TULSA OKLA AAON INC SAID IT ENTERED INTO AN AGREEMENT WITH TARGET STORES A DIVISION OF DAYTON HUDSON CORP TO SUPPLY TARGET'S HEATING AND AIRCONDITIONING EQUIPMENT NEEDS NEXT YEAR AT THE END OF THIS YEAR TARGET WILL HAVE 554 STORES AAON SAID THE AGREEMENT SHOULD BOOST ITS SALES FOR 1994 THE COMPANY HAD SALES OF 37 MILLION IN 1992 AND EARNINGS OF 16 MILLION OR SEVEN CENTS A SHARE 9310280002 931028 CLEAR CHANNEL COMMUNICATIONS SAN ANTONIO CLEAR CHANNEL COMMUNICATIONS INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE CLOSELY HELD METROPLEX COMMUNICATIONS INC FOR STOCK AND ASSUMPTION OF DEBT METROPLEX BASED IN CLEVELAND OWNS SEVEN RADIO STATIONS IN FOUR MARKETS THE MERGER IS SUBJECT TO A DEFINITIVE AGREEMENT AND FEDERAL REGULATORY APPROVAL 9310280001 931028 WHO'S NEWS DETROIT DIESEL CORP DETROIT DIESEL CORP DETROIT HELMUT WERNER AND BERND GOTTSCHALK WERE NAMED DIRECTORS OF THIS DIESEL ENGINE MAKER INCREASING THE BOARD TO EIGHT BOTH OF THE NEW DIRECTORS ARE MERCEDESBENZ AG EXECUTIVES AND WERE NOMINATED IN CONNECTION WITH DAIMLERBENZ AG'S 113 OWNERSHIP OF DETROIT DIESEL MR WERNER 57 IS THE CHAIRMAN AND CHIEF EXECUTIVE OF MERCEDESBENZ AND A MEMBER OF THE BOARD OF THE DAIMLERBENZ PARENT DR GOTTSCHALK 50 LEADS THE COMMERCIAL VEHICLE DIVISION OF MERCEDESBENZ AND IS A MEMBER OF THE COMPANY'S BOARD OF MANAGEMENT 9310280092 930923 POLITICS & PEOPLE AMERICANS' ARDOR FOR THE TAX ISSUE COOLS BY ALBERT R HUNT A FLORIDIAN HIT BILL CLINTON A FEW WEEKS AGO WITH THE SALLY LAUNCHED BY POPULIST TALK SHOW HOST RUSH LIMBAUGH AND ADOPTED AS THE ECONOMIC MOTTO OF MANY CAPITOL REPUBLICANS NAME ONE COUNTRY THAT HAS TAXED AND SPENT ITS WAY INTO PROSPERITY THE PRESIDENT MISSED THE EASY ANSWER THE UNITED STATES OF AMERICA BETWEEN THE END OF WORLD WAR II AND THE VIETNAM WAR THE US BECAME THE MOST PROSPEROUS COUNTRY IN THE HISTORY OF THE WORLD FROM 1947 TO 1967 THE GROSS DOMESTIC PRODUCT MORE THAN DOUBLED WITH REAL ECONOMIC GROWTH AVERAGING ALMOST 4 ANNUALLY DURING THAT TIME GOVERNMENT SPENDING AND TAXES AS A PERCENTAGE OF GDP CLIMBED SUBSTANTIALLY THE ANTITAX REPUBLICANS MIGHT DISMISS THIS AS A SPECIAL TIME IN HISTORY BUT THEIR MORE REAL POLITICAL PROBLEM IS CONTEMPORARY A SHORT SIX WEEKS AGO MANY OF THESE REPUBLICANS SAW THE TAX ISSUE WITH THE ATTENDANT ALLEGATIONS ABOUT BIGTAXING DEMOCRATS AND AN OVERTAXED MIDDLE CLASS AS THEIR MEAL TICKET BACK TO POLITICAL PROSPERITY BILL CLINTON WAS JIMMY CARTER AND IT WAS DEJA VU ALL OVER AGAIN BUT CONVERSATIONS AFTER THE AUGUST CONGRESSIONAL RECESS WITH A DOZEN LAWMAKERS MOSTLY NERVOUS DEMOCRATS AND A FEW REPUBLICANS TOO REVEAL THAT IT ISN'T CUTTING ANY MORE BY LABOR DAY THE BITTER TAX FIGHT OF THIS SUMMER WAS A DISTANT MEMORY VOTERS WERE FOCUSED ON THE FUTURE ISSUES OF HEALTH CARE AND JOBS NOWHERE WAS THIS MORE DRAMATIC THAN IN THE UPSCALE SUBURBAN PHILADELPHIA DISTRICT OF FRESHMAN DEMOCRAT MARJORIE MARGOLIES MEZVINSKY SHE CAST THE DECIDING VOTE TO PASS THE CLINTON BUDGET WITH THE MAJOR TAX INCREASES AS JEERING REPUBLICANS WAVED GOODBYE MARJORIE SHE GOT AN EARFUL THOSE FIRST FEW WEEKS OF THE RECESS AND STILL IS AN ENDANGERED SPECIES IN A HEAVILY GOP DISTRICT BUT THE TONE AND SUBSTANCE OF WHAT SHE WAS HEARING CLEARLY CHANGED THE ANGER OVER TAXES HAD A SURPRISINGLY SHORT SHELF LIFE SHE SAYS NOW PEOPLE WANT TO FOCUS ON HEALTH CARE AND SPENDING ON ENTITLEMENTS FLORIDA REP JIM BACCHUS ALSO FROM A HEAVILY GOP DISTRICT HAD THE SAME EXPERIENCE THERE WAS ORGANIZED OPPOSITION ON TAXES FROM THE FAR RIGHT BUT VERY LITTLE FROM THE MAINSTREAM OF MY DISTRICT AT A RECENT MEETING WITH SUPPORTERS OF ROSS PEROT WHO GOT 26 OF THE VOTE IN THE CAPE CANAVERAL DISTRICT THE TAX ISSUE WASN'T EVEN MENTIONED THERE IS MORE THAN ANECDOTAL EVIDENCE OF THIS SHIFT THE CENTRAL REPUBLICAN THEME THIS SUMMER WAS THAT THE BUDGET BATTLE DEMONSTRATED THAT BILL CLINTON IS MERELY A REPACKAGED TAXANDSPEND DEMOCRAT YET IN THIS MONTH'S WALL STREET JOURNAL/NBC NEWS POLL THE PUBLIC BY A DECISIVE 54 TO 37 REJECTS THAT NOTION A REVERSAL FROM ONLY THREE MONTHS AGO AND TAXES RANK LOW AS A CONCERN TO VOTERS THERE IS A MAJOR TEST OF THE TAX ISSUE THE EFFORT TO REPEAL THE RETROACTIVE PORTION OF THIS YEAR'S INDIVIDUAL TAX INCREASES A MOVE THAT HAD A FULL HEAD OF STEAM A MONTH AGO NOW SEVERAL LEADING CAPITOL HILL REPUBLICANS PRIVATELY SAY THAT SINCE THE AUGUST RECESS THE ARDOR FOR THIS MEASURE HAS COOLED CONSIDERABLY WHATEVER THE MERITS OF REPEALING THE RETROACTIVE TO THIS JAN 1 TAX HIKE THE POLITICS NOW SEEM DICIER SUPPORTERS WOULD HAVE TO MAKE UP THE 105 BILLION OF LOST REVENUE WITH OFFSETTING CUTS SINCE THIS TAX INCREASE ALMOST EXCLUSIVELY HITS UPPERINCOME TAXPAYERS THE 12 OF TAXPAYERS MAKING MORE THAN 180000 A YEAR ANY PROPOSAL ALMOST INEVITABLY WOULD TAKE FROM THE MIDDLE CLASS TO GIVE TO THE AFFLUENT THAT'S WHY HOUSE DEMOCRATIC LEADERS RELISH ANY GOP EFFORT TO RAISE THIS ISSUE INDEED SOME DEMOCRATS SUPPORTED REPEALING RETROACTIVITY PROMINENT AMONG THEM WAS CALIFORNIA SEN DIANNE FEINSTEIN WHO FACES AN EXPENSIVE REELECTION NEXT YEAR RAISING THE QUESTION OF WHETHER THIS WAS LESS ABOUT HIGH TAXES AND FAIRNESS THAN ABOUT WELLHEELED CAMPAIGN CONTRIBUTORS TODAY HOWEVER SEN FEINSTEIN SAYS SHE'S NO LONGER OPTIMISTIC ABOUT REPEAL CITING BOTH THE FACT THAT REVENUE MEASURES ARE SUPPOSED TO ORIGINATE IN THE HOUSE AND THE DIFFICULTY OF FINDING OFFSETTING CUTS OVERALL THE EFFECTS OF THIS YEAR'S TAX INCREASES REALLY HAVE BEEN EXAGGERATED BY BOTH SIDES LIBERALS INFLATE THE REVENUE THAT'LL BE RAISED BY REFUSING TO CONCEDE THAT THE UPPERINCOME TAXPAYERS SOME 81 OF THE OVERALL HIGHER TAXES WILL FALL ON FAMILIES MAKING MORE THAN 200000 A YEAR WILL RATHER EASILY FIND WAYS TO SHIFT INCOME PATTERNS AND AVOID SOME OF THE HIGHER LEVIES THE CONSERVATIVES EXAGGERATE WHEN THEY PROTEST IT'LL BE A DRAG ON THE ECONOMY AS TAX INCREASES ARE BOUND TO THWART ANY ECONOMIC RECOVERY THEY SEEM TO FORGET THAT ONE OF THE PREDECESSOR LARGEST TAX INCREASES IN HISTORY WAS THE 1982 HIKE ENACTED UNDER RONALD REAGAN THE ECONOMY BOOMED IN THE NEXT SEVERAL YEARS SIMILARLY FLAWED IS THE ARGUMENT THAT THESE HIGHER TAXES WILL HURT THE ABILITY OF THE US TO COMPETE IN THE GLOBAL ECONOMY ALL TAXES IN THE US STILL ARE ONLY ABOUT 30 OF THE GROSS DOMESTIC PRODUCT ACCORDING TO THE ORGANIZATION OF ECONOMIC COOPERATION AND DEVELOPMENT THIS SHARE IS LOWER THAN THAT OF ALMOST EVERY MAJOR INDUSTRIAL DEMOCRACY IN THE WORLD SEE TABLE MOREOVER FEDERAL TAXES NOW EQUAL ABOUT 186 OF GDP ALMOST EXACTLY THE SAME LEVEL AS TWO DECADES AGO THIS DOESN'T SUGGEST FOR A MOMENT THAT THERE'S A CLAMOR FOR NEW TAXES EXCEPT IN SPECIAL CASES AS PART OF HEALTHCARE REFORM 72 OF THE PUBLIC SUPPORTS A HUGE HIKE IN CIGARETTE TAXES THE TAX ISSUE STILL HAUNTS SOME POLITICIANS SUCH AS NEW JERSEY GOV JAMES FLORIO AND COULD EVEN HURT A FEW CONGRESSIONAL INCUMBENTS NEXT YEAR BUT THERE'S ALSO INCREASING DEMAND FOR SOME NEW GOVERNMENT SERVICES AS WELL AS FOR LESS DEBT AND NO LONGER DOES AN ANTITAX MESSAGE AUTOMATICALLY RESONATE THUS THE KNEEJERK REPUBLICAN ANTITAXERS ARE LOSING OUT IN THE REAL TAX DEBATE THE SHAPE NOT THE LEVEL OF TAXATION WITH AMERICA'S NEED TO CREATE MORE HIGHPAYING JOBS IN A GLOBAL ECONOMY PAYROLL TAXES ARE COUNTERPRODUCTIVE WE PROBABLY SHOULD ADOPT MORE CONSUMPTION TAXES WHETHER VALUEADDED TAXES OR REAL ENERGY TAXES TO REPLACE SOME PAYROLL TAXES SOME SERIOUS LIBERALS LIKE BILL BRADLEY ARE TALKING WITH SERIOUS CENTRISTS LIKE FORMER SENS WARREN RUDMAN AND PAUL TSONGAS ABOUT EXACTLY THIS MEANWHILE THE REPUBLICAN ANTITAXERS LOOK LIKE THEIR POLITICAL COUNTERPARTS OF THE LEFT WHO FOR YEARS FUTILELY TRIED TO RECAPTURE THE SALAD DAYS OF THE 1960S AFTER THEY WERE LONG GONE FOR THE GOP IT'S NOT 1978 THE CALENDAR AND THE COUNTRY HAVE MOVED ON TAX BURDEN OF SELECTED INDUSTRIAL DEMOCRACIES IN 1991 NOTE ALL TAXES AS A PERCENTAGE OF THAT COUNTRY'S GROSS DOMESTIC PRODUCT INCLUDING FEDERAL STATE LOCAL PAYROLL AND SALES TAXES SEE RELATED LETTER LETTERS TO THE EDITOR BELTWAY JOURNALISTS BECOME CHEERLEADERS WSJ OCT 1 1993 9309230066 YY93 MM10 SEE RELATED LETTER LETTERS TO THE EDITOR TAX RATE CUTS SPURRED GROWTH 1947 TO 1967 WSJ OCT 28 1993 9310010077 YY93 MM10 9310270188 931027 REVIEW & OUTLOOK EDITORIAL ALIEN IDEA INVADES NEW YORK NEW YORK CITY VOTERS ARE GLUM A CITY OF EIGHT MILLION HOME TO THE COUNTRY'S LEADING FINANCIAL AND CULTURAL INSTITUTIONS IT CAN PRODUCE NO BETTER MAYORAL CHOICE THAN DAVID DINKINS AND RUDOLPH GIULIANI IT IS ARGUABLY THE MOST STATIST LARGE CITY IN THE UNITED STATES ITS GOVERNMENT IS DOMINATED BY PERPETUALLY AGGRIEVED SPECIAL INTERESTS AND SUPERLOBBYISTS WHO TOGETHER SKIM THE CREAM FROM THE TOP OF THE CITY'S BUSTED BUDGET THE CITY COUNCIL IS PACKED WITH PROFESSIONAL POLS WHO SPEND ENDLESS HOURS DEBATING STREETNAME CHANGES SUDDENLY THOUGH NEW YORKERS FIND THEMSELVES WITH A POCKET FULL OF ONE MIRACLE NEXT WEEK THEY WILL GET TO VOTE ON EIGHTYEAR TERM LIMITS FOR ALL CITY OFFICIALS THAT'S RIGHT TERM LIMITS HAVE ARRIVED AT THE BIG OVERRIPE APPLE IT'S BEEN 25 YEARS SINCE THE LAST VOTERINITIATED REFERENDUM OVERCAME THE CITY'S BYZANTINE ELECTION LAWS AFTER FOUR MONTHS OF LEGAL ROADBLOCKS THROWN UP BY THE CITY COUNCIL NEW YORK STATE'S HIGHEST COURT LAST WEEK UNANIMOUSLY ORDERED TERM LIMITS ON THE BALLOT THE TERM LIMITS' SPONSOR IS RON LAUDER A FORMER CONSERVATIVE PARTY MAYORAL CANDIDATE HE HELD A NEWS CONFERENCE ON THE STEPS OF CITY HALL AND THE 30 OR SO JOURNALISTS WHO SHOWED UP WOULD HAVE GIVEN MAFIA DON JOHN GOTTI BETTER TREATMENT EVERY QUESTION FROM THE ISLAND'S PRESS IMPLIED HOSTILITY TO THE NOTION OF TERM LIMITS INQUIRIES ABOUT MR LAUDER'S DEEPPOCKET FINANCING OF THE INITIATIVE WERE REPEATED ENDLESSLY CITY COUNCILMAN ANTONIO PAGAN WHISPERED SUGGESTED QUESTIONS INTO THE EAR OF ONE REPORTER AFTER MR LAUDER FINISHED CITY COUNCIL SPEAKER PETER VALLONE CAME FORWARD AND THE ATTACKDOG REPORTERS TURNED INTO PUPPIES MR VALLONE WAS FREQUENTLY INVITED TO ATTACK MR LAUDER AND HIS RIGHTWING EFFORT PETER A REPORTER IMPLORED HOW ARE YOU GOING TO STOP THIS AFTER A DOZEN SUCH SOFTBALLS A WRITER FROM THIS PAGE TRIED A QUESTION REGARDLESS OF YOUR OPPOSITION TO TERM LIMITS DO YOU FEEL THE VOTERS HAVE A RIGHT TO VOTE ON THIS ISSUE AND IF SO WHY DID YOU TRY TO BLOCK IT MR VALLONE IN OFFICE NOW FOR 19 YEARS AND UNOPPOSED FOR REELECTION IN HIS OWN DISTRICT ACTED AS IF AN ALIEN HAD APPEARED ARE YOU SOME KIND OF PAID WORKER FOR RON LAUDER WHO ARE YOU INFORMED HE GRUNTED AND SAID THAT HE DIDN'T THINK TERM LIMITS WERE A PROPER ISSUE FOR THE VOTERS TO DECIDE AFTER THE SPEAKER LEFT THE ALIEN WAS APPROACHED BY OTHER VILLAGERS A REPORTER FROM A MAJOR DAILY AGAIN ASKED IF OUR WRITER WORKED FOR RON LAUDER A VALLONE PRESS AIDE LATER TRIED TO EXPLAIN THE LOCALS' MORES YOU WEREN'T ONE OF THE PRESS CORPS REGULARS SHE SAID HE DIDN'T RECOGNIZE YOU AND HE WANTED TO MAKE SURE YOU BELONGED THERE NEW YORK'S HORRIFIED ESTABLISHMENT IS STILL SCREAMING THROUGH THE STREETS AT THE PROSPECT OF TERM LIMITS COUNCILWOMAN KATHRYN FREED THINKS THE TERMLIMITS GODZILLA WILL DESTROY NEW YORK CITY'S GOVERNMENT THE LOCAL CLAN ELDERS THE CHAMBER OF COMMERCE COMMON CAUSE AND THE NEW YORK TIMES HAVE HARRUMPHED THEIR OPPOSITION MINORITY POLITICIANS ENTRENCHED AT CITY HALL WAIL THAT THEY'LL BE FORCED OUT THOUGH OF COURSE THEIR DEPARTURE WOULD GIVE OTHER PROBABLY BETTER MINORITY CANDIDATES RARE ACCESS TO THE LEVERS OF POWER AS IN ANOTHER PREGLASNOST ERA NEW YORK HARBORS DISSIDENTS SUPPORTING TERM LIMITS ARE GAIL COLLINS A NEWSDAY COLUMNIST WHO'S COUNTING THE DAYS TILL SHE'S LIBERATED FROM BROOKLYN BOROUGH PRESIDENT HOWARD GOLDEN AND THE FORWARD A JEWISH WEEKLY THAT HOPES FOR AN END TO THE CITY'S DESTRUCTIVE CRONYISM MOUNTING THE RAMPARTS SPEAKER VALLONE IS TURNING OUT AN ARMY OF POLITICAL HACKS TO FIGHT TERM LIMITS CITY WORKERS HAVE PASSED OUT ANTITERM LIMIT FLYERS AT WELFARE OFFICES ONE AGHAST INCUMBENT ON THE CITY COUNCIL PUT THE STAKES TO US BLUNTLY CANDIDATES WE DON'T LIKE THEY COME AND GO BUT THIS LAW IS FOREVER TO PARAPHRASE A FAMOUS LOCAL SONG IF TERM LIMITS CAN MAKE IT HERE THEY CAN MAKE IT ANYWHERE 9310270187 931027 ENTERPRISE BY EUGENE CARLSON WASHINGTON LAWYERS ARE GIVING FREE ADVICE TO HIGHTECH STARTUPS IN A NEW TWIST TO THE OLD PRO BONO PUBLICO CONCEPT ATTORNEYS VERSED IN COMPUTER LAW HAVE COUNSELED NEARLY THREE DOZEN SMALL OR MINORITYOWNED FIRMS IN THE WASHINGTON DC AREA THAT HAVE A CONNECTION EVEN A TENUOUS ONE WITH THE COMPUTER INDUSTRY WHILE THE LEGAL PROFESSION HAS A LONG HISTORY OF PERFORMING FREE LEGAL WORK FOR THE PUBLIC THE RECIPIENTS HAVE TRADITIONALLY BEEN POOR PEOPLE OR PUBLICINTEREST GROUPS PRO BONO WORK FOR BUSINESS IS VERY UNUSUAL SAYS JOAN VERMEULEN EXECUTIVE DIRECTOR OF NEW YORK LAWYERS FOR THE PUBLIC INTEREST BUT SHE LIKES THE IDEA FIRMS OWNED BY WOMEN AND MINORITYGROUP MEMBERS ARE OFTEN NOT ABLE TO COMPETE FOR FEDERAL STATE AND CITY CONTRACTS BECAUSE THEY'RE JUST NOT EXPERIENCED ENOUGH SHE SAYS THIS IS PROBABLY AN AREA WE SHOULD BE GRAPPLING WITH ONE BENEFICIARY OF THE DISTRICT OF COLUMBIA BAR'S NEW PROGRAM IS WILL DENTZLER PRESIDENT OF ONEYEAROLD NEWBASE HERNDON VA MR DENTZLER SAYS HE WORRIED ABOUT PROTECTING THE CONFIDENTIALITY OF A SOFTWARE PRODUCT HE HAD DEVELOPED WHILE IT WAS BEING TESTED BY OUTSIDERS HE SAYS HE GOT MORE THAN THREE HOURS OF GRATIS ADVICE ON COPYRIGHT AND TRADEMARK LAW FROM JAY WESTERMEIER A PARTNER IN THE WASHINGTON OFFICE OF FENWICK & WEST A PALO ALTO CALIF FIRM THAT SPECIALIZES IN COMPUTERINDUSTRY LAW MR WESTERMEIER SAYS THE BAR GROUP HOPES TO CULTIVATE NEWCOMERS TO THE LOCAL COMPUTER INDUSTRY BUT IT WILL EXTEND AID TO A SMALL COMPANY THAT SIMPLY NEEDS LEGAL HELP IN BUYING A COMPUTER IF WE CAN GET A FEW OF THESE GUYS VIABLE MAYBE THEY'LL BE MORE COMPETITIVE HE SAYS MR DENTZLER FIGURES THE ADVICE HE GOT WAS WORTH EASILY 1000 AND HE SAYS HE CONTINUES TO CALL MR WESTERMEIER FOR LEGAL HELP IT'S NOT FREE ANYMORE HE ADDS THE GOVERNMENT'S PROMPTPAY POLICY NEEDS STRENGTHENING A SMALLBUSINESS COALITION SAYS CONGRESS TRIED TO FIX THE PROBLEM OF PERENNIALLY LATE PAYMENTS BY GOVERNMENT AGENCIES WITH ITS UNANIMOUS PASSAGE OF THE PROMPT PAYMENT ACT OF 1982 THE LAW REQUIRES AGENCIES TO PAY INTEREST ON BILLS UNPAID AFTER 30 DAYS AMENDMENTS ADDED IN 1988 CLOSED SOME LOOPHOLES EVEN SO THE MEASURE'S WORDING EXCLUDES SOME VENDORS MOREOVER AGENCIES SOMETIMES SIMPLY FLOUT THE LAW AND REFUSE TO PAY ON TIME IT SHOWS A RUNAWAY BUREAUCRACY THAT'S IGNORING ELECTED LEADERS AND DOING WHAT IT PLEASES SAYS COLETTE NELSON EXECUTIVE DIRECTOR OF THE AMERICAN SUBCONTRACTORS ASSOCIATION A TRADE GROUP IN ARLINGTON VA THE WHITE HOUSE OFFICE OF MANAGEMENT AND BUDGET WHICH MONITORS FEDERAL CASH FLOW ESTIMATES THAT 92 OF GOVERNMENT BILLS FOR GOODS AND SERVICES WERE PAID ON TIME IN THE FISCAL YEAR ENDED SEPT 30 1992 THAT STILL LEFT 28 MILLION TARDY PAYMENTS TOTALING 93 BILLION THE OMB SAYS SMALL BUSINESSES GET ABOUT 20 OF THE GOVERNMENT'S PROCUREMENT ORDERS I GET MORE PHONE CALLS ABOUT PROMPT PAY THAN ANYTHING ELSE SAYS MS NELSON IF YOU'RE A SMALL BUSINESS AND YOU DON'T GET PAID IT'S A MATTER OF LIFE AND DEATH TO SPEED THE PROCESS A COALITION OF ABOUT TWO DOZEN SMALLBUSINESS TRADE GROUPS THAT LOBBIED FOR PASSAGE OF THE ORIGINAL PROMPTPAY ACT HAS REGROUPED IN AN ATTEMPT TO STRENGTHEN THE LAW THE COALITION IS SEEKING TO INCREASE PENALTIES AND GET MORE OF THE LAW'S PROVISIONS WRITTEN INTO REGULATIONS IT IS ALSO PUSHING TO BROADEN THE LAW'S REACH TO ALL SUBCONTRACTORS INSTEAD OF JUST CONSTRUCTION SUBCONTRACTORS TO ALL BRANCHES OF GOVERNMENT INSTEAD OF JUST THE EXECUTIVE BRANCH AND TO VENDORS OUTSIDE AS WELL AS INSIDE THE US ONE SMALL SLIPUP CAN COST A SMALL BUSINESS A LOT HANNA ANDERSSON A PORTLAND ORE CATALOG SELLER OF CHILDREN'S CLOTHES LEARNED THAT LESSON HANNA HAS BUILT CUSTOMER LOYALTY BY INVITING CUSTOMERS TO RETURN APPAREL BOUGHT FROM THE FIRM THAT THEIR CHILDREN HAVE OUTGROWN THE CLOTHES ARE DISTRIBUTED TO NEEDY FAMILIES AND CUSTOMERS GET A 20 CREDIT ON FUTURE MAILORDER PURCHASES THE PROMOTION HEAVILY ADVERTISED IN THE FIRM'S FOUR SEASONAL CATALOGS HAS GENERATED 700000 OF CREDITS SINCE 1984 SAYS GUN DENHART CHIEF EXECUTIVE BUT IN AN OVERSIGHT HANNA'S SPRING AND SUMMER CATALOGS THIS YEAR BARELY MENTIONED THE POPULAR RETURNFORCREDIT PROGRAM CALLED HANNADOWNS SALES WHICH HAD BEEN RISING STEADILY DROPPED BY ABOUT 2 MILLION OR 20 BELOW THE COMPANY'S FORECAST FOR THE FIRST SIX MONTHS OF 1993 MS DENHART ATTRIBUTES PART OF THE DECLINE TO THE OVERSIGHT MS DENHART SAYS PROMINENT DISPLAY OF HANNADOWNS WAS OMITTED DURING A MAJOR CATALOG REDESIGN IT HAPPENED SO FAST I DIDN'T REALIZE IT UNTIL IT THE CATALOG WAS OUT SHE SAYS THE SPRING AND SUMMER CATALOGS ARE PRINTED AT THE SAME TIME FAILURE TO GIVE HANNADOWNS BIG PLAY WAS A MISTAKE BECAUSE THE PROGRAM REALLY IDENTIFIED US AS A COMPANY MS DENHART SAYS HANNADOWNS HAS BEEN GIVEN LOTS OF SPACE IN THE FALL AND HOLIDAY CATALOGS AND MS DENHART SAYS WE'VE SEEN A BOUNCEBACK IN SALES EVEN WITH THE GLITCH SHE EXPECTS 1993 SALES OF 44 MILLION UP FROM 40 MILLION IN 1992 MS DENHART SAYS THE ERROR WAS A SOBERING REMINDER THAT FASTGROWING FIRMS SOMETIMES LOSE TRACK OF THE BASICS WE'RE NOT GOING TO MAKE AS MUCH MONEY AS WE PLANNED BUT I THINK WE'VE COME OUT OF IT AS A MUCH STRONGER COMPANY WE'VE SORT OF BEEN SHAKEN BACK TO REALITY RESULTS OF A MEMBERS POLL BY THE SMALL BUSINESS SERVICE BUREAU WORCESTER MASS SHOW THAT 33 OF COMPANY OWNERS REPORTED SALES INCREASES IN THE FIRST HALF OF 1993 COMPARED WITH 30 A YEAR EARLIER CAPITAL CIRCLE A NEW NOTFORPROFIT ORGANIZATION IN WASHINGTON SAYS IT PLANS TO BUILD A NETWORK OF INVESTORS TO FUNNEL CAPITAL TO BUSINESSES OWNED BY WOMEN 9310270186 931027 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 ECKERD CORP 200 MILLION OF SENIOR SUBORDINATED NOTES DUE FEB 15 2004 PRICED AT PAR TO YIELD 925 ACCORDING TO MCM CORPORATEWATCH RATED SINGLEB2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO HOME SAVINGS OF AMERICA 250 MILLION OF SUBORDINATED BANK NOTES DUE NOV 1 2000 PRICED AS 6S AT 99718 TO YIELD 605 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 85 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC HOME SAVINGS IS A UNIT OF HF AHMANSON & CO MARKEL CORP 75 MILLION OF NOTES DUE NOV 1 2003 PRICED AS 725S AT 993 TO YIELD 735 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 194 BASIS POINTS ABOVE TREASURYS RATED BA1 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC NATIONAL BANK OF HUNGARY 200 MILLION OF NOTES DUE NOV 1 2003 PRICED AS 795S AT 99843 TO YIELD 7973 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 255 BASIS POINTS ABOVE TREASURYS RATED BA1 BY MOODY'S AND DOUBLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH JOINT UNDERWRITERS LED BY SALOMON BROTHERS INC NATIONSBANK CORP 400 MILLION OF SENIOR NOTES DUE APRIL 15 2000 PRICED AS 5375S AT 99058 TO YIELD 555 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 58 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE NOTES WERE SOLD THROUGH UNDERWRITERS LED BY NATIONSBANC CAPITAL MARKETS INC NEW YORK TELEPHONE CO 250 MILLION OF DEBENTURES DUE NOV 1 2023 PRICED AS 67S AT 97606 TO YIELD 689 ACCORDING TO MCM CORPORATEWATCH THE OFFERING WAS WON IN COMPETITIVE BIDDING BY SALOMON BROTHERS INC THE DEBENTURES NONCALLABLE FOR 20 YEARS WERE PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P NEW YORK TELEPHONE IS A UNIT OF NYNEX CORP NEW YORK TELEPHONE CO 150 MILLION OF NOTES DUE NOV 1 2003 PRICED AS 5625S AT 98403 TO YIELD 5838 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 43 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE NOTES WERE SOLD THROUGH A COMPETITIVE BID WON BY MORGAN STANLEY & CO UNION PLANTERS CORP 75 MILLION OF SUBORDINATED NOTES DUE NOV 1 2003 PRICED AS 625S AT 99305 TO YIELD 6345CCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 95 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO PAUL REVERE CORP INITIAL OFFERING OF 75 MILLION COMMON SHARES OF THIS INSURANCE UNIT OF TEXTRON INC PRICED AT 25 APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC ALTON ILL 318 MILLION SERIES 1993B HEALTHFACILITIES REVENUE BONDS FOR BARNESJEWISH INC CHRISTIAN HEALTH SERVICES PRICED BY A MERRILL LYNCH & CO GROUP THE BONDS WHICH ARE FOR ALTON MEMORIAL HOSPITAL ARE PRICED TO YIELD FROM 28 IN 1994 TO 563 IN 2021 THEY HAVE BEEN RATED DOUBLEA BY MOODY'S AND DOUBLEAMINUS BY S&P BRAZOS RIVER AUTHORITY SABINE RIVER AUTHORITY TEXAS 1585 MILLION COLLATERALIZED POLLUTIONCONTROL REVENUE REFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP THE SECURITIES ARE FOR THE TEXAS UTILITIES ELECTRIC CO PROJECT INCLUDED IN THE ISSUE ARE 50 MILLION BRAZOS RIVER AUTHORITY BONDS WHICH ARE 55S PRICED TO YIELD 555 ON MAY 1 2022 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P THERE ARE ALSO 75 MILLION SABINE RIVER AUTHORITY BONDS WHICH ARE 555S PRICED TO YIELD 56 ON MAY 1 2022 THESE BONDS ARE INSURED BY FINANCIAL SECURITY ASSURANCE AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P THE SABINE RIVER AUTHORITY'S OTHER 335 MILLION OF BONDS ARE 585S PRICED TO YIELD 5875 ON MAY 1 2022 THEY ARE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P LOS ANGELES 3907 MILLION SERIES 1993D WASTEWATERSYSTEM REVENUE REFUNDING BONDS APPARENTLY WON BY A MORGAN STANLEY & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 535 YIELDS FOR REOFFERED BONDS RANGE FROM 275 IN 1994 TO 475 IN 2003 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P MISSOURI HEALTH AND EDUCATIONAL FACILITIES AUTHORITY 2985 MILLION OF SERIES 1993A HEALTHFACILITIES REVENUE BONDS FOR BARNESJEWISH INC CHRISTIAN HEALTH SERVICES OF ST LOUIS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 27 IN 1994 TO 55 IN 2021 THE BONDS HAVE BEEN RATED DOUBLEA BY MOODY'S AND DOUBLEAMINUS BY S&P MONTGOMERY COUNTY MD 100 MILLION OF UNLIMITED TAX CONSOLIDATED PUBLICIMPROVEMENT BONDS APPARENTLY WON BY A LEHMAN BROTHERS INC GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 4689 THE BONDS ARE RATED TRIPLEA BY BOTH MOODY'S AND S&P OHIO PUBLIC FACILITIES COMMISSION 1783 MILLION HEALTHFACILITIES REVENUE BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP WITH A BID SETTING THE NET INTEREST COST AT 4515 THE BONDS ARE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P PITTSBURGH WATER AND SEWER AUTHORITY 2993 MILLION WATERSYSTEM AND SEWERSYSTEM REVENUE REFUNDING AND NEWMONEY REVENUE BONDS PRICED BY A PAINEWEBBER INC GROUP INCLUDED IN THE ISSUE ARE 2881 MILLION SERIES A OF 1993 REVENUE REFUNDING BONDS WHICH ARE PRICED TO YIELD FROM 34 IN 1995 TO 535 IN 2016 THERE ARE ALSO 111 MILLION NEWMONEY REVENUE BONDS WHICH ARE 5S PRICED TO YIELD 54 ON SEPT 1 2023 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P SOUTH CAROLINA 2899 MILLION OF SERIES 1993B STATECAPITALIMPROVEMENT GENERALOBLIGATION REFUNDING BONDS APPARENTLY WON BY A LEHMAN BROTHERS INC GROUP WITH A BID SETTING THE NET INTEREST COST AT 448017 THE BONDS ARE RATED TRIPLEA BY MOODY'S AND DOUBLEAMINUS BY S&P WISCONSIN 2093 MILLION OF 1993 SERIES 4 1993 SERIES 5 AND 1993 SERIES 6 GENERALOBLIGATION REFUNDING BONDS PRICED BY A BEAR STEARNS & CO GROUP THE 788 MILLION OF SERIES 4 BONDS WHICH ARE FOR CAPITAL IMPROVEMENT HAVE BEEN PRICED TO YIELD FROM 26 IN 1994 TO 48 IN 2006 THE 1105 MILLION SERIES 5 BONDS ARE PRICED TO YIELD FROM 42 IN NOVEMBER 1999 TO 545 IN MAY 2023 THE BONDS ARE FOR VETERANS' HOUSING THE 20 MILLION SERIES 6 BONDS ALSO FOR VETERANS' HOUSING ARE PRICED TO YIELD FROM 27 IN MAY 1994 TO 54 IN NOVEMBER 2016 ALL THE BONDS ARE EXPECTED TO RECEIVE DOUBLEA RATINGS FROM BOTH MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY CS FIRST BOSTON INC THE OFFERING SERIES G025 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7 AND WEIGHTED AVERAGE MATURITY OF 178 MONTHS ZIONS FIRST NATIONAL BANK 1594 MILLION OF CERTIFICATES BACKED BY HOMEREFINANCE LOANS OFFERED BY UNDERWRITERS LED BY BEAR STEARNS & CO THE SECURITIES ARE SOLD THROUGH SPECIALPURPOSE VEHICLE ZIONS HOME REFINANCE LOAN TRUST 19931 AND ARE SUPPORTED BY A 100 FGIC INSURANCE WRAP THE CERTIFICATES WHICH HAVE A LEGAL MATURITY DATE OF SEPT 25 2003 ARE PRICED AS 515S AT 99938 TO YIELD 508 THAT YIELD IS 102 BASIS POINTS OVER INTERPOLATED 25YEAR TREASURYS THE ISSUE HAS AN EXPECTED AVERAGE LIFE OF 25 YEARS ZIONS FIRST NATIONAL IS A UNIT OF ZIONS BANCORP SALT LAKE CITY UTAH BANDAI CO JAPAN 250 MILLION OF 1 EUROBONDS WITH WARRANTS ATTACHED AT ISSUE PRICE PAR DUE NOV 18 1997 VIA DAIWA EUROPE LTD EACH BOND CARRIES ONE WARRANT WHICH RUNS BETWEEN DEC 2 AND NOV 4 1997 TERMS TO BE FIXED NOV 1 FEES 225 BANQUE PARIBAS SA FRANCE 125 MILLION OF COLLARED FLOATINGRATE EURONONTES DUE NOV 29 2005 AT ISSUE AND FIXED REOFFER PRICE 99625 VIA MERRILL LYNCH INTERNATIONAL LTD INTEREST PAID SEMIANNUALLY AND FLOATS AT 25 BASIS POINTS BELOW THE LONDON INTERBANK OFFERED RATE MINIMUM COUPON 5 AND MAXIMUM 8 FEES 05 BSN FRANCE 35 BILLION FRENCH FRANC CONVERTIBLEBOND ISSUE IN TWO TRANCHES DUE JAN 1 2002 CAN BE INCREASED TO FOUR BILLION FRANCS FIRST TRANCHE OF 259 BILLION FRANCS FOR DOMESTIC INVESTORS AND SECOND TRANCHE OF 914 MILLION FRANCS FOR INTERNATIONAL INVESTORS VIA CREDIT LYONNAIS AND LAZARD FRERES ET CIE ISSUE PRICE 1015 FRANCS PER BOND AT A PREMIUM OF 128 OVER OVER COMPANY'S SHARE PRICE MONDAY OF 900 FRANCS INTEREST IS PAID AT 3 AND YIELD TO MATURITY IS 525 CALL OPTION FROM JAN 1 1997 TO JAN 1 2001 COMMERZBANK OVERSEAS FINANCE NV GERMAN PARENT 150 MILLION OF SUBORDINATED COLLARED FLOATINGES DUE NOVEMBER 2005 AT ISSUE AND FIXED REOFFER PRICE PAR VIA KIDDER PEABODY SECURITIES CO INTEREST PAID SEMIANNUALLY AT THE SIXMONTH DOLLAR LIBOR LESS 30 BASIS POINTS SUBJECT TO MINIMUM COUPON 5 AND MAXIMUM 8 GUARANTOR COMMERZBANK AG FEES 05 CORPORACION INDUSTRIAL SANLUIS SA MEXICO 50 MILLION OF 9125 EUROBONDS DUE NOV 16 1998 AT ISSUE AND FIXED REOFFER PRICE 99352 VIA SAMUEL MONTAGU & CO BONDS YIELD A SPREAD OF 450 BASIS POINTS OVER FIVEYEAR US TREASURY FEES ONE INTEREST PAYABLE SEMIANNUALLY DEUTSCHE CENTRALBODEN AG GERMANY 50 MILLION MARKS OF REVERSE FLOATINGRATE EURONONTES DUE NOV 25 2001 AT ISSUE PRICE PAR VIA TRINKAUS & BURKHARDT KGAA FOR FIRST 11 MONTHS BONDS CARRY FIXED COUPON OF 625 AND THEREAFTER PAY INTEREST SEMIANNUALLY AT 165 MINUS TWICE LIBOR FEES 03 TREASURY CORP OF VICTORIA AUSTRALIAN AGENCY 250 MILLION CANADIAN DOLLARS OF 725 EUROBONDS AT ISSUE PRICE 999 DUE NOV 24 2003 VIA SWISS BANK CORP REOFFERED AT 9825 BONDS YIELD 751 A SPREAD OF 55 BASIS POINTS OVER COMPARABLE CANADIAN GOVERNMENT BOND FEES TWO SWEDEN SOVEREIGN 1 BILLION OF GLOBAL FLOATINGRATE EURONOTES DUE NOVEMBER 1996 AT ISSUE AND FIXED REOFFER PRICE 999 VIA LEHMAN BROTHERS INTERNATIONAL AND JP MORGAN SECURITIES LTD INTEREST PAID QUARTERLY AT THE THREEMONTH DOLLAR LIBOR LESS 0125 FEES 01 9310270185 931027 MARKETING & MEDIA RJR EARNINGS FELL 58 IN 3RD PERIOD PRICE WAR IS CITED BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RJR NABISCO HOLDINGS CORP'S THIRDQUARTER PROFIT PLUNGED 58 THE RESULT OF THE CIGARETTE PRICE WAR RJR ALSO SAID IT WILL INCUR SIGNIFICANT EXPENSES IN THE FOURTH QUARTER DUE TO COSTCUTTING AND ANALYSTS EXPECT RJR TO POST A SIZABLE CHARGE BY YEAR END PHILIP MORRIS COS ALSO IS EXPECTED TO TAKE A FOURTHQUARTER CHARGE AS BOTH COMPANIES TRIM EXPENSES TO ADJUST TO THE LOWER PROFIT LEVELS OF THE CIGARETTE INDUSTRY FOR THE THIRD QUARTER PROFIT AT RJR THE SECOND LARGEST US CIGARETTE COMPANY FELL TO 76 MILLION OR FOUR CENTS A SHARE FROM 182 MILLION OR 13 CENTS A SHARE IN THE COMPARABLE 1992 QUARTER SALES DROPPED 11 TO 36 BILLION FROM 4 BILLION IN THE THIRD QUARTER LAST YEAR OF ALL THE MAJOR TOBACCO COMPANIES RJR IS THE MOST DEPENDENT ON THE US MARKET WHICH ACCOUNTED FOR ABOUT HALF ITS PROFIT THIS YEAR RJR'S DOMESTIC TOBACCO PROFIT FELL 64 AND SALES DECLINED 29 FROM LAST YEAR PRUDENTIAL SECURITIES INC SAID THE COMPANY'S TOTAL MARKET SHARE DECLINED SLIGHTLY DURING THE QUARTER TO 301 FROM 302 WINSTON SHIPMENTS WERE UP BUT SHIPMENTS OF CAMEL AND SALEM DROPPED THE COMPANY ALSO LOST SHARE IN THE DISCOUNT SEGMENT ANALYSTS ESTIMATE THAT RJR NEEDS TO CUT BETWEEN 200 MILLION AND 400 MILLION IN EXPENSES FOR ITS DOMESTIC TOBACCO BUSINESS TO BE PROFITABLE NEXT YEAR THE COMPANY ALREADY HAS ANNOUNCED PLANS TO ELIMINATE ABOUT 1000 TOBACCO JOBS WHILE MORE LAYOFFS ARE POSSIBLE ADDITIONAL CUTS ARE EXPECTED TO CENTER ON RJR'S ESTIMATED MARKETING BUDGET OF 25 BILLION ANALYSTS SAY THE COMPANY NEEDS TO CUT 250 MILLION IN MARKETING EXPENSES NEXT YEAR RJR DECLINED TO BE MORE SPECIFIC ABOUT THE EXPECTED CHARGE RJR'S PROFITS FROM ONGOING FOOD BUSINESSES GREW 10 TO 230 MILLION SALES FROM CONTINUING BUSINESSES WERE 173 BILLION AN INCREASE OF 6 IN NORTH AMERICA THE COMPANY'S NABISCO UNIT SAID ITS MARKET SHARE IN COOKIES AND CRACKERS WAS UP CONSIDERABLY FROM A YEAR AGO PRUDENTIAL SAID THE COMPANY'S BISCUIT SHARE ROSE TO 46 RJR STOCK CLOSED AT 5375 A SHARE UNCHANGED IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE 9310270184 931027 SHAREHOLDER ADVOCATE GROUP TO CLOSE ITS DOORS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON UNITED SHAREHOLDERS ASSOCIATION ONE OF THE MOST INFLUENTIAL SHAREHOLDER GROUPS OF THE PAST FEW YEARS IS CLOSING DOWN THE BOARD OF THE GROUP FORMED SEVEN YEARS AGO BY CORPORATE RAIDER T BOONE PICKENS JR TO OPEN AMERICA'S PROXY PROCESS TO SHAREHOLDERS VOTED MONDAY TO SHUTTER THE 65000MEMBER ORGANIZATION AT THE END OF THE YEAR BY CLOSING DOWN UNITED SHAREHOLDERS INSTANTLY WILL BECOME SOMETHING OF AN ODDITY IN WASHINGTON A LOBBYING GROUP THAT MEETS SOME OR ALL OF ITS GOALS AND THEN WALKS AWAY WE DON'T WANT THE GROUP TO BE SOME KIND OF A PAPER TIGER IN WASHINGTON JUST ANOTHER ASSOCIATION THAT SPENDS ALL IT'S TIME THREATENING HELL AND DAMNATION AND LIVING OFF ITS MEMBERS AND THEIR DUES SAID RALPH WHITWORTH PRESIDENT AND ONE OF THE FOUR BOARD MEMBERS WE STARTED OUT TO DO SOMETHING AND WE GOT IT DONE IN A GAME DOMINATED BY GIANT INVESTORS UNITED SHAREHOLDERS PLAYED THE VOICE OF THE INDIVIDUAL WHILE INSTITUTIONAL INVESTORS HOLDING MILLIONS OF SHARES OF STOCK COULD STOMP INTO CORPORATE OFFICES TO SEEK CHANGE UNITED SHAREHOLDERS USED CAMPAIGNS OF BLUSTER AND EMBARRASSMENT TO PROD COMPANIES TO CHANGE BY PUBLISHING TARGET LISTS OF COMPANIES WITH POLICIES IT DEEMED UNFRIENDLY TO SHAREHOLDERS THE GROUP PRESSED MANY CORPORATIONS TO CHANGE THEIR BOARDS' COMPOSITION RELATIONSHIPS AMONG DIRECTORS AND VOTING PROCEDURES UNITED SHAREHOLDERS WAS A LOUD VOICE IN THE FLAP OVER RUNAWAY EXECUTIVE PAY FOCUSING NOT ON EXHORBITANT SALARIES BUT INSTEAD ON THE ISSUE OF PAYFORPERFORMANCE AND TARGETING COMPANIES THAT COULDN'T JUSTIFY LOFTY EXECUTIVE COMPENSATION BECAUSE OF WEAK SHAREHOLDER RETURNS AS IMPORTANT AS ITS ACTIVISM AT INDIVIDUAL COMPANIES WAS THE GROUP'S ROLE AS A MAJOR PLAYER IN THE RECENT OVERHAUL OF FEDERAL RULES ON PROXY MATTERS AND EXECUTIVE PAY LAST YEAR THE SECURITIES AND EXCHANGE COMMISSION UNDER PRESSURE FROM CONGRESS AND SHAREHOLDERS EASED ITS RULES TO ALLOW SHAREHOLDERS MUCH MORE FREEDOM TO TALK ABOUT CORPORATE MATTERS NOW IT IS ROUTINE FOR SHAREHOLDERS TO LINK UP TO DISCUSS HOW THEY MIGHT VOTE ON ISSUES OR WHETHER A COMPANY'S POLICIES ARE STACKED AGAINST SHAREHOLDER DEMOCRACY THE RULE CHANGES SOLVED MANY OF THE ISSUES UNITED SHAREHOLDERS CAME TO WASHINGTON TO DEAL WITH AND THEY REDUCED THE PROSPECTS OF FURTHER CHANGES ACCORDING TO MR WHITWORTH IF WE COULD SEE ANOTHER BIG POLICY QUESTION ON THE HORIZON TO RALLY MEMBERS AROUND WE COULD JUSTIFY STAYING ORGANIZED HE SAID BUT I DON'T SEE THAT THE SEC TAKES A BIG BITE ON THESE THINGS ABOUT EVERY 10 YEARS THE DISAPPEARANCE OF UNITED SHAREHOLDERS WILL LEAVE SHAREHOLDER ACTIVISM TO LARGE PENSION FUNDS THEY WILL BE LED BY SUCH PLAYERS AS THE COUNCIL OF INSTITUTIONAL INVESTORS A GROUP THAT REPRESENTS PENSION FUNDS AND LABOR UNIONS AND BY SUCH LARGE PUBLIC FUNDS AS THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM TO BE SURE THOSE ARE THE PLAYERS WITH THE REAL POWER ANYWAY SINCE THEY HOLD COMPANIES' STOCK AND CAN MUSTER THE CLOUT TO VOTE LARGE BLOCS AGAINST DIRECTORS AND MANY IN THE INVESTMENT COMMUNITY HAVE LONG THOUGHT THAT UNITED SHAREHOLDERS NEVER REALLY WAS MUCH MORE THAN A LOWBUDGET GADFLY AND PUBLICITY MACHINE BUT THE PUBLICITY WORKED DOZENS OF COMPANIES CHANGED BOARD STRUCTURE OR VOTING MECHANISMS TO KEEP THEMSELVES OFF UNITED SHAREHOLDERS' TARGET LISTS ITT CORP SEARS ROEBUCK & CO CHAMPION INTERNATIONAL CORP AND AVON PRODUCTS INC ARE JUST A FEW OF THE COMPANIES THAT CHANGED IN REACTION TO THE GROUP'S THREATS LAST YEAR THE GROUP FILED 50 SHAREHOLDERS PROPOSALS AND REACHED AN ADDITIONAL 22 AGREEMENTS WITH COMPANIES TO CHANGE THEIR BYLAWS WITH UNITED SHAREHOLDERS OUT OF THE PICTURE SOME SHAREHOLDER ADVOCATES WONDER WHETHER INSTITUTIONAL HOLDERS WILL FIGHT JUST FOR THEMSELVES RATHER THAN ALL HOLDERS WHEN YOU REMOVE THE ORGANIZATIONAL VOICE OF THE INDIVIDUAL SHAREHOLDER THAT REMOVES AN IMPORTANT FORCE SAID PEG O'HARA OF THE INVESTOR RESPONSIBILITY RESEARCH CENTER ON THEIR OWN INDIVIDUAL SHAREHOLDERS HAVE LITTLE OBVIOUS IMPACT UNITED SHAREHOLDERS WAS FORMED IN 1986 BY MR PICKENS THE CHAIRMAN OF MESA PETROLEUM LP WITH 15 MILLION THE GOAL WAS TO CREATE A GRASS ROOTS ORGANIZATION IN WASHINGTON TO LOBBY IN FAVOR OF THE SOCALLED ONESHARE ONEVOTE RULE AT THE TIME MANY COMPANIES WERE ISSUING A SECOND CLASS OF STOCK WITH SOUPEDUP VOTING RIGHTS A MOVE THAT BLOCKED CORPORATE TAKEOVERS AND THE STOCK PREMIUMS THEY BROUGHT MR PICKENS LATER KICKED IN AN ADDITIONAL 1 MILLION BEFORE HE LEFT IN 1990 AND THE GROUP COLLECTED 50 ANNUALLY FROM EACH OF ITS INDIVIDUAL MEMBERS THE GROUP FIRST APPROACHED THENSEC CHAIRMAN JOHN SHAD IN 1986 SEEKING REFORMS TO A PROXY SYSTEM THEY ARGUED WAS TILTED TOWARD COMPANIES CITING A LACK OF EVIDENCE MR SHAD SENT THEM HOME BUT THE NEXT YEAR THEY CAME BACK WITH A REPORT ALLEGING MYRIAD ABUSES THEIR MOVEMENT GOT GOING IN EARNEST IN 1991 WHEN CORPORATE PAY BECAME AN ISSUE THAT THE PUBLIC AND MEDIA COULD RECOGNIZE AS A SYMBOL OF ABUSES IN THE INVESTMENT SYSTEM RICHARD BREEDEN THE SEC CHAIRMAN AT THE TIME SAW THE ISSUE AS ONE OF US CORPORATE COMPETITIVENESS AND SET OUT TO MAKE REFORM HIS LEGACY AT THE AGENCY OVER THE NEXT YEAR THE AGENCY PASSED RULES FORCING MORE DISCLOSURE OF HOW AND WHY EXECUTIVES ARE PAID AND BREAKING DOWN BARRIERS BETWEEN SHAREHOLDERS NOW MR WHITWORTH THINKS THE WAY TO CHANGE CORPORATE AMERICA IS TO FOCUS ON RELATIONSHIP INVESTING IN WHICH SHAREHOLDERS TAKE A MAJOR STAKE IN A COMPANY AND TRY TO CHANGE IT FROM THE INSIDE THE REASON WE HAD CREDIBILITY AND GOT CEOS TO TALK TO US WAS BECAUSE THEY THOUGHT WE COULD EMBARRASS THEM IN THE PRESS HE SAID BUT THAT'S NOT THE BEST WAY TO DO IT IT SHOULD BE DONE WITH PRIVATE RELATIONSHIPS 9310270183 931027 INTERNATIONAL VOLKSWAGEN LOBBIES ITS WORKERS TO GET A 4DAY WORKWEEK AT GERMAN PLANTS BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL VOLKSWAGEN AG MANAGEMENT IS LOBBYING ITS WORKER COUNCIL TO WIN APPROVAL TO INTRODUCE A FOURDAY WORKWEEK AT THE CAR MAKER'S GERMAN FACTORIES THE PROPOSAL NOW HAS THE FULL BACKING OF VW'S MANAGEMENT BOARD BUT MUST GET APPROVAL FROM WORKERS BEFORE IT CAN OFFICIALLY BE ANNOUNCED AND IMPLEMENTED A SPOKESMAN FOR VW EUROPE'S LARGEST CAR MAKER SAID MANAGEMENT AND LABOR WILL BE DISCUSSING PROPOSALS CONCERNING MORE FLEXIBLE WORK SCHEDULES TODAY AND HOPE TO REACH A CONCLUSION IN THE NEAR FUTURE THE VW OFFICIAL WOULDN'T SAY WHEN A PACT MIGHT BE ANNOUNCED VW'S GERMAN OPERATIONS CURRENTLY EMPLOY 108000 WORKERS ALTHOUGH THAT NUMBER WILL FALL TO 100000 BY THE END OF 1994 UNDER A PLAN PREVIOUSLY AGREED TO BY THE WORKER COUNCIL STILL RECENT PRODUCTIVITY IMPROVEMENTS COUPLED WITH EXPECTATIONS THAT 1994 VWBRAND CAR SALES WILL STAGNATE AT THE 14MILLIONUNIT LEVEL MEANS THAT ADDITIONAL CUTS ARE NEEDED VW OFFICIALS EXPLAINED A FOURDAY WORKWEEK PROVIDES A WAY FOR THE COMPANY TO CUT BACK ON PERSONNEL COSTS WITHOUT CAUSING FURTHER UNEMPLOYMENT VW IS THE LARGEST EMPLOYER IN THE STATE OF LOWER SAXONY WHERE ITS HEADQUARTERS ARE LOCATED THE LOCAL GOVERNMENT WHICH IS VW'S LARGEST SHAREHOLDER WITH A 20 STAKE WIELDS SIGNIFICANT INFLUENCE ON THE BOARD AND IS ANXIOUS THAT VW AVOID MASSIVE LAYOFFS THE CONCEPT OF A FOURDAY WORKWEEK WITH A CORRESPONDING REDUCTION IN PAY IS A RADICAL PROPOSAL FOR GERMAN INDUSTRY WHERE UNIONS CARRY CONSIDERABLE CLOUT HOWEVER FACING STAGGERING STATISTICS OF SOME FOUR MILLION UNEMPLOYED GERMANS LABOR LEADERS HAVE BEEN SURPRISINGLY OPEN TO VW'S SUGGESTION CAUTIONING ONLY THAT SUCH PROGRAMS OUGHT TO BE VOLUNTARY AND REVERSIBLE WHEN TIMES IMPROVE COST SAVINGS ARE CRUCIAL TO VW WHICH SHOWED A 16 BILLION MARK 950 MILLION LOSS IN THE FIRST HALF CHAIRMAN FERDINAND PIECH HAS HAD TO ABANDON PREVIOUS PROMISES THAT THE VW GROUP AS A WHOLE WOULD BE ABLE TO BREAK EVEN THIS YEAR IN PART BECAUSE OF THE 125 BILLION MARK LOSS EXPECTED AT THE COMPANY'S SPANISH UNIT SEAT SA WHERE SOME 9000 JOBS ARE BEING ELIMINATED 9310270182 931027 US THRIFT OFFICE BANS KEATING FROM BANKING WASHINGTON FORMER THRIFT EXECUTIVE CHARLES KEATING JR CURRENTLY SERVING A PRISON SENTENCE FOR HIS ROLE IN THE COLLAPSE OF LINCOLN SAVINGS & LOAN WAS BANNED FROM BANKING AND ORDERED BY FEDERAL AUTHORITIES TO PAY 36 MILLION IN RESTITUTION THE OFFICE OF THRIFT SUPERVISION SAID THE DECISION CAPS AN ADMINISTRATIVE ACTION THAT BEGAN IN AUGUST 1990 MR KEATING IS SERVING A 10YEAR STATE SENTENCE ON CRIMINAL FRAUD CHARGES STEMMING FROM THE FAILURE OF LINCOLN WHICH WAS OWNED BY HIS AMERICAN CONTINENTAL CORP LINCOLN'S COLLAPSE IN 1989 COST TAXPAYERS AN ESTIMATED 26 BILLION THE LARGEST THRIFT FAILURE IN HISTORY MR KEATING ALSO WAS SUBSEQUENTLY CONVICTED ON RELATED CHARGES IN FEDERAL COURT AND WAS SENTENCED TO 12 YEARS IN PRISON IT MAY TAKE THE THRIFT AGENCY A LONG TIME TO COLLECT ITS 36 MILLION MR KEATING WHO SAYS HE IS INSOLVENT HAS ALREADY BEEN ORDERED BY FEDERAL COURTS TO PAY CRIMINAL FORFEITURES RESTITUTION AND CIVIL DAMAGES EXCEEDING 2 BILLION 9310270181 931027 PARTNERSHIP WOES CUT INTO STRENGTH AT PRUDENTIAL UNIT BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC ISN'T GETTING TO KEEP MUCH OF ITS FAT PRETAX PROFIT THIS YEAR AS A RESULT OF ITS PARTNERSHIP MESS THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT HAS SET ASIDE MORE THAN 200 MILLION IN RESERVES THIS YEAR TO PAY THE LEGAL BILLS FOR ITS SOURED LIMITED PARTNERSHIPS SO FAR THIS YEAR PEOPLE FAMILIAR WITH THE FIRM SAID PRUDENTIAL SECURITIES PLANS TO SET ASIDE AS MUCH AS 100 MILLION IN ADDITIONAL RESERVES THE REST OF THE YEAR TO COVER THE INITIAL COST OF LAST WEEK'S SETTLEMENT WITH FEDERAL AND STATE REGULATORS THE RESERVES TRIPLE WHAT PRUDENTIAL PREDICTED IT WOULD SET ASIDE EARLIER THIS YEAR DWARF PRUDENTIAL'S REMAINING PRETAX PROFIT OF 202 MILLION FOR THE YEAR'S FIRST NINE MONTHS AND THE 1993 RESERVES WILL BRING THE TOTAL LEGAL TAB FOR PRUDENTIAL'S SOURED PARTNERSHIPS TO NEARLY 700 MILLION DURING THE PAST FEW YEARS TO DEAL WITH LAWSUITS BY DISGRUNTLED PARTNERSHIP INVESTORS PRUDENTIAL SECURITIES REACHED AN ACCORD TO PAY AT LEAST 371 MILLION TO SETTLE ALLEGATIONS THAT IT IMPROPERLY SOLD PARTNERSHIPS IN THE 1980S THE BULK OF THAT AMOUNT 330 MILLION WILL GO INTO A RESTITUTION FUND FOR INVESTORS THAT WILL BE OPENENDED CANDIDLY WE'RE GOING TO MAKE THIS UP TO FILL OUT THIS SETTLEMENT FUND IN THE SECOND HALF SAID HARDWICK SIMMONS PRUDENTIAL SECURITIES' PRESIDENT AND CHIEF EXECUTIVE OFFICER IN AN INTERVIEW BUT REGULATORS PRIVATELY PREDICT THAT THE FIRM WILL END UP PAYING OUT FAR MORE THAN THE 371 MILLION WHEN ALL INVESTORS ARE FINALLY PAID PRUDENTIAL EXECUTIVES FOR THEIR PART DISAGREE BASED ON OUR BEST ESTIMATES THIS RESERVE NUMBER IS A GOOD NUMBER GIVEN THE SETTLEMENTS WE'VE MADE SO FAR AND THE SETTLEMENTS UNDER WAY MR SIMMONS SAID HE BRUSHED OFF SUGGESTIONS THAT THE SETTLEMENT HAS SULLIED WHAT OTHERWISE WOULD HAVE BEEN A BANNER YEAR MANY OF PRUDENTIAL'S RIVALS INCLUDING MERRILL LYNCH & CO DEAN WITTER DISCOVER & CO AND PAINEWEBBER GROUP INC ARE REVELING IN RECORD EARNINGS AMID STRONG TRADING AND UNDERWRITING MARKETS THANK GOODNESS WE'VE HAD THIS BOOM TIME MR SIMMONS SAID IT'S ENABLED US TO PAY OUR DEBTS FOR THE PAST 9310270180 931027 WHO'S NEWS DIED ROY H PARK 83 WHO HELPED CREATE DUNCAN HINES FOODS AND LATER BUILT MEDIA CHAIN PARK COMMUNICATIONS INC MONDAY IN NEW YORK 9310270179 931027 WHO'S NEWS RINEHART IS NAMED HF AHMANSON CEO AND CHAIRMAN OF UNIT IRWINDALE CALIF HF AHMANSON & CO NAMED CHARLES R RINEHART 46 YEARS OLD CHIEF EXECUTIVE OFFICER AS WELL AS TO THE POSTS OF CHAIRMAN AND CHIEF EXECUTIVE OF ITS MAIN UNIT HOME SAVINGS OF AMERICA MR RINEHART THE BANKING CONCERN'S PRESIDENT AND CHIEF OPERATING OFFICER AND HOME SAVINGS' VICE CHAIRMAN AND CHIEF OPERATING OFFICER SUCCEEDS RICHARD H DEIHL 65 WHO WILL STEP DOWN FROM THE CEO POST AS PLANNED ON OCT 29 MR DEIHL WHO WILL REMAIN AHMANSON'S CHAIRMAN HAS BEEN CEO OF AHMANSON FOR NINE YEARS AND CEO OF HOME SAVINGS FOR 26 YEARS DURING HIS TENURE ASSETS AT HOME SAVINGS HAVE GROWN TO 50 BILLION FROM 2 BILLION AND ITS DEPOSTS HAVE GROWN TO 38 BILLION FROM 2 BILLION SINCE MR RINEHART JOINED AHMANSON IN 1989 THE COMPANY HAS BEEN WORKING TOWARD A TRANSITION OF MANAGEMENT TO MR RINEHART FROM MR DEIHL MR RINEHART WAS APPOINTED A DIRECTOR OF AHMANSON IN 1990 9310270178 931027 TRAVEL AIRLINES RETOOL SERVICES TO ATTRACT MORE FULLFARE FLIERS BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL BUSINESS TRAVEL IS LOSING ALTITUDE AND THE MAJOR AIRLINES ARE WORKING HARD TO GIVE IT SOME LIFT CARRIERS ARE STEPPING UP EFFORTS TO REGAIN THEIR TROPHY PASSENGERS BUSINESS PEOPLE WHO PAY FULL FARE BUT WHO HAVE BEEN CUTTING BACK ON AIR TRAVEL IN 1991 SOME 46 OF US FLIERS WERE TRAVELING FOR BUSINESS LAST YEAR THE BUSINESS TRAVELER ACCOUNTED FOR ONLY 37 OF FLIERS OTHER DISTRESS SIGNALS INSTEAD OF SCAVENGING FOR CHEAPER TICKETS 28 OF COMPANIES ARE SIMPLY REDUCING THE NUMBER OF TRIPS THEIR EMPLOYEES TAKE ACCORDING TO THE INTERNATIONAL AIR TRANSPORTATION ASSOCIATION AND OF THE BUSINESS PASSENGERS WHO STILL FLY MORE ARE SHIFTING FROM FIRST CLASS AND BUSINESS CLASS TO COACH TO ENSURE THAT BUSINESS PEOPLE DON'T DRIFT ANY FURTHER THE AIRLINES ARE AVIDLY COURTING THEM SOME ARE BUILDING SPECIAL ARRIVAL LOUNGES COMPLETE WITH SHOWERS FOR BUSINESS TRAVELERS TO FRESHEN UP AFTER FLIGHTS OTHERS ARE INSTALLING MORE FIRSTCLASS SEATS AND OFFERING THEM AS FREQUENTFLIER PERKS STILL OTHERS ARE REVAMPING COMPLEX FLIGHT SCHEDULES AT HUBS TO REDUCE LAYOVER TIMES IN THIS INDUSTRY A FEW PERCENTAGE POINTS IN REVENUE CAN MEAN THE DIFFERENCE BETWEEN AGONY AND ECSTASY SAYS MICHAEL E LEVINE EXECUTIVE VICE PRESIDENT MARKETING FOR NORTHWEST AIRLINES THAT'S WHY BUSINESS TRAVELERS ARE SO ATTRACTIVE AIRLINES COUNT ON THESE HIGHFARE PASSENGERS TO BLUNT THE EFFECTS OF COMPETITIVE FARE CUTTING WHICH HAVE CONTRIBUTED TO THREE YEARS OF INDUSTRYWIDE RECORD LOSSES BECAUSE OF THEIR SPUROFTHEMOMENT SCHEDULES THE HIGHYIELD TRAVELER OFTEN PAYS MUCH MORE THAN THOSE WHO BUY TICKETS IN ADVANCE FOR THE FINANCIALLY STRUGGLING AIRLINES BUSINESS TRAVELERS CAN GENERATE YIELDS 25 TO THREE TIMES HIGHER THAN THEIR LEISURE COUNTERPARTS TO ATTRACT THESE FLIERS AIRLINES ARE WORKING HARD TO PERSUADE TRAVELERS OF THE VALUE OF HIGHFARE SERVICE WINGS HOLDINGS INC'S NORTHWEST AIRLINES LATE LAST YEAR LAUNCHED AN AGGRESSIVE BUSINESSTRAVELER CAMPAIGN AT ITS BIG TOKYO HUB AT NARITA AIRPORT EAGER TO CUT LAYOVER TIME WHICH SOMETIMES STRETCHED TO FOUR HOURS THE CARRIER RESCHEDULED ALL 45 DAILY FLIGHTS AT THE LOGISTICALLY TANGLED AIRPORT IF THE REVAMPING FLOPPED NORTHWEST WOULD MISS DOZENS OF CONNECTIONS STRANDING PLANELOADS OF PASSENGERS INTERNALLY THE MASSIVE AND RISKY UNDERTAKING CAME TO BE CALLED PROJECT FUGU NAMED FOR A JAPANESE BLOWFISH THAT IF PREPARED CORRECTLY IS A DELICACY BUT IF NOT IS FATALLY POISONOUS BUT NORTHWEST WAS ABLE TO SHAVE MORE THAN AN HOUR OFF ITS NEW YORK TO HONG KONG FLIGHT AND NEARLY FOUR HOURS OFF ITS SEATTLE TO SINGAPORE FLIGHT TRAVELERS RESPONDED AND LAST WEEK NORTHWEST CREDITED THE NARITA PROJECT IN PART FOR THE CARRIER'S FIRST QUARTERLY PROFIT IN TWO YEARS BRITISH AIRWAYS WITH A REPUTATION FOR INNOVATIVE SERVICE IN THE AIR SET ITS MARKETING SITES ON THE GROUND LAST MONTH IT OPENED AN ARRIVAL LOUNGE AT LONDON'S HEATHROW AIRPORT THE TWOSTORY LOUNGE OFFERS TOPFARE PAYERS PRIVATE ROOMS WITH SHOWERS CLOTHESPRESSING SERVICE AND A BREAKFAST ROOM WHEN YOU'RE SPENDING 3400 FOR A ROUNDTRIP SERVICE SHOULDN'T BE AN EXPIRED PRODUCT ONCE YOU STEP OFF THE PLANE SAYS JOHN HURLEY A BUSINESS PROGRAMS MANAGER FOR BRITISH AIRWAYS BUSINESS TRAVELERS WHILE FULLY AWARE OF PRICE ARE OFTEN SWAYED MORE BY SCHEDULE FREQUENCY AND HASSLEFREE SERVICE PARTICULARLY ON LONGER FLIGHTS UAL CORP'S UNITED AIRLINES RECENTLY DISCOVERED THE POWER OF SCHEDULE PROMOTION OVER THE YEARS THE AIRLINE INCREASED DEPARTURES BETWEEN ITS HUB IN CHICAGO AND SIX BUSINESS CENTERS INCLUDING NEW YORK AND WASHINGTON BUT THE CARRIER HADN'T SUFFICIENTLY COMMUNICATED THAT FACT TO BUSINESS TRAVELERS SO UNITED SIMPLY BEGAN ADVERTISING ITS FREQUENT FLIGHTS TO THOSE CITIES REDIRECTING SOME OF THEM TO MORE CONVENIENT GATES AND MARKETING THE WHOLE THING AS ITS BUSINESS ONE SERVICE THE YEAROLD PROGRAM HAS INCREASED UNITED'S MARKET SHARE OF FULLFARE PASSENGERS IN EACH OF THE CITIES THE COMPANY SAYS AND IT JUST ADDED ATLANTA AND WHITE PLAINS NY SINCE MANY COMPANIES ARE BARRING MANAGERS AND OFFICERS FROM FIRST CLASS THERE IS A BUDDING DOMESTIC MARKET FOR BUSINESSCLASS SERVICE MUCH MORE COMMON ON OVERSEAS FLIGHTS AMERICAN AIRLINES BEGAN OFFERING THE PREMIUM SERVICE LAST YEAR ON FLIGHTS BETWEEN NEW YORK AND LOS ANGELES BUSINESSCLASS PASSENGERS GET FIRSTCLASSTYPE CUISINE AS WELL AS INDIVIDUAL HEAD AND LEG RESTS DESPITE PRICES SOMETIMES 60 HIGHER THAN FULL COACH FARES THE NEW BUSINESS CLASS HAS PROVED SO POPULAR THAT AMERICAN PLANS TO ADD IT IN DECEMBER ON ITS MIAMILOS ANGELES AND SAN DIEGONEW YORK FLIGHTS BY CONTRAST USAIR GROUP INC THINKS ABUNDANT FIRSTCLASS SEATING FOR FREQUENTFLIER UPGRADES WILL WIN OVER BUSINESS TRAVELERS STARTING NEXT MONTH USAIR WILL BEGIN TEARING OUT COACH SEATS IN ITS NEARLY TWO DOZEN 757 JETS TO INCREASE THE NUMBER OF FIRSTCLASS SEATS TO 24 FROM 16 SAYS SETH E SCHOFIELD USAIR'S CHAIRMAN WE'RE TRYING TO SIMPLIFY LIFE FOR THE HEAVY USER THE PURSUIT OF BUSINESS TRAVELERS IS ALIGNING AIRLINES WITH SOME UNUSUAL MARKETING PARTNERS IN FEBRUARY AFTER AMERICAN AIRLINES BEGAN DROPPING HINTS THAT ITS UNPROFITABLE HUB AT RALEIGHDURHAM NC MIGHT NEED TO BE CLOSED A DELEGATION OF WORRIED LOCAL BUSINESS EXECUTIVES FLEW WITH NORTH CAROLINA'S GOVERNOR TO THE AIRLINE'S HEADQUARTERS IN DALLAS THE GROUP PLEDGED TO HELP RECRUIT TRAVELERS FOR AMERICAN FROM RALEIGHBASED COMPANIES ROBERT L CRANDALL CHAIRMAN OF AMERICAN'S HOLDING COMPANY AMR CORP GAVE THEM 18 MONTHS TO HELP TRY TO TURN THINGS AROUND AIDED PARTLY BY THE WORDOFMOUTH CAMPAIGN IN RALEIGH BUSINESS CIRCLES AMERICAN HAS TURNED ITS FIRST MONTHLY PROFIT AT THE HUB SINCE IT WAS OPENED IN 1987 9310270177 931027 WHO'S NEWS YANKELOVICH PARTNERS INC YANKELOVICH PARTNERS INC WESTPORT CONN AMY STEINER SCHAFRANN WAS PROMOTED TO MANAGING PARTNER AT THIS MARKET RESEARCH FIRM MS SCHAFRANN WAS PREVIOUSLY A PARTNER AT THE COMPANY 9310270176 931027 WHO'S NEWS ELI LILLY & CO ELI LILLY & CO INDIANAPOLIS KENNETH L LAY 50YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ENRON CORP WAS ELECTED A DIRECTOR OF THIS PHARMACEUTICAL CONCERN EXPANDING THE BOARD TO 14 MEMBERS 9310270175 931027 WHO'S NEWS TANDEM COMPUTERS INC TANDEM COMPUTERS INC CUPERTINO CALIF SIR CAMPBELL FRASER 70 YEARS OLD WAS ELECTED A DIRECTOR OF THIS COMPUTER CONCERN MR FRASER FORMER CHAIRMAN OF DUNLOP HOLDINGS PLC AS WELL AS SCOTTISH TELEVISION IS ON THE ADVISORY BOARD OF WELLS FARGO BANK SAN FRANCISCO AND IS A TRUSTEE OF THE ECONOMIST HIS APPOINTMENT INCREASES TANDEM'S BOARD TO 11 MEMBERS 9310270174 931027 P&G EARNINGS BEAT FORECASTS IN FIRST PERIOD POPULARITY OF NEW PRODUCTS HELPED FIRM OVERCOME EXCHANGERATE EFFECT BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PROCTER & GAMBLE CO POSTED BETTERTHANEXPECTED FISCAL FIRSTQUARTER EARNINGS DESPITE UNFAVORABLE FOREIGN EXCHANGE RATES THE CINCINNATIBASED CONSUMER PRODUCTS GIANT REPORTED NET INCOME OF 670 MILLION OR 95 CENTS A SHARE FOR THE PERIOD ENDED SEPT 30 IN THE YEAREARLIER QUARTER P&G REPORTED A LOSS OF 515 MILLION OR 79 CENTS A SHARE REFLECTING CHARGES OF 200 MILLION FOR THE DIVESTITURE OF ITS JUICE BUSINESS AND 925 MILLION FOR ACCOUNTING CHANGES EXCLUDING THOSE CHARGES P&G EARNED 610 MILLION OR 86 CENTS A SHARE SALES FELL 4 TO 756 BILLION FROM 788 BILLION P&G WHICH DERIVES 50 OF ITS SALES OUTSIDE THE US WAS HURT BY UNFAVORABLE FOREIGN CURRENCY TRANSLATIONS AS WELL AS PRICE WARS IN THE US PRIMARILY IN DISPOSABLE DIAPERS AND LAUNDRY DETERGENTS THE COMPANY NOTED HOWEVER THAT UNIT SALES ROSE 6 SEPARATELY THE COMPANY SETTLED ITS LAWSUIT ALLEGING THAT NEIL P DEFEO A FORMER EXECUTIVE NOW AT CLOROX CO VIOLATED A NONCOMPETE AGREEMENT BY JUMPING TO THE P&G RIVAL THE SETTLEMENT ALLOWS MR DEFEO TO CONTINUE AS CLOROX'S GROUP VICE PRESIDENT IN CHARGE OF US OPERATIONS BUT BARS HIM FOR CERTAIN PERIODS OF TIME FROM HANDLING LAUNDRY AND CLEANING PRODUCTS THAT COMPETE DIRECTLY WITH P&G IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY P&G ROSE 125 CENTS TO CLOSE AT 52125 P&G'S EARNINGS EXCEEDED ANALYSTS' EXPECTATIONS OF 93 CENTS A SHARE ANALYSTS SAID THE COMPANY IS BENEFITING FROM THE POPULARITY OF NEW PRODUCTS SUCH AS PANTENE PROV SHAMPOO WHICH HELPED PROPEL THE HAIRCARE BUSINESS TO A 23 UNITVOLUME INCREASE NEW VARIETIES OF MR CLEAN AND COMET CLEANERS ALSO LIFTED VOLUMES BUT SOME ANALYSTS QUESTIONED WHETHER THESE AND OTHER LINE EXTENSIONS WILL PROVE TO HAVE STAYING POWER A LOT OF THEM SEEM TO BE METOO PRODUCTS SAID LYNNE R HYMAN AN ANALYST WITH FIRST BOSTON WHO RATES P&G STOCK A HOLD P&G CONTINUED TO STRUGGLE WITH SEVERAL LACKLUSTER BUSINESSES INCLUDING FOODS AND BEVERAGES AND DISPOSABLE DIAPERS WHICH HAD NO UNIT SALES GROWTH AND TISSUES AND PAPER TOWELS WHICH SAW A MERE 2 INCREASE IN UNIT SALES THE COMPANY EMPHASIZED THAT SEPTEMBER DIAPER SHIPMENTS HIT A TWOYEAR HIGH THANKS LARGELY TO THE LAUNCH OF NEW PAMPERS ULTRA DRY THINS STILL EARNINGS WERE STRONG SAID DEEPAK RAJ AN ANALYST WITH MERRILL LYNCH WHO NOTED THAT EXCLUDING THE IMPACT OF UNFAVORABLE EXCHANGE RATES EARNINGS WOULD HAVE RISEN 17 FROM THE YEAREARLIER PROFIT FROM OPERATIONS MR RAJ IS RECOMMENDING THE STOCK MR DEFEO WHO WAS A P&G VICE PRESIDENT AND MANAGING DIRECTOR OF WORLDWIDE STRATEGIC PLANNING FOR LAUNDRY AND CLEANING PRODUCTS RESIGNED JULY 8 P&G'S SUIT FILED IN HAMILTON COUNTY COURT OF COMMON PLEAS IN OHIO ALLEGED THAT A STOCKOPTION AGREEMENT IN MR DEFEO'S EMPLOYMENT CONTRACT EFFECTIVELY BARRED HIM FROM JOINING A COMPETITOR FOR THREE YEARS AND THAT MR DEFEO MIGHT USE P&G'S TRADE SECRETS FOR CLOROX'S BENEFIT UNDER THE SETTLEMENT MR DEFEO MUST WAIT UNTIL MARCH BEFORE OVERSEEING CLOROX'S US SURFACECLEANER BUSINESS NEXT SEPTEMBER FOR DRY BLEACH AND JANUARY 1995 FOR LIQUID BLEACH HE IS ALSO BARRED FROM HANDLING INTERNATIONAL BLEACH AND HOUSEHOLD CLEANERS UNTIL FEBRUARY 1996 A PERIOD OF MORE THAN TWO YEARS THAT P&G DESCRIBED IN A NEWS RELEASE AS THE FULL TERM OF THE DISPUTED STOCKOPTION PLAN THE SETTLEMENT WHICH PROVIDES GREAT DETAIL ABOUT MEETINGS IN WHICH MR DEFEO CAN'T PARTICIPATE AND MEMORANDA HE CAN'T RECEIVE ALSO SAYS HIS COMPENSATION CAN'T REFLECT THE RESULTS OF BUSINESSES HE IS BARRED FROM RUNNING IN A STATEMENT MR DEFEO EMPHASIZED THAT THE AGREEMENT RECOGNIZES THAT HE NEITHER TOOK PROPRIETARY INFORMATION NOR HAS CONVEYED ANY PROPRIETARY INFORMATION TO CLOROX IN THE SAME STATEMENT CLOROX PLAYED DOWN THE SETTLEMENT'S EFFECT SAYING IT HAD NO PLANS FOR MR DEFEO TO HANDLE INTERNATIONAL PRODUCTS THE OAKLAND CALIF COMPANY SAID THAT WHILE WAITING FOR THE SETTLEMENT TO RUN ITS COURSE MR DEFEO WILL FOCUS ON OTHER PRODUCTS INCLUDING HIDDEN VALLEY RANCH SALAD DRESSING KINGSFORD CHARCOAL AND KC MASTERPIECE BARBECUE SAUCE 9310270173 931027 WHO'S NEWS DIEBOLD INC DIEBOLD INC CANTON OHIO L LINDSEY HALSTEAD 63 YEARS OLD FORMER CHAIRMAN OF FORD MOTOR CO'S EUROPEAN UNIT WAS ELECTED A DIRECTOR OF THIS MAKER OF AUTOMATED TELLER MACHINES AND SECURITY PRODUCTS THE ELECTION EXPANDS THE BOARD TO 10 MEMBERS 9310270172 931027 TECHNOLOGY FLU VACCINE USE IN CANADA FOUND TO REDUCE DEATHS BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCHERS REPORTED THAT A WIDESPREAD USE OF INFLUENZA VACCINE IN CANADA SHARPLY REDUCED HOSPITALIZATIONS AND DEATHS CAUSED BY RESPIRATORY ILLNESS THE RESEARCH REPORT PROVIDED SOME OF THE STRONGEST EVIDENCE YET BACKING THE BROAD USE OF FLU SHOTS VACCINATING AGAINST FLU HAS RECEIVED MUCH ATTENTION OF LATE BECAUSE FLU EXPERTS ARE URGING PEOPLE TO GET INOCULATED EARLIER THAN USUAL THIS YEAR TO PROTECT AGAINST A POSSIBLE EARLY OUTBREAK OF THE VIRAL INFECTION THE STUDY WHICH REVIEWED MEDICAL RECORDS OF ABOUT 20000 PEOPLE IN MANITOBA FROM THE EARLY 1980S FOUND THAT FLU VACCINE USE REDUCED THE RISK OF HOSPITAL ADMISSIONS 32 TO 39 AND DECREASED RISK OF HOSPITAL DEATH BY RESPIRATORY ILLNESS BY ABOUT 50 EARLIER THIS YEAR A REPORT OF A SIMILAR BUT MUCH SMALLER POPULATION STUDY IN THE US PROMPTED THE FEDERAL DEPARTMENT OF HEALTH AND HUMAN SERVICES FOR THE FIRST TIME TO PAY FOR FLU SHOTS FOR 35 MILLION ELDERLY AND DISABLED PEOPLE COVERED BY THE MEDICARE HEALTH INSURANCE PROGRAM GOVERNMENT STUDIES HAVE FOUND THAT ONLY A FRACTION OF PEOPLE OVER 65 GET FLU SHOTS EVEN THOUGH THEY AND PEOPLE WITH CHRONIC ILLNESS ARE MOST VULNERABLE TO THE VIRAL ILLNESS OFFICIALS AT THE GOVERNMENT'S CENTERS FOR DISEASE CONTROL SAY SOME PEOPLE DON'T GET VACCINATED BECAUSE THEY BELIEVE THE VACCINE ISN'T VERY EFFECTIVE BECAUSE OF THE VACCINE'S COST OR THE INABILITY TO GET TO A CLINIC OR DOCTOR'S OFFICE WHERE THE VACCINE IS OFFERED THE CDC SAID FLU AND ITS COMPLICATIONS CAUSE 10000 TO 45000 DEATHS A YEAR IN THE NEW STUDY MEDICAL INVESTIGATORS REVIEWED THE HEALTH OUTCOME OF TWO LARGE GROUPS OF PEOPLE OVER AGE 45 DURING TWO INTENSE FLU OUTBREAKS BETWEEN 1982 AND 1986 ONE GROUP CONSISTED OF PEOPLE VACCINATED WHILE THE OTHER GROUP WAS OF A SIMILAR SET OF PEOPLE WHO WEREN'T VACCINATED AND WOUND UP AT MANITOBA AREA HOSPITALS BY COMPARING THE TWO GROUPS IN WHAT'S CALLED A MATCHEDSET ANALYSIS THE RESEARCHERS FOUND NEW INFORMATION INDICATING THAT VACCINATION IS MORE BROADLY PROTECTIVE AGAINST HOSPITAL ADMISSIONS FOR ALL RESPIRATORY CONDITIONS DEATHS FROM ALL RESPIRATORY CONDITIONS AND DEATHS FROM ALL CAUSES THE STUDY WAS CONDUCTED BY DAVID FEDSON AT THE UNIVERSITY OF VIRGINIA HEALTH SCIENCES CENTER IN CHARLOTTESVILLE RESEARCHERS AT THE UNIVERSITY OF MANITOBA IN WINNIPEG AND WINNIPEG GOVERNMENT HEALTH OFFICIALS IT IS PUBLISHED IN THIS WEEK'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION 9310270171 931027 WHO'S NEWS INTERNATIONAL POULTRY CO INTERNATIONAL POULTRY CO NEW YORK DONN R WILSON 58 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS RESTAURANT CHAIN A NEW POSITION MR WILSON WAS MOST RECENTLY PRESIDENT OF MAGICUTS INC A CANADIAN HAIRCARE COMPANY 9310270170 931027 WHO'S NEWS NATIONAL CITY CORP NATIONAL CITY CORP CLEVELAND DAVID A DABERKO WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER BOTH NEW POSTS MR DABERKO 48 YEARS OLD WAS DEPUTY CHAIRMAN OF THE BANK HOLDING COMPANY HIS POSITION WILL NOT BE FILLED 9310270169 931027 ENTERPRISE MANY SMALL BUSINESSES ARE SOLD ON LEASING EQUIPMENT MEMORIES OF RECENT BANK REJECTIONS LOWER UPFRONT COSTS CONTINUE TREND BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL ROGER WOLFANGER DIDN'T EVEN CALL A BANKER THIS YEAR WHEN HE NEEDED BUSINESS EQUIPMENT HE SAYS BANKS HAD REJECTED HIS WILCOX COLLISION REPAIR CENTER IN ROCHESTER NY FOR A LOAN TWO YEARS AGO AND HE WAS TOO DISCOURAGED TO GO THROUGH THE WHOLE APPROVAL PROCESS AGAIN HE SAYS HE CHOSE INSTEAD TO LEASE THE EQUIPMENT DOING SO REQUIRED FILLING OUT ONLY A SIMPLE ONEPAGE APPLICATION TWO DAYS LATER HIS COMPANY WAS TAKING DELIVERY ON A 4000 MACHINE THAT STRAIGHTENS AUTO FRAMES ONE PROBLEM THOUGH THE EFFECTIVE INTEREST RATE ON THE LEASE IS 217 AND WILCOX IS STUCK WITH IT FOR TWO YEARS COUNTLESS COMPANIES ARE IN THE SAME POSITION HAVING BEEN REBUFFED BY BANKS IN THE TIGHT LOAN MARKET OF RECENT YEARS THEY TURNED TO EQUIPMENT LEASING AND NOW THEY ARE SADDLED WITH LEASE COMMITMENTS THAT SEEM MORE ONEROUS WITH EACH SLIP IN INTEREST RATES IN MANY CASES THE EFFECTIVE RATES ON THE LEASES EXCEED THOSE ON THE BUSINESS OWNER'S PERSONAL VISA CARD SMALLBUSINESS FINANCIAL ADVISERS SAY LEASING OFTEN MAKES GOOD SENSE IT CONSERVES A COMPANY'S BORROWING POWER IT REQUIRES LESS UPFRONT CASH THAN A PURCHASE BECAUSE THE SECURITY DEPOSIT REQUIRED IS USUALLY MUCH SMALLER THAN A LOAN'S DOWN PAYMENT LEASING ALSO OFFERS BETTER PROTECTION AGAINST TECHNOLOGICAL CHANGE TRADING IN AN OLD MACHINE FOR A NEW ONE WHEN THE LEASE EXPIRES IS SIMPLER THAN GETTING RID OF OBSOLETE EQUIPMENT THAT A COMPANY OWNS AND FOR NUMEROUS SMALL BUSINESSES THAT FOUND CREDIT TIGHT IN RECENT YEARS LEASING WAS THE ONLY WAY TO FINANCE NEW EQUIPMENT BUT BUSINESS OWNERS WHO HAD TROUBLE GETTING LOANS FREQUENTLY LEAPT INTO EQUIPMENT LEASES WITH LITTLE OR NO ANALYSIS OF THEIR ULTIMATE COST SAYS ROGER HARRIS PRESIDENT OF PADGETT BUSINESS SERVICES INC AN ATHENS GA FRANCHISER OF ACCOUNTING AND TAX SERVICES FOR SMALL BUSINESSES IF THE MONTHLY RENTAL PAYMENT SEEMED AFFORDABLE THEY DISREGARDED EFFECTIVE INTEREST RATES HE SAYS THEY ALSO TENDED TO IGNORE THE TAX EFFECTS OF THEIR DECISION MANY BUSINESS OWNERS COULD HAVE DONE BETTER BORROWING MR HARRIS ADDS BUT BECAUSE LEASING IS SO MUCH EASIER THAN GOING TO THE BANK THEY DON'T EVEN CONSIDER IT LEASING HAS CLEARLY GAINED POPULARITY WITH SMALL FIRMS TRANSACTIONS VALUED AT LESS THAN 25000 GREW TO 246 OF ALL EQUIPMENT LEASE DEALS LAST YEAR FROM 225 THE PREVIOUS YEAR AND 208 IN 1987 THE EQUIPMENT LEASING ASSOCIATION OF AMERICA SAYS THE SCARCITY OF SMALLBUSINESS LOANS IN THE RECENT RECESSION WAS THE SINGLE MOSTBENEFICIAL THING TO HAPPEN TO THIS INDUSTRY SAYS PETER SUTHERLAND PRESIDENT OF LFC OF OKLAHOMA INC AN ENGLEWOOD COLO UNIT OF HW ALLEN CO THAT LEASES EQUIPMENT TO SMALL BUSINESSES HE SAYS THE VALUE OF LFC'S LEASE PORTFOLIO HAS RISEN 59 SINCE 1989 TO 47 MILLION NUNLO CORP WHICH OWNS A QUICKPRINT SHOP IN BALLWIN MO WAS TURNED DOWN FOR A LOAN TO BUY A NEW 20000 PRINTING PRESS TWO YEARS AGO JOSEPH LOCRICCHIO COMPANY PRESIDENT SAYS THE BANK TOLD HIM HIS COMPANY'S DEBT OF 60000 WAS TOO HIGH TO PERMIT FURTHER LENDING MR LOCRICCHIO WOUND UP LEASING THE PRESS INSTEAD BUT TO REDUCE HIS 36 MONTHLY PAYMENTS TO 550 EACH FROM 620 HE AGREED TO A LEASING ARRANGEMENT THAT COULD LEAVE HIM PAYING SKYHIGH INTEREST RATES SOME LEASES SPECIFY THE EQUIPMENT'S VALUE WHEN THE AGREEMENT EXPIRES DOING SO SETS THE PRICE A COMPANY PAYS IF IT WANTS TO PURCHASE THE EQUIPMENT AT THAT TIME KNOWING THIS PRICE IN ADVANCE HELPS A COMPANY CALCULATE THE EFFECTIVE INTEREST RATE OF THE LEASE THE EFFECTIVE RATE IS COMPUTED ON THE ASSUMPTION THAT THE LEASEHOLDER BUYS THE EQUIPMENT FOR ITS RESIDUAL VALUE AT THE END OF THE LEASE AS COMMONLY OCCURS BUT TERMS OF NUNLO'S AGREEMENT CALL FOR THE PRESS'S RESIDUAL VALUE TO BE NEGOTIATED AT THE END OF THE LEASE WHILE MR LOCRICCHIO WAS AWARE OF THE DANGERS OF SUCH AN ARRANGEMENT HE SAYS THE LOWER MONTHLY PAYMENT MADE THE RISK WORTH TAKING I'LL PROBABLY BE SLIGHTLY UNHAPPY WITH THE VALUE ULTIMATELY ASSIGNED TO THE EQUIPMENT HE SAYS BUT SOMETIMES YOU DON'T DO THINGS THAT ARE BEST IN THE LONG RUN BECAUSE YOU HAVE TO LOOK AT WHAT'S BEST RIGHT NOW JAY STOEGBAUER SAYS HE TOO WAS MORE CONCERNED WITH LEASING'S EASE AND LOWER IMMEDIATE COST THAN WITH ITS LONGTERM IMPLICATIONS AS THE OWNER OF AN ORANGE CALIF COMPANY THAT PRODUCES PHOTOGRAPHY FOR ADVERTISEMENTS MR STOEGBAUER LEASED THIS MONTH A 37000 DIGITALIMAGING DEVICE THAT SPEEDS PRODUCTION AND REDUCES COSTS HE SAYS THREE LEASING COMPANIES COMPETED FOR HIS BUSINESS HARDLY THE SORT OF ATTENTION HE HAD GOTTEN FROM BANKS THE LEASING COMPANIES THAT FOUGHT FOR HIS BUSINESS AGREED TO WAIVE SECURITY DEPOSITS AND CUT HIS MONTHLY PAYMENTS MORE THAN 4 THE BANKS BY CONTRAST WERE INFLEXIBLE THEY SAID THE INTEREST RATE WAS TWO POINTS OVER PRIME AND THAT WAS IT MR STOEGBAUER SAYS THEY ALSO WOULDN'T BUDGE ON THE 20 DOWN PAYMENT FACED WITH THE LEASINGCOMPANY CONCESSIONS MR STOEGBAUER SAYS HE DIDN'T BOTHER COMPUTING HIS AGREEMENT'S EFFECTIVE INTEREST RATE OF 154 NEARLY DOUBLE THE RATE BANKS WERE OFFERING HE SAYS HE ALSO GAVE LITTLE WEIGHT TO THE TAX EFFECTS OF HIS DECISION INCLUDING HIS FORFEITURE OF NEW DEPRECIATION ALLOWANCES ON EQUIPMENT PURCHASES THAT WOULD PERMIT HIM TO WRITE OFF 17500 OF HIS EXPENSES IN THE FIRST YEAR I'M NOT EVEN AWARE WHAT THE INTEREST RATE IS AND TO BE HONEST THAT WASN'T EVEN A CONSIDERATION MR STOEGBAUER SAYS IF THERE IS ADDITIONAL COST INVOLVED IT'S OFFSET BY LESS HASSLE AND NOT HAVING TO SPEND AS MUCH UPFRONT 9310270168 931027 WHO'S NEWS CHRISTIANA COS CHRISTIANA COS MILWAUKEE GARY R SARNER 47YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMPANY'S WISCOLD INC UNIT WAS NAMED PRESIDENT OF THE REALESTATE DEVELOPER MAKER OF OILDRILLING PRODUCTS AND PROVIDER OF PUBLIC REFRIGERATED WAREHOUSING MR SARNER WHO RETAINS HIS RESPONSIBILITIES AT THE UNIT ALSO WAS NAMED TO THE NEW POSITION OF CHIEF OPERATING OFFICER HE SUCCEEDS SHELDON B LUBAR 64 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE COMPANY ALSO THE COMPANY'S CHIEF FINANCIAL OFFICER WILLIAM T DONOVAN 41 WAS NAMED EXECUTIVE VICE PRESIDENT AND NICHOLAS F BRADY CHAIRMAN OF DARBY ADVISORS AND FORMER SECRETARY OF THE TREASURY WAS NAMED A DIRECTOR SUCCEEDING JAMES C ROWE WHO DIDN'T STAND FOR REELECTION 9310270167 931027 GENSYM SIGNS PACT WITH LORAL CAMBRIDGE MASS GENSYM CORP SAID IT SIGNED A FIVEYEAR AGREEMENT WITH LORAL CORP'S SPACE INFORMATION SYSTEMS TO SUPPLY ARTIFICIAL INTELLIGENCE TOOLS FOR THE NEW NATIONAL AERONAUTICS AND SPACE ADMINISTRATION CONTROL CENTER COMPLEX AT THE JOHNSON SPACE CENTER TERMS WEREN'T DISCLOSED 9310270166 931027 TECHNOLOGY PC MAKER AST POSTS 77 RISE IN NET 80 JUMP IN SALES FOR FISCAL 1ST PERIOD BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL AST RESEARCH INC STILL DIGESTING A RECENT ACQUISITION SAID ITS EARNINGS IN THE FISCAL FIRST QUARTER ROSE 77 TO 82 MILLION OR 26 CENTS A SHARE DESPITE A NEAR DOUBLING IN SALES THE RESULTS FOR THE QUARTER ENDED OCT 2 COMPARED WITH PROFIT OF 76 MILLION OR 24 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES JUMPED 80 TO 5144 MILLION FROM 2864 MILLION THE PROFIT REPORT BY THE IRVINE CALIF MAKER OF PERSONAL COMPUTERS MET MOST ANALYSTS' EXPECTATIONS AST'S STOCK CLOSED YESTERDAY AT 1875 DOWN 75 CENTS IN NATIONAL OVERTHECOUNTER TRADING AST OFFICIALS SPECULATED THAT THE DECLINE INCLUDED SOME PROFITTAKING ALTHOUGH AST HAS BEEN MAKING ENORMOUS STRIDES IN BUILDING MARKET SHARE SAFI QURESHEY PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID EARNINGS GROWTH WAS SUBDUED IN THE QUARTER LARGELY BECAUSE THE COMPANY WAS STILL DIGESTING ITS JULY ACQUISITION OF TANDY CORP'S PC BUSINESS MR QURESHEY SAID AST HAS HAD TO WORK DOWN TANDY INVENTORY WHICH ANALYSTS SAY REPRESENTS SOME OLDER PRODUCTS THAT HAVE TO BE MOVED AT BARGAIN PRICES MR QURESHEY ADDED THAT AFTER THE TANDY BUSINESS IS FULLY INTEGRATED WITH THAT OF AST HIS COMPANY WOULD BETTER REALIZE THE BENEFITS THE REAL EFFICIENCY WILL START COMING IN THE FISCAL THIRD QUARTER HE SAID LIKE OTHER TOP PC MAKERS AST'S SALES WERE BOLSTERED BY A SHIFT IN DEMAND TO BRANDNAME COMPUTER MAKERS FROM SMALLER CLONE VENDORS THAT CAN NO LONGER COMPETE EFFECTIVELY ON PRICE NOW THAT PC PRICES HAVE FALLEN AST ALSO ADDED MARKET SHARE WITH ITS TANDY ACQUISITION ACCORDING TO 1992 RANKINGS BY INTERNATIONAL DATA CORP A FRAMINGHAM MASS MARKETRESEARCH FIRM THE COMBINED ASTTANDY SHIPMENTS IN THE US WERE FOURTHLARGEST AMONG PC MAKERS DEFINITELY WE HAVE BECOME A TIERONE PLAYER THAT IS HERE TO STAY MR QURESHEY SAID ADDING THAT DEMAND REMAINS SO STRONG THAT THE BACKLOG IN ORDERS CONTINUES TO BUILD WEEKLY ANALYSTS SAY AST WITH ITS BROAD PRODUCT LINE AND STRONG GLOBAL PRESENCE IS WELL POSITIONED FOR SOLID GROWTH IN BOTH REVENUE AND EARNINGS ON BALANCE THIS IS A COMPANY THAT IN A COUPLE OF YEARS IS GOING TO HAVE TO BE RECKONED WITH SAID STEVEN L ESKENAZI AN ANALYST AT ALEX BROWN & SONS 9310270165 931027 ECONOMY MORE PESSIMISM OVER ECONOMY SHOWN BY INDEX CONSUMER CONFIDENCE FALLS THIS MONTH ERASING MOST OF SEPTEMBER GAIN BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON INCREASING PESSIMISM ABOUT ECONOMIC AND EMPLOYMENT PROSPECTS CAUSED A NEW FALLOFF IN CONSUMER CONFIDENCE THIS MONTH A NEW SURVEY SUGGESTS THE CONFERENCE BOARD SAID ITS CONSUMER CONFIDENCE INDEX FOR OCTOBER DECLINED TO 594 FROM SEPTEMBER'S REVISED 638 READING CONFIDENCE PERKED UP A BIT IN SEPTEMBER BUT THE OCTOBER DECLINE WIPED AWAY NEARLY ALL OF THE GAIN SINCE JANUARY THE INDEX HAS FALLEN MORE THAN 17 POINTS MOREOVER CONSUMERS SEEM MOST WARY OF FUTURE PROSPECTS THE OCTOBER SURVEY OF 5000 FAMILIES BY THE BUSINESS RESEARCH GROUP FOUND THAT AMERICANS FELT THE SAME ABOUT CURRENT ECONOMIC CONDITIONS IN OCTOBER AS THEY DID THE MONTH BEFORE BUT THERE WERE SHARP DECLINES IN EXPECTATIONS FOR THE IMMEDIATE FUTURE THERE CONTINUES TO BE LITTLE IN RECENT CONSUMER CONFIDENCE SURVEY READINGS TO SUGGEST THAT A SIGNIFICANT IMPROVEMENT IN THE ECONOMY IS LIKELY IN THE IMMEDIATE MONTHS AHEAD SAID FABIAN LINDEN EXECUTIVE DIRECTOR OF THE BOARD'S CONSUMER RESEARCH CENTER HOWEVER THERE SEEMS TO BE NO DIRECT CORRELATION BETWEEN THE DOUR MOODS OF AMERICANS AND THEIR SPENDING WHICH HAS BEEN INCREASING CONSISTENTLY SEPARATELY THE LABOR DEPARTMENT'S EMPLOYMENT COST INDEX FOR THE THIRD QUARTER SUGGESTS THAT INFLATION IS STILL WELL UNDER CONTROL THE INDEX A MEASURE OF WAGE AND BENEFIT COMPENSATION ROSE 08 IN THE THIRD QUARTER AFTER INCREASING 09 IN THE SECOND QUARTER THE INCREASE IN WAGES AND SALARIES WAS 09 LAST QUARTER COMPARED WITH A 06 INCREASE IN THE SECOND QUARTER THE COMPENSATION INDEX HAS BEEN NEAR THE 1 LEVEL SINCE THE LAST QUARTER OF 1991 THE GROWTH IN BENEFIT COSTS WHICH ARE AFFECTED MOST BY HEALTH CARE SLOWED IN THE THIRD QUARTER TO A 08 INCREASE FROM A 14 RISE IN THE SECOND QUARTER CHRISTOPHER LOW SENIOR ECONOMIST FOR CARROLL MCENTEE & MCGINLEY INC SUGGESTED BENEFIT COSTS WILL SLOW FURTHER AS THE MEDICAL INDUSTRY CONTINUES TO VOLUNTARILY LIMIT PRICE INCREASES IN ORDER TO AVOID THE PERSONAL ATTENTION OF FEDERAL REFORMERS BUT SUNG WON SOHN CHIEF ECONOMIST FOR NORWEST CORP IN MINNEAPOLIS SAID RECENT CUTS IN HEALTHCARE COSTS MAY BE A ONETIME FAD FOREVER CHANGED BY THE COMING HEALTH LEGISLATION WHICH COULD ALSO AFFECT INFLATIONARY TRENDS ALL FIGURES HAVE BEEN ADJUSTED FOR SEASONAL VARIATIONS 9310270164 931027 FINANCING BUSINESS CANANDAIGUA WINE CO CANANDAIGUA WINE CO CANANDAIGUA NY SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE OFFERING OF 130 MILLION PRINCIPAL AMOUNT OF SENIOR SUBORDINATED NOTES DUE 2003 THE COMPANY SAID NET PROCEEDS OF THE PROPOSED OFFERING WILL BE USED TO REPAY PART OF THE DEBT INCURRED TO FINANCE THE ACQUISITION OF VINTNERS INTERNATIONAL CO THAT WAS COMPLETED OCT 15 CANADAIGUA SAID UNDERWRITERS FOR THE OFFERING ARE CHASE SECURITIES INC AND CS FIRST BOSTON INC 9310270163 931027 WHO'S NEWS AMERICAN INTERNATIONAL GROUP INC AMERICAN INTERNATIONAL GROUP INC NEW YORK JOHN A MYERS PRESIDENT OF AIG AVIATION INC WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER AT THIS INSURANCE CONCERN'S COMMERCIAL AIRLINE AND GENERAL AVIATION INSURANCE UNIT MR MYERS 59 YEARS OLD SUCCEEDS B MICHAEL SCHLENKE 60 WHO WAS NAMED PRESIDENT OF AIG'S AMERICAN HOME ASSURANCE CO 9310270162 931027 CD YIELDS END WEEK WITH LITTLE CHANGE NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS CHANGED ONLY SLIGHTLY IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS EASED TO 268 FROM 269 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS SLID TO 436 FROM 438 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS REMAINED AT 315 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD ROSE A BIT TO 452 FROM 444 ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE INCHED UP TO 279 FROM 277 ON FIVEYEAR JUMBOS THE AVERAGE CREPT TO 449 FROM 447 ACCORDING TO BANXQUOTE 9310270161 931027 WHO'S NEWS CARPENTER TECHNOLOGY CORP CARPENTER TECHNOLOGY CORP READING PA THOMAS BEAVER JR RETIRED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BEN FRANKLIN TECHNOLOGY CENTER RETIRED FROM THE BOARD OF THIS MAKER OF SPECIALTY STEEL PRODUCTS AND SPECIALTY ALLOYS REDUCING ITS MEMBERSHIP TO 12 MR BEAVER HAD REACHED MANDATORY RETIREMENT AGE A SUCCESSOR WASN'T NAMED 9310270160 931027 LETTERS TO THE EDITOR SOMALIA'S PROBLEMS AS OLD AS HUMANITY WHILE I AGREE WITH PROF GEORGE BN AYITTEY THAT THERE NEED TO BE SOLUTIONS FOR SOMALIA'S PROBLEMS I AM NOT SO SURE THAT THERE ARE AFRICAN SOLUTIONS OR EVEN THAT SOMALIA'S PROBLEMS ARE AFRICAN PROBLEMS AN AFRICAN SOLUTION FOR SOMALIA EDITORIAL PAGE OCT THE PROBLEMS IN SOMALIA ARE AS OLD AS THE HUMAN RACE THEY ARE ABOUT THE FACT THAT DIFFERENT GROUPS OF PEOPLE WHO SHARE COMMON INTERESTS ARE COMPETING FOR POWER IN ORDER TO GAIN ACCESS TO SCARCE RESOURCES THE OBVIOUS SOLUTION FOR THIS PROBLEM IS SHOW THESE GROUPS THAT THEIR INTEREST IS BEST SERVED BY PEACEFUL COMPETITION TO SUGGEST THAT THERE IS SOMETHING UNIQUELY AFRICAN ABOUT SOMALIA'S PROBLEMS OR THAT SOLUTIONS UNIQUELY TAILORED BY AFRICANS CAN SOLVE THESE PROBLEMS IS AN INTELLECTUAL BLUNDER IF THE CLAN WARFARE AMONG SOMALIS IS SOMEHOW LIMITED TO THE AFRICAN CONTINENT HOW DOES THE PROFESSOR EXPLAIN THE SAME PROBLEMS IN THE FORMER YUGOSLAVIA WHERE ETHNIC WARFARE RAGES TODAY OR IN THE MANY REPUBLICS OF THE FORMER SOVIET UNION WHERE VARIOUS ETHNIC GROUPS ARE FIGHTING OVER POWER AND TERRITORIES IRONICALLY THE ONE AFRICAN SOLUTION MR AYITTEY CITED AS A SUCCESSFUL OPERATION IN LIBERIA HAS BEEN AS SUCCESSFUL AS THE UNITED NATIONS OPERATION IN SOMALIA WHICH HE CITED AS A FAILURE IN SOMALIA FOR WHATEVER REASON THE UN PEACEKEEPERS WENT AFTER ONE PARTICULAR WARLORD GEN MOHAMMED FARAH AIDID NOT ONLY DID THEY FAIL TO CAPTURE HIM BUT THEY TOOK HEAVY CASUALTIES 70 SOLDIERS SO FAR AND THEIR OPERATION BECAME A CLASSIC TEXTBOOK EXAMPLE OF HOW NOT TO RUN AN OPERATION LIKEWISE IN LIBERIA THE PEACEKEEPING TROOPS OF SOME WEST AFRICAN COUNTRIES CHASED ONE PARTICULAR WARLORD CHARLES TAYLOR ONLY TO BECOME YET ANOTHER TEXTBOOK EXAMPLE OF HOW NOT TO DO THINGS FOOD CONVOYS AND REFUGEE CAMPS HAVE BEEN ATTACKED BY SUPPOSED REGIONAL PEACEKEEPERS LIBERIAN WOMEN AND CHILDREN HAVE TAKEN SOME CASUALTIES SOME OF THE COUNTRIES THAT HAVE TROOPS IN LIBERIA NOTABLY NIGERIA WHICH SENT THE LARGEST CONTINGENT OF PEACEKEEPERS HAVE DECLARED THEIR INTENT TO GET OUT AND HAVE SET DEADLINES AND THE SUPPOSED GOVERNMENT IN LIBERIA HEADED BY FORMER POLITICAL SCIENCE PROFESSOR AMOS SAWYER GOVERNS ONLY THE PRESIDENTIAL PALACE A SOLUTION EXISTS FOR BOTH PLACES AND THERE IS NOTHING AFRICAN ABOUT IT ALL THAT IS NEEDED IS THE ESTABLISHMENT OF TRUSTEESHIPS RUN BY COMPETENT FOREIGN MANAGERS WHO HAVE THE EXPERIENCE TO GET THINGS DONE WITHOUT THE BIAS OF BELONGING TO ANY OF THE CLANS THAT ARE FIGHTING FOR POWER BACK IN 1985 WHILE SUPERVISING THE DISCHARGE OF A SHIP IN LAGOS NIGERIA I RECALL SEEING HUNDREDS OF GHANAN CITIZENS FIGHTING POLICE AND EACH OTHER AS THEY GRAPPLINGHOOKED ABOARD THE LAST CARGO SHIP TO TEMA AHEAD OF THE DEADLINE FOR FREE DEPARTURE FROM NIGERIA AFTER MIDNIGHT THAT NIGHT THEY WERE THREATENED WITH IMPRISONMENT AND LOSS OF ALL POSSESSIONS MANY THOUSANDS HAD BEEN ILLEGALLY WORKING IN NIGERIA FOR YEARS DUE TO POOR ECONOMIC CONDITIONS IN THEIR NATIVE GHANA IT WAS NOT A PRETTY SIGHT IN HIS ARTICLE MR AYITTEY A NATIVE OF GHANA BROUGHT BACK THIS MEMORY AND MADE ME WONDER IF THE AUTHOR WAS IN WASHINGTON THEN AS WELL ADMITTEDLY THIS WAS AN INSIGNIFICANT AFRICAN EVENT WHEN COMPARED WITH PERENNIAL SUBSAHARAN FAMINE IDI AMINSCALE GENOCIDE PERSISTENT TRIBAL AND CIVIL WARS AIDS WIDESPREAD GOVERNMENT CORRUPTION AND A HORRENDOUS RECORD OF HUMAN RIGHTS VIOLATIONS BUT IT SERVES AS A REMINDER THAT AFRICA'S CORE PROBLEMS ARE A COMPOSITE OF MANY EQUALLY INSIGNIFICANT FLASHPOINTS THAT THE AFRICAN COOPERATION CHAMPIONED BY MR AYITTEY COULD HAVE CONTROLLED ANY NUMBER OF TIMES IN THE PAST CRUELLY IRONIC WHILE OUR MEN DIE TO SERVE OUT WHAT MR AYITTEY CRITICIZES AS A HASTILY CONCEIVED DISASTER OF AN INTERNATIONAL EFFORT TO MAKE A DIFFERENCE IN SOMALIA HE SERVES UP MORE PALAVER REGARDING A DIMINISHED AFRICAN ROLE COMFORTABLY PENNED FROM HIS IVORY TOWER SOMEWHERE IN GREATER WASHINGTON THE CAPITALS OF EUROPE ARE EQUALLY FILLED WITH HIS ILK WHO ARE EAGER TO BROKER NEW WESTERN FUNDING OR SUPPORT BUT WHO WILL NEVER GO HOME TO FOMENT PERMANENT CHANGE UNFORTUNATELY FOR THOSE WHO HAVE LOST PRICELESS LOVED ONES IN SOMALIA AFRICAN TALK ABOUT AFRICAN SELFDETERMINATION IS STILL CHEAP 9310270159 931027 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED EQUAL TO 90 OR MORE OF SHARES SOLD SHOLDS OTHER CLASS OF STOCK XREFLECTS SHARES HELD INDIRECTLY LATE FILING BASE PERIOD IS LESS THAN 3 YEARS OOFFICER ZOTHER BOUGHT OR SOLD DURING THE LAST 12 WEEKS EXPRESSED AS A PERCENTAGE CHANGE OF ONLY THEIR HOLDINGS AT THE START OF THE PERIOD REFLECTS COMPANIES FOR WHICH FILINGS MADE LAST WEEK SHOWED SOME INSIDER ACTIVITY DURING THE LATEST 12 WEEKS EXCLUDED COMPANIES WITH TOTAL TRADES VALUED UNDER 75000 OPTIONRELATED SALES COMPANIES WITH FEWER THAN THREE BUYERS OR SELLERS OR FEWER BUYERS OR SELLERS THAN THE HISTORICAL AVERAGE FOR THE PERIOD 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 9310270158 931027 WHO'S NEWS PILLOWTEX CORP PILLOWTEX CORP DALLAS PAUL G GILLEASE VICE PRESIDENT AND GENERAL MANAGER OF DUPONT TEXTILES A BUSINESS LINE WITHIN DUPONT CO WAS ADDED TO THE BOARD OF THIS MAKER OF PILLOWS AND BEDDING RAISING THE NUMBER OF DIRECTORS TO EIGHT 9310270157 931027 YOUR MONEY MATTERS SECTOR FUNDS CAN HAVE A PLACE IN DIVERSIFIED PORTFOLIO BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL WANT TO PLAY THE TELECOMMUNICATIONS BOOM BUT DON'T KNOW WHAT STOCK TO PICK OR MAYBE YOU BELIEVE LOW INTEREST RATES BODE WELL FOR BROKERAGE FIRMS AND BANKS BUT YOU CAN'T DECIDE WHETHER TO BUY MERRILL LYNCH CHARLES SCHWAB OR WELLS FARGO MUTUALFUND COMPANIES SAY THEY HAVE JUST WHAT YOU WANT SECTOR FUNDS WHICH INVEST IN A SPECIFIC INDUSTRY OR THEME INSTEAD OF BUYING A SINGLE STOCK YOU BUY INTO A WHOLE PORTFOLIO OF STOCKS WITHIN A SPECIALIZED GROUP SINCE SECTOR FUNDS ARE MORE CONCENTRATED THAN THE TYPICAL DIVERSIFIED MUTUAL FUND THEY HAVE MORE RISKS AND THEY DON'T MAKE SENSE AS AN INDIVIDUAL'S TOTAL INVESTMENT STRATEGY BUT FOR SOPHISTICATED INVESTORS WHO WILL WATCH THEM CLOSELY SECTOR FUNDS CAN ADD SPICE TO A WELLDIVERSIFIED PORTFOLIO INVESTMENT PROS SAY THEY SAY SECTOR FUNDS CAN MAKE SENSE IN LIMITED AMOUNTS PERHAPS 10 TO 20 OF A PORTFOLIO IF YOU HAVE A STRONG CONVICTION AND EVIDENCE THAT A CERTAIN INDUSTRY OR THEME WILL DOMINATE YOU CAN ADD POTENTIAL HORSEPOWER TO YOUR PORTFOLIO BY BUYING A SECTOR FUND SAYS CHARLES CAIN PRESIDENT OF CAIN ASSET MANAGEMENT A NEW YORK INVESTMENTMANAGEMENT FIRM MORE AND MORE INVESTORS SEEM TO FAVOR THIS IDEA FOR AT LEAST A SMALL PART OF THEIR HOLDINGS ASSETS IN THE 172 SECTOR FUNDS HAVE SURGED 61 DURING THE PAST YEAR TO 428 BILLION SAYS MORNINGSTAR INC A CHICAGO FIRM THAT TRACKS MUTUALFUND PERFORMANCE IN THE PAST 12 MONTHS MUTUALFUND COMPANIES HAVE LAUNCHED 26 NEW SECTOR FUNDS MUCH OF THE NEW MONEY HAS FLOWED INTO UTILITYSECTOR FUNDS STRONG SALES OF SECTOR FUNDS ARE TYPICAL OF A TOPPY' STOCK MARKET SAYS NEAL LITVACK EXECUTIVE VICE PRESIDENT MARKETING AT FIDELITY INVESTMENTS THE BOSTONBASED MUTUALFUND GIANT AGGRESSIVE INVESTORS HAVE TROUBLE PICKING STOCKS OR FINDING VALUES IN A HIGH MARKET SO THEY TURN TO SECTOR FUNDS BELIEVING THAT PROFESSIONAL MANAGERS ARE BETTER EQUIPPED TO FIND UNDISCOVERED VALUES SECTORFUND INVESTING IS TRICKY IF YOU'RE NIMBLE ENOUGH TO MOVE INAND OUTOF THE RIGHT SECTOR FUND AT THE RIGHT TIME YOUR PERFORMANCE CAN SIZZLE FIDELITY SELECT BROKERAGE FUND A FUND THAT INVESTS ONLY IN BROKERAGE STOCKS IS UP 34 SO FAR THIS YEAR VANGUARD SPECIALIZED GOLD FUND IS UP 638 TO DATE BUT IF YOU PICK WRONG YOU'LL PAY THE PRICE BECAUSE IN A TRUE SECTOR FUND YOUR FUND MANAGER CAN'T SWITCH OUT OF THE INDUSTRY INVESCO STRATEGIC HEALTH SCIENCES FUND IS DOWN 135 SO FAR THIS YEAR AFTER ACHIEVING IMPRESSIVE RETURNS FROM 1985 TO 1991 ALL TOO OFTEN INVESTORS BUY THE FUND AT THE TOP SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS AN INDEPENDENT MUTUALFUND PUBLICATION THE FUNDS' POPULARITY DOESN'T MEAN ONCECONSERVATIVE INVESTORS ARE ABANDONING THEIR DIVERSIFIED FUNDS AND CERTIFICATES OF DEPOSIT TO PLUNGE HEADLONG INTO SECTOR INVESTING FIDELITY INVESTMENTS WHICH HAS 5 BILLION INVESTED IN ITS 36 SECTOR FUNDS SAYS THREEFOURTHS OF ITS SECTORFUND INVESTORS OWN ONLY ONE SUCH FUND SECTOR FUNDS DO HAVE SEVERAL ADVANTAGES OVER INDIVIDUAL STOCKS IF YOU WANT TO INVEST IN BIOTECHNOLOGY OR TECHNOLOGY STOCKS WHAT ARE THE CHANCES THAT YOU WILL KNOW WHICH COMPANY WILL BUILD A BETTER MOUSETRAP ASKS ERIC M KOBREN EDITOR OF FIDELITY INSIGHT A WELLESLEY HILLS MASS INDEPENDENT NEWSLETTER YOU ALSO AVOID THE COMPANYSPECIFIC RISK THAT THE TOP EXECUTIVES WILL PERISH IN A PLANE CRASH OR THAT A COMPETITOR WILL COME UP WITH A BETTER PRODUCT MR KOBREN WHO ALSO MANAGES 320 MILLION BY USING NOLOAD MUTUAL FUNDS SAYS HE USES SECTOR FUNDS TO GIVE A PORTFOLIO A SPECIAL KICKER TO CAPITALIZE ON THE RECOVERING ECONOMY AND CYCLICAL STOCKS HE INVESTED IN DIVERSIFIED VALUESTYLE MUTUAL FUNDS SUCH AS FIDELITY EQUITYINCOME FUND BUT TO GIVE THE THEIGHTING HE INVESTED IN FIDELITY SELECT INDUSTRIAL EQUIPMENT FUND WHICH HOLDS STOCKS OF DOWNSIZED CONSTRUCTION INDUSTRIAL AND FARMMACHINERY FIRMS THE PURE PLAY DELIVERED MORE PUNCH FIDELITY EQUITYINCOME IS UP 188 SO FAR THIS YEAR WHILE FIDELITY INDUSTRIAL EQUIPMENT HAS SURGED 339 SECTOR FUNDS ALSO HAVE SEVERAL DISADVANTAGES THEY OFTEN HAVE HIGHER MANAGEMENT EXPENSES BECAUSE THEY ARE ACTIVELY TRADED AND HAVE FEWER SHAREHOLDERS OVER WHOM TO SPREAD FIXED COSTS ACCORDING TO MORNINGSTAR THE AVERAGE EXPENSE RATIO AT SECTOR FUNDS IS ABOUT 175 THE AVERAGE GROWTH FUND'S EXPENSE RATIO IS ABOUT 125 FIDELITY AND SOME OTHER MUTUALFUND COMPANIES LEVY SALES CHARGES TO DISCOURAGE TOO MUCH INANDOUT SWITCHING IN ADDITION SOME COMPANIES NOTABLY FIDELITY USE SECTOR FUNDS AS TRAINING FUNDS FOR NEW MANAGERS THE BIG DANGER OF THESE FUNDS IS THAT THEY LIMIT MANAGERIAL BRILLIANCE SAYS MR REKENTHALER IF YOU PICK A BROADCAST FUND YOUR MANAGER IS STUCK IN BROADCAST STOCKS EVEN IF HE OR SHE THINKS THE GROUP IS OVERVALUED IN CONTRAST HE SAYS THE MANAGER OF A TYPICAL DIVERSIFIED FUND CAN MOVE OUT OF A TROUBLED SECTOR INTO A MORE PROMISING ONE MR REKENTHALER SAYS FIDELITY'S MR LITVACK SAYS A SECTORFUND MANAGER CAN MOVE INTO CASH BUT THAT MOST SECTOR FUNDS NEVER HAVE MORE THAN 10 IN CASH UNLESS THEY HAVE TO SELL SHARES TO MEET REDEMPTIONS YOU ALSO SHOULDN'T BUY SECTOR FUNDS ON LONGTERM PAST PERFORMANCE ALONE SAYS SHELDON JACOBS EDITOR OF NOLOAD FUND INVESTOR AN IRVINGTONONHUDSON NY NEWSLETTER IF YOU BUY ON PAST PERFORMANCE YOU TEND TO BUY A SECTOR AFTER IT'S HOT AND THEN YOU ARE SUBJECT TO MARKET ROTATION HE SAYS BUY ON WEAKNESS YOU'VE GOT TO DO FUNDAMENTAL RESEARCH ON AN INDUSTRY AND THEN BUY A FUND ON WEAKNESS SAYS MR JACOBS THE KEY IS TO BUY A FUND JUST AS IT'S STARTING TO MOVE HE SAYS MOREOVER SECTORFUND INVESTORS MUST ACTIVELY WATCH THEIR FUNDS SAYS DAN LEONARD SENIOR VICE PRESIDENT OF INVESCO FUNDS GROUP AND MANAGER OF TWO SECTOR FUNDS THESE AREN'T THE KIND OF FUNDS YOU BUY AND PUT AWAY HE SAYS YOU MUST BE READY TO SELL WHEN THE LEADERSHIP CHANGES MR LITVACK SUGGESTS THAT WHEN INVESTORS BUY SECTOR FUNDS THEY SET A PRICE TARGET AND SELL WHEN THE FUND MEETS THAT OBJECTIVE ALSO HE RECOMMENDS THAT INVESTORS INDICATE IN ADVANCE HOW MUCH OF A LOSS THEY'RE WILLING TO TAKE AND WHEN THE FUND HITS THAT PRICE SELL IT'S ALSO POSSIBLE TO SELL SECTOR FUNDS SHORT BUT IT'S A DIFFICULT WAY TO MAKE MONEY SAYS MR LITVACK IN A SHORT SALE AN INVESTOR HOPES TO MAKE A PROFIT BY SELLING BORROWED MUTUALFUND SHARES NOW AND BUYING BACK AN EQUAL NUMBER OF SHARES AT A LOWER PRICE LATER TO REPLACE THE BORROWED SHARES AN INVESTOR MIGHT FOLLOW THIS APPROACH IF HE OR SHE THINKS THE IMMEDIATE FUTURE OF GOLD OR HEALTH CARE FOR EXAMPLE IS NEGATIVE ONLY ABOUT 200 FIDELITY DISCOUNT BROKERAGE CUSTOMERS SHORT SECTOR FUNDS REGULARLY MR LITVACK SAYS WHAT SECTOR FUNDS DO PROS RECOMMEND TODAY MR KOBREN LIKES SIX FIDELITY SELECT FUNDS DEVELOPING COMMUNICATIONS INDUSTRIAL EQUIPMENT TELECOMMUNICATIONS ENERGY SERVICES INDUSTRIAL MATERIALS AND NATURAL GAS MR CAIN PICKS THREE FIDELITY SELECT FUNDS DEVELOPING COMMUNICATIONS TELECOMMUNICATIONS AND BROADCAST MEDIA HE ALSO THINKS INVESCO STRATEGIC LEISURE FUND AND T ROWE PRICE SCIENCE & TECHNOLOGY FUND ARE GOOD BETS FOR ANOTHER WAY TO PLAY THE TELECOMMUNICATIONS BOOM ROBERT J BRINKER EDITOR OF BOB BRINKER'S MARKETIMER A PRINCETON NJ NEWSLETTER SUGGESTS MONTGOMERY GLOBAL COMMUNICATIONS FUND 9310270156 931027 LEISURE & ARTS BOOKER PRIZE TO IRISH NOVEL OF CHILDHOOD BY PAUL LEVY LONDON THIS YEAR'S BOOKER PRIZE FOR A WORK OF FICTION IN THE ENGLISH LANGUAGE HAS BEEN WON BY THE IRISH WRITER RODDY DOYLE FOR PADDY CLARKE HA HA HA DESPITE THE INELIGIBILITY OF AMERICAN WRITERS THE 30000 PRIZE REMAINS THE MOST IMPORTANT LITERARY PRIZE IN THE ENGLISHSPEAKING WORLD AND MR DOYLE CAN EXPECT A FIVEFOLD INCREASE IN THE SALES OF HIS NOVEL EVEN THOUGH HE CONTINUES THE BOOKER TRADITION OF MEDIOCRITY BRITAIN'S ANNUAL LITERARY CIRCUS HAS BEEN GOING FOR 25 YEARS RECENTLY IT HAS DEVOLVED ON A SUCCESSION OF DUDS GOOD WRITERS HAVE ALSO WON IT BUT SELDOM FOR THEIR BEST BOOKS ALMOST EVERY YEAR CRITICS COMPLAIN THAT THE SHORT LIST IS ECCENTRIC TO THE POINT OF PERVERSITY EVEN THE BOOKER OF BOOKERS AN AWARD RECENTLY MADE TO THE BEST WINNER OF THE FIRST QUARTER CENTURY WENT TO A BOOK THAT IS AS MUCH A HISTORICAL DOCUMENT AS IT IS A WORK OF ART SALMAN RUSHDIE'S MIDNIGHT'S CHILDREN THE WINNING NOVEL FOR 1993 IS A CHILD'SEYE VIEW OF GROWING UP IN IRELAND AT FIRST ONE SUPPOSES THAT THE POINT OF THE OBSESSIVE REFERENCES TO GOUGED EYES SNOT EXCREMENT AND VOMIT IS TO EXPLAIN HOW CHILDREN GET SO BRUTALIZED THAT THEY CANNOT ESCAPE GROWING UP TO BE TERRORISTS SPREADING DEATH IN THEIR RAVAGED LAND AT THE END YOU REALIZE IT'S NOTHING OF THE SORT BUT MERELY A SENTIMENTAL TALE OF A TOUGH KID'S VULNERABILITY IN THE FACE OF HIS PARENTS' MARRIAGE BREAKING UP A DOMESTIC WEEPY AT THE PRIZEGIVING WHICH WAS BROADCAST LAST NIGHT LIVE ON TELEVISION HERE THE EARL OF GOWRIE FORMER ARTS MINISTER AND NOW SOTHEBY'S EUROPEAN CHAIRMAN SAID THAT MOST OF OUR DISCUSSION REVOLVED ROUND THREE BOOKS IT IS NOT DIFFICULT TO GUESS WHAT THE OTHER TWO WERE FOR THEY ARE FAR BETTER BOOKS THAN THE WINNER AND THIS WAS REFLECTED IN THE LOWER ODDS ON THEM QUOTED BY BOOKMAKERS PRIOR TO THE ANNOUNCEMENT THE STONE DIARIES BY THE CANADIAN CAROL SHIELDS SETS OUT TO BE A DOMESTIC STORY WITH A SCOPE OF SEVERAL GENERATIONS A QUIET TALE OF THE EVERYDAY LIFE OF AN ORDINARY PERSON DAISY GOODWILL INDEED IT STARTS OUT AS HER AUTOBIOGRAPHY ILLUSTRATED WITH FAMILY SNAPSHOTS ABRUPTLY HOWEVER THE NARRATIVE SHIFTS AND IS GIVEN IN TURN TO SEVERAL OTHER CHARACTERS THE ODD THING IS THAT IT SUCCEEDS SO WE WITNESS DAISY'S DEATH BOTH OBJECTIVELY AND FROM HER OWN POINT OF VIEW AND BOTH PERSPECTIVES ARE MOVING THE AUSTRALIAN DAVID MALOUF'S REMEMBERING BABYLON IS A SKILLED SPARE HISTORICAL CHRONICLE WITH THE BOILEDDOWN CONCENTRATION OF POETRY THERE ARE LOTS OF REPULSIVE CHILDHOOD SCABS AND SORES IN THIS FINE BOOK BUT TO SOME PURPOSE GEMMY THE SHIPWRECKED ENGLISH BOY BROUGHT UP BY ABORIGINES IS TOO INARTICULATE EVER QUITE TO COME ALIVE AS A CHARACTER IN HIS OWN RIGHT BUT HE WORKS AS A NARRATIVE DEVICE JOLTING THE OTHER CHARACTERS INTO REVEALING THEIR INNER WORKINGS HOW ON EARTH COULD THIS YEAR'S JUDGES CHAIRED BY LORD GOWRIE AND INCLUDING GILLIAN BEER PROFESSOR OF ENGLISH AT CAMBRIDGE ANNE CHISHOLM A WELLKNOWN AUTHOR AND JOURNALIST AND THE FRENCH WRITER AND BROADCASTER OLIVIER TODD HAVE CHOSEN THIS YEAR'S SCATTY SHORT LIST IT SEEMS ALMOST WILLFUL TO HAVE IGNORED THE RIVAL CLAIMS OF JULIAN BARNES AND IRIS MURDOCH BOTH OF WHOM HAVE PUBLISHED NOVELS THIS YEAR THE JUDGES HAVE SHOWN A PROPENSITY FOR GUTSY NASTINESS IN AT LEAST TWO OF THEIR CHOICES WHY THEN OVERLOOK MUCH MORE SERIOUSLY NASTY AND INVENTIVE NOVELS SUCH AS WILL SELF'S MY IDEA OF FUN AND JONATHAN MEADES'S POMPEY SEVERAL OF THE TITLES ON THIS YEAR'S BOOKER SHORT LIST INVOLVE A DEGREE OF EXPERIMENTATION WITH NARRATIVE DEVICES SOMETHING THE JUDGES OBVIOUSLY APPRECIATE SO WHY DID THEY NEGLECT ADAM MARSJONES'S THE WATERS OF THIRST A MORE ACCOMPLISHED EXAMPLE OF NARRATIVE MANIPULATION THAN ANY OF THIS YEAR'S CROP ABOVE ALL HOW COULD THEY BRING THEMSELVES TO IGNORE VIKRAM SETH'S ENORMOUS A SUITABLE BOY TOLSTOYAN IN ITS BREADTH OF SYMPATHY AND HUMANITY AMONG THE NONWINNERS THE JUDGES DID SHORTLIST CARYL PHILLIPS'S CROSSING THE RIVER DEPENDS ON THE CONCEIT THAT THE NAMELESS AFRICAN NARRATOR OF THE FIRST PAGE SOLD HIS THREE CHILDREN INTO SLAVERY WHEN HIS CROPS FAILED 250 YEARS AGO WITH A POETIC DISREGARD FOR THE LINEAR NATURE OF TIME ONE OF THEM IS A MISSIONARY IN LIBERIA IN THE EARLY 19TH CENTURY ANOTHER A PIONEER IN THE AMERICAN WILD WEST IN THE LATE 19TH CENTURY AND THE THIRD A BLACK AMERICAN GI STATIONED IN ENGLAND DURING WORLD WAR II MOREOVER MR PHILLIPS TREATS US TO THE DIARY OF THE CAPTAIN OF THE SLAVER THAT TRANSPORTED THEM TO AMERICA IN 1752 MR PHILLIPS A NATIVE OF ST KITTS BROUGHT UP IN ENGLAND ALSO UTILIZES SHIFTING NARRATORS AS WELL AS MOST OF THE DEVICES AVAILABLE TO THE SELFCONSCIOUS CREATIVE WRITER OF TODAY LETTERS DIARIES AND STREAM OF CONSCIOUSNESS ALL ARE DEPLOYED WITH SOME SKILL BUT NOT ENOUGH TO WELD THESE FOUR EXCELLENT SOMETIMES GRIPPING BUT ULTIMATELY DISPARATE STORIES INTO A SINGLE FOCUSED NARRATIVE THE JUDGES ALSO NOMINATED TIBOR FISCHER'S UNDER THE FROG WHICH PROCLAIMS ITSELF A BLACK COMEDY ON THE TITLE PAGE A ROMP INVOLVING A HUNGARIAN PROFESSIONAL AMATEUR BASKETBALL TEAM IN THE YEARS LEADING UP TO 1956 IT HAS A LOT OF ENERGY AND SOME GOOD JOKES HOWEVER MR FISCHER BORN IN ENGLAND IN 1959 TO HUNGARIAN PARENTS HAS A CAVALIER WAY WITH THE ENGLISH LANGUAGE NOUNS BECOME VERBS VERBS NOUNS AND BOTH METAMORPHOSE INTO ADJECTIVES YOU'VE NEVER BEFORE ENCOUNTERED THOUGH AMUSING THE FIRST 20 TIMES HE DOES IT THE TRICK SOON BECOMES MANNERED DESPITE THE NOVEL'S TRAGIC ENDING IN OCTOBER 1956 THE BOOK IS SLIGHT UNMEMORABLE AND LEAVES YOU OPENMOUTHED WITH WONDER AT THE JUDGES SHORTLISTING IT BUT NOT MR BARNES'S THE PORCUPINE ANOTHER NOVEL SET IN EASTERN EUROPE WHILE NO ON WOULD CLAIM THAT IT IS HIS BEST IT IS ON AN ALTOGETHER DIFFERENT ARTISTIC PLANE FROM MR FISCHER'S THE FINAL NOMINEE CANADIANBORN MICHAEL IGNATIEFF'S SCAR TISSUE IS IN PART TOUCHING AS A FIRSTPERSON MEMOIR OF THE DETERIORATION AND DEATH OF THE NARRATOR'S MOTHER FROM AN ALZHEIMER'SLIKE DISEASE AND EVEN QUITE INTERESTING VIEWED AS PHILOSOPHICAL PARABLE AND REFLECTIONS ON SELFHOOD THE ENDING IS CHEAP AND CONTRIVED AS FICTION IF IT IS FICTION IT HAS NO MERIT AT ALL BY SHORTLISTING IT THIS YEAR'S JUDGES HAVE REVEALED THAT THEY CANNOT TELL A NOVEL FROM A NOTEBOOK AND THEIR COMPLETE INEPTITUDE FOR THE JOB THEY UNWISELY AGREED TO DO 9310270155 931027 POLITICS & POLICY PERSONAL MEDICAL EXPERIENCES OF CLINTON'S AIDES PARTLY SHAPED HEALTH BILL HEADING TO CONGRESS BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ONE EVENING A WHITE HOUSE ADVISER WORKING ON THE ADMINISTRATION'S HEALTHCARE PLAN HEARD A WEARY PRESIDENT CLINTON GRUMBLE ABOUT FATIGUE DON'T WORRY MR PRESIDENT THE AIDE ASSURED HIS BOSS NARCOLEPSY WILL BE COVERED IT WAS JUST A BIT OF HEALTHCARE HUMOR BUT IN FACT THE PUSH FOR THE SWEEPING LEGISLATION FOR UNIVERSAL HEALTH COVERAGE THAT MR CLINTON WILL SEND TO CONGRESS TODAY PARTLY REFLECTS THE PERSONAL ACHES PAINS AND HEALTHCARE EXPERIENCES OF THE OFFICIALS INVOLVED IN THE DECISIONMAKING AT A MEETING IN THE ROOSEVELT ROOM OF THE WHITE HOUSE THIS YEAR EXPERTS DRONED ON FOR HOURS ABOUT THE ECONOMIES OF SCALE AND THE BILLIONS OF DOLLARS THAT COULD BE SAVED OVER THE LONG RUN FROM INCLUDING MENTALHEALTH SERVICES IN HEALTHCARE REFORM FINALLY BOB BOORSTIN AN OFFICIAL IN THE WHITE HOUSE COMMUNICATIONS OFFICE COULDN'T STAND THE MINDNUMBING ABSTRACTIONS ANYMORE MR BOORSTIN LEANED ACROSS THE TABLE TO MR CLINTON VICE PRESIDENT AL GORE HILLARY RODHAM CLINTON AND TIPPER GORE HE REMINDED THEM OF THE PSYCHOTIC MANIC EPISODE THAT HAD LANDED HIM IN THE HOSPITAL FOR THREE WEEKS IN 1988 RESULTING IN A 14000 BILL THAT HE SAID IS ABOUT THE PRICE OF THE PREVENTIVE TREATMENT HE HAS RECEIVED FOR THE PAST THREE YEARS TO AVOID ANOTHER EPISODE MAKE THE INVESTMENT UP FRONT IN PREVENTIVE CARE HE IMPLORED AND YOU WILL AVOID COSTLY HOSPITAL BILLS WHILE HIS OUTBURST WASN'T THE ONLY REASON MENTALHEALTH TREATMENT IS INCLUDED IN THE PACKAGE OF BENEFITS THAT MR CLINTON IS PROPOSING SUCH PERSONAL EXPERIENCES MR BOOSTIN SAYS HELP CRYSTALIZE COMPLEX HEALTHCARE ISSUES IT'S HARD TO IDENTIFY WITH BILLIONS OF DOLLARS IT'S EASIER TO IDENTIFY WITH SOMEONE PAYING 14000 TO BE IN THE HOSPITAL FOR THREE WEEKS HE EXPLAINS THE MEDICAL WAR STORIES ARE SURE TO CONTINUE AS THE DEBATE MOVES TO CAPITOL HILL HOUSE MAJORITY LEADER RICHARD GEPHARDT OF MISSOURI SAYS HE WANTS ALL AMERICANS TO HAVE THE KIND OF EXPERT MEDICAL CARE THAT SAVED THE LIFE OF HIS THENINFANT SON WHO WENT ON TO GRADUATE FROM COLLEGE LAST SPRING SENATE REPUBLICAN LEADER ROBERT DOLE OF KANSAS OFTEN REFERS TO EARLY DETECTION AND SUCCESSFUL TREATMENT OF HIS PROSTATE CANCER TO ARGUE FOR PREVENTIVE CARE BUT SEN DOLE BACKS THE GOP HEALTHCARE PLAN NOT PRESIDENT CLINTON'S INDEED PERSONAL EXPERIENCES ALSO ARE USED TO CHALLENGE THE CLINTON PLAN ILLINOIS GOP REP DENNIS HASTERT AT ONE HEARING WITH MRS CLINTON TOLD ABOUT A YOUNG MAN ON HIS STAFF WHO WAS DIAGNOSED WITH CANCER HE FOUND A DOCTOR AT THE UNIVERSITY OF INDIANA ANOTHER STATE THAT HE WAS ABLE TO GO TO AND WAS CURED MR HASTERT RECOUNTED IF YOU SIGN UP WITH A PLAN IN ILLINOIS UNDER THE CLINTON PLAN HE ASKED COULD SUCH PEOPLE STILL GO TO A SPECIALIST OF THEIR CHOICE MRS CLINTON INSISTED THAT PEOPLE COULD NOT EVERYBODY IS PLEASED WITH SUCH PERSONALIZING LEGISLATION BY ANECDOTE IS NOT NECESSARILY WISE POLICY SAYS REP JIM COOPER THE TENNESSEE DEMOCRAT IS SPONSORING AN ALTERNATIVE HEALTH BILL BUT SHIES AWAY FROM DISCUSSING HIS OWN FAMILY HEALTH TROUBLES YET THE PERSONAL TOUCH SEEMS UNAVOIDABLE WHILE MANY A FEDERAL OFFICIAL OR LAWMAKER WHO FORMULATES AGRICULTURAL POLICY NEVER TILLED A FIELD JUST ABOUT EVERYBODY HAS THEIR OWN STORIES ABOUT DEALING WITH DOCTORS HOSPITALS AND INSURANCE IRA MAGAZINER THE WHITE HOUSE OFFICIAL WHO RAN THE DAILY OPERATIONS OF MRS CLINTON'S HEALTHCARE TASK FORCE OFTEN MAKES THE POINT THAT MEDICAL TECHNOLOGY CAN SAVE MONEY BY CITING HIS OWN KNEE SURGERY SEVERAL YEARS AGO WHICH REQUIRED HOSPITALIZATION BUT WHICH NOW CAN BE DONE AS A CHEAPER OUTPATIENT PROCEDURE HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA ONE OF THE FIERCEST ADVOCATES OF INCLUDING ABORTION COVERAGE IN THE BASIC HEALTH BENEFITS PACKAGE IS HAUNTED BY THE MEMORY OF A CLASSMATE AT SYRACUSE UNIVERSITY WHO NEARLY DIED FROM A SELFINDUCED ABORTION IN THE 1960S SOME ADMINISTRATION HEALTH AIDES HAVE BEEN VICTIMS OF THE VERY INEQUITIES IN THE CURRENT HEALTH SYSTEM THAT THE CLINTON PROPOSAL SEEKS TO REMEDY WALTER ZELMAN A WHITE HOUSE HEALTH AIDE WAS DIAGNOSED WITH A MILD FORM OF SKIN CANCER SIX YEARS AGO WHEN HE LEFT HIS JOB TO BECOME AN INDEPENDENT CONSULTANT TO THE CALIFORNIA INSURANCE COMMISSIONER HE COULDN'T BUY A HEALTH POLICY THAT WOULD PAY FOR THE PERIODIC TREATMENT OF HIS CONDITION I FOUND THE THING I NEEDED COVERAGE FOR THE MOST I COULDN'T GET MR ZELMAN SAYS THE CLINTON PLAN WOULD BAR INSURERS FROM DENYING COVERAGE FOR SOCALLED PREEXISTING CONDITIONS THE WHITE HOUSE PROPOSAL ALSO WOULD GUARANTEE A COMPREHENSIVE HEALTH BENEFITS PACKAGE TO EVERYONE NO MATTER IF THEY LOST OR CHANGED JOBS THAT WOULD BE A HUGE RELIEF TO LOIS QUAM A MINNESOTA STATE HEALTH OFFICIAL WHO TOOK A LEAVE FROM HER JOB TO WORK WITH THE WHITE HOUSE HEALTHREFORM TASK FORCE MS QUAM HAS THREE YOUNG SONS TWO OF WHOM HAVE ASTHMA ONE HAS BEEN HOSPITALIZED FOUR TIMES DURING HIS TWO YEARS OF LIFE BOTH SONS GET EAR INFECTIONS ALL THE TIME ONE OF THE BOYS EVEN VOMITED DURING MR CLINTON'S BIG SPEECH TO CONGRESS UNVEILING THE HEALTH PLAN TO MAKE SURE THEY HAVE THE MEDICAL COVERAGE THEY NEED MS QUAM SAYS THAT UNDER THE CURRENT SYSTEM MY HUSBAND OR I ALWAYS HAVE TO WORK FOR THE STATE OF MINNESOTA OR A BIG COMPANY IT REALLY FACTORS INTO OUR DECISIONS IN SOME CASES PERSONAL EXPERIENCES ALSO RAISE DOUBTS ABOUT THE NEED FOR CHANGE BRUCE VLADECK HEAD OF THE FEDERAL AGENCY THAT RUNS MEDICARE AND MEDICAID GOT AN UPCLOSE TASTE OF THE HEALTHCARE SYSTEM HE'S LABORING TO FIX WHEN HE WAS HOSPITALIZED WITH PNEUMONIA LAST MONTH JUST BEFORE PRESIDENT CLINTON'S HEALTHCARE SPEECH TO CONGRESS LYING IN HIS BED AT GEORGETOWN UNIVERSITY HOSPITAL TENDED TO BY TOPNOTCH DOCTORS AND NURSES HE WONDERED HOW CONFIDENT AM I THAT WHAT WE ARE DOING ISN'T GOING TO SCREW UP WHAT IS GOOD IN THIS SYSTEM HE DECIDED THAT HE WAS DOING THE RIGHT THING KENNETH THORPE AN HHS ECONOMIST WHO OVERSAW THE HEALTH TEAM'S MASSIVE NUMBERSCRUNCHING OPERATION IS DEMONSTRATING HIS FAITH THAT ADVANCING TECHNOLOGY WILL IMPROVE CARE AND LOWER COSTS MORE THAN A DECADE AGO MR THORPE HURT HIS KNEE PLAYING FOOTBALL AND HAD SURGERY TO REPAIR RIPPED CARTILAGE A YEAR AND A HALF AGO HE WENT BACK TO THE DOCTOR WITH THREE TORN LIGAMENTS IN THE SAME KNEE HE HAD A CHOICE DO A TOTAL KNEE REPLACEMENT OR WAIT ABOUT FIVE YEARS WHEN MEDICAL TECHNOLOGY WILL ALMOST CERTAINLY HAVE EVOLVED TO THE POINT WHERE DOCTORS CAN SIMPLY FIX THE LIGAMENTS HE'S WAITING 9310270154 931027 TECHNOLOGY MOTOROLA ASKS FCC TO BAR COMSAT FROM PHONE FIELD BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL COMSAT CORP SAID IT EXPECTS TO PREVAIL IN A REGULATORY DISPUTE WITH MOTOROLA INC OVER COMSAT'S LEGAL RIGHT TO PROVIDE COMPETING SATELLITEPHONE SERVICES IN A PETITION FILED FRIDAY WITH THE FEDERAL COMMUNICATIONS COMMISSION MOTOROLA SATELLITE COMMUNICATIONS INC SAID THE 1978 CONGRESSIONAL ACT ESTABLISHING COMSAT AS A MEMBER OF THE INTERNATIONAL MARITIME SATELLITE ORGANIZATION OR INMARSAT DOESN'T ALLOW IT TO PARTICIPATE IN A SATELLITEPHONE SYSTEM MOREOVER THE PETITION SAID INMARSAT WOULD HAVE UNFAIR ADVANTAGES OVER NONINMARSAT PRIVATE COMPANIES IN PROVIDING SUCH A SERVICE IN PART BECAUSE IT HAS FREE ACCESS TO A HUGE AMOUNT OF RADIO SPECTRUM AND DOESN'T PAY ANY TAXES OR DUTIES MOTOROLA OWNS 34 OF IRIDIUM INC AN INTERNATIONAL CONSORTIUM THAT PLANS TO BUILD BY 1998 A 34 BILLION SATELLITE SYSTEM PROVIDING PHONE DATA FAX AND LOCATION SERVICES WORLDWIDE VIA SMALL HANDHELD RECEIVERS COMSAT OWNS 25 OF INMARSAT A CONSORTIUM OF 71 NATIONS FORMED TO PROVIDE RADIO COMMUNICATION AND LOCATION SERVICES TO SHIPS AT SEA THE TWO COMPANIES HAVE ENGAGED IN AN INCREASINGLY BITTER FIGHT OVER EACH OTHER'S TACTICS AND THE TECHNICAL MERITS OF THEIR COMPETING PLANS INMARSAT PLANS TO DECIDE IN FEBRUARY ON THE PARAMETERS OF ADDING A SATELLITE SYSTEM AT A COST OF 1 BILLION TO 2 BILLION TO PROVIDE SERVICES SIMILARSE PROPOSED BY IRIDIUM ON HANDHELD UNITS IN ITS PETITION MOTOROLA SAID FEDERAL LAW DOES NOT EXPRESSLY AUTHORIZE COMSAT TO PROVIDE NONMARITIME SERVICES MOREOVER ROBERT KINZIE IRIDIUM'S CHIEF EXECUTIVE OFFICER SAID WE BELIEVE INMARSAT HAS PRIVILEGED ACCESS TO FREQUENCY SPECTRUM TO COST SAVINGS AND TO TAXFREE STATUS WHICH CAN'T BE DUPLICATED BY ANY US COMPANY UNTIL THE PLAYING FIELD IS LEVEL WE HAVE TO JUST KEEP ON TRYING TO LEVEL IT IN BETHESDA MD RON MARIO PRESIDENT OF COMSAT'S MOBILE COMMUNICATIONS DIVISION SAID THE FCC ALREADY HAS AUTHORIZED COMSAT AND INMARSAT TO MOVE BEYOND MARITIME SERVICES HE SAID FEDERAL LAW DOESN'T PROHIBIT COMSAT FROM PROVIDING SATELLITE PHONE SERVICE AND THAT INMARSAT'S TAXFREE STATUS IS A PHONY ISSUE MR MARIO SAID INMARSAT WAS STRUCTURED SIMILARLY TO ANY PRIVATE US PARTNERSHIP SEEKING TO AVOID DOUBLE TAXATION AND THAT COMSAT PAYS TAXES AS A PRIVATE COMPANY HE ALLEGED THAT IRIDIUM IS ALSO BEING SET UP AS SUCH A PARTNERSHIP BUT AN IRIDIUM SPOKESMAN SAID THIS CLAIM IS INCORRECT THAT IRIDIUM IS INCORPORATED AND WOULD PAY TAXES 9310270153 931027 SA BREWING TO CHANGE NAME ADELAIDE AUSTRALIA SA BREWING HOLDINGS LTD OF AUSTRALIA SAID IT PLANS TO CHANGE ITS NAME TO SOUTHCORP HOLDINGS LTD AND INTRODUCE A NEW LOGO SA BREWING SAID THAT BECAUSE OF ITS DIVERSIFICATION INTO MAKING WATER HEATERS AND APPLIANCES AND WINE PRODUCING AND PACKAGING AND BECAUSE IT HAS SHED ITS BREWING ASSETS IT NEEDS A NAME THAT REFLECTS THOSE CHANGES 9310270151 931027 WHO'S NEWS RUBBERMAID INC RUBBERMAID INC WOOSTER OHIO JOSEPH G MEEHAN 61 YEARS OLD SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MAKER OF PLASTIC AND RUBBER PRODUCTS WILL RETIRE IN MARCH 1994 HE HAS HELD THIS POST SINCE HE JOINED THE COMPANY IN 1980 IN A STATEMENT RUBBERMAID SAID IT INTENDS TO ELECT GEORGE C WEIGAND 42 CURRENTLY VICE PRESIDENT AND CORPORATE CONTROLLER TO FILL THE FINANCIAL CHIEF POSITION AT THE TIME OF MR MEEHAN'S RETIREMENT 9310270149 931027 INTERNATIONAL JR EAST'S RISE DOESN'T SPUR TOKYO STOCKS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S GREAT RAILWAY PRIVATIZATION TOOK OFF LIKE A ROCKET FAST ENOUGH TO SPARK FEARS THAT THE ISSUE MAY BACKFIRE ON THE STOCK MARKET SHARES OF EAST JAPAN RAILWAY CO OR JR EAST JUMPED 58 OR 220000 YEN 202576 TO CLOSE AT 600000 YEN 552480 APIECE IN THE FIRST DAY OF TRADING TUESDAY TOTAL MARKET CAPITALIZATION OF JR EAST ROSE ABOUT 4 BILLION TO 11 BILLION FOR JAPAN'S FIRST PRIVATIZATION SINCE 1986 SHARES WERE OVERSUBSCRIBED 75 TIMES LEADING MANY TRADERS TO CONCLUDE THAT THE OFFERING WAS MISPRICED THE DEMAND KEPT THE TOKYO STOCK EXCHANGE OPEN AN EXTRA 30 MINUTES WHILE OFFICIALS SCRAMBLED TO FIX A PRICE FOR THE STOCK THE STOCK WAS HOT SAID HIROYUKI FUKUSHIMA EQUITY SALES MANAGER AT NIKKO SECURITIES CO WHO PREDICTED IT COULD GO TO 750000 YEN THIS YEAR FOR ALL OF THE HEAT JR EAST DIDN'T FIRE THE REST OF THE MARKET DESPITE HOPES THAT A POPULAR NEW STOCK WOULD PROMPT AN OVERALL RALLY THE NIKKEI STOCK AVERAGE CLOSED AT 2002360 DOWN 28573 UNFORTUNATELY JR EAST LEFT THE THOUSANDODD OTHER COMPANIES IN THE MARKET ON THE PLATFORM SAID ANDREW MCGRATH STRATEGIST AT CREDIT SUISSE PEOPLE WERE EXPECTING TO SEE A LONGAWAITED MARKET RALLY ON THIS STOCK AND IT DIDN'T HAPPEN THE BIG GAIN ALSO RAISED CONCERNS THAT JR EAST MAY ALREADY HAVE PEAKED IT'S GONE UP TOO SHARPLY PEOPLE WILL WAKE UP WITH A HANGOVER SAID LAURENT DEL GRANDE ANALYST AT KLEINWORT BENSON INTERNATIONAL INC IT WAS FAIR VALUE AROUND WHERE IT STARTED OR 380000 YEN A SHARE HE SAID A PRICE PLUNGE WOULD BE BAD NEWS FOR THE MARKET JR EAST IS THE FIRST JAPANESE NATIONAL ASSET TO GO ON SALE SINCE NIPPON TELEGRAPH & TELEPHONE CORP NTT'S INVESTORS HAVE BEEN ON A ROLLERCOASTER RIDE MOST OF IT DOWN RATHER THAN UP LEAVING MANY INVESTORS WITH A FRACTION OF THEIR INITIAL NTT INVESTMENT THEIR LOSSES WERE BLAMED FOR DRIVING THE SMALL INVESTOR FROM THE TOKYO MARKET THE GOVERNMENT WANTED A SUCCESSFUL LAUNCH OF JR EAST TO RENEW INDIVIDUALS' INTEREST IN THE MARKET AND TO RAISE FUNDS THROUGH THE SALE OF OTHER PROPERTIES SUCH AS JAPAN TOBACCO INC AND WEST JAPAN RAILWAYS CO NIKKO'S MR FUKUSHIMA SAID THAT HE BELIEVES THE STOCK WILL REMAIN POPULAR WITH INSTITUTIONAL INVESTORS HOWEVER AND THAT THE RISE IN JR EAST WILL EVENTUALLY SUPPORT THE REST OF THE MARKET INSTITUTIONS HAVE TO BUY THIS FOR THEIR INDEX PORTFOLIOS HE SAID ADDING THAT INDIVIDUALS WHO DO SELL IT WILL MOVE THEIR PROFITS INTO OTHER STOCKS ON AT LEAST ONE COUNT BRINGING NEW MONEY INTO THE MARKET