WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION'S LONGAWAITED CABLERATE REPORT WILL WAIT A BIT LONGER RAISING IRE AND SUSPICION AMONG THOSE WHO THINK THEY KNOW WHAT IT WILL SHOW THE FCC HAD SCHEDULED THE REPORT FOR RELEASE YESTERDAY BUT PULLED IT FROM THE AGENDA AT THE LAST MINUTE AND ISSUED A TRUNCATED PRELIMINARY VERSION A SWARM OF CABLE'S FOES AND FRIENDS AT THE MEETING WAS CAUGHT OFF GUARD AND AT LEAST ONE OF THEM WAS FORCED TO PULL BACK A PRESS RELEASE BLASTING THE FINDINGS THE AGENCY SAID IT WAS DELAYING RELEASE OF THE FULL RESULTS UNTIL IT COULD ANALYZE SYSTEMS THAT HAVE REARRANGED THEIR SERVICE TO AVOID RATE REGULATION THE PRELIMINARY REPORT WHICH INCLUDED 14 OF THE 25 COMPANIES SURVEYED SAID ABOUT 68 OF SUBSCRIBERS HAVE HAD THEIR RATES LOWERED SINCE SEPTEMBER WHEN NEW CABLE REGULATIONS WENT INTO EFFECT THE FCC FOUND AN AVERAGE SAVINGS OF 8 OR 2 IN THOSE MONTHLY BILLS AND A 6 INCREASE IN CHANNELS OFFERED MEANING SOME CABLE OPERATORS HAVE ADDED TWO OR MORE CHANNELS TO THEIR LINEUPS HOWEVER THE REPORT DIDN'T SAY HOW MUCH RATES HAVE JUMPED FOR THE NEARLY ONETHIRD OF SUBSCRIBERS WHO HAVE EXPERIENCED RATE INCREASES SINCE SEPTEMBER AND THE 25 OPERATORS SURVEYED WHO SERVE AN ESTIMATED 75 OF THE 58 MILLION CABLE SUBSCRIBERS IN THE US WERE ONLY ASKED TO PROVIDE RATE CARDS AND CHANNEL LINEUPS FOR THEIR 10 LARGEST SYSTEMS THAT MEANS DATA COVER JUST 14 MILLION SUBSCRIBERS OR ONEQUARTER OF THE TOTAL THE PARTIAL REPORT RELEASED YESTERDAY INCLUDES LESS THAN 20 OF ALL VIEWERS BECAUSE FULL SURVEY RESULTS WERE HIGHLY ANTICIPATED THE LATE REMOVAL OF THE TOPIC FROM THE FCC AGENDA WAS TROUBLING TO LEGISLATORS AND CONSUMERS WHO CONTINUE TO QUESTION THE AGENCY'S BENCHMARK LEVELS FOR APPROPRIATE RATE REDUCTIONS CLEARLY A SIGNIFICANT NUMBER OF SUBSCRIBERS HAVE BEEN VICTIMIZED BY LOOPHOLES IN THE REGULATIONS OR BY UNSCRUPULOUS PRACTICES BY CABLE OPERATORS SAID REP EDWARD J MARKEY D MASS WHO CHAIRS A HOUSE SUBCOMMITTEE THAT HAS ASKED THE FCC TO RECONSIDER ITS RATE POLICIES THE 11 CABLE OPERATORS LEFT OUT OF YESTERDAY'S INITIAL STUDY WERE THOSE WHO MIGHT HAVE FOUND SUCH A LOOPHOLE THE RATE RULES COVER A COMPANY'S BASIC SERVICE PACKAGES AND MANY COMPANIES HAVE CREATED SOCALLED A LA CARTE PACKAGES IN WHICH MUCH OF THE COST IS SHIFTED TO CHANNELS THAT ESCAPE RATE REGULATION JAMES QUELLO FCC ACTING CHAIRMAN SAID THE PRICING ANALYSIS OF A LA CARTE CHANNEL PACKAGES WON'T BE COMPLETED UNTIL SOMETIME IN NOVEMBER AND THAT THE AGENCY DIDN'T WANT TO HAVE INITIAL FIGURES AND THEN HAVE MINOR CORRECTIONS HE ALSO DIDN'T RULE OUT THE POSSIBILITY OF ACTION AGAINST CABLE OPERATORS WHO HAVE EVADED REGULATIONS BUT THE COMMUNITY ANTENNA TELEVISION ASSOCIATION A CABLE INDUSTRY TRADE GROUP IS CONFIDENT THE OPERATORS ARE COMPLYING WITH ALL REGULATIONS THE SURVEY SHOWS THAT CABLE COMPANIES ARE COMPLYING WITH THE CABLE ACT BY RESTRUCTURING AND REPACKAGING THEIR PRODUCTS WHICH ULTIMATELY PROVIDES WIDER PURCHASE OPTIONS FOR CONSUMERS SAID CATA PRESIDENT STEVE EFFROS 9310220100 931022 BUSINESS BRIEF WEST ONE BANCORP LOAN INTEREST MARGIN GAINS SENT 3RDPERIOD NET UP 32 WEST ONE BANCORP BOISE IDAHO SAID STRONG LOAN GROWTH AND HIGHER INTEREST MARGINS DROVE THIRDQUARTER NET INCOME UP 32 TO 218 MILLION OR 65 CENTS A SHARE THAT COMPARES WITH NET INCOME OF 165 MILLION OR 52 CENTS A SHARE A YEAR EARLIER EARNINGS FOR THE PERIOD WERE RESTATED BECAUSE OF A 2FOR1 STOCK SPLIT THE BANKING COMPANY SAID THE BOOMING REGIONAL ECONOMY OF IDAHO AND UTAH DROVE NEW LENDING THE BANK REPORTED THAT ITS RETURN ON ASSETS INCREASED TO A VIGOROUS 116 FROM 112 A YEAR EARLIER 9310220099 931022 THE AMERICAS CANADA'S PLACID TIMES MAY SOON BE FORGOTTEN BY J DUNCAN EDMONDS OTTAWA MONDAY'S NATIONAL ELECTION IN CANADA IS GOING TO SHATTER THE IMAGE HELD BY MANY AMERICANS OF THAT COUNTRY AS A QUIET STABLE IF SOMEWHAT DULL DEMOCRACY TWO NEW REGIONAL PARTIES ARE ALMOST CERTAIN TO ACHIEVE MAJOR GAINS THAT WILL BOTH THREATEN AND ALTER THE CANADIAN POLITICAL LANDSCAPE THE BLOC QUEBECOIS WHICH ADVOCATE SEPARATION FOR QUEBEC AND THE REFORM PARTY IN WESTERN CANADA WHICH ADVOCATES REDUCING CANADA'S DEFICIT TO ZERO IN THREE YEARS AND REPRESENTS A LESS CONCILIATORY ATTITUDE TOWARD QUEBEC ALTHOUGH THE BASIC FORCES AND TENSIONS THAT UNDERLIE THESE PARTIES HAVE BEEN EVIDENT FOR SOME TIME MONDAY EVENING WILL MARK THE BEGINNING OF A NEW POLITICAL ERAONE IN WHICH THE COUNTRY'S BASIC REGIONAL ETHNIC AND IDEOLOGICAL TENSIONS WILL BE OPENLY AND VIGOROUSLY IN CONFLICT WHILE THE PRECISE PARTY STANDINGS MUST AWAIT MONDAY'S FINAL TALLIES THE OVERALL BROAD RESULTS CAN BE FORECAST CURRENT STANDINGS OF THE PARTIES IN PARLIAMENT ARE AS FOLLOWS CONSERVATIVES 152 LIBERALS 79 NEW DEMOCRATIC PARTY NDP 43 OTHERS 11 INCLUDING ONE REFORM PARTY AND 8 BLOC QUEBECOIS AND 10 VACANCIES RECENT POLLING DATA SUGGEST THAT MONDAY'S ELECTION WILL PRODUCE A DRAMATICALLY CHANGED PARLIAMENT JEAN CHRETIEN AND HIS LIBERAL PARTY WILL WIN THE ELECTION AND FORM A GOVERNMENT PROBABLY WITH A SLIM MAJORITY PRIME MINISTER KIM CAMPBELL AND HER CONSERVATIVE PARTY WILL LOSE VERY BADLY PERHAPS THEY WILL FORM THE OFFICIAL OPPOSITION BUT THERE IS A DISTINCT POSSIBILITY THAT THEY MAY ACTUALLY BE PUSHED INTO THIRD PLACE BEHIND THE BLOC QUEBECOIS THE BLOC QUEBECOIS UNDER LUCIEN BOUCHARD BY LIKELY CAPTURING SOME TWOTHIRDS OF THE 75 SEATS IN QUEBEC REPRESENTS THE MOST DRAMATIC OUTCOME OF THIS ELECTION AND POSES A MAJOR THREAT TO THE SURVIVAL OF CANADA AS IT EXISTS TODAY THIS THREAT WILL BE EVEN MORE FORMIDABLE IF IT DOES INDEED FORM THE OFFICIAL OPPOSITION THE NDP UNDER AUDREY MCLAUGHLIN WILL LOSE HEAVILY AND BE REDUCED TO A MINOR PLAYER THE REFORM PARTY UNDER PRESTON MANNING BY WINNING ABOUT 35 SEATS VIRTUALLY ALL IN WESTERN CANADA WILL ESTABLISH ITSELF AS A VERY SIGNIFICANT REGIONAL AND IDEOLOGICAL FORCE IN PARLIAMENT IT MAY HAVE SWINGVOTE LEVERAGE ESPECIALLY IF THE LIBERALS FALL SHORT OF A MAJORITY IN ITS ADVOCACY OF STERN FISCAL MANAGEMENT AND RUTHLESS DEFICIT CUTTING REFORM CAN COUNT ON VERY SUBSTANTIAL SUPPORT ACROSS CANADA A POWERFUL INDICATOR OF THIS BACKING CAME THIS WEEK IN A LEAD EDITORIAL IN CANADA'S NATIONAL NEWSPAPER THE GLOBE AND MAIL MR MANNING WANTS HIS PARTY TO BE THE FISCAL AND DEMOCRATIC CONSCIENCE' OF THE NEXT PARLIAMENT HE HAS EARNED THAT RIGHT WHAT DOES ALL OF THIS SIGNIFY FOR CANADA'S FUTURE THE SHORT ANSWER IS SOME PROMISE BUT MUCH PERIL THE LIKELY NEW PRIME MINISTER MR CHRETIEN IS FROM QUEBEC AND A WELLKNOWN QUANTITY AT 59 HE HAS SOME 30 YEARS EXPERIENCE IN CANADIAN POLITICS INCLUDING NINE CABINET PORTFOLIOS HE IS WIDELY REGARDED AS A MAN OF SOUND JUDGMENT AND UNBLEMISHED INTEGRITY AS MINISTER OF JUSTICE IN THE TRUDEAU GOVERNMENT IN THE EARLY '80S MR CHRETIEN PLAYED A KEY ROLE IN CONSTITUTIONAL DISCUSSIONS AND IN DEFEATING THE REFERENDUM IN QUEBEC ON SEPARATION THESE ACTIONS EARNED HIM THE ENDURING ANIMOSITY OF MANY QUEBEC NATIONALISTS A LEGACY THAT HAS NOT HELPED HIM IN QUEBEC THE LACK OF PRECISION OF SOME OF MR CHRETIEN'S POLICIES SUCH AS THE DETAILS OF HOW REVENUE WILL BE FOUND TO FULFILL THE PROMISE OF ABOLISHING CANADA'S MUCH HATED FEDERAL SALES TAX OR JUST HOW MUCH PRIORITY WILL BE GIVEN TO DEFICIT REDUCTIONIS TROUBLING TO MANY CANADIANS SIMILARLY A PROMISED JOB CREATION PROGRAM THROUGH PUBLIC SECTOR SPENDING ON INFRASTRUCTURE PROJECTS IN PARTNERSHIP WITH THE PROVINCES AND MUNICIPALITIES HAS BEEN DESCRIBED AS AN EMBARRASSING FRAUD BY THE GLOBE AND MAIL MORE ACCEPTABLE IS THE LIBERAL'S PROMISE TO RENEGOTIATE THE FREE TRADE AGREEMENT WITH THE US WHAT BOTHERS MANY CANADIANS IS THAT NAFTA PUSHED THROUGH PARLIAMENT IN THE FINAL DAYS OF THE MULRONEY GOVERNMENT WILL NEGATE ONE OF THE KEY PROVISIONS OF THE EARLIER CANADAUS DEAL THE ARTICLE CALLING FOR USCANADIAN NEGOTIATIONS TO SPECIFICALLY DEFINE WHAT CONSTITUTES A SUBSIDY ONCE DEFINED THE US WOULD LOSE SOME OF ITS ARBITRARY DISCRETION IN APPLYING SANCTIONS AGAINST CANADIAN GOODS RESOLUTION OF THIS ISSUE IS MUCH LESS LIKELY NOW THAT MEXICO HAS BEEN THROWN INTO THE MIX BUT ALL OF THESE AND OTHER POLICIES BECOME SECONDARY WHEN VIEWED IN THE CONTEXT OF THE INSTABILITY AND UNCERTAINTY MANIFEST IN THE PRESENCE OF THE BLOC AND REFORM PARTIES THE ESSENCE OF CANADIAN POLITICAL TRADITION FOR OVER 100 YEARS HAS BEEN TO ACCOMMODATE THE COUNTRY'S REGIONAL AND ETHNIC TENSIONS WITHIN THE BROAD CONSENSUS OF THE TWO NATIONAL PARTIES THE CONSERVATIVES AND LIBERALS THIS TRADITION HAS COME UNDER GREAT STRAIN IN RECENT YEARS AND THE RESULTS OF THIS ELECTION MAY SPELL ITS DOOM THE SEPARATIST FORCES IN QUEBEC HAVE MADE NO SECRET OF THEIR THREE STAGE STRATEGY FIRST THE ESTABLISHMENT OF A SIGNIFICANT BLOC PRESENCE IN OTTAWA SECOND A VICTORY FOR THE PARTI QUEBECOIS IN THE NEXT PROVINCIAL ELECTION DUE WITHIN 18 MONTHS AND FINALLY AN EARLY REFERENDUM ON SEPARATION WITH SUCCESS AT EACH STEP CONTRIBUTING MOMENTUM FOR THE NEXT THE SEPARATISTS ARE CERTAINLY ON THEIR WAY TOWARD WINNING ROUND ONE VERY IMPRESSIVELY AND THEY ARE WELL POSITIONED FOR ROUND TWO THE SPARKS THAT WILL FLY BETWEEN THE BLOC AND REFORM ARE BOUND TO MAKE MR CHRETIEN'S ATTEMPTS TO FIND THE MIDDLE GROUND FRUSTRATING THIS IS A WELCOME DEVELOPMENT FOR SOME COMMENTATORS WHO ARGUE THAT CANADA'S TRADITIONAL WAYS HAVE RESULTED IN TOO MANY PROBLEMS BEING IGNORED OR SWEPT UNDER THE CARPET THROUGH A SERIES OF NEBULOUS COMPROMISES THAT HAVE FAILED TO SATISFY EITHER QUEBEC'S SENSE OF NATIONAL DESTINY OR THE ALIENATION OF MANY WESTERNERS ACCORDING TO THIS THINKING IN THIS ERA OF REINVENTING GOVERNMENT THE OPENING OF THE SYSTEM WITH DIRECT REPRESENTATION OF LONGSTANDING FUNDAMENTAL GRIEVANCES WILL PROVIDE NEW AND POSITIVE OPPORTUNITIES FOR THEIR RESOLUTION OTHERS INCLUDING MICHAEL WILSON THE FORMER CONSERVATIVE FINANCE MINISTER ARE LESS SANGUINE AT THE PROSPECTS AHEAD IN AN ARTICLE THIS WEEK MR WILSON WROTE THE CURRENT ELECTION COULD GENERATE SIGNIFICANT RISKS FOR CANADA BY FAR THE MOST IMPORTANT PROBLEM FACING CANADA TODAY IS THE STATE OF OUR ECONOMY IF ECONOMIC POLICY IS DIVERTED BY TENSIONS RESULTING FROM REGIONAL DISTORTIONS MANY IMPORTANT ISSUES WILL BE NEGLECTED TO THE DETRIMENT OF THE ECONOMY MR WILSON'S WORST FEARS MAY BE CONFIRMED WITH THE FINAL ELECTION RESULTS NEXT MONDAY MR EDMONDS AN OTTAWABASED CONSULTANT IS THE FORMER CHAIRMAN OF CANADIAN STUDIES AT YALE UNIVERSITY 9310220098 931022 SMALL STOCK FOCUS PRICES INCH UP AFTER 3 LOSING SESSIONS DESPITE WORRIES OVER CORPORATE PROFITS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK DESPITE NIGGLING WORRIES ABOUT CORPORATE PROFITS PRICES GATHERED ENOUGH MOMENTUM TO INCH HIGHER AFTER THREE STRAIGHT LOSING SESSIONS TECHNOLOGY STOCKS WERE STRONG BUT FLAGGING BOND PRICES CONFINED MOST ISSUES TO A TIGHT TRADING RANGE THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED OVER THE COUNTER AND ON THE MAJOR EXCHANGES ADDED 019 TO 25521 THE NASDAQ COMPOSITE INDEX GAINED 303 POINTS OR 039 TO END AT 77128 DECLINING NASDAQ ISSUES NARROWLY BEAT ADVANCERS 1484 TO 1434 NASDAQ NATIONAL MARKET VOLUME WAS 268412600 SHARES AND NASDAQ TOTAL VOLUME WAS 338566000 SHARES WEDNESDAY NASDAQ NATIONAL MARKET VOLUME HIT 284191200 SHARES WITH TOTAL VOLUME AT 336905900 SHARES TRADERS SAID SOME INVESTORS TOOK PROFITS AGAIN TO COUNTER LAST WEEK'S SURGE SMALL STOCKS HAVE HAD TO REGROUP SAID NELSON GOLD SENIOR VICE PRESIDENT OF OTC TRADING AT INTERSTATE/JOHNSON LANE THEY'VE HAD A LOT OF STRENGTH SO THIS IS VERY NORMAL HE ADDED THAT ALTHOUGH EARNINGS HAVE BEEN MOSTLY GLOWING PRICES HAD ALREADY BEEN UP IN ANTICIPATION OF GOOD SALES AND EARNINGS BUT IF YOU DISAPPOINT THEY'RE GOING TO BEAT THE HELL OUT OF YOU I THINK THESE SMALLER ISSUES COULD GO A LITTLE BIT LOWER STILL AFTER THE PARABOLIC MOVE THE NASDAQ HAS HAD OVER THE LAST COUPLE OF YEARS SAID ALFRED E GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS I DOUBT THAT WE'LL GET AWAY WITH JUST ONE DAY OF A NOSEBLEED BUT THIS IS A POSITIVE SIGN SHOWING THAT THE MARKET IS SELFCORRECTING MR GOLDMAN ESTIMATED THAT OVER THE NEXT COUPLE OF WEEKS THE RUSSELL 2000 COULD DIP AS LOW AS 250 AND THE NASDAQ COMPOSITE COULD SLIP TO THE 760 OR POSSIBLY 750 LEVEL TECHNOLOGY ISSUES SHONE AST RESEARCH OF IRVINE CALIF MOVED UP 1 1/8 TO 18 1/4 ROBEC BASED IN HORSHAM PA CLIMBED 1/2 TO 3 AND QUANTUM OF MILPITAS CALIF ROSE 1/8 TO 10 1/4 IN EARNINGS NEWS NETMANAGE ZOOMED 2 3/4 TO 29 1/2 THE CAPERTON CALIF NETWORKING COMPANY REPORTED THIRDQUARTER EARNINGS OF 25 CENTS A SHARE UP FROM TWO CENTS A YEAR EARLIER CONTROL DATA SYSTEMS OF ARDEN HILLS MINN FELL 1 1/2 TO 9 5/8 ALTHOUGH IT REPORTED IMPROVED THIRDQUARTER EARNINGS BUT THE COMPUTERSYSTEMS SUPPLIER SAID WEAK REVENUE FROM ITS EUROPEAN OPERATIONS COULD AFFECT ITS FOURTHQUARTER AND 1994 EARNINGS LINCOLN TELECOMMUNICATIONS BASED IN LINCOLN NEB STUMBLED 1 1/2 TO 37 1/2 THE PROVIDER OF TELEPHONE SERVICES POSTED THIRDQUARTER EARNINGS OF 51 CENTS A SHARE BELOW THE 52 CENTS REPORTED THE YEAR EARLIER TELEBIT OF CHELMSFORD MASS FELL 1 5/8 TO 8 THE DATATRANSMISSION PRODUCTS COMPANY SAID ITS THIRDQUARTER NET ROSE TO 12 CENTS A SHARE FROM NINE CENTS A YEAR EARLIER COHU AMEX GAINED 2 1/2 TO 19 5/8 THE SAN DIEGO MANUFACTURER OF TELEVISION EQUIPMENT SAID ITS THIRDQUARTER EARNINGS IMPROVED TO 44 CENTS A SHARE FROM 22 CENTS LAST YEAR WARREN BANCORP PEABODY MASS JUMPED 1 TO 8 1/2 FOLLOWING ITS REPORT OF THIRDQUARTER EARNINGS OF 57 CENTS A SHARE IMPROVED FROM THE 11 CENTS POSTED A YEAR EARLIER MID ATLANTIC MEDICAL OF ROCKVILLE MD ROSE 1 3/8 TO 28 3/4 THE COMPANY SAID IT EARNED 40 CENTS A SHARE IN THE THIRD QUARTER UP FROM 25 CENTS A YEAR EARLIER IMMUNE RESPONSE OF CARLSBAD CALIF SLIPPED 2 TO 11 THE DEVELOPER OF PRODUCTS TO TREAT HIV INFECTION SAID ITS THIRDQUARTER LOSS WIDENED TO 19 CENTS A SHARE FROM SIX CENTS A YEAR EARLIER OXFORD HEALTH PLANS BASED IN DARIEN CONN WAS UP 1 1/2 TO 73 1/4 THE PROVIDER OF HEALTHBENEFIT PLANS SAID IT HAS BEEN GRANTED A LICENSE TO OPERATE A HEALTHMAINTENANCE ORGANIZATION IN CONNECTICUT ATMEL OF SAN JOSE CALIF SLUMPED 1 3/4 TO 25 1/8 FOLLOWING AN ALEX BROWN & SONS DOWNGRADE TO BUY FROM STRONG BUY ANALYST JOHN MARREN SAID HE CHANGED THE INTEGRATED CIRCUITS COMPANY'S RATING TO REFLECT THE LIKELIHOOD OF INCREASED COMPETITION IN THE FLASHMEMORY MARKET A RALLY AMONG PAGING ISSUES SENT DIAL PAGE OF GREENVILLE SC SOARING 6 3/4 TO 57 1/4 AND METRICOM BASED IN LOS GATOS CALIF 2 5/8 HIGHER TO 23 1/8 THE GAINS CAME DESPITE THE COMPANIES REPORTING THIRDQUARTER LOSSES PERRIGO'S PUBLIC OFFERING OF 13 MILLION COMMON SHARES WAS PRICED AT 31 EACH THE LARGEST SECONDARY OFFERING EVER BY A NASDAQTRADED COMPANY A NASDAQ REPRESENTATIVE SAID THE SHARES WILL BE OFFERED BY CERTAIN SELLING SHAREHOLDERS WITH ABOUT TWOTHIRDS OFFERED ON BEHALF OF HILLMAN PERRIGO AN ALLEGAN MICH MAKER OF PHARMACEUTICALS AND PERSONALCARE PRODUCTS FELL 7/8 TO 31 1/8 ON VOLUME OF 67 MILLION SHARES COMPARED WITH AVERAGE DAILY TURNOVER OF 399500 SHARES NASDAQ NATIONAL MARKET STOCKS THAT HAVE HIT NEW HIGHS FOR THE YEAR TO DATE TOTAL 133 WHILE 47 ISSUES HAVE HIT NEW LOWS 9310220097 931022 BUSINESS BRIEF BOOLE & BABBAGE INC CONCERN TO POST 44 INCREASE IN FISCAL 4THQUARTER PROFIT THAT COMPARES WITH NET INCOME OF 16 MILLION OR 35 CENTS A SHARE A YEAR EARLIER AND IS HIGHER THAN ANALYSTS' EXPECTATIONS THE EXPECTED RESULTS FOR THE PERIOD ENDED SEPT 30 INCLUDE A CHARGE OF 650000 OR 10 CENTS A SHARE FOR CONSOLIDATION THE SAN JOSE CALIF SOFTWARE COMPANY SAID BRISK INTERNATIONAL SALES OF ITS AUTOMATION SOFTWARE DROVE REVENUE UP 10 TO NEARLY 315 MILLION FROM 287 MILLION A YEAR EARLIER 9310220096 931022 INTERNATIONAL BRIEF L'OREAL SA PRETAX CONSOLIDATED PROFIT ROSE MORE THAN 10 IN HALF FRENCH BEAUTY PRODUCTS AND PHARMACEUTICALS GROUP L'OREAL SA SAID PRETAX CONSOLIDATED PROFIT ROSE MORE THAN 10 IN THE FIRST HALF FROM A YEAR EARLIER PRETAX CONSOLIDATED PROFIT INCREASED TO TO 245 BILLION FRANCS 4221 BILLION FROM 222 BILLION FRANCS WHILE REVENUE GREW 48 TO 2089 FRANCS FROM 1994 FRANCS L'OREAL ALSO SAID IT EXPECTS FULLYEAR REVENUE AND PROFIT GROWTH TO BE AT LEAST EQUIVALENT TO THAT OF THE FIRST HALF CHAIRMAN LINDSAY OWENJONES SAID THE COMPANY MANAGED TO SEE INCREASES IN REVENUE AND PROFITS IN SPITE OF DIFFICULT ECONOMIC CONDITIONS 9310220095 931022 CORPORATE FOCUS MANVILLE'S WEAKER UNIT BECOMES A SOURCE OF STRENGTH THIRDQUARTER PROFIT SURGES ON TURNAROUND AT SCHULLER FIBERGLASS BUSINESS BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL DENVER WHEN MANVILLE CORP SPLIT ITS OPERATIONS INTO TWO UNITS IN 1989 JUST ABOUT EVERYBODY THOUGHT THEY KNEW WHICH WOULD BE THE STAR SEPARATED FROM THE ASBESTOSLADEN PAST OF ITS PARENT WHICH HAD JUST EMERGED FROM BANKRUPTCYLAW PROCEEDINGS THE RIVERWOOD INTERNATIONAL UNIT WAS IN THE SEXIER BUSINESS OF MAKING PAPER PRODUCTS ANALYSTS SCRAMBLED TO COVER THE NEW COMPANY AND INSTITUTIONAL INVESTORS QUICKLY SNAPPED UP MOST OF THE 11 MILLION SHARES ABOUT 20 OF RIVERWOOD WHEN MANVILLE OFFERED THEM TO THE PUBLIC IN 1992 SCHULLER INTERNATIONAL WHICH MAKES FIBERGLASS PRODUCTS FOR SUCH TROUBLESOME CYCLICAL MARKETS AS CONSTRUCTION AEROSPACE AND AUTOS REPORTED 166 MILLION IN OPERATING LOSSES IN 1991 AND APPEARED TO BE HEADED FOR A POSSIBLE SALE BUT AS MANVILLE'S THIRDQUARTER EARNINGS RELEASED YESTERDAY MAKE CLEAR IT'S RIVERWOOD THAT'S THE WEAK SISTER RIVERWOOD ITS EARNINGS SQUEEZED BETWEEN THE LOWEST LINERBOARD PRICES IN SEVEN YEARS AND AN AMBITIOUS 250 MILLION PRODUCTLINE CONVERSION PROJECT REPORTED A THIRDQUARTER NET LOSS THIS WEEK OF 18 MILLION COMPARED WITH NET INCOME OF 78 MILLION A YEAR AGO MEANWHILE SCHULLER WHICH DOESN'T REPORT NET RESULTS HAD AN INCREASE OF ABOUT 60 IN OPERATING PROFIT FOR THE QUARTER TO 354 MILLION FROM 221 MILLION A YEAR EARLIER ON ONLY A 4 INCREASE IN SALES IT'S ONE OF THE PROUDEST THINGS THIS COMPANY HAS TO TALK ABOUT SAYS TOM STEPHENS CHAIRMAN OF MANVILLE THE WAY THE FOLKS AT SCHULLER HAVE LEARNED HOW TO PROSPER MANVILLE SAID ITS NET INCOME MORE THAN DOUBLED TO 13 MILLION OR SIX CENTS A SHARE FROM 58 MILLION OR ONE CENT A SHARE A YEAR EARLIER THE LATEST QUARTER INCLUDES A NET GAIN OF 95 MILLION FOR ONETIME ITEMS RELATED TO RESTRUCTURING CHANGES IN TAX LAWS AND EARLY DEBT REPAYMENT SALES INCHED UP 13 TO 6002 MILLION FROM 5926 MILLION BUT OPERATING PROFIT FELL TO 462 MILLION FROM 514 MILLION A YEAR EARLIER MANVILLE'S STOCK ROSE 125 CENTS TO 6875 IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY IRONICALLY RIVERWOOD'S PROBLEMS STEM FROM ITS EXPOSURE TO CYCLICAL MARKETS CONSTRUCTION AND PAPER CURRENTLY STUCK IN A TROUGH IN ITS 1991 ACQUISITION OF MACON KRAFT INC RIVERWOOD GOT TWO MACHINES THAT MAKE LINERBOARD WHICH IS USED FOR BOXES ONE MACHINE IS BEING CONVERTED TO COATEDBOARD PRODUCTION WHICH SHOULD REDUCE THE COMPANY'S EXPOSURE TO FLUCTUATIONS IN COMMODITY PRICES THE COMPANY HASN'T BEEN ABLE TO COVER THE COSTS OF THE CONVERSION WITH EARNINGS FROM THE OTHER MACHINE BECAUSE OF LOW LINERBOARD PRICES THIS MONTH MANVILLE BOUGHT 34 MILLION RIVERWOOD SHARES FOR 50 MILLION TO EASE THE UNIT'S CASH SHORTAGE RAISING ITS STAKE TO 815 FROM 805 RIVERWOOD'S MAIN BUSINESSES REMAIN STRONG THE NUMBER OF CONTAINERMAKING MACHINES LEASED TO SUCH CONSUMER GIANTS AS ANHEUSERBUSCH COS AND PEPSICO INC IS UP 30 OVER LAST YEAR AND SALES OF ITS NEW TWINPACK BEVERAGECAN PACKAGE ARE RUNNING ABOVE EXPECTATIONS BY THE THIRD QUARTER OF 1994 MANVILLE AND RIVERWOOD MANAGEMENT SAY THE COATEDBOARD MACHINE WILL BE UP AND RUNNING TAKING THE PRESSURE OFF RIVERWOOD EARNINGS UNTIL THEN MANVILLE'S SUCCESS APPEARS TO RIDE ON SCHULLER WHICH HAS ENGINEERED A TURNAROUND IN A SLOW MARKET THROUGH STRICT COST CONTROLS PRODUCTIVITY BRAINSTORMING SESSIONS WITH WORKERS THE SHUTDOWN OF HIGHCOST PLANTS AND DISCONTINUATION OF UNPROFITABLE PRODUCT LINES ONLY 18 MONTHS AGO ANALYSTS WERE ESTIMATING THAT IN THE BEST OF TIMES SCHULLER COULD EARN 100 MILLION A YEAR FROM OPERATIONS ON SALES OF ABOUT 1 BILLION IN THE FIRST NINE MONTHS OF 1993 THE COMPANY ALREADY HAD OPERATING EARNINGS OF 867 MILLION ON 870 MILLION IN SALES UP FROM 68 MILLION ON 8367 MILLION IN SALES A YEAR EARLIER IN ANALYZING ITS INCOME GROWTH A MONTHLY EXERCISE MANDATED BY THE MANVILLE BOARD SCHULLER FOUND THAT MANUFACTURING EFFICIENCIES ACCOUNTED FOR 126 MILLION OF THE 187 MILLION IMPROVEMENT IN THE LATEST NINE MONTHS WHILE HIGHER PRICES FOR INSTANCE PROVIDED ONLY 12 MILLION THE GAINS IN EFFICIENCY HAVE COME FROM INCREMENTAL IMPROVEMENTS IN PROCESSES NOT PLANT CLOSINGS SAYS SCHULLER PRESIDENT RICHARD KASHNOW AND MUCH OF THAT IMPROVEMENT STEMMED FROM THE TOWN MEETINGS WITH EMPLOYEES AT ITS 33 PLANTS AT THE MEETINGS MANAGERS WERE PRESSURED TO APPROVE IMMEDIATELY AS MANY SUGGESTIONS AS POSSIBLE SAYS MR KASHNOW WHO EXPECTS AT LEAST A 92 APPROVAL RATE FOR WORKER IDEAS AT ONE ROOFING PLANT FLOOR SUPERVISORS ASKED FOR WIRELESS TELEPHONES SO THEY COULD BE TOLD IMMEDIATELY WHEN ROOFSHINGLE PRODUCTION WAS SWITCHING FROM ONE TYPE OF SANDLIKE GRANULE TO ANOTHER THE IMPROVED COMMUNICATION ENABLED THEM TO SHUT OFF THE FLOW OF THE FIRST GRANULE MUCH MORE QUICKLY SAVING THOUSANDS OF DOLLARS IN LOST MATERIALS MR KASHNOW SAYS SCHULLER HAS ALSO INCREASED SALES BY BEING MORE CUSTOMERCONSCIOUS IT ADDED 1 MILLION IN SALES MONTHLY FOR EXAMPLE BY HEEDING PREFERENCES OF COMMERCIAL ROOFERS AND ADDING A MACHINE TO TAPER FIBERBOARD USED AS A ROOF SUBSURFACE SCHULLER HAS REDUCED ANNUAL OPERATING COSTS BY 100 MILLION USING A VARIETY OF METHODS WORKERS AT ITS ETOWAH TENN GLASS PLANT FOR EXAMPLE VISITED SCHULLER'S JAPANESE PARTNER NIPPON ELECTRIC GLASS TO LEARN HOW TO IMPROVE CONTROL OVER BREAKS IN GLASS FIBERS THE KEY TO INCREASING FIBERGLASS OUTPUT WITHOUT INCREASING FURNACE SIZE WE NEED TO GET PEOPLE FOCUSED ON SUPERIOR PERFORMANCE AS THE BEST WAY TO INSURE JOBS MR KASHNOW SAYS SOMETIMES THE BEST WAY TO DO THAT IS LOOK OUTSIDE YOUR OWN WORK ENVIRONMENT NOW SCHULLER AND MANVILLE WOULD LIKE TO BEGIN TO REAP SOME OF THE REWARDS OF THIS PERFORMANCE THROUGH A SCHULLER STOCK OR DEBT OFFERING AS RIVERWOOD HAS DONE SCHULLER COULD USE THE PROCEEDS EITHER TO PAY DIVIDENDS BACK TO MANVILLE SHAREHOLDERS 80 OF THE STOCK IS HELD BY THE MANVILLE PERSONAL INJURY SETTLEMENT TRUST OR RAISE MONEY FOR ACQUISITIONS BUT THE COMPANY HAS YET TO CONVINCE MANY PEOPLE THAT IT HAS SUFFICIENT LONGTERM GROWTH POTENTIAL MOST ANALYSTS AND INVESTORS HAVE SHUNNED MANVILLE ALTOGETHER BECAUSE OF ITS CLOUDED PAST AND THE FEW ANALYSTS WHO HAVE STUDIED MANVILLE HAVE FOCUSED ON RIVERWOOD EVEN MANAGEMENT ACKNOWLEDGES THAT ITS EFFORT TO GROW WITH NEW PRODUCTS IS AN EXPENSIVE AND UNPREDICTABLE PATH CROWDED WITH WELLHEELED AND QUICKMOVING COMPETITORS WORSE SCHULLER'S MAIN BUSINESS FIBERGLASS IS UNDER ATTACK BY SOME HEALTH EXPERTS WHO THINK IT IS A CARCINOGEN SIMILAR TO ASBESTOS BECAUSE OF THESE OBSTACLES SCHULLER'S CONTRIBUTION OF 100 MILLION A YEAR IN CASH TO MANVILLE HAS GONE VIRTUALLY UNNOTICED SAYS MR KASHNOW WE STILL HAVEN'T GOTTEN THE AWARENESS AND RECOGNITION WE SHOULD HAVE HE SAYS 9310220094 931022 CATERPILLAR INC CUMMINS POST JUMPS IN PROFIT THIRDPERIOD RESULTS PAINT ROSY PICTURE FOR MAKERS OF HEAVY EQUIPMENT BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL CATERPILLAR INC AND CUMMINS ENGINE CO POWERED BY BRISK DEMAND FOR HEAVY EQUIPMENT AND THEIR OWN EFFORTS TO BOOST PRODUCTIVITY REPORTED STRONG THIRDQUARTER EARNINGS INCREASES THE BETTERTHANEXPECTED RESULTS FROM TWO OF THE BESTKNOWN NAMES IN HEAVY MANUFACTURING SHOWED THAT A BRIGHT PICTURE IS EMERGING AT A GROWING NUMBER OF MANUFACTURERS THAT HAVE FOCUSED ON BECOMING MORE COMPETITIVE THE PROFIT REPORTS HELPED THE STOCK PRICES OF BOTH COMPANIES ADD TO ALREADYSTRONG GAINS SO FAR THIS YEAR IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CATERPILLAR SHARES JUMPED 275 TO 85875 AND CUMMINS SHARES SOARED 4625 OR 58 TO 83875 CATERPILLAR PEORIA ILL THE LEADING MAKER OF CONSTRUCTION EQUIPMENT SAID EARNINGS BEFORE SPECIAL GAINS CLIMBED TO 96 MILLION OR 95 CENTS A SHARE FROM 5 MILLION OR FIVE CENTS A SHARE A YEAR EARLIER GAINS FROM A TAX SETTLEMENT WITH THE INTERNAL REVENUE SERVICE AND FROM A TAX CREDIT BOOSTED NET INCOME IN THE QUARTER TO 432 MILLION OR 426 A SHARE REVENUE ROSE 63 TO 285 BILLION FROM 268 BILLION AS AN 18 INCREASE IN US SALES MORE THAN OFFSET A 3 DECLINE IN SALES OUTSIDE THE COUNTRY THE RESULTS LED ANALYSTS TO BOOST THIS YEAR'S PROFIT PROJECTIONS THEIR EARNINGS MOMENTUM IS BETTER THAN JUST ABOUT ANY MACHINERY STOCK I CAN THINK OF SAID BARRY BANNISTER CAPITAL GOODS ANALYST AT SG WARBURG & CO IN NEW YORK MR BANNISTER PREDICTS CATERPILLAR WILL EARN 3 A SHARE THIS YEAR BEFORE SPECIAL ITEMS 5 A SHARE NEXT YEAR AND 8 IN 1995 CATERPILLAR SAID 26 MODELS OF ITS BIG MACHINES MANY OF THEM NEW ARE IN SHORT SUPPLY AND THUS ON ALLOCATION TO DEALERS THE MARKET LOVES THOSE NEW PRODUCTS BOASTED LEN KUCHAN DIRECTOR OF INVESTOR RELATIONS CUMMINS COLUMBUS IND A MAKER OF HEAVY AND MEDIUMDUTY DIESEL ENGINES SHOWED THAT IT'S EVEN FURTHER AHEAD IN ITS PROFIT RECOVERY POSTING ITS SECONDBEST THIRD QUARTER EVER EARNINGS NEARLY TRIPLED TO 407 MILLION OR 222 A SHARE FROM 138 MILLION OR 69 CENTS A SHARE A YEAR EARLIER THE LATEST PERIOD INCLUDED A TAX CREDIT OF 44 MILLION SALES ROSE 94 TO 9883 MILLION FROM 9036 MILLION CUMMINS WHOSE ENGINES ARE USED IN BOTH HEAVYDUTY HIGHWAY TRUCKS AND SMALLER PICKUP TRUCKS SAID IT EXPECTS BOTH AREAS TO BE STRONG IN THE FOURTH QUARTER THE APPARENT RETURN TO STEADY PROFITS IS A WELCOME SIGN AT HEARTLAND COMPANIES SUCH AS CATERPILLAR AND CUMMINS THAT HAVE SPENT MUCH OF THE LAST FEW YEARS ON EXPENSIVE UPGRADES OF THEIR FACTORIES PETER HAMILTON CHIEF FINANCIAL OFFICER AT CUMMINS SAID IMPROVEMENTS AT THECOMPANY HAVE CONTRIBUTED TO A BRIGHTER MOOD BUT WE'RE STILL VERY DETERMINED TO CONTINUE TO GET IMPROVEMENTS AT CATERPILLAR MR KUCHAN SAID THE LONG AND EXPENSIVE MODERNIZATION PROGRAM IS HELPING THE COMPANY BOOST SALES AND PRODUCTION WITH FEWER EMPLOYEES THAN IT HAD A YEAR AGO UNCLE SAM ALSO HELPED OUT IN CATERPILLAR'S LATEST QUARTER THE SETTLEMENT OF A DISPUTE OVER TAXES AND INTEREST FOR THE YEARS 1979 THROUGH 1987 GAVE CATERPILLAR A 300 MILLION AFTERTAX GAIN A SEPARATE TAX CREDIT ADDED ANOTHER 36 MILLION TO THE BOTTOM LINE 9310220093 931022 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN JAPAN'S FINANCE MINISTRY SAID ITS STRICTER MONITORING HAS HELPED REDUCE IMPORTS OF FAKE BRANDNAME GOODS BUT IT SAID THE QUALITY OF THESE ITEMS IS INCREASING MAKING IT MUCH MORE DIFFICULT TO DISTINGUISH THEM FROM THE REAL THING JAPANESE CUSTOMS OFFICES SEIZED 361694 BOGUS ITEMS EXCLUDING THOSE BROUGHT IN BY TRAVELERS SINCE TIGHTER SURVEILLANCE WAS INTRODUCED IN SEPTEMBER 1992 DOWN 27 FROM A YEAR EARLIER AND THE NUMBER OF CASES DECLINED 40 TO 593 FROM 993 COPIES OF FAMOUS EUROPEAN AND US BRANDED GOODS DECLINED WHILE THOSE OF JAPANESE BRANDS INCREASED THE FIGURES ARE STILL HIGH BUT A GOVERNMENT PUBLICITY CAMPAIGN TO STOP SUCH IMPORTS HAS LED TO THE STEADY DECLINE THE MINISTRY SAID STILL ALONG WITH IMPROVING THE QUALITY OF FAKE GOODS IMPORTERS ARE BECOMING INCREASINGLY CUNNING ABOUT DECEIVING CUSTOMS OFFICIALS THE AGENCY SAID A BILL IN GERMANY'S PARLIAMENT WOULD GIVE MARRYING COUPLES CHOICES IN THE SURNAME THEY USE NOW A WOMAN WHO WANTS TO RETAIN HER MAIDEN NAME MUST COMBINE IT HYPHENATED WITH HER HUSBAND'S SURNAME THE MEASURE CONSIDERED CERTAIN TO BECOME LAW WOULD ALLOW MARRIED MEN AND WOMEN EACH TO KEEP THEIR OWN SURNAMES OR TO TAKE EITHER ONE AS A COMMON MARRIED NAME THOUGH COUPLES WOULD HAVE TO AGREE ON A SINGLE SURNAME FOR A CHILD THE LEGISLATION COULD CLOG THE COURTS AS EVERY MARRIED PERSON IN GERMANY COULD CHANGE HIS OR HER NAME UNDER THE NEW RULES WITHIN A YEAR AFTER PASSAGE BULGARIA NEEDS TO QUICKEN ITS ECONOMICREFORM PACE A BUSINESS MISSION SPONSORED BY THE US OVERSEAS PRIVATE INVESTMENT CORP SAID DURING A TOUR FOR ABOUT 20 US COMPANIES TO EXPLORE INVESTMENT OPPORTUNITIES THERE IS A REAL SENSE THAT THE FRAMEWORK IS ALMOST IN PLACE FOR PRODUCTIVE INVESTMENT IN THIS COUNTRY BUT SOME ISSUES REMAIN AN OPIC AIDE SAID SPECIFYING THE NEED FOR A COMMERCIAL BANKING SECTOR FASTER PRIVATIZATIONS AND A LAW ON INSOLVENCY POTENTIAL INVESTMENTS IN BULGARIA THROUGH OPIC A US GOVERNMENT AGENCY THAT FACILITATES FOREIGN INVESTMENT BY AMERICAN BUSINESSES TOTAL 350 MILLION THE MISSION ALSO VISITED ROMANIA THE UNITED ARAB EMIRATES' CENTRAL BANK TIGHTENED RESTRICTIONS ON CHECKING ACCOUNTS AFTER LOSSES FROM BAD CHECKS TOTALED 19 BILLION LAST YEAR THE 47 COMMERCIAL BANKS IN THE UAE REPORTED THE LOSSES FROM 580000 BAD CHECKS WHICH HAVE BEEN INCREASING 29 A YEAR THE NEW RULES BAN HOLDERS OF CHECKING ACCOUNTS FROM OPENING ANY NEW BANK ACCOUNT IF THEY HAVE WRITTEN FOUR BAD CHECKS WITHIN THE PAST YEAR BANKERS URGED STRICTER MEASURES TO DETER WRITING OF BAD CHECKS SUCH AS LEGISLATION CRIMINALIZING THE PRACTICE IN THE SECOND SCANDAL TO EMERGE THIS MONTH INVOLVING AIDSTAINTED BLOOD SUPPLIES GERMANY SOUGHT WAYS TO HELP THE HUNDREDS OF VICTIMS HEALTH OFFICIALS WERE BEING INVESTIGATED FOR POSSIBLE CRIMINAL CHARGES FOLLOWING ALLEGATIONS THAT A BLOOD PRODUCT CONTAMINATED WITH HIV THE VIRUS THAT CAUSES AIDS WAS USED IN 1990 ONE OFFICIAL HAS BEEN SUSPENDED EARLIER THIS MONTH THE HEALTH MINISTRY ACCUSED THE FEDERAL HEALTH OFFICE OF COVERING UP 373 CASES IN WHICH PATIENTS GOT CONTAMINATED BLOOD UNTIL BLOODSUPPLY TESTING BEGAN IN 1985 THE OFFICE WAS ORDERED DISSOLVED AND TWO TOP OFFICIALS WERE FIRED CHINA THIS YEAR EXPECTS ALMOST TO DOUBLE TO 4 BILLION ITS IMPORTS OF AUTO PARTS AND CARS INCLUDING 15000 AUTOS AND VANS MADE BY THE BIG THREE PRODUCERS IN THE US BY YEAR END 250000 VEHICLES ARE TO BE ASSEMBLED IN CHINA USING IMPORTED PARTS UP FROM 160000 IN 1992 IMPORTED VEHICLES ARE TO BE SOLD TO FOREIGN EMBASSIES AND COMPANIES IN CHINA MOST CARS ARE BOUGHT BY GOVERNMENT INSTITUTIONS AND ENTERPRISES RELATIVELY FEW INDIVIDUALS CAN AFFORD TO BUY A CAR AS STICKER PRICES REPRESENT SEVERAL DECADES OF AN AVERAGE WORKER'S EARNINGS FRANCE APPROVED BUILDING A TRUCK TUNNEL THROUGH THE PYRENEES A MOUNTAIN RANGE ON THE BORDER WITH SPAIN CONSTRUCTION OF THE 53MILE TUNNEL MOST OF IT IN SPAIN COULD START IN A MONTH ENVIRONMENTALISTS OPPOSED THE PROJECT SAYING TRAFFIC WOULD RUIN THE LUSH ASPE VALLEY IN SOUTHWEST FRANCE AND ENDANGER THE HABITAT OF THE LAST NINE KNOWN PYRENEES BEARS IN GERMANY MORE THAN 10000 STEELWORKERS WHO FACE UNEMPLOYMENT AS THE INDUSTRY RESTRUCTURES DEMONSTRATED AGAINST GOVERNMENT PLANS TO CUT JOBLESS BENEFITS AND THE GERMAN CHEMICAL INDUSTRY WILL SEEK A WAGE FREEZE SAYING ANY PAY BOOST WOULD CAUSE MORE JOB LOSSES ALREADY EXPECTED TO TOTAL 30000 THIS YEAR INDONESIA THE WORLD'S THIRDLARGEST CACAO PRODUCER AFTER IVORY COAST AND BRAZIL IS EXPANDING PLANTINGS TO INCREASE ANNUAL PRODUCTION BY TWOTHIRDS TO 500000 TONS BY THE YEAR 2000 TEL AVIV'S BEN GURION AIRPORT WAS CLOSED AFTER THOUSANDS OF STRIKING AEROSPACE WORKERS SWEPT OUT OVER THE RUNWAYS OF ISRAEL'S MAIN INTERNATIONAL AIRPORT THE WORKERS WANT BETTER WORKING CONDITIONS AT THE GOVERNMENT'S ISRAELI AIRCRAFT INDUSTRIES WHICH IS REDUCING ITS WORK FORCE AND RENEGOTIATING SALARIES TO BECOME MORE COSTEFFICIENT AND COMPETITIVE 9310220092 931022 BUSINESS BRIEF MOBLEY ENVIRONMENTAL SERVICES INC COMPANY EXPECTS TO REPORT LOSS FOR THE THIRD QUARTER MOBLEY ENVIRONMENTAL SERVICES INC SAID IT EXPECTS TO REPORT A SUBSTANTIAL LOSS FOR ITS THIRD QUARTER AND WILL RESTRUCTURE ITS HAZARDOUSWASTE BUSINESS LAYING OFF 65 OF THE COMPANY'S 350 EMPLOYEES THE AUSTIN TEXAS COMPANY CITED A SHRINKING MARKET AND AN OVERSUPPLY FOR HAZARDOUSWASTE SERVICES AND ITS OWN PROBLEMS MEETING ENVIRONMENTAL REGULATIONS A YEAR EARLIER THE COMPANY HAD PROFIT OF 621000 OR EIGHT CENTS A SHARE THE TEXAS NATURAL RESOURCES COMMISSION RECENTLY CLOSED MOBLEY'S GIBRALTAR CHEMICAL RESOURCES WASTEDISPOSAL UNIT FOR NEARLY TWO WEEKS AFTER NEARBY RESIDENTS OF WYNONA TEXAS COMPLAINED OF HEALTH PROBLEMS FROM AIR EMISSIONS ALLEGEDLY FROM THE MIXING OF INCOMPATIBLE WASTES AT THE FACILITY SEPT 9 THE FACILITY WAS ALLOWED TO REOPEN LIMITED OPERATIONS EARLIER THIS MONTH AND IS NOW UNDERGOING A REVIEW TO ALLOW IT TO RESUME FULL OPERATIONS THE COMPANY SAID SPECIFICS OF THE REORGANIZATION AND LAYOFFS AREN'T FINAL BUT THAT THE COMPANY WILL TAKE A ONETIME CHARGE FOR WRITEDOWNS OF SOME ASSETS AND OTHER NONRECURRING EXPENSES 9310220091 931022 ECONOMY BIG COMPANIES SEE HEALTH COSTS SLOWING EMPLOYERS PUSH MANAGED CARE SEEK DISCOUNTS A WALL STREET JOURNAL NEWS ROUNDUP SOME OF AMERICA'S BIGGEST CORPORATIONS ARE DOING WHAT ONCE SEEMED IMPOSSIBLE REINING IN THEIR HEALTHBENEFIT COSTS AFTER SEEING HEALTH COSTS SURGE AN AVERAGE OF 8 TO 12 LAST YEAR NEARLY TWO DOZEN GIANT COMPANIES CONTACTED BY THE WALL STREET JOURNAL REPORT THAT THEIR GROWTH RATES ARE SLOWING SIGNIFICANTLY COMPANIES TYPICALLY SAY THAT EMPLOYEE HEALTH EXPENSES THIS YEAR ARE RISING JUST 6 TO 9 SOME BENEFITS MANAGERS ARE RINGING UP EVEN SMALLER INCREASES THE SLOWDOWN IS COMING EVEN THOUGH PRESIDENT CLINTON'S HEALTHCARE REFORM PLAN HASN'T YET BEEN FORMALLY SENT TO CONGRESS LET ALONE ENACTED FOR MANY COMPANIES IN FACT THE TREND REFLECTS COSTCONTAINMENT STRATEGIES PUT IN PLACE BEFORE MR CLINTON TOOK OFFICE IN JANUARY WE'VE DONE A LOT OF THE THINGS CLINTON IS TALKING ABOUT NOW SAYS GARY GROM SENIOR VICE PRESIDENT FOR HUMAN RESOURCES AT SARA LEE CORP WE'VE ESTABLISHED A CULTURE WHERE EMPLOYEES ARE CONCERNED ABOUT HEALTHCARE COSTS PERHAPS THE BIGGEST COST SAVINGS ARE COMING AS COMPANIES SUCH AS MOBIL CORP FORD MOTOR CO AND CITICORP MAKE GREATER USE OF MANAGEDCARE PROGRAMS THESE PROGRAMS ENCOURAGE EMPLOYEES TO DEAL WITH A PREDETERMINED GROUP OF DOCTORS AND HOSPITALS THAT AGREE TO PROVIDE CARE AT LOWER COSTS MANAGEDCARE PROGRAMS ALSO CREATE CENTRALIZED REVIEW SYSTEMS TO TRY TO LIMIT OVERUSE OF COSTLY MEDICAL SERVICES AT MOBIL PREMIUMS FOR HEALTHCARE COVERAGE THIS YEAR ARE UP 55 FROM LAST YEAR'S LEVELS CHRIS W O'FLINN MANAGER OF CORPORATE BENEFITS AND REGULATORY AFFAIRS FOR THE FAIRFAX VA OIL COMPANY CREDITS GREATER UTILIZATION OF MANAGEDCARE PRODUCTS AND DIRECT CONTRACTING WITH EFFICIENT HEALTHCARE PROVIDERS COMPANIES ALSO APPEAR TO BE BENEFITING FROM A GENERAL DROP IN HEALTHCARE INFLATION THIS MONTH THE LABOR DEPARTMENT REPORTED MEDICAL PRICES CLIMBED AT A 42 ANNUAL RATE IN THE THIRD QUARTER DOWN FROM 7 IN THE SECOND PERIOD DON SHINKLE A VICE PRESIDENT AT WALMART STORES INC SAYS THAT COMPANY IS SEEING SMALLER PRICE INCREASES FOR HOSPITAL TREATMENT OF THE COMPANY'S COVERED EMPLOYEES WALMART EXPECTS TO SPEND 450 MILLION FOR HEALTH BENEFITS OF 212000 COVERED EMPLOYEES THIS YEAR AN INCREASE OF 32 ON A PERPERSON BASIS FROM LAST YEAR'S OUTLAY IN SOME CASES COMPANIES SAY THEY ARE SAVING FURTHER CASH BY JAWBONING DOCTORS AND HOSPITALS INTO GIVING THEM BIG VOLUMERELATED DISCOUNTS MCDONNELL DOUGLAS CORP SAYS IT HAS BEGUN GETTING DISCOUNTS OF 37 TO 41 FROM CERTAIN HOSPITALS THAT TREAT MANY OF ITS EMPLOYEES FAMILY MEMBERS OR RETIREES A FEW COMPANIES REPORT THAT EMPLOYEE FITNESS PROGRAMS ARE HELPING TO RESTRAIN HEALTH COSTS TOO AMERICAN TELEPHONE & TELEGRAPH CO SAYS THAT AT LEAST 80000 OF ITS 260000 US EMPLOYEES ARE INVOLVED IN PROGRAMS FOCUSED ON WELLNESS GOALS SUCH AS SMOKING CESSATION EXERCISE OR BETTER NUTRITION AT&T FIGURES THAT FOR EVERY 1 SPENT ON THESE PROGRAM IT AVOIDS 160 IN MEDICAL COSTS COMPANIES' BIGGEST COSTCONTROL PUSH THOUGH INVOLVES MANAGED CARE AT DUPONT CO A LONGPLANNED OVERHAUL OF ITS HEALTH BENEFIT PROGRAMS WILL LEAD IT TO PUT ABOUT 40 OF COVERED PERSONS INTO POINTOFSERVICE MANAGEDCARE PROGRAMS IN 1994 SAYS BRUCE KARRH A TOP BENEFITS OFFICIAL AT THE CHEMICAL COMPANY THESE PROGRAMS ENCOURAGE PATIENTS TO USE PRESELECTED DOCTORS BUT ALLOW MEMBERS TO GO OUTSIDE THE PLAN IF THEY ARE WILLING TO PAY A GREATER SHARE OF THE COSTS DUPONT'S DR KARRH PREDICTS THAT 60 OF COVERED PERSONS WILL BE IN THESE PROGRAMS IN 1995 HE ALSO SAYS DUPONT WILL BE RAISING THE SHARE OF MEDICAL COSTS THAT ITS BENEFICIARIES MUST PAY WITH SUCH MOVES DR KARRH FIGURES EVEN IF NATIONWIDE HEALTHBENEFIT COSTS CONTINUED TO RISE 12 A YEAR WE WOULD SEE ABOUT A 5 INCREASE CITICORP TOO IS MOVING TOWARD MANAGED CARE FOR ITS US EMPLOYEES AFTER INTRODUCING MANAGED CARE IN 1991 IN SELECTED CITIES THE BANKING CONCERN WILL HAVE IT AS AN OPTION FOR ALL US EMPLOYEES BY NEXT YEAR A SPOKESMAN SAID ABOUT 78 OF THOSE EMPLOYEES WHO HAVE THE OPTION USE IT FORD MOTOR CO MEANWHILE HAS SWITCHED EMPLOYEES RECEIVING SUBSTANCEABUSE TREATMENT AND PSYCHIATRIC TREATMENT OUT OF TRADITIONAL COVERAGE AND INTO MANAGED CARE THAT STEP IS HELPING TO CUT COSTS SAYS ROBERT OZMENT FORD'S DIRECTOR OF CORPORATE AND EMPLOYEE INSURANCE NOT ALL BIG COMPANIES ARE SEEING A SLOWDOWN IN HEALTHRELATED EXPENSES AT HEWLETTPACKARD CO HEALTH COSTS FOR THE YEAR ENDING OCT 31 ARE EXPECTED TO RISE MORE THAN 11 AFTER CLIMBING LESS THAN 2 LAST YEAR ART YOUNG BENEFITS MANAGER FOR THE TECHNOLOGY COMPANY CITES AN AGING WORK FORCE WE GOT OLDER HE SAYS WE DIDN'T HIRE YOUNG PEOPLE WHEN THAT HAPPENS HEALTHCARE COSTS GO UP MOST COMPANIES THOUGH SAY THEY ARE INCREASINGLY CONFIDENT THAT THEY CAN TAKE STEPS TO CONTROL THEIR COSTS EVEN THOUGH THE ULTIMATE NATURE OF NATIONAL HEALTHSYSTEM REFORM REMAINS UNCERTAIN WE RATHER DELIBERATELY MOVED AHEAD WITH OUR INITIATIVES BECAUSE WE THINK HEALTHCARE COSTS ARE SOMETHING WE NEED TO CONTROL SAYS FRED ALLEN EXECUTIVE DIRECTOR OF COMPENSATION AND BENEFITS AT MERCK & CO LAST YEAR HEALTHBENEFIT COSTS AT THE PHARMACEUTICALS COMPANY SURGED 14 MR ALLEN SAYS GROWTH IS SLOWING SOMEWHAT THIS YEAR TO ABOUT 12 MR ALLEN ACKNOWLEDGES THAT THE TIMING AND CONTENT OF HEALTH REFORM HAVEN'T BEEN RESOLVED BUT HE SAYS I DON'T THINK WE CAN SIT AND WAIT FOR THAT TO BE SETTLED 9310220090 931022 INTERNATIONAL TESTIMONY BY NAFTA CRITICS IS TERMINATED BY TELEVISA MEXICO CITY A GROUP OF MEXICANS TESTIFYING VIA SATELLITE BEFORE A US SENATE COMMITTEE WERE ABRUPTLY CUT OFF BY A POWERFUL MEXICAN TELEVISION STATION RAISING NEW QUESTIONS ABOUT FREEDOM OF SPEECH AS MEXICO ENTERS ITS PRESIDENTIALCAMPAIGN YEAR THE FIVE MEXICANS ALL WITH VARYING CRITICISMS OF THE NORTH AMERICAN FREE TRADE AGREEMENT LOST VIDEO AND AUDIO CONNECTION WITH THE COMMERCE COMMITTEE FROM THE STUDIOS OF TELEVISA SA A TELEVISA SPOKESWOMAN SAID THE MEDIA CONGLOMERATE HAD NOTHING TO SAY ON THE MATTER BUT TELEVISA WAS EXPECTED TO DENY IN ITS LATEEVENING NEWSCAST THAT IT CENSORED THE TESTIMONY AND AFFIRM THAT IT HAD MET ITS CONTRACTUAL ARRANGEMENT WITH THE SENATE A GOVERNMENT OFFICIAL SAID THE SENATE HAD CONTRACTED FOR 1 1/2 HOURS OF TIME WITH TELEVISA AND COMMUNICATIONS WERE CUT AFTER LESS THAN AN HOUR A SENATE STAFFER SAID SEN ERNEST HOLLINGS D SC CHAIRMAN OF THE COMMERCE COMMITTEE WHO OPPOSES NAFTA WAS QUICK TO CONDEMN THE ACTION YOU CAN'T HAVE FREE TRADE WHEN YOU DON'T HAVE A FREE SOCIETY HE SAID TELEVISA HAS COME UNDER HEAVY FIRE FOR PROVIDING PALTRY COVERAGE OF CRITICAL VIEWS OF THE MEXICAN GOVERNMENT JORGE CASTANEDA AN ACADEMIC AND AUTHOR WHO WAS AMONG THOSE WHO TESTIFIED CALLED THE EPISODE TRADITIONAL AUTHORITARIAN BEHAVIOR BY TELEVISA THE EPITOME OF MEXICAN AUTHORITARIAN RULE 9310220087 931022 MARKETING & MEDIA ADVERTISING OMNICOM'S TINY MERKLEY WINS BIG IBM'S PC DOMESTIC ACCOUNT BY KEVIN GOLDMAN WHEN INTERNATIONAL BUSINESS MACHINES AWARDED ITS PERSONAL COMPUTER DOMESTIC ADVERTISING TO OMNICOM GROUP'S MERKLEY NEWMAN HARTY IT MARKED A SWEET VICTORY FOR THE TINY SIXMONTHOLD NEW YORK AGENCY AND ALTHOUGH IT WAS EXPECTED IT WAS ALSO A PAINFUL BLOW TO A FAR LARGER RIVAL INTERPUBLIC GROUP'S LINTASNEW YORK IBM AWARDED ITS PERSONAL COMPUTER ACCOUNT OVERSEAS TO OMNICOM'S DDB NEEDHAM'S PARIS OFFICE TOTAL WORLDWIDE BILLINGS ARE ESTIMATED AT 100 MILLION DIVIDED EQUALLY BETWEEN THE TWO AGENCIES THE SAGA OF THE VICTORY BY MERKLEY WITH TOTAL BILLINGS OF A MERE 65 MILLION INVOLVES SOME OF ADVERTISING'S MORE COLORFUL AGENCIES INCLUDING RUNNERUP GOODBY BERLIN & SILVERSTEIN AND ANOTHER ALSORAN CHIAT/DAY IT INCLUDES ELABORATE PRESENTATIONS THAT COST EACH SHOP AN ESTIMATED 50000 TO 75000 GOODBY BERLIN EVEN RENTED AN EXPENSIVE ORIENTAL RUG AND ANTIQUE FURNITURE FOR ITS PITCH TO IBM EXECUTIVES AT THE TRYG VE LIE ROOM ON THE 28TH FLOOR OF MANHATTAN'S ULTRACHIC UN PLAZA HOTEL THE NEWS IS PARTICULARLY GRATIFYING TO JANE NEWMAN MERKLEY NEWMAN'S EXECUTIVE VICE PRESIDENT AND DIRECTOR OF ACCOUNT PLANNING MS NEWMAN WHO LEFT CHIAT/DAY EARLIER THIS YEAR TURNS 47 YEARS OLD TODAY JAY CHIAT THE CHAIRMAN REMOVED MS NEWMAN AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE NEW YORK OFFICE IN 1990 REASSIGNING HER AS VICE CHAIRMAN RESPONSIBLE FOR STRATEGIC PLANNING IF THERE WERE ANY LINGERING BITTERNESS FOR HER EXECUTIVE SHUFFLE AT CHIAT/DAY MS NEWMAN DIDN'T BETRAY IT IN AN INTERVIEW ALL TOO OFTEN YOU'RE PITCHING AGAINST YOUR BEST FRIENDS SHE SAYS THE CHIAT FOLKS CALLED US THIS MORNING AND SAID THEY'RE HAPPY FOR US NEXT TIME IT'LL BE THEM THE WIN IS A STUNNING VICTORY FOR OMNICOM WHICH OWNS A NUMBER OF AGENCIES INCLUDING BBDO THE AGENCY FOR IBM'S ARCHRIVAL APPLE COMPUTER OMNICOM'S STRATEGY TO CREATE NIMBLE AGENCIES WITH GLOBAL REACH CLEARLY PAID OFF OUR AGENCIES NEED TO BE CREATIVELY DRIVEN WHERE THE PRODUCT IS EVERYTHING SAYS BRUCE CRAWFORD OMNICOM'S CHAIRMAN IN ITS FIRST MEETING WITH GOODBY BERLIN IBM EXECUTIVES ASKED WHETHER THE AGENCY WOULD ESTABLISH A NEW YORK SATELLITE OFFICE THE EMPHATIC ANSWER FROM RICHARD SILVERSTEIN A PRINCIPAL AND CREATIVE DIRECTOR NO BUT IBM ASSURED THE AGENCY THAT DECISION DIDN'T AFFECT ITS ABILITY TO REMAIN IN THE PITCH NOR DID AN AMUSING GAFFE THE DAY BEFORE GOODBY BERLIN'S PRESENTATION ITS EXECUTIVES WERE RIDING IN THE HOTEL ELEVATOR ONE AGENCY OFFICIAL REMARKED THAT HE HOPED NOT TO BE SEATED NEXT TO ANYONE FROM IBM WHO'S CONSIDERED A NERD AN INDIVIDUAL IN THE ELEVATOR REMARKED THAT THEY SHOULD BE CAREFUL WITH CASUAL CONVERSATION YOU NEVER KNOW WHEN THE CLIENT IS PRESENT WARNED THE PERSON WHO WAS AN IBM EXECUTIVE BUT IBM AND GOODBY BERLIN EXECUTIVES SAY THE INCIDENT WAS MERELY HUMOROUS NOT HARMFUL CLEARLY SHAKEN BY IBM'S DECISION IS LINTAS WHICH IS EXPERIENCING A STINGING RUN OF HIGHPROFILE HIGHPAYING CLIENT DEFECTIONS BESIDES IBM RECENT LOSSES INCLUDE MASTERCARD INTERNATIONAL AND COCACOLA'S DIET COKE IN ADDITION MILLER BREWING'S MOLSON BEER WAS UNEXPECTEDLY PLACED IN REVIEW ON TUESDAY ANTHONY J DEGREGORIO EXECUTIVE VICE PRESIDENT AND CHIEF CREATIVE OFFICER RESIGNED AS EXPECTED HIS ROLE DIMINISHED AFTER DIET COKE WAS AWARDED TO INTERPUBLIC'S LOWE & PARTNERS LINTAS CERTAINLY TRIED HARD TO KEEP IBM'S PERSONAL COMPUTER BUSINESS THE AGENCY ESTABLISHED A SEPARATE UNIT DUBBED L2 TO BRAINSTORM FOR THE ACCOUNT BUT EVEN WITH THE BELLS AND WHISTLES OF A NEW ALBEIT TEMPORARY UNIT LINTAS WAS GENERALLY CONSIDERED A LONG SHOT ON MADISON AVENUE WHERE PERCEPTION IS EVERYTHING THE VIEW IS THAT LINTAS IS IN A FREEFALL THE IBM LOSS CAN'T HELP THAT AGREES KENNETH L ROBBINS CHAIRMAN AND CHIEF EXECUTIVE OF LINTASWORLDWIDE OTHER TOP LINTAS EXECUTIVES SUCH AS ANTHONY G MILLER CHAIRMAN AND CHIEF EXECUTIVE OF LINTASNEW YORK THE OFFICE THAT'S ACTUALLY LOSING ALL THE BUSINESS DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT MR ROBBINS EMPHASIZES THAT IBM'S PERSONAL COMPUTER ACCOUNT REPRESENTED ONLY 20 OF THE AGENCY'S TOTAL IBM BILLINGS LINTAS RETAINS IBM'S MAINFRAME AND SOFTWARE ACCOUNTS WHICH ARE LESS SEXY THAN THE BUSINESS THAT GOT AWAY HOW WILL LINTAS TRY TO TURN AROUND ITS IMAGE TO SCRAPE FOR EVERY NEW PIECE OF BUSINESS WE CAN FIND ANSWERS MR ROBBINS ONE TARGET FOR LINTAS BURGER KING WHICH WAS PLACED IN REVIEW EARLIER THIS WEEK WE'RE WELL SUITED FOR THEM HE SAYS OPTIMISTICALLY NOTING THAT THE AGENCY IN THE PAST HANDLED RESTAURANT CHAINS STEAK AND ALE AND BENNIGAN'S BOTH UNITS OF S&A RESTAURANTS MR ROBBINS SAYS IT'S UNLIKELY THAT LINTAS WILL HAVE ADDITIONAL LAYOFFS FROM THE IBM LOSS ALTHOUGH FIRINGS ARE EXPECTED FROM THE LOSS OF DIET COKE THERE WERE ABOUT 20 INDIVIDUALS ASSIGNED TO THE L2 MICROAGENCY MR ROBBINS SAYS THE VAST MAJORITY WILL BE REASSIGNED WITHIN LINTAS THESE LOSSES ARE TOUGH BLOWS TO OUR MIDSECTION HE SAYS BUT WE AREN'T DEVASTATED WE'LL BE BACK MR ROBBINS'S PROCLAMATION ECHOED THAT OF CHIAT/DAY WHICH PLACED A FULLPAGE NEWSPAPER AD AFTER IT UNEXPECTEDLY LOST THE REEBOK INTERNATIONAL ACCOUNT TO LEO BURNETT CHICAGO IN SEPTEMBER THE AD SAID IN PART YOU HAVEN'T HEARD THE LAST OF US EITHER BUT CHIAT LOST THE IBM PC PITCH AS WELL AND HASN'T WON ANY OTHER MAJOR ACCOUNTS RECENTLY MERKLEY NEWMAN HAS ITS COMPETITIVE WORK CUT OUT FOR IT BEGINNING MONDAY RIVAL APPLE IS LAUNCHING AN AGGRESSIVE WORLDWIDE TELEVISION CAMPAIGN FOR ITS MACINTOSH THE SERIES OF FIVE COMMERCIALS FROM BBDO ALL OF WHICH HAVE THE TAGLINE IT DOES MORE IT COSTS LESS IT'S THAT SIMPLE FEATURE THE WHIZBANG TECHNOLOGICAL ADVANTAGES OF THE APPLE COMPUTER COMPARED WITH AN ANTIQUATED UNNAMED COMPETITOR COULD APPLE BE TRYING TO GENTLESLAM IBM WITHOUT NAMING ITS CHIEF RIVAL FALLONMCELLIGOTT MINNEAPOLIS COMPLETED ITS EXPECTED BUYBACK FROM WPP GROUP'S SCALI MCCABE SLOVES FOR 146 MILLION INCLUDING 10 MILLION IN CASH AND 46 MILLION IN THE FORM OF AN INTERESTBEARING NOTE THE MANAGEMENT BUYBACK CLEARS THE WAY FOR WPP'S MUCHANTICIPATED SALE OF THE SCALI MCCABE AGENCY TO INTERPUBLIC GROUP SOME EXECUTIVES CLOSE TO THE DEAL SAID IT COULD HAPPEN AS SOON AS TODAY ALTHOUGH OTHERS SAID THE FINAL PENSTROKES WEREN'T SO IMMINENT WPP WHICH HAD HELD A 64 STAKE IN FALLON SAID FALLON HAD 1992 REVENUE OF 164 MILLION PRETAX PROFIT OF 13 MILLION AND ASSETS VALUED AT 22 MILLION FALLON EXPECTS 1993 REVENUE OF 173 MILION WPP SAID WPP WHICH IS CHIPPING AWAY AT ABOUT 370 MILLION 5527 MILLION OF BANK DEBT SAID THE SALE OF FALLON WOULDN'T RESULT IN A MATERIAL EXCEPTIONAL GAIN OR CHARGE FALLON SAID IT IS NOW OWNED 100 BY ITS EMPLOYEES INCLUDING CHAIRMAN PAT FALLON AND BILL WESTBROOK PRESIDENT AND CREATIVE DIRECTOR RATINGS OF CBS NETWORK'S BROADCAST OF THE WORLD SERIES SO FAR ARE 13 LOWER THAN LAST YEAR ACCORDING TO AC NIELSEN THE FIRST FOUR GAMES OF THE TORONTOPHILADELPHIA SHOWDOWN DREW 167 OF US HOMES WITH TELEVISION SETS ACCORDING TO NIELSEN LAST YEAR THE FIRST FOUR GAMES BETWEEN TORONTO AND ATLANTA AVERAGED 189 THE LEASTWATCHED SERIES EVER WAS THE SAN FRANCISCOOAKLAND CONTEST IN 1989 WHICH WAS INTERRUPTED BY A MAJOR EARTHQUAKE ACCORDING TO MICHAEL EISENBERG A VICE PRESIDENT AT CBS RATINGS HAVE BEEN HURT BY THE PRESENCE OF TORONTO WHICH ISN'T MEASURED TO DETERMINE RATINGS CBS SAID HAD CHICAGO A MUCH LARGER TELEVISION MARKET OR ATLANTA NOT LOST OUT IN THE LEAGUE PLAYOFFS RATINGS WOULD HAVE BEEN BETTER TOO CBS SAID A RAIN DELAY TUESDAY NIGHT AND THE EXTRAINNINGS MARATHON WEDNESDAY NIGHT ALSO CONTRIBUTED TO LOWER RATINGS ACCOUNT DUPONT CONSOLIDATED ITS ESTIMATED 40 MILLION WORLDWIDE LYCRA ACCOUNT WITH YOUNG & RUBICAM NEW YORK WHICH BESTED TWO OTHER NEW YORK CONTENDERS INTERPUBLIC GROUP'S MCCANNERICKSON AND SAATCHI & SAATCHI ADVERTISING OMNICOM GROUP'S BBDO THE INCUMBENT ON THE NORTH AMERICAN PORTION OF THE ACCOUNT DECLINED TO PARTICIPATE IN THE REVIEW BECAUSE OF A CONFLICTING CLIENT OVERSEAS SEIKO SEIKO CORP OF AMERICA A UNIT OF HATTORI SEIKO CO OF TOKYO HAS NARROWED ITS AGENCY REVIEW TO TWO NEW YORK FINALISTS AMMIRATI & PURIS AND OMNICOM GROUP'S DDB NEEDHAM SAATCHI & SAATCHI CO'S AC&R ADVERTISING INCUMBENT ON THE 10 MILLION ACCOUNT FOR 25 YEARS WAS ELIMINATED SEIKO SAID A FINAL CHOICE IS EXPECTED NEXT MONTH CNBC CNBC THE CABLE NETWORK OWNED BY GENERAL ELECTRIC CO'S NBC TAPPED KIRSHENBAUM & BOND NEW YORK AS ITS AD AGENCY NEW ADS ARE EXPECTED TO BE BROADCAST IN 1994 9310220086 931022 TECHNOLOGY BELLSOUTH AND SOUTHWESTERN PROFIT ROSE IN THE THIRD QUARTER NYNEX NET FELL BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL THREE LARGE REGIONAL TELEPHONE COMPANIES REPORTED MIXED THIRDQUARTER EARNINGS PARTLY REFLECTING ATTEMPTS TO CUT COSTS AS REGIONAL ECONOMIES GRADUALLY RECOVER ANALYSTS EXPECT EARNING REPORTS TO BE MORE OR LESS OVERSHADOWED BY ALLIANCES BETWEEN PHONE COMPANIES AND CABLE VENTURES AS THE BELLS SCRAMBLE FOR A FOOTHOLD IN THE EMERGING INTERACTIVE INDUSTRY HOWEVER REGIONAL PHONE COMPANIES ARE ALREADY FEELING THE PINCH OF COMPETITION IN MARKETS THEY HAVE LONG RULED MAINLY FROM ALTERNATIVE FIBEROPTIC CARRIERS AND ARE INCREASINGLY AGGRESSIVE IN THEIR ATTEMPTS TO KEEP OLD CUSTOMERS AND WIN NEW ONES AT THE SAME TIME THEY ARE SPARING LITTLE EFFORT TO EXPAND THEIR CELLULAR BUSINESS A LUCRATIVE REVENUE SOURCE WITH LARGELY UNTAPPED MARKETS THE ATLANTABASED COMPANY'S OPERATING PROFIT WHICH DOESN'T INCLUDE INTEREST AND TAX EXPENSES JUMPED 21 TO 9091 MILLION FROM 7508 MILLION THE COMPANY SAID IT CUT 623 JOBS IN ITS TELEPHONE OPERATIONS DURING THE THIRD QUARTER THE BABY BELL SAID CUSTOMER ACCESS LINES ROSE 34 WHILE VOICE MAIL CALLER ID AND CALLRETURN SERVICES ADDED TO REVENUE LONG DISTANCE ACCESS MINUTES ROSE 57 AND CELLULAR CUSTOMERS INCREASED 38 IN THE PAST YEAR REVENUE ROSE 75 TO 401 BILLION FROM 374 BILLION THE COMPANY IS ALSO REINING IN GENERAL AND SELLING COSTS WHICH FELL TO 8863 MILLION FROM 9326 MILLION THE PREVIOUS FIGURE INCLUDES SIGNIFICANT COSTS RELATED TO HURRICANE ANDREW EXCLUDING CHARGES PROFIT FOR THIS BABY BELL BASED IN SAN ANTONIO ROSE 11 TO 4558 MILLION OR 76 CENTS A SHARE FROM 4106 MILLION OR 68 CENTS A SHARE IN THE YEAREARLIER PERIOD SEVERE MIDWESTERN FLOODING HAD AFFECTED PARTS OF THE COMPANY'S SERVICE AREA RESULTING IN ONETIME EXPENSES THE COMPANY ALSO CONTINUED TO REVAMP ITS SOUTHWESTERN BELL TELEPHONE CO UNIT DURING THE QUARTER REVENUE ROSE 68 TO 280 BILLION FROM 262 BILLION HELPED BY THE COMPANY'S SURGING CELLULAR BUSINESS IN THE PAST 12 MONTHS 556000 CUSTOMERS WERE ADDED REPRESENTING A GROWTH RATE OF 455 ACCESS LINES AT THE PHONE UNIT GREW 35 EXCLUDING CHARGES RELATED TO TAXES AND DEBT RETIREMENT THE NEW YORK COMPANY REPORTED ESSENTIALLY FLAT EARNINGS REFLECTING THE PLODDING ECONOMY OF THE NORTHEAST CUSTOMER ACCESS LINES ROSE 27 WHILE CELLULAR CUSTOMERS GREW 347 OF ALL THE BABY BELLS NYNEX PROBABLY FACES THE MOST INTENSE COMPETITION FOR ITS CORE TELEPHONE BUSINESS MAINLY FROM ALTERNATIVE FIBEROPTIC CARRIERS REVENUE WAS FLAT AT 333 BILLION WHILE OPERATING EXPENSES FOR THE QUARTER FELL SLIGHTLY TO 268 BILLION FROM 271 BILLION IN THE YEAREARLIER PERIOD INCREASED CUSTOMER DEMAND MORE INTENSIVE MARKETING EFFORTS AND HIGHER TELEPHONE MAINTENANCE AND IMPROVEMENT OF TELEPHONE SERVICE ARE ADDING TO EXPENSES NYNEX SAID TELECOMMUNICATIONS OPERATING EXPENSES ARE LIKELY TO INCREASE IN THE FOURTH QUARTER BECAUSE OF ATTEMPTS TO IMPROVE SERVICE QUALITY 9310220085 931022 RICH POT THE GAMBLING INDUSTRY RAKES IT IN AS CASINOS SPREAD ACROSS THE US BETTING BECOMES THE PASTIME OF CHOICE FOR MANY FOLKS REPLACING OTHER HOBBIES LITTLE TALK ABOUT PROBLEMS BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL MASHANTUCKET PEQUOT RESERVATION CONN IN THE CLAMOROUS STANDINGROOMONLY CROWD AT THE FOXWOODS CASINO LORI GOODMAN AND A GROUP OF FRIENDS HESITANTLY SURROUND ONE OF THE FEW IDLE SLOT MACHINES WHAT DO I DO THE 27YEAROLD DATA PROCESSOR ASKS AT HER FRIENDS' URGING SHE DROPS IN A DOLLAR COIN AND PULLS THE HANDLE NOTHING MATCHES SHE FROWNS BUT TRIES AGAIN THIS TIME THREE TRIPLE BARS LINE UP AND THE FOUR WOMEN BEGIN LEAPING UP AND DOWN AND SHRIEKING LIKE BEAUTYPAGEANT FINALISTS I WON I WON MS GOODMAN SQUEALS OVER THE DIN OF COINS CLANGING INTO THE MACHINE'S METAL TRAY I'VE NEVER EVEN DONE THIS BEFORE AND I WON AND THAT PURE AND SIMPLE IS THE LURE OF LEGAL GAMBLING A JUGGERNAUT ROLLING OVER THE LAND PEOPLE TRY IT THEY LIKE IT THEN CRAVE IT BOWLING ALLEYS AND MINIATUREGOLF COURSES BEWARE ON ANY OTHER