A LIST OF NEW SPENDING CUT PROPOSALS THAT TARGETS SCIENCE IN ADDITION CONGRESS WHACKED AT THE NATIONAL SPACE AGENCY'S BUDGET KILLING A 37 BILLION NEW ROCKET FOR THE SPACE SHUTTLE STOPPING THE US SEARCH FOR RADIO SIGNALS FROM EXTRATERRESTRIALS AND ORDERING A HIGHPRIORITY ORBITING XRAY TELESCOPE TO TRIM ITS MISSION AND HITCH A RIDE ON A JAPANESE SATELLITE INSTEAD AT THE SAME TIME HOWEVER CONGRESS VOTED TO LAUNCH TWO NEW PLANETARY PROBES ONE TO MARS AND ONE TO STUDY ASTEROIDS BOTH HOWEVER FIT THE NEW BUDGETARY CLIMATE THEY PROMISE TO COST NO MORE THAN 150 MILLION APIECE 9310290055 931029 GM PLANS OVERTIME AT 16 ASSEMBLY PLANTS DETROIT GENERAL MOTORS CORP SAID BEGINNING MONDAY IT WILL LAUNCH ITS MOST AGGRESSIVE WEEKLY OVERTIME SCHEDULE SINCE 1994 MODEL YEAR PRODUCTION BEGAN GM SAID IT PLANS OVERTIME NEXT WEEK AT 16 OF ITS NORTH AMERICAN CAR AND TRUCK ASSEMBLY PLANTS THOSE PLANTS ARE SCHEDULED TO WORK A COMBINED TOTAL OF 236 HOURS OF OVERTIME CHRYSLER CORP SAID IT PLANS OVERTIME TOMORROW AND NEXT WEEK AT SIX OF ITS US AND CANADIAN ASSEMBLY PLANTS FORD MOTOR CO SAYS IT IS PLANNING TO WORK OVERTIME AT 14 ASSEMBLY PLANTS ALTOGETHER THE 10 DOMESTIC AUTO MAKERS PLAN TO BUILD 237294 CARS AND TRUCKS THIS WEEK UP 142 FROM THE 207833 VEHICLES BUILT A YEAR AGO 9310290054 931029 RICHTON INTERNATIONAL CORP MADISON NJ RICHTON INTERNATIONAL CORP SAID IT COMPLETED THE ACQUISITION OF CENTURY SUPPLY CORP FOR A TOTAL OF 83 MILLION INCLUDING FUTURE PAYMENTS AND 150000 RICHTON SHARES RICHTON SAID 21 MILLION OF THE PAYMENT WILL BE MADE OVER EIGHT YEARS TO CENTURY'S OWNER ERNEST HODAS WHO WILL REMAIN A CONSULTANT TO CENTURY 9310290053 931029 WHO'S NEWS SIERRA PACIFIC RESOURCES CO SIERRA PACIFIC RESOURCES CO RENO NEV WALTER M HIGGINS III 49 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS UTILITY HOLDING COMPANY THE POST OF PRESIDENT WAS PREVIOUSLY HELD BY AUSTIN W STEDHAM 64 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE THE POST OF CHIEF OPERATING OFFICER WAS VACANT MR HIGGINS WAS PREVIOUSLY PRESIDENT AND CHIEF OPERATING OFFICER OF LOUISVILLE GAS & ELECTRIC CO THE MAIN UNIT OF LG&E ENERGY CORP A UTILITY HOLDING COMPANY BASED IN LOUISVILLE KY 9310290052 931029 WHO'S NEWS DRAVO CORP DRAVO CORP PITTSBURGH ARTHUR E BYRNES 48 YEARS OLD CHAIRMAN OF DELTEC ASSET MANAGEMENT CORP WAS NAMED A DIRECTOR OF THIS PRODUCER OF CONSTRUCTION AGGREGATES AND LIME HIS ELECTION EXPANDS THE BOARD TO 11 MEMBERS 9310290051 931029 TECHNOLOGY IBM BELLSOUTH TEAM UP TO SELL SIMON' BY DENNIS KNEALE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IBM IS TAKING ITS FIRST STEP INTO THE NASCENT AND TRICKY MARKET FOR PERSONAL DIGITAL ASSISTANTS TARGETING THE MUCHDERIDED APPLE NEWTON AND RIVALS WITH A NEW PRODUCT IT WILL SUPPLY TO A POTENT PARTNER BELLSOUTH CORP THE REGIONAL BELL COMPANY'S FARFLUNG CELLULAR BUSINESS WILL SELL THE NEW DEVICE IBM HAS DESIGNED A SLENDER 8INCHLONG POCKETPHONECUMCOMPUTER THAT BARELY WEIGHS A POUND IT WILL MARK THE FIRST TIME THAT BIG BLUE AND A BABY BELL HAVE TEAMED UP IN SUCH A LICENSING AGREEMENT BELLSOUTH AND INTERNATIONAL BUSINESS MACHINES CORP ARE SET TO ANNOUNCE THE PACT NEXT WEEK ACCORDING TO PEOPLE FAMILIAR WITH THE PLANS BELLSOUTH WILL START SELLING SIMON AS THE PRODUCT WILL BE KNOWN IN DECEMBER IT MAY INTENSIFY THE DEBATE OVER SOCALLED PDAS AND WHAT FEATURES THE NEWFANGLED DEVICES SHOULD OFFER THE NEWTON AND ITS ILK HAVE BEEN DESIGNED AS SLIMMEDDOWN HIGHPOWER COMPUTERS WITH LIMITED COMMUNICATIONS CAPABILITIES AND THE PROMISE OF MORE LATER ON SIMON TURNS NEWTON ON ITS HEAD IT IS FIRST AND FOREMOST A SOUPEDUP CELLULAR PHONE EQUIPPED WITH EXTRA COMPUTING POWER SO FAR THE FIRST WAVE OF PDAS HAS BEEN MALIGNED FOR GIMMICKY FEATURES AND FOR LACKING THE WIRELESS COMMUNICATIONS THAT ARE CRITICAL TO THE WHOLE EFFORT COMPANIES LIKE APPLE COMPUTER INC COMPAQ COMPUTER CORP AND MOTOROLA INC ARE BELIEVED TO BE RACING TO DEVELOP PDAS LASHED TO THE CELLULARPHONE APPROACH IBM'S NEW ENTRY WILL OFFER A DRY RUN BEFORE THE COMPANY INTRODUCES A MORE POWERFUL VERSION UNDER ITS OWN BRAND NAME IN MID1994 IBM WILL GET A SMALL CUT OF THE MONTHLY INCOME THAT BELLSOUTH TAKES IN FROM PEOPLE USING SIMON ON CELLULAR AND PAGING NETWORKS GIVING IBM A DETAILED LOOK AT WHAT CUSTOMERS DO WITH THE DEVICE ULTIMATELY THE PDA HOLDS OUT THE PROMISE OF ANYWHERE ANYTIME ACCESS TO THE STAFF ONLINE DATA AND COMPUTERS BACK AT THE OFFICE EXPERTS HAVE A FAVORITE EXAMPLE AS YOU WAIT AT THE AIRPORT YOUR POCKET GIZMO EMITS AN ELECTRONIC CHIRP YOU ANSWER AND AN ASSISTANT SAYS YOUR FLIGHT IS CANCELED YOU PUNCH A FEW BUTTONS ON THE TOUCH SCREEN SCROLL THROUGH OTHER FLIGHTS PRESS A KEY TO RESERVE TICKETS AND CHARGE THEM AND ZAP AN ELECTRONICMAIL MESSAGE ABOUT THE DELAY TO THE PERSON YOU ARE MEETING THE DEVICE UPDATES THE CHANGE IN YOUR CALENDAR BACK AT THE OFFICE AS YOU CHECK VOICE MAIL CALL UP MORNING STOCK QUOTES AND WHAT THE HECK RIP OUT THE HEART OF A BAD GUY IN THE VIDEO GAME MORTAL KOMBAT WHILE WAITING FOR THE NEXT TAKEOFF MOST OF THESE FEATURES ARE IMMINENT AND VIRTUALLY ALL OF THEM CAN ADVANCE TO THE PROTOTYPE PHASE OR BEYOND WITHIN JUST TWO YEARS WHETHER CONSUMERS WILL FOLLOW IS ANOTHER MATTER THE CELLULAR NETWORKS THAT ARE BEGINNING TO CARRY DATA CAN BE UNRELIABLE ESPECIALLY IF THE SENDER IS ON THE MOVE THE MONTHLY FEES CAN RUN HIGH AND NO MANUFACTURER HAS OVERCOME THE BARRIER OF PRICE THESE HOPPEDUP FILOFAXES OFTEN SELL FOR 1000 OR MORE WHILE MANY CONSUMERS BALK BEYOND THE 350 MARK NOR WILL THE BELLSOUTH MODEL POSE A PRICE BREAKTHROUGH SIMON WILL SELL FOR 1000 ALBEIT PRICES FOR APPLE'S NEWTON AND TANDY CORP'S ZOOMER GO THAT HIGH WITHOUT A CELLULAR PHONE AMERICAN TELEPHONE & TELEGRAPH CO'S EO DOES INCLUDE CELLULAR CALLING AND WIRELESS FEATURES BUT IT COSTS UP TO 3000 WEIGHS 23 POUNDS AND RIVALS A CLIPBOARD IN SIZE 108 INCHES LONG BY 71 INCHES WIDE AT&T EXECUTIVES SAY EO ISN'T A PDA SIMON WILL BOAST WIRELESS SKILLS ITS RIVALS MOSTLY LACK NOW UPON DELIVERY IT WILL LET A CUSTOMER MAKE PHONE CALLS AND SEND AND RECEIVE EMAIL OVER BELLSOUTH'S CELLULAR NETWORK THE DEVICE WAS DESIGNED BY AN IBM PERSONAL COMPUTER CO TEAM AT A LAB IN BOCA RATON FLA IN BELLSOUTH'S SERVICE REGION IT WILL BE MANUFACTURED FOR IBM BY MITSUBISHI CONSUMER ELECTRONICS OF AMERICA'S PLANT IN BRASELTON GA ACCORDING TO INSIDERS SIMON CAN SEND AND RECEIVE FAXES WITHOUT HAVING TO BE HARDWIRED TO A PHONE LINE WITH AN EXTRA SIGNAL CARD SIMON CAN TAKE IN ONEWAY PAGING HANDLED BY BELLSOUTH'S MOBILECOMM PAGING SYSTEM THE JUICEDUP PHONE WHICH USES FLAT TOUCHSCREEN KEYS FOR DIALING RATHER THAN THE POPUP BUTTONS OF A REGULAR PHONE ALSO HAS FEATURES SEEN AS DE RIGEUR FOR A DIGITAL ASSISTANT IT HAS A CALENDAR AND SCHEDULING ITS ADDRESS BOOK IS TIED INTO THE PHONECALLING SO THAT BY POINTING TO A NAME THE GADGET DIALS THE NUMBER ON ITS OWN APPLE GALVANIZED THE MARKET IN AUGUST WHEN IT UNVEILED NEWTON AS THE DEFINING TECHNOLOGY OF THE DIGITAL AGE BUT IT DIDN'T HAVE ANY WIRELESS FEATURES READY EMAIL CAPABILITY IS PROMISED BEFORE YEAR END NEWTON CAN'T YET HANDLE PHONE CALLS OR WIRELESS FAXING LINKED TO A PHONE LINE FOR FAXING IT CAN ONLY SEND WIRELESS MESSAGING ARRIVED THIS MONTH AT AN EXTRA COST OF 229 FOR THE NECESSARY PART PLUS MONTHLY FEES BUT NEWTON CAN ONLY RECEIVE NOT SEND NEWTON WAS STRONGLY CRITICIZED AND UNFAIRLY FANS SAY FOR GLITCHES IN TURNING HANDWRITING INTO TYPED TEXT BELLSOUTH AND IBM SAW THE HANDWRITING ON THE WALL SIMON ISN'T SMART ENOUGH TO TRANSLATE HANDSCRAWLED BLURBS INTO TEXT INSTEAD IT MERELY REPLICATES THE APPEARANCE OF THE SCRIBBLING TECHIES CALL THAT APPROACH ELECTRONIC INK ALBERT CHU A STRATEGY DIRECTOR AT APPLE SAYS NEWTON'S LIMITED COMMUNICATIONS AREN'T ITS FAULT IT'S AN INFRASTRUCTURE ISSUE HE SAYS FOR EXAMPLE PAGING NETWORKS LIKE BELLSOUTH'S MOBILECOMM WHICH BEGAN ZAPPING NEWTON MESSAGES THIS MONTH ARE ONEWAY ONLY AS COMPUTERS GET TINIER YET MORE POWERFUL MAKERS NOW REALIZE THERE'S ANOTHER CABLE WE FORGOT TO CUT THE COMMUNICATIONS CABLE WIRELESS COMMUNICATIONS IS A MAJOR PART OF HOW WE MOVE FORWARD SAYS JAMES D BARTLETT WHO OVERSEES THE IBM'S THINKPAD LINE OF NOTEBOOK COMPUTERS WIRELESS DATA NETWORKS SUCH AS ARDIS AND RAM LET FIELD FORCES BEAM BRIEF MESSAGES TO HEADQUARTERS AND BACK LATE NEXT YEAR CELLULAR PROVIDERS SUCH AS MCCAW CELLULAR COMMUNICATIONS INC WILL BE EQUIPPED TO CARRY FAR BIGGER BURSTS OF DATA AT SPEEDS FOUR TIMES AS HIGH THAT APPROACH WOULD VASTLY REDUCE THE COST OF SENDING PDA DATA AND ELECTRONIC MAIL ACROSS THE CELLULARPHONE NETWORK SAYS FERNAND SARRAT AN IBM EXECUTIVE WHO IS STUDYING WIRELESS SERVICES SOME CUSTOMERS HOWEVER SEEM RELUCTANT WALT MCGRAW WORKS AT A TV PRODUCTION COMPANY IN NEW YORK AND JUST BOUGHT A NEWTON HOPING TO GET WIRELESS EMAIL ON THE ROAD HE ISN'T SO SURE HE WANTS NEWTON TO ALSO BE A CELLULAR PHONE I DON'T WANT TO BE THAT IN TOUCH HE SAYS IF A CELLULAR PHONE RINGS YOU'RE SORT OF OBLIGATED TO PICK IT UP 9310290050 931029 MARKETING & MEDIA DOW JONES AMERICAN CITY TO LAUNCH NEW MAGAZINE CHARLOTTE NC AMERICAN CITY BUSINESS JOURNALS INC AND DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL SAID THEY WILL LAUNCH A MONTHLY MAGAZINE TARGETED TO THE HEADS OF THE NATION'S FASTESTGROWING SMALL BUSINESSES THE MAGAZINE TITLED BIZ WILL BE INTRODUCED IN EARLY 1994 BY A NEW COMPANY OWNED EQUALLY BY AMERICAN CITY AND DOW JONES THE CONTROLLEDCIRCULATION PUBLICATION WILL BE SENT FREE TO 500000 CHIEF EXECUTIVES OR BUSINESS OWNERS WHOSE COMPANIES HAVE HAD REVENUE GROWTH OF AT LEAST 15 A YEAR OVER THE PAST FIVE YEARS THE NEW MAGAZINE WILL DRAW HEAVILY ON THE EDITORIAL RESOURCES OF AMERICAN CITY WHOSE 27 NEWSPAPERS HAVE 295 REPORTERS AND EDITORS A TEST MARKETING OF BIZ IN FOUR CITIES OVER THE PAST YEAR RECEIVED A HIGHLY POSITIVE REACTION SAID RAY SHAW CHAIRMAN OF AMERICAN CITY MR SHAW RETIRED IN 1989 AS PRESIDENT AND CHIEF OPERATING OFFICER OF DOW JONES IN ADDITION TO THE WALL STREET JOURNAL DOW JONES PUBLISHES BARRON'S MAGAZINE AND OTHER PERIODICALS ELECTRONIC BUSINESSINFORMATION SERVICES INCLUDING DOW JONES TELERATE AND COMMUNITY NEWSPAPERS 9310290049 931029 TECHNOLOGY CASES OF MEASLES DECLINED TO RECORD LOW IN 1ST HALF ATLANTA YES WE HAVE NO MEASLES WELL ALMOST NONE HEALTH OFFICIALS ACROSS THE US REPORTED A TOTAL OF 175 CASES OF THE HIGHLY CONTAGIOUS DISEASE IN THE FIRST SIX MONTHS OF 1993 ACCORDING TO THE CENTERS FOR DISEASE CONTROL AND PREVENTION THAT'S THE LOWEST FIGURE SINCE STATISTICS ON MEASLES WERE FIRST RECORDED IN 1943 AND A 99 DECREASE FROM 13800 CASES REPORTED IN THE FIRST HALF OF 1990 WE'VE NEVER SEEN SO FEW CASES SAID WILLIAM L ATKINSON MEDICAL EPIDEMIOLOGIST AT THE CDC THE SIGNIFICANCE LIES IN THE POTENTIAL CONSEQUENCES OF CONTRACTING MEASLES WHICH IS OFTEN MISTAKENLY DISMISSED AS SIMPLY A CHILDHOOD RITE OF PASSAGE SAID DR ATKINSON WHILE MOST PATIENTS DEVELOP THE FAMILIAR SKIN SPOTS AND FEVER ONE IN FIVE DEVELOPS COMPLICATIONS INCLUDING DEHYDRATION OR PNEUMONIA MEASLES CAN EVEN BE FATAL FROM 1989 THROUGH 1991 OVER 50000 CASES WERE REPORTED OF THOSE 132 ENDED IN DEATH CDC OFFICIALS ATTRIBUTE THE DECLINE TO INCREASED VACCINATION LEVELS AMONG PRESCHOOLERS THOSE LEVELS JUMPED TO 83 IN 1991 FROM 61 IN 1985 9310290048 931029 POLITICS & POLICY HOW POLL WAS CONDUCTED THE WALL STREET JOURNAL/NBC NEWS POLL WAS BASED ON NATIONWIDE TELEPHONE INTERVIEWS OF 1508 ADULTS CONDUCTED LAST FRIDAY THROUGH TUESDAY BY THE POLLING ORGANIZATIONS OF PETER HART AND ROBERT TEETER THE SAMPLE WAS DRAWN FROM 315 RANDOMLY SELECTED GEOGRAPHIC POINTS IN THE CONTINENTAL US EACH REGION WAS REPRESENTED IN PROPORTION TO ITS POPULATION HOUSEHOLDS WERE SELECTED BY A METHOD THAT GAVE ALL TELEPHONE NUMBERS LISTED AND UNLISTED AN EQUAL CHANCE OF BEING INCLUDED ONE ADULT 18 YEARS OR OLDER WAS SELECTED FROM EACH HOUSEHOLD BY A PROCEDURE TO PROVIDE THE CORRECT NUMBER OF MALE AND FEMALE RESPONDENTS CHANCES ARE 19 OF 20 THAT IF ALL ADULTS WITH TELEPHONES IN THE US HAD BEEN SURVEYED THE FINDINGS WOULD DIFFER FROM THESE POLL RESULTS BY NO MORE THAN 26 PERCENTAGE POINTS IN EITHER DIRECTION A LIMITED NUMBER OF QUESTIONS WERE ASKED OF HALF THE SAMPLE FOR THESE THE MARGIN OF ERROR WAS 37 PERCENTAGE POINTS THE MARGIN FOR ANY SUBGROUP WOULD DEPEND ON THE SIZE OF THAT GROUP SEE RELATED ARTICLE PUBLIC IS LOSING FAITH IN THE DEMOCRATS' ABILITY TO RUN ECONOMY AND FOREIGN AFFAIRS POLL FINDS WSJ OCT 29 1993 9310290047 931029 BUSINESS BRIEF INTERNATIONAL BUSINESS MACHINES EMPLOYEES WILL PAY MORE FOR THEIR HEALTH COVERAGE INTERNATIONAL BUSINESS MACHINES CORP NEW YORK IS PLANNING TO REDUCE ITS ANNUAL HEALTHCARE COSTS BY 280 MILLION STARTING JAN 1 BY REQUIRING EMPLOYEES AND RETIREES TO CHIP IN MORE FOR THEIR CURRENT PLANS IBM'S GOAL IS TO CUT 7 BILLION FROM ITS BUDGET TO REDUCE OVERHEAD 9310290046 931028 THE CLINTON HEALTH PLAN THE MANAGED COMPETITION FOR THE WINNING HEALTH PLAN CLINTON UNIVERSAL COVERAGE BY END OF 1997 ACHIEVED BY REQUIRING ALL EMPLOYERS TO CONTRIBUTE TO THEIR WORKERS' HEALTH INSURANCE AND GIVING FINANCIAL ASSISTANCE TO UNEMPLOYED AND PEOPLE WITH INCOMES BELOW 150 OF THE FEDERAL POVERTY LINE ALSO GIVES FEDERAL SUBSIDIES TO SMALL LOWWAGE BUSINESSES CHAFEEDOLE UNIVERSAL COVERAGE BY 2000 ACHIEVED BY REQUIRING ALL INDIVIDUALS TO OBTAIN HEALTH COVERAGE OFFERS VOUCHERS TO PEOPLE WITH INCOMES BELOW 240 OF POVERTY LINE TO COVER SOME OR ALL OF PREMIUM COOPERGRANDY DOES NOT ACHIEVE UNIVERSAL COVERAGE INCREASES COVERAGE BY PROVIDING SUBSIDIES TO PEOPLE BELOW POVERTY LEVEL MCDERMOTTWELLSTONE UNIVERSAL COVERAGE UPON ENACTMENT FEDERAL GOVERNMENT PAYS MOST HEALTH BILLS VIRTUALLY ELIMINATING PRIVATE INSURANCE MEDICARE AND MEDICAID AND OTHER GOVERNMENT HEALTH PROGRAMS WOULD BE FOLDED INTO THE NEW SYSTEM HOUSE REPUBLICAN TASK FORCE DOESN'T GUARANTEE UNIVERSAL COVERAGE REQUIRES EMPLOYERS TO OFFER A FEDERALLY APPROVED HEALTH PLAN FOR THEIR WORKERS BUT DOESN'T REQUIRE THEM TO PAY FOR IT FEDERAL SUBSIDIES TO PROVIDE HEALTH PLANS FOR THE POOR CLINTON EMPLOYERS MUST PAY 80 OF REGIONAL AVERAGE HEALTH INSURANCE PREMIUM FOR EACH FULLTIME WORKER RAISES TAXES ON CIGARETTES BY 75 CENTS PER PACK AND INCREASES TAX ON OTHER TOBACCO PRODUCTS PAYROLL ASSESSMENT OF 1 ON BIG CORPORATIONS THAT OPT OUT OF REGIONAL INSURANCE POOLS CAPS MEDICARE AND MEDICAID SPENDING CHAFEEDOLE USES SAVINGS GLEANED FROM PLACING SPENDING CAPS ON MEDICARE AND MEDICAID TAXES EMPLOYERPROVIDED HEALTH BENEFITS EXCEEDING A CERTAIN VALUE COOPERGRANDY CAPS THE AMOUNT OF WORKER HEALTH BENEFITS EMPLOYERS CAN DEDUCT FOR TAX PURPOSES ABOLISHES MEDICAID AND REPLACES WITH SUBSIDIES TO HELP POOR PEOPLE BUY PRIVATE INSURANCE MCDERMOTTWELLSTONE INCREASES CORPORATE AND INDIVIDUAL INCOME TAXES PLACES A TAX ON HOSPITALS SUCH TAXES WOULD REPLACE THE INSURANCE PREMIUMS COMPANIES AND INDIVIDUALS NOW PAY STATES WOULD HAVE TO FUND 15 OF THE NEW PROGRAM HOUSE REPUBLICAN TASK FORCE USES SAVINGS FROM PHASING OUT SUBSIDIES FOR WEALTHY PEOPLE'S MEDICARE PREMIUMS AND RAISING MINIMUM FEDERAL RETIREMENT AGE TO 62 FROM 55 CLINTON GOVERNMENT SETS STANDARD BENEFITS PACKAGE GUARANTEED TO ALL AMERICANS COVERS MOST MEDICALLY NECESSARY SERVICES INCLUDING MENTAL HEALTH TREATMENT PRESCRIPTION DRUGS AND MANY PREVENTIVE SERVICES A SEPARATE PROGRAM WOULD COVER HOME CARE AND COMMUNITYBASED CARE CHAFEEDOLE TWO STANDARD PACKAGES OF BENEFITS SET BY THE FEDERAL GOVERNMENT ONE PROVIDES ONLY CATASTROPHIC COVERAGE THE OTHER WILL BE A COMPREHENSIVE PACKAGE BUT NARROWER THAN THE CLINTON PLAN COOPERGRANDY A NATIONAL BOARD WOULD ESTABLISH A UNIFORM BENEFITS PACKAGE MCDERMOTTWELLSTONE COVERS ALL MEDICALLY NECESSARY SERVICES INCLUDING NURSING HOME AND OTHER FORMS OF LONGTERM CARE MENTAL HEALTH AND SUBSTANCE ABUSE SERVICES DOESN'T COVER COSMETIC SURGERY OR OVERTHECOUNTER DRUGS HOUSE REPUBLICAN TASK FORCE HEALTH PLANS MUST MEET A DEFINED STANDARD OF COVERAGE INCLUDING MEDICALLY NECESSARY SERVICES AND PREVENTIVE CARE CLINTON CAPS ALLOWABLE ANNUAL INCREASE IN PRIVATE HEALTH INSURANCE PREMIUMS ESTABLISHES REGIONAL INSURANCE BUYING POOLS CALLED HEALTH ALLIANCES OF BUSINESSES AND INDIVIDUALS TO BARGAIN WITH HEALTH PLANS EMPLOYERS WITH FEWER THAN 5000 WORKERS MUST JOIN MEDICARE AND MEDICAID SPENDING CAPS CHAFEEDOLE MEDICARE AND MEDICAID SPENDING CAPS CAPS THE TAXDEDUCTIBILITY OF EMPLOYER HEALTH BENEFITS AT THE AVERAGE PRICE OF THE LEAST EXPENSIVE ONETHIRD OF THE HEALTH PLANS OFFERED BY A REGIONAL PURCHASING POOL WORKERS ALSO PAY TAX ON VALUE OF HEALTH BENEFITS EXCEEDING THAT AMOUNT SETS UP OPTIONAL COMPETING INSURANCEPURCHASING POOLS FOR EMPLOYERS WITH FEWER THAN 100 WORKERS COOPERGRANDY RELIES ON MARKET FORCES TO HOLD DOWN COSTS SETS UP INSURANCE PURCHASING POOLS TO HELP INCREASE CONSUMER MUSCLE THESE WOULD BE SMALLER AND HAVE LESS REGULATORY AUTHORITY THAN THE CLINTON HEALTH ALLIANCES EMPLOYERS WITH 100 OR FEWER WORKERS MUST JOIN MCDERMOTTWELLSTONE STATE GOVERNMENTS WOULD NEGOTIATE ANNUALLY WITH DOCTORS HOSPITALS AND OTHER PROVIDERS TO ESTABLISH A CAP ON PAYMENTS FOR MEDICAL SERVICES HOUSE REPUBLICAN TASK FORCE LIMITS ON INCREASES AND RATE VARIATIONS IN HEALTH INSURANCE PREMIUMS CHARGED TO SMALL BUSINESSES AIMS TO GENERATE MARKET FORCES TO HOLD DOWN COSTS NOTE A PLAN BY SEN PHIL GRAMM R TEXAS WOULD ALLOW PEOPLE TO PUT MONEY THEIR EMPLOYERS NOW SPEND ON THEIR HEALTH COVERAGE INTO A TAXFREE ACCOUNT TO PAY DOCTOR BILLS OR BUY COVERAGE SPECIAL TAX CREDITS WOULD HELP THE POOR BUY COVERAGE 9310290045 931029 WHAT'S NEWS WORLDWIDE CLINTON DECLARED FIVE SCORCHED CALIFORNIA COUNTIES DISASTER AREAS THE PRESIDENT'S ACTION MEANT THAT THE COUNTIES OF LOS ANGELES VENTURA ORANGE RIVERSIDE AND SAN DIEGO WOULD BE ELIGIBLE FOR FEDERAL ASSISTANCE THIRTEEN SEPARATE FIRES SOME ATTRIBUTED TO ARSON WERE STILL BURNING IN SOUTHERN CALIFORNIA THOUGH CALMER WINDS AND COOLER TEMPERATURES HELPED FIREFIGHTING EFFORTS BY LATE YESTERDAY THE WILDFIRES HAD SWEPT ACROSS 100000 ACRES DESTROYING OR DAMAGING 600 HOMES NO DEATHS WERE REPORTED LOSSES SO FAR ARE BELIEVED TO BE FAR LESS THAN THE 17 BILLION INSURERS PAID IN CLAIMS ON THE 1991 OAKLAND CALIF FIRE WHICH KILLED 25 PEOPLE EXILED HAITIAN PRESIDENT ARISTIDE SAID HE WON'T RETURN TO HAITI THIS WEEKEND DESPITE A UNBROKERED TIMETABLE IN AN ADDRESS TO THE UN GENERAL ASSEMBLY HE CALLED FOR A TOTAL BLOCKADE ON HAITI TO FORCE OUT THE COUNTRY'S MILITARY LEADERS ARISTIDE AIDES SAID HE HOPED AN EXPANDED EMBARGO WOULD INCLUDE A BAN ON COMMERCIAL AIR TRAFFIC PUBLIC CONFIDENCE HAS EBBED IN DEMOCRATS' ABILITY TO DEAL WITH THE ECONOMY ACCORDING TO A WALL STREET JOURNAL/NBC NEWS POLL ONLY 22 OF THOSE SURVEYED THINK DEMOCRATS DO A BETTER JOB THAN REPUBLICANS IN HANDLING THE ECONOMY A LARGER SHARE 27 SAY REPUBLICANS DO THE BETTER JOB PRESIDENT CLINTON URGED CORPORATE AMERICA TO SUPPORT A PROGRAM TO RETRAIN WORKERS AS A WAY OF CALMING FEARS OVER PROSPECTIVE JOB LOSSES TO MEXICO AND SELLING THE NORTH AMERICAN FREE TRADE AGREEMENT IN CONGRESS THE SENATE ETHICS COMMITTEE FOUND INFORMATION IN SEN PACKWOOD'S DIARIES RAISING QUESTIONS ABOUT POSSIBLE CRIMINAL VIOLATIONS THE PANEL'S CHAIRMAN SAID IT WAS THE FIRST TIME THAT THE PANEL WHICH IS INVESTIGATING PACKWOOD FOR ALLEGED SEXUAL MISCONDUCT HAS SAID THERE MAY HAVE BEEN CRIMINAL MISCONDUCT BY THE OREGON REPUBLICAN BABBITT PLANS TO PROCEED WITH AN INCREASE IN GRAZING FEES THAT WOULD BE STEEPER THAN THE BOOST IN A COMPROMISE PROPOSAL BLOCKED BY A SENATE FILIBUSTER THE INTERIOR SECRETARY SAID HE HADN'T ANY CHOICE BUT TO GO AHEAD WITH FEE INCREASES HE PROPOSED IN AUGUST HARVARD BUSINESS SCHOOL IS CONSIDERING OFFERING A ONEYEAR VERSION OF ITS MBA PROGRAM A MOVE THAT COULD AFFECT MANAGEMENT EDUCATION NATIONWIDE THE OPTION OF A ONEYEAR DEGREE HAS SURFACED IN A MAJOR INTERNAL REVIEW OF THE TWOYEAR MBA PROGRAM IRELAND'S PRIME MINISTER WILL TELL BRITAIN TODAY THAT DUBLIN COULD BE PREPARED TO REWRITE ITS CONSTITUTION TO REVISE ITS CLAIM TO NORTHERN IRELAND AS PART OF A PEACE FORMULA OFFICIAL SOURCES SAID THE PENTAGON ANNOUNCED IT IS CUTTING BACK ON DRUG INTERDICTION ACTIVITIES BY US SHIPS AND PLANES IN THE CARIBBEAN AND SHIFTING ITS EFFORTS TOWARD HELPING SOUTH AMERICA BATTLE ITS COCAINE CARTELS PALESTINIANS SAID THEY WANTED A FORCE OF OVER 25000 POLICEMEN TO KEEP THE PEACE ONCE ISRAELI FORCES WITHDRAW FROM THE GAZA STRIP AND WEST BANK THE PROPOSAL MADE DURING TALKS IN EGYPT WENT FAR BEYOND ISRAEL'S ESTIMATE OF REQUIRED POLICE STRENGTH YELTSIN ORDERED RUSSIA'S REGIONAL GOVERNMENTS TO PAY BILLIONS OF RUBLES IN BACK TAXES OR FACE CANCELLATION OF FEDERAL SUBSIDIES AND VARIOUS IMPORT AND EXPORT BENEFITS SOME REGIONS LED BY OILRICH TARTARSTAN STOPPED PAYING FEDERAL TAXES THIS YEAR TRIAL BY JURY WILL BE REINTRODUCED IN FIVE RUSSIAN REGIONS NEXT WEEK 76 YEARS AFTER BOLSHEVIK REVOLUTIONARIES ABOLISHED THE SYSTEM AS CORRUPT AND BOURGEOIS THE JUSTICE MINISTRY ANNOUNCED ONLY 175 CASES OF MEASLES WERE REPORTED IN THE US IN THE FIRST SIX MONTHS OF THIS YEAR THE CENTERS FOR DISEASE CONTROL AND PREVENTION SAID CITING INCREASED VACCINATION LEVELS AMONG PRESCHOOLERS SERB TANKS AND ARTILLERY POUNDED SARAJEVO AND BOSNIAN GOVERNMENT DEFENDERS RESPONDED WITH MORTAR FIRE IN A TWOHOUR BATTLE THAT LEFT AT LEAST ONE PERSON DEAD AND 22 OTHERS WOUNDED DIED DORIS DUKE 80 WHO INHERITED HER FATHER'S AMERICAN TOBACCO CO FORTUNE IN 1925 TO BECOME THE RICHEST GIRL IN THE WORLD IN BEVERLY HILLS CALIF 9310290044 931029 WHO'S NEWS ATLANTIC RICHFIELD CO ATLANTIC RICHFIELD CO LOS ANGELES KENT KRESA CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NORTHROP CORP WAS NAMED A DIRECTOR OF THIS OIL AND GAS COMPANY MR KRESA 55 YEARS OLD JOINED NORTHROP IN 1975 AND WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER IN 1987 HE ASSUMED HIS CURRENT POSTS IN 1990 AS AN ARCO DIRECTOR HE SUCCEEDS DONALD M KENDALL FORMER PEPSICO INC CHAIRMAN WHO RETIRED FROM THE ENERGY COMPANY'S BOARD IN MARCH 9310290043 931029 DIVIDEND NEWS BSB BANCORP INC BSB BANCORP INC BINGHAMTON NY DECLARED A 3FOR2 STOCK SPLIT PAYABLE DEC 10 TO SHAREHOLDERS OF RECORD NOV 23 AND INCREASED ITS QUARTERLY DIVIDEND 14 TO 19 CENTS A SHARE ON A POSTSPLIT BASIS THE DIVIDEND IS PAYABLE DEC 10 TO SHAREHOLDERS OF RECORD NOV 24 BSB IS THE BANK HOLDING COMPANY FOR BINGHAMTON SAVINGS BANK A FINANCIALSERVICES COMPANY WITH MORE THAN 1 BILLION IN ASSETS 9310290042 931029 BUSINESS BRIEFS TIDEWATER CONSTRUCTION CORP A US UNIT OF HANSON PLC'S SPECTRUM CONSTRUCTION GROUP LONDON WON A 727 MILLION CONTRACT FROM VIRGINIA'S DEPARTMENT OF TRANSPORTATION TO REPLACE A BRIDGE IN YORKTOWN VA PHILIP MORRIS COS' KRAFT GENERAL FOODS UNIT SOLD ITS US ICE CREAM BUSINESS TO UNILEVER NV AN ANGLODUTCH CONSUMERPRODUCTS COMPANY TERMS WEREN'T DISCLOSED LUKENS INC COATESVILLE PENN AND SHAW INDUSTRIES LTD TORONTO STOPPED NEGOTIATIONS ON SHAW'S PROPOSED ACQUISITION OF TWO LUKENS PIPE CORROSION PROTECTION BUSINESSES THE COMPANIES WERE UNABLE TO AGREE ON VARIOUS COMMERCIAL ISSUES AMERICAN MAIZEPRODUCTS CO'S DIRECTORS APPROVED A 160 MILLION PROGRAM TO MODERNIZE AND EXPAND THE COMPANY'S CORN WET MILLING PLANT IN HAMMOND IND TO INCREASE REVENUE AND CUT COSTS DEVELOPERS DIVERSIFIED REALTY CORP CLEVELAND COMPLETED THE PURCHASE OF THE INITIAL PHASE OF A SHOPPING CENTER IN BEDFORD IND FOR 81 MILLION BANCTEC INC DALLAS WILL BUY TERMINAL DATA CORP MOORPARK CALIF A DOCUMENT IMAGING AND SCANNING COMPANY FOR 162 MILLION SUBJECT TO A DEFINITIVE AGREEMENT AND APPROVAL BY REGULATORY AUTHORITIES AND TERMINAL DATA SHAREHOLDERS 9310290041 931029 INTERNATIONAL MAZDA EXPECTS TO STAY IN RED NEXT FISCAL YEAR BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL HIROSHIMA JAPAN MAZDA MOTOR CORP WHICH A MONTH AGO WIDENED ITS LOSS FORECAST FOR THE FISCAL YEAR ENDING NEXT MARCH EXPECTS TO STAY IN THE RED IN THE FOLLOWING FISCAL YEAR AS WELL SAID PRESIDENT YOSHIHIRO WADA MR WADA SAID IN AN INTERVIEW THAT MAZDA STILL EXPECTS THE LOSS IN THE CURRENT YEAR TO AMOUNT TO 32 BILLION YEN 2946 MILLION COMPARED WITH A PROFIT OF 262 BILLION YEN IN THE FISCAL YEAR ENDED LAST MARCH THE EXECUTIVE WOULDN'T PUT A FIGURE ON THE EXPECTED LOSS FOR THE YEAR ENDING MARCH 1995 BUT HE SAID MAZDA NOW EXPECTS TO RETURN TO THE BLACK FOR THE YEAR ENDING MARCH 1996 LIKE OTHER JAPANESE AUTO MAKERS MAZDA HAS BEEN HIT HARD BY THIS YEAR'S SHARP APPRECIATION OF THE YEN AND BY JAPAN'S RECESSION MR WADA ACKNOWLEDGED THAT THE PROJECTED RETURN TO PROFITABILITY WILL BE A LONG TIME IN COMING BUT HE MAINTAINED THAT MAZDA'S FINANCIAL RESOURCES ARE ADEQUATE AND THAT THE COMPANY HAS THE SUPPORT AND UNDERSTANDING OF ITS MAJOR SHAREHOLDERS INCLUDING FORD MOTOR CO WHICH HOLDS A 25 STAKE AND THE INFLUENTIAL SUMITOMO BANK WITH ABOUT 5 MR WADA SAID MAZDA IS RESTRUCTURING ITS OPERATIONS ON THE ASSUMPTION THAT THE YEN MAY CONTINUE TO APPRECIATE TO AROUND 100 YEN TO THE DOLLAR CURRENTLY THE YEN IS AT ABOUT 108 TO THE DOLLAR HE SAID THE YEN'S RISE IN VALUE THIS FISCAL YEAR AND LAST HAS HURT MAZDA'S PROFITABILITY TO THE TUNE OF 65 BILLION YEN A YEAR HE SAID THAT CONTINUED APPRECIATION TO THE 100 YENTOADOLLAR RANGE WOULD KNOCK AN ADDITIONAL 35 BILLION OR 36 BILLION YEN A YEAR OUT OF THE INCOME STATEMENT THE EXECUTIVE SAID THE EFFECT OF THE RECESSION INCLUDING FEWER SALES OF HIGHPROFIT CARS AND MORE SALES OF LOWPROFIT MODELS HAS BEEN TO HURT ANNUAL PROFITABILITY BY AN ADDITIONAL 40 BILLION YEN MR WADA SAID MAZDA'S VEHICLE SALES THIS FISCAL YEAR ARE EXPECTED TO DECLINE 12 TO ABOUT 111 MILLION UNITS FROM THE PRIOR YEAR'S 126 MILLION MR WADA SAID MAZDA ALREADY HAS IN PLACE MEASURES TO REDUCE ITS COSTS BY ABOUT 60 BILLION YEN A YEAR INCLUDING PREVIOUSLY ANNOUNCED PLANS TO CLOSE ONE OF THREE CARASSEMBLY LINES AT ITS HIROSHIMA PLANT TO REDUCE OFFICE AND PLANT EMPLOYMENT BY 3000 OVER THREE YEARS THROUGH ATTRITION AND TO REASSIGN 1000 OFFICE WORKERS TO DOMESTIC SALES AND SERVICE STAFFS THE 300 WORKERS ON THE ASSEMBLY LINE THAT IS TO BE CLOSED ARE TO BE REDEPLOYED TO OTHER MANUFACTURING OPERATIONS OTHER STEPS INCLUDE CUTTING CAPITAL SPENDING IN HALF MR WADA SAID AFTER INVESTING 370 BILLION YEN OVER THE PAST THREE YEARS IN NEW RESEARCH AND DEVELOPMENT OPERATIONS AND IN A NEW SUPERAUTOMATED ASSEMBLY PLANT IN JAPAN MR WADA SAID MAZDA IS CUTTING CAPITAL OUTLAYS THIS FISCAL YEAR TO 60 BILLION YEN WE EXPECT TO BE ABLE TO CONTINUE AT THAT RATE HE SAID 9310290040 931029 MCDONNELL SIGNS TECHNOLOGY TRANSFER PACT WITH MALAYSIA KUALA LUMPUR MALAYSIA MCDONNELL DOUGLAS CORP AGREED TO PARTICIPATE IN A 250 MILLION PROGRAM TO TRANSFER AEROSPACE TECHNOLOGY AND KNOWHOW TO MALAYSIA TO OFFSET THE GOVERNMENT'S PLANNED PURCHASE OF ROUGHLY 280 MILLION IN MILITARY AIRCRAFT THE AGREEMENT SIGNED THURSDAY BETWEEN MCDONNELL DOUGLAS AND THE MALAYSIAN GOVERNMENT STIPULATES THAT THE ST LOUIS MO AIRCRAFT MAKER WILL PARTICIPATE IN A VARIETY OF AVIATION PROJECTS OVER THE NEXT 10 YEARS AMONG THE VENTURES GENERALLY IDENTIFIED ARE THE MAKING OF AIRFRAME COMPONENTS THE DEVELOPMENT OF A MAINTENANCETRAINING PACKAGE FOR THE COUNTRY'S AIR FORCE AND THE TRANSFER OF MEANS TO REPAIR AND OVERHAUL GENERAL ELECTRIC CO'S 404 ENGINES THAT WILL POWER MCDONNELL DOUGLAS'S FA18D JET FIGHTERS KNOWN AS HORNETS THE SOCALLED OFFSETS PROGRAM HAD BEEN CONSIDERED BY MILITARY ANALYSTS AS A POTENTIAL HITCH THAT MIGHT DELAY IF NOT BLOCK THE PROPOSED SALE OF EIGHT TWINENGINE HORNETS BY MCDONNELL DOUGLAS THE SAME ANALYSTS NOTED THURSDAY THAT THERE MAY BE FURTHER SNAGS AND DELAYS BEFORE SPECIFIC TECHNOLOGYTRANSFER AND TRAINING PROGRAMS ARE ESTABLISHED THE ANALYSTS MAINTAINED THAT SENIOR OFFICIALS AT MALAYSIA'S MINISTRY OF DEFENSE AND OFFICERS OF THE ROYAL MALAYSIAN AIR FORCE WERE DISSATISFIED WITH THE OFFSETS PROGRAM SUBMITTED BY MCDONNELL DOUGLAS ANALYSTS SAID MALAYSIA'S MILITARY BELIEVED THAT THE PROGRAM WAS SHORT ON SPECIFICS AND FAILED TO SET FORTH DETAILED GUIDELINES FOR THE VENTURES' PARTICIPANTS DESPITE THESE CONCERNS THE AGREEMENT SIGNIFICANTLY ADVANCES MCDONNELL DOUGLAS'S CHANCES OF REACHING A FINAL SETTLEMENT ON MALAYSIA'S PURCHASE OF EIGHT HORNET ADVANCED ATTACK FIGHTERS EARLIER THIS YEAR THE COMPANY WAS HARDLY IN THE RUNNING TO PARTICIPATE IN MALAYSIA'S LARGESTEVER ARMS DEAL ONLY WHEN THE PRICE OF THE HORNETS WAS SHARPLY REDUCED AND TECHNOLOGYTRANSFER ARRANGEMENTS WERE PROPOSED DID THE COMPANY'S FIGHTER EMERGE AS A CONTENDER AGAINST THE RUSSIANMADE MIG29 9310290039 931029 LAWMAKERS QUESTION AGENCIES' ABILITY TO REGULATE THE DERIVATIVES MARKET BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MEMBERS OF THE HOUSE BANKING COMMITTEE EXPRESSED SKEPTICISM ABOUT THE ABILITY OF FEDERAL AGENCIES TO REGULATE THE FASTGROWING DERIVATIVES MARKET AND SUGGESTED THAT NEW LAWS MAY BE NECESSARY OFFICIALS FROM SIX FINANCIAL REGULATORY AGENCIES VOICED CONFIDENCE THAT THEY'RE ON TOP OF THE INCREASINGLY POPULAR PRODUCTS AND HAVE ADEQUATE REGULATORY AUTHORITY DERIVATIVES ARE FINANCIAL INSTRUMENTS THAT BANKS BROKERS AND THEIR CUSTOMERS USE TO DEFRAY THE RISK OF CHANGES IN INTEREST RATES STOCK PRICES FOREIGNEXCHANGE RATES AND COMMODITIES PRICES BUT MEMBERS OF THE BANKING PANEL REMINDED THE REGULATORS THAT THEY HAD HEARD THE SAME ASSURANCES A DECADE AGO AS THRIFTS AND BANKS WERE CHANGING IN RESPONSE TO THE DEREGULATION OF INTEREST RATES OH MY GOD THIS IS DEJA VU ALL OVER AGAIN SAID REP MARGE ROUKEMA R NJ WE'RE STILL PAYING FOR THE S&L DEBACLE REP JIM LEACH OF IOWA THE PANEL'S RANKING REPUBLICAN SAID THERE IS NO ESCAPING THE CIRCUMSTANCE THAT DERIVATIVE ACTIVITIES IN THE '90S MUST BE EXAMINED IN THE CONTEXT OF THE DECADE OF THE '80S WHEN AMERICA OVERLEVERAGED ITSELF WITH JUNK BONDS JUNK REAL ESTATE AND JUNK S&LS REP JOSEPH KENNEDY D MASS ADDED I THINK THE BASIC CONCERN IS THAT THIS IS SIMPLY ANOTHER WALL STREETDEVELOPED HOUSE OF CARDS YESTERDAY'S HEARING WAS THE PANEL'S FIRST ON THE USE OF DERIVATIVES BY BANKS LEGISLATION IF ANY WILL BE A LONG TIME COMING BUT SEVERAL MEMBERS MENTIONED AREAS WHERE THEY BELIEVE LEGISLATION MAY BE NECESSARY COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS NOTED THE ABSENCE OF STANDARDIZED AND ADEQUATE DISCLOSURE OF BANK DERIVATIVE ACTIVITIES AND SAID CONGRESS SHOULD MANDATE IMPROVED DISCLOSURE THE COMPTROLLER OF THE CURRENCY EUGENE LUDWIG AGREED THAT CURRENT REPORTING REQUIREMENTS AREN'T ADEQUATE HE SAID THAT REGULATORS ARE LOOKING AT WAYS TO REQUIRE BANKS AND OTHER DEALERS IN DERIVATIVES TO REVEAL MORE INFORMATION ABOUT THE IMPACT OF THEIR ACTIVITIES ON THEIR EARNINGS THIS WILL LEAD TO INCREASING MARKET SCRUTINY OF DERIVATIVES ACTIVITY HE SAID REP LEACH SAID THAT DERIVATIVES ACTIVITIES BY BANKS AND BROKERS ARE REGULATED AT THE FEDERAL LEVEL BUT THAT INSURANCE COMPANIES WHICH ALSO PARTICIPATE IN THE BOOMING MARKET ARE LARGELY EXEMPT FROM FEDERAL SCRUTINY MAYBE CONGRESS SHOULD ADDRESS THAT ISSUE AND I SUSPECT IT MIGHT MR LEACH SAID INSURANCE COMPANIES ARE REGULATED PRIMARILY BY STATE AGENCIES REP RICHARD BAKER R LA SUGGESTS THAT STOPTRADING ORDERS OR CIRCUIT BREAKERS SHOULD BE USED DURING PERIODS OF UNUSUAL TURBULENCE IN THE DERIVATIVES MARKETS SUCH A MOVE WOULD EXPAND THE USE OF CIRCUIT BREAKERS WHICH EXCHANGES CURRENTLY USE TO REGULATE THE LARGE OVERTHECOUNTER MARKET FOR DERIVATIVES MEMBERS OF THE PANEL REPEATEDLY MENTIONED THE COMPLEXITY AND SIZE OF THE DERIVATIVES MARKET MR GONZALEZ SAID THE THEORETICAL RISK OF LOSS THAT SOME BIG BANKS FACE EXCEEDS THEIR CAPITAL SEVERAL TIMES OVER ACCORDING TO FIGURES SUPPLIED BY THE COMPTROLLER OF THE CURRENCY CHEMICAL BANKING CORP IS THE LARGEST BANK DEALER IN DERIVATIVES WITH 211 TRILLION OF THE INSTRUMENTS OUTSTANDING THE BANK'S WORST CASE EXPOSURE TO LOSS IS 3189 BILLION OR 268 TIMES ITS CAPITAL BANKERS TRUST NEW YORK CORP THE SECONDLARGEST BANK DEALER WITH 18 TRILLION OF DERIVATIVES FACES A THEORETICAL EXPOSURE THAT IS NEARLY SIX TIMES ITS CAPITAL THE FIGURES SHOW MR LUDWIG STRESSED THAT LOSSES OF THIS SIZE COULD OCCUR ONLY IN THE HIGHLY UNLIKELY CASE THAT ALL CUSTOMERS DEFAULTED ON THEIR OBLIGATIONS EVEN IF THIS HAPPENED THE AMOUNT OF LOSS COULD WELL BE OVERSTATED THE FINANCIAL INDUSTRY IS GENERALLY UNITED BEHIND THE POSITION THAT THE CURRENT COMBINATION OF SELFREGULATION AND GOVERNMENT SUPERVISION PROVIDES ENOUGH PROTECTION AGAINST WIDESPREAD LOSSES FROM DERIVATIVES THERE IS A FEAR THAT LEGISLATION WOULD SLOW THE DEVELOPMENT OF PRODUCTS THAT ARE MARKETED PRIMARILY AS WAYS TO HEDGE AND REDUCE RISK ANDREW HOVE ACTING CHAIRMAN OF THE FEDERAL DEPOSIT INSURANCE CORP SAID THERE IS A CONSIDERABLE AMOUNT OF SELFPOLICING BECAUSE INSTITUTIONS WON'T MAKE COMMITMENTS WITH PARTIES THAT LACK FINANCIAL STRENGTH THE COMBINATION OF SOUND INSTITUTION MANAGEMENT MARKET FORCES AND APPROPRIATE REGULATORY SUPERVISION UNDER EXISTING GUIDELINES SHARPLY REDUCES THE LIKELIHOOD OF SIGNIFICANT DAMAGE TO THE BANKING INDUSTRY HE SAID 9310290038 931029 TGX PLANS TO SELL SOME ASSETS HOUSTON TGX CORP ENTERED INTO A LETTER OF INTENT TO SELL ITS NEW YORK AND OHIO ASSETS FOR 155 MILLION THE PROSPECTIVE BUYER WAS NOT IDENTIFIED TGX SAID THE SALE WOULD INCLUDE ALL OF ITS PRODUCING GAS AND OIL WELLS AND UNDEVELOPED ACREAGE IN THE TWO STATES TGX WOULD RETAIN ALL OF ITS OTHER ASSETS FOR ITS ONGOING BUSINESS AND ALSO WOULD BE ALLOWED TO SELL OR RETAIN AN INTEREST IN ANY FURTHER DEVELOPMENT OF THE NEW YORK AND OHIO PROPERTIES THE SALE IS SUBJECT TO NUMEROUS CONDITIONS AND IS EXPECTED TO CLOSE BY DEC 31 9310290037 931029 HYCOR BIOMEDICAL TECAN PACT IRVINE CALIF HYCOR BIOMEDICAL INC SAID IT SIGNED A DEVELOPMENT AND MARKETING AGREEMENT WITH THE SWISS COMPANY TECAN AG HYCOR SAID UNDER TERMS OF THE MULTIYEAR AGREEMENT THE TWO COMPANIES WILL MARKET A MODIFIED VERSION OF TECAN'S NEWEST INSTRUMENT LINE WORLDWIDE UNDER THE HYCOR NAME THE MODIFIED SYSTEM WILL BE AN AUTOMATED ALLERGY DIAGNOSTIC INSTRUMENT SYSTEM HYCOR SAID THE AGREEMENT PROVIDES FOR THE POSSIBILITY OF FUTURE COMBINED BUSINESS OPPORTUNITIES 9310290036 931029 WHO'S NEWS CONTINENTAL CORP CONTINENTAL CORP NEW YORK BRUCE B BRODIE 39 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF INFORMATION OFFICER A NEW POSITION MR BRODIE WAS MOST RECENTLY CHIEF FINANCIAL OFFICER OF THE SPECIAL OPERATIONS GROUP OF THIS PROPERTY AND CASUALTY INSURANCE COMPANY 9310290035 931029 SOUTHERN CALIFORNIA FIRE LOSSES BELIEVED TO BE SMALLER THAN IN OAKLAND DISASTER BY SARAH LUBMAN AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL WINDBLOWN BRUSH FIRES THAT SPREAD THROUGH RESIDENTIAL NEIGHBORHOODS OF SOUTHERN CALIFORNIA HAVE DEALT YET ANOTHER BLOW TO THE RECESSIONBATTERED AREA BUT LOSSES SO FAR ARE BELIEVED TO BE FAR SMALLER THAN THE 17 BILLION INSURERS PAID IN CLAIMS ON THE 1991 OAKLAND FIRE PRESIDENT CLINTON DECLARED DISASTERS IN FIVE COUNTIES WHERE THE FIRES SOME OF WHICH WERE ATTRIBUTED TO ARSON DESTROYED MORE THAN 500 HOMES DAMAGED AT LEAST 100 MORE AND BURNED OVER 100000 ACRES MOST OF THE 14 SEPARATE FIRES CONTINUED TO BURN LAST NIGHT DESPITE A RESPITE IN THE GUSTY SANTA ANA WINDS THAT SPREAD THE FLAMES BUT UNLIKE THE OAKLAND FIRE IN NORTHERN CALIFORNIA WHICH KILLED 25 PEOPLE NO DEATHS WERE REPORTED THE SCOPE OF THE DESTRUCTION WAS BROUGHT HOME BY ROUNDTHECLOCK TELEVISION COVERAGE BUT DESPITE IMAGES OF FLAMES LICKING HILLTOPS AND DEVOURING HOUSES ECONOMISTS SAID THEY DON'T EXPECT MUCH NEGATIVE LONGTERM IMPACT ON SOUTHERN CALIFORNIA'S DEPRESSED ECONOMY I DON'T SEE IT HAVING MUCH OF A RIPPLE EFFECT SAID ADRIAN SANCHEZ ECONOMIST AT FIRST INTERSTATE BANK IN LOS ANGELES WE'RE STILL TALKING ABOUT A RELATIVELY SMALL NUMBER OF HOMES MORE THAN 500 OUT OF SEVERAL MILLION HOUSEHOLDS MR SANCHEZ AND OTHER ANALYSTS DIDN'T ANTICIPATE DAMAGES ANYWHERE NEAR THE ESTIMATED 775 MILLION IN INSURED LOSSES STEMMING FROM THE LOS ANGELES RIOTS WHICH AFFECTED MAINLY COMMERCIAL PROPERTY THE RIOTS CAUSED A LOT OF LOST JOBS AND SPENDING BUT I DON'T SEE THAT THIS TIME AROUND MR SANCHEZ ADDED THE FIRES THE WORST OF WHICH WERE IN LOS ANGELES AND ORANGE COUNTIES ALSO SHOULDN'T HAVE MUCH EFFECT ON TOURISM WHICH IS STILL STRUGGLING TO EMERGE FROM THE RIOT'S SHADOW FIRE ISN'T THE TYPE OF MAJOR EVENT THAT WILL HAVE A LASTING EFFECT ON PEOPLE OR MAKE THEM CHANGE THEIR SHORTTERM TRAVEL PLANS SAID LARRY KRAUSE WHO TRACKS THE HOSPITALITY INDUSTRY FOR ARTHUR ANDERSEN & CO THERE ARE NO RELIABLE DAMAGE ESTIMATES YET THE STATE'S OFFICE OF EMERGENCY SERVICES SAID THAT THE WORST OF THE FIRES DESTROYED MORE THAN 300 HOMES IN THE COASTAL COMMUNITY OF LAGUNA BEACH 40 MILES SOUTHEAST OF LOS ANGELES A FIRE IN THE NORTHERN LOS ANGELES SUBURB OF ALTADENA DESTROYED 115 HOMES INSURANCE COMPANIES SAID THEY COULDN'T ACCURATELY PREDICT THEIR LOSSES UNTIL ALL THE FIRES SUBSIDE THE COMPANY WITH THE MOST EXPOSURE IS STATE FARM MUTUAL AUTOMOBILE INSURANCE CO WHICH HAS 257 OF THE CALIFORNIA HOMEOWNERS INSURANCE MARKET ALLSTATE INSURANCE CO HAS 156 OF THE MARKET AND FARMERS INSURANCE GROUP A UNIT OF BA T INDUSTRIES PLC HAS A 135 MARKET SHARE FOR INSURANCE COMPANIES THE FIRES CREATE MORE OF A PUBLIC RELATIONS PROBLEM THAN A FINANCIAL CONCERN SPECIFICALLY THE INSURANCE INDUSTRY HOPES TO AVOID THE SORT OF CRITICISM IT ENDURED FOLLOWING THE OAKLAND FIRE WHEN MANY HOMEOWNERS FOUND THAT THEIR INSURANCE FAILED TO COMPLETELY COVER REBUILDING COSTS AFTER THE OAKLAND FIRE WHICH BURNED 3000 HOMES CALIFORNIA INSURANCE COMMISSIONER JOHN GARAMENDI JOINED WITH CONSUMERS GROUPS IN FORCING INSURERS TO PAY 300 MILLION MORE IN CLAIMS THAN THEY ORIGINALLY AGREED TO IN ADDITION ALLSTATE AGREED TO PAY A 1 MILLION FINE FOR WHAT THE INSURANCE DEPARTMENT ALLEGED WAS ITS SLOWNESS IN PAYING SOME CLAIMS ALLSTATE SAID YESTERDAY ITS AGENTS AND ADJUSTERS HAVE BEEN GIVEN ADDITIONAL TRAINING SINCE THE OAKLAND FIRE AND THAT THEY ARE BETTER EQUIPPED TO EXPLAIN COVERAGE TERMS TO VICTIMS WE LEARNED A LOT FROM OAKLAND SAID AN ALLSTATE SPOKESMAN A SPOKESMAN FOR THE INSURANCE INFORMATION INSTITUTE A TRADE GROUP SAID OTHER COMPANIES HAVE TAKEN SIMILAR STEPS MANY COMPANIES RAN COMMERCIALS URGING BURNEDOUT POLICYHOLDERS TO CALL TOLLFREE NUMBERS FOR ASSISTANCE 9310290034 931029 WHO'S NEWS UNIVERSAL ELECTRONICS INC UNIVERSAL ELECTRONICS INC TWINSBURG OHIO THOMAS G MURDOUGH JR 54 YEARS OLD PRESIDENT AND FOUNDER OF CLOSELY HELD STEP 2 CORP STREETSBORO OHIO AND BRIAN J JACKMAN 52 PRESIDENT OF TELLABS OPERATIONS INC A UNIT OF TELLABS INC OF LISLE ILL WERE ELECTED DIRECTORS OF THIS MAKER OF REMOTE CONTROLS FOR THE REPLACEMENT MARKET THE MOVE INCREASES THE COMPANY'S BOARD TO EIGHT MEMBERS 9310290033 931029 WHO'S NEWS UNIONFED FINANCIAL CORP UNIONFED FINANCIAL CORP BREA CALIF WILLIAM T DONOVAN J DAVID KALL AND DAVID J PRIMUTH WERE ELECTED DIRECTORS OF THIS BANK HOLDING COMPANY THEIR ADDITION FILLS A VACANCY CREATED BY THE RESIGNATION OF ROBERT E NOVELL 47 YEARS OLD AND INCREASES THE BOARD TO NINE MEMBERS FROM SEVEN MR DONOVAN 41 IS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF CHRISTIANA COS MR KALL 58 IS A PRIVATE INVESTOR MR PRIMUTH 55 IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF JWP PACIFIC INTERNATIONAL INC 9310290032 931029 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 CBS INC 100 MILLION OF SENIOR NOTES DUE NOV 1 2023 PRICED AS 7125S AT 9994 TO YIELD 713 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 90 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA BY STANDARD & POOR'S CORP THE BONDS WERE SOLD THROUGH A COMPETITIVE BID WON BY BEAR STEARNS & CO ILLINOIS POWER CO 110 MILLION OF FIRST MORTGAGE BONDS DUE APRIL 15 2000 PRICED AS 5625S AT 99435 TO YIELD 5732 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO INTERNATIONAL PAPER CO 200 MILLION OF DEBENTURES DUE NOV 1 2023 PRICED AS 6875S AT 98588 TO YIELD 6988 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 76 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO NATIONAL WESTMINSTER BANK PLC 500 MILLION OF EXCHANGEABLE CAPITAL SECURITIES PRICED WITH A 7875 DIVIDEND YIELD ACCORDING TO MCM CORPORATEWATCH THE COMPANY ISSUED 20 MILLION SHARES AT 25 EACH THE SECURITIES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC WITH MERRILL LYNCH & CO SPORTS & RECREATION INC 65 MILLION OF 425 CONVERTIBLE SUBORDINATED NOTES DUE NOV 1 2000 PRICED AT 100 OF THEIR PRINCIPAL AMOUNT IN A PRESS RELEASE THE COMPANY SAID THE NOTES ARE CONVERTIBLE INTO COMMON STOCK AT ANY TIME PRIOR TO MATURITY UNLESS PREVIOUSLY REDEEMED AT A CONVERSION PRICE OF 3825 A SHARE SUBJECT TO ADJUSTMENT IN CERTAIN EVENTS THE NOTES WILL BE REDEEMABLE IN WHOLE OR IN PART AT ITS OPTION AT ANY TIME ON OR AFTER NOV 10 1996 AT REDEMPTION PRICES BEGINNING AT 10213 OF THEIR PRINCIPAL AMOUNT DECLINING TO PAR ON AND AFTER NOV 1 1999 CS FIRST BOSTON INC LEHMAN BROTHERS INC AND SMITH BARNEY SHEARSON INC ARE THE UNDERWRITERS THE COMPANY GRANTED THE UNDERWRITERS AN OPTION TO PURCHASE AN ADDITIONAL 975 MILLION PRINCIPAL AMOUNT OF NOTES TO COVER OVERALLOTMENTS INTERFILM INC INITIAL OFFERING OF TWO MILLION COMMON SHARES PRICED AT 9 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC PARTNERRE HOLDINGS LTD INITIAL OFFERING OF 325 MILLION COMMON SHARES PRICED AT 20 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC NASSAU COUNTY NY 1017 MILLION BONDS APPARENTLY WON BY A ROOSEVELT & CROSS INC GROUP THE 892 MILLION SERIES N UNLIMITEDTAX BONDS FOR GENERAL IMPROVEMENT ARE BELIEVED TO HAVE BEEN WON WITH A BID SETTING THE NET INTEREST COST AT 49856 THEY ARE PRICED TO YIELD FROM 33 IN 1995 TO 52 IN 2012 AND 2013 THE 125 MILLION SERIES P UNLIMITEDTAX COMBINED SEWERDISTRICT BONDS WERE APPARENTLY WON WITH A BID SETTING THE NET INTEREST COST AT 51275 THEY ARE ALSO PRICED TO YIELD FROM 33 IN 1995 TO 52 IN 2012 AND 2013 THIS ISSUE IS INSURED BY THE CAPITAL GUARANTY INSURANCE CO AND CARRIES TRIPLEA RATINGS FROM MOODY'S AND S&P NEW YORK TRIBOROUGH BRIDGE & TUNNEL AUTHORITY 1731 MILLION SERIES 1993B GENERALPURPOSE REVENUE BONDS PRICED BY A CS FIRST BOSTON INC GROUP YIELDS RANGE FROM 3 IN 1995 TO 555 FOR ZEROCOUPON BONDS DUE IN 2021 AND 2022 MOODY'S HAS RATED THE BONDS DOUBLEA AND S&P HAS ASSIGNED A SINGLEAPLUS RATING VIRGINIA HOUSING DEVELOPMENT AUTHORITY 1632 MILLION COMMONWEALTH MORTGAGE BONDS APPARENTLY WON BY A CS FIRST BOSTON INC GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 2777 THE OFFERING INCLUDES 1188 MILLION SERIES I SUBSERIES ISTEMS OR SHORTTERM EXTENDIBLE SECURITIES AND 444 MILLION SERIES J SUBSERIES JSTEMS THE ISTEMS ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX BOTH THE ISTEM AND JSTEM SECURITIES HAVE AN INITIAL TENDER DATE OF NOV 4 1994 THE ISTEMS ARE PRICED AS 28S AT PAR AND ARE TO YIELD 28 BEFORE THE TENDER DATE THE JSTEMS WHICH ARE 27S AT PAR ARE TO YIELD 27 BEFORE NOV 4 1994 ON THE INITIAL TENDER DATE EACH BOND IS SUBJECT TO MANDATORY TENDER AND REMARKETING AT THAT TIME THE INTEREST RATE WILL BE SUBJECT TO CONVERSION TO A LONGTERM RATE OR ADJUSTMENT TO A NEW SHORTTERM RATE IF THE INTEREST RATE IS NOT CONVERTED TO A LONGTERM RATE ON ITS INITIAL TENDER DATE THE BOND WILL BE SUBJECT TO MANDATORY TENDER AND REMARKETING ON EACH SUBSEQUENT TENDER DATE UNTIL THE INTEREST RATE IS CONVERTED TO A LONGTERM RATE THE BONDS ARE SECURED BY MORTGAGE LOANS REVENUES AND OTHER FUNDS AND ASSETS OF THE VIRGINIA HOUSING DEVELOPMENT AUTHORITY THEY HAVE BEEN RATED DOUBLEA/VMIG1 BY MOODY'S FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY NOMURA SECURITIES THE OFFERING SERIES 1993G38 IS BACKED BY 65 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1993G39 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS AN AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY JP MORGAN SECURITIES INC THE OFFERING SERIES 1993230 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS BANCO NAZIONALE DEL LAVORO SPA ITALY 75 MILLION OF SUBORDINATED COLLARED FLOATINGRATE DEPOSITARY RECEIPTS DUE NOV 26 2003 AT ISSUE AND FIXED REOFFER PRICE 9975 VIA MORGAN STANLEY INTERNATIONAL BONDS PAYABLE SEMIANNUALLY AT SIXMONTH LONDON INTERBANK OFFERED RATE LESS 1875 BASIS POINTS SUBJECT TO MINIMUM COUPON 55 AND MAXIMUM 9 FEES 05 CREDIT LOCAL DE FRANCE FRANCE 200 MILLION OF 5125 EUROBONDS DUE NOV 30 1998 AT ISSUE AND FIXED REOFFER PRICE 9976 VIA MITSUBISHI FINANCE INTERNATIONAL PLC BONDS PRICED TO YIELD 518 A MARGIN OF 22 BASIS POINTS ABOVE NEW 475 US TREASURY OF OCTOBER 1998 FEE 025 EUROFIMA SUPRANATIONAL 15 BILLION FRENCH FRANCS OF 5625 EUROBONDS DUE NOV 25 1999 AT ISSUE PRICE 10113 VIA BANQUE PARIBAS REOFFERED AT 9953 TO YIELD 572 A SPREAD OF 12 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURYS FEES 1875 EUROPEAN INVESTMENT BANK SUPRANATIONAL 400 MILLION OF 6 EUROBONDS DUE AUG 10 1999 AT ISSUE AND FIXED REOFFER PRICE 98261 VIA IBJ INTERNATIONAL LTD AND SG WARBURG SECURITIES LTD BONDS PRICED TO YIELD 6365 A MARGIN OF ONE BASIS POINT OVER NEW 6 GILT OF 1999 FEES 025 FINANCE FOR DANISH INDUSTRY DANISH AGENCY 15 BILLION YEN OF 3 EUROBONDS DUE MARCH 6 1997 AT ISSUE AND FIXED REOFFER PRICE 100175 VIA DAIWA EUROPE LTD AND FUJI INTERNATIONAL FINANCE PLC BONDS PRICED TO YIELD 294 FEES 02 FORD CREDIT EUROPE PLC US PARENT 200 MILLION OF FLOATINGRATE EURONOTES DUE DECEMBER 1996 AT ISSUE AND FIXED REOFFER PRICE 99865 VIA GOLDMAN SACHS INTERNATIONAL LTD INTEREST SEMIANNUALLY AT THE SIXMONTH LIBOR PLUS 15 BASIS POINTS CALLABLE AFTER TWO YEARS AT PAR FEES 0175 LEEDS PERMANENT BUILDING SOCIETY UK 20 BILLION YEN OF 35 EUROBONDS DUE MAR 8 1999 AT ISSUE AND FIXED REOFFER PRICE 9982 VIA DAIWA EUROPE LTD AND FUJI INTERNATIONAL FINANCE PLC AT REOFFER PRICE BONDS YIELD 354 FEES 03 SAPAR FRANCE 100 MILLION SWISS FRANCS OF 4125 PUBLIC BONDS DUE JAN 7 2004 PRICED AT 102 VIA CREDIT SUISSE FEES 275 SOGO CO JAPAN 300 MILLION SWISS FRANCS OF 4375 PRIVATELY PLACED NOTES DUE NOV 17 1998 PRICED AT 101 VIA UNION BANK OF SWITZERLAND FEES 15 VIENNA AUSTRIAN MUNICIPALITY 120 MILLION SWISS FRANCS OF 425 PRIVATELY PLACED NOTES DUE JAN 31 2000 PRICED AT 1025 VIA SWISS BANK CORP FEES 1625 VIENNA AUSTRIAN MUNICIPALITY 100 MILLION CANADIAN DOLLARS OF 6375 EUROBONDS DUE DEC 15 2000 AT ISSUE PRICE 100135 VIA HAMBROS BANK LTD REOFFERED AT 98775 TO YIELD 66 A MARGIN OF 17 BASIS POINTS ABOVE INTERPOLLATED YIELD CURVE OF 65 CANADIAN GOVERNMENT BOND DUE 1998 AND 75 BOND DUE 2003 FEES 1875 9310290031 931029 QUIDEL FILES FOR FDA TO APPROVE THE SALE OF BIRTHCONTROL ITEM SAN DIEGO QUIDEL CORP IS SEEKING FOOD AND DRUG ADMINISTRATION APPROVAL TO MARKET ITS NEW SAFEPLAN BIRTHCONTROL METHOD SAID SCOTT L GLENN CHAIRMAN AND CHIEF EXECUTIVE THE NEW METHOD WHICH THE EXECUTIVE SAID IS THE FIRST OF ITS KIND USES A CHEMICALLY TREATED PLASTIC STRIP TO TEST A WOMAN'S URINE FOR A TELLTALE ELEMENT OF THE HORMONE PROGESTERONE THE ELEMENT KNOWN AS PDG EXISTS DURING THE NONFERTILE PHASE OF A WOMAN'S MONTHLY CYCLE USING THE TEST ALONG WITH THE TRADITIONAL RHYTHM METHOD IS ABOUT 93 TO 95 EFFECTIVE MR GLENN SAID THE EXECUTIVE SAID THE FDA APPLICATION FOR APPROVAL WAS FILED BY MAIL TUESDAY HE SAID HE EXPECTS APPROVAL IN ABOUT A YEAR BUT THAT SALES IN EUROPE WILL BEGIN PERHAPS AS SOON AS NEXT APRIL OR MAY DUE TO THE STREAMLINED REGULATORY PROCESS THERE QUIDEL A DEVELOPER MANUFACTURER AND MARKETER OF DIAGNOSTIC TESTS DESIGNED TO YIELD RESULTS IN A FEW MINUTES FOCUSES ON HEALTHCARE PRODUCTS THAT DON'T REQUIRE PHYSICIAN REFERRALS OR FOLLOWUP TREATMENT OF ANY KIND MR GLENN SAID THIS SOCALLED POINTOFCARE PRODUCT STRATEGY IS CONSISTENT WITH THE MANDATE OF THE CLINTON ADMINISTRATION TO REDUCE REFERRALS AND MULTIPLE VISITS TO HOSPITALS AND DOCTORS' OFFICES THE EXECUTIVE SAID MR GLENN SAID THE EUROPEAN MARKET FOR OVERTHECOUNTER BIRTHCONTROL PRODUCTS IN LARGELY CATHOLIC COUNTRIES SUCH AS FRANCE GERMANY ITALY AND SPAIN IS EVEN MORE ATTRACTIVE THAN THE US MARKET WHICH HE ESTIMATES TO BE SEVERAL HUNDRED MILLION DOLLARS A YEAR HE SAID SAFEPLAN WOULD COST CONSUMERS BETWEEN 8 AND 15 PER MONTH TO USE BUT DECLINED TO GIVE SALES PROJECTIONS FOR THE NEW PRODUCT THE TEST TAKES A LITTLE MORE THAN FIVE MINUTES TO ADMINISTER AND CAN BE CONDUCTED IN THE HOME MR GLENN SAID HE SAID THE TEST DIFFERS FROM CURRENT PRODUCTS BECAUSE IT SHOWS WOMEN WHEN OVULATION IS OVER RATHER THAN WHEN IT IS ABOUT TO START THIS FEATURE MAKES IT THE FIRST PRODUCT TO DIRECT WOMEN TOWARD A WINDOW OF CONVENIENCE DURING WHICH THEY CAN'T BECOME PREGNANT HE SAID 9310290030 931029 WARNACO AUTHENTIC POST PROFIT INCREASES FOR LATEST PERIODS NEW YORK CITING STRONG GAINS AT THEIR CORE APPAREL UNITS WARNACO GROUP INC SAID THIRDQUARTER NET INCOME ROSE 12 WHILE AUTHENTIC FITNESS CORP SAID FISCAL FIRSTQUARTER NET INCOME INCREASED 18 FOR THE QUARTER ENDED OCT 2 WARNACO GROUP REPORTED NET OF 172 MILLION OR 87 CENTS A SHARE COMPARED WITH 154 MILLION OR 76 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 8 TO 184 MILLION WARNACO GROUP SAID IT SIGNED AN EXCLUSIVE NATIONAL DISTRIBUTION AGREEMENT WITH AVON PRODUCTS INC FOR ITS INTIMATE APPAREL THE AGREEMENT FOLLOWS A RECENT TEST RUN BY THE TWO COMPANIES TERMS WEREN'T DISCLOSED THE GROUP ALSO SAID IT EXPECTS TO ACQUIRE WORLDWIDE RIGHTS FOR CATALINA MENSWEAR AND WOMEN'S SPORTSWEAR FROM AUTHENTIC FITNESS WHILE THE COMPANIES' SHARES TRADE SEPARATELY LINDA J WACHNER IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BOTH FOR ITS FIRST QUARTER ENDED OCT 2 AUTHENTIC FITNESS REPORTED NET OF 18 MILLION OR 21 CENTS A SHARE COMPARED WITH 15 MILLION OR 17 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 20 TO 286 MILLION THE VAN NUYS CALIF COMPANY SAID IT COMPLETED ITS ACQUISITION OF CATALINA COLE AND ANNE COLE SWIMWEAR AND COLONIAL SPORTSWEAR FOR 457 MILLION THE COMPANY EXPECTS TO COMPLETE ITS SALE OF COLONIAL'S ASSETS WITHIN 60 DAYS AUTHENTIC FITNESS ALSO SAID ITS SPEEDO SWIMWEAR UNIT CONTINUED TO PERFORM STRONGLY WITH A 32 INCREASE IN SALES TO 167 MILLION IN THE FIRST QUARTER THE COMPANY PLANS TO OPEN EIGHT SPEEDO/AUTHENTIC FITNESS RETAIL STORES BY THE CLOSE OF THE CALENDAR YEAR GIVING THE COMPANY 10 SUCH STORES IT PLANS TO OPEN 40 STORES IN 1994 IN LATE NEW YORK STOCK EXCHANGE TRADING AUTHENTIC FITNESS SHARES WERE UP 175 OR 69 TO 27 ALSO ON THE BIG BOARD WARNACO SHARES WERE UP 25 CENTS TO 35125 9310290029 931029 PILGRIM GROUP NO PURITAN IRKS MORESTAID FUNDS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES PILGRIM GROUP CHAIRMAN PALOMBA WEINGARTEN DOESN'T MUCH CARE FOR THE REST OF THE MUTUALFUND INDUSTRY THE FEELING IS MUTUAL MRS WEINGARTEN'S CRITICS MOSTLY MALE EXECUTIVES AT COMPETING FUND COMPANIES SAY SHE'S A LOOSE CANNON WHO HAS PUSHED THE OUTER LIMIT OF MUTUALFUND REGULATIONS BY USING ACCOUNTING PRACTICES THAT OVERSTATE BONDFUND PAYOUTS RUNNING MISLEADING ADVERTISING AND IN ONE CASE TINKERING WITH A MUTUAL FUND'S STRUCTURE TO SLAM THE DOOR AGAINST A POSSIBLE WAVE OF SHAREHOLDER WITHDRAWALS DISGUSTING RETORTS MRS WEINGARTEN IF YOU WANT TO CRITICIZE ME PICK UP THE PHONE AND SAY HEY BITCH WHAT ABOUT THE AD' DEAL WITH ME LIKE A MAN THE HARSH CRITICISM OF MRS WEINGARTEN SAYS A LOT ABOUT THE FUND INDUSTRY AFTER A DECADE OF EXPLOSIVE GROWTH WHAT THE CHATTER ABOUT THE 51YEAROLD MRS WEINGARTEN REPRESENTS IS THE INDUSTRY'S PERVASIVE FEAR THAT ITS RAPID GROWTH WILL BE DERAILED BY A TERRIBLE SCANDAL BROUGHT ON BY A RENEGADE MUTUALFUND GROUP ANY COMPANY THAT PLAYS TOO CLOSE TO THE EDGE RUNS THE RISK OF GIVING THE ENTIRE INDUSTRY A BLACK EYE SAYS OPPENHEIMER MANAGEMENT CORP CHAIRMAN JON FOSSEL THERE ARE SOME WHO BELIEVE THAT PILGRIM HAS BEHAVED THAT WAY REPEATEDLY THERE'S NO DOUBT THAT PILGRIM IS RUN BY A TOUGHMINDED WOMAN DURING A LUNCHTIME MEETING SHE THREATENED APPARENTLY IN JEST TO FIND A 12GAUGE SHOTGUN TO SHOOT OFF THE KNEES OF TWO REPORTERS IF THEY REVEALED THE CONTENTS OF AN OFFTHERECORD CONVERSATION MRS WEINGARTEN IS NO GENTLER WITH THE SECURITIES AND EXCHANGE COMMISSION WHICH REGULATES MUTUAL FUNDS WHEN THE SEC EXAMINES A FUND COMPANY THE INDUSTRY'S TOP COPS TYPICALLY GET AN OFFICE OR CONFERENCE ROOM TO WORK IN BUT WHEN SEC INSPECTORS VISITED PILGRIM THEY ENDED UP TOILING AWAY IN THE LUNCHROOM SOME OF MRS WEINGARTEN'S SUPPORTERS RECKON HER STYLE WOULDN'T WARRANT ATTENTION EXCEPT THAT SHE'S A WOMAN SHE GETS A BAD RAP CONTENDS ROBERT SPADAFORA A FORMER PILGRIM EMPLOYEE WHO NOW WORKS FOR LIBERTY MUTUAL INSURANCE CO PAM WEINGARTEN IS A VERY COMPETITIVE WOMAN SOME MEN ARE THREATENED BY THAT AT FIRST GLANCE MRS WEINGARTEN'S CAREER SEEMS LIKE A MUTUALFUND SUCCESS STORY SHE HAS OVERSEEN RAPID GROWTH AT PILGRIM WHICH HAS 3 BILLION UNDER MANAGEMENT SHE HAS BEEN AMONG THE PIONEERS IN THE INTRODUCTION OF ADJUSTABLERATEMORTGAGE FUNDS SHORTTERM GLOBALINCOME FUNDS AND PRIMERATE FUNDS WHICH INVEST IN LOWERQUALITY BANK LOANS SHE LIVES IN THE EXCLUSIVE HOLMBY HILLS SECTION OF LOS ANGELES AND ALSO LEASES A 30ACRE RANCH IN MALIBU EVEN HER CRITICS TALK ABOUT HOW INTELLIGENT SHE IS BUT THAT'S WHERE THE COMPLIMENTS OFTEN END EARLIER THIS YEAR CHICAGO NEWSLETTER MORNINGSTAR MUTUAL FUNDS RAN A SCATHING ARTICLE ABOUT A PILGRIM ADVERTISEMENT THAT PROCLAIMED THE FINAL 1992 MUTUAL FUND RANKINGS AS DETERMINED BY LIPPER ANALYTICAL SERVICES THE AD THEN LISTED FIVE PILGRIM FUNDS WHICH WERE RANKED NO 1 THROUGH NO IN HIS ARTICLE MORNINGSTAR PUBLISHER DON PHILLIPS SAID THE AD IMPLIED THAT PILGRIM MANAGED THE FIVE BESTPERFORMING FUNDS IN 1992 IN FACT HE WROTE THE FUNDS APPEARED TO DO THAT WELL ONLY WHEN RANKED WITHIN NARROWLY DEFINED CATEGORIES PILGRIM IS SUING MR PHILLIPS AND MORNINGSTAR FOR LIBEL IN CALIFORNIA STATE COURT IN LOS ANGELES MRS WEINGARTEN SAYS THE AD MADE CLEAR IN A FOOTNOTE THAT EACH FUND WAS RANKED WITHIN ITS OWN CATEGORY SHE ADDS THAT SHE HAS NEVER MET MR PHILLIPS AND WOULDN'T RECOGNIZE HIM IF I RAN OVER HIM WITH AN 18WHEELER TOUGH TALK LIKE THAT IS RARE IN THE MUTUALFUND INDUSTRY BUT MRS WEINGARTEN IS HARDLY THE TYPICAL FUNDCOMPANY CHAIRMAN SHE WAS RAISED IN THE NEW YORK BOROUGH OF THE BRONX HER FATHER WAS A MAILMAN AND HER MOTHER WORKED IN A COFFEE SHOP MRS WEINGARTEN'S FIRST LOVE WAS NOT INVESTING BUT MUSIC BUT IN THE EARLY 1970S SHE QUIT GRADUATE SCHOOL WHERE SHE WAS STUDYING MUSIC AND WENT TO WALL STREET SHE SPENT SEVEN YEARS AS A BROKER WITH DEAN WITTER REYNOLDS INC BEFORE BECOMING A MONEY MANAGER FOR A SUBSIDIARY OF CHASE MANHATTAN CORP IN 1982 TWO YEARS LATER SHE BECAME CHIEF EXECUTIVE OFFICER OF PILGRIM GROUP MRS WEINGARTEN HAS SINCE COME UNDER FIRE ON A HOST OF ISSUES PILGRIM IS A CARICATURE OF ALL THE BAD THINGS IN THE INDUSTRY ARGUES JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS WHOSE PARENT IS THE DEFENDANT IN THE LIBEL SUIT BY PILGRIM MR REKENTHALER POINTS TO THE WAY PILGRIM STOPPED ALLOWING SHAREHOLDER WITHDRAWALS AT ITS PRIMERATE FUND LAST YEAR AFTER MERRILL LYNCH & CO'S PRIMERATE FUND SUSTAINED MASSIVE REDEMPTIONS BY DEPARTING SHAREHOLDERS DURING ONE OF ITS TENDER OFFERS PILGRIM HAD ITS OWN FUND LISTED ON THE NEW YORK STOCK EXCHANGE SHAREHOLDERS CAN STILL GET OUT OF THE PILGRIM FUND BUT WHEREAS BEFORE THEY COULD SELL THEIR SHARES BACK TO THE FUND FOR THE SHARES' FULL VALUE THESE DAYS THEY CAN ONLY GET OUT BY SELLING THEIR SHARES TO OTHER INVESTORS THROUGH THE BIG BOARD WHERE THE SHARES ARE TRADING FOR 7 LESS THAN THEIR FULL VALUE MRS WEINGARTEN CONTENDS SHE HAD NO CHOICE IF HER FUND SUFFERED THE SORT OF EXODUS SEEN BY MERRILL WE WOULD HAVE BEEN FORCED TO SELL HEALTHY LOAN PARTICIPATIONS INTO A WEAK MARKET AT FIRESALE PRICES SHE SAYS MRS WEINGARTEN IS FORTHRIGHT IN CALLING TWO OF HER FIRM'S FUNDS A MISTAKE DURING SEPTEMBER 1992'S EUROPEAN CURRENCY TURMOIL PILGRIM'S TWO SHORTTERM GLOBAL INCOME FUNDS TUMBLED MORE THAN 10 WORSE THAN ANY OTHER FUND WE TRIED OUR HANDS AT THE SHORTTERM MULTIMARKET FUND AND FRANKLY BLEW IT SAYS MRS WEINGARTEN PILGRIM'S OTHER FUNDS HAVE HAD MIXED RESULTS SOME SUCH AS THE COMPANY'S ADJUSTABLERATE MORTGAGE FUNDS HAVE BEEN TOP PERFORMERS BUT OTHERS SUCH AS THE PILGRIM CORPORATE UTILITIES FUND HAVE HAD LACKLUSTER RESULTS SINCE EARLY 1991 PILGRIM HAS BROUGHT OUT FIVE TAXABLE BOND FUNDS WHERE TO BOLSTER THE DIVIDEND PAYOUT IT TOOK THE UNUSUAL STEP OF DEDUCTING PART OF THE FUNDS' ANNUAL FEE FROM SHAREHOLDERS' CAPITAL SUCH FEES ARE USUALLY SUBTRACTED FROM DIVIDENDS PAID TO SHAREHOLDERS PILGRIM'S ACCOUNTING ALLOWS ITS FUNDS TO BOAST A HIGHER DIVIDEND RATE WHICH COMES AT THE EXPENSE OF A DECLINE IN THE FUND'S SHARE PRICE OUR PERCEPTION AT THE TIME WAS THAT SHAREHOLDERS WERE MORE INTERESTED IN GREATER INCOME SAYS MRS WEINGARTEN BACK IN 1985 PILGRIM MERGED THE 37 MILLION PILGRIM FUND INTO THE 13 MILLION MAGNACAP FUND MAGNACAP MAY HAVE BEEN THE SMALLER FUND BUT IT HAD A FAR BETTER FIVEYEAR RECORD 162 A YEAR OVER THE PRIOR FIVE YEARS COMPARED WITH 76 FOR THE PILGRIM FUND THE MERGER OF THE TWO STOCK FUNDS ALLOWED PILGRIM GROUP TO KILL OFF THE MEDIOCRE PILGRIM FUND RECORD AND PUBLICIZE MAGNACAP'S RECORD INSTEAD MRS WEINGARTEN'S RESPONSE A LOT OF PEOPLE HAVE DONE THAT SHE SNAPS IN FACT ALTHOUGH PILGRIM'S ACTIONS GARNER A LOT OF ATTENTION SOME OTHER FUND COMPANIES HAVE INDULGED IN THE SAME PRACTICES TEMPLETON FUNDS MANAGEMENT FOR INSTANCE HAS EXECUTED A MINNOWSWALLOWSAWHALE MERGER LAST YEAR KEMPER CORP AND MERRILL LYNCH ALSO HAD SORRY PERFORMANCE WITH THEIR GLOBAL INCOME FUNDS LIKE PILGRIM SOME OF EATON VANCE CORP'S FUNDS DEDUCT A PORTION OF THEIR FEE FROM INVESTORS' CAPITAL PILGRIM IS JUST ONE MORE AGGRESSIVE MARKETING ORGANIZATION WHERE THE NAME OF THE GAME IS GATHERING ASSETS SAYS VANGUARD GROUP CHAIRMAN JOHN BOGLE BUT IT'S NOT JUST PILGRIM I HASTILY ADD IF THAT'S THE CASE WHY IS MRS WEINGARTEN THE SUBJECT OF SUCH INCESSANT GOSSIP HER REPUTATION HAS A WHOLE LOT TO DO WITH HER PERSONAL STYLE RATHER THAN WITH THE FUNDS SHE BRINGS TO THE MARKET SAYS JOYCE FENSTERSTOCK PRESIDENT OF PAINEWEBBER MUTUAL FUNDS MRS WEINGARTEN HAS BEEN KNOWN TO USE PILGRIM'S TRADING POWER TO PUNISH WALL STREET FIRMS THAT DISPLEASE HER ONE TIME SHE CUT OFF TRADES THROUGH A WELLKNOWN INVESTMENT BANK AFTER ONE OF MRS WEINGARTEN'S FRIENDS WENT JOBHUNTING AND WAS TOLD BY ONE OF THE FIRM'S BANKERS THAT YOU'LL NEVER MAKE IT IN THIS BUSINESS WITHOUT AN MBA MRS WEINGARTEN SAYS THE BANKER HAD MADE THE SAME DISPARAGING COMMENT TO HER SEVEN YEARS EARLIER FORMER PILGRIM EMPLOYEES ARE SOMETIMES CRITICAL OF HER ROBERT GRUNBURG WHO RESIGNED AS PILGRIM'S PRESIDENT IN JULY AFTER A DISPUTE WITH MRS WEINGARTEN HAS SINCE SENT PILGRIM FUNDS' DIRECTORS A SET OF CORRESPONDENCE WHICH HE ALLEGES SHOWS MRS WEINGARTEN IMPROPERLY USED MUTUALFUND ASSETS TO PAY A CONSULTANT'S FEE IT WAS A NORMAL CONSULTING ARRANGEMENT INSISTS THEODORE COHEN PILGRIM'S GENERAL COUNSEL WE'VE ADDRESSED THE ISSUES THAT HAVE BEEN RAISED BY THE BOARD IN CONNECTION WITH THIS MR GRUNBURG DECLINES TO COMMENT ON THE INCIDENT BUT SOME FORMER EMPLOYEES AS WELL AS THOSE WHO STILL WORK FOR PILGRIM ARE INTENSELY LOYAL TO MRS WEINGARTEN THEY TALK ABOUT HOW SHE PROMOTES FROM WITHIN HOW SHE OFTEN HIRES WOMEN AND MINORITIES AND HOW SHE OCCASIONALLY INVITES EMPLOYEES OVER TO HER HOME THERE'S OBVIOUSLY TWO VERY DIFFERENT PEOPLE THERE SAYS STEPHEN WHITE A BOND MANAGER WHO LEFT PILGRIM TO JOIN NEUBERGER & BERMAN MANAGEMENT MRS WEINGARTEN DOESN'T HAVE A LOT OF COMPASSION FOR HER COMPETITORS BUT ON A PERSONTOPERSON BASIS SHE'S VERY COMPASSIONATE PAM WAS LIKE MOM AT TIMES THE FIERCELY COMPETITIVE MRS WEINGARTEN SAYS SHE EVEN COMPETES WITH HER HUSBAND ROBERT WEINGARTEN WHO DECLINED TO BE INTERVIEWED IN 1959 THE COUPLE MET WHILE PLAYING IN A STUDENT ORCHESTRA MRS WEINGARTEN SAYS THEY ARGUED ABOUT INVESTING ON THEIR FIRST DATE EARLY ON MR WEINGARTEN MADE A MARK AS A MAGAZINE PUBLISHER BUT BY 1983 HE HAD CLOSED OR SOLD HIS PUBLICATIONS AND WAS LOOKING FOR A CHANGE ONE EVENING IN THEIR MANHATTAN APARTMENT MR WEINGARTEN SUGGESTED TO HIS WIFE THAT THEY MOVE TO LOS ANGELES SHE RESPONDED BY THROWING A HAIRBRUSH AT HIM I THOUGHT HE WAS GOING THROUGH A MIDLIFE CRISIS SHE RECALLS THE HAIRBRUSH MISSED AND SHE AGREED TO THE MOVE NOT LONG AFTER THEY ARRIVED IN LOS ANGELES MRS WEINGARTEN'S ATTEMPT TO LINE UP FINANCING TO BUY PILGRIM FELL THROUGH SO HER HUSBAND OFFERED TO DO THE DEAL WITH HER IN 1984 THEY BOUGHT PILGRIM USING A SHELL COMPANY THAT USED TO OWN MR WEINGARTEN'S MAGAZINES THE SHELL COMPANY RENAMED FIRST CAPITAL HOLDINGS ALSO WAS USED TO ACQUIRE TWO LIFE INSURANCE COMPANIES BUT SAYS MRS WEINGARTEN I FOUND IT TOO EMOTIONALLY DIFFICULT TO HAVE MY HUSBAND AS MY BOSS SHE SOON GOT A CHANCE TO BECOME HER OWN BOSS IN 1988 SHEARSON LEHMAN BROTHERS THEN A UNIT OF AMERICAN EXPRESS CO BOUGHT A MAJOR STAKE IN FIRST CAPITAL AS PART OF THE DEAL MRS WEINGARTEN GOT AN OPTION TO BUY PILGRIM WHICH SHE EXERCISED IN 1989 BECOMING MAJORITY OWNER BY THE TIME FIRST CAPITAL'S INSURANCE UNITS WERE SEIZED BY REGULATORS IN EARLY 1991 MR WEINGARTEN HAD BEEN GONE FROM FIRST CAPITAL FOR TWO MONTHS AND MRS WEINGARTEN FOR TWO YEARS THE FIRST CAPITAL SEIZURE WAS PROMPTED BY CONCERNS ABOUT FIRST CAPITAL'S PORTFOLIO WHICH WAS LADEN WITH HIGHYIELD JUNK BONDS MRS WEINGARTEN CONTENDS THE SEIZURE WAS DONE FOR PURELY POLITICAL REASONS IN THE SLEW OF LAWSUITS FILED SINCE THE FIRST CAPITAL SEIZURE MOST OF WHICH DON'T NAME PILGRIM AS A DEFENDANT QUESTIONS HAVE BEEN RAISED ABOUT PILGRIM'S PAST ASSOCIATION WITH FIRST CAPITAL INCLUDING WHETHER MRS WEINGARTEN WAS ALLOWED TO BUY PILGRIM AT A BELOWMARKET PRICE BUT FOR PILGRIM THE BIGGEST STICKING POINT SEEMS TO BE ITS MANAGEMENT OF FIRST CAPITAL'S PENSION PLAN A LAWSUIT FILED IN US DISTRICT COURT IN SOUTHERN CALIFORNIA IN SAN DIEGO ALLEGES THAT PILGRIM CHURNED THE ACCOUNT DURING 1991 AND THAT IT BROKE THE LAW BY INVESTING MORE THAN 10 OF THE PLAN'S ASSETS IN FIRST CAPITAL STOCK THE SUIT SEEKS TO RECOVER SOME 56 MILLION MR COHEN PILGRIM'S GENERAL COUNSEL DENIES THE ACCOUNT WAS CHURNED SAYING THE PORTFOLIO'S STOCKHOLDINGS WERE TURNED OVER THREE TIMES DURING 1991 RATHER THAN THE SEVEN TIMES ALLEGED IN THE LAWSUIT BUT MR COHEN CONCEDES THAT THE PLAN DID BUY MORE THAN 10 OF FIRST CAPITAL'S STOCK THERE WAS A VIOLATION OF THE STATUTE AND THERE WILL BE LIABILITY SAYS MR COHEN HE SAYS THAT SETTLING THE CHARGE WILL COST AROUND 14 MILLION 9310290028 931029 CREDIT MARKETS TREASURY MARKET REBOUNDS FROM EARLY DECLINE HAVING FACTORED IN ECONOMICGROWTH REPORT BY THOMAS D LAURICELLA AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE TREASURY MARKET STAGED AN IMPRESSIVE REBOUND YESTERDAY BATTLING BACK TO POST STRONG GAINS AFTER TAKING IT ON THE CHIN IN EARLY TRADING NEWS OF A STRONGER ECONOMY HELPED TO PUSH PRICES DOWN EARLY IN THE DAY TRADERS TERMED IT A CLASSIC SELL THE RUMOR BUY THE FACT SESSION THE MARKET HAD ANTICIPATED GOOD ECONOMIC NEWS FOR DAYS AND BY THE TIME THE EXPECTATIONS BECAME REALITY MOST OF THE SELLING HAD TAKEN PLACE THE BOND MARKET TYPICALLY REACTS NEGATIVELY TO GOOD ECONOMIC NEWS BECAUSE INVESTORS FEAR THAT RAPID ECONOMIC GROWTH COULD LEAD TO INFLATION WHICH REDUCES THE VALUE OF FIXEDINCOME INVESTMENTS THE BENCHMARK 30YEAR TREASURY BOND FINISHED UP ABOUT 3/4 POINT OR ABOUT 750 FOR A BOND WITH 1000 FACE VALUE TO 104 4/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE DROPPED TO 594 FROM 6 ON WEDNESDAY THE 10YEAR NOTE ROSE 1/2 POINT TO 102 26/32 TO YIELD 536 DOWN FROM 543 TREASURY PRICES DROPPED STRAIGHT OUT OF THE CHUTE YESTERDAY IN RESPONSE TO THE COMMERCE DEPARTMENT'S THIRDQUARTER GROSS DOMESTIC PRODUCT REPORT SHOWING THAT THE NATION'S ECONOMY EXPANDED AT A 28 ANNUAL RATE DURING THE QUARTER GENERALLY IN LINE WITH EXPECTATIONS THE INITIAL RESPONSE TO THE REPORT WAS A SHARP DROP IN PRICES AS TRADERS FOCUSED ON THE ARGUMENT THAT THE DATA SET THE STAGE FOR STRONGER GROWTH AHEAD HOWEVER AFTER THE DATA WERE RELEASED SELLING PROVED TO BE LIMITED THE NUMBER WAS AS BAD FOR THE MARKET AS THE WALL STREET FIRMS HAD EXPECTED BUT THERE WAS NO FOLLOWTHROUGH SELLING SAID DANIEL CALLAHAN MANAGER OF GOVERNMENTSECURITIES TRADING AT PAINEWEBBER INC CUSTOMERS WHO HAD SELLING TO DO HAD ALREADY SOLD THE LACK OF INVESTOR SELLING AFTER THE REPORT LEFT MANY DEALERS HOLDING SHORT POSITIONS THAT HAD BEEN SET UP BOTH BEFORE AND AFTER THE GDP REPORT WAS RELEASED IN A SHORT SALE A TRADER SELLS A BORROWED SECURITY HOPING TO BUY THE ISSUE BACK AT A LOWER PRICE AND POCKET THE DIFFERENCE NOT ONLY DID INVESTORS FAIL TO CONTINUE THEIR SELLING OF THE PAST SEVERAL DAYS SOME TOOK A LOOK AT THE HIGHER YIELDS PRODUCED BY A WEEK OF PRICE DECLINES AND DECIDED THAT THE MARKET WAS ATTRACTIVELY PRICED AGAIN THAT LIGHT RETAIL BIDDING SPARKED A RUSH OF BUYING BY TRADERS AND SPECULATIVE ACCOUNTS AS THEY SCRAMBLED TO CLOSE OUT THEIR SHORT POSITIONS BUYING CONTINUED THROUGH THE END OF TRADING LEAVING THE MARKET TO FINISH AT ITS HIGHS IT WAS JUST A NICE SHORTCOVERING RALLY SAID MR CALLAHAN OF PAINEWEBBER A CATALYST FOR THE BUYING WHICH WAS CONCENTRATED AMONG LONGER MATURITIES WAS A SECOND LOOK AT THE GDP REPORT TRADERS SAID THE MARKET TOOK SOLACE IN THE INFLATION INDICATORS CONTAINED WITHIN THE DATA THE IMPLICIT PRICE DEFLATOR FOR EXAMPLE POSTED JUST A 16 ANNUAL RATE OF INCREASE DURING THE THIRD QUARTER AND THE FIXEDWEIGHT PRICE INDEX ROSE AT JUST A 21 ANNUAL RATE THEY WERE GOOD INFLATION NUMBERS SAID MICKEY LEVY CHIEF FINANCIAL ECONOMIST AT NATIONSBANC CAPITAL MARKETS SEPARATELY THE FED REPORTED LATE YESTERDAY THAT ITS WIDELY WATCHED M2 MEASURE OF MONEY SUPPLY DROPPED 11 BILLION IN THE WEEK ENDED OCT 18 THAT PUTS THE M2 GROWTH RATE AT 13 FROM THE FOURTHQUARTER BASE OF LAST YEAR JUST WITHIN THE FED'S TARGET RANGE OF 1 TO 5 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEYMARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 PRICES OF MOST CORPORATE BONDS FOLLOWED TREASURYS HIGHER YESTERDAY BUT ONE MARKET SECTOR UTILITY DEBT CONTINUED TO BE HIT HARD BY NEWS THAT STANDARD & POOR'S CORP HAD ADOPTED A TOUGHER RATING SYSTEM FOR THE ELECTRICUTILITY INDUSTRY AMONG THE CHANGES ANNOUNCED WEDNESDAY S&P IS TAKING MORE ACCOUNT OF THE IMPACT OF COMPETITION IN ITS ANALYSIS OF FINANCIAL STRENGTH S&P ALSO SAID THE ELECTRICUTILITY INDUSTRY IS IN A LONGTERM DECLINE AND REVISED DOWNWARD ITS LONGTERM OUTLOOK FOR ABOUT 40 COMPANIES YESTERDAY AS UTILITY BOND PRICES PLUMMETED YIELDS ON BETTERRATED ISSUES ROSE ABOUT 005 PERCENTAGE POINT WHILE THE YIELDS FOR LOWERRATED UTILITIES JUMPED 015 TO 020 PERCENTAGE POINT S&P SAID EARLIER THIS MONTH THAT IT EXPECTED TO REVISE ITS RATINGS APPROACH SINCE THAT ANNOUNCEMENT THE PRICES OF BONDS ISSUED BY LONG ISLAND LIGHTING CO HAVE FALLEN SHARPLY ONE TRADER NOTED THE NEW YORK UTILITY'S DEBT IS RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY S&P THE UTILITY'S 7 1/8 COUPON NOTES MATURING IN 2005 HAVE DROPPED MORE THAN 3 1/2 POINTS OR MORE THAN 35 FOR A BOND WITH 1000 FACE VALUE TO 101 1/8 FOR A YIELD OF 7 COMPARED WITH 651 TWO WEEKS AGO SAID ONE TRADER MOST OF THE PRICE DROP HAS OCCURRED SINCE WEDNESDAY ALSO HIT HARD WERE WESTINGHOUSE ELECTRIC CORP BONDS WHICH MOODY'S PLACED ON REVIEW FOR A POSSIBLE DOWNGRADE THE YIELD FOR THE COMPANY'S 8 5/8 COUPON BOND MATURING IN 2012 ROSE TO 815 FROM 795 ON WEDNESDAY THE COMPANY'S DEBT IS CURRENTLY RATED BAA3 BY MOODY'S AND TRIPLEB BY S&P A CREDIT RATING DOWNGRADE COULD PUT THE COMPANY'S BOND IN JUNKBOND TERRITORY PLENTY OF MUNICIPALBOND BUYERS WERE ON HAND FOR THE NEW YORK TRIBOROUGH BRIDGE & TUNNEL AUTHORITY'S OFFER OF REFUNDING BONDS YESTERDAY FOLLOWING THE REPRICING YIELDS RANGED FROM 300 IN 1995 TO 555 FOR ZEROCOUPON BONDS DUE IN 2021 AND 2022 OTHER NEW ISSUES INCLUDED NASSAU COUNTY NY'S 1017 MILLION OF BONDS WHICH WERE WON BY A ROOSEVELT & CROSS INC GROUP THE 892 MILLION SERIES N UNLIMITEDTAX BONDS FOR GENERAL IMPROVEMENT WERE WON WITH A BID SETTING THE NET INTEREST COST AT 49856 THE 125 MILLION SERIES P UNLIMITEDTAX COMBINED SEWER DISTRICT BONDS WERE WON WITH A BID SETTING THE NET INTEREST COST AT 51275 BOTH ARE PRICED TO YIELD FROM 330 IN 1995 TO 520 IN 2012 AND 2013 MEANWHILE A CS FIRST BOSTON GROUP WON THE VIRGINIA HOUSING DEVELOPMENT AUTHORITY'S 1632 MILLION OF COMMONWEALTH MORTGAGE BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 2777 MORTGAGEBACKED SECURITIES COULDN'T KEEP UP WITH TREASURYS YESTERDAY AND GAVE UP A LITTLE GROUND NEAR THE DAY'S END THE TREASURY MARKET'S SURGE TOOK THE STRENGTH OUT OF THE MORTGAGE MARKET WHERE SECURITIES HAD STEADILY GAINED IN VALUE OVER THE PAST SEVERAL SESSIONS MORTGAGES HAD BEEN IMPROVING ON THE BELIEF THAT THE TREASURY RALLY WAS OVER AND THAT THE MORTGAGE REFINANCING BOOM WOULD END WITH IT BUT YESTERDAY'S SESSION GAVE INVESTORS LITTLE REASON FOR COMFORT AS A RESULT PRICES OF CURRENT COUPONS GAINED ONLY 1/8 TO 1/4 COMPARED WITH A 1/2 POINT GAIN IN THE TREASURY'S 10YEAR NOTE THE 10YEAR NOTE IS USED AS A BENCHMARK FOR PRICING 30YEAR MORTGAGES GINNIE MAE 6 SECURITIES FOR NOVEMBER DELIVERY ROSE 5/32 TO 98 28/32 FREDDIE MAC GOLD 6 ISSUES ROSE 1/8 TO 98 18/32 AND FANNIE MAE 6 SECURITIES ROSE 1/8 TO 98 11/15 SECURITIES BACKED BY 65 COUPONS FOR NOVEMBER DELIVERY GAINED FROM 5/32 TO 7/32 IN THE PRIMARY MARKET THE FEDERAL NATIONAL MORTGAGE ASSOCIATION ANNOUNCED FOUR REAL ESTATE MORTGAGE INVESTMENT CONDUITS TOTALING 13 BILLION TWO OF THE ISSUES WERE BACKED BY 30YEAR GOVERNMENT NATIONAL MORTGAGE ASSOCIATION SECURITIES WITH 65 COUPONS THE ASSETBACKED SECURITIES MARKET MEANWHILE IS SEEING THE FIRST SIGNS OF MEANINGFUL SECONDARY TRADING ACTIVITY IN SEVERAL MONTHS ACCORDING TO ONE TRADER INVESTORS ARE FINALLY COMING TO TERMS WITH THE LOFTY PRICE LEVELS OF THESE SECURITIES 9310290027 931029 TAIWAN IS MOVING TO BROADEN ACCESS OF FOREIGNERS TO COUNTRY'S STOCK MARKET BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN'S FINANCIAL AUTHORITIES ARE SLOWLY DISMANTLING CONTROLS OVER CAPITAL FLOWS IN A SERIES OF MOVES THAT WILL BROADEN FOREIGN ACCESS TO TAIWAN'S STOCK MARKET AND ALLOW MORE LOCAL COMPANIES TO RAISE FUNDS OVERSEAS IN THE MOST SIGNIFICANT OF SEVERAL RECENT STEPS THE GOVERNMENT HAS GIVEN LOCAL BUSINESSES THE GREEN LIGHT TO REPATRIATE FUNDS RAISED ABROAD FROM ISSUES OF STOCK AND CONVERTIBLE BONDS IN ADDITION FOREIGN INSTITUTIONAL INVESTORS SOON WILL BE ALLOWED TO DOUBLE TO 200 MILLION THE MAXIMUM AMOUNT THEY CAN INVEST IN TAIWAN THESE INITIATIVES WHILE REFLECTING THE CENTRAL BANK'S CAUTIOUS APPROACH TO ANY LIBERALIZATION THAT REDUCES ITS CONTROL OVER TAIWAN'S CURRENCY GENERALLY HAVE BEEN WELLRECEIVED BY BROKERS AND INVESTMENT BANKERS ALTHOUGH MANY FOREIGNERS WANT THE GOVERNMENT TO OPEN TAIWAN'S FINANCIAL MARKETS MORE RAPIDLY THE RECENT MEASURES OFFER SOME REASSURANCE THAT THE CENTRAL BANK IS COMMITTED TO LOOSENING THE REINS ON ONE OF ASIA'S MOST TIGHTLY CONTROLLED FINANCIAL SYSTEMS I KNOW MANY PEOPLE TEND TO LOOK AT THE CENTRAL BANK AS THE BAD GUYS SAYS BILL MCGRATH TAIWAN COUNTRY MANAGER AT SG WARBURG SECURITIES TAIWAN LTD BUT MY IMPRESSION IS THAT THE CENTRAL BANK IS GETTING VERY FLEXIBLE AND PROFOREIGN INVESTMENT THEY SEE THE PROBLEM OF CAPITAL FLOWS IN TERMS OF THE LONGTERM VIABILITY OF THE STOCK MARKET THEY RECOGNIZE IT IS A GOOD THING TO HAVE FOREIGN INVESTMENT HERE ANALYSTS SAY A KEY REASON FOR THE RECENT LOOSENING IS THE MONETARY AUTHORITIES' PERCEPTION THAT TAIWAN'S BALANCE OF PAYMENTS CAN BENEFIT FROM GREATER FLOWS OF CAPITAL INTO THE COUNTRY THREE YEARS AGO WHEN MARKETOPENING MEASURES WERE LAUNCHED THE CENTRAL BANK'S CHIEF CONCERN WAS TO PREVENT A FLOOD OF SPECULATIVE CAPITAL FROM ENTERING THE COUNTRY AND FORCING A RAPID APPRECIATION OF THE NEW TAIWAN DOLLAR BUT IN THE PAST YEAR CAPITAL OUTFLOW TO CHINA AND BOOMING GLOBAL STOCK MARKETS HAS BECOME THE CENTRAL BANK'S PREOCCUPATION AND INVESTMENTS IN TAIWAN ARE VIEWED MORE POSITIVELY MANY ECONOMISTS SAY TAIWAN COULD POST A BALANCEOFPAYMENTS DEFICIT THIS YEAR BECAUSE OF THE CAPITAL OUTFLOW THE CENTRAL BANK IS CONVINCED RIGHT NOW THAT CAPITAL OUTFLOW HAS BEEN GOING ON FOR A WHILE AND THEY WON'T SEE A SPECULATIVE INFLOW AN INVESTMENT BANKER SAYS THAT WILL MAKE THEM MORE RELAXED THE RECENT POLICY MEASURE THAT LIKELY WILL HAVE THE GREATEST IMMEDIATE IMPACT AFFECTS LOCAL COMPANIES THAT WISH TO RAISE FUNDS OUTSIDE TAIWAN IN RECENT YEARS A HANDFUL OF COMPANIES HAVE BEEN PERMITTED TO ISSUE CONVERTIBLE BONDS AND GLOBAL DEPOSITARY RECEIPTS OVERSEAS BUT IN USING THE PROCEEDS THEY HAVE BEEN CONFINED TO TRANSACTIONS IN FOREIGN CURRENCIES TWO WEEKS AGO THE CENTRAL BANK ANNOUNCED THAT TAIWANESE COMPANIES WILL BE ALLOWED TO RAISE A TOTAL OF 3 BILLION IN WORLD FINANCIAL MARKETS AND BRING THE PROCEEDS BACK TO TAIWAN TO EXPAND THEIR MANUFACTURING CAPACITY OR TO INVEST IN INFRASTRUCTURE PROJECTS INTERESTED COMPANIES WILL HAVE TO SUBMIT THEIR PLANS TO TAIWAN'S SECURITIES AND EXCHANGE COMMISSION AND THE CENTRAL BANK FOR APPROVAL THE INITIATIVE HAS BEEN WELCOMED BY LOCAL FIRMS MANY OF WHICH ARE SCOUTING FOR NEW SOURCES OF FUNDING FOR CAPITAL EXPENDITURES INVESTMENT BANKERS SAY SOME OF THESE COMPANIES ALREADY HAVE APPROACHED THEM TO DISCUSS FOREIGN BOND AND STOCK ISSUES UNDER THE NEW GUIDELINES INVESTMENT BANKERS SAY TAIWANESE COMPANIES THAT TAP OVERSEAS MARKETS SHOULD MEET WITH A POSITIVE RECEPTION GIVEN THE FLOOD OF US MONEY THAT HAS BEEN WASHING INTO ASIAN STOCK MARKETS IN RECENT MONTHS INVESTMENT BANKERS DECLINE TO DISCUSS SPECIFIC FUNDRAISING PLANS BUT MARKET OBSERVERS SAY FORMOSA PLASTICS CORP TAIWAN'S LARGEST MANUFACTURER IS WIDELY EXPECTED TO SEEK TO RAISE MONEY ABROAD TO HELP FINANCE A 7 BILLION NAPHTHA CRACKER IT IS BUILDING IN SOUTHERN TAIWAN FUNDING PLANS FOR THE PROJECT KNOWN AS THE SIXTH CRACKER CURRENTLY CENTER ON LOANS TO BE PROVIDED AT PREFERENTIAL RATES BY A BANKING CONSORTIUM LED BY GOVERNMENTOWNED CHIAO TUNG BANK BUT INVESTMENT BANKERS EXPECT FORMOSA PLASTICS' CHAIRMAN YC WANG TO TRY TO TAKE ADVANTAGE OF THE NEWLY OPENED AVENUE TO FOREIGN CAPITAL MARKETS ANOTHER COMPANY THAT INVESTMENT BANKERS CONSIDER A LIKELY PROSPECT TO GO ABROAD IS YIEH LOONG GROUP A KAOHSIUNG STEELMAKER THAT HAS PLANS TO BUILD A MULTIBILLIONDOLLAR STEEL COMPLEX RECENT POLICY MEASURES AFFECTING FOREIGN INVESTMENT IN TAIWAN'S STOCK MARKET SO FAR HAVE BEEN MORE INCREMENTAL AND PROVIDE LESS SCOPE FOR SIGNIFICANT CHANGES IN CAPITAL FLOWS INTO THE COUNTRY BUT MANY ANALYSTS STILL REGARD THEM AS POSITIVE MOVES TAIWAN FIRST OPENED ITS FINANCIAL MARKETS TO DIRECT INVESTMENT BY FOREIGN INSTITUTIONS IN EARLY 1991 PERMITTING A TOTAL OF 25 BILLION INTO THE MARKET THESE INSTITUTIONS HAVE BEEN LIMITED TO TOTAL INVESTMENTS OF 100 MILLION EACH AND THEY HAVE FACED A COMPLICATED APPLICATION PROCESS IN ADDITION THE CENTRAL BANK IMPOSED TOUGH CONDITIONS ON THE FLOW