JR EAST MAY HAVE BEEN A FLOP BOTH NTT THE MOST WIDELY HELD STOCK AND THE POPULAR LOWPRICED STOCKS IN JAPAN'S OVERTHECOUNTER MARKET WERE SHARPLY LOWER IN THE PAST SEVERAL DAYS ANALYSTS INTERPRETED THAT TO MEAN THE MONEY CHASING JR EAST ON TUESDAY WAS MONEY ALREADY INVESTED IN STOCKS JR EAST OFFICIALS SAID THEY WERE HAPPY WITH THE SALE EVEN THOUGH THE COMPANY SOLD ITS TWO MILLION SHARES OR ABOUT 50 OF ITS TOTAL HOLDINGS AT APPARENTLY FAR LESS THAN THE FAIR MARKET VALUE THE MONEY FROM THE SALE WILL GO TOWARD PAYING OFF JR EAST'S FIVE TRILLION YEN DEBT THE INITIAL BIDDING TO DETERMINE THE 380000 YEN A SHARE PRICE WAS CARRIED OUT IN A FAIR WAY SAID MASANOBU ISHIDO DEPUTY DIRECTOR GENERAL OF STOCK FLOTATION AT JNR SETTLEMENT CORP WHICH OVERSAW THE SALE 9310270147 931027 INTERNATIONAL PILOTS AIRPORT WORKERS WALK OUT ON AIR FRANCE PARIS THE STRIKE AGAINST AIR FRANCE WORSENED YESTERDAY AS PILOTS AND AIRPORT WORKERS JOINED GROUND CREWS IN THEIR WALKOUT BUT THERE WAS HOPE THE WEEKLONG CHAOS WOULD ABATE TODAY IN THE WAKE OF THE GOVERNMENT'S DECISION SUNDAY TO SCRAP THE AIRLINE'S RESTRUCTURING EFFORT WHICH CALLED FOR JOB AND PAY CUTS PILOTS AND AIRPORT WORKERS ARE EXPECTED TO RETURN TO WORK TODAY ALTHOUGH AIRLINE OFFICIALS SAID THEY WEREN'T SURE IF GROUND CREWS WOULD ABIDE BY THEIR UNION LEADERS' REQUEST TO END THE STRIKE INDEED CARGO WORKERS VOTED YESTERDAY TO EXTEND THEIR WALKOUT AIR FRANCE FACED WITH CONTINUED UNCERTAINTY PLANS TO FLY ONLY 35 FLIGHTS WEDNESDAY COMPARED WITH MORE THAN 500 ON A TYPICAL WEEKDAY MEANWHILE TODAY MARKS THE FIRST OFFICIAL DAY ON THE JOB FOR CHRISTIAN BLANC THE MAN PICKED BY THE CONSERVATIVE GOVERNMENT TO SUCCEED BERNARD ATTALI AS AIR FRANCE CHAIRMAN MR ATTALI RESIGNED SUNDAY AFTER TRANSPORT MINISTER BERNARD BOSSON WITHDREW HIS SUPPORT FOR MR ATTALI'S RESTRUCTURING PLAN WIDELY SEEN AS A MR FIXIT MR BLANC IS CHARGED WITH STEMMING THE AIRLINE'S LOSSES WHILE AVOIDING ANY LAYOFFS 9310270146 931027 RPM CLOSES STONHARD PURCHASE MEDINA OHIO RPM INC SAID IT COMPLETED THE ACQUISITION OF STONHARD INC A MAKER OF INDUSTRIAL AND COMMERCIAL POLYMER FLOORING AND RELATED PRODUCTS TERMS WEREN'T DISCLOSED THE COMPANY SAID STONHARD WHICH HAD SALES LAST YEAR OF 100 MILLION WILL CONTINUE TO OPERATE UNDER ITS CURRENT MANAGEMENT RPM MAKES INDUSTRIAL COATINGS AND SEALANTS FOR WATERPROOFING AND GENERAL MAINTENANCE CORROSION CONTROL AND OTHER SPECIALTY CHEMICAL APPLICATIONS AS WELL AS DOITYOURSELF PRODUCTS FOR HOMEMAINTENANCE AUTOREPAIR AND CONSUMERHOBBY MARKETS 9310270145 931027 INTERNATIONAL ISRAEL SAYS PACT IS PENDING FOR PERSIAN GULF PIPELINE TEL AVIV ISRAELI ENERGY MINISTER MOSHE SHAHAL SAID THAT AN AGREEMENT TO CONSTRUCT A NATURALGAS PIPELINE TO ISRAEL FROM A PERSIAN GULF STATE WILL BE SIGNED BY EARLY DECEMBER FLYING IN THE FACE OF THE ARAB BOYCOTT AGAINST DOING BUSINESS WITH ISRAEL THE CONSTRUCTION OF THE PIPELINE WILL BE A JOINT VENTURE BETWEEN THE GULF STATE AND ISRAEL AN ENERGY MINISTRY SPOKESMAN SAID SPEAKING AT A CONFERENCE HELD EARLIER THIS WEEK ON ENERGY IN THE ERA OF PEACE MR SHAHAL REFUSED TO IDENTIFY THE COUNTRY ISRAELI NEWS REPORTS SAY IT IS QATAR MR SHAHAL SAID THE PIPELINE WHICH WILL COST BETWEEN 16 BILLION TO 18 BILLION TO BUILD WILL BEGIN OPERATING WITHIN THREE YEARS IT WOULD RUN FROM THE GULF TO THE ISRAELI PORTS OF EILAT ASHDOD AND ASHKELON AND FROM THERE TO GREECE AND ON TO EUROPE REPRESENTATIVES OF ISRAELI OIL AND GAS COMPANIES ATTENDING THE MEETING SAID THEY DOUBTED THAT AN AGREEMENT WOULD BE SIGNED SO QUICKLY A MULTINATIONAL OIL COMPANY ALSO IS PARTICIPATING IN THE VENTURE THE ENERGY MINISTRY SPOKESMAN SAID REFUSING TO IDENTIFY IT BY NAME 9310270144 931027 BUSINESS BRIEFS OFFICEMAX INC A UNIT OF KMART CORP ACQUIRED A 175 STAKE IN CORPORATE EXPRESS INC A DENVERBASED STATIONER FOR 235 MILLION FEDERALMOGUL CORP COMPLETED THE ACQUISITION OF THE SEALED POWER REPLACEMENT DIVISION OF SPX CORP EARLIER VALUED AT 150 MILLION STANDARD FEDERAL BANK HAS AGREED TO ACQUIRE CENTRAL HOLDING CO FOR 213 MILLION OR 550 A SHARE TERRA INDUSTRIES INC AGREED TO ACQUIRE UPJOHN CO'S ASGROW FLORIDA CO UNIT A DISTRIBUTOR OF CROP PROTECTION PRODUCTS AND SEEDS SECURITY ENVIRONMENTAL SYSTEMS INC GOT A 42 MILLION CONTRACT FROM THE DEPARTMENT OF DEFENSE TO REMOVE HAZARDOUS MATERIALS FROM MARE ISLAND AND CONCORD NAVAL WEAPONS STATION TWO NORTHERN CALIFORNIA MILITARY BASES 9310270143 931027 JAPAN ESCAPES US SANCTIONS OFFERING PLAN TO OPEN UP PUBLICWORKS MARKET BY WALL STREET JOURNAL REPORTERS BOB DAVIS IN WASHINGTON AND JATHON SAPSFORD IN TOKYO THE US POSTPONED PLANS TO IMPOSE TRADE SANCTIONS ON JAPANESE CONSTRUCTION COMPANIES AFTER THE TOKYO GOVERNMENT INTRODUCED A PROGRAM TO OPEN FURTHER THE NATION'S 300 BILLION PUBLICWORKS MARKET TO FOREIGN BIDDERS US TRADE REPRESENTATIVE MICKEY KANTOR CALLED THE JAPANESE PLAN A TREMENDOUS STEP IN THE RIGHT DIRECTION AND ADDED THAT IT WOULD HAVE BEEN NOT RESPONSIBLE TO INVOKE SANCTIONS AT A TIME WHEN WE HAD SUCH GREAT MOVEMENT ON THE PART OF THE JAPANESE GOVERNMENT THE PUBLIC EMBRACE OF PRIME MINISTER MORIHIRO HOSOKAWA'S PACKAGE REPRESENTS A CALCULATION BY THE CLINTON ADMINISTRATION THAT US INTERESTS ARE BEST SERVED BY COURTING AND ENCOURAGING THE NEW JAPANESE GOVERNMENT RATHER THAN CONFRONTING IT AT THE SAME TIME ADMINISTRATION OFFICIALS HAVE BEEN IMPRESSED BY JAPAN'S SERIOUSNESS IN TRYING TO ROOT OUT CORRUPTION IN THE JAPANESE CONSTRUCTION BUSINESS WHICH HAS EFFECTIVELY FROZEN OUT MANY JAPANESE AS WELL AS FOREIGN COMPANIES FROM PUBLICWORKS PROJECTS TOKYO PROSECUTORS YESTERDAY ARRESTED ANOTHER TOP EXECUTIVE AT A LEADING CONTRACTOR ON SUSPICIONS OF BRIBING A REGIONAL POLITICIAN THE LATEST TARGET KAJIMA CORP SENIOR VICE PRESIDENT SHINJI KIYOYAMA IS REPUTED TO BE ONE OF THE CONSTRUCTION INDUSTRY'S MAIN FIXERS THE ALLEGED POINT MAN FOR THE VERY BIDRIGGING THAT THE US GOVERNMENT AND INDUSTRY HAVE LONG COMPLAINED IS RAMPANT IN JAPAN NEVERTHELESS THE US OFFICIALS HAVE HARDLY RENOUNCED ARMTWISTING IN THE CONSTRUCTION DISPUTE THE US WAS TO ANNOUNCE A DECISION NEXT MONDAY ON WHETHER TO IMPOSE TRADE SANCTIONS WHICH WERE EXPECTED TO INCLUDE RESTRICTIONS ON JAPANESE BIDDING IN THE US MR KANTOR SAID YESTERDAY THAT THE US POSTPONED THE DECISION UNTIL JAN 20 TO GIVE THE JAPANESE GOVERNMENT TIME TO FLESH OUT THE DETAILS OF ITS PROPOSAL IN ADDITION US EMBASSY OFFICIALS IN TOKYO WERE PLANNING TO INFORM THEIR JAPANESE COUNTERPARTS THAT THE US EXPECTS JAPAN TO INCLUDE IN ITS PROPOSALS A BROAD SYSTEM FOR MEASURING FOREIGN COMPANIES' MARKET SHARE IN THE JAPANESE PUBLICWORKS SECTOR THE US WANTS THE JAPANESE TO AGREE TO MEASURE SUCH THINGS AS THE NUMBER OF CONTRACTS AWARDED TO FOREIGNERS THE TOTAL VALUE OF THOSE CONTRACTS AND THE NUMBER OF FOREIGN ENGINEERS EMPLOYED IN PUBLICWORKS PROJECTS THE US HOWEVER ISN'T INSISTING THAT THE JAPANESE AGREE TO SET ASIDE ANY SPECIFIC PORTION OF THE MARKET FOR FOREIGN BIDDERS UNDER SEPARATE FRAMEWORK TALKS WHICH ARE BEING CONDUCTED AT THE SAME TIME AS THE CONSTRUCTION NEGOTIATIONS THE US IS INSISTING ON SPECIFIC NUMERICAL TARGETS IN A RANGE OF INDUSTRIES IN THE AUTO SECTOR FOR INSTANCE THE US HASN'T YET DETERMINED THE TARGETS BUT LAST WEEK IT PROPOSED THAT THE TWO COUNTRIES AGREE TO MEASURE JAPANESE IMPORTS OF FOREIGN AUTOS AND AUTO PARTS IN ADDITION THE TWO SIDES WOULD MONITOR AUTOPARTS PURCHASES BY SOCALLED JAPANESE TRANSPLANTS JAPANESE CAR COMPANIES THAT HAVE SET UP FACTORIES IN THE US THE US PROPOSAL WOULD KEEP SEPARATE COUNTS ON PURCHASES MADE FROM TRADITIONAL SUPPLIERS BASED IN THE US AS OPPOSED TO JAPANESE AUTOPARTS SUPPLIERS THAT HAVE MOVED TO THE US WE WANT TO INSURE THAT THERE IS NO DISCRIMINATION AGAINST USOWNED AUTOPARTS COMPANIES AS WELL AS OTHER NONJAPANESE COMPANIES A SENIOR ADMINISTRATION OFFICIAL SAID JAPANESE AUTO MAKERS HAVE PLEDGED TO SHARPLY INCREASE THEIR PURCHASES OF FOREIGN AUTO PARTS AND SAID THEY WOULD BUY 19 BILLION OF US AUTO PARTS IN THE YEAR ENDING MARCH 31 1994 THE US INTENDS TO ASK JAPAN TO INCREASE THAT AMOUNT IN LATER YEARS US OFFICIALS SAID BUT IT HASN'T YET TOLD JAPAN WHAT AMOUNT IT IS SEEKING EVEN SO JAPANESE NEGOTIATORS ALREADY HAVE OBJECTED TO US EFFORTS CONTENDING THAT THE ATTEMPT TO DISTINGUISH BETWEEN JAPANESE AUTOPARTS TRANSPLANTS AND THEIR US COMPETITORS VIOLATES A HOST OF INTERNATIONAL AGREEMENTS AND EVEN THE US CONSTITUTION'S 14TH AMENDMENT GUARANTEEING EQUAL PROTECTION UNDER THE LAW JAPANESE PUBLICWORKS PROJECTS HAVE REQUIRED BIDDERS TO BE DESIGNATED BY GOVERNMENT AUTHORITIES FOREIGN COMPANIES COMPLAIN THAT SUCH DESIGNATIONS ARE GIVEN ARBITRARILY AND HAVE BEEN USED TO EXCLUDE THEM AND JAPANESE COMPANIES THAT LACK POLITICAL CLOUT THE JAPANESE PLAN PROMISES TO MAKE THE BIDDING OPEN AND COMPETITIVE AND WOULD PROVIDE MOREEXPLICIT GUIDELINES EXPLAINING HOW BIDS ARE AWARDED THE NEW RULES WOULD REPORTEDLY APPLY TO PROJECTS VALUED AT 700 MILLION YEN 64 MILLION OR MORE IN ADDITION THE PLAN WOULD EASE THE REQUIREMENTS FOR FOREIGN COMPANIES TO QUALIFY FOR PROJECTS BY TAKING INTO ACCOUNT THEIR EXPERIENCE OVERSEAS NOT JUST THEIR LIMITED EXPERIENCE IN JAPAN THE GOVERNMENT ALSO VOWED TO CRACK DOWN FURTHER ON COLLUSION BETWEEN JAPANESE CONSTRUCTION COMPANIES BUT TOKYOBASED EXECUTIVES OF US CONSTRUCTION COMPANIES WHICH HAVE WON LITTLE BUSINESS IN JAPAN DESPITE FIVE YEARS OF BILATERAL TRADE AGREEMENTS WERE LUKEWARM TO THE LATEST JAPANESE MOVES ONE US BUSINESSMAN SAID THAT ALTHOUGH THE PROPOSAL MAY HELP IMPROVE THE BIDDING PROCESS IT WASN'T SPECIFIC ENOUGH AND MIGHT NOT OPEN THE DOORS TO US CONTRACTORS 9310270142 931027 CORTECH SELLS COMMON STOCK DENVER CORTECH INC SAID IT COMPLETED A PUBLIC OFFERING OF 2350000 COMMON SHARES AT 15 EACH A COMPANY SPOKESWOMAN SAID PROCEEDS WILL BE USED FOR RESEARCH AND DEVELOPMENT WORKING CAPITAL AND GENERAL CORPORATE PURPOSES THE PHARMACEUTICAL COMPANY HAD 143 MILLION SHARES OUTSTANDING PRIOR TO THE OFFERING THE COMPANY SAID ITS UNDERWRITERS MONTGOMERY SECURITIES AND HAMBRECHT & QUIST INC WERE GRANTED AN OPTION TO BUY AN ADDITIONAL 352500 SHARES TO COVER OVERALLOTMENTS 9310270141 931027 INTERNATIONAL MATSUSHITA AND SHARP BOTH REPORT DECLINES IN RESULTS FOR 1ST HALF SPECIAL TO THE WALL STREET JOURNAL TOKYO TWO MAJOR JAPANESE CONSUMERELECTRONICS CONCERNS REPORTED DECLINES IN FIRSTHALF UNCONSOLIDATED PRETAX PROFIT MATSUSHITA ELECTRIC INDUSTRIAL CO SAID PRETAX PROFIT PLUNGED 43 TO 2969 BILLION YEN 2734 MILLION IN ITS FIRST HALF ENDED SEPT 30 MATSUSHITA CITED THE ECONOMIC SLOWDOWN WHICH IT SAID WORSENED BEYOND THE COMPANY'S EXPECTATIONS AND THE YEN'S APPRECIATION PROFIT FOR THE YEAREARLIER PERIOD WAS 5232 BILLION YEN SHARP CORP SAID PRETAX PROFIT FOR THE SAME PERIOD FELL 23 TO 2018 BILLION YEN FROM A YEAREARLIER 2628 BILLION YEN SALES AT MATSUSHITA FELL 64 TO 2148 TRILLION YEN 1978 BILLION FROM 2294 TRILLION YEN WHILE SHARP'S SALES DECLINED 14 TO 57525 BILLION YEN FROM 58357 BILLION YEN FOR THE YEAR ENDING MARCH 31 MATSUSHITA SAID IT EXPECTS EARNINGS TO FALL BELOW THE PRIOR YEAR'S AND CITED THE SLUGGISH ECONOMY SHARP SAID THE PROTRACTED NATURE OF THE ECONOMIC SLOWDOWN AS WELL AS THE YEN'S STRENGTH AND A FALLOFF IN CORPORATE INVESTMENT IN PLANTS AND EQUIPMENT WOULD DEPRESS FISCALYEAR EARNINGS 9310270140 931027 MICHELIN TO GIVE CASH TO UNIT PARIS FRENCH TIRE MAKER MICHELIN SA WILL INJECT TWO BILLION FRANCS 3403 MILLION IN FRESH CAPITAL TO ITS MANUFACTURING ARM LOCATED IN CENTRAL FRANCE THIS IS STRICTLY AN INTERNAL OPERATION A SPOKESWOMAN SAID STRESSING THAT MICHELIN WON'T BE SEEKING CASH FOR THE INFUSION THROUGH THE FINANCIAL MARKETS THE CAPITAL INCREASE WILL COME FROM THE COFFERS OF CIE FINANCIERE DE MICHELIN THE FINANCING UNIT OF THE MICHELIN GROUP AND WILL TAKE PLACE BY THE END OF THE YEAR SHE SAID MICHELIN LAST MONTH ANNOUNCED A FIRSTHALF GROUP NET LOSS OF 319 BILLION FRANCS ALTHOUGH THE CASH INJECTION ISN'T A CAPITAL INCREASE OPERATION THE MARKET REACTED NEGATIVELY BY POUNDING MICHELIN SHARES SIX FRANCS OR 32 LOWER TO 179 FRANCS 9310270139 931027 REX STORES SLATES EXPANSION DAYTON OHIO REX STORES CORP SAID IT WILL OPEN 21 NEW STORES BY JAN 31 THE END OF ITS FISCAL YEAR MOST OF THE CONSUMER ELECTRONICS AND APPLIANCE STORES WILL OPEN THE DAY AFTER THANKSGIVING TO TAKE ADVANTAGE OF HOLIDAY SHOPPING REX SAID THE OPENINGS WILL BOOST THE TOTAL NUMBER OF STORES OPENED IN FISCAL 1994 TO 27 AND WILL INCREASE TO 133 THE TOTAL NUMBER IN OPERATION THE OPENINGS WILL BRING REX STORES TO THREE NEW STATES KANSAS OKLAHOMA AND WISCONSIN AND INCREASE THE NUMBER OF STATES WITH REX STORES TO 23 9310270138 931027 TIDEWATER FILES OFFER WITH SEC NEW ORLEANS TIDEWATER INC SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A PROPOSED SECONDARY OFFERING OF 63 MILLION COMMON SHARES THE OPERATOR OF OILINDUSTRY SERVICE VESSELS SAID THAT 41 MILLION SHARES WOULD BE OFFERED BY ZAPATA CORP AND 22 MILLION BY BESSEMER CAPITAL PARTNERS INC TIDEWATER CURRENTLY HAS 529 MILLION SHARES OUTSTANDING THE MANAGER OF THE OFFERING IS LEHMAN BROTHERS INC 9310270136 931027 MORRISON KNUDSEN PACT BOISE IDAHO MORRISON KNUDSEN CORP SAID IT FORMED A PARTNERSHIP WITH TORQUE SA TO PRODUCE LOCOMOTIVES IN BRAZIL USING NEW AND RECYCLED COMPONENTS FINANCIAL TERMS OF THE DEAL WEREN'T DISCLOSED THE COMPANY SAID IT WILL PROVIDE TECHNICAL SUPPORT THAT WILL ALLOW TORQUE TO REFABRICATE ASSEMBLE AND TEST LOCOMOTIVES AT ITS PLANTS IN BRAZIL MORRISON KNUD SAID IT WILL ALSO BE THE EXCLUSIVE SUPPLIER OF SPECIALTY PARTS FOR ASSEMBLY OF THE LOCOMOTIVES PRIVATELY HELD TORQUE BASED IN ARARAS BRAZIL EMPLOYS 1300 PEOPLE AT ITS 15 MILLIONSQUAREFOOT MANUFACTURING PLANT 9310270135 931027 TEXAS UTILITIES UNIT TO CALL DEBT DALLAS TEXAS UTILITIES ELECTRIC CO THE PRINCIPAL SUBSIDIARY OF TEXAS UTILITIES CO SAID IT PLANS TO REDEEM EARLY 158 MILLION OF POLLUTIONCONTROL REVENUE BONDS ISSUED THROUGH THE SABINE AND BRAZOS RIVER AUTHORITIES IN TEXAS THE COMPANY PLANS TO REDEEM ONE SERIES OF BONDS DEC 1 AND FOUR SERIES DEC 17 THE BONDS HAVE MATURITIES BETWEEN 2004 AND 2009 THE COMPANY SAID ITS REDEMPTION PLANS DEPEND ON THE CONSUMMATION OF PENDING REFUNDING ARRANGEMENTS 9310270134 931027 ARROW TRANSPORTATION'S OUTLOOK PORTLAND ORE ARROW TRANSPORTATION CO SAID IT EXPECTS ITS RESULTS FOR THE THIRD AND FOURTH QUARTERS TO FALL BELOW ANALYSTS' ESTIMATES DUE TO THE LATE DELIVERY TO THE TRANSPORTATION CONCERN OF 60 NEW TRACTORS AND 16 TANKER TRAILERS ANALYSTS' MEAN ESTIMATE FOR ARROW WAS FOR NET INCOME OF 13 CENTS A SHARE IN THE THIRD QUARTER AND 16 CENTS A SHARE FOR THE FOURTH QUARTER ACCORDING TO ZACKS INVESTMENT RESEARCH INC ARROW SAID IT IS COMFORTABLE WITH ANALYSTS' ESTIMATES FOR 1994 THE MEAN ESTIMATES FOR 1994 IS FOR NET INCOME OF 55 CENTS A SHARE ACCORDING TO ZACKS 9310270133 931027 BUSINESS BRIEF NORTHERN TELECOM POSTS 3RDPERIOD LOSS BUT EXPECTS A PROFIT IN CURRENT QUARTER TORONTO NORTHERN TELECOM LTD REPORTED A THIRDQUARTER LOSS DUE TO PRICING PRESSURES BUT SAID IT EXPECTS TO RETURN TO PROFITABILITY IN THE FOURTHQUARTER THE COMPANY WHICH HAD POSTED A LOSS OF 103 BILLION IN THE SECONDQUARTER DUE TO SOFTWARE PROBLEMS IN ITS CORE SWITCHING EQUIPMENT BUSINESS SAID IT HAS PARTLY CORRECTED THOSE DIFFICULTIES AND IS MAKING PROGRESS IN DELIVERING SOFTWARE UPGRADES TO CUSTOMERS MORE QUICKLY THE COMPANY REPORTED A LOSS OF 337 MILLION OR 13 CENTS A SHARE COMPARED WITH A YEAREARLIER PROFIT OF 1162 MILLION OR 46 CENTS A SHARE REVENUE FELL 7 TO 188 BILLION FROM 202 BILLION THIRDQUARTER RESULTS ALTHOUGH STILL UNACCEPTABLE SHOWED SOME IMPROVEMENT OVER THE SECONDQUARTER OPERATING RESULTS SAID JEAN C MONTY PRESIDENT AND CHIEF EXECUTIVE OFFICER IN CONTRAST TO THE DOMESTIC TRAVAILS AFFECTING ITS CORE BUSINESS NORTHERN TELECOM IS AGGRESSIVELY EXPANDING OVERSEAS AND POSTED STRONG REVENUE GAINS IN ITS WIRELESS BUSINESS THE PRESSURE ON EQUIPMENT PRICES FACED BY NORTHERN TELECOM HIGHLIGHTS A POSSIBLE SHIFT OCCURRING WITHIN THE TELECOMMUNICATIONS INDUSTRY REGIONAL PHONE COMPANIES ARE NOW SIGNING LARGER MULTIYEAR CONTRACTS AS THEY GEAR UP TO PROVIDE NEW VOICE DATA AND VIDEO SERVICES OVER HIGHSPEED NETWORKS TO HOMES AND BUSINESSES NORTHERN TELECOM AND ITS CHIEF RIVAL AMERICAN TELEPHONE & TELEGRAPH CO EACH HAVE ROUGHLY 40 OF THE US MARKET FOR SWITCHING EQUIPMENT BUT AT&T IS BETTER FINANCED IN ADDITION FOREIGN SUPPLIERS LIKE SWEDEN'S LM ERICSSON FRANCE'S ALCATELALSTHOM SA AND JAPAN'S FUJITSU ARE AVIDLY COMPETING IN NORTH AMERICA'S SWITCHING EQUIPMENT MARKET NORTHERN TELECOM WHICH SIGNED A PACT WITH THE CHINESE GOVERNMENT EARLIER THIS YEAR SAID IT SHOWED STRONG REVENUE GAINS IN THE ASIA PACIFIC REGION HOWEVER THESE GAINS AS WELL AS HIGHER REVENUE IN EUROPE WERE MORE THAN OFFSET BY SHARP CUTS IN CAPITAL SPENDING BY BELL CANADA NORTHERN TELECOM'S BIGGEST CUSTOMER NORTHERN TELECOM AND BELL CANADA ARE BOTH CONTROLLED BY CANADA'S BCE LTD THIRDQUARTER REVENUE FELL IN THE US THE CARIBBEAN AND LATIN AMERICA THE COMPANY SAID IT EXPECTS A FOURTHQUARTER RECOVERY IN THE LATTER TWO MARKETS NORTHERN TELECOM HOPES TO EXPAND OPERATIONS BY CONTROLLING COSTS IN JULY IT ANNOUNCED A RESTRUCTURING THAT INCLUDED LAYING OFF 5200 EMPLOYEES OR 9 OF ITS WORK FORCE OVER 18 MONTHS THE BENEFITS HADN'T KICKED DURING THE THIRDQUARTER BUT FUTURE IMPROVEMENTS ARE EXPECTED IN THE MEANTIME NORTHERN TELECOM PLANS TO CONTINUE RECODING ITS SOFTWARE FOR SWITCHING SYSTEMS WHICH WILL MAKE IT EASIER TO DELIVER UPGRADES TO CUSTOMERS IN A TIMELY FASHION THE COMPANY HAD BEEN CONSIDERED TO BE ON THE LEADING EDGE OF SUCH SOFTWARE BUT HAS SLIPPED TO A LEVEL OF PARITY WITH ITS COMPETITION A COMPANY SPOKESMAN SAID ITS EFFORTS OVER THE NEXT SEVERAL MONTHS WILL NOT BE TO CATCH UP BUT LEAPFROG THE COMPETITION HE ADDED 9310270132 931027 LEISURE & ARTS THEATER EXTIRPATION REVISITED BY JOEL HENNING CLEVELAND THE OLD ORDER IN RUSSIA WILL NOT LET GO AND MUST BE FORCIBLY REMOVED YET EVEN AS THE OLD IS SWEPT AWAY WE ARE UNCERTAIN THAT THE NEW ORDER IS SOUND THAT IT WILL BRING ANYTHING BUT MORE SUFFERING AND SACRIFICES WE SAW THIS A COUPLE OF WEEKS AGO ON CNN THE SAME KIND OF TENSION AND THREAT RESONATES THROUGH GERALD FREEDMAN'S INTELLIGENT AND BEAUTIFUL PRODUCTION OF THE CHERRY ORCHARD OF COURSE THIS GREAT LAKES THEATER FESTIVAL PRODUCTION WAS WELL INTO REHEARSALS HERE BEFORE THE LATEST RUSSIAN STRUGGLE EXPLODED IN VIOLENCE BUT CREDIT CHEKHOV'S ARTISTRY AND MR FREEDMAN'S AS WELL FOR PORTRAYING TRUTHS ABOUT RUSSIA AND ITS PEOPLE THAT SEEM AS RELEVANT TODAY AS WHEN THE PLAY WAS FIRST PRESENTED IN 1904 SOCIAL UPHEAVAL SEIZES AND SHAKES ALL THE CHARACTERS IN THE CHERRY ORCHARD MADAME RANYEVSKAYA CANNOT SAVE HER FAMILY'S ANCIENT ESTATES FROM THE AUCTIONEER'S GAVEL BUT NOT ONE OF THE DOOMED FAMILY MEMBERS BELIEVES THE BUSINESSMAN LOPAKHIN WHEN HE SAYS REPEATEDLY THAT THE CHERRY ORCHARD WILL SOON BE SOLD THEY HAVE FAITH THAT A FEW THOUSAND RUBLES WHEEDLED FROM A DISTANT AUNT OR WON IN THE LOTTERY OR BESTOWED BY DIVINE INTERVENTION WILL REDEEM THEIR MATERIAL WORLD THE PITTANCE THEY MUSTER AMOUNTS TO A GESTURE ABOUT AS FARCICAL AS THAT OF COMRADES RUTSKOI AND KHASBULATOV LEADING A RAGTAG MOTLEY OF IRREGULAR TROOPS FROM THE WHITE HOUSE AGAINST THE TANKS OF THE RUSSIAN ARMY POLITICAL SCIENTISTS MIGHT SAY THAT THE PARALLELS ARE OBVIOUS IN THE RUSSIA OF 18801900 A SENSE OF FRUSTRATION AROSE OUT OF THE FAILURE OF ALEXANDER II'S REFORMS TO MAKE A DEEP ENOUGH IMPRESSION ON THE PEOPLE AND THE BUREAUCRATS NOW THE SAME MOOD HAS BEEN CREATED BY SIMILAR FAILURES ON THE PART OF GORBACHEV AND YELTSIN BUT CHEKHOV WAS AN ARTIST NOT A POLITICAL SCIENTIST AND MY GUESS IS THAT HE CAPTURED SOMETHING ESSENTIAL ABOUT THE RUSSIAN CHARACTER THAT TRANSCENDS POLITICS AND HAS NOT CHANGED THROUGHOUT THIS CENTURY EVERYBODY IN THE CHERRY ORCHARD IS DRIVEN BY DREAMS MADAME RANYEVSKAYA SEES THE WHITE GHOST OF HER MOTHER WANDERING AMONG THE CHERRY TREES TROFIMOV THE INTELLECTUAL THE PERPETUAL STUDENT REJECTS THE FEUDAL PAST AND SCORNS THE RISE OF BOURGEOIS CAPITALISM AS REPRESENTED BY THE FORMER SERF LOPAKHIN BUT TROFIMOV DREAMS ABOUT A FUZZY FUTURE WHERE EVERYTHING THAT'S UNATTAINABLE NOW WILL SOME DAY BECOME FAMILIAR UNDERSTANDABLE LOPAKHIN BUYS THE CHERRY ORCHARD AND BEGINS IMMEDIATELY TO CLEAR AWAY THE TREES THE CAPITALIST IN HIM TALKS OF BUILDING WEEKEND HOUSES FOR THE NEW BOURGEOISIE BUT HIS DREAM IS TO OWN THE LAND ON WHICH HIS FATHER AND GRANDFATHER WERE SERFS AND TO EVICT THEIR MASTERS CHEKHOV CENTERS THE CHERRY ORCHARD ON MADAME RANYEVSKAYA GENEROUS WITH NEIGHBORS AND TRAMPS EVEN AS HER OWN DEBTS GO UNPAID DREAMILY NOSTALGIC ABOUT THE TRAPPINGS OF HER FORMER LIFE SHE HAS NO POWER EITHER TO SAVE HER LAND FROM LOPAKHIN OR TO MARRY OFF HER ADOPTED DAUGHTER TO HIM MR FREEDMAN CAST PIPER LAURIE IN THIS ROLE AND SHE BRINGS MUCH TO IT IF YOU LAST SAW MS LAURIE NUBILE IN HER SLIP WRAPPED IN PAUL NEWMAN'S ARMS IN THE HUSTLER 1961 YOU WILL BE UNPREPARED FOR HER MATRONLY PRESENCE HERE UNTIL SHE MOVES DOWNSTAGE AND REVEALS THOSE UNMISTAKABLE PIPER LAURIE EYES FRIGHTENED VULNERABLE REFLECTING HER PAIN BEGINNING AT THE OPENING CURTAIN MR FREEDMAN GIVES HER SEVERAL EFFECTIVE MOMENTS ALONE IN A POOL OF LIGHT NOTHING DISTRACTS US FROM THE SILENT STORY TOLD BY THOSE EYES MS LAURIE UNDERPLAYS RANYEVSKAYA AS IF IN A FILM AND THE RESULT IS PERHAPS TOO MUCH RESTRAINT CHEKHOV INSISTED THAT THE MOSCOW ART THEATER UNDER STANISLAVSKY TREAT THE CHERRY ORCHARD AS A LIGHT COMEDY HE WANTED HIS PLAY TO MOVE BETWEEN TRAGEDY AND FARCE MS LAURIE WEIGHS IN WITH MORE GRAVITY AND RESPECT THAN THE PLAYWRIGHT WANTED OR NEEDED JIM HILLGARTNER IS ESPECIALLY GOOD AS SIMEONOVPISHCHIK THE SEEDY AND SUPERFICIAL NEIGHBOR ALWAYS SPONGING FROM RANYEVSKAYA RON RANDELL PLAYS FIRS THE DECREPIT OLD RETAINER WHO BELIEVES THAT EVERYTHING STARTED DOWNHILL WHEN THE SERFS WERE FREED IN 1860 MR RANDELL BRINGS VITALITY AND INSIGHT TO THIS ANCIENT AND AILING MAN WHO NATTERS ON ABOUT THE SIMPLE DAYS BEFORE FREEDOM WHEN THE PEASANTS OWNED THE GENTRY AND THE GENTRY OWNED THE PEASANTS BUT NOW EVERYTHING'S SEPARATE AND YOU CAN'T UNDERSTAND ANYTHING ONCE AGAIN WE ARE REMINDED OF RUSSIA TODAY WHILE THE BALANCE OF THE COMPANY CARRIES THE PLAY QUITE RESPECTABLY THESE TWO SEEM BEST TO UNDERSTAND THAT CHEKHOV WANTS THE DARK AND PATHETIC UNDERTONES OF HIS CHARACTERS TO BE CLOAKED IN GOOD HUMOR I DON'T KNOW WHETHER MR FREEDMAN HAS PUT A DAMPER ON HIS CAST OR IF THEIR SOBRIETY MIGHT LIFT AFTER MORE TIME WITH THE PLAY GIVES THEM CONFIDENCE AND RAISES THEIR SPIRITS EVEN NOW JOHN EZELL HAS GIVEN THEM SETS FULL OF SYMBOLIC FURNISHINGS THAT REINFORCE THE HIGHLY PHYSICAL LIFE OF THE PLAY THE ACTORS MOVE AMONG WELLCHOSEN OBJECTS THAT ALMOST BECOME ADDITIONAL MEMBERS OF THE CAST THE BOOKCASE THE HOBBY HORSE THE OTHER ARTIFACTS OF THE NURSERY TAKE ON CHARACTER AS OBJECTS DO IN MAGRITTE PAINTINGS AND THEIR PLACEMENT ON THE STAGE IS JUST AS SURREAL THESE OBJECTS ARE NOT ARRANGED INTO ANY SEMLANCE OF ROOMS THEY REFER TO A WAY OF LIFE THAT IS REPRODUCED IN SMALLER FULLY FURNISHED ROOMS AND OUTDOOR LOCATIONS UPSTAGE THESE MODEL SETS ARE ABOUT A QUARTER LIFE SIZE BIG ENOUGH FOR THE AUDIENCE TO MAKE OUT BUT TOO SMALL FOR ACTORS TO WALK THROUGH THEY ARE THERE TO SHOW THE PLAYERS' MEMORY OF THE WAY THINGS NEVER WILL BE AGAIN THE STAGE IS COVERED BY A CANOPY OF CHERRY BLOSSOMS ALWAYS IN BLOOM JUST AS THE RANYEVSKAYA FAMILY REMEMBERS THE PAST LAWRENCE CASEY'S COSTUMES ARE ALSO SPLENDID TROFIMOV LOOKS THE MANGY GENTLEMAN THAT HE IS SAID TO BE YEPIKHODOV'S BOOTS SQUEAK THE WOMEN ARE GLORIOUS IN THEIR GOWNS AND LOPAKHIN'S WHITE VEST AND YELLOW SHOES ARE JUST OVER THE LINE OF BAD TASTE AS THEY SHOULD BE THIS PRODUCTION IS SCHEDULED TO CLOSE ON OCTOBER 30 TOO BAD BECAUSE THE CHERRY ORCHARD IS AN ENSEMBLE WORK AND I SUSPECT THAT THE END OF THIS WEEK IS JUST ABOUT WHEN THE MANY FINE ELEMENTS OF THIS UNDERTAKING WILL TRULY BEGIN TO JELL 9310270131 931027 TIME WARNER EXTENDS OFFER NEW YORK TIME WARNER INC'S TIME WARNER ENTERTAINMENT CO LP UNIT SAID IT WILL EXTEND ITS PREVIOUSLY ANNOUNCED OFFER TO EXCHANGE AS MUCH AS 1 BILLION PRINCIPAL AMOUNT OF ITS 8375 SENIOR DEBENTURES DUE 2023 FOR A LIKE PRINCIPAL AMOUNT OF ITS ISSUED AND OUTSTANDING 8375 SENIOR DEBENTURES DUE 2023 THE OFFER WHICH WAS SCHEDULED TO CLOSE TOMORROW WILL NOW CLOSE NOV 4 AT 5 PM EST AS OF THE CLOSE OF BUSINESS MONDAY ABOUT 8917 MILLION PRINCIPAL AMOUNT OF THE BONDS HAD BEEN TENDERED FOR EXCHANGE TIME WARNER IS A MEDIA PUBLISHING AND ENTERTAINMENT CONCERN 9310270130 931027 CRSS PICKED FOR KUWAIT JOB HOUSTON CRSS INC SAID ITS CRSS ARCHITECTS INC UNIT HAS BEEN SELECTED BY JA JONES CONSTRUCTION CO AS ARCHITECT OF RECORD FOR THE NEW 26 MILLION US EMBASSY FACILITIES IN KUWAIT CITY THE COMPANY SAID THE WORK INCLUDES FINAL DESIGN BASED ON CONCEPTUAL DESIGNS PROVIDED BY THE STATE DEPARTMENT'S OFFICE OF FOREIGN BUILDINGS OPERATIONS CONSTRUCTION ON THE EMBASSY FACILITIES IS SCHEDULED TO BEGIN IN JANUARY AND END IN MID1996 THE COMPANY SAID WHEN COMPLETED THE 105000SQUAREFOOT COMPLEX WILL INCLUDE FIVE MAJOR BUILDINGS THE COMPANY SAID 9310270129 931007 AN AFRICAN SOLUTION FOR SOMALIA BY GEORGE BN AYITTEY WITH CONGRESS DEBATING THE WITHDRAWAL OF AMERICAN TROOPS FROM SOMALIA AND WITH THE MISSION CLEARLY HAVING BEEN TRANSFORMED FROM A HUMANITARIAN OPERATION TO A MILITARY AND POLITICAL ONE IT IS TIME TO ACKNOWLEDGE THAT AFRICANS BEAR ULTIMATE RESPONSIBILITY FOR MANAGING OR MISMANAGING THEIR OWN AFFAIRS IN THIS NEW WORLD ORDER IT IS SIMPLY IMPRACTICAL TO EXPECT THE US OR THE UNITED NATIONS TO SOLVE ALL OF AFRICA'S PROBLEMS I A NATIVE OF GHANA AM NOT ALONE IN HOLDING THIS OPINION INCREASING NUMBERS OF AFRICANS SUCH AS MY COLLEAGUE FAWZI GULEID OF SOMALIA ARE ESPOUSING THIS IDEA AND ORGANIZATIONS SUCH AS THE ORGANIZATION OF AFRICAN UNITY ALREADY EXIST TO SOLVE CONFLICTS LIKE THE ONE IN SOMALIA THIS VIEW IS PARTICULARLY RELEVANT NOW WITH NEARLY ALL OF SOMALIA OTHER THAN MOGADISHU AT PEACE AND WITH STARVATION NO LONGER A REAL THREAT THE INTERNATIONAL EFFORT TO SAVE SOMALIA FROM ITSELF HAS BEEN A DISASTER BUT WITHDRAWAL OF THE PEACEKEEPING FORCE SAYS UN SECRETARYGENERAL BOUTROS BOUTROSGHALI WOULD REPRESENT A HUMBLING OF THE UN AND OF THE EFFORTS OF THE US AND OTHER COUNTRIES TO RESTORE PEACE AND HUMAN DECENCY TO SOMALIA WORSE IT IS SAID A WITHDRAWAL WOULD HAND OVER TO A VICIOUS VAGABOND A VAINGLORIOUS TRIUMPH THAT WOULD GASP ELEVATE HIS STATURE OTHER ARMED ROGUES IN BOSNIAHERZEGOVINA THE MIDDLE EAST OR THE THIRD WORLD WOULD THUS BE ENCOURAGED TO THUMB THEIR NOSES AT THE UN IS THERE A GRACEFUL WAY OUT OF THE SOMALIA CONUNDRUM I BELIEVE SO IN HINDSIGHT IT APPEARS THE ORIGINAL DECISION TO DISPATCH US MARINES TO SOMALIA IN DECEMBER WAS HASTILY CONCEIVED CARING FOR NEEDY STARVING PEOPLE IS A NOBLE COMPASSIONATE IMPULSE BUT SHOULD NOT BE CONFUSED WITH THE MODE OF HELPING THEM A CRITICISM OF THE MEANS DOES NOT NECESSARILY REFLECT RACIST INERTIA OR AN UNWILLINGNESS TO HELP STARVING SOMALIS COULD HAVE BEEN HELPED WITHOUT DIRECT US MILITARY INTERVENTION BUT THE VIEWS OF MANY PEOPLE INCLUDING AFRICANS WHO EXPRESSED THIS SENTIMENT IN DECEMBER WERE DISMISSED AS EITHER NAIVE OR UNCARING CONSIDER THAT RAKIYA OMAAR A SOMALI NATIONAL WAS RELIEVED OF HER POST AS DIRECTOR OF THE NEW YORK/LONDONBASED HUMAN RIGHTS ORGANIZATION AFRICA WATCH FOR OPPOSING US MILITARY INTERVENTION THE CRISIS HAD BEEN GROSSLY EXAGGERATED SHE CLAIMED FOR EXAMPLE THE UN WORLD FOOD PROGRAM CLAIMED THAT ABOUT 80 OF RELIEF FOOD IN SOMALIA WAS BEING LOOTED PAUL MITCHELL A SPOKESMAN FOR THE PROGRAM LATER ACKNOWLEDGED HOWEVER THAT THE FIGURE WAS ERRONEOUS AND REMARKED THAT WE WERE NEVER ASKED TO CORRECT IT SIMILARLY ABOUT THREEQUARTERS OF THE COUNTRY WAS RELATIVELY PEACEFUL BEFORE THE INTERVENTION FAMINE AND WAR WERE LIMITED TO THE SOUTHWEST REGION CLAN ELDERS ELSEWHERE HAD PLAYED A CRITICAL ROLE IN FACILITATING THE DELIVERY OF HUMANITARIAN ASSISTANCE AND IN NEGOTIATING PEACE AGREEMENTS THROUGHOUT MUCH OF THE COUNTRY EVEN THEN FAMINE WAS ON THE WANE MARKETS IN THE MAIN TOWNS WERE OVERFLOWING WITH CHEAP FOOD RAINS CAME IN LATE DECEMBER PRODUCING SIZABLE HARVESTS LOCAL FARMERS THEN FOUND A PROBLEM ON THEIR HANDS THE PRICES OF LOCAL STAPLES SUCH AS RICE SORGHUM AND CORN HAD SO PLUMMETED THAT THERE WAS NO INCENTIVE TO SELL THEM THE PRICE OF A 110POUND BAG OF RICE HAD DROPPED TO 5 THE LOWEST PRICE ANYWHERE IN THE WORLD THE PROBLEM WAS SO GREAT THAT IN JANUARY RELIEF AGENCIES SUCH AS CARE SAVE THE CHILDREN AND CATHOLIC RELIEF SERVICES BEGAN TO BUY UP PARTS OF THE LOCAL CROPS TO REDUCE THE GLUT ON THE MARKET ACUTE MALNUTRITION EXISTED ONLY IN SCATTERED RURAL POCKETS DISEASE RATHER THAN STARVATION ACCORDING TO MS OMAAR EXACTED A DEVASTATING TOLL BUT HER MOST POIGNANT GRIPE WAS THAT DESPITE THE EXISTENCE OF MANY SOMALIS WITH EXPERTISE HUMANITARIAN COMMITMENT AND ACCOUNTABILITY TO ORDINARY PEOPLE THERE WAS NOT EVEN A PRETENSE AT CONSULTING A SINGLE ONE INDEED THE ORIGINAL MISSION CONSPICUOUSLY LACKED AN AFRICAN INPUT AND STILL DOES INTERNATIONAL CONCERN FOR STARVING SOMALIS IS OF COURSE LAUDABLY MAGNANIMOUS BUT SOMALIA IS AN AFRICAN PROBLEM REQUIRING AN AFRICAN SOLUTION WHILE THE US AND OTHER NATIONS CAN HELP AN AFRICAN INPUT OR INITIATIVE IS INDISPENSABLE AND SHOULD FORM THE CRITICAL MASS OF ANY RESCUE MISSION LOCAL AND REGIONAL INITIATIVES SHOULD ACTIVELY BE SOUGHT ENCOURAGED AND SUPPORTED RATHER INCONGRUOUSLY THE WESTERN MEDIA HAVE LARGELY IGNORED THE PAINSTAKING GRASSROOTS RECONCILIATION EFFORTS AND PEACE INITIATIVES THE SOMALI PEOPLE THEMSELVES HAVE UNDERTAKEN TO BRING ORDER AND STABILITY TO THEIR COUNTRY FOR EXAMPLE LAST OCTOBER CLAN ELDERS MET IN SHEIKH TO RESOLVE THE CONFLICT BETWEEN THE ISSE MUSE AND HABR YUNIS CLANS IN FEBRUARY 1993 A PEACE AGREEMENT WAS SIGNED WITHOUT ANY CONDITIONS ATTACHED BETWEEN THE DHULBAHANTE AND HABR YUNIS CLANS TO END FIGHTING AND RESOLVE DISPUTES OVER GRAZING LAND WATER RESOURCES AND PROPERTY THEN IN MARCH IN THE NORTHERN TOWN OF BORAMA THE COUNCIL OF ELDERS MET TO SET A POLITICAL FRAMEWORK FOR A RETURN TO CONSTITUTIONAL RULE ENCOURAGING AND SUPPORTING LOCAL AND REGIONAL INITIATIVES DOES NOT CONSTITUTE AN IMMORAL CALLOUSNESS TOWARD THE INDIGENT IN AFRICA FAR FROM IT IN FACT IT WOULD ALLOW THE UN TO EXTRICATE ITSELF FROM THE SOMALIA IMBROGLIO AND SPARE THE WORLD THE REVOLTING SPECTACLES OF FOREIGN PEACEKEEPING TROOPS FIRING UPON WOMEN AND CHILDREN USED AS HUMAN SHIELDS NOT TO MENTION THE GHASTLY CELEBRATIONS OVER THE DEATHS OF US MARINES MORE IMPORTANT SUPPORTING HOMEGROWN INITIATIVES TIES IN WITH THE CURRENT ORTHODOXY IN AFRICA AN INCREASING NUMBER OF ANGRY AFRICANS FED UP WITH BEING PORTRAYED AS INCAPABLE OF SOLVING THEIR OWN PROBLEMS NOW SAY THE DESTINY OF AFRICA LIES IN THE HANDS OF AFRICANS NOT FOREIGNERS SUCH SENTIMENTS HAVE BEEN ECHOED EVEN IN OFFICIAL CIRCLES IN AN IRATE EDITORIAL ON JUNE 26 GHANA'S STATEOWNED PAPER THE MIRROR REMARKED THAT THE TIME HAS COME FOR AFRICAN LEADERS TO REEXAMINE THEMSELVES AND FIND OUT WHETHER THEY ARE PREPARED TO FACE AND OVERCOME THE CHALLENGES FACING THE CONTINENT THE FUTURE OF AFRICA LIES IN THE HANDS OF HER SONS AND DAUGHTERS AND WE MUST DO EVERYTHING IN OUR POWER TO SAVE OUR CONTINENT THE TIME IS NOW OR NEVER THE ORGANIZATION OF AFRICAN UNITY WHOSE MANDATE IS THE RESOLUTION OF CONFLICTS IN AFRICA SHOULD HAVE SPEARHEADED THE RELIEF OPERATIONS IN SOMALIA JUST AS THE ORGANIZATION OF AMERICAN STATES HAS SERVED AS A CATALYST IN THE RESOLUTION OF DISPUTES AND THE PROMOTION OF DEMOCRACY IN LATIN AMERICA BUT AS ERITREA'S PRESIDENT ISSAIAS AFEWERKI NOTED AT THE OAU'S JUNE SUMMIT IN CAIRO THE SAD FACT REMAINS THAT THE OAU HAS BECOME A NOMINAL ORGANIZATION THAT HAS FAILED TO DELIVER ON ITS PRONOUNCED OBJECTIVES AND COMMITMENTS STUNG BY SUCH CRITICISM FROM AFRICA THE OAU IS BEGINNING TO SHAPE UP A RESOLUTION WAS ADOPTED ON JUNE 30 TO CREATE A NEW MECHANISM FOR CONFLICT PREVENTION RESOLUTION AND MANAGEMENT THE OBJECTIVE OF THE RESOLUTION DECLARED SECRETARYGENERAL AHMED SALIM IS TO ALLOW AFRICA TO BE THE CENTER PLACE FOR TAKING DECISIONS RELATING TO CONFLICTS A VITAL INGREDIENT IN ANY HUMANITARIAN MISSION INTO AFRICA SHOULD ENCOMPASS THIS NEWLY REFORMED OAU THE UN SHOULD WORK TO TRANSFER THE PEACEKEEPING MANDATE IN SOMALIA TO THE OAU INSTEAD OF SIDELINING IT WITH A MULTITUDE OF IMPLACABLE AND OBSOLETE ALIBIS THE OFTVOICED CHARGE THAT THE OAU IS HOPELESSLY INEPT AND UNRELIABLE IS A PARTICULARLY CRUDE IRONY IN LIGHT OF THE UN'S PERFORMANCE IN SOMALIA THE MULTINATIONAL FORCES SHOULD BE REPLACED WITH A CONTINGENT OF AFRICAN SOLDIERS DRAWN FROM NEIGHBORING COUNTRIES THIS PLAN WAS SUCCESSFULLY ADOPTED BY THE ECONOMIC ORGANIZATION OF WEST AFRICAN STATES TO END LIBERIA'S THREEYEAR CIVIL WAR A CEASEFIRE WAS SIGNED IN JULY AND AN INTERIM GOVERNMENT APPOINTED THE US PROVIDED ABOUT 25 MILLION TOWARD PEACEKEEPING EFFORTS IN LIBERIA THAT AFRICAN INITIATIVE BACKED WITH WESTERN SUPPORT WORKED AND SHOULD BE REPLICATED IN SOMALIA REGARDLESS OF MUNDANE RESERVATIONS ABOUT EFFICACY AN AFRICAN SOLUTION UNDER THE AUSPICES OF THE OAU HAS SEVERAL ADVANTAGES THE USE OF AFRICAN SOLDIERS AND MUNITION IS LESS EXPENSIVE THAN U S MARINES AND COBRA HELICOPTERS AFRICAN SOLDIERS IN CONTRAST TO US MARINES ARE NOT ENCUMBERED BY DIPLOMATIC IMPERATIVES AND CONVOLUTED RULES OF ENGAGEMENT AFRICAN SOLDIERS ALSO HAVE A BETTER UNDERSTANDING OF THE CULTURAL ENVIRONMENT AND THE TOPOGRAPHY BUT MOST IMPORTANT OF ALL IT IS AFRICANS WHO IN THE FINAL ANALYSIS MUST SOLVE AFRICA'S PROBLEMS THE VIEWS OF AFRICANS THOSE PURPORTEDLY BEING HELPED NEED TO BE AIRED IN THE WESTERN MEDIA AN AFRICAN SOLUTION CANNOT BE SUPPORTED BY THE WEST IF FEW IN THE WEST KNOW OF IT MR AYITTEY IS PRESIDENT OF THE FREE AFRICA FOUNDATION IN WASHINGTON AND A PROFESSOR OF ECONOMICS AT AMERICAN UNIVERSITY FAWZI A GULEID FOUNDER OF SOMALI COMMUNITY SERVICE INC IN SILVER SPRING MD HELPED IN THE PREPARATION OF THIS ARTICLE SEE RELATED LETTERS LETTERS TO THE EDITOR SOMALIA'S PROBLEMS AS OLD AS HUMANITY WSJ OCT 27 1993 9310070066 YY93 MM10 9310270128 931006 CHECK THE NUMBERS IF YOU CAN BY DONALD GOLDSMITH ON SEPT 22 IN THE MOST SIGNIFICANT SPEECH OF HIS CAREER PRESIDENT CLINTON CALLED FOR HEALTH CARE REFORM THIS SPEECH SUMMARIZED THE RESULTS OF MANY MONTHS OF DISCUSSION AND ANALYSIS BY THOUSANDS OF HARDWORKING INTELLIGENT MEN AND WOMEN WITHIN AND WITHOUT THE WHITE HOUSE AND YET IN A SPEECH DEVOTED TO THE HUGE NUMBERS OF DOLLARS SPENT ON HEALTH CARE MR CLINTON MADE A SINGLE MATHEMATICAL CALCULATION AND GOT IT WRONG BY A FACTOR OF 10 DESCRIBING THE PAPERWORK BURDEN AT THE WASHINGTON CHILDREN'S HOSPITAL THE PRESIDENT STATED THAT IF THE DOCTORS HAD TO FILL OUT ONLY THE FORMS NECESSARY TO MONITOR THE HEALTH OF THE CHILDREN EACH DOCTOR ON THAT ONE HOSPITAL STAFF 200 OF THEM COULD SEE ANOTHER 500 CHILDREN A YEAR AND WITH A PAUSE FOR EMPHASIS THE PRESIDENT THEN SAID THAT IS 10000 CHILDREN PER YEAR BUT IT ISN'T TWO HUNDRED TIMES 500 EQUALS NOT 10000 BUT 100000 FOR THOSE OF US WHO LONG AGO MEMORIZED THE USEFUL RULE THAT 100 TIMES 100 EQUALS 10000 THE PRESIDENT'S ERROR WAS OBVIOUS I WOULD GUESS HOWEVER THAT NOT ONE PERSON IN 10000 PROBABLY NOT ONE IN 100000 WHO SAW OR HEARD THE PRESIDENT'S SPEECH NOTICED HIS ERROR IN MULTIPLICATION BILL CLINTON HAS PROVIDED A STRIKING EXAMPLE OF THE SAD BUT TRUE FACT THAT TO MOST AMERICANS EVEN WELLEDUCATED ONES ALL LARGE NUMBERS SEEM ABOUT EQUAL IN REAL LIFE HOWEVER SOME LARGE NUMBERS ARE MUCH LARGER THAN OTHERS THE INNUMERACY OF AMERICANS HAS BEEN MUCH DISCUSSED MOST NOTABLY IN A BOOK WITH THAT TITLE BY JOHN ALLAN PAULOS BUT NO ONE SEEMS TO KNOW WHAT TO DO ABOUT IT IF THE PRESIDENT AIDED BY A LARGE WELLTRAINED STAFF CAN MULTIPLY 200 TIMES 500 AND GET 10000 WHAT HOPE REMAINS HOW CAN WE EVEN BEGIN TO IMPROVE THE DELIVERY OF HEALTH CARE TO 250 MILLION AMERICANS OF COURSE WE KNOW THAT BEHIND THE POLITICIANS THE SPEECH WRITERS AND THE TOPLEVEL PLANNERS STANDS A HOST OF LOWERLEVEL GOVERNMENT EMPLOYEES WHO ACTUALLY CAN CRUNCH NUMBERS FOR THEIR PAINS THEY ARE OFTEN DISMISSED AS BUREAUCRATIC HACKS BUT MR CLINTON'S ERROR PROVIDES STRIKING PROOF OF HOW MUCH WE NEED THEM THE FEAR OF MATHEMATICS HAS CAUSED MANY OF US TO DESPISE THOSE WHO CAN MULTIPLY 500 TIMES 200 AND OBTAIN THE CORRECT ANSWER I SUBMIT THAT UNLESS WE CAN ENSURE THIS ABILITY AMONG OURSELVES WE ARE LOST ONE CAN HARDLY CLAIM THAT A SINGLE ERROR IN A SINGLE SPEECH SHOWS THAT WE ARE DOOMED BUT I URGE EACH OF MY FELLOW CITIZENS AS THE DEBATE ON HEALTH CARE CONTINUES TO CHECK THE MULTIPLICATION OF NUMBERS IT MAY BE WORTHWHILE MR GOLDSMITH IS A TEACHER OF ASTRONOMY AND THE AUTHOR OF SEVERAL BOOKS ON THE SUBJECT SEE RELATED LETTER LETTERS TO THE EDITOR MULTIPLE EFFECT WSJ OCT 27 1993 9310060097 YY93 MM10 9310270127 931027 INTERNATIONAL NISSAN MAZDA ISUZU TO FURLOUGH WORKERS FOR PRODUCTION CUTS SPECIAL TO THE WALL STREET JOURNAL TOKYO NISSAN MOTOR CO MAZDA MOTOR CORP AND ISUZU MOTOR LTD SAID THEY PLAN TO FURLOUGH WORKERS FOR SHORT PERIODS LATE THIS YEAR TO ADJUST PRODUCTION AMID CONTINUED SLUGGISH SALES IN JAPAN AND OVERSEAS NISSAN AND MAZDA WILL ADD TWO HOLIDAYS FOR EMPLOYEES IN NOVEMBER ISUZU WILL ADD TWO HOLIDAYS EACH IN NOVEMBER AND DECEMBER BUT IT PLANS TO MAKE THEM UP BY ADDING A WORKDAY TO EACH OF THE FIRST FOUR MONTHS OF 1994 A SPOKESMAN SAID THE DEVELOPMENTS FOLLOW SIMILAR MOVES BY JAPANESE STEELMAKERS WHICH BEGAN FURLOUGHING WORKERS THIS MONTH BUT THEY WILL BE THE FIRST FURLOUGHS BY JAPANESE CAR MAKERS A LABOR MINISTRY OFFICIAL SAID MAZDA'S PLAN TO SHUT DOWN THE COMPANY ON NOV 22 AND NOV 29 WILL AFFECT NEARLY ALL OF ITS 25000 EMPLOYEES WITH THOSE TWO DAYS MAZDA WILL CUT PRODUCTION BY 7500 VEHICLES THE SPOKESMAN SAID AT NISSAN THE FURLOUGH WILL INVOLVE 2100 OF THE 6500 WORKERS AT ITS PLANT IN TOCHIGI PREFECTURE WHERE PRODUCTION WILL BE CUT BY A TOTAL 1400 VEHICLES OVER TWO DAYS A NISSAN SPOKESWOMAN SAID VEHICLE PRODUCTION IN JAPAN HAS FALLEN IN RECENT MONTHS TO THE LOWEST LEVELS IN A DECADE AS A RESULT OF WEAK DOMESTIC SALES AND DECLINES IN EXPORTS WHICH WERE HIT BY THE STRONGER YEN 9310270126 931027 ALCOA ASSOCIATED CEMENT PACT BOMBAY INDIA ALUMINUM CO OF AMERICA AND ASSOCIATED CEMENT CO OF BOMBAY SIGNED A JOINT VENTURE TO PRODUCE AND SELL ALUMINA RAW MATERIALS TO THE INDIAN REFRACTORY AND CERAMIC INDUSTRY THE JOINT VENTURE WILL BUILD A PLANT IN FALTA WEST BENGAL EXPECTED TO OPEN IN THE SECOND HALF OF 1994 THE FACILITY WILL HAVE CAPACITY TO PRODUCE 10000 TONS A YEAR OF TABULAR ALUMINA AND MAGNESIUM ALUMINATE SPINEL AGGREGATES USED IN REFRACTORY PRODUCTS FOR STEEL PETROCHEMICALS REFINING FERTILIZER AND CEMENT INDUSTRIES THE NEW COMPANY IS OWNED 60 BY ALCOA AND 40 BY ASSOCIATED CEMENT AND WILL ALSO MARKET OTHER ALCOA CHEMICALS WITHIN INDIA 9310270123 931011 REVIEW & OUTLOOK EDITORIAL FREE SPEECH SEEKS ADMISSION IT COMES AS GOOD NEWS THAT THE INTERIM PRESIDENT OF THE UNIVERSITY OF PENNSYLVANIA CLAIRE FAGIN HAS A MIND TO REPEAL THE SCHOOL'S SPEECH CODES NOTHING COULD BE MORE FITTING GIVEN THE LATE WATER BUFFALO CASE AND OTHER INTERNATIONALLY RENOWNED EVENTS AT PENN IF THIS IS THE START OF A TREND ONE CAN ONLY WISH IT WELL THE NEW PRESIDENT EVIDENTLY INTERESTED IN MAKING SOME CHANGES WILL NATURALLY HAVE TO CONTEND WITH CAMPUS ZEALOTS DETERMINED TO HOLD ON TO THEIR LEGAL WEAPONRY THIS UNSURPRISING FACT WAS MADE ESPECIALLY CLEAR IN A RECENT MEETING OF PENN STUDENT REPRESENTATIVES REPORTED IN THE DAILY PENNSYLVANIAN ONE OPPONENT OF ANY CHANGE DOUBTLESS SPOKE FOR ADVOCATES OF SPEECH CODES THE NATION OVER WHEN HE ROSE TO DELIVER HIS OWN COLORFULLY WORDED VIEW OF THE PRINCIPLE OF FREE EXPRESSION WHICH WAS NAMELY FTHAT S THE PENN STUDENT ASSEMBLY THEN VOTED DOWN A PROPOSAL TO GET RID OF THE SPEECH GUIDELINES THE CALL AT ANY RATE IS THE UNIVERSITY PRESIDENT'S TO MAKE AND IT MUST BE MADE QUICKLY WITHOUT SHILLYSHALLYING UNIVERSITIES FIND THEMSELVES IN THEIR CURRENT QUAGMIRES OF NOTORIETY PRECISELY BECAUSE THEIR ADMINISTRATORS WERE MORE INTERESTED IN EVADING POLITICALLY UNCOMFORTABLE STANDS THAN IN TAKING DECISIONS THAT WERE THEIRS TO MAKE INSTEAD OF LEADING THEY CONSULTED WITH ENDLESS COMMITTEES AND ACTIVISTS PLACATING EACH THAT IS HOW THE SPEECH AND HARASSMENT CODES CAME INTO BEING IN THE FIRST PLACE HOW GOVERNANCE OF UNIVERSITIES CAME UNDER THE CONTROL OF UNDERGRADUATES AND FACULTY IDEOLOGUES THE BEST REASON FOR ENCOURAGEMENT IS THE FORTHRIGHT AND DECISIVE STAND RECENTLY TAKEN BY THE UNIVERSITY OF PENNSYLVANIA'S BOARD OF TRUSTEES ON SEPTEMBER 19 THE BOARD PASSED A RESOLUTION CONDEMNING THE NEW ADMINISTRATION'S DECISION NOT TO PUNISH STUDENTS WHO LAST SPRING CONFISCATED ALL COPIES OF THE STUDENT PAPER THE UNIVERSITY AT THE TIME REACTED BY PUNISHING THE CAMPUS POLICE WHO HAD ATTEMPTED TO STOP THE THEFT AND THEN EXPLAINED ITS REASONS FOR DOING SO IN A LIST OF TORTURED ADMINISTRATIVE FINDINGS WHOSE LOGIC WOULD HAVE DONE INSPECTOR CLOUSEAU PROUD ON SEPTEMBER 19 THE PENN BOARD ISSUED A STATEMENT IT DECLARED THAT ALL MEMBERS OF THE UNIVERSITY COMMUNITY MUST FROM THIS TIME FORWARD BE TREATED EQUALLY AND THAT THE TRUSTEES WOULD ENSURE THAT THE UNIVERSITY UPHOLDS POLICIES REFLECTING THE FUNDAMENTAL IMPORTANCE OF FREEDOM OF SPEECH MOREOVER THE TRUSTEES WARNED THEY PLANNED TO ENSURE THAT THOSE RESPONSIBLE FOR THE ADMINISTRATION OF THOSE UNIVERSITY POLICIES ARE HELD ACCOUNTABLE FOR THEIR ACTIONS THOSE OF US WHO HAVE BEEN WATCHING THE DECLINE OF FREEDOM ON CAMPUSES HAVE BEEN WAITING A LONG TIME TO HEAR WORDS LIKE THIS FROM TRUSTEES TRUSTEES ELSEWHERE WOULD DO WELL TO EMULATE THE PENN BOARD THOSE AT SARAH LAWRENCE COLLEGE FOR EXAMPLE MIGHT CONSIDER THE IMPLICATIONS OF A JUDICIAL FARCE WITH THE POTENTIAL TO BECOME AS FAMOUS AS THE WATER BUFFALO PROCEEDINGS THAT FOLLOWED WHEN ADMINISTRATORS DEEMED A STUDENT'S LAUGHTER TO BE A FORM OF HARASSMENT IN JANUARY 1993 UNDERGRADUATE JOHN BOESKY INDEED THE SON OF IVAN GOT EMBROILED IN A QUARREL AND ENDED UP HURLING A WORD DERISIVE TO HOMOSEXUALS AT HIS FORMER ROOMMATE MR BOESKY'S FRIEND SOPHOMORE MARLIN LASK WITNESSED THE EXCHANGE AND SEEMS IN ADDITION TO HAVE GIGGLED BROUGHT UP BEFORE THE COLLEGE JUDICIAL REVIEW BOARD A COMMON FEATURE ON CAMPUSES NOW MR BOESKY COPPED A PLEA INTERESTINGLY ENOUGH AND VOWED TO OFFEND NO MORE BUT MR LASK CHARGED WITH CONTRIBUTING TO THE CREATION OF A HOSTILE AND INTIMIDATING ATMOSPHERE REFUSED TO CONSIDER HIMSELF GUILTY OF ANY CRIME COLLEGE ADMINISTRATORS CONTEND THAT MR LASK MADE A VERBAL COMMENT IN ADDITION TO LAUGHING AND THAT THEY HAVE A WITNESS THE NATURE OF THIS WITNESS NEITHER MR LASK NOR THE WORLD CAN EVER KNOW SINCE IN THESE STRANGE JUDICIAL PROCEEDINGS THE ACCUSED IS NEVER ALLOWED TO FACE HIS ACCUSER OR CONFRONT A WITNESS AGAINST HIM MR LASK QUITE RIGHTLY HAVING REFUSED THE VERDICT AND THE PUNISHMENT 20 HOURS OF COMMUNITY SERVICE WATCHING FILMS AND WRITING PAPERS ON HOMOPHOBIA HAS TAKEN HIMSELF OFF TO ANOTHER SCHOOL FOR NOW EVERY SUCH CASE THAT COMES TO LIGHT UNDERSCORES THE TOTALITARIAN NATURE OF THE WORLD GOVERNED BY SPEECH CODES IT IS A LIGHT THAT SEEMS TO BE DAWNING NONETHELESS THE UNIVERSITY OF MICHIGAN RECENTLY ENDED A FIVEYEAROLD POLICY THAT SET CONSTRAINTS ON WHAT FACULTY MEMBERS COULD SAY IN CLASS ABOUT PROTECTED CATEGORIES OF PEOPLE IN THE WORDS OF PROVOST GILBERT WHITAKER REPORTED IN THE MICHIGAN SCHOLAR AS LACK OF CIVILITY MUST NOT SILENCE DISCUSSION FALSE CLAIMS OF RACISM SEXISM AND SO FORTH MUST NOT BE ALLOWED TO SILENCE LEGITIMATE DISCUSSION ALSO RAISING HIS VOICE AGAINST THE ARGUMENTS FOR SPEECH RESTRICTIONS IS SCHOLAR HENRY LOUIS GATES JR IN A REMARKABLE ARTICLE IN THE SEPTEMBER 20 NEW REPUBLIC PENN'S PRESIDENT FAGIN IN SHORT ISN'T ALONE WHEN AND IF SHE TAKES ACTION TO ABOLISH THE CODES SHE WILL HAVE THE SUPPORT OF HER TRUSTEES THEY AND NO DOUBT SHE UNDERSTAND THAT SINCE EVENTS AT PENN CAME TO SYMBOLIZE THE DERANGEMENT VISITED ON OUR CAMPUSES IN THE NAME OF SENSITIVITY AND DIVERSITY IT'S ONLY APPROPRIATE THAT PENN'S ADMINISTRATION SHOULD BE AMONG THOSE LEADING THE WAY BACK OUT OF THE MORASS TO REASON SEE RELATED LETTER LETTERS TO THE EDITOR PENN STUDENTS OPPOSE GAG ON FREE SPEECH WSJ OCT 27 1993 9310110080 YY93 MM10 9310270122 931027 CENTERIOR ENERGY'S NET PLUNGED 86 IN THIRD QUARTER BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL CENTERIOR ENERGY CORP'S THIRDQUARTER EARNINGS PLUNGED 86 TO 17 MILLION OR 12 CENTS A SHARE REFLECTING ONETIME CHARGES AND ACCOUNTING CHANGES A YEAR EARLIER THE INDEPENDENCE OHIO UTILITY HAD NET INCOME OF 122 MILLION OR 86 CENTS A SHARE REFLECTING REGULATORY ACCOUNTING CHANGES SALES ROSE 66 TO 709 MILLION FROM 665 MILLION THE 1993 RESULTS REFLECT A ONETIME PRETAX CHARGE OF 125 MILLION TO COVER JOB REDUCTIONS AND 80 MILLION IN ACCOUNTING CHANGES FOR POSTRETIREMENT BENEFITS THE EARNINGS WERE BETTER THAN EXPECTED THE COMPANY HAD ADVISED ANALYSTS TO EXPECT A LOSS BUT A CENTERIOR SPOKESMAN SAID AN EXCEPTIONALLY HOT SUMMER WHICH GENERATED INCREASED AIR CONDITIONER USAGE HELPED ALLOW A PROFIT THE SPOKESMAN SAID THE STOCK'S PRICE HAS PLUMMETED ABOUT 12 THE PAST MONTH ON ANALYSTS' SPECULATION THAT CENTERIOR'S BOARD IS POISED TO CUT THE 160 ANNUAL DIVIDEND THE BOARD THIS YEAR BEGAN QUARTERLY REVIEWS OF ITS DIVIDEND POLICY WITH THE NEXT REVIEW SCHEDULED IN JANUARY THE SPOKESMAN SAID IT IS PREMATURE TO ASSUME THE DIVIDEND WOULD BE REDUCED MEANWHILE MOODY'S INVESTORS SERVICE INC PLACED THE RATINGS OF TWO CENTERIOR UNITS CLEVELAND ELECTRIC ILLUMINATING CO AND TOLEDO EDISON CO ON REVIEW FOR POSSIBLE DOWNGRADE ABOUT 64 BILLION OF SECURITIES ARE AFFECTED THE RATINGS AGENCY CITED THE DELETERIOUS EFFECT OF HIGH COSTS AND ONEROUS DEFERRALS ON THE UTILITIES' ABILITY TO COMPETE IN THE YEARS AHEAD THE CENTERIOR SPOKESMAN SAID THE UTILITY IS STRAPPED WITH A LARGE DEBT LOAD AS A RESULT OF NUCLEARPLANT CONSTRUCTION PROJECTS IN THE 1980S HE ADDED THAT CENTERIOR ISN'T FREE TO RAISE PRICES BECAUSE OF COMPETITION FROM OTHER OHIO UTILITIES THE ONETIME CHARGE IN THE THIRDQUARTER COVERS A JOBREDUCTION PROGRAM PRIMARILY THROUGH VOLUNTARY EARLY RETIREMENTS LAUNCHED LAST SUMMER CENTERIOR SAID IT IS CONSIDERING CUTTING OTHER COSTS TO IMPROVE EARNINGS IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY CENTERIOR CLOSED UNCHANGED AT 1450 9310270121 931027 REVIEW & OUTLOOK EDITORIAL ASIDES POLITICAL PUPPETS STARTLED SAN FRANCISCANS WILL VOTE NEXT TUESDAY ON TWO UNUSUAL PROPOSITIONS PROP AA SHALL IT BE THE POLICY OF THE PEOPLE OF SAN FRANCISCO THAT ALL CITY OFFICIALS AND FULLTIME EMPLOYEES TRAVEL TO AND FROM WORK ON PUBLIC TRANSIT AT LEAST TWICE A WEEK AND PROP BB SHALL IT BE THE POLICY OF THE PEOPLE OF SAN FRANCISCO TO ALLOW POLICE OFFICER BOB GEARY TO DECIDE WHEN HE MAY USE HIS PUPPET BRENDAN O'SMARTY WHILE ON DUTY DON'T ASK 9310270120 931027 TUESDAY'S MARKETS STOCKS DOLLAR DROP AS PRICES FOR BONDS RISE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES WERE MOSTLY LOWER AS INVESTORS TOOK PROFITS FOLLOWING MONDAY'S RECORD IN THE DOW JONES INDUSTRIAL AVERAGE BOND PRICES ROSE AND THE DOLLAR FELL THE INDUSTRIAL AVERAGE FELL 112 POINTS TO 367249 STANDARD & POOR'S 500STOCK INDEX ROSE 010 TO 46430 THE NASDAQ COMPOSITE INDEX SANK 429 TO 76546 TRADING BEGAN ON A WEAK NOTE AFTER THE CONFERENCE BOARD SAID OCTOBER CONSUMER CONFIDENCE FELL INSTEAD OF RISING AS WAS EXPECTED THE INDUSTRIAL AVERAGE RETREATED FROM ITS RECORD FALLING NEARLY 20 POINTS BEFORE RECOVERING NEAR THE CLOSE ECONOMICALLY SENSITIVE STOCKS CONTINUED TO OUTPERFORM THE DOW JONES TRANSPORTATION AVERAGE MADE UP OF AIRLINES TRUCKING COMPANIES AND RAILROADS AND OFTEN AN INDICATOR OF FUTURE ECONOMIC TRENDS CLIMBED 1944 TO A RECORD 169715 STEFAN D ABRAMS DIRECTOR OF EQUITY STRATEGY AT TRUST CO OF THE WEST IN LOS ANGELES EMPHASIZED THAT THIRDQUARTER EARNINGS ARE MOSTLY POSITIVE AND THE ECONOMY IS PERKING UP WE'RE LAYING THE GROUNDWORK FOR GOOD FOURTHQUARTER PROFITS AND A HEAD START INTO NEXT YEAR HE SAID WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 039 TO 11321 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2845 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1131 ISSUES FELL AND 890 ROSE BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED NEARLY 1/4 POINT OR ALMOST 250 FOR EACH 1000 FACE AMOUNT TO YIELD 598 THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16788 MARKS AND 10830 YEN COMPARED WITH 16860 MARKS AND 10858 YEN MONDAY 9310270119 931027 DATA GENERAL POSTS LOSS AFTER CHARGE FOR ITS 4TH PERIOD BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL WESTBOROUGH MASS DATA GENERAL CORP CONTINUING TO STRUGGLE WITH DECLINING SALES OF ITS OLDER PRODUCT LINES REPORTED A LOSS FOR THE FISCAL FOURTH QUARTER OF 372 MILLION OR 106 A SHARE AFTER A RESTRUCTURING CHARGE OF 25 MILLION THE COMPANY ALSO DISCLOSED PLANS TO CUT SEVERAL HUNDRED MORE EMPLOYEES FROM ITS WORK FORCE REVENUE FOR THE QUARTER ENDED SEPT 25 DECLINED 34 TO 2784 MILLION DATA GENERAL SAID ITS SALES WOULD HAVE INCREASED 4 WITHOUT THE NEGATIVE EFFECT OF CURRENCY TRANSLATIONS FROM FOREIGN SALES IN THE YEAREARLIER QUARTER DATA GENERAL POSTED EARNINGS OF 500000 OR ONE CENT A SHARE ON REVENUE OF 2882 MILLION THE COMPANY'S SHARES FELL SHARPLY CLOSING AT 925 DOWN 1375 OR 13 IN ACTIVE NEW YORK STOCK EXCHANGE TRADING DATA GENERAL IN THE THIRD YEAR OF TRANSITION TO NEW TECHNOLOGY AND STANDARD OPERATING SOFTWARE SAID ITS NEW AVIION LINE OF COMPUTERS GREW 30 IN THE YEAR SUPPLANTING THE OLDER LINE AS THE COMPANY'S TOP SELLER AND REACHING SALES OF 400 MILLION IN THE YEAR BUT THE LOSS WAS DEEPER THAN EXPECTED JAY P STEVENS OF DEAN WITTER REYNOLDS INC HAD ESTIMATED A LOSS OF 15 CENTS A SHARE BEFORE THE CHARGE THE ACTUAL LOSS AMOUNTED TO 35 CENTS A SHARE THE 25 MILLION CHARGE WAS TAKEN LARGELY TO PAY FOR NEW WORK FORCE REDUCTIONS THE COMPANY'S PAYROLL NOW STANDS AT 6550 DOWN FROM 6710 IN THE THIRDQUARTER A SPOKESMAN SAID THAT SEVERAL HUNDRED ADDITIONAL LAYOFFS ARE PLANNED IN THE COMING MONTHS FOR THE FISCAL YEAR DATA GENERAL REPORTED A LOSS OF 605 MILLION OR 173 A SHARE COMPARED WITH THE PREVIOUS YEAR'S LOSS OF 625 MILLION OR 191 A SHARE WHICH INCLUDED A RESTRUCTURING CHARGE OF 48 MILLION FOR WORK FORCE CUTS REVENUE FELL TO 108 BILLION FROM 112 BILLION DATA GENERAL'S PRESIDENT RONALD L SKATES DIDN'T EXPRESS MUCH HOPE FOR A QUICK TURNAROUND WE DO NOT ANTICIPATE IMPROVED WORLDWIDE ECONOMIC CONDITIONS FOR THE FORESEEABLE FUTURE AND THERE IS NO EVIDENCE THAT COMPETITIVE PRESSURES WILL ABATE HE SAID HE ALSO SAID THAT WHILE THE NEW LINE OF AVIION PRODUCTS WAS GROWING AND A SEPARATE LINE OF DATASTORAGE EQUIPMENT WAS SELLING WELL THEY HAVEN'T YET OFFSET THE SHARP DECLINE IN REVENUE FROM THE OLDER ECLIPSE COMPUTER FAMILY WHEREVER POSSIBLE WE'RE CONTINUING TO ADJUST OUR COST STRUCTURE TO BRING IT MORE IN LINE WITH REVENUES AND MARGINS HE SAID DATA GENERAL ALSO SAID IT SOLD 19 MILLION OF ASSETS DURING THE LAST QUARTER AND THAT IT HAD 192 MILLION OF CASH AND MARKETABLE SECURITIES ON HAND AS OF SEPT 25 9310270118 931027 CHRYSLER MINIVANS' REAR GATE LATCH INVESTIGATED BY US WASHINGTON THE NATIONAL HIGHWAY TRAFFIC SAFTEY ADMINISTRATION IS INVESTIGATING THE REAR GATE LATCH ON CHRYSLER CORP'S MINIVANS AFTER REPORTS OF ACCIDENTS IN WHICH CHILDREN WERE THROWN FROM THE BACK OF THE POPULAR VEHICLES UNDER INQUIRY ARE THE 462000 DODGE CARAVAN PLYMOUTH VOYAGER AND CHRYSLER TOWN AND COUNTRY MINIVANS FROM THE 1992 MODEL YEAR CHRYSLER HAS SOLD NEARLY FOUR MILLION OF THESE CARS SINCE 1984 THE GOVERNMENT'S PRELIMINARY EVALUATION OF THE MINIVAN'S GATE LATCH SYSTEM BEGAN SEPT 30 AFTER ONE CHILD WAS KILLED AND ANOTHER INJURED IN AN ACCIDENT IN FAIRFAX COUNTY VA ACCORDING TO POLICE REPORTS THE CHILDREN WERE PLAYING IN THE BACK OF THE MINIVAN AND NOT WEARING SEAT BELTS WHEN THEY WERE THROWN FROM THE BACK OF THE CAR THE NHTSA ALSO IS GATHERING REPORTS ON ANOTHER FATAL ACCIDENT IN VIRGINA AND A NONFATAL INCIDENT IN NORTH CAROLINA WE WANT TO LEARN ALL WE CAN SAID SPOKESMAN TIM HURD TO SEE IF THERE'S A SAFTEY PROBLEM TO LOOK AT WITH THE REAR LATCH ON THESE MINIVANS IN A STATEMENT CHRYSLER SAID IT WILL COOPERATE FULLY WITH THE GOVERNMENT INQUIRY AND IS CONDUCTING ITS OWN INVESTIGATION OF THE ACCIDENTS WE DO NOT BELIEVE THAT THERE IS ANY PRODUCT DEFECT RELATED TO THE GATE LATCH SYSTEM AND WE FEEL CONFIDENT THAT NHTSA WILL ARRIVE AT THE SAME CONCLUSION AFTER THEIR INVESTIGATION IS COMPLETED THE COMPANY SAID MR HURD SAID THE NHTSA HAS NO SET DEADLINE FOR THE COMPLETION OF THE PRELIMINARY EVALUATION IF A SAFTEY DEFECT IS FOUND THE INVESTIGATION COULD BE BROADENED TO OTHER MODEL YEARS AND A RECALL COULD BE ORDERED 9310270117 931027 PROVIDENCE HEALTH SAYS NEITHER SIDE WON PROXY FIGHT BUT COMMONWEALTH ASSOCIATES SAYS IT HAS SUFFICIENT VOTES AND FORMS A RIVAL BOARD BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL BEREA OHIO OUTSIDE INVESTORS SEEKING CONTROL OF PROVIDENCE HEALTH CARE INC SAID THEY HAVE AMASSED A MAJORITY OF VOTING STOCK HOWEVER INSIDERS SAID NEITHER SIDE HAD ENOUGH SHARES TO WIN THE PROXY FIGHT EACH SIDE NEEDS TO CONTROL AT LEAST 501 OF 3699004 SHARES OUTSTANDING TO WIN THE STRUGGLE BEGAN IN AUGUST WHEN COMMONWEALTH ASSOCIATES AN INVESTMENT BANK WHICH TOOK PROVIDENCE PUBLIC IN FEBRUARY 1992 FILED ITS INTENT TO SOLICIT PROXIES WE HAVE ROUGHLY 45 OF VOTING STOCK AND WE'RE AT THE SAME PLACE THEY COMMONWEALTH ARE SAID A SPOKESMAN FOR LAWRENCE B CUMMINGS CHAIRMAN OF THE HEALTHCARE CONCERN HOWEVER KERRY DUKES COMMONWEALTH'S CHIEF OPERATING OFFICER SAID THAT A GROUP OF INVESTORS INCLUDING COMMONWEALTH WAS OVER THE TOP BY A SUFFICIENT AMOUNT AND HAD FORMED A NEW BOARD TO RUN PROVIDENCE WE HAVE REMOVED THE BOARD OF DIRECTORS OF PROVIDENCE HEALTH CARE AND WE ARE NOT GOING TO SOLICIT FURTHER MR DUKES SAID ADDING THAT THE NEW BOARD MET LATE MONDAY AND ADOPTED A STOCKHOLDERS'RIGHTS PLAN AND BYLAW AMENDMENTS TO BAR COERCIVE TAKEOVER EFFORTS COMMONWEALTH'S PROXIES WILL NOW BE TALLIED BY AN INDEPENDENT INSPECTOR BOTH SIDES DISCLOSED SEVERAL STATE AND FEDERAL COURT RULINGS WHICH HAD AN IMPACT ON THE PROXY FIGHT COMMONWEALTH SAID IT WAS GIVEN A BOOST WHEN THE DELAWARE CHANCERY COURT ISSUED A PRELIMINARY INJUNCTION TO PREVENT NUMED HOME HEALTH CARE INC FROM VOTING ITS 20 STAKE IN PROVIDENCE COMMONWEALTH WHICH CONTROLS 8 OF PROVIDENCE HAD FILED A MOTION TO BAR NUMED FROM VOTING SHARES IT ACQUIRED IN LATE SEPTEMBER AFTER PROVIDENCE ACQUIRED A 40 STAKE IN NUMED THE STOCK AND CASH TRANSACTION GAVE NUMED 20 OF PROVIDENCE COMMONWEALTH'S SUIT ALLEGED BREACH OF FIDUCIARY DUTY IN THAT TRANSACTION IN ISSUING THE INJUNCTION THE DELAWARE JUDGE SAID THERE'S A SUBSTANTIAL LIKELIHOOD THAT COMMONWEALTH COULD PROVE THAT PROVIDENCE'S PRIMARY MOTIVE FOR THE NUMED TRANSACTION WAS TO WIN THE PROXY FIGHT THE PROVIDENCE SPOKESMAN SAID WE TOTALLY DISAGREE WITH THE JUDGE'S DECISION PROVIDENCE MEANWHILE PRAISED A DECISION BY A FEDERAL COURT IN NEW YORK ALLOWING MR CUMMINGS TO RESUME BUYING SHARES AND VOTE THOSE SHARES IN THE PROXY FIGHT THE BUYING BY MR CUMMINGS CONTINUED MONDAY AT THE END OF TRADING HE AND SUPPORTERS OWNED ABOUT 44 OF SHARES OUTSTANDING NOT INCLUDING NUMED EARLIER IN THE DAY HIS SPOKESMAN SAID MR CUMMINGS TWO BROTHERS AND OTHER INSIDERS CONTROLLED ABOUT 425 OF SHARES OUTSTANDING PROVIDENCE ALSO APPLAUDED THE DELAWARE COURT'S DECISION DENYING COMMONWEALTH'S REQUEST FOR AN EXTENSION TO SOLICIT PROXIES BEYOND YESTERDAY'S CLOSEOFBUSINESS DEADLINE BUT LATE MONDAY COMMONWEALTH SAID IT NO LONGER NEEDED THAT EXTRA TIME 9310270116 931027 COMMODITIES US COPPER FUTURES FALL AS AVAILABLE STOCKS OF THE METAL REACH A 15YEAR HIGH IN LONDON BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL US COPPER FUTURES PRICES FELL AS AVAILABLE COPPER STOCKS AT THE LONDON METALS EXCHANGE ROSE TO A 15YEAR HIGH AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR DECEMBER DELIVERY WAS DOWN 50 CENTS TO 7260 CENTS A POUND A WIDELY FOLLOWED TWICEWEEKLY REPORT RELEASED YESTERDAY BY THE LONDON EXCHANGE SHOWED THAT ITS STOCKS OF COPPER HAD RISEN 6850 TONS TO A TOTAL OF 612900 TONS THESE STOCKS ARE THE COPPER STORED IN WAREHOUSES FOR DELIVERY AGAINST THE EXCHANGE'S FUTURES CONTRACTS THEIR DRAMATIC INCREASES THIS YEAR PAINT A BLEAK PICTURE OF GLOBAL DEMAND FOR COPPER COPPER TRADERS AT NEW YORK'S COMEX MONITOR THE LONDON STOCKS CLOSELY AS AN INDICATOR OF DEMAND YESTERDAY A SHARPLY LOWER OPENING IN ALUMINUM TRADING AT THE LONDON EXCHANGE SET THE TONE FOR A DISMAL DAY AT NEW YORK'S COPPER MARKET ANALYSTS SAID WE HAD SEVERE WEAKNESS IN BASE METALS IN GENERAL AND THE HIGH LEVELS OF STOCKS AND THE CONTINUED SLOW GROWTH IN EUROPE ARE LIMITING THE UPSIDE OF PRICES SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THE COPPER MARKET HAS BEEN ATTEMPTING TO BOTTOM OUT RIGHT NOW IT'S SEARCHING FOR SOME SORT OF TECHNICAL BOTTOM MANY TRADERS FEEL THAT THE COPPER MARKET IS CURRENTLY OVERSOLD BECAUSE OF THE WEAK DEMAND FOR COPPER FROM TRADITIONAL BUYERS IN EUROPE JAPAN AND CHINA ABOUT 75 OF ALL CONSUMPTION OCCURS IN FOREIGN COUNTRIES THE WEAKNESS OF THE JAPANESE AND GERMAN ECONOMIES HAS DRAINED COPPER DEMAND AS HAS THE SURPRISING ABSENCE OF CHINA FROM THE MARKET YET THE SPECULATIVE COPPER SELLERS WHO HELPED TO DRIVE PRICES TO THEIR CURRENTLY LOW LEVELS HAVE BEEN HANGING BACK LATELY ANALYSTS SAID BECAUSE OF RUMORS OF IMMINENT CHINESE BUYING THERE IS VAGUE TALK ABOUT CHINA COMING INTO THE MARKET WHICH IT HAS AN UNCANNY HABIT OF DOING JUST WHEN OUR CHARTS LOOK THE WORST SAID BERNARD SAVAIKO COPPER ANALYST FOR PAINEWEBBER INC THEY NEED COPPER AND THEIR ECONOMY IS STILL STRONG THE COPPER FUTURES MARKET'S EFFORTS TO RALLY IN RECENT WEEKS HAVE LOST STRENGTH AT ABOUT THE 75CENTAPOUND PRICE LEVEL THE BEARS WILL REGAIN CONFIDENCE IF THEY BEGIN TO BELIEVE THAT ALL RALLIES WILL BE ANEMIC MR SAVAIKO SAID A RALLY IS POSSIBLE IN THE NEXT FEW WEEKS EVEN WITHOUT MAJOR CHINESE BUYING MR SAVAIKO THEORIZED ALTHOUGH HE SAID HE DOUBTS PRICES WILL TOP 78 CENTS A POUND IN OTHER COMMODITY MARKETS YESTERDAY LUMBER LUMBER FUTURES PRICES FELL AFTER A WEEK OF GAINS AS STRENGTH OF DEMAND FOR SOUTHERN PINE LUMBER ERODED AT THE CHICAGO MERCANTILE EXCHANGE LUMBER FOR NOVEMBER DELIVERY WAS DOWN 1180 TO 35110 PER THOUSAND BOARD FEET THE MARKET HAD BEEN SUPPORTED IN RECENT WEEKS BY WHOLESALERS' BRISK BUYING OF SOUTHERN PINE AND LAST WEEK BUYING OF NORTHWESTERN LUMBER AS WELL YESTERDAY HOWEVER THE QUOTED PRICE ON THE CASH MARKET FOR LUMBER REMAINED UNCHANGED AT 340 PER THOUSAND BOARD FEET INDICATING A TAPERING OFF OF DEMAND ANALYSTS SAID THE MARKET HAS PROBABLY RALLIED TOO FAR ANALYSTS THEORIZED AND A CONTINUING CORRECTION IS NOW POSSIBLE ENERGY PETROLEUM FUTURES PRICES WERE MIXED IN A TRENDLESS OIL MARKET PRICES MOVED HIGHER IN EARLY TRADING YESTERDAY IN A REBOUND FROM MONDAY'S SELLOFF BUT THE FLEDGLING RALLY QUICKLY FADED ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR DECEMBER DELIVERY SETTLED THREE CENTS A BARREL HIGHER AT 1754 TRADERS WERE CAUTIOUS YESTERDAY IN ADVANCE OF THE INDUSTRY'S LATEST WEEKLY REPORT ON US OIL INVENTORIES MAJOR JUMPS IN INVENTORIES WOULD BE CONSIDERED BEARISH ALTHOUGH ANALYSTS GENERALLY EXPECTED SMALL INCREASES IF ANY HOWEVER THE REPORT RELEASED BY THE AMERICAN PETROLEUM INSTITUTE AFTER FUTURES TRADING HAD CLOSED SHOWED BIG INCREASES IN LAST WEEK'S INVENTORIES OF CRUDE OIL UP 52 MILLION BARRELS AND DISTILLATE FUELS UP NEARLY 25 MILLION BARRELS THE ONLY BULLISH NEWS INVOLVED GASOLINE INVENTORIES WHICH DECLINED NEARLY ONE MILLION BARRELS 9310270115 931027 PROPOSED GM SETTLEMENT ON TRUCKS DRAWS QUESTIONS PHILADELPHIA A TENTATIVE CLASSACTION SETTLEMENT INVOLVING GENERAL MOTORS CORP PICKUPS WON'T ADEQUATELY BENEFIT PICKUP OWNERS AND WON'T MAKE THE TRUCKS SAFE OPPONENTS OF THE AGREEMENT SAID AT FEDERAL FAIRNESS HEARING US DISTRICT COURT JUDGE WILLIAM H YOHN JR LIKELY WILL DECIDE NEXT MONTH WHETHER TO APPROVE THE PROPOSED SETTLEMENT WHICH GIVES PICKUP OWNERS 1000 COUPONS TOWARD THE PURCHASE OF A NEW GM TRUCK JUDGE YOHN REPEATEDLY QUESTIONED ATTORNEYS ABOUT POSSIBLE REPAIRS TO THE TRUCKS SO THAT THE GAS TANKS WOULD BE LESS VULNERABLE IN SIDEIMPACT COLLISIONS HE ALSO QUESTIONED ATTORNEYS ABOUT THE REACH OF A POSSIBLE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION RECALL OF THE PICKUPS JUDGE YOHN SEEMED CONCERNED THAT MOST OF THE 19731987 PICKUPS WOULD FALL OUT OF THE REACH OF SUCH A RECALL FEDERAL REGULATORS CANNOT FORCE AUTO MAKERS TO RECALL VEHICLES THAT ARE MORE THAN EIGHT YEARS OLD GM ARGUED THAT THE PICKUP TRUCKS ARE SAFE AND THAT THERE IS NO PRACTICAL WAY TO MAKE THE GAS TANKS SAFER ATTORNEYS FOR THE AUTO MAKER ASKED THE JUDGE TO CONSIDER WHETHER THE PROPOSED SETTLEMENT IS REASONABLE AND NOT WHETHER IT WAS THE MOST FAVORABLE SETTLEMENT FOR TRUCK OWNERS 9310270114 931027 TORONTO HAVING WON THE SERIES GETS THE LION'S SHARE OF THE SPOILS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL YOU COULD SAY PHILADELPHIA LOST SOME OF ITS PRIDE LAST WEEK BECAUSE OF A BET PLACED ON THE OUTCOME OF BASEBALL'S WORLD SERIES BETWEEN THE PHILLIES AND THE WINNING TORONTO BLUE JAYS THE PHILADELPHIA ZOO MUST TEMPORARILY HAND OVER SOME YETTOBEBORN CUBS OF ITS RARE WHITE LIONS TO TORONTO'S METRO ZOO IT'S SORT OF LIKE PLAYING FUTURES SAYS PETE HOT OF PHILADELPHIA'S ZOO BUT I'M EATING HUMBLE PIE NOW IN THE WILD WHITE LIONS ARE FOUND ONLY IN THE TIMBAVATI GAME RESERVE IN SOUTH AFRICA AND SCARCELY A DOZEN ANIMALS ARE KNOWN TO EXIST WORLDWIDE UNLIKE ALBINO LIONS WHICH ENTIRELY LACK PIGMENTATION WHITE LIONS SPORT STARTLING WHITE FUR BECAUSE OF A RARE GENETIC ABERRATION PHILADELPHIA'S ZOO THE OLDEST IN THE US HAS THE COUNTRY'S ONLY SPECIMENS OF THE BIG CATS AND IS TRYING TO BREED MORE OF THEM TWO FEMALE WHITE LIONS HAVE BEEN PLACED IN THE SAME ENCLOSURE WITH A MALE SOUTH AFRICAN LION WHO CARRIES THE RECESSIVE GENE LIONS BREED EASILY IN CAPTIVITY SO THERE'S A HIGH LIKELIHOOD THAT NATURE WILL SUCCESSFULLY TAKE ITS COURSE SAYS MR HOSKINS IN TORONTO ZOO FOLKS ARE GOING APE ALONG WITH THE REST OF THE BLUE JAY FANS WE'RE DELIGHTED TO TAKE ADVANTAGE OF PHILADELPHIA CROWS CALVIN WHITE GENERAL MANAGER OF TORONTO'S ZOO BY WINNING THE BET THE ZOO EXPECTS TO DISPLAY THE WHITE LIONS' CUBS FOR A SEASON A SURE CROWD PLEASER THAT COULD BOOST ATTENDANCE THINGS WOULDN'T HAVE BEEN SO ROSY HOWEVER HAD THE BLUE JAYS LOST TORONTO WOULD HAVE HAD TO HAND OVER A PAIR OF TASMANIAN DEVILS BUT WE KNEW WE WERE GOING TO WIN WE DON'T EVEN OWN ANY TASMANIAN DEVILS SAYS MR WHITE THE ZOO IS AWAITING A PAIR OF THE CREATURES AS A GIFT FROM THE GOVERNMENT OF TASMANIA MR WHITE WHO IS EAGER TO EXPAND HIS ZOO'S COLLECTION OF RARE ANIMALS SAYS A SIMILAR BASEBALL WAGER NEXT SEASON ISN'T OUT OF THE QUESTION BUT HE LAMENTS THAT WHAT WE REALLY WANT ARE PANDAS WHICH AMONG US AND CANADIAN ZOOS ARE FOUND ONLY IN WASHINGTON'S NATIONAL ZOO MEANWHILE THE TORONTO ZOO WILL HAVE ITS HANDS FULL DEALING WITH THE TASMANIAN DEVILS BEARLIKE CARNIVOROUS MARSUPIALS WITH DISPOSITIONS A LITTLE BIT ON THE NASTY SIDE SAYS MR WHITE WE FEED OUR ANIMALS HORSE MEAT HE SAYS ADDING AND IF THE DEVILS DON'T LIKE THAT WE'LL FEED THEM THE PHILLIES 9310270113 931027 MARKETING & MEDIA ADVERTISING MOLSON TAPS YOUNG & RUBICAM TO TEND FORMER LINTAS ACCOUNT BY LAURA BIRD MOLSON BREWERIES USA FIRED INTERPUBLIC GROUP'S LINTAS FROM THE MOLSON BEER ACCOUNT AND SERVED IT UP TO YOUNG & RUBICAM NEW YORK ADVERTISING INDUSTRY EXECUTIVES SAID SPOKESMEN FOR MOLSON AND YOUNG & RUBICAM DECLINED TO COMMENT JOHN BARNETT PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MOLSON'S US MARKETING OPERATIONS IN RESTON VA SAID IN AN INTERVIEW EARLIER THIS MONTH THAT MOLSON EXPECTS TO SPEND ABOUT 40 MILLION NEXT YEAR ADVERTISING THE MOLSON BRAND THE SHIFT MARKS THE THIRD MAJOR ACCOUNT LOSS IN AS MANY WEEKS AT THE LINTAS AGENCY LAST WEEK INTERNATIONAL BUSINESS MACHINES MOVED ITS PERSONALCOMPUTER ADVERTISING TO OMNICOM GROUP'S MERKLEY NEWMAN HARTY ACCOUNTING FOR A 40 MILLION TO 50 MILLION LOSS JUST TWO WEEKS EARLIER COCACOLA CO MOVED THE ESTIMATED 60 MILLIONPLUS DIET COKE ACCOUNT TO ANOTHER INTERPUBLIC GROUP SHOP THE MOLSON BUSINESS BILLED JUST 10 MILLION LAST YEAR BUT SOON AFTER PHILIP MORRIS'S MILLER BREWING ACQUIRED A STAKE IN MOLSON COS LTD OF CANADA AND BOUGHT MOLSON'S US MARKETING OPERATIONS LAST JANUARY MADISON AVENUE EXECUTIVES SNIFFED OUT A RARE OPPORTUNITY A BRANDNAME MARKETER PLANNING A DRAMATIC INCREASE IN AD SPENDING AGENCIES SOON DESCENDED ON MOLSON AND THE ACCOUNT WENT INTO A FORMAL REVIEW EARLIER THIS FALL TONY MILLER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LINTAS'S NEW YORK OFFICE EXPRESSED DISMAY AT THE REVIEW'S OUTCOME YOU INVEST IN WHAT YOU THINK WILL BE A GROWTH BUSINESS HE SAID BUT THE MILLER BREWING STAKE IN MOLSON MADE IT DIFFICULT FOR LINTAS WHICH DOESN'T HAVE MILLER ACCOUNTS TO HOLD ONTO THE MOLSON BUSINESS IN SNARING THE MOLSON BUSINESS YOUNG & RUBICAM BEAT SEVERAL AGENCIES WHICH LIKE ITSELF HAVE BEEN CULTIVATING RELATIONSHIPS WITH MILLER BREWING TWO SAATCHI & SAATCHI AGENCIES WERE PURSUING THE ACCOUNT IN LATE STAGES OF THE REVIEW INCLUDING BACKER SPIELVOGEL BATES WHICH WAS ONCE THE AGENCY FOR THE MAMMOTH MILLER LITE ACCOUNT AND NOW HANDLES THE GENUINE DRAFT BUSINESS AND CLIFF FREEMAN & PARTNERS WHICH WAS THE AGENCY BEHIND THE TEST ADS FILLED WITH FRATBOY HUMOR FOR MILLER'S CLEAR BEER IN ADDITION BAYER BESS VANDERWARKER A CLOSELY HELD CHICAGO SHOP THAT MILLER RECENTLY ADMITTED TO ITS AGENCY ROSTER PARTICIPATED IN THE PITCH YOUNG & RUBICAM'S CHICAGO OFFICE MANEUVERED ITSELF INTO THE MILLERAGENCY STABLE IN 1991 WITH A NEW PRODUCT ASSIGNMENT AND HAS SINCE PICKED UP SMALL MILLER ACCOUNTS INCLUDING COLDERS 29 HIGH LIFE AND THE ICE HOUSE TEST BRANDS MOLSON INCLUDING A NUMBER OF BRAND EXTENSIONS AND THE ICE BEER MOLSON ICE WAS A ROUGHLY 226 MILLION BUSINESS AT RETAIL LAST YEAR A SLIGHT INCREASE FROM 1991 ACCORDING TO FRANK WALTERS SENIOR VICE PRESIDENT AND DIRECTOR OF RESEARCH AT M SHANKEN COMMUNICATIONS INC'S IMPACT DATABANK UNIT IN NEW YORK ALTHOUGH MOLSON IS THE NO 3 IMPORTED BEER IN THE US BEHIND HEINEKEN AND CORONA IT IS STILL PUNY COMPARED WITH DOMESTIC BEERS LIKE BUDWEISER WHICH OUTSELLS IT BY ABOUT 46TO1 ADVERTISING AND BEERINDUSTRY EXECUTIVES EXPECT BIG THINGS FOR THE MOLSON BRAND MOLSON HAS AN INTENSELY LOYAL FOLLOWING IN SOME REGIONAL MARKETS LIKE THE NORTHEAST YET IT HAS SPENT RELATIVELY LITTLE ON ADVERTISING MILLER IS EXPECTED TO EXPAND THAT FOLLOWING WITH ITS VAST DISTRIBUTION SYSTEM AND MOLSON ICE WHICH IS BEING INTRODUCED NATIONALLY THIS YEAR IS DOING WELL ACCORDING TO MR WALTERS PARTICIPANTS IN THE ACCOUNT PITCH SAID YESTERDAY THAT THEY EXPECT THE NEW MOLSON CAMPAIGN TO TARGET HEINEKEN DRINKERS MORE DIRECTLY HEINEKEN'S ADS HAVE USED A SLIGHTLY SNOOTY TONE BUT THAT HASN'T BEEN MOLSON'S STYLE IN THE PAST A RECENT MOLSON TELEVISION COMMERCIAL URGED VIEWERS TO ANSWER THE CALL INTERSPERSING SCENES FROM A BAR WITH WOLVES ROAMING THE WILD TERMINATION THE BOSTON GLOBE SAID IT AND BOSTON AGENCY HILL HOLLIDAY CONNORS COSMOPULOS HAVE ENDED THEIR 15YEAR RELATIONSHIP EFFECTIVE NOV 1 THE NEWSPAPER RECENTLY ACQUIRED BY THE NEW YORK TIMES CO SAID IT IS SEEKING A NEW AGENCY TO HANDLE THE 4 MILLION ACCOUNT INTERPUBLIC INTERPUBLIC GROUP OF COS WHICH OWNS THE AGENCIES MCCANNERICKSON LINTAS AND LOWE GROUP REPORTED THIRDQUARTER NET INCOME OF 147 MILLION OR 20 CENTS A SHARE AN 18 INCREASE FROM 124 MILLION OR 17 CENTS A SHARE A YEAR EARLIER WORLDWIDE REVENUE DECREASED 57 FOR THE QUARTER TO 411 MILLION FROM 4358 MILLION A YEAR EARLIER INTERPUBLIC SAID THE REVENUE DECLINE WAS DUE TO UNFAVORABLE CURRENCY RATES AND A PREDICTABLE DECREASE IN AD SPENDING IN A POSTOLYMPICS YEAR 9310270112 931027 GM TO ATTRACT EARLY RETIREES WITH CARS CASH TENTATIVE UAW CONTRACT ALSO WOULD POSTPONE CLOSURE OF 2 FACTORIES BY NEAL TEMPLIN AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP WILL OFFER NEW CARS AND PAYMENTS OF AS MUCH AS 100000 AS PART OF A NEW BLUECOLLAR EARLYRETIREMENT PROGRAM AND IT MAY TRY TO BOOST WHITECOLLAR MORALE BY GIVING BACK LOST HEALTHCARE BENEFITS IN ADDITION GM AGREED IN CONNECTION WITH THE TENTATIVE CONTRACT WITH THE UNITED AUTO WORKERS UNION TO DELAY SHUTTING DOWN TWO FACTORIES AND CANCEL THE SALE OF A UAWREPRESENTED UNIT THE KALAMAZOO MICH STAMPING PLANT ONCE SCHEDULED TO CLOSE IN 1995 NOW WON'T SHUT UNTIL 1998 WHILE THE TARRYTOWN NY ASSEMBLY PLANT WILL STAY OPEN AN EXTRA YEAR UNTIL 1996 GM ALSO SAID YESTERDAY IT WAS ENDING ITS SEARCH TO FIND A PARTNER FOR ITS LOCOMOTIVE GROUP WHICH EMPLOYS 5000 WORKERS IN THE US AND CANADA THE EMERGING DETAILS OF THE TENTATIVE UAWGM CONTRACT WHICH STILL MUST BE APPROVED BY UAW LOCAL LEADERS AND RANKANDFILE MEMBERS THROW MORE LIGHT ON HOW GM PURCHASED LABOR PEACE AND SOME ADDITIONAL RESTRUCTURING FLEXIBILITY BY AGREEING TO SLOW SOME COSTCUTTING MOVES AND GIVE RICHER SETTLEMENTS TO DEPARTING WORKERS GM OFFICIALS HAVE ACKNOWLEDGED PREVIOUSLY THAT THE COMPANY WILL LIKELY OFFER ANOTHER RETIREMENT PROGRAM FOR BLUECOLLAR WORKERS EARLY NEXT YEAR SUCH A PROGRAM EARLIER THIS YEAR CONVINCED ABOUT 16000 UAW WORKERS TO RETIRE THE SWEETEST INCENTIVES IN THE RETIREMENT DEAL ANTICIPATED IN THE NEW CONTRACT WILL BE AIMED AT WORKERS IN FOUR ASSEMBLY PLANTS THAT GM HAS CLOSED OR PLANS TO CLOSE THE LOCATIONS INCLUDE YPSILANTI MICH VAN NUYS CALIF WILMINGTON DEL AND TARRYTOWN WORKERS AT THESE PLANTS WILL BE ABLE TO RETIRE AS YOUNG AS AGE 50 AND RECEIVE VOUCHERS OF 10000 TOWARD THE PURCHASE OF A NEW GM CAR PLUS MORE THAN 3000 IN CASH TO COVER TAXES ACCORDING TO UNION OFFICIALS UNLIKE A NORMAL RETIREMENT WORKERS TAKING THESE SPECIAL RETIREMENT PROGRAMS HAVE THE RIGHT TO TAKE ANOTHER JOB WITHOUT REDUCING THEIR GM PENSIONS GM IS OFFERING YET ANOTHER CARROT TO THE 1200 REMAINING WORKERS AT THE VAN NUYS PLANT WHICH CLOSED IN AUGUST 1992 THOSE WORKERS ABLE TO TAKE A NORMAL RETIREMENT WILL BE OFFERED A 15000 VOUCHER TOWARD THE PURCHASE OF A NEW CAR PLUS CASH A UNION NEGOTIATOR SAID YOUNGER WORKERS AT VAN NUYS AND THE OTHER CLOSING PLANTS WHO DON'T QUALIFY FOR EARLY RETIREMENTS WILL BE OFFERED BUYOUTS OF UP TO 100000 TO LEAVE GM NONE OF THE WORKERS AT CLOSED PLANTS WILL BE FORCED TO RETIRE OR LEAVE ACCORDING TO A UNION NEGOTIATOR THEY ALL WILL HAVE THE OPTION OF OBTAINING VIRTUALLY FULL PAY UNTIL THE TENTATIVE AGREEMENT EXPIRES IN 1996 MEANWHILE GM OFFICIALS SAID THEY ARE REVIEWING BENEFITS FOR GM'S WHITECOLLAR WORKERS IN THE WAKE OF MANAGEMENT'S FAILURE TO WIN MEDICALBENEFITS CONCESSIONS FROM THE UAW LAST YEAR GM SLASHED HEALTHCARE BENEFITS FOR ITS SALARIED EMPLOYEES AND GM PRESIDENT JOHN F SMITH JR PROMISED THAT BLUECOLLAR EMPLOYEES WOULD BE ASKED TO MAKE SIMILAR SACRIFICES IN THIS YEAR'S LABOR NEGOTIATIONS MR SMITH YESTERDAY TOLD REPORTERS IN A BRIEF APPEARANCE THAT GM OFFICIALS NOW ARE DEBATING WAYS TO GIVE WHITECOLLAR WORKERS A MORE EQUAL POSITION WITH UAW MEMBERS ONE OPTION WOULD BE TO GIVE SALARIED EMPLOYEES ADDITIONAL CASH TO OFFSET THE INSURANCE PREMIUMS THEY NOW PAY MR SMITH'S TURNABOUT ON WHITECOLLAR HEALTHCARE BENEFITS DIDN'T SURPRISE UAW OFFICIALS WHO VIEWED THE CUTBACKS AS A BARGAINING PLOY WE FIGURED IT WAS JUST A PUBLICRELATIONS SCAM ONE UAW NEGOTIATOR SAID SEPARATELY GM'S ADAM OPEL AG UNIT IN GERMANY SAID YESTERDAY IT REACHED AGREEMENT WITH ITS WORKERS' COUNCIL TO LIMIT WAGE AND BENEFIT GROWTH AND TO RAISE PRODUCTIVITY OVER THE NEXT FOUR YEARS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING GM SHARES ROSE 625 CENTS TO 45375 9310270110 931027 ALLIEDSIGNAL PROFIT INCREASED 24 IN THIRD QUARTER BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL ALLIEDSIGNAL INC'S THIRDQUARTER PROFIT JUMPED 24 TO 168 MILLION OR 119 A SHARE PRIMARILY DUE TO SHARP IMPROVEMENT IN PROFIT MARGINS ACROSS ALL ITS BUSINESSES THE RESULTS WERE SLIGHTLY BETTER THAN WALL STREET ANALYSTS' CONSENSUS ESTIMATE OF 115 A SHARE COMPILED BY ZACKS INVESTMENT RESEARCH AND SCARCELY MOVED THE PRICE OF ALLIEDSIGNAL SHARES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ALLIEDSIGNAL STOCK EASED 125 CENTS TO CLOSE AT 7275 A SHARE LAWRENCE A BOSSIDY CHAIRMAN SAID IN AN INTERVIEW THAT THE LATEST RESULTS REFLECT PAYOFFS FROM THE COMPANY'S COSTCUTTING AND OTHER RESTRUCTURING EFFORTS HE SAID THAT A COMPANYWIDE EFFORT TO REDUCE CYCLE TIME THE TIME IT TAKES TO FILL A CUSTOMER ORDER HAS BEEN A PRINCIPAL PART OF PROFITMARGIN IMPROVEMENT IN THE JUSTENDED QUARTER AND THAT IT WILL HAVE A LOT OF EFFECT IN 1994 IN BOOSTING PROFIT MR BOSSIDY SAID THE FOURTH QUARTER IS LIKELY TO MIRROR THE PERFORMANCE OF THE JUSTENDED PERIOD HE SAID HE EXPECTS FULLYEAR EARNINGS TO FALL PROBABLY IN THE MIDDLE OF ANALYSTS' ESTIMATES WHICH RANGE BETWEEN 450 AND 475 A SHARE IN THE THIRDQUARTER OF 1992 THE MAKER OF AUTOMOTIVE AND AEROSPACE PRODUCTS AND ENGINEERED MATERIALS EARNED 135 MILLION OR 95 CENTS A SHARE SALES IN THIS YEAR'S THIRDQUARTER DECLINED 4 TO 282 BILLION FROM 294 BILLION ALLIEDSIGNAL BASED IN MORRIS TOWNSHIP NJ SAID THAT EXCLUDING THE EFFECTS OF FOREIGN EXCHANGE SALES IN THE LATEST PERIOD WERE ESSENTIALLY FLAT COMPARED WITH A YEAR EARLIER MR BOSSIDY SAID ALL THE COMPANY'S MAJOR BUSINESSES HAD DOUBLEDIGIT EARNINGS INCREASES IN THE JUSTENDED QUARTER DESPITE CONTINUED DIFFICULT CONDITIONS IN MOST OF OUR AEROSPACE AND EUROPEAN AUTOMOTIVE MARKETS HE SAID THE COMPANY'S OPERATING MARGIN ROSE TO 82 FROM 69 IN THE YEARBEFORE QUARTER RETURN ON EQUITY ROSE TO 278 FROM 255 ALLIEDSIGNAL'S AEROSPACE UNIT EARNED 57 MILLION UP FROM 52 MILLION IN THE 1992 THIRDQUARTER ITS AUTOMOTIVE BUSINESS HAD A PROFIT OF 47 MILLION COMPARED WITH 38 MILLION AND ENGINEERED MATERIALS HAD NET INCOME OF 68 MILLION UP FROM 55 MILLION IN THE FIRST NINE MONTHS OF THIS YEAR ALLIEDSIGNAL EARNED 487 MILLION OR 344 A SHARE COMPARED WITH A LOSS OF 850 MILLION OR 605 A SHARE THE YEAR BEFORE THE 1992 FIGURES INCLUDE THE EFFECTS OF CERTAIN ACCOUNTING CHANGES WITHOUT THE CHANGES THE COMPANY EARNED 397 MILLION OR 282 A SHARE SALES IN THE FIRST NINE MONTHS DECLINED 2 TO 878 BILLION FROM 899 BILLION MR BOSSIDY SAID HE EXPECTS RECENTLY ANNOUNCED JOINT VENTURES TO LAY THE FOUNDATIONS FOR SALES INCREASES NEXT YEAR 9310270109 931027 UAL UNION GROUP REVISES OFFER TO ACQUIRE MAJORITY CHICAGO A UNION COALITION AT UNITED AIRLINES SUBMITTED A REVISED PROPOSAL TO ACQUIRE A MAJORITY STAKE IN UAL CORP THE AIRLINE'S HOLDINGCOMPANY THE NEW PROPOSAL ACCORDING TO INDIVIDUALS FAMILIAR WITH THE NEGOTIATIONS DOESN'T DIFFER SUBSTANTIALLY FROM THE ONE PREVIOUSLY ON THE TABLE RATHER THEY SAID IT CONTAINS ADDITIONAL FINANCIAL FORECASTS AND OPERATING SUGGESTIONS TO ARGUE THAT A UNION BUYOUT OFFERS REAL VALUE TO SHAREHOLDERS IN JULY THE PILOTS FLIGHT ATTENDANTS AND MACHINISTS OF UNITED HAD PROPOSED CONCESSIONS WORTH MORE THAN 3 BILLION OVER FIVE YEARS IN EXCHANGE FOR 60 OWNERSHIP OF UAL LAST MONTH THE UNION COALITION ADDITIONALLY PROPOSED CONCESSIONS WORTH MORE THAN 1 BILLION AS PART OF A UNITED PLAN TO SET UP A SEPARATE LOWFARE AIRLINE UAL'S DIRECTORS ARE EXPECTED TO RECEIVE AN UPDATE ON THE BUYOUT TALKS AT A REGULARLY SCHEDULED MEETING TOMORROW THE BUYOUT ATTEMPT HAS AN UNOFFICIAL DEADLINE OF NOV 13 THE CLOSING DATE OF A PROPOSED SALE OF 15 OF UNITED'S US FLIGHT KITCHENS WHICH EMPLOY MEMBERS OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS THE UNIONS HAVE BEEN WORKING AGAINST THAT DEADLINE TO PROTECT THE JOBS OF THE FLIGHTKITCHEN WORKERS 9310270108 931027 CHEVRON PHILLIPS THIRDQUARTER PROFITS FELL AMID SPECIAL ITEMS OIL PRICE DROP BY PAULINE YOSHIHASHI AND CALEB SOLOMON STAFF REPORTERS OF THE WALL STREET JOURNAL CHEVRON CORP AND PHILLIPS PETROLEUM CO REPORTED LOWER THIRDQUARTER NET INCOME WITH CHEVRON'S OPERATING RESULTS IMPROVING SHARPLY AND PHILLIPS'S DECLINING MODESTLY AS BOTH REFLECTED ONETIME CHARGES AND LOWER CRUDEOIL PRICES CHEVRON REPORTED A 10 DROP IN THIRDQUARTER EARNINGS TO 420 MILLION OR 129 A SHARE FROM YEAREARLIER NET INCOME OF 467 MILLION OR 137 A SHARE THE COMPANY SAID SPECIAL CHARGES MASKED A 38 GAIN IN OPERATING RESULTS REVENUE WAS 92 BILLION DOWN 10 FROM 103 BILLION A YEAR EARLIER THE SAN FRANCISCO OIL REFINER AND MARKETER SAID QUARTERLY RESULTS INCLUDED 145 MILLION IN SPECIAL CHARGES THAT ARE MOSTLY ATTRIBUTABLE TO HIGHER CORPORATE TAXES AND OTHER PRIORYEAR TAX ADJUSTMENTS THE 1992 THIRD QUARTER INCLUDED A 57 MILLION GAIN FROM SPECIAL ITEMS BEFORE SPECIAL ITEMS EARNINGS INCREASED TO 565 MILLION FROM 410 MILLION A YEAR AGO CHEVRON SAID CHEVRON CHAIRMAN KEN DERR ATTRIBUTED THE GAINS TO LOWER OPERATING AND ADMINISTRATIVE EXPENSES AS WELL AS TO HIGHER DOMESTIC NATURALGAS PRICES AND HIGHER REFINING AND MARKETING MARGINS THOSE FACTORS MORE THAN OFFSET WEAKER CRUDEOIL PRICES CHEVRON'S OPERATING PROFIT WAS WELL ABOVE MOST ANALYSTS' EXPECTATIONS PAUL TING OF OPPENHEIMER & CO NOTED THAT AMONG OTHER THINGS CHEVRON'S COSTCUTTING PROGRAM HELPED IMPROVE MARGINS FOR DOMESTIC DOWNSTREAM OPERATIONS WHERE OPERATING PROFIT SOARED TO 194 MILLION FROM 90 MILLION A YEAR EARLIER CHEVRON ANNOUNCED ITS RESULTS BEFORE THE CLOSE OF TRADING IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CHEVRON'S STOCK WAS QUOTED AT 9625 UNCHANGED SEPARATELY PHILLIPS BASED IN BARTLESVILLE OKLA SAID ITS NET INCOME FELL 61 BECAUSE OF SHARPLY LOWER OIL PRICES HIGHER EXPENSES FOR DRILLING THAT RESULTED IN DRY HOLES AND WEAK GASOLINE REFINING AND MARKETING MARGINS IN THE QUARTER NET FELL TO 41 MILLION OR 16 CENTS A SHARE FROM 105 MILLION OR 41 CENTS A SHARE A YEAR EARLIER BUT NOT COUNTING ONETIME ITEMS PHILLIPS SAID OPERATING PROFIT SLID ONLY SLIGHTLY IN THE QUARTER TO 56 MILLION FROM 59 MILLION IN THE LATEST PERIOD THE COMPANY TOOK A 20 MILLION CHARGE FOR THE WRITEDOWN OF AN INCINERATOR PROJECT AND HAD ONETIME GAINS OF 5 MILLION THE 1992 QUARTER INCLUDED A 78 MILLION GAIN FROM REVISED ESTIMATES OF TAX OBLIGATIONS REVENUE INCREASED 19 TO 319 BILLION FROM 313 BILLION PHILLIPS SAID IT RECEIVED AN AVERAGE OF 1530 A BARREL FOR OIL IT SOLD DOWN FROM 1905 A YEAR EARLIER WHILE NATURALGAS PRICES WERE SLIGHTLY HIGHER THE COMPANY SAID ITS GAS PRODUCTION FELL IN THE QUARTER GASOLINE REFINING AND MARKETING BENEFITED FROM LOWER PRICES OF OIL THE FEEDSTOCK FOR GASOLINE BUT WERE HURT BY LOWER SALES PRICES PHILLIPS SAID 9310270107 931027 INTERNATIONAL RUSSIA MOVES TO DISMANTLE COLLECTIVEFARMING SYSTEM PROVINCE'S PILOT PROGRAM COULD BE A STEP TOWARD PRIVATE OWNERSHIP BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL BUTURLINO RUSSIA THE FIRST STEP TOWARD DECOLLECTIVIZING RUSSIAN AGRICULTURE CAME WITH THE DISTRIBUTION OF SHARE CERTIFICATES ON SIX STATE FARMS IN NIZHNY NOVGOROD PROVINCE THE CERTIFICATES GRANTING SHARES IN THE LAND AND EQUIPMENT OF THE FARMS ARE PART OF A PILOT PROGRAM SPONSORED BY BORIS NEMTSOV THE PROGRESSIVE YOUNG GOVERNOR OF NIZHNY NOVGOROD WHO HAS BECOME A LEADER IN IMPLEMENTING ECONOMIC REFORMS RUSSIAN EXPERTS AND THE INTERNATIONAL FINANCE CORP AN ARM OF THE WORLD BANK HAVE SPENT SEVEN MONTHS MEETING WITH FARMERS AND PREPARING THE PROJECT NIZHNY NOVGOROD PROVINCE IS ABOUT 300 MILES EAST OF MOSCOW AT NIVA STATE FARM WORKERS AND PENSIONERS COLLECT THEIR PROPERTY CERTIFICATES AND THEN FILE INTO AN AUDITORIUM FOR A DISCUSSION IT STARTS WITH A SERIES OF UPBEAT SPEECHES BY THE GOVERNOR AND OTHER OFFICIALS ON HOW EACH FARMER WILL BE ABLE TO CHOOSE FOR HIMSELF WHAT TO DO WITH HIS LIFE AND PROPERTY BUT IT QUICKLY TURNS INTO A SHOUTING MATCH YOU SAY YOU'RE NOT TRYING TO FORCE US INTO ANYTHING BUT IF WE WANT TO STAY WORKING IN A COLLECTIVE WHAT DO WE NEED THIS CERTIFICATE FOR DEMANDS A WOMAN MR NEMTSOV TRIES TO CALM THE CROWD OK THEN WHAT YOU DO IS YOU ALL GET TOGETHER AND POOL YOUR CERTIFICATES AND IF EVERYONE AGREES YOU'VE GOT YOUR FARM IF NOT YOU HAVE SEVERAL FARMS IT'S FULL CHOICE FREEDOM FOR YOU CHOICE LIKE YOU'VE NEVER HAD HIS COMMENTS ARE DROWNED OUT BY SHOUTS OF WE DON'T WANT ANY CHOICE THAT'S A DEEPLY HELD FEELING AMONG FARM WORKERS WHO FOR NEARLY 70 YEARS HAVEN'T HAD TO MAKE CHOICES EVEN BEFORE THE BOLSHEVIK REVOLUTION THE TRADITION OF PRIVATE FARMING WASN'T WELL ESTABLISHED IN TSARIST RUSSIA LARGE LANDHOLDINGS AND COMMUNAL FARMS PREDOMINATED LATER STALIN FORCED FARMERS TO COLLECTIVIZE SENDING RESISTERS TO PRISON THE AIM WAS TO REPLACE THE FARM WITH THE AGROINDUSTRIAL COMPLEX FARMERS BECAME WORKERS HOUSED IN APARTMENT BLOCKS WORKING SEVENHOUR SHIFTS AND RECEIVING MONTHLY SALARIES JUST LIKE FACTORY WORKERS BUT THE SYSTEM HAS FAILED MISERABLY SINCE THE 1970S THE SOVIET UNION HAS GENERALLY HAD TO IMPORT ABOUT 15 OF ITS ANNUAL GRAIN NEEDS IN 1990 RUSSIA PASSED A LAW ON FARM PRIVATIZATION THAT PAVED THE WAY FOR SOME STATE FARMS TO ALLOCATE BITS OF LAND TO FARMERS WHO WANTED TO TRY GOING IT ALONE UNDER ECONOMIC REFORMS LAUNCHED IN 1992 ALL STATE FARMS WERE SET LOOSE FROM CENTRAL CONTROL AND FORCED TO FIND THEIR OWN MARKETS AND HANDLE THEIR OWN ACCOUNTING SMALLFAMILY PLOTS AND PRIVATE FARMS TODAY USE NEARLY 8 OF RUSSIA'S AGRICULTURAL LAND AND PROVIDE AS MUCH AS ONETHIRD OF THE NATION'S PRODUCE ACCORDING TO VASILY UZUN AN AGRICULTURE SPECIALIST WORKING ON THE NIZHNY NOVGOROD PROGRAM STATE AND COLLECTIVE FARMS STILL CONTROL 92 OF THE FARM LAND AND HOUSE 30 MILLION PEOPLE LAND CANNOT BE FREELY BOUGHT AND SOLD RUSSIANS CAN OWN CERTAIN KINDS OF LAND BUT ARE RESTRICTED IN WHEN AND TO WHOM THEY CAN SELL IT BUT PRESIDENT BORIS YELTSIN IS MOVING TO ELIMINATE THESE RESTRICTIONS VICE PREMIER YEGOR GAIDAR TOLD A NEWS CONFERENCE YESTERDAY THAT A DECREE ON THE SUBJECT HAS BEEN APPROVED AND WILL BE SIGNED BY THE PRESIDENT TODAY OR TOMORROW THE NIZHNY NOVGOROD REFORM TEAM SPENT MONTHS TALKING WITH FARMERS AND FARM DIRECTORS TRYING TO WORK OUT WHAT WOULD BE DEEMED A FAIR SYSTEM THEY FOUND THEY COULDN'T RELY ON LANDREFORM METHODS USED ELSEWHERE THEY COULDN'T SEEK OUT ORIGINAL FARM OWNERS AND THEIR DESCENDANTS AS SOME EASTERN EUROPEAN COUNTRIES HAVE DONE BECAUSE COLLECTIVIZATION TOOK PLACE SO LONG AGO AND DOCUMENTATION IS NEARLY NONEXISTENT THEY ALSO COULDN'T SIMPLY DIVIDE FARMS BETWEEN ALL CURRENT RESIDENTS BECAUSE NOT ENOUGH OF THE RESIDENTS WANTED TO BECOME PRIVATE FARMERS SO THE PROGRAM WAS DESIGNED TO GIVE EVERY RESIDENT AN EQUAL STAKE IN THE LAND AND VARYING STAKES IN THE FIXED ASSETS OF THE FARM DEPENDING ON SENIORITY EACH PERSON CAN DECIDE WHETHER TO USE HIS CERTIFICATES TO ACQUIRE PROPERTY FOR HIMSELF OR TO POOL HIS PROPERTY WITH THAT OF OTHERS IN ORDER TO WORK COOPERATIVELY EACH RESIDENT MAKES HIS OWN CHOICE ABOUT HOW TO PARTICIPATE THE PLANNERS' BIGGEST CONCERN WAS TO ASSURE THAT THE FARMS BREAK UP BUT NOT INTO SO MANY TINY PIECES THAT FARMING BECOMES UNVIABLE RETIREES WHO HAVE SPENT THEIR LIVES ON A FARM AND DON'T WANT TO PARTICIPATE IN PRIVATIZATION WILL BE ALLOWED TO TURN OVER THEIR LAND RIGHTS TO THE GOVERNMENT IN EXCHANGE FOR A GUARANTEED LIFETIME SUPPLEMENT TO THEIR PENSIONS THEY ALSO WILL BE GUARANTEED HOUSING THE FIRST SIGNS OF THE PROGRAM ARE ENCOURAGING ALREADY ANOTHER 25 FARMS HAVE EXPRESSED INTEREST IN JOINING THE PILOT PROGRAM SAYS ANTHONY DORAN MANAGER OF THE IFC'S EUROPEAN DEPARTMENT ON PRAVDINSKY STATE FARM THE FIRST TO DISTRIBUTE CERTIFICATES FARMERS STARTED MEETING PRIVATELY AND IN SMALL GROUPS LOOKING FOR PARTNERS A BUSLOAD OF PENSIONERS SPENT A DAY WITH IFC WORKERS GOING OVER THE PROCESS IN DETAIL SO FAR SOME HALFDOZEN PARTNERSHIPS HAVE BEEN FORMED SOME SEEKING AS MUCH AS 1000 HECTARES 2470 ACRES OF LAND THE MAJORITY OF PRAVDINSKY RESIDENTS WANT TO KEEP WORKING COLLECTIVELY I DON'T WANT A LOT OF CHANGE SAYS ALEVTINA FILIPOVA A 46YEAROLD DAIRY WORKER OF COURSE IT'S GOOD TO BE ABLE TO MAKE OUR OWN DECISIONS BUT IT'S A RESPONSIBILITY AFTER THE DECOLLECTIVIZATION I EXPECT IT WILL LOOK JUST THE SAME I DON'T EXPECT MUCH IMPROVEMENT LIFE'S LIKE THAT FOR US SHE SAYS MATTEROFFACTLY THAT KIND OF FATALISM AND LACK OF DRIVE IS ONE OF THE BIGGEST PROBLEMS UNDERLYING PRIVATIZATION OF FARMS WHEN COLLECTIVIZATION STARTED THE BOLSHEVIKS WON SUPPORT FOR IT BY PLAYING UPON THE ENVY THE POORER PEASANTS FELT OF THE KULAKS RICHER MORE ENTERPRISING FARMERS KULAKS WERE WIPED OUT LEAVING RUSSIAN AGRICULTURE IN THE HANDS OF THE LEAST VIGOROUS THE BIGGEST PROBLEM IS THAT NO ONE WANTS TO BE A LEADER OF A TEAM SAYS FARM EXPERT MR UZUN MANY ARE READY TO JUST HAND OVER THEIR SHARES BUT NOBODY WANTS TO TAKE ON THE RESPONSIBILITY TO LEAD BUT COMMERCIAL OPPORTUNITY IS CREATING SOME LEADERS MANY OF THEM THE DIRECTORS AND MANAGERS ALREADY IN PLACE AT THE FARMS PRAVDINSKY DIRECTOR VALERY SHATOV 44 YEARS OLD HAS DRAWN TOGETHER ABOUT 80 WORKERS AND 70 PENSIONERS WHO ARE POOLING 160 LAND SHARES AND 140 EQUIPMENT SHARES TO BID FOR 1000 HECTARES AND 400 COWS I'LL BE WORKING IN MILK PRODUCTION HE SAYS WE'LL GET 1200 TONS OF MILK A YEAR THE FARM'S 27YEAROLD ECONOMIC DIRECTOR VLADIMIR GUSEV IS FORMING A PARTNERSHIP TO HANDLE MARKETING FOR THE PRIVATEFARMSTOBE COMPETITION IS ALSO HEATING UP A YOUNG RESIDENT OF THE FARM WHO BEGAN TILLING HIS OWN 12 HECTARES ABOUT 30 ACRES A YEAR AGO MADE A KILLING IN POTATOES NOW HE IS BACK AND HOPES TO BECOME AN AGRICULTURAL TYCOON THROUGH THE NEW PRIVATIZATION HE IS OFFERING TO AT LEAST TRIPLE THE RENTAL PRICE OF LAND BEING OFFERED BY MR SHATOV THE FARM DIRECTOR HE HOPES TO ACQUIRE RIGHTS TO 200 HECTARES 494 ACRES PEOPLE UNDERSTAND THEIR OWN SELF INTEREST AND ACT ON IT SAYS IFC MANAGER MR DORAN PEOPLE ARE NOT STUPID AND RUSSIANS ARE NOT SPECIAL ALL THE TRUTHS ARE TRUE 9310270106 931027 INTERNATIONAL BRIEF FERRANTI INTERNATIONAL PLC TALKS WITH POSSIBLE SUITOR CAUSE STOCK PRICE TO PLUNGE FERRANTI INTERNATIONAL PLC A BRITISH ELECTRONICS AND TELECOMMUNICATIONS COMPANY SAID IT IS ENGAGED IN DISCUSSIONS WITH A POTENTIAL SUITOR WHICH MAY OR MAY NOT LEAD TO A ONEPENCEASHARE OFFER FERRANTI STOCK WHICH HAS BEEN TRADING MUCH HIGHER THAN THAT LEVEL PLUNGED ON THE NEWS YESTERDAY IT FELL 73 ON THE LONDON STOCK EXCHANGE TO 25 PENCE 37 CENTS A SHARE FROM 925 PENCE FERRANTI DIDN'T DISCLOSE THE IDENTITY OF THE POTENTIAL SUITOR A FEW DAYS AGO FERRANTI SAID IT EXPECTED TO REPORT THAT RESULTS FOR THE SIX MONTHS ENDED SEPT 30 WILL ALMOST CERTAINLY SHOW LOSSES WIDENING FROM YEAREARLIER LEVELS IN THE YEAREARLIER PERIOD FERRANTI HAD A PRETAX LOSS OF 109 MILLION 161 MILLION ON SALES OF 1094 MILLION 9310270105 931027 WHAT'S NEWS WORLDWIDE CLINTON'S HEALTH PLAN LIMITS HOW MUCH INDIVIDUALS PAY FOR INSURANCE THE ADMINISTRATION HAS REVISED ITS PROPOSAL TO LIMIT THE AMOUNT INDIVIDUALS WOULD PAY TOWARD THEIR HEALTH INSURANCE TO NO MORE THAN 39 OF THEIR WAGES OFFICIALS SAID THE CHANGE IS ONE OF SEVERAL MADE TO THE 1300PAGE HEALTHCARE BILL THAT THE CLINTONS WILL PRESENT TO CONGRESS TODAY AN EARLIER VERSION OF THE PLAN PUT NO LIMITS ON THE AMOUNT INDIVIDUALS PAID TOWARD INSURANCE THE PLAN'S PROJECTED DEFICIT REDUCTION IS 58 BILLION FROM 1995 THROUGH THE YEAR 2000 LOWERED FROM 91 BILLION IN THE EARLIER DRAFT OF THE PLAN THE LIBERALS' WIN IN CANADA WON'T DERAIL THE NORTH AMERICAN FREE TRADE AGREEMENT PRESIDENT CLINTON PREDICTED DESPITE THAT PARTY'S VOW TO RENEGOTIATE THE ACCORD CANADIAN BUSINESS GROUPS MEANWHILE WELCOMED THE ELECTION OF A LIBERAL GOVERNMENT THAT HAS DISAVOWED PREVIOUS TAXANDSPEND PRACTICES CLINTON UNVEILED TWO LEGISLATIVE INITIATIVES AIMED AT IMPROVING THE PERFORMANCE AND REDUCING THE COST OF GOVERNMENT AND HE SAID THAT SOME OF THE SAVINGS WOULD PAY FOR HIS CRIME BILL THE INITIATIVES ARE INTENDED TO SIMPLIFY PROCUREMENT CONSOLIDATE OFFICES AND BOOST DEBT COLLECTION THE ADMINISTRATION ASKED A SUPREME COURT JUSTICE TO DELAY A LOWER COURT ORDER BANNING DISCRIMINATION AGAINST HOMOSEXUALS IN THE MILITARY THE ORDER WOULD ENABLE THE PENTAGON TO IMPLEMENT A POLICY STATING THAT RECRUITS WON'T BE ASKED THEIR SEXUAL ORIENTATION BUT THAT OPENLY DECLARED HOMOSEXUALS WON'T BE PERMITTED TO SERVE EFFORTS TO END A POLITICAL CRISIS STALLED IN HAITI AFTER FRIGHTENED PRODEMOCRACY SENATORS REFUSED TO COME OUT OF HIDING TO DEBATE LEGISLATION CRUCIAL TO RESTORING OUSTED PRESIDENT ARISTIDE TO POWER DIPLOMATS SAID ARISTIDE'S SCHEDULED RETURN FROM EXILE SATURDAY UNDER A UNBROKERED ACCORD APPEARED TO BE ALL BUT IMPOSSIBLE A JURY IN WASHINGTON CONVICTED FORMER FEDERAL HOUSING AIDE DEBORAH GORE DEAN OF 12 FELONY COUNTS OF DEFRAUDING THE GOVERNMENT TAKING A BRIBE AND LYING TO CONGRESS THE FORMER AIDE TO EXHUD SECRETARY SAMUEL PIERCE COULD BE SENTENCED TO A MAXIMUM 57 YEARS IN PRISON AND 3 MILLION IN FINES UN PEACEKEEPERS ENTERED THE MUSLIM VILLAGE OF STUPNI DO IN CENTRAL BOSNIA AND SAID THEY FOUND EVIDENCE OF A MASSACRE SURVIVORS HAD TOLD REPORTERS MONDAY THAT 80 MUSLIMS WERE KILLED OVER THE WEEKEND BY MASKED CROAT TROOPS SEPARATELY THE BOSNIAN GOVERNMENT ARRESTED 200 SUSPECTED ARMY RACKETEERS IN SARAJEVO THE NAVY REPORTED THAT TWO NUCLEARPOWERED US ATTACK SUBMARINES THAT SANK IN THE ATLANTIC IN 1963 AND 1968 HAVE CAUSED NO RADIOACTIVE HARM TO THE OCEAN AND ARE UNLIKELY TO DO SO THE NAVY SAID NO RADIOACTIVE LEAKAGE HAS BEEN DETECTED AT THE SITES OF THE SUNKEN SCORPION OFF THE AZORES OR THE THRESHER WHICH SANK OFF NEW ENGLAND STATEOWNED FARMS WILL BE DIVIDED UP UNDER A PILOT PROJECT IN RUSSIA AIMED AT PAVING THE WAY FOR PRIVATE LAND OWNERSHIP OFFICIALS SAID THE FIRST STEP TOWARD BREAKING UP THE COLLECTIVE FARMS CAME WITH THE DISTRIBUTION OF SHARE CERTIFICATES AT SIX FARMS NEAR NIZHNY NOVGOROD PROTESTANT GUNMEN KILLED TWO GARBAGE COLLECTORS AND WOUNDED FIVE OTHERS IN A CATHOLIC ENCLAVE OF BELFAST AND A SOLDIER REPORTEDLY FIRED ON A CROWD WOUNDING A CATHOLIC MAN PROTESTANT EXTREMISTS IN NORTHERN IRELAND HAVE VOWED TO AVENGE THE DEATHS OF 10 PEOPLE KILLED IN AN IRISH REPUBLICAN ARMY BOMB ATTACK SUNDAY SECRETARY OF STATE CHRISTOPHER ARRIVED IN LATVIA AND IMMEDIATELY CALLED ON RUSSIA TO WITHDRAW ITS REMAINING 16000 TROOPS FROM THE BALTIC STATE EARLIER IN BELARUS HE THANKED THAT FORMER SOVIET REPUBLIC FOR MOVING TO DISMANTLE ITS NUCLEAR WEAPONS BATTLING SOMALIS FIRED ON RELIGIOUS LEADERS TRYING TO MEDIATE A CEASEFIRE IN A THREEDAYOLD FIGHT OVER A WELL IN THE SOUTHERN PART OF MOGADISHU NO ONE WAS HURT AND THE CLAN ELDERS LATER NEGOTIATED A FOURHOUR HALT TO THE CLASHES THE NFL AWARDED A TEAM TO CHARLOTTE NC FOR THE 1995 SEASON BUT DELAYED ITS SELECTION OF A SECOND NEW FRANCHISE FOUR CITIES ARE IN COMPETING FOR THE FINAL SPOT IN THE NATIONAL FOOTBALL LEAGUE 9310270104 931027 VESTIGES OF SUCCESS AS IBM LOSSES MOUNT SO DO THE COMPLAINTS ABOUT COMPANY PERKS THE LAIDOFF SEE LITTLE MERIT IN PLANES COUNTRY CLUBS AND GOLDEN CIRCLE BASHES FIRM CITES BUSINESS PURPOSES BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL IN MAY 1993 INTERNATIONAL BUSINESS MACHINES CORP WAS IN THE THROES OF THE WORST CRISIS IN ITS HISTORY BUT YOU WOULDN'T HAVE GUESSED THAT HAD YOU WANDERED INTO THE BREAKERS RESORT IN PALM BEACH FLA BETWEEN MAY 5 AND 13 THERE IBM WAS STAGING ITS ANNUAL GOLDEN CIRCLE A CELEBRATION FOR 330 OF ITS BEST SALESPEOPLE AND THEIR SPOUSES IBM FLEW IN BOB NEWHART FOR STANDUP COMEDY IT HIRED LARRY KING TO STAGE A MOCK TALK SHOW ON CURRENT EVENTS FOR EVENING ENTERTAINMENT THE MONEYLOSING COMPUTER GIANT RENTED A MUSEUM AND TREATED EVERYBODY TO VEAL AND SALMON A FIVEACT CIRCUS CASINO GAMES AND LIZA MINNELLI PERFORMING IN PERSON ONCE THE WORLD'S MOST PROFITABLE COMPANY IBM SPENT DECADES ADDICTING ITSELF TO PERKS PARTIES AND ONE OF THE MOST ELABORATE CORPORATE BUREAUCRACIES NOW WHEN IT CAN LEAST AFFORD THEM IBM IS FINDING ITS OLD HABITS HARD TO BREAK WITHIN THE PAST EIGHT YEARS IBM HAS MOVED TO ELIMINATE 180000 OF 405000 JOBS CHOPPED A BILLION DOLLARS FROM ITS YEARLY RESEARCH BUDGET AND WRITTEN OFF 28 BILLION YESTERDAY IT REPORTED A FOURTH STRAIGHT QUARTERLY OPERATING LOSS 48 MILLION AS ITS VAST MAINFRAMECOMPUTER BUSINESS CONTINUED TO SLIP THE RESULTS BROUGHT IBM'S NET LOSS FOR THE YEAR SO FAR TO 837 BILLION ONE OF THE BIGGEST DEFICITS IN BUSINESS HISTORY IBM HAS MADE SWEEPING CUTBACKS IN ITS PERKS AND EXPENSES YET THE COMPANY STILL MAINTAINS THREE COUNTRY CLUBS FOR ITS EMPLOYEES WITH GOLF COURSES BOWLING ALLEYS AND SKEETSHOOTING IT STILL SHIPS EMPLOYEES TO ITS OWN MANAGEMENT SCHOOL WHICH HAS A LANDSCAPED 26ACRE CAMPUS TENNIS COURTS AND A 160ROOM HOTEL IT STILL RUNS AN INHOUSE TELEVISION NETWORK LEASING A SATELLITE 24 HOURS A DAY TO BEAM SHOWS ABOUT IBM TO TV SETS AROUND THE EMPIRE EXECUTIVES CRISSCROSS THE GLOBE IN SEARCH OF FAT TO ELIMINATE ON NINE PRIVATE JETS ONE OF CORPORATE AMERICA'S BIGGER PRIVATE FLEETS IBM ROUTINELY DOES THINGS FIRSTCLASS IN COUNTLESS SMALLER WAYS ONE EXAMPLE IN THE MIDST OF RECORD LOSSES LAST YEAR IT SPENT 75000 TO PRODUCE A 12MINUTE FILM INSTRUCTING EMPLOYEES IN HOW TO USE A NEW PHONE SYSTEM AND EVEN AFTER YEARS OF CUTS IBM STILL SPENDS MILLIONS EMPLOYING LEGIONS OF PEOPLE TO PORE OVER THE MINUTEST DETAILS OF ITS DAILY AFFAIRS IT HAS A PERSONNEL DEPARTMENT OF 2859 PEOPLE MORE PER EMPLOYEE THAN 75 OF OTHER LARGE COMPANIES AND IT HAS FIVE PROFESSIONAL NAMERS WHOSE JOB IT IS TO OVERSEE THE NAMING OF IBM PRODUCTS MANY SUCH EXPENSES ARE STANDARD AT BIG CORPORATIONS AT IBM EXECUTIVES CALL THEM VITAL AND AFFORDABLE FOR A COMPANY WITH 65 BILLION IN ANNUAL REVENUE THAT EVEN IN DISTRESS STILL HAS 267000 EMPLOYEES IN 140 COUNTRIES BUT NO OTHER COMPANY RIGHT NOW IS SUFFERING LOSSES AND LAYOFFS TO COMPARE WITH IBM'S TO MANY EMPLOYEES AND SHAREHOLDERS WHO ARE CASUALTIES OF IBM'S TROUBLES ITS CONTINUED BIG SPENDING IS GALLING YOU THINK OF ALL THE OTHER WAYS THEY COULD CUT BACK AND THEY'RE NOT DOING IT SAYS DOROTHY WARMACK A PERSONNEL ADMINISTRATOR LAID OFF IN JUNE AFTER 15 YEARS AT IBM I THINK THEY SHOULD BE A NOFRILLS KIND OF COMPANY NOW IF THEY COULD SAVE A COUPLE OF HUNDRED PEOPLE'S JOBS I THINK THAT'S WHAT THEY SHOULD DO IBM OFFERS THE STARKEST EXAMPLE OF A PROBLEM FACING COUNTLESS COMPANIES STRUGGLING WITH RECESSION AND RETRENCHMENT HOW DO YOU CONTINUE TO JUSTIFY THE EXPENSIVE OLD TRAPPINGS OF SUCCESS WHILE ASKING SO MANY TO SACRIFICE ON THE OTHER HAND WHEN DOES COSTCUTTING RUN SO DEEP THAT IT HURTS A COMPANY'S CULTURE AND MORALE IN THE CASE OF IBM WHAT BOTHERS CRITICS ISN'T SO MUCH THE FINANCIAL IMPACT OF IBM'S SURVIVING FRILLS BUT RATHER THE TIMING AND APPEARANCES IN DECEMBER IBM ANNOUNCED THAT IT EXPECTED TO IMPOSE LAYOFFS FOR THE FIRST TIME IN HALF A CENTURY A WEEK LATER IBM PROUDLY UNVEILED ONE OF ITS FLASHIEST MARKETING EFFORTS SPENDING A REPORTED 8 MILLION TO SPONSOR THE ANNUAL FIESTA BOWL FOOTBALL GAME IN TEMPE ARIZ NEWS STORIES EXPRESSED AMAZEMENT THAT HARDHIT IBM WAS SPENDING MILLIONS ON FOOTBALL GAMES AND SPORTSWRITERS HOOTED AT THE EVENT'S NERDY NEW NAME THE IBM OS/2 FIESTA BOWL IBM MEANS IT BAFFLES ME READ AN ARIZONA REPUBLIC HEADLINE IBM'S TROUBLES ALSO DIDN'T KEEP IT FROM BUYING A FLOAT IN THE ROSE BOWL PARADE LAST NEW YEAR'S DAY IT WAS FESTOONED WITH FLOWERS A TUDOR HOUSE AND SCHOOLCHILDREN PECKING AWAY AT MULTIMEDIA COMPUTERS A SPOKESMAN SAYS IBM SPENT ABOUT 200000 ON THE FLOAT A SMALL INVESTMENT FOR THE RECOGNITION WE GOT BUT THE SIGHT OF IT DISMAYED WESLEY MERCHANT WHO TOOK AN EARLYRETIREMENT PACKAGE AFTER 28 YEARS WITH IBM BECAUSE HE WORRIED HE WOULD BE LAID OFF OTHERWISE SOON AFTERWARD IBM CUT RETIREES' BENEFITS HERE THEY SAY THEY DON'T HAVE ANY MONEY AND THEY'RE CUTTING BENEFITS AND THEN THEY TURN AROUND AND DROP A QUARTER OF A MILLION DOLLARS TO BUY A BIG FLOWERPOT THAT'S GOING TO LAST FOR ONLY A FEW HOURS HE SAYS IBM PLANS AN EVEN BIGGER MARKETING EXTRAVAGANZA FOR THE COMING WINTER AND SUMMER OLYMPIC GAMES IT IS ONE OF A HANDFUL OF COMPANIES THAT WILL PAY ABOUT 40 MILLION EACH TO BE OFFICIAL SPONSORS THE MOST EXPENSIVE SPORTSSPONSORSHIP DEAL EVER ALREADY IBM HAS FOUR EMPLOYEES SHUTTLING BACK AND FORTH TO LILLEHAMMER NORWAY SITE OF THE 1994 WINTER GAMES IBM SAYS THE PRECISE COST OF ITS SPONSORSHIP ISN'T CLEAR BECAUSE IT IS PAYING ENTIRELY IN PRODUCTS AND SERVICES MANY IBM STOCKHOLDERS ALSO FEEL AGGRIEVED IBM WAS LONG CONSIDERED THE SAFEST OF ALL BLUECHIP STOCKS ITS STEADILY RISING SHARE PRICE AND GENEROUS DIVIDEND MADE IT THE MAINSTAY OF THOUSANDS OF INVESTORS' PORTFOLIOS IBM STOCK HAS LOST NEARLY 75 OF ITS VALUE IN THE PAST SIX YEARS THIS YEAR IBM HURT SHAREHOLDERS FURTHER BY CHOPPING ITS ANNUAL DIVIDEND 79 TO 1 A SHARE THE BONUSES AND THE PERKS ARE IN THE OZONE THEY'RE FROM CORPORATE MARS AND THEY DON'T REFLECT THE PERFORMANCE OF THE COMPANY SAYS IBM SHAREHOLDER GILBERT JANNELLI A CLEARWATER FLA OPTOMETRIST WHO HAS TRIED TO MONITOR THE BIG EXPENSES THAT ENDURE AT IBM MY VEINS ARE STARTING TO BLOW IN MY NECK IBM IS HARDLY THE ONLY COMPANY FINDING IT DIFFICULT TO WEAN ITSELF FROM THE LUXURIES SUCCESS AFFORDED A NEW STUDY OF PERKS AT 1000 COMPANIES FOUND ONLY MODEST CUTBACKS IN THE PAST SIX YEARS DESPITE LOTS OF TALK IN CORPORATE AMERICA ABOUT GETTING LEAN AND MEAN HAY GROUP THE BENEFITS CONSULTANT THAT CONDUCTED THE STUDY FOUND THAT NEARLY A THIRD OF LARGE COMPANIES SURVEYED STILL TREAT EXECUTIVES TO COUNTRYCLUB MEMBERSHIPS DOWN FROM 42 IN 1987 ATHLETICCLUB MEMBERSHIPS UNCHANGED AT 18 CHAUFFEURS DOWN TO 11 FROM 14 WHEN YOU'RE TALKING ABOUT PERKS YOU'RE NOT JUST ASKING COMPANIES TO REPLACE OLD HABITS WITH NEW HABITS YOU'RE ASKING THEM TO GIVE UP PLEASURE WITH NO COMPENSATION EXCEPT MAYBE THE SURVIVAL OF THE COMPANY SAYS EDWARD LAWLER A UNIVERSITY OF SOUTHERN CALIFORNIA MANAGEMENT PROFESSOR IBM HE ADDS IS THE MOST DIFFICULT ORGANIZATION IN THE WORLD TO CHANGE IT HAD A COMBINATION OF THE STRONGEST CULTURE THE MOST REVERED MANAGEMENT SYSTEMS AND THE HIGHEST SUCCESS ALL THE CONDITIONS FOR CHANGE WERE ABSENT IBM OFFICIALS GIVE A SOBER BUSINESS RATIONALE FOR EACH CRITICIZED FRILL THE TV BROADCASTING CUTS DOWN ON TRAVEL EXPENSES FOR SPEECHES AND CLASSES JUST BECAUSE TIMES ARE BAD IBM CAN HARDLY ABANDON HIGHPROFILE MARKETING EVENTS THE AIRPLANES SAVE EXECUTIVES' VALUABLE TIME AS THEY HOP ACROSS IBM'S EXTRAORDINARILY FARFLUNG DOMAIN AS FOR THE PARTIES AND THE COUNTRY CLUBS EXECUTIVES SAY THEY WANT IBM TO BE AN ATTRACTIVE PLACE TO WORK ESPECIALLY IN THESE HARD TIMES LOOK THE PEOPLE WHO REMAIN ARE HIGH PERFORMERS AND NEED TO BE REWARDED DECLARES IBM SENIOR VICE PRESIDENT GERALD CZARNECKI A BANK TURNAROUND VETERAN WHO JOINED IBM IN MAY AS CEO LOUIS GERSTNER'S TOP AIDE FOR ADMINISTRATION AND HUMAN RESOURCES YOU CAN'T FIND ONE COMPANY ANYWHERE THAT DOES NOT HAVE CLEAR SHARPLY FOCUSED RECOGNITION EVENTS FOR THE TOP PERFORMERS ALL THE WHILE IBM'S NEW TEAM OF COLDEYED COSTCUTTERS IS MOVING QUICKLY TO SLASH 7 BILLION FROM THE COMPANY'S 27 BILLION ANNUAL EXPENSE BUDGET THE PERSONNEL STAFF HAS SHRUNK 56 SINCE 1986 IBM SAYS IT HAS CUT ITS MANAGEMENT SCHOOL'S BUDGET 45 IN THE PAST FIVE YEARS AND MIGHT SELL IT IF THE REALESTATE MARKET WEREN'T SO WEAK WHEN VISITORS CALL ON MR CZARNECKI HE SERVES THEM PLASTICWRAPPED SANDWICHES AND SODA IN A PAPER CUP MR CZARNECKI ACKNOWLEDGES THAT SOME SPENDING LOOKS UNFAIR TO EXEMPLOYEES YOU CAN'T JUSTIFY TO SOMEBODY WHO HAS BEEN LAID OFF ANY EXPENDITURE ABOVE AND BEYOND THE SALARY THEY GOT HE SAYS BUT HE VOWS THERE'S A VERY REAL NONONSENSE GUTLEVEL UNDERSTANDING THAT THIS COMPANY HAS TO DOWNSIZE ITS STAFFING LEVELS AND DOWNSIZE HOW IT SPENDS MONEY NEVERTHELESS EXPENSIVE VESTIGES OF THE GREAT IBM EMPIRE STILL FLOURISH THE MOST CHERISHED OF ALL THE 50YEAROLD GOLDEN CIRCLE DATES BACK TO IBM'S PATERNALISTIC FOUNDER THOMAS J WATSON LEGENDARY FOR HIS EXTRAVAGANT EMPLOYEE PEP RALLIES IN 1939 MR WATSON SPENT A MILLION DOLLARS FULLY 10 OF IBM'S PROFIT THAT YEAR TO SHIP 10000 EMPLOYEES AND GUESTS ON CHARTERED TRAINS TO THE WORLD'S FAIR IN NEW YORK EACH YEAR HE PUT UP AN ENORMOUS TENT CITY IN IBM'S ORIGINAL FACTORY TOWN OF ENDICOTT NY TO PLAY HOST TO THE HUNDRED PERCENT CLUB FOR SALESMEN WHO MET THEIR QUOTAS AS A BAND PLAYED THE SALESMEN WOULD SING THE OFFICIAL CLUB SONG EXPRESSED IN MR WATSON'S SMILE OH BOYS IT'S TRULY GREAT TODAY IN A WHITE PLAINS NY OFFICE COMPLEX IBM HAS A DEPARTMENT WITH A STAFF OF 18 CALLED RECOGNITION EVENTS TO PRODUCE ITS EMPLOYEE PARTIES AND OTHER GATHERINGS THE PRODUCTIONS RANGE FROM MODEST DINNERS ON THE TOWN TO LONGER LEADERSHIP CLUB BASHES AND THE GOLDEN CIRCLE THE PINNACLE OF ALL IBM REWARDS THE RECOGNITIONEVENTS TEAM DEVOTES SPECIAL ATTENTION TO THE CIRCLE OVERSEEING THE LYRICS OF EACH SPECIALLY