WEEKEND MS GOODMAN EXPLAINS SHE MIGHT BE AT THE MOVIES OR AT THE MALL SHOPPING FOR CLOTHES OR EXPLORING THE DANCE CLUBS IN BOSTON WITH HER BOYFRIEND BUT HERE IN THE VERDANT WOODS WHERE THE MASHANTUCKET PEQUOT INDIAN TRIBE ONCE HUNTED DEER AN HOUR'S DRIVE FROM HARTFORD MS GOODMAN IS PART OF ONE OF THE FASTESTGROWING AND MOST POWERFUL FORCES IN THE LEISURE BUSINESS NEW GAMBLING CUSTOMERS HUNDREDS OF THOUSANDS OF THEM THE WAVE OF WAGERING STEMS FROM MUNICIPAL PENURY COMBINED WITH CHANGING MORALITY AMERICANS ARE SO EAGER TO GAMBLE THAT THEY ARE SHIFTING THEIR LEISURETIME EXPENDITURES LAST YEAR THEY SPENT MORE ON LEGAL GAMES OF CHANCE THAN ON MOVIE THEATERS BOOKS AMUSEMENT ATTRACTIONS AND RECORDED MUSIC COMBINED AN ESTIMATED 30 BILLION WAS LEGALLY WAGERED IN 1992 COMPARED WITH ABOUT 49 BILLION SPENT AT THE BOX OFFICE 88 BILLION ON BOOKS 65 BILLION ON ATTRACTIONS AND 9 BILLION FOR RECORDED MUSIC ACCORDING TO SOME WALL STREET AND INDUSTRY FORECASTS SPENDING ON GAMBLING WILL DOUBLE WITHIN A DECADE IF THERE WEREN'T MORE DEMAND THAN SUPPLY WE'D ALL BE DOING SOMETHING ELSE SAYS BRUCE TURNER CASINO ANALYST FOR RAYMOND JAMES & ASSOCIATES AS THE GAMBLING BOOM ROLLS ACROSS THE COUNTRY NOT EVERY MARKET STANDS TO WIN A PIECE OF THE POT ANALYSTS SAY GULF COAST RIVERBOAT MARKETS WILL EVENTUALLY GO THROUGH A SHAKEOUT AND ATLANTIC CITY NJ WHICH HAS ALREADY SEE CONNECTICUT IMPINGE ON ITS EAST COAST MONOPOLY MAY FACE MORE COMPETITION FROM PROPOSED FLOATING CASINOS IN PENNSYLVANIA RHODE ISLAND AND ELSEWHERE BUT IF THE STATES' FALL LEGISLATIVE AGENDAS ARE ANY INDICATION AMERICANS CAN EXPECT TO SEE EVEN MORE RIVERBOAT GAMBLING CARD CLUBS OFFTRACK BETTING PARLORS AND CASINOS IN THEIR OWN BACKYARDS THERE ARE ALSO LIKELY TO BE MORE INDIANRUN CASINOS WHICH REQUIRE STATE COMPACTS INSTEAD OF LEGISLATION IN WASHINGTON DC MAYOR SHARON PRATT KELLY HAS RAISED A RUCKUS BY PROPOSING CASINOS AS A MEANS OF FINANCING A 500 MILLION CONVENTION CENTER NEW ORLEANS NOT LAS VEGAS IS SLATED TO HAVE THE WORLD'S LARGEST CASINO AND RIVERBOAT CASINOS MAY SOON GRACE THE SITE OF THE BOSTON TEA PARTY AND THE WATERS NOT FAR FROM INDEPENDENCE HALL IN PHILADELPHIA ALL AREAS OF ENTERTAINMENT TEND TO DO WELL EVEN IN A RECESSION BECAUSE WE'RE A NATION OF ESCAPISTS SAYS HARRISON PRICE AN AMUSEMENTINDUSTRY CONSULTANT HE NOTES THAT OVER THE PAST DECADE THE GAMBLING INDUSTRY HAS HAD 10 AVERAGE YEARLY GROWTH IN PERCAPITA SPENDING AND 111 COMPOUNDED ANNUAL GROWTH IN GROSS REVENUE THERE AREN'T MANY BUSINESSES THAT CAN SAY THAT HE SAYS PERCAPITA WAGERING ROSE TO 11754 LAST YEAR FROM 4486 IN 1982 HE ADDS WITH SUCH DAZZLING RESULTS IT'S LITTLE WONDER THAT SIX MIDWESTERN AND SOUTHERN STATES HAVE LICENSED GAMBLING ON RIVERBOATS MANY OF THEM ANCHORED IN SOME OF THE NATION'S POOREST TOWNS ALONG THE MISSISSIPPI DELTA AS MANY AS 90 RIVERBOATS AND DOCKSIDE CASINOS COULD BE AFLOAT WITHIN TWO YEARS AS MORE THAN A DOZEN STATES FROM TEXAS TO RHODE ISLAND SEARCH FOR MORE JOBS AND REVENUE SOME 20 STATES NOW HAVE INDIAN GAMBLING RANGING FROM BINGO PARLORS TO CASINOS AS BIG AND GLAMOROUS AS THOSE IN NEVADA CONNECTICUT'S FOXWOODS CASINO WILL BE THE SINGLE LARGEST CONTRIBUTOR TO STATE TAX COFFERS THANKS TO ITS SLOT MACHINES THEY ALONE WILL PROVIDE THE STATE 113 MILLION THIS YEAR MINNESOTA WITH ITS NATIVE AMERICAN GAMBLING HALLS HAS MORE CASINOS THAN ATLANTIC CITY SOON IT MAY FEEL AS IF THERE ARE FEW PLACES TO ESCAPE GAMBLING AIRLINES ARE DEVELOPING HIGHTECH WAGERING WHILE ALOFT THROUGH SUCH DEVICES AS VIRGIN ATLANTIC'S SEATBACK VIDEO GAMES CABLE AND INTERACTIVE TELEVISION COMPANIES ARE PLANNING WAYS TO SEPARATE PEOPLE FROM THEIR MONEY VIA TELEVISION AND PHONE LINES IN SOME CITIES RACING FANS ALREADY CAN WAGER BY PHONE ON THEIR FAVORITE NAGS WHILE LOTTERIES AND OTHER GAMBLING OUTLETS ARE TRYING TO FIGURE OUT THE LOGISTICS OF ATHOME BETTING SOME OF THE RECENT SURGE IN GAMBLING'S POPULARITY CAN BE TRACED TO DEMOGRAPHICS AND BROADER SPENDING TRENDS THE POPULATION IS AGING NOTES DAVID WEISS RESEARCH DIRECTOR FOR DRI/MCGRAWHILL INC A LEXINGTON MASS ECONOMICS CONSULTANT WE HAVE A SMALLER POPULATION OF CHILDREN AND WE DO FEWER CHILDORIENTED THINGS THUS SPENDING ON BOOKS RISES WHILE THE RATE OF SPENDING ON TOYS DECLINES HE SAYS PEOPLE ALSO ARE LOOKING FOR PARTICIPANT AMUSEMENTS THAT AREN'T SO STRENUOUS INDEED WHILE LAS VEGAS LATELY HAS BEEN PUSHING FOR FAMILY BUSINESS OLDER AMERICANS ARE AN IMPORTANT ELEMENT IN THE CASINO BOOM WE CAN'T GO HIKING THROUGH THE NATIONAL PARKS SO EASILY ANYMORE SAYS JORDON MILLER WITH A LAUGH AS HE SITS WITH HIS WIFE DARLEEN PLAYING VIDEO POKER IN THE NORTHERN STAR A JOLIET ILL RIVERBOAT CASINO THE MILLERS WHO ARE APPROACHING RETIREMENT AGE ARE CONSIDERING MOVING TO LAS VEGAS TO ENJOY THE CLIMATE THEIR EXTENDED FAMILY AND THEIR NEW HOBBY I'M ONLY A 5 TO 10TABLE PLAYER BUT I ENJOY IT MR MILLER SAYS RECREATIONAL SPENDING HAS MORE THAN DOUBLED OVER THE PAST DECADE TO 319 BILLION FROM 154 BILLION ALTHOUGH IT HAS REMAINED RELATIVELY CONSISTENT AT ABOUT 7 TO 75 OF TOTAL CONSUMPTION LEGAL WAGERING HAS ROOM TO GROW SINCE IT CURRENTLY ACCOUNTS FOR LESS THAN 1 OF ANNUAL CONSUMER SPENDING OF 43 TRILLION THE GROWTH IN GAMBLING HAS BEEN CONCURRENT WITH SOCIETY'S CHANGE IN ATTITUDE WHICH HAS BEEN AS SWIFT AND BROAD AS THE SWEEP OF A CROUPIER'S STICK WITHIN A GENERATION GAMBLING HAS GONE FROM BEING A MASCULINE VICE TO MASSMARKET ENTERTAINMENT AND TODAY IT'S AN INDULGENCE OF ITS HISTORIC OPPONENTS CHURCH AND STATE IT HAS BEEN CHURCH AND CHARITY LAS VEGAS NIGHTS ALONG WITH STATE LOTTERIES THAT HAS LAID THE LEGAL GROUNDWORK FOR INDIAN TRIBES TO BROADEN THEIR GAMBLING OPERATIONS SOME SAY GAMBLING'S ALLURE DRAWS ON COMPLEX CULTURAL ISSUES SUCH AS AMERICANS' LOVE OF ADVENTURE PEOPLE TAKE RISKS THAT ARE SOMEHOW MEANINGFUL TO THEM SAYS MARI WOMACK A CULTURAL ANTHROPOLOGIST AT THE EXTENSION PROGRAM OF THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES GAMBLING IS A WAY OF TRYING TO BEAT THE SYSTEM TO GET A RISKTAKING HIGH WHILE PLAYING WITH IMPORTANT SYMBOLS OF EVERYDAY LIFE LIKE MONEY UNLIKE SCARY MOVIES ROLLER COASTERS AND OTHER ESCAPIST PURSUITS DR WOMACK NOTES GAMBLING HOLDS OUT THE CHANCE OF WINNING THE FINANCIAL MARKETS ALSO HAVE AN INCREASED STAKE IN GAMBLING MANIA WALL STREET'S BETTING FEVER RAGES ON WITH THE NUMBER OF GAMBLINGRELATED STOCKS FROM RIVERBOAT OPERATORS TO EQUIPMENT MANUFACTURERS LEAPING TO MORE THAN 50 FROM JUST 20 TWO YEARS AGO MORE INITIAL PUBLIC OFFERINGS ARE IN THE WORKS EXISTING COMPANIES CONTINUE TO JUMP INTO THE GAME INCLUDING SUCH DEEPPOCKETED PLAYERS AS ITT CORP'S SHERATON HOTEL CHAIN AND THE PRITZKER FAMILY'S HYATT HOTELS WHICH ARE SHOWING RENEWED INTEREST IN GAMBLING AFTER LYING LOW FOR SEVERAL YEARS BUT OBSERVERS WONDER IF THE END IS NEAR WHEN NEWCOMERS TO THE BUSINESS INCLUDE THE LIKES OF NONA MORELLI'S INC BETTER KNOWN FOR ITS PASTA AND ITALIAN FOOD AND LONE STAR CASINOS OF TEXAS WHICH QUIT THE VIRALTESTING BUSINESS FOR RIVERBOAT GAMBLING INDUSTRY BOOSTERS BELIEVE THAT CASINO GAMBLING WILL REMAIN A MAGNET FOR DOLLARS THAT OTHERWISE WOULD GO TO DIFFERENT AREAS OF CONSUMER SPENDING YOU CAN WEAR THE SAME PAIR OF PANTS FOR THREE MORE MONTHS OR POSTPONE BUYING A CAR FOR TWO OR THREE YEARS SAYS PHILIP SATRE PRESIDENT OF PROMUS COS OF MEMPHIS TENN BUT YOU REALLY CAN'T SUBSTITUTE MUCH FOR THE ACTION AND EXCITEMENT OF A CASINO COUNTLESS POTENTIAL CUSTOMERS HAVEN'T YET SET FOOT INSIDE A CASINO ONLY HALF OF ALL ADULT AMERICANS HAVE EVER TRIED THEIR LUCK AT A TABLE OR SLOT MACHINE ACCORDING TO A SURVEY BY HARRAH'S CASINO HOTELS A UNIT OF PROMUS DAILY HARRAH'S SLEEK NORTHERN STAR CRUISE VESSEL SLOWLY PUSHES THROUGH THE CAFE AU LAIT WATERS OF THE DES PLAINES RIVER OUTSIDE JOLIET ON BOARD ARE HUNDREDS OF GUESTS WHO PAY AN AVERAGE 12 FOR THE THREEHOUR RIDE AND A SHOT AT THE BOAT'S SLOT MACHINES AND GREEN FELT TABLES THIS IS LIKE MY FAMILY ROOM SAYS MARLENE SCHOLL OF SKOKIE ILL AS SHE FEEDS HALFDOLLARS INTO A SLOT MACHINE OBLIVIOUS TO THE SPECTACULAR RAIN CLOUDS AND THE PICTURESQUE RIVER TRAFFIC OUTSIDE SHE FONDLY RECALLS SEEING ELVIS IN CONCERT AT THE LAS VEGAS HILTON IN THE 1970S BUT SAYS SHE NEVER GAMBLED MUCH UNTIL SHE STARTED VISITING CASINOS WITH HER HUSBAND ROBERT NOW WE'VE GOTTEN GAMBLING FEVER SHE LAUGHS RATTLING OFF THE NAMES OF CASINOS IN ATLANTIC CITY LAS VEGAS IOWA AND ILLINOIS WE WON'T EVEN VACATION ANYWHERE THAT'S NOT CLOSE TO A CASINO SOME ARGUE THAT THE NEW VENUES SPRINGING UP ARE CREATING NEW CASINO CUSTOMERS BUT NOT NEW LEISURE SPENDERS THE RIVERBOATS DON'T NECESSARILY STIMULATE DEMAND FOR ENTERTAINMENT THEY REPLACE SOMETHING ELSE SAYS MARGO VIGNOLA A SALOMON BROTHERS ENTERTAINMENT ANALYST SHE CONTENDS THAT 100 SLIPPED INTO A SLOT IS 100 THAT WON'T BE SPENT ON DINING OUT OR A MOVIE NOT MONEY THAT WOULD HAVE GONE INTO A SAVINGS ACCOUNT IT'S A ZEROSUM GAME SHE SAYS OF LEISURE DOLLARS WHILE IT'S IMPOSSIBLE TO ASSESS WITH PRECISION THE EFFECTS OF MORE GAMBLING ON RESTAURANTS RETAILERS MOVIE HOUSES SPORTS ARENAS AND THE LIKE ECONOMIC DATA INDICATE THAT AT LEAST SOME AREAS OF LEISURE SPENDING HAVE DECLINED DURING THE GAMBLING BOOM DRI/MCGRAW'S FIGURES SHOW THAT BROAD PERCENTAGE DROPS IN RECREATIONAL SPENDING HAVE OCCURRED IN COMMERCIAL PARTICIPANT AMUSEMENTS THAT IS BOWLING BILLIARDS TENNIS CLUBS AND THE LIKE NOT ALL AREAS OF LEGAL WAGERING HAVE THRIVED EITHER AS CASINOSTYLE GAMBLING HAS EXPLODED AND LOTTERIES HAVE MATURED PARIMUTUEL WAGERING HORSE AND DOGRACING TRACKS BINGO AND OTHER FORMS OF BETTING HAVE WANED IN POPULARITY WHY GO TO THE TRACK WHEN YOU CAN COME HERE INSTEAD ASKS BROOKLYN RESIDENT JOE DELUCA AS HE TAKES A BREAK FROM THE TABLES AT TROPWORLD CASINO IN ATLANTIC CITY ONCE A DEVOTED RAILBIRD HE SAYS HE PREFERS THE CASINOS YOU'VE GOT FOOD YOU'VE GOT DIFFERENT GAMES AND WHEN YOU'RE BROKE YOU CAN ALWAYS GO WATCH THE OCEAN HE SAYS WITH AN EYE TO ATTRACTING EVEN MORE CUSTOMERS BIG GAMBLING COMPANIES ARE BEGINNING TO BLUR THE LINES BETWEEN WAGERING AND MASS ENTERTAINMENT BY TAPPING ELEMENTS OF AMUSEMENT ARCADES RETAILING THEME PARKS HIGHTECH FILM AND ZOOS NOWHERE IS THIS CONVERGENCE MORE PRONOUNCED THAN IN LAS VEGAS WHICH ONCE AGAIN IS UNDERGOING A BUILDING BOOM THREE ENORMOUS NEW RESORTS WILL MAKE THEIR DEBUT BY THE END OF THE YEAR ADDING 10500 HOTEL ROOMS MORE THAN THERE ARE IN ALL OF TUCSON ARIZ THERE WILL ALSO BE AN ADDITIONAL 8 1/4 ACRES OF CASINO SPACE A THEME PARK AT THE MGM GRAND CUTTINGEDGE INTERACTIVE ATTRACTIONS AT THE LUXOR PYRAMIDSHAPED CASINO AND A MANMADE LAGOON AT THE TREASURE ISLAND WHERE DUELING GALLEONS WILL SHOOT IT OUT ALONG THE VEGAS STRIP CIRCUS CIRCUS ENTERPRISES INC MIRAGE RESORTS MGM GRAND INC ITT AND OTHER BIG PLAYERS ARE BETTING BILLIONS THAT LAS VEGAS WILL REMAIN THE PREMIER GAMBLING DESTINATION EVEN AS THEY GO TOE TO TOE IN EMERGING MARKETS THE REASONS ARE CLEAR AN ESTIMATED 224 MILLION VISITORS WILL TREK ACROSS THE DESERT THIS YEAR ABOUT A QUARTER OF WHOM WILL BE SEEING THE CITY FOR THE FIRST TIME SOME ARGUE THAT THE BUILDUP SHOULD SERVE AS A WAKEUP CALL TO HOLLYWOOD WHEN YOU LOOK AT THE LUXORS OF THE WORLD THEY'RE STRIKING AT THE VERY CORE OF WALT DISNEY CO'S MARKET SAYS MS VIGNOLA OF SALOMON BROTHERS IN THE PELLMELL RUSH SEEDS OF POTENTIAL PROBLEMS ARE BEING PLANTED ISSUES SUCH AS COMPULSIVE GAMBLING AND UNDERAGE GAMBLING ARE MOSTLY IGNORED OF THE 48 STATES THAT ALLOW SOME FORM OF WAGERING TEXAS IS NEARLY ALONE IN ALLOCATING A SMALL PERCENTAGE OF GAMING REVENUE TO RESEARCH INTO RELATED SOCIAL PROBLEMS AND ISSUES SUCH AS GAMBLING ATTRACTING CRIME AND CORRUPTION CONTINUE TO HOVER ON THE FRINGES OF PUBLIC DEBATE LIKE AN UNINVITED PARTY GUEST THIS MONTH JIM MOODY HEAD OF THE FEDERAL BUREAU OF INVESTIGATION'S ORGANIZED CRIME SECTION TOLD A HOUSE SUBCOMMITTEE THAT STATES WITH STRONG REGULATIONS AND ENFORCEMENT ARE NOT EXPERIENCING AN INFLUX OF ORGANIZED CRIME ACTIVITY HOWEVER WE EXPECT THAT STATES WITH POOR REGULATIONS AND CONTROLS MAY EXPERIENCE SUCH AN INFLUX FOR NOW ANY DOUBTS ARE BEING DROWNED OUT BY THE SOUNDS OF MONEY POURING OUT OF POCKETS RETIREE EDWARD PERRY OF PROVIDENCE RI PUTS POLICY CONCERNS INTO PERSPECTIVE AS HE SITS IN FRONT OF THE MASHANTUCKET PEQUOT CASINO WAITING FOR HIS RIDE HOME GAMBLING IS A BIG BUSINESS THE 77YEAROLD EXPLAINS AND ANYONE WHO THINKS IT'S SUNDAY SCHOOL IS A FOOL YOU DON'T ALWAYS COME HERE EXPECTING TO WIN HE SAYS WITH A DISMISSIVE WAVE OF HIS HAND IF YOU'RE GOING TO CRY STAY HOME LONE STAR CASINO CORP'S FORMER CORPORATE PARENT VIRAL TESTING SYSTEMS CORP REMAINS INVOLVED IN MEDICAL DIAGNOSTICS A PAGEONE ARTICLE FRIDAY SAID LONE STAR CASINO HAD QUIT THE VIRALTESTING BUSINESS FOR RIVERBOAT GAMBLING ALSO IN THE ARTICLE THE NAME OF DRI/MCGRAWHILL RESEARCH DIRECTOR DAVID WYSS WAS MISSPELLED 9310220084 931022 CANADA NATIVES ARE COURTED BY BANKS LURED BY CASH FROM LANDCLAIM PACTS BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CANADA'S ABORIGINAL BANDS EXPECT A WINDFALL IN THE NEXT FEW YEARS FROM THE SETTLEMENT OF LANDCLAIM DISPUTES AND THE NATION'S BIG BANKS ARE VYING TO SHOW THE NATIVES HOW TO SPEND IT NATIVE GROUPS WHICH COMPLAIN THEY LONG HAVE BEEN IGNORED BY CANADA'S TRADITIONAL BANKING ESTABLISHMENT NOW ARE HAVING INVESTMENT ADVICE THRUST ON THEM SOME BAND COUNCILS ARE FINDING THEY CAN PICK AND CHOOSE AMONG POTENTIAL LENDERS MEANWHILE SOME BANKS EAGER TO CURRY GOODWILL HAVE SET UP NATIVE SCHOLARSHIP FUNDS AND ONE FOR EXAMPLE SPONSORED A LUNCH WITH NATIVE LEADERS OFFERING CARIBOU MEATBALLS AND SEAL BLUBBER THE CANADIAN GOVERNMENT ALREADY HAS PROMISED TO PAY SOME TWO BILLION CANADIAN DOLLARS US152 BILLION TO SETTLE LANDCLAIM DISPUTES WHICH RESULT BECAUSE EARLY EUROPEAN SETTLERS IN CANADA SIGNED FEW TREATIES WITH THE NATIVE PEOPLES BY THE END OF THE DECADE SETTLEMENTS LIKELY WILL REACH C6 BILLION OR MORE AND ABORIGINALS ARE EXPECTED TO OWN OR CONTROL NEARLY A THIRD OF THE COUNTRY'S LAND MASS FOR INSTANCE OWNERSHIP OF MOST OF THE PROVINCE OF BRITISH COLUMBIA IS IN DISPUTE AS IS THE LAND UNDER CANADA'S PARLIAMENT BUILDINGS IN OTTAWA TO IGNORE THAT IS NOT VERY ASTUTE SAID RON JAMIESON VICE PRESIDENT OF ABORIGINAL BANKING FOR BANK OF MONTREAL THE BANKS' DRIVE FOR NATIVE BUSINESS ALSO REFLECTS THEIR SEARCH FOR NEW REVENUE STREAMS IN TODAY'S SLOW LENDING ENVIRONMENT CANADA'S ONE MILLION ABORIGINALS REPRESENTING ABOUT 4 OF THE COUNTRY'S TOTAL POPULATION ARE A RELATIVELY UNTAPPED SOURCE OF BUSINESS THESE FOLKS ARE GENERALLY NOT THE CUSTOMERS OF ANY OF THE BANKS MR JAMIESON SAID BANK OF MONTREAL IS PROBABLY THE MOST AGGRESSIVE OF THE CANADIAN BANKS IN COURTING NATIVE BUSINESS IT SET UP ITS ABORIGINAL BANKING UNIT A YEAR AGO LED BY MR JAMIESON A MOHAWK WHO LIVES ON A NATIVE RESERVE NEAR TORONTO THE BANK SO FAR HAS FOUR BRANCHES ON THE RESERVES AND PLANS TO ADD SEVEN MORE IN ITS LATEST MOVE BANK OF MONTREAL THIS WEEK SIGNED AN C876 MILLION LOAN AGREEMENT WITH THE INUVIALUIT REGIONAL CORP A NATIVEOWNED DEVELOPMENT CONCERN FOR THE INUVIALUIT BAND WHICH HAS 5000 MEMBERS IN CANADA'S WESTERN ARCTIC THE LOAN BELIEVED TO BE THE LARGEST YET TO A NATIVE GROUP IS SECURED BY FUTURE CASH FLOW AS THE BAND RECEIVES PROCEEDS FROM THE FEDERAL GOVERNMENT ON A C170 MILLION LAND CLAIM SETTLEMENT MR JAMIESON SAID BANKS HAVE TO WORK TO REGAIN THE TRUST OF ABORIGINALS AFTER VIRTUALLY IGNORING THEM FOR DECADES HISTORICALLY ABORIGINAL GROUPS DIDN'T HAVE ACCESS TO CASH OR CAPITAL WE'RE PERCEIVED AS NOT BEING BUSINESSMINDED SAID ROGER GRUBEN CHAIRMAN OF INUVIALUIT REGIONAL STILL HE SAID DESPITE THE BANKS' INCREASED INTEREST NATIVE GROUPS HAVE A LONG WAY TO GO TO DEVELOP THEIR LOCAL ECONOMIES PROCEEDS FROM THE LOAN WILL BE USED FOR INFRASTRUCTURE PROJECTS INCLUDING ROAD AND AIR TRANSPORT AND FOR EXPANSION OF THE INUVIALUIT OIL AND GAS PRODUCTION COMPANY HE SAID PART OF THE MONEY ALSO WILL BE INVESTED MAINLY IN ASIA OTHER BANKS TOO ARE TRYING TO DRUM UP BUSINESS WITH NATIVE GROUPS BANK OF NOVA SCOTIA FOR ONE SENDS TEAMS OF ADVISERS TO RESERVES IN WESTERN CANADA OFFERING PROPOSALS FOR HOW TO MANAGE THE BANDS' INVESTMENTS WE EXPECT NATIVE GROUPS WILL NEED INVESTMENT MANAGEMENT SERVICES IN THE FUTURE MAINLY BECAUSE OF THE PENDING LAND CLAIM SETTLEMENTS WE WANT TO BE THE PROVIDER OF THOSE SERVICES SAID A BANK SPOKESWOMAN 9310220083 931022 NET AT UNITED TECHNOLOGIES JUMPS BY 25 RESULTS FOR THIRD QUARTER EQUAL TO 108 A SHARE TOP ANALYSTS' FORECAST BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL UNITED TECHNOLOGIES CORP'S THIRDQUARTER PROFIT JUMPED 25 TO 157 MILLION REVERSING A STRING OF QUARTERLY LOSSES OR DEPRESSED EARNINGS THE PROFIT WHICH AMOUNTED TO 108 A SHARE WAS BETTER THAN WALL STREET ANALYSTS' CONSENSUS ESTIMATE OF 103 COMPILED BY ZACKS INVESTMENT RESEARCH A YEAR EARLIER THE HARTFORD CONN COMPANY EARNED 126 MILLION OR 87 CENTS A SHARE REVENUE DECLINED SLIGHTLY TO 51 BILLION FROM 54 BILLION ANALYSTS SAID THE TURNAROUND REFLECTED COSTCUTTING PROGRAMS INSTITUTED EARLY LAST YEAR THE MANAGEMENT HAS REACTED AGGRESSIVELY TO TOUGH TIMES IN ITS CORE BUSINESSES SAID STEVE BINDER AN ANALYST AT BEAR STEARNS & CO HE SAID HE EXPECTS THE COST CUTS TO FURTHER IMPROVE PROFIT MARGINS IN COMING QUARTERS THE MAKER OF AIRCRAFT ENGINES ELEVATORS AUTOMOTIVE PARTS AND HEATING AND COOLING SYSTEMS SAID ALL ITS MAJOR BUSINESSES POSTED DOUBLEDIGIT EARNINGS IMPROVEMENT EXCEPT FOR AUTOMOTIVE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE STOCK CLOSED AT 5875 DOWN 375 CENTS THE EARNINGS ANNOUNCEMENT CAME AFTER THE MARKET'S CLOSE ROBERT F DANIELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID CASH FLOW FROM OPERATIONS ROSE SHARPLY TO 870 MILLION IN THE FIRST NINE MONTHS FROM 447 MILLION IN THE 1992 PERIOD MR DANIELL SAID THE LATEST EARNINGS ARE RIGHT ON TARGET FOR THE YEAR HE DECLINED TO PREDICT THE 1993 PROFIT BUT SAID HE WAS COMFORTABLE WITH THE RANGE OF 315 TO 335 A SHARE ESTIMATED BY ANALYSTS HE SAID OPERATING PROFIT AS A PERCENTAGE OF REVENUE WAS 75 IN THE THIRD QUARTER COMPARED WITH 67 A YEAR AGO THE COMPANY CONTINUES TO DRIVE COSTS DOWN AND THE RESTRUCTURING SO FAR HAS REDUCED THE WORK FORCE BY 22450 EMPLOYEES OR 86 OF THE PLANNED REDUCTION OF 26100 EMPLOYEES BY 1995 HE SAID CURRENTLY IT HAS 173800 EMPLOYEES WORLDWIDE THE PRATT & WHITNEY JETENGINE UNIT HAD AN OPERATING PROFIT OF 60 MILLION IN THE JUSTENDED PERIOD UP FROM 43 MILLION LAST YEAR THE INCREASE WAS MOSTLY ON LOWER OPERATING COSTS AND REDUCED RESEARCH AND DEVELOPMENT SPENDING SALES OF SPARE PARTS FOR COMMERCIAL ENGINES ONE OF THE MOST PROFITABLE SEGMENT OF THE JET ENGINE BUSINESS WEREN'T MUCH DIFFERENT FROM THAT IN THE 1992 THIRD QUARTER THE ORDER RATE FOR SPARE PARTS IN THE QUARTER WAS 135 MILLION A MONTH UP 50 FROM THE DEPRESSED LEVELS OF THE YEARAGO PERIOD THE OTIS UNIT WHICH MAKES ELEVATORS POSTED AN OPERATING PROFIT OF 100 MILLION UP FROM 78 MILLION CARRIER CORP WHICH MAKES AIR CONDITIONING AND HEATING SYSTEMS EARNED 114 MILLION VS 82 MILLION LAST YEAR THE AUTOMOTIVE BUSINESS HAD AN OPERATING PROFIT OF 21 MILLION COMPARED WITH 40 MILLION LAST YEAR WHEN IT HAD A ONETIME GAIN OF ABOUT 20 MILLION FROM THE DIVESTITURE OF A NONCORE BUSINESS IN THE NINE MONTHS EARNINGS WERE 351 MILLION OR 240 A SHARE COMPARED WITH 368 MILLION OR 273 A SHARE A YEAR EARLIER BEFORE CERTAIN ACCOUNTING CHANGES REVENUE WAS 156 BILLION COMPARED WITH 163 BILLION 9310220082 931022 GM UAW TO CONTINUE CONTRACT TALKS WITHOUT ANY STRIKE DEADLINE BY UNION BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE UNITED AUTO WORKERS UNION CITING MEANINGFUL PROGRESS IN CONTRACT TALKS WITH GENERAL MOTORS CORP SAID IT WOULD CONTINUE NEGOTIATING TODAY WITHOUT SETTING A STRIKE DEADLINE THERE IS NO QUESTION THEY WANT THIS SETTLEMENT AS MUCH AS WE DO UAW PRESIDENT OWEN BIEBER TOLD 400 LOCAL UNION LEADERS FROM AROUND THE COUNTRY YESTERDAY WE NEED SOME MORE TIME AND I'M NOT GOING TO SUGGEST TO YOU THIS MORNING IF IT'S 24 HOURS OR 48 HOURS UAW AND GM NEGOTIATORS BARGAINED AROUND THE CLOCK WEDNESDAY NIGHT IN AN UNSUCCESSFUL EFFORT TO REACH A TENTATIVE AGREEMENT BEFORE YESTERDAY'S UNION MEETING AT THE MEETING WHICH WAS CLOSED TO THE PRESS THE UNION'S GM COUNCIL UNANIMOUSLY GAVE MR BIEBER THE GOAHEAD TO RESUME NEGOTIATIONS THIS MORNING STILL IN A TAPE OF HIS SPEECH MADE AVAILABLE BY A LOCAL UNION OFFICIAL MR BIEBER INDICATED THAT THE UNION COULD STRIKE IF TALKS BROKE DOWN WE MAY STILL HAVE A HELL OF A BATTLE ON OUR HANDS HE WARNED MR BIEBER TOLD LOCAL UNION LEADERS THAT TWO BIG UNRESOLVED ISSUES WERE PENSIONS AND THE TREATMENT OF LAIDOFF WORKERS BUT HE GAVE LITTLE DETAIL ACCORDING TO COMPANY AND UNION OFFICIALS GM HAS PROPOSED LUMPSUM PAYMENTS TO RETIRED WORKERS IN LIEU OF THE HEFTY PENSION INCREASES ALREADY NEGOTIATED AT FORD MOTOR CO IN THE AREA OF JOB AND INCOME SECURITY GM IS LOOKING FOR MORE FREEDOM TO TRANSFER LAIDOFF WORKERS STILL RECEIVING VIRTUALLY FULL PAY TO OTHER PLANTS MUCH HAS BEEN ACCOMPLISHED IN THESE VERY TOUGH AND VERY COMPLEX NEGOTIATIONS MR BIEBER AND STEPHEN P YOKICH THE UAW'S TOP GM NEGOTIATOR SAID IN A STATEMENT YESTERDAY AND WE ARE COMMITTED TO STAYING WITH THE PROCESS AS LONG AS MEANINGFUL PROGRESS IS BEING MADE TOWARD FINAL SETTLEMENT OF A NEW AGREEMENT GM HAD NO PUBLIC COMMENT ON THE UAW STATEMENT BUT COMPANY OFFICIALS ALSO SAY THEY'RE MAKING PROGRESS IN NEGOTIATIONS LOCAL UNION LEADERS EXPRESSED FRUSTRATION WITH THE SLOW PACE OF GM TALKS BUT SAID THEY BACKED MR BIEBER'S STRATEGY OF NOT FORCING THE ISSUE THROUGH A STRIKE DEADLINE EVERYBODY IS ANXIOUS TO GET THIS BEHIND US SAID JERRY CLIFTON SHOP CHAIRMAN OF THE RECENTLY CLOSED GM ASSEMBLY PLANT IN YPSILANTI MICH BUT I'D RATHER WE DO SOMETHING RIGHT THAN RUSH TO GET IT DONE 9310220081 931022 BUSINESS BRIEF TANDY CORP SHARES JUMP AS EARNINGS PROVE BETTER THAN EXPECTED TANDY CORP SHARES ROSE SHARPLY ON BETTERTHANEXPECTED EARNINGS CLOSING AT 4050 UP 4875 IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE FORT WORTH TEXAS CONSUMER ELECTRONICS RETAILER SAID NET INCOME FOR ITS THIRD QUARTER ROSE 32 TO 426 MILLION OR 52 CENTS A SHARE FROM 321 MILLION OR 40 CENTS A SHARE THE YEARAGO RESULTS INCLUDE A LOSS OF 69 MILLION OR NINE CENTS A SHARE FROM THE DIVESTITURE OF VARIOUS MANUFACTURING OPERATIONS WALL STREET ESTIMATES HAD HOVERED AT 50 CENTS FOR THE QUARTER SALES AND OPERATING REVENUE FOR THE QUARTER ROSE 7 TO 9399 MILLION FROM 8758 MILLION A YEAR AGO RETAIL SALES ROSE 17 MOSTLY ON STRONG PERFORMANCES AT NEW INCREDIBLE UNIVERSE AND COMPUTER CITY SUPERSTORES SALES AT COMPUTER CITY STORES OPEN A YEAR OR MORE ROSE 40 IN THE QUARTER COMPARED WITH 6 TO 7 GAINS AT THE FLAGSHIP RADIO SHACK STORES 9310220080 931022 BANKAMERICA TO CUT PRICE IN SALE OF UNIT TO MALAYSIAN GROUP KUALA LUMPUR MALAYSIA BANKAMERICA CORP AGREED WITH FINANCIAL MAGNATE TAN SRI AZMAN HASHIM AND HIS ARABMALAYSIAN GROUP OF COMPANIES ON A REVISED SALE PRICE FOR THE US BANK'S SECURITY PACIFIC ASIAN BANK UNIT IN MALAYSIA PEOPLE CLOSE TO THE TRANSACTION SAID MALAYSIAN EXECUTIVES AND SECURITIES ANALYSTS FAMILIAR WITH THE NEGOTIATIONS SAID TAN SRI AZMAN AND THE ARABMALAYSIAN GROUP HAVE AGREED TO PAY ABOUT 85 MILLION MALAYSIAN DOLLARS US33 MILLION FOR FULL OWNERSHIP OF THE ONEBRANCH COMMERCIAL BANK THAT'S ABOUT 18 LESS THAN THE M104 MILLION SALE PRICE SUBMITTED TO BANK NEGARA MALAYSIA'S CENTRAL BANK FOR APPROVAL LAST JUNE INCLUDING A PREMIUM FOR SECURITY PACIFIC'S MALAYSIAN BANKING LICENSE THE EXECUTIVES AND ANALYSTS SAID THEY EXPECT THAT THE DEAL WILL BE COMPLETED SOON BUT THAT IT WOULD HAVE GONE THROUGH SEVERAL MONTHS AGO IF NOT FOR THE INTERVENTION OF BANK NEGARA WHILE THE CENTRAL BANK APPROVED THE SALE IN PRINCIPLE SOON AFTER THE PROPOSAL WAS SUBMITTED IT BALKED AT THE PRICE PEOPLE FAMILIAR WITH THE TRANSACTION NOTED THAT BANK NEGARA MAY PUSH FOR AN EVEN LOWER PRICE BEFORE IT GRANTS ITS FINAL APPROVAL FOR BANKAMERICA THE DEAL WILL END MONTHS OF DIFFICULT NEGOTIATIONS AND YIELD A TIDY SUM FROM THE SALE OF A PROFITABLE UNIT THAT WAS IN JEOPARDY OF BEING TAKEN AWAY BY MALAYSIA'S BANKING AUTHORITIES MORE GENERALLY IT WOULD MARK THE FIRST PURCHASE BY MALAYSIAN INTERESTS OF A CONTROLLING STAKE IN THE LOCAL BRANCH OF A FOREIGNOWNED COMMERCIAL BANK UNDER MALAYSIA'S BANKING AND FINANCIAL INSTITUTIONS ACT ALL FOREIGN BANKS IN THE COUNTRY MUST LOCALLY INCORPORATE THEIR MALAYSIAN OPERATIONS BY SEPTEMBER 1994 WHILE FOREIGN INSTITUTIONS AREN'T OBLIGATED TO DIVEST STAKES IN THEIR LOCAL OPERATIONS TO MALAYSIAN INTERESTS THEY WON'T BE PERMITTED TO OPEN ADDITIONAL BRANCHES OR RECEIVE BENEFITS ACCORDED TO LOCAL INSTITUTIONS UNLESS THEY RELINQUISH AT LEAST 51 OF THEIR UNITS TO LOCAL PARTIES MALAYSIA'S FINANCIAL AUTHORITIES HAVE SAID THAT THEIR AIM IS TO REDUCE THE OVERALL NUMBER OF BANK LICENSES THAT IMPLICIT FREEZE ON NEW LICENSES ACCOUNTS IN PART FOR THE PREMIUM DEMANDED BY BANKAMERICA FOR THE SECURITY PACIFIC BRANCH AND THE WILLINGNESS OF MALAYSIAN INVESTORS TO PAY IT MALAYSIA HAS 23 LOCAL COMMERCIAL BANKS AND 16 FOREIGNBANK BRANCHES 9310220079 931022 BURLINGTON CSX PROFITS FALL IN PART BECAUSE OF FLOODING NEW YORK SEVERE FLOODING IN THE MIDWEST AND AN INCREASE IN CORPORATETAX RATES CUT THE EARNINGS OF RAILROAD COMPANIES CSX CORP AND BURLINGTON NORTHERN INC BOTH REPORTED THIRDQUARTER PROFITS THAT WERE LESS THAN HALF YEAREARLIER EARNINGS THE SUMMER'S FLOODS HIT BURLINGTON PARTICULARLY HARD THE FORT WORTH TEXAS COMPANY POSTED A 61 DECLINE IN EARNINGS TO 24 MILLION OR 21 CENTS A SHARE FROM A YEAREARLIER 61 MILLION OR 68 CENTS A SHARE THE FLOODS TRIMMED ABOUT 49 MILLION OR 55 CENTS A SHARE FROM THIRDQUARTER FIGURES BURLINGTON SAID WHILE CHARGES RELATED TO THE NEW CORPORATETAX LAW ACCOUNTED FOR 29 MILLION OR 32 CENTS PER SHARE REVENUE FELL SLIGHTLY TO 114 BILLION FROM A YEAREARLIER 115 BILLION CSX RICHMOND VA REPORTED A 51 DECLINE IN EARNINGS TO 63 MILLION OR 61 CENTS A SHARE FROM A YEAREARLIER 128 MILLION OR 125 A SHARE CSX'S THIRDQUARTER FIGURES ALSO INCLUDE A NONCASH CHARGE OF 54 MILLION RELATED TO TAX INCREASES THE COMPANY SAID FLOODING WEIGHED ON RESULTS THE CSX SAID AS DID A STRIKE BY MINE WORKERS THAT HALTED OR CURTAILED PRODUCTION IN ITS RAIL UNIT CSX REVENUE ROSE MODERATELY TO 224 BILLION FROM A YEAREARLIER 221 BILLION 9310220078 931022 TECHNOLOGY SCHERING PROFIT RISES IN QUARTER RHONE'S FALLS BY LOURDES LEE VALERIANO STAFF REPORTER OF THE WALL STREET JOURNAL CURRENCYEXCHANGE RATES CAST A PALL OVER THE THIRDQUARTER RESULTS OF SCHERINGPLOUGH CORP WHICH STILL MANAGED TO POST A 14 PROFIT GAIN AND RHONEPOULENC RORER INC WHOSE NET DROPPED 22 SCHERINGPLOUGH OF MADISON NJ EARNED 1994 MILLION OR 103 A SHARE IN THE QUARTER COMPARED WITH 1745 MILLION OR 88 CENTS A SHARE IN THE YEARAGO PERIOD SALES GREW 4 TO 106 BILLION FROM 102 BILLION EXCLUDING THE EFFECT OF FOREIGNEXCHANGE RATES SALES WOULD HAVE RISEN 8 SCHERINGPLOUGH SAID US SALES OF PRESCRIPTION PHARMACEUTICALS ROSE 8 IN THE QUARTER A STRONG PERFORMER WAS CLARITIN AN ANTIHISTAMINE UNVEILED IN APRIL SALES OF WHICH TOTALED 42 MILLION IN THE QUARTER INTERNATIONAL SALES ROSE 1 EXCLUDING THE FOREIGNEXCHANGE IMPACT SALES WOULD HAVE RISEN 9 MEANWHILE RHONEPOULENC WHICH HAS ITS US HEADQUARTERS IN COLLEGEVILLE PA POSTED EARNINGS OF 71 MILLION OR 51 CENTS A SHARE DOWN FROM 906 MILLION OR 66 CENTS A SHARE THE LATEST QUARTER INCLUDED A 27 MILLION OR 13 CENTSASHARE PRETAX CHARGE FOR ACQUIRED RESEARCH AND DEVELOPMENT COSTS STEMMING FROM A PREVIOUSLY ANNOUNCED PURCHASE OF A 37 STAKE IN APPLIED IMMUNE SCIENCES INC RESULTS IN BOTH PERIODS ALSO INCLUDED GAINS FROM THE SALE OF CERTAIN PRODUCT RIGHTS AMOUNTING TO TWO CENTS A SHARE IN THE LATEST QUARTER AND FOUR CENTS A SHARE IN 1992 SALES DROPPED 8 TO 9601 MILLION FROM 105 BILLION EXCLUDING THE CURRENCYRATE IMPACT AND DIVESTED PRODUCTS SALES WOULD HAVE GROWN 3 RHONEPOULENC SAID IT IS EVALUATING A FURTHER STREAMLINING OF ITS OPERATIONS BECAUSE OF LEGISLATIVE MOVES TO CUT HEALTHCARE COSTS IN SEVERAL MARKETS BUT IT SAID IT PLANS TO INCREASE ITS INVESTMENT IN INNOVATIVE R&D PROGRAMS THE COMPANY ALSO SAID IT WILL CURTAIL YEAREND TRADE INCENTIVES THE COMMON PRACTICE PARTICULARLY IN THE US OF OFFERING WHOLESALE AND RETAIL CUSTOMERS EXTENDED PAYMENT TERMS AND THE OPPORTUNITY TO BUY AHEAD OF YEAREND PRICE INCREASES IN VIEW OF THE TRADE'S INVENTORYREDUCTION EFFORTS SMALLER PRICE INCREASES AND FORTHCOMING HEALTHCARE REFORM WE HAVE DETERMINED THAT THESE PRACTICES ARE NO LONGER IN SHAREHOLDERS' BEST INTERESTS SAID ROBERT E CAWTHORN CHAIRMAN AND CHIEF EXECUTIVE 9310220077 931022 QVC TO OFFER CASH FOR 51 OF PARAMOUNT BID OF 48 BILLION IS PART OF TWOTIER' STRATEGY IN TAKEOVER STRUGGLE BY JOHNNIE L ROBERTS AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL STEPPING UP PRESSURE ON PARAMOUNT COMMUNICATIONS INC TO CONSIDER ITS 95 BILLION HOSTILE BID QVC NETWORK INC ANNOUNCED IT PLANS A CASH TENDER OFFER FOR 51 OF PARAMOUNT'S STOCK AT 80 A SHARE IN A TWOTIER TAKEOVER STRATEGY QVC SAID ITS 48 BILLION CASH OFFER WOULD BE FOLLOWED BY THE ACQUISITION OF THE REMAINING 49 OF PARAMOUNT FOR QVC STOCK VALUED AT 8071 A SHARE THE TACTIC MARKS A THROWBACK TO THE MERGER BATTLES OF THE 1980S WHEN TWOTIER OFFERS WERE USED TO PRESSURE TARGET COMPANIES INTO SURRENDERING QVC ALSO SAID IT YESTERDAY SUED PARAMOUNT AND RIVAL BIDDER VIACOM INC IN DELAWARE STATE COURT TO INVALIDATE LOCKUP PROVISIONS IN THEIR FRIENDLY 76 BILLION MERGER AGREEMENT THAT WOULD GIVE VIACOM A 100 MILLION FEE PLUS A STOCK OPTION VALUED AT 260 MILLION IF PARAMOUNT TAKES A HIGHER OFFER MEANWHILE THE JUSTICE DEPARTMENT GAVE THE VIACOMPARAMOUNT AGREEMENT ANTITRUST CLEARANCE REMOVING ONE POTENTIAL ROADBLOCK TO THE DEAL LAUNCHING A FORMAL TENDER OFFER WOULD ALLOW QVC A HOME SHOPPING CHANNEL LED BY CHAIRMAN BARRY DILLER TO ACCELERATE A SERIES OF GOVERNMENT APPROVALS THAT OTHERWISE WOULD REQUIRE COOPERATION OF PARAMOUNT'S BOARD TAKEOVER EXPERTS SAID VIACOM HAS A HEADSTART IN OBTAINING ITS OWN APPROVALS AND COULD USE THAT ADVANTAGE AT SOME POINT TO ARGUE THAT ITS BID IS MORE LIKELY TO BE COMPLETED MORE IMPORTANT THE OFFER WOULD BOOST SHAREHOLDER PRESSURE ON PARAMOUNT'S BOARD TO NEGOTIATE WITH QVC EVEN THOUGH IT HAS A FRIENDLY MERGER AGREEMENT IN PLACE WITH CABLE GIANT VIACOM VALUED AT 6408 A SHARE IN STOCK AND CASH THE QVC GROUP HAS JUST TAKEN A HUGE BULLDOZER AND LEVELED THE PLAYING FIELD AGAINST VIACOM SAID PETER SCHOENFELD VICE CHAIRMAN AND HEAD OF PROPRIETARY STOCK TRADING AT WERTHEIM SCHRODER & CO IT'S A VERY POWERFUL OFFER BECAUSE MR DILLER RAISED THE CASH THAT WILL BE OFFERED ADDED MONEY MANAGER MORRIS MARK A PARAMOUNT STOCKHOLDER EVEN AFTER LAUNCHING THE FORMAL OFFER QVC STILL CAN'T ACQUIRE PARAMOUNT SHARES UNLESS THE PARAMOUNT BOARD DROPS A POISONPILL ANTITAKEOVER DEVICE WHICH MAKES A HOSTILE ACQUISITION PROHIBITIVELY EXPENSIVE FOR THE ACQUIRER QVC CAN GO TO COURT TO FORCE PARAMOUNT TO DO SO BUT THAT COULD TAKE WEEKS OR MONTHS WITH THE OUTCOME UNCERTAIN GORDON CRAWFORD OF CAPITAL GROUP WHICHS OWNS ABOUT AN 8 PARAMOUNT STAKE EXPRESSED DISMAY AT PARAMOUNT'S RESPONSE THUS FAR TO QVC'S ORIGINAL OFFER A MONTH AGO AND VOWED TO PRESS THE COMPANY TO DITCH THE POISON PILL I'LL BE TALKING TO THEM HE SAID THE QVC BID IS DEMONSTRABLY SUPERIOR TO THE BID THAT IS CURRENTLY ON THE TABLE FROM VIACOM HANDS' DOWN HE ADDED I'M DELIGHTED THAT STOCKHOLDERS WILL GET A CHANCE TO INDICATE WHICH PROPOSAL THEY FIND MORE ATTRACTIVE INDEED ONE PERSON CLOSE TO QVC SAID THAT THE BID WHICH ISN'T EXPECTED TO BE MADE FORMALLY UNTIL WEDNESDAY COULD EVENTUALLY SERVE AS A REFERENDUM QUESTION ON THE TAKEOVER BATTLE BY ANNOUNCING THE PERCENTAGE OF PARAMOUNT STOCKHOLDERS WHO DELIVER THEIR SHARES TO QVC UNDER THE OFFER MR DILLER CAN ADD PRESSURE ON THE BOARD TO NEGOTIATE QVC HAD OFFERED PARAMOUNT STOCKHOLDERS 30 A SHARE IN CASH AND ABOUT 50 IN QVC STOCK THE NEW OFFER WOULD EFFECTIVELY BOOST THE CASH PORTION TO 40 OR 48 BILLION WHICH QVC OBTAINED IN THE PAST MONTH FROM A 3 BILLION BANK COMMITMENT AND 2 BILLION RAISED FROM FOUR OUTSIDE INVESTORS THROUGH THE SALE OF SECURITIES VIACOM'S OFFER INCLUDES 910 A SHARE IN CASH TRADING IN PARAMOUNT STOCK WAS HALTED YESTERDAY ON THE NEW YORK STOCK EXCHANGE SHORTLY AFTER THE FIRST REPORTS OF THE TENDER OFFER AT 250 PM EDT WITH THE LAST TRADE AT 76 UNCHANGED THE EXCHANGE SAID TRADING WOULDN'T RESUME UNTIL TODAY A SPOKESMAN FOR PARAMOUNT DECLINED TO COMMENT BUT A PERSON CLOSE TO THE ENTERTAINMENT AND PUBLISHING GIANT CRITICIZED THE DILLER TACTIC AS AN OLDFASHIONED FRONTLOADED TWOTIER COERCIVE TENDER OFFER HE ALSO CALLED IT A PUBLICRELATIONS STUNT A GRANDSTAND PLAY THE SAME PERSON SAID PARAMOUNT ADVISERS WERE ALREADY PLANNING ON STARTING INFORMATIONAL TALKS WITH QVC NEXT WEEK AND PROBABLY WILL GO AHEAD WITH THOSE PLANS THE PLANNED QVC OFFER COULD ALSO FORCE VIACOM CHAIRMAN SUMNER REDSTONE TO ACCELERATE ANY PLANS TO RAISE HIS OWN BID BECAUSE THE EXISTING MERGER AGREEMENT STANDS LITTLE CHANCE OF BEING SUBMITTED TO PARAMOUNT SHAREHOLDERS MUCH LESS APPROVED IN A STATEMENT YESTERDAY MR DILLER CRITICIZED PARAMOUNT FOR REFUSING TO MEET INCREDIBLY IN LIGHT OF VIACOM'S REFUSAL TO IMPROVE ITS OFFER THE ONLY ACTIONS TAKEN BY PARAMOUNT MANAGEMENT AND ITS BOARD OF DIRECTORS HAVE BEEN DESIGNED TO DEMEAN THE VALUE OF OUR COMPANY OR CREATE POTENTIAL REGULATORY OBSTACLES BUT THE PERSON CLOSE TO PARAMOUNT RESPONDED BY ACCUSING QVC OF FOOTDRAGGING IN RESPONDING TO PARAMOUNT'S REQUEST FOR INFORMATION THIS DOES NOT CHANGE ANYTHING AS FAR AS WE'RE CONCERNED BECAUSE WE HAVE BEEN COMMITTED TO GETTING THE BEST DEAL FOR SHAREHOLDERS THIS PERSON SAID BUT WE ARE NOT GOING TO ALLOW SHAREHOLDERS TO BE STAMPEDED INTO SOMETHING THAT MAY NOT REPRESENT THE BEST DEAL FOR THEM MARIO GABELLI WHOSE GABELLI FUNDS OWN A LARGE STAKE IN PARAMOUNT SAID THE NEW QVC BID WILL FOCUS ATTENTION ON WHETHER THE PARAMOUNT BOARD SHOULD DROP ITS POISON PILL AND PREDICTED THAT VIACOM WILL RESPOND BY RAISING ITS BID AND CONVERTING IT TO A SIMILAR TWOSTEP FORMAT IRONICALLY TWOSTEP CASHANDSTOCK BIDS WERE OFTEN CRITICIZED AS COERCIVE DURING THE 1980S BY MARTIN LIPTON THE TAKEOVER LAWYER FROM WACHTELL LIPTON ROSEN & KATZ WHO IS QUARTERBACKING QVC'S DEAL STRATEGY SUCH OFFERS CAN BE COERCIVE IF THEY INDUCE SHAREHOLDERS TO SELL THEIR STOCK TO MAKE SURE THEY GET IN ON THE CASH PORTION OF THE OFFER IF THEY DON'T THEY MAY BE FORCED TO ACCEPT SECURITIES WORTH LESS THAN THE CASH PRICE IF THE BIDDER COMPLETES THE TAKEOVER MR DILLER YESTERDAY SAID QVC'S STRATEGY WAS DESIGNED TO EMPOWER THE SHAREHOLDERS OF PARAMOUNT TO MAKE THEIR DISPLEASURE EVIDENT TO THEIR BOARD OF DIRECTORS APPEALING TO PARAMOUNT'S SENSE OF CORPORATE RESPONSIBILITY AND FAIRNESS MR DILLER SAID IN A STATEMENT THAT HE HOPED THE COMPANY WOULD CREATE A LEVEL PLAYING FIELD ACCORDING TO MR DILLER QVC ON WEDNESDAY MADE THE LATEST OF SEVERAL REQUESTS TO PARAMOUNT TO BEGIN NEGOTIATIONS THEY RESPONDED THEY WOULD BE IN TOUCH' HE SAID OUR PATIENCE HAS BEEN MISINTERPRETED AND IS NOW AT AN END MR DILLER NOTED THAT THE TENDER OFFER WOULD PROVIDE 36 BILLION MORE IN CASH THAN VIACOM'S AGREEMENT WHICH INCLUDES 11 BILLION OF CASH AT 80 A SHARE THE OVERALL VALUE OF THE PLANNED TENDER OFFER IS 25 GREATER THAN VIACOM'S OFFER OF 6419 WHAT UNDERLIES OUR DECISION TO COMMENCE A TENDER OFFER AND WHAT HAS BEEN OBSCURED OVER THE LAST FEW WEEKS IS THE SIGNIFICANT DIFFERENTIAL BETWEEN THE TOTAL VALUE AND CASH PORTIONS OF THE QVC AND VIACOM OFFERS HE SAID QVC'S ACTIONS RENEWED SPECULATION THAT A THIRD BIDDER MIGHT ENTER THE FRAY BELLSOUTH CORP DISCUSSED JOINING BOTH THE QVC AND VIACOM BIDS FOR PARAMOUNT BUT COULDN'T COME TO AN AGREEMENT THERE IS SPECULATION THAT THE REGIONAL TELEPHONE COMPANY MIGHT MOUNT ITS OWN BID OR JOIN ANOTHER GROUP IN A BID FOR PARAMOUNT BELLSOUTH COULDN'T BE REACHED TO COMMENT 9310220076 931022 HEARD ON THE STREET REAL ESTATE INVESTMENT TRUST SALES SKYROCKET BUT PORTFOLIO MANAGERS FLASH CAUTION LIGHTS BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK YIELDHUNGRY INVESTORS HAVE BEEN SNAPPING UP REAL ESTATE INVESTMENT TRUSTS THIS YEAR FUELING A RECORDBREAKING BOOM IN NEW ISSUES THE APPEAL TO INVESTORS IS NOT ONLY YIELDS AS HIGH AS 8 BUT ALSO THE PROMISE THAT DIVIDENDS WILL GROW SOME SAVVY INVESTORS HOWEVER THINK THAT THE MARKET HAS GOTTEN FROTHY AND THAT MANY OF THE NEW REITS ESPECIALLY THOSE THAT OWN SHOPPING MALLS WON'T DELIVER ON THEIR PROMISED GROWTH THESE DEALS ARE PRICED ON THE COME SAYS SAMUEL LIEBER MANAGER OF EVERGREEN GLOBAL REAL ESTATE FUND A LOT OF INITIAL PUBLIC OFFERINGS COMING OUT NOW ARE GOING TO BLOW UP ONCE DISDAINED BECAUSE OF THEIR COLLAPSE IN THE MID1970S REITS ARE FASHIONABLE ONCE AGAIN SHARE PRICES OF EQUITY REITS WHICH MANAGE PORTFOLIOS OF REALESTATE PROPERTIES HAVE BEEN ON A TEAR SINCE LATE 1990 FALLING INTEREST RATES HAVE MADE REIT DIVIDENDS MORE ATTRACTIVE TO INVESTORS AND THE TRUSTS HAVE BEEN ABLE TO BUY GOOD PROPERTIES AT CHEAP PRICES IN THE FIRST NINE MONTHS OF 1993 AN INDEX OF EQUITY REITS CLIMBED 29 INCLUDING BOTH PRICE CHANGE AND REINVESTED DIVIDENDS THAT STRONG PRICE PERFORMANCE HAS LED TO A HOT NEWISSUES MARKET A RECORD 31 NEW EQUITY REITS HAVE GONE PUBLIC SO FAR THIS YEAR MORE THAN IN ANY PRIOR CALENDAR YEAR FUELING THE DEMAND HAS BEEN THE CASHRICH MUTUAL FUND INDUSTRY BUT THE BUYERS AREN'T JUST REALESTATE SECTOR FUNDS UTILITY FUNDS AND BALANCED FUNDS WHICH INVEST IN BOTH STOCKS AND BONDS HAVE ALSO EMERGED AS BIG REIT BUYERS THE HEAVY BUYING HAS HELPED BAIL OUT SOME OF THE COUNTRY'S DEBTLADEN DEVELOPERS REIT PRICES HAVE SOARED TO 20 OR 30 ABOVE THE VALUE OF THEIR UNDERLYING REAL ESTATE SOME DEVELOPERS WHO WOULD LOSE THEIR SHIRTS SELLING THEIR PROPERTIES DIRECTLY CAN INSTEAD TURN THEM INTO REITS AND GET ENOUGH OF A PREMIUM TO REGAIN AN EQUITY STAKE IN THEIR BUSINESS BUT SIGNS OF FROTH ARE APPEARING IN THE MARKET IN THE OFFICIAL SELLING DOCUMENTS FOR NEW REIT ISSUES THE RISK FACTOR PAGE HAS MULTIPLIED SAYS DOUGLAS PRATT MANAGER OF INVESCO STRATEGIC FINANCIAL SERVICES FUND WE'RE TALKING PAGES OF RISK FACTORS INCLUDING ADMISSIONS THAT REITS DIDN'T GET THE VALUE OF THEIR PROPERTIES APPRAISED BEFORE GOING PUBLIC ALREADY SOME REITS ARE FALLING SHORT OF THE CASH FLOWS THAT THEY PROJECTED WHEN SHARES WERE FIRST SOLD TAUBMAN CENTERS A SHOPPING MALL REIT THAT WENT PUBLIC IN DECEMBER SAID LAST MONTH THAT ITS FUNDS FROM OPERATIONS THE MOST COMMON MEASURE OF REIT CASH FLOW WOULD NOT BE ENOUGH TO COVER ITS 88CENT DIVIDEND THIS YEAR THE STOCK WAS SMACKED DOWN ON THE DAY OF THE ANNOUNCEMENT DROPPING AS LOW AS 12 7/8 FROM 14 3/4 THE DAY BEFORE TAUBMAN EXPECTS TO MAINTAIN ITS DIVIDEND AND THAT HAS HELPED THE STOCK RECOVER TO 14 1/4 BUT EVEN WITH THE CURRENT DIVIDEND MONEY MANAGER ROBERT STEERS IS LEERY OF TAUBMAN BECAUSE HE DOESN'T LIKE THE COMPANY'S GROWTH PROSPECTS IT'S OUR OPINION THE STOCK'S OVERVALUED HERE SAYS MR STEERS COMANAGER OF COHEN & STEERS REALTY SHARES A MUTUAL FUND EVERGREEN'S MR LIEBER WORRIES THAT SHOPPING MALL REIT CROWN AMERICAN REALTY TRUST WHICH WENT PUBLIC IN AUGUST AT 17 1/4 WILL ALSO HAVE TROUBLE MAKING ITS PROJECTED EARNINGS GROWTH ITS EXISTING PROPERTIES HAD AVERAGE VACANCY RATES OF ABOUT 19 AT THE END OF JUNE THEY STILL HAVE VACANCIES THEY NEED TO FILL BEFORE THEY CAN HOPE TO EXPAND MR LIEBER SAYS RATHER THAN THE EXPECTED 160 TO 165 A SHARE IN FUNDS FROM OPERATIONS NEXT YEAR MR LIEBER EXPECTS CROWN TO EARN ONLY 150 TO 155 NEXT YEAR CROWN PROBABLY WON'T BE ABLE TO GROW THE DIVIDEND BEYOND THE CURRENT 140 HE SAYS THE STOCK AT 17 IS DOWN FROM ITS INITIAL OFFERING PRICE OF 17 1/4 CROWN AMERICAN CHAIRMAN FRANK J PASQUERILLA PAINTS A BRIGHTER PICTURE HE SAYS THE FIRM WILL MAINTAIN ITS DIVIDEND THAT ITS OCCUPANCY RATES HAVE INCREASED AND THAT IT IS ON TRACK TO GENERATE THE PROJECTED FUNDS FROM OPERATIONS BUT WHILE ANALYSTS ARE STEERING CLEAR OF NEW SHOPPING MALL REITS THERE ARE OTHER REITS THEY DO LIKE APARTMENT REITS ARE A GOOD BET SAYS MR LIEBER BECAUSE RENTS ARE RISING IN SOME SECTIONS OF THE COUNTRY MR LIEBER LIKES OASIS RESIDENTIAL WHICH WENT PUBLIC LAST WEEK AT 21 3/4 AND NOW TRADES AT 25 3/8 MR STEERS FAVORS FACTORY OUTLET REITS BECAUSE UNLIKE MANY OTHER FORMS OF REAL ESTATE THEY AREN'T OVERBUILT IT IS THE FASTESTGROWING SECTOR OF THE REAL ESTATE MARKET MR STEERS SAYS WE ACTUALLY VIEW THEM AS GROWTH STOCKS MR STEERS LIKES FACTORY STORES OF AMERICA AND TANGER FACTORY OUTLET 9310220075 931022 BUSINESS BRIEF CONTROL DATA SYSTEMS INC NET QUADRUPLED IN 3RD PERIOD BUT FELL BELOW EXPECTATIONS CONTROL DATA SYSTEMS INC CITING WEAK SALES IN EUROPE REPORTED LOWERTHANEXPECTED THIRDQUARTER EARNINGS AND A 16 DROP IN REVENUE THE ARDEN HILLS MINN COMPUTERSERVICES CONCERN SPUN OFF FROM THE FORMER CONTROL DATA CORP LAST YEAR SAID NET INCOME FOR THE QUARTER ENDED OCT 2 TOTALED 982000 OR SEVEN CENTS A SHARE MORE THAN FOUR TIMES NET OF 206000 OR TWO CENTS A SHARE A YEAR EARLIER REVENUE FELL TO 971 MILLION FROM 115 MILLION EARNINGS WERE NEARLY 50 BELOW WALL STREET'S EXPECTATIONS SENDING THE COMPANY'S STOCK DOWN 150 OR 14 TO 9625 IN NATIONAL OVERTHECOUNTER TRADING CONTROL DATA BLAMED THE SHORTFALL ON A SLUMP IN EUROPE THE SOURCE OF ABOUT 40 OF REVENUE THOUGH THE COMPANY PLANS TO CUT COSTS THERE THE SLOWDOWN IS EXPECTED TO CRIMP EARNINGS THROUGH THE YEAR 9310220074 931022 BUSINESS BRIEF GILLETTE CO THIRDPERIOD NET GREW 13 ON REVENUE OF 134 BILLION GILLETTE CO HELPED BY THE GROWING POPULARITY OF ITS SENSOR SHAVING SYSTEM REPORTED RECORD EARNINGS OF 145 MILLION OR 65 CENTS A SHARE IN THE THIRDQUARTER UP 13 FROM A YEAR EARLIER IN THE PREVIOUS YEAR'S QUARTER THE PERSONALCARE AND STATIONERY PRODUCTS MAKER HAD NET INCOME OF 1282 MILLION OR 58 CENTS A SHARE SALES ALSO A RECORD ROSE 7 TO 134 BILLION FROM 125 BILLION THE GAINS BY SENSOR IN SEVERAL INTERNATIONAL MARKETS HOWEVER WERE SIGNIFICANTLY AFFECTED BY UNFAVORABLE EUROPEAN EXCHANGE RATES THE COMPANY SAID OTHER TOILETRIES AND COSMETICS SALES IN THE THIRDQUARTER WERE CONSIDERABLY HIGHER THAN A YEAR EARLIER IT SAID STATIONERY PRODUCTS SALES WERE ALSO SIGNIFICANTLY HIGHER REFLECTING THE INCLUSION OF PARK PEN 9310220073 931022 BUSINESS BRIEF INGERSOLLRAND CO THIRDQUARTER NET ROSE 17 WHILE SALES INCREASED BY 7 INGERSOLLRAND CO WOODCLIFF LAKE NJ REPORTED A 17 RISE IN THIRDQUARTER NET INCOME ON A 7 SALES INCREASE THE MAKER OF MACHINERY ENGINEERED EQUIPMENT BEARINGS AND OTHER PRODUCTS EARNED 352 MILLION OR 33 CENTS A SHARE UP FROM 30 MILLION OR 29 CENTS A SHARE A YEAR EARLIER SALES ROSE TO 9735 MILLION FROM 904 MILLION THE COMPANY SAID SALES FOR THE LATEST PERIOD WOULD HAVE FALLEN BY ABOUT 3 BUT FOR RESULTS OF INGERSOLLDRESSER PUMP CO A JOINT VENTURE FORMED IN 1992 WITH DRESSER INDUSTRIES INC IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING INGERSOLLRAND CLOSED AT 3675 DOWN 25 CENTS 9310220072 931022 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTON MAPS AN ALLOUT EFFORT TO SHORE UP CREDIBILITY ON HIS HEALTH PLAN BOTH THE PRESIDENT AND THE FIRST LADY WILL PERSONALLY DELIVER THE ADMINISTRATION'S MORE THAN 1000PAGE BILL TO CONGRESS NEXT WEEK PROBABLY WEDNESDAY THE WHITE HOUSE WILL SWAMP CAPITOL HILL AND THE PRESS WITH PAPERS TO BACK UP THE PLAN'S CONTROVERSIAL FINANCING SCHEME INCLUDED WILL BE A LINE SHOWING THE COST OF PRINTING HEALTH SECURITY CARDS FOR ALL AMERICANS ONE GOAL TO SMOTHER CRITICISM OVER THE DELAY IN PRODUCING A BILL CLINTON'S DECISION THIS WEEK TO RAISE THE 24CENT CIGARETTE TAX BY 75 CENTS A PACK INSTEAD OF BY 1 AIMS TO AVOID A NEW DISPUTE WITH TOBACCOSTATE DEMOCRATS OVER A WHITE HOUSE PROMISE TO LIMIT THE INCREASE DEMOCRATIC SENS DASCHLE AND WOFFORD PAVE THE WAY FOR CLINTON'S BILL BY ATTACKING CONGRESSIONAL ALTERNATIVES CLINTON WILL TRAVEL NEXT WEEK PROBABLY TO ROCHESTER NY TO PROMOTE HIS HEALTHCARE PLAN ACCENTUATE THE POSITIVE ON THE ECONOMY ECONOMIC ADVISERS URGE CLINTON ADMINISTRATION SPEECHES SHOULD BE MORE UPBEAT BECAUSE THE NUMBERS ARE UPBEAT TREASURY SECRETARY BENTSEN SAYS HE CONTENDS HEADLINES ABOUT BIGCOMPANY LAYOFFS ARE MISLEADING BECAUSE CONTRACTING OUT IS CREATING JOBS AT SMALL FIRMS WHITE HOUSE ECONOMIC ADVISERS TYSON AND RUBIN SAY THE CONTINUING DECLINE IN LONGTERM INTEREST RATES IS PAYING OFF EVEN HOME BUILDING IS SHOWING SIGNS OF LIFE OFFICIALS NOTE INFLATION IS LOWER THAN EXPECTED BUT THE DROP IN THE JOBLESS RATE IS SLOW AND SOME POLITICAL ADVISERS URGE CLINTON TO TONE DOWN POSITIVE TALK FOR FEAR IT SOUNDS TOO MUCH LIKE BUSH WHO WAS ATTACKED FOR BEING OUT OF TOUCH WHEN HIS CLAIMS OF AN IMPROVING ECONOMY DIDN'T MATCH PUBLIC PERCEPTIONS LOBBYING INTENSIFIES ON THE TRADE PACT AS SUPPORT STILL FALLS SHORT IT'S IN TROUBLE RIGHT NOW SAYS MONTANA SEN BAUCUS WHO IS LOBBYING HOUSE COUNTERPARTS FOR THE NORTH AMERICAN FREE TRADE AGREEMENT THE WHITE HOUSE COUNTS 177 OF 218 HOUSE VOTES NEEDED TO APPROVE NAFTA BUT INDEPENDENT CHECKS SHOW MORE THAN 200 MEMBERS OPPOSING OR LEANING AGAINST THE PACT NEARING THE TOTAL TO DEFEAT IT USANAFTA A GROUP OF PRONAFTA COMPANIES SPENDS MORE THAN 1 MILLION ON ADS FEATURING LEE IACOCCA ANTINAFTA UNIONS PUT UP 159 BILLBOARDS BOTH SIDES HIT THE AIRWAVES WITH ADS IN BIG STATES LIKE CALIFORNIA AND PENNSYLVANIA THE FIGHT MEANWHILE HINDERS THE ABILITY OF US NEGOTIATORS IN WORLDTRADE TALKS TO CUT DEALS THAT MIGHT HURT FIRMS WHOSE SUPPORT THE ADMINISTRATION NEEDS USANAFTA CONSIDERS HAVING NOBEL PRIZE ECONOMISTS EXPRESS THEIR SUPPORT ONE SNAG SOME OF THEM WROTE CLINTON CRITICIZING HIS JAPANESE TRADE POLICY JAPANESE STIMULUS ADMINISTRATION OFFICIALS EXPECT JAPAN TO ANNOUNCE FURTHER ACTION TO STIMULATE ITS ECONOMY WHEN PRIME MINISTER HOSOKAWA MEETS WITH CLINTON NEXT MONTH THE US EXPECTS AN INCOMETAX CUT AND A COMMITMENT TO DELAY COMPENSATING CONSUMPTIONTAX INCREASES FOR THREE YEARS TWOPARTY CITIES LOS ANGELES WITH A NEW GOP MAYOR AND A NEW CONVENTION CENTER BEGINS LOBBYING FOR THE 1996 REPUBLICAN CONVENTION MAYOR RICHARD RIORDAN TAPS BRAD FREEMAN A FORMER BUSINESS ASSOCIATE TO HELP WOO THE GOP THE CITY ALSO COURTS THE DEMOCRATS BUT FACES AN UPHILL BATTLE WITH CHICAGO WHICH WANTS BOTH CONVENTIONS TOO CRIME WATCH CRIME IS THE SINGLE FASTESTGROWING ISSUE ON THE NATIONAL AGENDA TODAY DECLARES GOP POLLSTER NEIL NEWHOUSE HE CITES ONE NEW POLL SHOWING CRIME SURPASSING HEALTH CARE AS A CONCERN OF AMERICANS NEW JERSEY GOV FLORIO'S SUCCESS IN USING A TOUGHONCRIME ISSUE IN HIS REELECTION RACE UNDERSCORES THE TREND UNLIKELY ALLY AFTER MEETING WITH THE TREASURY'S ROGER ALTMAN NAACP DIRECTOR BENJAMIN CHAVIS ISSUES A LETTER SUPPORTING TREASURY'S PROPOSALS IN ITS FIGHT WITH THE EPA OVER SUPERFUND REFORM THE LETTER BACKS LIMITING THE LIABILITY OF COMPANIES THAT HAVE DUMPED IN THE PAST AND USING BROAD BUSINESS TAXES TO MAKE UP THE LOST REVENUE FOREIGNPOLICY FOULUPS HAVE CLINTONITES SCRAMBLING TO REGROUP ADVISERS BLAME COMMUNICATIONS SNAFUS AND EVEN POOR PRESS MANAGEMENT FOR THE RECENT CHAOS NATIONAL SECURITY ADVISER LAKE SAYS THE ADMINISTRATION DIDN'T HAVE ENOUGH INTELLIGENCE INFORMATION TO MAKE THE RIGHT CALLS ON SOMALIA I THINK EVERYBODY FAILED THERE HE SAYS HE EXPECTS CLINTON TO HAVE MORE TOPLEVEL MEETINGS TO REVIEW FOREIGN HOT SPOTS WHITE HOUSE AIDE STEPHANOPOULOS STEPS IN TO HELP THE FOREIGNPOLICY TEAM HANDLE PROBLEMS ON CAPITOL HILL BUT DEPUTY SECURITY ADVISER BERGER RESISTS AN IDEA TO MOVE HIM TO A NEW SLOT FOR POLICY COORDINATION TAKING THE OFFENSIVE SECRETARY OF STATE CHRISTOPHER PROBABLY WILL BE SENT TO THE MIDEAST NEXT MONTH TO TRY TO REVIVE TALKS BETWEEN SYRIA AND ISRAEL INDIANA REP HAMILTON URGES CLINTON TO GIVE A MAJOR FOREIGNPOLICY SPEECH LAYING OUT GOALS AND PRINCIPLES AND HOW HE SEEKS TO ACHIEVE THEM MINOR MEMOS FREUDIAN SLIP AT A WHITE HOUSE BRIEFING TRANSPORTATION SECRETARY PENA PRAISES THE WHITE HOUSE OFFICE OF ENVIRONMENTAL APOLOGY ASKED IF HE THINKS THE STOCK MARKET IS TOO HIGH BENTSEN REPLIES EACH TIME I'VE THOUGHT SO A MONTH LATER I WISHED I'D BOUGHT TIMING IS EVERYTHING TWO WASHINGTON THINK TANKS CANCEL A JOINT BRIEFING ON ISSUES RELATED TO RESTORING DEMOCRACY IN HAITI 9310220071 931022 BUSINESS BRIEF FIRST BANCORP OF OHIO COMPANY GRANTS RIGHTS FOR COMMON STOCK HOLDERS FIRST BANCORP OF OHIO'S BOARD ADOPTED A SHAREHOLDER RIGHTS PLAN BUT SAID THE PLAN WASN'T ADOPTED IN RESPONSE TO ANY ACQUISITION OFFER AND IT DIDN'T KNOW OF ANY SUCH OFFER UNDER THE PLAN ONE RIGHT IS GRANTED FOR EACH SHARE OF COMMON STOCK OUTSTANDING EFFECTIVE NOV 5 TO SHAREHOLDERS OF RECORD NOV 1 EACH SHARE ISSUED AFTER THAT DATE WILL ALSO HAVE ONE RIGHT ATTACHED TO IT THE PLAN PROVIDES THE BOARD OF DIRECTORS FLEXIBILITY IN DEALING WITH ANY TAKOVER ACTION THE AKRON OHIO COMPANY SAID 9310220070 931022 BUSINESS BRIEF CRAY RESEARCH INC PROFIT MORE THAN DOUBLED IN 3RD PERIOD AS REVENUE SLID CRAY RESEARCH INC SAID THIRDQUARTER NET EARNINGS MORE THAN DOUBLED DESPITE A 83 REVENUE DECLINE NET INCOME TOTALED 153 MILLION OR 58 CENTS A SHARE COMPARED WITH 65 MILLION OR 25 CENTS A SHARE A YEAR EARLIER REVENUE FELL TO 202 MILLION FROM 2202 MILLION JOHN F CARLSON CHAIRMAN AND CHIEF EXECUTIVE OF THE EAGAN MINN SUPERCOMPUTER MAKER ATTRIBUTED THE STRONGERTHANEXPECTED PERFORMANCE TO THE TIMING OF TRANSACTIONS WITH SYSTEMS AND UPGRADES ORIGINALLY TARGETED FOR FOURTHQUARTER INSTALLATION ACCEPTED DURING THE THIRD QUARTER AND TO A LOWER EFFECTIVE TAX RATE THE VALUE OF ORDERS SIGNED IN THE QUARTER WAS 171 MILLION COMPARED WITH 180 MILLION A YEAR EARLIER BACKLOG AT THE END OF THE LATEST QUARTER WAS A RECORD 460 MILLION COMPARED WITH 429 MILLION A YEAR EARLIER 9310220069 931022 BUSINESS BRIEF PITNEY BOWES INC THIRDQUARTER NET FELL 13 ON SHARPLY HIGHER TAXES PITNEY BOWES INC REPORTED A 13 DROP IN THIRDQUARTER NET INCOME THE RESULT OF SHARPLY HIGHER PROVISIONS FOR TAXES THE STAMFORD CONN BUSINESSEQUIPMENT MAKER REPORTED THIRDQUARTER NET OF 69 MILLION OR 43 CENTS A SHARE COMPARED WITH 793 MILLION OR 50 CENTS A SHARE A YEAR AGO REVENUE WAS 8612 MILLION ABOUT FLAT WITH THE YEAREARLIER 861 MILLION PITNEY BOWES SAID IT RECORDED 202 MILLION OF ADDITIONAL TAX EXPENSE IN THE LATEST QUARTER AS A RESULT OF THE RECENT CHANGES IN THE US TAX LAW IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING PITNEY BOWES SHARES FELL 375 CENTS TO 3875 9310220068 931022 BUSINESS BRIEF AMERICAN GENERAL CORP THIRDQUARTER NET INCOME WAS LOWER THAN EXPECTED AMERICAN GENERAL CORP HOUSTON POSTED LOWERTHANEXPECTED THIRDQUARTER NET INCOME OF 1187 MILLION OR 55 CENTS A SHARE BECAUSE OF HIGHER TAX RATES A YEAR EARLIER THE INSURER EARNED 138 MILLION OR 63 CENTS A SHARE REVENUE GREW 44 TO 195 BILLION FROM 187 BILLION WALL STREET EXPECTED MORE A SURVEY OF 18 ANALYSTS BY ZACHS INVESTMENT RESEARCH CORP SHOWED AN EXPECTED MEAN OF 64 CENTS A SHARE IN THE QUARTER THE STOCK FELL 2125 TO 2950 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY WE WOULD CHARACTERIZE THIRDQUARTER RESULTS AS BALANCED PERFORMANCE' SAID HAROLD HOOK AMERICAN GENERAL'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER AMERICAN GENERAL SAID THE RETROACTIVE TAXRATE INCREASES FOR 1993 CUT INTO THIRDQUARTER NET BY 30 MILLION OR 14 CENTS A SHARE IN THE QUARTER IN THE NINE MONTHS NET WAS 3767 MILLION OR 174 A SHARE ON REVENUE OF 587 BILLION YEAREARLIER NET WAS ALMOST 399 MILLION OR 183 A SHARE ON REVENUE OF 544 BILLION THE RESULTS THIS YEAR INCLUDED A 367 MILLION ONETIME CHARGE IN THE FIRSTQUARTER FOR ACCOUNTING ADJUSTMENTS 9310220067 931022 BUSINESS BRIEF AMERICA WEST AIRLINES PILOTS AT COMPANY CHOOSE TO BE REPRESENTED BY UNION PILOTS AT AMERICA WEST AIRLINES VOTED TO BE REPRESENTED BY THE AIR LINE PILOTS ASSOCIATION RESULTING IN THE FIRST UNION PRESENCE IN THE CARRIER'S 10YEAR HISTORY AND PRESENTING AN ADDITIONAL FACTOR IN THE COMPANY'S