OF APPROVED INVESTMENT CAPITAL INTO TAIWAN AND THE REPATRIATION OF CAPITAL GAINS OUT OF THE COUNTRY THE PROCEDURES HAVE SCARED SOME INVESTORS AWAY AND PREVENTED MANY US INSTITUTIONS FROM EVEN CONSIDERING TAIWAN INVESTMENTS BECAUSE THEIR TRUST AGREEMENTS BAR THEM FROM MARKETS WHERE THEIR CAPITAL FACES SUCH LIMITATIONS THE SEC AND CENTRAL BANK IN AUGUST DOUBLED THE CEILING ON TOTAL FOREIGN INVESTMENT IN THE MARKET TO 5 BILLION BECAUSE APPROVED INVESTMENTS WERE NEARING THE ORIGINAL LIMIT NOW THE AUTHORITIES ARE IN THE FINAL STAGES OF APPROVING AN INCREASE IN THE CEILING ON INDIVIDUAL INSTITUTIONS' INVESTMENTS TO 200 MILLION THE AUTHORITIES ALSO ARE MOVING TO LOOSEN RESTRICTIONS ON REMITTANCES OF CAPITAL GAINS IN ANOTHER MOVE THAT WILL BE VIEWED FAVORABLY BY FOREIGN INVESTORS THE SEC APPROVED A PRELIMINARY PROPOSAL TO LIFT THE LIMITS ON FOREIGN INVESTMENTS IN INDIVIDUAL STOCKS UNDER CURRENT REGULATIONS A SINGLE FOREIGN INVESTOR IS LIMITED TO HOLDING A MAXIMUM OF 5 OF A COMPANY'S STOCK AND ALL FOREIGN HOLDINGS ACQUIRED THROUGH THE STOCK MARKET CAN'T EXCEED 10 OF THE COMPANY'S ISSUED SHARES THE PROPOSAL STILL MUST BE DISCUSSED WITH THE MINISTRY OF FINANCE BROKERS SAY THE IMPACT OF THE MOVE WOULD COME LATER BECAUSE ONLY A HANDFUL OF TAIWANESE STOCKS ARE ALREADY INVESTED TO THE LIMIT BY FOREIGNERS NOT ALL ANALYSTS ARE PLEASED WITH THE CURRENT PACE OF REFORM PARTICULARLY IN AREAS AFFECTING THE INFLOW OF FOREIGN INVESTMENT UNFORTUNATELY NONE OF THE STEPS THEY'VE TAKEN IS A BREAKTHROUGH MOVE SAYS JONATHAN M ROSS TAIWAN COUNTRY MANAGER FOR HG ASIA SECURITIES TAIWAN LTD THEY ALL DANCE AROUND THE CRUCIAL ISSUE WHICH IS REMOVING FOREIGNEXCHANGE CONTROLS ALL THIS SO FAR IS NOT ENOUGH 9310290026 931029 LEGAL BEAT SUITS AGAINST PHARMACISTS ARE ON THE RISE BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL IF A PATIENT ACCIDENTALLY TAKES AN OVERDOSE OF A PRESCRIBED DRUG THE PHARMACIST MAY BE LIABLE FOR DAMAGES AND PHARMACISTS IN SOME STATES NOW CAN BE SUED IF THEY FAIL TO REALIZE THAT A NEW DRUG MIGHT INTERACT BADLY WITH OTHER MEDICATIONS OR IF THEY FAIL TO CATCH A PHYSICIAN'S MISTAKE RECENT COURT RULINGS LIKE THESE COINCIDING WITH THE EXPLOSIVE GROWTH OF DRUGSTORE CHAINS WITH DEEP POCKETS ARE TURNING PHARMACISTS INTO A GROWTH AREA FOR PLAINTIFFS' LAWYERS CLAIMS AGAINST PHARMACISTS ROSE 22 FROM 1987 TO 1990 ACCORDING TO DATA FROM CHICAGO INSURANCE CO A UNIT OF FIREMAN'S FUND CORP AND A MAJOR INSURER OF PHARMACISTS AND THREE TIMES SINCE 1991 IT HAS PAID 1 MILLION ON A PHARMACISTLIABILITY CLAIM A DAMAGE THRESHOLD IT HADN'T REACHED ONCE IN THE TWO PREVIOUS DECADES THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA IN WASHINGTON DC LAST SUMMER RECOGNIZED AS A SPECIALTY THE FILING OF PERSONALINJURY LAWSUITS AGAINST PHARMACISTS THIS IS NOT A PARTICULARLY NEW AREA OF LAW BUT IT HAS BECOME MORE VOLUMINOUS SAID GROUP COCHAIRMAN S CRAIG SMITH OF DALLAS WHO HAS FILED AT LEAST EIGHT SUCH CASES IN THE PAST YEAR PHARMACISTS TRADITIONALLY HAVE BEEN SEEN BY COURTS AS MERE DISPENSERS OF MEDICINE PEOPLE WHO COUNT N' POUR IN THE INDUSTRY'S LINGO IF THEY DID SO CORRECTLY THEY FULFILLED THEIR DUTY EVEN UNDER THAT RULE MR GOWER THE NEGLIGENT APOTHECARY IN THE MOVIE IT'S A WONDERFUL LIFE COULD HAVE BEEN HELD LIABLE IF YOUNG GEORGE BAILEY HADN'T STOPPED HIM FROM DISPENSING THE WRONG DRUG TO A SICK CHILD THE GENERALLY HIGH WALL AGAINST LIABILITY BEGAN TO ERODE IN 1986 WHEN A PENNSYLVANIA APPEALS COURT UPHELD A SIXFIGURE JURY VERDICT AGAINST A PHARMACY FOR FILLING A MIGRAINEDRUG PRESCRIPTION WITHOUT INSTRUCTING THE PATIENT OF THE MAXIMUM SAFE DOSAGE THE DOCTOR ALSO HAD FAILED TO DO SO PROPERLY THE PATIENT TOOK SEVERAL TIMES THE MAXIMUM DOSE RESULTING IN PERMANENT NERVE DAMAGE THE PHARMACY ARGUED THAT ITS ONLY DUTY WAS TO SUPPLY THE MEDICINE BUT THE COURT DISAGREED A REASONABLY PRUDENT PHARMACIST WOULD HAVE TAKEN STEPS TO CORRECT THE ERROR OF THE PRESCRIBING PHYSICIAN THE COURT SAID THE DRUGGIST WOULD SEEM TO ARGUE THAT A PHARMACY IS NO MORE THAN A WAREHOUSE FOR DRUGS AND THAT A PHARMACIST HAS NO MORE RESPONSIBILITY THAN A SHIPPING CLERK WHO MUST DUTIFULLY AND UNQUESTIONINGLY OBEY THE WRITTEN ORDERS OF OMNISCIENT PHYSICIANS SUCH IS NOT THE CASE IN 1990 A GROUNDBREAKING TENNESSEE CASE ESTABLISHED THAT THE STATE'S PHARMACISTS COULD BE LIABLE FOR FAILING TO SPOT HARMFUL DRUG INTERACTIONS BOTH THE TENNESSEE AND PENNSYLVANIA RULINGS HAVE PROMPTED SIMILAR SUITS NATIONWIDE IN THE TENNESSEE CASE A BOY RECEIVING AN ASTHMA DRUG WAS PRESCRIBED ERYTHROMYCIN FOR AN INFECTION THE PACKAGE INSERT FOR THE ANTIBIOTIC WARNED IT COULD BE TOXIC IF COMBINED WITH THE ASTHMA MEDICATION REVCO DS INC WHICH FILLED BOTH PRESCRIPTIONS DIDN'T WARN THE BOY'S FAMILY NOR ASK THE DOCTOR WHETHER THE PRESCRIPTION SHOULD BE CHANGED THE BOY SUFFERED BRAIN DAMAGE REVCO BASED IN TWINSBURG OHIO ARGUED IT HAD NO DUTY TO WARN OF A POTENTIAL INTERACTION AND A LOWER COURT AGREED BUT A STATE APPEALS COURT REVERSED AND RETURNED THE CASE TO A LOWER COURT FOR TRIAL GIVEN THE PHARMACEUTICAL INDUSTRY'S STANDARD OF CARE A WARNING MAY HAVE BEEN REQUIRED UNDER THE CIRCUMSTANCES THE COURT SAID THE CASE WAS SETTLED FOR AN UNDISCLOSED AMOUNT BEFORE GOING TO TRIAL AND BEFORE THE QUESTION COULD BE DECIDED REVCO DECLINED TO COMMENT ADDING IMPETUS TO THE LITIGATION TREND IS THE RISE OF CHAIN PHARMACIES PLAINTIFFS' LAWYERS CONTEND THAT PHARMACISTS AT RETAIL CHAINS HAVE TOO MANY PRESCRIPTIONS TO FILL AND SO BUNGLE SOME IN A CASE OF DALLAS ATTORNEY SMITH'S FOR EXAMPLE AN ECKERD CORP PHARMACIST ALLEGEDLY FILLED A PRESCRIPTION FOR DARVOCET A PAINKILLER WITH DIABINESE A BLOODSUGAR MEDICATION FOR DIABETICS THE PATIENT FELL INTO A HYPOGLYCEMIC COMA THE CASE WAS SETTLED IN 1992 FOR 6 MILLION ECKERD BASED IN LARGO FLA HAD NO COMMENT DEFENSE LAWYERS COUNTER THAT THE CHAINS ARE SEEN BY PLAINTIFFS' ATTORNEYS AS DEEPPOCKETED AND THAT MANY SUITS ARE FRIVOLOUS MICHAEL LOPS DIRECTOR OF RISK MANAGEMENT FOR ECKERD CITES A SUIT RECENTLY BROUGHT BY A MAN WHOSE ANTIDEPRESSANT PRESCRIPTION WAS FILLED CORRECTLY BECAUSE OF THE ANTIDEPRESSANT THE MAN ALLEGES HE FORGOT TO TAKE MONEY OUT OF THE STOCK MARKET AND LOST A BUNDLE THEN THERE WAS THE CASE SEVERAL YEARS AGO IN WHICH AN ECKERD CLERK CALLED OUT A NAME THAT WAS LISTED ON A NEWLY FILLED PRESCRIPTION ANOTHER CUSTOMER CLAIMED THE MEDICINE AND THEN SUED THE CHAIN BECAUSE HE HAD BEEN GIVEN THE WRONG DRUG AND THE NAME THAT WAS CALLED WAS NOTHING CLOSE MR LOPS FUMED THE INCREASE IN LAWSUITS ALSO MAY BE RELATED AT LEAST IN FLORIDA TO A 1986 STATE LAW THAT PERMITS PHARMACISTS TO DISPENSE DRUGS WITHOUT A PRESCRIPTION A PRACTICE THAT COULD SPREAD AS PART OF HEALTHCARE REFORM THE NUMBER OF PHARMACISTLIABILITY SUITS IN FLORIDA IS AMONG THE NATION'S HIGHEST ACCORDING TO CHICAGO INSURANCE ALSO A FACTOR IS A 1990 FEDERAL LAW LAYING OUT PHARMACISTS' RESPONSIBILITY TO GIVE MANY CONSUMERS DETAILED ADVICE ABOUT MEDICATIONS SOME PHARMACISTS SAY THE LAWSUITS ARE A NATURAL RESULT OF THEIR PROFESSION'S DRIVE FOR GREATER RECOGNITION FOR EXAMPLE PHARMACISTS RECENTLY HAVE BEEN TRYING TO CHANGE LAWS TO ALLOW THEM TO DIAGNOSE PATIENTS AND GIVE SOME ADVICE WE'VE BEEN VERY UNDERUTILIZED AS HEALTH PROFESSIONALS REALLY SAID SUZETTE D RIPEPE A HOSPITAL PHARMACIST IN GROSSE POINTE MICH AND AN ATTORNEY WHO IS COCHAIRWOMAN OF THE TRIAL LAWYERS' PHARMACYLIABILITY GROUP WE REALLY HAVE A SUPERIOR KNOWLEDGE OF DRUGS I THINK A LOT OF PHARMACISTS ARE PANICKING AND THEY'RE GETTING FRIGHTENED OFF AND THEY REALLY SHOULDN'T BE BECAUSE I THINK THIS IS A GREAT OPPORTUNITY FOR US AN ANIMAL DOESN'T HAVE STANDING TO BRING A LAWSUIT A FEDERAL COURT IN BOSTON RULED JUDGE MARK L WOLF DISMISSED BEFORE TRIAL A LAWSUIT THAT ANIMALRIGHTS GROUPS BROUGHT IN THE NAME OF A BOTTLENOSE DOLPHIN THE LAW SPECIFICALLY STATES THAT A PERSON CAN BRING LAWSUITS THE JUDGE SAID THE RULING IS AMONG THE FIRST TO ADDRESS THE QUESTION OF AN ANIMAL'S STANDING IN COURT IF CONGRESS AND THE PRESIDENT INTENDED TO TAKE THE EXTRAORDINARY STEP OF AUTHORIZING ANIMALS AS WELL AS PEOPLE AND LEGAL ENTITIES TO SUE THEY COULD AND SHOULD HAVE SAID SO PLAINLY THE JUDGE SAID NOTING THAT IN 1991 A FEDERAL COURT IN HAWAII RULED AS HE DID JUDGE WOLF ADDED THAT UNDER MASSACHUSETTS LAW ANIMALS ARE THE PROPERTY OF THEIR OWNERS AND HAVE NO LEGAL RIGHTS THE ANIMALRIGHTS GROUPS HAD ARGUED THAT THE DOLPHIN'S AQUARIUM SHOULD HAVE SOUGHT A PERMIT AND PUBLISHED ITS REQUEST IN THE FEDERAL REGISTER BEFORE TRANSFERRING THE DOLPHIN TO HAWAII THE NEW ENGLAND AQUARIUM RESPONDED THAT BECAUSE KAMA WAS BORN IN CAPTIVITY NO PERMIT IS REQUIRED UNDER FEDERAL LAW ALTHOUGH CASES HAVE PROCEEDED WITH ENTIRE SPECIES NAMED AS PLAINTIFFS IN THOSE INSTANCES NOBODY CHALLENGED THE STANDING OF THE RED SQUIRREL SPOTTED OWL AND PALILA AN ENDANGERED BIRD THE ANIMALRIGHTS GROUPS RELIED ON A 1988 CASE IN WHICH A FEDERAL APPEALS COURT DECLARED THAT THE PALILA HAD LEGAL STATUS IN ADDITION A FEDERAL COURT IN CALIFORNIA RECENTLY SAID IN A FOOTNOTE THAT AN ENDANGERED SPECIES HAD STANDING SAID CHRISTOPHER D STONE A LAW PROFESSOR AT THE UNIVERSITY OF SOUTHERN CALIFORNIA AND AUTHOR THE AQUARIUM PLANS TO PURSUE A STATECOURT DEFAMATION SUIT AGAINST CITIZENS TO END ANIMAL SUFFERING AND EXPLOITATION AND THE ANIMAL LEGAL DEFENSE FUND A BOSTON ATTORNEY FOR THE ANIMAL RIGHTS GROUPS STEVEN M WISE SAID NO DEFAMATION OCCURRED WHO'S NEWS MARK LEVY FORMERLY A PARTNER AT CHICAGO LAW FIRM MAYER BROWN & PLATT HAS BEEN NAMED DEPUTY ASSISTANT ATTORNEY GENERAL FOR CIVIL APPELLATE MATTERS HE IS HELPING DEVISE THE CLINTON ADMINISTRATION'S LEGAL STRATEGY ON SUCH ISSUES AS THE PENTAGON'S POLICY ON HOMOSEXUALS DURING A PREVIOUS JUSTICE DEPARTMENT STINT MR LEVY WORKED ON SUPREME COURT CASES IN THE SOLICITOR GENERAL'S OFFICE 9310290025 931029 STATION CASINOS ORDERS RIVERBOAT LAS VEGAS STATION CASINOS INC SAID IT AGREED TO PURCHASE A NEW 2500PASSENGER RIVERBOAT FROM KEHL RIVER BOATS INC FOR 137 MILLION DESIGNED TO RESEMBLE A TURNOFTHECENTURY PADDLEWHEEL RIVERBOAT THE VESSEL IS SET FOR COMPLETION IN APRIL THE GAMBLING CONCERN SAID 9310290024 931029 FERRANTI CONFIRMS TAKEOVER OFFER BY UK'S GEC SPECIAL TO THE WALL STREET JOURNAL LONDON FERRANTI INTERNATIONAL PLC OF BRITAIN CONFIRMED THAT DEFENSE AND ELECTRONICS GROUP GENERAL ELECTRIC CO ALSO OF BRITAIN HAS OFFERED TO BUY THE COMPANY IN A FRIENDLY TAKEOVER VALUED AT A TOKEN 101 MILLION 15 MILLION ADDITIONALLY GEC WILL ASSUME ABOUT 140 MILLION OF FERRANTI DEBT FERRANTI DISCLOSED THIS WEEK THAT IT WAS IN TALKS THAT COULD LEAD TO AN OFFER FOR THE COMPANY OF A TOKEN ONE PENNY A SHARE FERRANTI DIDN'T NAME THE BIDDER AT THAT TIME FERRANTI SAID IT WAS RECOMMENDING THE OFFER TO SHAREHOLDERS ADDING THAT THE ONLY OTHER ALTERNATIVE WAS RECEIVERSHIP THE OFFER IS FINAL AND THEREFORE WON'T BE INCREASED THE SALE IS CONDITIONAL ON SHAREHOLDER APPROVAL AND A DUE DILIGENCE STUDY BY GEC GEC'S OFFER ALSO IS CONDITIONAL ON REACHING AGREEMENTS WITH FERRANTI'S BANKS TO RESTRUCTURE ITS DEBT BARING BROTHERS & CO HAS ADVISED FERRANTI THAT ITS BANKERS ARE LIKELY TO AGREE TO AMEND THE COMPANY'S LOANS IF GEC BUYS THE COMPANY FERRANTI ALSO A DEFENSE AND ELECTRONICS COMPANY HAS BEEN STRUGGLING TO SURVIVE SINCE A MAJOR FRAUD WAS DISCOVERED FOLLOWING ITS 1987 ACQUISITION OF INTERNATIONAL SIGNAL & CONTROL GROUP PLC FERRANTI DISCOVERED FRAUDULENT CONTRACTS IN A UNIT OF THE COMPANY AFTER THE ACQUISITION FERRANTI SAID THE MERGER WILL STRENGTHEN THE DEFENSE BUSINESSES OF BOTH IT AND GEC BETTER PLACING THE BUSINESSES TO WIN DEFENSE CONTRACTS IN THE UK AND OVERSEAS GEC IS NOT RELATED TO GENERAL ELECTRIC CO OF THE US AS OF MARCH 31 FERRANTI'S CONSOLIDATED NET ASSETS WERE 545 MILLION IN THE YEAR TO MARCH 31 FERRANTI HAD A PRETAX LOSS OF 396 MILLION COMPARED WITH A LOSS OF 981 MILLION A YEAR EARLIER ACCORDING TO ITS ANNUAL REPORT 9310290023 931029 TECHNICAL BRIEF AMERICA ONLINE INC NET INCOME DROPPED 67 IN FIRM'S FISCAL 1ST PERIOD AMERICA ONLINE INC A PROVIDER OF ONLINE COMPUTER SERVICES SAID REVENUE DOUBLED IN THE FISCAL FIRST QUARTER NET INCOME DECLINED 67 DUE TO AN EXTRAORDINARY ITEM LAST YEAR THE VIENNA VA COMPANY SAID NET INCOME FOR THE THREE MONTHS ENDED SEPT 30 WAS 1 MILLION OR 14 CENTS A SHARE A YEAR EARLIER NET INCOME OF 11 MILLION OR 17 CENTS A SHARE INCLUDED A 407000 TAX BENEFIT EQUAL TO SIX CENTS A SHARE REVENUE ROSE TO 159 MILLION FROM 78 MILLION AMERICA ONLINE SAID ITS NUMBER OF SUBSCRIBERS ROSE 99 TO 387000 AS OF SEPT 30 9310290022 931029 TORAY IS BUILDING LCD FACTORY TOKYO TORAY INDUSTRIES INC A LEADING MAKER OF SYNTHETIC FIBERS IN JAPAN ANNOUNCED THAT IT HAS BEGUN CONSTRUCTION OF A FACTORY TO MAKE COLOR FILTERS FOR LIQUID CRYSTAL DISPLAYS TORAY SAID IT ALREADY HAS INCREASED PRODUCTION CAPACITY AT AN EXISTING FACTORY FOR THE UNITS WHICH ARE HIGHLY TRANSPARENT HIGHSPEEDRESPONSE TYPES USED IN THINFILMTRANSISTOR LCDS THE COMPANY SAID THE NEW FACTORY MOVE COMES IN RESPONSE TO GROWING DEMAND FOR LAPTOP AND NOTEBOOKSTYLE PERSONAL COMPUTERS 9310290021 931029 HEINZ GRANT TO SYMPHONY PITTSBURGH THE PITTSBURGH SYMPHONY SOCIETY SAID IT RECEIVED A 20 MILLION CHALLENGE GRANT FROM THE HOWARD HEINZ AND VIRA I HEINZ ENDOWMENTS THE HEINZ FAMILY IS RELATED TO THE FOUNDERS OF HJ HEINZ CO A FOOD MANUFACTURER ACCORDING TO THE AMERICAN SYMPHONY ORCHESTRA LEAGUE IT IS THE LARGEST SINGLE ENDOWMENT GIFT EVER AWARDED TO A SYMPHONY ORCHESTRA THE GRANT IS THE LEAD PLEDGE FOR THE PITTSBURGH SYMPHONY'S 70 MILLION CAPITAL CAMPAIGN 9310290020 931029 TECHNOLOGY BT AND OLIVETTI TO SELL UPGRADE KIT ENABLING PC TO TRANSMIT VIDEO LONDON EXPANDING THEIR PARTNERSHIP IN MULTIMEDIA PRODUCTS BRITISH TELECOMMUNICATIONS PLC AND ITALY'S ING C OLIVETTI & CO ANNOUNCED PLANS TO SELL KITS TO TURN A PERSONAL COMPUTER INTO A VIDEOCONFERENCE SYSTEM THE BTOLIVETTI PRODUCT TO GO ON SALE IN BRITAIN EARLY NEXT YEAR FOR ABOUT 3600 5330 AND IN THE US NEXT MARCH OR APRIL AT AN UNDETERMINED PRICE IS THE FIRST EUROPEAN ENTRANT IN A RAPIDLY GROWING FIELD OF PC UPGRADE KITS FOR VIDEO CONFERENCING LIKE THOSE ANNOUNCED RECENTLY BY PICTURETEL CORP AMERICAN TELEPHONE & TELEGRAPH CORP AND COMPRESSION LABORATORIES INC THE BTOLIVETTI KIT INCLUDES A SMALL VIDEO CAMERA THAT SITS ON TOP OF THE PC A PRINTED CIRCUIT BOARD THAT IS INSERTED INTO A SLOT INSIDE THE PC AND SOFTWARE TO MAKE IT ALL WORK WITH THE SYSTEM ANY IBMCOMPATIBLE PCS CAN SEND AND RECEIVE LIVE VIDEO IMAGES OF THE PERSON SITTING AT THE KEYBOARD PLUS TRANSMIT STILL PHOTOS SOUND OR JUST NORMAL COMPUTER DATA HOW QUICKLY THE MARKET FOR DESKTOP VIDEOCONFERENCING EQUIPMENT WILL GROW AROUND THE WORLD ISN'T YET CLEAR THOUGH BT CITED FORECASTS OF AN 11 BILLION VIDEOCONFERENCE MARKET BY 1997 ONE PROBLEM WITH MOST OF THESE SYSTEMS IS THAT TO GET GOODQUALITY VIDEO PICTURES THEY REQUIRE EITHER SPECIAL HIGHSPEED PHONE LINES OR STANDARD LINES USING INTEGRATED SYSTEMS DIGITAL NETWORK TECHNOLOGY ISDN MUCHPROMOTED BY EUROPEAN TELEPHONE COMPANIES SQUEEZES VIDEO AND OTHER DATA DOWN STANDARD COPPER TELEPHONE WIRES SO FAR ISDN SERVICES RUN ON ABOUT 25 OF WESTERN EUROPEAN BUSINESS TELEPHONE LINES AND LESS THAN 1 OF US PHONE LINES 9310290019 931029 HARVARD WEIGHS ONEYEAR VERSION OF MBA PROGRAM BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL HARVARD BUSINESS SCHOOL IS CONSIDERING OFFERING A ONEYEAR VERSION OF ITS RENOWNED MBA PROGRAM A MOVE THAT COULD AFFECT MANAGEMENT EDUCATION NATIONWIDE WHILE A DECISION HASN'T BEEN MADE THE OPTION OF A ONEYEAR MASTER'S DEGREE IN BUSINESS ADMINISTRATION HAS SURFACED IN A MAJOR INTERNAL REVIEW OF THE TWOYEAR MBA PROGRAM ACCORDING TO SEVERAL HARVARD FACULTY MEMBERS OFFICIALS AND OTHERS FAMILIAR WITH THE SCHOOL THOUGH THE SCHOOL'S TWOYEAR PROGRAM WILL CHANGE SIGNIFICANTLY AS A RESULT OF THE REVIEW AND REGARDLESS OF THE ONEYEAR MBA'S FATE IT WON'T BE ELIMINATED IF A ONEYEAR VERSION IS ESTABLISHED THESE PEOPLE SAY A ONEYEAR PROGRAM PROBABLY WOULD BE AN ALTERNATIVE FOR STUDENTS WHO HAVE MORE BUSINESS EXPERIENCE THAN THOSE WHO TYPICALLY PURSUE THE TWOYEAR PATH IT ALSO COULD RAISE SIGNIFICANT AND WELCOME NEW REVENUE ACCORDING TO ITS DEAN JOHN H MCARTHUR THE BOSTONBASED SCHOOL IS FACING MAJOR FINANCIAL SHORTFALLS THE CHANCES OF THE ONEYEAR MBA BECOMING A REALITY AREN'T CLEAR BUT IF IT DOES HARVARD WOULD BECOME THE MOST PROMINENT OF ABOUT TWO DOZEN US BUSINESS SCHOOLS THAT OFFER A ONEYEAR OPTION THE MOVE PROBABLY WOULD GENERATE NEW CRITICISM ABOUT THE VALUE OF AN MBA AND RAISE QUESTIONS ABOUT WHETHER THE DEGREE IS BEING CHEAPENED IT ALSO WOULD CAUSE MANY OTHER SCHOOLS TO CONSIDER THE IDEA IF HARVARD DOES IT PEOPLE NOTICE IT SAYS MILTON R BLOOD MANAGING DIRECTOR OF THE AMERICAN ASSEMBLY OF COLLEGIATE SCHOOLS OF BUSINESS THE PRINCIPLE ACCREDITING BODY FOR BUSINESS SCHOOLS A HARVARD BUSINESS SCHOOL SPOKESWOMAN DECLINED TO COMMENT SHE SAID NO OFFICIALS WOULD BE AVAILABLE TO COMMENT FOR SEVERAL WEEKS UNTIL AFTER THE SCHOOL'S FACULTY HAS CONSIDERED POSSIBLE CHANGES EMERGING FROM THE REVIEW THE NEARLY 200MEMBER FACULTY IS SCHEDULED TO GET ITS FIRST LOOK AT THOSE PROPOSALS AT A MEETING TODAY FOLLOWING MORE THAN A YEAR OF RESEARCH AND DELIBERATION AMONG SELECTED PROFESSORS AND ADMINISTRATORS SPEAKING PRIVATELY SEVERAL MEMBERS OF THE SCHOOL'S FACULTY SAID THE IDEA OF AN EXPRESS VERSION OF THE MBA IS SUPPORTED BY MR MCARTHUR A PRECISE PICTURE OF THE SCHOOL'S FINANCES WASN'T AVAILABLE BUT IN AN APPEARANCE WEDNESDAY AT YALE UNIVERSITY MR MCARTHUR SAID HIS SCHOOL NEEDS MORE MONEY TO SUPPORT GROWING OVERHEAD COSTS FOR STAFF RESEARCH AND FACILITIES HE SAID THE SCHOOL'S MBA AND EXECUTIVE PROGRAMS GENERATE ABOUT 50 MILLION EACH A YEAR WHILE REVENUES FROM THE SCHOOL'S PUBLISHING UNIT WHICH PRODUCES AND MARKETS BOOKS VIDEOS CASE STUDIES AND THE HARVARD BUSINESS REVIEW WILL BE ABOUT 70 MILLION THIS YEAR A ONEYEAR MBA ALSO COULD PROVIDE A HEDGE AGAINST SLIDING DEMAND FOR OTHER PROGRAMS APPLICATIONS FOR 800 SLOTS IN THIS YEAR'S FIRSTYEAR MBA CLASS WERE ABOUT 5900 DOWN FROM 6500 FIVE YEARS AGO APPLICATIONS FOR EXECUTIVE PROGRAMS ALSO ARE DOWN IN SURPRISING REMARKS FIRST REPORTED THIS WEEK MR MCARTHUR TOLD HARVARD UNIVERSITY'S PRESIDENT IN JUNE THAT THE BUSINESS SCHOOL NEEDS SUBSTANTIAL NEW REVENUES TO MAINTAIN ITS PROGRAMS AND TO RECRUIT AND RETAIN QUALIFIED FACULTY IF IT DOESN'T RAISE THE MONEY THE SCHOOL RISKS FLOUNDERING MEDIOCRITY AND BECOMING AN ALSORAN THE DEAN WARNED HOW HARVARD MIGHT POSITION A ONEYEAR MBA ISN'T CLEAR THE SCHOOL OFFERS NONDEGREE COURSES TARGETED AT RISING MIDDLE MANAGERS AND ITS MBA DRAWS PEOPLE OF WIDELY VARYING EXPERIENCE ACCORDING TO ONE SCENARIO REPORTEDLY DISCUSSED THIS YEAR HARVARD WOULD RESUME ADMITTING STUDENTS RIGHT OUT OF COLLEGE AS WAS TYPICAL UNTIL ABOUT A DECADE AGO INTO ITS TWOYEAR PROGRAM AND REQUIRE TWO TO FOUR YEARS OF WORK EXPERIENCE FOR THE ONEYEAR MBA ANOTHER POSSIBILITY RETAINING THIS WORK REQUIREMENT FOR THE TWOYEAR MBA AND DEMANDING EVEN MORE EXPERIENCE PERHAPS SEVEN TO 10 YEARS FOR THE ONEYEAR VERSION IN EITHER CASE THEY WANT TO BE CAREFUL THAT THEY DON'T CANNIBALIZE THEIR EXISTING PROGRAMS SAYS MR BLOOD HARVARD ISN'T BELIEVED TO BE CONSIDERING JOINING THE RANKS OF SCHOOLS THAT OFFER THE MBA THROUGH EVENING OR WEEKEND STUDY THOUGH A ONEYEAR MBA MIGHT COMPETE WITH SUCH PROGRAMS NATIONWIDE INTEREST IN SHORTER FULLTIME MBA PROGRAMS APPEARS TO BE RISING IN AN INCREASINGLY UNCERTAIN JOB MARKET PEOPLE WANT TO MINIMIZE LOST INCOMEAS WELL AS TUITION COSTS AND START EARNING RETURNS ON THEIR NEW CREDENTIAL SOONER SCHOOLS SAY SHORTPROGRAM APPROACHES DIFFER FOR ITS ONEYEAR PROGRAM NORTHWESTERN UNIVERSITY'S KELLOGG SCHOOL IN EVANSTON ILL ADMITS ONLY THOSE WHO WERE BUSINESS MAJORS IN COLLEGE AFTER A SUMMER OF CONDENSED INTRODUCTORY COURSES THEY JOIN KELLOGG'S SECONDYEAR MBA CLASS AT COLUMBIA BUSINESS SCHOOL IN NEW YORK CITY STUDENTS CAN COMPLETE THE REGULAR TWOYEAR MBA IN AS LITTLE AS 16 MONTHS BY TAKING COURSES THROUGH THE TRADITIONAL SUMMER BREAK INTEREST IN THIS APPROACH HAS DOUBLED IN THE PAST TWO YEARS COLUMBIA SAYS BUT ONE OF HARVARD'S BIGGEST COMPETITORS THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL HAS REJECTED A ONEYEAR OPTION OUR VIEW IS THAT IF YOU WANT TO GIVE STUDENTS AN OPPORTUNITY TO MOVE INTO AN ORGANIZATION IN A MEANINGFUL WAY THAT REQUIRES AN OVERALL VIEW OF BUSINESS AND A DEPTH OF KNOWLEDGE THAT THEY CAN'T GET IN LESS THAN TWO YEARS SAYS ANTHONY M SANTOMERO WHARTON'S DEPUTY DEAN 9310290018 931029 BUSINESS BRIEF TANDEM COMPUTERS INC CONCERN REPORTS 88 DECLINE IN FISCAL FOURTHQUARTER NET TANDEM COMPUTERS INC CONTINUING TO SUFFER FROM A WEAK MARKET FOR BIG COMPUTERS REPORTED AN 88 DROP IN FISCAL FOURTHQUARTER NET INCOME THE CUPERTINO CALIF COMPUTER MAKER SAID NET FOR THE QUARTER ENDED SEPT 30 WAS 32 MILLION OR THREE CENTS A SHARE COMPARED WITH 272 MILLION OR 25 CENTS A SHARE A YEAR EARLIER THE MEAN ESTIMATE OF FINANCIAL ANALYSTS ACCORDING TO ZACKS INVESTMENT RESEARCH INC WAS FOR PERSHARE RESULTS TO BREAK EVEN REVENUE FELL 39 TO 5539 MILLION FROM 5763 MILLION TANDEM'S STOCK FELL 150 OR 117 TO CLOSE AT 11375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TANDEM HAS BEEN HURT BY THE WEAK WORLD ECONOMY PRICE COMPETITION AND A MOVE AMONG CORPORATE COMPUTER BUYERS TOWARD SMALLER SYSTEMS IN ITS THIRD QUARTER THE COMPANY POSTED A 5495 MILLION NET LOSS INCLUDING A 451 MILLION RESTRUCTURING CHARGE 9310290017 931029 INNERCITY PROGRAM FOR SCHOOLS EXPANDS INTO PUBLIC HOUSING NEW YORK A MODEL INNERCITY SCHOOL PROGRAM CREATED BY BUSINESSMAN EUGENE LANG IS EXPANDING BEYOND THE CLASSROOM AND INTO PUBLIC HOUSING THE I HAVE A DREAM FOUNDATION STARTED BY MR LANG IN THE 1980S IS JOINING WITH THE FEDERAL HOUSING AND URBAN DEVELOPMENT DEPARTMENT IN ADOPTING FOR 10 YEARS ALL THE SECONDGRADE AND THIRD GRADE STUDENTS LIVING IN THE CHELSEAELLIOTT PUBLICHOUSING DEVELOPMENT IN NEW YORK CITY THE YOUNGSTERS WILL RECEIVE INDIVIDUAL ATTENTION THROUGHOUT THE DECADE IN THE FORM OF TUTORING MENTORING SUMMER PROGRAMS AND OTHER SERVICES ON COMPLETING HIGH SCHOOL THE YOUTHS WILL RECEIVE HELP WITH COLLEGE EXPENSES SIMILAR PROJECTS ARE UNDER WAY IN DENVER CHICAGO AND CHESTER PA THE ORIGINAL ADOPTACLASS PROGRAM WAS SPARKED BY MR LANG'S 1981 VISIT TO HIS OLD GRADE SCHOOL IN EAST HARLEM NY WHEN HE PLEDGED TO PAY COLLEGE EXPENSES FOR ANY OF THE SIXTH GRADERS THERE WHO GRADUATED FROM HIGH SCHOOL TODAY THE PROGRAM INVOLVES 12000 CHILDREN IN 54 CITIES WITH SPONSORS WHO MAKE PERSONAL COMMITMENTS OF TIME AND RESOURCES THE IDEA OF THE NEW VENTURE IS TO INVOLVE PARENTS AND OTHER ROLE MODELS AND COMMUNITY GROUPS WHO WILL SUPPORT THE STUDENTS WHERE THEY LIVE THE HOUSING DEVELOPMENT IS WHERE MANY YOUNGSTERS' PROBLEMS DEVELOP IT'S WHERE THEY SUCCUMB TO PEER PRESSURES AND PROBLEMS WITH SCHOOL MR LANG SAID IN AN INTERVIEW THE PROGRAM IS EXPECTED TO COST ABOUT 400000 AND WILL RELY HEAVILY ON DONATED GOODS AND SERVICES FOR INSTANCE THE NEW SCHOOL FOR SOCIAL RESEARCH IN NEW YORK WILL PROVIDE WEEKLY TUTORS AND THE NEW YORK CITY HOUSING AUTHORITY WILL PROVIDE SPACE 9310290016 931029 TECHNOLOGY CYPRESS IS PLANNING TO BUY PERFORMANCE SEMICONDUCTOR CORP SAN JOSE CALIF CYPRESS SEMICONDUCTOR CORP TODAY WILL UNVEIL PLANS TO BUY CLOSELY HELD PERFORMANCE SEMICONDUCTOR CORP CONTINUING A SHAKEOUT AMONG MIDSIZE MAKERS OF MICROCHIPS TERMS AREN'T EXPECTED TO BE DISCLOSED IN THE ANNOUNCEMENT CYPRESS ONE OF THE BESTKNOWN CHIP STARTUPS OF THE 1980S IS BEGINNING TO EXPAND AGAIN AFTER A 1992 STUMBLE THAT PRODD THE COMPANY'S FIRST LOSS SINCE GOING PUBLIC IN 1986 IN LATE SEPTEMBER THE COMPANY ANNOUNCED A DEAL TO BUY IC DESIGNS INC A MAKER OF ELECTRONIC TIMING CHIPS FOR 16 MILLION PERFORMANCE BASED IN SUNNYVALE CALIF WAS FOUNDED IN 1984 AND MADE A NAME IN ULTRAFAST LOGIC AND MEMORY CHIPS BUT ANALYSTS BELIEVE THE COMPANY IS CURRENTLY UNPROFITABLE INTEGRATED CIRCUIT ENGINEERING CORP A MARKET RESEARCH FIRM BASED IN SCOTTSDALE ARIZ ESTIMATED THAT PERFORMANCE'S SALES DECLINED TO 45 MILLION LAST YEAR FROM 51 MILLION IN 1991 PERFORMANCE IS ONE OF SEVERAL COMPANIES SELLING MICROPROCESSORS BASED ON A TECHNOLOGY DEVELOPED BY MIPS TECHNOLOGIES INC NOW A PART OF SILICON GRAPHICS INC IN MOUNTAIN VIEW CALIF JIM HANDY A SENIOR INDUSTRY ANALYST AT DATAQUEST INC SAID THE MIPS LINE FAILED TO GROW AS QUICKLY AS PLANNED AND DIVERTED PERFORMANCE'S ATTENTION FROM OTHER IMPORTANT PRODUCT AREAS INCLUDING STATIC RANDOMACCESS MEMORY CHIPS CYPRESS WHICH COMPETES WITH PERFORMANCE IN THE MEMORY FIELD SOLD ITS OWN UNPROFITABLE MICROPROCESSOR BUSINESS TO FUJITSU LTD IN MAY FOR 23 MILLION TJ RODGERS CYPRESS'S CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THAT HE EXPECTS TO PHASE OUT PERFORMANCE'S MICROPROCESSOR BUSINESS AFTER THE SALE 9310290015 931029 SEC'S LEVITT WANTS MORE TO JOIN BAN ON POLITICAL GIFTS BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT LAUNCHED AN AGGRESSIVE EFFORT TO ENCOURAGE MORE PARTICIPANTS IN THE MUNICIPAL BOND MARKET TO VOLUNTARILY CURTAIL POLITICAL CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS MR LEVITT SENT LETTERS TO TRADE GROUPS REPRESENTING BOND UNDERWRITERS AND BOND LAWYERS AMONG OTHERS ASKING THEM TO TAKE A PLEDGE SIMILAR TO ONE FORMALLY ADOPTED LAST WEEK BY 17 OF THE LARGEST WALL STREET SECURITIES FIRMS THE FIRMS SAID THEY WILL STOP CONTRIBUTING TO THE ELECTION CAMPAIGNS OF STATE AND LOCAL OFFICIALS TO EXORCISE THE IMAGE THAT THE FIRMS PAY TO PLAY IN THE BOND BUSINESS THOSE DAYS ARE OVER SAID FRANK ZARB VICE CHAIRMAN OF PRIMERICA CORP AND LEADER OF THE VOLUNTARY EFFORT TO CURB CONTRIBUTIONS PRIMERICA IS THE PARENT OF SMITH BARNEY SHEARSON INC THE FIFTHLARGEST UNDERWRITER OF MUNICIPAL BONDS IN THE US THERE HAVE BEEN NO FORMAL ADDITIONS TO THE LIST THAT SIGNED ONTO THE RESTRAINT PROGRAM AT A MEETING OF WALL STREET LEADERS AT THE SEC BUT PARTICIPANTS SAID THEY EXPECT THE NUMBER TO GROW CONSIDERABLY AFTER MR LEVITT'S LETTER TO 11 GROUPS REPRESENTING VARIOUS TYPES OF MARKET PARTICIPANTS IS RECEIVED AND DIGESTED CALLING THE VOLUNTARY INDUSTRY INITIATIVE A SIGNIFICANT AND SUBSTANTIAL STEP FORWARD MR LEVITT TOLD THE GROUPS THAT I BELIEVE THAT THE PRINCIPLES OF THIS AGREEMENT SHOULD BE REVIEWED CONSIDERED AND EMBRACED BY ALL PARTICIPANTS IN THE MUNICIPAL SECURITIES UNDERWRITING PROCESS GROUPS REPRESENTING STATE AND LOCAL BOND ISSUERS WERE AMONG THOSE RECEIVING THE LETTER I REALLY BELIEVE THERE IS A SEA CHANGE GOING ON SAID BARBARA MAYDEN OF SKADDEN ARPS SLATE MEAGHER & FLOM WHO PROVIDED LEGAL ADVICE ON THE PROGRAM ADOPTED BY THE LARGE SECURITIES FIRMS SHE SAID HAVING MAJOR WALL STREET FIRMS PULL THE PLUG ON THE PRACTICE MAKES IT MUCH EASIER FOR OTHERS TO FOLLOW SUIT A LITTLE LEADERSHIP HELPS A LOT SHE SAID SEPARATELY HEATHER RUTH PRESIDENT OF THE PUBLIC SECURITIES ASSOCIATION ESTIMATED THAT ABOUT HALF OF THE ROUGHLY 175 REGIONAL FIRMS IN THE ASSOCIATION HAVE ADOPTED SOME FORM OF MORATORIUM ON POLITICAL CONTRIBUTIONS TO STATE AND LOCAL GOVERNMENT OFFICIALS AS RECOMMENDED BY THE PSA THE PSARECOMMENDED TEMPORARY BAN IS DESIGNED CHIEFLY TO AVOID REGULATORY RETRIBUTION WHILE REGULATORS WRITE FINAL RULES ON POLITICAL GIVING THE VOLUNTARY PROGRAM ADOPTED BY THE LARGE FIRMS BY CONTRAST IS INTENDED TO BE PERMANENT AND WAS BEING DEVELOPED WELL BEFORE REGULATORS STARTED TO MOVE ON THE ISSUE THE ENCOURAGEMENT FROM MR LEVITT SHOULD ADD MOMENTUM TO A PERMANENT PROGRAM MS RUTH SAID ANY LETTER FROM THE SEC CHAIRMAN WE FEEL COMFORTABLE RESPONDING TO SHE SAID NEIL ARKUSS OF PALMER & DODGE HEAD OF THE NATIONAL ASSOCIATION OF BOND LAWYERS SAID THE GROUP IS GIVING FASTTRACK CONSIDERATION TO A PROPOSED BAN ON CONTRIBUTIONS AND EXPECTS TO ADDRESS THE ISSUE HEADON AT A NOV 18 BOARD MEETING J CHESTER JOHNSON AN INDEPENDENT FINANCIAL ADVISER SAID THE NATIONAL ASSOCIATION OF INDEPENDENT PUBLIC FINANCE ADVISERS WENT ON RECORD NOT LONG AGO DISCOURAGING THE USE OF POLITICAL PAYMENTS TO GET OR KEEP MUNI BUSINESS MR LEVITT'S LETTER WAS SENT TO ORGANIZATIONS INCLUDING THE FINANCIAL ADVISERS GROUP THE PSA THE NABL THE SECURITIES INDUSTRY ASSOCIATION THE NATIONAL ASSOCIATION OF STATE TREASURERS THE NATIONAL ASSOCIATION OF SECURITIES PROFESSIONALS THE GOVERNMENT FINANCE OFFICERS ASSOCIATION THE NATIONAL ASSOCIATION OF STATE AUDITORS COMPTROLLERS AND TREASURERS AND THE NATIONAL COUNCIL OF STATE HOUSING AGENCIES 9310290014 931029 CANADA TO AUCTION BONDS OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION WEDNESDAY 190 BILLION CANADIAN DOLLARS US144 BILLION OF 75 BONDS DUE DEC 1 2003 THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9310290013 931029 UST INC STOCK REPURCHASE PLAN GREENWICH CONN UST INC SAID IT PLANS TO ADD 50 MILLION TO ITS STOCK REPURCHASE PROGRAM THE SNUFF MAKER'S STOCK PLUNGED 12 WEDNESDAY AFTER A HUGE INCREASE IN SNUFF TAXES WAS PROPOSED AS PART OF THE HEALTHCARE PLAN IN LIGHT OF THE DROP THE COMPANY SAID ITS STOCK IS AN ATTRACTIVE INVESTMENT OPPORTUNITY UNDER ITS CURRENT STOCK REPURCHASE PROGRAM UST IS AUTHORIZED TO BUY BACK AS MANY AS 40 MILLION SHARES SINCE THE PROGRAM STARTED IN 1990 ABOUT 30 MILLION SHARES HAVE BEEN REPURCHASED UST GAINED 1125 OR 45 TO 25875 IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9310290012 931029 LETTERS TO THE EDITOR THE SONGS WILL PREVAIL PETER PAUL AND MARY HAVE RECEIVED WHAT IS PERHAPS THE DEFINITIVE LEFTHANDED IN THIS CASE RIGHTHANDED COMPLIMENT OF OUR CAREERS IRVING KRISTOL IN HIS CLINTON'S ILLUSIONSPIRIT OF THE 60S EDITORIALPAGE ESSAY OF AUG 19 ASSERTS THAT THE REASON THE CLINTON ADMINISTRATION HAS BEEN DOING SO POORLY IS DUE TO AN IDEOLOGY DEFINED BY THE COUNTERCULTURAL OUTLOOK THEY ASORBED IN THEIR UNIVERSITY YEARS AND IN LAW SCHOOL TOO AS WELL AS IN THE BOOKS AND MAGAZINES THEY READ THE MOVIES THEY MOST PARTICULARLY LOVED THE SONGS THEY MOST ENJOYED LISTENING TO OR SINGING REFERRING TO PETER PAUL AND MARY'S LEFTWING SONGS SUNG AT OUR RECENT CONCERTS AT WOLFTRAP MR KRISTOL GOES ON TO UNDERSCORE PLATO'S AND CONFUCIUS'S OBSERVATIONS LET ME WRITE THE SONGS THE PEOPLE SING AND YOU WRITE THE LAWS THE SONG WILL ALWAYS PREVAIL LET US SEE WHAT MR KRISTOL ASSERTS IS WRONG WITH THE PRESUMPTIONS OF THE CLINTON ADMINISTRATION AND WHERE PETER PAUL AND MARY FIT IN AS THE PARTIAL SOURCE IN HIS OPINION OF THE ADMINISTRATION'S MISGUIDED POINT OF VIEW IN HIS ARTICLE MR KRISTOL WRITES THERE IS RESENTMENT AGAINST TAX INCREASES ON ANYONE NOT BECAUSE PEOPLE ARE STUPID OR UNINSTRUCTED BUT BECAUSE THE MONEY GOES TO THE STATE IN THE FIRST PLACE WELL MR KRISTOL WITH A FOLK SINGER'S EAR TO THE GROUND I'VE COME TO THE CONCLUSION THAT RESENTMENT AGAINST TAXES EXISTS SOLELY TO THE DEGREE THAT PEOPLE HAVE LOST FAITH IN OUR GOVERNMENT'S ABILITY TO USE THE MONEY FAIRLY AND WISELY AND TO DELIVER BENEFITS TO THE FAMILY OF AMERICA I REFER NOT TO THE NUCLEAR FAMILY OF HUSBAND WIFE AND A COUPLE OF CHILDREN BUT TO THE AMERICAN FAMILY IE ALL AMERICANS TRUE PEOPLE ARE VERY CONCERNED ABOUT THE DEFICIT AND THE NATIONAL DEBT AND AS THEY HAVE WATCHED IT EXPLODE TO FOUR TIMES THE SIZE IT WAS PREVIOUS TO THE REAGAN/BUSH YEARS THEY'VE BECOME ANGRY ABOUT HOW ALL THAT MONEY WAS SPENT THEY'VE WATCHED FREQUENTLY IN DESPAIR AS THE DISTANCE BETWEEN THE HAVES AND THE HAVENOTS HAS INCREASED DRAMATICALLY AS THE QUALITY OF PUBLIC EDUCATION HAS DIMINISHED AND THE OPTIONS FOR THE POOR AND MINORITIES HAVE SHRUNK AND THE PERCENTAGE OF CHILDREN IN AMERICA LIVING BELOW THE POVERTY LINE INCREASED TO MORE THAN 20 THE WORKING AND MIDDLE CLASS LOST THEIR JOBS WHILE THE STOCK MARKET SKYROCKETED AND CONSERVATIVE PUNDITS LIKE MR KRISTOL PROCLAIMED THAT ALL WAS WELL IN AMERICA THE PEOPLE SAW THE WEALTH OF THEIR NATION ACCUMULATED SINCE THE GREAT DEPRESSION SQUANDERED DURING 12 YEARS OF REAGAN/BUSH POLICY PRINCIPALLY TO BENEFIT THE TOP END OF THE HIERARCHY OF THE TRICKLE DOWN THEORY A CRUEL AND FALLACIOUS PREMISE WHOSE IMPLEMENTATION HAS ALL BUT BANKRUPTED US MORTGAGED OUR FUTURE GENERATIONS' WELFARE AND SEVERELY LIMITED OUR PRESENT OPTIONS AND YET MR KRISTOL INCOMPREHENSIBLY ASSERTS THE DISTRIBUTION OF WEALTH AND INCOME IN THE US IS ALMOST NEVER A POLITICAL ISSUE TAKING A FARBACK SEAT TO THE DEFICIT JOB GROWTH AND EVEN FOREIGN POLICY JUDGING BY THE COMMENTS I'VE HEARD FROM THE ALLAMERICAN RANK AND FILE WITH WHOM I HAVE SUNG MARCHED AND WORKED POLITICALLY INCLUDING REPUBLICANS WHO STILL LISTEN TO OUR MUSIC WITHOUT FEELING TAINTED MR KRISTOL'S ASSERTIONS ARE NOT JUST INSENSITIVE TO THE CRIES OF SO MANY OF OUR COUNTRYMEN AND WOMEN THEY ARE DEAD WRONG ONE NEED LOOK NO FURTHER THAN THE BREAKDOWN OF ECONOMIC FAIRNESS IN OUR SOCIETY TO EXPLAIN THE ANGER AND VIOLENCE OF OUR YOUTH THE MASSIVE INCREASE IN CRIME AND DRUG USE THE DISREGARD OF LIFE AND THE MALAISE OF THE SOUL THAT AFFLICTS TENS OF MILLIONS OF PEOPLE WHO HAVE BEEN VIRTUALLY IGNORED OR DISCARDED AS A RESULT OF POLICIES ADOPTED DURING THE REAGAN/BUSH YEARS I'VE SUNG SONGS TO THESE ISSUES IN THE STREETS AT BENEFITS IN THE HALLS OF CONGRESS AND THE WHITE HOUSE INTERDICTION LONGER JAIL SENTENCES AND TOUGHER DRUG LAWS WON'T FIX THE UNDERLYING PROBLEMS OF OUR SOCIETY THEY WILL ONLY TREAT THE SYMPTOMS WHAT MUST BE ADDRESSED IS THE HISTORICAL UNFAIRNESS ELITISM AND BLINDNESS LEFT OVER FROM FORMER GOVERNMENTAL POLICIES THAT HAVE CREATED AN ALIENATED SOCIETY AND A LOSS OF FAITH IN EACH OTHER AND OUR ELECTED REPRESENTATIVES I DO NOT BELIEVE AMERICANS WILL OPPOSE TAXING THE RICH NOR EVEN THAT THE RICH WILL OPPOSE BEING TAXED IF AND ONLY IF GOVERNMENT USES THE MONEY WISELY IN THE PAST AMERICANS HAVE BEEN WILLING TO SACRIFICE TO PRESERVE THE WELLBEING OF THE NATION AND I BELIEVE WE CAN AND WILL DO SO AGAIN THAT DOES NOT MEAN EVERYONE NEED EMBRACE PETER PAUL AND MARYSTYLE LEFTIST IDEOLOGIES IT SIMPLY MEANS WE MUST COMMIT OURSELVES TO THE IDEA THAT WE AS A NATION ARE STRONG ONLY AS LONG AS WE DO NOT TREAT THE POOR DISENFRANCHISED OR WORKING PEOPLE OF OUR SOCIETY AS EXPENDABLE ONLY AS LONG AS WE DO NOT EXCLUDE VAST SEGMENTS OF OUR SOCIETY FROM OUR AMERICAN FAMILY AND THAT'S WHERE THE SONGS COME IN ALTERING NATIONAL POLICY CAN ONLY ACCOMPLISH SO MUCH TO CURE THE ILLNESS OF THE SPIRIT CHANGE MUST TAKE PLACE IN THE HEARTS OF THE AMERICAN PEOPLE IF IT IS EVER TO BE REAL OR LASTING THE SONGS THEATER PIECES AND THE POEMS AS IN SO MANY ERAS BEFORE EVEN PLATO'S AND CONFUCIUS'S TIME CAN ALLOW THE VOICE OF IDEALISM AND HOPE FOR SO LONG FRIGHTENED AND HIDDEN IN THE AMERICAN HEART TO REASSERT ITSELF ONCE AGAIN AS IN THE 60S SONGS MUST BE SUNG CONFIRMING THAT EACH AND EVERY PERSON ORDINARY CITIZENS NOT NECESSARILY ENFRANCHISED BY WEALTH OR STATUS CAN CONTRIBUTE TO THE TRANSFORMATION OF SOCIETY AND THE FORGING OF A BRIGHTER FUTURE PRESIDENT CLINTON'S EFFORTS DO INDEED RESONATE WITH SUCH SONGS AND YES THEY ARE PART OF THE VOICE AND MANDATE FOR CHANGE THAT ELECTED HIM FORTUNATELY HIS ADMINISTRATION IS COMMITTED TO AN OPEN GRASSROOTS DIALOGUE AND IS ATTEMPTING TO MAKE THE BUSINESS OF GOVERNMENT EVERYONE'S BUSINESS GIVEN THE OPPORTUNITY AND THE INSPIRATION THE PEOPLE OF AMERICA WILL CARE MUCH MORE ABOUT EACH OTHER THAN MR KRISTOL'S DEHUMANIZING MODEL OF SELFISHNESS SUGGESTS YES THE ARTISTS WILL SING THE PAINTERS WILL PAINT AND THE POETS WIN PROCLAIM AND LET US HOPE THAT THEY AND THOSE WHO SHARE THEIR DREAM WILL PREVAIL PETER YARROW OF PETER PAUL AND MARY WAS AN ORGANIZER OF SUCH EVENTS AS THE 1969 MARCH ON WASHINGTON AND THE SURVIVAL SUNDAY ANTINUKE FESTIVALS IN LOS ANGELES 9310290011 931029 MARKETING & MEDIA ADVERTISING MIRAMAX TRIES ARTHOUSE CROWD AFTER MOVIE BOMBS WITH FAMILIES BY KEVIN GOLDMAN WHEN MIRAMAX FILMS THE DISTRIBUTOR OF SUCH HIGHBROW MOVIES AS MY LEFT FOOT AND HOWARDS END RELEASED INTO THE WEST LAST MONTH IT TRIED FOR THE FIRST TIME TO REACH A MASS FAMILY AUDIENCE THE MOVIE BOMBED NOW MIRAMAX IS TRYING TO SALVAGE IT BY REACHING OUT TO THE COMPANY'S MORE FAMILIAR CAPPUCINOSIPPING AUDIENCE MIRAMAX IS TAKING THE UNUSUAL STEP OF RERELEASING INTO THE WEST TODAY AND LAUNCHING AN ENTIRELY NEW AND BIGGER BUDGET ADVERTISING CAMPAIGN THE MOVIE AN IRISH TALE ABOUT A MAGIC HORSE STUMBLED OUT OF THE STARTING GATE AND IS GONE FROM THE 550 MOVIE THEATERS THAT ORIGINALLY CARRIED IT INSTEAD IT WILL REOPEN IN 60 SMALLER SOCALLED ART THEATERS THE NEW PRINT AND TELEVISION ADS CARRY THIS PLEA SOME MOVIES DESERVE A SECOND CHANCE WHILE FAMILIES AROUND THE COUNTRY ENJOYED THE MOVIE IT WAS THE ADULTS NOT THE KIDS WHO REALLY LOVED IT IN FACT THE NEW ADS URGE PARENTS TO THIS TIME LEAVE THE KIDS AT HOME MIRAMAX'S MOVE IS FRAUGHT WITH RISK WITH SEVERAL CRITICAL FACTORS WORKING AGAINST IT FOR ONE NEWSPAPERS AREN'T GOING TO REPRINT MONTHOLD REVIEWS SO IT'S UNCERTAIN WHETHER MOVIEGOERS WILL EVEN KNOW THE PLOT SYNOPSIS OF INTO THE WEST THE FILM WAS GENERALLY WELLRECEIVED WITH POSITIVE REVIEWS FROM SUCH NEWSPAPERS AS THE WALL STREET JOURNAL AND THE NEW YORK TIMES ANOTHER DISADVANTAGE ACCORDING TO ENTERTAINMENT ANALYSTS IS THAT MANY CONSUMERS ALREADY KNOW ABOUT THE MOVIE AND PASSED ON IT ANYWAY IT JUST CONFUSES PEOPLE SAYS AD MURPHY THE BOX OFFICE ANALYST FOR THE HOLLYWOOD REPORTER PEOPLE REMEMBER WHAT THEY CHOSE NOT TO SEE IF THEY SEE NEW ADS THEY'LL SAY WAIT A MINUTE WHAT'S GOING ON WHAT'S DIFFERENT' WELL PEOPLE AREN'T GOING TO SPEND MONEY ON SOMETHING THEY'RE CONFUSED ABOUT INTO THE WEST HAS YET TO RECOUP THE MODEST 65 MILLION IT COST TO PRODUCE TO DATE THE MOVIE GROSSED ONLY 42 MILLION AND THE NUMBER OF SCREENS PLAYING IT HAS DWINDLED BY 81 TO ONLY 103 OTHER MOVIES HAVE TRIED SWITCHING MARKETING GEARS BUT WITHOUT SUCCESS LAST SUMMER SONY'S COLUMBIA PICTURES RELEASED LAST ACTION HERO STARRING ARNOLD SCHWARZENEGGER INSTEAD OF INITIALLY PLAYING TO THE STAR'S HEMAN STRENGTH THE ADS STRESSED THE FANTASY ASPECT OF THE MOVIE SUBSEQUENT ADS FEATURED A SHOT OF MR SCHWARZENEGGER BRANDISHING A GUN THE MARKETING FINETUNING DIDN'T HELP THE MOVIE WHICH MANY CRITICS PANNED BUT MOVIE INDUSTRY OBSERVERS CAN'T RECALL SUCH A RADICAL OVERHAUL AS THE NEW CAMPAIGN FOR INTO THE WEST INSTEAD FILM COMPANY EXECUTIVES TEND TO EMOTIONALLY DISTANCE THEMSELVES FROM A BOMB SAYS ONE HOLLYWOOD STUDIO OFFICIAL AT BEST MOVIE ADS ARE USUALLY JUST TWEAKED A COLUMBIA SPOKESMAN SAYS I FAULT THE ADVERTISING STRATEGY SAYS GERRY RICH MIRAMAX'S SENIOR VICE PRESIDENT OF MARKETING IN OUR ZEAL TO RELEASE WHAT WE THOUGHT WAS AN IMPORTANT MOVIE WE DIDN'T TAKE INTO ACCOUNT ALL THE OBSTACLES IN THE FAMILY MOVIE MARKET HE DECLINED TO SAY HOW MUCH MIRAMAX WILL END UP SPENDING PROMOTING INTO THE WEST THE MISSTEP IS ALL THE MORE PAINFUL BECAUSE MIRAMAX WAS PURCHASED LAST MAY BY THE MASTER OF THE FAMILY FILM WALT DISNEY CO MIRAMAX BADLY UNDERESTIMATED THE DIFFICULTY OF MARKETING A MOVIE FOR THE ENTIRE FAMILY THAT DIDN'T INCLUDE A HOT CHILD STAR LIKE MACAULAY CULKIN OR CARTOON CHARACTERS WE DON'T HAVE THE USUAL SPECIAL EFFECTS OR STARS FOR CHILDREN ADMITS MR RICH INSTEAD INTO THE WEST STARS GABRIEL BYRNE AND ELLEN BARKIN IF THE STARS DIDN'T HELP TO SELL THE FILM TO FAMILIES NEITHER DID THE ADS ONE TELEVISION SPOT FEATURED TESTIMONIALS FROM YOUNGSTERS PRAISING THE MOVIE ANOTHER FEATURED SHOT AFTER SHOT OF THE TWO BROTHERS AND THE HORSE THE ADULT STARS WEREN'T EVEN MENTIONED THE ORIGINAL PRINT ADS ALSO STRESSED THE FAMILY EXPERIENCE FOUR OF THE FIVE QUOTES FROM CRITICS MENTIONED FAMILY INCLUDING SPLENDID FAMILY ENTERTAINMENT FROM THE LOS ANGELES TIMES THE RETOOLED ADS SHOW THE ADULT STARS ALONG WITH SEVEN QUOTES FROM CRITICS NONE OF WHICH MENTIONS A CUDDLY ENRICHING FAMILY EXPERIENCE MR RICH BELIEVES MIRAMAX'S MARKETING APPROACH FOR INTO THE WEST ALIENATED THE USUAL CROWD FOR A MIRAMAX FILM THOSE USED TO SEEING SUCH FARE AS THE CRYING GAME AND CINEMA PARADISO LAST WEEK MIRAMAX REALIZING IT HAD NO CHOICE BUT TO ABANDON ITS STRATEGY OF TAPPING THE LUCRATIVE FAMILY AUDIENCE RECRUITED A CROWD FROM A MANHATTAN ARTHOUSE THEATER AND SCREENED INTO THE WEST THE RESPONSE WAS ENTHUSIASTIC REPORTS MR RICH AND THE DECISION WAS MADE TO PUSH ON BY RELEASING THE MOVIE TO SUCH THEATERS AS MANHATTAN'S ANGELIKA FILM CENTER AT LEAST WE DON'T HAVE TO PLAY THE WHAT IF' GAME SAYS MR RICH THE ART HOUSES WERE EAGER TO BOOK THIS FILM IN THE FIRST PLACE ANYWAY WE TURNED AWAY FROM THEM MR MURPHY OF THE HOLLYWOOD REPORTER SAYS THAT EVEN IF INTO THE WEST CATCHES ON IN ART HOUSES IT'LL TAKE A LONG TIME TO ROLL UP ANY GROSSES TO SPEAK OF OF COURSE THE SUCCESS BAR IS MUCH LOWER IN SUCH THEATERS IN THE SNOBBY WORLD OF THE ARTHOUSE FILM A BOXOFFICE GROSS OF 10 MILLION IS CONSIDERED A MAJOR HIT THERE ARE EXCEPTIONS HOWARDS END GROSSED 25 MILLION AND THE CRYING GAME SHOT BEYOND 60 MILLION INTO THE WEST HAS QUITE A DISTANCE TO GO BEFORE IT JOINS THAT EXCLUSIVE CLUB WITH THE FAILURE OF INTO THE WEST AS FAMILY ENTERTAINMENT WHAT'S NEXT FOR MIRAMAX FAMILY FILMS NOTHING RIGHT AWAY THE DIVISION IS DEVELOPING WRINKLE IN TIME BASED ON A CHILDREN'S BOOK BY MADELEINE L'ENGLE HUBBARD BROADCASTING'S US SATELLITE BROADCASTING HIRED THE MINNEAPOLIS OFFICE OF BOZELL TO CREATE CONSUMER ADVERTISING FOR ITS SATELLITE BROADCAST SERVICE BILLINGS ON THE NEW ACCOUNT ARE EXPECTED TO EXCEED 40 MILLION A SPOKESMAN FOR THE CLIENT SAID TRADE ADVERTISING WOULD CONTINUE TO BE HANDLED BY MAMMOTH MARKETING OF ST PAUL MINN US SATELLITE BROADCASTING SAYS IT PLANS TO BEGIN BROADCASTING 150 CHANNELS OF TELEVISION PROGRAMMING VIA SATELLITE IN APRIL AS AN ALTERNATIVE TO CABLE TELEVISION HOUSEHOLDS WILL BE ABLE TO RECEIVE THE SATELLITE SIGNAL WITH EQUIPMENT INCLUDING ANTENNA RECEIVER AND INTERACTIVE REMOTE CONTROL EXPECTED TO RETAIL FOR ABOUT 699 ANOTHER DIRECTSATELLITE BROADCASTER HUGHES COMMUNICATIONS'S DIRECTV WHICH WILL SHARE THE SATELLITE WITH US SATELLITE BROADCASTING SELECTED THE LOS ANGELES OFFICE OF INTERPUBLIC GROUP'S LINTAS CAMPBELLEWALD TO HANDLE CONSUMER ADVERTISING LAST YEAR 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 9310290010 931029 THE BUSINESS OF LAW US JURY FINDS GOLDMAN BIAS AGAINST WOMAN BY MARGARET A JACOBS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A FEDERAL JURY FOUND THAT GOLDMAN SACHS & CO INTENTIONALLY DISCRIMINATED AGAINST A FORMER FEMALE EXECUTIVE ON THE BASIS OF SEX WHEN IT DENIED HER A PROMOTION AND THEN FIRED HER AFTER A 10DAY CIVIL TRIAL THE JURY OF FIVE WOMEN AND FOUR MEN CONCLUDED THAT THE INVESTMENT FIRM'S DISMISSAL OF JOANNE FLYNN A FORMER VICE PRESIDENT VIOLATED FEDERAL LAWS AGAINST SEX DISCRIMINATION THE JURY WHICH SPENT FOUR DAYS DELIBERATING IS EXPECTED TO RETURN TO COURT NEXT WEEK TO DETERMINE THE LEVEL OF DAMAGES MS FLYNN WHO EARNED 180000 A YEAR IN GOLDMAN'S PERSONNEL DEPARTMENT IS SEEKING DAMAGES OF MORE THAN 1 MILLION BUT US DISTRICT JUDGE KIMBA L WOOD WHO'S OVERSEEING THE CASE SAID SHE MIGHT SET ASIDE THE JURY VERDICT AN OPTION AVAILABLE TO A FEDERAL JUDGE BUT RARELY EXERCISED SHE SAID SHE WILL DECIDE BY NEXT TUESDAY IF THE EVIDENCE PRESENTED BY MS FLYNN DURING TRIAL WAS ADEQUATE TO ESTABLISH A CASE OF SEX DISCRIMINATION AS A MATTER OF LAW THIS IS CLOSE SAID JUDGE WOOD REFERRING TO GOLDMAN'S ARGUMENTS FOR SETTING ASIDE THE JURY'S VERDICT IF THE VERDICT IS THROWN OUT THE JURY WILL BE DISMISSED AND WILL NOT CONSIDER DAMAGES THE TRIAL HAD BEEN WIDELY FOLLOWED BECAUSE FEW SEXDISCRIMINATION ACTIONS AGAINST INVESTMENT BANKS AND BROKERAGE FIRMS EVER MAKE IT INTO A COURTROOM WALL STREET IN GENERAL IS BELIEVED TO LAG BEHIND MANY OTHER INDUSTRIES IN PROMOTING WOMEN THOUGH GOLDMAN'S RECORD IS SIMILAR TO THOSE OF OTHER MAJOR FIRMS ABOUT 40 OF ITS 7000 EMPLOYEES ARE FEMALE INCLUDING 18 OF THE VICE PRESIDENTS AND 4 OF THE PARTNERS MS FLYNN 40 YEARS OLD JOINED GOLDMAN IN 1980 AND WORKED HER WAY UP TO HER HIGHPAYING POSITION OFFERING SALES TRAINING TO EMPLOYEES SHE WAS FIRED IN MARCH 1989 AFTER FAILING TO GET A PROMOTION THAT SHE HAD SOUGHT EVEN THOUGH SHE HAD RECEIVED GENERALLY EXCELLENT PERFORMANCE REVIEWS THE MAIN TWIST IN THE CASE WAS THAT THE PERSON WHO GOT THE PROMOTION ALSO WAS A WOMAN MAKING MS FLYNN'S CLAIM PARTICULARLY DIFFICULT TO PROVE HER ATTORNEYS CONTENDED THOUGH AND THE JURY AGREED THAT GOLDMAN DISCRIMINATED AGAINST HER BOTH BY FAILING TO PROMOTE HER AND BY LETTING HER GO ADDITIONAL DISCRIMINATION OCCURRED THE LAWYERS SAID WHEN GOLDMAN OFFERED HER A SEVERANCE PACKAGE RELATIVELY LESS ATTRACTIVE THAN THAT OFFERED TO A MAN WHO HAD PREVIOUSLY BEEN DISMISSED HER LAWYERS HAD ARGUED THAT GOLDMAN EXECUTIVES WERE DISPLEASED BY WHAT THEY CONSIDERED HER AGGRESSIVE SELFSERVING BEHAVIOR INCLUDING HER DECISION TO FIRE A MALE SUBORDINATE THEY SUGGESTED THAT HER ACTIONS MIGHT HAVE BEEN TOLERATED IF SHE HAD BEEN MALE GOLDMAN HAS CONSISTENTLY DENIED THE ALLEGATIONS CONTENDING THAT IT CHOSE TO DISMISS MS FLYNN DESPITE PAST PRAISE BECAUSE SHE COULD NOT GET ALONG WITH THE NEW FEMALE BOSS THEODORE ROGERS AN ATTORNEY FOR GOLDMAN TOLD JURORS THAT MS FLYNN WAS SIMPLY DISAPPOINTED BY HER FAILED ADVANCEMENT DESPITE A SALARY INCREASE OF ABOUT 60000 WE SUBMIT IT'S A HUMAN STORY NOT A STORY OF DISCRIMINATION HE SAID A SPOKESMAN FOR GOLDMAN SAID THE FIRM WAS DISAPPOINTED WITH THE VERDICT STEVEN HYMAN AN ATTORNEY FOR MS FLYNN SAID HE WOULD APPEAL ANY DECISION BY JUDGE WOOD TO OVERTURN THE JURY'S FINDING THIS WAS NOT A QUICK DECISION BY THE JURY HE SAID EMPLOYMENT LAWYERS SAID MOST CHARGES OF SEX DISCRIMINATION AGAINST BANKS BROKERAGE FIRMS AND OTHER FINANCIALSERVICES INSTITUTIONS ARE EITHER SETTLED BEFORE THE FILING OF FORMAL CHARGES OR ARBITRATED QUIETLY THE SETTLEMENTS VIRTUALLY ALL CONTAIN CONFIDENTIALITY PACTS THAT PROHIBIT THE EMPLOYEE FROM EVER DISCUSSING THE ALLEGED DISCRIMINATION OR SETTLEMENT TERMS THE INCLINATION OF COMPANIES TO SETTLE IS MOTIVATED TO A GREAT EXTENT BY THE RELUCTANCE TO RISK THE UNCERTAINTY OF A JURY TRIAL THE LAWYERS SAID THE GENERAL BELIEF IS THAT JURORS IN DISCRIMINATION CASES SYMPATHIZE MORE OFTEN WITH INDIVIDUAL PLAINTIFFS THAN WITH CORPORATE DEFENDANTS IN THE FLYNN CASE ATTORNEYS WHO REPRESENT MANAGEMENT SPECULATED THAT UNLESS THE PLAINTIFF WAS UNWILLING TO SETTLE GOLDMAN MUST HAVE FELT VERY CONFIDENT OF ITS CASE IN ORDER TO EXPOSE ITSELF TO A JURY VERDICT STILL THE FACT THAT MS FLYNN HAD PERFORMED APPARENTLY LOYALLY AND COMPETENTLY FOR MORE THAN NINE YEARS MUST HAVE PLAYED WELL WITH THE JURY THE ATTORNEYS SUGGESTED JAY WAKS AN EMPLOYMENT LAWYER WHO REPRESENTS MANAGEMENT SAID THE DECISION WILL SEND A STRONG MESSAGE TO EMPLOYERS ONLY IF THE JURY GRANTS A LARGE DAMAGE AWARD IF THEY GRANT MEAGER DAMAGES IT WILL BE ALMOST A WASH IT WON'T HAVE MUCH OF AN EFFECT HE SAID 9310290009 931029 INDUSTRY FOCUS DRUG INDUSTRY DARKENS VIEW OF CLINTON HEALTH PLAN OTHERS PREDICT MANY PHARMACEUTICAL FIRMS WILL BENEFIT FROM CHANGES BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL THE PHARMACEUTICAL INDUSTRY AGAIN IS RESPONDING TO PRESIDENT CLINTON'S HEALTHCARE PROPOSAL WITH BLEAK IMAGES OF A CRIPPLED INDUSTRY AND STIFLED RESEARCH IF THE PLAN GOES THROUGH WHAT OTHER INDUSTRY CAN PROVIDE HOPE FOR CURING AIDS ALZHEIMER'S OSTEOPOROSIS OR CANCER EXCEPT FOR THE PHARMACEUTICAL INDUSTRY SAID A SPOKESMAN FOR THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION AFTER THE FINAL PLAN WAS PRESENTED WEDNESDAY IF WE TIE THE HANDS OF THE SCIENTISTS SO THEY CAN'T ADDRESS THESE DISEASES THERE IS NO HOPE THE INDUSTRY NOW HAS EVEN MORE TO COMPLAIN ABOUT THAN LAST MONTH WHEN THE DRAFT PROPOSAL WAS RELEASED THE PRESIDENT TOUGHENED MANY OF THE PROVISIONS THAT AFFECT THE DRUG INDUSTRY WHILE DRUG COVERAGE SURVIVED AS A STANDARD PART OF THE BENEFITS PACKAGE THE REBATE PAID BY DRUG COMPANIES TO THE GOVERNMENT ON MEDICATIONS SOLD TO MEDICARE PATIENTS WAS RAISED TO 17 FROM 15 IN THE DRAFT MOREOVER THAT REBATE CAN BE HIGHER IF AN INDIVIDUAL DRUG'S PRICE HAS INCREASED FASTER THAN GENERAL INFLATION OR IN THE CASE OF A NEW DRUG IF IT IS DEEMED EXCESSIVE OR IF THE DRUG IS SOLD FOR SUBSTANTIALLY LESS IN OTHER COUNTRIES STILL IN THE PLAN AND STILL OBJECTIONABLE TO THE INDUSTRY IS AN ADVISORY COUNCIL ON BREAKTHROUGH DRUGS TO ASSESS AND PUBLISH AN OPINION ON THE REASONABLENESS OF NEWDRUG PRICES THE INDUSTRY IS MOST NERVOUS ABOUT HAVING TO PROVIDE COST INFORMATION FOR A DRUG TO THE COUNCIL AND HAVING PRICES FOR THE DRUG IN OTHER COUNTRIES BE USED AS PART OF THE REVIEW IT'S CRIPPLING IT'S ABSOLUTELY DEVASTATING THEY'RE GOING TO TRADE OFF CHEAP DRUGS TOMORROW FOR NO NEW DRUGS FOR OUR CHILDREN SAID LEIGH THOMPSON CHIEF SCIENTIFIC OFFICER OF ELI LILLY & CO IN A STATEMENT PREPARED BY RX PARTNERS A PUBLICRELATIONS GROUP REPRESENTING SIX DRUG COMPANIES THE MEDICARE REBATE THE GROUP CALCULATES WILL COST THE INDUSTRY 2 BILLION TO 3 BILLION A YEAR SOME ANALYSTS AGREE WITH THE INDUSTRY POSITION BUT AN EMERGING VIEW SAYS THAT DESPITE BEING BLUDGEONED BY PRESIDENTIAL RHETORIC THIS YEAR DRUG COMPANIES GOT OFF PRETTY EASY IN THE PLAN THE INDUSTRY DIDN'T COME OUT THAT BAD SAYS STEPHEN M DALTON VICE PRESIDENT OF CORESTATES INVESTMENT ADVISERS INC IT DIDN'T GET OVERT PRICE CONTROLS IT DID GET A PRESCRIPTIONDRUG BENEFIT WE DON'T HAVE A DRACONIAN STATE OF AFFAIRS PRESIDENT CLINTON'S PROPOSALS ARE INNOCUOUS AND THE INDUSTRY SHOULD ACCEPT THEM AND GET ON WITH ITS BUSINESS SAYS JIM MCCAMANT EDITOR OF THE MEDICAL TECHNOLOGY STOCK LETTER WHICH FOLLOWS THE BIOTECHNOLOGY INDUSTRY ONE VIEWPOINT SAYS THE PRESIDENT'S PROPOSALS WILL EXPAND PHARMACEUTICAL USAGE AND DRUG COMPANIES' SALES DAVID SAKS AN ANALYST AT GRUNTAL & CO ARGUES THAT UNIVERSAL ACCESS TO HEALTH CARE AND THE EMPHASIS ON PREVENTIVE CARE MEAN MORE PEOPLE WILL BE VISITING DOCTORS AND WALKING AWAY WITH PRESCRIPTIONS THE BOTTOM LINE IS UNIVERSAL COMPREHENSIVE CARE IS GOOD FOR SOCIETY AND IT WILL BE PARTICULARLY BENEFICIAL TO THE DRUG INDUSTRY HE SAYS EDWARD E PENHOET PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CHIRON CORP AN EMERYVILLE CALIF SMALL BIOTECHNOLOGY CONCERN SAYS PRESIDENT CLINTON'S PLAN MAKES US MORE COMPETITIVE WITH TRADITIONAL PHARMACEUTICAL COMPANIES CHIRON ISN'T SADDLED WITH THE OVERHEAD OF THE LARGER PHARMACEUTICAL COMPANIES AND THAT GIVES IT AN EDGE IN RESPONDING TO THE CHANGING ENVIRONMENT HE CONTENDS GENERIC DRUGS ARE ANOTHER WINNER UNDER THE PRESIDENT'S PROPOSALS ANALYSTS SAY THE PRESIDENT'S HEALTHCARE PLAN IS PROVIDING INCENTIVES TO ENCOURAGE GENERICDRUG USE GENERICDRUG COMPANIES DON'T HAVE SIGNIFICANT RESEARCH AND DEVELOPMENT COSTS TO THE EXTENT REVENUES SHIFT TO THE GENERIC GROUP THEIR EARNINGS BENEFIT MORE SAYS JAMES LOUGHLIN DIRECTOR OF PHARMACEUTICALS AT ACCOUNTING FIRM KPMG PEAT MARWICK ANALYSTS ARE SKEPTICAL THE PROPOSAL FOR A DRUGPRICE REVIEW COMMITTEE WILL SURVIVE CONGRESS BUT EVEN IF IT DOES SAYS MR MCCAMANT IT WON'T CHANGE THE STATUS QUO MUCH ALL THE COMMITTEE COULD DO IS CREATE PUBLICITY OVER A NEW DRUG PRICE THAT IT CONSIDERS EXCESSIVE HE NOTES BUT THAT HAPPENS NOW ANYWAY DR PENHOET SAYS HE ISN'T AFRAID OF GOVERNMENT SCRUTINY OF DRUG PRICES WE BENEFIT FROM CLOSE EXAMINATION OF THE VALUE OF OUR PRODUCT HE SAYS COMPANIES THAT DON'T DELIVER VALUE IN TODAY'S HEALTHCARE SYSTEM ARE GOING TO GET MORE LIGHT SHINED ON THEIR BUSINESS ANALYSTS HAVE MIXED VIEWS ON THE IMPACT OF THE PRESIDENT'S PLAN TO PROVIDE DRUG COVERAGE TO MEDICARE PATIENTS WHICH WOULD EXPAND THE PHARMACEUTICAL MARKET BUT REQUIRE A 17 REBATE WHICH WOULD REDUCE REVENUES MR LOUGHLIN FIGURES THE PROPOSAL WOULD HAVE A MINIMAL IMPACT ON THE INDUSTRY BUT WOULD REDUCE REVENUES AT COMPANIES WHOSE DRUGS ARE HEAVILY USED BY THE ELDERLY AND CONSEQUENTLY REDUCE FUNDS AVAILABLE FOR RESEARCH BUT MR DALTON THINKS THE DRUG COVERAGE WILL PROMPT MORE PEOPLE TO FILL AND REFILL THEIR PRESCRIPTIONS AND THE EXPANDED VOLUME WILL BENEFIT SUCH COMPANIES AS MERCK & CO AMERICAN HOME PRODUCTS CORP AND SMITHKLINE BEECHAM PLC WITH BROAD EXPOSURE TO THE ELDERLY MARKET THE REBATE IS AN AUTOMATIC DISCOUNT AND IT HURTS GRUNTAL'S MR SAKS SAYS BUT I DON'T SEE WALMART SUFFERING OR TOYS R' US SUFFERING THEY'RE GOING TO GET AMPLY REWARDED WITH HIGHER VOLUME MR DALTON SAYS HEALTHCARE CHANGES ARE THE LEAST OF THE DRUG INDUSTRY'S PROBLEMS MANAGEDCARE ORGANIZATIONS POSE A FAR GREATER THREAT TO INDUSTRY PROFITABILITY BECAUSE THEY ALREADY ARE DOING WHAT PRESIDENT CLINTON ONLY HOPES TO ACCOMPLISH DRIVE DOWN DRUG PRICES PUBLIC POLICY WILL TAKE A COUPLE OF YEARS TO UNFOLD BUT THE PRIVATESECTOR PRESSURE IS HERE NOW AND IT'S ACCELERATING AND INTENSIFYING NOW HE SAYS THE INDUSTRY IS FIGHTING THE ADMINISTRATION'S PROPOSALS OUT OF FEAR THESE CHANGES OPEN THE DOOR FOR MOREONEROUS REGULATIONS LATER ANALYSTS AND OTHERS SAY IF YOU WANT TO GET IN THE WORRYING MODE THIS COULD BE VIEWED AS THE FIRST STEP TOWARD CONTROLLING PRICES ACROSS THE BOARD DR PENHOET OF CHIRON SAYS BUT HE ADDS I THINK IT'S UNLIKELY THAT THOUGHTFUL PEOPLE WILL WANT TO STIFLE INNOVATION FOR ANY LONG PERIOD OF TIME 9310290008 931029 BUSINESS BRIEF RYLAND GROUP INC THIRDQUARTER LOSS TOTALS 226 MILLION ON RESERVE RISE RYLAND GROUP INC REPORTED A THIRDQUARTER NET LOSS OF 226 MILLION OR 150 A SHARE A RESULT OF THE HOMEBUILDER'S RECENT DECISION TO INCREASE RESERVES AGAINST POSSIBLE WRITEDOWNS OF ITS INVENTORY MOSTLY IN CALIFORNIA A YEAR EARLIER NET INCOME WAS 97 MILLION OR 58 CENTS A SHARE REVENUE FELL 28 TO 3788 MILLION FROM 3898 MILLION THE COLUMBIA MD COMPANY CITING STRONG MORTGAGE OPERATIONS PROJECTED ONLY A SMALL NET LOSS FOR THE YEAR FOR 1992 RYLAND REPORTED NET OF 275 MILLION OR 166 A SHARE ON REVENUE OF 144 BILLION RYLAND SAID THE THIRDQUARTER LOSS REFLECTED A 45 MILLION PRETAX PROVISION RELATED TO THE INVENTORIES ITS STOCK ROSE 25 CENTS OR 13 TO CLOSE AT 1925 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9310290007 931029 BUSINESS BRIEF MONARCH MACHINE TOOL CO COMPANY SEES IMPROVEMENT IN SHIPMENTS AND EARNINGS MONARCH MACHINE TOOL CO CITING A HEAVIER SHIPMENT SCHEDULE SAID IT EXPECTS THE FOURTHQUARTER TO SHOW IMPROVEMENT IN BOTH SHIPMENTS AND EARNINGS FROM THE THIRDQUARTER ROBERT J SIEWERT PRESIDENT OF THE SIDNEY OHIO COMPANY SAID THE OUTLOOK FOR THE CAPITAL GOODS SECTOR OF THE ECONOMY IN 1994 IS BRIGHT THE COMPANY POSTED EARNINGS FOR THE THIRDQUARTER OF 47595 OR ONE CENT A SHARE ON SALES OF 203 MILLION COMPARED WITH A YEARAGO LOSS OF 750732 OR 20 CENTS A SHARE ON SALES OF 18 MILLION IN THE YEARAGO FOURTHQUARTER MONARCH POSTED A LOSS OF 62 MILLION OR 163 A SHARE REFLECTING A PRETAX CHARGE OF 85 MILLION FOR THE CLOSURE OF A UNIT IN ENGLAND SALES WERE 194 MILLION 9310290006 931029 WHO'S NEWS TIGER MANAGEMENT PICKS COX TO HEAD INVESTMENT FUND BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ARCHIBALD COX JR WHO LEFT HIS POSITION AS PRESIDENT OF THE FORMER FIRST BOSTON CORP IN JULY IS MOVING TO HONG KONG AS CHAIRMAN OF AN INTERNATIONAL INVESTMENT FUND FOR TIGER MANAGEMENT CORP TIGER A NEW YORK HEDGE FUND MANAGER WITH 65 BILLION UNDER MANAGEMENT PLANS TO INVEST AN ADDITIONAL 500 MILLION TO 1 BILLION IN COMPANIES AND BUSINESS VENTURES IN CHINA SOUTHEAST ASIA LATIN AMERICA AND EASTERN EUROPE THAT FUND WILL BE RUN BY MR COX THE MOVE FITS IN WITH THE BROADER EVEN FEVERISH PUSH BY WALL STREET FIRMS INTO ASIA WIDELY CONSIDERED TO BE THE GROWTH MARKET OF THE NEXT DECADE WE SEE ENORMOUS OPPORTUNITIES IN THESE COUNTRIES BUT WE CAN'T INVEST IN THEM BECAUSE THEY HAVE NO STOCK MARKETS SAID JOHN GRIFFIN PRESIDENT OF TIGER THAT'S WHAT THIS FUND IS FOR AND ARCHIE WHO'S HAD A GREAT CAREER AS ALMAKER BOTH AT MORGAN STANLEY AND FIRST BOSTON IS GOING TO HANDSON MANAGE IT THE JOB MIGHT SEEM TO BE AN UNLIKELY FIT FOR MR COX 53 YEARS OLD WHOSE REPUTATION IS AS AN ADMINISTRATOR AND INVESTMENT BANKER BUT IT'S A PERFECT FIT HE SAID ADDING TIGER'S SKILLS AS AN ASTUTE INVESTOR AND MY SKILLS ARE VERY COMPATIBLE MR COX REACHED AT HIS FIRST BOSTON OFFICE IN NEW YORK SAID THAT HE HAD BEEN AN INVESTOR IN TIGER PRIOR TO JOINING THE FIRM AS FOR THE PLANNED MOVE TO HONG KONG HE COMMENTED IF YOU LOOK AROUND THE WORLD AT WHERE ECONOMIC GROWTH WILL BE IN THE REST OF THE DECADE YOU SEE HIGH RATES OF GROWTH IN MALAYSIA INDONESIA THAILAND VIETNAM AND CHINA I'M VERY EXCITED MR COX SON OF FORMER WATERGATE PROSECUTOR ARCHIBALD COX HAS SUBSTANTIAL INTERNATIONAL CONTACTS FROM HIS 24 YEARS AS A SENIOR INTERNATIONAL EXECUTIVE AT MORGAN STANLEY & CO WHILE AT THAT FIRM'S NEW YORK AND LONDON OFFICES HE LED MORGAN STANLEY'S RISE TO UPPER RANKS OF INVESTMENT BANKS IN EUROPEAN MARKETS THE TIGER FUND'S CAPITAL WILL BE RAISED BY OFFERING IT TO TIGER'S CURRENT LIMITED PARTNERS AND INSTITUTIONAL INVESTORS MR GRIFFIN SAID TIGER FOUNDED IN 1980 IS RUN BY PROMINENT STOCKPICKER JULIAN ROBERTSON JR MR COX WAS OUSTED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FIRST BOSTON CORP LATER RENAMED CS FIRST BOSTON A UNIT OF CREDIT SUISSE BANK IN A MANAGEMENT SHAKEUP FOLLOWING A SLEW OF DEFECTIONS AT THE FIRM CS FIRST BOSTON HAS EFFECTIVELY ABANDONED ITS FIVEYEAR BID TO BECOME A GLOBAL TRIUMVIRATE OF INVESTMENTBANKING UNITS THE COMPANY CONSOLIDATED THE UNITS ALONG PRODUCT LINES ELIMINATING THE NEED FOR A PRESIDENT OF A US UNIT 9310290004 931029 FIRST FIDELITY SETS PURCHASE LAWRENCEVILLE NJ FIRST FIDELITY BANCORP SAID IT AGREED TO ACQUIRE SAVINGS BANK OF ROCKLAND COUNTY BASED IN SPRING VALLEY NY FOR 59 MILLION THE TRANSACTION IS EXPECTED TO BE COMPLETED DURING THE FIRST QUARTER OF 1994 FIRST FIDELITY A BANKING CONCERN SAID FIRST FIDELITY WHICH LISTS 326 BILLION IN ASSETS SAID THE TARGET COMPANY HAS 185 MILLION IN ASSETS 9310290003 931029 HOW THE DATA WERE ANALYZED TO EXAMINE THE ROLE OF DRIVERS' AGES IN CRASHES AND DEATHS THE WALL STREET JOURNAL ANALYZED 190167 FATAL MOTORVEHICLE ACCIDENTS FOR THE YEARS 1988 THROUGH 1992 AS REPORTED TO THE DEPARTMENT OF TRANSPORTATION THE ACCIDENTS INVOLVED 318424 VEHICLES AND 514690 DRIVERS PASSENGERS PEDESTRIANS AND BICYCLISTS BY LAW ALL FATAL MOTORVEHICLE ACCIDENTS MUST BE REPORTED TO DOT WHICH COMPILES THE INFORMATION INTO ITS FATAL ACCIDENT REPORTING SYSTEM A COMPUTERIZED DATABASE FOR EACH ACCIDENT FARS PROVIDES SCORES OF DETAILS INCLUDING THE AGE AND SEX OF ALL PEOPLE INVOLVED THE TIME DATE PLACE ROAD AND WEATHER CONDITIONS AND WHAT FACTORS CONTRIBUTED TO EACH DRIVER'S ROLE IN THE EVENT BECAUSE FARS IS A CENSUS OF FATAL ACCIDENTS AND NOT JUST A SAMPLE THE TRANSPORTATION DEPARTMENT SAYS IT IS THE MOST RELIABLE DATA TO USE TO ANALYZE PATTERNS FOR ALL CRASHES INCLUDING THOSE IN WHICH NO ONE DIES THE JOURNAL GROUPED THE FATAL ACCIDENTS BY THE AGES OF DRIVERS INVOLVED AND THEN CHARTED HOW PARTICULAR FACTORS IN AN ACCIDENT SUCH AS FAILURE TO YIELD BECAME MORE OR LESS PREVALENT FOR DRIVERS OF DIFFERENT AGES THE JOURNAL ALSO USED FARS DATA TO CALCULATE THE NUMBER OF FATAL ACCIDENTS BY DRIVERS' AGES FOR EACH STATE INFORMATION ABOUT EACH STATE'S LICENSERENEWAL REQUIREMENTS WAS OBTAINED DIRECTLY FROM LICENSING OFFICIALS IN EACH STATE STATISTICS REGARDING TOTAL ACCIDENTS INCLUDING THOSE IN WHICH NO ONE DIED WERE BASED ON DATA FROM DOT'S GENERAL ESTIMATES SYSTEM A DATABASE OF CRASHNUMBER ESTIMATES BASED ON A SAMPLING OF 45000 ACCIDENTS IN 26 STATES CRASH RATES USED IN THE ARTICLE WERE CALCULATED ON THE BASIS OF MILES DRIVEN THE MILEAGE DATA FOR EACH AGE GROUP WAS OBTAINED FROM THE TRANSPORTATION DEPARTMENT'S 1990 NATIONAL PERSONAL TRANSPORTATION SURVEY WHICH HASN'T BEEN UPDATED FOR THIS REASON ALL CRASH RATES CITED IN THE ARTICLE ARE FROM 1990 SOME EXPERTS CALCULATE CRASH RATES BASED ON THE POPULATION OF A GIVEN AGE GROUP OR THE NUMBER OF LICENSED DRIVERS WITHIN THAT GROUP THE JOURNAL CHOSE NOT TO USE THESE METHODS BECAUSE THEY UNDERSTATE THE CRASH RISK OF THE ELDERLY ELDERLY PEOPLE ARE MUCH LESS LIKELY TO HAVE DRIVER'S LICENSES THAN YOUNGER PEOPLE AND THE ELDERLY WHO DO HAVE LICENSES ARE LESS LIKELY TO DRIVE SEE RELATED ARTICLE CAR TROUBLE OLDER DRIVERS POSE GROWING RISK ON ROADS AS THEIR NUMBERS RISE THEY CRASH MORE THAN MANY YET TAKING AWAY WHEELS LEADS TO ISOLATION ANGER A MAN RUNS OVER HIS WIFE WSJ OCT 29 1993 9310290002 931029 REVIEW & OUTLOOK EDITORIAL GULF WAR SYNDROME SOME OF THE HONORABLE MEN AND WOMEN WHO THREE YEARS AGO DEFEATED THE BEAST OF BAGHDAD ARE NOW REPORTING MYSTERIOUS AILMENTS GULF WAR SYNDROME CONSISTS OF A COMBINATION OF MEMORY LOSS MUSCLE PAINS CHRONIC COUGHING AND BLEEDING RECTUMS BEFORE THE WHOLE ISSUE ERUPTS INTO ANOTHER AGENT ORANGE FIASCO THERE'S A CRYING NEED FOR SOME REAL SCIENCE THE PRINCIPAL SUSPICION IS THAT THE ILLNESS REPRESENTS DAMAGE FROM LOWLEVEL EXPOSURE TO CHEMICAL TOXINS LAST MONTH NOWRETIRING SEN DON RIEGLE PUBLISHED A PAMPHLET WITH ANECDOTAL EVIDENCE SUGGESTING THAT CONTRARY TO OFFICIAL ACCOUNTS IRAQ DID TRY ISOLATED CHEMICAL ATTACKS THE REPORT SAID 77 OF THE MEMBERS OF ONE PLATOON REPORTED THE ILLNESS AND THAT FOLLOWING THE EXPLOSION OF A SCUD MISSILE ON JAN 20 1991 MANY IN THE PLATOON EXPERIENCED BURNING SENSATIONS COMMONLY ASSOCIATED WITH THE USE OF CHEMICAL WEAPONS REP STEVEN BUYER HIMSELF A GULF WAR VETERAN WHO HAS SINCE BEEN STRICKEN WITH REPEATED BOUTS OF FLU PNEUMONIA AND OTHER SYMPTOMS HAS BEEN DOING HIS BEST TO TURN THE ISSUE INTO A CAUSE CELEBRE THIS INFORMATION IS CERTAINLY UNSETTLING AND DESERVES A SERIOUS INVESTIGATION IN THE INTERESTS OF BOTH JUSTICE TO THE VETERANS AND LEARNING HOW TO DEAL WITH FUTURE POSSIBLE ATTACKS THERE'S A PROFOUND QUESTION THOUGH OF WHETHER OUR SYSTEM IS CAPABLE OF DEALING WITH SUCH AN ISSUE INDEED THE NEVERENDING INVESTIGATION OF AGENT ORANGE SHOULD BE A MODEL FOR HOW NOT TO CONDUCT SUCH RESEARCH A CLASSACTION LAWSUIT FILED IN 1979 AGAINST THE MANUFACTURERS OF AGENT ORANGE WAS NOT SETTLED UNTIL 1984 AND NOT ONE CENT FROM THE 180 MILLION SETTLEMENT REACHED ANY VETERANS UNTIL 1989 IN THE MEANTIME SCADS OF PLAINTIFFS LAWYERS SEARCHED FRANTICALLY FOR CLIENTS AND COLLECTED HEFTY FEES ONE RECEIVED NEARLY 1 MILLION FOR TWO YEARS OF WORK IN MARCH 1991 THE SAGA WAS REINVIGORATED BY THE FILING OF A CLASSACTION SUIT IN BEAUMONT TEXAS OVER AGENT ORANGERELATED HEALTH PROBLEMS ALL THIS EVEN THOUGH A 1984 STUDY BY THE CENTERS FOR DISEASE CONTROL FOUND NO CONNECTION BETWEEN EXPOSURE TO AGENT ORANGE AND THE FREQUENCY OF BIRTH DEFECTS A SIMILAR STUDY BY THE ARMED FORCES INSTITUTE OF PATHOLOGY A FEW YEARS BACK FAILED TO IDENTIFY A LINK BETWEEN AGENT ORANGE AND SOFTTISSUE SARCOMA IT'S NOT CLEAR THAT ANY AMOUNT OF SCIENCE CAN DETER THE TORTLAW VULTURES BUT THEY WILL CERTAINLY THRIVE IN THE ABSENCE OF SCIENCE BUT DO WE HAVE A BODY TO DO ANY SUCH STUDY IN A WAY THAT'S CREDIBLE THE PENTAGON ITSELF HAS TOO MUCH AT STAKE IN ITS POSITION THAT CHEMICAL WEAPONS WERE NOT USED THE VETERANS' ADMINISTRATION IS LIKELY TO GO CROSSEYED LOOKING AT ITS BUDGET AND ITS CONSTITUENTS THE VA HAS CALLED FOR AN INDEPENDENT INVESTIGATION OF THE GULF WAR SYNDROME BUT INDEPENDENT MEANS DIFFERENT THINGS TO DIFFERENT FOLKS THE VA PREFERENCE SEEMS TO BE THE INSTITUTE OF MEDICINE AT THE NATIONAL ACADEMY OF SCIENCES BUT ITS RECENT REPORTS ON AGENT ORANGE AND MUSTARD GAS FAILED TO IMPRESS THE SCIENTIFIC COMMUNITY A REPORT SAYING WEDON'TKNOWBUTMAYBE WOULD OPEN THE DOOR FOR ALL CLAIMS AND SET THE LAWYERS SWARMING ON THE RECENT RECORD A BETTER CHOICE WOULD BE THE NAS COMMITTEE ON TOXICOLOGY WHICH HAS BEEN CONDUCTING CHEMICALRELATED STUDIES OF MILITARY ISSUES DATING BACK TO THE KOREAN WAR AND HAS EARNED A REPUTATION FOR INDEPENDENCE AND QUALITY RESEARCH THE COT'S RECENT STUDY CONCLUDING THAT FLUORIDATED WATER IS NOT CARCINOGENIC WHICH ALIENATED THE ANTIFLUORIDE FOLKS HIGHLIGHTS THEIR INDEPENDENT STREAK SOME OF THOSE WHO'D LIKE TO ADVANCE CLAIMS WE UNDERSTAND ARE LOBBYING TO KEEP THE GULF WAR ILLNESS INVESTIGATION AWAY FROM THE COMMITTEE ON TOXICOLOGY CERTAINLY VETERANS DESERVE TO HAVE THEIR FEARS AND SUSPICIONS TAKEN SERIOUSLY ESPECIALLY GIVEN THE STERLING PERFORMANCE OF OUR TROOPS IN THE GULF BUT THE HISTORY OF AGENT ORANGE SHOWS THAT SYMPATHY AND THE ENERGY OF THE TORT BAR CAN OVERWHELM SCIENTIFIC EVIDENCE IT WOULD BE A TRIBUTE TO VETERANS IF THE SYSTEM THEY FOUGHT TO PROTECT COULD COME UP WITH AN HONEST AND CREDIBLE WAY TO LEARN WHETHER GULF WAR SYNDROME ACTUALLY EXISTS AND IF SO WHAT MAY HAVE CAUSED IT 9310290001 931029 SMALL STOCK FOCUS STOCK RALLY FIZZLES AS DAY CONTINUES BUT PRICES SHOW MINOR GAINS IN SESSION BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK A SMALLCOMPANY STOCK RALLY YESTERDAY FIZZLED AS THE DAY WORE ON ALTHOUGH PRICES SHOWED MINOR GAINS BUT BIG BOARD SHARES SURGED TO NEW HIGHS ON POSITIVE ECONOMIC NEWS AND SOME FAVORABLE EARNINGS REPORTS THE DOW JONES INDUSTRIAL AVERAGE BROKE ITS RECORD CLOSE OF 367361 SET MONDAY SOARING 2320 POINTS TO END AT 368786 THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED OVER THE COUNTER AND ON THE MAJOR EXCHANGES INCHED UP 092 OR 036 TO 25688 ON NASDAQ THE COMPOSITE INDEX ADDED 161 TO FINISH AT 77349 AFTER FALLING STEADILY THROUGHOUT THE AFTERNOON THIS MARKET'S STILL FOR SALE SAID JIM WHIPPLE SENIOR VICE PRESIDENT OF NASDAQ TRADING AT LEHMAN BROTHERS WE'RE STILL SEEING SELLERS WALKING IN TO TAKE PROFITS MR WHIPPLE SAID WEAKER TECHNOLOGY STOCKS PRESSURED PRICES IN THE AFTERNOON IN THE TECHNOLOGY GROUP ISG INTERNATIONAL SOFTWARE GROUP BASED IN ISRAEL LOST 3/4 TO 7 1/4 SEATTLEBASED ALDUS EASED 1/2 TO 22 1/4 AND QUANTUM OF MILPITAS CALIF FELL 1/4 TO 12 3/4 SMALLER ISSUES HAD SOME PROBLEMS TRYING TO RALLY AFTER THE DAMAGE THAT'S BEEN DONE RECENTLY SAID STEVEN GOLDMAN A MARKET STRATEGIST AT WEEDEN & CO THE RUSSELL 2000 FOR INSTANCE STILL LIES 119 FROM ITS ALLTIME HIGH OF 25998 MR GOLDMAN SAID THE MARKET'S LEADERSHIP AT THIS POINT HAS SWITCHED OVER TO THE CYCLICALS WHICH PROPPED UP YESTERDAY'S ADVANCE ON THE NEW YORK STOCK EXCHANGE THE INTEREST IS LACKING FOR THE SMALLER STOCKS HE SAID THIS IS TYPICAL IN THE SECOND STAGE OF A MATURE BULL MARKET WHICH I FEEL WE'RE IN TOPPING THE NASDAQ'S MOST ACTIVE LIST WAS MASLAND HOLDINGS WITH VOLUME OF ABOUT 48 MILLION SHARES THE CARLISLE PA COMPANY'S SHARES FINISHED UNCHANGED FROM THEIR OFFERING PRICE YESTERDAY OF 17 EACH MASLAND MAKES CARPETING INSULATOR AND OTHER PRODUCTS FOR AUTOMOBILES AMONG BIG MOVERS VIRGINIA MDBASED ALLIED RESEARCH DROPPED 2 1/2 TO 11 1/4 ON THE AMERICAN STOCK EXCHANGE THE AMMUNITIONS AND WEAPONSSYSTEMS COMPANY SAID ITS PROPOSED MERGER WITH FIRST ALLIED AN INVESTMENT FIRM EXPIRED YESTERDAY AFTER THE TWO FAILED TO AGREE ON TERMS TO EXTEND A DUEDILIGENCE DEADLINE THE WILDFIRES THAT HAVE SWEPT THROUGH SOUTHERN CALIFORNIA BOOSTED INVESTOR INTEREST IN ELCOR CORP WHICH ROSE 2 1/4 TO 22 1/4 ON THE NEW YORK STOCK EXCHANGE THE DALLAS COMPANY MAKES ROOFING AND INDUSTRIAL PRODUCTS ELCOR'S CHIEF FINANCIAL OFFICER SAID THE CONCERN WHICH HAS A STRONG POSITION IN CALIFORNIA WILL SEE ADDED BUSINESS FROM THE FIRES ALTHOUGH IT WON'T LIKELY BE MATERIALLY SIGNIFICANT RIGHT AWAY ALSO ON THE BIG BOARD LA QUINTA MOTOR INNS GAINED 1 5/8 TO 13 AND LA QUINTA INNS FELL 3/4 TO 30 1/2 THE COMPANIES HAVE SIGNED A DEFINITIVE AGREEMENT UNDER WHICH LA QUINTA INNS THROUGH ITS SUBSIDIARIES WILL ACQUIRE 35 MILLION UNITS OF LA QUINTA MOTOR INNS THAT IT DOESN'T ALREADY OWN FOR 13 A UNIT NEWS THAT LESLIE'S POOLMART CHATSWORTH CALIF SECURED A 10 MILLION CREDIT LINE AT THE PRIMEINTEREST RATE FROM A WELLS FARGO UNIT BOOSTED ITS STOCK 1 1/2 TO 9 THE COMPANY IS A SPECIALTY RETAILER OF SWIMMINGPOOL SUPPLIES AND RELATED PRODUCTS A POSITIVE STORY IN TODAY'S INVESTOR'S BUSINESS DAILY SPARKED A RALLY IN SHARES OF RENAL TREATMENT CENTERS WHICH FINISHED 1 3/4 HIGHER AT 20 3/4 THE BERWYN PA PROVIDER OF DIALYSIS TREATMENTS IS QUOTED AS SAYING THAT IT IS ESSENTIALLY IMMUNE TO HEALTHCARE REFORM IN EARNINGS NEWS AMERICAN BANKERS INSURANCE GROUP RETREATED 3 3/8 TO 27 3/8 THE MIAMI COMPANY SAID ITS THIRDQUARTER EARNINGS FELL SLIGHTLY TO 56 CENTS A SHARE FROM 58 CENTS A YEAR EARLIER ON THE AMERICAN STOCK EXCHANGE CHAMPION ENTERPRISES JUMPED 2 TO 18 3/8 THE AUBURN HILLS MICH MAKER OF MANUFACTURED HOMES RECREATION VEHICLES MIDSIZE BUSES AND MOTOR HOMES SAID ITS THIRDQUARTER EARNINGS CLIMBED TO 53 CENTS A SHARE IN THE YEAREARLIER PERIOD THE COMPANY POSTED INCOME FROM CONTINUING OPERATIONS OF 27 CENTS HYDE ATHLETIC BASED IN PEABODY MASS FELL 2 1/4 TO 8 1/2 THE ATHLETICFOOTWEAR CONCERN SAID ITS THIRDQUARTER EARNINGS IMPROVED TO 27 CENTS A SHARE FROM 16 CENTS THE YEAR EARLIER BUT THE COMPANY SAID IT EXPECTS FOURTHQUARTER EARNINGS TO FALL BELOW THE 29 CENTS REPORTED A YEAR EARLIER NASDAQ NATIONAL MARKET STOCKS THAT HAVE REACHED NEW HIGHS FOR THE YEAR TO DATE TOTALED 150 WHILE 33 ISSUES REACHED NEW LOWS 9310290119 930819 CLINTON'S ILLUSION SPIRIT OF THE '60S BY IRVING KRISTOL WHY HAS PRESIDENT CLINTON BEEN DOING SO POORLY HE IS OBVIOUSLY A VERY INTELLIGENT MAN AND HE DOES NOT LACK FOR POLITICAL EXPERIENCE YET THE OVERWHELMING IMPRESSION IS THAT SO FAR HIS HAS BEEN A BUMBLING AND MESSY PRESIDENCY I THINK THERE ARE TWO MAIN REASONS FOR THIS BOTH HAVING TO DO WITH THE GENERATIONAL ETHOS HE SHARES WITH HIS WIFE AND MOST OF HIS WHITE HOUSE STAFFERS THE FIRST REASON IS THE GRAND ILLUSION THAT PREVAILS AMONG THEM ALL TO THE EFFECT THAT HE HAS BEEN ELECTED TO PRESIDE OVER NOTHING LESS THAN A COUNTERREVOLUTION AGAINST THE DECADE OF THE REAGANBUSH ADMINISTRATIONS THE FACT THAT HE RECEIVED ONLY 43 OF THE VOTE IS CASUALLY DISMISSED AS AN ELECTORAL ANOMALY THEY PREFER TO BELIEVE THAT WHEN THE AMERICAN PEOPLE VOTED FOR CHANGE THEY IMPLICITLY VOTED FOR THE KIND OF LEFTLIBERAL AGENDA THE CLINTON PEOPLE ACQUIRED ALONG WITH THEIR UNIVERSITY REGISTRATION IT IS REALLY IMPOSSIBLE FOR THEM TO THINK OTHERWISE WE ARE TALKING ABOUT A SEGMENT OF THIS GENERATION FOR WHOM REALITY IS DEFINED BY THE COUNTERCULTURAL OUTLOOK THEY ABSORBED IN THEIR UNIVERSITY YEARS AND IN LAW SCHOOL TOO AS WELL AS IN THE BOOKS AND MAGAZINES THEY READ THE MOVIES THEY MOST PARTICULARLY LOVED THE SONGS THEY MOST ENJOYED LISTENING TO OR SINGING THEY REMIND ONE OF THE NEW YORKER WRITER WHO WAS ASTONISHED WHEN RONALD REAGAN WAS ELECTED IN 1980 SINCE SHE DIDN'T KNOW ANYONE WHO HAD VOTED FOR MR REAGAN THE CLINTONITES DON'T KNOW ANY SUCH PEOPLE EITHER FOR THEM THE DECADE OF THE 1980S WAS ONE IN WHICH THE AMERICAN PEOPLE WERE BLINDED AND MISLED BY OFFICIALLY SANCTIONED GREED NOW THE PEOPLE ARE TO EXPERIENCE A POLITICAL AND SPIRITUAL REBIRTH UNDER THE GUIDANCE OF THE UNCORRUPTED THE SPIRIT OF THE 1960S WILL RISE AND RULE AGAIN AT THE BEGINNING OF THIS MONTH PETER PAUL & MARY PLAYED TO A SOLDOUT AUDIENCE OF 16000 AT WOLF TRAP IN THE WASHINGTON AREA THE SECRETARY OF HEALTH AND HUMAN SERVICES DONNA SHALALA WAS THERE ALONG WITH A FAIR SAMPLING OF CLINTONITES FROM BOTH THE EXECUTIVE AND CONGRESSIONAL BRANCHES AS REPORTED BY LAURA SESSIONS STEPP IN THE AUG 8 WASHINGTON POST AS BOTH PLATO AND CONFUCIUS OBSERVED LET ME WRITE THE SONGS THE PEOPLE SING AND YOU WRITE THE LAWS THE SONG WILL ALWAYS PREVAIL THIS HELPS EXPLAIN SOME OF THE OTHERWISE INEXPLICABLE PECULIARITIES OF THE CLINTON CROWD FOR INSTANCE THEIR CONVICTION THAT AN ANTIBIGBUSINESS AND ANTIRICH PROGRAM WILL STRIKE A RESPONSIVE CHORD AMONG THE AMERICAN PEOPLE WHERE DID THEY GET THIS IDEA THEY DIDN'T GET IT FROM THE OPINION POLLS EXCEPT WHERE THOSE POLLS WERE ARTFULLY CONSTRUCTED BY SOME OF OUR YOUNGER POLLSTERS TO PRODUCE THIS RESULT THEY DIDN'T GET IT FROM THE DEMOCRATIC LEADERSHIP IN CONGRESS OR IN THE STATES THE DIDN'T EVEN GET IT FROM THE MEDIA UNLESS THEY SUBSCRIBED TO THE NATION OR TIKKUN WHICH THEY MAY WELL HAVE DONE THEY GOT IT FROM THE LEFTWING SONGS SOME DATING BACK TO THE 1930S THAT THEY LEARNED IN THE 1960S THE DISTRIBUTION OF WEALTH AND INCOME IN THE US IS ALMOST NEVER A REAL POLITICAL ISSUE TAKING A FARBACK SEAT TO THE DEFICIT JOB GROWTH EVEN FOREIGN POLICY AMERICANS EXPECT TO IMPROVE THEIR CONDITION BY ECONOMIC GROWTH AND THEY UNDERSTAND THAT THEY DON'T CREATE THIS GROWTH THOUGH THEIR HARD WORK MAY SUSTAIN IT ECONOMIC GROWTH IS CREATED BY ECONOMIC ACTIVISTS BY ENTREPRENEURS INDIVIDUAL OR CORPORATE WHO IF THEY SUCCEED WILL BECOME WEALTHY LOOK AT THE CASE OF ROSS PEROT LOOK AT THE SYMPATHY HIS SELFFINANCED POLITICAL MOVEMENT HAS GENERATED AMONG ORDINARY AMERICANS ONE GATHERS THAT THE WHITE HOUSE'S RESPONSE TO THE PEROT PHENOMENON IS SOMETHING LIKE TOLERANT CONTEMPT HIS FOLLOWERS THEY FIRMLY BELIEVE ARE MISGUIDED BOOBS WHO HAVE NEVER SUNG THE POLITICALLY CORRECT SONGS DO NOT READ THE POLITICALLY CORRECT BOOKS AND WHO ARE IN NEED OF POLITICAL THERAPY WHICH THIS ADMINISTRATION IS READY TO PROVIDE THEY THINK THE SAME OF THE AMERICAN PEOPLE AS A WHOLE WHO INCOMPREHENSIBLY SHOWED SO LITTLE SUPPORT FOR THEIR TAXTHERICH BUDGET THIS IDEA OF POLITICAL THERAPY AND PERSONAL THERAPY TOO OF COURSE IS CENTRAL TO CONTEMPORARY LIBERALISM AND IS THE SECOND REASON WHY THIS ADMINISTRATION SEEMS OUT OF TOUCH WITH REALITY ALL THERAPIES ARE INHERENTLY MANIPULATIVE AND WHILE THE THERAPEUTIC ETHOS IS SO PERSUASIVE THESE DAYS THAT MANY WHO REGARD THEMSELVES AS CONSERVATIVE ARE IMBUED WITH IT IT IS AT THE CORE OF THE LIBERAL WORLDVIEW INDEED SO DEEPLY INGRAINED IS IT THAT MANIPULATIVE STRATEGIES ARE NOT EVEN FELT TO BE SUCH BY THOSE DOING THE THERAPEUTIC MANIPULATION ONE ASPECT OF THIS STRATEGY IS THE IMPORTANCE ASCRIBED TO COMMUNICATION BETWEEN HUSBANDS AND WIVES PARENTS AND CHILDREN EMPLOYERS AND EMPLOYEES RACES AND ETHNIC GROUPS GOVERNMENT AND THE GOVERNED IN THIS LAST CASE INEVITABLY THE COMMUNICATION IS ONEWAY FROM GOVERNMENT TO THE GOVERNED THE CLINTONITES HAVE CONVINCED THEMSELVES THAT THIS WAS THE SECRET OF RONALD REAGAN'S SUCCESS FROM THEIR POINT OF VIEW HIS POLICIES SHOULD NEVER HAVE BEEN POPULAR THAT THEY WERE HAS BEEN EXPLAINED FOR THEM BY A LIBRARY OF BOOKS AND MAGAZINE ARTICLES DEPICTING MR REAGAN AS THE GREAT COMMUNICATOR THE TEFLON PRESIDENT AN ACTORTURNEDPRESIDENT WHO BEWITCHED THE AMERICAN PEOPLE WITH WORDS AND THEIR PRESENTATION NOT WITH DEEDS THE CLINTONITES THEN HAVE SET OUT TO SELL THEIR PROGRAMS TO THE PEOPLE AN AMBITION THAT DEFINES THE PRESIDENCY AS AN OFFICE THAT IS INVOLVED IN A PERMANENT CAMPAIGN FOR POLITICAL SOVEREIGNTY BEING PRESIDENTIAL HAS LOST IT MEANING THE THERAPEUTICMANIPULATIVE ETHOS IS EVIDENT AND WILL SOON BE MORE EVIDENT IN THE REGULATORY PASSIONS THAT DOMINATE THIS ADMINISTRATION THESE PASSIONS ARE DIRECTED NOT ONLY AGAINST THE HOARY ENEMIES BIG BUSINESS SPECULATORS ETC BUT EVEN MORE EMPHATICALLY AGAINST THE WHOLE EXISTING PATTERN OF PERSONAL AND PROFESSIONAL RELATIONS ALREADY THE SPIRIT OF THE '60S HAS MADE FLIRTING A POSSIBLE CRIMINAL OFFENSE IS ENCOURAGING CHILDREN TO