COMMISSIONED SONG AND THE CONTENTS OF EVERY CELEBRITY SPEECH THIS YEAR'S EXTRAVAGANZA HAD AS ITS THEME PASSION POWER AND PROMISE WITH LASERS SWEEPING AND SMOKE BILLOWING A ROCK TRIO STRUTTED ACROSS THE STAGE SINGING YOU ARE THE FINEST YOU'RE OUT IN FRONT AND LEADING THE WAY A LEADER FOR TOMORROW NO DOUBT ABOUT IT THIS IS YOUR DAY IN ADDITION TO MS MINNELLI AND THE OTHER BIGNAME ACTS IBM ROUNDED UP A COUNTRY COMBO CALLED THE DIXIE CHICKS TRENDSPOTTER FAITH POPCORN A VIDEO ABOUT QUALITY AND A PEP TALK ON CREATIVITY MAE JEMISON THE FIRST BLACK WOMAN IN SPACE SPOKE ABOUT SETTING LIFE GOALS A MIME AND A LASER BEAM WRESTLED FOR FIVE MINUTES AND THEN PERFORMED TOGETHER AN IBM LESSON IN TEAMWORK IN THE AFTERNOONS GUESTS TOOK PRIVATE TENNIS AND GOLF LESSONS THEN EVERYONE GOT A 14KARATGOLD CHARM REPRESENTING A RAINBOW AND A MIME IBM SPENT ABOUT 3 MILLION ON THE CIRCLE AND ABOUT 30 MILLION MORE ON LESS GLITZY VERSIONS OF THE PRODUCTION FOR 8000 EMPLOYEES QUALIFYING FOR ITS LEADERSHIP CLUBS IT CALLS THIS MONEY WELL SPENT TO MOTIVATE ITS MOST PRODUCTIVE PEOPLE AND SOME OUTSIDERS AGREE THERE'S MALAISE THROUGHOUT THE COMPANY AND PROBABLY THE BEST MONEY YOU CAN SPEND IS TO KEEP UP THE MORALE OF THOSE PEOPLE ON WHOM YOU COUNT SAYS UWE REINHARDT A PRINCETON UNIVERSITY ECONOMIST IBM FLEW MR REINHARDT TO THE GOLDEN CIRCLE TO CHAT ABOUT HEALTHCARE REFORM WITH LARRY KING MR REINHARDT FOUND THE OCCASION PERFECTLY APPROPRIATE IF I WERE THE CEO I'D DO IT TOO HE SAYS SOME MAY WONDER WHETHER LARRY KING LIVE AND SOME GOLD JEWELRY REALLY DO LIFT A SALESMAN'S SPIRITS IT APPEARS THEY DO AT IBM THE COMPANY RECENTLY TRIED OFFERING SOME TOP PERFORMERS ABOUT 2000 IN CASH IN LIEU OF A TRIP TO THE LEADERSHIPCLUB EVENT MOST CHOSE THE TRIP IBM SAYS IT HAS CUT THE BUDGET FOR THE GOLDEN CIRCLE AND THE LEADERSHIP CLUBS IN HALF IN THE LAST THREE YEARS BY KEEPING THEM JUST AS DELUXE AS EVER BUT INVITING FEWER EMPLOYEES NEXT YEAR IT PLANS TO INVITE MORE EMPLOYEES TO THE GOLDEN CIRCLE BUT WILL ELIMINATE THE LEADERSHIP CLUBS THAT WOULD STILL LEAVE THE BUDGET AT ROUGHLY 20 MILLION ANOTHER IBM TRADITION STILL PROSPERS IN THE HUDSON RIVER VALLEY TOWN OF POUGHKEEPSIE NY SITE OF AN IBM FACTORY FOR HALF A CENTURY PRIVATE MEMBERS ONLY READS THE SIGN ON A STONE PORTAL TOPPED WITH GREEN LANTERNS A LONG DRIVEWAY LEADS TO A GLEAMING STONE AND GLASS CLUBHOUSE WHERE VISITORS CAN LUNCH ON AN OUTDOOR DECK BEYOND STRETCHES A ROLLING GREEN VISTA WITH AN 18HOLE GOLF COURSE SIX TENNIS COURTS THREE SWIMMING POOLS A JOGGING COURSE AND FIVE BALL FIELDS THIS IS ONE OF THE THREE COUNTRY CLUBS IBM KEEPS FOR ITS EMPLOYEES THEY ARE ANOTHER HOLDOVER FROM THE ERA OF THOMAS WATSON WHOSE SEVERE PORTRAIT WATCHES OVER THE ENTRANCE TO THE POUGHKEEPSIE CLUB MR WATSON BUILT THE FIRST CLUB IN 1931 IN AN OLD SPEAKEASY IN ENDICOTT HE CHARGED EMPLOYEES A DOLLAR A YEAR TO JOIN AND OFFERED FREE DINNER THREE NIGHTS A WEEK TO GIVE IBM WIVES A BREAK FROM COOKING WROTE THE FOUNDER'S SON AND SUCCESSOR THOMAS WATSON JR IN HIS MEMOIRS THE CLUBS HAVE EVOLVED INTO VAST PLAYGROUNDS THE POUGHKEEPSIE CLUB ALSO HAS AN EIGHTLANE BOWLING ALLEY FOUR SQUASH COURTS A WEIGHT ROOM AND A SHOOTING RANGE THE ENDICOTT CLUB NOW HAS GOLF SWIMMING TENNIS BOWLING INDOOR SHOOTING AND A SKEET RANGE A THIRD CLUB IN SANDS POINT NY HAS A PRIVATE BEACH ON LONG ISLAND SOUND FEES HAVE GONE UP SINCE MR WATSON'S DAY TO 1712 A YEAR IN ENDICOTT 25 A YEAR AT THE OTHER CLUBS A DAY OF GOLF COSTS 7 TO 13 ABOUT ONEFOURTH WHAT MOST PRIVATE CLUBS CHARGE MEMBERS IBM IS MOVING TO CUT THE COUNTRY CLUBS' BUDGETS AND OCCASIONALLY RENT THEIR FACILITIES TO OUTSIDERS USING SUCH MEASURES THE POUGHKEEPSIE CLUB IS EXPECTED TO PAY ITS OWN WAY NEXT YEAR IBM WON'T DISCLOSE THE CLUBS' COST TO THE COMPANY BUT CALLS IT RELATIVELY SMALL NUMBERS IN THE SCHEME OF THINGS INSIDE IBM THE NEW GERSTNER TEAM OF EXECUTIVES AGONIZED ABOUT WHAT TO DO ABOUT THE CLUBS THE IBM COMPANY WAS FOUNDED ON THE BELIEF THAT WE WOULD RESPECT THE INDIVIDUAL SAYS MR CZARNECKI INVOKING THE CREDO OF FOUNDER WATSON THE CLUBS HE SAYS ARE SUCH AN IMPORTANT PART OF THE TRADITION AND CULTURE OF THE PEOPLE THERE THAT TO TOTALLY ELIMINATE THEM WOULD BE A DRAMATIC STATEMENT THAT WE NO LONGER CARE ABOUT THEM 9310270103 931027 HEARD ON THE STREET VALASSIS SHARES LOOK GOOD TO SOME INVESTORS AMID SPECULATION THAT RIVAL WILL DROP OUT BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL A BLOODY BATTLE MAY BE ABOUT TO END IN ONE CORNER OF THE ADVERTISING PRINTING BUSINESS AND SOME SAVVY INVESTORS ARE BETTING THAT VALASSIS COMMUNICATIONS WILL EMERGE THE VICTOR VALASSIS OF DETROIT IS IN THE BUSINESS OF PRINTING THE COUPON BOOKLETS THAT ARE TUCKED INTO NEWSPAPERS EACH WEEK AROUND THE COUNTRY FOR VALASSIS THE BUSINESS HAS BEEN A GOOD ONE GENERATING AFTERTAX PROFIT MARGINS OF AROUND 15 IN FACT THE BUSINESS WAS SO SUCCESSFUL THAT THE STOCK SHOT UP FROM AN INITIAL OFFERING PRICE OF 17 IN MARCH 1992 TO A HIGH OF 25 LATE LAST YEAR MORE RECENTLY THE PICTURE HAS CHANGED LATE LAST YEAR SULLIVAN MARKETING A UNIT OF PRINTING COMPANY SULLIVAN COMMUNICATIONS ENTERED THE BUSINESS UNLEASHING A FIERCE PRICE WAR THAT DROVE RATES PER 1000 PAGES TO AS LOW AS 5 FROM AROUND 7 THE PRICECUTTING HURT ALL THE PRINTERS CONCERNED AND VALASSIS' STOCK COLLAPSED TO A LOW THIS WEEK OF 9 3/4 BEFORE EDGING UP TO 10 1/8 YESTERDAY BUT NOW SOME BIG INVESTORS THINK THE BLOODLETTING IS ABOUT TO STOP THEY SUSPECT THAT SULLIVAN MARKETING IS ABOUT TO PICK UP ITS MARBLES AND GO HOME SUCH ASSERTIONS ARE BALDERDASH ACCORDING TO SULLIVAN MARKETING AND ITS PARENT COMPANY BUT THAT ISN'T STOPPING THE SPECULATORS THE PLAY SAYS JAMES ENGLE CHIEF INVESTMENT OFFICER OF WOOD STRUTHERS & WINTHROP IS THAT SULLIVAN MARKETING IS POORLY FINANCED AND CAN'T LAST PAST APRIL PARENT COMPANY SULLIVAN COMMUNICATIONS WAS BOUGHT IN A MORGAN STANLEY LEVERAGED BUYOUT IN FEBRUARY 1993 A MORGAN STANLEY SPOKESMAN SAID YESTERDAY THAT THE INVESTMENT FIRM IS COMMITTED TO THE FREESTANDINGINSERT BUSINESS ANY END TO THE PRICE WAR WOULD BE A GOOD SIGNAL FOR VALASSIS' STOCK IF THERE IS A SIGN THAT SULLIVAN IS ABOUT TO LEAVE THE BUSINESS VALASSIS' STOCK WOULD REBOUND DRAMATICALLY SAYS EDWARD ATORINO A PUBLISHING ANALYST AT DILLON READ I'M TELLING PEOPLE TO BUY VALASSIS WITH THEIR EYES OPEN HE SAYS MEANING THE BATTLE COULD HURT VALASSIS' EARNINGS FOR A WHILE BUT EVENTUALLY HE EXPECTS THE STOCK TO RISE AGAIN DAVID BRANDON CHIEF EXECUTIVE OFFICER OF VALASSIS SAYS THE COMPANY HAS LIVED THROUGH FOUR PREVIOUS PRICE WARS IT'S NOT OUR BUSINESS TO PREDICT WHO'S GOING OUT OF BUSINESS BUT I WILL TELL YOU THIS THE DISCOUNTING IS SUBSTANTIAL AND A SHAKEOUT IS INEVITABLE JAMES SULLIVAN CHAIRMAN OF SULLIVAN COMMUNICATIONS INSISTS THAT THE FREESTANDINGINSERT UNIT HAS NO INTENTION OF THROWING IN THE TOWEL WE'RE LOSING MONEY AND WE INTEND TO FOR TWO YEARS HE SAYS VALASSIS IS TRYING TO WISH US OUT OF THE BUSINESS AND IT'S NOT GOING TO HAPPEN HE ADDS ANALYSTS ARE EXPECTING VALASSIS WHICH REPORTS QUARTERLY EARNINGS TODAY TO SHOW A STEEP DECLINE IN PROFIT MR ATORINO SAYS HE BELIEVES EARNINGS FELL TO 15 CENTS A SHARE FROM 42 CENTS LAST YEAR FOR THE COMPANY'S YEAR ENDING NEXT JUNE HE ESTIMATES EARNINGS WILL FALL TO BETWEEN 30 CENTS AND 35 CENTS A SHARE FROM 189 A SHARE FOR ITS YEAR ENDED IN JUNE 1993 INDEED MR BRANDON SAYS HE'S TELLING INVESTORS NOT TO EXPECT MUCH FROM THE COMPANY'S EARNINGS WE'RE TELLING THE MARKET THAT WE WILL OPERATE THROUGH JUNE OF 1994 AT SLIGHTLY BETTER THAN BREAKEVEN THOUGH THE COMPANY'S CASH FLOW WILL BE SUBSTANTIAL HE SAYS BUT SOME INVESTORS ALREADY HAVE FORGIVEN VALASSIS FOR ITS PROJECTED BAD EARNINGS REPORTS THEIR EYES ARE FOCUSED INSTEAD ON THE TROUBLES OF SULLIVAN MARKETING AND WHETHER IT WILL SOON LEAVE THE BUSINESS SAYS CLIVE MUNRO AN ANALYST WITH MONTECITO RESEARCH IN SANDPOINT IDAHO WHO IS RECOMMENDING THE STOCK TO INSTITUTIONAL INVESTOR CLIENTS SULLIVAN CAN'T WITHSTAND ITS EXTENSIVE LOSSES AND IT WILL NEED TO SHUT ITS DOORS HE SAYS SO FAR THIS YEAR MR MUNRO THINKS SULLIVAN MARKETING HAS LOSSES OF 75 MILLION AND HE BELIEVES IT WILL LOSE AN ADDITIONAL 55 MILLION IN THE FOURTH QUARTER AS EVIDENCE OF SULLIVAN'S PROBLEMS MR MUNRO CITES ITS 14PAGE INSERT THAT WAS INCLUDED IN NEWSPAPERS THIS PAST SUNDAY THAT WAS A MONEYLOSING PROPOSITION HE SAYS SULLIVAN MARKETING ESTIMATES ITS FULLYEAR LOSS AT 12 MILLION A BIT NARROWER THAN THE DEFICIT THE ANALYST PROJECTS MOREOVER MR SULLIVAN SAYS THE COMPANY IS PREPARED TO WITHSTAND LOSSES WE HAVE GOOD SUPPORT FROM OUR INVESTORS HE SAYS BUT MR MUNRO BELIEVES THAT FOR VALASSIS TO THRIVE SULLIVAN MARKETING NEEDS TO FOLD ITS TENT IF THAT HAPPENS HE SAYS THE STOCK WILL RISE TO 26 WITHIN 18 MONTHS 9310270102 931027 IBM POSTS NARROWER 3RDQUARTER LOSS OF 48 MILLION SMALLER THAN EXPECTED BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INTERNATIONAL BUSINESS MACHINES CORP ENDED SEVERAL QUARTERS OF MASSIVE HEMORRHAGING AND POSTED A THIRDQUARTER LOSS SOMEWHAT SMALLER THAN EXPECTED BUT OPERATING RESULTS WERE IN THE RED FOR THE FOURTH CONSECUTIVE QUARTER SHOWING THE DEPTH OF IBM'S PROBLEMS IBM'S CHIEF FINANCIAL OFFICER JEROME YORK SAID IN AN INTERVIEW THAT THE THIRDQUARTER RESULTS WERE NOTHING TO WRITE HOME ABOUT HE REMAINS WORRIED ABOUT CONTINUING PRESSURE ON PROFIT MARGINS ECONOMIC SLUGGISHNESS IN THE US AND EUROPE AND THE LARGE AMOUNT OF CUTTING THAT IBM STILL MUST IMPOSE BEFORE IT GAINS A COMPETITIVE COST STRUCTURE WE HAVE A LONG WAY TO GO IN TERMS OF GETING OUR BUSINESS BACK TO ACCEPTABLE LEVELS OF RETURNS FOR OUR SHAREHOLDERS MR YORK SAID STILL THE THIRDQUARTER REPORT OFFERED A RESPITE FROM EVEN WORSE RESULTS IN THE PAST YEAR IBM POSTED A NET LOSS OF 48 MILLION OR 12 CENTS A SHARE ON ESSENTIALLY FLAT REVENUE OF 1474 BILLION IN THE YEAREARLIER PERIOD IBM HAD A NET LOSS OF 28 BILLION OR 487 A SHARE BECAUSE OF PRETAX RESTRUCTURING CHARGES OF 44 BILLION ON SALES OF 147 BILLION IBM HAD A PRETAX OPERATING LOSS OF 82 MILLION IN THE MOST RECENT PERIOD WHILE A YEAR EARLIER IT HAD PRETAX OPERATING EARNINGS OF 146 MILLION EXCLUDING ONETIME CHARGES IBM'S PERSONALCOMPUTER BUSINESS PROVIDED ONE OF THE FEW BRIGHT SPOTS AS REVENUE FOR IBM PERSONAL COMPUTER CO ROSE 50 IN THE QUARTER COMPARED WITH A YEAR EARLIER REVENUE IN IBM'S SERVICES BUSINESS ROSE 27 OVER THE YEAREARLIER QUARTER THE COMPANY SAID WALL STREET RESPONDED WELL TO THE RESULTS AS IBM STOCK ROSE 1375 OR 31 TO CLOSE AT 4625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY IBM'S PROMISING WORKSTATION LINE HAD A DECLINE IN SALES WHICH MR YORK ATTRIBUTED TO NEWPRODUCT TRANSITIONS SOME ANALYSTS WONDERED WHETHER IBM'S DROP MIGHT HAVE BEEN DUE MORE TO GAINS BY DIGITAL EQUIPMENT CORP AND SUN MICROSYSTEMS INC WHICH SHOWED INCREASES IN WORKSTATION SALES IN THE THIRD QUARTER IN ADDITION IBM'S SOFTWARE BUSINESS WHICH IS HEAVILY LINKED TO THE AILING MAINFRAME BUSINESS HAD A REVENUE DECLINE OF 33 THE RENTALS AND FINANCING BUSINESS ALSO DROPPED 142 IN REVENUE IN THE QUARTER THE MAIN CONCERN FOR IBM'S FUTURE HOWEVER LIES WITH THE CONTINUING EROSION IN OVERALL PROFIT MARGINS WHICH SLIPPED SLIGHTLY TO 38 FROM 385 IN THE THIRD QUARTER MR YORK ANTICIPATES A FURTHER DECLINE TO 37 OR SLIGHTLY LOWER IN THE CURRENT QUARTER AS IBM'S MIX OF REVENUES CHANGES MAINFRAME PRICES WILL CONTINUE TO DECLINE AND SALES OF PERSONAL COMPUTERS WHICH HAVE MUCH LOWER PROFIT MARGINS ARE EXPECTED TO DOUBLE IN THE SEASONALLY FAVORABLE FOURTH QUARTER FROM THIRDPERIOD LEVELS MR YORK SAID HE DECLINED TO SPECIFY HOW MUCH MAINFRAME SALES WHICH CONSTITUTE ABOUT ONETHIRD OF IBM'S REVENUE FELL IN THE THIRD QUARTER OR WILL CONTINUE TO DECLINE ALTHOUGH THE SLIDE HAS BEEN WITHIN IBM PROJECTIONS MR YORK TOLD ANALYSTS HE CAN'T FORECAST WHEN PROFIT MARGINS OVERALL WILL IMPROVE BUT STRESSED THAT HE IS ACCELERATING HIS COSTCUTTING PROGRAM AND EXPECTS TO ACHIEVE A 10 COST REDUCTION BY THE END OF 1993 MR YORK ALSO SAID HE IS ON TRACK TO MAKE GOOD ON HIS PROMISE OF TAKING A TOTAL OF 7 BILLION OUT OF IBM'S OPERATING EXPENSES BY THE END OF 1996 MUCH OF THE FUTURE CUTS MUST COME IN STAFFING IN EUROPE THE NEXT BATTLEGROUND IN THE VIEW OF SOME IBM OFFICIALS EUROPE WILL BEAR THE BRUNT OF THE 42000 ADDITIONAL JOB CUTS TARGETED TO BE COMPLETED BY THE END OF NEXT YEAR THE EUROPEAN WORK FORCE SO FAR HAS SUFFERED SIGNIFICANTLY LESS THAN THE US SIDE SINCE 1985 WHEN IBM'S PAYROLL PEAKED AT 405500 PEOPLE IT HAS SHED 138000 EMPLOYEES BUT ONLY 20000 OF THE JOB CUTS OCCURRED IN EUROPE WHERE IT IS MORE EXPENSIVE AND LEGALLY DIFFICULT TO LAY OFF WORKERS IBM'S WORK FORCE NOW IS DOWN TO 267000 WORLDWIDE AND IT PLANS TO TRIM THAT TO 255000 BY THE END OF THIS YEAR AND TO 225000 BY YEAREND 1994 MR YORK ALSO RESPONDED TO ANALYSTS WHO ASKED IF IBM MIGHT BE HAVING A CASHFLOW PROBLEM THE COMPANY IS SEEKING A 10 BILLION CREDIT PACKAGE FROM A GROUP OF BANKS BUT THE CHIEF FINANCIAL OFFICER DESCRIBED THE FACILITY AS AN INSURANCE POLICY AND SAID THE BANKS WERE ENTHUSIASTIC ABOUT ESTABLISHING THE CREDIT LINE ANALYSTS RESPONDED CAUTIOUSLY TO IBM'S RESULTS SAYING THEY WEREN'T SURE THE TURNAROUND WAS IN SIGHT YET BUT WERE ENCOURAGED BY THE FLAT REVENUE AND THE EASING EROSION IN PROFIT MARGINS THINGS AREN'T GETTING WORSE BUT WHETHER THEY GET BETTER WE DON'T KNOW YET SAID DAVID WU AN ANALYST AT SG WARBURG & CO DANIEL MANDRESH OF MERRILL LYNCH CAPITAL CORP ADDED HOPEFULLY IT'S NOT A BAD QUARTER FOR THE NINE MONTHS IBM POSTED A NET LOSS OF 837 BILLION OR 1470 A SHARE COMPARED WITH PROFIT OF 498 MILLION OR 87 CENTS A SHARE A YEAR EARLIER REVENUE EASED SLIGHTLY TO 4332 BILLION FROM 4496 BILLION 9310270101 931027 FORMER OFFICIAL IN HUD CASE IS CONVICTED BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DEBORAH GORE DEAN WHO PRESIDED OVER A BRAT PACK THAT DOLED OUT FUNDS FROM THE FEDERAL HOUSING DEPARTMENT TO POLITICAL ALLIES DURING THE REAGAN ERA WAS CONVICTED ON ALL 12 COUNTS AGAINST HER INCLUDING CONSPIRACY PERJURY AND ACCEPTING A BRIBE MS DEAN 38 YEARS OLD WAS INDICTED LAST YEAR FOLLOWING THE 1990 APPOINTMENT OF AN INDEPENDENT COUNSEL ARLIN ADAMS WHO INVESTIGATED ALLEGATIONS OF SYSTEMIC FRAUD AND INFLUENCEPEDDLING AT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WITH HER LONG BLONDE HAIR NOW SOFTENED TO A MODEST BROWN AND HER POLITICALLY PROMINENT FAMILY MS DEAN BECAME THE BESTKNOWN OF A GROUP OF POWERFUL YOUNG HUD EMPLOYEES AND THE 11TH TO BE CONVICTED ON FEDERAL CHARGES SHE FACES A MAXIMUM SENTENCE OF 57 YEARS IN PRISON AND 3 MILLION IN FINES THE SENTENCING IS SET FOR JANUARY SINCE THE ALLEGATIONS FIRST ERUPTED IN CONGRESSIONAL HEARINGS IN 1989 MS DEAN NEVER DISPUTED THAT CERTAIN HUD CONTRACTS WERE STEERED TOWARD CONSULTANTS WITH TIES TO THE REPUBLICAN PARTY BUT MS DEAN SAID THAT FORMER HUD SECRETARY SAMUEL PIERCE MADE THE FUNDING DECISIONS AND THAT ALL WERE LEGAL I DID NOT ACT INDEPENDENTLY SHE ASSERTED DURING HER FIVE DAYS ON THE WITNESS STAND BUT I ATTEMPTED TO USE MY JUDGMENT AS BEST I COULD AND REPORT TO HIM THE SIXWEEK TRIAL CAST A HARSH SPOTLIGHT ON HOW WASHINGTON CONSULTANTS USUALLY BIG POLITICAL CONTRIBUTORS OR FORMER AGENCY OFFICIALS ENRICHED THEMSELVES BY STEERING CONTRACTS TO THEIR CLIENTS IN THE HUD CASE THEIR NUMBERS INCLUDED JOHN MITCHELL PRESIDENT NIXON'S ATTORNEY GENERAL WHO LIVED WITH MS DEAN'S MOTHER AND WHOM MS DEAN OFTEN CALLED DAD MR MITCHELL WHO DIED IN 1988 RECEIVED 230000 FROM CLIENTS FOR PUTTING TOGETHER APARTMENT DEALS THAT WERE FINANCED WITH HUD MONEY IN 1987 HE PAID 3000 FOR A BIRTHDAY PARTY FOR MS DEAN THAT WAS ATTENDED BY MANY OTHER CONSULTANTS WHO WORKED WITH HUD THE LAVISH PARTY PROMPTED ALLEGATIONS OF CONFLICT OF INTEREST THAT IN TURN HELPED TO PROMPT PART OF THE CONGRESSIONAL INVESTIGATION THE BRIBERY CHARGE STEMMED FROM 4000 PAID TO MS DEAN BY LOUIS KITCHIN AN ATLANTA POLITICAL CONSULTANT AT ABOUT THE TIME HE RECEIVED A HUD GRANT MS DEAN ASSERTED DURING THE TRIAL THAT THE MONEY WAS A PAYMENT FOR DECORATING AN APARTMENT FOR MR KITCHIN THE CONVICTION ENDED THE LONG SAGA OF MS DEAN'S FALL FROM WEALTH AND POWER THE DAUGHTER OF A FORMER HEAD OF THE ATOMIC ENERGY COMMISSION AND A SECOND COUSIN OF VICE PRESIDENT AL GORE MS DEAN SPENT PART OF HER CHILDHOOD AT HER FAMILY'S HUGE MARWOOD MANSION IN THE MARYLAND SUBURBS WAITING FOR HER ATTORNEY STEPHEN WEHNER TO BEGIN HIS CLOSING ARGUMENTS LAST WEEK MS DEAN SAID IN AN INTERVIEW THAT SHE HAS PLOWED THROUGH MUCH OF THE FAMILY FORTUNE TO PAY FOR HER DEFENSE I AM GOING TO BE A CASUALTY OF THE INVESTIGATION SHE SAID I ALREADY LOST THOUGH MR PIERCE HASN'T BEEN INDICTED HE HAS SPENT MUCH OF THE PAST FOUR YEARS PREPARING HIS DEFENSE SHOULD IT BE NECESSARY SAID HIS ATTORNEY PAUL PERITO 9310270100 931027 TECHNOLOGY CRAY COMPUTER PROBE RESULTS IN TWO CHARGED BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION HAS CHARGED A FORMER CRAY COMPUTER CORP ADMINISTRATIVE ASSISTANT AND HER HUSBAND WITH INSIDER TRADING THE SEC'S ONGOING INVESTIGATION OF TRADING IN THE STOCK OF CRAY COMPUTER ATTRACTED WIDESPREAD ATTENTION EARLIER THIS YEAR BECAUSE IT ALSO INVOLVES CRAY RESEARCH INC AND ITS FORMER CHAIRMAN JOHN ROLLWAGEN MR ROLLWAGEN WITHDREW AS NOMINEE FOR THE NO 2 JOB IN THE COMMERCE DEPARTMENT AFTER SOURCES NAMED HIM AS A TARGET OF THE PROBE HIS ATTORNEY HAS SAID MR ROLLWAGEN DID NOTHING WRONG CRAY RESEARCH OF EAGAN MINN SPUN OFF CRAY COMPUTER AS AN INDEPENDENT COMPANY BUT RETAINED A 10 STAKE THAT IT STARTED SELLING OFF IN 1991 CRAY RESEARCH SHAREHOLDERS INCLUDING EMPLOYEES SUCH AS MR ROLLWAGEN HELD THE REMAINING 90 OF CRAY COMPUTER THE INSIDERTRADING INVESTIGATION INVOLVES SALES IN DECEMBER 1991 WHEN LAWRENCE LIVERMORE LABORATORY CANCELED AN ORDER FOR A 30 MILLION CRAY COMPUTER SUPERCOMPUTER TO GET ONE FROM CRAY RESEARCH INSTEAD THE SEC CHARGED CARLA D RUEFF A FORMER ADMINISTRATIVE ASSISTANT TO THE SALES AND MARKETING VICE PRESIDENT IN CRAY COMPUTER'S PLEASANTON CALIF OFFICE THE AGENCY SAID THAT ON DEC 23 1991 AFTER MRS RUEFF WAS TOLD CRAY COMPUTER WOULDN'T GET THE BIG SALE SHE TOLD HER HUSBAND WILLIAM RUEFF THE SEC SAID HER SUPERVISOR TOLD HIS EMPLOYEES THE INFORMATION WAS CONFIDENTIAL AND THEY SHOULDN'T INFORM ANYONE THE SEC SAID MR RUEFF SOLD 4000 SHARES AT 11125 EACH BEFORE THE MARKET CLOSED THAT DAY CRAY COMPUTER ANNOUNCED THE LOST SALE THAT EVENING THE NEXT DAY ITS STOCK CLOSED AT 575 THE SEC SAID IT WANTS THE RUEFFS TO PAY 20672 IN AVOIDED LOSSES PLUS CIVIL PENALTIES EQUAL TO THREE TIMES THAT AMOUNT THE RUEFFS DIDN'T RETURN CALLS THE SEC'S INVESTIGATION ALSO PRODUCED AN INSIDER TRADING ACTION AGAINST THE GENERAL COUNSEL OF THE LIVERMORE LABORATORY THE ATTORNEY WILLIAM DEGARMO PAID ABOUT 54000 TO SETTLE ALLEGATIONS OF SHORTSELLING CRAY COMPUTER STOCK ON THE DAY THE COMPANY DISCLOSED ITS LOSS OF THE LIVERMORE CONTRACT MR DEGARMO DIDN'T ADMIT ANY WRONGDOING IN HIS SETTLEMENT 9310270099 931027 CFTC DUCKS THE ISSUE OF HOW TO REGULATE DERIVATIVES BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL THE COMMODITY FUTURES TRADING COMMISSION IN ITS NEWLY RELEASED STUDY OF PRIVATELY TRADED DERIVATIVES DUCKED THE THORNY ISSUE OF HOW TO REGULATE THIS BOOMING AND CONTROVERSIAL MARKET THE REPORT ONE OF SEVERAL DERIVATIVES STUDIES PRESENTED BY REGULATORS AND INDUSTRY PARTICIPANTS THIS YEAR ECHOES THE CONCLUSIONS OF THE EARLIER RELEASES THE REPORT'S SUMMARY JUDGMENT WAS THAT NO FUNDAMENTAL CHANGES IN REGULATORY STRUCTURE APPEAR TO BE NEEDED AT THIS TIME FOR DERIVATIVES INSTEAD IT RECOMMENDED GREATER COORDINATION AMONG FEDERAL FINANCIAL REGULATORS TO HELP ASSURE THAT FEDERAL OVERSIGHT REMAINS ADEQUATE DERIVATIVES ARE FINANCIAL ARRANGEMENTS WHOSE VALUES DERIVE FROM SOME UNDERLYING ASSET SUCH AS STOCKS BONDS CURRENCIES OR COMMODITIES SOCALLED OVERTHECOUNTER DERIVATIVES ARE TRADED PRIVATELY AMONG BANKS AND THEIR LARGE CUSTOMERS MAINLY CORPORATIONS AND BIG INSTITUTIONS AND ESSENTIALLY ARE EXEMPT FROM REGULATION THE CFTC MEANWHILE REGULATES CERTAIN EXCHANGELISTED DERIVATIVES CONTRACTS INCLUDING FINANCIAL FUTURES AND COMMODITY FUTURES IN STRUGGLING TO COME TO GRIPS WITH THE MULTITRILLIONDOLLAR MARKET IN PRIVATE DERIVATIVES CONTRACTS US REGULATORS HAVE BEEN FRUSTRATED BY THE FACT THAT THESE INSTRUMENTS FALL UNDER NOBODY'S CLEAR JURISDICTION BECAUSE THEY COMBINE TRADITIONAL ASSETS IN COMPLEX NEW WAYS THEY SPAN TERRITORY POLICED NOT ONLY BY THE CFTC BUT ALSO BY FEDERAL BANKING SECURITIES AND INSURANCE REGULATORS AND THE HIGHLY FLEXIBLE GLOBAL NATURE OF THE DERIVATIVES MARKETS MEANS THAT ANY CRACKDOWN BY US REGULATORS WOULD RISK MERELY DRIVING THAT ACTIVITY BEYOND THEIR REACH INTO OFFSHORE MARKETS SAID JOHN M DAMGARD PRESIDENT OF THE FUTURES INDUSTRY ASSOCIATION A WASHINGTON TRADE GROUP MEANWHILE THE HOUSE BANKING COMMITTEE UNDER CHAIRMAN HENRY GONZALES D TEXAS WILL OPEN ITS ROUND OF INQUIRY INTO THE DERIVATIVES MARKET TOMORROW AMONG THOSE SCHEDULED TO TESTIFY ARE THE CFTC'S ACTING CHAIRMAN SHEILA BAIR AS WELL AS SECURITIES AND EXCHANGE COMMISSIONER J CARTER BEESE JR THE CFTC STUDY SUGGESTED THAT PRESIDENT CLINTON APPOINT A MULTIAGENCY PANEL TO EXAMINE AMONG OTHER THINGS HOW EXISTING SECURITIES AND BANKING LAWS MIGHT BE USED TO FORCE GREATER DISCLOSURE BY DERIVATIVES DEALERS AND OTHER MARKET PARTICIPANTS THAT RECOMMENDATION FOLLOWS A SIMILAR REQUEST FOR A MULTIAGENCY PANEL ISSUED LAST MONTH BY THE COMPTROLLER OF THE CURRENCY EUGENE LUDWIG THE CFTC SAID ITS STUDY WAS HAMPERED BY A LACK OF READILY AVAILABLE AND EASILY COMPARABLE INFORMATION ABOUT THE DERIVATIVES MARKET IT'S VERY DIFFICULT TO OBTAIN SOME VERY BASIC INFORMATION ABOUT OTC DERIVATIVES SAID SUSAN ERVIN CHIEF COUNSEL IN THE AGENCY'S DIVISION OF TRADING AND MARKETS INFORMATION ACCESS TOPPED THE CFTC'S LIST OF SUGGESTED AGENDA ITEMS FOR THE INTERAGENCY COUNCIL THE COMMISSION ALSO CALLED FOR MORE SCRUTINY OF CONCENTRATIONS OF POSITIONS AMONG THE BIG MARKET PLAYERS THE LINKAGES BETWEEN DERIVATIVES AND EXCHANGETRADED PRODUCTS AND PRICING DISCLOSURE AND RISK VALUATIONS BY MARKET PARTICIPANTS BUT THE AGENCY'S PASSIVITY MAY BE PARTLY ATTRIBUTABLE TO ITS POLITICAL WEAKNESS THE COMMISSION COMPRISES TWO MEMBERS CURRENTLY BOTH REPUBLICANS AND HASN'T HAD A FULL COMPLEMENT OF FIVE COMMISSIONERS SINCE EARLY JANUARY THE WHITE HOUSE HASN'T GIVEN ANY INDICATION OF WHEN APPOINTMENTS MIGHT BE FORTHCOMING MS BAIR CONCEDED THAT THE CFTC'S CONCLUSIONS AND RECOMMENDATIONS COULD CHANGE UNDER A DEMOCRATIC CHAIRMAN BUT SHE SAID SHE COULDN'T BE MORE SPECIFIC WITHOUT KNOWING WHO THE NEW CHAIRMAN IS GOING TO BE MEANWHILE THE SEC'S MR BEESE IN COMMENTS PREPARED FOR A DERIVATIVES CONFERENCE TODAY DISPUTED CRITICS WHO HAVE CALLED DERIVATIVES THE NEXT S&L CRISIS WHILE THERE CERTAINLY ARE LESSONS TO BE LEARNED FROM PRIOR EXPERIENCES THERE ARE COPS ON THE BEAT' WITH REGARD TO DERIVATIVES MR BEESE SAID THE SEC CFTC FEDERAL RESERVE COMPTROLLER OF THE CURRENCY AND FEDERAL DEPOSIT INSURANCE CORP ALL HAVE RIGOROUS REGULATORY REGIMES OUR CHALLENGE GOING FORWARD IS TO COORDINATE OUR EFFORTS SO THAT WE HAVE AN ADEQUATE UNDERSTANDING OF THE AGGREGATE SIZE OF THE MARKET AND PROPERLY IDENTIFY POTENTIAL SYSTEMIC STRESS POINTS HE ADDED THE SWAPS AND DERIVATIVES INDUSTRY WHICH HAS BEEN TRYING TO AVOID ADDITIONAL REGULATION VIEWS THE STUDY AS A VALIDATION OF THE DERIVATIVES BUSINESS AND ITS PRACTITIONERS IT'S GOOD THAT THERE IS ANOTHER STUDY TO UNDERLINE THE IMPORTANCE OF DERIVATIVES IN MANAGING RISK SAID JOSEPH BAUMAN HEAD OF BUSINESS DEVELOPMENT AT THE DERIVATIVES GROUP OF CITICORP'S CITIBANK AND CHAIRMAN OF THE INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION THE VARIOUS STUDIES FORCE THE AGENCIES TO TAKE THE HARD LOOK WE WANT THEM TO TAKE HE SAID A BETTER UNDERSTANDING WILL BENEFIT THIS BUSINESS IT STILL SUFFERS FROM A DEGREE OF LACK OF UNDERSTANDING ON THE PART OF DECISION MAKERS HOWEVER THE CALL FOR AN INTERAGENCY COUNCIL AMONG REGULATORS WAS RECEIVED COOLLY BY THE ASSOCIATION WHICH BELIEVES A LESS FORMAL FORM OF COMMUNICATIONS WOULD BE BETTER SUITED TO HANDLE THE TASKS OTHERS EMPHASIZED THE NEED FOR GREATER INTERNATIONAL COORDINATION AMONG REGULATORS I THINK INTERAGENCY COORDINATION IS THE ANSWER SAYS MR DAMGARD OF THE FUTURES INDUSTRY ASSOCIATION BUT HE ADDED THAT THE SUGGESTIONS FALL SHORT IN FAILING TO INCLUDE FOREIGNMARKET REPRESENTATIVES MY MEMBERS ARE DOING BUSINESS ALL OVER THE WORLD HE SAID REGULATORS NEED TO BE VERY VERY CONSCIOUS OF WHAT THEIR COUNTERPARTS AROUND THE WORLD ARE DOING ULTIMATELY THE DERIVATIVES INDUSTRY WILL NO DOUBT GET A REGULATORY STRUCTURE DIFFERENT FROM TODAY SAID THOMAS RUSSO MANAGING DIRECTOR AT LEHMAN BROTHERS BUT HE HOPED THAT IT'S NOT SO INTRUSIVE AS TO STYMIE GROWTH THE CFTC SAID THAT IT WILL FOR ITS PART CONTINUE TO EXAMINE PROPOSALS FROM THE CHICAGO MERCANTILE EXCHANGE AND THE CHICAGO BOARD OF TRADE TO ACT AS CLEARING FACILITIES FOR SWAPS CONTRACTS STEVEN LIPIN IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9310270098 931027 CLINTON OFFERS TWO LEGISLATIVE STEPS IN LINE WITH REINVENTING' GOVERNMENT BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON ANNOUNCED TWO LEGISLATIVE INITIATIVES AIMED AT IMPROVING THE PERFORMANCE AND REDUCING THE COST OF GOVERNMENT AND HE SAID THAT SOME OF THE SAVINGS ACHIEVED WOULD PAY FOR HIS CRIME BILL THE TWO INITIATIVES WHICH FOLLOW UP ON VICE PRESIDENT AL GORE'S REPORT LAST MONTH ON REINVENTING GOVERNMENT WOULD SIMPLIFY FEDERAL PROCUREMENT PROCEDURES CONSOLIDATE FEDERAL OFFICES INCREASE FEDERAL DEBT COLLECTION AND STREAMLINE CERTAIN GOVERNMENT PROCEDURES TAKEN TOGETHER THE CHANGES WOULD PRODUCE A BUDGET SAVINGS OF 31 BILLION OVER FIVE YEARS THE CLINTON ADMINISTRATION ESTIMATES BUT WHETHER ALL THESE SAVINGS ACTUALLY WOULD BE REALIZED IS A MATTER OF SOME DOUBT EVEN IF THE FULL PACKAGE WINS CONGRESSIONAL APPROVAL AT A NEWS BRIEFING FOLLOWING THE PRESIDENT'S ANNOUNCEMENT BUDGET DIRECTOR LEON PANETTA PLAYED DOWN THE BUDGETARY IMPLICATIONS SAYING THAT WHILE THE LEGISLATION IS AN EFFORT TO TRY TO MAKE GOVERNMENT WORK BETTER AND TO TRY TO ACHIEVE SAVINGS IN THAT PROCESS THE MAIN FOCUS IS REALLY ON GOVERNMENT REFORMS HE ALSO SAID THAT WHILE THE ADMINISTRATION ESTIMATES A SAVINGS OF 225 BILLION OVER FIVE YEARS FROM THE PROPOSALS RELATED TO PROCUREMENT THE CONGRESSIONAL BUDGET OFFICE'S ESTIMATE WHICH HASN'T YET BEEN COMPLETED COULD BE AS LOW AS 15 BILLION MR PANETTA SAID WHATEVER SAVINGS ARE ACHIEVED BY THE PROCUREMENT PROPOSALS WOULD BE USED TO PAY FOR ANTICRIME INITIATIVES FAVORED BY THE ADMINISTRATION WHICH INCLUDE PUTTING MORE POLICE OFFICERS ON THE STREET AND ESTABLISHING BOOT CAMPS TO INCARCERATE YOUNG CRIMINALS SAVINGS FROM THE OTHER INITIATIVES ESTIMATED AT 85 BILLION WOULD GO TOWARD DEFICIT REDUCTION MR PANETTA SAID THE PROPOSED LEGISLATION WOULD ALLOW AGENCIES TO EMPLOY SIMPLE PROCUREMENT PROCEDURES FOR PURCHASES UP TO 100000 CURRENTLY THE THRESHOLD IS 25000 PURCHASES BELOW THE NEW LEVEL WOULD BE EXEMPT FROM SOME FEDERAL AUDITING REQUIREMENTS WHICH INCLUDE STIPULATIONS THAT MATERIAL BE TRANSPORTED BY US FLAG VESSELS AND SOME CLEANAIR AND OTHER ENVIRONMENTAL RULES THE ADMINISTRATION ALSO PLANS TO REWRITE AND SIMPLIFY ITS 1600PAGE MANUAL FOR FEDERAL ACQUISITION AND TO INITIATE SEVEN PILOT PROJECTS AT THE DEFENSE DEPARTMENT TO TEST SIMPLIFIED PURCHASE OF COMMERCIAL JET AIRCRAFT AND AIRCRAFT ENGINES CLOTHING AND MEDICAL SUPPLIES AND OTHER ITEMS SOME OF THE PROCUREMENT PROPOSALS ARE LIKELY TO PROVE CONTROVERSIAL FOR EXAMPLE THE BILL WOULD REPEAL SOME PROHIBITIONS ON THE REVOLVING DOOR BETWEEN GOVERNMENT AND BUSINESS AND ON GOVERNMENT BUSINESS WITH PEOPLE CONVICTED OF DEFENSE CONTRACTING FELONIES BY ELIMINATING MANY OF THESE REGULATIONS THE PENTAGON HOPES TO REDUCE DEFENSEINDUSTRY OVERHEAD COSTS WHICH SOME PEOPLE HAVE ESTIMATED TO BE TRIPLE THAT OF OTHER INDUSTRIAL SECTORS THE SECOND ADMINISTRATION BILL WOULD ENACT OTHER PROPOSALS INCLUDED IN LAST MONTH'S REPORT BY VICE PRESIDENT GORE AMONG THEM ELIMINATING AN UNSPECIFIED NUMBER OF AGRICULTURE DEPARTMENT FIELD OFFICES ELIMINATING THE DEFENSE DEPARTMENT'S UNIFORMED SERVICES UNIVERSITY OF HEALTH SCIENCES WHICH TRAINS MEDICAL PERSONNEL FOR THE MILITARY REDUCING THE NUMBER OF FIELD OFFICES FOR THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT REDUCING THE NUMBER OF MARINE GUARDS AT US EMBASSIES CUTTING OFF SUBSIDIES FOR AIR SERVICE TO SOCALLED REMOTE LOCATIONS THAT ARE WITHIN 70 MILES OF HUB AIRPORTS SELLING THE GOVERNMENTOWNED ALASKA POWER ADMINISTRATION AND REQUIRING STUDENTS AT THE US MERCHANT MARINE ACADEMY TO PAY TUITION TO COVER HALF THE COST OF THEIR EDUCATION CURRENTLY THEY PAY NO TUITION A SEPARATE PACKAGE OF ASYET UNSPECIFIED CUTS TO BE SENT TO CONGRESS AFTER THE CURRENT ROUND OF APPROPRIATIONS IS COMPLETED WOULD SAVE AN ADDITIONAL 1 TO 2 BILLION THIS YEAR MR PANETTA SAID A SPOKESMAN FOR THE WHITE HOUSE BUDGET OFFICE SAID WE DON'T KNOW YET WHAT WILL BE INCLUDED IN THE PACKAGE ADDING THAT THE ADMINISTRATION HOPES TO SEND THE RECISIONS TO CAPITOL HILL LATER THIS WEEK 9310270096 931027 RETAILERS GUESS WHICH GIFTS WILL BE UNDER YOUR TREE BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL LONG BEFORE MOST CONSUMERS TURN THEIR THOUGHTS TO SANTA RETAILERS PLACE SOME HEAVY BETS ON WHAT CHRISTMAS SHOPPERS WILL BUY ON THIS YEAR'S HOTGIFTS ROSTER ARE BRIGHTCOLORED RUBBER BOOTS TO WEAR GARDENING A PUNCHING BAG WITH GLOVES FOR WOMEN A 127PIECE TOOL KIT FOR MEN A PLUSH BARNEY THE DINOSAUR FOR KIDS AND A SNORECONTROL SYSTEM FOR WHOMEVER THE LIST ALSO INCLUDES CLASSIC PRESENTS LIKE FLANNEL SHIRTS AND GOLD EARRINGS RETAILERS' GUESSES THIS YEAR APPEAR TO BE ABOUT AS BLIND AS EVER BUT THE STAKES ARE PROBABLY HIGHER THAN USUAL BECAUSE SHOPPERS MAY BE BUYING LESS THE CONFERENCE BOARD SAID YESTERDAY THAT ITS CONSUMER CONFIDENCE INDEX FOR OCTOBER FELL TO 594 FROM SEPTEMBER'S REVISED 638 AND THE NUMBER OF CONSUMERS PLANNING TO SPEND LESS THIS CHRISTMAS THAN LAST YEAR HAS JUMPED TO 54 REPORTS LEO J SHAPIRO & ASSOCIATES A CHICAGO MARKETRESEARCH FIRM THAT'S 10 PERCENTAGE POINTS MORE THAN LAST YEAR AND REPRESENTS THE POOREST OUTLOOK IN 12 YEARS OF SURVEYS IF RETAILERS BET WRONG ABOUT WHAT WILL BE HOT THEY'LL WIND UP LIKE SPORTMART INC DID LAST YEAR WITH WAREHOUSES FULL OF SLAP TOO A CHILD'S BASKETBALL HOOP THAT FLOPPED BUT FAILING TO SPOT A WINNING ITEM MEANS MISSED SALES AND DISAPPOINTED CUSTOMERS FOR RETAILERS WHO TYPICALLY REAP A SIGNIFICANT PART OF BOTH SALES AND PROFITS IN NOVEMBER AND DECEMBER MISTAKES CAN BE DEVASTATING AMONG THE BIG BOMBS IN RECENT YEARS DICK TRACY LICENSED APPAREL TIES FOR WOMEN AND ANNIE OAKLEYSTYLE WESTERN WEAR RETAILERS REALLY WON'T KNOW UNTIL THANKSGIVING WHAT THE SEASON'S HOT GIFTS ARE SAYS ALAN MILLSTEIN A NEW YORK CONSULTANT BUT BY THE TIME CONSUMERS VOTE WITH THEIR POCKETBOOK IT'S REALLY TOO LATE FOR RETAILERS TO STOCK UP SINCE ABOUT 80 OF ALL CHRISTMAS MERCHANDISE IS ALREADY ORDERED RETAILERS HAVE LITTLE CHOICE BUT TO PLUG THE GIFTS ABOUT TO BE PILED HIGH IN THEIR WAREHOUSES EVERYBODY HERE LOVES EVERYTHING UNTIL WE SEE WHAT ACTUALLY SELLS SAYS PAT CONNOLLY SENIOR VICE PRESIDENT OF WILLIAMSSONOMA INC THE SAN FRANCISCO HOMEACCESSORIES RETAILER IS BETTING ON 59 WELLINGTON GARDEN BOOTS IMPORTED FROM SCOTLAND WHICH COME IN BRIGHT COLORS 1650 BOUQUETS OF CHILI PEPPERS GARLIC OR BAY LEAVES AND ROSEMARY TO HANG FROM THE KITCHEN CEILING AND CUPIDSHAPED SOAPS EIGHT FOR 9 WHY DOES THE COMPANY THINK THESE ITEMS WILL FLY WE KNOW IT WE JUST KNOW IT MR CONNOLLY SAYS THE COMPANY'S GUARANTEE THAT 95 OF ITS CATALOG MERCHANDISE WILL BE AVAILABLE ADDS EXTRA PRESSURE TO GUESS CORRECTLY WE TEND TO OVER ORDER HE SAYS JAMES GUNDELL SENIOR VICE PRESIDENT AT BLOOMINGDALE'S SAYS STORE BUYERS DETERMINE HOW MANY GIFT ITEMS TO ORDER BY CHECKING THE PERFORMANCE OF SIMILAR PRODUCTS IN PREVIOUS YEARS AND BY GAUGING THEIR COMPANY'S FINANCIAL OUTLOOK GUT FEELING HELPS HE SAYS AS DO TIPS FROM MANUFACTURERS ABOUT WHICH ITEMS RETAILERS ARE BUYING LAST CHRISTMAS THE DEPARTMENTSTORE CHAIN UNDERESTIMATED DEMAND FOR ITS CASHMERE SWEATERS AN IMPORT IT COULDN'T QUICKLY REPLENISH THIS SEASON BLOOMINGDALE'S HAS STOCKED LOTS OF CASHMERE IN A VARIETY OF STYLES AND COLORS ITEMS RANGE FROM 2999 MEN'S SCARVES TO 4000 OVERCOATS SPORTMART THE NILES ILL SPORTINGGOODS RETAILER EXPECTED THE SLAP TOO GAME TO BE A NATURAL FOR BASKETBALLCRAZED KIDS MAYBE BECAUSE THE HOOP WASN'T STURDY ENOUGH SPORTMART HAD TO MARK IT DOWN AT LEAST TWICE IN 60 DAYS SAYS DAN HEAD GENERAL MERCHANDISE MANAGER THIS YEAR SPORTMART IS PINNING ITS HOPES ON AERO BOXER A 9996 KIT GEARED FOR WOMEN THAT INCLUDES A BAG FOR PUNCHING OR KICKING GLOVES AND A WORKOUT VIDEO INITIAL SALES ARE STRONG BUT IT'S EARLY YET MR HEAD SAYS I WON'T KNOW FOR SURE FOR ANOTHER SIX WEEKS AND THEN I'M UP TO MY EYEBALLS IN AERO BOXERS YOUNKERS INC IS BETTING THAT SHOPPERS WILL WANT HANDMADE QUILTS COSTING FROM 69 TO SEVERAL HUNDRED DOLLARS INITIAL SALES ARE STRONG SAYS BOB FERGUSON SENIOR VICE PRESIDENT OF MARKETING FOR THE MIDWEST DEPARTMENTSTORE OPERATOR BUT THERE ARE NO GUARANTEES MR FERGUSON RECALLS STOCKING UP ON BLANKETS ONE SEASON ONLY TO HAVE THEM SIT ON THE SHELVES CUSTOMERS TOLD US THEY ALREADY HAD ENOUGH IN THEIR CLOSETS HE SAYS IN THE ABSENCE OF HARD INFORMATION RETAILERS SOMETIMES COUNT ON ITEMS THAT SOLD WELL IN THE SPRING AND SUMMER NECKTIES DECORATED WITH CARTOON CHARACTERS SUCH AS BUGS BUNNY AND SNOOPY ARE BLOWING OUT OF THE STORES SAYS MR MILLSTEIN THE CONSULTANT BLOOMINGDALE'S FOR ONE IS BETTING HEAVILY ON SUCH CONVERSATIONAL NECKWARE OTHERS PIN SOME OF THEIR HOPES ON ITEMS THAT PERFORMED WELL IN CHRISTMASES PAST EDDIE BAUER A UNIT OF SPIEGEL INC THINKS SHOPPERS WILL ONCE AGAIN GO FOR ITS 34 FLANNEL SHIRTS THIS YEAR IN NEW PLAID PATTERNS JC PENNEY CO IS BANKING ON A THROW RUG EMBLAZONED WITH A NORMAN ROCKWELL COVER FROM THE SATURDAY EVENING POST MOSTLY BECAUSE A SIMILAR SANTA CLAUS RUG SOLD WELL LAST CHRISTMAS PENNEY AND OTHER TOY RETAILERS LIKE DAYTON HUDSON CORP'S TARGET STORES ARE ALSO STOCKING UP AGAIN ON A PLUSH BARNEY THE DINOSAUR COMPANIES KNOWN FOR CLASSIC GIFTS ARE TRYING NEW ITEMS TOO TIFFANY & CO IS PROMOTING A NEW LINE CALLED THE SCROLL COLLECTION THAT FEATURES 1400 GOLDBRUSHED DROP EARRINGS IN A SWIRL PATTERN COACH LEATHERWARE A UNIT OF SARA LEE CORP IS HOPING SHOPPERS WILL GO FOR A 470 BRIEFCASE FOR MEN THAT IS MORE CASUALLY STYLED AND LIGHTER WEIGHT THAN ITS CLASSIC MODELS FOR THE CRAFTSMAN TRUE VALUE'S 3000 DEALERS ARE LAYING IN STOCKS OF A 127PIECE TOOL SET IN A METAL CABINET RON MAY HAND TOOLS MERCHANDISING MANAGER FOR COTTER & CO TRUE VALUE'S PARENT SAYS DEALERS ARE ORDERING THE 17995 SETS LIKE WILD IN ELECTRONICS RETAILERS SAY UPTODATE SOPHISTICATED ITEMS ARE ALMOST GUARANTEED SUCCESSES NEW TECHNOLOGY TENDS TO BE VERY IMPORTANT FOR PEOPLE INTO THIS KIND OF THING SAYS A SPOKESWOMAN FOR MONTGOMERY WARD'S ELECTRIC AVENUE THE CHICAGO RETAILER BETS SHOPPERS WILL UPGRADE TO TELEVISIONS WITH LARGER SCREENS HAMMACHER SCHLEMMER & CO A CHICAGO SPECIALTY RETAILER THAT CARRIES ELECTRONIC GADGETS IS FEATURING A 26995 VIRTUAL REALITY STUNTMASTER THAT FITS OVER THE EYES AND ALLOWS VIEWERS TO PLAY VIDEO GAMES INTERACTIVELY SPECIALTYGIFTS RETAILER SHARPER IMAGE IS SHOWCASING AN ODD GIFT A SNORE CONTROL SYSTEM IT IS A SMALL BOX THAT CAN BE ATTACHED TO THE ARM OF A SNORING BEDFELLOW AND VIBRATES AND SHAKES THE ARM TO WAKE THE PERSON A SPOKESMAN SAYS THE COMPANY HOPES WOMEN WILL BUY THE 5995 DEVICE FOR THEIR HUSBANDS SHARPER IMAGE IS ALSO BETTING ON A 39995 KODAK COMPACT DISK PLAYER THAT DISPLAYS UP TO 500 PERSONAL PHOTOGRAPHS ON THE SCREEN AND PLAYS SIX HOURS OF MUSIC THE TOUGHEST MARKET TO CALL AND TYPICALLY THE HARDEST TO BUY FOR IS TEENAGERS CLAIRE'S STORES INC'S ARCADIA A SPECIALTY PARTY AND GIFTS CHAIN SAYS IT EXPECTS CALENDARS AND PENDANTS CELEBRATING MTV CARTOON CHARACTERS BEAVIS AND BUTTHEAD TO BE HOT 9310270095 931027 SHORT INTEREST IN OTC STOCKS HITS NEW HIGH LIST SHOWS BIG POSITIONS IN TELECOMMUNICATIONS AND TECHNOLOGY ISSUES BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST IN THE NASDAQ MARKET SET A RECORD FOR THE NINTH CONSECUTIVE MONTH CLIMBING 7 TO 6611 MILLION SHARES FROM MIDSEPTEMBER'S 6181 MILLION SHORT INTEREST IN THE NASDAQ NATIONAL MARKET MADE UP OF THE LARGER OVERTHECOUNTER ISSUES INCREASED 67 TO 621 MILLION SHARES FROM 582 MILLION A MONTH EARLIER SHORT SELLING AMONG THE SMALLEST STOCKS WHICH MAKE UP ABOUT A THIRD OF THE NASDAQ MARKET JUMPED 11 TO 401 MILLION SHARES FROM 362 MILLION A MONTH EARLIER SHORT SALES ARE BETS THAT A STOCK'S PRICE WILL FALL AN INVESTOR SELLS BORROWED SHARES KNOWING THAT THEY EVENTUALLY MUST BE REPLACED FOR RETURN TO THE LENDER IF THE REPLACEMENT SHARES COST LESS THAN THOSE SOLD EARLIER THE SHORT SELLER MAKES A PROFIT SHORT INTEREST IS THE TOTAL OF SHARES SOLD SHORT AT ANY POINT IN TIME THIS MONTH'S FIGURES REPRESENT SALES REPORTED AS OF OCT 7 AND SETTLED AS OF OCT SOME OF OCTOBER'S INCREASED SHORT INTEREST IS THE RESULT OF INVESTORS' WANTING TO DEFER TAKING GAINS ON MANY OF THE STOCKS THAT HAVE HAD LARGE RUNUPS THIS YEAR ANALYSTS SAY THIS IS CALLED SELLING SHORT AGAINST THE BOX OR SHORTING STOCK AGAINST THE SHARES IN THE PORTFOLIO THAT THE MANAGER WANTS TO HOLD ONTO FOR THE LONG TERM THE NATIONAL MARKET'S SHORT INTEREST RATIO AS OF MIDOCTOBER ROSE TO 265 FROM 261 THE SHORT INTEREST RATIO FOR THE SMALLEST NASDAQ STOCKS CLIMBED TO 091 FROM 079 THE RATIO THE NUMBER OF TRADING DAYS AT THE MARKET'S AVERAGE VOLUME THAT WOULD BE REQUIRED TO CLOSE OUT THE TOTAL SHORT POSITION THROUGH SHARE PURCHASED IS A MEASURE OF TRADER SENTIMENT SOME ANALYSTS SUGGEST THE RATIO HAS WEAKENED AS AN INDICATOR BECAUSE OPTIONS AND OTHER DERIVATIVE STOCK PRODUCTS CAN BE USED TO HEDGE SHORT POSITIONS AMONG COMPANIES WITH THE LARGEST SHORT INTEREST POSITIONS ARE SEVERAL TELECOMMUNICATIONS AND TECHNOLOGY COMPANIES AMERICAN POWER CONVERSION'S FIGURE ROSE 19 TO 145 MILLION SHARES MOBILE TELECOMMUNICATIONS TECHNOLOGIES CORP JUMPED 19 TO EIGHT MILLION SHARES MCI COMMUNICATIONS CORP LEAPED 22 TO 79 MILLION AND SUN MICROSYSTEMS INC SURGED 26 TO 51 MILLION SHORT INTEREST IN WESTWOOD ONE INC SURGED TO 21 MILLION SHARES MORE THAN 10 TIMES THE PRIOR MONTH'S 201213 SHARES THE CULVER CITY CALIF COMPANY PRODUCES AND DISTRIBUTES REGULARLY SCHEDULED NEWS SPORTS AND ENTERTAINMENT RADIO PROGRAMS AS WELL AS CABLE TELEVISION PROGRAMS WESTWOOD ONE AND INFINITY BROADCASTING CORP RECENTLY SAID THEY AGREED TO COMBINE THEIR RADIO NETWORK OPERATIONS WHICH WOULD GIVE THE COMPANIES A 40 SHARE OF THE US RADIONETWORK MARKET AND MAKE INFINITY THE LARGEST WESTWOOD ONE SHAREHOLDER WITH A 25 STAKE WESTWOOD ONE EARLIER POSTED A THIRDQUARTER LOSS OF 60 CENTS A SHARE WIDENED FROM 52 CENTS A YEAR EARLIER YESTERDAY THE STOCK EASED 1/8TO 6 1/4 APPLE COMPUTER INC'S SHORT INTEREST POSITION ROSE 17 TO 76 MILLION LAST WEEK PAINEWEBBER LOWERED ITS RATING ON THE STOCK TO UNATTRACTIVE FROM NEUTRAL THE STOCK FELL 1/4 TO 29 3/4 YESTERDAY THE FOLLOWING TABLE SHOWS THE NASDAQ ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 100000 SHARES EXISTED AT MIDOCTOBER OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDSEPTEMBER SEE ACCOMPANYING TABLES WSJ OCT 27 1993 9310270094 931027 REVIEW & OUTLOOK EDITORIAL ASIDES WHILE YOU'RE AT IT THE MUNICIPALBOND INDUSTRY APPEARS TO HAVE WITHDRAWN ITSELF FROM THE POLITICAL CONTRIBUTION HUSTLE HOPEFULS PARTICULARLY THOSE WITH CONNECTIONS TO PUBLIC FINANCE HAD WRUNG MILLIONS OUT OF THE TAXEXEMPT TRADE BUT WHAT WE WONDERED ABOUT DONATIONS TO INITIATIVE CAMPAIGNS THE MUNI INDUSTRY IS COUNTED ON TO SUPPLY ALMS TO KILL OFF TAXPAYER REVOLTS A SPOKESMAN FOR THE MUNI RULEMAKING BOARD SAYS FUNDING WILL STILL BE OK AS LONG AS IT'S NOT SOLICITED BY A PUBLIC OFFICIAL 9310270093 931027 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 7/8 LOW 2 7/8 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 89 DAYS 321 90 TO 179 DAYS 323 180 TO 239 DAYS 327 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 315 60 DAYS 328 90 DAYS CERTIFICATES OF DEPOSIT 255 ONE MONTH 259 TWO MONTHS 269 THREE MONTHS 277 SIX MONTHS 290 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 306 30 DAYS 306 60 DAYS 322 90 DAYS 321 120 DAYS 321 150 DAYS 321 180 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 APCOLUMN 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 682 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 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 9310270092 931027 LETTERS TO THE EDITOR MALPRACTICE FEARS REGARDING DAVID MCINTOSH'S SEPT 22 RULE OF LAW WITHOUT MALPRACTICE REFORM FORGET HEALTH CARE REFORM THE HEADLINE IS ABSOLUTELY CORRECT AND FOR AN ADDITIONAL REASON THE AUTHOR DID NOT CITE BECAUSE OF THE OUTRAGEOUS MALPRACTICE CLAIMS THAT ARE FILED AND NOT NECESSARILY SIMPLY BECAUSE OF THE EQUALLY OUTRAGEOUS AWARDS SOMETIMES GRANTED BY JURIES DOCTORS PRACTICE DEFENSIVELY TESTS PROCEDURES CONSULTATIONS ARE ALL ORDERED IN AN EVER INCREASING COST SPIRAL IN AN ATTEMPT TO PROVIDE AGAINST A POSSIBLE CLAIM THAT MIGHT BE MADE IN THE EVENT OF PATIENT DISSATISFACTION OR AN UNEXPECTED RESULT IN SHORT THE POSSIBILITY OF A MALPRACTICE CLAIM ASIDE FROM THE POTENTIAL AWARD CAUSES INCREASED AND UNNECESSARY MEDICAL EXPENSES CORONA DEL MAR CALIF 9310270091 931027 FINANCING BUSINESS EW SCRIPPS CO EW SCRIPPS CO CINCINNATI SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF 46 MILLION CLASS A COMMON SHARES OWNED BY THE EDWARD W SCRIPPS TRUST THE COMPANY'S CONTROLLING SHAREHOLDER SCRIPPS A MEDIA COMPANY SAID IT WON'T RECEIVE ANY PROCEEDS OF THE SALE MERRILL LYNCH & CO WILL BE LEAD MANAGER AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP WILL COMANAGE THE TRUST CURRENTLY OWNS ABOUT 68 OF CLASS A SHARES OUTSTANDING AND ABOUT 80 OF COMMON VOTING STOCK OUTSTANDING THE TRUST TOLD SCRIPPS THAT IT IS SELLING CLASS A SHARES IN ORDER TO DIVERSIFY ASSETS 9310270090 931027 SMALL STOCK FOCUS STOCKS SHRINK FURTHER FROM RECORDS AMID MORE WAVES OF PROFITTAKING BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS SHRANK FURTHER FROM THEIR RECORDS IN MORE WAVES OF PROFITTAKING OBSERVERS SAID INVESTORS CONTINUE TO DUMP THEIR SMALLER ISSUES AS THEY GRAVITATE TOWARD LARGER CYCLICAL SECURITIES BUT THEY SAID THE TREND COULD REVERSE ANY DAY PUSHING SMALLCAP STOCKS BACK INTO FAVOR DECLINERS JUMPED AHEAD OF NASDAQ ADVANCING ISSUES 1584 TO 1371 NASDAQ NATIONAL MARKET VOLUME WAS AT 254293400 SHARES UP FROM 241847600 SHARES MONDAY TOTAL NASDAQ VOLUME INCREASED TO 295901000 SHARES FROM 284464000 SHARES IT'S WHAT EVERYONE'S SAYING SOME OF THESE OVERTHECOUNTER STOCKS HAVE GAINED A LOT OF VALUE SO PEOPLE HAVE FLIPPED INTO SOME LAGGARDS AMONG THE BLUE CHIPS SAID PAUL STANTON HEAD OF OTC TRADING AT JOHNSTON LEMON & CO WE'RE JUST AT A POINT WHERE THERE'S A LOT OF JUMPING OUT OF ONE INTO ANOTHER THE NASDAQ IS STILL CORRECTING SAID JIM TARANTINO HEAD OF OTC TRADING AT HAMBRECHT & QUIST THE STOCKS GOT AHEAD OF THEMSELVES AND EVERYTHING HAPPENS QUICKLY THESE DAYS PEOPLE USE ANY EXCUSE TO SELL OFF PRESSURE WAS ALSO FELT FOLLOWING THE RELEASE OF DISAPPOINTING ECONOMIC DATA THE CONFERENCE BOARD'S INDEX OF CONSUMER CONFIDENCE THIS MONTH FELL TO 594 DOWN FROM A REVISED READING OF 638 FOR SEPTEMBER THE INDEX HAS DROPPED MORE THAN 17 POINTS SINCE JANUARY THE RUSSELL 2000 INDEX HAS DROPPED 516 POINTS OR 198 SINCE IT REACHED ITS CLOSING RECORD OF 25998 ON OCT 15 THE NASDAQ COMPOSITE INDEX HAS FALLEN 2195 POINTS OR 278 FROM ITS ALLTIME CLOSING HIGH OF 78742 SET THE SAME DAY SPECTRUM INFORMATION TECHNOLOGIES INC WAS THE DAY'S MOST ACTIVE NASDAQ ISSUE FOR THE SECOND DAY ON VOLUME OF SIX MILLION SHARES COMPARED WITH AVERAGE DAILY TURNOVER OF 31 MILLION SHARES THE MANHASSET NYBASED DEVELOPER OF WIRELESS DATA TRANSMISSION TECHNOLOGY GAINED 1/8 TO 8 5/8 ELSEWHERE IN THE COMMUNICATIONS GROUP MOST STOCKS LOST GROUND FIRST PACIFIC NETWORKS INC OF SUNNYVALE CALIF DROPPED 1/4 TO 12 3/4 VANGUARD CELLULAR SYSTEMS INC SLIPPED 1/4 TO 32 AND WERNER ENTERPRISES INC BASED IN OMAHA NEB WAS DOWN 1/2 TO 27 IN THE INITIALPUBLICOFFERING ARENA DURACRAFT INC CLOSED AT 16 1/2 UP FROM ITS DEBUT YESTERDAY AT 14 THE WHITINSVILLE MASS MAKER OF BRANDED CONSUMER HOUSEHOLD PRODUCTS SAID PROCEEDS WILL GO TO REDUCE DEBT TO BUY ADDITIONAL MANUFACTURING AND DISTRIBUTION FACILITIES FOR WORKING CAPITAL AND FOR GENERAL CORPORATE PURPOSES ILLINOIS SUPERCONDUCTOR CORP FINISHED THE DAY AT 14 3/4 WELL ABOVE ITS INITIAL PRICE OF 11 1/4 A SHARE THE COMPANY MAKES PRODUCTS FOR COMMERCIAL APPLICATIONS USING HIGHTEMPERATURE SUPERCONDUCTING MATERIALS AND ITS THICKFILM FABRICATION TECHNOLOGY IN OTHER NEWS PHARMACEUTICAL RESOURCES INC SURGED 3 1/8 TO 17 IN NEW YORK STOCK EXCHANGE TRADING THE FOOD AND DRUG ADMINISTRATION LIFTED A TWOYEAR BAN ON THE SPRING VALLEY NY HOLDING CONCERN'S NEW DRUG APPLICATIONS THE AGENCY TOLD THE COMPANY IT WILL NOW REVIEW FILINGS SUBMITTED BY ITS PAR PHARMACEUTICALS INC SUBSIDIARY SHARES OF COMPANIES CONTINUED TO MOVE ON EARNINGSRELATED NEWS LATE MONDAY DAY RUNNER INC REPORTED THIRDQUARTER NET INCOME OF 22 CENTS A SHARE BELOW THE YEARAGO 29 CENTS A SHARE AND ANALYSTS' PROJECTIONS OF 31 CENTS THE STOCK PRICE OF THE FULLERTON CALIF MAKER OF PERSONAL ORGANIZERS FELL 2 1/2 TO 10 1/2 CENTRAL HOLDING CO SOARED 1 7/8 OR 625 TO 4 7/8 THE CLINTON TOWNSHIP MICH SAVINGS AND LOAN HOLDING COMPANY WILL BE ACQUIRED BY BIG BOARDLISTED STANDARD FEDERAL BANK FOR ABOUT 213 MILLION CENTRAL HOLDING ALSO REPORTED FISCAL FIRSTQUARTER INCOME FROM CONTINUING OPERATIONS ROSE TO 8 CENTS A SHARE FROM 3 CENTS A YEAR EARLIER NATIONAL COMPUTER SYSTEMS SLIPPED 2 1/4 TO 11 3/4 THE EDEN PRAIRIE MINN SOFTWARE FIRM SAID IT EXPECTS TO POST THIRDQUARTER EARNINGS THAT FALL SHORT OF THE YEAREARLIER 23 CENTS A SHARE AND ANALYSTS' PROJECTIONS PORTLAND OREBASED ARROW TRANSPORTATION CO EASED 5/8 TO 6 3/8 THE PROVIDER OF TRANSPORTATION FOR BULKLIQUID CHEMICAL PRODUCTS SAID IT SEES THIRD AND FOURTHQUARTER EARNINGS FALLING BELOW WALL STREET'S EXPECTATIONS RESULTS FOR THE YEARAGO PERIODS ARE NOT AVAILABLE BECAUSE THE COMPANY COMPLETED ITS INITIAL PUBLIC OFFERING ON JULY 22 INTEREST RATESENSITIVE ISSUES GOT SLUGGED FFBS BANCORP LOST 1 TO 15 1/2 INDEPENDENCE BANCORP OF PERKASIE PA SANK 2 1/4 TO 27 3/4 AND SUMMIT BANCORPORATION BASED IN CHATHAM NJ DROPPED 1 1/2 TO 20 3/4 NASDAQ NATIONAL MARKET STOCKS THAT HAVE REACHED NEW HIGHS FOR THE YEAR TO DATE TOTALED 115 WHILE 55 ISSUES REACHED NEW LOWS 9310270089 931027 CREDIT MARKETS TREASURY MARKET REBOUNDS AS BUYERS RETURN ON REPORT OF FLAGGING CONSUMER CONFIDENCE BY LESLIE SCISM AND JACQUELINE DOHERTY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK CALMED BY NEWS THAT CONSUMER CONFIDENCE IN THE ECONOMY IS FLAGGING BOND INVESTORS RENEWED THEIR BUYING YESTERDAY AND PUSHED UP PRICES SLIGHTLY AFTER THREE STRAIGHT SESSIONS OF LOSSES THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND GAINED NEARLY 1/4 POINT OR ALMOST 250 FOR A BOND WITH 1000 FACE VALUE TO 103 19/32 THE YIELD ON THE LONG BOND FELL TO 598 FROM 6 ON MONDAY THE PRICE GAIN CAME AS RELIEF TO INVESTORS WHO HAD WATCHED THE BENCHMARK TREASURY DROP NEARLY THREE POINTS IN PRICE OR ABOUT 30 FOR A BOND WITH 1000 FACE VALUE SINCE OCT 15 THAT'S THE DAY THE 30YEAR YIELD HIT 579 ITS LOWEST LEVEL SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF 30YEAR BONDS IN 1977 THAT LOW YIELD CAME IN REACTION TO REPORTS INDICATING THAT INFLATION WAS STILL SUBDUED BUT IN THE DAYS SINCE THEN MANY BOND INVESTORS BECAME WORRIED THAT YIELDS HAD FALLEN TOO FAR TOO FAST AND THEY SOLD ON A HANDFUL OF MANUFACTURING AND SALES REPORTS SHOWING SLIGHTLY STRONGERTHANEXPECTED ECONOMIC ACTIVITY BOND INVESTORS FEAR INFLATION BECAUSE IT ERODES THE VALUE OF FIXEDINCOME INVESTMENTS BUT YESTERDAY BOND INVESTORS GOT FRESH EVIDENCE THAT CONSUMERS AT LEAST AREN'T OPTIMISTIC ABOUT THE ECONOMY THE CONFERENCE BOARD REPORTED THAT ITS OCTOBER CONSUMER CONFIDENCE INDEX FELL TO 594 FROM A REVISED 638 IN SEPTEMBER MANY INVESTORS HAD EXPECTED THE INDEX TO INCREASE ALSO YESTERDAY THE JOHNSON REDBOOK SERVICE AN AFFILIATE OF LYNCH JONES & RYAN INC REPORTED THAT SALES AT THE NATION'S RETAILERS IN THE FIRST THREE WEEKS OF OCTOBER WERE UP A MODERATE SEASONALLY ADJUSTED 08 FROM SEPTEMBER LAST WEEK THE REDBOOK REPORT SHOWED SALES HAD RISEN 13 IN THE FIRST TWO WEEKS OF OCTOBER FROM THE PREVIOUS MONTH EVERY ECONOMIC INDICATOR HAD BEEN FOR A BULLISH FOURTH QUARTER FOR ECONOMIC GROWTH AND THESE TWO SHOWED THAT THAT'S NOT NECESSARILY A GIVEN SAID JOSEPH ROGERS TRADING MANAGER FOR GREENWICH CAPITAL MARKETS INC OF GREENWICH CONN A LOT OF THE MORE AGGRESSIVE TYPES OF TRADING ACCOUNTS HAD RECENTLY SOLD SHORT HE SAID BECAUSE THEY THOUGHT FUNDAMENTALS WERE TURNING BEARISH FOR THE BOND MARKET IN A SHORT SALE AN INVESTOR SELLS A BORROWED SECURITY IN THE HOPE OF BUYING IT BACK LATER AT A LOWER PRICE AND POCKETING THE DIFFERENCE BUT YESTERDAY'S REPORTS WERE SUPRISINGLY LESS BULLISH ON THE ECONOMY THAN THE EXPECTATIONS PROMPTING INVESTORS TO QUICKLY BUY BACK WHAT THEY HAD SOLD IN ORDER TO MINIMIZE LOSSES MANY INVESTORS ALSO MADE SHORT SALES IN ADVANCE OF YESTERDAY'S AUCTION OF 1653 BILLION OF NEW TWOYEAR NOTES MR ROGERS SAID THE TREASURY AWARDED ITS NEW NOTES AT 394 THE SAME YIELD AWARDED AT AUCTIONS IN AUGUST AND SEPTEMBER BUT DEMAND FOR THE NOTES WAS DOWN THIS MONTH THIS BIDTOCOVER RATIO WHICH COMPARES BIDS TENDERED TO THOSE ACCEPTED BY THE TREASURY WEAKENED TO 242 TO 1 FROM 268 TO 1 IN SEPTEMBER AND 349 TO 1 IN AUGUST MEANWHILE LATE YESTERDAY UNDERWRITERS WERE TRYING TO WRAP UP SALES OF 1 BILLION OF GLOBAL BONDS FOR THE KINGDOM OF SWEDEN THE THREEYEAR DOLLARDENOMINATED ISSUE IS THE LATEST IN A SERIES OF INTERNATIONAL SECURITIES TO BE MARKETED IN THE US IT IS ONE OF THE FIRST TO HAVE A FLOATING RATE ISSUERS OF GLOBAL BONDS THIS YEAR INCLUDE PORTUGAL ITALY THE WORLD BANK AND CERTAIN CANADIAN ISSUERS ARGENTINA IS SLATED TO SELL A GLOBAL BOND ISSUE LATER THIS YEAR IT WILL BE THE FIRST GLOBAL BOND OFFERING FROM AN ISSUER WITH A NONINVESTMENTGRADE RATING THE SWEDISH GLOBAL ISSUE WAS PRICED YESTERDAY AT 9990 AND BASED ON YESTERDAY'S THREEMONTH LONDON INTERBANK OFFERED RATE IT WOULD YIELD 335 THE SWEDISH ISSUE WILL DELIVER HIGHER YIELDS IF SHORTTERM RATES RISE BECAUSE THE COUPON PAYS 1/8 POINT BELOW THE LIBOR THE COUPON IS PAID AND RESET QUARTERLY MOST US BONDS COME WITH SEMIANNUAL COUPON PAYMENTS AS MUCH AS 25 OF THE ISSUE WAS EXPECTED TO BE SOLD TO US INVESTORS WHO HAVE EAGERLY SNAPPED UP THE OTHER RECENT GLOBAL SECURITIES THEY'RE POPULAR BECAUSE THEY CAN BE TRADED IN ANY OF THE WORLD'S MAJOR MARKETS AND MANY DELIVER HIGHER YIELDS THAN INVESTORS CAN GET FROM US ISSUERS BRAD JACK A MANAGING DIRECTOR AT LEHMAN BROTHERS INC WHICH LED THE UNDERWRITING WITH JP MORGAN SECURITIES LTD SAID MOST OF THE SALES WERE IN EUROPE AND ASIA BUYERS INCLUDED CENTRAL BANKS AND PENSION FUNDS THE UNDERWRITERS EXPECTED TO COMPLETE SALES SO TRADING COULD START WHEN LONDON MARKETS OPEN THIS MORNING THE SWEDISH ISSUE IS RATED DOUBLEA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAPLUS BY STANDARD & POOR'S CORP INVESTORS HAVE MORE ECONOMIC REPORTS TO LOOK FORWARD TO THIS WEEK TODAY THE GOVERNMENT IS TO RELEASE DURABLEGOODS DATA AND TOMORROW IT REPORTS ON THE GROSS DOMESTIC PRODUCT LATE YESTERDAY THE FIVEYEAR NOTE TO BE AUCTIONED TODAY WAS YIELDING 478 IN WHENISSUED TRADING DOWN FROM 480 ON MONDAY MEANWHILE IN THE CANADIAN BOND MARKET PRICES DROPPED SHARPLY EARLY IN THE DAY IN THE WAKE OF MONDAY'S NATIONAL ELECTION IN WHICH THE LIBERAL PARTY GAINED POWER BUT BY DAY'S END MANY PRICES HAD BOUNCED BACK AND THE MARKET ENDED MIXED THE CANADIAN BENCHMARK 30YEAR BOND THE 8 COUPON BOND MATURING IN 2023 ENDED 010 POINT LOWER AT 10725 YESTERDAY TO YIELD 739 COMPARED WITH 740 BEFORE THE POLLS CLOSED ON MONDAY THE BOND HAD DROPPED AS MUCH AS 120 POINTS EARLIER IN THE DAY WE ARE OPTIMISTIC THAT THE OUTCOME OF THE ELECTION WILL NOT SERIOUSLY DETRACT FROM THE ECONOMIC FUNDAMENTALS OF THE COUNTRY SAID ADAM GRESHIN A PRINCIPAL IN THE GLOBALBOND GROUP AT SCUDDER STEVENS & CLARK OF BOSTON THESE ECONOMIC FUNDAMENTALS INCLUDE A LOW INFLATION RATE MODERATE ECONOMICGROWTH RATE AND PRESSING GOVERNMENT FISCAL PROBLEMS THAT WILL PRECLUDE ADDITIONAL SPENDING HE SAID HERE ARE DETAILS OF THE US TREASURY'S AUCTION OF TWOYEAR NOTES YESTERDAY 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 1995 A DIVERSE ARRAY OF COMPANIES HIT THE CORPORATE NEWISSUE MARKET NATIONAL BANK OF HUNGARY HIT THE MARKET EARLY IN THE DAY WITH A 200 MILLION OFFERING OF 10YEAR YANKEE NOTES THROUGH SALOMON BROTHERS INC A YANKEE ISSUE IS A DEBT OFFERING BY A FOREIGN ISSUER IN THE US THAT IS OFTEN DENOMINATED IN DOLLARS THERE WERE ALSO OFFERINGS FROM NATIONSBANK CORP HF AHMANSON & CO'S HOME SAVINGS OF AMERICA AND UNION PLANTERS CORP THE HUNGARY NOTES WERE PRICED AT 99843 TO YIELD 7937 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 00255 POINT ABOVE 10YEAR US TREASURY NOTES RATED BA1 BY MOODY'S AND DOUBLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC THE JUNKBOND MARKET MAY BE TURNING BACK INTO A SELLERS' MARKET ONE SYNDICATE OFFICIAL SAID THAT'S BECAUSE NEW MONEY RECENTLY HAS BEEN FLOWING INTO MUTUAL FUNDS WHICH ARE AMONG THE BIGGEST BUYERS OF SUCH SECURITIES FOR EXAMPLE ECKERD CORP'S JUNKBOND OFFERING YESTERDAY WAS DOUBLED TO 200 MILLION AND PRICED AT 925 BELOW THE ORIGINAL RANGE OF 9375 TO 95 SYNDICATE OFFICIALS NOTED THE ISSUE BY THE DRUGSTORE CONCERN WHOSE DEBT IS RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P WAS PRICED AT PAR TO YIELD 925 MERRILL LYNCH & CO WAS THE SOLE MANAGER FOR THE OFFERING ISSUERS FLOCKED TO THE MUNICIPALBOND MARKET WITH MORE THAN 2 BILLION OF NEW SECURITIES DESPITE MUNI PRICE DROPS IN THE LAST THREE SESSIONS THAT BOOSTED YIELDS WHILE THE PRICINGS OF A NUMBER OF ISSUES APPEARED TO BE SUCCESSFUL THAT WASN'T THE CASE FOR WISCONSIN THE PRICING FOR MOST OF THE STATE'S 2093 MILLION OF GENERAL OBLIGATION BONDS WAS CANCELED DUE TO MARKET CONDITIONS LEAD UNDERWRITER BEAR STEARNS & CO SAID PRICING FOR 1893 MILLION OF REFUNDING BONDS WAS CANCELED AND YIELDS FOR THE REMAINING 20 MILLION OF NEWMONEY BONDS WERE RAISED 005 TO 010 POINTS TO ATTRACT BUYERS IN THE SECONDARY MARKET MUNIS FINALLY STARTED TO STABILIZE AND PRICES WERE 1/8 LOWER TO 1/4 HIGHER AT THE CLOSE THE LARGEST MUNI OFFERING TO MAKE ITS DEBUT WAS LOS ANGELES'S 3907 MILLION OF SERIES 1993D WASTEWATER SYSTEM REVENUE REFUNDING BONDS THOSE BONDS WERE WON BY A MORGAN STANLEY & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 535 YIELDS FOR REOFFERED BONDS RANGE FROM 275 IN 1994 TO 475 IN 2003 MEANWHILE 17 MUNICIPAL UNDERWRITERS WHO HAVE VOLUNTARILY SWORN OFF POLITICAL CONTRIBUTIONS WILL MEET TODAY AT MERRILL LYNCH & CO'S NEW YORK HEADQUARTERS TO BEGIN HAMMERING OUT THE DETAILS OF A POLICY TO BAN SUCH PAYMENTS A MERRILL REPRESENTATIVE SAID MORTGAGE SECURITIES FINISHED WITH SLIM GAINS REFLECTING THE TREASURY MARKET'S SLIGHT UPTURN AND A CALMING OF PREPAYMENT FEARS THE TREASURY MARKET SELLOFF THIS WEEK AMID SIGNS OF IMPROVED ECONOMIC GROWTH HAS ALLAYED CONCERN ABOUT THE PACE OF HOME REFINANCINGS AND EARLY PREPAYMENTS OF MORTGAGE SECURITIES COMMENTS BY OFFICIALS OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORP APPARENTLY CONTRIBUTED TO THIS SENSE OF CALM I THINK WE MAY HAVE SEEN THE LAST GREAT WAVE OF REFINANCING SAID FREDDIE MAC CHAIRMAN LELAND BRENDSEL AT THE MORTGAGE BANKERS ASSOCIATION OF AMERICA CONVENTION IN CHICAGO IN SECONDARY DEALINGS OF 6 MORTGAGE SECURITIES FOR NOVEMBER DELIVERY GINNIE MAES FIRMED 4/32 TO 98 25/32 FREDDIE MAC GOLDS GAINED 5/32 TO 98 17/32 AND FANNIE MAES ROSE 5/32 TO 98 9/32 ISSUES WITH COUPONS OF 7 OR HIGHER WERE AS MUCH AS 6/32 STRONGER THE SECONDARY MARKET ALSO WAS SUPPORTED BY PURCHASES OF COLLATERAL FOR THIS WEEK'S NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS A NEW REMIC AND AN UPSIZING WERE ANNOUNCED FOR A TOTAL OF 1 BILLION NEW FREDDIE MAC SECURITIES IN THE ASSETBACKED MARKET ZIONS FIRST NATIONAL BANK OFFERED 1594 MILLION OF CERTIFICATES BACKED BY HOMEREFINANCE LOANS THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO THE CERTIFICATES WERE SUPPORTED BY A 100 FGIC INSURANCE WRAP THE 515 ISSUE WAS PRICED AT 999380 TO YIELD 508 WHICH IS 102 POINTS OVER INTERPOLATED 2 1/2YEAR TREASURYS ZIONS FIRST NATIONAL IS A UNIT OF ZIONS BANCORP GENE COLTER CONTRIBUTED TO THIS COLUMN 9310270088 931027 CORRECTIONS & AMPLIFICATIONS URBAN HOUSEHOLD INCOME IN SOUTH KOREA INCREASED 31 IN THE SECOND QUARTER TO AN INFLATIONADJUSTED AVERAGE OF 15900 A YEAR NOT A MONTH AS REPORTED IN THE OCT 8 WORLD WIRE COLUMN AQUILA GAS PIPELINE CORP IS A DIVERSIFIED NATURAL GAS CONCERN BASED ON ERRONEOUS INFORMATION PROVIDED BY THE NEW YORK STOCK EXCHANGE MONDAY'S NEW STOCK LISTINGS COLUMN STATED THAT THE COMPANY WAS A MAKER OF LEADACID BATTERIES 9310270087 931027 WHO'S NEWS AMERON INC AMERON INC PASADENA CALIF GARY WAGNER 42YEAROLD VICE PRESIDENT AND TREASURER WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS PIPE AND CONCRETE PRODUCTS MAKER MR WAGNER WHO RETAINS HIS RESPONSIBILITIES AS TREASURER SUCCEEDS ROGER HAY WHO RESIGNED FOR PERSONAL REASONS 9310270086 931027 OUR TASTE TEST SOME PETS NIBBLE SOME PETS QUIBBLE OVER MEATLESS FARE BY SUEIN L HWANG WHAT DO PETS THINK OF THE VEGETARIAN DIETS THEIR OWNERS PUT THEM ON PETS CAN'T SPEAK OF COURSE BUT THEY CAN SAY VOLUMES WITH THEIR APPETITES WITH THIS IN MIND THE WALL STREET JOURNAL CONDUCTED AN INFORMAL UNSCIENTIFIC TASTE TEST WITH 15 MEATEATERS SEVEN DOGS AND EIGHT CATS VOLUNTEERED BY OUR EMPLOYEES AT DINNER THE SEVEN DOGS WERE OFFERED THREE COMMERCIALLY MADE VEGETARIAN PET PRODUCTS THE EIGHT CATS MEANWHILE WERE PRESENTED WITH A HOMEMADE KIBBLE BASED UPON A RECIPE FROM JAMES PEDEN AUTHOR OF VEGETARIAN CATS AND DOGS THE BOOK IS PUBLISHED BY HIS COMPANY HARBINGERS OF A NEW AGE A TROY MONT MAKER OF PET HEALTHFOOD SUPPLEMENTS THE KIBBLE INCLUDED GARBANZO FLOUR CRUMBLED SEAWEED NUTRITIONAL YEAST AND VEGECAT A HARBINGER VEGETARIAN CAT SUPPLEMENT THE CATS WILL LOVE IT INSISTED MR PEDEN THE COMPANY'S PRESIDENT THE CATS WERE OF ANOTHER OPINION FIVE OF EIGHT FELINES REFUSED TO HAVE ANYTHING TO DO WITH THE GARBANZO KIBBLE TWO CATS MARY O LEMEW AND SATAN ATE IT BUT HAD PROBLEMS CHEWING THE KIBBLE WHICH HAD THE TEXTURE OF STALE BREAD ONLY DAISY A CHUBBY SHORTHAIR SEEMED TO ENJOY THE VICTUALS SHE WAS ACTUALLY PURRING AS SHE ATE IT HER AMAZED OWNER SAYS THE CANINE TASTERS PROVIDED MIXED REVIEWS SIX OF THE SEVEN DOGS ENTHUSIASTICALLY ATE THE WOWBOW VEGETARIAN DOG BISCUITS SOME CREATIVELY SHAPED LIKE PUMPKINS FOR HALLOWEEN THE SEVENTH DOG ATE HIS WOWBOW BUT INDIFFERENTLY BUT TWO NATURE'S RECIPE VEGETARIAN PRODUCTS ONE CANNED ONE DRY DIDN'T FARE AS WELL OF THE DOGS WHO TRIED THE CANNED NATURE'S RECIPE ONLY THREE ATE IT AND WHILE FIVE OF THE SEVEN DOGS ATE THE DRY FOOD ROHAN A 100POUND GERMAN SHEPHERD SPIT OUT HIS FIRST MOUTHFUL HE LOOKED AT ME AS IF HE'D BEEN BETRAYED SAYS HIS OWNER WARNING DON'T LEAVE ANY NATURE'S RECIPE VEGETARIAN DRY DOG FOOD LYING AROUND THE HOUSE UNLABELED IT BEARS A REMARKABLE RESEMBLANCE TO HUMAN BREAKFAST CEREAL BUT IT WASN'T AS BAD AS I EXPECTED SAYS ONE REPORTER WHO MISTAKENLY BECAME A PARTICIPANT IN THE JOURNAL TASTE TEST IT HAD A DELICATE FLAVOR SEE RELATED ARTICLE RUFF RUFF RUFFAGE HERE ROVER HAVE A NICE BEAN SPROUT TURNING PETS INTO VEGETARIANS IS HEALTHY OWNERS SAY VETERINARIANS ARE HOWLING WSJ OCT 27 1993 9310270085 931027 REVIEW & OUTLOOK EDITORIAL CANADIANS TAKE ACCOUNT NORTHROP FRYE THE LATE CANADIAN LITERARY CRITIC ONCE OBSERVED THAT AMERICANS LIKE TO MAKE MONEY CANADIANS LIKE TO AUDIT IT I KNOW NO COUNTRY WHERE ACCOUNTANTS HAVE A HIGHER SOCIAL AND MORAL STATUS THE RESULTS OF MONDAY'S NATIONAL ELECTION SUGGEST THAT ACCOUNTING 101 STILL MAY BE RESIDENT ON PARLIAMENT HILL THE ELECTION SHOOK CANADA'S POLITICAL SYSTEM TO ITS FOUNDATIONS THE PROGRESSIVE CONSERVATIVES IN POWER THE PAST NINE YEARS ARE NEARLY EXTINCT OF THEIR 155 SEATS IN PARLIAMENT THEY NOW HAVE ONLY TWO THEIR COUNTERPARTS ON THE LEFT THE SOCIALIST NEW DEMOCRATS ALSO SUFFERED THE LIBERAL PARTY ASSUMED POWER BUT THE REAL STORY IS HOW THE POLITICAL VACUUM HAS BEEN FILLED BY TWO POPULIST ANTIGOVERNMENT MOVEMENTS THE BLOC QUEBECOIS WHICH WON 54 SEATS AND ADVOCATES THE SECESSION OF QUEBEC FROM CANADA LARGELY REFLECTS ALIENATION FROM THE RULING CLASS IN OTTAWA EVEN MORE STRIKING THE REFORM PARTY WHICH DID NOT EVEN EXIST SIX YEARS AGO AND UNTIL MONDAY NIGHT HAD ONE REPRESENTATIVE IN PARLIAMENT WILL SOON SEND 52 REPRESENTATIVES TO OTTAWA THE DRAMATIC HEAVEHO GIVEN TO CANADA'S TORIES IS BEST UNDERSTOOD AS PART OF A WORLDWIDE TREND FROM GEORGE BUSH HERE TO THE LIBERAL DEMOCRATIC PARTY IN JAPAN VOTERS ARE DUMPING AVOWEDLY MODERATE POLITICIANS WHO SEEM TO THINK THEIR CHARGE IS TO SIMPLY MANAGE A SPRAWLING PUBLIC SECTOR BUT VOTERS IN FRANCE AND ITALY HAVE ALSO DUMPED THESE TRADITIONAL MANAGERIAL ELITES RECENTLY WE SUPPOSE SOME WILL ARGUE THAT THE ELECTION OF LIBERAL JEAN CHRETIEN IN CANADA AND LIBERAL BILL CLINTON IN THE US HARDLY SUGGESTS VOTERS FLEEING FROM PAPA GOVERNMENT BUT WE THINK IT WOULD BE A MISTAKE TO IGNORE THE VOLATILE CURRENTS SWIMMING BELOW THE TRADITIONAL PARTIES IN THESE COUNTRIES CANADIAN REFORM PARTY LEADER PRESTON MANNING IS AN EVANGELICAL CHRISTIAN FROM CALGARY WHO RAN A SECULAR CAMPAIGN BEST SUMMED UP BY HIS OFTREPEATED SLOGAN DON'T GIVE US ANOTHER GOVERNMENT PROGRAM JUST GET OFF OUR BACKS AND OUT OF OUR POCKETS MR MANNING'S POPULARITY WHICH LIES MOSTLY WITH THE RUGGED INDIVIDUALISTS IN THE COUNTRY'S INCREASINGLY RESTIVE WESTERN PROVINCES GREW OUT OF A NATIONWIDE FRUSTRATION WITH THE BLOATED CANADIAN POLITICAL SYSTEM THE TORIES WITH THE COLLABORATION OF OTTAWA'S TENURED BUREAUCRATS HAVE THRUST CANADA INTO A FISCAL CRISIS UNEMPLOYMENT IS AT 11 NATIONALLY AND TAXES AND DEFICITS HAVE EXPLODED THE REVERED HEALTH CARE SYSTEM IS NO LONGER AFFORDABLE THE TORIES WHO HAVE GOVERNED SINCE 1984 CAME TO BE SEEN AS INCAPABLE OF REINING IN GOVERNMENT SPENDING BUT PERHAPS THEIR MOST NOTABLE MISREADING OF THE PUBLIC MIND WAS THEIR DETERMINATION TO CARRY OUT A 1986 GOVERNMENT SERVICE TAX A JOBDESTROYING MEASURE THAT RECALLS THE JAPANESE LDP'S SALES TAX HIKE WHICH CAUSED RIOTING IN AT LEAST ONE MAJOR CITY THERE KIM CAMPBELL CANADA'S DEFEATED PRIME MINISTER IS AN INTERESTING FIGURE IN THIS DRAMA SHE ENTERED OFFICE ON A HUGE WAVE OF PERSONAL POPULARITY BUT WENT ON TO PROVE THAT YOU DON'T HAVE TO BE A MAN TO LACK POLITICAL CONVICTION OR INSIGHT THE DUTIFUL STEWARD OF HER PARTY'S STATUSQUO POLICIES SHE OPTED FOR A LAGGARD CAMPAIGN THAT APPEARED NOT TO STAND FOR OR AGAINST ANYTHING TYPICALLY HER FAREWELL SPEECH CONCLUDED WITH A CALL FOR RESPECT FOR DIVERSITY AND TOLERANCE MR CHRETIEN AND HIS LIBERAL PARTY REPRESENT THE LAST CHANCE FOR CANADA'S GOVERNMENT CLASS TO SHOW THAT IT CAN RUN AN ECONOMY SOMEWHERE OTHER THAN INTO THE GROUND OUR SENSE IS THAT RECENT GLOBAL EVENTS ARE NOT ON THE SIDE OF THE LIBERALS VOTERS DON'T WANT POLS ADEPT AT MERELY REARRANGING THE FISCAL DECK CHAIRS AS THE LIBERALS' 45 BILLION JOBS PROGRAMS WOULD DO INSTEAD PEOPLE WANT LEANER MORE EFFICIENT GOVERNMENT GIVEN THE CONSTITUENCIES ARRAYED AGAINST ANY REAL CHANGE IN THE STATUS QUO WE SUSPECT THAT WHAT CANADA NEEDS MOST RIGHT NOW IS A RADICAL LEADER NOT ANOTHER OF MR FRYE'S CANADIAN ACCOUNTANTS 9310270084 931027 RULE OF LAW THE DANGER OF DEFENDING THE DENNY ACQUITTALS BY PAUL H ROBINSON WE ARE TOLD THAT THE DEFENDANTS IN THE BEATING OF REGINALD DENNY AND SEVEN OTHER VICTIMS COULD NOT BE CONVICTED OF SERIOUS OFFENSES BECAUSE THEY DID NOT HAVE THE REQUIRED INTENT THEY WERE SWEPT UP IN UNTHINKING MOB PSYCHOLOGY NORMALLY A BRICK FULLFORCE AT CLOSE RANGE TO THE HEAD OF AN UNCONSCIOUS VICTIM FOLLOWED BY A DANCE OF GLEE AT THE SPLATTERED BLOOD WOULD LEAVE LITTLE QUESTION ABOUT THE THROWER'S INTENT TO KILL BUT WHEN DONE AS PART OF A MOB WE ARE TOLD NO SUCH INTENTION EXISTS SUCH A SMASHING ALSO MIGHT NORMALLY SHOW AN INTENT TO DISFIGURE AS AGGRAVATED MAYHEM REQUIRES BUT NOT SO FOR RIOTERS RIOT USED TO BE AN OFFENSE NOW IT'S A DEFENSE NO OTHER STATE OR COUNTRY HAS EVER RECOGNIZED SUCH A DEFENSE THE NEW RIOT DEFENSE CONCEIVES OF A RIOT AS SOMETHING THAT TAKES AWAY A PERSON'S NORMAL MENTAL FACULTIES BUT EVERYTHING WE KNOW ABOUT RIOTING SUGGESTS THAT IT DOESN'T TAKE AWAY THINKING OR CONTROL JUST CONSCIENCE IN HIS STUDY OF BRITISH SOCCER HOOLIGANS BILL BUFORD DESCRIBES THE BEGINNINGS OF A RIOT THERE IN THE STREETS OF TOTTENHAM I WATCHED THE FACES CONCENTRATING AS MOMENT BY MOMENT EVERYONE TRIED TO BUILD UP THE CONFIDENCE OR THE INTENSITY OR SIMPLY THE STRENGTH OF FEELING THAT WOULD ALLOW THEM TO STEP OVER THE BOUNDARY FINALLY SOMEONE ANYONE COMMITS THE FIRST CRIME PROBABLY A MINOR ONE BUT THE BOUNDARY HAS BEEN STEPPED HAVING CROSSED THIS LINE THEY ARE NOW OUTSIDE OF THE CIVILIZATION THAT THEY LEFT BEHIND THE RAMPAGE IS ON ON THEIR FACES IT IS NOT PANIC OR FEAR OR ANGER OR REVENGE IT IS EXHILARATION LIKE DANCING A JIG FOR A SKULL CRACKED OPEN IT IS NOT THINKING OR CONTROL THAT IS LEFT BEHIND IN A RIOT IT IS RULES SOME OF MY FRIENDS REPEAT THE DEFENSE ARGUMENT THAT HAD DAMIAN WILLIAMS INTENDED TO KILL MR DENNY HE COULD HAVE FINISHED THE JOB THERE WAS NO ONE STOPPING HIM BUT THIS ASSUMES THAT WILLIAMS THOUGHT MORE WAS NEEDED TO FINISH THE JOB MORE THAN ONE PERSON WHO SAW THE TAPE THOUGHT ENOUGH HAD BEEN DONE AND WAS SURPRISED TO HEAR THAT MR DENNY SURVIVED MY FRIENDS' CONCLUSION ALSO ASSUMES THAT KILLING MR DENNY WAS THE ONLY GOAL THAT DAY BUT THESE WERE BUSY MEN THERE WERE MANY HEADS TO SMASH AND JIGS TO DANCE NO LINGERING OVER ANY ONE VICTIM TO BE SURE THE JOB WAS DONE THERE WERE PEOPLE TO ROB AND GENITALS TO PAINT NO COUNTRY HAS EVER RECOGNIZED A RIOT DEFENSE IN PART BECAUSE IT COULD NOT LONG SURVIVE IF IT DID THE DEFENSE IS A REVERSE OF SPORTS' THIRD MAN IN RULE WHEN TWO MEN ARE FIGHTING THAT RULE PROVIDES FOR AUTOMATIC EJECTION FROM THE GAME OF ANY PERSON WHO JOINS THE FIGHT THE RULE PREVENTS A MINOR DISTURBANCE FROM ESCALATING INTO A BENCHCLEARING BRAWL THE NEW RIOT DEFENSE WORKS IN REVERSE IT MAKES IT HARDER TO CONVICT A PERSON WHO JOINS IN A RIOT IT TAKES AWAY THE LAW'S DETERRENCE AT THE MOMENT IT IS NEEDED MOST WHY THEN SO MUCH EFFORT TO DEFEND THESE PECULIAR ACQUITTALS THERE IS MORE TO THE ACQUITTALS MY FRIENDS PATIENTLY EXPLAIN THAN A NEW RIOT DEFENSE FOR AN ATTACKER'S INTENT THERE IS THE INJUSTICE OF THE KING CASE ACQUITTALS THERE IS THE HIGHLY CHARGED ATMOSPHERE RIPE FOR FURTHER VIOLENCE THESE ACQUITTALS SEND A USEFUL MESSAGE AND SET THINGS RIGHT BUT DO WE WANT TO LIVE IN A WORLD WHERE CRIMINAL TRIALS ARE DECIDED BY THE POLITICS OF THE DAY THAT IS A MAD DOG THAT MAY BITE YOUR ENEMY TODAY BUT YOU TOMORROW IF THESE ACQUITTALS AVOID A RIOT NOW THEY PLANT THE SEEDS FOR MANY IN THE FUTURE WILL TOMORROW'S JUROR UNHAPPY WITH THESE ACQUITTALS SEND A MESSAGE TO SET THINGS RIGHT WILL RIOTS FOLLOW NOW THAT THEY ARE A KNOWN EFFECTIVE MEANS TO EXPRESS DISPLEASURE AND GET DESIRED RESULTS WHERE WILL IT END THE ACQUITTALS ARE NOT JUST POLITICAL EXPEDIENCY A FRIEND EXPLAINS I DISAPPROVE OF THE VIOLENCE OF COURSE BUT I UNDERSTAND THE ANGER THAT THE DEFENDANTS MUST FEEL ABOUT THE SERIOUS INJUSTICE THEY SEE IN THE RODNEY KING VERDICTS APPARENTLY THE JURY FELT THE SAME WAY BUT THIS CONFUSES UNDERSTANDING WITH EXCUSING IF UNDERSTANDING A CRIME MEANT EXCUSING IT CRIMINAL LAW WOULD BE FADING AWAY AS THE BEHAVIORAL SCIENCES ADVANCE WE MAY UNDERSTAND THE PSYCHOLOGICAL FORCES THAT TRIGGER A CRIME BUT IT DOES NOT FOLLOW THAT WE EXCUSE THE CRIME THIS WAS THE CONFUSION OF THE COURT IN DURHAM V US 1954 WHICH GAVE AN INSANITY DEFENSE IF THE CRIME WAS THE PRODUCT OF MENTAL ILLNESS IF THE CRIME WOULD NOT HAVE OCCURRED BUT FOR THE MENTAL ILLNESS THE COURT REASONED THEN THE MENTAL ILLNESS NOT THE PERSON WAS RESPONSIBLE FOR THE CRIME BUT THIS MEANT THAT A BAD PERSON INCLINED TO BREAK THE LAW COULD GET AN INSANITY DEFENSE EVEN IF THE MENTAL ILLNESS WAS MINOR AND CONTRIBUTED ONLY TANGENTIALLY TO THE DECISION TO COMMIT THE CRIME THE REASONING OF DURHAM NOW IS REJECTED BY EVERY JURISDICTION AND SERIOUS SCHOLAR AND THE CASE WAS SUBSEQUENTLY OVERRULED IN US V BRAWNER IT IS NOT BEING INFLUENCED BY MENTAL ILLNESS OR THE DRAW OF THE MOB THAT EXCUSES EVERY CHOICE IN LIFE IS INFLUENCED BY INTERNAL AND EXTERNAL CONDITIONS MOST OF WHICH ARE BEYOND THE ACTOR'S CONTROL WE EXCUSE ONLY WHEN THE EXTENT OF THE INFLUENCE IS SO OVERWHELMING THAT THE PERSON COULD NOT REASONABLY HAVE BEEN EXPECTED TO AVOID COMMITTING THE OFFENSE NOTHING COMPELLED DAMIAN WILLIAMS AND HENRY WATSON TO COMMIT THEIR CRIMES THE PROOF OF THAT IS THEIR NEIGHBORS THE VAST MAJORITY OF WHOM DID NOT TAKE TO THE STREETS OR IF THEY DID DID SO AT RISK TO THEIR OWN SAFETY TO RESCUE THE HAPLESS VICTIMS THE RIOTERS SELECTED LIKE THE SOCCER HOOLIGANS WILLIAMS AND WATSON WERE PART OF A SMALL GROUP THAT CHOSE TO BE RIOTERS ON KRISTALLNACHT NAZIS RAMPAGED AGAINST JEWS IN ONE OF THAT PERIOD'S EARLY ACTS OF WIDESPREAD ANTISEMITIC VIOLENCE THE NAZIS PERCEIVED JEWS AS RESPONSIBLE FOR THE ECONOMIC CHAOS IN GERMANY THE JEWS WEREN'T RESPONSIBLE FOR GERMANY'S DIFFICULTIES OF COURSE ANY MORE THAN WILLIAMS'S AND WATSON'S VICTIMS WERE RESPONSIBLE FOR THE PERCEIVED INJUSTICE OF THE KING VERDICTS NO DOUBT MANY REASONABLE GERMANS SAID I DISAPPROVE OF THE VIOLENCE OF COURSE BUT I UNDERSTAND THE ANGER THAT THE RIOTERS MUST FEEL ABOUT THE SERIOUS INJUSTICE THEY SEE IN THEIR COUNTRY'S CONDITION WE NOW LOOK BACK AT THOSE GERMANS AND HOLD THEM IN PART ACCOUNTABLE FOR THE GREATER VIOLENCE THAT FOLLOWED THEIR FAILURE AS A COMMUNITY TO BE OUTRAGED AND TO PUBLICLY EXPRESS THEIR OUTRAGE WE NOW SEE TO BE ACQUIESCENCE WHICH MADE FURTHER AND GREATER VIOLENCE EASIER WE COULD JUST IGNORE LA'S STRANGE SENSE OF JUSTICE BUT WHEN THE NEXT RIOT SEES A SKULL CRACKED OR MORE WILL WE BE JUDGED ACCOUNTABLE BECAUSE WE DID NOT AS A COMMUNITY EXPRESS OUR OUTRAGE AT THESE CRIMES AND THESE OFFENDERS MR ROBINSON LAW PROFESSOR AT NORTHWESTERN IS THE AUTHOR OF THE FORTHCOMING JUSTICE LIABILITY AND BLAME COMMUNITY VIEWS AND THE CRIMINAL LAW 9310270083 931027 LETTERS TO THE EDITOR MULTIPLE EFFECT IF I HAD MY CHOICE BETWEEN A VICE PRESIDENT WHO COULDN'T SPELL POTATO AND A PRESIDENT CURRENTLY IN CHARGE OF OUR FEDERAL DEFICIT WHO CAN'T ACCURATELY MULTIPLY 200 X 500 I'LL TAKE THE POOR SPELLER ANY DAY OF THE WEEK CHECK THE NUMBERS IF YOU CAN BY DONALD GOLDSMITH EDITORIAL PAGE OCT 6 WHERE ON EARTH WAS THE NATIONAL MEDIA WHEN THIS GOOF WAS MADE AND WHY HAVEN'T WE SEEN IT OVER AND OVER ON THE NIGHTLY NEWS NEVER MIND I WITHDRAW THE QUESTION 9310270082 931027 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION COASTAL HEALTHCARE GROUP INC AN OFFERING OF 25 MILLION NEWLY ISSUED COMMON SHARES VIA ALEX BROWN & SONS INC AG EDWARDS & SONS INC AND WHEAT FIRST SECURITIES INC DENTSPLY INTERNATIONAL INC AN OFFERING OF 3350000 COMMON SHARES INTEGRATED PROCESS EQUIPMENT CORP AN OFFERING OF ABOUT 15 MILLION UNITS OF COMMON STOCK AND WARRANTS LUTINE CAPITAL CORP AN INITIAL OFFERING OF 125 MILLION NEWLY ISSUED COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND MORGAN STANLEY & CO 9310270081 931027 SULTAN OF SWAPS FINANCE WIZARD SCORED MIGHTILY IN DERIVATIVES BUT DISPLEASED THE BOSS HOWARD SOSIN REFUSED TO LET AIG OFFICIAL REIN HIM IN NOW NEGOTIATES DIVORCE' TAKING RISKS OUT 30 YEARS BY GREG STEINMETZ AND BARBARA DONNELLY GRANITO STAFF REPORTERS OF THE WALL STREET JOURNAL HE'S KNOWN AS THE DR STRANGELOVE OF DERIVATIVES A FORMER COLUMBIA UNIVERSITY PROFESSOR WHO ARRIVED ON WALL STREET BY WAY OF AT&T'S BELL LABORATORIES HOWARD SOSIN HAS DISTINGUISHED HIMSELF AS ONE OF THE MOST BRILLIANT MATH WIZARDS IN FINANCE AN ALOOF OWLISH MAN WITH A RELENTLESS COMPETITIVE DRIVE AND FIXATION ON CONTROL HE ISN'T THE ONLY ROCKET SCIENTIST TO HAVE STORMED WALL STREET IN THE PAST DECADE BUT HE MAY BE THE MOST CONTROVERSIAL HIS SUCCESS EMBODIES THE QUANTUM LEAP TAKING PLACE IN FINANCE TODAY THIS WAS THE REVENGE OF THE NERDS SAYS ANDREW LO A FINANCE PROFESSOR AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY IT WAS A SIGNAL THAT THE FINANCIAL MARKETS HAVE ENTERED A NEW ERA WHEN QUANTITATIVE EXPERTISE IS NOT ONLY USEFUL IT'S INDISPENSABLE BUT MR SOSIN DIDN'T MERELY RIDE THE QUANTITATIVE WAVE HE USED ITS MOMENTUM AND HIS EXTRAORDINARY FREEDOM FROM MANAGEMENT CONSTRAINT TO VENTURE WHERE RIVAL MATH NERDS WOULDN'T GO AND WHILE THAT PRODUCED HUMONGOUS PROFITS IT ULTIMATELY MADE HIM VULNERABLE AS THE DERIVATIVES BUSINESS HAS EXPLODED INTO THE MAINSTREAM IT HAS INVITED REGULATORY SCRUTINY AND PUBLIC OUTCRY FOR MORE SUPERVISION NOW THE QUESTION FACING MR SOSIN IS CAN THE DERIVATIVES BUSINESS IN ITS SEARCH FOR RESPECT AND CREDIBILITY AFFORD ENTREPRENEURS LIKE HIM AMERICAN INTERNATIONAL GROUP INC THE GIANT NEW YORK INSURER AND MR SOSIN'S LATEST PARTNER EVIDENTLY DOESN'T THINK SO EARLIER THIS YEAR AIG TRIED TO REIN HIM IN RATHER THAN SUBMIT MR SOSIN QUIT TAKING WITH HIM THE VENTURE'S SOFTWARE WHICH HE COOWNED AND MOST OF ITS VAUNTED BRAIN TRUST A TEAM OF INTELLECTUALS CRUCIAL TO HIS OPERATION NOW AIG IS CONTESTING THROUGH ARBITRATION HOW MUCH IT MUST PAY TO DIVORCE HIM AT A MINIMUM MR SOSIN AT AGE 42 COULD COLLECT HUNDREDS OF MILLIONS OF DOLLARS FOR HIS 20 STAKE IN THE VENTURE KNOWN AS AIG FINANCIAL PRODUCTS JUST THE DIFFERENCE BETWEEN WHAT HE IS DEMANDING AND WHAT AIG IS OFFERING TOPS 100 MILLION WHILE LAWYERS FIGHT THAT BATTLE MR SOSIN IS HOLED UP WITH HIS TEAM IN A SECLUDED OFFICE IN WESTPORT CONN PLOTTING A COMEBACK ALTHOUGH THE CREATIVE BRAINPOWER AND DAZZLING COMPUTER MODELS HE COMMANDS ARE IN HOT DEMAND ON WALL STREET HE IS BASICALLY GROUNDED UNTIL HE CAN FIND ANOTHER AIG A POWERFUL FINANCIAL BACKER WITH A TOP CREDIT RATING SO HE IS SHOPPING HIS DERIVATIVES KNOWHOW IN SEARCH OF A NEW PARTNER CONSIDERING MR SOSIN'S HISTORY WHOEVER BACKS HIM CAN COUNT ON TWO THINGS MR SOSIN WILL MAKE A FORTUNE PUSHING THE OUTER LIMITS OF DERIVATIVES FRONTIERS AND HE WON'T SUBMIT GRACEFULLY TO AUTHORITY DERIVATIVES ARE FINANCIAL ARRANGEMENTS WHOSE RETURNS ARE LINKED TO OR DERIVED FROM THE PERFORMANCE OF SUCH THINGS AS INTEREST RATES CURRENCIES STOCKS OR COMMODITIES RELYING ON QUANTITATIVE INSIGHTS INTO SUCH NOTIONS AS PROBABILITY AND VOLATILITY DERIVATIVES HAVE GROWN INTO A MULTITRILLIONDOLLAR INDUSTRY THEY ARE REDEFINING HOW CORPORATIONS BANKS GOVERNMENTS AND OTHER BIG INSTITUTIONS MEASURE AND MANAGE RISK AND PROFIT FROM IT AT AIG AND EARLIER AT DREXEL BURNHAM LAMBERT MR SOSIN BECAME AN EARLY PRACTITIONER OF SWAPS AND OTHER DERIVATIVES CONTRACTS A SWAP IS AN AGREEMENT BETWEEN TWO PARTIES TO EXCHANGE SAY A FIXED INTEREST RATE FOR A FLOATING ONE TODAY THOSE TRANSACTIONS LOOK PRETTY STANDARD BUT THEY WERE NOVEL IN THE MID1980S SAYS RICHARD WHITING A DONALDSON LUFKIN & JENRETTE EXECUTIVE WHO WORKED WITH MR SOSIN AT DREXEL IN 1992 ALONE SOME 31 TRILLION OF NEW INTERESTRATE AND CURRENCYSWAPS CONTRACTS WERE ARRANGEDUP ALMOST SIXFOLD SINCE 1987 WHEN MR SOSIN OPENED SHOP AT AIG MR SOSIN'S MANAGEMENT STYLE IS TOTALLY UNRELAXED AND COMPULSIVELY HANDSON ASSOCIATES SAY HE DRIVES HIMSELF HARD MUCH LIKE HIS LATE FATHER WHO TAUGHT PHYSICS AT THE UNIVERSITY OF UTAH HIS FATHER WAS A WORKAHOLIC SAYS HIS MOTHER DOROTHY MAYBE THE GENE CAME THROUGH AT AIG FINANCIAL PRODUCTS MR SOSIN SWEATED OVER SUCH SEEMINGLY MUNDANE DETAILS AS THE TIMELINESS OF TRADE CONFIRMATIONS AND THE OFFICE RENOVATIONS INCLUDING THE INSTALLATION OF OPULENT MARBLE RESTROOMS BRAZILIAN WOOD PANELING AND A 50FOOT AQUARIUM FOR THE TRADING ROOM JUST AS INTENSE OUTSIDE THE OFFICE MR SOSIN THREW HIMSELF INTO THE CONSTRUCTION OF HIS CONNECTICUT MANSION HE MUST HAVE WANTED THE SHUTTERS PAINTED 60 DIFFERENT SHADES UNTIL HE FOUND A COLOR HE LIKED SAYS ROBERT SCINTO THE BUILDER WHETHER ON THE TENNIS COURT OR AT THE BRIDGE TABLE HIS COMPETITIVENESS NEVER WANES HE DELIGHTS IN CRUSHING OPPONENTS IT'S NEVER A SOCIAL GAME FOR HOWARD HE'S THERE TO WIN A LONGTIME ACQUAINTANCE SAYS MR SOSIN HAS NEVER GRANTED AN INTERVIEW AND DIDN'T FOR THIS ARTICLE AS HIS BUSINESS GREW AND RIVALS BEGAN TO MUSCLE IN ON THE TURF OF AIG FINANCIAL PRODUCTS MR SOSIN AND HIS TEAM ALWAYS MANAGED TO PUSH ON TO NEW TERRITORY THEY WERE ALWAYS DOING THINGS AN ORDER OF MAGNITUDE MORE COMPLICATED THAN EVERYONE ELSE SAYS A MANAGING DIRECTOR AT ONE LEADING SWAPS DEALER FOR INSTANCE WHEN MOST RIVALS SHUNNED SWAPS OF LONGER THAN 10 YEARS AS TOO RISKY MR SOSIN'S UNIT WAS ENGINEERING SWAPS OF UP TO 30 YEARS WITH COUNTERPARTIES SUCH AS THE STATE OF CONNECTICUT NEW JERSEY TURNPIKE AUTHORITY INTERNATIONAL BUSINESS MACHINES CORP SEARS ROEBUCK & CO AND BRITISH GAS PLC THE CUSTOMERS LIKED THE SWAPS BECAUSE THEY LOWERED THEIR LONGTERM FINANCING COSTS BUT FOR AIG THE SWAPS' VALUE DEPENDED ON SUCH UNKNOWABLES AS THE PATH OF INTEREST RATES DURING THE LIFE OF THE SWAP CORRELATIONS BETWEEN DIFFERENT INSTRUMENTS AND MARKETS AND THE COST AND QUALITY OF THE HEDGES ULTIMATELY VALUING THESE INSTRUMENTS REQUIRES MAKING CERTAIN ASSUMPTIONS ABOUT THE FUTURE SAYS WILLIAM SHARPE A NOBEL LAUREATE WHO COADVISED MR SOSIN'S DOCTORAL DISSERTATION AT STANFORD'S BUSINESS SCHOOL MOST DERIVATIVES DEALERS MINIMIZE THE UNCERTAINTIES BY HEDGING THEMSELVES WITH OFFSETTING TRANSACTIONS A TACTIC THAT LIMITS THEM MOSTLY TO SHORTERTERM DEALS BECAUSE THE 30YEAR SWAP MARKET IS SO THIN THAT OFFSETTING SWAPS ARE HARD TO FIND MR SOSIN RESORTED TO A COMPLEX TRADING MANEUVER KNOWN AS DYNAMIC HEDGING TO MANAGE THE RISKS THIS APPROACH CAN BE DICEY HOWEVER AND FEW DEALERS ATTEMPT IT ON LONGDATED DERIVATIVES THE HEDGING CHALLENGES ARE EXTRAORDINARY AT 30 YEARS SAYS WILLIAM BROEKSMIT MANAGING DIRECTOR IN CHARGE OF MERRILL LYNCH & CO'S ROUGHLY 200 BILLION USDOLLAR SWAP PORTFOLIO WE HAVEN'T DONE 30YEAR SWAPS THEY'RE TOO RISKY TO HELP MANAGE HIS DEALS MR SOSIN HAS SOME SELECT THEORETICIANS WHOM HE HAS CULTIVATED SINCE HIS UNIVERSITY DAYS AND WHO ARE WIDELY SEEN AS ONE OF THE SECRETS OF HIS SUCCESS AMONG THEM ARE ROBERT LITZENBERGER A FINANCE PROFESSOR AT THE WHARTON SCHOOL WHO COADVISED MR SOSIN'S DISSERTATION BARRY GOLDMAN A FORMER FINANCE PROFESSOR AT BERKELEY AND RANDALL RACKSON WHO USED TO COMANAGE FINANCIAL FUTURES AT CS FIRST BOSTON INC THE DERIVATIVES UNIT ALSO BENEFITED VASTLY FROM AIG'S TRIPLEA FINANCIAL BACKING WHICH ASSURED THE UNIT'S DERIVATIVES CLIENTS THAT IT COULD HONOR ITS COMMITMENTS IN RETURN FOR SUPPORTING THE DERIVATIVES SUBSIDIARY AND ULTIMATELY ASSUMING MOST OF ITS RISKS AIG RAKED IN ENORMOUS PROFITS AIG FINANCIAL PRODUCTS PRODUCED REVENUE OF 421 MILLION LAST YEAR AIG TOOK HOME 1715 MILLION AFTER EXPENSES AND BONUSES OR 8 OF ITS PRETAX PROFITMAKING THIS THE FASTESTGROWING SEGMENT OF THE INSURER'S BUSINESS IN 1992 MR SOSIN DIDN'T DO BADLY EITHER HIS PERSONAL PROFIT SHARE RUMORED TO HAVE BEEN 40 MILLION TO 50 MILLION LAST YEAR ALONE SUPPORTS A LAVISH LIFESTYLE HE HAS AMONG OTHER THINGS AN APARTMENT IN MANHATTAN A SKI HOUSE AT SNOWBIRD UTAH AND A HOME IN FAIRFIELD CONN THE FAIRFIELD PROPERTY WHERE MR SOSIN LIVES WITH HIS WIFE SUSAN AND THEIR THREE CHILDREN IS A FIVESTORY MANSION KNOWN LOCALLY AS THE CASTLE IT BOASTS AN ELEVATOR INDOOR AND OUTDOOR SWIMMING POOLS A SQUASH COURT AND AN ELABORATE SECURITY SYSTEM INCLUDING METAL GATES AND A GUARD AT THE END OF THE DRIVEWAY THE ESTATE COST 5 MILLION PAID FOR IN CASH THAT'S A LONG WAY FROM WHERE HE GREW UP HE USED TO TALK WHAT IT WAS LIKE TO GROW UP JEWISH IN HEAVILY MORMON SALT LAKE CITY HOW HE'D HANG OUT WITH THE CATHOLICS AND EPISCOPALIANS BECAUSE THEY WERE ALL MINORITIES TOGETHER ONE LONGTIME ASSOCIATE SAYS MR SOSIN HAS FEW FRIENDS OUTSIDE THE TIGHT CLIQUE OF EXPERTS WHO WORK FOR HIM FORMER SUBORDINATES DESCRIBE HIM AS A COLD FISH RELATING HOW WHEN THEY TRIED TO TALK TO HIM HE WOULD LOOK AT THE FLOOR THE CEILING OR A COMPUTER SCREEN TO AVOID EYE CONTACT ONCE WHEN MODERATING AT AN ACADEMIC CONFERENCE MR SOSIN AND MR GOLDMAN SO SAVAGED THE PRESENTATION OF AN OLDER HARVARD PROFESSOR THAT THE AUDIENCE WAS STUNNED UNLIKE RIVAL DERIVATIVES PLAYERS MR SOSIN OPERATED LARGELY BEYOND HIS PARENT COMPANY'S REACH NOT TO MENTION THAT OF OUTSIDE REGULATORS UNTIL A FEW YEARS AGO IN FACT ALL DERIVATIVES DEALERS WERE ESSENTIALLY UNREGULATED BECAUSE SWAPS AND OTHER PRIVATELY TRADED DERIVATIVES WEREN'T REPORTED IN ANYONE'S FINANCIAL STATEMENTS BUT THE GROWTH OF THE BUSINESS AND THE FACT THAT HUGE SUMS MAY BE RIDING ON UNTRIED ASSUMPTIONS HAVE REGULATORS WORRIED ABOUT HOW WELL THE PLAYERS UNDERSTAND AND MANAGE THOSE RISKS UNDER MR SOSIN'S AGREEMENT WITH AIG HE WAS LARGELY UNRESTRICTED AS TO HIS CHOICE OF CUSTOMERS AND THE TERMS OF HIS DEALS HE AND HIS ASSOCIATES ALSO SET THE ASSUMPTIONS THAT DETERMINED THE VALUE OF THOSE DEALS WHICH IN TURN DETERMINED THE PROFITS WHAT'S MORE MR SOSIN AND HIS TEAM GOT A BIG SHARE OF THOSE PROFITS SAID TO HAVE RUN AS HIGH AS 45 TWO TO THREE TIMES THE TYPICAL SHARE IN THE BUSINESS IN SHORT THE ARRANGEMENT IN SHARP CONTRAST TO PRACTICES AT MOST DERIVATIVES DEALERS GAVE MR SOSIN NOT ONLY THE INCENTIVE BUT THE MEANS TO PURSUE UNUSUAL RISKS IN SEARCH OF BIG RETURNS IT IS UNCLEAR WHY MAURICE HANK GREENBERG AIG'S IRONFISTED CHAIRMAN AND LARGEST SHAREHOLDER ALLOWED MR SOSIN SUCH DISCRETION MR GREENBERG AND AIG DECLINE TO COMMENT AIG DID TRY TO BEAR DOWN ON MR SOSIN IN 1990 WHEN IT EXERCISED ITS RIGHT TO JETTISON THE INITIAL CONTRACT BUT ITS RESOLVE WANED WHEN MR SOSIN AND HIS ASSOCIATES THREATENED TO JUMP SHIP HOWEVER THE CONFRONTATION APPARENTLY HARDENED MR GREENBERG'S DESIRE TO SEIZE CONTROL HE BEGAN TO BUILD HIS OWN TEAM OF DERIVATIVES EXPERTS INCLUDING PETROS SABATACAKIS HIRED AWAY FROM CHEMICAL BANK TO TAKE OVER THE BUSINESS IF MR SOSIN QUIT THE LAST STRAW CAME WHEN SOME OF MR SOSIN'S DEALS STARTED GOING SOUR INSIDERS SAY MR SOSIN QUIT EARLIER THIS YEAR IN AUGUST AIG WROTE OFF 125 MILLION ITS LOSS DUE TO THE SUBSIDIARY'S PURCHASE OF A NOTE FROM TRIZEC A FINANCIALLY TROUBLED COMMERCIAL REALESTATE DEVELOPER CONTROLLED BY CANADA'S POWERFUL BRONFMAN FAMILY AIG FINANCIAL PRODUCTS ALSO HAS EXPOSURE TO OTHER TROUBLED BRONFMAN HOLDINGS INCLUDING HEES INTERNATIONAL BANCORP INSIDERS SAY THE SOSIN TEAM AT AIG FINANCIAL PRODUCTS WAS REPLACED BY THE NEW AIG GROUP LECTURING THE SUBSIDIARY'S NEW STAFF AFTER MR SOSIN LEFT MR GREENBERG EMPHASIZED THAT THE CHANGE REPRESENTS A NEW REGIME FOR THE SUBSIDIARY IN ONE TALK HE STRONGLY CRITICIZED GREED AND THE UNIT'S EXTRAVAGANT PERKS WITH POINTED REFERENCE TO ITS MARBLE RESTROOMS MR GREENBERG ISN'T THE FIRST MANAGER TO HAVE TROUBLE WITH MR SOSIN AT DREXEL MR SOSIN RAN THE SWAPS DIVISION AS A PRIVATE FIEFDOM MANAGERS SAY HE BUILT A SEPARATE COMPUTER NETWORK ISOLATED FROM THE REST OF THE COMPANY AND HE FORBADE ANY PERSONAL CONTACT BETWEEN OUTSIDERS AND HIS GROUP UNLESS HE HIMSELF WAS PRESENT HE BECAME NEARLY HYSTERICAL WHEN HIS SUPERIORS VIOLATED THE RULE THEY SAY HE HAD THE OUTSIDE WORLD UNDER CONTROL THE TRICK FOR HIM WAS HOW TO KEEP THE BUSINESS OUT OF MANAGEMENT'S HANDS ONE FORMER COLLEAGUE SAYS WHEN MR SOSIN JUMPED SHIP TO JOIN AIG SHORTLY AFTER RECEIVING A 3 MILLION BONUS FROM DREXEL IN 1986 HE ENTICED ALMOST THE ENTIRE DEPARTMENT TO JOIN HIM BEFORE DREXEL HE HAD A STORMY TIME WITH WILSHER PARTNERS A NEW YORK FUTURESTRADING PARTNERSHIP AND EVENTUALLY THE PERSONALITY CONFLICTS CONTRIBUTED TO HIS DEPARTURE IN A SCENARIO NOW BEING REPEATED WITH AIG MR SOSIN AND THE FIRM HAD TO BRING IN LAWYERS TO SETTLE THEIR BITTER QUARREL OVER HOW TO VALUE HIS SHARE IN THE BUSINESS HOWARD DOESN'T GO DOWN EASY A FORMER COLLEAGUE SAYS HE NEVER HAS AND NEVER WILL 9310270080 931027 LETTERS TO THE EDITOR A MEDIA KINGDOM BECAME AN EMPIRE YOUR SEPT 15 PAGEONE ARTICLE ON COX ENTERPRISES INC IS RICHLY DETAILED ON THE MEDIA COMPANY UNDER THE LEADERSHIP OF JAMES COX KENNEDY IT MENTIONS THE FOUNDING FATHER JAMES M COX AND HIS TWO DAUGHTERS WHO ARE SAID TO HAVE MONITORED THE COMPANY BUT AT THE SAME TIME GAVE A FORMER OFFICIAL A RELATIVELY FREE REIN THE ARTICLE NOTES THAT THE FAMILY MOVED THE HEADQUARTERS TO ATLANTA IN 1964 AND STATES THAT DURING THE NEXT THREE DECADES THE COMPANY WAS RUN ON A DAYBYDAY BASIS BY MOSTLY NONFAMILY EXECUTIVES AS A BIOGRAPHER OF THE LATE JAMES M COX JR I WAS DISMAYED NOT TO FIND ANY REFERENCE TO HIM IT WAS HE STARTING WORK IN 1929 ON THE DAYTON DAILY NEWS WHO NOT ONLY HELPED ADD NEWSPAPERS TO THE COX INTERESTS BUT ALSO EARLY MOVED INTO RADIO BOTH AM AND FM TELEVISION AND CABLE TV AFTER THE DEATH OF HIS FATHER IN 1957 HE BECAME THE HEAD OF COX ENTERPRISES AND TRANSFORMED WHAT HAD BEEN A NEWSPAPER KINGDOM INTO A MEDIA EMPIRE AND CONGLOMERATE 9310270079 931027 INTERNATIONAL CANADA'S NEWLY ELECTED LIBERAL PARTY IS BACKED BY NATION'S BUSINESS GROUPS BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADIAN BUSINESS GROUPS WELCOMED THE ELECTION OF A LIBERAL PARTY GOVERNMENT THAT HAS DISAVOWED ITS PAST FREEWHEELING TAXANDSPEND PRACTICES THE LIBERALS WON 60 OF THE SEATS IN THE HOUSE OF COMMONS MONDAY BRINGING THEM TO POWER IN PLACE OF THE PROGRESSIVE CONSERVATIVE PARTY THAT HAS RULED FOR NINE YEARS JOHN BULLOCH PRESIDENT OF THE CANADIAN FEDERATION OF INDEPENDENT BUSINESS SAID HE HAD NO CONCERNS THAT THE LIBERALS WOULD RETURN TO THEIR FREESPENDING WAYS OF THE 1970S AND EARLY 1980S MR BULLOCH SAID HE HAS KNOWN LIBERAL LEADER JEAN CHRETIEN FOR MORE THAN 20 YEARS AND CONSIDERS HIM TO BE A FISCAL CONSERVATIVE MR CHRETIEN WHO WILL TAKE OFFICE SOON AS PRIME MINISTER HAS PLEDGED TO REDUCE THE GOVERNMENT'S BUDGET DEFICIT TO 3 OF GROSS DOMESTIC PRODUCT WITHIN THREE YEARS LAST YEAR THE DEFICIT AMOUNTED TO 52 OF GDP WHICH IS THE TOTAL VALUE OF GOOD AND SERVICES PRODUCED THE COUNTRY MAUREEN FARROW CHIEF ECONOMIST AT COOPERS & LYBRAND CONSULTING GROUP IN CANADA SAID MR CHRETIEN MAY BE THE MOST EXPERIENCED POLITICIAN TO LEAD CANADA MR CHRETIEN WHO IS 59 YEARS OLD WAS FIRST ELECTED TO PARLIAMENT 30 YEARS AGO AND HAS HELD NINE CABINET POSTS SOME ECONOMISTS SAID THE LIBERAL FISCAL PLAN DOESN'T DIFFER SIGNIFICANTLY FROM THAT OF THE CONSERVATIVES WHO SUFFERED THEIR WORST ELECTION DEFEAT RETAINING ONLY TWO SEATS IN THE 295SEAT HOUSE OF COMMONS MR CHRETIEN WAS ABLE TO REASSURE WESTERN CANADIANS THAT A LIBERAL GOVERNMENT WOULDN'T ATTEMPT TO REIMPOSE REGULATIONS ON THE OIL AND GAS INDUSTRY UNTIL THIS ELECTION WHEN THEY TOOK FOUR SEATS IN ALBERTA THE LIBERALS HADN'T BEEN ABLE TO WIN ANY REPRESENTATION IN THE PROVINCE IN RECENT YEARS BECAUSE OF BITTERNESS OVER PRICE AND PROFIT REGULATIONS IMPOSED ON THE OIL INDUSTRY BY A LIBERAL GOVERNMENT IN 1980 WE THINK MR CHRETIEN UNDERSTANDS THE ENERGY INDUSTRY IS FITTING IN WELL WITH HIS MAJOR PLATFORM OF JOB CREATION SAID MYRON KANIK PRESIDENT OF THE CANADIAN ENERGY PIPELINE ASSOCIATION CANADIAN STOCKS CLOSED HIGHER FOLLOWING THE LIBERAL PARTY'S VICTORY BUT THE CANADIAN DOLLAR AFTER AN INITIAL ADVANCE MONDAY NIGHT FELL BACK YESTERDAY CLOSING IN TORONTO AT 7593 US CENTS OFF FROM 7618 CENTS THE CANADIAN DOLLAR'S DECLINE WAS ATTRIBUTED TO CONCERN OVER THE BLOC QUEBECOIS'S CAPTURE OF 54 OF QUEBEC'S 75 SEATS THE BLOC ADVOCATES THE SEPARATION OF QUEBEC FROM CANADA SHERRY COOPER CHIEF ECONOMIST AT THE TORONTO SECURITIES COMPANY OF BURNS FRY LTD SAID A LARGE PROPORTION OF THE QUEBEC POPULATION THAT VOTED FOR THE BLOC IS UNLIKELY TO FAVOR SEPARATION FROM CANADA MUCH OF THE BLOC'S SUPPORT WAS A PROTEST AGAINST THE POLICIES OF THE TRADITIONAL POLITICAL PARTIES SHE SAID THOMAS D'AQUINO PRESIDENT OF THE BUSINESS COUNCIL ON NATIONAL ISSUES WHICH REPRESENTS THE CHIEF EXECUTIVES OF 150 MAJOR COMPANIES SAID QUEBEC'S FUTURE PLACE IN CANADA WILL BE DECIDED NOT BY ITS MEMBERS OF PARLIAMENT IN OTTAWA BUT BY THE QUEBEC ELECTORATE ITSELF IN 1994 OR THEREAFTER MR D'AQUINO SAID THE LIBERALS CONDUCTED AN IMPRESSIVE CAMPAIGN IN WHICH THEY ADDRESSED MANY OF THE ISSUES THAT BUSINESSPEOPLE CARE MOST DEEPLY ABOUT TAMSIN CARLISLE CONTRIBUTED TO THIS ARTICLE 9310270078 931027 BROADCASTING PARAMOUNT CHRISCRAFT TO CREATE A FIFTH NETWORK BY LAURA LANDRO AND KEVIN GOLDMAN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK A FIFTH BROADCAST NETWORK IS ONE STEP CLOSER TO REALITY PARAMOUNT COMMUNICATIONS INC AND CHRISCRAFT INDUSTRIES INC SAID THEY WOULD USE THEIR COMBINED TV STATIONS AND PARAMOUNT'S PROGRAMMING MUSCLE TO LAUNCH THE PARAMOUNT NETWORK IN JANUARY 1995 THE ANNOUNCEMENT ADDS A NEW DIMENSION TO THE TAKEOVER BATTLE FOR PARAMOUNT WHICH IS TRYING TO COMPLETE A MERGER WITH VIACOM INC WHILE FENDING OFF A HOSTILE BID FROM QVC NETWORK INC AS THE ENTERTAINMENT INDUSTRY BRACES FOR THE 500CHANNEL WORLD OF THE FUTURE HOLLYWOOD PRODUCERS AND TV STATION OWNERS SUCH AS PARAMOUNT AND CHRISCRAFT ARE TRYING TO STAKE OUT POSITIONS FOR THEMSELVES IN PROGRAMMING AND DISTRIBUTION NO FIFTH NETWORK CAN HOPE TO HAVE THE REACH OF THE MAJOR BROADCAST NETWORKS CBS ABC AND NBC BUT LIKE NEWS CORP'S FOX INC UNIT WHICH LAUNCHED THE FOURTH BROADCAST NETWORK IN 1986 STUDIOS AND BROADCASTERS HOPE TO FORM AD HOC NETWORKS OFFERING PROGRAMS THAT ATTRACT A MASS AUDIENCE AND NATIONAL ADVERTISERS THE HURDLES ARE FORMIDABLE PARAMOUNT AND CHRISCRAFT ARE STARTING OFF MODESTLY WITH FOUR HOURS OF PROGRAMMING OVER TWO NIGHTS FEATURING ANOTHER SPINOFF FROM PARAMOUNT'S SUCCESSFUL STAR TREK SERIES BUT FOX STARTED WITH AFFILIATES REACHING 76 OF THE NATION TOGETHER THE SIX INDEPENDENT STATIONS OWNED BY CHRISCRAFT AND THE FOUR INDEPENDENT STATIONS OWNED BY PARAMOUNT THAT WILL FORM THE CORE OF THE PARAMOUNT NETWORK REACH ONLY ABOUT 27 OF US TV HOMES TO LURE BIG ADVERTISERS THEY MUST REACH MORE THAN 70 WHICH THEY CAN DO BY SIGNING UP INDEPENDENT STATION AFFILIATES TIME WARNER INC WHICH WAS ITSELF NEGOTIATING WITH CHRISCRAFT AND IS NOW EXPECTED TO ANNOUNCE A NEW NETWORK IN PARTNERSHIP WITH TRIBUNE CO'S BROADCASTING UNIT IS EXPECTED TO GO AFTER THE SAME STATIONS AND ADVERTISERS AS PARAMOUNT AND OFFER A HEAD START BY LAUNCHING ITS PROGRAM NETWORK IN THE SUMMER OF 1994 EVERYONE IS RUSHING TO SET UP A FIFTH NETWORK AND IF YOU DON'T THROW YOUR HAT IN THE RING YOU LOSE A LITTLE MOMENTUM SAYS JOHN TINKER AN ANALYST WITH FURMAN SELZ INC RICHARD A KURLANDER VICE PRESIDENT AND DIRECTOR OF PROGRAMMING AT PETRY COMMUNICATIONS WHICH PURCHASES SHOWS FOR TELEVISION STATIONS SAYS IT SEEMS ILLOGICAL THAT THERE IS ROOM FOR TWO MORE NETWORKS THERE AREN'T THAT MANY INDEPENDENT TELEVISION STATIONS AROUND HE NOTES A FIFTH NETWORK IS ENTIRELY POSSIBLE HE SAYS BUT A SIXTH NETWORK I DON'T SEE HOW THIS WILL HAPPEN QVC CHAIRMAN BARRY DILLER CREDITED WITH THE SUCCESS OF FOX'S NETWORK BEGAN PUTTING TOGETHER PLANS FOR ANOTHER PROGRAMMING NETWORK EVEN BEFORE HIS BID FOR PARAMOUNT MR DILLER HAS INDICATED THAT IF HE WINS PARAMOUNT HE WOULD SELL ITS TV STATIONS AND LAUNCH A NETWORK TO OTHER DISTRIBUTION OUTLETS USING PARAMOUNT PROGRAMMING YESTERDAY MR DILLER SAID THE ISSUE IS NOT WHAT NUMBER THE NETWORK IS THE ISSUE IS THE IDEA MY FEELING IS THE WORLD DOES NOT NEED ANOTHER GENERIC BROADCAST NETWORK AND THE IDEAS MY COMPANY HAS BEEN WORKING ON DEAL WITH DEVELOPING SOMETHING THAT CAN BECOME A DEFINED RECOGNIZABLE NEW BRAND PARAMOUNT'S DEAL WITH CHRISCRAFT WAS APPROVED BY VIACOM BUT ISN'T CONDITIONED ON THE MERGER A PARAMOUNT SPOKESMAN SAID A CHANGE IN CONTROL OF PARAMOUNT WOULDN'T AFFECT THE AGREEMENT ANALYSTS NOTE THAT FROM CHRISCRAFT'S POINT OF VIEW IT'S A WINWIN SITUATION IT WILL GET ACCESS TO PARAMOUNT'S PROGRAMMING IN ANY OUTCOME AND IF MR DILLER WINS THE BATTLE CHRISCRAFT GAINS A PARTNER WHO HAS ALREADY SUCCESSFULY CREATED A NEW NETWORK AT PRESENT GENERAL ELECTRIC CO'S NBC CAPITAL CITIES/ABC INC AND CBS INC EACH HAVE MORE THAN 200 AFFILIATES INCLUDING THEIR OWN STATIONS AND OFFER A FULL SCHEDULE OF DAYTIME PRIMETIME AND LATENIGHT PROGRAMMING THAT REACH 98 OF ALL TV HOUSEHOLDS FOX BY CONTRAST HAS 140 AFFILIATES REACHING 95 OF THE COUNTRY INCLUDING ITS OWN EIGHT STATIONS BUT THAT OFFER ONLY PRIMETIME PROGRAMS AND SOME AFTERNOON CHILDREN'S SHOWS THERE ARE ALSO ABOUT 280 INDEPENDENT STATIONS THE TARGET AFFILIATES FOR ANY NEW NETWORK KERRY MCCLUGGAGE CHAIRMAN OF PARAMOUNT TELEVISION GROUP MAINTAINS THAT OVER TIME THERE IS PROBABLY ROOM FOR FIVE FULLSERVICE NETWORKS HE SAYS PARAMOUNT AND CHRISCRAFT EXPECT TO LINE UP STATIONS COVERING 70 OF THE COUNTRY BUT HE ADDS THAT THEY WILL AUGMENT THAT AUDIENCE BY OTHER METHODS SUCH AS LINKING WITH LARGE CABLE SYSTEMS MR MCCLUGGAGE SAYS THE BIG SELLING POINT FOR LINKING UP WITH THE PARAMOUNT NETWORK IS THE STRONG FRANCHISE OF STAR TREK PARAMOUNT ALREADY PRODUCES TWO HIGHLY SUCCESSFUL SHOWS THAT IT SELLS DIRECTLY TO TELEVISION STATIONS STAR TREK THE NEXT GENERATION AND STAR TREK DEEP SPACE NINE THE SERIES FOR THE NEW NETWORK WOULD BE CALLED STAR TREK VOYAGER AND WOULD FEATURE NEW CHARACTERS AND SETTINGS IN AN HOURLONG ACTIONADVENTURE FORMAT ONE RISK ACCORDING TO FURMAN SELZ'S MR TINKER THE AUDIENCE FOR STAR TREK MAY BE SOMEWHAT SATURATED AND SOME CRITICS SAY PARAMOUNT MAY BE DOING TOO LITLE TOO LATE PARAMOUNT HAS LONG BEEN A SUCCESSFUL PRODUCER OF PROGRAMS FOR DIRECT SALE TO TELEVISION STATIONS INCLUDING ENTERTAINMENT TONIGHT THE UNTOUCHABLES AND THE ARSENIO HALL SHOW WITH ITS OWN TV STATIONS THE COMPANY WAS IN THE SAME POSITION AS FOX TO LAUNCH A FOURTH NETWORK IN THE MID1980S BUT DECIDED IT WAS TOO RISKY BUT PARAMOUNT HAS A POWERFUL PARTNER NOW IN CHRISCRAFT WHOSE 70OWNED SUBSIDIARY BHC COMMUNICATIONS INC OWNS OR CONTROLS EIGHT STATIONS INCLUDING INDEPENDENTS IN THE PIVOTAL NEW YORK AND LOS ANGELES MARKETS THAT WILL ANCHOR THE NEW PARAMOUNT NETWORK TWO OF THE CHRISCRAFT STATIONS ARE AFFILIATED WITH THE ABC AND NBC NETWORKS AND THREE OF PARAMOUNT'S SEVEN STATIONS ARE FOX NETWORK AFFILIATES AND IF PARAMOUNT MISSED THE BOAT THE FIRST TIME AROUND IT CAN'T AFFORD TO NOW PARAMOUNT AND OTHER STUDIOS HAVE LONG PRODUCED PROGRAMS FOR THE MAJOR NETWORKS THEN MADE HEFTY PROFITS BY SELLING THE RERUNS BUT INCREASINGLY NETWORKS ARE PRODUCING THEIR OWN PROGRAMMING AND A CHANGE IN FEDERAL REGULATIONS WILL SOON ALLOW NETWORKS TO PRODUCE AND OWN EVEN MORE PROGRAMS BY STARTING ITS OWN NETWORK AND CONTROLLING THE DISTRIBUTION PARAMOUNT CAN LESSEN ITS RELIANCE ON SUPPLYING ABC CBS NBC AND FOX FROM AN ADVERTISING STANDPOINT PARAMOUNT AND WARNER ARE AFTER THE SAME PIECE OF A PIE THAT ISN'T GROWING ON THE BASIS OF AD SPENDING THIS IS NOT A LOGICAL MOVE SAYS HAROLD VOGEL AN ANALYST AT MERRILL LYNCH BUT THIS IS MORE ABOUT LOCKING IN DISTRIBUTION AND ON THAT BASIS IT IS LOGICAL WARNER DECLINED COMMENT ON ITS PLANS BUT DENNIS FITZSIMMONS PRESIDENT OF TRIBUNE TELEVISION SAID WE THINK VERY HIGHLY OF THE PLAN WARNER HAS PUT TOGETHER WE'RE HAVING ONGOING CONVERSATIONS WITH THEM TRIBUNE HAS SEVEN STATIONS REACHING ABOUT 22 OF THE COUNTRY AND THE PARTNERS HAVE BEEN MAKING THE ROUNDS OF OTHER STATION OWNERS TO SIGN UP AFFILIATES WARNER ALSO HAS IN ITS CAMP JAMIE KELLNER THE FORMER PRESIDENT OF FOX BROADCASTING CO UNDER MR DILLER MR KELLNER JOINED WARNER AS A CONSULTANT FOUR MONTHS AGO ED TRIMBLE VICE PRESIDENT OF THE TELEVISION STATIONS DIVISION AT GAYLORD COMMUNICATIONS INC SAYS HIS COMPANY IS VERY INTERESTED IN AFFILIATING ITS THREE STATIONS COVERING 5 OF THE COUNTRY WITH WARNER JIM CURTIN VICE PRESIDENT AND DIRECTOR OF PROGRAMMING AT HRP INC WHICH PURCHASES SHOWS FOR TELEVISION STATIONS SAID THAT LINING UP OTHER MEDIUMSIZE MARKET STATION OWNERS IS THE KEY TO SUCCESS FOR BOTH PARAMOUNT AND WARNER IF YOU CAN'T GET UP TO AT LEAST 70 COVERAGE OF THE COUNTRY THEN YOU'LL NEVER GET THE RETURN ON THE INVESTMENT OF PRODUCING EXPENSIVE PRIME TIME TELEVISION SHOWS HE ADDS 9310270077 931027 WHO'S NEWS VISA'S RUSSELL IS EXPECTED TO ANNOUNCE PLANS TO LEAVE CREDITCARD ORGANIZATION BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL CHARLES RUSSELL THE LONGTIME PRESIDENT AND CHIEF EXECUTIVE OF VISA INTERNATIONAL WHO HELPED DEVELOP THE CREDITCARD INDUSTRY PLANS TO ANNOUNCE HIS RETIREMENT TODAY PEOPLE FAMILIAR WITH HIS PLANS SAID EDMUND JENSEN VICE CHAIRMAN AND CHIEF OPERATING OFFICER OF US BANCORP AND A VISA BOARD MEMBER IS EXPECTED TO SUCCEED THE 63YEAROLD MR RUSSELL IN JANUARY A SPOKESMAN FOR VISA HAD NO COMMENT AND A SPOKESMAN FOR US BANCORP IN PORTLAND ORE WOULD NEITHER CONFIRM NOR DENY THAT MR JENSEN 56 WOULD BE NAMED VISA'S CHIEF EXECUTIVE THE MOVES WOULD CAP A SERIES OF UNEXPECTED CHANGES AT SAN FRANCISCOBASED VISA IN RECENT MONTHS H ROBERT HELLER PRESIDENT AND CHIEF EXECUTIVE OF VISA USA ONE OF FIVE REGIONAL ASSOCIATIONS UNDER VISA INTERNATIONAL RESIGNED SUDDENLY NEARLY TWO MONTHS AGO TO PURSUE OTHER INTERESTS MR HELLER A FORMER FEDERAL RESERVE GOVERNOR HAD BEEN EXPECTED TO SUCCEED MR RUSSELL MR HELLER WAS SUCCEEDED AT VISA US A BY CARL PASCARELLA 50 HEAD OF VISA'S ASIAN OPERATIONS MR PASCARELLA REPORTS TO THE BOARD OF VISA USA OF WHICH MR RUSSELL WAS A MEMBER BUT MR RUSSELL WAS THE LEADER AND FOUNDING FATHER OF ALL OF THE VISA ASSOCIATIONS MR RUSSELL HAS BEEN IN HIS CURRENT POSITION SINCE 1984 AND HAS BEEN WITH THE COMPANY SINCE 1971 HE TOLD A BANKING CONFERENCE RECENTLY THAT NO ONE SHOULD SERVE AS CEO OF A CORPORATION FOR MORE THAN 10 YEARS ALONG WITH A HANDFUL OF OTHER EXECUTIVES MR RUSSELL IS CREDITED WITH THE DEVELOPMENT OF THE CREDITCARD MARKET INDUSTRY OBSERVERS SAY IN THE EARLY 1970S MR RUSSELL AND A FEW OTHER EXECUTIVES TURNED THE OLD BANKAMERICARD INTO A FRANCHISE LICENSED BY MANY OTHER BANKS AT THE TIME MASTERCHARGE HAD A BIG LEADER IN MARKET SHARE VISA NOW DOMINATES WITH A 60 MARKET SHARE COMPARED WITH 40 FOR MASTERCARD MR RUSSELL ALSO IS CREDITED WITH VISA'S DEVELOPMENT OVERSEAS AS WELL AS THE MOVE TO BILL ELECTRONICALLY HE'S ONE OF THREE PEOPLE ALIVE TODAY WHO DID THE MOST FOR THE ENTIRE CREDITCARD INDUSTRY SAID SPENCER NILSON PUBLISHER OF THE NILSON REPORT A CREDITCARD INDUSTRY NEWSLETTER SOME PEOPLE SPECULATED THAT THE SERIES OF CHANGES REVOLVE AROUND DISENCHANTMENT WITH MR HELLER'S LEADERSHIP ONE EXECUTIVE AT A BANK WHO SITS ON THE VISA US A BOARD SAID DIRECTORS WERE DISSATISFIED WITH MR HELLER'S TENURE IN A RECENT INTERVIEW MR RUSSELL DENIED THAT MR HELLER WAS FORCED TO RESIGN BUT HE ADMITTED THAT SOME PEOPLE MAY HAVE BEEN UNHAPPY WITH MR HELLER MR HELLER COULDN'T BE REACHED FOR COMMENT 9310270076 931027 BELLSOUTH CONSIDERING MAKING SOLO BID FOR PARAMOUNT ANALYSTS ARE SKEPTICAL BY RANDALL SMITH AND ANITA SHARPE STAFF REPORTERS OF THE WALL STREET JOURNAL BELLSOUTH CORP WHICH ATTEMPTED TO JOIN FORCES WITH BOTH RIVAL BIDDERS FOR PARAMOUNT COMMUNICATIONS INC IS CONSIDERING MAKING A SOLO BID FOR PARAMOUNT AND REMAINS A WILD CARD IN THE ALREADY TUMULTUOUS TAKEOVER BATTLE MANY INDUSTRY ANALYSTS ARE SKEPTICAL THAT BELLSOUTH THE LARGEST OF THE SEVEN REGIONAL BELL OPERATING COMPANIES AND VIEWED AS ONE OF THE MOST CONSERVATIVE WOULD MAKE SUCH A BOLD MOVE ONE PERSON FAMILIAR WITH THE ATLANTABASED COMPANY'S PLANNING SAID BELLSOUTH IS LOOKING AT ALL SORTS OF THINGS INCLUDING BIDDING FOR PARAMOUNT OR SEEKING TO ACQUIRE MORE CABLE TV ASSETS ANOTHER PERSON SAID BELLSOUTH WAS EXPLORING FINANCING SCENARIOS FOR A PARAMOUNT BID AS RECENTLY AS YESTERDAY HOWEVER THE TIMING OF BELLSOUTH'S CONSIDERATION IS GROWING CRITICAL BECAUSE VIACOM INC WHICH HAS A FRIENDLY MERGER AGREEMENT WITH PARAMOUNT BEGAN AN 80ASHARE CASH TENDER OFFER FOR 51 OF PARAMOUNT'S STOCK ON MONDAY QVC NETWORK INC IS BEGINNING A SIMILAR 80ASHARE OFFER TODAY ON A HOSTILE BASIS POSTPONING FOR NOW A DECISION ON MAKING AN INCREASE IN ITS OFFER THAT APPEARS TO BE NECESSARY TO PREVAIL AGAINST VIACOM QVC'S OFFER SPECIFIED THAT TERMS MIGHT BE CHANGED THE POSSIBILITY OF A BID BY BELLSOUTH FOR PARAMOUNT SEEMS DISTINCTLY LESS FARFETCHED THAN IT DID TWO WEEKS AGO BEFORE BELL ATLANTIC CORP AGREED TO ACQUIRE TELECOMMUNICATIONS INC THE NATION'S LARGEST CABLE TV SYSTEM OPERATOR IN A PLAN CALLING FOR THE ISSUANCE OF MORE THAN 20 BILLION WORTH OF BELL ATLANTIC STOCK ONE REASON BELLSOUTH COULDN'T COME TO TERMS ON JOINING VIACOM OR QVC IS THAT BELLSOUTH WANTED TO BE A SUBSTANTIAL PARTNER IN THE BID INSTEAD OF A PASSIVE INVESTOR