EFFORTS TO EMERGE FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS THE NATIONAL MEDIATION BOARD WHICH OVERSEES SUCH ELECTIONS SAID MORE THAN 75 OF AMERICA WEST'S 1095 ELIGIBLE PILOTS VOTED FOR UNION REPRESENTATION WITH THE BULK OF THOSE VOTES GOING FOR ALPA WE LOOK FORWARD TO A COOPERATIVE RELATIONSHIP WITH OUR MANAGEMENT AND TO FULLY REALIZING AMERICA WEST'S POTENTIAL SAID MIKE MARTIN CHAIRMAN OF THE PILOTS ORGANIZING COMMITTEE IN A STATEMENT DOUG COMBS AN AMERICA WEST PILOT AND MEMBER OF THE COMMITTEE SAID HE THOUGHT ANY INVESTORS THE PHOENIX COMPANY HAS BEEN TALKING TO WOULD WANT SOME KIND OF LABOR AGREEMENT BEFORE COMMITTING TO A REORGANIZATION PLAN THAT WOULD BRING AMERICA WEST OUT OF CHAPTER 11 BUT MICHAEL J CONWAY CHIEF EXECUTIVE OFFICER SAID TALKS WITH POTENTIAL INVESTORS AND EFFORTS TO EMERGE FROM CHAPTER 11 WON'T BE IMPEDED BY THE UNION AFFILIATION 9310220066 931022 BUSINESS BRIEF NUWEST INDUSTRIES INC RECAPITALIZATION AND CHANGE IN CHARTER VOTED BY HOLDERS NUWEST INDUSTRIES INC ENGLEWOOD COLO SAID SHAREHOLDERS APPROVED ITS RECAPITALIZATION PLAN AND CHARTER AMENDMENT AT A SPECIAL MEETING THE PLAN CALLS FOR REFINANCING OR EXCHANGING SUBSTANTIALLY ALL THE COMPANY'S EXISTING DEBT OF ABOUT 536 MILLION THE FERTILIZER MANUFACTURER SAID IT EXPECTS SHORTLY TO COMPLETE NEGOTIATIONS FOR 40 MILLION OF SENIOR TERM LOANS AND A 20 MILLION REVOLVING WORKINGCAPITAL FACILITY AS WELL AS TO EXCHANGE 101 MILLION IN SECURED DEBT FOR AN EQUAL AMOUNT OF UNSECURED SUBORDINATED NOTES THE COMPANY SAID IT ALSO WILL SELL 35 MILLION MORE OF UNSECURED SUBORDINATED NOTES AND WILL ISSUE WARRANTS TO BUY 58 OF ITS FULLY DILUTED COMMON STOCK ABOUT 52 MILLION SHARES AFTER THE RECAPITALIZATION AS PART OF THE TRANSACTIONS 9310220065 931022 BUSINESS BRIEF JAMES RIVER CORP NET INCOME IN THIRD QUARTER REVERSES YEAREARLIER LOSS JAMES RIVER CORP RICHMOND VA REPORTED NET INCOME FOR THE THIRD QUARTER AGAINST A YEAREARLIER LOSS BUT SOFT PRICES FOR MANY PRODUCTS CONTINUED TO HURT EARNINGS IN THE QUARTER THE PAPER CONCERN HAD NET INCOME OF 48 MILLION COMPARED WITH A NET LOSS OF 2745 MILLION A YEAR AGO BECAUSE OF PAYMENTS TO PREFERRED SHAREHOLDERS 246 MILLION IN 1993 AND 184 MILLION IN 1992 THE COMPANY HAD A LOSS OF 24 CENTS A SHARE IN THE LATEST QUARTER COMPARED WITH A LOSS OF 358 A SHARE A YEAR AGO SALES FELL 25 TO 118 BILLION JAMES RIVER RECORDED AN 11 MILLION OR 13 CENTS A SHARE CHARGE TO ACCOUNT FOR THE RECENT FEDERAL CORPORATE TAX INCREASE LIKE SEVERAL OTHER CAPITALINTENSIVE COMPANIES JAMES RIVER AND OTHER PAPER PRODUCTS CONCERNS HAVE LARGE DEFERRED TAX CONSIDERATIONS ACCOUNTING STANDARDS ADOPTED LAST YEAR FORCE COMPANIES TO APPLY TAX INCREASES TO THE ENTIRE DEFERRED AMOUNT 9310220064 931022 BUSINESS BRIEF COMPUTER ASSOCIATES INTERNATIONAL SECONDPERIOD NET ROSE 86 ON 20 INCREASE IN REVENUE COMPUTER ASSOCIATES INTERNATIONAL INC POSTED AN 86 RISE IN NET INCOME FOR ITS FISCAL SECOND QUARTER BOOSTED BY THE STRENGTH OF ITS MIDRANGE CLIENTSERVER PRODUCTS AND STEADY GROWTH IN THE MAINFRAME AREA NET FOR THE QUARTER ENDED SEPT 30 WAS 875 MILLION OR 51 CENTS A SHARE COMPARED WITH 47 MILLION OR 28 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 20 TO 517 MILLION FROM 4319 MILLION THE LATEST REVENUE INCLUDED 40 MILLION IN UNFAVORABLE CURRENCY TRANSLATION THE COMPANY SAID CHARLES B WANG CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID MAINFRAME PRODUCT SALES GREW 20 HE CITED THE DOWNSIZING TREND MOVING MORE SLOWLY THAN ANTICIPATED AND A CONCERN THAT MAINFRAMES BE PROPERLY MANAGED MEANWHILE 9310220063 931022 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 2 15/16 HIGH 2 15/16 LOW 2 15/16 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 318 90 TO 179 DAYS 319 180 TO 239 DAYS 325 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 313 30 DAYS 314 60 DAYS 324 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 259 TWO MONTHS 267 THREE MONTHS 274 SIX MONTHS 288 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 320 THREE MONTHS 322 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 306 60 DAYS 316 90 DAYS 316 120 DAYS 316 150 DAYS 316 180 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 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 3/8 THREE MONTHS 3 3/8 SIX MONTHS 3 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 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 181993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 306 13 WEEKS 314 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 664 60 DAYS 674 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 662 60 DAYS 672 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 480 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 9310220062 931022 BUSINESS BRIEF DOW CHEMICAL CO QUARTERLY NET DECLINED 91 STOCK'S PRICE DROPS BY 42 DESPITE REPORTING THIRDQUARTER PROFIT THAT MET ANALYSTS' EXPECTATIONS DOW CHEMICAL CO'S STOCK FELL A SURPRISING 42 YESTERDAY IN HEAVY TRADING THE MIDLAND MICHBASED MAJOR CHEMICAL PRODUCER POSTED NET INCOME OF 139 MILLION OR 50 CENTS A SHARE IN THE LATEST QUARTER DOWN 91 FROM THE YEAREARLIER 153 MILLION OR 55 CENTS A SHARE SALES FELL 8 TO 437 BILLION FROM 475 BILLION THE PROFIT DROP HAD BEEN ANTICIPATED AND REFLECTED WEAK BUSINESS CONDITIONS SHARP PRICE DECLINES IN EUROPE AND FOREIGNEXCHANGE LOSSES THOSE FACTORS MORE THAN OFFSET PROFIT GAINS IN THE US AND THE BENEFIT OF COSTCUTTING EFFORTS WORLDWIDE IT WAS A GOOD QUARTER SAID PAINEWEBBER INC ANALYST ANDREW CASH WHO SAID THE CURRENCY PROBLEMS RELATING TO THE EUROPEAN OPERATION MASKED AN 8 DECLINE IN SELLING GENERAL AND ADMINISTRATIVE EXPENSES IN THE QUARTER HE SUGGESTED THE STOCKPRICE DROP DOWN 250 TO 56375 ON NEW YORK STOCK EXCHANGE COMPOSITE VOLUME OF MORE THAN 16 MILLION SHARES REFLECTED A FAILURE OF SOME INVESTORS TO PEEL AWAY EVEN THE FIRST LAYER OF THE ONION 9310220061 931022 FALLEN HEROES LEADERS OF REVOLUTION ACROSS EASTERN EUROPE ARE NOW ITS VICTIMS THOSE WHO HELPED TOPPLE COMMUNISM ARE FACING HIGH PRICES JOBLESSNESS CALIN NEMES'S DYING WISH BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL BUCHAREST CALIN NEMES STASHED HIS SUICIDE NOTE IN A FRIEND'S BRIEFCASE SO THE ROMANIAN POLICE WOULDN'T GET TO IT BEFORE THE NEWSPAPERS DID IN A HAND HEAVY WITH SARCASM HE SCRIBBLED FAREWELL TO A COUNTRY WHERE COMMUNISM HAS BEEN DRIVEN AWAY WHERE ROMANIANS HUNGARIANS AND EVEN GYPSIES LIVE PERFECTLY WELL TOGETHER WHERE PRICES ARE LOW AND WAGES ARE HIGH WHERE OUR CHILDREN DON'T GET SICK FAREWELL HE WROTE TO THE DREAMS OF THE EAST EUROPEAN REVOLUTIONARIES OF 1989 FOUR WINTERS AGO IN TRANSYLVANIA MR NEMES A LONGHAIRED PROVINCIAL ACTOR RAN INTO A MEDIEVAL SQUARE IN THE GRITTY TOWN OF CLUJ AND RIPPED OFF HIS SHIRT LIKE A MADMAN GO ON KILL ME HE SHOUTED TO A PHALANX OF SOLDIERS LOYAL TO COMMUNIST DICTATOR NICOLAE CEAUSESCU THE COMMANDING OFFICER RAISED HIS RIFLE AND HIT THE BARE TARGET WITH TWO BULLETS AS MR NEMES CRUMPLED TO THE COBBLESTONE PAVEMENT AN INSPIRED CROWD SWAMPED THE SOLDIERS THE REVOLUTION WAS ON MR NEMES SURVIVED PRESIDENT CEAUSESCU WAS EXECUTED BUT FOR THE REMAINING THREE YEARS SIX MONTHS AND 17 DAYS OF HIS LIFE MR NEMES BELIEVED THAT THE TYRANT GOT THE BETTER DEAL INSTEAD OF THE ENVISIONED DEMOCRATIC AND FREEMARKET UTOPIA THERE IS UNEMPLOYMENT SOARING INFLATION AND CRIME RACISM HAS SPREAD ACROSS THE LAND OLD COMMUNIST APPARATCHIKS ARE RUNNING THE NEW GOVERNMENT DESPAIRING THAT THIS ISN'T THE KIND OF ROMANIA FOR WHICH HE TOOK TWO BULLETS THE CAPTAIN WHO WOUNDED HIM IS NOW A MAJOR MR NEMES FINALLY DID IN THE SUMMER OF 1993 WHAT HE HAD CHALLENGED THE SOLDIERS TO DO HE KILLED HIMSELF AT AGE 32 AS IF TO PROVE HIS POINT POLICE HAVE HUSHED UP HIS CASE LEAVING EVEN CLOSE FRIENDS TO SPECULATE ABOUT THE METHOD OF SUICIDE BUT THE NOTE MR NEMES CAREFULLY LEFT BEHIND AND PUBLISHED IN A BUCHAREST NEWSPAPER PROVIDES AN UNMISTAKABLE EPILOGUE TO THE EUPHORIC REVOLUTIONS OF 1989 WHEN A SWARM OF ORDINARY EAST GERMANS CZECHS SLOVAKS AND ROMANIANS TORE DOWN THE IRON CURTAIN SHATTERED THE SOVIET BLOC AND BURIED THE COLD WAR ALL BETWEEN HALLOWEEN AND CHRISTMAS THEIR HEROISM CHANGED THE COURSE OF THE WORLD BUT WHAT HAS BECOME OF THEM TODAY MANY OF THE EVERYDAY HEROES OF 1989 HAVE BECOME VICTIMS ONCE THE SHOCK TROOPS OF REVOLUTION THEY ARE NOW THE CASUALTIES OF ECONOMIC SHOCK TREATMENT THEIR REVOLT AGAINST COMMUNISM BROUGHT THEM ACCESS TO THE WORLD'S TOURIST SPOTS SATELLITE TELEVISION AND BANANAS ALL YEAR ROUND BUT IT ALSO INTRODUCED THEM TO CAPITALISM'S SURVIVALOFTHEFITTEST COMPETITION WHILE A FEW HAVE BECOME FABULOUSLY SUCCESSFUL ENTREPRENEURS THE VAST MAJORITY HAVE DISCOVERED THEY WERE WOEFULLY UNFIT FOR THE NEW WORLD THEY ESTABLISHED FROM BUCHAREST TO BERLIN THEIR DISILLUSIONMENT AND DESPAIR HANG AS HEAVY AS THE AUTUMN SMOG GIVING EUROPE ITS CURRENT INSTABILITY AND FORESHADOWING THE FUTURE PROBLEMS THAT AWAIT ECONOMIC REFORMERS IN THE FORMER SOVIET UNION THE GREAT LOSERS OF THE REVOLUTIONS ARE THE ORDINARY WORKERS SAYS SILVIU BRUCAN A ROMANIAN EMINENCE GRISE TO EAST EUROPEAN GOVERNMENTS PAST AND PRESENT ALL OF A SUDDEN THEY HAVE BECOME THE UNDERDOGS OF THE POSTCOMMUNIST SOCIETY THAT MAKES THEM AN ANGRY AND UNRULY CROWD THE NO 1 SOCIAL PROBLEM IN EUROPE FOUR YEARS AGO AS HEROES OF THE REVOLUTIONS THE ORDINARY PEOPLE OF EASTERN EUROPE ELECTRIFIED THE WORLD'S LIVING ROOMS NOW AS BITTER VICTIMS THEY ARE BACK AGITATING FOR CHANGE ONCE AGAIN OCT 9 1989 I HAD THE FEELING THAT ALL OF LEIPZIG WAS ON ITS FEET SAYS ROSEMARIE WUNNENBURGER CLOSING HER EYES AND RECALLING HOW SHE NERVOUSLY LEFT THE SANCTUM OF A LUTHERAN CHURCH THAT NIGHT TO JOIN 70000 FELLOW CITIZENS ON A PROTEST MARCH THROUGH THE EAST GERMAN CITY THEY SCREAMED AND WHISTLED AT THE BUILDING HOUSING THE SECURITY POLICE THEY SHOOK THEIR FISTS AT THE LOCAL COMMUNIST PARTY HEADQUARTERS THEY CALLED FOR FREE ELECTIONS AND THE FREEDOM TO TRAVEL FOUR WEEKS LATER THE BERLIN WALL FELL LAST MONTH MRS WUNNENBURGER WAS OUT MARCHING AGAIN THIS TIME IN DRESDEN AT A RALLY PROTESTING THE GERMAN GOVERNMENT'S THREATENED CUTS IN JOBLESS BENEFITS AND OTHER SOCIAL EXPENDITURES SEVERAL WEEKS AFTER EAST GERMANY DISAPPEARED FROM THE WORLD'S MAPS HER JOB DISAPPEARED TOO WHEN THE MEATPROCESSING FACTORY SUCCUMBED TO COMPETITION IN A UNIFIED GERMANY DURING THE LEIPZIG MARCH SHE CARRIED A CANDLE IN DRESDEN SHE WAVED A HUGE BANNER DAMNING THE HARSHNESS OF CAPITALISM FOR A LONG TIME AFTER LOSING MY JOB I COULDN'T EVEN GO TO CONCERTS TO HEAR MY SON PLAY THE CELLO SHE MOANS WE HAD A BLOODLESS REVOLUTION BUT WE ARE NEVERTHELESS PAYING A HIGH PRICE LEIPZIG CALLS ITSELF THE CITY OF HEROES FOR GIVING BIRTH TO THE DEMONSTRATIONS THAT EVENTUALLY BROUGHT DOWN ONE OF THE MOST ORTHODOX OF THE COMMUNIST STATES TODAY MORE THAN 40 ARE ON THE DOLE AFTER LOSING THEIR COMMUNISTERA JOBS WE DIDN'T EXPECT THINGS TO HAPPEN THIS WAY SAYS MRS WUNNENBURGER A SLIGHT BESPECTACLED 57YEAROLD AFTER THE REVOLUTION WE THOUGHT NOW COMES OUR TIME WE CAN REALLY DO SOMETHING WE CAN USE OUR IDEAS OUR ENERGY OUR WORK EXPERIENCE' AND THEN WE FIND OUT THAT NO ONE NEEDS US THOUGH MRS WUNNENBURGER FINALLY DID GET A TEMPORARY JOB PAID FOR BY THE GOVERNMENT'S WORKCREATION PROGRAM IT IS ONE OF SUPREME IRONY SHE COUNSELS THE UNEMPLOYED IN AN OFFICE PROVIDED BY THE NIKOLAIKIRCHE THE LUTHERAN CHURCH THAT NURTURED THE REVOLUTION WITH ITS MONDAY NIGHT PEACE PRAYERS DAY AFTER DAY SHE STARES SYMPATHETICALLY INTO HOLLOW DEMORALIZED EYES LISTENING TO THE BROKEN PROMISE OF GERMAN REUNIFICATION AND STARING AT THE ROOTS OF THE NATION'S FESTERING RIGHTWING FANATICISM WE'RE BUILDING NEW WALLS IN GERMANY SHE SAYS THOSE WHO WORK AND THOSE WHO ARE UNEMPLOYED DON'T TALK TO EACH OTHER THEY DON'T UNDERSTAND EACH OTHER FRIENDSHIPS FAMILIES HAVE BEEN DESTROYED BY THIS AS DUSK DESCENDS PEOPLE ARE GATHERING AT THE PORTAL OF THE NIKOLAIKIRCHE IT IS ANOTHER MONDAY NIGHT FOUR YEARS TO THE WEEK AFTER THE FATEFUL OCT 9 RALLY THE COMMUNISTS ARE LONG GONE BUT THE PRAYER REMAINS THE SAME BLESSED ARE THEY WHICH DO HUNGER AND THIRST AFTER RIGHTEOUSNESS FOR THEY SHALL BE FILLED NOV 24 1989 PETR MILLER LOOKS OVER HIS SHOULDER AND CAN STILL SEE THE 10000 FELLOW WORKERS FOLLOWING HIM OUT THE DOORS OF PRAGUE'S CKD HEAVYMACHINERY FACTORY THAT DAY FOR SEVEN MILES THEY MARCHED PASSING FACTORY AFTER FACTORY GAINING MORE FOLLOWERS WITH EVERY STEP UNTIL THEY REACHED WENCESLAS SQUARE WHERE THE INTELLECTUALS' VELVET REVOLUTION HAD SET UP SHOP MR MILLER POSITIONED HIS MEN IN FRONT OF THE TV CAMERAS WHERE EVERYONE COULD SEE THEIR MESSAGE CZECHOSLOVAKIA'S WORKERS HAD GIVEN UP ON THE WORKERS' PARADISE IT WAS A DECISIVE MOMENT HE RECALLS WE SHOWED THE REST OF THE NATION THAT THE COMMUNISTS NO LONGER HAD THE SUPPORT OF THE WORKERS THREE WEEKS LATER THIS DEFIANT FACTORY FOREMAN WAS NAMED MINISTER OF LABOR AND SOCIAL AFFAIRS AS THE REVOLUTIONARIES TRIED TO BUILD A NEW GOVERNMENT FOR THREE YEARS HE WORKED OVERTIME LEADING MEETINGS AT 4 AM TRYING TO CUSHION THE PAINFUL ECONOMIC REFORMS WITH AN ELASTIC SOCIAL NET BUT DIFFERENCES BETWEEN CZECHS AND SLOVAKS OVER THE PACE OF CHANGE SPLIT THE NATION MR MILLER HIS FATHER A CZECH HIS MOTHER A SLOVAK LOST BOTH COUNTRY AND JOB TODAY HIS HUGE ARMS STRETCHING THE COTTON OF A WHITE SHIRT THE 53YEAROLD FORMER BLACKSMITH IS AGAIN FORGING A WORKERS' REVOLT AGAINST A CZECH REPUBLIC'S GOVERNMENT OF TECHNOCRATS WHICH HE SAYS IS CHARGING TOO FAST IN ITS CAPITALIST CRUSADE IGNORING THE CUSHION FOR THOSE WHO FALL AND RISKING A DANGEROUS BACKLASH AGAINST MARKET FORCES FOUR YEARS AGO WE WERE INSPIRED BY THE THOUGHT OF CHANGING SOMETHING THAT DIDN'T WORK SAYS MR MILLER SITTING BOLT UPRIGHT IN AN OFFICE OF THE OPPOSITION SOCIAL DEMOCRATIC PARTY SEVERAL BLOCKS FROM WENCESLAS SQUARE TODAY I REALIZE MUCH TO MY DEEP RESENTMENT THAT WE HAVE CHANGED OUR ECONOMIC SYSTEM BUT WE HAVE LOST SOMETHING OF MUCH MORE VALUE WHILE THE CZECH GOVERNMENT HAS SO FAR SUCCEEDED IN MINIMIZING UNEMPLOYMENT AND FORMING A CLASS OF RICH ENTREPRENEURS MR MILLER SAYS IT HAS LOST SIGHT OF THE IDEALS OF THE REVOLUTION OF CREATING A MORE JUST LIFE THE EMPHASIS HE COMPLAINS HAS SHIFTED TO PRIVATIZATIONS NOT PENSIONS TO BUSINESS TAX BREAKS NOT RESIDENTIAL RENT BREAKS THUS HE IS MORE VILLAIN THAN HERO AMONG HIS FORMER COLLEAGUES TODAY WHENEVER HE RETURNS TO THE CKD FACTORY COLLECTING RESEARCH FOR THE PRIVATE INSTITUTE OF EMPLOYMENT AND SOCIAL POLICY HE GETS AN EARFUL FEARS OF JOBLESSNESS COMPLAINTS OF HIGHER PRICES RESENTMENT THAT THE COMMUNISTAPPOINTED FACTORY SUPERVISORS ARE STILL IN PLACE MR MILLER BEGS ONCE AGAIN FOR THEIR SUPPORT HE ACHES TO RETURN TO GOVERNMENT SO HE CAN HONESTLY LOOK INTO THE EYES OF THE MEN WHO FOLLOWED HIM DOWN THE STREETS OF PRAGUE FOUR YEARS AGO SO FAR HE SAYS WITH CONTEMPT THE REVOLUTION WAS MADE FOR ONLY 10 OF THE POPULATION DEC 21 1989 THE DAY NEVER LEFT CALIN NEMES'S MIND WHY HE WONDERED OVER AND OVER WERE THE SOLDIERS WHO SHOT HIM AND DOZENS OF OTHERS IN CLUJ NEVER PROSECUTED INSTEAD IT WAS HE AND HIS FELLOW REVOLUTIONARIES WHO WERE SENTENCED TO LIVE HE WROTE BY THEIR NEIGHBORS' INDIFFERENCE IN A SPARTAN BUCHAREST APARTMENT COATU CATALIN RAISES A VODKA TOAST TO MR NEMES HIS COMRADEINREVOLUTION IF YOU PLAYED A ROLE IN THE REVOLUTION IF YOU TOOK A COUPLE OF BULLETS AND TODAY YOU SEE PEOPLE IN GOVERNMENT WHO STOLE THE REVOLUTION IT WILL MAKE YOU CRAZY HE SAYS MANY ARE THE TIMES HE HAS WASHED AWAY HIS DESPAIR WITH A DRINK BUT HE IS DETERMINED TO CARRY ON THE REVOLUTION AS VICE PRESIDENT OF THE DECEMBER 21 ASSOCIATION HE KEEPS ALIVE THE MEMORY OF THE HUNDREDS OF FALLEN HEROES TO HAUNT ROMANIA'S CURRENT LEADERSHIP KEPT IN POWER BY AN APATHETIC ELECTORATE THAT CAN'T SHAKE THE MINDSET OF 40 YEARS OF COMMUNISM WHILE ROMANIA TODAY IS A DECIDEDLY FREER PLACE UNDER CEAUSESCU CONTACTS WITH FOREIGNERS WERE ILLEGAL AS WAS THE IMPERIALIST SPORT OF BASEBALL IT TEETERS ON THE EDGE OF CAPITALISM SOME INEFFICIENT STATE ENTERPRISES HAVE BEEN CLOSED PRICES HAVE BEEN LIBERALIZED FOREIGN BUSINESSMEN TOOL AROUND IN LUXURY SEDANS YET THE ECONOMY HAS BEEN IN A STEEP NOSE DIVE MR CATALIN A 37YEAROLD SWIMMING COACH WHO TOOK A BULLET IN THE LEG DURING THE DEC 21 DEMONSTRATIONS TUGS AT HIS FLINTSTONEMOTIF SHORTS THEY'RE A PRESENT FROM MY WIFE'S SISTER IN SWEDEN HE NOTES IF I HAD TO BUY THEM HERE THEY WOULD COST 10 OF MY MONTHLY WAGE JUST THESE SHORTS ON THIS DAY IN THE APARTMENT OF THIS HERO THERE IS NO WATER LAST WEEK THERE WAS NO ELECTRICITY I WORK ONE DAY FOR THE EQUIVALENT OF TWO GOOD BEERS HE GROANS MEANING IMPORTED ONES NOW ALL THE TURKS ARABS AFRICANS COME HERE AND THEY HAVE ALL THE MONEY SAYS MR CATALIN WHO SUPPORTS AN EXTREME NATIONALIST PARTY MEANWHILE THE ROMANIANS STARVE FOR THIS HE SIGHS SO MANY PEOPLE HAD TO DIE OVER AT MARTYRS CEMETERY WHERE MANY OF THE FALLEN ARE BURIED THERE ISN'T ENOUGH MONEY TO FINISH CONSTRUCTION OF THE MARTYRS CHAPEL A WOMAN DRESSED IN BLACK BRUSHES THE DUST FROM THE GRAVE OF HER SON FLORIAN TIAN WHO SMILES RAKISHLY FROM A BLACK AND WHITE PHOTO STUCK TO THE HEADSTONE HE WAS 16 HE DIED FOR NOTHING WHISPERS MR TIAN'S MOTHER WHOSE MONTHLY PENSION ISN'T EVEN ENOUGH TO BUY FLOWERS FOR THE GRAVE EVERY DAY SHE RECKONS THE STATE OWES HER THE LIVING THAT HER SON COULD HAVE PROVIDED INSTEAD SHE COMPLAINS THE GOVERNMENT RECENTLY RESCINDED A LAW THAT ALLOWED RELATIVES OF THE MARTYRS TO RIDE THE SUBWAY FOR FREE THINGS WERE MUCH BETTER UNDER CEAUSESCU SHE SAYS NOW I DON'T EVEN HAVE ENOUGH MONEY FOR A NEW PAIR OF SHOES SHE LOOKS DOWN AT HER RAGGED BROWN SANDALS SHE BOUGHT THEM SHE POINTEDLY NOTES WHEN THE DICTATOR WAS STILL ALIVE AT THE GRAVE OF VICTOR STEFANOV WHO WAS 22 A FATHER LIGHTS A CANDLE A MOTHER PLANTS SOME FLOWERS BOTH ARE WEEPING THE FATHER SCOFFS AT HIS SON'S IDEALISM MAYBE WE HAVE FREEDOM TODAY BUT WE HAVE NOTHING TO EAT HE SAYS HOW WOULD HE ANSWER MR NEMES AND HIS SON WHY DOESN'T HE EXERCISE HIS FREEDOM DEMAND JUSTICE AND VOTE FOR A NEW GOVERNMENT HE SHRUGS AND WIPES AWAY THE TEARS TURNING TO FETCH SOME WATER HE SAYS DEMOCRACY WITH AN EMPTY STOMACH IS USELESS 9310220060 931022 MARKETING BRIEF KNIGHTRIDDER INC EARNINGS AT MEDIA CONCERN WERE FLAT IN THIRD QUARTER KNIGHTRIDDER INC MIAMI FACED WITH SLUGGISH AD REVENUE AND HIGHER COSTS SAID THIRDQUARTER EARNINGS WERE FLAT WHEN COMPARED WITH YEAREARLIER RESULTS THE MEDIA COMPANY SAID NET INCOME TOTALED 313 MILLION OR 57 CENTS A SHARE COMPARED WITH 314 MILLION OR 57 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 5 TO 5931 MILLION FROM 5649 MILLION THE RESULTS WHICH WERE AT THE LOW END OF ANALYSTS' EXPECTATIONS REFLECTED A GAIN OF ONLY 16 IN ADVERTISING REVENUE IN THE COMPANY'S NEWSPAPERS THE COST OF NEWSPRINT INK AND SUPPLEMENTS MEANWHILE ROSE 113 ONE BRIGHT SPOT WAS KNIGHTRIDDER'S BUSINESS INFORMATION SERVICES WHERE REVENUE AND PROFITS EACH JUMPED 16 TO 1104 MILLION AND 59 MILLION RESPECTIVELY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY KNIGHTRIDDER CLOSED AT 55 A SHARE DOWN 125 CENTS 9310220059 931022 BUSINESS BRIEF FUTURE COMMUNICATIONS INC SHAREHOLDER GROUP PLANS TO OUST MANAGEMENT BOARD A GROUP OF SHAREHOLDERS SAID IT IS TRYING TO REPLACE THE MANAGEMENT AND BOARD OF FUTURE COMMUNICATIONS INC DALLAS DICK T BOBBITT A SPOKESMAN FOR THE SHAREHOLDERS SAID IN A NEWS RELEASE THAT THE GROUP IS EVALUATING ITS OPTIONS AND EXPECTS TO ANNOUNCE A PROPOSAL SHORTLY HE COULDN'T BE REACHED FOR DETAILS BESIDES JAMES J LING THE FOUNDER OF LTV CORP THE GROUP INCLUDES MR BOBBITT FOUNDER AND FORMER PRESIDENT OF VIDEO SCIENCE TECHNOLOGY INC CLAUDE STONE DESCRIBED AS HIGHLY EXPERIENCED IN THE PAY TV CABLE AND TELEVISION INDUSTRIES AND ARTHUR LIPPER III A MANAGEMENT CONSULTANT AND FORMER PUBLISHER OF VENTURE MAGAZINE TOGETHER THE GROUP HOLDS LESS THAN 5 OF FUTURE'S STOCK MR BOBBITT CITED THE CIVIL LAWSUIT RECENTLY FILED BY THE SECURITIES AND EXCHANGE COMMISSION ACCUSING THE COMPANY AND SERGIO BOSCO THEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FRAUDULENTLY INFLATING THE COMPANY'S STOCK PRICE THE NATIONAL ASSOCIATION OF SECURITIES DEALER'S DECISION TO DELIST THE STOCK AND A RECENT SPATE OF SHAREHOLDER CLASSACTION LAWSUITS 9310220058 931022 BUSINESS BRIEF NOVACARE INC REHABCLINICS TO BE ACQUIRED IN 1833 MILLION STOCK SWAP NOVACARE INC SAID IT AGREED TO ACQUIRE REHABCLINICS INC IN A STOCK SWAP VALUED AT ABOUT 1833 MILLION NOVACARE A REHABILITATION SERVICES CONCERN BASED IN KING OF PRUSSIA PA WILL EXCHANGE 16 COMMON SHARES FOR EACH SHARE OF REHABCLINICS AN OUTPATIENT CLINIC SERVICE ALSO BASED IN KING OF PRUSSIA AT SEPT 30 REHABCLINICS HAD ABOUT 89 MILLION SHARES OUTSTANDING WHILE NOVACARE HAS ABOUT 496 MILLION SHARES OUTSTANDING NOVACARE SAID NOVACARE WILL ISSUE ABOUT 142 MILLION SHARES TO COMPLETE THE TRANSACTION IT ADDED IN LATE NEW YORK STOCK EXCHANGE TRADING NOVACARE SHARES FELL 875 CENTS TO 12875 REHABCLINICS FELL 375 CENTS TO 19875 IN OVERTHECOUNTER TRADING 9310220057 931022 WHAT'S NEWS WORLDWIDE CLINTON GAINED SENATE SUPPORT ON HAITI WHERE FUEL SHORTAGES DEVELOPED PRESIDENT CLINTON WON A FIGHT OVER SENDING US TROOPS TO HAITI WHEN THE SENATE REFUSED TO LIMIT HIS AUTHORITY TO DO SO IN A PAIR OF VOTES SENATORS ENDORSED A COMPROMISE THAT SAYS CLINTON SHOULD SEEK APPROVAL FROM LAWMAKERS BEFORE COMMITTING TROOPS BUT ISN'T REQUIRED TO DO SO IN HAITI MEANWHILE AN INTERNATIONAL OILANDARMS EMBARGO PROMPTED TWO FOREIGNOWNED OIL COMPANIES TO STOP DISTRIBUTING OIL TO GAS STATIONS CAUSING WIDESPREAD FUEL SHORTAGES SEPARATELY A LEGISLATIVE SUPPORTER OF OUSTED PRESIDENT ARISTIDE WAS REPORTED MISSING A COAST GUARD CUTTER ENFORCING THE EMBARGO FIRED SHOTS ACROSS THE BOW OF A HAITIBOUND SHIP THAT WOULDN'T TURN BACK THE VESSEL LEFT THE AREA CONGRESS KILLED THE SUPERCOLLIDER HALTING CONSTRUCTION ON THE ATOM SMASHER THAT WAS ONEFIFTH COMPLETE AT A COST OF 2 BILLION UNDER AN ACCORD REACHED BY HOUSE AND SENATE NEGOTIATORS THE 640 MILLION SOUGHT BY THE CLINTON ADMINISTRATION TO CONTINUE CONSTRUCTION THIS YEAR WILL BE USED INSTEAD TO SHUT DOWN THE TEXAS PROJECT THE UKRAINE PARLIAMENT REVERSED ITS DECISION TO CLOSE THE CHERNOBYL NUCLEAR PLANT THIS YEAR DEPUTIES CITING AN ENERGY SHORTAGE VOTED TO CONTINUE OPERATING THE PLANT SITE OF THE WORLD'S WORST NUCLEAR ACCIDENT IN 1986 THEY ALSO VOTED TO LIFT A MORATORIUM ON CONSTRUCTION OF NUCLEAR PLANTS ENVIRONMENTALISTS CONDEMNED THE ACTIONS THE MARINE CORPS DISMISSED CHARGES AGAINST A FLIGHT INSTRUCTOR ACCUSED OF ASSAULTING THE KEY WHISTLEBLOWER IN THE TAILHOOK SEXABUSE SCANDAL INVESTIGATORS SAID THERE WASN'T ENOUGH EVIDENCE TO WARRANT CHARGES AGAINST CAPT GREGORY BONAM IN THE ASSAULT OF NAVY LT PAULA COUGHLIN THE US GROSSLY MISCALCULATED WHEN IT SHIFTED FROM FAMINE RELIEF IN SOMALIA TO THE MILITARY PURSUIT OF CLAN LEADER AIDID WHOSE SUPPORTERS ARE WILLING TO FIGHT TO THE DEATH FOR HIM THE FORMER COMMANDER OF US FORCES IN SOMALIA SAID BUT MARINE LT GEN ROBERT JOHNSTON TOLD A HOUSE PANEL THAT THE US MISSION IS NOW ON THE RIGHT TRACK ISRAELI AND PALESTINIAN OFFICIALS REACHED AGREEMENT ON THE RELEASE OF SOME ARAB PRISONERS UNDER THE ACCORD ANNOUNCED IN EGYPT ISRAEL WILL FREE FOUR CATEGORIES OF PRISONERS BY EARLY NEXT WEEK WOMEN THE SICK AND PEOPLE EITHER UNDER THE AGE OF 18 OR OLDER THAN 50 THIS GROUP IS EXPECTED TO TOTAL MORE THAN 700 PALESTINIANS GUNMEN ASSASSINATED A LEADING MEMBER OF PLO CHAIRMAN ARAFAT'S FATAH MOVEMENT IN THE ISRAELIOCCUPIED GAZA STRIP THE SLAYING OF ASSAD SAFTAWI WAS THE THIRD POLITICAL KILLING IN GAZA SINCE ISRAEL AND THE PLO SIGNED A PEACE AGREEMENT LAST MONTH THE CLINTON ADMINISTRATION IS MOVING TO IMPROVE RELATIONS WITH CHINA IN A POLICY DRIVEN BY ARMSPROLIFERATION AND TRADE CONCERNS THE REASON FOR THE SHIFT US OFFICIALS SAID IS A RECENT POLICY REVIEW CONCLUDING THAT A FOURYEAR FREEZE IN RELATIONS BETWEEN THE TWO NATIONS WASN'T SOLVING PROBLEMS NATO DEFENSE MINISTERS ENDORSED A US PROPOSAL THAT WOULD BRING FORMER WARSAW PACT ADVERSARIES CLOSER TO THE ATLANTIC ALLIANCE WITHOUT OFFERING THEM IMMEDIATE NATO MEMBERSHIP THE PLAN DISCUSSED AT A TWODAY MEETING IN GERMANY WOULD FORGE CLOSER MILITARY TIES BETWEEN NATO AND ITS FORMER ENEMIES INCLUDING RUSSIA SHEVARDNADZE RECEIVED THE FIRM BACKING OF PRESIDENT CLINTON WHO ASSURED THE GEORGIAN LEADER OF MY CONTINUED FULL SUPPORT FOR YOUR LEADERSHIP AND INVITED HIM TO VISIT WASHINGTON SHEVARDNADZE HAS BEEN BATTLING TWO INSURRECTIONS RUSSIA SUSPENDED ITS DISPOSAL OF NUCLEAR WASTE IN THE SEA OF JAPAN BUT SAID THAT UNLESS IT COULD BUILD A NEW PROCESSING PLANT WITHIN 18 MONTHS IT MIGHT BE FORCED TO RESUME THE PRACTICE A RUSSIAN MILITARY SHIP DUMPED LOWLEVEL RADIOACTIVE WASTE INTO THE SEA OF JAPAN LAST WEEKEND PROVOKING AN OUTCRY FROM JAPANESE OFFICIALS ATTORNEY GENERAL RENO GAVE THE DIRECTOR OF THE FBI NEW AUTHORITY OVER THE DRUG ENFORCEMENT ADMINISTRATION BUT SAID SHE WOULDN'T MERGE THE TWO FBI CHIEF FREEH WILL RESOLVE DISPUTES BETWEEN THE AGENCIES PARATROOPERS OUSTED BURUNDI'S DEMOCRATICALLY ELECTED PRESIDENT NDADAYE AND STATE RADIO IN NEIGHBORING RWANDA SAID HE MAY HAVE BEEN KILLED THE COUP CAME JUST THREE MONTHS AFTER NDADAYE TOOK OFFICE 9310220056 931022 BUSINESS BRIEF SOMATOGEN INC PRICING ON OFFERING DELAYED SHARES FALL 75 CENTS TO 1225 AFTER WORD THAT SOMATOGEN INC HAD POSTPONED THE PRICING OF ITS 40 MILLION PREFERRED STOCK OFFERING SHARES DROPPED 75 CENTS TO CLOSE AT 1225 IN NATIONAL OVERTHECOUNTER TRADING THE COMPANY A LEADER IN RESEARCH FOR A HUMAN BLOOD SUBSTITUTE HAD EARLIER SAID IT WOULD USE THE FUNDS FOR RESEARCH AND DEVELOPMENT THE UNDERWRITERS DECLINED TO SPECIFY THE REASON FOR THE DELAY BUT SEVERAL INDUSTRY WATCHERS CHARACTERIZE THE DEAL AS A TOUGH SELL PEOPLE ARE LESS THAN ENTHUSED ABOUT BLOOD SUBSTITUTES IN GENERAL SAID EVAN STURZA EDITOR OF STURZA'S MEDICAL INVESTMENT LETTER SOMATOGEN IS STILL IN ITS PHASE I TRIALS IN THE HOTLY CONTESTED RACE TO DEVELOP A VIABLE BLOOD SUBSTITUTE THE COMPANY DECLINED TO PREDICT WHEN THE CONVERTIBLE EXCHANGEABLE STOCK MIGHT BE PRICED POINTING OUT THAT THE DEAL REMAINS ON FILE TIMOTHY HOOGHEEM CHIEF FINANCIAL OFFICER SAID SOMATOGEN ALSO IS PURSUING A NUMBER OF FINANCING ALTERNATIVES INCLUDING CORPORATE RELATIONSHIPS 9310220055 931022 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED OCT 15 ACCOUNTED FOR 92 OR AN AVERAGE 267 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME THESE RESULTS INCLUDED PROGRAM TRADING RELATED TO THE OCT 15 MONTHLY EXPIRATION OF STOCKINDEX OPTIONS AND FUTURES BROKERAGE FIRMS EXECUTED AN ADDITIONAL 54 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 484 INVOLVED STOCKINDEX ARBITRAGE UP FROM 213 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 541 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR CUSTOMERS WHILE 407 WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 52 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS SUSQUEHANNA UBS SECURITIES AND COOPER NEFF EXECUTED ALL OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND FIRST OPTIONS DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9310220054 931022 TECHNOLOGY WYETHAYERS SUED OVER CHARGES RELATED TO NORPLANT DRUG SAN FRANCISCO A CALIFORNIA WOMAN REPRESENTED BY ATTORNEY MELVIN BELLI HAS FILED A LAWSUIT CLAIMING THE CONTRACEPTIVE NORPLANT CAUSED HER SERIOUS HEALTH PROBLEMS INCLUDING INFECTIONS AND AN IRREGULAR HEARTBEAT NORPLANT MARKETED BY AMERICAN HOME PRODUCTS CORP'S WYETHAYERST LABORATORIES UNIT IS A CONTRACEPTIVE MADE UP OF FIVE MATCHSTICKSIZED RODS IMPLANTED IN WOMEN'S ARMS THAT WORKS FOR AS LONG AS FIVE YEARS NORPLANT WAS MARKETED IN THE US IN EARLY 1991 THE LAWSUIT FILED LAST MONTH IN CALIFORNIA SUPERIOR COURT IN SAN FRANCISCO CLAIMS WYETHAYERST WAS NEGLIGENT IN THE DESIGN MANUFACTURE AND SALE OF NORPLANT AND THE COMPANY ACTIVELY PROMOTED THE PRODUCT WITHOUT ADEQUATE WARNINGS ABOUT POTENTIALLY DANGEROUS CONSEQUENCES A SPOKESMAN FOR AMERICAN HOME PRODUCTS IN NEW YORK SAID WYETHAYERST WAS AWARE OF THE ALLEGATIONS IN THE SUIT BUT ISN'T ABLE TO EVALUATE THE SPECIFICS WE WOULD EXPECT IN DUE COURSE TO RECEIVE MEDICAL RECORDS AND BE BETTER ABLE TO MAKE A MORE ACCURATE ASSESSMENT AS TO WHAT THE PROBLEM WAS AND WHY IT OCCURRED HE SAID ADDING NORPLANT HAS GONE THROUGH THE FULL SAFETY AND EFFICACY REVIEW OF THE FOOD AND DRUG ADMINISTRATION HE SAID THERE ARE A FEW SUCH SUITS INVOLVING NORPLANT BUT DECLINED TO BE MORE SPECIFIC MARTHA MCBRAYER AN ASSOCIATE OF MR BELLI AND ONE OF THE ATTORNEYS REPRESENTING THE WOMAN SAID HER CLIENT WOULD SEEK MILLIONS OF DOLLARS IN DAMAGES SHE SAID MADRA ALYCE ULLRICH A 27YEAROLD SINGLE MOTHER OF TWO CHILDREN SUFFERS FROM SYSTEMIC BLOOD POISONING CAUSED BY THE SILICON IN THE NORPLANT RODS MS ULLRICH HAS BEEN HOSPITALIZED A NUMBER OF TIMES BECAUSE OF NORPLANTRELATED PROBLEMS SHE ADDED INCLUDING A 12DAY HOSPITAL STAY TO REMOVE THE RODS WHICH COST 47000 MS ULLRICH USED NORPLANT FOR FIVE MONTHS 9310220053 931022 CREDIT MARKETS PHILADELPHIA FED'S ROSY MANUFACTURING REPORT PUSHES SKITTISH INVESTORS INTO TREASURY SELLOFF BY LESLIE SCISM AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK NEWS OF STRONGERTHANEXPECTED MANUFACTURING ACTIVITY SPARKED A SELLOFF BY NERVOUS INVESTORS IN THE US TREASURY MARKET SENDING US BOND PRICES INTO A NOSEDIVE BOND TRADERS SAID INVESTORS OVERREACTED TO A REPORT FROM THE FEDERAL RESERVE BANK OF PHILADELPHIA WHICH SHOWED AN INCREASE IN MANUFACTURING ACTIVITY IN THE PHILADELPHIA REGION INVESTORS ARE WORRIED ABOUT HOW MUCH FURTHER THE BOND MARKET RALLY OF THE PAST YEAR HAS TO GO WITH RATES BELOW 6 NEWS OF RISING COMMODITY PRICES IN THE US AND FALLING INTEREST RATES IN EUROPE ALSO WERE FACTORS IN YESTERDAY'S PRICE PLUNGES THE MARKET IS VERY NERVOUS AND THE PROSPECT OF STRENGTHENING ECONOMIC DATA IS UNSETTLING AS WE'RE HOVERING AT RECORD LOW RATES SAID JOHN COSTAS HEAD OF GOVERNMENT TRADING AT CS FIRST BOSTON INC THE INFORMATION IN THIS REPORT IS NOT OF THE TYPE OF CONSEQUENCE TO CAUSE ANY MAJOR TYPE OF SELLOFF HE SAID BUT IT DID THE 30YEAR TREASURY BOND PLUNGED MORE THAN 1 3/8 POINTS YESTERDAY OR MORE THAN 1375 FOR A BOND WITH 1000 FACE VALUE TO 104 17/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE ROSE TO 592 THE HIGHEST YIELD IN MORE THAN A WEEK FROM 582 ON WEDNESDAY JUST LAST FRIDAY THE 30YEAR BOND YIELD DROPPED TO 579 ITS LOWEST LEVEL SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF 30YEAR BONDS IN 1977 ALSO LAST FRIDAY THE 10YEAR NOTE'S YIELD DROPPED TO 517 THE LOWEST SINCE THE LATE 1960S YESTERDAY THE 10YEAR NOTE YIELDED 532 UP FROM 524 ON WEDNESDAY MEANWHILE THE CHICAGO BOARD OF TRADE ANNOUNCED WEDNESDAY THAT IT HAS DROPPED ITS INVESTIGATION INTO A SURGE IN TREASURY BOND FUTURES PRICES THAT OCCURRED SHORTLY BEFORE THE RELEASE OF THE MONTHLY EMPLOYMENT REPORT ON OCT 8 ACCORDING TO A CHICAGO BOARD OF TRADE SPOKESMAN OUR OFFICE OF INVESTIGATIONS AND AUDITS HAS LOOKED INTO THE MATTER THROUGHLY AND HAS FOUND NO EVIDENCE OF A LEAK TREASURYS REACTED AS THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 COMMODITY PRICES ROSE 127 POINTS YESTERDAY TO 22001 THE FEDERAL RESERVE BANK OF PHILADELPHIA REPORTED THAT ITS INDEX OF LOCAL BUSINESS ACTIVITY JUMPED TO 151 DURING OCTOBER FROM A WEAK 07 READING IN SEPTEMBER THE REPORT SHOWED SIGNIFICANT IMPROVEMENTS IN NEW ORDERS SHIPMENTS AND FOR THE FIRST TIME IN FIVE MONTHS MANUFACTURING EMPLOYMENT BOND INVESTORS OFTEN REACT NEGATIVELY TO NEWS OF ECONOMIC STRENGTH BECAUSE THEY FEAR RAPID ECONOMIC GROWTH WILL LEAD TO INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THERE IS REASON TO BE CONCERNED IN THE SHORTTERM SAID MICHAEL GRAY A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS BECAUSE A LOT OF THE DAILY INFLATION INDICATORS SUCH AS THE CRB INDEX HAVE BEEN BEARISH RECENTLY IN THE LONG TERM INFLATION IS GOING TO REMAIN SUBDUED HE SAID BUT THE MARKET'S REACTION TODAY COULD BE THE BEGINNING OF THE END OF THE RALLY ANOTHER FACTOR CONTRIBUTING TO YESTERDAY'S PLUNGE IS A CONTINUING SHIFT BY US MONEY MANAGERS AND BOND TRADERS OF THEIR HOLDINGS TO THE HIGHERYIELDING EUROPEAN BOND MARKETS FROM THE US BOND MARKET ON WEDNESDAY FOR EXAMPLE MANY US INVESTORS WERE AMONG THOSE WHO SNAPPED UP A THREE BILLION MARK 183 BILLION ISSUE OF GLOBAL BONDS FROM THE WORLD BANK DEMAND WAS SO STRONG FOR THE ISSUE THAT THE YIELD AT THE TIME OF THE SALE WAS JUST 006 PERCENTAGE POINT ABOVE THE YIELD OF THE GERMAN BENCHMARK 10YEAR NOTE WITHIN HOURS OF THE COMPLETION OF THE SALE THE YIELD GAP HAD NEARLY CLOSED AND YESTERDAY DAIMLERBENZ NORTH AMERICA CORP FOUND STRONG DEMAND FOR ITS FIRST AUTO LOAN ASSETBACKED ISSUE THE COMPANY A UNIT OF DAIMLERBENZ AG OF STUTTGART GERMANY RECENTLY SHOWED ITS INTEREST IN ATTRACTING US INVESTORS BY LISTING ITS SHARES ON THE NEW YORK STOCK EXCHANGE THE REASON FOR ALL THIS DEMAND INVESTORS ARE COUNTING ON A PROFITABLE RIDE AS EUROPEAN BOND PRICES RISE AND INTEREST RATES FALL MANY EUROPEAN CENTRAL BANKS ARE SLASHING THEIR INTEREST RATES IN EFFORTS TO REVIVE FLAGGING ECONOMIES YESTERDAY FOR EXAMPLE A NUMBER OF EUROPEAN CENTRAL BANKS INCLUDING THOSE OF GERMANY ITALY AND BELGIUM CUT THEIR SHORTTERM RATES THE BUNDESBANK GERMANY'S CENTRAL BANK FOR EXAMPLE CUT ITS DISCOUNT RATE AND THE LOMBARD RATE BY 1/2 PERCENTAGE POINT THE OTHER COUNTRIES FOLLOWED THE GERMAN DISCOUNT RATE WHICH IS A SHORTTERM RATE AT WHICH THE BUNDESBANK LOANS TO COMMERCIAL BANKS WAS CUT TO 575 THE LOMBARD RATE WHICH IS THE RATE CHARGED FOR SUPPLEMENTAL BORROWINGS FROM THE BUNDESBANK THAT USE SECURITIES AS COLLATERAL WAS CUT TO 675 THE TREND IS TO LOWER GLOBAL YIELDS SAID ADAM GRESHIN A PRINCIPAL IN THE GLOBALBOND GROUP AT SCUDDER STEVENS & CLARK OF BOSTON SCUDDER HAS 5 BILLION OF FIXEDINCOME ASSETS UNDER MANAGEMENT THE BUNDESBANK MOVEMENT TODAY REASSURED US OF THE CONTINUED OVERALL DECLINE IN INTEREST RATES HE SAID THE EUROPEAN RATE CUTS WERE GOOD NEWS TO MONEY MANAGERS LIKE MR GRESHIN WHO SAID HE AND OTHER SCUDDER MONEY MANAGERS HAVE GRADUALLY REDUCED THEIR HOLDINGS OF US BONDS OVER THE LAST SIX MONTHS IN FAVOR OF EUROPEAN BONDS IN ANTICIPATION OF INTERESTRATE CUTS SCUDDER'S HOLDINGS OF US BONDS ARE AT THEIR LOWEST LEVEL IN FIVE YEARS HE SAID WE BELIEVE MOST OF THE OPPORTUNITY NOW EXISTS OVERSEAS MR GRESHIN SAID WE BELIEVE EUROPEAN RATES WILL FALL TO US LEVELS MONEY MANAGERS ECONOMISTS AND TRADERS SAID THE SELLOFF MAY BE A SIGN THAT US INTEREST RATES ARE NEAR THEIR BOTTOM BUT FEW THINK THAT RATES WILL MOVE SIGNIFICANTLY UPWARD ANY TIME SOON MANY MONEY MANAGERS EXPECT RATES TO FALL AGAIN SLIGHTLY AND THEN TRADE IN NARROW RANGES THIS IS A CORRECTION IN A GIANT RALLY THAT HASN'T SEEN ANY SIGNIFICANT CORRECTION SINCE IT STARTED AFTER CLINTON'S ELECTION NEARLY A YEAR AGO SAID LARRY DALY SENIOR PORTFOLIO MANAGER AT PUTNAM INVESTMENT CO THE US BOND MARKET IS PROBABLY VERY CLOSE TO THE BOTTOM IN RATES HE SAID MR DALY MANAGES THE 550 MILLION PUTNAM GLOBAL GOVERNMENTAL INCOME TRUST FUND MR DALY ALSO HAS REDUCED HIS EXPOSURE TO US LONGTERM BONDS IN ANTICIPATION OF RATES BOTTOMING OUT IN FACT HE SOLD SOME OF THESE LONGTERM BONDS IN THE LAST FEW DAYS THE EUROPEAN RATE CUTS WERE VERY GOOD NEWS FOR MR DALY HE SAID HE NOW HAS THE BULK OF HIS ASSETS INVESTED IN EUROPE HE SAID THE BEST VALUES IN EUROPE ARE NOW IN SPAIN ITALY SWEDEN AND FRANCE NATIONS WHERE HE EXPECTS SHARP INTERESTRATE DECLINES OTHER MONEY MANAGERS ARE PREPARED TO PARE DOWN THEIR HOLDINGS OF LONGTERM US TREASURYS SHOULD RATES CONTINUE TO RISE OVER THE NEXT FEW DAYS IF THE MARKET STARTS TO TELL US THAT RATES ARE HEADING HIGHER WE'RE NOT GOING TO FIGHT IT SAID ANTHONY JIORLE A VANGUARD GROUP VICE PRESIDENT IN THE FIXED INCOME GROUP WE WOULD AGREE WITH THE MAJORITY THAT THE NEXT SIGNIFICANT MOVE IN RATES WILL BE ON THE UPSIDE IF THE 30YEAR BOND YIELD RISES ANOTHER 01 PERCENTAGE POINT TO BREAK ABOVE 6 HE WOULD BECOME A SELLER MR JIORLE SAID IN WHENISSUED TRADING LATE YESTERDAY THE TWOYEAR NOTE TO BE SOLD NEXT TUESDAY YIELDED 391 AND THE FIVEYEAR NOTE TO BE SOLD NEXT WEDNESDAY YIELDED 474 IN THE ASSETBACKED MARKET DAIMLERBENZ NORTH AMERICA CORP PRICED ITS FIRST AUTOLOAN ASSETBACKED ISSUE DRAWING STRONG DEMAND FOR THE 5102 MILLION OFFERING THE DEAL WAS OFFERED TO INVESTORS AT A PRICE OF 99 28/32 TO YIELD 4107 A THIN 04 PERCENTAGE POINT ABOVE THE US TREASURY'S THREEYEAR NOTE COMPARED WITH SPREADS OF 05 PERCENTAGE POINT FOR SIMILAR ISSUES FROM OTHER STRONG COMPANIES THE COMPANY IS A UNIT OF DAIMLERBENZ AG OF STUTTGART GERMANY THAT NATION'S LARGEST INDUSTRIAL COMPANY THE OFFERING IS A WAY FOR THE US UNIT TO REMOVE ASSETS FROM ITS BALANCE SHEET AND PERHAPS MORE IMPORTANTLY TO DIVERSIFY ITS SOURCES OF FUNDING SAID CHARLES KERNER A VICE PRESIDENT AT JP MORGAN SECURITIES CORP LEAD MANAGER OF THE TRANSACTION ONE REASON FOR THE ATTRACTIVE PRICING OF THE DEAL WAS THE RECOGNITION OF THE DAIMLERBENZ NAME AND THE QUALITY OF THE POOL OF LOANS BACKING THE TRANSACTION THE CREDIT ARM OF DAIMLERBENZ MERCEDES BENZ CREDIT CORP DOESN'T FINANCE AS MANY LOANS AS SUCH HUGE AUTOLOAN ASSETBACKED ISSUERS AS CHRYSLER CORP OR GENERAL MOTORS CORP YESTERDAY'S ISSUE FROM DAIMLERBENZ REPRESENTS MOST OF THE ISSUER'S CURRENT LOAN PORTFOLIO MR KERNER SAID ONE TRADITIONAL BUYER OF AUTO ASSETBACKED PAPER BOB PERSONS OF SCUDDER STEVENS & CLARK IN BOSTON MARVELED AT THE PRICING DAIMLERBENZ WAS ABLE TO ACHIEVE BUT SAID THE YIELD ON THE DEAL WAS TOO LOW FOR HIS NEEDS MEANWHILE CURRENT COUPON MORTGAGEBACKED PASSTHROUGHS FARED RELATIVELY WELL DESPITE THE SHARP DROP IN THE TREASURY MARKET THE DROPS IN THE CURRENT COUPON MORTGAGEBACKED SECURITIES WHICH CARRY YIELDS OF 6 WERE ABOUT 3/8 POINT OR HALF THAT IN THE TREASURY'S 10YEAR NOTE CORPORATEDEBT ISSUANCE SLOWED TO A TRICKLE AS PRICES OF LONGMATURITY BONDS FELL BY MORE THAN A POINT FOLLOWING DECLINES IN TREASURYS ABOUT 127 BILLION OF DEBT WAS PRICED IN THE CORPORATE MARKET ALTHOUGH MORE THAN HALF WAS BY GOVERNMENTSPONSORED ENTERPRISES THREE COMPANIES TAPPED THE MARKET CYPRUS MINERALS CO DEAN WITTER DISCOVER & CO AND HECHINGER CO IN THE INVESTMENTGRADE SECTOR TRADING ACTIVITY WAS MODERATE AS PRICES FOLLOWED TREASURYS DOWNWARD YIELD SPREADS TIGHTENED BY ABOUT 003 TO 005 PERCENTAGE POINT ACROSS THE BOARD TRADERS SAID SPREADS OF LONGTERM DEBT FROM TELEPHONE COMPANIES TIGHTENED BY 005 PERCENTAGE POINT AS DID DEBT FROM CANADIAN PROVINCES TRADERS SAID CALLABLE DEBT ALSO BENEFITED FROM THE DOWN MARKET WITH SPREADS 003 TO 004 PERCENTAGE POINT TIGHTER A TRADER SAID JUNKBOND TRADING WAS QUIET WITH PRICES DOWN BY ABOUT 1/8 THE MARKET WAS REACTING IN PART TO TREASURYS AND TO CONTINUED PROFITTAKING A TRADER SAID MUNICIPAL BONDS FELL WITH TREASURYS AND CLOSED 3/8 TO 3/4 POINT LOWER THURSDAY TWO OF THE HARDERHIT ISSUES WERE THE CONNECTICUT HEALTH & EDUCATION FACILITIES AUTHORITY'S 5 OF 2023 REVENUE BONDS AND 55 OF 2028 MARINETERMINAL REVENUE REFUNDING BONDS FOR VALDEZ ALASKA THE CONNECTICUT BONDS CLOSED 3/4 WEAKER AT 96 5/8 TO 97 YIELDING 52 AND THE ALASKA SECURITIES FINISHED 5/8 LOWER AT 99 7/8 TO 100 YIELDING 55 SOME TREASURYBOND ISSUES DROPPED MORE THAN A POINT THIS SESSION ON SELLING ATTRIBUTED TO AMONG OTHER THINGS A SURGE IN COMMODITY PRICES THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 WIDELY WATCHED COMMODITIES CLOSED 127 POINTS HIGHER THURSDAY AT 22001 IN THE PRIMARY MARKET THE FLORIDA BOARD OF EDUCATION'S 4243 MILLION GENERAL OBLIGATION PUBLICEDUCATION CAPITAL OUTLAY REFUNDING BONDS WERE WON BY A GOLDMAN SACHS & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5224 THE ISSUE INCLUDED 5125 ISSUES PRICED TO YIELD 517 IN 2018 5125 ISSUES PRICED TO YIELD 520 IN 2022 AND 52 ISSUES PRICED TO YIELD 524 IN 2023 ALL THE BONDS ARE SOLD GOLDMAN SACHS SAID 9310220052 931022 LETTERS TO THE EDITOR THE OTHER AS BIOGRAPHER OF DISRAELI REVIEWED ON YOUR LEISURE & ARTS PAGE SEPT 30 I AM NOT UNGRATEFUL FOR THE VERY POSITIVE PERSPECTIVE OF YOUR CRITIC HOWEVER HIS SKEPTICISM ABOUT DISRAELI'S PROBABLE TWO CHILDREN OUTSIDE HIS MARRIAGE IGNORES THE STATEMENT OF DIZ'S LAWYER AND COEXECUTOR ATTACHED TO THE WILL WHICH STATES THAT A MINOR CHILD HAD BEEN LEFT UNPROVIDED FOR ONE CHILD COULD HAVE BEEN REFERRED TO THIS WAY AS THE SECOND WAS BORN TO A MARRIED WOMAN WITH A MONEYED HUSBAND I HAVE HELD SIR PHILIP ROSE'S ADVISORY STATEMENT TO NATHANIEL ROTHSCHILD IN MY HAND WITH THE WILL AND CANNOT DOUBT ITS AUTHENTICITY AS DISRAELI'S LAWYER AND SECRET AGENT OVER MANY YEARS ROSE MUST HAVE KNOWN WHAT HE WAS TALKING ABOUT AND KATE AS A YOUNG WOMAN LOOKED STRIKINGLY LIKE DISRAELI 9310220051 931022 BUSINESS BRIEF TECNOL MEDICAL PRODUCTS INC REMAINING 45 OF ANAGO INC TO BE ACQUIRED BY YEAR END TECNOL MEDICAL PRODUCTS INC FORT WORTH TEXAS SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE THE 45 OF ANAGO INC COMMON STOCK IT DOESN'T ALREADY OWN TECNOL ACQUIRED 55 OF ANAGO A CLOSELY HELD FORT WORTH MAKER OF DISPOSABLE MEDICAL PRODUCTS IN PRIVATE STOCK TRANSACTIONS LAST YEAR IT SAID THAT AFTER BUYING THE REMAINING 45 IT WILL HAVE SPENT ABOUT 28 MILLION TO ACQUIRE THE COMPANY TECNOL WHICH ALSO MAKES DISPOSABLE MEDICAL PRODUCTS SAID IT EXPECTS TO COMPLETE THE ACQUISITION SUBJECT TO CUSTOMARY CLOSING CONDITIONS BY DECEMBER THE COMPANY SAID THE ACQUISITION AGREEMENT ENDS CURRENT LITIGATION BETWEEN THE TWO COMPANIES RELATED TO LAST YEAR'S STOCK PURCHASES TECNOL SAID ANAGO HAS ANNUAL SALES OF ABOUT 27 MILLION 9310220050 931022 BUSINESS BRIEF SILICON GRAPHICS INC NET INCOME NEARLY DOUBLED IN THE FISCAL FIRST QUARTER SILICON GRAPHICS INC MOUNTAIN VIEW CALIF SAID PROFIT NEARLY DOUBLED IN ITS FISCAL FIRST QUARTER WITH STRONG SALES RESULTS ACROSS ITS ENTIRE RANGE OF COMPUTER PRODUCTS THE COMPUTER MAKER SAID NET IN THE QUARTER ENDED SEPT 30 WAS 257 MILLION OR 34 CENTS A SHARE COMPARED WITH 131 MILLION OR 19 CENTS A SHARE IN THE YEAREARLIER QUARTER REVENUE JUMPED 31 TO 3016 MILLION FROM 2311 MILLION AFTER THE ANNOUNCEMENT SILICON GRAPHICS SHARES JUMPED 175 TO CLOSE AT 4475 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY EDWARD R MCCRACKEN SILICON GRAPHICS' PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT THAT THE COMPANY SAW STRONG GROWTH IN SALES OF ITS MIPS PRODUCT LINE WHICH INCLUDES COMPUTERS RANGING FROM LOWCOST WORKSTATIONS TO SUPERCOMPUTERS THE COMPANY'S NORTH AMERICAN BUSINESS WAS PARTICULARLY STRONG HE SAID 9310220049 931022 LETTERS TO THE EDITOR IT'S A HARD ROAD BUT IT'S THE BEST YOUR OCT 1 INTERNATIONAL PAGE ARTICLE ON BRAZIL RECOGNIZES THE IMPORTANCE OF THE ECONOMIC REFORMS BEING CARRIED OUT BY PRESIDENT ITAMAR FRANCO THE ECONOMIC LIBERALIZATION PROGRAM CONTINUES AND THE PRIVATIZATION PROCESS PROGRESSES WHAT IS LABELED AS RELUCTANCE IN YOUR ARTICLE IN FACT REFLECTS THE EFFORT TO CARRY OUT THESE REFORMS IN A DEMOCRATIC SETTING WITH FULL PARTICIPATION OF ALL SECTORS OF SOCIETY PRESIDENT FRANCO'S POLICIES FOLLOW THE ROAD OF DEMOCRACY WHICH IS COMPLEX AND ARDUOUS BUT IT IS THE ONLY ONE THAT LEADS TO CONSENSUAL AND SUSTAINABLE RESULTS PRESIDENT FRANCO HAS CONSISTENTLY COMMITTED HIMSELF TO THE PROMPT AND FULL INVESTIGATION OF ANY AND ALL INCIDENTS INVOLVING VIOLATION OF HUMAN RIGHTS LEGAL CHARGES HAVE BEEN BROUGHT AND SUSPECTS ARRESTED IN THE CASES MENTIONED IN YOUR ARTICLE PRESIDENT FRANCO ALSO HAS PURSUED THE IMPORTANT GOAL OF DISARMAMENT AND NONPROLIFERATION INTERNATIONAL AGREEMENTS SUCH AS THE TLATELOLCO TREATY AND THE SAFEGUARDS AGREEMENT WITH THE IAEA BEAR WITNESS TO THIS 9310220048 931022 WHAT'S NEWS BUSINESS AND FINANCE QVC STEPPED UP PRESSURE ON PARAMOUNT TO CONSIDER ITS 95 BILLION HOSTILE BID BY ANNOUNCING IT PLANS A CASH TENDER OFFER FOR 51 OF PARAMOUNT'S STOCK FOR 48 BILLION IN A A TWOTIER TAKEOVER STRATEGY QVC PLANS TO FOLLOW THE CASH OFFER WITH THE ACQUISITION OF THE REMAINING 49 OF PARAMOUNT FOR QVC STOCK GERMANY CUT ITS TWO KEY LENDING RATES TRIGGERING RATE CUTS IN OTHER EUROPEAN NATIONS THE BUNDESBANK CUT ITS DISCOUNT RATE TO 575 FROM 625 AND ITS LOMBARD RATE TO 675 FROM 725 GERMANY'S MOVE SENT EUROPEAN EQUITY MARKETS UP ABOUT 1 THE DOLLAR ROSE 18 AGAINST THE MARK BIG COMPANIES ARE REINING IN HEALTHBENEFIT COSTS EVEN BEFORE A CLINTON HEALTHCARE PLAN IS INSTALLED A SURVEY SHOWS MOBIL FORD CITICORP AND OTHERS ARE SLOWING GROWING COSTS BY USING MANAGEDCARE PROGRAMS CLINTON PLANS TO SET A CEILING ON THE TOTAL AMOUNT OF SUBSIDIES AVAILABLE TO LOWINCOME PEOPLE AND SMALL BUSINESSES UNDER HIS HEALTHCARE PLAN CLINTON APPROVED A BANKING POLICY THAT INCLUDES NATIONWIDE BRANCHING REGULATORY STREAMLINING AND STEPS TO HELP US BANKS COMPETE ABROAD BANKERS TRUST NEW YORK'S PROFIT JUMPED A BETTERTHANEXPECTED 87 FUELED BY INCREASED DEMAND FOR DERIVATIVES AND OTHER SECURITIES ACTIVITIES THE WHITE HOUSE PLANS TO CALL FOR THE PENTAGON AND CIVILIAN AGENCIES TO INCREASE SUBSTANTIALLY THEIR SMALLBUSINESS CONTRACTS AND PURCHASES OF COMMERCIAL PRODUCTS BOND PRICES DROPPED AFTER THE PHILADELPHIA FED RELEASED AN UPBEAT SURVEY ON THE BUSINESS OUTLOOK THE TREASURY'S 30YEAR BENCHMARK LOST OVER 1 3/8 POINTS ITS YIELD ROSE TO 592 CATERPILLAR AND CUMMINS ENGINE REPORTED STRONG THIRDQUARTER EARNINGS INCREASES BOOSTED BY BRISK DEMAND FOR HEAVY EQUIPMENT AND THEIR OWN EFFORTS TO BOOST PRODUCTIVITY AT&T'S EARNINGS ROSE 11 IN THE THIRD QUARTER DESPITE FLAT REVENUE FROM LONGDISTANCE SERVICES AND AN OPERATING LOSS AT ITS NCR COMPUTER UNIT PRUDENTIAL AGREED WITH REGULATORS TO PAY A TOTAL OF AT LEAST 371 MILLION TO SETTLE ALLEGATIONS THAT IT IMPROPERLY SOLD PARTNERSHIPS IN THE 1980S SEARS REPORTED NET OF 3884 MILLION FOR THE LATEST QUARTER REFLECTING A TURNAROUND IN ITS RETAIL OPERATIONS SALOMON REPORTED A 173 MILLION LOSS IN ITS PROPRIETARY TRADING OPERATIONS IN THE THIRD QUARTER ALL BUT WIPING OUT STRONG PERFORMANCES BY ITS BROKERAGE AND INVESTMENT BANKING LINES COMPUTERVISION POSTED A THIRDQUARTER LOSS OF 543 MILLION AFTER A 5158 MILLION CHARGE TO WRITE OFF GOODWILL AND TO LAY OFF 2000 WORKERS MANVILLE'S PROFIT MORE THAN DOUBLED IN THE LATEST QUARTER TO 13 MILLION ITS RIVERWOOD PAPERPRODUCT UNIT HAD A LOSS WHILE THE SCHULLER FIBERGLASS UNIT'S OPERATING PROFIT JUMPED 60 MCDONALD'S REPORTED RECORD THIRDQUARTER PROFIT AND SAID IT IS ACCELERATING ITS WORLDWIDE GROWTH OPENING MORE THAN TWO RESTAURANTS A DAY MCI'S CHAIRMAN SAID HE IS TALKING TO CABLE AND ENTERTAINMENT COMPANIES ABOUT JOINT VENTURES OR COMBINATIONS MCI SAID NET INCOME ROSE 94 IN THE THIRD QUARTER HELPED BY MAJOR GAINS IN THE TOLLFREE LONGDISTANCE MARKET ITT SAID ITS THIRDQUARTER PROFIT MORE THAN DOUBLED TO 252 MILLION EXCEEDING ANALYSTS' EXPECTATIONS BONDS LEHMAN BROTHERS TREASURY INDEX 568633 OFF 5570 COMMODITIES OIL 1835 A BARREL OFF SEVEN CENTS DOW JONES FUTURES INDEX 12986 UP 153 SPOT INDEX 11972 UP 081 DOLLAR 10841 YEN UP 111 16685 MARKS UP 00290 9310220047 931022 BUSINESS BRIEF DIME SAVINGS BANK OF NEW YORK NET SOARED IN THIRD PERIOD DUE TO GAIN ON TAX ASSET DIME SAVINGS BANK OF NEW YORK FSB SAID NET INCOME MORE THAN DOUBLED IN THE THIRDQUARTER ON A GAIN FROM A DEFERRED TAX ASSET THE BANK EARNED A PROFIT OF 201 MILLION OR 36 CENTS A SHARE COMPARED WITH 87 MILLION OR 38 CENTS A SHARE IN THE YEAREARLIER PERIOD WHICH INCLUDED A CHARGE OF 28 MILLION OR 12 CENTS A SHARE DURING THE 1992 PERIOD DIME HAD FAR FEWER SHARES OUTSTANDING DIME SAID IT RECORDED A BENEFIT OF 251 MILLION RESULTING FROM THE RECOGNITION OF A PORTION OF ITS 200 MILLION DEFERRED TAX ASSET BY REVERSING A PORTION OF THE RESERVES AGAINST THE ASSET A SPOKESMAN SAID DIME WAS ABLE TO TAKE THAT STEP BECAUSE EFFORTS TO RAISE CAPITAL AND TO SHRINK THE THRIFT'S BUSINESS COMPLETED THIS YEAR HAVE PUT IT IN A STRONGER CAPITAL POSITION AND EARNINGS PROSPECTS NOW ARE MORE CERTAIN AS A RESULT OF THE DOWNSIZING ASSETS STOOD AT 832 BILLION DOWN 11 FROM 938 BILLION A YEAR EARLIER NONPERFORMING ASSETS DECLINED 29 TO 7385 MILLION OPERATING EARNINGS FELL SHARPLY TO 201 MILLION FROM 34 MILLION PROVISION FOR LOAN LOSSES FELL TO 76 MILLION FROM 282 MILLION 9310220046 931022 CLINTON BACKS BANK POLICY THAT INCLUDES NATIONWIDE BRANCHES HELP OVERSEAS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON HAS APPROVED A BANKING POLICY THAT INCLUDES NATIONWIDE BRANCHING REGULATORY STREAMLINING AND MEASURES THAT WILL HELP US BANKS AND BROKERS COMPETE ABROAD MR CLINTON SIGNED OFF ON THE POLICY THIS WEEK TREASURY SECRETARY LLOYD BENTSEN IS SCHEDULED TO ANNOUNCE THE OUTLINE OF THE THE DECISIONS IN A SPEECH MONDAY AND TOP TREASURY OFFICIALS WILL PROVIDE MORE DETAILS WHEN THEY APPEAR BEFORE CONGRESSIONAL COMMITTEES NEXT WEEK TO DISCUSS INTERSTATE BANKING AND FINANCIALSERVICES TRADE AS PART OF THE EFFORT THE ADMINISTRATION WILL ENDORSE THE FAIR TRADE IN FINANCIAL SERVICES ACT WHICH WOULD EMPOWER FEDERAL REGULATORS TO BLOCK THE US EXPANSION OF BANKS SECURITIES FIRMS AND INVESTMENT ADVISERS FROM COUNTRIES THAT RESTRICT AMERICAN ACCESS TO THEIR FINANCIAL MARKETS PASSAGE OF THE BILL WHICH CONGRESS HAS DEBATED FOR YEARS WOULD STRENGTHEN THE US NEGOTIATING STANCE IN CURRENT TRADE TALKS WITH JAPAN AND IN BROADER MULTILATERAL EFFORTS TO ACHIEVE A NEW WORLDWIDE TRADE AGREEMENT IN HIS SPEECH MR BENTSEN IS EXPECTED TO STRESS THAT INTERSTATE BANKING AND REGULATORY STREAMLINING MUST BE ACCOMPLISHED IN WAYS THAT PROTECT THE SAFETY AND SOUNDNESS OF THE BANKING SYSTEM AND ADVANCE MR CLINTON'S GOALS OF MAKING CREDIT MORE WIDELY AVAILABLE TO BUSINESSES AND POOR URBAN AND RURAL AREAS ADMINISTRATION OFFICIALS SAID THAT MR BENTSEN WILL APPEAL TO CONGRESS TO COMPLETE WORK ON TWO PIECES OF FINANCIAL LEGISLATION BEFORE BEGINNING WORK ON PROPOSALS TO STRIP AWAY LAWS THAT PREVENT BANKS FROM OPERATING NATIONWIDE BRANCH NETWORKS THE ADMINISTRATION WANTS CONGRESS TO APPROVE THE MONEY NECESSARY TO FINISH CLOSING DOWN FAILED SAVINGSANDLOAN ASSOCIATIONS AND PAYING OFF THEIR DEPOSITORS IT ALSO WANTS CONGRESS TO ENACT MR CLINTON'S PROPOSAL TO ESTABLISH A 382 MILLION FUND TO BOLSTER COMMUNITY DEVELOPMENT BANKS AND OTHER LENDERS ESTABLISHED TO CHANNEL CREDIT INTO POOR NEIGHBORHOODS SOME ANALYSTS CONTEND THAT ALLOWING BANKS TO OPERATE NATIONWIDE BRANCH NETWORKS IS THE SINGLE MOST SIGNIFICANT STEP THE GOVERNMENT COULD TAKE TO IMPROVE THE EFFICIENCY OF THE BANKING SYSTEM NATIONSBANK CORP A LEADING PROMOTER OF INTERSTATE BANKING ESTIMATES THAT CHANGE COULD CUT INDUSTRY COSTS AS MUCH AS 10 BILLION A YEAR BY ENABLING COMPANIES TO CONSOLIDATE ORGANIZATIONS THAT ARE CURRENTLY OPERATED ON A STATEBYSTATE BASIS NEVERTHELESS MANY SMALL BANKS AND CONSUMER GROUPS OPPOSE NATIONWIDE BANKING AS A DANGEROUS STEP TOWARD FINANCIAL CONCENTRATION RECENTLY MEASURES TO ALLOW NATIONWIDE BANKING HAVE FAILED BECAUSE INSURANCE AGENTS A POWERFUL LOBBYING GROUP IN WASHINGTON HAVE USED THEM AS VEHICLES FOR PROPOSALS TO LIMIT BANK ENTRY INTO THE INSURANCE BUSINESS THE ADMINISTRATION HOPES TO SEPARATE A PROPOSAL TO ALLOW NATIOWIDE BANKING FROM OTHER QUESTIONS DEALING WITH THE PRODUCTS AND SERVICES BANKS CAN OFFER MR CLINTON HAS ALREADY LAUNCHED EFFORTS TO STREAMLINE BANK REGULATION IN MARCH HE ANNOUNCED A SERIES OF STEPS TO REMOVE REGULATORY BARRIERS TO LENDING TO SMALL BUSINESSES IN JULY HE ORDERED REGULATORS TO REWRITE COMMUNITY REINVESTMENT RULES THAT REQUIRE BANKS TO MEET LOCAL CREDIT NEEDS THE GOAL IS TO CUT THE PAPERWORK BURDEN ON BANKS WHILE ENCOURAGING THEM TO PROVIDE MORE CREDIT AND FINANCIAL SERVICES IN POOR AREAS HOWEVER THE COMPLEX PROJECT HAS FALLEN BEHIND SCHEDULE THE BANKING INDUSTRY IS PRESSING CONGRESS TO SCALE BACK PORTIONS OF A 1991 LAW THAT AIMS TO REDUCE BANK FAILURES BY TIGHTENING REGULATION THE INDUSTRY CONTENDS THE LAW WENT TOO FAR ALTHOUGH MR CLINTON WANTS TO STREAMLINE REGULATION THE ADMINISTRATION WANTS TO WEED OUT DUPLICATIVE AND