SUE THEIR PARENTS IF THEY ARE SPANKED IS FINDING ALL SORTS OF NOVEL PSYCHOLOGICAL HAZARDS IN THE WORKPLACE ANY WORKPLACE THAT ARE GROUNDS FOR LEGAL ACTION AGAINST EMPLOYERS SINCE THIS IS THE SPIRIT THAT PERVADES THE CLINTON ADMINISTRATION ONE CAN EXPECT A STEADY FLOW OF SUCH INTERVENTIONS IN TRADITIONAL ARRANGEMENTS NOW SCORNFULLY DISMISSED AS THE STATUS QUO THE SPIRIT WAS NEATLY CAPTURED BY A STORY IN THE AUG 8 NEW YORK TIMES COMMENTING ON THE ABSOLUTE BAN ON SMOKING IN RESTAURANTS THAT IS NOW THE LAW IN LOS ANGELES IT BRIEFLY PROFILES ROGER DIAMOND A SUCCESSFUL CRIMINAL LAWYER WHO HAS BEEN AN ACTIVIST IN THE ANTISMOKING CAMPAIGN MR DIAMOND WAS EXPANSIVE THE OTHER EVENING RELAXING AT HOME IN SWEAT CLOTHES AFTER HIS YOGA LESSON WITH A GIANT BOWL OF NOSALT NO BUTTER POPCORN ON HIS LAP NO WE DON'T NOR DO MOST OF US WANT TO LIVE IN SUCH A SOCIETY ONE IN WHICH THE VERY IDEA OF PERSONAL FREEDOM WHICH INCLUDES THE FREEDOM TO BE IMPERFECT WOULD BE DEVOID OF MEANING THE CLINTONITES ARE LIVING IN A TIME WARP THE BONES OF THE '60S MAY RATTLE NOISILY BUT THESE BONES SHALL NOT RISE AGAIN ON THE CONTRARY THERE IS PLENTY OF EVIDENCE THAT IN ALL THE WESTERN WELFARESTATE DEMOCRACIES A SULLEN SPIRIT OF RESISTANCE IS ON THE RISE WHAT IS BEING RESISTED IS THE EVERINCREASING MICROMANAGEMENT OF PERSONAL AND PROFESSIONAL LIVES BY THE LIBERALLEFT WELFARE STATE THERE IS RESENTMENT AGAINST TAX INCREASES ON ANYONE NOT BECAUSE PEOPLE ARE STUPID OR UNINSTRUCTED BUT BECAUSE THE MONEY GOES TO THE STATE IN THE FIRST PLACE DISTRUST OF GOVERNMENT PROVOKED BY AN OVERBLOWN WELFARE STATE IS THE MOST STRIKING FEATURE OF POLITICAL LIFE IN ALL WESTERN DEMOCRACIES TODAY THE CLINTONITES ARE INCAPABLE OF UNDERSTANDING THIS WHY SHOULD ORDINARY PEOPLE FEEL SO UNEASY AT MORE TAXES ON THE WELLTODO THE REASON HAS TO DO WITH PERSONAL FREEDOM AND PERSONAL AUTONOMY WHICH ARE SEEN TO BE AT RISK AS THE STATE ACQUIRES MORE REVENUES THE CLINTONITES BELIEVE WITH ALL THEIR HEARTS THAT THE PASSION FOR ECONOMIC EQUALITY IS STRONGER THAN THE DESIRE FOR PERSONAL FREEDOM THE 1990S WILL DEMONSTRATE JUST HOW WRONG THEY ARE MR KRISTOL AN AMERICAN ENTERPRISE INSTITUTE FELLOW COEDITS THE PUBLIC INTEREST AND PUBLISHES THE NATIONAL INTEREST HE IS A MEMBER OF THE JOURNAL'S BOARD OF CONTRIBUTORS SEE RELATED LETTERS LETTERS TO THE EDITOR IT'S BLOWIN' IN THE WIND AGAIN WSJ SEPT 9 1993 9308190063 YY93 MM09 SEE RELATED LETTER LETTERS TO THE EDITOR THE SONGS WILL PREVAIL WSJ OCT 29 1993 9309090121 YY93 MM10 9310280184 931028 TECHNOLOGY BELL ATLANTIC VIACOM CHAIRMEN SNIPE AT EACH OTHER AS SENATORS STUDY DEALS BY JOHN J KELLER AND LAURA LANDRO STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE TWO CHAIRMEN AT THE CENTER OF TWO OF THE BIGGEST ENTERTAINMENT AND COMMUNICATIONS TAKEOVERS CLASHED BEFORE A SENATE SUBCOMMITTEE LOOKING INTO THE ANTITRUST IMPLICATIONS OF THEIR RESPECTIVE DEALS RAYMOND SMITH CHAIRMAN OF BELL ATLANTIC CORP AND THE ARCHITECT OF ITS PLAN TO ACQUIRE CABLE OPERATOR TELECOMMUNICATIONS INC TOLD SENATORS HIS DEAL WOULD PROMOTE COMPETITION AND BE GOOD FOR CONSUMERS BUT VIACOM INC CHAIRMAN SUMNER REDSTONE BEGGED TO DIFFER WITH WHAT HE CALLED MR SMITH'S ROSY SCENARIO IN UNPREPARED REMARKS MR REDSTONE WHOSE COMPANY IS RACING TO ACQUIRE PARAMOUNT COMMUNICATIONS INC IN THE FACE OF A HOSTILE BID FROM QVC NETWORK INC AND BACKERS AFFILIATED WITH TCI PRESIDENT JOHN MALONE SWIPED REPEATEDLY AT THE BELL ATLANTIC DEAL HE SAID THE BELLTCI PACT ELIMINATES COMPETITION AND PUTS INTOLERABLE MONOPOLY FIREPOWER IN THE HOLSTER OF MR MALONE BUT MR SMITH DEFENDED HIS NEWLY CHOSEN TCI PARTNER WHO WOULD BE VICE CHAIRMAN OF THE COMBINED COMPANIES AND WASN'T PRESENT AT THE HEARING GLANCING AT MR REDSTONE TO HIS IMMEDIATE LEFT MR SMITH TOLD THE PANEL THE ACCUSATIONS MADE ABOUT JOHN MALONE AT THIS TABLE ARE UNPROVEN AND INVOKED THE LONG AMERICAN TRADITION OF GIVING THOSE ACCUSED THE RIGHT TO DEFEND THEMSELVES MR SMITH ALSO TOOK AIM AT VIACOM'S OWN RATHER MESSY FIGHT FOR PARAMOUNT APPARENTLY SENSING THAT SOME SENATORS WERE AS CONCERNED ABOUT THAT STRUGGLE AS THEY WERE ABOUT HIS OWN DEAL I'M NOT GOING TO COMMENT AT THIS POINT ON WHICH POT IS CALLING WHICH KETTLE BLACK MR SMITH SAID POINTEDLY HE ADDED THAT AS VIACOM DREDGES UP MR MALONE'S PAST BEHAVIOR IN THE CABLE BUSINESS MR REDSTONE TALKS OF THE PAST WE HAVE TO LOOK AT THE FUTURE TCI SAID MR MALONE IS OUT OF THE COUNTRY BUT THE CABLETV MOGUL HAS GENERALLY EXPRESSED CONTEMPT TOWARD THE ANTITRUST ACCUSATIONS LEVELED AT HIM BY PARAMOUNT AND VIACOM AS PART OF THE FIGHT FOR PARAMOUNT VIACOM HAS ALSO FILED AN ANTITRUST SUIT AGAINST TCI WHICH TCI DISMISSED AS FRIVOLOUS BARRY DILLER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF QVC WAS ABSENT FROM THE HEARING BUT SAID HE IS PREPARED TO GIVE TESTIMONY WITHIN THE COMING WEEKS AND HAS ALREADY SPOKEN TO CONGRESSIONAL STAFFERS ABOUT SCHEDULING PARAMOUNT'S CHAIRMAN AND CEO MARTIN DAVIS MEANWHILE USED THE HEARING AS A FORUM TO TOUT HIS COMPANY'S PLANNED MERGER WITH VIACOM AND PAINT QVC'S HOSTILE OFFER AS AN ANTITRUST THREAT THE FRIENDLY VIACOMPARAMOUNT DEAL HAS ALREADY RECEIVED ANTITRUST CLEARANCE QVC'S BID HASN'T BEEN REVIEWED YET IN TESTIMONY HE SAID TCI AND OTHER PARTNERS BACKING THE QVC BID CONTROL NEARLY 19 MILLION SUBSCRIBERS COMPRISING A CABLE CARTEL CONTROLLING ONE OF EVERY THREE CABLE HOMES IN AMERICA MR DAVIS SAID THE GROUP'S OWNERSHIP OF STAKES IN CABLEPROGRAM NETWORKS AND REGIONAL SPORTS NETWORKS WAS ALSO A FACTOR AND IF IT ALSO CONTROLLED PARAMOUNT HE ADDED WOULD HAVE AN EVEN GREATER ANTICOMPETITIVE MASS MR DAVIS ALSO SAID A SUCCESSFUL QVC BID FOR PARAMOUNT WOULD HURT COMPETITION IN THE PUBLISHING INDUSTRY ADVANCE PUBLICATIONS INC IS INVESTING 500 MILLION IN THE QVC BID FOR PARAMOUNT MR DAVIS SAID ADVANCE'S RANDOM HOUSE UNIT COMPETES HEADTOHEAD WITH PARAMOUNT'S SIMON & SCHUSTER UNIT SOME ANTITRUST EXPERTS HOWEVER SAY ADVANCE WON'T HAVE A LARGEENOUGH STAKE IN PARAMOUNT TO RAISE ANTITRUST QUESTIONS THE APPEARANCES BY MR DAVIS AND MR REDSTONE CAP WEEKS OF HEAVY PERSONAL LOBBYING BY BOTH EXECUTIVES WHO HAVE SHUTTLED TO WASHINGTON SEVERAL TIMES TRYING TO DRUM UP SUPPORT FOR THEIR DEAL AND OPPOSITION TO MR MALONE THEY HAVE PRESSED VARIOUS MEMBERS OF CONGRESS AND THE CLINTON ADMINISTRATION TO PURSUE AN ANTITRUST ACTION AGAINST MR MALONE AND BOTH COMPANIES HAVE ALSO ENLISTED UNUSUALLY EXTENSIVE LOBBYING AID FROM SEVERAL PROMINENT WASHINGTON LAW FIRMS THE BELL ATLANTIC CHAIRMAN ALSO COULDN'T RESIST TAKING A SHOT AT VIACOM'S MTV CABLE CHANNEL AND BEAVIS AND BUTTHEAD UNDER FIRE FOR ITS NIHILISTIC CONTENT WHETHER BEAVIS AND BUTTHEAD' WOULD SELL ACROSS THE GLOBE IS OPEN TO QUESTION MR SMITH QUIPPED THAT FORCED THE STATELY MR REDSTONE 70 YEARS OLD TO DEFEND THE PROUDTOBETASTELESS PROGRAM AS ONE THAT SATIRIZES THE FOIBLES OF AMERICAN LIFE ON MORE SUBSTANTIVE MATTERS MR SMITH SAID RIVALS WOULD HAVE ACCESS TO BELL ATLANTICTCI'S NETWORKS HE PLEDGED THAT THE COMBINED COMPANIES WOULD SPEND 15 BILLION OVER FIVE YEARS UPGRADING CABLE AND PHONE SYSTEMS TO HANDLE AN ARRAY OF NEW SERVICES THAT DIDN'T MOLLIFY MR REDSTONE HOWEVER WHO LAMENTED THE PITCHED COMPETITION THAT HAS MARRED HIS GRAND DESIGNS ON PARAMOUNT WE DIDN'T EXPECT TO FIND BARBARIANS AT THE GATE' AFTER SPENDING FOUR YEARS TRYING TO PUT THIS PARAMOUNT DEAL TOGETHER MR REDSTONE SAID IN A BREAK DURING TESTIMONY HIS REFERENCE WAS TO THE BOOK THAT DEPICTED THE RJR NABISCO TAKEOVER BATTLE AS THE DEFINING EXAMPLE OF GREED IN THE 1980S 9310280183 931028 JR EAST ISSUE DERAILS IN TOKYO TRADING BY QUENTIN HARDY AND JATHON SAPSFORD STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN'S MAMMOTH RAILWAY PRIVATIZATION DEAL ONCE TOUTED AS A MUCHNEEDED SHOT OF ADRENALIN FOR THE LANGUISHING TOKYO STOCK MARKET IS RAPIDLY TURNING INTO A DISASTER TRADING IN EAST JAPAN RAILWAY CO OR JR EAST WAS HALTED 90 MINUTES AFTER THE TOKYO MARKET OPENED WEDNESDAY AMID A MASSIVE ORDER IMBALANCE THE HALT AND THE CONFUSION SURROUNDING IT RAISES OMINOUS QUESTIONS ABOUT THE FUTURE OF THE OFFERING AS WELL AS OTHER POSSIBLE GOVERNMENT ASSET SALES THE STOCK WHICH TUESDAY SOARED 58 OR 220000 YEN 2031 TO 600000 YEN MOVED UP BRIEFLY AT THE OPENING BUT WAS LOSING GROUND WHEN TRADING WAS STOPPED THE STOCK DIDN'T REOPEN WEDNESDAY THOUGH STOCK EXCHANGE OFFICIALS SAID THEY HOPE TO RESUME TRADING TODAY JR EAST HIT THE TOKYO STOCK EXCHANGE TUESDAY WITH TWO MILLION OF ITS FOUR MILLION SHARES PRICED AT 380000 YEN THE HEAVY DEMAND FOR THE SHARES AND THEIR ASTOUNDING RISE IN THE FIRST DAY OF TRADING PROMPTED THE JAPAN NATIONAL RAILWAYS SETTLEMENT CORP WHICH IS OVERSEEING THE SALE TO RELEASE ANOTHER 570000 SHARES FOR TRADING WEDNESDAY JNR SETTLEMENT SAID THE EXCHANGE ASKED FOR MORE SHARES SINCE THE MARKET WAS SWAMPED WITH BIDS GIVEN THE CLOSING PRICE WEDNESDAY JR EAST'S FOUR MILLION SHARES ARE VALUED AT 22 BILLION WHILE LEGAL THE UNEXPECTED 29 INCREASE IN SHARES AVAILABLE TO THE MARKET CAUGHT MANY INVESTORS WHO HAD ASSUMED THAT ONLY TWO MILLION SHARES WOULD BE AVAILABLE FOR TRADING BY SURPRISE THE TOKYO STOCK EXCHANGE BLAMED THE TRADING HALT ON AN IMBALANCE OF BIDS AND OFFERS WHICH THREATENED TO CRASH THE EXCHANGE'S ELECTRONIC TRADING SYSTEM TRADING WAS ALSO HALTED IN THE OSAKA AND NAGOYA EXCHANGES THOUGH THOSE EXCHANGES CONTINUED TO TAKE ORDERS BUT TRADERS THOUGHT AN EXCESS OF SELL ORDERS FOLLOWING THE STOCK'S 58 PRICE GAIN TUESDAY MADE EXCHANGE OFFICIALS NERVOUS ABOUT A BIG PRICE CORRECTION IF YOU TAKE THE POSITION THAT PEOPLE TRADE BASED ON DEMAND AND SUPPLY THE INCREASE IN SHARES AFFECTS THE PRICE SAID JULIA BALDINI ANALYST AT SCHRODER SECURITIES JAPAN LTD CERTAINLY THERE WAS WIDESPREAD SKEPTICISM ABOUT THE TOKYO EXCHANGE'S EXPLANATION IT'S A FLOORTRADED STOCK WHICH COULD HAVE BEEN HANDLED THROUGH MANUAL SALES ON THE FLOOR OF THE EXCHANGE SAID CRAIG CHUDLER A STRATEGIST AT UBS SECURITIES LTD HOW CAN YOU HAVE A SYSTEM BREAKDOWN IN THE CONFUSION OVER THE SUSPENDED TRADING EVEN NOMURA SECURITIES CO THE LEAD MANAGER OF THE ISSUE WAS FORCED TO REQUEST CLARIFICATION FROM THE EXCHANGE ON TRADING PROCEDURE FOR THE STOCK THAT'S ALMOST UNPRECEDENTED FOR TOKYO THE JR EAST SALE WAS MISHANDLED TO PUT IT NICELY SAID MR CHUDLER NOW MARKET OBSERVERS QUESTION WHETHER THE JR EAST ISSUE WILL BE ABLE TO ACCOMPLISH WHAT MANY OFFICIALS HAD HOPED IT WOULD BOOST THE OVERALL TOKYO STOCK MARKET AND DRAW MORE SMALL INVESTORS BACK TO THE MARKET DESPITE THE STARTLING RISE IN JR EAST SHARES TUESDAY THE OVERALL MARKET FELL 15 THEN LOST ANOTHER 1 WEDNESDAY AND WEDNESDAY'S TRADING HALT ISN'T LIKELY TO INSPIRE MUCH CONFIDENCE AMONG SMALL INVESTORS PUT YOURSELF IN THE SHOES OF THE SMALL INVESTOR WHO DOESN'T KNOW MUCH ABOUT THE MARKET SAID MASAHIKO TSUYUZAKI CHIEF TRADER AT TACHIBANA SECURITIES SUDDENLY WHEN YOU FIND OUT YOU CAN'T SELL STOCK YOU GET SCARED THE ROCKY LAUNCH OF JR EAST MAY SLOW FUTURE PRIVATIZATIONS IN JAPAN AS OFFICIALS REEXAMINE THE WAY JAPAN'S NATIONAL COMPANIES ARE MADE PUBLIC IT COULD ALSO BE A SETBACK TO INTERNATIONAL INVESTOR INTEREST IN SUCH ISSUES AMERICAN EUROPEAN AND ASIAN INSTITUTIONS ALL HOLD JR EAST SHARES OTHER COMPANIES PREVIOUSLY MARKED FOR PRIVATIZATION INCLUDE WEST JAPAN RAILWAY CO AND JAPAN TOBACCO CO I DON'T THINK THERE WILL BE THAT MANY PRIVATIZATIONS IN THE NEAR FUTURE SAID MR CHUDLER 9310280181 931028 TECHNOLOGY SONY PLANS TO PLAY HOME VIDEO GAMES WITH NEW MACHINE BUT SOME THINK THE PRODUCT TO BE SOLD OVERSEAS IN '95 IS TOO LITTLE AND TOO LATE BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SONY CORP SAID IT WILL INTRODUCE A HOME VIDEOGAME MACHINE OVERSEAS IN 1995 SONY BRINGS ITS TECHNOLOGICAL AND MARKETING EXPERTISE TO ONE OF THE HOTTEST MARKETS IN CONSUMER ELECTRONICS ONE DOMINATED BY TWO OF THE INDUSTRY'S TOUGHEST COMPETITORS NINTENDO CO AND SEGA ENTERPRISES LTD SUCCESS OF COURSE IS HARDLY GUARANTEED SONY HAS VIRTUALLY NO SOFTWARE FOR ITS MACHINE AND WILL HAVE TO LINE UP THIRDPARTY DEVELOPERS IN THE FACE OF STIFF RESISTANCE FROM NINTENDO AND SEGA SOME ANALYSTS ALSO SAY SONY'S MACHINE WHICH IS TO BE AVAILABLE LATE NEXT YEAR IN JAPAN MAY BE TOO LITTLE AND TOO LATE FOR ONE THING THE MACHINE WON'T BE ABLE TO PLAY ANY OF THE LARGE NUMBER OF CURRENT SEGA AND NINTENDO SOFTWARE PROGRAMS SONY CLAIMED IN ITS ANNOUNCEMENT THAT THE PRODUCT WOULD BE A REVOLUTIONARY NEW COMPUTER GAME SYSTEM BUT WAS RELUCTANT TO PART WITH TOO MANY DETAILS THE COMPANY SAID IT WILL FORM A NEW SUBSIDIARY SONY COMPUTER ENTERTAINMENT INC TO DEVELOP AND MARKET A NEW 32BIT HOME VIDEOGAME MACHINE THAT WILL PLAY GAMES STORED ON COMPACT DISKS CALLED CDROMS RIVAL MATSUSHITA ELECTRIC INDUSTRIAL CO ALREADY IS MARKETING THE 3DO 32BIT MICROPROCESSOR WHICH PLAYS MORE SOPHISTICATED SOUND AND GRAPHICS THAN THE 16BIT MACHINES CURRENTLY SOLD BY NINTENDO AND SEGA SONY SAID ANOTHER SUBSIDIARY SONY MUSIC ENTERTAINMENT JAPAN INC WILL CONTRIBUTE INHOUSE TALENT TO DEVELOP SOFTWARE FOR THE NEW GAME SYSTEM BY THE TIME SONY'S MACHINE IS READY NINTENDO AND SEGA WILL BE READYING THEIR COUNTERSTRIKES64BIT MACHINES WHOSE CAPABILITIES SHOULD FAR OUTSTRIP THOSE OF SONY'S 32BIT MACHINE BOTH COMPANIES IN FACT SAY THEY WILL SKIP THE 32BIT GENERATION ALTOGETHER SAYING THE TECHNOLOGY DOESN'T GIVE USERS ENOUGH BANG FOR THE EXTRA BUCKS 9310280180 931028 BETHLEHEM STEEL SWUNG TO A PROFIT IN THIRD QUARTER BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BETHLEHEM STEEL CORP REPORTED ITS FIRST QUARTERLY PROFIT IN THREE YEARS AIDED BY A TOUGH COSTCUTTING PROGRAM BETTER PRODUCT MIX AND HIGHER PRICES THE NATION'S SECONDLARGEST STEELMAKER AFTER US STEEL EARNED 31 MILLION OR 23 CENTS A SHARE IN THE THIRD QUARTER COMPARED WITH A NET LOSS OF 58 MILLION OR 76 CENTS A SHARE THE YEAR BEFORE THE 1993 FIGURE INCLUDED A ONETIME GAIN OF 25 MILLION FROM A CHANGE IN THE CORPORATE TAX RATE AND AN APPROXIMATELY 20 MILLION CHARGE FROM RECENT LABOR NEGOTIATIONS EXCLUDING THESE NONRECURRING ITEMS THE COMPANY EARNED 17 CENTS A SHARE WELL ABOVE THE FOUR CENTS A SHARE MOST ANALYSTS WERE EXPECTING NO MATTER HOW YOU SLICE IT THEY WERE PROFITABLE AND THAT'S PRETTY GOOD SAID MICHELLE GALANTER APPLEBAUM AN ANALYST AT SALOMON BROTHERS INC BUT IN A WAVE OF PROFITTAKING THAT AFFECTED MOST STEEL STOCKS YESTERDAY BETHLEHEM'S SHARES DROPPED 625 CENTS TO END AT 1675 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE BETHLEHEM PA STEELMAKER SAID INCREASED SALES VOLUME LOWER OPERATING COSTS AND AN IMPROVED PRODUCT MIX AT ITS BIG BURNS HARBOR AND SPARROWS POINT PLANTS WERE THE MAIN REASONS FOR THE EARNINGS THE PRODUCT MIX WAS BETTER MAINLY BECAUSE OF LAST DECEMBER'S STARTUP OF NEW HOTDIP GALVANIZING LINES AT THE TWO PLANTS SALES INCREASED 47 TO 106 BILLION FROM 101 BILLION CURTIS H BARNETTE BETHLEHEM'S CHAIRMAN SAID THE COMPANY WOULD CONTINUE IMPROVING OPERATIONS IN THE FOURTH QUARTER AND PREDICTED IT WOULD AGAIN REPORT A PROFIT SEPARATELY MOODY'S INVESTORS SERVICE INC SAID IT DOWNGRADED USX CORP'S PREFERREDSTOCK RATINGS REFLECTING THE WEAK OUTLOOK FOR THE COMPANY'S US STEEL UNIT THE CHANGE AFFECTS USX'S ADJUSTABLERATE CUMULATIVE PREFERRED STOCK AND CUMULATIVE CONVERTIBLE PREFERRED STOCK WHICH WERE REDUCED TO BA2 FROM BA1 USX CORP HAS NO COMMON SHARES MOODY'S SAID OVERALL OPERATING PERFORMANCE OF THE PITTSBURGHBASED GROUP WILL IMPROVE BUT MAINLY BECAUSE OF THE STRONGER POSITION OF USX'S MARATHON OIL CO UNIT 9310280179 931028 INTERNATIONAL JAPANESE BANKS PLAN TO REPORT BIG WRITEOFFS LOSS PROVISIONS FOR 1ST HALF SEEN AS IMPORTANT STEP TO CLEAR UP BAD DEBT BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S BIG BANKS ARE READY FOR WRITEOFFS MANY OF THIS COUNTRY'S BIGGEST BANKS ARE EXPECTED TO MAKE THEIR LARGESTEVER PROVISIONS AGAINST BAD LOANS WHEN THEY ANNOUNCE FISCAL FIRSTHALF RESULTS NEXT MONTH ANALYSTS IN TOKYO SAY NEW LOANLOSS RESERVES FROM THE 11 SOCALLED CITY BANKS ARE EXPECTED TO TOTAL MORE THAN 550 BILLION YEN 509 BILLION FOR THE HALF ENDED SEPT 30 A BIG STEP TOWARD CLEARING UP THE JAPANESE BANKS' BAD DEBT FOR THE MOST RECENT FULL YEAR CITY BANKS ADDED 711 BILLION YEN TO THEIR LOANLOSS RESERVES FOR A TOTAL OF 28 TRILLION YEN THE MOST RECENT EXAMPLE OF WRITEOFF FEVER APPEARS TO BE DAIICHI KANGYO BANK LTD ACCORDING TO JAPANESE NEWSPAPER REPORTS THE BIG BANK PLANS TO WRITE OFF ABOUT 150 BILLION YEN IN THE FIRST HALF AND A TOTAL OF ROUGHLY 600 BILLION YEN OVER THE NEXT TWO YEARS A DAIICHI KANGYO OFFICIAL DECLINED TO COMMENT ON THE SPECIFIC REPORTS BUT HE SAID THE BANK'S POLICY IS TO WRITE OFF THE BAD LOANS AS SOON AS POSSIBLE HE ADDED THAT NO ONE KNOWS IF IT WILL TAKE TWO OR THREE YEARS MEANWHILE TOKAI BANK LTD REVISED ITS ESTIMATED EARNINGS FOR THE FIRSTHALF SHARPLY DOWNWARD A BANK OFFICIAL SAID THE MOVE REFLECTS EFFORTS TO ACCELERATE WRITEDOWNS ON ITS TROUBLED LOAN PORTFOLIO WHICH IS ESTIMATED AT MORE THAN 800 BILLION YEN TOKAI PROJECTED AN UNCONSOLIDATED PRETAX PROFIT OF 12 BILLION YEN DOWN FROM AN EARLIER PROJECTION OF 25 BILLION YEN NET INCOME WAS ESTIMATED AT 115 BILLION YEN UP SLIGHTLY FROM 11 BILLION YEN PROBABLY REFLECTING LOWER TAX PAYMENTS DUE TO THE WRITEOFFS MANY BANKS APPARENTLY ARE TAKING ADVANTAGE OF AN INSTITUTION SET UP BY THE JAPANESE GOVERNMENT LAST YEAR THAT ALLOWS BANKS TO UNLOAD BAD REALESTATE LOANS IN EXCHANGE FOR A TAX WRITEOFF EVEN IF THE BANKS ACCELERATE THEIR WRITEOFFS IT'S TOO EARLY TO SAY THAT JAPAN'S BADDEBT CRISIS IS OVER THE CITY BANKS ARE AMONG THE HEALTHIEST PART OF THE BANKING SYSTEM TRILLIONS OF YEN IN BAD DEBTS REMAIN UNADDRESSED AT JAPAN'S REGIONAL BANKS HOUSING LOAN COMPANIES AND AGRICULTURAL COOPERATIVES STILL IT'S A REMARKABLE CHANGE FROM A YEAR AGO WHEN INITIAL ACKNOWLEDGEMENT OF THE BADDEBT PROBLEM RAISED QUESTIONS ABOUT THE VIABILITY OF THE JAPANESE FINANCIAL SYSTEM THE WRITEOFFS ARE HAPPENING FASTER THAN PEOPLE THOUGHT SAYS WALTER ALTHERR BANKING ANALYST AT MERRILL LYNCH JAPAN INC HE SAYS THE CITY BANKS ARE MOVING BEYOND DENIAL ABOUT THEIR BADLOAN PROBLEMS WHICH HE THINKS TOTAL ABOUT 15 TRILLION YEN TO A GENERAL ACCEPTANCE THAT JAPANESE BANKS HAVE LARGE BUT MANAGEABLE LEVELS OF DEBT AND THE THING TO DO IS TO PUT THEIR BAD LOANS BEHIND THEM BUT SERIOUS QUESTIONS REMAIN ABOUT HOW MUCH LONGER THE WRITEOFF FRENZY CAN LAST CERTAIN EXTERNAL FACTORS MAKE THIS A GOOD TIME TO ADD TO RESERVES INTEREST RATES ARE LOW AND THERE ARE WIDER SPREADS BETWEEN LOAN RATES AND PAYOUTS ON SAVINGS ACCOUNTS THE BANKS ALSO HAVE BENEFITED FROM A YEARLONG RALLY ON THE JAPANESE BOND MARKET BANKS ARE STRESSING WRITEOFFS WHILE THEY CAN SAYS LINDA DAQUIL ANALYST AT UBS SECURITIES LTD AT THIS RATE IF INTEREST RATES STAY AT THIS LEVEL AND WE DON'T SEE ANY FURTHER PRESSURE ON THE REALESTATE MARKET THE STRONGER BANKS WILL BE ABLE TO RECOVER WITHIN A FEW YEARS THOSE ARE BIG IFS JAPAN'S OFFICIAL DISCOUNT RATE WHICH INFLUENCES OTHER LENDING RATES CURRENTLY STANDS AT 175 A POSTWAR LOW AND CENTRAL BANK OFFICIALS WILL LIKELY RAISE RATES AT THE FIRST SIGN OF INFLATION JAPAN'S DEPRESSED REALESTATE MARKET MEANWHILE REMAINS AT A NEARSTANDSTILL WITH SO FEW TRANSACTIONS THAT IT'S HARD TO GAUGE REAL PRICES THERE ARE ALSO QUESTIONS ABOUT WHETHER THE IMPRESSIVE PACE OF WRITEOFFS AT THE BANKS IS EVEN KEEPING UP WITH AN INCREASE IN PROBLEM LOANS AS A RESULT OF JAPAN'S ECONOMIC DOWNTURN TAKE DAIICHI KANGYO FOR EXAMPLE AT THE END OF THE LAST FISCAL YEAR THE BANK SAID BAD LOANS TOTALED 13 TRILLION YEN ASSUMING THEIR BAD DEBTS HAVE INCREASED BY 8 OR 10 SINCE THEN A CHARGE ON THE SCALE OF DAIICHI KANGYO'S IS ONLY TREADING WATER ON TOTAL BAD DEBTS SAYS ALICIA OGAWA FINANCIAL ANALYST AT SALOMON BROTHERS ASIA LTD 9310280178 931028 WHO'S NEWS ENERGYNORTH INC ENERGYNORTH INC MANCHESTER NH RICHARD J CENSITS 56 YEARS OLD WAS ELECTED A DIRECTOR OF THIS UTILITY HOLDING COMPANY FILLING A VACANCY HE IS CHAIRMAN AND PRESIDENT OF MEDQUIST INC A GIBBSBORO NJ HEALTHCARE INFORMATION SERVICES CONCERN 9310280177 931028 WHO'S NEWS CARNIVAL CORP CARNIVAL CORP MIAMI HOWARD FRANK WAS APPOINTED TO THE NEW POSITION OF VICE CHAIRMAN OF THE OPERATOR OF CRUISE SHIPS MR FRANK 52 YEARS OLD HAS BEEN SENIOR VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER HE WILL RETAIN THE LATTER POSITION 9310280176 931028 INTERNATIONAL BCCI PROPOSAL FOR SETTLEMENT FAILS IN COURT BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL LUXEMBOURG IN A SURPRISE DECISION THE LUXEMBOURG COURT OF APPEAL REJECTED A PROPOSED SETTLEMENT OF BILLIONS OF DOLLARS OF CLAIMS RELATING TO BCCI HOLDINGS LUXEMBOURG SA THROWING WIDE OPEN THE QUESTION OF COMPENSATION FOR THE DEFUNCT BANK'S CREDITORS JUDGE RAOUL GRETSCH SAID THAT AN APPEAL BROUGHT BY THREE DISGRUNTLED DEPOSITORS OF THE BANK OF CREDIT & COMMERCE INTERNATIONAL WAS JUSTIFIED ADDING THAT THE BANK'S LIQUIDATORS THEREFORE SHOULDN'T SIGN THE PROPOSED SETTLEMENT THE COURT SAID THE PROPOSED SETTLEMENT WORKED OUT IN 1991 AND 1992 BETWEEN BCCI'S LIQUIDATORS AND ITS MAJORITY SHAREHOLDER THE GOVERNMENT OF SHEIK ZAYED BIN SULTAN ALNAHYAN OF ABU DHABI VIOLATED LUXEMBOURG'S LAWS BECAUSE IT DIDN'T GUARANTEE EQUAL TREATMENT OF THE BANK'S CREDITORS AND ALSO FAVORED ABU DHABI A RICH OIL SHEIKDOM IN THE PERSIAN GULF THE DEFUNCT BANK HAS ABOUT 250000 CREDITORS MOST OF WHOM ARE SMALL DEPOSITORS IN EUROPE AND THE MIDDLE EAST ALTHOUGH ABU DHABI WAS TO HAVE PUT UP AS MUCH AS 17 BILLION FOR THE PROPOSED SETTLEMENT BCCI CREDITORS ACCEPTING SUCH COMPENSATION WERE ASKED TO WAIVE THEIR RIGHTS TO ANY FURTHER LEGAL ACTION IN ADDITION ABU DHABI ITSELF WAS TO GARNER AS MUCH AS 50 OF THE FUNDS GATHERED TO COMPENSATE DEPOSITORS THE COURT DECISION MAY WELL RESULT IN A RESTRUCTURING OF THE PROPOSED SETTLEMENT BUT IT ALSO COULD LEAD TO YEARS OF LEGAL BATTLES IF THE CLAIMS OF THOUSANDS OF CREDITORS ARE TO BE SETTLED IN OPEN COURT THE BANK'S LIQUIDATORS INDICATED THAT IT IS LIKELY TO BE SEVERAL DAYS BEFORE THEY DECIDE HOW THEY WILL PROCEED AND WHETHER THEY IN TURN WILL APPEAL THIS DECISION IN THE US THE BCCI AFFAIR IS LARGELY OVER IN AUGUST ATTORNEY ROBERT ALTMAN WAS ACQUITTED OF NEW YORK STATE CRIMINAL CHARGES THAT HE HELPED BCCI SECRETLY GAIN CONTROL OF FIRST AMERICAN BANKSHARES INC OF WASHINGTON DC MR ALTMAN'S PARTNER ATTORNEY CLARK CLIFFORD ALSO WAS ACCUSED BUT WAS NEVER TRIED BECAUSE OF POOR HEALTH THERE ARE STILL SOME BCCIRELATED CIVIL SUITS PENDING IN THE US ALTHOUGH NO FIRST AMERICAN DEPOSITORS LOST ANY MONEY FOUNDED IN 1972 BCCI GREW RAPIDLY INTO ONE OF THE BIGGEST PRIVATE BANKS IN THE WORLD WITH ASSETS OF MORE THAN 20 BILLION AND BRANCHES IN ABOUT 70 NATIONS BUT THE BANK OF ENGLAND AND REGULATORS FROM SEVERAL OTHER WESTERN NATIONS SEIZED AND CLOSED THE BANK ON JULY 5 1991 CITING WIDESPREAD FRAUD AT THE LUXEMBOURGBASED INTERNATIONAL BANK THOUSANDS OF SMALL DEPOSITORS WERE LEFT HOLDING THE BAG THE LUXEMBOURG COURT'S DECISION CAUGHT MANY BY SURPRISE AS THE PROPOSED PLAN ESTIMATED TO OFFER COMPENSATION OF UP TO 30 CENTS ON THE DOLLAR TO CREDITORS ALREADY HAD BEEN APPROVED BY TWO BRITISH COURTS A COURT IN THE CAYMAN ISLANDS AND A LOWER COURT IN LUXEMBOURG THE LIQUIDATORS AND ABU DHABI HAVE CONSISTENTLY MAINTAINED THAT THE SETTLEMENT WAS THE BEST THAT CREDITORS COULD GET AND REJECTION OF IT COULD RESULT IN DEPOSITORS GETTING NO COMPENSATION AT ALL MARIA DENNEWALD THE LAWYER WHO BROUGHT THE APPEAL SAID SHE IS VERY HAPPY ADDING THAT THE DOOR IS OPEN TO FURTHER NEGOTIATION AND TO GET MORE MONEY BUT THE LIQUIDATORS EXPRESSED DISMAY ARGUING THAT THE COURT DECISION MEANS DEPOSITORS AND OTHER CREDITORS WON'T GET COMPENSATION ANY TIME SOON AND MAY GET MUCH LESS MONEY I AM DISAPPOINTED ON BEHALF OF THE CREDITORS AND DEPOSITORS SAID GEORGES BADEN A LUXEMBOURG LAWYER WHO ACTS AS ONE OF THE BANK'S THREE LIQUIDATORS THE UPSHOT FOR DEPOSITORS AND CREDITORS IS NO PROSPECT FOR ANY DIVIDEND IN THE NEAR FUTURE ABU DHABI WHICH OWNED 77 OF BCCI PRIOR TO ITS CLOSURE REACTED ANGRILY THE BANK'S CREDITORS HAVE LOST THEIR ONLY OPPORTUNITY FOR A TIMELY PAYMENT THE SHEIK'S GOVERNMENT SAID ADDING THE LIQUIDATORS HAVE ALREADY SAID THAT IN THE ABSENCE OF THE ARRANGEMENTS CREDITORS CANNOT EXPECT A PAYMENT FOR AS MUCH AS 10 YEARS AND THAT THEY MAY THEN RECOVER LESS THAN 10 OF THEIR CLAIM 9310280175 931028 CREDIT RATINGS CONSOLIDATION COAL CO PITTSBURGH MOODY'S INVESTORS SERVICE INC SAID IT PLACED THE LONGTERMDEBT AND COMMERCIALPAPER RATINGS OF THIS COAL CONCERN UNDER REVIEW FOR POSSIBLE DOWNGRADE ABOUT 300 MILLION OF LONGTERM DEBT IS AFFECTED THE RATING SERVICE SAID THE ACTION IS IN RESPONSE TO A RECENT STATEMENT THAT TALKS BETWEEN THE UNITED MINE WORKERS UNION AND THE BITUMINOUS COAL OPERATORS ASSOCIATION HAVE BROKEN OFF AS A RESULT THE CURRENT COAL STRIKE IS ANTICIPATED TO CONTINUE MOODY'S SAID THE REVIEW WILL FOCUS ON THE COMPANY'S CASH GENERATION AND THE EFFECT OF THE STRIKE THE RATINGS UNDER REVIEW APPLY TO THE COMPANY'S GUARANTEED NOTES AND MEDIUMTERM NOTES RATED SINGLEA2 AND ITS COMMERCIAL PAPER RATED PRIME1 CONSOLIDATION COAL IN A STATEMENT SAID IT WAS DISAPPOINTED BY MOODY'S DECISION SAYING THE FINANCIAL CONDITION OF ITS PARENT COMPANY REMAINS STRONG AND DOES NOT WARRANT THIS ACTION THE COMPANY ALSO SAID IT WILL WORK CLOSELY WITH MOODY'S TO RESOLVE ANY ISSUES OF CONCERN TO THEM CONSOLIDATION COAL HAD 1992 REVENUE OF 2 BILLION AND IS A UNIT OF CONSOL ENERGY INC A PRIVATELY HELD COMPANY BASED IN WILMINGTON DEL CONSOL IS OWNED BY GERMANY'S RHEINBRAUN AG AND DUPONT CO CANADIAN PACIFIC FOREST PRODUCTS LTD MONTREAL STANDARD & POOR'S CORP LOWERED ITS RATING ON THIS COMPANY'S SENIOR LONGTERM DEBT TO DOUBLEBMINUS FROM TRIPLEBMINUS ABOUT 75 MILLION IN DEBT IS AFFECTED THE AGENCY SAID THE CHANGE REFLECTS AN ASSESSMENT OF CP FOREST'S STANDALONE CREDIT QUALITY FOLLOWING CANADIAN PACIFIC LTD'S SALE OF ITS MAJORITY STAKE IN THE COMPANY THE RATING REMAINS ON CREDITWATCH WITH NEGATIVE IMPLICATIONS PENDING REVIEW OF CP FOREST'S LONGTERM FINANCING PLANS STANDARD & POOR'S SAID CP FOREST SAID THE RATING AGENCY OVERREACTED TO CANADIAN PACIFIC LTD'S DIVESTITURE 9310280174 931028 WHO'S NEWS AMERICAN BUSINESS PRODUCTS INC AMERICAN BUSINESS PRODUCTS INC ATLANTA ROBERT W GUNDECK EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED A DIRECTOR OF THE PROVIDER OF BUSINESS SUPPLIES MR GUNDECK 49 YEARS OLD SUCCEEDS JEFF DAVIDSON WHO RESIGNED FROM THE BOARD 9310280173 931028 S&P STIFFENS RATING OF ELECTRIC UTILITIES SAYING SECTOR IS IN LONGTERM DECLINE' BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STANDARD & POOR'S CORP STIFFENED ITS DEBTRATINGS FORMULA FOR THE ELECTRIC UTILITY INDUSTRY SAYING THAT THE INDUSTRY IS A SECTOR THAT'S IN LONGTERM DECLINE THE RATINGS AGENCY PLACED FIVE COMPANIES UNDER REVIEW WITH NEGATIVE IMPLICATIONS AND REVISED DOWNWARD ITS LONGTERM OUTLOOK FOR ABOUT 40 COMPANIES S&P SAID THE PRIMARY CHANGE IN ITS RATINGS SYSTEM TAKES MORE NOTICE OF THE EFFECTS OF COMPETITION IN ITS ANALYSIS OF A COMPANY'S FINANCIAL STRENGTH COMPANIES LISTED ON S&P'S CREDITWATCH LIST WITH NEGATIVE IMPLICATIONS ARE NORTHEAST UTILITIES HARTFORD CONN CENTERIOR ENERGY CORP CLEVELAND CENTRAL MAINE POWER CO AUGUSTA MAINE PUBLIC SERVICE CO OF NEW MEXICO ALBUQUERQUE NM AND TNP ENTERPRISES INC FORT WORTH TEXAS THE INDUSTRY IS FACING A SLOWGROWTH PERIOD IN TERMS OF DEMAND AND IT ALSO FACES GROWING COST PRESSURES AND NUCLEAR DECOMMISSIONING COST PRESSURES SAID CURTIS MOULTON CHIEF UTILITY ANALYST AT S&P THERE'S A GRADUAL RECOGNITION THAT THE INDUSTRY FACES SOME MAJOR CHALLENGES TO MAINTAIN CURRENT EARNINGS AND OPERATING LEVELS WE'RE DOWN TO A HANDFUL OF UTILITIES WITH A POSITIVE OUTLOOK INDUSTRY ANALYSTS SAY POTENTIAL CASUALTIES OF THE RAPID CHANGE INCLUDE THE DIVIDEND PAYOUT LONG CONSIDERED A KEY ATTRACTION FOR INVESTORS INTERESTED IN UTILITY STOCKS MANY ANALYSTS BELIEVE THAT HISTORIC DIVIDEND RATES CAN'T BE SUSTAINED IN THE NEW WORLD OF INCREASED COMPETITION AND EARNINGS ALSO WILL SUFFER OTHER RATINGS AGENCIES ALSO EXPRESS CONCERN ABOUT THE INDUSTRY'S CHANGING FACE FITCH INVESTORS SERVICE INC SAID ITS OWN RECENTLY COMPLETED SURVEY FOUND THAT 38 OF STATE REGULATORS EXPECT SOME INVESTOROWNED ELECTRIC UTILITIES TO FILE FOR CERTAIN BANKRUPTCYLAW PROTECTIONS THE LARGELY NEGATIVE REVISIONS BY S&P MATCH THE VIEW AMONG INDUSTRY EXPERTS THAT GRADUAL DEREGULATION OF THE PAST 15 YEARS HAS BEGUN TO RATTLE THE ONCEPLACID ELECTRIC UTILITY INDUSTRY ELECTRIC UTILITIES HAVE TRADITIONALLY OPERATED AS PROTECTED MONOPOLIES BUT FEDERAL AND STATE LEGISLATION IN RECENT YEARS HAS STRIPPED AWAY SOME OF THOSE REGULATORY SAFEGUARDS UNDER THE CONCEPT THAT INCREASED COMPETITION WOULD IMPROVE INDUSTRY PERFORMANCE THE RESULT ESPECIALLY IN TERMS OF CONSTRUCTING NEW POWER GENERATION HAS CUT INTO THE INDUSTRY'S ONCEPROTECTED FRANCHISE MANY INDUSTRIAL ENERGY USERS FOR INSTANCE HAVE BEGUN POWERING THEMSELVES BY BUILDING THEIR OWN POWER PLANTS AND NOW THE PROSPECT THAT UTILITIES CAN SELL POWER IN ANOTHER UTILITY'S TERRITORY IS BEING DEBATED IN STATE LEGISLATURES THE CHANGES HAVE BEGUN TO MAKE THE ELECTRIC UTILITY INDUSTRY MORE LIKE OTHER MARKETPLACES LOWER PRICE PROVIDERS HAVE A SIGNIFICANT ADVANTAGE INDEED UTILITIES HAVE BEEN RACING TO CUT COSTS AND OVERHEAD AMID RATING CHANGES AKIN TO PRICE WARS IN SOME SERVICE TERRITORIES SIX MONTHS OR A YEAR AGO WE BELIEVED THERE WOULD BE A LONGER TRANSITION BETWEEN THE OLD REGIME AND THE NEW HIGHLY COMPETITIVE WORLD SAID BARRY ABRAMSON UTILITY ANALYST AT PRUDENTIAL SECURITIES NOW IT APPEARS THIS WORKTHROUGH PERIOD ISN'T GOING TO OCCUR AT ALL WE HAVE EXPERIENCED SIGNIFICANT CHANGE IN TERMS OF COMPETITION AND THE MARKETS MAY NOT BE READY FOR SUCH A RAPID CHANGE WE HAVE BEEN TAKING AGGRESSIVE ACTION TO CUT OUR COSTS AND IMPROVE OUR EARNINGS SAID LEE BAILEY A SPOKESMAN FOR CENTERIOR A UTILITY WHOSE 160 ANNUAL DIVIDEND IS CONSIDERED IN JEOPARDY BY SEVERAL ANALYSTS MR BAILEY SAID DIVIDEND DECISIONS ARE MADE QUARTER BY QUARTER THE GLOOMIER OUTLOOK FOR UTILITIES HASN'T GONE UNNOTICED IN THE BOND MARKET NOW THAT INDUSTRY STRENGTH IS BEING ERODED BOND INVESTORS HAVE BEGUN TO FRET ABOUT THE UTILITIES' HIGH DEBT LEVELS IN COMPARISON TO OTHER INDUSTRIAL COMPANIES BOND INVESTORS PARTICULARLY AT THE LOWER RATINGS LEVELS DIDN'T TAKE WELL TO THE S&P REPORT PEOPLE DON'T WANT TO WAIT AROUND FOR THOSE COMPANIES TO GET THEIR ACTS TOGETHER SAID DAN SCOTTO A UTILITIES ANALYST AT DONALDSON LUFKIN & JENRETTE STANDARD & POOR'S CORP SAID NORTH ATLANTIC ENERGY CORP AND PUBLIC SERVICE CO OF NEW HAMPSHIRE OPERATING UNITS OF NORTHEAST UTILITIES WERE PLACED ON CREDITWATCH WITH NEGATIVE IMPLICATIONS AN ARTICLE YESTERDAY INCORRECTLY REPORTED THAT THE PARENT HAD BEEN PLACED ON CREDITWATCH WITH NEGATIVE IMPLICATIONS 9310280172 931028 WHO'S NEWS TEXTRON INC TEXTRON INC PROVIDENCE RI JOHN D MACOMBER 65 YEARS OLD WAS ELECTED A DIRECTOR OF THIS AEROSPACE COMMERCIALPRODUCTS AND FINANCIALSERVICES CONCERN MR MACOMBER IS CHAIRMAN OF THE COUNCIL FOR EXCELLENCE IN GOVERNMENT A WASHINGTON GROUP OF FORMER GOVERNMENT OFFICIALS SERVING AS PRIVATESECTOR ADVISERS HIS ELECTION EXPANDS THE BOARD TO 14 DIRECTORS 9310280171 931028 WHO'S NEWS COLUMBIA GAS SYSTEM INC COLUMBIA GAS SYSTEM INC WILMINGTON DEL MICHAEL W O'DONNELL 49 YEARS OLD WAS NAMED TO THE ADDITIONAL POSITION OF CHIEF FINANCIAL OFFICER OF THIS NATURALGAS COMPANY HE SUCCEEDS RA OSWALD 48 WHO IS LEAVING THE COMPANY TO PURSUE OTHER INTERESTS MR O'DONNELL CURRENTLY IS SENIOR VICE PRESIDENT 9310280170 931028 TECHNOLOGY SLOWER GROWTH IS EXPECTED IN SEMICONDUCTOR MARKET SAN JOSE CALIF GROWTH IN THE SEMICONDUCTOR MARKET SHOULD FALL OFF SHARPLY NEXT YEAR AFTER A STRONG 1993 PROJECTED THE WORLD'S MAIN CHIPTRADESTATISTICS GROUP AND SHOULD TUMBLE EVEN LOWER IN 1995 WORLD SEMICONDUCTOR TRADE STATISTICS A GROUP MADE UP OF THE WORLD'S BIGGEST CHIP MAKERS SAID WORLDWIDE MICROCHIP SHIPMENTS SHOULD GROW 136 TO 878 BILLION DOLLARS IN 1994 THAT WOULD BE LESS THAN HALF THE GROWTH RATE IN 1993 DURING WHICH THE GROUP EXPECTS SHIPMENTS TO GROW 291 TO 773 BILLION GROWTH SHOULD SLOW EVEN FURTHER IN 1995 BEFORE PICKING UP IN 1996 THE GROUP SAID WITH 1995 SHIPMENTS PROJECTED AT 925 BILLION UP 53 THE GROUP PREDICTED THAT NORTH AMERICAN CHIP SHIPMENTS NEXT YEAR WILL GROW 139 TO 282 BILLION DOWN FROM 345 GROWTH IN 1993 TO 248 BILLION NORTH AMERICAN SHIPMENTS IN 1995 SHOULD GROW 28 TO 29 BILLION IT PROJECTED 9310280169 931028 WHO'S NEWS TRW INC TRW INC CLEVELAND MICHAEL H ARMACOST 56 YEARS OLD A VISITING PROFESSOR AT STANFORD UNIVERSITY'S ASIA/PACIFIC RESEARCH CENTER WAS NAMED A NEW DIRECTOR OF THE PROVIDER OF HIGHTECHNOLOGY PRODUCTS AND SERVICES TO THE AUTOMOTIVE AEROSPACE INFORMATION AND DEFENSE MARKETS THE APPOINTMENT OF MR ARMACOST US AMBASSADOR TO JAPAN FROM 1989 TO 1993 IS EFFECTIVE IMMEDIATELY THE MOVE INCREASES THE SIZE OF TRW'S BOARD TO 14 MEMBERS 9310280168 931028 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 2 LOW 2 NEAR CLOSING BID 2 1/2 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 89 DAYS 324 90 TO 159 DAYS 325 160 TO 239 DAYS 330 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 315 60 DAYS 329 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 259 TWO MONTHS 271 THREE MONTHS 276 SIX MONTHS 288 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 324 THREE MONTHS 327 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 304 60 DAYS 320 90 DAYS 320 120 DAYS 320 150 DAYS 320 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 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 644 JAPAN 3375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY 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 673 60 DAYS 681 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 670 60 DAYS 680 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 485 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9310280167 931028 WHO'S NEWS MEDUSA CORP MEDUSA CORP CLEVELAND GEORGE E UDING JR 61 YEARS OLD WAS ELECTED A DIRECTOR INCREASING THE BOARD'S SIZE TO 12 MR UDINE WAS RECENTLY NAMED PRESIDENT AND CHIEF OPERATING OFFICER EFFECTIVE DEC 31 SUCCEEDING DANIEL E SOMES 58 WHO IS TAKING EARLY RETIREMENT MEDUSA MAKES AND MARKETS CEMENTS AGGREGATES AND INDUSTRIAL LIMESTONE PRODUCTS 9310280165 931028 WHO'S NEWS WICOR INC WICOR INC MILWAUKEE GEORGE WARDEBERG 58YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDED POST OF CHIEF EXECUTIVE SUCCEEDING STUART W TISDALE 65 WHO IS RETIRING AS CHAIRMAN AND CHIEF EXECUTIVE ON FEB 1 THE CHIEF OPERATING OFFICER AND CHAIRMAN POSITIONS WILL REMAIN VACANT MR WARDEBERG WILL ALSO SUCCEED MR TISDALE AS CHAIRMAN OF THE UTILITY HOLDING CONCERN'S THREE SUBSIDIARIES 9310280163 931028 WHO'S NEWS RYDER SYSTEM INC RYDER SYSTEM INC MIAMI R RAY GOODE WAS NAMED SENIOR VICE PRESIDENT PUBLIC AFFAIRS OF THIS TRANSPORTATIONSERVICES COMPANY THE APPOINTMENT IS EFFECTIVE NOV 1 MR GOODE 56 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OF WE WILL REBUILD A NONPROFIT AGENCY ESTABLISHED TO REBUILD THE MIAMI AREA IN THE WAKE OF HURRICANE ANDREW HE SUCCEEDS WENDELL R BEARD EXECUTIVE VICE PRESIDENT OFFICE OF THE CHAIRMAN MR BEARD 66 WILL RETIRE JUNE 30 1994 9310280162 931028 FINANCING BUSINESS TEXACO INC TEXACO INC WHITE PLAINS NY SAID ITS NEWLY FORMED FINANCE SUBSIDIARY ISSUED 350 MILLION OF SERIES A CUMULATIVE GUARANTEED MONTHLYINCOME PREFERRED SHARES IN A PUBLIC OFFERING THE SUBSIDIARY TEXACO CAPITAL LLC OFFERED THE SHARES UNDER A SHELF REGISTRATION FILED THIS MONTH WITH THE SECURITIES AND EXCHANGE COMMISSION DIVIDEND PAYMENTS AND LIQUIDATION OR REDEMPTION PAYMENTS ARE GUARANTEED BY THE PARENT PROCEEDS FROM THE SALE WILL BE LOANED TO TEXACO FOR WORKING CAPITAL RETIREMENT OF DEBT AND OTHER GENERAL CORPORATE PURPOSES GOLDMAN SACHS & CO IS LEAD UNDERWRITER 9310280161 931028 SANTA FE ENERGY TO HALT DIVIDEND TAKE WRITEDOWN BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON SANTA FE ENERGY RESOURCES INC SAID IT WILL ELIMINATE ITS QUARTERLY DIVIDEND ON COMMON STOCK AND TAKE A NONCASH 20 MILLION WRITEDOWN IN THE FOURTH QUARTER AS PART OF A BROAD RESTRUCTURING PLAN APPROVED BY ITS BOARD THE PLAN CALLS FOR SELLING NONCORE ASSETS TO TRY TO INCREASE THE COMPANY'S 1994 AND 1995 DEVELOPMENT PROGRAMS BY UP TO 150 MILLION AND FOR SPEEDING UP DEVELOPMENT IN THE COMPANY'S THREE CORE DOMESTIC AREAS SANTA FE RESOURCES WHICH WENT PUBLIC IN 1990 HAS RESTRUCTURED ITS OPERATIONS BEFORE BY MERGING LAST YEAR WITH ADOBE RESOURCES AND SELLING NONSTRATEGIC ASSETS SUCH AS THE SALE EARLIER THIS WEEK OF CERTAIN SOUTHERN CALIFORNIA AND GULF COAST OIL AND GASPRODUCING PROPERTIES FOR 48 MILLION YESTERDAY'S ANNOUNCEMENT COMES A WEEK AFTER THE COMPANY ANNOUNCED THIRDQUARTER EARNINGS FAR LOWER THAN LAST YEAR'S WITH NET INCOME OF 24 MILLION OR ONE CENT A SHARE ON REVENUE OF 1027 MILLION COMPARED WITH NET INCOME OF 73 MILLION OR SIX CENTS A SHARE ON REVENUE OF 1284 MILLION THE BOLD INITIATIVES ENDORSED BY OUR BOARD WILL ENABLE US TO EXPLOIT THE LARGE INVENTORY OF HIGHRETURN PROJECTS WE HAVE IDENTIFIED IN OUR CORE AREAS FOR WHICH OUR COMPANY HAS NOT HAD SUFFICIENT CAPITAL JAMES L PAYNE THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE SAID IN A STATEMENT SANTA FE'S MOVE TO SUSPEND ITS QUARTERLY DIVIDEND WHICH PAYS FOUR CENTS A COMMON SHARE WILL FREE UP 14 MILLION ANNUALLY THE COMPANY SAID THE DIVIDEND ON THE COMPANY'S PREFERRED STOCK WILL STAY AT ITS CURRENT LEVEL OF 35 CENTS IN ADDITION THE COMPANY SAID IT EXPECTS TO TAKE A WRITEDOWN OF ABOUT 20 MILLION IN THE CURRENT QUARTER TO REDUCE ITS PROPERTY COSTS SANTA FE SAID IT ALSO HAS IDENTIFIED WAYS TO CUT OPERATING COSTS AND GENERAL AND ADMINISTRATIVE EXPENSES AS PART OF ITS NONCOREASSET DISPOSITION PROGRAM SANTA FE SAYS IT EXPECTS TO SELL OIL AND GAS PROPERTIES HAVING AGGREGATE DAILY PRODUCTION OF ABOUT 4500 BARRELS OF OIL AND 20 MILLION CUBIC FEET OF GAS IN ADDITION TO THE PREVIOUSLY ANNOUNCED DISPOSITION TO HADSON CORP OF ASSETS FOR GATHERING AND PROCESSING GAS PROCEEDS FROM THESE ASSET SALES SHOULD EXCEED 150 MILLION THE PROPERTIES ARE IN THE COASTAL REGION OF SOUTHERN CALIFORNIA MONTANA WYOMING NORTH DAKOTA THE ANADARKO BASIN OF OKLAHOMA AND TEXAS AND ONSHORE GULF OF MEXICO SANTA FE'S ACCELERATED DEVELOPMENT PROGRAM WILL INVOLVE INCREASING SPENDING IN ITS THREE CORE DOMESTIC AREAS THE PERMIAN BASIN IN TEXAS AND NEW MEXICO THE OFFSHORE GULF COAST AND THE SAN JOAQUIN VALLEY OF CALIFORNIA AS WELL AS PRODUCTIVE AREAS IN INDONESIA AND ARGENTINA 9310280160 931028 INTERNATIONAL FOREIGN COMPANIES IN CHINA MAY FACE HIGHER TAX BURDEN STARTING NEXT YEAR BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG FOREIGN COMPANIES OPERATING IN CHINA MAY FACE A HIGHER TAX BURDEN UNDER NEW RULES EXPECTED TO TAKE EFFECT NEXT YEAR AND THEIR EXPATRIATE EMPLOYEES ARE LIKELY TO BE HIT WITH HIGHER INCOME TAXES AT THE SAME TIME CHINA IS EXPECTED TO REDUCE TAXES ON PROFITS FROM STATEOWNED COMPANIES MAKING THEM MORE COMPETITIVE WITH FOREIGN RIVALS BENEFITING FROM PREFERENTIAL TAX RATES THE EXPECTED CHANGES ARE PART OF A BROAD OVERHAUL AIMED AT EVENTUALLY CREATING A UNIFIED TAX SYSTEM TO REPLACE THE CURRENT CODE THAT TREATS FOREIGN COMPANIES AND VARIOUS CHINESEOWNED VENTURES DIFFERENTLY FROM ONE ANOTHER A UNIFIED AND EQUITABLE TAX REGIME IS REQUIRED OF A MARKET ECONOMY JIN XIN DIRECTOR OF THE STATE ADMINISTRATION OF TAXATION WAS QUOTED AS SAYING BY THE BEIJINGCONTROLLED CHINA NEWS AGENCY MR JIN SAID NEW INCOMETAX RATES FOR FOREIGN RESIDENTS AND A NEW VALUEADDED TAX ON FOREIGN COMPANIES WILL TAKE EFFECT JAN 1 HIS STATEMENT MADE AT THE CLOSE OF A TAX CONFERENCE IN BEIJING OUTLINED THE BROAD DIRECTIONS OF THE TAX REFORM BUT DIDN'T PROVIDE DETAILS IN ADDITION BOTH FOREIGN AND DOMESTIC INVESTORS PROBABLY WILL BE HIT BY NEW TAXES ON SECURITIES TRANSACTIONS AND CAPITAL GAINS ON SALES OF PROPERTY STATEOWNED COMPANIES HAVE THE MOST TO GAIN FROM THE EXPECTED CHANGES SINCE CHINA EMBARKED ON FREEMARKET POLICIES IN 1979 IT HAS CREATED PREFERENTIAL TAX REGIMES TO ENCOURAGE FOREIGN INVESTMENTS AND THE GROWTH OF COMPANIES OWNED BY TOWNSHIPS STATEOWNED FACTORIES COMPLAIN THAT THEY ARE BEING HANDICAPPED BY A HIGHER TAX BURDEN THAN COMPANIES THAT ENJOY PREFERENTIAL RATES AS A FIRST STEP THE OVERHAUL IS EXPECTED TO CUT THE TAX ON PROFITS FROM STATEOWNED COMPANIES FROM 55 TO 33 THE RATE PAID BY TOWNSHIP COMPANIES IN MONETARY TERMS THE TAX REFORM WON'T HIT FOREIGN COMPANIES THAT BADLY SAYS STEPHEN LEE SENIOR MANAGER IN THE CHINA DIVISION OF ACCOUNTING FIRM ERNST & YOUNG BUT THE MAIN IMPACT WILL BE STIFFER COMPETITION FOR FOREIGN COMPANIES IN THE LOCAL MARKET AS DOMESTIC COMPANIES BENEFIT FROM LOWER TAXES THE CHANGES WOULD LEAVE INTACT THE PREFERENTIAL TAX RATES ON FOREIGN COMPANIES THE TAX ON FOREIGN COMPANIES IS 15 IN THE COUNTRY'S FIVE SPECIAL ECONOMIC ZONES AND 24 IN MANY COASTAL CITIES AND PROVINCIAL CAPITALS VICE FINANCE MINISTER JIN RENQING SAID IN AN INTERVIEW WITH THE WALL STREET JOURNAL LAST WEEK THAT FOR NOW AT LEAST BEIJING ISN'T PLANNING TO TINKER WITH THOSE PREFERENTIAL RATES BUT IN THE LONG RUN HE SAID TAX REFORM WILL BE AIMED AT APPLYING NATIONAL TREATMENT TO FOREIGN BUSINESSES FOR FOREIGNERS THE MOST IMMEDIATE WORRY IS THE NEW PERSONAL INCOME TAX RATES CURRENTLY MOST EXPATRIATES PAY AN EFFECTIVE MAXIMUM RATE OF 225 WHILE THE TOP RATE FOR CHINESE NATIONALS IS 60 ACCORDING TO TAX EXPERTS WHO HAVE SEEN AN EARLIER DRAFT OF THE OVERHAUL THE PROPOSED MAXIMUM RATE WAS 35 FOR BOTH FOREIGNERS AND CHINESE BUT MORE RECENTLY THESE EXPERTS SAY THERE HAS BEEN TALK THAT THE RATE MIGHT BE RAISED TO 45 TAX ADVISERS ARE SPLIT ON HOW SERIOUS A BLOW THE NEW VAT WILL BE FOR FOREIGN FIRMS ERNST & YOUNG'S MR LEE EXPECTS LITTLE INCREASE IN THE TAX BURDEN BELIEVING THAT COSTS WILL GENERALLY EVEN OUT WITH OTHER TAX BREAKS BEING PLANNED 9310280159 931028 INTERNATIONAL UK STORES LOSE CHALLENGE TO COSTCO WAREHOUSE CLUB LONDON THREE BRITISH SUPERMARKET CHAINS LOST A COURT CHALLENGE TO KEEP COSTCO WHOLESALE CORP A SEATTLE DISCOUNTER FROM OPENING A WAREHOUSESTYLE STORE IN THE UNITED KINGDOM THE UK HIGH COURT REJECTED OBJECTIONS TO COSTCO RAISED BY TESCO PLC J SAINSBURY PLC AND SAFEWAY A UNIT OF ARGYLL GROUP PLC THE THREE FOOD RETAILERS WHICH CONTROL ABOUT 60 OF THE UK MARKET ARGUED THAT COSTCO SHOULD BE CLASSIFIED AS A RETAILER RATHER THAN A WHOLESALER FOR ZONING PURPOSES COSTCO APPLIED FOR THE WHOLESALER'S PERMIT WHICH HAS LESS STRINGENT PLANNING CONTROLS BECAUSE MORE THAN HALF ITS REVENUE COMES FROM SMALL BUSINESSES' BUYING SUPPLIES OR GOODS FOR RESALE THE RULING APPEARED TO CLEAR THE WAY FOR COSTCO TO OPEN A 15360SQUAREYARD CASH AND CARRY STORE IN ESSEX IN THE LONDON AREA AT THE STORE SUBSCRIPTIONPAYING MEMBERS COULD BUY DISCOUNTED ITEMS IN LARGE QUANTITIES COSTCO IS ONE OF SEVERAL US DISCOUNT RETAILERS TARGETING EUROPE WHERE PROFIT MARGINS ARE USUALLY LARGER AND COMPETITION LESS INTENSE THE HIGH COURT ALSO REFUSED TO LET THE COMPANIES APPEAL THE RULING BUT A SPOKESMAN FOR SAFEWAY SAID ITS LEGAL AVENUES ARE NOT CLOSED DOWN WHILE HE SAID THE COMPANY IS DISAPPOINTED WITH THE RULING HE ADDED THAT THE GOVERNMENT HAS STRENGTHENED REGULATIONS GOVERNING ALL WAREHOUSE MEMBERSHIP CLUBS 9310280158 931028 SMALL STOCK FOCUS STOCKS REGAIN GROUND AFTER SELLOFF EARNINGS REPORTS FUEL PRICE MOVES BY MARY ROMANO AND TOM GRANAHAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS REGAINED SOME STEAM AFTER INVESTORS SOLD OFF THESE PRICEY GROWTH ISSUES IN THE PAST TWO SESSIONS MARKET ANALYSTS SAID MANY INVESTORS TOOK PROFITS FROM SMALL STOCKS THEY FELT HAD LOFTY PRICES AND ROTATED INTO OTHER UNDERVALUED ISSUES THE RUSSELL 2000 INDEX WHICH MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION ISSUES TRADED OVER THE COUNTER AND ON THE MAJOR EXCHANGES FINISHED THE SESSION WITH A GAIN OF 114 POINTS OR 045 TO 25596 THE NASDAQ COMPOSITE INDEX ENDED WITH A GAIN OF 642 POINTS OR 084 TO 77188 NASDAQ ADVANCERS TOPPED DECLINERS 1644 TO 1338 ON NASDAQ NATIONAL MARKET VOLUME OF 257130500 SHARES COMPARED WITH 255043800 SHARES TUESDAY TOTAL VOLUME WAS 302949000 SHARES UP FROM 295901300 SMALL STOCKS SLUMPED IN THE PAST TWO TRADING SESSIONS BUT IT WAS A NORMAL CORRECTION IN THE MIDDLE OF A BULL MARKET SAID ALFRED GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS SMALLER GROWTH STOCKS HAVE BEEN THE INVESTMENT DU JOUR FOR THE PAST COUPLE OF YEARS SO THEY WERE BOUND TO COME DOWN IN PRICE MR GOLDMAN SAID ADDING THAT FURTHER DROPS SHOULD BE EXPECTED SOME OF THOSE BUYERS YESTERDAY WERE MOST LIKELY MANAGERS OF MUTUAL FUNDS WHO DECIDED TO BUY MORE OF THEIR FAVORITE STOCKS NOW THAT THEY WERE SLIGHTLY CHEAPER SAID RICHARD HOEY CHIEF ECONOMIST AT DREYFUS CORP AND A MANAGER OF THE DREYFUS GROWTH AND INCOME FUND LARGECOMPANY STOCKS DIDN'T POST THE GAINS OF THEIR SMALLER BROTHERS THE DOW JONES INDUSTRIAL AVERAGE SLUMPED 783 TO 366466 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX HAD A MODEST GAIN OF 019 TO 25746 MANY OF THE BIG MOVES AMONG SMALLCAP ISSUES WERE EARNINGSRELATED SPECTRAN CORP A DEVELOPER AND MARKETER OF FLEXIBLE GLASS FIBERS FOR USE IN COMMUNICATIONS CABLES JUMPED 19 OR 1 7/8 TO 11 5/8 THE STURBRIDGE MASSBASED COMPANY POSTED THIRDQUARTER NET INCOME OF 18 CENTS A SHARE COMPARED WITH 13 CENTS A YEAR EARLIER ATTRIBUTING THE GAIN TO CONTINUED STRONG DEMAND FOR ITS CORE MULTIMODE FIBER BUSINESS ANALYSTS HAD PROJECTED NET INCOME OF ABOUT 16 CENTS SPECTRAN SAID IT STILL FORECASTS INCREASED SALES AND EARNINGS FOR THE SECOND HALF COMPARED WITH THE FIRST HALF GAINSCO INC LOST 2 1/8 OR NEARLY 18 TO 9 7/8 IN TRADING ON THE AMERICAN STOCK EXCHANGE AFTER REPORTING THIRDQUARTER NET INCOME OF 18 CENTS A SHARE ONE PENNY LESS THAN THE YEAREARLIER PERIOD AND FOUR CENTS BELOW ANALYSTS' MEAN ESTIMATE CRYOMEDICAL SCIENCES REPORTED A LOSS OF TWO CENTS A SHARE FOR ITS FIRST QUARTER A FIVECENTS IMPROVEMENT OVER THE YEAREARLIER PERIOD THE COMPANY SAID THE LOSS IN THE LATEST QUARTER REFLECTED HIGHER SALES AS WELL AS PRODUCTCOST REDUCTION ACHIEVED SINCE THE INTRODUCTION OF THE COMPANY'S FIRST PRODUCT IN 1992 CRYOMEDICAL SHARES SOARED 25 OR 1 TO 5 UTILX WHICH INSTALLS AND REPLACES UNDERGROUND CABLES AND PIPES FELL 3/8 TO 6 AFTER EARNING 10 CENTS A SHARE IN THE LATEST SECOND QUARTER COMPARED WITH TWO CENTS IN THE COMPARABLE QUARTER A YEAR AGO ANALYSTS HAD EXPECTED THE COMPANY TO EARN 12 CENTS IN THE PERIOD SHARES OF SIERRA HEALTH SERVICES GAINED 1 1/8 TO 16 5/8 ON THE AMERICAN STOCK EXCHANGE THE LAS VEGASBASED HMO HOLDING COMPANY POSTED THIRDQUARTER EARNINGS OF 37 CENTS A SHARE SIX CENTS HIGHER THAN THE YEAREARLIER PERIOD AND A PENNY HIGHER THAN ANALYSTS HAD BEEN EXPECTING A HUGE CALENDAR OF INITIAL OFFERINGS AND SECONDARY AND CONVERTIBLE STOCK OFFERINGS IS TAKING UP MUCH OF THE ATTENTION OF INVESTORS AND TAKING AWAY SOME OF THE MONEY THAT HAS HELPED FUEL SMALL STOCKS MR HOEY OF DREYFUS SAID THE PRESSURE OF THE CALENDAR IS JUST AWESOME HE SAID TIMOTHY GRAZIOSO VICE PRESIDENT AND MANAGER OF NASDAQ TRADING AT CANTOR FITZGERALD SAID COMPUTERRELATED STOCKS WERE HELPED BY COMMENTS BY INTERNATIONAL BUSINESS MACHINES IBM SAID ITS PERSONALCOMPUTER BUSINESS WAS ONE OF ITS BRIGHT SPOTS WHEN IT REPORTED THIRDQUARTER LOSSES TUESDAY ONE PC MAKER AST RESEARCH GAINED 7/8 TO 19 5/8 COMPUTER CONCEPTS WHICH DEVELOPS AND MARKETS SOFTWARE PACKAGES GAINED 13/16 TO 6 1/8 THE STOCK TRADED 12 MILLION SHARES YESTERDAY WITH AVERAGE DAILY VOLUME OF 100000 INTEREST IN COMPUTER CONCEPTS STEMS FROM ITS ACQUISITION LAST WEEK OF SOFTWORKS WHICH DEVELOPS SYSTEMS SOFTWARE FOR MAINFRAMES TRANSPORTATION ISSUES THAT SLIPPED EARLY IN THE WEEK WERE MIXED SHARES OF WISCONSIN CENTRAL TRANSPORTATION CORP OF ROSEMONT ILL LOST 1 TO 48 1/2 AND SHARES OF TNT FREIGHTWAYS ALSO OF ROSEMONT ROSE 5/8 TO 22 5/8 AMERICAN EDUCATIONAL PRODUCTS LOST 3/8 OR 9 TO 3 3/4 THE COMPANY EARNED 12 CENTS A SHARE IN THE THIRD QUARTER COMPARED WITH 13 CENTS A YEAR EARLIER WHICH INCLUDED THE PAYMENT OF A PREFERRED DIVIDEND MICHAEL BAKER AMEX WAS UP 3/8 TO 9 1/4 WITH THIRDQUARTER EARNINGS OF 15 CENTS A SHARE ON MORE SHARES COMPARED WITH 18 CENTS A YEAR AGO THE COMPANY ALSO PROJECTED A RECORD YEAR FOR REVENUE FOREST LABORATORIES AMEX SAID IT ACQUIRED EXCLUSIVE RIGHTS IN THE US TO MARKET A PROSTAGLANDINIMPREGNATED VAGINAL DEVICE USED DURING LABOR FROM PHARMASCIENCES INC FOREST SAID CLINICAL STUDIES ON THE DEVICE ARE NEARLY COMPLETE AND A NEW DRUG APPLICATION IS EXPECTED TO BE FILED WITH THE FOOD AND DRUG ADMINISTRATION WITHIN THE NEXT FEW MONTHS FOREST LABS WAS UP 1 1/2 TO 40 5/8 OMEGA ENVIRONMENTAL SHARES GAINED 1/2 TO 12 7/8 ON HEAVY VOLUME AFTER DAIN BOSWORTH INITIATED COVERAGE OF THE COMPANY WITH POSITIVE COMMENTS THE BROKERAGE FIRM'S ANALYST GEORGE HALOULAKOS SAID HIS RESEARCH REPORT DIDN'T CARRY AN INVESTMENT OPINION BUT HE SAID HE IS FAVORABLY DISPOSED TOWARD THE STOCK CITING ITS STRONG GROWTH PROSPECTS 9310280157 931028 WHO'S NEWS JOHNSON WORLDWIDE ASSOCIATES INC JOHNSON WORLDWIDE ASSOCIATES INC RACINE WIS JOHN D CRABB 49YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER AND SAMUEL C JOHNSON 64 CHAIRMAN OF THE EXECUTIVE COMMITTEE RETURNS AS CHAIRMAN OF THE RECREATIONALPRODUCTS CONCERN BOTH MEN SUCCEED TERENCE S MALONE 63 WHO RETIRES AS CHAIRMAN AND CHIEF EXECUTIVE ON JAN 27 MR JOHNSON WAS CHAIRMAN BEFORE MR MALONE WHO TOOK THE POST IN OCTOBER 1992 THE POST OF CHIEF OPERATING OFFICER WILL BE ELIMINATED 9310280156 931028 WHO'S NEWS BOOZ ALLEN & HAMILTON INC BOOZ ALLEN & HAMILTON INC MCLEAN VA BRIAN N DICKIE 38 YEARS OLD WAS NAMED PRESIDENT OF THE WORLDWIDE COMMERCIAL BUSINESS UNIT OF THIS MANAGEMENT AND TECHNOLOGY CONSULTING FIRM HE SUCCEEDS MARTIN WALDENSTROM 45 WHO WILL RESUME HIS FORMER ROLE OF SENIOR CLIENT OFFICER IN EUROPE AND CONTINUE AS CHAIRMAN OF THE FIRM'S ACQUISITION SERVICES UNIT MR DICKIE HAD BEEN MANAGING PARTNER OF THE FIRM'S ASIAPACIFIC REGION AND A SENIOR PARTNER IN THE FINANCIAL SERVICES GROUP 9310280155 931028 TEXACO CONTRACTS IN CHINA WHITE PLAINS NY TEXACO INC SAID IT SIGNED PETROLEUM CONTRACTS WITH CHINA NATIONAL OFFSHORE OIL CORP TO EXPLORE THREE CONTRACT AREAS IN THE EAST CHINA SEA COVERING ABOUT TWO MILLION ACRES TEXACO CHINA BV A UNIT THAT WILL ACT AS OPERATOR HAS A 40 INTEREST IN THE CONTRACT AREAS PARTNERS AGIP OVERSEAS LTD AND MAERSK OIL CHINA AS HOLD 30 EACH THE CONTRACT AREAS ARE 250 MILES FROM SHANGHAI IN A CONTINENTAL SHELF WITH AN AVERAGE WATER DEPTH OF 300 FEET 9310280153 931028 MR CLINTON MEET MR GORE BY JAMES Q WILSON THE TWO MOST IMPORTANT DOCUMENTS ISSUED BY THE WHITE HOUSE SO FAR ARE THE REPORT OF THE NATIONAL PERFORMANCE REVIEW POPULARLY KNOWN AS THE GORE REPORT ON REINVENTING GOVERNMENT AND THE PRESIDENT'S HEALTH SECURITY PLAN THE DETAILS OF WHICH MR CLINTON DELIVERED TO CONGRESS YESTERDAY THERE IS LITTLE EVIDENCE THAT THE AUTHORS OF THE SECOND DOCUMENT HAVE READ THE FIRST THE GORE REPORT IS EXEMPLARY UNLIKE MANY SUCH REPORTS IT REVEALS A KEEN UNDERSTANDING OF THE MOTIVES OF BUREAUCRATS ACKNOWLEDGES THE MANY POLITICAL CONSTRAINTS ON THEIR BEHAVIOR AND GRASPS THAT THESE CONSTRAINTS CREATE AN ORGANIZATIONAL CULTURE IN WHICH PUBLIC PURPOSES ARE OFTEN SUBORDINATED TO PERSONAL SURVIVAL THE REPORT EXPLAINS WHY BUREAUCRACIES BEHAVE AS THEY DO HERE IS A SAMPLING OF ITS INSIGHTS WASHINGTON IS FILLED WITH ORGANIZATIONS DESIGNED FOR AN ENVIRONMENT THAT NO LONGER EXISTS BUREAUCRACIES SO BIG AND WASTEFUL THEY CAN NO LONGER SERVE THE AMERICAN PUBLIC WITH THEIR RIGID PREOCCUPATION WITH STANDARD OPERATING PROCEDURE THEIR VERTICAL CHAINS OF COMMAND AND THEIR STANDARDIZED SERVICES THESE BUREAUCRACIES ARE STEADY BUT SLOW AND CUMBERSOME MANY FEDERAL ORGANIZATIONS ARE ALSO MONOPOLIES WITH FEW INCENTIVES TO INNOVATE OR IMPROVE EMPLOYEES HAVE VIRTUAL LIFETIME TENURE REGARDLESS OF THEIR PERFORMANCE SUCCESS OFFERS FEW REWARDS FAILURE FEW PENALTIES THE BUDGET SYSTEM THE PERSONNEL RULES THE PROCUREMENT PROCESS THE INSPECTORS GENERAL ALL ARE DESIGNED TO PREVENT THE TINIEST MISSTEP WE ASSUME WE CAN'T TRUST EMPLOYEES TO MAKE DECISIONS AND SO WE SPELL OUT IN PRECISE DETAIL HOW THEY MUST DO VIRTUALLY EVERYTHING THEN AUDIT THEM TO ENSURE THAT THEY HAVE OBEYED EVERY RULE THE GORE REPORT DOES NOT FOR THE MOST PART ASSUME THAT IMPROVING THINGS CAN BE ACCOMPLISHED BY MOVING BOXES AROUND ON AN ORGANIZATIONAL CHART INCREASING THE POWER OF THE WHITE HOUSE OR CABINET OFFICERS TO COMMAND THE BUREAUCRACY OR PROVIDING CITIZENS WITH IMPROVED ACCESS OR GUARANTEES OF PARTICIPATION INSTEAD THE REPORT CALLS FOR REDUCING RED TAPE EMPHASIZING CUSTOMER SERVICE EMPOWERING LOWERRANKING EMPLOYEES AND CUTTING BACK ON SPENDING I AGREE WHOLEHEARTEDLY WITH THE SPIRIT AND MANY OF THE DETAILS OF THE GORE REPORT THERE IS ONLY ONE PROBLEM IT IS NOT IN THE INTERESTS OF CONGRESS OR THE WHITE HOUSE TO DO THESE THINGS INDEED THERE IS EVERY REASON TO SUSPECT THAT IN CREATING A FEDERALLY MANAGED HEALTH CARE SYSTEM CONGRESS AND THE WHITE HOUSE WILL SUPPLY ENDLESS HORROR STORIES FOR THE SECOND EDITION OF THE GORE REPORT OUR GOVERNMENT FEATURES RED TAPE COMPLEX PROCEDURES DIVIDED AUTHORITY AND HAMSTRUNG EMPLOYEES BECAUSE THESE ARE WAYS BY WHICH THE STRUGGLE FOR CONTROL OF THE BUREAUCRACY IS WAGED BY THE THREE INSTITUTIONAL CONTENDERS FOR POWER OVER IT THE PRESIDENCY CONGRESS AND THE COURTS A STREAMLINED DECENTRALIZED AND FLEXIBLE ORGANIZATION CAN EXIST AND PROSPER ONLY WHEN IT SERVES AGREEDUPON GOALS WHICH MEANS HAVING A SINGLE MASTER AND IS SUBJECT TO UNAMBIGUOUS MEASURES OF SUCCESS OR FAILURE WHICH USUALLY MEANS A MARKET TEST TO REFORM THE BUREAUCRACY WOULD REQUIRE PERSUADING THESE INSTITUTIONAL CONTENDERS TO REDUCE THEIR POWER AND THUS THEIR ABILITY TO SERVE IMPORTANT CONSTITUENCIES A DAUNTING TASK THESE CONSTITUENCIES INCLUDE ALMOST ANYONE WHO WANTS TO ENSURE THAT AN AGENCY SERVES HIS INTERESTS OR AT LEAST DOES NOT SERVE THE INTERESTS OF HIS OPPONENT THEY INCLUDE ENVIRONMENTALISTS WHO INSIST THAT AGENCIES HAVE ENVIRONMENTAL IMPACT STATEMENTS CONTRACTORS WHO INSIST THAT AGENCIES PURSUE UNECONOMIC BIDDING PRACTICES CIVILRIGHTS GROUPS THAT INSIST ON A DIVERSE WORK FORCE AND MINORITY BUSINESS SETASIDES FEDERAL EMPLOYEE UNIONS THAT INSIST ON JOB SECURITY INTEREST GROUPS THAT WANT RULEMAKING PROCEDURES THAT EITHER GIVE THEM AN ADVANTAGE OR PENALIZE THEIR RIVALS AND IN EITHER CASE PARALYZE THE AGENCY AND CITIES AND STATES THAT WANT TO DICTATE THE NUMBER AND LOCATION OF AN AGENCY'S LOCAL OFFICES AND TO CONTROL THE FORMULA BY WHICH GRANTS AND CONTRACTS WILL BE ALLOCATED IN SHORT THESE CONSTITUENCIES ARE YOU AND ME AS GOVERNMENT HAS GROWN SO ALSO HAS THE NUMBER AND VARIETY OF CONSTITUENCIES IT SERVES THAT SERVICE TAKES THE FORM NOT ONLY OF GRANTS SUBSIDIES AND TAX BREAKS BUT ALSO OF PRIVILEGED ACCESS TO THE WORKINGS OF FEDERAL AGENCIES HERE IS ONE EXAMPLE OF HOW THAT WORKS IN PRACTICE IN 1956 CONGRESS PASSED THE FEDERAL AID HIGHWAY ACT IN 28 PAGES IT AUTHORIZED THE INTERSTATE HIGHWAY SYSTEM LEVIED THE TAXES TO PAY FOR IT AND SET THE FEW RULES TO BE FOLLOWED IN BUILDING IT THIRTYFIVE YEARS LATER CONGRESS REAUTHORIZED IT BY PASSING THE INTERMODAL SURFACE TRANSPORTATION EFFICIENCY ACT OF 1991 THE NEW LAW WAS OVER 10 TIMES AS LONG AS THE ORIGINAL ONE AND NOT ONLY TOLD THE SECRETARY OF TRANSPORTATION TO FINISH THE INTERSTATE HIGHWAY SYSTEM BUT GAVE HIM BY MY COUNT OVER 20 NEW GOALS AND CONSTRAINTS AMONG THESE WERE PRESERVE HISTORIC SITES REDUCE EROSION ENCOURAGE THE USE OF SEAT BELTS CONTROL OUTDOOR ADVERTISING HIRE INDIANS REDUCE DRUNKEN DRIVING USE RECYCLED RUBBER IN MAKING ASPHALT GIVE 10 OF THE CONSTRUCTION MONEY TO BUSINESSES OWNED BY WOMEN OR OTHER DISADVANTAGED INDIVIDUALS BUY IRON AND STEEL FROM AMERICAN SUPPLIERS REQUIRE METROPOLITAN AREA PLANNING AND LIMIT THE USE OF CALCIUM ACETATE IN PERFORMING SEISMIC RETROFITS ON BRIDGES I DOUBT THAT THIS LAW WHATEVER ITS MERITS AS PUBLIC POLICY WILL HELP MAKE THE DEPARTMENT OF TRANSPORTATION THE KIND OF LEAN FLEXIBLE MISSIONDRIVEN CUSTOMERORIENTED AGENCY OF WHICH THE GORE REPORT SPEAKS CONGRESS THE WHITE HOUSE AND THE COURTS HAVE MULTIPLIED BY MANY TIMES THE CONSTRAINTS ON PUBLIC MANAGERS THERE IS SCARCELY ANY EVIDENCE THAT EXCEPT RHETORICALLY THEY WANT TO REDUCE THEM MR CLINTON'S HEALTH SECURITY PLAN CONTAINS NOT THE 293 PAGES OF THE 1991 TRANSPORTATION ACT BUT 1300 PAGES IT CALLS FOR THE CONSTRUCTION OF VAST NEW PUBLIC AND QUASIPUBLIC BUREAUCRACIES UNTESTED NEW STATE HEALTH ALLIANCES ARE TO BE CREATED THEY WILL IN MANY CASES BE MONOPOLY PROVIDERS OF BENEFIT PACKAGES WITH THE POWER TO SET THE FEES PHYSICIANS CAN CHARGE AND TO DECIDE WHETHER CONSUMERS WILL BE ALLOWED TO SELECT THEIR OWN DOCTOR ON A FEEFORSERVICE BASIS THESE ALLIANCES WILL BE OVERSEEN BY A NATIONAL HEALTH BOARD THAT WILL DEFINE THE STANDARD BENEFIT PACKAGE SET AND IMPLEMENT A NATIONAL HEALTH BUDGET AND ESTABLISH AND MANAGE A SYSTEM OF QUALITY MANAGEMENT QUALITY MANAGEMENT MEANS DEFINING PERFORMANCE MEASURES SETTING NATIONAL GOALS AND ESTABLISHING MINIMUM STANDARDS FOR HEALTH CARE INSTITUTIONS BEYOND THIS THE SECRETARY OF HEALTH AND HUMAN SERVICES WILL DETERMINE THE NUMBER OF TRAINING POSITIONS INTERNSHIPS RESIDENCIES IN EACH MEDICAL SPECIALTY ENSURE THAT AT LEAST HALF OF ALL NEW DOCTORS ARE TRAINED IN PRIMARY CARE AND INCREASE THE DIVERSITY OF THE HEALTH CARE WORK FORCE BY GIVING SPECIAL INCENTIVES TO MINORITIES ALL THIS OF COURSE IS TO BE DONE IN A WAY THAT IS STANDARDIZED SIMPLIFIED ACCOUNTABLE AND STREAMLINED THE REALITY WILL BE VERY DIFFERENT IN ALL LIKELIHOOD THE NATIONAL HEALTH PLAN IF ADOPTED WILL CALL INTO BEING A CENTRALIZED BUREAUCRACY MANAGING MONOPOLY PROVIDERS OF CLOSELY REGULATED SERVICES ON THE BASIS OF MULTIPLE CONSTRAINTS IT WILL CREATE A SYSTEM SO COMPLEX THAT IT WILL BE MANAGEABLE IF AT ALL ONLY ON THE BASIS OF STANDARD OPERATING PROCEDURES AND RULES DESIGNED IN THE WORDS OF THE GORE REPORT TO PREVENT THE TINIEST MISSTEP SO AS TO MINIMIZE THE CHANCE OF ANY SCANDAL THE ORGANIZATIONAL CHART OF THE SYSTEM WILL LOOK VERY MUCH LIKE THAT CREATED TO MANAGE THE SAVINGSANDLOAN BAILOUT IT WILL LINK SO MANY ENTITIES TOGETHER IN SUCH COMPLEX RELATIONSHIPS AS TO RESEMBLE A MAP MADE BY A DRUNKEN SPIDER WITH INKY FEET THE GORE REPORT DESCRIBES THE BUREAUCRATIC PATHOLOGIES THAT HAVE HOBBLED OUR WELFARE AND PUBLIC HOUSING PROGRAMS THE HEALTH SECURITY PLAN PROPOSES RECREATING THOSE PATHOLOGIES IN THE HEALTH FIELD THE REPORT CRITICIZES REGULATORY OVERKILL THE PLAN CALLS FOR MORE REGULATIONS THE REPORT URGES GREATER RELIANCE ON MARKET MECHANISMS THE PLAN ABOLISHES OR SEVERELY CURTAILS MARKETS THE REPORT WANTS THE GOVERNMENT TO PUT THE CUSTOMER FIRST AND GIVE HIM CHOICES THE PLAN PUTS REGIONAL HEALTH ALLIANCES FIRST AND ELIMINATES CHOICES THE REPORT SPEAKS OF EMPOWERING EMPLOYEES THE PLAN INTENDS TO DISEMPOWER DOCTORS PERHAPS MR GORE SHOULD HAVE A TALK WITH MR CLINTON MR WILSON IS PROFESSOR OF MANAGEMENT AND PUBLIC POLICY AT UCLA AND THE AUTHOR OF BUREAUCRACY 1989 AND THE MORAL SENSE 1993 9310280152 931028 INTERNATIONAL JAPAN RETAIL SALES DROP TOKYO SALES AT JAPAN'S MAJOR DEPARTMENT STORES AND SUPERMARKETS IN SEPTEMBER WERE DOWN 37 FROM A YEAR EARLIER TO 1527 TRILLION YEN 1410 BILLION THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY REPORTED THE SEPTEMBER DECLINE EXTENDED TO 16 MONTHS THE STREAK OF YEARONYEAR DECLINES IN RETAIL SALES 9310280151 931028 FINANCING BUSINESS COMMUNITY HEALTH SYSTEMS INC COMMUNITY HEALTH SYSTEMS INC HOUSTON SAID ITS BOARD APPROVED A 3FOR2 STOCK SPLIT NEW SHARES WILL BE DISTRIBUTED NOV 22 TO STOCKHOLDERS OF RECORD NOV 8 THE SPLIT WILL INCREASE THE NUMBER OF COMMON SHARES OUTSTANDING TO 111 MILLION FROM THE CURRENT 74 MILLION THE COMPANY OWNS AND OPERATES HOSPITALS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE COMPANY'S STOCK CLOSED AT 2625 DOWN 50 CENTS 9310280150 931028 INTERNATIONAL BUNDESBANK CHIEF REJECTS PRESSURE FOR A RATE CUT FRANKFURT GERMANY'S CENTRALBANK PRESIDENT HANS TIETMEYER REJECTED PRESSURE TO EASE GERMAN MONETARY POLICY AGAIN SOON DECLARING THAT LOWER INTEREST RATES WON'T SOLVE GERMANY'S ECONOMIC PROBLEMS GERMANY'S MALAISE IS ROOTED IN STRUCTURAL RIGIDITIES AND DISTRIBUTION BATTLES NOT IN INTERESTRATE POLICY MR TIETMEYER TOLD A CREDIT POLICY CONFERENCE YESTERDAY GERMAN INTEREST RATES ARE NOT THE PROBLEM AND THEY ARE NOT RESPONSIBLE FOR THE ECONOMIC DIFFICULTIES HE SAID ON MONDAY AN ECONOMIC SURVEY ISSUED BY GERMANY'S LEADING ECONOMIC RESEARCH INSTITUTES URGED SWIFTER REDUCTIONS IN GERMAN INTEREST RATES TO PULL GERMANY OUT OF RECESSION THE CALL CAME ONLY FOUR DAYS AFTER THE BUNDESBANK GERMANY'S CENTRAL BANK LOWERED ITS KEY DISCOUNT AND LOMBARD RATES BY A HALF PERCENTAGE POINT EACH FOR THE MOMENT WE SEE NO REASON FOR A FURTHER STEP MR TIETMEYER SAID CENTRALBANK CREDIT RATES CAN'T SOLVE STRUCTURAL PROBLEMS AND THEY COULD EVEN UNDERMINE STABILITY AND GROWTH POTENTIAL BY SENDING OUT THE WRONG SIGNALS HE SAID GERMANY IS A HIGHWAGE COUNTRY WITH SHORT WORKING TIMES RELATIVELY HIGH INFLATION HIGH TAXES AND SOCIAL CONTRIBUTIONS TIGHT CAPITAL AND WITHOUT MUCH MANEUVERING ROOM IN FISCAL POLICY HE SAID 9310280149 931028 DIVIDEND NEWS STURM RUGER & CO STURM RUGER & CO SOUTHPORT CONN INCREASED ITS QUARTERLY DIVIDEND 20 THE FIREARMS COMPANY DECLARED A DIVIDEND OF 30 CENTS A SHARE PAYABLE DEC 15 TO STOCK OF RECORD DEC 1 THE COMPANY WHICH HAD PAID 25 CENTS QUARTERLY HASN'T RELEASED THIRDQUARTER RESULTS AND DECLINED TO COMMENT ON THE DIVIDEND ACTION BUT THE INCREASE FOLLOWS A 58 JUMP IN SECONDQUARTER NET TO 85 MILLION OR 63 CENTS A SHARE ON THE NEW YORK STOCK EXCHANGE YESTERDAY STURM RUGER ROSE 625 CENTS TO 31 9310280148 931028 SHAWMUT BUSINESS RENAMED HARTFORD CONN SHAWMUT NATIONAL CORP SAID IT CHANGED THE NAME OF ITS INVESTMENT MANAGEMENT BUSINESS INCLUDING ITS ONE FEDERAL ASSET MANAGEMENT UNIT TO SHAWMUT INVESTMENT ADVISERS IT SAID SHAWMUT INVESTMENT ADVISERS HAS ABOUT 14 BILLION IN ASSETS UNDER MANAGEMENT AND ABOUT 11 BILLION IN NONMANAGED ASSETS SUCH AS CUSTODY ACCOUNTS 9310280147 931028 WHO'S NEWS ICN PHARMACEUTICALS INC ICN PHARMACEUTICALS INC COSTA MESA CALIF NOBEL LAUREATE ROGER GUILLEMIN 69 YEARS OLD WAS NAMED A DIRECTOR RAISING THE BOARD'S MEMBERS TO NINE DR GUILLEMIN DIRECTOR OF THE WHITTIER INSTITUTE FOR DIABETES AND ENDOCRINOLOGY AT THE SCRIPPS INSTITUTE IN LA JOLLA CALIF WON THE NOBEL PRIZE FOR MEDICINE IN 1977 ICN PHARMACEUTICALS' MANAGEMENT WHICH IS EMBROILED IN A BATTLE TO RETAIN CONTROL OF THE COMPANY HAS SAID FOR SOME TIME THAT IT IS LOOKING FOR ADDITIONAL BOARD MEMBERS A SPOKESMAN SAID THE BIOTECHNOLOGY COMPANY PLANS TO EXPAND ITS BOARD BY AT LEAST ONE AND POSSIBLY MORE SEATS 9310280146 931028 JB'S RESTAURANTS ISSUES STOCK PROCEEDS OF ABOUT 52 MILLION WILL BE USED TO HELP FINANCE THE DEVELOPMENT OF HOMETOWN BUFFET RESTAURANTS JB'S SAID THE PREFERRED STOCK IS CONVERTIBLE INTO ABOUT 17 OF THE COMPANY'S COMMON STOCK ABS MB LTD THE MERCHANT BANKING AFFILIATE OF ALEX BROWN & SONS INC IS THE GENERAL PARTNER OF ABS MB JB LPEND 9310280145 931028 HEARD ON THE STREET UST NOSEDIVES AS HIGHER EXCISE TAX LOOMS BUT SOME SMELL A BARGAIN BEHIND THE SMOKE BY JONATHAN CLEMENTS AND EBEN SHAPIRO STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK HEALTHCARE REFORM JUST CLAIMED ANOTHER VICTIM YESTERDAY BROUGHT A 12 DIVE IN THE SHARES OF UST A MAKER OF THE MOIST SMOKELESS TOBACCO PRODUCTS COMMONLY KNOWN AS SNUFF THE REASON PROPOSED HIGHER EXCISE TAXES TO PAY FOR HEALTHCARE REFORM TO MANY THE PROPOSAL MAKES UST'S STOCK EVEN MORE UNATTRACTIVE BUT TO SOME BRAVE BARGAINHUNTERS IT LOOKS LIKE A BUYING OPPORTUNITY UST STOCK CLOSED AT 24 3/4 OFF 3 3/8 ON FOURTIMESNORMAL VOLUME OF ALMOST 18 MILLION SHARES THIS IS THE BUY OF A LIFETIME SAYS GARY BLACK AN ANALYST WITH SANFORD C BERNSTEIN & CO IT WILL POP BACK AS WORD SPREAD YESTERDAY AFTERNOON THAT THE CLINTON HEALTH BILL PROPOSED BOOSTING THE TAX ON A CAN OF MOIST SMOKELESS TOBACCO TO MORE THAN 96 CENTS FROM LESS THAN THREE CENTS WAVES OF SELLING HIT UST'S STOCK PROMPTING A TRADING HALT IN THE SHARES ON THE NEW YORK STOCK EXCHANGE THE STOCK REOPENED SHORTLY BEFORE THE 4 PM MARKET CLOSE AND SHED 1 5/8 IN THE FINAL MINUTES THAT'S A HUGE INCREASE IN THE EXCISE TAX AND IT HAS AN IMPORTANT IMPLICATION IF IT GOES THROUGH AS PROPOSED SAYS BRUCE BAUGHMAN COMANAGER OF THE FRANKLIN RISING DIVIDENDS PORTFOLIO IT EATS INTO THE COST ADVANTAGE THAT SNUFF HAS OVER CIGARETTES THIS IS GOING TO DISCOURAGE THE SWITCH FROM CIGARETTES TO SNUFF BASED IN GREENWICH CONN UST DOMINATES THE MOIST SMOKELESS TOBACCO MARKET WITH AN 86 MARKET SHARE IT SELLS TINS OF SNUFF UNDER SUCH BRAND NAMES AS COPENHAGEN SKOAL LONG CUT AND SKOAL BANDITS INSTEAD OF LIGHTING UP YOU SLIDE THE TOBACCO BETWEEN CHEEK AND GUM AND LEAVE IT THERE UNAPPETIZING PERHAPS UNHEALTHY TOO BUT HISTORICALLY THE PRODUCT HAS ALSO BEEN HIGHLY PROFITABLE OVER THE PAST DECADE UST'S PERSHARE EARNINGS HAVE RISEN AT A 19 ANNUAL CLIP WHILE ITS DIVIDEND HAS INCREASED 21 A YEAR WHEN YOU SEE THE PROFIT MARGINS ON THIS BUSINESS YOU REALIZE WHY THEY CALL THE PRODUCT BANDITS SAYS DONALD YACKTMAN MANAGER OF CHICAGO'S YACKTMAN FUND A 130 MILLION MUTUAL FUND THIS YEAR MANY INVESTORS HAVE BEEN WORRYING THAT THE LUCRATIVE PROFIT MARGINS ON BRANDNAME TOBACCO PRODUCTS WOULD BE DESTROYED BY COMPETITION FROM CHEAPER ALTERNATIVES THOSE FESTERING WORRIES CULMINATED WITH MARLBORO FRIDAY ON APRIL 2 WHEN TOBACCO STOCKS WERE POUNDED AFTER PHILIP MORRIS ANNOUNCED THAT IT WOULD SLASH THE PRICE OF ITS LEADING MARLBORO CIGARETTE BRAND THAT DAY UST WENT UP IN SMOKE WITH THE OTHER TOBACCO STOCKS BUT SOME BULLISH MONEY MANAGERS RECKON THE STOCK GOT UNFAIRLY BURNT AMONG THE BULLS HAS BEEN STEPHEN BOESEL MANAGER OF THE 11 BILLION T ROWE PRICE GROWTH & INCOME FUND WE DECIDED THAT THE SITUATION WITH UST WASN'T SIMILAR AT ALL TO WHAT WAS GOING ON WITH THE OTHER TOBACCO STOCKS SAYS MR BOESEL THERE'S UNIT GROWTH IN THE SNUFF BUSINESS THERE AREN'T THE SAME SORT OF HEALTH RISKS AND YET THE STOCK SOLD OFF LIKE THE TOBACCO STOCKS DID MR BOESEL POINTS OUT THAT RJR NABISCO HOLDINGS AND PHILIP MORRIS THE COUNTRY'S TWO BIGGEST MAKERS OF BRANDNAME CIGARETTES ALSO ARE MAJOR PLAYERS IN THE DISCOUNTCIGARETTE BUSINESS INEVITABLY THEIR OWN DISCOUNT CIGARETTES END UP LURING AWAY CUSTOMERS WHO PREVIOUSLY SMOKED HIGHERPRICED BRANDS DISCOUNT CIGARETTES HAVE SOARED IN POPULARITY SNAGGING ABOUT 35 OF THE CIGARETTE MARKET BY CONTRAST UST DOESN'T SELL DISCOUNT SNUFF AND DISCOUNT SNUFF HASN'T MADE BIG INROADS CLAIMING A MARKET SHARE OF JUST 4 SO FAR SOME THINK THE BIG EXCISETAX BOOST IF ENACTED WILL GIVE A BOOST TO LOWPRICED SNUFF IT'S AN OPPORTUNITY FOR THE DISCOUNTERS SAYS S LEIGH FERST AN ANALYST WITH PRUDENTIAL SECURITIES IT MAKES EVERYTHING MORE OF A PROBLEM FOR UST IT'S BAD NEWS FOR THEM AND I DON'T THINK THEY PREPARED FOR IT BUT T ROWE PRICE'S MR BOESEL PROFESSES TO BE UNCONCERNED THE EXCISETAX INCREASE DOESN'T CHANGE MY THINKING ONE BIT HE SAYS YESTERDAY I GOT THE BUYING OPPORTUNITY I WAS LOOKING FOR IF THIS 96 CENTSACAN EXCISE TAX GOES THROUGH IT'S BOUND TO AFFECT DEMAND FOR SNUFF BUT THE STOCK ALREADY REFLECTS THAT THE STOCK IS CLEARLY DOWNTRODDEN THE COMPANY'S SHARES ARE NOW TRADING 30 BELOW THE 52WEEK HIGH OF 35 3/8 WHAT'S LESS CLEAR IS WHETHER THE EXCISETAX PROPOSAL WILL GO THROUGH WE VIGOROUSLY OPPOSE THIS SAYS A UST SPOKESMAN SANFORD C BERNSTEIN'S MR BLACK SAYS EVEN IF THE PROPOSAL BECOMES LAW WHICH HE CONSIDERS UNLIKELY UST WILL BE ABLE TO RAISE SNUFF PRICES TO OFFSET THE EXPECTED DECLINE IN CONSUMPTION YOU ARE NOT GOING TO SEE A 12 DECLINE IN EARNINGS FOR UST HE SAYS REFERRING TO THE MAGNITUDE OF YESTERDAY'S DIVE IN UST STOCK ALBERT NICHOLAS ONE OF THE MUTUALFUND INDUSTRY'S MOST CELEBRATED STOCKPICKERS LIKED UST BEFORE YESTERDAY'S DROP AND HE HAS NO INTENTION OF ABANDONING THE STOCK NOW WE'LL JUST GUTS IT OUT AND STICK WITH IT SYS MR NICHOLAS MANAGER OF MILWAUKEE'S 32 BILLIONASSETS NICHOLAS FUND WE FEEL THAT CONGRESS MAY CHANGE THE HEALTH PLAN I LIKE THE STOCK AND I LIKE THE COMPANY AND I THINK THEY'LL DO JUST FINE 9310280144 931028 WHO'S NEWS JUSTICE POST NOMINEE IS PICKED WASHINGTON PRESIDENT CLINTON NAMED HOWARD UNIVERSITY LAW PROFESSOR LORETTA COLLINS ARGRETT TO BE THE JUSTICE DEPARTMENT'S TOP TAX OFFICIAL BEFORE SHE BEGAN TEACHING AT HOWARD IN 1986 MS ARGRETT PRACTICED PRIVATELY AND WAS A STAFF LAWYER FOR THE JOINT CONGRESSIONAL COMMITTEE ON TAXATION A 1976 GRADUATE OF HARVARD LAW SCHOOL SHE IS 56 YEARS OLD HER NOMINATION TO BE AN ASSISTANT ATTORNEY GENERAL MUST BE CONFIRMED BY THE SENATE IN A STATEMENT MR CLINTON SAID LORETTA ARGRETT IS A WOMAN WITH THE INTELLIGENCE DILIGENCE AND EXPERTISE TO GET THE JOB DONE WELL 9310280143 931028 MARKETING BRIEF NOTED MAGAZINES READER'S DIGEST ASSOCIATION INC LAUNCHED A CZECHLANGUAGE EDITION OF READER'S DIGEST MAGAZINE READER'S DIGEST VYBER WITH AN INITIAL CIRCULATION OF 50000 BRINGING THE MAGAZINE TO 45 EDITIONS IN 17 LANGUAGES 9310280142 931028 WORLD MARKETS TOKYO EQUITIES DROP AGAIN ON GROWING DISMAY ABOUT RAIL LISTING LONDON SHARES DRIFT DOWN A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARES SLUMPED AGAIN WEDNESDAY AS THE BENCHMARK NIKKEI INDEX CLOSED BELOW 20000 FOR THE FIRST TIME IN ALMOST THREE MONTHS ON CONTINUED DISAPPOINTMENT THAT A RAILWAY ISSUE'S NEW LISTING FAILED TO FUEL THE MARKET'S ENGINE IN LONDON STOCKS FELL FOR THE SECOND DAY IN A ROW AS THE MARKET DRIFTED WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11280 DOWN 041 REFLECTING DECREASES IN ASIA/PACIFIC AND EUROPEAN MARKETS AND INCREASES IN AMERICAN MARKETS BIOTECHNOLOGY STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 7632 UP 159 OR 21 WITH CHIRON OF THE US POSTING A 53 GAIN IN ITS LOCAL CURRENCY FISHING STOCKS TRAILED AT 8325 DOWN 186 OR 22 WITH KYOKUYO OF JAPAN SLIDING 32 IN LOCAL CURRENCY WITH THE THREAT OF MARGIN CALLS DEMANDS FOR PAYMENT OF STOCK BOUGHT ON CREDIT HANGING OVER THE MARKET INVESTORS SOLD FUTURES TO HEDGE THEIR LOSSES PROMPTING INDEXLINKED ARBITRAGE SELLING JR EAST'S WOES HELPED TO SINK OTHER RAILWAY ISSUES IN HEAVY VOLUME FOR THAT SECTOR BROKERAGEFIRM SHARES WHICH HAD BEEN GAINING ON SPECULATION THAT TRADING VOLUME COULD RECOVER BECAUSE OF THE JR EAST LISTING WILTED AMID THE MARKET'S WEAKNESS CHEMICAL SHARES WERE SOFT ON A NEWS REPORT THAT MOST COMPANIES IN THE INDUSTRY WOULD POST ANNUAL OPERATING LOSSES JAPANESE PUBLIC FUNDS WHICH HAD PROVIDED A MARKET PILLAR BY BUYING IN RECENT MONTHS KEPT A LOW PROFILE TO SMOOTH THE TRADING OF JR EAST SHARES THE TOKYO EXCHANGE SAID THAT STARTING THURSDAY IT WOULD ALLOW EARLIER COLLECTION OF ORDERS AND WOULD SUSPEND ORDERS BY COMPUTER IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 110 POINTS TO 31543 THE FT 30STOCK INDEX ROSE 21 POINTS TO 23836 VOLUME WAS 7114 MILLION SHARES UP FROM 5895 MILLION SHARES A DAY EARLIER AS PRICES MEANDERED THE MARKET CONTINUED TO FIND BASIC SUPPORT WHILE INVESTORS SOUGHT TO DETERMINE ITS DIRECTION LARGESCALE SELLING DIDN'T EMERGE PROFITTAKING CONTINUED TO DEPRESS DRUG STOCKS INVESTORS SWITCHED AMONG ISSUES IN THE TELECOMMUNICATIONS SECTOR FOOD RETAILERS WERE HURT BY NEWS THAT A BRITISH COURT RULED IN FAVOR OF A US DISCOUNT WHOLESALER THAT PLANS TO OPEN A WAREHOUSE STORE IN BRITAIN A MOVE THAT BIG UK FOOD FIRMS CHALLENGED INVESTORS WERE CONCERNED THAT FOREIGN DISCOUNTERS WOULD ADD TO PRESSURES ON PROFIT MARGINS OF BRITISH SUPERMARKETS IN FRANKFURT STOCK PRICES CONTINUED TO CONSOLIDATE EASING FROM THE STRONG GAINS THAT BOOSTED THE MAIN INDEX TO RECORDS LAST WEEK THE DAX 30STOCK FELL 1564 POINTS TO 204308 AFTER TRADING WITHIN AN EIGHTPOINT BAND FEW BUYERS EMERGED AS THE MARKET WAS UNDER PRESSURE FROM ARBITRAGE ON LOWER DAX FUTURES PRICES THOUGH 26 DAX STOCKS FELL AND JUST FOUR ROSE THE MARKET MOOD WAS STEADY AMID THIN CORPORATE NEWS AND PROSPECTS FOR IMPROVEMENTS IN THE GERMAN JOB MARKET IN PARIS STOCKS SLIPPED FOR THE THIRD STRAIGHT DAY IN UNEVENTFUL TRADING AS THE MARKET CONTINUED TO PULL BACK FROM A RECORDSETTING JUMP LATE LAST WEEK IN AMSTERDAM EQUITIES POSTED BROAD LOSSES FOLLOWING A DAYLONG WAVE OF PROFITTAKING AND ADJUSTMENTS FOLLOWING THE MARKET'S RECENT BIG GAINS IN MILAN SHARE PRICES ENDED LOWER PULLED DOWN BY THE AUTO SECTOR THOUGH A BRIGHT SPOT EMERGED IN LATE DEALINGS ON NEWS THAT AN ITALIAN BANK PRIVATIZATION WOULD PROCEED AS SCHEDULED IN MADRID STOCKS FELL IN A CONTINUING ADJUSTMENT FOLLOWING LAST WEEK'S SHARP RALLY BUT IN ZURICH STOCKS ROSE IN ACTIVE DEALINGS WITH MOST SWISS AND FOREIGN INVESTORS FOCUSING ON ISSUES THAT RESPOND TO ECONOMIC CYCLES AMONG CORPORATE DEVELOPMENTS IN FRANKFURT MAN FELL 150 MARKS TO 325 MARKS 19321 THE INDUSTRIAL CONGLOMERATE'S MAN NUTZFAHRZEUGE COMMERCIALTRUCK UNIT REPORTED PROFIT FOR THE YEAR ENDED JUNE 30 PLUNGED 87 TO 32 MILLION MARKS 19 MILLION FROM A YEAR EARLIER AND SAID IT PLANNED TO ELIMINATE ABOUT 3400 OR 12 OF ITS 28283 JOBS IN THE CURRENT FISCAL YEAR AND TO CONTINUE SHORTENED SHIFTS FOR 4000 WORKERS THE REDUCTIONS COULD SAVE 40 MILLION MARKS ANNUALLY IN PERSONNEL COSTS 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 9310280141 931028 ECONOMY DURABLEGOODS ORDERS CLIMBED 07 IN MONTH BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ORDERS FOR BIGTICKET FACTORY ITEMS ROSE 07 IN SEPTEMBER THE COMMERCE DEPARTMENT SAID WITH GAINS POSTED ACROSS MOST MAJOR INDUSTRIES THE RISE TO 13279 BILLION WAS THE THIRD IN FOUR MONTHS AND LED MANY ECONOMISTS TO SUGGEST THAT THE MANUFACTURING SECTOR HAS TURNED TOWARD MORE CONSISTENT GROWTH ORDERS FOR DURABLE GOODS ROSE 26 IN AUGUST AND FELL 28 IN JULY AFTER RISING IN JUNE IT SEEMS THAT WE MAY BE FINALLY BREAKING OFF SOME SORT OF PLATEAU SAID ROBERT DEDERICK CHIEF ECONOMIST AT NORTHERN TRUST WE COULD BE ENTERING A NEW STAGE OF ADVANCEMENT IN THE EXPANSION US FACTORIES HAD A WEAK SUMMER WITH SLOW ORDERS SLUGGISH PRODUCTION AND CONTINUOUS CUTS IN EMPLOYMENT ANALYSTS DOUBTED THAT RECENT GROWTH IN THE MANUFACTURING SECTOR WOULD TRANSLATE INTO MORE JOBS BUT SAID IT MAY LESSEN THE EMPLOYMENT LOSSES THAT SEEM TO HAVE BECOME RAMPANT AT FACTORIES ORDERS FOR ELECTRONIC EQUIPMENT WERE UP MORE THAN ANY OTHER CATEGORY IN SEPTEMBER RISING 3 AFTER A 29 DECLINE IN AUGUST ORDERS FOR PRIMARY METALS AND INDUSTRIAL MACHINERY AND EQUIPMENT ALSO POSTED GAINS HOWEVER ORDERS FOR TRANSPORTATION EQUIPMENT FELL 18 AFTER A 74 JUMP IN AUGUST THE DROP WAS MAINLY DUE TO A SLUMP IN AIRCRAFT