IN THE COURSE OF THOSE TALKS BELLSOUTH THREATENED TO MAKE A BID ON ITS OWN BUT THAT THREAT WAS VIEWED AS POSTURING AND WASN'T TAKEN SERIOUSLY BY THE BIDDERS PARTLY BECAUSE OF HOW SUCH AN ACQUISITION WOULD LOOK TO BELLSOUTH'S REGULATORS BUT NOW HOWEVER VIACOM HAS TAKEN ON ANOTHER BABY BELL NYNEX CORP AS A PASSIVE INVESTOR AND QVC HAS A TIE WITH BELL ATLANTIC BECAUSE TCI HAS A STAKE IN QVC THROUGH ITS PROGAMMING AFFILIATE LIBERTY MEDIA CORP WHICH TCI PLANS TO ACQUIRE BEFORE THE BELL ATLANTIC MERGER IS COMPLETED THAT HAS LEFT BELLSOUTH STILL ANXIOUS TO ACQUIRE ENTERTAINMENT PROGAMMING FOR ITS GROWING TELEPHONE AND CABLE NETWORK WITH 1992 REVENUE OF 152 BILLION DEBT OF 97 BILLION AND A STOCK MARKET VALUE OF ROUGHLY 30 BILLION BELLSOUTH WOULD APPEAR TO BE ABLE TO SWALLOW PARAMOUNT EASILY BELLSOUTH SET THE STAGE EARLIER THIS MONTH FOR A MORE AGGRESSIVE PUSH INTO ENTERTAINMENT BY AGREEING TO ACQUIRE 225 OF PRIME MANAGEMENT INC KNOWN AS PRIME CABLE WHICH HAS ABOUT 500000 CABLE SUBSCRIBERS BELLSOUTH ALSO AGREED TO HELP RECAPITALIZE COMMUNITY CABLE TELEVISION A LAS VEGASBASED CABLE OPERATOR PARTLY OWNED BY PRIME AS PART OF THE DEAL BELLSOUTH OBTAINED OPTIONS TO BUY ALL OR PART OF BOTH COMPANIES BUT WHILE OTHER BABY BELLS ARE LOOKING TO NEW BUSINESSES BECAUSE OF SLOW GROWTH IN THEIR HOME MARKETS BELLSOUTH HAS ONE OF THE MORE COVETED CORE BUSINESSES WITH ITS SUNBELT MARKETS IN ALABAMA FLORIDA GEORGIA KENTUCKY LOUISIANA MISSISSIPPI NORTH AND SOUTH CAROLINA AND TENNESSEE SHOWING STRONG GROWTH IN NEW TELEPHONE LINES ALSO EVEN IF BELLSOUTH EMERGED AS THE OWNER OF PARAMOUNT CURRENT RESTRICTIONS WOULD SEVERELY LIMIT ITS ABILITY TO USE THE STUDIO'S AMPLE PROGRAMMING ASSETS THE REGIONAL BELLS CAN'T TRANSMIT VIDEO PROGRAMMING TO THEIR OWN SERVICE AREAS EXCEPT FOR BELL ATLANTIC WHICH WON THAT RIGHT BY CHALLENGING THE 1984 CABLE ACT IN FEDERAL COURT IF BELLSOUTH CAN'T OVERCOME THAT RESTRICTION IT MIGHT HAVE TO BUY CABLE SYSTEMS OUTSIDE ITS SERVICE AREA AS AN OUTLET FOR PARAMOUNT PROGAMMING THE START OF QVC'S BID TRAILS A SIMILAR 80ASHARE OFFER BY VIACOM BY TWO DAYS A TIMING GAP THAT COULD WIDEN IF QVC ENCOUNTERS ANY ROADBLOCKS IN GAINING ANTITRUST CLEARANCE WHICH VIACOM HAS ALREADY OBTAINED QVC STOCK ROSE YESTERDAY AND VIACOM'S FELL AS MORE TRADERS CONCLUDED THAT VIACOM IS LIKELIER TO COMPLETE THE ACQUISITION DILUTING THE NUMBER OF ITS SHARES OUTSTANDING UNLESS QVC MAKES A STRONG INCREASE IN THE AMOUNT OF ITS OFFER BOTH QVC AND VIACOM ARE OFFERING THEIR OWN STOCK FOR THE REMAINING 49 OF PARAMOUNT BASED ON THEIR STOCK PRICES YESTERDAY QVC'S TWOTIER OFFER WAS WORTH 99 BILION OR 7963 A SHARE SLIGHTLY MORE THAN THE VIACOM OFFER'S VALUE OF 98 BILLION OR 7870 A SHARE PARAMOUNT SHARES CLOSED AT 79 A SHARE UNCHANGED ON VOLUME OF 22 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE 9310270074 931027 BUSINESS BRIEF CANADIAN NATIONAL RAILWAYS US UNIT IS SELLING ASSETS OF CENTRAL VERMONT RAILWAY CANADIAN NATIONAL RAILWAYS MONTREAL SAID ITS US UNIT GRAND TRUNK CORP IS OFFERING TO SELL THE ASSETS OF CENTRAL VERMONT RAILWAY A MANAGEMENTLED EMPLOYEE STOCKOWNERSHIP PLAN AT CENTRAL VERMONT HAS BID FOR THE ASSETS AND MORE BIDDERS WILL BE SOUGHT SAID CANADIAN NATIONAL WHICH IS OWNED BY THE CANADIAN GOVERNMENT TERMS OF THE EMPLOYEE OFFER WEREN'T DISCLOSED NOR HAS CANADIAN NATIONAL PUBLICLY SET A PRICE CENTRAL VERMONT GENERATES ABOUT 20 MILLION IN ANNUAL REVENUE ITS 325MILE LINE RUNS FROM THE QUEBEC BORDER TO NEW LONDON CONN AND IS USED BY FREIGHT AND PASSENGER TRAINS THE MOVE IS PART OF CANADIAN NATIONAL'S EFFORT TO SELL LINE SEGMENTS TO REGIONAL AND SHORTLINE CARRIERS IN CANADA AND THE US WHILE FORGING MARKETING ARRANGEMENTS WITH THE NEW OPERATORS 9310270073 931027 WHO'S NEWS GM'S HUGHES AIRCRAFT NAMES SD DORFMAN SENIOR VICE PRESIDENT LOS ANGELES STEVEN D DORFMAN 58 YEARS OLD WAS NAMED A SENIOR VICE PRESIDENT OF THE HUGHES AIRCRAFT CO UNIT OF GENERAL MOTORS CORP HE ALSO WAS NAMED PRESIDENT OF HUGHES'S TELECOMMUNICATIONS AND SPACE SECTOR AND HE WILL SERVE AMONG OTHER SENIOR DECISION MAKERS IN THE OFFICE OF THE CHAIRMAN MR DORFMAN SUCCEEDS ANTHONY J IORILLO WHO RETIRED AS PRESIDENT OF THE TELECOMMUNICATIONS SECTOR AND WHO PLANS TO RETIRE FROM THE OTHER DUTIES EARLY IN 1994 UNTIL THEN HE WILL OVERSEE HUGHES DIRECTV SATELLITEDIRECT TELEVISION BUSINESS AND OTHER SELECTED OPERATIONS MR IORILLO 55 NURTURED THE COMPANY'S HIGHLY SUCCESSFUL SATELLITE BUSINESS DURING HIS 34 YEARS WITH HUGHES AND WAS A CANDIDATE TO LEAD THE COMPANY UNTIL FORMER INTERNATIONAL BUSINESS MACHINES CORP EXECUTIVE MICHAEL ARMSTRONG WAS NAMED CHAIRMAN OF HUGHES IN 1992 MR IORILLO SAID IN AN INTERVIEW THAT HE IS RETIRING TO PURSUE OTHER INTERESTS INCLUDING PLAYING THE TRUMPET HE ACKNOWLEDGED THAT HE PROBABLY WOULDN'T BE RETIRING IF HE HAD BEEN NAMED CHAIRMAN BUT SAID THE QUESTION IS HYPOTHETICAL AND WITH HIS EXIT THE RIGHT PEOPLE ARE IN THE RIGHT JOBS MR DORFMAN ANOTHER LONGTIME EXECUTIVE AND ENGINEER HAS SERVED AS PRESIDENT OF SPACE AND COMMUNICATIONS PRODUCTS AND AS A CORPORATE VICE PRESIDENT SINCE 1986 HE WILL BE SUCCEEDED IN THAT JOB BY DONALD L CROMER 57 A FORMER AIR FORCE LIEUTENANT GENERAL 9310270072 931027 BUSINESS BRIEF CARNIVAL CORP STATE SUIT SEEKS 400 MILLION IN DAMAGES FROM METRA OY CARNIVAL CORP MIAMI SAID IT IS SEEKING 400 MILLION IN DAMAGES FROM A FINNISH COMPANY IN A DISPUTE OVER THREE CRUISE SHIPS THAT WERE TO BE BUILT FOR CARNIVAL IN A SUIT FILED IN A DADE COUNTY FLA CIRCUIT COURT CARNIVAL ALLEGES THAT METRA OY THE CONTROLLING SHAREHOLDER OF A SHIPYARD THAT CONTRACTED TO BUILD THE SHIPS IN 1987 MISREPRESENTED THE FINANCIAL CONDITION OF THE YARD ACCORDING TO CARNIVAL THE SHIPYARD FILED BANKRUPTCY PAPERS IN 1989 WITHOUT COMPLETING ANY OF THE VESSELS CARNIVAL SAID IT SUFFERED DAMAGES BECAUSE OF LOST BOOKINGS FROM DELAY AND HIGHER PRICES ON THE SHIPS COMPLETED LATER BY THIRD PARTIES METRA OY OFFICIALS COULDN'T BE REACHED IMMEDIATELY FOR COMMENT CARNIVAL FIRST SUED IN FEDERAL COURT IN 1990 BUT A US JUDGE LAST WEEK DISMISSED THE CASE RULING THAT FINNISH COURTS WOULD BE A MORE CONVENIENT FORUM FOR LITIGATION 9310270071 931027 PEPPERAND SALT WHERE ONLY ANGELS DARE TO TREAD THIS PRECEDENT WE LOUDLY HAIL IF ALL ADS RAN IN OUTER SPACE THE BIGGEST PROBLEM IS THAT CANDIDATES HAVE TO PASS THEIR HAT AROUND BEFORE TOSSING IT INTO THE RING 9310270070 931027 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL FREQUENT FLIGHTS OF FANCY ARE SAFE FROM DISCLOSURE TO THE IRS BY AN AIRLINE FREE PLANE TICKETS EARNED WITH CREDITS FOR DEDUCTIBLE BUSINESS TRAVEL ARE TAXABLE IF USED FOR PERSONAL TRAVEL EXPERTS AGREE YET THE IRS STILL HASN'T TARGETED THIS UNREPORTED INCOME BECAUSE THE AGENCY IS FLYING BLIND ON ISSUES SUCH AS HOW TO VALUE A BENEFIT WHEN TO TAX IT AND WHO MUST REPORT IT TO THE IRS NOW COMES A RARE BIT OF GUIDANCE PLEASING TO AIRLINES AND THEIR CUSTOMERS IRS PRIVATE RULING 9340007 TELLS AN UNIDENTIFIED AIRLINE THAT IT NEEDN'T REPORT THE FREQUENTFLIER BENEFITS IT PROVIDES THAT IS BECAUSE THE LAW REQUIRES REPORTS OF 600 OR MORE OF DETERMINABLE INCOME AND THE AIRLINE CAN'T DETERMINE IF THE BENEFITS CREATE INCOME THE APPARENTLY SMALL CARRIER GIVES CASH OR TICKETS AN EMPLOYEE WHO KEEPS CASH AWARDED FOR EMPLOYERPAID BUSINESS TRAVEL HAS INCOME NOT AN EXEMPT FRINGE BENEFIT THE IRS SAYS SO HAS SOMEONE WHO EARLIER GOT TAX BENEFITS BY DEDUCTING BUSINESSTRIP TICKETS BUT A WINNER OF A CASH AWARD FOR NONDEDUCTIBLE PERSONAL TRAVEL JUST REDUCES THE COSTS AND DOESN'T HAVE INCOME THE RULING LEAVES MANY QUESTIONS UNANSWERED NOTES PUBLISHER RESEARCH INSTITUTE OF AMERICA S CORPORATIONS AND PARTNERSHIPS WILL PAY DEARLY FOR USING FISCAL YEARS BECAUSE THEY DON'T OPERATE ON THE CALENDAR YEAR THESE ENTITIES MUST MAKE TAXLIKE DEPOSITS EACH MAY 15 S CONCERNS ARE TAXED MUCH LIKE PARTNERSHIPS THE RATE IS ONE PERCENTAGE POINT ABOVE THE PRIOR YEAR'S TOP PERSONALINCOMETAX RATE BECAUSE THE 1993 TAX ACT RAISED THE TOP 1993 PERSONAL RATE TO 396 FROM 31 THE RATE FOR DEPOSITS DUE NEXT MAY 15 JUMPS TO 406 FROM 32 THE DEPOSITS WHICH DON'T EARN INTEREST STEM FROM THE 1987 TAX ACT WHEN CONGRESS SET CONDITIONS FOR PERMISSION TO USE FISCAL YEARS THE HIGH DEPOSIT RATE MAY BE HARD TO TAKE FOR THOSE SMALLBUSINESS OWNERS WHO PAY PERSONAL TAXES AT A MUCH LOWER RATE NOTES ALAN WEINER OF HOLTZ RUBENSTEIN & CO CPAS IN MELVILLE NY BUT THE DEPOSIT REQUIREMENTS DON'T TAKE AN OWNER'S PERSONALTAX RATE INTO ACCOUNT THE IRS RECENTLY MADE AN EMBARRASSING DISCLOSURE IT HAD INVESTIGATED SEVERAL HUNDRED WORKERS FOR SNOOPING IN TAXPAYER FILES AND HAD PROSECUTED A FEW IT PROMISED TO BLOCK IMPROPER ACCESS TO FILES NOW INSPECTORS PLAN TO DETER ABUSES BY HAVING COMPUTERS MATCH TAXPAYERACCOUNT DATA WITH DATA ON EMPLOYEES THE AIM IS TO EXPOSE REFUND FRAUD EMBEZZLEMENT OR ABUSE OF THE SYSTEM ON BEHALF OF RELATIVES OR FRIENDS ADDRESSES AND SOCIAL SECURITY NUMBERS LINKED TO DUBIOUS REFUNDS WILL BE CHECKED AGAINST EMPLOYEE RECORDS EMPLOYEE ACCESS TO ACCOUNTS WILL BE SCRUTINIZED THE RECIPIENTS OF CERTAIN REFUNDS CREDITS AND ADJUSTMENTS WILL BE CHECKED AGAINST EMPLOYEE RECORDS AUDITS WILL BE CHECKED FOR SUSPICIOUS RELATIONSHIPS BETWEEN EMPLOYEES AND TAXPAYERS COMPUTERS ALSO WILL LOOK FOR PADDED TRAVEL EXPENSES AND FAILURES TO DISCLOSE DEBTS INDICATING CONFLICTS OF INTEREST THE MAIN PURPOSE IS DETERRENCE THE IRS ESTIMATES THE PROGRAM WILL COST UNDER 2 MILLION AND GENERATE REVENUE AND SAVINGS OF 24 MILLION LENDERS AND US AGENCIES WILL BE REQUIRED BY NEW LAW TO TELL THE IRS ABOUT DEBT CANCELLATIONS A DEBTOR MAY BE TAXABLE ON INCOME FROM FORGIVEN DEBT YET CANCELLATION TERMS OFTEN MAKE IT HARD TO FIX AN EXACT DATE WHEN A DEBT WAS WIPED OUT SAYS FRED WITT A PHOENIX LAWYER NOW IRS NOTICE 9352 SEEKS COMMENTS ON THAT TIMING ISSUE TAX TREATIES ADVANCE THE SENATE FOREIGN RELATIONS PANEL PLANS A RATIFICATION HEARING TODAY ON PACTS WITH MEXICO RUSSIA BARBADOS THE NETHERLANDS AND ISRAEL PRESIDENT CLINTON ASKED THE SENATE TO RATIFY PACTS WITH THE CZECH AND SLOVAK REPUBLICS THE US SIGNED A TREATY WITH KAZAKHSTAN ESKIMO WHALING CAPTAINS COULD TAKE CHARITABLE DEDUCTIONS FOR OUTFITTING CREWS TO HUNT WHALES TO FEED THEIR VILLAGES UNDER A BILL BY ALASKA SENATORS STEVENS AND MURKOWSKI THE IRS HAS DENIED SUCH DEDUCTIONS A CAPTAIN'S ANNUAL COSTS ARE 2500 TO 5000 STEVENS SAYS FOREIGN PENSION PLANS POSE AN UNEXPECTED TAX PROBLEM FOR MULTINATIONALS IN MAY THE IRS PROPOSED RULES TO APPLY CODE SECTION 404A AND SUDDENLY THREATENED HUNDREDS OF MILLIONS OF DOLLARS OF DEDUCTIONS TAKEN BY US COMPANIES' FOREIGN SUBSIDIARIES SINCE THE OBSCURE LAW WAS ENACTED IN 1980 THE ISSUE PAYMENTS INTO FOREIGN PENSION PLANS WHICH MAY NOT MEET PROPOSED IRS STANDARDS AT A RECENT HEARING INTERNATIONAL COMPANIES AND GROUPS PRESSED THE IRS TO WITHDRAW RETROACTIVITY AND TO ALLOW A YEAR TO PREPARE FOR FUTURE COMPLIANCE SPEAKING FOR THE AMERICAN INSTITUTE OF CPAS HARVEY COUSTAN OF ERNST & YOUNG SAID COMPANIES HAVE RELIED FOR OVER A DECADE ON IRS POLICY THAT THE PROPOSED RULES WOULD REVERSE THOMAS ROWLEY OF WILLIAM M MERCER INC BENEFITS CONSULTANTS SAID MANY COMPANIES WOULD FIND IT COSTLY AND PERHAPS IMPOSSIBLE TO COMPILE THE DATA NEEDED TO QUALIFY FOR DEDUCTIONS FOR LONGAGO YEARS MANY COMPANIES MAY NOT HAVE KEPT DATA FROM THE LATE 1970S AND EARLY 1980S THAT WOULD BE NEEDED TO COMPLY WITH THE PROPOSED RULES WITNESSES SAID BRIEFS NEVADA EXTENDED TO NOV 30 FROM SEPT 30 THE DEADLINE FOR ITS USETAX AMNESTY RESIDENTS WHO OWE SALES TAX ON OUTOFSTATE PURCHASES IN THE PAST THREE YEARS CAN ESCAPE INTEREST AND PENALTIES BY PAYING UP THE IRS LISTS 472 RULEWRITING PROJECTS UP FROM 459 ON MARCH 31 9310270069 931027 TECHNOLOGY INTERACTIVE NETWORK SONY'S TV UNIT SIGN DEVELOPMENT PACT LOS ANGELES OPERATOR TO SHARE TECHNOLOGY NEW PARTNER TO MAKE PLAYALONG SHOWS BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES INTERACTIVE NETWORK INC BACKED BY SEVERAL MEDIA GIANTS SAID IT SIGNED AN INTERACTIVE PROGRAMMING DEVELOPMENT DEAL WITH SONY PICTURES ENTERTAINMENT TV UNDER THE PACT INTERACTIVE NETWORK WILL SHARE TECHNICAL KNOWHOW AND HARDWARE WITH THE SONY CORP TELEVISION UNIT IN ORDER TO FACILITATE THE PRODUCTION OF INTERACTIVE PROGRAMMING ALSO THE TECHNOLOGY TRANSFER UNDER THE DEAL ALLOWS SONY TO ALTER EXISTING PROGRAMMING TO ALLOW FOR INTERACTIVITY INTERACTIVE NETWORK SUBSCRIBERS RECEIVE A SIMULCAST SIGNAL WHICH ALLOWS THOSE VIEWERS TO PARTICIPATE IN THE PROGRAMS FOR EXAMPLE BY PLAYING ALONG WITH GAMESHOWS AND GETTING REPONSES FROM THE TELEVISION PREVIOUSLY INTERACTIVE NETWORK'S TECHNICIANS WERE REQUIRED TO MANUALLY SYNCHRONIZE INTERACTIVE NETWORK BROADCASTS WITH TELEVISION BROADCASTS ON A STATIONBYSTATION MARKETBYMARKET BASIS BUT UNDER THE NEW PACT INTERACTIVE NETWORK WILL RECEIVE THE BENEFIT OF INTERACTIVEREADY VERSIONS OF SUCH SHOWS AS WHEEL OF FORTUNE AND JEOPARDY WITHOUT THE NEED TO IMBED THEM WITH SPECIALLY CODED SIGNALS SONY WHICH OWNS THESE PROPERTIES THROUGH ITS MERV GRIFFIN ENTERPRISES UNIT WILL SHARE ROYALTIES FROM THESE AND SUBSEQUENT INTERACTIVE SHOWS WITH INTERACTIVE NETWORK TELECOMMUNICATIONS INC THE TARGET OF A PLANNED BELL ATLANTIC CORP ACQUISITION WHICH IS BACKING QVC NETWORK INC'S BID FOR PARAMOUNT COMMUNICATIONS INC OWNS 17 OF INTERACTIVE NETWORK GENERAL ELECTRIC CO'S NBC UNIT HOLDS AN 11 STAKE AND GANNETT CO OWNS 91 OF THE COMPANY THE CONTRACT WHICH HAS NO SPECIFIC EXPIRATION DATE IS THE FIRST DEVELOPMENT DEAL BETWEEN INTERACTIVE NETWORK AND A HOLLYWOOD PRODUCER AS PART OF ITS MARKETING STRATEGY TO ENCOURAGE THE SPREAD OF INTERACTIVE TELEVISION INTERACTIVE NETWORK IS ALLOWING THE SONY TELEVISION UNIT TO PRODUCE PROGRAMMING FOR THIRD PARTIES WHICH WILL ULTIMATELY TRAVEL ACROSS INTERACTIVE NETWORK'S SERVICE IT IS NOT OUR GOAL TO BE THE SOLE PROVIDER SAID DAVE LOCKTON PRESIDENT AND CHIEF EXECUTIVE OF INTERACTIVE NETWORK THE COMPANY OPERATES A SUBSCRIPTIONBASED PATENTED ENTERTAINMENT SYSTEM ALLOWING TELEVISION VIEWERS TO INTERACT DIRECTLY WITH TELEVISION PROGRAMS THE COMPANY WHICH OFFERS ITS SERVICE IN THE CHICAGO SACRAMENTO CALIF AND SAN FRANCISCO MARKETS CURRENTLY SAID IT PLANS TO EXPAND NATIONWIDE IN THE FALL OF 1994 AT THE BEGINNING OF THIS YEAR INTERACTIVE NETWORK HAD 3300 SUBSCRIBERS A SPOKESMAN FOR THE SONY TELEVISION UNIT SAID SONY HAS 20 OR 30 NEW SHOWS THAT ARE CANDIDATES FOR INTERACTIVITY AND THAT A HANDFUL OF THESE SHOULD BE READY FOR THE INTERACTIVE NETWORK'S NATIONWIDE LAUNCH IN 1994 9310270068 931027 BUSINESS BRIEF ECO CORP COMPANY TO CHANGE NAME AND CONSOLIDATE ITS STOCK ECO CORP SAID IT PLANS TO CONSOLIDATE ITS SHARES ON A 1FOR10 BASIS IN ORDER TO INCREASE INTEREST IN THE COMPANY'S STOCK AMONG US INSTITUTIONAL INVESTORS THE TORONTO ENVIRONMENTAL CONCERN ALSO SAID IT PLANS TO CHANGE ITS NAME TO AMERICAN ECO CORP FOLLOWING RECENT ACQUISITIONS THE COMPANY SAID 98 OF ITS SALES NOW ORIGINATE IN THE US ECO SAID IT WILL HAVE 48 MILLION SHARES OUTSTANDING FOLLOWING THE SHARE CONSOLIDATION WHICH IS EXPECTED TO OCCUR NEXT MONTH SUBJECT TO APPROVAL OF THE TORONTO STOCK EXCHANGE THE COMPANY SAID MICHAEL E MCGINNIS CURRENTLY HEAD OF THE US OPERATIONS HAS BEEN NAMED ECO'S PRESIDENT AND CHIEF EXECUTIVE OFFICER HE SUCCEEDS JC PENNIE WHO WAS NAMED TO THE NEW POSITION OF VICE CHAIRMAN 9310270067 931027 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN EUROPEAN COMMUNITY FOREIGN MINISTERS IDENTIFIED FIVE AREAS FOR JOINT ACTION IN FOREIGNPOLICY COOPERATION UNDER THE EC UNITY TREATY THAT TAKES EFFECT MONDAY UNDER THE MAASTRICHT TREATY WHICH ALSO SETS OUT GOALS OF ECONOMIC UNIFICATION AND A SINGLE CURRENCY EC LEADERS CAN IDENTIFY FOREIGNPOLICY AREAS FOR MEMBER NATIONS TO TAKE CONCERTED ACTIONS THE PROPOSALS WHICH ARE EXPECTED TO BE CONFIRMED AT AN EC SUMMIT FRIDAY INCLUDE ROLES OR HELP IN EASTERN EUROPEAN STABILITY A MIDEAST PEACE PLAN SOUTH AFRICA'S DEMOCRATIZATION RUSSIAN PARLIAMENTARY ELECTIONS AND ANY PEACE PLAN FOR THE CIVIL WAR IN THE FORMER YUGOSLAVIA CRITICS CITED THE EC'S FAILURE TO BROKER A PEACE IN THE FORMER YUGOSLAVIA AS EVIDENCE THAT THE TRADING BLOC ISN'T READY FOR A MAJOR ROLE ON THE FOREIGNPOLICY STAGE CHINA DRAFTED LEGISLATION TO INCREASE THE RANKS OF CERTIFIED PUBLIC ACCOUNTANTS TO 100000 FROM 6700 BY THE END OF THE DECADE CHINESE LEGISLATORS SAID THE NUMBER OF CPAS MUST BE EXPANDED TO IMPROVE MANAGEMENT STANDARDS UNDER ECONOMIC REFORMS COMMUNIST RULERS ABOLISHED THE ACCOUNTING PROFESSION IN 1951 BECAUSE THEY REGARDED IT AS BOURGEOIS THE PROFESSION WAS REESTABLISHED IN 1981 CHINA NOW HAS 2400 STATERUN ACCOUNTING OFFICES ROMANIA DEVALUED ITS LEU CURRENCY 396 PUTTING THE EXCHANGE RATE ABOVE 1000 LEI TO THE US DOLLAR FOR THE FIRST TIME THE CENTRAL BANK SET THE RATE AT 1036 LEI TO THE DOLLAR DOWN FROM 995 ROMANIAN NEWS REPORTS SAID THE MOVE WOULD BRING GALLOPING INFLATION AND RAISE IMPORT PRICES ANNUAL INFLATION IS NEARING 300 PRODUCTION HAS DROPPED ALMOST 50 IN THE PAST THREE YEARS AS THE GOVERNMENT HAS TRIED TO SWITCH FROM A COMMAND ECONOMY ARMENIA WILL BAN USE OF FOREIGN CURRENCY STARTING NOV 8 IN A MOVE TO LEAD TO MONETARY UNION WITH RUSSIA ALONG WITH FOUR OTHER FORMER SOVIET REPUBLICS THE FIVE REPUBLICS' ACCESS TO THE RUSSIAN RUBLE REQUIRES CHANGES TO ALIGN THEIR ECONOMIC POLICIES WITH THOSE OF RUSSIA IN THE TRANSITION ARMENIA WILL USE AS ITS NATIONAL CURRENCY RUBLES PRINTED BEFORE 1993 WHICH ARE NO LONGER LEGAL TENDER IN RUSSIA AND WILL DISCONTINUE USING NEW RUBLES THE OTHER PARTICIPANTS IN THE MONETARY ACCORD BELARUS KAZAKHSTAN TAJIKISTAN AND UZBEKISTAN ALREADY USE THE PRE1993 RUBLES A RUSSIAN GOVERNMENT COMMISSION APPROVED A PLAN TO CLOSE THE MOST UNPROFITABLE OF THE COUNTRY'S 238 COAL MINES THE PLAN ANTICIPATES CLOSING 11 MINES IN THE NEXT TWO OR THREE YEARS AND DECLARING BANKRUPT 31 PITS THAT ACCOUNT FOR JUST 3 OF THE SECTOR'S OUTPUT AND 8 OF ITS JOBS BUT 20 OF ITS ACCIDENTS IN THE COAL INDUSTRY SHAKEN BY LABOR UNREST SINCE THE LATE 1980S ANTIQUATED EQUIPMENT AND THE ABSENCE OF INVESTMENT HAVE REDUCED OUTPUT AND INCREASED ACCIDENT RATES SHARP CUTS IN GOVERNMENT SUBSIDIES IN RECENT YEARS ALSO HAVE HURT THE MINES IN THIS YEAR'S FIRST EIGHT MONTHS COAL OUTPUT TOTALED 204 MILLION TONS OR 90 OF LAST YEAR'S LEVEL BRITAIN'S TOP TAILORS DROPPED THEIR UNOFFICIAL BAN ON MEN WEARING BROWN SUITS IN THE CITY LONG DERIDED BY WANING UPPER CLASSES AS A SOCIAL GAFFE ON SAVILE ROW LONDON'S FASHIONABLE TAILORING STREET THE SNOBBISH DISAPPROVAL OF BROWN FOR TOWN DEVELOPED WHEN ARISTOCRATS WHO DRESSED IN BROWN SUITS FOR WEEKEND STAYS AT THEIR COUNTRY ESTATES WERE WIDELY COPIED BY LESS WELLOFF CITY WORKERS THE FEDERATION OF MERCHANT TAILORS SAID IT LIFTED ITS LONGSTANDING RULES ABOUT FORMAL DAY WEAR BLACK BLUE AND GRAY SUITS FOR THE CITY AND BROWNS AND TWEEDS FOR THE COUNTRY TO REFLECT CHANGING ATTITUDES AND BROADEN THE GROUP'S APPEAL TO A WORLD MARKET MALAYSIAN FINANCE MINISTER DATUK ANWAR IBRAHIM A WEEK AWAY FROM BECOMING HEIR APPARENT TO THE PREMIERSHIP IS EXPECTED TO LACE HIS THIRD BUDGET AMPLY WITH TAX CUTS INVESTMENT AND SAVINGS INCENTIVES AND BENEFITS FOR THE POOR MR DATUK ANWAR WHO IS TO SUBMIT HIS 1994 BUDGET PROPOSAL TO PARLIAMENT ON FRIDAY MAY RECOMMEND TRIMMING THE 34 CORPORATE INCOMETAX RATE AT LEAST TO 32 TOWARD THE GOAL OF BRINGING THE LEVY IN LINE WITH THAILAND'S 30 AND SINGAPORE'S 27 OTHER EXPECTED PROVISIONS WOULD CUT TWO PERCENTAGE POINTS OFF INDIVIDUAL INCOMETAX RATES WHICH NOW REACH A HIGH OF 34 INCREASE TAX REBATES ON REPATRIATED INCOME LOWER DUTIES ON IMPORTED FOOD AND CAPITAL GOODS OFFER INCENTIVES TO INCREASE INDUSTRIAL INVESTMENT BY MALAYSIANS AND BUILD HOUSING FOR PEOPLE WITH LOW AND MIDDLE INCOMES ON NOV 4 MALAYSIA'S DOMINANT POLITICAL PARTY THE UNITED MALAYS NATIONAL ORGANIZATION WILL SELECT MR DATUK ANWAR 46 YEARS OLD AS ITS NO 2 LEADER AND BY CUSTOM THE NATION'S DEPUTY PREMIER OF THE 40 BILLION THAT THE WEST INVESTED IN DEVELOPING COUNTRIES LAST YEAR 5 BILLION OR 125 WENT TO CHINA A UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION OFFICIAL SAID AT AN INVESTMENT SEMINAR IN CHINA'S NORTHEASTERN LIAONING PROVINCE THIEVES BROKE INTO THE RUSSIAN MINT BY SAWING THROUGH IRON WINDOW BARS AND GOT AWAY WITH 500 MILLION RUBLES OR 420500 ONLY THE DOORS WERE LINKED TO AN ALARM MOSCOW POLICE SAID THE THEFT COULD HAVE OCCURRED A WEEK AGO BUT WASN'T DISCOVERED SOONER BECAUSE OFFICIALS WERE OVERCONFIDENT ABOUT THE SECURITY SYSTEM 9310270066 931027 BUSINESS BRIEF ORACLE CORP SHARP HANDHELD COMPUTER WILL BE JOINTLY MARKETED ORACLE CORP SAID IT AGREED WITH JAPAN'S SHARP CORP TO JOINTLY MARKET HANDHELD COMPUTERS THAT USE AN ORACLE PROGRAM TO ALLOW THE DEVICES TO EASILY TAP INTO BIG DATABASES ORACLE OF REDWOOD SHORES CALIF SAID IT HAS ADAPTED A PROGRAM CALLED ORACLE GLUE WHICH CONNECTS PERSONAL COMPUTERS TO ORACLE'S DATABASE PROGRAMS RUNNING ON LARGER COMPUTERS TO ALLOW A SHARP HANDHELD COMPUTER CALLED THE EXPERTPAD TO TAP INTO ORACLE DATABASES SHARP'S DEVICE WHICH USES APPLE COMPUTER INC'S NEWTON TECHNOLOGY IS SIMILAR TO APPLE'S HANDHELD MESSAGEPAD COMPUTER ORACLE GLUE ALREADY ALLOWS SHARP'S WIZARD POCKET ORGANIZER TO TIE INTO ORACLE DATABASES TO DO SUCH TASKS AS RETRIEVING CUSTOMER LISTS ORACLE SAID IT WILL ALSO WORK WITH SHARP TO PROMOTE SHARP'S HANDHELD MACHINES AMONG CORPORATE USERS OF ORACLE DATABASES 9310270065 931027 BAXTER SIGNS 5YEAR SUPPLY PACT DEERFIELD ILL BAXTER INTERNATIONAL INC REACHED A FIVEYEAR SUPPLY AGREEMENT WITH AMERICAN HEALTHCARE SYSTEMS UNDER WHICH THE SAN DIEGO CONCERN IS EXPECTED TO BUY MORE THAN 4 BILLION IN SUPPLIES AND SERVICES FROM BAXTER THE MEDICALSUPPLY CONCERN SAID THE AGREEMENT MARKS A RENEWAL AND AN EXPANSION OF A 1988 PACT DURING THE COURSE OF WHICH AMERICAN HEALTH SYSTEMS HOSPITALS BOUGHT ABOUT 25 BILLION OF GOODS AMERICAN HEALTHCARE IS A FORPROFIT CONCERN OWNED BY 1000 NONPROFIT HOSPITALS 9310270064 931027 BELL AND TCI PLAN TO INVEST 15 BILLION IN SUPERHIGHWAY' AFTER THE TAKEOVER BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC WILL SPEND 15 BILLION IN THE NEXT FIVE YEARS BUILDING THE INFORMATION SUPERHIGHWAY THEY HOPE MILLIONS OF EAGER VIEWERS WILL TRAVEL BELL ATLANTIC'S CHAIRMAN PLANS TO TELL LAWMAKERS TODAY THAT WOULD BE AT LEAST 15 TO 20 MORE THAN CURRENT CAPITAL PLANS OF THE TWO COMPANIES AND WOULD COME ON TOP OF BELL ATLANTIC'S PROPOSED ACQUISITION OF TCI FOR STOCK THAT COULD TOTAL MORE THAN 20 BILLION IN VALUE BELL ATLANTIC PHILADELPHIA IS A REGIONAL BELL COMPANY PROVIDING PHONE SERVICE IN SEVEN MIDATLANTIC STATES TCI ENGLEWOOD COLO IS THE NATION'S LARGEST CABLETELEVISION COMPANY AND A MAJOR OWNER OF PROGRAMMING BELL ATLANTIC CHAIRMAN RAYMOND W SMITH BEGINS HIS PUBLIC CAMPAIGN TO SELL THE DEAL TO POLICY MAKERS TODAY AS HE ADDRESSES A HEARING OF THE SENATE ANTITRUST SUBCOMMITTEE MR SMITH WILL USE THE PLANNED OUTLAYS OF 15 BILLION AS ONE OF THE SELLING POINTS FOR THE DEAL MR SMITH IS EXPECTED TO OUTLINE HIS VISION FOR MERGING THE TWO BEHEMOTHS AND HELPING TO CREATE A NEW COMPETITIVE INTERACTIVE COMMUNICATIONS MARKET HE SAID IN AN INTERVIEW THAT HE PLANS TO TELL THE SPECIAL HEARING HEADED BY SEN HOWARD METZENBAUM D OHIO A KEY CRITIC OF THE PROPOSED DEAL THAT WE THINK THIS DEAL IS PROCOMPETITIVE IN THAT IT PROVIDES COMPETITION CHOICE CONTROL AND CONVENIENCE TO CUSTOMERS WHO WANT TO INTERACT WITH EACH OTHER THROUGH THEIR TELEVISIONS THE FOUR CS HE SAID LINING HIS HANDS UP LIKE GOALPOSTS FOR EMPHASIS BUT SOME LAWMAKERS AND OTHER CRITICS FEAR THE COMBINED COMPANIES MIGHT COME TO SYMBOLIZE A FIFTH C CONCENTRATION MR METZENBAUM CALLED TODAY'S SCHEDULED HEARING TO ADDRESS CONCERNS THAT THE COMBINED COMPANIES WOULD HAVE TOO MUCH MARKET POWER THE NEW COMPANY WILL HAVE 75 BILLION IN CASH FLOW LINES INTO 20 OF US HOMES AND ROUGHLY 6 OWNERSHIP OF THE NATION'S ENTERTAINMENT PROGRAMMING BY MR SMITH'S OWN ESTIMATES THE JUSTICE DEPARTMENT IS APPEALING A RULING BY A FEDERAL APPEALS COURT IN ALEXANDRIA VA WHICH GAVE BELL ATLANTIC THE GREEN LIGHT TO PROVIDE VIDEO SERVICES OVER ITS PHONE LINES THE RULING GREASED THE WAY FOR THE TCI DEAL ALMOST IMMEDIATELY BUT A SUCCESSFUL APPEAL BY THE JUSTICE DEPARTMENT COULD AT THE LEAST DELAY THE TRANSACTION MR SMITH HAS MET PRIVATELY WITH MANY LAWMAKERS IN THE PAST TWO WEEKS TO SELL THEM ON HIS IDEA TO MARRY PHONES AND CABLE TV HE IS TRYING TO CONVINCE THEM AND OTHER POTENTIAL OPPONENTS THAT NO ONE COMPANY CAN BUILD A SUPERHIGHWAY FOR DELIVERING PHONE DATA AND VIDEO SERVICES ON ITS OWN BY JOINING WITH TCI BELL ATLANTIC WILL BE ABLE TO SPEND BILLIONS ON THE SUPERHIGHWAY WITHOUT HAVING TO TAKE ON EXTRA DEBT INSTEAD FUNDING THE WORK ON THE STRENGTH OF FUTURE CASH FLOW AND REVENUE FROM NEW SERVICES MR SMITH SAID DESPITE THE NEW INVESTMENT OF 15 BILLION TO UPGRADE THE PHONE AND CABLE SYSTEMS OVER FIVE YEARS MR SMITH MAINTAINED BELL ATLANTIC WOULD FREELY MAKE ITS NETWORKS AVAILABLE TO RIVALS WHILE BELL ATLANTIC WOULD CONTROL THIS NEW NETWORK MR SMITH SAID THE MORE SLOTS WE RENT ON OUR SERVERS FOR OTHERS TO DELIVER PROGRAMMING THE BETTER OFF WE'LL BE A SERVER WILL BE A COMPUTER SYSTEM THAT DELIVERS DIGITAL PROGRAMMING BELL ATLANTIC'S NETWORK OF THE FUTURE WILL CONSIST OF THE COMPUTER SERVERS LINKED TO HOMES THROUGH HIGHCAPACITY FIBEROPTIC CABLES AND DIGITAL SWITCHES TO HANDLE THE TRAFFIC MR SMITH ADDED VIEWERS WILL GAIN ACCESS TO THE PROGRAMS THROUGH A SPECIAL TV SETTOP BOX TO ERASE CONCERNS THAT BELL ATLANTIC WILL FAVOR ITS OWN PROGRAMMERS FIRST MR SMITH SAID THE COMPANY WILL PLACE ALL PROGRAMMING DISTRIBUTED IN ITS SEVENSTATE CALLING AREA IN A SEPARATE SUBSIDIARY BELL ATLANTIC VIDEO SERVICES HE VOWS THE UNIT WILL HAVE ITS OWN MANAGEMENT AND DIRECTORS AND HE SAID BELL ATLANTIC'S OWN OPERATIONS WILL HAVE TO GET IN LINE WITH OTHER RIVALS WHEN IT DEALS WITH THE SUBSIDIARY TO PUMP PROGRAMS OR SOFTWARE TO BELL ATLANTIC'S REGULAR CUSTOMERS EVEN IF MR SMITH WINS OVER OPPONENTS IN THE SENATE HOWEVER HE FACES OTHER OBSTACLES SOME TCIOWNED PROGRAMMING MAY LEAVE BELL ATLANTIC WITH A PERIPHERAL VIOLATION OF RULES BARRING THE BABY BELLS FROM CARRYING TRAFFIC ACROSS CERTAIN SERVICE BOUNDARIES MUCH OF THIS PROGRAMMING IS DELIVERED TO TCI'S CABLE NETWORK VIA SATELLITE MR SMITH SAID BELL ATLANTIC WILL SEEK A WAIVER IN FEDERAL COURT TO WIN THE RIGHT TO USE THE SATELLITE FACILITIES FOR PROGRAMMING VENTING HIS FRUSTRATION MR SMITH WAVED HIS FIST AND THREW DOWN HIS PEN IT'S AN ARCHAIC RULE HE SAID 9310270063 931027 BUSINESS BRIEF DESTEC ENERGY INC FIRM ACQUIRES 50 INTEREST IN TEXACO NEVADA OPERATION DESTEC ENERGY INC AND TEXACO INC SAID THEY FORMED A VENTURE TO JOINTLY OWN AND OPERATE AN EXISTING 85MEGAWATT COGENERATION PLANT IN NEVADA BLACK MOUNTAIN WHICH IS NEAR LAS VEGAS AND WHICH BEGAN OPERATION IN JANUARY PROVIDES ELECTRICITY TO NEVADA POWER CO AND THERMAL ENERGY TO THE ADJACENT PACIFIC COAST BUILDING PRODUCTS INC WALLBOARD MANUFACTURING PLANT 9310270062 931027 BUSINESS BRIEF INSTEEL INDUSTRIES INC MAKER OF WIRE PRODUCTS SAYS ITS 4THPERIOD PROFIT TO RISE INSTEEL INDUSTRIES INC EXPECTS TO REPORT THAT FISCAL FOURTHQUARTER EARNINGS JUMPED TO BETWEEN 24 MILLION AND 29 MILLION OR 30 CENTS TO 35 CENTS A SHARE SAID HO WOLTZ III PRESIDENT AND CHIEF EXECUTIVE OFFICER THE MOUNT AIRY NC MAKER OF WIRE AND WIRE PRODUCTS REPORTED EARNINGS OF 18 MILLION OR 29 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE IN THE JUSTCOMPLETED QUARTER ENDED SEPT 30 SHOULD BE FLAT WITH YEAREARLIER LEVELS MR WOLTZ SAID OR ABOUT 63 MILLION TO 64 MILLION FOR THE FULL FISCAL YEAR INSTEEL EXPECTS TO REPORT NET INCOME OF 58 MILLION TO 63 MILLION OR ABOUT 75 CENTS TO 79 CENTS A SHARE THAT WOULD COMPARE WITH 43 MILLION OR 68 CENTS A SHARE A YEAR EARLIER REVENUE IN THE JUSTCOMPLETED YEAR TOTALED ABOUT 245 MILLION MR WOLTZ SAID COMPARED WITH 239 MILLION A YEAR EARLIER THE COMPANY IS AT THE END OF A THREEYEAR 35 MILLION CAPITALSPENDING PROGRAM MOST OF THE MONEY WENT TOWARD RESTRUCTURING COMPANY OPERATIONS AND EXPANDING INTO NEW PRODUCTS MR WOLTZ SAID 9310270060 931027 BUSINESS BRIEF MDS HEALTH GROUP LTD CANADA GOVERNMENT AGENCY IS SUED OVER END OF CONTRACT MDS HEALTH GROUP LTD FILED A LAWSUIT AGAINST A CANADIAN GOVERNMENT AGENCY THAT WANTS TO BREAK A CONTRACT FOR SUPPLYING RADIOACTIVE ISOTOPES TO AN MDS UNIT MDS A TORONTO CONCERN THAT PROVIDES SERVICES AND PRODUCTS TO THE HEALTHCARE INDUSTRY SAYS IT HAS A CONTRACT FOR ANOTHER 18 YEARS TO PURCHASE BULK ISOTOPES FROM ATOMIC ENERGY OF CANADA LTD A FEDERAL AGENCY THE ISOTOPES ARE RESOLD BY MDS UNIT NORDION INTERNATIONAL INC TO HOSPITALS TO BE USED FOR DIAGNOSTIC PURPOSES IN ITS CLAIM FILED IN THE ONTARIO COURT OF JUSTICE MDS SAID ATOMIC ENERGY ANNOUNCED IT HAD PERMANENTLY SHUT ONE OF TWO ONTARIO REACTORS THAT PRODUCE THE ISOTOPES ATOMIC ENERGY CLAIMED THIS ENTITLED IT TO TERMINATE THE CONTRACT ACCORDING TO THE LAWSUIT A SPOKESMAN SAID THE AGENCY IS CONFIDENT IN OUR ABILITY TO DEFEND OURSELVES MDS SAID THE PACT WAS PIVOTAL TO ITS PURCHASE OF 83 OF NORDION FROM THE GOVERNMENT IN 1991 MDS IS SEEKING THE RETURN OF THE ORIGINAL PURCHASE PRICE OF 165 MILLION CANADIAN DOLLARS US1258 MILLION AS WELL AS C300 MILLION IN DAMAGES 9310270059 931027 BUSINESS BRIEF TOSCO CORP REFINER REPORTS EARNINGS ROSE SIXFOLD IN 3RD QUARTER TOSCO CORP STAMFORD CONN SAID THIRDQUARTER NET INCOME INCREASED MORE THAN SIXFOLD ON STRONG REFINERY REVENUE FOLLOWING ITS APRIL PURCHASE OF THE BAYWAY FACILITY IN NEW JERSEY TOSCO AN INDEPENDENT OIL REFINER REPORTED NET INCOME OF 279 MILLION OR 86 CENTS A SHARE COMPARED WITH 46 MILLION OR SEVEN CENTS A SHARE A YEAR EARLIER A COMPANY SPOKESMAN SAID THE PREVIOUS YEAR'S RESULTS WERE HURT BY LOSSES AT A PHOSPHATE FERTILIZER UNIT THAT HAS SINCE BEEN SOLD REVENUE FOR THE QUARTER MORE THAN DOUBLED TO 104 BILLION FROM 516 MILLION A YEAR EARLIER IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY TOSCO SHARES WERE UP 25 CENTS TO 28375 9310270058 931027 BUSINESS BRIEF HSBC HOLDINGS PLC MARINE MIDLAND UNIT POSTS 62 SURGE IN 3RDPERIOD NET MARINE MIDLAND BANKS INC A UNIT OF HSBC HOLDINGS PLC REPORTED A 62 SURGE IN THIRDQUARTER NET INCOME IN PART MARINE MIDLAND'S EARNINGS SURGED IN THE LATEST PERIOD BECAUSE IT DIDN'T SET ASIDE A RESERVE FOR LOAN LOSSES A YEAR EARLIER THE COMPANY IN BUFFALO NY MADE A 102 MILLION PROVISION FOR SUCH LOSSES MARINE MIDLAND SAID THIRDQUARTER NET WAS 485 MILLION UP FROM 219 MILLION BEFORE EXTRAORDINARY TAX CREDITS A YEAR EARLIER AFTER THE CREDITS YEAREARLIER NET WAS 299 MILLION NONACCRUING LOANS DECLINED TO 430 MILLION IN THE THIRD QUARTER FROM 7598 MILLION A YEAR EARLIER MARINE MIDLAND SAID NO NEW PROVISIONS FOR LOAN LOSSES WERE DEEMED NECESSARY THE COMPANY SAID HSBC WHICH OPERATES OUT OF HONG KONG AND LONDON IS THE HOLDING COMPANY FOR HONGKONG & SHANGHAI BANKING CORP 9310270057 931027 USX POSTS PROFIT OF 66 MILLION FOR THIRD QUARTER BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH USX CORP'S RESULTS SWUNG TO A PROFIT IN THE THIRD QUARTER BUT THE STRONG PERFORMANCE OF ITS US STEEL UNIT WAS PARTIALLY OFFSET BY DISAPPOINTING RESULTS AT ITS MARATHON OIL CO UNIT THE STEEL AND ENERGY GIANT POSTED NET INCOME OF 66 MILLION COMPARED WITH A RESTATED NET LOSS OF 4 MILLION IN THE YEAREARLIER PERIOD STOCK IN USX'S US STEEL UNIT JUMPED 250 OR 7 TO CLOSE AT 38125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE MARATHON OIL UNIT'S EARNINGS ROSE 25 TO 30 MILLION OR 10 CENTS A SHARE IN THE QUARTER COMPARED WITH 24 MILLION OR EIGHT CENTS A SHARE A YEAR EARLIER BUT MARK GILMAN AN OIL ANALYST WITH UBS SECURITIES SAID THAT EXCLUDING INVENTORY ADJUSTMENTS AND OTHER ITEMS MARATHON'S PERSHARE PROFIT ACTUALLY WAS 12 CENTS EVEN MORE OF AN IMPROVEMENT OVER LAST YEAR BUT SHORT OF THE 15 CENTS MOST ANALYSTS WERE EXPECTING THE COMPANY HAD A LOSS OF ONE CENT A SHARE IN THE YEAREARLIER PERIOD CALCULATED ON THE SAME BASIS USX CHAIRMAN CHARLES A CORRY SAID LOWER CRUDEOIL PRICES WERE CONTINUING TO DEPRESS MARATHON'S EARNINGS MARATHON'S SALES SLUMPED 12 TO 298 BILLION FROM 338 BILLION IN THE SAME QUARTER LAST YEAR IN BIG BOARD TRADING USXMARATHON GROUP SHARES CLOSED UNCHANGED AT 18875 A SHARE US STEEL POSTED NET INCOME OF 36 MILLION OR 44 CENTS A SHARE COMPARED WITH A NET LOSS OF 28 MILLION OR 48 CENTS A SHARE IN THE YEAREARLIER QUARTER THE RESULTS FOR 1993'S THIRD QUARTER INCLUDE A 20 MILLION GAIN ARISING FROM THE CHANGE IN THE CORPORATE TAX RATE A 9 MILLION INTEREST CHARGE ASSOCIATED WITH AN ANTITRUST LAWSUIT INVOLVING A FORMER UNIT AND A 2 MILLION GAIN FROM ASSET SALES EXCLUDING THESE NONRECURRING ITEMS THE COMPANY EARNED 25 CENTS A SHARE SAID MICHELLE GALANTER APPLEBAUM AN ANALYST AT SALOMON BROTHERS MS APPLEBAUM SAID US STEEL'S RESULTS UNDERSCORED THE STRENGTH OF THE STEEL MARKET BROUGHT ABOUT BY STRONG DEMAND AND SLOWLY IMPROVING PRICING SHE ADDED THAT ON THE NEGATIVE SIDE US STEEL IS STILL BEING HURT BY PROBLEMS IN ITS COAL OPERATIONS US STEEL'S SALES ROSE 12 TO 143 BILLION FROM 127 BILLION SEPARATELY OREGON STEEL MILLS INC BASED IN PORTLAND SAID NET DROPPED IN THE THIRD QUARTER TO 20000 OR FAR LESS THAN ONE CENT A SHARE FROM 35 MILLION OR 18 CENTS A SHARE IN THE YEAREARLIER PERIOD THE COMPANY CITED SOARING SCRAP PRICES AND THE ACQUISITION OF CF&I STEEL CORP AS REASONS FOR ITS SHARP DROP IN EARNINGS THE COMPANY USES SCRAP TO MAKE NEW STEEL WHILE CF&I PRODUCES PRODUCTS WITH LOWER MARGINS THAN THE REST OF THE COMPANY'S PRODUCT MIX IN THE WAKE OF THE ACQUISITION OREGON STEEL'S SALES ALMOST DOUBLED TO 176 MILLION FROM 907 MILLION A YEAR EARLIER OREGON STEEL STOCK ROSE 75 CENTS OR 31 TO CLOSE AT 25125 IN BIG BOARD TRADING YESTERDAY 9310270056 931027 HEALTH PLAN CAPS PAYMENTS BY INDIVIDUALS REVISION SETS 39 OF WAGES AS MAXIMUM LEVEL PROJECTED DEFICIT DROPS BY HILARY STOUT AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION HAS REVISED ITS HEALTHCARE PROPOSAL TO LIMIT THE AMOUNT INDIVIDUALS WOULD PAY TOWARD THEIR HEALTH INSURANCE TO NO MORE THAN 39 OF THEIR WAGES ADMINISTRATION OFFICIALS TOLD CONGRESSIONAL AIDES THE REVISION DESIGNED TO PROTECT LOWINCOME WORKERS IS ONE OF SEVERAL SIGNIFICANT CHANGES THAT ADMINISTRATION OFFICIALS HAVE MADE TO THE 1300PAGE HEALTHCARE BILL THE PRESIDENT AND FIRST LADY HILLARY RODHAM CLINTON WILL PRESENT TO CONGRESS TODAY WHILE THE BROAD THEMES OF THE HEALTH PROPOSAL REMAIN THE SAME AS THOSE IN A WIDELY CIRCULATED DRAFT OF THE PLAN MANY NIPS AND TUCKS HAVE BEEN MADE DURING THE PAST SIX WEEKS IN AN ATTEMPT TO MOLLIFY LAWMAKERS AND SPECIALINTEREST GROUPS ONE RESULT OF ALL THE ALTERATIONS HAS BEEN TO SHRINK THE PLAN'S PROJECTED DEFICIT REDUCTION TO 58 BILLION FROM 1995 THROUGH THE YEAR 2000 THE EARLIER DRAFT OF THE PLAN HAD PROJECTED 91 BILLION IN DEFICIT REDUCTION THROUGH 2000 AND ONLY A COUPLE OF WEEKS AGO ADMINISTRATION OFFICIALS WERE COUNTING ON PARING THE DEFICIT AS MUCH AS 70 BILLION THE NEW DEFICITREDUCTION TOTAL WAS HIGHLIGHTED AT A BRIEFING LAST NIGHT BY SENIOR WHITE HOUSE ADVISER IRA MAGAZINER AND WHITE HOUSE BUDGET DIRECTOR LEON PANETTA THE TWO SPOKE MOSTLY IN GENERALITIES BUT ADMINISTRATION AIDES GAVE MORE DETAILS TO CAPITOL HILL STAFFERS AND LAWMAKERS EARLIER IN THE DAY MR PANETTA WITHOUT ELABORATING ALSO SAID THAT THE ESTIMATED SAVINGS FROM CAPPING MEDICAID SPENDING THROUGH 2000 HAD FALLEN TO 65 BILLION FROM THE EARLIER PROJECTION OF 114 BILLION AMONG THE CHANGES THE ADMINISTRATION SPELLED OUT TO CONGRESS WAS THE 39 CAP ON INDIVIDUALS' WAGES THE EARLIER VERSION OF THE CLINTON HEALTH PLAN DIDN'T PUT ANY LIMITS ON THE AMOUNT INDIVIDUALS COULD PAY TOWARD THEIR HEALTH INSURANCE ALTHOUGH IT OFFERED FEDERAL SUBSIDIES TO PEOPLE WITH INCOMES BELOW 150 OF THE FEDERAL POVERTY LINE THE CLINTON PROPOSAL WHICH AIMS TO GUARANTEE HEALTH COVERAGE TO ALL AMERICANS AND CONTROL MEDICAL COSTS WOULD REQUIRE ALL EMPLOYERS TO PAY ON BEHALF OF THEIR WORKERS AT LEAST 80 OF THE AVERAGE HEALTH INSURANCE PREMIUM IN THEIR REGION THE WORKERS WOULD PICK UP THE REST THE ADMINISTRATION BELIEVES THAT WHAT MIDDLEINCOME AND HIGHINCOME PEOPLE PAY FOR THEIR INSURANCE WON'T COME CLOSE TO THE 39 LIMIT CONGRESSIONAL AIDES SAID THEY WERE ALSO TOLD THAT THE CLINTON PLAN WOULD HAVE TWO LEVELS OF SUBSIDIES FOR POOR PEOPLE ONE FOR THOSE WITH INCOMES BELOW 100 OF THE POVERTY LEVEL AND A LESSER ONE FOR PEOPLE WITH INCOMES BETWEEN 100 AND 150 OF THE BENCHMARK MESSRS PANETTA AND MAGAZINER WHILE EMPHASIZING HEALTH SECURITY AND THE OTHER OVERARCHING GOALS OF PRESIDENT CLINTON'S HEALTH PLAN DID NOTE SEVERAL SPECIFIC CHANGES TO THE PROPOSAL THAT HAVE BEEN MADE IN RECENT WEEKS AMONG THEM A DELAY UNTIL 1998 OF UNIVERSAL COVERAGE MR PANETTA SAID THAT AFTER CONSULTING WITH THE STATES THE ADMINISTRATION EXPECTED 15 OF THE US POPULATION TO BE PHASED INTO THE NEW CLINTON HEALTH SYSTEM BY 1996 40 BY 1997 AND 100 BY 1998 AN EARLIER VERSION OF THE PLAN WOULD HAVE PHASED IN THE CLINTON SYSTEM COMPLETELY BY 1997 TO EASE CONCERNS ABOUT PEOPLE'S ABILITY TO CHOSE THEIR DOCTORS MR MAGAZINER SAID ALL HEALTH MAINTENANCE ORGANIZATIONS WOULD BE REQUIRED TO OFFER MEMBERS A PLAN THAT ALLOWS THEM TO VISIT A DOCTOR WHO ISN'T ON THE STAFF THE HMO WOULD CHARGE A HIGHER PREMIUM FOR SUCH A PLAN HE SAID BUT THE CHANGE WOULD ALLOW PEOPLE TO SEE A SPECIALIST IN A DIFFERENT PART OF THE COUNTRY IN AN EFFORT TO GUARANTEE ALL AMERICANS HEALTH COVERAGE WITHOUT CREATING AN OPENENDED ENTITLEMENT MR MAGAZINER SAID A CEILING WOULD BE PLACED ON THE TOTAL AMOUNT OF SUBSIDIES GIVEN TO SMALL BUSINESSES AND LOWINCOME INDIVIDUALS TO HELP THEM PAY FOR HEALTH COVERAGE BUT HE SAID IF THE CEILING WERE REACHED THE PLAN WOULD SET UP AN EXPEDITED MECHANISM FOR CONGRESS TO THEN HAVE TO GO BACK AND FIND A WAY TO SECURE EXTRA FUNDING SO THAT WAY YOU FOCUS ATTENTION ON THE PROBLEM OFFICIALS DIDN'T SPECIFY THE SUBSIDY CEILING NONETHELESS THE PROSPECT OF CAPPING THE SUBSIDIES INCENSED SEVERAL LIBERAL LAWMAKERS IF CONGRESS FAILED TO ACT THE POOR AND LOWINCOME WORKERS WOULD GET NO MEDICAL CARE COMPLAINED REP FORTNEY STARK D CALIF WHO HEADS A CRUCIAL HEALTH SUBCOMMITTEE I HAVE A HUNCH THAT WILL BE UNACCEPTABLE REP JIM MCDERMOTT D WASH A LEADER AMONG ADVOCATES OF A SOCALLED SINGLEPAYER HEALTH SYSTEM WAS SIMILARLY SKEPTICAL THAT LAWMAKERS WOULD EMBRACE THE PROSPECT OF BEING FORCED TO CHOOSE BETWEEN RAISING TAXES OR DENYING HEALTH BENEFITS TO THE POOR IT'S LIKE PUTTING A LOADED HAND GRENADE IN YOUR OWN POCKET MR MCDERMOTT SAID AT LAST NIGHT'S BRIEFING MR PANETTA SAID THAT THE BULK OF NEW FUNDING FOR THE CLINTON HEALTH SYSTEM WOULD COME FROM THE NEW REQUIREMENT THAT ALL EMPLOYERS CONTRIBUTE TO THEIR WORKERS' MEDICAL COVERAGE YET THERE WOULD BE COSTS TO THE GOVERNMENT AS WELL AND THE ADMINISTRATION HAS SPENT THE LAST FEW WEEKS REDOING THEIR ESTIMATES IN THIS AREA FROM 1995 THROUGH 2000 MR PANETTA SAID THE SUBSIDIES WOULD COST 116 BILLION AN ENLARGED TAX DEDUCTION FOR SELFEMPLOYED PEOPLE 10 BILLION A NEW DRUG BENEFIT FOR PEOPLE ON MEDICARE 66 BILLION A NEW LONGTERM CARE PROGRAM 65 BILLION AN EXPANSION OF THE PUBLIC HEALTH SYSTEM 29 BILLION AND AN EXTRA CUSHION IN CASE THE SUBSIDIES EXCEED PROJECTIONS 45 BILLION TO PAY FOR THESE THINGS MR PANETTA SAID THE ADMINISTRATION IS EXPECTING TO RAISE 71 BILLION IN TAX REVENUES AS EMPLOYERS CUT THEIR TAXDEDUCTIBLE HEALTH COSTS 40 BILLION FROM SAVINGS IN FEDERAL HEALTH PROGRAMS 65 BILLION FROM INCREASED TAXES ON TOBACCO PRODUCTS 24 BILLION FROM A 1 PAYROLL ASSESSMENT ON CORPORATIONS THAT DON'T JOIN THE REGIONAL HEALTHINSURANCE BUYING POOLS THE CLINTON PLAN WOULD SET UP 124 BILLION FROM REDUCTIONS IN MEDICARE SPENDING AND THE 65 BILLION OF MEDICAID SAVINGS AMONG THE CHANGES RELAYED YESTERDAY TO CONGRESSIONAL STAFFERS ACCORDING TO PEOPLE ATTENDING THE SESSIONS WERE PEOPLE ON WELFARE WOULD HAVE TO PAY ONLY 20 OF THE COSTSHARING REQUIREMENTS OF A HEALTH PLAN FOR EXAMPLE IF THEY WERE ENROLLED IN AN HMO THAT CHARGE 10 FOR A DOCTOR'S VISIT THEY WOULD HAVE TO PAY ONLY 2 DOCTORS WOULD BE PROHIBITED FROM BILLING MEDICARE PATIENTS BEYOND THE AMOUNT THAT THE FEDERAL PROGRAM SPECIFIES BEGINNING IN 2002 THE REQUIRED CONTRIBUTION OF STATE AND LOCAL GOVERNMENTS TOWARD THEIR WORKERS' HEALTH INSURANCE WOULD BE CAPPED AT NO MORE THAN 79 OF PAYROLL THE PLAN ESTABLISHES SUCH A CAP IMMEDIATELY FOR PRIVATE EMPLOYERS BUT ADMINISTRATION OFFICIALS INITIALLY HAD DECIDED AGAINST OFFERING IT TO PUBLIC EMPLOYERS THE PLAN WOULD ESTABLISH A NEW FEDERAL PROGRAM TO PROVIDE TRANSPORTATION AND OTHER EXTRA BENEFITS TO LOWINCOME AND DISABLED CHILDREN WHO HAD BEEN RECEIVING SUCH SERVICES THROUGH THE MEDICAID PROGRAM IT WOULD BE ADMINISTERED BY THE REGIONAL HEALTH INSURANCE PURCHASING POOLS MR MAGAZINER EMPHASIZED TO REPORTERS LAST NIGHT THAT THE ADMINISTRATION WHILE DETERMINED TO STICK TO THE PRINCIPLES IN THE PRESIDENT'S PLAN IS WILLING TO BEND ON THE PARTICULARS WE WON'T VIEW IT AS A DEFEAT OR A RETREAT HE SAID BUT ON CAPITOL HILL SOME MEMBERS OF THE HOUSE DEMOCRATIC LEADERSHIP WERE CRITICAL OF THE ADMINISTRATION'S POLITICAL STRATEGY THEY COMPLAINED THAT CLINTON AIDES FOR PUBLICRELATIONS PURPOSES INITIALLY WANTED TO ASK A LARGE NUMBER OF LAWMAKERS TO FORMALLY COSPONSOR THE LONG COMPLEX PROPOSAL BEFORE THEY HAD SEEN IT WITH MANY RANKANDFILE MEMBERS UNWILLING TO DO SO DEMOCRATIC LEADERS ABANDONED THAT IDEA ROUGHLY 40 HOUSE DEMOCRATS ARE EXPECTED TO ACCOMPANY MR CLINTON WHEN HE INTRODUCES THE BILL THIS MORNINGFEWER THAN HALF THE 89 MEMBERS WHO HAVE COSPONSORED MR MCDERMOTT'S SINGLEPAYER PROPOSAL IN WHICH THE GOVERNMENT WOULD PAY MOST MEDICAL BILLS AND SET HEALTHCARE PRICES THE 40 REPRESENTATIVES INCLUDE A SUBSTANTIAL CONTINGENT OF KEY COMMITTEE CHAIRS AND MEMBERS OF THE LEADERSHIP THEIR POLITICAL OPERATIVES ARE REALLY BUSH LEAGUE SAID MR STARK DECRYING THE SCENE OF ADMINISTRATION ALLIES RUNNING AROUND BEGGING FOR COSPONSORS MR STARK HIMSELF HAS AGREED TO COSPONSOR THE PLAN AT THE REQUEST OF HILLARY RODHAM CLINTON BUT SAID THE ONLY FEATURE HE'S COMMITTED TO IS THE ASSURANCE OF UNIVERSAL HEALTH COVERAGE JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9310270055 931027 TOP HARVARD OFFICIAL SAYS BUSINESS SCHOOL IS FACING MEDIOCRITY DEAN WARNS FINANCIAL STAFFING WORRIES COULD TURN FAMED INSTITUTION INTO ALSORAN' BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL IN A STRIKING ACKNOWLEDGEMENT OF WOES THE DEAN OF HARVARD BUSINESS SCHOOL SAID THE INSTITUTION RISKS BECOMING AN ALSORAN IF IT CAN'T FIX A SERIES OF SEVERE FINANCIAL AND STAFFING PROBLEMS THE DEAN JOHN H MCARTHUR SAID IN A RECENT PRESENTATION THAT THE CELEBRATED SCHOOL FACES A BIG FINANCIAL SHORTFALL THAT WILL REQUIRE SIGNIFICANT NEW EFFORTS TO CUT COSTS AND BOOST REVENUES THE SCHOOL ALSO CAN'T FIND AND RETAIN ENOUGH QUALIFIED YOUNG PROFESSORS TO KEEP THE ENTERPRISE GOING HE SAID OUR COMMUNITY IS FRAGILE VERY FRAGILE THE DEAN SAID ONLY A HAIR LIES BETWEEN OUR BEING SUCCESSFUL SELFCONFIDENT ACHIEVING AND FLOUNDERING MEDIOCRITY MR MCARTHUR'S CANDID REMARKS ARE CONTAINED IN EXCERPTS OF A PRESENTATION HE MADE TO HARVARD'S PRESIDENT NEIL RUDENSTINE DURING A STRATEGIC PLANNING RETREAT IN JUNE HARVARD PROVIDED THE EXCERPTS TO OFFICIALS AT RIVAL YALE UNIVERSITY IN ADVANCE OF A RARE PUBLIC APPEARANCE MR MCARTHUR IS SCHEDULED TO MAKE AT YALE'S NEW HAVEN CONN CAMPUS TODAY A HARVARD BUSINESS SCHOOL SPOKESWOMAN SAID SHE KNEW OF THE DOCUMENT OUTLINING MR MCARTHUR'S REMARKS BUT SHE SAID MR MCARTHUR WASN'T AVAILABLE TO ELABORATE ON IT NOR WERE OTHER OFFICIALS AS MR MCARTHUR RARELY GRANTS INTERVIEWS OR SPEAKS PUBLICLY ABOUT THE SCHOOL HIS COMMENTS OFFER AN UNUSUAL GLIMPSE INTO THE WORKINGS OF ONE OF THE COUNTRY'S BESTKNOWN MANAGEMENT TRAINING GROUNDS LIKE MANY BUSINESS SCHOOLS HARVARD HAS BEEN BESET IN RECENT YEARS BY CRITICS WHO CHARGE THAT ITS MBA PROGRAM IS OUTMODED THE SCHOOL IS NOW REVIEWING ITS CURRICULUM BUT MR MCARTHUR'S REMARKS SUGGEST THAT HARVARD MUST DO MORE THAN TINKER WITH ITS COURSES IT WOULD BE SO EASY FOR OUR COMPETITIVE SITUATION TO CHANGE QUITE SUDDENLY AND DRAMATICALLY MR MCARTHUR SAID WE COULD BECOME AN ALSORAN IN OUR FIELDS OF ACTIVITY ALMOST OVERNIGHT INDEED THIS IS PERHAPS THE MOST LIKELY OUTCOME OVER TIME HE ADDED MAINTAINING HARVARD'S DISTINCTIVENESS REQUIRES RELATIVELY ENORMOUS INVESTMENTS IN STAFF AND PROGRAMS MR MCARTHUR SAID HE SAID SUFFICIENT FUNDING IN GIFTS AND GRANTS WASN'T AVAILABLE FROM ALUMNI GOVERNMENT FOUNDATION OR BUSINESS SOURCES OR EVEN FROM THE BUSINESS SCHOOL'S 450 MILLION ENDOWMENT ALTHOUGH THE UNIVERSITY IS PLANNING A MAJOR FUNDRAISING DRIVE THAT THE BUSINESS SCHOOL MAY PARTICIPATE IN MR MCARTHUR STRESSED THAT THE SCHOOL MUST GET MOST OF ITS FUNDS FROM CURRENT OPERATIONS HE SAID THAT THE SCHOOL HAS BEEN CUTTING COSTS AND SEEKING NEW REVENUES FOR SEVERAL YEARS AND THAT IT CONTINUES TO SEEK NOT INCREMENTAL CHANGES BUT A STEP DOWN OF EXPENSES AND A STEP UP OF REVENUES HE DIDN'T SPECIFY THE SCHOOL'S CURRENT BUDGET BUT IT IS UNDERSTOOD TO TOTAL MORE THAN 110 MILLION HE SAID THE SCHOOL SPENDS MORE THAN 50 MILLION ANNUALLY ON RESEARCH COURSE DEVELOPMENT AND FACULTY DEVELOPMENT AND HAS SPENT NEARLY 1 BILLION ON TEACHING AND RESEARCH IN THE LAST DECADE MR MCARTHUR SAID RAISING FACULTY COMPENSATION IS ONE OF THE SCHOOL'S BIGGEST REQUIREMENTS WE MUST FACE THE FACT THAT RIGHT NOW WE CAN NOT ATTRACT ON A FULLY COMMITTED BASIS EVEN THE VERY SMALL PERCENTAGE OF THE VERY BEST YOUNG PEOPLE IN AMERICA THAT WE NEED TO MAINTAIN EXCELLENCE HE SAID THIS IS A SERIOUS PROBLEM FOR US 9310270053 931027 DAIICHI KANGYO TO WRITE OFF DEBT PRESS REPORTS SAY BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO DAIICHI KANGYO BANK LTD JAPAN'S BIGGEST COMMERCIAL BANK PLANS TO WRITE OFF ABOUT 600 BILLION YEN 552 BILLION IN BAD DEBTS OVER THE NEXT TWO YEARS JAPANESE PRESS REPORTS SAID A SPOKESMAN AT DAIICHI DECLINED TO COMMENT ON THE REPORTS IN THE NIHON KEIZAI SHIMBUN NEWSPAPER AND ON JAPANESE WIRE SERVICES SUCH A WRITEOFF WOULD SIGNIFICANTLY REDUCE THE BANK'S BADDEBT PORTFOLIO OTHERS AMONG JAPAN'S 11 MAJOR COMMERCIAL BANKS HAVE MOVED TO REDUCE THEIR BADLOAN PORTFOLIOS WHICH ANALYSTS ESTIMATE TOTAL ABOUT 14 TRILLION YEN 12891 BILLION THE ACTION BY DAIICHI WOULD MARK THE LATEST SIGN THAT JAPANESE BANKS ARE WRITING OFF DEBT FASTER THAN EXPECTED THE MOVES REFLECT LOW JAPANESE INTEREST RATES AND WIDER SPREADS BETWEEN LOAN RATES AND PAY OUTS ON SAVINGS ACCOUNTS THE BANKS ALSO HAVE BENEFITED FROM A YEARLONG RALLY ON THE JAPANESE BOND MARKET AND AN INCREASE IN STOCK PRICES THE BANKS ALSO APPEAR TO BE TAKING FULL 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 DAVID ATKINSON FINANCIAL ANALYST AT GOLDMAN SACHS JAPAN CORP SAID THE BIGGEST BANKS ARE IN A WRITEOFF WAR RACING TO EXTINGUISH THEIR BAD DEBTS AS A RESULT NONE OF THE BANKS IS A LOSER THEY DON'T HAVE TO PAY SO MUCH IN TAX AND THEY LOSE THE COST OF CARRYING BAD DEBT DAIICHI KANGYO REVISED ITS PROJECTION OF EARNINGS FOR THE YEAR ENDING NEXT MARCH 31 UNCONSOLIDATED ORDINARY EARNINGS ARE PROJECTED TO FALL TO 25 TRILLION YEN FROM 27 TRILLION YEN WHILE PRETAX PROFIT IS EXPECTED TO BE 40 BILLION YEN DOWN FROM 100 BILLION YEN THE BANK EXPECTED NET INCOME TO BE 32 BILLION YEN DOWN FROM 50 BILLION YEN THE DROP IN RESULTS MAY REFLECT LOWER LOAN REVENUE AN INCREASE IN LOAN DEFAULTS OR A DROP IN OVERSEAS EARNINGS DUE TO THE STRONGER YEN THE DROP IN PROFIT LIKELY REFLECTS THE GREATER EMPHASIS ON LOAN WRITEOFFS ALICIA OGAWA FINANCIAL ANALYST AT SALOMON BROTHERS ASIA LTD SAID THE NARROWER DIFFERENCE BETWEEN PRETAX PROFIT AND NET INCOMEA DIFFERENCE OF EIGHT BILLION YEN VS 50 BILLION YEN IN DAIICHI EARLIER PROJECTIONMEANS A MUCH BIGGER WRITE OFF THROUGH THE GOVERNMENT'S BADDEBT AGENCY IT'S A VERY GOOD THING FOR THE ECONOMY MS OGAWA SAID THE BANK IS IN A MUCH BETTER POSITION TO MAKE LOANS AGAIN 9310270052 931027 BUSINESS BRIEF AIRBUS INDUSTRIE MANAGING DIRECTOR URGES NEW CORPORATE STRUCTURE FACED WITH DISASTROUS SALES RESULTS THIS YEAR EUROPE'S AIRBUS INDUSTRIE NEEDS A NEW CORPORATE STRUCTURE THAT WILL ALLOW IT TO PREPARE FOR AN EVENTUAL UPSWING IN THE AIRCRAFT MARKET MANAGING DIRECTOR JEAN PIERSON SAID AT PRESENT THE AIRBUS CONSORTIUM ENJOYS A SPECIAL CORPORATE STATUS IN FRANCE THAT ALLOWS COMPANIES TO OPERATE IN A LOOSE PARTNERSHIP WITHOUT PUBLISHING ACCOUNTS MR PIERSON SPEAKING AT A TECHNOLOGY CONFERENCE IN TOULOUSE WHERE AIRBUS IS BASED SAID THE ARRANGEMENT HAS ATTAINED ITS GENETIC LIMITS IF THINGS DON'T CHANGE MR PIERSON WARNED CUSTOMERS WON'T RETURN LOSSES WILL MOUNT AND WE'LL GO OUT OF BUSINESS A STRUCTURAL EVOLUTION WITHIN AIRBUS ISN'T A NEW IDEA IN JUNE DICK EVANS CHAIRMAN OF AIRBUS PARTNER BRITISH AEROSPACE PLC SUGGESTED TURNING THE CONSORTIUM INTO A REAL CORPORATION THE OTHER AIRBUS PARTNERS ARE AEROSPATIALE OF FRANCE CONSTRUCCIONES AERONAUTICAS SA OF SPAIN AND DEUTSCHE AEROSPACE AIRBUS GMBH A UNIT OF GERMANY'S DAIMLERBENZ AG 9310270051 931027 INTERNATIONAL BRIEF THAMES WATER PLC PRETAX PROFIT DECLINES 97 SPECIAL PROVISIONS BLAMED BRITISH WATER COMPANY THAMES WATER PLC SAID PRETAX PROFIT FOR THE SIX MONTHS ENDED SEPT 30 FELL 97 TO 112 MILLION 166 MILLION IT ATTRIBUTED THE DECLINE TO PROVISIONS AGAINST TWO LONGSTANDING CONTRACTUAL DISPUTES AND FOR THE REORGANIZATION OF SOME US UNITS PROFIT FOR THE YEAREARLIER PERIOD WAS 124 MILLION SALES ROSE 74 TO 539 MILLION FROM 502 MILLION THE COMPANY RAISED ITS DIVIDEND 72 TO 74 PENCE 109 CENTS A SHARE BASED ON WHAT GROUP CHAIRMAN SIR CHRISTOPHER LEAVER CALLED GOOD PROGRESS HE NOTED THAT EXCLUDING THE 25 MILLION IN PROVISIONS PRETAX PROFIT ROSE 10 TO 137 MILLION THAMES WATER IS ONE OF THE 10 REGIONAL WATER UTILITIES THAT WERE PRIVATIZED BY THE GOVERNMENT IN 1989 9310270049 931027 BUSINESS BRIEF CUMMINS ENGINE CO JOINTVENTURE AGREEMENT WITH KOMATSU IS REACHED CUMMINS ENGINE CO SAID IT COMPLETED AN AGREEMENT WITH KOMATSU LTD OF JAPAN UNDER WHICH JOINT VENTURES WILL PRODUCE ENGINES IN THE US AND JAPAN CUMMINS COLUMBUS IND SAID KOMATSU WILL PRODUCE CUMMINS'S MIDRANGE DIESEL ENGINES IN OYAMA JAPAN BEGINNING IN 1996 ANNUXPECTED TO REACH 40000 ENGINES A FEW YEARS AFTER THAT THE ENGINES WILL BE USED IN A VARIETY OF KOMATSU'S CONSTRUCTIONEQUIPMENT MODELS THE RESULT SAID JACK EDWARDS A CUMMINS VICE PRESIDENT WILL BE A MORE EFFECTIVE PARTNERSHIP TO COMPETE AGAINST CATERPILLAR CATERPILLAR INC PEORIA ILL IS A MAJOR MANUFACTURER OF CONSTRUCTION EQUIPMENT KOMATSU'S 30LITER DIESEL ENGINES USED IN LARGE GENERATORS WILL BE MADE IN SEYMOUR IND WITH PRODUCTION REACHING 2000 ENGINES A YEAR BY THE END OF THE DECADE 9310270047 931027 FOREIGN EXCHANGE DOLLAR DRIFTS LOWER AGAINST MARK YEN ON US CONSUMER CONFIDENCE DECLINE BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR DRIFTED LOWER AGAINST THE MARK AND YEN TUESDAY AFTER A DISAPPOINTING US CONSUMER SURVEY SAPPED SOME OF THE CONFIDENCE OF DOLLAR BULLS BUT THE US UNIT WAS STILL ABLE TO GAIN SHARPLY VERSUS ITS CANADIAN COUNTERPART WHICH WAS HIT BY A SELLOFF AFTER THE LIBERAL PARTY'S LANDSLIDE ELECTION VICTORY OVER THE RULING CONSERVATIVES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16788 MARKS DOWN FROM 16860 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10830 YEN DOWN FROM 10858 YEN STERLING WAS TRADING AT 14795 UP SLIGHTLY FROM 14780 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10834 YEN AND AT 16785 MARKS TRADERS SAID THAT A DISAPPOINTING REPORT ON US CONSUMER CONFIDENCE RELEASED DURING THE NEW YORK MORNING TOOK MUCH OF THE STEAM OUT OF THE DOLLAR TUESDAY AFTER A STRONG RALLY BEGUN LAST WEEK HAD PROPELLED IT TO ITS HIGHEST LEVELS SINCE AUGUST BUT THEY ADDED THAT THE DOLLAR DIDN'T FALL VERY FAR BEFORE INVESTORS EMERGED TO BUY IT BACK AGAIN THAT BUYING BOOSTED IT FROM ITS INTRADAY LOW OF 16765 MARKS JUST AFTER THE CONSUMER CONFIDENCE REPORT TO LEAVE THE US CURRENCY ONLY SLIGHTLY LOWER ON THE DAY THE CONFERENCE BOARD SAID THAT ITS OCTOBER INDEX OF CONSUMER CONFIDENCE FELL TO 594 FROM A REVISED 638 IN SEPTEMBER MOST MARKET WATCHERS HAD EXPECTED A RISE IN THE INDEX TO ABOUT 65 THE BOARD'S CONSUMER EXPECTATIONS INDEX MEANWHILE ALSO DECLINED TO 654 FROM 728 IN SEPTEMBER OBVIOUSLY THE NUMBERS WEREN'T VERY GOOD VERSUS PROJECTIONS SAID JACK GRIFFEN VICE PRESIDENT CORPORATE FOREIGN EXCHANGE AT FUJI BANK LTD IN NEW YORK MR GRIFFEN NOTED PARTICULARLY THAT THE CONSUMER EXPECTATIONS NUMBER DIDN'T AUGUR WELL FOR THE FUTURE BUT HE AND OTHER TRADERS EMPHASIZED THAT THE REPORT DIDN'T PRECIPITATE A SHARP SELLOFF EVEN THOUGH MANY PLAYERS HAVE BEEN PREDICTING THAT THE DOLLAR IS SET FOR A SHORTTERM DECLINE AFTER ITS STRONG RALLY AGAINST THE GERMAN CURRENCY THE DOLLAR HAS RISEN ABOUT EIGHT PFENNIGS AGAINST THE MARK SINCE MIDOCTOBER ON EXPECTATIONS OF A STRONGER US RECOVERY AND CUTS IN EUROPEAN INTEREST RATES THE DOLLAR SEEMS TO BE JAMMED BETWEEN PEOPLE WHO WANT TO BUY ON ANY DIPS AND PEOPLE WHO THINK THAT THIS EIGHTPFENNIG RALLY IS DUE FOR A CORRECTION SAID STEVEN WALKER A DEALER AT UNIBANK A/S IN NEW YORK TRADERS GENERALLY AGREED THAT UNTIL NEW READINGS OF THE STRENGTH OF THE US RECOVERY EMERGE THAT LOGJAM IS LIKELY TO KEEP THE DOLLAR BOXED INTO A NARROW RANGE AGAINST BOTH THE DOLLAR AND THE YEN THEY SAID THE DOLLAR DOESN'T SEEM STRONG ENOUGH TO BREAK ABOVE 16875 MARKS OR 10880 YEN FOR THE TIME BEING ALTHOUGH THEY ADDED THAT ENTHUSIASTIC BUYING INTEREST SEEMS TO EMERGE WHENEVER THE DOLLAR NEARS THE LEVELS OF 16770 MARKS AND 108 YEN MEANWHILE TRADERS NOTED THAT THE US DOLLAR INITIALLY LOST ABOUT ONE CANADIAN CENT AS THE ELECTION PROJECTIONS ROLLED IN SHOWING THE OPPOSITION LIBERAL PARTY WELL AHEAD IN EARLY RETURNS ONCE PLAYERS DIGESTED THE RESULTS AND SAW THAT THE BLOC QUEBECOIS A PARTY THAT ADVOCATES QUEBEC'S SECESSION FROM CANADA CAME IN WITH A STRONG SECONDPLACE SHOWING RELIEF TURNED TO CONCERN OVER THE SEPARATISTS' ROLE AS THE OFFICIAL OPPOSITION IN CANADA'S PARLIAMENT AND THE US CURRENCY ADVANCED 9310270046 931027 INTERNATIONAL BRIEF FANUC LTD PRETAX PROFIT DROPS 28 REFLECTING JAPANESE WOES FANUC LTD A MAJOR JAPANESE FACTORY AUTOMATION EQUIPMENT AND ROBOT MAKER REPORTED THAT ITS UNCONSOLIDATED PRETAX PROFIT FOR THE FISCAL FIRST HALF ENDED SEPT 30 PLUNGED 28 FROM A YEAR EARLIER TO 1164 BILLION YEN 107 MILLION HOLDING BACK PRETAX PROFIT IN THE LATEST PERIOD WAS A DECLINE IN SALES WHICH REFLECTED THE AILING ECONOMY UNDER WHICH THE JAPANESE HAVE CURBED OUTLAYS ON PLANT AND EQUIPMENT A FANUC OFFICIAL SAID IN ADDITION LOWER INTEREST RATES REDUCED FANUC'S FINANCIAL REVENUE HE SAID THE COMPANY SAID SALES OF COMPUTERIZED NUMERICALLY CONTROLLED SYSTEMS THE LARGEST LINE OF FANUC'S SALES ACCOUNTING FOR 59 OF OVERALL SALES WERE DOWN 11 TO 3338 BILLION YEN FROM 3743 BILLION IN THE YEAREARLIER HALF SALES OF ROBOTS ACCOUNTING FOR 21 OF OVERALL SALES WERE OFF 10 TO 1194 BILLION YEN FROM 1329 BILLION 9310270045 931027 TECHNOLOGY BRIEF COMPAQ COMPUTER CORP EARLY PRESARIO SALES OUTSTRIP LAST YEAR'S PROLINEA LAUNCH COMPAQ COMPUTER CORP DECLARED ITS PRESARIO LINE OF HOME COMPUTERS ITS MOST SUCCESSFUL PRODUCT LAUNCH SURPASSING LAST YEAR'S INTRODUCTION OF ITS PROLINEA LINE THE COMPANY WOULDN'T PROVIDE NUMBERS BUT SAID IT SOLD TWICE AS MANY UNITS OF THE PRESARIO 425 MODEL IN ITS FIRST 60 DAYS AS IT DID OF THE PROLINEA 3/25 A PERSON CLOSE TO THE COMPANY ESTIMATED THE PERIOD'S UNIT SALES FOR THE PRESARIO AT 100000 SOME OF THE DIFFERENCE REFLECTS INCREASED PRODUCTION WHEN PROLINEA WAS INTRODUCED COMPAQ UNDERESTIMATED DEMAND THE PROLINEA LINE WAS MARKETED FOR BOTH HOME AND BUSINESS USE BUT RICHARD ZWETCHKENBAUM AN ANALYST WITH MARKET RESEARCHER INTERNATIONAL DATA CORP SAID PRESARIO SALES ALSO REFLECT ITS ONEPIECE DESIGN THE FACT THAT COMPAQ IS HITTING THE RIGHT PRICE POINTS AND AN AGGRESSIVE MARKETING CAMPAIGN 9310270044 931027 BUSINESS BRIEF ARMSTRONG WORLD INDUSTRIES INC FIRM POSTS 3RDPERIOD PROFIT OF 423 MILLION ON FLAT SALES ARMSTRONG WORLD INDUSTRIES INC RETURNED TO PROFITABILITY FOR THE THIRD QUARTER DUE MAINLY TO LOWERED COSTS AND TO GROWTH IN SEVERAL UNITS AS WELL AS THE EFFECT OF A CHARGE IN THE YEAREARLIER PERIOD THE LANCASTER PA COMPANY REPORTED NET INCOME OF 423 MILLION OR 93 CENTS A SHARE UP FROM A YEAREARLIER LOSS OF 807 MILLION OR 226 A SHARE INCLUDING A RESTRUCTURING CHARGE OF 952 MILLION ARMSTRONG PRODUCES AND MARKETS INTERIOR FURNISHINGS SALES WERE 6601 MILLION ESSENTIALLY FLAT FROM A YEAREARLIER 6596 MILLION IN COMPOSITE BIG BOARD TRADING YESTERDAY ARMSTRONG CLOSED AT 4550 A SHARE UP 1125 A 25 GAIN 9310270043 931027 BUSINESS BRIEF JONES APPAREL GROUP INC STRONG CAREER APPAREL SALES SPARK 13 INCREASE IN PROFIT JONES APPAREL GROUP INC SAID FISCAL THIRDQUARTER NET INCOME ROSE 13 REFLECTING STRONG SALES OF WOMEN'S CAREER APPAREL IN THE PERIOD ENDED OCT 3 THE NEW YORK APPAREL MAKER SAID NET ROSE TO 196 MILLION OR 75 CENTS A SHARE FROM 174 MILLION OR 67 CENTS A SHARE A YEAR EARLIER SALES CLIMBED 19 TO 1657 MILLION FROM 1387 MILLION JONES APPAREL SHARES SLIPPED 1 TO 2950 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9310270042 931027 BUSINESS BRIEF ALDUS CORP NET INCOME GREW FOURFOLD DURING THE THIRD QUARTER ALDUS CORP REBOUNDING FROM A STRING OF SLUGGISH QUARTERS REPORTED A FOURFOLD INCREASE IN THIRDQUARTER NET INCOME ON STRONG SALES OF THE NEW VERSION OF ITS DESKTOPPUBLISHING PROGRAM THE SEATTLE SOFTWARE CONCERN SAID NET INCOME WAS 43 MILLION OR 32 CENTS A SHARE COMPARED WITH 1 MILLION OR SEVEN CENTS A SHARE A YEAR EARLIER THE EARNINGS INCREASE ALDUS SAID REFLECTS STRONG SALES OF THE NEW VERSION OF ITS PAGEMAKER SOFTWARE SALES IN THE QUARTER ROSE 37 TO 622 MILLION FROM 453 MILLION A YEAR EARLIER REVENUE FROM UPGRADES OR PROGRAMS SOLD TO EXISTING SOFTWARE USERS TOTALED 161 MILLION EARNINGS WERE JUST ABOVE THE HIGH END OF ANALYSTS' ESTIMATES WHICH RANGED FROM 21 CENTS A SHARE TO 31 CENTS A SHARE ALDUS SHARES CLOSED AT 24 UP 150 OR 67 IN NATIONAL OVERTHECOUNTER TRADING 9310270041 931027 BUSINESS BRIEF VINTAGE PETROLEUM INC OIL GAS PROPERTIES BOUGHT FOR A TOTAL OF 664 MILLION VINTAGE PETROLEUM INC HOUSTON SAID IT BOUGHT CERTAIN OIL AND GAS PROPERTIES AND GATHERING SYSTEMS IN TWO TRANSACTIONS VALUED AT 664 MILLION VINTAGE SIGNED A DEFINITIVE AGREEMENT WITH SANTA FE ENERGY RESOURCES INC AND SOME AFFILIATES TO BUY CERTAIN SOUTHERN CALIFORNIA AND GULF COAST OIL AND GAS PRODUCING PROPERTIES FOR 48 MILLION THE EFFECTIVE DATE OF THE PURCHASE IS MAY 1 OF THIS YEAR WITH THE CLOSING SCHEDULED FOR NOV 10 PROFITS FROM THE OPERATION EARNED BETWEEN THE EFFECTIVE DATE AND THE CLOSING WILL BE SUBTRACTED FROM THE PURCHASE PRICE CURRENT DAILY PRODUCTION OF THE PROPERTIES IS ABOUT 3000 BARRELS OF OIL AND 6000 MILLION CUBIC FEET OF GAS SEPARATELY VINTAGE SAID IT REACHED AGREEMENT WITH PRUDENTIAL INSURANCE CO OF AMERICA TO INCREASE ITS OWNERSHIP IN CERTAIN OIL AND GAS PROPERTIES AND GATHERING SYSTEMS BY BUYING THE SOLE LIMITEDPARTNERSHIP INTEREST IN VINTAGE/P ACQUISITION LP FOR 184 MILLION IN CASH AND STOCK 9310270040 931027 INTERNATIONAL BRIEF AB VOLVO HIGHER PROFIT IS SEEN IN PLAN FOR RENAULT MERGER OFFERING AB VOLVO IN THE OFFERING PROSPECTUS FOR ITS PLANNED MERGER WITH RENAULT SA OF FRANCE PREDICTED THE MARRIAGE WOULD SPUR SIGNIFICANTLY HIGHER PROFITABILITY THAN EITHER COMPANY HAS MANAGED ON ITS OWN DURING THE PAST FIVE YEARS BUT VOLVO ADMITTED SHAREHOLDERS WOULD HAVE TO BE PATIENT DURING THE INITIAL YEARS OF THE MERGED RENAULTVOLVO RVA RESTRUCTURING COSTS ALMOST CERTAINLY WOULD EXCEED PROFIT GAINS VOLVO CLAIMED THAT MERGED CAR AND TRUCK OPERATIONS AT RENAULTVOLVO RVA WOULD ACHIEVE AN AVERAGE ANNUAL PROFIT MARGIN OF 7 BASED ON PROJECTED PROFORMA SALES FOR RENAULTVOLVO OF 246 BILLION 4186 MILLION FRENCH FRANCS THAT AVERAGE MARGIN WOULD TRANSLATE TO OPERATING PROFIT OF 172 BILLION FRANCS THE PROSPECTUS HAD BEEN EAGERLY AWAITED AS MANY INVESTORS HAVE BEEN WAVERING IN THEIR SUPPORT OF THE COMPLICATED TRANSACTION UNSURE OF WHAT IT WOULD REALLY AMOUNT TO 9310270039 931027 BUSINESS BRIEF SOUTHLAND CORP CONVENIENCE STORE OPERATOR POSTS SECOND PROFIT IN ROW SOUTHLAND CORP REPORTED ITS SECOND PROFITABLE QUARTER IN A ROW AFTER TWO YEARS OF LOSSES DESPITE A DECLINE IN REVENUE THE DALLAS OPERATOR OF 7ELEVEN CONVENIENCE STORES SAID IT HAD EARNINGS OF 1207 MILLION OR 29 CENTS A SHARE IN THE THIRD QUARTER COMPARED WITH A LOSS OF 392 MILLION OR 10 CENTS A SHARE A YEAR EARLIER REVENUE FELL 74 TO 18 BILLION FROM 2 BILLION A YEAR EARLIER WHEN SOUTHLAND HAD 440 MORE STORES THE COMPANY ALSO CITED LOWER AVERAGE GASOLINE AND CIGARETTE PRICES FOR THE REVENUE DROP THE LATEST RESULTS BENEFITED FROM A SPECIAL GAIN OF 99 MILLION OR 24 CENTS A SHARE FROM THE REDEMPTION OF 12 SENIOR NOTES AUG 30 THAT WAS PARTLY OFFSET BY A 10 MILLION EXPENSE RELATED TO THE ANTICIPATED DISPOSITION OF CITIJET A GENERAL AVIATION FACILITY THE PREVIOUS YEAR'S NET INCLUDED A 41 MILLION PRETAX LOSS FROM THE DISPOSITION OF THE COMPANY'S DISTRIBUTION AND FOOD PROCESSING BUSINESS SALES AT STORES OPEN MORE THAN A YEAR DECLINED 26 IN THE QUARTER 9310270038 931027 INTERNATIONAL BRIEF TELEFONOS DE MEXICO SA NINEMONTH NET ROSE 17 ON AN 18 REVENUE INCREASE TELEFONOS DE MEXICO SA THE MEXICAN TELEPHONE MONOPOLY REPORTED THAT NET INCOME ROSE ABOUT 17 IN THE FIRST NINE MONTHS TO 659 BILLION NEW PESOS 222 BILLION AT THE HIGH END OF ANALYSTS' EXPECTATIONS REVENUE ROSE 18 TO 1792 BILLION NEW PESOS ANALYSTS AT SERFIN SECURITIES IN NEW YORK SAID THE BETTERTHANEXPECTED EARNINGS PARTLY REFLECT AN UNEXPECTED GAIN RELATED TO SOME DEBT DENOMINATED IN FOREIGN CURRENCIES TELMEX ISSUING A BRIEF NEWS RELEASE DIDN'T EXPLAIN REASONS FOR ITS RESULTS AND DIDN'T RELEASE THIRDQUARTER FIGURES WHICH ARE HARD TO DETERMINE BECAUSE IT ADJUSTS FOR INFLATION WITHOUT IDENTIFYING THE RATE IT USES TELMEX STOCK ROSE 18 CENTAVOS TO 868 NEW PESOS AMID SPECULATION OF THE HIGHERTHANEXPECTED EARNINGS THE REAL QUESTION HANGING OVER THE STOCK HOWEVER IS WHETHER THE US CONGRESS WILL APPROVE THE NORTH AMERICAN FREE TRADE AGREEMENT 9310270037 931027 BUSINESS BRIEF H&R BLOCK INC FIRM WEIGHS SALE OF INTERIM THROUGH A PUBLIC OFFERING H&R BLOCK INC KANSAS CITY MO SAID IT IS WEIGHING THE SALE THROUGH A PUBLIC OFFERING OF ITS INTERIM SERVICES INC TEMPORARYSERVICES UNIT THE TAXPREPARATION CONCERN SAID IT PLANS TO FILE A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION IN EARLY NOVEMBER COVERING THE POSSIBLE OFFERING DIVESTITURE OF THE INTERIM SERVICES OPERATION WHICH HAD OPERATING EARNINGS IN THE FISCAL YEAR ENDED MARCH 31 OF 194 MILLION ON REVENUE OF 451 MILLION WOULD ALLOW BLOCK TO FOCUS ON ITS H&R BLOCK TAX SERVICES INC UNIT AS WELL AS ITS COMPUSERVE INC COMPUTERSERVICES BUSINESS IT SAID 9310270036 931027 BUSINESS BRIEF HONDA MOTOR CO BASE PRICES OF ACCORD COUPE MODELS FOR 1994 ARE LISTED HONDA MOTOR CO SAID THE BASE STARTING PRICE OF THE REDESIGNED 1994 ACCORD DX COUPE IS UNCHANGED AT 14130 THE BASE PRICE OF THE ACCORD LX COUPE IS NOW 17030 UP 18 OR 300 FROM THE 1993 PRICE THE TOPOFTHELINE EX COUPE WHICH COMES WITH LEATHER INTERIOR AND A MORE POWERFUL VTEC ENGINE NOW COSTS 20600 THAT SPECIFIC COUPE WASN'T AVAILABLE AS A 1993 MODEL THE AUTO MAKER BASED IN TORRANCE CALIF SAID ALL 1994 COUPE MODELS COME EQUIPPED WITH DUAL AIRBAGS ADDITIONALLY ANTILOCK BRAKES ARE NOW STANDARD ON THE TOPOFTHELINE EX COUPE AND OPTIONAL ON THE DX AND LX MODELS HONDA UNVEILED THE ALLNEW ACCORD SEDAN MODELS IN SEPTEMBER WITH PRICE INCREASES ONLY AS MUCH AS 24 OR 400 9310270035 931027 TECHNOLOGY BRIEF CISCO SYSTEMS INC PACT IS SET WITH MICROSOFT TO JOINTLY DEVELOP PRODUCTS CISCO SYSTEMS INC AND MICROSOFT CORP SAID THEY AGREED TO DEVELOP PRODUCTS COMBINING MICROSOFT'S COMPUTER OPERATING SYSTEMS WITH CISCO'S NETWORKING EQUIPMENT UNDER THE AGREEMENT CISCO MENLO PARK CALIF WILL DEVELOP A VERSION OF ITS ROUTERS DEVICES THAT CONDUCT DATA TRAFFIC AMONG COMPUTER NETWORKS FOR MICROSOFT'S WINDOWS NT OPERATING SYSTEM THE NEW CISCO PRODUCT WHICH WILL TAKE THE FORM OF A CIRCUIT BOARD TO BE PLUGGED INTO A PERSONAL COMPUTER WILL BE AVAILABLE IN THE FIRST HALF OF 1994 THE COMPANIES SAID THE CISCO AGREEMENT COMES AS PART OF A BROAD PUSH BY MICROSOFT REDMOND WASH TO GET LEADING COMPUTERNETWORKING CONCERNS SUCH AS CISCO TO ADAPT THEIR TECHNOLOGIES TO WINDOWS NT MICROSOFT'S FIRST SERIOUS FORAY INTO THE FIELD OF OPERATING SYSTEMS THAT WORK ACROSS NETWORKS OF COMPUTERS INSTEAD OF JUST ON SINGLE PCS 9310270034 931027 BUSINESS BRIEF SCOTTS CO AGREEMENT IS SET TO PURCHASE GRACE UNIT FOR 120 MILLION SCOTTS CO MARYSVILLE OHIO SAID IT AGREED TO ACQUIRE GRACESIERRA HORTICULTURAL PRODUCTS CO FROM WR GRACE & CO FOR 120 MILLION THE PROPOSED ACQUISITION SUBJECT TO REGULATORY APPROVALS WOULD MAKE SCOTTS THE LARGEST TURF AND HORTICULTURAL PRODUCTS CONCERN WITH 575 MILLION TO 600 MILLION IN ANNUAL SALES SCOTTS SAID CURRENTLY ABOUT 25 OF SCOTTS'S SALES ARE TO PROFESSIONAL MARKETS AND THE REST ARE TO INDIVIDUAL CONCERNS GRACE SELLS MOSTLY TO PROFESSIONAL MARKETS SUCH AS GOLF COURSES AFTER THE ACQUISITION 30 TO 40 OF SCOTTS'S TOTAL SALES WOULD BE TO THE PROFESSIONAL MARKET THE ACQUISITION EXPECTED TO CLOSE BY YEAR'S END WON'T AFFECT EARNINGS FOR THE FISCAL FOURTH QUARTER ENDED SEPT 30 EARNINGS WILL BE REPORTED IN EARLY NOVEMBER 9310270033 931027 NEW USMEXICO DEVELOPMENT BANK MAY AID PROJECTS AWAY FROM BORDER BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION HAS DECIDED TO DEVOTE ABOUT 200 MILLION OF THE FUNDS FROM A NEW USMEXICO BORDERDEVELOPMENT BANK TO US COMMUNITYDEVELOPMENT PROJECTS EVEN IF THEY ARE AWAY FROM THE BORDER THE DECISION REPRESENTS AN OVERTURE TO THE HISPANIC COMMUNITY WHICH SO FAR HAS BEEN LUKEWARM IN ITS REACTION TO THE NORTH AMERICAN FREE TRADE AGREEMENT TODAY TWO MAJOR HISPANIC GROUPS THE NATIONAL COUNCIL OF LA RAZA AND THE SOUTHWEST VOTER REGISTRATION INSTITUTE WHICH HAD BEEN PUSHING FOR MORE COMMUNITYDEVELOPMENT FUNDS PLAN TO ENDORSE THE TRADE PACT AND REP ESTEBAN TORRES D CALIF A NAFTA CRITIC WITH DEEP ROOTS IN THE LATINO COMMUNITY ALSO MAY BACK THE PACT THE LAWMAKER DIDN'T RETURN CALLS SEEKING COMMENT THE BORDERDEVELOPMENT BANK ORIGINALLY WAS CONCEIVED BY THE ADMINISTRATION TO FINANCE THE CLEANUP OF THE HEAVILY POLLUTED USMEXICO BORDER THE TWO COUNTRIES WOULD CAPITALIZE THE BANK EQUALLY WITH 450 MILLION OVER FOUR YEARS THE BANK WOULD THEN BORROW A PROJECTED 2 BILLION TO 3 BILLION FROM INTERNATIONAL CAPITAL MARKETS WHILE THE BANK WAS SEEN AS A PLUS ENVIRONMENTALLY IT WAS CRITICIZED POLITICALLY BECAUSE ALMOST ALL THE PROJECTS IT FINANCED WOULD BE IN MEXICO THE SOURCES OF BORDER POLLUTION GENERALLY RESIDE SOUTH OF THE BORDER AND EMIT POLLUTANTS INTO RIVERS THAT FLOW NORTH REP TORRES AND OTHERS HAVE BEEN PRESSING THE ADMINISTRATION TO USE THE FUNDS TO HELP ECONOMICALLY DEPRESSED AREAS WHERE COMPANIES HAVE MOVED TO MEXICO OFFICIALS EXPECT A GOOD CHUNK OF THE NEW LENDING TO GO TO LOWINCOME PREDOMINANTLY HISPANIC AREAS WHICH HAVE SEEN A NUMBER OF COMPANIES MOVE TO MEXICO UNDER THE REVISED PLAN WHICH ALSO IS BACKED BY MEXICO THE TWO COUNTRIES EACH COULD DEVOTE ROUGHLY 200 MILLION IN LENDING TO COMMUNITYDEVELOPMENT PROJECTS ON OR AWAY FROM THE BORDER ONE OFFICIAL SAID THE US FUNDS THEN COULD BE LEVERAGED FURTHER BY ACTING AS SEED MONEY TO ATTRACT OTHER FUNDS HE ESTIMATED THAT COMMUNITYDEVELOPMENT FUNDS COULD GROW TO 1 BILLION OVER TIME BUT EARMARKING ENVIRONMENTAL FUNDS FOR COMMUNITY GRANTS COULD TURN THE DEVELOPMENT BANK INTO A SOURCE OF POLITICAL PORK ECONOMICALLY DEPRESSED COMMUNITIES AWAY FROM THE BORDER WOULD HAVE AN INCENTIVE TO CLAIM THAT THE SOURCE OF THEIR WOES IS JOB FLIGHT TO MEXICO IN ORDER TO QUALIFY FOR BORDERBANK GRANTS SEPARATELY THE QUESTION OF REPLACING THE TARIFF REVENUE THAT WOULD BE LOST UNDER NAFTA REMAINED UNRESOLVED THE ADMINISTRATION IS PUSHING A PACKAGE TO RAISE NEARLY 3 BILLION OVER FIVE YEARS THROUGH A MIX OF HIGHER CUSTOMS FEES FOR AIRLINE AND CRUISESHIP TRAVELERS REDUCED FARM SUBSIDIES AND A BANK ACCOUNTING MANEUVER BUT THE PASSENGER TAX IS OPPOSED BY KEY HOUSE REPUBLICANS WHOSE SUPPORT FOR NAFTA IS CRUCIAL NAFTA CRITICS SUGGESTED THE REVENUE SNAG COULD BE EVEN MORE SERIOUS IN THE SENATE HOUSE BUDGET RULES REQUIRE A MEASURE THAT LOSES REVENUE AS NAFTA WOULD TO INCLUDE ENOUGH OFFSETTING TAX INCREASES OR SPENDING CUTS SO THAT IT WOULDN'T ADD TO THE DEFICIT OVER THE FIVEYEAR PERIOD USED FOR BUDGET ACCOUNTING BUT A SENATE RULE NEW THIS YEAR WOULD ALLOW NAFTA FOES TO RAISE PARLIAMENTARY OBJECTIONS IF THE LEGISLATION IMPLEMENTING THE ACCORD ISN'T DEFICITNEUTRAL OVER 10 YEARS TOP REPUBLICAN AND DEMOCRATIC SENATE STAFFERS SAY THEY SEE LITTLE THREAT TO THE TRADE ACCORD IF SENATORS THINK THE ADMINISTRATION'S FINAL PROPOSALS FOR REVENUERAISERS ARE CREDIBLE FOR THE USUAL FIVEYEAR PERIOD NAFTA FOES STILL COULD OBJECT NOTING THAT NAFTA LOSES MORE MONEY IN LATER YEARS BECAUSE IT PHASES OUT TARIFFS WITH MEXICO AND CANADA OVER 15 YEARS BUT THE SENATE RULE LEAVES MUCH DISCRETION TO THE PARLIAMENTARIAN AND TO BUDGET COMMITTEE CHAIRMAN JAMES SASSER D TENN ALTHOUGH SEN SASSER IS UNDECIDED ON NAFTA AND LEANING AGAINST IT HE PROBABLY WOULDN'T SUPPORT A BUDGETARY OBJECTION TO THE ACCORD IF THE FIVEYEAR PROVISIONS ARE ADEQUATE JACKIE CALMES CONTRIBUTED TO THIS ARTICLE 9310270032 931027 GRUMMAN GETS US CONTRACT BETHPAGE NY GRUMMAN CORP SAID IT RECEIVED A 118 MILLION AIR FORCE CONTRACT TO PRODUCE AN AUTOMATED TEST SYSTEM FOR MCDONNELL DOUGLAS CORP'S F15 FIGHTER THE SYSTEM IS DESIGNED TO DETECT FAULTS IN VARIOUS ELECTRONIC SYSTEMS ABOARD THE MILITARY FIGHTERS THE AEROSPACE CONCERN SAID IT WILL SUPPLY 60 TESTERS AND PROVIDE DIAGNOSTIC SOFTWARE CAPABILITY FOR 97 ELECTRONIC ASSEMBLIES THROUGH 1999 IF ALL CONTRACT OPTIONS ARE EXERCISED 9310270031 931027 INTERNATIONAL MIELKE IS CONVICTED OF 1931 MURDERS OF BERLIN POLICEMEN BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN ERICH MIELKE THE LONGTIME CHIEF OF EAST GERMANY'S SECRET POLICE WAS CONVICTED ON TWO COUNTS OF MURDER AND ONE OF ATTEMPTED MURDER THE KILLINGS OF TWO BERLIN POLICEMEN OCCURRED IN 1931 DURING THE STREETFIGHTING OF THE WEIMAR REPUBLIC CITING HIS AGE AS AN EXTENUATING CIRCUMSTANCE THE COURT SENTENCED THE 85YEAROLD MR MIELKE TO SIX YEARS IN PRISON HIS LAWYERS SAID THEY INTEND TO APPEAL THE COURT WILL ALSO RULE IN NOVEMBER ON A MOTION TO FREE MR MIELKE ON HEALTH GROUNDS THE 20MONTH TRIAL HAS BEEN CONTROVERSIAL BECAUSE MR MIELKE IS CONSIDERED ONE OF THE CHIEF MALEFACTORS OF THE OLD COMMUNIST REGIME MANY GERMANS HAVE CRITICIZED THE PROCEEDINGS ARGUING THAT WHATEVER CRIMES MR MIELKE MAY HAVE COMMITTED AS A COMMUNIST ACTIVIST IN HIS TWENTIES THEY WERE NOWHERE NEAR AS SIGNIFICANT AS HIS DEEDS AS MINISTER FOR STARITY IN THE GERMAN DEMOCRATIC REPUBLIC HE PRESIDED OVER A NETWORK OF MORE THAN 100000 INFORMERS AND WOULD HAVE BEEN TRIED FOR THE SHOOTTOKILL ORDERS AT THE BERLIN WALL HAD HE NOT ALREADY BEEN IN COURT FOR THE 1931 CRIMES DORA ZIMMERMANN THE 73YEAROLD DAUGHTER OF ONE OF THE MURDERED POLICEMEN ATTENDED THE SENTENCING AS SHE HAS THE ENTIRE TRIAL MRS ZIMMERMANN WHO WAS PROFILED IN A WALL STREET JOURNAL PAGE ONE STORY HAS PARTICIPATED IN THE TRIAL AS A COPLAINTIFF AS ALLOWED BY GERMAN LAW SHE WEPT AT THE VERDICT I AM HAPPY THAT THIS TRIAL OCCURRED AND SATISFIED WITH ITS OUTCOME THE RETIRED EASTERN BERLIN BOOKKEEPER SAID I'LL TELL MY FATHER ABOUT THIS THE NEXT TIME I VISIT HIS GRAVE 9310270030 931027 TREASURY PLANS TO SELL 268 BILLION OF BILLS WASHINGTON THE TREASURY PLANS TO RAISE 375 BILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 268 BILLION IN SHORTTERM BILLS TO REDEEM 2304 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING FEB 3 AND MAY 5 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794H72 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794K45 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9310270029 931027 LAW LEGAL BEAT JUDGE RULES THAT BLIND JURORS DON'T HARM DEFENDANTS' RIGHTS BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL A BLIND PERSON CAN SERVE ON A JURY WITHOUT JEOPARDIZING A CRIMINAL DEFENDANT'S RIGHT TO A FAIR TRIAL A NEW YORK STATE JUDGE RULED THE CASE ADDRESSES AN ISSUE FACING MANY COURTS WHICH UNDER THE AMERICANS WITH DISABILITIES ACT ARE BARRED FROM DISCRIMINATING AGAINST DISABLED PEOPLE ALTHOUGH ABOUT 10 STATES HAVE PASSED LAWS SPECIFICALLY ALLOWING BLIND PEOPLE TO SERVE ON JURIES MANY OTHER STATES HAVEN'T YET DEALT WITH THE ISSUE ORGANIZATIONS FOR THE BLIND SAY THEY HEAR COMPLAINTS FROM PEOPLE EXCLUDED FROM JURIES AROUND THE COUNTRY IN THE NEW YORK CASE THE VISUALLY IMPAIRED WOMAN ALREADY HAD BEEN PICKED FOR THE JURY BEFORE SHE INFORMED THE COURT THAT SHE HAD A DETACHED RETINA IN ONE EYE AND HAD ONLY LIMITED VISION IN THE OTHER NEITHER THE DEFENDANT NOR THE PLAINTIFF OBJECTED BUT JUDGE ROSALYN H RICHTER ISSUED AN OPINION TO EXPLAIN WHY SHE ALLOWED THE JUROR TO SERVE AND HOW THE COURT ACCOMMODATED HER IMPAIRMENT JUDGE RICHTER OF CRIMINAL COURT IN NEW YORK CITY SAID IN HER RULING THAT THE COURT WAS OBLIGATED TO REASONABLY ACCOMMODATE THE JUROR WHO HAD DIFFICULTY SEEING DETAILS OF WITNESSES' FACES AND DETAILS OF PHOTOGRAPHS INTRODUCED AS EVIDENCE THE JUROR IDENTIFIED ONLY AS MS B ALSO COULDN'T READ STANDARDSIZED PRINT NO QUESTION EXISTS ABOUT MS B'S MENTAL ABILITY TO UNDERSTAND THE EVIDENCE OR ABOUT HER VERBAL COMMUNICATION SKILLS THE JUDGE SAID IN HER DECISION WHICH WAS FIRST REPORTED IN THE NEW YORK LAW JOURNAL YESTERDAY THE SOLE QUESTION IS WHETHER HER INABILITY TO OBSERVE THE WITNESSES' FACIAL EXPRESSIONS PREVENTED HER FROM FAIRLY EVALUATING THE TESTIMONY THE JUDGE SAID SIGHT ISN'T THE ONLY SENSE USED TO EVALUATE TESTIMONY IN HER EVERYDAY LIFE MS B HAS TO MAKE JUDGMENTS AND CREDIBILITY DETERMINATIONS WITHOUT RELYING ON VISUAL CLUES AND THERE IS SIMPLY NO REASON TO BELIEVE THAT SHE WAS INCAPABLE OF USING THOSE SAME SKILLS TO REACH A DECISION IN THIS CASE JUDGE RICHTER SAID IN HER DECISION TO MEET THE NEEDS OF THE JUROR THE JUDGE MOVED HER TO A SEAT IN THE JURY BOX CLOSER TO THE WITNESSES AND FURNISHED LARGEPRINT TRANSCRIPTS ALL DOCUMENTS INTRODUCED AS EVIDENCE WERE READ ALOUD AND PHOTOGRAPHS USED AS EVIDENCE WERE DESCRIBED BY THE COURT TO THE JUROR THE DEFENDANT IN THE CASE WHO WAS ACCUSED OF HARASSING A MANHATTAN VETERINARIAN WAS CONVICTED IN JUNE THOMAS MUNSTERMAN WHO DIRECTS JURY RESEARCH FOR THE NATIONAL CENTER FOR STATE COURTS SAID LAWS PROTECTING THE DISABLED REQUIRE JUDGES TO WEIGH HOW A DISABILITY WILL AFFECT THE INDIVIDUAL JUROR RATHER THAN BARRING THE PERSON FROM SERVING IT IS A MATTER OF LOOKING AT THE CASE AND THE KIND OF EVIDENCE TO SEE IF THAT WOULD BE A PROBLEM FOR THE JUROR SAID MR MUNSTERMAN HE SAID ATTORNEYS COULD OBJECT TO A BLIND JUROR FOR INSTANCE IF THE EVIDENCE INCLUDED A VIDEOTAPE CONSIDERED IMPORTANT TO THE CASE LEIGH BARTLETT A LITIGATOR WITH DALLAS LAW FIRM VIAL HAMILTON KOCH & KNOX SAID A JUROR'S BLINDNESS ALSO WOULD RAISE CONCERNS ABOUT HOW WELL THE JUROR COULD JUDGE A WITNESS'S CREDIBILITY IT IS A POTENTIAL PROBLEM IF THE PERSON ISN'T ABLE TO NOTICE THE DEMEANOR OF THE WITNESS SAID MS BARTLETT ADVOCATES FOR THE BLIND HOWEVER SAID SUCH CONCERNS ARE EXAGGERATED YOU HAVE BLIND JUDGES YOU HAVE BLIND ATTORNEYS WHY NOT BLIND JURORS SAID JAMES GASHEL DIRECTOR OF GOVERNMENT AFFAIRS FOR THE NATIONAL FEDERATION OF THE BLIND MR GASHEL SAID THE COMPLAINTS HIS GROUP HAS RECEIVED REGARDING JURY DUTY STEM FROM ATTEMPTS BY THE COURTS RATHER THAN BY ATTORNEYS TO PREVENT BLIND PEOPLE FROM SERVING ON JURIES IN MARCH A FEDERAL JUDGE DECLARED THAT WASHINGTON'S LOCAL COURTS WERE ILLEGALLY EXCLUDING BLIND PEOPLE FROM JURIES PAUL EDWARD KAY A BLIND ATTORNEY WHO PRACTICES IN WASHINGTON BUT WAS TURNED AWAY FOR JURY DUTY TWICE SAID A BLIND PERSON CAN EVALUATE WITNESSES AND PHYSICAL EVIDENCE YOU DON'T NEED TO SEE THE WITNESS YOU CAN JUDGE THE WITNESS'S DEMEANOR FROM THE TENSION IN THE VOICE MR KAY SAID YOU CAN TOUCH THE EVIDENCE I CAN GET A LOT MORE FROM TOUCHING A GUN THAN YOU CAN GET FROM SEEING IT FROM ACROSS THE ROOM PARENTS OF A CHILD WHO IS SERIOUSLY INJURED CAN WIN DAMAGES FOR THE LOSS OF THAT CHILD'S COMPANIONSHIP THE OHIO SUPREME COURT RULED OHIO JOINS MORE THAN A DOZEN OTHER STATES THAT NOW ALLOW PARENTS TO MAKE SUCH LOSS OF CONSORTIUM CLAIMS TRADITIONALLY ONLY PEOPLE WHOSE SPOUSES WERE INJURED COULD MAKE SUCH CLAIMS THE COURT SAID IT WAS REVERSING A DECISION IT HAD MADE ONLY LAST YEAR IN WHICH IT HAD THROWN OUT A CHILD'S CLAIM FOR THE LOSS OF A PARENT'S COMPANIONSHIP TWO JUDGES HAVE LEFT THE COURT SINCE THE EARLIER DECISION IN THE LATEST CASE A MOTHER HAD WON A JURY AWARD FROM A HOSPITAL AFTER IT ALLEGEDLY MADE HER INFANT SON DEAF BY IMPROPERLY ADMINISTERING A DRUG THE SUPREME COURT UPHELD THE AWARD SAYING THAT DESPITE ITS RULING LAST YEAR OHIO LAW MUST BE CONSTRUED AS ALLOWING SUCH CLAIMS THE COURT POINTED TO AN OLD STATE LAW THAT ALLOWS PARENTS TO RECOVER FOR LOSING THEIR CHILD'S SERVICES A DOCTRINE THAT DATES TO AN AGE WHEN CHILDREN WERE IMPORTANT WAGEEARNERS AND LEGALLY EQUIVALENT TO SERVANTS THE HIGH COURT SAID OHIO JUDGES HAVE LONG IMPLICITLY VIEWED COMPANIONSHIP AS COVERED BY THE CONCEPT OF SERVICES WE NOW FORMALLY RECOGNIZE THE APPARENTLY LONGEXISTING RIGHT OF A PARENT TO RECOVER DAMAGES THE COURT SAID IN ITS OPINION LAST MONTH INDEED IN THESE MODERN TIMES THE SOCIETY COMPANIONSHIP COMFORT LOVE AND SOLACE BETWEEN PARENTS AND THEIR CHILD ARE THE ESSENCE OF THAT RELATIONSHIP MORE SO THAN THE SERVICES' A MINOR CHILD IS CAPABLE OF RENDERING THE COURT SAID THE COURT ADDED THAT CHILDREN SHOULD BE ALLOWED TO SUE FOR THE LOSS OF A PARENT'S COMPANIONSHIP AS WELL THE HOLDING DOESN'T APPLY TO OTHER KINDS OF FAMILY RELATIONSHIPS ONE DISSENTING JUDGE NOTED THAT MOST STATE COURTS INCLUDING THOSE IN CALIFORNIA ILLINOIS MISSOURI AND MICHIGAN HAVE REFUSED TO APPLY LOSS OF CONSORTIUM TO PARENTS AND CHILDREN BUT THE TREND I THINK IS TO RULE IN THIS WAY SAID WILLIAM H BLESSING A CINCINNATI ATTORNEY FOR THE OHIO MOTHER SINGER BILLY JOEL SETTLED HIS 90 MILLION FRAUD CASE AGAINST HIS FORMER LAWYER ALLEN GRUBMAN AND TWO OTHER PARTNERS OF GRUBMAN INDURSKY SCHINDLER & GOLDSTEIN IN NEW YORK MR JOEL'S LAWYER IN THE FRAUD CASE LEONARD MARKS DECLINED TO COMMENT ON THE SETTLEMENT WHICH WAS SIGNED OVER THE WEEKEND THE SUIT WAS FILED IN SEPTEMBER 1992 IN STATE COURT IN MANHATTAN MR JOEL ACCUSED HIS LAWYERS OF MALPRACTICE AND BREACH OF CONTRACT CLAIMING AMONG OTHER THINGS THAT THEY KNEW HIS MANAGER WAS CHEATING HIM AND HAD AN OBLIGATION TO INFORM HIM OF THE SITUATION MR GRUBMAN DECLINED TO COMMENT MR JOEL CONTINUES TO PURSUE LAWSUITS AGAINST HIS FORMER MANAGER FRANK WEBER AND HIS FORMER ACCOUNTANTS SEC PICK LOS ANGELES SECURITIES LAWYER SIMON LORNE WAS NAMED GENERAL COUNSEL OF THE SECURITIES AND EXCHANGE COMMISSION BY CHAIRMAN ARTHUR LEVITT MR LORNE 47 YEARS OLD A PARTNER IN THE LOS ANGELES LAW FIRM OF MUNGER TOLLES & OLSON SUCCEEDS JAMES DOTY WHO LEFT IN JANUARY TO RETURN TO THE WASHINGTON OFFICE OF HOUSTONBASED BAKER & BOTTS MR LORNE IS ACTIVE IN THE AMERICAN BAR ASSOCIATION'S BUSINESS LAW SECTION AND HAS TAUGHT SECURITIES LAW AT THE UNIVERSITY OF PENNSYLVANIA AND UNIVERSITY OF SOUTHERN CALIFORNIA HE STARTS WORK MONDAY JUNDA WOO CONTRIBUTED TO THIS ARTICLE 9310270028 931027 ABREAST OF THE MARKET STOCKS END SESSION MOSTLY LOWER ON DROP IN CONSUMER CONFIDENCE BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK INVESTORS BID STOCK PRICES MODESTLY LOWER IN THE WAKE OF A SURPRISING DECLINE IN CONSUMER CONFIDENCE THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 112 POINTS TO 367249 RETREATING FROM A RECORD SET MONDAY BUT RECOVERING FROM A LOSS OF ALMOST 20 POINTS EARLIER IN THE SESSION STANDARD & POOR'S 500STOCK INDEX EDGED UP 010 TO 46430 AND THE DOW JONES TRANSPORTATION AVERAGE SOARED 1944 TO A RECORD 169715 MEANWHILE THE NASDAQ COMPOSITE INDEX CONTINUED TO TAKE A DRUBBING SLIDING 429 TO 76546 AS INVESTORS HAMMERED AWAY AT TECHNOLOGY SHARES VOLUME ON THE BIG BOARD ROSE TO 284500000 SHARES FROM 257170000 SHARES MONDAY FOR THE SEVENTH CONSECUTIVE TRADING DAY DECLINING ISSUES OUTPACED ADVANCERS 1131 TO 890 THE INDUSTRIAL AVERAGE STARTED THE DAY LOWER WITH THE DECLINE ACCELERATING AFTER THE CONFERENCE BOARD REPORTED THAT CONSUMER CONFIDENCE FELL TO 594 THIS MONTH FROM A REVISED 638 IN SEPTEMBER ON THE SURFACE THE REPORT SEEMED TO CONTRADICT RECENT SIGNS THAT THE ECONOMY IS GAINING STRENGTH BUT WILLIAM DODGE CHAIRMAN OF THE INVESTMENT POLICY COMMITTEE AT DEAN WITTER REYNOLDS SUGGESTED INVESTORS DISREGARD THE GLOOMY FINDINGS OF THE SURVEY WATCH WHAT THE CONSUMER DOES AT THE CASH REGISTER RATHER THAN WHAT THEY SAY THEY'RE GOING TO DO HE SAID MR DODGE SAID THAT BUOYANT REPORTS RECENTLY ON AUTO AND HOUSING SALES INDICATE THAT WHILE CONSUMERS MAY BE SOMEWHAT DOWNBEAT THEY ARE STILL SPENDING MONEY YESTERDAY THE JOHNSON REDBOOK REPORT A PRIVATE SURVEY OF RETAILERS SHOWED THAT SALES AT THE NATION'S RETAILERS IN THE FIRST THREE WEEKS OF OCTOBER WERE UP A SEASONALLY ADJUSTED 08 FROM SEPTEMBER IN THE LATEST THREEWEEK PERIOD SALES WERE UP 82 FROM THE YEAREARLIER PERIOD MR DODGE SAID THAT WHAT IS MOST ENCOURAGING IS THAT WHILE UNIT VOLUME GAINS ARE MODEST IN A NUMBER OF INDUSTRIES THEY ARE TRANSLATING INTO BETTERTHANEXPECTED PROFITS FOR A HOST OF COMPANIES BUT MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER IS SKEPTICAL THAT A BACKDROP OF SOLID PROFIT GAINS IS ENOUGH TO PUSH STOCKS SUBSTANTIALLY HIGHER I THINK THE MARKET IS VERY VERY TIRED SAID MR METZ HE NOTED THERE ISN'T THE SAME URGENCY AMONG PORTFOLIO MANAGERS TO PUT MONEY TO WORK AS THERE WAS EARLIER THIS YEAR AS A RESULT MANY ARE FINDING THAT THEY HAVE TO SELL ONE STOCK IN THEIR PORTFOLIO TO OWN ANOTHER ONE BUYING OF A FEW SELECT NAMES IS OFTEN ENOUGH TO DRIVE BROAD INDEXES LIKE THE INDUSTRIAL AVERAGE HIGHER BUT IT ALSO MAY ACCOUNT FOR THE NUMBER OF DECLINING STOCK ISSUES OUTPACING ADVANCING ISSUES AS HAS BEEN THE CASE RECENTLY AIRLINES LED THE SURGE IN TRANSPORTATION STOCKS AMR PARENT OF AMERICAN AIRLINES ADDED 1 7/8 TO 70 DELTA AIR LINES ROSE 1 1/2 TO 57 5/8 SOUTHWEST AIRLINES INCREASED 1 1/8 TO 31 1/4 AND UAL PARENT OF UNITED AIRLINES ADVANCED 3 3/8 TO 146 5/8 USXUS STEEL CLIMBED 2 1/2 TO 38 1/8 AFTER REPORTING IMPROVED PROFIT OTHER STEEL STOCKS FOLLOWED BETHLEHEM STEEL ROSE 1 TO 17 3/8 INLAND STEEL JUMPED 1 1/2 TO 32 7/8 USXUS STEEL JUMPED AFTER THE PITTSBURGH COMPANY SAID IT HAD A THIRDQUARTER PROFIT OF 44 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 48 CENTS A SHARE SALES CLIMBED TO 14 BILLION FROM 13 BILLION RJR NABISCO WAS THE MOST ACTIVE STOCK ON THE BIG BOARD ENDING UNCHANGED AT 5 3/8 THE FOOD AND TOBACCO COMPANY'S THIRDQUARTER PROFIT PLUNGED 58 THE RESULT OF A CIGARETTE PRICE WAR BMC SOFTWARE TUMBLED 5 3/4 TO 51 1/4 ON NASDAQ EVEN THOUGH THE COMPANY REPORTED BETTERTHANEXPECTED SECONDQUARTER EARNINGS OF 77 CENTS A SHARE UP FROM 58 CENTS A SHARE A YEAR EARLIER ANALYSTS THOUGH WERE DISAPPOINTED WITH THE SUGAR LAND TEXAS COMPANY'S OVERSEAS REVENUE TIMOTHY MCCOLLUM AN ANALYST AT DEAN WITTER REYNOLDS EXPECTS BMC'S RESULTS TO IMPROVE IN THE THIRD QUARTER AIDED BY STRONGER BUSINESS CONDITIONS AND A REVAMP IN ITS MANAGEMENT STRUCTURE INTERNATIONAL BUSINESS MACHINES ADDED 1 3/8 TO 46 1/4 THE ARMONK NY COMPUTER COMPANY REPORTED A NARROWERTHANEXPECTED THIRDQUARTER LOSS OF 12 CENTS A SHARE ANALYSTS WERE EXPECTING A DEFICIT OF ABOUT 27 CENTS A SHARE ITS REVENUE GREW SLIGHTLY TO 147 BILLION IN THE QUARTER ANALYSTS HAD PREDICTED A DROP PHILLIPS PETROLEUM SKIDDED 1 5/8 TO 31 AFTER IT SAID THIRDQUARTER EARNINGS FELL TO 16 CENTS A SHARE FROM 40 CENTS A SHARE A YEAR EARLIER EXCLUDING EXTRAORDINARY ITEMS IN BOTH PERIODS ANALYSTS PUT THE BARTLESVILLE OKLA COMPANY'S PROFIT AT 21 CENTS A SHARE DOWN FROM 27 CENTS A SHARE A YEAR EARLIER AND WELL BELOW AN EXPECTED 32 CENTS A SHARE CHRISCRAFT INDUSTRIES JUMPED 1 3/4 TO 42 1/2 AFTER THE NEW YORK COMPANY SAID IT AND PARAMOUNT COMMUNICATIONS WILL LAUNCH A TELEVISION NETWORK IN 1995 THE BROADCAST NETWORK THE NATION'S FIFTH WILL START WITH FOUR HOURS A WEEK OF ORIGINAL PROGRAMMING SHARES OF PARAMOUNT BASED IN NEW YORK WERE UNCHANGED AT 79 NATIONAL HEALTH LABORATORIES SLUMPED 2 3/8 TO 13 1/8 THE COMPANY WILL REMOVE TWO TESTS FROM ITS BASIC MEDICAL TEST PACKAGE AFTER THE FEDERAL MEDICAID PROGRAM REFUSED TO PAY FOR THEM AS PART OF A COSTCUTTING MOVE THE LA JOLLA CALIF COMPANY SAID ITS NET INCOME AND REVENUE WILL BE DEPRESSED BY THE ACTION AMERICAN EXPRESS SLUMPED 1 3/8 TO 32 5/8 EVEN THOUGH IT REPORTED BETTERTHANEXPECTED THIRDQUARTER EARNINGS THE NEW YORK FINANCIAL SERVICES CONCERN HAD A THIRDQUARTER PROFIT OF 83 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 45 CENTS A SHARE BOTH PERIODS INCLUDED EXTRAORDINARY ITEMS ALZA CORP JUMPED 2 1/4 TO 26 AFTER MERRILL LYNCH & CO RAISED ITS INTERMEDIATE TERM RATING ON THE STOCK TO BUY FROM ABOVE AVERAGE SEPARATELY THE PALO ALTO CALIF PHARMACEUTICAL COMPANY'S STOCK WAS LISTED IN YESTERDAY'S HEARD ON THE STREET COLUMN AS A POSSIBLE TARGET FOR BARGAIN HUNTERS MOBILE TELECOMMUNICATIONS TUMBLED 3 1/2 TO 29 1/2 IN NASDAQ TRADING DESPITE AN IMPROVED EARNT THE JACKSON MISS COMPANY HAD EARNINGS FROM OPERATIONS OF SEVEN CENTS A SHARE IN THE THIRD QUARTER COMPARED WITH A LOSS OF ONE CENT A SHARE A YEAR EARLIER 9310270026 931027 WHO'S NEWS CIS TECHNOLOGIES INC CIS TECHNOLOGIES INC TULSA OKLA JAMES L HERSMA 45 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS PROVIDER OF CLAIMSPROCESSING AND DATAMANAGEMENT SYSTEMS FOR HOSPITALS THE POSTS HAD BEEN VACANT SINCE LAST YEAR MR HERSMA WAS FORMERLY VICE PRESIDENT AND GENERAL MANAGER OF BAXTER HEALTHCARE CORP A UNIT OF BAXTER INTERNATIONAL INC 9310270025 931027 AMOCO CORP UNIT'S DEBENTURES CHICAGO AMOCO CO A UNIT OF AMOCO CORP SAID IT IS OFFERING TO PURCHASE ALL OF ITS 8625 DEBENTURES OUTSTANDING DUE DEC 15 2016 975 DEBENTURES DUE MARCH 20 2016 AND 9875 DEBENTURES DUE FEB 1 2016 THE OFFER EXPIRES NOV 23 UNLESS EXTENDED THE COMPANY SAID 9310270024 931027 WORLD MARKETS TOKYO SHARES SINK 14 AS INVESTORS SWITCH FUNDS FOR RAIL IPO DASHING HOPES FOR A RALLY A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS TUMBLED 14 TUESDAY AS A NEW LISTING OF EAST JAPAN RAILWAY PROMPTED INVESTORS TO SELL OTHER STOCKS TO JUMP INTO THE OFFERING DASHING HOPES THAT IT WOULD LURE BROADER INTEREST IN THE MARKET LONDON PRICES DROPPED AS SENTIMENT WAS SOURED FURTHER BY A PESSIMISTIC READING ON THE BRITISH ECONOMY FRANKFURT SHARES SAGGED IN THIN VOLUME AS THE GERMAN CURRENCY AND BOND PRICES WEAKENED AND INTERRUPTED THE RALLY IN EQUITIES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11321 DOWN 039 REFLECTING DECREASES IN ALL REGIONS FOREST PRODUCTS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14996 UP 377 OR 26 WITH ABITIBI PRICE OF CANADA POSTING A 78 GAIN IN ITS LOCAL CURRENCY ADVANCED TECHNOLOGY/MEDICAL DEVICES STOCKS TRAILED AT 6199 DOWN 112 OR 18 WITH MEDTRONIC OF THE US SLIDING 3 IN LCURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 4450 POINTS MONDAY SANK 28573 TO 2002360 IN TRADING WEDNESDAY IN TOKYO THE NIKKEI FELL 27272 POINTS TO CLOSE THE MORNING SESSION AT 1975088 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 250 MILLION SHARES DOWN FROM 3127 MILLION SHARES A DAY EARLIER LOSERS FAR OUTNUMBERED GAINERS 967109 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 635 POINTS MONDAY SLUMPED 2413 OR 15 TO 164531 WEEKS OF ANTICIPATION ABOUT EAST JAPAN RAILWAY OR JR EAST ENDED IN DISAPPOINTMENT AS THE MUCHHAILED LISTING DIDN'T FIRE A MARKET RALLY JR EAST CLOSED AT 600000 YEN 552480 UP A STUNNING 220000 YEN OR 58 FROM THE INITIAL PUBLIC OFFERING PRICE INCREASING THE COMPANY'S MARKET CAPITALIZATION 57 TO 11 BILLION AS THE STOCK JAPAN'S FIRST LISTING OF A FORMER GOVERNMENT COMPANY SINCE 1986 WAS OVERSUBSCRIBED 75 TIMES THIS RAISED CONCERNS THAT THE IPO WAS MISPRICED SELLING OF STOCK FUTURES AND A RUSH BY INVESTORS OUT OF SMALLCAPITALIZATION SHARES LATE IN THE SESSION PUSHED THE STOCK INDEXES DOWN SMALLCAP STOCKS PLUNGED ALMOST 2 ON PROFITTAKING MANY INVESTORS DIDN'T WANT TO PUT FRESH MONEY INTO JR HOLDINGS SO THEY SOLD OTHER POSITIONS TO RAISE THE MONEY FOR THE RAIL STOCK PURCHASES BROAD BUYING IN THE PAST FEW WEEKS BY LIFE INSURERS PUBLIC PENSION FUNDS AND OTHER INSTITUTIONAL INVESTORS LEFT THE IMPRESSION OF SUPPORT PENDING THE JR LISTING AND INHIBITED SELLING BUT INVESTORS SHRUGGED OFF THAT RELUCTANCE WITH THE RAIL IPO COMPLETED IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX GAVE UP 195 POINTS TO 31653 THE FT 30STOCK INDEX DROPPED 144 POINTS TO 23815 VOLUME WAS 5895 MILLION SHARES UP FROM 4826 MILLION SHARES A DAY EARLIER THE DROP IN THE 100STOCK BAROMETER PULLED THE MARKET DOWN ALMOST TO ITS LEVEL BEFORE GERMANY CUT INTEREST RATES LAST THURSDAY AND SPARKED EUROPEAN RALLIES PRICES YESTERDAY OPENED WEAKLY BRIEFLY MOVED HIGHER BUT WERE PUSHED DOWN BY A SURVEY BY A BRITISH INDUSTRIAL TRADE GROUP WHICH WARNED THAT CONFIDENCE IN THE STRENGTH OF THE ECONOMIC RECOVERY WAS WANING AND THAT IT EXPECTED ONLY A MODEST IMPROVEMENT IN DEMAND AND PRODUCTION OVER THE NEXT FOUR MONTHS THE SURVEY OF 1316 MANUFACTURERS IN 50 SECTORS FOUND THAT EXPORT PROSPECTS WEAKENED FOR THE FIRST TIME SINCE JANUARY 1992 BECAUSE THE BRITISH GOVERNMENT HAS VOWED TO HOLD MONETARY POLICY STEADY TO TAME THE BUDGET DEFICIT MARKET PARTICIPANTS WORRIED THAT A LENDINGRATE REDUCTION MIGHT NOT EMERGE TO HELP STOKE THE ECONOMY YET DESPITE THE MAIN INDEXES' DECLINES MOST STOCK PRICES EASED FRACTIONALLY IN FRANKFURT THE DAX 30STOCK INDEX FELL 1567 POINTS TO 205872 BARELY ABOVE THE INTRADAY LOW OF 205815 OF THE DAX STOCKS 5 ROSE AND 25 DECLINED THE MARKET DIDN'T RESPOND NOTICEABLY TO PRELIMINARY INFLATION DATA FOR WESTERN GERMANY RELEASED SHORTLY BEFORE THE SESSION ENDED SHOWING A 39 ANNUAL RATE IN OCTOBER BELOW 4 FOR THE FIRST TIME THIS YEAR BUT SLIGHTLY HIGHER THAN EXPECTED SENTIMENT WAS STILL BULLISH THOUGH INVESTORS WERE AWAITING SIGNALS ON THE MARKET'S SHORTTERM DIRECTION IN PARIS STOCKS SLIPPED IN DEALINGS DAMPED BY LABOR STRIKES AND CHRONIC TECHNICAL PROBLEMS WHICH ONCE AGAIN INTERRUPTED TRADING THIS TIME FOR MORE THAN AN HOUR IN A LONG SERIES OF SNAGS IN RECENT MONTHS THAT HAS FRUSTRATED INVESTORS AND HURT THE SOPHISTICATED ELECTRONIC MARKET'S REPUTATION ABROAD IN AMSTERDAM PAUSING AGAIN AFTER RECENT BROAD GAINS SHARES ENDED MIXED DESPITE A STRONG DOLLAR IN MILAN SHARES ENDED LOWER FOLLOWING COMMENTS BY SEVERAL PROMINENT CORPORATE EXECUTIVES INDICATING LITTLE INTEREST IN ITALIAN COMPANIES THAT ARE TO BE PRIVATIZED IN MADRID STOCKS FELL ON CONTINUED PROFITTAKING FOLLOWING LAST WEEK'S RALLY BUT IN ZURICH EQUITIES REBOUNDED AS A FIRM DOLLAR AND LOWER INTEREST RATES HELPED REVIVE THE MARKET'S UPBEAT MOOD INSURANCE AND CHEMICAL ISSUES LED THE ADVANCE AND DOLLARSENSITIVE SHARES ALSO ATTRACTED STRONG INTEREST AND IN STOCKHOLM PRICES ADVANCED ON LOWER SWEDISH INTEREST RATES AND A STABLE CURRENCY THOUGH THEY RETREATED FROM THE DAY'S HIGHS ON A DISAPPOINTING CORPORATE EARNINGS REPORT IN SYDNEY SHARE PRICES ROSE AFTER RALLYING FROM LOWS WHEN BUYERS RETURNED TO THE MARKET FOLLOWING SOME PROFITTAKING IN HONG KONG STOCKS GAINED AFTER SEESAW TRADING IN A RELATIVELY NARROW RANGE SMALLER ISSUES WERE IN THE LIMELIGHT AS THE APPEAL OF BIG STOCKS WAS THIN IN A CONSOLIDATION AFTER THE RECENT BULL RUN IN TAIPEI EQUITIES EDGED DOWN ON PROFITTAKING FOLLOWING GAINS IN THE PREVIOUS THREE SESSIONS IN MANILA SHARES GAINED IN A TECHNICAL RALLY AFTER THE PREVIOUS DAY'S TUMBLE IN SEOUL PRICES FINISHED HIGHER AFTER FOREIGN BUYING LIFTED THEM FROM THE SESSION'S LOWS IN WELLINGTON STOCKS CLIMBED TO A FOURYEAR HIGH LIFTED BY THE FORESTRY SECTOR AMONG CORPORATE EARNINGS IN TOKYO ELECTRONICS COMPANIES ANNOUNCED DISMAL EARNINGS AS EXPECTED HURT BY FACTORS SUCH AS JAPAN'S PROTRACTED ECONOMIC SLOWDOWN THE YEN'S RAPID APPRECIATION AND UNSEASONABLE SUMMER WEATHER SHARP FINISHED UNCHANGED AT 1530 YEN 1409 THE MAKER OF CONSUMER ELECTRONIC GOODS POSTED UNCONSOLIDATED PRETAX PROFIT FOR THE SIX MONTHS ENDED SEPT 30 THAT FELL 23 TO 2018 BILLION YEN 1858 MILLION FROM A YEAR EARLIER FANUC SLUMPED 50 OR 13 TO 3710 THE FACTORY AUTOMATION EQUIPMENT AND ROBOT MAKER'S UNCONSOLIDATED PRETAX PROFIT FOR THE FIRST HALF ENDED SEPT 30 PLUNGED 28 TO 1164 BILLION YEN MATSUSHITA ELECTRIC INDUSTRIAL SANK 20 OR 13 TO 1500 THE GIANT MAKER OF CONSUMER ELECTRONICS EQUIPMENT REPORTED THAT UNCONSOLIDATED PRETAX PROFIT FOR THE FIRST HALF ENDED SEPT 30 PLUMMETED 43 TO 2969 BILLION YEN 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 9310270023 931027 WHAT'S NEWS BUSINESS AND FINANCE IBM POSTED A SOMEWHAT SMALLER LOSS THAN EXPECTED FOR THE THIRD QUARTER BUT OPERATING RESULTS WERE IN THE RED FOR THE FOURTH CONSECUTIVE QUARTER SHOWING THE DEPTH OF THE COMPUTER COMPANY'S PROBLEMS AMID PRESSURE ON PROFIT MARGINS AND ECONOMIC SLUGGISHNESS IN THE US AND EUROPE PARAMOUNT AND CHRISCRAFT INDUSTRIES SAID THEY WOULD USE THEIR COMBINED TV STATIONS AND PARAMOUNT'S PROGRAMMING MUSCLE TO LAUNCH A FIFTH BROADCAST NETWORK IN JANUARY 1995 THE ANNOUNCEMENT ADDS A NEW DIMENSION TO THE BATTLE BETWEEN VIACOM AND QVC TO ACQUIRE PARAMOUNT BELLSOUTH IS MULLING A SOLO BID FOR PARAMOUNT AND REMAINS A WILD CARD IN THE TUMULTUOUS TAKEOVER BATTLE BUT SOME ANALYSTS ARE SKEPTICAL THE BABY BELL WOULD MAKE SUCH A BOLD MOVE STILL A PERSON FAMILIAR WITH BELLSOUTH SAID IT WAS EXPLORING FINANCING FOR SUCH A BID AS RECENTLY AS YESTERDAY CONSUMER CONFIDENCE FELL THIS MONTH NEARLY WIPING AWAY SEPTEMBER'S GAIN AMID INCREASING PESSIMISM ABOUT ECONOMIC AND EMPLOYMENT PROSPECTS A NEW SURVEY SHOWS THE US POSTPONED PLANS TO IMPOSE TRADE SANCTIONS ON JAPANESE CONSTRUCTION FIRMS AFTER TOKYO UNVEILED A PLAN TO OPEN FURTHER ITS 300 BILLION PUBLICWORKS MARKET TO FOREIGN BIDDERS GENERAL MOTORS PLANS TO OFFER NEW CARS AND UP TO 100000 AS PART OF A BLUECOLLAR EARLYRETIREMENT PROGRAM AND MAY TRY TO BOOST WHITECOLLAR MORALE BY RESTORING HEALTH BENEFITS BELL ATLANTIC AND TELECOMMUNICATIONS PLAN TO SPEND 15 BILLION IN THE NEXT FIVE YEARS BUILDING THE INFORMATION SUPERHIGHWAY THEY HOPE MILLIONS OF CONSUMERS WILL USE BELL'S CHAIRMAN PLANS TO TELL AN ANTITRUST PANEL TODAY PROCTER & GAMBLE POSTED BETTERTHANEXPECTED FISCAL FIRSTQUARTER EARNINGS OF 670 MILLION DESPITE UNFAVORABLE FOREIGN EXCHANGE RATES EAST JAPAN RAILWAY'S STOCK PRICE JUMPED 58 IN TOKYO ON ITS FIRST TRADING DAY BUT FAILED TO SPARK THE REST OF THE MARKET THE NIKKEI 225STOCK INDEX SANK 28573 OR 14 TO 2002360 VISA'S CEO IS EXPECTED TO ANNOUNCE HIS RETIREMENT FROM THE CREDITCARD FIRM PEOPLE CLOSE TO HIM SAID THE UNITED SHAREHOLDERS ASSOCIATION WILL DISBAND AT YEAR END THE GROUP WHICH USED PUBLICITY TO FORCE CHANGE AT FIRMS IT DEEMED UNFRIENDLY TO HOLDERS SAID ITS JOB WAS COMPLETE RJR NABISCO'S PROFIT PLUNGED 58 IN THE THIRD QUARTER THE RESULT OF THE INDUSTRY'S CIGARETTE PRICE WAR PRUDENTIAL SECURITIES HAS SET ASIDE MORE THAN 200 MILLION SO FAR TO PAY THE LEGAL BILLS FOR SOURED LIMITED PARTNERSHIPS AND WILL SET ASIDE UP TO 100 MILLION MORE THROUGH YEAR END USX SWUNG TO A PROFIT IN THE THIRD QUARTER BUT STRONG RESULTS AT ITS STEEL UNIT WERE PARTLY OFFSET BY DISAPPOINTING RESULTS AT ITS MARATHON OIL UNIT STOCKS VOLUME 284503650 SHARES DOW JONES INDUSTRIALS 367249 OFF 112 TRANSPORTATION 169715 UP 1944 UTILITIES 23860 UNCHANGED BONDS LEHMAN BROTHERS TREASURY INDEX 565215 UP 1634 COMMODITIES OIL 1754 A BARREL UP THREE CENTS DOW JONES FUTURES INDEX 12983 OFF 045 SPOT INDEX 11934 UP 012 DOLLAR 10830 YEN OFF 028 16788 MARKS OFF 00072 9310270022 931027 LETTERS TO THE EDITOR PENN STUDENTS OPPOSE GAG ON FREE SPEECH THE UNIVERSITY OF PENNSYLVANIA HAS RECENTLY BEEN IN THE NEWS BECAUSE OF THE INFRINGEMENT OF FREE SPEECH DUE TO OUR SPEECH CODES THE WATER BUFFALO INCIDENT AND STUDENTS STEALING OUR STUDENT NEWSPAPER AND NOT BEING PROSECUTED SHOW HOW THE UNIVERSITY IS TAKING AWAY STUDENTS' CONSTITUTIONAL RIGHTS IN YOUR OCT 11 EDITORIAL FREE SPEECH SEEKS ADMISSION YOU STATED THAT OUR STUDENT GOVERNMENT SUPPORTED THESE SPEECH CODES AS THE MEMBER OF THE PENN UNDERGRADUATE ASSEMBLY WHO INTRODUCED A RESOLUTION TO GET RID OF SPEECH CODES I CAN TELL YOU THAT THE COUNTERRESOLUTION TO KEEP THEM PASSED BY ONLY ONE VOTE THE MAJORITY OF THE STUDENTS AT THE UNIVERSITY ARE STRONGLY AGAINST SPEECH CODES MANY OF US FEEL OUR INTELLECTUAL COMMUNITY HERE IS BEING SLOWLY DESTROYED BY THOUGHT POLICE THE POLITICAL CORRECTNESS MOVEMENT HAS BEEN CARRIED TO AN EXTREME AT PENN WHERE CERTAIN PEOPLE FEEL WE SHOULD SACRIFICE OUR BASIC CONSTITUTIONAL RIGHTS IN ORDER TO PROMOTE A SPIRIT OF COMMUNITY IT IS OBVIOUS IN LIGHT OF RECENT EVENTS THAT THE SPEECH CODES ARE PROMOTING ANYTHING BUT COMMUNITY I ENCOURAGE PENN PRESIDENT CLAIRE FAGIN TO FOLLOW WHAT IS CLEARLY THE WISHES OF A MAJORITY OF THE STUDENTS REMOVE THE SPEECH CODES AND GIVE US THE SAME RIGHTS GRANTED TO OUR FRIENDS AT PENN STATE BECAUSE WE ARE A PRIVATE INSTITUTION WE ARE NOT AFFECTED BY THE SUPREME COURT RULING THAT PROHIBITS SPEECH CODES AT STATE SCHOOLS I HOPE OTHER SCHOOLS WILL TAKE THE EXAMPLE FROM PENN AND PROMOTE THE IDEALS OF OUR FOUNDING FATHERS RATHER THAN PANDER TO SPECIAL INTERESTS ON THEIR CAMPUSES 9310270021 931027 IN VIRGINIA TERRY TUMBLES AND ALLEN CAPITALIZES BY MIKE ALLEN RICHMOND VA MARY SUE TERRY A DEMOCRAT BACKED BY VIRGINIA'S BIGWIGS AND BEAUTIFUL PEOPLE WAS MUGGED DURING WHAT WAS SUPPOSED TO BE HER VICTORY STROLL TO THE GOVERNOR'S MANSION AS HER CAMPAIGN MEDICS SCRAMBLE TO AVOID A SLAUGHTER ON TUESDAY REPUBLICAN GEORGE ALLEN STANDS BY WEARING COWBOY BOOTS AND A SLY GRIN THAT ASKS WHO ME IN FACT MR ALLEN SON OF GEORGE ALLEN THE LATE PRO FOOTBALL COACH CAN TAKE LITTLE CREDIT FOR THE COLLAPSE OF MS TERRY WHO FELL SO FAST SHE'S KNOWN AROUND TOWN AS MARY SOUFFLE THIS WAS AN INSIDE JOB FUTURE CANDIDATES CAN USE THE TERRY CAMPAIGN WHICH BEGAN WITH A TENFOLD ADVANTAGE IN CASH AND A 29POINT LEAD IN THE POLLS AS A TEXTBOOK ON THE PERIL OF OUTSLICKING YOURSELF THROUGH ARROGANCE AND OVERORCHESTRATION MS TERRY A DAUGHTER OF SCHOOLTEACHERS GREW UP ON A PIG FARM AND BECAME A PROSECUTOR AND STATE DELEGATE SHE HAS BEEN RUNNING FOR GOVERNOR SINCE AT LEAST 1985 WHEN SHE WAS ELECTED ATTORNEY GENERAL IN 1989 SHE STEPPED ASIDE FOR LT GOV L DOUGLAS WILDER WHO BECAME THE NATION'S FIRST BLACK ELECTED GOVERNOR SHE WAS REELECTED THAT YEAR WITH ONE MILLION VOTES THE MOST EVER FOR A VIRGINIA CANDIDATE EIGHT MONTHS AFTER THAT ELECTION AND MORE THAN THREE YEARS BEFORE THE NEXT ONE SHE OPENED A GUBERNATORIAL CAMPAIGN OFFICE AND STARTED COLLECTING CHECKS AT HER CHRISTMAS PARTY FOR REPORTERS LAST YEAR SHE DONNED SLACKS AND A TURTLENECK AND WAS SERENADED WITH GOIN' TO THE MANSION TO THE TUNE OF CHAPEL OF LOVE HER AIDES DID ALL THE LITTLE THINGS RIGHT THEY HELD FUNDRAISERS WITH HIP NAMES LIKE TERRY FOR TOMORROW GOT PHONE NUMBERS ENDING IN 1993 AND WORKED 16HOUR DAYS EVEN WHEN THE CAMPAIGN WAS SITTING FAT SO WHAT HAPPENED ON THE WAY TO THE CORONATION HER MESSAGEOFTHEDAY STRATEGY BACKFIRED INTO A MULTIPLECHOICE MESS ONE REPUBLICAN OPERATIVE DUBBED IT THE TINEAR CAMPAIGN IN JUNE MS TERRY STARTED PUSHING A FIVEDAY WAITING PERIOD FOR HANDGUN PURCHASES A MEASURE SHE HAD OPPOSED IN HER LAST TWO CAMPAIGNS NEVERTHELESS TEAM TERRY MADE THE WAITING PERIOD HER SIGNATURE ISSUE HER MANTRA BECAME CRIME EDUCATION HEALTH CARE AND JOBS THEN ON LABOR DAY MS TERRY UNVEILED YET ANOTHER THEME TRUST EVEN OTHER DEMOCRATS RIDICULED IT AS AN ISSUE OF LAST RESORT BUT SHE AND HER SPINNERS USED THE WORD AT EVERY OPPORTUNITY SO I ALMOST GOT WHIPLASH THREE WEEKS AGO WHEN MS TERRY WAS ON THE SIX O'CLOCK NEWS SAYING THE ISSUE IN THIS RACE IS CHANGE WHAT I THOUGHT IT WAS TRUST OR WAS IT GUNS VIRGINIA HAS VOTED REPUBLICAN IN THE PAST SEVEN PRESIDENTIAL ELECTIONS AND GOV WILDER AND SEN CHARLES ROBB HAVE BEEN BACKSTABBING EACH OTHER FOR SO LONG THAT HARPER'S MAGAZINE RAN AN ARTICLE CALLED VIRGINIA IS FOR ENEMIES SO NO MAJOR DEMOCRATIC FIGURE FEDERAL OR STATE COULD BE ANY HELP TO MS TERRY ON THE TRAIL TAPPING VOTER RESENTMENT TOWARD THE DECADE OF DEMOCRATIC DOMINATION OF STATE GOVERNMENT MR ALLEN USES ROBBWILDERTERRY AS AN ALLPURPOSE SLUR OLIVER NORTH A REPUBLICAN SENATE CANDIDATE IN VIRGINIA CALLS HER MARY SUE CLINTON MS TERRY GOES INTO SUCH CONTORTIONS TO AVOID THE WORD DEMOCRAT THAT IN A TV INTERVIEW SHE REFERRED TO THOSE OF MY PARTY AS ONE TERRY