CONFUSING RULES THROUGH ADMINISTRATIVE PROCEDURES BEFORE ASKING CONGRESS TO CHANGE EXISTING LAWS TREASURY OFFICIALS HAVE BEEN STUDYING THE POSSIBILITY OF CONSOLIDATING THE FOUR BANKREGULATORY AGENCIES IN ORDER TO ELMINATE OVERLAP BUT THE ADMINISTRATION HAS DECIDED THAT THE PROJECT WOULD BE TOO COMPLEX AND POLITICALLY DEMANDING TO UNDERTAKE NOW 9310220045 931022 MARKETING FOCUS ON FILM BY THOMAS R KING STUDIOS ARE OPENING MORE FILMS IN JUST A HANDFUL OF CITIES BEFORE EXPANDING THEIR RELEASES NATIONALLY WITH A FLOOD OF MOVIES BEING RELEASED FILMS WITHOUT MAJOR STARS DON'T HAVE MUCH CHANCE OF SUCCESS AT MULTIPLEXES UNLESS THEY ARE GIVEN SOME BREATHING ROOM MOVIE EXECUTIVES SAY OPEN THE FILM IN A FEW MAJOR CITIES THE STRATEGY GOES AND WAIT FOR THE CRITICS' BUZZ AND WORDOFMOUTH TO REACH THE HEARTLAND AMONG MAJORSTUDIO MOVIES TAKING THE SLOW ROUTE FEARLESS REMAINS OF THE DAY RUDY THE AGE OF INNOCENCE AND THE JOY LUCK CLUB BUT THE STRATEGY HAS ITS DRAWBACKS IF A STUDIO OPENS A FILM IN 25 CITIES WITH EXCLUSIVE RUNS AT CERTAIN THEATERS FOR EXAMPLE COMPETING THEATER CHAINS MAY REFUSE TO SHOW IT WHEN THE RUN EXPANDS PENALIZING THE STUDIO FOR NOT CHOOSING THEIR THEATERS IN THE FIRST PLACE AND IF A MOVIE DOES POORLY IN ITS LIMITED RELEASE THEATERS IN SMALLER CITIES MAY BE HESITANT TO SHOW IT AT ALL THAT HAPPENED THIS PAST AUGUST WHEN PARAMOUNT PICTURES' SEARCHING FOR BOBBY FISCHER A MOVIE ABOUT A YOUNG CHESSPLAYING GENIUS DIED QUICKLY DESPITE STRONG REVIEWS WHAT'S MORE SOME EXECUTIVES SAY STUDIOS END UP SPENDING MORE ON TV ADVERTISING FOR FILMS THAT START OUT WITH JUST A LIMITED RELEASE THE QUESTION IS DO YOU SERVICE THE LIMITED RELEASE OR JUST THE WIDE RELEASE ASKS ROB FRIED THE PRODUCER OF TRISTAR PICTURES' RUDY IT ENDS UP BEING MORE EXPENSIVE BECAUSE YOU HAVE TO SERVICE BOTH YOU END UP BUYING TWO OR THREE WEEKS OF TV ADS VS ONE WEEK DESPITE THE EXTRA COST MR FRIED BELIEVES THE LIMITED OPENING IS THE RIGHT APPROACH FOR RUDY A FILM ABOUT A YOUNG MAN WHO DREAMS OF PLAYING FOOTBALL FOR NOTRE DAME THE MOVIE OPENED OCT 13 ON 117 SCREENS AND IS ON MORE THAN 1500 AS OF TODAY WE DON'T HAVE A BIG STAR BUT WE DO HAVE A PROVOCATIVE FILM THAT'S OLDFASHIONED IN ITS MESSAGE AND ITS EMOTION MR FRIED SAYS WE HAVE TO HOPE THAT IT CATCHES ON MASSACHUSETTS IS ON A DRIVE TO CLEAN UP ITS REPUTATION AS AN AWFUL PLACE TO MAKE MOVIES HOLLYWOOD TOOK NOTICE THIS YEAR OF GOV WILLIAM WELD'S TRADE MISSION TO LOS ANGELES TO MEET WITH STUDIO EXECUTIVES AND LOBBY FOR BUSINESS THE TRIP WON THE STATE AN IMMEDIATE ASSIGNMENT COLUMBIA PICTURES' THE NEXT KARATE KID A FILM TO BE RELEASED NEXT SUMMER GOV WELD WANTED PEOPLE TO KNOW THAT HE'S THE GUY THEY CAN COMPLAIN TO SAYS LINDA PETERSON WARREN DIRECTOR OF THE STATE'S FILM OFFICE SO FAR THIS YEAR SIX MOVIES HAVE BEEN FILMED IN THE STATE UP FROM ONLY THREE ALL LAST YEAR STATE EMPLOYEES SAY THEY'VE TRIED TO CUT THE RED TAPE THAT HAS OFTEN BOGGED DOWN VISITING FILMMAKERS AND THEY'VE EASED MANY RULES ON FILMING IN STATEOWNED BUILDINGS AND PARKS AND THERE'S A PLAN TO SIMPLIFY DAILY FILM DELIVERIES BY ALLOWING FREE CURBSIDE PARKING AT BOSTON'S LOGAN INTERNATIONAL AIRPORT MASSACHUSETTS'S REPUTATION HAS SUFFERED BECAUSE IT HAS STRICT UNION GUIDELINES THAT MAKE FILMING THERE EXPENSIVE AND UNPREDICTABLE STATES THAT GET A BIGGER SHARE OF FILM PRODUCTION SUCH AS NORTH CAROLINA ALLOW FILM COMPANIES TO HIRE A MIX OF UNION AND NONUNION WORKERS BUT MS PETERSON WARREN SAYS THINGS HAVE CHANGED THE UNIONS HAVE COME TO AN UNDERSTANDING THAT IF THEY'RE NOT COMPETITIVE SOMEONE ELSE WILL BE SHE SAYS HOLLYWOOD IS WOOING COMPUTER NERDS WITH A VENGEANCE SUBSCRIBERS TO VARIOUS ONLINE INFORMATION SERVICES SUCH AS AMERICA ONLINE AND COMPUSERVE CAN NOW DOWNLOAD INTERACTIVE MULTIMEDIA KITS AND VIEW SHORT CLIPS FROM MOVIES AS WELL AS INTERVIEWS WITH DIRECTORS AND STARS ON MACINTOSH OR WINDOWSEQUIPPED COMPUTERS LAST YEAR UNIVERSAL PICTURES LINKED WITH COMPUSERVE FOR A PROMOTION IN WHICH SUBSCRIBERS COULD SEND MESSAGES TO THE DIRECTOR OF ITS COMPUTERHACKER MOVIE SNEAKERS BUT THE NEW VIDEO COMPONENTS TAKE THE CONCEPT A STEP FURTHER SUBSCRIBERS CAN VIEW 15SECOND SCENES FROM SUCH FILMS AS MALICE FATAL INSTINCT AND LOOK WHO'S TALKING NOW THERE ARE SOUND BITES FROM AN INTERVIEW WITH ROBERT ALTMAN DIRECTOR OF SHORT CUTS AMERICA ONLINE HAS JUST 400000 SUBSCRIBERS BUT HOLLYWOOD ONLINE THE SANTA MONICA CALIF COMPANY THAT DISTRIBUTES THE PROMOTIONAL MATERIALS TO THE ONLINE SERVICES SAYS STUDIOS ARE BACKING THE NEW CONCEPT BECAUSE THEY BELIEVE IT WILL SOON BECOME MUCH MORE POPULAR AND SOPHISTICATED BUT ARE COMPUTER USERS HEAVY MOVIEGOERS THESE PEOPLE ARE INFORMATION JUNKIES SAYS IRA DEUTCHMAN PRESIDENT OF FINE LINE FEATURES WHICH HAS AGREED TO PROMOTE FOUR MOVIES ON THE BULLETIN BOARDS THEY WOULDN'T BE ON LINE CHATTING ABOUT MOVIES IF THEIR ONLY INTEREST WAS COMPUTERS TO PROMOTE WAYNE'S WORLD 2 PARAMOUNT HAS SENT TO THEATERS A SHORT PREVIEW THAT SPOOFS THE FAMILIAR MOVIETHEATER PLUG FOR THE THX SOUND SYSTEM THE PREVIEW STARTS OUT THE SAME WITH BLARING SOUND AND THE LINE THE AUDIENCE IS LISTENING BUT THEN THE SOUND GOES HAYWIRE AND WAYNE AND GARTH THE GEEKY CHARACTERS FROM TV'S SATURDAY NIGHT LIVE INVADE THE SCREEN TO HAWK THEIR MOVIE SEQUEL SALES OF MOVIES ON VIDEOCASSETTE IN THE THIRD QUARTER JUMPED 17 FROM A YEAR EARLIER TO AN ESTIMATED 13 BILLION AT RETAIL ACCORDING TO ANALYSTS ALEXANDER & ASSOCIATES NEW YORK 9310220044 931022 BUSINESS BRIEF INTEL CORP FIRM TO ADD SERIAL NUMBERS TO HELP TRACK STOLEN CHIPS INTEL CORP SAID IT WILL ADD SERIAL NUMBERS TO ITS MICROPROCESSOR CHIPS IN RESPONSE TO A RASH OF ARMED ROBBERIES OF CHIPS FROM INVENTORIES OF COMPUTER MAKERS AND ELECTRONICS COMPANIES CHIPS WHICH MAY COST AS MUCH AS 500 EACH HAVE BECOME AN INCREASINGLY POPULAR TARGET OF THIEVES BECAUSE THEY ARE ALMOST IMPOSSIBLE TO TRACE IF STOLEN A FREQUENT TARGET IS INTEL'S 486 CHIP THE MOST POPULAR CENTRAL PROCESSING UNIT FOR PERSONAL COMPUTERS THE SANTA CLARA CALIF COMPANY'S CHIPS CURRENTLY CARRY BATCH NUMBERS THAT INDICATE WHERE AND WHEN THEY WERE MADE A TOOL USED IN MONITORING QUALITY AN INTEL SPOKESMAN SAID THE COMPANY WILL START KEEPING RECORDS OF SALES TO CUSTOMERS BY LOT NUMBER THE NEXT STEP WILL BE TO ESTABLISH A SERIAL NUMBER FOR EACH CHIP MAKING IT POSSIBLE TO IDENTIFY ANY CHIP THAT IS STOLEN THE SPOKESMAN SAID 9310220043 931022 REVIEW & OUTLOOK EDITORIAL VERDICTS AND VIOLENCE IT HAS BEEN A BUSY WEEK FOR THE ROOTCAUSE AFICIONADOS IT WAS THE WEEK ATTORNEY GENERAL JANET RENO CALLED TELEVISION TO ACCOUNT FOR SPREADING IDEAS OF VIOLENCE IT WAS THE WEEK NOT LEAST IN WHICH WE WERE ONCE AGAIN INSTRUCTED THAT THERE WERE ROOT CAUSES RESPONSIBLE FOR THE RAMPAGING VIOLENCE LOOSED ON THE STREETS OF LOS ANGELES TWO YEARS AGO THIS REASONING EVIDENTLY HAD ITS EFFECT ON THE JURORS WHO REFUSED TO METE OUT ANYTHING LIKE SERIOUS VERDICTS FOR THE CRIMES COMMITTED AGAINST REGINALD DENNY AND OTHERS CAUGHT UP IN THE ASSAULTS FOLLOWING THE RODNEY KING VERDICT THE LOS ANGELES JURORS' DELIBERATIONS IN THE DENNY BEATING CASE ARE OVER BUT THEIR VERDICT WILL CAST A SHADOW FOR SOME TIME TO COME THE MEANING OF THAT VERDICT IS EVIDENT IN ONE GLARING FACT NAMELY THAT A JURY COULD NOT BRING ITSELF TO DECIDE THAT DEFENDANTS WHO KICKED BEAT STOMPED AND SMASHED THEIR VICTIMS WITH BRICKS WERE GUILTY OF GREAT WRONG THE JURORS VOTED TO DENY THE UNDENIABLE REALITIES AN ENTIRE WORLD SAW PLAYED OUT ON TV SCREENS BECAUSE THEY COULD NOT RESIST THE SOCIAL PRESSURE TO DO OTHERWISE NOWHERE WAS THE FORCE OF THIS PRESSURE MORE FORTHRIGHTLY EXPRESSED THAN BY THE SPOKESMAN FOR ONE OF THE DEFENDANTS WHO APPEARED ON GOOD MORNING AMERICA THE DAY AFTER THE FIRST WRISTSLAPPING VERDICTS WERE RETURNED TO ASSERT PROUDLY THAT HE AND HIS FELLOW ACTIVISTS IN THE STREET HAD SOMEHOW FORCED THOSE VERDICTS THE ASSAULTS AGAINST COMMON SENSE AND SIMPLE LOGIC CONTINUED SPEAKING TO MORNING TELEVISION AUDIENCES THE DEFENSE ATTORNEYS FOR DAMIAN WILLIAMS AND HENRY WATSON REASONED THAT THE TWO DEFENDANTS HAD MERELY BEEN CAUGHT UP IN THE EXCITEMENT OF THE EVENTS IN SOUTH CENTRAL LOS ANGELES A RIOTER EXCITED BY REGINALD DENNY WALKS POLICE EXCITED BY RODNEY KING GO TO PRISON NO RATIONAL PERSON OF ANY POLITICAL PERSUASION WILL FAIL TO SEE THAT ANY NOTION WE MAY ONCE HAVE HAD OF COMMONLY HELD JUSTICE HAS GONE OFF THE RAILS RIGHT NOW THAT SAID WE WOULD LIKE TO SUGGEST THAT THE COUNTRY'S PRIORITIES ARE QUITE OUT OF KILTER ON THE MATTER OF VIOLENCE WHILE THE ATTORNEY GENERAL OF THE UNITED STATES IS BUSY INVEIGHING AGAINST THE NETWORKS WHICH IS A LOT EASIER THAN SAY THE POLITICALLY DELICATE BUSINESS OF GETTING TO WORK ON A PROPERLY TOUGH AND EFFECTIVE JUVENILE JUSTICE SYSTEM AND WHILE MUCH OF THE REST OF THE COUNTRY IS TALKING ABOUT THE DENNY VERDICT A MORE FAMILIAR VIOLENCE OCCURS ELSEWHERE A FEW DAYS AGO IN BROOKLYN WANDA BETTS WAS WAITING ON A BENCH FOR HER HUSBAND WITH HER SEVENYEAROLD AND TWOYEAROLD DAUGHTERS WANDA BETTS 26 WAS A SUBSTITUTE TEACHER AT A NEARBY DAY CARE CENTER AND WAS PURSUING A DEGREE IN EDUCATION SOME YOUTHS IN A NEARBY HOUSING PROJECT GOT INTO A GUN BATTLE OVER SPLITTING UP SOME STUFF THEY'D STOLEN AND WANDA BETTS WAS HIT AND KILLED WHILE TRYING TO SHIELD HER DAUGHTERS IN WASHINGTON DC THE WEEK BEFORE LAST THEY HELD A FUNERAL FOR 14YEAROLD LAUNICE SMITH SHOT IN THE HEAD AND KILLED DURING A DRUG HIT IN A PLAYGROUND WASHINGTON POST COLUMNIST WILLIAM RASPBERRY WROTE OF THE REMARKABLE FUNERAL EULOGY JESSE JACKSON DELIVERED FOR LAUNICE THAT EULOGY AND THE THINKING IT REPRESENTS DESERVES MORE ATTENTION MR RASPBERRY HIMSELF WROTE THAT TODAY'S DEADLIEST PLAGUE ON BLACK AMERICANS HAS ITS ROOTS ON THE OUTSIDE BUT ITS AGENTS ARE INSIDERS MOSTLY YOUNG DOPEDEALING BLACK MEN AND BECAUSE THEY ARE BLACK THEIR FRIGHTENED NEIGHBORS HESITATE TO INFORM ON THEM SAID MR JACKSON IT'S LIKE SEEING YOUR APARTMENT BUILDING IN FLAMES AND NOT TELLING ANYBODY BECAUSE THE LANDLORD IS BLACK THE TENANTS ARE BLACK AND THE GUYS WHO SET THE FIRE ARE BLACK THEY THINK THEY'RE BEING DISLOYAL TO THE RACE IF THEY TELL IT NO THEY WILL BURN THE RACE UP WHAT'S REQUIRED FOR THIS SOCIETY AS A WHOLE TO GO FORWARD IS MORE SENSE AND REASON LIKE THIS UTTERED BY MR JACKSON AND MR RASPBERRY AND A LOT LESS OF THE SORT OF IRRELEVANCY AND HUMBUG SUCH AS THAT PUT ABOUT BY ATTORNEY GENERAL RENO TONY BROWN THE BLACK TV COMMENTATOR ONCE REMARKED THAT THE PATHOLOGIES THAT PLAGUE BLACK COMMUNITIES ARE OFTEN A PRECURSOR OF TROUBLES THAT SPREAD TO THE LARGER SOCIETY THAT IS A STRONG POINT THERE HAS INDEED BEEN A SOCIAL BREAKDOWN OF IMMENSE PROPORTIONS IN SOUTH CENTRAL LOS ANGELES THE BROWNSVILLE SECTION OF BROOKLYN SOUTHEAST WASHINGTON AND ELSEWHERE BUT WE SUSPECT YOU'D FIND BROAD AGREEMENT THAT THERE'S BEEN A GENERALIZED COARSENING EVERYWHERE IN THIS COUNTRY OF ATTITUDES TOWARD MATTERS OF PERSONAL BEHAVIOR AND MORAL RESPONSIBILITY THE CHEERING FRIENDS OF WATSON AND WILLIAMS ARE HARDLY UNIQUE IN THEIR VIEW THAT WHAT'S MAINLY IMPORTANT IN AMERICA NOW IS TO GET OFF FOR NOW REGINALD DENNY IS HOME AND SAFE IN HIS NEIGHBORHOOD THE SURVIVING NEIGHBORS OF WANDA BETTS AND LAUNICE SMITH ARE NOT SAFE IN THEIR NEIGHBORHOODS FINALLY WHAT WE LEARNED LISTENING TO SENATOR HOLLINGS ATTORNEY GENERAL RENO AND THE REST DISCUSSING BEAVIS AND BUTTHEAD IS THAT WASHINGTON IS THE LAST PLACE TO LOOK FOR HELP NOW 9310220040 931022 BUSINESS BRIEF AMGEN INC THIRDQUARTER NET ROSE 16 AFTER ONETIME TAX BENEFIT BIOTECHNOLOGY LEADER AMGEN INC'S THIRDQUARTER NET INCOME ROSE 16 TO 1027 MILLION OR 72 CENTS A SHARE AFTER A ONETIME TAX BENEFIT OF 96 MILLION EXCLUDING THE BENEFIT FROM TAXLAW CHANGES PERSHARE EARNINGS WERE 65 CENTS A FEW PENNIES ABOVE ANALYSTS' FORECASTS REVENUE CLIMBED 17 TO 3549 MILLION FROM 3034 MILLION IN THE YEAREARLIER QUARTER NET INCOME WAS 889 MILLION OR 60 CENTS A SHARE WE'RE BACK ON TRACK WITH NEUPOGEN SALES AND OUR CREDIBILITY WITH WALL STREET SAID LOWELL SEARS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AMGEN OF THOUSAND OAKS CALIF FALTERED IN FEBRUARY WHEN IT SAID SALES OF NEUPOGEN A CANCERTREATMENT DRUG HAD REACHED A SUDDEN SLOWDOWN IN MOMENTUM AMGEN SHARES CLOSED AT 44 UP 50 CENTS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE EARNINGS REPORT CAME AFTER MARKETS CLOSED 9310220039 931022 BUSINESS BRIEF ICN PHARMACEUTICALS INC DRUG COMPANY SETS DEC 15 FOR SHAREHOLDERS MEETING ICN PHARMACEUTICALS INC SET DEC 15 AS THE DATE FOR ITS SHAREHOLDERS MEETING PAVING THE WAY FOR A SHOWDOWN WITH STOCKBROKER RAFI KHAN WHO HAS VOWED TO WAGE A PROXY FIGHT AT THE MEETING THE RECORD DATE FOR THE ANNUAL MEETING IS NOV 2 IT WAS SCHEDULED FOR MAY BUT WAS POSTPONED AFTER MR KHAN'S THREATENED PROXY FIGHT TO OUST CHAIRMAN MILAN PANIC AND OTHER MEMBERS OF THE COSTA MESA CALIF DRUG COMPANY'S BOARD ICN DIDN'T SAY WHY IT SCHEDULED THE MEETING MR KHAN YESTERDAY FILED A LAWSUIT IN A DELAWARE STATE COURT TO FORCE THE MEETING TO BE HELD AN ICN SPOKESMAN SAID THE COMPANY'S DECISION TO HOLD THE MEETING WAS MADE BEFORE THE FILING MR KHAN IS AWAITING SECURITIES AND EXCHANGE COMMISSION APPROVAL BEFORE SOLICITING CONSENTS TO UNSEAT MR PANIC AND OTHER DIRECTORS A FEDERAL JUDGE EARLIER THIS WEEK DENIED ICN'S REQUEST TO BLOCK THE SOLICITATION 9310220038 931022 BUSINESS BRIEF TEXTRON INC NET ROSE 17 IN 3RD QUARTER ON GAINS IN FINANCE AIRCRAFT TEXTRON INC POSTED A 17 RISE IN NET INCOME FOR THE THIRD QUARTER REFLECTING CONTINUED GAINS IN ITS FINANCIAL SERVICES AND AIRCRAFT MAKING SECTORS THE PROVIDENCE RI MAKER OF HELICOPTERS AIRPLANES CAR PARTS AND PROVIDER OF FINANCIAL SERVICES REPORTED NET ROSE TO 995 MILLION OR 110 A SHARE FROM 835 MILLION OR 95 CENTS A SHARE REVENUE CLIMBED 10 TO 22 BILLION FROM 2 BILLION PROFIT AT ITS FINANCIAL SERVICES SECTOR WHICH INCLUDES AVCO FINANCIAL SERVICES JUMPED 14 TO 1581 MILLION EARNINGS AT THE AEROSPACE DIVISION WHICH INCLUDES BELL HELICOPTER AND THE CESSNA AIRCRAFT CO ROSE 7 TO 862 MILLION BUT PROFIT DECLINED 14 TO 313 MILLION AT THE COMMERCIAL PRODUCTS DIVISION IN COMPOSITE BIG BOARD TRADING YESTERDAY TEXTRON SHARES ROSE 25 CENTS TO 5550 9310220037 931022 BUSINESS BRIEF CREATIVE TECHNOLOGY LTD PC PRODUCT MAKER'S PROFIT SURGED IN FIRST FISCAL PERIOD CREATIVE TECHNOLOGY LTD POWERED BY ACQUISITIONS ALLIANCES AND PRODUCTS SAID ITS NET INCOME IN THE FISCAL FIRST QUARTER MORE THAN DOUBLED TO 212 MILLION CREATIVE A MAKER OF SOUND AND VIDEO PRODUCTS FOR PERSONAL COMPUTERS SAID EARNINGS OF 49 CENTS A SHARE IN THE PERIOD ENDED SEPT 30 COMPARE WITH PROFIT OF 103 MILLION OR 26 CENTS A SHARE A YEAR EARLIER SALES MORE THAN DOUBLED TO 1129 MILLION FROM 441 MILLION A YEAR EARLIER CREATIVE BASED IN SINGAPORE WITH ITS CREATIVE LABS INC UNIT FOR NORTH AMERICAN SALES MARKETING AND CUSTOMER SUPPORT BASED IN MILPITAS CALIF SAID IT EXPANDED ITS FAMILY OF 16BIT SOUND BLASTER AUDIO BOARDS WITH THREE NEW OFFERINGS IN THE QUARTER 9310220036 931022 THE SECRET TO COMPETITIVENESS BY WILLIAM LEWIS THERE ARE MANY REASONS OFFERED WHY INDUSTRIES IN ONE COUNTRY BECOME INTERNATIONALLY COMPETITIVE YET DEBATERS OF ALL STRIPES SEEM TO AGREE ON ONE FACT THE US TRAILS ITS GLOBAL ECONOMIC RIVALS IN GERMANY AND JAPAN WHEN IT COMES TO THE GOOD OLDFASHIONED ART OF MAKING THINGS IF YOU WANT HIGH QUALITY SUPER PRODUCTIVITY GREAT ENGINEERING AND FINE CRAFTSMANSHIP THE MODELS TO FOLLOW ARE IN STUTTGART OR OSAKA NOT CLEVELAND OR SO GOES THE CONVENTIONAL WISDOM MY COLLEAGUES AND I RECENTLY PUT THIS WISDOM TO THE TEST BY ACTUALLY EXAMINING LABOR PRODUCTIVITY IN NINE REPRESENTATIVE MANUFACTURING INDUSTRIES IN GERMANY JAPAN AND THE US AUTOS AUTO PARTS METALWORKING STEEL COMPUTERS CONSUMER ELECTRONICS SOAP AND DETERGENT BEER AND PROCESSED FOOD WE ADJUSTED BOTH FOR DIFFERENCES IN PRODUCT QUALITY AND FOR FLUCTUATIONS IN THE BUSINESS CYCLE THE RESULTS OF THIS STUDY BY MCKINSEY'S GLOBAL INSTITUTE ARE ILLUMINATING NOT ONLY FOR THE FACTS THEY DEBUNK AND ESTABLISH BUT FOR THE EXPLANATIONS THAT LIE BENEATH THOSE FACTS PUT SIMPLY GLOBAL COMPETITIVENESS IS A BIT LIKE TENNIS YOU GET BETTER BY PLAYING AGAINST PEOPLE WHO ARE BETTER THAN YOU JAPAN LEADS IN FIVE INDUSTRIES AUTOS AUTO PARTS CONSUMER ELECTRONICS METALWORKING AND STEEL THE US LEADS IN FOUR COMPUTERS PROCESSED FOOD SOAP AND DETERGENT AND BEER AND HAS CLOSED MUCH OF THE GAP IN AUTOS REMARKABLY GERMANY LEADS IN NO INDUSTRIES AND IS A DISTANT THIRD IN SIX OUT OF NINE INCLUDING AUTOS AND AUTO PARTS WHERE IT IS OFTEN CITED AS EXEMPLARY BECAUSE MORE JAPANESE ARE EMPLOYED IN PRODUCING FOOD THAN IN PRODUCING STEEL CARS AUTO PARTS AND METALWORKS COMBINED THE WEIGHTED AVERAGE OF JAPANESE WORKER PRODUCTIVITY IN THESE NINE CASE STUDIES IS ACTUALLY LESS THAN THAT IN THE US AND ONLY A LITTLE HIGHER THAN THAT IN GERMANY USING THE US AS AN INDEX OF 100 JAPAN'S WORKER PRODUCTIVITY WORKED OUT TO 83 AND GERMANY'S TO 79 THE SIZE OF SOME OF THE INDIVIDUAL INDUSTRY PRODUCTIVITY GAPS IS SURPRISINGLY LARGE JAPAN STILL LEADS THE WORLD IN STEEL PRODUCTIVITY BY NEARLY 50 THE US FOOD INDUSTRY LEADS JAPAN BY NEARLY 70 AND THE GERMAN BEER INDUSTRY EVEN ADJUSTED FOR DIFFERENCES IN QUALITY TRAILS THE US BY BETTER THAN 50 THIS IN ITSELF IS SOMEWHAT NOTEWORTHY WITH TECHNOLOGICAL KNOWHOW AND CAPITAL ESSENTIALLY FULLY MOBILE AMONG GERMANY JAPAN AND THE US AND WITH WORKERS IN THESE THREE MARKET ECONOMIES NOT SIGNIFICANTLY DIFFERENT IN EDUCATIONAL ATTAINMENT AND HEALTH IT SEEMS REASONABLE TO EXPECT THAT BY 199045 YEARS AFTER WORLD WAR II PRODUCTIVITY IN THESE THREE COUNTRIES WOULD BE FAIRLY CLOSELY MATCHED TO UNDERSTAND WHY THAT IS NOT THE CASE AND TO DISCOVER WHETHER THE LARGE DIFFERENCES IN LABOR PRODUCTIVITY WITHIN EACH OF THESE INDUSTRIES OFFER OPPORTUNITIES FOR THE FOLLOWERS TO CATCH UP WE INVESTIGATED THE CAUSES OF THE PRODUCTIVITY DIFFERENCES WITHIN EACH OF OUR NINE INDUSTRIES WHY THE PRODUCTIVITY GAPS CONVENTIONAL EXPLANATIONS SUCH AS DIFFERENT MANUFACTURING TECHNOLOGIES AND ECONOMIES OF SCALE DO PLAY A ROLE IN EXPLAINING THE GAPS IN METALWORKING STEEL FOOD PROCESSING AND BEER BUT ELSEWHERE THESE FACTORS DON'T GO VERY FAR IN EXPLAINING THE GAPS NOR IS IT THE EDUCATION AND SKILL OF FRONTLINE WORKERS WORKERS IN EACH OF THESE COUNTRIES ARE MORE OR LESS EQUALLY SKILLED NOR IS IT THE COST OF RAW MATERIALS WHICH ARE ESSENTIALLY EQUALLY PRICED AROUND THE WORLD HIGH PRODUCTIVITY IT SEEMS TURNS ON THE ABILITY OF MANAGERS TO INVENT NEW AND EVER MORE EFFICIENT WAYS OF MAKING PRODUCTS AND ON THE ABILITY OF ENGINEERS TO DESIGN PRODUCTS THAT ARE EASY TO MAKE WHETHER IN THE FOOD INDUSTRY IN THE US OR THE AUTO INDUSTRY IN JAPAN MANAGERS AND ENGINEERS DO NOT ARRIVE AT THESE INNOVATIONS BECAUSE THEY ARE SMARTER WORK HARDER OR ARE BETTER EDUCATED THAN THEIR PEERS NO THEY DO SO BECAUSE THEY MUST THEY ARE SUBJECTED TO INTENSE GLOBAL COMPETITION WHERE CONSTANTLY PUSHING THE BOUNDARIES OF PRODUCTIVITY IS THE PRICE OF THE TICKET IN THE DOOR THE CONVERSE IS TRUE AS WELL MOST OF THE PRODUCTIVITY LAGGARDS HAVE BEEN PROTECTED FROM THE PAINFUL RIGORS OF GLOBAL COMPETITION BY GOVERNMENTS THE NINE INDUSTRIES SPEAK WITH ONE VOICE GLOBAL COMPETITION BREEDS HIGH PRODUCTIVITY PROTECTION BREEDS STAGNATION THE DEGREE OF GLOBAL EXPOSURE DEPENDS ON THE LAWS AND REGULATIONS GOVERNING TRADE AND INVESTMENT AND THE STRUCTURE OF THE MARKET FOR CORPORATE CONTROL OF THE THREE COUNTRIES THE US WAS THE MOST EXPOSED TO TRADE TRANSPLANTS FOREIGN DIRECT INVESTMENT AND FOREIGN MERGERS AND ACQUISITIONS ALTHOUGH THE JAPANESE HEAVY MANUFACTURING AND CONSUMER ELECTRONICS INDUSTRIES ARE NOT SIGNIFICANTLY EXPOSED AT HOME THROUGH TRADE OR THE CAPITAL MARKETS THEY ARE SUBSTANTIALLY EXPOSED IN OTHER MARKETS THROUGH TRADE AND FOREIGN DIRECT INVESTMENT IN CONTRAST THE LOWPRODUCTIVITY JAPANESE MANUFACTURING INDUSTRIES HAVE VIRTUALLY NO EXPOSURE TO GLOBAL COMPETITION SO TOO IN GERMANY WHERE MANUFACTURERS FACE MOST OF THEIR COMPETITION SOLELY WITHIN EUROPE THE EUROPEAN COMMUNITY'S VOLUNTARY RESTRAINT AGREEMENTS WITH JAPAN PROVIDE SUBSTANTIAL PROTECTION FOR THE AUTOMOTIVE AND METALWORKING INDUSTRIES FOR EXAMPLE IN ADDITION PROCEDURAL BARRIERS MAKE TRANSPLANTS IN TRADITIONAL INDUSTRIES DIFFICULT TO ESTABLISH IN GERMANY AND FINALLY THE SHAREHOLDINGS AND VOTINGRIGHT PROXIES OF THE MAIN BANKS IN GERMANY RESULT IN A CAPITAL MARKET VIRTUALLY CLOSED TO FOREIGN MERGERS AND ACQUISITIONS AS A RESULT GERMAN MANUFACTURERS ARE COMPETING PRIMARILY REGIONALLY NOT GLOBALLY THE PRESSURE TO INNOVATE IS LOW AND WHAT OF THE INNOVATIONS THEMSELVES THE MECHANISM FOR TRANSFERRING THESE PRODUCTIVITY IMPROVEMENTS FROM COMPANY TO COMPANY AND NATION TO NATION IS NOTABLE AS WELL FOREIGN DIRECT INVESTMENTS TRANSPLANT FACTORIES PLAY THE PIVOTAL ROLE IN MOVING THEM AROUND THE WORLD IN FACT FOREIGN DIRECT INVESTMENT HAS BEEN FAR MORE POWERFUL THAN TRADE AS A FORCE FOR IMPROVING PRODUCTIVITY ESPECIALLY IN GERMANY AND THE US TRANSPLANTS FROM LEADINGEDGE PRODUCERS 1 DIRECTLY CONTRIBUTE TO HIGHER LEVELS OF DOMESTIC PRODUCTIVITY 2 PROVE THAT LEADINGEDGE PRODUCTIVITY CAN BE ACHIEVED WITH LOCAL LABOR AND MANY LOCAL INPUTS 3 PUT COMPETITIVE PRESSURE ON OTHER DOMESTIC PRODUCERS AND 4 TRANSFER KNOWLEDGE OF THE BEST PRACTICES TO OTHER DOMESTIC PRODUCERS THROUGH THE NATURAL MOVEMENT OF PERSONNEL MOREOVER FOREIGN DIRECT INVESTMENT HAS PROVOKED LESS POLITICAL OPPOSITION THAN TRADE BECAUSE IT CREATES JOBS INSTEAD OF DESTROYING THEM THUS IT IS LIKELY TO GROW FASTER THAN TRADE IN YEARS TO COME JAPANESE AUTOMOBILE ASSEMBLY TRANSPLANTS IN THE US HAVE BEEN ESPECIALLY IMPORTANT IN IMPROVING DOMESTIC PRODUCTIVITY AND IN STIMULATING US PRODUCERS ESPECIALLY FORD TO IMPROVE THEIR PRODUCTIVITY COMPUTER TRANSPLANTS FROM THE US HAVE PROVIDED SUBSTANTIAL PRODUCTION IN EUROPE SINCE THE BEGINNINGS OF THE INDUSTRY IN 1990 SUCH TRANSPLANTS ACCOUNTED FOR 56 OF TOTAL COMPUTER PRODUCTION IN EUROPE THEY ARE LARGELY RESPONSIBLE FOR THE FACT THAT GERMANY'S PRODUCTIVITY IN COMPUTERS IS NEARLY EQUAL TO THAT OF THE US AND JAPAN FURTHERMORE MULTINATIONAL SOAP AND DETERGENT COMPANIES INCLUDING COLGATEPALMOLIVE PROCTER & GAMBLE AND UNILEVER HAVE SUBSTANTIAL PRODUCTION FACILITIES IN ALMOST ALL MARKETS BUT WHILE PRODUCTIVITY GAPS POINT TO REAL OPPORTUNITIES FOR PRODUCTIVITY FOLLOWERS AND TRAILING INDUSTRIES TO LEARN AND ADOPT BEST PRACTICES THEY ALSO POINT TO A PROFOUND COMPETITIVE THREAT BIG DIFFERENCES IN PRODUCTIVITY IN INTERNATIONAL INDUSTRIES MEAN BIG OPPORTUNITIES FOR HIGHPRODUCTIVITY COMPANIES USING FOREIGN DIRECT INVESTMENT THESE LEADINGEDGE GLOBAL PRODUCERS COULD NOT ONLY TAKE HUGE MARKET SHARE AND PROFITS FROM LOCAL INDUSTRIES BUT COULD ACTUALLY RAISE STANDARDS OF LIVING IN THE HOST COUNTRIES THEIR HIGHER PRODUCTIVITY TRANSLATES INTO HIGHER WAGES BETTER JOBS AND BETTER JOB SECURITY FOR WORKERS IN THE TRANSPLANT FACTORIES AND THE SURROUNDING AREAS GOVERNMENT PROTECTION OR EVEN LOCAL CONSUMER LOYALTY ARE NOT RELIABLE FOUNDATIONS FOR LONGTERM ECONOMIC HEALTH OR THE CONTINUED EXISTENCE OF UNPRODUCTIVE REGIONAL COMPANIES EVENTUALLY THE BATTLE IS WON BY THE MOST PRODUCTIVE WHAT WILL HAPPEN TO THE GERMAN AUTO INDUSTRY WHEN JAPANESE TRANSPLANTS IN BRITAIN START EXPORTING CARS IN LARGE NUMBERS TO CONTINENTAL EUROPE OR TO THE JAPANESE PACKAGED FOOD INDUSTRY AS GLOBAL PACKAGED FOODS GIANTS BEGIN TO TAKE AIM ASK THE US STEEL OR AUTO INDUSTRY MERELY DOING ALL RIGHT AGAINST REGIONAL COMPETITION IS NOT A SUFFICIENT TEST WHEN THE BEST PRACTICES ARE LURKING SOMEWHERE ELSE AROUND THE GLOBE MR LEWIS IS A PARTNER IN THE WASHINGTON OFFICE OF MCKINSEY & CO 9310220035 931022 BUSINESS BRIEF RYDER SYSTEM INC THIRDQUARTER NET FELL 29 HURT BY A TAX ADJUSTMENT RYDER SYSTEM INC HURT BY A ONETIME TAX ADJUSTMENT SAID THIRDQUARTER EARNINGS FELL 29 THE MIAMIBASED TRANSPORTATION SERVICES COMPANY POSTED NET INCOME OF 278 MILLION OR 36 CENTS A SHARE DOWN FROM 391 MILLION OR 49 CENTS A SHARE A YEAR EARLIER THE RECENT QUARTER INCLUDED AN ADJUSTMENT OF 94 MILLION OR 12 CENTS A SHARE REFLECTING THE RECENTLY ENACTED INCREASE IN FEDERAL INCOMETAX RATES EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES JUMPED 23 RYDER SAID TO 567 MILLION FROM 462 MILLION A YEAR EARLIER QUARTERLY REVENUE ROSE 38 TO 104 BILLION FROM 101 BILLION THE RESULTS WHICH WERE SLIGHTLY BELOW ANALYSTS' EXPECTATIONS REFLECTED STRONG GROWTH IN THE COMPANY'S VEHICLE LEASING AND SERVICES DIVISION WHERE PRETAX PROFIT ROSE 40 TO 592 MILLION FROM 424 MILLION A YEAR EARLIER BUT PRETAX PROFIT IN THE AUTOMOTIVECARRIERS SEGMENT FELL 42 TO 52 MILLION FROM 9 MILLION IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE RYDER CLOSED AT 2825 DOWN 1375 9310220034 931022 COPIES OF SEC DOCUMENTS TO BE FREE VIA COMPUTER WASHINGTON THE CLINTON ADMINISTRATION HAS APPROVED A PILOT PROJECT TO PROVIDE COMPUTERIZED COPIES OF SECURITIES AND EXCHANGE COMMISSION DOCUMENTS FREE OF CHARGE 24 HOURS AFTER THE FILINGS ARE MADE THE DOCUMENTS WOULD BE MADE AVAILABLE ON THE INTERNET COMPUTER NETWORK A DECENTRALIZED COMPUTER NETWORK THAT HAS BEEN USED PRIMARILY BY ACADEMICS BUT IS GROWING RAPIDLY TO INCLUDE SMALL BUSINESSES CLINTON TECHNOLOGY OFFICIALS SEE THE INTERNET AS A PRECURSOR TO A HIGHSPEED NETWORK THEY CALL THE INFORMATION SUPERHIGHWAY AND ARE PROVIDING FUNDING FOR A SERIES OF EXPERIMENTS TO SEE HOW THE INTERNET CAN BE USED MORE FULLY CURRENTLY SEC DOCUMENTS ARE PROVIDED FREE AT THE AGENCY'S WASHINGTON LIBRARY BUT THE AGENCY CHARGES CORPORATIONS TO GET COMPUTERIZED VERSIONS OF THE FILINGS AS SOON AS THOSE DOCUMENTS ARE MADE PUBLIC THOSE COMPANIES IN TURN CHARGE CUSTOMERS FOR INSTANTANEOUS COMPUTERIZED ACCESS TO THE FILINGS THE SEC DOCUMENTS PROJECT ON THE INTERNET IS BEING FUNDED BY THE NATIONAL SCIENCE FOUNDATION 9310220033 931022 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 9310220031 931022 SHORT INTEREST ON BIG BOARD DECLINES 27 BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER SURGING TO RECORD LEVELS SINCE MIDJULY SHORT INTEREST ON THE NEW YORK STOCK EXCHANGE DECREASED 27 AT MIDOCTOBER BIG BOARD SHORT INTEREST TOTALED 1193909475 SHARES DOWN FROM A RECORD 1227089538 A MONTH EARLIER SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE HOWEVER CONTINUED TO CLIMB ATTAINING 100921530 SHARES UP FROM 92833749 ADJUSTED REPORTED IN MIDSEPTEMBER THE LATEST FIGURE MARKS THE SECOND HIGHEST MONTHLY SHORT INTEREST IN AMEX HISTORY MERCK & CO CONTINUED TO HOLD SWAY AS THE COMPANY WITH THE HIGHEST BIG BOARD SHORT INTEREST 257 MILLION SHARES REPRESENTING A JUMP OF 21 MILLION SHARES FROM THE MIDSEPTEMBER FIGURE CHRYSLER CORP RETAINED ITS RUNNERUP POSITION WITH 18 MILLION SHARES SHORTED WHILE WALT DISNEY CO'S SHORT INTEREST LEVEL EDGED UP TO 163 MILLION SHARES WALMART STORES INC WHOSE SHORT INTEREST HAD RISEN 18 MILLION SHARES IN THE PREVIOUS PERIOD POSSIBLY REFLECTING EXPECTATIONS OF MIXED RETAIL SALES RESULTS IN AUGUST AND WORRIES ABOUT THE PRESIDENT'S TAX PACKAGE EXPERIENCED A DECREASE OF 15 MILLION SHARES TO 163 MILLION SHORTED MATTEL INC'S LEVEL CONTINUED TO SOAR REACHING 144 MILLION SHARES UP 28 MILLION SHARES THE COMPANY HAS PROPOSED TO ACQUIRE FISHERPRICE INC FOR 11 BILLION BLOCKBUSTER ENTERTAINMENT CORP SAW ITS POSITION DECLINE THE COMPANY SAID IT WOULD ACQUIRE 600 MILLION IN PREFERRED STOCK OF VIACOM INC WHICH IS TUSSLING WITH QVC NETWORK INC IN A BID TO ACQUIRE PARAMOUNT COMMUNICATIONS INC TRADERS WHO SELL SECURITIES SHORT BORROW STOCK AND SELL IT BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE FOR RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS RISING SHOT INTEREST IN THE PAST HAS BEEN CONSIDERED BULLISH BY SOME ANALYSTS BECAUSE SHORT INTEREST TRADERS WOULD BE REQUIRED TO BUY BACK LARGE QUANTITIES OF SHARES THEY HAVE BORROWED HOWEVER SHORT PROGRAM TRADING OF LARGE VOLUMES OF SECURITIES BY INSTITUTIONAL INVESTORS THAT INVOLVES HEDGING AGAINST OTHER INVESTMENT RISKS RATHER THAN PURE BETS AGAINST INDIVIDUAL STOCKS MAY HAVE REDUCED THE EFFECTIVENESS OF THIS MEASURE OTHERS SAY THE LEVEL OF NEGATIVE SENTIMENT MEASURED BY THE BIG BOARD SHORT INTEREST RATIO PLUNGED TO 439 FROM 490 THE RATIO IS THE NUMBER OF TRADING DAYS AT THE EXCHANGE'S AVERAGE DAILY TRADING VOLUME THAT WOULD BE REQUIRED TO CONVERT THE TOTAL SHORT INTEREST POSITION AVERAGE DAILY BIG BOARD VOLUME WAS 2718 MILLION SHARES THE FOLLOWING TABLES SHOW THE BIG BOARD AND AMEX ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 200000 SHARES EXISTED AT MIDOCTOBER OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDSEPTEMBER SEE ACCOMPANYING TABLES WSJ OCT 22 1993 9310220030 931022 WHO'S NEWS BROWN GROUP INC BROWN GROUP INC ST LOUIS SHERMAN H LASSER 52 YEARS OLD FORMER PRESIDENT OF FOOTWEAR IMPORTER ETIENNE AIGNER WAS NAMED SENIOR VICE PRESIDENT AND GENERAL MANAGER OF THE NATURALIZER DIVISION OF THIS FOOTWEAR AND SPECIALTYRETAILING CONCERN HE SUCCEEDS MICHAEL J BECKWITH WHO LEFT THE COMPANY 9310220029 931022 BUSINESS BRIEF MCDONALD'S POSTS RECORD 3RDPERIOD NET SPEEDS STORE OPENINGS TO OVER TWO A DAY OAK BROOK ILL MCDONALD'S CORP POSTED RECORD THIRDQUARTER PROFIT AND SAID IT IS ACCELERATING ITS GLOBAL GROWTH OPENING MORE THAN TWO RESTAURANTS A DAY IN THE LATEST QUARTER EARNINGS ROSE 75 TO 3109 MILLION OR 85 CENTS A SHARE FROM 2892 MILLION OR 79 CENTS A SHARE A YEAR AGO THIS YEAR THERE WERE 107 MILLION OR ABOUT 29 FEWER SHARES OUTSTANDING REVENUE TOTALED 194 BILLION UP 17 WHILE SYSTEMWIDE SALES REPRESENTING THOSE OF FRANCHISED AFFILIATE AND COMPANY STORES ROSE 6 TO 62 BILLION BUT WEAK FOREIGN CURRENCIES AND A HIGHER US TAX RATE TRIMMED THIRDQUARTER EARNINGS BELOW ANALYSTS' EXPECTATIONS WALL STREET'S PERSHARE CONSENSUS HAD BEEN 88 CENTS DESPITE THE DISPARITY MCDONALD'S STOCK RALLIED ON NEWS OF THE RESULTS SHARES GAINED 25 CENTS TO 54375 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING THE COMPANY CALCULATED THAT HAD CURRENCIES REMAINED AT YEARAGO EXCHANGE LEVELS OVERSEAS REVENUE WOULD HAVE RISEN 12 RATHER THAN FALLEN 2 MCDONALD'S SAID ITS EFFECTIVE TAX RATE WAS 357 FOR THE YEAR TO DATE COMPARED WITH 338 IN 1992 IT CITED US TAX LAW CHANGES AND LOWER FOREIGN TAX BENEFITS IN THE NINE MONTHS MCDONALD'S EARNED 818 MILLION OR 219 A SHARE COMPARED WITH 7307 MILLION OR 199 A SHARE A YEAR AGO COMPANY REVENUE ROSE 32 TO 54 BILLION WHILE SYSTEMWIDE SALES INCREASED 78 TO 174 BILLION MCDONALD'S SAID IT HAS EXCELLENT MOMENTUM WORLDWIDE ALTHOUGH SALES IN JAPAN ITS LARGEST OVERSEAS MARKET CONTINUE TO LAG DESPITE WEAK ECONOMIES IN CANADA AND LATIN AMERICA THE COMPANY SAID ITS BUSINESS THERE IS IMPROVING THE CHAIN'S GLOBAL EXPANSION CONTINUES AT A RAPID PACE THROUGH THE FIRST NINE MONTHS 576 UNITS OPENED MOST OF THEM OVERSEAS AND 355 ARE UNDER CONSTRUCTION THE 900 OR SO RESTAURANTS EXPECTED TO BE OPENED THIS YEAR ARE AT THE HIGH END OF EARLIER MANAGEMENT FORECASTS AND A SPOKESMAN SAID THAT FIGURE IS LIKELY TO BE REPEATED IN 1994 LAST YEAR MCDONALD'S ADDED 675 STORES CURRENTLY IT HAS 13669 RESTAURANTS OPERATING IN 68 COUNTRIES SAUDI ARABIA WILL BE ADDED BY YEAR END THE COMPANY SAID 9310220028 931022 COMMODITIES CRUDEOILFUTURES PRICES FOR DECEMBER DECLINE DESPITE ANTICIPATION OF OPEC PRODUCTION CUTS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IS BEGINNING TO CUT BACK ON RUNAWAY OIL PRODUCTION IT IS TOO EARLY TO MAKE AN ACCURATE ASSESSMENT OF VOLUMES FOR THE MONTH BUT ACCORDING TO MONITORS OF OPEC'S OUTPUT EARLY INDICATIONS ARE THAT OCTOBER PRODUCTION IS DOWN FROM SEPTEMBER'S 247 MILLION BARRELS A DAY THERE ARE NO HARD NUMBERS AVAILABLE AT THE MOMENT FROM THE TANKER TRACKERS BUT IT WOULD SEEM THAT PRODUCTION WILL COME VERY CLOSE TO THE TARGETED 245 MILLION BARRELS A DAY SAID MICHAEL ROTHMAN FIRST VICE PRESIDENT FOR MERRILL LYNCH COMMODITY RESEARCH OPEC'S PRODUCTION IS A CRUCIAL FACTOR IN THE OILPRICE OUTLOOK IN LATE SEPTEMBER THE EXPORTERS SET A SIXMONTH OUTPUT CEILING OF 245 MILLION BARRELS A DAY IN AN EFFORT TO PROP UP PRICES WHICH HAD BEEN FALLING FOR MUCH OF THE YEAR BECAUSE OF OPEC'S OVERPRODUCTION PRICES DID RECOVER SLIGHTLY AFTER THE OPEC MEETING BUT IN RECENT DAYS PRICES HAVE GROWN SHAKY AGAIN AS TRADERS AWAIT WORD ON OPEC'S OCTOBER PRODUCTION NOW OIL ANALYSTS SAY CONFIRMATION THE OPEC NATIONS ARE ADHERING TO THEIR NEW PRODUCTION QUOTAS IS LIKELY TO TRIGGER A SIGNIFICANT PRICE INCREASE WE EASILY COULD HAVE A DOLLAR A BARREL TO GAIN IN THIS MARKET OR MAYBE 2 OVER THE NEXT FEW MONTHS UNLESS A POOR HEATINGOIL SEASON LIMITS THE REBOUND IN CRUDE PRICES SAID SARAH EMERSON MARKET ANALYST FOR ENERGY SECURITY ANALYSIS INC A WASHINGTON FIRM THAT MONITORS WORLDOIL SUPPLIES PETROLEUM PRICES GENERALLY WERE LOWER YESTERDAY AT LEAST IN US FUTURES TRADING ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR DECEMBER DELIVERY DROPPED SEVEN CENTS A BARREL TO SETTLE AT 1835 CLOSING FUTURES PRICES FOR BRENT CRUDE WERE MIXED ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE AFTER A LATE SELLOFF WHILE INCREASED SUPPLIES FROM SUCH NONOPEC PRODUCING AREAS AS THE NORTH SEA WILL OFFSET SOME OF ITS OUTPUT REDUCTIONS OPEC IS BANKING ON A SEASONAL RISE IN DEMAND TO HELP SUPPORT ITS CAMPAIGN FOR HIGHER OIL PRICES DESPITE SLUGGISH ECONOMIES IN MOST MAJOR OILCONSUMING NATIONS OIL DEMAND WILL JUMP SEASONALLY AS THE PEAKUSE PERIOD OF WINTER NEARS ALSO SOME ANALYSTS SAID DEMAND FOR OPEC'S OIL IN THE FOURTH QUARTER MAY BE HIGHER THAN IS GENERALLY PREDICTED I THINK DEMAND IS TURNING AND WE DON'T KNOW IT YET SAID BRYAN JACOBOSKI SENIOR OIL ANALYST AT PAINEWEBBER INC HE ESTIMATED THE FOURTHQUARTER CALL ON OPEC OIL WILL BE MORE THAN 25 MILLION BARRELS A DAY AS A RESULT WITHDRAWALS FROM WORLDOIL INVENTORIES LIKELY WILL BE HIGHER THAN USUAL FOR THE FOURTH QUARTER THIS COULD BE ONE OF THE BIGGEST FOURTHQUARTER DRAWDOWNS CLOSE TO ONE MILLION BARRELS A DAY IN MANY YEARS MR JACOBOSKI SAID MERRILL LYNCH'S MR ROTHMAN ALSO EXPECTS LARGER WITHDRAWALS FROM INVENTORIES THAN USUAL LOOKING BACK OVER THE LAST DECADE HE SAID WITHDRAWALS TYPICALLY AVERAGE 200000 TO 400000 BARRELS A DAY IN THE FOURTH QUARTER THIS YEAR HE EXPECTS THE DRAWDOWN TO BE AS MUCH AS 11 MILLION BARRELS A DAY DRAWDOWNS OF THAT SIZE WOULD SUGGEST THAT PRICES SHOULD FIRM QUITE STRONGLY IN THE FOURTH QUARTER SAID PAUL MLOTOK OF MORGAN STANLEY & CO THE PRICE OF WEST TEXAS INTERMEDIATE THE US BENCHMARK CRUDE SHOULD REACH 20 A BARREL BEFORE YEAR END MR MLOTOK AN OIL ECONOMIST SAID HE FORECASTS IT WILL AVERAGE 21 A BARREL NEXT YEAR IN OTHER COMMODITY MARKETS YESTERDAY LIVESTOCK & MEATS THE AGRICULTURE DEPARTMENT IS EXPECTED TO REPORT AFTER THE CLOSE OF TRADING TODAY THAT THE FEEDLOT INVENTORY IS RISING RAPIDLY THE REPORT IS A LEADING INDICATOR OF THE RED MEAT SUPPLY BECAUSE FEEDLOTS FATTEN YOUNG CATTLE FOR SLAUGHTER CHARLES LEVITT SENIOR MEAT ANALYST AT ALARON TRADING CORP CHICAGO SAID HE EXPECTS THE DEPARTMENT'S QUARTERLY 13STATE SURVEY TO SHOW A 10 RISE IN THE NUMBER OF CATTLE ON FEEDLOTS ON OCT 1 COMPARED WITH THE SAME 1992 DATE SUCH A REPORT WOULD SIGNAL MEAT SUPPLIES ABUNDANT ENOUGH TO KEEP A LID ON BEEF PRICES IN THE WINTER ACCORDING TO MR LEVITT RANCHERS PROBABLY PLACED MORE CATTLE ONTO FEEDLOTS DURING THE THIRD QUARTER THAN ANY THIRD QUARTER SINCE 1987 THE MIGRATION WAS FUELED BY AMONG OTHER THINGS DROUGHT DAMAGE TO SOUTHEAST GRAZING PASTURES IN TRADING AT THE CHICAGO MERCANTILE EXCHANGE THE CATTLE CONTRACT FOR OCTOBER DELIVERY ROSE 04 CENT A POUND TO SETTLE AT 7377 CENTS A POUND PRECIOUS METALS GOLD FUTURES PRICES GOT AN EARLY LIFT FROM A HALFPOINT CUT IN LEADING GERMAN INTEREST RATES BUT LATESESSION PROFITTAKING IN NEW YORK TOOK THE METAL LOWER ON THE DAY RATE CUTS BY THE BUNDESBANK THE GERMAN CENTRAL BANK HAVE TENDED TO SUPPORT GOLD LOWER GERMAN RATES INCREASE PROSPECTS FOR STRONGER GROWTH IN EUROPE ONE OF THE WORLD'S MOST IMPORTANT CENTERS OF JEWELRY DEMAND FOR GOLD TRADERS SAID ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY SLID 1 TO 37280 AN OUNCE THE ACTIVE DECEMBER CONTRACT HAD TRADED IN A RANGE BETWEEN 37670 AND 371 YESTERDAY WE JUST RAN INTO A LOT OF RESISTANCE AROUND 37650 SAID IAN MACDONALD SENIOR GOLD TRADER WITH CREDIT SUISSE IN NEW YORK WE'VE HAD A VERY CONSISTENT MOVE UP SINCE MIDSEPTEMBER AND YOU'VE GOT TO EXPECT A TECHNICAL CORRECTION IN THE NEAR FUTURE MR MACDONALD SAID DECEMBER SILVER FUTURES SLID 13 CENT TO SETTLE AT 4530 ON THE COMEX HAVING BEEN AS HIGH AS 460 THE LOW FOR THE DAY WAS 450 IN CHOPPY TRADING DEALERS SAID 9310220026 931022 ECONOMY CLINTON TO LIMIT HEALTHCARE SUBSIDIES FOR POOR PEOPLE AND SMALL BUSINESSES BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON RESPONDING TO CHARGES THAT SPENDING ON HIS HEALTH PLAN COULD RUN OUT OF CONTROL HAS TENTATIVELY DECIDED TO SET A LEGAL CEILING ON THE TOTAL AMOUNT OF SUBSIDIES AVAILABLE TO LOWINCOME PEOPLE AND SMALL BUSINESSES THE HEALTHCARE OVERHAUL BILL MR CLINTON PLANS TO SUBMIT TO CONGRESS NEXT WEEK REQUIRES ALL EMPLOYERS TO PAY MOST OF THE COST OF THEIR WORKERS' HEALTH COVERAGE BUT FEDERAL SUBSIDIES WILL BE OFFERED TO EASE THE BURDEN ON SMALL AND LOWWAGE BUSINESSES AND TO HELP LOWINCOME AND UNEMPLOYED PEOPLE AFFORD HEALTH COVERAGE THE ASSISTANCE IS ESTIMATED TO COST MORE THAN 400 BILLION IN THE FIRST FIVE YEARS BUT FOR POLITICAL AND POLICY REASONS THE PRESIDENT DOESN'T WANT TO PROPOSE AN OPENENDED ENTITLEMENT PROGRAM IN THIS ERA OF BUDGETARY RESTRAINT ADMINISTRATION OFFICIALS SAID CONSEQUENTLY OFFICIALS SAID THEY ARE LOOKING FOR WAYS TO LIMIT THE OVERALL PAYMENTS THE FEDERAL GOVERNMENT COULD MAKE UNDER THE SUBSIDY PROGRAM SUCH A LIMIT COULD CREATE POLITICAL PROBLEMS OF ITS OWN THE CONCEPT HAS UPSET AT LEAST ONE KEY SUPPORTER OF THE PRESIDENT'S PLAN REP HENRY WAXMAN D CALIF CHAIRMAN OF ONE OF THE TWO PRINCIPAL HEALTH SUBCOMMITTEES IN THE HOUSE HAS COMPLAINED THAT IT WOULD CREATE UNCERTAINTY ABOUT THE GOVERNMENT'S COMMITMENT TO HELP THOSE WHO CAN'T AFFORD COVERAGE ALREADY MANY SMALL BUSINESSES ARE SUSPICIOUS ABOUT THE GOVERNMENT'S SINCERITY IN PROPOSING THE SUBSIDIES MOREOVER THERE IS SOME DISAGREEMENT AMONG THE PRESIDENT'S ADVISERS ABOUT WHAT TO DO IF THE SUBSIDY DEMAND REACHES THE LEGAL CEILING SEVERAL ECONOMIC AND POLITICAL AIDES ARE PUSHING FOR AN AUTOMATIC REDUCTION IN THE SUBSIDIES PAID TO EACH BUSINESS AND INDIVIDUAL IF THE NUMBER OF PEOPLE AND COMPANIES QUALIFYING RAISES THE SUBSIDY POOL TO THE LIMIT BUT SOME HEALTH OFFICIALS SUCH AS HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA WOULD PREFER THAT CONGRESS BE GIVEN THE AUTHORITY TO DECIDE WHAT ACTION TO TAKE THE POSSIBLE OPTIONS FOR LAWMAKERS INCLUDE REDUCING INDIVIDUAL SUBSIDY PAYMENTS OR RAISING TAXES TO ACCOMMODATE INCREASED SUBSIDY DEMAND ROBERT REISCHAUER DIRECTOR OF THE NONPARTISAN CONGRESSIONAL BUDGET OFFICE SAID CAPPING THE SUBSIDIES WOULD PREVENT WIDE FLUCTUATIONS IN THE GOVERNMENT'S FINANCIAL OBLIGATION WHAT YOU'D EXPECT IS THERE WOULD BE A CYCLICAL COMPONENT SO WHEN THERE ARE MORE PEOPLE OUT OF WORK AND WAGES DIDN'T GROW AS RAPIDLY THE SUBSIDY COSTS WOULD GO UP THEN WHEN THE ECONOMY RECOVERS AND PEOPLE GO BACK TO WORK AND WAGES GO UP AT A HEALTHY CLIP THE SUBSIDY COSTS WOULD FALL HE SAID SUCH A LIMIT COULD CREATE POLITICAL PROBLEMS OF ITS OWN THE CONCEPT HAS UPSET AT LEAST ONE KEY SUPPORTER OF THE PRESIDENT'S PLAN REP HENRY WAXMAN D CALIF CHAIRMAN OF ONE OF THE TWO PRINCIPAL HEALTH SUBCOMMITTEES IN THE HOUSE HAS COMPLAINED THAT IT WOULD CREATE UNCERTAINTY ABOUT THE GOVERNMENT'S COMMITMENT TO HELP THOSE WHO CAN'T AFFORD COVERAGE ALREADY MANY SMALL BUSINESSES ARE SUSPICIOUS ABOUT THE GOVERNMENT'S SINCERITY IN PROPOSING THE SUBSIDIES INCLUSION OF SUBSIDY CAPS IN THE CLINTON PLAN WOULD MAKE THE BILL MORE PALATABLE TO REPUBLICANS AND CONSERVATIVE DEMOCRATS THE WHITE HOUSE SUFFERED A SETBACK IN ITS ATTEMPTS TO REACH OUT TO BOTH OF THOSE GROUPS YESTERDAY WHEN THREE CENTRIST SENATE DEMOCRATS AND ONE REPUBLICAN OFFERED THEIR OWN VERSION OF A MANAGED COMPETITION HEALTHCARE PLAN SEN JOHN BREAUX D LA DESCRIBED THE BIPARTISAN PLAN SIMILAR TO ONE ADVANCED IN THE HOUSE BY REP JIM COOPER D TENN AS A MORE MODERATE MARKETBASED ALTERNATIVE TO THE ADMINISTRATION PROPOSAL COSPONSORS OF THE PLAN ARE SENS SAM NUNN D GA JOSEPH LIEBERMAN D CONN AND DAVID DURENBERGER R MINN THE BREAUX PLAN WOULD EXPAND ACCESS TO HEALTH CARE BY PROHIBITING INSURERS FROM REFUSING TO COVER ANYONE AND BY FINANCING HEALTHCARE PREMIUMS FOR ALL PEOPLE BELOW THE POVERTY LINE THOSE WITH INCOMES BETWEEN 100 AND 200 OF THE POVERTY STANDARD WOULD RECEIVE SUBSIDIES ON A SLIDING SCALE BUT THE PROPOSAL WOULDN'T ASSURE UNIVERSAL COVERAGE OR REQUIRE EMPLOYERS TO PURCHASE INSURANCE FOR THEIR WORKERS IT REJECTS FEDERALLY IMPOSED HEALTH SPENDING CAPS BUT SEEKS TO CONTROL COSTS BY LIMITING THE TAX DEDUCTIBILITY OF EMPLOYERPROVIDED HEALTH BENEFITS IN ADDITION ABOUT 20 REPUBLICANS AND DEMOCRATS FROM BOTH HOUSES OF CONGRESS MET FOR ABOUT AN HOUR IN RHODE ISLAND REPUBLICAN SEN JOHN CHAFEE'S OFFICE TO DISCUSS THE POSSIBLITY OF FORGING A MIDDLE GROUND IN THE HEALTHCARE DEBATE AMONG THOSE WHO ATTENDED THE SESSION WERE SENS DURENBERGER BREAUX LIEBERMAN DAVID BOREN D OKLA BOB KERREY D NEB JOHN DANFORTH R MO CHRISTOPHER BOND R MO AND PETE DOMENICI R NM AS WELL AS REPS COOPER FRED GRANDY R IOWA NANCY JOHNSON R CONN MIKE ANDREWS D TEXAS CHARLES STENHOLM D TEXAS AND BILL THOMAS R CALIF AND AIDES TO SENS NUNN AND NANCY KASSEBAUM R KAN RICK WARTZMAN AND JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9310220025 931022 WHO'S NEWS FHP NAMES HACKEN COCHIEF EXECUTIVE AND PRESIDENT OF FIRM FOUNTAIN VALLEY CALIF FHP INTERNATIONAL CORP SAID IT SET UP AN OFFICE OF THE CHIEF EXECUTIVE AND NAMED A DIRECTOR MARK B HACKEN COCHIEF EXECUTIVE AND PRESIDENT MR HACKEN SHARES THAT TITLE WITH WESTCOTT W PRICE III WHO FORMERLY WAS THE SOLE CHIEF EXECUTIVE AND PRESIDENT OF THE MANAGEDCARE AND INSURANCE CONCERN THE BOARD DECIDED IT WOULD BE PRUDENT TO ENLARGE THE OFFICE TO TWO PEOPLE TO BUILD A STRONGER SENIOR MANAGEMENT BENCH MR PRICE SAID I THINK THIS IS A VERY GOOD THING FOR THE COMPANY MR HACKEN 58 YEARS OLD HAD WORKED WITH FHP IN RECENT YEARS AS A CONSULTANT DEVELOPING AN OVERTHECOUNTER PHARMACY OPERATION AND A HOMEMEDICAL EQUIPMENT OPERATION HE FORMERLY HEADED THREE LARGE PHARMACY CHAINS MR PRICE 54 WAS NAMED PRESIDENT OF FHP IN 1989 AND CHIEF EXECUTIVE IN 1990 9310220024 931022 WHO'S NEWS THIOKOL CORP THIOKOL CORP OGDEN UTAH JAMES R WILSON 52YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS ELECTED TO THE BOARD OF THIS AEROSPACE CONCERN HE SUCCEEDS JOHN MYERS 56 WHO RESIGNED THIS MONTH 9310220023 931022 MARKETING BRIEF DR PEPPER/SEVENUP COS SOFTDRINK MAKER POSTS NET FOR 3RD PERIOD ON SALES RISE DR PEPPER/SEVENUP COS SAID AGGRESSIVE ADVERTISING HELPED BOOST SALES GROWTH OF ITS CORE SOFTDRINK BRANDS AT A RATE ROUGHLY DOUBLE THAT OF MAJOR COMPETITORS AS THE COMPANY REPORTED NET INCOME OF 232 MILLION OR 35 CENTS A SHARE FOR ITS THIRD QUARTER IT HAD A LOSS OF 31 MILLION OR NINE CENTS A SHARE A YEAR EARLIER THE RESULTS AHEAD OF ANALYSTS' ESTIMATES LED SHARES UP 375 CENTS TO CLOSE AT 2125 ON THE NEW YORK STOCK EXCHANGE SALES ROSE 11 TO 1869 MILLION FROM 1688 MILLION A YEAR AGO ANALYSTS SAY PEPSICOLA AND COCACOLA BRANDS SAW VOLUME GROWTH OF 4 TO 5 THIS SUMMER FOR ITS FIRST NINE MONTHS DALLASBASED DR PEPPER SAID PROFIT WAS 566 MILLION OR 89 CENTS A SHARE INCLUDING A ONETIME CHARGE OF 16 MILLION IT HAD A LOSS OF 897 MILLION OR 253 A SHARE A YEAR EARLIER INCLUDING A ONETIME CHARGE OF 748 MILLION SALES ROSE 71 TO 5402 MILLION FROM 5043 MILLION A YEAR EARLIER 9310220022 931022 INTERNATIONAL TAIWAN STAYS NEUTRAL ON STALLED BRITISH AEROSPACE VENTURE SPECIAL TO THE WALL STREET JOURNAL TAIPEI TAIWAN THE TAIWAN GOVERNMENT REMAINS NEUTRAL ON THE STALLED VENTURE BETWEEN TAIWAN AEROSPACE CORP AND BRITISH AEROSPACE PLC THE VICE MINISTER OF ECONOMIC AFFAIRS YANG SHIHCHIEN SAID OPPOSITION LAWMAKERS HAVE DEMANDED THE GOVERNMENT ABANDON THE PROJECT SAYING IT WOULD WASTE TAXPAYERS' MONEY EXECUTIVES OF TAC AND BAE MET TO NEGOTIATE THE VENTURE WHICH HAD FACED FINANCING PROBLEMS AND DISPUTES IN TECHNOLOGY TRANSFER BUT DETAILS OF THE TALKS WERE NOT AVAILABLE TAC OFFICIALS SAID THEY PLANNED TO ANNOUNCE DEVELOPMENTS FROM THE LATEST ROUND OF NEGOTIATION TODAY IF THE PROJECT CAN HELP BOOST THIS NATION'S AEROSPACE INDUSTRY WE WOULD LOVE TO SEE THE SUCCESSFUL OUTCOME OF THE VENTURE MR YANG SAID BUT IN CASE IT FAILS WE HOPE BOTH SIDES ARE STILL FRIENDS HE MADE THE REMARKS AFTER MEETING WITH RICHARD NEEDHAM BRITISH MINISTER OF TRADE WHO ARRIVED IN TAIWAN THIS WEEK TO DRUM UP SUPPORT FOR THE 775 MILLION DEAL MR NEEDHAM SAID THE BRITISH WOULD NOT INTERFERE WITH THE VENTURE BUT HE ADDED IT IS A VERY GOOD IDEA FOR THE TWO COMPANIES TO GET TOGETHER MR NEEDHAM SAID THE AEROSPACE DEAL APPARENTLY WILL INVOLVE TECHNOLOGY TRANSFER BUT HE ADDED THAT THE TWO COMPANIES SHOULD WORK OUT THE DETAILS PRIVATELY TAC WHICH IS 29 GOVERNMENTOWNED SIGNED A CONTRACT WITH BAE LAST JANUARY TO FORM A 50MED AVRO INTERNATIONAL AEROSPACE FOR THE PRODUCTION OF BRITISH AEROSPACE'S RJ FAMILY OF REGIONAL JETS AND DEVELOPMENT OF RJX JETS TAC OFFICIALS DEMANDED MAJOR CHANGES IN THE VENTURE CLAIMING THE RJ JETS WERE NOT AS COMPETITIVE AS EXPECTED 9310220021 931022 THREE OIL FIRMS POST IMPROVED RESULTS REFLECTING HEALTHY REFINING OPERATIONS BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL MOBIL CORP AMOCO CORP AND SUN CO REPORTED IMPROVED THIRDQUARTER EARNINGS REFLECTING THEIR HEALTHY REFINING AND MARKETING OPERATIONS MOBIL'S NET JUMPED 61 SURPASSING ANALYSTS' EXPECTATIONS AMOCO'S NET ROSE 48 WHILE SUN SWUNG TO A PROFIT FROM A YEAREARLIER LOSS THE SHARP DROP IN CRUDEOIL PRICES IN RECENT MONTHS HAS BEEN A NEGATIVE FACTOR FOR MANY MAJOR OIL COMPANIES BUT FOR COMPANIES THAT DEPEND MORE ON THE RETAIL SECTOR OF THE GASOLINE BUSINESS WHERE PUMP PRICES HAVE BEEN DECLINING MORE SLOWLY THAN PRICES FOR CRUDES LOWER CRUDE PRICES HAVE BEEN A BENEFIT MOBIL AND AMOCO BOTH HAVE HEAVY EXPOSURE TO THE REFINING AND MARKETING SECTOR IN THE US WHICH HELPED THEM TO OVERCOME LOWER RESULTS FROM THEIR EXPLORATION AND PRODUCTION BUSINESSES MOBIL IS ALSO HEAVILY INVOLVED IN REFINING AND MARKETING IN THE FAR EAST AND SUN IS PRIMARILY A REFINING AND MARKETING COMPANY SO IT BENEFITED GREATLY FROM THE LOWER CRUDE PRICES IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING MOBIL SHARES ROSE 125 CENTS TO 80625 AND SUN ROSE 1 TO 31 BUT AMOCO SHARES DROPPED 1 TO 55625 EXCLUDING SPECIAL ITEMS MOBIL'S OPERATING PROFIT ROSE 40 TO 613 MILLION OR 150 A SHARE ANALYSTS HAD BEEN EXPECTING MOBIL TO REPORT NET INCOME OF 115 TO 120 A SHARE COSTCUTTING AND RESTRUCTURING PROGRAMS THAT WERE UNDER WAY APPEAR TO HAVE COME TO FRUITION MORE QUICKLY THAN EXPECTED ESPECIALLY IN THE REFINING AND MARKETING SECTOR FOR INSTANCE MOBIL'S GASOLINE SALES WERE UP 15 SAID MICHAEL MAYER ANALYST FOR WERTHEIM SCHRODER & CO IN SAN FRANCISCO SALES FOR THE INDUSTRY ARE UP BY ONLY 2 THE OIL GIANT'S REFINING AND MARKETING RESULTS IN THE US AND ABROAD IMPROVED SIGNIFICANTLY TO 354 MILLION FROM 33 MILLION THE COMPANY HAS BEEN REWORKING ITS US DOWNSTREAM OPERATIONS WITH A MAJOR UPGRADING PROJECT AT ITS BEAUMONT REFINERY NOW FULLY OPERATIONAL US REFINING AND MARKETING EARNINGS WERE 139 MILLION COMPARED WITH A LOSS OF 19 MILLION A YEAR EARLIER INTERNATIONAL EARNINGS ROSE FOR THE SECTOR ROSE TO 215 MILLION FROM 130 MILLION MOBIL'S REVENUE INCREASED 26 TO 1623 BILLION FROM 1581 BILLION BUT ACCORDING TO MOBIL CHAIRMAN ALLEN MURRAY EARNINGS IN EXPLORATION AND PRODUCTION WERE DOWN REFLECTING A SIGNIFICANT DECLINE OF ABOUT 4 A BARREL IN WORLDWIDE CRUDE OIL PRICES WHICH REACHED THEIR LOWEST LEVELS IN FIVE YEARS OPERATING RESULTS FOR THE THIRD QUARTER OF 1993 WERE ABOUT THE SAME AS LAST YEAR'S THIRD QUARTER SAID H LAURANCE FULLER AMOCO CHAIRMAN HE SAID CONTINUING COSTREDUCTION EFFORTS HELPED THE QUARTER'S RESULTS AMOCO'S EXPLORATION AND PRODUCTION PROFIT DECLINED ACROSS THE BOARD BUT PROFIT FROM THE REFINING AND MARKETING SECTOR JUMPED TO 225 MILLION FROM 143 MILLION THE INCREASE IN EARNINGS FROM THIS SECTOR REFLECTED HIGHER REFINED PRODUCT MARGINS PRIMARILY RESULTING FROM LOWER CRUDEOIL COSTS CHEMICAL EARNINGS FELL TO 60 MILLION FROM 67 MILLION REVENUE WAS FLAT AT 722 BILLION SUN'S OPERATING PROFIT FOR THE QUARTER WAS 61 MILLION COMPARED WITH 17 MILLION A YEAR EARLIER SUN CHAIRMAN ROBERT CAMPBELL SAID THE EARNINGS GROWTH WAS LARGELY THE RESULT OF A MORE PROFITABLE MARKETING SECTOR WHICH LOGGED QUARTERLY PROFIT OF 26 MILLION COMPARED WITH 11 MILLION REVENUE SLID 20 TO 238 BILLION FROM 298 BILLION A YEAR EARLIER RETAIL GASOLINE SALES INCREASED TO 29 MILLION FROM 26 MILLION AND SUN'S LOSS FROM THE WHOLESALE FUELS BUSINESS NARROWED TO 3 MILLION FROM 15 MILLION 9310220020 931022 WHO'S NEWS STUDENT LOAN MARKETING ASSOCIATION STUDENT LOAN MARKETING ASSOCIATION WASHINGTON THIS FINANCIAL INTERMEDIARY SERVING THE GOVERMENTGUARANTEED STUDENT LOAN MARKET ALSO KNOWN AS SALLIE MAE SAID ALBERT L LORD EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER WILL LEAVE THE COMPANY IN FEBRUARY NO SUCCESSOR HAS BEEN NAMED 9310220019 931022 WHO'S NEWS STRIDE RITE NAMES SIEGEL AS CHAIRMAN PRESIDENT AND CEO CAMBRIDGE MASS STRIDE RITE CORP NAMED AS ITS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE ROBERT SIEGEL WHO JOINS THE FOOTWEAR COMPANY FROM HIS POST AS PRESIDENT OF DOCKER'S USA A DIVISION OF LEVI STRAUSS & CO IN NAMING MR SIEGEL THE MAKER OF KEDS SPERRY TOPSIDER AND STRIDE SHOES HAS ONCE AGAIN SHOWED A PREFERENCE FOR MARKETING TALENT OVER SHOE EXPERIENCE AT HIS NEW POST MR SIEGEL 55 YEARS OLD SUCCEEDS ERVIN R SHAMES A FOODMARKETING SPECIALIST WHO RESIGNED FROM STRIDE RITE IN JUNE TO BECOME PRESIDENT OF BORDEN INC PREVIOUSLY THE COMPANY HAD ALSO BEEN GROOMING RONALD JACKSON A TOYINDUSTRY EXECUTIVE BEFORE HE LEFT TO HEAD FISHERPRICE INC MR SIEGEL JOINS STRIDE RITE AT A DIFFICULT TIME LATELY THE SNEAKER AND CASUAL SHOE MAKER HAS FACED STIFF COMPETITION FROM CHEAP RIVALS LAST MONTH STRIDE RITE AGREED TO PAY 72 MILLION TO SETTLE ANTITRUST CHARGES THAT IT CUT SHIPMENTS TO RETAILERS THAT WOULDN'T AGREE TO CHARGE FULL LIST PRICE FOR ITS KEDS SHOES IN PICKING MR SIEGEL COMPANY SPOKESMAN DAVID FURHMAN SAID WE WERE LOOKING FOR A MARKETING PERSON AND STRATEGIST MR SIEGEL WHO HAS WORKED FOR THE SAN FRANCISCOBASED LEVI STRAUSS ORGANIZATION FOR 29 YEARS HAS A PROVEN TRACT RECORD OF BEING AN INNOVATIVE MERCHANDISER AND VISIONARY HE ADDED MR SIEGEL IS EXPECTED TO JOIN STRIDE RITE IN MIDDECEMBER JOHN PHELAN THE COMPANY'S FORMER VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER WHO WAS BROUGHT BACK FROM RETIREMENT TO SERVE AS INTERIM PRESIDENT AND CEO FOUR MONTHS AGO WILL STEP DOWN FROM THOSE POSITIONS FOLLOWING MR SIEGEL'S ARRIVAL THE COMPANY SAID 9310220018 931022 ITT CORP POSTS SHARP RISE IN NET FOR THIRD QUARTER BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ITT CORP'S THIRDQUARTER NET INCOME MORE THAN DOUBLED EXCEEDING ANALYSTS' EXPECTATIONS AS THE COMPANY REPORTED STRONG GAINS IN MANY OF ITS BUSINESSES ITT POSTED NET OF 252 MILLION OR 203 A SHARE COMPARED WITH 113 MILLION OR 94 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE FELL 54 TO 52 BILLION ITT ALSO ANNOUNCED A SHIFT IN ITS INCENTIVE BONUS PROGRAM FROM A CASH AND STOCK MIX TO AN ALLSTOCK PROGRAM TWOTHIRDS OF THE OPTIONS CAN BE EXERCISED WHEN ITT STOCK HITS 115 A SHARE THE REMAINING THIRD CAN BE EXERCISED WHEN ITT STOCK REACHES 129 A SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY ITT SHARES FELL 75 CENTS TO 9175 THIS REALLY REINFORCES WHAT'S BEEN GOING ON AT ITT FOR THE PAST 18 MONTHS SAID JACK KELLY AN ANALYST AT GOLDMAN SACHS & CO IT REALLY PUTS EXECUTIVES