ORDERS EXCLUDING AIRCRAFT AND PARTS ORDERS FOR CAPITAL GOODS WERE UP 34 LAST MONTH AFTER A 18 INCREASE IN AUGUST ANALYSTS SAID THE INCREASE IN DURABLE GOODS ORDERS DESPITE A SETBACK IN AIRCRAFT ORDERS IS AN ENCOURAGING SIGN ORDERS FOR DURABLE GOODS TEND TO BE VOLATILE OFTEN POSTING DECLINES OR GAINS DEPENDING ON ORDERS FOR AIRCRAFT UNFILLED ORDERS DECLINED IN SEPTEMBER FOR THE SEVENTH STRAIGHT MONTH IN SEPTEMBER SUGGESTING THAT MANUFACTURERS ARE HAVING LITTLE TROUBLE MEETING DEMAND WITH THEIR CURRENT WORK FORCE THAT COULD MEAN CONTINUED BAD NEWS FOR ADDED FACTORY EMPLOYMENT WHICH TENDS TO THE BEST SOURCE OF HIGHPAYING JOBS FOR LOWSKILL WORKERS ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES ON NEW ORDERS FOR DURABLE GOODS SEASONALLY ADJUSTED IN BILLIONS 9310280140 931028 WHO'S NEWS ASARCO INC ASARCO INC NEW YORK MICHAEL O VARNER 51 YEARS OLD WAS NAMED VICE PRESIDENTENVIRONMENTAL OPERATIONS A NEW POSITION MR VARNER HAD BEEN GENERAL MANAGER OF THE MINING COMPANY'S WESTERN METALS DIVISION 9310280139 931028 MARKETING & MEDIA PRODIGY CABLE TV PROMOTION WHITE PLAINS NY PRODIGY A MAJOR ONLINE COMPUTER NETWORK SAID IT WILL PROVIDE A NEW SERVICE IN NOVEMBER ALLOWING CABLE NETWORKS TO PROMOTE SHOWS CABLE NETWORKS THAT SIGN UP CAN LIST PROGRAMS CONDUCT VIEWER POLLS AND SET UP BULLETIN BOARDS WHICH ALLOW VIEWERS TO SEND COMMENTS TO A NETWORK AND COMMUNICATE WITH EACH OTHER MORE THAN 15 CABLE CHANNELS HAVE AGREED TO PARTICIPATE THE PRODIGY SERVICE WITH MORE THAN TWO MILLION MEMBERS IS A PARTNERSHIP BETWEEN SEARS ROEBUCK & CO AND INTERNATIONAL BUSINESS MACHINES CORP 9310280138 931028 BUSINESS BRIEF INTEGRATED HEALTH SERVICES TO ACQUIRE UNIT OF CANADA'S TRIZEC FOR 86 MILLION OWINGS MILLS MD INTEGRATED HEALTH SERVICES INC SAID IT SIGNED AN AGREEMENT TO ACQUIRE SUBSTANTIALLY ALL OF A UNIT OF TRIZEC CORP FOR ABOUT 86 MILLION A MOVE THAT SIGNIFICANTLY EXPANDS INTEGRATED'S NETWORK OF SUBACUTE HEALTH SERVICES INTEGRATED HEALTH WILL ACQUIRE CENTRAL PARK LODGES' US ASSETS INCLUDING 39 LONGTERM CARE AND RETIREMENT FACILITIES WITH 5050 BEDS IN FLORIDA TEXAS AND PENNSYLVANIA THE UNIT ALSO OPERATES PHARMACY SERVICES AND A HOME HEALTHCARE BUSINESS AND HAD 1992 REVENUE OF 137 MILLION IN THE US INTEGRATED HEALTH'S 1992 REVENUE WAS 195 MILLION SUBACUTE CARE IS GENERALLY FOR MEDICALLY STABLE PATIENTS WHO NEED TO BE MONITORED CLOSELY AND INCLUDES VENTILATOR THERAPY WOUND MANAGEMENT AND POSTOPERATIVE CARE THE SAVINGS OF THIS APPROACH COMPARED WITH TRADITIONAL ACUTE CARE IN HOSPITALS RANGE FROM 30 TO 60 ACCORDING TO INTEGRATED HEALTH THE COMPANY OPERATES 67 FACILITIES WITH MORE THAN 8700 BEDS INCLUDING 2300 SUBACUTE BEDS THE AGREEMENT CALLS FOR INTEGRATED HEALTH TO PAY TRIZEC 86 MILLION REPAY ABOUT 50 MILLION IN INTERCOMPANY DEBT AND ASSUME ABOUT 46 MILLION IN OTHER DEBT INTEGRATED HEALTH WILL ALSO ISSUE TRIZEC A CALGARY ALBERTA REALESTATE CONCERN WARRANTS TO ACQUIRE 100000 OF ITS SHARES INTEGRATED HEALTH SAID THE TRANSACTION WILL ADD TO 1994 EARNINGS IN ADDITION THE COMPANY'S BANK HAS AGREED TO DOUBLE ITS LINE OF CREDIT TO 200 MILLION INTEGRATED HEALTH'S SHARES CLOSED AT 2775 UP 1125 OR 42 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ON THE TORONTO STOCK EXCHANGE TRIZEC'S CLASS A SHARES CLOSED AT 85 CANADIAN CENTS 645 US CENTS UP SIX CANADIAN CENTS ITS CLASS B SHARES ROSE FIVE CANADIAN CENTS TO 80 CANADIAN CENTS WILLARD L'HEUREUX TRIZEC'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE SALE OF THE RETIREMENT AND NURSINGHOME BUSINESS IN THE US WON'T AFFECT THE COMPANY'S CONTINUING EFFORTS TO RESTRUCTURE 19 BILLION CANADIAN DOLLARS US14 BILLION OF DEBT HE SAID THE PROCEEDS FROM THE SALE WILL BENEFIT TRIZEC'S US OPERATING SUBSIDIARY WHEREAS THE DEBT TO BE RESTRUCTURED IS AT THE HOLDING COMPANY LEVEL ONLY TRIZEC WHICH HAS BEEN HURT BY YEARS OF WEAK PROPERTY MARKETS HAS PROPOSED EXCHANGING MUCH OF ITS DEBT FOR NEW EQUITY THE PLAN WOULD REDUCE TO ABOUT 12 FROM 52 CURRENTLY THE OWNERSHIP STAKE HELD BY A GROUP OF COMPANIES CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN WHOSE CORPORATE EMPIRE INCLUDES THE ROYAL TRUSTCO FINANCIALSERVICES CONCERN MR L'HEUREUX SAID THE SALE OF THE RETIREMENT AND NURSING HOMES REFLECTS TRIZEC'S DECISION TO FOCUS ON ITS OFFICE PROPERTY AND SHOPPINGCENTER HOLDINGS IN THE US AND CANADA HE SAID THE COMPANY COULD SELL ITS CANADIAN NURSINGHOME BUSINESS IN THE FUTURE 9310280137 931028 THE LOSS OF FISHER IS A SHOCK TO SYSTEM FOR MOTOROLA INC CEO DEPARTS AFTER FIVE YEARS OF CREATING A TURNAROUND TOOKER IS POSSIBLE SUCCESSOR BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL THE DEPARTURE OF GEORGE MC FISHER THE APOSTLE OF THE WIRELESS REVOLUTION IS A BLOW TO MOTOROLA INC DURING HIS FIVEYEAR STINT AS CHIEF EXECUTIVE OFFICER MOTOROLA BECAME THE WORLD'S MARKET LEADER IN PAGERS CELLULAR PHONES AND TWOWAY RADIOS MR FISHER GAINED A REPUTATION FOR CANNILY BETTING BILLIONS OF DOLLARS ON NEW PLANTS WITH NEW MANUFACTURING TECHNOLOGIES AND ON RESEARCH AND DEVELOPMENT THAT RAPIDLY CHURNED OUT EVER CHEAPER MORE RELIABLE AND ADVANCED PRODUCTS LEAVING FORMIDABLE JAPANESE COMPETITORS IN HIS WAKE HIS EXIT MAKES GARY TOOKER MOTOROLA'S PRESIDENT AND CHIEF OPERATING OFFICER THE FAVORITE TO SUCCEED HIM MR TOOKER WAS NAMED ACTING CHIEF EXECUTIVE BY THE BOARD WHICH WILL MEET TOMORROW TO DECIDE HOW TO PROCEED WITH NAMING A PERMANENT SUCCESSOR OTHER POSSIBILITIES ARE JAMES A NORLING PRESIDENT OF MOTOROLA'S PIVOTAL SEMICONDUCTOR GROUP AND CHRISTOPHER B GALVIN SENIOR EXECUTIVE VICE PRESIDENT WHO IS THE SON OF FORMER CEO ROBERT GALVIN AND THE GRANDSON OF MOTOROLA'S FOUNDER PAUL GALVIN MR FISHER'S DECISION TO LEAVE MOTOROLA HAS TO BE PURELY PERSONAL AND FINANCIAL SAID ONE BUSINESSMAN WHO KNOWS HIM WELL MOTOROLA MANAGERS HINTED THAT MR FISHER'S DEPARTURE WAS MAINLY MOTIVATED BY THE SIZE OF KODAK'S FINANCIAL PACKAGE WHICH IS EXPECTED TO BE LINKED TO THE CHALLENGE OF RESTORING KODAK'S GROWTH OTHER CHIEF EXECUTIVES WHO GREATLY INCREASED THE MARKET VALUE OF THEIR COMPANIES SUCH AS MICHAEL EISNER AT DISNEY AND THE LATE STEVE ROSS AT WARNER WENT FROM WELLCOMPENSATED EXECUTIVES TO TYCOONS IN THEIR OWN RIGHTS BY VIRTUE OF HUGE STOCKOPTION STAKES IN THEIR FIRMS' RECOVERY IT'LL BE LIKE ROSS AND EISNER SPECULATED MR FISHER'S FRIEND WHO SAID HE HAD NO PERSONAL KNOWLEDGE OF THE OFFER'S TERMS IT'S A SHOT AT 100 MILLION MR FISHER WAS WELL PAID AT MOTOROLA RECEIVING 15 MILLION IN SALARY AND BONUSES LAST YEAR PLUS STOCK OPTIONS THAT ARE ABOUT 4 MILLION IN THE MONEY SO FAR THIS YEAR BUT CONSIDERING MOTOROLA'S ACHIEVEMENT OF WORLD DOMINANCE ITS ACCELERATING GROWTH AND THE NEARQUADRUPLING OF ITS STOCK PRICE IN THE PAST TWO YEARS HE COULD BE CONSIDERED UNDERPAID OBSERVERS COULDN'T FIGURE OUT ANY OTHER EXPLANATION FOR MR FISHER'S DEPARTURE FROM A COMPANY ON A WORLDWIDE ROLL IN SEMICONDUCTORS AND COMMUNICATIONS PRODUCTS FOR A COMPANY THAT HASN'T YET FIGURED OUT A WAY TO EMERGE FROM THE ELECTROMECHANICAL AGE IT'S A SHOCK TO ME SAID ANTHONY HOLBROOK VICE CHAIRMAN AND CHIEF TECHNICAL OFFICER FOR ADVANCED MICRO DEVICES MUTTERED THE HEAD OF ANOTHER CHIP COMPANY IT'S INCREDIBLE IT'S INCREDIBLE NOW WITH MR FISHER GONE THE ODDSON FAVORITE HAS TO BE MR TOOKER SAID STEVEN SHAPIRO A MONEY MANAGER AT ONE OF MOTOROLA'S BIGGEST SHAREHOLDERS FIDELITY MANAGEMENT & RESEARCH CO CHRISTOPHER GALVIN WHO IS 43 YEARS OLD IS 11 YEARS YOUNGER THAN MR TOOKER BUT MR TOOKER IS AN ELECTRICAL ENGINEER AND MAY HAVE THE TECHNICAL EXPERIENCE THE BOARD DESIRES UNLIKE MOST HEIRS CHRISTOPHER GALVIN IS SAID TO BE JUST AS CANNY AS HIS FATHER AND GRANDFATHER WHO WERE CHARISMATIC SALESMEN WITH LITTLE TECHNICAL TRAINING BUT A SHREWD KNACK FOR DIVINING TECHNOLOGICAL DIRECTIONS GARY IS OLD SCHOOL A TOUGH COOKIE MUCH MORE EMOTIONAL SAID ONE MOTOROLA SUPPLIER CHRIS HAS MORE HORSEPOWER MORE DIPLOMATIC SKILLS AND MORE SUBTLETY OF MIND AND ACTION MR SHAPIRO PREDICTED THAT MOTOROLA'S STOCK MIGHT TAKE A HIT THIS MORNING BUT HE SAID THE COMPANY'S MANAGEMENT IS DEEP THIS ISN'T A ONEPERSON COMPANY HE SAID NONETHELESS MR FISHER'S DEPARTURE WAS CHARACTERIZED BY THE MOTOROLA SUPPLIER AS A SERIOUS BLOW BECAUSE OF MR FISHER'S PERSONALITY SKILLS AND RECORD MOTOROLA OFFICIALS SAY MR FISHER IS A LEVELHEADED LEADER ADEPT AT MANAGING CONFLICT AND ENCOURAGING CREATIVITY WITHIN THE COMPANY'S SOMETIMESCONTENTIOUS FACTIONS THERE ARE NO OFFICE POLITICS AT MOTOROLA ONE MANAGER SAID IN A PREVIOUS INTERVIEW MR FICHER ALSO IS A MANUFACTURING EXPERT CREDITED WITH LEADING THE DESIGN AND MANUFACTURING BREAKTHROUGHS IN THE MID1980S THAT ALLOWED MOTOROLA TO MAKE SMALLER CHEAPER AND MORE RELIABLE PAGERS THAN THE JAPANESE RECAPTURING A MARKET THAT HAD BEEN DEEMED LOST TO US COMPANIES SINCE MR FISHER BECAME CHIEF EXECUTIVE IN 1988 MOTOROLA HAS GAINED A REPUTATION FOR MAKING CANNY BETS ON NEW TECHNOLOGY BOTH IN SEMICONDUCTORS AND MANUFACTURING PROCESSES THE BETS WERE HUGE MOTOROLA SPENDS MORE THAN 2 BILLION A YEAR ON PLANT AND EQUIPMENT AND RESEARCH AND DEVELOPMENT DURING MR FISHER'S TENURE AS CHIEF EXECUTIVE MOTOROLA'S SALES GREW FROM 8 BILLION TO AN ESTIMATED 16 BILLION THIS YEAR ITS EARNINGS THIS YEAR ARE EXPECTED TO REACH 922 MILLION OR 335 A SHARE UP 60 FROM LAST YEAR 9310280136 931028 THE CLINTON HEALTH PLAN PAPER IS PASSE PRESS GETS COPIES OF PLAN ON DISKS WASHINGTON TAKING ANOTHER STEP INTO THE ELECTRONIC AGE THE WHITE HOUSE DISTRIBUTED COPIES OF PRESIDENT CLINTON'S HEALTHCARE BILL TO REPORTERS ON COMPUTER DISKS INSTEAD OF PAPER AS HAS BEEN THE CUSTOM IN THE PAST IT'S CHEAPER THAN THE PRINTED COPY A DOLLAR A DISK SAID JEFF ELLER DIRECTOR OF MEDIA AFFAIRS AT THE WHITE HOUSE IT'S ALSO QUICKER THE WHITE HOUSE GOT THE FINAL VERSION OF THE LEGISLATION TO THE GOVERNMENT PRINTING OFFICE TUESDAY TOO LATE TO HAVE COPIES FOR THE PRESS YESTERDAY MORNING MR ELLER SAID WE TOOK THE DISKS INTO A VENDOR AT 730 THIS MORNING AND GOT 750 SETS HE ADDED PRINTED COPIES OF THE 1336PAGE LEGISLATION WRITTEN IN LEGALESE AND A MOREREADABLE 132PAGE DOCUMENT CALLED THE PRESIDENT'S REPORT TO THE AMERICAN PEOPLE WERE AVAILABLE BY YESTERDAY AFTERNOON THE GOVERNMENT PRINTING OFFICE IS CHARGING 45 FOR THE HEALTHCARE BILL AND 5 FOR THE PRESIDENT'S REPORT THE COMPUTER DISKS WERE AVAILABLE ONLY TO THE PRESS BOTH DOCUMENTS AND MR CLINTON'S SEPT 22 SPEECH TO CONGRESS ON HEALTH CARE FIT ON A PAIR OF 3 1/2INCH COMPUTER DISKS 9310280135 931028 BUSINESS BRIEF HORNBECK OFFSHORE SERVICES INC TEXAS CONCERN PLANS CHARGE OF 550000 IN 4TH QUARTER HORNBECK OFFSHORE SERVICES INC SAID IT WILL TAKE A CHARGE OF 550000 OR FOUR CENTS A SHARE IN THE FOURTH QUARTER BECAUSE OF A FAILED ATTEMPT TO RECOVER A SUNKEN VESSEL THE GALVESTON TEXAS OFFSHORE ENERGY SERVICES COMPANY NO LONGER OWNED THE TITLE TO THE VESSEL BUT HAD PAID A SALVAGE COMPANY TO RAISE THE SHIP WHICH SANK IN 1991 IN THE GULF OF MEXICO THE VESSEL WHICH WAS USED TO COLLECT GEOLOGICAL DATA HAD BEEN BROUGHT TO THE SURFACE LAST WEEK BUT SANK AGAIN WHEN A STORM HIT DIVERS DISCOVERED EXTENSIVE INTERNAL DAMAGE AND HORNBECK DECIDED TO END EFFORTS TO SALVAGE THE SHIP HORNBECK WHICH OWNS A FLEET OF 51 VARIOUS TYPES OF VESSELS SAID THE TITLE HAD BEEN TRANSFERRED TO THE INSURER WHEN THE SHIP FIRST SANK THEN TO THE SALVAGE COMPANY HORNBECK PAID THE SALVAGE COMPANY A FEE PLUS A DAILY CHARGE DURING THE SALVAGE OPERATION TO REACQUIRE THE SHIP FOR THE 1992 FOURTH QUARTER HORNBECK REPORTED NET INCOME OF 12 MILLION OR 12 CENTS A SHARE ON REVENUE OF 73 MILLION 9310280133 931028 AMOCO SELLS STAKE IN OK TEDI CHICAGO AMOCO CORP SAID IT SOLD ITS 30 OWNERSHIP IN OK TEDI MINING LTD IN PAPUA NEW GUINEA TO BROKEN HILL PROPRIETARY CO OF AUSTRALIA TERMS WEREN'T DISCLOSED AMOCO HAD LEFT THE MINING BUSINESS IN 1985EXCEPT FOR OK TEDI A COPPER MINEBY SPINNING OFF ITS MINERALS UNIT TO SHAREHOLDERS IN A COMPANY NOW CALLED CYPRUS MINERALS AMOCO SAID IT PLANS TO CONCENTRATE ON ITS CORE OIL NATURALGAS CHEMICALREFINING AND MARKETING BUSINESS BROKEN HILL AUSTRALIA'S LARGEST CORPORATION WITH INTERESTS IN STEEL MINING OIL AND GAS OPERATES THE OK TEDI MINE 9310280132 931028 MARKETING & MEDIA TIMES MIRROR TO ACQUIRE DUSHKIN LOS ANGELES TIMES MIRROR CO SAID ITS WMC BROWN COMMUNICATIONS INC UNIT AGREED IN PRINCIPLE TO ACQUIRE DUSHKIN PUBLISHING GROUP INC A PRIVATELY HELD PUBLISHER OF COLLEGE TEXTBOOKS AND RELATED PRODUCTS BASED IN GUILFORD CONN TIMES MIRROR THE LOS ANGELES PUBLISHER OF THE LOS ANGELES TIMES AND OTHER NEWSPAPERS SAID THE ACQUISITION WOULD SIGNIFICANTLY STRENGTHEN THE COMPANY'S POSITION IN THE COLLEGETEXTBOOK AREA TERMS WEREN'T DISCLOSED TIMES MIRROR SAID IT HOPES TO COMPLETE THE TRANSACTION BY EARLY DECEMBER 9310280131 931028 INTERNATIONAL MUBARAK SEES EXTREMIST THREAT FADING DESPITE ATTACKS ON FOREIGNERS IN EGYPT BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THOUGH HIS CAPITAL HAS JUST BEEN THE SITE OF A BLOODY ATTACK ON FOREIGNERS EGYPTIAN PRESIDENT HOSNI MUBARAK INSISTS THE THREAT FROM ISLAMIC EXTREMISTS IN EGYPT IS DECLINING OVERALL NOWADAYS IT'S GOING DOWN SHARPLY DOWN MR MUBARAK SAID IN AN INTERVIEW DURING A VISIT HERE WHERE HE MET WITH PRESIDENT CLINTON AND CONGRESSIONAL LEADERS THE INCIDENCE OF TERRORIST ATTACKS IS DECREASING SHARPLY HE SAID FURTHERMORE MANY OF THOSE RESPONSIBLE FOR TERRORIST ACTS HE CLAIMED AREN'T MUSLIM FUNDAMENTALISTS SOME OF THEM ARE BEING PAID MONEY TO KILL TO CREATE PROBLEMS HERE AND THERE MR MUBARAK SPOKE TUESDAY NIGHT JUST BEFORE NEWS BROKE OF AN ATTACK BY A GUNMAN IN WHICH TWO AMERICANS AND A FRENCHMAN WERE KILLED AT A LUXURY HOTEL IN CAIRO REPORTS FROM CAIRO INDICATE THAT THE ATTACK WAS CARRIED OUT BY A 28YEAROLD SINGER WHO APPEARED TO BE UPSET OVER THE DEATHS OF MUSLIMS AMID CIVIL STRIFE IN BOSNIA OFFICIALS IN EGYPT CALLED THE ATTACKER A MENTALLY DERANGED MAN WHO ISN'T AFFILIATED WITH ISLAMIC EXTREMIST ORGANIZATIONS THE SHOOTING WAS JUST THE LATEST IN A STRING OF ATTACKS AIMED AT FOREIGNERS IN EGYPT THAT HAVE SCARED OFF VISITORS ERODING THE NATION'S VITAL TOURIST INDUSTRY ISLAMIC EXTREMISTS HAVE MADE IT CLEAR THAT THEY HOPE AN EXODUS OF FOREIGNERS WITH THEIR HARD CURRENCY WILL UNDERMINE THE MUBARAK GOVERNMENT AND PAVE THE WAY FOR A FUNDAMENTALIST REGIME IN THE ARAB WORLD'S MOST POPULOUS NATION THAT IN TURN WOULD REPRESENT A FOREIGN POLICY DISASTER FOR THE US WHICH CONSIDERS EGYPT ITS CLOSEST FRIEND IN THE ARAB WORLD AND BELIEVES STABILITY THERE IS ESSENTIAL TO THE ARABISRAELI PEACE PROCESS DESPITE THREATS FROM FUNDAMENTALISTS MR MUBARAK PLEDGED TO KEEP PUSHING EGYPT DOWN A DEMOCRATIC PATH WE ARE GOING THROUGH DEMOCRACY HE SAID THE INGREDIENTS OF DEMOCRACY EXIST FREE PRESS A MULTIPLEPARTY SYSTEM FREEDOM OF EXPRESSION FREE PARLIAMENTARY ELECTIONS WE ARE GOING THROUGH DEMOCRACY WHILE HE HAS TAKEN STEPS TO OPEN UP THE EGYPTIAN POLITICAL SYSTEM MR MUBARAK HIMSELF WAS RECENTLY REELECTED TO A THIRD TERM AS PRESIDENT IN A RACE IN WHICH HE WAS UNOPPOSED ON OTHER ISSUES MR MUBARAK SUGGESTED THAT THE US REFRAIN FROM PRESSING ARAB NATIONS TOO HARD TO DECLARE AN IMMEDIATE OFFICIAL END TO THEIR ECONOMIC BOYCOTT OF ISRAEL AS A WAY TO PUSH THE PEACE PROCESS AHEAD MR MUBARAK SAID THE BOYCOTT UNDER WHICH ARAB NATIONS OUTSIDE OF EGYPT HAVE PLEDGED NOT TO DO BUSINESS WITH COMPANIES OPERATING IN ISRAEL IS EVAPORATING ON ITS OWN BUT HE ALSO ARGUED THAT PRESSING FOR A DECLARATION OF ITS DEMISE COULD CAUSE A PUBLIC BACKLASH THAT WOULD COMPLICATE THE PEACE EFFORT GIVE SOME TIME HE SAID IF THERE IS TOO BIG A PUSH FOR A DECLARATION OF THE BOYCOTT'S END HE ASSERTED PUBLIC OPINION IN THE WHOLE AREA MAY CREATE PROBLEMS FOR HEADS OF STATE AT THAT TIME AND MAY CREATE PROBLEMS FOR THE PEACE PROCESS TO MOVE FORWARD RECOMMENDED THAT THE US LOOK TO AFRICAN LEADERS TO DEFUSE THE CRISIS IN SOMALIA MR MUBARAK WHO HAS BEEN ACTIVE IN THE PANAFRICAN POLITICAL MOVEMENT SAID HE HAD LONG TALKS ON SOMALIA WITH PRESIDENT CLINTON DURING THEIR MEETINGS THIS WEEK HE SUGGESTED RELYING ON THE LEADERS OF ETHIOPIA IN PARTICULAR TO INTERCEDE WITH SOMALIA'S CLAN LEADERS TO FORM A COALITION GOVERNMENT AND THEN TO HELP UN FORCES DISARM THE CLANS IT IS DIFFICULT FOR FOREIGN FORCES THERE TO DO DISARMAMENT HE SAID BUT HE ADDED WITH THE HELP OF AFRICAN LEADERS IT MAY BE POSSIBLE TO ACCOMPLISH A DISARMAMENT BEFORE AMERICAN FORCES LEAVE AT THE END OF MARCH URGED THE US TO KEEP AID LEVELS FOR EGYPT STEADY AT LEAST FOR THE NEXT FEW YEARS WHILE THE NATION'S ECONOMIC REFORM PROGRAMS UNFOLD IN PARTICULAR HE ARGUED AGAINST A QUICK DECLINE IN MILITARY AID AS A RESULT OF THE ACCELERATING PEACE PROCESS INSISTING THAT HIS REGION REMAINS DANGEROUS AND THAT EGYPT'S MILITARY IS IN THE MIDST OF PROCUREMENT PROJECTS THAT STRETCH OUT UNTIL 1996 I KNOW IT'S NOT GOING TO STAY FOREVER MR MUBARAK SAID OF EGYPT'S 21 BILLION AID PROGRAM BUT HE PLEADED FOR A STEADY CONTINUATION DURING AT LEAST THE PERIOD OF ECONOMIC REFORM WHICH WE ARE PASSING THROUGH THE EGYPTIAN PRESIDENT ALSO ISSUED AN EMOTIONAL PLEA TO AMERICANS NOT TO WITHDRAW INTO ISOLATIONISM FOLLOWING THE END OF THE COLD WAR THE PRINCIPLE OF ISOLATIONISM FOR SUCH A BIG COUNTRY AS THE US ISN'T ACCEPTABLE HE SAID IT'S VERY BAD YOU ARE A BIG SUPERPOWER YOU HAVE AN OBLIGATION TOWARD ALL THE INTERNATIONAL EVENTS HERE AND THERE MR MUBARAK ARGUED THAT CONTINUED INVOLVEMENT IN WORLD AFFAIRS IS IMPORTANT FOR AMERICA'S OWN ECONOMIC WELLBEING AND AS A FRIEND OF AMERICA MR MUBARAK SAID WHEN HE FIRST BEGAN HEARING TALK OF A POSSIBLE US RETREAT INTO ISOLATIONISM I WAS TERRIFIED TERRIFIED 9310280130 931028 BUSINESS BRIEFS WESTSPHERE CAPITAL ASSOCIATES LP THROUGH ITS MLN EQUITY LTD HOLDING UNIT ACQUIRED THE FORMER MAYO LABORATORY NETWORK FOR 236 MILLION THE ACQUIRED COMPANY WILL NOW BE KNOWN AS MEDICAL LABORATORY NETWORK INC TERMS WEREN'T DISCLOSED OWENSCORNING FIBERGLAS CORP SIGNED A LETTER OF INTENT WITH ALPHA CORP OF TENNESSEE TO COMBINE FIVE RESIN OPERATIONS OF BOTH COMPANIES INTO A 5050 JOINT VENTURE EVERGREEN MEDIA CORP SIGNED A LETTER OF INTENT TO ACQUIRE THE ASSETS OF RADIO STATION KIOIFM IN SAN FRANCISCO FROM A UNIT OF FAIRMONT COMMUNICATIONS CORP FOR 45 MILLION DDI PHARMACEUTICALS INC A DRUGDEVELOPMENT CONCERN APPOINTED A COMMITTEE TO CONSIDER A POSSIBLE MERGER OR OTHER BUSINESS COMBINATION WITH INTERNATIONAL BIOCLINICAL INC PORTLAND ORE DIEBOLD INC CANTON OHIO AGREED TO ACQUIRE 50 OF OLTP ATM SYSTEMS CA OF CARACAS VENEZUELA OLTP DISTRIBUTES INSTALLS AND SERVICES DIEBOLD'S AUTOMATED TELLER MACHINES AND SECURITY PRODUCTS IN VENEZUELA TERMS WEREN'T DISCLOSED 9310280129 931028 POLITICS & POLICY THE CLINTON HEALTH PLAN THE MILLS OF HEALTHCARE REFORM GRIND SLOWLY IN WHITE HOUSE EFFORT TO PROMOTE CLINTON PLAN BY JEFFREY H BIRNBAUM AND GERALD F SEIB STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON ALL IS QUIET IN THE WHITE HOUSE'S WAR ROOM FOR HEALTH CARE TOO QUIET SO YOUNG STAFF MEMBER JASON SOLOMON HEAVES A GREENANDPURPLE FOOTBALL AT THE ROOM'S TWO SENIOR AIDES COORDINATOR JEFF ELLER AND PRESS SECRETARY MARLA ROMASH IF YOU KNOCK OUT MY COMPUTER MS ROMASH GROWLS YOU'RE DEAD AND THEN SHE AND EVERYONE ELSE GOES BACK TO THE SLOW AND STEADY BUSINESS OF SELLING PRESIDENT CLINTON'S HEALTHCARE PLAN THE LAST TIME THE WHITE HOUSE HAD A POLITICAL WAR ROOM IN THIS VERY SAME CROWDED OFFICE VOLUBLE STAFF MEMBERS ENGAGED IN A MONTHLONG SPRINT TO PASS THE PRESIDENT'S DEFICITREDUCTION BILL NOBODY HAD TO THROW FOOTBALLS TO BREAK THE MONOTONY BUT THE JOB OF PASSING AN OVERHAUL OF THE NATION'S HEALTHCARE SYSTEM A TASK PRESIDENT CLINTON FORMALLY LAUNCHED YESTERDAY BY UNVEILING HIS HEALTH LEGISLATION WILL BE A MARATHON LASTING A YEAR OR MORE IT'S ALREADY CLEAR THE WHITE HOUSE FACES SOME UPHILL RUNNING A NEW WALL STREET JOURNAL/NBC NEWS POLL SHOWS THAT WHILE THERE STILL IS GENERAL SUPPORT FOR MR CLINTON'S HEALTHCARE PLAN SIGNIFICANT OPPOSITION ALSO HAS TAKEN ROOT IN THE MONTH SINCE THE PRESIDENT MADE A NATIONALLY TELEVISED SPEECH TO CONGRESS TO PREVIEW IT JUST UNDER HALF OF THE 1508 ADULTS SURVEYED FRIDAY THROUGH TUESDAY OR 47 SAID THEY FAVOR MR CLINTON'S HEALTHCARE PROGRAM DOWN SLIGHTLY FROM 51 JUST AFTER THE PRESIDENT'S SEPTEMBER SPEECH MORE SIGNIFICANTLY THOUGH THE SHARE OF THOSE WHO EXPRESS OPPOSITION HAS MORE THAN DOUBLED TO 37 FROM 18 IN ANOTHER POTENTIAL TROUBLE SPOT FOR THE WHITE HOUSE 34 OF THOSE SURVEYED SAID THEY EXPECT THE CLINTON PLAN TO HURT THEM AND THEIR FAMILIES COMPARED WITH 21 WHO EXPECT TO BE HELPED YOU'VE HAD THE OPPOSITION COALESCE IN THE WEEKS SINCE MR CLINTON ADDRESSED THE NATION SAYS REPUBLICAN POLLSTER ROBERT TEETER WHO CONDUCTED THE JOURNAL/NBC NEWS SURVEY ALONG WITH DEMOCRATIC POLLSTER PETER HART THE SURVEY SUGGESTS THAT IN ADDITION TO THE INCREASE IN THE NUMBER OF PEOPLE WHO THINK THE PLAN COULD HURT THEM THERE ALSO HAS BEEN AN INCREASE IN THOSE WHO FEAR IT WILL BRING A TAX INCREASE MR TEETER SAYS SUCH RESULTS ONLY UNDERSCORE THE SIZE OF THE JOB FACING THE WHITE HOUSE AIDES ASSEMBLED HERE TO SELL A PLAN THAT IS MEANT TO BE THE CORNERSTONE OF THE CLINTON PRESIDENCY I START FROM THE PROPOSITION THAT THEY HAVE A MUCH HARDER JOB SAYS DEPUTY TREASURY SECRETARY ROGER ALTMAN WHO HEADED THE EARLIER WAR ROOM FOR THE BUDGET BILL WE WERE IN BUSINESS FOR A FEW WEEKS THEY ARE IN BUSINESS FOR MANY MONTHS AND THE BUDGET ISN'T NEARLY AS COMPLICATED AS HEALTHCARE REFORM ONE TASK THE WHITE HOUSE FACES IS SIMPLY KEEPING UP PUBLIC ENTHUSIASM FOR THE IDEA OF HEALTHCARE REFORM THE FLURRY OF ACTIVITY SURROUNDING THE UNVEILING OF THE FORMAL CLINTON LEGISLATION SUGGESTS HOW THE WHITE HOUSE HOPES TO ACCOMPLISH THAT DELIVERY OF THE LEGISLATION TO CONGRESS WAS DONE WITH GREAT HOOPLA BOTH BILL AND HILLARY RODHAM CLINTON MADE THE TRIP CONVERTING WHAT IS NORMALLY A ROUTINE EVENT INTO A SPECTACLE THE WHITE HOUSE ALREADY IS PLANNING OTHER EXTRAVAGANZAS INCLUDING FOCUSING THE PRESIDENT'S STATE OF THE UNION SPEECH ON HEALTH CARE EARLY NEXT YEAR AND STAGING A PRESIDENTIAL BUS TRIP TO HIGHLIGHT ISSUE BUT MOST OF THE HEALTHCARE WAR WILL BE A DAILY SLOG COORDINATED BY THE WAR ROOM IN ADDITION TO THE HIGHINTENSITY TIMES SAYS MARK GEARAN THE WHITE HOUSE COMMUNICATIONS DIRECTOR THERE'S A CERTAIN LOWGRADE CONSISTENT NEED FOR INFORMATION THAT WILL BE CONDUCTED THIS INCLUDES SCHEDULING INTERVIEWS AND APPEARANCES FOR ADMINISTRATION OFFICIALS RANGING FROM CABINET OFFICERS TO THE PRESIDENT AND FIRST LADY ON TUESDAY FOR INSTANCE MR ELLER ARRANGED FOR TELEVISION REPORTERS FROM PITTSBURGH AND BUFFALO NY TO INTERVIEW MRS CLINTON AND OTHERS FROM DALLAS AND MIAMI TO INTERVIEW THE PRESIDENT OTHER STAFF MEMBERS IN THE ROOM SPECIALIZE IN RESPONDING TO CHARGES BY CRITICS OF THE PLAN WITHIN REACH OF THE 15 COMPUTERS SCATTERED AROUND THE ROOM ARE FACTS AND FIGURES THEY USE FOR QUICK REBUTTALS THE HEALTH INSURANCE ASSOCIATION OF AMERICA AND THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS ALREADY HAVE FELT THE STING THE MOST DAUNTING DIFFICULTY IS THE MERE SIZE AND SCOPE OF THE PLAN IT IS SO ELABORATE THAT IT IS HARD FOR THE PUBLIC TO UNDERSTAND TWO WALLS IN THE ROOM ARE FILLED WITH 45 FOLDERS THAT CONTAIN SINGLEPAGEATIONS OF DIFFERENT PARTS OF THE PLAN RANGING FROM WOMEN'S HEALTH TO UNDOCUMENTED PERSONS KEEPING ALL OF THIS FRESH ISN'T EASY THAT'S NEVERENDING MR ELLER SAYS NEW SELLING TOOLS WILL INCLUDE A 15MINUTE VIDEO FEATURING THE PRESIDENT IT'S HARD TO OVERSTATE THE IMPORTANCE OF THIS TASK TO THE CLINTON PRESIDENCY THE NEW JOURNAL/NBC POLL SHOWS THAT MR CLINTON'S PLEDGE TO REFORM THE HEALTHCARE SYSTEM IS FAR AND AWAY THE CAMPAIGN PROMISE MOST REMEMBERED BY AMERICANS WHEN ASKED TO RECALL ANY PROMISE MR CLINTON MADE DURING THE CAMPAIGN 34 NAME HIS PROPOSAL TO CHANGE THE HEALTH SYSTEM AND MAKE CARE AFFORDABLE FOR EVERY AMERICAN BY CONTRAST ONLY HALF AS MANY CITE HIS PROMISES ON TAXES SOME OF WHICH HAVE ALREADY BEEN BROKEN WHAT'S MORE 20 OF THOSE SURVEYED SAID THEY REGARD HEALTHCARE REFORM AS THE MOST IMPORTANT ISSUE WHEN JUDGING MR CLINTON'S LEADERSHIP THAT SHARE IS SURPASSED ONLY BY THE 31 WHO CITE DEALING WITH THE ECONOMY MR CLINTON AND HIS DEMOCRATIC PARTY BRING SOME BUILTIN ADVANTAGES TO THIS EFFORT THE POLL SHOWS THAT 44 OF THOSE SURVEYED THINK DEMOCRATS WILL DO A BETTER JOB THAN REPUBLICANS IN CHANGING THE HEALTHCARE SYSTEM WHILE JUST 16 SAY THE REPUBLICANS WOULD DO THE BETTER JOB BUT PROBLEMS FOR THE WHITE HOUSE APPEAR WHEN PEOPLE TURN TO SPECIFICS WHEN ASKED TO CONSIDER PARTICULAR CRITICISMS OF THE CLINTON PLAN LEVELED BY ITS FOES SUCH AS CHARGES THAT IT MIGHT HURT BUSINESSES RELY TOO MUCH ON THE GOVERNMENT OR LIMIT PEOPLE'S ABILITY TO CHOOSE A DOCTOR 55 ARE VERY MUCH OR A GREAT DEAL CONCERNED NOBODY SAID IT WAS GOING TO BE EASY SAYS SENIOR WHITE HOUSE AIDE GEORGE STEPHANOPOULOS IF IT WERE EASY IT WOULD HAVE BEEN DONE A LONG TIME AGO FROM WHAT YOU HAVE HEARD DO YOU FAVOR OR OPPOSE PRESIDENT CLINTON'S HEALTHCARE PROGRAM DO YOU THINK YOU AND YOUR FAMILY WILL BE HELPED BY THE CLINTON HEALTH PLAN HURT BY THE PLAN OR NOT AFFECTED EITHER WAY 9310280127 931028 MTV SPLITS OPERATIONAL DUTIES NEW YORK MTV NETWORKS RESTORED AN OPERATING STRUCTURE FROM TWO YEARS AGO NAMING TWO EXECUTIVES TO SPLIT THE MAIN DAYTODAY OPERATIONS OF ITS MTV MUSIC TELEVISION NETWORK SARA LEVINSON 43 YEARS OLD WAS NAMED PRESIDENT BUSINESS DIRECTOR WHILE JUDY MCGRATH 41 WAS NAMED PRESIDENT CREATIVE DIRECTOR MS LEVINSON PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT OF THE NETWORK AND MS MCGRATH WAS EXECUTIVE VICE PRESIDENT CREATIVE DIRECTOR OF THE OPERATION THE NEW TITLES HAVE BEEN VACANT FOR MORE THAN TWO YEARS MTV NETWORKS WHICH ALSO OPERATES THE VH1 AND NICKELODEON/NICK AT NITE NETWORKS IS A UNIT OF VIACOM INC 9310280126 931028 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION COMCAST CORP AN OFFERING OF UP TO 1 BILLION OF NEW DEBT AND EQUITY SECURITIES EXECUTIVE RISK INC AN INITIAL OFFERING OF UP TO 45 MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND MORGAN STANLEY & CO FOILMARK INC AN INITIAL OFFERING OF 11 MILLION COMMON SHARES VIA BAIRD PATRICK & CO HUGOTON ENERGY CORP AN INITIAL OFFERING OF THREE MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP SMITH BARNEY SHEARSON INC AND PETRIE PARKMAN & CO 9310280125 931028 WEDNESDAY'S MARKETS STOCKS MIXED BOND PRICES FALL AS DOLLAR RISES BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS ENDED MIXED AMID CONTINUING SIGNS THAT THE ECONOMY IS DOING BETTER THAN INVESTORS IMAGINE BOND PRICES SLUMPED AND THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE FELL 783 POINTS TO 366466 STANDARD & POOR'S 500STOCK INDEX ROSE 031 TO 46461 AND THE NASDAQ COMPOSITE INDEX RALLIED 642 TO 77188 RECOVERING FROM ITS RECENT SETBACK ANALYSTS SAID A GLOOMIERTHANEXPECTED EARNINGS REPORT FROM MINNESOTA MINING & MANUFACTURING WEIGHED ON THE INDUSTRIAL AVERAGE OVERSHADOWING A BRIGHT REPORT ON THE ECONOMY THE COMMERCE DEPARTMENT REPORT SHOWED THAT NEW FACTORY ORDERS FOR DURABLE GOODS CLIMBED A SEASONALLY ADJUSTED 07 IN SEPTEMBER FROM THE PREVIOUS MONTH RICHARD HOEY PORTFOLIO MANAGER OF THE DREYFUS GROWTH & INCOME FUND SAID THE MARKET IS BEING PRESSURED BY THE LONG ROSTER OF NEW AND SECONDARY STOCK ISSUES THAT INVESTMENT BANKERS ARE MARKETING THERE IS AN OVERWHELMING FLOOD OF STOCK FOR SALE SAID MR HOEY AND THAT IS ABSORBING SOME OF THE BUYING INTEREST IN THE MARKETPLACE ALFRED GOLDMAN DIRECTOR OF MARKET ANALYSIS AT AG EDWARDS & SONS SAID HE ISN'T DISTURBED BY THE PAUSE IN THE RECENT RALLY ONE OF THE TRENDS OF THE LATEST BULL MARKET IS THAT STOCKS GO UP THEY GIVE UP TWOTHIRDS OF THEIR ADVANCE AND THEN THEY TAKE A NAP HE SAID NO MATTER WHAT THE NEWS HAD BEEN TODAY THE MARKET WAS IN FOR SOME REST AND RELAXATION HE ADDED WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX SLIPPED 041 TO 11280 IN MAJOR MARKET ACTION STOCK PRICES ENDED MIXED VOLUME TOTALED 2771 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1031 ISSUES ROSE AND 971 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST 1/4 OF A POINT OR 250 FOR EACH 1000 FACE AMOUNT TO YIELD 60 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16795 MARKS AND 10872 YEN COMPARED WITH 16788 MARKS AND 10830 YEN LATE TUESDAY 9310280124 931028 ABREAST OF THE MARKET STOCKS END MIXED AS CYCLICAL ISSUES STUMBLE AND OTC SHARES REBOUND BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCK PRICES FINISHED MIXED ALTHOUGH A RALLY IN TECHNOLOGY STOCKS POWERED THE NASDAQ MARKET HIGHER IT WAS A DAY OF CHANGING FORTUNES CYCLICAL STOCKS THE STARS FOR SEVEN STRAIGHT SESSIONS STUMBLED WHILE OVERTHECOUNTER ISSUES SEVERELY BATTERED OF LATE BOUNCED BACK THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 783 POINTS OR 021 TO 366466 HOBBLED BY BIG LOSSES IN ECONOMICALLY SENSITIVE SHARES AMONG THEM WERE ALLIEDSIGNAL DOWN 1 7/8 TO 70 7/8 AND MINNESOTA MINING & MANUFACTURING OFF 1 5/8 TO 103 1/2 THE NASDAQ COMPOSITE INDEX THOUGH ROCKETED 642 POINTS OR 084 TO 77188 THE INDEX HAD FALLEN NEARLY 3 FROM ITS HIGHS OF EARLIER THIS MONTH COMING INTO YESTERDAY'S SESSION BROADBASED BIG BOARD INDEXES MEANWHILE FINISHED SLIGHTLY HIGHER LIFTED BY A LATE ROUND OF PROGRAM BUYING MICHAEL BIRCH A TRADER AT KIDDER PEABODY & CO SAID THE LATE GAINS MIGHT HAVE BEEN TIED TO BUYING LINKED TO THIS WEEK'S MONTH END BIG INVESTORS SOMETIMES TIME PURCHASES TO THE END OF FISCAL PERIODS THE STANDARD & POOR'S 500 STOCK INDEX ROSE 031 OR 007 TO 46461 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX INCREASED 019 OR 007 TO 25746 AND THE DOW JONES EQUITY MARKET INDEX ADDED 048 OR 011 TO 43988 ON THE BIG BOARD THERE WERE 1031 ISSUES ADVANCING AND 971 DECLINING VOLUME TOTALED 277090000 SHARES COMPARED WITH 284500000 SHARES TUESDAY BIG TECHNOLOGY GAINERS ON NASDAQ INCLUDED APPLE COMPUTER WHICH ROSE 2 TO 31 3/4 WELLFLEET COMMUNICATIONS WHICH ADDED 2 3/8 TO 52 5/8 AND NOVELL WHICH JUMPED 1 1/8 TO 22 3/8 THE GROUP ALSO WAS STRONG ON THE BIG BOARD MOTOROLA CLIMBED 2 3/8 TO 105 5/8 OPTIMISM ABOUT IMPROVING EARNINGS HELPED TRIGGER THE SNAPBACK IN TECHNOLOGY AND ELSEWHERE ON NASDAQ SAID MARY FARRELL MARKET STRATEGIST AT PAINEWEBBER THERE IS A SHIFT FROM THE CYCLICALS WHO HAVE HAD THEIR EARNINGSBASED RALLY TO SMALLER CAPS WHOSE VALUATIONS HAVEN'T YET REFLECTED THE STRONG EARNINGS GROWTH MANY OF THEM REPORTED THIS QUARTER SHE SAID INVESTORS IGNORED A POSITIVE READING ON THE ECONOMY AND INSTEAD SPENT MUCH OF THE DAY FRETTING OVER THE BOND MARKET'S REACTION TO THE NEWS THE COMMERCE DEPARTMENT SAID DURABLE GOODS ORDERS JUMPED 07 LAST MONTH ANALYSTS HAD FORECAST A GAIN OF JUST 04 THE 30YEAR TREASURY WHICH FELL THREE OF THE PAST FOUR SESSIONS LOST 1/4 POINT PUSHING ITS YIELD UP TO 6 MEANWHILE EVEN WITH THE LATE RECOVERY IN MANY STOCKS SCOTT MARSH HEAD OF BLOCK TRADING AT DEAN WITTER REYNOLDS SAID THE RECENT MARKET ACTION HAS BEEN TROUBLING HIGH TRADING VOLUME BUT MODEST OVERALL PRICE MOVEMENT AS HAS BEEN SEEN LATELY OFTEN OCCURS NEAR A MARKET PEAK HE SAID MINNESOTA MINING SLUMPED AFTER THE ST PAUL MINN COMPANY SAID ITS THIRDQUARTER EARNINGS SLIPPED TO 147 A SHARE FROM 148 A SHARE A YEAR EARLIER ANALYSTS HAD PREDICTED A PROFIT OF ABOUT 150 A SHARE ACCORDING TO THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM GENERAL MOTORS JUMPED 1 1/2 TO 46 7/8 ITS HUGHES ELECTRONICS UNIT REPORTED EARNINGS FROM OPERATIONS OF 56 CENTS A SHARE FOR THE THIRD QUARTER UP FROM 38 CENTS A SHARE WHILE ITS ELECTRONIC DATA SYSTEMS UNIT HAD A PROFIT OF 40 CENTS A SHARE UP FROM 35 CENTS A SHARE A YEAR EARLIER GM'S CLASS H STOCK WHICH REPRESENTS THE OPERATIONS OF HUGHES ADDED 5/8 TO 39 ITS CLASS E STOCK REPRESENTING EDS RETRACED SOME EARLY STRENGTH TO FINISH WITH A LOSS OF 1/8 TO 30 GM'S OVERALL THIRDQUARTER EARNINGS REPORT IS EXPECTED TO BE RELEASED TODAY FORD MOTOR ROSE 5/8 TO 60 3/8 IT REPORTED STRONGERTHANEXPECTED THIRDQUARTER EARNINGS OF 79 CENTS A SHARE WHICH INCLUDED A 28 CENTASHARE GAIN A YEAR EARLIER IT HAD A LOSS OF 66 CENTS A SHARE FORD WAS AMONG THE MOST ACTIVE BIG BOARD ISSUES WITH VOLUME OF 51 MILLION SHARES CHRYSLER MEANWHILE GAINED 1/2 TO 55 1/4 IT RELEASED SHARPLY IMPROVED RESULTS EARLIER THIS MONTH UST CORP TUMBLED 3 3/8 TO 24 3/4 TRADERS CITED RUMORS THAT PRESIDENT CLINTON WILL PURSUE A LARGERTHANEXPECTED INCREASE IN THE TAX ON CHEWING TOBACCO FROM WHICH THE GREENWICH CONN COMPANY DERIVES MUCH OF ITS PROFIT A SPOKESMAN FOR UST SAID THE PRESIDENT PROPOSED INCREASING THE TAX ON MOIST SNUFF TO 1286 A POUND FROM 36 CENTS A POUND AN ADMINISTRATION SPOKESMAN COULDN'T BE REACHED FOR COMMENT EASTMAN KODAK ROSE 1 1/8 TO 59 EVEN THOUGH THE COMPANY REPORTED A THIRDQUARTER LOSS AND LOWERED ITS EXPECTATIONS FOR 1994 AFTER THE MARKET CLOSED THE COMPANY SAID IT NAMED GEORGE MC FISHER AS CHAIRMAN SUCCEEDING KAY R WHITMORE MR FISHER IS NOW CHAIRMAN OF MOTOROLA IN AFTERHOURS TRADING ON REUTERS HOLDINGS' ELECTRONIC INSTINET SYSTEM KODAK JUMPED TO AROUND 62 MOTOROLA WAS OFFERED AT AROUND 104 COMPARED WITH A LAST SALE OF 105 5/8 PARAMOUNT COMMUNICATIONS ADDED 2 TO 81 AS THE POSSIBILITY EMERGED THAT BELLSOUTH MIGHT ENTER THE BIDDING FOR THE NEW YORK MEDIA COMPANY THE WALL STREET JOURNAL REPORTED THAT AS RECENTLY AS TUESDAY THE BABY BELL WAS EXPLORING FINANCING ARRANGEMENTS BELLSOUTH ADDED 3/8 TO 62 3/8 SHARES OF VIACOM WHICH HAS ALREADY AGREED TO PURCHASE PARAMOUNT AND LAUNCHED A TENDER OFFER EARLIER THIS WEEK WERE UNCHANGED AT 58 1/4 ON THE AMERICAN STOCK EXCHANGE ON NASDAQ QVC NETWORK JUMPED 1 1/2 TO 57 IT BEGAN A TENDER OFFER YESTERDAY BIOGEN JUMPED 3 1/2 TO 40 ON NASDAQ AFTER THE CAMBRIDGE MASS BIOTECHNOLOGY COMPANY POSTED STRONGERTHANEXPECTED EARNINGS IT HAD A PROFIT OF 33 CENTS A SHARE IN THE THIRD QUARTER UNCHANGED FROM A YEAR EARLIER BUT ABOVE THE 26 CENTASHARE MEAN ESTIMATE OF ANALYSTS SURVEYED BY IBES OTHER BIOTECH SHARES RALLIED GENZYME ROSE 1 TO 34 1/2 CHIRON SURGED 4 TO 79 3/4 AND AMGEN GAINED 1 1/2 TO 45 1/4 ALL THREE IN OVERTHECOUNTER TRADING GENENTECH THOUGH WAS UNCHANGED AT 46 3/8 ON THE BIG BOARD ON THE NASDAQ QUALCOMM INCREASED 4 3/4 TO 77 3/4 LEHMAN BROTHERS RAISED A RATING ON THE SAN DIEGO WIRELESS COMMUNICATIONS COMPANY TO BUY FROM OUTPERFORM 9310280122 931028 COMMODITIES COFFEE FUTURES RISE AS BRAZIL MOVES TO ADHERE TO EXPORT LIMITS OF LATIN AMERICAN PRODUCERS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COFFEE FUTURES PRICES ROSE AS THE GOVERNMENT OF BRAZIL TOOK STEPS TO ADHERE TO A PLAN BY LATIN AMERICAN COFFEE PRODUCERS TO LIMIT THEIR EXPORTS OF COFFEE AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE THE ACTIVELY TRADED DECEMBER COFFEE FUTURES CONTRACT WAS UP 165 CENTS TO 7635 CENTS A POUND THE BIGGEST COFFEE PRODUCERS OF LATIN AMERICA AND AFRICA HAVE FORMED A CARTEL AND AGREED TO WITHHOLD 20 OF THEIR COFFEE EXPORTS AT TIMES WHEN COFFEE PRICES ARE BELOW 80 CENTS A POUND BRAZIL'S PARTICIPATION IN THE SCHEME IS SEEN AS VITAL TO ITS SUCCESS BECAUSE BRAZIL IS THE WORLD'S LARGEST COFFEE PRODUCER IF BRAZIL DOESN'T RETAIN EXPORTS THERE'S NO POINT IN HAVING A RETENTION PLAN SAID JUDITH GANES COFFEE ANALYST FOR MERRILL LYNCH ALL EYES ARE ON BRAZIL BECAUSE THEY ARE A KINGPIN IN THIS MARKET YESTERDAY'S MARKETMOVING NEWS OUT OF BRAZIL CONSISTED OF REPORTS THAT THE COUNTRY'S NATIONAL MONETARY COUNCIL WAS LEANING TOWARD APPROVING A LOAN TO THE BANCO DO BRASIL SA TO PURCHASE AND THEREBY WITHHOLD FROM WORLD MARKETS 20 OF BRAZIL'S OCTOBER EXPORTS UNDER THE SCHEME AFTER THE MARKET CLOSED YESTERDAY AT ABOUT 3 PM EST THE BRAZILIAN GOVERNMENT ANNOUNCED THAT IT HAD APPROVED THE LOAN THIS LATE DEVELOPMENT WAS LIKELY TO EXERT CONTINUED UPWARD PRESSURE ON COFFEE FUTURES PRICES TODAY SAID BERNARD SAVAIKO COFFEE ANALYST FOR PAINEWEBBER INC ALSO SIGNIFICANT MS GANES SAID WAS THE BRAZILIAN GOVERNMENT'S REPORT THAT THE COUNTRY'S COFFEE EXPORTS HAD TOTALED ONLY 700000 BAGS OF COFFEE DURING THE MONTH OF OCTOBER MANY TRADERS HAD EXPECTED SHIPMENT OF AS MUCH AS TWO MILLION BAGS DURING THAT PERIOD AS A COLDWEATHER BEVERAGE COFFEE'S PEAK DEMAND SEASON BEGINS IN THE FALL AND BRAZIL'S SMALLERTHANEXPECTED SHIPMENTS WERE INTERPRETED BY TRADERS AS AN INDICATION OF POTENTIALLY TIGHT SUPPLIES DURING THE FALL PERIOD THERE STILL IS WIDESPREAD SKEPTICISM IN THE MARKET ANALYSTS SAID ABOUT THE WILLINGNESS OF COUNTRIES WITHIN THE NEW LATIN AMERICAN AND AFRICAN CARTEL TO ADHERE TO THE EXPORTLIMITING AGREEMENT STILL PRICES HAVE RISEN OVER THE PAST MONTH AS THESE COUNTRIES TOOK MEASURED STEPS TOWARD COMPLYING WITH THE PLAN THESE ONAGAIN OFFAGAIN RUMORS HAVE BEEN CAUSING THE MARKET TO SWING VIOLENTLY IN A CHOPPY NATURE IN THE PAST FEW DAYS MR SAVAIKO SAID BECAUSE OF STRONG DEMAND FOR COFFEE AT THIS TIME OF YEAR AND THE LACK SO FAR OF A TOTAL COLLAPSE OF THE EXPORTLIMITING AGREEMENT SOME ANALYSTS PREDICT THAT COFFEE PRICES MAY CONTINUE TO RALLY IN THE NEAR FUTURE IT IS POSSIBLE MR SAVAIKO SAID THAT COFFEE FUTURES PRICES COULD SOON TEST THEIR RECENT HIGHS OF 82 CENTS A POUND IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES PRICES WERE MOSTLY HIGHER AS SOME STABILIZATION RETURNED TO THE OIL MARKET AFTER THE SHARP SELLOFFS OF RECENT DAYS BUT THE PRICE TREND REMAINED UNCERTAIN AS TRADERS AWAITED WORD ON THIS MONTH'S RATE OF CRUDE OIL PRODUCTION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES PERCEPTIONS OF OVERSUPPLY CONTINUED TO KEEP SOME DOWNWARD PRESSURE ON PRICES STILL FOR THE SECOND STRAIGHT DAY CRUDE OIL FUTURES ROSE CRUDE FOR DECEMBER DELIVERY WAS UP 11 CENTS A BARREL TO 1765 THE CRUDE MARKET DREW SUPPORT FROM GASOLINE WHICH SET THE PACE IN FUTURES TRADING YESTERDAY AFTER REPORTS THAT A SHELL OIL CO REFINERY IN LOUISIANA WAS OPERATING AT REDUCED CAPACITY UNLEADED GASOLINE CONTRACTS WERE UP MORE THAN ONEHALF CENT A GALLON ON THE NEW YORK MERCANTILE EXCHANGE NATURAL GAS FUTURES ALSO WERE HIGHER WITH THE DECEMBER CONTRACT SETTLING AT 2364 A MILLION BRITISH THERMAL UNITS UP 59 CENTS LIVESTOCK AND MEATS LIVESTOCK FUTURES PRICES ROSE ON THE GENERAL STRENGTH IN COMMODITY MARKETS AND IN RESPONSE TO CONSUMER DEMAND THAT THE RELATIVELY LOW PRICE OF BEEF HAS CREATED AT THE CHICAGO MERCANTILE EXCHANGE CATTLE FOR DECEMBER DELIVERY WERE UP 027 CENT TO 7410 CENTS A POUND THAT PRICE IS BELOW THE SEASONAL AVERAGE FOR FALL WHICH IS TYPICALLY A TIME OF STRONG DEMAND FOR RED MEAT IN PART BECAUSE OF CATTLE'S LOW PRICE RETAILERS STOCKED UP ON BEEF OVER THE PAST COUPLE OF WEEKS SAID DAN VAUGHT LIVESTOCK ANALYST FOR AG EDWARDS & SONS ST LOUIS APPARENTLY DRAWING STRENGTH FROM THE CHICAGO MERC'S CATTLE FUTURES PIT PORKBELLY AND HOG FUTURES PRICES ALSO ROSE YESTERDAY PORK BELLIES FOR FEBRUARY DELIVERY WERE UP 035 CENT TO 5765 CENTS A POUND WHILE THE DECEMBER HOG FUTURES CONTRACT ROSE 012 CENT TO 4810 CENTS A POUND 9310280121 931028 CORPORATIONS MAKE AN APPEARANCE AT FASHION SHOWS BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MOVE OVER IVANA THE LOCAL CADILLAC DEALER HAS HIS EYE ON YOUR FRONTROW SEAT AT NEXT WEEK'S FASHION SHOWS AS SEVENTH AVENUE GATHERS FOR THE SEMIANNUAL ROUND OF DESIGNERS' SHOWS CORPORATE SPONSORS INCLUDING EVIAN CLAIROL GODIVA LIQUEUR AND CADILLAC FOR THE FIRST TIME ARE PAYING AT LEAST 100000 EACH TO PLACE THEIR PRODUCTS NEAR THOSE OF CALVIN KLEIN OSCAR DE LA RENTA AND RALPH LAUREN THE 11 COMPANIES SPONSORING THIS FALL'S EVENTS WERE ENTICED BY THE CHANCE TO REACH AN AUDIENCE OF FASHION'S TOP DECISION MAKERS AND TRENDSETTERS BUT UNDER RULES SET DOWN BY SHOW ORGANIZERS THEIR PITCHES MUST BE AS UNDERSTATED AS A LITTLE BLACK DRESS THERE WILL BE NO CORPORATE BANNERS OR OTHER OBVIOUS SIGNAGE FASHION DESIGNERS SEE THEMSELVES AS ARTISTS SAYS CHRISTY FERER PRESIDENT OF VIDICOM INC A NEW YORK CONCERN THAT WILL PRODUCE VIDEO NEWS RELEASES OF THE FASHION SHOWS IF THEY ENDORSED THE PRODUCTS IT MIGHT MAKE PEOPLE THINK THAT THEY'VE BEEN COMPROMISED ARTISTICALLY WHICH ISN'T THE CASE DESPITE THE CURBS ON HUCKSTERISM ADVERTISERS EAGERLY SIGNED UP AMONG THEM ARE THE THREE LEADING FASHION MAGAZINES VOGUE ELLE AND HARPER'S BAZAAR WHICH RECEIVE HUNDREDS OF THOUSAND OF DOLLARS IN ADS FROM THE DESIGNERS STAGING THE SHOWS THE CORPORATE SPONSORSHIPS COINCIDE WITH THE DECISION BY 40 OF NEW YORK'S TOP DESIGNERS TO CUT COSTS BY STAGING ALL THEIR SHOWS AT ONE SITE UNDER TENTS ON THE GROUNDS OF THE NEW YORK PUBLIC LIBRARY IN THE TRADITION OF THE PARIS AND MILAN SHOWS THE NEW YORK SHOWS SEEM LIKE A NATURAL TIEIN FOR EVIAN THE TRENDY FRENCH BOTTLED WATER INDEED DESIGNER DONNA KARAN ONCE SHOWED A GOLD SUEDE EVIAN BOTTLE HOLDER AS A FASHION ACCESSORY BOTTLES OF EVIAN WILL BE PLACED ON EVERY SEAT AT EVERY FASHION SHOW AS CAMERAS ROLL THE AUDIENCE PRESUMABLY WILL BE SWILLING FROM THE BOTTLE THE FASHION COMMUNITY LIKES TO SET TRENDS AND DISCOVER THINGS ON THEIR OWN SAYS PAUL R BLOCK VICE PRESIDENT OF MARKETING FOR THE EVIAN NATURAL SPRING WATER DIVISION OF PARISBASED BSN GROUP IF YOU TRY TO MARKET TOO HEAVILY TO THEM IT WILL BACKFIRE EVIAN PAID AN EXTRA 50000 TO PLACE ITS NAME AT THE TOP OF THE SPONSOR LIST USED IN NEWSPAPER ADVERTISING THE OTHER BEVERAGE SPONSOR SEAGRAM CO WHICH IS INTRODUCING ITS GODIVA CHOCOLATE LIQUEUR THIS MONTH WILL TAKE CENTER STAGE ONLY AT COCKTAIL HOUR WHEN BARS WILL BE SET UP OUTSIDE TENTS STILL SEAGRAM UNDERSTANDS THAT THIS IS AN IMPORTANT AUDIENCE OF STYLEMAKERS SAYS KAREN TIMPONE A SEAGRAM SPOKESWOMAN FOR CADILLAC TRYING TO REGAIN SOME OF THE LUSTER IT HAS LOST TO SUCH LUXURY RIVALS AS BMW AND LEXUS THE FASHION SHOWS ARE A WAY TO GET VIPS INTO OUR CARS SO THAT THEY CAN FALL IN LOVE WITH THEM SAYS BENJAMIN PINGREE A CADILLAC SPOKESMAN BUT THE DESIGNATION OFFICIAL FASHION SHOW CAR MEANS STAYING OUT OF SIGHT A FLEET OF SHINY 1994 SEVILLES AND CONCOURS WILL BE ON HAND TO SHUTTLE MODELS DESIGNERS AND OTHER GUESTS AROUND THE CITY BUT BETWEEN ERRANDS THE CARS WILL BE PARKED ON 42ND STREET IN FRONT OF THE LIBRARY SOME DISTANCE FROM THE FASHION SHOWS SEVENTH AVENUE'S COURTSHIP OF SPONSORS COMES AT A TIME WHEN APPAREL SALES ARE STAGNANT AND SOME FASHION BUSINESSES ARE HANGING ON BY THREADS THE RUNWAY SHOWS ONCE CLUBBY RITUALS FOR THE TRADE EVOLVED DURING THE BOOMING 1980S INTO PHOTO OPPORTUNITIES WITH SUPERMODELS KINKY CLOTHES AND CELEBRITYSTUDDED AUDIENCES NONE OF THIS COMES CHEAP A TYPICAL 25MINUTE FASHION SHOW NOW COSTS MORE THAN 100000 AND IN THE AUSTERE 1990S MANY STRUGGLING OR EMERGING FASHION HOUSES HAVE BEEN PRICED OFF THE RUNWAYS THE BIGGEST SINGLE COST IS MODELING FEES A SUPERSTAR LINDA EVANGELISTA OR NAOMI CAMPBELL MAY FETCH UP TO 8000 FOR A SINGLE SHOW CORPORATE UNDERWRITING WILL ENABLE DESIGNERS TO SPEND AS MUCH AS 50 LESS WHEN DESIGNERS DECIDED TO CONSOLIDATE THEIR SHOWS IN ONE PLACE SPACE AS WELL AS COST WAS A CONSIDERATION IN PAST YEARS DONNA KARAN CALVIN KLEIN AND RALPH LAUREN OFTEN SNUBBED THE B LIST OF SMALLTOWN BUYERS AND FASHION EDITORS WHO COULDN'T BE SQUEEZED INTO THEIR CRAMPED SHOWROOMS AND IN 1991 AFTER A CEILING COLLAPSED ON THE AUDIENCE DURING A MICHAEL KORS SHOW IN A DOWNTOWN LOFT WE REALLY STARTED TO ORGANIZE TO FIND A WAY TO CENTRALIZE THE SHOWS SAYS FERN MALLIS EXECUTIVE DIRECTOR OF THE COUNCIL OF FASHION DESIGNERS THE INDUSTRY TRADE GROUP UNDER WHICH SEVENTH ON SIXTH THE OFFICIAL ORGANIZER OF THE UNIFIED SHOWS WAS FORMED THE UNIFIED SHOWINGS ALSO PROMISED MORE PUBLICITY PUNCH AMERICAN FASHION IS BECOMING MORE POPULAR IN EUROPE AND THIS IS THE WAY TO SHOW THE WORLD WHAT WE ARE DOING IN NEW YORK SAYS CALVIN KLEIN WHO IS STAGING TWO SHOWS NEXT WEEK THAT PROSPECT HELPED ENLIST SPONSORS THE TWO COSMETICCOMPANY SPONSORS CLAIROL INC AND ESTEE LAUDER INC'S PRESCRIPTIVES LINE WILL STATION TEAMS OF HAIRSTYLISTS AND MAKEUP ARTISTS BACKSTAGE WHERE THEY WILL PROVIDE DESIGNERS AND THEIR CREWS WITH PRODUCTS THE COSMETICS COMPANIES WILL ALSO GIVE MEMBERS OF THE PRESS FREE MAKEOVERS BETWEEN SHOWS BY TARGETING THE TOP MAKEUP ARTISTS WHO ARE SETTING TRENDS ULTIMATELY WE REACH THE CONSUMER SAYS JANE HERTZMARK VICE PRESIDENT OF MARKETING FOR PRESCRIPTIVES FOR SPONSORS THE SHOWS ARE A WAY TO BESTOW FAVORS OR REWARD VALUED CUSTOMERS WITH PRIZED TICKETS A CADILLAC DEALER FROM WESTBURY NY PLANS TO INVITE LOCAL CADILLAC OWNERS AND PROSPECTIVE BUYERS TO THE COLLECTIONS FOR EXAMPLE BUT THE INVASION OF OUTSIDERS POSES PROTOCOL PROBLEMS IN SOME CASES THEY COULD SHUFFLE THE SEATING OF FASHIONSHOW REGULARS WHO FOR YEARS HAVE COMMANDED FRONTROW SPOTS WITH SPONSORS TAKING UP AS MANY AS 50 SEATS AT EACH SHOW SOME FASHION PEOPLE ARE GRUMBLING MOST HARASSED ARE THOSE WITH THE TICKLISH JOB OF DRAWING UP SHOW SEATING CHARTS NOTHING IS MORE POLITICAL THAN SEATING A FASHION SHOW SAYS KEVIN KRIER A FASHION PUBLICIST WHO IN PREPARING SEATING FOR THE TODD OLDHAM SHOW MUST MAKE ROOM FOR SPONSORS' GUESTS RALPH LAUREN IS ALLOTTING ONLY 10 SEATS FOR SPONSORS AT HIS SHOW 40 OTHER SPONSORS' GUESTS WILL BE RELEGATED TO HIS DRESS REHEARSAL BUT THE ECONOMICS OF CORPORATE SPONSORSHIP OUTWEIGH THE PETTY POLITICS OF SEATING ARGUES THE TRADE GROUP'S MS MALLIS WHEN IT WAS MADE CLEAR TO THE DESIGNERS THAT TENT RENTAL WOULD COST THEM EACH 25000 OR LESS WITH SPONSORS BUT 75000 WITHOUT SHE SAYS HAVING THE SPONSORS BECAME AN EASY TRADEOFF THAT MOST DESIGNERS DIDN'T MIND 9310280120 931028 DIVIDEND NEWS CHESTER VALLEY BANCORP CHESTER VALLEY BANCORP DOWNINGTOWN PA DECLARED A 5FOR4 STOCK SPLIT PAYABLE DEC 17 TO STOCK OF RECORD NOV 15 AND EFFECTIVELY RAISED THE QUARTERLY CASH DIVIDEND 25 AFTER THE SPLIT THE CURRENT QUARTERLY DIVIDEND OF EIGHT CENTS A SHARE TO BE PAID ON SHARES OUTSTANDING AFTER THE SPLIT IS EQUIVALENT TO 10 CENTS A SHARE ON CURRENT COMMON CHESTER VALLEY IS PARENT OF FIRST FINANCIAL SAVINGS BANK 9310280119 931028 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 BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL THIS BLACK CAT ISN'T BRINGING BAD LUCK JUST HOURS AFTER THE NATIONAL FOOTBALL LEAGUE PICKED CHARLOTTE NC AS THE SITE FOR ITS NEWEST FRANCHISE LATE TUESDAY NIGHT COMPANIES WERE CRANKING OUT MERCHANDISE FEATURING THE CAROLINA PANTHERS' ROARING BLACK LOGO WE STARTED ABOUT A HALF HOUR AFTER THE ANNOUNCEMENT AND WE'VE BEEN RUNNING ALL NIGHT SAID A SPOKESMAN FOR LOGO 7 INC A UNIT OF TULTEX CORP LOGO 7 PREDICTED IT WOULD PRINT 120000 PANTHER TSHIRTS AND SWEATSHIRTS AT ITS INDIANAPOLIS PLANT IN THE FIRST 26 HOURS THE LOGO FEATURES A FIERCELOOKING BLACK PANTHER FLASHING SILVER FANGS AND EYES ON A FIELD OF ELECTRIC BLUE BELK THE BIG CHARLOTTEBASED DEPARTMENT STORE CHAIN HAD ITS BUYERS IN TSHIRT PRINTING PLANTS TUESDAY NIGHT TO SPEED MERCHANDISE TO STORES THE FIRST GUY WHO GETS IT IN THE STORE IS THE GUY WHO SELLS THE MOST SAYS A SPOKESMAN ALL THIS IS FOR A TEAM THAT TECHNICALLY DOESN'T EXIST YET AND WON'T PLAY ITS FIRST DOWN UNTIL 1995 WHEN IT COMES TO SELLING SPORTS MERCHANDISE THE TEAM MATTERS LITTLE THESE DAYS BUT SNAPPY LOGOS AND COOL COLORS ARE CRUCIAL AND IT'S A BIG BUSINESS NFL PROPERTIES WHICH LICENSES PRODUCTS RACKED UP 1 BILLION IN SALES LAST YEAR MAJOR LEAGUE BASEBALL PROPERTIES PULLED IN MORE THAN 2 BILLION CONSIDER THE NATIONAL HOCKEY LEAGUE'S ANAHEIM MIGHTY DUCKS OWNED BY WALT DISNEY CO WHILE HOCKEY PURISTS CONSIDERED THE SOUTHERN CALIFORNIA TEAM'S NAME GOOFY THE FIRSTYEAR CLUB HAS ROCKETED TO THE TOP OF THE NHL MERCHANDISE SALES CHART ITS LOGO FEATURES A MENACING GOALIE MASK FIT FOR A DUCK'S FACE AND THE COLORADO ROCKIES BECAME THE BIGGEST SELLER IN THEIR FIRST SEASON FOR MAJOR LEAGUE BASEBALL PROPERTIES DURING THE NFL'S CONSIDERATION OF THE FINAL FIVE BIDS FOR TWO EXPANSION TEAMS PART OF CHARLOTTE'S APPEAL WAS ITS MERCHANDISING POTENTIAL SINCE THERE IS NO OTHER PRO FOOTBALL TEAM BETWEEN ATLANTA AND WASHINGTON JERRY RICHARDSON HEAD OF THE FRANCHISE WINNER RICHARDSON SPORTS WANTED A SLEEK POWERFUL AND FIERCE MASCOT SAYS MAX MUHLEMAN THE CHARLOTTE GROUP'S MARKETING CZAR AFTER THE ANNOUNCEMENT LAST NIGHT IN ROSEMONT ILL NFL PROPERTIES OFFICIALS PASSED OUT PANTHERS CAPS TWO YEARS BEFORE THE FIRST KICKOFF 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 9310280118 931028 CREDIT RATINGS WESTINGHOUSE ELECTRIC DEBT IS UNDER REVIEW FOR RATING DOWNGRADE PITTSBURGH MOODY'S INVESTORS SERVICE INC SAYING THE PERFORMANCE AT WESTINGHOUSE ELECTRIC CORP'S CORE BUSINESSES IS DECLINING PLACED 4 BILLION OF ITS DEBT ON REVIEW FOR POSSIBLE DOWNGRADE THE RATINGS AGENCY SAID IT HAD INCREASING CONCERNS ABOUT WESTINGHOUSE'S PERFORMANCE ESPECIALLY ITS ENVIRONMENTAL AND ELECTRONIC SYSTEMS OPERATIONS WHICH ARE P LEVEL MOODY'S EXPECTED THE REVIEW WILL FOCUS ON MANAGEMENT'S STRATEGIES TO IMPROVE OPERATING PERFORMANCE OF THE CORE BUSINESSES AS WELL AS FUTURE PLANS TO REDUCE LEVERAGE MOODY'S SAID WESTINGHOUSE SAID IT WAS DISAPPOINTED BY MOODY'S ACTION A SPOKESMAN ADDED THAT THE COMPANY'S NEW CHIEF EXECUTIVE MICHAEL H JORDAN IS EXAMINING THE ISSUES MOODY'S HIGHLIGHTED HE SAID WESTINGHOUSE HAS CUT ITS DEBT TO 59 BILLION AT SEPT 30 FROM 84 BILLION AT DEC 31 1992 RATING UNDER REVIEW INCLUDE WESTINGHOUSE'S SENIOR NOTES AND DEBENTURES AT BAA3 MEDIUMTERM NOTES AT BAA3 INDUSTRIAL REVENUE BONDS AT BAA3 SHELF REGISTRATION AT BAA3 SHELF REGISTRATION AT BA1 PREFERRED STOCK AT BA1 AND COMMERCIAL PAPER AT PRIME 3 IT ALSO INCLUDES WESTINGHOUSE CREDIT CORP'S DEBENTURES EUROBONDS FLOATINGRATE NOTES AND MEDIUMTERM AND SENIOR NOTES AT BAA3 9310280117 931028 INTERNATIONAL BRAZIL IS TESTED BY FRESH GRAFT SCANDAL FALLOUT COULD FURTHER DELAY ECONOMIC REFORMS BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL RIO DE JANEIRO ONLY ONE YEAR AFTER OUSTING ITS PRESIDENT ON CORRUPTION CHARGES BRAZIL'S YOUNG DEMOCRACY IS ONCE AGAIN BEING PUT TO THE TEST BY A NEW GRAFT SCANDAL THAT THREATENS TO FURTHER DELAY LONGOVERDUE ECONOMIC REFORMS HAVING CLEANED UP ITS EXECUTIVE BRANCH LAST YEAR BY REMOVING PRESIDENT FERNANDO COLLOR DE MELLO ON CHARGES THAT HE BENEFITED FROM A KICKBACK SCHEME MOUNTED BY A CLOSE ALLY BRAZIL'S LEGISLATIVE BRANCH IS NOW ENGULFED IN A KICKBACK SCANDAL OF ITS OWN AND IT APPEARS TO INVOLVE MANY OF THOSE WHO VOTED TO REMOVE MR COLLOR IN THE NAME OF MORALITY MEANWHILE AS IF TO SHOW THAT HE'S NOW IN GOOD COMPANY ONE OF THE MAIN FIGURES OF THE COLLOR SCANDAL REEMERGED IN LONDON AFTER 113 DAYS ON THE RUN PAULO CESAR FARIAS THE TREASURER OF MR COLLOR'S VICTORIOUS PRESIDENTIAL CAMPAIGN AND THE PRESUMED ORGANIZER OF THE ALLEGED CORRUPTION RING MOUNTED DURING HIS PRESIDENCY CLAIMED IN A TELEVISION INTERVIEW THAT HE FLED BECAUSE HE FELT PERSECUTED BY A BRAZILIAN JUDGE'S IMPRISONMENT ORDER AND SAID HE CHOSE ENGLAND BECAUSE IT HAS NO EXTRADITION TREATY WITH BRAZIL THIS CONFLUENCE OF PAST AND PRESENT SCANDALS IS POSING A CHALLENGE TO BRAZIL'S DEMOCRACY ALREADY UNDERMINED BY RUNAWAY INFLATION OF OVER 2000 A YEAR AND STEADILY WORSENING URBAN VIOLENCE THE CURRENT SCANDAL SHOWS HOW DEEPLY THE COUNTRY'S POLL SYSTEM IS RIDDEN WITH CORRUPTION THE REEMERGENCE OF LAST YEAR'S SCANDAL SHOWS THAT FOR ALL THE EFFORTS AT MORALIZATION IMPUNITY FOR THE POWERFUL STILL REIGNS IN BRAZIL THE SIDEBYSIDE SCANDALS ARE RESULTING IN POLITICAL PARALYSIS AND A SENSE OF OUTRAGE THAT HAVE TRANSLATED INTO PLUNGING STOCK MARKETS LAST WEEK SAO PAULO'S STOCK MARKET FELL BY 184 AND IT FELL A FURTHER 64 MONDAY BEFORE REBOUNDING 526 ON TUESDAY AND GAINING ANOTHER 94 YESTERDAY THE NATIONAL CRISIS HAS EXCEEDED ALL LIMITS FORMER PRESIDENT JOSE SARNEY SAID OVER THE WEEKEND IT REQUIRES HEROIC DECISIONS PRESIDENT ITAMAR FRANCO LAST WEEK SAID HE WAS PREPARED TO STEP DOWN IF CONGRESS DECIDED THAT THE BEST WAY OUT OF THE CRISIS WOULD BE TO CALL EARLY PRESIDENTIAL CONGRESSIONAL AND GUBERNATORIAL ELECTIONS CURRENTLY SCHEDULED FOR A YEAR FROM NOW BUT THE IDEA IS LARGELY VIEWED HERE AS A COPOUT AND MANY SAY THE ONLY WAY FOR BRAZIL'S POLITICAL CLASS TO REGAIN CREDIBILITY IS TO SPONSOR A DOMESTIC VERSION OF ITALY'S MANI PULITE OR CLEAN HANDS CRACKDOWN ON CORRUPTION EITHER WE FOLLOW ITALY'S EXAMPLE OR IT WILL BE VERY DIFFICULT TO AVOID THE CIRCUMSTANCE THAT PUBLIC OPINION BURIES REPRESENTATIVE DEMOCRACY SAYS SEN JARBAS PASSARINHO THE PRESIDENT OF THE CONGRESSIONAL INVESTIGATIVE COMMITTEE THAT WAS SET UP TO LOOK INTO THE LATEST SCANDAL IN ITS FIRST WEEK THAT COMMITTEE HAS ALREADY COME UP WITH SOME STARTLING TESTIMONY AND INVESTIGATORS YESTERDAY SAID THEY WOULD EXAMINE THE BANK ACCOUNTS OF DOZENS OF BRAZILIAN LEGISLATORS ACCUSED OF DIVERTING MILLIONS OF DOLLARS INTO THEIR PERSONAL ACCOUNTS INVESTIGATORS ALSO PLAN TO LOOK INTO TAX HISTORIES AND PHONE BILLS SEARCHING FOR EVIDENCE OF ILLEGALLY OBTAINED FUNDS THE SCANDAL WAS TOUCHED OFF BY A FORMER DIRECTOR OF THE FEDERAL BUDGET OFFICE JOSE CARLOS ALVES DOS SANTOS WHO WAS ARRESTED AS A SUSPECT IN THE DISAPPEARANCE OF HIS WIFE ASKED TO EXPLAIN THE ORIGIN OF MORE THAN 1 MILLION IN CASH IN HIS POSSESSION MR DOS SANTOS SAID THE MONEY CAME FROM KICKBACKS PAID BY CONSTRUCTION COMPANIES TO INCLUDE PROJECTS FAVORABLE TO THEM IN THE BUDGET TESTIFYING BEFORE THE COMMITTEE HE IMPLICATED 26 CONGRESSMEN THREE GOVERNORS THREE FORMER MINISTERS AND TWO CURRENT ONES AS BEING PART OF THE RING WHICH ALSO INCLUDED EIGHT CONSTRUCTION COMPANIES THE POLITICIAN HE IDENTIFIED AS THE RINGLEADER JOAO ALVES DENIED EVERYTHING BUT ASKED TO EXPLAIN HOW THE FORMER HEAD OF CONGRESS'S BUDGET COMMISSION CAME TO OWN A SLEW OF APARTMENTS AND HOUSES AND LEASE A LEAR JET MR ALVES A DIMINUTIVE 74YEAROLD WITH DYED BLACK HAIR SAID GOD HELPED ME HE THEN SAID MOST OF HIS FORTUNE CAME FROM LOTTERY WINS HE FIRST CLAIMED TO HAVE WON 13 TIMES BUT IN SUBSEQUENT INTERVIEWS SAID HE WON OVER 200 TIMES SKEPTICAL THAT ANYONE COULD HAVE SUCH LUCK EVEN WITH DIVINE INTERVENTION GOVERNMENT OFFICIALS THINK MR ALVES WAS LAUNDERING ILLICIT MONEY THROUGH A RING SET UP TO BUY WINNING LOTTERY TICKETS AT A PREMIUM FROM THEIR ORIGINAL OWNERS AND THEN CASH THEM IN CONGRESS'S CREDIBILITY IS BEING FURTHER ERODED BY A PARALLEL INVESTIGATION INVOLVING A SMALL PARTY THAT'S ACCUSED OF OFFERING PAYMENTS OF AS MUCH AS 50000 TO RECRUIT DEPUTIES FROM OTHER PARTIES THIS WOULD ALLOW IT TO REACH THE QUORUM OF 15 DEPUTIES NEEDED TO PRESENT A PRESIDENTIAL CANDIDATE AND GAIN FREE TELEVISION AND RADIO TIME ONE OF THE DEPUTIES IMPLICATED ITSUO TAKAYAMA CAUSED AN UPROAR WHEN HE DEFENDED HIMSELF BY SAYING IF A SOCCER PLAYER CAN RECEIVE A TRANSFER FEE WHY CAN'T A DEPUTY RECEIVE MONEY TO SWITCH PARTIES RIVETED BY THESE SCANDALS CONGRESS HAS LITTLE TIME FOR ANYTHING ELSE AMONG THE VICTIMS OF THIS PARALYSIS ARE A LONGPLANNED REVISION OF BRAZIL'S CONSTITUTION WHOSE NATIONALISTIC AND SOCIALISTIC PROVISIONS ARE FELT BY MANY TO CONTRIBUTE TO BRAZIL'S INFLATION AND SLOWNESS IN CARRYING OUT REFORMS CONGRESSMEN SAY THE REFORM WILL GO ON BUT SO FAR THERE HAS BEEN NO ACTION ANOTHER VICTIM IS A STOPGAP TAX INCREASE THE GOVERNMENT WAS HOPING TO IMPLEMENT TO STANCH A PROJECTED 1994 BUDGET DEFICIT OF AS MUCH AS 25 BILLION FINANCE MINISTER FERNANDO HENRIQUE CARDOSO SAID TUESDAY THAT THE TAX PACKAGE WILL BE LESS AMBITIOUS THAN ENVISAGED AND ANALYSTS SAY CONGRESSMEN WILL HAVE A HARD TIME APPROVING HIGHER TAXES AT THE SAME TIME AS THEY'RE BEING INVESTIGATED FOR MISMANAGING FUNDS IT'S LUDICROUS TO TRY TO INCREASE TAXES WHEN PUBLIC MONEY IS BEING SQUANDERED LIKE THIS SAYS POLITICAL SCIENTIST AMAURY DE SOUZA 9310280116 931028 INTERNATIONAL CANADA AWAITS LIBERALS' MOVE ON CENTRAL BANK BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA'S NEW LIBERAL PARTY GOVERNMENT IN PERHAPS ITS FIRST MAJOR DECISION WILL ANNOUNCE SOON WHETHER IT WILL REAPPOINT THE BANK OF CANADA'S INFLATIONFIGHTING GOVERNOR JOHN CROW THE DECISION WOULD SIGNAL TO FINANCIAL MARKETS WHETHER THE NEW GOVERNMENT ELECTED MONDAY WILL SUPPORT THE CENTRAL BANK'S GOAL OF ZERO INFLATION CANADA ALREADY HAS LOW INFLATION FOR JANUARY THROUGH SEPTEMBER THE CONSUMER PRICE INDEX SHOWED AN AVERAGE RISE OF 18 FROM A YEAR EARLIER MR CROW WHOSE SEVENYEAR TERM EXPIRES AT THE END OF JANUARY IS HIGHLY REGARDED BY BANKERS IN CANADA AND ABROAD BECAUSE OF HIS INFLATION STANCE BUT SOME LIBERALS ALLEGE HE HAS PURSUED THAT GOAL AT THE EXPENSE OF ECONOMIC GROWTH AND EMPLOYMENT FOR HIS PART THE 56YEAROLD MR CROW HASN'T INDICATED PUBLICLY WHETHER HE WANTS ANOTHER TERM JEAN CHRETIEN PRIME MINISTERDESIGNATE REFUSED TO SAY WHETHER MR CROW WOULD BE PICKED HE SAID AN ANNOUNCEMENT WOULDN'T BE MADE UNTIL AFTER THE FINANCE MINISTER WAS CHOSEN FINANCIAL ANALYSTS SAID AN EARLY ANNOUNCEMENT OF MRCROW'S REAPPOINTMENT WOULD HELP STABILIZE JITTERY CANADIAN FINANCIAL MARKETS THE CANADIAN DOLLAR WHICH HAS FLUCTUATED NERVOUSLY IN RECENT DAYS CLOSED IN TORONTO YESTERDAY AT 7587 US CENTS COMPARED WITH 7593 CENTS THE PREVIOUS DAY JOHN BULLOCH PRESIDENT OF THE CANADIAN FEDERATION OF INDEPENDENT BUSINESS AND SOMEONE WHO CONSULTS REGULARLY WITH SENIOR LIBERALS SAID HE IS 99 SURE MR CROW WILL BE REAPPOINTED WITH A NET DEBT OF ALMOST C500 BILLION US37935 BILLION THE GOVERNMENT DOESN'T WANT TO DO ANYTHING TO DESTABILIZE THE FINANCIAL MARKETS MR BULLOCH SAID BUT CARL WEINBERG CHIEF ECONOMIST AT THE NEW YORK ECONOMIC ADVISORY FIRM HIGH FREQUENCY ECONOMICS PREDICTED THE LIBERAL GOVERNMENT WON'T REAPPOINT HIM I THINK IT WILL BE HARD FOR THEM TO KISS AND MAKE UP HE SAID REFERRING TO TESTY EXCHANGES THAT HAVE OCCURRED BETWEEN THE BANK GOVERNOR AND SOME OF HIS LIBERAL PARTY CRITICS PAUL MARTIN WHO IS CONSIDERED A POSSIBLE FINANCE MINISTER SAID RECENTLY THAT THE LIBERAL PARTY DOESN'T HAVE ANY CURRENT QUARREL WITH MR CROW THE LIBERALS BLAMED THE CENTRAL BANK FOR SLOWING CANADA'S ECONOMIC RECOVERY IN 1991 BY KEEPING INTEREST RATES TOO HIGH 9310280115 931028 FORD REPORTS QUARTERLY PROFIT OF 463 MILLION THIRD PERIOD'S TURNAROUND FROM YEAREARLIER LOSS IS BETTER THAN EXPECTED BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH FORD MOTOR CO REPORTED A BETTERTHANEXPECTED THIRDQUARTER PROFIT OF 463 MILLION OR 79 CENTS A SHARE AS THE AUTO MAKER REVERSED A YEAREARLIER LOSS WITH STRONG EARNINGS FROM ITS FINANCIAL OPERATIONS ONETIME TAX CREDITS AND THE BEST THIRDQUARTER US AUTOMOTIVE RESULTS IN FIVE YEARS ALTHOUGH FORD'S WORLDWIDE AUTOMOTIVE BUSINESS HAD AN OPERATING LOSS OF 206 MILLION IN THE PERIOD INVESTORS SAW THE NO 2 AUTO MAKER'S OVERALL RESULTS AS CAUSE FOR OPTIMISM FOR A BROADER AUTOINDUSTRY RECOVERY ONE BENEFICIARY GENERAL MOTORS CORP WHICH SAW ITS SHARES JUMP 150 TO 46875 IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING ON HOPES IT WILL RELEASE STRONGERTHANEXPECTED THIRDQUARTER RESULTS THIS MORNING GM'S THREE BIG NONAUTOMOTIVE SUBSIDIARIES YESTERDAY REPORTED COMBINED NET INCOME OF 5897 MILLION UP 23 FROM YEARBEFORE EARNINGS OF 5766 MILLION FORD'S LATEST THIRDQUARTER RESULTS BENEFITED FROM THE COMPARISON WITH A YEAREARLIER LOSS OF 272 MILLION OR 66 CENTS A SHARE THE LATEST QUARTER GOT A BIG BOOST FROM A ONETIME NET GAIN OF 140 MILLION OR 28 CENTS A SHARE THAT CAME FROM CHANGES IN ACCOUNTING FOR TAX DEDUCTIONS FORD BOOSTED ITS WORLDWIDE REVENUE TO 245 BILLION UP 12 BILLION FROM THE YEAR BEFORE WE'RE ENCOURAGED BY THE RESULTS SAID DAVID N MCCAMMON FORD'S VICE PRESIDENT FINANCE THE AUTO BUSINESS SEEMS TO BE STRONGER THAN THE REST OF THE ECONOMY FORD'S STOCK CLOSED AT 60375 UP 625 CENTS IN HEAVY BIG BOARD COMPOSITE TRADING FORD'S AUTOMOTIVE OPERATIONS CONTINUED TO SHOW RELATIVELY WEAK RESULTS CONSIDERING THAT THE COMPANY'S US FACTORIES OPERATED AT 102 OF THEIR REGULAR TWOSHIFT CAPACITY DURING THE LATEST QUARTER EXCLUDING A ONETIME TAX CREDIT OF 170 MILLION FORD'S US OPERATIONS EARNED 162 MILLION OR ABOUT 188 A VEHICLE OVERSEAS FORD LOST 261 MILLION ON AUTOMOTIVE OPERATIONS INCLUDING A 217 MILLION DEFICIT AT FORD OF EUROPE AND 108 MILLION OF RED INK AT THE JAGUAR LUXURYCAR UNIT THE JAGUAR LOSS INCLUDED A 65 MILLION CHARGE FOR CONSOLIDATING JAGUAR STAMPING INTO A BRITISH FORD PLANT A YEAR BEFORE FORD OF EUROPE AND JAGUAR HAD LOSSES OF 285 MILLION AND 135 MILLION RESPECTIVELY FORD'S WORLDWIDE AUTO OPERATIONS HAD A PRETAX OPERATING LOSS OF 206 MILLION NARROWED FROM A YEARBEFORE DEFICIT OF 927 MILLION BUT FORD STILL EARNED FAR LESS ON EVERY VEHICLE IT SOLD IN THE THIRD QUARTER THAN ITS SMALLER RIVAL CHRYSLER CORP DESPITE BEING THE INDUSTRY'S LOWCOST PRODUCER FORD EARNED AN AVERAGE OF 355 PER VEHICLE DURING THE THIRD QUARTER ON WORLDWIDE SALES OF 1303000 CARS AND TRUCKS CHRYSLER EARNED ABOUT 840 ON EACH VEHICLE IT SOLD IN THE US AND CANADA MR MCCAMMON SAID FORD IS MAKING PROGRESS IN REDUCING COSTS TO IMPROVE AUTOMOTIVE PROFITS PARTICULARLY IN EUROPE BUT HE SAID FORD'S HOPES FOR STRONGER AUTOMOTIVE PROFITS DEPEND HEAVILY ON CONTINUED OVERALL SALES GROWTH AND HIGHER PRICES IF THE US AND EUROPEAN MARKETS RECOVER RIVALS MAINLY GM IN THE US WILL HAVE LESS EXCESS CAPACITY AND WILL BEGIN RAISING PRICES IF THAT HAPPENS MR MCCAMMON SAID FORD WILL TRY TO REDUCE ITS REBATES AND OTHER DISCOUNTS EFFECTIVELY RAISING PRICES FROM THE CURRENT LEVEL OF 11 OF REVENUE IN THE US HIGHER PRICES OF JAPANESE VEHICLES BECAUSE OF THE RISING YEN HELPED FORD TO CUT REBATES AND OTHER DISCOUNTS PER VEHICLE TO 865 IN THE THIRD QUARTER DOWN 188 FROM A YEAR BEFORE HE SAID LOWPROFIT SALES OF VEHICLES TO FLEET CUSTOMERS FELL BY 14 FROM YEAREARLIER LEVELS WHILE SALES TO RETAIL CUSTOMERS ROSE 18 HE ADDED AND IN A HAPPY NOTE FOR FORD US HOURLY WORKERS MR MCCAMMON SAID IT'S LIKELY THEY'LL RECEIVE PROFITSHARING CHECKS FOR 1993 SINCE FORD'S US CAR OPERATIONS EARNED A TOTAL OF 642 MILLION THROUGH SEPT 30 EXCLUDING THE LATEST ONETIME TAX GAIN ANALYSTS SAID FORD MAY ALSO BE SHIFTING SOME OF ITS AUTOMOTIVE EARNINGS INTO ITS FINANCE UNIT WHICH PROFITS FROM FORD'S AGGRESSIVE STRATEGY OF LEASING CARS AND TRUCKS THE FINANCE SUBSIDIARY IS A GOLD MINE SAID PAINEWEBBER ANALYST STEPHEN GIRSKY FORD'S FINANCE OPERATIONS HAD RECORD EARNINGS OF 391 MILLION UP FROM 302 MILLION THE YEAR BEFORE FORD ALSO SAID IT HAD IMPROVED RESULTS IN BRAZIL WHERE ITS AUTOLATINA UNIT ENJOYED A 47 INCREASE IN SALES THOSE RESULTS COUPLED WITH THE ACCOUNTING GAINS HELPED FORD EASILY SURPASS EARNINGS EXPECTATIONS THAT RANGED FROM BREAKEVEN TO 20 CENTS A SHARE ALL OF THE KEY TRENDS ARE MOVING IN THE RIGHT DIRECTION AND ARE COMING TOGETHER FOR SOME SOLID EARNINGS RESULTS SAID THOMAS M GALVIN AN INDUSTRY ANALYST WITH CJ LAWRENCE INC IN NEW YORK FOR THE NINE MONTHS ENDED SEPT 30 FORD EARNED 18 BILLION OR 324 A SHARE ON REVENUE OF 807 BILLION THE RESULTS COMPARE WITH A YEAREARLIER NET LOSS OF 65 BILLION OR 1377 A SHARE ON REVENUE OF 747 BILLION SEPARATELY TWO OF GM'S THREE NONAUTOMOTIVE UNITS REPORTED IMPROVED NET INCOME EDS THE COMPUTERSERVICES OPERATION BASED IN DALLAS SAID NET ROSE TO 1916 MILLION OR 40 CENTS A SHARE IN THE THIRD QUARTER FROM 1673 MILLION OR 35 CENTS A SHARE REVENUE ROSE JUST 1 TO 208 BILLION AT HUGHES NET INCOME ROSE TO 1931 MILLION OR 56 CENTS A SHARE FROM 1123 MILLION OR 38 CENTS A SHARE HUGHES SAID ITS LATEST QUARTER RESULTS BENEFITED FROM AN 897 MILLION PRETAX GAIN FROM AN ASSET SALE AT GMAC NET INCOME FELL TO 205 MILLION REFLECTING A 29 MILLION ONETIME EXPENSE TO REFLECT THE COST OF A RECENTLY ENACTED TAX INCREASE GMAC EARNED 297 MILLION IN THE YEAREARLIER QUARTER 9310280114 931028 FALL ART AUCTIONS TO TEST CLAIMS THAT THE WORST IS OVER BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORE THAN 250 MILLION IN PAINTINGS AND SCULPTURES GO ON THE BLOCK AT NEW YORK'S BIG FALL ART AUCTIONS STARTING TUESDAY TESTING CLAIMS THAT THE WORST IS OVER FOR THE BILLIONDOLLAR MARKET FOR ART UP FOR SALE ARE A BACKBREAKING 80 PICASSOS IN A SINGLE NIGHT SOME PRICED SO CHEAPLY AT 8000 A SKETCH THAT SEEMINGLY ANYONE CAN OWN ONE THERE'S A SMATTERING OF SURREALIST ART INCLUDING DALI'S OVERTHETOP 2 MILLION BLOCKBUSTER THE ASCENSION OF CHRIST A BARRAGE OF CALDER SCULPTURES AND SOME TOPQUALITY DEGAS BALLERINAS AND MATISSE FLOWERS MOST CARRY REALISTIC PRESALE PRICE ESTIMATES PERHAPS TWOTHIRDS OF THE MONEY PAID FOR SIMILAR WORKS DURING THE ART BOOM OF THE LATE 1980S THE TWOWEEK ROUND OF SALES OF IMPRESSIONIST MODERN AND CONTEMPORARY ART WILL TAKE PLACE AT AUCTION HOUSES CHRISTIE'S INTERNATIONAL PLC AND SOTHEBY'S HOLDINGS INC IN NEW YORK BUT THE SALES FEATURE NO MASTERPIECES AND THUS NO DRAMA SO IF THE PAINTINGS DON'T SPEAK FOR THEMSELVES MARKETING HAS TO THE MERCHANDISE FOR SALE AT BOTH AUCTIONS AND GALLERIES IS PERHAPS THE MOST AGGRESSIVELY AND CONSCIOUSLY MARKETED PASSEL OF ART HYPED WITH TOURS TO EUROPE ASIA AND ISRAEL CORPORATE DINNERS WITH TABLES PLACED UNDER RENOIRS CELEBRITY NAMES VELVETGLOVE SALES PITCHES AND SPECIAL CATALOGUE INSERTS OF ANY ART SINCE THE ART MARKET BOOM WHY DO THESE ART SALES MATTER TO PEOPLE WHO AREN'T ABOUT TO SNAP UP A 2 MILLION DALI IN RECENT YEARS FINE ART'S THUNDER HAS BEEN STOLEN A BIT BY RAGING MARKETS IN JEWELRY AND DECORATIVE ARTS BUT THESE COMING SALES ALONG WITH ANECDOTAL RESULTS FROM ART DEALERS WHOSE BUSINESS HEATS UP DURING AUCTION SEASON ARE STILL THE SEMIANNUAL BAROMETER OF WHICH ARTISTS ARE HOT WHERE PRICES ARE GOING AND MOST IMPORTANT OF CONSUMER CONFIDENCE IN THE WORLD ART MARKET IT WAS THREE YEARS AGO IN NOVEMBER 1990 THAT THE ART MARKET COLLAPSED DURING THAT FALL'S ROUND OF SALES MORE THAN HALF OF THE IMPRESSIONIST PAINTINGS FOR SALE DIED ON THE AUCTION BLOCK AND PRICES FELL ABOUT 50 DURING THE NEXT YEAR NOW PRICES HAVE BEGUN TO CRAWL BACK UP WITH SEVERAL WORKS FETCHING MORE THAN 10 MILLION LAST YEAR CHRISTOPHER BURGE PRESIDENT OF CHRISTIE'S USA THE BRITISH COMPANY'S STATESIDE UNIT DUBS THE CURRENT ARTMARKET SITUATION A GENTLE RECOVERY SAYS ANDRE EMMERICH CONTEMPORARY ART DEALER AND CHAIRMAN OF THE ART DEALERS ASSOCIATION THE MARKET HAS FOUND ITS SOLID BOTTOM AND YOU CAN BUY WONDERFUL ART AT GOOD PRICES BUT THAT SAID HE ADDS IT'S A WHOLE NEW BALLGAME THERE'S LESS ART ON THE MARKET FEWER BUYERS AND THEY'RE EXTREMELY PRICECONSCIOUS HOW MUCH HAS THE MARKET CRACKED CONSIDER THIS IF EVERY ARTWORK UP FOR AUCTION IN THE NEXT TWO WEEKS SELLS AT THE HIGHEST PRESALE PRICE ESTIMATE GIVEN BY THE AUCTION HOUSE THE TWO COMPANIES WILL RAISE 270 MILLION THAT'S LESS THAN SOTHEBY'S MADE IN A SINGLE NIGHT IN MAY 1990 BUT IT'S ALMOST 100 MILLION ABOVE THE TOTAL TWO YEARS AGO THE MARKET IN TERMS OF STEADILY RISING PRICES ISN'T COMING BACK RIGHT AWAY AND MAY NOT AT ALL UNTIL THE INFLATION RATE PICKS UP KAUFMAN & BROAD INC CHAIRMAN ELI BROAD TOLD AN AUDIENCE AT A METROPOLITAN MUSEUM OF ART PANEL EARLIER THIS MONTH NONETHELESS HE SAYS HE AND HIS FOUNDATION HAVE BOUGHT 100 WORKS OF CONTEMPORARY ART AT HISTORICALLY SPEAKING BARGAIN PRICES IN THE PAST TWO YEARS BUT MILLIONDOLLAR PLAYERS ASIDE THE ART MARKET COLLAPSED ON MAIN STREET TOO THE PAINTINGS MARKET HAS TAKEN A TREMENDOUS BEATING SAYS KAREN KEANE MANAGING DIRECTOR OF THE BOSTON AUCTION HOUSE SKINNER INC WHERE SALES FETCH AN AVERAGE OF 3500 PER ARTWORK COMING OFF OF THE '80S WE ALL HAD A SHOCK AND SELLERS REFUSED TO CONSIGN THEIR WORKS TO AUCTION AT PRICE ESTIMATES THAT FIGURED IN THE MARKET'S DECLINE NOW SHE SAYS ART PRICES ARE DOWN YOU'VE GOT TWO YEARS OF SALES RESULTS TO JUSTIFY LOWER ESTIMATES CONSIGNERS ARE WILLING TO DANCE AND DANCE TO THE AUCTION HOUSE'S TUNE PREDICTIONS OF HOW THESE AUCTION WILL FARE RANGE BETWEEN A PICASSO CARNAGE TO BUSINESS AS USUAL WITH FEW DEALERS EXPECTING HOLDYOURBREATH AUCTION THEATER OR BLOWOUT SALES IN THE PERSISTENTLY POKEY MARKET OF CONTEMPORARY ART SO THE AUCTION HOUSES HAVE TO MANUFACTURE AN EXCITING EVENT WHERE IT DOESN'T EXIST CONSIDER SOTHEBY'S PRICIEST WORK THE WINE PRESS A VIBRANT EXOTIC MATISSE EXECUTED BY THE ARTIST LATE IN HIS LIFE 1951 IT'S EXPECTED TO BRING 10 MILLION OR MORE THE ABSTRACT CUTOUT IN PURPLE ORANGE AND HOT PINK IS ALLOCATED FIVE SINGLESPACED PAGES IN THE CATALOG THREE TIMES THE SPACE SOTHEBY'S ALLOCATED TO A KANDINSKY PAINTING THAT WAS EXPECTED TO SELL FOR ABOUT THE SAME IN MAY 1990 AND ENDED UP SELLING FOR 209 MILLION BUT SOMETIMES MARKETING GIMMICKS BACKFIRE A 1 1/2FOOTHIGH FOLDOUT OF THE ARTWORK IN THE CATALOG RIPS AT THE CENTER WHEN OPENED NAME SELLERS AT THIS ROUND OF AUCTIONS INCLUDE THE FORBES MAGAZINE COLLECTION MRS GARY COOPER THE ESTATE OF PETER K SHARP WHO HAD OWNED THE CARLYLE HOTEL AND LESS GLAMOROUSLY THE FEDERAL DEPOSIT INSURANCE CORP SELLING SEVERAL ART WORKS ON BEHALF OF FIRST CITY BANK OF HOUSTON CELEBRITY VALUE IS HUGELY IMPORTANT IN A MARKET THAT LACKS CONFIDENCE EARLIER THIS FALL CITIBANK ART ADVISORY THE PRIVATE BANKING WING OF THE BIG BANK HAD ITS CHOICE OF FETING ITS DECAMILLIONAIRE CLIENTS AT ONE OF SEVERAL CHRISTIE'S EVENTS A PARTY AND LECTURE FOR MILLIONDOLLAR JEWELRY FOR IMPRESSIONIST AND MODERN PAINTINGS OR FOR THE RELATIVELY OBSCURE ARABIANTHEMED ART THAT HUNG IN THE LATE MALCOLM FORBES'S VACATION HOME IN TANGIERS MOROCCO THE MILLIONAIRES OPTED FOR THE FORBES SALE AND IT BROUGHT 9 MILLION MORE THAN EXPECTED CHRISTIE'S IS RUMORED TO BE IN NEGOTIATIONS TO SELL THE ART DECO FURNITURE AND DECORATIVE ARTS OF ACTRESS AND SINGER BARBRA STREISAND NOT THAT THE AUCTION HOUSES HAVE A MONOPOLY ON SAVVY GIMMICKS AND THE HARD SELL MR EMMERICH BUSES COLLECTORS AND MUSEUM CURATORS UP TO HIS HUGE ESTATE IN UPSTATE NEW YORK LOADS THEM INTO OPENAIR TRUCKS EQUIPPED WITH SPEAKERS AND OFFERS A GUIDED TOUR OF HIS WARES TOWERING GEOMETRIC SCULPTURES VIEWED AGAINST A BACKDROP OF MAGNIFICENT FALL FOLIAGE IN SEPTEMBER A COTERIE OF SOHO DEALERS HELD A HUGE BLOCK PARTY OF COORDINATED OPENINGS AND THE FULLER BUILDING WHICH HOUSES MORE THAN A DOZEN DEALERS ON NEW YORK'S EAST 57TH STREET FOLLOWED WITH A SIMILAR EVENT LAST NIGHT THE INTERNATIONAL ART AND ANTIQUE DEALER'S SHOW INCLUDED AN OPENING NIGHT SCAVENGER HUNT THE PRIZE WAS A TRIP TO FRANCE WHICH NOTSOSUBTLY ENCOURAGED BUYERS TO SPEND MORE TIME AND ATTENTION TO THE DEALER'S WARES BUT SUCH TACTICS GO SO FAR IT'S THE ART THAT CLINCHES THE SALE IT'S NOT LIKE A MOVIE WE DON'T SAY COME SEE IT SAYS MICHAEL FINDLAY SENIOR DIRECTOR OF IMPRESSIONIST AND MODERN ART AT CHRISTIE'S OF THE AUCTIONS NONETHELESS HE NOTES CHRISTIE'S HAS BEEN CROSSMARKETING MORE PROFESSIONALLY IT IS PITCHING PAINTINGS TO WEALTHY JEWELRY COLLECTORS AND VICE VERSA FOR EXAMPLE AND HOSTING CORPORATE DINNERS SUCH AS A RECENT ONE FOR GIVENCHY IN ITS VIEWING ROOM IN ADVANCE OF SALES AND MEMBERS OF THE FIRM'S IMPRESSIONIST DEPARTMENT HAVE BEEN IN EIGHT COUNTRIES IN THE PAST THREE WEEKS ALONE HE SAYS MR FINDLAY HAS HIT ALONG WITH CHRISTIE'S CHAIRMAN SEVERAL ASIAN CITIES AS PART OF THAT COMPANY'S PUSH INTO THE REGION 9310280113 931028 DUPONT POSTS 3RDPERIOD LOSS OF 680 MILLION RESULT FOLLOWS BIG CHARGE FOR COST CUTS CARBIDE REPORTS 73 PROFIT GAIN BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DUPONT CO REPORTED A 680 MILLION NET LOSS FOR THE THIRD QUARTER REFLECTING 13 BILLION IN AFTERTAX CHARGES LINKED TO ASSET WRITEDOWNS PLANT CLOSURES AND OTHER COSTCUTTING STEPS ANOTHER BIG CHEMICAL CONCERN UNION CARBIDE CORP POSTED A 73 INCREASE IN NET INCOME ATTRIBUTING THE RISE TO CERTAIN NONCHEMICAL OPERATIONS AND ITS OWN EFFORT TO CUT COSTS FOR BOTH COMPANIES THERE WAS LITTLE SIGN OF ANY IMPROVEMENT IN THE CHEMICAL MARKET PARTICULARLY IN EUROPE DUPONT BASED IN WILMINGTON DEL SAID ITS RESTRUCTURING PROGRAM IS BEGINNING TO IMPROVE PRODUCTIVITY ALTHOUGH MUCH OF THE BOTTOMLINE IMPACT CONTINUES TO BE MASKED BY POOR ECONOMIC CONDITIONS IN EUROPE AND JAPAN THE OVERWHELMING MESSAGE COMING OUT OF DUPONT'S EARNINGS IS THAT EUROPE IS A DISASTER SAID KIDDER PEABODY & CO ANALYST PAUL LEMING LOOKING AT THE RESULTS FOR COMPANIES SUCH AS DUPONT DOW CHEMICAL CO OR PPG INDUSTRIES INC ALL OF WHICH HAVE SIZABLE EUROPEAN EXPOSURES HE SAID THAT'S THE DISAPPOINTMENT JUST HOW STUBBORNLY EUROPE HAS RESISTED ANY KIND OF IMPROVEMENT WHILE THE US INDUSTRY MAY BE TRENDING UP SLIGHTLY THE ANALYST SAID CHEMICAL MAKERS HAVE NO ABILITY TO RAISE PRICES ANYWHERE EVEN THOUGH UNIT VOLUME IS INCHING UPWARD AFTER 191 A SHARE IN CHARGES DUPONT HAD A NET LOSS OF 101 A SHARE IN THE YEAREARLIER QUARTER THE COMPANY HAD NET INCOME OF 420 MILLION OR 63 CENTS A SHARE SALES SLIPPED 52 TO 923 BILLION FROM 973 BILLION EXCLUDING THE RESTRUCTURING COSTS AND OTHER SPECIAL ITEMS IN BOTH PERIODS DUPONT SAID ITS EARNINGS DECLINED TO 51 CENTS A SHARE FROM 56 CENTS IT ASCRIBED MUCH OF THAT SLIPPAGE TO THE SEVENCENTASHARE REDUCTION CAUSED BY A CONTINUING STRIKE BY WORKERS OF ITS CONSOL ENERGY COAL AFFILIATE UNFAVORABLE CURRENCYEXCHANGE RATES ALSO SERVED TO TUG DOWN THE RESULTS A SPOKESMAN SAID DUPONT'S SPECIAL CHARGES INCLUDED AN AFTERTAX CHARGE OF 375 MILLION THAT IT ANNOUNCED A MONTH AGO WHEN IT DISCLOSED PLANS FOR ANOTHER ROUND OF JOB CUTS THE COMPANY CAUTIONED AT THE TIME THAT THE THIRDQUARTER WOULD CONTAIN FURTHER CHARGES AND IN YESTERDAY'S RESULTS THOSE TALLIED UP TO 920 MILLION ON AN AFTERTAX BASIS DUPONT CHAIRMAN EDGAR S WOOLARD JR REITERATED THAT THE COMPANY IS DETERMINED TO TAKE WHATEVER STEPS ARE NECESSARY TO MAKE ALL OUR BUSINESSES COMPETITIVE IN 1994 THE COMPANY HAS MADE EXTRAORDINARY AND DIFFICULT CHANGES IN ORDER TO LOWER ITS COSTS HE SAID AND HE VOWED TO CONTINUE TO PURSUE OUR OBJECTIVES AGGRESSIVELY AND MAKE OUR BUSINESSES HEALTHY BY THE END OF NEXT YEAR UNION CARBIDE BASED IN DANBURY CONN REPORTED NET OF 38 MILLION OR 23 CENTS A SHARE COMPARED WITH 22 MILLION OR 14 CENTS A SHARE IN THE YEAREARLIER PERIOD THE IMPROVEMENT CAME DESPITE AN 89 DROP IN SALES TO 113 BILLION FROM 124 BILLION THE COMPANY SAID PRICES FOR MANY OF ITS MOST CYCLICAL PRODUCTS REMAIN AT HISTORIC LOW LEVELS ALTHOUGH LOWER RAWMATERIAL COSTS HELPED MARGINS CARBIDE ENJOYED VERY FAVORABLE RESULTS HOWEVER FROM ITS LICENSING ACTIVITIES AND LESSCYCLICAL OPERATIONS BOTH COMPANIES ANNOUNCED THEIR RESULTS BEFORE THE CLOSE OF TRADING IN COMPOSITE TRADING ON THE NEW STOCK EXCHANGE DUPONT SHARES SLIPPED 50 CENTS TO 4650 CARBIDE SHARES ALSO FELL 50 CENTS TO 1950 9310280112 931028 FOREIGN EXCHANGE DOLLAR EDGES UP AGAINST MARK AND YEN AHEAD OF FRESH DATA ON US ECONOMY BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR ROSE AGAINST THE YEN AND THE MARK IN QUIET TRADING WEDNESDAY AS INVESTORS AWAITED FRESH INDICATIONS OF THE US ECONOMY'S HEALTH BEFORE STAKING OUT NEW POSITIONS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16795 MARKS UP FROM 16788 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10872 YEN UP FROM 10830 YEN STERLING WAS TRADING AT 14805 UP FROM 14795 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10815 YEN AND AT 16805 MARKS THE DAY'S ONLY ACTION DEALERS SAID CAME DURING THE NEW YORK MORNING WHEN SOME HEAVY BUYING BY SPECULATIVE FUNDS SENT