HONCHO PUT IT WE'RE IN POLITICAL WIND SHEAR AFRICANAMERICAN LEADERS SAID MS TERRY WAS TAKING THEM FOR GRANTED AND MR ALLEN LINED UP 100 OF THEM FOR AN AFRICANAMERICANS FOR ALLEN NEWS CONFERENCE MS TERRY WHO'S WARM AND WITTY IN PRIVATE IS A BLAND WOODEN SPEAKER WHO HAS A TALENT FOR TAKING UNFLATTERING PHOTOGRAPHS HER WONKISH RHETORIC IS SOMETIMES LAUGHABLE THE CHALLENGE FOR US NOW IS TO AFFIRM OUR MODERATION SHE TOLD ONE RALLY AT A TELEVISED DEBATE SHE SAID WE'VE GOT TO PROVIDE OPPORTUNITY AND OVERARCHING JOBS FOR OUR CITIZENS MEANWHILE MR ALLEN IS RUNNING AS BARNEY A BIGOLE FRIENDLY GUY WHO MAKES YOU FEEL COZY AND SAFE HE BILLS HIMSELF AS A JEFFERSONIAN CONSERVATIVE AND HAS MADE ABOLITION OF THE LIBERAL PAROLE SYSTEM THE CENTERPIECE OF HIS CAMPAIGN HIS AWSHUCKS STYLE WHICH LEADS SOME TO DERIDE HIM AS CURIOUS GEORGE OR HOWDY DOODY IS A POSE HE GREW UP IN AFFLUENT SOUTHERN CALIFORNIA SUBURBS BUT THE FAUX FOLKSINESS IS A PERFECT FOIL AGAINST MS TERRY HE RIBS HER ABOUT FUNDRAISING MARY SUE YOU REALLY DO LIKE TO SHAKE 'EM DOWN CALLS HER MARY SUE ANTOINETTE AND SAYS NO VOTER GIVES A HOOT ABOUT HER TALK OF PRESS CYCLES NEGATIVE SPOTS ACTUALITIES MEDIA MARKETS AND FAILURE MODES THIS WEEK MS TERRY WHO IS A FISCAL CONSERVATIVE AND A SOCIAL MODERATE IS HAMMERING HER CHARGE THAT MR ALLEN IS THE BIG SPENDER IN THE RACE SHE FIGURES HIS PROMISES ADD UP TO 3 BILLION WHILE HE PUTS THE FIGURE AT 638 MILLION WHICH IS STILL INFEASIBLE GIVEN THE STATE'S FINANCIAL OUTLOOK HER OTHER LASTDAYS GAMBIT IS TO PORTRAY MR ALLEN AS A CAPTIVE OF THE RADICAL RIGHT A COMMERCIAL SHOWS A GRAINY PAT ROBERTSON LOOMING OVER MR ALLEN BUT COLORING MR ALLEN FRIGHTENING AT THIS LATE DATE WILL BE DIFFICULT AFTER MONTHS OF HIS LUSH COMMERCIALS SHOWING HIM TALKING IN PASTURES WALKING IN THE WOODS WITH HIS WIFE AND PUSHING HIS CHILDREN ON SWINGS INDEED ATTEMPTS TO SLAY MR ALLEN'S CHARACTER ARE SEEN BY MANY VOTERS AS POLITICSASUSUAL REMINDING THEM OF THE PERENNIAL ROBB/WILDER FEUD THE FOLKS OF VIRGINIA ARE RIGHTFULLY DISGUSTED WITH THE CONSTANT SCANDALS THE EMBARRASSMENT THE PETTY BICKERING THAT HAS GONE ON MR ALLEN SAYS OUR GRASSROOTS INSURGENCY HAS BECOME A REVOLUTIONARY ARMY THAT IS A TAD EXAGGERATED BUT MR ALLEN HAS TAPPED INTO A DISILLUSIONMENT WITH THE STATUS QUO THAT IS LIKELY TO CATAPULT HIM INTO THE STATEHOUSE MR ALLEN IS A SPECIAL ASSIGNMENT REPORTER FOR THE RICHMOND TIMESDISPATCH 9310270020 931027 NEW DIMENSIONS TO BUSINESS CLASS' BY MICHAEL J MCCARTHY WILL AN OFFICE IN THE SKY FLY AS AIRLINES SEEK NEW WAYS TO REACH THEIR CORE BUSINESS PASSENGERS AIRCRAFT MAKER MCDONNELL DOUGLAS CORP THINKS ONE ANSWER IS ONBOARD OFFICES COMPLETE WITH DESKS FAX MACHINES COMPUTERS PRINTERS AND TELEPHONES IN THE PAST YEAR THE COMPANY'S DOUGLAS AIRCRAFT DIVISION IN LONG BEACH CALIF HAS DESIGNED SEVERAL OFFICE CONFIGURATIONS INCLUDING A STANDUP BOOTH FOR SINGLEAISLE PLANES WITH ITS FOLDDOWN TABLE YOU COULD QUICKLY GO UP SEND A FAX MAKE A CALL USE THE COMPUTER THEN HEAD BACK TO YOUR SEAT SAYS BILLIE HENDRIXSON A DOUGLAS INDUSTRIALDESIGN DIRECTOR IT HAS ALL THE CONVENIENCES OF YOUR OFFICE EXCEPT IN THE AIR SO FAR NONE OF THE AIRLINES DEALING WITH MORE PRESSING FINANCIAL ISSUES HAVE ORDERED AN AIRBORNE OFFICE SOME ARE HOWEVER BEGINNING TO INSTALL TELEPHONES THAT TRANSMIT COMPUTER DATA AND THAT ENABLE CALLERS ON THE GROUND TO RING PASSENGERS IN FLIGHT BUT AMERICAN AIRLINES HAS SAID ITS LONGTERM STRATEGY IS TO DEVELOP AN OFFICE IN THE SKY AND DELTA AIRLINES ALLOWED A TEAM OF DOUGLAS DESIGNERS TO CONDUCT A FEASIBILITY STUDY OF THE OFFICE UNITS ON SOME OF ITS BUSINESSSHUTTLE FLIGHTS WE'RE EXAMINING ALL KINDS OF POSSIBILITIES SAYS A DELTA SPOKESMAN BUT BOTTOM LINE THESE SYSTEMS HAVE TOE COSTEFFECTIVE CONVINCED IT IS ONTO SOMETHING DOUGLAS HAS BUILT A FULLSCALE MODEL OF A FULLY ENCLOSED OFFICE FOR ITS DOUBLEDECK MD12 WHICH IS STILL UNDER DEVELOPMENT IT COULD ALLOW THE BUSINESS PASSENGER TO BUCKLE UP AND STAY RIGHT AT THE WORK STATION THROUGH TAKEOFF AND LANDING SAYS MS HENDRIXSON YOU AREN'T GOING TO BE ABLE TO GET AWAY WITH NOT WORKING OR NOBODY BEING ABLE TO REACH YOU ON AN AIRPLANE ANYMORE 9310270019 931027 CREDIT RATINGS MEDCO CONTAINMENT SERVICES INC MONTVALE NJ MOODY'S INVESTORS SERVICE INC UPGRADED THE SUBORDINATED DEBT RATING OF THIS DISCOUNT DISTRIBUTOR OF DRUGS TO AA3 FROM BAA1 AND CONFIRMED THE TRIPLEA SENIOR DEBT RATING OF MERCK & CO THE RATING ACTIONS WERE TAKEN IN ANTICIPATION OF MERCK'S ACQUISITION OF MEDCO MOODY'S SAID IT EXPECTS MERCK A MAJOR MAKER OF PHARMACEUTICALS BASED IN WHITEHOUSE STATION NJ TO ISSUE NEARLY 2 BILLION OF NEW DEBT TO COMPLETE THE PROPOSED 6 BILLION ACQUISITION HOWEVER STRONG CASH GENERATION FROM MERCK'S HIGHLY PROFITABLE PHARMACEUTICAL BUSINESS SHOULD ALLOW FOR A RAPID REDUCTION IN DEBT NOTWITHSTANDING THE PROSPECTS OF SLOWER SALES GROWTH MOODY'S SAID THE UPGRADE OF MEDCO'S LONGTERM DEBT REFLECTS THE SUPPORT THAT THE COMPANY WILL RECEIVE FROM BECOMING PART OF A LARGER FINANCIALLY STRONG ENTERPRISE THE RATINGS AGENCY ADDED 9310270018 931027 BUSINESS BRIEF BARNETT BANKS FACES FEDERAL INVESTIGATION OF MORTGAGE LOANS WASHINGTON THE JUSTICE DEPARTMENT IS STUDYING MORTGAGELENDING PRACTICES BY BARNETT BANKS INC TO DETERMINE WHETHER THE JACKSONVILLE FLA COMPANY HAS DISCRIMINATED AGAINST MINORITIES BARNETT IS THE SECOND BANK KNOWN TO BE UNDER FEDERAL INVESTIGATION AS PART OF A CLINTON ADMINISTRATION'S CRACKDOWN AGAINST DISCRIMINATORY LENDING FEDERAL OFFICIALS SAID THAT THE JUSTICE DEPARTMENT LAUNCHED AN INVESTIGATION OF SHAWMUT NATIONAL CORP AFTER A FEDERAL RESERVE BANK OF BOSTON STUDY RAISED QUESTIONS ABOUT LENDING PRACTICES OF THE HARTFORD CONN COMPANY OFFICIALS CONFIRMED THE BARNETT INVESTIGATION AFTER IT WAS REPORTED IN THE AMERICAN BANKER YESTERDAY SEPARATELY BARNETT ASKED A FEDERAL COURT TO ALLOW ITS RECENTLY ACQUIRED INSURANCE AGENCY TO CONTINUE OPERATIONS THE MOVE FOLLOWS AN ORDER ISSUED FRIDAY BY THE FLORIDA DEPARTMENT OF INSURANCE WHICH INSTRUCTED ALL AGENTS AFFILIATED WITH THE LINDA CLIFFORD INSURANCE AGENCY IN BELLEVIEW FLA TO STOP SELLING INSURANCE BARNETT PURCHASED THE AGENCY EARLY LAST WEEK BARNETT SAID LAST WEEK THAT IT INTENDS TO USE ITS NEW PURCHASE IN BELLEVIEW AS A SPRINGBOARD TO SELL AUTO HOMEOWNER AND LIFE INSURANCE TO CUSTOMERS IN FLORIDA UNDER FEDERAL LAW BANKS ARE ALLOWED TO OWN AND OPERATE INSURANCE AGENCIES FROM TOWNS WITH FEWER THAN 5000 RESIDENTS THE LAW BARNETT SAYS WAS UPHELD IN JULY BY A US APPELLATE COURT IN WASHINGTON DC ACCORDINGLY BARNETT FILED SUIT LAST FRIDAY AGAINST STATE REGULATORS ASKING A FEDERAL COURT IN OCALA FLA TO AFFIRM THAT THE FEDERAL LAW OVERRIDES A FLORIDA LAW THAT PROHIBITS BANKS FROM SELLING INSURANCE STATE OFFICIALS COULDN'T BE REACHED FOR COMMENT 9310270017 931027 INSIDE TRACK FEDERAL EXPRESS SHARES ARE SOLD BY OFFICIALS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL EXPRESS CORP INSIDERS ARE SELLING HEFTY PARCELS OF THEIR HOLDINGS SALES OF COMPANY STOCK BY SENIOR MANAGEMENT ARE WELL ABOVE THE NORM RECENT SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW NOT SURPRISINGLY THE ACCELERATED DISPOSALS AT THE GLOBAL EXPRESSDELIVERY GIANT COME AT A TIME WHEN THE STOCK IS TRADING AT 52WEEK HIGHS SUGGESTING SENIOR MANAGERS MAY VIEW THEIR HIGHFLYING SHARES AS OVERVALUED OFFICIALS AT THE MEMPHIS TRANSPORT GROUP DECLINED TO COMMENT ABOUT THE STOCK SALES A SPOKESMAN SAYS THE SALES ARE STRICTLY PERSONAL MATTERS ALTHOUGH HE ACKNOWLEDGES THAT THE SHARP RUNUP IN THE SHARE PRICE MAY HAVE SOMETHING TO DO WITH THE SALES FEDERAL EXPRESS CLOSED AT 67875 UP 875 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE CLOSE REPRESENTS A SURGE OF MORE THAN 20 FROM LEVELS IN MIDJUNE AND REFLECTS A MULTIPLE OF AROUND 27 TIMES TRAILING PAST FOURQUARTERS' EARNINGS YOU CAN MAKE THE ARGUMENT THAT ON A VALUATION BASIS THE STOCK HAS RUN AHEAD OF ITS SHORTTERM FUNDAMENTALS SAYS SAMUEL BUTTRICK AN ANALYST WITH KIDDER PEABODY IN NEW YORK MUCH OF THE PROBLEM HE SAYS IS THE RESULT OF FEDERAL EXPRESS HAVING RECENTLY BESTED ANALYSTS' EXPECTATIONS FOR QUARTERLY EARNINGS FOR THE FISCALFIRST QUARTER ENDED AUG 31 THE COMPANY HAD NET INCOME OF 60 CENTS A SHARE WELL ABOVE CONSENSUS ESTIMATES OF 49 CENTS A SHARE SUCH ROBUST EARNINGS GROWTH HAS GENERATED A WAVE OF MOMENTUMINVESTING SUPPORT FOR THE STOCK THAT MAY BE EXAGGERATING THE EXPRESSDELIVERY GROUP'S TRUE PERFORMANCE POTENTIAL HE SAYS WHILE I THINK THAT FUNDAMENTALS AT FEDERAL CONTINUE TO BE STRONG WITH TREMENDOUS PROGRESS HAVING BEEN MADE IN BRINGING DOWN INTERNATIONAL LOSSES AND WITH LESSSEVERE PRICE COMPETITION IN SOME DOMESTIC MARKETS IT WOULD APPEAR THAT THE MOMENTUM FOLKS ARE GETTING HOLD OF THE COMPANY'S SHARES MR BUTTRICK SAYS INDEED BROKERAGE ALEX BROWN & SONS DOWNGRADED THE STOCK TO NEUTRAL FROM BUY SEPT 20 WHEN FEDERAL EXPRESS TRADED AT 5888 PERRY BOYLE WHO TRACKS FEDERAL EXPRESS FOR THE BROKERAGE FIRM SAID THE DOWNGRADE WAS MADE OUT OF CONCERN THAT DOMESTIC OPERATING MARGINS HAVE BEEN TRENDING DOWN AND THAT AIRBORNE FREIGHT CORP A COMPETITOR SEEMS TO BE GAINING MARKET SHARE ON FEDERAL EXPRESS RICHARD FOOTE AN ANALYST WITH ARGUS RESEARCH IN NEW YORK SAYS THE BIG QUESTION MARK FOR FEDERAL EXPRESS REMAINS ITS LOSSPLAGUED OVERSEAS OPERATIONS WHAT THE MARKET IS SUGGESTING IS THAT THE EUROPEAN OPERATIONS CONTINUE TO IMPROVE I'VE GOT THE STOCK RATED AS A HOLD' BECAUSE HE SAYS HE'S UNSURE IF THE COMPANY CAN ENGINEER A TURNAROUND IN EUROPE WHICH REMAINS MIRED IN A SLOWGROWTH ECONOMIC ENVIRONMENT ADDS PAUL SCHLESINGER OF DONALDSON LUFKIN & JENRETTE I THINK THE COMPANY IS IN A WHOLE LOT BETTER POSITION THAN A YEAR AGO BUT AT NEARLY 68 A SHARE I THINK IT'S FAIRLY VALUED RIGHT NOW THE MARKET IS RESPONDING TO EARNINGS MOMENTUM WITH SEEMING DISREGARD TO WHAT I CONSIDER TO BE A DETERIORATING QUALITY OF EARNINGS HE SAYS MAINTAINING PROFITABILITY OF DOMESTIC OPERATIONS IS JUST AS IMPORTANT AS BRINGING DOWN INTERNATIONAL LOSSES YET DOMESTIC EARNINGS HAVE BEEN FLAT FOR A WHILE HAVING PEAKED IN 1991 KEY SELLERS AT THE COMPANY INCLUDE ITS NO 2 OFFICIAL WILLIAM J RAZZOUK THE EXECUTIVE VICE PRESIDENT SOLD 2800 SHARES OR ONETHIRD OF HIS DIRECT HOLDINGS SEPT 20 AT AN AVERAGE PRICE OF 6250 A SHARE THE SEC FILINGS SHOW THOSE FILINGS INDICATE THAT MR RAZZOUK HAS OPTIONS TO ACQUIRE SOME 30000 ADDITIONAL SHARES DAVID BRONCZEK WHO RUNS EUROPEAN AND AFRICAN OPERATIONS SOLD 750 SHARES OR NEARLY HALF OF HIS DIRECT HOLDINGS AT AN AVERAGE OF 59 A SHARE FROM SEPT 15 TO SEPT 28 SEC DATA SHOW HE HOLDS OPTIONS TO ACQUIRE AN ADDITIONAL 10000 SHARES JAMES PERKINS VICE PRESIDENT FOR HUMAN RESOURCES SOLD 2500 SHARES OR HALF OF HIS DIRECT HOLDINGS AT 5440 A SHARE IN JULY MR PERKINS IS ONE OF FOUR FEDERAL EXPRESS INSIDERS WHO RECENTLY NOTIFIED THE SEC OF THEIR INTENTION TO SELL A COMBINED 10600 SHARES AROUND NOV 12 ANALYSTS WHO TRACK INSIDER ACTIVITY SAY THE STEPPEDUP PACE OF SELLING IS TROUBLING BUT THEY ADD IT APPEARS CHIEFLY TO REFLECT PROFITTAKING MOTIVES AMONG SENIOR EXECUTIVES RATHER THAN CONCERNS ABOUT ANY FUNDAMENTAL DETERIORATION OF PERFORMANCE IN THE COMING YEAR A NUMBER OF THESE SAME INSIDERS HAVE SHOWN A KNACK FOR TIMING IN THE PAST THESE GUYS ARE GOOD SAYS BOB GABELE PRESIDENT OF CDA/INVESTNET A FORT LAUDERDALE FLA COMPANY THAT TRACKS AND ANALYZES INSIDER ACTIVITY THEY CAUGHT THIS YEAR'S EARLY PEAK IN THE 55 TO 60 RANGE BEFORE THE SHARES BACKED OFF TO THEIR SUMMER LOWS OF 44 HE POINTS OUT THEY ALSO SOLD AT 1992'S PEAK PRICES A 54 TO 55 RANGE BEFORE THE SHARES DROPPED OFF TO LAST YEAR'S LOWS OF 35 TWO QUARTERS LATER MR GABELE ADDS OTHERS AGREE THAT CAUTION IS IN ORDER DESPITE THE COMPANY'S STRONG EARNINGS PERFORMANCE THIS YEAR FEDERAL EXPRESS HAS HAD A HIGH INSIDER SELLTOBUY RATIO AS OF LATE AND THIS IS IN CONFLICT WITH THE POSITIVE ATTITUDE EXPRESSED BY A NUMBER OF ANALYSTS SAYS MICHAEL PAINCHAUD RESEARCH DIRECTOR AT MARKET PROFILE THEOREMS A SEATTLE INVESTMENT ADVISORY GROUP THAT TRACKS INSIDER ACTIVITY THE CURRENT INSIDER SELLING SHOULD ELICIT CAUTION REGARDING THE FUTURE OF THE STOCK DOUG ROCKEL AN ANALYST WITH MERRILL LYNCH THINKS THE STOCK IS A SOLID LONGTERM BET THE STOCK HAS HAD A GOOD RUN HE SAYS I'VE GOT IT RATED A NEUTRAL' IN THE INTERMEDIATETERM AND I RATE IT ABOVEAVERAGE' LONGER TERM THE MERRILL ANALYST INSISTS THAT FEDERAL EXPRESS'S EARNINGS ARE ON A ROLL POINTING OUT THAT THE COMPANY'S FUTURE PROFITS ARE LIKELY TO COMPARE FAVORABLY WITH RELATIVELY DEPRESSED NET INCOME FIGURES OF RECENT YEARS THEY HAVE REESTABLISHED THEIR EARNINGS MOMENTUM NEXT QUARTER WILL BE UP BIG AGAIN HE PREDICTS ANALYSTS' ESTIMATES FOR PERSHARE EARNINGS FOR THE YEAR ENDING MAY 1994 HAVE BEEN RACHETING DOWN TO ABOUT 330 A SHARE FROM 340 A MONTH AGO FISCAL 1993 NET WAS 201 A SHARE 9310270016 931027 BUSINESS BRIEF GREYHOUND LINES INC NET FELL 11 IN 3RD QUARTER AS TRAFFIC DECREASED 79 STRUGGLING GREYHOUND LINES INC'S EARNINGS DECLINED 11 IN THE THIRD QUARTER LARGELY BECAUSE OF A 79 SLUMP IN TRAFFIC AND PROBLEMS WITH ITS COMPUTERIZEDRESERVATIONS SYSTEM IN WHAT IS TRADITIONALLY ITS STRONGEST QUARTER THE BUS OPERATOR REPORTED NET OF 134 MILLION DOWN FROM 15 MILLION A YEAR EARLIER EARNINGS PER SHARE WERE 90 CENTS DOWN FROM 152 AFTER A 32 INCREASE IN SHARES OUTSTANDING REVENUE WAS 1946 MILLION DOWN 32 FROM THE PRIOR YEAR'S 2011 MILLION THE RESULTS DIDN'T SURPRISE WALL STREET GREYHOUND CLOSED UNCHANGED AT 1350 YESTERDAY IN AMERICAN STOCK EXCHANGE TRADING ANALYSTS SAID THAT FULLY DILUTED NET OF 65 CENTS A SHARE FOR THE QUARTER WAS IN THE HIGH END OF EXPECTATIONS IN ITS NEWS RELEASE THE COMPANY SAID THAT SUMMER TRAFFIC DIDN'T MEET ITS EXPECTATIONS DECLINING TO 174 BILLION REVENUE PASSENGER MILES FOR THE QUARTER FROM 189 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PASSENGER TRAVELLING ONE MILE 9310270015 931027 SECOM GENERAL CORP LIVONIA MICH SECOM GENERAL CORP SAID IT EXPECTS TO RECORD A LOSS OF 24 MILLION OR 84 CENTS A SHARE ON THE SALE OF THE ASSETS OF TWO TRITEC PLASTICS CORP FACILITIES IN CALIFORNIA SECOM SAID TRITEC WILL RETAIN ITS ACCOUNTS RECEIVABLES AND WILL USE THE 22 MILLION PROCEEDS FROM THE SALE TO PAY OFF DEBTS OF THE TRITEC SUBSIDIARY SECOM MAKES TOOLS AND METAL PARTS FORMING EQUIPMENT 9310270014 931027 CORPORATE FOCUS DOLAN HOLDS COURT FOR SUITORS OF CABLEVISION SYSTEMS TELEPHONE COMPANIES WOO CABLE OPERATOR AND PURVEYOR OF PROGRAMMING BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AT 67 YEARS OLD CABLEVISION SYSTEMS CORP CHAIRMAN CHARLES CHUCK DOLAN IS A PRIME CANDIDATE TO CASH OUT OF THE CABLE BUSINESS TODAY AFTER THREE DECADES AS A LEADER IN AN INDUSTRY HE HELPED CREATE HE CONTROLS A COMPANY FACING NEW RATE REGULATIONS INCREASING COMPETITION AND OVER 2 BILLION IN DEBT ADD TO THAT THE PROSPECT OF SPENDING BILLIONS TO UPGRADE HIS PLANT AND OFFER MYRIAD NEW INTERACTIVE SERVICES AFTER THE RECENT PROPOSAL BY BELL ATLANTIC CORP TO ACQUIRE CABLE GIANT TELECOMMUNICATIONS INC CABLEVISION IS A HOT PROPERTY INDEED TELEPHONE COMPANIES ARE NOW COURTING CABLEVISION HOPING TO STRIKE A DEAL WITH THE FIFTHLARGEST CABLE OPERATOR THAT IS ALSO A MAJOR PURVEYOR OF PROGRAMMING NONETHELESS MR DOLAN ISN'T READY FOR A ROCKING CHAIR THIS IS A FUN BUSINESS HE SAYS AND THE REAL EXCITEMENT IS JUST AHEAD HE DECLINES TO SAY WHICH TELEPHONE COMPANIES CABLEVISION IS MEETING WITH BUT ADDS WE'RE ALWAYS TALKING THERE HAVE BEEN MANY DISCUSSIONS EVEN BEFORE THE TCIBELL ATLANTIC DEAL INDEED CABLEVISION WAS IN TALKS WITH BELL ATLANTIC BEFORE IT AGREED TO ACQUIRE TCI U S WEST INC AND CHICAGO REGIONAL PHONE COMPANY AMERITECH CORP ARE NOW AMONG MR DOLAN'S SUITORS IN ADDITION TO ITS CABLE OPERATIONS CABLEVISION'S RAINBOW PROGRAMMING HOLDINGS INC SUBSIDIARY HAS STAKES IN POPULAR CABLE NETWORKS SUCH AS AMERICAN MOVIE CLASSICS BRAVO COURT TV AND PRIME SPORTSCHANNEL NETWORKS WHICH IS A COLLECTION OF REGIONAL SPORTS NETWORKS THAT REACHES ABOUT 30 MILLION HOMES CABLEVISION HOPES TO LURE MANY AMERICAN MOVIE CLASSICS SUBSCRIBERS WITH A NEW CHANNEL ROMANCE CLASSICS TO BE LAUNCHED IN EARLY 1994 IN AN EFFORT TO MAXIMIZE RAINBOW'S VALUE MR DOLAN SAYS THE COMPANY WILL SPIN OFF RAINBOW TO SHAREHOLDERS BY EARLY NEXT YEAR MR DOLAN OWNS ABOUT 50 OF THE COMPANY'S STOCK AND CONTROLS 90 OF THE VOTING POWER HE IS NOT LIKELY TO GIVE UP CONTROL READILY WHATEVER HE DECIDES THOUGH ONE RESULT IS CERTAIN SHOULD A TELEPHONE COMPANY ULTIMATELY STRIKE A DEAL WITH MR DOLAN IT WOULD BENEFIT HANDSOMELY BY DRAWING ON THE EXPERIENCE OF A SAVVY TRAILBLAZER THE PHONE COMPANIES ARE FILLED WITH ENGINEERS SAYS ALVIN MIRMAN A TELECOMMUNICATIONS ANALYST WITH GRUNTAL & CO YOU TAKE A GUY LIKE DOLAN ONE OF HIS BIGGEST STRENGTHS IS DEVELOPING PROGRAMMING CONCEPTS THE TELEPHONE COMPANIES SIMPLY DON'T HAVE THAT RESOURCE SERVING MORE THAN TWO MILLION SUBSCRIBERS IN 19 STATES CABLEVISION HAS THE INDUSTRY'S HIGHEST REVENUE AND CASH FLOW PER CABLE HOME MANY OF ITS SYSTEMS ARE CONCENTRATED IN LARGE METROPOLITAN AREAS SUCH AS NEW YORK BOSTON AND CHICAGO A CLUSTERING TACTIC THAT CABLE COMPANIES HAVE LONG PURSUED AND THAT TELEPHONE COMPANIES FIND EXTREMELY ATTRACTIVE IN LONG ISLAND NY ALONE CABLEVISION OPERATES THE NATION'S LARGEST SINGLE SYSTEM SERVING 600000 CUSTOMERS THE PROXIMITY OF CABLEVISION'S LONG ISLAND SYSTEMS TO TIME WARNER INC'S CABLE SYSTEM IN MANHATTAN LEADS SOME ANALYSTS TO SPECULATE THAT A COMBINATION WITH U S WEST MAKES STRATEGIC SENSE THIS YEAR U S WEST INVESTED 25 BILLION FOR A 25 STAKE IN TIME WARNER'S ENTERTAINMENT AND CABLE OPERATIONS NOT ALL OF CABLEVISION'S ENDEAVORS HAVE BEEN WINNERS THE COMPANY POSTED 50 MILLION IN LOSSES LAST YEAR RELATED TO THE TRIPLECAST PAYPERVIEW COVERAGE OF THE 1992 SUMMER GAMES A JOINT VENTURE WITH GENERAL ELECTRIC CO'S NBC UNIT THROUGH THE YEARS THE COMPANY HAS BEEN FINANCED LARGELY THROUGH LIMITED PARTNERSHIPS DEALS WHICH HAVE COME BACK TO HAUNT MR DOLAN WHEN DISGRUNTLED PARTNERS FELT THEY DIDN'T GET THEIR FAIR SHARE IN JANUARY 1992 MR DOLAN PAID A SUBSTANTIAL AMOUNT TO SETTLE A LAWSUIT FILED AGAINST HIM BY INVESTORS IN A LIMITED PARTNERSHIP FURTHERMORE MR DOLAN CONTINUES TO FIGHT IRS CLAIMS THAT HE OWES ABOUT 234 MILLION IN BACK INCOME TAXES AND FINES FOR 1984 AND 1986 THROUGH 1988 RESULTING FROM FAMILY TRUSTS AND BUSINESS DEALINGS HIS ATTORNEY SAYS ANY TAX LIABILITIES INVOLVE MOSTLY PERSONAL TRANSACTIONS IN CABLE TV PARTNERSHIPS AND WON'T AFFECT CABLEVISION MR DOLAN IS A PRIVATE MAN WHO OVER THE YEARS HAS PURSUED A STRATEGY OF AGGRESSIVELY DEPLOYING HIGHCAPACITY OPTICAL FIBER TO SUBSCRIBERS' HOMES ALL THE WHILE EXPANDING HIS PORTFOLIO OF PROGRAMMING THERE'S NO SHORTAGE OF GUYS IN THIS BUSINESS WHO LIKE TO DO A LOT OF TALKING SAYS ALAN GERRY CHAIRMAN AND FOUNDER OF CABLEVISION INDUSTRIES INC A CABLE OPERATOR BUT THERE IS A SCARCITY OF PEOPLE LIKE CHUCK HE'S ALWAYS BEEN THERE A DAY EARLY WITH HIS IDEAS IN 1961 MR DOLAN ESTABLISHED IN MANHATTAN THE NATION'S FIRST URBAN SYSTEM KNOWN TODAY AS TIME WARNER CABLE WHILE VIEWERS INITIALLY PURCHASED THE SERVICE FOR BETTER RECEPTION MR DOLAN ATTRACTED MORE SUBSCRIBERS BY AIRING THE NEW YORK KNICKS BASKETBALL GAMES AND NEW YORK RANGERS HOCKEY MATCHES IN 1972 HE STARTED HOME BOX OFFICE THE FIRST PREMIUM PAYCABLE SERVICE TIME INC SUBSEQUENTLY ACQUIRED THE CABLE AND HBO OPERATIONS MR DOLAN IS STILL PUSHING HIS COMPANY TO THE INDUSTRY'S CUTTING EDGE EARLIER THIS YEAR CABLEVISION UNVEILED PLANS TO SPEND 300 MILLION TO ROLL OUT THE NATION'S LARGEST ELECTRONIC HIGHWAY 3000 MILES OF HIGHCAPACITY FIBER IN THE NEW YORK METROPOLITAN AREA THE FIBEROPTIC SYSTEM NOW UNDER CONSTRUCTION WILL INITIALLY PROVIDE MORE CHANNELS LATER IT WILL OFFER MOVIESONDEMAND PHONE SERVICES VIDEOCONFERENCING AND ENTERTAINMENT AND DATA SERVICES THIS SUMMER CABLEVISION SAID IT WOULD TEAM UP WITH RH MACY & CO TO HELP THE RETAILER ROLL OUT TV MACY'S A HOMESHOPPING CHANNEL IN THE FALL OF 1994 PACKAGING SUCH CABLE PROGRAMMING IS A FORTE OF MR DOLAN'S AND ONE REASON CABLEVISION HAS SUCH HIGH REVENUE PER SUBSCRIBER THE COMPANY IS ONE OF THE MOST AGGRESSIVE MARKETERS IN THE CABLE INDUSTRY KNOWN FOR SELLING CHANNELS IN A VARIETY OF PACKAGES NOT COVERED BY RATE RESTRICTIONS A FUNDAMENTAL OBJECTIVE IS TO OFFER A LA CARTE' SERVICES MR DOLAN SAYS IT'S LIKE GOING TO THE SUPERMARKET AND LOOKING FOR THE BEST VALUE YOU CAN FIND IF YOU THINK YOU'RE GETTING A GOOD VALUE YOU'LL FILL THE BASKET 9310270013 931027 BELL SOUTH COX NEWSPAPERS ATLANTA BELLSOUTH ADVERTISING & PUBLISHING CO A UNIT OF BELLSOUTH CORP AND COX NEWSPAPERS INC SAID THEY COMPLETED AN AGREEMENT TO DEVELOP AND MARKET A FAMILY OF NEW ELECTRONIC INFORMATION SERVICES BASED ON NEWSPAPER CLASSIFIED AND YELLOWPAGES ADVERTISING TERMS WERE NOT DISCLOSED IN A NEWS RELEASE THE COMPANIES SAID THE JOINT VENTURE INFOVENTURES OF ATLANTA WILL BE OWNED EQUALLY BY BELLSOUTH AND COX THE COMPANIES ALSO WILL HAVE EQUAL REPRESENTATION ON THE VENTURE'S MANAGEMENT COMMITTEE 9310270012 931027 ENDOSONICS FUNDS DUMED PLAN PLEASANTON CALIF ENDOSONICS CORP REACHED AN AGREEMENT WITH DUMED BV OF THE NETHERLANDS UNDER WHICH IT WILL PROVIDE DUMED WITH FUNDING AND ENGINEERING SUPPORT FOR THE DEVELOPMENT AND MARKETING OF MEDICAL IMAGING DEVICES TERMS WERE NOT DISCLOSED THE MAKER OF MEDICAL IMAGING CATHERS SAID THE AGREEMENT INVOLVES THE DEVELOPMENT AND MARKETING OF MINIATURIZED ELECTRONIC MICROMOTOR MEDICAL IMAGING TECHNOLOGY DEVELOPED BY ERASMUS UNIVERSITY OF ROTTERDAM THE NETHERLANDS 9310270011 931027 COMPUTERVISION CONTRACT BEDFORD MASS COMPUTERVISION CORP SAID UNITED TECHNOLOGIES AUTOMOTIVE A UNIT OF UNITED TECHNOLOGIES CORP SIGNED AN AGREEMENT FOR A SOFTWARE AND SERVICES CONTRACT VALUED AT 994000 IN A NEWS RELEASE COMPUTERVISION SAID THE PURCHASE INCLUDES AN INITIAL ORDER FOR 30 USERS OF CADDS 5 A MAJOR COMPUTERVISION DESIGNSOFTWARE PRODUCT 9310270009 931027 INTERNATIONAL SWEDISH IMPORT EXPORT PRICES STOCKHOLM SWEDISH IMPORT AND EXPORT PRICES ROSE AGAIN IN SEPTEMBER FROM AUGUST BUT THE RATE OF INCREASE WAS LOWER FOR EXPORT PRICES THAN IMPORT PRICES ACCORDING TO FIGURES RELEASED YESTERDAY BY SCB THE NATIONAL STATISTICS AGENCY 9310270008 931027 INTERNATIONAL NORWEGIAN BANK POSTS PROFIT STOCKHOLM DEN NORSKE BANK NORWAY'S BIGGEST BANK POSTED A THIRDQUARTER PROFIT AND SAID IT IS CONSIDERING A MAJOR EQUITY OFFERING EARLY NEXT YEAR THE FIRST STEP TOWARD RETURNING TO PRIVATE OWNERSHIP THE BANK REPORTED THIRDQUARTER OPERATING NET OF 503 MILLION KRONER 687 MILLION COMPARED WITH A YEAREARLIER OPERATING LOSS OF 13 BILLION KRONER THE COMPANY OFFERED NO OFFICIAL FULLYEAR PROFIT FORECAST BUT OFFICIALS HINTED THEY HOPE OPERATING NET WILL APPROACH ONE BILLION KRONER THIS YEAR LOANLOSS PROVISIONS DURING THE THIRD QUARTER WERE TRIMMED TO 541 MILLION KRONER FROM 13 BILLION KRONER A YEAR EARLIER 9310270007 931027 WHO'S NEWS STAR BANC CORP STAR BANC CORP CINCINNATI RICHARD K DAVIS 35 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND HEAD OF CONSUMER BANKING MR DAVIS WHO HAS BEEN EXECUTIVE VICE PRESIDENT AT BANKAMERICA CORP SAN FRANCISCO WILL JOIN STAR BANC NOV 8 MR DAVIS IS PART OF A TOP MANAGEMENT TEAM BEING ASSEMBLED BY STAR BANC'S NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER JERRY A GRUNDHOFER WHO ALSO PREVIOUSLY WORKED AT BANKAMERICA MR DAVIS SUCCEEDS GARY N KOCHER WHO RESIGNED EARLIER THIS MONTH TO PURSUE ANOTHER BUSINESS INTEREST 9310270006 931027 PRICING HEALTH CARE MIDSIZE COMPANIES BIGSIZE TROUBLE BY DAVID BEECH INSUFFICIENT ATTENTION HAS BEEN PAID TO THE IMPACT PRESIDENT CLINTON'S HEALTH CARE REFORM WOULD HAVE ON MIDSIZE EMPLOYERS THE MIDDLE GUYS EMPLOYERS WITH 50 TO 5000 EMPLOYEES WOULD BE TOO BIG FOR A SUBSIDY AND TOO SMALL TO HANDLE THE PLAN'S BURDEN UNDER THE PLAN PREMIUMS WOULD BE CAPPED AT A PERCENTAGE OF PAYROLL DEPENDING ON THE EMPLOYER'S AVERAGE WAGE BUT COST INCREASES WOULD BE INEVITABLE FOR MANY MEDIUMSIZE EMPLOYERS BECAUSE OF INCREASED PARTICIPATION HIGHER FAMILY CONTRIBUTIONS ENRICHED HEALTH BENEFITS MANDATED COVERAGE OF PARTTIME EMPLOYEES AND COMPLEX ADMINISTRATIVE REQUIREMENTS MY COMPANY HAS ESTIMATED THAT HEALTH INSURANCE PREMIUMS FOR A CLIENT FIRM BASED IN THE TWIN CITIES AND WITH ABOUT 1000 FULLTIME AND 100 PARTTIME WORKERS WOULD RISE 43 TO 2 MILLION A YEAR MANY FULLTIME EMPLOYEES DO NOT CURRENTLY ENROLL IN EMPLOYER HEALTH PLANS HELPING REDUCE EMPLOYER COSTS SOME ENROLL INSTEAD IN THEIR SPOUSES' PLANS WHILE OTHERS ELECT TO BUY INDIVIDUAL INSURANCE AT PREMIUMS LOWER THAN THEIR EMPLOYERS CHARGE OR TO GO BARE CONSEQUENTLY ONLY 50 TO 80 OF ELIGIBLE EMPLOYEES TYPICALLY ELECT COVERAGE FROM THEIR EMPLOYERS UNDER THE PRESIDENT'S PLAN EMPLOYERS WOULD BE REQUIRED TO CONTRIBUTE FOR ALL EMPLOYEES THE VAST MAJORITY OF MIDSIZE EMPLOYERS NOW REQUIRE EMPLOYEES TO SHARE THE BURDEN OF HEALTH INSURANCE PREMIUMS TYPICALLY EMPLOYEE CONTRIBUTIONS RANGE FROM 10 TO 30 FOR INDIVIDUALS AND 20 TO 50 FOR FAMILIES THE PRESIDENT'S PROPOSAL GENERALLY WOULD REQUIRE EMPLOYEES TO PAY 20 OF THE COST FOR BOTH EMPLOYEE AND FAMILY COVERAGE THEREFORE MANY EMPLOYERS WOULD PAY CONSIDERABLY MORE FOR FAMILY COVERAGE THAN TODAY MOREOVER EVEN THE LEANEST OPTION UNDER THE PLAN WOULD COVER PREVENTIVE HEALTH EXAMS AND TESTS VISION AND HEARING CARE AND FAMILY PLANNING SERVICES THE PLAN ALSO WOULD PROVIDE GOOD BENEFITS FOR MENTAL HEALTH AND CHEMICAL DEPENDENCY AND PHASE IN VERY GENEROUS BENEFITS BY THE END OF THE DECADE CLEARLY THE HEALTH BENEFITS PROMISED BY THE PRESIDENT ARE MUCH GREATER PERHAPS BY 10 TO 20 IN COST THAN THOSE PROVIDED BY MOST MIDSIZE EMPLOYERS TODAY VERY FEW MIDSIZE EMPLOYERS PROVIDE HEALTH BENEFITS TO PARTTIMERS THE PRESIDENT'S PLAN HOWEVER WOULD REQUIRE EMPLOYERS TO PROVIDE COVERAGE FOR EMPLOYEES WORKING 10 TO 30 HOURS A WEEK THE EMPLOYER COST WOULD BE A PRORATA SHARE OF PREMIUMS FOR FULLTIME EMPLOYEES THAT'S AN AUTOMATIC PREMIUM INCREASE OF 5 TO 10 FOR THE AVERAGE MIDSIZE EMPLOYER MANY OF THE MIDDLE GUYS OFFER SEVERAL HEALTH PLANS AMONG WHICH EMPLOYEES MAY CHOOSE DEPENDING ON THE EMPLOYER'S SIZE AND LOCATION UNDER THE CLINTON PLAN EMPLOYEES WOULD BE FREE TO CHOOSE A HEALTH PLAN FROM ANY OFFERED BY A REGIONAL ALLIANCE IN THE AREA IN WHICH THE EMPLOYEE RESIDES AS A RESULT MANY EMPLOYERS WOULD BE REQUIRED TO TRACK EMPLOYEE ELECTIONS FOR DOZENS OR EVEN HUNDREDS OF DIFFERENT HEALTH PLANS FOR EXAMPLE IF ALL EMPLOYEES ARE IN ONE METROPOLITAN AREA AN EMPLOYER MIGHT HAVE TO TRACK ELECTIONS AND DEDUCT EMPLOYEE PREMIUM CONTRIBUTIONS FOR PERHAPS 10 TO 20 PLANS HOWEVER IF EMPLOYEES ARE SCATTERED ACROSS 20 STATES THE EMPLOYER WOULD NEED TO TRACK HUNDREDS OF DIFFERENT HEALTH INSURANCE OPTIONS AND REMIT PREMIUMS TO AT LEAST 20 REGIONAL ALLIANCES VERY FEW COMPANIES HAVE THE TECHNOLOGY TO HANDLE THIS RECORDKEEPING THIS REQUIREMENT ALONE COULD ADD AT LEAST 3 TO 5 TO THE COST OF PROVIDING COVERAGE THE PRESIDENT'S PLAN WOULD IMPOSE ADDITIONAL ADMINISTRATIVE CHORES ON EMPLOYERS INCLUDING COMPLEX COMPLIANCE TESTS AND REPORTING REQUIREMENTS ADDING MORE COST AND CONTRADICTING THE PRESIDENT'S GOAL OF REDUCING BUREAUCRACY OUR TWIN CITIES CLIENT WOULD HAVE TO FIND AN EXTRA 600000 A YEAR TO PAY FOR THE CLINTON PLAN UNFORTUNATELY THE COMPANY'S 2 MILLION HEALTH CARE BURDEN WOULD FALL JUST UNDER THE 79 PREMIUM CAP ONLY 65 OF EMPLOYEES NOW PARTICIPATE IN ANY OF THE THREE HEALTH PLANS OFFERED BY THE COMPANY WHICH PAYS 80 OF THE COST OF EMPLOYEE COVERAGE AND 50 FOR DEPENDENTS MOREOVER OUR CLIENT HAS EMPLOYEES LIVING IN FOUR STATES ASSUMING ONE ALLIANCE PER STATE FIVE PLANS PER ALLIANCE AND THREE COVERAGE OPTIONS PER PLAN THIS COMPANY WOULD BE REQUIRED TO TRACK 60 HEALTH PLANS MANY MIDSIZE EMPLOYERS OPERATE ON EXTREMELY TIGHT PROFIT MARGINS THEIR VERY EXISTENCE AND THE JOBS THEY PROVIDE COULD BE THREATENED MR BEECH IS A PARTNER IN THE HUMAN RESOURCE ADVISORY GROUP AT COOPERS & LYBRAND IN MINNEAPOLIS 9310270005 931027 SHORT INTEREST HIGHLIGHTS NASDAQ ISSUES THE SHORT INTEREST RATIO IS THE NUMBER OF DAYS IT WOULD TAKE TO COVER THE SHORT INTEREST IF TRADING CONTINUED AT THE AVERAGE DAILY VOLUME FOR THE MONTH 9310270004 931027 WHO'S NEWS TEXACO INC TEXACO INC WHITE PLAINS NY FRANKLYN G JENIFER 54 YEARS OLD PRESIDENT OF HOWARD UNIVERSITY IN WASHINGTON WAS ELECTED TO THIS OIL COMPANY'S BOARD EFFECTIVE NOV 1 THE BOARD GROWS TO 15 DIRECTORS 9310270002 931008 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN GERMANY'S JOBS CRISIS WORSENED AS THE USUAL SEPTEMBER REVIVAL IN EMPLOYMENT DIDN'T MATERIALIZE THIS YEAR WESTERN GERMAN UNEMPLOYMENT TOTALED 2288052 OR 74 OF THE WORK FORCE DOWN FROM 2314927 OR 75 IN AUGUST BUT WHEN SEASONALLY ADJUSTED THE TOTAL ROSE 42000 OUTPACING A RISE OF 27000 IN AUGUST AND WESTERNERS ON SHORT SHIFTS CONSIDERED TO BE THREATENED JOBS SHOT UP TO 590390 FROM 397599 IN PAST SEPTEMBERS JOBLESSNESS FELL SHARPLY AS INDUSTRIES RESUMED REGULAR OUTPUT AFTER SUMMER VACATIONS HOPES FOR RECOVERY FROM RECESSION WERE ALREADY CLOUDED BY AUGUST'S 2 DROP IN INDUSTRY ORDERS FROM JULY THE EASTERN REGION'S JOBLESS TOTAL EASED TO 1159191 OR 152 IN SEPTEMBER FROM 154 IN AUGUST PUTTING PANGERMAN UNEMPLOYMENT AT 34 MILLION NEXT YEAR 500000 MORE JOBS COULD BE LOST AS INDUSTRY CONTINUES TO RESTRUCTURE EMPLOYERS BLAME LABOR COSTS THE WORLD'S HIGHEST FOR SHARP DROPS IN PRODUCTIVITY BUT LABOR CONFLICTS LOOM FROM REMEDIES SUCH AS LONGER HOURS AND LESS PAY THE ASIAPACIFIC ECONOMIC COOPERATION FORUM WILL ISSUE A DECLARATION AT ITS ANNUAL MEETING NEXT MONTH IN SEATTLE THAT COULD ESTABLISH A LEADING ROLE FOR THE GROUP IN PACIFIC RIM TRADE RELATIONS THE TRADE AND INVESTMENT FRAMEWORK IS INTENDED TO BOOST THE GLOBAL ECONOMIC INFLUENCE OF APEC WHICH REPRESENTS TWO BILLION PEOPLE AND 40 OF WORLD TRADE AND IT WOULD PURSUE LIBERALIZED TRADE WITHIN APEC THE US CANADA JAPAN SOUTH KOREA CHINA TAIWAN HONG KONG THE PHILIPPINES BRUNEI INDONESIA SINGAPORE MALAYSIA THAILAND AUSTRALIA AND NEW ZEALAND A HONG KONG NEWSPAPER REPORTER DETAINED SEPT 27 IN BEIJING ON SUSPICION OF ESPIONAGE WAS OFFICIALLY ARRESTED CHINA'S STATE RADIO SAID THE MING PAO REPORTER XI YANG AND A CLERK AT THE PEOPLE'S BANK OF CHINA TIAN YE PLEADED GUILTY TO CRIMINAL CHARGES OF LEAKING DATA THE REPORT SAID TIAN YE UNDER THE GUIDANCE OF XI YANG ILLEGALLY PROVIDED A LARGE QUANTITY OF FINANCIAL SECRETS THE RADIO SAID INCLUDING PLANNED INTERESTRATE ADJUSTMENTS AND PEOPLE'S BANK STRATEGIES FOR PARTICIPATING IN AN INTERNATIONAL GOLD MEETING URBAN HOUSEHOLD INCOME IN SOUTH KOREA INCREASED 31 IN THE SECOND QUARTER TO AN AVERAGE OF 15900 A MONTH THE INFLATIONADJUSTED GROWTH FROM THE YEAREARLIER QUARTER WAS THE SMALLEST IN 12 YEARS BECAUSE OF GOVERNMENT WAGE RESTRAINTS AND THE PERSISTENTLY STAGNANT ECONOMY THE SLUGGISHNESS ALSO WAS REFLECTED IN THE HOUSEHOLD SPENDING AVERAGE OF 1300 A MONTH UP 10 BUT A SHARP SLOWDOWN FROM THE 19 RISE IN THE 1992 SECOND QUARTER HUNGARY'S TRADE DEFICIT INCREASED 1514 MILLION IN AUGUST EXPANDING THE GAP FOR THIS YEAR'S FIRST EIGHT MONTHS TO 232 BILLION EXPORTS PLUNGED 25 FROM A YEAR EARLIER TO 525 BILLION WHILE IMPORTS GREW JUST 21 TO 757 BILLION THE AGRICULTURE SECTOR PERFORMED THE WORST AS EXPORTS OF FARM AND FOOD PRODUCTS SANK 37 EXPORTS TO THE EUROPEAN COMMUNITY SKIDDED 33 AND IMPORTS FROM THE EC EDGED UP 1 SHIPMENTS TO WESTERN NATIONS PLUMMETED 30 WHILE IMPORTS ROSE 27 EXPORTS TO FORMER EAST BLOC COUNTRIES FELL 13 AND IMPORTS SLIPPED 11 SPAIN'S FEDERAL AND REGIONAL GOVERNMENTS AGREED TO DECENTRALIZE CONTROL OF INCOMETAX REVENUES DESPITE CONCERN THAT THIS COULD LEAD TO REGIONAL INEQUITIES THE PACT TO BE PUT IN THE NATIONAL BUDGET TO BE DEBATED SOON BY PARLIAMENT WOULD APPLY THROUGH 1996 IT WOULD ALLOW REGIONS WHICH HAVE LONG CAMPAIGNED FOR GREATER CONTROL TO RETAIN 15 OF THEIR TAX COLLECTIONS THE PLAN COULD ENCOURAGE REGIONS TO IMPROVE TAX ENFORCEMENT AS WELL AS SPREAD BLAME FOR RISING TAXES A PROBLEM FOR THE MINORITY GOVERNMENT THE RULING SOCIALISTS LOST A PARLIAMENTARY MAJORITY IN JUNE ELECTIONS TAIWAN WILL REMODEL ENTERTAINMENT FACILITIES AND BUILD NEW ONES IN DEVELOPING 36 TOURISM ZONES BY THE YEAR 2001 MOST OF THE PROJECTS WILL BE OPEN TO FOREIGN INVESTORS ATTRACTIONS ON TAIWAN IN 1992 ATTRACTED 70 MILLION VISITORS INCLUDING TWO MILLION FOREIGN TOURISTS BUT OUR ENTERTAINMENT FACILITIES HAVE FAILED TO KEEP PACE WITH TOURISM NEEDS BECAUSE WE HAVE CONCENTRATED ON BUILDING UP EXPORTS IN THE PAST THE TOURISM BUREAU SAID THE AGENCY SAID TAIWAN NEEDS TO BUILD HOTELS WITH AT LEAST 120000 ROOMS BY 1996 LAST YEAR 42 MILLION TAIWAN RESIDENTS TRAVELED ABROAD AND SPENT 72 BILLION AS AGING RESORTS AND TRAFFIC JAMS DISCOURAGED SOME DOMESTIC TOURISM THIS YEAR OVERSEAS TRAVEL SPENDING COULD TOP 8 BILLION THE GOVERNMENT'S COUNCIL FOR ECONOMIC PLANNING AND DEVELOPMENT PREDICTED ANNUAL TOURISM REVENUE OF 373 BILLION ONCE THE ZONES ARE COMPLETED CHINA HAS BECOME THE BIGGEST SOURCE OF FOREIGN INVESTMENT IN HONG KONG TOTALING AT LEAST 12 BILLION A HANG SENG BANK LTD STUDY SAID SUGGESTING THAT CHINESE INTERESTS WILL DEMAND MORE INFLUENCE IN RUNNING THE BRITISH COLONY'S BUSINESSES A GOLD COIN STRUCK BY MARCUS JUNIUS BRUTUS A ROMAN SENATOR WHO CONSPIRED TO MURDER THE EMPEROR JULIUS CAESAR WILL BE AUCTIONED OCT 26 IN ZURICH SOTHEBY'S AUCTIONEERS SAID THE IDES OF MARCH COIN NAMED AFTER THE DAY OF THE ASSASSINATION IN 44 BC IS ONE OF ONLY TWO KNOWN TO EXIST AND COULD SELL FOR AS MUCH AS 380000 URBAN HOUSEHOLD INCOME IN SOUTH KOREA INCREASED 31 IN THE SECOND QUARTER TO AN INFLATIONADJUSTED AVERAGE OF 15900 A YEAR NOT A MONTH AS REPORTED IN THE OCT 8 WORLD WIRE COLUMN 9310270148 930915 INTO THE FRAY STAID COX ENTERPRISES STIRS READY TO JOIN THE MEDIA SWEEPSTAKES ATLANTA FIRM EYES EXPANSION IN CABLE PHONE SERVICE TELEVISION PROGRAMMING BE A PLAYER OR BE LEFT BEHIND' BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA COX ENTERPRISES INC A BIG FAMILYOWNED MEDIA COMPANY HAS LONG PREFERRED A SAFE HARBOR TO ROCKING ITS CORPORATE BOAT BUT NOW FACING HEAVY COMPETITIVE PRESSURES IN A HIGHSTAKES INDUSTRY IT SEEMS TO BE EMBARKING ON A MAJOR EXPANSION PROGRAM IN THE PAST SIX MONTHS JAMES COX KENNEDY THE COMPANY'S CHAIRMAN HAS TEAMED IT UP WITH SOUTHWESTERN BELL CORP TO PROVIDE CABLE AND PHONE SERVICE IN BRITAIN HE HAS JOINED WITH BELLSOUTH CORP AND PRODIGY SERVICES CO TO SUPPLY INFORMATION TO COMPUTERS AND HE TOOK A 125 STAKE IN POLAND'S LARGEST NEWSPAPER THOSE MOVES ARE SMALL POTATOES IN COMPARISON TO WHAT MAY LIE AHEAD NOW MR KENNEDY WANTS TO DOUBLE THE SIZE OF COX'S CABLE DIVISION ALREADY THE NATION'S SIXTHLARGEST SYSTEM AS FAST AS HE CAN THOUGH HE WON'T SPECIFY ANY POSSIBLE ACQUISITIONS HE IS TALKING WITH SOME REGIONAL BELL AND LONGDISTANCE PHONE COMPANIES ABOUT OFFERING CABLE AND PHONE SERVICE IN EACH OTHER'S US MARKETS SOUTHWESTERN IS WIDELY VIEWED AS THE LEADING CONTENDER AND HE HAS BEEN DISCUSSING SOME TYPE OF PROGRAMMING PARTNERSHIP POSSIBLY IN INTERNATIONAL MARKETS WITH TURNER BROADCASTING SYSTEM INC EVEN CONTEMPLATING SUCH MOVES AMID THE RAPID COSTLY CHANGES IN TELECOMMUNICATIONS MAKES MR KENNEDY A BIT NERVOUS HE CONCEDES BUT YOU'RE EITHER GOING TO BE A PLAYER HE SAYS OR YOU'RE GOING TO SIT ON THE SIDELINES AND BE LEFT BEHIND FOR DECADES THE COMPANY SEEMED TO PREFER THE SIDELINES COX'S FLAGSHIP ATLANTA NEWSPAPERS ARE STILL ECLIPSED IN JOURNALISM CIRCLES ANYWAY BY MORE PROMINENT REGIONAL PAPERS SUCH AS THE BOSTON GLOBE AND PHILADELPHIA INQUIRER ITS CABLE OPERATIONS ARE OVERSHADOWED BY GIANTS SUCH AS TIME WARNER INC AND TELECOMMUNICATIONS INC THE BIGGEST TRANSACTION OF MR KENNEDY'S SIXYEAR REIGN REMAINS AN ACQUISITION THAT BEEFED UP COX'S AUTOAUCTION OPERATIONS COX IN FACT HAS RESEMBLED A SUCCESSFUL MAINTENANCE PROJECT IT IS OWNED BY TWO FAMILY TRUSTS THAT BANKROLL TWO OF THE WORLD'S RICHEST WOMEN BARBARA COX ANTHONY WHO IS 70 AND ANNE COX CHAMBERS 73 THEY ARE THE DAUGHTERS OF THE LATE JAMES M COX THE COMPANY FOUNDER GOVERNOR OF OHIO AND DEMOCRATIC PRESIDENTIAL NOMINEE WHO LOST TO WARREN G HARDING IN 1920 EVENTUALLY OWNERSHIP OF THE COMPANY WILL PASS TO MR KENNEDY WHO IS MRS ANTHONY'S SON FROM AN EARLIER MARRIAGE AND TO HIS SISTER AND THREE COUSINS BUT COX ENTERPRISES HAS REACHED A CROSSROADS AS COMPETITORS SUCH AS TIME WARNER AND TCI FORGE ALLIANCES WITH PHONE AND ENTERTAINMENT COMPANIES COX AS MR KENNEDY NOTES CAN'T AFFORD TO STAND STILL THE QUESTION IS WILL THE COMPANY AND THE COX FAMILY REALLY COMMIT TO MAJOR EXPANSION OR AGAIN RETREAT TO A SAFE HARBOR MOST INDUSTRY EXECUTIVES BELIEVE THAT THE COMPANY HAS INDEED MADE A BREAK WITH THE PAST COX HAS TAKEN ON A MUCH MORE AGGRESSIVE POSTURE SAYS BRIAN DEEVY PRESIDENT OF DANIELS & ASSOCIATES A DENVER INVESTMENTBANKING FIRM SPECIALIZING IN TELECOMMUNICATIONS ALTHOUGH AFFABLE AND SELFDEPRECATING THE 45YEAROLD MR KENNEDY SEEMS NATURALLY AGGRESSIVE IN JULY 1992 HE CAPTAINED A FOURMAN RELAY TEAM THAT IN BLISTERING HEAT WON A BICYCLE RACE FROM IRVINE CALIF TO SAVANNAH GA IN RECORD TIME OF SIX DAYS AND 37 MINUTES HE'S ALWAYS OUT TO PROVE HIMSELF OVER AND OVER AND OVER AGAIN SAYS DAVID E EASTERLY PRESIDENT OF COX NEWSPAPERS MR KENNEDY DOESN'T LIKE TO LOSE SO MUCH AS A PINGPONG GAME COLLEAGUES SAY WHEN A NEWSPAPER IN SUBURBAN ATLANTA CHALLENGED COX'S JOURNAL AND CONSTITUTION HE DISPATCHED EXECUTIVES TO STREET CORNERS TO HAWK COPIES OF COX'S PAPERS FOR A BARGAIN PRICE OF 10 CENTS MR KENNEDY SAYS HE HAS LEARNED THAT YOU NEED TO BE CONSTANTLY GROWING AND LOOKING AT NEW THINGS BUT THE TUG OF HIS HERITAGE WE'RE NOT GOING TO RISK THE WHOLE COMPANY THAT'S OUR FAMILY HE SAYS ILLUSTRATES THE DIFFICULTIES OF A LARGE PRIVATELY OWNED COMPANY IN A FASTCHANGING INDUSTRY THE COMPANY HASN'T ALWAYS SHUNNED RISK BEFORE ENTERING POLITICS JAMES M COX HAD WORKED AS A NEWSPAPER REPORTER IN CINCINNATI AND THEN BOUGHT THE DAYTON EVENING NEWS LATER HE BOUGHT OTHER PAPERS INCLUDING THE ATLANTA JOURNAL AND ATLANTA CONSTITUTION WHICH EVENTUALLY MERGED IN 1948 HE BUILT THE SOUTH'S FIRST TV STATION ATLANTA'S WSB THE CALL LETTERS STOOD FOR WELCOME SOUTH BROTHER BECAUSE HE WAS FASCINATED WITH THE NEW TECHNOLOGY IN 1964 THE FAMILY MOVED THE COMPANY'S HEADQUARTERS TO ATLANTA WHICH HAD BECOME THE SITE OF ITS MAJOR HOLDINGS THROUGH MOST OF THE SUBSEQUENT THREE DECADES HOWEVER THE COMPANY WAS CAUTIOUSLY RUN ON A DAYBYDAY BASIS BY MOSTLY NONFAMILY EXECUTIVES THE COX SISTERS MAINTAINED SOME GUIDELINES INHERITED FROM THEIR FATHER AVOID DEBT AND NEVER PART WITH THE NEWSPAPERS AND THEY CARED ABOUT THE BOTTOM LINE A FORMER OFFICIAL NOTES THE RATHER MODEST EXECUTIVE SALARIES HE ADDS THAT THE SISTERS GAVE HIM RELATIVELY FREE REIN AS LONG AS THE COMPANY PROVIDED THEM A HEALTHY INCOME SHAREHOLDER RETURN HAS BEEN THE ONE CONSISTENT DIRECTIVE FROM DAY ONE HE SAYS MRS CHAMBERS HAS BEEN ESPECIALLY WATCHFUL IN ATLANTA SHE IS SOMETHING OF A GRANDE DAME HAVING SERVED AS THE FIRST FEMALE DIRECTOR OF COCACOLA CO AND THEN AS AMBASSADOR TO BELGIUM WHEN NOT AT HER VILLA IN SOUTHERN FRANCE TO WHICH SHE COMMUTES BY CONCORDE SHE LIVES IN A WHITECOLUMNED MANOR ACROSS FROM THE GEORGIA GOVERNOR'S MANSION SHE IS A CONFIDANTE OF FORMER PRESIDENT CARTER AND MAJOR DONOR TO DEMOCRATS SINCE MID1992 SHE HAS GIVEN ABOUT 100000 TO THE DEMOCRATIC NATIONAL COMMITTEE MONITORED BY THE SISTERS THE COMPANY HAS FLOURISHED TODAY ITS HOLDINGS INCLUDE 17 DAILY NEWSPAPERS 24 CABLETV SYSTEMS AND 19 RADIO AND TV STATIONS ALONG THE WAY IT HAS SOMETIMES SHIFTED STRATEGY AT THE END OF 1968 FOR INSTANCE COX BOUGHT ITS FIRST AUTOAUCTION COMPANY WHICH DIDN'T HAVE ANYTHING TO DO WITH MEDIA BUT HAD A LOT TO DO WITH PROFITS FOUR YEARS EARLIER A 60 STAKE IN THE BROADCAST OPERATIONS WAS TAKEN PUBLIC ENABLING THE FAMILY TO RETAIN EFFECTIVE CONTROL BUT SIDESTEP GROWING REGULATORY CONCERNS ABOUT JOINT OWNERSHIP OF TV STATIONS AND NEWSPAPERS IN THE EARLY 1980S THE FAMILY NEARLY CASHED OUT COMING WITHIN A FEW PEN STROKES OF SELLING ALL BUT THE NEWSPAPERS TO GENERAL ELECTRIC CO THE DEAL FELL THROUGH AT THE LAST MINUTE WHEN THE FAMILY DEMANDED A HIGHER PRICE ACCORDING TO SOME EXECUTIVES INVOLVED IN 1985 THE COX FAMILY REVERSED COURSE AND TOOK THE BROADCAST AUTO AND CABLE OPERATIONS PRIVATE ALTHOUGH THE FAMILY SAID THE MOVE WAS SPARKED BY TAKEOVER FEARS INVESTORS AND ANALYSTS BELIEVED THAT IT HAD MORE TO DO WITH THE COMPANY'S WINDING UP A PERIOD OF HEAVY CAPITAL SPENDING AND HEADING INTO A PERIOD OF INCREASED CASH FLOW IN 1987 MR KENNEDY WAS FINALLY DEEMED READY TO TAKE OVER AS PRESIDENT HE HAD ONCE WANTED AN OUTDOORS CAREER OR A JOB AS A VETERINARIAN BUT DECIDED IN HIS EARLY 20S TO GIVE THE FAMILY BUSINESS A SHOT AFTER GRADUATING FROM THE UNIVERSITY OF DENVER HE JOINED THE ATLANTA NEWSPAPERS IN 1972 AS A PRODUCTION ASSISTANT IN FOUR YEARS HE WHIZZED THROUGH JOBS AS A REPORTER ADVERTISING SALESMAN AND BUSINESS MANAGER AND EVENTUALLY BECAME EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF THE ATLANTA JOURNALCONSTITUTION THANK GOD FOR NEPOTISM HE JOKES SINCE BECOMING CHAIRMAN AND CHIEF EXECUTIVE IN 1988 MR KENNEDY HAS BEEN PRUDENT HE ONCE LOOKED AT BUYING BLOCKBUSTER ENTERTAINMENT BUT BACKED OFF WHEN THE PRICE WENT TOO HIGH KNOWLEDGEABLE EXECUTIVES SAY HIS BIGGEST DEAL SO FAR HAS BEEN TO JOIN FORCES WITH A GE UNIT AND FORD MOTOR CREDIT CO TO FORM THE WORLD'S LARGEST AUTOAUCTION COMPANY A DEPENDABLE COUNTERBALANCE FOR THE ECONOMICALLY SENSITIVE NEWSPAPER AND BROADCAST DIVISIONS THE AUCTION UNIT CONTRIBUTED 117 MILLION IN OPERATING PROFIT LAST YEAR ACCORDING TO A JUNE PRIVATEPLACEMENT MEMORANDUM ANOTHER KENNEDY COUP HAS BEEN TO TURN COX'S RECESSIONBATTERED NEWSPAPER GROUP BACK INTO A GRAVY TRAIN THE ATLANTA PAPERS HAVE SWITCHED TO A USA TODAYTYPE FORMAT AND FOR A WHILE DISCOUNTED SUBSCRIPTION RATES TO PULL IN NEW READERS OTHER COX PAPERS ARE ALSO USING MORE COLOR INTRODUCING INTERACTIVE TELEPHONE SERVICES AND MAKING THE NEWS SECTIONS MORE USERFRIENDLY SAYS MR EASTERLY PRESIDENT OF COX'S NEWSPAPERS THE GROUP'S FIRSTQUARTER OPERATING INCOME JUMPED 51 THIS YEAR IN THE BROADCAST DIVISION BY CONTRAST MR KENNEDY WASN'T AVERSE TO UNLOADING STATIONS AFTER COMPETITION AND THE RECENT RECESSION SLOWED EARNINGS GROWTH IN MARCH COX AGREED TO SELL ITS DETROIT STATION A FOX AFFILIATE TO PARAMOUNT COMMUNICATIONS INC FOR 105 MILLION UNDER MR KENNEDY COX HAS BUILT UP AN ENVIABLE BALANCE SHEET LONGTERM DEBT HAS BEEN PARED TO ABOUT 13 BILLION ON ASSETS OF ABOUT 45 BILLION THE COMPANY EARNED 209 MILLION LAST YEAR UP 37 FROM 1991 ON REVENUE OF 25 BILLION BUT THE BIGGEST CHALLENGE REMAINS WHAT TO DO WITH COX'S CABLE OPERATIONS FOR THE COX FAMILY THEY REPRESENT BOTH HIGH REWARD AND HIGH RISK ON THE ONE HAND THE CABLE GROUP IS WELLPOSITIONED MOST OF ITS SYSTEMS ITS LARGEST ARE IN SAN DIEGO IN HAMPTON ROADS VA AND IN JEFFERSON PARISH LA HAVE FIBER OPTICS AS A RESULT COX CABLE MAY BE ABLE TO OFFER SUBSCRIBERS MORE CHANNELS AND MORE INTERACTIVE SERVICES SOONER THAN ITS LARGER RIVALS FIBER OPTICS COULD ALSO ENABLE COX TO BECOME A FORCE IN THE TELEPHONE BUSINESS COX TRAILS ITS BIG RIVALS IN DEVELOPING AND OWNING PROGRAMMING HOWEVER MR KENNEDY RECENTLY RAISED THE COMPANY'S STAKE IN ENTERTAINMENT TONIGHT TO 50 AND HAS BOUGHT A PIECE OF THE SAN FRANCISCO GIANTS FOR COX'S BAY AREA TELEVISION STATION ON THE OTHER HAND DOUBLING COX'S CURRENT BASE OF 17 MILLION SUBSCRIBERS AS MR KENNEDY DESIRES WOULD INVOLVE THE KINDS OF DEALS THAT HIS FAMILY HAS LONG AVOIDED BUYING SMALL CABLE OPERATORS PIECEMEAL COULD COST AS MUCH AS 2000 A SUBSCRIBER AND UP TO 25 BILLION ACCORDING TO INDUSTRY ESTIMATES OR COX COULD ALIGN ITSELF WITH ANOTHER MAJOR CABLE COMPANY SOME KIND OF PARTNERSHIP WITH CONTINENTAL CABLEVISION INC THE THIRDLARGEST CABLE COMPANY OR COMCAST CORP WHICH RANKS FOURTH WOULD MAKE A LOT OF SENSE SAYS JAMES O ROBBINS COX CABLE'S PRESIDENT A CONTINENTAL EXECUTIVE SAYS THERE ARE NO CURRENT MERGER TALKS WITH COX A COMCAST EXECUTIVE SAYS HE IS UNAWARE OF ANY ACTIVE DISCUSSIONS BUT SUCH A MOVE COULD FORCE COX TO GIVE UP A BIG SLICE OF EQUITY EITHER DECISION WOULD PUT THE COX FAMILY IN THE TELECOMMUNICATIONS BIG LEAGUES ALONG WITH PLAYERS SUCH AS MOTOROLA INC WHICH EXPECTS TO SHELL OUT BILLIONS TO BUILD A SATELLITE PHONE AND DATA SYSTEM AND TIME WARNER WHICH IS GIVING UP A STAKE IN ITS ENTERTAINMENT UNIT IN EXCHANGE FOR A 25 BILLION INVESTMENT FROM U S WEST INC MR KENNEDY SAYS HE IS READY TO PLAY WE COULD TAKE A DIVISION PUBLIC HE SAYS ADDING THAT HIS FAMILY WOULD BACK SUCH A MOVE MY MOTHER AND MY AUNT WANT TO RUN A COMPANY THAT GROWS AND CONTINUES TO BE PART OF AMERICAN BUSINESS TIMOTHY P NEHER VICE CHAIRMAN AT CONTINENTAL CABLEVISION CITES COX'S RECENT INVESTMENT IN TELEPORT COMMUNICATIONS INC AS EVIDENCE OF THE FAMILY'S READINESS TO CHANGE COX WAS THE FIRST CABLE COMPANY TO BUY A PIECE OF TELEPORT THE NATION'S LARGEST COMPETITIVEACCESS PHONE COMPANY THEN MR KENNEDY HELPED ENTICE TCI COMCAST AND CONTINENTAL TO INVEST IN TELEPORT AS WELL MR KENNEDY HAS ADDED SOME DIRECTION TO COX MR NEHER SAYS NOTING A WILLINGNESS TO BE AGGRESSIVE RATHER THAN JUST BE A FOLLOWER WHILE MR KENNEDY EMPHASIZES THAT HE WANTS TO KEEP COX FAMILY OWNED AS LONG AS WE CAN HE AND HIS TOP LIEUTENANTS SAY THEY RECOGNIZE THAT A NEW PLAYING FIELD MERITS NEW RULES WE'RE HUNTIN' WE'RE HUNTIN' HARD COX CABLE'S MR ROBBINS SAYS WE SHARE A SENSE OF URGENCY THAT THIS INDUSTRY IS ABOUT TO BE TRANSFORMED SEE RELATED LETTER LETTERS TO THE EDITOR A MEDIA KINGDOM BECAME AN EMPIRE WSJ OCT 27 1993 9309150171 YY93 MM10 9310270125 930922 RULE OF LAW WITHOUT MALPRACTICE REFORM FORGET HEALTHCARE REFORM BY DAVID MCINTOSH ONE OF THE BASIC TRICKS OF A CON ARTIST IS TO DISTRACT YOU BY GIVING YOU SOMETHING THAT APPEARS TO BE VALUABLE WHICH IT NEVER IS WHILE TAKING FROM YOU SOMETHING WORTH A GREAT DEAL MORE CONGRESS WILL SOON BEGIN DEBATING WHETHER PRESIDENT CLINTON'S HEALTHCARE PLAN IS WORTH THE COSTS BUT THERE CAN BE NO DOUBT THAT THE PRESIDENT'S PLAN WILL STEAL FROM US SOMETHING VERY VALUABLE INDEED A CHANCE TO REFORM OUR NATION'S COSTLY MEDICAL MALPRACTICE SYSTEM THE BIGGEST OMISSION IS THE PRESIDENT'S APPARENT DECISION NOT TO PLACE A CAP ON MALPRACTICE AWARDS INSTEAD HE IS EXPECTED TO PROPOSE A WATEREDDOWN PACKAGE OF REFORMS THAT ANY SELFRESPECTING CON ARTIST WOULD RECOGNIZE AS A POORLY EXECUTED SHELL GAME THE CURRENT SYSTEM ENCOURAGES LAWYERS TO TAKE ROUTINE CASES AND TRY TO CONVINCE JURIES THAT THE DOCTOR'S INSURANCE COMPANY SHOULD NOT ONLY PAY FOR THE ACTUAL HARM DONE TO THE PATIENT BUT ALSO PAY MILLIONS OF DOLLARS MORE FOR PAIN AND SUFFERING THE LAWYER THEN TAKES AS HIS FEE UP TO 33 OF THE MONEY BECAUSE THE LAWYER GETS A HIGH PERCENTAGE OF THE AWARD HE HAS A BIG INCENTIVE TO PERSUADE THE JURY TO GIVE AS MUCH AS POSSIBLE AND BECAUSE THE JURY DOESN'T PAY THE AWARD ITSELF THERE IS NO REASON THAT THEY SHOULDN'T BE MOVED BY THE PLEAS OF THE PLAINTIFF'S ATTORNEY AS HAS BEEN WELL DOCUMENTED ON THESE PAGES AWARDS HAVE SKYROCKETED OVER THE YEARS DRIVING UP THE COST OF MALPRACTICE INSURANCE AND THE PUBLIC SUFFERS BECAUSE THE PROCESS CAUSES INCREASES IN HEALTH INSURANCE PREMIUMS FOR THE REST OF US THE SITUATION HAS BECOME SO BAD THAT DOCTORS IN HIGHRISK PRACTICES ARE LEAVING STATES THAT HAVE THE HIGHEST MALPRACTICE INSURANCE COSTS FOR EXAMPLE IN FLORIDA THE STATE WITH THE HIGHEST MALPRACTICE INSURANCE RATES EXPECTANT MOTHERS SOMETIMES HAVE TO TRAVEL OUT OF STATE TO GIVE BIRTH BECAUSE THE HIGH INSURANCE COSTS HAVE CAUSED A SEVERE SHORTAGE OF OBSTETRICIANS DURING THE PAST TWO DECADES SEVERAL STATES HAVE CAPPED MALPRACTICE AWARDS IN 1976 INDIANA INSTITUTED REFORMS THAT SHOULD BE A MODEL FOR PRESIDENT CLINTON UNDER THE LEADERSHIP OF GOV OTIS BOWEN MALPRACTICE AWARDS WERE CAPPED AT 500000 WHICH HAS SINCE BEEN RAISED TO 750000 PRIVATE MALPRACTICE INSURERS PAY FOR ANY DAMAGES UP TO 100000 IF THE DOCTOR IS FOUND TO BE LIABLE FOR MORE THE REST IS PAID FOR BY A SPECIAL STATERUN FUND FUNDED BY DOCTORS INDIANA ALSO LIMITS THE AMOUNT LAWYERS CAN TAKE AS THEIR CUT 15 OF ANY AMOUNT OVER 100000 RATHER THAN PLACE A CAP ON DAMAGES AN APPROACH WE KNOW WILL WORK THE PRESIDENT HAS FLOATED A WATEREDDOWN VERSION OF REFORM WHICH STUDIES SHOW WILL DO LITTLE OR NOTHING TO HELP CONTROL COSTS THE PLAN NOW FLOATING IN MR CLINTON'S LATEST REVISED AMENDED AND RECONSTITUTED TRIAL BALLOON WOULD DO TWO THINGS NEITHER PARTICULARLY EFFECTIVE FIRST IT WOULD INSTITUTE WHAT LAWYERS CALL THE COLLATERAL SOURCE RULE THIS REQUIRES THEM TO SEEK PAYMENT FIRST FROM THEIR CLIENT'S OWN INSURANCE POLICY AND THEN IF THAT POLICY DOES NOT COVER THE DAMAGES DIP INTO THE DOCTOR'S MALPRACTICE POLICY THIS SEEMS EMINENTLY FAIR BUT STUDIES HAVE SHOWN THAT IT HAS LITTLE EFFECT IN BRINGING DOWN THE COST OF MALPRACTICE INSURANCE SECOND THE PRESIDENT HINTED HE MIGHT WANT TO CAP ATTORNEYS' FEES TOO BUT NOT AT INDIANA'S GENEROUS 15 OR EVEN AT 25 SHOWING MUCH MORE GENEROSITY TO ATTORNEYS THAN HE HAS SHOWN TO TAXPAYERS THE PRESIDENT WILL CAP ATTORNEY'S FEES AT 33 AND DON'T BE CONFUSED BY THE HOWLS OF PAIN FROM THE TRIAL ATTORNEY'S LOBBY IF THERE HAS TO BE A CAP THEY COULD NOT BE HAPPIER THAN WITH MR CLINTON'S PROPOSAL IT IS EXACTLY WHAT MOST LAWYERS CHARGE ANYWAY BY BACKING AWAY FROM REAL CAPS MR CLINTON IS IGNORING ONE OF THE MOST IMPORTANT MEANS OF CONTROLLING COSTS WITHOUT REDUCING THE QUALITY OF OUR HEALTH CARE STUDIES SHOW THAT OF ALL THE REFORMS ENACTED IN THE 1970S AND 1980S DAMAGE CAPS WERE THE ONLY EFFECTIVE MEANS OF REDUCING BOTH THE NUMBER AND SIZE OF MALPRACTICE CLAIMS THE HUDSON INSTITUTE COMPETITIVENESS CENTER'S PRELIMINARY REVIEW OF 1993 DATA CONFIRMS THAT THIS TREND IS REFLECTED IN THE TYPICAL PREMIUM PAID FOR MALPRACTICE INSURANCE STATES THAT CAP ALL DAMAGES HAVE DRAMATICALLY LOWER PREMIUMS FOR MEDICAL MALPRACTICE INTERESTINGLY STATES SUCH AS CALIFORNIA WHERE ONLY THE PAIN AND SUFFERING PORTION OF THE DAMAGES IS CAPPED DO NOT SEEM TO HAVE SIGNIFICANTLY LOWER AVERAGES ALTHOUGH THE RATES OF INCREASE IN THOSE STATES HAVE SLOWED THE INDIANA REFORMS HAVE WORKED WONDERS INDIANA HAS THE LOWEST PREMIUM OF ALL TYPICALLY 4350 A YEAR COMPARE THIS TO FLORIDA WHERE DOCTORS TYPICALLY PAY 73000 AND THE NATIONAL AVERAGE WHICH IS 16500 MORE IMPORTANT PATIENTS WHO SUFFER SEVERE LOSSES ACTUALLY RECEIVE MORE MONEY IN INDIANA THAN THEY DO IN SURROUNDING STATES A STUDY BY SEVERAL INDIANA UNIVERSITY LAW SCHOOL PROFESSORS ELEANOR KEANEY ET AL COMPARED THE AVERAGE AMOUNT PAID TO PATIENTS IN INDIANA TO THE AMOUNT PAID IN MICHIGAN AND OHIO UNTIL RECENTLY THESE STATES HAD NEITHER CAPPED DAMAGES NOR LIMITED ATTORNEYS' FEES YET THEIR LEGAL SYSTEMS PAID OUT FEWER DOLLARS TO SEVERELY INJURED PATIENTS THIS IS BECAUSE IN THOSE STATES THE ATTORNEYS SNAP OFF A BIGGER BITE OF THE AWARD FOR THEMSELVES BY CONTRAST IN INDIANA INSURERS OFTEN WILL SETTLE CASES OUT OF COURT QUICKLY MINIMIZING LEGAL COSTS AND ENSURING THAT MORE OF THE REWARD GOES TO THE VICTIM IT'S NO SURPRISE THAT MR CLINTON HAS FAILED TO EMBRACE TRUE MALPRACTICE REFORM DURING THE PRESIDENTIAL CAMPAIGN TRIAL LAWYERS RAISED MILLIONS OF DOLLARS FOR HIM PROMISING THEIR FELLOW ATTORNEYS THAT THEY WOULD HAVE A DIRECT LINE TO THE PRESIDENT AND WOULD MAKE SURE THAT ANY SERIOUS LEGAL REFORM WOULD BE KILLED OFF BY THE BOSS HIMSELF THIS IS ONE PROMISE THE PRESIDENT IS KEEPING THE TAXPAYERS DESERVE BETTER THAN THIS CONGRESS SHOULD REJECT THE PRESIDENT'S PLAN AND ENACT REFORMS THAT CUT COSTS AND PAY MORE TO INJURED PATIENTS INSURANCE PREMIUMS WOULD GO DOWN PATIENTS WOULD PAY LESS FOR BETTER HEALTH CARE AND PEOPLE WHO WERE INJURED THROUGH NO FAULT OF THEIR OWN WOULD RECEIVE HIGHER AWARDS IN A FAIRER AND MORE EFFICIENT LEGAL SYSTEM IF CONGRESS DID THAT EVERYONE WOULD BE BETTER OFF EXCEPT MAYBE THE TRIAL LAWYERS MR MCINTOSH IS A FELLOW FOR DOMESTIC AFFAIRS AT THE COMPETITIVENESS CENTER OF THE HUDSON INSTITUTE IN INDIANAPOLIS HE WAS EXECUTIVE DIRECTOR OF VICE PRESIDENT QUAYLE'S COUNCIL ON COMPETITIVENESS SEE RELATED LETTER LETTERS TO THE EDITOR MALPRACTICE DAMAGE CAPS WON'T HELP WSJ OCT 13 1993 9309220137 YY93 MM10 SEE RELATED LETTER LETTERS TO THE EDITOR MALPRACTICE FEARS WSJ OCT 27 1993 9310130189 YY93 MM10 9310260181 931025 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN MMIDWEST 9310260179 931026 WHO'S NEWS NASH FINCH CO NASH FINCH CO MINNEAPOLIS CAROLE F BITTER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FRIEDMAN'S SUPERMARKETS WAS ELECTED A DIRECTOR OF THIS FOOD WHOLESALER RAISING BOARD MEMBERSHIP TO 12 9310260178 931026 MARKETING & MEDIA ADVANCED MICRO PLANS AD CAMPAIGN TO STRESS CHIPS' COMPATIBILITY SUNNYVALE CALIF ADVANCED MICRO DEVICES INC SEEKING TO BLUNT THE EFFECTS OF A BIG MARKETING CAMPAIGN BY ARCHRIVAL INTEL CORP IS LAUNCHING A CAMPAIGN OF ITS OWN TO CONVINCE PERSONALCOMPUTER BUYERS THAT ITS CHIPS RUN THE SOFTWARE THEY WANT TO USE ADVANCED MICRO OR AMD SAID IT REACHED A LICENSING AGREEMENT WITH MICROSOFT CORP THAT ALLOWS AMD TO PRINT MICROSOFT'S WINDOWSCOMPATIBLE LOGO ON CERTAIN AMD CLONES OF INTEL'S MICROPROCESSORS THE CHIP MAKER WILL ALSO USE THE LOGO IN ADVERTISING AND MARKETING AMD WHICH MAKES A LARGE PORTION OF ITS PROFITS ON CHIPS THAT MIMIC THE WORKINGS OF INTEL'S 386 AND 486 MICROPROCESSORS HAS BEEN CONSTANTLY FORCED TO CONVINCE PERSONALCOMPUTER MAKERS AND BUYERS THAT ITS CHIPS REALLY DO ACT AS INTEL'S DO AMD WILL FACE MORE QUESTIONS ABOUT COMPATIBILITY NEXT YEAR WHEN IT EXPECTS TO BEGIN SHIPPING A NEW CHIP CODENAMED K5 THAT IT CLAIMS ISN'T BASED ON THE INTEL ARCHITECTURE YET RUNS SOFTWARE WRITTEN FOR INTEL CHIPS AMD ARGUES THAT TODAY'S PC USERS REALLY JUST WANT THEIR MACHINES TO RUN THE THOUSANDS OF PROGRAMS THAT WORK WITH THE WINDOWS OPERATING SYSTEM AND DON'T CARE ABOUT CHIP BRANDS IF YOU'RE WINDOWSCOMPATIBLE YOU HAVE THE REASSURANCE THAT THE SOFTWARE YOU BUY WILL RUN ON THE CHIP SAID SUBODH TOPRANI AMD'S DIRECTOR OF MARKETING FOR PC PRODUCTS THE LOGO CAMPAIGN ANSWERS ANY QUESTIONS ABOUT COMPATIBILITY AMD'S MOVE ANSWERS A CAMPAIGN BEGUN LAST YEAR BY INTEL SANTA CLARA CALIF IN WHICH INTEL HELPS FUND ADVERTISING AND MARKETING BY COMPUTERMAKING CUSTOMERS THAT USE AN INTEL INSIDE LOGO IN THEIR MATERIAL INTEL'S AIM IS TO CONVINCE PERSONALCOMPUTER BUYERS TO SPECIFY MACHINES THAT USE INTEL'S MICROPROCESSORS AS THEIR BRAINS AMD TAKING A SIMILAR TACK WILL SHORTLY BEGIN COFUNDING MARKETING AND ADVERTISING EFFORTS BY CUSTOMERS THAT AGREE TO MENTION IN THEIR CAMPAIGNS THAT THEIR PCS USE AMD CHIPS AND THAT INCLUDE SOME FORM OF THE WINDOWS COMPATIBLE LOGO THE OBJECTIVE SAID MR TOPRANI IS TO SHOW BUYERS THAT IT DOESN'T HAVE TO BE AN INTEL INSIDE 9310260177 931026 FINANCING BUSINESS SOMATOGEN INC SOMATOGEN INC SAID IT FILED AN AMENDED REGISTRATION STATEMENT FOR A PUBLIC OFFERING OF THREE MILLION COMMON SHARES THE BOULDER COLO BIOTECHNOLOGY COMPANY INITIALLY FILED TO OFFER SHARES OF CONVERTIBLE EXCHANGEABLE PREFERRED SOMATOGEN SAID NET PROCEEDS OF THE OFFERING WILL BE USED FOR RESEARCH AND DEVELOPMENT ACTIVITIES MANUFACTURINGPROCESS IMPROVEMENTS AND OTHER CORPORATE PURPOSES SOMATOGEN ALSO REPORTED A FIRSTQUARTER LOSS OF 57 MILLION OR 55 CENTS A SHARE COMPARED WITH A LOSS OF 52 MILLION OR 56 CENTS A SHARE A YEAR AGO REVENUE FELL SHARPLY TO 4000 FROM 70000 9310260176 931018 CLOSED END FUNDS FRIDAY OCTOBER 15 1993 BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN CCHICAGO 9310260175 931026 STEEL PRODUCTION ROSE 1 IN THE LATEST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 1 LAST WEEK TO 1901000 TONS FROM 1883000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT CLIMBED 104 FROM THE 1722000 TONS PRODUCED A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9310260174 931026 WHO'S NEWS AMERICAN STOCK EXCHANGE AMERICAN STOCK EXCHANGE NEW YORK MARK KLEIN 33 YEARS OLD WAS APPOINTED EXECUTIVE DIRECTOR OF THE EMERGING COMPANY MARKETPLACE WHICH PROVIDES SUCH COMPANIES WITH TRADING IN THE EXCHANGE'S AUCTION MARKET SYSTEM HE WAS PREVIOUSLY DIRECTOR OF THE EXCHANGE'S CORPORATE FINANCE AND ANALYSIS DEPARTMENT 9310260173 931026 WHO'S NEWS NISSAN MOTOR CO NISSAN MOTOR CO NISSAN MOTOR CORP CARSON CALIF SAID IT NAMED STEPHEN WELSH VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR WELSH 55 YEARS OLD WILL OVERSEE THE AUTO MAKER'S FINANCIAL PLANNING AUDIT AND CONTROLLER FUNCTIONS NISSAN HIRED MR WELSH FROM FORD MOTOR CO WHERE HE WAS CONTROLLER OF THE CLIMATE CONTROL DIVISION IN PLYMOUTH MICH MR WELSH SUCCEEDS SHA SENDABA WHO WAS NAMED VICE PRESIDENT OF LOGISTICS NISSAN MOTOR CORP IS THE US SALES ARM OF JAPAN'S NISSAN MOTOR CO 9310260172 931026 ABREAST OF THE MARKET INDUSTRIALS CATAPULT 2431 POINTS TO A RECORD ON BUOYANT CAR SALES BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE POWERED TO A HIGH AS BUOYANT CAR SALES SENT INVESTORS SCRAMBLING TO BUY ECONOMICALLY SENSITIVE STOCKS OTHER MARKET BAROMETERS TURNED IN A MIXED PERFORMANCE THE INDUSTRIAL AVERAGE JUMPED 2431 POINTS TO 367361 SMASHING ITS OLD RECORD OF 365209 SET AUG 25 STANDARD & POOR'S 500STOCK INDEX ADDED 093 TO 46420 AND THE NASDAQ COMPOSITE INDEX SLID 293 TO 76975 VOLUME ON THE BIG BOARD FELL TO 257170000 SHARES FROM 301310000 SHARES FRIDAY DECLINING ISSUES OUTNUMBERED ADVANCERS 1085 TO 929 ANALYSTS SAID REPORTS OF SURGING AUTO SALES IN MIDOCTOBER HURT THE BOND MARKET DRIVING THE YIELD ON THE TREASURY'S 30YEAR BOND TO 6 FROM 597 FRIDAY BUT THE FAVORABLE ECONOMIC REPORT WAS WELCOME NEWS TO STOCK INVESTORS WHO SEIZED THE OPPORTUNITY TO BID UP MANY OF THE CYCLICAL STOCKS IN THE INDUSTRIAL AVERAGE STRONG AUTO SALES MEAN HIGH AUTO PRODUCTION AND THAT BECOMES AN ENGINE FOR THE WHOLE INDUSTRIAL SIDE OF THE ECONOMY IN THE FOURTH QUARTER SAID JOSEPH MCALINDEN CHIEF MARKET STRATEGIST AT DILLON READ AUTO STOCKS TURNED IN A MIXED SHOWING LARGELY THE RESULT OF NEWS THAT GENERAL MOTORS AND THE UNITED AUTO WORKERS HAD REACHED A TENTATIVE AGREEMENT ON A NEW CONTRACT BUT OTHER CYCLICAL STOCKS BARRELED HIGHER ALUMINUM CO OF AMERICA SOARED 1 3/4 TO 70 3/4 CHEVRON 1 1/4 TO 96 1/4 ALLIEDSIGNAL 1 1/4 TO 72 7/8 AND UNITED TECHNOLOGIES 2 1/2 TO 64 1/4 A MORGAN STANLEY INDEX OF CYCLICAL STOCKS CLIMBED 134 TO 28541 OVERSHADOWING THE 051 POINT GAIN POSTED BY THE FIRM'S CONSUMER STOCK INDEX THOUGH STOCK INVESTORS WERE UNPERTURBED BY THE SELLOFF IN THE BOND MARKET SOME STOCK ANALYSTS SAID THAT IF THE DECLINES CONTINUE IT COULD BE WORRISOME FOR STOCKS THE REAL CONCERN IS WHETHER THE STRONGER ECONOMY IS GOING TO LEAD TO HIGHER INTEREST RATES SAID DAVID SHULMAN STOCK STRATEGIST AT SALOMON BROTHERS MR SHULMAN SAID THAT DESPITE YESTERDAY'S RECORD IN THE INDUSTRIAL AVERAGE STOCK INVESTORS ARE SENDING MIXED SIGNALS FOR INSTANCE HE NOTED THAT THERE HAVE BEEN MORE STOCKS DECLINING THAN ADVANCING FOR THE PAST SIX DAYS WHAT'S MORE THE DOW JONES UTILITY AVERAGE CONTINUES TO ERODE DROPPING 191 POINTS TO 23860 PARAMOUNT GAINED 1 3/8 TO 79 IN HEAVY TRADING VIACOM SUNDAY SWEETENED ITS BID FOR PARAMOUNT MATCHING A TWOSTEP 94 BILLION TENDER OFFER BY RIVAL BIDDER QVC NETWORK WHILE HOLDING OUT THE POSSIBILITY THAT IT COULD COMPLETE ITS ACQUISITION SOONER VIACOM LOST 3/8 TO 59 IN TRADING ON THE AMERICAN STOCK EXCHANGE AND QVC SLUMPED 1 1/8 TO 53 7/8 ON NASDAQ GENERAL MOTORS SKIDDED 1 1/4 TO 44 3/4 DESPITE REPORTING A STRONG INCREASE IN MIDOCTOBER CAR SALES ANALYSTS ATTRIBUTED THE DROP TO NEWS THAT THE AUTO MAKER AND THE UNITED AUTO WORKERS HAVE AGREED TO A TENTATIVE THREEYEAR PACT THAT GIVES THE COMPANY MORE WAYS TO AVOID PAYING LAIDOFF WORKERS BUT OFFERS LITTLE RELIEF FROM HIGH PENSION AND MEDICAL COSTS SUCH A PACT WOULD MAKE A TURNAROUND AT GENERAL MOTORS HARDER STOCKS OF OTHER CAR MAKERS EKED OUT SLIM GAINS ON THE NEWS OF ROBUST CAR SALES GAINS IN MIDOCTOBER FORD MOTOR ADDED 1/8 TO 59 1/4 AND CHRYSLER 1/8 TO 54 RJR NABISCO WAS THE MOST ACTIVE ISSUE ON THE BIG BOARD RISING 1/4 TO 5 3/8 THE FOOD AND TOBACCO GIANT IS EXPECTED TO REPORT ITS THIRDQUARTER EARNINGS TODAY ALSO SET TO RELEASE ITS THIRDQUARTER PROFIT REPORT TODAY IS INTERNATIONAL BUSINESS MACHINES WHICH EDGED UP 3/8 TO 44 7/8 MOST ANALYSTS ARE EXPECTING BIG BLUE TO POST ITS FIFTH CONSECUTIVE QUARTERLY LOSS NEWORLD BANCORP SURGED 4 1/4 TO 33 ON NASDAQ CITIZENS FINANCIAL GROUP SAID IT HAS REACHED A DEFINITIVE AGREEMENT TO BUY NEWORLD BANCORP AND ITS SUBSIDIARY NEWORLD BANK FOR 1443 MILLION OR 3550 A SHARE BIOMET JUMPED 1 TO 10 1/8 ON NASDAQ BARRON'S REPORTED THAT EARNINGS IN THE CURRENT FISCAL YEAR THAT ENDS IN MAY SHOULD TOP 60 CENTS A SHARE UP FROM 56 CENTS A SHARE IN FISCAL 1993 AND IN FISCAL 1995 BARRON'S SAID THE COMPANY PROBABLY WILL EARN SOMETHING CLOSE TO 70 CENTS A SHARE GRUMMAN CLIMBED 1 7/8 TO 37 3/8 THE DEFENSE CONTRACTOR'S THIRDQUARTER PROFIT CLIMBED TO 85 CENTS A SHARE FROM 58 CENTS A SHARE A YEAR EARLIER ALSO IN A LASTMINUTE REVERSAL THE JUSTICE DEPARTMENT HAS DECIDED THAT IT WON'T SEEK CRIMINAL CHARGES AGAINST GRUMMAN FOR OVERCHARGING THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION BARNETT BANKS LOST 1 1/4 TO 41 3/4 FLORIDA'S TREASURER AND INSURANCE COMMISSIONER ORDERED ALL AGENTS AFFILIATED WITH BARNETT'S NEWLY ACQUIRED INSURANCE SHOP TO STOP SELLING OR SOLICITING MOST INSURANCE EXXON BOUNCED UP 1 TO 65 5/8 THE OIL COMPANY'S THIRDQUARTER PROFIT ROSE TO 109 A SHARE FROM 91 CENTS A SHARE A YEAR EARLIER 9310260171 931026 WHO'S NEWS CHOCK FULL O'NUTS CHOCK FULL O'NUTS NEW YORK THIS COFFEE RETAILER NAMED MARK A ALEXANDER A VICE PRESIDENT OF METROPOLITAN LIFE INSURANCE CO A DIRECTOR DR ALEXANDER 43 YEARS OLD IS RESPONSIBLE FOR PERSONAL LIFE INSURANCE AND MEDICAL UNDERWRITING AND HAS A DOCTOR OF MEDICINE DEGREE FROM NEW YORK MEDICAL COLLEGE HE FILLS ONE OF TWO VACANT SEATS CREATED BY THE DEPARTURES OF JOSEPH BRESLIN AND GEORGE RUDY EARLIER THIS YEAR MR BRESLIN FORMERLY CHAIRMAN AND CHIEF EXECUTIVE OFFICER STEPPED DOWN IN AUGUST TO PURSUE OTHER INTERESTS MR RUDY RETIRED IN JUNE 9310260170 931026 WHO'S NEWS LAYNE INC LAYNE INC MISSION WOODS KAN ANDREW B SCHMITT WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS ENVIRONMENTAL DRILLING COMPANY SUCCEEDING ROBERT C DYMOND WHO RESIGNED TO PURSUE OTHER BUSINESS INTERESTS MR SCHMITT 44 YEARS OLD FORMERLY SERVED AS PRESIDENT OF THE TRISTATE OIL TOOLS DIVISION OF BAKER HUGHES INC MR DYMOND 53 WILL REMAIN AT THE COMPANY AS A CONSULTANT DURING A TRANSITION PERIOD 9310260169 931026 WHO'S NEWS PHOENIX HOME LIFE MUTUAL INSURANCE CO PHOENIX HOME LIFE MUTUAL INSURANCE CO HARTFORD CONN ROBERT CHESEK 59 YEARS OLD PLANS TO RETIRE AS CHAIRMAN OF THE PHOENIX INVESTMENT COUNSEL UNIT OF THE MUTUAL INSURANCE CONCERN AT THE END OF MARCH IN ANTICIPATION OF MR CHESEK'S RETIREMENT PATRICIA BANNAN WAS ELECTED PRESIDENT OF THE UNIT IN 1992 9310260168 931026 MARKETING & MEDIA VISA AGREES TO ALTER ADS ON TELLURIDE SKI RESORT NEW YORK VISA USA INC HAS AGREED TO ALTER TELEVISION COMMERCIALS FEATURING THE SKIRESORT TOWN OF TELLURIDE COLO SETTLING A LAWSUIT BY A UNIT OF AMERICAN EXPRESS CO OUTLINING A PROPOSED SETTLEMENT IN FEDERAL COURT IN MANHATTAN AN ATTORNEY FOR VISA SAID REFERENCES TO TELLURIDE AND TELLURIDE SKI RESORT WOULD BE REPLACED BY A REFERENCE TO TELLURIDE SKI MOUNTAIN AMERICAN EXPRESS BELIEVES THAT NAME REFLECTS MORE SPECIFICALLY THE SKI BUSINESS ON TELLURIDE MOUNTAIN AS OPPOSED TO THE GENERAL GEOGRAPHICAL AREA SCENES OF THE TOWN ITSELF WOULD BE DELETED AND THE ADS IN THEIR ORIGINAL FORM WOULDN'T BE SHOWN AFTER THIS FRIDAY AMERICAN EXPRESS HAD CONTENDED THAT VISA'S ADS LEFT A FALSE IMPRESSION THAT THE AMERICAN EXPRESS CHARGE CARD ISN'T ACCEPTED ANYWHERE IN TELLURIDE AN ATTORNEY FOR AMERICAN EXPRESS TRAVEL RELATED SERVICES CO AGREED TO THE PROPOSED SETTLEMENT 9310260167 931026 BUSINESS & RACE BY LEON E WYNTER HISPANIC SUPPORTERS OF NAFTA IN THE US SAY THEIR COMMUNITY SHOULD BE UNITED BEHIND THE TRADE AGREEMENT BUT MANY HISPANICS AREN'T EMBRACING THE CAUSE ABOUT ONE IN FIVE US HISPANICS DOESN'T WANT A TRADE PACT ACCORDING TO POLLS CONDUCTED BY THE SOUTHWEST VOTER RESEARCH INSTITUTE MOST PEOPLE POLLED SAY THEY'LL BACK THE NORTH AMERICAN FREE TRADE AGREEMENT ONLY IF IT IS ACCOMPANIED BY SUBSTANTIAL COMMITMENTS TO DEVELOP THE MOSTLY HISPANIC COMMUNITIES NEAR THE MEXICAN BORDER SAYS AN INSTITUTE SPOKESMAN THE GROUP WHICH IS AFFILIATED WITH A VOTERREGISTRATION ORGANIZATION IS HOLDING BACK ITS SUPPORT FOR THE TIME BEING PUBLICRELATIONS FIRMS RETAINED BY THE MEXICAN GOVERNMENT ARE WORKING HARD TO WIN OVER HESITANT HISPANICS ONE STRATEGY IS TO TRY TO CONVINCE MOM AND POP HISPANIC BUSINESSES THAT NAFTA MEANS OPPORTUNITIES AND JOBS FOR HISPANICS MARK CAMPOS OF CAMPOS COMMUNICATIONS IN HOUSTON SAYS HE HAS PROMOTED NEWSPAPER AND TV STORIES SHOWING SMALL HISPANIC FIRMS DOING BUSINESS IN MEXICO ANOTHER COMPANY MOYA VILLANUEVA UNIVERSAL CITY CALIF IS USING FORMER NEW MEXICO GOV TONEY ANAYA TO STUMP FOR NAFTA TEXAS HISPANICS ARE THE MOST INFORMED ABOUT NAFTA BUT AWARENESS AND SUPPORT IS WEAKER IN THE EAST AND MIDWEST WHERE ORGANIZED LABOR IS STRONGER AND THERE ARE FEWER MEXICANAMERICANS MR ANAYA CONCEDES THAT NAFTA IS UNLIKELY TO OVERCOME ENTIRELY REGIONAL DIFFERENCES IN HISPANIC SUPPORT BUT IT'S A GOAL WELL WORTH SHOOTING FOR DOES PENNEY'S TELL MONTGOMERY WARD CLEARLY NOT WHEN IT COMES TO AFRICANINSPIRED PRODUCTS MONTGOMERY WARD IS LAUNCHING 30 INSTORE BOUTIQUES OFFERING CLOTHES AND FURNISHINGS WITH AFRICANSTYLE FLAIR MEANWHILE JC PENNEY HAS CLOSED SIMILAR BOUTIQUES IN FAVOR OF A CATALOG AIMED AT AFRICANAMERICANS MONTGOMERY WARD IS OPENING HOMELAND AUTHENTICS BOUTIQUES IN ABOUT 8 OF ITS STORES THIS FALL CAPITALIZING ON THE POPULARITY OF AFRICANPRINT CLOTH USED IN USSTYLE CLOTHING ACCESSORIES AND FURNISHINGS I DON'T KNOW IF WE'RE SMARTER THAN PENNEY BUT WE HAVE FOUND THIS NICHE TO BE PROFITABLE AND IT MAKES MORE OF AN IMPACT WHEN IT'S CENTRALLY DISPLAYED SAYS MONTGOMERY WARD MARKETER BRENT PAULSEN THE CHAIN'S 100ITEM COLLECTION FEATURES CLOTH IMPORTED BY INTERCONTINENTAL BUSINESS NETWORK A BLACKOWNED NEW YORK FIRM THAT DOMINATES THE MARKET IN AUTHENTIC AFRICAN CLOTH HERE AND ALSO MAKES MANY PRODUCTS LARGE ASIAN MILLS ARE MASSPRODUCING MORE AND MORE AFRICANSTYLE PRINTS BUT AUTHENTIC AFRICAN CLOTH AND GARMENTS MADE FOR THE US MARKET ARE HARDER TO COME BY WHEN PENNEY TRIED LAST YEAR TO EXPAND ITS AFRICAN BOUTIQUES TO 350 STORES FROM 22 WE HAD DIFFICULTY GETTING MERCHANDISE TO MEET OUR QUALITY STANDARDS AND EXPERIENCED QUITE A FEW DELAYS IN SHIPPING SAYS GERALDA MILLER A PENNEY MANAGER PENNEY SHUT THE BOUTIQUES LAST WINTER AND INSTEAD IS MAILING ITS FASHION INFLUENCES CATALOG TO 800000 AFRICANAMERICAN HOMES THE CATALOG FEATURES CONTEMPORARY AFRICANINFLUENCED DESIGNS MADE IN THE US FROM MOSTLY NONAFRICAN CLOTH DESIGNED BY BLACKS MS MILLER SAYS PENNEY WILL LIMIT ITS OFFERINGS OF AFRICAN IMPORTS UNTIL IT FINDS A RELIABLE SOURCE FOR INCREASED SUPPLIES UNCONTROLLED RUMORS CAN QUICKLY SINK A PRODUCT IN BLACK COMMUNITIES ACCORDING TO A NEW BOOK ON RUMORS AND AFRICANAMERICANS IN I HEARD IT THROUGH THE GRAPEVINE PATRICIA TURNER A PROFESSOR OF AFRICANAMERICAN STUDIES AT THE UNIVERSITY OF CALIFORNIA DAVIS STUDIES AND DEBUNKS RUMORS THAT HAVE HURT PRODUCTS IN RECENT YEARS INCLUDING POPEYE'S FRIED CHICKEN TROOP SPORTSWEAR AND LIZ CLAIBORNE CLOTHES TROOP'S LINE OF BOMBER JACKETS WERE HOT WITH BLACK AND HISPANIC TEENAGERS IN 1985 UNTIL UNFOUNDED RUMORS SPREAD THAT THE SMALL FIRM WAS ASSOCIATED WITH THE KU KLUX KLAN THE COMPANY FOLDED IN 1989 WHEN RUMORS FLEW THAT REEBOK INTERNATIONAL HAD SOUTH AFRICAN TIES THE SPORTSGEAR COMPANY BATTLED BACK WITH BLACKTARGETED ADS AND FLIERS MS TURNER SAYS RUMORPRONE PRODUCTS TEND TO BE PREMIUMPRICED STATUS SYMBOLS OR ITEMS ASSOCIATED WITH HEALTH RISKS SUCH AS FAST FOODS CIGARETTES AND ALCOHOLIC BEVERAGES HEAVY TARGETING OF BLACKS CAN ALSO MAKE A PRODUCT ESPECIALLY VULNERABLE TO RUMORS THERE ARE ALL THESE THINGS THAT COMPANIES DO TO GET US TO SPEND BLACK CONSUMERS WILL FIGHT BACK AGAINST UBIQUITOUS BILLBOARDS AND TELEVISION COMMERCIALS WITH RUMORS SAYS MS TURNER YET AN ABSENCE OF MARKETING AIMED AT BLACKS CAN ALSO NURTURE RUMOR LAST FALL MARITHE FRANCOIS GIRBAUD SPORTSWEAR PLACED ITS FIRST ADS IN BLACKOWNED NEWSPAPERS IN CHICAGO TO SQUELCH RUMORS THAT IT DIDN'T APPRECIATE THE HUGE BLACK FOLLOWING FOR ITS 65 JEANS THEY CAME BACK WITH ARTILLERY BLACK PEOPLE RESPECT OUR MEDIA SAYS CHICAGO MARKETING CONSULTANT YVETTE MOYO RESULT GIRBAUD IS STILL IN THE STORES AND DOING WELL SHE ADDS THE NEW 199394 GUIDE TO MULTICULTURAL RESOURCES LISTS MORE THAN 3000 AFRICAN ASIAN HISPANIC AND NATIVE AMERICAN ASSOCIATIONS AND INSTITUTIONS AS WELL AS GOVERNMENT AGENCIES SERVING THOSE ETHNIC GROUPS IN FOUR YEARS THE BIENNIAL GUIDE HAS GROWN TO 500 PAGES FROM 125 SAYS PUBLISHER CHARLES A TAYLOR OF PRAXIS PUBLICATIONS MADISON WIS THE 49 BOOK IS AIMED AT CORPORATE EDUCATIONAL AND GOVERNMENT USERS LOOKING TO REACH OUT TO RACIAL MINORITY GROUPS NEW YORK SPANISHLANGUAGE DAILY EL DIARIO IS MOVING INTO HISPANICMEDIA BUYING AND MARKETING RECENTLY EL DIARIO HELPED CITIBANK ROLL OUT A NEW SECURED CREDIT CARD AIMED AT HISPANICS BY ORCHESTRATING A CAMPAIGN COMBINING RETAIL DISPLAYS TRANSIT ADVERTISING PROMOTIONS AND DISCOUNTED ADS IN ALL NEW YORK SPANISHMEDIA OUTLETS INCLUDING EL DIARIO'S COMPETITORS 9310260166 931026 WHO'S NEWS RELIANCE GROUP HOLDINGS INC RELIANCE GROUP HOLDINGS INC NEW YORK CARTER BURDEN AND THOMAS P GERRITY WERE ELECTED DIRECTORS OF THIS INSURANCE HOLDING COMPANY INCREASING THE SIZE OF THE BOARD TO 14 AS OF DECEMBER MR BURDEN 52 YEARS OLD IS CHAIRMAN OF THE BOARD OF CRB BROADCASTING CORP AND A MANAGING PARTNER OF WILLIAM AM BURDEN & CO DR GERRITY 52 IS DEAN OF THE WHARTON SCHOOL OF THE UNIVERSITY OF PENNSYLVANIA 9310260165 931026 ECONOMY MORTGAGEBANKERS GROUP FOCUSES ON MINORITY LOANS WASHINGTON THE MORTGAGE BANKERS ASSOCIATION PLEDGED A MAJOR EFFORT TO HELP WIPE OUT LENDING PRACTICES THAT DISCRIMINATE AGAINST MINORITIES AT THE ASSOCIATION'S ANNUAL MEETING IN CHICAGO STEPHEN ASHLEY THE GROUP'S NEW PRESIDENT ANNOUNCED PLANS TO HELP MORTGAGE LENDERS DO A BETTER JOB OF FINDING MINORITY APPLICANTS AND MAKING LOANS TO THEM THE GROUP INCLUDES 2700 INDEPENDENT MORTGAGE LENDERS AND SOME BANK MORTGAGELENDING UNITS MR ASHLEY OUTLINED A PROGRAM THAT INCLUDES DEVELOPING MORTGAGELENDING EMPLOYEES' CULTURAL AWARENESS A TRAINING PROGRAM TO HELP LENDING OFFICIALS COUNSEL MINORITY MORTGAGE APPLICANTS ABOUT HOW TO QUALIFY FOR LOANS CONSUMER SEMINARS MARKETING GUIDELINES TO HELP LENDERS INCREASE AND IMPROVE SELLING TO MINORITIES AND A FAIRLENDING FORUM AT HOWARD UNIVERSITY IN WASHINGTON DEEPAK BHARGAVA A LOBBYIST FOR THE ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM NOW OR ACORN SAW THE MORTGAGE BANKERS' PLANS AS HELPFUL AT LEAST AT THE MARGINS BUT HE TERMED THOSE PLANS AS A DEFENSIVE MOVE TO HEAD OFF REGULATORY EFFORTS BY THE HOUSING AND URBAN DEVELOPMENT DEPARTMENT AND PENDING LEGISLATION THAT WOULD EXTEND THE PROVISIONS OF THE COMMUNITY REINVESTMENT ACT TO COVER MORTGAGE BANKERS 9310260164 931026 WHO'S NEWS DIED JOHN W MOXON 87 FORMER CHAIRMAN OF CARPENTER STEEL CO NOW CARPENTER TECHNOLOGY CORP SUNDAY IN OLEY PA CLOYCE K BOX 70 FOUNDER AND CHAIRMAN OF BOX ENERGY CORP SUNDAY IN DURHAM NC OF CARDIAC ARREST 9310260163 931026 WHO'S NEWS FMC CORP FMC CORP CHICAGO LARRY D BRADY EXECUTIVE VICE PRESIDENT WAS NAMED PRESIDENT OF THIS MAKER OF CHEMICALS AND MACHINERY HE SUCCEEDS ROBERT N BURT WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE MR BRADY 50 YEARS OLD WILL CONTINUE TO HEAD AGRICULTURAL CHEMICAL DEFENSE SYSTEMS FOOD MACHINERY ENERGY AND TRANSPORTATION EQUIPMENT GROUPS AND WILL CONTINUE TO BE IN CHARGE OF THE COMPANY'S TECHNOLOGY MANUFACTURING AND INFORMATION RESOURCES DEPARTMENTS HE ALSO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OF THE FMC GOLD CO UNIT 9310260162 931026 EVEN THE LOWLY BRATWURST GAINS A STARRING ROLE IN EUROIZATION BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL AMSTERDAM WILLIAM YORK'S NEW MUSICAL COMPOSITION IS PERHAPS THE WURST IDEA IN THE HISTORY OF OPERA IT'S ABOUT SAUSAGE BORROWING FROM THE 67 SAUSAGERELATED REPORTS ISSUED BY THE EUROPEAN COMMUNITY IN RECENT YEARS THE 51YEAROLD SCOT HAS COOKED UP TOWARDS A SINGLE EUROPEAN SAUSAGE THE SATIRE OF THE EC'S PENCHANT FOR EUROIZING EVERYTHING FROM CURRENCY TO TOILETFLUSHING WHICH MR YORK HOPES TO PREMIERE HERE IN APRIL IS SET AT THE STRASBOURG SAUSAGE TREATY CONFERENCE ITS KEY FIGURES ARE FRENCH MEZZOSOPRANO BRIDGETTE CROISSANT AND GERMAN BASS KARLHEINZ VON KLEIBER WHO PLOT TO FORCE THE OTHER NEGOTIATORS TO ACCEPT THEIR ALSACELORRAINE SAUSAGE AS EUROPE'S STANDARDBEARER THEIR SCHEME IS DISCOVERED BY THE OTHERS WHO INCLUDE DIMWITTED TENOR JULIAN LYMPECHIN OF BRITAIN AND PLODDING DUTCH SOPRANO ANNEKE VAN KLOMPEN MS VAN KLOMPEN AND MR LYMPECHIN'S SCOTTISH AIDEDECAMP BARITONE HAMISH MCLAKEY BEGIN A TORRID LOVE AFFAIR THEIR HEARTTOHEART IS SPICED WITH ALLUSIONS TO A REAL EC COMMISSION REPORT ON SAUSAGE COLORINGS AND FLAVORINGS HE YOU KNOW ANNEKE I'VE ONLY KNOWN YOU TWO DAYS AND ALREADY I FEEL I CAN TALK TO YOU ABOUT EVERY CLAUSE HE OF EVERY SUBSECTION SHE HAMISH OH HAMISH THE OPERA WAS INSPIRED BY A 1991 DUTCH GOVERNMENT PAMPHLET WRITTEN WHILE THE MAASTRICHT TREATY WAS BEING NEGOTIATED IT NOTES THAT SAUSAGES WILL HAVE TO COMPLY WITH A NUMBER OF BASIC EC REQUIREMENTS BUT SEEKS TO ALLAY FEARS THAT ONE DAY THERE WILL BE A SINGLE EUROPEAN SAUSAGE AND AT THAT MR YORK WHOSE COMPOSITIONS RANGE FROM AD JINGLES TO STRING QUARTETS HEARD THE MUSE CALLING MR YORK SAYS HE'S IN FAVOR OF EUROPEAN INTEGRATION BUT FEELS THE EC COMMISSION OFTEN GOES TOO FAR THE IDEA OF THIS PIECE IS NOT TO RUBBISH THE EC BUT TO POKE FUN AT THE JARGON AND BUREAUCRACY HE SAYS AND LIKE MOST EC MEETINGS THE STRASBOURG SAUSAGE TREATY CONFERENCE ADJOURNS WITHOUT RESOLUTION AND THE DELEGATES VOW TO RECONVENE AND TRY AGAIN MAYBE ANOTHER PLACE ANOTHER TIME 9310260161 931026 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 DOMINION TEXTILE USA INC 150 MILLION OF SENIOR NOTES DUE NOV 1 2003 PRICED AS 8875S AT 99508 TO YIELD 895 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS WERE RATED BA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO DOMINION TEXTILE USA IS A UNIT OF DOMINION TEXTILE LTD FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF LOWER INDEXED FLOATINGRATE NOTES DUE NOV 5 2003 PRICED AT PAR TO YIELD 362 ACCORDING TO MCM CORPORATEWATCH THE NOTES WILL PAY AND FLOAT QUARTERLY AT THE LOWER OF EITHER 25 BASIS POINTS OVER THREEMONTH LONDON INTERBANK OFFERED RATE OR 25 BASIS POINTS UNDER 10YEAR CURRENT MATURITY TREASURY THE NOTES ARE NONCALLABLE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST TENNESSEE BANK PHILADELPHIA ELECTRIC CO 225 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE NOV 1 2024 PRICED AS 725S AT 99025 TO YIELD 733 ACCORDING TO MCM CORPORATEWATCH THE ISSUE WHICH IS NONCALLABLE FOR FIVE YEARS WAS PRICED AT A SPREAD OF 114 BASIS POINTS ABOVE TREASURYS THE BONDS ARE RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE BONDS WERE WON IN COMPETITIVE BIDDING BY LEHMAN BROTHERS INC RYKOFFSEXTON INC 130 MILLION OF SENIOR SUBORDINATED NOTES DUE NOV 1 2003 PRICED AS 8875S AT 99187 TO YIELD 9 THE NOTES WHICH ARE NONCALLABLE FOR FIVE YEARS ARE RATED BA2 BY MOODY'S AND DOUBLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO TOLMEX SA 250 MILLION OF NOTES DUE NOV 1 2003 PRICED AS 8375S AT 99766 TO YIELD 841 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 298 BASIS POINTS ABOVE TREASURYS RATED BA2 BY MOODY'S AND DOUBLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO TOLMEX IS A UNIT OF CEMENTOS MEXICANOS SA PHYSICIAN CORP OF AMERICA FIVE MILLION COMMON SHARES PRICED AT 1925 APIECE THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO DETROIT 1988 MILLION SERIES 1993 WATERSUPPLYSYSTEM REVENUE AND REVENUEREFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 34 IN 1995 TO 543 IN 2023 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 750 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES G026 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 535 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1635 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 176 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 5001 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1633 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1634 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 705 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS DAIWA HOUSE INDUSTRY CO JAPAN 800 MILLION OF 1 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE NOV 10 1997 AT ISSUE PRICE PAR VIA NOMURA INTERNATIONAL PLC BONDS COME WITH TWO WARRANTS TO PURCHASE SHARES IN THE COMPANY AT TERMS TO BE FIXED NOV 2 AT INDICATED PREMIUM 25 EXERCISE PERIOD OF WARRANTS RUNS FROM NOV 24 TO OCT 30 1997 FEES 225 SPECIAL FEE 015 DEDUCTED FOR LEAD MANAGER EUROPEAN INVESTMENT BANK SUPRANATIONAL 500 BILLION LIRE OF 7625 EUROBONDS DUE NOV 25 1996 AT ISSUE PRICE 1009425 VIA BANCA DI ROMA SPA IMI BANK LUXEMBOURG SA AND NOMURA INTERNATIONAL PLC REOFFERED AT 9988 TO YIELD 767 FEES 125 FUJITEC CO JAPAN 60 MILLION OF 0875 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE NOV 10 1997 AT ISSUE PRICE PAR VIA NOMURA INTERNATIONAL PLC GUARANTOR DAIWA BANK LTD BONDS COME WITH TWO WARRANTS TO PURCHASE SHARES IN COMPANY AT TERMS TO BE FIXED NOV 10 AT INDICATED PREMIUM 25 EXERCISE PERIOD OF WARRANTS WILL RUN FROM NOV 25 TO OCT 27 1997 FEES 225 SPECIAL FEE OF 015 DEDUCTED FOR LEAD MANAGER FUJITEC CO JAPAN 30 MILLION OF UNSUBORDINATED FLOATINGRATE EURONOTES DUE NOV 10 1998 AT ISSUE PRICE PAR VIA DAIWA BANK CAPITAL MANAGEMENT LTD INTEREST PAID SEMIANNUALLY AT SIXMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS PLUS 275 BASIS POINTS GUARANTOR DAIWA BANK LTD FEES 025 FUJITEC CO JAPAN 100 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE NOV 10 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 0375 COUPON AT PAR VIA NIKKO BANK SWITZERLAND LTD EACH NOTE CARRIES 50 WARRANTS EXERCISABLE FROM NOV 25 TO OCT 27 1997 TO PURCHASE COMPANY STOCK AT EXPECTED 25 PREMIUM ABOVE CLOSING SHARE PRICE NOV 1 WHEN TERMS FIXED FEES 1625 LANDESBANK HESSENTHURINGEN GIROZENTRALE GERMANY 150 MILLION OF 625 SUBORDINATED EUROBONDS DUE NOV 10 2008 AT ISSUE PRICE 1012 VIA LEAD LEHMAN BROTHERS INTERNATIONAL REOFFERED AT 9945 TO YIELD 631 A SPREAD OF 75 BASIS POINTS OVER THE 10YEAR US TREASURY FEES 225 POINTS NEDERLANDSE WATERSCHAPS BANK NV NETHERLANDS 150 MILLION DUTCH GUILDERS OF 625 EUROBONDS DUE JAN 5 2009 AT ISSUE PRICE 1006 VIA INTERNATIONALE NEDERLANDEN BANK NV REOFFERED AT 999 TO YIELD 626 A SPREAD OF 179 BASIS POINTS OVER 825 DUTCH STATE LOAN DUE 2007 FEES ONE STELUX HOLDINGS LTD HONG KONG UP TO 125 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 175 NOTES DUE MARCH 31 2001 AT PAR VIA NOMURA BANK SWITZERLAND EACH NOTE CONVERTIBLE FROM MAY 9 1994 TO MAR 15 2001 AT EXPECTED 5 PREMIUM OVER CLOSING SHARE PRICE OCT 28 WHEN TERMS FIXED FEES TWO SUN HUNG KAI PROPERTIES FINANCE CAYMAN LTD HONG KONG PARENT 300 MILLION OF 5625 EUROBONDS DUE NOV 24 1998 AT ISSUE AND FIXED REOFFER PRICE 99695 VIA MORGAN STANLEY INTERNATIONAL BONDS YIELD 57 A SPREAD OF 82 BASIS POINTS ABOVE COMPARABLE US TREASURY GUARANTOR SUN HUNG KAI PROPERTIES LTD FEES 04 USAIR INC US PARENT 337 MILLION OF 1993A PASSTHROUGH CERTIFICATES ISSUED AND REOFFERED PAR IN THREE SEPERATE TRANCHES VIA MORGAN STANLEY INTERNATIONAL LTD FIRST TRANCHE 75 MILLION OF A1 EURONOTES DUE SEPT 1 1998 WITH A SEMIANNUAL COUPON OF 8625 AND YIELD MARGIN OF 393 BASIS POINTS OVER FIVEYEAR US TREASURY SECOND TRANCHE 100 MILLION OF REGISTERED A2 NOTES DUE SEPT 1 2003ON OF 9625 THIRD TRANCHE 162 MILLION OF REGISTERED A3 NOTES DUE MARCH 1 2013 WITH SEMIANNUAL COUPON 10375 GUARANTOR USAIR GROUP INC AND BONDS SECURED ON NINE BOEING 757 AIRCRAFT OWNED BY USAIR FEES TWO INTEREST PAID SEMIANNUALLY WORLD BANK SUPRANATIONAL 116 BILLION ESCUDOS OF 85 EUROBONDS DUE NOV 16 1998 AT ISSUE PRICE 1007 VIA BANCO FINANTIA SA REOFFERED AT 9945 TO YIELD 864 A SPREAD OF 25 BASIS POINTS BELOW COMPARABLE PORTUGUESE TREASURY FEES 1625 INCLUDED IS A SPECIAL LEAD MANAGER'S FEE OF 025 9310260160 931026 INTERNATIONAL WITH GAMES NO LONGER AT STAKE BEIJING REASSERTS ITS AUTHORITY CRACKDOWN ON DISSIDENTS AND MEDIA SIGNALS FIGHT AHEAD FOR DENG'S MANTLE BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG CHINA IS CRACKING DOWN ON DISSENT AND THE DISSEMINATION OF INFORMATION IN WHAT APPEARS TO BE PART OF A STRUGGLE TO REIMPOSE CENTRALGOVERNMENT CONTROL ALONG WITH THE ARREST OF SEVERAL DISSIDENTS AND REPORTERS CHINESE AUTHORITIES RECENTLY CLAMPED DOWN ON PRIVATE USE OF SATELLITE DISHES AND ISSUED NEW RULES ON THE OPERATION OF PAGERS AND CORDLESS TELEPHONES CHINA PERIODICALLY LAUNCHES SUCH CRACKDOWNS BUT THE LATEST ONE COMING AS THE HEALTH OF THE 89YEAROLD PARAMOUNT LEADER DENG XIAOPING DETERIORATES HAS FUELED SPECULATION AND FEAR THAT HIS POTENTIAL SUCCESSORS ARE USING TOUGH POLICIES TO WIN SUPPORT FROM CONSERVATIVE FACTIONS IN PREPARATION FOR A POSTDENG POWER STRUGGLE CHINA'S RECENT ACTIONS CONTRAST WITH ITS BEHAVIOR DURING ITS BID TO HOST THE OLYMPIC GAMES IN 2000 SHORTLY BEFORE THE DECISION WAS MADE LAST MONTH ON THE SITE FOR THOSE GAMES CHINA RELEASED SEVERAL PROMINENT DISSIDENTS INCLUDING WEI JINGSHENG AND ALLOWED OTHERS TO GO ABROAD AFTER LOSING THE BID TO SYDNEY HOWEVER CHINA HAS PROCEEDED SWIFTLY IN TRYING PENDING CASES AGAINST DISSIDENTS AS WELL AS UNCOVERING NEW ONES A DAY AFTER CHINA LOST THE OLYMPIC BID TWO SHANGHAI DISSIDENTS WENT ON TRIAL ON CHARGES OF SETTING UP A COUNTERREVOLUTIONARY ORGANIZATION ACTIVISTS IN BEIJING WUHAN AND SEVERAL OTHER CITIES ARE EXPECTED TO GO ON TRIAL SOON CHINA ALSO RECENTLY ARRESTED IN SEPARATE CASES A HONG KONG REPORTER AND A CHINESE ONE ON CHARGES RELATING TO OBTAINING OR DISSEMINATING INFORMATION CLASSIFIED AS STATE SECRETS SOME ANALYSTS SUGGEST THAT THE ACTIONS ARE PARTLY MEANT AS A RETORT TO US ATTEMPTS TO LINK CHINA'S HUMANRIGHTS RECORD TO ITS OLYMPIC BID AND RENEWAL OF ITS MOSTFAVOREDNATION TRADE STATUS A MORE SALIENT REASON MAY BE CHINA'S DOMESTIC SITUATION VICE PREMIER ZHU RONGJI'S EFFORT TO COOL AN OVERHEATING ECONOMY AN EFFORT THAT HAS MET WITH RESISTANCE FROM LOCAL LEADERS HAS HIGHLIGHTED THE EXTENT TO WHICH BEIJING HAS LOST BOTH ECONOMIC AND IDEOLOGICAL CONTROL OVER THE PROVINCES BURGEONING BUSINESS LINKS WITH FOREIGNERS THE WIDE ACCESSIBILITY OF FOREIGN SATELLITETV PROGRAMS AND CHINA'S GROWING PURCHASING POWER HAVE DRAWN A FLOOD OF WESTERN IDEAS AND PRACTICES INTO THE COUNTRY AT THE SAME TIME INCREASED CONTACTS BETWEEN CHINESE AND FOREIGNERS HAVE LED TO A NUMBER OF EMBARRASSING LEAKS TO THE FOREIGN NEWS MEDIA THE WHOLE RAPID OPENING OF THE COUNTRY IS VERY THREATENING TO ONEPARTY RULE SAYS ROBIN MUNRO OF THE NEW YORKBASED HUMAN RIGHTS GROUP ASIAWATCH THE CHINESE GOVERNMENT'S ONSLAUGHT AGAINST DISSENT AND JOURNALISTS HE CONTENDS IS AN ATTEMPT TO CONTINUE ITS CONTROL ON ALL INFORMATION SOME BELIEVE THAT THE TIGHTENING MEASURES COULD ALSO BE RELATED TO A JOCKEYING FOR POWER AT THE TOP AS MR DENG'S HEALTH WORSENS EVEN IF HE CONTINUES TO HOLD ON IT DOESN'T WIN ANY OF THE TOP LEADERS ANY POINTS TO SHOW A SOFTENING TO FOREIGNERS OR A WEAKNESS TO DISSENT SAYS A HONG KONG ACTIVIST INVOLVED WITH DISSIDENTS IN CHINA WHATEVER THE MOTIVATION THE CURRENT CRACKDOWN COULD FURTHER STRAIN CHINA'S TENSE TIES WITH THE US EVEN AS WASHINGTON APPEARS TO BE SEEKING A MORE CONCILIATORY STANCE WITH BEIJING THIS MONTH A NUMBER OF HIGHLEVEL CLINTON ADMINISTRATION OFFICIALS HAVE VISITED OR ARE PLANNING TO VISIT BEIJING INCLUDING AGRICULTURE SECRETARY MIKE ESPY AND JOHN SHATTUCK THE STATE DEPARTMENT'S TOP HUMANRIGHTS SPECIALIST MOREOVER A RECENT US POLICY REVIEW CONCLUDED THAT THE FOURYEAR FREEZE IN RELATIONS BETWEEN THE TWO COUNTRIES WASN'T SOLVING CRUCIAL PROBLEMS EVEN SO CHINA'S POOR HUMANRIGHTS RECORD IS PROVIDING MORE FUEL FOR ITS CRITICS IN THE US THESE EPISODES REGARDING HUMAN RIGHTS SUGGEST THAT NOTHING HAS MOVED FORWARD AND IN FACT THERE HAS BEEN SOME MOVEMENT BACKWARDS HARRY HARDING A SENIOR FELLOW AT THE BROOKINGS INSTITUTION SAID IN A SPEECH AT THE UNIVERSITY OF HONG KONG LAST WEEK HE SAID THESE INCIDENTS ARE ADDING TO A GROWING SENSE IN WASHINGTON THAT IT WON'T BE EASY TO RENEW CHINA'S MOSTFAVOREDNATION TRADE STATUS IN 1994 WHICH PRESIDENT CLINTON HAS MADE CONDITIONAL ON BEIJING'S HUMANRIGHTS PRACTICES 9310260159 931026 FINANCING BUSINESS EURONEVADA MINING CORP EURONEVADA MINING CORP TORONTO THE OWNER OF GOLD ROYALTIES SAID IT AGREED TO SELL 15 MILLION STOCKWARRANT UNITS AT 38 CANADIAN DOLLARS US2913 EACH FOR TOTAL PROCEEDS OF C57 MILLION THE UNITS WHICH ARE ONLY FOR SALE IN CANADA ARE BEING SOLD TO A GROUP OF SECURITIES FIRMS LED BY FIRST MARATHON SECURITIES LTD SUBJECT TO REGULATORY APPROVAL EACH UNIT CONSISTS OF ONE COMMON SHARE AND ONE SHAREPURCHASE WARRANT EURONEVADA CURRENTLY HAS 161 MILLION SHARES OUTSTANDING EURONEVADA SAID IT WILL USE THE PROCEEDS TO ACQUIRE ROYALTY RIGHTS ON GOLDMINING OPERATIONS OVERSEAS THE TORONTO COMPANY CURRENTLY OWNS ROYALTIES ON GOLD OPERATIONS IN NORTH AMERICA AND CUBA 9310260158 931026 WHO'S NEWS CATHAY PACIFIC AIRWAYS AND DRAGON AIRLINES PROMOTE 2 EXECUTIVES HONG KONG WITH AN EYE ON 1997 CATHAY PACIFIC AIRWAYS AND HONG KONG DRAGON AIRLINES PROMOTED TWO YOUNG CHINESE EXECUTIVES TO SENIOR POSTS AS PART OF A STREAMLINING OF THEIR MANAGEMENTS CATHAY ANNOUNCED LATE MONDAY THAT LINUS CHEUNG WILL ASSUME THE NEW POST OF DEPUTY MANAGING DIRECTOR COMMERCIAL RESPONSIBLE FOR THE AIRLINE'S COMMERCIAL AND MARKETING ACTIVITIES DRAGONAIR AN AFFILIATE OF CATHAY NAMED PHILIP CHEN AS CHIEF OPERATING OFFICER SUCCEEDING SIMON HEALE ANALYSTS VIEWED BOTH APPOINTMENTS AS PARTLY AIMED AT POSITIONING THE AIRLINES FOR MID1997 WHEN CHINA IS TO REGAIN SOVEREIGNTY OVER HONG KONG CATHAY WHOSE MAIN SHAREHOLDER IS SWIRE PACIFIC LTD CONTROLLED BY THE SWIRE FAMILY OF BRITAIN HAS BEEN TRYING TO SHED A COLONIAL IMAGE AS THE HANDOVER APPROACHES CATHAY AND SWIRE HAVE A COMBINED STAKE OF 43 IN DRAGONAIR THE LATEST APPOINTMENTS ADVANCE MESSRS CHEUNG AND CHEN AHEAD OF SOME OF THE AIRLINES' SENIOR BRITISH MANAGERS 9310260157 931026 WHO'S NEWS SILVER KING COMMUNICATIONS INC SILVER KING COMMUNICATIONS INC ST PETERSBURG FLA JEFFREY M MCGRATH 49 YEARS OLD PRESIDENT OF THIS COMPANY WHICH OWNS 12 INDEPENDENT TELEVISION STATIONS HAS ALSO BEEN NAMED CHAIRMAN HE SUCCEEDS ROBERT T SUTTON 51 WHO LEFT TO PURSUE OPPORTUNITIES WITH THE GOLF CHANNEL THE COMPANY SAID STEVEN H GRANT THE COMPANY'S CHIEF FINANCIAL OFFICER AND EXECUTIVE VICE PRESIDENT BECOMES VICE CHAIRMAN 9310260156 931026 BUSINESS BRIEFS XEROX CORP COMPLETED THE SALE OF FURMAN SELZ HOLDING CORP TO A GROUP OF FURMAN SELZ EMPLOYEES FOR 99 MILLION IN CASH AND JUNIOR SUBORDINATED DEBT COMDISCO INC SAID THE GENERAL SERVICES ADMINISTRATION AWARDED A 50 MILLION DISASTERRECOVERY CONTRACT TO ITS DISASTER RECOVERY SERVICES DIVISION THE CONTRACT IS THE FIRSTEVER INTERAGENCY DISASTERRECOVERY CONTRACT FOR THE FEDERAL GOVERNMENT CHEMICAL BANKING CORP SAID IT WILL MARKET INSURANCE POLICIES TO ITS BANKING CUSTOMERS THROUGH A NEW UNIT CHEMICAL INSURANCE AGENCY INC SOME POLICIES WILL BE OFFERED IMMEDIATELY AND OTHERS WITHIN A YEAR TO PROVIDE CUSTOMER SERVICE FOR INSURANCE BUYERS CHEMICAL SAID IT WILL GET HELP FROM A UNIT OF CONSECO INC FLAGSTAR CORP'S CANTEEN CORP UNIT PURCHASED THE ASSETS OF BLUE RIBBON SERVICES INC A PHILADELPHIABASED FOOD SERVICE COMPANY TERMS WEREN'T DISCLOSED GTE GOVERNMENT SYSTEMS CORP A UNIT OF GTE CORP RECEIVED A 309 MILLION FEDERAL CONTRACT FOR TELECOMMUNICATIONS EQUIPMENT AND TECHNICAL SUPPORT THE UNIT RECEIVED A 10YEAR CONTRACT FROM THE GSA FOR EQUIPMENT AND SUPPORT IN CALIFORNIA AND NEVADA BURNHAM PACIFIC PROPERTIES INC COMPLETED ITS 58 MILLION ACQUISITION OF A LARGE PORTION OF A SHOPPING CENTER IN CITY OF INDUSTRY CALIF 9310260155 931026 SHL SYSTEMHOUSE SIGNS PACT OTTAWA SHL SYSTEMHOUSE INC SAID IT SIGNED A 10YEAR CONTRACT WITH CANADA POST CORP VALUED AT 10 BILLION CANADIAN DOLLARS US7668 MILLION SYSTEMHOUSE A COMPUTER SYSTEMS INTEGRATION CONCERN WILL PROVIDE DATA PROCESSING AND TELECOMMUNICATIONS SERVICES TO CANADA POST WHICH OPERATES THE COUNTRY'S POSTAL SERVICE 9310260154 931026 PRINCETON ELECTRONIC PLANS MOVE PHOENIX PRINCETON ELECTRONIC PRODUCTS INC SAID IT WILL MOVE ITS ELECTRONIC PRODUCTS DIVISION FROM BRUNSWICK NJ TO PHOENIX BY THE END OF NOVEMBER PRINCETON SAID FOUR EMPLOYEES WILL LOSE THEIR JOBS AS A RESULT OF THE MOVE THE COMPANY IS STILL SEARCHING FOR A FACILITY IN PHOENIX 9310260153 931026 ATARI CORP SUES SEGA OF AMERICA SUNNYVALE CALIF ATARI CORP HAS FILED A SUIT AGAINST SEGA OF AMERICA INC CHARGING THAT ITS PATENT CONTROLLING THE BASIC WAY IN WHICH VIDEOGAME ACTION MOVES ACROSS THE SCREEN IS INFRINGED BY THE REDWOOD CITY CALIF UNIT OF JAPAN'S SEGA ENTERPRISES LTD THE SUIT FILED IN SAN FRANCISCO DISTRICT COURT SEEKS UNSPECIFIED DAMAGES SEGA SAID THE SUIT HAD NO MERIT AND THAT IT INTENDED TO FIGHT IT 9310260151 931026 PROVIDENCE HEALTH PROXY FIGHT IS TIED WITH 45 FOR EACH COMMONWEALTH ASSOCIATES SAYS IT AMASSED MAJORITY SHARES BUT IS STILL SHORT OF 501 BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL BEREA OHIO OUTSIDE INVESTORS SEEKING CONTROL OF PROVIDENCE HEALTH CARE INC SAID THEY HAVE AMASSED A MAJORITY OF VOTING STOCK HOWEVER INSIDERS SAID NEITHER SIDE HAD ENOUGH SHARES TO WIN THE PROXY FIGHT EACH SIDE NEEDS TO CONTROL AT LEAST 501 OF 3699004 SHARES OUTSTANDING TO WIN THE STRUGGLE BEGAN IN AUGUST WHEN COMMONWEALTH ASSOCIATES AN INVESTMENT BANK WHICH TOOK PROVIDENCE PUBLIC IN FEBRUARY 1992 FILED ITS INTENT TO SOLICIT PROXIES WE HAVE ROUGHLY 45 OF VOTING STOCK AND WE'RE AT THE SAME PLACE THEY COMMONWEALTH ARE SAID A SPOKESMAN FOR LAWRENCE B CUMMINGS CHAIRMAN OF THE HEALTHCARE CONCERN HOWEVER KERRY DUKES COMMONWEALTH'S CHIEF OPERATING OFFICER SAID THAT A GROUP OF INVESTORS INCLUDING COMMONWEALTH WAS OVER THE TOP BY A SUFFICIENT AMOUNT AND HAD FORMED A NEW BOARD TO RUN PROVIDENCE WE HAVE REMOVED THE BOARD OF DIRECTORS OF PROVIDENCE HEALTH CARE AND WE ARE NOT GOING TO SOLICIT FURTHER MR DUKES SAID ADDING THAT THE NEW BOARD MET LATE YESTERDAY AND ADOPTED A STOCKHOLDERS' RIGHTS PLAN AND BYLAW AMENDMENTS TO BAR COERCIVE TAKEOVER EFFORTS COMMONWEALTH'S PROXIES WILL NOW BE TALLIED BY AN INDEPENDENT INSPECTOR BOTH SIDES DISCLOSED SEVERAL STATE AND FEDERAL COURT RULINGS WHICH HAD AN IMPACT ON THE PROXY FIGHT COMMONWEALTH SAID IT WAS GIVEN A BOOST WHEN THE DELAWARE CHANCERY COURT ISSUED A PRELIMINARY INJUNCTION TO PREVENT NUMED HOME HEALTH CARE INC FROM VOTING ITS 20 STAKE IN PROVIDENCE COMMONWEALTH WHICH CONTROLS 8 OF PROVIDENCE HAD FILED A MOTION TO BAR NUMED FROM VOTING SHARES IT ACQUIRED IN LATE SEPTEMBER AFTER PROVIDENCE ACQUIRED A 40 STAKE IN NUMED THE STOCK AND CASH TRANSACTION GAVE NUMED 20 OF PROVIDENCE COMMONWEALTH'S SUIT ALLEGED BREACH OF FIDUCIARY DUTY IN THAT TRANSACTION IN ISSUING THE INJUNCTION THE DELAWARE JUDGE SAID THERE'S A SUBSTANTIAL LIKELIHOOD THAT COMMONWEALTH COULD PROVE THAT PROVIDENCE'S PRIMARY MOTIVE FOR THE NUMED TRANSACTION WAS TO WIN THE PROXY FIGHT THE PROVIDENCE SPOKESMAN SAID WE TOTALLY DISAGREE WITH THE JUDGE'S DECISION PROVIDENCE MEANWHILE PRAISED A DECISION BY A FEDERAL COURT IN NEW YORK ALLOWING MR CUMMINGS TO RESUME BUYING SHARES AND VOTE THOSE SHARES IN THE PROXY FIGHT THE BUYING BY MR CUMMINGS CONTINUED YESTERDAY AT THE END OF TRADING HE AND SUPPORTERS OWNED ABOUT 44 OF SHARES OUTSTANDING NOT INCLUDING NUMED EARLIER IN THE DAY HIS SPOKESMAN SAID MR CUMMINGS TWO BROTHERS AND OTHER INSIDERS CONTROLLED ABOUT 425 OF SHARES OUTSTANDING PROVIDENCE ALSO APPLAUDED THE DELAWARE COURT'S DECISION DENYING COMMONWEALTH'S REQUEST FOR AN EXTENSION TO SOLICIT PROXIES BEYOND TODAY'S CLOSEOFBUSINESS DEADLINE BUT LATE YESTERDAY COMMONWEALTH SAID IT NO LONGER NEEDED THAT EXTRA TIME 9310260148 931026 VIRATEK SHORT INTEREST NEW YORK THE AMERICAN STOCK EXCHANGE SAID IT HAD INADVERTENTLY NOT INCLUDED THE SHORT POSITION OF VIRATEK INC IN ITS OCTOBER REPORT ON SHORT INTEREST THE SHORT POSITION IN VIRATEK FOR OCTOBER 1993 WAS 299128 SHARES COMPARED WITH 342772 SHARES IN SEPTEMBER AS A RESULT OF THE ADJUSTMENT THE TOTAL REPORTED AMEX SHORT POSITION SHOULD BE 101220658 SHARES INSTEAD OF THE PREVIOUSLY REPORTED 100921530 THE AMEX SAID 9310260146 931005 POLITICS & POLICY AS MICHEL LEAVES TOP HOUSE GOP POST YOUNGER GENERATION FLEXES FOR FIGHTS BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOR HOUSE REPUBLICANS THE LAST ACT OF THEIR LONG CIVIL WAR HAS BEGUN THE NIHILISTS ARE ROUTING THE COLLABORATORS IDEOLOGY ISN'T THE ISSUE STYLE IS AND IN THIS FIGHT ROBERT MICHEL OF ILLINOIS A DECORATED VETERAN OF THE BATTLE OF THE BULGE WASN'T COMBATIVE ENOUGH FOR THE TROOPS YESTERDAY THE 70YEAROLD MR MICHEL ANNOUNCED HE'LL RETIRE AT THE END OF NEXT YEAR AFTER 38 YEARS IN CONGRESS AND 14 AS THE MINORITY LEADER BUT THE REBELLIOUS YOUNGER GENERATION ANTICIPATING HIS DEPARTURE FOR SEVERAL YEARS HAD QUIT WAITING FOR MR MICHEL TO LEAVE EVEN IF IT HAD REQUIRED A COUP BY NEWT GINGRICH OF GEORGIA THE 50YEAROLD DEPUTY GOP LEADER AND FOUNDER OF THE GUERRILLA MOVEMENT THE YOUNG TURKS WERE MANEUVERING FOR A TAKEOVER WHEN HOUSE REPUBLICANS VOTE LATE NEXT YEAR IT'S TIME SAYS CALIFORNIA REP BILL BAKER A FRESHMAN WE DIDN'T COME HERE TO WATCH THE GRASS GROW WE CAME HERE FOR CHANGE AFTER NEARLY 40 YEARS UNDER A DEMOCRATIC MAJORITY THE SENTIMENT AMONG HOUSE REPUBLICANS IS AMONG THE MOST CONFRONTATIONAL IN CONGRESS'S HISTORY AND THE MOST HOSTILE EVER TOWARD THE INSTITUTION ITSELF FOR DEMOCRAT BILL CLINTON WHO'S GOING TO NEED REPUBLICAN VOTES TO WIN MAJOR ELEMENTS OF HIS AMBITIOUS AGENDA THAT SPELLS TROUBLE INDEED THE HOSTILITY AMONG HOUSE REPUBLICANS IS SUCH THAT EVEN THOSE WHO AGREE WITH MR CLINTON ON THE NORTH AMERICAN FREE TRADE AGREEMENT HAVE A TOUGH TIME SWALLOWING THE NOTION OF BEING ALLIES WITH HIM ALTHOUGH THE AGREEMENT WAS NEGOTIATED BY A REPUBLICAN PRESIDENT AND REFLECTS A FUNDAMENTAL TENET OF GOP ECONOMICS THERE'S SPECULATION THAT AT LEAST SOME HOUSE GOP MEMBERS WILL OPPOSE NAFTA RATHER THAN SUPPORT MR CLINTON PRELIMINARY TALLIES AMONG FRESHMAN HOUSE REPUBLICANS SHOW THAT FEWER THAN HALF SUPPORT THE TRADE AGREEMENT SO FAR THERE IS THIS NOTION WHY SHOULD WE PULL HIS CHESTNUTS OUT OF THE FIRE' SAYS PRONAFTA REP HENRY HYDE OF ILLINOIS A POTENTIAL ASPIRANT TO MR MICHEL'S JOB THE EFFORT TO DEFINE CONSERVATISM IN THE HOUSE IS THE BACKDROP FOR THE PRIVATE MANEUVERING TO SUCCEED MR MICHEL MR GINGRICH IS FAVORED TO WIN BUT IT'S INDICATIVE OF THE CONTROVERSY HE REPRESENTS EVEN IN THE HOUSE GOP THAT SEVERAL RIVALS ARE ABOUT AMONG THEM ARE REP GERALD SOLOMON OF NEW YORK WHO WAS ELECTED IN THE SAME CONSERVATIVE WAVE AS MR GINGRICH IN 1978 MR HYDE OF ILLINOIS AND BILL MCCOLLUM OF FLORIDA ALL ARE UNDENIABLY CONSERVATIVE AND ALL PROMISE COMBATIVENESS BUT MESSRS HYDE AND SOLOMON IN PARTICULAR SEE THEMSELVES AS A BRIDGE TO MODERATES IN BOTH PARTIES WHEN THEY BELIEVE MODERATION IS CALLED FOR FOR THE REPUBLICAN NIHILISTS THE ULTIMATE QUESTION ABOUT THEIR CONFRONTATIONAL APPROACH IS WHETHER IT ULTIMATELY SPELLS TROUBLE FOR THEM IF VOTERS REJECT THEIR PARTISANSHIP IN A 1970 BOOK 16 YEARS AFTER HOUSE DEMOCRATS FIRST WON THE MAJORITY POLITICAL SCIENTIST CHARLES O JONES IDENTIFIED A MINORITY PARTY MENTALITY AMONG REPUBLICANS GO ALONG GET ALONG AND GET WHAT YOU CAN IN A COMPROMISE THAT COULD PRACTICALLY BE MR MICHEL'S CREDO NOW SAYS THE THE UNIVERSITY OF WISCONSIN PROFESSOR THE MINORITY PARTY MENTALITY IS MUCH MORE OF AN ATTACK MENTALITY DURING HIS NEWS CONFERENCE YESTERDAY AN EMOTIONAL MR MICHEL ACKNOWLEDGED HIS FRUSTRATION WITH THE NEW GENERATION SAYING I NEVER WENT TO CONGRESS WITH THE IDEA OF TRASHING THAT INSTITUTION SHOULD PEORIA'S MR MICHEL BE SUCCEEDED A YEAR FROM NOW BY SUBURBAN ATLANTA'S MR GINGRICH REPUBLICANS OF THE MORE CONCILIATORY OLDSCHOOL MAIN STREET BREED THOSE MOSTLY FROM THE NORTHEAST AND MIDWEST WILL LOSE THEIR LAST GRIP ON HOUSE POWER THE SHIFT TO THE MORE RIGID REPUBLICANISM OF THE SOUTH AND WEST BEGAN IN 1978 THAT YEAR THE ELECTION OF MR GINGRICH AND LIKEMINDED GOP CONSERVATIVES NATIONWIDE PRESAGED RONALD REAGAN'S 1980 ELECTION TODAY ALL BUT 21 OF THE 175 HOUSE REPUBLICANS TOOK THEIR SEATS AFTER 1978 WITH EACH SUCCESSIVE ELECTION WAVES OF FRESH RECRUITS HAVE ARRIVED WITH DEMANDS FOR GREATER BELLICOSITY THE CONSERVATIVES SEE THEMSELVES AS REVOLUTIONARIES AND THEIR TACTICS AS ESSENTIAL TO OUSTING THE POWERCORRUPTED DEMOCRATS PEOPLE LIKE ME ARE WHAT STAND BETWEEN US AND AUSCHWITZ MR GINGRICH SAID RECENTLY AND THE GOP WHIP WHO HAS TEMPERED HIS STYLE TO HOLD THE SUPPORT OF MODERATES WHO TOOK A CHANCE ON HIS DYNAMISM IS NOW ONE OF THE LESS STRIDENT MEMBERS THE DRIVE TO OVERHAUL THE HEALTHCARE SYSTEM WILL PROVIDE A BIG TEST FOR REPUBLICANS TORN BETWEEN THE POPULARITY OF THE EFFORT AND THEIR TRADITIONAL OPPOSITION TO BIGGOVERNMENT INITIATIVES THEY CAN'T BE SEEN AS STANDING IN THE WAY OF ESSENTIAL REFORM SAYS POLITICAL SCIENTIST STEVEN SMITH OF THE UNIVERSITY OF MINNESOTA SO FAR MOST REPUBLICANS EXPRESS DEGREES OF CONCILIATION TOWARD THE HEALTHCARE PROPOSALS BUT THERE ARE DISSENTERS DURING MR CLINTON'S TELEVISED SPEECH TO CONGRESS ON HEALTH TWO JUNIOR GOP LEADERS WHO ARE EACH MENTIONED AS POTENTIAL CONTENDERS FOR HIGHERRUNG JOBS TEXAS REPS RICHARD ARMEY AND TOM DELAY REMAINED SEATED TOGETHER EVEN DURING BURSTS OF BIPARTISAN APPLAUSE MR DELAY COULD BE SEEN SAYING NO WAY AND WAVING HIS HAND DISMISSIVELY AT TIMES BUT IT'S LESS THE BROAD POLICIES THAT DRIVE MANY REPUBLICANS THAN THE DAILY WORKINGS OF THE HOUSE JUST AS MR GINGRICH MADE HIS MARK SPOTLIGHTING DEMOCRATIC SCANDALS ARGUABLY BRINGING DOWN FORMER SPEAKER JIM WRIGHT AND CONDEMNING CONGRESS IN THE BLUNTEST TERMS HIS FOLLOWERS FOCUS ON ETHICS CASES PERKS AND ARCANE HOUSE RULES IN RECENT DAYS TWO OF THE MOST PUGNACIOUS AMONG THEETED COMMERCE SECRETARY RONALD BROWN TRUMPETING ASYET UNSUBSTANTIATED ALLEGATIONS THAT HE SOUGHT MONEY TO HELP OPEN USVIETNAMESE TRADE RELATIONS EARLIER SOME PRESSED TO INVESTIGATE THE SUICIDE OF CLINTON AIDE VINCE FOSTER DEMOCRATS HAVE LONG COMPLAINED ABOUT HOUSE REPUBLICANS' OBSTRUCTIONISM AND NOW RECENT POLLS SHOW MUCH OF THE PUBLIC IS DOING THE SAME EVEN FORMER REP VIN WEBER A CLOSE ADVISER TO MR GINGRICH SAYS PERKHUNTING AND SEARCHING FOR SCALPS ON ETHICS ISSUES ARE ALL SECONDARY YOU CAN'T WIN A MAJORITY ON THOSE THINGS YOU CAN WIN A TACTICAL VICTORY BUT THE PUBLIC IS GOING TO ELECT A MAJORITY BASED ON THE ISSUES THAT ARE IMPORTANT TO THEM IN THEIR LIVES BUT FRESHMAN GOP REP ERNEST ISTOOK OF OKLAHOMA RETORTS IF YOU ENCOUNTER SOMEONE WHO'S TRYING TO ROB A STORE THE ROBBER MAY CONSIDER YOU OBSTRUCTIVE BUT THE VICTIM DOESN'T SEE RELATED LETTERS LETTERS TO THE EDITOR I'M NIHILISTIC CHECK YOUR WEBSTER'S WSJ OCT 26 1993 9310050062 YY93 MM10 9310260144 931026 INTERNATIONAL INDONESIA EASES INVESTMENT LIMITS TO DRAW OUTSIDERS BY RICHARD BORSUK STAFF REPORTER OF THE WALL STREET JOURNAL JAKARTA INDONESIA INDONESIA RELAXED RESTRICTIONS ON FOREIGN OWNERSHIP OF NEW MANUFACTURING OPERATIONS AS PART OF ITS SECOND ECONOMIC REFORM PACKAGE IN THE PAST FOUR MONTHS THE LATEST PACKAGE WHICH ALSO INCLUDES TARIFF CUTS SHOULD PLEASE FOREIGN BUSINESSPEOPLE MORE THAN THE PRIOR ONE WIDELY REGARDED AS A DISAPPOINTMENT BUT IT IS UNCLEAR WHETHER THE NEW MEASURES WILL BE ENOUGH TO REVERSE A DECLINE IN APPLICATIONS FOR FOREIGNINVESTMENT PROJECTS UNDER THE LATEST PLAN FOREIGN INVESTORS IN COMPANIES THAT MAKE COMPONENTS OR INTERMEDIATE GOODS WILL BE ALLOWED TO REMAIN SOLE OWNERS FOR 10 YEARS IF AT LEAST 2 MILLION OF EQUITY IS INVESTED PREVIOUSLY FOREIGN INVESTORS GENERALLY COULD HOLD A 100 STAKE IN SUCH A VENTURE ONLY IF THE INITIAL EQUITY INVESTMENT TOTALED AT LEAST 50 MILLION BUT REQUIREMENTS FOR EVENTUAL DIVESTITURES BECAME TOUGHER IN BONDED ZONES WHERE MANUFACTURERS PRODUCING FOR EXPORT CAN GET EXEMPTIONS FROM IMPORT DUTIES FOREIGN INVESTORS THAT EXPORT ALL OF THEIR PRODUCTION WILL HAVE TO DIVEST THEMSELVES OF 20 WITHIN 20 YEARS INSTEAD OF JUST 5 AT PRESENT INVESTORS OUTSIDE SUCH ZONES WILL HAVE TO REDUCE THEIR OWNERSHIP TO 49 AFTER 20 YEARS INSTEAD OF 80 THE GOVERNMENT POINTED TO OTHER PLUSES IN THE