IN TUNE WITH THE SHAREHOLDERS REVENUE FOR THE QUARTER DECLINED AS THE WEAK EUROPEAN ECONOMY AND UNFAVORABLE EXCHANGE RATES CONTINUED TO HAMPER THE CONGLOMERATE'S INTERNATIONAL BUSINESSES ESPECIALLY IN ITS AUTOMOTIVE PRODUCTS WORLD DIRECTORIES AND FLUID TECHNOLOGY AREAS MOREOVER WHILE PROFIT INCREASED DRAMATICALLY AT THE DEFENSE AND ELECTRONICS DIVISION REVENUE AT THE UNIT CONTINUED TO DECLINE DUE TO MILITARY SPENDING CUTBACKS ITT WHICH HAS INTERESTS IN FINANCIAL SERVICES INSURANCE AUTOMOTIVE DEFENSE TIMBER AND HOTELS HAD SEVERAL ONETIME ITEMS IN ITS QUARTERLY REPORT INCLUDING A CHARGE OF 20 MILLION OR 16 CENTS A SHARE FOR CUTTING CORPORATE STAFF A GAIN OF 22 MILLION OR 18 CENTS A SHARE FROM CHANGES IN INCOME TAX LEGISLATION AND A GAIN OF 23 MILLION OR 19 CENTS A SHARE FROM PORTFOLIO SALES THE 1992 THIRD QUARTER INCLUDED 807 MILLION OR 691 A SHARE IN GAINS AND 854 MILLION OR 732 A SHARE IN CHARGES THE BUSINESSES ACROSS THE BOARD BASICALLY DID PRETTY WELL SAID CAROL NEVES AN ANALYST AT MERRILL LYNCH THEY CONTINUE TO SHOW MARGIN GAINS IN THEIR BUSINESSES AND IT'S NOT AS THOUGH THEY'RE WORKING IN A ROBUST ECONOMY MS NEVES SAID THE COMPANY EXCEEDED HER OWN PROJECTIONS WHICH DON'T INCLUDE ONETIME ITEMS BY ABOUT 10 CENTS MR KELLY SAID ITT'S EARNINGS ALSO EXCEEDED HIS PROJECTIONS THOUGH HE WAS HARDPRESSED TO EXPLAIN THE STOCK'S DOWNWARD REACTION PERHAPS THERE'S A SELLER WHO HAS DECIDED NOW IS A GOOD TIME TO START TAKING PROFITS HE SAID MEANWHILE MR KELLY SAID HE EXPECTS ITT TO CONTINUE TO CUT COSTS AND IMPROVE ITS EARNINGS 9310220017 931022 ARMCO INC POSTS LOSS ON A CHARGE NUCOR NET UP 59 BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH ARMCO INC REPORTED A 223 MILLION THIRDQUARTER LOSS ON A BIG CHARGE ARISING FROM DISPOSAL OF FRINGE METAL OPERATIONS WHILE STEEL MINIMILL NUCOR CORP POSTED A 59 INCREASE IN PROFIT BOTH COMPANY'S RESULTS WERE IN LINE WITH WALL STREET'S EXPECTATIONS ALTHOUGH PROJECTIONS FOR NUCOR WERE RATCHETED DOWN IN RECENT WEEKS DUE TO SOARING SCRAPMETAL PRICES ARMCO'S SHARES WERE AT 5625 DOWN 125 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE WHILE SHARES OF NUCOR WERE AT 55125 DOWN 875 CENTS ARMCO'S LOSS EQUAL TO 219 A SHARE INCLUDED A CHARGE OF 2055 MILLION THE CHARGE RESULTED FROM DISPOSAL OF THE COMPANY'S BRAZILIAN SHEET AND STRIP OPERATIONS THE WORLDWIDE GRINDING SYSTEMS SEGMENT AND OTHER DOMESTIC BUSINESSES OMITTING THE CHARGE THE COMPANY HAD A LOSS OF 175 MILLION INCLUDING 26 MILLION IN EQUITY LOSSES FROM JOINT VENTURES AND A 64 MILLION CHARGE ARISING FROM CHANGES IN ACCOUNTING RULES FOR COVERING RETIREE HEALTH BENEFITS AND LIFE INSURANCE A YEAR EARLIER THE COMPANY POSTED A LOSS OF 252 MILLION OR 26 CENTS A SHARE WHICH INCLUDED EQUITY LOSSES FROM JOINT VENTURES TOTALING 262 MILLION AND A 54 MILLION GAIN ON THE SALE OF SOUTHWESTERN OHIO STEEL SALES DECLINED 15 TO 4198 MILLION FROM 497 MILLION ARMCO THE NATION'S SEVENTHLARGEST PRODUCER SAID THE DROP IN SALES WAS PRIMARILY CAUSED BY DIVESTITURES AND THE RESTRUCTURING OF ITS STAINLESS STEEL OPERATIONS THE COMPANY BASED IN PARSIPPANY NJ IS SHEDDING FRINGE BUSINESSES AS PART OF ITS LONGTERM STRATEGY OF FOCUSING ON STAINLESS AND ELECTRICAL STEEL NUCOR BASED IN CHARLOTTE NC HAD PROFIT OF 348 MILLION OR 40 CENTS A SHARE COMPARED WITH 204 MILLION OR 24 CENTS A SHARE IN THE YEAREARLIER QUARTER ENDED OCT 3 THE COMPANY'S SALES SWELLED TO 5873 MILLION FROM 4236 MILLION NUCOR THE NATION'S LARGEST STEEL MINIMILL WAS AIDED BY RAPID CAPACITY EXPANSION IN KEY SEGMENTS INCLUDING STRUCTURAL STEEL BUT ANALYSTS SAID SOARING SCRAPMETAL PRICES ARE CUTTING INTO NUCOR'S MARGINS MINIMILLS SUCH AS NUCOR MELT VAST AMOUNTS OF SCRAP TO PRODUCE NEW STEEL SCRAP PRICES ARE UP 40 PERCENT SINCE THE BEGINNING OF THE YEAR ON A WEIGHTED AVERAGE BASIS AND THIS CLEARLY IS A PROBLEM FOR ALL THE MINIMILLS SAID J CLARENCE MORRISON A STEEL ANALYST AT PRUDENTIAL SECURITIES INC 9310220016 931022 WHO'S NEWS CHRYSLER CORP CHRYSLER CORP HIGHLAND PARK MICH ARTHUR C LIEBLER 51 YEARS OLD FORMERLY VICE PRESIDENT OF COMMUNICATIONS WAS NAMED TO THE NEWLY CREATED POST OF VICE PRESIDENT OF MARKETING AND COMMUNICATIONS AT THE AUTO MAKER 9310220015 931022 KRONOS SEES EARNINGS FOR FISCAL 4TH PERIOD FLAT FROM YEAR AGO WALTHAM MASS KRONOS CORP PAYING HIGHER THAN EXPECTED COMMISSIONS TO SALESPEOPLE EXPECTS TO REPORT THAT EARNINGS FOR THE FISCAL FOURTH QUARTER ENDED SEPT 30 WERE ABOUT FLAT DESPITE A 20 REVENUE GAIN MARK AIN PRESIDENT SAID HE SAID THE MAKER OF COMPUTERIZED TIME CLOCKS EXPECTS TO REPORT NET INCOME BETWEEN 12 MILLION AND 14 MILLION OR 24 CENTS TO 28 CENTS A SHARE THOSE ESTIMATES WOULD BE BELOW ANALYSTS' EXPECTATIONS THAT NET WOULD RISE ABOUT 10 FROM THE YEARAGO 13 MILLION OR 26 CENTS A SHARE HE SAID KRONOS EXPECTS TO REPORT A GAIN IN REVENUE TO 19 MILLION TO 195 MILLION UP FROM 16 MILLION THE YEAR BEFORE THAT IS SOMEWHAT STRONGER THAN ANALYSTS HAD EXPECTED HE SAID MR AIN SAID THAT KRONOS'S MIX OF REVENUE CHANGED SHARPLY IN THE QUARTER WITH SALES BY DISTRIBUTORS DECLINING 3 AND SALES BY KRONOS'S OWN SALES FORCE ACCELERATING 30 BECAUSE KRONOS SALESPEOPLE EXCEEDED THEIR QUOTAS MANY HIT THE ACCELERATED PART OF THEIR BONUS PLAN HE SAID REDUCING EARNINGS MR AIN SAID THAT KRONOS WASN'T ABLE TO FILL ALL THE ORDERS IT HAD IN THE FOURTH QUARTER BUT HE SAID WE BELIEVE WE'VE NEVER BEEN BETTER POSITIONED WE FEEL VERY GOOD ABOUT THE YEAR COMING UP FOR THE CURRENT YEAR HE SAID REVENUE GROWTH COULD TOP 25 AHEAD OF THE 20 ANNUAL GAINS OF THE PAST FOUR YEARS FOR THE FISCAL YEAR ENDED SEPT 30 KRONOS EXPECTS TO REPORT NET INCOME OF 38 MILLION TO 4 MILLION OR 78 CENTS TO 82 CENTS A SHARE UP ABOUT 10 FROM 35 MILLION OR 81 CENTS A SHARE BEFORE A 53000 TAX LOSS CARRYFORWARD KRONOS EXPECTS TO REPORT THAT REVENUE FOR THE YEAR ROSE MORE THAN 15 TO BETWEEN 67 MILLION AND 675 MILLION FROM 581 MILLION 9310220013 931022 AT&T'S NET RISES 11 DESPITE LOSS AT NCR UNIT NETWORK EQUIPMENT SALES AND FINANCIAL SERVICES LED 3RDQUARTER GAIN BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO'S NET INCOME GREW 11 IN THE THIRD QUARTER DESPITE FLAT REVENUE FROM LONGDISTANCE SERVICES AND AN OPERATING LOSS AT THE STRUGGLING NCR CORP COMPUTER UNIT MOST OF AT&T'S GAINS CAME FROM STRONG PRODUCT SALES PARTICULARLY OF NETWORK GEAR USED BY PHONE COMPANIES AND AT&T'S FINANCIALSERVICE BUSINESS POSTED A 31 GAIN IN REVENUE IN THE QUARTER WITH ITS UNIVERSAL CREDIT CARD BUSINESS LEADING THE ADVANCE THIRDQUARTER NET INCOME ROSE TO 107 BILLION OR 79 CENTS A SHARE FROM 963 MILLION OR 72 CENTS A SHARE A YEAR EARLIER REVENUE TOTALED 1666 BILLION UP 3 FROM 1618 BILLION A YEAR EARLIER FOR THE FIRST NINE MONTHS OF THE YEAR AT&T POSTED A LOSS OF 353 BILLION OR 261 A SHARE REFLECTING A NONCASH CHARGE OF 664 BILLION IN THE FIRST QUARTER DUE TO NEW ACCOUNTING RULES AFFECTING RETIREE HEALTH BENEFITS AND INCOME TAXES THIS LOSS COMPARED WITH NET INCOME OF 281 BILLION OR 211 A SHARE A YEAR EARLIER AT&T CHAIRMAN ROBERT E ALLEN CALLED THE RESULTS HARDWON AND NOTED THAT THEY WERE ACHIEVED AGAINST THE BACKDROP OF A LACKLUSTER ECONOMY BUT NCR CORP WHICH WAS SUPPOSED TO MAKE AT&T A MAJOR CONTENDER IN THE COMPUTER AND DATANETWORKING ARENA AND ERASE MORE THAN 2 BILLION OF AT&T LOSSES FROM COMPUTER OPERATIONS OVER SEVEN YEARS INSTEAD HAS ONCE AGAIN MADE THE TELECOMMUNICATIONS GIANT A COMPUTER LOSER NCR'S 49 MILLION OPERATING LOSS INCLUDING 23 MILLION IN CHARGES FOR RESTRUCTURING WAS AT&T'S FIRST QUARTERLY COMPUTER LOSS SINCE IT ACQUIRED THE DAYTON OHIO SUPPLIER IN SEPTEMBER 1991 NCR'S REVENUE FELL 2 IN THE QUARTER TO 167 BILLION IN THE 1992 THIRD QUARTER NCR HAD AN OPERATING PROFIT OF 49 MILLION WHILE I ESTIMATE THAT AT&T'S NETWORK EQUIPMENT BUSINESS SHOWED A 50 INCREASE IN OPERATING PROFIT AND 7 IN REVENUES NCR'S SUCKING WIND SAID JACK B GRUBMAN TELECOMMUNICATIONS ANALYST AT PAINEWEBBER INC HE ESTIMATED THAT IF NCR HAD JUST STAYED EVEN WITH ITS RESULTS IN LAST YEAR'S THIRD QUARTER IT WOULD HAVE ADDED ANOTHER FOUR CENTS A SHARE TO AT&T'S EARNINGS LIFTING AT&T TO 15 EARNINGS GROWTH AT&T ATTRIBUTED NCR'S RESULTS TO FIERCELY COMPETITIVE PRICING MAINLY IN PERSONAL COMPUTERS WHICH NCR PLANS TO SELL THROUGH RETAIL CHANNELS UNDER THE AT&T BRAND COMPUTERPRODUCT SALES GROWTH OF 4 TO 790 MILLION WASN'T ENOUGH TO OFFSET A DECLINE IN NCR SERVICES RENTALS ELECTRONIC CHIPS SUPPLIES AND SALES OF COMPUTERS TO AT&T AFFILIATES YESTERDAY NCR CHAIRMAN JERRE STEAD EXPANDED THE SALES AND MARKETING RESPONSIBILITIES OF SEVERAL UPPERLEVEL EXECUTIVES AND ANNOUNCED A REFOCUSING OF NCR'S SALES FORCE NOW INSTEAD OF NUMEROUS SALES TEAMS CHASING THE SAME CUSTOMERS WITH DIFFERENT NCR PRODUCTS A CUSTOMER FOCUS TEAM WILL OFFER A PLATE OF NCR PRODUCTS TO EACH CUSTOMER STILL MORE NEEDS TO BE DONE SAID ROBERT B MORRIS III AN ANALYST AT GOLDMAN SACHS & CO STEAD HAS TO REVAMP NCR'S DISTRIBUTION CHANNELS SO HIS COSTS ARE LOWER MR MORRIS SAID AND HE HAS GOT TO LOOK AT NCR'S PORTFOLIO OF BUSINESS AND DECIDE WHICH ONES AT&T NEEDS THERE ARE BUSINESSES THAT COULD BE PRUNED SUCH AS LOWMARGIN PCS OTHERS SUCH AS HIGHEND VIDEO SERVERS WHICH WOULD DELIVER PROGRAMMING TO PHONE AND CABLE CUSTOMERS NEED TO BE PUSHED HARDER MR MORRIS ADDED IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY AT&T'S SHARES WERE QUOTED AT 5875 DOWN 125 AT&T DID SHOW SIGNIFICANT IMPROVEMENT IN ITS COST STRUCTURE ITS OPERATING PROFIT CLIMBED 73 TO 17 BILLION AND ITS OPERATING PROFIT MARGINS GREW TO 102 FROM 98 AT&T'S OVERALL GROSS MARGIN IMPROVED TO 397 FROM 387 BECAUSE OF A TWOPOINT INCREASE IN LONGDISTANCE MARGINS TO 388 FROM 368 A YEAR EARLIER AT&T'S LONGDISTANCE NUMBERS SHOWED THE EFFECTS OF A PROTRACTED BATTLE WITH MCI COMMUNICATIONS CORP WHOSE RESULTS CONTINUED TO BLAZE IN THE QUARTER WHILE MCI'S REVENUE GREW BY ALMOST 14 AND ITS TRAFFIC BY ALMOST 15 AT&T'S REVENUE WAS RELATIVELY FLAT AND ITS TRAFFIC VOLUME ROSE 55 MR MORRIS NOTED THAT AT&T'S 55 TRAFFIC GROWTH IS AN IMPROVEMENT GIVEN THAT THE RISE IS WITHIN STRIKING DISTANCE OF THE INDUSTRY RATE OF 66 BUT MR ALLEN AT&T'S CHAIRMAN RECENTLY SHOOK UP MANAGEMENT AT THE DIVISION PUTTING ALEX MANDL AT&T'S FORMER CHIEF FINANCIAL OFFICER IN CHARGE OF ALL COMMUNICATION SERVICES AND AT&T TRANSFERRED HARDNOSED BUSINESSSERVICES EXECUTIVE JOSEPH NACCHIO TO TAKE OVER AT&T'S CONSUMER BUSINESS WITH AN EYE TOWARD BATTLING MCI'S POPULAR FRIENDS & FAMILY DISCOUNT PLAN THE NETWORK SYSTEMS GROUP WHICH SELLS SWITCHING SYSTEMS AND TRANSMISSION GEAR TO PHONE COMPANIES HAD 191 BILLION IN REVENUE IN THE QUARTER A 7 RISE OFFICE PHONE SYSTEMS A PERENNIAL LOSER ONLY A FEW YEARS AGO AND CONSUMER PHONE SALES PUSHED OVERALL PHONE PRODUCT SALES UP 23 TO 886 MILLION IN THE QUARTER FINANCIAL SERVICES INCLUDING THE UNIVERSAL CARD AND AT&T CAPITAL CORP RACKED UP REVENUE OF 634 MILLION MOSTLY FROM THE CARD OPERATION WHICH NOW HAS 17 MILLION CARDS IN CIRCULATION UP 62 FROM 1992 AND 122 MILLION ACCOUNTS A 17 RISE 9310220012 931022 EXGRUMMAN OFFICIAL IS INDICTED IN FRAUD LINKED TO NASA DEAL WASHINGTON A FORMER GRUMMAN CORP EXECUTIVE WAS INDICTED ON CHARGES OF DEFRAUDING THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION IN 1989 IN CONNECTION WITH A SUPERCOMPUTER CONTRACT THE 22COUNT FELONY INDICTMENT FILED IN FEDERAL DISTRICT COURT IN UNIONDALE NY ACCUSES HOWARD BRODERSON A FORMER VICE PRESIDENT OF GRUMMAN'S DATA SYSTEM UNIT'S BUSINESS OPERATIONS DIVISION OF ILLEGALLY CONCEALING COST DATA FROM NASA THE CHARGES STEM FROM A PREVIOUSLY REPORTED CRIMINAL INVESTIGATION OF CLAIMS BY FEDERAL AUDITORS THAT THE COMPANY MAY HAVE OVERCHARGED THE AGENCY BY AS MUCH AS 8 MILLION ON COMPUTERRELATED WORK FOR THE JOHNSON SPACE CENTER IN HOUSTON PROSECUTORS HAVE THREATENED TO SEEK CRIMINAL CHARGES AGAINST THE COMPANY UNLESS IT AGREES TO A COMPREHENSIVE SETTLEMENT OF ALL PENDING CIVIL AND CRIMINAL CLAIMS INCLUDING ALLEGED WRONGDOING ON NAVY CONTRACTS STRETCHING BACK TO THE LATE 1980S NEITHER GRUMMAN OFFICIALS NOR MR BRODERSON COULD BE REACHED FOR COMMENT LATE YESTERDAY BUT IN THE PAST INDUSTRY AND LAWENFORCEMENT OFFICIALS HAVE SAID THAT THE NASABILLING ISSUE THREATENED TO UNDO A TENTATIVE CIVIL SETTLEMENT UNDER WHICH GRUMMAN AGREED TO PAY ABOUT 20 MILLION TO SETTLE CLAIMS INVOLVING THE NAVY CONTRACTS AND INFLUENCEPEDDLING BY FORMER GRUMMAN CHAIRMAN JOHN O'BRIEN EARLIER THIS YEAR THE COMPANY INSISTED THAT IT WOULDN'T SIGN A FINAL AGREEMENT RESOLVING THE NAVY ISSUES UNLESS IT ALSO MANAGED TO AVOID CRIMINAL CHARGES ON THE NASA CLAIMS THE INVESTIGATION OF MR BRODERSON WAS CONDUCTED BY THE JUSTICE DEPARTMENT'S PROCUREMENTFRAUD UNIT BASED IN WASHINGTON 9310220011 931022 PURCHASE OF INVESTARK BY FIRST UNITED BANCSHARES PLANNED LITTLE ROCK ARK THE STEPHENS FAMILY AGREED TO SELL INVESTARK BANKSHARES INC A SMALL BANKING CONCERN THAT HAD BECOME A STICKING POINT IN A FEDERAL RESERVE BOARD PROBE TO FIRST UNITED BANCSHARES INC FOR 261 MILLION IN STOCK CLOSELY HELD INVESTARK WITH ASSETS OF 194 MILLION IS THE PARENT OF BANK OF NORTH ARKANSAS AND THE FIRST NATIONAL BANK OF STUTTGART A BANK THAT THE FEDERAL RESERVE SUGGESTED EARLIER THIS YEAR BE CONVERTED FROM A NATIONAL BANK TO A STATE CHARTER THE POWERFUL STEPHENS FAMILY WHICH OWNS THE STEPHENS INC INVESTMENT FIRM HOLDS A 67 OWNERSHIP STAKE IN INVESTARK THE FED HAS BEEN INVESTIGATING WHETHER THE FAMILY'S TIES TO THE STUTTGART BANK AND TO WORTHEN BANKING CORP ARKANSAS'S LARGEST BANK HOLDING COMPANY VIOLATE FEDERAL BANKING LAWS IN THE CASE OF INVESTARK THE FED QUESTIONED WHETHER THE STEPHENS'S OWNERSHIP VIOLATED THE GLASSSTEAGALL ACT WHICH PROHIBITS PEOPLE WHO CONTROL SECURITIES FIRMS FROM OWNING MORE THAN 50 OF BANKS A STATECHARTERED INSTITUTION WOULD BE EXEMPT DAVID KNIGHT AN ATTORNEY FOR THE STEPHENS FAMILY SAID THE STATECHARTER APPLICATION HAS BEEN APPROVED RESOLVING THE FED'S INVESTIGATION OF THE STUTTGART BANK THE SALE OF INVESTARK HE SAID WAS NOT FOR THE PURPOSE OF SOLVING ANY REGULATORY PROBLEM THE CONVERSION TO STATE CHARTER COULD BE COMPLETED AS EARLY AS TODAY A STEPHENS SPOKESMAN SAID FIRST UNITED BASED IN EL DORADO ARK EXPECTS TO ACQUIRE THE BANK AS A STATECHARTERED INSTITUTION SAID JOHN BURNS FIRST UNITED'S AUDITOR UPON COMPLETION OF THE MERGER THE STEPHENS FAMILY WILL OWN BETWEEN 14 AND 165 OF THE COMMON STOCK OF FIRST UNITED A BANK HOLDING FIRM WITH ASSETS OF 893 MILLION THE FAMILY ALREADY HOLDS 266 OF WORTHEN 9310220010 931022 BUSINESS BRIEF SCHLUMBERGER LTD THIRDQUARTER PROFIT FELL 6 ON WEAK OIL FIELD ACTIVITY SCHLUMBERGER LTD REPORTED A SLIGHT DECREASE IN THIRDQUARTER NET INCOME DUE TO WEAK OIL FIELD ACTIVITY OVERSEAS SCHLUMBERGER WHICH IS BASED IN NEW YORK AND PROVIDES OIL FIELD SERVICES AND MEASURING AND TESTING EQUIPMENT TO THE OIL AND NATURAL GAS INDUSTRIES SAID NET FOR THE QUARTER FELL 6 TO 1627 MILLION OR 67 CENTS A SHARE FROM 1727 MILLION OR 72 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE FOR THE QUARTER ROSE SLIGHTLY TO 167 BILLION FROM 162 BILLION AT THE END OF TRADING ON THE NEW YORK STOCK EXCHANGE SCHLUMBERGER COMMON CLOSED AT 63875 CENTS DOWN 625 CENTS 9310220009 931022 BUSINESS BRIEF KDD JAPANESE CONCERN WILL CUT FEES AGAIN FOR OVERSEAS CALLS TOKYO KDD JAPAN'S LARGEST PROVIDER OF INTERNATIONAL TELECOMMUNICATIONS SERVICES WILL CUT ITS CHARGES FOR OVERSEAS CALLS AGAIN IN RESPONSE TO RATE CUTS BY ITS DOMESTIC CHALLENGERS KDD PRESIDENT HIROSHI ICHIHARA SAID A KDD SPOKESMAN SAID THE COMPANY ON OCT 10 CUT INTERNATIONAL PHONE RATES BY ABOUT 2 BUT TWO DOMESTIC RIVALS FOLLOWED WITH CUTS OF THEIR OWN APPLYING TO LOWER RATES ON OCT 18 THE SPOKESMAN SAID KDD CUT RATES ON OCT 10 AMID A CAMPAIGN BY THE GOVERNMENT TO PASS ON THE BENEFITS OF THE YEN'S RECENT APPRECIATION TO CONSUMERS IN ORDER TO SPUR CONSUMPTION THROUGH PRICE DECREASES THE COMPANY IS FACING STIFF COMPETITION FROM ITS TWO DOMESTIC RIVALS INTERNATIONAL TELECOM JAPAN INC AND INTERNATIONAL DIGITAL COMMUNICATIONS INC WHICH WERE BOTH LAUNCHED IN 1989 A KDD SPOKESMAN SAID THOSE COMPANIES' SHARE OF JAPAN'S INTERNATIONAL TELECOMMUNICATIONS SERVICE MARKET HAS GROWN TO OVER 30 9310220008 931022 CORRECTIONS & AMPLIFICATIONS LOTUS DEVELOPMENT CORP DOESN'T CHARGE USERS OF ITS AMI PRO SOFTWARE FOR TELEPHONE SUPPORT ALTHOUGH THE COMPANY IS CONSIDERING CHARGING FOR IT BASED ON ERRONEOUS INFORMATION FROM THE COMPANY THE PERSONAL TECHNOLOGY COLUMN OCT 14 STATED THAT SUCH A CHARGE EXISTS PRIMERICA CORP NAMED BARRY SLOANE HEAD OF NATIONAL SALES FOR MORTGAGEBACKED SECURITIES AT THE COMPANY'S SMITH BARNEY SHEARSON UNIT AN ITEM WEDNESDAY INCORRECTLY INDICATED THAT MR SLOANE WOULD HEAD NATIONAL SALES FOR THE ENTIRE UNIT A MAXIMUM OF 22500 US WORKERS WILL DIRECTLY LOSE JOBS AS A RESULT OF THE NORTH AMERICAN FREE TRADE AGREEMENT THE LABOR DEPARTMENT SAID WITH ABOUT HALF OF THOSE EXPECTED TO USE FEDERAL JOBTRAINING SERVICES THE AGENCY CLARIFIED COMMENTS MADE BY LABOR SECRETARY ROBERT REICH AN ARTICLE THURSDAY INCORRECTLY REPORTED THAT NO MORE THAN 11250 WORKERS WOULD LOSE THEIR JOBS BECAUSE OF NAFTA 9310220007 931022 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CHC HELICOPTER CORP AN OFFERING OF 75 MILLION OF SENIOR SUBORDINATED NOTES DUE 2003 PLUS WARRANTS FOR ABOUT 600000 CLASS A SHARES VIA JEFFERIES & CO FULCRUM TECHNOLOGIES INC AN INITIAL OFFERING OF 1750000 COMMON SHARES VIA PACIFIC GROWTH EQUITIES AND SOUNDVIEW FINANCIAL GROUP INC MACROMEDIA AN INITIAL OFFERING OF 2150000 COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP MONTGOMERY SECURITIES AND VOLPE WELTY & CO MICROCHIP TECHNOLOGY CORP AN OFFERING OF 14 MILLION COMMON SHARES VIA ALEX BROWN & SONS INC AND COWEN & CO SOUTHERN UNION CO A RIGHTS OFFERING OF 50 MILLION OF COMMON STOCK 9310220006 931022 PEPPERAND SALT I HAVE A STRONG INTUITION CARE TO JOIN ME IN A PRONE POSITION A MYSTERY TO ME WE NEVER KNOW WHEN FICKLE FATE MAY STRIKE TALK ABOUT RUSSIAN ROULETTE 9310220005 931022 FLUKE'S 2NDQUARTER ORDERS EVERETT WASH FLUKE CORP SAID THAT IT EXPECTS FISCAL SECONDQUARTER INTERNATIONAL ORDERS FOR ITS ELECTRONICTEST TOOLS TO TRAIL EXPECTATIONS TOTAL ORDERS FOR THE PERIOD ENDING OCT 29 ARE EXPECTED TO BE FLAT WITH THE FIRST QUARTER OR 86 MILLION THE COMPANY SAID 9310220004 931022 VIACOM NET SANK IN 3RD PERIOD GAIN A YEAR AGO CITED BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK VIACOM INC'S NET INCOME FOR THE THIRD QUARTER FELL 52 BUT EARNINGS FROM OPERATIONS ROSE 10 TO RECORD LEVELS THANKS TO A STRONG PERFORMANCE AT THE MTV NETWORKS INC UNIT FOR THE QUARTER VIACOM REPORTED NET OF 22 MILLION OR 18 CENTS A SHARE COMPARED WITH 45 MILLION OR 37 CENTS A SHARE IN THE COMPARABLE PERIOD A YEAR AGO VIACOM NOTED THAT THE THIRDQUARTER COMPARISON IS AFFECTED BY LAST YEAR'S SETTLEMENT OF ITS ANTITRUST SUIT AGAINST TIME WARNER INC IN THE THIRD QUARTER OF 1992 VIACOM REPORTED A 35 MILLION GAIN RELATED TO THE SETTLEMENT IN THE LATEST THIRD QUARTER VIACOM REPORTED AN 89 MILLION ONETIME LOSS ON THE COST OF CALLING CERTAIN OUTSTANDING NOTES REVENUE ROSE 8 TO 5081 MILLION FROM 4715 MILLION IN THE 1992 QUARTER EARNINGS FROM OPERATIONS ROSE TO 11015 MILLION FROM 10001 MILLION ED HATCH AN ANALYST AT UBS SECURITIES SAID THE RESULTS FROM OPERATIONS WERE SOMEWHAT BETTER THAN EXPECTED IN PART BECAUSE OF THE STRENGTH IN ADVERTISING SALES AND IN THE FEES CABLE OPERATORS PAY TO CARRY THE PROGRAMMING OF THE MTV NETWORKS GROUP AT MTV NETWORKS WHICH INCLUDES THE MTV AND VH1 CABLE MUSIC VIDEO NETWORKS AND THE NICKELODEON CHILDREN'S NETWORK REVENUE ROSE 27 AND EARNINGS FROM OPERATIONS INCREASED 44 EARNINGS FROM OPERATIONS AT THE SHOWTIME PAYCABLE NETWORKS FELL 13 TO 7 MILLION REFLECTING HIGHER MARKETING AND OTHER COSTS OVERALL OPERATING EARNINGS AT THE NETWORKS GROUP WHICH INCLUDES MTV AND SHOWTIME ROSE 36 TO 83 MILLION VIACOM SAID NEW CABLE RATE REGULATIONS HAD A NEGATIVE IMPACT ON ITS CABLE TELEVISION SYSTEMS UNIT EARNINGS FROM OPERATIONS DECREASED 12 TO 26 MILLION AND REVENUE WAS FLAT AT 104 MILLION AS EXPECTED VIACOM'S ENTERTAINMENT SEGMENT WAS HARD HIT BY SOFTNESS IN THE TELEVISIONSYNDICATION MARKET AND BY THE CONCLUSION OF THE FIRST CYCLE OF RERUN SALES OF THE COSBY SHOW EARNINGS FROM OPERATIONS PLUNGED 75 TO 3 MILLION 9310220003 931022 US TO TAKE OVER FIVE PENSION PLANS OF SHARON STEEL BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE PENSION BENEFIT GUARANTY CORP AGREED TO TAKE OVER SHARON STEEL CORP'S FIVE PENSION PLANS A FEDERAL BANKRUPTCY JUDGE IN PITTSBURGH RULED LAST MONTH THAT THE STEEL COMPANY COULDN'T EMERGE FROM BANKRUPTCYLAW PROCEEDINGS WITHOUT ITS PENSION PLANS BEING TERMINATED TO RELIEVE THE FIRM OF THE FINANCIAL RESPONSIBILITY OF THE PLANS THE PBGC SAID ITS GUARANTEE OF PENSION BENEFITS WOULD COVER ABOUT 206 MILLION OF THE 250 MILLION SHORTFALL IN SHARON STEEL'S FIVE FUNDS CURRENTLY THE PLANS HAVE 100 MILLION IN ASSETS AND MORE THAN 350 MILLION IN PENSION LIABILITIES THE PLANS COVER ABOUT 5000 RETIREES AND 1200 CURRENT EMPLOYEES WHO ARE ENTITLED TO RECEIVE BENEFITS WHEN THEY REACH RETIREMENT AGE THE PENSION AGENCY SAID IT ADDED THAT MOST RETIREES WOULD GET THE SAME BENEFITS THEY HAVE BEEN RECEIVING AND THAT OTHERS WOULD RECEIVE THE BENEFITS THEY EARNED THROUGH SUNDAY THE EFFECTIVE DATE OF THE PLANS' TERMINATION SUBJECT TO LEGAL LIMITS A SPOKESMAN FOR SHARON STEEL BASED IN FARRELL PA SAID THE PENSION AGENCY'S DECISION IS CONSISTENT WITH OUR REQUEST FOR TERMINATION AND WE'RE PLEASED THE PBGC ACTED IN AN EXPEDITIOUS MANNER THE COMPANY DECLARED SEVERAL FACILITIES PERMANENTLY CLOSED AS OF JULY 19 AND SOUGHT TERMINATION OF ITS PENSION PLANS SHARON STEEL HAD AGREED IN EARLY 1990 TO INJECT MORE MONEY INTO THE PLANS BEYOND ITS MINIMUM LEGAL REQUIREMENT THE COMPANY PAID 685 MILLION OF THAT COMMITMENT BEFORE IT DEFAULTED ON A REQUIRED CONTRIBUTION IN APRIL 1992 THE COST OF COVERING THE SHORTFALL IN SHARON STEEL'S PENSION PLANS WAS FACTORED INTO PBGC'S PREVIOUSLY REPORTED 27 BILLION DEFICIT BUT LABOR SECRETARY ROBERT REICH THE AGENCY'S CHAIRMAN SAID THAT THE CASE HIGHLIGHTS THE IMPORTANCE OF THE PBGC GUARANTEES AND THE NEED FOR LEGISLATIVE REFORM THE CLINTON ADMINISTRATION RECENTLY PROPOSED LEGISLATION THAT WOULD PUSH COMPANIES WITH UNDERFUNDED PLANS TO NARROW THE GAP FASTER THAN NOW REQUIRED BY LAW LATE LAST YEAR THE PENSION AGENCY LISTED SHARON STEEL EIGHTH ON ITS LIST OF THE TOP 50 COMPANIES WITH UNDERFUNDED PENSION PLANS AS OF DEC 31 1991 RANKED BY PERCENTAGE OF UNDERFUNDING WHEN COMPARING ASSETS WITH LIABILITIES SINCE THEN THE COMPANY'S FUNDING RATIO HAS DETERIORATED 9310220002 931022 FOREIGN EXCHANGE FLIGHT FROM MARK IS TRIGGERED BY CUTS IN GERMAN INTEREST RATES DOLLAR SPURTS BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE BUNDESBANK'S SURPRISE CUT IN INTEREST RATES SENT THE DOLLAR SHARPLY HIGHER LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16685 MARKS UP 18 FROM 16395 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10841 YEN STERLING WAS TRADING AT 14830 DOWN FROM 14947 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10827 YEN AND AT 16663 MARKS TRADERS SAID THE BUNDESBANK'S MOVE CAME AS A COMPLETE SHOCK TO THE MARKET A DISAPPOINTING REPORT ON GERMAN MONEY SUPPLY AND A NEGLIGIBLE TRIMMING OF GERMAN MONEYMARKET RATES ON WEDNESDAY HAD PERSUADED TRADERS THAT ANY EASING BY THE GERMAN CENTRAL BANK WASN'T LIKELY FOR WEEKS IF NOT MONTHS SO WHEN THE GERMAN CENTRAL BANK ANNOUNCED CUTS OF 05 IN ITS KEY DISCOUNT AND LOMBARD RATES TO 575 AND 675 RESPECTIVELY THE NEWS CAUSED A FLIGHT FROM THE MARK INTO THE DOLLAR AND OTHER EUROPEAN CURRENCIES IT DEFINITELY CAUGHT THE MARKET BY SURPRISE SAID JOHN NELSON DIRECTOR OF GLOBAL FOREIGN EXCHANGE AT BARCLAYS BANK IN NEW YORK IT LOOKS LIKE A SUBTLE CHANGE IN THE LONGTERM POLICIES THAT THE BUNDESBANK HAS BEEN CARRYING ON HE ADDED ANALYSTS NOTED THAT HANS TIETMEYER THE BUNDESBANK'S NEW PRESIDENT FOLLOWED UP THE RATE CUTS WITH SEVERAL COMMENTS AT A HASTILY ARRANGED NEWS CONFERENCE MR TIETMEYER EMPHASIZED THAT CONCERN AMONG THE BANK'S LEADERSHIP ABOUT THE HEALTH OF THE GERMAN ECONOMY WAS A KEY FACTOR LEADING TO THE DECISION AT THURSDAY'S MEETING TO MAKE THE CUTS SUCH A CONCERN ANALYSTS SAID SOMETHING OF A SHIFT FROM THE CENTRAL BANK'S SINGLEMINDED EMPHASIS ON FIGHTING INFLATION AND PROTECTING THE VALUE OF THE MARK AT ALL COSTS AND COULD INDICATE THAT FURTHER INTEREST RATES CUTS WERE POSSIBLE SOON MR TIETMEYER NOTED THAT EXPORTS WHICH WERE SUPPOSED TO LEAD GERMANY OUT OF ITS RECESSION REMAIN WEAK AND AREN'T RISING WHILE MANUFACTURING CAPACITY UTILIZATION FELL SLIGHTLY IN SEPTEMBER HE ADDED THAT WHILE THE GERMAN ECONOMY SEEMS TO HAVE STABILIZED THERE ISN'T ANY CLEAR SIGN FOR A RAPID RECOVERY IN OUR VIEW IT LOOKS LIKE THERE'S BEEN A SHIFT IN THEIR FOCUS TOWARD GROWTH AND AWAY FROM INFLATION SAID MICHAEL PERELSTEIN MANAGING DIRECTOR OF INTERNATIONAL INVESTMENT AT MACKAYSHIELDS FINANCIAL CORP IN NEW YORK HE ADDED THAT'S A WATERSHED IN GERMAN MONETARY POLICY I TEND TO THINK THIS IS A SEA CHANGE AGREED LARS PEDERSEN SENIOR INTERNATIONAL ECONOMIST AT CHEMICAL SECURITIES INC IN NEW YORK THIS IS A SIGNIFICANTLY EASIER ATTITUDE TOWARD MONETARY POLICY THAN WE'VE SEEN HE ADDED BOTH ANALYSTS EMPHASIZED THAT THE TIMING OF THE CUTS AFTER JUST THE SECOND OF THE BUNDESBANK'S BIWEEKLY COUNCIL MEETING HEADED BY MR TIETMEYER WAS AS SIGNIFICANT AS HIS COMMENTS IN SIGNALING A NEW WILLINGNESS TO EASE RATES AGGRESSIVELY MR TIETMEYER TOOK OVER AS BANK PRESIDENT FROM HELMUT SCHLESINGER OCT 1 HE COULD HAVE WAITED A COUPLE OF MEETINGS WHY DO IT NOW ASKED MR PEDERSEN IT INDICATES THAT THEY ARE GOING TO BE EASING MORE AGGRESSIVELY TRADERS SAID THOSE VIEWS HELPED THE DOLLAR SURGE AGAINST THE MARK THURSDAY BURSTING THROUGH TECHNICAL LEVELS TO REACH ITS HIGHEST POINT SINCE THE BEGINNING OF SEPTEMBER THEY ADDED THAT WITH MANY PLAYERS NOW PREDICTING THAT THE DOLLAR COULD BE HEADED TOWARD 175 MARKS IN THE NEXT FEW WEEKS THERE WAS RELATIVELY LITTLE PROFITTAKING SEEN ON THE DOLLAR'S CLIMB 9310220001 931022 ITALY'S DOMESTIC PRODUCT ROME ITALY'S GROSS DOMESTIC PRODUCT ROSE A REAL OR INFLATIONADJUSTED 08 IN THE SECOND QUARTER FROM THE FIRST QUARTER AND WAS DOWN 06 FROM THE SECOND QUARTER OF 1992 THE NATIONAL STATISTICS AGENCY ISTAT SAID 9310220167 930929 JAGUAR OWNERS LOVE COMPANY AND SHARING THEIR HORROR STORIES LATEMODEL JAGS LACK GLITCHES OF YORE BUT MISERY IS WHAT CAR'S CONNOISSEURS CRAVE BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL BEATRICE SMART WANTS TO LOVE HER RED 1990 JAGUAR XJ6 SEDAN IF ONLY THE AUTOMOBILE WOULD LET HER I THANK GOD EVERY TIME I GET INTO THE CAR SAYS MS SMART A GRAPHIC ARTIST IN SAN PEDRO CALIF THE INTERIOR HAS TRULY ELEGANT BURLED WALNUT LEATHER THE COLOR OF A SWEET ENGLISH BISCUIT AND THOSE FLOWING LINES SO SEDUCTIVE YET LIKE MANY ANOTHER JAGUAR OWNER SHE ALSO HAS REASON TO HATE HER CAR AND SHE GLORIES IN COMPLAINING THE BRAKES WENT DEAD LAST YEAR AND ALMOST CAUSED ME TO LURCH INTO ONCOMING TRAFFIC TWO LITTLE LIGHT BULBS UNDER THE HOOD REFUSE TO TURN OFF AND THEY DRAIN MY BATTERY A SUPPOSEDLY MINOR TUNEUP COST ME 1403 THE BILL WAS FIVE PAGES LONG I WAS DUMBFOUNDED AND SO LIKE MANY PEOPLE WITH THE MONEY TO BUY LUXURY CARS MS SMART WHO SPENT 40000 FOR HERS HAS THOUGHT ABOUT ALTERNATIVES TO THE LEGENDARY CANTANKEROUS BRITISH IMPORT SHE HAS CONSIDERED TRADING UP DOWN AND SIDEWAYS BUT NONE OF THEM MERCEDES LEXUS ROLLSROYCE HAVE JAGUAR'S ROMANCE AND RACING HERITAGE SHE SAYS SOME JAGUAR LOVERS SIMPLY WON'T BE DENIED THE PAIN JAGUAR CARS LTD ACQUIRED BY FORD MOTOR CO IN 1989 FOR 251 BILLION HAS BEEN ASSIDUOUSLY TRYING TO GET RID OF GLITCHES FOR ABOUT A DECADE WITH SUCCESS THAT STOPS SOMEWHAT SHORT OF COMPLETE THE MIXED RESULTS RAVE REVIEWS FROM THE AUTOMOTIVE PRESS AND CONSUMER TESTING GROUPS BUT REJECTION FROM THOSE JAGUAR LOYALISTS WHO SAY THE CAR WITH A BASE PRICE OF 51750 FOR THE '94S DOESN'T HAVE THE OLD MYSTIQUE WITHOUT THE MISTAKES SUCH FOLKS AREN'T SATISFIED WITH ANYTHING LESS THAN BEING MISERABLE SLIDE BEHIND THE WHEEL WITH ONE OF THE CAR WORLD'S WEIRDEST CULTS AFTER NEARLY SIX DECADES OF GEARS THAT WON'T SHIFT HEAD LIGHTS THAT DON'T LIGHT AND BRAKES THAT SOMETIMES BURST INTO FLAME THE JAGUAR HAS FANS WHO CAN'T GET ENOUGH OF THE HORROR STORIES WHICH ARE A VERY BIG PART OF THE LORE OF THE CAR MANY OF THE 47 JAGUAR CLUBS IN THE US NOW GIVE ANNUAL AWARDS SOME CALLED THE CAT BITE TO THOSE WHO TELL THESE TALES MOST ELOQUENTLY WE'RE MECHANICAL MASOCHISTS SAYS JULIE BLOOMQUIST A COMPUTER DATABASE DESIGNER WHO WON THE ST LOUIS JAGUAR OWNERS' CLUB SADSTORY TROPHY A BRONZED PISTON WITH A BIG CRACK IN IT IN 1991 SHE AND HER HUSBAND CLAIMED THE PRIZE FOR THE GUSHING PINK TRANSMISSION FLUID THAT COATED THE ROAD FOR HUNDREDS OF MILES AS THEY DROVE THEIR 1966 JAG SEDAN TO A CAR SHOW IN TULSA OKLA TO PUT OFF A 1500 REPAIR THEY BOUGHT TRANSMISSION FLUID AT EVERY WALMART EN ROUTE DALE NYBERG A BODYSHOP OWNER IN TULSA WHOSE 1971 ETYPE TWOSEATER IS FOREVER IN NEED OF CARBURETOR WORK ENTERED THE RELATIVELY LOWMAINTENANCE MODERN ERA OF JAGUAR WHEN HE BOUGHT A 1986 XJ6 SEDAN HE QUICKLY GOT RID OF IT HE SAYS NOT ENOUGH WENT WRONG TO KEEP ME INTERESTED SUCH RESPONSES WORRY MARK LINDER WHO IS PART OF JAGUAR'S ADVERTISING BRAIN TRUST AT OGILVY & MATHER HE SAYS JAGUAR STILL TARGETS RISKTAKERS AND THAT DEFINITELY INCLUDES REPEAT BUYERS SO EVEN IF THE CAR IS GETTING BETTER QUALITYWISE HE DOESN'T WANT IT TO SEEM UTTERLY PREDICTABLE SAYS MR LINDER THE JAG DRIVER IS CLIMBING INTO A STORY A JAGUAR IS ALL ABOUT SPIRIT A LEXUS IS CLINICALLY FLAWLESS BUT WHERE'S THE PASSION SO WHAT IF THEY ARE BUILDING A BETTER JAGUAR SINCE THE 1986 MODEL YEAR AS JAGUAR'S RATINGS FOR QUALITY AND DEALER SERVICE HAVE RISEN 30 ACCORDING TO JD POWER & ASSOCIATES WHOSE APPROVAL IS AMONG THE MOST SOUGHT AFTER IN THE AUTO INDUSTRY THE CAT'S US SALES HAVE SLUMPED 65 TO 8681 IN 1992 FOR THE '93 MODELS VOLUME IS UP 36 SO FAR THANKS TO AN AGGRESSIVE LEASING CAMPAIGN AND A NEW 30DAY MONEYBACK GUARANTEE WHAT HAPPENED WELL THERE WAS A RECESSION FOR ONE THING AND A LUXURY TAX BUT MANY OWNERS OF OLDER JAGS SAY THAT THE CAR'S STYLING GOT TOO BOXY AND TIRED IN THE LATE '80S OTHERS SAY THAT OVERENGINEERING HAS TAMED JAGUAR'S RAW POWER IN A TRADEOFF FOR DEPENDABILITY RICHARD RUSS WHO OWNS AND LOVES THREE JAGUARS FROM THE '60S AND '70S BOUGHT A 1988 XJ6 THAT HE SAYS WITH AN AIR OF DISAPPOINTMENT WAS THE LEAST TROUBLESOME JAGUAR I EVER OWNED HE SOLD IT A YEAR LATER THE RIDE WAS SMOOTH LIKE A BUICK SHOULD BE AND THE POWER STEERING WAS TOO HELPFUL GLUTTONS FOR PUNISHMENT PEOPLE OFTEN BUY JAGUAR AFTER JAGUAR MS SMART OF SAN PEDRO IS ON THAT SORT OF JAG SHE BOUGHT THE 1990 MODEL THAT HAS CAUSED HER SUCH HEADACHES JUST A YEAR AFTER HER WEEKEND CAR A 1961 JAGUAR XK150 WON THE FLYING FICKLE FINGER OF FATE AWARD FROM THE JAGUAR OWNERS CLUB OF LOS ANGELES SHE LOVES TO TELL OF HOW A WHEEL STARTED COMING APART WITH THAT CAR IN HIGH GEAR I PRAYED TO THE FREEWAY GODS TO LET ME COAST TO A STOP ON WEEKEND CARAVANS MILWAUKEE JAGUAR OWNERS LIKE TO GATHER AROUND STRANDED PARTICIPANTS AND TAKE SNAPSHOTS WE LOVE TO REMEMBER WHO SUFFERED SAYS KATHY NELL WHO WITH HER HUSBAND A REALESTATE DEVELOPER OWNS 10 JAGUARS SHE ADDS THIS IS A SPECIAL FORM OF INSANITY BUT ARE JAGUAR OWNERS TRULY DIFFERENT FROM PEOPLE WITH A PASSION FOR OTHER CARS PARTICULARLY OLD LUXURY MODELS YES THEY ARE IN A REALM OF AUTOMOTIVE AGONY ALL THEIR OWN INSISTS EDWARD KORELC JR A ST LOUIS MECHANIC WHO WORKS ON MANY FOREIGN MAKES HIS CONSCIENCE SOME TIMES COMPELS HIM TO TRY TO TALK PEOPLE OUT OF MAKING REPAIRS A JAGUAR OWNER WILL SPEND HIS LIFE SAVINGS ON SOMETHING THAT SOUNDS LIKE A CAN OF BOLTS BEING SHAKEN WHEN IT STARTS UP I HAVE SEEN PEOPLE PUT THREE TIMES THE VALUE OF THEIR JAG INTO REPAIRS BECAUSE THEY LOVE IT SO MUCH HUM OF A CHEVY ENGINE EVEN THOSE US JAGUAR OWNERS WHO REFER TO A SEDAN AS A SALOON IN THE BRITISH MANNER WILL STOOP TO PUTTING IN CHEVROLET ENGINES TO KEEP THEIR JAGUARS GOING DALLAS MECHANIC JOHN RADOVICH SPECIALIZES IN REPLACING EXOTICBUTBURNEDOUT JAG ENGINES WITH PLAIN CHEVY V8S HE SAYS HE HAS SWITCHED 2500 JAG ENGINES SOME ALMOST NEW FOR A TYPICAL CHARGE OF 6500 JAGUARS WERE CREATED IN 1935 BY WILLIAM LYONS A FORMER MOTORCYCLE SIDECAR DESIGNER WHO DID MORE DREAMING THAN PLANNING THE ROMANTIC MR LYONS YEARNED FOR A HIGHPERFORMANCE CAR WHOSE LUXURY WOULD APPROACH ROLLSROYCE WITH SPEED RIVALING A FERRARI AT LESS THAN HALF THE PRICE OF EITHER BUT HE WAS A BETTER STYLIST THAN AN ENGINEER AND HIS CARS WERE BUILT TO SPRINT UNTIL THEY DROPPED WHICH PROVED TO BE OFTEN THUS JAGUAR'S ONLY ASSEMBLY PLANT IN COVENTRY 110 MILES NORTH OF LONDON HAS BEEN AN OVERACHIEVING UNDERCAPITALIZED MECCA FOR AUTOMOTIVE ENGINEERS WHO WANTED TO LIVE THEIR FANTASIES HE MADE AN EARLY SALE TO CLARK GABLE AND SIGNED UP ROY ROGERS AS A DEALER MR LYONS DIED IN 1985 BUT NOT BEFORE BEING KNIGHTED STILL AND ALL HE WAS NOTORIOUS FOR SCRIMPING ON THE CAR'S INNARDS HE BY PASSED FIRSTRATE GERMAN AND JAPANESE ELECTRICAL PARTS IN FAVOR OF TINNY BRITISH VERSIONS BOUGHT SECONDHAND METALBEND ING EQUIPMENT AND STAYED WITH A CRAMPED PRODUCTION LINE THAT WENT WITHOUT OVERHAUL FROM THE LATE 1940S UNTIL 1985 SO THE SOLUTION FOR MANY JAGUAR OWNERS IS OBVIOUS LEARN TO LOVE THE CAR'S PROB LEMS AS THEY LOVE THE CAR THEY POLISH THEIR ANECDOTES AS IF THEY WERE MEDALS PHILIP TAXMAN A ST LOUIS STOCKBROKER ENJOYS TELLING HOW HIS 1975 XJ6 CAUGHT FIRE ON A SHORT SPIN IN THE COUNTRY HERE I AM RUNNING INTO THE WOODS THINKING IT WAS ABOUT TO EXPLODE AND THE POLICE DRIVE UP AND PULL THEIR GUNS MISTAKING ME FOR A FUGITIVE THREE FIRE ENGINES CAME ALL THIS MERELY SERVES MR TAXMAN'S VISION OF HIMSELF AS A RISKTAKING JAGUAR OWNER TURNS OUT THE FIRE WAS IN THE BRAKES HE SAYS THAT HAPPENS TO RACE CARS ALL THE TIME DAYS LIKE THAT MAKE LIFE WORTH LIVING SEE RELATED LETTERS LETTERS TO THE EDITOR THE JOY OF JAGUARS WSJ OCT 21 1993 9309290015 YY93 MM10 9310220027 930930 LEISURE & ARTS BOOKSHELF NEW LIFE FOR QUEEN VICTORIA'S FAVORITE PM BY JAMES M PERRY WHEN HENRY BULWER FIRST SPOTTED HIM HE WAS WEARING GREEN VELVET TROUSERS A CANARYCOLORED WAISTCOAT LOW SHOES WITH SILVER BUCKLES THERE WAS LACE AT HIS WRISTS AND HIS JETBLACK HAIR WAS DANGLING IN RINGLETS THIS EXTRAORDINARY APPARITION THIS LONDON DANDY WAS THE YOUNG BENJAMIN DISRAELI GRANDSON OF A JEW FROM ITALY WHO HAD COME TO ENGLAND TO SELL STRAW HATS IN AN OFFICIALLY ESTABLISHED CHRISTIAN SOCIETY THAT WAS COMFORTABLY AND ALMOST UNIVERSALLY ANTISEMITIC DISRAELI CLIMBED TO THE TOP OF THE GREASY POLE WINNING ELECTION TO THE HOUSE OF COMMONS ON HIS FIFTH TRY MOVING ON TO BECOME QUEEN VICTORIA'S FAVORITE PRIME MINISTER ON SLOW DAYS HE WROTE POLITICAL NOVELS WEIGHED DOWN WITH HONORS HE ENDED HIS LONG CAREER AS A PEER OF THE REALM IT'S A GRAND STORY AND STANLEY WEINTRAUB A PROFESSOR AT PENNSYLVANIA STATE UNIVERSITY AND AUTHOR OF AN EARLIER BIOGRAPHY OF VICTORIA CASTS INTRIGUING NEW LIGHT ON PARTS OF IT IN DISRAELI DUTTON 717 PAGES 30 DRAWING HEAVILY ON LETTERS AND PAPERS BEING ASSEMBLED BY THE DISRAELI PROJECT AT THE QUEEN'S UNIVERSITY KINGSTON ONTARIO MR WEINTRAUB IS ESPECIALLY SKILLFUL IN EXAMINING DISRAELI'S JEWISHNESS AND HOW IT AFFECTED HIS LIFE AND HIS CAREER DISRAELI'S FATHER ISAAC D'ISRAELI BENJAMIN DROPPED THE APOSTROPHE FOR SIMPLICITY WAS A SCHOLAR LIVING COMFORTABLY AMID HIS BOOKS I WAS BORN IN A LIBRARY HIS SON WOULD SAY MANY OF THOSE BOOKS WERE ABOUT JEWISH HISTORY CULTURE AND RELIGION BUT ISAAC D'ISRAELI WAS NOT AN OBSERVANT JEW IN ONE OF HIS BOOKS THE GENIUS OF JUDAISM HE CONTENDED THE JEWISH RELIGION WITH ITS DIETARY AND OTHER RITUAL PRACTICES WAS A RELIGIOUS FOSSIL HIS THINKING HAD BEEN PARTLY SHAPED BY THE VIEWS OF MOSES MENDELSSOHN THE COMPOSER'S GRANDFATHER A PHILOSOPHER WHO BELIEVED THAT ANY DOGMATIC RELIGION WAS TO BE AVOIDED SO IT IS HARDLY A SURPRISE WHEN DISRAELI APPEARS AT ST ANDREW'S CHURCH LONDON IN 1817 AT THE AGE OF 12 TO BE BAPTIZED THE FEW DROPS OF HOLY WATER WOULD IN TIME WORK THEIR MIRACLES NOTES MR WEINTRAUB IF YOUNG DISRAELI HADN'T BEEN BAPTIZED HE COULDN'T HAVE TAKEN A SEAT IN THE HOUSE OF COMMONS BECAUSE EVERY NEW MEMBER HAD TO TAKE AN OATH ON THE TRUE FAITH OF A CHRISTIAN YEAR AFTER YEAR SOCALLED JEW BILLS WERE INTRODUCED TO ELIMINATE THE OATH YEAR AFTER YEAR THEY WERE VOTED DOWN BY WEALTHY TROGLODYTE MEMBERS OF DISRAELI'S OWN CONSERVATIVE PARTY IT WASN'T UNTIL 1858 THAT THE BARS CAME DOWN DISRAELI MR WEINTRAUB MAKES CLEAR KNEW THAT MERE BAPTISM WOULD NEVER WASH AWAY HIS BACKGROUND AND THAT HE WOULD BE FORCED TO DEAL WITH BIGOTRY ALL HIS LIFE OLD CLO'S THEY YELLED AT HIM WHEN HE MADE HIS FIRST STUMP SPEECH IN AN EFFORT TO LINK HIM WITH ITINERANT JEWISH PEDDLERS DISRAELI NEVER RENOUNCED HIS JEWISH BACKGROUND UNLIKE OTHERS HE REFUSED TO CHANGE HIS NAME HE DEFENDED HIS HERITAGE HE BOASTED SOMETIMES INACCURATELY OF THE IMPORTANCE OF HIS OWN JEWISH FOREBEARS AND HE CREATED JEWISH HEROES IN A NUMBER OF HIS BOOKS IT WAS SOMETHING NEVER VERY FAR FROM HIS THOUGHTS DEEPLY IN DEBT BY THE TIME HE WAS 20HE FLOGGED SHARES IN CENTRAL AND SOUTH AMERICAN MINING VENTURES AND WAS NAIVE ENOUGH TO BUY SOME OF THEM HIMSELF AND LOST EVERYTHING HE HAD BORROWED HE BECAME DESPERATE TO WIN A SEAT IN PARLIAMENT ONLY THERE COULD HE BE INSULATED FROM THE THREAT OF DEBTORS' PRISON THOUGH HOUNDED BY BAILIFFS AND WRACKED BY BOUTS OF DEPRESSION SOME OF WHICH MR WEINTRAUB SUGGESTS MAY HAVE BEEN STAGED DISRAELI EMERGED AS SOMETHING OF A FIGURE IN LONDON'S SOCIAL SWIRL HE WAS ATTRACTED TO WOMEN AND THEY TO HIM HE BEDDED HIS OWN DOCTOR'S WIFE AND THEN TOOK UP WITH THE SCANDALOUS AND BOSOMY HENRIETTA SYKES MAKING THE GRAND TOUR OF EUROPE HE CONTRACTED VENERAL DISEASE IN CONSTANTINOPLE AND NEEDED A STIFF DOSE OF MERCURY TO FIX IT DISRAELI SAYS MR WEINTRAUB FOUND RAPTURE IN INDOOR SPORT HE EVENTUALLY MARRIED MARY ANNE WYNDHAM LEWIS THE WIDOW OF AN MP AND A WOMAN 12 YEARS HIS SENIOR HE MARRIED HER FOR MONEY BUT STAYED WITH HER OUT OF GENUINE AFFECTION IN THE WEAKEST AND THE MOST CONTROVERSIAL CHAPTER IN THE BOOK MR WEINTRAUB SUGGESTS THAT DISRAELI PRODUCED TWO ILLEGITIMATE CHILDREN DURING THE FINAL YEARS OF HIS MARRIAGE TO MARY ANNE WHEN HE WAS 60 AND MARY ANNE 72 MR WEINTRAUB SPECULATES DISRAELI WAS THE FATHER OF THE THIRD SURVIVING CHILD OF THE WILD AND SAVAGE DOLLY NEVILL WHO SCANDALIZED LONDON BY SMOKING CIGARS DRINKING WHISKY AND NURSING HER OWN BABIES THE CHILD'S NAME WAS RALPH AND HE GREW UP TO BE AN UNHOLY BORE THE OTHER CHILD WAS KATE DONOVAN WHO MAINTAINED TO FRIENDS THAT SHE WAS DISRAELI'S DAUGHTER BY AN UNKNOWN MOTHER WHOM SHE TOOK TO BE BOTH FRENCH AND OF THE JEWISH FAITH THE EVIDENCE FOR DISRAELI'S PATERNITY IS PLAUSIBLE WITHOUT BEING CONCLUSIVE MR WEINTRAUB CONCLUDES BARELY PLAUSIBLE FROM THE EVIDENCE THERE ARE MANY STRENGTHS IN THIS BOOK MR WEINTRAUB BREAKS NEW GROUND IN ANALYZING DISRAELI'S CHARACTER HE IS WONDERFULLY SUREFOOTED IN DESCRIBING SOCIAL LIFE IN LONDON AND IN THE GREAT COUNTRY ESTATES HE HAS READ AND UNDERSTOOD DISRAELI'S NOVELS AND HAS FOUND CLUES TO THE AUTHOR IN ALL OF THEM BUT THERE ARE WEAKNESSES TOO HE SEEMS LESS INTERESTED IN THE POLITICAL ISSUES THAT DISRAELI FACED DURING HIS PARLIAMENTARY CAREER AND WHEN HE DOES WRITE ABOUT THEM HE FAILS TO PUT THEM IN CONTEXT NOTABLY MISSING FROM THESE PAGES IS ANY SERIOUS DISCUSSION OF DISRAELI'S ROLE IN FOREIGN POLICY THOUGH THESE ARE THE YEARS WHEN THE SUN NEVER SET ON THE BRITISH EMPIRE AND PITY POOR WILLIAM GLADSTONE DISRAELI'S ARCHRIVAL HE GETS NO RESPECT AT ALL AS MR WEINTRAUB GLEEFULLY TAKES US ALONG ON GLADSTONE'S NOCTURNAL ROUNDS TO RESCUE LONDON'S STREETWALKING PROSTITUTES COMING HOME AS THE SUN RISES TO GIVE HIMSELF A THERAPEUTIC FLOGGING LUCKY FOR HIM YOU THINK THAT REPORTERS FOR THE THE MIAMI HERALD WEREN'T HIDING IN THE BUSHES MR PERRY COVERS NATIONAL POLITICS IN THE JOURNAL'S WASHINGTON BUREAU SEE RELATED LETTER LETTERS TO THE EDITOR THE OTHER WSJ OCT 21 1993 9309300131 YY93 MM10 9310210186 931021 WHO'S NEWS EON CORP EON CORP RESTON VA R MICHAEL SHERIDAN 42 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS INTERACTIVE TELEVISION SERVICE COMPANY HE SUCCEEDS DAVID A LEHMAN 60 WHO WILL RETIRE AFTER A SHORT TRANSITION PERIOD MR SHERIDAN WHO HAD BEEN AN EXECUTIVE VICE PRESIDENT JOINED EON IN DECEMBER 1992 FROM SUN MICROSYSTEMS INC 9310210185 931021 ECONOMY CLINTON INVESTMENT' AGENDA BLOSSOMS BUT SAVINGS SEEM HARDER TO CULTIVATE BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS MAKING SIGNIFICANT PROGRESS ON ITS PUBLIC INVESTMENT AGENDA BUT IT HAS YET TO SHOW THE BUDGET DISCIPLINE NEEDED TO SUSTAIN ITS SPENDING INITIATIVES IN THE FUTURE UNLIKE THE PRESIDENT'S FAILED ECONOMIC STIMULUS PACKAGE WHICH SUCCUMBED TO A REPUBLICAN FILIBUSTER LAST SPRING THE LONGERTERM INVESTMENT STRATEGY HAS WON SUPPORT FROM LAWMAKERS MOREOVER IT BETTER SUITS THE PRESIDENT'S SELFIMAGE AS A NEWGENERATION DEMOCRAT RETOOLING WASHINGTON WHILE HIS REQUESTS HAVE BEEN SCALED BACK IN MOST CASES MR CLINTON NOW COMMANDS A GOVERNMENT THAT REFLECTS HIS PRIORITIES FROM CHILDHOOD VACCINATION PROGRAMS TO THE RETRAINING OF DISLOCATED WORKERS HIGHWAY SPENDING AN EARLY CASUALTY IN THE STIMULUS FIGHT IS PROMISED A HEALTHY 15 OR 23 BILLION INCREASE UNDER THE 386 BILLION TRANSPORTATION BUDGET PENDING IN CONGRESS AND WHILE LAWMAKERS CUT MORE THAN 800 MILLION FROM MR CLINTON'S REQUEST FOR HEAD START THEY WILL PROVIDE 33 BILLION OR 20 MORE THAN WHAT WAS APPROPRIATED IN THE PAST FISCAL YEAR IMMUNIZATION FUNDING IS UP 54 TO 528 MILLION AND THE ONCESTRUGGLING RYAN WHITE PROGRAM TO HELP STATE AND LOCAL PUBLICHEALTH SYSTEMS COPE WITH THE AIDS CRISIS WILL GROW BY TWOTHIRDS TO 579 MILLION OVER THE COMING YEAR WITHIN THE COMMERCE DEPARTMENT CONGRESS IS POISED TO APPROVE SUBSTANTIAL INCREASES FOR RESEARCH AND TECHNICAL ASSISTANCE INTENDED TO IMPROVE US COMPETITIVENESS OVERSEAS AND ENERGYCONSERVATION RESEARCH AND SOLARPOWER PROGRAMS ARE ASSURED OF INCREASES IN THE RANGE OF 20 EACH THE PRESIDENT OWES A DEBT TO REP LOUIS STOKES D OHIO A NEW APPROPRIATIONS SUBCOMMITTEE CHAIRMAN WHO BOTH PROTECTED THE COSTLY SPACE PROGRAM AND SET ASIDE 370 MILLION FOR THE PRESIDENT'S NEW NATIONALSERVICE INITIATIVE ASSISTANCE FOR THE HOMELESS WILL GROW BY 26 TO 7227 MILLION AND THE REVAMPED HOME INVESTMENT PROGRAM WHICH PROVIDES FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS FOR HOUSING PROJECTS WILL GROW TO 127 BILLION A 27 INCREASE OVER THE PAST YEAR MR CLINTON HAS SUFFERED SOME SETBACKS HE GOT ONLY A QUARTER OF THE 420 MILLION HE SOUGHT FOR HIS GOALS 2000 EDUCATION AGENDA HIS EFFORTS TO ENCOURAGE HIGHSPEED RAIL TECHNOLOGIES WENT UNFUNDED AND NO MONEY HAS BEEN SET ASIDE FOR COMMUNITY DEVELOPMENT BANKS TO EXTEND FINANCIAL SERVICES TO LOWERINCOME URBAN AND RURAL AREAS BUT TAKEN AS A WHOLE THE PRESIDENT GOT ENOUGH OF HIS AGENDA TO CLAIM SUCCESS HIS CHALLENGE NOW IS TO PROVE THESE INVESTMENTS ARE EFFECTIVE AND TO FIND SAVINGS THAT WILL PERMIT THEM TO GROW IN THE FUTURE AS A CANDIDATE MR CLINTON'S CAMPAIGN REFLECTED A DEEP FAITH IN GOVERNMENT'S ABILITY TO RETRAIN WORKERS EFFECTIVELY HE WILL NOW HAVE MORE THAN 11 BILLION IN ASSISTANCE FOR DISLOCATED WORKERS TO PROVE HIS POINT NEARLY TWICE THE PRIOR FUNDING THE PRESIDENT'S INDUSTRIAL POLICY WILL BE TESTED BY HOW THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY THE HIGHTECH ARM OF THE COMMERCE DEPARTMENT PERFORMS WITH ITS BEEFEDUP BUDGET AND THE ENERGY DEPARTMENT'S NEW MULTIBILLIONDOLLAR ADVANCED NEUTRON SOURCE REACTOR WHOSE AIM IS TO PRODUCE RARE ISOTOPES SUCH AS THOSE FOR MEDICAL DIAGNOSIS MUST PROVE ITS WORTH TO WIN MORE THAN THE 17 MILLION LAWMAKERS RELUCTANTLY PROVIDED TO COMPLETE DESIGN WORK WHAT CONGRESS HAS GIVEN MR CLINTON IS STILL ONLY A START TOWARD HIS EXPANSIVE AGENDA BUT THE COMPETITION FOR FUNDS WILL BE MORE DIFFICULT UNDER THE FIVEYEAR SPENDING CAPS APPROVED AS PART OF THE DEFICITREDUCTION AGREEMENT THIS PAST SUMMER THIS YEAR THE APPROPRIATIONS COMMITTEE LEADERSHIP FOUND SOME LEEWAY BY USING OFFSETTING CUTS FROM DEFENSE BUT THIS FLEXIBILITY WILL BE DIMINISHED AS LAWMAKERS STRUGGLE TO LIVE WITHIN AN EFFECTIVE FREEZE ON APPROPRIATIONS ACCOUNTS AT A RANGE OF 538 BILLION TO 548 BILLION ANNUALLY WHITE HOUSE OFFICIALS SPEAK CHEERFULLY OF 108 BILLION IN FUTURE SAVINGS FROM VICE PRESIDENT GORE'S NATIONAL PERFORMANCE REVIEW BUT AN ANALYSIS BY THE HOUSE BUDGET COMMITTEE SHOWS THAT MANY OF THESE SAVINGS ALREADY HAVE BEEN COUNTED IN PRIOR CALCULATIONS AND THEY STILL FALL 19 BILLION SHORT OF WHAT IS NEEDED TO STAY UNDER THE CAPS THROUGH 1998 MOREOVER AS THE BILLS FROM US MILITARY MISSIONS OVERSEAS COME DUE IT WILL BE HARDER TO FIND SAVINGS FROM PENTAGON ACCOUNTS LAWMAKERS SUBSTANTIALLY CUT THE STATE DEPARTMENT'S REQUEST FOR US CONTRIBUTIONS TO UNITED NATIONS' PEACEKEEPING OPERATIONS BUT BY THEIR OWN RECKONING THE HOUSE AND SENATE APPROPRIATIONS COMMITTEES NOW ESTIMATE THAT THE MONEY PROVIDED IS ONLY ABOUT A THIRD OF WHAT FINALLY MAY BE ASSESSED BY THE UN THERE HAS BEEN GREATER AUSTERITY IN THE APPROPRIATIONS PROCESS THIS YEAR BUT THE ADMINISTRATION CAN TAKE LITTLE CREDIT FOR THE RESTRAINT THE TONE IN CONGRESS HAS BEEN SET MORE BY THE NEW HOUSE APPROPRIATIONS CHAIRMAN REP WILLIAM NATCHER THEY CALL ME THE CHEAP CHAIRMAN SAYS THE KENTUCKY DEMOCRAT WHO TAKES PRIDE IN HIS MODEST PORTRAIT AMONG THE OILS OF THE COMMITTEE CHAMBERS MOST OFTEN AS SEEN IN THE FIGHT OVER THE SUPERCONDUCTING SUPERCOLLIDER THIS WEEK THE WHITE HOUSE HAS BEEN ON THE OPPOSITE SIDE OF A COALITION OF TAXPAYER AND ENVIRONMENTAL GROUPS THAT HAVE TEAMED UP WITH FRESHMEN LAWMAKERS TO TARGET BIG SCIENCE EXPENDITURES AS IT STRUGGLES NOW WITH A NEW BUDGET THE ADMINISTRATION MAY RUE ITS FAILURE TO PICK MORE HIGHPROFILE BUDGETCUT TARGETS OF ITS OWN TO BUILD DISCIPLINE FOR THE FUTURE IT WANTS NEW MONEY FOR HIGH TECHNOLOGY IN THE COMMERCE DEPARTMENT FOR INSTANCE BUT ISN'T READY YET TO SURRENDER THE OLD ECONOMIC DEVELOPMENT ADMINISTRATION AND IN WHAT MAY PROVE A VAIN ATTEMPT TO SAVE THE SUPERCOLLIDER THE ADMINISTRATION HAS BEEN FORCED TO MAKE CONCESSIONS TO SOUTHERN AND WESTERN WATER INTERESTS WHO SOAKED UP HUNDREDS OF MILLIONS OF DOLLARS IN UNEXPENDED FUNDS FOR THEIR OWN INVESTMENT IN A 14 BILLION CORPS OF ENGINEERS CONSTRUCTION BUDGET 16 OVER MR CLINTON'S REQUEST 9310210184 931021 INTERNATIONAL VOLVO MAKES BID TO FULLY CONTROL PROCORDIA DIVISION BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM WITH OPPOSITION TO ITS PROPOSED MERGER WITH RENAULT SA OF FRANCE STILL SIMMERING AMONG SMALL SHAREHOLDERS AB VOLVO LAUNCHED A LONGAWAITED BID TO GAIN FULL CONTROL OF THE BRANDED CONSUMER PRODUCTS DIVISION OF AFFILIATE PROCORDIA AB THE OFFER VALUED AS HIGH AS 47 BILLION SWEDISH KRONOR 5931 MILLION STEMS FROM THE TANGLED PROCORDIA BREAKUP PLAN CRAFTED BY VOLVO AND THE SWEDISH GOVERNMENT EARLIER THIS YEAR UNDER THAT PLAN THE BRANDED CONSUMER PRODUCT OPERATIONS DUBBED BCP WILL BE SPUN OFF TO SHAREHOLDERS NEXT MONTH LEAVING PROCORDIA A STREAMLINED PHARMACEUTICAL AND BIOTECHNOLOGY SUPPLY GROUP VOLVO STOCK FELL ON THE NEWS AS ONE OF THE OPTIONS IN THE SPINOFF ALLOWS BCP SHAREHOLDERS TO EXCHANGE SIX BCP SHARES FOR ONE NEW VOLVO SHARE TRADERS SAID THAT WOULD DILUTE VOLVO SHARES VOLVO'S B SHARES CLOSED AT 413 KRONOR 5212 DOWN FROM 429 KRONOR IN TRADING IN STOCKHOLM IN THE US LATE NATIONAL OVERTHECOUNTER TRADING PUT VOLVO AT 52 DOWN 175 VOLVO AND THE GOVERNMENT ARE CURRENTLY PROCORDIA'S DOMINANT OWNERS WITH VOTING STAKES OF ABOUT 43 EACH UNDER NEXT MONTH'S SPINOFF VOLVO IS TO SWAP PART OF ITS PROCORDIA HOLDING FOR THE GOVERNMENT'S ENTIRE BCP HOLDING IN TURN THE GOVERNMENT WILL GAIN MAJORITY CONTROL OF THE SLIMMEDDOWN PROCORDIA BUT IT INTENDS TO SELL THAT STAKE AS SOON AS MARKET CONDITIONS ALLOW PROBABLY SOMETIME NEXT SPRING VOLVO WILL RETAIN 25 OF PROCORDIA AFTER THE SPINOFF AND HAS A RIGHT TO BOOST THE STAKE TO 35 AS PART OF THE AFFILIATE'S PRIVATIZATION NEXT YEAR SECURING FULL CONTROL OF BCP IS A KEY ELEMENT IN THE TRANSFORMATION OF VOLVO TO A HOLDING COMPANY ENVISIONED BY CHAIRMAN PEHR GYLLENHAMMAR IF THE MERGER WITH RENAULT IS APPROVED BY A SPECIAL SHAREHOLDERS MEETING NEXT MONTH VOLVO WOULD EMERGE WITH MAJOR MINORITY STAKE IN ONE OF THE WORLD'S BIGGEST AUTO GROUPS RENAULTVOLVO RVA THE AUTO CONCERN WOULD ALSO HOLD A MAJOR STAKE IN ONE OF EUROPE'S 10 BIGGEST PHARMACEUTICAL COMPANIES PROCORDIA AN ASSORTMENT OF SMALLER PREDOMINANTLY SCANDINAVIAN INDUSTRIAL HOLDINGS AND THE SPUNOFF BCP UNIT GENERATING SUFFICIENT CASH TO COVER SHAREHOLDERS' ANNUAL DIVIDENDS 9310210182 931021 WHAT'S NEWS WORLDWIDE CLINTON AND DOLE AVERTED A SHOWDOWN ON SENDING TROOPS ABROAD THE PRESIDENT REACHED AN AGREEMENT WITH THE SENATE GOP LEADER OVER RESOLUTIONS RESTRICTING CLINTON'S ABILITY TO DEPLOY US FORCES IN HAITI AND BOSNIA DOLE AGREED TO SOFTEN THE TWO MEASURES MAKING THEM NONBINDING RESOLUTIONS THAT REQUEST RATHER THAN DEMAND CONGRESSIONAL AUTHORIZATION BEFORE SENDING TROOPS THE SENATE APPROVED THE BOSNIA RESOLUTION BY A 991 MARGIN AND A SIMILAR VOTE ON THE VERSION CONCERNING HAITI IS EXPECTED TODAY US AND HAITIAN OFFICIALS ARE DISCUSSING IDEAS TO BROADEN HAITI'S GOVERNMENT PERHAPS BY INCLUDING OPPONENTS OF EXILED PRESIDENT ARISTIDE IN AN EFFORT TO RESOLVE THE POLITICAL STALEMATE THERE NATO SHOULD BROADEN ITS MEMBERSHIP AND SEEK CLOSER OPERATIONAL LINKS INCLUDING TRAINING EXERCISES WITH FORMER WARSAW PACT ARMIES ACCORDING TO A US PROPOSAL THAT WAS APPROVED BY CLINTON THIS WEEK DOCTORS AND HOSPITALS OUGHT TO HAVE ACCESS TO SPECIAL LOWINTEREST LOANS IF THEY WANT TO FORM HEALTH PLANS TO COMPETE WITH BIG INSURERS PRESIDENTIAL HEALTHPOLICY ADVISER MAGAZINER TOLD A BOSTON CONFERENCE WHITE HOUSE AIDES SAID THEY BELIEVE HIS PROPOSAL WAS MEANT TO APPLY ONLY TO UNDERSERVED AREAS CANCER RESEARCHERS SAID THEY INDUCED COMPLETE REMISSIONS OF A LYMPH CANCER IN 16 OF 19 PATIENTS TREATED WITH MONOCLONAL ANTIBODIES BEARING LETHAL WARHEADS OF RADIOACTIVE ATOMS A LOS ANGELES JURY ACQUITTED A DEFENDANT IN THE DENNY BEATING CASE OF THE REMAINING SERIOUS CHARGE HE FACED ATTEMPTED PREMEDITATED MURDER THE DEFENDANT DAMIAN WILLIAMS WAS CONVICTED ON MONDAY OF ONE FELONY AND FOUR MISDEMEANOR ASSAULT CHARGES HIS CODEFENDANT HENRY WATSON WAS RELEASED FROM JAIL YESTERDAY ATTORNEY GENERAL RENO TOLD LAWMAKERS THAT THE TELEVISION INDUSTRY SHOULD GET ANOTHER CHANCE TO CURB VIOLENT PROGRAMMING BEFORE CONGRESS STEPS IN AND IMPOSES RESTRICTIONS ON THE BROADCASTERS KEY DEMOCRATIC SENATORS QUESTIONED THE ADMINISTRATION'S COMMITMENT TO FIGHTING ILLEGAL DRUGS AS THE GOVERNMENT'S TOP DRUG POLICY OFFICIAL LEE BROWN PRESENTED A PLAN EMPHASIZING PREVENTION AND TREATMENT GERMANY'S CHRISTIAN DEMOCRATS AGREED TO MAKE CHANCELLOR HELMUT KOHL'S PROTEGE STEFFEN HEITMANN THEIR CANDIDATE FOR THE PRESIDENCY HEITMANN HAS ANGERED JEWISH GROUPS FOR COMMENTS INTERPRETED AS EXCUSING GERMANY'S NAZI PAST RUSSIA'S ECOLOGY MINISTER PROPOSED CANCELING PLANS TO DUMP MORE NUCLEAR WASTE AT SEA AFTER JAPAN AND OTHER NATIONS CONDEMNED SATURDAY'S DISPOSING OF LOWLEVEL RADIOACTIVE MATERIAL IN THE SEA OF JAPAN SOMALI GUNMEN FIRED GRENADES AT TWO US HELICOPTERS IN THE FIRST SERIOUS SHOOTING INCIDENT IN MOGADISHU IN 12 DAYS A UN MILITARY SPOKESMAN SAID THE GRENADES FAILED TO HIT THE HELICOPTERS WHICH HAD BEEN FLYING OVER STRONGHOLDS OF CLAN LEADER AIDID UN OFFICIALS STRESSED THAT AN INFORMAL CEASEFIRE WAS STILL IN EFFECT CLINTON ISSUED AN EXECUTIVE ORDER REQUIRING THAT PAPER BOUGHT BY US AGENCIES MEET STRICT RECYCLING STANDARDS HOWEVER AT THE URGING OF MAINE'S SEN MITCHELL THE WHITE HOUSE GRANTED WHAT AMOUNTS TO AN EXEMPTION FOR PAPER FROM A PULP MILL IN MAINE THE FIRST