THE DOLLAR HIGHER AGAINST THE YEN TRADERS NOTED THAT THE DOLLARBUYING LIFTED THE US CURRENCY THROUGH AN IMPORTANT TECHNICAL LEVEL AT 10880 YEN FROM ABOUT THE 10820YEN LEVEL SENDING PLAYERS SCRAMBLING TO CLIMB ABOARD THE BANDWAGON FOR A DOLLAR RALLY IT LOOKED LIKE WE WERE GOING TO RUN FOR THE HILLS UP TO 110 YEN SAID TOM HOGE A CORPORATE FOREIGNEXCHANGE DEALER AT CREDIT SUISSE IN NEW YORK BUT WHEN HEAVY DOLLAR SALES BY JAPANESE EXPORTERS KICKED IN JUST BELOW THE 109YEN LEVEL TRADERS SAID THE DOLLAR QUICKLY REVERSED COURSE AND SPENT THE REST OF THE DAY TRADING QUIETLY JUST BELOW 10880 YEN JAPANESE EXPORTING COMPANIES WHO HAVE THEIR EARNINGS IN DOLLARS AND OTHER FOREIGN CURRENCIES AND MUST THEN CONVERT THEM FOR YEN OFTEN SEEK TO MAXIMIZE THEIR PROFITS BY PLACING ORDERS TO SELL THE DOLLAR WHEN IT RISES TO HIGH LEVELS AGAINST THE YEN AND WITH MANY SALES ORDERS CURRENTLY SET AT AROUND 109 YEN AND HIGHER JAPANESE EXPORTERS ARE PUTTING A CAP ON ANY MOVE UP BY THE DOLLAR SAID ANN FINALY ASSISTANT VICE PRESIDENT AT INDUSTRIAL BANK OF JAPAN LTD IN NEW YORK IF YOU ARE A JAPANESE EXPORTER 109 YEN HAS GOT TO LOOK LIKE A PRETTY DECENT LEVEL TO SELL DOLLARS CREDIT SUISSE'S MR HOGE SAID MEANWHILE AGAINST THE MARK TRADERS SAID THE DOLLAR WAS RELATIVELY LIFELESS FOR MOST OF THE DAY AS PLAYERS LOOKED FORWARD TO THURSDAY'S CRUCIAL REPORT ON US THIRDQUARTER GROSS DOMESTIC PRODUCT OR THE TOTAL VALUE OF GOODS AND SERVICES BEFORE MAKING ANY BIG MOVES TRADERS SAID THE GDP REPORT WILL BE SCRUTINIZED FOR SOME INDICATION THAT THE US ECONOMY IS FINALLY PICKING UP SPEED AFTER CRAWLING ALONG DURING THE PAST SEVERAL MONTHS THEY ADDED THAT THE GDP DATA HAS TAKEN ON ADDITIONAL IMPORTANCE IN THE WAKE OF THE DOLLAR'S SURPRISING EIGHTPFENNIG RALLY AGAINST THE MARK SINCE MIDOCTOBER WHICH WAS BASED AT LEAST IN PART ON THE GROWING CONVICTION THAT THE US ECONOMY WAS IMPROVING TRADERS SAID THAT A POSITIVE GDP REPORT WOULD BE THE FIRST REALLY FIRM EVIDENCE TO BACK UP THAT VIEW IT'S A LITTLE TOUGH TO AGGRESSIVELY BUY THE DOLLAR AT 168 MARKS UNTIL THE MARKET HAS MORE EVIDENCE THE US RECOVERY IS PICKING UP STRENGTH MR HOGE COMMENTED MEANWHILE THE CANADIAN DOLLAR STUMBLED THEN RECOVERED WHEN NEWLYELECTED LIBERAL PRIME MINISTER JEAN CHRETIEN REAFFIRMED THAT HIS GOVERNMENT INTENDS TO RENEGOTIATE SPECIFIC ELEMENTS OF THE NORTH AMERICAN FREE TRADE AGREEMENT TRADERS SAID THE MARKET IS CONCERNED THAT PROBLEMS WITH NAFTA WOULD HURT CANADIAN EXPORTS ONE TRADER SAID THE CANADIAN DOLLAR WILL CONTINUE TO BE SKITTISH AND TRADE IN A NARROW RANGE UNTIL MARKETS SEE WHETHER THERE IS A WORKING RELATIONSHIP BETWEEN THE RULING LIBERAL PARTY AND THE OPPOSITION BLOC QUEBECOIS WHICH WANTS AN INDEPENDENT QUEBEC 9310280111 931028 THE CLINTON HEALTH PLAN DOCTORS BACK CHANGES HMOS DRUG FIRMS JITTERY BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SOME LATE REVISIONS IN THE WHITE HOUSE HEALTH PLAN ARE BEING WELCOMED BY DOCTORS AND INSURERS BUT CAUSING JITTERS AMONG DRUG COMPANIES AND HEALTHMAINTENANCE ORGANIZATIONS WHILE HEALTHINDUSTRY PROFESSIONALS YESTERDAY SAID THE REVISIONS ARE NOTEWORTHY THEY CAUTIONED THAT THE CHANGES DON'T DRASTICALLY TRANSFORM THEIR PREVIOUS VIEWS OF PRESIDENT CLINTON' PLAN SINCE DETAILS OF THE CLINTON PLAN EMERGED LAST MONTH REACTION FROM HMOS HAS GENERALLY BEEN POSITIVE WHILE DRUG COMPANIES INSURERS AND DOCTORS HAVE BEEN MORE CRITICAL IN ONE SWITCH THE WHITE HOUSE YESTERDAY SAID IT WANTS TO ENSURE THAT PATIENTS CAN GET A BROAD CHOICE OF DOCTORS IF THEY WANT FOR THE PAST MONTH THE ISSUE OF FREEDOM TO PICK ONE'S DOCTOR UNDER HEALTH REFORM HAS ATTRACTED WIDE ATTENTION THE CHANGE IS DIRECTED AT HMOS WHICH CHANNEL MEMBERS TO A PRESELECTED GROUP OF DOCTORS AND HOSPITALS THAT ARE CHOSEN FOR THEIR COSTEFFECTIVENESS SPECIFICALLY THE BILL INTRODUCED YESTERDAY CALLS FOR HMOS CONTRACTING WITH STATE HEALTH ALLIANCES TO GIVE MEMBERS THE CHOICE OF SEEING DOCTORS OUTSIDE THE HMO NETWORK IF THEY WANT PEOPLE WANTING THIS OPTION WOULD PAY MORE FOR THEIR HEALTH COVERAGE THAN THE REGULAR HMO PREMIUMS AND WOULD PARTICIPATE IN WHAT ARE KNOWN AS POINT OF SERVICE NETWORKS MAKING SUCH NETWORKS AVAILABLE IS ONE WAY OF COMBATING THE CHOICE' ISSUE SAYS SY STERNBERG AN EXECUTIVE VICE PRESIDENT AT NEW YORK LIFE INSURANCE CO NEW YORK LIFE ALREADY IS AN ACTIVE PROVIDER OF SUCH NETWORKS WHICH AMOUNT TO A HYBRID OF TRADITIONAL INSURANCE AND HMOS BUT SOME HMO EXECUTIVES CONTEND THAT IF IT BECOMES TOO EASY FOR PEOPLE TO GET CARE OUTSIDE THE HMO THIS WILL GREATLY HURT THEIR PROGRAMS FOR COSTCONTAINMENT ALLAN HOOPS PRESIDENT OF PACIFICARE HEALTH SYSTEMS INC SAYS HE IS CONCERNED THAT IF HIS HMO DECIDES THAT A MEMBER DOESN'T REALLY NEED SURGERY THE MEMBER NONETHELESS MAY GO TO A DOCTOR OUTSIDE PACIFICARE'S SYSTEM AND GET A COSTLY UNNECESSARY OPERATION WE CAN DO IT A POINTOFSERVICE NETWORK AS EASILY AS ANYBODY MR HOOPS SAYS THE QUESTION IS WHETHER IT'S ADVISABLE TO ENCOURAGE IT AS A MATTER OF PUBLIC POLICY IN A SIMILAR VEIN THOMAS PYLE HEAD OF HMO ACTIVITIES FOR METROPOLITAN LIFE INSURANCE CO CONTENDS THAT ENCOURAGING POINTOFSERVICE NETWORKS WILL SYSTEMATICALLY RAISE THE COST OF CARE AND IS JUSTIFIED MOSTLY FOR POLITICAL REASONS SOME HMO EXECUTIVES THOUGH SAY THAT EVEN WHEN THEY OFFER MEMBERS THE CHANCE TO GET CARE OUTSIDE THEIR REGULAR NETWORK FEW ULTIMATELY DO SO HARRIS BERMAN CHIEF EXECUTIVE OFFICER OF TUFTS ACCOUNTABLE HEALTH PLAN SAID HIS PLAN HAS OFFERED A POINTOFSERVICE OPTION FOR EIGHT YEARS YET FINDS ONLY 10 OF MEMBERS CHOOSE IT MEANWHILE A SWITCH IN THE PRICING ASSOCIATED WITH A PROPOSED DRUGBENEFIT PROGRAM FOR THE ELDERLY EVOKED MORE OUTCRIES FROM THE PHARMACEUTICAL INDUSTRY IN ITS HEALTH BILL THE ADMINISTRATION CALLS FOR INCLUDING PRESCRIPTION MEDICINE IN THE MEDICARE HEALTHINSURANCE PROGRAM FOR THE ELDERLY PEOPLE OVER AGE 65 CURRENTLY ARE AMONG THE BIGGEST BUYERS OF PRESCRIPTION DRUGS BUT THEY GENERALLY MUST PAY THOSE COSTS OUT OF POCKET BECAUSE MEDICARE DOESN'T COVER OUTPATIENT PRESCRIPTIONS TO REIN IN COSTS THE NEW BILL CALLS FOR MAKERS OF BRANDNAME PRESCRIPTION DRUGS TO PAY MEDICARE AT LEAST A 17 REBATE ON THE AVERAGE MANUFACTURERS' PRICE OF PILLS SOLD TO THE ELDERLY THE SIZE OF THAT REBATE HAS EXPANDED FROM 15 SPECIFIED IN LAST MONTH'S DRAFT HEALTH PLAN A SPOKESMAN FOR THE PHARMACEUTICAL MANUFACTURERS' ASSOCIATION LABELED THE PROPOSED REBATE A TAX AND SAID OUR INDUSTRY CAN'T SUSTAIN A TAX LOAD OF 15 MUCH LESS 17 IF THE REBATE PROGRAM TAKES HOLD HE SAID IT COULD MEAN A LOSS OF JOBS IN THE DRUG INDUSTRY OR A CUTBACK IN RESEARCH 9310280110 931028 THE CLINTON HEALTH PLAN HANDICAPPING BEGINS ON WHAT WILL BE SCRAPPED FIRST BY RICK WARTZMAN AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON GOVERNMENT PRINTING PRESSES WERE CHURNING OUT PAGE AFTER PAGE OF THE CLINTON ADMINISTRATION'S MASSIVE HEALTHCARE REFORM BILL TUESDAY WHEN REP JOHN DINGELL GOT WIND OF ONE DETAIL THAT HE DIDN'T MUCH CARE FOR SO THE MICHIGAN DEMOCRAT WHO HEADS THE POWERFUL HOUSE ENERGY AND COMMERCE COMMITTEE GRABBED THE PHONE TO COMPLAIN TO SENIOR WHITE HOUSE AIDE IRA MAGAZINER ABOUT A LASTMINUTE CHANGE IN THE FEDERAL GOVERNMENT'S ASSUMPTION OF MEDICAL COSTS FOR EARLY RETIREES THE PROVISION A BOON FOR BIG MANUFACTURERS INCLUDING THE AUTO MAKERS IN MR DINGELL'S DISTRICT WAS NOW GOING TO BE PHASED IN OVER SEVERAL YEARS BEGINNING IN 1998 BUT AFTER MR DINGELL TOLD MR MAGAZINER THE DELAY COULD COST THE PRESIDENT KEY SUPPORT FOR THE PACKAGE WHITE HOUSE OFFICIALS STOPPED THE PRESSES CLINTON AIDES THEN HASTILY REWROTE THE PROVISION SO IT WOULD TAKE FULL EFFECT IN 1998 THE CLINTON ADMINISTRATION'S SCRAMBLE TO APPEASE AN IMPORTANT LAWMAKER HIGHLIGHTS THE PRESIDENT'S WILLINGNESS TO ALTER THE DETAILS OF HIS HEALTH BILL OVER AND OVER ADMINISTRATION OFFICIALS HAVE STRESSED THEIR INTENTION OF STICKING TO THE PRINCIPLES MR CLINTON HAS ENUNCIATED FROM GUARANTEEING COMPREHENSIVE HEALTH COVERAGE TO ALL AMERICANS TO CONTAINING THE RELENTLESS RISE IN MEDICAL COSTS BUT IN TRYING TO REACH THOSE GOALS THE OFFICIALS CONCEDE THAT MANY OF THE SPECIFICS ARE SURE TO CHANGE FOR ONE THING AS CONGRESS SCRUTINIZES THE FINANCING OF THE PLAN MANY LAWMAKERS WILL BE TEMPTED TO PULL BACK ON THE MANY EXPENSIVE GOODIES MR CLINTON PROPOSES HANDING OUT FROM THE EARLY RETIREES PROVISION TO A NEW PRESCRIPTION DRUG BENEFIT FOR MEDICARE RECIPIENTS TO A NEW LONGTERM CARE PROGRAM YESTERDAY ON CAPITOL HILL AFTER HANDING OVER THE 1336PAGE LEGISLATION TO CONGRESSIONAL LEADERS HILLARY RODHAM CLINTON CALLED THE BILL A FRAMEWORK OFF OF WHICH TO WORK FOR MANY MONTHS AND ESPECIALLY AFTER THE EMERGENCE OF A DRAFT OF THE CLINTON PLAN SIX WEEKS AGO LOBBYISTS REPRESENTING HUNDREDS OF SPECIALINTEREST GROUPS HAVE BEEN FEVERISHLY WORKING TO MODIFY THE PROPOSAL EXECUTIVES FROM DAYTON HUDSON CORP BAUSCH & LOMB AND OTHER GIANT COMPANIES ALSO VISITED WHITE HOUSE HEALTH OFFICIALS TO LAY OUT THEIR CONCERNS MANY GROUPS FROM THE AMERICAN MEDICAL ASSOCIATION TO THE HEALTH INSURANCE ASSOCIATION OF AMERICA BEGAN THE YEAR BY EMPHASIZING THEIR GENERAL SUPPORT FOR AN OVERHAUL OF THE US HEALTH SYSTEM BUT THEY ARE STARTING TO PLAY HARDBALL ZEROING IN ON THE DETAILS THEY WANT CHANGED AND ALREADY OPPOSITION HAS HARDENED AROUND SOME OF THE PLAN'S KEY ELEMENTS GIVEN THIS INTENSE PRESSURE THE CRUCIAL QUESTION THAT ARISES IS WHAT IN THE CLINTON PROPOSAL WILL BE FIRST TO GO MANY EXPERTS PREDICT THAT THE REGULATORY POWER OF THE REGIONAL HEALTH INSURANCE BUYING POOLS KNOWN AS ALLIANCES WILL BE WATERED DOWN I THINK IT'S FAIR TO SAY THAT IT WILL BE DIFFICULT TO GET CONGRESS TO APPROVE REAL STRONG ALLIANCES SAID DOUG COOK THE DIRECTOR OF FLORIDA'S AGENCY FOR HEALTH CARE ADMINISTRATION HE SHOULD KNOW FLORIDA SET UP ITS OWN INSURANCE BUYING POOLS THIS YEAR BY THE TIME THE CONCEPT EMERGED FROM THE STATE LEGISLATURE IN TALLAHASSEE HOWEVER THE POOLS HAD LOST MUCH OF THEIR AUTHORITY TO NEGOTIATE WITH HEALTH INSURERS MR COOK WHO STILL CONSIDERS THE ESTABLISHMENT OF THE POOLS A MAJOR VICTORY SAID SOME STATE LEGISLATORS WERE WORRIED ABOUT CREATING VAST BUREAUCRACIES THAT COULD LURCH OUT OF CONTROL IT DIDN'T HELP HE SAID THAT FLORIDA'S INSURANCE INDUSTRY PUT ON A FULLCOURT PRESS THEY WERE VERY INFLUENTIAL EARLY IN THE PROCESS AT RAISING DOUBTS AND RAISING CONCERNS ABOUT THE POOLS' STRUCTURE HE SAID AT THE FEDERAL LEVEL JOCKEYING IS ALREADY WELL UNDER WAY THE FEDERATION OF AMERICAN HEALTH SYSTEMS WHICH REPRESENTS FORPROFIT HOSPITALS IS ENLISTING ITS 1450 MEMBERS TO CONVINCE CONGRESS TO SCALE BACK THE CLINTON ALLIANCES OUR STRATEGY IS GRASS ROOTS GRASS ROOTS GRASS ROOTS SAID MICHAEL BROMBERG EXECUTIVE DIRECTOR OF THE FEDERATION OTHER GROUPS RANGING FROM THE CHAMBER OF COMMERCE TO THE AMERICAN HOSPITAL ASSOCIATION ARE MAKING NOISE ABOUT THE SAME ISSUE THEY HAVE EVEN DISCUSSED FORMING A COALITION TO LOBBY MORE EFFECTIVELY ANOTHER HOT SPOT IN THE CLINTON PROPOSAL IS THE REQUIREMENT THAT ALL EMPLOYERS HELP PAY FOR THEIR WORKERS' HEALTH COVERAGE THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS WHICH BOASTS OF REPRESENTING MOMANDPOP FIRMS IN EVERY CONGRESSIONAL DISTRICT HAS DECLARED IT WILL BATTLE ANY BILL THAT INCLUDES SUCH A MANDATE THOUGH THE NFIB MAY NOT SUCCEED IN KILLING THE MEASURE OUTRIGHT IT SEEMS LIKELY THE REQUIREMENT WILL BE MADE LESS STRINGENT IT'S PRETTY CLEAR THEY HAVE TO FIND A WAY TO SOFTEN THE IMPACT OF THE EMPLOYER MANDATE BEYOND OFFERING GOVERNMENT SUBSIDIES TO SMALL BUSINESSES SAID ED HOWARD EXECUTIVE VICE PRESIDENT OF THE ALLIANCE FOR HEALTH REFORM A NONPARTISAN EDUCATION GROUP YET ANOTHER FEATURE OF THE CLINTON PLAN THAT MANY PEOPLE PREDICT WILL DISINTEGRATE QUICKLY ARE THE CAPS ON PRIVATESECTOR HEALTH PREMIUMS RATHER THAN A RIGID CEILING I THINK IT WILL GET CONVERTED INTO A GENERAL TARGET SAID HEALTH CONSULTANT LYNN ETHEREDGE WHO IS ADVISING THE DEPARTMENT OF HEALTH AND HUMAN SERVICES ON HOW TO SWIFTLY IMPLEMENT A NEW HEALTH SYSTEM THE LAST THING PEOPLE WANT IS A SYSTEM IN WHICH THE FEDERAL GOVERNMENT STARTS BUDGETING 14 OF THE AMERICAN ECONOMY BOTH THE AMA AND HOSPITAL ASSOCIATION SAID THEY COULD ACCEPT A TARGET APPROACH IN THE END WHETHER THE PRESIDENT WINS IN THE HEALTHCARE DEBATE IS LIKELY TO DEPEND FAR MORE ON HIS PRINCIPLES BEING ADOPTED THAN ON THE PARTICULARS WHAT I WORRY ABOUT IS THAT MANY OF MY BUSINESS COLLEAGUES TEND TO BE FOCUSING MORE ON THE TREES AND FORGETTING ABOUT THE FOREST SAID WALTER MAHER DIRECTOR OF FEDERAL RELATIONS AT CHRYSLER CORP 9310280109 931028 CANADIAN PRODUCTION OF MARKET PULP FELL BY 16 IN SEPTEMBER MONTREAL CANADIAN PRODUCTION OF MARKET PULP FELL 16 IN SEPTEMBER FROM THE YEAREARLIER PERIOD WHILE SHIPMENTS ROSE 8 THE CANADIAN PULP AND PAPER ASSOCIATION AN INDUSTRY GROUP SAID CANADIAN MILLS PRODUCED 447000 METRIC TONS OF MARKET PULP IN SEPTEMBER DOWN FROM A YEAREARLIER 535000 METRIC TONS A METRIC TON IS 220462 POUNDS THE INDUSTRY'S OPERATING RATE FOR SEPTEMBER 66 WAS DOWN FROM A YEAREARLIER 82 THE ASSOCIATION REPORTED THE OPERATING RATE OFTEN DECLINES IN SEPTEMBER AS PRODUCERS TAKE DOWNTIME FOR MAINTENANCE AND SOME MILLS TOOK EXTENDED DOWNTIME THIS YEAR BECAUSE OF A GLUT IN THE MARKET AN ASSOCIATION ECONOMIST SAID TOTAL MARKET SHIPMENTS IN SEPTEMBER ROSE TO 547000 METRIC TONS FROM A YEAREARLIER 507000 METRIC TONS SHIPMENTS TO THE US ROSE 37 TO 167000 METRIC TONS FROM 161000 METRIC TONS AND SHIPMENTS TO WESTERN EUROPE FELL 15 TO 145000 METRIC TONS FROM 171000 METRIC TONS SHIPMENTS TO JAPAN ROSE 53 TO 90000 METRIC TONS FROM 59000 METRIC TONS AND SHIPMENTS WITHIN CANADA ROSE 17 TO 61000 METRIC TONS FROM 52000 METRIC TONS CANADIAN PRODUCER INVENTORIES AT THE END OF SEPTEMBER WERE 742000 METRIC TONS A 41DAY SUPPLY COMPARED WITH AUGUST'S 842000 METRIC TONS A 45DAY SUPPLY THE ASSOCIATION SAID INVENTORIES IN SEPTEMBER 1992 WERE 530000 METRIC TONS A 33DAY SUPPLY MARKET PULP IS WOOD PULP SOLD ON THE OPEN MARKET TO PRODUCERS OF PAPER AND OTHER PRODUCTS THE STATISTICS EXCLUDE PULP CONSUMED AT THE PRODUCING MILL OR SHIPPED TO ANOTHER MILL THAT IS AFFILIATED WITH THE PRODUCING MILL 9310280108 931028 LEISURE & ARTS FILM DISASTER EPIC MEETS '90S PSYCHOBABBLE BY JULIE SALAMON A FRIEND OF MINE EXPLAINED WHY HE HADN'T RUSHED TO SEE FEARLESS DO I REALLY NEED TO SEE JEFF BRIDGES PRANCING EUPHORICALLY ON SKYSCRAPER LEDGES BECAUSE HE LIVED THROUGH A PLANE CRASH MY OWN RELUCTANCE WAS BROUGHT ON BY THE BUZZ OF PSYCHOBABBLE THAT HAD SETTLED AROUND THE FILM AND WAS MAKING IT SOUND LIKE A SELFHELP VIDEO FOR DISASTER SURVIVORS THOUGH AT TIMES BOTH THE SMUG EUPHORIA AND THE PSYCHOBABBLE ASSERT THEMSELVES LIKE ANNOYING PESTS WITHOUT THEM FEARLESS WOULDN'T BE QUITE AS AMAZING AS IT IS ITS UNEMBARRASSED EXAMINATION OF PSYCHOLOGICAL TRAUMA SEEMS ESPECIALLY AUDACIOUS NOW AT A TIME WHEN PSYCHOLOGY IN MOVIES USUALLY COMES IN AN OBLIGATORY SUMMARY EXPLANATION OF A CHARACTER'S MOTIVE MR BRIDGES PLAYS MAX KLEIN A SUCCESSFUL ARCHITECT WHO DEEPLY FEARS FLYING UNTIL HE SURVIVES A CRASH HE BEHAVES HEROICALLY LIKE A RESCUER NOT A VICTIM THEN FINDS THE NICE LIFE HE LED BEFORE TOO DULL TOO UNCONSCIOUS OF THE THRILL OF FACING DEATH HE BECOMES FEARLESS HENCE THE BALANCING ON SKYSCRAPER LEDGES HE IS ENLISTED BY A PSYCHIATRIST HIRED BY THE AIRLINE TO HELP CRASH SURVIVORS AND TO HELP A FELLOW PASSENGER A YOUNG WOMAN NAMED CARLA ROSIE PEREZ WHOSE BABY DIED IN THE WRECK SHE IS NOT FEARLESS SHE IS DEEPLY DEPRESSED THE RELATIONSHIP BETWEEN HER AND MR BRIDGES GIVES THE MOVIE A PLOT AND IT IS THE PICTURE'S LEAST CONVINCING ELEMENT MS PEREZ IS VERY SYMPATHETIC AS A DEEPLY RELIGIOUS YOUNG WOMAN FULL OF GUILT BECAUSE SHE DIDN'T SAVE HER CHILD MAYBE BECAUSE HER GRIEF IS MORE COMPREHENSIBLE THAN MAX KLEIN'S INSOUCIANCE THE BOND THAT DEVELOPS BETWEEN THEM DOESN'T SEEM TRUSTWORTHY CERTAINLY IT HAS NO ROMANTIC CHEMISTRY IN IT MS PEREZ'S INTENSITY HER SCREECHY VOICE AND NERVOUS ENERGY SEEM TO BOUNCE RIGHT OFF MR BRIDGES'S COOL SURFACE AND THE OTHERWISE LUCID STORY ADAPTED FROM HIS NOVEL BY RAFAEL YGLESIAS SENDS THESE TWO ACCIDENTAL SURVIVORS ON A RATHER LAME SPIRITUAL ODYSSEY TO A SHOPPING MALL WHERE MAX AND CARLA BUY CHRISTMAS GIFTS FOR HER DEAD CHILD AND HIS DEAD FATHER STILL THE ARTIFICIALITY OF THEIR CONNECTION DOESN'T BREAK THE MOVIE'S MESMERIZING PULL THE DIRECTOR PETER WEIR HAS A GIFT FOR TRANSMITTING THE LINK BETWEEN NIGHTMARES AND REALITY HE SHOWED THIS GIFT MOST VIVIDLY IN HIS EARLIER FILMS GALLIPOLI AND THE YEAR OF LIVING DANGEROUSLY NOW HE AND CINEMATOGRAPHER ALLEN DAVIAU PORTRAY THE PLANE CRASH BOTH AS FRENZIED REALITY AND SLOWMOTION HALLUCINATION THE WAY HORRIBLE THINGS OFTEN APPEAR TO THE VICTIM MAX EMERGES FROM THE WRECKAGE SUPREMELY PLEASED WITH HIMSELF AND EXULTANT NOT THE LEAST SHAKEN BY THE EVENTS THAT AMONG OTHER THINGS DECAPITATED HIS PARTNER AND BEST FRIEND MR BRIDGES NEVER FLINCHES FROM FULLY REALIZING THE CRUEL AND SELFISH POTENTIAL OF THIS CHARACTER AND HIS INHUMAN CALM THE FILMMAKERS RESTRAIN THEMSELVES ADMIRABLY FROM OVEREXPLAINING THIS AND EVEN REIN IN THE PSYCHIATRIST THEY HAVE PLACED AMONG THE CHARACTERS MAX ISN'T MERELY BEATIFIC HE NO LONGER SUFFERS FROM ALLERGIES HE HAS NO PATIENCE FOR ORDINARY MORTALS AND THEIR PETTY WAYS THEIR MANNERS OR THEIR CASUAL SOCIALIZING HE LOOKS AT HIS BEAUTIFUL SENSITIVE WIFE AND ADORABLE SON AS THOUGH THEY ARE CREATURES FROM ANOTHER PLANET I'M PAST ALL THAT HE TELLS AN OLD GIRLFRIEND AS HE BITES INTO A SUCCULENT STRAWBERRY AN ACT THAT IN THE PAST WOULD HAVE MADE HIM DEATHLY ILL THE FILMMAKERS SHREWDLY EXAMINE THE CRASH FROM MANY PERSPECTIVES NOT ONLY THE SURVIVORS TRYING TO FORGET ABOUT IT BUT THE PSYCHIATRIST TRYING TO HELP THEM THE LAWYERS TRYING TO CASH IN AND THE FAMILIES TRYING TO UNDERSTAND THESE SMALLER ROLES TURN INTO FINE OPPORTUNITIES FOR INTERESTING PERFORMANCES JOHN TURTURRO GIVES A NICE SUBTLE READING OF THE PLANECRASH THERAPIST ISABELLA ROSSELLINI IS TERRIFIC AS MAX'S SMART AND BEAUTIFUL WIFE WHO HAS COMPASSION FOR HER HUSBAND BUT NOT ENDLESS AMOUNTS OF IT TOM HULCE PROVIDES SOME COMIC RELIEF AS THE AMBULANCECHASING LAWYER WHO SHARES MAX'S POSTCRASH EUPHORIA BUT FOR ENTIRELY DIFFERENT REASONS THE ORIGINAL SCREENPLAY FOR TWENTY BUCKS WAS WRITTEN ALMOST 60 YEARS AGO BY THE LATE ENDRE BOHEM A HUNGARIAN REFUGEE IN HOLLYWOOD WHO WROTE MANY FILMS BUT WHO IS BEST REMEMBERED FOR PRODUCING RAWHIDE ON TV AND MAKING CLINT EASTWOOD A STAR BUT HIS SCRIPT FOR TWENTY BUCKS WAS NEVER PRODUCED HIS SON LESLIE BECAME A ROCKANDROLL MUSICIAN THEN SETTLED DOWN TO WRITE SCREENPLAYS INCLUDING A REVISION OF HIS FATHER'S SCRIPT THAT HAS NOW BEEN PRODUCED AND RELEASED THIS O'HENRY TALE IS JUST THE RIGHT REALLIFE BACKDROP FOR TWENTY BUCKS IT'S A WONDERFULLY LIGHTHEARTED PICTURE ABOUT SERENDIPITY DIRECTED BY KEVA ROSENFELD A DOCUMENTARY FILMMAKER TRYING HIS HAND AT FEATURES THE STORY FOLLOWS A 20 BILL AS IT PASSES THROUGH THE HANDS OF MANY AMUSING CHARACTERS ENTANGLED IN LOVE DEATH AND CHICANERY MR ROSENFELD HANDLES THE BOHEMS' SPRIGHTLY SCRIPT WITH JUST THE RIGHT MIX OF JAUNTINESS AND DELICACY IT'S A LITTLE GEM VIDEO TIP FEARLESS AND TWENTY BUCKS DO HAVE SOMETHING IN COMMON THE ACTRESS LINDA HUNT IN TWENTY BUCKS SHE PLAYS A HOMELESS WOMAN WHO IS CERTAIN THAT THE 20 BILL IS HER DESTINY SHE DOESN'T APPEAR IN FEARLESS BUT SHE DID PLAY AN IMPORTANT PART IN MY FAVORITE PETER WEIR FILM THE YEAR OF LIVING DANGEROUSLY 9310280107 931028 PENTAGON CUTS ORDER FOR C17 PLANES TELLS MCDONNELL TO BOOST PERFORMANCE BY THOMAS E RICKS AND JEFF COLE STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE PENTAGON PLANS TO BUY ONLY ABOUT 40 C17 MILITARY CARGO AIRCRAFT FOR NOW AND WILL THEN CANCEL THE CONTROVERSIAL PROGRAM IF MCDONNELL DOUGLAS CORP DOESN'T IMPROVE ITS PERFORMANCE SEVERAL CONGRESSIONAL AND PENTAGON AIDES SAID THE 40 PLANES WOULD BE ONETHIRD OF THE 120 AIRCRAFT THE PENTAGON HAS BEEN PLANNING TO BUY FOR 40 BILLION THE C17 HAS BEEN ONE OF THE MOST TROUBLED PROGRAMS IN RECENT PENTAGON HISTORY BUILDING A 14YEARRECORD OF COST OVERRUNS PERFORMANCE SHORTFALLS AND TECHNICAL FLAWS CAPPED WHEN THE PLANE'S WINGS BUCKLED DURING A STRESS TEST LATE LAST YEAR IN ADDITION THE PENTAGON IS CONTEMPLATING MAKING A 400 MILLION PAYMENT TO MCDONNELL DOUGLAS IF THE COMPANY IN TURN AGREES NOT TO FILE MOST OF THE 16 BILLION IN CLAIMS IT HAD THREATENED TO SEEK AGAINST THE GOVERNMENT NEGOTIATIONS TO RESOLVE THE CLAIMS ARE EXPECTED TO BE CONCLUDED BY THE MIDDLE OF NEXT MONTH WHEN THE PENTAGON'S DEFENSE ACQUISITION BOARD WILL MEET TO COMPLETE PLANS FOR THE FUTURE OF THE PROGRAM ACCORDING TO A DEFENSE OFFICIAL FAMILIAR WITH THE SITUATION TO MAKE THE 400 MILLION PAYMENT MORE PALATABLE TO CONGRESSIONAL OPPONENTS OF THE C17 THE PENTAGON PLANS TO ATTACH SEVERAL STRINGS TO IT SUCH AS REQUIRING THAT IT BE USED TO MAKE MANUFACTURING IMPROVEMENTS AT THE COMPANY'S PLANT IN LONG BEACH CALIF FINALLY AIDES SAID THE GOVERNMENT IS LIKELY TO ACCEPT FOR THE MOST PART THE COMPANY'S CLAIM THAT THE WINGS OF THE C17 WHICH HAVE BUCKLED TWICE IN TESTS HAVE SUBSTANTIALLY MET THEIR CONTRACTUAL REQUIREMENTS THE CHANGES IN THE C17 PROGRAM ARE SIGNIFICANT NOT ONLY BECAUSE THEY ADDRESS THE PENTAGON'S SINGLE MOST NETTLESOME ACQUISITION PROBLEM BUT ALSO BECAUSE THEY PROVIDE SOME CONCRETE INDICATION OF HOW THE CLINTON ADMINISTRATION HOPES TO REFORM DEFENSE ACQUISITION MOST NOTABLY SAID ONE DEFENSE DEPARTMENT OFFICIAL THE PACKAGE BUILDS IN INCENTIVES TO REWARD THE COMPANY FOR IMPROVED PERFORMANCE AS WELL AS IMPOSING THE TRADITIONAL PENALTIES FOR FAILURE JOHN DEUTCH THE PENTAGON'S TOP ACQUISITION OFFICIAL TOLD MEMBERS OF CONGRESS IN SEVERAL CLOSED BRIEFINGS THIS WEEK THAT HE WANTS TO ADOPT A CARROTANDSTICK APPROACH TO THE C17 PROGRAM AIDES SAID THE CARROTS WOULD BE THE 400 MILLION PAYMENT AND A PROMISE TO EXTEND THE PROGRAM IF THE COMPANY'S MANUFACTURING PERFORMANCE IMPROVES THE STICK IS THE THREAT TO CANCEL THE PROGRAM AS SOON AS IT IS COSTEFFECTIVE TO DO SO MR DEUTCH SAID IT WOULDN'T BE ECONOMICAL TO CANCEL THE PROGRAM NOW BUT COSTEFFECTIVENESS WOULD BE REACHED BY PRODUCING ABOUT 40 AIRCRAFT MR DEUTCH TOLD MEMBERS OF THE SENATE AND HOUSE ARMED SERVICES COMMITTEES THIS WEEK ROUGHLY 20 AIRCRAFT ALREADY ARE IN PRODUCTION SO PRODUCING SIX A YEAR FOR THREE MORE YEARS WOULD PLACE THE TERMINATION POINT IN EARLY 1997 CONGRESSIONAL AIDES WERE QUICK TO POINT OUT THAT MR DEUTCH'S PROPOSED SCHEDULE WOULD PUT THE ULTIMATE DECISION AFTER THE 1996 PRESIDENTIAL AND CONGRESSIONAL ELECTIONS THEY NOTED THAT SINKING THE PROGRAM AND THE THOUSANDS OF MANUFACTURING JOBS IT SUPPORTS IN SOUTHERN CALIFORNIA WOULD BE FAR EASIER THEN THE SOUTHERN CALIFORNIA ECONOMY ALREADY HAS BEEN SOCKED BY DEFENSE CUTBACKS AND CAPTURING THE STATE IS BELIEVED TO BE CRUCIAL IF THE DEMOCRATS ARE TO HOLD ON TO THE WHITE HOUSE IN 1996 THE DEFENSE OFFICIAL CONCEDED THAT THE PENTAGON IS AWARE OF THE JOBS PROBLEM BUT DENIED THAT THE PRODUCTION SCHEDULE WAS DETERMINED BY POLITICS RATHER HE ARGUED THE SCHEDULE WILL BE DETERMINED BY HOW WELL MCDONNELL DOUGLAS MEETS A VARIETY OF PERFORMANCE GUIDEPOSTS THE PENTAGON PLANS TO ESTABLISH THE NUMBER OF PLANES PRODUCED COULD BE MORE THAN 40 HE SAID IT DEPENDS ON HOW THEY MCDONNELL DOUGLAS PERFORM THAT WILL DETERMINE THE MIX BETWEEN C17 AND SOME ALTERNATIVES WIDEBODY COMMERCIALS OR C5S AS REPORTED THE AIR FORCE HAS LOOKED INTO HEDGING THE C17 PROGRAM BY PURCHASING BOEING CO 747 FREIGHTERS AND OTHER BIG CARGO JETS CONGRESSIONAL STAFFERS DIFFERED OVER WHETHER CONGRESS WILL GO ALONG WITH MR DEUTCH'S PLAN MCDONNELL DOUGLAS HAS FEW FANS ON CAPITOL HILL BUT PRODEFENSE REPUBLICANS ARE SWAYED BY THE MILITARY'S ARGUMENT THAT STRATEGIC AIRLIFT IS BADLY NEEDED AND OBJECTIONS OF MANY DEMOCRATS WHO WOULD LIKE TO SEE THE DEFENSE BUDGET CUT ARE MUTED BY CONCERNS ABOUT JOBS REP JOE SKEEN R NM WHO TRACKS THE C17 FOR THE HOUSE DEFENSE APPROPRIATIONS SUBCOMMITTEE SAID HE EXPECTS CONGRESS TO APPROVE THE PLAN THE NUMBER OF AIRCRAFT KEEPS THEM IN BUSINESS BUT IT PUTS THE BURDEN ON MCDONNELL TO PERFORM HE SAID IT'S THE OPTIMUM PLAN SOME IN CONGRESS MAY ATTEMPT TO IMPOSE A CEILING ON THE PERPLANE COST OF THE C17 THE UNIT COST IS CURRENTLY ESTIMATED AT ABOUT 330 MILLION BUT THAT WILL RISE IF THE PRODUCTION RUN IS CURTAILED EVEN IF CONGRESS DOES APPROVE THE REVAMPED C17 PROGRAM MCDONNELL DOUGLAS COULD FACE PROBLEMS ELSEWHERE IN WASHINGTON THE ENFORCEMENT STAFF OF THE SECURITIES AND EXCHANGE COMMISSION IS STILL LOOKING INTO THE COMPANY'S FINANCIAL DISCLOSURES AND EXPECTS TO TAKE SOME ACTION BY YEAR END A CONGRESSIONAL AIDE SAID LAURA SINGER AN SEC ENFORCEMENT ATTORNEY INVOLVED IN THE INVESTIGATION DECLINED TO COMMENT AS DID A COMPANY EXECUTIVE 9310280106 931028 BUSINESS BRIEF GILLETTE CO SCRIPTO TOKAI SAYS US JURY RULES IN ITS FAVOR IN SUIT SCRIPTO TOKAI CORP SAID A FEDERAL JURY IN LOS ANGELES RULED IN ITS FAVOR IN A PATENT LAWSUIT WITH GILLETTE CO OVER ERASABLE INKS USED IN BALL POINT PENS IN A STATEMENT SCRIPTO TOKAI SAID GILLETTE HAD SUED FOR SEVERAL MILLION DOLLARS IN DAMAGES CLAIMING THAT SCRIPTO TOKAI HAD INFRINGED TWO PATENTS OWNED BY GILLETTE SCRIPTO TOKAI SAID THE VERDICT RESOLVES ALL OF GILLETTE'S CLAIMS AGAINST IT HOWEVER IT SAID ITS CLAIMS AGAINST GILLETTE HAVE YET TO BE DETERMINED SCRIPTO TOKAI SAID ANTITRUST AND UNFAIRCOMPETITION CLAIMS AGAINST GILLETTE ARE SCHEDULED TO BE TRIED BEFORE A SECOND JURY NEXT JUNE A GILLETTE SPOKESMAN SAID THE COMPANY WILL ASK THE COURT TO SET THE VERDICT ASIDE IF UNSUCCESSFUL GILLETTE PLANS TO APPEAL 9310280105 931028 MARKETING & MEDIA SEAGRAM BOOSTS TO 68 ITS STAKE IN TIME WARNER NEW YORK SEAGRAM CO BOOSTED ITS STAKE IN TIME WARNER INC TO 68 FROM 57 SPENDING 1944 MILLION IN THE OPEN MARKET TO BUY 46 MILLION SHARES OF THE ENTERTAINMENT CABLE AND PUBLISHING GIANT IN MAY SPIRITSMAKER SEAGRAM ANNOUNCED THAT IT ACQUIRED 57 OF TIME WARNER FOR 700 MILLION WITH PLANS TO INCREASE ITS STAKE TO 15 SINCE THE INVESTMENT WAS DISCLOSED IN MAY A FLURRY OF INTEREST IN ENTERTAINMENT AND CABLE PROPERTIES HAS DRIVEN UP THE VALUE OF SEAGRAM'S TIME WARNER STAKE BY 33 OR MORE THAN 200 MILLION SEAGRAM PAID AN AVERAGE PRICE OF 3324 FOR ITS FIRST 211 MILLION SHARES IT PAID AN AVERAGE 4425 A SHARE FOR ITS LATEST PURCHASE THE FIRST INVESTMENT BY SEAGRAM CAUGHT TIME WARNER OFF GUARD AND THE SECRETIVE BUYING CAST DOUBT ON SEAGRAM'S STATEMENTS THAT IT WAS A FRIENDLY AND PASSIVE INVESTMENT TIME WARNER DECLINED COMMENT BUT COMPANY EXECUTIVES SAID THEY WERE AWARE OF THE LATEST PURCHASE AND VIEW IT AS A SIGN OF CONFIDENCE IN TIME WARNER SEAGRAM DECLINED TO COMMENT BUT PEOPLE CLOSE TO THE COMPANY SAID THE BUYING WAS IN LINE WITH ITS EARLIERANNOUNCED INTENTIONS 9310280104 931028 CREDIT MARKETS TREASURYS DECLINE FOLLOWING NEW INDICATIONS THAT MANUFACTURING SECTOR MAY BE IMPROVING BY THOMAS D LAURICELLA AND THOMAS T VOGEL JR SPECIAL TO THE WALL STREET JOURNAL NEW YORK PRICES OF TREASURY SECURITIES ENDED LOWER YESTERDAY IN VOLATILE TRADING FOLLOWING FRESH EVIDENCE THAT ACTIVITY IN THE MANUFACTURING SECTOR MAY BE PICKING UP STEAM IN THE MIDST OF THE SOMETIMESCONFUSING SESSION DEALERS BID AGGRESSIVELY AT THE TREASURY'S AUCTION OF 11 BILLION IN FIVEYEAR NOTES BUT BY THE END OF TRADING THOSE STILL HOLDING ON TO THE NEW SECURITIES WERE FACING LOSSES THE BENCHMARK 30YEAR TREASURY BOND DROPPED 1/4 POINT OR 250 FOR A BOND WITH 1000 FACE VALUE TO 103 11/32 TO YIELD 6 UP FR0M 598 ON TUESDAY YESTERDAY'S DECLINES MARKED THE FOURTH DAY OF LOSSES IN THE PAST FIVE TRADING SESSIONS AND LEFT TRADERS ON EDGE I THINK PEOPLE ARE A LITTLE SCARED SAID RON CONNORS MANAGER OF GOVERNMENTSECURITIES TRADING AT BEAR STEARNS & CO THE MARKET HAS TAKEN ON A DEFENSIVE TONE THE MARKET BEGAN TO FOUNDER EARLY IN THE SESSION IN RESPONSE TO THE COMMERCE DEPARTMENT'S REPORT SHOWING NEW ORDERS FOR DURABLE GOODS ROSE 07 IN SEPTEMBER THE INCREASE WAS A BIT LARGER THAN EXPECTED AND CAME ON THE HEELS OF A SOLID 26 GAIN IN AUGUST IN ADDITION ANALYSTS SAID THE SEPTEMBER GAIN WAS ACTUALLY STRONGER THAN IT LOOKED ON THE SURFACE BECAUSE THE OVERALL INCREASE WAS DEPRESSED BY A DECLINE IN THE VOLATILE TRANSPORTATION COMPONENT BEHIND THE HEADLINE THERE WAS MORE STRENGTH AND NOT LESS STRENGTH SAID ALAN LEVENSON MONEYMARKET ECONOMIST AT UBS SECURITIES DESPITE THE GLOOMINESS YESTERDAY SOME ON WALL STREET STILL SEE OPPORTUNITY IN THE TREASURY BOND MARKET IN THE CASE OF SALOMON BROTHERS OPPORTUNITY COMES IN THE FORM OF AN UNUSUAL 10 BILLION TENDER OFFER THAT ONE PERSON FAMILIAR WITH THE OFFER REFERRED TO AS A HUGE ARBITRAGE YESTERDAY SALOMON OFFERED TO BUY BACK FROM INVESTORS ABOUT 10 BILLION OF 30YEAR TREASURY SECURITIES ISSUED IN 1984 AND SUBSEQUENTLY STRIPPED BY WALL STREET FIRMS FOR RESALE TO INVESTORS THESE SECURITIES CARRY COUPONS OF 12 1/2 AND 13 1/4 ACCORDING TO THE ANNOUNCEMENT SALOMON WILL EITHER PAY ENOUGH CASH FOR EACH TENDERED SECURITY TO RESULT IN A YIELD TO THE INVESTOR EQUAL TO THE YIELD OF A GOVERNMENTISSUED STRIPPED SECURITY MATURING ON THE SAME DATE AS THE TENDERED SECURITY OR REPLACE THE OLD STRIP SECURITY WITH A NEW ONE OF EQUAL FACE AMOUNT AND MATURING THE SAME DATE AS THE SECURITY ACCEPTED FOR PURCHASE WHEN A 30YEAR BOND IS STRIPPED ITS COUPON AND PRINCIPAL PAYMENTS ARE SEPARATED INTO INDIVIDUAL SECURITIES THIS ENABLES AN INVESTOR TO BUY FOR EXAMPLE A SECURITY BACKED BY A SINGLE COUPON PAYMENT AT A SET DATE IN THE FUTURE BEFORE THE MID1980S WHEN THE TREASURY BEGAN SELLING STRIPPED SECURITIES ON ITS OWN FIRMS LIKE SALOMON SOLD BILLIONS OF THESE SECURITIES TO THEIR CLIENTS ACCORDING TO MARWAN MARSHI OF SALOMON'S LIABILITY MANAGEMENT GROUP ACCORDING TO THE ANNOUNCEMENT SALOMON PLANS TO RECONSTRUCT THE US TREASURY BONDS UNDERLYING SUCH SECURITIES SALOMON WOULDN'T COMMENT FOR THE RECORD ON WHAT IT PLANNED TO DO WITH THE NEWLY RECONSTITUTED BONDS BUT WITH 30YEAR BOND YIELDS HOVERING NEAR 6 IT'S EASY TO SEE THE ATTRACTION OF THESE BONDS CARRYING YIELDS NEARLY DOUBLE THAT ACCORDING TO A PERSON FAMILIAR WITH TERMS OF THE TENDER OFFER SALOMON IS LOOKING TO MAKE MONEY BY EXPLOITING AN ANOMALY BETWEEN THE CURRENT PRICE OF THE OLD STRIPPED SECURITIES THE EXPECTED PRICE OF THE NEW BONDS AND THE CURRENT PRICE OF NEW STRIPPED SECURITIES MEANWHILE DEMAND FOR NEW JUNKBOND ISSUES REMAINED STRONG EVEN AS TOTAL ISSUANCE SO FAR THIS YEAR HAS SURPASSED THE RECORD TOTAL FOR ALL OF LAST YEAR THREE JUNKBOND ISSUES TOTALING MORE THAN 350 MILLION WERE SNAPPED UP BY INVESTORS YESTERDAY ADDING TO THE WEIGHT ON US TREASURY BOND PRICES WERE COMMENTS FROM ROBERT MCTEER PRESIDENT OF THE FEDERAL RESERVE BANK OF DALLAS DURING A SPEECH IN HOUSTON MR MCTEER SAID THAT WHILE MONETARY POLICY CURRENTLY IS APPROPRIATELY ACCOMMODATING THE FED WOULD ACT TO PREEMPTIVELY RAISE INTEREST RATES BEFORE INFLATION BECAME A PROBLEM TRADERS INTERPRETED MR MCTEER'S REMARK TO MEAN THAT A FED TIGHTENING COULD COME SOONER THAN EXPECTED THE DOUBLEWHAMMY OF THE ECONOMIC NEWS AND FED COMMENTS CAME AS DEALERS PREPARED TO BID AT THE TREASURY'S FIVEYEAR NOTE AUCTION THROUGHOUT THE MORNING TRADERS EXPRESSED CAUTION ABOUT THE AUCTION SAYING THAT INSTITUTIONAL INVESTORS DID NOT HAVE MUCH INTEREST IN THE OFFERING IN THE END WALL STREET DEALERSHIPS STILL BID VERY AGGRESSIVELY AT THE AUCTION BUT NOT ON BEHALF OF INVESTORS RATHER THOSE TRADERS WERE BIDDING TO COVER SHORT POSITIONS IN WHICH THEY HAD SOLD BORROWED SECURITIES IN HOPES OF BUYING THEM BACK LATER AT LOWER LEVELS FOR A PROFIT THE AGGRESSIVE BIDDING AT THE AUCTION BACKFIRED ON TRADERS HOWEVER MANY OF THEM TENDERED BIDS WELL BELOW THE GOING MARKET YIELD IN ORDER TO ENSURE THAT THEY RECEIVED FIVEYEAR NOTES TO CLOSE OUT THEIR POSITIONS BUT BECAUSE SO MANY BID BELOW THE YIELD PREVAILING SHORTLY BEFORE THE AUCTION THE OFFERING WAS AWARDED AT A YIELD LOWER THAN MOST HAD WANTED THE TREASURY SOLD THE 11 BILLION OF FIVEYEAR NOTES AT A YIELD OF 481 MOST TRADERS HAD BEEN BETTING THAT THE FIVEYEAR NOTES WOULD BE AWARDED AT A YIELD OF 483 OR AT WORST 482 WITH MOST INVESTORS NOT INTERESTED IN BUYING THE NEW FIVEYEAR NOTES TRADERS QUICKLY FOUND THEMSELVES FACING LOSSES ON THE ISSUE AS A DEFENSIVE MOVE THEY BEGAN FRANTICALLY SELLING OTHER SHORT AND INTERMEDIATETERM ISSUES AND BY THE END OF TRADING THE NEW FIVEYEAR NOTE WAS IN THE RED FOR THOSE WHO BOUGHT IT AT THE AUCTION YIELDING 484 IT WAS A STREET EVENT SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS THERE WERE NO FIRM HANDS TO HOLD ON TO THE ISSUE ADDING TO THE MARKET'S JITTERS YESTERDAY WERE WIDESPREAD FEARS THAT TODAY'S THIRDQUARTER GROSS DOMESTIC PRODUCT REPORT WILL SHOW THAT THE ECONOMY HAS BEEN GROWING FASTER THAN WAS RECENTLY THOUGHT THE AVERAGE FORECAST AMONG ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT CALLS FOR GDP TO POST A 26 RATE OF INCREASE FOR THE QUARTER BUT MANY TRADERS SAID THEY ARE BRACING FOR A STONGER NUMBER THE MARKET'S PERFORMANCE OVER THE PAST FEW WEEKS HAS RAISED QUESTIONS ABOUT ITS ABILITY TO EXTEND THE POWERFUL RALLY OF THE PAST YEAR BUT MANY PORTFOLIO MANAGERS WARNED AGAINST OVERREACTING THEY SAID THE RISK OF AN UPSWING IN INFLATION AND THUS SHARPLY HIGHER YIELDS IS REMOTE STEVE NOTHERN A PORTFOLIO MANAGER AT MASSACHUSETTS FINANCIAL SERVICES CO SAID THE FED'S AGGRESSIVE STANCE IN BATTLING INFLATION WILL CONTINUE TO FAVOR THE BOND MARKET WE'VE HAD CONSISTENT RESPONSIBLE MONETARY POLICY AND WE RUN THE RISK OF UNDERESTIMATING HOW THAT WILL PAY OFF IN TERMS OF MODERATE INFLATION HE SAID MONEY MANAGERS SAID IT IS MORE LIKELY THAT THE BOND MARKET WILL CONTINUE TO BOUNCE BACK AND FORTH IN BROAD RANGES THOUGH THERE DO SEEM TO BE FEWER BULLS IN THE BOND MARKET THAN JUST A FEW WEEKS AGO MR CONNORS OF BEAR STEARNS SAID HE HAS NOTICED TRADERS AND INVESTORS PULLING IN THEIR HORNS PEOPLE HAVE ENOUGH PROFITS BUILT UP AND AT THIS TIME OF YEAR THE STREET AS WELL AS THE INVESTMENT COMMUNITY GOES INTO A SHELL HE SAID HERE ARE THE DETAILS OF THE FIVEYEAR NOTE AUCTION ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED NOV 1 AND MATURE OCT 31 1998 THE JUNKBOND NEWISSUE MARKET CONTINUES TO BARREL ALONG AS NEW ISSUES ARE INCREASED IN SIZE PRICED AT OR BELOW THE LOW END OF THEIR EXPECTED YIELDS AND TRADE UP IN THE AFTERMARKET ALL OF THOSE DEVELOPMENTS TOOK PLACE YESTERDAY AS JUNKBOND OFFERINGS WERE BROUGHT BY AIM MANAGEMENT GROUP NEWCITY COMMUNICATIONS INC AND OMI CORP JUNKBOND ISSUANCE SO FAR THIS YEAR HAS PASSED LAST YEAR'S RECORD TOTAL OF 428 BILLION ACCORDING TO SECURITIES DATA CO THROUGH OCT 26 THERE WERE 494 BILLION OF JUNK BONDS ISSUED THIS YEAR COMPARED WITH 368 BILLION IN THE SAME PERIOD LAST YEAR AND THERE IS A 95 BILLION FORWARD CALENDAR OF NEW JUNK ISSUES ONE UNDERWRITING OFFICIAL ESTIMATED YESTERDAY AIM MANAGEMENT GROUP ISSUED 110 MILLION OF 10YEAR SENIOR SECURED NOTES PRICED AT PAR TO YIELD 9 THE COMPANY INCREASED THE SIZE OF THE DEAL BY 10 MILLION OMI CORP A NEW YORK SHIPPING CONCERN BOOSTED THE SIZE OF ITS OFFERING YESTERDAY BY 20 MILLION TO 170 MILLION OF SENIOR NOTES A GOLDMAN SACHS OFFICIAL SAID THE DEAL WAS PRICED AT PAR TO YIELD 1025 OMI'S OFFERING HAD BEEN DELAYED TWO WEEKS BECAUSE OF ONE OF ITS SHIPS SANK AND THAT REQUIRED IT TO AMEND A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POORS CORP NEWCITY'S 75 MILLION OFFERING OF 10YEAR SENIOR SUBORDINATED NOTES WAS PRICED AT PAR TO YIELD 11375 THE BONDS ISSUED BY NEWCITY COMMUNICATIONS AND AIM TRADED UP 1/2 POINT WHILE OMI BONDS HAVE NOT BEEN FREED TO TRADE A SYNDICATE OFFICIAL SAID ACTIVITY IN THE SECONDARY JUNKBOND MARKET REMAINED SLUGGISH AS INVESTORS FOCUSED ON THE NEW ISSUES PRICES WERE UP SLIGHTLY ACROSS THE BOARD WITH MOST NEW ISSUES UP BY 1/2 TO ONE POINT FOR EXAMPLE ECKERD CORP'S SENIOR SUBORDINATED NOTES PRICED ON TUESDAY AT PAR TO YIELD 925 ROSE ONE POINT OR 10 FOR A BOND WITH 1000 FACE VALUE TO 101 FOR A 906 YIELD IN 2001 WHEN THE COMPANY CAN CALL THE BONDS AT PAR FOR THE FIRST TIME ONE TRADER SAID MUNICIPAL BONDS FELL 1/8 TO 1/2 POINT HAVING RESUMED THEIR DECLINE AFTER TUESDAY'S CONSOLIDATION THE CURRENT MUNI SLUMP IS BOOSTING YIELDS SUBSTANTIALLY LAST FRIDAY THE LOS ANGELES BONDS YIELDED 534 AND THE VALDEZ BONDS YIELDED 552 IN THE CASE OF MUNIS THERE'S A SHIFT IN PSYCHOLOGY SAYS STANLEY CIEMNIECKI MANAGER OF NATIONAL UNDERWRITING AT LEHMAN BROTHERS WHILE THERE USED TO BE BUYING ON DROPS WHEN MUNIS WERE CLIMBING THERE ARE NO SUCH PURCHASES RIGHT NOW HE SAYS MR CIEMNIECKI ATTRIBUTES THE CHANGE IN MOOD TO THE RECENT GLIMMERS OF ECONOMIC STRENGTH AND CONCERNS ABOUT CONTINUED HEAVY ISSUANCE OF TAXEXEMPT SECURITIES ONE BIT OF GOOD NEWS FOR THE MUNI MARKET IS THAT SO FAR THERE HAS BEEN PRETTY SOLID DEMAND FOR MANY OF THE NEW ISSUES MR CIEMNIECKI NOTES IN THE PRIMARY MARKET THIS SESSION THE HAWAII DEPARTMENT OF BUDGET & FINANCE'S 100 MILLION SPECIALPURPOSE REVENUE BONDS FOR THE HAWAIIAN ELECTRIC CO AND SUBSIDIARY PROJECTS WERE PRICED BY A SMITH BARNEY SHEARSON GROUP THE BONDS WHICH ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX HAVE A 545 COUPON AND ARE PRICED TO YIELD 559 ON NOV 1 2023 THIS ISSUE IS INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRIES TRIPLEA RATINGS FROM MOODY'S AND S&P MORTGAGE SECURITIES ENDED NARROWLY MIXED BETTERING A US TREASURY MARKET BESET BY AFTERNOON LOSSES MOST SECURITIES FINISHED NEARLY UNCHANGED BUT THAT PRICE PERFORMANCE MAY OBSCURE A PLEASANT CHANGE IN THE MORTGAGE MARKET OVER RECENT SESSIONS THE RETURN OF INSTITUTIONAL CUSTOMERS WHILE MOST MORTGAGE DEALERS STILL REPORT LITTLE CUSTOMER ACTIVITY MONEY FROM MUTUAL FUNDS AND OTHER INSTITUTIONAL ACCOUNTS HAS MOVED INTO THE MARKET SOME OF THOSE BUYERS ARE RETREATING FROM THEIR POSITIONS IN US TREASURYS BECAUSE THEY'RE WORRIED THAT THE GOVERNMENT MARKET IS DUE FOR A CORRECTION AMONG PRICES OF 6 COUPONS FOR NOVEMBER DELIVERY GINNIE MAES WERE OFF 3/32 NEAR THE CLOSE FREDDIE MAC GOLD ISSUES AND FANNIE MAES WERE BOTH OFF 1/8 POINT AT 98 15/32 AND 98 1/4 RESPECTIVELY AND SOME HIGHER COUPONS SUCH AS GINNIE MAE 9 SECURITIES WERE UP 1/32 NEAR THE CLOSE INTERESTONLY STRIPS GAVE UP SOME OF THE GROUND THEY HAD GAINED IN THE PREVIOUS FEW SESSIONS TRADERS REPORTED LOSSES OF 1/4 OR MORE NEAR THE CLOSE STRIPS TRUST 240 FOR EXAMPLE WAS QUOTED AT 2624 LATE IN TRADE HERE DOWN FROM 2650 LATE TUESDAY TRADERS SAID THE SLIGHT DROP IN IOS WAS LIKELY JUST A CORRECTION SERVING TO CHECK THE RETURN TO HEALTH OF A MARKET SECTOR THAT HAS A HABIT OF GETTING HURT IN THE PRIMARY MARKET SIX NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS WERE ANNOUNCED FOR A TOTAL OF 19 BILLION IN NEW BONDS JACQUELINE DOHERTY CONTRIBUTED TO THIS ARTICLE 9310280103 931028 TENNECO UNIT TO BUILD GAS LINE HOUSTON TENNECO GAS GATHERING CO A UNIT OF TENNECO GAS WILL BUILD A 30MILE NATURAL GAS GATHERING SYSTEM TO CONNECT RECENT DISCOVERIES OFF THE COAST OF ALABAMA WITH ONSHORE INTERSTATE PIPELINES BOTH CONCERNS ARE UNITS OF TENNECO INC THE COST OF THE PROJECT HAS NOT BEEN DISCLOSED THE LINE WILL HAVE THE CAPACITY TO TRANSPORT MORE THAN 200 MILLION CUBIC FEET OF GAS A DAY 9310280102 931028 WHO'S NEWS BIOSOURCE INTERNATIONAL INC BIOSOURCE INTERNATIONAL INC CAMARILLO CALIF LEONARD M HENDRICKSON 46 YEARS OLD WAS ELECTED A DIRECTOR OF THIS MAKER OF TEST KITS FOR BIOMEDICAL RESEARCH INCREASING THE BOARD TO FOUR MR HENDRICKSON IS PRESIDENT OF ISOTOPE PRODUCTS LABORATORIES INC 9310280101 931028 NEXT THING YOU KNOW WHEATIES WILL PUT BALLERINAS ON ITS BOXES BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL MANLY MEN DRIVE WIMPY CARS AT LEAST THAT'S THE MESSAGE OF A RECENT HYUNDAI PITCH THAT STANDS DETROIT'S TRADITIONAL AD APPROACH ON ITS END FOR YEARS DETROIT HAS USED SIZE AND ENGINE POWER TO HAWK CARS A CLASSIC WAS THE 1956 BUICK AD THAT CALLED THE CAR JUST ONE BIG THRILL FROM END TO END AND THEN THERE WAS THIS PITCH FOR THE POWERFUL 1965 CORVETTE 396CUBIC INCHES THAT IS WE'RE READY IF YOU ARE BUT THIS IS THE '90S AND ONE OF HYUNDAI'S LATEST TELEVISION SPOTS BEGINS WITH TWO WELLDRESSED WOMEN EYEING A MAN IN A LAMBORGHINI AND THEN IN THE APTLY NAMED FERRARI TESTAROSSA MUST BE OVERCOMPENSATING FOR A SHORTCOMING SAYS ONE WOMAN HE OBVIOUSLY HAS FEELINGS OF INADEQUACY SAYS THE OTHER THEN COMES THE OWNER OF THE SMALL INEXPENSIVE HYUNDAI ELANTRA SEDAN I WONDER WHAT HE'S GOT UNDER THE HOOD SAYS ONE OF THE WOMEN ADMIRINGLY LEST YOU MISS THE POINT THE AD INCLUDES THE HEADLINE SOLID WELLBUILT AND LONGLASTING ACTUALLY WE'RE TALKING ABOUT THE CAR THE AD CAMPAIGN DEVELOPED BY BACKER SPIELVOGEL BATES INC'S IRVINE CALIF OFFICE IS DESIGNED TO MAKE MEN WHO BUY HYUNDAIS FEEL WELL HUNKY SAYS JIM JOLLIFFE THE AUTHOR OF THE AD AND AN ACCOMPANYING SERIES OF TONGUEINCHEEK HYUNDAI PITCHES ONE OF THE SPOTS SHOWS A MAN AWKWARDLY CONFESSING TO A SUPPORT GROUP THAT HE IS A HYUNDAI OWNER THE LAST THING YOU EVER WANT TO ADMIT IS THAT YOU DRIVE A HYUNDAI SAYS MR JOLLIFFE SO WE THOUGHT ANYTHING TO MAKE THESE PEOPLE FEEL BETTER SOME POOR SCHLUB WHO ONLY HAS A COUPLE OF HUNDRED DOLLARS A MONTH TO SPEND ON A CAR PAYMENT WHAT BETTER WAY TO MAKE HIM SMILE ALTHOUGH SOME WOMEN MAY TAKE EXCEPTION TO THE PORTRAYAL OF SUCCESSFUL PROFESSIONALS DISCUSSING WHICH MAN OR CAR IS MORE MACHO THE AD CAMPAIGN CAN HARDLY FAIL TO IMPROVE HYUNDAI'S SITUATION THE KOREAN MOTOR COMPANY'S US SALES PEAKED MUCH TOO QUICKLY AFTER ITS ENTRY IN THE US MARKET IN 1987 SOON AFTER ITS US DEBUT HYUNDAI SOLD MORE THAN A QUARTER OF A MILLION CARS LAST YEAR SALES BARELY TOPPED 100000 SO MAYBE THE AD CAMPAIGN IS JUST WHAT HYUNDAI NEEDS IT HAS ALREADY RAISED MORALE THROUGHOUT THE BSB WEST OFFICE PARTICULARLY AMONG THE MALE STAFF MEMBERS SAYS MR JOLLIFFE WE ALL HAVE COMPANY HYUNDAIS AND WE FEEL BETTER 9310280100 931028 FORMER STATE OFFICIAL GETS PRISON SENTENCE IN NEW MEDICO FRAUD BOSTON A FORMER MEMBER OF A MASSACHUSETTS HEALTHCARE COMMISSION WAS SENTENCED TO 29 MONTHS IN PRISON AFTER PLEADING GUILTY IN A 240000 MEDICARE FRAUD INVOLVING NOWDEFUNCT NEW MEDICO ASSOCIATES INC RALPH RIZZO 27 YEARS OLD OF EAST BOSTON MASS WAS THE FOURTH DEFENDANT INVOLVED IN THE SCHEME THE STATE ATTORNEY GENERAL SAID THREE OTHERS ALSO HAVE PLEADED GUILTY AND RECEIVED PRISON SENTENCES IN THE CASE INCLUDING A FORMER NEW MEDICO ACCOUNTANT OFFICIALS SAID THE FORMER ACCOUNTANT STEPHEN A BASILE 31 ALSO OF EAST BOSTON RECEIVED FOUR YEARS IN PRISON THE EMBEZZLEMENT SCHEME IS ALLEGED TO HAVE TAKEN PLACE BETWEEN JULY 1991 AND AUGUST 1992 NEW MEDICO WHICH ONCE HAD 50 HEADTRAUMA AND LONGTERMCARE FACILITIES OPERATING NATIONWIDE HAS CEASED TO OPERATE THE ATTORNEY GENERAL SAID AND HAS SOLD ITS FACILITIES TO OTHER HEALTHCARE COMPANIES 9310280099 931028 WEATHERFORD STOCK REDEMPTION HOUSTON WEATHERFORD INTERNATIONAL INC SAID IT WILL REDEEM ALL SHARES OF ITS 2625 CONVERTIBLE EXCHANGEABLE CUMULATIVE PREFERRED STOCK ON NOV 30 AT A REDEMPTION PRICE OF 25263 A SHARE HOLDERS OF THE PREFERRED STOCK MAY INSTEAD OF RECEIVING THE REDEMPTION PRICE CONVERT EACH SHARE OF PREFERRED INTO 272 SHARES OF WEATHERFORD'S COMMON STOCK WEATHERFORD IS A DIVERSIFIED ENERGY AND MANUFACTURING COMPANY 9310280098 931028 DUPONT TO PAY 32 MILLION IN FLORIDA BENLATE CASE WAUCHULA FLA A STATE JURY HERE DECIDED THAT DUPONT CO SHOULD PAY 32 MILLION TO NURSERY OWNERS WHO SAID THE COMPANY'S BENLATE FUNGICIDE DAMAGED THEIR PLANTS THE AWARD IS SUBSTANTIALLY LESS THAN THE 28 MILLION IN DAMAGES THE PLAINTIFFS SOUGHT AND IS EQUAL TO THAT WHICH WE OFFERED TO SETTLE THE CASE BEFORE IT WENT TO TRIAL THE CHEMICAL MAKER SAID THE COMPANY NEVERTHELESS SAID IT IS DISAPPOINTED AND WILL APPEAL DUPONT FACES HUNDREDS OF SUITS FROM FARMERS AND NURSERY OWNERS AROUND THE NATION WHO ALLEGE BENLATE DAMAGED THEIR CROPS THE WILMINGTON DEL COMPANY WITHDREW THE PRODUCT FROM THE MARKET BUT CONTENDS THAT TESTS HAVE PROVEN IT DOESN'T CAUSE DAMAGE IN THE CASES THAT HAVE GONE TO TRIAL DUPONT HAS HAD A MIXED RECORD IN ONE FEDERAL CASE THE PLAINTIFFS SETTLED WHILE THE JURY WAS DELIBERATING IN FLORIDA LAST MONTH A STATE COURT FOUND THE COMPANY LIABLE FOR 3 MILLION IN DAMAGES TO AN ORCHID GROWER AN ARKANSAS JURY FOUND THE COMPANY LIABLE FOR 107 MILLION IN AN EARLIER CASE BUT DUPONT RECENTLY WON A TEXAS TRIAL AND HAS GOTTEN SOME COMPLAINTS THROWN OUT 9310280097 931028 WHO'S NEWS COMPUCOM NAMES ANDERSON PRESIDENT AND CHIEF EXECUTIVE DALLAS COMPUCOM SYSTEMS INC SAID ED ANDERSON WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER JAN 1 SUCCEEDING AVERY MORE MR ANDERSON THE 46YEAROLD FORMER PRESIDENT OF COMPUTERLAND CORP'S DOMESTIC OPERATIONS JOINED THE COMPUTER RESELLER IN AUGUST AS CHIEF OPERATING OFFICER SUCCESSION PLANS WERE PUT IN PLACE AT THAT TIME MR MORE 38 SAID IN A CONFERENCE CALL WITH REPORTERS MR MORE WHO REMAINS A COMPUCOM DIRECTOR SAID HE HAS FORMED EUREKA VENTURES A VENTURECAPITAL AND MERCHANT BANKING CONCERN AS ITS FIRST ACTION MR MORE SAID EUREKA ENTERED INTO A LETTER OF INTENT TO ACQUIRE A 50 STAKE IN PC PARTS EXPRESS FROM COMPUCOM ALONG WITH THE COMPANY'S NETWORKTRAINING DIVISION PC PARTS EXPRESS IS A COMPUTERPARTS DISTRIBUTION COMPANY WITH ABOUT 25 MILLION IN SALES ANNUALLY INDUSTRY EXPERTS SAID MR MORE LEAVES THE COMPANY IN GOOD SHAPE THROUGH THE FIRST NINE MONTHS OF 1993 COMPUCOM REPORTED NET INCOME OF 73 MILLION OR 22 CENTS A SHARE ON REVENUE OF 6971 MILLION UP FROM YEAREARLIER NET OF 43 MILLION OR 14 CENTS A SHARE ON REVENUE OF 3082 MILLION IF ANYTHING ONE INDUSTRY FOLLOWER SAID THE HIGHLY REGARDED MR ANDERSON COULD HELP RAISE THE COMPANY'S LOW PROFILE ON WALL STREET COMPUCOM HAS HAD DIFFICULTY GAINING A FOLLOWING AMONG ANALYSTS BECAUSE SO MUCH OF ITS STOCK 70 IS HELD BY SAFEGUARD SCIENTIFICS INC WAYNE PA IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY COMPUCOM STOCK ROSE 125 CENTS OR 3 TO CLOSE AT 425 A SHARE 9310280096 931028 REVIEW & OUTLOOK EDITORIAL HANDCUFFING REFORM THERE IS NO ELOQUENCE LIKE THAT OF OPPONENTS OF SCHOOL VOUCHERS AND CHOICE THEY RECALL IN REVERENTIAL TONES THE ORIGINAL PREMISE OF PUBLIC EDUCATION AND HOW 50 YEARS AGO DEDICATED TEACHERS TUTORED OUR COUNTRY'S FUTURE LEADERS AND NOBEL LAUREATES THESE PEOPLE SHOULD TRY A VISIT TO THE REAL WORLD THAT DEDICATED TEACHER NOW BELONGS TO UNIONS THAT ARE BEGINNING TO MAKE THE TEAMSTERS SEEM TAME THE INNERCITY PUBLIC SCHOOL SYSTEMS THEMSELVES ARE MOSTLY UNTUTORED CHAOS ASK HILDA HIDALGO LAST WEEK MS HIDALGO ASSISTANT COMMISSIONER OF EDUCATION FOR NEW JERSEY MADE AN UNANNOUNCED INSPECTION OF A GRADE SCHOOL IN NEWARK SITE OF SOME OF THE NATION'S WORST SCHOOLS AFTER A HALFHOUR OF TOURING SHE AND THREE JOURNALISTS WERE CONFRONTED BY SCHOOL OFFICIALS AND NEWARK POLICE AND ORDERED TO LEAVE SHE REFUSED AND THE POLICE PULLED THE 65YEAROLD FORMER NEWARK SCHOOL BOARD MEMBER DOWN A STAIRWAY IN HANDCUFFS SHE SUFFERED A HAIRLINE WRIST FRACTURE WHEN THE JOURNALISTS TOOK PICTURES OF HER ARREST FROM BEYOND SCHOOL PROPERTY THEY WERE ARRESTED AND CHARGED WITH TRESPASSING MEANWHILE 20 MILES AWAY IN BROOKLYN NY SOME STUDENTS HAVE BEEN SHUT OUT OF THEIR SCHOOLS BECAUSE OF BOTCHED ASBESTOS CLEANUPS THE LOCAL BOARD TOLD PS 156 PARENTS THEIR KIDS WOULD BE BUSED TO ANOTHER SCHOOL THERE THE NEW ARRIVALS WERE HIT WITH ROCKS AND HARASSED SO PARENTS TOOK OVER THE ASBESTOSFREE FIRST FLOOR OF PS 156 AND SET UP THEIR OWN SCHOOL TAUGHT BY LOCAL COLLEGE STUDENTS PARENTS VOW TO CONTINUE THEIR OCCUPATION UNTIL A NEIGHBORHOOD SCHOOL OPENS SO IT GOES IN THE CITIES WHERE ANGRY PARENTS MUST CONTEND WITH THE FANATICAL RESISTANCE OF BUREAUCRATS TO ANYONE WHO QUESTIONS THEIR POOR MANAGEMENT OF SCHOOLS IN NEWARK WHERE MS HIDALGO WAS ROUGHED UP THE BATTLE IS OVER WHETHER THE STATE SHOULD SEIZE THE 48000STUDENT SYSTEM AND APPOINT AN OUTSIDE ADMINISTRATOR THE STATE ALREADY HAS TAKEN OVER SCHOOLS IN JERSEY CITY AND PATERSON MS HIDALGO TELLS US THE NEWARK SCHOOLS ARE JUST AS BAD AND RUN BY PEOPLE WHO JUST DON'T CARE MS HIDALGO SAYS TEACHER UNION MEMBERS IN NEWARK TRAIL INSPECTORS AND TELL COLLEAGUES NOT TO SHOW UP FOR INTERVIEWS NEWARK'S HIGH SCHOOLS SPEND ABOUT 10700 PER STUDENT PER YEAR MORE THAN THE STATE'S BETTER SUBURBAN PUBLIC SCHOOLS BUT ONLY A QUARTER OF THE STUDENTS PASS HIGH SCHOOL PROFICIENCY TESTS AND MORE THAN HALF FAIL TO GRADUATE FOR THE MONEY WE ARE SPENDING WE COULD SEND KIDS TO HARVARD SAYS NEWARK MAYOR SHARPE JAMES HE CALLS MS HIDALGO'S ARREST AN UNFORTUNATE AND REGRETTABLE INCIDENT THAT EMBARRASSED HIM ROBERT BRAUN OF THE NEWARK STARLEDGER WHO WAS ARRESTED WITH MS HIDALGO SAYS THAT IN THE 27 YEARS HE HAS COVERED NEWARK'S SCHOOLS THEIR BUDGET HAS GROWN FROM 53 MILLION TO 540 MILLION NOTHING HAS GOTTEN BETTER HE TOLD US THERE'S A SYSTEMIC FAILURE THAT REQUIRES DRAMATIC CHANGE BUT THE AMERICAN FEDERATION OF TEACHERS UNION LOCAL RESISTS ITS HEFTY DUES ON TEACHERS COLLECTED FROM TAXPAYER FUNDED SALARIES ARE USED TO DOMINATE SCHOOL BOARD ELECTIONS MR BRAUN SAYS THAT WHEN HE VISITED ONE NEWARK SCHOOL A UNION REP BLOCKED AND THEN SHOVED HIS PHOTOGRAPHER BOB WOODSON A BLACK FORMER SOCIAL WORKER WHO NOW ESPOUSES EMPOWERMENT IS RAISING MONEY FOR CHADD SCIENCE ACADEMY A REMARKABLE PRIVATE SCHOOL IN NEWARK BUT HE RECOGNIZES THAT THE REAL GOAL IS TO REFORM THE SHATTERED PUBLIC SCHOOLS THEIR DROPOUTS ARE OFTEN THE LAWBREAKERS OF TOMORROW HE SAYS BEYOND THAT THE WASTE OF RESOURCES IS INCREDIBLE INDEED 76 OF NEWARK'S SCHOOL BUDGET IS PAID BY STATE TAXPAYERS ANOTHER 4 COMES FROM WASHINGTON REFORMERS SUCH AS MR WOODSON AND JERSEY CITY MAYOR BRET SCHUNDLER SUPPORT SCHOOL CHOICE AS THE ONLY WAY TO FORCE REFORM OF THE PUBLIC SCHOOLS SUBURBAN TAXPAYERS SHOULDN'T SEND MORE MONEY TO A FAILED SYSTEM SAYS MAYOR SCHUNDLER THEY SHOULD ALLOW SCHOOL CHOICE WHICH IS WHAT INNERCITY PARENTS REALLY WANT BUT WHEN MAYOR SCHUNDLER TRIED TO PUT A NONBINDING SCHOOLCHOICE REFERENDUM ON NEXT MONTH'S BALLOT THE UNIONS FOUND A JUDGE WHO AGREED THAT THE CITY DIDN'T HAVE A RIGHT TO SURVEY ITS RESIDENTS THE UNIONS HAD PLANNED TO SPEND 1 MILLION TO DEFEAT THE MEASURE THE UNIONS HAVE NOW LAUNCHED A TWOWEEK AD BLITZ ATTACKING THE STATE'S GOP GUBERNATORIAL CANDIDATE CHRISTIE WHITMAN FOR HER SUPPORT OF A PILOT SCHOOLCHOICE PROGRAM THE EDUCATIONAL REACTIONARIES FEEL THEY MUST STAMP OUT SCHOOL CHOICE SAYS MR WOODSON THEY'RE NOT AFRAID IT WILL FAIL THEY FEAR THAT IT WILL SUCCEED FOR NOW THE POOREST CHILDREN IN NEWARK AND BROOKLYN ARE LEARNING MORE THAN THEY NEED TO KNOW ABOUT THE ABC'S OF CHAOS AND FAILURE 9310280095 931028 FERC SAYS FLORIDA POWER MUST OPEN NETWORK ACCESS WASHINGTON THE FEDERAL ENERGY REGULATORY COMMISSION IN A PRECEDENTSETTING DECISION VOTED TO ORDER FLORIDA POWER & LIGHT CO TO PROVIDE MOREFLEXIBLE TRANSMISSION SERVICE TO SMALLER UTILITIES IN THE STATE THE UNANIMOUS DECISION MARKS THE FIRST TIME THE FEDERAL AGENCY HAS ORDERED A PUBLIC UTILITY TO PROVIDE SOCALLED NETWORK TRANSMISSION SERVICE THE DECISION WILL MEAN REDUCED COSTS AND INCREASED FLEXIBILITY FOR SMALLER UTILITIES THAT SEND ELECTRICITY OVER POWER LINES OWNED BY LARGER UTILITIES AND IT WILL SPUR THE GROWTH OF COMPANIES THAT GENERATE ELECTRIC POWER LAST YEAR'S ENERGY POLICY ACT IN AN EFFORT TO INCREASE COMPETITION AMONG SUPPLIERS OF ELECTRIC POWER EXPANDED FERC'S AUTHORITY TO ORDER BIG UTILITIES TO PROVIDE ACCESS AT REASONABLE RATES TO THEIR ENTIRE TRANSMISSION NETWORK YESTERDAY'S VOTE IS THE FIRST SUCH ACTION UNDER THE NEW LAW UNDER THE PROPOSED ORDER FLORIDA POWER & LIGHT MUST NEGOTIATE A RATE FOR NETWORK TRANSMISSION SERVICE WITH THE FLORIDA MUNICIPAL POWER AGENCY WHICH REPRESENTS UTILITIES FOR 26 SMALL MUNICIPAL UTILITIES RATHER THAN CHARGE SEPARATE FEES FOR TRANSMISSION ALONG SEPARATE ROUTES AS IT CURRENTLY DOES FLORIDA POWER & LIGHT MUST SET A FEE FOR ACCESS TO ITS ENTIRE NETWORK 9310280094 931028 FIRMS FACE BIG LOSSES ON IO INVESTMENTS BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL SOME MAJOR SECURITIES FIRMS MUTUAL FUNDS AND INSURANCE COMPANIES ARE GRAPPLING WITH BIG LOSSES FROM INVESTING IN INTERESTONLY STRIPS OF MORTGAGEBACKED SECURITIES WHICH HAVE PLUMMETED IN VALUE THIS YEAR INTERESTONLY STRIPS OR IOS GIVE HOLDERS THE INTEREST PORTION OF MONTHLY PAYMENTS ON A GROUP OF MORTGAGES UNLIKE MOST MORTGAGEBACKED SECURITIES WHICH INCLUDE PRINCIPAL PAYMENTS BECAUSE THEY INCLUDE ONLY THE INTEREST PORTIONS OF MORTGAGES IOS ARE MORE VOLATILE THAN MORTGAGEBACKED SECURITIES BUT THEY CAN ALSO GENERATE RETURNS AS MUCH AS TWICE THAT OF ORDINARY MORTGAGEBACKED SECURITIES DESPITE THE HIGH RISKS IOS HAVE BECOME POPULAR OVER THE PAST SEVERAL YEARS AMONG INSURANCE COMPANIES MUTUAL FUNDS AND SECURITIES FIRMS WHICH HAVE BEEN REACHING FOR YIELD AS INTEREST RATES DROPPED THE SIZE OF THE MARKET IS ESTIMATED AT MORE THAN 20 BILLION A TINY FRACTION OF THE MAMMOTH MORTGAGEBACKED MARKET BUT BIG ENOUGH TO CAUSE LARGE LOSSES ON WALL STREET THE VALUE OF IOS BEGAN COLLAPSING THIS YEAR WHEN REFINANCINGS OF CONSUMER MORTGAGES HIT A PEAK FIRST IN MARCH AND AGAIN IN SEPTEMBER WHEN INTEREST RATES FALL AND HOMEOWNERS REFINANCE THEIR MORTGAGES THE UNDERLYING MORTGAGES THAT SUPPORT IOS EVAPORATE AND PAYMENTS TO IO HOLDERS DRY UP WHEN THAT HAPPENS IOS' PRICES ALSO PLUNGE IN FACT THE VALUE OF MANY WIDELY TRACKED IO SECURITIES HAS FALLEN BY SOME 50 SINCE THE END OF LAST YEAR AND IOS DON'T REPAY ANY PRINCIPAL WHEN THEY RETIRE INSTEAD THOSE PAYMENTS GO TO HOLDERS OF PRINCIPALONLY TRANCHES OR POS PART OF THE PROBLEM IN RECENT MONTHS IS THAT INVESTORS DIDN'T TAKE INTO ACCOUNT SOME BIG CHANGES IN THE CONSUMER MORTGAGE MARKET SAYS PHILIP BARACH MANAGING DIRECTOR AT TRUST CO OF THE WEST HE SAYS THE PROLIFERATION OF NEW CONSUMER MORTGAGE PRODUCTS AND MORTGAGE BROKERS TO HAWK THEM HAVE MADE IT MORE ATTRACTIVE FOR CONSUMERS TO REFINANCE BEFORE IT WAS JUST VANILLA CHOCOLATE AND STRAWBERRY NOW THERE ARE 20000 TYPES OF DIFFERENT MORTGAGE LOANS MANY OF WHICH ARE NOPOINT LOANS HE SAYS THE RESULT IS THAT REFINANCINGS HAVE SOARED BEYOND ANTICIPATED LEVELS HE SAYS THE PROBLEM IN THE IO MARKET IS HAVING A FAR REACHING EFFECT ON WALL STREET LAST WEEK SALOMON INC REPORTED A LOSS OF 173 MILLION IN ITS PROPRIETARY TRADING OPERATIONS REDUCING NET INCOME TO ONLY 20 MILLION FOR THE THIRD QUARTER WHILE SALOMON WOULDN'T COMMENT ON WHETHER IOS CONTRIBUTED TO ITS PALTRY EARNINGS TRADERS BELIEVE THE FIRM SUFFERED LARGE IO LOSSES EVERYONE ON THE STREET OWNED SOME OF THESE AND EVERYONE GOT STUCK SAID PHILIP BARACH MANAGING DIRECTOR AT TRUST CO OF THE WEST MEANWHILE A GROWING NUMBER OF TRADERS OF IOS ON WALL STREET ARE RESIGNING AMID RUMORS OF LOSSES ANDREW FRIEDWALD AN IO TRADER AT SALOMON RESIGNED LAST MONTH MR FRIEDWALD DIDN'T RETURN A CALL FOR COMMENT AND A SALOMON SPOKESMAN DECLINED TO COMMENT TWO TRADERS AT MORGAN STANLEY GROUP INC ALSO RESIGNED RECENTLY WHICH SOME TRADERS ATTRIBUTED TO LOSSES BY THE FIRM OF ABOUT 50 MILLION ON IOS A MORGAN STANLEY SPOKESMAN DECLINED TO COMMENT OTHER LARGE WALL STREET FIRMS THAT ARE ACTIVE IN THE IO MARKET INCLUDE GENERAL ELECTRIC CO'S KIDDER PEABODY & CO AND BEAR STEARNS COS' BEAR STEARNS & CO HOLDERS OF MUTUAL FUNDS THAT HAVE INVESTED IN THE SECURITIES ARE ALSO SMARTING LAST WEEK HOLDERS OF HYPERION 1999 TERM TRUST INC A PUBLICLY TRADED CLOSEDEND BOND FUND WHICH IS PARTLY INVESTED IN IOS FILED A LAWSUIT SEEKING CLASSACTION STATUS AFTER THE PRICE OF THE SHARES DROPPED 30 AND THE FUND'S DIVIDEND WAS CUT TO 52 CENTS FROM 80 CENTS THE SUIT CHARGES THAT INVESTORS WERE MISLED ABOUT THE CREDIT QUALITY OF THE FUND'S INVESTMENTS THE SUIT WAS FILED IN THE US SOUTHERN DISTRICT COURT OF NEW YORK THE FUND IS MANAGED BY LEWIS RANIERI WHO IS CONSIDERED THE CREATOR OF THE MORTGAGEBACKED SECURITIES MARKET THE MARKET THAT EVENTUALLY GAVE BIRTH TO IOS SINCE THE START OF THIS MONTH THE VALUE OF IOS HAS BEGUN TO REBOUND ONE WIDELY TRACKED IO THE FANNIE MAE TRUST 203 HAS RISEN FROM A PRICE OF 16 CENTS ON OCT 1 TO A PRICE YESTERDAY OF AROUND 1725 CENTS ONE TRADER SAID THE REBOUND IS IN PART BECAUSE OF A RISE IN INTEREST RATES AND A SUBSEQUENT SLOWDOWN IN REFINANCINGS IN RECENT WEEKS HEDGE FUNDS AND OTHER SPECULATORS HAVE REPORTEDLY BEGUN BOTTOM FISHING IN THE IO MARKET ON THE BELIEF THAT INTEREST RATES HAVE FINALLY BOTTOMED OUT AND REFS WILL SLOW HOWEVER THAT KIND OF THINKING IS WHAT GOT INVESTORS IN IOS INTO SO MUCH TROUBLE IN THE FIRST PLACE MANY INVESTORS RUSHED TO LOAD UP ON IOS AT THE END OF THE FIRST QUARTER BELIEVING INTEREST RATES WHICH WERE AT THEIR LOWEST LEVEL IN DECADES WOULD RISE THEY ALSO BELIEVED REFINANCINGS WOULD SLOW ESPECIALLY SINCE BY MARCH THE PACE OF REFINANCINGS HAD RISEN TO A RATE NEARLY THREE TIMES ITS LEVEL AT THE END OF 1992 INVESTORS' BETS PAID OFF UNTIL JULY WHEN INTEREST RATES BEGAN FALLING AGAIN AND THE PACE OF REFINANCINGS QUICKENED BY SEPT 10 INVESTORS WERE SUFFERING MOUNTING LOSSES WHEN THE RATE OF REFINANCINGS HIT A NEW RECORD 20 HIGHER THAN THE MARCH LEVEL THIS ISN'T THE FIRST TIME IO SECURITIES HAVE CREATED HAVOC AT FINANCIAL SERVICES FIRMS INDEED LAST YEAR THE VALUE OF IOS FELL ABOUT 20 LEAVING FIRMS SUCH AS THE VENERABLE JP MORGAN & CO WITH ESTIMATED LOSSES OF MORE THAN 200 MILLION MORGAN OFFICIALS HAVE NEVER COMMENTED ON THE SUBJECT 9310280093 931028 LETTERS TO THE EDITOR TAX RATE CUTS SPURRED GROWTH 1947 TO 1967 AL HUNT PEOPLE & POLITICS OPED SEPT 23 BELIEVES THE US TAXED AND SPENT ITS WAY INTO PROSPERITY IN PROMOTING THIS CLAIM MR HUNT MISREPRESENTS IMPORTANT CONSIDERATIONS THAT GOVERNMENT PROPONENTS LIKE HIMSELF ARE ALL TOO HAPPY TO MISREPRESENT FOR EXAMPLE HE IGNORES THE DISTINCTION BETWEEN TAX RATES AND TAX REVENUES CONTRARY TO HIS VIEW THE 19471967 PERIOD IS CHARACTERIZED BY REDUCTIONS IN BOTH INCOME TAX RATES PROMOTED BY KENNEDY AND TARIFF RATES UNDER THE AUSPICES OF GATT BOTH OF THESE TAX RATE REDUCTIONS PROMOTED THE ECONOMIC GROWTH GENERATING THE TAX REVENUES CITED BY MR HUNT HIS MISREPRESENTATIONS CONTINUE WITH HIS FAILURE TO POINT OUT THAT REAGAN'S 1982 TAX INCREASE DID NOT OFFSET HIS 1981 ACROSSTHEBOARD REDUCTIONS IN TAX RATES AND WHILE DRAWING ATTENTION TO INTERNATIONAL TAX COMPARISONS FOR 1991 HE FAILS TO MENTION THAT HIGHER EUROPEAN TAX BURDENS ARE ASSOCIATED WITH THEIR SIGNIFICANTLY WEAKER ECONOMIC AND EMPLOYMENT GROWTH 9310280091 931028 MARKETING & MEDIA MARKETSCAN P&G'S DIAPER PRICE CUTS BACKFIRE ERODING SALES OF PREMIUM BRAND BY GABRIELLA STERN THE PRICE WAR LAUNCHED BY DIAPER TITAN PROCTER & GAMBLE CO ISN'T UNFOLDING QUITE THE WAY THE COMPANY HAD ENVISIONED ON THE ONE HAND DEEP PRICE CUTS HAVE SLOWED THE GROWTH OF LESSEXPENSIVE PRIVATELABEL DISPOSABLE DIAPERS AND P&G'S LUVS BRAND HAS GROWN SINCE MAY WHEN THE COMPANY SLASHED ITS PRICE BY 16 AND REPOSITIONED LUVS AS A MIDDLEPRICE NOFRILLS BRAND BUT TO P&G'S CHAGRIN LUVS HAS SUCCEEDED IN CANNIBALIZING ITS PREMIUMPRICED SISTER BRAND PAMPERS WHOSE PRICE WAS CUT ONLY 5 IN MAY WHAT'S MORE SOME BIG RETAILERS INCLUDING SAFEWAY AND TOYS R US ACCORDING TO P&G HAVE STOPPED CARRYING LUVS P&G ALSO IS STILL WOEFULLY BEHIND ARCHRIVAL KIMBERLYCLARK CORP IN ROLLING OUT TWO KEY PRODUCTS EXTRATHIN DIAPERS AND TRAINING PANTS IT WAS ONLY LAST MONTH THAT THE COMPANY FINALLY LAUNCHED PAMPERS ULTRA DRY THINS NATIONALLY IN A BELATED RESPONSE TO KIMBERLYCLARK'S HUGGIES ULTRATRIMS AND P&G WON'T EVEN HINT AT WHEN IT WILL INTRODUCE A PAMPERS TRAINERS NATIONALLY TO COMBAT THE VERY SUCCESSFUL HUGGIES PULLUPS ALL OF THIS HAS HURT P&G'S CREDIBILITY THE DROPPING OF THE PRICE AND COMING IN SO SLOWLY ON PAMPERS ULTRA DRY THINS SAYS FRANCIS BOUDA A DIAPER INDUSTRY CONSULTANT THEY'RE IN TROUBLE KIMBERLYCLARK MEANWHILE CONTINUES TO GAIN BOTH ON THE DIAPER AND TRAININGPANTS FRONTS HUGGIES UNIT SALES IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS FOR THE 13WEEK PERIOD ENDED AUG 29 ROSE 131 FROM A YEAR EARLIER AND WERE UP 116 DURING THE 52WEEK PERIOD ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE MANY PARENTS HAVE SWITCHED TO HUGGIES ULTRATRIMS BECAUSE UNTIL RECENTLY IT WAS THE ONLY THIN DIAPER ON THE MARKET BERNITA MYERS OF PITTSBURGH SAYS SHE USED TO BUY LUVS FOR HER 10MONTHOLD TWIN SONS ETHAN AND GRANT BUT WHEN HUGGIES CAME OUT WITH THIN DIAPERS SHE SWITCHED DIAPERS TAKE UP A LOT OF ROOM SO IT WAS A NICE CONSIDERATION FOR STORAGE SPACE IN THE HOUSE AND PACKING THE DIAPER BAG SHE SAYS ALSO CLOTHES FIT OVER THEM BETTER BUT KIMBERLYCLARK ALONG WITH P&G FACES INCREASED PRESSURE FROM LOWPRICED BRANDS DRYPERS CORP THE CLOSELY HELD MAKER OF SUCH INEXPENSIVE REGIONAL BRANDS AS DRYPERS COZIES AND BABY'S CHOICE ANNOUNCED AN AGGRESSIVE 12 MILLION COUPON CAMPAIGN LAST JUNE AND YESTERDAY SLASHED PRICES 189 FOR NEARLY EVERY COMPANY INVOLVED SALES AS MEASURED IN DOLLARS ARE PLUMMETING AS DIAPER MAKERS DUKE IT OUT FOR LEADERSHIP OF THE 4 BILLION DOMESTIC MARKET DOLLAR SALES DECLINED FOR BOTH P&G AND KIMBERLYCLARK IN THE 13WEEK PERIOD AND P&G'S DOLLAR SALES ALSO WERE DOWN DURING THE 52 WEEKS THAT HURTS BECAUSE P&G AND KIMBERLYCLARK DERIVE 16 AND 23 RESPECTIVELY OF THEIR TOTAL SALES FROM DIAPERS THE DIAPER WAR ALSO HAS BEEN BRUISING TO PRIVATE LABELS THOUGH THEY REMAIN A CONSIDERABLE FORCE THEIR PRICING EDGE IS ERODING DURING THE RECENT 13WEEK PERIOD UNIT SALES OF PRIVATE LABELS ROSE ONLY 124 COMPARED WITH 218 OVER THE 52WEEK PERIOD PRIVATE LABELS' MARKET SHARE MEASURED IN UNITS ROSE LESS THAN A PERCENTAGE POINT DURING THE RECENT PERIOD COMPARED WITH 26POINT GROWTH FOR THE YEAR ANALYSTS AREN'T RULING OUT THE POSSIBILITY OF ADDITIONAL PRICE CUTS BY BIGBRAND MAKERS WHICH ALREADY ARE RESPONSIBLE FOR THREE REDUCTIONS DURING THE PAST 17 MONTHS IT'S WIDELY BELIEVED IN THE INDUSTRY THAT P&G CONSIDERED SLASHING PAMPERS PRICES BY ABOUT 10 IN MAY BUT CHOSE 5 RESERVING THE RIGHT TO MAKE ANOTHER 5 CUT LATER DAVID PITASSI MANAGING DIRECTOR OF DRYPERS IS BRACING FOR THE WORST YET ANOTHER PRICE CUT BY P&G ALL EYES ARE ON P&G IN THE WAKE OF THE BELATED LAUNCH OF PAMPERS ULTRA DRY THINS AND LUVS' APPARENT CANNIBALIZATION OF PAMPERS DURING THE 13WEEK PERIOD UNIT SALES OF LUVS INCREASED 163 COMPARED WITH A 10 DROP OVER THE 52 WEEKS PAMPERS' UNIT SALES DECLINED 89 DURING THE 13 WEEKS THAT COMPARES WITH A LESS PRECIPITOUS DECLINE OF 51 IN THE 52WEEK PERIOD LUVS IS ATTRACTING PARENTS WHO DON'T LIKE THE QUALITY OF GENERICS BUT WANT A BARGAIN NANCY FOSTER MOTHER OF 10MONTHOLD JACK IN PITTSBURGH SAYS SHE HAS BECOME A REGULAR LUVS BUYER NOW THAT IT'S PRICED BETWEEN BIGNAME BRANDS AND PRIVATELABEL DIAPERS WHOSE QUALITY SHE DOESN'T LIKE THE LAST COUPLE OF TIMES I'VE GONE TO THE GROCERY STORE I'VE PULLED LUVS OFF THE SHELF INSTEAD OF PAMPERS I WILL ABSOLUTELY BUY LUVS BECAUSE THEY'RE AS GOOD AS PAMPERS SHE SAYS P&G ACKNOWLEDGES THAT IT NEEDS TO FIX ITS PAMPERS LINE CLEARLY WE LOOK AT PAMPERS' NUMBERS AS NOT BEING WHAT THEY SHOULD BE A P&G SPOKESWOMAN SAYS THE COMPANY BELIEVES THE SEPT 7 NATIONAL LAUNCH OF PAMPERS ULTRA DRY THINS WILL PUMP UP THE BRAND'S SALES BY ERODING SOME OF HUGGIES GAINS P&G ALSO IS COUNTING ON THE EVENTUAL NATIONAL INTRODUCTION OF PAMPERS TRAINERS CURRENTLY BEING TESTED IN OMAHA NEB ON MONDAY P&G EXPANDED THE TRAININGPANTS TEST TO UNIDENTIFIED MARKETS IN THE EASTERN US HOWEVER THE COMPANY WON'T SAY WHEN IT MIGHT LAUNCH THE PRODUCT NATIONALLY THE PROBLEM WITH PINNING HOPES ON PAMPERS ULTRA DRY THINS IS THAT NO ONE REALLY KNOWS HOW TO INTERPRET THE RESULTS OF THE OMAHA TEST WHICH BEGAN MAY 17 DURING THE 13WEEK PERIOD ENDED AUG 29 WHEN OMAHA SHOPPERS COULD BUY THIN DIAPERS UNDER THE LUVS AND PAMPERS BRANDS OF THE TWO ONLY PAMPERS OFFERS A THIN DIAPER NATIONALLY LUVS' MARKET SHARE IN UNITS ROSE 82 POINTS THAT COMPARES WITH A 52WEEK GAIN OF ONE SHARE POINT PAMPERS' UNIT SHARE DROPPED 39 POINTS DURING THE 13 WEEKS BUT THAT WAS LESS STEEP THAN PAMPERS' FIVEPOINT DECLINE DURING THE 52 WEEKS AND HUGGIES SHARE FELL MORE DURING THE 13 WEEKS 29 POINTS THAN DURING THE 52WEEK PERIOD WHEN IT DECLINED ONE POINT BUT ANALYSTS SAY THE NATIONAL PRICE CUTS IN MAY MAY HAVE BEEN AS BIG A FACTOR AS THE NEW THIN DIAPERS IN THOSE RESULTS FURTHER OBSCURING THE OMAHA DATA ACCORDING TO P&G IS THE FACT THAT IN JULY THE COMPANY DECIDED TO PUT FEWER DIAPERS IN EACH PAMPERS PACKAGE AND LOWER THE PRICE TO EQUAL HUGGIES P&G BELIEVED IT WAS LOSING SHARE TO CONSUMERS WHO WERE UNAWARE OF THE DIFFERENCE IN DIAPER COUNT AND THUS BELIEVED HUGGIES WAS A BETTER BUY BECAUSE THE SMALLER PACKAGES WERE PRICED LOWER THAN PAMPERS P&G DESCRIBES THE OMAHA TEST AS ENCOURAGING AND ANDREW SHORE AN ANALYST WITH PAINEWEBBER SAYS THERE WERE ENOUGH POSITIVE SIGNS IN OMAHA TO BELIEVE THAT PAMPERS WILL REGAIN SOME SHARE AFTER THE NATIONAL ROLLOUT OF ULTRA DRY THINS IS COMPLETED STILL PAMPERS ULTRA DRY THINS IS AT A DISADVANTAGE TO HUGGIES ULTRATRIMS BECAUSE THE BRAND DOESN'T COME IN ALL SIZES TO LAST BABY FROM BIRTH THROUGH TOILET TRAINING P&G WON'T SAY WHETHER IT WILL MAKE THE THIN PAMPERS IN OTHER SIZES FOR ALL ITS GAINS LUVS TOO REMAINS A PROBLEM FOR P&G ITS FUTURE IS FAR FROM SECURE MORE AND MORE RETAILERS HAVE STOPPED CARRYING THE BRAND THEY VIEW ITS MEDIUM PRICE AS A THREAT TO LOWERPRICED PRIVATE LABELS WHICH BRING THEM FAT MARGINS AND THEY ARE UNDER PRESSURE TO TRIM THE MULTITUDE OF DIAPER SIZES AND VARIETIES FROM CROWDED SHELVES THEY TARGETED LUVS BECAUSE ITS MARKET SHARE HAD BEEN FALLING ALONG WITH P&G MARKETING SUPPORT SAFEWAY AND TOYS R US ARE AMONG THE LARGER CHAINS THAT HAVE DROPPED LUVS A SAFEWAY SPOKESMAN CITES THEIR DECLINING MARKET SHARE AND THE FACT THAT THEY WEREN'T SELLING ANOTHER SIGN OF THE BRAND'S PRECARIOUS STATUS P&G HAS STOPPED SELLING LUVS IN CANADA P&G PLAYS DOWN SOME RETAILERS' DECISIONS TO DISCONTINUE LUVS WE'RE PLEASED WITH THE RETAIL SUPPORT WE'RE SEEING THE P&G SPOKESWOMAN SAYS 9310280090 931028 NEXTEL TO BUY RADIODISPATCH FIRM FOR STOCK BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL RUTHERFORD NJ NEXTEL COMMUNICATIONS INC CONTINUING ITS SHOPPING SPREE IN THE RADIO DISPATCH BUSINESS SAID IT WILL BUY A VITAL PLAYER POWERFONE HOLDINGS INC FOR STOCK VALUED AT ALMOST 400 MILLION SHARES OF NEXTEL A HEAVILY TRADED COMPANY SHOT UP 3 TO CLOSE AT 4950 IN OVERTHECOUNTER TRADING YESTERDAY AND SHARES OF NEXTEL'S TWO MAJOR COMPETITORS ROSE SHARPLY AS WELL BECAUSE THE POWERFONE ACQUISITION SIGNALS A MOVE TOWARD A MORE UNIFORM NATIONWIDE PHONE AND DATA NETWORK FOR THE DISPATCH INDUSTRY THE COMPANY WILL NOW BE LICENSED TO PROVIDE SERVICE IN MARKETS WITH 115 MILLION RESIDENTS NEXTEL AND ITS PRIMARY COMPETITORS DIAL PAGE INC OF ATLANTA AND CENCALL COMMUNICATIONS INC OF DENVER HAVE STRUCK A SERIES OF RAPIDFIRE DEALS IN THE PAST TWO WEEKS PROPELLING THEM TO THE TOP OF THE HEAP AMONG MOBILE RAD PLAYERS IN OTC TRADING DIAL PAGE ROSE 4 TO 6450 WHILE CENCALL SHARES ROSE 175 TO 43 NEXTEL'S LATEST ACQUISITION FOLLOWS ITS ANNOUNCEMENT LESS THAN TWO WEEKS AGO THAT IT WOULD BUY TWO DISPATCH UNITS OF COMPETITORS AND A BIG STAKE IN CENCALL IN TRANSACTIONS THEN VALUED AT ABOUT 780 MILLION AND EARLIER THIS WEEK CENCALL AND DIAL PAGE FORTIFIED THEIR POSITIONS BY AGREEING TO ACQUIRE ALMOST HALF OF MOTOROLA'S RADIO LICENSES IN TRANSACTIONS VALUED AT ABOUT 12 BILLION IN STOCK DISPATCH COMPANIES PROVIDE RADIO SERVICES TO CAB DRIVERS PLUMBERS AND TRUCKING COMPANIES ALMOST OVERNIGHT HOWEVER THEIR INDUSTRY HAS BLOSSOMED AS AN OVERLOOKED BUT FASTGROWING PIECE OF THE TELECOMMUNICATIONS FRENZY THESE FIRMS ARE PRESSING TO CONVERT THEIR ANALOG SYSTEMS TO DIGITAL AND PROVIDE CELLULARLIKE PHONE AND DATA SERVICE AS A RESULT THEY ARE LIKELY TO COMPETE WITH ESTABLISHED CELLULAR PLAYERS IN MANY LARGE URBAN MARKETS THE LONGRUN IMPLICATION OF THE FLURRY OF DEALS IS SWEEPING SAID JOHN L BAUER III ANALYST AT PRUDENTIAL SECURITIES NEXTEL DIAL PAGE AND CENCALL ARE IN A RACE AGAINST THE CLOCK TO ACQUIRE SCARCE RADIO SPECTRUM IN AS MANY MARKETS AND AS QUICKLY AS POSSIBLE NEXTEL BELIEVES ITS LATEST ACQUISITION WILL HELP SPEED UP THE INDUSTRY'S ATTEMPT TO ESTABLISH A NATIONWIDE NETWORK SINCE NEXTEL DIAL PAGE AND CENCALL NOW HAVE MUCH OF THE COUNTRY'S GEOGRAPHIC REGION COVERED ANALYSTS HOWEVER SAY THAT MOBILE RADIO FIRMS STILL FACE THE CONSIDERABLE TASK OF RAISING BILLIONS OF DOLLARS TO SET UP AN INFRASTRUCTURE THAT CAN HANDLE WIRELESS CALLS COAST TO COAST IN ITS AGREEMENT WITH POWERFONE NEXTEL SAID IT WILL ISSUE EIGHT MILLION SHARES TO POWERFONE SHAREHOLDERS BASED ON THE 4950 CLOSING PRICE OF NEXTEL'S SHARES WEDNESDAY THE TRANSACTION IS VALUED AT ABOUT 396 MILLION REGULATORY AND SHAREHOLDER APPROVALS ARE STILL REQUIRED BUT THE DEAL IS EXPECTED TO CLOSE IN THE FIRSTQUARTER OF 1994 9310280088 931028 J BAKER CHIEF AGREES TO SETTLE SEC CHARGES PACT STEMS FROM INQUIRY OF INSIDER TRADING TIED TO AMES CREDITOR PANEL BY MILO GEYELIN AND NEELA BANERJEE STAFF REPORTERS OF THE WALL STREET JOURNAL THE CHAIRMAN OF SHOE RETAILER J BAKER INC WHO ALLEGEDLY TRADED ON INSIDE INFORMATION WHILE SERVING ON A CREDITORS' COMMITTEE IN A MAJOR BANKRUPTCYLAW PROCEEDING AGREED TO PAY MORE THAN 700000 TO SETTLE CIVIL CHARGES BY THE SECURITIES AND EXCHANGE COMMISSION THE SETTLEMENT BY SHERMAN N BAKER COMES IN WHAT SECURITIES LAWYERS BELIEVE IS THE FIRST SEC ENFORCEMENT ACTION STEMMING FROM ALLEGED INSIDER TRADING RELATED TO CREDITORS' COMMITTEE WORK SEC OFFICIALS BEGAN TELLING LAWYERS A YEAR AGO THAT THEY WERE BECOMING INCREASINGLY TROUBLED BY THE POTENTIAL FOR INSIDER FRAUD IN BANKRUPTCYLAW PROCEEDINGS BECAUSE OF THE AMOUNT OF INFORMATION AVAILABLE TO CREDITORS ACCORDING TO THE SEC COMPLAINT THAT WAS RELEASED WITH HIS CONSENT AGREEMENT J BAKER SHOE BOUTIQUES AT AMES DEPARTMENT STORES INC ACCOUNTED FOR 45 OF J BAKER'S SALES IN 1991 AS A MEMBER OF THE CREDITORS' COMMITTEE DURING THE RETAIL CHAIN'S BANKRUPTCY MR BAKER LEARNED IN SEPTEMBER 1991 THAT AMES PLANNED TO CLOSE 60 TO 75 STORES THE COMPLAINT SAID AT A CREDITORS' COMMITTEE MEETING SEVERAL DAYS LATER MR BAKER LEARNED THAT 164 STORES WERE SLATED TO BE CLOSED OVER THE NEXT TWO DAYS ACCORDING TO THE SEC HE SOLD 200000 OF HIS SHARES OF J BAKER STOCK AVERTING 559000 IN LOSES SEVERAL DAYS LATER WHEN THE STOCK PLUNGED 22 ON NEWS THAT THE STORES WERE SHUTTING DOWN THE STOCK OF J BAKER BASED IN READVILLE MASS TRADES ON THE NEW YORK STOCK EXCHANGE MR BAKER AGREED IN HIS SETTLEMENT TO DISGORGE THE 559000 HE AVOIDED IN LOSSES PLUS 98000 IN PREJUDGMENT INTEREST AND A 56000 CIVIL PENALTY THE AGREEMENT WHICH IS PENDING APPROVAL IN FEDERAL COURT IN MANHATTAN STIPULATES THAT MR BAKER 73 YEARS OLD NEITHER ADMITS NOR DENIES THE SEC'S ALLEGATIONS AN OCT 11 1991 ARTICLE IN THE WALL STREET JOURNAL REPORTED MR BAKER'S STOCK TRANSACTION SEVERAL DAYS AFTER IT WAS COMPLETED POINTING OUT ITS UNUSUAL TIMING AND MR BAKER'S SEAT ON AMES'S CREDITORS' COMMITTEE THE DEPARTMENT STORE CHAIN HAD FILED FOR PROTECTION FROM ITS CREDITORS DURING FINANCIAL REORGANIZATION UNDER THE FEDERAL BANKRUPTCY CODE IN APRIL 1990 MR BAKER'S ATTORNEY SAID AT THE TIME THAT THE TRANSACTION AMOUNTING TO MORE THAT ONEQUARTER OF MR BAKER'S HOLDINGS IN THE COMPANY HAD BEEN CONTEMPLATED FOR MONTHS AND A WISCONSIN STATE INVESTMENT OFFICIAL SAID HE HAD BEEN TOLD BY MR BAKER THAT THE SALE WAS FOR ESTATE PLANNING PURPOSES IN A WRITTEN STATEMENT MR BAKER REITERATED THAT THE SALE WAS PROPER BUT THAT HE CHOSE TO SETTLE TO AVOID A PROLONGED LEGAL CONTEST WHICH WOULD HAVE BEEN COSTLY AND EXTREMELY STRESSFUL ASSOCIATE NORTHEAST REGIONAL DIRECTOR FOR THE SEC ROBERT BLACKBURN IN NEW YORK WOULDN'T SAY WHAT LED REGULATORS TO INVESTIGATE THE CASE MR BLACKBURN ALSO DECLINED TO SAY WHETHER THE COMPLAINT SIGNALED A NEW ENFORCEMENT EMPHASIS BY THE SEC BANKRUPTCY LAW EXPERTS SAID THAT CREDITORS' COMMITTEE MEMBERS ARE ROUTINELY WARNED THAT STOCK TRADES BASED ON INFORMATION THEY GATHER THROUGH SUCH COMMITTEES ARE ILLEGAL AND SUBJECT TO SANCTIONS UNDER THE TRADING AND SECURITIES FRAUD ENFORCEMENT ACT OF 1988 THAT THE LAW APPLIES TO CREDITORS IS NOTHING NEW SAID NEW YORK BANKRUPTCY SPECIALIST HARVEY MILLER AT THE FIRM WEIL GOTSHAL & MANGES WHAT'S NEW HE SAID IS THAT IT HAS BEEN ENFORCED 9310280087 931028 REVIEW & OUTLOOK EDITORIAL ASIDES HOUSE REFORM SMOKE SCREEN LIBERAL HOUSE MEMBERS ARE TRYING TO EMULATE REP JIM INHOFE WHO RALLIED THE PUBLIC TO END SECRET DISCHARGE PETITIONS LAST MONTH THEY'VE ASKED NEWSPAPERS AND TALK SHOWS TO TAKE UP A PET CRUSADE OF THEIR OWN BUT THEIR CHOICE IS AN ODD ONE THEY WANT THE SENATE TO AGREE TO CURBS ON THE FILIBUSTER AS PART OF ANY CONGRESSIONAL REFORM PACKAGE DEMOCRATIC SENATOR DAVID BOREN SAYS HE IS PUZZLED BY HOUSE MEMBERS MAKING SUCH A LINKAGE HE SAYS IT WOULD BE A MISTAKE TO CONDITION HOUSE REFORM ON FILIBUSTER CHANGES THAT ARE OBVIOUSLY NOT GOING TO HAPPEN WE CERTAINLY HOPE THIS EXERCISE ISN'T AN EXCUSE FOR HOUSE DEMOCRATS TO KILL REFORM IN THEIR OWN CHAMBER THIS YEAR AS FOR THE FILIBUSTERS THEMSELVES WE CERTAINLY WOULD OPPOSE ANY FILIBUSTERS THAT WERE CONDUCTED IN SECRET BUT THE CURRENT RULES PROTECT MINORITY RIGHTS HAVE BEEN USED BY BOTH PARTIES AND EVERYONE KNOWS EXACTLY WHICH SENATORS ARE RESPONSIBLE FOR ANY DELAY 9310280086 931028 ALTERNATIVEFUEL ADVOCATES GET BUS LIFT IN LOS ANGELES LOS ANGELES COUNTY TRANSPORTATION OFFICIALS HERE GAVE ALTERNATIVEFUEL ADVOCATES A BIG BOOST BY DECIDING TO BUY ONLY BUSES THAT ARE FUELED BY NATURAL GAS OR METHANOL INSTEAD OF THE DIESELPOWERED MODELS PROPOSED WITH THE MOVE THE LOS ANGELES COUNTY METROPOLITAN AUTHORITY BECOMES THE FIRST MASSTRANSIT SYSTEM IN THE NATION TO SWITCH TO SUCH AN ENVIRONMENTALLY CLEANER FLEET YESTERDAY'S DECISION AFFECTS NOT ONLY THE ROUGHLY 300 BUSES SLATED TO BE PURCHASED THIS YEAR BUT IT ESTABLISHES THE GROUND RULES FOR ALL FUTURE BUS PURCHASES THE NEW POLICY ALSO CALLS FOR CONSIDERING PURCHASES OF ELECTRICPOWERED BUSES IN THE FUTURE DENNIS ZANE EXECUTIVE DIRECTOR OF THE COALITION FOR CLEAN AIR A LOCAL UMBRELLA GROUP FOR ENVIRONMENTAL ORGANIZATIONS SAID THAT THE AGENCY'S DECISION IS A GIANT STEP FORWARD FOR THE USE OF CLEANERBURNING VEHICLES AND IS LIKELY TO BE IMITATED BY TRANSIT GROUPS AROUND THE NATION 9310280085 931005 PRICING HEALTH CARE HMOS ANOTHER ROADBLOCK FOR ALZHEIMER'S DRUG BY HARRY SCHWARTZ ABOUT FIVE YEARS AGO THE EDITORIAL BOARD OF THIS NEWSPAPER WAGED A DOUGHTY FIGHT FOR A NEW COMPOUND THAT SEEMED TO GIVE HOPE TO ALZHEIMER'S DISEASE SUFFERERS THOUGH THIS NEW DRUG THA NOW NAMED COGNEX APPEARED TO HELP AN APPRECIABLE FRACTION OF ALZHEIMER'S PATIENTS THE FOOD AND DRUG ADMINISTRATION APPEARED TO BE SABOTAGING EFFORTS TO MOVE IT FORWARD IN THE LENGTHY PROCESS REQUIRED TO GET MARKETING PERMISSION AT LONG LAST COGNEX IS BECOMING AVAILABLE