PACKAGE IT SAID IMPORT TARIFFS ON 36 IRON AND STEEL ITEMS HAVE BEEN CUT OR ABOLISHED AND TARIFFS ON 45 ELECTRONIC COMPONENTS HAVE BEEN ELIMINATED IN ADDITION IT SAID THE PROCEDURES FOR GETTING CERTAIN BUILDING PERMITS WILL BE DRASTICALLY SIMPLIFIED SALEH AFIFF A GOVERNMENT ECONOMIC COORDINATING MINISTER SAID THE PACKAGE IS INTENDED TO RAISE EFFICIENCY AND IMPROVE INDONESIA'S COMPETITIVE EDGE IN ATTRACTING FOREIGN INVESTORS ALTHOUGH INDONESIA'S ECONOMY IS EXPECTED TO GROW ABOUT 7 THIS YEAR FOREIGN INVESTMENT APPROVALS HAVE DECLINED IN THE FIRST 8 1/2 MONTHS OF THIS YEAR THE GOVERNMENT APPROVED FOREIGN INVESTMENT PROJECTS TOTALING 55 BILLION DOWN 29 FROM THE YEAREARLIER PERIOD ANALYSTS BLAME THE FALL ON COMPETITION FROM OTHER COUNTRIES RECESSION IN DEVELOPED NATIONS AND THE DIFFICULTIES OF SETTING UP BUSINESSES IN INDONESIA AS EXPECTED THE NEW PACKAGE DIDN'T OFFER INVESTORS ANY SPECIAL TAX BREAKS NOR DID IT ELIMINATE THE REQUIREMENT THAT PRESIDENT SUHARTO MUST PERSONALLY APPROVE EVERY INVESTMENT APPLICATION NO MATTER HOW SMALL A RULE SOMETIMES BLAMED FOR DELAYING PROJECTS 9310260142 931026 MEMBERS SERVICE CORP FINANCING WINTER PARK FLA MEMBERS SERVICE CORP HAS OBTAINED A COMMITMENT FOR 11 MILLION IN FINANCING IN THE FORM OF A FIRST MORTGAGE FROM KENNEDY FUNDING INC TO ENABLE IT TO COMPLETE ITS ACQUISITION OF THE CHAPARRAL HOTEL AND CASINO IN LAS VEGAS MEMBERS SAID IT HAS PAID 400000 TO BANK OF AMERICA AS THE BALANCE OF ITS DEPOSIT ON ITS PURCHASE OF THE PROPERTY THE CHAPARRAL HOTEL IS A 310ROOM FACILITY WHICH HAS 63000 SQUARE FEET OF CASINO FLOOR SPACE 9310260141 931026 DIAL PAGE INC TO ACQUIRE UNIT GREENVILLE SC DIAL PAGE INC A PAGINGSERVICE PROVIDER SAID IT HAS AGREED TO ACQUIRE A SPECIALIZED MOBILERADIO SYSTEM FROM ADVANCED RADIO COMMUNICATIONS SERVICES OF FLORIDA INC FOR 70 MILLION DIAL PAGE PROVIDES PAGING AND MESSAGING SERVICES THROUGHOUT THE SOUTHEASTERN US AND AFTER THE COMPLETION OF THIS ACQUISITION WILL HAVE ABOUT 400000 WIRELESS CUSTOMERS 9310260140 931026 FED ISSUES WARNING OF BOGUS BANK NOTES AIMED AT INSTITUTIONS WASHINGTON THE FEDERAL RESERVE WARNED FINANCIAL INSTITUTIONS OF AN INCREASE IN THE OFFERING OF FAKE PRIME BANK NOTES AND OTHER QUESTIONABLE FINANCIAL INSTRUMENTS THE WARNING IS A SIGNAL THAT US AUTHORITIES ARE STEPPING UP EFFORTS TO CURB WHAT APPEAR TO BE SCHEMES AIMED AT INSTITUTIONAL INVESTORS ACCORDING TO DOCUMENTS PURPORTING TO OFFER NOTES BACKED BY THE WORLD BANK INVESTORS ARE ENCOURAGED TO MAKE MINIMUM INVESTMENTS OF 10 MILLION TO 20 MILLION WITH THE PROSPECTS OF ANNUAL YIELDS EXCEEDING 150 THE FED NOTED THAT A PROLIFERATION OF ILLEGAL OR DUBIOUS SCHEMES HAS BEEN BROUGHT TO THE ATTENTION OF REGULATORY AND LAWENFORCEMENT AUTHORITIES WHILE THE INSTRUMENTS TAKE VARIOUS FORMS A COMMON THREAD IS A HIGH YIELD GUARANTEED BY A PROMINENT INSTITUTION SUCH AS THE WORLD BANK OR A NATION'S CENTRAL BANK OTHER SCHEMES ALSO INVOLVE ADVANCE LOAN FEE PAYMENTS THE MULTIMILLIONDOLLAR OFFERINGS WHICH SURFACED IN WASHINGTON STATE TEXAS AND NEW YORK ACCORDING TO INFORMATION FROM THE WORLD BANK PROMPTED THE BANK TO WARN THE US TREASURY AND THE SECURITIES AND EXCHANGE COMMISSION IN JUNE ABOUT THEIR EXISTENCE WORLD BANK OFFICIALS SAY THE BOGUS OFFERINGS ARE THE FIRST INVOLVING THAT INSTITUTION TO THEIR KNOWLEDGE THEY ALSO SAID IT APPEARS THE OPERATORS ARE TARGETING FUND MANAGERS AND OTHER INSTITUTIONAL INVESTORS RATHER THAN INDIVIDUALS US AUTHORITIES DECLINED TO COMMENT OTHER THAN TO CONFIRM THAT AN INVESTIGATION INTO THE BOGUS OFFERINGS RELATED TO THE WORLD BANK IS UNDER WAY 9310260139 931026 TECHNOLOGY & SCIENCE AIDS RESEARCHERS DISCOVER DOOR' HIV USES TO ENTER CELLS PARIS AP FRENCH RESEARCHERS SAID THEY DISCOVERED THE MAIN GATEWAY THROUGH WHICH THE HUMAN IMMUNODEFICIENCY VIRUS OR HIV ENTERS AND INFECTS HUMAN CELLS CAUSING AIDS JEANPAUL LEVY HEAD OF FRANCE'S NATIONAL AIDS RESEARCH CENTER SAID THE FINDINGS COULD LEAD TO A VACCINE THAT COULD LOCK OUT ALL HIV STRAINS THE PASTEUR INSTITUTE TEAM SAID IT HAS DISCOVERED A MOLECULE NAMED CD26 USED BY ALL STRAINS TO PENETRATE ITS HUMAN HOSTS RESEARCHERS OF AIDS OR ACQUIRED IMMUNE DEFICIENCY SYNDROME LONG HAVE KNOWN THAT THE VIRUS LATCHES ONTO A RECEPTOR MOLECULE CALLED CD4 ON THE SURFACE OF SOME BLOOD CELLS BUT WE DIDN'T KNOW HOW THE VIRUS GOT INSIDE THE CELL TO CONTAMINATE IT SAID ARA HOVANESSIAN WHO HEADED PASTEUR'S RESEARCH TEAM NOW WE KNOW THAT BOTH THE CD4 AND THE CD26 ARE NECESSARY FOR THE VIRUS TO PENETRATE AND INFECT THE CELL THE PRESENCE AND FUNCTIONING OF THE CD26 MOLECULE ARE INDISPENSABLE FOR THE INFECTION AND SPREAD OF THE VIRUS IN THE CD4 CELLS THE PASTEUR INSTITUTE SAID IN A STATEMENT IN VIRAL INFECTIONS THE CD4 SERVES AS THE CONTACT POINT FOR VIRAL PARTICLES WHILE CD26 SERVES AS THE MAIN DOOR THE AIDS VIRUS HAS ALWAYS MANAGED TO HAVE THE KEY TO OPEN THE CD4 RECEPTORLOCK WE HOPE TO BE ABLE TO DEVELOP DRUGS CAPABLE OF JAMMING THE CD26 LOCK SO THAT THE AIDS KEY WILL NO LONGER FIT DR HOVANESSIAN SAID SINCE EVERY STRAIN OF HIV USED CD26 TO INFECT CELLS HE ADDED WE'RE HOPING TO DEVELOP A UNIVERSAL VACCINE 9310260138 931026 COMPUTER MARKETPLACE PACT CORONA CALIF COMPUTER MARKETPLACE INC AGREED IN PRINCIPLE TO ACQUIRE CERTAIN ASSETS OF INTERNATIONAL COMPUTER SALES ORANGE CALIF COMPUTER MARKETPLACE SAID THE TRANSACTION IS EXPECTED TO CLOSE SHORTLY AFTER THE COMPANIES REACH A DEFINITIVE AGREEMENT 9310260137 931026 WHO'S NEWS HOOK SUPERX'S MOORE RESIGNS CINCINNATI HOOK SUPERX INC SAID MICHAEL C MOORE THE COMPANY'S CHIEF OPERATING OFFICER RESIGNED TO PURSUE OTHER BUSINESS INTERESTS THE COMPANY SAID IN A STATEMENT THAT IT DOESN'T EXPECT TO NAME A SUCCESSOR IN THE FORESEEABLE FUTURE TO MR MOORE WHO JOINED THE DRUGSTORE CHAIN IN 1991 COMPANY OFFICIALS AND MR MOORE COULDN'T BE REACHED FOR COMMENT AS OPERATING CHIEF MR MOORE HAD BEEN RESPONSIBLE FOR OVERSEEING THE AREAS OF STORE OPERATIONS PHARMACY SERVICES AND MARKETING PEOPLE RESPONSIBLE FOR THOSE AREAS WILL NOW REPORT TO PHILIP E BEEKMAN THE COMPANY'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER 9310260136 931026 ARCO'S EARNINGS DROPPED BY 80 IN THIRD PERIOD GAS AND OIL REORGANIZATION TO CUT 1000 WORKERS CLOSE OFFICE IN DALLAS BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES ATLANTIC RICHFIELD CO POSTED SHARPLY LOWER THIRDQUARTER EARNINGS AND ANNOUNCED PLANS TO ELIMINATE 1000 JOBS AND CLOSE ITS DALLAS OFFICE AS PART OF A MAJOR REORGANIZATION OF ITS DOMESTIC OIL AND GAS OPERATIONS OUTSIDE ALASKA ARCO ALSO PLANS TO CURTAIL ITS FUTURE US OIL EXPLORATION IN THE 48 CONTIGUOUS STATES AND CONCENTRATE INSTEAD ON FINDING NATURAL GAS THAT DECISION REPRESENTS A SIGNIFICANT CHANGE IN ARCO'S STRATEGY ANALYSTS SAID NET INCOME FELL 80 TO 68 MILLION OR 42 CENTS A SHARE AFTER 115 MILLION OF CHARGES RELATED MAINLY TO HIGHER TAXES AND AN ADVERSE LEGAL JUDGMENT ANALYSTS CALCULATED THAT OPERATING PROFIT HURT BY LOWER OIL PRODUCTION AND PRICES SLUMPED 45 IN THE YEAREARLIER QUARTER NET WAS 332 MILLION OR 206 A SHARE REVENUE SLID 57 TO 455 BILLION FROM 483 BILLION THE REORGANIZATION OF OIL AND GAS OPERATIONS WILL RESULT IN A SUBSTANTIAL FOURTHQUARTER CHARGE AGAINST EARNINGS TO REFLECT SEVERANCE CHARGES ASSET WRITEDOWNS AND PROPERTY DISPOSITIONS ARCO SAID THE COMPANY SAID IT HASN'T YET DETERMINED THE AMOUNT OF THE CHARGE INVESTORS REACTED FAVORABLY TO THE ANNOUNCEMENT PUSHING ARCO SHARES UP 225 TO 113 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ARCO SAID IT EXPECTS ANNUAL COST SAVINGS OF 100 MILLION FROM THE DISSOLUTION OF ITS ARCO OIL & GAS CO SUBSIDIARY IN ITS PLACE FOUR SEPARATE BUSINESS UNITS REPORTING TO AN EXECUTIVE VICE PRESIDENT AT THE LOS ANGELES HEADQUARTERS WILL BE SET UP FROM CONTINUING OPERATIONS IN HOUSTON MIDLAND TEXAS BAKERSFIELD CALIF AND LONG BEACH CALIF UP TO 1000 JOBS WILL BE CUT ACCOUNTING FOR MORE THAN A THIRD OF THE SUBSIDIARY'S TOTAL EMPLOYMENT MOST OF THE JOB LOSSES WILL COME BY THE MIDDLE OF NEXT YEAR AT THE SUBSIDIARY'S DALLAS HEADQUARTERS ARCO SAID IT PLANS TO VACATE ITS DOWNTOWN DALLAS HIGHRISE OFFICE BUILDING WHICH HAS BEEN UP FOR SALE FOR SOMETIME ARCO EMPLOYS ABOUT 26000 PEOPLE WORLDWIDE THE DECISION TO ELIMINATE ARCO OIL & GAS IS A LOGICAL EXTENSION OF STEPS TAKEN TWO YEARS AGO TO CUT COSTS SAID SPOKESMAN ALBERT GREENSTEIN OVER THE YEARS OUR PERBARREL COST OF PRODUCTION HAS BEEN MOVING TOWARD THE HIGH END WE WANT TO REVERSE THAT TO BECOME ONE OF THE LOWESTCOST PRODUCERS ARCO ISN'T BACKING AWAY FROM DOMESTIC OPERATIONS MR GREENSTEIN SAID OUR COMBINED CAPITAL SPENDING FOR THE FOUR UNITS WILL BE GREATER BUT THE FOCUS WILL BE ON GAS RATHER THAN OIL HE COULDN'T PROVIDE SPECIFIC SPENDING ESTIMATES THE DECISION TO REFOCUS EXPLORATION EFFORTS ON NATURAL GAS SURPRISED SOME ANALYSTS ARCO WITH MUCH FANFARE THREW IN THE TOWEL ON NATURAL GAS IN APRIL 1992 JUST AS THE BUSINESS WAS BOTTOMING IN HINDSIGHT THAT PROVED TO BE A MISTAKE SAID MICHAEL YOUNG AN ANALYST AT SMITH BARNEY SHEARSON MR YOUNG SAID ARCO'S THIRDQUARTER RESULTS WERE UNACCEPTABLY LOW VISAVIS WHAT OTHER OIL COMPANIES HAVE BEEN REPORTING THIS IS CLEARLY WHAT IS DRIVING THE RESTRUCTURING ACTION HE ADDED ARCO'S PERFORMANCE IS MORE CLOSELY TIED TO CRUDEOIL PRICES THAN OTHER COMPANIES ANALYSTS SAID ARCO'S DOMESTIC CRUDE PRICES WERE NEARLY 25 LOWER THAN LAST YEAR VOLUMES OF DOMESTIC OIL AND GAS WERE LOWER BECAUSE OF PROPERTY SALES AND NATURAL FIELD DECLINES ESPECIALLY IN ALASKA A STRONG PERFORMANCE IN REFINING AND MARKETING OPERATIONS WAS ONE BRIGHT SPOT ANALYSTS SAID PERSHARE OPERATING PROFIT FELL TO 113 FROM 206 IN THE COMPARABLE QUARTER MR YOUNG SAID THE RESULTS FOR THE LATEST QUARTER INCLUDED A CHARGE WHICH HE ESTIMATED AT 30 MILLION FOR WELLS DRILLED IN ALASKA'S BEAUFORT SEA ARCO SAID RECENTLY THAT OIL FOUND THERE WASN'T SUFFICIENT FOR A STANDALONE DEVELOPMENT THE ONETIME CHARGES INCLUDED 50 MILLION TO PAY A JULY 1992 LEGAL JUDGMENT A FEDERAL JURY IN SAN JOSE CALIF ORDERED ARCO TO PAY 228 MILLION PLUS INTEREST IN A CLASSACTION SUIT THAT CHARGED THE COMPANY WITH VIOLATING PETROLEUM PRICE CONTROLS BETWEEN 1976 AND 1981 THE JUDGMENT RECENTLY WAS AFFIRMED BY THE US COURT OF APPEALS FOR THE FEDERAL CIRCUIT IN WASHINGTON THE COMPANY HAS ASKED FOR A REHEARING 9310260134 931026 DENVER'S MAYOR WEBB POSTPONES OPENING INTERNATIONAL AIRPORT DENVER THE OPENING OF THE NEW DENVER INTERNATIONAL AIRPORT WILL BE POSTPONED UNTIL MARCH 9 DENVER MAYOR WELLINGTON WEBB DECIDED IN A NEWS CONFERENCE AFTER A MEETING WITH AIRPORT STAFF AND CITY COUNCIL MEMBERS MR WEBB SAID HE HAD PREFERRED TO OPEN THE AIRPORT ON MARCH 2 INSTEAD OF DEC 19 AS SCHEDULED BUT WAS CONVINCED BY COUNCIL ARGUMENTS TO BUILD IN A LITTLE MORE CUSHION SPECULATION ABOUT A DELAY IN OPENING THE 31 BILLION PROJECT HAD SURFACED OVER THE PAST FEW WEEKS AS IT BECAME CLEAR THAT KEY PARTS OF THE AIRPORT WOULDN'T BE READY IN DECEMBER AMONG THOSE WERE THE AUTOMATED BAGGAGE SYSTEM AND FIRE AND SECURITY SYSTEMS THE AIRLINES HAD ALSO COMPLAINED THAT THEY WOULDN'T HAVE ENOUGH TIME BY DEC 19 TO TRAIN THEIR WORK FORCES TO OPERATE THE SYSTEMS IN THE NEW AIRPORT MR WEBB SAID THE LEASES DENVER INTERNATIONAL AIRPORT HAS WITH ITS TWO HUB AIRLINES CALL FOR THEM TO PAY THE INTEREST CHARGES BEGINNING JAN 1 WHETHER THE AIRPORT IS OPEN OR NOT IN ADDITION OTHER COSTS OF DELAY WILL SIMPLY BE ADDED TO THE RATES AND FEES CHARGED TO ALL AIRLINES USING THE NEW AIRPORT HE SAID TO COVER THOSE COSTS BEFORE THE AIRLINES CAN BE CHARGED THE AIRPORT ADMINISTRATION WILL USE PROCEEDS RAISED IN OLD STAPLETON INTERNATIONAL AIRPORT ISSUES THAT HAVEN'T BEEN USED AIRPORT OFFICIALS SAID 9310260133 931026 FORT HOWARD CORP TAKES A WRITEOFF TOTALING NEARLY 2 BILLION IN GOODWILL BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL FORT HOWARD CORP WHICH WENT PRIVATE IN LATE 1988 THROUGH A 37 BILLION LEVERAGED BUYOUT LED BY MORGAN STANLEY GROUP INC WROTE OFF NEARLY 2 BILLION OF GOODWILL THE DEBTHEAVY TISSUEPRODUCTS CONCERN EMPHASIZED THAT DESPITE THE BIG CHARGE IT EXPECTS TO CONTINUE SERVICING ITS DEBT AND FUNDING CAPITAL PROJECTS AND SAID NEITHER OPERATIONS NOR EMPLOYMENT LEVELS WILL BE AFFECTED THE WRITEOFF NEVERTHELESS UNDERSCORES HOW RICH A PREMIUM THE BUYERS IN THE FORT HOWARD LBO PAID JUST AS MUCH OF THE PAPER INDUSTRY WAS MOVING TOWARD A PUNISHING DECLINE MORGAN STANLEY STILL HOLDS A CONTROLLING STAKE AND ITS REPRESENTATIVES HOLD FOUR OF THE SEVEN SEATS ON FORT HOWARD'S BOARD THE GIANT PAPER CONCERN HAD WARNED IN SECURITIES AND EXCHANGE COMMISSION FILINGS EARLIER THIS YEAR THAT IT WAS WEIGHING SUCH AN ACTION BEFORE THE END OF THE YEAR UNLESS THE INDUSTRY'S CYCLICAL DOWNTURN OF YEARS BEGAN TO RELENT THE 198 BILLION GOODWILL PROVISION GAVE FORT HOWARD A THIRDQUARTER LOSS OF 199 BILLION THAT COMPARED WITH AN 115 MILLION NET LOSS IN THE YEARBEFORE QUARTER SALES WERE NEARLY FLAT AT 3086 MILLION COMPARED WITH THE 1992 PERIOD'S 3077 MILLION SHAREHOLDER EQUITY AT THE BIG PAPER COMPANY WAS ALREADY NEGATIVE AND THE BIG THIRDQUARTER WRITEOFF PUSHED EQUITY AT SEPT 30 TO A NEGATIVE 207 BILLION IN ACQUISITION ACCOUNTING GOODWILL IS THE DIFFERENCE BETWEEN THE PURCHASE PRICE OF A GOING CONCERN AND WHAT THE ASSETS OF THE OPERATION WOULD YIELD IN A LIQUIDATION IT ENCOMPASSES SUCH THINGS AS THE VALUE OF A BUSINESS NAME GOOD CUSTOMER RELATIONS AND OTHER FACTORS THAT MAKE A COMPANY WORTH MORE THAN THE SUM OF ITS ASSETS AS AN INTANGIBLE GOODWILL IS GENERALLY WRITTEN OFF OVER DECADES SINCE THE 1988 BUYOUT FORT HOWARD WHICH EXPECTED TO AMORTIZE THE GOODWILL OVER 35 YEARS HAD WRITTEN DOWN SLIGHTLY MORE THAN 300 MILLION IN GOODWILL BUT IT SAID IN DISCLOSING ITS THIRDQUARTER FIGURES THAT IT HAD CONCLUDED PROJECTED RESULTS WILL NOT SUPPORT THE FUTURE AMORTIZATION OF ITS REMAINING GOODWILL BALANCE FORT HOWARD BLAMED NEGATIVE INDUSTRY CONDITIONS INCLUDING PROFITMARGIN PRESSURE FROM FALLING PRICES AND AGGRESSIVE COMPETITION AS WELL AS EXCESS INDUSTRY CAPACITY FACTORS EXACERBATED BY THE CONTINUED SLACK ECONOMY STANDARD & POOR'S CORP REACTED TO THE NEWS BY AFFIRMING ITS RATINGS ON FORT HOWARD'S ABOUT 3 BILLION IN DEBT WHILE THE GREEN BAY WIS COMPANY'S EQUITY WILL BE SUBSTANTIALLY REDUCED S&P NOTED CASHFLOW PROTECTION ALTHOUGH THIN WON'T BE CHANGED AND THE WRITEOFF DOESN'T PUT THE COMPANY IN VIOLATION OF ANY BORROWING ARRANGEMENTS WITH BANKERS OR ITS PUBLICLY TRADED DEBT FORT HOWARD'S SENIOR SECURED DEBT IS RATED DOUBLEBMINUS BY S&P WHILE ITS SENIOR UNSECURED DEBT IS RATED SINGLEBPLUS AND ITS SUBORDINATED DEBT CARRIES A SINGLEB RATING S&P CALLED FORT HOWARD'S RATINGS OUTLOOK POSITIVE WHILE NO DELEVERAGING OF THE COMPANY'S BALANCE SHEET APPEARS LIKELY ABSENT A LARGE EQUITY OFFERING S&P SAID GROWTH IN OPERATING CASH FLOW AS THE ECONOMY RECOVERS COULD RESULT IN A MODEST RATINGS UPGRADE IN THE NEXT THREE YEARS ASKED IF THE COMPANY WAS CLEANING ITS BALANCE SHEET IN PREPARATION FOR AN INITIAL PUBLIC OFFERING A SPOKESMAN FOR FORT HOWARD SAID IT HAS NO IMMINENT PLANS FOR AN IPO 9310260132 931026 ENTERPRISE BALLOT BATTLES OVER TAXES BLUE LAWS RALLY SMALLBUSINESS OWNERS BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL SMALL BUSINESSES ARE FIGHTING FOR A TAX REPEAL IN WASHINGTON STATE NEXT WEEK AND AGAINST ONE IN COLORADO IN SUBURBAN NEW JERSEY MOMANDPOP RETAILERS WHO HAVE OFTEN COMPLAINED ABOUT OVERREGULATION ARE TRYING TO PRESERVE ONE OF THE MOST RESTRICTIVE SUNDAYCLOSING LAWS IN THE COUNTRY HOT BATTLES OVER BALLOT ISSUES TEND TO OCCUR IN EVENNUMBERED YEARS WHEN VOTERS ELECT PRESIDENTS AND MEMBERS OF CONGRESS BUT IN THIS ODD YEAR A NUMBER OF FIGHTS HAVE EXCITED SMALL BUSINESS NATIONWIDE INDEED SMALLBUSINESS OWNERS ARE THE MOVERS AND SHAKERS BEHIND SOME HERE ARE SOME OF THE CONTESTS SMALL BUSINESS IS WATCHING AND JOINING STORE OWNERS IN AFFLUENT BERGEN COUNTY IN NORTHERN NEW JERSEY NEAR NEW YORK CITY ARE URGING VOTERS TO LET THEM KEEP THEIR DAY OF REST BLUE LAWS THE RESTRICTIONS ON SUNDAY SHOPPING THAT ORIGINATED WITH THE PILGRIMS HAVE ALL BUT DISAPPEARED FROM MOST OF THE LAND MASSACHUSETTS ONCE ONE OF THE STRICTEST STATES ABOUT SUNDAY SHOPPING RELAXED ITS LAWS IN THE 1980S TO PERMIT STORES TO OPEN AT NOON ON SUNDAY AND HAS CHIPPED AWAY AT OTHER RESTRICTIONS BUT BERGEN COUNTY HOME OF SEVERAL GIANT SHOPPING MALLS HAS CLUNG TO A SUNDAY BAN ON SELLING CLOTHES FURNITURE APPLIANCES JEWELRY HOMEIMPROVEMENT PRODUCTS AND CERTAIN OTHER GOODS EVEN AS THE STATE'S 20 OTHER COUNTIES HAVE SHED SUCH LAWS CERTAIN NECESSITIES SUCH AS FOOD ARE EXEMPT NOW RESIDENTS WILL VOTE ON A MEASURE BACKED BY LARGE RETAILERS AND OTHER BUSINESSES TO KILL THE BLUE LAWS PASSIONS RUN HIGH RECENT OPINION POLLS IN THE LOCAL NEWSPAPER THE RECORD SHOW THAT A MUCH HIGHER SHARE OF BERGEN COUNTY RESIDENTS FEEL STRONGLY ABOUT THE FATE OF THE BLUE LAWS THAN NEW JERSEYANS IN GENERAL FEEL ABOUT THE OUTCOME OF THE GOVERNOR'S RACE ONE POLL SHOWED VOTERS NARROWLY BACKING THE BLUE LAWS THE MEASURE'S SUPPORTERS SAY ENDING THE BAN WOULD BOOST THE LOCAL ECONOMY AND HELP SHOPPERS ESPECIALLY WORKING COUPLES OPPONENTS FEAR INCREASED SUNDAY TRAFFIC NOISE AND CRIME IN NEW JERSEY'S MOST POPULATED COUNTY WITH 825000 PEOPLE AND SMALLBUSINESS OWNERS WORRY THAT THE COST OF STAYING OPEN AN EXTRA DAY TO COMPETE WITH THE MALLS WOULD HURT THEIR THIN PROFIT MARGINS STAYING CLOSED WHEN MALLS WERE HUMMING COULD BE RISKY TOO EVEN A LOYAL CUSTOMER MIGHT STRAY MAYBE FOR JUST ONE PURCHASE MAYBE FOR GOOD SAYS DAVE LINDEN PRESIDENT OF THE HACKENSACK CHAMBER OF COMMERCE AND OWNER OF LOWITS MEN'S STORE IN THAT CITY THIS ISN'T THE FIRST TIME THE QUESTION HAS COME BEFORE COUNTY VOTERS WHO DEFEATED A SIMILAR EFFORT IN 1980 IF THE RESTRICTIONS SURVIVE THIS TIME AROUND BERGEN COUNTY PROBABLY WILL BE THE LAST MAJOR MARKET THAT SHUTS ALMOST EVERYTHING ALL DAY LONG SAYS JON HURST PRESIDENT OF THE RETAILERS ASSOCIATION OF MASSITORS BLUE LAWS NATIONWIDE SMALL BUSINESS IS GIVING FIREPOWER TO A TAX REVOLT IN THIS STATE AN INITIATIVE CALLED 602 WOULD REPEAL MOST OF THE 12 BILLION IN NEW TAXES AND FEES APPROVED BY THE 1993 LEGISLATURE THE ASSOCIATION OF WASHINGTON BUSINESS DRAFTED THE LANGUAGE THAT SERVED AS A MODEL FOR 602 THE PROPOSAL ALSO WOULD REQUIRE THE ASSENT OF 60 OF BOTH HOUSES TO ENACT TAXES AS WELL AS HOLD GOVERNMENT SPENDING INCREASES TO THE RATE OF ECONOMIC GROWTH IT ALSO WOULD BAR STATE LAWMAKERS FROM COMPELLING LOCALITIES TO FINANCE NEW STATE PROJECTS TOM DOOLEY VICE PRESIDENT OF THE BUSINESS GROUP SAYS 98 OF HIS GROUP'S 3200 MOSTLY SMALLBUSINESS MEMBERS FAVOR THE INITIATIVE MANY OTHER SMALLBUSINESS GROUPS HAVE ENDORSED IT AND SOME ARE CAMPAIGNING FOR ITS PASSAGE MOST BIG CORPORATIONS HAVE DECLARED NEUTRALITY SMALL BUSINESS IS THE BACKBONE OF 602 SAYS MARJORIE HUFAULT CAMPAIGN COORDINATOR FOR THE COMMITTEE TO LIMIT TAXES NOW WHICH IS SPONSORING THE INITIATIVE SMALL BUSINESSES ARE FED UP WITH NEW TAXES SHE SAYS OPPONENTS SAY A TAX ROLLBACK WOULD DEVASTATE THE SCHOOL SYSTEM AND SOCIAL SERVICES OUR QUALITY OF LIFE OUR INFRASTRUCTURE OUR CLEAN ENVIRONMENT ALL THESE WOULD BE ON THE CHOPPING BLOCK IF THIS PASSES SAYS JORDAN DEY SPOKESMAN FOR DEMOCRATIC GOV MIKE LOWRY WHO PUSHED FOR THE INCREASES AFTER TAKING OFFICE THIS YEAR ONE RECENT OPINION POLL SHOWED THAT VOTERS WHO HAVE TAKEN SIDES FAVOR THE INITIATIVE 3 TO 2 BUT THE GOVERNOR'S SPOKESMAN SAYS THE GAP IS NARROWING IF WASHINGTON BUSINESSES HATE THEIR TAXES MANY COLORADO RETAILERS HAVE ONE THEY LOVE VOTERS WILL DECIDE WHETHER TO EXTEND A 02 SALES TAX ON HOTELS RESTAURANTS BARS AND OTHER FOOD AND ENTERTAINMENT SPOTS PROCEEDS ARE USED TO PROMOTE TOURISM NOT SURPRISINGLY THE TOURISM INDUSTRY SUPPORTS PASSAGE SAYS TOMMY NEAL POLICY SPECIALIST AT THE NATIONAL CONFERENCE OF STATE LEGISLATURES IN DENVER TEXAS SMALL BUSINESSES DON'T WANT TO BE FORCED TO PAY PROPERTY TAXES ON EXPENSIVE POLLUTIONCONTROL DEVICES THAT THE GOVERNMENT FORCES THEM TO BUY PROPOSITION 2 WOULD EXEMPT THAT EQUIPMENT FROM SUCH ASSESSMENTS THE SOARING COST OF COMPLYING WITH FEDERAL AND STATE ENVIRONMENTAL REGULATIONS THREATENS TO BRING TENS OF THOUSANDS OF SMALL TEXAS BUSINESSES TO THEIR FINANCIAL KNEES SAYS THE TEXAS OFFICE OF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS PROPOSITION 2 IS OUR BEST HOPE FOR REDUCING THOSE COSTS THE LOBBYING GROUP SAYS DRY CLEANERS SERVICE STATIONS AUTO GARAGES AND BAKERIES WHICH HAVE HIGH POLLUTIONCONTROL COSTS WOULD BENEFIT MOST FROM TAX RELIEF ALSO IN TEXAS BALLOT ISSUE 1 WOULD PROVIDE FINANCING FOR THE STARTUP COSTS OF BUSINESSES OWNED BY MINORITIES AND WOMEN IT WOULD AMEND THE CONSTITUTION TO AUTHORIZE 50 MILLION IN GENERALOBLIGATION BONDS THE FUNDING WOULD BE IN THE FORM OF LOWINTEREST LOANS NOT HANDOUTS SAYS SEN EDDIE LUCIO JR THE BROWNSVILLE DEMOCRAT WHO WROTE THE MEASURE IT WOULD HELP PEOPLE WHO NEED HELP THE MOST AND WOULD CREATE JOBS 9310260131 931026 POLITICS & POLICY NEW JERSEY GOVERNOR'S RACE FOCUSES ON TAXES AND SPENDING CUTS AMID CYNICAL MOOD OF VOTERS BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WOODBRIDGE NJ HERE IN NEW JERSEY THE NATION'S STARKEST ECONOMIC DEBATE HAS PRETTY MUCH COME DOWN TO AN ARGUMENT OVER ADIDAS SNEAKERS THE DEBATE PITS DEMOCRATIC GOV JIM FLORIO WHO IS RUNNING FOR REELECTION WHILE DEFENDING A MULTIBILLIONDOLLAR TAX INCREASE AGAINST REPUBLICAN CHALLENGER CHRISTINE TODD WHITMAN WHO PROMISES TO ROLL IT BACK WITH A 30 CUT IN INCOME TAXES AGAINST ALL ODDS THE PUGNACIOUS MR FLORIO HOLDS ONTO A SLENDER LEAD IN THE POLLS IN LARGE MEASURE BY CALLING MRS WHITMAN'S TAXCUT PLAN A 15 BILLION FANTASY THAT SHE CAN'T PAY FOR WITH HER VAGUE PROMISES OF SPENDING CUTS AS EVIDENCE HE HAS SEIZED UPON HER SUGGESTION THAT ONE EXAMPLE OF THE SPENDING EXTRAVAGANCE SHE WOULD ELIMINATE IS THE STATE'S PRACTICE OF BUYING PRICEY ADIDAS SNEAKERS FOR PRISON INMATES NOTING SARCASTICALLY THAT IT WILL TAKE A LOT OF SHOE SAVINGS TO OFFSET 15 BILLION IN TAX CUTS MR FLORIO DECLARES THIS IS THE ADIDAS SNEAKER APPROACH TO BALANCING THE BUDGET BESIDES HIS AIDES CONTEND MOST PRISONERS ACTUALLY GET A CUTRATE SHOE NOT A TONY DESIGNER ONE SILLY AS IT MAY SEEM THE SNEAKER DEBATE NEATLY SUMMARIZES BOTH THE TENOR OF THIS TIGHTENING GOVERNOR'S RACE AND THE CYNICAL MOOD OF VOTERS IN 1993 WHEN IT COMES TO GUTLEVEL ISSUES OF TAXES AND SPENDING MR FLORIO A ONETIME HIGHSCHOOL DROPOUT AND FORMER US NAVY BOXER REMAINS A DECIDEDLY UNPOPULAR FIGURE IN HIS OWN STATE LARGELY BECAUSE OF THE 28 BILLION TAX INCREASE HE PUSHED THROUGH SHORTLY AFTER TAKING OFFICE FOUR YEARS AGO YET IN THE WAKE OF FORMER PRESIDENT BUSH'S BROKEN NONEWTAXES PLEDGE AND PRESIDENT CLINTON'S UNMET PLEDGE OF MIDDLECLASS TAX CUTS VOTERS ALSO APPEAR UNPREPARED TO BELIEVE ANY POLITICIAN'S PROMISES TO CUT TAXES OR SLICE INTO SPENDING MRS WHITMAN A WEALTHY FORMER STATE UTILITIES COMMISSIONER WHO NEARLY UPSET SEN BILL BRADLEY IN 1990 HAS FOUND HERSELF IN A NOWIN PREDICAMENT MR FLORIO ALTERNATELY RIDICULES HER FOR FAILING TO GIVE A MORE DETAILED LIST OF THE SPENDING CUTS SHE WOULD MAKE TO PAY FOR HER TAX CUTS OR ATTACKS THE FEW SPECIFICS PRISON SNEAKERS STATE HELICOPTERS SHE OFFERS WHAT FLORIO WANTS AND WHAT CRITICS WANT IS FOR HER TO GIVE THEM A LINEBYLINE LIST OF SPENDING CUTS SO THEY CAN ROAST HER ON EVERY SPECIFIC COMPLAINS LAWRENCE KUDLOW A FORMER REAGAN ADMINISTRATION BUDGET AIDE WHO IS COAUTHOR OF THE WHITMAN TAXCUT PLAN AS A RESULT MR FLORIO HAS GONE SOME DISTANCE IN TRANSFORMING THE GOVERNOR'S RACE FROM A REFERENDUM ON HIM INTO A JUDGMENT ON MRS WHITMAN'S CREDIBILITY ALONG THE WAY HE HAS ALSO TAPPED INTO THE COUNTRY'S RISING CONCERN ABOUT STREET VIOLENCE BY FLAUNTING HIS PRO GUNCONTROL AND WELFAREREFORM POSITIONS AND PAINTING MRS WHITMAN AS SOFT ON CRIME THAT TACTIC ACTUALLY HAS WORKED BEST AT UNDERCUTTING HER SUPPORT AMONG WOMEN WHO ARE A NATURAL BASE OF ALLIES BUT WHO ALSO APPEAR TO BE MORE SENSITIVE TO THE CRIME ISSUE THAN MEN ARE HE PAINTED HER AS THE VIOLENCE QUEEN COMPLAINS MYRA TERRY PRESIDENT OF THE NATIONAL ORGANIZATION FOR WOMEN IN NEW JERSEY AND A WHITMAN SUPPORTER THOSE TACTICS ALLOWED MR FLORIO TO OPEN A WIDE EARLYAUTUMN LEAD IN A RACE HE ONCE WAS CONSIDERED CERTAIN TO LOSE THE WHITMAN CAMPAIGN HAS HAD TO SPEND THE PAST SEVERAL WEEKS WHITTLING AWAY AT THAT LEAD WHICH ONE NEW POLL SHOWS IS DOWN TO FIVE PERCENTAGE POINTS WITH A WEEK TO GO BEFORE ELECTION DAY THE RACE SEEMS LIKELY TO TURN ON WHETHER VOTERS DECIDE TO PASS JUDGMENT ON MR FLORIO'S POPULARITY OR ON MRS WHITMAN'S BELIEVABILITY IT SEEMS TO HAVE BEEN A SHREWD STRATEGY POLLS NOW SUGGEST THAT MRS WHITMAN HAS AN UNFAVORBLE RATING AT LEAST AS HIGH AS THAT OF MR FLORIO WHO ONCE JOKED THAT READING THE BUMPER STICKERS AROUND NEW JERSEY WOULD LEAD ONE TO THINK HIS FIRST NAME WAS DUMP THOSE POLL RATINGS ARE A REMARKABLE STATE OF AFFAIRS PARTICULARLY CONSIDERING ECONOMIC CONDITIONS THAT BY ALL RIGHTS SHOULD HAVE KNOCKED MR FLORIO OUT OF THE RACE BY NOW NEW JERSEY'S UNEMPLOYMENT RATE STANDS AT 77 OF THE WORK FORCE UP SUBSTANTIALLY FROM 46 WHEN MR FLORIO TOOK OFFICE ALL TOLD THERE ARE SOME 200000 FEWER PEOPLE AT WORK IN THE STATE NOW THAN AT THE BEGINNING OF 1990 IN ESSENCE MRS WHITMAN 47 YEARS OLD PROMISES THAT A BIG TAX CUT WILL CHANGE ALL THAT SHE APTLY SUMMED UP HER MESSAGE IN A TWOMINUTE SPEECH TO SUPPORTERS A FEW DAYS AGO AT JERSEY CITY'S LIBERTY STATE PARK WHICH HAS A MAJESTIC VIEW OF NEW YORK CITY'S NEARBY FINANCIAL DISTRICT CAN WE AFFORD FOUR MORE YEARS OF THESE KINDS OF TAXES SHE ASKED MRS WHITMAN HAS PROPOSED CUTTING INCOME TAXES BY 10 A YEAR IN EACH OF THE NEXT THREE YEARS FOR COUPLES WITH TAXABLE INCOMES AS HIGH AS 80000 A YEAR WEALTHIER TAXPAYERS WOULD GET SMALLER TAX CUTS AND SOME LOWINCOME RESIDENTS WOULD SEE THEIR INCOME TAXES ELIMINATED THE WHITMAN PLAN DOESN'T RELY ON A REAGANESQUE SUPPLYSIDE FORMULA OF INCREASED ECONOMIC GROWTH TO GENERATE ENOUGH NEW REVENUE TO MAKE UP FOR THE LOST TAX DOLLARS INSTEAD SHE SAYS SHE WOULD CUT STATE SPENDING BY ENOUGH TO OFFSET THE TAX CUTS SHE PLEDGES TO CAP BUDGET GROWTH TO 3 A YEAR CUT STATE MIDDLEMANAGEMENT EMPLOYEES PRIVATIZE SOME GRNMENT OPERATIONS WHENEVER FEASIBLE AND ELIMINATE UNSPECIFIED WASTE EXTRAVAGANCE AND ABUSE BUT MRS WHITMAN DOESN'T HAVE A REPUTATION AS A RADICAL TAX CUTTER AND SHE DIDN'T LAY OUT HER PLAN UNTIL LATE SEPTEMBER THAT WAS AFTER SHE HAD FRITTERED AWAY THE SUMMER BY ALLOWING THE DEBATE TO SHIFT AWAY FROM THE FLORIO ECONOMIC RECORD AND ONTO HER WEALTH MR FLORIO'S BAN ON SOME SEMIAUTOMATIC WEAPONS AND EVEN HER UNTIMELY SUMMER VACATION HER ADVISERS ACKNOWLEDGE THAT THOSE FACTORS HAVE COMBINED TO MAKE THE TAXCUT PLEDGE APPEAR TO BE A CYNICAL POLITICAL PLOY DESIGNED TO CUT INTO MR FLORIO'S LEAD FOR HIS PART MR FLORIO 56 PORTRAYS HER PLAN AS THE WISHFUL THINKING OF YESTERDAY AND HIS APPROACH AS THE NONONSENSE WAY TO TACKLE THE REAL FISCAL PROBLEMS OF TODAY IT'S THE '80S AGAINST THE '90S SAYS PAUL BEGALA A STRATEGIST NOT ONLY FOR MR FLORIO BUT FOR BILL CLINTON AS WELL MORE POINTEDLY MR FLORIO HAS BEGUN TELLING VOTERS THAT THE WHITMAN TAX CUTS WOULD LEAD DIRECTLY TO INCREASES IN HATED PROPERTY TAXES AS A WAY TO BALANCE THE STATE'S BOOKS THAT HAS ALLOWED HIM TO PULL A ROLE REVERSAL IN WHICH HE IS THE PROPERTYTAX CUTTER AND MRS WHITMAN THE TAX INCREASER MRS WHITMAN IS OFFERING PEOPLE PIE IN THE SKY HE TELLS A GROUP OF SMALLBUSINESS LEADERS HERE SHE'S GOT TO TELL US WHERE THE DOUGH IS GOING TO COME FROM 9310260130 931026 COMARCO'S NEW ARMY CONTRACT ANAHEIM CALIF COMARCO INC UNVEILED A CONTRACT TO CONTINUE PROVIDING CUSTOMER ASSISTANCE SUPPORT TO THE US ARMY IN KOREA IN A STATEMENT COMARCO SAID THIS ONEYEAR CONTRACT WHICH INCLUDES FOUR ONEYEAR OPTIONS IS EXPECTED TO EXPAND AND GENERATE AS MUCH AS 1 MILLION A YEAR IN REVENUE THE COMPANY SAID IT HAS PROVIDED FULLTIME AND ONCALL CUST SUPPORT FOR MORE THAN 500 LOGISTICS SYSTEMS USERS THROUGHOUT KOREA FOR THE PAST FIVE YEARS 9310260129 931026 THE EARLE OF TEXAS BY WILLIAM MURCHISON AUSTIN TEXAS WHY IT WASN'T SO LONG AGO WE TEXANS LET 'EM PUFF A CIGARETTE AND SAY A PRAYER IF THEY WERE THAT SORT THEN WE SLAPPED THE HORSE'S RUMP AND LET 'EM DANGLE FOR THEIR SINS SUCH AS MALAPPROPRIATION OF THE NEXTDOOR NEIGHBOR'S HERD IN TODAY'S TEXAS THERE ARE NEW SINS LIKE POLITICAL DISAGREEMENT AND NEW TECHNIQUES FOR REDRESSING THEM LIKE GRINDING UP THE SUSPECTS IN TRAVIS COUNTY DISTRICT ATTORNEY RONNIE EARLE'S LEGAL MILL THE KAY BAILEY HUTCHISON STINK AND POTHER TEXAS'S NEW REPUBLICAN SENATOR IS STRONGLY CONTESTING HER INDICTMENT FOR ALLEGED MISUSE OF THE STATE TREASURER'S OFFICE FOR PERSONAL AND POLITICAL PURPOSES IS FROM THE SENATOR'S STANDPOINT A NIGHTMARE BUT IT HAS ITS SEASONABLE ASPECTS NONE TOO SOON IT THROWS THE SEARCHLIGHT ON MR EARLE'S VAST POWER LIKEWISE ON HIS MODUS OPERANDI WHICH NEEDS SCRUTINY AND NOT LEAST CHANGE AS STATE PROSECUTOR IN TEXAS'S CAPITAL CITY MR EARLE KEEPS WATCH ON LEGISLATORS AND OFFICEHOLDERS WHO MIGHT BE TEMPTED TO USE THEIR POSITIONS FOR PRIVATE BENEFIT THE PUBLIC INTEGRITY UNIT IN THE TRAVIS COUNTY DISTRICT ATTORNEY'S OFFICE IS PARTLY FUNDED BY THE LEGISLATURE SO FAR SO GOOD FEW TEXANS DENY THAT POLITICIANS NEED CONSTANT WATCHING IF NOT THE OCCASIONAL HORSEWHIPPING TO REMIND THEM WHO'S THE BOSS ON THE OTHER HAND AS A FAMOUS NONTEXAN JUVENAL COGENTLY EXPRESSED IT WHO WATCHES THE WATCHMEN MR EARLE'S JOB CALLS FOR A DELICACY AND IMPARTIALITY OF WHICH HE SEEMS TEMPERAMENTALLY AND PERHAPS POLITICALLY INCAPABLE EVEN WHEN HE'S RIGHT IT'S SOMETIMES EASY TO QUESTION HIS METHODS OR HIS SENSE OF PERSPECTIVE OFTEN THE ACCUSATIONS HIS OFFICE LEVELS SEEM PETTY A REPUBLICAN SUPREME COURT JUSTICE IS CURRENTLY UNDER INVESTIGATION FOR AMONG OTHER THINGS ALLEGEDLY USING A COURT EMPLOYEE TO HELP RESEARCH HIS COLLEGE MASTER'S THESIS NOTE THE JUSTICE'S POLITICAL AFFILIATION THE SAME AS SEN HUTCHISON'S AS SHERLOCK HOLMES MIGHT HAVE SAID HMMM IS RONNIE EARLE A PARTISAN DEMOCRAT VIEWING AND HALLOOING AFTER THE REPUBLICANS IT IS NOT EASY TO BE SURE ABOUT MR EARLE HE IS HARD TO DEFINE FIFTYONE YEARS OLD A GRADUATE OF THE UNIVERSITY OF TEXAS LAW SCHOOL IN THE SAME CLASS AS THE THENKAY BAILEY MR EARLE SERVED TWO YEARS AS A LEGAL ASSISTANT TO CONSERVATIVE DEMOCRATIC GOV JOHN CONNALLY HE BECAME AN AUSTIN MUNICIPAL JUDGE IN 1969 SERVED IN THE TEXAS HOUSE FROM 1973 TO 1976 AGAIN WITH MRS HUTCHISON AND BECAME DA IN 1977 HE ACQUIRED A REPUTATION AS THE HIPPIE DA A LAWYER WHO KNEW HIM THEN SAYS HE READ AND DISCUSSED EVERYTHING FROM PARANORMAL PSYCHOLOGY TO ASTROLOGY TO ALL KINDS OF PSYCHOLOGICAL THEORY FOR HUMAN BEHAVIOR HE IS UNIVERSALLY REGARDED AS A LIBERAL DEMOCRAT MOST OTHER FOLKS IN TRAVIS COUNTY THE SEAT NOT ONLY OF STATE GOVERNMENT BUT ALSO OF THE UNIVERSITY OF TEXAS ARE LIBERAL DEMOCRATS IT IS TEXAS'S OWN BELTWAY A CITY FORTIFIED MENTALLY AT LEAST AGAINST THE DEPREDATIONS OF THE PEASANT TAXPAYERS WHOM THE DEFENDERS SALLY FORTH PERIODICALLY TO LOOT AND PILLAGE MR EARLE BLENDS NICELY INTO THIS EXOTIC SETTING AT THE TRAVIS COUNTY COURTHOUSE MR EARLE CAME TO KNOW WELL ONE OF THE COUNTY COMMISSIONERS ANN RICHARDS THE FUTURE GOVERNOR HERSELF IT IS A CURIOUS THING ABOUT MR EARLE'S PROSECUTIONS ANY NUMBER COULD BE CONSTRUED AS ADVANCING THE FORTUNES OF HIS OLD FRIEND IN 1982 THE DEMOCRATIC STATE TREASURER THE IMPROBABLY NAMED WARREN G HARDING PLEADED GUILTY TO A MISDEMEANOR STEMMING FROM USE OF TREASURY WORKERS IN HIS CAMPAIGN HE QUIT THE RACE MS RICHARDS WON THE POST THE NEXT NOVEMBER THE CONSERVATIVE SPEAKER OF THE HOUSE GIB LEWIS A DEMOCRAT RETIRED AFTER A LEGAL SKIRMISH WITH MR EARLE IN THE MID1980S LIBERAL DEMOCRATIC ATTORNEY GENERAL JIM MATTOX AN OBVIOUS RIVAL TO MS RICHARDS WAS INDICTED BY MR EARLE ON A CHARGE OF COMMERCIAL BRIBERY A JURY REFUSED TO CONVICT HIM TO MR EARLE'S CONSIDERABLE EMBARRASSMENT WHEN LLOYD BENSTEN VACATED HIS SENATE SEAT TO BECOME TREASURY SECRETARY EARLIER THIS YEAR MR EARLE UNSUCCESSFULLY LOBBIED HIS OLD FRIEND THE GOVERNOR TO AWARD HIM THE SEAT THE JOB WENT TO FORMER REP BOB KRUEGER WHOM MRS HUTCHISON DEMOLISHED IN THE RUNOFF PRIMARY THAT PRECEDED BY ONLY FIVE DAYS MR EARLE'S HIGHLY PUBLICIZED RAID ON THE SENATORELECT'S FORMER OFFICE AT THE TREASURY IT BEARS MENTION THAT MR EARLE'S WIFE TWYLA ONCE WORKED FOR MS RICHARDS AT THE TREASURY A CONSPIRACY THEORIST COULD GO WILD IS MR EARLE ANN RICHARDS'S ZEALOUS HATCHETMAN IT IS LIKELY NOT THAT SIMPLE NO ONE I HAVE SPOKEN WITH VIEWS HIM AS A CROOK HE COMMANDS RESPECT AS AN OPPONENT OF CONVENTIONAL CRIME OBSERVERS COMPLIMENT HIS STAFF'S PROFESSIONALISM ON THE OTHER HAND THERE IS THIS BUSINESS OF APPEARANCES TEX LEZAR A REAGAN JUSTICE DEPARTMENT OFFICIAL WHO IS NOW PRESIDENT OF THE TEXAS PUBLIC POLICY FOUNDATION FAULTS MR EARLE FOR SOMETIMES CONFUSING HIS OWN SENSE OF MORALISM AND SENSE OF AMBITION WITH LAW AND LEGALITY FOR ALL OF HIS REPUTED SENSE OF ETHICS HE DOESN'T HAVE A VERY WELLDEVELOPED SENSE OF PERSONAL ETHICS AS IN THE APPEARANCE OF SENSITIVITY TO CONFLICTS OF INTEREST MR LEZAR EXPRESSES THE OPINION OF MANY TEXANS OF BOTH PARTIES WHEN HE SAYS MR EARLE SHOULD HAVE RECUSED HIMSELF IN THE HUTCHISON CASE AND WHAT ABOUT THE GRAND JURY THAT INDICTED THE SENATOR OUT OF 12 JURORS 10 ARE DEMOCRATIC VOTERS ONE CALLS HIMSELF AN INDEPENDENT WITH REPUBLICAN LEANINGS AND THE LAST HASN'T BEEN EXCITED ENOUGH LATELY TO EXERCISE THE FRANCHISE AT ALL IN ERECTING THIS JUDICIAL MONUMENT TO DIVERSITY MR EARLE MANAGED SOMEHOW TO PROCURE THE SERVICES OF AN ACCUSED HOTCHECK WRITER TEXAS LAW ALAS DRAWS THE LINE AT CERTAIN KINDS OF PLURALISM OUT THE WINDOW THE TAINTED INDICTMENT WILL GO POSSIBLY TODAY BUT SEN HUTCHISON DOESN'T GET OFF THAT LIGHTLY MR EARLE WILL PUT THE MATTER TO A SECOND GRAND JURY THERE'S ANOTHER MATTER OF INTEREST THE TRIAL JUDGE THE HON MIKE LYNCH IS A FORMER CHIEF OF MR EARLE'S PUBLIC INTEGRITY UNIT DOES THAT MAKE HIM BIASED NOT NECESSARILY BUT THE APPEARANCE IS OF THE COURTHOUSE CIRCLE TIGHTENING AROUND THE SENATOR SQUEEZING AND SQUEEZING AT LEAST WHILE STILL IN MR EARLE'S OFFICE MR LYNCH ACQUIRED A LITTLE FIRSTHAND EXPERIENCE AT MINGLING PRIVATE AND PUBLIC LIFE IN SEPTEMBER 1992 AT STATE EXPENSE HE AND SEVEN OTHER DA'S OFFICE EMPLOYEES WENT TO SOUTH PADRE ISLAND FOR A MEETING OF DISTRICT AND COUNTY ATTORNEYS COMPLETE WITH GOLF TOURNAMENTS GREYHOUND RACING A BEACH PARTY AND DOUBTLESS SOME LEGAL WISDOM SANDWICHED IN THERE SOMEWHERE AN EXTRAORDINARY OCCASION PERHAPS NOT BUT IT SHOWS THAT EVEN AROUND MR EARLE'S OFFICE THE PUBLICPRIVATE DICHOTOMY IS LESS DISTINCT THAN IT SEEMS IN MR EARLE'S INTERVIEWS THE BLOODIER THIS THING GETS THE HEAVIER ARE ITS IMPLICATIONS FOR TEXAS POLITICS A NEW STATE POLL SUGGESTS THAT GEORGE W BUSH THE SON NOT THE FATHER CAN EVICT MS RICHARDS FROM THE GOVERNOR'S MANSION THE UNSETTLED NATURE OF THE HUTCHISON CASE CLOUDS THAT PROSPECT AS IT CLOUDS OF COURSE MRS HUTCHISON'S OWN HOPES FOR VICTORY IN NOVEMBER 1994 DO WE SEE HERE ONE MORE PROSECUTORIAL LICK FOR GOOD OL' ANN WHATEVER EARLE'S POLITICS WRITES AUSTIN NEWSLETTER EDITOR HARVEY KRONBERG HIS OFFICE HAS BECOME A TOOL IN AN IDEOLOGICAL BATTLE WITH ONE SIDE CRIMINALIZING THE OTHER HE MEANS THE DEMOCRATS ARE CRIMINALIZING THE REPUBLICANS NEEDLESS TO SAY THAT GOES DOWN POORLY WITH THE GOP WHICH CAN BE EXPECTED TO MAKE EARLECONTROL A LEGISLATIVE ISSUE WHY NOT NO BELTWAY DISTRICT ATTORNEY SHOULD BE ABLE TO PLAY KING OF THE POLITICAL MOUNTAIN SWAYING CANDIDACIES AND ELECTIONS THROUGH HIS POWERS TO INVESTIGATE THIS IS POWER GREATER THAN ANY GOVERNOR'S AND WHO CONFERS IT THE VOTERS OF ONE PLEASANT BUT IDEOLOGICALLY SKEWED TEXAS COUNTY IT'S NOT VERY DEMOCRATIC BUT THAT'S EARLE FOLKS MR MURCHISON IS A SYNDICATED COLUMNIST BASED AT THE DALLAS MORNING NEWS 9310260128 931026 INTERNATIONAL FRANCE'S RETREAT IN AIRLINE STRIKE CLOUDS FUTURE OF STATE COMPANIES BY CHARLES FLEMING STAFF REPORTER OF THE WALL STREET JOURNAL PARIS THE FRENCH GOVERNMENT HAS RETREATED IN THE FACE OF STRIKING AIR FRANCE GROUND CREWS UNDERMINING PRIME MINISTER EDOUARD BALLADUR'S COMMITMENT TO RESTORE THE COUNTRY'S MANY STATEOWNED COMPANIES TO FINANCIAL HEALTH ON SUNDAY THE GOVERNMENT AGREED TO OVERRIDE AIR FRANCE'S HARSH AUSTERITY PLAN INVOLVING 4000 JOB CUTS THE PLANNED CUTS PROPOSED BY FORMER AIR FRANCE CHAIRMAN BERNARD ATTALI PROMPTED THE EMPLOYEE WALKOUT WHICH HAS BEEN DISRUPTING FLIGHTS TO AND FROM PARIS AIRPORTS FOR THE PAST WEEK MR ATTALI RESIGNED ON SUNDAY EVENING MINUTES AFTER TRANSPORT MINISTER BERNARD BOSSON ANNOUNCED ON TELEVISION THAT THE GOVERNMENT HAD OVERRULED AIR FRANCE MANAGEMENT AND WOULD NEGOTIATE ANOTHER PLAN WITH EMPLOYEES TO RESTORE THE MONEYLOSING AIRLINE'S FORTUNES UNION LEADERS TOOK HEART FROM THE GOVERNMENT'S ABOUTFACE WHICH COMES LESS THAN ONE WEEK AFTER MR BOSSON DESCRIBED THE ORIGINAL ATTALI PLAN AS IRREVOCABLE THE GOVERNMENT'S DECISION SEALS A VICTORY FOR THE UNIONS AND COULD OPEN THE DOOR TO OTHER CONFLICTS IN OTHER SECTORS SAID CLAUDE JENET A SENIOR OFFICIAL WITH THE FORCE OUVRIERE UNION FORCE OUVRIERE WHICH HAS PLAYED A MAJOR ROLE IN THE AIR FRANCE STRIKE CALLED FOR A RETURN TO WORK YESTERDAY BUT ITS APPEAL WAS BRUSHED ASIDE BY THE STRIKERS ANGRY AIRLINE EMPLOYEES VOTED YESTERDAY TO CONTINUE THE STRIKE AT LEAST UNTIL TOMORROW THE PRESSURE ON THE GOVERNMENT TO DIRECTLY INTERVENE IN THE AIR FRANCE CONFLICT UNDERSCORES HOW DIFFICULT IT WILL BE FOR MR BALLADUR TO PREPARE MONEYLOSING COMPANIES LIKE AIR FRANCE FOR PRIVATIZATION A CENTRAL PLANK OF HIS POLITICAL PLATFORM MR BOSSON EXPRESSED THE DILEMMA FACED BY THE GOVERNMENT WHEN HE SAID ON SUNDAY THAT THE NEW RECOVERY PLAN WOULDN'T INCLUDE ANY LAYOFFS THE NEED TO RESTORE AIR FRANCE'S PROFITABILITY AND COMPETITIVENESS IS A QUESTION OF SURVIVAL AND OF PROTECTING JOBS HE SAID BUT HE DIDN'T EXPLAIN HOW THE COMPANY COULD BE RENDERED MORE COMPETITIVE WITHOUT THE LOSS OF JOBS HE SAID HE HAS GIVEN HIMSELF THREE MONTHS TO NEGOTIATE A NEW ACCORD WITH THE AIRLINE'S EMPLOYEES BY DROPPING MR ATTALI'S RESTRUCTURING PLAN THE GOVERNMENT COULD ALSO JEOPARDIZE ITS HOPES OF WINNING THE EUROPEAN COMMISSION'S APPROVAL OF A PLANNED FIVE BILLION FRANC 8539 MILLION CAPITAL INJECTION FOR THE AIRLINE WHICH SHOWED A LOSS OF 38 BILLION FRANCS IN THE FIRST SIX MONTHS OF THIS YEAR BEFORE THE EC WILL CLEAR ANY SUCH CAPITAL INJECTION IT SEEKS ASSURANCES THAT THE GOVERNMENT FUNDS AREN'T MERELY ANOTHER POLITICALLY INSPIRED SUBSIDY FOR AN INEFFICIENT NATIONAL CHAMPION MR BALLADUR AND HIS MINISTERS FACE A SIMILAR PROBLEM AT OTHER STATEOWNED COMPANIES MR BALLADUR IS A STAUNCH DEFENDER OF ROLLING BACK THE STATE'S ROLE IN INDUSTRY AND SERVICES YET HE HAS NOW BEEN FORCED TO INTERVENE A NUMBER OF TIMES TO OVERRULE GOVERNMENTAPPOINTED CHIEF EXECUTIVES AT STATEOWNED COMPANIES LAST MONTH HE TOLD A NUMBER OF STATE COMPANIES INCLUDING COMPUTER MAKER CIE DES MACHINES BULL THOMSON SA'S ARMS MAKING SUBSIDIARY THOMSONCSF AND AIRCRAFT ENGINE MANUFACTURER SNECMA TO FREEZE ALL PROPOSED LAYOFFS FOR SIX MONTHS HOWEVER THOSE SAME COMPANIES HAVE STRICT ORDERS TO PULL THEMSELVES OUT OF THE RED AS QUICKLY AS POSSIBLE AND TO PREPARE FOR PRIVATIZATION BY APPEASING THE AIR FRANCE STRIKERS THE FRENCH GOVERNMENT IS HOPING THAT THE RECENT CONFRONTATIONS BETWEEN DISGRUNTLED WORKERS AND POLICE WON'T FLARE OUT OF CONTROL AND SPREAD TO OTHER SECTORS THE MILITANT LEFTWING CGT UNION HAS ALREADY CALLED FOR A DAY OF ACTION NEXT MONTH IN SOME 15 STATEOWNED COMPANIES AND UTILITIES INCLUDING THE NATIONAL RAILWAY SNCF BULL THOMSONCSF AND SNECMA TO PROTEST PROPOSED LAYOFFS THERE TODAY WILL BE THE FIRST TEST OF WHETHER THE GOVERNMENT'S CONCILIATORY TACTICS ARE SUCCESSFUL IN RESTORING CALM AS AIR FRANCE FLIGHT CREWS AND EMPLOYEES OF AIR FRANCE'S DOMESTIC UNIT AIR INTER JOIN THE THOUSANDS OF AIR FRANCE GROUNDCREW WORKERS WHO HAVE BEEN MASSING AROUND ROISSY AND ORLY AIRPORTS FOR THE PAST WEEK A SMALL GROUP OF FARMERS ALSO JOINED FORCES BRIEFLY WITH THE AIR FRANCE GROUND STAFF OUTSIDE ONE OF THE PARIS AIRPORTS YESTERDAY WITH FARMERS' UNIONS ALREADY THREATENING WIDESPREAD ACTION IF FRANCE BOWS TO FOREIGN PRESSURE TO LIMIT ITS SUBSIDIZED FARM EXPORTS FOR THE SAKE OF A WORLD TRADE AGREEMENT THE SCENE PROVIDED THE GOVERNMENT WITH A SMALL TASTE OF HOW SOME UNLIKELY BUT POWERFUL ALLIANCES COULD ARISE IF UNREST SPILLS FROM ONE SECTOR INTO ANOTHER 9310260127 931026 CLEARLY CANADIAN'S MIDEAST PACT VANCOUVER BRITISH COLUMBIA CLEARLY CANADIAN BEVERAGE CORP'S INTERNATIONAL UNIT REACHED A 5 1/2YEAR DISTRIBUTION PACT WITH ALMAGOUL TRADING ESTABLISHMENT SAUDI ARABIA TERMS WEREN'T DISCLOSED CLEARLY CANADIAN SAID ALMAGOUL WILL DISTRIBUTE CLEARY CANADIAN PRODUCTS IN SAUDI ARABIA THE UNITED ARAB EMIRATES QATAR BAHRAIN LEBANON JORDAN KUWAIT NORTH YEMEN SOUTH YEMEN OMAN AND SYRIA 9310260126 931026 SOFTWARE MAINTENANCE SPECIALISTS SANTA ANA CALIF SOFTWARE MAINTENANCE SPECIALISTS A CLOSELY HELD COMPANY SAID IT REACHED A THREEYEAR COMPUTER OUTSOURCING AGREEMENT WITH DATATAPE INC A UNIT OF EASTMAN KODAK CO TERMS WEREN'T DISCLOSED THE COMPANY SAID IT WILL PROVIDE SERVICES FOR ALL OF DATATAPE'S MANUFACTURING PROCESSES INCLUDING MATERIALS MANAGEMENT CUSTOMERORDER PROCESSING AND ENGINEERING SOFTWARE MAINTENANCE SAID IT WILL ALSO PROVIDE OUTSOURCING SERVICES FOR DATATAPE'S ELECTRONIC MAIL SYSTEM PAYROLL FUNCTION AND FINANCE DEPARTMENT 9310260125 931026 INTERNATIONAL CUBAMIAMI PHONE SERVICE SLATED FORCING US TRADEEMBARGO ISSUE BY WALL STREET JOURNAL REPORTERS AMY DOCKSER MARCUS IN TEL AVIV AND JOSE DE CORDOBA IN MIAMI AN ISRAELI TELECOMMUNICATIONS COMPANY SAID YESTERDAY IT IS OFFERING DIRECTDIALTELEPHONE SERVICE BETWEEN MIAMI AND CUBA IGNORING THE US TRADE EMBARGO AGAINST CUBA TO REACH A POTENTIALLY LUCRATIVE AND LARGELY UNTAPPED MARKET JACOB SOLAN PRESIDENT AND MANAGING DIRECTOR OF SOLAN TELECOMMUNICATIONS & COMPUTERS LTD OF MOSHAV NIRZVI NEAR TEL AVIV SAYS CUSTOMERS IN THE US AND CUBA WILL BE ABLE TO AUTOMATICALLY DIAL EACH OTHER UTILIZING A SPECIAL TECHNOLOGY DEVELOPED BY THE COMPANY HE DECLINES TO DISCUSS THE TECHNOLOGY FOR FEAR THAT OTHERS WILL TRY TO COPY THE SYSTEM BUT IT INVOLVES A COMPUTER IN LONDON WHICH CAN AUTOMATICALLY SWITCH HUNDREDS OF CALLS BETWEEN ANY TWO DESTINATIONS PROVIDED EACH SIDE HAS DIRECT PHONE SERVICE WITH LONDON THE SERVICE IS IN OPERATION ON A TEST BASIS MR SOLAN SAID AND WILL BE AVAILABLE TO THE GENERAL PUBLIC NEXT WEEK A US TREASURY DEPARTMENT SPOKESMAN SAID THAT AS DESCRIBED MR SOLAN'S PLAN APPEARS TO BE A VIOLATION OF THE US TRADE EMBARGO WITH CUBA WHICH PROHIBITS MOST TRADE WITH CUBA IT SOUNDS LIKE THE TYPE OF CASE WE HAVE TAKEN ACTION ON IN THE PAST AND IF IT IS WE WILL TAKE SWIFT ACTION THE SPOKESMAN SAID HE ADDED THAT IT APPEARS TO VIOLATE THE EMBARGO BECAUSE CUBA WILL EARN MONEY FROM THE SERVICE IN RECENT MONTHS THE US HAS SHUT DOWN PHONE SERVICES TO CUBA OFFERED BY SOME COMPANIES USING 800 NUMBERS IN CANADA HOWEVER OTHER COMPANIES CONTINUE TO OFFER THE SERVICE CHARGING AS MUCH AS 2641 FOR A FOURMINUTE CALL MR SOLAN SAID THAT HE DIDN'T BELIEVE HE WAS BREAKING THE LAW SINCE HE WASN'T TRANSFERRING ANY MONEY TO CUBA IN ANY CASE MR SOLAN SAID HE WAS DETERMINED TO START HIS SERVICE WE DO NOT BELIEVE THAT ANYBODY CAN BLOCK ANYBODY FROM CALLING LONDON SAID MR SOLAN BUT I'M READY TO FIGHT UNTIL NOW SOLAN TELECOMMUNICATIONS HAS FOCUSED ITS MAIN ATTENTION ON THE ISRAELI MARKET SELLING THE SERVICE TO THOSE INTERESTED IN ESTABLISHING A PHONE CONNECTION WITH COUNTRIES THAT DON'T MAINTAIN DIRECT RELATIONS WITH ISRAEL OR TO PROVIDE A BACKUP WHEN REGULAR PHONE LINES ARE TEMPORARILY CUT OFF OR JAMMED MR SOLAN SAID RESEARCH REVEALS THAT THERE IS A HUGE MARKET FOR A MIAMIHAVANA LINE WHICH HE ESTIMATES WILL GENERATE DEMAND OF FIVE MILLION TO 10 MILLION MINUTES EVERY YEAR PEOPLE ON BOTH SIDES NEED AND WANT TO MAKE A CONNECTION HE SAID FOR THE MOMENT FEW ON EITHER SIDE ARE ABLE TO MAKE ANY CONNECTION LAST YEAR SAYS FERNANDO FIGUEREDO A SPOKESMAN FOR AMERICAN TELEPHONE & TELEGRAPH CO THE ONLY LICENSED US CARRIER TO CUBA 60 MILLION CALLS WERE PLACED TO CUBA BUT ONLY 500000 WERE COMPLETED SINCE JUNE WHEN THE CUBAN GOVERNMENT UNILATERALLY CUT BACK THE NUMBER OF CALLS ONLY 300 10MINUTE CALLS TO CUBA ARE COMPLETED DAILY ONE OBSTACLE TO A TELEPHONE AGREEMENT IS CUBA'S DEMAND THAT THE US UNFREEZE SOME 80 MILLION CUBA'S SHARE OF REVENUE FROM LONGDISTANCE CALLS MADE FROM THE US THROUGH AT&T WHICH IS NOW DEPOSITED IN AN ESCROW ACCOUNT CUBA ALSO OBJECTS TO THE 120PERMINUTE RATE SPLIT BETWEEN HAVANA AND US CARRIERS WHICH ACCORDING TO STATE DEPARTMENT GUIDELINES IS THE MAXIMUM THAT THE US COMPANIES CAN CHARGE FOR THE LONGDISTANCE SERVICE CUBA WANTS THE RATE TO BE AT LEAST 2 PER MINUTE SAYS MR FIGUEREDO CITING THOSE TWO REASONS HAVANA RECENTLY TURNED DOWN OFFERS FROM MCI COMMUNICATIONS CORP AT&T AND SPRINT CORP TO PROVIDE TELEPHONE SERVICE BETWEEN THE TWO COUNTRIES MR SOLAN WHO PLANS TO ADVERTISE THE SERVICE THROUGH ADS IN SPANISHLANGUAGE NEWSPAPERS IN MIAMI SAID THAT MOST CUSTOMERS WILL PROBABLY GO TO ONE OF FIVE AGENTS THAT WILL OPERATE IN MIAMI AND HAVANA TO PLACE CALLS BUT THAT LARGEVOLUME CLIENTS WILL RECEIVE AN ACCESS CODE TO THE LONDON COMPUTER AND CAN DIAL DIRECTLY THEMSELVES MR SOLAN WILL CHARGE 3 PER MINUTE AND WILL ONLY DEMAND PAYMENT FOR THE SERVICE IF THE CALL GOES THROUGH CUSTOMERS PAY THEIR LOCAL TELEPHONE SERVICE FOR THE CALL TO LONDON MR SOLAN SAID THAT THE SERVICE DOES NOT REQUIRE OPERATOR ASSISTANCE AND THAT ALL CALLS ARE CONFIDENTIAL AND THEIR PLACE OF ORIGIN CANNOT BE TRACED THE PHONE LINK WILL WORK BOTH WAYS CUBANS WANTING TO MAKE TELEPHONE CONTACT WITH RELATIVES FRIENDS OR BUSINESSES IN MIAMI CAN CONTACT ANY OF FIVE ORGANIZATIONS MR SOLAN HAS RETAINED TO ACT AS AGENTS FOR SOLAN TELECOMMUNICATIONS IN HAVANA SOME OF THE FIVE ARE RUN BY CUBANS AND OTHERS ARE JOINTLY RUN BY CUBANS AND FOREIGNERS LIVING AND WORKING IN CUBA INCLUDING ISRAELI AND FRENCH CITIZENS 9310260124 931026 TECHNOLOGY & SCIENCE SCIENTISTS HALT RESEARCH TO DUPLICATE HUMAN EMBRYOS AFTER FUROR ERUPTS BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL SCIENTISTS IN WASHINGTON DC SAID THEY WON'T MAKE FURTHER ATTEMPTS TO CLONE OR DUPLICATE HUMAN EMBRYOS FOR THE TIME BEING ACKNOWLEDGING THAT THEIR EXPERIMENT SPARKED A FURIOUS REACTION FUROR OVER THE EXPERIMENT HAS LED SEVERAL MEDICAL ORGANIZATIONS TO PLAN GUIDELINES TO OVERSEE ANY FUTURE EFFORTS TO REPRODUCE A HUMAN EMBRYO IN A LABORATORY SETTING RESEARCHERS AT GEORGE WASHINGTON UNIVERSITY MEDICAL CENTER SAID THEY RECENTLY DIVIDED SEVERAL HUMAN EMBRYOS CONSISTING OF BETWEEN TWO TO EIGHT CELLS THE RESEARCHERS SAID TWO OF THE DIVIDED CELLS WERE GROWN FOR SEVERAL DAYS IN TEST TUBES DEVELOPING INTO SEPARATE HUMAN EMBRYOS WHILE THE EXPERIMENT INVOLVED TECHNICAL PROCEDURES SIMILAR TO THOSE ALREADY DONE IN FARM ANIMALS TO PRODUCE MULTIPLE OFFSPRING IT NONETHELESS PRODUCED THE FIRST REPORTED TESTTUBEGENERATED TWIN OF A FERTILIZED HUMAN EGG AT A NEWS CONFERENCE IN WASHINGTON THE RESEARCHERS SAID THE EMBRYOS THEY CONTRIVED WERE ABNORMAL AND COULD NEVER HAVE REACHED FULL TERM IN FACT THEY SURVIVED ONLY A FEW DAYS TO THE 32CELL STAGE STILL NEWS OF THE EXPERIMENT FIRST REPORTED SUNDAY IN THE NEW YORK TIMES TRIGGERED A WIDESPREAD REACTION THAT IS EXPECTED TO DETER EMBRYOCLONING RESEARCH FOR SOME TIME JERRY HALL WHO LED THE EXPERIMENT SAID ONE OF THE REASONS HIS LABORATORY CONDUCTED THE EXPERIMENT WAS TO SPARK A DEBATE OVER THE ETHICS OF THE PROCEDURE IT WAS CLEAR THAT IT WAS JUST A MATTER OF TIME UNTIL SOMEONE WAS GOING TO DO IT AND WE DECIDED IT WOULD BE BETTER FOR US TO DO IT IN AN OPEN MANNER AND GET THE ETHICAL DISCUSSION MOVING DR HALL SAID IN AN ARTICLE TO BE PUBLISHED LATER THIS WEEK IN THE JOURNAL SCIENCE DR HALL IS DIRECTOR OF THE INVITRO FERTILIZATION PROGRAM AT GEORGE WASHINGTON ONE OF NUMEROUS CLINICS WHERE DOCTORS HELP INFERTILE COUPLES CONCEIVE BY USE OF TESTTUBE PROCEDURES DR HALL SAID HE DOESN'T PLAN ANY FURTHER EMBRYOTWINNING RESEARCH BUT SEVERAL EXPERTS IN THE FIELD FAMILIAR WITH DR HALL'S EXPERIMENT WERE SURPRISED IT WAS CONDUCTED AT ALL IT WAS OUR UNDERSTANDING THAT NO ONE WAS GOING TO CONDUCT ANY EMBRYOTWINNING RESEARCH AT LEAST NOT IN THE NEAR FUTURE SAID CYNTHIA COHEN EXECUTIVE DIRECTOR OF THE NATIONAL ADVISORY BOARD FOR ETHICS IN REPRODUCTION IN WASHINGTON AN INDEPENDENT GROUP RECENTLY ORGANIZED TO TACKLE ISSUES IN THIS AREA DR COHEN AN ETHICIST SAID HER GROUP WILL GET TOGETHER SOON TO DEVISE GUIDELINES TO OVERSEE RESEARCH IN DUPLICATING HUMAN EMBRYOS BUT SHE SAID SHE BELIEVED CREATING A HUMAN DOUBLE OF AN EXISTING EMBRYO WAS CONTRARY TO HUMAN VALUES A SPOKESMAN FOR THE AMERICAN FERTILITY SOCIETY BASED IN BIRMINGHAM ALA SAID HIS GROUP WILL ALSO LOOK INTO DEVELOPING RESEARCH GUIDELINES INDEED SEVERAL DOCTORS SAID THEY HAD NEITHER PLANS TO DUPLICATE THE EXPERIMENT NOR ANY INTEREST IN PRODUCING EMBRYO TWINS IT'S AN INTERESTING EXPERIMENT BUT I DON'T THINK THEY DEMONSTRATED THAT THIS IS SOMETHING WE WANT TO DO SAID ZEV ROSENWAKS DIRECTOR OF REPRODUCTIVE MEDICINE AT CORNELL UNIVERSITY MEDICAL CENTER NEW YORK DR HALL SAID HE WAS A BIT SURPRISED BY THE INTENSE PUBLIC REACTION TO NEWS OF HIS EXPERIMENT HE SAID THE DUPLICATING INVOLVED EMBRYOS THAT WERE ABNORMAL SINCE THEY WERE FORMED WHEN HUMAN EGGS WERE INADVERTENTLY FERTILIZED BY MORE THAN ONE SPERM DR HALL SAID HE HAD RECEIVED APPROVAL TO CONDUCT THE TEST FROM THE UNIVERSITY'S EXPERIMENTAL REVIEW BOARD AND BELIEVED IT WAS AN ETHICAL EXPERIMENT BECAUSE THE STUDIED EMBRYOS COULD NEVER DEVELOP INTO A VIABLE FETUS IN THE EXPERIMENT DR HALL AND HIS COLLEAGUES DIVIDED 17 TWOCELL TO EIGHTCELL EMBRYOS CREATING 48 NEW EMBRYOS IN ALL BUT ONLY TWO OF THE 48 CLEAVED EMBRYOS SURVIVED TO THE 32CELL STAGE THE REST DIDN'T DEVELOP TO THE POINT WHERE THEY COULD HAVE BEEN IMPLANTED INTO THE UTERUS AT THIS POINT HE SAID THE PROCEDURE ISN'T TECHNICALLY FEASIBLE BUT DR HALL SAID HE BELIEVED THAT DUPLICATING EMBRYOS MIGHT HELP INFERTILE COUPLES FOR WHOM IT IS DIFFICULT TO FERTILIZE MANY EGGS INVITRO FERTILIZATION USUALLY INVOLVES THE TRANSFERRING OF NUMEROUS FERTILIZED EGGS INTO A UTERUS HOPING THAT ONE OF THEM WILL BECOME SUCCESSFULLY IMPLANTED DR HALL SAID HE WOULD BE INTERESTED IN THE PROCEDURE ONLY IF MEDICAL SOCIETIES AND ETHICISTS BELIEVED SUITABLE GUIDELINES COULD BE CREATED 9310260123 931026 ECONOMY SEPTEMBER HOUSING RESALES ROSE 26 ALL REGIONS BUT NORTHEAST POSTED GAINS BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL SALES OF PREVIOUSLY OWNED HOMES GREW A STEADY 26 IN SEPTEMBER FROM THE PREVIOUS MONTH AS PENTUP DEMAND AND INTEREST RATES AT THE LOWEST LEVEL IN A QUARTER OF A CENTURY CONTINUED TO POWER A NATIONAL HOUSING RECOVERY SINGLEFAMILY EXISTING HOME SALES GREW TO 3910000 ON A SEASONALLY ADJUSTED ANNUALIZED BASIS FROM A REVISED PACE OF 3810000 IN AUGUST ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS THE SEPTEMBER PACE WAS THE HIGHEST MONTHLY PACE SINCE DECEMBER ALL REGIONS EXCEPT THE NORTHEAST WHERE SALES WERE FLAT POSTED MONTHOVERMONTH GAINS SALES GREW 157 IN SEPTEMBER FROM THE SAME MONTH A YEAR AGO THE VIGOR OF IT IS VERY ENCOURAGING SAID JOHN A TUCCILLO CHIEF ECONOMIST AT THE NATIONAL ASSOCIATION OF REALTORS HE SAID IT WAS GREAT NEWS FOR THE ECONOMY OVERALL BECAUSE SUSTAINED ROBUST HOME RESALE ACTIVITY PORTENDS A GENERAL ECONOMIC RECOVERY HOWEVER THERE ARE SOME SIGNS THAT THE MARKET MAY COOL OFF A LITTLE BEFORE THE END OF THE YEAR THE WEEKLY INDEX OF VOLUME BY THE MORTGAGE BANKERS ASSOCIATION OF AMERICA SHOWS THAT HOMELOAN APPLICATIONS HAVE BEEN SLACKENING FOR THE PAST THREE MONTHS FROM THEIR PEAK THE INDEX REFLECTS NEWLY OPENED TRANSACTIONS THAT TAKE UP TO TWO MONTHS TO COMPLETE BUT THE INDEX IS STILL RUNNING AT 56 ABOVE NORMAL VOLUME WE'RE ON A PLATEAU THAT'S A VERY STRONG PLATEAU AND WE'RE NOT GOING DOWN TOO FAR SAID MR TUCCILLO INDEED SINGLEFAMILY HOUSING STARTS HAVE BEEN STRONG FOR TWO MONTHS IN SEPTEMBER HOUSING STARTS WERE RUNNING AT AN ANNUALIZED RATE OF 1140000 DOWN SOMEWHAT FROM AUGUST BUT STILL CLOSE TO THE BOOM PEAK OF 1180000 IN 1986 THE MOST IMPRESSIVE STRIDE IN HOME RESALE ACTIVITY WAS MADE IN THE WEST WITH A 20 VAULT FROM A YEAR AGO AND A SOLID 24 GAIN FROM THE PREVIOUS MONTH MR TUCCILLO SAID THE REGION WAS DRIVEN BY THRIVING SALES IN THE PACIFIC NORTHWEST AND ALONG THE SPINE OF THE ROCKIES MAKING THOSE AREAS THE STRONGEST MARKETS IN THE COUNTRY BUT ACCORDING TO THE CALIFORNIA ASSOCIATION OF REALTORS EVEN THAT STATE'S RECENTLY MORIBUND HOUSING MARKET HAS COME BACK TO LIFE WITH RESALES JUMPING 115 IN SEPTEMBER FROM AUGUST THE MIDWEST CONTINUED TO BOOM WITH A 63 MONTHLY INCREASE WHILE THE SOUTH INCREASED 21 THE ONLY PART OF THE COUNTRY NOT TO GROW WAS THE NORTHEAST WHERE SALES WERE FLAT WITH THE AUGUST FIGURES ALTHOUGH THE REGION POSTED A 132 INCREASE AGAINST A YEAR AGO DEMONSTRATING SOME IMPROVEMENT SOME ANALYSTS IN FACT SAY THAT THE LACK OF JOB GROWTH AND LOW CONSUMER CONFIDENCE THAT CONTINUE TO RESTRAIN THE NORTHEAST ALSO ARE SLOWING THE NATIONAL RECOVERY YOU'D CERTAINLY EXPECT MORE BOUNCE WITH INTEREST RATES SO LOW SAID KEITH GUMBINGER AN ANALYST AT HSH ASSOCIATES IN BUTLER NJ THAT STILL SAYS TO ME THAT MORTGAGES AREN'T DOING THE WHOLE JOB TO GET THE HOUSING MARKET STARTED 9310260122 931026 TECHNOLOGY & SCIENCE MYLAN IS CLEARED TO MAKE GENERIC VERSION OF TAGAMET BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH MYLAN LABORATORIES INC BECAME THE FIRST GENERIC DRUG COMPANY TO WIN FOOD AND DRUG ADMINISTRATION APPROVAL TO MAKE AND MARKET CIMETIDINE THE GENERIC EQUIVALENT OF SMITHKLINE BEECHAM'S PLC TAGAMET ULCER DRUG SMITHKLINE'S EXCLUSIVE RIGHT TO MARKET TAGAMET FREE OF GENERIC COMPETITION EXPIRES MAY 17 1994 ANALYSTS SAID THE IMPACT ON MYLAN'S EARNINGS WILL DEPEND ON HOW MANY OTHER GENERIC DRUG COMPANIES RECEIVE APPROVAL FROM THE FDA TO MAKE GENERIC TAGAMET AND HOW MANY PATIENTS WHO TAKE TAGAMET OR A SIMILAR ULCER DRUG ZANTAC SWITCH TO THE LESSEXPENSIVE GENERIC DAVID SAKS AN ANALYST WITH GRUNTAL & CO SAID GENERIC TAGAMET SALES COULD BOOST MYLAN'S EARNINGS BETWEEN 15 CENTS TO 30 CENTS A SHARE IN FISCAL 1995 IN THE YEAR ENDED MARCH 31 MYLAN HAD PROFIT OF 706 MILLION OR 92 CENTS A SHARE ON SALES OF 212 MILLION HOWEVER JERRY TREPPEL AN ANALYST WITH KIDDER PEABODY SAID IT'S TOO EARLY TO FORECAST THE IMPACT ON MYLAN'S EARNINGS BOTH ANALYSTS RATE PITTSBURGHBASED MYLAN'S STOCK OUTPERFORM MR TREPPEL SAID HOWEVER THAT THE BENEFIT TO GENERIC DRUG COMPANIES LIKE MYLAN COULD BE HUGE IF THEY ATTRACT USERS OF ZANTAC WHICH REPRESENTS A FAR BIGGER MARKET THAN TAGAMET ZANTAC WHICH IS MADE BY GLAXO HOLDINGS PLC GENERATES ABOUT 15 BILLION IN ANNUAL SALES AT LEAST TWICE THAT OF TAGAMET MR TREPPEL SAID THAT MANY INSURANCE COMPANIES CONSIDER ZANTAC AND TAGAMET TO BE CLINICALLY EQUIVALENT WITH THE SAME SIDEEFFECTS AND RESULTS DESPITE DIFFERING CHEMICAL BASES THEY'RE CONSIDERED INTERCHANGEABLE THE QUESTION IS WILL PEOPLE TAKE GENERIC TAGAMET INSTEAD OF THE MORE EXPENSIVE ZANTAC MY SUSPICION IS THAT YOU'RE GOING TO SEE A LOT OF THAT MR TREPPEL SAID MYLAN'S STOCK CLOSED DOWN 50 CENTS YESTERDAY AT 3050 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING REFLECTING SUCH QUESTIONS AS WELL AS EXPECTATIONS THAT MYLAN WILL REPORT LOWER FISCAL SECONDQUARTER RESULTS THIS WEEK MYLAN SAID IT HAD A TOUGH QUARTER FOR THE PERIOD ENDED SEPT 30 A SPOKESWOMAN SAID THE COMPANY IS COMFORTABLE WITH ANALYSTS' ESTIMATES OF 20 CENTS A SHARE IN THE YEARAGO QUARTER WHICH REFLECTED SOME NEW PRODUCT INTRODUCTIONS MYLAN POSTED NET INCOME OF 167 MILLION OR 22 CENTS A SHARE ON SALES OF 51 MILLION TAGAMET IS PRESCRIBED FOR ULCERS IN 200 300 400 AND 800 MILLIGRAM DOSES THE FDA'S APPROVAL OF MYLAN'S GENERIC TAGAMET COVERS THOSE DOSAGE LEVELS ANALYSTS EXPECT SMITHKLINE TO SEEK FDA APPROVAL TO MARKET A NONPRESCRIPTION TAGAMET AT 200 MG FOR HEARTBURN BUT SAY THAT DOSAGE IS A SMALL FRACTION OF THE TOTAL PRESCRIPTION MARKET 9310260121 931026 BOEING'S PROFIT SLID 45 IN 3RD PERIOD AS GRUMMAN'S NET INCOME JUMPED 47 BY ROY J HARRIS JR STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO CONTINUING TO DELIVER JETLINERS AT SHARPLY LOWER LEVELS REPORTED THAT THIRDQUARTER NET INCOME PLUNGED 45 TO 189 MILLION OR 56 CENTS A SHARE MEANWHILE GRUMMAN CORP WAS REPRESENTATIVE OF AEROSPACE COMPANIES THAT ARE LESS DEPENDENT ON THE WEAK COMMERCIALTRANSPORT MARKET IMPROVING ITS PROFIT MARGIN AND SLASHING INTEREST COSTS TO HELP PRODUCE A 47 SURGE IN NET INCOME FOR THE PERIOD TO 299 MILLION OR 85 CENTS A SHARE SEATTLEBASED BOEING THE WORLD'S LEADING SUPPLIER TO AIRLINES EARNED 345 MILLION OR 102 A SHARE IN LAST YEAR'S THIRD PERIOD SALES DIVED 25 TO 515 BILLION FROM 69 BILLION REFLECTING ITS DELIVERY OF 67 AIRLINERS DOWN FROM 96 A YEAR EARLIER THE SEVERITY OF THE THIRDQUARTER DECLINE AT BOEING WHICH HAD PREVIOUSLY FORECAST SHARPLY LOWER SALES IN THE SECOND HALF OF THE YEAR SURPRISED SOME AEROSPACEINDUSTRY ANALYSTS I'M CUTTING MY ESTIMATE BY A DIME TO 365 A SHARE FROM 375 AND TO 240 FROM 250 NEXT YEAR SAID PETER ASERITIS OF CS FIRST BOSTON INC WHOSE 62CENTASHARE THIRDQUARTER ESTIMATE HAD BEEN A SHADE BELOW THE CONSENSUS OF ANALYSTS APPARENTLY THEY DIDN'T TELL US ENOUGH ABOUT HOW BAD IT WAS GOING TO BE HE SAID IN ALL OF 1992 BOEING EARNED 164 BILLION OR 481 A SHARE EXCLUDING 108 BILLION IN CHARGES IT TOOK IN ADOPTING AN ACCOUNTING CHANGE FOR RETIREE HEALTH CARE AFTER THE EARNINGS ANNOUNCEMENTS YESTERDAY BOEING SHARES SLID 875 CENTS TO 37375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AND GRUMMAN SHARES SURGED 1875 OR 53 TO 37375 WHILE ANALYSTS WERE CLOSE TO THE MARK IN THE COMMERCIAL AREA MR ASERITIS NOTED DEFENSE SALES GOT CREAMED BOEING SAID ITS REVENUES FROM DEFENSE AND SPACE OPERATIONS DECLINED TO 114 BILLION FROM 158 BILLION IN THE YEAREARLIER QUARTER AND ITS USGOVERNMENT BACKLOG AS OF SEPT 30 FELL TO 34 BILLION FROM 45 BILLION AS OF JUNE 30 ON THE COMMERCIAL SIDE IT'S NOT ALL CREPE AND SACKCLOTH SAID HOWARD RUBEL OF GOLDMAN SACHS & CO HE NOTED THAT BOEING CONTINUES TO HAVE A HEALTHY 13 PROFIT MARGIN BEFORE RESEARCH AND DEVELOPMENT EXPENSES AND SAID THERE WOULD BE A BENEFIT TO THE COMPANY IF IT KEPT TO ITS PLAN TO HOLD RESEARCH SPENDING ABOVE 17 BILLION FOR ALL OF 1993 BOEING'S NEW COMMERCIAL PROGRAMS INCLUDING THE 777 TWINENGINE WIDE BODY AND ADDITIONAL MODELS OF ITS 737 AND 767 AIRCRAFT SHOW THAT IT HAS A DEMAND FOR NEW PRODUCT AND IS CONCENTRATING ON CUSTOMER NEEDS STILL MR RUBEL SAID BOEING'S EARNINGS ARE GOING TO BE DOWN FOR AT LEAST ANOTHER FOUR QUARTERS FOR THE NINE MONTHS BOEING EARNINGS JUMPED TO 940 MILLION OR 277 A SHARE FROM 195 MILLION OR 58 CENTS A SHARE THE YEAREARLIER RESULTS INCLUDED THE EFFECTS OF THE RETIREE HEALTHCARE ACCOUNTING CHANGE SALES SLID 13 TO 198 BILLION FROM 227 BILLION AT GRUMMAN BASED IN BETHPAGE NY NET INCOME IN THE QUARTER CONTRASTED WITH 204 MILLION OR 68 CENTS A SHARE A YEAR EARLIER SALES ROSE 29 TO 7914 MILLION FROM 7689 MILLION THE COMPANY WHICH GETS 60 OF ITS REVENUE FROM AEROSPACE MANAGED TO SLASH INTEREST COSTS 41 TO 253 MILLION AS IT PARED TOTAL DEBT TO 2448 MILLION FROM 4514 MILLION CHAIRMAN RENSO L CAPORALI SAID THE BALANCESHEET IMPROVEMENTS WILL ENABLE US TO AGGRESSIVELY PURSUE OPPORTUNITIES IN OUR CORE BUSINESSES INCLUDING ELECTRONICS AND INFORMATION SYSTEMS WHERE THE COMPANY HAS SAID IT'S STUDYING POSSIBLE ACQUISITIONS FOR THE NINE MONTHS GRUMMAN POSTED NET OF 843 MILLION OR 245 A SHARE COMPARED WITH A LOSS OF 1202 MILLION OR 364 A SHARE GRUMMAN'S YEAREARLIER PERIOD ALSO INCLUDED THE EFFECTS OF A RETIREE HEALTH ACCOUNTING CHANGE SALES FELL 66 TO 241 BILLION FROM 257 BILLION IN PART REFLECTING THE DISCONTINUATION OF ITS WORK REFURBISHING F14 FIGHTERS 9310260120 931026 PROFITS ARE STRONG AT EXXON ASHLAND UNOCAL BUT AMERADA HESS REPORTS LOSS BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL EXXON CORP ASHLAND OIL INC AND UNOCAL CORP POSTED STRONG PROFITS FOR THE SEPTEMBER QUARTER DRIVEN IN LARGE PART BY ROBUST RETAIL GASOLINE SALES AMERADA HESS CORP HOWEVER SWUNG TO A LOSS FROM A YEAREARLIER PROFIT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING EXXON ROSE 1 TO 65625 ASHLAND FELL 375 CENTS TO 34875 UNOCAL ADVANCED 625 CENTS TO 30125 AND AMERADA HESS GAINED 75 CENTS TO 5275 EXXON SAID ITS THIRDQUARTER NET INCOME ROSE ALMOST 19 FROM YEAREARLIER LEVELS PROPPED UP BY PROFITABLE REFINING AND MARKETING BUSINESSES THE OIL GIANT REPORTED QUARTERLY PROFIT OF 136 BILLION OR 109 A SHARE A YEAR EARLIER EXXON EARNED 115 BILLION OR 91 CENTS A SHARE REVENUE SLID ALMOST 9 TO 2792 BILLION THIS YEAR FROM 3064 BILLION LAST YEAR DESPITE A DECLINE IN CRUDE PRICES TO THEIR LOWEST LEVEL IN THREE YEARS NET WAS THE HIGHEST LEVEL ACHIEVED IN ANY THIRD QUARTER IN THE COMPANY'S HISTORY SAID EXXON CHAIRMAN LEE R RAYMOND QUARTERLY INCOME FROM EXXON'S EXPLORATION AND PRODUCTION OPERATIONS INCREASED SLIGHTLY TO 273 MILLION FROM 271 MILLION EVEN AS CRUDEOIL PRICES FELL 350 A BARREL FROM LAST YEAR'S LEVELS RESULTS FROM THIS SECTOR INCLUDED 249 MILLION IN BENEFITS FROM THE SALE OF ASSETS AND TAX CREDITS THE 1992 QUARTER CONTAINED 43 MILLION IN SPECIAL CHARGES THE PROFITABILITY OF THE REFINING AND MARKETING BUSINESSES WORLDWIDE JUMPED BECAUSE THE PRICE FOR CRUDE OIL DECLINED MORE RAPIDLY THAN THE PRICE OF PRODUCTS REFINED FROM THE CRUDE THE QUARTERLY NUMBERS ROSE 21 TO 595 MILLION FROM 492 MILLION DURING LAST YEAR'S THIRD QUARTER WITH MOST OF THE GAINS MADE IN THE US SECTOR EARNINGS FROM CHEMICAL OPERATIONS AND OTHER SEGMENTS OF BUSINESS DECLINED PLAGUED BY SLUGGISH ECONOMIC CONDITIONS ASHLAND'S FISCAL FOURTHQUARTER RESULTS SWUNG TO A PROFIT FROM A YEAREARLIER LOSS THE COMPANY REPORTED NET OF 67 MILLION OR 1 A SHARE FOR THE QUARTER ENDED SEPT 30 THIS COMPARES WITH A NET LOSS OF 103 MILLION OR 175 A SHARE A YEAR BEFORE REVENUE FOR THE QUARTER SLIPPED 35 TO 27 BILLION FROM 28 BILLION FOR THE YEAR ENDED SEPT 30 ASHLAND HAD NET INCOME OF 142 MILLION COMPARED WITH A NET LOSS OF 336 MILLION LAST YEAR REVENUE WAS 102 BILLION IN BOTH PERIODS CONTRARY TO THE INDUSTRY TREND ASHLAND'S BIGGEST BOOST TO ITS BOTTOM LINE CAME FROM ITS CHEMICAL BUSINESS WHICH SHOWED RECORD PROFITS FOR THE QUARTER AND THE YEAR INCOME FROM THAT SECTOR JUMPED TO 282 MILLION FROM 105 MILLION FOR THE QUARTER AND TO 1081 MILLION FROM 811 MILLION FOR THE YEAR PROFITS FROM GASOLINE SALES AND REFINING OPERATIONS WERE ALSO ROBUST AMERADA HESS REPORTED AN UNPROFITABLE THIRD QUARTER ITS BUSINESS SUFFERING FROM A SHARP DECLINE IN EARNINGS FROM ITS EXPLORATION AND PRODUCTION SECTOR DURING THE THIRD QUARTER THE COMPANY SAID IT HAD A LOSS OF 224 MILLION OR 24 CENTS A SHARE COMPARED WITH YEARBEFORE PROFIT OF 87 MILLION OR 11 CENTS A SHARE REVENUE DECLINED 12 TO 124 BILLION FROM 142 BILLION EXPLORATION AND PRODUCTION INCOME TUMBLED 65 TO 122 MILLION FROM 353 MILLION DURING THE THIRD QUARTER OF 1992 THE REFINING AND MARKETING SECTORS WERE UNPROFITABLE SHOWING LOSSES OF 57 MILLION IN THIS YEAR'S QUARTER COMPARED WITH A YEARBEFORE LOSS OF 12 MILLION UNOCAL'S THIRDQUARTER NET INCOME ROSE MORE THAN FIVEFOLD TO 70 MILLION OR 25 CENTS A SHARE FROM 11 MILLION OR ONE CENT A SHARE A YEAR EARLIER THE GAINS REFLECTED IMPROVED WEST COAST REFINING AND MARKETING RESULTS LOWER WORLDWIDE EXPLORATION EXPENSE AND INTEREST EXPENSE AND ONETIME CHARGES IN BOTH PERIODS THE 1993 QUARTER INCLUDED A 14 MILLION CHARGE FROM THE HIGHER FEDERAL TAX RATE ON DEFERRED TAXES WHILE THE PRIORYEAR QUARTER INCLUDED A 32 MILLION CHARGE FOR RESTRUCTURING REVENUE FELL TO 196 BILLION FROM 251 BILLION WHICH THE COMPANY ATTRIBUTED TO THE SALE OF SEVERAL BUSINESSES OPERATING EARNINGS ROSE 40 TO 91 MILLION OR 34 CENTS A SHARE RICHARD H STEGEMEIER UNOCAL'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE IMPROVED RESULTS ALSO STEMMED FROM HIGHER DOMESTIC NATURALGAS PRICES AND COST REDUCTIONS BUT NOTED THAT LOWER WORLDWIDE CRUDEOIL PRICES AND PRODUCTION PARTIALLY OFFSET THOSE FACTORS PAULINE YOSHIHASHI CONTRIBUTED TO THIS ARTICLE 9310260119 931026 ENTERPRISE MORE SMALL FIRMS WOULD GET SUBSIDY UNDER HEALTH PLAN BY HILARY STOUT AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION HAS INCREASED THE NUMBER OF SMALL BUSINESSES THAT WOULD BE ELIGIBLE FOR GOVERNMENT SUBSIDIES UNDER ITS HEALTHCARE PLAN UNDER THE REVISIONS COMPANIES WITH 75 OR FEWER WORKERS WOULD BE ELIGIBLE FOR FEDERAL FINANCIAL ASSISTANCE TO HELP THEM PROVIDE HEALTH INSURANCE FOR THEIR EMPLOYEES PROVIDED THEIR WAGES AVERAGE LESS THAN 24000 AN EARLIER VERSION OF THE HEALTH PLAN PUT THE ELIGIBILITY CRITERIA AT 50 OR FEWER WORKERS THE WAGE REQUIREMENT WOULD REMAIN UNCHANGED THE 75EMPLOYEE THRESHOLD IS ONE OF A NUMBER OF LASTMINUTE CHANGES INCLUDED IN THE 1600PAGE HEALTHCARE BILL THAT PRESIDENT CLINTON AND HILLARY RODHAM CLINTON PLAN TO PRESENT TO CONGRESS TOMORROW WHILE MR CLINTON OUTLINED THE MAJOR AIMS OF HIS HEALTH PROPOSAL IN A SPEECH TO CONGRESS LAST MONTH HE HAS YET TO SEND LAWMAKERS A FORMAL LEGISLATIVE PROPOSAL THE REVISED VERSION OF THE PLAN WOULD BASE THE GENEROSTY OF SUBSIDIES ON A COMPANY'S SIZE AS WELL AS ITS AVERAGE WAGE THAT MEANS A FIRM THAT HAS 50 EMPLOYEES AND AVERAGE WAGES OF 12000 WOULD RECEIVE A LESS GENEROUS SUBSIDY THAN A FIRM THAT HAS 10 WORKERS AND AN AVERAGE WAGE OF 12000 THE EARLIER DRAFT OF THE PLAN WOULD HAVE BASED THE SIZE OF THE SUBSIDY SOLELY ON THE AVERAGE WAGE OF THE BUSINESS OFFICIALS ALSO SAID THAT THE PRESIDENT WON'T PROPOSE LIMITING THE NUMBER OF TRADITIONAL FEEFORSERVICE PLANS THAT CAN BE OFFERED IN A REGION THE EARLIER DRAFT HAD SUGGESTED THERE WOULD BE A LIMIT 9310260118 931026 MARKETING BRIEF NOTED MAGAZINES THE SECOND ANNUAL ACRES OF DIAMONDS AWARD ADMINISTERED BY TEMPLE UNIVERSITY'S SCHOOL OF COMMUNICATIONS AND THEATER TO THE BEST NEW MAGAZINE LAUNCHED IN THE PAST FIVE YEARS WAS AWARDED TO SMARTMONEY A PERSONAL FINANCE MAGAZINE JOINTLY PUBLISHED BY HEARST CORP AND DOW JONES & CO 9310260117 931026 WHO'S NEWS WALT DISNEY CO WALT DISNEY CO BURBANK CALIF JEFF JORDAN AND PETER MURPHY WERE BOTH NAMED VICE PRESIDENT OF STRATEGIC PLANNING MR JORDAN 34 YEARS OLD WILL FOCUS ON THE CONSUMER PRODUCTS AREA AND MR MURPHY 30 ON THE FILM AND RECORDING AREAS BOTH MEN PREVIOUSLY WERE DIRECTORS OF STRATEGIC PLANNING WITH THIS MOVIE AND TELEVISION PROGRAMMING THEME PARKS AND CHARACTER MERCHANDISING CONCERN 9310260115 931026 INTERNATIONAL US TO GRANT AID IF UKRAINE DISARMS NUCLEAR ARSENAL BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL KIEV UKRAINE THE US PLEDGED 330 MILLION IN ECONOMIC AND TECHNICAL ASSISTANCE TO UKRAINE AFTER PRESIDENT LEONID KRAVCHUK ASSURED U S SECRETARY OF STATE WARREN CHRISTOPHER THAT UKRAINE WANTED TO SURRENDER ITS LARGE NUCLEAR ARSENAL THE AID WILL BE MOVING FORWARD EVEN THOUGH MR KRAVCHUK TOLD MR CHRISTOPHER THAT THERE COULD BE A TOUGH FIGHT PERSUADING PARLIAMENT TO ACCEPT UKRAINE'S FULL NUCLEAR DISARMAMENT MR CHRISTOPHER TOLD REPORTERS THAT PRESIDENT KRAVCHUK AND PARLIAMENTARY LEADERS GAVE A CLEAR COMMITMENT TO ME THAT THEY DESIRE A NONNUCLEAR FUTURE FOR UKRAINE BUT HE ACKNOWLEDGED THAT THERE WERE STILL QUESTIONS ABOUT TIMING FOREIGN MINISTER ANATOLY ZLENKO ECHOING OBJECTIONS RAISED BY LEGISLATORS SAID HIS COUNTRY NEEDED 28 BILLION IN FINANCIAL HELP BEFORE IT COULD DISMANTLE ALL ITS WEAPONS AS WELL AS STRONGER GUARANTEES THAT UKRAINE'S MILITARY SECURITY WOULD BE PROTECTED MR CHRISTOPHER BRUSHED OFF THE 28 BILLION ESTIMATE I CAN'T RELATE TO THAT FIGURE HE SAID THE US ASSISTANCE OF 330 MILLION WOULD COME FROM MORE THAN 3 BILLION OF AID THAT CONGRESS HAD APPROVED PREVIOUSLY FOR THE FORMER SOVIET REPUBLICS AND IS EXPECTED TO BEGIN FLOWING SOON UKRAINIAN LEGISLATORS WHO MUST DECIDE WHETHER TO JOIN THE 1968 NUCLEAR NONPROLIFERATION TREATY SAID THAT INSTABILITY IN RUSSIA AS WELL AS UKRAINE'S FINANCIAL STRAITS MAKE IT DIFFICULT FOR UKRAINE TO GIVE UP ALL ITS NUCLEAR WEAPONS AFTER MEETING WITH MR CHRISTOPHER DMYTRO PAVLYCHKO THE HEAD OF THE PARLIAMENT'S FOREIGN RELATIONS COMMITTEE TOLD REPORTERS THAT UKRAINE MIGHT HAVE TO KEEP ITS 46 MOST MODERN SS24 MISSILES FOR AS LONG AS 20 YEARS LEGISLATORS WERE SOMEWHAT MORE OPTIMISTIC THAT THEY WOULD RATIFY THE START I TREATY WHICH CALLS FOR THE DESTRUCTION OF UKRAINE'S REMAINING 130 MISSILES THAT DATE BACK TO THE 1970S AT A NEWS CONFERENCE IN WASHINGTON YESTERDAY PRESIDENT CLINTON SAID HE UNDERSTOOD UKRAINE'S RELUCTANCE TO GIVE UP ITS NUCLEAR WEAPONS BUT I THINK THAT IT IS NOT JUSTIFIED BECAUSE WE'RE MAKING PROGRESS WITH RUSSIA TOO IN COMPLYING WITH THESE AGREEMENTS UKRAINE WHICH HAS THE WORLD'S THIRDLARGEST NUCLEAR ARSENAL SIGNED A FORMAL AGREEMENT WITH THE US IN MAY OF 1992 THAT IT WOULD GIVE UP ALL ITS SOVIETERA NUCLEAR WEAPONS BUT SINCE THEN BOTH MR KRAVCHUK AND HIS PARLIAMENT HAVE DRAGGED THEIR FEET 9310260114 931026 LEISURE & ARTS THEATER FIVE NEW PLAYS ALL ABOUT EVE BY MELANIE KIRKPATRICK NEW YORK IN LESS EVOLVED TIMES TWO MIDDLEAGED WHITE MEN NAMED RODGERS AND HAMMERSTEIN WERE ABLE TO PROCLAIM WITH GUSTO THERE IS NOTHING LIKE A DAME CALL ME SEXIST BUT THAT LYRIC SPRANG TO MIND RECENTLY AFTER SEEING A QUINTET OF OFFBROADWAY SHOWS BY OR ABOUT WOMEN IN WILDLY DIFFERENT WAYS EACH HAS SOMETHING INTRIGUING TO SAY ABOUT A WOMAN'S LOT THE MOST CONVENTIONAL IS TIMOTHY MASON'S THE FIERY FURNACE LUCILLE LORTEL THEATRE WHICH TAKES ITS NAME FROM THE BIBLICAL STORY OF DANIEL IN THE LION'S DEN HERE THE LION IS THE BULLYING PATRIARCH OF A MIDDLECLASS MIDWESTERN FAMILY IN THE 1950S AND THE MARTYRS ARE HIS LONGSUFFERING WIFE AND DAUGHTERS THE PLAY'S NOTVERYORIGINAL THEME IS THAT BENEATH THE SURFACE OF A DECOROUS FATHER KNOWS BEST HOUSEHOLD CAN LURK VIOLENCE AND DARK EMOTION ALONG THE WAY THERE ARE SOME PROFORMA SWIPES AT RELIGION GOOD MANNERS AND THE REPUBLICAN PARTY NO PLAYWRIGHT IT SEEMS IS DARING ENOUGH OR ORIGINAL ENOUGH TO CRITICIZE ATHEISTS BOORS AND DEMOCRATS BUT IF THE PLAY IS MEDIOCRE JULIE HARRIS WHO PLAYS THE MOTHER IS ANYTHING BUT HOLDER OF A RECORD FIVE TONYS SHE IS A SPLENDID ACTRESS WE KNOW WE ARE IN THE PRESENCE OF A PRO FROM THE MOMENT SHE ENTERS THE STAGE HAT ON HEAD GLOVES ON HANDS SHE LOOKS THE PART OF A PRIM AND CORRECT MATRON AND THEN IN THE MOST COURTEOUS TERMS SHE PROCEEDS TO TELL HER DAUGHTER THAT SHE IS GOING TO LEAVE HER HUSBAND AND ACCOMPANY HER TO THE UNIVERSITY OF CHICAGO WHERE SHE WILL SLEEP ON THE FLOOR OF HER DAUGHTER'S DORM ROOM THIS IS A WOMAN ON THE VERGE OF A NERVOUS BREAKDOWN AND MS HARRIS PLAYS IT JUST RIGHT THERE ARE NO HISTRIONICS JUST THE SAME MATTEROFFACT TONE SHE MIGHT USE IF SHE WERE ANNOUNCING THAT SHE WAS HEADING OFF TO A POTLUCK SUPPER AT CHURCH WHILE THE FIERY FURNACE IS ABOUT THE PREFEMINIST '50S ANOTHER NEW SHOW WITH FIRE IN ITS TITLE IS ABOUT THE AGGRESSIVELY FEMINIST '70S '80S AND '90S FIRE IN THE RAIN UNION SQUARE THEATER IS A ONEWOMAN MUSICAL STARRING FOLK SINGERACTIVIST HOLLY NEAR IN THE STORY OF HER LIFE IT WAS WRITTEN BY MS NEAR AND HER SISTER TIMOTHY WHO IS ARTISTIC DIRECTOR OF THE SAN JOSE REPERTORY THEATRE YES THE SISTER IS CALLED TIMOTHY NOW THERE'S A DAME WITH A NAME SINCE THE LATE '60S MS NEAR HAS BEEN IN THE VANGUARD OF VIRTUALLY EVERY LEFTWING MOVEMENT SHE WENT WITH JANE FONDA TO NORTH VIETNAM SHE BEFRIENDED THE SANDINISTAS SHE TEMPORARILY BECAME A LESBIAN AND ALONG THE WAY SHE WROTE EARNEST FOLK SONGS ABOUT EVERYTHING FIRE IN THE RAIN IS A MUSICAL HISTORY OF MODERN AMERICAN RADICALISM MS NEAR'S VOICE LACKS THE SOARING POWER OF JUDY COLLINS OR JONI MITCHELL BUT IS NEVERTHELESS CLEAR AND SWEET AND SINCERE HER SONGS ARE IN THE TRADITION OF PETE SEEGER AND THE WEAVERS WHICH IS TO SAY MELODIOUS ENOUGH TO MAKE THE POLITICAL MESSAGE PALATABLE MS NEAR BRINGS A FLOWER CHILD'S SENSIBILITY TO THE '70S '80S AND '90S IF YOU HARBOR A FONDNESS FOR THE '60S YOU'LL PROBABLY FIND THIS AN AMIABLE LITTLE SHOW IF YOU DON'T YOU'LL PROBABLY CONSIDER IT JUST ANOTHER CONSCIOUSNESSRAISING SESSION IF HOLLY NEAR IS AN ACTIVIST IN SEARCH OF A CAUSE CLAUDIA SHEAR HAS JUST ONE CAUSE IN LIFE HERSELF HER ONEWOMAN COMEDY BLOWN SIDEWAYS THROUGH LIFE NEW YORK THEATRE W HER EXHAUSTIVE REALLIFE FAILURES IN THE JOB MARKET IT'S STRETCHING DEFINITIONS TO CALL THIS A PLAY ITS RAPIDFIRE STRING OF ANECDOTES REALLY PLACE IT CLOSER TO STANDUP COMEDY IN ONE BREATH MS SHEAR IS TALKING ABOUT HER STINT AS A TELEPHONE RECEPTIONIST IN A BROTHEL IN THE NEXT SHE'S RELATING HER MISHAPS AS A SCANTILY CLAD EXTRA IN AN AVANTGARDE ITALIAN FILM MS SHEAR FOLLOWS IN THE TRADITION OF COMICS WHO MAKE A CAREER OUT OF BEING LOSERS AND KVETCHERS TAKE THIS JOB AND SHOVE IT SUMS UP HER ATTITUDE TO THE 60ODD JOBS SHE'S HAD THE HUMAN MIND CAN ABSORB ONLY SO MUCH WHINING HOWEVER AND DESPITE SOME DAZZLING WORDPLAY AFTER THE FIRST HALFHOUR MS SHEAR ENDS UP SOUNDING MORE PETULANT THAN PITHY FAMILY SECRETS WESTSIDE THEATRE IS ANOTHER ONEWOMAN AUTOBIOGRAPHICAL SHOW THAT IS KISSING COUSIN TO STANDUP COMEDY SHERRY GLASER PLAYS FIVE ODDBALL CHARACTERS IN A FAMILY OF NEW YORK JEWS TRANSPLANTED TO CALIFORNIA THERE'S THE NEUROTIC MOTHER THE STAID FATHER THE RADICALLESBIAN OLDER SISTER THE BELLICOSE GRUNGY ADOLESCENT SISTER AND THE GRANDMA WHO FINDS ROMANCE MS GLASER IS A VERSATILE ACTRESS AND BRINGS EACH CHARACTER'S QUIRKS TO LIFE WITH A GREAT DEAL OF AFFECTION AND ONLY MINIMAL ONSTAGE COSTUME CHANGES THE PROBLEM IS THE SLIM MATERIAL WHICH SHE WROTE WITH GREG HOWELLS AFTER THE FIRST COUPLE OF JOKES ABOUT NATURAL CHILDBIRTH OR GERIATRIC LOVEMAKING OR SUNRISE SUNSET IT'S ENOUGH TO MAKE THIS GOY THINK ENOUGH ALREADY A THEATERGOER COULD BE FORGIVEN FOR HARBORING THE SAME SENTIMENT ABOUT CATHERINE BUTTERFIELD'S NEW PLAY SNOWING AT DELPHI WPA THEATRE SET NOT FAR FROM SYRACUSE AND TROY AND UTICA IN CENTRAL NEW YORK STATE'S CLASSICAL BELT IT'S ABOUT THREE COUPLES WHO ARE SPENDING CHRISTMAS TOGETHER TRYING NOT TO REMEMBER IT'S CHRISTMAS ONE COUPLE HAS JUST LOST A BABY ANOTHER IS ABOUT TO HAVE ONE AND A THIRD BICKERS ENDLESSLY AND AMUSINGLY SNOWING AT DELPHI IS TOO EARNEST AND FAR TOO CUTE TO RING ENTIRELY TRUE BUT IT NONETHELESS IS A SERIOUS AND OCCASIONALLY ENTERTAINING CONTEMPLATION OF OLD FRIENDS AND NEW LOVES MS BUTTERFIELD IS A COMER JOINED AT THE HEAD AT THE MANHATTAN THEATER CLUB LAST SPRING TOOK UP RELATED THEMES BUT IN A MORE POLISHED AND MORE FOCUSED WAY AND IN A FASTPACED IMAGINATIVELY STAGED PRODUCTION THAT PUTS DELPHI'S DREARY STAGING TO SHAME OF THE FIVE SHOWS REVIEWED HERE SNOWING AT DELPHI IS THE MOST AMBITIOUS AND MS BUTTERFIELD IS THE ONLY DAME WHOSE NEXT EFFORT I EAGERLY AWAIT 9310260113 931026 BENTSEN WANTS TO BOOST BANKS' LINES ABROAD NATIONAL BANKING FOREIGN MARKETS CONSOLIDATION OF REGULATORS SOUGHT BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TREASURY SECRETARY LLOYD BENTSEN URGED CONGRESS TO PASS A LAW DESIGNED TO OPEN MORE FOREIGN MARKETS TO US BANKS AND OTHER FINANCIALSERVICE COMPANIES IN ADDITION MR BENTSEN ANNOUNCED THAT THE CLINTON ADMINISTRATION FAVORS NATIONWIDE BANKING AND THE CONSOLIDATION OF BANKREGULATORY AGENCIES TWO CHANGES DESIGNED TO REDUCE COSTS AND BOOST EFFICIENCY AS REPORTED PRESIDENT CLINTON SIGNED OFF ON THESE PROPOSALS LAST WEEK BUT MR BENTSEN SUGGESTED THAT THE ADMINISTRATION WILL MOVE CAUTIOUSLY TOWARD THESE CHANGES HE GAVE NO SENSE OF A TIMETABLE AND ENCOURAGED CONGRESS TO COMPLETE FUNDING OF THE SAVINGSANDLOAN CLEANUP FINISH WORK ON PRESIDENT CLINTON'S COMMUNITYDEVELOPMENT PROPOSAL AND PASS THE FAIR TRADE IN FINANCIAL SERVICES ACT BEFORE ATTACKING THE INTERSTATE AND REGULATORY CHANGES WE MUST CHANGE OUR BANKING SYSTEM IN A CAREFUL DELIBERATE MANNER TO GET READY FOR THE NEXT CENTURY MR BENTSEN SAID IN A SPEECH TO THE CENTER FOR NATIONAL POLICY A NONPARTISAN THINKTANK WE'RE OPERATING WITH LAWS AND REGULATIONS MADE FOR ANOTHER TIME IN AMERICA IT WAS MR BENTSEN'S FIRST MAJOR ADDRESS ON BANKING IN A RECENT INTERVIEW THE TREASURY SECRETARY SAID HE PLANS TO SPEND MORE TIME ON BANKING MATTERS AND IT MAY TAKE THE FORMER SENATOR'S DIRECT INVOLVEMENT TO WIN CONGRESSIONAL PASSAGE OF INTERSTATE BANKING AND REGULATORY CONSOLIDATION TWO TRICKY POLITICAL ISSUES THE FAIR TRADE IN FINANCIAL SERVICES ACT HAS BEEN STALLED IN CONGRESS FOR YEARS PARTLY BECAUSE THE FEDERAL RESERVE BOARD HAS OPPOSED THE PROPOSAL THE BILL WOULD ALLOW THE US TO BLOCK THE EXPANSION OF FOREIGN BANKS AND FINANCIALSERVICE COMPANIES IN THE US IF THE TREASURY FINDS THAT THE HOME COUNTRIES OF THOSE COMPANIES ARE RESTRICTING THE ACCESS OF AMERICAN CONCERNS THE ADMINISTRATION'S STRONG SUPPORT OF THE MEASURE COMBINED WITH CONCERNS OVER THE ABILITY OF US COMPANIES TO COMPETE OVERSEAS SHARPLY BOOSTS THE CHANCE THAT THE MEASURE WILL PASS PROBABLY NEXT YEAR MR BENTSEN STRESSED THAT THE LEGISLATION WOULD STRENGTHEN THE US HAND IN CURRENT NEGOTIATIONS WITH JAPAN AS WELL AS IN EFFORTS TO COMPLETE A NEW GLOBAL TRADE AGREEMENT THE US IS TRYING TO GET JAPAN TO INCREASE ACCESS FOR AMERICAN PENSION FUND MANAGERS AND UNDERWRITERS OF CORPORATE SECURITIES WE WILL NOT ASSURE COUNTRIES THAT KEEP THEIR MARKETS CLOSED THE RIGHT TO EXPAND OPERATIONS HERE OR TO TAKE ADVANTAGE OF NEW POWERS OR BENEFIT FROM FUTURE REFORMS MR BENTSEN SAID ALTHOUGH MR BENTSEN ENDORSED INTERSTATE BANKING HE MADE IT CLEAR THAT THE ADMINISTRATION ISN'T YET READY TO WORK URGENTLY FOR THE MEASURE CHANGE WILL NOT HAPPEN OVERNIGHT HE SAID TO AN AUDIENCE THAT INCLUDED BANK LOBBYISTS REGULATORS AND CONGRESSIONAL STAFFERS A NUMBER OF COMPLEX POLICY ISSUES MUST BE WORKED THROUGH MR BENTSEN SAID THE ADMINISTRATION IS PREPARED TO LET BANKING ORGANIZATIONS CONVERT EXISTING MULTIBANK MULTISTATE OPERATIONS INTO A SINGLE BANK MULTIBRANCH OPERATION THIS CHANGE WOULD PRODUCE IMMEDIATE SAVINGS FOR LARGE BANKING ORGANIZATIONS SUCH AS CITICORP BANKAMERICA CORP AND NATIONSBANK CORP THAT HAVE AGGRESSIVELY BUILT LARGE NETWORKS MR BENTSEN DIDN'T SPECIFICALLY MENTION ANOTHER INTERSTATE ISSUE THE REPEAL OF THE 1956 DOUGLAS AMENDMENT WHICH PREVENTS BANK HOLDING COMPANIES FROM ACQUIRING BANKS OUTSIDE THEIR HOME STATES WITHOUT APPROVAL FROM THE STATE WHERE THE BANK IS BEING ACQUIRED HOWEVER HE STRESSED THAT STATES WOULD BE ABLE TO DECIDE IF THEY WANT OUTOFSTATE BANKS TO ENTER THEIR MARKETS IN THE PAST BOTH THE HOUSE AND SENATE HAVE PASSED PROVISIONS THAT WOULD REPEAL THE DOUGLAS AMENDMENT BUT GIVE STATES THE RIGHT NOT TO PARTICIPATE IN THE NEW NATIONWIDE ARRANGEMENT BUT THE LEGISLATION HAS FAILED TO PASS CONGRESS AS A WHOLE ONE OF THE REASONS INTERSTATE PROPOSALS HAVE FAILED TO PASS CONGRESS IS BECAUSE INSURANCE AGENTS HAVE LOBBIED TO ATTACH PROVISIONS LIMITING INSURANCE SALES BY BANKS TREASURY OFFICIALS SAID YESTERDAY THAT CONGRESS SHOULD CONSIDER INTERSTATE BANKING ON ITS OWN MERITS WITHOUT REFERENCE TO INSURANCE IN HIS SPEECH MR BENTSEN SUGGESTED THAT THE ADMINISTRATION ISN'T YET PREPARED TO PROPOSE LEGISLATION THAT WOULD ALLOW BANKS TO OFFER A BROADER RANGE OF FINANCIAL SERVICES IN COMPETITION WITH BROKERS AND INSURANCE COMPANIES OUR PREFERENCE IS TO BUILD UPON WHAT THE MARKETPLACE HAS CREATED RATHER THAN REINVENTING THE BANKING BUSINESS HE SAID MR BENTSEN ALSO GAVE FEW DETAILS ON HOW FAR THE ADMINISTRATION WILL GO IN TRYING TO CONSOLIDATE THE FOUR BANK REGULATORY AGENCIES HOWEVER HE DID SEEM TO REJECT A PROPOSAL BY THE CHAIRMAN OF THE HOUSE BANKING COMMITTEE TO SET UP ONE INDEPENDENT REGULATOR ANY NEW INSTITUTION MUST REMAIN RESPONSIVE TO THE ELECTORATE WITH REGARD TO POLICY THE TREASURY CHIEF SAID BANKING POLICY IS SUCH A VITAL COMPONENT OF ECONOMIC POLICY THAT THOSE WHO DIRECT THE POLICY MUST BE ABLE TO AFFECT ITS IMPLEMENTATION IN HIS SPEECH MR BENTSEN DID HAVE SOME GOOD NEWS FOR SMALL BANKS HE SAID THAT A REGULATORY PROPOSAL TO REWRITE COMMUNITYREINVESTMENT RULES WOULD TRY TO ALLEVIATE THE DISPROPORTIONATE BURDEN THAT CURRENT REQUIREMENTS HAVE ON COMMUNITY BANKS 9310260112 931026 WHO'S NEWS FERRO CORP FERRO CORP CLEVELAND FRANK A CARRAGHER 61 YEARS OLD WILL RETIRE FROM HIS POST AS SENIOR VICE PRESIDENT OF CHEMICALS AND POLYMERS AT THIS PRODUCER OF COATINGS CERAMICS CHEMICALS AND PLASTICS HIS RETIREMENT IS EFFECTIVE MARCH 31 1994 A SUCCESSOR HASN'T BEEN NAMED YET 9310260111 931026 SMALL STOCK FOCUS SAGGING COMMUNICATIONS INSURANCE AND TRANSPORTATION ISSUES LOWER PRICES BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SAGGING COMMUNICATIONS INSURANCE AND TRANSPORTATION STOCKS ATE AWAY AT SMALLCOMPANY PRICES ERASING EARLY STRENGTH ANALYSTS SAID INVESTORS ALSO SWARMED TO LOAD UP ON CYCLICAL STOCKS AND CONTINUED SELLING OFF MANY OF THE SMALLER GROWTH ISSUES THAT HAD JUMPED TO LOFTY LEVELS IN RECENT WEEKS THE RUSSELL 2000 INDEX WHICH MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION ISSUES TRADED OVER THE COUNTER AND ON THE MAJOR EXCHANGES SLID 027 POINT TO END AT 25552 ON NASDAQ THE COMPOSITE INDEX FELL 293 POINTS OR 038 TO END AT 76975 NASDAQ DECLINERS TOPPED ADVANCERS 1556 TO 1342 ON NASDAQ NATIONAL MARKET VOLUME OF 241091100 SHARES AND TOTAL VOLUME OF 283510200 ON FRIDAY NATIONAL MARKET VOLUME REGISTERED 297628800 SHARES AND TOTAL VOLUME HIT 361739000 SMALLER STOCKS WERE SOFTER IN MORE OF THE PROFITTAKING THAT STARTED EIGHT OR 10 DAYS AGO SAID WILLIAM SULYA HEAD OF OVERTHECOUNTER TRADING AT AG EDWARDS & SONS INC THE SELLING CONTINUES TO FEED ON ITSELF IN A GOOD HEALTHY PULLBACK MR SULYA OF AG EDWARDS SAID INVESTORS ALREADY ARE TRYING TO POSITION THEIR PORTFOLIOS FOR THE END OF THE YEAR AND ARE SCOOPING UP ECONOMICALLY SENSITIVE ISSUES FOUND TO A LARGE EXTENT ON THE BIG BOARD GOOD REPORTS ON SEPTEMBER EXISTINGHOME SALES AND MIDOCTOBER AUTO SALES LIFTED BLUECHIP STOCKS PUSHING THE DOW JONES INDUSTRIAL AVERAGE TO A RECORD OF 367361 PAST ITS PREVIOUS RECORD SET AUG GREGORY P NIE A TECHNICAL ANALYST AT KEMPER SECURITIES INC SAID A ROTATION IS IN FULL SWING WITH LARGER ISSUES NOW OUTPERFORMING SMALLER ONES AFTER LAGGING BEHIND FOR WEEKS FALLING BOND PRICES CONTRIBUTED TO SMALLCAP WEAKNESS NIE SAID THE TREASURY'S 30YEAR BOND FELL MORE THAN 1/2 POINT PUSHING ITS YIELD UP TO ABOUT 6 ALTHOUGH IT HAD BEEN HIGHER AT INTRADAY SPECTRUM INFORMATION TECHNOLOGIES INC WAS THE DAY'S MOST ACTIVE NASDAQ ISSUE WITH 86 MILLION SHARES CHANGING HANDS UP FROM THE THREE MILLION SHARES TRADED ON AN AVERAGE DAY THE MANHASSET NY DATA TRANSMISSION TECHNOLOGY COMPANY SLIPPED 1 3/8 TO 8 1/2 OTHER COMMUNICATIONS STOCKS ALSO WERE WEAKER AND THE NASDAQ UTILITY INDEX FELL 1095 POINTS TO 112049 IDB COMMUNICATIONS GROUP INC CULVER CITY CALIF WAS DOWN 2 1/2 TO 49 DAVOX CORP BASED IN BILLERICA MASS SLIPPED 3/4 TO 4 1/2 AND DALLASBASED INTERVOICE INC WAS DOWN 1 1/4 TO 13 3/4 A SMITH BARNEY SHEARSON DOWNGRADE TO OUTPERFORM FROM BUY COST INTEGON CORP'S STOCK 2 1/2 POINTS IT FINISHED AT 22 ON THE BIG BOARD THE WINSTONSALEM NC COMPANY UNDERWRITES AND MARKETS NONSTANDARD AUTOMOBILE INSURANCE IN THE TRANSPORTATION GROUP WISCONSIN CENTRAL TRANSPORTATION CORP ROSEMONT ILL FELL 1 1/2 TO 47 1/2 TNT FREIGHTWAYS CORP ALSO OF ROSEMONT EASED 7/8 TO 21 5/8 AND AMERICAN FREIGHTWAYS INC BASED IN HARRISON ARK GAVE UP 3/4 TO 19 BUT AIRBORNE FREIGHT GAINED 3 TO 30 1/4 ON THE NEW YORK STOCK EXCHANGE THE SEATTLE PROVIDER OF PACKAGE DELIVERY SERVICES SAID ITS THIRDQUARTER EARNINGS IMPROVED TO 53 CENTS A SHARE FROM THE SEVEN CENTS POSTED A YEAR EARLIER THE NET INCOME FIGURE CAME IN WELL ABOVE ANALYSTS' EXPECTATIONS OF 40 CENTS IN OTHER EARNINGS NEWS ROSS SYSTEMS INC REDWOOD CITY CALIF PLUNGED 4 1/4 TO 7 1/4 AFTER REPORTING A FISCAL FIRSTQUARTER LOSS OF 12 CENTS A SHARE IN THE YEAREARLIER PERIOD THE SOFTWARE CONCERN POSTED A LOSS OF 66 CENTS BIG BOARDTRADED TOMMY HILFIGER CORP SAID IT EARNED 43 CENTS A SHARE IN ITS LATEST SECOND FISCAL QUARTER UP FROM 32 CENTS LAST YEAR THE HONG KONGBASED MEN'S SPORTSWEAR DESIGNER ROSE 2 1/2 TO 27 1/2 ANALYSTS HAD FORECAST EARNINGS OF 33 CENTS FOR THE PERIOD MORNINGSTAR GROUP TUMBLED 2 TO 7 THE DALLAS SPECIALTY FOOD PRODUCTS CONCERN SAID LATE FRIDAY THAT ITS THIRDQUARTER EARNINGS COULD BE MORE THAN 50 LOWER THAN THE 10 CENTS A SHARE REPORTED A YEAR AGO THE COMPANY ADDED THAT ITS FOURTHQUARTER RESULTS ARE UNLIKELY TO REACH EARNINGS OF 34 CENTS POSTED LAST YEAR CS FIRST BOSTON ANALYST MICHAEL J MAUBOUSSIN CUT HIS INVESTMENT RATING ON MORNINGSTAR TO HOLD FROM BUY THIS MORNING ENERGY VENTURES HOUSTON JUMPED 2 TO 18 1/4 THE MAKER OF OILFIELD TUBULAR PRODUCTS REPORTED THIRDQUARTER NET INCOME OF 18 CENTS A SHARE UP FROM ONE CENT A SHARE A YEAR AGO ANALYSTS SURVEYED BY IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM HAD ON AVERAGE ESTIMATED THE COMPANY'S LATEST THIRDQUARTER EARNINGS AT 11 CENTS ON THE ACQUISITION FRONT NEWORLD BANCORP INC SURGED 4 1/4 TO 33 THE BOSTON COMPANY AND ITS NEWORLD BANK UNIT WILL BE ACQUIRED BY CITIZENS FINANCIAL GROUP FOR 1443 MILLION OR 3550 A SHARE NASDAQ NATIONAL MARKET STOCKS THAT HAVE REACHED NEW HIGHS FOR THE YEAR TO DATE TOTAL 129 WHILE 41 ISSUES HAVE REACHED NEW LOWS 9310260110 931026 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS OCT 26NOV 8 THE FIRST MAJOR ART EXHIBITION TO BE SENT FROM PORTUGAL TO THE US THIS COLLECTION OF SOME 120 WORKS FEATURES OPULENT ART OF THE 18TH CENTURY THE EXHIBIT INCLUDES A 66FOOT HANDPAINTED TILE FRIEZE VIEW OF LISBON DEPICTING THE CAPITAL'S SKYLINE AS IT APPEARED IN THE EARLY 1700S AND AN ELABORATELY DECORATED AND GILDED COACH CREATED FOR A CELEBRATED AMBASSADORIAL PROCESSION IN ROME IN 1716 THEMES INCLUDE PRIVATE LIFE SCIENTIFIC INSTRUMENTS FROM THE UNIVERSITY OF COIMBRA THE ROYAL COURT AND ARTS IN THE SERVICE OF RELIGION NATIONAL GALLERY OF ART FOURTH STREET AT CONSTITUTION AVENUE NW NOV 7FEB 6 202 7374215 ONE OF TWO EXHIBITS AT THE MUSEUM CELEBRATING THIS 20THCENTURY AMERICAN MINIMALIST IT INCLUDES 24 WORKS MANY APPEARING IN THE US FOR THE FIRST TIME EIGHTEEN OF THESE DRAWINGS ARE LARGE SCULPTURAL WORKS THAT USE THE FLOOR MUCH AS A PAINTER WOULD USE A CANVAS WHILE MANY MINIMALISTS REDUCED THEIR WORKS TO SIMPLE ABSTRACT IMAGES THAT APPEARED TO BE MACHINEMADE FROM INDUSTRIAL MATERIALS MR TUTTLE'S WORKS ARE HANDMADE AND MAKE USE OF FRAGILE NATURAL OR HOUSEHOLD ITEMS INDIANAPOLIS MUSEUM OF ART 1200 W 38TH ST THROUGH JAN 2 THIS COLLECTION OF ABOUT 60 OUTFITS DATING FROM 1837 TO 1914 INCLUDES WEDDING GOWNS STYLISH AFTERNOON AND RECEPTION DRESSES AND EVENING WEAR FROM ENGLAND FRANCE JAPAN AND THE US BY INTERNATIONAL COUTURIERS SUCH AS WORTH DOUCET AND REDFERN WITH SELECTIONS BY US DESIGNERS AS WELL THE 30TH ANNIVERSARY OF THIS FESTIVAL OF CONCERTS LECTURES AND PERFORMANCES WILL FEATURE ORIGINAL FLUXUS ARTISTS IN HISTORICAL AND CONTEMPORARY PROGRAMS AS WELL AS AN EXHIBITION OF POSTERS AND PHOTOGRAPHS THE FIRST FLUXUS FESTIVALS AND CONCERTS IN EUROPE IN 1962 ESTABLISHED FLUXUS AS A MOVEMENT CLOSELY ALLIED WITH 20THCENTURY AVANTGARDE ART AND PERFORMANCE THIS SERIES HAS BEEN ORGANIZED IN CONJUNCTION WITH FLUXUS FESTIVAL CHICAGO 1993 A SERIES OF EXHIBITIONS AND EVENTS BEING HELD THIS FALL AT MAJOR CHICAGO ARTS INSTITUTIONS FLUXUS VIVUS WILL CONSISTS OF A LA CARTE EVENINGS WHERE PATRONS WILL ORDER FROM A MENU OF TITLED WORKS OF MUSIC POETRY AND CONCERTS PERFORMED BY VARIOUS ARTISTS HOSTED BY THE WOMEN'S COMMITTEE OF THE PHILADELPHIA MUSEUM OF ART THIS YEAR'S SHOW FEATURES LEADING ARTISANS MARY JACKSON OF CHARLESTON SC ROBIN KRANITZKY AND JIM OVERSTREET OF RICHMOND VA AND THOMAS HOADLEY OF LANESBOROUGH MASS MS JACKSON IS RENOWNED FOR HER SWEETGRASS BASKETS WHILE MS KRANITZKY AND MR OVERSTREET COLLABORATE ON WEARABLE DIORAMAS INSPIRED BY FOUND OBJECTS PHILADELPHIA CIVIC CENTER 34TH STREET AND CIVIC CENTER BOULEVARD NOV 47 215 6847860 KIROV SOPRANO GALINA GORCHAKOVA SINGS THE TITLE ROLE IN PUCCINI'S MADAME BUTTERFLY ON OPENING NIGHT OCT 29 WITH ITALIAN TENOR FABIO ARMILIATO AS PINKERTON AND RUSSIAN BARITONE IGOR MOROZOV AS SHARPLESS AMERICAN SOPRANO FRANCES GINSBERG SINGS CIOCIOSAN IN THREE PERFORMANCES LATER IN THE SEASON AND CHINESE SOPRANO GUIPING DENG WILL MAKE HER HOUSTON GRAND OPERA DEBUT IN THE ROLE AS WELL DIRECTED BY VINCE LIOTTA WITH VJEKOSLAV SUTEJ CONDUCTING WORTHAM THEATER CENTER'S BROWN THEATER TEXAS STREET AT SMITH ALSO NOV 2 5 6 10 12 13 14 713 5460200 THE COMPANY'S 38TH SEASON BEGINS NOV 13 WITH DONIZETTI'S ANNA BOLENA SOPRANO NELLY MIRICIOIU SINGS THE TITLE ROLE WITH MEZZOSOPRANO JUDITH FORST AS ANNE BOLEYN'S RIVAL JANE SEYMOUR GERMAN BASS FRANZ HAWLATA SINGS HENRY VIII AND TENOR JORGE LOPEZYANEZ APPEARS AS ANNE'S FIRST LOVE LORD RICHARD PERCY EDOARDO MULLER CONDUCTS AND LOU GALTERIO DIRECTS KENNEDY CENTER OPERA HOUSE ALSO NOV 15 18 20 23 26 AND 28 LOCALLY 202 4167800 ELSEWHERE 180087OPERA 9310260109 931026 INTERNATIONAL FROM COMPUTERS TO TVS JAPAN'S MAKERS OF ELECTRONICS FEEL PAIN OF POOR RESULTS BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S ELECTRONICS INDUSTRY GIANTS ARE PREPARING MORE BAD NEWS MATSUSHITA ELECTRIC INDUSTRIAL CO THE WORLD'S LARGEST CONSUMER ELECTRONICS COMPANY KICKS OFF THE FISCAL FIRSTHALF EARNINGS SEASON TODAY ANALYSTS SAY MATSUSHITA'S EXPECTED RESULTS A 45 PLUNGE IN UNCONSOLIDATED PRETAX PROFIT AND A 67 DECLINE IN UNCONSOLIDATED SALES COMPARED WITH THE YEARAGO PERIOD WILL LIKELY FORESHADOW A STRING OF POOR SHOWINGS THROUGHOUT THE SECTOR TO MANY ANALYSTS IN TOKYO SUCH RESULTS ARE EVIDENCE THAT A THREEYEAR STRETCH OF DECLINING PROFITS AT THE TROUBLED ELECTRONICS COMPANIES ISN'T LIKELY TO BREAK ANY TIME SOON SOME OBSERVERS NOW PREDICT THERE WON'T BE AN UPTURN IN THE INDUSTRY'S EARNINGS UNTIL THE FIRST MONTHS OF 1995 AT THE EARLIEST THE MANAGEMENT AT THESE COMPANIES IS DEPRESSED AND CONFUSED SAYS PETER WOLFF AN ELECTRONICS ANALYST WITH KIDDER PEABODY & CO IN TOKYO THEY REALIZE THEY HAVE TO MAKE CHANGES BUT THEY CAN'T THEY'RE HOPING SOME WIND COMES FROM BEHIND THEIR BACKS TO HELP THEM THROUGH A DIFFICULT PERIOD JAPAN'S ELECTRONICS COMPANIES ARE FACING AN ARRAY OF PROBLEMS HIGH FIXED COSTS A RECESSION THAT HAS PINCHED THE KEY JAPANESE MARKET AND SATURATION IN SUCH PRODUCT LINES AS TELEVISIONS VCRS AND STEREOS FURTHERMORE THESE EXPORTDEPENDENT COMPANIES HAVE WATCHED THE YEN'S VALUE RISE AS MUCH AS 20 AGAINST THE DOLLAR OVER THE PAST YEAR AN INCREASE THAT MAKES JAPANESE PRODUCTS MORE EXPENSIVE OVERSEAS NEVERTHELESS FEW COMPANIES HAVE BEEN ABLE TO MAKE THE TOUGH DECISIONS NEEDED TO RESTORE GROWTH ANALYSTS SAY A LOT OF COMPANIES STILL NEED TO TRIM THE NUMBER OF PRODUCTS THEY MANUFACTURE DOWNSIZE THEIR WHOLE OPERATION AND CONCENTRATE ON HIGHMARGIN ITEMS SAYS CHUCK GOTO AN ANALYST WITH SG WARBURG JAPAN INC IF THAT MEANS 20 TO 30 FEWER PRODUCTS TO SELL THAT MEANS THEY'LL HAVE TO CUT SOME PEOPLE FOR NOW HOWEVER THE COMPANIES ARE SIMPLY SUFFERING NEC CORP HITACHI LTD AND TOSHIBA CORP WILL JOIN THE GLOOMY CHORUS ON THURSDAY WHEN THEY WEIGH IN WITH UNCONSOLIDATED EARNINGS THAT ARE EXPECTED TO SHOW PRETAX PROFIT DECLINES OF 17 TO 54 FOR THE FISCAL FIRST HALF WHICH ENDED SEPT 30 FUJITSU LTD TOO EXPECTS TO REPORT THURSDAY THAT IT SWUNG TO A 15 BILLION YEN 1388 MILLION PRETAX LOSS FROM A 44 BILLION YEN PRETAX PROFIT SUCH GRIM NEWS IS IN LINE WITH OTHER ECONOMIC INDICATORS YESTERDAY FOR INSTANCE JAPAN'S AUTOMOBILE INDUSTRY RELEASED FIGURES SHOWING THAT VEHICLE PRODUCTION IN SEPTEMBER FELL 12 OVER THE SAME MONTH LAST YEAR MARKING THE 12TH CONSECUTIVE MONTHLY DECLINE JAPAN'S MAIN DEPARTMENTSTORE ASSOCIATION MEANWHILE SAID SEPTEMBER SALES AT MAJOR RETAILERS FELL 67 OVER THE YEARAGO PERIOD ANALYSTS SAY THE WOES OF THE ELECTRONICS COMPANIES ARE PARTICULARLY ACUTE THESE COMPANIES DEPEND HEAVILY ON THREE MAJOR PRODUCT AREAS COMPUTERS SEMICONDUCTORS AND CONSUMER ELECTRONICS OF THE THREE ONLY CHIP PRODUCTION IS GROWING THANKS TO A BOOM IN PERSONALCOMPUTER SALES IN THE US GOOD NEWS FROM CHIPMAKING OPERATIONS HOWEVER HAS BEEN MORE THAN OFFSET BY CONTINUING SLUMPS IN COMPUTERS AND CONSUMER ELECTRONICS LIKE INTERNATIONAL BUSINESS MACHINES CORP IN THE US BIG JAPANESE COMPUTER MAKERS HAVE BEEN HIT HARD BY THE DECLINE OF THE HIGHPROFIT MAINFRAME COMPUTER AND A MOVE TOWARD SMALLER CHEAPER COMPUTERS IF THE COMPUTER BUSINESS IS BAD HOWEVER CONSUMER ELECTRONICS RESEMBLES A DISASTER NOWHERE IS THE SLUMP CLEARER THAN IN AKIHABARA TOKYO'S FAMOUS ELECTRONICS RETAIL DISTRICT WHERE SALESMEN WITHOUT CUSTOMERS LOITER AMID RACKS OF TELEVISIONS AND VCRS SOME STORES IN DESPERATION HAVE BEGUN TO GIVE UP SHINTOKU CORP A BIG RETAILER TURNED ONE OF ITS SHOPS INTO A VIDEO ARCADE THIS YEAR THE TACTIC DIDN'T HELP EARLIER THIS MONTH SHINTOKU STARTED BANKRUPTCY PROCEEDINGS PERCENTAGE CHANGE IN SALES AND PRETAX PROFITS FOR JAPAN'S ELECTRONICS GIANTS FOR FIRST HALF OF 1993 ENDED SEPT 30 FROM YEAREARLIER PERIOD 1993 AND PROFIT IN THE SIX MONTHS ENDED SEPT 30 1992 9310260108 931026 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BASIN EXPLORATION INC AN OFFERING OF 34 MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP BROADBAND TECHNOLOGIES INC AN OFFERING OF 3 MILLION COMMON SHARES VIA BEAR STEARNS & CO INC ALEX BROWN & SONS INC AND GOLDMAN SACHS & CO SOMATOGEN INC AN AMENDED OFFERING OF 3 MILLION COMMON SHARES SPIEGEL INC 36 MILLION COMMON SHARES OF CLASS A NONVOTING STOCK VIA ROBERTSON STEPHENS & CO 9310260107 931026 BUSINESS BRIEF RESORTS FILES 2ND RESTRUCTURING PLAN IN FOUR YEARS UNDER BANKRUPTCY CODE RESORTS INTERNATIONAL INC FILED A PREPACKAGED REORGANIZATION PLAN WITH THE SECURITIES AND EXCHANGE COMMISSION AS A PRELUDE TO ITS SECOND RESTRUCTURING IN FOUR YEARS UNDER THE FEDERAL BANKRUPTCY CODE THE PLAN WHICH MAJOR NOTEHOLDERS FIDELITY MANAGEMENT CORP AND TRUST CO OF THE WEST HAVE APPROVED IS EXPECTED TO BE COMPLETED BY EARLY 1994 THE ATLANTIC CITY NJ GAMBLINGANDRESORT CONCERN SAID THE AGREEMENT CALLS FOR RESORTS TO EXCHANGE OWNERSHIP OF ITS CASINO RESORT AND RELATED PROPERTIES ON PARADISE ISLAND THE BAHAMAS ALONG WITH CASH NEW SECURED DEBT AND ABOUT 40 OF RESORTS' EQUITY FOR THE APPROXIMATELY 482 MILLION OF DEBT OWED TO THE NOTEHOLDERS FOLLOWING THE RESTRUCTURING RESORTS' PRIMARY HOLDING WOULD BE ITS CASINO IN ATLANTIC CITY ACCORDING TO ANALYSTS RESORTS WAS FORCED TO REORGANIZE BECAUSE IT COULDN'T SELL ITS PARADISE ISLAND OPERATIONS A CRUCIAL ELEMENT OF THE COMPANY'S RESTRUCTURING IN DECEMBER 1989 RESORTS INTENDED TO SELL THE PARADISE ISLAND HOLDINGS AND REDEEM CERTAIN HIGHYIELD BONDS AT PAR A SERIES OF FACTORS ESPECIALLY THE POOR ECONOMY CONTRIBUTED TO RESORTS HAVING DIFFICULTIES IN SELLING THE CASINO AND RESORT IT APPEARED EARLIER THIS YEAR THAT CAESARS WORLD INC WOULD COME TO THE RESCUE SIGNING AN OPTION AGREEMENT TO PURCHASE THE RESORT BUT EARLIER THIS MONTH SUN INTERNATIONAL LTD A SOUTH AFRICANBASED CASINO OPERATOR EMERGED WITH A MORE DEFINED INTEREST IN THE BAHAMAS RESORT SUN INTERNATIONAL HAS AGREED TO PURCHASE A 60 STAKE IN THE PARADISE ISLAND FACILITIES FOR AN ESTIMATED 75 MILLION SUN INTERNATIONAL HAS ALSO PROPOSED INVESTING 100 MILLION IN THE CASINO AND RESORT NOTEHOLDERS WILL RECEIVE THE REMAINING 40 OF THE PARADISE ISLAND CASINO AND RELATED PROPERTIES IF THE SUN INTERNATIONAL AGREEMENT CLOSES OR THE ENTIRE PROPERTY IF THE AGREEMENT DOESN'T IF THE SUN INTERNATIONAL AGREEMENT DOES GO THROUGH NOTEHOLDERS WOULD RECEIVE 65 MILLION NOTEHOLDERS ALSO WILL RECEIVE EXCESS CASH ON RESORTS' BALANCE SHEETS AS OF THE EFFECTIVE DATE OF THE RESTRUCTURING ESTIMATED AT NOT LESS THAN 30 MILLION 125 MILLION OF NEW 11 SENIOR MORTGAGE NOTES DUE 2003 TO BE ISSUED BY A UNIT OF RESORTS 35 MILLION OF NEW 11375 JUNIOR MORTGAGE NOTES DUE 2004 TO BE ISSUED BY A UNIT OF RESORTS AND ABOUT 40 OF THE COMPANY'S COMMON STOCK A REPRESENTATIVE FOR THE MAJOR NOTEHOLDERS SAID DEBTHOLDERS WOULD RECOVER ABOUT 90 CENTS ON THE DOLLAR UNDER THE PLAN UNDER TERMS OF THE PLAN MERV GRIFFIN WILL REMAIN AS RESORTS' CHAIRMAN AND LARGEST INDIVIDUAL SHAREHOLDER MR GRIFFIN WHO WON CONTROL OF RESORTS FOLLOWING A PROTRACTED BIDDING WAR WITH DONALD TRUMP IN 1988 WILL HOLD ABOUT 12 OF THE COMPANY COMPARED WITH MORE THAN 20 BEFORE THE REORGANIZATION 9310260106 931026 AUTOS CAR FIRMS FLAG DOWN SHOPPERS WITH ARRAY OF NEW LEASE DEALS BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT LEASING A CAR USED TO BE SO SIMPLE BACK WHEN ALMOST NOBODY DID IT NOW THAT LEASING IS INCREASINGLY POPULAR HOWEVER CAR MAKERS ARE BOMBARDING CONSUMERS WITH MORE LEASE DEALS THAN BASKINROBBINS HAS FLAVORS FORD MOTOR CO IS TESTING A LEASE THAT COVERS 12 YEARS AND SIX CARS TOYOTA MOTOR CORP HAS ITS MULTIPLE SECURITY DEPOSIT LEASE GENERAL MOTORS CORP TOUTS A SMARTBUY PLAN THAT OFFERS A SORT OF RENTTOOWN FEATURE BANKS AND CREDIT UNIONS ACROSS THE NATION ALSO OFFER LEASE PACKAGES WITH THEIR OWN TWISTS THERE ARE EVEN LEASES AVAILABLE FOR USED CARS AUTOINDUSTRY EXPERTS SAY CONSUMERS OWE IT TO THEMSELVES TO LEARN ABOUT LEASING ALTHOUGH A CONSUMER WHO LEASES A CAR AND THEN BUYS IT AT THE END OF THE LEASE MAY PAY MORE FOR THE VEHICLE THAN ITS ORIGINAL PURCHASE PRICE DOWN PAYMENTS AND MONTHLY PAYMENTS ARE TYPICALLY LOWER ON LEASES THAN ON CONVENTIONAL CAR LOANS AND WITH THE PRICE OF AN EXTENDED DODGE CARAVAN MINIVAN WORKHORSE OF MIDDLECLASS SUBURBIA STARTING AT 18095 BUYING A CAR IS MORE THAN MANY FAMILIES CAN HANDLE LEASING IS THE WAY OF THE MARKET SAYS CARLOS DAGUE A BEDFORD OHIO CAR DEALER CARS HAVE JUST GOTTEN TOO EXPENSIVE THAT IS WHY LEASING ACCOUNTED FOR 229 OF ALL NEWCAR SALES LAST YEAR UP FROM 142 IN 1987 BY 1998 LEASING WILL MAKE UP 395 OF TOTAL RETAIL CAR SALES SAYS ARTHUR SPINELLA VICE PRESIDENT AND GENERAL MANAGER OF CNW MARKETING/RESEARCH IN BANDON ORE ALL OF OUR PROJECTIONS NEVER SHOWED LEASING GETTING TO THIS POINT THIS QUICKLY MR SPINELLA SAYS WE'RE CONSTANTLY MAKING UPWARD REVISIONS THERE ARE CERTAIN FEATURES SHOPPERS SHOULD LOOK FOR IN A LEASE FOR STARTERS BE SURE TO GET A CLOSED END LEASE THAT GUARANTEES THE VEHICLE'S VALUE AT THE END OF THE CONTRACT SOME FINANCE COMPANIES SELL OPEN ENDED LEASES THAT HOLD THE CONSUMER RESPONSIBLE IF THE CAR'S ACTUAL VALUE AT THE END OF A LEASE IS LOWER THAN THE TARGET SET AT THE AGREEMENT'S START SHOPPERS SHOULD ALSO CHOOSE A SHORTTERM LEASE ANY LEASE CONTRACT LONGER THAN THREE YEARS IS TOO LONG EXPERTS SAY AFTER FOUR OR FIVE YEARS WITH A CAR THE VEHICLE IS MORE LIKELY TO HAVE MECHANICAL PROBLEMS AND THE WARRANTY MAY HAVE EXPIRED AND SINCE AUTO COMPANIES CHARGE EXTRA FEES FOR EXCESSIVE WEAR AND TEAR LESSEES SHOULD KNOW EXACTLY WHAT THAT MEANS CONSUMERS WHO PLAN ON DRIVING A LEASED VEHICLE MORE THAN 15000 MILES A YEAR SHOULD INQUIRE ABOUT PAYING FOR THE EXTRA MILEAGE UP FRONT EXCESS MILEAGE THAT IS PAID AT THE BEGINNING OF A LEASE WILL COST BETWEEN SEVEN CENTS AND NINE CENTS A MILE SAYS MR SPINELLA AT THE END OF A LEASE THE PENALTY WILL BE BETWEEN 12 CENTS AND 15 CENTS A MILE ALSO SHOPPERS SHOULD BE SURE THAT THE COMPANY WILL GIVE A REBATE ON ANY PREPAID MILES THAT HAVEN'T BEEN USED AND WHAT HAPPENS IF A CAR IS STOLEN OR WRECKED WITH SOME LEASES THE LESSEE IS RESPONSIBLE FOR THE DIFFERENCE BETWEEN HOW MUCH IT COSTS TO REPLACE THE CAR AND THE AMOUNT THAT HAS TO BE PAID TO THE LEASING COMPANY TO GET OUT OF THE LEASE EXTRA INSURANCE OFTEN CALLED GAP PROTECTION COVERS THE DIFFERENCE SOME AUTO MAKERS INCLUDING GM FORD AND NISSAN MOTOR CORP OFFER GAP PROTECTION ON ALL LEASES AT NO ADDITIONAL CHARGE GM ALONE OFFERS SHORTTERM LEASES THROUGH THREE SEPARATE PROGRAMS SMARTBUY SMARTLEASE AND SMARTLEASE PLUS UNDER THE SMARTBUY PLAN CUSTOMERS MAKE A DOWN PAYMENT ON A CAR OR TRUCK AND THEN BEGIN LOW MONTHLY LEASE PAYMENTS AT THE END OF THE LEASE THE CUSTOMER IS RESPONSIBLE FOR A FINAL BALLOON PAYMENT UNLESS THE VEHICLE IS RETURNED TO THE DEALER OR REFINANCED FOR INSTANCE A 17000 CHEVROLET LUMINA CAN BE LEASED UNDER SMARTBUY FOR 35 MONTHS FOR 335 A MONTH AFTER A 1500 DOWN PAYMENT AT THE END OF THE CONTRACT CUSTOMERS WHO WANT TO KEEP THE CAR MUST REFINANCE IT OR PAY A LUMP SUM OF 8160 FOR THOSE WHO LIKE TO DRIVE A NEW VEHICLE EVERY TWO OR THREE YEARS SMARTLEASE IS A BETTER DEAL THAN SMARTBUY WITH SMARTLEASE A CUSTOMER IS OBLIGATED TO PAY ONLY A SECURITY DEPOSIT AND MONTHLY PAYMENTS AT THE END OF THE LEASE THE CUSTOMER RETURNS THE VEHICLE TO THE DEALER AND WALKS AWAY THE PLAN APPEALS TO YOUNGER MORE AFFLUENT PEOPLE SAYS GEORGE REGANIS DIRECTOR OF LEASING OPERATIONS AT GM'S FINANCIAL SUBSIDIARY SMARTLEASE PLUS ALLOWS CUSTOMERS TO MAKE ONE LEASE PAYMENT UP FRONT THAT IS LESS THAN THE TOTAL COST OF AN ORDINARY LEASE THIS PROGRAM IS ESPECIALLY POPULAR WITH AFFLUENT