AID CONVOY IN MONTHS REACHED MORE THAN 100000 MUSLIMS IN THE BESIEGED TOWN OF TESANJ IN NORTHERN BOSNIA THE NINETRUCK CONVOY CARRYING FOOD AND MEDICINE WAS ALLOWED TO CROSS SERBHELD TERRITORY TO ENTER THE TOWN WHICH HAS BEEN UNDER SIEGE FOR FIVE MONTHS SERBIAN PRESIDENT MILOSEVIC DISSOLVED THE REPUBLIC'S PARLIAMENT IN THE MIDST OF A BITTER NOCONFIDENCE VOTE AND SCHEDULED NEW LEGISLATIVE ELECTIONS FOR THE MIDDLE OF DECEMBER HIS MOVE CONDEMNED BY OPPOSITION LEADERS APPARENTLY HEADED OFF A POSSIBLE LEGISLATIVE DEFEAT PALESTINIAN NEGOTIATORS CRITICIZED ISRAEL'S PLANNED SECURITY ARRANGEMENTS FOR PALESTINIAN SELFRULE IN THE GAZA STRIP AND THE WEST BANK TOWN OF JERICHO ISRAELI SOURCES SAID THE PLAN OUTLINED DURING DISCUSSIONS IN EGYPT WOULD RETAIN LARGE NUMBERS OF ISRAELI SOLDIERS IN GAZA TO PROTECT JEWISH SETTLEMENTS AND BORDER CROSSINGS 9310210181 931021 INTERNATIONAL SEMICONDUCTOR EXPORTS INCREASE SEOUL SOUTH KOREA SOUTH KOREA'S SEMICONDUCTOR EXPORTS ARE BOOMING AS A RESULT OF THE APPRECIATION OF THE KOREAN CURRENCY AGAINST MAJOR CURRENCIES AND ARE EXPECTED TO MARK A HISTORIC HIGH BY THE END OF THIS YEAR THE MINISTRY OF TRADE INDUSTRY AND ENERGY SAID ACCORDING TO THE MINISTRY THE NATION'S EXPORTS OF FABRICATED SEMICONDUCTORS EXCLUDING ASSEMBLED ONES TOTALED 29 BILLION IN THE FIRST EIGHT MONTHS OF THIS YEAR UP 60 FROM 18 BILLION A YEAR EARLIER 9310210180 931006 REVIEW & OUTLOOK EDITORIAL SAN FRANCISCO NEW' DEMOCRATS HIS AGENDA IS OUR AGENDA AFLCIO PRESIDENT LANE KIRKLAND DECLARED AS HE INTRODUCED BILL CLINTON TO LABOR'S CHEERING THRONGS IN SAN FRANCISCO ON MONDAY DID THE PRESIDENT CRINGE THE AFLCIO CONNECTION WOULDN'T SEEM MUCH OF AN ASSET THESE DAYS THE LABOR CONFEDERATION HAS LOST 633000 MEMBERS IN THE PAST TWO YEARS AND THINKS SALVATION LIES IN SPENDING 4 MILLION TO BLUDGEON THE PRESIDENT ON THE AIRWAVES ABOUT NAFTA SINCE THE LAST DEMOCRAT WAS ELECTED TO THE WHITE HOUSE THE LABOR MOVEMENT HAS SHRUNK BY SEVEN MILLION SOULS AND NOWADAYS ACCOUNTS FOR 10 OF THE PRIVATE SECTOR WORK FORCE REMEMBER THE MIGHTY UNITED MINE WORKERS DOES ANYBODY EVEN KNOW THERE'S A COAL STRIKE GOING ON NOW THE UMW HAS BECOME A GHETTO OF LOW PRODUCTIVITY IN ITS OWN INDUSTRY ACCOUNTING FOR 41 OF THE COAL MINERS BUT ONLY 28 OF THE COAL IN DETROIT'S TRIENNIAL RIGADOON THE UNSPOKEN QUESTION IS WHETHER THE UAW INTENDS TO TAKE GENERAL MOTORS DOWN WITH IT THE UNION INSISTS ON EXTRACTING A POUND OF FLESH FOR EACH ONE OF THE 50000 JOBS GM MUST SHED EVEN IF IT MEANS NO GM JOBS FOR THE NEXT GENERATION ONLY ON THE ANTICOMPETITIVE ISLANDS OF THE PUBLIC SECTOR DOES LABOR THRIVE HAVING PICKED UP FIVE MILLION NEW MEMBERS SINCE 1970 POLITICS ASIDE EXTINCTION IS USUALLY THE FATE OF CARTELS EVEN CARTELS AIMED AT HIGHER WAGES BUT OF COURSE LABOR STILL HAS FAT RESOURCES ON CALL UPWARD OF 100 MILLION IN A PRESIDENTIAL YEAR IT DISPENSES THIS CASH PRECISELY TO MAKE SURE POLITICIANS DON'T STAND ASIDE THIS MONEY MAKES THE DEMOCRATS DO STRANGE THINGS HALF THE PARTY AND MOST OF THE CONGRESSIONAL LEADERSHIP ARE MARCHING OFF SHOULDER TO SHOULDER WITH PAT BUCHANAN AND ROSS PEROT IN LABOR'S HYSTERICAL WAR AGAINST NAFTA THE FIRST DEMOCRATIC PRESIDENT IN 16 YEARS IS LEFT TO SALVAGE THE ECONOMY OF THE NEXT MILLENNIUM WITH THE HELP OF THE REPUBLICAN MINORITY MR CLINTON ALMOST CAN'T TURN AROUND WITHOUT FINDING LABOR'S ENDGAME SEEPING DESTRUCTIVELY THROUGH ANOTHER PART OF HIS ANTICIPATED LEGACY THE RUBE GOLDBERGISM THAT THREATENS TO SMOTHER HIS HEALTH CARE PLAN CAN BE TRACED TO LABOR'S DOING THE UNIONS WOULDN'T GO ALONG UNLESS HE PROMISED TO GUARANTEE THEIR INFLATED BENEFITS AND PASS THE BILL ALONG TO TAXPAYERS AND SMALL BUSINESS WHAT WAS CONCEIVED IN JACKSON HOLE AS A MARKETORIENTED APPROACH HAS BEEN BORN AS A BUREAUCRATIC MONSTROSITY THAT ONLY AFSCME COULD LOVE AS TO MR CLINTON'S REINVENTING GOVERNMENT PROJECT THE PUBLIC SECTOR UNIONS FROWN ON A SERIOUS WHACK AT THE FEDERAL BUREAUCRACY SO AL GORE TALKS ABOUT TRIMMING MIDDLE MANAGEMENT MEANWHILE CONGRESSIONAL DEMOCRATS ARE GUTTING THE HATCH ACT TO PUT THEMSELVES IN LINE FOR LOBBYING AND CAMPAIGN FUNDS MR CLINTON HARDLY MENTIONS SCHOOL REFORM ANYMORE ONCE THE VERY QUINTESSENCE OF THE NEW DEMOCRATIC AGENDA AS NURTURED IN THE NATION'S GUBERNATORIAL LABORATORIES IF THE PRESIDENT TALKS ABOUT EDUCATION NOW IT'S ONLY TO BLOW A KISS TO THE TEACHERS' LOBBY AT LAST YEAR'S DEMOCRATIC CONVENTION TEACHERS REPRESENTED 40 OF THE DELEGATES NEEDED FOR NOMINATION POOR MR CLINTON HE SQUEAKED INTO THE WHITE HOUSE WITH LABOR'S MONEY AND VOTES UNLESS HE BREAKS FREE OF THEIR LEADEN AGENDA HE MAY SINK ALONG WITH THEM SEE RELATED LETTER LETTERS TO THE EDITOR AN UNFAIR DIG AT UMW WORKERS WSJ OCT 21 1993 9310060072 YY93 MM10 9310210179 931021 TREASURY PLANS TO RAISE 134 BILLION WITH SALES WASHINGTON THE TREASURY PLANS TO RAISE A COMBINED 134 BILLION IN FRESH CASH NEXT WEEK WITH THE SALE OF A RECORD 165 BILLION TWOYEAR NOTES TUESDAY AND 11 BILLION OF FIVEYEAR NOTES WEDNESDAY THE BALANCE OF THE PROCEEDS WILL BE USED TO REDEEM 142 BILLION IN MATURING TWOYEAR AND FIVEYEAR NOTES THE TWOYEAR NOTES WILL BE DATED NOV 1 AND WILL MATURE OCT 31 1995 THE FIVEYEAR NOTES WILL BE DATED NOV 1 AND WILL MATURE OCT THE CUSIP NUMBER FOR THE TWOYEAR NOTES IS 912827M58 THE CUSIP NUMBER FOR THE FIVEYEAR NOTES IS 912827M66 NONCOMPETITIVE TENDERS FOR THE TWOYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 5000 MUST BE RECEIVED BY NOON EDT TUESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT NONCOMPETITIVE TENDERS FOR THE FIVEYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 1000 MUST BE RECEIVED BY NOON EDT WEDNESDAY COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT 9310210178 931021 ENTERPRISE IRS CHANGES ITS APPROACH TOWARD SMALL BUSINESSES AGENCY HOPES NEW AUDIT GUIDELINES ENCOURAGE MORE HONEST RETURNS BY EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERNAL REVENUE SERVICE IS RETHINKING ITS TOUGHGUY APPROACH IN AN ATTEMPT TO COAX GREATER TAX COMPLIANCE FROM SMALLBUSINESS OWNERS THE NEW STRATEGY SEEKS TO OPEN THE LINES OF COMMUNICATION WITH BUSINESSES SUCH AS TAXICAB OPERATIONS AND GASOLINE STATIONS THAT HISTORICALLY HAVE UNDERPAID THEIR TAXES BECAUSE THEY DEAL IN SO MUCH CASH IN INSTITUTING THE POLICY THE IRS HAS HELD MEETINGS WITH BUSINESS OWNERS IN DOZENS OF INDUSTRIES DRAFTED EASYTOUNDERSTAND GUIDELINES FOR TAX AUDITS AND TRAINED AGENTS ON THE PECULIARITIES OF VARIOUS LINES OF BUSINESS BY SHOWING THAT IT IS INCREASING ITS EFFORTS TO SPOT IRREGULARITIES AND THAT IT IS STREAMLINING ITS AUDITING PROCEDURES THE IRS HOPES TO PRESSURE BUSINESSES TO FILE MORE ACCURATE RETURNS IT IS ALSO STARTING A PROGRAM TO IMPROVE THE REPORTING OF TIPS IN THE RESTAURANT AND HOTEL INDUSTRIES THE NEW AUDITING APPROACH CALLED THE MARKET SEGMENT SPECIALIZATION PROGRAM SEEKS TO COMBAT WHAT THE IRS SEES AS WIDESPREAD TAX EVASION BY SMALL BUSINESSES THE IRS ESTIMATES THAT 29 OF LAST YEAR'S 1137 BILLION TAX GAP THE AMOUNT OF TAX DUE THAT WASN'T VOLUNTARILY REPORTED WAS OWED BY SOLE PROPRIETORSHIPS BUSINESSES 100OWNED BY ONE PERSON WE DON'T HAVE THE PERSONNEL TO AUDIT EVERYBODY SAYS JAMES FEEHAN JR DIRECTOR OF THE IRS'S OFFICE OF QUALITY AND SUPPORT WE'VE GOT TO DO SOMETHING TO IMPROVE COMPLIANCE THIS IS VERY SIGNIFICANT ADDS CORNELIUS COLEMAN A FORMER IRS REGIONAL COMMISSIONER NOW WORKING IN NEW YORK WITH ACCOUNTING FIRM COOPERS & LYBRAND OF THE MARKETSEGMENT STRATEGY IT'S A SEA CHANGE IN TAX ADMINISTRATION IT IS ALSO AN ATTEMPT TO GIVE IRS AGENTS SPECIALIZED KNOWLEDGE OF SPECIFIC INDUSTRIES BEFORE THEY UNDERTAKE AUDITS ALTHOUGH THE IRS HAS A LONG FAMILIARITY WITH THAND OUTS OF MOST BUSINESS SECTORS AGENTS AUDITING RETURNS HAVE FREQUENTLY BEEN CRITICIZED FOR LACKING AN UNDERSTANDING OF THE SPECIAL CHARACTERISTICS OF COMPANIES THEY ARE EXAMINING WHEN I WENT OUT ON AN EXAM I WAS LEARNING A BUSINESS FOR THE FIRST TIME RECALLS ROBERT LEBAUBE A FORMER ASSISTANT IRS COMMISSIONER NOW WITH COOPERS & LYBRAND IN WASHINGTON BUSINESS OWNERS HAD TO TRAIN ME IT WASN'T EFFECTIVE UNDER THE NEW PROGRAM THE IRS HAS MET WITH TRADE GROUPS AND BUSINESS OWNERS IN A SPECIFIC INDUSTRY IN ONE LOCALE THEN WRITTEN AUDIT GUIDELINES FOR ITS AGENTS IN SIMPLE NONTECHNICAL LANGUAGE IT HAS PUBLISHED SEVEN SETS OF GUIDELINES SO FAR AND SAYS IT IS TARGETING ROUGHLY TWO DOZEN OTHER INDUSTRIES INCLUDING AUTO DEALERSHIPS AND PIZZA RESTAURANTS ULTIMATELY IT PLANS TO EXPAND THE LIST BY 50 MORE WHILE THE BOOKLETS ARE MEANT TO BE USED BY ITS AGENTS THE IRS IS ALSO MAKING THEM AVAILABLE TO BUSINESS OWNERS THROUGH ITS HEADQUARTERS IN WASHINGTON DC IN HOPES OF ALERTING THEM TO THE KIND OF INFORMATION INCLUDING DOLLAR AMOUNTS THAT IT EXPECTS TO SEE ON RETURNS AUDIT GUIDELINES HAVE ALWAYS BEEN PUBLIC INFORMATION BUT THE REVENUECODE LANGUAGE IS SO TECHNICAL THAT FEW OWNERS BOTHER TO STUDY THEM THE 22PAGE AUDIT GUIDELINE FOR THE TAXI INDUSTRY ILLUSTRATES THE NEW DIRECTION THE IRS IS TAKING IT IS THE RESULT OF DISCUSSIONS WITH TAXI DRIVERS AND TAXI COMPANIES IN LOS ANGELES THE BOOKLET SHOWS HOW THE IRS ESTIMATES INCOME WHEN A CAB DRIVER DOESN'T HAVE ACCURATE RECORDS IT LISTS A FORMULA FOR COMPUTING TAXI GROSS RECEIPTS AND SENDS A CLEAR MESSAGE TO DRIVERS TO BE MORE CAREFUL ABOUT TRACKING THEIR TIPS LIKE MANY OTHER CASHBASIS TAXPAYERS IN A CASHBASIS BUSINESS CAB DRIVERS TEND TO KEEP DETAILED RECORDS OF EXPENSES AND VIRTUALLY NONE TO VERIFY INCOME IT SAYS THE BOOKLET ALSO HIGHLIGHTS THE IRS'S OWN EXAMINATION STRATEGY COMPARE THE TAXI OWNER'S LEASE INCOME TO THE AMOUNT OF INCOME REPORTED TO THE CITY THE WORKMAN'S COMPENSATION PAID AS WELL AS THE ESTIMATED LEASE INCOME FROM THE NUMBER OF WEEKS THE TAXI IS LEASED IN A RELATED DEVELOPMENT THE IRS SAYS OWNERS OF 60 PHOENIXAREA RESTAURANTS AND HOTELS HAVE AGREED TO REPORT THE AMOUNT OF TIPS RECEIVED BY EMPLOYEES AT A MUTUALLY AGREED UPON LEVEL IN FUTURE TAX RETURNS IN RETURN FOR THE PLEDGE WHICH REQUIRES CONCURRENCE OF 75 OF A CONCERN'S TIPPED WORKERS THE IRS AGREES NOT TO CHALLENGE THE TIP RATE IN FUTURE AUDITS THE PROGRAM STARTED IN ARIZONA LAST SUMMER HAS BEEN PUT IN PLACE THROUGHOUT THE SOUTHWEST AND IS BEING ADOPTED NATIONWIDE IT APPLIES TO CONCERNS WITH 10 OR MORE FULLTIME TIPPED WORKERS UNDERREPORTING OF TIP INCOME IS COMMON IN THE FOODSERVICE INDUSTRY IRS OFFICIALS SAY THOMAS SMITH CHIEF OF THE IRS EXAMINATION DIVISION BASED IN PHOENIX SAYS THE TIP RATE REPORTED BY ALL ARIZONA ESTABLISHMENTS FILING RETURNS IN 1991 AVERAGED 76 OF GROSS RECEIPTS HE SAYS THE IRS FIGURES THE ACTUAL AMOUNT OF TIP INCOME RECEIVED BY EMPLOYEES WAS CLOSER TO 13 NATIONALLY THE IRS ESTIMATES THAT BETWEEN 7 BILLION AND 10 BILLION OF TIPS WERE UNREPORTED IN 1990 IT ADDS THAT ONLY 11 OF EATING AND DRINKING ESTABLISHMENTS EVEN FILED TAX FORM 8027 REFLECTING TIP INCOME MR SMITH SAYS HE STARTED THE PHOENIX PROGRAM LAST JULY AFTER DETERMINING THAT MOST RESTAURANTS AND HOTELS THAT WERE CAUGHT IN TAX AUDITS UNDERREPORTING TIP INCOME PAID THEIR PENALTIES AND WENT RIGHT BACK TO UNDERREPORTING WE'RE ATTEMPTING TO GET THEM BUSINESS OWNERS TO REPORT IT CORRECTLY THE FIRST TIME SO WE DON'T HAVE TO DO TIMECONSUMING AUDITS THAT HISTORICALLY DON'T HAVE MUCH EFFECT MR SMITH SAYS DANIEL JACOB OWNER OF EL PARADOR A TUCSON ARIZ RESTAURANT SAYS HE RELUCTANTLY SIGNED UP IT'S EASIER TO COMPLY THAN TO GAMBLE ON GETTING AUDITED HE SAYS BUT HE CALLS THE POLICY A LEGAL FORM OF EXTORTION IN MY OPINION ADDING IF MY EMPLOYEES LIE IN REPORTING THEIR TIP INCOME THEN I'M RESPONSIBLE THE INTERNAL REVENUE SERVICE HAS RELEASED SIMPLIFIED AUDIT GUIDES FOR THESE FIELDS LAW TRUCKING TAXICAB OPERATION GASOLINE RETAILING MORTUARY BEDANDBREAKFAST AND AIR CHARTER THE IRS HAS SELECTED THESE FIELDS AMONG OTHERS FOR FUTURE AUDIT GUIDES AUTO RETAILING CHECKCASHING COMMERCIAL FISHING ENTERTAINMENT COAL MINING GARMENT CONTRACTING GARMENT MANUFACTURING GRAIN GROWING GROCERY RETAILING HEALTH CARE INSURANCE BROKERAGE COINOPERATED LAUNDRY MOBILE CATERING PIZZA RESTAURANT CONSTRUCTION DOORTODOOR SELLING AND TELEMARKETING 9310210177 931021 US FILTER CORP ISSUES DEBT PALM DESERT CALIF US FILTER CORP SAID IT COMPLETED THE SALE OF 60 MILLION OF 5 CONVERTIBLE SUBORDINATED DEBENTURES DUE OCT 15 2000 VIA ALEX BROWN & SONS INC PROCEEDS WILL BE USED TO FUND PROJECTS IN MEXICO AND THE US PAY DEBT AND FOR GENERAL CORPORATE PURPOSES 9310210176 931004 REVIEW & OUTLOOK EDITORIAL BATTLE ROYAL JELLY THE POLITICS OF THE HEALTHFOOD STORE ARE AS DIZZYING AS THE PRODUCTS ON ITS SHELVES IF YOU DON'T OFTEN VISIT THIS KIND OF MARKET OR KEEP UP WITH THE ALTERNATIVE PRESS YOU MIGHT NOT REALIZE WHAT A BATTLE IS GOING ON BETWEEN HEALTH FADDISTS AND THEIR USUAL BUREAUCRATIC BUDDIES HENRY WAXMAN AND DAVID KESSLER HAVE BEEN STIRRING THE CAULDRON THE POWERFUL HEALTH SUBCOMMITTEE CHAIRMAN IN THE HOUSE AND THE COMMISSIONER OF THE FOOD AND DRUG ADMINISTRATION WANT TO GET A GRIP ON WHAT'S SOLD AS DIETARY SUPPLEMENTS MR WAXMAN'S 1990 NUTRITION LABELING AND EDUCATION ACT UNLEASHED THE FDA BUT STIRRED THE IRE OF SOME OF HIS USUAL SUPPORTERS RESTRICTING PESTICIDES OR PRESCRIPTION DRUGS IS EASY BUT PUTTING SIMILAR LIMITS ON NATURAL PRODUCTS IS A CHORE HEALTH FOOD SUPPORTERS HAVE BEEN IN AN UPROAR EXCITED BY THE OCCASIONAL FDA RAID ON SOME ALLEGED MALEFACTOR IN THE MANUFACTURINGTODISTRIBUTION CHAIN FOR THESE PRODUCTS ALL SORTS OF RUMORS KEEP THE FRENZY BUILDING A RECENT COMMENT PERIOD ON PROPOSED LABELING REGULATIONS DREW 40000 LETTERS PROTEST RALLIES ARE HELD AND MR WAXMAN GETS VERBALLY ASSAULTED AT CONSTITUENT MEETINGS ON THE WEST SIDE OF LOS ANGELES MANY AMERICANS JUST DON'T WANT TO COOPERATE WITH THEIR HEALTH CZARS THEY PATRONIZE TO THE TUNE OF 4 BILLION ANNUALLY AND RISING THE VARIOUS PRODUCTS PROMOTED IN THESE STORES THE VITAMIN AND MINERAL COMPONENT PERHAPS 80 OF THE TRADE DOESN'T NORMALLY EXCITE THE INTEREST OF THE FEDS IT'S THE REST EVERYTHING FROM SHARK CARTILAGE TO EXOTIC HERBS AND THE DISEASES THEY ARE SAID TO CHECK THAT TURNS THE REGULATORS PURPLE MOST OF THE CUSTOMERS MEANWHILE SEEM SATISFIED DR KESSLER THINKS THEY OFTEN ARE JUST DESPERATE AND SUBJECTING THEMSELVES TO GRAVE RISK AFTER ALL EVEN THE MOST INNOCUOUS ELEMENTS IN NATURE CAN IN SUFFICIENT DOSAGE OR COMBINATION BECOME TOXIC THE FDA WOULD LIKE TO REQUIRE MARKETERS OF THESE WARES TO SHOW SIGNIFICANT SCIENTIFIC AGREEMENT BEFORE CLAIMING CURATIVE POWERS ANYONE FAMILIAR WITH THAT AGENCY'S ROLE IN THE INTRODUCTION OF PHARMACEUTICALS AND MEDICAL DEVICES KNOWS WHY THIS HAS THE INDUSTRY ALARMED SMALL MANUFACTURERS SAY THAT SUCH A BURDEN OF PROOF WOULD BE UNAFFORDABLE TO THEM FURTHER ENTHUSIASTS SUSPECT THAT INTRUSION WILL START WITH THE LABELS AND GO ON TO CONTENTS INCLUDING VITAMINS A JULY 29 HEARING BEFORE MR WAXMAN'S SUBCOMMITTEE WAS SOME INDICATION OF THE BIZARRE DIVISIONS ON THIS ISSUE THERE WERE SEN ORRIN HATCH THE QUIRKY UTAH CONSERVATIVE AND BILL RICHARDSON THE EVENQUIRKIER LIBERAL CONGRESSMAN FROM SANTA FE NM TAKING ON THE FDA EACH HAS CONSTITUENTS WITH INTERESTS IN THESE ALTERNATIVE REMEDIES AS DO OTHER REPRESENTATIVES WHO JOINED IN THAT SEN HATCH IS GREATLY RESPONSIBLE FOR DR KESSLER BEING AT FDA IS A FURTHER TWIST ON THE OTHER SIDE STANDING UP FOR THE PROTOCOLS OF ESTABLISHED MEDICINE WERE DR KESSLER AND HIS NADERITE ALLIES AND REP JOHN DINGELL THE SCOURGE OF MANY A SCIENTIST ALSO SOME OF THE VERY PHYSICIANS WHO ARE ALWAYS BATTLING THE SCARES STARTED BY CONSUMERIST QUACKS REP WAXMAN IS UNDERSTANDABLY TRYING TO APPEAR AN HONEST BROKER THESE DAYS BUT HIS BENT FOR BETTER SAFE THAN SORRY REGULATION IS EVER APPARENT THE LOBBY FOR DIETARY SUPPLEMENTS IS A COMBINATION OF NEW AGE LEFTIES AND RIGHTWING INDIVIDUALISTS WHO JUST DON'T TRUST THE MEDICALGOVERNMENTAL COMPLEX IN THE BACKGROUND ARE TENS OF MILLIONS OF OTHER AMERICANS WHO REGULARLY FIND SOMETHING HELPFUL AT A HEALTHFOOD STORE AND MIGHT WELL BE IRKED NOT TO GET IT OR MORE LIKELY BE TOLD WHAT IT MIGHT DO TO THEM THE REGULATORS SAY THEY WOULD YANK THE CONTENTS ONLY OUT OF ACUTE SAFETY CONCERN FROM THIS ECCENTRIC MILIEU HAS COME FOLIC ACID WHICH HAS PROVEN USEFUL IN PREVENTING BIRTH DEFECTS THAT BREAKTHROUGH HAD TO OVERCOME OFFICIAL RESISTANCE ON THE OTHER HAND 38 DEATHS HAVE BEEN BLAMED ON USE OF THE AMINO ACID LTRYPTOPHAN BEFORE IT WAS ULTIMATELY PULLED FROM THE SHELVES SUPPLEMENT SUPPORTERS BLAME ADULTERATED BATCHES MESSRS HATCH AND RICHARDSON ARE TRYING TO PASS LEGISLATION LOWERING THE LABELING BURDEN OF PROOF TO A MODICUM OF SCIENTIFIC SUPPORT INSTEAD OF WIDESPREAD AGREEMENT MEANWHILE THE FDA WHICH CONGRESS HELD OFF WITH A MORATORIUM AFTER THE 1990 LAW GOT PEOPLE EXCITED IS EXPECTED TO PRODUCE ITS OWN FINAL LABEL REGULATIONS BY YEAR END AND SAFETY STANDARDS AFTER THAT DR KESSLER WANTS THE POWER TO FORBID HEALTH CLAIMS ON LABELS UNTIL HE CLEARS THEM EITHER COMPROMISE OR CONFLICT ON THE CAPITOL FLOOR IS IN THE OFFING OUR BIAS FAVORS LETTING PEOPLE MAKE THEIR OWN CHOICES BUT OBVIOUSLY THERE'S A CONCERN ABOUT FRAUD HERE MAYBE EVEN THE LETHAL VARIETY WE SUPPOSE IT'S TOO MUCH TO HOPE THAT THE CONGRESS AND THE FDA COULD COME UP WITH A STANDARD FOR INFORMED CONSENT THAT ALLOWS FOR EXPERIMENTATION AND FOLLY IN THE MEANTIME NEARLY EVERYONE INVOLVED IN THIS IS BEING DISTRACTED FROM THE LARGER CONCERNS OF MEDICINE AND IN WASHINGTON THAT MAY NOT BE ENTIRELY A BAD THING SEE RELATED LETTER LETTERS TO THE EDITOR WHAT THE FDA DOESN'T WANT KNOWN WSJ OCT 21 1993 9310040085 YY93 MM10 9310210175 931021 TECHNOLOGY & HEALTH JOHNSON & JOHNSON'S PROFIT GREW 97 BRISTOLMYERS'S ROSE 32 IN 3RD PERIOD BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL TWO BIG DRUG COMPANIES WITH BROAD EXPOSURE TO INTERNATIONAL MARKETS WERE HIT HARD BY UNFAVORABLE FOREIGNEXCHANGE RATES IN THE THIRD QUARTER BUT STILL MANAGED TO REPORT PROFIT GAINS JOHNSON & JOHNSON WHOSE EUROPEAN SALES DECLINED 14 BECAUSE OF ADVERSE FOREIGNEXCHANGE TRANSLATIONS REPORTED A 97 INCREASE IN EARNINGS FOR THE QUARTER BRISTOLMYERS SQUIBB CO POSTED A SALES DECLINE OF 29 BECAUSE OF EXCHANGE RATES BUT ITS EARNINGS INCREASED 32 BOTH COMPANIES' EARNINGS WERE IN LINE WITH WALL STREET'S EXPECTATIONS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY JOHNSON & JOHNSON'S SHARES ROSE 75 CENTS TO 42125 AND BRISTOLMYERS SHARES JUMPED 1 TO 59125 FOR THE QUARTER JOHNSON & JOHNSON EARNED 454 MILLION OR 70 CENTS A SHARE UP FROM 414 MILLION OR 63 CENTS A SHARE A YEAR EARLIER FOR THE NINE MONTHS JOHNSON & JOHNSON'S EARNINGS DOUBLED TO 145 BILLION OR 222 A SHARE FROM 723 MILLION OR 109 A SHARE A YEAR EARLIER WHEN THE COMPANY TOOK A CHARGE FOR ACCOUNTING CHANGES THE NEW BRUNSWICK NJ HEALTHCARE COMPANY'S SALES INCHED UP 07 IN THE QUARTER TO 351 BILLION FROM 348 BILLION A YEAR EARLIER NINEMONTH SALES ROSE 35 TO 1061 BILLION FROM 1025 BILLION ABOUT HALF OF JOHNSON & JOHNSON'S SALES ARE OUTSIDE THE US MOST INTERNATIONAL MARKETS POSTED SALES GAINS BUT SALES IN EUROPE DECLINED SHARPLY DOMESTIC SALES INCREASED 52 THE COMPANY SAID ITS ENDOSCOPY BUSINESS IS GROWING RAPIDLY NOW HOLDING ABOUT 34 OF THE MARKET UP FROM 25 AT THE END OF 1992 THE COMPANY IS STILL LOSING MONEY IN THE AREA WHICH INCLUDES SPECIALIZED DIAGNOSTIC AND SURGICAL INSTRUMENTS A J&J SPOKESMAN SAID BUT THE LOSSES ARE RELATED TO ITS INVESTMENT IN BUILDING THE BUSINESS AND AREN'T BECAUSE OF DISCOUNTING ARVIND DESAI AN ANALYST AT MEHTA & ISALY IN NEW YORK PREDICTED J&J'S ENDOSCOPY BUSINESS WOULD BE PROFITABLE NEXT YEAR CONSUMERPRODUCTS SALES DECREASED 19 DURING THE QUARTER SLOWED IN THE US BY A SLUGGISH RETAIL ENVIRONMENT AND COMPETITION FROM PRIVATELABEL PRODUCTS THE COMPANY SAID J&J REDUCED THE PRICE BY 20 FOR MONISTAT AN ANTIFUNGAL TO TREAT VAGINAL YEAST INFECTIONS BUT DOESN'T INTEND TO REDUCE PRICES OF OTHER OVERTHECOUNTER PRODUCTS THE COMPANY SPOKESMAN SAID BRISTOLMYERS'S EARNINGS IN THE QUARTER ROSE TO 608 MILLION OR 118 A SHARE FROM 5892 MILLION OR 114 A SHARE IN THE YEAREARLIER PERIOD WHICH INCLUDED THE RESULTS OF BUSINESSES THAT HAVE SINCE BEEN SOLD FOR THE NINE MONTHS EARNINGS ROSE 24 TO 17 BILLION OR 330 A SHARE FROM 138 BILLION OR 267 A SHARE A YEAR EARLIER WHEN EARNINGS WERE REDUCED BY A CHARGE FOR AN ACCOUNTING CHANGE SALES IN THE QUARTER DECLINED TO 286 BILLION FROM 295 BILLION NINEMONTH SALES ROSE 11 TO 842 BILLION FROM 833 BILLION ABOUT 42 OF THE COMPANY'S SALES COME FROM OVERSEAS PHARMACEUTICAL SALES DECLINED 4 A DROP THAT MR DESAI ATTRIBUTED IN PART TO LOWER SALES OF THE HEART DRUG CAPOTEN COMPETITION CONTINUES TO ERODE CAPOTEN SALES HE SAID AND BRISTOLMYERS HASN'T BEEN ABLE TO MAKE UP FOR THE LOSS WITH NEW PRODUCTS BRISTOLMYERS ALSO WAS HIT BY A 3 DECLINE IN SALES IN ITS CONSUMERPRODUCTS BUSINESS BECAUSE OF COMPETITION 9310210174 931021 INTERNATIONAL BRITISH RETAIL SALES RISE LONDON BRITISH RETAILERS SOLD MORE THAN EXPECTED LAST MONTH DESPITE STEEP INCREASES IN MANY PRICES AND FEARS THAT CONSUMERS ARE WORRIED BY THE THREAT OF HIGHER TAXES RETAIL SALES ROSE 05 IN SEPTEMBER AND WERE UP 35 FROM A YEAR EARLIER FIGURES FROM THE CENTRAL STATISTICAL OFFICE SHOWED ECONOMISTS SAID THE NEWS CONFOUNDS RECENT SUGGESTIONS THAT THE ECONOMIC RECOVERY IS FALTERING 9310210173 931021 WHO'S NEWS CAREMARK INTERNATIONAL INC CAREMARK INTERNATIONAL INC NORTHBROOK ILL NANCY BRINKER FOUNDER OF THE SUSAN G KOMEN BREAST CANCER FOUNDATION WAS ELECTED A DIRECTOR OF THIS ALTERNATESITE HEALTH CARE PROVIDER INCREASING BOARD MEMBERSHIP TO 13 9310210172 931021 SPARTA ACCORD WITH MEDLINE HAYWARD CALIF SPARTA SURGICAL CORP REACHED AN AGREEMENT TO PROVIDE AT LEAST 575000 OF WOUND DRESSINGS TO MEDLINE INDUSTRIES OVER THE NEXT YEAR MEDLINE WILL DISTRIBUTE THE PRODUCTS SEPARATELY NEGOTIATIONS ARE UNDER WAY BETWEEN THE TWO COMPANIES TO ALLOW MEDLINE'S 500PERSON SALES FORCE TO REPRESENT ADDITIONAL SPARTA PRODUCTS TO ITS CUSTOMERS MEDLINE MAKES AND DISTRIBUTES HEALTHCARE PRODUCTS 9310210171 931021 NORANDA UNIT SIGNS CHINA PACT ROUYNNORANDA QUEBEC NORANDA COPPER SMELTING & REFINING SAID IT AGREED TO EXPORT ITS COPPER SMELTING TECHNOLOGY TO CHINA NATIONAL NONFERROUS METALS IMPORT & EXPORT CORP'S SHENYANG SMELTER IN NORTHERN CHINA THE NORANDA INC UNIT SAID ITS HORNE SMELTER WILL HANDLE ENGINEERING ON THE SMELTING PROCESS AND WILL PROVIDE SOME SPECIALIZED EQUIPMENT IT SAID CNIEC WILL HANDLE DETAILED ENGINEERING AND ANCILLARY EQUIPMENT MANPOWER TRAINING AND STARTUP ASSISTANCE IS ALSO COVERED BY THE PACT THE COMPANY SAID IT EXPECTS STARTUP OF THE CONTINUOUS SMELTING PROCESS AT THE SHENYANG OPERATION IN EARLY 1996 IT SAID THE PLANT WILL HAVE AN ANNUAL TREATMENT CAPACITY OF 350000 METRIC TONS 9310210170 931021 FINANCING BUSINESS KERRMCGEE CORP KERRMCGEE CORP OKLAHOMA CITY SAID THAT ALMOST ALL THE HOLDERS OF ITS 7 1/4 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2012 CHOSE TO RECEIVE COMMON STOCK INSTEAD OF CASH THE ENERGY AND CHEMICAL COMPANY WHICH LAST MONTH ANNOUNCED THAT IT WOULD REDEEM ITS 150 MILLION PRINCIPAL AMOUNT OF THE ISSUE SAID 1492 MILLION WILL BE CONVERTED INTO COMMON STOCK AT 4530 A SHARE FOLLOWING THE CONVERSION KERRMCGEE WILL HAVE AN ADDITIONAL 33 MILLION SHARES OUTSTANDING AN INCREASE OF 7 9310210169 931021 DIVIDEND NEWS FREEPORTMCMORAN OIL & GAS ROYALTY TRUST FREEPORTMCMORAN OIL & GAS ROYALTY TRUST HOUSTON SAID IT WON'T MAKE A CASH DISTRIBUTION IN OCTOBER BECAUSE OF THE COSTS ASSOCIATED WITH THE DRILLING OF AN EXPLORATORY WELL THE TRUST ALSO DIDN'T MAKE A DISTRIBUTION IN SEPTEMBER BUT PAID OUT 4346 CENTS A UNIT IN AUGUST FREEPORTMCMORAN SAID THAT FOR OCTOBER ITS CLASS A CAPITAL COSTS EXCEEDED GROSS PROCEEDS DUE PRIMARILY TO COSTS INCURRED IN THE DRILLING OF AN EXPLORATORY WELL ON WEST DELTA BLOCK 34 IN THE GULF OF MEXICO 9310210168 931021 INTERNATIONAL SAMSUNG VOWS TO CUT STAKE IN KIA TO DISPEL TAKEOVER SUSPICIONS SEOUL SOUTH KOREA SAMSUNG GROUP IS TRYING TO DISPEL SUSPICIONS THAT IT IS AIMING TO TAKE CONTROL OF KIA MOTORS CORP A SPOKESMAN SAID SAMSUNG WOULD REDUCE ITS 96 STAKE IN KIA MOTORS A HOLDING IT HAS BEEN BUILDING UP SINCE JUNE WE WILL IMPLEMENT MEASURES ACCORDING TO THE SITUATION THE SPOKESMAN SAID BUT HE DIDN'T SAY WHEN OR BY HOW MUCH THE GROUP WOULD REDUCE THE STAKE SUCH LACK OF DETAIL HAS LED SOME ANALYSTS TO BELIEVE THAT SAMSUNG WANTS ONLY TO COUNTER KIA'S PUBLICRELATIONS CAMPAIGN PORTRAYING THE HOLDING AS UNETHICAL I DON'T THINK THIS ISSUE IS DEAD SAID DON LEE AN ANALYST AT BARCLAYS DE ZOETE WEDD SECURITIES LTD IN SEOUL SAMSUNG'S STATEMENTS WERE PRETTY VAGUE SAMSUNG LIFE INSURANCE CO WHICH HOLDS MOST OF THE STAKE HAS SAID ITS INTEREST IN KOREA'S NO 2 AUTO MAKER IS PASSIVE BUT KIA HAS BLASTED THE STAKE AS A SPRINGBOARD FOR AN EVENTUAL HOSTILE TAKEOVER IT WOULD BE SOUTH KOREA'S FIRST HOSTILE RAID SAMSUNG ONE OF THE RICHEST AND MOST POWERFUL OF SOUTH KOREA'S CONGLOMERATES OR CHAEBOLS HAS LONG PLANNED TO ENTER THE AUTO INDUSTRY AND HOOKING UP WITH AN EXISTING MANUFACTURER WOULD BE MORE COSTEFFECTIVE THAN STARTING FROM SCRATCH PEOPLE CLOSE TO BOTH GROUPS SAID KIA MOTORS REJECTED A MERGER PROPOSAL FROM SAMSUNG SEVERAL MONTHS AGO AND THAT SIMILAR SAMSUNG PROPOSALS SUMITTED TO AB VOLVO OF SWEDEN AND JAPAN'S HONDA MOTOR CO AND NISSAN MOTOR CO HAVE ALSO BEEN TURNED DOWN ANALYSTS VALUE SAMSUNG'S STAKE IN KIA MOTORS AT 33 MILLION AFTER SAMSUNG'S STATEMENT KIA SHARES DROPPED 800 WON TO 18600 WON 2298 KIA MOTORS HAS PLEADED WITH SECURITIES OFFICIALS TO BLOCK A POTENTIAL SAMSUNG RAID BY LOWERING THE 10 CAP ON THE STAKE AN INVESTOR CAN ACQUIRE IN A COMPANY THROUGH THE OPEN MARKET 9310210167 931021 DIVIDEND NEWS FROZEN FOOD EXPRESS INDUSTRIES INC FROZEN FOOD EXPRESS INDUSTRIES INC ANNOUNCED A 4FOR3 STOCK SPLIT TO BE PAID NOV 10 TO STOCK OF RECORD OCT 25 THE PAYOUT WILL INCREASE THE NUMBER OF SHARES OUTSTANDING TO 125 MILLION FROM 94 MILLION AT THE DALLAS CARRIER 9310210166 931021 INTERNATIONAL DEUTSCHE AEROSPACE SAYS WORK FORCE CUTS TO TOTAL 20 BY 1996 MUNICH GERMANY DEUTSCHE AEROSPACE AG ANNOUNCED MASSIVE NEW LAYOFFS BRINGING TO 16000 JOBS ABOUT 20 OF ITS WORK FORCE THE TOTAL NUMBER OF JOBS IT WILL CUT BY THE END OF 1996 EUROPE'S LARGEST AEROSPACE COMPANY A UNIT OF DAIMLERBENZ AG HOPES TO SAVE 15 BILLION MARKS 9135 MILLION A YEAR FROM THE MOVE AN AMOUNT IT PLANS TO PUT DIRECTLY INTO NEW INVESTMENTS ALTOGETHER THE NEW JOB CUTS PLANNED FOR THE YEARS 1994 THROUGH 1996 WILL AMOUNT TO 10300 POSITIONS AND LEAD TO THE CLOSING OF SIX OF THE COMPANY'S 53 GERMAN JOB SITES THIS YEAR THE GERMAN COMPANY KNOWN AS DASA ALREADY HAS CUT 5700 JOBS FROM ITS TOTAL WORK FORCE OF 80000 WITH THE WORLD'S AVIATION INDUSTRY IN A TAILSPIN DEUTSCHE AEROSPACE CHIEF EXECUTIVE JUERGEN SCHREMPP SAID WE CAN NO LONGER LIVE FROM HOPE ALONE MR SCHREMPP ALSO CALLED ON POLITICIANS TO COME TO THE AID OF AN INDUSTRY WHICH IS OF VITAL IMPORTANCE TO THE FUTURE OF GERMANY IN PARTICULAR MR SCHREMPP CALLED ON THE GERMAN GOVERNMENT TO SUPPORT THE ADOPTION BY THE GENERAL AGREEMENT ON TARIFFS AND TRADE OF NEW RULES ON SUBSIDIES FOR AIRCRAFT MAKERS AND HE URGED EUROPEAN GOVERNMENT TO STEP UP THE LEVEL OF INDIRECT SUBSIDIES STATE AIDS MADE IN THE FORM OF RESEARCH GRANTS ALL WE WANT IS TO GET THE SAME SUBSIDIES AS OUR COMPETITORS FROM THE US AND JAPAN HE SAID LAST YEAR ACE PLUNGED INTO THE RED WITH A NET LOSS OF 341 MILLION MARKS FOLLOWING A PROFIT OF 50 MILLION MARKS IN 1991 MR SCHREMPP REITERATED THAT IT MAY BE 1995 UNTIL THE INDUSTRY ENJOYS A TURNAROUND 9310210165 931021 POLITICS & POLICY SPURRED BY THE BELLTCI DEAL CONGRESS MOVES TOWARD ENDING CABLE TVPHONE BARRIERS BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON REP EDWARD MARKEY OF MASSACHUSETTS THINKS BELL ATLANTIC CORP'S MEGADEAL TO BUY TELECOMMUNICATIONS INC LOOKS BAD FOR CONSUMERS AND COMPETITION REP RICK BOUCHER OF VIRGINIA THINKS IT'S PROCONSUMER AND VERY PROCOMPETITIVE BUT BOTH LAWMAKERS AGREE ON ONE THING THE PROPOSED ACQUISITION INCREASES THE URGENCY FOR CONGRESS TO BREAK DOWN BARRIERS AND LET SUCH CABLETV COMPANIES AS TCI AND TELEPHONE COMPANIES AS BELL ATLANTIC ENTER EACH OTHER'S BUSINESSES REP MARKEY AND REP BOUCHER BOTH DEMOCRATS ARE CLOSE TO PROPOSING LEGISLATION TO DO JUST THAT THE BELL ATLANTICTCI MARRIAGE AND THE MERGING TECHNOLOGIES IT SYMBOLIZES ARE PROMPTING MANY LAWMAKERS TO TAKE A FRESH LOOK AT TELECOMMUNICATIONS REGULATION OPPONENTS OF THE DEAL WANT TO MAKE SURE OTHER COMPANIES CAN COMPETE WITH THE NEW MULTIMEDIA BELL ATLANTIC PROPONENTS OF THE DEAL SAY IT SHOWS HOW FAR REGULATIONS HAVE FALLEN BEHIND REALITY THE MARKETPLACE IS CHANGING UNDER OUR FEET COMPLETELY AND WE'RE GOING TO HAVE TO DO SOME QUICKSTEPPING TO KEEP UP WITH IT SAYS DEMOCRATIC REP WJ TAUZIN OF LOUISIANA A MEMBER OF THE HOUSE TELECOMMUNICATIONS SUBCOMMITTEE WHICH REP MARKEY HEADS INDEED BARRIERS HAVE ALREADY BEEN FALLING THIS YEAR TELEPHONE COMPANIES STARTED BUYING CABLE COMPANIES OUTSIDE THEIR REGION ONE PHONE COMPANY U S WEST INC AGREED TO MAKE A 25 BILLION INVESTMENT IN TIME WARNER INC THE NATION'S SECONDLARGEST CABLE COMPANY IN AUGUST A FEDERAL JUDGE IN ALEXANDRIA VA STRUCK DOWN A 1984 PROVISION AND RULED THAT BELL ATLANTIC COULD PROVIDE CABLE PROGRAMMING IN ITS OWN SERVICE AREA THAT CASE WHICH MAY EVENTUALLY GO TO THE SUPREME COURT HAS PUT PRESSURE ON CONGRESS TO ENACT ITS OWN LAW AND KEEP SOME CONTROL OVER THE GROUND RULES FOR EXAMPLE UNDER A BILL WORKING ITS WAY THROUGH THE SENATE A TELEPHONE COMPANY COULD GET INTO CABLE TELEVISION BUT WOULD HAVE TO DO SO THROUGH A SEPARATE SUBSIDIARY THAT WOULD MAKE IT HARDER FOR A PHONE COMPANY TO BANKROLL VIDEO SERVICES WITH HIGH TELEPHONE RATES AT THE SAME TIME THE SENATE BILL AND THE LEGISLATION BEING DRAFTED BY REPS MARKEY AND BOUCHER WOULD PREVENT STATES FROM GIVING TELEPHONE COMPANIES A MONOPOLY ON LOCAL TELEPHONE SERVICE CONGRESS IS TAKING THE INITIATIVE LARGELY BECAUSE THE WHITE HOUSE HAS LEFT A BIG POLICY VOID ON TELECOMMUNICATIONS ISSUES VICE PRESIDENT GORE HAS TOUTED THE BROAD GOAL OF BUILDING COMPETITIVE INFORMATION SUPERHIGHWAYS TO BRING NEW VOICE DATA AND VIDEO SERVICES TO AS MANY HOMES AS POSSIBLE BUT ADMINISTRATION OFFICIALS HAVE JUST STARTED MEETING TO DISCUSS HOW TO GET THERE WITH NO SPECIFIC PLAN OF THEIR OWN THEY'RE EXPECTED TO TESTIFY NEXT MONTH IN FAVOR OF THE SENATE BILL WHICH IS SPONSORED BY DEMOCRATIC SEN DANIEL INOUYE OF HAWAII AND GOP SEN JOHN DANFORTH OF MISSOURI THE ADMINISTRATION AT THIS POINT HAS NO MAJOR PROBLEMS WITH THE BILL AN ADMINISTRATION OFFICIAL SAYS BUT BIG LOBBYING BATTLES LOOM OVER THE DETAILS CABLE COMPANIES SAY THEY'LL HAVE TROUBLE GETTING FINANCING TO BUILD TELEPHONE SYSTEMS SO THEY WANT A GRACE PERIOD AS LONG AS 10 YEARS BEFORE FULL COMPETITION BEGINS THAT'S RIDICULOUS SAYS WARD WHITE A LOBBYIST FOR THE BELL COMPANIES FOR THEIR PART BELL COMPANIES HAVE DEMANDED THAT THEY BE GIVEN THE RIGHT TO SELL LONGDISTANCE SERVICES IF THEY NO LONGER HAVE A MONOPOLY ON LOCAL SERVICE BUT OPPONENTS SAY BELL ATLANTIC'S BID FOR TCI SHOWS REGIONAL TELEPHONE COMPANIES DON'T NEED LONGDISTANCE TO BE HEALTHY ANOTHER BIG QUESTION IS WHETHER TELEPHONE COMPANIES SHOULD BE ABLE TO BUY OUT THE LOCAL CABLE COMPANY RATHER THAN STARTING A COMPETING SERVICE RECOGNIZING REGULATORY CONCERNS ABOUT KEEPING TWO SERVICES TO EACH HOME THE BIG TELEPHONE AND CABLE COMPANIES HAVE STOPPED PUSHING HARD FOR THE RIGHT TO BUY A LOCAL COMPETITORS AND LAST WEEK TCI SAID IT WOULD SHED CABLE SYSTEMS THAT OVERLAP WITH BELL ATLANTIC'S PHONE SYSTEMS BUT SMALL CABLE OPERATORS STILL WANT CONGRESS TO LET CABLE COMPANIES AND TELEPHONE COMPANIES BUY EACH OTHER OR FORM JOINT VENTURES IN SMALL MARKETS SOME OPERATORS HAVE EVEN STARTED TALKING WITH GROUPS REPRESENTING SMALL TELEPHONE COMPANIES IN AN EFFORT TO TRY A JOINT LOBBYING PUSH IF THE BELL ATLANTICTCI DEAL GOES AHEAD AND THE POWERS IN WASHINGTON SLAM THE DOOR THE REST OF US WILL BE STUCK WITH AN OUTRIGHT PROHIBITION SAYS DAVID KINLEY PRESIDENT OF SUN COUNTRY CABLE IN PLEASANTON CALIF AND CHAIRMAN OF THE NEW SPLINTER GROUP OF SMALL CABLE COMPANIES THERE IS STILL A CHANCE CONGRESS WILL INSTEAD SLAM THE DOOR ON TELECOMMUNICATIONS DEREGULATION SEN ERNEST HOLLINGS WON'T SAY WHERE HE STANDS ON THE DANFORTHINOUYE BILL WHICH AS CHAIRMAN OF THE COMMERCE COMMITTEE HE COULD BLOCK DURING RECENT SENATE HEARINGS SEN HOLLINGS DEFENDED LOCAL MONOPOLIES AND DECLARED WE KNOW WHAT HAS HAPPENED WITH ALL THIS DEREGULATION POINTING TO THE AIRLINE INDUSTRY'S WOES BUT SOME LOBBYISTS SAY THE SOUTH CAROLINA DEMOCRAT HAS TAKEN A POSITIVE INTEREST IN THE DEREGULATION BILL IN LIGHT OF THE BELL ATLANTICTCI DEAL BOTH REP MARKEY AND DEMOCRATIC SEN HOWARD METZENBAUM OF OHIO A STRONG OPPONENT OF THE BELL ATLANTIC DEAL ARE TALKING ABOUT THE POSSIBLE NEED FOR RULES LIMITING HOW MUCH PROGRAMMING TELEPHONE SUBSCRIBERS AND CABLE SUBSCRIBERS A SINGLE COMPANY CAN CONTROL SEN METZENBAUM IS CHAIRMAN OF THE SENATE ANTITRUST SUBCOMMITTEE BUT SEN METZENBAUM'S STAFF ALSO LISTS THE DANFORTHINOUYE BILL AS ONE WAY TO PROMOTE COMPETITION WITH THE NEW BELL ATLANTIC SEN METZENBAUM RECENTLY HIRED GENE KIMMELMAN A CONSUMER LOBBYIST WHO HAS SUPPORTED THE GENERAL OUTLINE OF THE BILL AND REP MARKEY AN ARCHITECT OF LAST YEAR'S BILL REGULATING CABLE RATES WAS WON OVER THIS YEAR TO THE IDEA OF ELIMINATING SOME REGULATORY BARRIERS THE CHANGE CAME PARTLY THROUGH A SERIES OF CONVERSATIONS BETWEEN REP MARKEY AND JAMES QUELLO INTERIM CHAIRMAN OF THE FEDERAL COMMUNICATIONS COMMISSION MR QUELLO HAD BECOME CONVINCED THAT THE CABLETELEPHONE WALLS WERE CRUMBLING AFTER SOUTHWESTERN BELL CORP ACQUIRED A CABLETV SYSTEM IN SUBURBAN WASHINGTON THIS YEAR IT WAS TIME TO LET EVERYONE IN HE SAYS REP BOUCHER WHO HAD PROPOSED A BILL TO LET THE TELEPHONE COMPANIES INTO THE CABLE BUSINESS SAYS HE STARTED SERIOUS DISCUSSIONS WITH REP MARKEY LAST MONTH TO EXPAND HIS BILL TO ALSO STRIKE DOWN STATE BARRIERS AGAINST LOCAL TELEPHONE COMPETITION WE ARE CLOSING THE GAP VERY RAPIDLY REP BOUCHER SAYS ADDING THAT HE'S CONFIDENT CONGRESS WILL PASS A BILL BY NEXT YEAR THAT WILL OPEN CABLE AND TELEPHONE TO GREATER COMPETITION SEE RELATED ARTICLE WHILE STATE AND LOCAL AGENCIES WONDER HOW TO DEAL WITH COMBINATION WSJ OCT 21 1993 9310210164 931021 INTERNATIONAL CUBA IS SELLING WHAT IT USURPED AND ORIGINAL OWNERS ARE FUMING US CABLES GLOBAL WARNING TO DISSUADE INVESTMENT IN CONFISCATED PROPERTIES BY JOSE DE CORDOBA STAFF REPORTER OF THE WALL STREET JOURNAL MIAMI CUBA'S DESPERATE ATTEMPTS TO ATTRACT FOREIGN INVESTMENT ARE RUNNING INTO FLAK FROM THE US GOVERNMENT AS WELL AS FROM BACARDI CORP THE RUM GIANT WHOSE FIRST DISTILLERY WAS CONFISCATED BY FIDEL CASTRO'S GOVERNMENT IN 1960 PROMPTED BY REPORTS THAT CUBA IS SELLING OR LEASING TO FOREIGN PARTNERS PROPERTIES CONFISCATED FROM US COMPANIES YEARS AGO THE US GOVERNMENT SENT A CABLE LAST MONTH TITLED BUYER BEWARE TO ALL ITS EMBASSIES AND CONSULATES THE CABLE ORDERS US DIPLOMATS WORLDWIDE TO INFORM HOST GOVERNMENTS THAT THE US STRONGLY URGES THEM TO DISSUADE THEIR NATIONALS FROM INVESTING IN CUBAN PROPERTIES THAT COULD BE PART OF THE 18 BILLION IN US CLAIMS FOR ASSETS EXPROPRIATED BY THE CASTRO GOVERNMENT IT IS THE SECOND TIME THAT THE US HAS SENT OUT SUCH A WARNING SINCE 1991 CUBA HAS INTENSIFIED ITS SEARCH FOR FOREIGN INVESTMENT AFTER LOSING SUBSIDIES THAT DISAPPEARED WITH THE COLLAPSE OF ITS TRADE TIES TO THE FORMER SOVIET BLOC WE THINK IT'S USEFUL TO REMIND COMPANIES WORLDWIDE THAT IT'S A SERIOUS ISSUE WHICH NEEDS TO BE CONSIDERED SAYS A US OFFICIAL INCLUDING INTEREST THE US CLAIMS ARE NOW ESTIMATED TO TOTAL ABOUT 5 BILLION CUBAN OFFICIALS SAY THAT HAVANA HAS SETTLED CLAIMS MADE BY SPANISH CANADIAN SWISS ENGLISH AND FRENCH FIRMS THEY SAY HAVANA IS READY TO NEGOTIATE US CLAIMS IF THEY ARE BALANCED AGAINST CUBAN CLAIMS OF ECONOMIC DAMAGE CAUSED BY THE US TRADE EMBARGO OF THE ISLAND WHICH HAVANA ESTIMATES AT 40 BILLION THE EMBARGO WAS IMPOSED AS A RESPONSE TO CUBA'S CONFISCATION OF US PROPERTY MEANWHILE BACARDI WHICH HAD PROPERTIES INCLUDING THREE BREWERIES AND A DISTILLERY SEIZED BY THE CUBAN GOVERNMENT IS ANGRY OVER REPORTS THAT CUBA IS SEARCHING FOR JOINT VENTURE PARTNERS FOR THE BUSINESSES LAWYERS AND POLITICAL CONSULTANTS FOR BACARDI ARE DRAFTING A LETTER WHICH THE COMPANY WILL SEND TO MAJOR BREWERS DISTILLERS AND TRADE ASSOCIATIONS AROUND THE WORLD AS WELL AS EMBASSIES AND FOREIGN GOVERNMENTS THE LETTER ALERTS POTENTIAL INVESTORS THAT BACARDI CONSIDERS THAT ITS PROPERTIES WERE STOLEN THE DISTILLERY AND THE BREWERIES ARE OURS WE WERE NEVER PAID FOR THEM SAYS MANUEL J CUTILLAS THE CHIEF EXECUTIVE OFFICER OF THE CLOSELY HELD BERMUDABASED COMPANY WE THOUGHT WE SHOULD TAKE SOME TYPE OF ACTION TO LET INDUSTRY PEOPLE KNOW THAT WE WOULD BE VERY DISPLEASED IF SOME OF THEM INVEST AND START OPERATING OUR COMPANIES THERE MR CUTILLAS SAYS BACARDI WOULD TAKE ANY LEGAL ACTION NECESSARY TO STOP ACTS THAT IN OUR VIEW ARE ILLEGAL SOME LAWYERS DISPUTE BACARDI'S ABILITY TO TAKE LEGAL ACTION GIVEN THAT INTERNATIONAL LAW PERMITS NATIONS WIDE LATITUDE IN MATTERS CONCERNING EXPROPRIATION BUT BACARDI A CUBAN COMPANY AT THE TIME ITS PROPERTIES WERE CONFISCATED VOWS TO PRESS ON I'M NOT SURE WE CAN STOP IT BUT WE CAN SURE MAKE LIFE PRETTY MISERABLE FOR ANYBODY WHO DOES IT SAYS BRICE M CLAGETT A LAWYER WITH THE WASHINGTON FIRM OF COVINGTON & BURLING WHICH HAS BEEN RETAINED BY BACARDI BACARDI'S CUBAN PROPERTIES WERE WORTH ABOUT 70 MILLION WHEN THEY WERE CONFISCATED IN 1960 MR CUTILLAS SAYS THE THREE BREWERIES WHICH USED TO PRODUCE HATUEY PREREVOLUTIONARY CUBA'S LARGEST SELLING BEER ARE ON A LIST OF 131 PROPERTIES THAT CUBAN OFFICIALS CIRCULATED AT A CONFERENCE ON FOREIGN INVESTMENT IN CUBA THAT WAS HELD IN CANCUN MEXICO AND HAVANA LAST JULY MR CUTILLAS SAYS BACARDI IS LIMITING ITS EFFORTS TO CONFISCATED BUSINESSES AND WOULD NOT TOUCH THE EMOTIONAL ISSUE OF THE RETURN OF PRIVATE RESIDENCES CONFISCATED BY CUBA HE IS A MEMBER OF THE FAMILY THAT FOUNDED BACARDI IN THE CITY OF SANTIAGO DE CUBA IN 1862 INDUSTRY ANALYSTS PLACE BACARDI'S ANNUAL SALES AT 27 BILLION ANOTHER COMPANY LONE STAR INDUSTRIES INC OF STAMFORD CONN IS WORRIED THAT CEMEX SA OF MEXICO THE FOURTHLARGEST CEMENT COMPANY IN THE WORLD MIGHT ACQUIRE LONE STAR'S OLD CEMENT PLANT IN CUBA AS PART OF A DEBT SWAP LONE STAR WHICH IS EMERGING FROM A CHAPTER 11 REORGANIZATION HAS A 249 MILLION CLAIM FOR ITS CEMENT PLANT REGISTERED WITH THE US FOREIGN CLAIMS SETTLEMENT COMMISSION CEMEX DIDN'T RETURN NUMEROUS CALLS SEEKING COMMENT LONE STAR CHAIRMAN DAVID WALLACE SAYS HE HAS WRITTEN A LETTER TO CEMEX CHIEF EXECUTIVE OFFICER LORENZO ZAMBRANO INQUIRING ABOUT THE STATUS OF THE CEMENT PLANT I KNOW HE IS A DECENT LAWABIDING MAN AND I DON'T BELIEVE HE WOULD TRAFFIC IN STOLEN PROPERTIES SAYS MR WALLACE WHO IS ALSO CHAIRMAN OF THE JOINT CORPORATE COMMITTEE ON CUBAN CLAIMS A GROUP FORMED IN 1974 REPRESENTING ABOUT 50 US CORPORATIONS NEVERTHELESS SAYS MR WALLACE IF CEMEX ACQUIRES THE CUBAN CEMENT PLANT THEN LONE STAR WILL CONSIDER TAKING LEGAL ACTION AGAINST THE MEXICAN COMPANY WE COULD GO AGAINST CEMEX AS A RECEIVER OF STOLEN PROPERTY AND DON'T KID YOURSELF I'D DO IT HE SAYS 9310210163 931021 IRS WILL SETTLE MUNIBOND CASE WITH CHESTER PA BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERNAL REVENUE SERVICE IS ABOUT TO SETTLE A TAX DISPUTE WITH CHESTER PA OVER AN ALLEGEDLY BOGUS 335 MILLION MUNICIPALBOND ISSUE SOLD IN 1986 BY THE FINANCIALLY TROUBLED CITY ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER ALTHOUGH THE IRS HAS FOUND THAT THE ISSUE FLUNKED THE TESTS FOR TAX EXEMPTION THE PENDING SETTLEMENT WILL PRESERVE THE BONDS' TAXEXEMPT STATUS ASSURING INVESTORS THAT THEIR INTEREST INCOME WON'T BE TAXED IN RETURN THE IRS WILL RECOVER CERTAIN FUNDS FROM THE ISSUER AND OTHER PARTIES THAT CONTRIBUTED TO THE SETTLEMENT THE IRS ONCE SOUGHT TO RECOUP 20 MILLION FROM CHESTER BUT REPORTEDLY HAS AGREED TO SETTLE FOR FAR LESS THE CHESTER TRANSACTION WAS ONE OF MORE THAN TWO DOZEN CONTROVERSIAL MUNI DEALS UNDERWRITTEN BY MATTHEWS & WRIGHT GROUP INC IN THE MID1980S SHORTLY BEFORE CERTAIN CHANGES IN TAX LAWS TOOK EFFECT THE SECURITIES AND EXCHANGE COMMISSION ALLEGED THAT THESE TRANSACTIONS VIOLATED SECURITIES LAWS BECAUSE INVESTORS WEREN'T TOLD THAT THE BONDS WOULD PROBABLY BE TAXABLE AS A RESULT OF APPARENT TAX VIOLATIONS MATTHEWS & WRIGHT TURNED IN ITS BROKERDEALER LICENSE IN SETTLING SEC FRAUD CHARGES AND LATER CHANGED ITS NAME TO HELMSTAR GROUP INC UNDER THE PROPOSED IRS ACCORD WHICH HAS BEEN SIGNED BY CHESTER AND COULD BE SIGNED BY THE IRS AS EARLY AS TODAY THE AMOUNT OF THE SETTLEMENT ISN'T SUPPOSED TO BE MADE PUBLIC HELMSTAR ISN'T CONTRIBUTING TO THE SETTLEMENT ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THEY IDENTIFIED THE LAW FIRM THAT SIGNED OFF ON THE CHESTER BOND ISSUE BERKMAN RUSLANDER POHL LIEBER & ENGEL OF PITTSBURGH AS A LEADING CONTRIBUTOR THE IRS WHICH HAS COME UNDER CONSIDERABLE CRITICISM FOR LAX ENFORCEMENT OF RULES GOVERNING MUNICIPAL BONDS HAD NO FORMAL COMMENT ON THE MATTER BUT IS EXPECTED TO MAKE PUBLIC CERTAIN DETAILS ONCE THE ACCORD IS FINALIZED AN OFFICIAL SAID THE IRS WILL MAKE INCREASED EFFORTS TO LET MUNIBOND MARKET PARTICIPANTS AND OTHERS KNOW THAT THE AGENCY IS TAKING MUNI ENFORCEMENT ACTION THE IRS TOLD CHESTER EARLY IN 1991 THAT INTEREST INCOME FROM THE BONDS WOULD BE TAXED IF THE CITY DIDN'T REBATE TO THE GOVERNMENT THE ARBITRAGE PROFITS IT EARNED BY INVESTING PROCEEDS OF THE BOND ISSUE THE BONDS WERE SOLD TO FINANCE A RESOURCE RECOVERY PLANT THAT NEVER WAS BUILT ARBITRAGE WHICH GENERALLY IS BARRED IN THE MUNI MARKET INVOLVES INVESTING BOND PROCEEDS IN HIGHERYIELDING INSTRUMENTS THE 1986 TAX REFORM ACT REQUIRED THAT ARBITRAGE PROFITS BE REBATED TO THE IRS AND THE AGENCY HAD SOUGHT A 20 MILLION ARBITRAGE REBATE FROM CHESTER UNDER THE PROPOSED ACCORD WITH THE IRS KNOWN AS A CLOSING AGREEMENT CHESTER IS SPARED FROM HAVING TO MAKE ANY ARBITRAGE REBATE AND IS PROTECTED FROM ANOTHER POSSIBLE SANCTION DISQUALIFICATION AS AN ISSUER OF TAXEXEMPT SECURITIES 9310210162 931021 INTERNATIONAL TAIWAN'S INDUSTRIAL OUTPUT TAIPEI TAIWAN TAIWAN'S INDUSTRIAL PRODUCTION INDEX ROSE 68 TO 13787 IN SEPTEMBER FROM THE YEAREARLIER MONTH BUT DROPPED 21 FROM AUGUST THE MINISTRY OF ECONOMIC AFFAIRS SAID THE MINISTRY ATTRIBUTED THE 68 RISE MAINLY TO THE RAPID GROWTH IN THE MANUFACTURING INDUSTRY OF ELECTRONIC GEAR AND ELECTRIC APPLIANCES AND TO BASIC METALS THE PETROLEUM INDUSTRY AND CONSTRUCTION 9310210161 931021 WHO'S NEWS MEDICAL CARE AMERICA INC MEDICAL CARE AMERICA INC DALLAS STEVEN C STRAUS 37 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF THIS OPERATOR OF OUTPATIENT SURGERY AND INFUSION THERAPY CENTERS THE COMPANY SAID HE WILL BE RESPONSIBLE FOR ITS NATIONAL SALES EFFORTS MR STRAUS WAS MOST RECENTLY A VICE PRESIDENT AT BAXTER HEALTHCARE CORP A DEERFIELD ILLBASED HEALTH PRODUCTS SUPPLY CONCERN 9310210160 931021 POPULARITY OF SOME COMPUTERS MEANS BUYERS MUST WAIT BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL AS THE BIGGEST PERSONALCOMPUTER MAKERS RUN ROUGHSHOD OVER SMALLER COMPETITORS THE GIANTS' SUCCESS IS LEADING TO LONG DELAYS FOR CONSUMERS WHO WANT TO BUY THEIR BESTSELLING PRODUCTS INTERNATIONAL BUSINESS MACHINES CORP APPLE COMPUTER INC COMPAQ COMPUTER CORP AND AST RESEARCH INC ARE SWAMPED WITH ORDERS FOR SUCH MACHINES AS IBM'S THINKPAD PORTABLE AND APPLE'S LC III DESKTOP FOR SCHOOLS THE BACKLOG OF ORDERS IS GENERATED BY A BUYERS' RUSH TO THE BESTKNOWN PC BRAND NAMES LURED BY PRICES THAT HAVE BEEN HACKED TO THE BONE OVER THE PAST TWO YEARS AS WELL AS ENHANCED POWER AND PERFORMANCE SMALLER CLONE PC VENDORS CAN NO LONGER COMPETE EFFECTIVELY ON PRICE AND THEIR MARKET SHARE IS SLIPPING AWAY CLEARLY WHEN THE MAIN PLAYERS DROPPED THEIR PRICE IT ALLOWED PEOPLE TO MOVE UP TO A NAME BRAND FOR A VERY SMALL INCREMENTAL INVESTMENT SAID HOWARD HIGH A SPOKESMAN AT INTEL CORP THE BIG CHIP MAKER BASED IN SANTA CLARA CALIF THE TOP FIVE PC VENDORS WHICH INCLUDE DELL COMPUTER CORP ARE EXPECTED TO ACCOUNT FOR 488 OF THE US MARKET THIS YEAR COMPARED WITH 369 LAST YEAR A NEARLY ONETHIRD JUMP AND THEIR BIGGEST MARKET SHARE SINCE THE MID1980S ACCORDING TO PROJECTIONS BY INTERNATIONAL DATA CORP A FRAMINGHAM MASS MARKET RESEARCH FIRM IF YOU TAKE ALL THREE OF THOSE MAJOR MANUFACTURERS IBM APPLE AND COMPAQ YOU ARE SEEING A HISTORIC LEVEL OF DEMAND SAID KENNETH R WATERS PRESIDENT OF MICROAGE INC A TEMPE ARIZ DISTRIBUTOR OF PCS AND PERIPHERAL PRODUCTS THAT CARRIES THE THREE COMPANIES' LINES FOUR OF THE FIVE BIG PC MAKERS REPORT SPOT SHORTAGES AND BACKLOGS OF UP TO THREE MONTHS WHICH THEY FEAR WILL COST THEM CUSTOMERS WHO DECIDE NOT TO WAIT A FEW SMALLER CLONES ARE TRYING TO SOP UP THE OVERFLOW MINNEAPOLISBASED ZEOS INTERNATIONAL LTD FOR EXAMPLE SAID IT HAS INCREASED REVENUE PARTLY BECAUSE IT ADVERTISES SAMEDAY DELIVERY ON PCS WE ARE USING DELIVERY AS A WEAPON RIGHT NOW SAID RICK APPLE VICE PRESIDENT OF MARKETING BUT THE COMPANY STILL IS CHALKING UP LOSSES BECAUSE OF THE SHIFT TO NAME BRANDS AT IBM IN ARMONK NY OFFICIALS SAY THE COMPANY CAN'T FILL ALL ORDERS UNTIL THE 1994 FIRST QUARTER FOR ITS HOTSELLING LINE OF THINKPAD PORTABLE COMPUTERS AND ITS HIGHEND PERSONAL SYSTEM/2 DESKTOP COMPUTER FOR BUSINESSES AT AST OFFICIALS SAY IT WILL TAKE UNTIL JANUARY IN SOME CASES TO FILL ORDERS FOR POPULAR PRODUCT LINES SUCH AS THE MIDRANGE BRAVO DESKTOP PC THE IRVINE CALIF COMPUTER MAKER REPORTS THAT ITS CONSUMERORIENTED ADVANTAGE LINE OF PCS ALSO IS BACKLOGGED WE THINK WE CATCH UP AND BOOM WE GET BACKLOGGED AGAIN SAID DANIEL D SHEPPARD AST'S DIRECTOR OF PRODUCT MARKETING FOR BRAVO AND PORTABLE SYSTEMS ADDED SAFI U QURESHEY AST'S COFOUNDER PRESIDENT AND CHIEF EXECUTIVE OFFICER THE BACKLOG MAY CONTINUE FOR MANY MANY MONTHS A SPOKESWOMAN FOR HOUSTONBASED COMPAQ PLAYED DOWN THE PROBLEM SAYING THERE WERE A COUPLE OF SELECT MODELS THAT WE ARE SLIGHTLY BEHIND ON MICROAGE'S MR WATERS SAID THAT COMPAQ IS BACKORDERED ON ITS ENTRYLEVEL PROLINEA DESKTOP COMPUTER FOR BUSINESSES AND THAT THEY CLAIM THEY WILL GET CAUGHT UP IN THE NEXT MONTH ALTHOUGH APPLE BASED IN CUPERTINO CALIF HAS A 15 BILLION INVENTORY SWELLED BY SOME POORPERFORMING PRODUCTS IT ACKNOWLEDGES IT HAS HAD SPOT SHORTAGES IN ITS LC III AND NEWER CENTRIS AND QUADRA AV SYSTEMS THE COMPANY SAID THE CENTRIS SHORTAGES RESULTED FROM A COMBINATION OF UNEXPECTEDLY HIGH DEMAND AND APPLE'S UNWILLINGNESS TO STOCK MORE INVENTORY BECAUSE THE LINE IS BEING DISCONTINUED EFFECTIVE TODAY THE CENTRIS LINE IS MERGED INTO THE QUADRA LINE BACKLOG IS BAD BUT INVENTORY IS WORSE SAID RANDY BATTAT VICE PRESIDENT IN APPLE'S PC DIVISION COMPANY OFFICIALS SAID NEW PRODUCTS ARE BEING RELEASED TODAY WITH UP TO SIX WEEKS OF INVENTORY THE APPLE SHORTAGES HAVE BEEN FELT AT THE RETAIL LEVEL JOHN PARKIN ASSISTANT MANAGER OF COMPUTERWARE A MACINTOSH RETAILER IN SUNNYVALE CALIF SAID THIS WEEK THAT HIS STORE HAD BEEN OUT OF THE CENTRIS 610 FOR MORE THAN TWO MONTHS WE HAD A LOT OF PEOPLE WAITING SO WE DIDN'T TAKE ANY MORE ORDERS MR PARKIN SAID DELL SAYS IT HAS NO BACKLOG BECAUSE IT CUSTOMBUILDS SYSTEMS AND SO CAN BETTER BALANCE SUPPLY WITH DEMAND MANUFACTURERS ARE CAUTIOUS ABOUT INCREASING PRODUCTION CAPACITY BECAUSE THEY AREN'T SURE HOW LONG DEMAND WILL REMAIN HEATED FOR CERTAIN PRODUCTS APPLE FOR INSTANCE OVERESTIMATED DEMAND THIS YEAR FOR THE POWERBOOK PORTABLE AND NOW HAS A BALLOONING INVENTORY THE BIG COMPUTER MAKERS ALSO ARE CONSTRAINED BY THEIR SUPPLIERS WHO WERE CAUGHT BY SURPRISE IEC ELECTRONICS CORP A CONTRACT MANUFACTURER IN NEWARK NY REPORTS AS MUCH AS A 16WEEK DELAY IN SOME PRODUCTS LEAVING PC VENDOR CUSTOMERS UNABLE TO FILL ORDERS EVEN MAKERS OF COMPUTER DISK DRIVES WHICH HAVE BEEN IN SIGNIFICANT OVERSUPPLY IN RECENT MONTHS REPORT THEY CAN'T MEET ORDERS ON SOME MORE POWERFUL MODELS ACCORDING TO ALAN F SHUGART PRESIDENT OF SEAGATE TECHNOLOGY INC A BIG DISKDRIVE MAKER IN SCOTTS VALLEY CALIF THERE ARE PEOPLE THAT WANT TO BUY HUNDREDS OF THOUSANDS OF CERTAIN DISK DRIVES AND WE ONLY HAVE TENS OF THOUSANDS 9310210158 931021 CHRYSLER CORP DEBT UPGRADED AUSTRIA DEAL SET COMPANY TO ANNOUNCE PLAN FOR EUROPEAN OUTPUT OF CHEROKEE VEHICLES BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL A RESURGENT CHRYSLER CORP RECEIVED A DEBT UPGRADE FROM MOODY'S INVESTOR'S SERVICE INC AND IS PLANNING TO LAUNCH EUROPEAN PRODUCTION NEXT YEAR OF ITS HIGHLY SUCCESSFUL JEEP GRAND CHEROKEE CHRYSLER PRESIDENT ROBERT A LUTZ SAID AT THE TOKYO MOTOR SHOW THAT STEYRDAIMLERPUCH AG OF AUSTRIA WILL ASSEMBLE AS MANY AS 45000 SPORTUTILITY VEHICLES A YEAR UNDER CONTRACT TO CHRYSLER STEYR CURRENTLY ASSEMBLES CHRYSLER MINIVANS IN GRAZ AUSTRIA FOR SALE IN EUROPE CHRYSLER PLANS TO ANNOUNCE THE AUSTRIAN DEAL TODAY UNLIKE RIVALS GENERAL MOTORS CORP AND FORD MOTOR CO CHRYSLER HAS ONLY A SMALL PRESENCE IN EUROPE MAKING IT VULNERABLE TO THE SWINGS IN THE HIGHLY CYCLICAL NORTH AMERICAN MARKET CHRYSLER IS TRYING TO BOLSTER ITS BALANCE SHEET AND EXPAND EUROPEAN SALES IN ORDER TO INSULATE ITSELF FROM THE NEXT US DOWNTURN IN THE US MEANWHILE MOODY'S CITED CHRYSLER'S EFFORTS TO IMPROVE ITS BALANCE SHEET AS ONE REASON FOR THE DEBT UPGRADE WHICH FOLLOWS RECENT DECISIONS BY BOTH MOODY'S AND STANDARD & POOR'S CORP TO RAISE THE AUTO MAKER TO INVESTMENTGRADE LEVELS MOODY'S YESTERDAY UPGRADED 13 BILLION OF CHRYSLER AND CHRYSLER FINANCIAL CORP SENIOR DEBT TO BAA2 FROM BAA3 THE UPGRADES AND THE EXPANSION PLANS ARE THE LATEST IN A STRING OF GOOD NEWS FOR CHRYSLER THE AUTO MAKER RECENTLY REPORTED STRONGERTHANEXPECTED THIRDQUARTER EARNINGS OF 423 MILLION MOODY'S CITED THE STRONG EARNINGS AS A BASIS FOR THE UPGRADE AND SAID CHRYSLER'S POSITION SHOULD BE FURTHER IMPROVED BY THE NEW RAM PICKUP AND ITS NEON COMPACT CAR WHICH GOES ON SALE IN NORTH AMERICA AND EUROPE EARLY NEXT YEAR MR LUTZ SAID THE AUSTRIAN DEAL WILL TAKE SOME OF THE PRESSURE OFF CHRYSLER'S DETROIT PLANT WHERE MORE THAN 200000 GRAND CHEROKEES ARE BUILT A YEAR WITHOUT REQUIRING MUCH NEW INVESTMENT CHRYSLER WILL EXPORT SUCH MAJOR PARTS AS BODY SHEETMETAL STAMPINGS GASOLINE ENGINES AND TRANSMISSIONS TURBODIESEL ENGINES INTERIOR TRIM AND CERTAIN OTHER PARTS WILL BE PURCHASED IN EUROPE PRODUCTION IS TO START IN LATE 1994 THIS PERMITS US TO EXPAND GRAND CHEROKEE CAPACITY AS MUCH AS 45000 UNITS A YEAR AND WE CAN PROBABLY SUPPLY OUR TOTAL EUROPEAN SALES FROM THAT MR LUTZ SAID CHRYSLER PLANS TO EXPORT ABOUT 10000 GRAND CHEROKEES NEXT YEAR TO EUROPE WHERE IT HAS ONLY LATELY INTRODUCED THE VEHICLE STEYR IS CURRENTLY PRODUCING BETWEEN 20000 AND 30000 MINIVANS A YEAR SEPARATELY JAPANESE AND US OFFICIALS HELD THE FIRST OF TWO DAYS OF HIGHLEVEL TALKS IN TOKYO AIMED AT REDUCING FRICTIONS OVER AUTO TRADE WHILE DIPLOMATS TRIED TO PAINT A CHEERFUL PICTURE OF THE TALKS US AUTOINDUSTRY SPOKESMEN LED BY MR LUTZ CONTINUED TO CRITICIZE JAPANESE TRADING PRACTICES THE IMBALANCE IN AUTO TRADE ACCOUNTS FOR ABOUT TWOTHIRDS OF THE 50 BILLION US TRADE DEFICIT WITH JAPAN IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CHRYSLER CLOSED AT 52125 DOWN 125 CENTS 9310210157 931021 CANADIAN BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT SAID IT SOLD IN AN AUCTION 180 BILLION CANADIAN DOLLARS US136 BILLION OF 65 BONDS DUE SEPT 1 1998 AT AN AVERAGE YIELD OF 5948 THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9310210156 931021 BUSINESS BRIEFS AMBANC CORP AND LINCOLNLAND BANCSHARES INC HAVE SIGNED A LETTER OF INTENT PROVIDING FOR THE MERGER OF LINCOLNLAND INTO THE AMBANC GROUP IN AN ALLSTOCK TRANSACTION VALUED AT ABOUT 17 MILLION WESTINGHOUSE ELECTRIC CORP HAS BEEN AWARDED A 54 MILLION CONTRACT FOR TWO COMBUSTION TURBINE GENERATORS BY THE NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY THE MODEL 501D5 COMBUSTION TURBINEGENERATORS WILL BE INSTALLED IN POWER PLANTS IN ROCKY MOUNT AND NEAR BATTLEBORO NC ROBERT HALF INTERNATIONAL INC HAS ACQUIRED KATHLEEN CALL ASSOCIATES OF SAN FRANCISCO AND THE SAN FRANCISCO BRANCH OF TEMPLETON & ASSOCIATES BOTH FIRMS SPECIALIZE IN THE PLACEMENT OF PARALEGALS TERMS WEREN'T DISCLOSED RR DONNELLEY & SONS CO BOUGHT A MAJORITY POSITION IN TESTDRIVE CORP TERMS WEREN'T DISCLOSED BUT A SPOKESMAN FOR TESTDRIVE SAID IT WAS IN THE MULTIMILLION DOLLAR RANGE DYLEX LTD PLANS TO CONVERT A SUBSTANTIAL NUMBER OF ITS 86 UNPROFITABLE STEEL MENSWEAR RETAIL OUTLETS TO OTHER SPECIALTY CHAINS AND TO CLOSE THE REMAINDER OVER THE NEXT THREE MONTHS MEDAPHIS CORP AGREED TO ACQUIRE PRACTICE MANAGEMENT DIVISION A UNIT OF CYCARE SYSTEMS INC SCOTTSDALE ARIZ FOR 24 MILLION 9310210155 931021 MARKETING & MEDIA DOW JONES LIFTS RATES ON JOURNAL ADVERTISING NEW YORK DOW JONES & CO SAID NATIONAL ADVERTISING RATES FOR THE WALL STREET JOURNAL WILL RISE 38 BEGINNING JAN 3 1994 ADVERTISING RATES FOR THE EASTERN MIDWEST SOUTHWEST AND WESTERN EDITIONS WILL ALSO RISE 38 RATES FOR THE 17 US ADVERTISING REGIONS WILL RISE 58 FOR THE WALL STREET JOURNAL EUROPE PUBLISHED IN BRUSSELS AND PRINTED IN BRITAIN THE NETHERLANDS AND SWITZERLAND AD RATES WILL RISE 8 RATES FOR THE ASIAN WALL STREET JOURNAL PUBLISHED IN HONG KONG AND ALSO PRINTED IN SINGAPORE AND TOKYO WILL INCREASE 91 RATES FOR THE ASIAN WALL STREET JOURNAL WEEKLY PUBLISHED IN NEW YORK FOR NORTH AMERICAN READERS WILL INCREASE 3 IN ADDITION TO THE WALL STREET JOURNAL AND ITS INTERNATIONAL EDITIONS DOW JONES PUBLISHES BARRON'S MAGAZINE AND OTHER PERIODICALS ELECTRONIC BUSINESS INFORMATION SERVICES AND THE OTTAWAY GROUP OF COMMUNITY NEWSPAPERS 9310210154 931021 BUSINESS BRIEF COMPAQ'S THIRDQUARTER PROFIT SURGED ON STRONG SALES IN OVERSEAS MARKETS COMPAQ COMPUTER CORP SAID ITS EARNINGS MORE THAN DOUBLED IN THE THIRD QUARTER PARTLY BECAUSE OF AN UNEXPECTEDLY STRONG SHOWING OVERSEAS THE HOUSTON PERSONALCOMPUTER MAKER REPORTED NET INCOME OF 1068 MILLION OR 126 A SHARE COMPARED WITH 494 MILLION OR 61 CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 64 TO 175 BILLION FROM 107 BILLION THE STRENGTH OF COMPAQ'S RESULTS SURPRISED MANY ANALYSTS AND SENT THE COMPANY'S STOCK UP 250 OR 4 TO 64875 IN NEW YORK STOCK EXCHANGE TRADING WALL STREET HAD EXPECTED COMPAQ TO EARN ABOUT 105 A SHARE IN THE THIRD QUARTER USUALLY ONE OF THE COMPUTER INDUSTRY'S SLOWEST PERIODS THE JUGGERNAUT OR WHATEVER YOU WANT TO CALL IT JUST SEEMS TO CONTINUE SAID NEERAJ K VOHRA A COMPUTERHARDWARE EQUITY ANALYST AT STANDARD & POOR'S CORP IN NEW YORK IT WAS A BLOWOUT QUARTER DARYL J WHITE COMPAQ'S CHIEF FINANCIAL OFFICER SAID THE COMPANY RECORDED YEARONYEAR SALES GROWTH IN EVERY REGION WORLDWIDE INCLUDING EUROPE WHERE AN ECONOMIC SLOWDOWN HAS HURT OVERALL COMPUTER SALES MR WHITE SAID COMPAQ'S SALES IN EUROPE WERE UP 37 DURING THE QUARTER WHILE JAPAN WAS UP MORE THAN FOURFOLD AND OTHER ASIAN SALES MORE THAN DOUBLED MR WHITE SAID COMPAQ'S SALES IN NORTH AMERICA ROSE 75 WHILE LATIN AMERICAN SALES MORE THAN DOUBLED DESPITE MANY ANALYSTS' PROJECTIONS THAT THE PC BUSINESS WILL SLOW DOWN IN THE FOURTH QUARTER PARTICULARLY COMPARED WITH THE RECORD CHRISTMAS BUYING SEASON OF 1992 MR WHITE SAID COMPAQ SEES NO SUCH SLOWDOWN HE SAID COMPAQ EXPECTS YEARONYEAR GAINS IN THE QUARTER THE MARKET APPEARS TO BE GOING UP MR WHITE SAYS WE'RE SEEING STRONG DEMAND ON ALL OF OUR PRODUCTS BUT WHILE MR VOHRA RAISED HIS FOURTHQUARTER EARNINGS ESTIMATES IN LIGHT OF THE MOST RECENT RESULTS HE SAID WALL STREET ALREADY IS STARTING TO GET NERVOUS THERE'S AN EDGINESS IN THE MARKET HE SAID IT HAS BEEN GREAT FOR A WHOLE YEAR NOW BUT WHEN DOES IT END 9310210153 931021 KINNARD INVESTMENTS INC MINNEAPOLIS KINNARD INVESTMENTS INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE MOORE JURAN & CO FOR 29 MILLION OF ITS STOCK AND CASH IN AN ALLOCATION TO BE DETERMINED BY THE NOV 30 CLOSING DATE MOORE JURAN A CLOSELY HELD MINNEAPOLIS INVESTMENT FIRM EMPLOYS 32 PEOPLE 9310210152 931021 KAMAN UNIT CHANGES ITS NAME HUDSON MASS EML RESEARCH INC A UNIT OF KAMAN CORP CHANGED ITS NAME TO KAMAN ELECTROMAGNETICS CORP THE COMPANY SAID THE NAME CHANGE REFLECTS ITS GROWTH AND DIVERSIFICATION FROM DEFENSE RESEARCH AND DEVELOPMENT INTO PRODUCTS AND SYSTEMS FOR INDUSTRIAL AND COMMERCIAL MARKETS 9310210151 931021 MARKETING & MEDIA AMERICAN BRANDS PROFIT FELL 58 IN THIRD QUARTER BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL OLD GREENWICH CONN AMERICAN BRANDS INC SAID THIRDQUARTER PROFIT PLUNGED 58 AND WARNED THAT EARNINGS MAY BE DOWN IN 1994 AS WELL PRIMARILY BECAUSE OF TURMOIL IN THE US TOBACCO MARKET IN RESPONSE TO THE EARNINGS DECLINE AMERICAN BRANDS ANNOUNCED THAT IT IS FREEZING EXECUTIVE SALARIES AND OFFERING EARLY RETIREMENT TO MORE THAN 200 EMPLOYEES AT ITS CORPORATE HEADQUARTERS AND US TOBACCO UNIT AMERICAN BRANDS ALSO SAID IT IS SLASHING ITS US TOBACCO MARKETING BUDGET AND WARNED THAT ADDITIONAL STAFF CUTS ARE POSSIBLE NEXT YEAR THE COMPANY'S AMERICAN TOBACCO UNIT HAS ALREADY TRIMMED ITS NORTH CAROLINA CIGARETTE PLANT WORK FORCE BY 13 OR 164 EMPLOYEES PHILIP MORRIS COS' DECISION IN APRIL TO CUT PRICES ON PREMIUM CIGARETTE BRANDS HAS TAKEN A PARTICULARLY HARSH TOLL ON THE SECONDTIER CIGARETTE COMPANIES SUCH AS AMERICAN TOBACCO THE MAKER OF CARLTON MISTY AND PALL MALL AMERICAN BRANDS IS GETTING CRUSHED SAID GARY BLACK TOBACCO ANALYST AT SANFORD C BERNSTEIN & CO FOR THE QUARTER AMERICAN BRANDS'S NET INCOME FELL TO 85 MILLION OR 42 CENTS A SHARE FROM 2027 MILLION OR 98 CENTS A SHARE A YEAR EARLIER REVENUE FELL 12 TO 33 BILLION AMERICAN BRANDS SAID EXCLUDING THE NEGATIVE IMPACT OF CURRENCY TRANSLATIONS REVENUE WOULD HAVE RISEN 1 THE AMERICAN TOBACCO UNIT REPORTED A LOSS OF 35 MILLION FOR THE QUARTER THE LOSS INCLUDES ONETIME CHARGES TOTALING 60 MILLION FOR A 30 MILLION BUYDOWN OF TOBACCO WHOLESALERS' INVENTORIES TO REFLECT LOWER CIGARETTE PRICES AND A 30 MILLION RESTRUCTURING CHARGE PROFIT FELL SLIGHTLY IN INTERNATIONAL TOBACCO THE COMPANY'S LARGEST PROFIT CENTER THE RESULT OF UNFAVORABLE CURRENCY EXCHANGE RATES IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY AMERICAN BRANDS SHARES FELL 75 CENTS TO 33625 THE COMPANY POINTED OUT THAT 53 OF ITS PROFIT THIS YEAR HAS COME FROM NONTOBACCO BUSINESSES SUCH AS JIM BEAM LIQUORS AND MASTER LOCKS STILL JIM BEAM BRANDS' THIRDQUARTER PROFIT FELL 7 REFLECTING INTENSIFYING PRICE COMPETITION 9310210150 931021 CPC SETS NEW STOCK BUYBACK ENGLEWOOD CLIFFS NJ CPC INTERNATIONAL INC SAID ITS BOARD AUTHORIZED THE REPURCHASE OF AN ADDITIONAL FOUR MILLION COMMON SHARES THE COMPANY SAID THE PROGRAM WILL BEGIN WHEN A CURRENT BUYBACK OF TWO MILLION SHARES CONCLUDES WHICH IS EXPECTED TO BE BY THE END OF THIS YEAR OR EARLY NEXT YEAR AS OF SEPT 30 CPC A MAKER OF CONSUMER FOODS HAD ABOUT 150 MILLION SHARES OUTSTANDING IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CPC CLOSED AT 46625 DOWN 50 CENTS 9310210149 931021 INTERNATIONAL UK COURT CLEARS HURDLE FOR CANARY WHARF RESCUE LONDON A BRITISH HIGH COURT CLEARED A LASTMINUTE SNAG SO THAT THE GIANT CANARY WHARF DEVELOPMENT OUTSIDE LONDON CAN EMERGE FROM RECEIVERSHIP BY THE END OF THIS MONTH AS PLANNED THE COURT RULED IN FAVOR OF CANARY WHARF'S BANKS AND CREDITORS WHICH LAST MONTH HAD APPROVED A 11 BILLION 164 BILLION RESCUE PLAN FOR THE OFFICE COMPLEX AND AGAINST ADVERTISING AGENCY WPP GROUP PLC AND ITS OGILVY & MATHER LTD SUBSIDIARY A TENANT OPPOSED TO THE REORGANIZATION OGILVY & MATHER DECLINED TO COMMENT THE CANARY WHARF PLAN IS THE UK'S LARGESTEVER REFINANCING PROJECT OWNERSHIP OF THE COMPLEX WILL REVERT TO ITS 10 MAJOR BANK LENDERS WHICH WILL OPERATE CANARY WHARF UNDER THE NAME SYLVESTER INVESTMENTS LTD AN ALLUSION TO THE CANARYOBSESSED CARTOON CAT THE NEW COMPANY PLANS TO FINISH CONSTRUCTION ON ONE BUILDING AND TO CONTRIBUTE 278 MILLION TO EXTEND LONDON'S UNDERGROUND RAIL SERVICE TO THE COMPLEX WHICH BORDERS THE THAMES RIVER 9310210148 931021 TEXACO OCCIDENTAL 3RDPERIOD PROFIT FELL ON LOWER OIL PRICES ONETIME ITEMS BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL TEXACO INC SAID THIRDQUARTER NET INCOME SANK BY MORE THAN HALF WHILE OCCIDENTAL PETROLEUM CORP SAID ITS NET FELL 15 IN A QUARTER MARKED BY SHARPLY LOWER OIL PRICES AND AN ARRAY OF ONETIME ITEMS THESE ARE THE FIRST BIG US OIL COMPANIES TO DISCLOSE THIRDPERIOD RESULTS IN WHAT ANALYSTS SAY WILL BE A HODGEPODGE THE DECLINE IN OIL PRICES IS VERY DIFFICULT FOR THESE COMPANIES TO OVERCOME SAID GEORGE GASPAR OIL ANALYST AT ROBERT W BAIRD & CO IN MILWAUKEE BUT HE PREDICTED THAT CHEVRON CORP AND MOBIL CORP WOULD POST INCREASES IN OPERATING PROFITS BECAUSE THEY HAVE GREATER EXPOSURE TO REFINING AND MARKETING OPERATIONS OVERSEAS PARTICULARLY IN ASIA US NATURALGAS PRICES WERE MUCH STRONGER IN THE QUARTER BUT NOT ENOUGH TO OFFSET THE DROP IN CRUDE TEXACO BASED IN WHITE PLAINS NY SAID IT SOLD OIL FOR AN AVERAGE OF 1355 A BARREL IN THE QUARTER 24 BELOW THE 1781 OF A YEAR EARLIER STRIPPING AWAY ONETIME CHARGES AND DISCONTINUED OPERATIONS TEXACO'S OPERATING PROFIT FELL 25 TEXACO'S NET INCOME FELL 55 TO 142 MILLION OR 45 CENTS A SHARE FROM 316 MILLION OR 112 A SHARE IN THE LATEST PERIOD TEXACO TOOK 235 MILLION OF CHARGES TO RESERVE FOR ENVIRONMENTAL REMEDIATION AT REFINERIES AND OTHER GASOLINE OPERATIONS ASSET WRITEDOWNS IN THE NORTH SEA AND STAFF REDUCTIONS PATRICK LYNCH TEXACO'S COMPTROLLER SAID THE COMPANY HAS BEEN REDUCING STAFF AROUND THE WORLD SINCE THE END OF 1991 WHEN EMPLOYMENT TOTALED AROUND 40000 HE SAID TEXACO SEEKS TO REDUCE ITS HEAD COUNT TO 35000 BY THE END OF THIS YEAR WE'LL GET SAVINGS FROM THAT AS WE GO FORWARD HE SAID INDEED COSTCUTTING HAS BEEN A MAJOR FORCE FOR MAINTAINING EARNINGS AT TEXACO AND OTHER MAJOR OIL COMPANIES FOR THE PAST FEW YEARS TEXACO'S LATEST QUARTER ALSO INCLUDED A GAIN OF 152 MILLION TO REFLECT CHANGES IN PETROLEUMTAX LAWS IN THE UK AND A TAX BENEFIT OF 145 MILLION TO REFLECT THE PLANNED SALE OF AN INTEREST IN A SUBSIDIARY MR LYNCH SAID TEXACO PLANS THE SALE TO OFFSET A 164 MILLION LOSS ON THE DISPOSAL OF ITS CHEMICAL OPERATIONS THE COMPANY THIS YEAR SIGNED A MEMORANDUM OF UNDERSTANDING TO SELL MOST OF ITS CHEMICAL OPERATIONS FOR 105 BILLION REVENUE FROM CONTINUING OPERATIONS FELL 13 TO 848 BILLION FROM 976 BILLION OCCIDENTAL BASED IN LOS ANGELES SAID NET FELL TO 71 MILLION OR 20 CENTS A SHARE FROM 84 MILLION OR 27 CENTS A SHARE SALES FELL 10 TO 192 BILLION FROM 213 BILLION IN THE 1993 QUARTER OCCIDENTAL TOOK A 55 MILLION CHARGE BECAUSE OF A CHANGE IN FEDERAL TAX LAW THE QUARTER BENEFITED FROM A 181 MILLION REVERSAL OF A RESERVE THE COMPANY HAD SET ASIDE BUT NO LONGER NEEDED FOR THE SALE OF ITS COAL SUBSIDIARY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY TEXACO ENDED AT 69 DOWN 125 CENTS WHILE OCCIDENTAL DROPPED 125 CENTS TO 20 9310210147 931021 AMR REPORTS STRONG PROFIT USAIR A LOSS THIRDPERIOD RESULTS SHOW RECOVERY WON'T HELP IF COSTS AREN'T CURBED BY JAMES S HIRSCH AND MICHAEL J MCCARTHY STAFF REPORTERS OF THE WALL STREET JOURNAL AMR CORP BENEFITING FROM HIGHER AIR FARES AND LOWER COSTS REPORTED STRONG THIRDQUARTER PROFIT BUT USAIR GROUP INC ANNOUNCED ANOTHER BIG LOSS THE CONTRASTING RESULTS OF THE TWO CARRIERS WHICH WERE EXPECTED UNDERSCORE THAT THE INDUSTRY'S INCIPIENT RECOVERY WON'T HELP FULLSERVICE AIRLINES THAT HAVEN'T REINED IN COSTS AND FACE TOUGH COMPETITION FROM LOWCOST RIVALS USAIR'S COSTS ARE GOING UP AND THE OTHERS' ARE GOING DOWN SAID KIDDER PEABODY ANALYST SAMUEL BUTTRICK THE THIRD QUARTER IS TYPICALLY THE STRONGEST FOR AIRLINES AND THE COMBINATION OF LOW FUEL COSTS A SLIGHT PICKUP IN THE ECONOMY AND COSTCUTTING PROGRAMS ARE EXPECTED TO PUT THE INDUSTRY IN THE BLACK FOR THE FIRST TIME IN TWO YEARS WINGS HOLDINGS INC'S NORTHWEST AIRLINES AND SOUTHWEST AIRLINES HAVE ALREADY REPORTED SHARPLY IMPROVED QUARTERLY EARNINGS AMR THE PARENT OF AMERICAN AIRLINES EARNED 118 MILLION OR 133 A SHARE COMPARED WITH A YEAREARLIER LOSS OF 100 MILLION OR 132 A SHARE THE 1993 QUARTER INCLUDES A CHARGE OF 7 MILLION OR 10 CENTS A SHARE FOR EARLY RETIREMENT OF DEBT REVENUE INCREASED 13 TO 42 BILLION FROM 373 BILLION THE RESULTS PROMPTED A QUICK RESPONSE FROM AMR'S FLIGHT ATTENDANTS UNION WHICH SET A STRIKE DATE OF ON OR BEFORE NOV 22 IF A NEW CONTRACT ISN'T SIGNED THE UNION SAID THAT AMR'S PROFIT PROVES THE COMPANY CAN AFFORD HIGHER WAGES A POSITION THAT AIRLINE OFFICIALS DENIED USAIR POSTED A THIRDQUARTER LOSS OF 1776 MILLION AFTER TAKING A 672 MILLION CHARGE FOR CUTTING ITS WORK FORCE THE QUARTERLY LOSS WHICH THE AIRLINE HAD FORECAST LAST MONTH AMOUNTED TO 333 A SHARE IN THE YEAREARLIER QUARTER USAIR HAD A LOSS OF 1055 MILLION OR 251 A SHARE INCLUDING A 103 MILLION GAIN ON THE SALE OF THE COMPANY'S GENERAL AVIATION OPERATIONS REVENUE ROSE 28 TO 175 BILLION FROM 17 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AMR SHARES ROSE 1 OR 15 TO CLOSE AT 68 WHILE USAIR STOCK CLOSED UNCHANGED AT 1375 A SHARE SEVERAL FACTORS CONTRIBUTED TO AMR'S SECONDCONSECUTIVE PROFITABLE QUARTER ITS REVENUE YIELD OR THE AVERAGE AMOUNT THAT ONE PASSENGER PAYS TO FLY ONE MILE INCREASED 215 TO 1066 CENTS REFLECTING HEAVY DISCOUNTING THAT OCCURRED DURING THE YEAREARLIER PERIOD AMR THE NATION'S SECONDLARGEST CARRIER ALSO SAID ITS RESULTS REFLECT IMPROVED EARNINGS IN ITS AMERICAN EAGLE COMMUTER OPERATIONS LOWER INTEREST COSTS INCREASED LABOR PRODUCTIVITY AND THE GROWTH OF NONAIRLINE BUSINESSES BUT THE FORT WORTH TEXAS COMPANY ISN'T CELEBRATING OUR RETURN ON EQUITY IS ABOUT 31 WHICH IS ABOUT WHAT YOU'D GET IN A THREEMONTH CD THESE DAYS SAID AMR'S CHIEF FINANCIAL OFFICER MICHAEL J DURHAM RESPONDING TO CRITICISMS FROM THE ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS MR DURHAM SAID THE AIRLINE WOULD NOT HAVE BEEN PROFITABLE IN THE QUARTER IF THE UNION'S PROPOSED WAGE INCREASES WERE IN EFFECT NEGOTIATIONS BETWEEN THE UNION AND MANAGEMENT ARE ONGOING FOR THE NINE MONTHS AMR EARNED 143 MILLION OR 130 A SHARE COMPARED WITH A YEAREARLIER LOSS OF 735 MILLION OR 984 A SHARE AFTER A 595 MILLION CHARGE REVENUE ROSE 13 TO 1223 BILLION FROM 1082 BILLION USAIR'S OPERATING LOSS ADJUSTING FOR THE EMPLOYEEREDUCTION CHARGE NARROWED TO 433 MILLION FROM 608 MILLION IN THE THIRD QUARTER OF 1992 IN SEPTEMBER USAIR FACING LOWCOST RIVALS LIKE SOUTHWEST ON SEVERAL OF ITS ROUTES SAID THAT BY MID1994 IT WOULD HAVE TO REDUCE ITS WORK FORCE BY ABOUT 2500 JOBS OR 5 STILL PERSONNEL COSTS BY FAR THE CARRIER'S LARGEST OPERATING EXPENSE ROSE IN THE QUARTER HELPING TO KEEP THE ARLINGTON VA CARRIER OUT OF THE BLACK THE HIGHER EMPLOYEE COSTS PARTLY REFLECTED THE EXPIRATION OF A WAGEREDUCTION AGREEMENT COVERING PILOTS AND CERTAIN OTHER WORKERS AT THE SAME TIME USAIR'S REVENUE GROWTH WAS WEAK SAID PAUL KAROS AN AIRLINE ANALYST WITH FIRST BOSTON THAT STEMMED PARTLY FROM USAIR'S STRONG PRESENCE IN FLORIDA THE SUNSHINE STATE DIDN'T SEE FARE REVENUE SNAP BACK AS SHARPLY IN THE QUARTER AS OTHER MARKETS DID HE SAID BECAUSE DISCOUNTING THERE WAS LESS STEEP IN THE YEAREARLIER QUARTER FOR THE FIRST NINE MONTHS OF THE YEAR THE COMPANY'S NET LOSS NARROWED TO 2766 MILLION OR 617 A SHARE FROM 9749 MILLION OR 2158 A SHARE THE LATEST PERIOD INCLUDED A 437 MILLION CHARGE RELATED TO ACCOUNTING CHANGES FOR RETIREMENT BENEFITS THE YEAREARLIER PERIOD HAD A 6281 MILLION CHARGE FOR A RELATED ACCOUNTING CHANGE IN ADDITION TO THE GAIN ON THE GENERAL AVIATION BUSINESS SALES REVENUE FOR THE PERIOD ROSE 45 TO 528 BILLION FROM 505 BILLION 9310210146 931021 MARKETSCAN VITAMIN' SHAMPOO BRINGS SHINE TO P&G PROFITS BY TIMOTHY D SCHELLHARDT STAFF REPORTER OF THE WALL STREET JOURNAL IT'S A HAIRPULLING CONTEST BETWEEN TWO VITAMINSTUFFED GIANTS AND ONE HAS THE UPPER HAND BECAUSE OF THE SUDDEN BOUNCE OF ITS PANTENE PRO V AS IN V FOR VITAMIN LINE OF SHAMPOOS AND CONDITIONERS PROCTER & GAMBLE CO HAS MOVED AHEAD OF HELENE CURTIS INDUSTRIES INC WHICH HAD GAINED THE NO 1 SPOT IN THE 45 BILLIONAYEAR SHAMPOO AND CONDITIONER INDUSTRY JUST A YEAR AGO IF THIS WERE THE MUSIC BUSINESS PANTENE PRO V WOULD BE SKYROCKETING TO THE TOP OF THE CHARTS DECLARES P&G SPOKESWOMAN KIMBERLY STEWART SHAMPOO SALES HAVE GENERALLY BEEN FLAT IN RECENT MONTHS BUT SALES OF PANTENE SHAMPOO A BRAND THAT HAS BEEN AROUND SINCE THE 1940S SOARED 167 IN THE PAST YEAR P&G CHAIRMAN EDWIN L ARTZT SAYS PANTENE'S SUCCESS REFLECTS THE 1992 INTRODUCTION OF ITS 2IN1 PRO V SHAMPOO AND CONDITIONER CONVERSION OF THE BRAND INTO A COMPLETE TREATMENT SYSTEM BY ADDING A LINE OF CONDITIONERS REDUCTION IN THE RETAIL PRICE TO LESS THAN 4 FOR A 13OUNCE BOTTLE COMPARED WITH THE 499 THAT A SEVENOUNCE BOTTLE OF REGULAR PANTENE SOLD FOR AND ADVERTISING THAT CAPTURES THE VALUEADDED BENEFIT OF HEALTHY SHINING HAIR A P&G MARKETING BLITZ HASN'T HURT EITHER BETWEEN AUGUST 1991 AND TODAY P&G HAS DISTRIBUTED 180 MILLION SAMPLES OF PANTENE AND ITS PERT PLUS AND VIDAL SASSOON BRANDS TO US HOUSEHOLDS SAYS MS STEWART IN PROMOTING PANTENE PRO V P&G ALSO SPENT AN ESTIMATED 307 MILLION IN ADVERTISING LAST YEAR A 70 JUMP FROM THE 18 MILLION SPENT IN 1991 THE HEAVY SPENDING CONTINUES ANALYSTS SAY PROMOTIONAL SPENDING ON A BRAND IS USUALLY CRUCIAL BECAUSE THE SUCCESS OF A HAIRCARE PRODUCT ACTUALLY REFLECTS PRICING AND IMAGE NOT WHAT INGREDIENTS GO INTO THE PRODUCTS THE MAJOR MANUFACTURERS BASICALLY USE THE SAME POTIONS FOR THEIR SHAMPOOS AND CONDITIONERS ALTHOUGH THEY CONSTANTLY REFORMULATE PRODUCTS TO INCLUDE SOME NEW MAGIC INGREDIENT DESIGNED FOR INSTANCE TO MAKE HAIR MORE MANAGEABLE OR SHINIER P&G AND HELENE CURTIS WHOSE NO 1 BRAND IS SUAVE MAY CLAIM THAT THE USE OF VITAMINS AND PROTEINS WILL STRENGTHEN HAIR OR MAKE IT HEALTHIER BUT THERE IS LITTLE EVIDENCE TO PROVE THAT INDEED CONSUMER REPORTS RESEARCHERS IN A 1992 STUDY OF SHAMPOOS AND CONDITIONERS CONTEND THAT HAIR CAN'T BE NOURISHED BY VITAMINS A E AND D ALL OF WHICH ARE ADDED TO ONE BRAND OR ANOTHER MOSTLY TO GIVE COPYWRITERS SOMETHING OTHER THAN DETERGENT TO BUILD A DREAM ON THE RESEARCHERS FOUND THAT IVORY LIQUID DISHWASHING DETERGENT ACTUALLY TESTED AS WELL AS MOST SHAMPOO BRANDS HOWEVER P&G'S MS STEWART SAYS TECHNICAL RESEARCH SUPPORTS THE CLAIM THAT PANTENE'S FORMULA WITH VITAMINS PENETRATES THE HAIR TO STRENGTHEN FROM THE INSIDE OUT WHATEVER THE EFFICACY OF THE INGREDIENTS PANTENE PRO V HAS GARNERED CONSIDERABLE CONSUMER LOYALTY UNUSUAL AMONG SHAMPOO BUYERS WHO USUALLY CHANGE PRODUCTS ROUTINELY I WON'T CHANGE FROM PANTENE DECLARES JULIE GLORE OF INDIANAPOLIS THE 24YEAROLD WHO WASHES HER HAIR DAILY SWITCHED FROM HELENE CURTIS'S FINESSE BRAND NEARLY TWO YEARS AGO AFTER HER MOTHER GAVE HER A PANTENE SAMPLE IT'S THE ONLY THING THAT WORKS ON MY HAIR TO MAKE IT VERY MANAGEABLE SHE SAYS KATHY MACALISTER 23 OF CHICAGO ALSO HAS STUCK WITH PANTENE PRO V FOR ALMOST TWO YEARS FAVORING ITS MILDNESS AND MANAGEABILITY ON HER LONG HAIR SHE SWITCHED FROM HELENE CURTIS'S SALON SELECTIVES BRAND AT HELENE CURTIS CHIEF EXECUTIVE OFFICER RONALD GIDWITZ WHO HAS CREATED THREE MAJOR NEW BRANDS HIMSELF IN THE PAST DECADE SAYS THAT P&G'S PANTENE PROV HAS PROVED A TERRIFIC PRODUCT LINE WHILE HE MAINTAINS THAT HELENE CURTIS IS COMPETING VERY EFFECTIVELY IN A VERY DIFFICULT ENVIRONMENT HE ALSO ACKNOWLEDGES THAT THE PANTENE BRAND IS TAKING A LOT OF MARKET SHARE FROM OTHER SHAMPOOS ONE PREMIUMPRICE BRAND THAT HAS SUFFERED IS HELENE CURTIS'S VIBRANCE LAUNCHED LAST YEAR WITH A 55 MILLION ADVERTISING BUDGET MR GIDWITZ ADMITS BEING SOMEWHAT DISAPPOINTED WITH THE VIBRANCE BRAND AND BLAMES A MUDDLED MESSAGE THAT DIDN'T PROPERLY POSITION IT AS A BRAND FOR HEALTHY HAIR OTHERS AREN'T AS KIND HELENE CURTIS HAS A PRODUCT FAILURE ON ITS HANDS THAT IT'S TRYING TO NURSE ASSERTS ANDREW SHORE ANALYST AT PAINEWEBBER INC MANY STORES SAY SALES OF THE PREMIUMPRICE VIBRANCE SHAMPOOS AND CONDITIONERS GEARED FOR THE SAME HEALTHY HAIR SECTOR OF THE MARKET AS PANTENE HAVE FLAGGED IN RECENT MONTHS THE BRAND IS KIND OF DEAD SAYS MARK BEYER HAIRCARE BUYER FOR COPPS CORP A STEVENS POINT WIS CHAIN HELENE CURTIS HAS RESPONDED WITH A FRESH ADVERTISING APPROACH SUBSTITUTING ITS HAIR SO HEALTHY IT SHINES SLOGAN WITH MAKE IT STRONG ON THE INSIDE SO IT SHINES ON THE OUTSIDE THE NEW ADS WHICH EMPHASIZE THAT VIBRANCE LIKE PANTENE CONTAINS VITAMINS SHOULD PUT THE BRAND ON A GROWTH CURVE IN THE NEXT QUARTER OR TWO PREDICTS MR GIDWITZ MR SHORE THINKS THOUGH THAT THE COMPANY WILL HAVE TO BETTER DIFFERENTIATE ITS VIBRANCE LINE FROM THAT OF ITS SALON SELECTIVES BRAND BEFORE RESULTS WILL IMPROVE MUCH BUT DON'T COUNT HELENE CURTIS OUT JUST YET MR GIDWITZ WON'T DENY INDUSTRY REPORTS THAT THE COMPANY PLANS TO SPEND NEARLY 60 MILLION NEXT YEAR TO MARKET NEW PRODUCTLINE EXTENSIONS UPGRADED PACKAGING AND ENHANCED FORMULATIONS FOR THE VIBRANCE SALON SELECTIVES AND FINESSE BRANDS AND RUMORS PERSIST THAT THE COMPANY WILL UNVEIL ANOTHER NEW NATIONAL BRAND IN A YEAR OR SO IN REALITY SAYS HELENE CURTIS'S CHIEF WE'RE IN A VERY LONG MARATHON WITH P&G 9310210145 931021 INTERNATIONAL LLOYD'S NAMES' VOTE TO ADMIT NEW INVESTORS BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THREE CENTURIES OF TRADITION AT LLOYD'S OF LONDON CAME TO A CLOSE NOT WITH A BANG BUT A WHIMPER AFTER 90 MINUTES OF POLITE LARGELY PASSIONLESS DEBATE MEMBERS OF THE INSURANCE WORLD'S MOST FAMOUS MONIKER VOTED LAST NIGHT TO ADMIT CORPORATE AND INSTITUTIONAL INVESTORS INTO THE LLOYD'S UNDERWRITING MARKET A TURF RESTRICTED FOR THE PAST 305 YEARS TO AN EXCLUSIVE GROUP OF INVESTORS KNOWN AS NAMES OPPOSITION CAME MAINLY FROM MEMBERS BURNED BY LLOYD'S MASSIVE LOSSES MOST OF THE OPPONENTS KNEW IN ADVANCE THEY LIKELY WOULDN'T PREVAIL LLOYD'S GOVERNING COUNCIL ALREADY BACKED THE MEASURE IN RECENT DAYS LLOYD'S CHAIRMAN DAVID ROWLAND MADE IT KNOWN THAT HE CONTROLLED NEARLY 13000 PROXY VOTES OUT OF 19300 FILED AND THAT HE INTENDED TO CAST THOSE VOTES TO ENSURE THE PROPOSAL PASSED THE MEASURE PASSED 12884 VOTES TO 591 A GREAT MANY ABSTENTIONS OPPONENTS DID MOUNT A LASTDITCH CHALLENGE BY SEEKING TO POSTPONE THE VOTE CHRISTOPHER STOCKWELL WHO REPRESENTS A GROUP OF INVESTORS SUING LLOYD'S ARGUED MEMBERS SHOULD HOLD OFF ON THE MATTER UNTIL LLOYD'S SETTLES CLAIMS BROUGHT BY NAMES WHO LOST THEIR FORTUNES UNDER LLOYD'S SYSTEM OF UNLIMITED LIABILITY MR STOCKWELL SAID HIS GROUP WASN'T OPPOSED TO ADMITTING CORPORATE CAPITAL BUT COMPLAINED THESE OUTSIDE INVESTORS UNDER THE CURRENT PLAN WON'T HAVE TO HELP LLOYD'S COVER PREVIOUS LOSSES LIKEWISE MANY LLOYD'S MEMBERS MADE CLEAR THEY DON'T WANT TO SHARE POTENTIAL EARNINGS AMONG A WIDER GROUP MICHAEL DEENY WHO REPRESENTS ANOTHER GROUP OF DISSIDENT MEMBERS COMPLAINED LLOYD'S MANAGEMENT ONLY SOUGHT TO ADMIT CORPORATE CAPITAL IN A PANIC EARLIER THIS YEAR OVER WHETHER THE CURRENT NAMES WOULD BE ABLE TO BOTH COVER THEIR LOSSES AND KEEP UNDERWRITING INSURANCE HOWEVER MR DEENY SAID LLOYD'S NOW CONSISTS OF A HARD CORE OF SERIOUSLY RICH PEOPLE WHO CAN DO BOTH TO ADMIT LARGE OUTSIDE INVESTORS HE ARGUED MEANS OUR EQUITY IS BEING DILUTED NOTING THAT 30 POTENTIAL CORPORATE MEMBERS ALREADY HAVE LINED UP 15 BILLION TO 2 BILLION 223 BILLION TO 298 BILLION MR ROWLAND LLOYD'S CHAIRMAN WARNED THAT IF MEMBERS POSTPONED A VOTE THERE IS NO GUARANTEE AT ALL WE CAN CAPTURE THAT AMOUNT OF INVESTMENT AGAIN 9310210144 931021 LOSS IS POSTED BY DIGITAL EQUIPMENT SHARP REVENUE FALL BLAMED ON WEAKNESS IN EUROPE CURRENCY TRANSLATIONS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL DIGITAL EQUIPMENT CORP REPORTED A WIDERTHANEXPECTED LOSS AND A SHARP 9 DECLINE IN REVENUE FOR ITS FIRST QUARTER RAISING THE PROSPECT OF ADDITIONAL WORKFORCE REDUCTIONS AND WRITEDOWNS ANALYSTS SAID ADVERSE CURRENCY TRANSLATIONS ACCOUNTED FOR NEARLY HALF OF THE DROP IN SALES FOR THE PERIOD WHICH ENDED OCT 2 BUT THE BIGGEST PROBLEM WAS WEAKNESS IN EUROPS 50 OF ITS SALES MORE THAN ANY OTHER MAJOR COMPUTER MAKER DIGITAL BASED IN MAYNARD MASS HAD A NET LOSS OF 832 MILLION OR 62 CENTS A SHARE THE OPERATING LOSS WAS EVEN WORSE AT 76 CENTS A SHARE BEFORE A ONETIME TAXRELATED GAIN OF 20 MILLION OR 14 CENTS A SHARE FOR AN ACCOUNTING CHANGE THE RESULTS WERE AN IMPROVEMENT FROM THE YEAREARLIER QUARTER WHEN DIGITAL HAD A LOSS OF 2605 MILLION OR 204 A SHARE REVENUE FELL TO 301 BILLION FROM 331 BILLION CURRENCY TRANSLATIONS AIDED REVENUE LAST YEAR BUT REDUCED THEM IN THE LATEST QUARTER WHEN A STRONGER DOLLAR MADE FOREIGN RECEIPTS LOOK SMALLER ANALYSTS WERE PARTICULARLY CONCERNED ABOUT A FIRSTEVER DECLINE IN REVENUE FROM DIGITAL'S SERVICES BUSINESS WHICH IN PAST QUARTERS HAS HELPED MAKE UP FOR SLOW PRODUCT SALES THAT WAS THE REAL SHOCKER SAID JAY P STEVENS OF DEAN WITTER REYNOLDS INC IT BLINDSIDED EVERYONE DIGITAL SHARES FELL 875 CENTS TO 35125 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY THAT'S DOWN 96 SINCE OCT DIGITAL HAS BEEN STRUGGLING TO REMAKE ITSELF IN THE WAKE OF A HUGE MARKET SHIFT TOWARD SMALLER LESSEXPENSIVE COMPUTERS BASED ON INDUSTRYSTANDARD SOFTWARE AFTER THREE YEARS OF LOSSES DIGITAL HAS RECORDED FOUR STRAIGHT QUARTERS OF IMPROVED RESULTS AND POSTED ITS FIRST QUARTERLY PROFIT FOR THE PERIOD ENDED IN JUNE DESPITE HEAVY COSTCUTTING THOUGH DIGITAL HAS SO FAR BEEN UNABLE TO RESTART SALES GROWTH GROSS PROFIT MARGINS FELL SHARPLY IN THE QUARTER BY 24 PERCENTAGE POINTS FROM A YEAR EARLIER PRODUCT SALES FELL 12 WHILE SERVICE REVENUE WAS DOWN 6 WITHOUT THE CURRENCY EFFECT PRODUCT SALES WOULD HAVE FALLEN BY 6 AND SERVICE REVENUE BY 1 THERE WERE A FEW BRIGHT SPOTS SALES OF PERSONAL COMPUTERS AND DATA STORAGE DEVICES WERE UP SHARPLY WHILE A DECLINE IN MARKET SHARE IN WORKSTATIONS WAS HALTED SALES OF COMPUTERS BASED ON DIGITAL'S NEW ALPHA CHIP PICKED UP AND REACHED ABOUT 10 OF TOTAL PRODUCT SALES IN THE QUARTER OR ABOUT 150 MILLION STILL ANALYSTS EXPRESSED WORRY THEY HAVE TO GET ALPHA MOVING FASTER SAID GEORGE ELLING OF MERRILL LYNCH WHO NOTED THAT THE LACK OF SOFTWARE FOR MACHINES WITH THE NEW CHIP CONTINUES TO RESTRAIN SALES THEY FINALLY HAVE TECHNICALLY STRONG PRODUCTS BUT THEY'RE NOT DELIVERING STEVEN MILUNOVICH OF MORGAN STANLEY & CO SAID DIGITAL FACES PARTICULARLY STIFF COMPETITION FROM HEWLETTPACKARD CO OF PALO ALTO CALIF WILLIAM M STEUL CHIEF FINANCIAL OFFICER SAID DIGITAL DOESN'T CURRENTLY PLAN TO ACCELERATE ITS EXISTING COSTCUTTING EFFORTS ITS WORK FORCE HAS BEEN CUT BY 15000 JOBS IN THE PAST YEAR TO 93200 AT OCT 2 WHILE EXPENSES WERE SLASHED BY 23 AND ENGINEERING COSTS BY 22 COMPANY EXECUTIVES HAVE SAID THEY EXPECT TO CUT THE PAYROLL TO BETWEEN 90000 AND 85000 BY NEXT JUNE MR STEUL SAID THE PACE WON'T CHANGE UNLESS FOR SOME UNSEEN REASON BUSINESS CONDITIONS DETERIORATE WHILE WE'RE DISAPPOINTED PARTICULARLY BY THE REVENUE DECLINE THE COMPANY IS ON PLAN AND WE'RE CONFIDENT ABOUT THE FUTURE HE ADDED MR STEUL ALSO SAID THAT DIGITAL HAS ABOUT 600 MILLION LEFT IN RESERVES TO PAY FOR WORKFORCE REDUCTIONS AND THAT THOSE CUTS WILL CONTINUE AT A GRADUAL PACE THROUGH THE FISCAL YEAR WHICH ENDS NEXT JUNE A SPOKESMAN SAID YESTERDAY THAT IT'S PREMATURE TO SPECULATE ABOUT NEW WRITEDOWNS WITH 600 MILLION STILL IN RESERVE BUT SOME ANALYSTS SAID THAT IF DIGITAL CAN'T BECOME PROFITABLE AGAIN IN THE CURRENT QUARTER MORE DRASTIC MEASURES MAY BE REQUIRED IS THIS A BUMP IN THE ROAD THEY CAN WEATHER WITHOUT TAKING MORE RESERVES OR WILL THEY HAVE TO CUT MORE DEEPLY THAT'S WHAT HAS EVERYONE WORRIED RIGHT NOW SAID JOHN B JONES AN ANALYST WITH SALOMON BROTHERS INC THEY'RE SAYING THEY'RE STILL ON PLAN BUT THE PLAN DIDN'T ANTICIPATE A REVENUE DECLINE OF THIS MAGNITUDE HE ADDED AND MR JONES ESTIMATED THAT SALES IN EUROPE PLUMMETED AS MUCH AS 25 MOST ANALYSTS PLANNED TO SLASH PROFIT ESTIMATES FOR THE FISCAL YEAR SHAO WANG OF SMITH BARNEY CUT HIS FORECAST TO 150 A SHARE SOME ESTIMATES WERE EXPECTED TO DROP TO 1 A SHARE FOR THE PREVIOUS FISCAL YEAR DIGITAL HAD A LOSS OF 2513 MILLION OR 193 A SHARE 9310210143 931021 FINANCING BUSINESS GANDALF TECHNOLOGIES INC GANDALF TECHNOLOGIES INC OTTAWA SAID IT PLANS TO MAKE A PUBLIC OFFERING OF 12 MILLION COMMON SHARES AT 4 CANADIAN DOLLARS US302 A SHARE PROCEEDS WILL BE USED TO REDUCE DEBT AND FOR WORKING CAPITAL PURPOSES THE COMPANY SAID GANDALF DESIGNS AND MAKES TELECOMMUNICATIONS EQUIPMENT AND SYSTEMS THE OFFERING WILL BE UNDERWRITTEN BY WOOD GUNDY INC DEACON BARCLAYS DE ZOETE WEDD LTD GORDON CAPITAL CORP AND RICHARDSON GREENSHIELDS OF CANADA LTD 9310210142 931021 FINANCING BUSINESS NATIONAL INTERGROUP INC NATIONAL INTERGROUP INC INCREASED TO 85 MILLION FROM SIX MILLION THE MAXIMUM NUMBER OF COMMON SHARES IT WILL ACCEPT IN ITS EXCHANGE OFFER THE DIVERSIFIED DALLAS HOLDING COMPANY IS OFFERING TO EXCHANGE ONE SHARE OF A NEW SERIES OF 420 CUMULATIVE EXCHANGEABLE PREFERRED STOCK WITH A LIQUIDATION PREFERENCE OF 40 FOR EACH TWO COMMON SHARES TENDERED IF MORE THAN 85 MILLION COMMON SHARES ARE TENDERED IN THE EXCHANGE THE COMPANY SAID SUCH SHARES WILL BE ACCEPTED FROM ALL HOLDERS OF RECORD OF 99 SHARES OR LESS AND THEREAFTER FROM ALL HOLDERS ON A PRORATA BASIS 9310210141 931021 WHO'S NEWS AMCAST INDUSTRIAL CORP AMCAST INDUSTRIAL CORP DAYTON OHIO R WILLIAM VAN SANT 55 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OF LUKENS INC WAS NAMED A DIRECTOR OF THIS MAKER OF METAL PRODUCTS HE FILLS A VACANCY CREATED BY THE RETIREMENT OF ROBERT E KING 9310210140 931021 CAVALIER SET TO OFFER INSURANCE WICHITA FALLS TEXAS CAVALIER HOMES INC SAID IT AGREED WITH AMERICAN BANKERS INSURANCE GROUP TO OFFER INSURANCE PRODUCTS RELATED TO THE MOBILEHOME INDUSTRY THROUGH ITS NEW CAVALIER INSURANCE AGENCY UNIT TERMS OF THE PACT WEREN'T DISCLOSED THE COMPANY SAID IT COULDN'T ESTIMATE HOW MUCH REVENUE THE ARRANGEMENT MAY GENERATE BUT IT WILL MAKE COMMISSIONS FROM ANY INSURANCE IT SELLS TO MOBILEHOME BUYERS OR TO 60 EXCLUSIVE CAVALIER DEALERS THE COMPANY EVENTUALLY EXPECTS TO OFFER INSURANCE TO ALL OF THE MORE THAN 400 DEALERS WHO SELL CAVALIER'S MOBILE HOMES 9310210139 931021 FINANCING BUSINESS MAXUS ENERGY CORP MAXUS ENERGY CORP DALLAS SAID IT IS OFFERING 200 MILLION OF 9375 NOTES DUE NOV 1 2003 THE OIL AND NATURALGAS EXPLORATION AND PRODUCTION COMPANY SAID PROCEEDS WILL BE USED FOR GENERAL CORPORATE PURPOSES WHICH MAY INCLUDE REDEMPTION OF CERTAIN DEBT AND CASH COLLATERALIZATION OF A LETTER OF CREDIT TO BE ISSUED IN CONNECTION WITH OPERATIONS IN VENEZUELA 9310210138 931021 MARKETING & MEDIA TIMES MIRROR'S NET JUMPED IN 3RD PERIOD ON ONETIME GAINS LOS ANGELES TIMES MIRROR CO'S NET INCOME IN THE THIRD QUARTER ENDED SEPT 26 NEARLY DOUBLED TO 777 MILLION OR 60 CENTS A SHARE MAINLY REFLECTING 82 MILLION IN PRETAX GAINS FROM ONETIME ITEMS NET INCOME IN THE YEAREARLIER PERIOD WAS 407 MILLION OR 32 CENTS A SHARE REVENUE IN THE LATEST PERIOD ROSE 4 TO 924 MILLION FROM 888 MILLION LAST YEAR'S THIRD QUARTER ENDED SEPT 27 INCLUDED IN THE ONETIME ITEMS EQUAL TO 37 CENTS A SHARE WAS 71 MILLION FROM THE SALE OF QVC NETWORK INC STOCK AND 11 MILLION FROM THE SALE OF A SMALL CABLE SYSTEM IN TEXAS A TIMES MIRROR SPOKESWOMAN SAID THE STOCK WAS SOLD IN JULY BEFORE QVC EMERGED AS A BIDDER FOR PARAMOUNT COMMUNICATIONS INC PROFIT IN THE NEWSPAPER PUBLISHING GROUP GREW 17 TO 137 MILLION FROM 135 MILLION THE RESULTS WERE AFTER A CHARGE OF 38 MILLION FOR VOLUNTARY EMPLOYEE SEVERANCE PROGRAMS AT THE LOS ANGELES TIMES TIMES MIRROR SAID IT CONTINUES TO EXAMINE THE COST STRUCTURE OF ITS BUSINESSES AND HAS INITIATED SEVERAL RELATED STUDIES THE RESULTS COULD LEAD TO ADDITIONAL RESTRUCTURING OR OTHER CHARGES IT SAID WHILE ADVERTISING REVENUES AT OUR EASTERN NEWSPAPERS SHOWED A SLIGHT IMPROVEMENT CONTINUING ADVERTISING DECLINES AT THE LOS ANGELES TIMES LEAD US TO REMAIN CAUTIOUS ABOUT OUR OUTLOOK FOR THE YEAR SAID ROBERT F ERBURU CHAIRMAN AND CHIEF EXECUTIVE OFFICER FOR THE NINE MONTHS NET INCOME WAS 1554 MILLION OR 121 A SHARE COMPARED WITH A YEAREARLIER NET LOSS OF 49 MILLION OR FOUR CENTS A SHARE TIMES MIRROR SHARES FELL 125 CENTS TO 3250 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9310210137 931021 UNIVERSITY PATENTS MULLS OPTIONS WESTPORT CONN UNIVERSITY PATENTS INC SAID ITS BOARD HAS RECOMMENDED THAT THE COMPANY RETAIN AN INVESTMENT BANKING FIRM TO EVALUATE ALL OPPORTUNITIES AND TO RECOMMEND A PLAN OF ACTION THAT WILL MAXIMIZE SHAREHOLDER VALUE THE COMPANY SAID IT WILL CONSIDER EVERY POSSIBILITY INCLUDING MERGER PRIVATIZATION ACQUISITION SALE OF PART OR ALL OF THE COMPANY JOINT VENTURES AND COMBINATIONS 9310210136 931021 RX MEDICAL ARRANGES FINANCING FORT LAUDERDALE FLA RX MEDICAL SERVICES CORP SAID IT HAS SIGNED A TWOYEAR AGREEMENT WITH NATIONAL CENTURY FINANCIAL ENTERPRISES INC FOR A 5 MILLION LINE OF RECEIVABLES FUNDING THE COMPANY SAID IT HAS RECEIVED 26 MILLION OF THE TOTAL IN INITIAL FUNDING AND SAID IT WILL USE THE FINANCING FOR DEBT REPAYMENT STRENGTHENING ITS BALANCE SHEET AND VENDOR PAYMENT RX MEDICAL SAID THE VENDOR PAYMENTS INCLUDE A 650000 FINAL PAYMENT TO TOWERS FINANCIAL CORP ITS FORMER RECEIVABLES FINANCING LENDER WHICH FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION IN MARCH 9310210135 931021 LETTERS TO THE EDITOR CURTAILING SPECIALISTS COULD BE DISASTROUS WHITE HOUSE PUTS THE SQUEEZE ON MEDICAL SPECIALISTS SEPT 21 DESCRIBED THE CLINTON DRAFT HEALTH PLAN AS NUDGING MEDICAL SCHOOLS TO DO MORE TO PROMOTE PRIMARYCARE CAREERS ACTUALLY THE PLAN CALLS FOR LEGISLATION TO ESTABLISH A NEW SYSTEM TO MANAGE THE SUPPLY OF SPECIALTY TRAINING FOR PHYSICIANS PAGE 125 OF THE DRAFT PROPOSAL WE ALL RECOGNIZE AND ACCEPT A NEED FOR MORE YOUNG PHYSICIANS TO CHOOSE CAREERS IN PRIMARY CARE HOWEVER IT ALSO SHOULD BE RECOGNIZED THAT THE VASTNESS OF MEDICAL KNOWLEDGE MAKES IT IMPOSSIBLE FOR ANY PHYSICIAN TO PROVIDE ALL THE CARE A PATIENT MIGHT REQUIRE THUS CURRENT AMERICAN HEALTH CARE REQUIRES CLOSE COOPERATION BETWEEN GENERALISTS AND A RANGE OF SPECIALISTS WITH THE SPECIALISTS PROVIDING MUCH SOPHISTICATED PATIENT CARE A FURTHER CASE FOR THE SPECIALISTS IS THAT THEY ACCOUNT FOR MOST OF THE TEACHING AND RESEARCH THAT ALLOW ADVANCES IN HEALTH CARE ANY DRASTIC CURTAILMENT IN TRAINING FOR SPECIALISTS COULD JEOPARDIZE THE RATE OF IMPROVEMENT IN MEDICAL DIAGNOSIS AND TREATMENT AND RETARD THE AVAILABILITY OF THESE ADVANCES TO PATIENTS THIS IS TRUE PARTICULARLY OF THE ROLE OF OUR TEACHING INSTITUTIONS WHERE SPECIALISTS IN TRAINING CONTRIBUTE TO BOTH SOPHISTICATED PATIENT CARE AND TO RESEARCH AND THE EDUCATION OF MEDICAL STUDENTS ANY EFFORT TO CHANGE THE MIX OF SPECIALISTS SHOULD BE DONE VERY CAREFULLY AND ONLY AFTER A STUDY OF THE NEEDS FOR THE VARIOUS MEDICAL DISCIPLINES A PROPOSAL THAT STATES A CONCLUSION REACHED WITHOUT SUCH ANALYSIS SHOULD BE SUSPECT IF ENACTED IT MIGHT QUICKLY DISMANTLE THE FINEST HEALTH CARE SYSTEM IN THE WORLD 9310210134 931021 FINANCING BUSINESS GENTRA INC GENTRA INC TORONTO SAID HOLDERS OF 245 MILLION CANADIAN DOLLARS US1849 MILLION ORIGINAL VALUE OF ITS PREFERRED SHARES HAVE ELECTED TO CONVERT THEIR HOLDINGS INTO C92 MILLION PRINCIPAL AMOUNT OF JUNIOR SUBORDINATED DEBT THE CONVERSION IS PART OF GENTRA'S PLAN TO SELL THE BULK OF ITS ASSETS AND OPERATIONS TO THE ROYAL BANK OF CANADA GENTRA SAID THE PREFERRED SHAREHOLDERS WILL RECEIVE C10 OF JUNIOR DEBT FOR EACH C25 OF ORIGINAL ISSUE PRICE CUMULATIVE PREFERRED SHARES HOLDERS OF NONCUMULATIVE PREFERRED SHARES WILL RECEIVE C7 OF DEBT FOR EACH C25 OF ORIGINAL ISSUE PRICE PREFERRED SHARES THE DEBT WILL FALL DUE DEC 31 2001 GENTRA FORMERLY CALLED ROYAL TRUSTCO LTD COMPLETED THE SALE OF ITS FINANCIAL SERVICES ASSETS TO ROYAL BANK OF CANADA LAST SUMMER AND RETAINS ONLY A PORTFOLIO OF LOANS 9310210133 931021 NL INDUSTRIES INC SELLS NOTES HOUSTON NL INDUSTRIES INC SAID IT COMPLETED THE SALE OF 350 MILLION IN NOTES THE CHEMICAL CONCERN SAID IT SOLD 250 MILLION IN 11 3/4 SENIOR SECURED NOTES DUE 2003 AND 100 MILLION IN 13 SENIOR SECURED DISCOUNT NOTES DUE 2005 PROCEEDS WILL BE USED TO PAY BANK DEBT AND TO REDEEM ITS 7 1/2 SINKING FUND DEBENTURES 9310210132 931021 ADVANCED FINANCIAL INC UNIT SHAWNEE KAN ADVANCED FINANCIAL INC SAID ITS CONTINENTAL MORTGAGE INC UNIT BOUGHT A 130 MILLION SERVICING PORTFOLIO THE MORTGAGE LOAN CONCERN DIDN'T DISCLOSE THE SELLER THE COMPANY SAID THAT IT EXPECTS THE SERVICING TO BE APPROVED FOR TRANSFER DEC 1 ADDING THAT WOULD BRING ITS TOTAL SERVICING PORTFOLIO TO 13000 LOANS WITH A PRINCIPAL BALANCE OF 550 MILLION 9310210131 931021 TECHNOLOGY & HEALTH MICROSOFT'S QUARTERLY NET ROSE 14 A SIGN THAT GROWTH MAY HAVE PEAKED BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP'S NET INCOME FOR ITS FISCAL FIRST QUARTER ROSE 14 A STEADY BUT UNSPECTACULAR PERFORMANCE THAT MAY SIGNAL THAT THE SOFTWARE COMPANY'S LONG ERA OF TORRID GROWTH IS WINDING DOWN MICROSOFT REPORTED NET INCOME OF 239 MILLION OR 79 CENTS A SHARE IN THE PERIOD ENDED SEPT 30 COMPARED WITH 209 MILLION OR 70 CENTS A SHARE A YEAR EARLIER THE RESULTS WERE SLIGHTLY BETTER THAN MOST ANALYSTS' EARNINGS ESTIMATES OF ABOUT 78 CENTS A SHARE REVENUE ROSE 20 TO 983 MILLION FROM 818 MILLION A YEAR EARLIER MICROSOFT MAINTAINED HEALTHY PROFIT MARGINS OF JUST OVER 24 INDICATING THAT IT CONTINUES TO WEATHER PRICE PRESSURE BETTER THAN MOST OF ITS RIVALS THOUGH THE QUARTER WAS SOLID IT MARKED A SLIP FOR MICROSOFT WHICH HAD CUSTOMARILY WRACKED UP QUARTERLY EARNINGS GROWTH OF 25 TO 55 FOR SEVERAL YEARS INDEED FOR THE FIRST TIME IN MANY QUARTERS MICROSOFT'S QUARTERLY PROFIT SLIPPED SUBSTANTIALLY FROM THE PRECEDING QUARTER THE LATEST QUARTER'S PROFIT WAS 10 BELOW THE FISCAL FOURTHQUARTER NET INCOME OF 265 MILLION OR 87 CENTS A SHARE ANALYSTS SAY THE TREND REFLECTS PRINCIPALLY THAT MICROSOFT IS A MATURING COMPANY THAT IT HAS GROWN SO BIG THAT LARGEPERCENTAGE GROWTH SPURTS ARE TOUGHER TO ACHIEVE AND THAT RIVALS SUCH AS APPLE COMPUTER INC'S CLARIS CORP UNIT LOTUS DEVELOPMENT CORP AND OTHERS ARE HAVING SOME SUCCESS IN NIBBLING AWAY AT MICROSOFT'S BUSINESS THAT SUGGESTS THAT WHILE MICROSOFT REMAINS A JUGGERNAUT IT'S NOT THE UNCHALLENGED MASTER OF ITS MARKETS THAT IT ONCE WAS IT'S NOT A SIGN OF WEAKNESS SAYS DAVID READERMAN AN ANALYST WITH LEHMAN BROTHERS MICROSOFT IS JUST A MATURING COMPANY NOBODY CAN SUSTAIN HUGE GROWTH RATES FOREVER THE RESULTS WERE RELEASED AFTER THE CLOSE OF TRADING YESTERDAY IN OVERTHECOUNTER TRADING MICROSOFT SHARES CLOSED AT 81 UP 75 CENTS ANALYSTS HAD MIXED VIEWS ON HOW WALL STREET WOULD REACT TO THE EARNINGS WHEN MICROSOFT OPENS FOR TRADING TODAY WHILE SOME EXPECTED THE MARKET TO READ THE RESULTS AS A SIGN OF CONTINUED STRENGTH AT THE COMPANY OTHERS PREDICTED THAT THE RELATIVELY MODEST PROFIT GROWTH MAY MAKE SOME INVESTORS NERVOUS ABOUT MICROSOFT'S FUTURE EARNINGS POTENTIAL LEHMAN'S MR READERMAN HOWEVER SAID HE DOESN'T EXPECT ANY REALLY SIGNIFICANT MOVEMENT IN THE STOCK ONE WAY OR THE OTHER ONE KEY FOR MICROSOFT'S FUTURE WILL BE ITS ABILITY TO SHOULDER ITS WAY INTO THE EMERGING YET POORLY DEFINED MARKETS GROWING OUT OF THE CURRENT FERMENT OVER INTERACTIVITY AND MULTIMEDIA COMPUTING THAT INVOLVES THE LINKAGE OF CABLE TELEVISION PHONE LINES AND PERSONAL COMPUTERS FEATURING SOUND AND VIDEO INTO A SINGLE SYSTEM THAT ALLOWS HOME COMPUTER OWNERS TO USE THEIR MACHINES FOR LEARNING ENTERTAINMENT AND SHOPPING AMONG OTHER THINGS MICROSOFT BASED IN REDMOND WASH HAS BEEN IN TALKS WITH TIME WARNER INC TELECOMMUNICATIONS INC AND OTHERS ABOUT POSSIBLE ALLIANCES TO HELP DEFINE AND CAPTURE SOME OF THOSE MARKETS AND IT HAS STEPPED UP ITS EFFORTS AT DEVELOPING SOCALLED CONTENT EDUCATIONAL AND INFORMATION PROGRAMS FEATURING SOUND AND HIGHGRADE GRAPHICS THAT WILL RUN ON MULTIMEDIA PCS ITS EFFORTS SO FAR HAVE RECEIVED MIXED REVIEWS HOWEVER 9310210130 931021 WHO'S NEWS SONOCO PRODUCTS CO SONOCO PRODUCTS CO HARTSVILLE SC LEO BENATAR WAS NAMED A DIRECTOR OF THIS MAKER OF PACKAGING PRODUCTS MR BENATAR AGE 63 IS CHAIRMAN AND CHIEF EXECUTIVE OF ENGRAPH INC A PACKAGING COMPANY IN ATLANTA IN SEPTEMBER SONOCO AGREED TO ACQUIRE ENGRAPH IN A TRANSACTION VALUED AT ABOUT 300 MILLION MR BENATAR WHO FILLS A VACANT POSITION ON THE BOARD WAS ALSO ELECTED A CORPORATE OFFICER 9310210129 931021 WHO'S NEWS ICF KAISER INTERNATIONAL INC ICF KAISER INTERNATIONAL INC FAIRFAX VA MARC TIPERMAS 45 YEARS OLD WAS ELECTED A DIRECTOR OF THIS ENGINEERING CONSTRUCTION AND CONSULTING SERVICES COMPANY INCREASING THE BOARD TO NINE MEMBERS MR TIPERMAS IS EXECUTIVE VICE PRESIDENT AND DIRECTOR OF CORPORATE DEVELOPMENT FOR THE COMPANY 9310210128 931021 WHO'S NEWS AMERICAN OIL & GAS CORP AMERICAN OIL & GAS CORP HOUSTON WILLIAM P CONNER 52YEAROLD FORMER SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS ENERGY COMPANY WAS NAMED EXECUTIVE VICE PRESIDENT A NEWLY CREATED POSITION THOMAS H FANNING 45 FORMERLY VICE PRESIDENT CHIEF ACCOUNTING OFFICER AND CONTROLLER SUCCEEDS HIM 9310210127 931021 WHO'S NEWS FIDELITY INVESTMENTS FIDELITY INVESTMENTS BOSTON LAWRENCE BOWMAN MANAGER OF FIDELITY'S EMERGING GROWTH FUND HAS LEFT THE MUTUAL FUND FIRM FOR TIGER MANAGEMENT CORP A NEW YORK HEDGE FUND MR BOWMAN THE SECOND FIDELITY FUND MANAGER TO LEAVE FOR TIGER THIS YEAR MANAGED THE 673 MILLION STOCK FUND TO A 1695 RETURN IN THE YEARTODATE SLIGHTLY ABOVE AVERAGE FOR FIDELITY FUNDS IN 1993 MR BOWMAN 34 IS SUCCEEDED BY LAWRENCE GREENBERG 30 WHO HAS MANAGED FIDELITY'S 13 BILLION ASSET VIP GROWTH PORTFOLIO TO A 19 RETURN YEARTODATE 9310210126 931021 SMALL STOCK FOCUS SELLOFF CONTINUES TO PUSH DOWN PRICES IN SESSION DOMINATED BY EARNINGS NEWS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SELLERS PUSHED PRICES DOWNHILL AGAIN IN A SESSION DOMINATED BY EARNINGS NEWS STOCKS BEGAN THE SESSION SLIGHTLY HIGHER BUT SOON FELL PREY TO MILD PROFITTAKING IN A FOLLOWTHROUGH TO TUESDAY'S ABRUPT DROP THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED OVER THE COUNTER AND ON THE MAJOR EXCHANGES LOST 093 POINT OR 036 TO FINISH AT 25502 THE INDEX HAS LOST 191 SINCE THE 25998 RECORD REACHED FRIDAY NASDAQ STOCKS AS MEASURED BY THE NASDAQ COMPOSITE INDEX ALSO DIPPED THE BAROMETER TRADED IN A NARROW RANGE AND ENDED 046 POINT OR 006 AT 76825 THE INDEX HAS FALLEN 243 SINCE FRIDAY'S RECORD CLOSE OF 78742 DECLINERS OUTPACED ADVANCING NASDAQ ISSUES 1580 TO 1382 NASDAQ NATIONAL MARKET VOLUME WAS AT 282713300 SHARES AND TOTAL NASDAQ VOLUME HIT 336906000 SHARES TUESDAY VOLUME REGISTERED 319470400 SHARES WITH THE NASDAQ TOTAL AT 378723100 SHARES THERE'S NERVOUSNESS STILL AFTER SOME PANIC SELLING TUESDAY SAID PATRICK DAVIS MANAGER OF OVERTHECOUNTER TRADING AT SALOMON BROTHERS INC BUT IT LOOKS LIKE A LOT OF THE SELLING HAS BEEN WASHED OUT AT LEAST FOR NOW YESTERDAY'S ACTION WAS JUST PLAIN SLOPPY SAID ARNOLD OWEN MANAGING DIRECTOR OF TRADING AT SOUNDVIEW FINANCIAL CORP BUT HE SAID HE WAS ENCOURAGED THAT THIS MORNING NOTHING GOT CARRIED AWAY TOO FAR TOO SOON IN THE END MR OWEN ADDED THE TECHNICAL DAMAGE DONE YESTERDAY CONTINUED TODAY MR OWEN SAID WALL STREET STILL WORRIES ABOUT CORPORATE PROFIT REPORTS DUE TO CONCERNS OVER THE ECONOMY PRESIDENT CLINTON'S HEALTHCARE PLAN THE IMPACT OF HIGHER TAXES AND CONTINUED LOW INTEREST RATES RIGHT NOW THINGS ARE CHUGGING ALONG HE SAID EARNINGS ARE GOOD RIGHT NOW BUT WHAT'S GOING TO HAPPEN TO THE FUTURE EARNINGS STREAM MICROSOFT'S RELEASE OF FISCAL FIRSTQUARTER RESULTS AFTER YESTERDAY'S CLOSE COULD AFFECT SMALLER TECHNOLOGY STOCKS TODAY OBSERVERS SAID THE BIG SOFTWARE COMPANY SAID EARNINGS ROSE TO 79 CENTS A SHARE FROM 70 CENTS A YEAR EARLIER ANALYSTS HAD LOOKED FOR A PROFIT OF ABOUT 78 CENTS A SHARE MS CARRIERS LOST 1 3/4 TO 24 3/4 THE MEMPHIS TENN TRANSPORTER'S THIRDQUARTER EARNINGS CAME IN AT 30 CENTS A SHARE ON MORE SHARES BELOW ANALYSTS' ESTIMATES OF 32 CENTS A YEAR EARLIER THE COMPANY EARNED 28 CENTS BROADWAY & SEYMOUR DECLINED 2 3/4 TO 8 1/4 THE CHARLOTTE NC PROVIDER OF INFORMATION TECHNOLOGY SAID IT EXPECTS ITS FISCAL THIRDQUARTER EARNINGS TO BE BREAKEVEN TO A LOSS OF 10 CENTS A SHARE COMPARED WITH PROFIT OF 18 CENTS A SHARE A YEAR EARLIER ERO FELL 3/4 TO 6 1/2 THE MARKETER OF CONSUMER LEISURE PRODUCTS BASED IN MOUNT PROSPECT ILL POSTED THIRDQUARTER NET OF FOUR CENTS A SHARE BELOW THE 18 CENTS REPORTED A YEAR AGO SIERRA SEMICONDUCTOR SAN JOSE CALIF DROPPED 3/4 TO 7 1/4 FOLLOWING ITS REPORT OF A THIRDQUARTER LOSS OF 150 A SHARE ON CHARGES IT HAD PROFIT OF 19 CENTS A SHARE A YEAR EARLIER MEDIA VISION FREMONT CALIF MOVED UP 2 1/8 TO 33 1/2 AFTER SAYING LATE TUESDAY THAT THIRDQUARTER EARNINGS IMPROVED TO 36 CENTS A SHARE FROM THE YEAREARLIER THREE CENTS THE COMPANY DESIGNS MULTIMEDIA COMPUTING PRODUCTS JOSEPHTHAL LYON & ROSS PUT AN INITIAL BUY ON ITS STOCK ETHAN ALLEN INTERIORS NYSE OF DANBURY CONN ROSE 2 7/8 TO 24 1/8 THE HOMEFURNISHINGS CONCERN RELEASED IMPROVED FISCAL FIRSTQUARTER EARNINGS OF 29 CENTS A SHARE UP FROM 19 CENTS A YEAR EARLIER ALSO ON THE BIG BOARD INTERNATIONAL RECTIFIER OF EL SEGUNDO CALIF CLIMBED 1 7/8 TO 12 3/8 THE POWER SEMICONDUCTOR PRODUCTS CONCERN POSTED NET OF 10 CENTS A SHARE IT HAD A LOSS OF NINE CENTS A YEAR EARLIER ANALYSTS HAD EXPECTED THE COMPANY TO EARN SIX CENTS IN THE LATEST QUARTER NEW ISSUE DAVEL COMMUNICATIONS GROUP LEAPED TO 16 3/4 FROM ITS INITIAL PRICE OF 13 A SHARE LATE TUESDAY THE INDEPENDENT OPERATOR OF PAY TELEPHONES PLANS TO USE PROCEEDS TO REDUCE DEBT FUND THE INSTALLMENT OF ADDITIONAL PAY PHONES AND FOR WORKING CAPITAL SPECTRUM INFORMATION TECHNOLOGIES HIT THE TOP OF THE NASDAQ'S MOSTACTIVE LIST FOR THE THIRD STRAIGHT DAY ON VOLUME OF 93 MILLION SHARES UP FROM AVERAGE DAILY VOLUME OF 28 MILLION SHARES THE MANHASSET NY WIRELESS DATATRANSMISSION TECHNOLOGY CONCERN RALLIED 1 TO 10 1/2 AFTER DROPPING 1 5/8 TUESDAY A WERTHEIM SCHRODER UPGRADE TO MODERATE OUTPERFORMER FROM NEUTRAL TOOK BORDEN CHEMICALS & PLASTICS 1 HIGHER TO 9 3/8 ON THE BIG BOARD A RESEARCHER AT THE BROKERAGE FIRM SAID THE CHANGE REFLECTS THE PERCEPTION THAT THE COMPANY'S WORST PROBLEMS ARE BEHIND IT POSITIVE COMMENTS BY ALEX BROWN & SONS ANALYST ROBERT BUCHANAN LIFTED BONTON STORES' SHARE PRICE BY 1 TO 8 BUCHANAN VIEWS THE STOCK'S VALUATION AS COMPELLING AND HE REPEATED HIS BUY RATING ON THE YORK PA OWNER AND OPERATOR OF DEPARTMENT STORES NASDAQ NATIONAL MARKET STOCKS THAT HAVE HIT NEW HIGHS FOR THE YEAR TOTAL 90 WHILE 24 ISSUES HAVE HIT NEW LOWS 9310210125 931021 THE KLAN'S AD STATES ITS BELIEFS PROCEEDS GO TO THE NAACP PAPER'S PUBLISHER SAYS SOLUTION HONORS FREEDOM OF SPEECH AND HIS OWN CONSCIENCE BY KEN WELLS STAFF REPORTER OF THE WALL STREET JOURNAL LAFAYETTE LA WHEN ROGER HARRIS GRAND DRAGON OF THE BAYOU KNIGHTS OF THE KU KLUX KLAN READ THE TIMES OF ACADIANA LAST WEEK IT WAS ENOUGH TO TURN HIM WHITER THAN A SHEET HE LEARNED IN THE LOCAL WEEKLY THAT 900 OF THE KLAN'S MONEY HAD GONE TO THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE AND THE KLAN'S ARCHENEMY KLANWATCH IN TWANGY UNDERSTATEMENT MR HARRIS SAYS I HAVE TO SWALLOW HARD I REALLY DO IT MAY BE THE FIRST TIME IN HISTORY THIS HAS EVER HAPPENED SAYS JOE DENNIS VICE PRESIDENT OF THE NAACP'S LAFAYETTE CHAPTER BUT FRANKLY WE CAN USE THE MONEY THIS IS INDEED A STORY OF HOW THE KLAN UNWITTINGLY DONATED MONEY TO A BLACK SCHOLARSHIP FUND AND TO KLAN INVESTIGATORS HOW AN INDEPENDENT NEWSPAPER PUBLISHER STRUCK A MISCHIEVOUS BLOW FOR FREEDOM OF SPEECH HOW TRYING TO HONOR THE SPIRIT OF THE FIRST AMENDMENT OFTEN LEADS DOWN SOME PRETTY STRANGE PATHS IT'S ALSO ABOUT HOW THE KLAN IN TRYING TO PRETTIFY ITS RACIST VIOLENT IMAGE IS STILL OFTEN CAUGHT WITH ITS SHEETS SHOWING IN THE BEGINNING STEPHEN C MAY A LOUISIANA NATIVE USED TO SELL STEREOS BUT HE ALWAYS WANTED TO OWN A NEWSPAPER NOW HE HAS ONE HIS SECOND ACTUALLY THE TIMES A GENERALINTEREST WEEKLY SERVING THIS MODERATELY CONSERVATIVE CAJUN PRAIRIE TOWN OF ABOUT 100000 WITH A CIRCULATION OF 32500 THE PAPER MIXES INVESTIGATIVE REPORTING WITH A BROAD STREAK OF SOCIAL CONSCIOUSNESS THE MIX HAS MADE THE TABLOID BOTH PROFITABLE AND PROVOCATIVE NOT LONG AGO FOR EXAMPLE THE TIMES PUBLISHED A FIVEPAGE SPREAD ON THE STRAIN THAT PROLONGED RECESSION HAS HAD ON LOCAL RACE RELATIONS SO IT WASN'T SURPRISING THAT IN THE TIMES'S OCT 6 ISSUE RICHARD BAUDOUIN THE TIMES'S EDITOR WROTE A COLUMN CHIDING LOCAL CHRISTIAN RIGHT GROUPS FOR THEIR EFFORTS TO FORCE THE NEW ABCTV SERIES NYPD BLUE OFF THE AIR ON LOCAL AFFILIATES TO PUT IT IN LOCAL PARLANCE THE PROTEST TURNED OUT TO BE SOMETHING OF A TEMPEST IN A GUMBO POT ONE STATION PULLED THE PROGRAM'S INITIAL EPISODE THEN THE WHOLE FLAP DIED AWAY THAT WOULD HAVE BEEN THAT EXCEPT THAT MR BAUDOUIN IN DECRYING EFFORTS AT CENSORSHIP BY OTHERS NOTED THAT THE TIMES PRACTICES WHAT IT PREACHES AMONG OTHER THINGS THE PAPER HAS LONG HAD A LIBERAL POLICY OF ACCEPTING POLITICAL ADVERTISEMENTS FOR GROUPS MAINSTREAM AND OTHERWISE WITH WHOM IT MAY NOT AGREE HE WROTE THAT'S WHEN THE KU KLUX KLAN CAME CALLING A MAN IDENTIFYING HIMSELF AS ROBERT MAGEE AND A LOCAL KLANSMAN STROLLED INTO THE PAPER'S COMPACT OFFICES DOWNTOWN HERE HOLDING A COPY OF MR BAUDOUIN'S COLUMN AND WANTING TO KNOW WHETHER THE PAPER ACTUALLY MEANT WHAT IT SAID MILDMANNERED DRESSED NEATLY HE INSISTED ON PLACING AN ADVERTISEMENT LAYING OUT THE PLATFORM CHAPTER FREE OF THE FLAGRANT RACIST EPITHETS OF THE OLD KLAN THE PROPOSED AD WAS FULL OF THE INNUENDO OF THE NEW THE WHITE RACE IS THE IRREPLACEABLE HUB OF OUR NATION THE AD STATED IT WENT ON TO LIST A NUMBER OF THINGS THE KLAN SUPPORTED AMONG THEM CREATING A THREETIERED SCHOOL SYSTEM WITH WHITE SCHOOLS BLACK SCHOOLS AND INTEGRATED SCHOOLS THUS ALLOWING FOR FREEDOM OF CHOICE THE AD WOULD TAKE UP ALMOST A WHOLE PAGE AND COST ABOUT 900 AN UNNERVED TIMES EMPLOYEE TOLD MR MAGEE HE PULLED OUT NINE 100 BILLS AND LAID THEM ON THE COUNTER HE ASKED FOR A RECEIPT AND WALKED OUT IT'S THE CLASSIC DILEMMA FOR ANY NEWSPAPER SAYS THE TACITURN 45YEAROLD MR MAY WHO HAD JUST RETURNED FROM VACATION AND LEARNED OF MR MAGEE'S REQUEST ONLY A DAY BEFORE THE TIMES'S PUBLICATION DEADLINE LAST WEEK BY ACCEPTING THE AD THE TIMES RISKED OFFENDING ITS READERS AND MANY OF ITS STAFFERS WITH THIS CLEVERLY TONEDDOWN GARBAGE MR MAY SAYS ON THE OTHER HAND HE SAYS THE PAPER'S PUBLIC STATEMENTS REPUGNANCE TO THE KLAN ASIDE WOULD HAVE MADE IT HYPOCRITICAL NOT TO TAKE IT WE WOULD HAVE DRAWN THE LINE AT RACIAL SLURS AND EPITHETS HE ADDS BUT IN THE END WE CAME DOWN ON THE RIGHT TO KNOW THE IDEA THAT IT'S BETTER TO SHINE A LIGHT ON THESE COCKROACHES THAN TO PRETEND THAT THEY'RE NOT THERE STILL MR MAY FELT TERRIBLE ABOUT TAKING THE KLAN'S MONEY THEN DRIVING TO WORK AND PUZZLING OVER THE PROBLEM IT HIT HIM WE'LL OFFER THE MONEY TO THE NAACP TALKING IT OVER WITH MR BAUDOUIN HIS EDITOR THEY DECIDED TO INCLUDE KLANWATCH THE INVESTIGATIVE ARM OF THE SOUTHERN POVERTY LAW CENTER A BIRMINGHAM ALA ORGANIZATION THAT TRACKS WHITE SUPREMACIST GROUPS AND SUPPLIES INTELLIGENCE TO POLICE AGENCIES NATIONWIDE OF COURSE THERE WAS NO GUARANTEE THAT EITHER GROUP WOULD TAKE THE MONEY WHEN WE FIRST HEARD THE OFFER IT WAS SHOCKING IN A WAY SAYS THE NAACP'S MR DENNIS BUT THE MORE THE GROUP DELIBERATED THE MORE IT CAME TO THE CONCLUSION THAT IT WAS A GREAT IDEA HE ADDS HE CHARACTERIZES RACE RELATIONS HERE AS GENERALLY NOT BAD BUT THERE ARE CHRONIC PROBLEMS INCLUDING THE PRESENCE OF SMALL BUT ACTIVE HATE GROUPS LIKE THE KLAN AND THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF WHITE PEOPLE THAT REQUIRE CONSTANT MONITORING MONEY IS A NAGGING PROBLEM THE LOCAL NAACP AFFILIATE WITH ABOUT 1200 MEMBERS HAD ALL BUT EXHAUSTED ITS COFFERS IN A RECENT SUCCESSFUL EFFORT TO END ALLEGED HOUSING DISCRIMINATION ON A LOCAL COLLEGE CAMPUS MR DENNIS ADDS SO UNTIL MR MAY OFFERED THE KLAN'S MONEY OUR SCHOLARSHIP FUND WAS