FOR DOCTORS TO PRESCRIBE FEEFORSERVICE PHYSICIANS NO DOUBT WILL WRITE PRESCRIPTIONS FOR PATIENTS THEY THINK MAY BE HELPED BY COGNEX BUT WILL SUCH PRESCRIPTIONS BE WRITTEN BY DOCTORS WORKING FOR HEALTH MAINTENANCE ORGANIZATIONS HMOS THE PROVIDERS PRESIDENT CLINTON HAS MADE THE CENTERPIECE OF HIS HEALTH REFORM PLAN THE FIRST COGNEX AUGURIES ARE NOT PROMISING THESE SIGNS OF RESISTANCE COME FROM TWO OF THE NATION'S LARGEST HMOS NORTHERN CALIFORNIA KAISER PERMANENTE AND THE GROUP HEALTH COOPERATIVE OF PUGET SOUND NORTHERN CALIFORNIA KAISER HAS ALREADY DECIDED TO BAN COGNEX FROM ITS FORMULARY IN EFFECT BARRING SUCH PRESCRIPTIONS WITHOUT VERY SPECIAL PERMISSION IT PLANS TO ISSUE AN INFORMATION SHEET GIVING ITS MEMBERS THE CASE AGAINST COGNEX GROUP HEALTH SAYS COGNEX WILL NOT BE ADMITTED QUICKLY TO ITS FORMULARY AND IT HAS EXPRESSED FEAR THAT PRESSURE FROM ITS MEMBERSHIP MAY FORCE IT TO ADD COGNEX TO ITS FORMULARY UNLIKE KAISER GROUP HEALTH AS A COOPERATIVE IS ULTIMATELY CONTROLLED BY THE PEOPLE WHO SIGN UP FOR ITS SERVICES FROM AN HMO'S POINT OF VIEW THE BANS MAKE A LOT OF SENSE HMOS HAVE A FIXED AMOUNT OF MONEY TO SPEND EACH YEAR ON THEIR MEMBERS' HEALTH CARE EVERY NEW DRUG OPERATION OR DIAGNOSTIC MACHINE THEY INTRODUCE PRODUCES COSTS THAT MUST FORCE ECONOMIES ELSEWHERE OR ELSE CREATE PRESSURE FOR RAISING THE FLAT FEE THAT EACH PARTICIPANT IS CHARGED FOR A FULL RANGE OF SERVICES ONLY INNOVATIONS THAT CLEARLY REDUCE TREATMENT COSTS ARE WELCOMED COGNEX IS EXPECTED TO COST ABOUT 1300 TO 1500 ANNUALLY PER PATIENT AND THIS DOES NOT INCLUDE THE COSTS OF BLOOD TESTS AND PHYSICIAN VISITS REQUIRED TO GUARD AGAINST SIDE EFFECTS AGAINST THIS KAISER ARGUES THAT COGNEX HELPS ONLY SOME VICTIMS OF ALZHEIMER'S DISEASE THE GAIN IS NOT VERY GREAT IN MANY PATIENTS AND SOME WHO TAKE COGNEX SUFFER LIVER TOXICITY THAT THE HMOS WOULD HAVE TO TREAT SO FROM AN HMO'S POINT OF VIEW COGNEX IS NOT COSTEFFECTIVE THE MAGIC MANTRA OF HMO HEALTH CARE BUT FOR ANYONE WHO'S AWARE OF THE LIVING HELL IN WHICH MANY ALZHEIMER'S PATIENTS AND THEIR FAMILIES LIVE THIS ARGUMENT DOES NOT WASH THIS INCIDENT HIGHLIGHTS A FEATURE OF HMO MEDICINE THAT PRESIDENT CLINTON HAS NOT WANTED TO DISCUSS HE HAS PRAISED THE HMOS FOR PRACTICING MEDICINE ECONOMICALLY AND AVOIDING THE WASTE HE SEES ENDEMIC IN FEEFORSERVICE MEDICINE BUT HE HAS NEVER DIRECTLY FACED THE PROBLEM THAT HMO ECONOMY IS IN PART MADE POSSIBLE BY DENYING PATIENTS DRUGS TESTS PROCEDURES AND OPERATIONS THAT MIGHT HELP THEM OR AS A FRIEND OF MINE WHO HAD VAGUE AND CONFUSING SYMPTOMS THAT WERE INVESTIGATED BY KAISER PERMANENTE PUT IT THEY GREW TIRED VERY QUICKLY OF TRYING TO FIND WHAT WAS CAUSING MY SYMPTOMS THE SYMPTOMS TURNED OUT TO BE CANCER OBVIOUSLY THERE HAVE TO BE LIMITS PRESUMABLY NOBODY WOULD ADVOCATE THAT EVERY PATIENT RECEIVE A TEST THAT HAD ONLY A 0001 PROBABILITY OF GETTING USEFUL INFORMATION BUT WHERE SHOULD THE LINE BE DRAWN A PROBABILITY OF 1 10 50 80 DITTO FOR THE PROBABILITY THAT A PARTICULAR MEDICINE OR OPERATION MIGHT HELP A PATIENT THE PROBLEM IN THE TYPICAL HMO IS THAT ITS STAFF USUALLY HAS POTENT INCENTIVES TO ECONOMIZE WHILE ITS PATIENTS ARE NOT ORGANIZED IT IS NORMAL IN HMOS FOR PRIMARY CARE PHYSICIANS TO HAVE QUOTAS AS TO HOW MANY TESTS THEY MAY ORDER HOW MANY OUTSIDE CONSULTANTS THEY MAY REFER TO AND HOW MANY PRESCRIPTIONS THEY MAY WRITE MOREOVER BONUSES ARE FREQUENTLY OFFERED TO DOCTORS WHO CUT EXTRA COSTS APPRECIABLY BELOW THEIR QUOTA LEVELS AS TO THE PATIENTS OF AN HMO AT ANY GIVEN TIME ONLY A SMALL PERCENTAGE ARE SICK AT ANY GIVEN TIME THEREFORE THERE MAY BE ONLY A HANDFUL OF MALCONTENTS WHO FEEL THEY'RE NOT GETTING THE CARE THEY NEED SUCH A SMALL NUMBER OF COMPLAINERS CAN BE MET BY VARIOUS TACTICS DESIGNED TO OVERAWE THEM NORMALLY THERE IS NO INDEPENDENT AUTHORITY TO WHOM TO APPEAL OR ANY PATIENT ORGANIZATION TO EXERT PRESSURE THE APPEAL PROCEDURES IN MOST HMOS LEAD TO HIGHERLEVEL OFFICIALS JUST AS PREOCCUPIED WITH AVOIDING COST OVERRUNS AS ARE THE DOCTORS WHERE HMO DOCTORS AND OFFICIALS OWN STOCK IN THE ORGANIZATION STOCK THAT CAN FLUCTUATE WITH ITS PROFITS THE INCENTIVES FOR MAXIMUM ECONOMY ARE STRENGTHENED AT THE VERY LEAST PRESIDENT CLINTON OUGHT TO BE INSISTING THAT EVERY GOVERNMENTLICENSED HMO IN HIS HEALTH REFORM PROPOSAL BE REQUIRED TO ORGANIZE ITS PATIENTS AND HAVE AN OMBUDSMAN FROM AMONG THE PATIENTS EMPOWERED TO ACT AS APPEALS ATTORNEY FOR THOSE WHO FEEL THEY HAVE BEEN THE VICTIMS OF EXCESSIVE ECONOMY OF COURSE AGGRIEVED HMO MEMBERS WHO FEEL THEY'VE BEEN HURT BY BEING DENIED SOME PROCEDURE OR DRUG NOW CAN FILE A MALPRACTICE SUIT BUT ONLY AFTER THE DAMAGE HAS BEEN DONE EVEN SOME PRESTIGIOUS HMOS HAVE PAID OUT AMAZINGLY LARGE SUMS IN MALPRACTICE JUDGMENTS DOCTORS EXPERIENCED IN HMO POLITICS KNOW THAT ONE WAY OF GETTING A PATIENT AN OPERATION OR OTHER PROCEDURE BEING DENIED HIM IS TO WARN HMO OFFICIALS THAT THE PATIENT IS ORNERY AND WILL SUE IF THE HELP IS NOT GIVEN AMERICANS STILL EXPECT THEIR DOCTORS TO PUT PATIENTS' INTERESTS FIRST AS THE COGNEX INCIDENT AT THE TWO MAJOR HMOS SHOWS THAT EXPECTATION NEED NOT BE SATISFIED IN HMO HEALTH CARE MR CLINTON HIS HEALTH REFORM AND THE AMERICAN PEOPLE CAN ONLY BENEFIT IF THE PRESIDENT TAKES SPECIFIC MEASURES TO ENSURE THAT PATIENTS' EXPECTATIONS AND HMO REALITY ARE CONGRUENT MR SCHWARTZ IS A FORMER MEMBER OF THE NEW YORK TIMES EDITORIAL BOARD WHO WRITES OFTEN ON HEALTH CARE SEE RELATED LETTER LETTERS TO THE EDITOR WHY WE REJECTED ALZHEIMER'S DRUG WSJ OCT 28 1993 9310050045 YY93 MM10 9310280084 931028 GE AGREES TO SETTLEMENT OF 195 MILLION LAWSUIT FAIRFIELD CONN GENERAL ELECTRIC CO AGREED TO SETTLE FOR 195 MILLION A SHAREHOLDER SUIT IN CONNECTION WITH THE COMPANY'S ROLE IN A DEFENSECONTRACT FRAUD INVOLVING ISRAEL GE'S INSURERS WILL PAY THE SETTLEMENT THE MONEY EXCEPT FOR LAWYERS' FEES WILL GO TO GE'S GENERAL OPERATING FUND THE SUIT WAS FILED BY A SHAREHOLDER EVELYN BENFIELD IN BEHALF OF ALL GE SHAREHOLDERS THE DERIVATIVE SUIT CHARGED GE DIRECTORS WITH BREACHING THEIR FIDUCIARY DUTIES AND A FORMER TOP EXECUTIVE WITH FAILING TO SUPERVISE EFFECTIVELY A HIGHLEVEL GE MANAGER WHO PARTICIPATED IN THE SCHEME THE SCANDAL INVOLVED EMPLOYEES AT GE AIRCRAFT ENGINE DIVISION IN CINCINNATI DIVERTING US MILITARY AID TO AN ISRAELI GENERAL RAMI DOTAN IN ORDER TO INFLUENCE THAT COUNTRY TO BUY GE JET ENGINES GE SAID BRIAN BRIMELOW A FORMER GE OFFICER TOTALLY DENIES THE ALLEGATIONS IN THE SUIT IN AGREEING TO THE SETTLEMENT GE ALSO DENIED THAT ANY OF THE GE DIRECTORS BREACHED THEIR DUTIES THE SETTLEMENT IS SUBJECT TO APPROVAL BY FEDERAL COURT IN CINCINNATI A HEARING IS SCHEDULED FOR DEC 3 9310280083 931028 UNLIKELY ALLIANCE CREATES LARGEST ART DEALERSHIP BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AN UNLIKELY ALLIANCE THAT CREATES THE WORLD'S LARGEST ART DEALERSHIP IS EXPECTED TO BE ANNOUNCED TODAY IN A DEAL THAT WILL ROCK THE ART MARKET WILDENSTEIN & CO ONE OF THE WORLD'S MOST FAMOUS DEALERS OF IMPRESSIONIST AND OLD MASTER PAINTINGS ACQUIRED A 49 INTEREST IN POWERHOUSE CONTEMPORARY ART DEALER PACE GALLERY THE JOINTPARTNERSHIP ARRANGEMENT COMBINING ONE OF THE ART WORLD'S OLDEST FAMILIES AND ONE OF ITS BRASHEST SUCCESS STORIES ARNE GLIMCHER WHO IS BOTH A DEALER AND A HOLLYWOOD FILM PRODUCER AND DIRECTOR IS BEING UNVEILED WITHOUT DISCLOSING THE TERMS BUT PEOPLE FAMILIAR WITH THE DEAL SAY THAT AFTER ALMOST A YEAR OF NEGOTIATIONS THE 118YEAROLD WILDENSTEIN GALLERY HAS PURCHASED ROUGHLY HALF OF PACE'S INVENTORY THOUGH NOT ITS LUCRATIVE ARTISTS' CONTRACTS WITH A CASH INFLUX ESTIMATED AT BETWEEN 50 MILLION AND 100 MILLION THE ANNUAL REVENUE OF PACE IS CLOSE TO 100 MILLION THE NEW VENTURE WILL BE NAMED PACE/WILDENSTEIN AND WILL CONTINUE TO BE RUN BY MR GLIMCHER ALONG WITH GUY AND ALEC WILDENSTEIN THE FAMILY'S FOURTHGENERATION ART DEALERS THE COMBINED OPERATIONS FEATURING INVENTORY OF ARTWORKS SPANNING FIVE CENTURIES FROM LEONARDO DA VINCI TO JIM DINE WILL HAVE OPERATIONS IN NEW YORK PARIS TOKYO BUENOS AIRES AND LONDON GALLERIES IN HONG KONG AND LOS ANGELES ARE PLANNED FOR NEXT YEAR ALONG WITH A TRAVELING EXHIBITION IN INDIA REACHED AT WILDENSTEIN'S PARIS OFFICES DANIEL WILDENSTEIN HEAD OF THE COMPANY SAID I AM 76 I HAVE CHILDREN AND GRANDCHILDREN AND I HAVE THE IMPRESSION THAT THE TYPE OF BUSINESS WE HAVE BEEN DOING FOR MORE THAN 100 YEARS IS GETTING MORE DIFFICULT MASTERPIECES ARE GOING TO MUSEUMS WHILE THE GROWTH MARKET FOR ART IN THE 21ST CENTURY IS ASIA HE SAID YOU ARE NOT GOING TO SELL TO THE FAR EAST VAN EYCKS AND REMBRANDTS BECAUSE THEY'VE NEVER HEARD OF THEM THEY ARE HE SAID MORE FAMILIAR WITH CONTEMPORARY ARTISTS SUCH AS ROY LICHTENSTEIN TO PROVIDE A BETTER OPPORTUNITY TO KEEP THE PAINTINGS BUSINESS ALIVE I BOUGHT HALF OF THE GREATEST CONTEMPORARY ART GALLERY AND AM GOING INTO PARTNERSHIP WITH MR GLIMCHER HE SAID MR GLIMCHER PRESIDENT OF PACE AND ITS FOUNDER IN 1961 REPRESENTS A WHO'S WHO OF CONTEMPORARY ARTISTS INCLUDING JULIAN SCHNABEL AGNES MARTIN THE ESTATE OF ALEXANDER CALDER CLAES OLDENBERG AND THE ESTATE OF PABLO PICASSO AN ARTIST WHO MR WILDENSTEIN'S FATHER REPRESENTED DURING HIS LIFETIME THE TWO MEN MET 12 YEARS AGO WHEN INTRODUCED BY COLLECTOR DAVID ROCKEFELLER INTERVIEWED FROM HIS 57TH STREET GALLERY A CLEARLY EBULLIENT MR GLIMCHER SAID HE WAS THRILLED AND OPTIMISTIC ABOUT THE PARTNERSHIP AND THE BROADER RANGE OF ART IT COULD OFFER COLLECTORS WILDENSTEIN & CO HAS BOUGHT ON BEHALF OF ROYALTY AND FOR THE NATIONAL GALLERY AND METROPOLITAN MUSEUM OF ART THE GALLERY'S RECORDS INDICATE THAT IT HAS SOLD ROUGHLY ONETHIRD OF ALL THE WORKS THAT PAUL CEZANNE EVER PAINTED ONEFIFTH OF VINCENT VAN GOGH'S PAINTINGS AND OVER 1000 WORKS BY PIERREAUGUSTE RENOIR 9310280082 931028 LEGAL BEAT VICTIMPERPETRATOR RECONCILIATIONS GROW IN POPULARITY BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL EDNA BRUGGER FOUND A SOLUTION TO HER SLEEPING PROBLEMS LAST WEEK SHE MET AND CONFRONTED THE TWO YOUNG MEN WHO BURGLARIZED HER HOME IN FEBRUARY THE CONFRONTATION WAS ORDERED BY A JUDGE IN ELKHART IND AS PART OF A PROGRAM THAT PUTS OFFENDERS ACROSS THE TABLE FROM THEIR VICTIMS BY THE TIME THEY ARE DONE THE VICTIMS AND VICTIMIZERS TYPICALLY HAVE AGREED TO SOME FORM OF RESTITUTION AS IMPORTANT ADVOCATES SAY THE VICTIMS HAVE HAD A CHANCE TO VENT AND THE CRIMINALS HAVE HAD A CHANCE TO CONSIDER THE HUMAN CONSEQUENCES OF THEIR ACTS IN HER CASE MS BRUGGER TOLD THE TWO BURGLARS I FEEL LIKE YOU'RE STEALING ANOTHER HOUR OF SLEEP EACH NIGHT THEY AGREED TO REPLACE HER CROSSCOUNTRY SKIS AND BINOCULARS AND RETURN THE CASH THEY STOLE FROM HER HUSBAND'S WALLET SHE SAYS SHE HAS SLEPT SOUNDLY SINCE THEN I DIDN'T BELIEVE THAT WOULD HAPPEN SHE SAYS I THINK A LOT OF IT HAS TO DO WITH MY SPEAKING MY PIECE SUCH MEETINGS CALLED VICTIMOFFENDER RECONCILIATIONS OR MEDIATIONS GOT THEIR START IN CANADA AND THE FIRST PROGRAM IN THE US WAS LAUNCHED IN ELKHART IN 1977 WITH THE HELP OF MENNONITES SINCE THEN THEIR POPULARITY HAS GROWN STEADILY AND THERE ARE NOW ABOUT 125 PROGRAMS NATIONWIDE THE RECONCILIATION MOVEMENT WHICH FOR THE MOST PART IS DISTINCT FROM THE VICTIMS' RIGHTS MOVEMENT HAS ALSO SPREAD TO EUROPE AFRICA AND NEW ZEALAND IN THE US MOST PROGRAMS FOCUS ON YOUNG OFFENDERS AND MOST CASES INVOLVE VANDALISM THEFT AND OTHER PROPERTY CRIMES IT CAN BE VERY HEALING TO VICTIMS AND IT CAN BE VERY HEALING TO OFFENDERS SAYS HOWARD ZEHR WHO HELPED LAUNCH THE FIRST RECONCILIATION PROGRAM IN THE US TOO OFTEN HE POINTS OUT VICTIMS ARE IGNORED BY THE CRIMINALJUSTICE SYSTEM AND FOR PEOPLE WHO COMMIT CRIMES THIS MEDIATION PUTS THE HUMANITY BACK INTO IT SO YOU HAVE TO UNDERSTAND THE IMPLICATIONS OF WHAT YOU DID WITH A MODERATOR AT THEIR SIDE VICTIMS TYPICALLY ASK THE OFFENDERS WHY THEY COMMITTED THE CRIME OFTEN THEY WANT TO KNOW WHY THEY WERE THE TARGET AND VICTIMS SOMETIMES WANT TO KNOW EXACTLY WHAT THE VANDALS DID WHEN THEY BROKE INTO THEIR HOMES PARTICIPANTS THEN USUALLY NEGOTIATE A CONTRACT FOR RESTITUTION SOMETIMES OFFENDERS AGREE TO PERFORM VARIOUS SERVICES TO THE VICTIM OR THE COMMUNITY MOST VICTIMS REPORT THAT THEIR FEAR AND ANGER SUBSIDES AFTER THEY'VE TOLD THE PERPETRATOR HOW MUCH THEY WERE HURT BY THE CRIME BUT SOME RECONCILIATION EXPERTS SAY THE BENEFITS OF SUCH PROGRAMS GO WELL BEYOND THE EMOTIONAL IN A 1992 STUDY OF PROGRAMS FOR JUVENILES IN FOUR STATES MARK S UMBREIT A PROFESSOR OF SOCIAL WORK AT THE UNIVERSITY OF MINNESOTA FOUND THAT OFFENDERS WHO PARTICIPATED IN THE MEDIATIONS COMPLETED RESTITUTION 81 OF THE TIME SIMILAR OFFENDERS IN COURTADMINISTERED PROGRAMS THAT DIDN'T INVOLVE SUCH RECONCILIATION MEETINGS PAID UP ONLY 58 OF THE TIME PROF UMBREIT ALSO FOUND THAT OFFENDERS WHO PARTICIPATED COMMITTED FEWER SUBSEQUENT CRIMES AND THAT THE CRIMES THEY DID COMMIT WERE LESS SERIOUS THAN AMONG A SIMILAR GROUP THAT DIDN'T PARTICIPATE IN MINNEAPOLIS FOR EXAMPLE ONLY 22 OF THE OFFENDERS WHO FACED THEIR VICTIMS COMMITTED ANOTHER CRIME AS OPPOSED TO 34 IN A SIMILAR GROUP PROF UMBREIT SAYS HIS FINDINGS ON RECIDIVISM ARE ENCOURAGING BUT NOT STATISTICALLY SIGNIFICANT NEVERTHELESS OTHER STUDIES ON RECIDIVISM IN THE WAKE OF VICTIMOFFENDER MEETINGS HAVE ALSO FOUND DECREASES IN THE LIKELIHOOD THAT OFFENDERS WILL STRIKE AGAIN OVERBURDENED JUDGES LIKE VICTIMOFFENDER MEDIATIONS TOO FRANK KNIGHT A CIRCUITCOURT JUDGE IN CORVALLIS ORE SAYS HIS LOCAL PROGRAM SAVES THE COURTS FROM HAVING TO HOLD HEARINGS TO DECIDE ON RESTITUTION REGARDLESS OF THE REHABILITATION VALUES THIS PROGRAM IS PROVIDING A VALUABLE SERVICE TO THE COURT AND COMMUNITY IN DOING THAT EVEN CRIMINALJUSTICE EXPERTS WHO FAVOR RECONCILIATION CAUTION THAT IT DOESN'T APPLY EQUALLY WELL TO ALL CRIMES AND ALL CRIMINALS JUDGE KNIGHT FOR EXAMPLE NOTES THAT IT HAS A GREATER REHABILITATIVE IMPACT ON A NEWER OFFENDER AND MANY PROPONENTS POINT OUT THAT WITH MANY CRIMINALS IT MUST BE COMBINED WITH DRUG ALCOHOL AND OTHER COUNSELING TO HAVE ANY LASTING EFFECT SOME LAWYERS WORRY THAT JUDGES WILL BE TEMPTED TO SUBSTITUTE RECONCILIATION FOR INCARCERATION I'D LIKE PEOPLE TO FOCUS FIRST ON DEFENDANTS GETTING JUST PUNISHMENT THAT SATISFIES THE VICTIM RATHER THAN TOUCHYFEELY SESSIONS THAT ARE SUPPOSED TO MAKE THE DEFENDANT FEEL GOOD SAYS FORMER US ATTORNEY GENERAL WILLIAM BARR WHO NONETHELESS DOESN'T OPPOSE RECONCILIATION WHAT CONCERNS ME IS THAT IT CAN BE PRESENTED AS A SUBSTITUTE FOR EXACTING PROPER PUNISHMENT BUT MANY VICTIMS FEEL THAT THEY CAN HELP TO REFORM OFFENDERS AFTER SEVERAL BOYS BURNED DOWN A SHED USED BY THE OLDEST BOY SCOUT TROOP IN OREGON THEY AGREED DURING A MEDIATION WITH THE VICTIMS TO PAY 200 EACH IN RESTITUTION BUT REPRESENTATIVES FOR THE TROOP AND CHURCH ON WHOSE GROUNDS THE SHED SAT AGREED TO REDUCE THE AMOUNT FOR EVERY A THE BOYS RECEIVED IN SCHOOL SEPARATELY VIRGINIA HOEYE WAS ONE OF ABOUT 10 CAR OWNERS TO FACE OFF AGAINST TWO YOUNGSTERS WHO HAD STOLEN EMBLEMS FROM CARS IN THE CORVALLIS AREA FOR MS HOEYE MAKING THE YOUNGSTERS UNDERSTAND WHAT THEY DID WAS FAR MORE IMPORTANT THAN THE 111 SHE RECEIVED FROM EACH BOY TO PURCHASE CLIPS TO REPLACE THE EMBLEM ON HER ENGLISH FORD I WAS CONCERNED ABOUT THE BOYS I SAW THIS AS A WAY TO TURN THIS AROUND SHE SAYS SOMETIMES THERE IS NO WAY TO TURN IT AROUND SOME PIONEERS ARE BEGINNING TO EXPERIMENT WITH MEDIATION INVOLVING VIOLENT CRIMINALS INCLUDING MURDERERS LAST YEAR SUZANNE MOLHAN MET THE MAN WHO SHOT AND KILLED HER SON STEPHEN EARLY ONE MORNING ON A PROVIDENCE RI STREET MS MOLHAN HAD BEEN GRIEVING FOR 10 YEARS AND HAD IMMERSED HERSELF IN A SUPPORT GROUP SHE FOUNDED FOR SURVIVORS OF MURDER VICTIMS I KNEW I NEEDED TO DETACH MYSELF FROM THE ORGANIZATION AND GO ON WITH MY LIFE SHE SAYS DESPITE CONTRARY ADVICE FROM HER SUPPORT GROUP AND HER DAUGHTER MS MOLHAN DECIDED TO CONFRONT THE MAN WHO HAD KILLED HER SON WITH THE HELP OF A THERAPIST AND PROF UMBREIT SHE SPENT 10 MONTHS PREPARING FOR THE MEETING SHE EVEN PLANNED HER ENTRY INTO THE PRISON CONFERENCE ROOM SO THAT SHE WOULD SEE THE BACK OF THE CONVICT'S HEAD FIRST IT'S ALLOWED ME TO HEAL SAYS MS MOLHAN WHO HAS SINCE RESIGNED AS A LEADER OF HER SUPPORT GROUP IT WAS LIKE THE LAST STEP IT WAS THE LAST THING I COULD DO SHE ADDS I HOPE THAT HE NEVER FORGETS THE LOOK ON MY FACE WHEN I TOLD HIM I LOST THE BEST FRIEND IN MY LIFE THE TEXAS SUPREME COURT RULED THAT AN AUTOMOBILE INSURER COULDN'T DENY COVERAGE TO A POLICYHOLDER WHO WAS BEING SUED BY HIS WIFE AFTER AN ACCIDENT THE STATE'S HIGHEST COURT UPHELD AN APPEALS COURT RULING THAT THE FAMILYMEMBER EXCLUSION VIOLATED THE STATE'S SAFETY RESPONSIBILITY ACT WHICH REQUIRES AUTOMOBILE LIABILITY INSURANCE AND CONFLICTED WITH THE UNDERLYING PUBLIC POLICY THE CASE AROSE WHEN RANDALL JOHNSON WAS SUED BY HIS WIFE WHO WAS INJURED IN A COLLISION BETWEEN HIS TRUCK AND ANOTHER VEHICLE MR JOHNSON'S INSURER NATIONAL COUNTY MUTUAL FIRE INSURANCE CO OFFERED TO DEFEND HIM IF IT COULD RESERVE ITS RIGHT TO DENY COVERAGE AND PAYMENT OF ANY JUDGMENT UNDER A POLICY EXCLUSION THAT PRECLUDED COVERAGE OF FAMILY MEMBERS' CLAIMS THE COURT RULED THAT THE EXCLUSION PREVENTS A SPECIFIC CLASS OF INNOCENT VICTIMS FROM RECEIVING FINANCIAL PROTECTION UNDER AN INSURANCE POLICY THE COURT NOTED THAT 21 OF 25 JURISDICTIONS WITH MANDATORYINSURANCE LAWS HOLD FAMILYMEMBER EXCLUSIONS INVALID BECAUSE THEY ARE CONTRARY TO PUBLIC POLICY IN A DISSENTING OPINION JUSTICE CRAIG ENOCH SAID THE RULING WOULD CREATE POTENTIAL LIABILITIES FOR THE STATE'S INSURERS FLAGBURNING CASE A DIVIDED OHIO SUPREME COURT OVERTURNED THE CONVICTION OF A WOMAN WHO BURNED A US FLAG TO PROTEST THE PERSIAN GULF WAR THE ASSOCIATED PRESS REPORTED IN A 43 DECISION THE COURT SAID THE JUDGE SHOULD HAVE TOLD JURORS THAT FLAGBURNING IS A PROTECTED FORM OF EXPRESSION AS DETERMINED BY THE US SUPREME COURT IN 1989 AND WASN'T IN ITSELF PROOF THAT THE DEFENDANT HAD INCITED VIOLENCE THE OHIO SUPREME COURT RETURNED THE CASE TO CUYAHOGA COUNTY COMMON PLEAS COURT THE COUNTY PROSECUTOR'S OFFICE SAID IT HADN'T BEEN DECIDED WHETHER TO RETRY THE CASE OR APPEAL TO THE US SUPREME COURT POWER'S APPEAL KATHERINE POWER THE FORMER ANTIWAR RADICAL WHO SURRENDERED AFTER 23 YEARS TO FACE CHARGES CONNECTED TO A DEADLY BANK ROBBERY IS CHALLENGING AN ORDER THAT BARS HER FROM SELLING HER STORY THE ASSOCIATED PRESS REPORTED RIKKI KLIEMAN MS POWER'S LAWYER FILED A MOTION IN SUFFOLK COUNTY MASS SUPERIOR COURT ARGUING THAT THE ORDER VIOLATES MS POWER'S RIGHT TO FREE SPEECH MS POWER 44 YEARS OLD PLEADED GUILTY THIS MONTH OF MANSLAUGHTER IN THE 1970 DEATH OF BOSTON POLICE OFFICER WALTER SCHROEDER SHE WAS SENTENCED TO EIGHT TO 12 YEARS IN PRISON PLUS 20 YEARS' PROBATION THAT INCLUDED A CONDITION BARRING HER FROM MAKING MONEY FROM HER STORY ANDREA GERLIN CONTRIBUTED TO THIS ARTICLE 9310280081 931028 MONEYFUND YIELDS VARIED LITTLE IN WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS WERE LITTLE CHANGED IN THE LATEST WEEK IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS EASED TO 267 FROM 268 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS SLIPPED TO 264 FROM 265 WHILE THE 30DAY SIMPLE YIELD REMAINED AT 265 THE 30DAY COMPOUND YIELD HELD STEADY AT 269 ASSETS OF 620 TAXABLE FUNDS DIPPED BY 6652 MILLION TO 47676 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACTUALLY TOOK OUT 180 BILLION WHILE INDIVIDUAL INVESTORS PUT IN 114 BILLION THE AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS LENGTHENED BY ONE DAY TO 64 DAYS THE AVERAGE TAXEXEMPT SEVENDAY COMPOUND YIELD REMAINED AT 2 ACCORDING TO MONEY FUND REPORT WHICH IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 313 FOR SOMEONE PAYING 36 IN TAXES AND TO 331 FOR THOSE WHO PAY 396 ASSETS OF 328 TAXEXEMPT FUNDS FELL BY 2014 MILLION TO 10398 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY STAYED AT 68 DAYS 9310280080 931028 THE CONTINUING CRISIS AT IBM BY PAUL B CARROLL WHEN JIM MANZI TRIED TO VISIT THE CHAIRMAN OF INTERNATIONAL BUSINESS MACHINES CORP A FEW YEARS AGO HE FOUND THAT THE UPANDCOMING IBMERS ON THE CHAIRMAN'S STAFF HAD NEVER HEARD OF HIM EVEN THOUGH HE IS THE HIGHLY VISIBLE HEAD OF HUGE SOFTWARE MAKER LOTUS DEVELOPMENT CORP THAT INSULARITY HAS SUPPOSEDLY CHANGED AT IBM NOW THAT IT IS RUN BY LOU GERSTNER RECRUITED THIS SPRING AS THE FIRST OUTSIDER TO BE CHIEF EXECUTIVE OF IBM NOT SO IBM IS AS OBLIVIOUS AS EVER TO WHAT IS GOING ON OUTSIDE ITS WALLS WHEN BILL GATES CHAIRMAN OF MICROSOFT CORP AND POSTER BOY FOR THE COMPUTER INDUSTRY IN RECENT YEARS VISITED MR GERSTNER ONE OF MR GERSTNER'S ASSISTANTS GREETED HIM BY SAYING WELCOME MR MANZI MORE THAN SIX MONTHS AFTER MR GERSTNER ASSUMED THE TOP JOB HE HAS DONE REMARKABLY LITTLE TO CHANGE THE CULTURE AT IBM THAT'S ODD BECAUSE HE HAD BEEN EXPECTED TO CHANGE SO MUCH AND HE CERTAINLY HAD HIS CHANCES IBM'S PROBLEMS HAVE FINALLY CONVINCED ONE AND ALL THAT AN OVERHAUL IS NEEDED THE COMPANY WENT FROM THE BIGGEST PROFIT IN THE HISTORY OF PROFITMAKING ENTERPRISE IN 1984 66 BILLION TO A 5 BILLION LOSS IN 1992 AND THIS WEEK IT ANNOUNCED ITS FOURTH CONSECUTIVE QUARTERLY OPERATING LOSS IBM'S STOCK MARKET VALUE HAS LOST ALMOST 80 BILLION BY THE END OF NEXT YEAR IBM WILL BE DOWN NEARLY 200000 JOBS FROM ITS PEAK IN 1986 TO TAKE ADVANTAGE OF THE CRISIS AT IBM THOUGH MR GERSTNER NEEDED TO DO SOMETHING DRAMATIC EARLY ON HE DIDN'T AND IT REMAINS TO BE SEEN WHETHER HE WILL OR WHETHER ANYTHING HE DOES WILL HAVE THE KIND OF OOMPH IT WOULD HAVE HAD SIX MONTHS AGO IN THE MIDST OF ALL THE TURMOIL ASSOCIATED WITH HIS HIRING WHEN IBM SOLD ITS TYPEWRITER AND LASER PRINTER OPERATIONS IN LEXINGTON KY 2 1/2 YEARS AGO ONE OF THE FIRST THINGS THE NEW MANAGERS OF THOSE OPERATIONS DID WAS ENCASE THE IBM DEVELOPMENT MANUAL IN A BLOCK OF LUCITE AND PLACE IT IN THE MIDDLE OF THE PLANT FLOOR THAT WAY EVERYONE WOULD REMEMBER THE EVIL BOOK WHICH COULD TURN ONEYEAR PROJECTS INTO THREEYEAR PROJECTS BUT NO ONE COULD EVER OPEN IT AGAIN THE MANAGERS ALSO MADE SURE THAT EVERYONE'S PAY AT THE COMPANY DEPENDED MATERIALLY ON THE SUCCESS OF THE WHOLE COMPANY TO END THE INTRAMURAL BICKERING THAT HAMPERED SUCCESS UNDER IBM OWNERSHIP LO AND BEHOLD THE OPERATIONS BEGAN TO RECOVER FASTER THAN THE MANAGERS HAD BELIEVED POSSIBLE AT IBM THOUGH MR GERSTNER MOVED MORE CAUTIOUSLY RATHER THAN TIE LOTS OF PEOPLE'S PAY TO THE PERFORMANCE OF THE ENTIRE COMPANY HE DID THAT ONLY WITH THE TOP 11 PEOPLE HE SEEMED TO BE MAKING A STATEMENT EARLY ON WHEN HE ABOLISHED THE FOURPERSON MANAGEMENT COMMITTEE THE COMMITTEE HAD BEEN IBM'S VERSION OF THE SUPREME COURT RULING ON DISAGREEMENTS THAT COULDN'T BE SETTLED LOWER IN THE COMPANY THE COMMITTEE HAD ALSO BEEN A SYMBOL OF IBM'S SLOWNESS BECAUSE TRIVIAL DECISIONS SUCH AS WHETHER TO OFFER A SPECIAL PRICE TO A CUSTOMER MIGHT DRAG ON FOR MONTHS UNTIL THE MANAGEMENT COMMITTEE HANDED DOWN ITS RULING BUT ALL MR GERSTNER DID WAS REPLACE THE FOURPERSON COMMITTEE WITH AN 11PERSON COMMITTEE HE ABOLISHED THE CORPORATE MANAGEMENT BOARD AT WHICH THE TOP TWODOZEN PEOPLE WOULD GATHER TO KEEP AN EYE ON ONE ANOTHER BUT THEN HE ESTABLISHED A SIMILAR COMMITTEE MADE UP OF THREEDOZEN PEOPLE THE CHANGES DON'T FEEL LIKE PROGRESS TO LOTS OF PEOPLE INSIDE IBM IBM NEEDS FEWER COMMITTEES NOT BIGGER ONES MR GERSTNER HAS VOWED TO MAKE THE HARD PERSONNEL DECISIONS NEEDED TO TURN THE COMPANY AROUND BUT PEOPLE AT IBM'S LOWER LEVELS HAVING SEEN HALF THEIR COLLEAGUES WIPED OUT OVER THE PAST FEW YEARS ARE WAITING TO SEE WHETHER MR GERSTNER WILL DO ANYTHING ABOUT THE SENIOR PEOPLE STILL WITH IBM WHO HELPED GET IT INTO ITS FIX WHAT THEY SEE INSTEAD IS THAT BERNARD PUCKETT HAS BECOME MR GERSTNER'S CHIEF STRATEGIST EVEN THOUGH MR PUCKETT RAN THE MAINFRAME BUSINESS IN 1990 AND PUT IT ON A STRATEGY THAT HAD IT FALLING APART IN 1991 IBMERS ALSO SEE THAT NED LAUTENBACH STILL RUNS IBM'S HUGE OVERSEAS OPERATIONS EVEN THOUGH HE FAILED UPWARD THROUGH A SERIES OF JOBS IN THE 1980S AND PRESIDED OVER IBM'S ASIAN OPERATIONS WHILE THEY FELL INTO DISARRAY IN THE EARLY 1990S SO FAR MR GERSTNER HAS BROUGHT IN JUST THREE MAJOR OUTSIDERS ONE TO RUN FINANCE ONE IN CHARGE OF PERSONNEL AND ONLY ONE TO OPERATE ONE OF IBM'S MANY BUSINESSES MR GERSTNER MAY BE MOVING AS FAST AS HE CAN BUT HE NEEDS TO MOVE FASTER THE COMPUTER BUSINESS ISN'T LIKE MOST PRODUCT GENERATIONS OFTEN LAST LESS THAN A YEAR AND A HALF SOME ENTIRE PRODUCT LINES TURN OVER EVERY YEAR SOME IN JUST SIX MONTHS SO MR GERSTNER WILL LET THE COMPANY SLIDE FOR A GENERATION OR TWO OF PRODUCTS IF HE'S NOT CAREFUL MR GERSTNER HAS INSISTED THAT HE DOESN'T NEED TO ARTICULATE A VISION A FAMOUS STATEMENT THAT HAS SOME INSIDE IBM REFERRING TO HIS NONVISION VISION BUT HE DOES NEED TO OFFER AT LEAST SOME GUIDANCE TO CUSTOMERS ABOUT WHERE HE'S GOING IN PARTICULAR MR GERSTNER NEEDS TO EXPLAIN IBM'S MAINFRAME PLANS BECAUSE AT THE MOMENT THE BUSINESS SEEMS TO BE GOING DOWN THE TUBES SALES OF MAINFRAMES AND PERIPHERAL EQUIPMENT HAVE FALLEN TO 8 BILLION IN 1993 FROM 19 BILLION IN 1990 AND APPEAR TO BE STILL IN FREE FALL SO MUCH DAMAGE HAS BEEN DONE TO IBM'S ONCE IMPECCABLE CREDIBILITY AND TO THE IMAGE OF THE MAINFRAME THAT CHIEF EXECUTIVES ONCE WILLING TO SIGN 20 MILLION CHECKS TO BUY THE BIG COMPUTERS NOW WONDER WHETHER THEY WILL BE THE LAST PERSON IN THE WORLD TO BUY AN IBM MAINFRAME THE MAIN PROBLEM IS THAT THE MARKETING PEOPLE ARE FILIBUSTERING BECAUSE THEY'RE AFRAID THAT TALKING TOO MUCH ABOUT THE FUTURE WILL HURT THEIR FOURTH QUARTER EVEN THOUGH THE FOURTH QUARTER IS ALREADY GOING TO BE LOUSY YET SOMETHING NEEDS TO BE DONE SOON TO KEEP MAINFRAME CUSTOMERS FROM DEFECTING FURTHER MR GERSTNER OBVIOUSLY COULD INSIST BUT HE'S BEING CAUTIOUS THE OLD IBM WINS OUT AGAIN ALL MR GERSTNER HAS OFFERED IN THE WAY OF VISION SO FAR IS TO SAY THAT IBM WILL SELL SOLUTIONS NOT JUST PUSH HARDWARE AND WILL DO WHATEVER THE CUSTOMER WANTS THOSE ARE PRECISELY THE WRONG THINGS TO SAY BY 1987 EVERY COMPUTER COMPANY INSISTED THAT IT SOLD SOLUTIONS THE BROMIDE NO LONGER MEANS ANYTHING EVEN WORSE IS THE IDEA OF DOING WHAT THE CUSTOMER WANTS THAT IDEA LET IBM EXECUTIVES AVOID MAKING DECISIONS IN THE LATE 1980S AND EARLY 1990S AT THE END OF MEETINGS CALLED TO ANTICIPATE CUSTOMER NEEDS AND MAKE A BET ON A TECHNOLOGY AN EXECUTIVE WOULD SAY WE'LL DO WHATEVER THE CUSTOMER WANTS AND LEAVE THE ROOM WITHOUT MAKING A DECISION TRYING TO LISTEN TO CUSTOMERS MADE IBM TOO PASSIVE AND CLEARED THE WAY FOR COMPANIES LIKE COMPAQ COMPUTER CORP TO ANTICIPATE TECHNOLOGY TRENDS AND COME OUT WITH SAY A TINY NOTEBOOK COMPUTER EVEN BEFORE CUSTOMERS KNEW THEY WANTED ONE MR GERSTNER MAY JUST BE STALLING FOR TIME WHILE HE TRIES TO COME UP WITH A VISION BUT HE'D BETTER HURRY MR CARROLL IS THE AUTHOR OF BIG BLUES THE UNMAKING OF IBM PUBLISHED IN SEPTEMBER BY CROWN HE IS CURRENTLY THE JOURNAL'S MEXICO CITY BUREAU CHIEF 9310280079 931028 RESTAURANTS WIN TENTATIVE VICTORY ON TAX LANGUAGE BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE RESTAURANT INDUSTRY HOPING TO SWEETEN A 1 BILLION TAX BREAK IN THIS YEAR'S BUDGET LAW HAS TENTATIVELY PERSUADED HOUSE TAXWRITERS TO DROP PLANS TO CLARIFY THE NOWAMBIGUOUS PROVISION THE HOUSE WAYS AND MEANS COMMITTEE MET PRIVATELY TO CONSIDER A VARIETY OF MEASURES AIMED AT FIXING MISTAKES OR CLEARING UP LANGUAGE IN THE TAX BILL PASSED LAST AUGUST BUT REPS WILLIAM JEFFERSON D LA AND DON SUNDQUIST R TENN ACTING FOR THE RESTAURANT LOBBY ARGUED AGAINST A CHANGE THAT WOULD AFFECT THE RESTAURANT OWNERS' BREAK THE PANEL TENTATIVELY PLANS TO VOTE NEXT WEEK ON THE PACKAGE OF CORRECTIONS AT ISSUE IS A PROVISION GIVING RESTAURANTS A TAX CREDIT FOR PAYROLL TAXES PAID ON THEIR EMPLOYEES' TIP INCOME THE CHANGE THAT THE WAYS AND MEANS COMMITTEE YESTERDAY CONSIDERED BUT DROPPED WOULD MAKE CLEAR THAT THE CREDIT APPLIES TO TIP INCOME EARNED BY EMPLOYEES STARTING IN 1994 BY LEAVING THE PROVISION AMBIGUOUS RESTAURANTS CAN INTERPRET THE PROVISION TO GIVE THEM TAX CREDITS FOR 1993 AS WELL IN ADDITION TAX EXPERTS ARGUE THE INDUSTRY'S READING OF THE LAW COULD DISCOURAGE RESTAURANTS FROM SETTLING CURRENT DISPUTES WITH THE INTERNAL REVENUE SERVICE UNTIL AFTER YEAR'S END RESTAURANTS COULD THEN CLAIM A TAX CREDIT FOR ANY SETTLEMENT PAID IN 1994 EVEN THOUGH THE PAYMENT COVERED TAX LIABILITIES GOING BACK AS FAR AS THE LATE 1980S BUT SUCH A READING CRITICS ARGUE WOULD REWARD RESTAURANTS THAT ADMITTEDLY UNDERREPORTED THEIR TAXES THE INDUSTRY POSITION WOULD COST UNQUANTIFIED REVENUES BEYOND THE 1 BILLION THAT THE RESTAURANT PROVISION IS PROJECTED TO LOSE IN THE NEXT FIVE YEARS BUT THE IRS IS EXPECTED TO CONTEST THE MOREGENEROUS READING OF THE LAW SO IT ISN'T CLEAR THAT IN THE END THE INDUSTRY WOULD WIN ANYTHING BY LEAVING THE LAW UNCLEAR REP JEFFERSON SAID HE WAS CONTACTED BY THE NATIONAL RESTAURANT ASSOCIATION AND BY RESTAURANT AND TOURISM OFFICIALS IN NEW ORLEANS WHO URGED THAT THE LAW REMAIN UNCHANGED IN AN INTERVIEW HE ARGUED THAT CONGRESS ALWAYS INTENDED THAT THE TAX CREDIT APPLY TO PAYROLL TAXES ON TIPS STARTING THIS YEAR NOT IN 1994 I KNOW THE SECTION MEANT WHAT IT SAID HE INSISTED BUT CONGRESS'S JOINT COMMITTEE ON TAXATION IN TWO SEPARATE REPORTS EXPLAINING THE TAX BILL SAID THE CREDIT IS INTENDED TO APPLY TO RESTAURANT EMPLOYEES' TIPS EARNED IN 1994 AND LATER BOTH REPORTS SAID THE CREDIT IS FOR PAYROLL TAXES PAID WITH RESPECT TO SERVICES PERFORMED AFTER DEC 31 1993 9310280078 931028 WHO'S NEWS PUBLIC SERVICE CO OF NEW MEXICO PUBLIC SERVICE CO OF NEW MEXICO ALBUQUERQUE NM BEN MONTOYA 58YEAROLD PRESIDENT OF THIS UTILITY COMPANY WAS ELECTED A DIRECTOR BECOMING THE BOARD'S ONLY MANAGEMENT REPRESENTATIVE HE SUCCEEDS CLAUDE E LEYENDECKER 70 CHAIRMAN OF UNITED NEW MEXICO BANK AT MIMBRES VALLEY WHO RETIRED 9310280077 931028 POLITICS & POLICY US ISSUES GUIDELINES ON DERIVATIVES' OBLIGING BANKS TO MULL CUSTOMER NEEDS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE COMPTROLLER OF THE CURRENCY ISSUED RISKMANAGEMENT GUIDELINES THAT IMPOSE A NEW OBLIGATION ON BANKS TO MAKE SURE THAT SOCALLED DERIVATIVE PRODUCTS ARE APPROPRIATE FOR THEIR CUSTOMERS THE STANDARD WASN'T NEARLY AS RIGID AS THE SUITABILITY RULES THAT APPLY TO SECURITIES FIRMS NONETHELESS IT WAS AN UNEXPECTED PART OF THE FIRST FORMAL FEDERAL GUIDANCE ON THE USE AND CONTROL OF DERIVATIVES BY BANKS DERIVATIVES ARE COMPLEX HEDGING INSTRUMENTS THAT BANKS BROKERS AND THEIR CUSTOMERS USE TO DEFRAY THE RISK OF CHANGES IN INTEREST RATES STOCK PRICES FOREIGNEXCHANGE RATES AND COMMODITIES PRICES DERIVATIVES ARE LUCRATIVE FOR THE BANKS BROKERS AND INSURANCE COMPANIES THAT DESIGN THEM AND PARTICIPANTS IN THE RAPIDLY EXPANDING MARKET ARE NERVOUS ABOUT NEW REGULATIONS ONE BANKING LAWYER CALLED THE SUGGESTION OF A SUITABILITY STANDARD BAD NEWS BECAUSE IT COULD LEAD TO THE IMPOSITION OF NEW RECORDKEEPING REQUIREMENTS ON BANKS THE COMPTROLLER'S GUIDANCE OUTLINES A SERIES OF STEPS THAT BANKS STARTING WITH THEIR TOP MANAGEMENT AND BOARD SHOULD TAKE TO UNDERSTAND MONITOR AND CONTROL THE POTENTIAL RISK OF DERIVATIVES MUCH OF THE GUIDANCE TRACKS CURRENT PRACTICES AND INCORPORATES THE JULY RECOMMENDATIONS OF THE GROUP OF THIRTY A FINANCIAL INDUSTRY GROUP HEADED BY FORMER FEDERAL RESERVE BOARD CHAIRMAN PAUL VOLCKER BUT THE GUIDANCE ISSUED TO 3700 NATIONALLY CHARTERED BANKS GOES CONSIDERABLY BEYOND THE GROUP OF THIRTY RECOMMENDATIONS IN SEVERAL RESPECTS INCLUDING THE INSTRUCTIONS THAT BANKS UNDERSTAND WHAT SORT OF DERIVATIVE TRANSACTIONS ARE APPROPRIATE FOR THEIR CUSTOMERS THE COMPTROLLER SAID THAT WHEN BANKS EVALUATE THE CREDIT RISKS POSED BY DERIVATIVE TRANSACTIONS THEY SHOULD UNDERSTAND THE APPLICABILITY OF FINANCIAL DERIVATIVES INSTRUMENTS TO THE RISKS THE BANK CUSTOMER IS ATTEMPTING TO MANAGE A LOT OF THE CONCERNS THAT HAVE BEEN EXPRESSED ABOUT THE DERIVATIVES MARKET HAVE FOCUSED ON THE SOPHISTICATION OF THE END USERS AND WHETHER THEY UNDERSTAND THE RISK EXPLAINED DOUGLAS HARRIS WHO ADVISES COMPTROLLER EUGENE LUDWIG ON DERIVATIVES UNLIKE SECURITIES FIRMS BANKS WON'T HAVE TO TAKE SPECIAL STEPS TO LEARN WHAT THE INVESTMENT GOALS OF THEIR CUSTOMERS ARE HE SAID BUT HE SAID THAT BANKS SHOULD HAVE A GENERAL IDEA OF WHAT IS APPROPRIATE AND WHAT ISN'T FOR CUSTOMERS AS AN EXAMPLE HE SAID IT WOULDN'T BE APPROPRIATE FOR A SMALL BANK IN AN AGRICULTURAL AREA TO START ENGAGING IN COMPLEX DERIVATIVES TIED TO FOREIGN CURRENCY RATES IF A CUSTOMER WANTS TO ENTER A DERIVATIVES TRANSACTION THAT THE BANK BELIEVES IS INAPPROPRIATE THE BANK CAN PROCEED WITH THE TRANSACTION AS LONG AS IT INFORMS THE CUSTOMER OF ITS DOUBTS AND DOCUMENTS ITS DECISION WE'RE TRYING TO STAY AWAY FROM MICROMANAGING THE BANK MR HARRIS EXPLAINED THE AGENCY ISSUED THE GUIDELINES ON THE EVE OF A HOUSE BANKING COMMITTEE HEARING TODAY ON THE SAFETY AND SOUNDNESS OF DERIVATIVES THE COMPLEXITY AND SIZE OF THE DERIVATIVES MARKET HAS STIRRED POLITICAL CONCERN THAT A GLITCH IN THE MARKET COULD RATTLE THE BANKING SYSTEM THE FACE AMOUNT OF DERIVATIVE PRODUCTS IS 14 TRILLION BY SOME ESTIMATES THOUGH THE AMOUNT AT RISK IS A TINY FRACTION OF THAT YESTERDAY FRANK NEWMAN TREASURY UNDERSECRETARY FOR DOMESTIC FINANCE TOLD A CONFERENCE ON DERIVATIVES THAT CONCERNS THAT DERIVATIVES COULD PERPETRATE A FINANCIAL MELTDOWN ARE OVERBLOWN THE DERIVATIVES MARKET IS DOMINATED BY A FEW VERY WELLCAPITALIZED FIRMS INCLUDING JP MORGAN & CO BANKERS TRUST NEW YORK CORP AND MERRILL LYNCH & CO THE COMPTROLLER'S GUIDANCE WHICH WILL BE SUPPLEMENTED BY MOREDETAILED INSTRUCTIONS TO BANK EXAMINERS CONTAINS ONE POTENTIALLY SIGNIFICANT CHANGE IN BANK POWERS IT SAID THAT BANKS MAY BUY AND SELL COMMODITIES SUCH AS CORN AND OTHER AGRICULTURAL PRODUCTS IF SUCH TRANSACTIONS ARE NECESSARY TO MANAGE THE RISK OF DERIVATIVES CURRENTLY NATIONALLY CHARTERED BANKS ARE PROHIBITED FROM BUYING AND SELLING AGRICULTURAL AND OTHER COMMODITIES EXCEPT PRECIOUS METALS UNDER SOME CIRCUMSTANCES BUT THE GUIDANCE MAKES IT CLEAR THAT BANKS WON'T BE ABLE TO SPECULATE IN COMMODITIES AND CAN ONLY BUY AND SELL UNDER CONTROLLED CONDITIONS A NATIONAL BANK MUST FIRST DEVELOP A DETAILED PLAN WHICH SHOULD BE APPROVED BY THE BANK'S BOARD OF DIRECTORS AND THE SUPERVISORY STAFF OF THE COMPTROLLER'S OFFICE THE GUIDANCE SAID ALTHOUGH THE COMPTROLLER WAS THE FIRST AGENCY TO ISSUE FORMAL GUIDANCE THE FEDERAL RESERVE IS TESTING NEW EXAMINATION PROCEDURES FOR BANKS THAT ENGAGE IN DERIVATIVE TRANSACTIONS BANKING REGULATORS ARE DEVELOPING NEW ACCOUNTING RULES FOR DERIVATIVES 9310280076 931028 ENTERPRISE THE CLINTON HEALTH PLAN WHAT SMALLBUSINESS OWNERS FACE UNDER HEALTH PLAN NUMBER OF EMPLOYEES FAMILY RELATIONSHIPS WILL PLAY A KEY ROLE BY EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ON THE MORNING AFTER THE OFFICIAL UNVEILING OF PRESIDENT CLINTON'S MASSIVE HEALTHCARE LEGISLATION SMALLBUSINESS OWNERS WILL BE FACING A SINGLE QUESTION WHAT DO I DO THE SIMPLE ANSWER NOTHING FOR NOW BUT STAY TUNED THE PLAN NATURALLY IS SUBJECT TO GREAT CHANGE OR EVEN DEFEAT IN CONGRESS IN ANY EVENT THE ADMINISTRATION SAYS IT WILL TAKE THREE YEARS OF GROUNDWORK TO PROVIDE HEALTH COVERAGE UNDER THE NEW PLAN FOR EVEN THE FIRST 15 OF THE US POPULATION WHILE THE PROGRAM COULD BEGIN IN SOME STATES AS EARLY AS 1996 COVERAGE FOR ALL AMERICANS ISN'T EXPECTED UNTIL JAN 1 1998 AND WITH CONGRESSIONAL DEBATE OVER THE PLAN LIKELY TO LAST FOR MONTHS THE STARTUP IN MANY STATES COULD TAKE EVEN LONGER WHILE THE FINAL FORM OF ANY NEW HEALTHCARE PLAN IS UNCERTAIN MR CLINTON'S HEALTH SECURITY ACT IS LIKELY TO FORM THE FRAMEWORK FOR A POLICY THAT WILL AFFECT EVERY SMALL EMPLOYER AND SELFEMPLOYED PERSON IN THE NATION THE BILL THAT THE WHITE HOUSE PRESENTED YESTERDAY IS THE MOST DETAILED AND DEFINITIVE VERSION OF THE PLAN YET HERE ARE THE BASICS OF HOW IT WOULD WORK ALL EMPLOYERS WOULD BE REQUIRED TO PAY AT LEAST 80 OF A BASIC HEALTH INSURANCE PACKAGE FOR FULLTIME EMPLOYEES WORKERS WOULD PAY UP TO THE REMAINING 20 THROUGH PAYROLL DEDUCTIONS PARTTIME WORKERS WOULD BE COVERED BY SMALLER EMPLOYER CONTRIBUTIONS LOWWAGE BUSINESSES WITH 75 OR FEWER EMPLOYEES WOULD RECEIVE SUBSTANTIAL SUBSIDIES ON THE PRICE OF INSURANCE DEPENDING ON THE SIZE OF THE COMPANY AND THE AVERAGE WAGE THAT IS A CHANGE FROM EARLIER VERSIONS OF THE PLAN WHICH HAD SAID THE FINANCIAL ASSISTANCE WOULD APPLY ONLY TO FIRMS WITH 50 OR FEWER WORKERS A WHITE HOUSE BRIEFING PAPER ACCOMPANYING THE BILL SAYS FOR THE SMALLEST FIRMS THAT PAY THE LOWEST WAGES SUCH AS RESTAURANTS THE PERCENT OF PAYROLL DEVOTED TO HEALTH CARE MAY BE AS LOW AS 35 THAT AMOUNTS TO 350 A YEAR PER WORKER FOR A COMPANY WITH AVERAGE WAGES OF 10000 OR LESS THAN 1 A DAY PER EMPLOYEE TO GET THE PLAN ROLLING EVERY EMPLOYER WOULD BE REQUIRED TO SUBMIT EMPLOYEE NAMES SOCIAL SECURITY NUMBERS FAMILY STATUS AND WAGES THE INFORMATION WOULD BE COLLECTED BY A HEALTH ALLIANCE IN THE EMPLOYER'S STATE ALLIANCES WOULD BE THE ENGINES THAT DRIVE THE CLINTON HEALTH PLAN THEY WOULD NEGOTIATE THE TERMS OF HEALTH COVERAGE BY INSURERS AND BILL COMPANIES FOR THEIR CONTRIBUTIONS EACH STATE WOULD HAVE AT LEAST ONE ALLIANCE AND POPULOUS STATES MIGHT HAVE SEVERAL ALLIANCES WOULD BILL EMPLOYERS MONTHLY OR QUARTERLY AND THE BILL WOULD BE ADJUSTED FOR CHANGES IN EMPLOYMENT LEVELS AND HOURS WORKED THE WHITE HOUSE SAYS IT HAS TRIED TO SIMPLIFY BOOKKEEPING FOR EMPLOYERS BY REQUIRING ALLIANCES TO LEVY A FIXED CONTRIBUTION FOR EACH EMPLOYEE CATEGORY SINGLE PERSON COUPLE SINGLE PARENT AND TWOPARENT FAMILY WITH CHILDREN THERE WILL BE ONE EMPLOYER PRICE FOR FAMILY POLICIES REGARDLESS OF WHETHER BOTH SPOUSES WORK OR HOW MANY CHILDREN THEY HAVE THE CLINTON BRIEFING PAPER SAYS IN CASES OF TWOINCOME COUPLES BOTH EMPLOYERS WILL PAY THE PRICE HERE ARE TWO EXAMPLES PROVIDED BY THE WHITE HOUSE ILLUSTRATING HOW THE CLINTON PLAN WOULD AFFECT SMALL EMPLOYERS MR AND MRS JONES WHO HAVE TWO CHILDREN OWN A FLOWER SHOP THEY HAVE THREE EMPLOYEES MATT JANE AND SCOTT MATT IS A 16YEAROLD HIGH SCHOOL STUDENT WHO WORKS PARTTIME AFTER SCHOOL JANE AND SCOTT WORK FULL TIME THE SHOP'S AVERAGE PAYROLL WHICH INCLUDES THE JONESES' SALARY IS 17000 PER YEAR PER WORKER WITHOUT FIGURING IN SUBSIDIES THE FLOWER SHOP WOULD PAY THE EMPLOYER SHARE OF 1546 EACH FOR SCOTT AND JANE FOR A SINGLEPERSON POLICY AND 2479 EACH FOR MR AND MRS JONES FOR A TWOPARENT POLICY A TOTAL OF 8050 BUT SUBSIDIES FOR SMALL BUSINESS WOULD LIMIT THE SHOP'S CONTRIBUTION FOR EACH EMPLOYEE TO 53 OF THE AVERAGE PAYROLL THE SHOP WOULD PAY NO MORE THAN 901 A YEAR FOR EACH WORKER FOR ALL FOUR WORKERS AND THEIR DEPENDENTS THE COST WOULD TOTAL NO MORE THAN 3604 A YEAR BECAUSE MATT WOULD BE COVERED UNDER HIS PARENT'S POLICY THE FLOWER SHOP WOULDN'T CONTRIBUTE TOWARD HIS HEALTH INSURANCE IN ADDITION TO WHAT THEY PAY AS OWNERS OF THE SHOP MR AND MRS JONES WOULD PAY THE EMPLOYEE SHARE OF THEIR FAMILY POLICY 872 A YEAR IF THEY ENROLLED IN AN AVERAGEPRICED PLAN TOTALING THE EMPLOYEE SHARE AND THE EMPLOYER SHARE MR AND MRS JONES WOULD HAVE FAMILY COVERAGE FOR 2674 A YEAR THE TOTAL INSURANCE BILL 4476 CONSISTING OF 2674 FOR THE JONES FAMILY COVERAGE AND 901 EACH FOR JANE AND SCOTT SUSAN ADDINGTON IS A SINGLE PARENT LIVING IN VIRGINIA SHE IS SELFEMPLOYED WITH AN INCOME OF 40000 A YEAR FOR THE FAMILY SHARE OF HER PREMIUM FOR AN AVERAGEPRICED PLAN SUSAN WOULD PAY 20 OF THE 3893 ANNUAL PREMIUM FOR A SINGLE PARENT FAMILY OR 779 A YEAR SHE WOULD ALSO PAY THE EMPLOYER SHARE FOR A SINGLE PARENT OR 2479 FOR A TOTAL OF 3258 A YEAR OR 272 A MONTH AND SHE WOULD BE ABLE TO DEDUCT 100 OF THE PREMIUM FROM HER TAXABLE INCOME CURRENTLY SELFEMPLOYED PERSONS CAN ONLY DEDUCT 25 OF THEIR HEALTH COSTS THE FINAL REQUIREMENTS WILL DEPEND ON WHAT IF ANY BILL EVENTUALLY EMERGES FROM CONGRESS ALTERNATIVE BILLS PROPOSED BY THE REPUBLICANS AND SOME MODERATE DEMOCRATS WOULDN'T REQUIRE COMPANIES TO PROVIDE HEALTH COVERAGE FOR EMPLOYEES 9310280075 931028 MANAGEMENT MANY FIRMS SEEKING NEW CHIEFS DON'T LOOK BEYOND BOARDROOM BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL EXECUTIVES YEARNING FOR THE TOP JOBS AT THEIR COMPANIES INCREASINGLY FACE UNFORESEEN COMPETITORS OUTSIDE DIRECTORS BOARD SEATS HAVE BECOME STEPPINGSTONES TO TOP JOBS IN RECENT MONTHS THE TREND REFLECTS A GROWING NUMBER OF BOARDROOM COUPS GREATER DEMAND FOR INDEPENDENT DIRECTORS WITH GOOD BUSINESS SKILLS AND BOARDS' INCREASED WILLINGNESS TO LOOK OUTSIDE CURRENT MANAGEMENT FOR NEW TALENT SIX OF THE 51 NEW CHIEF EXECUTIVES CHOSEN BY MAJOR INDUSTRIAL COMPANIES DURING THE FIRST HALF OF 1993 PREVIOUSLY HAD BEEN OUTSIDE DIRECTORS AT THOSE BUSINESSES SAYS EUGENE JENNINGS A BOARD CONSULTANT AND MICHIGAN STATE UNIVERSITY EMERITUS PROFESSOR OF MANAGEMENT THAT FIGURE NEARLY EQUALS THE SEVEN SUCH APPOINTMENTS IN ALL OF 1992 AND PORTENDS A RECORD HIGH FOR THE YEAR HE NOTES WE SEEM TO BE USING BOARDS MORE AS A TRAINING GROUND FOR OUR FUTURE CHIEFS FRESH EXAMPLES KEEP POPPING UP LAST WEEK FHP INTERNATIONAL CORP A MANAGEDCARE AND INSURANCE CONCERN NAMED AN OUTSIDE DIRECTOR COCHIEF EXECUTIVE AND PRESIDENT IN AUGUST AEROSPACEMATERIALS MAKER HEXCEL CORP TAPPED TWO OUTSIDE BOARD MEMBERS TO BE COCHIEF EXECUTIVES AND IN JULY GIDDINGS & LEWIS INC A BIG MACHINETOOL MANUFACTURER REPLACED ITS CHAIRMAN AND CEO WITH A BOARD OUTSIDER AT THE SAME TIME SOME HEADHUNTERS SAY CORPORATE CLIENTS HAVE BEGUN TO DEMAND OUTSIDE DIRECTORS WITH THE POTENTIAL TO SUCCEED THE COMPANIES' CHIEF EXECUTIVES NEW YORK RECRUITER E PENDLETON JAMES RECEIVED HIS FIRST SUCH ASSIGNMENT TWO YEARS AGO AND HAS SINCE FILLED SIMILAR BOARD SLOTS FOR TWO OTHER COMPANIES HOWEVER MOST BOARDS CROWNING A FELLOW MEMBER ACT OUT OF CRISIS AT HEXCEL A DEFENSE CONTRACTOR HURT BY MILITARY SPENDING CUTBACKS DIRECTORS OUSTED ROBERT L WITT THE COMPANY CHAIRMAN AND CHIEF EXECUTIVE LAST SUMMER AFTER OBJECTING TO THE WAY HE WAS RESTRUCTURING THE COMPANY DONALD J O'MARA THE CONCERN'S PRESIDENT AND CHIEF OPERATING OFFICER LACKED ENOUGH EXPERIENCE TO REPLACE MR WITT BOARD MEMBERS SAY BUT HEXCEL COULD ILL AFFORD TO SPEND TWO OR THREE MONTHS TRYING TO FIND THE RIGHT PERSON FROM OUTSIDE BECAUSE IT ALREADY WAS IN DEFAULT ON ITS LOAN AGREEMENT RECALLS JOHN J LEE AN INVESTOR AND OUTSIDE DIRECTOR YOU CAN'T PUT AN UNSTABLE BUSINESS INTO SUSPENDED ANIMATION WHILE YOU GO FIND SOMEONE TO COME AND RUN IT HE EMPHASIZES MR LEE SAYS HE AND ANOTHER OUTSIDE DIRECTOR JOHN L DOYLE PROPOSED THAT THEY JOINTLY RUN HEXCEL AFTER THE BOARD SPLIT OVER WHICH OF THE TWO SHOULD BE THE NEW CEO MR LEE ALSO BECAME CHAIRMAN LAST MONTH HEXCEL EXPANDED ITS RESTRUCTURING EFFORTS BY ANNOUNCING A THIRDQUARTER CHARGE OF 50 MILLION NEW LAYOFFS AND PLANS TO CUT CAPACITY OUTSIDE DIRECTORS WHO BECOME CHIEF EXECUTIVES SAY THEIR BOARD EXPERIENCE GREATLY SHORTENED THEIR LEARNING CURVE ONCE THEY TOOK CHARGE I'VE PROBABLY MADE A NUMBER OF CHANGES MORE QUICKLY THAN I OTHERWISE WOULD HAVE DONE OBSERVES RANDALL TOBIAS THE NEW CHAIRMAN AND CEO OF PHARMACEUTICAL GIANT ELI LILLY & CO A LILLY OUTSIDE DIRECTOR SINCE 1986 HE PREVIOUSLY WAS A VICE CHAIRMAN OF AMERICAN TELEPHONE & TELEGRAPH CO MR TOBIAS MET WITH WALL STREET SECURITIES ANALYSTS ON JULY 20 JUST THREE WEEKS AFTER HE ASSUMED COMMAND OF LILLY WHICH HAS RECENTLY SUFFERED DISAPPOINTING EARNINGS AND OTHER SETBACKS I'M NOT SURE I WOULD HAVE HAD THE CONFIDENCE TO DO THAT IF I HADN'T COME TO LILLY KNOWING THE PEOPLE AND THE SITUATION THE 51YEAROLD CHIEF EXECUTIVE SAYS THIS MONTH MR TOBIAS UNVEILED PLANS TO BROADLY SHAKE UP THE ONCESTAID DRUG MAKER STARTING WITH 4000 JOB CUTS THROUGH EARLY RETIREMENTS AND REASSIGNMENTS AT GOODYEAR TIRE & RUBBER CO OUTSIDE DIRECTOR STANLEY GAULT WAS NAMED CHAIRMAN AND CEO IN 1991 AND LED THE REJUVENATION OF THE COMPANY THE IMPACT OF MR GAULT WHO HAD PREVIOUSLY RETIRED AS CHAIRMAN OF RUBBERMAID INC HAS BEEN REFLECTED ON THE BOTTOM LINE IN A VERY SHORT PERIOD OF TIME AND VERY DRAMATICALLY SAYS GG MICHELSON A GOODYEAR OUTSIDE DIRECTOR BUT IN SOME CASES AN OUTSIDE DIRECTOR'S LINKS WITH PRIOR MANAGEMENT RAISE DOUBTS ABOUT HIS OR HER INDEPENDENCE AS NEW CEO THE ISSUE AROSE LAST SUMMER WHEN JEFFREY C BARBAKOW BECAME CHAIRMAN AND CEO OF NATIONAL MEDICAL ENTERPRISES INC AFTER COFOUNDERS RICHARD K EAMER AND LEONARD COHEN RESIGNED UNDER PRESSURE FROM THE BELEAGUERED HOSPITAL CHAIN MR BARBAKOW AN OUTSIDE BOARD MEMBER SINCE 1990 IS A LONGTIME FRIEND OF MR EAMER'S AS A MANAGING DIRECTOR OF DONALDSON LUFKIN & JENRETTE MR BARBAKOW ALSO WAS AN INVESTMENT BANKER FOR NATIONAL MEDICAL TODD RICHTER AN ANALYST AT DEAN WITTER DISCOVER & CO INITIALLY WORRIED THAT MR BARBAKOW MIGHT BE AN EAMER PUPPET BECAUSE HE DOES HAVE A TIE TO THE MANAGEMENT TEAM THAT GOT THE COMPANY IN TROUBLE IN THE FIRST PLACE THE US GOVERNMENT HAS LAUNCHED A CRIMINAL INVESTIGATION OF NATIONAL MEDICAL AND INSURERS HAVE SUED THE COMPANY FOR ALLEGEDLY FILING FRAUDULENT CLAIMS MR BARBAKOW OVERCAME ANALYSTS' FEARS BY DISTANCING HIMSELF FROM HIS PREDECESSOR I AM NOT WORRIED ABOUT THAT QUESTION MARK OF THE EAMER FRIENDSHIP HE INSISTS THE RECORD SPEAKS FOR ITSELF WE ARE TRYING TO MAKE THE RIGHT DECISIONS TRANSPLANTS FROM THE BOARDROOM TO THE EXECUTIVE SUITE DON'T ALWAYS WORK OUT THIS MONTH LAWRENCE GORDON ABRUPTLY STEPPED DOWN AS CHIEF OPERATING OFFICER OF DOMINO'S PIZZA INC A POST HE HAD HELD SINCE JANUARY HE DEPARTED ABOUT A YEAR AFTER JOINING THE DOMINO'S BOARD THE 71YEAROLD TURNAROUND SPECIALIST SAYS THOMAS S MONAGHAN DOMINO'S FOUNDER AND CEO FIRED HIM ONE SATURDAY AFTERNOON WHILE HE WAS HOME ALONE WATCHING A TELEVISED FOOTBALL GAME MR MONAGHAN FELT THERE WERE DIFFERENCES IN OUR METHODOLOGY AND THAT HE WOULD LIKE TO END THE RELATIONSHIP MR GORDON RECOLLECTS WITH DISMAY MR MONAGHAN DISAGREES WITH THAT ACCOUNT MR GORDON'S WORK IN SPEARHEADING THE FINANCIAL RESTRUCTURING OF DOMINO'S WAS LARGELY COMPLETED A SPOKESMAN SAYS TOM WISHED HIM WELL AND FELT HE DID A GOOD JOB 9310280074 931028 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 AIM MANAGEMENT GROUP 110 MILLION OF SENIOR SECURED NOTES DUE NOV 15 2003 PRICED AT PAR TO YIELD 9 THE ISSUE WHICH IS CALLABLE AFTER FIVE YEARS WAS PRICED AT A SPREAD OF 361 BASIS POINTS ABOVE TREASURYS RATED BA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NEWCITY COMMUNICATIONS INC 75 MILLION OF SENIOR SUBORDINATED NOTES DUE NOV 1 2003 PRICED AT PAR TO YIELD 11375 ACCORDING TO MCM CORPORATEWATCH THE ISSUE WHICH IS NONCALLABLE FOR FIVE YEARS IS RATED SINGLEB3 BY MOODY'S AND SINGLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO OMI CORP 170 MILLION OF SENIOR NOTES DUE NOV 1 2003 PRICED AT PAR TO YIELD 1025 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB1 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PNC BANK NA 500 MILLION OF BANK NOTES DUE NOV 3 1994 PRICED AT PAR FOR A BONDEQUIVALENT YIELD OF 3547 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 95 BASIS POINTS ABOVE TREASURY BILLS RATED DOUBLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC PITTSBURGH NATIONAL IS A UNIT OF PNC BANK CORP SONOCO PRODUCTS CO 100 MILLION OF NOTES DUE NOV 1 2003 PRICED AS 5875S AT 99329 TO YIELD 5965 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 53 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY M'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC WELLS FARGO & CO 250 MILLION OF SUBORDINATED NOTES DUE NOV 1 2003 PRICED AS 6125S AT 9945 TO YIELD 62 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 77 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC MASLAND HOLDINGS INC INITIAL OFFERING OF 11446474 COMMON SHARES PRICED AT 17 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO TEXACO CAPITAL LIMITED LIFE CORP 350 MILLION OF CUMULATIVE GUARANTEED MONTHLY INCOME PREFERRED SHARES PRICED WITH 6875 DIVIDEND YIELD ACCORDING TO MCM CORPORATEWATCH THE SHARES WERE PRICED AT 25 EACH THE ISSUE WHICH IS CALLABLE AFTER FIVE YEARS WAS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P AND WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO CBL & ASSOCIATES PROPERTIES INC INITIAL OFFERING OF 153 MILLION COMMON SHARES PRICED AT 1950 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO HAWAII 100 MILLION DEPARTMENT OF REVENUE SPECIALPURPOSE REVENUE BONDS TENTATIVELY PRICED BY A SMITH BARNEY SHEARSON INC GROUP TO YIELD 559 IN 2023 THE BONDS ARE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE BONDS WHICH MATURE NOV 1 2023 WERE PRICED AT 98 WITH A COUPON OF 545 TO YIELD 559 THE BONDS SUBJECT TO THE ALTERNATIVE MINIMUM TAX ARE TO BE USED BY HAWAIIAN ELECTRIC CO AND SUBSIDIARY PROJECTS HAWAIIAN ELECTRIC CO IS A UNIT OF HAWAIIAN ELECTRIC INDUSTRIES INC FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 1638 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 715 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1637 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OF CS FIRST BOSTON INC THE OFFERING SERIES 1639 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 65 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 177 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 1640 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1642 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 356 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993235 IS BACKED BY THE PRINCIPALONLY PORTION OF STRIPS TRUST 240 WHICH IS BACKED IN TURN BY FANNIE MAE'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 749 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 357 MONTHS BANCO ECONOMICO SA BRAZIL 80 MILLION OF MINIMUM COUPON EUROBONDS AT ISSUE AND FIXED REOFFER PRICE PAR VIA SWISS BANC CORP COUPON IS HIGHER OF 9 OR SIXMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS PLUS FOUR POINTS FEES 125 INTEREST PAYABLE SEMIANNUALLY BANCO ICATU SA BRAZIL 60 MILLION OF 925 EUROBONDS DUE NOV 12 1996 AT ISSUE AND FIXED REOFFER PRICE 9956 VIA PARIBAS CAPITAL MARKETS LTD BONDS PRICED TO YIELD 942 A SPREAD OF 525 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 1125 INTEREST PAYABLE SEMIANNUALLY EUROPEAN INVESTMENT BANK SUPRANATIONAL 20 BILLION PESETAS OF 8125 EUROBONDS DUE NOV 18 2003 AT ISSUE PRICE 10107 VIA BANESTO AT COMANAGER'S BREAKEVEN PRICE 9932 BONDS YIELD 823 A MARGIN OF 20 BASIS POINTS BELOW 10YEAR 105 BONOS FEES 1875 INCLUDED IS A SPECIAL LEAD MANAGER'S FEE OF 0125 POINT FINLAND SOVEREIGN 300 MILLION SWISS FRANCS OF 425 PUBLIC BONDS DUE DEC 15 2003 PRICED AT 10275 LEAD MANAGER CREDIT SUISSE FEES 275 HALIFAX BUILDING SOCIETY UK 150 MILLION ECU OF 5875 EUROBONDS DUE NOV 12 1998 AT ISSUE PRICE 101305 VIA LEAD UNDERWRITER UBS LTD REOFFERED AT 99705 TO YIELD 594 A MARGIN OF 10 BASIS POINT OVER COMPARABLE FRENCH ECU TREASURY FEES 1875 JINDAL STRIPS LTD INDIA 50 MILLION OF CONVERTIBLE EUROBONDS DUE MARCH 31 1999 WITH 10 OVERALLOTMENT OPTION AT INDICATED COUPON OF 45 TO 5 AND ISSUE PRICE PAR VIA KLEINWORT BENSON LTD CONVERSION PREMIUM INDICATED AT 10 TO 15 OVER SEVENDAY AVERAGE SHARE PRICE OF COMPANY WHEN TERMS ARE FIXED AROUND SECOND WEEK OF NOVEMBER PUT OPTION ON MARCH 31 1997 AT PAR BONDS NONCALLABLE BEFORE MARCH 31 1997 AND THEREAFTER SUBJECT TO PRICE BEING 130 OF CONVERSION PRICE FOR 30 DAYS FEES 275 INTEREST PAYABLE SEMIANNUALLY SAINT GOBAIN NETHERLANDS NV FRENCH PARENT ONE BILLION FRENCH FRANCS OF 65 EUROBONDS DUE NOV 26 2003 AT ISSUE PRICE 100981 VIA BANQUE NATIONALE DE PARIS REOFFERED AT 99356 BONDS YIELD 659 A MARGIN OF 66 BASIS POINTS OVER 10YEAR 675 FRENCH GOVERNMENT BOND GUARANTOR SAINT GOBAIN FEES TWO TRANS TOKYO BAY HIGHWAY CORP JAPAN 200 MILLION OF 575 EUROBONDS DUE NOV 26 2003 AT ISSUE AND FIXED REOFFER PRICE 99425 VIA IBJ INTERNATIONAL LTD BONDS PRICED TO YIELD 583 A MARGIN OF 32 BASIS POINTS ABOVE 575 US TREASURY OF AUGUST 2003 GUARANTOR GOVERNMENT OF JAPAN FEE 0325 9310280073 931028 LEISURE & ARTS PUBLISHING MAKING A BUCK OFF THE BRILLIANTLY STUPID BY JOANNE KAUFMAN HERE ARE SOME OF THE STUPIDEST THINGS KATHRYN PETRAS HAS EVER SAID HE'S A SHEEP IN WOOL CLOTHING HALF OF ONE SIX DOZEN OF ANOTHER AND YOU CAN'T SEE THE TREES IN THE FOREST HERE IS ONE OF THE STUPIDEST THINGS HER BROTHER ROSS HAS EVER SAID THIS IS NOT A DRY RETELLING OF HISTORY BUT A DULL ANALYSIS OF EVENTS HE SAID THAT WHEN PITCHING A BOOK PROPOSAL ABOUT THE CIVIL WAR BOTH ROSS AND I ARE TALKERS AND THE MORE YOU TALK THE MORE LIKELY YOU ARE TO SAY SOMETHING STUPID SAID MS PETRAS A BRAINY 34YEAROLD EXPLAINING OVER COFFEE HOW SHE AND MR PETRAS HER CANNY ELDER AT 37 CAME UP WITH THE IDEA FOR THEIR BESTSELLING THE 776 STUPIDEST THINGS EVER SAID DOUBLEDAY 220 PAGES 899 THE PETRASES WHO ARE ALREADY WORKING ON A SEQUEL HAVE DISCOVERED THAT WHERE DUMBNESS IS CONCERNED THERE'S A STUPEFYING SUPPLY THEY POINT TO BROOKE SHIELDS'S SAGE OBSERVATION THAT SMOKING KILLS IF YOU'RE KILLED YOU'VE LOST A VERY IMPORTANT PART OF YOUR LIFE THEY REMIND YOU OF THE BRITISH POL WHO NOTED THAT HALF THE LIES OUR OPPONENTS TELL ABOUT US ARE NOT TRUE THEY CITE EVA BRAUN'S LETTER TO A FRIEND FROM HER COURTESAN'S POST IN HITLER'S BUNKER I CAN'T UNDERSTAND HOW ALL THIS CAN HAPPEN IT'S ENOUGH TO MAKE ONE LOSE ONE'S FAITH IN GOD THEY OFFER YOU THE CONGRESSMAN WHO ASKED DURING A DEBATE WHY CAN'T THE JEWS AND THE ARABS JUST SIT DOWN TOGETHER AND SETTLE THIS LIKE GOOD CHRISTIANS AND OF COURSE THEY REVIVE DAN QUAYLE'S OBSERVATION I LOVE CALIFORNIA I GREW UP IN PHOENIX I THINK IT TAKES A CERTAIN CREATIVE AND DRAMATIC FLAIR TO COME OUT WITH SOMETHING STUPID SAYS MS PETRAS CHARITABLY IN DEFENSE OF DAN QUAYLE THE THINGS HE SAID WERE SO BRILLIANTLY STUPID THAT YOU HAVE TO GIVE THE GUY CREDIT SOMEHOW AND NOT TO SOUND NAMBYPAMBY BUT THE BOOK ISN'T MEANSPIRITED WE NEVER SAY THE PEOPLE ARE STUPID WE SAY THEY SAID STUPID THINGS I HOPE THE PEOPLE INCLUDED IN THE BOOK UNDERSTAND THAT AND IF THEY DO GET ANNOYED WE HAVE DOCUMENTATION THE MOST LIBERALLY REPRESENTED DUMBSAYERS IN THE 776 STUPIDEST THINGS ARE SAM GOLDWYN YOGI BERRA KANSAS CITY PADRES SPORTS ANNOUNCER JERRY COLEMAN AND KANSAS CITY IS AT CHICAGO TONIGHT OR IS THAT CHICAGO AT KANSAS CITY WELL NO MATTER KANSAS CITY LEADS IN THE EIGHTH 44 RONALD REAGAN GEORGE BUSH AND DAN QUAYLE WE DIDN'T TRY TO HAVE MORE REPUBLICANS THAN DEMOCRATS SAID MS PETRAS BUT IT MIGHT HAVE LOOKED THAT WAY BECAUSE REPUBLICANS HAVE BEEN IN OFFICE FOR SO LONG WE'RE ON A CLINTON GAFFEWATCH EVEN AS WE SPEAK HOW DID THE PETRASES DECIDE JUST WHICH UTTERANCES REPUBLICAN DEMOCRAT GOLDWYN WERE FOOLISH ENOUGH FOR INCLUSION WE HAD A VERY ORGANIC PRIMITIVE STUPIDOMETER SAID MR PETRAS IF ONE OF US LAUGHED EXTREMELY LOUDLY AND THE OTHER SAID IT WAS HORRIBLE WE'D HAVE FRIENDS ADJUDICATE IF WE BOTH LAUGHED IT WOULD BE IN UNLESS OUR EDITOR OBJECTED THE PETRASES WHO GREW UP IN RIDGEFIELD NJ BEGAN WORKING TOGETHER WHEN MR PETRAS SPOTTED AN ARTICLE IN MONEY MAGAZINE THAT HELD OUT THE PROMISE OF A 60000 PER YEAR INCOME WRITING HARLEQUIN ROMANCES THAT'S EASY THOUGHT MR PETRAS I'M SURE I COULD DO THAT AND THEN I THOUGHT WHY NOT GET KATHY TO DO IT TOO THE PETRAS' FIRST BOOK AND SECOND AND THIRD WERE REJECTED BY HARLEQUIN BUT OPERATING UNDER THE RALLYING CRY 60000 PER PERSON PER YEAR THE TWO PERSEVERED AND FINALLY A ROMANCE CALLED ANOTHER CHANCE AT LOVE WAS ACCEPTED BY THE CHRISTIAN PUBLISHING HOUSE FLEMING H REVELL THEY JUST TOOK OUT ALL THE SEX AND ADDED SOME PRAYER SCENES SAYS MS PETRAS AND THUS BEGAN OUR PUBLISHING CAREERS BUT OBVIOUSLY WE DIDN'T SEE OURSELVES AS WRITERS OF CHRISTIAN ROMANCES AND THEN ROSS HAD THE OBSERVATION THAT THE ONE THING WE REALLY DID WELL WAS TO GET JOBS OUT OF THEIR VARIED WORK EXPERIENCE ROSS'S TENURE AS A FOREIGN SERVICE OFFICER IN SAUDI ARABIA AS A LOAN OFFICER FOR MANUFACTURERS HANOVER IN AFRICA AND AS A FILM AUDITOR AND FROM KATHRYN'S STINTS AS AN ASSISTANT BUYER AT A DEPARTMENT STORE A FITNESS INSTRUCTOR AN INFORMATION SPECIALIST AT CNN AN ASSOCIATE PRODUCER FOR A LOCAL NEWS SHOW AND A FREELANCE LIBRARIAN THE PETRASES CAME UP WITH THE IDEA OF WRITING A BOOK AIMED AT RECENT COLLEGE GRADUATES THEIR FIRST EFFORT INSIDE TRACT WAS FOLLOWED BY THE ONLY JOB GUIDE YOU'LL EVER NEED THE ONLY RETIREMENT GUIDE YOU'LL EVER NEED THEN A SERIES OF ANNUAL GUIDES JOBS '90 JOBS 91 ETC THEY'RE VERY SOLID BOOKS BUT VERY BORING SAYS MS PETRAS DUMBING WITH FAINT PRAISE BUT THEN THE BRIGHTEST THING SHE EVER DID WAS TO COLLECT ALL THE FOOLISH THINGS SHE AND HER BROTHER SAID AND KEY THEM INTO A COMPUTER FILE CALLED HALL OF SHAME ONE DAY A BULB WENT ON OVER HER HEAD AND SHE TURNED THE FILE INTO THE BEGINNING OF 776 THE PETRASES STARTED LOOKING FOR MORE IDIOCY TO FILL OUT THE BOOK AND FOUND IT WHEREVER THEY TURNED IN NEWSPAPERS IN MAGAZINES ON CSPAN IN IRISH AND ENGLISH BULLS FROM THE 19TH CENTURY IN THE AMERICAN MERCURY IN AD AGE THE CHRONICLE OF HIGHER EDUCATION THE CANADIAN ADMINISTRATIVE REVIEW IN THE BEGINNING IT WAS KIND OF HARD BECAUSE YOU CAN'T TYPE INTO A COMPUTER STUPID SAYING' OR MISQUOTE' SAID MS PETRAS SO WE HAD TO GET CLEVER TRYING TO FIGURE OUT FROM A HEADLINE WHETHER THERE WAS SOMETHING DUMB IN A STORY THEY HAD HIGH HOPES FOR THE CONGRESSIONAL RECORD BUT IN THEIR INNOCENCE DIDN'T REALIZE IT WAS EDITED FOR PUBLIC CONSUMPTION WE DIDN'T GET ANYTHING FROM THERE SIGHED MS PETRAS THEY MAY NOT HAVE TO LOOK SO HARD WHEN COMPILING THE SEQUEL SINCE THE PUBLICATION OF 776 PEOPLE HAVE SENT THE PETRASES NEW YOGI BERRA QUOTES A SOUTH AMERICAN JOURNALIST HAS WRITTEN WITH THE FOOLISH UTTERANCES OF BRAZILIAN SOCCER PLAYERS AND A LAW FIRM IN PHILADELPHIA PUT TOGETHER A PAMPHLET OF SOLECISMS FROM ONE OF ITS PARTNERS THE 776 STUPIDEST THINGS EVER SAID WHICH CURRENTLY HAS AT LEAST 150000 COPIES IN PRINT RECEIVED AN ADRENALINE JOLT WHEN DAVID BRINKLEY QUOTED FROM IT IN HIS SUNDAY COMMENTARY THE PETRASES WHO TRADE OFF TOP BILLING ROSS'S NAME APPEARS FIRST ON THE 776 STUPIDEST THINGS HAVE ALSO DONE THEIR OWN PECULIAR PUBLICITY ALMOST DAILY THEY STAKE OUT THE LOCAL BARNES AND NOBLE AND MOVE THE BOOK FROM THE QUOTE SECTION TO THE MORE PROMINENT HUMOR SECTION BUT THE HUMOR SECTION IS NEAR THE INFORMATION COUNTER AND SOMEONE IS ALWAYS SITTING THERE SAYS MR PETRAS SO ONE OF US HAS TO BLOCK THE VIEW OF THE EMPLOYEE AND THE OTHER MOVES THE BOOK WE'RE LIKE A TRAINED COMMANDO TEAM THEY HAVE ALSO BEEN KNOWN TO STROLL INTO STORES AND PUT THE BOOK IN THE WINDOW OR NEAR THE CASH REGISTER BUT WHEN WE'RE DOING IT WE TRY NOT TO CALL EACH OTHER KATHY AND ROSS BECAUSE THAT MIGHT DRAW ATTENTION TO US SO WE GO BY DON AND KAREN SAYS MS PETRAS IT IS A PROCESS THEY WILL NO DOUBT REPEAT WITH UPCOMING WORKS AMONG THEM THE 776 NASTIEST THINGS EVER SAID AN UNOFFICIAL COMPANION TO BARTLETT'S FAMILIAR QUOTATIONS THAT WILL ENCOMPASS THE MEMORABLE WORDS FROM THE LIKES OF ISRAELI NOVELIST AMOS OZ EGYPTIAN NOVELIST NAGUIB MAHFOUZ AND TURKISH POET NAZISM HIKMET WHILE MOST OF THE PETRAS' FRIENDS EXPRESS AMAZEMENT AT THE NOTION OF SIBLINGS WORKING TOGETHER THERE ARE REAL ADVANTAGES WE OBVIOUSLY KNOW EACH OTHER EXTREMELY WELL SO WE CAN CUT THROUGH THE CRAP AND WE HAVE A SIMILAR SENSE OF HUMOR SAYS MR PETRAS WHO SEES HIMSELF AS THE IDEA MAN AND HIS SISTER AS THE ORGANIZER IN THE BEGINNING WE HATED IT WHEN PEOPLE REFERRED TO US AS A BROTHER AND SISTER TEAM BUT THEN WE REALIZED IT WAS CUTE CUTE MS PETRAS SAYS SMILING SWEETLY SELLS 9310280072 931028 CHRETIEN TO SCRAP CONTRACT OTTAWA REUTER CANADA'S PRIME MINISTERELECT JEAN CHRETIEN SAID ONE OF HIS FIRST ACTS WILL BE TO SCRAP A 36 BILLION CONTRACT TO BUY 43 MILITARY HELICOPTERS FROM A BRITISHITALIAN CONSORTIUM MR CHRETIEN MADE THE CONTROVERSIAL EH101 HELICOPTER DEAL SIGNED BY THE CONSERVATIVE GOVERNMENT ONE OF THE KEY ISSUES OF HIS CAMPAIGN CRITICS SAY THE HELICOPTER IS A COSTLY AND OBSOLETE RELIC OF THE COLD WAR THAT WAS DESIGNED TO HUNT SOVIET SUBMARINES THE EH101 IS BUILT BY JOINTVENTURE BETWEEN BRITAIN'S WESTLAND GROUP PLC AND ITALY'S STATEOWNED AGUSTA SPA 9310280071 931028 CORRECTIONS & AMPLIFICATIONS AMERICAN GREETINGS CORP'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MORRY WEISS SOLD ABOUT 165800 CLASS B SHARES OR ABOUT 22 OF HIS CLASS B HOLDINGS CDA/INVESTNET THE SOURCE OF THE INSIDE TRADING SPOTLIGHT IN YESTERDAY'S EDITION ERRONEOUSLY COMPARED MR WEISS'S CLASS A SHARES WITH HIS CLASS B HOLDINGS AND INCORRECTLY REPORTED MR WEISS HAD SOLD 99 OF HIS CLASS B SHARES 9310280070 931028 LETTERS TO THE EDITOR FAIR USE DOCTRINE IN COMMERCIAL CONTEXT WHILE KENNETH STARR MIGHT BE RIGHT ABOUT THE PROBLEMS WITH THE SUPREME COURT'S CASE SELECTION PROCESS SUPREME COURT NEEDS A MANAGEMENT REVOLT RULE OF LAW OCT 13 THE EXAMPLE HE USED TO DEMONSTRATE THE COURT'S NONCOMMERCIAL DOCKET IS WAY OFF TARGET THE 2 LIVE CREW CASE APPEARS TO CONCERN AESTHETIC SENSIBILITIES AND ESOTERIC FIRST AMENDMENT QUESTIONS HOWEVER THE REAL ISSUE BEFORE THE COURT IS THE APPLICABILITY OF THE FAIR USE DOCTRINE IN COMMERCIAL CONTEXTS FOR THIS REASON THE CASE IS OF GREAT INTEREST TO THE ENTERTAINMENT INDUSTRY WHICH GENERATES BILLIONS OF DOLLARS OF REVENUE AND EMPLOYS HUNDREDS OF THOUSANDS OF AMERICANS IT IS TRUE THAT NONPROFIT ORGANIZATIONS SUCH AS THE ACLU AND OUR CLIENT THE HARVARD LAMPOON HAVE FILED AMICUS BRIEFS IN THE CASE AT THE SAME TIME DECIDEDLY COMMERCIAL ORGANIZATIONS SUCH AS FOX HBO AND NBC HAVE ALSO FILED AMICUS BRIEFS MR STARR WILL HAVE TO FIND A BETTER EXAMPLE OF THE SUPREME COURT CLERKS' LACK OF INTEREST IN CASES WITH SIGNIFICANT COMMERCIAL IMPACT MR STARR CRITICIZED THE SUPREME COURT'S DENIAL OF CERTIORARI IN THE QUAKER OATS CO GATORADE TRADEMARK INFRINGEMENT CASE IN ILLINOIS MR STARR IS IDENTIFIED ONLY AS A FORMER FEDERAL JUDGE AND SOLICITOR GENERAL WHAT WAS NOT DISCLOSED IS THAT HE IS A PARTNER IN THE LAW FIRM OF KIRKLAND & ELLIS WHICH HAS NOW BECOME THE FOURTH OUTSIDE COUNSEL TO QUAKER IN THE GATORADE LITIGATION MY COMPANY OWNS THE TRADEMARK FOR THIRSTAID FOUR FEDERAL JUDGES HAVE NOW CONCLUDED THAT QUAKER ACTED IN BAD FAITH TO INFRINGE THE THIRSTAID MARK IN USING THE MARK TO SELL 26 BILLION OF GATORADE THE DISTRICT COURT'S MOST RECENT DECISION IN THE CASE FOUND THAT QUAKER WAS TOLD IMMEDIATELY FOLLOWING ITS PUBLIC USE THAT IT WAS INFRINGING AND WOULD DAMAGE PLAINTIFF'S MARK AND THAT QUAKER DISREGARDED THE ADVICE OF ITS OUTSIDE TRADEMARK COUNSEL NOT MR STARR'S FIRM TO MINIMIZE THE USE OF THIRSTAID IN ITS ADVERTISING QUAKER'S LIABILITY AND AN AWARD OF 265 MILLION ARE HARDLY REMARKABLE GIVEN THESE AND OTHER FACTS TO BE SURE MR STARR'S VIEW THAT THE JUDGMENT AGAINST QUAKER IS TENUOUSLY SUPPORTED BY A CONFUSED SET OF LOWER COURT OPINIONS IS NOT SHARED BY THE JUDGES WHO HAVE HEARD AND REVIEWED THE EVIDENCE QUAKER WE SUSPECT WILL TRY TO TAKE THE CASE TO THE SUPREME COURT AGAIN NO DOUBT WITH THE HELP OF MR STARR'S FIRM 9310280068 931028 FUTURE COMMUNICATIONS DELAYS ANNUAL MEETING DALLAS FUTURE COMMUNICATIONS INC SAID IT HAS ONCE AGAIN POSTPONED ITS ANNUAL MEETING THE 1992 ANNUAL MEETING LAST MONTH THE CABLE TELEVISION CONCERN FINALLY SCHEDULED THE 1992 SHAREHOLDERS' GETTOGETHER FOR TOMORROW SERGIO BOSCO THEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY WAS TOO BUSY WITH THE RAPID PACE OF BUSINESS TO MEET ANY SOONER SINCE THEN THE SECURITIES AND EXCHANGE COMMISSION AND AT LEAST FOUR SHAREHOLDER GROUPS HAVE SUED THE COMPANY CHARGING FRAUD AND AN ILLEGAL SCHEME TO INFLATE THE STOCK PRICE ANOTHER GROUP OF SHAREHOLDERS SAID THEY PLANNED A PROXY FIGHT AND MR BOSCO STEPPED ASIDE AS CHIEF EXECUTIVE OFFICER DAVID GORMAN THE COMPANY'S NEWLY APPOINTED PRESIDENT AND MR BOSCO'S SONINLAW SAID THE MEETING WON'T BE HELD AS PLANNED BECAUSE I'M NOT PREPARED SO FAR THE COMPANY HASN'T EVEN PRODUCED PROXY MATERIALS FOR THE 1992 SHAREHOLDERS' MEETING MR GORMAN WOULDN'T SAY WHEN THE MEETING WILL BE HELD 9310280067 931028 LEISURE & ARTS BOOKSHELF INSIDE THE FOSTER CARE SYSTEM BY SOL STERN SUSAN SHEEHAN KNEW THAT SHE WOULD UNCOVER ANY NUMBER OF URBAN HORROR STORIES WHEN SHE SET OUT IN 1990 TO EXPLORE THE WORLD OF FOSTER CARE IN NEW YORK CITY AFTER ALL NUMEROUS REPORTS BY WATCHDOG GROUPS AND ELECTED OFFICIALS HAD DOCUMENTED THE HARM DONE TO NEW YORK'S POOR CHILDREN BY THE CITY'S DYSFUNCTIONAL CHILD WELFARE SYSTEM FOSTER CARE AGENCIES WERE IMPLODING UNDER THE PRESSURE OF TOO MANY CHILDREN IN CARE AND TOO FEW CASEWORKERS THE WHOLE SYSTEM HAS LOST ITS LOGIC ITS COHESION ITS ABILITY TO FUNCTION FAMILY COURT JUDGE JEFFREY GALLETT SAID THAT YEAR ONE PERSON DOESN'T KNOW WHAT THE OTHER PERSON IS DOING THERE'S NO OVERSIGHT THERE'S NO ACCOUNTABILITY THE CITY USED STATE CONFIDENTIALITY LAWS INTENDED TO PROTECT THE PRIVACY OF CHILDREN TO SHIELD CHILD WELFARE CASEWORKERS AND MANAGERS FROM PUBLIC SCRUTINY OF THEIR ACTIONS BUT MS SHEEHAN A STAFF WRITER FOR THE NEW YORKER AND AUTHOR OF WIDELY ACCLAIMED BOOKS ON HOMELESSNESS AND WELFARE WAS ABLE TO TEMPORARILY PIERCE THIS IRON CURTAIN OF SECRECY SHE WAS GIVEN UNPRECEDENTED ACCESS TO FOSTER CARE CASE RECORDS AND HAD THE COOPERATION AND CANDID TESTIMONY OF CRYSTAL TAYLOR A PSEUDONYM A YOUNG BLACK WOMAN WHO WAS PLACED IN FOSTER CARE AT THE AGE OF 14 AFTER SHE HAD AN OUTOFWEDLOCK CHILD IN HER FLAT ALMOST DOCUMENTARY STYLE MS SHEEHAN FOLLOWS CRYSTAL HER SON HER MOTHER AND THE REST OF THEIR FAMILY AS THEY PASS IN AND OUT OF THE FOSTER CARE SYSTEM IN LIFE FOR ME AIN'T BEEN NO CRYSTAL STAIR PANTHEON 174 PAGES 21 WE ENCOUNTER UNCARING OR INCOMPETENT CASE WORKERS WHO SOMETIMES MAKE DREADFUL DECISIONS AND WE GET AN OCCASIONAL GLIMPSE AT AN IRRATIONAL SYSTEM BUT NO OBJECTIVE READER OF THIS BOOK CAN FAIL TO CONCLUDE TRAGICALLY THAT THE REAL PERMANENT DAMAGE TO THIS FAMILY WAS LARGELY SELFINFLICTED THE BOOK OPENS WHEN CRYSTAL IS 14YEARSOLD LIVING WITH A 23YEAROLD DRUG DEALER IN THE BRONX AND ABOUT TO GIVE BIRTH CRYSTAL'S DRUG ADDICT MOTHER IS LIVING IN ANOTHER ONEBEDROOM APARTMENT WITH HER THREE OTHER CHILDREN HER SISTER AND HER SISTER'S CHILD WHEN CRYSTAL'S MOTHER VISITS HER IN THE HOSPITAL A DAY AFTER THE BABY IS BORN SHE BRINGS ALONG SOME MARIJUANA HERE IS HOW SHE CASUALLY REMEMBERS THAT CHOICE OF GIFT FOR THE EIGHTHGRADER WHO HAD JUST GIVEN BIRTH SHE WAS BORED SHE HAD NOTHING FURTHER TO DO SMOKING WEED MADE CRYSTAL PLEASANTLY HIGH WHEN CRYSTAL HERSELF WAS BORN IN A HARLEM HOSPITAL IN 1970 THERE WAS LITTLE TO INDICATE THAT HER LIFE WOULD TURN OUT SO SAVAGE IT IS TRUE THAT CRYSTAL'S MOTHER FRANCIS WAS A GRADUATE OF THE FOSTER CARE SYSTEM YET AT THE AGE OF 19 SHE WAS WORKING AS A CLERKTYPIST FOR LAW FIRMS AND INSURANCE COMPANIES CRYSTAL'S FATHER WAS ALSO ON HIS FEET NOT A VICTIM OF UNENDURABLE POVERTY HE HAD SERVED TWO AIR FORCE TOURS AND THEN FOUND A JOB SOMEWHERE ALONG THE WAY CRYSTAL'S MOTHER DECIDED TO SUPPLEMENT HER WAGE INCOME BY SHOPLIFTING AND FRAUDULENTLY OBTAINING WELFARE BENEFITS EVENTUALLY SHE TURNED TO DRUGS CRYSTAL'S FATHER SIMPLY DECIDED TO STOP WORKING AND BEGAN TAKING DRUGS GROWING UP IN A FAMILY WITH NO MODELS OF WORK OR PERSONAL RESPONSIBILITY CRYSTAL WAS ALSO TAKING DRUGS AND SHOPLIFTING BY THE TIME SHE WAS 12YEARSOLD AFTER SHE WAS PLACED IN A FOSTER CARE GROUP HOME THE SELFDESTRUCTIVE BEHAVIOR CONTINUED ALTHOUGH HER CASEWORKERS HELPED HER GET THROUGH HIGH SCHOOL AND FIND NUMEROUS JOBS SHE WAS ARRESTED SEVERAL TIMES ON SHOPLIFTING AND DRUG CHARGES TWO OF HER BOYFRIENDS WERE DRUG DEALERS AND ON ONE OCCASION SHE HELPED TRANSPORT A SHIPMENT OF COCAINE TO WASHINGTON DC BLESSED WITH INNATE INTELLIGENCE CRYSTAL EMERGES AS A GRITTY SURVIVOR AT THE END OF THE BOOK SHE IS 21YEARSOLD OUT OF FOSTER CARE AND WITH A JOB AND AN APARTMENT OF HER OWN BUT SHE COMPLAINS THAT HER WAGES WHICH USED TO SUBSIDIZE HER TASTE FOR FANCY CLOTHES WHEN SHE LIVED IN THE GROUP HOME NOW WERE USED UP PAYING FOR RENT AND FOOD THE PUBLISHER'S JACKET COPY FOR THIS BOOK TELLS US THAT IT CHARTS A TERRIFYING LEGACY OF INSTITUTIONAL ABUSE AND NEGLECT AND SHOWS THE DAMAGE THAT HAS BEEN INFLICTED ON THREE GENERATIONS OF ONE INNERCITY FAMILY THIS IS CERTAINLY A WRONG READING THERE IS LITTLE IN MS SHEEHAN'S NARRATIVE TO SUGGEST THAT EITHER RACISM OR THE ECONOMIC SYSTEM CAUSED THIS FAMILY'S DISINTEGRATION WHATEVER THE AUTHOR'S INTENTION THIS BOOK TURNS OUT TO BE LESS ABOUT INSTITUTIONAL FAILURE AND MUCH MORE ABOUT PERSONAL MORAL FAILURE AND ITS CONSEQUENCE FOR OUR SOCIAL ORDER IT SHOULD MORE PROPERLY BE READ AS A POWERFUL CASE STUDY CONFIRMING SENATOR DANIEL PATRICK MOYNIHAN'S RECENT WARNING THAT URBAN SOCIETY IS INCREASINGLY ACCOMMODATING INDIVIDUAL DESTRUCTIVE BEHAVIOR AND THAT TO AVOID CONFRONTING THE SOCIAL CHAOS CAUSED BY THAT BEHAVIOR THE TENDENCY OF THE PREVAILING CULTURE IS TO KEEP DEFINING DEVIANCY DOWN THROUGH THE 23 YEARS COVERED IN THIS BOOK CRYSTAL'S FAMILY PROBABLY COST THE TAXPAYERS IN THE NEIGHBORHOOD OF 1 MILLION IN OUTLAYS FOR FOSTER CARE AND WELFARE BUT THE GOVERNMENT THAT WAS DOLING OUT THESE FUNDS WAS INCAPABLE OF DEMANDING MINIMAL STANDARDS OF RESPONSIBLE BEHAVIOR FROM THE ADULT FAMILY MEMBERS ULTIMATELY CRYSTAL AND HER FAMILY AND ALL OF US WERE VICTIMIZED NOT BECAUSE THERE WAS A HOLE IN THE SOCIAL SAFETY NET BUT BECAUSE DURING THE PAST TWO DECADES THE SOCIAL CONTRACT HAS BEEN TORN UP MR STERN IS AN ADVISER ON SOCIALPOLICY ISSUES TO NEW YORK CITY COUNCIL PRESIDENT ANDREW STEIN 9310280066 931028 PADDY LARCENY ADDS NEW ITEM TO MENUS IN JAPAN HOT RICE POOR HARVEST FEAR OF IMPORTS CREATE A SHORTAGE POLICE AND FARMERS ARE STEAMED BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL OWANI JAPAN AS NIGHT FALLS IN THIS FARNORTH FARMING VILLAGE A CRACK TEAM OF POLICEMEN IS ON THE MOVE WE'RE OFF TO THE PADDIES SAYS THE UNIT'S COMMANDER MASANORI MITSUHASHI THREE UNIFORMED COLLEAGUES SNAP ON POWERFUL FLASHLIGHTS AND HEAD OUT INTO THE DARKNESS THIS IS THE RICE SQUAD ON PATROL FOR RICE THIEVES ARMED WITH WOODEN BILLY CLUBS AND WEARING FLUORESCENT ARMBANDS SPECIAL UNITS ARE FANNING OUT ACROSS RURAL JAPAN THEIR MISSION TO COMBAT A RICE CRIME WAVE SWEEPING THE COUNTRY THE THIEVES LOAD UP THEIR TRUCKS AND JUST TAKE OFF SAYS MR MITSUHASHI SHAKING HIS HEAD AS HIS SQUAD CAR'S HEADLIGHTS ILLUMINATE A STRETCH OF GOLDEN RICE STALKS WE'RE GOING TO MAKE SURE THAT DOESN'T HAPPEN HERE AS JAPAN FACES ITS WORST POSTWAR RICE HARVEST IT IS EXPERIENCING A GREAT GRAIN ROBBERY IN ONE OF THE MOST ORDERLY NATIONS IN THE WORLD PEOPLE HAVE STARTED STEALING RICE FROM WAREHOUSES HUSKING MACHINES OR DIRECTLY FROM THE MUDDY PADDIES THAT CRISSCROSS THE COUNTRYSIDE EARLY THIS MONTH BANDITS RAN OFF WITH SIX TONS OF RICE FROM A WAREHOUSE IN SOUTHERN JAPAN UNHARVESTED RICE STALKS WERE HACKED OFF FROM A COUPLE OF EXPERIMENTAL FARMS IN THE NORTHERN FARMLANDS MORE THAN 200 FARMS HAVE BEEN HIT AND RICE THEFTS HAVE SOARED 26 THIS YEAR AND THE HARVESTING SEASON HAS JUST BEGUN I'VE BEEN A FARMER FOR 40 YEARS AND THIS NEVER HAPPENED TO ME BEFORE SAYS SHUICHI IGARASHI A RECENT VICTIM IN THE NORTHWESTERN TOWN OF SANJO THE DAY AFTER HE MILLED 17 TONS OF RICE A THIRD OF HIS ANNUAL CROP IT DISAPPEARED FROM HIS WAREHOUSE THE CRIME IS UNSOLVED TALK OF STOLEN RICE IS CREATING A STIR IN FARMING COMMUNITIES ALARMED FARMERS' UNIONS ARE ORGANIZING OVERNIGHT VIGILANTE PATROLS THE NATIONAL FEDERATION OF AGRICULTURAL COOPERATIVE ASSOCIATIONS RECENTLY SENT LETTERS TO BRANCH OFFICES URGING FARMERS TO LOCK THEIR WAREHOUSES AT NIGHT THEORIES ABOUND AS TO THE RICE THIEVES' MOTIVES SOME FIGURE IT IS COLLECTIVE PANIC RICE WAS TEMPORARILY UNAVAILABLE IN MANY STORES EARLIER THIS MONTH WHEN NEWS BROKE OF THIS AUTUMN'S LOW YIELD AND CONSUMERS RUSHED TO HOARD RICE SOME RESTAURANTS BEGAN SERVING ONLY NOODLES TO SURPRISED CUSTOMERS WEEKLY TABLOIDS ARE FILLED WITH HORROR STORIES ABOUT THE FOREIGN RICE THAT WILL SOON ARRIVE FROM AMERICA AND OTHER PARTS OF ASIA FOCUSING ON THE POSTHARVEST PRESERVATIVES USED TO KEEP THE GRAIN FRESH DURING THE JOURNEY TO JAPAN THERE IS MORE THAN A LITTLE SNOBBERY INVOLVED TOO MANY JAPANESE BELIEVE THEIR RICE IS SIMPLY SUPERIOR THEN THERE ARE THE BLACK MARKETERS EAGER TO GET AROUND THE HIGHLY REGULATED RICE MARKET AND GOVERNMENTSET PRICES BLACK MARKETERS ARE OFFERING PRICES UP TO 50 HIGHER THAN LAST YEAR AND MANY OF THOSE ARRESTED HAVE TOLD POLICE THEY TOOK THE RICE TO SELL ON THE BLACK MARKET OF COURSE STEALING RICE ISN'T ALWAYS EASY LATE LAST MONTH THREE MEN IN CHIBA PREFECTURE NEAR TOKYO DROVE UP TO AN UNLOCKED STORAGE HUT BEFORE DAWN AND LOADED THEIR VAN WITH NEARLY A TON BARKING WATCHDOGS AWAKENED OWNER RYO TAKAGI WHO SUCCESSFULLY CHASED DOWN THE THIEVES IN HIS CAR AS THEIR VAN WOBBLED UNDER THE WEIGHT OF THE LOOT AFTER TURNING THE THIEVES OVER TO THE POLICE MR TAKAGI WAS SHOCKED TO FIND THAT ONE WAS A FELLOW FARMER SHAMEFUL HE SAYS TRYING TO GET MONEY WITHOUT WORKING ACCUSTOMED TO STOCKING A WHOLE YEAR'S WORTH OF RICE IN THEIR BACKYARDS SOME FARMERS HAVE PANICKED AND STOLEN FROM OTHER PEOPLE'S WAREHOUSES JEALOUS FARMERS WHOSE CROPS WERE DESTROYED BY THE WET SUMMER MAY ALSO HAVE PINCHED HEALTHY GRAIN FROM ANOTHER PADDY TO USE AS SEEDS FOR NEXT YEAR'S CROP FEAR IS RISING EVEN IN VILLAGES SUCH AS OWANI A QUIET COMMUNITY OF 15000 IN THE NORTHERNMOST TIP OF JAPAN'S MAIN ISLAND THE TOWN LIES ALONG A HIGHWAY AND RICE THIEVES SHOULD THEY COME HUNTING COULD GET AWAY QUICKLY SO FOR THE FIRST TIME OWANI'S RICE MILL IS EMPLOYING A NIGHT WATCHMAN FARMER HIROSHI NARITA SAYS HE STILL CAN'T GET USED TO THE IDEA OF LOCKING HIS STOREHOUSE AT NIGHT BUT HE HAS STARTED HIDING HIS BAGS OF RICE WITH A PLASTIC SHEET OTHER FARMERS FEEL A STRANGE SENSE OF HELPLESSNESS HOW ARE WE SUPPOSED TO KEEP A WATCH OUT SAYS SHOKO KUDO THESE ARE FIELDS WE'RE TALKING ABOUT SO THEY RELY ON THE RICE SQUAD OFFICER MITSUHASHI THE COMMANDER SAYS HE AND HIS TROOPERS ARE WELL PREPARED TO TACKLE ANY RICE THIEF SMILING THE ROSYCHEEKED POLICEMAN SAYS PROUDLY THAT HE WAS FORMERLY WITH THE VICE SQUAD AND HAS ARRESTED HUNDREDS OF ROBBERS INCLUDING ONE WHO RAIDED A SUPERMARKET WITH A LOADED HUNTING GUN RICE THIEVES PROBABLY AREN'T THAT VIOLENT HE SAYS WHAT ARE THEY GOING TO DO RAID A PADDY WITH A KITCHEN KNIFE AND SAY GIVE UP YOUR RICE 9310280065 931004 STRAIGHT SHOOTER ROBERT EATON THINKS VISION' IS OVERRATED AND HE'S NOT ALONE CHRYSLER'S CEO JOINS RANKS OF LEADERS WHO WATCH BASICS NOT CRYSTAL BALLS THE LESSON IN VW'S PROBLEMS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH ROBERT J EATON HAS A THEORY ABOUT VISION KEEP IT SHORT IN LATE JULY MR EATON THE RECENTLY APPOINTED CHAIRMAN OF CHRYSLER CORP GATHERED SCORES OF SENIOR MANAGERS FOR AN ANNOUNCEMENT OF CHRYSLER'S SECONDQUARTER EARNINGS THE BEST SINCE 1984 AFTER PATTING THEM ON THE BACK MR EATON RATTLED OFF