RETIREES WHO DON'T WANT THE COMMITMENT OF MONTHLY PAYMENTS GM SAYS OTHER AUTO MANUFACTURERS SUCH AS FORD OFFER SIMILAR PROGRAMS IF A CUSTOMER HAS THE CASH SUCH A PLAN MAKES SENSE WITH SMARTLEASE PLUS A CADILLAC DEVILLE THAT COSTS 35523 CAN BE LEASED FOR 36 MONTHS FOR 19210 A LESSEE WHO CHOOSES TO SPREAD THE PAYMENTS OVER 36 MONTHS WILL PAY A TOTAL OF 21206 BY THE END OF THE LEASE THE TOTAL SAVINGS WITH SMARTLEASE PLUS 1995 NISSAN NOW OFFERS A LEASE PLAN THAT ALLOWS CUSTOMERS TO SWITCH TO A SHORTERTERM LEASE BY MAKING A BIGGER DOWN PAYMENT FOR INSTANCE A CONSUMER MAY LEASE A 1994 ALTIMA FOR 750 DOWN AND 229 A MONTH FOR 36 MONTHS BY ADDING 500 TO THE DOWN PAYMENT THE MONTHLY PAYMENT REMAINS THE SAME BUT THE LEASE IS REDUCED TO TWO YEARS FOR THOSE WHO ARE LOOKING FOR LOW MONTHLY PAYMENTS AND WHO DON'T MIND PARTING WITH A LARGE SUM OF MONEY UP FRONT TOYOTA'S NEW TOUCH LEASE PLAN MIGHT BE THE ANSWER THE PLAN ALLOWS CUSTOMERS TO INCREASE THE SECURITY DEPOSIT TO REDUCE MONTHLY PAYMENTS THE DEPOSIT IS REFUNDED AT THE END OF THE LEASE TOYOTA'S NEW LEASE PLAN ALSO WAIVES THE SECURITY DEPOSIT AND LOWERS THE MONTHLY PAYMENT FOR REPEAT LEASE CUSTOMERS AUTO MAKERS ARE ALSO TESTING SEVERAL NEW LEASING CONCEPTS FORD FOR INSTANCE IS TESTING A LIFETIME LEASE PLAN CUSTOMERS SIGN UP FOR SIX CONSECUTIVE LEASE CONTRACTS THAT LAST TWO YEARS EACH THE MONTHLY PAYMENTS ARE HELD CONSTANT OVER THE LEASE'S 12YEAR LIFE SO FAR THE PLAN IS OFFERED ONLY IN LAS VEGAS THERE'S A LOT OF CONFUSION OUT THERE WHEN IT COMES TO LEASING SAYS GM'S MR REGANIS THAT IS WHY AUTO MAKERS ARE FLOODING DEALERSHIPS WITH BROCHURES THAT EXPLAIN LEASING IN STRAIGHTFORWARD TERMS GM FOR ONE INCLUDES A GLOSSARY OF LEASE TERMS SUCH AS RESIDUAL VALUE AND GUARANTEED PURCHASE PRICE TOYOTA HAS A 1800 TELEPHONE LINE FOR PEOPLE WHO WANT ADDITIONAL INFORMATION ABOUT ITS LEASING PROGRAMS MANUFACTURERS ARE ALSO BOLSTERING TRAINING PROGRAMS FOR DEALERS AND SALESPEOPLE WHAT WE'RE SEEING IS A CULTURAL CHANGE TAKING PLACE 9310260105 931026 WHO'S NEWS FLEET FINANCIAL GROUP FLEET FINANCIAL GROUP PROVIDENCE RI FREDERICK C COPELAND WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FLEET BANK NA THE BANK'S CONNECTICUT SUBSIDIARY MR COPELAND 51 YEARS OLD WHO WAS APPOINTED PRESIDENT OF THE HARTFORDBASED BANK IN JANUARY AND WILL RETAIN THAT TITLE SUCCEEDS ROBERT HIGGINS WHO WAS PROMOTED LAST MARCH TO VICE CHAIRMAN OF FLEET FINANCIAL GROUP A 47 BILLIONASSET BANK HOLDING COMPANY 9310260104 931026 LAW LEGAL BEAT STRAINS OF MULTIPLEDEFENDANT CASE CONFRONT DEFENSE IN BOMBING TRIAL BY MARGARET A JACOBS STAFF REPORTER OF THE WALL STREET JOURNAL DEFENSE LAWYERS APPEAR TO BE OFF TO A ROCKY START IN THE WORLD TRADE CENTER BOMBING TRIAL A CASE THAT WOULD BE HARD TO WIN EVEN UNDER THE BEST OF CIRCUMSTANCES THE LAWYERS FACE THE DIFFICULT TASK OF PLANTING THE SEED OF REASONABLE DOUBT AMONG JURORS SEATED JUST BLOCKS FROM WHERE THE DEFENDANTS' ALLEGED CRIME ONE OF THE WORST ACTS OF TERRORISM IN THE US OCCURRED AFTER THREE WEEKS OF TESTIMONY IN FEDERAL COURT IN NEW YORK ATTORNEYS FOR THE DEFENDANTS SEEM INSTEAD TO HAVE PLANTED A GOOD DEAL OF DOUBT ABOUT THEIR OWN APPROACH TO THE CASE SOME LAWYERS WHO HAVE BEEN OBSERVING THE TRIAL SAY THE DEFENSE OF THE FOUR MEN CHARGED IN THE FEBRUARY EXPLOSION HAS TAKEN ON A MEANDERING ALMOST AMATEURISH CAST HOURS OF COURT TIME HAVE BEEN SPENT ON APPARENTLY MISGUIDED CROSSEXAMINATIONS OF GOVERNMENT WITNESSES AND BY OVEREAGER ATTEMPTS TO FIND TRIVIAL INCONSISTENCIES IN THEIR TESTIMONY MOREOVER THE DEFENSE HAS RAISED EYEBROWS WITH SOME ALTERNATIVE EXPLANATIONS FOR THE EXPLOSION SUCH AS HINTING THAT AN UNFORTUNATE MIX OF CHEMICALS STORED IN THE TRADE TOWERS' BASEMENT RATHER THAN ANY SORT OF BOMB MAY BE TO BLAME WHY HAS THE COURTROOM DEFENSE AT LEAST INITIALLY BEEN SO HARD TO ORCHESTRATE TRIAL LAWYERS SAY THE PROBLEMS STEM PARTLY FROM THE STRAINS OF A MULTIPLEDEFENDANT CASE BUT THE BIGGEST PROBLEM MAY BE THE INEXPERIENCE OF THE DEFENSE COUNSEL IN THE BOMBING CASE ONLY TWO OF THE FOUR MAIN DEFENSE ATTORNEYS HAVE PREVIOUSLY PRACTICED IN FEDERAL COURTS OF THE OTHER TWO ONE WAS A NEW JERSEY STATECOURT PROSECUTOR THE SECOND HAS DONE A MIX OF CIVIL AND CRIMINAL WORK IN MARYLAND ON SEVERAL OCCASIONS THE JUDGE EMBARRASSED THREE OF THE LAWYERS WITH PUBLIC TUTORING IN NOTSOSUBTLE POINTS OF CROSSEXAMINATION EVEN FOR EXPERIENCED DEFENSE LAWYERS MULTIPLEDEFENDANT TRIALS ARE ARDUOUS SUCH TRIALS ENSURE TENSION AMONG DEFENDANTS CRIMINAL LAWYERS SAY FOR INSTANCE WHILE IT MAY BE BENEFICIAL FOR ONE CLIENT TO TESTIFY OR TO HAVE HIS LAWYER CROSSEXAMINE A WITNESS THE SAME TESTIMONY OR QUESTIONING CAN DAMAGE ANOTHER DEFENDANT MOREOVER PROSECUTORS CAN PIT ONE DEFENDANT AGAINST ANOTHER BY CONTROLLING WHEN CERTAIN EVIDENCE IS INTRODUCED SOMETIMES IT IS AS IF THE PROSECUTORS EXPLODE A GRENADE WITHIN THE DEFENSE CAMP SAYS MARK POMERANTZ A CRIMINAL DEFENSE LAWYER IN NEW YORK A SLIP BY ONE DEFENSE ATTORNEY CAN END UP UNDERMINING THE OTHER LAWYERS' EFFORTS IN THE FIRST WEEK OF THE TRIAL FOR INSTANCE SOME OF THE DEFENSE ATTORNEYS POUNCED ON THE UNEXPECTED BUT ULTIMATELY NONESSENTIAL TESTIMONY FROM A SECRET SERVICE AGENT THAT HE HAD SEEN A YELLOW VAN IN THE TRADE CENTER PARKING AREA HARSH QUESTIONING AIMED AT DISCREDITING THE WITNESS PROMPTED SCOWLS FROM CERTAIN JURORS SOME CRIMINAL LAWYERS SAID THE MOVE MAY COME BACK TO HAUNT THE DEFENSE IT MAGNIFIED AN INSIGNIFICANT PIECE OF EVIDENCE SAYS FORDHAM UNIVERSITY LAW SCHOOL PROFESSOR DAN RICHMAN A FORMER PROSECUTOR THE OVERLY COMBATIVE QUESTIONING HAS CONTINUED PARTICULARLY BY HASSEN IBN ABDELLAH THE LEAD ATTORNEY FOR DEFENDANT MAHMUD ABOUHALIMA WHILE HOSTILE QUESTIONING OF GOVERNMENT WITNESSES CAN BE EFFECTIVE IT SHOULD BE DEPLOYED SELECTIVELY IN LONG TRIALS SOME TRIAL LAWYERS SAY IF THEY KEEP DOING IT EVENTUALLY THE JURY WILL DISREGARD IT SAYS PROF RICHMAN THE ATTORNEYS ALSO HAVE FAILED TO CAPITALIZE ON ONE OF THE FEW ADVANTAGES THAT A MULTIPLEDEFENDANT TRIAL GIVES THE DEFENSE THE CHANCE TO DIVIDE UP THE QUESTIONING OF GOVERNMENT WITNESSES WHILE A COORDINATED APPROACH CAN SHARPEN THE IMPACT OF QUESTIONING IN THIS CASE THE LAWYERS HAVE GONE THEIR SEPARATE WAYS ENDING UP WITH REPETITIOUS AND OFTEN UNFOCUSED CROSSEXAMINATIONS THE DEFENSE'S WOES NOW APPEAR TO HAVE THRUST THE MOST EXPERIENCED OF THE LAWYERS AUSTIN V CAMPRIELLO WHO REPRESENTS THE DEFENDANT ACCUSED OF BEING THE LEAST INVOLVED IN THE ALLEGED CONSPIRACY INTO A MORE ACTIVE ROLE THAN HE WOULD PREFER MR CAMPRIELLO A FORMER HIGHRANKING NEW YORK CITY PROSECUTOR AND PRESIDENT OF THE NEW YORK CRIMINAL BAR ASSOCIATION INITIALLY DISTANCED HIMSELF FROM THE OTHER LAWYERS WHILE THE JURY WAS IN THE COURTROOM BUT LAST WEEK APPARENTLY DISCONCERTED BY HIS COLLEAGUES' INEFFECTUAL QUESTIONING OF CERTAIN WITNESSES MR CAMPRIELLO STEPPED IN WITH SYSTEMATIC AND EFFECTIVE CROSSEXAMINATIONS THE ATTORNEYS SO FAR HAVE SHOWN NO CLEAR OR PREDOMINANT THEORY IN DEFENSE OF THE FOUR MEN CHARGED WHILE THE LAWYERS HAVE ATTACKED THE GOVERNMENT'S INVESTIGATION OF THE DISASTER IT ISN'T ALWAYS CLEAR WHETHER THE QUESTIONING IS AIMED AT PORTRAYING THE INVESTIGATION AS BIASED AGAINST THE DEFENDANTS WHO ARE MUSLIM OR AS SIMPLY INEPT OFTEN DURING THE QUESTIONING OF GOVERNMENT WITNESSES THE DEFENSE LAWYERS APPEAR TO BE FISHING FOR AN EXPLANATION THAT MIGHT REGISTER WITH JURORS AND RAISE REASONABLE DOUBTS ABOUT THE GOVERNMENT'S CASE STILL THE CHAOTIC STATE OF AFFAIRS ISN'T NECESSARILY ALL BAD FOR THE DEFENSE SUGGESTS A LONGTIME PROSECUTOR WHO ASKED NOT TO BE IDENTIFIED SOMETIMES A LITTLE CHAOS CAN RATTLE AN OTHERWISE METHODICAL PROSECUTION THIS PROSECUTOR SAYS LAWYERS WHO FLY MORE WILL WORRY LESS A COMMITTEE OF THE BOSTON BAR ASSOCIATION ISSUING WHAT APPEARS TO BE THE FIRST FORMAL OPINION ON THE SUBJECT DECLARED THAT ATTORNEYS WHO EARN FREQUENTFLIER MILES ON BUSINESS TRIPS DON'T USUALLY HAVE TO REIMBURSE THEIR CLIENTS IN FACT THEY USUALLY DON'T EVEN HAVE TO TELL THEIR CLIENTS THE COMMITTEE SAID ETHICS RULES TYPICALLY REQUIRE LAWYERS TO GET A CLIENT'S PERMISSION BEFORE ACCEPTING A GIFT FROM A THIRD PARTY AS A RESULT OF REPRESENTING THAT CLIENT BUT THE BOSTON COMMITTEE SAID FREQUENTFLIER CREDITS DON'T COUNT BECAUSE THE AIRLINES' INCENTIVE PROGRAMS ARE SO WIDELY PUBLICIZED THAT THEY ARE PRESUMED TO BE KNOWN TO SUBSTANTIALLY ALL CLIENTS THE FOURPAGE OPINION ISN'T BINDING ALTHOUGH DISCIPLINARY JUDGES MIGHT TAKE IT INTO CONSIDERATION SAID BOSTON LAWYER RICHARD NEUMEIER WHO IS CHAIRMAN OF THE COMMITTEE THE OPINION CAME IN RESPONSE TO A LAWYER WHO JUST HAD A QUESTION IN HIS OWN MIND ABOUT THE CREDITS HE WAS GETTING MR NEUMEIER SAID THE COMMITTEE NOTED THAT MILEAGE CREDITS UNLIKE MOST OTHER PERKS CAN'T BE CONVERTED TO CASH TRANSFERRED OR USED AT WILL BY THE HOLDER TO REQUIRE A LAWYER TO PAY A CLIENT FOR CREDITS BEFORE THEY ARE USED WOULD BE UNFAIR TO THE LAWYER AND TO REQUIRE ACCOUNTING FOR REDEEMED CREDITS WOULD BE UNDULY BURDENSOME THE COMMITTEE SAID ONE SITUATION WAS UPGRADED TO THE LEVEL OF SOME CONCERN HOWEVER WHEN A LAWYER'S BUSINESS TRAVEL INVOLVES FREQUENT OR LENGTHY TRIPS ON THE SAME AIRLINE FOR THE SAME CLIENT RESULTING IN MILEAGE CREDITS OF SUBSTANTIAL VALUE THE LAWYER IS OBLIGATED TO DISCUSS THE MATTER WITH THE CLIENT OR USE THE CREDIT FOR THE CLIENT'S BENEFIT IF PRACTICAL THE COMMITTEE SAID HOSPITAL SURCHARGE NEW YORK'S METHOD OF ESTABLISHING HOSPITAL RATES IS ILLEGAL A FEDERAL APPEALS COURT RULED IN WHAT WAS ANOTHER SETBACK TO STATES' ATTEMPTS TO SUBSIDIZE THE GROWING COST OF HEALTH CARE UPHOLDING A LOWER COURT THE APPELLATE PANEL IN NEW YORK SAID THAT STATEIMPOSED SURCHARGES WHICH SOMETIMES AMOUNT TO AS MUCH AS 24 OF HOSPITAL BILLS AND ARE PAID BY INSURERS VIOLATE THE FEDERAL EMPLOYMENT RETIREMENT INCOME SECURITY ACT THE LAWSUIT WAS BROUGHT BY A CONSORTIUM OF INSURANCE COMPANIES AND HEALTHMAINTENANCE ORGANIZATIONS TRAVELERS INSURANCE CO VS CUOMO SECOND US CIRCUIT COURT OF APPEALS NO 937132L AMY STEVENS CONTRIBUTED TO THIS COLUMN 9310260103 931026 YOUR MONEY MATTERS ESTATE PLANNERS CAN SAVE TAXES GAIN FLEXIBILITY WITH TRUSTS BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU ARE STARTING TO THINK SERIOUSLY ABOUT ESTATE PLANNING AND WANT EVENTUALLY TO GIVE YOUR HOME TO THE KIDS HERE'S AN IDEA WORTH CONSIDERING IT IS CALLED A PERSONALRESIDENCE TRUST AND IT IS ONE OF THE HOTTEST ESTATETAXSAVING IDEAS TODAY THE TRUSTS TRANSFER A HOME DIRECTLY TO YOUR KIDS AT A SHARPLY DISCOUNTED ESTATETAX COST WHILE YOU REMAIN LIVING IN IT FOR A FIXED PERIOD ANYONE WITH A VALUABLE HOME SHOULD SERIOUSLY CONSIDER DOING THIS SAYS BENJAMIN T WHITE AN ATLANTA ESTATEPLANNING ATTORNEY PEOPLE SHOULDN'T HAVE TO PAY ENORMOUS ESTATE TAXES WHEN THEY INHERIT THEIR PARENT'S HOME ESTATE TAXES BEGIN AT 37 AFTER THE 600000 FEDERAL ESTATETAX EXEMPTION AND RISE RAPIDLY TO A MAXIMUM OF 55 FOR ESTATES VALUED AT 3 MILLION OR MORE MOREOVER FOR PEOPLE WHO THINK REALESTATE VALUES ARE AT ROCK BOTTOM AND LIKELY TO APPRECIATE IN THE FUTURE THIS IS AN EXCELLENT TIME TO TRANSFER A HOME AT A BARGAINBASEMENT COST SAYS MR WHITE BUT THIS APPROACH ALSO HAS A NUMBER OF DRAWBACKS IT ISN'T A PANACEA SAYS SANFORD J SCHLESINGER COCHAIRMAN OF THE TRUSTSANDESTATES DEPARTMENT OF THE NEW YORK LAW FIRM KAYE SCHOLLER FIERMAN HAYS & HANDLER FOR ONE THING IF THE PERSON DIES BEFORE THE TERM OF THE TRUST IS UP THE HOME ENDS UP BACK IN THE PERSON'S ESTATE ALL OF THE ESTATE PLANNING IS FOR NAUGHT ON THE OTHER HAND IF THE PERSON OUTLIVES THE TERM OF THE TRUST AND STILL WANTS TO LIVE IN THE HOME HE OR SHE MUST RENT IT FROM THE CHILDREN AT A FAIR MARKET VALUE A LOT OF PEOPLE AREN'T TOO HAPPY ABOUT LEASING THEIR HOME BACK FROM THEIR KIDS MR SCHLESINGER SAYS AT THE SAME TIME SOME PEOPLE NO MATTER HOW WELLTODO AREN'T COMFORTABLE GIVING AWAY THEIR HOME SAYS PAUL FRIMMER SENIOR PARTNER IN IRELL & MANELLA A LOS ANGELES LAW FIRM IT ISN'T HARD TO UNDERSTAND WHY ESTATE PLANNERS ARE SHOWING A BIG INTEREST IN USING THESE TRUSTS TODAY CONGRESS ELIMINATED MOST WAYS TO PASS WEALTH DOWN TO FUTURE GENERATIONS WITHOUT PAYING LARGE TAXES BUT LAWMAKERS CARVED OUT AN EXEMPTION FOR PERSONAL RESIDENCES IN THE 1990 TAX LAW THE NEW TAX LAW LEFT THESE TRUSTS ALONE WE'RE DOING LOTS OF THESE SAYS GREGG RITCHIE PARTNER AT KPMG PEAT MARWICK IN WOODLAND HILLS CALIF IT'S ONE OF THE ONLY FREEBIES LEFT IN THE TAX LAW HERE'S HOW THE PERSONALRESIDENCE TRUST WORKS SAY A 55YEAROLD MAN HAS A HOME VALUED AT 500000 TODAY AND PLANS ULTIMATELY TO TURN IT OVER TO HIS DAUGHTER BUT HE STILL WOULD LIKE TO LIVE IN THE HOME FOR ANOTHER 15 YEARS IF THE HOME APPRECIATES AT 4 A YEAR IT WILL BE VALUED AT 900472 IN 15 YEARS IF THE MAN IS IN THE TOP ESTATETAX BRACKET HIS DAUGHTER WOULD HAVE TO PAY A COMBINED FEDERAL AND STATE ESTATE TAX OF 495259 ON THE HOME IF THE MAN DIED WITH THE HOME IN HIS ESTATE SAYS LARRY C RABUN NATIONAL DIRECTOR OF ESTATE PLANNING FOR DELOITTE & TOUCHE IN PHILADELPHIA BUT IF THE MAN PLACED HIS HOME IN A PERSONALRESIDENCE TRUST WITH A 15YEAR TERM HIS TAXABLE GIFT TO HIS DAUGHTER WOULD BE VALUED AT A FRACTION OF ITS FAIRMARKET VALUE AT 143975 TODAY MR RABUN SAYS WHY SO LOW THE VALUATION IS ONLY ABOUT A THIRD OF FAIRMARKET VALUE BECAUSE THE DAUGHTER WON'T GET THE HOME FOR 15 YEARS IN ADDITION THE HOME'S GIFTTAX VALUE IS DIMINISHED BECAUSE IF THE MAN DIES BEFORE THE END OF THE TERM THE HOME WILL END UP BACK IN HIS TAXABLE ESTATE APPRECIATION OF THE HOME WHILE IT IS IN THE TRUST IS FREE OF ESTATE TAX THE POTENTIAL ESTATETAX SAVINGS IS A STUNNING 416073 SAYS MR RABUN BUT THERE IS A POSSIBLE FEDERAL INCOMETAX DOWNSIDE TO THIS TACTIC YOU CAN SAVE A HUGE AMOUNT OF FEDERAL ESTATE TAXES WHEN YOU PLACE THE PROPERTY IN THE TRUST BUT YOUR CHILD DOES LOSE ONE VALUABLE THING THE STEP UP IN THE PROPERTY'S COST BASIS FOR CAPITALGAINSTAX PURPOSES IF YOU SIMPLY LEAVE YOUR HOUSE TO YOUR CHILD THE PROPERTY'S COST BASIS IS STEPPED UP TO ITS MARKET VALUE AT THE TIME OF YOUR DEATH IF YOUR CHILD LATER SELLS THE PROPERTY FOR A HIGHER PRICE THE TAXABLE GAIN WILL BE THE DIFFERENCE BETWEEN WHAT HE OR SHE CLEARS ON THE PROPERTY AND THE STEPPEDUP TAX BASIS THIS COULD BE A FAR SMALLER AMOUNT THAN THE DIFFERENCE BETWEEN WHAT THE CHILD CLEARS AND YOUR ORIGINAL TAX BASIS IN THE PROPERTY OR WHAT YOU PAID FOR THE HOME BUT IF YOU GIVE THE HOME TO YOUR CHILD THROUGH A PERSONALRESIDENCE TRUST AND THE CHILD SELLS THE HOME AFTER YOU DIE HE OR SHE MUST USE A PART OF YOUR ORIGINAL TAX BASIS INSTEAD OF THE STEPPEDUP BASIS TO COMPUTE THE INCOME TAX ON THE GAIN EVEN SO YOUR OFFSPRING IS STILL A CLEAR WINNER BY USING A PERSONALRESIDENCE TRUST SAYS GIDEON ROTHSCHILD A NEW YORK ATTORNEY WHO SPECIALIZES IN ESTATE PLANNING ESTATETAX RATES TAKE A FAR BIGGER BITE 37 TO 55 THAN THE 28 CAPITALGAINS TAX HE SAYS CHILDREN WHO WANT TO KEEP THE HOUSE IN THE FAMILY AND NOT SELL IT WON'T BE AFFECTED BY THIS FEDERAL INCOMETAX PROVISION MR RABUN SAYS ESTATE PLANNERS SAY THESE TRUSTS HAVE PLENTY OF FLEXIBILITY IT IS POSSIBLE TO SELL A HOME IN THE TRUST DURING THE TERM OF THE TRUST IF YOU REINVEST THE PROCEEDS IN ANOTHER HOUSE IN TWO YEARS SAYS WILLIAM BRENNAN A PARTNER IN THE WASHINGTON OFFICE OF ERNST & YOUNG AND YOU CAN USE A PRINCIPAL RESIDENCE OR A VACATION HOME MR BRENNAN SAYS SOME OF THE DRAWBACKS CAN EVEN WORK OUT TO BE BENEFITS IF YOU OUTLIVE THE TERM OF YOUR TRUST AND HAVE TO PAY YOUR CHILD RENT THAT IS ANOTHER WAY TO TRANSFER MONEY OUT OF YOUR ESTATE TO YOUR CHILDREN WITHOUT PAYING ESTATE TAX ON IT SAYS MR WHITE THE ATLANTA ATTORNEY THE COST OF SETTING UP A PERSONALRESIDENCE TRUST VARIES DEPENDING ON HOW COMPLEX THE SITUATION IS FOR A TYPICAL CASE THE GOING RATE FOR THE LEGAL WORK IN NEW YORK IS 2500 SAYS MR ROTHSCHILD ACCOUNTING FEES AND APPRAISAL FEES WOULD BE EXTRA IF YOU'RE GOING TO DO THIS IT IS A GOOD IDEA TO GO TO AN ATTORNEY WHO SPECIALIZES IN ESTATE PLANNING SO ALL OF THE VARIOUS CONTINGENCIES CAN BE WRITTEN INTO THE TRUST DOCUMENT PROFESSIONALS SAY COMPARING THE ESTATETAX CONSEQUENCES FOR A 55YEAROLD MAN OF CONTINUING TO HOLD HIS 500000 HOME UNTIL HE DIES OR GIVING IT TO HIS DAUGHTER BY DONATING IT TO A PERSONALRESIDENCE TRUST THAT EXPIRES WHEN HE IS 70 9310260102 931026 WHO'S NEWS INNOVET INC INNOVET INC WEST PALM BEACH FLA ROLAND M HENDRICKSON WAS NAMED CHAIRMAN AND ROBERT M BOOK WAS ELECTED TO THE BOARD OF THIS BIOTECHNOLOGY COMPANY INCREASING THE NUMBER OF DIRECTORS TO EIGHT MR HENDRICKSON 70 YEARS OLD WAS PREVIOUSLY VICE CHAIRMAN AND SUCCEEDS DAVID F MYERS 57 WHO RETIRED MR HENDRICKSON WAS FORMERLY A CORPORATE VICE PRESIDENT OF PFIZER INC AND PRESIDENT OF THE COMPANY'S AGRICULTURAL DIVISION MR BOOK 64 IS PRESIDENT OF AGRIVISTA INC AN INDIANAPOLISBASED AGRICULTURAL AND FOOD PROCESSING MARKETING SERVICES FIRM 9310260100 931026 JOHN LINDSAY'S REVENGE ON NEW YORK BY JOHN H FUND QUEENS NY WITH THE RECENT ELECTIONS OF RICHARD RIORDAN IN LOS ANGELES AND BRET SCHUNDLER IN JERSEY CITY REPUBLICANS ARE STARTING TO WIN URBAN MAYORAL RACES NEXT WEEK FORMER FEDERAL PROSECUTOR RUDOLPH GIULIANI IS AT LEAST AN EVEN BET TO BECOME NEW YORK CITY'S THIRD REPUBLICAN MAYOR IN 60 YEARS SO WHY ARE MANY NEW YORK CONSERVATIVES UNHAPPY A BIG REASON IS THE MEMORY OF THE CITY'S LAST GOP MAYOR JOHN LINDSAY IN 1965 HE RAN ON A FUSION TICKET THAT UNITED THE REPUBLICAN AND LIBERAL PARTIES HE WON WITH 46 OF THE VOTE DEFEATING A DEMOCRATIC MACHINE CANDIDATE WITH 41 THE REMAINING 13 WENT TO WILLIAM F BUCKLEY JR THE ERUDITE COLUMNIST WHO RAN UNDER THE CONSERVATIVE PARTY BANNER DENOUNCING MR LINDSAY AS A LIBERAL WHO WOULD BE THE WORM THAT SPOILED THE BIG APPLE HE WAS MUCH OF NEW YORK'S AGONIZING DECLINE CAN BE TRACED TO MR LINDSAY'S FREESPENDING WAYS AND CAVEINS TO MUNICIPAL UNIONS SHORTLY AFTER HE LEFT OFFICE IN 1974 THE CITY AVOIDED BANKRUPTCY ONLY BECAUSE NO ONE WAS WILLING TO USE THAT TERM TO DESCRIBE ITS CONDITION POLITICALLY MR LINDSAY DISCREDITED THE GOP IN 1971 HE FINALLY BECAME A DEMOCRAT AND RAN A DISMALLY UNSUCCESSFUL RACE FOR PRESIDENT MANY CONSERVATIVES FEAR THAT RUDOLPH GIULIANI'S 1993 RACE IS PART OF SOME BACK TO THE FUTURE TIME WARP MR GIULIANI IS ALSO THE CANDIDATE OF BOTH THE REPUBLICAN AND LIBERAL PARTIES HE TELLS VOTERS THAT TICKET CAN PRODUCE THE KIND OF CHANGE NEW YORK CITY SAW WITH FIORELLO LA GUARDIA AND WITH JOHN LINDSAY INDEED EARLIER THIS YEAR MR GIULIANI SAID MR LINDSAY WAS THE LAST GREAT MAYOR NEW YORK CITY HAD HERB LONDON A PROFESSOR WHO WON 21 OF THE VOTE AS A CONSERVATIVE PARTY CANDIDATE FOR GOVERNOR IN 1990 AND IS RUNNING FOR THE GOP GUBERNATORIAL NOMINATION NEXT YEAR HOSTED A RECEPTION FOR MR GIULIANI AT HIS HOME HE TRIED TO APPEAL TO CONSERVATIVES BUT WASN'T AT ALL CONVINCING MR LONDON RECALLS NEW YORK CITY'S STILL FILLED WITH ROCKEFELLER REPUBLICANS AND GIULIANI IS THE HEIR TO THAT TRADITION MR LONDON IS SUPPORTING GEORGE MARLIN A 41YEAROLD MUNICIPAL BOND EXPERT FROM QUEENS WHO IS UPHOLDING THE BUCKLEY TRADITION OF REBELLION AS THE CONSERVATIVE AND RIGHTTOLIFE NOMINEE FOR MAYOR MR MARLIN SAYS THAT NEW YORK CITY IS ON A FISCAL ECONOMIC AND CULTURAL TREADMILL TO OBLIVION AND THAT A MAYOR GIULIANI WOULD LIKELY JUMP ON THAT TREADMILL RATHER THAN STOP IT HE WON'T END RENT CONTROL EVEN FOR LUXURY APARTMENTS AND OPPOSES SCHOOL VOUCHERS WHILE AT THE SAME TIME HE FAVORS HANDING OUT CONDOMS IN PUBLIC SCHOOLS AND WAS AWOL IN FIGHTING THE RADICAL RAINBOW CURRICULUM SAYS MR MARLIN WITH HIS JACKHAMMERSPEED DELIVERY MR MARLIN HAS CREATED SOMETHING OF A SPLIT AMONG NATIONAL CONSERVATIVES HE HAS BEEN ENDORSED BY FORMER REAGAN CABINET OFFICIALS BILL BENNETT AND ED MEESE FORMER DELAWARE GOV PETE DU PONT AND BILL KRISTOL CHIEF OF STAFF TO FORMER VICE PRESIDENT DAN QUAYLE BUT JACK KEMP AND NEWT GINGRICH THE FUTURE GOP HOUSE LEADER HAVE BACKED MR GIULIANI THEY REASON THAT A GIULIANI VICTORY WILL AT LEAST CRIPPLE THE DEMOCRATIC MACHINE AND THAT NEW YORK'S DISMAL FISCAL FUTURE WILL FORCE A MAYOR GIULIANI TO PURSUE SENSIBLE POLICIES THEY MAY BE RIGHT NEW YORK'S PERCAPITA SPENDING IS 209 HIGHER THAN THE AVERAGE FOR OTHER CITIES ITS POPULATION OF 11 MILLION WELFARE RECIPIENTS IS THE EQUIVALENT OF AMERICA'S EIGHTHLARGEST CITY TO PAY FOR ITS TURBOCHARGED SPENDING MAYOR DINKINS RAISED TAXES AND FEES IGNORING A CITY COMPTROLLER'S OFFICE REPORT THAT CORRECTLY PREDICTED THAT SUCH INCREASES WOULD LEAD TO THE LOSS OF 250000 JOBS DESPITE THE DINKINS TAX HIKES NEW YORK WILL FACE A 2 BILLION DEFICIT IN EACH OF THE NEXT THREE YEARS THE CITY ON THE EDGE OF AN ABYSS MUST EITHER TOPPLE FORWARD OR MOVE BACK MR GIULIANI PROPOSES TAKING SOME BABY STEPS BACK HE TALKS ABOUT PHASING OUT SOME BUSINESS TAXES AND REDUCING CITY SPENDING BY 10 OVER FOUR YEARS AND HE MUMBLES ABOUT CONTRACTING OUT SOME SERVICES BUT THE CITY IS ON THE CRITICAL LIST AND IT NEEDS MORE RADICAL REFORM IF IT IS TO RECOVER AND NOT MERELY STABILIZE BUT MR GIULIANI'S STRATEGY IS TO AVOID ISSUES OTHER THAN CRIME DUCK OUT OF ALL DEBATES THAT INCLUDE MR MARLIN AND LET THE CAMPAIGN CLOCK RUN OUT IT WILL PROBABLY WORK POLLS SHOW MR DINKINS NARROWLY AHEAD BUT THE 1989 RACE PROVED THAT SOME VOTERS ARE UNWILLING TO TELL POLLSTERS THEY AREN'T SUPPORTING A BLACK CANDIDATE IN A RACE AGAINST AN INCUMBENT AS FLAWED AS MR DINKINS MOST UNDECIDED VOTERS WILL SULLENLY VOTE FOR MR GIULIANI BECAUSE THE RACE WILL BE PERCEIVED AS CLOSE IN THE POLLS ANTIDINKINS VOTERS WILL PASS OVER THE MEDIASTARVED MR MARLIN HIS VOTE PROBABLY WON'T REPRESENT THE MARGIN OF DIFFERENCE MR GIULIANI WILL LIKELY ACHIEVE HIS AMBITION BUT HE WILL LACK ANYTHING RESEMBLING A REAL MANDATE DURING NEXT YEAR'S FISCAL CRISIS AS THE OVERWHELMINGLY DEMOCRATIC CITY COUNCIL THWARTS HIS MOVES AND THE MUNICIPAL UNIONS THREATEN A STRIKE A MAYOR GIULIANI MAY WISH THAT HE HAD WON MORE IN THE ELECTION THAN JUST HIS OFFICE BUT HE HAS CAST HIS LOT WITH WHAT BILL STERN MARIO CUOMO'S FORMER FINANCE CHAIRMAN CALLS THE CITY'S INSIDER COMMERCIAL PARTY THIS GROUP OF POWER BROKERS EXEMPLIFIED BY SUPERLOBBYIST SID DAVIDOFF ALWAYS SEEMS TO PROFIT FROM WHATEVER BUSINESS THE CITY DOES NEW YORK'S ACCELERATING DECLINE HAS FRIGHTENED MOST OF THE INSIDERS INTO THE GIULIANI CAMP THE WORD'S GONE OUT DINKINS IS BAD FOR BUSINESS SAYS NEWSDAY COLUMNIST RICHARD VIGILANTE BUT THE INSIDERS WILL REMAIN AN ENORMOUS IMPEDIMENT TO REAL REFORM AND ANY FAUSTIAN BARGAIN MR GIULIANI HAS STRUCK WITH THEM WILL CONSTRAIN HIS ACTIONS AS MAYOR HIS PANDERING HAS FEW LIMITS HE OPPOSES NAFTA THOUGH IT'S CLEARLY NOT A CITY ISSUE A TRUE REFORMER WOULD HAVE ENTHUSIASTICALLY ENDORSED TERM LIMITS MR GIULIANI REFUSED TO SIGN A TERMLIMIT PETITION THIS SUMMER BELATEDLY HE CAME OUT FOR THEM DAYS BEFORE THE ELECTION THE CONSERVATIVES BACKING MR MARLIN HAVE TAKEN HEAT FROM GIULIANI REPUBLICANS WHO SAY HE COULD COST THEM THE ELECTION THEY CLAIM HIS CANDIDACY IS QUIXOTIC ELECTION DAY WILL PROBABLY PROVE THEM WRONG ON THE FIRST POINT AND THE NEXT FEW YEARS MAY MAKE THEM REGRET THEY DIDN'T EMULATE MR MARLIN'S BOLDNESS AND CLARITY MR FUND IS A WRITER ON THE JOURNAL'S EDITORIAL PAGE 9310260099 931026 CORRECTIONS & AMPLIFICATIONS A COMPANY WAS MISIDENTIFIED IN A MARKETPLACE ARTICLE YESTERDAY ABOUT THE PROBLEMS PEOPLE CAN HAVE WITH COMPANY HEALTH PLANS COVERED BY THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OR ERISA UNITED HEALTHCARE INC A BALTIMORE COMPANY WAS THE MANAGEDCARE COMPANY SUED UNSUCCESSFULLY BY FLORENCE CORCORAN THE ARTICLE INCORRECTLY IDENTIFIED THE COMPANY AS UNITED HEALTHCARE CORP A PUBLICLY TRADED MANAGEDCARE COMPANY BASED IN MINNEAPOLIS 9310260097 931026 WHO'S NEWS CPC INTERNATIONAL INC CPC INTERNATIONAL INC ENGLEWOOD CLIFFS NJ LEO I HIGDON JR 47 YEARS OLD WAS ELECTED A DIRECTOR OF THIS FOODPRODUCTS CONCERN INCREASING THE BOARD'S SIZE TO 14 MR HIGDON IS DEAN OF THE COLGATE DARDEN GRADUATE SCHOOL OF BUSINESS ADMINISTRATION AT THE UNIVERSITY OF VIRGINIA 9310260096 931026 CREDIT MARKETS YIELD ON 30YEAR TREASURY BOND CLIMBS TO 6 AS JITTERS ABOUT ECONOMIC DATA HAMMER PRICES BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BOND PRICES DROPPED FOR THE THIRD STRAIGHT TRADING SESSION YESTERDAY AS ANXIETY ABOUT ECONOMIC DATA PERVADED THE MARKET THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 1/4 POINT OR MORE THAN 250 FOR A BOND WITH 1000 FACE VALUE TO 103 12/32 ITS YIELD ROSE TO 6 FROM 597 FRIDAY SINCE OCT 15 THE PRICE OF THE 30YEAR BOND HAS DROPPED ABOUT THREE POINTS OR ABOUT 30 FOR A BOND WITH 1000 FACE VALUE THIS IS BAD NEWS FOR INVESTORS WHO JUMPED INTO THE BOND MARKET ON OCT 15 WHEN THE 30YEAR YIELD HIT 579 AND THE 10YEAR NOTE'S YIELD DROPPED TO 517 THE LOWEST SINCE THE LATE 1960S AT ONE POINT YESTERDAY THE LONG BOND WAS DOWN MORE THAN A POINT BUT IT RECOVERED MUCH OF THOSE LOSSES BY DAY'S END THE MARKET HAD ANOTHER SPIRITED SELLOFF TODAY SAID MEAD BRIGGS MANAGER OF RISK TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES INC YOU HAVE A LOT OF FEAR IN THE MARKET RIGHT NOW WITH YIELDS SO LOW SOME INVESTORS DIDN'T NEED MUCH PROMPTING TO UNLOAD THEIR LONGERTERM HOLDINGS AN ANNOUNCEMENT OF STRONGERTHANEXPECTED MIDOCTOBER AUTO SALES CONTRIBUTED TO THE GLOOM IN THE BOND MARKET TRADERS ALSO CITED A REMARK FROM LABOR SECRETARY ROBERT REICH EXPRESSING CONFIDENCE THAT THE ECONOMY HAS PICKED UP STEAM THE TWO EVENTS AROUSED CONCERN ABOUT INFLATION WHICH BONDHOLDERS FEAR BECAUSE IT ERODES THE VALUE OF FIXEDINCOME INVESTMENTS OTHER INVESTORS ARE WORRIED ABOUT A FULL SLATE OF REPORTS TO BE RELEASED THIS WEEK AFTER THE MARKET SOLD OFF FRIDAY IN REACTION TO FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN'S POSITIVE COMMENTS ON THE ECONOMY BOND INVESTORS ARE PARTICULARLY SENSITIVE TO ANY HINT THAT THE ECONOMY IS GAINING STRENGTH REPORTS ON RETAIL SALES AND CONSUMER CONFIDENCE ARE SCHEDULED TO BE RELEASED TODAY TOMORROW THE GOVERNMENT IS TO RELEASE DURABLEGOODS DATA AND ON THURSDAY IT REPORTS ON THE GROSS DOMESTIC PRODUCT THERE'S A GROWING CONSENSUS THAT THE FOURTHQUARTER DATA LIKE LAST YEAR WILL SHOW SOME SIGNIFICANT ACCELERATION OF ECONOMIC GROWTH SAID JOHN LIPSKY CHIEF ECONOMIST AT SALOMON BROTHERS INC ALSO MAKING THE MARKET JITTERY IS A FLOOD OF NEW SUPPLY SCHEDULED TO HIT THE TREASURY MARKET BEGINNING TODAY THE TREASURY WILL AUCTION 165 BILLION OF TWOYEAR NOTES TODAY AND SELL 11 BILLION OF FIVEYEAR NOTES TOMORROW AFTER SUCH A SHARP FALL IN BOND PRICES OVER THE PAST WEEK DESPITE THE LACK OF DATA SHOWING STRONG ECONOMIC GROWTH MANY INVESTORS ARE BEGINNING TO WONDER WHETHER THE BONDMARKET RALLY IS OVER WHILE SOME ECONOMISTS CONTINUE TO PREDICT THAT THE 30YEAR TREASURY YIELD WILL FALL AS LOW AS 55 OVER THE NEXT YEAR TRADERS SAY MANY MONEY MANAGERS HAVE ALREADY BEGUN TO PROTECT THEMSELVES AGAINST HIGHER YIELDS IN FACT MANY MONEY MANAGERS HAVE BEEN DUMPING 10YEAR TREASURY NOTES RECENTLY IN FAVOR OF HIGHERYIELDING MORTGAGEBACKED SECURITIES SAID MR BRIGGS OF DEUTSCHE BANK MONEY MANAGERS STAY AWAY FROM MORTAGEBACKED SECURITIES IF THERE'S EVEN A WHIFF OF SHARPLY FALLING RATES WHEN RATES FALL HOMEOWNERS TEND TO REFINANCE MORE QUICKLY AND SUCH PREPAYMENTS REDUCE THE VALUE OF MORTGAGEBACKED SECURITIES AS RATES PLUMMETED OVER THE PAST YEAR TYPICAL MORTGAGEBACKED SECURITIES FELL OUT OF FAVOR WITH MANY MONEY MANAGERS AND THE SECURITIES' YIELD SPREAD RELATIVE TO 10YEAR TREASURYS WIDENED TO 110 PERCENTAGE POINTS TO REFLECT THE REDUCED DEMAND THROUGH THE END OF THE THIRD QUARTER FUNDS INVESTING IN MORTAGEBACKED SECURITIES WERE PUMMELED BY PLUNGING INTEREST RATES NOW THAT THE MARKET SEEMS TO HAVE TOUCHED BOTTOM MANY MONEY MANAGERS ARE SAYING THAT IT'S TIME TO HOP BACK IN AGAIN A YEAR AGO WHEN THE 30YEAR TREASURY BOND WAS YIELDING 767 MANY MANAGERS WERE SAYING THE SAME THING THE YIELD HAS DROPPED MORE THAN 1 1/2 POINTS SINCE THEN THE RENEWED INTEREST IN MORTGAGE SECURITIES DOESN'T NECESSARILY MEAN INVESTORS ARE BETTING ON RISING RATES THAT'S BECAUSE SHARPLY RISING RATES COULD ALSO BE BAD NEWS FOR INVESTORS IN MORTGAGE SECURITIES IF RATES RISE SHARPLY HOMEOWNERS WOULD PAY OFF THE MORTGAGES MORE SLOWLY AND LEAVE INVESTORS HOLDING THE SECURITIES BACKED BY THEIR LOANS FOR A LONGER PERIOD OF TIME WHILE PREVAILING RATES RISE INSTEAD THE MOVE TO MORTGAGE SECURITIES COULD BE A BET THAT INTEREST RATES WILL FLUCTUATE WITHIN A NARROW BAND IN RECENT DAYS THAT YIELD SPREAD OF TYPICAL MORTGAGEBACKED SECURITIES HAS TIGHTENED TO ABOUT ONE PERCENTAGE POINT OVER COMPARABLE TREASURYS TRADERS SAID AS DEMAND HAS PICKED UP BUT THE YIELD SPREAD STILL IS GENEROUS ACCORDING TO ROBERT ANDRES HEAD OF FIXEDINCOME INVESTMENTS AT MARTINDALE ANDRES & CO OF WEST CONSHOHOCKEN PA WHICH HAS ABOUT 175 MILLION UNDER MANAGEMENT THE MARKET IS OVERCOMPENSATING FOR PREPAYMENT RISK MR ANDRES SAID WE'RE GETTING A DEGREE OF STABILITY IN INTEREST RATES AND WE BELIEVE MORTGAGES WILL OUTPERFORM TREASURYS MR ANDRES SAID THAT HE BEGAN SHIFTING OUT OF LONGERTERM US BONDS A MONTH AGO IN FAVOR OF THREEYEAR TREASURYS BECAUSE HE THINKS THAT LONGTERM RATES WILL GO TO 65 OVER THE NEXT YEAR ROBERT DOW A PARTNER IN CHARGE OF FIXEDINCOME INVESTMENTS FOR LORD ABBETT & CO WHICH MANAGES 17 BILLION IN MUTUAL FUNDS AND PENSION FUNDS ALSO LIKES MORTGAGEBACKED SECURITIES HE BEGAN STOCKING UP ON THEM ABOUT SIX MONTHS AGO WHILE REDUCING EXPOSURE TO LONGERTERM BONDS AT THE SAME TIME HE HAS REDUCED THE AVERAGE LIFE OF HIS BOND HOLDINGS TO ABOUT 475 YEARS FROM 75 YEARS IN APRIL 1992 WHEN THE 30YEAR TREASURY WAS AT 8 HE BELIEVES THE LONGTERM BOND WILL TRADE IN A RANGE FROM 5 5/8 TO 6 1/8 BUT MR LIPSKY THE SALOMON BROTHERS ECONOMIST BELIEVES THE LONGTERM RATE WILL FALL TO 55 OVER THE NEXT YEAR WHILE FOURTHQUARTER DATA MAY SHOW STRONG ECONOMIC PERFORMANCE MR LIPSKY ARGUES THAT THEY WILL BE A BLIP NOT AN INDICATION OF A TREND HE FORECASTS MODERATE GROWTH WITH LITTLE THREAT OF INFLATION IN 1994 LATE YESTERDAY THE TWOYEAR TREASURY NOTE TO BE AUCTIONED TODAY YIELDED 394 IN WHENISSUED TRADING WHILE THE FIVEYEAR NOTE TO BE AUCTIONED TOMORROW YIELDED 480 HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED OCT 28 THE 13WEEK BILLS MATURE JAN 27 1994 AND THE 26WEEK BILLS MATURE APRIL 28 1994 DETROIT HAD TO RAISE THE YIELDS ON ITS 1988 MILLION OFFERING TO ATTRACT BUYERS FOR A BOND ISSUE THAT WAS INSURED AND COMING TO MARKET AT A TIME OF GREAT DEMAND FOR TAXEXEMPT BONDS THIS WAS A TROUBLING DEVELOPMENT YIELDS FOR DETROIT'S SERIES 1993 WATER SUPPLY SYSTEM REVENUE AND REVENUEREFUNDING BONDS MATURING IN 2000 TO 2023 WERE RAISED 0025 TO 005 PERCENTAGE POINT THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP THEY WERE SOLD BY A GROUP OF UNDERWRITERS LED BY GOLDMAN SACHS & CO FOLLOWING THE REPRICING YIELDS RANGED FROM 340 FOR NOTES MATURING IN 1995 TO 543 FOR BONDS MATURING IN 2023 IN THE SECONDARY MARKET THE PRICES OF MANY MUNI BONDS FELL 3/8 POINT TO 3/4 POINT AND MADE THE MARKET VULNERABLE BEFORE THE ANTICIPATED SALE OF MORE THAN 25 BILLION OF TAXEXEMPT DEBT IN THE NEXT FEW DAYS THE VALDEZ ALASKA 550 COUPON MARINETERMINAL REVENUE REFUNDING BONDS MATURING IN 2028 FOR EXAMPLE FINISHED 3/4 POINT LOWER AT 98 3/4 TO YIELD 555 WE HAVE A VERY HEAVY CALENDAR AGAIN AND THERE ARE CONCERNS ABOUT THE RECEPTION FOR THE NEW SUPPLY SAID A NEW YORK TRADER PHILADELPHIA ELECTRIC CO'S 475 MILLION TWOTRANCHE OFFERING ACCOUNTED FOR THE BIGGEST CHUNK OF THE ROUGHLY 1 BILLION OF CORPORATE DEBT ISSUANCE YESTERDAY ACTIVITY WAS LIGHT ACROSS THE CORPORATEDEBT MARKETS INVESTMENTGRADE BOND PRICES FELL FOR THE THIRD STRAIGHT DAY AND YIELD SPREADS NARROWED BY ABOUT 001 TO 002 POINT BONDS FROM GENERAL MOTORS TRADED DOWN BY ABOUT 1/2 POINT PARTLY BECAUSE OF CONCERN THAT THE COMPANY WON'T REDUCE LABOR COSTS BY AS MUCH AS HOPED UNDER ITS RECENTLY NEGOTIATED LABOR CONTRACT PHILADELPHIA ELECTRIC'S 250 MILLION OF EIGHTYEAR FIRST AND REFUNDINGMORTGAGE BONDS WERE PRICED AT 98391 TO YIELD 588 THE ISSUE WAS DONE THROUGH A COMPETITIVE BID WON BY CITICORP SECURITIES MARKETS INC THE NONCALLABLE ISSUE WAS PRICED 057 PERCENTAGE POINT ABOVE TREASURYS AND TRADED IN THE MARKET ABOUT 063 PERCENTAGE POINT ABOVE TREASURYS LEHMAN BROTHERS WON A COMPETITIVE BID FOR THE UTILITY'S 225 MILLION OF 31YEAR FIRSTMORTGAGE AND REFUNDINGMORTGAGE BONDS THE BONDS WERE PRICED AT 99025 TO YIELD 733 114 PERCENTAGE POINTS ABOVE TREASURYS THE ISSUE NONCALLABLE FOR FIVE YEARS HASN'T BEEN FREED TO TRADE IN THE JUNKBOND MARKET RYKOFFSEXTON ISSUED 130 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES PRICED AT 99187 TO YIELD 9 THE NOTES WHICH ARE NONCALLABLE FOR FIVE YEARS ARE RATED BA2 BY MOODY'S AND DOUBLEBMINUS BY S&P LOSSES IN US TREASURYS ALLOWED SOME MORTGAGE SECURITIES TO OUTPERFORM THEIR GOVERNMENT COUNTERPARTS WHILE PRICES OF ALL CURRENT COUPONS THOSE MORTGAGE SECURITIES TIED TO CURRENT HOME LOANS FINISHED LOWER PRICES OF SOME HIGHERCOUPON ISSUES FIRMED SLIGHTLY NEAR THE CLOSE OF TRADING CURRENTCOUPON GINNIE MAE 6 SECURITIES WERE DOWN 1/4 POINT AT 98 21/32 FREDDIE MAC GOLD 6 AND FANNIE MAE 6 SECURITIES WERE OFF 10/32 AT 98 13/32 AND 98 5/32 RESPECTIVELY ALL THOSE ISSUES ARE SCHEDULED FOR NOVEMBER DELIVERY GINNIE MAE 9 ISSUES ON THE OTHER HAND WERE UP 3/32 AT 106 17/32 WHILE FREDDIE MAC GOLD 9 AND FANNIE MAE 9 SECURITIES WERE UP 2/32 AT 106 3/32 AND 106 10/32 RESPECTIVELY THE LATER ISSUES ENJOYED INTEREST FROM A VARIETY OF BUYERS TRADERS SAY BUT PERHAPS THE MOST WELCOME BUYERS BACK ON WALL STREET WERE THE MUTUALFUND MANAGERS AND OTHER RETAIL INVESTORS WHO HAD DEEMED MORTGAGES UNACCEPTABLY RISKY IN THE PRIMARY MORTGAGE MARKET FIVE NEW REAL ESTATE INVESTMENT CONDUITS WERE ANNOUNCED AS WELL AS AN INCREASE TO A DEAL ALREADY ISSUED FOR A TOTAL OF 26 BILLION IN NEW PAPER COLLATERAL FOR THE NEW REMICS INCLUDED 6 AND 6 1/2 COUPONS WITH BOTH 30YEAR AND 15YEAR MATURITIES 9310260095 931026 INTERNATIONAL NETHERLANDS' CONSUMER OUTLOOK AMSTERDAM CONSUMER CONFIDENCE IN THE NETHERLANDS PLUNGED IN OCTOBER REVERSING WHAT HAD BEEN A RISING TREND SINCE APRIL THE GOVERNMENT SAID THE CENTRAL BUREAU FOR STATISTICS SAID THE IMPROVING SENTIMENT THROUGH SEPTEMBER WAS UNSUSTAINABLE IN LARGE PART BECAUSE OF WORRIES ABOUT SURGING UNEMPLOYMENT THE OCTOBER CONSUMER PESSIMISM WAS THE WORST SINCE MARCH THE GOVERNMENT'S CURRENT ECONOMIC OUTLOOK SEES ZERO GROWTH IN 1993 GROSS DOMESTIC PRODUCT AND ONLY A MODEST EXPANSION OF A REAL 1 FOR 1994 GDP GREW 14 LAST YEAR AND UNEMPLOYMENT IS EXPECTED TO RISE BROADLY DESPITE THE MODEST IMPROVEMENT IN GDP NEXT YEAR 9310260094 931026 BRIDGESTONE SLATES EXPANSION TOKYO BRIDGESTONE CORP A JAPANESE TIRE MAKER WILL EXPAND PRODUCTION IN MEXICO TO MEET GROWING DEMAND AND IN INDONESIA TO TAKE ADVANTAGE OF CHEAPER PRODUCTION COSTS THERE IN LIGHT OF THE YEN'S APPRECIATION AT ITS CUERNAVACA PLANT IN MEXICO MONTHLY PRODUCTION WILL INCREASE 36 TO 6000 TIRES FROM 4400 BEGINNING IN DECEMBER A BRIDGESTONE SPOKESMAN SAID MEANWHILE INDONESIAN OUTPUT WILL EXPAND 36 IN PART TO SUBSTITUTE FOR JAPANESE PRODUCTION WHICH HAS GOTTEN MORE EXPENSIVE COMPARED WITH OVERSEAS LOCATIONS BECAUSE OF THE YEN'S APPRECIATION PRODUCTION COSTS IN INDONESIA ARE 30 LOWER THAN IN JAPAN HE SAID 9310260093 931026 CYANAMID DRUG GETS CLEARANCE WAYNE NJ A UNIT OF AMERICAN CYANAMID CO SAID IT GAINED FEDERAL APPROVAL TO MARKET A NEW INTRAVENOUS ANTIBIOTIC THAT IT SAYS IS SIMPLER CHEAPER AND MORE EFFECTIVE THAN THOSE CURRENTLY USED LEDERLE LABORATORIES THE RESEARCH DIVISION OF AMERICAN CYANAMID SAID ITS ZOSYN OR PIPERACILLIN SODIUMTAZOBACTAM SODIUM WAS APPROVED BY THE FOOD AND DRUG ADMINISTRATION AND WILL PROBABLY BE MARKETED IN THE US BY EARLY NOVEMBER THE ANTIBIOTIC LAUNCHED IN EUROPE THIS YEAR IS INTENDED TO FIGHT INFECTIONS CAUSED BY DRUGRESISTANT BACTERIA THE MARKET FOR ZOSYN IS ESTIMATED AT ABOUT 2 BILLION A LEDERLE SPOKESWOMAN SAID 9310260092 931026 HEARD ON THE STREET IT'S BARGAINHUNTING SEASON BUT BEWARE OF QUICKSAND WHILE TRACKING THE LOSERS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THIS IS THE TIME OF YEAR WHEN RESPECTABLE BARGAIN HUNTERS GO RUMMAGING THROUGH OTHER INVESTORS' GARBAGE MANY INVESTORS SELL LOSING STOCKS IN THE FALL FOR TAX REASONS TO OFFSET GAINS ON WINNERS THIS TAXMOTIVATED SELLING DRIVES DOWN THE PRICE OF ALREADYDEPRESSED STOCKS AND CAN CREATE SOME BARGAINS TAX SELLING USED TO OCCUR IN NOVEMBER AND DECEMBER BUT MONEY MANAGERS SAY THE PROCESS HAPPENS EARLIER THESE DAYS ONE REASON IS THAT TAX RULES FOR MUTUAL FUNDS HAVE CHANGED SPURRING THE FUNDS WHICH ARE A MAJOR POWER IN THE STOCK MARKET TO DUMP THEIR LOSERS BY THE END OF OCTOBER SO THE BARGAINHUNTING GAME IS ALREADY AFOOT THE ACCOMPANYING CHART SHOWS A LIST OF THE 25 BIGGEST LOSERS THIS YEAR ON THE NEW YORK STOCK EXCHANGE YOU CAN CHERRYPICK THROUGH A LIST LIKE THIS AND FIND SOME PRETTY GOOD COMPANIES SAYS DAVID A KATZ CHIEF INVESTMENT OFFICER OF MATRIX ASSET ADVISORS IN NEW YORK BUT BE SELECTIVE WARN MONEY MANAGERS THE MARKET HAS IT RIGHT ABOUT NINE OUT OF 10 TIMES SAYS KENT SIMONS COMANAGER OF THE NEUBERGER & BERMAN GUARDIAN FUND FOR THE MOST PART THESE STOCKS ARE DOWN AND THEY SHOULD BE DOWN WE'RE LOOKING FOR THE ONE IN 10 HE THINKS HE HAS FOUND ONE IN NIKE WHEN THE ATHLETICSHOE MAKER'S STOCK WAS RIDING ABOVE 80 THE GUARDIAN FUND TRIMMED ITS POSITION BUT NOW THAT IT'S AROUND 46 MR SIMONS IS A BUYER AGAIN NIKE RECENTLY SAID ITS EARNINGS FOR THE FISCAL YEAR ENDING MAY 1994 MAY BE DOWN 5 TO 10 FROM THE YEAR BEFORE THE SLOWDOWN IS A REFLECTION THAT IT'S A VERY BIG COMPANY AND IT'S NO LONGER IMMUNE TO THE OVERALL ECONOMY NOT ONLY HERE BUT IN EUROPE SAYS MR SIMONS BUT HE STILL SEES A NUMBER OF REASONS TO LIKE NIKE THE STOCK'S NOW UNDER 10 TIMES EARNINGS THEY STILL HAVE DOMINANT FRANCHISES THEY STILL HAVE A GREAT BALANCE SHEET THEY STILL HAVE OUTSTANDING MANAGEMENT AND THE OTHER THING THEY'RE DOING WHICH THEY'VE NEVER DONE IS BUYING BACK STOCK A FALLEN ANGEL THAT INTRIGUES MATRIX'S MR KATZ IS US SURGICAL DOWN MORE THAN 60 YEARTODATE THE STOCK PEAKED AT 134 1/2 IN 1992 YESTERDAY IT CLOSED AT 25 3/8 US SURGICAL'S BASIC BUSINESS MAKING LAPAROSCOPIC INSTRUMENTS FOR NONINVASIVE SURGERY STILL HAS GROWTH POTENTIAL SAYS MR KATZ PATIENTS HAVING THEIR GALL BLADDERS REMOVED WITH SUCH INSTRUMENTS ARE OUT OF THE HOSPITAL IN A DAY OR SO COMPARED WITH FIVE TO EIGHT DAYS FOR TRADITIONAL GALLBLADDER SURGERY US SURGICAL'S PROFITS HAVE FALLEN TO BARELY ABOVE THE BREAKEVEN POINT THIS YEAR MR KATZ CONCEDES BUT HE THINKS THE PROBLEMS A PRICE WAR IN SURGICAL INSTRUMENTS WITH JOHNSON & JOHNSON AND HOSPITALS' ATTEMPTS TO KEEP A TIGHT REIN ON INVENTORIES WILL BEGIN TO EASE WITHIN A YEAR IF YOU TAKE A LONGERTERM VIEW 18 TO 24 MONTHS WE'RE PRETTY CONFIDENT THAT THE STOCK IS WORTH 32 TO 40 MR KATZ SAYS THAT'S ABOUT 16 TIMES THE COMPANY'S 1992 PERSHARE EARNINGS WHEN US SURGICAL WAS AN INVESTORS' DARLING IT FETCHED 58 TIMES EARNINGS MR KATZ SAYS HE WILL PROBABLY PULL THE TRIGGER AND BUY THE BELEAGUERED STOCK IF IT DIPS BELOW 21 HE IS EVEN CLOSER TO BUYING LIZ CLAIBORNE A MAKER OF MIDPRICED TO UPPEREND CLOTHING FOR WORKING WOMEN THEY SEEM NOT TO HAVE HIT THE FASHION RIGHT THIS YEAR HE SAYS WHEN THEY DO WELL EVERYBODY CALLS THEM GENIUSES WHEN THEY MISS ONE SEASON OR ONE YEAR EVERYBODY SAYS THEY'VE LOST THEIR MAGIC THEY HAVE A ROCKSOLID BALANCE SHEET ABOUT 375 A SHARE IN CASH AND A VERY STRONG BRAND NAME LIZ CLAIBORNE STOCK WAS AT 41 5/8 WHEN THE YEAR BEGAN BUT SOLD YESTERDAY FOR 19 MR KATZ THINKS A FAIR VALUE FOR THE STOCK IS 30 TO 35 WHICH HE SAYS IS 12 TO 14 TIMES NORMALIZED EARNINGS OF 250 A SHARE BRETT BRUBAKER PRESIDENT OF ABRAHAM & SONS IN CHICAGO SAYS HE WON'T BUY LIZ CLAIBORNE UNLESS IT FALLS BELOW 15 LIZ CLAIBORNE WAS A STOCK FOR THE '80S WHEN DALLAS' WAS THE NO 1 TV SHOW HE DECLARES NOW THAT IT'S THE SIMPSONS' AND BEAVIS AND BUTTHEAD' LIZ IS KIND OF IN THE WRONG SECTOR SCOTT BLACK PRESIDENT OF DELPHI MANAGEMENT IN BOSTON SINGLES OUT ONE STOCK FROM THE LOSERS' LIST HOOK SUPERX AN INDIANAPOLIS CHAIN THAT RUNS SOME 1500 RETAIL PHARMACIES HOOK'S STOCK PRICE HAS FALLEN TO 6 1/8 FROM 12 3/4 THIS YEAR A LOT OF EXOGENOUS VARIABLES ARE HURTING THE COMPANY SHORTTERM SAYS MR BLACK THE BIGGEST ONE'S SITTING IN THE WHITE HOUSE WITH HIS WIFE RESTRAINING DRUG COSTS PUTS A CRIMP IN DRUGSTORE PROFIT MARGINS MR BLACK EXPLAINS AND REQUIRING ALL EMPLOYERS TO OFFER HEALTH INSURANCE AS PRESIDENT CLINTON PROPOSES WOULD BE COSTLY TO DRUGSTORE CHAINS HOOK IS ALSO HURTING BECAUSE OF PRICE WARS AGAINST SUCH COMPETITORS AS WALGREEN AND PHARMOR MR BLACK DOESN'T EXPECT THESE PROBLEMS TO CLEAR UP SOON BUT THE STOCK IS SO CHEAP THAT HE SEES INVESTMENT MERIT IN IT I THINK IT'S WORTH HOLDING ON TO HE SAYS BUT IT'S FOR THE PATIENT TYPE OF COURSE SOME MONEY MANAGERS DON'T CARE FOR ANY OF THE STOCKS ON THE WORSTLOSERS LIST MOST OF THOSE COMPANIES NEED TO SPEND A LITTLE BIT MORE TIME IN THE PENALTY BOX BEFORE THEY BECOME ATTRACTIVE SAYS CHRIS BERTELSEN OF EAGLE ASSET MANAGEMENT IN ST PETERSBURG FLA YOU'LL HAVE TIME TO BUY THESE COMPANIES WHEN THERE'S NO NEWS ON THEM AS OPPOSED TO THE BAD NEWS WE SEE NOW YOU DON'T HAVE TO BUY THE YEAR'S MOST BATTERED STOCKS TO BARGAINHUNT AMONG STOCKS THAT ARE JETTISONED IN THE YEAREND TAXSELLING BAZAAR MOREMODERATE LOSERS CAN ALSO BE ATTRACTIVE JAMES STACK EDITOR OF THE INVESTECH MARKET LETTER IN WHITEFISH MONT SEES BARGAINS IN THE PHARMACEUTICAL SECTOR PARTICULARLY BRISTOLMYERS SQUIBB AND GLAXO HE ALSO LIKES MEDICINE SHOPPE INTERNATIONAL A FRANCHISER OF PHARMACIES EVERYONE IS AFRAID TO GO NEAR THE HEALTHCARE STOCKS BECAUSE OF THE CLINTON ADMINISTRATION'S HEALTHCARE PACKAGE SAYS MR STACK BUT HE SAYS THE PACKAGE THAT WILL EVENTUALLY BE PASSED BY CONGRESS HAS VERY LITTLE CHANCE OF CLOSELY RESEMBLING THE PROPOSED PACKAGE MR BRUBAKER OF ABRAHAM & SONS FAVORS US SHOE YESTERDAY ITS SHARES WERE TRADING FOR 11 THAT'S ONLY ABOUT FIVE TIMES THE EARNINGS THE COMPANY POSTED IN MOST RECENT YEARS DURING THE PAST FOUR QUARTERS HOWEVER THE COMPANY HAS BEEN UNPROFITABLE MR BRUBAKER ARGUES THAT US SHOE'S LENSCRAFTER UNIT WHICH MAKES GLASSES IS WORTH 10 ALL BY ITSELF I GET EVERYTHING ELSE FOR FREE HE SAYS MONEY MANAGERS STRESS THAT NO INVESTOR SHOULD EVER BUY A STOCK JUST BECAUSE IT HAS FALLEN A LOT MR KATZ OF MATRIX SAYS IT'S ESSENTIAL TO CHECK A FALLEN STOCK'S BALANCE SHEET EARNINGS PROSPECTS AND RECENT TRADES BY INSIDERS DELPHI'S MR BLACK PUTS IT EVEN MORE BLUNTLY A LOT OF THEM I WOULDN'T TOUCH HE SAYS A LOT OF THEM HAVE TERMINAL CANCER LET'S FACE IT AMONG NEW YORK STOCK EXCHANGE STOCKS WITH A MARKET VALUE OF 100 MILLION OR MORE HERE ARE THIS YEAR'S BIGGEST LOSERS THROUGH FRIDAY PRICES AND PERCENTAGE CHANGES AS OF MONDAY READ AND REAP IN RIO BARING SECURITIES INC YESTERDAY ADVISED CLIENTS TO TAKE PROFITS IN BRAZIL ONE OF THE YEAR'S HOTTEST EMERGING MARKETS THE BRAZILIAN BOVESPA STOCK INDEX IS UP 74 THIS YEAR IN DOLLAR TERMS SAYS BARING MAKING IT ONE OF THE TOPPERFORMING EMERGING MARKETS YESTERDAY BRAZILIAN SHARES FELL 8 ROBERT BARCLAY BARING'S COUNTRY MANAGER IN SAO PAULO FORECASTS ADDITIONAL DECLINES BECAUSE OF SLOWING ECONOMIC CONDITIONS HE ALSO LOOKS FOR WEAKER EARNINGS GAINS RISING INFLATION AND A NEW WAVE OF POLITICAL TURMOIL EVEN SO BARING'S LATIN AMERICAN PORTFOLIO STRATEGY CALLS FOR A 14 ALLOCATION TO BRAZILIAN STOCKS THAT WEIGHTING HOWEVER IS FAR BELOW THE RECOMMENDATION OF MOST INTERNATIONAL STOCK STRATEGISTS 9310260091 931026 LETTERS TO THE EDITOR CLINTON PLAN THREATENS SOME LOSS OF FREEDOM YOUR SEPT 23 ARTICLE ON HEALTH CARE REFORM FOR FAMILIES IMPACT VARIES WITH DIVERSE SITUATIONS ATTEMPTS TO DEPICT THE PROBABLE ECONOMIC IMPACT OF REFORM ON SPECIFIC FAMILIES YOU EXPECT READERS WILL BE EAGER TO SEE IF THEY WILL BE WINNERS OR LOSERS WHEN THE REFORMS TAKE EFFECT WHILE SUCH AN ARTICLE IS USEFUL IT IS ALSO MISLEADING AND DIVISIVE IT IGNORES THE MORE BASIC EFFECT THAT IS COMMON TO ALL FAMILIES A LOSS OF FREEDOM AND AS ANY PROPONENT OF THE FREE MARKET KNOWS WE ARE ALL ECONOMIC LOSERS WHEN OUR FREEDOM IS RESTRICTED AND ECONOMIC WINNERS WHEN OUR FREEDOM IS EXPANDED HOW CAN THE HEALTH CARE SYSTEM BE IMPROVED WITHOUT LIMITING INDIVIDUAL FREEDOM ALL OF MR AND MRS CLINTON'S GOALS WITH THE EXCEPTION OF THE EXPANSION OF FEDERAL POWER COULD BE ACCOMPLISHED IF THE GOVERNMENT ENCOURAGED THE DVELOPMENT OF MEDICAL SAVINGS ACCOUNTS PORTABILITY IMPROVED ACCESS DECREASED COST AND PATIENT CHOICE OF DOCTORS AND HOSPITALS WOULD RESULT WITHOUT THE NEED FOR THE GOVERNMENT TO BEHAVE AS A BUREAUCRATIC BULLY THE GOVERNMENT PRESENCE IN MEDICINE COULD ACTUALLY BE LESSENED 9310260090 931026 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY OCTOBER 13 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9310260089 931026 LETTERS TO THE EDITOR WHY SECTARIAN' IS AN INSULT DANIEL MCGROARTY'S EXCELLENT OCT 1 EDITORIAL PAGE PIECE A PRAYER FOR A BETTER EDUCATION ON PARENTS SUING THE CITY OF MILWAUKEE OVER SCHOOL CHOICE WOULD HAVE BEEN EVEN MORE PERSUASIVE HAD HE NOT USED THE TERM SECTARIAN TO DESCRIBE RELIGIOUS SCHOOLS IN A SPRING 1990 ARTICLE IN THE JOURNAL OF LAW AND POLITICS CORNELL PROF RICHARD BAER DETAILS WHAT A NASTY TERM SECTARIAN IS HE CONVINCINGLY DEMONSTRATES THAT THE SUPREME COURT'S USE OF THE FORMULA RELIGIOUSSECTARIAN PREJUDICES ITS THINKING ABOUT RELIGION IN RELATION TO EDUCATION JUST AS ITS USE OF THE EQUATION SECULARNONSECTARIAN GIVES AN UNFAIR ADVANTAGE TO NONRELIGIOUS SCHOOLS PROF BAER SHOWS THAT THE TERM SECTARIAN HAS BEEN USED THROUGHOUT AMERICAN HISTORY TO MARGINALIZE AND DISENFRANCHISE PEOPLE WHO HELD WRONG BELIEFS ORIGINALLY THOSE WITH WRONG RELIGIOUS BELIEFS AND LATER THOSE WITH RELIGIOUS RATHER THAN SECULAR BELIEFS WITH MEANINGS LIKE PAROCHIAL BIGOTED SCHISMATIC ONESIDED AND NARROWMINDED THE TERM SECTARIAN IS ANYTHING BUT FLATTERING THE TRUTH IS THAT RELIGIOUS SCHOOLS AS A TOTAL SET ARE NO MORE NARROWMINDED OR ONESIDED THAN ARE SECULAR SCHOOLS THEY HAVE NO MONOPOLY ON BIGOTRY AND INTOLERANCE BY ACQUIESCING IN THE EQUATION RELIGIOUSSECTARIAN WE MAKE IT ALL THAT MUCH HARDER FOR CHOICE INITIATIVES THAT INCLUDE THE OPTION OF RELIGIOUS SCHOOLS TO SUCCEED 9310260088 931026 LEISURE & ARTS THE GALLERY MASTER AND STUDENT DRAWINGS BY ROGER KIMBALL NEW YORK TWO EXHIBITIONS HERE THIS FALL BRING US BACK TO THAT ULTIMATE CRUCIBLE OF SERIOUS ARTISTIC ENDEAVOR DRAWING AT THE FRICK COLLECTION THROUGH NOV 7 THERE IS DUTCH EIGHTEENTHCENTURY WATERCOLORS FROM THE RIJKSMUSEUM PRINTROOM AMSTERDAM A SAMPLING OF 70 VIRTUOSO SHEETS FROM THE SOCALLED SILVER AGE OF DUTCH ART 17001800 AND DOWNTOWN AT THE MORGAN LIBRARY THROUGH JAN 2 IS FRENCH MASTER DRAWINGS FROM THE PIERPONT MORGAN LIBRARY A SUMPTUOUS OVERVIEW OF 125 WORKS IN SEVERAL MEDIA FROM 1400 THROUGH THE 19TH CENTURY BOTH EXHIBITIONS CONTAIN WORKS OF GREAT AESTHETIC ACCOMPLISHMENT AND BEAUTY AND BOTH ARE PRODIGIOUS DEMONSTRATIONS OF TECHNICAL FACILITY AMONG THE 39 ARTISTS INCLUDED IN THE EXHIBITION AT THE FRICK WHICH TRAVELS TO THE CENTER FOR THE FINE ARTS IN MIAMI FLA AND THE FLINT INSTITUTE OF ARTS FLINT MI AFTER CLOSING HERE ARE SUCH IMPORTANT 18THCENTURY DUTCH MASTERS AS CORNELIS TROOST JACOB CATS JACOB DE WIT AND AART SCHOUMAN THIS IS A SELFCONSCIOUSLY SECULAR ART DETERMINEDLY AT HOME IN THE WORLD THERE ARE A FEW OLDFASHIONED ARCADIAN EVOCATIONS REPLETE WITH THE NECESSARY QUOTA OF NYMPHS AND SATYRS BUT MOST OF THE WORKS ARE LOVING INVENTORIES OF NATURAL PHENOMENA METICULOUSLY OBSERVED LANDSCAPES AND DRAWINGS OF ANIMALS LUSCIOUS STILL LIFES NUTS AND BLOSSOMS VINE LEAVES AND SUCCULENT RIPE MELONS EXACTINGLY RENDERED GENRE SCENES ARCHITECTURAL DETAILS AND ACADEMIC FIGURE STUDIES THERE IS AN EXTRAORDINARY REDBILLED TOUCAN BY SCHOUMAN MORE AGLOW WITH LIFE ON PAPER THAN IT COULD HAVE BEEN IN THE ARTIST'S STUDIO SINCE IT WAS DRAWN FROM A STUFFED SPECIMEN THERE ARE LIVELY DOMESTIC SCENES BY TROOST ONE OF THE MOST ACCOMPLISHED DUTCH PAINTERS OF HIS DAY AND THERE ARE SEVERAL PAINSTAKING EFFORTS TO REPRODUCE NATURE'S FECUNDITY LANDSCAPES BEDECKED WITH MAGNIFICENT TREES EVERY LEAF OF WHICH SEEMS TOTTED UP AND ACCOUNTED FOR STREET SCENESSUCH AS CATS'S LOVELY DEPICTION OF A STREET IN BEVERWIJKIN WHICH THE ARTIST SEEMS TO HAVE INTERVIEWED EVERY BRICK AND COBBLESTONE THE DRAWINGS AT THE MORGAN LIBRARY PRESENT A MUCH BROADER RANGE THE EXHIBITION WHICH WAS ON VIEW AT THE LOUVRE THIS SUMMER CARRIES US QUIETLY THROUGH REVOLUTIONS OF TASTE AND SPIRITUAL ASPIRATION BEGINNING WITH WORKS FROM THE TWILIGHT OF MEDIEVALISM AND CONCLUDING WITH SOME LATE19THCENTURY DRAWINGS BY CEZANNE DEGAS REDON AND DELACROIX IT TAKES US FROM A CULTURAL SITUATION IN WHICH THE ARTIST STROVE TO PAY HOMAGE TO GOD TO ONE IN WHICH HE PAID HOMAGE TO ART AT THE CENTER ARE SOME 70 DRAWINGS FROM GREAT 18THCENTURY FRENCH MASTERS SUCH AS WATTEAU GREUZE FRAGONARD AND BOUCHER DATING FROM THE EARLY 1900S THE MORGAN'S COLLECTION OF OLDMASTER DRAWINGS IS ONE OF THE OLDEST IN THE US IT IS STILL ONE OF THE MOST DISTINGUISHED THERE IS A LITTLE SOMETHING OF EVERYTHING FOR AFFECTIONATE SENSUOUSNESS THERE ARE WATTEAU'S SEATED YOUNG WOMAN AND TWO STUDIES OF THE HEAD AND SHOULDERS OF A LITTLE GIRL IN THESE DEFT WARMHEARTED EFFORTS WATTEAU DISPLAYS SURE MASTERY OF THE FLEMISH TROIS CRAYONS TECHNIQUE EMPLOYING BLACK RED AND WHITE CHALK TO CREATE SNAPSHOTS OF GREAT CHARM AND VIVACITY THEN THERE ARE SOME REMARKABLE PORTRAITS INCLUDING GREUZE'S HIGHLY FINISHED NEARLY LIFESIZE BUST OF DIDEROT DONE IN WHITE AND BLACK CHALK ON RICH BROWN PAPER THE DRAWING SHOWS THIS PREEMINENT ENLIGHTENMENT INTELLECTUALACTIVIST IN FULL PROFILE LOOKING AS HE PUT IT IN A FAMOUS SELFDESCRIPTION LIKE AN ANCIENT ORATOR ALSO ATTRIBUTED TO GREUZE IS AN ARRESTING STUDY IN RED CHALK OF THE HEAD OF A YOUNG MAN ANOTHER VERSION OF WHICH IS IN THE NATIONAL GALLERY IN WASHINGTON WITH FURROWED BROW PARTED LIPS AND STARING EYES THE SUBJECT IS CLEARLY IN THE GRIP OF SOME FURIOUS EMOTION THERE IS ALSO THE INTENSE AND UNUSUAL PORTRAIT OF A MAN BY COROT WHICH SHOWS WHAT THAT GREAT ARTIST COULD DO WHEN HE TURNED HIS ATTENTION AS HE ONLY RARELY DID FROM LANDSCAPE TO PORTRAITURE ANOTHER HIGH POINT IS DEGAS'S LEAN FASTIDIOUS PORTRAIT OF M AND MME PAUL VALPINCON AN HOMAGE BOTH TO HIS NEWLY MARRIED FRIENDS AND TO DEGAS'S OWN MASTER INGRES WHO ONCE ADVISED HIM TO DRAW LINES YOUNG MAN MANY LINES THIS SPLENDID DOUBLE PORTRAIT IN PENCIL DEMONSTRATES HOW EXPERTLY DEGAS WAS ABLE TO FOLLOW THAT ADVICE FRAGONARD BEST KNOWN FOR HIS COY DALLIANCES AND TRYSTS IN POSH GARDENS WAS ALSO AN IMPORTANT PORTRAITIST BUT HIS PORTRAIT OF A NEAPOLITAN GIRL DONE ON HIS SECOND TRIP TO ITALY IS ONE OF THE MOST APPEALING IN THE EXHIBITION AND IT SHOWS THERE WAS MORE IN THIS ARTIST'S MIND AND EYE THAN BLUSHING COQUETTES ON SWINGS VERY DIFFERENT BUT ALSO VERY GREAT IS THE SHIMMERING WATERCOLOR OF TREES THAT CEZANNE DID IN 1900 SIX YEARS BEFORE HIS DEATH IN POINTED CONTRAST TO THE DUTCH WATERCOLORS ON VIEW AT THE FRICK CEZANNE'S ABSTRACT PATCHES OF BLUES AND GREENS AND BROWNS A DAPPLED HARMONY OF FOLIAGE REMINDS US THAT THE GENIUS OF WATERCOLOR DOES NOT DEPEND ON OPTICAL VERISIMILITUDE THERE IS NARY A LEAF DELINEATED IN THIS RAVISHING WORK BUT THE WHOLE TREE NONETHELESS VIBRATES WITH THE REALITY OF LIFE SEEN AND DEEPLY FELT THE SINGLE MOST REMARKABLE OBJECT IN THE MORGAN EXHIBITION IS ALSO THE OLDEST A BOXWOOD SKETCHBOOK FROM AROUND 1400 THAT JP MORGAN ACQUIRED IN 1906 IT IS ASSOCIATED WITH JACQUEMART DE HESDIN ONE OF THE LEADING ILLUMINATORS AT THE COURT OF JEAN DE BERRY HE OF THE FAMOUS BOOK OF HOURS CONSISTING OF SIX EXTRAORDINARILY THIN LEAVES OF BOXWOOD THE TINY 5 1/8INCHBY2 3/4INCH SKETCH BOOK IS OPEN TO A PICTURE OF THE VIRGIN AND CHILD I HAVE NEVER SEEN ANYTHING LIKE IT THE WORK IS EXECUTED IN METALPOINT ON A FADED WHITE GESSO AS THE CRITIC ROGER FRY WHO ADVISED MORGAN ON CERTAIN PURCHASES NOTED THE DRAWING IS CARRIED OUT WITH A MINUTENESS AND PERFECTION WHICH COULD NOT BE SURPASSED IN THE MINIATURES FOR WHICH THEY MIGHT SERVE AS STUDIES IT IS ALMOST AS IF LIGHT ITSELF TURNED ARTIST FOR A MOMENT LEAVING BEHIND THESE HALFDOZEN STARTLING IMPRINTS EVANESCENCES FIXED IN SOME ULTIMATE DELICACY EVEN IF IT WERE THE ONLY THING ON VIEW IT WOULD BE WORTH MAKING A TRIP TO THE MORGAN TO SEE IT LOOKING AROUND THE CONTEMPORARYART WORLD IT SOMETIMES SEEMS THAT THE ART OF DRAWING IS DEAD THE NEW YORK STUDIO SCHOOL IN GREENWICH VILLAGE HAS ONCE AGAIN SHOWN THAT IT IS VERY MUCH ALIVE UP THROUGH NOV 14 IS A TWOPART EXHIBITION CALLED FRENCH IDEALS FRENCH IDYLLS THE FIRST PART OFFERS NEARLY 70 FRENCH DRAWINGS SOME OF THEM FIRSTCLASS FROM A WIDE VARIETY OF PRIVATE COLLECTIONS INCLUDED ARE WORKS BY WATTEAU BOUCHER SEURAT PRUD'HON GERICAULT DEGAS AND MANY OTHERS IT IS THE SECOND PART OF THE EXHIBITION HOWEVER THAT GIVES US HOPE FOR THE FUTURE HERE WE FIND SCORES OF STUDENT WORKS BASED ON VARIOUS FRENCH MASTERPIECES SOME OF THE WORKS ARE BEGINNERS' EFFORTS SOME ARE MUCH MORE LOOK AT THE LARGE DRAWING DONE FROM COURBET'S WOMAN WITH A PARROT FOR EXAMPLE OR THE LARGE OIL BASED ON DELACROIX OR AN AMBITIOUS ANNUNCIATION IN THE BASEMENT GALLERY THESE ARE MORE THAN COPIES THEY ARE ACCOMPLISHED WORKS IN THEIR OWN RIGHT DEMONSTRATING AS A SCHOOL BROCHURE PUTS IT THE CONTINUOUS LINK OF CONTEMPORARY DRAWING PAINTING AND SCULPTURE WITH THE HERITAGE OF GREAT FRENCH ART FROM POUSSIN TO MATISSE GO SEE THEM THE FUTURE OF ART IS ON VIEW NOW AT THE STUDIO SCHOOL 9310260087 931026 LEISURE & ARTS BOOKSHELF MAN AND MUTT ON THE ROAD BY MANUELA HOELTERHOFF ONE THING LED TO ANOTHER UNTIL ONE MORNING LARS EIGHNER FOUND HIMSELF STANDING ON TEXAS HIGHWAY 290 WITH AMONG OTHER THINGS A BACKPACK STUFFED WITH 25 POUNDS OF DOG FOOD A HOSPITAL SCRUB SUIT A WARM CAFTAN MADE BY A FORMER HOUSEMATE AND A BEDROLL IT FAST BECAME CLEAR THAT HE HAD OVERPACKED I COULD ONLY GET THE PACK ON MY BACK BY RECLINING ON IT HOOKING MY ARMS THROUGH THE STRAPS AND THRASHING MY LIMBS LIKE A SUPINE COCKROACH TO RIGHT MYSELF HE RECALLS IN TRAVELS WITH LIZBETH THREE YEARS ON THE ROAD AND ON THE STREETS ST MARTIN'S 271 PAGES 1995 LIZBETH WAS AND IS HIS MUTT A HALFLABRADOR RETRIEVER NOT TOO BRIGHT BUT AWFULLY FRIENDLY MR EIGHNER WAS BUT NO LONGER IS HOMELESS HE NOW LIVES IN A TINY APARTMENT IN AUSTIN IRONICALLY RIGHT BACK WHERE THIS CURIOUS TALE STARTS AFTER MR EIGHNER LOST HIS JOB AT THE STATE LUNATIC ASYLUM AND SLOWLY RAN OUT OF FUNDS AND FRIENDS WHO COULD AS HE WOULD SAY OFFER HIM AND LIZBETH SOME HOSPITALITY AN ELEVATED MANNER OF ADDRESS AND A RICH VOCABULARY AT ODDS WITH HIS IMPOVERISHED STATE AND DEADBEAT FRIENDS MAKE MR EIGHNER A QUIRKY GUIDE INTO THE HOMELESS CONDITION AS HE PLUNGES ON THROUGH MIRACLE MILES DESERT FLEA MARKETS AND DUSTY TRUCK STOPS SURVIVING EN ROUTE THE COMPLEX ARCHITECTURE OF HIGHWAY ACCESS RAMPS SUBZERO TEMPERATURES PSYCHOTIC COMPANIONS AND AN AMAZING ENCOUNTER WITH THE TEXAS WELFARE SYSTEM ONLY PEOPLE WITH KITCHENS HE LEARNS TO HIS BEFUDDLEMENT QUALIFY FOR FOOD STAMPS BUT AS HE STANDS THERE ON HIGHWAY 290 WITH LESS THAN A QUARTER IN HIS POCKET AND THAT MOSTLY IN PENNIES MR EIGHNER IS A HOPEFILLED MAN HEADING TO LOS ANGELES WITH A THREEPRONGED PLAN THEY ARE PROBABLY NOT THE DREAMS OF A DAWN STEEL OR A MIKE OVITZ BUT THEY ARE HIS HE HOPES TO RECEIVE SOME HOSPITALITY FROM HIS FRIEND RUFUS WHO SHOULD BE GETTING OUT OF JAIL FOR GROSS AND PUBLIC LEWDNESS HE HOPES AN ADVERTISED POSITION FOR ASSISTANT EDITOR AT A GAY MEN'S MAGAZINE WILL BE HIS SEVERAL OF HIS STORIES HAVE BEEN PUBLISHED TO MUCH ACCLAIM IF LITTLE MONEY IN THIS SPECIALIZED MARKET NICHE HE HOPES HE MIGHT BE USEFUL WORKING WITH PEOPLE WITH AIDS HIS EMPLOYMENT HISTORY AFTER ALL INCLUDES AN ELEEMOSYNARY CORPORATION WHERE HE HAD SUCCESSFULLY STALKED THE ELUSIVE THIRDPARTY PAYMENT BUT MR EIGHNER WILL TURN FAT FROM JUNK FOOD AND SOON THEREAFTER 40 WEEPING OUTSIDE A DOG POUND WHERE LIZBETH IS IMPRISONED AWAITING DEATH FALSELY ACCUSED BY YES A BLIND PERSON OF ASSAULT THE EDITOR OF THE GRACKLE A TINY MAGAZINE TO WHICH MR EIGHNER HAD SUBMITTED A FEW SMALL THINGS IN LONGHAND DONATES THE 100 HE NEEDS TO SAVE LIZBETH JUST SHORTLY BEFORE THE NEEDLE IS READIED GIVEN THE ASTONISHING PREPONDERANCE OF WORTHLESS PEOPLE IN THE PUBLISHING INDUSTRY IT IS HEARTENING TO NOTE THAT A FEW GOOD SOULS EMERGED FROM THEIR SLUSH PILES TO ASSIST THE AUTHOR IN HIS INTRODUCTION HE THANKS STEVEN SAYLOR AN AGENT WHO CONSERVED SCRIBBLED BITS AND PIECES MR EIGHNER HAD SENT HIM WHILE HE WAS IN NO POSITION TO KEEP THINGS AS FRAGILE AS INK AND PAPER AND WENDY LESSER EDITOR OF THE APPROPRIATELY NAMED THREEPENNY REVIEW THE BEST LITERARY MAGAZINE WEST OF DALLAS IT WAS MS LESSER WHO REALIZED THE INFORMATIVE BEAUTY OF A PIECE CALLED ON DUMPSTER DIVING WHICH NOW SERVES AS THE BOOK'S CENTERPIECE JUST HULKING TRASH CONTAINERS TO MOST OF US DUMPSTERS TURNED INTO MR EIGHNER'S SMORGASBORD AND HOBBY CENTER HOISTING HIMSELF INTO THE MESS HE LEARNED WHICH FOODS TO AVOID AND WHICH TO FINISH WITH ABANDONED HALFEATEN PIZZAS CONTRIBUTING MUCH TO HIS INCREASING STOUTNESS SADNESS TINGES THESE EXCAVATIONS AS HE COMES UPON PETS LYING IN STATE SHREDDED WEDDING BOOKS AND AUSTIN BEING A COLLEGE TOWN MANY SAMPLES OF OUR FAILING EDUCATIONAL SYSTEM I AM HORRIFIED NOTES MR EIGHNER IN HIS ENTERTAINING DEADPAN MANNER TO DISCOVER THE KIND OF PAPER THAT NOW MERITS AN A IN AN UNDERGRADUATE COURSE AN ENTHUSIASTIC NEEDLEWORKER HE PASSES THE TIME WITH EMBROIDERYBYNUMBER KITS ABANDONED HE IMAGINES BY FUMBLEFINGERED SORORITY SISTERS DO NOT THINK I REFRAIN FROM CHUCKLING AS I MAKE GIFTS FROM THESE KITS HE SAYS BUSILY TEARING UP SOME NYMPH'S HIDEOUS STITCHING TO CREATE HIS OWN MORE FLAMBOYANT DESIGN THE BOREDOM WEIGHS HEAVILY NONETHELESS EVERY LIFE HE NOTES HAS TRIVIAL OCCURRENCES POINTLESS EPISODES AND UNRESOLVED MYSTERIES BUT A HOMELESS LIFE HAS THESE AND VIRTUALLY NOTHING ELSE PHLEBITIS BRIEFLY TAKES HIM OFF THE STREETS INTO AN EMERGENCY ROOM WHERE HIS NIXON JOKES ONLY SERVE TO CONVINCE THE STAFF HE IS IN NEED OF PSYCHIATRIC CARE OBVIOUSLY THE MORE HE INSISTS THAT HE ISN'T A DRUNKEN DRUGGY LUNATIC THE MORE THE DOCTORS CHATTER ABOUT DENIAL IN TRUTH MR EIGHNER ISN'T YOUR USUAL SHIFTLESS BUM AND HIS COMPELLING NARRATIVE MAKES CLEAR THAT IF OUR SOCIAL SERVICES WERE NOT PRIMARILY DESIGNED TO SUCCOR BUREAUCRATS MORE DESERVING PEOPLE LIKE HIM COULD BE SAVED FROM THE STREETS GRASPING TOGETHER HIS SHREDS OF DIGNITY HE NEITHER BEGS NOR STEALS THOUGH LIZBETH ADMITTEDLY SHOWS A LESS RESOLUTE CHARACTER NOT LONG INTO THEIR TRAVELS SHE PERFECTS WHAT HER COMPANION CALLS THE DYING DOG ROUTINE A SERIES OF FEEBLE TWITCHES OF THE TAIL AND WAN LOOKS THAT EASILY EXTRACT HANDOUTS FROM THE HOMELESSHARDENED TRAVELS WITH LIZBETH ENDS AS MR EIGHNER FINDS A PERSONAL COMPUTER IN A DUMPSTER AND SETS OUT TO PROVIDE THEM BOTH WITH A STEADY SOURCE OF INCOME BY WRITING THIS BOOK THE FIRST I HOPE OF MANY 9310260086 931026 WHO'S NEWS GENERAL MILLS INC APPOINTS SANGER TO PRESIDENT'S POST BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL MILLS INC NAMED STEPHEN W SANGER PRESIDENT OF THE MINNEAPOLIS PACKAGED FOOD AND RESTAURANT CONCERN FILLING A VACANT OFFICE AND MAKING HIM THE CLEAR FAVORITE TO BECOME ITS NEXT CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT AGE 47 MR SANGER IS THE YOUNGEST OF THREE VICE CHAIRMEN AT GENERAL MILLS THE NATION'S SECONDLARGEST CEREAL MAKER AFTER KELLOGG CO AND THE BIGGEST OPERATOR OF CASUALDINING RESTAURANTS WITH 81 BILLION IN SALES IN FISCAL 1993 ENDED MAY 30 THE OTHER TWO VICE CHAIRMEN MARK H WILLES AND JOE R LEE BOTH 52 NOW WILL REPORT TO MR SANGER WHILE THERE WAS NO INDICATION THAT THE CURRENT CHAIRMAN AND CEO H BREWSTER ATWATER JR 62 INTENDS TO LEAVE OFFICE ANY TIME SOON CORPORATE POLICY DOESN'T MANDATE RETIREMENT UNTIL AGE 65 THE APPOINTMENT ENDS SPECULATION AS TO WHO WAS LIKELY TO SUCCEED HIM THE PREVIOUS PRESIDENT MR WILLES BECAME A VICE CHAIRMAN 18 MONTHS AGO I THINK THE RACE IS OVER SAID NOMI GHEZ FOOD ANALYST AT GOLDMAN SACHS & CO YESTERDAY HE'S A TOP MARKETING GUY AND THAT'S WHAT GENERAL MILLS IS ALL ABOUT SHE SAID OF MR SANGER PRUDENTIAL SECURITIES ANALYST JOHN MCMILLIN SAID THAT OF THE THREE VICE CHAIRMEN NOBODY HAS SPENT MORE TIME WITH THE YELLOW BOX CHEERIOS THAT MAKES THE GREEN AS PRESIDENT MR SANGER WILL HAVE RESPONSIBILITY FOR ALL ASPECTS OF THE COMPANY EXCEPT HUMAN RESOURCES MR WILLES CONTINUES TO OVERSEE FINANCE INTERNATIONAL FOODS RED LOBSTER JAPAN RESTAURANT BUSINESS DEVELOPMENT LAW AND INVESTOR RELATIONS MR LEE IS IN CHARGE OF BETTY CROCKER PRODUCTS GORTON'S FROZEN FISH TECHNOLOGY AND OPERATIONS CORPORATE COMMUNICATIONS AND PUBLIC AFFAIRS AND MARKETING SERVICES A 19YEAR VETERAN WHO CAME TO GENERAL MILLS FROM PROCTER & GAMBLE CO MR SANGER HAS ACCUMULATED BROAD MANAGERIAL AND MARKETING EXPERIENCE AMONG OTHER ASSIGNMENTS AS PRODUCT MANAGER FOR WHEATIES CEREAL PRESIDENT OF YOPLAIT YOGURT HEAD OF ALL BIG G CEREALS AND PRESIDENT OF A NEWVENTURE OPERATION THAT INCLUDED A FAILED FROZEN NOVELTY BUSINESS MORE RECENTLY MR SANGER LED GENERAL MILLS' TEAM THAT PUT TOGETHER A EUROPEAN SNACKS JOINT VENTURE WITH PEPSICO INC HE WAS NAMED A VICE CHAIRMAN AND DIRECTOR JUST A YEAR AGO AROUND THE COMPANY THE NEW PRESIDENT HAS A REPUTATION AS SOMETHING OF A PRANKSTER ONCE JUST BEFORE AN INHOUSE PRESENTATION OF A NEW LARGER MUFFIN MR SANGER SWITCHED THE SIGNS ON THE NEW AND OLD VERSIONS HE ALSO IS A COLLEGE BASKETBALL FAN WHO MANAGES HIS SCHEDULE SO AS NOT TO MISS NCAA FINAL FOUR TOURNAMENTS IN ANOTHER MANAGEMENT CHANGE STEPHEN R DEMERITT 50 WAS NAMED CHIEF EXECUTIVE OFFICER OF CEREAL PARTNERS WORLDWIDE THE CEREAL MANUFACTURING AND DISTRIBUTION JOINT VENTURE BETWEEN GENERAL MILLS AND NESTLE SA MR DEMERITT SUCCEEDS CHARLES GAILLARD 52 EXECUTIVE VICE PRESIDENT WHO RETURNS TO THE US TO ASSUME OVERSIGHT OF THE DOMESTIC BIG G CEREAL BUSINESS AS WELL AS CONSUMER FOOD SALES AND YOPLAIT YOGURT SUCCEEDING MR DEMERITT AS SENIOR VICE PRESIDENT INTERNATIONAL FOODS AND PRESIDENT OF GENERAL MILLS CANADA WILL BE DAVID D MURPHY 41 WHO HAD SERVED MOST RECENTLY AS PRESIDENT OF THE BIG G CEREAL DIVISION 9310260085 931026 BUSINESS WORLD PENSIONS THE SHAPE OF THINGS TO COME BY TIM W FERGUSON SOMEWHERE AROUND THE BEND IN AMERICAN POLITICS AFTER THE ISSUES OF THE EARLY 1990S BURN LOW SERIOUS PEOPLE WILL TALK ABOUT THE FISCAL AND IN SOME WAYS MORAL QUESTION OF THE GENERATION WHO HAS PROVIDED FOR RETIREMENT OF THE BABY BOOMERS THAT MAY SOUND IN THE CLOUDS UP THERE WITH WHAT HAPPENS WHEN THE OZONE RUNS OUT OR OIL IS DEPLETED OR NO CURE IS FOUND FOR AIDS BUT IN THIS CASE THE STAGGERING TOLL IS ACTUARIALLY ESTIMABLE AND THE VARIABLES RATHER FEW ADD A LOT MORE NEW WORKERS STAY ON THE JOB THROUGH OUR MID70S OR SEE A TECHNOLOGICAL BREAKTHROUGH THAT MIRACULOUSLY SHOOTS UP PRODUCTIVITY OR START SAVING LIKE CRAZY IT TURNS OUT THAT SERIOUS PEOPLE ARE TALKING ABOUT THIS ENOUGH OF THEM TO FILL A SMALL MEETING ROOM WHICH THEY DID THIS MONTH IN WASHINGTON IT HAPPENED UNDER PRIVATE AUSPICES WHICH IS AS POLITICIANS WOULD PREFER THE LAST TIME OFFICIALS WERE FACED WITH THIS SIMMERING CRISIS THEY HAD TO DISPATCH ALAN GREENSPAN TO BROKER A RESCUE OF SOCIAL SECURITY SINCE THEN WE HAVE TRIED AS A NATION NOT TO TALK ABOUT TOUCHING RETIREMENT PROGRAMS A BRIEF CONTROVERSY FLARED THIS YEAR WHEN ALICIA MUNNELL LATER CONFIRMED AS ASSISTANT TREASURY SECRETARY WAS CONFRONTED WITH HER ARGUMENTS AS A BOSTON FED ECONOMIST FOR TAXING PENSION FUNDS LIKE ANY OTHER INCOME STREAM SHE RAN AWAY FROM THE IDEHAT FOR THE TIME BEING AS THE NATION'S LARGEST TAX EXPENDITURE PENSIONS REMAIN AN ENTICING PLUM TO BE PICKED FOR CURRENT EXPENDITURE IN FACT PECKS HAVE ALREADY BEEN TAKEN IN 1987 CONGRESS CHOSE TO LIMIT THE ABILITY OF COMPANIES TO OVERFUND THEIR RETIREMENT PLANS WHICH TAX CONSIDERATIONS LEAD THEM TO DO BUT TAXING PENSIONS MISSES THE POINT IN A BIG WAY THE US DESPERATELY NEEDS TO ENCOURAGE FUNDING OF RETIREMENT BY ANY MEANS POSSIBLE PENSIONS WHERE THEY ARE IN FORCE ARE PART OF THE ANSWER BUT BECAUSE REDUCTIONS IN REAL WAGES AND JOBTENURE HAVE CRIMPED PROSPECTIVE BENEFITS IN SOME CASES AND BECAUSE PENSION COVERAGE HASN'T KEPT PACE WITH WORK FORCE GROWTH EXISTING PLANS AREN'T A MATCH FOR THE LOOMING DEMAND FOR OLDAGE OUTLAYS THE MAGNITUDE OF THE GENERATIONAL SHIFT AHEAD IS APPREHENSIBLE IN THE ACCOMPANYING CHART IT IS FROM A PAPER BY STANFORD ECONOMIST JOHN SHOVEN AND SYLVESTER SCHIEBER RESEARCH DIRECTOR FOR BENEFITS ADVISER WYATT CO WHO YOU MIGHT SAY HAVE BOTH MADE A LIFE'S WORK OUT OF RETIREMENT THEIR LATEST CONTRIBUTION WAS TO ORGANIZE THE WASHINGTON CONCLAVE WHERE THIS TOPIC WAS AIRED THE CHART EFFECTIVELY MEASURES AN EXPECTED DEPLETION OF PRIVATE PENSION ASSETS AS THE BABYBOOM WRINKLES THE AUTHORS CAUTION THAT SWINGS OF THIS NATURE RESULT FROM BULGES IN AGE COHORTS AND DON'T NECESSARILY MEAN PUBLIC POLICY HAS FAILED THEY DO MEAN THAT ASSET PRICES ARE LIKELY TO SUFFER DURING THE SELLING WAVE BUT THE SCOPE OF THIS REVERSAL IN WHAT IS A 4 TRILLION SOURCE OF SAVINGS IN THE AMERICAN ECONOMY INDICATES STRESS IN THE SYSTEM THE PICTURE WOULD LOOK EVEN MORE EXTREME IF PUBLIC PENSIONS WERE INCLUDED AT THE SAME TIME MIND YOU THE SOCIAL SECURITY SURPLUS THAT WAS SUPPOSED TO CARRY ROCK N' ROLLERS THROUGH THEIR GOLDEN YEARS HAS SHRUNK DRAMATICALLY FROM WHAT WAS PROJECTED AT THE TIME OF MR GREENSPAN'S 1983 EXERCISE INSTEAD OF A TRUST FUND APEX OF MORE THAN 20 TRILLION IN 2045 THE PEAK IS NOW SEEN TO BE ABOUT 5 TRILLION IN 2025 THAT MONEY WILL BE EXHAUSTED BY 2035 INSTEAD OF 2063 AS INITIALLY BELIEVED PUT ALL THIS TOGETHER AND IT'S OBVIOUS THE PROMISED CHECKS WON'T BE IN THE MAIL FOR THE LATE BOOMERS THAT IS WHY THE DRY SUBJECT OF PENSIONS HAS SUCH A POWERFUL PUNCH IN ONE SENSE IT SPOTLIGHTS THE MORALPOLITICAL ABDICATION BY A CROSSSECTION OF AMERICANS YOUNG AND OLD WHO ARE LIVING FOR TODAY WITH LITTLE HELD BACK FOR TOMORROW BUT MISHANDLED IT MAY PROVIDE GRIST FOR MORE GOVERNMENT INTRUSION INTO INDIVIDUAL CHOICES IN ISOLATION PENSIONS APPEAR TO BE OKAY THE STANDARD PLAN MAY HAVE A MUSTY SMELL REDOLENT OF BIG MANUFACTURING'S HEYDAY AND ILLSUITED OUTSIDE THE STATIC PUBLIC SECTOR TODAY BUT THE PICTURE AS PAINTED BY THE EMPLOYEE BENEFITS RESEARCH INSTITUTE IS RATHER DIFFERENT TRADITIONAL DEFINED BENEFIT PLANS AS CUMBERSOME AS THEY MAY BE IN A FLUID ECONOMY HAVE HELD THEIR OWN OVERALL IN THE PRIVATE SECTOR SINCE 1985 UNDENIABLY THEY ARE POWERFUL MECHANISMS FOR FORCING SAVING BY THOSE WHO MIGHT OTHERWISE FREERIDE ON OTHERS DURING RETIREMENT HOWEVER VARIOUS FACTORS HAVE LED TO THE USE OF DEFINED CONTRIBUTION PENSION PLANS INCLUDING 401KS FOR NEARLY HALF OF COVERED WORKERS THESE SETUPS PREFERABLE IN THAT THEY GIVE FUTURE BENEFICIARIES MORE AUTONOMY DO NOT TEND TO BE AS RICH AS THE DEFINEDBENEFIT PLANS AND THEY FREQUENTLY ARE INVESTED IN UNDULY SAFE AND LOWYIELDING INSTRUMENTS ALSO THEY CAN BE TAKEN AS LUMPSUM PAYOUTS WHEN CHANGING JOBS AND THEN SPENT BREAKING THE CHAIN OF FORCED SAVING BUT IT'S POSSIBLE TO TAKE THE COMPULSORY THRIFT ARGUMENT TOO FAR FOR ONE THING BY SAVING LESS THAN HALF OF MOST LUMP SUMS AN AVERAGE WORKER CAN KEEP PACE WITH WHERE HE WOULD BE IN A DEFINEDBENEFIT ENVIRONMENT THE MAJOR PROBLEM IS THAT NOT ENOUGH AMERICANS ARE TIED INTO EITHER PENSION TYPE AND THE REMAINING SAVING ISN'T NEARLY ADEQUATE FOR THE RUN THAT'S COMING YET THERE'S A POLITICAL TRAP IN SIMPLY BEMOANING A LIVE FOR TODAY MENTALITY LOOK WHO ELSE IS DOING SO AT THE WASHINGTON MEETING IT WAS JOHN ROTHER THE REDISTRIBUTIONIST VOICE OF THE AMERICAN ASSOCIATION OF RETIRED PERSONS HE AND OTHERS WOULD LIKE TO SEE A MANDATORY FEDERAL REGIMEN IMPOSED WITH COMMENSURATE TAX INCREASES TO COVER GAPS AND INEQUITIES IN THE PENSION SYSTEM I SUSPECT THE EVERRICHER ARRAY OF SOCIAL SECURITY OUTLAYS HAS HAD A LOT TO DO WITH CAVALIER ATTITUDES TOWARD PROVISION FOR RETIREMENT AND THAT GREATER RELIANCE ON ITS SORT OF POLITICALLY DRIVEN FORMULAS FAR FROM FURTHERING PRUDENCE WOULD HAVE PRECISELY THE OPPOSITE EFFECT THE MARKETFRIENDLY PATCH FOR THE TEAR IN AMERICA'S RETIREMENT OZONE A MAJORITY IN THE WASHINGTON GROUP SEEMED TO AGREE WAS A TAX STRUCTURE THAT MORE WIDELY DISCOURAGES CONSUMPTION OR BETTER PUT EXEMPTS SAVINGS AS IT DOES WITH PENSIONS AND IRAS IDEALLY WITH SUFFICIENT SUCH STIMULI THERE'D BE ENOUGH OF A SOCIAL SURPLUS BUILT UP TO TAKE CARE OF THOSE WHO'D FRITTERED AWAY THEIR WORKING INCOMES BUT WE'RE A LONG LONG WAY FROM THAT POINT UNLIKE A LOT OF DIRE PROSPECTS THE PENSION HOLE IS UNLIKELY TO GO AWAY THE SOONER POLICYMAKERS LISTEN TO SERIOUS TALK ABOUT AN INCENTIVIST SOLUTION THE QUICKER THEY CAN RETIRE TO EASIER ISSUES 9310260084 931026 REVIEW & OUTLOOK EDITORIAL ASIDES GOP'S GORBY MANIA LAST MONTH MIKHAIL GORBACHEV ATTACKED BORIS YELTSIN FOR VIOLATING THE COMMUNISTERA CONSTITUTION BY DISMISSING PARLIAMENT AND CALLING FOR NEW ELECTIONS ALL THINGS CONSIDERED YOU'D THINK MR GORBACHEV WOULDN'T BE IN GREAT DEMAND AS A DINNER SPEAKER IN THE US WELL IT TURNS OUT HE'S BEING PAID 70000 TO APPEAR AT OF ALL PLACES A NOVEMBER 4 FUNDRAISER FOR THE REPUBLICAN SENATORIAL COMMITTEE ITS CHAIRMAN TEXAS SENATOR PHIL GRAMM EXPLAINS THAT MR GORBACHEV CURRENTLY PROMOTES COMMUNICATION AND DIPLOMACY AMONG ALL NATIONS NO MENTION OF THE FACT THAT MOST OF HIS LIFE WAS SPENT PROMOTING AND PRESERVING A MONSTROUS SYSTEM AND THAT HIS EVENTUAL COMPROMISES WERE SUPPOSED TO SOMEHOW SAVE THE COMMUNIST PARTY FROM EXTINCTION BUT WE GUESS SUCH NUANCES ARE ALIEN TO THE WORLD OF POLITICAL DONORS WHEN COLUMNIST BOB NOVAK ASKED A GOP SENATOR IF FIDEL CASTRO WOULD BE THEIR COMMITTEE'S NEXT HONORED GUEST HE WAS TOLD IN ALL SERIOUSNESS NO I DON'T THINK HE WOULD BE A BIG ENOUGH DRAW NO DOUBT THE REPUBLICANS WILL RECONSIDER AFTER FIDEL'S OWN PEOPLE BOOT HIM OFF THE ISLAND 9310260083 931026 TECHNOLOGY & SCIENCE APPLE'S NEW 3IN1 UNIT COMBINES PC CD AND TV CUPERTINO CALIF APPLE COMPUTER INC UNDERSCORING ITS STRATEGY TO REACH NEW USERS AT HOME AND IN SCHOOLS HAS LAUNCHED A PRODUCT THAT COMBINES A MACINTOSH PERSONAL COMPUTER TELEVISION AND STEREO COMPACTDISK PLAYER INTO ONE UNIT THE MACINTOSH TV PRICED AT 2079 IS A USONLY SPECIALEDITION PRODUCT AND WILL BE AVAILABLE AT SELECTED RETAIL STORES AND COLLEGE CAMPUSES AS WELL AS THROUGH THE APPLE CATALOG BESIDES A COMPUTER WITH SOFTWARE PROGRAMS FOR WORD PROCESSING SPREADSHEET AND DATABASE THE MACINTOSH TV FEATURES A 14INCH COLOR TV THAT CAN CONNECT TO A VIDEOCASSETTE RECORDER CAMCORDER VIDEO LASERDISK PLAYER OR VIDEOGAME PLAYER THE UNIT ALSO CONTAINS A CDROM A DEVICE THAT STORES LARGE AMOUNTS OF COMPUTER DATA ON COMPACT DISK WITH THE COMPUTER INDUSTRY AND CONSUMERELECTRONICS MARKET CONVERGING BRODIE KEAST DIRECTOR OF PRODUCT MARKETING FOR APPLE'S PC DIVISION SAID THE COMPANY HOPES TO LEARN MORE ABOUT THE NEEDS OF THE CONSUMER MARKET THROUGH SALES OF MACINTOSH TV AND TO APPLY THAT KNOWLEDGE TO FUTURE PRODUCT DEVELOPMENT 9310260082 931026 LETTERS TO THE EDITOR DISTORTED DATA CONFUSE DEBATE ON INCINERATION STEPHEN A LOESCHNER'S SEPT 17 LETTER IS A GOOD EXAMPLE OF THE INCORRECT INFORMATION BEING FED TO THE PUBLIC ABOUT WASTE INCINERATION MR LOESCHNER CLAIMS THE EUROPEAN INCINERATOR DIOXIN EMISSION STANDARD IS MUCH LOWER THAN THE DIOXIN EMISSION LIMIT PROPOSED BY THE US ENVIRONMENTAL PROTECTION AGENCY IN THE MAY 1993 DRAFT COMBUSTION STRATEGY THIS CLAIM AND HIS COMPARISON OF THESE TWO NUMBERS IS TECHNICALLY INCORRECT AND MISLEADING THE EUROPEAN AND US EPA EMISSION NUMBERS HE COMPARED HAVE A DIFFERENT BASIS THE EUROPEAN STANDARD OF 01 NANOGRAMS PER DRY STANDARD CUBIC METER IS BASED ON TOXIC EQUIVALENTS AND THE EPA'S PROPOSED DIOXIN LIMIT OF 30 NANOGRAMS PER DRY STANDARD CUBIC METER IS BASED ON TOTAL MASS EMISSIONS OF SPECIFIC POLYCHLORINATED DIBENZOPDIOXINS DIOXINS AND SPECIFIC POLYCHLORINATED DISBENZOFURANS FURANS TOXIC EQUIVALENT VALUES ARE CALCULATED BY MULTIPLYING THE TOTAL MASS EMISSIONS OF THESE SPECIFIC DIOXINS AND FURANS BY TOXIC EQUIVALENCY FACTORS THAT RANGE FROM 0001 TO 10 AND ADDING THE MULTIPLIED NUMBERS CONSEQUENTLY THE TOXIC EQUIVALENTS NUMBER IS ALWAYS A SIGNIFICANTLY LOWER NUMBER THAN TOTAL MASS EMISSIONS IN OTHER WORDS DEPENDING ON WHICH SPECIFIC DIOXINS AND FURANS ARE PRESENT IN A COMBUSTION GAS A MEASURED DIOXIN AND FURAN MASS EMISSION AT THE EPA'S PROPOSED LIMIT OF 30 NANOGRAMS PER DRY STANDARD CUBIC METER COULD BE LOWER HIGHER OR THE SAME AS THE EUROPEAN STANDARD IN TERMS OF TOXIC EQUIVALENTS 9310260081 931026 STAMPING OUT TV VIOLENCE A LOSING FIGHT BY ELIZABETH JENSEN AND ELLEN GRAHAM STAFF REPORTERS OF THE WALL STREET JOURNAL WHEN ATTORNEY GENERAL JANET RENO TOOK TELEVISION BROADCASTERS TO TASK LAST WEEK FOR VIOLENT PROGRAMMING IT WAS BUT THE LATEST ROUND IN 40 YEARS OF GOVERNMENT SWORDRATTLING OVER THE MEDIUM'S POWER OVER CHILDREN DESPITE DECADES OF ANGUISH HOWEVER NEITHER THE GOVERNMENT NOR PROGRAMMERS HAVE FIGURED OUT WHAT TO DO ABOUT TELEVISED VIOLENCE VIOLENCE ON TELEVISION AND RISKY COPYCAT BEHAVIOR IS AS OLD AS THE MEDIUM ITSELF THE ORIGINAL 1950S SUPERMAN SERIES INCITED A FEW CHILDREN TO LEAP OFF ROOFTOPS IN IMITATION OF THE SOARING STAR HELPING SET THE STAGE FOR THE FIRST CONGRESSIONAL TVVIOLENCE HEARINGS TODAY MUCH OF THE VIOLENCE ON TELEVISION HAS MOVED AWAY FROM NETWORK SERIES ONTO NEWS AND NEWSMAGAZINE SHOWS AND ESPECIALLY ONTO CABLE WHERE MOVIES AND MUSIC VIDEOS OFTEN GLORIFY AND EROTICIZE BRUTALITY TV VIOLENCE HAS TRADITIONALLY BEEN MEASURED QUANTITATIVELY BY RESEARCHERS WHO COUNT INCIDENTS OF REAL OR THREATENED PHYSICAL INJURY THIS ESSENTIALLY GIVES EQUAL WEIGHT TO BUGS BUNNY BOPPING ELMER FUDD WITH A CARROT AND AN UZIARMED PSYCHOPATH PICKING OFF A TERRORIZED AND HELPLESS VICTIM MOST SUCH ANALYSES SHOW A FAIRLY STABLE LEVEL OF PRIMETIME VIOLENCE OVER THE PAST 25 YEARS OR FIVE INCIDENTS PER HOUR SAYS UNIVERSITY OF DELAWARE RESEARCHER NANCY SIGNORELLI THOUGH SHE ADDS THAT THE MOST RECENT STUDY FOUND MAYHEM IN FEWER SHOWS MANY CRITICS HOWEVER BELIEVE THERE IS A MORE DANGEROUS QUALITATIVE CHANGE TOWARD VIOLENCE THAT SEEMS MORE REALISTIC AND MORE GLAMOROUS WE NEED TO GET BEYOND SIMPLE COUNTS OF PHYSICAL INJURY AND LOOK AT THE CONTEXT SAYS EDWARD DONNERSTEIN PROFESSOR OF COMMUNICATIONS AT THE UNIVERSITY OF CALIFORNIA AT SANTA BARBARA HE DRAWS A DISTINCTION BETWEEN VIOLENCE IN ACCLAIMED MINISERIES LIKE ROOTS OR HOLOCAUST AND GRATUITOUS BRUTALITY SHOWN IN MOVIES LIKE THE TERMINATOR OR FRIDAY THE 13TH WHICH ARE SHOWN UNEDITED ON PAYCABLE CHANNELS THE LATTER KIND OF VIOLENCE IS WHAT IS SO TROUBLING TO POLICY MAKERS AND VIEWERS HE SAYS LAMENTING THAT CONTENT ANALYSIS OF TELEVISION STILL DOESN'T MEASURE THE TYPE OF VIOLENCE BEING SHOWN MICHAEL DANN A VETERAN NETWORK PROGRAMMER WHO STARTED AT NBC IN 1950 AND RAN CBS ENTERTAINMENT IN THE LATE 1960S HAS TESTIFIED NINE TIMES BEFORE CONGRESS ON TELEVISION VIOLENCE DEFENDING EVERYTHING FROM WESTERNS TO POLICE SHOWS HE ARGUES THAT SERIES TELEVISION IS LESS VIOLENT TODAY THAN AT ANY TIME SINCE THE 1950S WHAT HAS CHANGED HE SUGGESTS IS REALITY NOT ONLY IS SOCIETY ITSELF MORE VIOLENT TODAY BUT LOCAL NEWS NETWORK NEWS THE FRONT PAGE OF THE NEWSPAPER AND MAGAZINES REFLECT THAT VIOLENCE BACK INTO THE NATION'S LIVING ROOMS I HAVE NEVER SEEN SO MUCH REALWORLD COVERAGE OF VIOLENCE SEPARATE FROM ENTERTAINMENT PROGRAMMING AS NOW HE SAYS THE ENDLESSLY REPLAYED VIDEO FOOTAGE OF THE RODNEY KING AND REGINALD DENNY BEATINGS IN LOS ANGELES ARE OBVIOUS EXAMPLES OF BRUTAL REALITY FOOTAGE DR DONNERSTEIN OBSERVES THAT UNLIKE GRATUITOUS FICTIONALIZED VIOLENCE CALCULATED TO ELICIT CHEERS FROM AUDIENCES SUCH NEWS PROGRAMMING DEPRESSES MOST VIEWERS WE SEE THE REAL INJURY AND PEOPLE ARE BOTHERED HE SAYS AND THAT'S A MUCH MUCH DIFFERENT SITUATION TOGETHER ABC CBS NBC AND FOX DEVOTE NINE PRIMETIME HOURS A WEEK TO NEWS MAGAZINES UP FROM JUST TWO HOURS A DECADE AGO CRIME IS A FREQUENT TOPIC ON SUCH SHOWS FOX A UNIT OF NEWS CORP ALSO HAS A SLATE OF REALITY SHOWS INCLUDING AMERICA'S MOST WANTED AND COPS WHICH ALSO ARE CREDITED WITH OCCASIONALLY APPREHENDING CRIMINALS LOCAL STATIONS' NEWS PROGRAMS ARE FILLED WITH CRIME STORIES AS ARE PROMOTIONAL SPOTS TEASING LATENIGHT NEWSCASTS ALL ADD TO THE PERCEPTION THAT PRIMETIME IS VIOLENT WHEN IT COMES TO ENTERTAINMENT SHOWS ABC CBS AND NBC HAVE ONLY A HANDFUL OF SERIES THAT CONTAIN SPORADIC VIOLENCE AMONG THEM ARE NYPD BLUE FROM ABC A UNIT OF CAPITAL CITIES/ABC INC AND WALKER TEXAS RANGER FROM CBS INC'S CBS NETWORK ONE REASON IN RECENT YEARS SITUATION COMEDIES HAVE DELIVERED BETTER NIELSEN RATINGS THAN ACTIONADVENTURE SHOWS A LIST OF CHILDREN'S TOP10 PRIMETIME SHOWS IN 198283 CONTAINED FOUR ADVENTURE PROGRAMS INCLUDING NBC'S EXCEEDINGLY VIOLENT ATEAM TODAY BY CONTRAST THE KIDS' TOP10 LIST INCLUDES ONLY SITCOMS CURRENTLY THE MOST VIOLENT CONTENT FOUND ON THE NETWORKS IS IN LURID MADEFORTELEVISION MOVIES CHRONICLING EVERYTHING FROM THE SAGA OF AMY FISHER TO THE GOVERNMENT'S SIEGE AT CULT LEADER DAVID KORESH'S WACO TEXAS HEADQUARTERS BUT EVEN THESE ARE NOT AS VIOLENT AS MANY OF THE UNCUT MOVIES SHOWN ON CABLE WHERE STANDARDSANDPRACTICES EXECUTIVES THE INDUSTRY'S INHOUSE CENSORS TEND TO GIVE PRODUCERS MORE CREATIVE FREEDOM IT IS ALSO MOSTLY ON CABLE THAT RERUNS OF OLD WESTERNS AND POLICE DRAMAS HAVE FOUND NEW LIFE CABLE NETWORK COMEDY CENTRAL IS EVEN PARODYING THE UPROAR OVER VIOLENT TELEVISION ON OCT 30 IT PLANS TO LAUNCH DRIVEIN REVIEWS RATING THE MOSTVIOLENT MOMENTS ON FILM ALL WE'RE ASKING FOR IS TO BE SCRUTINIZED FOR WHAT WE PUT ON THE AIR SAYS ROSALYN WEINMAN VICE PRESIDENT OF BROADCAST STANDARDS AND PRACTICES AT GENERAL ELECTRIC CO'S NBC SHE ADDS THAT THE NETWORK IS FULLY PREPARED TO DEFEND ITS PROGRAMS BUT SHE ADDS WE'RE BEING TARRED WITH THE BRUSH OF THE ENTIRE MEDIA LANDSCAPE OF WHICH WE'RE A SMALL PART AND THE PART WITH MOST CHECKS AND BALANCES DAVID BIANCULLI TELEVISION CRITIC FOR THE NEW YORK DAILY NEWS THINKS MS WEINMAN HAS A POINT WASHINGTON ISN'T MAKING A SUFFICIENTLY CLEAR DISTINCTION BETWEEN PROGRAMMING ON THE NETWORKS SYNDICATION AND CABLE HE SAYS TAKING BROADSIDE POTSHOTS AT TELEVISED VIOLENCE HE SAYS IS A NOLOSE SITUATION FOR POLITICIANS THERE'S NO LOBBY SAYING VIOLENCE IS GOOD RECENT POLLS SHOW THAT MORE THAN 80 OF THE PUBLIC IS CONCERNED ABOUT MEDIA VIOLENCE NETWORKTV VIOLENCE PEAKED IN THE 1980S WITH MIAMI VICE RERUNS OF WHICH ARE AIRED TODAY IN SYNDICATION MR BIANCULLI SAYS HE AND OTHER MEDIA WATCHERS BLAME CABLE AND ITS UNEDITED HOLLYWOOD MOVIES FOR THE VIOLENCE PROBLEM THE ORIGINAL EARLY1960S NETWORK SERIES THE UNTOUCHABLES WAS ABOUT AS RAW AS EITHER TV OR MOVIES GOT UP TO THAT TIME MR BIANCULLI SAYS BUT A FEW YEARS LATER THE FILM BONNIE AND CLYDE WAS RELEASED AND HOLLYWOOD TOOK A QUANTUM LEAP BEYOND TV IN VIOLENT CONTENT A LEAD HE SAYS MOVIES HAVE HELD EVER SINCE THE UNIVERSITY OF CALIFORNIA'S DR DONNERSTEIN BELIEVES THE ISSUE OF TV VIOLENCE HAS ASSUMED ITS CURRENT URGENCY BECAUSE OF THE MEDIUM'S INTRUSIVENESS IN THE HOME THE BIG CHANGE IN THE PAST DECADE IS CHILDREN'S ACCESS TO CABLE VIDEO ON DEMAND RENTAL VIDEOS AND OTHER MEDIA THROUGH THE TV BOX HE SAYS A NUMBER OF LEGISLATORS APPEAR DETERMINED TO FIND WAYS TO REGULATE TV VIOLENCE PARTICULARLY ON THE BROADCAST NETWORKS DESPITE OBVIOUS FIRST AMENDMENT HURDLES AMONG THE CURRENT PROPOSALS PROVIDING A SAFE HARBOR THAT EXCLUDES VIOLENT SHOWS WHILE KIDS ARE LIKELY TO BE WATCHING ORDERING THE FEDERAL COMMUNICATIONS COMMISSION TO FORCE BROADCAST STATION LICENSEES AND CABLE FRANCHISEES TO LABEL SHOWS CONTAINING VIOLENCE OR UNSAFE GUN PRACTICES AND INSTRUCTING THE FCC TO ISSUE QUARTERLY REPORT CARDS ON THE LEVELS OF VIOLENCE ON TV ATTORNEY GENERAL RENO RAISED EYEBROWS WHEN SHE TESTIFIED LAST WEEK THAT THE PROPOSED BILLS WOULD BE CONSTITUTIONAL ROBERT S PECK LEGISLATIVE COUNSEL FOR THE AMERICAN CIVIL LIBERTIES UNION ARGUES THAT NONE OF THE BILLS WOULD PASS CONSTITUTIONAL MUSTER HE CITES A LONG LIST OF CASES TO BACK UP HIS POINT AMID THE CLAMOR THE DAILY NEWS'S MR BIANCULLI OFFERS SOME HISTORICAL PERSPECTIVE BACK IN THE 1920S IT SEEMS THAT A FUROR AROSE OVER A CHILD WHO HAD KILLED HIS FATHER WITH A CARVING KNIFE AFTER WATCHING A SILENT MOVIE OF THE INCIDENT GK CHESTERTON WROTE AT THE TIME THIS MAY POSSIBLY HAVE OCCURRED THOUGH IF IT DID ANYBODY OF COMMON SENSE WOULD PREFER TO HAVE DETAILS OF THAT PARTICULAR CHILD RATHER THAN ABOUT THAT PARTICULAR PICTURE 9310260080 931026 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED OCT 22 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER CORONA CALIF REDEVELOPMENT AGENCY WILL REDEEM ON NOV 15 1993 2700000 PRINCIPAL AMOUNT OF THE FOLLOWING CALIFORNIA RESIDENTIAL MORTGAGE BONDS ISSUE 1979 8625 DUE NOV 15 1994 AND 9 DUE NOV 15 2012 BANK OF AMERICA GLENDALE CALIF IS TRUSTEE AUTHORITY NJ WILL REDEEM ON NOV 22 1993 THE FOLLOWING POLLUTION CONTROL REVENUE BONDS 625 1975 SERIES DUE FEBRUARY 1 2000 AND 7 SERIES 1982 DUE NOV 1 2012 MIDLANTIC BANK NEW JERSEY IS TRUSTEE PARMA OHIO WILL REDEEM ON DEC 1 1993 400000 PRINCIPAL AMOUNT OF ITS 6 3/8 HOSPITAL IMPROVEMENT REVENUE BONDS SERIES 1974 DUE DEC 1 1999 SOCIETY NATIONAL BANK CLEVELAND IS TRUSTEE APPALACHIAN POWER CO WILL REDEEM ON NOV 21 1993 ITS 812 AND 852 CUMULATIVE PREFERRED STOCK FIRST CHICAGO TRUST CO NEW YORK IS REDEMPTION AGENT BANKAMERICA CORP WILL REDEEM ON NOV 22 1993 ITS FLOATING RATE SENIOR EURO MEDIUMTERM NOTES SERIES D DUE AUGUST 21 1995 BANKERS TRUST CO UNITED KINGDOM IS PAYING AGENT 9310260079 931026 REVIEW & OUTLOOK EDITORIAL CIVIC LESSONS MOVE ALONG NOW HOW MANY CITY DWELLERS CONDEMNED TO DAILY ENCOUNTERS WITH URBAN LAYABOUTS DO NOT DREAM OF HEARING THOSE REASSURING WORDS FROM THE COP ON THE BEAT MOVE ALONG THE COPS ONCE SAID TO FOLKS ENGAGED IN BEHAVIOR MOST ANYBODY BUT CARDCARRYING MEMBERS OF THE ACLU FOUND UNCIVIL EVEN REPUGNANT SAY SLEEPING ON THE SIDEWALK AND URINATING EXPRESSIVELY WHEN YOU FINALLY GOT UP FOR SOME HEAVY PANHANDLING THE VAGRANCY LAWS THAT PERMITTED LIFE TO PROCEED IN A MORE OR LESS ORDERLY FASHION WERE KNOCKED OUT OF THE BOOKS A LONG WHILE AGO GRADUALLY ERODING ALL NOTIONS OF WHAT CONSTITUTES ACCEPTABLE PUBLIC BEHAVIOR BUT NOW THE CLASS OF NEWWAVE MAYORS WHO PRESIDE OVER ALL THIS ANTIURBANITY MIGHT PAY ATTENTION TO WHAT'S GOING ON WITH ONE OF THEIR NUMBER FRANK JORDAN OF SAN FRANCISCO MR JORDAN GOT ELECTED TWO YEARS AGO BY DEFEATING THE LIBERAL INCUMBENT ART AGNOS THE BIGGEST ISSUE WAS THE HOMELESS IN AN ANYTHINGGOES TOWN ANYTHING EXCEPT DEVELOPMENT OF ONE'S PROPERTY THAT IS THE SPILLOVER ON THE STREETS FROM THE SOCIAL REVOLUTION OF THE '60S '70S AND '80S JUST GOT TO BE TOO MUCH FOR A MAJORITY OF VOTERS AFTER HIS SURPRISING WIN MR JORDAN MADE A HASH OF NEARLY EVERYTHING HE TRIED TO BE MR NICE GUY ACCOMMODATING HIS FOES WHILE GENERALLY BUMBLING FROM ONE GAFFE TO THE NEXT SAN FRANCISCANS SAW LITTLE OF THE TOUGHNESS THEY'D HOPED TO GET FROM THIS FORMER POLICE CHIEF NOW WITH THE PROSPECT OF DEFEAT IN 1995 FOCUSING HIS MIND THE MAYOR HAS RETURNED TO HIS CAMPAIGN TACK AND POLITICS IN THE CITY ARE BEGINNING TO DIVIDE AGAIN ALONG LINES OF THE '90S BOLSTERED BY A CITY REFERENDUM FOR WHICH HE WON APPROVAL MAYOR JORDAN RECENTLY BEGAN A CRACKDOWN AGAINST VAGRANTS IN THE DOWNTOWN SHOPPING AND GOVERNMENT DISTRICTS MORE THAN 1400 CITATIONS OR ARRESTS HAVE RESULTED FOR OFFENSES SUCH AS AGGRESSIVELY PANHANDLING USING THE STREETS AS A TOILET OR SLEEPING IN DOORWAYS NEIGHBORHOOD RESIDENTS AND BUSINESS PEOPLE ARE DELIGHTED THOUGH WHEN ENFORCEMENT EBBS ON SOME DAYS MARKET STREET IS AS BAD AS EVER MEANWHILE MR JORDAN IS PUSHING A NEW MEASURE ON THE NOV 2 BALLOT TO MAKE IT HARDER TO GET ON LOCAL WELFARE AND TO COMPEL RECIPIENTS TO DO MENIAL WORK HIGH GENERALRELIEF CHECKS IN SAN FRANCISCO LONG HAVE HELPED TO ATTRACT FULLTIME BUMS FROM SURROUNDING AREAS IF THE VOTERS SAY YES THAT MAY HELP TO CONFIRM THE MAYOR IN HIS REGAINED SENSE OF DIRECTION ON BOTH THESE FRONTS MR JORDAN IS OPPOSED BY A PHALANX OF POVERTY LAWYERS ACTIVIST GROUPS AND POLITICIANS WHO THINK THEY CAN RUN AT HIM FROM THE LEFT MAYBE THE 1992 NATIONAL ELECTION MISLED THEM BUT SOME FOLKS BELIEVE THE LEFT'S ETHOS STILL REIGNS IN URBAN AMERICA THE SAN FRANCISCO SAGA IS AN EXTREME EXAMPLE OF WHAT CONFRONTS MOST US METROPOLISES AS ELSEWHERE ITS STREET PROBLEMS WERE MADE WORSE WHEN SKIDROW HOUSING WAS RAZED FOR TAXPAID REDEVELOPMENT AT THE SAME TIME A PHILOSOPHY OF ALLOWING THE BEDRAGGLED TO DEGRADE EVERYONE'S QUALITY OF LIFE STEADILY TOOK HOLD NEW POLITICS OR NOT IT TAKES STRENGTH TO REVERSE THIS COURSE MAYOR JORDAN'S WAVERING MADE THE LIFTING HEAVIER LEADERS OF OTHER CITIES SHOULD TAKE HEED 9310260078 931026 LETTERS TO THE EDITOR HEALTH CARE FEE ADVICE THAT MAY BE ILLEGAL IN REGARD TO THE SEPT 10 ARTICLE CONSUMERS SQUEEZED AS INSURERS DISPUTE USUAL AND CUSTOMARY' MEDICAL FEES IN THE BOX CAPTIONED ADVICE FOR THE INSURED YOU RECOMMEND AS A WAY OF LIMITING OUTOFPOCKET EXPENSES THAT THE READER ASK HIS OR HER HEALTH CARE PROVIDER TO ACCEPT THE HEALTH INSURER'S REIMBURSEMENT AS PAYMENT IN FULL FOR A MEDICAL PROCEDURE THE READER IS THUS TOLD THAT HE OR SHE MAY AVOID PAYING ANY DIFFERENCE BETWEEN THE PROVIDER'S CHARGE FOR A PARTICULAR PROCEDURE AND THE AMOUNT OF THE INSURANCE REIMBURSEMENT AS A LAW FIRM THAT ADVISES HEALTH CARE PROVIDERS ON VARIOUS REIMBURSEMENT ISSUES WE WISH TO POINT OUT THAT THE SUGGESTED PRACTICE CONTRAVENES MOST INSURANCE CONTRACTS AND MAY BE ILLEGAL UNDER BOTH STATE LAW AND THE FEDERAL MEDICARE PROGRAM MOST INDEMNITY INSURANCE POLICIES CONTAIN COPAYMENT REQUIREMENTS THAT PROVIDE THAT THE INSURER WILL ONLY PAY A CERTAIN PERCENTAGE EG 80 OF THE ALLOWED AMOUNT FOR A PARTICULAR PROCEDURE UNDER THE INSURANCE CONTRACT THE INSURED IS RESPONSIBLE FOR PAYING THE REMAINING PORTION WHEN A PROVIDER AGREES TO ACCEPT THE INSURANCE COMPANY'S REIMBURSEMENT AS PAYMENT IN FULL FOR A PARTICULAR PROCEDURE IT IS ENGAGING IN A PRACTICE REFERRED TO AS WAIVING THE PATIENT'S COPAYMENT OBLIGATION INSURANCE COMPANIES TAKE THE POSITION THAT SUCH WAIVERS IF GRANTED ROUTINELY 1 UNDERCUT THE PURPOSE OF COPAYMENTS IE TO REQUIRE INSURED INDIVIDUALS TO CONSIDER THE FINANCIAL CONSEQUENCES OF THEIR MEDICAL TREATMENT DECISIONS AND 2 RESULT IN A MISREPRESENTATION OF THE PROVIDER'S ACTUAL CHARGE PROVIDERS WHO ENGAGE IN SUCH CONDUCT MAY BE SUBJECT TO CIVIL AND CRIMINAL PENALTIES AS WELL AS PROFESSIONAL DISCIPLINARY ACTION BY STATE LICENSING BOARDS THE DEPARTMENT OF HEALTH AND HUMAN SERVICES SIMILARLY TAKES THE POSITION THAT ROUTINE WAIVERS OF MEDICARE COPAYMENT OBLIGATIONS OTHER THAN THOSE RELATING TO INPATIENT HOSPITAL SERVICES VIOLATE FEDERAL LAW ABSENT FINANCIAL HARDSHIP INDIVIDUALS INSURED UNDER INDEMNITY POLICIES OR THE MEDICARE PROGRAM MAY BE PROPOSING ILLEGAL AND/OR UNETHICAL CONDUCT IF THEY ASK THE PROVIDER TO WAIVE ANY COPAYMENT REQUIREMENTS AND TO ACCEPT THE INSURER'S REIMBURSEMENT AS PAYMENT IN FULL 9310260077 931026 TECHNOLOGY & SCIENCE US HEALTHCARE SAYS EARNINGS ADVANCED 63 BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL US HEALTHCARE INC SAID THIRDQUARTER EARNINGS SOARED 63 ON THE STRENGTH OF LOWER COSTS AND INCREASED ENROLLMENT IN ITS HEALTH PLANS REVENUE GAINED 20 ANALYSTS SAID THE RESULTS FOR THE BLUE BELL PA HEALTH MAINTENANCE ORGANIZATION ARE ANOTHER SIGN THAT HEALTH COSTS IN THE US ARE MODERATING AFTER YEARS OF DOUBLEDIGIT INFLATION THE COMPANY'S MEDICAL COST RATIO ITS COSTS AS A PERCENTAGE OF PREMIUMS WAS 721 IN THE THIRD QUARTER COMPARED WITH 783 A YEAR AGO THE RATIO REFLECTS BOTH THE ABILITY OF THE COMPANY TO MANAGE COSTS AND WHAT IT PAYS FOR DOCTOR HOSPITAL PHARMACEUTICAL AND LABORATORY SERVICES MEDICALCARE INFLATION HAS FALLEN OFF DRAMATICALLY SAID MARGO VIGNOLA HEALTHCARE ANALYST AT SALOMON BROTHERS THE LABOR DEPARTMENT RECENTLY REPORTED MEDICAL PRICES CLIMBED JUST 42 IN THE THIRDQUARTER AND LARGE EMPLOYERS ARE SEEING INCREASES IN HEALTH COSTS IN THE RANGE OF 6 TO 8 THIS YEAR AFTER YEARS OF DOUBLEDIGIT INCREASES MEANTIME EARNINGS AT PHARMACEUTICAL CONCERNS AND SOME MEDICALDEVICE COMPANIES ARE DOWN FROM PREVIOUS YEARS US HEALTHCARE SAID NET WAS 783 MILLION OR 72 CENTS A SHARE COMPARED WITH 479 MILLION OR 44 CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO 6742 MILLION FROM 5606 MILLION THE COMPANY SAID THE MAIN REASON FOR THE STRONG QUARTER WAS THE EFFECTIVENESS OF ITS MANAGEDCARE PROGRAMS IN CONTROLLING THE USE OF MEDICAL SERVICES NOT LOWER INFLATION THE PROGRAMS WE HAVE INSTITUTED TO KEEP MEDICAL COSTS IN CHECK ARE WORKING VERY WELL SAID COSTAS C NICOLAIDES EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER HE SAID THE LOWER USE OF SERVICES PARTICULARLY FEWER HOSPITAL DAYS PER THOUSAND MEMBERS AND THE FACT THAT MORE MEMBERS ARE USING HOSPITALS AND OTHER PROVIDERS THAT HAVE CONTRACTS WITH US HEALTHCARE WERE IMPORTANT FACTORS IN THE PERFORMANCE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE US HEALTHCARE GAINED 225 OR 52 TO 4575 OTHER MAJOR PUBLICLY TRADED HMOS HAVE YET TO REPORT THIRDQUARTER RESULTS BUT ANALYSTS EXPECT MANY OF THEM TO REPORT ROBUST GROWTH RANGING FROM ABOUT 25 AT FHP INTERNATIONAL CORP FOUNTAIN VALLEY CALIF TO MORE THAN 80 AT OXFORD HEALTH PLANS INC DARIEN CONN ANALYSTS CITED LOWER COSTS AS IMPORTANT FACTORS IN THE EXPECTED RESULTS OUR COSTS ARE PROBABLY 7 TO 8 HIGHER THIS YEAR SAID DAVID KOPPE VICE PRESIDENT TREASURER AND CONTROLLER AT UNITED HEALTHCARE CORP MINNEAPOLIS THAT COMPARES WITH ABOUT 10 IN 1992 HE EXPECTS THE 1994 INCREASE TO COME IN EVEN LOWER 6 TO 7 HE SAID THE COMPANY WON'T DISAPPOINT ANALYSTS WHO EXPECT TO REPORT EARNINGS GROWTH OF ABOUT 40 FOR THE THIRD QUARTER TO 59 CENTS A SHARE FROM 42 CENTS ANOTHER FACTOR DRIVING HMO RESULTS IS GROWING ENROLLMENT WHICH WAS UP 11 AT US HEALTHCARE TO 1535000 MEMBERS THAT IS BEING FUELED IN LARGE PART BY PUBLICITY OVER HEALTHCARE REFORM SAYS ELEANOR KERNS ANALYST AT ALEX BROWN & CO PEOPLE ARE REVISITING HMOS AND ARE FINDING THAT THEY'VE CHANGED A LOT IN THE LAST 20 YEARS AND THAT MAYBE THEIR OLD PERCEPTIONS AREN'T VALID ANY MORE THIS MONTH US HEALTHCARE'S STRONG PERFORMANCE GOT IT IN TROUBLE WITH NEW YORK STATE INSURANCE REGULATORS WHO NOT ONLY DENIED A REQUESTED RATE INCREASE BUT DECIDED TO ROLL BACK THE COMPANY'S RATES IN THE STATE 39 IN 1994 THE COMPANY HAS SAID IT IS APPEALING THE DECISION 9310260076 931015 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY AMY STEVENS HOW DO CORPORATE CLIENTS PICK TAKEOVER LAWYERS FOR THE BIGGEST DEALS OF THE '90S IF THE EXPERIENCE OF SKADDEN ARPS SLATE MEAGHER & FLOM IS ANY INDICATION THE PROCESS IS TOUGHER ON LAWYERS THAN IT USED TO BE BUT MAY YIELD COST SAVINGS FOR CLIENTS SKADDEN WAS THE UNDISPUTED CHAMPION OF THE TAKEOVER BAR IN THE '80S A DECADE OF COURTROOM WARS AND SATURDAYNIGHT CORPORATE RAIDS IT WAS A TIME WHEN COMPANIES SHELLED OUT A SEVENFIGURE ANNUAL RETAINER JUST TO KEEP SKADDEN PATRIARCH JOSEPH FLOM FROM WORKING FOR THE OTHER SIDE AND VICTORIOUS CLIENTS PAID HUGE FEE PREMIUMS IN THEIR POSTDEAL STUPOR OF GRATITUDE BUT CUT TO THE BIGGEST DEAL OF THE CURRENT DECADE AND YOU FIND SKADDEN SLUGGING IT OUT WITH THREE COMPETITORS FOR THE CHANCE TO REPRESENT BELL ATLANTIC CORP IN ITS PLANNED ACQUISITION OF TELECOMMUNICATIONS INC FOR AT LEAST 118 BILLION IN THE OLD DAYS IT WOULD HAVE BEEN NEARLY UNTHINKABLE FOR THE FIRM TO GO HAT IN HAND TO A CLIENT RATHER THAN VICE VERSA WHAT CHANGED DID SKADDEN LOSE SOME OF ITS SPECIAL APPEAL OR DID COMPANIES CHANGE THEIR APPROACH TO LEGAL WORK SINCE THE LAST TAKEOVER BOOM LIKE MOST MAJOR CORPORATE LAW FIRMS SKADDEN BEGAN TO SUFFER IN 1990 WHEN TAKEOVER WORK PLUMMETED PROFITS DECLINED AND A NUMBER OF LAWYERS WERE DISMISSED WHILE OTHERS BECAME EDGY ENOUGH TO DEPART ON THEIR OWN BUT SKADDEN FACED AN ADDITIONAL ISSUE ITS BESTKNOWN LAWYER MR FLOM WAS BECOMING LESS ACTIVE IN THE FIRM AND SUCCESSION WASN'T CLEAR THE FIRM WHICH HAD GROWN TO MORE THAN 1100 LAWYERS ON THE STRENGTH OF ITS MERGERSANDACQUISITIONS REVENUE BEGAN TO LOSE ITS PRIMARY REPUTATION AS AN M&A SHOP AND STARTED TO LOOK MORE LIKE ANY LARGE MULTISERVICE OPERATION THAT INCLUDED BANKRUPTCY CORPORATE FINANCE AND PATENT PRACTICES WHEN MERGERS STARTED REAPPEARING EARLIER THIS YEAR SOME COMPETITORS WERE QUICK TO QUESTION WHETHER SKADDEN HAD ITS OLD CLOUT THEY POINTED TO TWO OF THE YEAR'S BIGGEST DEALS IN WHICH THE FIRM WASN'T TO BE SEEN AMERICAN TELEPHONE & TELEGRAPH CO'S PLANNED 126 BILLION MERGER WITH MCCAW CELLULAR COMMUNICATIONS INC AND MERCK & CO'S INTENDED 6 BILLION ACQUISITION OF MEDCO CONTAINMENT SERVICE INC PETER MULLEN SKADDEN'S LONGTIME EXECUTIVE PARTNER SAYS THE FIRM WASN'T EVEN BARRED BY CONFLICTS OF INTEREST WE JUST WEREN'T PART OF THOSE DEALS INDEED ABOUT TWO WEEKS BEFORE THE BELL ATLANTIC BID WAS ANNOUNCED ON WEDNESDAY THE FIRM WAS CONCERNED ENOUGH TO INSTRUCT ONE OF ITS PUBLICRELATIONS EMPLOYEES TO ALERT THE MEDIA WHEN SKADDEN WAS CALLED IN ON A BIG DEAL OTHER FIRMS GETTING SUBSTANTIAL M&A BUSINESS MEANWHILE INCLUDED SIMPSON THACHER & BARTLETT AND DAVIS POLK & WARDWELL AS WELL AS THE SMALLER WACHTELL LIPTON ROSEN & KATZ ALL OF NEW YORK THERE'S CERTAINLY MORE OF A COMPETITIVE ENVIRONMENT FOR LAWYERS IN THE M&A FIELD SAYS HARVEY PITT A PARTNER AT FRIED FRANK HARRIS SHRIVER & JACOBSON OTHER LAWYERS NOTE THAT THE FRIENDLY DEALS OF THE EARLY '90S HAVEN'T ALWAYS SEEMED TO REQUIRE THE FIREPOWER OF HIGHPRICED SPECIALISTS IF COMPANIES ARE GOING TO BYPASS THEIR USUAL OUTSIDE LAWYERS AND INHOUSE COUNSEL FOR SKADDEN AND ITS PEERS THERE HAS TO BE A COMPELLING REASON SKADDEN MAY NOT TOWER OVER THE M&A FIELD AS IT ONCE DID BUT IT'S A TESTAMENT TO THE FIRM'S FLEXIBILITY AND THE STRENGTH OF ITS YOUNGER GENERATION OF LAWYERS THAT IT TURNS OUT TO BE DOING QUITE WELL DESPITE ITS COMPETITORS' SNIPING SKADDEN SAYS THAT SO FAR THIS YEAR IT HAS HAD A ROLE IN AT LEAST SEVEN M&A DEALS VALUED AT MORE THAN 1 BILLION THE TWO YOUNG BELL ATLANTIC EXECUTIVES WHO HAD THE TASK OF CHOOSING THE COMPANY'S COUNSEL FOR THIS DECADE'S BIGGEST TAKEOVER ATTEMPT SO FAR HAD NEVER EVEN MET THE 69YEAROLD MR FLOM AND THEY WEREN'T LOOKING FOR A FAMOUS STREET FIGHTER BELL ATLANTIC NEEDED A LAW FIRM ADEPT NOT ONLY AT DEALMAKING BUT ALSO AT HANDLING COMPLEX COMMUNICATIONSLAW ISSUES TAX ANTITRUST AND REGULATORY QUESTIONS LEGAL COSTS WERE CERTAINLY AN ISSUE SAYS GENERAL COUNSEL JAMES YOUNG AND THE NOTORIOUSLY PRICEY SKADDEN WASN'T THE OBVIOUS CHOICE BUT MR YOUNG INVITED SKADDEN ALONG WITH THREE OTHER BIG FIRMS TO A BEAUTY CONTEST AT HIS ARLINGTON VA OFFICE IN EARLY AUGUST I HAVE TO BE SATISFIED WITH NOT JUST THE MAIN LAWYERS AT THE FIRM BUT THE PEOPLE WHO ARE GOING TO BE DOING THE WORK HE SAYS ABOVE ALL THE LAWYERS WOULD HAVE TO BE WILLING TO TAKE REAL HANDSON DIRECTION FROM HIM AND ASSISTANT GENERAL COUNSEL THOMAS MCKEOUGH AND FEE PREMIUMS WEREN'T GUARANTEED MR YOUNG DECLARED SKADDEN THE CLEAR WINNER A FEW DAYS AFTER THE THREEHOUR PRESENTATION BY TWO 41YEAROLD PARTNERS STEPHEN BANKER OF SKADDEN'S CORPORATE GROUP IN NEW YORK AND THOMAS CASEY A COMMUNICATIONS LAWYER IN WASHINGTON INSIDE THE FIRM THE VICTORY WAS A VINDICATION OF MESSRS FLOM AND MULLEN'S VISION OF A FIRM THAT COULD GROW AND DIVERSIFY INSTEAD OF JUST LETTING M&A LAWYERS GO DURING THE SLOW PERIODS SKADDEN CONTINUED TO WIDEN ITS PRACTICE AREAS AND SHIFTED DEALMAKING LAWYERS TO OTHER CORPORATE PROJECTS SUCH AS REORGANIZATIONS OFTEN WITHOUT OFFICIALLY RECLASSIFYING THE LAWYERS NOW IT IS SHIFTING MANY OF THEM BACK ABOUT 100 SKADDEN ATTORNEYS NOW ARE WORKING ON PENDING DEALS AMONG THE '90S SKILLS THEY'RE LEARNING DEMONSTRATING TO POTENTIAL CLIENTS THAT THEY CAN DO THE JOB AT LEAST AS WELL AND NOT NECESSARILY MORE EXPENSIVELY THAN ANYONE ELSE 9310260075 931026 MARKETSCAN WHAT'S IN THE BAG BY KATHLEEN DEVENY AMERICA'S GROCERY LIST IS ENOUGH TO GIVE NUTRITIONISTS NIGHTMARES SUPERMARKET SHOPPERS SPEND 89 MORE ON CARBONATED SOFT DRINKS THAN THEY DO ON MILK ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE CIGARETTES AND BEER ARE AMONG CONSUMERS' BIGGEST EXPENDITURES WHILE ICE CREAM COOKIES AND CANDY ALL RANK AMONG THE 20 BIGGEST SUPERMARKET CATEGORIES INFORMATION RESOURCES RANKED PRODUCT CATEGORIES IN US SUPERMARKETS BY TOTAL DOLLAR SALES DURING THE 52 WEEKS ENDED JULY 18 COMPARED WITH THE YEAR EARLIER TOGETHER THE TOP 10 CATEGORIES ACCOUNT FOR 318 OF TOTAL GROCERY SALES THE ROSTER CHANGES LITTLE FROM YEAR TO YEAR BUT ONE SHIFT IS NOTABLE SUPERMARKET SALES OF CIGARETTES DECLINED 89 BECAUSE OF BARGAIN PRICES AND FEWER SMOKERS DOLLAR SALES OF COLD CEREAL MEANWHILE GREW 53 BECAUSE OF HEAVY PROMOTION RISING PRICES AND THE PRODUCT'S HEALTHFUL IMAGE AS A RESULT CEREAL MOVED INTO THE NO 3 SPOT AHEAD OF CIGARETTES AMERICANS STILL BUY PLENTY OF MEAT AND VEGETABLES BUT THOSE ITEMS AREN'T TYPICALLY SCANNED AT SUPERMARKET CHECKOUTS AND ARE THEREFORE NOT INCLUDED IN THIS TALLY MEAT STILL GENERATES THE MOST REVENUE FOR GREAT ATLANTIC & PACIFIC TEA CO STORES ALTHOUGH SALES HAVE SLIPPED IN RCENT YEARS SALES OF ALL TYPES OF MEAT ACCOUNT FOR 15 TO 20 OF AVERAGE STORE RECEIPTS ACCORDING TO AN A&P SPOKESMAN RUNNING SECOND FRESH PRODUCE WHICH ACCOUNTS FOR ABOUT 7 OF SALES SPENDING LESS ON MEAT SUGGESTS A MORE HEALTHFUL DIET BUT VEGETABLE CONSUMPTION HAS ALSO BEEN SLIPPING ACCORDING TO HARRY BALZER VICE PRESIDENT OF NPD GROUP A CHICAGO FIRM THAT TRACKS EATING HABITS TODAY ONLY 293 OF MEALS PREPARED AT HOME INCLUDE VEGETABLES NOT COUNTING POTATOES THAT'S THE LOWEST LEVEL SINCE HIS FIRM BEGAN TRACKING CONSUMER BEHAVIOR IN 1981 BACK THEN 347 OF ALL MEALS INCLUDED VEGETABLES 9310260074 931026 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 1/2 HIGH 3 1/16 LOW 3 1/8 NEAR CLOSING BID 3 1/4 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 89 DAYS 320 90 TO 179 DAYS 321 180 TO 239 DAYS 327 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 315 60 DAYS 325 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 259 TWO MONTHS 267 THREE MONTHS 275 SIX MONTHS 292 ONE YEAR AVERAPAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 307 ONE MONTH 325 THREE MONTHS 327 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 308 60 DAYS 323 90 DAYS 323 120 DAYS 323 150 DAYS 323 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 3/8 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 643 JAPAN 3375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY OCTOBER 25 1993 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 679 60 DAYS 688 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 676 60 DAYS 686 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 9310260073 931026 VIACOM LAUNCHES OFFER FOR PARAMOUNT SCORES POTENTIAL TIME GAIN OVER QVC BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK GAINING A POTENTIALLY IMPORTANT TIME ADVANTAGE OVER QVC NETWORK INC IN THE BATTLE FOR PARAMOUNT COMMUNICATIONS INC VIACOM INC FORMALLY LAUNCHED ITS TENDER OFFER FOR PARAMOUNT YESTERDAY VALUED AT 99 BILLION OR 7954 A SHARE TAKEOVER STOCK TRADERS SAID THAT QVC SEEMED TO HAVE LEFT ITSELF AT A DISADVANTAGE IN THE FIVEWEEKOLD FIGHT FOR THE PUBLISHING AND ENTERTAINMENT GIANT BY ANNOUNCING ITS OWN TENDER OFFER FOR PARAMOUNT LAST THURSDAY WITHOUT BEGINNING THE OFFER IMMEDIATELY AT THE TIME QVC SAID ONLY THAT IT WOULD START ITS OFFER BY TOMORROW THE QVC ANNOUNCEMENT LAST WEEK INTENDED TO PUT PRESSURE ON THE PARAMOUNT BOARD TO NEGOTIATE WITH QVC AND START THE TIME CLOCK ON FEDERAL ANTITRUST CLEARANCE GAVE VIACOM ENOUGH TIME TO START ITS OWN OFFER YESTERDAY THAT GIVES VIACOM A CABLE AND ENTERTAINMENT CONCERN A HEAD START OF AT LEAST ONE OR TWO DAYS IN THE TIMETABLE UNDER WHICH IT COULD BUY PARAMOUNT STOCK AFTER THE LATEST TWIST IN THE TAKEOVER CONTEST PARAMOUNT STOCK SURGED 1375 A SHARE TO 79 YESTERDAY FOLLOWING THE NEWS THAT VIACOM ON SUNDAY HAD SWEETENED ITS EARLIER OFFER OF 75 BILLION OR 6296 A SHARE ESSENTIALLY MATCHING A TWOSTEP TENDER OFFER FROM QVC A HOMESHOPPING COMPANY VIACOM ALSO SIGNED A REVISED MERGER ACCORD WITH PARAMOUNT TRADERS SAID PARAMOUNT STOCK WAS TRADING AT A LEVEL INDICATING THAT ONE OR BOTH SIDES WOULD RAISE THEIR BIDS TO THE 85TO90ASHARE LEVEL QVC'S OFFER IS CURRENTLY VALUED AT 98 BILLION OR 7844 A SHARE BASED ON 1245 MILLION PARAMOUNT SHARES FULLY DILUTED QVC TOOK NO ACTION YESTERDAY AND DECLINED TO COMMENT ON VIACOM'S SWEETENED OFFER OR ITS NEXT MOVE BUT PEOPLE FAMILIAR WITH DEVELOPMENTS IN THE QVC CAMP SAY THAT BARRY DILLER QVC CHAIRMAN AND HIS ADVISERS