SNIPPETS OF PRESS ACCOUNTS CHRYSLER'S TURNAROUND THEN CAME THE KICKER THE ACCOLADES HAD BEEN WRITTEN IN 1956 1965 1976 AND 1983 AT LEAST ONCE A DECADE CHRYSLER HAD SPRUNG FROM ITS DEATHBED TO A MIRACULOUS RECOVERY I'VE GOT A BETTER IDEA MR EATON TOLD HIS MANAGERS LET'S STOP GETTING SICK MY PERSONAL AMBITION IS TO BE THE FIRST CHAIRMAN NEVER TO LEAD A CHRYSLER COMEBACK STAYING HEALTHY IS HARDLY A GRAND VISION OF CHRYSLER'S FUTURE OR A DARING CAREER STRATEGY FOR BOB EATON BUT WELCOME TO THE 1990S VISION MAY NOT EXACTLY BE DEAD IN CORPORATE AMERICA BUT A SURPRISING NUMBER OF CHIEF EXECUTIVE OFFICERS ARE CASTING ASIDE THEIR CRYSTAL BALLS TO CONCENTRATE ON THE NUTSANDBOLTS OF RUNNING THEIR BUSINESSES IN THESE LEANER TIMES CONSIDER JUST A PARTIAL ROSTER OF OTHER CONCERNS THAT HAVE RECENTLY APPOINTED CEOS WHOSE NOTION OF VISION IS A SHARP EYE ON THE SHORTTERM BOTTOM LINE APPLE COMPUTER INC INTERNATIONAL BUSINESS MACHINES CORP AETNA LIFE & CASUALTY CO AND GENERAL MOTORS CORP INTERNALLY WE DON'T USE THE WORD VISION SAYS MR EATON WHOSE LOWKEY NONONSENSE STYLE COULDN'T BE MORE DIFFERENT FROM THAT OF HIS PREDECESSOR LEE A IACOCCA I BELIEVE IN QUANTIFIABLE SHORTTERM RESULTS THINGS WE CAN ALL RELATE TO AS OPPOSED TO SOME ESOTERIC THING NO ONE CAN QUANTIFY IF THAT SOUNDS FAMILIAR RECALL WHAT IBM'S NEW CHAIRMAN LOUIS V GERSTNER RECENTLY SAID WHEN ASKED ABOUT HIS RECIPE FOR AN IBM COMEBACK THE LAST THING IBM NEEDS RIGHT NOW IS A VISION AND EVEN SOME HONESTTOGOODNESS VISIONARIES THINK THE PREMISE OF VISIONARY LEADERSHIP IS OVERRATED IF THE FUNDAMENTALS OF RUNNING A BUSINESS ARE OVERLOOKED BEING A VISIONARY IS TRIVIAL WILLIAM GATES CHAIRMAN OF MICROSOFT CORP SAID NOT LONG AGO WHAT'S GOING ON HERE THE VALVES OF GROWTH ARE SHUT OFF AND THE COMPETITIVE PRESSURE IS ROLLING IN EXPLAINS GEORGE B BENNETT CHIEF EXECUTIVE OFFICER OF SYMMETRIX INC A BOSTONAREA CONSULTING FIRM IN THE DOUBLEDIGIT GROWTH DAYS OF THE 1980S HE NOTES EVEN INEFFICIENTLY RUN COMPANIES COULD MAKE MONEY WHILE THE CEO MUSED ABOUT LONGTERM STRATEGY NOW WITH GROWTH RATES STALLED AND NEW COMPETITION COMING THROUGH THE KEYHOLE YOU ARE FORCED TO CHANGE THE FUNDAMENTALS MR BENNETT SAYS THERE ARE CAVEATS TO THIS OF COURSE WHILE PERSONAL COMPUTERS HAVE SHAKEN OUT INTO A COMMODITIES BUSINESS THERE IS STILL ROOM AND NEED FOR VISIONARIES PLOTTING THE NEXT LEAP IN TECHNOLOGY AND CABLETELEVISION AND TELEPHONECOMPANY CEOS WITHOUT A SENSE OF THE FUTURE PROBABLY HAVE LITTLE FUTURE THEMSELVES YOU HAVE TO LOOK INDUSTRY BY INDUSTRY THERE ARE TIMES WHEN YOU NEED A RADICALLY NEW IDEA TO WIN IN THE MARKETPLACE SAYS NOEL TISCHY A UNIVERSITY OF MICHIGAN PROFESSOR WHO DIRECTED MANAGEMENT TRAINING AT GENERAL ELECTRIC CO THE CAR INDUSTRY BY CONTRAST IS AMONG A NUMBER OF MATURE INDUSTRIES WHERE CURRENT MARKET CONDITIONS ARGUE STRONGLY FOR THE KIND OF MUNDANE BLOCKING AND TACKLING THAT MR EATON IS BRINGING TO CHRYSLER MR TISCHY ADDS EATON HAS A DEEP UNDERSTANDING OF WHAT IT TAKES TO BUILD THAT KIND OF CORPORATE CULTURE CHRYSLER'S TAPPING OF MR EATON FOR ITS TOP POST COULDN'T SEND A CLEARER SIGNAL THAT IT IS STEERING A BACKTOBASICS COURSE BOTH IN STYLE AND PHILOSOPHY MR IACOCCA WHO WON ACCLAIM FOR BRINGING CHRYSLER BACK FROM THE BRINK AND RESTORING ITS HEALTH NEVERTHELESS COMPORTED HIMSELF AS SOMETHING OF A CORPORATE PRINCE WHILE IN OFFICE HIS GHOSTWRITTEN AUTOBIOGRAPHY WAS A BESTSELLER HE WAS THE VERY VISIBLE PATRON OF AN EFFORT TO RESTORE THE STATUE OF LIBERTY HE PLAYED STATESMAN BY PUBLICLY PUSHING FOR PROTECTIONIST TRADE POLICIES HE ALSO TRIED TO THRUST THE COMPANY IN NEW DIRECTIONS AT ONE POINT CHRYSLER WAS TRYING TO BECOME AN AEROSPACE AND TECHNOLOGY CONGLOMERATE THROUGH DIVERSIFICATION AT ANOTHER IT WAS TOYING WITH BECOMING A GLOBAL AUTO MAKER THROUGH MERGER THE COMPANY BOUGHT AND SUBSEQUENTLY WAS FORCED TO SHED GULFSTREAM AEROSPACE CORP AND EF HUTTON CREDIT CORP FAR FROM BEING A GOOD LISTENER MR IACOCCA OFTEN COULDN'T STOP TALKING A CANDIDATE FOR A HIGH POST AT CHRYSLER TELLS OF BEING INTERVIEWED BY MR IACOCCA THE CHRYSLER BOSS HE SAYS ASKED AND ANSWERED HIS OWN QUESTIONS SO QUICKLY THAT THE CANDIDATE WAS ABLE TO UTTER A SINGLE WORD WELL THE ENTIRE TIME THE 53YEAROLD MR EATON ON THE OTHER HAND IS LARGELY VIEWED BY CHRYSLER INSIDERS AS A COACH AND A LISTENER WHO ESCHEWS THE TRAPPINGS OF POWER IN FAVOR OF TEAMWORK AND CONSENSUSBUILDING WHEN ASKED TO SUM UP HIS BUSINESS STRATEGY MR EATON SAYS HE HAS NO MIRACLES UP HIS SLEEVE THIS IS A BUSINESS OF FUNDAMENTALS THERE ISN'T ANY MAGIC I DON'T BELIEVE IN THINGS LIKE LEAPFROGGING HIS GOAL FOR CHRYSLER HE ADDS IS GETTING A LITTLE BIT BETTER EVERY SINGLE DAY HE HAS NO EGO MARVELS HOWARD KEHRL A FORMER VICE CHAIRMAN AT GM WHO SUPERVISED MR EATON FOR YEARS BEFORE HE JUMPED FROM GM EUROPE TO CHRYSLER LAST YEAR MAN IN THE MIDDLE SOME MIGHT ARGUE THAT THE ONE THING CHRYSLER HAD A SURPLUS OF WAS EGO MR EATON'S PROMOTION TO CHAIRMAN AND CHIEF EXECUTIVE OFFICER CAME AT THE EXPENSE OF ROBERT A LUTZ CHRYSLER'S PRESIDENT AND THE ARCHITECT OF THE COMPANY'S SUCCESSFUL NEW LINE OF AUTOMOBILES NO SHRINKING VIOLET THE CIGARSMOKING MR LUTZ OFTEN KNOCKED HEADS WITH MR IACOCCA WHILE MAKING NO SECRET OF HIS DESIRE TO SUCCEED HIM THAT MR EATON DURING HIS NINEMONTHLONG TRANSITION TO POWER WAS ABLE TO MAINTAIN AMICABLE RELATIONS WITH BOTH MEN AND KEEP MR LUTZ AT CHRYSLER IS A TESTAMENT TO THE SUCCESS OF HIS LOWKEY APPROACH SAYS MARYANN KELLER AN ANALYST WITH FURMAN SELZ IN NEW YORK FOR HIM TO BE ACCEPTED SPEAKS WELL OF HIM FOR MANY IN FACT THE CHANGE FROM MR IACOCCA'S BIGSTICK STYLE TO MR EATON'S MORE INFORMAL COLLEGIAL APPROACH IS A SHOCK MR IACOCCA LIKED SUMMONING UNDERLINGS TO HIS OFFICE AND REMINDING THEM THAT HE TOOK HIS MANAGEMENT STYLE FROM HIS MENTOR HENRY FORD II AN OLDSTYLE CORPORATE AUTOCRAT WHO DELIGHTED IN THE ARBITRARY USE OF POWER FEW PEOPLE EVER GOT TO TALK TO MR IACOCCA WITHOUT GOING THROUGH A SECRETARY MANY OF COURSE THINK MR IACOCCA'S IMPERIAL STYLE WAS JUST RIGHT FOR GUIDING CHRYSLER OUT OF THE FIX IT FOUND ITSELF IN DURING THE '80S IT WAS THE FORCE OF HIS PERSONALITY THAT SAVED CHRYSLER SAYS WENDY BEALE NEEDHAM AN ANALYST AT SMITH BARNEY SHEARSON MR EATON'S STYLE MAKES IT CLEAR THAT THE '90S WILL BE DIFFERENT HE IS FOND OF DROPPING IN SANS JACKET FOR INFORMAL CHATS WITH CHRYSLER SUBORDINATES HE OFTEN PICKS UP THE TELEPHONE HIMSELF IT IS SUCH A SWITCH THAT THE AUTO MAKER HAS CREATED A KIND OF POSTIACOCCA THERAPY FOR SENIOR EXECUTIVES CALLED THE SENIOR MANAGEMENT BEHAVIOR TEAM IT IS DESIGNED TO TEACH OFFICERS TO BE APPROACHABLE TO ENCOURAGE SUBORDINATES TO SPEAK UP TO LISTEN WHEN THEY DO AND TO BE WELL NICE TO THEIR COWORKERS EXECUTIVES ARE RELUCTANT TO EXPLAIN EXACTLY HOW THE TEAM WORKS BUT ONE VICE PRESIDENT DESCRIBES IT AS A KIND OF TRICKLEDOWN BEHAVIOR MODIFICATION THE THEORY IS IF YOU DON'T HAVE EYE CONTACT WITH YOUR PEOPLE THEY'RE NOT GOING TO HAVE EYE CONTACT WITH THEIR PEOPLE THE EXECUTIVE ADDS DECLARING EYE CONTACT BENEFICIAL IS HARDLY VISIONARY BUT IT IS A SMALL PART OF A SERIOUS EFFORT TO CHANGE THE CULTURE AT A COMPANY WHERE THE FORMER CHAIRMAN EXERCISED VETO POWER OVER EVERYTHING FROM AD COPY TO HUBCAP DESIGN MR EATON BY CONTRAST DOESN'T EVEN REVIEW ADVERTISEMENTS AND PRODUCT DESIGNS INSTEAD HE HAS CREATED TWO NEW VICE PRESIDENT POSITIONS ONE CHARGED WITH CUSTOMER SATISFACTION ANOTHER WITH CONTINUOUS IMPROVEMENT HE ALSO HAS LAUNCHED A PRODUCTIONSYSTEMS TEAM IN WHICH A SMALL GROUP OF MIDDLE MANAGERS HAS TROTTED THE GLOBE STUDYING WAYS TO IMPROVE MANUFACTURING THROUGHOUT THE RANKS HE WINS POINTS FOR ENCOURAGING INDEPENDENCE AND INITIATIVE EATON LETS YOU RUN YOUR BUSINESS SAYS THEODOR R CUNNINGHAM EXECUTIVE VICE PRESIDENT OF SALES AND MARKETING MR EATON'S FOLKSY PRAGMATIC APPROACH STEMS FROM HIS ROOTS IN THE SMALL TOWN OF ARKANSAS CITY KAN NEAR THE OKLAHOMA BORDER WHERE HE RETURNED RECENTLY TO SPEAK AT THE HIGHSCHOOL GRADUATION THE SON OF A RAILROAD WORKER AND A BEAUTICIAN MR EATON DELIVERED NEWSPAPERS WORKED AT MONTGOMERY WARD AND SPENT HIS SPARE TIME HANGING OUT AT BAY'S JUNKYARD AND MOODY'S MACHINE SHOP TWO ARKANSAS CITY MAINSTAYS AT AGE 11 HE BOUGHT HIS FIRST CAR A CHEVROLET FOR 10 AND SPENT ANOTHER 15 TO MAKE IT RUN HE STUDIED ENGINEERING AT THE UNIVERSITY OF KANSAS BECAUSE HE LOVED CARS AND HE LANDED A JOB AT GM IT WAS THE ONLY COMPANY HE CHOSE TO INTERVIEW WITH AT GM HE WORKED HIS WAY UP LARGELY THROUGH THE ENGINEERING STAFFS TO A POSITION OF VICE PRESIDENT IN CHARGE OF ADVANCED ENGINEERING REPORTING TO MR KEHRL AT THE TIME MR EATON IN HIS 40S WAS AN EXECUTIVE WHO RODE DIRT BIKES AS A HOBBY HIS CAREER RISING MUCH HIGHER THAN IT HAD I ASKED HIM DO YOU WANT TO BE ON THE EXECUTIVE COMMITTEE SOME DAY' REMEMBERS MR KEHRL HE STEPPED BACK A LITTLE SURPRISED AND SAID YEAH I GUESS SO' MR KEHRL CHUCKLES AT THE MEMORY OF SHOCKING MR EATON WITH THE POSSIBILITY OF CAREER ADVANCEMENT HE'S A VERY STRAIGHTFORWARD GUY MR KEHRL CREDITS MR EATON WITH PLAYING A SIGNIFICANT ROLE IN THE CREATION OF GM'S SATURN ITS HOTSELLING BUDGET CAR BY FORCING THE ADVANCEDENGINEERING AND MANUFACTURING STAFFS TO WORK TOGETHER THE EFFORT WENT SO FAR AS TO ENLIST UNION WORKERS TO HELP DESIGN THE SATURN IN A WAY THAT WOULD MAKE IT EASIER TO ASSEMBLE THAN STANDARD GM CARS BUT WHILE SATURN WAS IN THE GESTATION STAGE MR EATON ARGUED AGAINST THE RADICAL DECISION TO MAKE SATURN A SEPARATE GM DIVISION ON THE GROUND THAT SATURN'S COOPERATIVE APPROACH TO CAR BUILDING SHOULD BE SPREAD GMWIDE WITH HINDSIGHT AND GM STRUGGLING TO MAKE ITSELF MORE EFFICIENT MR EATON'S APPROACH LOOKS INSIGHTFUL PRAGMATISM WON ANOTHER ROUND IN MR EATON'S CAREER WHEN HE HEADED GM EUROPE FROM 1988 TO 1992 HE INHERITED FROM JOHN F SMITH JR NOW GM'S CHIEF EXECUTIVE A DIVISION THAT HAD TURNED AROUND AND WAS SOLIDLY IN THE BLACK DURING MR EATON'S TENURE HE WATCHED HIS CHIEF COMPETITOR CARL W HAHN CHAIRMAN OF VOLKSWAGEN AG LAUNCH A VISIONARY EFFORT TO MAKE VW INTO EUROPE'S FIRST GLOBAL AUTO MAKER VW THOUGH IT WAS HARDLY AN EFFICIENT PRODUCER OF CARS AT HOME SPENT HEAVILY TO INVEST IN CZECHOSLOVAKIA CHINA AND MEXICO WHILE ACQUIRING SEAT SA THE SPANISH CAR MAKER THEN CAME GLOBAL RECESSION VW'S 30 BILLION GLOBAL GAMBIT HAS LARGELY BEEN A BUST AND VW IS AWASH IN RED INK MR EATON BY CONTRAST EASED GM INTO NEW EAST EUROPEAN MARKETS WHILE CONCENTRATING ON IMPROVING PRODUCTIVITY AT EXISTING EUROPEAN PLANTS THE RESULT DESPITE A SUDDEN DOWNTURN IN EUROPEAN SALES ABOUT 17 THIS YEAR GM EUROPE IS EXPECTED TO FINISH THE YEAR WITH A PROFIT I USED TO SIT BACK AND THINK MAN I DIDN'T UNDERSTAND SOMETHING MR EATON SAYS OF VW'S EXPANSION WELL THE FACT IS THEY WERE DOING ALL THAT AS OPPOSED TO WORKING ON THEIR COSTS AND GETTING BETTER DESPITE HIS RISE AT GM MR EATON NEVER HAD A CHANCE TO TAKE THE TOP SPOT THERE IN PART BECAUSE HE IS ONLY A YEAR YOUNGER THAN GM'S CEO MR SMITH WHEN CHRYSLER CAME CALLING ROBERT C STEMPEL THEN GM'S CHAIRMAN MADE LITTLE EFFORT TO PERSUADE MR EATON TO STAY INFURIATING THE COMPANY'S OUTSIDE DIRECTORS MR EATON SEEMS DETERMINED TO BRING HIS LOWKEY STYLE TO OTHER CHRYSLER ENDEAVORS ONLY A YEAR AGO CHRYSLER'S ANNUAL DEALER CONVENTION WAS HELD IN LAS VEGAS AND BECAME A LAVISH TRIBUTE TO MR IACOCCA AND HIS LEADERSHIP ACTORS COMEDIANS AND TIP O'NEILL PAID THEIR RESPECTS FRANK SINATRA PERFORMED THE FINALE SINGING MY WAY WHILE A GIANT VIDEO SCREEN RECAPPED THE HIGH POINTS OF MR IACOCCA'S CAREER THIS YEAR MR EATON INVITED DEALERS TO DETROIT TO MEET THE FAMILY THEY GOT A TOUR OF A CHRYSLER LABORATORY THEN A CHANCE TO DISCUSS THEIR CONCERNS WITH MR LUTZ AND OTHER VICE PRESIDENTS IN A SORT OF PHIL DONAHUESTYLE CHAT SESSION ALL THE WHILE MR EATON STAYED MAINLY IN THE BACKGROUND THE FINALE HUNDREDS OF CHRYSLER TEAM MEMBERS RUSHED ON STAGE CLAPPING AND WAVING WHITE BASEBALL CAPS AS A GOSPEL CHOIR SANG EXUBERANTLY IT'S A BRAND NEW DAY IT'S A BRAND NEW DAY OH YEAH IT'S A BRAND NEW DAY SEE RELATED LETTER LETTERS TO THE EDITOR AS AN INDUSTRY MATURES THE UPSTARTS CLOSE IN WSJ OCT 28 1993 9310040072 YY93 MM10 9310280064 931028 COMPETING CREEDS CLINTON TEAM IS SPLIT ABOUT ANTITRUST POLICY AS BIG MERGERS WAIT BEST BET IS IT WON'T BLOCK CONSOLIDATIONS IN HEALTH HIGH TECH AND DEFENSE COACH RATHER THAN REFEREE BY BOB DAVIS AND JOE DAVIDSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON ANNE BINGAMAN HAS A BLUNT MESSAGE FOR CORPORATE AMERICA THE ANTITRUST COPS ARE BACK ON THE BEAT DON'T ASK FOR EXEMPTIONS AND DON'T TRY TO SWAY HER WITH FANCY ARGUMENTS ABOUT THE GLOBAL ECONOMY TOUGH ANTITRUST ENFORCEMENT IS NECESSARY TO ENSURE COMPETITION AND ADVANCE TECHNOLOGICAL CHANGE SAYS THE ASSISTANT ATTORNEY GENERAL FOR ANTITRUST BUT DOWN THE STREET AT THE WHITE HOUSE AND THE COMMERCE DEPARTMENT THERE IS A DIFFERENT MESSAGE WELCOME CORPORATE AMERICA THE PRESIDENT AND VICE PRESIDENT WRAP THEIR ARMS AROUND THE BIG THREE AUTO MAKERS THE VERY SYMBOL OF AN AMERICAN OLIGOPOLY AND ENLIST THEM TO JOIN FORCES ON BIG PROJECTS TO LEAPFROG JAPANESE TECHNOLOGY PRIVATELY WHITE HOUSE ECONOMIC ADVISERS CHEER THE ROUND OF MERGERS IN THE TELECOMMUNICATIONS FIELD BELIEVING THEY WILL FOSTER CREATION OF THE HIGHSPEED COMPUTER NETWORKS THEY CALL INFORMATION SUPERHIGHWAYS AND TO CURB HEALTHCARE SPENDING THE ADMINISTRATION WANTS GIANT ALLIANCES OF PROVIDERS TO TAKE SHAPE ANTITRUST POLICY RUNS ALONG ONE OF THE FAULT LINES OF THE CLINTON ADMINISTRATION SEPARATING POPULIST TRUSTBUSTERS FROM NEWAGE TECHNOLOGISTS RIGHT NOW THE TWO FORCES EXIST IN A RELATIVELY STABLE CONDITION BUT THAT COULD EXPLODE IN DISSENSION AS THE GOVERNMENT TAKES UP SUCH HIGHPROFILE DEALS AS THE BELL ATLANTIC CORPTELECOMMUNICATIONS INC MERGER AND SORTS OUT ITS POLICY IN THE HIGHTECH HEALTH AND DEFENSE INDUSTRIES ALL OF THOSE INDUSTRIES ARE IN FLUX WITH FARREACHING NEW MERGER PLANS POPPING UP ALMOST WEEKLY THE SPONSOR OF THE BIGGEST DEAL OF ALL BELL ATLANTIC WAS DEFENDING ITS COMPETITIVE MERITS YESTERDAY BEFORE A SKEPTICAL SENATE ANTITRUST SUBCOMMITTEE MEANTIME CONGRESS GOT DETAILS OF WHAT WOULD BE THE MOST SWEEPING HEALTHCARE OVERHAUL THE NATION HAS EVER SEEN HOSPITAL CHAINS ARE MERGING ACROSS STATE LINES AND AS THE DIGITAL REVOLUTION BULLDOZES BOUNDARIES IN ELECTRONIC INDUSTRIES THE ADMINISTRATION'S ANTITRUST STANCE BECOMES A MATTER OF CRUCIAL IMPORTANCE IN THE END DESPITE ITS DIVISIONS FEW PEOPLE CLOSE TO THE ADMINISTRATION BELIEVE THE CLINTON TEAM WILL DO MUCH TO SLOW A CONCENTRATION OF CORPORATE POWER CLINTONITES VIEW THEMSELVES AS COACHES RATHER THAN REFEREES SAYS PETER MILLS CHIEF EXECUTIVE OF THE US DISPLAY CONSORTIUM AN ELECTRONICS VENTURE LAUNCHED THIS SUMMER THAT INCLUDES AMERICAN TELEPHONE & TELEGRAPH CO AND A NUMBER OF SMALLER COMPANIES A COACH TELLS YOU WHAT YOU CAN DO A REFEREE BLOWS A WHISTLE ON YOU AND TELLS YOU WHAT YOU CAN'T DO US DISPLAY IN AUSTIN TEXAS RECEIVES 20 MILLION A YEAR IN FEDERAL FUNDS TO TRY TO BUILD A FLATSCREEN TV INDUSTRY THAT WILL RIVAL JAPAN'S PHILOSOPHICALLY MR CLINTON'S APPROACH TO COMPETITION AND ANTITRUST IS MUCH DIFFERENT FROM THAT OF HIS REPUBLICAN PREDECESSORS EVEN THOUGH THE POLICY RESULTS MAY NOT DIFFER ALL THAT MUCH DURING THE REAGAN YEARS AND TO A LESSER DEGREE UNDER PRESIDENT BUSH FEDERAL OFFICIALS EXPRESSED UNBOUNDED CONFIDENCE THAT FREE MARKETS WOULD BUILD THE ECONOMY ENCOURAGE COMPETITION AND HELP CONSUMERS IN THE CLINTON ERA THAT FAITH HAS SHIFTED TO TECHNOLOGY AS THE ENGINE OF THE ECONOMY AND PROTECTOR OF THE CONSUMER BUT NEITHER IDEOLOGY LEAVES MUCH ROOM FOR TRADITIONAL ANTITRUST ENFORCEMENT WHICH USES LAWSUITS AND REGULATION TO GUIDE THE ECONOMY THE BIGGEST CHALLENGE TO RIGOROUS ANTITRUST EFFORTS WILL COME FROM THOSE WITHIN THE ADMINISTRATION WHO ARE INTERESTED IN PROMOTING INDUSTRIAL POLICY FOSTERING SPECIFIC INDUSTRIES SAYS KEVIN ARQUIT FORMER DIRECTOR OF THE FEDERAL TRADE COMMISSION'S COMPETITION BUREAU AND WHO IS NOW WITH THE ROGERS & WELLS LAW FIRM MS BINGAMAN PROMISES VIGOROUS ANTITRUST ENFORCEMENT AND SHE HAS MOVED QUICKLY TO SHOW THAT SHE MEANS IT THE STANFORD LAWSCHOOL GRADUATE AND VETERAN ANTITRUST LAWYER RESCINDED A REAGAN ADMINISTRATION PRACTICE ALLOWING CERTAIN PRICE FIXING BY MANUFACTURERS AND RETAILERS BACKED LEGISLATION TO LIMIT INSURANCEINDUSTRY EXEMPTIONS FROM ANTITRUST LAWS AND MOVED QUICKLY TO PURSUE ANTITRUST ALLEGATIONS AGAINST MICROSOFT CORP THE COMPUTERSOFTWARE BEHEMOTH AFTER THE FTC DEADLOCKED ON ITS INVESTIGATION THE NEW ANTITRUST CHIEF IS MARRIED TO DEMOCRATIC SEN JEFF BINGAMAN OF NEW MEXICO AND ATTORNEY GENERAL JANET RENO CONCEDES THAT HER INITIAL REACTION TO THE APPOINTMENT WAS HUMPH THERE'S THE WHITE HOUSE TRYING TO PUSH A SENATOR'S WIFE ON ME BUT MS RENO SAYS SHE WAS TERRIBLY IMPRESSED BY MS BINGAMAN WHO IS SLOWLY EDUCATING ME IN ANTITRUST MS BINGAMAN HAILS THE TRADITIONAL INDEPENDENCE OF THE ANTITRUST DIVISION AND SAYS THE WHITE HOUSE HASN'T CALLED ONCE TO INFLUENCE OUR DECISIONS EVEN THOUGH HILLARY RODHAM CLINTON ANNOUNCED NEW ANTITRUST GUIDELINES CONCERNING HEALTH CARE AT A JUSTICE DEPARTMENT CEREMONY MS BINGAMAN SAYS THOSE GUIDELINES ACTUALLY WERE A JUSTICE AND FTC INITIATIVE IN ANY CASE WHITE HOUSE AIDES ARE LIKELY TO BE CHARY ABOUT INTERFERING WITH JUSTICE DEPARTMENT INVESTIGATIONS FOLLOWING THE RUCKUS RESULTING FROM THEIR INVOLVEMENT IN A FEDERAL BUREAU OF INVESTIGATION PROBE OF THE WHITE HOUSE TRAVEL OFFICE NEVERTHELESS PRESSURE IS BOUND TO MOUNT COMMERCE SECRETARY RON BROWN SAYS HE EXPECTS TO CONDUCT A FULL REVIEW OF EVERYTHING THAT AFFECTS COMPETITIVENESS INCLUDING ANTITRUST THROUGH THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL HE ADDS THAT HIS AGENCY WANTS TO REVIEW THE BELL ATLANTICTCI LINKUP ALTHOUGH THAT CLEARLY FALLS WITHIN JUSTICE'S PROVINCE AND HE EVEN SAYS HE MAY SEEK ANTITRUST EXEMPTIONS FOR HIGHTECH INDUSTRIES WE'LL SEEK TO HAVE INPUT INTO ANTITRUSTENFORCEMENT DECISIONS HE SAYS FROM THE PERSPECTIVE OF BUSINESS AND INDUSTRY OTHER SENIOR ADMINISTRATION OFFICIALS CAN HARDLY BE COUNTED AS FERVENT TRUSTBUSTERS EITHER THE PRESIDENT'S TOP LEGAL ADVISER WHITE HOUSE COUNSEL BERNARD NUSSBAUM SPENT MUCH OF HIS CAREER AS A TAKEOVER LAWYER AT WACHTELL LIPTON ROSEN & KATZ ONE OF THE BIGGEST PLAYERS IN MERGERS AND ACQUISITIONS NATIONAL ECONOMIC COUNCIL CHIEF ROBERT RUBIN WAS COCHAIRMAN OF GOLDMAN SACHS & CO DURING THE M&A HEYDAY IN THE 1980S HIS DEPUTY BOWMAN CUTTER HEADED COOPERS & LYBRAND'S CONSULTING OPERATIONS WHICH ADVISED A NUMBER OF BIG TELECOMMUNICATIONS FIRMS ON FOREIGN ACQUISITIONS SEN HOWARD METZENBAUM OF OHIO AN OLDSTYLE TRUSTBUSTER WHO HEADS THE ANTITRUST SUBCOMMITTEE DERIDES THE WHITE HOUSE'S WALL STREET PHILOSOPHIES DEVISED BY PEOPLE MAKING BIG BUCKS BUT FEW EXPECT THE ADMINISTRATION TO HEED HIS CALL AND SUPPORT LARGESCALE ANTITRUST ACTIONS EVEN IN THE MICROSOFT CASE THE ANTITRUST DIVISION DOESN'T SUGGEST THAT THE COMPANY SHOULD BE BROKEN UP AS THE TELEPHONE SYSTEM WAS A DECADE AGO AT MOST SAY ANTITRUST EXPERTS THE DIVISION MAY TRY TO FORCE MICROSOFT TO ACCEPT PROVISIONS TO LICENSE ITS SOFTWARE ON FAIR TERMS TO ALL COMERS MICROSOFT COULD ALSO BE ASKED TO GIVE ADVANCE NOTICE OF CHANGES IN TECHNOLOGY EXACTLY HOW FAR THE ADMINISTRATION WILL GO IN PRESSING ANTITRUST ACTIONS WILL COME CLEAR AS IT MAKES DECISIONS IN THESE THREE INDUSTRIES IN JUNE CHIPSOFT INC THE LARGEST SELLER OF TAXPREPARATION SOFTWARE CALLED OFF PLANS TO ACQUIRE ITS BIGGEST COMPETITOR AFTER THE JUSTICE DEPARTMENT THREATENED TO CHALLENGE THE ACQUISITION IN COURT ALSO THAT MONTH THE DEPARTMENT ENGINEERED A CONSENT DECREE IN WHICH PRIMESTAR PARTNERS LP A SATELLITETV VENTURE THAT INCLUDES TCI TIME WARNER INC AND OTHER BIG CABLE COMPANIES AGREED NOT TO DISCRIMINATE AGAINST RIVAL FIRMS BUT THOSE WERE FAIRLY SMALL CASES THE CLINTON ADMINISTRATION HAS YET TO SAY HOW IT WILL VIEW AT&T'S ACQUISITION OF MCCAW CELLULAR COMMUNICATIONS INC THE BELL ATLANTICTCI MERGER OR MANY OTHER NEW COMBINATIONS ACROSS THE CABLE/TELEPHONE/COMPUTER DIVIDE ONE HIGHPROFILE PROPOSAL IT HAS APPROVED IS A VIACOMPARAMOUNT COMBINATION IT HASN'T RULED ON THE COMPETING BID FOR PARAMOUNT COMMUNICATIONS FROM QVC NETWORK INC THOSE WHO FEEL HIGHTECH DEALS DEMAND NEW THINKING IN ANTITRUST SAY THAT TECHNOLOGY IS CHANGING SO QUICKLY THAT TRADITIONAL WAYS OF VIEWING BIG MERGERS ARE QUICKLY BECOMING OBSOLETE EVALUATING CORPORATE MERGERS WAS A RELATIVELY STRAIGHTFORWARD TASK A DECADE AGO WHEN DEALS BROUGHT TOGETHER COMPANIES WITH EXISTING PRODUCTS SUCH AS FOOD AND CIGARETTES AFTER ADDING THE MERGING FIRMS' MARKET SHARES OFFICIALS COULD DECIDE WHETHER THE ALLIANCE THREATENED TO LIMIT COMPETITION AND RAISE PRICES BUT THE CALCULATIONS ARE MUCH TOUGHER IN TECHNOLOGIES THAT ARE JUST DEVELOPING AND MARKETS THAT DON'T YET EXIST YOU'RE TRYING TO MAKE AN INFORMED ESTIMATE IN THE PRESENT OF SOMETHING THAT WON'T BE ABLE TO BE SEEN OR FELT OR TOUCHED UNTIL WELL INTO THE FUTURE SAYS WILLIAM LYNK AN ECONOMIST AT LEXECON INC A CHICAGO CONSULTING FIRM MOREOVER WHILE THE DRIVING FORCE IN MANY 1980S MERGERS WAS SIMPLY INDIVIDUAL COMPANIES' PROFIT GOALS THESE MERGERS NOW ARE BEING DRIVEN BY CHANGES IN THE UNDERLYING INDUSTRIES THEMSELVES SAYS GARRET RASMUSSEN AN ANTITRUST SPECIALIST AT THE LAW FIRM PATTON BOGGS & BLOW TO KENT HUGHES ASSOCIATE DEPUTY SECRETARY OF COMMERCE SUCH CHANGES MEAN YOU THINK OF HOW DYNAMIC THESE INDUSTRIES ARE AND WHERE THE COMPETITION WILL COME FROM IN THE FUTURE THAT'S DIFFERENT FROM THE CONCERN PEOPLE HAVE ABOUT MORE TRADITIONAL INDUSTRIES BUT MS BINGAMAN TAKES THE POPULIST LINE AS A PLAINTIFFS' LAWYER SHE REPRESENTED FLORIDA CONSUMERS AGAINST BELLSOUTH CORP FOR CHARGING CUSTOMERS FOR AN INSIDE WIRING SERVICE THEY DIDN'T HAVE BELLSOUTH ENDED UP PAYING 16 MILLION IN FINES AND RESTITUTION YOU CAN'T SAY THAT HIGHTECH IS OFF LIMITS TO ANTITRUST SHE SAYS FIFTY YEARS AGO YOU COULD HAVE SAID STEEL WAS OFF LIMITS WHATEVER THE BIG INDUSTRY OF THE MOMENT IS SHE WON'T COMMENT ON THE SPECIFIC CASES PRIVATELY HOWEVER HER POLICY RIVALS AMONG THE ECONOMIC AND TECHNOLOGY ADVISERS TO THE PRESIDENT ARE ELATED AT THE TREND TOWARD CONSOLIDATION OF TECHNOLOGIES THE RAPID PACE OF TECHNOLOGICAL CHANGE AND INTERNATIONAL COMPETITION BY THEMSELVES THEY ARGUE ARE NEARLY SUFFICIENT GUARANTEES THAT US COMMUNICATIONS GIANTS WON'T BE ABLE TO MONOPOLIZE THE DOMESTIC MARKET STILL THE ADMINISTRATION MAY INSIST ON AT LEAST ONE MAJOR RESTRICTION TELEPHONE COMPANIES AND CABLE COMPANIES ALIKE WOULD BE REQUIRED TO PROVIDE ACCESS TO THEIR NETWORKS TO ALL COMPANIES AT FAIR PRICES IN DEFENSE THERE IS ONE HUGE CUSTOMER THE US MILITARY WHICH PLANS TO SLASH ITS PURCHASES LEAVING SUPPLIERS SCRAMBLING TO MERGE CONTRACTORS WORRY THAT THESE MERGERS MAY BE CHALLENGED ON ANTITRUST GROUNDS AS THE PENTAGON FEARS THAT IT WON'T HAVE AN ADEQUATE NUMBER OF SUPPLIERS AND THE REMAINING MEGAFIRMS COULD GOUGE IT ON PRICES AND STALL TECHNOLOGY A RECENT MEETING OF A PENTAGON TASK FORCE ON ANTITRUST CRYSTALLIZED THIS CLASH BERNARD SCHWARTZ CHIEF EXECUTIVE OF LORAL CORP A DEFENSE CONTRACTOR THAT HAS GROWN QUICKLY THROUGH ACQUISITIONS SUGGESTED THAT IF AT THE END OF THE DAY THE MERGER IS IMPORTANT TO THE DEPARTMENT OF DEFENSE IS THAT MORE IMPORTANT THAN ANTITRUST GUIDELINES DON'T COUNT ON IT REPLIED THE FTC'S STEVEN NEWBORN WHILE NOTING THE SIGNIFICANT DEFERENCE ALREADY GIVEN THE PENTAGON HE REMINDED MR SCHWARTZ THAT AT THE END OF THE DAY WE HAVE TO MAKE A DETERMINATION BECAUSE WE HAVE A STATUTORY RESPONSIBILITY LATER MS BINGAMAN DISMISSED MR SCHWARTZ'S ARGUMENT AS A CALL FOR AN EXEMPTION WHICH SHE WASN'T ABOUT TO GRANT NEVERTHELESS THE PENTAGON IS TESTING OUT A TECHNOCRATIC RATIONALE TO THE ANTITRUST PROBLEM THAT INTRIGUES JUSTICE DEPARTMENT OFFICIALS KENNETH FLAMM A SENIOR DEFENSE OFFICIAL IN CHARGE OF COMMERCIAL TECHNOLOGY PREDICTS FLATLY THAT THE DEFENSE INDUSTRY WILL CEASE TO EXIST UNDER ITS NEW APPROACH HE EXPLAINS THE PENTAGON WOULD ELIMINATE MUCH OF THE MINDNUMBING PAPERWORK AND EXOTIC SPECIFICATIONS THAT LIMIT THE NUMBER OF COMPANIES CAPABLE OF BIDDING ON DEFENSE JOBS AND INSTEAD BUY MORE OFFTHESHELF PRODUCTS FROM A BROAD RANGE OF COMMERCIAL COMPANIES IF THE DEFENSE MARKET MERGES WITH THE COMMERCIAL MARKET HE ARGUES WE'D WIND UP WITH MORE SUPPLIERS AND LESS CONCERN THAT MERGERS WOULD DANGEROUSLY CONCENTRATE POWER THIS MASTER PLAN HE ACKNOWLEDGES WOULDN'T COMPLETELY ELIMINATE ANTITRUST PROBLEMS BECAUSE ONLY A FEW COMPANIES HAVE THE EXPERTISE TO BUILD SOME WEAPONS SYSTEMS BUT MANY PARTS COULD BE COMMERCIALLY PURCHASED HOW FAR THIS RATIONALE WILL GET IS UNCLEAR STILL ALTHOUGH THE ANTITRUST ISSUES ARE DIFFERENT IN DEFENSE THAN IN COMMUNICATIONS THE RESULT FROM THE CLINTON ADMINISTRATION IS LIKELY BE THE SAME FEW CHALLENGES TO MERGERS MS BINGAMAN HAS REJECTED A PHARMACEUTICAL MANUFACTURERS' ASSOCIATION REQUEST TO LET MEMBER COMPANIES COOPERATE IN A VOLUNTARY PROGRAM TO LIMIT PRICE RISES ANY PRICEFIXING AGREEMENT IS ILLEGAL SHE SAID ADDING THAT AGREEMENTS ON CEILINGS OFTEN BECOME AGREEMENTS ON PRICE INCREASES THE WHITE HOUSE HAD NOTHING TO DO WITH HER DECISION ONE THAT COULD COMPLICATE MR CLINTON'S WISH THAT THE HEALTHCARE INDUSTRY HOLD DOWN PRICES ON ITS OWN DESPITE MS BINGAMAN'S RULING NEW HEALTHCARE ANTITRUST GUIDELINES FROM THE JUSTICE DEPARTMENT AND THE FTC ANTICIPATE AND ENCOURAGE CONSOLIDATION IN THE INDUSTRY UNDER CERTAIN CONDITIONS THE GUIDELINES SAY DOCTORS MAY COLLABORATE AND JOINTLY SELL THEIR SERVICES AS LONG AS THEY DON'T GOBBLE UP MORE THAN 20 OF THE PARTICULAR MARKET MS BINGAMAN HAS SAID IT WOULD BE EXPECTED UNDERSTANDABLE AND REASONABLE FOR OTHER INDUSTRIES TO LOOK UPON THE HEALTHCARE GUIDELINES AS YARDSTICKS FOR THEIR OWN BUSINESSES ROBERT BLOCH A LONGTIME ANTITRUST DEPARTMENT OFFICIAL WHO LEFT THE DEPARTMENT IN MARCH SAYS JUST AS IMPORTANT AS THE CONSOLIDATION GUIDELINES IS A VOW BY THE ANTITRUST DIVISION AND THE FTC TO ISSUE ADVISORY OPINIONS WITHIN THREE MONTHS IF A PROPOSED MERGER MEETS THOSE RULES THEREBY ENCOURAGING COMPANIES TO AT LEAST CONSIDER SUCH COMBINATIONS UNDER PREVIOUS ADMINISTRATIONS THE GOVERNMENT WOULD TAKE AS LONG AS A YEAR TO COME UP WITH THOSE OPINIONS THERE IS EVIDENCE THAT IN THE HEALTHCARE INDUSTRY MERGERS SOMETIMES REDUCE PRICES A 1992 STUDY BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES' INSPECTOR GENERAL FOUND THAT MERGED HOSPITALS REDUCED THE COSTS OF MEDICAL TREATMENTS AND OTHER SERVICES BY 104 WHILE THE SAME COSTS AT A CONTROL GROUP OF NONMERGED HOSPITALS INCREASED 297 EDWARD FELSENTHAL IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9310280063 931028 BUSINESS BRIEF HANSON PLC BEAZER DIVISION OF US ARM TO REGROUP INTO 2 ENTITIES HANSON INDUSTRIES THE US ARM OF HANSON PLC SAID IT RESTRUCTURED THE EASTERN OPERATIONS OF ITS BEAZER DIVISION ALONG BUSINESS LINES THE RESTRUCTURING WON'T RESULT IN ANY LAYOFFS A SPOKESWOMAN SAID BEAZER'S CONSTRUCTION MATERIALS AND SERVICES BUSINESSES WILL CONSIST OF TWO NEW ENTITIES SPECTRUM CONSTRUCTION GROUP A CONSTRUCTION COMPANY AND BENCHMARK MATERIALS CO A SUPPLY COMPANY INCLUDING CRUSHED STONE CONCRETE AND ASPHALT DAVID EASTWOOD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF SPECTRUM HE HELD A SIMILAR POSITION WITH BEAZER'S TIDEWATER DIVISION PHILIP MICKELSON WHO HAD BEEN PRESIDENT OF ONE OF BEAZER'S REGIONAL DIVISIONS WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF BENCHMARK FREDERICK C MOORE ANOTHER FORMER REGIONAL PRESIDENT BECAME BENCHMARK CHAIRMAN IN A NONEXECUTIVE ROLE HANSON PLC IS A BRITISHAMERICAN INDUSTRIAL MANAGEMENT COMPANY 9310280062 931028 LETTERS TO THE EDITOR AS AN INDUSTRY MATURES THE UPSTARTS CLOSE IN YOUR OCT 4 PAGEONE ARTICLE ON CHRYSLER CEO ROBERT EATON IS AN EXAMPLE OF WHAT IS WRONG WITH CORPORATE AMERICA LACK OF VISION THOSE WHO DON'T HAVE IT ARE PEJORATIVE OF IT TO COVER THEIR DEFICIENCY AND THOSE WHO DO HAVE IT STEP OUT AHEAD NOW APPARENTLY VISION IS OUT AND HARDHEADEDNESS IS IN HARDHEADEDNESS INEVITABLY LEADS TO THE GRAVE YOU CALL THE AUTOMOTIVE BUSINESS A MATURE INDUSTRY THE WAGONMAKING BUSINESS WAS A MATURE INDUSTRY UNTIL SOMEONE BOLTED ON AN INTERNAL COMBUSTION ENGINE THE PERSONAL TRANSPORTATION BUSINESS IS FAR FROM MATURE WHAT IS MATURE IS THE INTERNALCOMBUSTION ENGINE WE NEED SOMEONE WITH VISION AT ONE OF THE BIG THREE TO REALIZE THAT THE BILLIONS BEING SPENT ON IMPROVING THIS MATURE POWER PLANT IS ONLY MAKING GAINS AT THE EDGES AND IS FAR FROM JUSTIFIED I WAS ASSOCIATED WITH THE MAGNET INDUSTRY IN THE 1960S AND ANALYSTS WERE CALLING US A MATURE INDUSTRY NOT A PLACE TO INVEST THEN CAME THE CERAMIC MAGNET BUT WE WERE A MATURE INDUSTRY THEN WE STARTED MESSING WITH BARIUM TITINATE PRODUCTS BUT WE WERE A MATURE INDUSTRY IT WAS BUT A STEP AT THAT TIME BETWEEN THESE SPECIAL CERAMICS AND COMPUTER CHIPS BUT WE WERE A MATURE INDUSTRY THERE WAS NO VISION AND THIS MATURE INDUSTRY LOST THE GREATEST BUSINESS IN THE WORLD TO A BUNCH OF UPSTARTS WITH VISION IF THE AUTO INDUSTRIES ARE TO BE RUN AS MATURE INDUSTRIES THEY ARE VULNERABLE TO THE NEXT BUNCH OF UPSTARTS WITH VISION AND THEIR VERY SIZE WILL WORK AGAINST THEM 9310280061 931028 BUSINESS BRIEF DOLE FOOD CO NET FELL 76 IN 3RD QUARTER ON UNSTABLE BANANA MARKETS DOLE FOOD CO REPORTED THIRDQUARTER NET INCOME OF 51 MILLION OR NINE CENTS A SHARE A SHARP 76 DROP FROM THE YEARAGO PERIOD DOLE ATTRIBUTED THE WEAKER RESULTS WHICH INCLUDED A ONETIME NONCASH CHARGE OF 25 MILLION FOR DEFERRED TAX LIABILITY TO UNSTABLE BANANA MARKETS A YEAR EARLIER DOLE OF WESTLAKE VILLAGE CALIF HAD NET OF 213 MILLION OR 36 CENTS A SHARE REVENUE ROSE 4 TO 1 BILLION FROM 957 MILLION THE UNCERTAINTY IN THE BANANA MARKETS DUE IN PART TO THE NEW REGULATIONS OF THE EUROPEAN COMMUNITY AND THE EFFECTS OF THE WORLDWIDE ECONOMIC RECESSION CONTINUE TO AFFECT DOLE SAID DAVID H MURDOCK CHAIRMAN OF THE FOOD PRODUCER REAL ESTATE CONCERN AND RESORT OPERATOR DOLE SAID EC BANANA QUOTAS IMPOSED IN JULY LOWERED PRICES IN NORTH AMERICAN AND NONEC EUROPEAN BANANA MARKETS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE DOLE SHARES FELL 1625 TO 28375 9310280060 931028 MARKETING & MEDIA ADVERTISING BEAVIS AND BUTTHEAD' ATTRACTS AND REPELS VARIOUS ADVERTISERS BY KEVIN GOLDMAN BEAVIS AND BUTTHEAD FEATURING THE MISHAPS OF TELEVISION'S MOST VISIBLE AND SOME SAY OFFENSIVE ANTIHEROES IS HAVING TROUBLE ATTRACTING LARGE CORPORATE SPONSORS TO BE SURE SEVERAL BIGNAME SPONSORS ARE ADVERTISING ON MTV'S POPULAR BEAVIS AND BUTTHEAD INCLUDING LIFE SAVERS SPRINT DENTYNE GUM AND WRIGLEY'S DOUBLEMINT GUM BUT AUTOMOBILE MANUFACTURERS AND OTHER CORPORATE GIANTS SUCH AS AMERICAN TELEPHONE & TELEGRAPH HAVE TURNED THEIR BACKS ON THE CARTOON SERIES A SPOKESWOMAN FOR MTV SAYS THE SHOW AIMED AT THE MTV TARGET DEMOGRAPHIC OF THOSE 12 TO 34 YEARS OLD ISN'T FOR EVERYONE THE SHOW IS A PARTICULARLY TOUCHY SUBJECT WITH AT&T THE COMPANY HAS SPECIFICALLY REQUESTED THAT ITS COMMERCIALS NOT RUN ON BEAVIS AND BUTTHEAD WE DON'T CONSIDER IT AN APPROPRIATE ENVIRONMENT FOR OUR ADVERTISING SAYS DICK MARTIN VICE PRESIDENT OF PUBLIC RELATIONS AND CORPORATE ADVERTISING WE TRY TO SELECT SHOWS MORE NEUTRAL IN TONE AT&T'S RIVAL MCI COMMUNICATIONS SAYS IT ALSO PREFERS NOT TO ADVERTISE ON THE SHOW BUT BROADCAST LOGS KEPT BY MTV SHOW THAT TWO MCI ADS RAN ON THE BEAVIS PROGRAM MONDAY NIGHT AN MTV SPOKESWOMAN SAYS SOME ADS MAY HAVE BEEN PLACED IN THE SHOW INADVERTENTLY WHEN IT SWITCHED TIME PERIODS EARLIER THIS MONTH NYPD BLUE A TV DRAMA WITH FOUL LANGUAGE AND PARTIAL NUDITY IS ALSO HAVING TROUBLE ATTRACTING MAJOR SPONSORS ALTHOUGH NOT NEARLY AS MUCH SINCE THE SHOW'S RATINGS PLACED IT IN THE TOP 20 ACCORDING TO AC NIELSEN RATINGS MAKING IT THE HIGHEST RANKED NEW DRAMA TO PREMIERE IN THE 199394 PRIME TIME SEASON BUT BEAVIS AND BUTTHEAD HAS BECOME EVEN MORE CONTROVERSIAL SINCE AN OHIO WOMAN CONTENDED THAT THE SHOW INSPIRED HER SON TO SET FIRE TO HER FAMILY'S HOUSE RESULTING IN THE DEATH OF HER TWOYEAROLD DAUGHTER THE SON SHE SAID WAS INFLUENCED BY THE CARTOON CHARACTERS' TENDENCY TO PLAY WITH FIRE ADVERTISERS WHO CHOSE TO SPONSOR BEAVIS AND BUTTHEAD WILL FIND THEMSELVES LISTED IN NEXT MONTH'S ISSUE OF THE AMERICAN FAMILY ASSOCIATION JOURNAL WHICH SAYS IT HAS A CIRCULATION OF 11 MILLION THE PERIODICAL IS PUBLISHED BY THE CONSERVATIVE WATCHDOG DONALD WILDMON WHO THIS SUMMER LAUNCHED A CAMPAIGN AGAINST NYPD BLUE AND ITS SPONSORS RANDALL MURPHREE EDITOR OF THE JOURNAL SAYS THE CARTOON CHARACTERS ARE UNDESIRABLE ROLE MODELS EVEN IF THEY STOPPED PLAYING WITH FIRE THEY HAVE SCATOLOGICAL HUMOR AND FILTHY LANGUAGE MR MURPHREE PLANS TO ENCOURAGE READERS TO EXPRESS THEIR DISPLEASURE TO ADVERTISERS ON THE CARTOON SHOW IT DOESN'T IMPRESS MR MURPHREE THAT MTV MOVED THE SHOW TO 1030 PM FROM 7 PM JUST DAYS AFTER THE OHIO FIRE INCIDENT OLDER KIDS CAN WATCH THIS AND THE BEHAVIOR CAN FILTER DOWN HE SAYS THE CARTOON VIOLENCE HOWEVER DOESN'T BOTHER SOME ADVERTISERS WE SELECT OUR PROGRAMMING TO REACH A WIDE AND DIVERSE RANGE OF ADULT BEER DRINKERS SAYS A SPOKESMAN FOR MILLER GENUINE DRAFT A UNIT OF MILLER BREWING WE DON'T SUPPORT ANY POINT OF VIEW EXPRESSED IN THE PROGRAM THAT PASSIVE ROLE IS ALSO VOICED BY SPRINT THE TELECOMMUNICATIONS COMPANY SPECIFICALLY BUYS MTV'S SHOW UNPLUGGED AND OTHER SOCALLED SCATTER TIME ON THE NETWORK MEANING ITS COMMERCIALS CAN GO AWHERE DOES THIS CREATE A PROBLEM ASKS WENDY WISEMAN SPRINT'S GROUP MANAGER IN CHARGE OF ADVERTISING NO WE WORRY ABOUT FINDING SHOWS THAT APPEAL TO SPECIFIC DEMOGRAPHICS SO WHO DOES BEAVIS AND BUTTHEAD APPEAL TO ANYWAY THERE ARE A FEW ADVERTISERS WHO ASKED NOT TO BE ON BEAVIS AND BUTTHEAD' SAYS THE SPOKEWOMAN WE RESPECT THAT IF AN ADVERTISER WAS PLACED ON IT BY MISTAKE WHEN THE SHOW MOVED TO 1030 PM WE REGRET THAT FOR NOW THE FUTURE OF THE BEAVIS AND BUTTHEAD SERIES APPEARS SECURE MTV ORDERED NEW EPISODES IT IS DEVELOPING A NEW 7 PM SERIES ABOUT THE HIGH SCHOOL MISFITS THAT PRESUMABLY WILL BE TONED DOWN ONE OTHER THING SEEMS CLEAR THE DISCLAIMER THAT APPEARED AT THE BEGINNING OF THE SHOW TWO MONTHS AGO WILL REMAIN IT READS BEAVIS AND BUTTHEAD ARE NOT ROLE MODELS THEY'RE NOT EVEN HUMAN THEY'RE CARTOONS SOME OF THE THINGS THEY DO WOULD CAUSE A REAL PERSON TO GET HURT EXPELLED ARRESTED POSSIBLY DEPORTED TO PUT IT ANOTHER WAY DON'T TRY THIS AT HOME WPP GROUP'S J WALTER THOMPSON HAS WON THE NATIONAL AD ACCOUNT OF THE UNITED DAIRY INDUSTRY ASSOCIATION AND THE NATIONAL DAIRY RESEARCH AND PROMOTION BOARD INDUSTRY EXECUTIVES SAID ESTIMATED CONSOLIDATED BILLINGS ARE 50 MILLION JWT'S CHICAGO OFFICE WAS CONTENDING FOR THE BIG ACCOUNT AGAINST SEVERAL OTHER LARGE NATIONAL AGENCIES INCLUDING D'ARCY MASIUS BENTON & BOWLES THE INCUMBENT AGENCY FOR CURRENT MILK ADVERTISING FROM THE UNITED DAIRY INDUSTRY ASSOCIATION AND INTERPUBLIC GROUP'S MCCANNERICKSON ONE OF THE NATIONAL DAIRY BOARD'S INCUMBENT AGENCIES OTHER CONTENDERS WERE OMNICOM GROUP'S DDB NEEDHAM AND LEO BURNETT THE TWO DAIRY GROUPS DECIDED TO CONSOLIDATE THEIR ADVERTISING EFFORTS AND CHOOSE ONE AGENCY AS A COSTSAVINGS MEASURE EXECUTIVES AT J WALTER THOMPSON COULDN'T BE REACHED A NATIONAL DAIRY BOARD SPOKESMAN CONFIRMED THE ASSIGNMENT REMINGTON PRODUCTS WHICH HAS BEEN SELLING ELECTRIC SHAVERS FOR YEARS USING THE DEPENDABLE CLOSE AS A BLADE OR YOUR MONEY BACK SLOGAN IS ABOUT TO LAUNCH A NEW CAMPAIGN TO UPDATE ITS IMAGE THE LATEST SLOGAN IF YOU CAN GROW IT WE CAN SHAVE IT CREATED BY GREY ADVERTISING THE NEW SPOTS OPEN WITH A HUNKY MAN WHO SAYS HEY REMINGTON SHAVE THIS MORE SHOTS OF BEEFCAKE MODELS FOLLOW AND REMINGTON'S CHAIRMAN AND CHIEF EXECUTIVE VICTOR KIAM APPEARS AT THE END TO DELIVER THE NEW TAGLINE WHICH IS MEANT TO UNDERSCORE THE SHAVER'S TRIPLEFOIL ACTION ON TOUGH BEARDS AND HARDTOSHAVE SPOTS REMINGTON IS SPENDING MORE THAN 10 MILLION ON ADS THIS YEAR A 50 INCREASE FROM LAST YEAR SAID PETER CUNEO REMINGTON'S PRESIDENT AND CHIEF OPERATING OFFICER REMINGTON AWARDED THE CREATIVE PORTION OF THE ACCOUNT TO GREY LAST SUMMER AFTER REVIEWING AND TESTING THE WORK OF A NUMBER OF AGENCIES VICTOR IS A POSITIVE LINK TO OUR PAST MR CUNEO SAID WE WENT WITH THE TEST SCORES IN PICKING THE NEW SLOGAN CAMPAIGN JC PENNEY KICKS OFF A NEW AD CAMPAIGN ON MONDAY WITH A BARRAGE OF COMMERCIALS PROMOTING THE VALUE OF THE DEPARTMENT STORE'S MERCHANDISE AGENCY TEMERLIN MCCLAIN A UNIT OF BOZELL JACOBS KENYON & ECKHARDT CREATED THE SPOTS WITH THE SLOGAN JC PENNEY DOING IT RIGHT PENNEY SAYS IT PLANS TO SPEND 60 MILLION IN ITS FISCAL FOURTH QUARTER ON THE MARKETING PUSH ACCOUNT ULTRAIR INC A STARTUP AIRLINE SET TO OPERATE BETWEEN NEW YORK AND THREE FLORIDA CITIES STARTING IN MIDNOVEMBER TAPPED ROMANN & TANNENHOLZ NEW YORK TO HANDLE ITS 3 MILLIONTO5 MILLION ACCOUNT PRINT ADS THAT DESIGNATE ULTRAIR THE LEAST ANNOYING AIRLINE START RUNNING TODAY 9310280059 931028 INTERNATIONAL SPANISH INDUSTRIAL PRODUCTION MADRID SPAIN'S INDUSTRIAL PRODUCTION INDEX DROPPED 55 IN AUGUST FROM A YEAR AGO THE NATIONAL STATISTICS INSTITUTE SAID PRECISIONTOOL MANUFACTURING HAD THE SHARPEST DROP TUMBLING 172 IN THE FIRST EIGHT MONTHS OF 1993 SPAIN'S INDUSTRIAL PRODUCTION FELL 71 COMPARED WITH A YEAR AGO 9310280058 931028 BUSINESS BRIEF CAPITAL HOUSING & MORTGAGE REIT PLANS TO LIQUIDATE SHAREHOLDERS TO GET PROCEEDS REALESTATE INVESTMENT TRUST CAPITAL HOUSING & MORTGAGE PARTNERS INC PROPOSED TO LIQUIDATE AND DISTRIBUTE PROCEEDS TO SHAREHOLDERS THE ROCKVILLE MD COMPANY SAID ITS NET ASSET VALUE ON A LIQUIDATION BASIS AT SEPT 30 WAS ABOUT 304 MILLION OR 611 A SHARE ASSETS AT THE END OF 1991 WERE 427 MILLION IN AMERICAN STOCK EXCHANGE TRADING CAPITAL HOUSING CLOSED AT 5625 A SHARE UP 125 CENTS A SHARE CAPITAL'S PORTFOLIO CONSISTS OF EIGHT FEDERALLY INSURED MORTGAGES INCLUDING TWO HELD FOR DISPOSITION TWO INVESTMENTS IN LIMITED PARTNERSHIPS CASH AND OTHER NET ASSETS BASICALLY DISPOSITIONS ARE OCCURRING AT A MORE RAPID PACE THAN ANTICIPATED MAKING IT LESS PROFITABLE FOR US TO CONTINUE SAID SUSAN RAILEY VICE PRESIDENT OF MORTGAGES 9310280057 931028 PEPPERAND SALT AND SNEEZE AND SNEEZE AND SNEEZE AGING TREE SURGEON OUT ON A LIMBO 9310280056 931028 KODAK NAMES MOTOROLA CHIEF TO TOP POSTS BY JOAN E RIGDON AND G CHRISTIAN HILL STAFF REPORTERS OF THE WALL STREET JOURNAL EASTMAN KODAK CO SCORED A COUP BY NAMING MOTOROLA INC CHAIRMAN GEORGE MC FISHER ITS NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER ENDING A TWOMONTH SEARCH FOR A LEADER TO TURN AROUND THE FALTERING PHOTOGRAPHY GIANT ANALYSTS WERE SHOCKED THAT THE 52YEAROLD MR FISHER WHO IS CREDITED WITH TRANSFORMING MOTOROLA FROM A MEAGERLY PROFITABLE SEMICONDUCTOR AND TWOWAY RADIO MAKER INTO THE WORLD'S DOMINANT MANUFACTURER OF PAGERS AND CELLULAR TELEPHONES WOULD LEAVE THE HIGHTECHNOLOGY SUCCESS STORY FOR KODAK THE ROCHESTER NY COMPANY WHICH ALSO HAS HEALTHCARE AND CHEMICAL OPERATIONS IS SO TROUBLED THAT ITS DIRECTORS SAID THEY WERE GREATLY DISAPPOINTED WITH ITS PERFORMANCE FOR A FULL TWO YEARS BEFORE THEY FIRED CHAIRMAN KAY R WHITMORE IN JULY MR WHITMORE 61 WAS ASKED TO RESIGN AS SOON AS A SUCCESSOR COULD BE FOUND BEFORE MR FISHER WAS NAMED LATE YESTERDAY KODAK REPORTED A THIRDQUARTER LOSS AFTER A RESTRUCTURING CHARGE AND ISSUED A SHARPLY LOWER FORECAST FOR THE FOURTH QUARTER MR FISHER TAKES WITH HIM A TECHNICAL VISION HE HAS SPENT MORE THAN 25 YEARS FIRST AT BELL TELEPHONE LABORATORIES AND THEN AT MOTOROLA PURSUING THE CONCEPT THAT WIRELESS COMMUNICATIONS WILL EXPLODE IN THE GLOBAL MARKETPLACE HE NOW MAY TRY TO GET KODAK TO INVEST IN EMERGING TECHNOLOGIES OR OTHER AREAS THAT WOULD ALLOW IT TO TAKE ADVANTAGE OF THE TECHNICAL TRENDS HE FORESEES MR FISHER IS EXPECTED TO BRING AN OUTSIDER'S PERSPECTIVE AND GLOBAL MANAGEMENT AND MARKETING SAVVY TO KODAK WHICH HAS USUALLY RECRUITED TOP EXECUTIVES FROM ITS OWN LABORATORIES THEN RELIED ON THEM TO DEVISE MARKETING STRATEGIES SOMETIMES WITH POOR RESULTS THE NEW CHAIRMAN IS EXPECTED TO HELP KODAK THROUGH ITS PRICE WARS IN THE FILM BUSINESS BUT HE MAY FIND IT TOUGH TO HELP KODAK HACK AWAY AT ITS BLOATED COST STRUCTURE AND PAYROLL WHILE MR FISHER IS KNOWN AS A BRILLIANT ASSESSOR OF TECHNOLOGY HE'S A SOFTSPOKEN XECUTIVE WITH A PROFESSORIAL STYLE AND HAS NEVER HAD TO FIRE LARGE NUMBERS OF PEOPLE IRONICALLY MR FISHER'S STYLE MAKES HIM A LOT LIKE MR WHITMORE WHO HAS BEEN CRITICIZED FOR NOT BEING TOUGH ENOUGH STILL PRUDENTIAL SECURITIES ANALYST B ALEX HENDERSON SAID FROM EVERYTHING I CAN SEE MR FISHER LOOKS LIKE THE RIGHT GUY FOR THE JOB WHY HE'D WANT TO TAKE IT I DON'T KNOW MOTOROLA OFFICIALS WERE STUNNED BY MR FISHER'S DEPARTURE THE EXECUTIVE HAS SAID ON MANY OCCASIONS THAT A WIRELESS REVOLUTION IS ABOUT TO SWEEP THE WORLD THAT MOTOROLA WAS AT THE CENTER OF THAT REVOLUTION AND HE WAS RIGHT WHERE HE WANTED TO BE IN MARCH MR FISHER REBUFFED FEELERS FROM THE BOARD OF INTERNATIONAL BUSINESS MACHINES CORP ABOUT SUCCEEDING JOHN AKERS AS IBM CHIEF EXECUTIVE IN AN ANNOUNCEMENT TO EMPLOYEES MR FISHER SAID I PLAN TO STAY AT MOTOROLA WHERE MY WORK IS CHALLENGING EXCITING AND REWARDING HE NOTIFIED THE BOARD OF HIS DECISION TO JOIN KODAK YESTERDAY MORNING A MOTOROLA OFFICIAL SAID MR FISHER TOLD THE BOARD THAT HE HAD RECEIVED AN EXTRAORDINARY OFFER FROM KODAK AND WAS TAKING IT THE OFFICIAL DECLINED TO SAY WHETHER MOTOROLA TRIED TO BETTER THE OFFER AT MOTOROLA HE EARNED 14 MILLION IN SALARY AND BONUS IN 1992 ACCORDING TO PROXY MATERIALS B KENNETH WEST CHAIRMAN OF HARRIS BANKCORP AND A MOTOROLA DIRECTOR SAID THE MOTOROLA BOARD WOULD MEET TOMORROW TO CONSIDER A SUCCESSOR HE DECLINED TO COMMENT FURTHER UNTIL A SUCCESSOR IS NAMED GARY TOOKER MOTOROLA'S PRESIDENT AND CHIEF OPERATING OFFICER WILL ACT AS CHIEF EXECUTIVE AND WILLIAM WEISZ A RETIRED VICE CHAIRMAN WILL SERVE AS ACTING CHAIRMAN MR FISHER WASN'T AVAILABLE FOR COMMENT IN A STATEMENT HE SAID KODAK HAS ONE OF THE BEST BRAND FRANCHISES IN THE WORLD THE HEAD OF KODAK'S SEARCH COMMITTEE COCACOLA CO CHAIRMAN ROBERTO C GOIZUETASAID IN A STATEMENT THAT MR FISHER GOT THE JOB BECAUSE OF HIS GLOBAL EXPERIENCE AS WELL AS A REPUTATION FOR KEEPING COSTS IN LINE WHILE ACHIEVING SALES AND EARNINGS GROWTH AND ENHANCED SHAREHOLDER VALUE MR GOIZUETA SAID EARLIER THAT IN CONDUCTING THE SEARCH WE'D START WITH GOD AND THEN FROM THAT POINT WE'D GO DOWN A LITTLE BIT AT A TIME PEOPLE CLOSE TO KODAK SAID MR FISHER'S CANDIDACY CAME LATE IN THE SEARCH AFTER KODAK HAD ALREADY NARROWED ITS FIELD TO FINALISTS INCLUDING VICTOR PELSON AN EXECUTIVE VICE PRESIDENT AT AMERICAN TELEPHONE & TELEGRAPH CO AND KODAK DIRECTOR RICHARD S BRADDOCK AS OF LATE LAST WEEK THE DEAL BETWEEN MR FISHER AND KODAK WAS STILL IN FLUX BECAUSE OF UNRESOLVED ISSUES INCLUDING COMPENSATION THESE PEOPLE SAID ORIGINALLY KODAK HAD PLANNED TO ANNOUNCE MR FISHER'S APPOINTMENT NEXT MONDAY BUT DECIDED TO MOVE FASTER BECAUSE IT FEARED THE NEWS MIGHT LEAK INDEED PEOPLE CLOSE TO THE DEAL SAY THAT AT THE TIME OF THE ANNOUNCEMENT MR FISHER AND KODAK HADN'T YET SIGNED THE FINAL CONTRACT INVESTORS HAVE BEEN PUSHING FOR A MAJOR SHAKEUP AT KODAK WHICH HAS RESTRUCTURED FIVE TIMES IN THE PAST DECADE YET FAILED TO CUT COSTS OR SUBSTANTIALLY EXPAND THE BUSINESS EARNINGS PEAKED IN 1988 WHEN KODAK'S ONLY COMPETITOR FUJI PHOTO FILM CO OF TOKYO HAD ONLY A SMALL FOOTHOLD IN THE US BUT NOW FUJI AND PRIVATELABEL FILM MAKERS HAVE BECOME FIERCE COMPETITORS AND KODAK CAN NO LONGER RELY ON DOUBLEDIGIT GROWTH IN ITS FILM BUSINESS TO OFFSET SLOW GROWTH OR LOSSES IN OTHER SECTORS SUCH AS COPIERS KODAK'S THIRDQUARTER LOSS WHICH WAS IN LINE WITH ANALYSTS' EXPECTATIONS AMOUNTED TO 68 MILLION OR 21 CENTS A SHARE AFTER A RESTRUCTURING CHARGE OF 387 MILLION OR 118 A SHARE FOR PREVIOUSLY ANNOUNCED LAYOFFS IN THE YEAREARLIER PERIOD NET WAS 189 MILLION OR 58 CENTS A SHARE AFTER A RESTRUCTURING CHARGE OF 141 MILLION OR 43 CENTS A SHARE SALES FELL TO 408 BILLION FROM 425 BILLION WITHOUT THE RESTRUCTURING CHARGE IN EITHER PERIOD KODAK'S LATEST NET WOULD HAVE SLIPPED TO 319 MILLION OR 97 CENTS A SHARE FROM 330 MILLION OR 101 A SHARE A YEAR EARLIER CITING WEAK OVERSEAS ECONOMIES AND NEGATIVE EFFECTS OF CURRENCY FLUCTUATIONS KODAK SAID EARNINGS BEFORE SPECIAL ITEMS FOR THE FULL YEAR COULD BE FLAT WITH LAST YEAR'S EARNINGS BEFORE SPECIAL ITEMS OF 326 A SHARE THAT IMPLIES EARNINGS BEFORE SPECIAL ITEMS OF ABOUT 66 CENTS A SHARE FOR THE FOURTH QUARTER SHARPLY BELOW ANALYSTS' EXPECTATIONS OF ABOUT 95 CENTS TO 1 A SHARE SAID WERTHEIM SCHRODER ANALYST MICHAEL ELLMANN KODAK ALSO WITHDREW ITS PREVIOUS FORECAST OF RECORD EARNINGS FOR 1994 SAYING IT WAS MADE BY MR WHITMORE WHO WOULDN'T BE AROUND TO DELIVER THOSE RESULTS KODAK'S BIGGEST ACCOMPLISHMENT IN THE RECENT QUARTER WAS CUTTING COSTS THE COMPANY SPENT 12 BILLION ON SALES ADVERTISING DISTRIBUTION AND ADMINISTRATIVE COSTS IN THE PERIOD DOWN 8 FROM A YEAR EARLIER SPENDING ON RESEARCH AND DEVELOPMENT FELL 10 FROM A YEAR EARLIER TO 313 MILLION WHILE INTEREST COSTS FELL 11 TO 154 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY KODAK SHARES ROSE 625 CENTS TO 5850 MOTOROLA SHARES ROSE 2375 TO CLOSE AT 105625 JULIE AMPARANO LOPEZ CONTRIBUTED TO THIS ARTICLE 9310280055 931028 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN REARRANGING FURNITURE SALES ARTISANS BUILD A HIGHEND MARKET NICHE THE DESIRE FOR ONEOFAKIND PIECES A WILLINGNESS TO PAY MORE AND THE URGE TO PASS ON AN HEIRLOOM CREATE DEMAND FOR HANDCRAFTED FURNITURE SO DOES BETTER MARKETING BY THE ARTISANS CHARLES SHACKLETON OF WOODSTOCK VT SAYS SALES DOUBLED IN THE PAST YEAR FOR HIS WORKS PRICED AROUND 1700 TO 4500 AND NEW YORK'S TOAD HALL FINDS SALES HAVE RISEN ABOUT 30 IN RECENT MONTHS AT THE SHOP WHICH EMPLOYS 20 CABINETMAKERS CHICAGO'S SAWBRIDGE STUDIOS REPRESENTS 10 CRAFTSMEN WHO BUILD FURNITURE TO ORDERAN IDEA THAT GREW FROM TALKS WITH UPSCALE RETAIL CUSTOMERS IN ITS FIRST YEAR THE STUDIO IS ON TARGET WITH EXPECTED SALES OF 750000 AT BARRY NEWSTAT FURNITURE IN CHICAGO A WOODWORKER'S SMALL END TABLE MAY COST 450 WHILE A LARGE CHEST OF DRAWERS IS ABOUT 4000 STILL THE HOME FURNISHINGS COUNCIL A MANUFACTURERS' GROUP ISN'T WORRIED ABOUT THE IMPACT ON STORE SALES PEOPLE LIKE TO SEE HANDMADE FURNITURE BUT THEY CAN'T AFFORD IT SAYS HAROLD GREENBAUM A COUNCIL OFFICIAL BOO AND BREW GO HAND IN HAND WITH SOME ADULT HALLOWEEN PROMOTIONS PITTSBURGH BREWING CO MAKER OF IRON CITY BEER CAPITALIZED ON THE HOLIDAY AS EARLY AS AUGUST WHEN IT BEGAN PUSHING THIS YEAR'S VAMPIRE THEME TO LOCAL BARS CLUBS AND RETAILERS THE BREWER ALSO WILL HOLD A FREE BEER BASH ON FRIDAY HALLOWEEN SALES RANK UP THERE WITH THE FOURTH OF JULY AND ST PATRICK'S DAY SAYS PAUL RILEY MANAGER OF COIT LIQUOR SAN FRANCISCO BUT BESIDES DISCOUNTING A BEER LIKE PETE'S WICKED BREW THERE ISN'T MUCH TO PROMOTE HE ADDS IN NEW YORK CITY BUY RITE DISCOUNT LIQUOR AND ASTOR WINES & SPIRITS EXPECT HIGHER SALES THIS WEEKEND BILL RUDOWSKI BUY RITE MANAGER SAYS THE ONLY WAY WE CAN REALLY PROMOTE IS THROUGH PRICE WHICH COULD DILUTE PROFIT COSTUME SHOPS DO BETTER COSTUME WORLD PITTSBURGH ADDED 15 WORKERS TO HELP CUSTOMERS CHOOSE OUTFITS INSPIRED BY ROMANTIC MOVIES MEANWHILE A FLORIDA STORE COSTUMES BANK EMPLOYEES A WELLSTOCKED' BOARD OF DIRECTORS MAY MEAN A MORE CONSCIENTIOUS BOARD PAYING DIRECTORS HEAVILY IN STOCK CAN HELP CORPORATE PERFORMANCE SAYS A HARVARD BUSINESS SCHOOL STUDY BY ROBERT STOBAUGH A PROFESSOR OF BUSINESS ADMINISTRATION HE EXAMINED NINE COMPANIES ON FORTUNE'S MOST ADMIRED LIST AND NINE COMPANIES THAT WERE CORPORATE GOVERNANCE TARGETS OF AT LEAST THREE SHAREHOLDER RIGHTS' GROUPS MEDIAN HOLDINGS OF THE ADMIRED BOARD MEMBERS WERE ABOUT 10 TIMES AS HIGH AS THOSE OF THE TARGETED COMPANY DIRECTORS THE THEORY IS THAT PEOPLE ARE MOTIVATED BY OWNING STOCK DR STOBAUGH SAYS IT'S A WAY OF KEEPING SCORE FOR THEM HE ADDS THE PROFESSOR SAYS PAY IS OVERLOOKED AS A MEANS OF AIDING CORPORATE GOVERNANCE AND HE SUGGESTS THAT 50 OF ALL BOARD COMPENSATION BE PAID IN RESTRICTED STOCK WHAT OF THE EFFECT ON DIRECTORS WHO NEED THE INCOME DIRECTORS WHO DEPEND ON THEIR CASH PAYMENTS TO LIVE DON'T WANT TO ROCK THE BOAT DR STOBAUGH SAYS IN THE PAST 10 YEARS CASH PAY TO THE BOARDS OF FORTUNE 500 FIRMS ROSE 96 32 FASTER THAN INFLATION HE ADDS THIS IS BETTER THE BETTER BUSINESS BUREAU SYSTEM IN ARLINGTON VA EXPANDS A TRIAL 24HOUR 900NUMBER INQUIRY SERVICE TO FOUR CITIES BESIDES NEW YORK CALLS COST 95 CENTS A MINUTE AROUND 380 PER INQUIRY CONSUMERS CAN STILL WRITE FOR FREE REPORTS EUROMATCHING GIFTS WILL BE EASIER TO MAKE VIA A PROGRAM FROM SUN MICROSYSTEMS FOUNDATION AND THE CHARITIES AID FOUNDATION AMERICA THE NEW GROUP FACILITATES A TAX DEDUCTION BY ACTING AS A SORT OF MIDDLEMAN IN THE US FOR MATCHING GIFTS BY OVERSEAS WORKERS TO CHARITIES ABROAD DUKE ABSOLVES ALUMNI FROM HAVING TO PAY FOR GRADE TRANSCRIPTS AS IT MOVED FROM A 3PERCOPY FEE TO A ONETIME CHARGE OF 30 TO ALL BUT MEDICAL STUDENTS THE SWITCH RAISED 200000 THIS YEAR FOR THE UNIVERSITY IN DURHAM NC A POSSIBLE SNAG LAW STUDENTS NOW REQUEST 50 60 OR 70 TRANSCRIPTS TO BE SENT WITH RESUMES SAYS THE REGISTRAR DIRECT MARKETERS JOCKEY FOR POSITION ON THE INTERACTIVE HIGHWAY VENTURES SUCH AS MASS TELEMARKETER CUC INTERNATIONAL'S NEW PARTNERSHIP WITH CABLE GIANTS TIME WARNER AND VIACOM TO CREATE AN INTERACTIVE HOMESHOPPING SERVICE DOMINATED TALK AT THIS WEEK'S DIRECT MARKETING ASSOCIATION MEETING IN TORONTO SAYS MICHAEL PETSKY OF INFORMATION AUTHORITIES A WEST HENRIETTA NY RESEARCHER PRIVACY FOR INSTANCE MAY BE AN ISSUE IF FIRMS TAP DATA ON CONSUMERS' BUYING AND HOBBIES MEANWHILE A RECESSIONINDUCED SHAKEOUT OF DIRECTMARKETING FIRMS THAT BEGAN IN 90 CONTINUES AS STRONGER FIRMS EXPAND CUSTOMER BASES AND PRODUCT LINES SAYS VOS GRUPPO & CAPELL NEW YORK INVESTMENT BANKERS WHO FOCUS ON THE INDUSTRY IT SAYS MERGERS AND BUYOUTS ROSE 41 IN THE FIRST EIGHT MONTHS OF 1993 AND STRATEGIC ALLIANCES JUMPED 69 BOTH ARE LIKELY TO CONTINUE SAYS CLAIRE GRUPPO MANAGING PARTNER SO WILL SIMPLE CATALOG BUYOUTS AS FIRMS EYE ANOTHER POSTALRATE HIKE AND OTHER HURDLES ALL THE INTERACTIVE HOOPLA WILL DRAMATICALLY CHANGE THE CATALOG FIELD BUT IT WILL NOT DISAPPEAR SAYS MS GRUPPO BRIEFS IN LIGHT OF THE RECENT UNREST IN RUSSIA NINTENDO OF AMERICA CANCELED A PROMOTION CALLED THE COMING OF THE SECOND REVOLUTION A THEME EVENT TO HYPE TETRIS 2 A SEQUEL TO THE POPULAR VIDEO GAME DEVELOPED IN RUSSIA CINEMA BEAUTE IN NEW CITY NY SELLS KOSHER LIPSTICK IN COLORS SUCH AS GALILEE GARNET AND DEAD SEA RED 9310280054 931028 BUSINESS BRIEF MONEY STORE INC THIRDPERIOD NET SOARED 33 AS LOAN ORIGINATIONS ROSE THE UNION NJ FINANCIAL SERVICES CONCERN SAID NET ROSE TO 58 MILLION OR 73 CENTS A SHARE FROM 44 MILLION OR 55 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 40 TO 55 MILLION MONEY STORE INCREASED ITS QUARTERLY DIVIDEND TO SIX CENTS A SHARE FROM FIVE CENTS PAYABLE DEC 1 TO STOCK OF RECORD NOV 12 IN THE FIRST NINE MONTHS NET ROSE 34 TO 144 MILLION OR 180 A SHARE REVENUE ROSE 32 TO 1454 MILLION MONEY STORE IS A LENDER OF HOMEEQUITY SMALL BUSINESS AND GOVERNMENT GUARANTEED STUDENT LOANS IN OVERTHECOUNTER TRADING MONEY STORE SHARES ROSE ALMOST 7 TO 25125 A SHARE UP 1625 A SHARE 9310280053 931028 BUSINESS BRIEF DOFASCO WILL LAY OFF 10 OF ITS EMPLOYEES AND CUT PRODUCTION HAMILTON ONTARIO DOFASCO INC CANADA'S LARGEST STEELMAKER SAID IT WILL LAY OFF NEARLY 10 OF ITS WORK FORCE AS THE COMPANY CUTS BACK PRODUCTION AT ITS HOME BASE DOFASCO REPORTED THIRDQUARTER PROFIT OF 62 MILLION CANADIAN DOLLARS US471 MILLION OR 70 CANADIAN CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF C147 MILLION OR 27 CANADIAN CENTS A SHARE THE COMPANY SAID HIGHER SELLING PRICES AND LOWER OPERATING COSTS MORE THAN OFFSET A DECLINE IN PRODUCTION VOLUME IN THE LATEST PERIOD REVENUE ROSE 8 TO C505 MILLION DOFASCO IS EXPECTED TO PRODUCE BETWEEN THREE MILLION AND 35 MILLION TONS OF STEEL IN 1994 DOWN FROM THIS YEAR'S ESTIMATED FOUR MILLION TONS A SPOKESMAN SAID PHASING OUT INGOT CAST STEELMAKING FACILITIES IN HAMILTON LOWERS OUTPUT AND REDUCES WORKFORCE NEEDS DOFASCO EXPECTS TO PRODUCE STEEL CHEAPER AT A THINSLAB CASTING MINIMILL TO BE BUILT IN KENTUCKY PRODUCTION AT THE FACILITY A JOINT VENTURE WITH COSTEEL INC OF TORONTO IS EXPECTED TO START AT ONE MILLION TONS A YEAR IN 1995 TO TWO MILLION TONS IN 1997 DOFASCO SAID IT PLANS TO LAY OFF ABOUT 750 OF ITS 7700 EMPLOYEES AS OF APRIL THE FORCED LAYOFFS THE FIRST IN DOFASCO'S HISTORY FOLLOW THE COMPANY'S REPEATED ATTEMPTS TO GET WORKERS TO ACCEPT EARLY RETIREMENT OR VOLUNTARY SEVERANCE PACKAGES ABOUT 800 WORKERS ACCEPTED THE PACKAGES WELL SHORT OF 1400 ELIGIBLE EMPLOYEES THE COMPANY ALREADY WROTE DOWN EXPECTED COSTS OF WORKFORCE REDUCTION AGAINST LAST YEAR'S EARNINGS 9310280052 931028 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG THE COMPUTER INDUSTRY'S QUEST TO AUTOMATE THE DETAILS OF YOUR DAILY LIFE ROLLS ON ANOTHER PERSONAL DIGITAL ASSISTANT HAS HIT THE MARKET IN THE WAKE OF APPLE COMPUTER'S MUCHDEBATED NEWTON THIS LATEST LITTLE PENCONTROLLED HANDHELD COMPUTER LOOKS LIKE A NEWTON AND PERFORMS THE SAME BASIC FUNCTIONS MAINTAINING AN ADDRESS LIST CALENDAR AND NOTE PAD AND TRANSMITTING ELECTRONIC MAIL BUT UNDER THE SKIN THE ZOOMER FROM TANDY AND JAPAN'S CASIO COMPUTER IS VERY DIFFERENT FROM APPLE'S MACHINE IT IS LESS AMBITIOUS AND LESS INGENIOUS BUT MORE PRACTICAL AND MORE OF A FINISHED PRODUCT WHOSE WORKINGS WILL SEEM FAMILIAR TO PERSONALCOMPUTER USERS APPLE SOUGHT TO DEVELOP A NEW KIND OF COMPUTER ALTOGETHER BUT TANDY AND CASIO APPEAR TO HAVE SET A MORE MODEST GOAL TO IMPROVE ON THE POPULAR ELECTRONIC ORGANIZERS SUCH AS THE SHARP WIZARD BY REPLACING THEIR CLUMSY LITTLE KEYBOARDS AND OVERLY COMPLEX SOFTWARE WITH CLEAN GRAPHICAL PROGRAMS SIMILAR TO THOSE ON A MODERN PC CONTROLLED BY A SMALL PLASTIC PEN ZOOMER DOES INCLUDE HANDWRITING RECOGNITION AND IT'S EVEN WORSE THAN NEWTON'S MUCHCRITICIZED VERSION IN MY VIEW IT ONLY WORKS ON PRINTING IT MAKES FREQUENT ERRORS ANYWAY AND IT CAN'T LEARN NEW WORDS AS YOU GO ALONG BUT UNLIKE NEWTON ZOOMER DOESN'T REQUIRE HANDWRITING RECOGNITION TO FUNCTION WELL EVERY PROGRAM IS OPERATED IN A CONVENTIONAL FASHION THROUGH MENUS AND GRAPHICAL ICONS HANDWRITTEN ENTRIES CAN BE STORED IN UNTRANSLATED FORM AND EVEN REDUCED IN SIZE SO THEY FIT ON A LINE IN THE CALENDAR AND ADDRESS BOOK AFTER A COUPLE OF WEEKS OF USING IT I'D SAY THE ZOOMER LARGELY SUCCEEDS IN ITS MODEST MISSION IT BOASTS A NUMBER OF INTERESTING AND USEFUL FUNCTIONS AND FEATURES INCLUDING BUILTIN SOFTWARE THAT CONNECTS YOU TO THE AMERICA ONLINE SERVICE FOR SENDING EMAIL AND RECEIVING NEWS AND STOCK QUOTES A STRIPPEDDOWN VERSION OF THE QUICKEN PERSONALFINANCE PROGRAM FOR TRACKING TRAVEL EXPENSES AND A RUDIMENTARY FOREIGNLANGUAGE TRANSLATION PROGRAM THE MACHINE USES A VERSION OF THE SOLID GEOWORKS OPERATING SYSTEM AND MOST OF ITS CLEVER PROGRAMS COME FROM A SMALL TALENTED INDEPENDENT SOFTWARE COMPANY CALLED PALM COMPUTING LOS ALTOS CALIF WITH SUCH A PRICE TAG ZOOMER IS LIKELY TO APPEAL MAINLY TO EARLY ADOPTERS WHO LOVE NEW TECHNOLOGY TO RABID SHARP WIZARD FANS LOOKING FOR SOMETHING BETTER AND TO FOLKS WHO ARE HAULING AROUND LARGER COMPUTERS MAINLY LAPTOPS TO DO THE VERY THINGS ZOOMER DOES WHAT THEY WILL GET WITH ZOOMER IS A CHOICE OF 15 OR SO BUILTIN PROGRAMS WHICH CAN BE LAUNCHED BY TAPPING THE PEN ON SYMBOLS PERMANENTLY INSCRIBED IN A ROW AT THE BOTTOM OF THE SCREEN THE ADDRESS BOOK LETS YOU CUSTOMIZE CATEGORIES VIEW CONTACTS IN LISTS OR ZOOM IN ON INDIVIDUAL ENTRIES YOU CAN STORE NOTES OR DRAWINGS WITH EACH NAME AND MAINTAIN A NUMBER OF ADDRESS BOOKS THE DATE BOOK HAS MOST OF THE STANDARD FUNCTIONS YOU CAN SET UP ONETIME OR RECURRING APPOINTMENTS HAVE THE MACHINE BEEP TO REMIND YOU OF DATES AND SO FORTH THERE'S ALSO A NOTEBOOK WITH BLANK PAGES THAT LETS YOU JOT DOWN SHORT TEXT PASSAGES OR DRAWINGS SECTIONS OF THE NOTEBOOK ARE AUTOMATICALLY ARRANGED IN A TABLE OF CONTENTS AND THE ENTRIES CAN BE REARRANGED OR COMBINED IN THESE THREE BASIC PROGRAMS YOU CAN STORE ENTRIES AS HANDWRITING BUT UNLESS YOU SAVE THEM AS RECOGNIZED TEXT THE ZOOMER CAN'T SORT THEM OR SEARCH FOR THEM BECAUSE THE HANDWRITING RECOGNITION ISN'T RELIABLE YOU WILL PROBABLY WIND UP PECKING OUT A LOT OF ENTRIES ON A VIRTUAL KEYBOARD THAT POPS UP ON THE SCREEN JUST AS NEWTON USERS DO OTHER PROGRAMS INCLUDE A DICTIONARY AND THESAURUS A FEW SIMPLE GAMES AND A VARIETY OF REFERENCE DATABASES SUCH AS NUTRITIONAL INFORMATION BIRTHSTONES AREA CODES AND SIMPLE FACTS ON COUNTRIES STATES AND CITIES THERE'S A CLEVER FORM CALCULATOR THAT CAN TELL YOU HOW LONG SOMETHING IS IN TERMS OF FOOTBALL FIELDS OR FIGURE OUT HOW TO SPLIT A RESTAURANT BILL EXTRA SOFTWARE CAN BE ADDED LATER UNLIKE NEWTON MY TEST UNIT SHOWED NO BUGS OR GLITCHES AND BATTERY LIFE WAS AWESOME TANDY CLAIMS MORE THAN 100 HOURS ON THREE COMMON AA ALKALINE CELLS BUT A FEW THINGS BOTHERED ME THE BUILTIN PEN IS TOO SHORT AND THIN TO BE MUCH GOOD THE SCREEN WASN'T EASY TO READ IN DIM OR INDIRECT LIGHT AND MOST OF ALL THE ZOOMER CAN BE VERY VERY SLOW TO CHANGE PROGRAMS OR BRING UP NEW SCREENS UNLESS YOU LEAVE NO MORE THAN THREE PROGRAMS PERMANENTLY LOADED IN MEMORY I DON'T BELIEVE PERSONAL DIGITAL ASSISTANTS WILL BE WIDELY USED BY BUSINESS PEOPLE UNTIL THEY COST LESS DO A BETTER JOB ON HANDWRITING AND FEATURE EASY BUILTIN COMMUNICATIONS LIKE NEWTON BEFORE IT ZOOMER IS ONLY AN EARLY CUT AT WHAT THESE DEVICES MIGHT EVOLVE INTO OTHER FIRMS ARE PLANNING TO TAKE THEIR OWN WHACKS AT THE CATEGORY IN COMING MONTHS AND I PLAN TO KEEP YOU POSTED ON HOW THEY DO 9310280051 931028 BUSINESS BRIEF RECOTON CORP THIRDQUARTER PROFIT SOARED CHIEF EXECUTIVE OFFICER SAYS RECOTON CORP CHIEF EXECUTIVE OFFICER ROBERT L BORCHARDT SAID THE COMPANY EXPECTS TO REPORT THIRDQUARTER EARNINGS DOUBLED HE CITED THE STRENGTH OF NEW WIRELESS STEREO COMPONENT PRODUCTS MR BORCHARDT SAID IN AN INTERVIEW THAT THE ORLANDO FLA COMPANY EXPECTS TO REPORT EARNINGS OF 35 CENTS TO 37 CENTS A SHARE NEXT WEEK COMPARED WITH 18 CENTS A SHARE A YEAR BEFORE THE EARNINGS FIGURES HAVE BEEN RESTATED TO REFLECT TWO 33 1/3 STOCK DIVIDENDS ISSUED LAST DECEMBER AND THIS MONTH MR BORCHARDT SAID THE SEPTEMBER QUARTER WAS THE BIGGEST QUARTER EVER FOR THE MAKER OF MORE THAN 1400 AUDIO VIDEO CAMCORDER AND COMPUTER ACCESSORY PRODUCTS SALES ROSE 83 TO 335 MILLION FROM 183 MILLION HE SAID HE SAID HE WAS COMFORTABLE WITH ONE ANALYST'S ESTIMATE OF 102 A SHARE FOR 1993 AND ADDED THAT IT WILL PROBABLY BE IN EXCESS OF THAT IN 1992 THE COMPANY EARNED 72 CENTS A SHARE 9310280050 931028 COMSTOCK TO ACQUIRE STANFORD DALLAS COMSTOCK RESOURCES INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE PRIVATELY HELD STANFORD OFFSHORE ENERGY INC IN A STOCK TRANSACTION COMSTOCK AN ENERGY CONCERN SAID IT WOULD ISSUE 1760000 OF ITS COMMON SHARES TO ACQUIRE STANFORD AND WOULD ALSO ASSUME 18 MILLION IN DEBT COMSTOCK SHARES CLOSED AT 350 UP 125 CENTS IN OVERTHECOUNTER TRADING YESTERDAY STANFORD OWNS AN ESTIMATED 715000 BARRELS OF OIL AND 157 BILLION CUBIC FEET OF NATURAL GAS IN PROPERTIES IN TEXAS MISSISSIPPI OKLAHOMA KANSAS AND OFFSHORE LOUISIANA THE TRANSACTION STILL SUBJECT TO LENDER APPROVAL AND OTHER CONDITIONS IS EXPECTED TO BE COMPLETED NEXT MONTH 9310280049 931028 INTERNATIONAL BRIEF MAN AG COMMERCIAL TRUCKING UNIT SAYS PROFIT FELL IN FISCAL YEAR MAN NUTZFAHRZEUGE AG THE MUNICHBASED COMMERCIAL TRUCK UNIT OF GERMANY'S MAN AG POSTED AN 87 PLUNGE IN EARNINGS FOR THE FISCAL YEAR ENDED JUNE 30 THE COMPANY ALSO SAID IT PLANS TO SLASH 3400 JOBS OR 12 OF THE WORK FORCE THIS FISCAL YEAR PROFIT FELL TO 32 MILLION MARKS 19 MILLION FROM 255 MILLION MARKS A YEAR EARLIER GROUP SALES TUMBLED 89 TO 724 BILLION MARKS FROM 79 BILLION MARKS THE UNIT'S CHAIRMAN RUDOLF RUPPRECHT SAID ABOUT 2350 POSITIONS WOULD BE CUT BY THE END OF DECEMBER THE COMPANY BLAMED FOREIGN EXCHANGE FLUCTUATIONS AND MORE INTENSE COMPETITION FOR THE SHARP DROP IN EARNINGS BUT MR RUPPRECHT SAID HE EXPECTS TO AT LEAST BREAK EVEN DURING THE CURRENT FISCAL YEAR DESPITE AN EXPECTED 75 DECLINE IN SALES 9310280048 931028 INTERNATIONAL BRIEF NTN CORP FISCAL 1STHALF PRETAX PROFIT DROPPED 57 ON WEAK SALES NTN CORP A LEADING JAPANESE MAKER OF BALL BEARINGS REPORTED WEDNESDAY THAT ITS GROUP PRETAX PROFIT FELL 57 DURING THE FISCAL FIRST HALF ENDED SEPT 30 FROM THE YEAREARLIER PERIOD DUE TO WEAK SALES AND THE APPRECIATION OF THE YEN PRETAX PROFIT FELL TO 173 BILLION YEN 16 MILLION FROM 397 BILLION YEN A YEAR EARLIER WHILE SALES FELL 11 TO 12242 BILLION YEN FROM 1371 BILLION YEN THE RESULTS FOR THE LATEST HALFYEAR PERIOD WERE WELL BELOW THE PREDICTIONS MADE BY THE COMPANY IN MAY PREVIOUS FORECASTS CALLED FOR 132 BILLION YEN IN SALES AND 35 BILLION YEN OF PRETAX PROFIT BUSINESS CONDITIONS WERE MORE SEVERE THAN EXPECTED BOTH IN JAPAN AND OVERSEAS NTN SAID DOMESTIC SALES FELL 10 FROM THE YEAREARLIER PERIOD TO 9654 BILLION YEN AS DEMAND SLUMPED AMID JAPAN'S ECONOMIC RECESSION 9310280047 931028 WISER OIL'S HOLDERRIGHTS PLAN DALLAS WISER OIL CO ADOPTED A STOCKHOLDERRIGHTS PLAN DESIGNED TO PROTECT THE INDEPENDENT ENERGY COMPANY FROM UNFAIR AND COERCIVE TAKEOVER TACTICS THE COMPANY SAID THE PLAN WHICH PREVENTS A POTENTIAL ACQUIRER FROM GAINING CONTROL WITHOUT FAIRLY COMPENSATING ALL STOCKHOLDERS CALLS FOR ISSUING A DIVIDEND OF ONE RIGHT FOR EACH SHARE OUTSTANDING OF WISER'S COMMON STOCK WHICH DOESN'T BECOME EXERCISABLE UNTIL CERTAIN CONDITIONS ARE MET A COMPANY SPOKESMAN SAID THE PLAN WAS ADOPTED PURELY AS A PRECAUTIONARY MEASURE 9310280046 931028 INTERNATIONAL BRIEF TELEFONOS DE MEXICO SA SHIFT IN FOCUS IS PLANNED TO INSTALLATION OF NEW LINES MEXICAN TELECOMMUNICATIONS GIANT TELEFONOS DE MEXICO SA SAID IT WILL SHIFT ITS FOCUS IN THE REMAINDER OF THIS YEAR TO INSTALLING NEW SERVICE LINES AWAY FROM A CONCENTRATION ON REPLACING OLD LINES TELMEX'S AGGRESSIVE LINEREPLACEMENT PROGRAM HAS PRESSURED EARNINGS IN THE FIRST TWO QUARTERS OF 1993 ON TUESDAY TELMEX REPORTED THAT NET INCOME ROSE ABOUT 17 IN THE FIRST NINE MONTHS TO 659 BILLION NEW PESOS 211 BILLION SPEAKING TO MORE THAN 200 INVESTORS YESTERDAY CHIEF FINANCIAL OFFICER ADOLFO CEREZO SAID THAT TELMEX'S CURRENT BACKLOG OF NEW LINE REQUESTS A PARTICULAR CONCERN OF INVESTORS NOW STANDS AT 450000 AND THAT THE WAIT FOR A NEW LINE NOW AVERAGES EIGHT TO NINE MONTHS COMPARED WITH A 12MONTH WAIT A YEAR AGO THE COMPANY HAS REPLACED 613000 OLD LINES IN THE FIRST NINE MONTHS OF THIS YEAR MORE THAN DOUBLE THE NUMBER OF LINES REPLACED IN ALL OF 1992 9310280045 931028 NATIONAL MEDICAL SUSPENDS DIVIDEND AND PLANS SIZABLE' 2NDPERIOD CHARGE BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC SUSPENDED DIVIDEND PAYMENTS ON COMMON STOCK AND SAID IT EXPECTS TO TAKE A SIZABLE CHARGE AGAINST EARNINGS IN ITS SECOND QUARTER ENDING NOV 30 THE HEALTHCARE COMPANY HAS BEEN UNDER PRESSURE BECAUSE OF WIDESPREAD CHARGES OF BILLING FRAUD AND MISTREATMENT OF PATIENTS AT ITS PSYCHIATRIC HOSPITALS DIVISION IT RECENTLY REACHED A 125 MILLION SETTLEMENT AGREEMENT WITH A GROUP OF SIX INSURANCE COMPANIES ALTHOUGH ANOTHER LAWSUIT REMAINS OUTSTANDING THE COMPANY ALSO IS UNDER FEDERAL CRIMINAL INVESTIGATION THE 24YEAROLD HOSPITAL CHAIN UNTIL NOW HAD A LONG RECORD OF STEADILY RISING DIVIDENDS UNTIL RECENTLY THE COMPANY MAINTAINED THAT THE PAYOUT WAS SAFE BECAUSE OF STRONG UNDERLYING CASH FLOW FROM OPERATIONS THE MOST RECENT QUARTERLY DIVIDEND 12 CENTS A SHARE WAS PAID SEPT 30 SEPARATELY IT APPEARED THAT JUSTICE DEPARTMENT TALKS TO SETTLE ALLEGATIONS OF POSSIBLE MISCONDUCT BY THE COMPANY ARE STILL ON TRACK WHILE NATIONAL MEDICAL CONTINUED TO DESCRIBE THE DISCUSSIONS AS PRELIMINARY THERE WERE SIGNS IN WASHINGTON THAT THEY HAVE ASSUMED GREATER URGENCY NATIONAL MEDICAL IS LISTED ON THE NEW YORK STOCK EXCHANGE AND YESTERDAY TRADING IN THE STOCK WAS HALTED FOR THE DIVIDENDSUSPENSION ANNOUNCEMENT IT DIDN'T RESUME PRIOR TO THE HALT THE SHARES WERE QUOTED AT 11125 OFF 25 CENTS THE ANTICIPATED SECONDQUARTER CHARGE COMES AS A RESULT OF VERY RECENT DISCUSSIONS WITH POTENTIAL PURCHASERS OF CERTAIN BUSINESSES THE COMPANY SAID WITHOUT IDENTIFYING THE BUSINESSES OR QUANTIFYING THE CHARGE ANALYSTS HAVE SPECULATED THAT THE COMPANY WANTS TO SELL WHAT IT CAN OF ITS TROUBLED PSYCHIATRIC OPERATIONS AND PARE OTHER UNDERPERFORMING HOSPITALS JEFFREY C BARBAKOW WHO TOOK OVER AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER LAST SUMMER HAS SAID HE WANTS TO REFOCUS THE COMPANY ON ITS CORE ACUTECARE HOSPITAL BUSINESS OVER THE LAST WEEK SEVERAL PARTIES HAVE APPROACHED US TO INQUIRE ABOUT SOME OF OUR BUSINESSES HE SAID YESTERDAY AS THEY HAVE BEEN DOING THAT PRICES HAVE BEEN SUGGESTED HE SAID WE DON'T HAVE A DEAL ON THE TABLE ACCOUNTING RULES REQUIRE THAT A COMPANY MARK DOWN AN ASSET TO MARKET VALUE WHEN INFORMATION SURFACES INDICATING THAT SUCH VALUE IS SIGNIFICANTLY BELOW THE AMOUNT ON THE BOOKS NATIONAL MEDICAL SAID THAT THIS REQUIREMENT WAS THE MAIN REASON FOR THE PLANNED WRITEOFF THE WRITEOFF IN TURN TRIGGERED THE DIVIDEND SUSPENSION NATIONAL MEDICAL'S BANKS RECENTLY DEMANDED TIGHTER RESTRICTIONS ON DIVIDEND PAYMENTS AS PART OF REVISED LOAN AGREEMENTS THE CHANGES WERE DISCLOSED EARLIER THIS MONTH IN A FIRSTQUARTER REGULATORY FILING WHEN THE COMPANY ADDED 250 MILLION TO A RESERVE FOR UNUSUAL LITIGATION UNDER THE AGREEMENT NATIONAL MEDICAL IS PERMITTED A DIVIDEND PAYOUT OF AS MUCH AS 43 OF ITS SECONDQUARTER EARNINGS BASED ON CURRENT OPERATING PERFORMANCE THE COMPANY SAID IT HAD EXPECTED TO MAKE THE PAYOUT BUT ANY ASSET SALE AT BELOWBOOK VALUE WOULD HAVE WIPED OUT EARNINGS AND RETROACTIVELY PUT THE COMPANY IN VIOLATION OF ITS BANK COVENANTS MEANWHILE THE JUSTICE DEPARTMENT IS COMPILING INFORMATION ON CLAIMS PAYMENTS MADE TO NATIONAL MEDICAL PSYCHIATRIC HOSPITALS BY AT LEAST ONE GOVERNMENT PROGRAM SUCH INFORMATION PRESUMABLY WOULD BE NEEDED FOR THE GOVERNMENT TO QUANTIFY ANY DAMAGES IT BELIEVES IT HAS SUSTAINED AS A RESULT OF ALLEGED COMPANY MISCONDUCT THE AGENCY HAS ASKED THE BLUE CROSS & BLUE SHIELD ASSOCIATION IN WASHINGTON WHICH ADMINISTERS HEALTHCARE BENEFITS FOR ABOUT 41 OF FEDERAL EMPLOYEES TO PROVIDE IT WITH THE TOTAL DOLLAR AMOUNT PAID TO NATIONAL MEDICAL FROM 1986 THROUGH THE PRESENT BECAUSE OF THE URGENT NATURE OF THIS REQUEST I WILL NEED YOUR RESPONSE BY OCT 29 ACCORDING TO A LETTER DATED OCT 26 AND RUSHED TO BLUE CROSS & BLUE SHIELD LOCAL PLAN ADMINISTRATORS AROUND THE COUNTRY A SPOKESWOMAN FOR THE ASSOCIATION DECLINED TO COMMENT THE REQUEST IS HIGHLY UNUSUAL ONE LOCAL INVESTIGATOR SAID CHRISTI SULZBACH A NATIONAL MEDICAL SENIOR VICE PRESIDENT SAID DISCUSSIONS WITH THE GOVERNMENT ARE CONTINUING ON A REGULAR BASIS THE INFORMATION REQUEST SUGGESTS THAT WE ARE ON THE RIGHT TRACK 9310280044 931028 GALAXY COMPLETES PLACEMENT ORLANDO FLA GALAXY FOODS CO SAID IT COMPLETED A 550000 PRIVATE PLACEMENT WITH LIFESCIENCES TECHNOLOGY PARTNERS LP PURCHASING MORE THAN 85 OF THE PLACEMENT THE COMPANY ALSO SAID KENNEDY CAPITAL EXERCISED OPTIONS ON 291666 SHARES KENNEDY CAPITAL IS A ST LOUIS INVESTMENT MANAGEMENT FIRM SEPARATELY GALAXY SAID IT RECEIVED A 300000 LOAN FROM ANGELO MORINI ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER THE COMPANY SAID MR MORINI ALSO FORGAVE 515000 IN PREVIOUS LOANS 9310280043 931028 BUSINESS BRIEF OAKWOOD HOMES CORP FISCAL 4THPERIOD NET ROSE AT LEAST 52 COMPANY SAYS OAKWOOD HOMES CORP EXPECTS TO REPORT THAT EARNINGS IN ITS FISCAL FOURTH QUARTER ROSE AT LEAST 52 FROM A YEAR EARLIER SAID NICHOLAS J ST GEORGE PRESIDENT AND CHIEF EXECUTIVE OFFICER THE GREENSBORO NC MANUFACTURER AND RETAILER OF MANUFACTURED HOMES SAID NET INCOME IN THE QUARTER ENDED SEPT 30 IS ESTIMATED AT BETWEEN 7 MILLION AND 75 MILLION OR ABOUT 35 CENTS TO 36 CENTS A SHARE THAT COMPARES WITH NET OF 46 MILLION OR 33 CENTS A SHARE A YEAR EARLIER SALES IN THE MOST RECENT QUARTER MR ST GEORGE SAID IN AN INTERVIEW ARE ESTIMATED AT BETWEEN 80 MILLION AND 85 MILLION AN INCREASE OF AT LEAST 36 FROM 589 MILLION A YEAR EARLIER OAKWOOD HOMES HAS BENEFITED FROM STRONG GROWTH IN THE INDUSTRY WHERE SALES HAVE JUMPED MORE THAN 20 FROM THE PREVIOUS YEAR MR ST GEORGE SAID 9310280042 931028 BUSINESS BRIEF TREMONT CORP UNIT IS IN VIOLATION OF PACT WITH BANKS RESOLUTION NEAR TREMONT CORP SAID ITS PRINCIPAL OPERATING SUBSIDIARY WAS IN VIOLATION OF ITS BANK CREDIT AGREEMENT BECAUSE OF CONTINUED LOSSES IN THE THIRD QUARTER BUT THE DALLAS TITANIUM METALS COMPANY BELIEVES IT IS CLOSE TO A RESOLUTION WITH LENDERS TREMONT REPORTED ITS THIRDQUARTER LOSS NARROWED TO 51 MILLION OR 69 CENTS A SHARE FROM 64 MILLION OR 87 CENTS A SHARE A YEAR AGO THE RESULTS WERE BOLSTERED BY A ONETIME GAIN FROM THE SALE OF ITS BENTONITE MINING BUSINESS TREMONT 48OWNED BY FINANCIER HAROLD SIMMONS' VALHI INC ALSO TOOK A 47 MILLION PRETAX RESTRUCTURING CHARGE IN THE QUARTER RELATED TO PLANNED COST REDUCTION MEASURES TREMONT FACES CONTINUED TROUBLE IN ITS PRIMARY METALS BUSINESS BECAUSE OF A WORLDWIDE GLUT AND A DROP IN AIRCRAFT ORDERS 9310280041 931028 WHAT'S NEWS WORLDWIDE CLINTON DELIVERED HIS REVAMPED HEALTHCARE PLAN TO CONGRESS THE PRESIDENT AFTER MONTHS OF DELIBERATIONS PRESENTED HIS PROPOSAL TO RESTRUCTURE THE HEALTH SYSTEM AND GUARANTEE MEDICAL COVERAGE TO ALL AMERICANS BY 1998 HE URGED CONGRESS TO PASS A COMPREHENSIVE HEALTH BILL BY THE END OF NEXT YEAR THE SUBMISSION OF THE BILL MARKS THE FULFILLMENT OF A CAMPAIGN PROMISE AND THE BEGINNING OF WHAT WILL BE A HARDFOUGHT LEGISLATIVE BATTLE NUMEROUS PROVISIONS IN THE PLAN ALREADY HAVE ANGERED SEGMENTS OF THE MEDICAL INDUSTRY AND HAVE PROMPTED THE INTRODUCTION OF ABOUT A HALFDOZEN ALTERNATIVE HEALTH BILLS A WALL STREET JOURNAL/NBC NEWS POLL SHOWS THAT WHILE THERE IS GENERAL SUPPORT FOR THE PLAN SIGNIFICANT OPPOSITION HAS TAKEN ROOT IN THE MONTH SINCE CLINTON PREVIEWED IT IN A TELEVISED SPEECH CALIFORNIA FIRES DESTROYED OVER 250 HOMES AND FORCED THOUSANDS TO FLEE BRUSH FIRES COVERING NEARLY 60000 ACRES WERE RAGING OUT OF CONTROL IN SOUTHERN CALIFORNIA AUTHORITIES SAID THIRTEEN LARGE FIRES FANNED BY HOT DESERT WINDS WERE BURNING FROM VENTURA COUNTY TO THE MEXICAN BORDER ONE FIRE DESTROYED AN ESTIMATED 125 HOMES IN THE LAGUNA BEACH AREA AND OVER 75 HOUSES WERE DESTROYED IN THE LOS ANGELES SUBURB OF ALTADENA OVERWHELMED FIREFIGHTERS RAN OUT OF WATER AND CALLED FOR REINFORCEMENTS MORE THAN 100 PEOPLE INCLUDING 14 FIREFIGHTERS WERE INJURED A 3500ACRE BLAZE IN NORTHERN SAN DIEGO COUNTY WAS THREATENING THE SAN DIEGO ZOO'S WILD ANIMAL PARK AND SOME 2000 NEARBY HOMES HAITIAN OPPOSITION FIGURES MIGHT BE ABLE TO PARTICIPATE IN A NEW GOVERNMENT THERE SECRETARY OF STATE CHRISTOPHER SAID PROVIDED THEY WERE ACCEPTABLE TO PRODEMOCRACY LEADERS MEANWHILE WHITE HOUSE ADVISERS MET TO DISCUSS HAITI AS THE US CONCEDED IT DOESN'T EXPECT SATURDAY'S DEADLINE FOR RESTORING DEMOCRACY TO BE MET A COAST GUARD VESSEL FORCIBLY RETURNED 15 HAITIAN BOAT PEOPLE TO PORTAUPRINCE REFUGEE ADVOCATES SAID THE 13 MEN AND TWO WOMEN WERE IMMEDIATELY ARRESTED THE REFUGEES WERE THE FIRST HAITIANS INTERCEPTED SINCE THE UN LAST WEEK REIMPOSED AN OIL AND ARMS EMBARGO ON HAITI UN PEACEKEEPERS ACCUSED BOSNIAN CROAT FORCES OF MASSACRING MUSLIMS IN A VILLAGE NORTH OF SARAJEVO WHERE UN TROOPS FOUND AT LEAST 15 BODIES AND ALL 52 HOUSES BURNED DOWN THE PEACEKEEPERS ENTERED STUPNI DO ON TUESDAY AFTER BEING FORCIBLY KEPT OUT OF THE VILLAGE BY CROATS SEEKING TO HIDE THE MASSACRE A UN STATEMENT SAID MUBARAK INSISTED THE THREAT FROM ISLAMIC EXTREMISTS IN EGYPT IS DECLINING NOWADAYS IT'S GOING DOWN SHARPLY DOWN THE EGYPTIAN PRESIDENT SAID IN AN INTERVIEW IN WASHINGTON HE SPOKE TUESDAY JUST BEFORE NEWS OF AN ATTACK BY A GUNMAN IN WHICH TWO AMERICANS AND A FRENCHMAN WERE KILLED AT A CAIRO HOTEL ALMOST HALF A MILLION WOMEN WILL DIE OF BREAST CANCER IN THIS DECADE IN THE US WHILE RESEARCH PROJECTS THAT OFFER HOPE OF BETTER TREATMENT ARE DELAYED FOR LACK OF MONEY A PRESIDENTIAL COMMISSION SAID THE PANEL SAID FEDERAL AGENCIES NEED TO SPEND AT LEAST 500 MILLION A YEAR TO MAKE SUBSTANTIAL PROGRESS AGAINST THE DISEASE CHILDREN AREN'T ADEQUATELY PROTECTED FROM POTENTIAL LONGTERM HEALTH DAMAGE CAUSED BY OZONE AND OTHER POLLUTANTS ACCORDING TO ENVIRONMENTAL AND MEDICAL GROUPS THEY CRITICIZED FEDERAL AIRPOLLUTION LAWS AND CALLED FOR TIGHTER STANDARDS REGARDING OZONE PARTICULATES AND NITROGEN DIOXIDE OVER 200 TOWNS HAVE EXPRESSED INTEREST IN RELOCATING BECAUSE OF MIDWEST FLOODS THE HEAD OF THE FEDERAL EMERGENCY MANAGEMENT AGENCY TOLD A HOUSE HEARING ADDING THAT IT WOULD COST 400 MILLION TO ACQUIRE 10000 STRUCTURES IN THE AFFECTED AREAS HE SAID INCENTIVES SHOULD BE CREATED TO DISCOURAGE DEVELOPMENT IN FLOOD PLAINS TRIBAL MASSACRES HAVE SWEPT BURUNDI FOLLOWING AN UNSUCCESSFUL MILITARY COUP SIX DAYS AGO WITNESSES SAID ARMY OFFICIALS ESTIMATED THAT SEVERAL THOUSAND PEOPLE HAVE BEEN KILLED SOMALI GUNMEN FIRED AT AMERICAN INFANTRYMEN NOT FAR FROM A US BASE IN NORTHERN MOGADISHU THE TROOPS RETURNED FIRE AND TWO TRUCKS IN THEIR CONVOY WERE HIT BUT THERE WEREN'T ANY REPORTS OF CASUALTIES 9310280040 931028 BUSINESS BRIEF GAYLORD ENTERTAINMENT CO AGREEMENT AIMS TO DRAW TRAVELERS TO NASHVILLE TENN GAYLORD ENTERTAINMENT CO AND AMR CORP'S AMERICAN AIRLINES SAID THEY ENTERED INTO A JOINT MARKETING AGREEMENT TO DRAW MORE BUSINESS AND LEISURE TRAVELERS TO NASHVILLE TENN INCLUDING FROM LONDON THE FIVEYEAR AGREEMENT INCLUDES DESIGNATION OF AMERICAN AS GAYLORIRLINE AND WILL INCLUDE COOPERATIVE ADVERTISING CAMPAIGNS RADIO PROMOTIONS SWEEPSTAKES AND OTHER PROGRAMS FINANCIAL TERMS WEREN'T DISCLOSED GAYLORD BASED IN NASHVILLE IS AN ENTERTAINMENT AND COMMUNICATIONS CONCERN ITS OPERATIONS INCLUDE THE GRAND OLE OPRY THE OPRYLAND HOTEL AND OPRYLAND PARK ALL IN NASHVILLE AMR BASED IN FORT WORTH TEXAS HAS OPERATED A HUB IN NASHVILLE SINCE 1986 9310280039 931028 BUSINESS BRIEF UNC INC AIRCRAFTMANAGEMENT FIRM IS ACQUIRED FROM FORSTMANN UNC INC SAID IT ACQUIRED LEAR SIEGLER MANAGEMENT SERVICES INC OKLAHOMA CITY A PROVIDER OF CONTRACT SERVICES FOR AIRCRAFT MAINTENANCE AND FLEET MANAGEMENT UNC ANNAPOLIS MD MAKES AND OVERHAULS JETENGINE AND AIRCRAFT COMPONENTS REFURBISHES HELICOPTERS AND PROVIDES PILOT TRAINING AMONG OTHER BUSINESSES UNC SAID IT EXPECTS TO ACHIEVE SIZABLE COST SAVINGS BY CONSOLIDATING ITS AVIATION SERVICES WITH THOSE OF LEAR SIEGLER MANAGEMENT SERVICES 9310280038 931028 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN REPRESENTATIVES OF THE SOUTH KOREAN GOVERNMENT EMPLOYERS AND WORKERS PROMISED CONCERTED EFFORTS TO REVIVE THE ECONOMY FROM A GROWTH RATE THAT IS SAGGING AT A 12YEAR LOW A CONSULTATION SYSTEM WOULD REPLACE THE PRESENT GOVERNMENT POLICIES ON WAGES EMPLOYMENT AND INTERNATIONAL COMPETITIVENESS TRADE UNIONS CALLED FOR GOVERNMENT PARTNERSHIPS WITH WORKERS TO FOSTER COOPERATIVE EFFORTS AND EMPLOYERS URGED FURTHER CUTS IN INTEREST RATES AND IN RED TAPE TO ENCOURAGE CAPITAL INVESTMENT MEANWHILE THE TRADE INDUSTRY AND ENERGY MINISTRY MAPPED OUT ITS FINAL PLAN TO TAKE EFFECT NEXT YEAR FOR INDUSTRY SPECIALIZATION BY CONGLOMERATES TO STRENGTHEN THEIR GLOBAL COMPETITIVENESS THE 10 LARGEST CONGLOMERATES CAN CHOOSE THREE CORE BUSINESS LINES AND THE OTHER 20 CAN PICK TWO FROM AMONG 12 LINES OFFERED BY THE MINISTRY TO GET BENEFITS SUCH AS LOANS AND SUPPORT FOR RESEARCH SEVENTEEN EUROPEAN COMMUNITY STEEL COMPANIES AGREED TO CUT 105 BILLION METRIC TONS OF PRODUCTION CAPACITY IN RETURN FOR A 114 BILLION LOAN TO HELP THEM RESTRUCTURE THE EC COMMISSION SAID THE LOAN IS A MAIN PART OF A PLAN TO END EUROPE'S STEEL INDUSTRY CRISIS BY SHEDDING THE CAPACITY TO PRODUCE 30 MILLION METRIC TONS OF CRUDE STEEL RECESSION HAS DEPRESSED DEMAND AND PRICES AND CHEAPER EASTERN EUROPEAN STEEL HAS HURT WESTERN STEELMAKERS WITH THEIR HUGE PLANTS AND WORK FORCES MAGISTRATES IN MILAN ISSUED AN ARREST WARRANT FOR RINALDO PETRIGNANI OF WASHINGTON DC A FORMER CONSULTANT TO THE SALOMON BROTHERS INVESTMENT BANK'S LONDON OFFICE FOR ALLEGEDLY ACCEPTING A 62000 KICKBACK TO GUARANTEE THE SALOMON INC UNIT'S PARTICIPATION IN A PROPOSED ITALIAN INSURANCE JOINT VENTURE IN 1992 MR PETRIGNANI ITALIAN AMBASSADOR TO THE US FROM 1981 TO 1991 IS WANTED ON CHARGES OF CORRUPTION MILAN JUDICIAL SOURCES SAID HE DENIED WRONGDOING SALOMON SAID IT HAD REJECTED MR PETRIGNANI'S PROPOSAL OF THE JOINTVENTURE DEAL TO WIDEN COMPETITION IN THE SWISS ECONOMY THE GOVERNMENT PROPOSED A SWEEPING REVISION OF THE LAW ON CARTELS THE MEASURE A RESPONSE TO ANTITRUST CRITICISM BY GLOBAL TRADE GROUPS WOULD SEVERELY RESTRICT CARTELS' OPERATIONS PROHIBIT MOST REGIONAL PRICE AND SUPPLY CARTELS AND CURB MERGERS OF GIANT FIRMS IT WOULD CREATE A FEDERAL COMPETITION OFFICE TO EXAMINE PRACTICES FOR RULINGS BY A COUNCIL RECAST FROM THE CARTEL COMMISSION WHEN THE GERMAN TREUHANDANSTALT'S MANDATE TO PRIVATIZE HOLDINGS OF THE FORMER EAST GERMAN STATE EXPIRES AT THE END OF 1994 THE AGENCY WILL BE KEPT ALIVE FOR A FOLLOWUP ROLE THE TREUHAND'S EXTENDED OPERATING COSTS ARE EXPECTED TO TOTAL 268 BILLION AND 75 OF THE 4000 EMPLOYEES WILL BE RETAINED ITS DUTIES WILL INCLUDE MANAGEMENT PARTICIPATION IN COMPANIES UNTIL THEY ARE SOLD OFF MANAGEMENT OF 140000 PRIVATIZATION CONTRACTS MANAGEMENT AND OVERSIGHT OF AGENCYOWNED FARMLAND FORESTS AND OTHER REAL ESTATE AND LONGTERM SELLOFFS SUCH AS IN MINING AND NUCLEAR POWER AND OF FORMER COMMUNIST PARTY PROPERTY VIETNAM'S RULING COMMUNIST PARTY IS GRAPPLING TO RID ITS RANKS OF PERVASIVE CORRUPTION THAT THREATENS ECONOMIC DEVELOPMENT THE OFFICIAL VIETNAM NEWS SAID PARTY LEADERS IN A PURGE OF CORRUPT ASSOCIATES FROM GOVERNMENT HAVE EXPOSED MORE THAN 2000 CASES INVOLVING PUBLIC MONEY AND PROPERTY AND RECOVERED 6 MILLION IN ILLGOTTEN ASSETS IN THE PAST 12 MONTHS FOR EXAMPLE 40 OF THE MONEY FOR A RURAL POVERTY PROGRAM DISAPPEARED BUT THE NEWSPAPER SAID ABUSES OF POWER HAVE BECOME BETTER ORGANIZED AND HARDER TO DETECT THE PARTY'S REPUTATION IS BEING TARNISHED BECAUSE MOST CORRUPTION CASES HAVE BEEN EXPOSED BY NONCOMMUNISTS WHILE MANY IN THE PARTY BELIEVED IT WAS IMMUNE TO THE PROBLEM THE REPORT SAID FRANCE AND GERMANY STRUGGLING TO DISPLAY SOLIDARITY AHEAD OF A SPECIAL EUROPEAN COMMUNITY SUMMIT CALLED JOINTLY FOR FOREIGNPOLICY INITIATIVES BY THE EC AND PROPOSED THAT ITS MINISTERS MEET FREQUENTLY TO STEER A COMMON APPROACH THE FRENCH AND GERMAN LEADERS SAID THEIR PROPOSALS WERE INTENDED TO GIVE IMMEDIATE LIFE TO THE MAASTRICHT TREATY THAT TAKES EFFECT MONDAY AIMED AT UNIFYING EC ECONOMIC MONETARY AND POLITICAL AFFAIRS THE SPECIAL EC SUMMIT TOMORROW IS DESIGNED TO RELAUNCH THE POSTMAASTRICHT EC INCLUDING SELECTION OF A SITE FOR A NEW EUROPEAN MONETARY INSTITUTE CONSIDERED THE FORERUNNER OF AN EC CENTRAL BANK JAPAN SAYING CRIMES INVOLVING PISTOLS AND CONFISCATIONS OF HANDGUNS ARE ON THE RISE APPEALED FOR GLOBAL EFFORTS TO HALT GUNRUNNING AS IT OPENED AN INTERNATIONAL CONFERENCE ON COMBATING THE SMUGGLERS A SCULPTURE INCORPORATING THE LUXURIOUS PERSONAL AMBULANCE OF FORMER SOVIET LEADER LEONID BREZHNEV WAS SOLD TO IMPERIAL BANK OF RUSSIA FOR 250000 AT AN AUCTION TO BENEFIT MOSCOW'S CRUMBLING 18THCENTURY MANEZH GALLERY THE ARTWORK TITLED SLEEPING BEAUTY THAT SUGGESTS RUSSIA'S POTENTIAL DEMOCRATIC POWER WAS CREATED BY ALEXANDER YAKUT COMBINING THE 1979 ZIL AMBULANCE WITH A FEMALE FIGURE RECLINING ON A MARBLE TOMB 9310280037 931028 BUSINESS BRIEF TYCO LABORATORIES INC EQUIPMENT MAKER POSTS NET FOR FISCAL FIRST QUARTER TYCO LABORATORIES INC EXETER NH REPORTED NET INCOME OF 274 MILLION OR 60 CENTS A SHARE ON SALES OF 790 MILLION FOR ITS FIRST QUARTER ENDED SEPT 30 IN THE YEAREARLIER QUARTER THE COMPANY HAD A LOSS OF 466 MILLION OR 102 A SHARE AFTER A ONETIME CHARGE RELATED TO HEALTHBENEFITS ACCOUNTING EQUAL TO 155 A SHARE ON SALES OF 8087 MILLION THE MAKER OF FIREPROTECTION EQUIPMENT ATTRIBUTED FLAT SALES TO ADVERSE CURRENCYEXCHANGE RATES ON FOREIGN SALES BUT THE COMPANY SAID IT WAS ENCOURAGED BY IMPROVEMENT IN PROFIT LEVELS IN NORTH AMERICAN MARKETS TYCO SAID PROFIT WAS HIGHER AT ITS FLOW CONTROL ELECTRICAL AND ELECTRONIC COMPONENTS AND PACKAGING MATERIALS SEGMENTS AND FELL IN THE FIRE PROTECTION SEGMENT 9310280036 931028 BUSINESS BRIEF ALLIEDSIGNAL INC ACCORD WITH AKZO IS SET ON EUROPE CARPET FIBER LINE ALLIEDSIGNAL INC MORRIS TOWNSHIP NJ SAID IT COMPLETED AN AGREEMENT TO HOLD A MAJORITY INTEREST IN A EUROPEAN NYLON CARPET FIBER BUSINESS WITH AKZO NV THE BUSINESS WITH ANNUAL SALES OF ABOUT 100 MILLION WILL EMPLOY ABOUT 300 PEOPLE MOST OF THEM IN EMMEN THE NETHERLANDS THE SALES FORCES OF THE TWO COMPANIES WILL BE INTEGRATED BY YEAR END ALLIEDSIGNAL SAID THE AGREEMENT WITH AKZO WILL GIVE IT A MANUFACTURING BASE FOR NYLON CARPET FIBER IN EUROPE AS WELL AS A MORE ATTRACTIVE COMBINED MARKET AKZO BASED IN ARNHEM THE NETHERLANDS HAS HAD A GOOD POSITION IN THE COMMERCIAL MARKET WHILE ALLIEDSIGNAL HAS HAD A GOOD POSITION IN THE RESIDENTIAL MARKET AKZO IS A CHEMICAL COMPANY WITH BUSINESSES IN FIBERS PHARMACEUTICALS COATINGS AND SPECIALTY CHEMICALS ALLIEDSIGNAL WITH BUSINESSES IN AEROSPACE AND AUTOMOTIVE PRODUCTS CHEMICALS FIBERS PLASTICS AND ADVANCED MATERIALS SAID IT WILL DISCUSS INCLUDING THE EUROPEAN CARPET FIBER BUSINESS IN A JOINT VENTURE WITH BASF CORP 9310280035 931028 BUSINESS BRIEF FLETCHER CHALLENGE CANADA LTD MOST LOGGING LUMBER LINES TO BE PUT IN NEW COMPANY FLETCHER CHALLENGE CANADA LTD SAID IT PLANS TO PLACE MOST OF ITS LOGGING AND LUMBER OPERATIONS IN A NEW COMPANY AND SELL A 49 STAKE IN THE UNIT TO THE PUBLIC TERMS OF THE INITIAL PUBLIC OFFERING BY THE UNIT TIMBERWEST FOREST LTD HAVEN'T BEEN SET WOOD PUCTS RECENTLY HAVE ACCOUNTED FOR ABOUT 20 OF FLETCHER'S SALES WHICH TOTALED 378 MILLION CANADIAN DOLLARS US287 MILLION IN THE QUARTER ENDED SEPT 30 THE REORGANIZATION WILL LEAVE FLETCHER FOCUSED ON ITS PULP AND PAPER BUSINESS FLETCHER CHALLENGE CANADA VANCOUVER BRITISH COLUMBIA IS A PUBLICLY TRADED UNIT OF FLETCHER CHALLENGE LTD NEW ZEALAND FLETCHER CHALLENGE CANADA SAID IT WILL USE PROCEEDS FROM THE SHARE SALE TO PAY DOWN DEBT POSITIONING US TO TAKE ADVANTAGE OF FUTURE GROWTH OPPORTUNITIES SEPARATELY FLETCHER CHALLENGE CANADA SAID IT HAD A LOSS OF C129 MILLION OR 11 CANADIAN CENTS A SHARE FOR THE FIRST QUARTER ENDED SEPT 30 THAT COMPARES WITH A LOSS OF C188 MILLION OR 24 CANADIAN CENTS A SHARE A YEAR EARLIER SALES ROSE TO C378 MILLION FROM C207 MILLION 9310280034 931028 BUSINESS BRIEF USF&G CORP NET IN 3RD PERIOD QUADRUPLED ON 25 DECLINE IN REVENUE USF&G CORP IN THE MIDST OF A RESTRUCTURING REPORTED A SHARP RISE IN THIRDQUARTER NET INCOME THE BALTIMORE INSURANCE COMPANY SAID EARNINGS ROSE TO 20 MILLION OR 10 CENTS A SHARE FROM YEAREARLIER EARNINGS OF 5 MILLION HOWEVER THE COMPANY POSTED A YEAREARLIER PERSHARE LOSS OF NINE CENTS A FIGURE THAT INCLUDES PAYMENTS FOR PREFERREDSTOCK DIVIDENDS YEAREARLIER RESULTS INCLUDE LOSSES FOR HURRICANE ANDREW REVENUE FELL 25 FOR THE THIRD QUARTER TO 755 MILLION FROM 101 BILLION SINCE LATE 1990 USF&G HAS BEEN SHEDDING UNPROFITABLE BUSINESSES WHICH THE COMPANY SAID EXPLAINS THE DECLINING REVENUE USF&G HAS TOLD ANALYSTS IT IS FINISHED PRUNING AND IS LOOKING TO EXPAND IN PROFITABLE AREAS 9310280033 931028 ELECTROMEDICS SELLS SENIOR NOTES ENGLEWOOD COLO ELECTROMEDICS INC SAID IT SOLD 5 MILLION OF SENIOR SECURED NOTES TO CANADA LIFE ASSURANCE CO THE NOTES HAVE A SEVENYEAR TERM AND A 656 INTEREST RATE THE FIRST NATIONAL BANK OF CHICAGO ACTED AS PLACEMENT AGENT THE COMPANY SAID THE PLACEMENT WILL BE USED TO PROVIDE PERMANENT FINANCING FOR THEIR NEW FACILITY IN PARKER COLO AND TO RETIRE 51 MILLION OF 95 MORTGAGE NOTES ON ITS ENGLEWOOD PLANT UPON MOVING TO ITS NEW FACILITY THE COMPANY ALSO SAID THE NEW HEADQUARTERS PROVIDES MANY EFFICIENCIES AND WILL SAVE THEM 300000 ANNUALLY 9310280032 931028 INTERNATIONAL BRIEF COMMERZBANK AG BANK REACTS SHARPLY TO NEWS OF A LOWER CREDIT RATING COMMERZBANK AG HAD ITS CREDIT RATING DOWNGRADED BY MOODY'S INVESTORS SERVICE INC PROMPTING THE GERMAN BANK TO RELEASE SOME PERCENTAGES TO SHOW THAT BUSINESS IS GOOD MOODY'S CUT THE BANK'S CREDIT RATING FOR LONGTERM DEPOSITS FROM DOUBLEA1 TO DOUBLEA2 CITING WHAT IT DESCRIBED AS COMMERZBANK'S DETERIORATING ASSET QUALITY MOODY'S ALSO SAID IT EXPECTS THE WEAKNESS OF THE GERMAN AND EUROPEAN ECONOMIES WILL CONTINUE TO PRESSURE ASSET QUALITY OVER THE MEDIUM TERM THE BANK'S PRIME1 RATING FOR SHORTTERM DEPOSITS AND COMMERCIAL PAPER WAS LEFT UNCHANGED IN A SHARP REACTION COMMERZBANK OFFICIALS SAID THEY CONSIDERED THE DOWNGRADING WASN'T JUSTIFIED BY THE BANK'S PERFORMANCE TO ILLUSTRATE THE POINT IT SAID THAT ITS GROUP OPERATING PROFIT ROSE 50 IN THE FIRST NINE MONTHS OF 1993 REFLECTING STRONG EARNINGS ON SECURITIES AND FOREIGN EXCHANGE TRADING ON ITS OWN ACCOUNT DURING THE THIRD QUARTER WHILE THE BANK DIDN'T RELEASE SPECIFIC NUMBERS IT SAID THE 50 RISE COMPARED WITH AN INCREASE OF JUST 16 FOR THE FIRST HALF OF 1993 9310280031 931028 USLIFE EXTENDS BUYBACK PLAN NEW YORK USLIFE CORP EXTENDED ITS STOCKREPURCHASE PROGRAM THROUGH NOVEMBER 1994 WITH ITS BOARD AUTHORIZING THE BUYBACK OF AS MANY AS ONE MILLION COMMON SHARES OR CONVERTIBLEPREFERREDSHARE EQUIVALENTS USLIFE SAID REPURCHASES WILL BE MADE IN THE OPEN MARKET OR THROUGH NEGOTIATED TRANSACTIONS THE COMPANY SAID IT HAS 22630673 COMMON SHARES OUTSTANDING 9310280030 931028 INTERNATIONAL BRIEF VOLKSWAGEN AG SEAT SA WORKERS WALK OUT TO PROTEST CLOSING OF PLANT THOUSANDS OF WORKERS AT SEAT SA'S CAR FACTORIES WALKED OFF THE JOB TO PROTEST OWNER VOLKSWAGEN AG'S PLAN TO CLOSE A PLANT IN BARCELONA SPAIN AND CUT 9000 JOBS EVERYTHING HAS BEEN COMPLETELY SHUT DOWN SAID INOCENCIO JARAMILLO FINANCIAL OFFICER OF THE WORKERS COMMISSIONS UNION AT SEAT'S ZONA FRANCA PLANT IN BARCELONA THE HALFDAY WALKOUT ALSO CLOSED FACTORIES AT NEARBY MARTORELL AND IN PAMPLONA MR JARAMILLO SAID THE UNIONS HAD CALLED FOR A FOURHOUR STRIKE BY EACH OF THE DAY'S SHIFTS AT THE PLANTS WHICH EMPLOY A TOTAL OF 23500 WORKERS GERMAN CAR MAKER VOLKSWAGEN BOUGHT SEAT FROM THE SPANISH GOVERNMENT IN 1986 ONLY TO SEE ITS SALES DROP 33 IN THE PAST YEAR AMID EUROPE'S RECESSION SEAT'S ACTING CHAIRMAN PETER WALZER ANNOUNCED FRIDAY THAT VW WOULD STOP MAKING CARS AT THE ZONA FRANCA PLANT AND CUT 9000 OF THE FACTORY'S 13600 POSITIONS 9310280029 931028 LOJACK COMES TO NEW YORK DEDHAM MASS LOJACK CORP SAID IT HAS SIGNED AN AGREEMENT WITH NEW YORK CITY TO MAKE ITS STOLEN VEHICLE RECOVERY SYSTEM AVAILABLE IN THE CITY'S FIVE BOROUGHS TERMS WEREN'T DISCLOSED THE COMPANY SAID THE SYSTEM WILL BE OPERATED BY THE CITY'S POLICE DEPARTMENT AS PART OF A NEW YORK STATE LOJACK VEHICLE RECOVERY SYSTEM THE SYSTEM SHOULD BE OPERATING SOMETIME THIS SPRING THE COMPANY SAID 9310280028 931028 INTERNATIONAL BRIEF NEWS CORP REJECTION URGED OF PLAN FOR SUPER' VOTING STOCK AUSTRALIAN INVESTMENT INSTITUTIONS ARE LOBBYING THE AUSTRALIAN STOCK EXCHANGE TO REJECT A PLAN BY RUPERT MURDOCH'S NEWS CORP TO ISSUE A NEW CLASS OF SHARES NEWS CORP HAS ASKED THE EXCHANGE TO REVIEW ITS RULES TO ALLOW THE LISTING OF SHARES WITH INCREASED VOTING RIGHTS THE LISTING RULES REQUIRE THAT ORDINARY OR COMMON SHARES CARRY ONE VOTE A SHARE MR MURDOCH WHO OWNS ABOUT 30 OF NEWS CORP ANNOUNCED OCT 12 THAT HE PLANS TO GIVE SHAREHOLDERS A NEW CLASS OF SHARES WITH SUPER VOTING RIGHTS IAN MATHESON EXECUTIVE OFFICER FOR THE AUSTRALIAN INVESTMENT MANAGEMENT GROUP SAID THE SUPER VOTING SHARES WILL ALLOW MR MURDOCH TO INCREASE HIS FAMILY'S VOTING POWER WITHOUT HAVING TO PAY ANY MONEY FOR THE NEW SHARES DETAILS OF THE PROPOSED SHARES HAVEN'T BEEN DISCLOSED THE EXCHANGE HAS ASKED THE INVESTMENT COMMUNITY FOR ITS VIEWS 9310280027 931028 ANGELICA COMPLETES ACQUISITION TERMS WEREN'T DISCLOSED THE COMPANY SAID THE NEW STORES HAVE TOTAL ANNUAL SALES OF ABOUT 15 MILLION 9310280026 931028 WHAT'S NEWS BUSINESS AND FINANCE KODAK NAMED MOTOROLA CHAIRMAN GEORGE FISHER ITS NEW CHAIRMAN AND CHIEF EXECUTIVE SHOCKING ANALYSTS AND ENDING A TWOMONTH SEARCH FOR A LEADER TO TURN AROUND THE FALTERING PHOTOGRAPHY GIANT BEFORE THE ANNOUNCEMENT KODAK POSTED A THIRDQUARTER LOSS AND ISSUED A LOWER FORECAST FOR THE FOURTH PERIOD FISHER'S RESIGNATION IS A BLOW TO MOTOROLA FORD REPORTED A BETTERTHANEXPECTED THIRDQUARTER PROFIT AS THE AUTO MAKER REVERSED A YEAREARLIER LOSS WITH STRONG EARNINGS FROM ITS FINANCIAL OPERATIONS ONETIME TAX CREDITS AND THE BEST THIRDQUARTER US AUTOMOTIVE RESULTS IN FIVE YEARS A PROPOSED SETTLEMENT FOR BCCI INVOLVING BILLIONS OF DOLLARS IN CLAIMS WAS REJECTED BY A LUXEMBOURG COURT MCDONNELL DOUGLAS MUST IMPROVE ITS PERFORMANCE IN ITS C17 PROGRAM OR THE PENTAGON WILL CANCEL THE PROGRAM AFTER PURCHASING ONLY 40 OF 120 MILITARY CARGO AIRCRAFT IT PLANNED TO BUY PENTAGON AND CONGRESSIONAL AIDES SAID NATIONAL MEDICAL ENTERPRISES SUSPENDED DIVIDEND PAYMENTS ON COMMON STOCK AND EXPECTS TO TAKE A SIZABLE CHARGE IN ITS SECOND QUARTER DURABLEGOODS ORDERS ROSE 07 IN SEPTEMBER WITH GAINS POSTED ACROSS MOST MAJOR INDUSTRIES THE INCREASE WAS THE THIRD IN FOUR MONTHS S&P STIFFENED ITS DEBTRATINGS FORMULA FOR THE ELECTRIC UTILITY INDUSTRY SAYING THAT THE INDUSTRY IS A SECTOR THAT'S IN LONGTERM DECLINE THE COMPTROLLER OF THE CURRENCY ISSUED GUIDELINES OBLIGATING BANKS TO MAKE SURE THAT DERIVATIVE PRODUCTS ARE APPROPRIATE FOR THEIR CUSTOMERS THE CHAIRMAN OF J BAKER AGREED TO PAY MORE THAN 700000 TO SETTLE SEC CHARGES OF INSIDER TRADING RELATED TO HIS WORK ON A CREDITORS' COMMITTEE WILDENSTEIN ACQUIRED 49 OF POWERHOUSE CONTEMPORARY ART DEALER PACE GALLERY IN AN ALLIANCE THAT CREATES THE WORLD'S LARGEST ART DEALERSHIP INTEL ANNOUNCED VOLUME SHIPMENTS OF A SOCALLED FLASH MEMORY CHIP THAT CAN STORE 16 MEGABITS OF DATA THE MOVE GIVES INTEL A LEAD IN THE CHIP MARKET AGAINST ITS RIVALS NEXTEL COMMUNICATIONS PLANS TO BUY ANOTHER RADIODISPATCH COMPANY SPENDING NEARLY 400 MILLION IN STOCK JAPAN'S BIG BANKS ARE EXPECTED TO MAKE THEIR LARGESTEVER PROVISIONS AGAINST BAD LOANS WHEN THEY ANNOUNCE FISCAL FIRSTHALF RESULTS NEXT MONTH DUPONT POSTED A 680 MILLION LOSS FOR THE THIRD QUARTER ON 13 BILLION IN CHARGES DUE TO ASSET WRITEDOWNS PLANT CLOSURES AND OTHER MOVES FOREIGN COMPANIES IN CHINA MAY FACE A HIGHER TAX BURDEN UNDER NEW RULES EXPECTED TO TAKE EFFECT NEXT YEAR ALSO FOREIGN EMPLOYEES ARE LIKELY TO BE HIT WITH HIGHER INCOME TAXES SANTA FE ENERGY RESOURCES PLANS TO ELIMINATE ITS QUARTERLY DIVIDEND ON COMMON AND TAKE A NONCASH 20 MILLION WRITEDOWN IN THE FOURTH QUARTER THE MOVES ARE A PART OF A RESTRUCTURING PLAN APPROVED BY ITS BOARD BONDS LEHMAN BROTHERS TREASURY INDEX 562841 OFF 2374 COMMODITIES OIL 1765 A BARREL UP 11 CENTS DOW JONES FUTURES INDEX 13019 UP 036 SPOT INDEX 11979 UP 045 DOLLAR 10872 YEN UP 042 16795 MARKS UP 00007 9310280025 931028 SALE BY CATERPILLAR INC PEORIA ILL CATERPILLAR INC SAID IT SOLD 475 MILLION IN CONSTRUCTION EQUIPMENT TO MEXICO FOR USE IN A HIGHWAY PROJECT THE COMPANY SAID THE ORDER FROM TRIBASA A MEXICAN CONSTRUCTION COMPANY IS FOR 172 MACHINES AND THAT ALL BUT 34 WILL BE MADE IN THE COMPANY'S ILLINOIS FACTORIES IN 1992 CATERPILLAR EXPORTED ABOUT 200 MILLION OF EQUIPMENT TO MEXICO 9310280024 931028 MARKETING & MEDIA BORDEN POSTS NET OF JUST 200000 FOR THIRD QUARTER BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BORDEN INC STRUGGLING TO RESTRUCTURE ITS OPERATIONS EKED OUT JUST 200000 IN THIRDQUARTER NET INCOME REFLECTING WEAKER RESULTS IN ALL OF ITS MAJOR BUSINESS UNITS THE FOOD PACKAGING AND INDUSTRIALPRODUCTS COMPANY'S MEAGER QUARTERLY PROFIT TRANSLATED TO NO PERSHARE EARNINGS THOSE RESULTS COMPARE WITH A NET LOSS OF 3768 MILLION OR 268 A SHARE IN THE YEAREARLIER PERIOD LAST YEAR'S RESULTS INCLUDED AN AFTERTAX RESTRUCTURING CHARGE OF 450 MILLION OR 320 A SHARE BORDEN'S OPERATING PROFIT FOR THE THIRDQUARTER WAS 562 MILLION COMPARED WITH 1658 MILLION IN 1992 SALES DROPPED 9 TO 169 BILLION SIGNIFICANT DECLINES IN VOLUME AND INCOME EXPERIENCED DURING THE SECONDQUARTER CONTINUED IN MOST OF BORDEN'S BUSINESSES SAID CHAIRMAN AND CHIEF EXECUTIVE OFFICER ANTHONY S D'AMATO WHO ADDED THAT HE EXPECTS FOURTHQUARTER OPERATING RESULTS TO BE ESSENTIALLY THE SAME AS THOSE OF THE THIRDQUARTER FOURTHQUARTER RESULTS HE NOTED COULD BE REDUCED BY PROVISIONS FOR THE DISPOSAL OF BUSINESSES MR D'AMATO SAID BORDEN EXPECTS TO ANNOUNCE A FULL PLAN OF REORGANIZATION INCLUDING DIVESTMENTS BY YEAR END THE NEWS SPURRED CREDITRATING AGENCY MOODY'S INVESTORS SERVICE INC TO PUT 16 BILLION OF BORDEN'S LONGTERM DEBT UNDER REVIEW FOR A POSSIBLE DOWNGRADE THE AGENCY CITED THE PERSISTENT WEAKNESS OF OPERATING EARNINGS AND UNCERTAINTY ABOUT THE RESULTS OF THE COMPANY'S RESTRUCTURING EFFORTS THE COMPANY'S PRIME2 RATING FOR COMMERCIAL PAPER ISN'T UNDER REVIEW ANALYSTS SAID THE THIRDQUARTER RESULTS WERE UNEXPECTEDLY BAD THE QUARTER WAS VERY WEAK AND WELL BELOW EXPECTATIONS SAID NOMI GHEZ OF GOLDMAN SACHS & CO THIS IS AN ORGANIZATION IN DISARRAY BORDEN ANNOUNCED ITS RESULTS BEFORE THE CLOSE OF TRADING IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BORDEN SHARES CLOSED AT 1650 DOWN 50 CENTS SEPARATELY BORDEN'S BOARD OF DIRECTORS ENACTED THREE CORPORATEGOVERNANCE CHANGES THE BOARD INSTITUTED A NOMINATING COMMITTEE OF INDEPENDENT DIRECTORS TO PROPOSE CANDIDATES FOR ELECTION TO THE BOARD AND TERMINATED THE COMPANY'S SOCALLED FAIR VALUE PLAN WHICH DISCOURAGED A TAKEOVER OF THE COMPANY AT LESS THAN WHAT THE BOARD DETERMINED TO BE THE FAIR VALUE IT ALSO EXTENDED CONFIDENTIAL SHAREHOLDER VOTING TO PROXY CONTESTS IN THE THIRDQUARTER PRACTICALLY ALL OF BORDEN'S PRINCIPAL UNITS POSTED SUBSTANTIAL DECLINES IN OPERATING INCOME ALTHOUGH THE COMPANY DIDN'T DISCLOSE FIGURES FOR OPERATING INCOME LOWER SALES VOLUMES FOR PASTA CHEESE AND MOST NICHE GROCERY PRODUCTS ALONG WITH INVENTORY REDUCTIONS BY RETAILERS HELPED DRIVE SALES IN THE GROCERY BUSINESS DOWN 13 TO 4534 MILLION THE DAIRY UNIT POSTED AN OPERATING LOSS AND A SALES DROP OF 13 TO 3281 MILLION THE SNACKS AND INTERNATIONAL FOODS UNIT POSTED A 10 SALES DROP TO 422 MILLION WHILE SALES IN THE PACKAGING AND INDUSTRIALPRODUCTS DIVISION FELL 2 TO 4828 MILLION 9310280023 931028 INDUSTRY FOCUS CANADIAN BANKS SET THEIR SIGHTS ON INSURANCE BUSINESS BIG CHANGES ARE PREDICTED FOR SECTOR IN THE WAKE OF DEREGULATION BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CANADA'S BIG BANKS ARE ON THE PROWL AGAIN AND THIS TIME IT'S THE COUNTRY'S LIFE INSURERS THAT ARE RUNNING SCARED BEFORE THE DUST SETTLES A NUMBER OF MUTUAL LIFE COMPANIES WHICH DOMINATE THE CANADIAN INDUSTRY ARE LIKELY TO CONVERT TO PUBLICLY HELD STOCK CONCERNS TO RAISE CAPITAL AT LEAST HALF OF THE COUNTRY'S 150 LIFE INSURERS ARE EXPECTED TO DISAPPEAR OR BE SWALLOWED UP AS COMPANIES SEEK ECONOMIES TO COUNTER SHRINKING PROFIT MARGINS EVERYONE KNOWS THAT IN FOUR OR FIVE YEARS THE BANKS ARE GOING TO BE SELLING INSURANCE THE INSURANCE INDUSTRY IS SCARED TO DEATH SAYS SABRA BRINKMAN A DIRECTOR OF INSURANCE RATINGS AT STANDARD & POOR'S CORP SIX BIG CANADIAN BANKS ALREADY DO MUCH MORE THAN LEND MONEY SINCE RECENT DEREGULATION THE BANKS NOW CONTROL MUCH OF THE COUNTRY'S SECURITIES TRUST AND MUTUAL FUNDS INDUSTRIES THE ONE HOLD OUT HAS BEEN INSURANCE BUT LAST YEAR THE BANKS GOT THE RIGHT TO UNDERWRITE INSURANCE AND IT'S EXPECTED THAT THE RIGHT TO SELL IN THEIR BRANCHES WILL FOLLOW THAT WOULD ALSO HASTEN A CONSOLIDATION OF CANADA'S PROPERTY AND CASUALTY INSURANCE INDUSTRY NEVER UNDERESTIMATE THE BANKS THEY HAVE A GOOD DEAL OF RESILIENCE THAT'S THE NEW WAY OF SAYING DEEP POCKETS SAYS PAUL CANTOR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CONFEDERATION LIFE INSURANCE CO ONE OF CANADA'S LARGEST LIFE INSURERS CANADIAN IMPERIAL BANK OF COMMERCE PROBABLY WILL FIRE THE FIRST SALVO IN THE BANKING INDUSTRY'S BATTLE FOR INSURANCE BUSINESS THE BANK THE COUNTRY'S SECOND LARGEST EXPECTS TO BE LICENSED SOON TO UNDERWRITE INSURANCE TORONTODOMINION BANK SAYS IT ISN'T FAR BEHIND THE TWO BANKS SO FAR HAVE REVEALED LITTLE ABOUT THEIR MARKETING STRATEGIES MEANWHILE OTHER BANKS ARE KEEPING THEIR POWDER DRY WAITING TO SEE HOW THE BATTLE SHAKES OUT IT'S PROBABLY TOO EARLY TO PREDICT HOW BIG THE BANKS CAN GET IN THE INSURANCE BUSINESS WHICH GENERATES SOME 20 BILLION CANADIAN DOLLARS US152 BILLION OF LIFE PREMIUM INCOME ANNUALLY BUT BANK OFFICIALS POINT TO INSURANCE DEREGULATION IN EUROPE OVER THE LAST DECADE BANKS THERE CONTROL BETWEEN 20 AND 40 OF THE INSURANCE MARKET IN SOME EUROPEAN COUNTRIES BY CONTRAST US BANKS WHICH CAN SELL BUT CAN'T UNDERWRITE INSURANCE ACCOUNT FOR ONLY ABOUT 1 OF THE MARKET WE INTEND TO BE A MAJOR PLAYER IN THE INSURANCE BUSINESS WE INTEND TO MOVE RIGHT ACROSS THE COUNTRY ON THE LIFE AND CASUALTY SIDE SAYS AL FLOOD CANADIAN IMPERIAL'S CHAIRMAN AND CHIEF EXECUTIVE CANADIAN BANKS AREN'T ENTIRELY NEW TO INSURANCE BUT THEY HAVE BEEN ALLOWED TO SELL ONLY CERTAIN PRODUCTS MAINLY POLICIES TIED TO MORTGAGES AND OTHER LOANS THAT WERE UNDERWRITTEN BY OUTSIDE INSURANCE COMPANIES RECENT DEREGULATION ALLOWS BANKS TO UNDERWRITE THEIR OWN INSURANCE BUT BANKERS ALSO WANT THE POWER TO SELECTIVELY MARKET INSURANCE PRODUCTS TO THEIR VAST CUSTOMER BASE AND MOST OBSERVERS EXPECT THEY'LL GET IT THAT WOULD PROVIDE A BIG ADVANTAGE OVER THE TRADITIONAL INSURANCE SALES AGENT WHO PURSUES CUSTOMERS ON A MORE RANDOM BASIS WHEN YOU HAVE A KID IF THE BANKS ARE ON THEIR TOES THEY CAN HAVE AN AGENT AT YOUR DOORSTEP SAYS MARK DANIELS PRESIDENT OF THE CANADIAN LIFE AND HEALTH INSURANCE ASSOCIATION AN INDUSTRY BODY CANADIAN LIFE INSURANCE EXECUTIVES ADMIT THEY'RE IN FOR TOUGH TIMES AND NOT ONLY BECAUSE OF THREATENED BANK COMPETITION THE INDUSTRY'S REPUTATION FOR FINANCIAL SOLIDITY HAS BEEN TARNISHED BY WRITEDOWNS OF REALESTATE LOANS AND BY THE RECENT FAILURE OF TWO MIDSIZE LIFE INSURANCE COMPANIES ALSO AN AGING POPULATION MEANS INSURERS ARE SELLING FEWER LIFE POLICIES AND MORE ANNUITIES WHICH GENERATE LESS PROFIT AS A RESULT LIFE INSURANCE FIRMS HAVE BEGUN CHANGING THE WAY THEY DO BUSINESS SOME ARE SHEDDING LESS PROFITABLE PRODUCT LINES OTHERS ARE CUTTING COMMISSIONS TO THEIR SALES AGENTS AND A FEW SEE THEIR FUTURE GROWTH COMING FROM OVERSEAS CONFEDERATION LIFE'S MR CANTOR WANTS TO MAKE HIS COMPANY RESISTANT TO BANK COMPETITION BY RAISING MORE CAPITAL PROBABLY BY CONVERTING IT TO A PUBLICLY HELD STOCK COMPANY AND BY STRENGTHENING ITS GROUPLIFE BUSINESS THE COMPANY RECENTLY JETTISONED ITS INDIVIDUAL LIFE SALES FORCE BY MOVING IT INTO A MARKETING ALLIANCE WITH OTHER INSURERS THAT CUT 10 FROM CONFEDERATION'S FIXED EXPENSES IN CANADA MR CANTOR PLANS TO FOCUS ON THE SOPHISTICATED CORPORATE CLIENT BECAUSE THAT'S WHERE HE EXPECTS THE BANKS WON'T BE MR CANTOR WHO UNTIL LAST YEAR WAS AN EXECUTIVE AT CANADIAN IMPERIAL EXPECTS THE BANKS INITIALLY WILL SELL SOCALLED COMMODITY INSURANCE PRODUCTS MOSTLY TERMLIFE AND OFFTHESHELF WHOLELIFE PRODUCTS FOR INDIVIDUALS AND SMALL BUSINESSES THESE BANKS HAVE THOUSANDS OF BRANCHES DEALING WITH SMALL TO MIDSIZE BUSINESSES THROUGHOUT THE COUNTRY THAT'S AN INCREDIBLE DISTRIBUTION SYSTEM I THINK THEY'LL CAPITALIZE ON IT MR CANTOR SAYS INDIVIDUAL LIFE INSURANCE IS THE MAINSTAY OF LONDON LIFE INSURANCE CO AND COMPETITION FOR THIS BUSINESS PROBABLY WILL BRING THE LONDON INSURANCE GROUP UNIT HEADTOHEAD WITH THE BANKS GORDON CUNNINGHAM LONDON LIFE'S PRESIDENT AND CHIEF EXECUTIVE SAYS HE INTENDS TO GRAB A LARGER SHARE OF THE INDIVIDUAL LIFE MARKET WHILE THE BANKS ARE WORKING UP THEIR STRATEGIES HE AIMS FOR A 19 MARKET SHARE IN FIVE YEARS UP FROM 15 TODAY LONDON LIFE'S ACHILLES' HEEL COULD BE ITS RELATIVELY EXPENSIVE SALES COMMISSIONS ONCE THE BANKS ARE ABLE TO TAKE FULL ADVANTAGE OF LOWER COST DISTRIBUTION THROUGH THEIR BRANCHES TO CUT OVERHEAD LONDON LIFE IN EFFECT REDUCED THE RATE IT PAYS ON SALES COMMISSIONS AND STOPPED HIRING NEW ADMINISTRATIVE STAFF MORE EXPENSE CUTTING IS IN STORE IF YOUR COMPANY IS NOT A LOWCOST PRODUCER YOU'RE NOT GOING TO BE HERE MR CUNNINGHAM SAYS MANUFACTURERS LIFE INSURANCE CO HAS TURNED THE TABLES ON THE BIG BANKS BY STARTING A SMALL BANK OF ITS OWN UNDER RECENT DEREGULATION JOHN RICHARDSON WHO HEADS THE INSURER'S CANADIAN OPERATIONS SAYS HAVING A BANK SUBSIDIARY MEANS THAT RECIPIENTS OF DEATH BENEFITS ARE MORE LIKELY TO KEEP THEIR MONEY INVESTED WITH MANUFACTURERS LIFE PREVIOUSLY DEATH BENEFIT CHECKS WERE USUALLY DEPOSITED WITH ONE OF THE MAJOR BANKS STILL MANUFACTURERS LIFE IS LOOKING FOR ITS MAIN GROWTH TO COME IN ASIA WHERE A YOUNGER POPULATION AND LESS COMPETITION MEAN BIGGER SALES AND HIGHER MARGINS CANADA CURRENTLY ACCOUNTS FOR ABOUT ONETHIRD OF THE COMPANY'S TOTAL BUSINESS AND WILL SHRINK MORE IN THE FUTURE MANULIFE IS A CANADIAN COMPANY IT GREW UP HERE BUT I DON'T THINK WE'LL EMPHASIZE A LOT OF CAPITALINTENSIVE BUSINESS HERE MR RICHARDSON SAYS 9310280022 931028 COLD SHOULDER AS GLOBAL CRISES MOUNT MORE AMERICANS WANT AMERICA TO STAY HOME IMAGES FROM SOMALIA HAITI REVIVE ISOLATIONIST MOOD PUT CLINTON PLANS AT RISK VIEW IN WILLKIE'S HOMETOWN BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL ELWOOD INDIANA THIS TOWN'S MOST ILLUSTRIOUS NATIVE SON WENDELL WILLKIE TRIED IN VAIN TO CRACK THE ISOLATIONISM THAT FLOURISHED HERE AMID THE CORN AND SOYBEANS THE 1940 REPUBLICAN PRESIDENTIAL CANDIDATE ARGUED THAT AMERICA'S FUTURE SUCCESS WOULD DEPEND ON GETTING TO KNOW ITS GLOBAL NEIGHBORS THE WAY SMALLTOWN HOOSIERS KNEW ONE ANOTHER BUT NOW MR WILLKIE'S ARGUMENT IS BEING TURNED ON ITS HEAD AFTER A HALFCENTURY OF US GLOBAL ACTIVISM AMERICANS ARE TURNING INWARD AGAIN THIS TIME NOT BECAUSE THEY ARE INSULATED FROM THE WORLD BUT BECAUSE THEY KNOW TOO MUCH ABOUT IT AS WITH OTHER PLACES IN AMERICA NEWS TRAVELS FAST TO ELWOOD WHERE SATELLITE DISHES SPROUT EVERYWHERE PHILLIP BROWN A MEMBER OF THE TOWN'S EXECUTIVE BOARD REMEMBERS WATCHING THE PERSIAN GULF WAR WITH SOME PRIDE IN 1991 LAST YEAR HE TUNED IN TO US TROOPS WADING ASHORE IN SOMALIA TO AVERT MASS STARVATION THEN THE NEWS FLASHES BECAME MORE DISTURBING AS THE SOMALI MISSION DRAGGED ON AND OTHER TROUBLE SPOTS BEGAN GETTING ATTENTION SUDDENLY CAME THE IMAGE OF AN AMERICAN SOLDIER'S BODY BEING DRAGGED THROUGH THE STREETS OF MOGADISHU AS SOMALIS CHEERED WE'RE BOMBARDED WITH INFORMATION EVEN BEFORE OUR LEADERS CAN FORMULATE A POLICY COMPLAINS MR BROWN YOU GET TO A POINT OF NUMBNESS AND IT DISCOURAGES AMERICA'S PARTICIPATION IN RISKY VENTURES EVEN IF THEY ARE OF VITAL INTEREST IT IS INFORMATION OVERLOAD NOT IGNORANCE THAT IS FEEDING ISOLATIONISM IT IS THIS OVERWHELMING BURDEN OF DATA THAT IS CAUSING PEOPLE HERE TO RECOIL FROM THE WORLD AND AS THE MOOD INTENSIFIES A JUMPY CONGRESS HAS STARTED DEBATING WHETHER TO LIMIT US INTERVENTION OVERSEAS AND THE CLINTON TEAM IS GRIPPED BY SECONDGUESSING OVER ITS POLICIES THE ADMINISTRATION HAS VACILLATED REPEATEDLY OVER BOSNIA IN SOMALIA AFTER AGGRESSIVELY SEEKING THE ARREST OF GEN MOHAMMED FARAH AIDID THE CLINTON ADMINISTRATION DID AN ABOUTFACE BY STRESSING THAT IT WANTED A POLITICAL SOLUTION AND AN EXIT FOR US TROOPS EARLIER THIS MONTH A NERVOUS PRESIDENT CLINTON ORDERED THE USS HARLAN COUNTY IN THE MIDST OF A HUMANITARIAN MISSION TO HAITI TO WITHDRAW AFTER IT CONFRONTED A SMALL BUT UNRULY MOB WAITING ON THE DOCK IN PORTAUPRINCE WITH THE DISINTEGRATION OF AMERICA'S MASSIVELY ARMED ADVERSARY THE SOVIET UNION PEOPLE HAVE LOST THE SENSE OF WHY US MEN AND WOMEN SHOULD TAKE THE LEAD IN SORTING OUT PROBLEMS IN THE WORLD'S VARIOUS TROUBLE SPOTS RICHARD LEVI AN ATTORNEY IN RUSHVILLE IND SAYS MY INITIAL FEELING IS THAT WE SHOULD TRY TO HELP PEOPLE BUT LET'S FIGURE OUT A WAY TO GIVE HUMANITARIAN AID WITHOUT SENDING OUR SOLDIERS THERE MEANWHILE THE CLINTON TEAM HAS ONLY SPORADICALLY WORKED AT ARTICULATING A CLEAR VISION OF ITS GLOBAL STRATEGY WHEN PRESIDENT CLINTON FINALLY SPOKE ABOUT HAITI HE WAS PRETTY GOOD SAYS SEN NANCY KASSEBAUM A KANSAS REPUBLICAN BUT HE NEVER SPOKE WITH THE CLARITY AND FORCEFULNESS THAT HE HAS WHEN HE TALKS ABOUT HEALTH CARE SHE ADDS ANTHONY LAKE MR CLINTON'S NATIONAL SECURITY ADVISER CONCEDES THAT THE LESSON THE ADMINISTRATION HAS DRAWN FROM THESE RECENT EXPERIENCES IS THAT WITH THE SPEED OF REPORTING AND THE POWER OF IMAGES IF WE HAVEN'T ALREADY DESCRIBED TO CONGRESS AND THE AMERICAN PEOPLE WHAT OUR INTERESTS ARE WHAT OUR MISSION IS THERE'S NO WAY WE CAN CATCH UP THE APPREHENSION PEOPLE FEEL ABOUT MILITARY INVOLVEMENT ABROAD TIES IN WITH OTHER ISOLATIONIST SYMPTOMS A WARINESS OF INTERNATIONALTRADE LIBERALIZATION AND A RESENTMENT OF IMMIGRANTS IF THE ADMINISTRATION DOESN'T GET AHEAD OF THE CURVE THOUGH THE MOOD COULD JEOPARDIZE A NUMBER OF ITS FOREIGNPOLICY GOALS THESE INCLUDE WINNING CONGRESSIONAL APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT STRENGTHENING TIES TO EUROPE AND ASIA IN THE ABSENCE OF AN OVERRIDING THREAT AND PROMOTING WHAT MR CLINTON CALLS THE MORAL DIMENSION OF HIS FOREIGN POLICY BOLSTERING DEMOCRACY AROUND THE WORLD THE END OF THE COLD WAR MAKES IT A LITTLE BIT HARDER FOR AMERICANS TO KNOW WHAT'S AT STAKE SAYS JAMES MADISON CHAIRMAN OF INDIANA UNIVERSITY'S HISTORY DEPARTMENT THERE'S A PERCEPTION THAT IT'S TIME TO TURN INWARD AND SAVE MONEY AND ENERGY FOR THE DOMESTIC ISSUES RATHER THAN BEING POLICEMAN FOR THE WORLD A WALL STREET JOURNAL/NBC NEWS POLL SHOWS THAT 72 OF THOSE SURVEYED EMBRACE THE VIEW THAT THE US SHOULD LET OTHER COUNTRIES AND THE UNITED NATIONS TAKE THE LEAD IN SOLVING INTERNATIONAL CRISES AT THE SAME TIME 71 OF THE RESPONDENTS SAID THAT THE US SHOULD TAKE PART IN UN PEACEKEEPING AROUND THE WORLD JOHN HURST A STOCKY 45YEAROLD FARMER IN TINY MOSCOW IND UNDERSTANDS THAT HE MUST SELL HIS PRODUCTS IN MOSCOW RUSSIA INDEED INDIANA FARMERS ARE KEENLY AWARE THAT ABOUT ONEQUARTER OF THE STATE'S CORN AND SOYBEANS BEING HARVESTED NOW WILL BE FLOATED ON BARGES DOWN THE OHIO AND MISSISSIPPI RIVERS TO GULF OF MEXICO PORTS FROM WHICH IT WILL BE SHIPPED TO JAPAN EUROPE AND THE MIDEAST AS WELL AS TO RUSSIA BUT MR HURST DOESN'T MAKE A CONNECTION BETWEEN THE IMPORTANCE OF THESE WORLDWIDE MARKETS AND WHY THE US NEEDS TO SPEND LARGE SUMS PROMOTING STABILITY ABROAD NOT WHILESSNESS IN NEARBY INDIANAPOLIS AND OTHER DOMESTIC PROBLEMS THAT NEED TENDING HE SAYS MR HURST ALSO NOTES THAT IT IS A STRUGGLE TO MANAGE THE 750ACRE FARM THAT YIELDED STEADY PROFITS FOR HIS FATHER AND GRANDFATHER TO HELP MAKE ENDS MEET HIS WIFE DONNA IS NOW DRIVING A COUNTY SCHOOL BUS I HATE TO NOT HELP PEOPLE BUT IF WE'RE SPENDING MONEY TO BE IN THESE PLACES AND NOT GAINING ANY KIND OF BENEFITS THEN WHY SHOULD WE BE THERE HE ASKS HAVE THESE INTERVENTIONS REALLY HELPED PEOPLE OR HAVE THEY JUST CAUSED MORE PROBLEMS AMERICANS DO SEEM TO FAVOR INTERVENTION WHERE US INTERESTS OR OVERRIDING HUMANITARIAN CONCERNS ARE AT STAKE THE JOURNAL/NBC POLL SHOWS THAT A MAJORITY OF THOSE SURVEYED SUPPORT THE USE OF MILITARY FORCES TO GUARANTEE THE SECURITY OF AN IMPORTANT REGION OF THE WORLD OR TO INTERVENE WHEN US ECONOMIC NEEDS SUCH AS OIL ARE THREATENED A FULL 94 BACKED THE USE OF TROOPS WHEN THE US WAS UNDER DIRECT THREAT AND 67 SAID THEY FAVORED USING MILITARY FORCES TO PREVENT LARGE NUMBERS OF PEOPLE FROM STARVING IN MR WILLKIE'S DAY AMERICANS OPTED FOR AN ALOOF STANCE OUT OF A PREVAILING ASSUMPTION THAT AMERICA WAS DIFFERENT AND BETTER THAN THE REST OF THE WORLD ACCORDING TO MR MADISON THE HISTORIAN NOW PEOPLE ARE WITHDRAWING BECAUSE THEY FEEL A GROWING LOSS OF CONFIDENCE IN THEMSELVES AND GOVERNMENT VICTORY IN THE COLD WAR AND EXPANDING US TRADE DIDN'T PRODUCE THE PROSPERITY AND JOB SECURITY THAT POLITICIANS AND ECONOMISTS PROMISED IF ANYTHING PEOPLE FEEL THAT US MILITARY AND ECONOMIC LEADERSHIP SEEMS TO HAVE GIVEN OTHER NATIONS THE EDGE MANY AMERICANS FEEL THAT AS OTHER COUNTRIES GROW RICHER THE US STILL BEARS THE MAJOR BURDEN OF INTERNATIONAL OPERATIONS AND PAYS MUCH OF THE COST OF COURSE THE SLUGGISH ECONOMIC RECOVERY TOGETHER WITH PERVASIVE CORPORATE RESTRUCTURING FEEDS THE INSECURITIES THE KIND OF ISOLATIONISM WE'RE EXPERIENCING TODAY IS TIED TO ECONOMIC WORRIES THAT PEOPLE HAVE SAYS INDIANA REP LEE HAMILTON CHAIRMAN OF THE HOUSE FOREIGN AFFAIRS COMMITTEE IT MAKES PEOPLE TURN INWARD AND THINK INWARD ONE NOTABLE CONTRAST TO THE INSULATED CHARACTER OF THE COMMUNITY DURING THE WILLKIE ERA IS THE GROWING FOREIGN PRESENCE HERE DURING THE COLD WAR NORMALLY INSULAR HOOSIERS ACCEPTED AN ASSERTIVE US FOREIGN POLICY AS THE PRICE TO KEEP SOVIET MISSILES FROM LANDING ON THEIR CORNFIELDS BUT NOW IRONICALLY IT IS JAPANESE FACTORIES THAT HAVE LANDED THERE ON THE EDGE OF COLUMBUS IND SURROUNDED BY FARMLAND SITS A NEATLY MANICURED INDUSTRIAL PARK KNOWN LOCALLY AS LITTLE TOKYO ITS SLEEK ONESTORY BUILDINGS HOUSE ENKAI AMERICA INC WHICH MANUFACTURES WHEELS TOYOTA INDUSTRIES EQUIPMENT MANUFACTURING INC A DISTRIBUTION CENTER AND ONKYO CORP WHICH MAKES STEREO SPEAKERS THE INDUSTRIAL PARK LOOKS LIKE A COLLEGE CAMPUS AS DROVES OF YOUNG WELLSCRUBBED BLUEJEANCLAD AMERICANS ARRIVE FOR THE 4 PM SHIFT MATTHEW HOWERY A LANKY 23YEAROLD WORKS ON THE ASSEMBLY LINE AT ONKYO HE LOST HIS 8ANHOUR CONSTRUCTION JOB WHEN THE ECONOMY SLOWED HERE HE NOW EARNS AN HOURLY WAGE OF 625 MR HOWERY IS AMBIVALENT ABOUT WORKING FOR A JAPANESE COMPANY HE APPRECIATES THE STEADY JOB BUT HE SAYS PEOPLE KNOW THAT THE JAPANESE MOVED HERE SO THAT THEY CAN SAY THEIR PRODUCTS ARE MADE IN THE USA BUT PEOPLE HERE KNOW THAT THE MONEY GOES BACK TO JAPAN TO MR HOWERY AND HIS FRIENDS THE PRESENCE OF JAPAN IN THEIR TOWN SOMEHOW SIGNALS AN AMERICAN FAILURE IT'S KIND OF A FEELING LIKE WE JUST GOT LAZY HE SAYS SIMILAR SENTIMENTS ARE ECHOED IN THE INDIANAPOLIS HEADQUARTERS OF THE AMERICAN LEGION ROBERT SPANOGLE THE GROUP'S NATIONAL ADJUTANT RECALLS WORKING IN THE 1960 PRESIDENTIAL CAMPAIGN OF JOHN KENNEDY WHO CALLED ON AMERICANS TO BEAR ANY BURDEN AND PAY ANY PRICE TO DEFEND LIBERTY NOW MR SPANOGLE SAYS I THINK THE AMERICAN PEOPLE FEEL DEEP DOWN THAT THERE ARE LIMITS TO WHAT WE CAN DO THERE ARE LIMITS TO BEING A SUPERPOWER ONE OF THE FIRST CASUALTIES OF THIS PESSIMISTIC MOOD HAS BEEN AMERICA'S POSTCOLD WAR FLING WITH THE UN WITHOUT A HOSTILE SOVIET UNION TO PARALYZE IT WITH ITS VETO THE CLINTON ADMINISTRATION HOPED THAT THE UN WOULD BECOME THE WORLD'S POLICE OFFICER NOW THERE IS A BITTER PERCEPTION THAT THE UN BADLY BOTCHED THE OPERATION IN SOMALIA CONTRIBUTING TO MORE THAN 100 CASUALTIES OF US RANGERS SEVERAL WEEKS AGO AND CHANGING THE MISSION WITHOUT CONSULTING THE ADMINISTRATION ALL OF A SUDDEN YOU HAVE A RESOLUTION AT THE UN AND WE'RE INTO NATIONBUILDING SAYS MR SPANOGLE TO OTHERS THE RELIANCE ON THE UN EMBODIES THE US RETREAT FROM ITS EARLIER LEADERSHIP ROLE MULTILATERALISM BECAME SOMETHING OF A COVER FOR US RETRENCHMENT SAYS REPUBLICAN RICHARD LUGAR INDIANA'S SENIOR SENATOR GONE TOO WITH THE COLLAPSE OF COMMUNISM IS THE NOTION THAT THE US IS THE PRESERVER OF MORAL VALUES IN THE WORLD AT THE PRESBYTERIAN CHURCH IN RUSHVILLE IND THE REV MAE HICKS SAYS THAT HER CONGREGANTS WILLINGLY CONTRIBUTED CLOTHES AND BLANKETS TO LAST SUMMER'S FLOOD VICTIMS IN NEARBY MIDWESTERN STATES BUT THEY SEE LITTLE REASON FOR HUMANITARIAN MISSIONS ABROAD I THINK WE SHOULD BE OUT IN THE WORLD BUT MY CONGREGATION MAY NOT AGREE WITH THAT SHE SAYS NEITHER DO THE GRAYHAIRED FORMER WARRIORS AT VETERANS OF FOREIGN WARS POST 5782 ONLY A STONE'S THROW FROM THE ELWOOD HOUSE WHERE WENDELL WILLKIE GREW UP MOST OF THE REGULARS HERE FOUGHT IN WORLD WAR II OR THE KOREAN CONFLICT SITTING AROUND THE BAR ON A RECENT AFTERNOON WATCHING TV GAME SHOWS AND DRINKING BOTTLES OF BUDWEISER BEER THEY ARE PUZZLED BY THEIR NATION'S LATEST MILITARY OUTINGS IT ISN'T OUR JOB TO HELP THESE PEOPLE WITH NATIONBUILDING GROUSES PHILIP ARNOLD THE POST'S 64YEAROLD QUARTERMASTER THEY SHOULD KNOW THEMSELVES HOW TO SORT OUT WHO'S HONEST FROM WHO'S DISHONEST LET HAITI TAKE CARE OF ITSELF ABOUT AN HOUR TO THE SOUTH IN RUSHVILLE THOMAS TUSH A COMMODITIES BROKER SITS IN HIS TINY OFFICE STARING ALTERNATELY AT A COMPUTER SCREEN SHOWING THE LATEST SOYBEAN TRADES ON THE CHICAGO BOARD OF TRADE AND A TV SET TUNED TO CNN MR TUSH IS ELECTRONICALLY WIRED TO THE REST OF THE GLOBE BUT HE THINKS THE US SHOULD MAINTAIN ITS DISTANCE THE RUSSIANS USED TO DO SOME OF THESE THINGS FOR US HE SAYS MAYBE THEY WERE COMMUNISTS BUT WHEN THEY WERE THERE WE DIDN'T HAVE TO GET INVOLVED IN ALL THESE CIVIL WARS THERE WEREN'T ALL THESE PEOPLE STARVING HECK THEY WERE DOING US A FAVOR 9310280021 931028 THE CLINTON HEALTH PLAN CHILDREN'S HEALTH IS CALLED AT RISK DUE TO POLLUTION BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES ENVIRONMENTAL AND MEDICAL GROUPS OPENING UP A NEW FRONT IN THE BATTLE OVER CLEANAIR LAWS BLASTED FEDERAL STANDARDS FOR FAILING TO PROTECT CHILDREN ADEQUATELY FROM POTENTIAL LONGTERM HEALTH DAMAGE CAUSED BY OZONE AND OTHER POLLUTANTS A REPORT RELEASED HERE YESTERDAY BY THE NATURAL RESOURCES DEFENSE COUNCIL WHICH WAS ENDORSED BY THE AMERICAN LUNG ASSOCIATION AND A REPRESENTATIVE OF THE AMERICAN ACADEMY OF PEDIATRICS CONCLUDES THAT FEDERAL AIRPOLLUTION LAWS AND REGULATIONS DON'T TAKE INTO ACCOUNT COMPELLING MEDICAL EVIDENCE OF THE INCREASED VULNERABILITY OF CHILDREN TO OZONE AND OTHER FORMS OF AIR POLLUTION ONE OF THE MOST COMPREHENSIVE ANALYSES OF MEDICAL AND SCIENTIFIC RESEARCH ON THE SUBJECT THE REPORT IS LIKELY TO INFLUENCE CLEANAIR DEBATES AS STATE AND FEDERAL REGULATORS WRESTLE WITH HOW TO CARRY OUT AMENDMENTS TO THE CLEAN AIR ACT THE REPORT CALLS FOR TIGHTER OZONE STANDARDS TO REDUCE THE RISK FROM REPEATED AND CHRONIC EXPOSURE WHILE URGING TOUGHER STANDARDS TO CONTROL EMISSIONS OF PARTICULATES AND NITROGEN DIOXIDE AS WELL SINCE CHILDREN SPEND MORE TIME OUTDOORS THAN MOST ADULTS ABSORB PROPORTIONATELY MORE POLLUTION BASED ON THEIR BODY WEIGHT AND HAVE BRONCHIAL SYSTEMS THAT TRAP MORE PARTICLES THAN FULLY DEVELOPED LUNGS AND AIRWAYS THE STUDY SAYS THEY TEND TO BE MORE SUSCEPTIBLE TO AIRBORNE POLLUTANTS THAN ANY OTHER SEGMENT OF THE POPULATION THE REPORT INDICATES THAT SOME ENVIRONMENTAL GROUPS NOW HAVE DECIDED TO STEP UP LOBBYING LITIGATION AND PUBLICRELATIONS CAMPAIGNS TO PRESS FOR CHANGES SPECIFICALLY AIMED AT PROTECTING CHILDREN FROM DIRTY AIR THE DANGERS OF PESTICIDES AND OTHER ENVIRONMENTAL HAZARDS THE US ENVIRONMENTAL PROTECTION AGENCY SHORTLY MUST DRAFT A CLEANAIR IMPLEMENTATION PLAN COVERING CALIFORNIA WHICH COULD INCLUDE SOME OF THE CONTROL STRATEGIES ADVOCATED BY THE NRDC AND OTHER GROUPS IN ADDITION THE EPA IS REASSESSING MANY OF ITS CLEANAIR POLICIES AND ASSUMPTIONS INCLUDING THE RELATIVE IMPACT OF VEHICLE POLLUTION IN VARIOUS METROPOLITAN AREAS MARY NICHOLS RECENTLY CONFIRMED AS HEAD OF THE EPA'S AIR POLLUTION OFFICE CONTRIBUTED SUBSTANTIALLY TO THE STUDY BEFORE HER NOMINATION ACCORDING TO THE ACKNOWLEDGMENT PAGE OF THE REPORT 9310280020 931028 MARKETING KING OF BEERS' WANTS TO RULE MORE OF JAPAN BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO STUCK WITH A LOWLY MARKET SHARE IN JAPAN FOR MORE THAN A DECADE THE KING OF BEERS IS TAKING DRAMATIC STEPS TO LIVE UP TO ITS NAME LAST MONTH ANHEUSERBUSCH COS LAUNCHED A JOINT VENTURE WITH KIRIN BREWERY CO WHICH HAS ABOUT HALF THE JAPANESE BEER MARKET UNDER THE AGREEMENT BUDWEISER JAPAN CO AS THE VENTURE IS CALLED WILL MARKET AND DISTRIBUTE BUD THROUGH KIRIN'S CHANNELS AS WELL AS ESTABLISH ITS OWN AND USE KIRIN'S BREWING FACILITIES KIRIN SAYS THAT FOR ITS 10 INVESTMENT IT WILL LEARN ABOUT THE WORLDWIDE BEER MARKET FROM THE AMERICAN BREWER THE VENTURE IS A BOLD MOVE FOR THE ST LOUISBASED BREWER WHOSE FOOTHOLD IN THE JAPANESE MARKET FOR 12 YEARS HAS BEEN LIMITED TO A LICENSING AGREEMENT WITH SUNTORY LTD THE WEAKEST OF JAPAN'S FOUR MAJOR BREWERS THROUGH SUNTORY BUDWEISER HAS BECOME JAPAN'S FAVORITE FOREIGN BEER BUT THAT DOESN'T MEAN MUCH LAST YEAR'S SALES WERE A MEAGER 12 OF JAPAN'S BEER MARKET OR ABOUT 101 MILLION CASES WHILE BUD'S US MARKET SHARE WAS 216 OR ABOUT 330 MILLION CASES FOR DECADES BEER HAS BEEN JAPAN'S MOST POPULAR ALCOHOLIC BEVERAGE ACCOUNTING FOR MORE THAN 70 OF THE COUNTRY'S ANNUAL ALCOHOLIC CONSUMPTION THE AVERAGE JAPANESE CONSUMER DRINKS 54 LITERS A YEAR COMPARED WITH THE 91 LITERS HIS AMERICAN COUNTERPART DRINKS WE WANT TO MAKE BUDWEISER INTO A MAINSTREAM BEER IN JAPAN SAYS JEFFREY EWINS MARKETING DIRECTOR OF BUDWEISER JAPAN IT HAS SET AN AMBITIOUS GOAL OF QUADRUPLING ITS SHARE TO 5 IN 10 YEARS WHILE IT'S UNUSUAL FOR A US COMPANY IN JAPAN TO DISMISS A PARTNER FOR A RIVAL ANHEUSER'S MOVE IS ONE EXAMPLE OF AN INCREASING TREND AMONG FOREIGN COMPANIES WITH EXPERIENCE IN JAPAN TO TRY TO EXPAND THEIR OPERATIONAL CONTROL BUT THERE ARE RISKS TO SUCH ARRANGEMENTS TWO YEARS AGO WHEN BORDEN INC DISSOLVED A 20YEAR LICENSING AGREEMENT WITH MEIJI MILK PRODUCTS CO TO SELL ICE CREAM ON ITS OWN ITS SALES PLUMMETED BORDEN FOUND IT WAS MORE DIFFICULT THAN EXPECTED TO CULTIVATE NEW SALES CHANNELS IT HAS BOUNCED BACK BUT STILL SELLS BELOW EARLIER LEVELS ANHEUSER BELIEVES IT CAN AVOID THAT FATE THE VENTURE IN WHICH THE BREWER HAS A 90 STAKE WILL GIVE IT A WIDER SALES NETWORK AND MORE CONTROL IN MARKETING ITS BEER THE VENTURE CAN HOLD ITS OWN PROMOTIONAL CAMPAIGNS ANHEUSER'S LICENSING AGREEMENT LEFT IT COMPLETELY DEPENDENT ON SUNTORY'S WEAK DISTRIBUTION CHANNELS AND ADVERTISING AND THE JAPANESE BREWER THOUGHT BUD DIDN'T NEED MUCH PROMOTING THE JOINT VENTURE QUICKLY STARTED AN AGGRESSIVE MARKETING CAMPAIGN BEGINNING WITH ITS SIGNATURE CLYDESDALE HORSES PULLING A CARTFUL OF BUDS THROUGH DOWNTOWN TOKYO SALESMEN ARE HANDING OUT THE CHARACTERISTIC BOWTIESHAPED NEON SIGNS TO RESTAURANTS IN MAJOR CITIES AND THE COMPANY STARTED AIRING ITS US COMMERCIALS IN JAPAN THE WORLD'S NO 1 BEER SAYS THE DEEPVOICED JAPANESE NARRATOR AS A MAN DIVES INTO A SWIMMING POOL YOU WANT TO DRINK MORE AND MORE BUT THAT LINE IS GETTING HARDER TO SELL BECAUSE PEOPLE ARE DRINKING LESS IN THE FIRST EIGHT MONTHS OF THIS YEAR BEER SALES WERE DOWN 22 TO 119 BILLION GALLONS THE FIRST DROP IN EIGHT YEARS BUDWEISER JAPAN OFFICIALS EXPECT TO SELL A FLAT 10 MILLION CASES NEXT YEAR THE COMPANY ALSO IS TRYING TO REINVENT BUD'S IMAGE FOR YEARS SUNTORY MARKETED BUDWEISER AS A FASHIONABLE EXPENSIVE BEER THAT HANDSOME AMERICAN ACTORS GUZZLED IN MOVIES AND SUGGESTED THAT YOUNG COUPLES SIP THE DRINK IN CHIC BARS AT ONE POINT BUDWEISER'S SCREWCAP BOTTLE BECAME A TOOL TO TEST HOW HIP COLLEGE STUDENTS WERE TRENDCONSCIOUS STUDENTS LAUGHED AT COLLEAGUES WHO TRIED IN VAIN TO OPEN A BOTTLE WITH AN OPENER BUT NOW THAT BUDWEISER'S CACHET IS FADING THE VENTURE SAYS IT'S TRYING TO APPEAL TO A NEW CONSUMER HEAVYDRINKING MIDDLEAGED MEN TO REACH THEM IT HAS LAUNCHED FULLPAGE NEWSPAPER ADS PROCLAIMING THAT THE AGE WHEN BEERS BECAME TRENDS AND FASHION IS OVER SUCH A SUDDEN CHANGE SURPRISES BEER LOVERS LIKE SUSUMU NAGAO THE 31YEAROLD TOKYO PHOTOGRAPHER SAYS HE REMEMBERS WHEN A FEW YEARS AGO HE PAID 800 YEN 737 FOR A BOTTLE OF BUD IN STYLISH BARS TO AFFECT A WESTERN AIR FOR MR NAGAO BUD WAS A FASHION STATEMENT BUT THE TASTE WAS TOO WATERY HE SAYS AS A BEER TO DRINK EVERY DAY SAYS MR NAGAO I'D PREFER ANY OF THE DOMESTIC BEERS OVER BUD A BUDWEISER JAPAN SPOKESMAN SAYS THE BEER ISN'T WATERY IT'S DRINKABLE THERE'S ALSO A CONTRADICTION IN BUDWEISER JAPAN'S STRATEGY DESPITE ITS PUSH TO MARKET THE BREW AS AN EVERYDAY BEER IT'S PRICING IT AT A PREMIUM THE COMPANY WHICH PLANS TO IMPORT CANS OF BUD FROM ITS LOS ANGELES PLANT AS WELL AS BREW SOME AT KI SHIPPING COSTS LEAD TO A SUGGESTED RETAIL PRICE OF 240 YEN FOR A 12OUNCE CAN OR 9 HIGHER THAN MOST DOMESTIC BEERS MEANWHILE JAPAN'S RAPIDLY EMERGING DISCOUNT STORES WHICH IMPORT BUDWEISER FROM THE US ON THEIR OWN SELL IT AS ONE OF THEIR CHEAPEST BRANDS IN FACT BECAUSE OF A STRONG YEN THE STORES FIND THEY CAN SELL IMPORTED BEER FOR LESS THAN DOMESTIC KK COWBOY A DISCOUNT LIQUOR STORE CHAIN IN THE NORTHERN ISLAND OF HOKKAIDO SAYS BUD MAKES UP AS MUCH AS 15 OF ITS BEER SALES BECAUSE THE CHAIN CAN PRICE IT AT LEAST 10 CHEAPER THAN MOST JAPANESE BEERS IT'S GOING TO GET HARDER AND HARDER FOR BUDWEISER TO MAINTAIN ITS PRICE SAYS TOSHIKO BINDER AN ANALYST FOR SG WARBURG SECURITIES JAPAN LTD BUDWEISER JAPAN OFFICIALS SAY THEY HAVE NO IMMEDIATE PLANS TO LOWER PRICES BUT MS BINDER SAYS THAT EVENTUALLY THE BREWER MAY BE FORCED TO MATCH IF NOT UNDERCUTTHE PRICE OF DOMESTIC BEERS IT CAN'T COMPETE BY TASTE SHE SAYS WHAT ELSE CAN IT DO 9310280019 931028 MIDLAND WALWYN TO BUY FINSCO TORONTO MIDLAND WALWYN INC SAID IT AGREED WITH IMASCO LTD TO PURCHASE ALL THE SHARES OF FINSCO SERVICES LTD TERMS WEREN'T DISCLOSED MIDLAND WALWYN SAID THE TRANSACTION WHICH IS SUBJECT TO THE EXECUTION OF A DEFINITIVE AGREEMENT AND TO REGULATORY APPROVAL IS EXPECTED TO CLOSE BEFORE THE END OF THE YEAR MIDLAND WALWYN SAID FINSCO IS A MUTUALFUND MANAGEMENT AND SERVICE COMPANY SPECIALIZING IN MUTUALFUND ADMINISTRATION MONEYMARKET FUNDS AND AFFINITY GROUP RETIREMENT AND SAVINGS PLANS IT SAID FINSCO HAS ABOUT C425 MILLION US3229 MILLION IN ASSETS UNDER ADMINISTRATION 9310280018 931028 MASSBANK TO REPURCHASE SHARES READING MASS MASSBANK CORP SAID ITS BOARD APPROVED THE REPURCHASE OF UP TO 100000 COMMON SHARES OVER THE NEXT YEAR THE COMPANY SAID THE REPURCHASED SHARES WILL BE USED FOR ITS STOCKOPTION PLAN IN NATIONAL OVERTHECOUNTER TRADING MASSBANK SHARES ROSE 1375 TO 3850 9310280017 931028 TECHNOLOGY INTEL TO BOOST ITS PRODUCTION OF FLASH CHIPS BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL SANTA CLARA CALIF INTEL CORP MOVING TO RECOVER FROM ONE OF ITS FEW STUMBLES OF RECENT YEARS ANNOUNCED PLANS TO REASSERT ITS DOMINANCE OVER A HUGE NEW MICROCHIP MARKET THE SEMICONDUCTOR GIANT BASED IN SANTA CLARA CALIF SCOOPED MAJOR RIVALS BY ANNOUNCING VOLUME SHIPMENTS OF A SOCALLED FLASH MEMORY CHIP THAT CAN STORE 16 MEGABITS OF DATA INTEL ALSO ANNOUNCED A 32MEGABIT PRODUCT THAT CONSISTS OF TWO CHIPS SANDWICHED TOGETHER A NEW TRICK IN SEMICONDUCTOR CIRCLES AS WELL AS CARDSIZED STORAGE DEVICES BASED ON FLASH TECHNOLOGY PERHAPS MORE IMPORTANT INTEL EXECUTIVES PREDICTED A MINDBOGGLING JUMP IN FLASH MANUFACTURING CAPACITY AS JAPANESE PARTNERS RAMP UP PRODUCTION GORDON MOORE INTEL'S CHAIRMAN SAID THE COMPANY EXPECTS TO SHIP 33 MILLION FLASH CHIPS IN 1993 UP FROM 15 MILLION IN 1992 AND SAID SHIPMENTS SHOULD REACH 80 MILLION UNITS IN 1994 THAT'S CLOSE TO A RECORD FOR THE WORLD'S LARGEST CHIP MAKER ITS FLAGSHIP 486 MICROPROCESSOR FOR EXAMPLE IS ONLY BEING PRODUCED AT AN ANNUAL RATE OF ABOUT 40 MILLION UNITS FLASH CHIPS RETAIN DATA WITHOUT A SUPPLY OF ELECTRICAL CURRENT AND CAN BE ERASED AND REPROGRAMMED FAR MORE QUICKLY THAN OTHER TYPES OF MEMORY CHIPS THEY HAVE LONG BEEN USED FOR SOME APPLICATIONS IN PERSONAL COMPUTERS AND CELLULAR PHONES BUT MARKET WATCHERS SEE A MUCH LARGER OPPORTUNITY LATER IN THE DECADE AS FLASH CHIPS BEGIN TO REPLACE HARD AND FLOPPY DISKDRIVES IN HANDHELD COMPUTERS INTEL BUILDING ON TECHNOLOGY PIONEERED BY JAPAN'S TOSHIBA CORP JUMPED TO A BIG LEAD IN THE FIELD THAT SALES EDGE WAS JEOPARDIZED HOWEVER BY MAJOR PRODUCTION PROBLEMS AT A JAPANESE PARTNER NMB SEMICONDUCTOR CO IN A VENTURE LATER RENAMED NPNX INTEL WAS FORCED TO DELAY SHIPMENTS TO SOME CUSTOMERS BY MORE THAN A YEAR AND WOUND UP SENDING 30 ENGINEERS TO HELP PERFECT THE MANUFACTURING PROCESS THE PROBLEM OPENED THE DOOR FOR ADVANCED MICRO DEVICES INC INTEL'S ARCHRIVAL IN THE MICROPROCESSOR MARKET AND STARTUPS SUCH AS CATALYST SEMICONDUCTOR INC AND SUNDISK CORP BOTH BASED IN SANTA CLARA CALIF AMD EXECUTIVES BELIEVE THEY PULLED ROUGHLY EVEN WITH INTEL IN 1993 WITH ABOUT 40 OF THE MARKET EACH THAT'S A FAR CRY FROM LAST YEAR WHEN INTEL ACCOUNTED FOR ROUGHLY 70 OF THE 300 MILLION FLASH MARKET IN 1992 COMPARED WITH 15 FOR AMD ACCORDING TO WALT LAHTI AN ANALYST AT INSTAT INC IN SCOTTSDALE ARIZ WE ARE APPROXIMATELY NECKANDNECK WITH THEM SAID KURT WOLF A TECHNICAL MARKETING MANAGER FOR AMD IN SUNNYVALE CALIF AMD WHICH HAS ONLY SOLD 1MEGABIT AND 2MEGABIT CHIPS TO DATE ON MONDAY WILL ANNOUNCE A 4MEGABIT CHIP THAT USES ONLY FIVE VOLTS OF ELECTICAL CURRENT TO ERASE DATA A POWER SAVINGS OVER THE 12 VOLTS NEEDED ON INTEL'S CHIP DAVID HOUSE INTEL'S SENIOR VICE PRESIDENT OF CORPORATE STRATEGY WOULD NOT ESTIMATE INTEL'S CURRENT MARKET SHARE BUT INSISTED THE COMPANY REMAINS NO 1 IN FLASH CHIPS INTEL'S NEW 16MEGABIT AND 32MEGABIT PRODUCTS ARE BEING BUILT BY ANOTHER JAPANESE PARTNER SHARP CO THE 16MEGABIT CHIPS COST 85 IN QUANTITIES OF AT LEAST 10000 THE 32MEGABIT COMBINATION COSTS 190 AND WILL BE SHIPPED IN VOLUME IN THE FOURTHQUARTER BESIDES THE NEW CHIPS INTEL INTRODUCED DATASTORAGE CARDS USING FLASH MEMORY THAT STORE FROM 4 MEGABYTES TO 40 MEGABYTES OF DATA MR HOUSE PREDICTED THEY WILL FIND WIDE POPULARITY IN HANDHELD COMPUTERS AN EARLIER VERSION ALREADY COMES WITH THE FIRST NEWTON SYSTEM FROM APPLE COMPUTER INC INTEL ALSO SHOWED A SLIGHTLY THICKER CARD DESIGNED TO REPLACE DISKDRIVES THAT STORE EITHER 5 MEGABYTES OR 10 MEGABYTES 9310280016 931028 LEISURE & ARTS BEST SELLERS COMPILED BY PUBLISHERS WEEKLY FROM DATA FROM LARGECITY BOOKSTORES BOOKSTORE CHAINS AND LOCAL BESTSELLER LISTS ACROSS THE US COPYRIGHT 1993 REED PUBLISHING USA 9310280015 931028 INTERNATIONAL TAIWAN'S RESERVES GROW TAIPEI TAIWAN'S FOREIGNEXCHANGE RESERVES ROSE TO 8492 BILLION AT THE END OF SEPTEMBER AN INCREASE OF 123 BILLION FROM THE PREVIOUS MONTH A REPORT TO THE FINANCE COMMITTEE OF TAIWAN'S PARLIAMENT SAID TAIWAN'S FOREIGNEXCHANGE RESERVES WERE THE THIRDLARGEST IN THE WORLD FOLLOWING JAPAN'S AND GERMANY'S 9310280014 931028 BUSINESS BRIEF TAMBRANDS INC THIRDQUARTER NET FELL 29 SALES SLID 75 DURING PERIOD TAMBRANDS INC REPORTED A 29 DECLINE IN THIRDQUARTER NET INCOME ON A 75 SALES DROP THAT THE TAMPON MAKER BLAMED ON THE WEAKENING OF EUROPEAN CURRENCIES THE COMPANY REPORTED THIRDQUARTER NET INCOME OF 238 MILLION OR 62 CENTS A SHARE OFF FROM 336 MILLION OR 85 CENTS A SHARE A YEAR EARLIER SALES DECLINED IN THE LATEST QUARTER TO 1614 MILLION FROM 1745 MILLION A YEAR EARLIER WEAKER EUROPEAN CURRENCIES MEAN THAT SALES IN EUROPE TRANSLATE INTO FEWER US DOLLARS WHEN AMERICAN COMPANIES REPORT THEIR RESULTS THE WHITE PLAINS NY COMPANY SAID ITS US SALES AND WORLDWIDE UNIT VOLUMES IN THE LATEST QUARTER WERE VIRTUALLY EQUAL TO YEAREARLIER LEVELS MARKETING SELLING AND DISTRIBUTION EXPENSES ROSE HOWEVER THE COMPANY SAID IT EXPECTS SUCH EXPENSES FOR THE FULL YEAR TO EXCEED 1992 LEVELS 9310280013 931028 LAW LCI EXEXECUTIVES AWARDED 72 MILLION IN DISCRIMINATION SUIT COLUMBUS OHIO A JURY IN AN AGEDISCRIMINATION CASE AWARDED LCI INTERNATIONAL INC'S FORMER PRESIDENT AND ANOTHER FORMER EXECUTIVE 51 MILLION IN COMPENSATORY DAMAGES AND 21 MILLION IN PUNITIVE DAMAGES THOMAS J BYRNES FORMER PRESIDENT AND CHIEF OPERATING OFFICER AND RICHARD J OTTO FORMER VICE PRESIDENT FOR STANDARDS AND ANALYSIS CLAIMED THEY WERE FIRED AFTER LCI USED THEIR TELECOMMUNICATIONS EXPERTISE AND WANTED TO REPLACE THEM WITH YOUNGER LOWERCOST EMPLOYEES THE MCLEAN VA TELECOMMUNICATIONS COMPANY SAID IT WILL APPEAL THE VERDICT THERE'S NO BASIS IN FACTS IN EVIDENCE OR IN REALITY FOR A VERDICT LIKE THIS SAID LCI'S GENERAL COUNSEL JAMES D HEFLINGER THE FRANKLIN COUNTY OHIO COURT OF COMMON PLEAS JURY AWARDED MR BYRNES 49 MILLION IN COMPENSATORY DAMAGES AND 2 MILLION IN PUNITIVE DAMAGES MR BYRNES WAS 51 YEARS OLD WHEN HE WAS FIRED IN JANUARY 1991 LCI CONTENDS THAT MR BYRNES WAS FIRED FOR JOBPERFORMANCERELATED REASONS AND ASSERTS THAT THE COMPANY WAS LOSING MONEY DURING HIS TENURE BUT RUSSELL KELM A COLUMBUS OHIOBASED ATTORNEY FOR BOTH MEN SAID LCI'S REVENUE AND PROFITS INCREASED DRAMATICALLY IN 1990 WHEN MR BYRNES WAS PRESIDENT MR OTTO WAS AWARDED 163000 IN COMPENSATORY DAMAGES AND 100000 IN PUNITIVE DAMAGES MR OTTO WAS 62 WHEN HE LEFT THE COMPANY IN LATE 1990 THE COMPANY SAID IT BELIEVED MR OTTO RETIRED VOLUNTARILY BUT MR KELM SAID HE WAS FORCED OUT THE ATTORNEY SAID HE WILL REQUEST ANOTHER 23 MILLION FROM LCI AT A HEARING FRIDAY TO COVER THE VALUE OF STOCK THAT HIS CLIENTS WOULD HAVE HELD IF THEY HADN'T BEEN FIRED 9310280012 931028 THE CLINTON HEALTH PLAN RIVAL PLANS GAIN STRENGTH BUT NONE CLAIM MAJORITY BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IT'S A GOOD THING PRESIDENT CLINTON DISAVOWED PRIDE OF AUTHORSHIP IN THE HEALTHREFORM PLAN NOW BEFORE CONGRESS BECAUSE THERE ARE SCORES OF AUTHORS AND A HALF DOZEN RIVAL PLANS WAITING TO COMPETE WITH HIS ON CAPITOL HILL AND BY ONE OF MR CLINTON'S MOST OFTCITED BENCHMARKS BIPARTISANSHIP EARLY SIGNS SUGGEST THAT THE DEBATE COULD DRIFT TOWARD A CENTRIST ALTERNATIVE THAT PROMISES LESS INTERFERENCE IN THE ECONOMIC MARKETPLACE BUT STOPS SHORT OF THE ADMINISTRATION'S GUARANTEE OF HEALTH COVERAGE FOR ALL AMERICANS IT'S FRANKLY A LESS AMBITIOUS PLAN ADMITS SEN JOSEPH LIEBERMAN D CONN WHO LAST WEEK JOINED TWO DEMOCRATS AND ONE REPUBLICAN IN SPONSORING THE PLAN DESPITE A PERSONAL APPEAL FROM MR CLINTON NOT TO DO SO BUT WITH 27 DEMOCRATIC AND 21 REPUBLICANS JOINING PRINCIPAL AUTHORS JIM COOPER D TENN AND FRED GRANDY R IOWA TO COSPONSOR THE BILL IN THE HOUSE IT'S ALSO THE ONLY PLAN THAT CAN NOW BOAST SUBSTANTIAL SUPPORT FROM BOTH PARTIES AT THE OUTSET OF WHAT PROMISES TO BE A LONG ARDUOUS AND CONFUSING CONGRESSIONAL DEBATE HOWEVER NONE OF THE PLANS ON THE TABLE CAN CLAIM ANYTHING NEAR A MAJORITY AND BEYOND THE THOUSANDS OF SMALL DETAILS IN MR CLINTON'S 1336PAGE PROPOSAL THE COMPETITION FOR SUPPORT WILL TURN ON THE CLASH OF SOME OF THE BIGGEST IDEAS IN AMERICAN POLITICS THE QUEST FOR SECURITY VS THE DESIRE TO PRESERVE INDIVIDUAL FREEDOM THE YEARNING FOR GOVERNMENT ACTION VS CYNICISM ABOUT GOVERNMENT'S ABILITY TO DELIVER THE NEEDS OF THE POOR AND AGED VS THE ANXIETIES OF AN INCREASINGLY HARDPRESSED MIDDLE CLASS ANOTHER POTENTIALLY INCENDIARY COMPLICATION IS COVERAGE OF ABORTION AS UNDERSCORED BY THE PRESENCE OF ABORTIONRIGHTS CRUSADER KATE MICHELMAN AT YESTERDAY'S UNVEILING OF THE CLINTON PLAN THESE ARE NITROGLYCERINE ISSUES SAYS MR COOPER THE PROPOSAL FOR A FULLY FEDERALLY RUN SYSTEM KNOWN AS SINGLE PAYER AND OFFERED BY REP JIM MCDERMOTT D WASH AND SEN PAUL WELLSTONE D MINN OFFERS THE CLEAREST ASSURANCE OF COVERAGE AND HAS 89 SPONSORS IN THE HOUSE BUT IT IS THE MOST VULNERABLE TO ATTACK AS A BUREAUCRATIC NIGHTMARE MR COOPER'S PLAN CALMS CONSERVATIVE JITTERS BY NOT REQUIRING EMPLOYERS TO PROVIDE COVERAGE BUT ANGERS LIBERALS BY LEAVING SOME PEOPLE UNINSURED THE PRINCIPAL SENATE REPUBLICAN PLAN OFFERED BY MINORITY LEADER BOB DOLE OF KANSAS SEN JOHN CHAFEE OF RHODE ISLAND AND SOME 25 OTHERS PURPORTS TO MATCH MR CLINTON'S PROMISE OF UNIVERSAL COVERAGE BUT IT WOULD DO SO BY REQUIRING INDIVIDUALS NOT EMPLOYERS TO OBTAIN HEALTH INSURANCE WHICH CRITICS ON THE LEFT AND RIGHT DECRY AS UNWIELDY A PLAN BY PHIL GRAMM OF TEXAS AND 10 OTHER SENATE GOP CONSERVATIVES WHICH RELIES LARGELY ON LETTING AMERICANS ESTABLISH TAXFREE ACCOUNTS FOR MEDICAL EXPENSES PRESERVES UNFETTERED INDIVIDUAL FREEDOM BUT WOULDN'T COVER EVERYONE NEITHER WOULD THE LEADING HOUSE REPUBLICAN PLAN WITH MORE THAN 100 COSPONSORS WHICH REQUIRES EMPLOYERS TO OFFER INSURANCE COVERAGE BUT DOESN'T REQUIRE THEM TO PAY FOR IT BY BLENDING BOTH UNIVERSAL COVERAGE AND THE PROMISE OF COST CONTROLS INTO THE COUNTRY'S CURRENT EMPLOYERBASED SYSTEM MR CLINTON'S PLAN ON ITS FACE WOULD SEEM TO CAPTURE THE POLITICAL HIGH GROUND BUT ITS REACH AND COMPLEXITY ALSO MAKE IT THE BIGGEST TARGET FOR PARTISANS ON ALL SIDES YESTERDAY'S OPENING SALVO FROM HOUSE GOP WHIP NEWT GINGRICH INSISTING THAT THE MANDATED EMPLOYER CONTRIBUTIONS TOWARD HEALTH COVERAGE BE LABELED A TAX WAS JUST THE BEGINNING OF THE BATTLE TO DEFINE THE TERMS OF DEBATE THE GOP'S ULTIMATE ROLE IN CRAFTING THE LEGISLATION REMAINS UNCLEAR MESSRS GINGRICH AND GRAMM EXEMPLARS OF THE COMBATIVE CONSERVATIVE WING THAT INCREASINGLY DRIVES NATIONAL REPUBLICAN POLITICS SEEK UNEQUIVOCALLY TO KILL MR CLINTON'S PLAN NOT MODIFY IT BEFORE PURSUING ALTERNATIVE IDEAS AMONG HOUSE DEMOCRATS WHO ARE ACCUSTOMED TO GETTING THEIR WAY INTEREST IN A BROAD BIPARTISAN ACCOMMODATION IS LUKEWARM AT BEST THERE ARE ABOUT 15 REPUBLICANS CONCERNED MORE ABOUT THE POLICY THAN THE POLITICS MR MCDERMOTT COMPLAINS THE REST OF THEM ARE MORE CONCERNED ABOUT BILL CLINTON NOT BEING REELECTED PRESIDENT OF THE UNITED STATES PROSPECTS IN THE SENATE ARE FAR MORE COMPLICATED SENATE RULES WHICH REQUIRE 60 VOTES TO FEND OFF A FILIBUSTER ENSURE THAT THE 56SEAT DEMOCRATIC MAJORITY WILL NEED COOPERATION FROM AT LEAST A HANDFUL OF REPUBLICAN MODERATES THE WHITE HOUSE HAS BEEN PURSUING A SIGNIFICANTLY LARGER BLOC BY COURTING MESSRS DOLE AND CHAFEE TOMORROW FOR INSTANCE HILLARY RODHAM CLINTON WILL ACCOMPANY THE REPUBLICAN LEADER TO A MIDWEST SUMMIT ON HEALTH CARE IN KANSAS CITY BUT MR DOLE MR GRAMM'S POTENTIAL RIVAL FOR THE 1996 REPUBLICAN PRESIDENTIAL NOMINATION MAY ULTIMATELY FACE A CHOICE BETWEEN MAKING HEALTH REFORM A CAPSTONE OF HIS LEGISLATIVE CAREER OR THE STARTING POINT FOR A CHALLENGE TO MR CLINTON OF COURSE MR CLINTON'S PLAN FACES TROUBLE IN HIS OWN PARTY AS WELL SEN DANIEL MOYNIHAN OF NEW YORK THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE HAS BEEN OPENLY SKEPTICAL OF THE ADMINISTRATION'S PLAN FOR FINANCING ITS PROGRAM WHILE SUCH POWERFUL HOUSE FIGURES AS WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI OF ILLINOIS AND ENERGY AND COMMERCE CHAIRMAN JOHN DINGELL OF MICHIGAN ARE GRAPPLING FOR LEGISLATIVE CONTROL OVER DIFFERENT PIECES OF THE PROPOSAL THIS IS NOT THE ARKANSAS STATE LEGISLATURE CHIDES REP FORTNEY STARK D CALIF WHO CHAIRS AN IMPORTANT WAYS AND MEANS HEALTH SUBCOMMITTEE WE'RE NOT ALL DYING TO GO HOME AND PLOW OUR FIELDS AND GO TO WORK AT THE HARDWARE STORE WE'RE READY TO LEGISLATE 9310280011 931028 CLINTON'S HEALTHCARE BILL IS DELIVERED TO CONGRESS PROPOSAL MARKS FULFILLMENT OF A CAMPAIGN PLEDGE START OF A PITCHED BATTLE BY HILARY STOUT AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON AFTER MONTHS OF DELIBERATIONS AND MOUNTING CRITICISM PRESIDENT CLINTON PRESENTED TO CONGRESS A 1336PAGE PROPOSAL TO RESTRUCTURE THE US HEALTH SYSTEM AND GUARANTEE MEDICAL COVERAGE TO ALL AMERICANS ACCOMPANIED BY FIRST LADY HILLARY RODHAM CLINTON WHO OVERSAW THE ADMINISTRATION'S EFFORTS TO DRAFT THE PLAN MR CLINTON CALLED ON CONGRESS TO PASS A COMPREHENSIVE HEALTH BILL BY THE END OF NEXT YEAR TO A LARGE DEGREE HE HAS STAKED HIS PRESIDENCY ON ACHIEVING THIS GOAL THE LEGISLATION IS AN IMPORTANT BUILDING BLOCK IN TRYING TO RESTORE THE KIND OF SELFCONFIDENCE THAT OUR COUNTRY NEEDS TO FACE THE FUTURE TO EMBRACE THE CHANGES OF THE GLOBAL ECONOMY AND TO TURN OUR NATION AROUND MR CLINTON SAID UNDER THE BRONZED GAZE OF SUCH LEGENDARY POPULISTS AS HUEY LONG AND WILLIAM JENNINGS BRYAN IN THE US CAPITOL'S STATUARY HALL THIS IS A TEST FOR ALL OF US HE ADDED A TEST OF WHETHER THE LEADERS OF THIS COUNTRY CAN SERVE THE PEOPLE WHO SENT US HERE AND CAN ACTUALLY TAKE ACTION ON AN ISSUE THAT AS TOUGH AND COMPLEX AS IT IS IS STILL ABSOLUTELY CENTRAL TO MOVING US FORWARD AND IT IS A TEST THAT I BELIEVE WE CAN ALL PASS THE SUBMISSION OF THE BILL MARKS THE FULFILLMENT OF A CAMPAIGN PROMISE ALBEIT SEVERAL MONTHS LATE AND THE START OF WHAT WILL BE ONE OF THE MOST CONTENTIOUS HARDFOUGHT BATTLES IN THE HISTORY OF CONGRESS THE LEGISLATION WHICH WOULD REVAMP ONESEVENTH OF THE US ECONOMY WOULD BRING ABOUT A HUGE EXPANSION IN THE GOVERNMENT'S ROLE IN SOCIETY INDEED SOME LEADING CONGRESSIONAL CONSERVATIVES IMMEDIATELY ATTACKED THE ADMINISTRATION PROPOSAL ON THE GROUND THAT IT WOULD GIVE THE GOVERNMENT TOO MUCH POWER SEN PHIL GRAMM R TEXAS SAID THE PLAN FORCES AMERICANS TO BUY HEALTH CARE THROUGH A GOVERNMENT COLLECTIVE RUN BY BUREAUCRATS IN WASHINGTON DC HOUSE GOP WHIP NEWT GINGRICH OF GEORGIA DECRIED THE PROPOSAL AS A BUREAUCRATIC MONSTROSITY COMBINING GERMAN SOCIALISM AND ITALIAN CORPORATISM NUMEROUS PROVISIONS IN THE PLAN ALREADY HAVE RAISED THE IRE OF VARIOUS SEGMENTS OF THE MEDICAL INDUSTRY AND HAVE PROMPTED THE INTRODUCTION OF ABOUT A HALFDOZEN ALTERNATIVE HEALTH BILLS YOU HAVE NOW COME TO CONGRESS FOR A SECOND OPINION HOUSE REPUBLICAN LEADER ROBERT MICHEL OF ILLINOIS TOLD THE PRESIDENT THE PLAN MR CLINTON PRESENTED STAYS TRUE TO THE BROAD STRATEGY HE SKETCHED ON THE CAMPAIGN TRAIL AND LAID OUT IN MORE DETAIL IN HIS SPEECH TO CONGRESS LAST MONTH BY 1998 IT WOULD GUARANTEE ALL AMERICANS A UNIFORM COMPREHENSIVE PACKAGE OF HEALTH BENEFITS BY REQUIRING ALL EMPLOYERS TO PAY MOST OF THEIR WORKERS' INSURANCE PREMIUMS WHILE OFFERING GOVERNMENT SUBSIDIES TO POOR PEOPLE AND SMALL LOWWAGE BUSINESSES TO INCREASE THE BARGAINING POWER OF CONSUMERS THE PLAN WOULD GROUP ALL BUSINESSES AND INDIVIDUALS INTO LARGE REGIONAL INSURANCE BUYING POOLS CALLED HEALTH ALLIANCES TO NEGOTIATE WITH HEALTH PLANS AND TO ENSURE THAT THE RISE IN MEDICAL PRICES IS STEMMED THE PROPOSAL WOULD PLACE A CEILING ON THE ALLOWABLE ANNUAL INCREASE IN HEALTH INSURANCE PREMIUMS AND CAP THE SPENDING ON MEDICARE AND MEDICAID THE GOVERNMENT HEALTH PROGRAMS FOR THE ELDERLY DISABLED AND POOR IN RECENT WEEKS ADMINISTRATION OFFICIALS HAVE MADE NUMEROUS MODIFICATIONS TO THEIR PROPOSAL TO APPEASE VARIOUS LAWMAKERS AND SPECIAL INTERESTS PARTLY TO QUIET CONCERNS ABOUT THE FINANCING OF THE BILL THEY HAVE DECIDED TO PLACE A LIMIT ON THE TOTAL AMOUNT OF SUBSIDIES THE GOVERNMENT WOULD OFFER THE BILL WHICH WAS DELIVERED BY WHITE HOUSE INTERNS IN VANS TO EVERY OFFICE ON CAPITOL HILL IS ESTIMATED BY THE ADMINISTRATION TO SHRINK THE FEDERAL BUDGET DEFICIT BY 58 BILLION FROM 1995 THROUGH THE YEAR 2000 BUT THAT ESTIMATE IS SCOFFED AT BY MANY CRITICS WHO THINK THE PLAN WON'T GENERATE SAVINGS AS QUICKLY AS THE PRESIDENT CLAIMS ADMINISTRATION OFFICIALS SPENT MUCH OF YESTERDAY EXPLAINING WHY CERTAIN NUMBERS IN THE PLAN HAD CHANGED BETWEEN A SEPTEMBER DRAFT AND THE FINAL LEGISLATIVE PROPOSAL FOR EXAMPLE THE SAVINGS EXPECTED TO BE GENERATED FROM CAPPING MEDICAID SPENDING THROUGH 2000 WERE LOWERED TO 65 BILLION FROM 114 BILLION WHITE HOUSE AIDES SAID THAT REFLECTED PRIMARILY A SLOWER PHASEIN OF THE PLAN ORIGINALLY THEY HAD EXPECTED IT TO BE IN PLACE BY 1997 IN ADDITION THE WHITE HOUSE RAISED ITS ESTIMATES OF THE AVERAGE PREMIUM FOR THE FEDERALLY GUARANTEED BENEFITS PACKAGE TO 4360 A YEAR FOR A TWOPARENT FAMILY WITH CHILDREN FROM 4200 AND TO 1932 FOR AN INDIVIDUAL FROM 1800 THE INCREASE IN THE PREMIUMS OFFICIALS SAID OCCURRED BECAUSE OF HIGHERTHANEXPECTED ADMINISTRATIVE EXPENSES AND BECAUSE THE FINAL PLAN WOULD REQUIRE SOME OLDER HIGHERRISK WORKERS TO JOIN THE REGIONAL INSURANCE POOLS OTHER DETAILS THAT EMERGED THE BILL AS EXPECTED PROPOSES TO INCREASE THE FEDERAL TAX ON A PACK OF CIGARETTES TO 99 CENTS FROM THE CURRENT 24 CENTS EFFECTIVE OCT 1 1995 THE INCREASES ON OTHER FORMS OF TOBACCO ARE MUCH STEEPER ON SNUFF OR SMOKELESS TOBACCO THE TAX ON A 12OUNCE TIN WOULD JUMP 35FOLD TO 964 CENTS FROM THE CURRENT 27 CENTS THE TAX ON CIGARS WOULD RISE TO 3862 CENTS A CIGAR FROM THE CURRENT 01125 CENT THAT COULD HIT ONE IMPORTANT CIGAR CUSTOMER THE PRESIDENT THE ADMINISTRATION STRUCTURED THE TAX INCREASE LARGELY TO DISCOURAGE YOUNG PEOPLE FROM TURNING TO SMOKELESS TOBACCO AS AN ALTERNATIVE TO COSTLIER CIGARETTES OFFICIALS SAID IT ALSO IMPOSED A FIRSTEVER TAX ON TOBACCO SOLD FOR ROLLYOUROWN CIGARETTES FIGURING THAT THE NEW CIGARETTE TAXES COULD OTHERWISE LEAD MORE SMOKERS TO ROLL THEIR OWN THE PLAN WOULD RAISE BY 11 A MONTH THE PREMIUMS THAT MEDICARE BENEFICIARIES PAY FOR COVERAGE OF PHYSICIAN SERVICES AND OTHER NONHOSPITAL COSTS THE MONEY WOULD GO TOWARD FUNDING A NEW BENEFIT FOR PRESCRIPTION DRUGS IN ADDITION WHILE ALL PEOPLE CURRENTLY COVERED BY MEDICARE PAY 25 OF THE COST OF COVERAGE UNDER THE CLINTON PLAN HIGHERINCOME BENEFICIARIES THOSE INDIVIDUALS WHO EARN MORE THAN 100000 A YEAR WILL BE ASKED TO PAY 75 OF THE COST OF COVERAGE TO ASSUAGE PRIVACY CONCERNS THE HEALTH SECURITY CARD THAT ALL AMERICANS WOULD RECEIVE WOULDN'T HOLD SENSITIVE INFORMATION SUCH AS MEDICAL RECORDS IT WILL SIMPLY BE USED TO STREAMLINE THE BILLING PROCESS AND REDUCE MEDICAL PAPERWORK OFFICIALS SAID THE WHITE HOUSE RETRENCHED SLIGHTLY ON ITS EFFORTS TO CUT DOWN ON THE PERCENTAGE OF SPECIALIST DOCTORS BEING PRODUCED EACH YEAR IN ITS DRAFT PROPOSAL LAST MONTH THE ADMINISTRATION SAID IT WANTED 50 OF NEW DOCTORS TO BE TRAINED IN PRIMARY CARE BY THE YEAR 2000 UP FROM THE CURRENT 20 OR SO THE HEALTH BILL WOULD DELAY THAT GOAL UNTIL THE ACADEMIC YEAR 200203 WHILE THE ADMINISTRATION IS RAISING ITS TARGET FOR PRIMARYCARE DOCTORS TO 55 IT ALSO HAS DECIDED TO COUNT OBSTETRICIANS AND GYNECOLOGISTS AS PRIMARYCARE DOCTORS A RECLASSIFICATION THAT WOULD MAKE IT EASIER FOR TEACHING HOSPITALS TO MEET THEIR GOALS THE GUARANTEED BENEFITS PACKAGE WOULD COVER EMERGENCY DENTAL SERVICES FOR ADULTS AND BEGIN COVERING PREVENTIVE ADULT DENTAL CARE BY 2000 INITIALLY THE WHITE HOUSE INTENDED TO OFFER NO ADULT DENTAL COVERAGE IN THE EARLY YEARS DENTAL COVERAGE FOR CHILDREN STILL BEGINS RIGHT AWAY IN HIS ADDRESS AT THE CAPITOL MR CLINTON MENTIONED REDUCING PAPERWORK CRACKING DOWN ON FRAUD AND ENSURING THE FREEDOM TO CHOOSE A DOCTOR BUT HE WAS MOST FORCEFUL IN LAYING OUT A GRAND VISION OF A HEALTH SYSTEM A UNIQUELY AMERICAN SOLUTION IN WHICH NO ONE WOULD EVER LOSE HIS OR HER COVERAGE IT MEANS IF YOU LOSE YOUR JOB YOU'RE COVERED THE PRESIDENT ASSERTED IF YOU MOVE YOU'RE COVERED IF YOU LEAVE YOUR JOB TO START A SMALL BUSINESS YOU'RE COVERED IT MEANS IF YOU OR A MEMBER OF YOUR FAMILY GETS SICK YOU'RE COVERED EVEN IF IT'S A LIFETHREATENING ILLNESS WHILE THE PRESIDENT TOOK CENTER STAGE MUCH OF THE ATTENTION WAS FOCUSED ON THE FIRST LADY WHO NOT ONLY ADDRESSED THE GATHERING AT THE CAPITOL BUT WROTE THE INTRODUCTION TO A BOOK OUTLINING THE ADMINISTRATION'S HEALTH PLAN YESTERDAY WAS REMARKABLE BECAUSE OF THE ROLE NOT ONLY OF THE PRESIDENT BUT OF THE FIRST LADY SAID HOUSE SPEAKER THOMAS FOLEY A WASHINGTON DEMOCRAT SHE IS IN SO MANY WAYS THE AUTHOR OF THIS PLAN THE COMING PERIOD WILL BE AN OPPORTUNITY FOR ALL OF US TO WORK TOGETHER MRS CLINTON SAID TO GO BEYOND POLITICS AS USUAL TO MAKE IT CLEAR TO THE AMERICAN PEOPLE THAT THIS PRESIDENT AND THIS CONGRESS HEAR THEM AND ARE COMMITTED TO SOLVING THEIR PROBLEMS IN A VERY REAL WAY DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9310280010 931028 WHO'S NEWS APPLE BANCORP INC APPLE BANCORP INC NEW YORK ALAN SHAMOON 42 YEARS OLD WILL ASSUME THE POSITIONS OF PRESIDENT AND CHIEF OPERATING OFFICER SUCCEEDING EDWARD J BROWN 61 WHO WILL RETIRE DEC 1 MR SHAMOON WILL CONTINUE TO SERVE AS TREASURER OF THIS 4 BILLION BANKHOLDING COMPANY AND CHIEF FINANCIAL OFFICER OF THE APPLE BANK FOR SAVINGS UNIT 9310280008 931028 KAMAN CONTRACT IS CANCELED BLOOMFIELD CONN KAMAN CORP SAID THAT A NAVY CONTRACT IN WHICH IT WAS A SUBCONTRACTOR WAS CANCELED IT WAS EXPECTED TO YIELD REVENUE OF ABOUT 20 MILLION OVER TWO TO FOUR YEARS A SPOKESMAN SAID THE SUBCONTRACT UNDER A CONTRACT TO BOEING CO WAS FOR REWINGING THE A6 AIRCRAFT KAMAN A MAKER OF DEFENSE AND COMMERCIAL PRODUCTS WAS BUILDING FLAPS AND SLATS FOR THE AIRCRAFT 9310280007 931028 IPALCO DROPS EFFORT TO BLOCK PSI BID FOR CINCINNATI GAS BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL INDIANAPOLIS IPALCO ENTERPRISES INC WHICH RECENTLY SIGNALED ITS WILLINGNESS TO MAKE FURTHER EFFORTS TO THWART PSI RESOURCES INC'S PLAN TO MERGE WITH CINCINNATI GAS & ELECTRIC CO AGREED TO DROP ITS OPPOSITION TO THE MERGER IPALCO AND THE TWO OTHER UTILITIES DISCLOSED LAST NIGHT THAT THEY HAD REACHED AN AGREEMENT UNDER WHICH IPALCO WHICH EARLIER THIS YEAR MADE AN UNSUCCESSFUL HOSTILE BID FOR PSI WOULD STOP TRYING TO DERAIL THE MERGER AS PART OF THE PACT THE COMPANIES DROPPED THE SUITS AND COUNTERSUITS FILED WHEN IPALCO WAS ACTIVELY PURSUING PSI AND THE THREE COMPANIES GRANTED EACH OTHER TRANSMISSION ACCESS RIGHTS UNDER CERTAIN CIRCUMSTANCES TO ALLOW CROSSTERRITORY LINKS WITH OTHER UTILITIES THE IMPLICATIONS OF THOSE RIGHTS ARE MOST SIGNIFICANT FOR IPALCO WITH A SERVICE TERRITORY ENTIRELY SURROUNDED BY PSI'S REALM OBSERVERS HAD OFTEN NOTED THAT AS THE HOLE IN THE DOUGHNUT TO PSI'S TURF IPALCO STOOD TO BE BARRED FROM FORGING A COMBINATION WITH ANOTHER UTILITY AS THE INDUSTRY'S CONSOLIDATION CONTINUES UNLESS IT LINKED UP WITH PSI FIRST ALTHOUGH WE HAVE NO TRANSACTION IN MIND SAID IPALCO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOHN R HODOWAL THE TRANSMISSION ACCESS RIGHTS THAT WE ARE ENTITLED TO UNDER THE AGREEMENT WILL AID US TREMENDOUSLY IF WE EVER DECIDE TO PURSUE A COMBINATION WITH ANOTHER COMPANY IN ADDITION PSI GRANTED IPALCO AN OPTION TO ACQUIRE UP TO 100 MEGAWATTS OF POWER FOR EACH MONTH IN 1996 AND UP TO 250 MEGAWATTS FOR EACH MONTH IN THE YEARS 1997 THROUGH 2000 MR HODOWAL CALLED THAT PURCHASE OPTION ANOTHER VALUABLE PROVISION THAT WILL GIVE US IMMEDIATE VALUE AND SIGNIFICANT FLEXIBILITY AS WE MAKE OUR POWER SUPPLY ARRANGEMENTS FOR THE LATE 1990S NEARLY A YEAR AGO PLAINFIELD INDBASED PSI DISCLOSED PLANS TO MERGE WITH THE CINCINNATI UTILITY HOLDING COMPANY TO FORM A COMPANY KNOWN AS CINERGY BUT IPALCO THEN LAUNCHED A RIVAL 173 BILLION BID FOR PSI AT A PSI SHAREHOLDER MEETING LAST AUGUST HOWEVER IPALCO'S FIGHT TO ELECT ITS NOMINEES TO PSI'S BOARD FELL SHORT AND THE HOSTILE SUITOR WITHDREW ITS BID 9310280006 931028 ESKIMO PIE PLANS ACQUISITION RICHMOND VA ESKIMO PIE CORP SAID IT ENTERED INTO A NONBINDING LETTER OF INTENT TO ACQUIRE AN UNIDENTIFIED CLOSELY HELD MAKER OF FROZEN DAIRYDESSERT PRODUCTS THAT HAS PROJECTED 1993 SALES OF ABOUT 10 MILLION ESKIMO PIE IS A MAJOR MARKETER OF FROZEN DESSERTS PRODUCED BY A NETWORK OF LICENSED MANUFACTURERS DAVID V CLARK ESKIMO PIE PRESIDENT SAID THE PROPOSED TRANSACTION WOULD GIVE THE COMPANY A NICHE NOT CURRENTLY SERVED BY OUR LICENSEES PROPOSED TERMS WEREN'T DISCLOSED IN THE FIRST NINE MONTHS OF THE YEAR ESKIMO PIE HAD SALES OF 55 MILLION 9310280005 931028 REVIEW & OUTLOOK EDITORIAL ASIDES NEW BESTSELLER THE ASSOCIATED PRESS REPORTS COPIES OF PRESIDENT CLINTON'S HEALTH SECURITY PLAN WENT ON SALE AT NOON TODAY THE PLAN HAS 1342 PAGES AND SELLS FOR 45 A COPY IT'S OVER FOUR INCHES THICK WEIGHS 5 3/4 POUNDS AND IS PRINTED ON 8BY10INCH PAGES ACCORDING TO CARLYN CROUT MANAGER OF MEDIA RELATIONS AT THE GOVERNMENT PRINTING OFFICE THE BOOK MAY BE ORDERED BY CALLING 2027833238 AND USING MASTER CARD OR VISA FOR ANOTHER 850 THE GPO WILL HAVE IT DELIVERED BY FEDERAL EXPRESS 9310280004 931028 REVIEW & OUTLOOK EDITORIAL MR CLINTON LEADS OTHER THAN THIS EDITORIAL PRESIDENT CLINTON IS GETTING NO SUPPORT OR PRAISE FOR A REMARKABLE ACT OF FOREIGNPOLICY LEADERSHIP ON NAFTA LAST WEEK HE TOLD GOP REP PETER KING OF NEW YORK THAT HE WOULD PERSONALLY REPUDIATE EFFORTS BY DEMOCRATIC CANDIDATES TO ATTACK HOUSE MEMBERS WHO VOTE IN FAVOR OF NAFTA PRETTY IMPRESSIVE THE PRESIDENTIAL PLEDGE CAME DURING A MEETING WITH A DOZEN HOUSE MEMBERS REP KING SAYS HE TOLD THE PRESIDENT HE WAS FOR FREE TRADE BUT WORRIED ABOUT A DEMOCRAT USING THE ISSUE AGAINST HIM IN HIS MARGINAL LONG ISLAND DISTRICT THE PRESIDENT BECAME VERY EMOTIONAL AND EVEN BANGED HIS FIST ON THE TABLE REP KING TOLD US HE SAID I WILL REPUDIATE ANYONE IN MY PARTY WHO DOES THAT I WILL COME TO YOUR DISTRICT AND DO IT' VICE PRESIDENT GORE THEN EMPHATICALLY AGREED WITH THE PRESIDENT AFTER THE MEETING REP KING SAYS MR CLINTON CAME UP TO HIM PUT HIS ARM ON HIS AND TOLD HIM I MEANT EVERY WORD I SAID MR CLINTON'S STATEMENT COULD REPRESENT A TURNING POINT IN THE NAFTA DEBATE MEMBERS OF BOTH PARTIES ARE WORRIED ABOUT EVERYONE FROM ROSS PEROT TO PAT BUCHANAN DEMAGOGING THE NAFTA ISSUE IN NEXT YEAR'S ELECTIONS HISTORY SHOWS THAT PROMOTING PROTECTIONISM IS A POLITICAL LOSER BUT MR CLINTON'S ASSURANCE THAT HE'LL TRY TO DEFUSE TRADE AS A POLITICAL WEAPON WILL HELP PERSUADE WAVERING MEMBERS REP VIC FAZIO QUARTERBACK OF THE DEMOCRATIC HOUSE CAMPAIGN STRATEGY IN 1994 IS SAID TO BE LIVID ABOUT THE PRESIDENT'S COMMITMENT OTHER DEMOCRATIC LEADERS HAVE NO COMMENT PERHAPS THEY REALIZE THE MOMENTUM IS SHIFTING IN FAVOR OF NAFTA YESTERDAY REP ESTEBAN TORRES A PROMINENT MEMBER OF THE HISPANIC CAUCUS SWITCHED HIS POSITION AND ANNOUNCED HE WOULD VOTE FOR NAFTA HE INDICATED FOUR OF HIS HISPANIC COLLEAGUES MAY FOLLOW HIM SOON MR CLINTON ISN'T THE FIRST DEMOCRATIC PRESIDENT TO STARE DOWN SHORTSIGHTED MEMBERS OF HIS PARTY IN 1962 JOHN KENNEDY FACED STIFF OPPOSITION TO HIS PROPOSAL TO NEGOTIATE LOWER TARIFFS OVER HALF OF HOUSE REPUBLICANS THEN THE MORE PROTECTIONIST PARTY VOTED AGAINST FREE TRADE THE LATE GOP REP WILLIAM MAILLIARD ONCE TOLD US THAT PRESIDENT KENNEDY ASSURED REPUBLICANS WHO BACKED HIM THAT HE WOULDN'T CAMPAIGN FOR DEMOCRATS WHO MADE THE TRADE VOTE A MAIN ISSUE REP KING SAYS DEMOCRATS THE PARTY OF PROTECTIONISM WILL STILL FIRE HARD AT HIM NEXT YEAR NONETHELESS HE'S RELIEVED THAT PRESIDENT CLINTON IS ON RECORD SAYING HE WON'T ALLOW THE LONGTERM FOREIGN POLICY INTERESTS OF THE US TO BE HELD HOSTAGE TO DEMAGOGUERY FROM THE RIGHT OR THE LEFT