ARE SCRUTINIZING THE REVISED AGREEMENT BETWEEN PARAMOUNT AND VIACOM MR DILLER ALSO IS SAID TO BE DEBATING WHETHER TO TAKE ON ADDITIONAL INVESTORS TO FINANCE AN ALLCASH BID HE ALREADY HAS 2 BILLION IN CASH FROM LIBERTY MEDIA INC COMCAST CORP ADVANCE PUBLICATIONS INC AND COX ENTERPRISES INC MARIO GABELLI A MONEY MANAGER AND PARAMOUNT SHAREHOLDER SAID THAT SUMNER REDSTONE VIACOM'S CHAIRMAN HAS CLEARLY HIT A GRANDSLAM HOMER IN THE TOP OF THE 7TH INNING AND HE'S WINNING THE GAME QVC IS UP AT BAT NOW BUT IT'S CLOSE TO THE END OF THE GAME AND QVC IS LOSING IN TERMS OF ECONOMICS AND TIMING IT'S NOT OVER YET MR GABELLI ADDED BUT QVC HAS TO COME BACK WITH ALL CASH AND A HIGHER BID TO WIN HE SAID THAT THE FIGHT IS FOURSQUARE IN THE HANDS OF THE ARBS MEANING THAT TAKEOVERSTOCK TRADERS CAN DETERMINE THE OUTCOME BY WHETHER THEY TENDER THEIR PARAMOUNT SHARES TO VIACOM OR TO QVC MR GABELLI SAID ONE OPTION IS FOR MR DILLER TO OFFER 85 TO 87 A SHARE IN CASH AT A NEWS CONFERENCE YESTERDAY MR REDSTONE DEFIANTLY INSISTED THAT PARAMOUNT WAS VIACOM'S PRIZE POINTEDLY DECLINING TO RULE OUT AN EVEN HIGHER OFFER TO REPEL QVC JOINED BY MARTIN DAVIS PARAMOUNT CHAIRMAN MR REDSTONE RIDICULED THE NOTION OF A WINNING BID FROM QVC AS UNTHINKABLE AND IMPOSSIBLE SAID MR REDSTONE ALL I CAN SAY IS THAT PARAMOUNT AND WE AND OUR BOARDS ARE UNANIMOUSLY COMMITTED TO THIS MERGER MR REDSTONE ALSO SAID VIACOM IS IN TALKS WITH OTHER POTENTIAL INVESTORS IN THE DEAL WHO MIGHT ADD TO 18 BILLION IN CASH THAT VIACOM HAS RAISED IN INVESTMENTS FROM BLOCKBUSTER ENTERTAINMENT INC AND NYNEX CORP UNDER THE WILLLIAMS ACT GOVERNING TENDER OFFERS AN OFFER MUST REMAIN OPEN FOR 20 BUSINESS DAYS TO ALLOW TIME FOR SHAREHOLDERS TO CONSIDER THE TERMS AND DECIDE WHETHER TO SELL THEIR SHARES BY TENDERING THEM TO THE BIDDER IF VIACOM STARTS ITS OFFER A DAY OR TWO BEFORE QVC AND RECEIVES ALL NECESSARY GOVERNMENT CLEARANCES IT CAN COMPLETE ITS OFFER BEFORE QVC AND ACTUALLY BUY PARAMOUNT SHARES NORMALLY THAT SORT OF ADVANTAGE WOULDN'T BE AS IMPORTANT IN A TAKEOVER BATTLE AS OTHER FACTORS SUCH AS PRICE BUT THE STRUCTURE OF THE CURRENT VIACOM AND QVC OFFERS ENCOURAGES TRADERS TO TENDER THEIR SHARES TO THE FIRST OFFER THAT EXPIRESABSENT A BIG DIFFERENCE IN PRICE BECAUSE THEY DON'T WANT TO TAKE THE CHANCE OF MISSING OUT ON THE CASH PORTION OF THE OFFER EACH OFFER GIVES PARAMOUNT HOLDERS 80 IN CASH FOR 51 OF PARAMOUNT'S SHARES OUTSTANDING AND 80 IN SECURITIES FOR THE REMAINDER AS ONE TAKEOVERSTOCK TRADER PUT IT THE RISK OF MISSING THE CASH PORTION OF THE VIACOM DEAL SORT OF STAMPEDES YOU INTO TENDERING YOUR SHARES UNLESS QVC MAKES A BIG INCREASE IN ITS OFFER OR VIACOM CAN'T GET FINANCING OR GOVERNMENT CLEARANCES IN TIME BECAUSE VIACOM ALREADY HAS RECEIVED ANTITRUST CLEARANCE THE CHIEF GOVERNMENT CLEARANCE NEEDED AT THIS POINT IS FROM THE FEDERAL COMMUNICATIONS COMMISSION WHICH MUST AUTHORIZE PUTTING PARAMOUNT'S TELEVISION STATIONS INTO A SPECIAL TRUST PENDING A FORMAL CLEARANCE LATER OF THE OWNERSHIP TRANSFER SOME TRADERS AND INVESTMENT BANKERS NOT INVOLVED IN THE DEAL SAID THAT CLEARANCE MAY BE ABLE TO BE OBTAINED WITHIN THE 20BUSINESSDAY TIMETABLE SOME TRADERS SAID THEY MIGHT TENDER THEIR SHARES INTO AN 80ASHARE VIACOM OFFER EVEN IF QVC OFFERED AS MUCH AS 85 A SHARE IF IT APPEARED AS THOUGH VIACOM WOULD GET THE 51 OF PARAMOUNT SHARES NEEDED TO GAIN CONTROL AND COMPLETE THE OFFER HOWEVER IF QVC MADE A HIGHER BID THAT FORCED VIACOM TO RAISE ITS OFFER IN THE LAST 10 DAYS OF THE 20DAY TIME PERIOD TRADERS SAID THAT COULD RESET THE CLOCK AND ELIMINATE VIACOM'S ADVANTAGE IN ITS REVISED MERGER AGREEMENT WITH VIACOM THE PARAMOUNT BOARD SAID THAT IT WOULD DROP ITS POISONPILL ANTITAKEOVER MEASURE WHICH MAKES A HOSTILE TAKEOVER PROHIBITIVELY EXPENSIVE FOR THE ACQUIRER TO ALLOW VIACOM TO PURCHASE SHARES UNLESS PARAMOUNT RECEIVED A HIGHER OFFER BUT IT WASN'T CLEAR WHETHER THE BOARD WOULD KEEP THE PILL IN PLACE IF QVC MADE AN OFFER ONLY SLIGHTLY HIGHER QVC IS ALSO AT SOMETHING OF A DISADVANTAGE BECAUSE OF A LOCKUP PROVISION IN THE VIACOMPARAMOUNT MERGER UNDER THE LOCKUP PARAMOUNT HAS GRANTED VIACOM AN OPTION TO ACQUIRE 24 MILLION NEWLY ISSUED PARAMOUNT SHARES WHICH WOULD SWELL PARAMOUNT'S SHARES OUTSTANDING BY ABOUT 20 AND ADD HUNDREDS OF MILLIONS OF DOLLARS TO A RIVAL BIDDER'S COSTS PARAMOUNT ALSO MUST PAY VIACOM 100 MILLION IF ANOTHER BIDDER PREVAILS QVC HAS SUED TO INVALIDATE THE LOCKUP AND HAS CONDITIONED ITS OFFER FOR PARAMOUNT ON ITS REMOVAL THE NEW VIACOMPARAMOUNT AGREEMENT HAS DROPPED A THIRD PROVISION THAT QVC HAS SEEN AS AN OBSTACLE PARAMOUNT NO LONGER HAS TO SEEK A SHAREHOLDER VOTE TO ABORT A DEAL WITH VIACOM IF A HIGHER OFFER IS MADE FOR PARAMOUNT QVC STRATEGISTS BELIEVE THAT THE RELATIVELY SMALL TIMING DIFFERENCE IN THE VIACOM AND QVC TENDER OFFERS WOULDN'T BE IMPORTANT TO THE OUTCOME ACCORDING TO PEOPLE FAMILIAR WITH THEIR THINKING AND QVC WAS AT A DISADVANTAGE IN STARTING ITS OFFER QUICKLY BECAUSE UNLIKE VIACOM IT DIDN'T HAVE ACCESS TO THE PARAMOUNT CORPORATE MACHINERY THE PEOPLE SAID SOME TRADERS ALSO NOTED THAT QVC'S INVESTMENT BANKER ALLEN & CO IS AN ENTERTAINMENTINDUSTRY SPECIALIST WITH LITTLE EXPERIENCE IN CONTESTED TAKEOVER BATTLES AND WACHTELL LIPTON ROSEN & KATZ THE LAW FIRM WHOSE PARTNER MARTIN LIPTON IS QUARTERBACKING THE QVC STRATEGY SPECIALIZED IN TAKEOVER DEFENSE RATHER THAN OFFENSE DURING THE 1980S BOTH FIRMS DECLINED TO COMMENT 9310260072 931026 POLITICS & POLICY CLINTON'S CRUSADE FOR NAFTA INCLUDES ARMTWISTING CITING THREATS TO US BY MICHAEL K FRISBY AND BOB DAVIS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON TAKING A NEWLY AGGRESSIVE STANCE THE WHITE HOUSE IS TWISTING THE ARMS OF RELUCTANT LAWMAKERS AND CLAIMING DIRE THREATS TO THE US ECONOMY IF THE NORTH AMERICAN FREE TRADE AGREEMENT ISN'T APPROVED PRONAFTA FORCES ARE STUDYING THE CAMPAIGNCONTRIBUTION LISTS OF LEADING DEMOCRATS AND ASKING DONORS WHO FAVOR THE ACCORD TO PRESSURE LAWMAKERS SOME DONORS ARE EVEN THREATENING TO WITHHOLD FUTURE CONTRIBUTIONS UNLESS THE LAWMAKERS ENDORSE THE ACCORD WHICH WOULD CREATE A FREETRADE ZONE BETWEEN CANADA MEXICO AND THE US THE CLINTON WHITE HOUSE HAS TARGETED A NEW VILLAIN TO RALLY THE TROOPS JAPAN EVEN IF THE ADMINISTRATION USES ARGUMENTS THAT ARE CONTRADICTORY THE ADMINISTRATION HAS ADVERTISED NAFTA TO THE WORLD AS A FREETRADE ACCORD YET IT INSTRUCTED SIX CABINET SECRETARIES TO HIGHLIGHT IN SPEECHES YESTERDAY AROUND THE COUNTRY THAT A JAPANESE OFFICIAL ACCUSED NAFTA OF SNEAKY PROTECTIONISM THUS SHOWING THAT NAFTA WOULD BOOST US INDUSTRIES THE STRATEGY IS WHAT JAPAN DOESN'T LIKE WILL SELL IN THE US WITH THE CRUCIAL NAFTA VOTE SLATED FOR NOV 17 THE WHITE HOUSE WITH ASSISTANCE FROM THE CORPORATESPONSORED USANAFTA GROUP HAS DEPLOYED SURPRISINGLY TOUGH TACTICS WITH FELLOW DEMOCRATS REP ALAN WHEAT OF MISSOURI IS FEELING THE HEAT THE WHITE HOUSE IDENTIFIED A NUMBER OF PRONAFTA CORPORATIONS IN MR WHEAT'S KANSAS CITYAREA DISTRICT INCLUDING JC PENNEY CO AMERICAN TELEPHONE & TELEGRAPH CO HALLMARK CARDS INC AND ALLIEDSIGNAL INC AND IS ASKING THE BUSINESS OFFICIALS TO PRESSURE THE LAWMAKER IN ADDITION THE WHITE HOUSE HAD LISTED REP EARL HILLIARD OF ALABAMA AS A NO VOTE BUT THE WHITE HOUSE TALKED WITH VAN RICHEY OWNER OF A HOMESTATE STEEL COMPANY WHO ALSO HAPPENS TO BE THE CONGRESSMAN'S CHIEF FUNDRAISER AND NOW WHITE HOUSE AIDES DESCRIBE MR HILLIARD AS BEING MORE OPEN TO NAFTA THE LAWMAKER COULDN'T BE REACHED FOR COMMENT LAST NIGHT ANOTHER TARGET OF THE INTENSE POLITICAL GAMING IS REP LUIS GUTTIERREZ A CHICAGO DEMOCRAT MR GUTTIERREZ ACCORDING TO ANTINAFTA FORCES PLANNED TO ANNOUNCE HIS OPPOSITION AT A HOMETOWN FORUM EARLIER THIS MONTH BUT AFTER BEING CALLED BY FOUR CABINET SECRETARIES AND OTHER CLINTON OFFICIALS HE ONLY SAID PUBLICLY AT THE FORUM THAT HE IS LEANING AGAINST THE ACCORD SHORTLY AFTER THE FORUM HOWEVER ILLINOIS STATE REP RAY FRIAS STARTED MAKING NOISES ABOUT RUNNING AGAINST MR GUTTIERREZ THE CONGRESSMAN'S FRIENDS CONTEND HE IS BEING THREATENED POLITICALLY BECAUSE OF HIS OPPOSITION TO NAFTA MR FRIAS IS BEING PUSHED BY A CITY OFFICIAL WHO WORKS FOR MAYOR RICHARD DALEY AND THE MAYOR'S BROTHER BILL DALEY IS IN CHARGE OF COURTING NAFTA VOTES FOR THE WHITE HOUSE ADMINISTRATION OFFICIALS SAY THEY HAVEN'T ENLISTED AN OPPONENT FOR MR GUTTIERREZ AND INSTEAD ATTRIBUTE THE CONGRESSMAN'S PROBLEMS TO HIS LUKEWARM RELATIONSHIP WITH THE MEXICANAMERICAN COMMUNITY IN HIS DISTRICT AND THE ADMINISTRATION INSISTS THAT MR GUTTIERREZ AND THE MAYOR ARE ALLIES STILL SOME OF THE LAWMAKER'S FRIENDS ARE CONCERNED THE CONGRESSMAN CERTAINLY HOPES AND BELIEVES THAT VOTING HIS BELIEFS ON NAFTA VOTING ON NAFTA FOR WHAT HE THINKS IS BEST FOR THE DISTRICT WILL NOT HAVE AN IMPACT ON HIS FUTURE RELATIONSHIP WITH THE ADMINISTRATION SAYS DOUG SCOFIELD WHO IS CHIEF OF STAFF FOR MR GUTTIERREZ THE WHITE HOUSE'S NAFTA OPERATION CAME TO LIFE LAST MONTH WITH THE ACCESSION OF RAHM EMANUEL AS ITS OPERATIONAL LEADER MR EMANUEL HAS A REPUTATION FOR BRASHNESS BUT ALSO FOR GETTING THINGS DONE EVEN THOUGH IT MAY BE A BLOODY PROCESS LAST WEEK PRESIDENT CLINTON RAISED THE SPECTER THAT JAPAN MAY NEGOTIATE ITS OWN TRADE DEAL WITH MEXICO IF CONGRESS DEFEATS NAFTA THEN WE HAVE TO DEAL WITH THE PRODUCTS COMING THROUGH THE BACK DOOR FROM MEXICO HE WARNED LABOR SECRETARY ROBERT REICH ECHOED THAT CAUTION YESTERDAY IN A SPEECH HERE TO THE NATIONAL ALLIANCE OF BUSINESS BUT SEIICHIRO NOBORU THE JAPANESE EMBASSY'S ECONOMICS MINISTER CALLED THE ALLEGATION ABSOLUTELY RIDICULOUS HE ADDED THAT THERE IS NO SUCH PLAN TO FORM A FREETRADE ZONE WITH ANY COUNTRY LET ALONE MEXICO TRADE ECONOMISTS ARGUE THAT A JAPANESESTYLE NAFTA DOESN'T MAKE SENSE ANYWAY JAPAN'S NATURAL TRADING PARTNERS ARE IN EAST ASIA NOT LATIN AMERICA AND MEXICO'S ECONOMIC PROSPECTS WOULD ONLY DIMINISH AFTER A NAFTA DEFEAT THEREBY REDUCING ITS ATTRACTIVENESS TO JAPANESE BUSINESS MOREOVER JAPAN WOULD WORRY ABOUT ANTAGONIZING THE US ITS BIGGEST TRADING PARTNER THAT WOULD BE LIKE THE RUSSIANS MOVING MISSILES TO CUBA SAYS JAGDISH BHAGWATI A TRADE ECONOMIST AT COLUMBIA UNIVERSITY IT WOULD DRIVE PEOPLE HERE CRAZY AT THE SAME TIME PRESIDENT CLINTON'S TRADE REPRESENTATIVE MICKEY KANTOR IS USING JAPAN IN A DIFFERENT FASHION HE REGULARLY ARGUES THAT NAFTA WOULD KEEP A LEASH ON JAPAN IN NORTH AMERICA BECAUSE JAPANESE COMPANIES WOULD HAVE TO MEET TOUGH LOCALCONTENT RULES TO GET NAFTA TARIFF BREAKS AND HE AND OTHER CABINET OFFICIALS WERE QUICK TO JUMP ON THE REMARKS OF YASUO TANABE A FORMER SENIOR JAPANESE TRADE OFFICIAL WHO CALLED LOCALCONTENT RULES IN NAFTA SNEAKY PROTECTIONISM THIS CONFIRMS WHAT THE ADMINISTRATION IS SAYING MR KANTOR DECLARED TO REPORTERS MR KANTOR HAS ALSO PICKED ANOTHER HIGHPROFILE TARGET THE SOCALLED MAQUILADORA PROGRAM WHICH CREATED ZONES IN NORTHERN MEXICO TO PRODUCE GOODS LARGELY TARIFFFREE FOR SHIPMENT TO THE US NAFTA FOES REGULARLY LAMBAST MAQUILADORAS FOR STEALING US JOBS AND PRODUCING POLLUTION MR KANTOR HAS PORTRAYED THE PROGRAM AS A KIND OF US AID TO MEXICO THROUGH TRADE MEASURES THAT WENT BADLY AWRY BUT TRADE HISTORIANS NOTE THAT THE MAQUILADORA PROGRAM WAS ACTUALLY BEGUN BY THE MEXICAN GOVERNMENT IN 1965 AFTER THE US ENDED THE DECADESOLD BRACERO PROGRAM UNDER WHICH MEXICAN LABORERS ENTERED THE US TO WORK SEASONALLY IN AGRICULTURE WITH GROWING COMPETITION FROM ASIA SAYS JULIUS KATZ A VETERAN TRADE OFFICIAL WHO NEGOTIATED NAFTA UNDER PRESIDENT BUSH THE MAQUILADORAS GAVE US COMPANIES A WAY TO DO LABORINTENSIVE WORK AT CHEAP RATES CLOSE TO THE US RATHER THAN MOVING EVEN MORE FACTORIES TO ASIA WITHOUT THE MAQUILADORAS MR KATZ SAID EVERYTHING ELSE WOULD HAVE GONE ABROAD TOO INDEED A REPORT ON THE MAQUILADORA PROGRAM BY CONGRESS'S WATCHDOG GENERAL ACCOUNTING OFFICE SHOWS THAT IF THE PROGRAM WERE CANCELED OUTRIGHT THE US PROBABLY WOULDN'T GAIN JOBS THAT'S LARGELY BECAUSE IMPORTS FROM COUNTRIES OTHER THAN MEXICO WOULD INCREASE TO TAKE UP THE SLACK IN DIMINISHED MAQUILADORA PRODUCTION 9310260071 931026 UPHILL ROAD THE PROBLEMS AT GM ARE PLAGUING SMITH AS THEY DID STEMPEL COSTLY LABOR PACT RECALLS FACTORY WOES HURT BID TO GET COMPANY MOVING NEW CHARGE AGAINST EARNINGS BY JOSEPH B WHITE AND NEAL TEMPLIN STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP SEEMS CAUGHT IN A FLASHBACK EXPENSIVE LABOR CONTRACTS EMBARRASSING RECALLS SLIDING MARKET SHARE COSTLY FOULUPS IN THE FACTORIES NEGATIVE PRESS DEMORALIZED MANAGERS BIG RESTRUCTURING CHARGES THESE WERE THE HALLMARKS OF THE OLD GM THAT PRESIDENT JOHN F SMITH JR AND HIS CADRE OF BABY BOOMERS WERE DETERMINED TO BURY BUT A YEAR AFTER THE AUTO MAKER'S INDEPENDENT DIRECTORS SWEPT OUT GM'S SLOWMOVING MANAGEMENT HOPES FOR A FAST AND ROBUST GM TURNAROUND ARE WILTING INVESTORS DISAPPOINTED THAT MR SMITH FAILED TO DELIVER ON PROMISES TO SHAKE GM FREE FROM A BIG THREE LABOR PATTERN DUMPED GM'S SHARES YESTERDAY THE STOCK FELL 125 TO 4475 IN HEAVY NEW YORK STOCK EXCHANGE TRADING ANALYST STEPHEN GIRSKY OF PAINEWEBBER INC HELPED IGNITE THE SELLOFF BY WITHDRAWING HIS BUY RECOMMENDATION FOR GM'S SHARES AFTER THE MARKET CLOSED GM DROPPED SOME MORE BAD NEWS THE COMPANY SAID IT WILL TAKE A 950 MILLION PRETAX CHARGE AGAINST THIRDQUARTER EARNINGS TO REFLECT HIGHERTHANANTICIPATED COSTS FOR PLANT CLOSINGS AND LAYOFFS BECAUSE OF EFFICIENCY GAINS THE AUTO MAKER SAID THERE WON'T BE ENOUGH JOBS AT GM TO EMPLOY ALL THE HOURLY WORKERS WHOSE POSITIONS WILL DISAPPEAR AS THE COMPANY SHRINKS ANALYSTS EXPECT GM WILL HAVE TO TAKE A SEPARATE CHARGE AGAINST SHAREHOLDER EQUITY TO REFLECT ITS STAGGERING UNFUNDED PENSION LIABILITY THE RESULT OF THE CHARGES COULD BE THAT GM'S NET WORTH ROUGHLY 67 BILLION AS OF JUNE 30 MOVES CLOSER TO ZERO BEFORE GM'S ANNOUNCEMENT STANDARD & POOR'S THE CREDITRATING AGENCY CHANGED ITS OUTLOOK FOR GM TO NEGATIVE FROM STABLE CITING THE TENTATIVE THREEYEAR CONTRACT REACHED SUNDAY WITH THE UNITED AUTO WORKERS AS WELL AS GM'S PENSION LIABILITY OF AS MUCH AS 25 BILLION S&P DIDN'T CUT GM'S ALREADY DEPRESSED TRIPLEBPLUS SENIORDEBT RATING BUT WARNED THAT THIS COULD HAPPEN WITHIN THE NEXT TWO YEARS UNLESS FINANCIAL PERFORMANCE AT GM'S NORTH AMERICAN OPERATIONS CONTINUES TO IMPROVE SIGNIFICANTLY AND THE UNFUNDED PENSION LIABILITY IS MATERIALLY REDUCED ON TOP OF THIS GM ANNOUNCED YESTERDAY THAT IT WAS RECALLING 8700 NEW 1994 CADILLACS TO FIX DEFECTS IN THE HIGHTECH NORTHSTAR V8 ENGINES THAT COULD CAUSE ACCELERATORS TO STICK OPEN AT HIGH SPEEDS THIS COMES AFTER A SUMMER NEWMODEL LAUNCH SO PLAGUED BY PRODUCTION AND PARTS SNAFUS THAT THE COMPANY LOST MORE THAN 70000 VEHICLES FROM ITS PRODUCTION SCHEDULES MR SMITH'S TEAM IS DISCOVERING AS ARE SHAREHOLDERS THAT FORMER GM CHAIRMAN ROBERT C STEMPEL MIGHT HAVE HAD A POINT WHEN HE ARGUED THAT IT WOULD TAKE TIME TO RETURN THE COMPANY TO ITS FORMER STRENGTH IN FACT SOME OF MR SMITH'S SENIOR LIEUTENANTS HAVE BEGUN CALLING FOR PATIENCE WE DIDN'T GET WHERE WE ARE IN A YEAR WE WON'T GET OUT IN A YEAR SAYS G RICHARD WAGONER CHIEF FINANCIAL OFFICER NOW JACK SMITH THE MAN BROUGHT IN BECAUSE HIS PREDECESSOR WASN'T FAST ENOUGH OR TOUGH ENOUGH IS TAKING FLAK FROM SOME ON WALL STREET FOR NOT BEING FAST ENOUGH OR TOUGH ENOUGH EITHER THE QUESTION IS WHETHER ANYONE COULD BE WHEN CONFRONTING GM'S SYSTEMIC ILLS CLEARLY THE 55YEAROLD MR SMITH AND HIS ADMINISTRATION ARE WORKING ON A FASTER TIMETABLE THAN MR STEMPEL DID UNDER MR SMITH GM HAS RETURNED TO OVERALL PROFITABILITY THIS YEAR EARNING 122 BILLION THROUGH JUNE 30 AFTER A YEAREARLIER 870 MILLION LOSS BEFORE A 201 BILLION CHARGE FOR RETIREE MEDICAL BENEFITS GM'S AUTOMOTIVE OPERATIONS HAD 906 BILLION IN CASH AND MARKETABLE SECURITIES ON HAND AS OF JUNE 30 UP FROM 796 BILLION A YEAR EARLIER AND CASH FLOW FROM OPERATIONS IS MORE THAN COVERING CAPITAL SPENDING IT WASN'T IN THE JANUARYTOJUNE PERIOD IN 1992 IN A CONFERENCE CALL LAST NIGHT MR WAGONER TOLD ANALYSTS THAT DESPITE THE LATEST CHARGE GM'S NORTH AMERICAN OPERATIONS WOULD MAKE GOOD ON MR SMITH'S PLEDGE TO BREAK EVEN THIS YEAR BEFORE INTEREST TAXES AND RETIREE MEDICAL CHARGES REVERSING A 36 BILLION 1992 LOSS WITHOUT DELVING INTO SPECIFICS MR WAGONER STRUCK AN UPBEAT TONE AND ASSURED THE ANALYSTS THAT GM STILL COULD RESTORE THE OPERATIONS TO GOOD HEALTH BY THE END OF THE NEW CONTRACT IN 1996 BUT GM'S US VEHICLE OPERATIONS ARE EXPECTED TO HAVE A NET LOSS AFTER ALL EXPENSES OF ABOUT 2 BILLION THIS YEAR AND MR SMITH'S DECISION OVER THE WEEKEND TO BACK AWAY UNDER UAW PRESSURE FROM HIS PROMISES OF FUNDAMENTAL CHANGE IN GM'S LABOR RELATIONS ADDS TO OTHER COMPROMISES HE AND HIS ADMINISTRATION HAVE HAD TO MAKE SINCE TAKING POWER LAST NOV 2 THERE'S BEEN GOOD PROGRESS IN TURNING AROUND NORTH AMERICAN OPERATIONS SAYS SCOTT SPRINZEN AN S&P ANALYST BUT THIS RAISES QUESTIONS ABOUT HOW FAR IT WILL GO FOR AN AUTO COMPANY TO BE USING EARNINGS BEFORE INTEREST AND TAXES AS A TARGET TWO YEARS INTO AN UPTURN ISN'T IMPRESSIVE YOU CAN SEE FROM THE EARNINGS OF CHRYSLER AND FORD WHAT'S POSSIBLE WITH A BETTER COMPETITIVE POSITION MR SMITH'S BIG PROBLEM IS THAT WHILE HE IS THE CHIEF EXECUTIVE HE HAS REMARKABLY LITTLE ROOM TO MANEUVER IN HIS PUSH FOR RADICAL CHANGE FINANCIALLY GM IS HEMMED IN BECAUSE ITS BALANCE SHEET ONCE THE INDUSTRIAL EQUIVALENT OF FORT KNOX HAS BEEN DEVASTATED BY 17 BILLION IN NORTH AMERICAN LOSSES OVER THE PAST THREE YEARS AND IN THE ARENAS OF LABOR RELATIONS AND PRODUCT DEVELOPMENT MR SMITH IS BUMPING INTO ENTRENCHED CONSTITUENCIES WHO DON'T SHARE HIS VISION OF THE NEW GM TOPPING THIS LIST THE UAW THOUGH MR SMITH HAS IMPROVED THE AUTO MAKER'S WORKING RELATIONSHIP WITH THE UNION HIS YEARLONG CAMPAIGN TO GET SPECIAL CONCESSIONS IN THE NEW CONTRACT LARGELY FAILED GIVING THE AUTO MAKER LITTLE RELIEF FROM HIGH PENSION AND MEDICAL COSTS CONSIDER THE SITUATION IN GM'S PARTSMAKING OPERATIONS WHERE 85000 HOURLY WORKERS WILL KEEP WAGES AND BENEFITS THAT COST GM MORE THAN DOUBLE WHAT INDEPENDENT PARTS SUPPLIERS PAY FOR SIMILAR WORK GM BARGAINERS AT MR SMITH'S DIRECTION PUSHED FOR CONCESSIONS THAT WOULD HAVE SIGNIFICANTLY REDUCED LABOR COSTS IN PARTS OPERATIONS BY WARNING THAT THE COMPANY WOULD ACCELERATE SALES OF PARTS FACTORIES BUT UAW PRESIDENT OWEN BIEBER INSTEAD DEMANDED THAT GM GUARANTEE THAT A PARTS WORKER RECEIVE GMSTYLE WAGES AND BENEFITS THROUGH AT LEAST 1996 EVEN IF HIS PLANT WAS SOLD TO ANOTHER OWNER GM CAVED IN EVEN MORE GRATING TO GM EXECUTIVES IS THAT THE NEW AGREEMENT WILL ALLOW SOME 1200 LAIDOFF WORKERS FROM GM'S SHUTTERED ASSEMBLY PLANT IN VAN NUYS CALIF TO COLLECT CLOSE TO FULL PAY FOR THREE MORE YEARS WITHOUT FACING ANY REQUIREMENT THAT THEY MOVE TO A PLANT WITH JOB OPENINGS ACCORDING TO A UNION NEGOTIATOR YOU CAN DO NOTHING AND STILL GET YOUR MONEY HE SAYS ABOUT HALF OF THE VAN NUYS WORKERS ARE ELIGIBLE FOR RETIREMENT BUT MANY OF THEM ARE LIKELY TO STICK AROUND IF THEY STILL RECEIVE PAYMENTS SAYS RAY KNUDSON A TRUSTEE IN THE UAW LOCAL THERE GM IS JUSTIFYING ITS ACCEPTANCE OF THE LARGELY STATUSQUO CONTRACT BY ARGUING THAT THE ALTERNATIVE COULD HAVE BEEN A CRIPPLING STRIKE OFFICIALS ALSO POINT WITH HOPE TO THE WARMER RELATIONSHIP BETWEEN MR SMITH AND THE UAW'S TOP GM NEGOTIATOR STEPHEN P YOKICH BUT IT APPEARS THAT PRESERVING THAT RELATIONSHIP WILL MEAN THAT GM WILL HAVE TO MOVE SLOWLY TO CUT ITS PAYROLL MEANWHILE THE COMPANY'S UNCOMPETITIVE LABOR COSTS AREN'T HELPING ITS STRUGGLE TO SHOW A SUSTAINED RECOVERY ON THE SHOWROOM FLOOR WHILE GM'S RECENT EFFORTS TO PROMOTE VALUE PRICING READ LOWER STICKER PRICES HAVE RESULTED IN SOME SALES IMPROVEMENT ITS SHARE OF THE US VEHICLE MARKET SLID TO 302 IN SEPTEMBER FROM 333 A YEAR AGO THAT DECLINE CAME DESPITE A SURGE IN THE VALUE OF THE YEN THAT TOOK MANY ONCECOMPETITIVE JAPANESE MODELS OFF AMERICAN CONSUMERS' SHOPPING LISTS GM'S PRODUCT WEAKNESS IS PERHAPS BEST SUMMED UP BY A RECENT FORD MOTOR CO ADVERTISEMENT HIGHLIGHTING FORD'S NO 1 SALES STATUS IN SOME OF THE BIGGEST AND MOST PROFITABLE MARKETS INCLUDING SPORTUTILITY VEHICLES MIDSIZE CARS AND LARGE PICKUPS GM IS A WEAK NO 3 IN THE LUCRATIVE AND GROWING MINIVAN MARKET BEHIND CHRYSLER CORP AND FORD GM HAS A FEW SALES STARS BUT SOME OF THEM SAY AS MUCH ABOUT WHAT IS WRONG WITH GM AS WHAT'S RIGHT GM SAID YESTERDAY THAT SALES IN MIDOCTOBER ROSE 157 FROM A YEAR AGO LARGELY BECAUSE OF A SURGE IN SALES OF TWO 12YEAROLD COMPACT CARS THE CHEVROLET CAVALIER AND PONTIAC SUNBIRD MEANWHILE GM WON'T HAVE A MUCHNEEDED NEW MINIVAN OR A NEW MAINSTREAM MIDSIZE MODEL FOR ITS STRUGGLING OLDSMOBILE DIVISION UNTIL 1996 ONE REASON IT IS TAKING SO LONG TO PLUG THE GAPS IN GM'S VEHICLE LINEUP IS THAT THE COMPANY IS REINVENTING ITS PRODUCTDESIGN PROCESS ON THE FLY GM CHAIRMAN JOHN G SMALE KNOWN FOR THE STRENGTH OF HIS MARKETING ACUMEN AND MR SMITH ARE DRIVING THE COMPANY'S DESIGNERS AND ENGINEERS TO FACTOR CUSTOMER DESIRES INTO GM'S NEW MODELS AS NEVER BEFORE GM IS DIVIDING THE VEHICLE MARKET INTO NEEDS SEGMENTS BASED NOT ON WHETHER A VEHICLE IS A COMPACT CAR OR A PICKUP BUT ON WHAT PEOPLE ARE LIKELY TO USE THE VEHICLE TO DO GM STAFFERS HAVE BUILT A THREEDIMENSIONAL MODEL THAT SHOWS HOW VARIOUS SEGMENTS RELATE TO ONE ANOTHER THE MODEL LOOKS LIKE THE SKYLINE OF A CITY AND IT SHOWS THAT IN THE PAST GM TARGETED MANY OF ITS MODELS AT THE SAME MOSTLY AGING DEMOGRAPHIC GROUPS LEAVING OTHER GROUPS WITHOUT MUCH TO BUY BUT FROM NOW ON SAYS VINCENT BARABBA THE EXECUTIVE IN CHARGE OF GM'S BUSINESSDECISION CENTER MANAGERS OF NEWCAR PROGRAMS MUST SHOW MR SMITH AND HIS NORTH AMERICAN STRATEGY BOARD THAT THEIR VEHICLE FITS PROPERLY INTO THE NEEDSSEGMENT MAP AND THAT IT RECEIVED GOOD REVIEWS IN CONSUMER TESTS OTHERWISE THE VEHICLE DOESN'T GET APPROVED THE TROUBLE IS IT WILL BE THREE TO FOUR YEARS BEFORE NEW VEHICLES DESIGNED UNDER THIS CUSTOMERCONSCIOUS SYSTEM HIT THE MARKET THAT MEANS GM RISKS FIELDING IN THE MID1990S THE CARS THAT CHRYSLER AND FORD HAVE TODAY THAT RISK COULD BE EXACERBATED BY GM'S ROCKY RELATIONS WITH SUPPLIERS WHO FREQUENTLY GENERATE NEWPRODUCT IDEAS PUT SIMPLY SUPPLIERS DON'T TRUST GM AND DON'T APPRECIATE BEING MADE TO CONTRIBUTE TO ITS RECOVERY BY SLASHING THEIR PROFIT MARGINS ON GM PRODUCG GM'S 50 BILLION ANNUAL PURCHASING BILL IS AN ESSENTIAL ELEMENT OF MR SMITH'S TURNAROUND STRATEGY LAUNCHED WITH FANFARE LAST YEAR BY FORMER PURCHASING CZAR J IGNACIO LOPEZ DE ARRIORTUA MR LOPEZ CANCELED AND REBID NEARLY ALL OF GM'S CONTRACTS FOR PARTS AND MATERIALS FOR THE JUSTSTARTED 1994 MODEL YEAR DEMANDING DOUBLEDIGIT PERCENTAGE PRICE CUTS IN THE PROCESS AFTER MR LOPEZ LEFT MR SMITH IN THE LURCH BY JUMPING TO VOLKSWAGEN AG LAST MARCH MR SMITH NAMED MR WAGONER TO STEP IN TO CARRY FORWARD MR LOPEZ'S WORLDWIDE PURCHASING PROGRAM MR WAGONER SAYS GM HAS ALREADY BOOKED 2 BILLION IN SAVINGS FROM WORLDWIDE PURCHASING THIS YEAR BUT NOW SOME ANALYSTS AND SUPPLIERS SAY GM HARVESTED TROUBLE AS PROBLEMS WITH NEW PARTS AND NEW SUPPLIERS CONTRIBUTED TO GM'S ROCKY 1994 NEW MODEL LAUNCH MR WAGONER SAYS WORLDWIDE PURCHASING HAD NOTHING TO DO WITH THE PRODUCTION PROBLEMS HE SAYS GM HAD PROBLEMS WITH FEWER THAN FIVE SUPPLIERS THAT CONTRIBUTED TO THE 75000 VEHICLE THIRDQUARTER OUTPUT SHORTFALL IN THE US AND NOW MR WAGONER AND SENIOR GM PURCHASING EXECUTIVES ARE EMBARKING ON A TOUR OF 200 MAJOR SUPPLIERS IN AN ATTEMPT TO SMOOTH FEATHERS RUFFLED BY GM'S HARDBALL TACTICS BUT SUPPLIERS SAY THEY ARE SHIFTING TECHNICAL RESOURCES CAPACITY AND INVESTMENT AWAY FROM GM PROJECTS THAT THEY CAN DO SO BY GRABBING CONTRACTS FROM THE US OPERATIONS OF NISSAN MOTOR CORP OR TOYOTA MOTOR CORP OR A RESURGENT CHRYSLER SHOWS HOW GM'S POWER TO CONTROL THE INDUSTRY HAS EBBED ONE DIVISION WE HAVE WAS 95 GM SAYS ONE SUPPLIER NOW IT'S 50 GM THEY WON'T GET THAT BACK 9310260069 931026 MUTUAL FUND SCORECARD / INTERNATIONAL INVESTMENT OBJECTIVE INVESTS IN EQUITY SECURITIES WHOSE PRIMARY TRADING MARKETS ARE LOCATED OUTSIDE THE US 9310260068 931026 LETTERS TO THE EDITOR I'M NIHILISTIC CHECK YOUR WEBSTER'S IN A POLITICS & POLICY ARTICLE OCT 5 ON THE HOUSE REPUBLICAN LEADERSHIP YOU USED NIHILISM IN AN ODD WAY I PRESUME BY THE ARTICLE THAT MY POLICIES REPRESENT THE NIHILISTIC WING OF THE REPUBLICAN PARTY IT IS DISTURBING TO SEE CONSTRUCTIVE POLICIES THAT ARE PROJOBS PROFREE MARKETS AND PROSPENDING CUTS DISCREDITED WITH A SIMPLE AND EMOTIONAL LABEL THAT HAS MISLEADING IMPLICATIONS ON HEALTH CARE AN EXAMPLE RAISED IN THE ARTICLE I HAVE SINCE JULY 1991 COCHAIRED WITH REP BOB MICHEL THE HOUSE REPUBLICAN TASK FORCE ON HEALTH THE RESULT A 383PAGE AFFORDABLE HEALTH CARE NOW BILL WITH A GROWING LIST OF 125 COSPONSORS THAT I DISAGREE WITH THE ADMINISTRATION'S BIGGOVERNMENT BUREAUCRATIC AND COSTLY APPROACH TO REFORM DOES NOT IN ANY WAY MEAN THAT I OPPOSE CHANGES IN OUR HEALTH CARE SYSTEM RATHER I AND MY COLLEAGUES ARGUE FOR A VASTLY DIFFERENT SET OF CHANGES MOREOVER I HAVE WORKED WITH REP JOHN KASICH TO DEVELOP THE HOUSE REPUBLICAN BUDGET CUT SPENDING FIRST TO DEVELOP A WORKFARE REPLACEMENT FOR THE CURRENT WELFARE SYSTEM TO HELP JACK KEMP FORMER SECRETARY OF HUD REPLACE THE CURRENT PUBLIC HOUSING DISASTER TO HELP PASS EDUCATIONAL VOUCHERS TO GIVE POOR CHILDREN A BETTER OPPORTUNITY FOR A QUALITY EDUCATION AND TO DEVELOP A YOUTH JOBS BILL BASED ON WORKING IN BUSINESS WHICH OF THESE POLICIES ARE NIHILISTIC AS FOR THE CHARGES OF NIHILISM BEING APPLIED TO MY WORK FOR REFORM OF THE HOUSE LET ME SIMPLY STATE MY POLICIES I BELIEVE THE SPEAKER OF THE HOUSE SHOULD BE HONEST CONVICTED FELONS SHOULD NOT BE ALLOWED TO VOTE IN CONGRESS WHILE APPEALING THEIR CONVICTIONS THE CHAIRMAN OF THE HOUSE BANKING COMMITTEE SHOULD NOT GET RICH OFF THE INDUSTRY WHOSE COLLAPSE HE HELPED TO CREATE AND THE HOUSE POST OFFICE SHOULD NOT HAVE DRUG DEALING AND THEFT AS AN OPERATION TECHNIQUE THE HOUSE SHOULD BE OPEN AND ACCOUNTABLE IT IS A PLACE OF HONOR FOR OUR COUNTRY AND THE MEN AND WOMEN WHO SERVE WITHIN IT IF THESE ARE NIHILISTIC THEN WHAT WOULD IDEALISTIC POLICIES BE IN MARKET PARLANCE YOU ARE TESTING THE LOWS IN YOUR DESCRIPTION OF NEWT GINGRICH AND OTHER CONSERVATIVE PRINCIPLED HOUSE MEMBERS AS NIHILISTS THE STRUGGLE TO PRESERVE A FEW NICHES OF LIBERTY COULD HARDLY FLOW FROM WHAT MY OLD WEBSTER'S DESCRIBES AS A DOCTRINE THAT ALL EXISTING SOCIAL POLITICAL AND ECONOMIC INSTITUTIONS MUST BE COMPLETELY DESTROYED 9310260067 931026 CREATIVE TECHNOLOGY LICENSE SINGAPORE CREATIVE TECHNOLOGY LTD SAID IT LICENSED DIGITAL EQUIPMENT CORP'S DECTALK TEXTTOSPEECH TECHNOLOGY FOR INCORPORATION INTO ITS 16BIT SOUND BLASTER AUDIO BOARDS THE TEXTTOSPEECH TECHNOLOGY IS OFTEN USED TO PROVIDE IMPROVED COMMUNICATION FOR PEOPLE WHO ARE VISUALLY OR VOCALLY IMPAIRED IT IS NOW ALSO BEING DEVELOPED AS A SUPPLEMENT TO WORDPROCESSING SPEECHRECOGNITION AND SCHEDULING SOFTWARE PROGRAMS AND AS A TOOL FOR PROOFREADING DOCUMENTS CREATIVE TECHNOLOGY SAID 9310260066 931026 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN TURKMENISTAN WILL SWITCH TO A SYSTEM OF WESTERNBACKED MARKET REFORMS THE DEPUTY PRIME MINISTER OF THE CENTRAL ASIAN REPUBLIC SAID EXPRESSING HOPE THE CHANGES WILL SPUR FOREIGN INVESTMENT THE OFFICIAL BORIS SHIKHMURADOV TOLD THE REUTERS NEWS AGENCY THAT UNDER THE PLAN WHICH HE SAID THE GOVERNMENT HASN'T OFFICIALLY UNVEILED BUT HAS GOT INTERNATIONAL MONETARY FUND BACKING MOST PRICES WOULD BE FREED NOV 1 THE DAY THAT THE MANAT CURRENCY IS TO REPLACE THE SOVIET RUBLE A PRIVATIZATION PROGRAM WOULD BEGIN DEC 1 AND MOST STATEOWNED ENTERPRISES WOULD BE SOLD OFF BY MAY 1 HE SAID TURKMENISTAN HAS AGREED TO ACCEPT IMF GUIDANCE AND WOULD SOON GET IMF AID TO BACK THE NEW CURRENCY TURKMENISTAN WITH 42 MILLION PEOPLE IS ONE OF THE FEW FORMER SOVIET REPUBLICS TO BUILD UP A SIGNIFICANT TRADE SURPLUS WHICH THIS YEAR COULD TOTAL 2 BILLION MAINLY FROM NATURAL GAS SALES TO WESTERN EUROPE THE PARIS METRO COULD SMELL SWEETER STARTING JAN 1 WHEN A PERFUME NAMED FRANCINE WILL BE USED TO MASK OFFENSIVE ODORS IN THE SUBWAY SYSTEM THE SCENT A BLEND OF LAVENDER MINT AND EUCALYPTUS WON OUT OVER A MORE FLORAL FRAGRANCE IN A SNIFF TEST BY SOME OF THE FOUR MILLION DAILY COMMUTERS IN THE FRENCH CAPITAL THE SCENT WILL BE APPLIED IN STEAM CLEANINGS CHINA ISSUED A THIRD ANTICORRUPTION EDICT IN AS MANY DAYS BANNING GOVERNMENTFUNDED TRIPS ABROAD UNLESS THEY HAVE OFFICIAL PURPOSES AND EXCLUDE SIGHTSEEING JUNKETS HAVE BECOME INCREASINGLY POPULAR FROM ONE PROVINCE ALONE 11572 GOVERNMENT AND COMMUNIST PARTY EMPLOYEES TRAVELED ABROAD AT GOVERNMENT EXPENSE BETWEEN OCTOBER 1992 AND APRIL 1993 FEW ON OFFICIAL BUSINESS ON SATURDAY THE GOVERNMENT AND PARTY ORDERED THEIR DEPARTMENTS TO CLOSE OR SELL ANY BUSINESSES THEY OPERATE AND ON SUNDAY THEY BARRED FEES FOR PUBLIC SERVICES SUCH AS POLICE CHARGING VICTIMS TO INVESTIGATE CRIMES GERMANY'S STATE POSTAL SYSTEM SAID IT WOULD RAISE PACKAGE RATHER THAN LETTER RATES TO RETURN TO PROFITABILITY NEXT YEAR A NECESSARY STEP IN THE DEUTSCHE BUNDESPOST POSTDIENST'S PLAN TO FLOAT SHARES BY 1998 PARCEL RATES ARE TO GO UP JULY 1 THE POSTAL SERVICE HAD LOSSES OF 155 BILLION LAST YEAR AND 131 BILLION IN 1991 ONLY PARTLY OFFSET BY EARNINGS FROM ITS SISTER TELECOMMUNICATIONS COMPANY POSTDIENST WHICH HAD 378000 EMPLOYEES LAST YEAR PLANS TO CUT 33500 JOBS IN THE NEXT SIX YEARS THROUGH ATTRITION AND EARLY RETIREMENT MEXICO COLOMBIA AND VENEZUELA EXPECT TO SIGN A BROADBASED FREETRADE ACCORD THIS YEAR THE SOCALLED GROUP OF THREE AGREEMENT ALSO WOULD ALLOW FOR MEMBERSHIP BY BOLIVIA PERU AND ECUADOR THE TRADE PACT WOULD BE THE SECOND NEGOTIATED BY MEXICO AFTER A 1991 AGREEMENT WITH CHILE WITH THE GOAL OF LOWERING TARIFFS AND SETTING UNIFORM RULES FOR TRADE AND INVESTMENT THE GROUP OF THREE TALKS HAVE BEEN UNDER WAY MORE THAN TWO YEARS BUT THE PACE SLOWED AS MEXICO WORKED ON THE PROPOSED NORTH AMERICAN TRADE PACT MECHANIZATION OF FARMING IN VIETNAM HAS ACCELERATED RAPIDLY IN RECENT YEARS FOLLOWING THE TRANSFER OF LAND OWNERSHIP FROM COMMUNISTSTYLE COOPERATIVES TO HOUSEHOLDS AND INDIVIDUALS THE OFFICIAL VIETNAM NEWS AGENCY SAID FARM TOOLS AND MACHINES ARE BEING USED MORE EFFICIENTLY AND THE NUMBER OF MACHINES IN USE HAS INCREASED LARGE TRACTORS PREVIOUSLY OWNED BY THE STATE HAVE BEEN SENT TO SOUTHERN PROVINCES WHERE DEMAND FOR THEM IS HIGH BUT MECHANIZATION IN MANY CENTRAL AND NORTHERN AREAS HAS DECLINED ALONG WITH RICE PRICES IN THE CONVERSION TO PRIVATE FARM PRODUCTION PROCLAIMING THAT THE EUROPEAN COMMUNITY'S RECESSION HAS BOTTOMED OUT AN EC OFFICIAL SAID NEW FORECASTS OF MODEST GERMAN ECONOMIC GROWTH NEXT YEAR COULD BOOST THE TRADE BLOC'S OUTLOOK HENNING CHRISTOPHERSEN EC ECONOMICS COMMISSIONER SAID THAT IF THE LATEST GERMAN GROWTH FORECASTS ARE CORRECT THE OVERALL EC EXPANSION COULD RANGE FROM 15 TO 2 NEXT YEAR THE EC COMMISSION IN JUNE FORECAST 125 GROWTH IN 1994 FOLLOWING A 05 CONTRACTION THIS YEAR GERMAN ECONOMIC INSTITUTES PROJECTED A 15 INCREASE IN 1994 GROSS DOMESTIC PRODUCT AFTER A 15 CONTRACTION THIS YEAR EACH 1 INCREASE FOR GERMANY COULD TRANSLATE TO A 03 BOOST FOR THE EC BUT EVEN UPGRADED EC FORECASTS WILL DO LITTLE TO REDUCE EC UNEMPLOYMENT NOW 104 AND EXPECTED TO HIT 12 NEXT YEAR OFFICIALS SAID GROWTH BETWEEN 25 AND 3 IS NEEDED TO LOWER THE EC'S JOBLESS RATE BLAMED ON RIGIDITY OF EUROPE'S LABOR MARKETS AND SLUMPING COMPETITIVENESS IN VLADIVOSTOK THE BOOMING RUSSIAN FAR EAST PORT THAT'S JUST A SHORT HOP FROM JAPAN GENERAL MOTORS CORP HOPES TO SELL 250 CADILLAC CARS NEXT YEAR THE ITARTASS NEWS AGENCY SAID TALL RUSSIANS ARE ALREADY TIRED OF SQUEEZING BEHIND THE WHEELS OF SMALL SECONDHAND JAPANESE CARS IN ROME BURGLARS STOLE CARTIER WATCHES AND OTHER JEWELRY VALUED AT MORE THAN 2 MILLION FROM THE FASHION DESIGNER VALENTINO'S STUDIO SOME OF THE PROCEEDS FROM A THREEDAY SALE OF THE ITEMS WERE TO GO TO THE AIDS CHARITY ORGANIZATION LIFE OF WHICH VALENTINO IS A FOUNDER 9310260065 931026 INTERNATIONAL BRIEF BAYERISCHE MOTOREN WERKE AG NINEMONTH SALES FELL 66 AS CAR OUTPUT DECLINED 12 GERMANY'S BAYERISCHE MOTOREN WERKE AG REPORTED THAT NINEMONTH SALES FELL 66 TO 219 BILLION MARKS 1306 BILLION FROM 235 BILLION MARKS IN THE YEAREARLIER PERIOD CAR PRODUCTION FOR THE PERIOD FELL 12 TO 396737 FROM 451156 FOR THE SAME PERIOD LAST YEAR BMW WHICH IS BASED IN MUNICH NOTED ITS PRODUCTION DECLINE OF 12 WAS LESS SEVERE THAN THE OVERALL DROP OF ABOUT 25 FOR THE GERMAN CAR INDUSTRY THE GLOBAL AUTOMOBILE MARKET REACHED BOTTOM IN 1993 AND WILL STABILIZE AT THIS LOW LEVEL IN 1994 THE COMPANY PREDICTED ADDING THAT SLIGHT GROWTH CAN'T BE EXPECTED BEFORE THE MIDDLE OF 1994 BMW SAID A STEEP DECLINE IN DOMESTIC SALES WAS OFFSET SOMEWHAT BY A SLOWER OVERALL FALL IN OVERSEAS MARKETS AND PARTICULARLY BY INCREASED DEMAND IN THE US AND SOUTHEAST ASIA 9310260064 931026 SUPERIOR INDUSTRIES BUYBACK VAN NUYS CALIF SUPERIOR INDUSTRIES INTERNATIONAL INC SAID IT WILL BUY BACK AS MANY AS ONE MILLION COMMON SHARES THE AUTOMOTIVE ACCESSORIES COMPANY DIDN'T SET A TIME LIMIT FOR THE BUYBACK SUPERIOR INDUSTRIES CURRENTLY HAS 301 MILLION SHARES OUTSTANDING SUPERIOR INDUSTRIES' STOCK CLOSED YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT 4025 A SHARE DOWN 125 9310260063 931026 MONDAY'S MARKETS INDUSTRIALS CLIMB 2431 TO A RECORD GOOD EARNINGS SIGNS OF RECOVERY CITED BOND PRICES RETREAT BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE CATAPULTED TO A RECORD AMID CONTINUED GOOD EARNINGS AND FURTHER SIGNS OF AN IMPROVING ECONOMY BOND PRICES SLUMPED AND THE DOLLAR ROSE THE INDUSTRIAL AVERAGE CLIMBED 2431 POINTS TO 367361 ECLIPSING THE OLD RECORD OF 365209 SET AUG 25 STANDARD & POOR'S 500STOCK INDEX INCHED UP 093 TO 46420 SHORT OF ITS RECORD 46950 BUT THE NASDAQ COMPOSITE INDEX FELL 293 TO 76975 THE DOW INDUSTRIALS RALLIED ON FURTHER EVIDENCE THAT THE ECONOMY MAY BE STRONGER THAN EXPECTED THE LATEST SIGN WAS SEEN IN HEFTY SALES FOR THE NATION'S AUTO MAKERS IN MIDOCTOBER ALSO YESTERDAY THE NATIONAL ASSOCIATION OF REALTORS SAID SALES OF EXISTING HOMES ROSE A BETTERTHANEXPECTED 26 IN SEPTEMBER THE DATA FOLLOWED LAST WEEK'S BETTERTHANEXPECTED REPORT ON SEPTEMBER HOUSING STARTS THERE'S A BELIEF OUT THERE THAT WE'RE STARTING TO SEE A MODEST STRENGTHENING IN THE ECONOMY SAID HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP STOCK PRICES ALSO GOT A BOOST FROM YESTERDAY'S STRING OF GOOD EARNINGS REPORTS AMONG COMPANIES WITH BETTERTHANEXPECTED PROFITS WERE US HEALTHCARE GOODYEAR TIRE & RUBBER AND EXXON WITH THE IMPROVEMENT IN THE ECONOMY INVESTORS CONTINUED TO FAVOR ECONOMICALLY SENSITIVE STOCKS WE'RE SEEING A CONTINUTION OF THE LAST COUPLE OF SESSIONS IN WHICH ECONOMICALLY SENSITIVE STOCKS SEEM TO BE COMING BACK WHILE THE BROADER MARKET ESPECIALLY THOSE STOCKS TIED TO THE LOWINTERESTRATE TREND ARE ACTING MORE POORLY SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH THE NASDAQ INDEX SUFFERED AS INVESTORS CONTINUED TO TAKE PROFITS IN THE RECENTLY SIZZLING MARKET MR SOLLOWAY SAID A DOWNTURN IN NASDAQ IS HEALTHY AFTER THE RALLY IN THAT MARKET RAISED FEARS OF EXCESSIVE SPECULATION NASDAQ SHOULD EXPERIENCE SEVERAL MONTHS OF UNDERPERFORMANCE HE SAID WE NEED TO SHAKE OUT THE FROTH IN THE NASDAQ STRONGER ECONOMIC NEWS SPELLED TROUBLE FOR BONDS THE TREASURY'S BENCHMARK 30YEAR BOND SANK FOR THE THIRDCONSECUTIVE DAY WITH THE YIELD RISING TO 6 FROM 597 FRIDAY THE LONG BOND WAS DOWN SHARPLY BY MIDAFTERNOON BUT RECOVERED SOMEWHAT LATE IN THE DAY AS OIL PRICES FELL WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 012 TO 11359 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2572 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1085 ISSUES FELL AND 929 ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 1/4 POINT OR MORE THAN 250 FOR EACH 1000 FACE AMOUNT TO YIELD 6 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16860 MARKS AND 10858 YEN COMPARED WITH 16750 MARKS AND 10808 YEN FRIDAY 9310260062 931026 WHAT'S NEWS WORLDWIDE THE LIBERAL PARTY WON CANADA'S ELECTION ENDING CONSERVATIVE RULE THE LIBERALS LED BY VETERAN POLITICIAN JEAN CHRETIEN CAPTURED THE LARGEST NUMBER OF SEATS IN THE HOUSE OF COMMONS ALLOWING THEM TO REPLACE THE PROGRESSIVE CONSERVATIVE PARTY GOVERNMENT OF PRIME MINISTER CAMPBELL CHRETIEN 59 A QUEBEC LAWYER HAS DEMANDED THAT THE NORTH AMERICAN FREE TRADE AGREEMENT BE RENEGOTIATED TO ADDRESS ISSUES SUCH AS THE ALLEGED MISUSE OF US TRADEREMEDY LAWS TO HARASS CANADIAN EXPORTERS THE US OPPOSES ANY RENEGOTIATION OF NAFTA THE LIBERALS FREQUENTLY CRITICIZED FORMER PROGRESSIVE CONSERVATIVE PRIME MINISTER MULRONEY FOR BEING TOO ACCOMMODATING TO THE US GOVERNMENT CLINTON REJECTED WASHINGTON'S REQUEST FOR TROOPS TO FIGHT CRIME THE PRESIDENT TURNED DOWN A REQUEST BY THE MAYOR OF WASHINGTON DC FOR NATIONAL GUARD TROOPS TO HELP MAKE THE STREETS SAFER BUT CLINTON AGREED TO SUPPORT LEGISLATION THAT WOULD GIVE THE MAYOR AUTHORITY TO CALL OUT THE NATIONAL GUARD AN AUTHORITY THAT GOVERNORS ALREADY HAVE HE ALSO SCHEDULED A MEETING THIS MORNING BETWEEN MAYOR KELLY AND THREE ADMINISTRATION OFFICIALS TO FIND OTHER WAYS TO HELP THE CITY CLINTON WAS SAID TO BE CONCERNED ABOUT SETTING A PRECEDENT WITH AIDES WARNING THAT MAYORS ACROSS THE COUNTRY MIGHT SOON BE ASKING FOR SIMILAR HELP MILITIAMEN LOYAL TO AIDID CLASHED WITH SUPPORTERS OF ANOTHER CLAN LEADER ALI MAHDI IN OPEN WARFARE THAT SHATTERED AN UNSTEADY TRUCE IN SOMALIA'S CAPITAL UN OFFICIALS SAID AT LEAST 10 SOMALIS WERE KILLED AND 45 WOUNDED IN FIGHTING AROUND AIDID'S STRONGHOLD IN MOGADISHU A UN ENVOY MADE A TELEVISED APPEAL FOR FORMER PRESIDENT CARTER AND OTHER WORLD LEADERS TO FLY TO HAITI IMMEDIATELY TO PROTECT LAWMAKERS TRYING TO RESTORE DEMOCRACY DANTE CAPUTO SAID THE MOVE WOULD ENCOURAGE FRIGHTENED PRODEMOCRACY LEGISLATORS TO COME OUT OF HIDING AND VOTE ON MEASURES THAT WOULD END A POLITICAL DEADLOCK SCIENTISTS IN WASHINGTON SAID THEY WILL MAKE NO FURTHER ATTEMPTS TO CLONE HUMAN EMBRYOS FOR THE TIME BEING ACKNOWLEDGING THAT THEIR EXPERIMENT SPARKED A FURIOUS REACTION THE CONTROVERSY HAS LED SEVERAL MEDICAL GROUPS TO PLAN GUIDELINES TO OVERSEE EFFORTS TO REPRODUCE A HUMAN EMBRYO IN A LAB THE US PLEDGED 330 MILLION IN ECONOMIC AND TECHNICAL ASSISTANCE TO UKRAINE AFTER ITS PRESIDENT ASSURED SECRETARY OF STATE CHRISTOPHER THAT UKRAINE WOULD SURRENDER ITS NUCLEAR ARSENAL BUT UKRAINE'S FOREIGN MINISTER AND KEY LAWMAKERS RAISED DOUBTS ABOUT WHEN AND IF THAT COMMITMENT WILL BE MET THE JURY IN THE DENNY CASE FOLLOWED THE LAW AND DIDN'T SUCCUMB TO FEAR OF RIOTS THE JURY FOREWOMAN SAID BUT AN ALTERNATE JUROR CONDEMNED THE VERDICTS AS CONDONING THE ATTACK ON THE TRUCK DRIVER THE COMMENTS WERE THE FIRST BY JURORS IN THE LOS ANGELES CASE WHICH ENDED WITH TWO DEFENDANTS CLEARED OF THE MOST SERIOUS CHARGES ISRAEL FREED HUNDREDS OF PALESTINIAN PRISONERS A FIRST STEP TOWARD MASS RELEASES AIMED AT REINFORCING AN ISRAELIPLO PEACE PACT THE ISRAELI GOVERNMENT HAD PLANNED TO FREE UP TO 700 DETAINEES BUT THE ARMY SAID SOME WOULD HAVE TO WAIT UNTIL TODAY THOSE RELEASED INCLUDED WOMEN TEENAGERS THE ELDERLY AND THE SICK CLINTON AND MUBARAK DIFFERED ON WHETHER PRESSING FOR AN ISRAELISYRIAN ACCORD SHOULD BE THE NEXT STEP TOWARD A BROAD MIDEAST PEACE SETTLEMENT THE EGYPTIAN LEADER WHO VISITED CLINTON AT THE WHITE HOUSE SAID IMMEDIATE PROGRESS IN ISRAELSYRIA TALKS WAS CRUCIAL BUT CLINTON SAID THOSE TALKS SHOULDN'T BE RUSHED CHINA HAS LAUNCHED A CRACKDOWN ON DISSENT AND THE DISSEMINATION OF INFORMATION IN WHAT APPEARS TO BE AN EFFORT TO REASSERT CENTRALGOVERNMENT CONTROL CHINESE AUTHORITIES RECENTLY STEPPED UP ARRESTS OF DISSIDENTS AND HAVE CLAMPED DOWN ON THE USE OF SATELLITE DISHES PAGERS AND CORDLESS TELEPHONES UN CONVOYS WERE CAUGHT IN A CROSSFIRE BETWEEN CROATS AND MUSLIMS IN CENTRAL BOSNIA A DANISH TRUCK DRIVER WAS KILLED AND NINE UN WORKERS WERE WOUNDED SEPARATELY BOSNIAN CROATS PREVENTED UN PEACEKEEPERS FROM ENTERING A VILLAGE TO INVESTIGATE CHARGES OF A WEEKEND MASSACRE OF 80 MUSLIMS BY MASKED CROAT SOLDIERS 9310260061 931026 INTERNATIONAL BRIEF MITSUBISHI CORP RESTRUCTURING IS PLANNED AFTER REVIEW OF FIRM'S UNITS MITSUBISHI CORP PLANS TO RESTRUCTURE ITS GROUP OPERATIONS BY REVIEWING THE PERFORMANCE OF ITS SUBSIDIARIES AND AFFILIATES AND LIQUIDATING SOME LOSSRIDDEN UNITS A COMPANY SPOKESMAN SAID THE RESTRUCTURING WILL TAKE PLACE IN FISCAL 1994 WHICH BEGINS APRIL 1 THE COMPANY'S EXTRAORDINARY LOSSES FOR THE CURRENT FISCAL YEAR MAY GROW BY MORE THAN THE 30 BILLION YEN 277 MILLION EARLIER EXPECTED BY THE PARENT AS A RESULT OF THE RESTRUCTURING THE PARENT COMPANY PLANS TO REVIEW ALL 600 SUBSIDIARIES AND AFFILIATES BY JANUARY TO DECIDE WHETHER EACH COMPANY IS DOING WELL ENOUGH TO CONTINUE AS IS WHETHER IT IS DOING MODERATELY WELL FOR THE MEANTIME BUT MAY BE LIQUIDATED OR ABSORBED BY THE PARENT IN THE FUTURE OR IS DOING SO POORLY THAT IMMEDIATE STEPS SUCH AS CLOSURE OR ABSORPTION ARE REQUIRED MITSUBISHI ONE OF JAPAN'S SIX LARGEST GENERAL TRADING COMPANIES IS THE NUCLEUS OF THE MITSUBISHI GROUP OF COMPANIES IT IS STRONG IN HEAVY INDUSTRIAL PRODUCTS BUT IS ALSO MOVING INTO HIGH TECHNOLOGY 9310260060 931026 INTERNATIONAL BRIEF CREDIT SUISSE UNIT OF CS HOLDING EXPECTS GOOD RESULTS' FOR THIS YEAR CREDIT SUISSE SWITZERLAND'S SECONDLARGEST COMMERCIAL BANK SAID IT EXPECTS TO SHOW GOOD RESULTS FOR 1993 AND THAT THIRDQUARTER EARNINGS WERE SIGNIFICANTLY HIGHER THAN IN THE SAME PERIOD A YEAR AGO THE BANK A UNIT OF CS HOLDING AG OF SWITZERLAND DIDN'T PROVIDE FIGURES FOR THIRDQUARTER EARNINGS OR GIVE A SPECIFIC PROFIT FORECAST FOR THE YEAR INVESTMENT AND TRADING BUSINESS IN PARTICULAR BENEFITED FROM THE FAVORABLE MARKET CONDITIONS AND MADE A SIGNIFICANT CONTRIBUTION TO THE GROUP'S SUCCESSFUL THIRDQUARTER RESULTS THE BANK SAID IT ADDED THAT ITS LONDONBASED UNIT CREDIT SUISSE FINANCIAL PRODUCTS WHICH SPECIALIZES IN DERIVATIVES TRANSACTIONS ONCE AGAIN PROVED AN IMPORTANT SOURCE OF INCOME THE BANK SAID HOWEVER THAT LOANLOSS PROVISIONS REMAINED HIGH IN THE QUARTER 9310260059 931026 CALIFORNIA MICROWAVE PURCHASE SUNNYVALE CALIF CALIFORNIA MICROWAVE INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE A UNIT OF TELESCIENCES INC SAN FRANCISCO THE ELECTRONICCOMMUNICATIONS EQUIPMENT COMPANY SAID YESTERDAY THAT IT WILL ACQUIRE THE UNIT TELESCIENCES TRANSMISSION SYSTEMS INC FOR 237 MILLION IN CASH AND 5 MILLION IN A FIVEYEAR CONVERTIBLE SUBORDINATED NOTE CALIFORNIA MICROWAVE SAID THAT AS PART OF THE DEAL MOTOROLA INC SCHAUMBURG ILL AGREED TO PURCHASE A 57 MILLION CONVERTIBLE SUBORDINATED NOTE FROM CALIFORNIA MICROWAVE 9310260058 931026 WORLD STOCK MARKETS WILL EUROPEAN STOCKS STAY HOT BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON CAN THE EXPLOSIVE RALLY IN EUROPE'S STOCK MARKETS LAST THE ANSWER MONEY MANAGERS ANALYSTS AND INDIVIDUAL INVESTORS THE WORLD OVER ARE COMING UP WITH IS THIS YES BUT THE BUT IS THAT THE BEST OF THE GAINS ARE BEHIND US SAYS JOE ROONEY EUROPEAN EQUITY STRATEGIST AT LEHMAN BROTHERS INTERNATIONAL IN LONDON THAT'S ESPECIALLY TRUE HE SAYS FOR AMERICANS WHO MEASURE THEIR GAINS AND LOSSES IN DOLLARS ON FRIDAY NINE EUROPEAN STOCK MARKETS LONDON FRANKFURT PARIS ZURICH AMSTERDAM MADRID STOCKHOLM COPENHAGEN AND HELSINKI SPURTED TO ALLTIME HIGHS ON THE BACK OF INTERESTRATE CUTS BY EVERY MAJOR CENTRAL BANK IN EUROPE AND THE EXPECTATION OF EVEN LOWER RATES IN COMING MONTHS MOST EUROPEAN MARKETS RETREATED A BIT YESTERDAY WHILE THE DOW JONES INDUSTRIAL AVERAGE WAS BUSY SETTING A RECORD BUT SO FAR THIS YEAR THE GERMAN AND SWISS STOCK MARKETS ARE UP 29 IN DOLLAR TERMS ITALY 31 THE NETHERLANDS 25 SPAIN 26 AND SWEDEN 33 THE DOW INDUSTRIALS BY CONTRAST ARE UP 113 SO FAR THIS YEAR BEHIND EUROPE'S STOCK SURGE IS A SIMPLE THESIS IF IT WORKED IN AMERICA IT WILL WORK IN EUROPE INTEREST RATES CAME DOWN IN THE US AND AS THEY CAME DOWN THE STOCK MARKET DID EXTRAORDINARILY WELL NOTWITHSTANDING THAT EARNINGS GROWTH WAS POOR SAYS GARY P BRINSON PRESIDENT AND MANAGING PARTNER AT BRINSON PARTNERS INC A CHICAGO MONEYMANAGEMENT FIRM IN EUROPE THEY SAY THE SAME THING IS GOING TO HAPPEN BARRY M GILLMAN MANAGING DIRECTOR AT PCM INTERNATIONAL INC A SHORT HILLS NJ UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA SAYS THE BULL MARKETS IN US STOCKS AND BONDS FROM 1990 TO 1992 IS PROBABLY A GOOD MODEL FOR WHAT'S HAPPENING IN EUROPE BUT HE WARNS THAT UNLIKE EARLIER THIS YEAR EUROPE'S STOCK MARKETS NO LONGER LOOK BARGAINBASEMENT CHEAP TO FIND ANY REAL BARGAIN IN EUROPE RIGHT NOW YOU'VE GOT TO TAKE A BIG RISK HERE'S THE BULL'S CASE FOR EUROPEAN STOCKS DECLINING INTEREST RATES WILL FORCE EUROPEAN INVESTORS TO SELL BONDS AND BUY SHARES A STRONGER DOLLAR WILL MAKE BIG EUROPEAN MULTINATIONAL COMPANIES MORE COMPETITIVE AGAINST THEIR US RIVALS AND ALSO FATTEN THE BALANCE SHEETS OF THOSE COMPANIES WITH LARGE DOLLAR SALES THE CORPORATE RESTRUCTURING AND LAYOFFS UNDERWAY IN GERMANY AND ELSEWHERE SHOULD MAKE COMPANIES MORE EFFICIENT AND EVENTUALLY ENABLE THEM TO EARN BETTER RETURNS IN SPITE OF DEPRESSED OVERTAXED ECONOMIES AND RISING UNEMPLOYMENT EQUITY INVESTORS KNOW THAT WHERE THERE IS PAIN THERE WILL BE GAIN SAYS MARCUS GRUBB AN INTERNATIONAL EQUITY STRATEGIST AT SALOMON BROTHERS INTERNATIONAL IN LONDON MEANWHILE THE BULLS ARE ALSO COUNTING ON US INVESTORS' APPETITE FOR THINGS FOREIGN THEY PURCHASED A NET 115 BILLION OF EUROPEAN STOCKS IN THE FIRST HALF OF THIS YEAR TO KEEP GROWING IT'S A NEAT HYPOTHESIS NONETHELESS SOME MONEY MANAGERS ARE BEGINNING TO HEDGE THEIR BETS PEOPLE ARE INVESTING ON STORIES AND IF THOSE STORIES DON'T MATERIALIZE THEN GOOD LUCK SAYS RAINER ERDTMANN A PORTFOLIO MANAGER AT COMMERZ INTERNATIONAL CAPITAL MANAGEMENT GMBH IN FRANKFURT WHILE STILL OVERWEIGHTED IN EUROPEAN STOCKS COMPARED WITH THEIR VALUE IN INTERNATIONAL EQUITY INDEXES BOTH MR BRINSON AND DAVID ROCHE GLOBAL STRATEGIST AT MORGAN STANLEY & CO IN LONDON ARE STARTING TO TRIM THEIR EXPOSURE A BIT EUROPEAN STOCK PRICES MAY ALREADY REFLECT EXPECTED INTERESTRATE DECLINES MR BRINSON SAYS ALMOST EVERYBODY I HEAR FROM SAYS INTEREST RATES ARE COMING DOWN ISN'T THAT GREAT STOCK MARKETS ARE GOING TO KEEP GOING THROUGH THE ROOF' BUT HE WARNS USUALLY IN THIS BUSINESS WHEN EVERYBODY HAS REACHED THE SAME CONCLUSION YOU START TO WONDER IF IT'S GOING TO COME TRUE MR ROCHE OF MORGAN STANLEY ALSO CONTENDS THAT EUROPEAN CORPORATE EARNINGS ARE GOING TO DISAPPOINT INVESTORS IN ADDITION HE ARGUES THAT MOST EUROPEAN CENTRAL BANKS WILL LOWER RATES MORE SLOWLY THAN MANY EXPECT WHICH TRANSLATES INTO VOLATILE CURRENCY AND STOCK MARKETS SO MR ROCHE SAYS EUROPE'S STOCK MARKETS MIGHT NOT RISE MORE THAN ANOTHER 10 WHICH HE ARGUES MAKES SOME EUROPEAN BOND MARKETS PARTICULARLY ITALY'S A MORE ATTRACTIVE INVESTMENT LOOKING FOR VALUE AMONG EXPENSIVE MARKETS MR BRINSON LIKES BELGIAN SHARES WHICH HAVEN'T RISEN AS FAR AS OTHER EUROPEAN STOCKS AND WHICH HAVE SUPERIOR DIVIDEND YIELDS MR ROONEY OF LEHMAN BROTHERS BELIEVES SPANISH FRENCH AND SWISS STOCKS OFFER THE BEST POTENTIAL DURING THE NEXT 12 MONTHS HE SEES THE FRENCH AND SPANISH MARKETS CLIMBING 17 IN LOCAL CURRENCY TERMS COMPARED WITH JUST 10 FOR GERMANY ONCE YOU FACTOR IN OUR US DOLLAR FORECAST YOU ARE ACTUALLY TALKING ABOUT NEGATIVE RETURNS FOR US INVESTORS IN THE CASE OF GERMANY SAYS MR ROONEY MR ERDTMANN ALSO PREFERS FRANCE AND SPAIN BUT HE ADDS THAT COMMERZ INTERNATIONAL IS TAKING DEFENSIVE MEASURES SUCH AS USING FUTURES TO MOVE FASTER IN AND OUT OF THE MARKET USING A COMBINATION OF VALUATION TECHNIQUES SPAIN BELGIUM ITALY AND THE NETHERLANDS ARE EUROPE'S CHEAPEST STOCK MARKETS ACCORDING TO THE LEUTHOLD GROUP THE MINNEAPOLISBASED RESEARCH DIVISION OF WEEDEN & CO AS A STOCK PICKER MR GILLMAN OF PCM PREFERS CYCLICALS TO HOPETHEYRECOVER SITUATIONS ONE FAVORITE IS KLM ROYAL DUTCH AIRLINES WHICH HE SAYS IS SENSITIVE TO THE DOLLAR SENSITIVE TO INTEREST RATES SENSITIVE TO OIL PRICES HAS A FUTURE AS AN ONGOING COMPANY AND IS A CYCLICAL ANOTHER IS MANNESMANN AG A BIG GERMAN CAPITAL GOODS COMPANY THAT IS ALSO IN THE CELLULARPHONE BUSINESS NOTING THAT A GOOD DEAL OF ITS FUTURE CASH FLOW AND EARNINGS ARE GOING TO COME FROM CELLULAR PHONES NOT THE METALPIPE BUSINESS HE SAYS IF THEY DO OK IN THE CELLULAR BUSINESS THEY LOOK REASONABLY CHEAP A BIG CONCERN FOR AMERICANS IS THE POTENTIAL FOR A STRONGER DOLLAR WHICH COULD NOT ONLY REDUCE THEIR OVERSEAS EARNINGS BUT WIPE THEM OUT MANY ANALYSTS SEE THE DOLLAR RISING TO 175 MARKS OR ANOTHER 4 BY YEAREND AND POSSIBLY HIGHER AFTER THAT WHAT'S MORE A RISING DOLLAR COULD THREATEN TO INTERRUPT THE HUGE FLOW OF US MONEY INTO EUROPE'S MARKETS THE WHOLE THING IN EUROPE IS BASED ON US FUNDS COMING IN SAYS MR ROCHE OF MORGAN STANLEY OF THE CASE FOR RISING EUROPEAN SHARE PRICES IF THE DOLLAR IS GOING UP WHAT DOES AN AMERICAN WANT TO OWN EUROPE FOR LONDON STOCK PRICES RETREATED FROM RECORD LEVELS ON PROFITTAKING BUT FRANKFURT SHARES AGAIN ROSE TO AN ALLTIME HIGH THOUGH ON SHARPLY LOWER VOLUME TOKYO'S MAIN INDEX STENGTHENED MONDAY FOR THE FOURTHCONSECUTIVE INCREASE LED BY GAINS AMONG LARGECAPITALIZATION STOCKS BUT THE BROADER MARKET WEAKENED WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11359 UP 012 REFLECTING INCREASES ALL REGIONS RESTAURANT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13166 UP 241 OR 19 WITH MCDONALD'S OF THE US POSTING A 34 GAIN IN ITS LOCAL CURRENCY CASINOS STOCKS TRAILED AT 19911 DOWN 450 OR 22 WITH GENTING OF MALAYSIA SLIDING 56 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 142 POINTS TO 31848 THE FT 30STOCK INDEX DROPPED 136 POINTS TO 23959 VOLUME WAS 4826 MILLION SHARES COMPARED WITH 3713 MILLION SHARES IN THE PREVIOUS SESSION PROFITTAKING WAS TRIGGERED BY BRITISH NEWS REPORTS THAT THE GOVERNMENT AND CENTRAL BANK OPPOSED LOWER LENDING RATES FOR NOW IN FRANKFURT THE DAX 30STOCK INDEX ROSE 822 POINTS TO A RECORD 207439 WHILE VOLUME FELL FAR BELOW THE AVERAGE OF THE PAST TWO WEEKS WHEN PRICES SCORED A SERIES OF NEW HIGHS THE MOMENTUM SLOWED ON MINIMAL EXPECTATIONS FOR FURTHER RATE CUTS SENTIMENT ALSO WAS DAMPED BY A DISAPPOINTING GERMAN ECONOMIC FORECAST AND HIGHERTHANEXPECTED GERMAN STATE INFLATION DATA IN PARIS STOCKS WEAKENED AS THE EXPECTED BUYING ON THE FIRST DAY OF THE NOVEMBER TRADING ACCOUNT DIDN'T MATERIALIZE FRANCE'S EASING OF ITS TOUGH STANCE IN THE AIR FRANCE STRIKE PROMPTED WORRIES THAT A COMMITMENT TO REDUCE THE GOVERNMENT BUDGET DEFICIT COULD FOUNDER IN MILAN STOCKS FELL ON DIMINISHED BUYING BY FOREIGN INVESTORS WHO HAD HELPED SUPPORT THE MARKET RECENTLY AND ON AN ITALIAN OFFICIAL'S COMMENTS THAT COMPANIES DESIGNATED FOR PRIVATIZATION MAY BE PENETRATED BY ORGANIZED CRIME IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 8541 POINTS FRIDAY ADDED 4450 TO 2030933 AFTER RETREATING FROM THE INTRADAY HIGH OF 2047385 ON TUESDAY IN TOKYO THE NIKKEI FELL 5470 POINTS TO CLOSE THE MORNING SESSION AT 2025463 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 300 MILLION SHARES DOWN FROM 3151 MILLION SHARES IN THE PREVIOUS SESSION THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 1753 POINTS FRIDAY GAINED 635 TO 166944 THOUGH BOTH INDEXES ADVANCED LOSERS OUTNUMBERED GAINERS 634387 AND THE NIKKEI'S FOURTH RISE IN A ROW DIDN'T INDICATE A SUSTAINED RUN AND BOTH BULLISHNESS AND VOLUME DWINDLED IN HONG KONG AFTER FRIDAY'S SLUMP SHARES POSTED SOLID GAINS REBOUNDING FROM EARLY SHARP LOSSES AMONG CORPORATE DEVELOPMENTS IN FRANKFURT DAIMLERBENZ ROSE 550 MARKS TO 755 MARKS 45051 THE INDUSTRIAL COMPANY DECLINED TO COMMENT ON A WEEKEND GERMAN NEWS REPORT THAT DAIMLER EXPECTS A 1993 OPERATING LOSS OF 39 BILLION MARKS 233 BILLION BASED ON UNUSUAL ACCOUNTING WHICH FOR EXAMPLE INCLUDES DIVIDEND PAYMENTS AS A COST DESPITE THEIR GAIN YESTERDAY DAIMLER SHARES ENDED TWO MARKS LOWER THAN THEIR LEVEL AT THE END OF AFTERHOURS ELECTRONIC TRADING FRIDAY 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 9310260057 931026 INTERNATIONAL BRIEF NORSK HYDRO AS COMPANY REGISTERS A PROFIT AGAINST LOSS A YEAR AGO NORSK HYDRO AS OF NORWAY SAID IT SWUNG TO A PRETAX PROFIT OF 725 MILLION KRONER 994 MILLION IN THE THIRD QUARTER FROM A PRETAX LOSS OF 79 MILLION KRONER A YEAR EARLIER NORSK HYDRO ACTIVE IN OFFSHORE OIL AND GAS METALS AND FERTILIZERS SAID THIRDQUARTER REVENUE ROSE TO 1381 BILLION KRONER FROM 1285 BILLION OUR BUSINESS AREAS ARE STILL AFFECTED BY DIFFICULT MARKET CONDITIONS SAID HYDRO'S PRESIDENT EGIL MYKLEBUST NORWEGIAN STOCK TRADERS SAID RESULTS SURPASSED MARKET EXPECTATIONS A TRADER WITH AN OSLO BROKERAGE HOUSE WAS PARTICULARLY PLEASED WITH THE IMPROVEMENT BY HYDRO'S AGRICULTURE UNITS WHICH REPORTED AN OPERATING PROFIT OF EIGHT MILLION KRONER IN THE QUARTER SWINGING FROM AN OPERATING LOSS OF 332 MILLION KRONER A YEAR EARLIER 9310260056 931026 MARKETING & MEDIA ADVERTISING BATTLE OVER IBM'S PC BUSINESS RAISES ACCOUNT PLANNERS' PROFILE BY KEVIN GOLDMAN THE COMPETITION FOR INTERNATIONAL BUSINESS MACHINES' PERSONALCOMPUTER ACCOUNT HAS RAISED THE PROFILE OF ONE OF MADISON AVENUE'S FASTESTGROWING EXECUTIVE POSITIONS THE ACCOUNT PLANNER AN ACCOUNT PLANNER ESSENTIALLY TALKS TO CONSUMERS ABOUT A PRODUCT AND THEN SHARES THOSE OPINIONS WITH THE CLIENT AND CREATIVE EXECUTIVES WITHIN THE AD AGENCY THE PLANNER'S ROLE IS ON THE INCREASE AMONG US AGENCIES AND ONE AGENCY EXECUTIVE INVOLVED IN THE IBM ACCOUNT REVIEW CALLED IT THE BATTLE OF THE PLANNERS THE WINNER MERKLEY NEWMAN HARTY AS WELL AS FINALISTS CHIAT/DAY AND GOODBY BERLIN & SILVERSTEIN EMPLOYED ACCOUNT PLANNERS WHILE TALKING WITH IBM JANE NEWMAN THE 46YEAROLD EXECUTIVE VICE PRESIDENT AND DIRECTOR OF STRATEGIC PLANNING AT MERKLEY NEWMAN IS WIDELY CREDITED WITH SNARING THE IBM DOMESTIC CCOUNT WHICH HAS BILLINGS OF 50 MILLION I REPRESENT THE TARGET AUDIENCE SHE SAYS A PLANNER KEEPS TAPPING THE TARGET AUDIENCE FOR INFORMATION ABOUT THE PRODUCT SHE CONCEIVED OF THE SIXFOOTTALL COLLAGES OF PHOTOS REPRESENTING CONSUMERS' PERCEPTIONS OF THE OLD IBM WHERE IBM IS NOW AND WHERE IT COULD BE THAT ACCORDING TO ONE EXECUTIVE TORE THE DOORS OFF THE PRESENTATION CREATING AN EXECUTIVE JOB WITH THE SPECIFIC ROLE OF DELVING INTO THE LIKES AND DISLIKES OF CONSUMERS IS A RELATIVELY NEW ENDEAVOR AT US AGENCIES THE IBM VICTORY BY MERKLEY NEWMAN A UNIT OF OMNICOM GROUP IS THE CLEAREST MOST VISIBLE EXAMPLE OF SUCH A POSITION'S ADVANTAGES ACCOUNT PLANNING GENERALLY IS CREDITED TO THE LATE STANLEY POLLITT OF OMNICOM'S BRITISH AGENCY BOASE MASSIMI POLLITT OF WHICH MS NEWMAN IS AN ALUMNA WHILE GREAT PLANNING HAS BEEN AROUND STANLEY WAS THE FIRST TO PROPOSE AN ORGANIZATIONAL FIX TO AD AGENCIES IN WHICH THE AGENCY HAD TO THINK ABOUT THE PRODUCT FROM A CONSUMER'S POINT OF VIEW AND NOT THE CLIENT'S POINT OF VIEW SAYS DAMIEN O'MALLEY EXECUTIVE VICE PRESIDENT AND DIRECTOR OF PLANNING AT OMNICOM'S DDB NEEDHAM AND ANOTHER BOASE MASSIMI ALUMNUS MORE AGENCIES ARE BUYING INTO THE ACCOUNTPLANNER CONCEPT FOR EXAMPLE BACKER SPIELVOGEL BATES A UNIT OF SAATCHI & SAATCHI PLC LAST MONTH BROUGHT LES STERN FROM BACKER'S LONDON OFFICE TO NEW YORK TO HEAD A NEW ACCOUNTPLANNING GROUP TO BE SURE SUCH CONSUMER RESEARCH HAS BEEN DONE FOR YEARS IN FOCUS GROUPS CONDUCTED BY AD AGENCIES THE IMPORTANT THING IS WHAT WE DO WITH THE ANSWERS SAYS MR O'MALLEY THE TWIST IS THAT THE ACCOUNT PLANNER ISN'T ATTACHED TO EITHER THE CREATIVE DEPARTMENT OR THE ACCOUNT MANAGEMENT DEPARTMENT RATHER THE PLANNER IS A COEQUAL WITH THE OTHER TWO MAIN ARTERIES OF AN ADVERTISING AGENCY SAYS MR O'MALLEY WE WORK SIDE BY SIDE WITH THE CREATIVE TEAM UNLIKE THE TRADITIONAL FOCUSGROUP RESEARCHER AND MAKE SURE THE RESEARCH IS REPRESENTED IN THE ADS I SIT IN THE OFFICE WITH THE CREATIVE DIRECTORS AND I'M A CONSTANT RESOURCE IN WAYS THAT TRADITIONAL RESEARCHERS AREN'T SAYS JON STEEL GENERAL MANAGER AND DIRECTOR OF PLANNING AT GOODBY BERLIN A SAN FRANCISCO AD AGENCY IN BROAD TERMS WE KEEP THE AGENCY HONEST SAYS MR STEEL A LOT OF ADVERTISING GETS PRODUCED FROM THE PERSPECTIVE OF A CLIENT OR THE AGENCY WE'RE HERE TO MAKE SURE THE CONSUMER'S PERSPECTIVE IS REPRESENTED FOR AMERICAN ISUZU MOTORS MR STEEL'S UNIT NEEDED TO DETERMINE WHETHER POTENTIAL ISUZU DRIVERS CALLED THE COMPANY'S VEHICLE A SPORTS UTILITY TRUCK A VAN A TRUCK OR A CAR YOU HAVE TO KNOW WHAT KIND OF LANGUAGE THE GROUP YOU'RE SELLING TO USES SAYS MR STEEL ROGER CLAYTON WHO RUNS CLAYTON GREGORY ASSOCIATES A LONDON AD AGENCY CONSULTANCY FIRM SAYS ACCOUNT PLANNERS SAVED THE DAY ON THE UK ADS FOR OXY AN ACNE MEDICATION FROM SMITHKLINE BEECHAM CONSUMER BRANDS A UNIT OF SMITHKLINE BEECHAM IT STAYED AWAY FROM USING SETTINGS LIKE AN ALLGIRLS SCHOOL WITH FRIENDS TALKING ABOUT HOW THE MEDICATION WORKS SAYS MR CLAYTON RESEARCH BY ACCOUNT PLANNERS SHOWED THAT CONSUMERS ONLY CARED ABOUT PIMPLES ON SATURDAY NIGHTS WHEN THEY WOULD GO ON DATES SO OXY PRODUCED ADS SET IN DISCOS ON SATURDAY NIGHTS THAT FEATURED A WOMAN TALKING TO A FRIEND WHILE STANDING IN A BATHROOM WITH A BUCKET OVER HER HEAD THE REASON A PIMPLE THE FRIEND MENTIONS OXY NO SCIENTIFIC EXPLANATIONS COULDN'T ANYONE HAVE COME UP WITH THIS AD YES SAYS MR CLAYTON BUT IT IS MY HONEST BELIEF THAT AN AD AGENCY INCREASES ITS CHANCES WITH A PLANNER YOU ADD TO YOUR ARMOR FOCUS GROUPS TELL YOU THINGS YOUR CLIENT PROBABLY ALREADY KNOWS UNLIKE TRADITIONAL FOCUS GROUPS THE ACCOUNT PLANNER WON'T BRING CONSUMERS TO THE AGENCY AND PLOP THEM IN A ROOM WITH A ONEWAY MIRROR INSTEAD THE NEWFANGLED PLANNER WILL VISIT THE CONSUMER FOR INSTANCE GOODBY BERLIN EXECUTIVES RECENTLY SPENT AN AFTERNOON AT THE HOME OF A TEENAGER WHO INVITED HIS FRIENDS TO A VIDEOGAME MARATHON THE AGENCY WAS STUDYING HOW TEENS PLAY THE GAMES OF A GOODBY BERLIN CLIENT SEGA OF AMERICA GOODBY BERLIN'S MR STEEL ADDS WE HANDLE PORSCHE RATHER THAN GATHER THEM AT THE AGENCY I DO MOST OF THE CONSUMER RESEARCH IN THE PASSENGER SEAT OF THE PORSCHE 911 ACCOUNT ALLIED LYONS'S BASKINROBBINS ICECREAM STORE CHAIN BASED IN GLENDALE CALIF TAPPED THE LOS ANGELES OFFICE OF D'ARCY MASIUS BENTON & BOWLES FOR ITS ESTIMATED 13 MILLION ACCOUNT THE AGENCY SAID BASKINROBBINS DIDN'T RETURN CALLS THE ACCOUNT WAS AT ASHER/GOULD ADVERTISING LOS ANGELES 9310260055 931026 COMMODITIES SELLOFF IN OIL MARKET DROPS PETROLEUM PRICES TO LOWEST LEVEL SINCE SEPTEMBER OPEC MEETING BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL A SURPRISING SELLOFF IN THE OIL MARKET DROPPED PETROLEUM PRICES TO THE LOWEST LEVELS SINCE THE SEPTEMBER MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES PRICES OF CRUDE OIL FELL 50 CENTS A BARREL OR MORE AND FUELS WERE DOWN MORE THAN ONE CENT A GALLON BUT SOME ANALYSTS CITING AN OVERSOLD OIL MARKET LOOK FOR A PRICING REBOUND POSSIBLY BEGINNING TODAY PERCEPTIONS OF A WEAK US GASOLINE MARKET AND SOME CONCERN ABOUT AN OVERSUPPLY OF FUELS CONTRIBUTED TO YESTERDAY'S SELLOFF ANALYSTS SAID BUT TECHNICAL TRADING WAS THE CHIEF FACTOR THEY SAID THE FUNDAMENTALS HAVEN'T CHANGED BUT THE MARKET STARTED HITTING STOPS AND THEN BEGAN FEEDING ON ITSELF AS IT MOVED LOWER SAID PETER BEUTEL AN ENERGY ANALYST AND TRADER WITH BRODY WHITE & CO A NEW YORK COMMODITY BROKERAGE FIRM IN US FUTURES TRADING CRUDE OIL BROKE THROUGH THE FIRST IMPORTANT TECHNICAL POINTTHE PRICE LEVEL OF 18 A BARRELEARLY YESTERDAY FURTHER SELLING WAS APPARENTLY TRIGGERED ON BOTH THE NEW YORK MERCANTILE EXCHANGE AND ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE IT ALSO HAD AN IMPACT ON PRICES PAID DIRECTLY TO PRODUCERS BY REFINERS SEVERAL MAJOR REFINERS REDUCED THEIR FIELD POSTINGS YESTERDAY FOR WEST TEXAS INTERMEDIATE THE BENCHMARK US CRUDE BY 50 CENTS A BARREL AT THE CLOSE OF TRADING ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR DECEMBER DELIVERY HAD SETTLED 56 CENTS A BARREL LOWER AT 1751 THE JANUARY CRUDE CONTRACT WAS DOWN 51 CENTS TO 1771 FUELS FUTURES PACED BY GASOLINE ALSO PLUNGED IN THE US UNLEADED GASOLINE FOR NOVEMBER DELIVERY SETTLED 121 CENTS A GALLON LOWER AT 4838 CENTS HEATING OIL FUTURES WERE DOWN MORE THAN ONE CENT A GALLON IN HEAVY TRADING ONCE THE SLIDE BEGAN IN NEW YORK LONDON FUTURES ALSO BEGAN FALLING ACCORDING TO THE DOW JONES INTERNATIONAL PETROLEUM REPORT NOVEMBER GASOIL OR HEATING OIL CLOSED 475 A TON LOWER ON THE INTERNATIONAL PETROLEUM EXCHANGE BUT SOME DON'T EXPECT OIL PRICES TO GO ANY LOWER WE ARE VERY CLOSE TO THE BOTTOM SAID MR BEUTEL OF BRODY WHITE & CO IN OTHER COMMODITY MARKETS YESTERDAY LUMBER LUMBER FUTURES PRICES CONTINUED TO SOAR AT THE CHICAGO MERCANTILE EXCHANGE AS WHOLESALERS SCRAMBLED TO BUY WOOD TO MEET UNEXPECTEDLY STRONG DEMAND FROM THE CONSTRUCTION INDUSTRY SINCE OCT 4 THE PRICE OF THE NOVEMBER LUMBER FUTURES CONTRACT HAS CLIMBED MORE THAN 23 TO 36310 PER THOUSAND BOARD FEET FROM 29450 THE RALLY THOUGH STRONG DOESN'T COME CLOSE TO THE RUNUP IN LUMBER PRICES EARLY THIS YEAR WHEN PRICES PEAKED AT 49350 PER THOUSAND BOARD FEET ANALYSTS SAID STRENGTH IN THE CASH MARKET FOR LUMBER HAS BEEN LEADING FUTURES PRICES HIGHER DEMAND HAS BEEN STRONG BOTH FOR SOUTHERN PINE AND WESTERN LUMBER APPARENTLY BECAUSE GOOD WEATHER HAS SPURRED ACTIVITY BY THE US HOUSING INDUSTRY SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH AT THE CHICAGO MERC YESTERDAY LUMBER FOR NOVEMBER DELIVERY WAS UP THE DAILY PRICEMOVEMENT LIMIT OF 15 TO 36310 PER THOUSAND BOARD FEET GRAINS AND SOYBEANS GRAIN FUTURES PRICES ROSE ON EXPECTATIONS THAT THE US AGRICULTURE DEPARTMENT WILL REDUCE ITS ESTIMATE OF THIS YEAR'S CORN CROP IN ITS NEXT CROP REPORT AT THE CHICAGO BOARD OF TRADE CORN FOR DECEMBER DELIVERY WAS UP 3 CENTS TO 25625 A BUSHEL WHILE THE ACTIVELY TRADED NOVEMBER SOYBEAN CONTRACT CLIMBED 16 CENTS TO 6225 A BUSHEL ANALYSTS SAID DISASTROUS HARVEST RESULTS IN IOWA AND MINNESOTA WILL ALMOST CERTAINLY PROMPT THE USDA TO REDUCE ITS CORNCROP ESTIMATE AND POSSIBLY TO LOWER ITS ESTIMATE OF HARVESTED ACREAGE OF CORN UNLIKE SOYBEANS CORN WON'T GET ANY REPRIEVE FROM IMPROVEMENTS IN THE SOUTHEASTERN UNITED STATES AND THE DELTA REGIONS SAID RICHARD LOEWY PRESIDENT OF AGRESOURCE CO CHICAGO THE NEXT USDA REPORT WILL BE RELEASED ON NOV 9 9310260054 931026 AMERICAN EXPRESS POSTS RECORD PROFIT OF 420 MILLION FOR ITS THIRD QUARTER BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN EXPRESS CO REPORTED RECORD THIRDQUARTER EARNINGS OF 420 MILLION OR 83 CENTS A SHARE AIDED BY STRONGER CHARGECARD BUSINESS AND BETTER RESULTS FROM ITS SECURITIES ACTIVITIES THE EARNINGS WHICH COMPARE WITH A YEAREARLIER LOSS OF 205 MILLION OR 45 CENTS A SHARE TOPPED WALL STREET EXPECTATIONS OF ABOUT 72 CENTS A SHARE HOWEVER THE LATEST QUARTER BENEFITED FROM 229 MILLION IN TAX BENEFITS AND RESULTS IN THE YEARAGO QUARTER WERE DEPRESSED BY 342 MILLION IN RESTRUCTURING CHARGES FOR LAYOFFS THE EARNINGS WERE ANNOUNCED LATE YESTERDAY AFTERNOON IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AMERICAN EXPRESS CLOSED AT 34 DOWN 375 CENTS DESPITE A 27 SLIDE IN REVENUE AND A SIMILAR DECLINE IN THE NUMBER OF CARDS OUTSTANDING THE COMPANY'S FLAGSHIP TRAVEL RELATED SERVICES DIVISION POSTED EARNINGS OF 236 MILLION AGAINST A YEAREARLIER LOSS OF 187 MILLION TOTAL EXPENSES FELL 243 DRIVEN BY A SHARP DROP IN CREDIT COSTS AND A DECLINE IN OPERATING EXPENSES DUE TO COSTCUTTING MEASURES THE COMPANY HAS EMBARKED ON A REENGINEERING PLAN TO REDUCE COSTS BY 1 BILLION THEY'RE WORKING REAL HARD TO MANAGE THE COSTS SAID JOHN KEEFE AN INDEPENDENT SECURITIES ANALYST ONE OF THE TENETS OF REENGINEERING IS TO ADJUST THE COMPANY FOR AN ENVIRONMENT OF LOWER REVENUES THE COMPANY'S STRATEGY OF LOWERING THE FEES THAT MERCHANT'S PAY HAS HELPED TOTAL BILLINGS BUT REVENUE FROM MERCHANTS SLID 24 TO 897 MILLION IN THE QUARTER THE NUMBER OF TOTAL CARDS OUTSTANDING ALSO DECLINED REFLECTING MORE SELECTIVE MARKETING AS WELL AS COMPETITION FROM THE CREDIT CARD INDUSTRY BUT THE NUMBER OF CORPORATE CARDS CONTINUED TO GROW AMERICAN EXPRESS'S LEHMAN BROTHERS INVESTMENT BANKING UNIT IN ITS FIRST PARTIAL QUARTER OF OPERATION SINCE ITS SPLIT FROM SHEARSON REPORTED NET INCOME OF 114 MILLION ON JULY 30 SHEARSON MERGED WITH PRIMERICA CORP'S SMITH BARNEY HARRIS UPHAM & CO BROKERAGE UNIT LEHMAN'S REVENUE ROSE 21 IN THE THIRD QUARTER TO 227 BILLION JUST A SHADE BELOW THE REVENUE GENERATED BY THE TRAVEL RELATED SERVICES DIVISION IN THE YEAREARLIER QUARTER THE SHEARSON LEHMAN UNIT REPORTED A 25 MILLION LOSS LEHMAN BROTHERS SAID ITS PORTION OF THAT TOTAL WAS ACTUALLY A LOSS OF 52 MILLION RELATED TO A CHARGE THE FIRM TOOK ON HOLDINGS OF COMPUTERVISION CORP STOCK WHICH FELL SHARPLY LAST YEAR LEHMAN'S REVENUE FROM PRINCIPAL TRADING OR TRADING USING THE FIRM'S OWN MONEY JUMPED 78 TO 421 MILLION FROM THE YEAREARLIER QUARTER INVESTMENT BANKING INCOME ROSE 35 TO 186 MILLION ALTHOUGH THAT WAS DOWN FROM THIS YEAR'S SECONDQUARTER TOTAL OF 208 MILLION IDS FINANCIAL SERVICES EARNED 96 MILLION UP 20 FROM THE YEAREARLIER RESULTS OF 80 MILLION THE MINNEAPOLISBASED MONEY MANAGEMENT UNIT CONTINUES TO CHURN OUT DOUBLEDIGIT EARNINGS GROWTH FUELED BY AN INCREASE IN MANAGEMENT FEES AND NET INVESTMENT INCOME AMERICAN EXPRESS BANK EARNED 27 MILLION COMPARED WITH A LOSS OF 30 MILLION A YEAR EARLIER ALEXANDRA PEERS CONTRIBUTED TO THIS ARTICLE 9310260053 931026 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN WORKPLACE PRIVACY BECOMES A HOT ISSUE FOR CONGRESS BUSINESS AND WORKERS SEN PAUL SIMON'S BILL WOULD FORCE COMPANIES TO ALERT STAFFERS IN ADVANCE IF THEY REGULARLY MONITOR ELECTRONICMAIL MESSAGES OR COMPUTER KEYSTROKES AND TO DISCLOSE AFTER THE FACT IF THEY ENTERED A WORKER'S COMPUTER HARD DRIVE TO STOP THE TARGETING OF EMPLOYEES THE BILL WOULD PLACE LIMITS ON HOW MANY TIMES A WORKER COULD BE MONITORED THE WHITE HOUSE BACKS THE IDEA BUT WORRIES ABOUT OVERREACHING BUSINESS GROUPS SPLIT ON HOW TO HANDLE THE BILL STAUNCH OPPONENTS WHO SEE MONITORING AS A MUST REFUSE TO DEBATE THE MATTER HOPING NOT TO HELP THE BILL IN CONGRESS MORE MODERATE GROUPS BACK MAKING RESTROOMS AND LOCKER ROOMS PRIVACY ZONES BUT WORRY THE BILL IS TOO SWEEPING THIS LEGISLATION CREATES A DOCTRINE THAT EMPLOYEES WHO WORK ON EQUIPMENT OWN THE DATA SAYS LAWRENCE FINERAN OF THE NATIONAL ASSOCIATION OF MANUFACTURERS AFTER SEN SIMON APPEARS ON DONAHUE A WOMAN CALLS HIM TO COMPLAIN THAT DESPITE PUNCHING A TIME CLOCK SHE IS DOCKED IF SHE DOESN'T TYPE 11000 KEYSTROKES AN HOUR ON HER COMPUTER THE WHITE HOUSE TRIES TO PLACATE BUSINESS OVER THE NLRB FACING SKIRMISHES OVER CHAIRMANDESIGNATE WILLIAM GOULD IV THE ADMINISTRATION HOPES TO SHOW THAT ITS FULL SLATE FOR THE LABOR BOARD IS BALANCED ERIC SCHMERTZ FORMER HOFSTRA UNIVERSITY LAW SCHOOL DEAN EMERGES AS THE FRONTRUNNER FOR THE PANEL'S REPUBLICAN SLOT BUSINESS GROUPS GRUMBLE ABOUT MR SCHMERTZ'S RECENT APPOINTMENT TO A PANEL BY DEMOCRATIC NEW YORK MAYOR DAVID DINKINS THE NOMINATION OF MR GOULD WHOSE PROUNION WRITINGS ANGER BUSINESS WAS APPROVED BY THE SENATE LABOR COMMITTEE WITH ONLY DEMOCRATIC SUPPORT FIVE REPUBLICANS VOTED AGAINST THE STANFORD LAW PROFESSOR SOME GOPERS THREATEN LENGTHY DEBATE ON THE SENATE FLOOR WITH CONGRESS FACING A LATE NOVEMBER RECESS DEMOCRATS MAY BE WARY ABOUT BRINGING HIS NAME TO A FLOOR VOTE RETAILERS START ADDING HOLIDAY STAFF BUT THE HIRING OUTLOOK IS MIXED BOMBAY CO PLANS TO BOOST ITS 3000PERSON WORK FORCE BY 50 TO 60 WE'RE REASONABLY OPTIMISTIC THAT THIS COULD BE A GOOD HOLIDAY SEASON SAYS JIM HERLIHY OF THE HOME FURNISHER DISCOUNTER DOLLAR GENERAL ALSO FORESEES A STRONG SEASON AND ADDS 10 TO STAFFS AT ITS KENTUCKY AND GEORGIA DISTRIBUTION CENTERS CHARMING SHOPPES MAY BRING IN A FEW MORE WORKERS TO SUPPLEMENT EXTRA HOURS FOR PARTTIMERS BUT OPTIMISM ISN'T UNIVERSAL LIMITED INC SEES HOLIDAY STAFFING ABOUT THE SAME AS LAST YEAR'S RICH'S AN ATLANTABASED RETAILER ALSO IS CAUTIOUS IT WILL ADD 2300 SEASONAL WORKERS AT ITS 24 SOUTHEASTERN STORES ABOUT THE SAME AS LAST YEAR PARISIAN WILL RELY ALMOST ENTIRELY ON EXTRA HOURS FOR ITS CURRENT WORK FORCE WORKERS AREN'T HARD TO FIND WE ALWAYS HAVE A TON OF PEOPLE APPLYING FOR THE JOBS SAYS R DON MORRIS OF MICHAELS STORES AN ARTS AND CRAFTS RETAILER STEP TWO NEARLY HALF OF ALL UNEMPLOYED EXECUTIVES EXPECT A SALARY CUT IN THEIR NEXT JOBS ACCORDING TO A LOOK AT 415 EXMANAGERS BY LEE HECHT HARRISON A NEW YORKBASED FIRM MORE THAN A QUARTER EXPECT THE CUT TO BE MORE THAN 15 THE BRIGHT SIDE JOBS AT SMALL COMPANIES WHERE MANY EXECUTIVES FIND NEW WORK OFTEN OFFER MORE STOCK AND BONUSES UP IN SMOKE MORE THAN 2000 WORKERS FIRED FROM RJR NABISCO AFTER ITS 1989 LBO PROVIDE AN EVEN BLEAKER LOOK AT CORPORATE CUTS WHILE 72 FOUND NEW WORK THEIR PAY AVERAGED 47 OF EARLIER WAGES A STUDY BY WAYNE LANDSMAN AND DOUGLAS SHACKELFORD OF THE UNIVERSITY OF NORTH CAROLINA BUSINESS SCHOOL SHOWS WOMEN GOT A LOWER PERCENTAGE OF PRIOR WAGES THAN MEN DID FIXING THE NLRB ARGUING THE PANEL WOULD MAKE QUICKER DECISIONS WITH THREE MEMBERS RATHER THAN FIVE DEPARTING BOARD MEMBER JOHN RAUDABAUGH BACKS RETURNING IT TO ITS PRE1947 SIZE HE ESTIMATES HE HAS BEEN INVOLVED IN ONLY 45 SPLIT DECISIONS IN 3000 CASES IN THREE YEARS WITH THE REST BEING UNANIMOUS AND OFTEN NOBRAINERS WORKERS' COMP CLINTONITES AND COMPANIES SCRAMBLE TO CUT COSTS THE WHITE HOUSE HEALTHCARE PLAN STOPS SHORT OF MERGING WORKERS' COMPENSATION INTO THE REST OF THE HEALTHCARE SYSTEM LEAVING FINANCING SEPARATE BUT CLINTON AIDES CONTEND THAT FORCING INJURED WORKERS TO SEE THE SAME DOCTORS AS THEY WOULD WITH NONWORKPLACE INJURIES WILL SAVE MONEY DOCTORS WHO SPECIALIZE IN WORKERS' COMPENSATION INJURIES WON'T BE COSTCOMPETITIVE ARGUES WALTER ZELMAN SENIOR HEALTH ADVISER FOR THE WHITE HOUSE MEANWHILE SOUTHWEST AIRLINES CUTS ITS AVERAGE CLAIM COST BY 500 TO 3800 HUGHES AIRCRAFT CREDITS FAST TREATMENTS AS WELL AS PUTTING A DOCTOR IN CHARGE OF WORKERINJURY PROGRAMS FOR ITS 16 DROP IN PERCLAIM COSTS FROM A YEAR AGO BUT NORTHROP SEES BOTH COSTS AND CLAIMS RISE 10 IT SAYS INJURIES RISE AS FEWER WORKERS ARE FORCE TO DO MORE UNDER THE CLINTON PLAN AN EMPLOYER OR INSURER WHO WANTS WORKERS TO RECEIVE EXTRA TREATMENT IN ORDER TO GET SOMEONE BACK TO WORK FASTER WOULD HAVE TO PAY FOR THAT MR ZELMAN SAYS THE CHECKOFF RESTAURANTS HAVE STARTED GIVING PAGERS TO CUSTOMERS TO ALERT THEM WHEN THEIR TABLES ARE READY SAYS TERRY SCOTT OF PAGING NETWORK INC THE HIGHEST PERCENTAGE OF COMPLAINTS UNDER THE AMERICANS WITH DISABILITIES ACT COME IN WASHINGTON DC AND NEW MEXICO THE BUREAU OF NATIONAL AFFAIRS SAYS 9310260052 931026 BUSINESS BRIEF CALIFORNIA FEDERAL BANK LOSS WIDENED TO 568 MILLION DURING LATEST THIRD PERIOD CALIFORNIA FEDERAL BANK CONTINUING TO STRUGGLE TO PROVE IT IS A VIABLE BANK POSTED A WIDER THIRDQUARTER NET LOSS THE BANK REPORTED A NET LOSS OF 568 MILLION OR 235 A SHARE COMPARED WITH A YEAREARLIER NET LOSS OF 422 MILLION OR 822 A SHARE WHEN ADJUSTED FOR A 1FOR5 REVERSE STOCK SPLIT LAST FEBRUARY THE QUARTER'S RESULTS INCLUDED INCREASED PROVISIONS FOR LOAN LOSSES FOR THE PREVIOUSLY ANNOUNCED PLAN TO SELL SOME NONPERFORMING LOANS IN DECEMBER THE BANK'S PROVISION FOR LOAN LOSSES WAS 728 MILLION FOR THE QUARTER COMPARED WITH 318 MILLION FOR THE 1992 THIRD QUARTER THE LOS ANGELES BANK SAID IT SOLD 1246 MILLION OF FORECLOSED PROPERTY DURING THE THIRD QUARTER BUT NONPERFORMING ASSETS DECLINED ONLY 233 MILLION TO 116 BILLION OR 74 OF ASSETS AT QUARTER'S END THAT COMPARED WITH 118 BILLION OR 745 OF ASSETS AT THE END OF THE SECOND QUARTER 9310260051 931026 BUSINESS BRIEF CINCINNATI BELL INC THIRDQUARTER NET ROSE 45 ON STRONG SALES IN 2 UNITS CINCINNATI BELL INC REPORTED A 45 INCREASE IN THIRDQUARTER NET INCOME REFLECTING STRONG SALES IN ITS INFORMATION SYSTEMS AND TELEMARKETING UNITS NET WAS 156 MILLION OR 24 CENTS A SHARE COMPARED WITH THE YEAREARLIER 108 MILLION OR 16 CENTS A SHARE WHICH INCLUDED AN 17 MILLION EXTRAORDINARY FOR EARLY REDEMPTION OF DEBT REVENUE ROSE 4 TO 2892 MILLION FROM 2779 MILLION CINCINNATI BELL SHARES WERE UNCHANGED AT 250 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9310260050 931026 WHAT'S NEWS BUSINESS AND FINANCE GENERAL MOTORS PLANS TO TAKE A 950 MILLION CHARGE AGAINST THIRDQUARTER EARNINGS TO REFLECT HIGHERTHANANTICIPATED COSTS FOR PLANT CLOSINGS AND LAYOFFS THE CHARGE'S ANNOUNCEMENT CAME AFTER THE CLOSE OF MARKETS WHERE GM'S STOCK FELL 125 TO 4475 IN RESPONSE TO A TENTATIVE AGREEMENT WITH THE UAW S&P CHANGED ITS OUTLOOK FOR GM TO NEGATIVE FROM STABLE CITING THE CONTRACT AS WELL AS GM'S UNFUNDED PENSION LIABILITY SALES OF NORTH AMERICANBUILT VEHICLES SURGED IN MIDOCTOBER REACHING THE FASTEST PACE IN 18 MONTHS AS CONSUMERS HEADED TO SHOWROOMS TO TAKE ADVANTAGE OF FAVORABLE INTEREST RATES AND BETTER INVENTORY OF 1994 MODELS THE DOW JONES INDUSTRIALS SET A RECORD CLIMBING 2431 TO 367361 AMID CONTINUED GOOD EARNINGS AND FURTHER SIGNS OF AN IMPROVING ECONOMY BOND PRICES SLUMPED AND THE DOLLAR ROSE SALES OF EXISTING HOMES GREW A STEADY 26 IN SEPTEMBER FROM THE PREVIOUS MONTH AS PENTUP DEMAND AND LOW INTEREST RATES CONTINUED TO POWER A NATIONAL HOUSING RECOVERY SURGICAL CARE AFFILIATES PROPOSED TO BUY MEDICAL CARE FOR NEARLY 1 BILLION IN A STOCK SWAP BUT MEDICAL CARE SO FAR DOESN'T SEEM INTERESTED IN LINKING THE TWO OUTPATIENT SURGERY FIRMS MEDICAL CARE'S STOCK ROSE 5625 OR 30 TO 24625 WHILE SURGICAL CARE'S FELL 875 CENTS OR 44 TO 19 VIACOM LAUNCHED ITS TENDER OFFER FOR PARAMOUNT VALUED AT 99 BILLION GAINING A POTENTIALLY IMPORTANT TIME ADVANTAGE OVER QVC NETWORK AMERICAN EXPRESS REPORTED RECORD EARNINGS OF 420 MILLION FOR THE THIRD QUARTER AIDED BY BETTER RESULTS IN ITS CHARGECARD BUSINESS AND STRONGER RESULTS IN ITS SECURITIES ACTIVITIES ATLANTIC RICHFIELD POSTED SHARPLY LOWER THIRDQUARTER PROFIT AND SAID IT PLANS TO CLOSE ITS DALLAS OFFICE AS PART OF A REORGANIZATION OF DOMESTIC OIL AND GAS OPERATIONS OUTSIDE OF ALASKA THE REORGANIZATION WILL RESULT IN A SUBSTANTIAL FOURTHQUARTER CHARGE ARCO SAID EXXON ASHLAND AND UNOCAL POSTED STRONG PROFITS FOR THE LATEST PERIOD LARGELY DUE TO ROBUST GASOLINE SALES BUT AMERADA HESS SWUNG TO A LOSS THE WHITE HOUSE INCREASED THE NUMBER OF SMALL BUSINESSES THAT WOULD BE ELIGIBLE FOR GOVERNMENT SUBSIDIES UNDER ITS HEALTHCARE PLAN NATIONAL HEALTH LABS IS REMOVING TWO TESTS FROM ITS BASIC MEDICALTEST PACKAGE AFTER MEDICARE REFUSED TO PAY FOR THEM AMID A CLAMPDOWN ON COSTS BOEING'S PROFIT PLUNGED 45 IN THE THIRD QUARTER REFLECTING FEWER DELIVERIES OF JETS GRUMMAN'S NET SURGED 47 REFLECTING AN IMPROVED PROFIT MARGIN AND LOWER INTEREST COSTS US HEALTHCARE'S EARNINGS SOARED 63 IN THE THIRD QUARTER ON THE STRENGTH OF LOWER COSTS AND INCREASED ENROLLMENT IN ITS HEALTH PLANS GENERAL MILLS NAMED STEPHEN SANGER PRESIDENT OF THE PACKAGED FOOD AND RESTAURANT CONCERN MAKING HIM THE CLEAR FAVORITE TO BECOME ITS NEXT CHAIRMAN AND CHIEF EXECUTIVE FRANCE UNDERMINED ITS COMMITMENT TO RESTORE THE COUNTRY'S STATEOWNED COMPANIES TO FINANCIAL HEALTH AGREEING TO OVERRIDE AIR FRANCE'S PLAN TO CUT 4000 JOBS THAT LED TO A STRIKE INDONESIA RELAXED RESTRICTIONS ON FOREIGN OWNERSHIP OF NEW MANUFACTURING OPERATIONS IN THE COUNTRY BONDS LEHMAN BROTHERS TREASURY INDEX 563581 OFF 1242 COMMODITIES OIL 1751 A BARREL DOWN 56 CENTS DOW JONES FUTURES INDEX 13028 UP 043 SPOT INDEX 11922 OFF 082 DOLLAR 10858 YEN UP 050 16860 MARKS UP 00110 9310260049 931026 BUSINESS BRIEF AIRBORNE FREIGHT CORP AIREXPRESS FIRM SAYS PROFIT ROSE SHARPLY IN 3RD QUARTER AIRBORNE FREIGHT CORP REPORTED A SHARP INCREASE IN THIRDQUARTER PROFIT CITING STRONG REVENUE GROWTH LOWER OPERATING COSTS AND THE IMPROVING ECONOMY THE SEATTLE AIREXPRESS CONCERN SAID NET INCOME LEAPED TO 104 MILLION OR 53 CENTS A SHARE FROM 14 MILLION OR SEVEN CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO 4342 MILLION FROM 3716 MILLION AIRBORNE SAID DOMESTIC SHIPMENTS IN THE QUARTER ROSE TO 406 MILLION FROM 33 MILLION THE COMPANY ALSO SAID IT LOWERED ITS OPERATING COST PER SHIPMENT BY 84 IN THE YEAREARLIER QUARTER AIRBORNE WAS FACED WITH A SLUGGISH ECONOMY AND WAS IN THE MIDST OF A SEVERE PRICE WAR AIRBORNE ROSE 3 OR 11 TO 3025 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9310260048 931026 CORPORATE FOCUS COSTCUTTER FACES TOUGHER TASK AT SOUTHERN PACIFIC CEO MOYERS IS TRYING TO MATCH HIS SUCCESS IN REVIVING ILLINOIS CENTRAL BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL EDWARD L MOYERS WHO REJUVENATED ILLINOIS CENTRAL CORP THROUGH AGGRESSIVE COST CUTTING IS TRYING TO DO THE SAME FOR SOUTHERN PACIFIC RAIL CORP SOUTHERN PACIFIC NEEDS IT FOR MUCH OF THE PAST DECADE THE NATION'S SIXTHLARGEST RAILROAD HAS OFFERED ERRATIC SERVICE AND HAS BEEN MIRED IN BUREAUCRATIC GRIDLOCK AND FINANCIAL LOSSES ONLY SALES OF REAL ESTATE AND EXCESS TRACK IN RECENT YEARS HAVE ENABLED THE COMPANY TO MEET DEBT PAYMENTS AND KEEP FREIGHT TRAINS MOVING RAIL OPERATIONS HAD A LOSS OF 142 MILLION LAST YEAR THOUGH THE COMPANY POSTED A PROFIT OF 331 MILLION OR 33 CENTS A SHARE AFTER REAL ESTATE SALES ON REVENUE OF 288 BILLION ON AN INSPECTION TRIP OVER A SOUTHERN PACIFIC ROUTE THROUGH TENNESSEE PASS IN THE COLORADO ROCKY MOUNTAINS THIS MONTH MR MOYERS FOUND MANY INEFFICIENCIES HE SAYS HE SAW EXCESS TRACK AND WAS STRUCK BY THE STEEP GRADES THAT FREIGHT TRAINS MUST CLIMB AT 10000 FEET ABOVE SEA LEVEL SOUTHERN PACIFIC HAS AN ALTERNATE ROUTE TO THE NORTH THAT DOESN'T REQUIRE AS STEEP A CLIMB IT TAKES A TREMENDOUS AMOUNT OF HORSEPOWER TO MOVE COAL TRAINS OVER THE TENNESSEE PASS HE SAYS IT WILL ALSO TAKE A LOT OF HAULING AND HEAVING TO ENERGIZE THE COMPANY THE 65YEAROLD MR MOYERS WHO JOINED SOUTHERN PACIFIC AS CHIEF EXECUTIVE OFFICER IN JULY RECENTLY ANNOUNCED THAT HE WILL ACCELERATE JOB CUTS REDUCING THE WORK FORCE TO 18000 FROM 22000 BY THE END OF 1994 AND MANAGEMENT HASN'T BEEN IMMUNE TO CUTBACKS SINCE TAKING OVER MR MOYERS HAS ANNOUNCED THE DEPARTURE OF D MICHAEL MOHAN THE RAILROAD'S PRESIDENT AND CUT THE RANKS OF VICE PRESIDENTS TO 20 FROM 26 MORE WILL BE GOING HE SAYS HE CUT DOWN ON EXECUTIVE TRAVEL TO CONVENTIONS EXECUTIVE CARS AND EXECUTIVE TRANSFERS AND HE SLASHED THE BUDGET FOR OUTSIDE CONSULTANTS TO 15 BILLION A YEAR FROM 14 MILLION IF WE NEED CONSULTANTS TO TELL US HOW TO DO OUR JOB ON A DAILY BASIS THE COMPANY OUGHT TO GET RID OF US AND HIRE THE CONSULTANTS HE SAYS ALL THE WHILE MR MOYERS HAS SOUGHT TO INFUSE A SENSE OF URGENCY INVESTORS APPARENTLY BELIEVE IN MR MOYERS WHO WAS BROUGHT IN AFTER A PLANNED INITIAL PUBLIC OFFERING OF SOUTHERN PACIFIC SHARES MET LUKEWARM INVESTOR INTEREST HIS ARRIVAL ALONG WITH A LOWERING OF THE OFFERING PRICES HELPED TO REVIVE THE STOCK OFFERING AND A SIMULTANEOUS DEBT OFFERING WHICH TOGETHER RAISED 780 MILLION IN AUGUST ANALYSTS SAY PHILIP ANSCHUTZ THE DENVER BILLIONAIRE WHO TOOK SOUTHERN PACIFIC PRIVATE IN A LEVERAGED BUYOUT FIVE YEARS AGO WAS UNDER PRESSURE FROM INVESTORS TO INSTALL A PROVEN RAILROADER TO ACCELERATE A SOUTHERN PACIFIC TURNAROUND FOR HIS PART MR ANSCHUTZ SAYS WHAT WE WERE DOING WERE THE RIGHT THINGS BUT I FELT THEY WEREN'T BEING DONE FAST ENOUGH MR ANSCHUTZ REMAINS CHAIRMAN AND MAJORITY HOLDER WITH A 519 STAKE AFTER THE PUBLIC OFFERING METICULOUS AND MISSISSIPPIBORN MR MOYERS COMES ACROSS AS A POLITE SOUTHERN GENTLEMAN IN CONTRAST TO HIS REPUTATION AS AN INTENSE DICTATORIAL HATCHETWIELDER HIRED OUT OF A BRIEF RETIREMENT AFTER HEART BYPASS SURGERY IN FEBRUARY MR MOYERS SAYS HE FEELS UP TO THE CHALLENGE AT SOUTHERN PACIFIC IN ADDITION TO AN ANNUAL SALARY OF 600000 HE STANDS TO RECEIVE AS MANY AS 850000 SHARES OF SOUTHERN PACIFIC STOCK IF HE HITS CERTAIN PERFORMANCE IMPROVEMENT TARGETS BETWEEN NOW AND THE END OF 1996 IF HE IS ABLE TO ACCOMPLISH EVEN HALF AS MUCH AT SOUTHERN PACIFIC AS HE DID AT ILLINOIS CENTRAL SAYS THOMAS GALVIN AN ANALYST AT CJ LAWRENCE INC HE WILL GO DOWN IN RAILROAD HISTORY AS ONE OF THE GREAT TURNAROUND MANAGERS OF POORLY RUN FRANCHISES AS ITS CHIEF EXECUTIVE FROM 1989 TO FEBRUARY 1993 MR MOYERS TURNED ILLINOIS CENTRAL INTO ONE OF THE NATION'S MOST EFFICIENT RAILROADS IN ONE BOLD COSTCUTTING STROKE FOR EXAMPLE HE CONVERTED ABOUT 500 MILES OF THE RAILROAD'S CHICAGONEW ORLEANS MAINLINE TO SINGLE TRACK FROM DOUBLE TRACK WHILE INSTALLING LONG PASSING TRACKS AND A NEW TRAIN CONTROL SYSTEM NET INCOME AT ILLINOIS CENTRAL ROSE TO 959 MILLION IN 1992 FROM 97 MILLION IN 1989 AND THE STOCK PRICE QUADRUPLED DURING MR MOYERS'S TENURE SKEPTICS HOWEVER BELIEVE THAT SOUTHERN PACIFIC MAY BE TOUGHER TO CHANGE IT IS A LOT BIGGER COMPANY WITH A LOT MORE PROBLEMS AND IN A LOT WORSE SHAPE THAN ILLINOIS CENTRAL WAS WHEN HE TOOK THAT OVER SAYS BURTON STRAUSS JR AN ANALYST AT LEHMAN BROTHERS INC WHILE MUCH OF SOUTHERN PACIFIC'S MAINLINE TRACK HAS BEEN REBUILT IN RECENT YEARS ITS LOCOMOTIVE FLEET REMAINS OLD FAILUREPRONE AND POORLY MAINTAINED TOM POWER CHIEF FINANCIAL OFFICER OF WISCONSIN CENTRAL LTD SAYS HE LEASED SEVERAL LOCOMOTIVES TO SOUTHERN PACIFIC WHEN THEY CAME BACK THEY WERE AN ABSOLUTE WRECK HE SAYS WINDOWS WERE BROKEN THEY DIDN'T CHANGE THE FILTERS AND THEY BLEW PISTONS THEY RAN THEM TILL THEY STOPPED SHORT OF RELIABLE LOCOMOTIVES SOUTHERN PACIFIC'S FREIGHT SERVICE JUST SORT OF SUNK INTO THE SEWER SAYS DEL MOBLEY TRAFFIC MANAGER OF ROSEBURG FOREST PRODUCTS CO IN ROSEBURG ORE UNITED PARCEL SERVICE RECENTLY REROUTED PACKAGE SHIPMENTS BETWEEN MEMPHIS AND LOS ANGELES TO RIVAL SANTA FE PACIFIC CORP BECAUSE SOUTHERN PACIFIC FAILED TO MEET PERFORMANCE STANDARDS FOR ONTIME DELIVERY NOW MR MOYERS IS WADING IN TO CLEAN UP THE MESS HE RECENTLY SHIFTED CAPITAL FROM TRACK TO LOCOMOTIVE MAINTENANCE AND REPLACED SOUTHERN PACIFIC'S CHIEF MECHANICAL OFFICER THE NEW HOLDER OF THE JOB HENRY CHIDGEY WORKED FOR MR MOYERS AT ILLINOIS CENTRAL MR CHIDGEY SAYS HE IS BOOSTING THE NUMBER AND EXTENT OF LOCOMOTIVE OVERHAULS WITH THE GOAL OF MAKING MORE UNITS AVAILABLE FOR SERVICE MEANWHILE MR MOYERS IS TRYING TO CATCH UP WITH RIVALS SANTA FE AND UNION PACIFIC CORP WHICH MOVED SOONER TO CUT EXCESS TRACK AND EMPLOYEES WE HAD AT LEAST 4000 MORE EMPLOYEES THAN THE OTHER WESTERN RAILROADS FOR A GIVEN AMOUNT OF FREIGHT TRAFFIC SAYS MR MOYERS MR MOYERS ALSO HAS ACCELERATED DISCUSSIONS WITH OTHER RAILROADS ABOUT SHARING TRACK TO CUT OVERHEAD AND SPEED SHIPMENTS FOR EXAMPLE HE IS TALKING ABOUT SHIFTING SOME SOUTHERN PACIFIC TRAINS TO A SHORTER UNDERUSED UNION PACIFIC LINE BETWEEN EL PASO AND FORT WORTH TEXAS AND HE IS TRYING TO INTEREST ILLINOIS CENTRAL IN OPENING UP ITS MAINLINE TO SOUTHERN PACIFIC TRAINS BETWEEN MEMPHIS AND CHICAGO THAT WOULD ALLOW SOUTHERN PACIFIC TO DISPOSE OF TRACK IN ILLINOIS SOME RAILROAD ANALYSTS AND CONSULTANTS EXPECT MR MOYERS TO RADICALLY RESTRUCTURE SOUTHERN PACIFIC'S 15000MILE 15STATE SYSTEM OF THE RAILROAD'S TWO MAJOR EASTWEST ROUTES BETWEEN THE WEST COAST AND MIDWEST THE SOUTHERN CORRIDOR IS THE MORE EFFICIENT THE CENTRAL CORRIDOR BY CONTRAST GOES OVER THREE MOUNTAIN RANGES INCLUDING TORTUOUS TENNESSEE PASS AND CARRIES FAR LESS FREIGHT TRAFFIC MR MOYERS SAYS I'M QUESTIONING THE PROFITABILITY AND COST OF OPERATING THE CENTRAL CORRIDOR BUT WE ARE EXAMINING THE OTHER ROUTES TOO 9310260047 931026 BUSINESS BRIEF AMTECH CORP NET FELL 19 IN 3RD PERIOD INCREASE IN TAX BILL IS CITED AMTECH CORP SAID NET INCOME FELL 19 IN THE THIRD QUARTER FOLLOWING AN ACCOUNTING CHANGE THAT SHARPLY RAISED THE COMPANY'S TAX BILL THE DALLASBASED MAKER OF AUTOMATIC VEHICLEIDENTIFICATION SYSTEMS REPORTED NET OF 27 MILLION OR 18 CENTS A SHARE DOWN FROM 34 MILLION OR 23 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 25 TO 157 MILLION FROM 125 MILLION DESPITE THE DROP THE RESULTS WERE ABOUT TWO CENTS A SHARE ABOVE MOST ANALYSTS' ESTIMATES IN NATIONAL OVERTHECOUNTER TRADING AMTECH'S STOCK FELL 50 CENTS OR 17 TO CLOSE AT 2825 A SHARE THE COMPANY SAID ITS RESULTS REFLECTED AN ACCOUNTING CHANGE THAT RAISED ITS TAXES TO 931000 IN THE QUARTER FROM 70000 A YEAR EARLIER PROFIT BEFORE TAXES WAS 37 MILLION COMPARED WITH 34 MILLION A YEAR EARLIER 9310260046 931026 BUSINESS BRIEF PHILADELPHIA ELECTRIC CO HEAT WAVE HELPED TO BOOST 3RDQUARTER NET INCOME 28 PHILADELPHIA ELECTRIC CO REPORTED A 28 INCREASE IN NET INCOME FOR THE THIRD QUARTER LARGELY DUE TO INCREASED ELECTRICITY USE DURING A SUMMER HEAT WAVE FOR THE QUARTER THE GAS AND ELECTRIC UTILITY IN PHILADELPHIA REPORTED NET INCOME OF 1817 MILLION OR 77 CENTS A SHARE COMPARED WITH 1423 MILLION OR 59 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE INCREASED 77 TO 107 BILLION THE COMPANY ALSO INCREASED ITS QUARTERLY DIVIDEND THREE CENTS OR 86 TO 38 CENTS A SHARE THE DIVIDEND WILL BE PAID DEC 17 TO SHAREHOLDERS OF RECORD NOV 10 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING PHILADELPHIA ELECTRIC SHARES FELL 50 CENTS TO 31125 A SHARE THE COMPANY ALSO ANNOUNCED THAT IT SOLD 475 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS THROUGH COMPETITIVE BIDDING THE COMPANY SAID PROCEEDS FROM THE BOND SALES WILL BE USED TO REFINANCE EXISTING DEBT 9310260045 931026 SUGAR TRADING HOURS TO CHANGE NEW YORK THE COFFEE SUGAR & COCOA EXCHANGE HERE SAID IT WILL CHANGE THE TRADING HOURS OF SOME OF ITS SUGAR FUTURES AND OPTIONS CONTRACTS EFFECTIVE TODAY THE NEW HOURS WILL PROVIDE FOR A CLOSING PERIOD OF FIVE MINUTES IN THE EXCHANGE'S ACTIVELY TRADED WORLD SUGAR AND WHITE SUGAR FUTURES CONTRACTS THESE CONTRACTS WILL BEGIN THE CLOSING PERIOD AT 145 PM EASTERN TIME TRADING WILL CONCLUDE AT 150 PM SUGAR OPTIONS CONTRACTS WILL ALSO CEASE TRADING AT 150 PM DAILY ALL THE OPENING TRADING TIMES FOR THE EXCHANGE'S CONTRACTS WILL REMAIN THE SAME 9310260044 931026 BUSINESS BRIEF HARTFORD STEAM BOILER INSPECTION INSURER PLANS TO REDUCE STAFF BY 300 OR ABOUT 7 OF TOTAL HARTFORD STEAM BOILER INSPECTION & INSURANCE CO SAID IT WOULD REDUCE ITS STAFF BY 300 ABOUT 7 OF THE MACHINERYINSURANCE CONCERN'S TOTAL STAFF BY THE MIDDLE OF 1994 THE HARTFORD CONNBASED COMPANY TOOK A PRETAX CHARGE OF 20 MILLION IN ITS THIRD QUARTER STEMMING FROM THE PLANNED STAFF REDUCTIONS AND A RESTRUCTURING OF ITS INSURANCE AND ENGINEERING OPERATIONS HARTFORD STEAM POSTED A NET LOSS OF 226 MILLION OR 109 A SHARE FOR THE THIRD QUARTER COMPARED WITH NET INCOME OF 28 MILLION OR 14 CENTS A SHARE A YEAR EARLIER THIS IS A PERIOD OF SIGNIFICANT CHANGE IN THE COMPANY'S OPERATION ALL OF WHICH IS FOCUSED ON RENEWING THE GROWTH IN OUR LONGTERM EARNINGS SAID WILSON WILDE CHAIRMAN AND CHIEF EXECUTIVE OFFICER HE SAID THAT DECLINING PROFITABILITY IN HARTFORD STEAM'S INSURANCE OPERATIONS OVER THE LAST SEVERAL YEARS IS A RESULT OF SEVERE PRICE COMPETITION AND AN UNUSUAL NUMBER OF WEATHERRELATED EVENTS SUCH AS HURRICANES WINTER STORMS AND SUMMER FLOODS 9310260043 931026 BUSINESS BRIEF GRAND METROPOLITAN PLC BURGER KING UNIT EXPANDS TESTING OF MEATLESS BURGER BURGER KING CORP SAID IT IS EXPANDING TESTING OF A MEATLESS HAMBURGER IN WESTERN NEW YORK STATE THE SANDWICH WHICH FEATURES A GRILLED VEGETABLE COMBINATION REPLACES A FRIED KIDNEYBEANBASED PATTY TESTED EARLIER THIS YEAR AND WILL BE SOLD IN 39 RESTAURANTS THE NEW PATTY IS MADE BY WORTHINGTON FOODS INC WORTHINGTON OHIO AND MARKETED UNDER THE GRILLERS BRAND NAME WHICH BURGER KING SAID IT WILL USE BURGER KING IN MIAMI THE SECONDLARGEST US HAMBURGER CHAIN IS A UNIT OF GRAND METROPOLITAN PLC 9310260042 931026 BUSINESS BRIEF BLACK & DECKER CORP NET INCOME NEARLY DOUBLED DURING THE THIRD QUARTER BLACK & DECKER CORP TOWSON MD SAID NET INCOME FOR THE THIRD QUARTER NEARLY DOUBLED ON STRONG DOMESTIC SALES OF ITS POWER TOOLS ACCESSORIES AND LOCKS THE COMPANY SAID FOR THE QUARTER ENDED OCT 3 NET WAS 195 MILLION OR 20 CENTS A SHARE COMPARED WITH 99 MILLION OR EIGHT CENTS A SHARE A YEAR EARLIER REVENUE WAS FLAT AT 119 BILLION BLACK & DECKER SHARES CLOSED AT 1950 EACH UP 625 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FOR THE NINE MONTHS NET WAS 528 MILLION OR 53 CENTS A SHARE COMPARED WITH THE YEAREARLIER LOSS OF 2108 MILLION OR 297 A SHARE LAST YEAR'S RESULTS FOR THE QUARTER AND NINE MONTHS REFLECT A 238 MILLION CHARGE FOR THE ADOPTION OF NEW ACCOUNTING STANDARDS 9310260041 931026 BUSINESS BRIEF INLAND STEEL INDUSTRIES INC STEELMAKER SAYS COKE PLANT WILL BE CLOSED IN DECEMBER INLAND STEEL INDUSTRIES INC SAID IT WILL SHUT A COKE PLANT IN DECEMBER CUTTING 499 JOBS AND RESULTING IN A 20 MILLION PRETAX FOURTHQUARTER CHARGE THE JOB CUTS REPRESENT ABOUT 3 OF INLAND'S WORK FORCE WHICH TOTALS ABOUT 17000 WORKERS IN THE 1992 FOURTH QUARTER INLAND POSTED A LOSS OF 677 MILLION OR 215 A SHARE INLAND CITED THE INABILITY TO MEET EXISTING AND UPCOMING ENVIRONMENTAL REGULATIONS AND THE ACCELERATING PHYSICAL DECLINE OF THE PLANT AT ITS INDIANA HARBOR WORKS FACILITY IN EAST CHICAGO IND INLAND BASED IN CHICAGO HAD PLANNED TO CLOSE THE PLANT IN DECEMBER 1994 9310260040 931026 POLITICS & POLICY NEW TRANSPORT TAX MULLED TO FUND NAFTA TARIFF LOSS WASHINGTON THE CLINTON ADMINISTRATION ISN'T YET READY TO GIVE UP COMPLETELY ON A TRADELINKED TRANSPORTATION TAX EVEN THOUGH SOME ADMINISTRATION OFFICIALS WERE SAYING SO LATE LAST WEEK AND TOP REPUBLICANS WERE GETTING THAT MESSAGE UNDER THE LATEST PLAN TO REPLACE TARIFF REVENUE LOST UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT THE US WOULD RAISE THE INTERNATIONAL AIRLINE AND CRUISE TAX FOR PASSENGERS BY 150 TO 650 AND SCRAP PLANS FOR CUSTOMS FEE INCREASES ON COMMERCIAL TRUCKS AND TRAINS THE INCREASE IS ESTIMATED TO RAISE 12 BILLION THE ADMINISTRATION ALSO WOULD RELY ON A BUDGETING GIMMICK TO RAISE 13 BILLION UNDER WHICH THE US WOULD MAKE BANKS FORWARD EMPLOYERS' TAX PAYMENTS TO WASHINGTON ONE DAY SOONER SHIFTING MORE FUNDS INTO THE FIVEYEAR PERIOD USED FOR BUDGET CALCULATIONS IN ADDITION THE ADMINISTRATION WOULD RAISE 140 MILLION BY SPEEDING THE EXCHANGE OF DATA BETWEEN AGENCIES TO REDUCE CUSTOMS FRAUD AND IT WOULD REDUCE SPENDING ON FARM SUBSIDIES BY 180 MILLION BECAUSE IT FIGURES US AGRICULTURAL EXPORTS WILL INCREASE FROM NAFTA MANY NAFTA SUPPORTERS DON'T LIKE THE TAX AND REP NEWT GINGRICH OF GEORGIA THE DEPUTY REPUBLICAN LEADER SAID HE'D OPPOSE THE TRADE AGREEMENT IF IT INCLUDES THE AIRLINE TAX 9310260039 931026 BUSINESS BRIEF GENERAL MOTORS CORP CERTAIN '94 CADILLAC MODELS RECALLED TO REPAIR BRACKET GENERAL MOTORS CORP SAID IT IS RECALLING 8698 CADILLAC ELDORADO AND SEVILLE 1994 MODELS WITH 46LITER NORTHSTAR V8 ENGINE TO FIX A DEFECT GM SAID A DEFECTIVE BRACKET MAY CAUSE A THROTTLE CABLE HOOKED TO THE ACCELERATOR TO COME LOOSE AND BECOME LODGED IN A WAY THAT COULD MAKE THE THROTTLE STICK IN AN OPENED OR CLOSED POSITION GM SAID THAT IT BECAME AWARE OF THE DEFECT THROUGH INPLANT TESTING AND THAT THERE HAVE BEEN NO CUSTOMER REPORTS OF THIS CONDITION'S OCCURRING ON THE ROAD A SPOKESMAN SAID THE DEFECT WAS THE RESULT OF A CHANGE IN THE MANUFACTURING PROCESS THAT MADE THE PART EASIER TO INSTALL THE AUTO MAKER SAID IT WILL CORRECT THE PROBLEM BY INSTALLING A CLIP DEVICE TO HOLD THE THROTTLE CABLE TO THE BRACKET OWNERS OF THE AFFECTED VEHICLES WILL BE NOTIFIED BY MAIL AND REPAIRS WILL BE MADE AT NO CHARGE TO THE CUSTOMERS 9310260038 931026 BUSINESS BRIEF NORTHEAST UTILITIES COMPANY PLANS TO LAY OFF 300 EMPLOYEES THIS WEEK NORTHEAST UTILITIES BERLIN CONN SAID IT WILL LAY OFF 300 EMPLOYEES THIS WEEK ABOUT A 3 REDUCTION IN THE COMPANY'S TOTAL STAFF OF 10000 AS A RESULT OF SLUGGISH ENERGY SALES IN NEW ENGLAND MOST OF THE CUTS WILL BE IN CONNECTICUT WHERE MORE THAN HALF OF THE COMPANY'S EMPLOYEES WORK WITH THE REST OF THE REDUCTIONS COMING IN MASSACHUSETTS AND NEW HAMPSHIRE SAID EMMANUEL FORDE A COMPANY SPOKESMAN SALES IN KILOWATT HOURS ARE DOWN SAID MR FORDE AND THESE LATEST STAFF REDUCTIONS WILL HELP US BE MORE COMPETITIVE THE COMPANY IS EXPECTED TO DISCLOSE A PRETAX CHARGE FOR THE REDUCTIONS TODAY MR FORDE SAID ABOUT 850 EMPLOYEES WERE OFFERED EARLYRETIREMENT PACKAGES SEVERAL MONTHS AGO AND ABOUT 500 TOOK ADVANTAGE OF THE OFFER 9310260037 931026 BUSINESS BRIEF AMR CORP AMR COMBS UNIT TO BUY SOUTHLAND'S CITIJET DIVISION AMR COMBS SAID IT WILL ACQUIRE CITIJET A CORPORATE AVIATION CENTER THAT IS A DIVISION OF SOUTHLAND CORP NO PRICE WAS DISCLOSED FOR THE TRANSACTION WHICH IS EXPECTED TO CLOSE IN NOVEMBER CITIJET BASED IN DALLAS IS ENGAGED IN AIRCRAFT FUEL SALES HANGAR AND OFFICE SPACE LEASING AND FOOD SERVICE AMR COMBS PLANS TO CONTINUE OPERATING THE AVIATION CENTER UNDER THE CITIJET NAME AMR COMBS IS A UNIT OF AMR SERVICES CORP WHICH ITSELF IS A SUBSIDIARY OF AMR CORP OF FORT WORTH TEXAS ALSO PARENT TO AMERICAN AIRLINES AMR SERVICES HAS ANNUAL REVENUE OF 275 MILLION 9310260036 931026 BUSINESS BRIEF HOSPITALITY FRANCHISE SYSTEMS INC THIRDPERIOD NET GREW 46 AS REVENUE INCREASED 33 HOSPITALITY FRANCHISE SYSTEMS INC POSTED 46 GROWTH FOR ITS THIRD QUARTER ON STRONG SUMMER GROWTH IN THE LODGING INDUSTRY AND GROWTH IN THE FIRM'S BRAND NAMES THE HOTEL FRANCHISER BASED IN PARSIPPANY NJ LICENSES BRAND NAMES SUCH AS DAYS INN HOWARD JOHNSON AND RAMADA IT POSTED NET OF 13 MILLION OR 52 CENTS A SHARE A 46 GAIN FROM THE 89 MILLION OR 40 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE FOR THE QUARTER INCREASED 33 TO 821 MILLION FROM 617 MILLION THE SHARP GAIN WAS AN INDICATION OF THE STRENGTH OF THE SUMMER SEASON A RECOVERY OF THE LODGING INDUSTRY AND THE CONTINUED GROWTH OF OUR BRANDS SAID JOHN D SNODGRASS HOSPITALITY PRESIDENT AND CHIEF OPERATING OFFICER HFS STOCK ROSE MODERATELY ON THE RESULTS GAINING 1 A SHARE TO 4275 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9310260035 931026 BUSINESS BRIEF INCO LTD OPERATING LOSS IS REPORTED FOR 3RD QUARTER NET SOARED INCO LTD HURT BY WEAK NICKEL PRICES REPORTED AN OPERATING LOSS OF 13 MILLION IN THE THIRD QUARTER BUT A GAIN ON A SALE OF HOLDINGS IN A SUBSIDIARY SENT PROFIT SHARPLY HIGHER THE OPERATING LOSS COMPARED WITH A PROFIT OF 70 MILLION A YEAR EARLIER AND WAS IN LINE WITH MOST ANALYSTS' ESTIMATES INCO SHARES SLIPPED 375 CENTS OR 18 TO CLOSE AT 20375 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY THE TORONTO BASEMETALS PRODUCER REPORTED A THIRDQUARTER PROFIT OF 912 MILLION OR 83 CENTS PER SHARE INCLUDING A GAIN OF 1279 MILLION FROM INCO'S PUBLIC OFFERING OF 618 OF TVX GOLD INC INCO HAD PROFIT OF 106 MILLION OR NINE CENTS A SHARE IN LAST YEAR'S THIRD QUARTER HIGH INVENTORIES OF NICKEL INCO'S MAIN PRODUCT HAVE SENT PRICES TUMBLING INCO'S REALIZED NICKEL PRICE DROPPED 25 TO 260 PER POUND IN THE QUARTER FROM A YEAR EARLIER SALES FELL 22 TO 468 MILLION FROM 6013 MILLION 9310260034 931026 BUSINESS BRIEF GENENTECH INC FDA PANEL URGES APPROVAL FOR KIDNEY DISEASE DRUG GENENTECH INC SOUTH SAN FRANCISCO CALIF SAID A FOOD AND DRUG ADMINISTRATION ADVISORY PANEL URGED APPROVAL OF THE DRUG NUTROPIN FOR CHILDREN WHOSE GROWTH FALTERS DUE TO CHRONIC KIDNEY DISEASE THE BIOTECHNOLOGY COMPANY MUST STILL AWAIT FORMAL APPROVAL FROM THE FDA COMMISSIONER PANEL RECOMMENDATIONS AREN'T BINDING BUT ARE TYPICALLY GIVEN GREAT WEIGHT IN GRANTING MARKET APPROVAL NUTROPIN IS A NEW VERSION OF GENENTECH'S GENETICALLY ENGINEERED HUMAN GROWTH HORMONE THE EARLIER VERSION OF THE DRUG PROTROPIN ALREADY IS MARKETED FOR THE TREATMENT OF DWARFISM THE COMPANY ESTIMATES ABOUT 3000 CHILDREN IN THE US ARE ON KIDNEY DIALYSIS AWAITING TRANSPLANT ORGANS THE CONDITION CHRONIC RENAL INSUFFICIENCY BLOCKS YOUNGSTERS FROM REACHING THEIR NORMAL ADULT HEIGHT GENENTECH GAVE DATA TO THE FDA PANEL SHOWING NORMAL GROWTH RATES WERE ACHIEVED BY 65 OF SUCH CHILDREN WHEN TREATED WITH NUTROPIN FOR TWO YEARS AND 91 WHEN TREATED FOR THREE YEARS 9310260033 931026 BUSINESS BRIEF HEWLETTPACKARD CO COMPANY PLANS TO ACQUIRE EQUITY STAKE IN EON CORP HEWLETTPACKARD CO PALO ALTO CALIF SAID IT WILL BUY AN EQUITY STAKE IN EON CORP A RESTON VA DEVELOPER OF INTERACTIVETELEVISION TECHNOLOGIES FOR WHICH HP PREVIOUSLY AGREED TO DESIGN TV SETTOP BOXES CLOSELY HELD EON FORMERLY TV ANSWER INC HAS SPENT MORE THAN 100 MILLION DEVELOPING TECHNOLOGIES THAT WOULD PROVIDE TV VIEWERS ACCESS TO INTERACTIVE SERVICES SUCH AS HOME SHOPPING EON'S PLAN IS TO ADD WIRELESSRADIO CAPABILITIES TO SETTOP BOXES AND TO CREATE A WIRELESS NETWORK THAT USES SATELLITES TO TRANSMIT VIEWERS' COMMANDS TO THE PROVIDERS OF INTERACTIVE SERVICES HP HAS AGREED TO PRODUCE SETTOP BOXES FOR EON'S SERVICES INCLUDING BOXES THAT CAN RECEIVE TV PROGRAMMING FROM CABLE PHONE LINES OR CONVENTIONAL BROADCAST AIRWAVES NEITHER COMPANY WOULD SAY HOW MUCH HP AGREED TO INVEST IN EON EON ALSO SAID THAT DIABLO RESEARCH CORP A CLOSELY HELD SANTA CLARA CALIF TECHNOLOGYDEVELOPMENT COMPANY AGREED TO DESIGN A TWOWAY WIRELESS MODEM THAT WILL PLUG INTO EON'S SETTOP BOXES 9310260032 931026 BUSINESS BRIEF AT&T CAPITAL CORP THIRDPERIOD PROFIT DECLINED ON 75 INCREASE IN REVENUE AT&T CAPITAL CORP WHICH WENT PUBLIC IN JULY SAID THIRDQUARTER PROFIT FELL SHARPLY PARTLY REFLECTING A CHARGE FOR AN INCREASE IN CORPORATE TAX THE EQUIPMENT LEASING AND FINANCE COMPANY PREVIOUSLY A UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO SAID NET INCOME WAS 32 MILLION OR SEVEN CENTS A SHARE DOWN FROM A PROFORMA 9 MILLION OR 22 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 75 TO 3307 MILLION FROM 3076 MILLION THE COMPANY TOOK AN 118 MILLION CHARGE REFLECTING THE INCREASE IN THE TAX RATE TO 35 FROM 34 THIS IS THE COMPANY'S FIRST EARNINGS REPORT SINCE IT WENT PUBLIC EARNINGS WERE HELPED BY GROWTH IN FINANCE ASSETS INCREASED FINANCING MARGINS RELATED TO LOWER BORROWING COSTS STRONG REMARKETING ACTIVITY AND INCREASED SERVICEFEE REVENUE FROM MANAGED PORTFOLIOS 9310260031 931026 SOLVEX GETS FINANCING PACKAGE ALBUQUERQUE NM SOLVEX CORP SAID IT AGREED TO COMPLETE A FINANCING PACKAGE OF 25 MILLION CANADIAN DOLLARS US192 MILLION FOR CONSTRUCTION OF AN ALUMINA PRODUCTS PLANT IN ALBERTA THE DEAL WITH DEACON BARCLAYS DE ZOETE WEDD LTD IS EXPECTED TO CLOSE AROUND YEAR'S END SOLVEX AN ALUMINUM AND INSULATION PRODUCTS COMPANY SAID THE TRANSACTION INVOLVES SENIOR DEBT AND CONVERTIBLE SUBORDINATED DEBENTURES THE COMPANY SAID THE DEBENTURES ULTIMATELY WILL BE CONVERTIBLE INTO AN INTEREST IN A NEW JOINT VENTURE THAT WILL COVER ALL OF SOLVEX'S ACTIVITIES IN THE ATHABASCA AREA OF CANADA 9310260030 931026 BUSINESS BRIEF ROYAL BANK OF SCOTLAND GROUP PLC CITIZENS AGREES TO ACQUIRE NEWORLD FOR 1443 MILLION CITIZENS FINANCIAL GROUP INC A UNIT OF ROYAL BANK OF SCOTLAND GROUP PLC SAID IT WILL ACQUIRE NEWORLD BANCORP FOR 1443 MILLION OR 3550 A SHARE IT WAS THE SECOND RECENTLY ANNOUNCED ACQUISITION FOR CITIZENS WHICH IS BASED IN PROVIDENCE RI THIS YEAR IT AGREED TO ACQUIRE BOSTON FIVE BANCORP WITH ASSETS OF 17 BILLION FOR 95 MILLION NEWORLD HAS 22 BRANCHES AND 11 BILLION IN ASSETS CITIZENS SAID IT WILL HAVE ASSETS OF MORE THAN 8 BILLION AFTER THE PURCHASE IN WHICH NEWORLD WILL MERGE INTO CITIZENS BANK OF MASSACHUSETTS THE SALE IS SUBJECT TO SHAREHOLDER AND REGULATORY APPROVAL AND IS EXPECTED TO BE COMPLETED IN THE SPRING OF 1994 THE BANKS SAID NEWORLD BANCORP SHARES CLOSED AT 33 UP 424 OR 15 IN NATIONAL OVERTHECOUNTER TRADING 9310260029 931026 BUSINESS BRIEF ROBERT HALF INTERNATIONAL INC PROFIT MORE THAN DOUBLED DURING THE THIRD QUARTER ROBERT HALF INTERNATIONAL INC CITING COSTCUTTING MOVES AND HIGHER REVENUE SAID THIRDQUARTER NET INCOME MORE THAN DOUBLED ROBERT HALF WHICH SELLS TEMPORARY AND PERMANENT EMPLOYEE PLACEMENT SERVICES SAID NET WAS 309 MILLION OR 24 CENTS A SHARE COMPARED WITH NET OF 115 MILLION OR 10 CENTS A SHARE IN THE YEARAGO QUARTER REVENUE ROSE 40 TO 771 MILLION FROM 551 MILLION A YEAR AGO THE MENLO PARK CALIF COMPANY SAID THE STRONG RESULTS REFLECTED IMPROVED DEMAND FOR ITS SPECIALIZED PERSONNEL SERVICES AS WELL AS COSTCONTAINMENT MEASURES SELLING GENERAL AND ADMINISTRATIVE EXPENSES IN THE QUARTER WERE 216 MILLION OR 28 OF REVENUE COMPARED WITH 175 MILLION OR 32 OF REVENUE A YEAR AGO 9310260028 931026 BUSINESS BRIEF ASARCO INC COMPANY POSTS A DEFICIT BUT NOT AS BIG AS EXPECTED ASARCO INC IN ITS FOURTH CONSECUTIVE QUARTERLY LOSS REPORTED A THIRDQUARTER DEFICIT OF 3 MILLION OR EIGHT CENTS A SHARE AS A RESULT OF LOWER METALS PRICES A YEAR EARLIER THE MINING COMPANY EARNED 181 MILLION OR 44 CENTS A SHARE SALES DURING THE MOST RECENT PERIOD DROPPED 13 TO 4252 MILLION FROM 490 MILLION EVEN WITH THE LOSS ASARCO'S RESULTS CAME IN WELL ABOVE MOST ANALYSTS' ESTIMATES MANY ON WALL STREET EXPECTED THE COMPANY TO SHOW A LOSS OF MORE THAN 30 CENTS A SHARE A REFLECTION IN PART OF THE BLEAK OUTLOOK FOR METALS PRICING IN NEW YORK STOCK EXCHANGE TRADING ASARCO CLOSED AT 1750 OFF 125 CENTS ASARCO LIKE OTHER MINING AND COPPER COMPANIES BLAMED THE LOWER RESULTS ON WEAK PRICES FOR COPPER LEAD AND ZINC