COMPLETELY BROKE EDWARD ASHWORTH SPEAKING FOR KLANWATCH SAYS HIS ORGANIZATION WAS ALSO DELIGHTED TO SPLIT THE KLAN WINDFALL WITH THE NAACP WE DIDN'T LIKE THE AD BUT WE LIKE THE OUTCOME SAYS MR ASHWORTH THUS IT WAS THAT LAST WEEK THE TIMES RAN THE KKK'S AD UNEDITED EXCEPT FOR THE REMOVAL OF TWO CARTOONISH INSIGNIAS DEPICTING MEN IN WHITE HOODS ON A SEPARATE PAGE WAS A SIGNED EDITORIAL BY MR MAY AND HIS WIFE CHERRY FISHER MAY THE PAPER'S COPUBLISHER EXPLAINING HOW THE PAPER REACHED ITS DECISION AND WHERE THE MONEY WENT ALMOST IMMEDIATELY THE PHONES STARTED RINGING AT LEAST TWO OF THE CALLERS ISSUED ANONYMOUS THREATS ONE OF THEM TO BURN DOWN THE NEWSPAPER'S BUILDING SAYS MR MAY THE CALLS COULD HAVE BEEN PRANKS HE ADDS BUT HE HAS NONETHELESS TURNED THEM OVER TO THE LAFAYETTE POLICE DEPARTMENT NOW WHY ON EARTH WOULD I WANT TO BURN DOWN THAT PLACE SAYS THE GRAND DRAGON MR HARRIS REACHED BY PHONE IN CHOUDRANT LA A SMALL TOWN ABOUT 150 MILES NORTH OF HERE MR MAGEE THE KLAN GRAND TITAN WHO PLACED THE AD DECLINED TO COMMENT REFERRING CALLS TO MR HARRIS THOUGH THE DONATION OF THE KLAN'S MONEY TO THE NAACP AND KLANWATCH WAS GALLING MR HARRIS INSISTS THAT MERELY GETTING THE AD IN THE PAPER WAS A TRIUMPH HE CHARACTERIZES THE MODERN KLAN AS MAINSTREAM AND A GROUP WITH ITS OWN CROSSES TO BEAR LOCAL KLANSMEN FOR EXAMPLE PREFER TO PLACE NEWSPAPER ADVERTISEMENTS BECAUSE THEY'VE FOUND OTHER METHODS OF COMMUNICATING HAZARDOUS WE USED TO PASS OUT LEAFLETS BUT HELL IT'S DANGEROUS TO STAND OUT ON THE SIDE OF THE ROAD WE'VE BEEN SHOT AT HE SAYS MAINSTREAM AVOWALS NOTWITHSTANDING MR HARRIS WILL ONLY PART WITH THE ABOVE INFORMATION AFTER POSING PREINTERVIEW QUESTIONS TO A JOURNALIST ARE YOU WHITE AND ARE YOU CHRISTIAN BECAUSE IF YOU'RE BLACK OR JEWISH IT WOULD BE LIKE ULYSSES S GRANT TRYING TO INTERVIEW ROBERT E LEE SOME OF MR HARRIS'S KLAN COMPATRIOTS MEANWHILE DON'T SEEM TO SHARE HIS SENSE OF TRIUMPH IN A LETTER TO MR MAY RECEIVED YESTERDAY A WELLKNOWN LOCAL KLANSMAN DARRELL FLINN CALLED MR MAY WHO IS WHITE A RACE TRAITOR HE ACCUSED HIM OF DONATING THE KLAN'S HARDEARNED MONEY TO THE RADICAL NAACP AND ZIONIST OWNED KLANWATCH TO COVER UP YOUR GREED ALL OF WHICH MAKES MARY LOU CAMPBELL A TELEMARKETING SALESWOMAN FOR A SISTER TIMES PUBLICATION THE DANDY DIME FEEL BETTER ABOUT THE WHOLE EPISODE TO MS CAMPBELL'S INITIAL DISMAY THE DIME ALSO CARRIED A SMALLER VERSION OF THE KLAN AD AS PART OF THE DEAL AS THE PERSON WHO HANDLED IT SHE IS IN LINE FOR A COMMISSION THIS PUT HER IN AN EXTREMELY AWKWARD POSITION SHE IS WHITE AND HER BOYFRIEND IS BLACK I COULDN'T BELIEVE WE WOULD RUN THIS AD SHE SAYS BUT THEN SHE TALKED TO HER BOYFRIEND WHO IN FACT THOUGHT IT WAS A TERRIFIC JOKE ON THE KLAN NOW I KNOW WHAT I'M GOING TO DO WITH MY KLAN COMMISSION MS CAMPBELL SAYS I'M GOING TO TAKE MY BLACK BOYFRIEND OUT TO DINNER 9310210124 931021 REGULATORS STUDY TEXAS SECURITIES FIRM AND ITS LOUISIANA PENSION FUND TRADES BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PAUL BROWN WHO DROPPED OUT OF THE EIGHTH GRADE LEFT BARTENDING TO BECOME A SALESMAN AT A HOUSTON INVESTMENT FIRM THAT SPECIALIZED IN BONDS THERE HE MET CORY MINER A FORMER LIQUOR WHOLESALER THE TWO MEN EVENTUALLY STRUCK OUT ON THEIR OWN AND BUILT A FORTUNE IN A RISKY CORNER OF THE BOND BUSINESS THAT WALL STREET DIDN'T EVEN WANT MR BROWN WAS ABLE TO BUY A 15000SQUAREFOOT HOUSE WITH INDOOR SWIMMING POOL AND SAUNA HIS PARTNER DABBLED IN A HALFDOZEN VENTURES FROM RAW LAND IN HOUSTON TO A NIGHTCLUB IN GALVESTON THEIR BUSINESS MONEY MANAGEMENT ANALYTICAL RESEARCH OR MMAR WAS ONE OF WALL STREET'S BESTKEPT SECRETS BUT THE CLOSELY HELD HOUSTON FIRM MAY NOT REMAIN A SECRET MUCH LONGER MMAR'S RELATIONSHIP WITH ITS LARGEST FORMER CLIENT THE LOUISIANA STATE PENSION FUND IS UNDER INVESTIGATION BY THAT STATE'S SECURITIES COMMISSIONER AND THE NATIONAL ASSOCIATION OF SECURITIES DEALERS BOTH ARE PROBING MMAR TO UNTANGLE WHETHER THE FIRM MISPRICED MORTGAGEBACKED SECURITIES IN AN EFFORT TO HIDE LOSSES AS HIGH AS 50 MILLION FROM THE PENSION PLAN THE NASD FILED A NOTICE OF A PENDING ACTION AGAINST THE FIRM AND MR BROWN ON OCT 4 ACCORDING TO PEOPLE FAMILIAR WITH THE INVESTIGATION THE NASD COMPLAINT ALLEGES THAT MMAR USED DECEPTIVE OR FRAUDULENT INFORMATION TO INDUCE LOUISIANA'S PENSION FUND TO BUY SECURITIES IN ORDER TO COLLECT COMMISSIONS AMONG TRADERS MMAR'S STYLE AND LINEAGE EARNED IT THE NICKNAME MAKE MONEY AND RUN MMAR AND A HANDFUL OF HOUSTONBASED BOND FIRMS DESCEND FROM THE BOND DADDY FIRMS OF MEMPHIS TENN AND LITTLE ROCK ARK WHICH BECAME NOTORIOUS IN THE 1970S AND EARLY 1980S FOR SELLING COMPLEX SECURITIES TO STATE AND LOCAL PENSION FUNDS AND FOR ENCOURAGING RAPIDFIRE TRADING TO GENERATE COMMISSIONS MMAR'S RECORD ILLUMINATES THE RISKS FOR INVESTORS DABBLING IN COLLATERALIZED MORTGAGE OBLIGATIONS OR CMOS THE BONDLIKE SECURITIES CREATED BY CARVING OUT VARIOUS CASH FLOWS FROM A POOL OF TRADITIONAL MORTGAGES MANY OF THESE ODD SECURITIES ARE SO COMPLEX THAT EACH IS UNIQUE AND THUS HARD TO VALUE OFTEN THE GAP BETWEEN WHAT BUYERS PAY AND SELLERS COLLECT IS SO WIDE THAT TRADERS CAN REAP COMMISSIONS ABOVE THE NASD'S SUGGESTED 5 LIMIT THE OPPORTUNITY TO BUILD MMAR INTO A POWERHOUSE CAME IN 1989 WHEN MR BROWN AND MR MINER REALIZED THEY COULD SELL BONDS THAT WALL STREET FIRMS WERE RELUCTANT TO SELL TO THEIR OWN CLIENTELE THESE BONDS CALLED INVERSE FLOATERS ARE LEVERAGED SECURITIES THAT ZIGZAG WILDLY IN PRICE WHEN INTEREST RATES FLUCTUATE ONLY MODESTLY FOR WALL STREET THE STAKES WERE HUGE THE SALE OF ENTIRE CMO DEALS HINGED ON SELLING THESE SECURITIES BY 1992 THE BULK OF WALL STREET'S INVERSE FLOATERS PASSED THROUGH MMAR'S HANDS THE FIRM'S REVENUES SOARED TO 61 MILLION IN 1991 AND 75 MILLION IN 1992 ACCORDING TO DOCUMENTS FILED WITH THE SS AND EXCHANGE COMMISSION MR MINER DENIES REVENUES WERE THAT HIGH MR MINER AND MR BROWN TOOK HOME 50 MILLION APIECE OVER THE PAST THREE YEARS SAY FORMER EMPLOYEES MR BROWN EVEN NAMED HIS SPEEDBOAT THE INVERSE FLOATER THE VENEER OF A SUCCESSFUL BUSINESS MASKED A FREEWHEELING ATMOSPHERE IN ONE YEAR THE FIRM RAN UP 2 MILLION IN LIMOUSINE BILLS ACCORDING TO RAPHAEL GRINBURG A FORMER EMPLOYEE WHO USED TO MONITOR TRAVEL EXPENSES FOR THE FIRM ONE NIGHT MR BROWN MR MINER AND TWO ASSOCIATES SPENT 8000 ENTERTAINING A GROUP OF JAPANESE BROKERS IN A HOUSTON TOPLESS BAR IN A FUTILE EFFORT TO SELL A STAKE IN MMAR SAYS ONE OF THOSE PRESENT MR MINER IN A WRITTEN RESPONSE TO QUESTIONS ADDRESSED TO BOTH MEN SAYS HE IS NOT AWARE OF THIS EVENT LITTLE OF THIS RAUCOUSNESS WAS VISIBLE TO OUTSIDERS WHAT THEY DID SEE MADE SOME NERVOUS TRADING BETWEEN ACCOUNTS BY MMAR'S SALESMEN WAS FAST AND FURIOUS ACCORDING TO WILLIAM ROBINSON WHO SUPERVISED MMAR WHEN THE FIRM CLEARED TRADES THROUGH RAYMOND JAMES A ST PETERSBURG FLA BROKERAGE FIRM THE FRENETIC TRADING PROMPTED RAYMOND JAMES TO TAKE THE UNUSUAL STEP OF ASSIGNING A TRADER TO TRACK MMAR'S COMPLEX DEALS RAYMOND JAMES BECAME SO CONCERNED ABOUT THE PACE OF MMAR'S TRADES THAT IT IMPOSED A 4 LIMIT ON COMMISSIONS ACCORDING TO MR ROBINSON MMAR SALESMEN VIOLATED THIS LIMIT PERIODICALLY PROMPTING HIM TO ADJUST THE TRADES SO THE LIMITS WERE MAINTAINED BECAUSE SALESMEN OFTEN MOVED THE BONDS BETWEEN ACCOUNTS EVERY TRADE WAS TWO TRADES SAYS ARTHUR S LEIDER AN EXEMPLOYEE NOW BEING SUED BY MMAR FOR HIS ROLE IN AN ILLFATED ACQUISITION MR MINER SAYS SUCH TRADES ARE STANDARD IN THE INDUSTRY AND THAT THE FIRM'S COMMISSIONS REMAINED WITHIN NASD GUIDELINES I SAW BONDS GO BACK AND FORTH BETWEEN CUSTOMERS SAYS MR ROBINSON FOR EXAMPLE HE SAYS MMAR WOULD BUY A BOND THAT HAD A 10POINT SPREAD BETWEEN THE BID AND OFFER PRICE AND SELL THE SAME BOND FIVE TIMES IN SUCCESSION LETTING EACH CUSTOMER MAKE ONE POINT AND TAKING FIVE POINTS FOR ITSELF BUT SAYS MR ROBINSON TO MY KNOWLEDGE THAT WAS NOT DONE TO DEFEAT THE MARKUP GUIDELINES IN 1992 THE FIRM MOVED ITS CLEARING TO DONALDSON LUFKIN & JENRETTE'S PERSHING & CO MR MINER AND MR BROWN KEPT MMAR'S CAPITAL POSITION TOO SMALL FOR THE FIRM TO HOLD BOND INVENTORIES SO THEY NEEDED A CLIENT WITH A LARGE CMO PORTFOLIO IN ORDER TO BE ABLE TO TRADE IN 1989 THEY FOUND VERNON STRICKLAND THE CHIEF INVESTMENT OFFICER OF THE LOUISIANA STATE EMPLOYEES RETIREMENT SYSTEM A 3 BILLION PENSION FUND OVER THE NEXT THREE YEARS MR STRICKLAND INVESTED EVER MORE IN MORTGAGE DERIVATIVES SOLD BY MMAR UNTIL THE FUND OWNED MORE THAN 500 MILLION OF SUCH SECURITIES STRICKLAND WAS INVALUABLE SAYS MR LEIDER THE FORMER MMAR SALESMAN HE WAS THEIR INVENTORY INDEED THE LOUISIANA RETIREMENT PLAN'S TRADING WAS SO BRISK THAT THE PORTFOLIO TURNED OVER FOUR TIMES A YEAR ACCORDING TO PAUL TROOP OF PENSION CONSULTANTS CALLAN ASSOCIATES WHO WORKED WITH MR STRILAND AS A RESULT OF SUCH TRADING SAYS MR LEIDER THE STATE PENSION FUND PAID COMMISSIONS OF 10 MILLION IN 1991 AND ANOTHER 18 MILLION IN 1992 TO MMAR MR MINER REFERS QUESTIONS ABOUT THE LOUISIANA RETIREMENT PLAN TO MR STRICKLAND WHO DECLINES TO COMMENT ALL THE TRADING IN INVERSE FLOATERS HELPED GENERATE HEADY 20 RETURNS FOR THE FUND BUT THOSE GAINS WERE OUTWEIGHED BY THE COMMISSIONS PAID AND BY LOSSES IN OTHER MORTGAGE SECURITIES ACCORDING TO SEVERAL PEOPLE FAMILIAR WITH THE ACCOUNT AT MMAR'S SUGGESTION SAY SEVERAL FORMER EMPLOYEES MR STRICKLAND LOADED UP ON IOS SECURITIES REPRESENTING INTERESTONLY PORTION OF MORTGAGE PAYMENTS EVENTUALLY INVESTING 25 OF THE PORTFOLIO IN THESE SECURITIES MR STRICKLAND BOUGHT THE SECURITIES FROM OTHER FIRMS AS WELL AS MMAR BUT HE RELIED ON MMAR TO VALUE THE IOS WHEN HOMEOWNERS RUSHED TO PREPAY THEIR MORTGAGES IN 1992 THESE SECURITIES BECAME AN INCREASINGLY DICEY PROPOSITION IOS DROPPED PRECIPITOUSLY IN VALUE BECAUSE THE UNDERLYING MORTGAGES WEREN'T STAYING IN EXISTENCE AS LONG AS EXPECTED FOR A TIME MMAR HID THE PORTFOLIO'S LOSSES BY MISMARKING THE IOS BY THREE POINTS OR MORE EQUAL TO AS MUCH AS 10 OF THE BONDS' MARKET VALUE ACCORDING TO ONE FORMER SALESMAN MR MINER DENIES THAT MISMARKING OCCURRED IN IN MIDSUMMER 1992 THE PENSION FUND BOARD BECAME WORRIED ABOUT THE ESOTERIC SECURITIES MR STRICKLAND WAS FORCED TO START SELLING THE BONDS SAYS CALLAN'S MR TROOP AND DISCOVERED THAT THE IOS HAD LOST AS MUCH AS HALF THEIR VALUE AS A RESULT OF THE LOUISIANA RETIREMENT PLAN'S LOSSES WHICH MAY RUN TO 50 MILLION THE NASD REQUESTED TRADING RECORDS FROM DOZENS OF WALL STREET FIRMS SAY PEOPLE FAMILIAR WITH THE INVESTIGATION IN THE END MMAR MAY BE HIT HARDEST NOT BY THE SECURITIES REGULATORS BUT BY MR MINER AND MR BROWN'S ILLFATED EXPANSION PLANS IN 1991 THEY BOUGHT NEW YORK'S FUNDAMENTAL BROKERS INC A GOVERNMENTBOND BROKER THAT FELL ON HARD TIMES WITHIN 15 MONTHS FUNDAMENTAL SOUGHT PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE MR MINER AND MR BROWN ARE NOW ENTANGLED IN A MORASS OF LITIGATION WITH THE LAWYERS WHO REPRESENTED THEM IN THE PURCHASE OF FUNDAMENTAL AND WITH FORMER EMPLOYEES THE SUITS FILED IN THE SOUTHERN DISTRICT OF NEW YORK AND THE SOUTHERN DISTRICT OF TEXAS ARE STILL PENDING MORE LAWSUITS ARE EXPECTED 9310210123 931006 CORPORATIONS TEN COMPANIES ARE TARGETED FOR ACTION BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON COMPANIES WITH POOR EARNINGS POISON PILLS AND HIGH EXECUTIVE PAY ARE ONCE AGAIN BEING TARGETED BY SHAREHOLDER GROUPS BUT THIS YEAR SOME INSTITUTIONAL INVESTORS ARE CHANGING THEIR TACTICS AFTER SCORING SOME SUCCESSES AND WINNING NEW BARGAINING POWER FROM THE SECURITIES AND EXCHANGE COMMISSION BIG STOCKHOLDERS SAY THEY'RE GETTING MORE RESPECT FROM THE COMPANIES WHOSE SHARES THEY HOLD AS A RESULT SEVERAL BIG PENSION FUNDS HAVE BEGUN NEGOTIATING CHANGES WITH TARGETED COMPANIES BEFORE CRITICIZING THEM PUBLICLY TAKING ISSUES TO ALL SHAREHOLDERS VIA BALLOT HAS FALLEN FROM FAVOR AS WELL THE VAST MAJORITY OF THE REALLY IMPORTANT ISSUES WILL BE DEALT WITH BEHIND THE SCENES SAYS SARAH TESLIK EXECUTIVE DIRECTOR OF THE COUNCIL OF INSTITUTIONAL INVESTORS WHICH REPRESENTS MANY BIG HOLDERS IN SOME CASES THE COMPANIES THEMSELVES HAVE INITIATED DISCUSSIONS WITH INSTITUTIONAL HOLDERS OVER SUCH ISSUES AS HOW MANY INDEPENDENT DIRECTORS SIT ON THE BOARD OR POISONPILL DEFENSES THAT MAY HARM SHAREHOLDER INTERESTS THEY'RE ASKING US FOR DIRECTOR NOMINEES SAYS ROLAND MACHOLD DIRECTOR OF THE NEW JERSEY STATE INVESTMENT DIVISION COMPANIES' SOLICITOUSNESS HE NOTES TAKES THE PUNCH OUT OF OLD PRESSURE TACTICS SUCH AS DRUBBING A POOR PERFORMER IN THE PRESS IT'S HARD TO KICK SOMEONE WHEN THEY'RE LYING PROSTRATE HE SAYS THIS YEAR AS THE BIG SHAREHOLDER GROUPS COMPARE NOTES AND BEGIN TO HOME IN ON SPECIFIC TARGETS THEY'RE FINDING FEWER VILLAINS IN COMMON GONE FROM THE HIT LISTS ARE THE CORPORATE GIANTS OF LAST YEAR INCLUDING INTERNATIONAL BUSINESS MACHINES CORP WESTINGHOUSE ELECTRIC CORP SEARS ROEBUCK & CO AND AMERICAN EXPRESS CO MANY OF THEM COMPELLED BY SHAREHOLDERS AND INTERNAL PRESSURES HAVE ALREADY OVERHAULED THEIR EXECUTIVE SUITES AND BEGUN EXTENSIVE RESTRUCTURING PROGRAMS FOR THE FIRST TIME THE INSTITUTIONAL INVESTORS COUNCIL HAS COMMISSIONED ITS OWN LIST OF COMPANIES THAT FAIL TO MEET CERTAIN INVESTMENT CRITERIA PARTICULARLY IN EARNINGS THE GOAL IS TO PROVIDE GUIDANCE TO COUNCIL MEMBERS PARTICULARLY THOSE THAT CAN'T AFFORD THEIR OWN OUTSIDE ADVISERS CONNECTICUT STATE PENSION FUNDS HAVE ALREADY SENT LETTERS TO 10 OR 12 COMPANIES TO URGE CHANGES IT'S OK TO HAVE SOME INSIDERS ON THE BOARD BUT WE FEEL THE INSIDERS REALLY ARE BEHOLDEN TO MANAGEMENT SAYS MARYELLEN ANDERSEN DIRECTOR OF INVESTOR AND CORPORATE RELATIONS FOR THE CONNECTICUT STATE TREASURY BUT MS ANDERSEN WON'T DISCLOSE WHICH COMPANIES ARE ON CONNECTICUT'S LIST THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM WON'T PUBLICIZE ITS LIST EITHER SAYS GENERAL COUNSEL RICHARD KOPPES WE WANT TO NEGOTIATE WITH THE COMPANIES FIRST ISRAEL SHAREHOLDERS INCLUDING MEMBERS OF THE COUNCIL OF INSTITUTIONAL INVESTORS THE UNITED SHAREHOLDERS ASSOCIATION AND OTHERS TIMKEN CO AND EASTMAN KODAK CO HAVE NOT BEEN ACCUSED BY INSTITUTIONAL SHAREHOLDERS OF PARTICIPATION IN THE ARAB BOYCOTT OF ISRAEL A CHART WITH A MARKETPLACE ARTICLE OCT 6 INCORRECTLY INDICATED THE BOYCOTT ISSUE WAS AMONG THE REASONS THE INSTITUTIONS WERE BRINGING PRESSURE AGAINST THE TWO COMPANIES 9310210122 931021 INTERNATIONAL ITALY'S CIAMPI OUTLINES AMBITIOUS PLAN TO PRIVATIZE EIGHT COMPANIES BY 1995 BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL ITALIAN PRIME MINISTER CARLO CIAMPI OUTLINED AN AMBITIOUS CALENDAR FOR ITALY'S LONGSTALLED PRIVATIZATIONS AIMING TO SELL EIGHT STATE BANKS AND INDUSTRIAL COMPANIES BY EARLY 1995 IN A SPEECH TO THE SENATE MR CIAMPI CALLED THE PRIVATIZATION PROCESS IRREVERSIBLE AND FIRED A WARNING SHOT AGAINST RESISTANCE TO THE PLAN NO BLINDNESS CAN BE TOLERATED CONCERNING THE LONG POLITICAL INTERFERENCE IN THE ECONOMIC MANAGEMENT OF STATE COMPANIES HE SAID THE PRIME MINISTER CONFIRMED THAT 20 OF LONGTERM CREDIT BANK ISTITUTO MOBILIARE ITALIANO WOULD BE SOLD THROUGH AN INTERNATIONAL SHARE OFFERING IN ITALY AND NEW YORK IN FEBRUARY THE BANK HAS BEEN VALUED AT AROUND EIGHT TRILLION LIRE 5 BILLION IN RECENT MERCHANT BANK ESTIMATES S G WARBURG HAS BEEN NAMED GLOBAL COORDINATOR FOR THE PLACEMENT THE HOTLY DEBATED SALE OF BANCA COMMERCIALE ITALIANA WILL BE DONE THROUGH A PUBLIC SHARE OFFERING NEXT APRIL MR CIAMPI SAID WHILE THE GOVERNMENT'S STAKE IN STATE INSURANCE GROUP INA WILL BE SOLD IN JUNE FURTHER SALES INCLUDING THOSE OF TELECOMMUNICATIONS GROUP STET OIL GROUP AGIP ELECTRICITY UTILITY ENEL AND THE ENERGY ACTIVITIES OF STATE ENERGY AND CHEMICALS GIANT ENTE NAZIONALE IDROCARBURI WILL BE COMPLETED IN THE SECOND HALF OF 1994 AND 1995 DEPENDING ON MARKET CONDITIONS HE SAID THE PRIVATIZATION ISSUE CAUSED ITALY'S INDUSTRY MINISTER PAOLO SAVONA TO RESIGN IN A HUFF EARLIER THIS MONTH AFTER BUTTING HEADS WITH ROMANO PRODI CHAIRMAN OF STATEOWNED INDUSTRIAL HOLDING COMPANY IRI MR PRODI FAVORS SALES TO INDIVIDUAL STOCKHOLDERS WHILE MR SAVONA WANTS TO SELL LARGE STAKES TO ITALIAN COMPANIES MR CIAMPI PERSUADED MR SAVONA TO STAY ON THE JOB BUT THE PROGRAM REMAINS A DELICATE TOPIC THE PRIME MINISTER REITERATED THAT THE GOVERNMENT WOULD USE VARIOUS METHODS TO PRIVATIZE INCLUDING PUBLIC SHARE OFFERINGS AND COMPETITIVE BIDDING RESPONDING TO THE IDEOLOGICAL DEBATE OVER HOW TO PRIVATIZE MR CIAMPI SAID THE GOVERNMENT WOULD FAVOR CREATION OF BOTH PUBLICLY TRADED COMPANIES WITH BROAD SHAREHOLDER BASES AND THE ALTERNATIVE OPTION OF PUBLIC SHARE OFFERINGS WHERE A CORE OF LARGE INVESTORS BUYS A CONTROLLING INTEREST A CORE OF LARGE INVESTORS HE SAID WOULD HELP ENSURE THE STABILITY OF SOLDOFF COMPANIES HE ADDED HOWEVER THAT A CORE STAKE SHOULD FETCH A PREMIUM PRICE MR CIAMPI SAID THE 3 OWNERSHIP CEILING PLACED ON THE PUBLIC SHARE OFFERINGS OF BANCA COMMERCIALE ITALIANO AND CREDITO ITALIANO ANOTHER BANK EARMARKED FOR PRIVATIZATION DOESN'T PRECLUDE FORMATION OF A CORE OF CONTROLLING INVESTORS HE SAID THE GOVERNMENT HAS ALREADY TAKEN SPECIAL MEASURES TO PROTECT NATIONAL INTERESTS SUCH AS DEFENSE TRANSPORTATION ENERGY AND TELECOMMUNICATIONS GIVING THE TREASURY VETO POWER FOR A LIMITED PERIOD ON NEW OWNERS' ATTEMPTS TO DISMANTLE OR RADICALLY MODIFY THOSE COMPANIES 9310210121 931021 WHO'S NEWS IBP INC IBP INC DAKOTA CITY NEB JO ANN DOKE SMITH 54 YEARS OLD A FORMER ASSISTANT SECRETARY IN THE DEPARTMENT OF AGRICULTURE AND FORMER PRESIDENT OF THE NATIONAL CATTLEMEN'S ASSOCIATION WAS ELECTED A DIRECTOR OF THIS MEATPACKER INCREASING BOARD MEMBERSHIP TO EIGHT 9310210120 931021 RENO URGES TV VIOLENCE BE CUT BY INDUSTRY OR LAWS WASHINGTON ATTORNEY GENERAL JANET RENO TOLD LAWMAKERS THAT THE TELEVISION INDUSTRY SHOULD GET ANOTHER CHANCE TO CURB VIOLENT PROGRAMMING BEFORE CONGRESS STEPS IN AND SLAPS RESTRICTIONS ON THE BROADCASTERS THE BEST SOLUTIONS LIE WITH INDUSTRY OFFICIALS PARENTS AND EDUCATORS AND I DON'T RELISH THE PROSPECT OF GOVERNMENT ACTION SHE SAID AT A SENATE COMMITTEE HEARING YESTERDAY IF VOLUNTARY STEPS AREN'T TAKEN SHE WARNED THE GOVERNMENT MUST RESPOND AND RESPOND IMMEDIATELY BOTH THE HOUSE AND THE SENATE ALREADY ARE CONSIDERING LEGISLATION AIMED AT CONTROLLING TV VIOLENCE ESPECIALLY IN PROGRAMMING AND TIME SLOTS MOST VIEWED BY CHILDREN INDUSTRY OFFICIALS FROM THE NETWORKS AND CABLE TV YESTERDAY TOLD THE SENATE COMMERCE SCIENCE AND TRANSPORTATION COMMITTEE THAT THEY WANT TO BE PART OF THE SOLUTION UNDER PREVIOUS LEGISLATION THE INDUSTRY RECEIVED A THREEYEAR EXEMPTION FROM ANTITRUST LAWS SO THAT IT COULD WORK TOGETHER TO REGULATE VIOLENCE IN PROGRAMMING SEN PAUL SIMON D ILL WHO HAD SPONSORED THE ANTITRUST EXEMPTION BILL SAID THE INDUSTRY SHOULD HAVE UNTIL JANUARY ONE MONTH AFTER THE CURRENT LAW EXPIRES TO TAKE FURTHER MEASURES 9310210119 931021 YOUR MONEY MATTERS WALL STREET STRATEGISTS SMILE ON STOCKS FROWN ON BONDS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS YES BONDS NO THAT'S THE STANCE OF STRATEGISTS AT A DOZEN BIG BROKERAGE FIRMS WHOSE ADVICE IS TRACKED BY THE WALL STREET JOURNAL COLLECTIVELY THEY ARE RECOMMENDING THAT INVESTORS STUFF THEIR PORTFOLIOS WITH GENEROUS HELPINGS OF STOCKS THE AVERAGE STOCK ALLOCATION AT THE 12 FIRMS REGULARLY MONITORED BY THIS NEWSPAPER NOW STANDS AT 639 ONE OF THE HIGHEST LEVELS SINCE THE JOURNAL'S STUDY BEGAN IN JANUARY 1987 THE RECORD WAS 647 IN DECEMBER 1991 BUT AT A TIME WHEN STOCK PRICES ARE NEAR ALLTIME HIGHS THESE WALL STREET BULLS ARE MILDMANNERED IN THE EXTREME FEW OF THEM EXPECT GREAT THINGS FROM THE STOCK MARKET FOR THE MOST PART THEY LOOK ONLY FOR STOCKS TO OFFER HISTORICALLY NORMAL RETURNS OF ABOUT 8 TO 10 A YEAR STILL THEY THINK THAT'S FAR BETTER THAN THE LIKELY RETURNS ON BONDS OR CASH WHICH IS WALL STREET PARLANCE FOR SAFE SHORTTERM INVESTMENTS SUCH AS MONEYMARKET FUNDS OR TREASURY BILLS AS A GROUP THE STRATEGISTS ARE SUGGESTING THAT INVESTORS HAVE 239 OF THEIR PORTFOLIOS IN BONDS THE SMALLEST BONDMARKET ALLOCATION SINCE THIS NEWSPAPER STARTED SYSTEMATICALLY MONITORING THEIR ADVICE THE AVERAGE RECOMMENDED CASH ALLOCATION HAS STAYED FAIRLY STEADY FOR THE PAST YEAR AND NOW IS 122 CURRENTLY NONE OF THE 12 FIRMS RECOMMEND OTHER ASSETS SUCH AS GOLD OR REAL ESTATE SHOULD INDIVIDUAL INVESTORS RUN OUT AND DO AS THE STRATEGISTS ADVISE NOT NECESSARILY TO JUDGE BY THE RECORD WITH HELP FROM WILSHIRE ASSOCIATES OF SANTA MONICA CALIF AND ECONOMICS OFFICE OF HANOVER NH THE JOURNAL REGULARLY EVALUATES HOW AN INVESTOR WOULD HAVE DONE BY FOLLOWING EACH STRATEGIST'S ADVICE THE CONCLUSION A SIMPLE OLDFASHIONED STRATEGY OF MAINTAINING AN UNCHANGING BLEND OF 55 STOCKS 35 BONDS AND 10 CASH WOULD HAVE DONE AS WELL AS HALF THE BROKERAGEHOUSE STRATEGISTS OVER THE PAST FIVE YEARS ONLY 10 FIRMS WERE IN THE STUDY FOR THE WHOLE PERIOD TWO WERE ADDED MORE RECENTLY GREG SMITH OF PRUDENTIAL SECURITIES INC A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA HAS DONE BEST DURING THE FIVEYEAR STRETCH FOLLOWING HIS ADVICE WOULD HAVE PRODUCED AN ESTIMATED RETURN OF 937 FOR THE SAME PERIOD THE FIXED 553510 BLEND WOULD HAVE PROVIDED A RETURN OF 838 FOR THE MOST RECENT 12 MONTHS INVESTORS USING THE ADVICE OF KIDDER PEABODY & CO A UNIT OF GENERAL ELECTRIC CO AND PAINEWEBBER GROUP INC WOULD HAVE DONE BEST BOTH HAD AN ESTIMATED RETURN OF 126 COMPARED WITH 115 FOR THE FIXED BLEND ONLY FOUR OF THE DOZEN STRATEGISTS OUTPERFORMED THE FIXED BLEND AS FOR THE SEPTEMBER QUARTER FIVE OF THE STRATEGISTS EQUALED OR BEAT THE FIXED BLEND RAYMOND WORSECK OF AG EDWARDS INC DID BEST AT 29 BUT ALL 12 FIRMS WERE WITHIN 07 PERCENTAGE POINT OF ONE ANOTHER MR WORSECK OFTEN FAVORS BONDS AND BOND RETURNS EDGED OUT THOSE OF STOCKS IN THE QUARTER HERE ARE HIGHLIGHTS OF WHAT SOME WELLKNOWN STRATEGISTS ARE SAYING PRUDENTIAL SECURITIES MR SMITH KNOWN FOR MAKING BOLD BETS HAS CHOPPED HIS BOND ALLOCATION TO ZERO AND IS RECOMMENDING 80 IN STOCKS NOW THAT LONGTERM BOND YIELDS HAVE FALLEN BELOW 6 HE SAYS BONDS HAVE ALREADY DONE WHAT THEY SHOULD DO AND IF YOU PAY TAXES ON LESS THAN 6 IT'S STARTING TO NOT MAKE ANY SENSE AT ALL BUT STOCKS HE FIGURES SHOULD PROVIDE 8 TO 10 RETURNS FOR THE COMING 12 MONTHS PROFITS WILL SHOW UP PRETTY WELL EVEN IF THE ECONOMY ONLY MUDDLES ALONG BECAUSE COMPANIES ARE VERY FOCUSED ON COST CONTROL LEHMAN BROTHERS WHATEVER IS GOOD FOR THE BOND MARKET IS BETTER FOR THE STOCK MARKET SO LONG AS IT'S NOT A RECESSION OR A DEPRESSION SAYS ELAINE GARZARELLI STRATEGIST AT THE AMERICAN EXPRESS CO UNIT IT WILL JUST TAKE MAYBE A FEW MORE MONTHS AND THEN THE STOCK MARKET SHOULD BOOM BASED ON ESTIMATED 1994 EARNINGS SHE JUDGES STOCKS TO BE 23 UNDERVALUED SHE'S RECOMMENDING A 75 STOCK ALLOCATION KIDDER PEABODY EASTON RAGSDALE CHIEF QUANTITATIVE ANALYST ESTIMATES THAT STOCKS MAY PROVIDE AN 8 TO 9 RETURN IN THE COMING YEAR LESS THAN MANY INVESTORS HAVE GROWN USED TO PLENTY OF VALUATION MEASURES ARE PRETTY STEEP HE SAYS CITING THE MARKET'S LOW DIVIDEND YIELD AND HIGH PRICE/EARNINGS RATIO YOU CAN'T STRETCH THESE THINGS FOREVER STILL HE RECOMMENDS HAVING 70 IN STOCKS HIS BOND POSITION IS 30 BUT ONLY BECAUSE CASH INVESTMENTS ARE SO UNATTRACTIVE HE SAYS BONDS ARE THE LESSER OF TWO EVILS PAINEWEBBER WE'RE AT VIRTUALLY OUR LOWEST PERMISSIBLE BOND WEIGHTING SAYS STRATEGIST EDWARD KERSCHNER WHO IS RECOMMENDING A 22 BOND ALLOCATION IN HIS VIEW BOND YIELDS WOULD HAVE TO RISE BACK TO 7 OR SO BEFORE YOU'D WANT TO SELL STOCKS TO BUY BONDS RIGHT NOW HE'D HAVE 77 IN STOCKS THERE'S NOTHING WRONG WITH 8 TO 10 WHEN IT'S THE BEST GAME IN TOWN THAT'S THREE TIMES BETTER THAN THE MONEY MARKET AND AT LEAST 50 BETTER THAN WHAT YOU'VE GOT IN THE BOND MARKET GOLDMAN SACHS STEVEN EINHORN AND ABBY COHEN COSTRATEGISTS AT GOLDMAN SACHS & CO JUMPED TO 70 STOCKS FROM 60 LAST QUARTER AND SLICED BONDS TO 25 WE BELIEVE THAT FOR THE NEXT SIX MONTHS OR SO THE BULK OF THE DECLINE IN BOND YIELDS IS COMPLETE MR EINHORN SAYS REGARDING STOCKS OUR EXPECTATION WOULD BE ALONG THE LINES OF 12 OR EVEN A TOUCH MORE OVER THE NEXT 12 MONTHS MR EINHORN SAYS AND WE EXPECT A VERY LONGLASTING BULL FROM HERE AS INFLATION INTEREST RATES AND CORPORATE PROFITS STAY BENIGN AG EDWARDS PEOPLE WHO LISTENED TO MR WORSECK AND HIS COLLEAGUES HAVE BEEN DOING WELL LATELY AS THE BOND RALLY HAS ROLLED ON LONGER THAN MOST STRATEGISTS EXPECTED BUT EVEN MR WORSECK A FRIEND OF BONDS IF THERE EVER WAS ONE THINKS THE BOND MARKET IS DUE FOR A BREATHER ONE REASON IS THAT THE ECONOMY IS GETTING BETTER AND BOND INVESTORS PREFER A WEAK ECONOMY BECAUSE THAT KEEPS INTEREST RATES LOW HIS RECOMMENDATION 65 STOCKS 30 BONDS AND 5 CASH SALOMON BROTHERS A PESSIMIST IN THIS CROWD IS DAVID SHULMAN STRATEGIST AT THE SALOMON INC UNIT HE'S ADVISING PEOPLE TO COMMIT ONLY 45 OF THEIR FUNDS TO STOCKS AND TO CARRY A HEAVY DEFENSIVE SHIELD OF 25 CASH SO FAR THIS YEAR I'VE BEEN WRONG CONFESSES MR SHULMAN HE SAYS HE DOESN'T REGRET HAVING BEEN LIGHT IN STOCKS BUT I REGRET HAVING MISSED THE BOND RALLY NEVERTHELESS HE DOESN'T THINK THIS IS ANY TIME TO HOP ABOARD HE DOUBTS INTEREST RATES WILL FALL MUCH FURTHER AND PREDICTS PROFIT GROWTH WILL BE MUCH SLOWER THAN EVERYONE THINKS KEMPER SECURITIES RAO CHALASANI STRATEGIST AT THE KEMPER CORP SECURITIES ARM IS THE GROUP'S OTHER PESSIMIST HE RECOMMENDS AN EVEN BIGGER CASH POSITION 30 THAN MR SHULMAN BUT A SLIGHTLY BIGGER HELPING OF STOCKS 50 FOREIGN STOCKS ARE THE PLACE TO BE AND FOREIGN BONDS HE SAYS IN THE US HE SAYS THE STOCK MARKET IS FULLY PRICED AND INTEREST RATES WILL MORE LIKELY RISE THAN FALL 9310210118 931021 SETTLEMENT FOR 1988 BLAST AT SHELL OIL IS APPROVED NEW ORLEANS A FEDERAL JUDGE APPROVED A 160 MILLION SETTLEMENT OF A CLASS ACTION SUIT AGAINST SHELL OIL CO FOR THE 1988 EXPLOSION OF ITS NORCO LA REFINERY THAT KILLED SEVEN PEOPLE AFTER HOLDING A MONTHLONG HEARING JUDGE HENRY MENTZ SIGNED A FINAL JUDGMENT THAT THE SETTLEMENT WAS FAIR JOHN CUMMINGS CHIEF ATTORNEY FOR THE COMMITTEE REPRESENTING 17146 CLAIMANTS SAID A 60DAY WINDOW NOW OPENS FOR ANY APPEALS BARRING ANY CHANGES HE SAID MONEY COULD BEGIN TO BE DISBURSED BEFORE CHRISTMAS IN MARCH WHEN THE SETTLEMENT WAS REACHED SHELL THE HOUSTONBASED SUBSIDIARY OF ROYAL DUTCH/SHELL GROUP SAID IT WAS FULLY INSURED THE REFINERY EXPLODED IN MAY 1988 WHEN A FLAMMABLE GAS IGNITED AFTER ESCAPING FROM A CORRODED EIGHTINCH PIPE THE BLAST WRECKED THE REFINERY INJURED SCORES OF PEOPLE DESTROYED HOUSES AND BLEW THE ROOFS OFF OF OTHERS IN THE TINY TOWN OF NORCO THAT BORDERS THE PLANT AND ROCKED SHELL'S REGIONAL OFFICE 25 MILES EAST IN NEW ORLEANS 9310210117 931021 WHO'S NEWS A SCHULMAN INC A SCHULMAN INC AKRON OHIO LEONARD EMGE FORMERLY MANAGER OF MANUFACTURING WAS NAMED TO THE NEWLY CREATED POST OF VICE PRESIDENTMANUFACTURING AT THIS SUPPLIER OF PLASTIC COMPOUNDS AND RESINS 9310210116 931021 LAW LEGAL BEAT LIVELY BATTLE ERUPTS OVER WHO SHOULD FILL FEDERAL CIRCUIT SEAT BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A SEAT ON THE US COURT OF APPEALS FOR THE FEDERAL CIRCUIT WON'T BE THE HIGHESTPROFILE JUDICIAL APPOINTMENT MADE BY THE CLINTON ADMINISTRATION BUT IT IS AMONG THE MOST IMPORTANT FOR BUSINESS AND THAT IS PROMPTING AN UNUSUALLY OPEN CAMPAIGN FOR A VACANCY ON THE COURT SINCE IT WAS CREATED IN 1982 THE FEDERAL CIRCUIT AS IT IS KNOWN HAS HAD A LOW PROFILE TO MOST EVERYONE BUT THE BUSINESS COMMUNITY FOR WHICH IT REGULARLY HEARS HIGHSTAKES BATTLES OVER SUCH ISSUES AS GOVERNMENT CONTRACTS INTERNATIONAL TRADE DISPUTES AND INTELLECTUAL PROPERTY FOR PATENT LAWYERS THE COURT IS IN EFFECT THE COURT OF LAST RESORT BECAUSE THE US SUPREME COURT RARELY ACCEPTS PATENT CASES FOR REVIEW AND WITH PATENT DISPUTES AMONG THE FASTEST GROWING AREAS OF LITIGATION IN THE FEDERAL COURTS THE TRIBUNAL HAS TAKEN ON EVEN ADDED SIGNIFICANCE BUT A STICKING POINT AMONG PRACTITIONERS OVER THE YEARS HAS BEEN THE DEARTH OF JUDGES ON THE COURT WITH EXPERIENCE LITIGATING PATENTLAW CASES AND A FEELING THAT THE COURT'S COMPOSITION HAS BEEN POLITICIZED THE AMERICAN INTELLECTUAL PROPERTY LAW ASSOCIATION RECOMMENDED A FEW YEARS AGO THAT THE PRESIDENT ESTABLISH AN INDEPENDENT JUDICIAL NOMINATING COMMISSION TO HANDLE APPOINTMENTS TO THE COURT TODAY AS PATENTLAW ISSUES ARE BECOMING MORE COMPLEX IN THE FACE OF NEW TECHNOLOGIES ONLY THREE CURRENT MEMBERS OF THE 12PERSON COURT HAS A PATENTLAW BACKGROUND AND ONE OF THEM IS AN EISENHOWER APPOINTEE IN RECENT MONTHS A LIVELY BATTLE HAS BROKEN OUT OVER WHO SHOULD FILL A VACANCY CREATED BY THE JUNE 1991 RETIREMENT OF CHIEF JUDGE HOWARD MARKEY WHO WAS CONSIDERED A FRIEND OF THE PATENTLAW COMMUNITY EVEN MAJOR CORPORATIONS HAVE TAKEN THE HIGHLY UNUSUAL STEP OF WEIGHING IN FOR THEIR FAVORED CANDIDATES WHILE SOME OTHER CANDIDATES HAVE TAKEN TO FAIRLY AGGRESSIVE SELFPROMOTION IN PARTICULAR PATENTLAWYERS ARE BANKING ON A NEW ADMINISTRATION WITH AN AVOWED COMMITMENT TO SCIENCE AND TECHNOLOGY SEEING IT AS IMPORTANT TO ADD PATENTLAW REPRESENTATION ON THE COURT AMONG THOSE PUSHING FOR SUCH A JUDGE IS JOHN B PEGRAM HIS PREFERRED CHOICE HIMSELF IN THE PAST FEW MONTHS MR PEGRAM 55 YEARS OLD AND A PARTNER AT THE NEW YORK FIRM OF DAVIS HOXIE FAITHFULL & HAPGOOD HAS WRITTEN TO THE WHITE HOUSE OFFERING HIMSELF UP AS A CANDIDATE AND MADE CONTACT WITH A NUMBER OF MEMBERS OF CONGRESS TRUMPETING HIS CREDENTIALS HE HAS ALSO EFFECTIVELY GARNERED THE SUPPORT OF OTHERS HE HAS HAD SCORES OF LETTERS SENT ON HIS BEHALF FROM LAWYERS AT MAJOR CORPORATIONS SUCH AS PROCTER & GAMBLE CO AND MOBIL OIL CORP AND HE HAS SENT LETTERS ANNOUNCING HIS CANDIDACY TO NEWSPAPERS INCLUDING THIS ONE HE HAS ALSO EFFECTIVELY GARNERED THE SUPPORT OF OTHERS HE HAS HAD SCORES OF LETTERS SENT ON HIS BEHALF INCLUDING FROM LAWYERS AT SUCH MAJOR CORPORATIONS AS PROCTER & GAMBLE CO AND MOBIL OIL CORP AND HE HAS SENT LETTERS ANNOUNCING HIS CANDIDACY TO NEWSPAPERS INCLUDING THIS ONE HE IS HELLBENT SAYS DENNIS BURKE MAJORITY COUNSEL TO THE SENATE JUDICIARY COMMITTEE PATENTLAW SUBCOMMITTEE WHO SAYS HE HAS RECEIVED MORE THAN 100 LETTERS ON MR PEGRAM'S BEHALF I FIND IT INCREDIBLY UNUSUAL INDEED SOME EXPERTS QUESTION THE VERY NOTION THAT BEING A PATENT LAWYER IS A PREREQUISITE FOR A SEAT ON THE COURT THE HEAVY DIET OF PATENT WORK ON THE FEDERAL CIRCUIT WILL PERMIT ANY JUDGE TO LEARN ON THE JOB INSISTS HAROLD C WAGNER A PATENTLAW PROFESSOR AT GEORGE WASHINGTON UNIVERSITY LAW SCHOOL WE NEED THE BEST QUALIFIED PEOPLE WHETHER THEY ARE PATENT ATTORNEYS TRIAL ATTORNEYS TAX ATTORNEYS OR WHATEVER MR PEGRAM IS FAR FROM THE ONLY CANDIDATE IN THE RUNNING THE 2100MEMBER FEDERAL CIRCUIT BAR ASSOCIATION HAS ENDORSED JESSICA PARKS A MEMBER OF THE MERIT SYSTEMS PROTECTION BOARD AND DAVID COHEN A DEPARTMENT OF JUSTICE LAWYER SPECIALIZING IN COMMERCIAL LITIGATION AS WELL AS MR PEGRAM OTHER PATENTLAW EXPERTS WHO ARE CONSIDERED IN THE RUNNING INCLUDE DONALD CHISUM A UNIVERSITY OF WASHINGTON PATENTLAW PROFESSOR WHO HAS WRITTEN A WELLKNOWN TREATISE ANOTHER IS STUART BOWIE A SWARTHMORE PENN SOLO PRACTITIONER WHO ALREADY HAS LOCKED UP THE SUPPORT OF SOME MEMBERS OF THE PENNSYLVANIA CONGRESSIONAL DELEGATION AND CLAIMS AS HIS CREDENTIALS THE FACT THAT HE HOLDS THREE PATENTS HIMSELF IT REMAINS TO BE SEEN WHAT THE WHITE HOUSE WILL DO THE APPOINTMENT ISN'T APPARENTLY YET A TOP PRIORITY FOR AN ADMINISTRATION THAT IS ALREADY STRUGGLING TO FILL A RECORD NUMBER OF JUDICIAL VACANCIES EVEN MR PEGRAM CONCEDES THIS COURT IS PROBABLY AT THE BOTTOM OF THE LIST IN THE REGINALD DENNY BEATING CASE THE JURY SURVIVED 2 1/2 DAYS OF DEADLOCK AND THE SICKNESS OF TWO JURORS TO ACQUIT DAMIAN WILLIAMS OF THE REMAINING SERIOUS CHARGE HE FACED ATTEMPTED PREMEDITATED MURDER OF MR DENNY MR WILLIAMS 20 YEARS OLD WAS ACQUITTED OF AGGRAVATED MAYHEM MONDAY AND A CONVICTION ON EITHER CHARGE COULD HAVE RESULTED IN LIFE IN PRISON MR WILLIAMS WAS CONVICTED OF THE FELONY OF SIMPLE MAYHEM ON MR DENNY AND OF FOUR MISDEMEANOR ASSAULT CHARGES THE LATEST VERDICT CONCLUDES THE TRIAL AGAINST MR WILLIAMS AND HENRY KEITH WATSON ON MONDAY MR WATSON 29 WAS ACQUITTED OF ATTEMPTED MURDER BUT HE WAS CONVICTED OF SIMPLE ASSAULT THE JURY EVENTUALLY WAS HUNG ON ONE CHARGE OF ASSAULT WITH A DEADLY WEAPON MR WATSON WAS RELEASED ON HIS OWN RECOGNIZANCE YESTERDAY HAVING SERVED LONGER THAN THE MAXIMUM SIXMONTH JAIL SENTENCE HE COULD RECEIVE FOR THE ASSAULT CONVICTION IN ADDITION TO THE ATTEMPTED MURDER CHARGE MR WATSON WAS ACQUITTED OF FIVE CHARGES OF ROBBERY AND ASSAULT MR WILLIAMS COULD SERVE AS LONG AS 10 YEARS IN JAIL ON THE MAYHEM AND MISDEMEANOR ASSAULT CONVICTIONS HE WILL BE SENTENCED DEC 7 ONE WEEK AFTER A HEARING AT WHICH PROSECUTORS AND DEFENSE LAWYERS WILL PRESENT EVIDENCE OF AGGRAVATING OR MITIGATING CIRCUMSTANCES SURROUNDING MR WILLIAMS AND THE CRIMES OF WHICH HE WAS CONVICTED BOTH MR WILLIAMS AND MR WATSON WERE ARRESTED MAY 14 1992 AND MR WILLIAMS REMAINS IN JAIL THE CASE AROSE OUT OF THE RIOTING THAT ERUPTED AFTER THE STATECOURT VERDICTS IN THE TRIAL OF FOUR WHITE POLICE OFFICERS WHO HAD BEEN ACCUSED OF BEATING MOTORIST RODNEY KING PROSECUTORS CLAIMED MESSRS WILLIAMS AND WATSON WERE CRIMINALS WHO HAD BEEN CAUGHT ON VIDEOTAPE BEATING PEOPLE WHILE DEFENSE LAWYERS ARGUED THAT THEY WERE CAUGHT UP IN A MOB ACTION AND WERE PROSECUTED AS SCAPEGOATS CONSERVATIVES IN CONGRESS LAUNCHED AN ATTACK ON THE CLINTON ADMINISTRATION FOR SOFTENING THE GOVERNMENT'S POSITION IN A CHILDPORNOGRAPHY CASE PENDING BEFORE THE SUPREME COURT THE ISSUE IS LIKELY TO BECOME A REPUBLICAN WEAPON IN THE COMING DEBATE OVER THE PRESIDENT'S PROPOSALS FOR ANTICRIME LEGISLATION REJECTING AN ARGUMENT MADE BY JUSTICE DEPARTMENT LAWYERS IN MARCH THE CLINTON ADMINISTRATION HAS URGED THE JUSTICES TO SET ASIDE A LOWERCOURT DECISION THAT AFFIRMED THE CONVICTION OF A PENNSYLVANIA MAN THE DEFENDANT WAS FOUND GUILTY OF OWNING SEXUALLY SUGGESTIVE VIDEO TAPES OF YOUNG GIRLS AND WAS SENTENCED TO A FIVEYEAR PRISON TERM THE CHILDREN DEPICTED IN THE TAPES WERE CLOTHED AND DIDN'T ENGAGE IN SEXUAL ACTS THE FEDERAL APPEALS COURT IN PHILADELPHIA BY ITS OWN ADMISSION INTERPRETED THE FEDERAL CHILDPORNOGRAPHY STATUTE EXPANSIVELY TO AFFIRM THE CONVICTION THE DEPARTMENT LAWYERS ACTING BEFORE MR CLINTON HAD HIS APPOINTEES IN PLACE ARGUED UNSUCCESSFULLY THAT THE HIGH COURT SHOULDN'T HEAR THE DEFENDANT'S APPEAL LAST MONTH THE ADMINISTRATION SAID THE PHILADELPHIA APPEALS COURT HAD MISINTERPRETED THE FEDERAL STATUTE AND SUGGESTED THAT THE JUSTICES SEND THE CASE BACK TO THAT COURT FOR RECONSIDERATION SOLICITOR GENERAL DREW DAYS APPROVED THE REVERSAL OF THE GOVERNMENT'S STANCE AFTER INTERNAL DEBATE AND OBJECTIONS FROM SOME DEPARTMENT PROSECUTORS IN A BRIEF SIGNED BY MR DAYS THE GOVERNMENT ASSERTED THAT TO VIOLATE THE FEDERAL ANTIPORN STATUTE THE MATERIAL IN QUESTION MUST INCLUDE A VISIBLE DEPICTION OF A CHILD'S GENITALS OR PUBIC AREA AS OPPOSED TO A DEPICTION OF THOSE AREAS COVERED BY CLOTHING THE BRIEF ALSO ARGUED THAT THE MATERIAL MUST SHOW A CHILD LASCIVIOUSLY ENGAGING IN SEXUAL CONDUCT AS DISTINGUISHED FROM LASCIVIOUSNESS ON THE PART OF THE PHOTOGRAPHER OR CONSUMER SEN CHARLES GRASSLEY R IOWA WHO IS LEADING CONSERVATIVE LAWMAKERS DEMANDING THAT ATTORNEY GENERAL JANET RENO ABANDON THIS POSITION SAID THE DEPARTMENT'S ARGUMENT WILL TRANSLATE INTO LAX ENFORCEMENT POLICIES YOU'RE NEVER GOING TO GET ANY CONVICTIONS UNDER THE CHILDPORNOGRAPHY LAW HE SAID A CLAIM DISPUTED BY DEPARTMENT OFFICIALS WHO SAID THE CASE WOULDN'T AFFECT PROSECUTIONS IN VOLVING GRAPHIC PORTRAYALS OF SEXUAL ACTIV ITY COASTAL MERGER SAN DIEGO'S BIGGEST LAW FIRM GRAY CARY AMES & FRYE SAID IT PLANS TO MERGE ON JAN 1 WITH THE PALO ALTO CALIF LAW FIRM WARE & FREIDENRICH A SPOKESWOMAN SAID NO ATTORNEY LAYOFFS WILL RESULT FROM THE CHANGE AND THE COMBINED FIRM WILL HAVE 270 LAWYERS IN SEEKING A MERGER GRAY CARY WANTED ENHANCED ACCESS TO THE CAPITAL MARKETS OF SILICON VALLEY AND SAN FRANCISCO AND WARE & FREIDENRICH WAS HOPING TO EXPAND INTO THE EMERGING HIGH TECH AND BIOTECH MARKETS OF SAN DIEGO COUNTY GRAY CARY SAID IN ITS ANNOUNCEMENT BENJAMIN A HOLDEN AND PAUL M BARRETT CONTRIBUTED TO THIS ARTICLE 9310210115 931021 BUSINESS BRIEF BLOCKBUSTER ENTERTAINMENT CORP THIRDQUARTER NET JUMPED BY 64 AS REVENUE ROSE 86 BLOCKBUSTER ENTERTAINMENT CORP BENEFITING FROM AN 18 GAIN IN SAMESTORE REVENUE IN THE COMPANY'S VIDEO STORES REPORTED THAT THIRDQUARTER EARNINGS JUMPED 64 ON AN 86 GAIN IN REVENUE THE FORT LAUDERDALE FLA VIDEO AND MUSIC RETAILER SAID NET INCOME INCREASED TO 697 MILLION OR 32 CENTS A SHARE IN THE THIRD QUARTER FROM 426 MILLION OR 22 CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO 5775 MILLION FROM 3107 MILLION THE RESULTS WERE AT THE HIGH END OF ANALYSTS' EXPECTATIONS THE COMPANY SAID THE THIRD QUARTER IS HISTORICALLY STRONG SINCE CHILDREN ARE HOME FROM SCHOOL AND WATCHING MORE MOVIES EARNINGS WERE RELEASED AFTER MARKETS CLOSED YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BLOCKBUSTER CLOSED AT 2875 A SHARE UP 75 CENTS 9310210114 931021 LETTERS TO THE EDITORS CHILDREN'S LEAD RISK MAY BE INCREASING YOUR SEPT 16 PAGEONE ARTICLE DID A DISSERVICE BY LABELING LEAD POISONING AS MAINLY A PROBLEM OF THE PAST ALTHOUGH AVERAGE LEAD LEVELS MAY HAVE DROPPED SINCE THE MID1970S THE BLOODLEAD LEVEL CONSIDERED TO INDICATE LEAD POISONING HAS FALLEN STEADILY SINCE THE 1970S ACCORDING TO THE FEDERAL CENTER FOR DISEASE CONTROL MORE CHILDREN MAY BE AT RISK THAN EVER BEFORE LEAD CONTINUES TO BE USED TODAY IN A RANGE OF PRODUCTS FROM LEADACID BATTERIES GLASS AND CERAMICS IE CONSUMER ELECTRONICS PLUMBING PLASTIC HEAT STABILIZERS IN PRODUCTS SUCH AS ELECTRIC CABLE INSULATION ELECTRIC CONDUITS FOOTWEAR PIGMENTS FOR PLASTICS PAINT INK PAPER RUBBER GLASS BRASS AND BRONZE PRODUCTS AND RUBBER PRODUCTS THESE PRODUCTS WILL EVENTUALLY END UP IN OUR MUNICIPAL WASTE STREAM TO BE PLACED IN LANDFILLS OR BURNED BY INCINERATORS THERE SHOULD BE A NATIONAL DEBATE ON ESTABLISHING FEDERAL MINIMUM GUIDELINES THAT DETERMINE WHAT ARE SAFE AND FEASIBLE METHODS OF LEAD ABATEMENT THIS WOULD HELP ENSURE THAT OUR CHILDREN ARE NOT LEAD POISONED IN THE PROCESS OF TRYING TO SOLVE THE LEAD PROBLEM 9310210113 931021 KEMPER TO PAY MORE THAN 10 MILLION TO END ACTIONS ON MUTUALFUND TRADES BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL A KEMPER CORP UNIT WILL PAY MORE THAN 10 MILLION TO SETTLE REGULATORY ACTIONS AND A RELATED CLASS ACTION LAWSUIT INVOLVING FUTURES TRADES IN TWO PUBLIC MUTUAL FUNDS IT MANAGED THE SECURITIES AND EXCHANGE COMMISSION AND THE COMMODITY FUTURES TRADING COMMISSION JOINTLY BROUGHT ADMINISTRATIVE ENFORCEMENT ACTIONS AGAINST KEMPER FINANCIAL SERVICES INC FOR ALLEGEDLY FAILING TO SUPERVISE FUTURES TRADES INVOLVING THE CHICAGO INVESTMENT ADVISER'S OWN EMPLOYEE PROFITSHARING PLAN AND THE TWO MUTUAL FUNDS THE KEMPER UNIT SAID IT AGREED TO PAY 9750000 BOTH TO SETTLE THE REGULATORY ACTIONS AND A RELATED SUIT FILED BY SHAREHOLDERS OF THE TWO MUTUAL FUNDS THE FUNDS KEMPER OPTION INCOME FUND AND INVESTMENT PORTFOLIOS INCOPTION INCOME PORTFOLIO TRADED FINANCIAL FUTURES CONTRACTS KEMPER FINANCIAL WAS ALSO ORDERED TO PAY 300000 IN CIVIL PENALTIES A CFTC ADMINISTRATIVE COMPLAINT ALLEGES THAT IN 1987 THOMAS RICHARDS THEN A KEMPER PORTFOLIO MANAGER MANAGED BOTH A PART OF THE FIRM'S PROFITSHARING PLAN AND THE TWO MUTUAL FUNDS THE AGENCY'S COMPLAINT ALLEGES THAT MR RICHARDS ENTERED ORDERS FOR STANDARD & POOR'S 500 STOCK INDEX FUTURES CONTRACTS ON NUMEROUS OCCASIONS WITHOUT IDENTIFYING THE ACCOUNT FOR WHICH THE TRADE WAS TO BE MADE MR RICHARDS FREQUENTLY ALLOCATED MORE FAVORABLE TRADES TO THE KEMPER EMPLOYEES' ACCOUNT AND ALLOCATED LESS FAVORABLE TRADES TO THE TWO PUBLIC MUTUAL FUNDS THE COMPLAINT ALLEGES THE SEC WHICH REGULATES INVESTMENT COMPANIES CHARGED KEMPER WITH VIOLATING REGULATIONS AGAINST SECURITIES TRANSACTIONS BETWEEN FUNDS MANAGED BY THE SAME ADVISER THOMAS C NEWKIRK ASSOCIATE DIRECTOR FOR THE SEC'S DIVISION OF ENFORCEMENT SAID THE COMMISSION INTENDS TO CRACK DOWN GENERALLY ON INVESTMENT ADVISERS ENGAGED IN SELF DEALING MR RICHARDS WHO LEFT KEMPER IN 1989 HASN'T PERSONALLY BEEN CHARGED IN CONNECTION WITH THE MATTER HIS LAWYER ANN TIGHE SAID HE CATEGORICALLY DENIES THAT HE WAS INVOLVED IN ANY WRONGDOING WHILE HE WAS A FUND MANAGER AT KEMPER ANY SUGGESTION IN THE SETTLEMENTS REACHED BY KEMPER WITH THE CFTC AND SEC THAT HE WAS ALLOCATING TRADES AMONG ACCOUNTS IS SIMPLY FALSE SHE ADDED HOWEVER BOTH CFTC AND SEC OFFICIALS SAY THE INVESTIGATION CONTINUES A 1990 BARRON'S ARTICLE REPORTED THAT THE TWO MUTUAL FUNDS INCURRED 40 MILLION IN FUTURES TRADING LOSSES DURING THE SAME 10MONTH PERIOD IN 1987 THAT MR RICHARDS' PORTION OF THE PROFITSHARING PLAN PICKED UP MORE THAN 25 MILLION IN FUTURES GAINS WITHOUT ADMITTING OR DENYING THE ALLEGATIONS KEMPER CONSENTED TO FINDINGS THAT IT VIOLATED SUPERVISORY REQUIREMENTS THE CFTC AND SEC SAID A CFTC ORDER REQUIRES KEMPER TO RETAIN AN INDEPENDENT CONSULTANT TO REVIEW THE FIRM'S COMPLIANCE POLICIES INVOLVING COMMODITY INTEREST TRADING OPERATIONS TO ADOPT THE CONSULTANT'S RECOMMENDATIONS AND TO COOPERATE WITH ANY OTHER INQUIRIES OR LAWSUITS CONCERNING THE TRANSACTIONS IN QUESTION THE SEC AND CFTC ORDERS ALSO REQUIRE KEMPER TO CEASE AND DESIST FROM VIOLATING REGULATIONS INVOLVING SUPERVISION AND JOINT TRANSACTIONS BETWEEN FUNDS MEANWHILE THE CLASS ACTION REPRESENTING 170000 SHAREHOLDERS IS PENDING IN ILLINOIS STATE COURT IF THE LITIGATION IS SETTLED WITH COURT APPROVAL THE 9750000 WILL BE DISTRIBUTED THROUGH THE SETTLEMENT IN THAT SHAREHOLDER ACTION UNDER COURT SUPERVISION IF THE LITIGATION ISN'T SETTLED THE ESCROW FUNDS WILL BE DISTRIBUTED UNDER AUSPICES OF THE CFTC AND THE SEC TO SHAREHOLDERS WHO EXECUTE RELEASES THE SETTLEMENT WON'T ADVERSELY AFFECT THE FUNDS BECAUSE KEMPER WILL MAKE THE PAYMENT THE INVESTMENT ADVISER SAID IT SAID IT HAS ADEQUATE RESERVES TO PAY THE SETTLEMENT WE DECIDED TO SETTLE INSTEAD OF LITIGATING IN ORDER TO RESOLVE ALL OUTSTANDING ISSUES REGARDING THIS MATTER SAID CHARLES M KIERSCHT KEMPER FINANCIAL SERVICES CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9310210112 931021 POLITICS & POLICY WHILE STATE AND LOCAL AGENCIES WONDER HOW TO DEAL WITH COMBINATION BY GAUTAM NAIK AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK BELL ATLANTIC CORP'S PROPOSED ACQUISITION OF TELECOMMUNICATIONS INC HAS STATE AND LOCAL REGULATORS GRAPPLING WITH HOW TO RIDE HERD OVER A NEW KIND OF COMPANY THAT STRADDLES TWO DIFFERENT MONOPOLIES REGULATED IN ENTIRELY DIFFERENT WAYS IN THE VACUUM OF A NATIONAL POLICY ON TELECOMMUNICATIONS STATE AND LOCAL OFFICIALS ARE BRACED FOR A SQUABBLE OVER HOW TELCOCABLE COMBINATIONS SHOULD BE REGULATED AND WHO WILL TAKE THE LEAD ROLE THE TUSSLING COULD CAUSE A TRAFFIC JAM ON THE ELECTRONIC HIGHWAY THE LINES ARE STARTING TO GET REAL FUZZY SAYS ALLEN GARNER AN ATTORNEY FOR THE CITY OF JEFFERSON CITY MO BELL ATLANTIC WOULD HAVE TO SEEK AN ANSWER PROBABLY AT THE STATE LEVEL AS TO WHO WILL REGULATE THE NEW CREATURE UNLESS HE ADDS THIS GETS PREEMPTED BY THE FEDERAL GOVERNMENT WITH THE BELL ATLANTICTCI DEAL INDUSTRY HAS OUTRUN GOVERNMENT POLICY THE GOVERNMENT MUST SET UP A NEW PARADIGM TO DEAL WITH THIS CONVERGENCE SAYS REP ED MARKEY D NY WHO WILL SOON INTRODUCE A BILL LETTING TELEPHONE COMPANIES COMPETE WITH CABLE IN VIDEO SERVICES EVEN IF CONGRESS STEPS IN TO REMOVE BARRIERS HOWEVER IT WILL BE UP TO THOUSANDS OF LOCAL REGULATORS TO TURN BROAD FEDERAL POLICY INTO THE NITTYGRITTY OF DAILY OVERSIGHT WHEN CONGRESS PASSED THE 1992 CABLE ACT FOR EXAMPLE THE FEDERAL COMMUNICATIONS COMMISSION SET OUT MORE THAN 500 PAGES OF RULES TO ENFORCE IT THE FUNDAMENTAL DIFFERENCE BETWEEN PHONE SERVICE AS A BASIC NECESSITY AND CABLE AS MOSTLY ENTERTAINMENT WILL BE AT THE HEART OF THE REGULATORY SCRUTINY THE BELL ATLANTIC DEAL IS THE FIRST STEP TOWARD AN INFORMATION UTILITY SAYS BARRY ORTON A UNIVERSITY OF WISCONSIN PROFESSOR WHO ADVISES LOCAL GOVERNMENTS ON CABLE REGULATION AND GOING FORWARD YOU HAVE TO HAVE SOME KIND OF UTILITY REGULATION ON THINGS LIKE RATES CUSTOMER SERVICE ACCESS TO SERVICE AND MORE PHONE UTILITIES ARE REGULATED BY 50 STATE PUBLIC SERVICE COMMISSIONS YET MORE THAN 33000 FRANCHISING AUTHORITIES REGULATE MORE THAN 11000 CABLE SYSTEMS ACROSS THE US OFFERING A DIFFERENT NUMBER OF CHANNELS TO VARYING NUMBERS OF SUBSCRIBERS REGULATORS QUESTION WHO WOULD OVERSEE A PHONE SERVICE PROVIDER TRANSMITTING VIDEO OVER ITS LINES TO HOMES THE STATE PUBLIC SERVICE COMMISSION OR A TOWN'S CABLETV BOARD WHICH ENTITY WOULD OVERSEE A CABLE COMPANY THAT TRANSMITS PHONE SERVICE WOULD BELL ATLANTIC IN BEAMING PHONE SERVICE TO OTHER MARKETS ALONG TCI WIRES HAVE TO MEET THE SAME TOUGH RESTRICTIONS FOR UNIVERSAL AVAILABILITY AND UNIFORM PRICING THAT IT MUST MEET UNDER PHONE REGULATIONS BELL ATLANTIC EXPECTS TO START PROVIDING PHONE SERVICE OVER TCI LINES BY A YEAR FROM NOW EDWARD D YOUNG III A BELL ATLANTIC VICE PRESIDENT SAYS A LESSDEMANDING SET OF STANDARDS SHOULD APPLY TO A VIACABLE PHONE SERVICE OUTSIDE OF OUR REGION OUR PRESENCE AS A PHONE PROVIDER CAN ONLY PROMOTE COMPETITION ONCE WE IDENTIFY THE REQUIREMENTS OF EACH REGULATOR WE'RE GOING TO MEET THEM THAT COULD PROVE MORE DIFFICULT THAN EXPECTED DELAYING THE REGULATORY CLEARANCES THAT BELL ATLANTIC AND OTHERS HOPE TO GET IN SOUTH DAKOTA U S WEST IS OUR LOCAL TELEPHONE COMPANY AND WOULD HAVE MORE CREDIBILITY WITH US SAYS LASKA SCHOENSELDER CHAIRMAN OF THE STATE'S PUBLIC UTILITIES COMMISSION THE CABLE COMPANY WOULD HAVE TO PROVE THAT IT'S A PUBLICSERVICE ISSUE AND THAT COMPETITION WOULD LOWER PRICES AND GUARANTEE GOOD SERVICE SHE SAYS BUT THEY'D FIND IT HARD IN MISSOURI WHERE TCI OWNS CABLE SYSTEMS SOUTHWESTERN BELL'S RIGHT TO PROVIDE LOCAL PHONE SERVICE IS PROTECTED BY STATUTE AND WE'D NEED A CHANGE IN THE LAW SAYS KENNETH MCCLURE VICE CHAIRMAN OF THE STATE'S PUBLIC SERVICE COMMISSION I ASSUME THAT WOULD BE THE CASE IN MANY STATES IN JEFFERSON CITY MO CITY REGULATORS PUSHED TCI FOR YEARS TO LOWER CABLE RATES AND IMPROVE SUBPAR SERVICE SAYS THE CITY ATTORNEY MR GARNER THE CABLE OPERATOR HAS MENDED FENCES WITH CITY REGULATORS BUT THEY HAVE DOUBTS ABOUT THE DEPENDABILITY OF TCI AS A PROVIDER OF PHONE SERVICE IT'S ONE THING IF MY TV SET DOESN'T WORK BUT QUITE ANOTHER IF MY PHONE DOESN'T MR GARNER SAYS SOME EXPERTS SAY THE NEED FOR PHONE SERVICE TO REACH ALL CONSUMERS AT UNIFORM PRICES MAY MAKE THE STATES WITH HELP FROM THE FEDERAL GOVERNMENT A MORE LIKELY AUTHORITY FOR CABLE AND TELEPHONE IN THE FUTURE BUT LOCAL OFFICIALS ALREADY ARE CHAFING AT ANY INTRUSION BY STATE REGULATORS WILLIAM BRADLEY TELECOMMUNICATIONS DIRECTOR FOR DENVER WORRIES THAT THE LOCALITIES ARE GOING TO GET SQUEEZED OUT IN THE LONG RUN BECAUSE THE GOVERNMENT SEES US AS A 33000PIECE CRAZY QUILT HE ADDS BUT DOGGONE IT THIS IS WHERE THE RUBBER MEETS THE ROAD WE'RE THE ONES WHO ARE FIRST ACCOUNTABLE TO THE PEOPLE WE DON'T HAVE THE KIND OF INSULATION FROM THE LOCAL COMMUNITY THAT THE STATE REGULATORS DO BUT LOCAL CABLE REGULATORS ALREADY ARE OVERWHELMED WITH ENFORCING THEIR NEW POWERS UNDER THE 1992 CABLE ACT AS A RESULT REGULATORY APPROVAL OF THE BELL ATLANTICTCI PACT MAY TAKE WELL OVER A YEAR AND LONGER THAN THE COMPANIES EXPECT SAYS GEORGE DELLINGER OF NATWEST SECURITIES CORP WILLIAM SQUADRON WHO RUNS A TRADE GROUP OF MORE THAN 4000 LOCAL REGULATORY AUTHORITIES SAYS OFFICALS AT THE FEDERAL STATE AND LOCAL LEVELS MUST JOIN TO WORK OUT THE REGULATORY SNAGS THE CURRENT FRAMEWORK ISN'T SET UP FOR WHAT IS COMING IN THE NEXT COUPLE OF YEARS HE SAYS GOVERNMENT MUST CHANGE TO SERVE THE PUBLIC SEE RELATED ARTICLE SPURRED BY THE BELLTCI DEAL CONGRESS MOVES TOWARD ENDING CABLE TVPHONE BARRIERS WSJ OCT 21 1993 9310210110 931021 WHO'S NEWS HEALTH IMAGES INC HEALTH IMAGES INC ATLANTA PAUL W HARRIS WAS NAMED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT OF MARKETING OF THIS OPERATOR OF MEDICAL DIAGNOSTIC CENTERS MR HARRIS 39 YEARS OLD HAD BEEN SENIOR SALES EXECUTIVE AT CIGNA CORP 9310210109 931021 WHO'S NEWS OWENSCORNING FIBERGLAS INC OWENSCORNING FIBERGLAS INC TOLEDO OHIO DOMENICO CECERE 44 YEARS OLD WAS NAMED VICE PRESIDENT AND CONTROLLER OF THIS PRODUCER OF FIBERGLASS CONSTRUCTION PRODUCTS MR CECERE A FORMER HONEYWELL INC VICE PRESIDENT SUCCEEDS CHARLES BLAND WHO BECAME VICE PRESIDENT ASIA/PACIFIC THIS SUMMER 9310210108 931021 TECHNOLOGY & HEALTH CANCER STUDY TRIES LETHAL WARHEADS' RESEARCHERS SAY TREATMENTS USED RADIOACTIVE ATOMS TO GET FULL REMISSIONS BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCHERS SAID THEY INDUCED COMPLETE REMISSIONS OF A LYMPH CANCER IN 16 OF 19 PATIENTS TREATED WITH MONOCLONAL ANTIBODIES BEARING LETHAL WARHEADS OF RADIOACTIVE ATOMS THE REPORT RENEWED HOPES THAT THE GUIDED MISSILE APPROACH TO CANCER MAY FINALLY REALIZE THE HIGH PROMISES AND HEADLINES THAT HAILED THE CONCEPT A DECADE AGO CANCER SPECIALISTS IN SEATTLE REPORTED THAT THEY USED MONOCLONAL ANTIBODIES TIPPED WITH RADIOACTIVE IODINE TO TREAT PATIENTS SUFFERING FROM BCELL LYMPHOMA A LEUKEMIALIKE CANCER OF CERTAIN WHITE BLOOD CELLS FOUND IN THE LYMPH NODES SPLEEN AND OTHER TISSUES LINKED TO THE LYMPH SYSTEM THIS TYPE OF LYMPHOMA STRIKES AN ESTIMATED 40000 AMERICANS ANNUALLY OF THE 16 PATIENTS WHO HAD COMPLETE REMISSIONS NINE WERE STILL FREE OF THEIR CANCERS AT THE TIME THE RESEARCHERS WROTE THEIR REPORT WHICH APPEARS IN THIS WEEK'S ISSUE OF THE NEW ENGLAND JOURNAL OF MEDICINE THE REPORT WAS MADE BY RESEARCHERS AT THE FRED HUTCHINSON CANCER RESEARCH CENTER AND THE UNIVERSITY OF WASHINGTON MEDICAL CENTER ONE OF THE PATIENTS HAS BEEN IN REMISSION MORE THAN FIVE YEARS ANOTHER FOR THREE YEARS AND A THIRD FOR TWO YEARS RELAPSES OF CANCER OCCURRED IN SEVEN OF THE 16 PATIENTS FIVE TO 12 MONTHS AFTER TREATMENT TWO OTHER PATIENTS HAD PARTIAL REMISSIONS LASTING TWO TO FIVE MONTHS ONLY ONE PATIENT HAD A MINOR RESPONSE THE TUMOR SIZE WAS REDUCED BUT NOT ELIMINATED IN THAT INSTANCE HOWEVER THE CANCER DIDN'T SHOW ANY RESURGENCE FOR 18 MONTHS SO FAR ONLY THREE OF THE 19 PATIENTS HAVE DIED I LOOK AT THIS AS A FIRST GENERATION STUDY SAID IRWIN D BERNSTEIN WHO WITH OLIVER W PRESS LED THE TEAM THAT CARRIED OUT THE EXPERIMENT DR BERNSTEIN SAID HE BELIEVES BETTER MONOCLONAL ANTIBODIES THAT TARGET CANCER CELLS MORE PRECISELY CAN BE DEVELOPED THE NEXT QUESTION TO BE ANSWERED HE SAID IS WHETHER THE ANTIBODYRADIATION TREATMENT WILL PRODUCE BETTER RESULTS THAN THE CONVENTIONAL METHOD OF HIGHDOSE CHEMOTHERAPY OR WHOLEBODY RADIATION FOLLOWED BY BONEMARROW IMPLANTS THE SEATTLE ACCOMPLISHMENT MAY MARK A TURNING POINT IN THE USE OF MONOCLONAL ANTIBODIES AGAINST CANCER MONOCLONAL ANTIBODIES ARE LABORATORY VERSIONS OF PROTEINS THE BODY'S IMMUNE SYSTEM LAUNCHES TO FIGHT OFF INVASIONS OF FOREIGN PROTEINS SUCH AS VIRUSES EACH BATTERY OF ANTIBODIES IS DESIGNED TO HOME IN ON AND ATTACK A SPECIFIC PROTEIN DISPLAYED ON THE SURFACE OF THE INVADER A DECADE AGO RESEARCHERS BEGAN TRYING TO MAKE ANTIBODIES THAT WOULD HOME IN ON UNIQUE PROTEINS ON THE SURFACE OF CANCER CELLS THE EFFORT HOWEVER HAS BEEN PLAGUED BY PROBLEMS NOT ALL CANCER CELLS DISPLAY THE SAME UNIQUE PROTEINS AND MANY WOULD BE MISSED BY AN ATTACK OF MONOCLONAL ANTIBODIES FOR INSTANCE THE ANTIBODIES ALSO ARE MADE BY MOUSE CELLS AND HUMAN PATIENTS TEND TO DEVELOP AN IMMUNITY TO THEM IT NOW APPEARS THAT HUMAN BCELL LYMPHOMA MAY BE THE FIRST CANCER TO YIELD TO MONOCLONAL ANTIBODIES PATIENTS WITH THIS CANCER SEEM LESS LIKELY TO DEVELOP AN IMMUNITY TO THE MOUSE ANTIBODIES THE MALIGNANT CELLS ALSO ARE MORE SENSITIVE TO THE LETHAL EFFECTS OF RADIATION THAN OTHER CANCERS MOREOVER ANTIBODIES HAVE BEEN DEVELOPED THAT FOR THE MOST PART ZERO IN ON THE MALIGNANT WHITE BCELLS THE SEATTLE RESEARCHERS FOR INSTANCE USED ANTIBODIES DEVELOPED BY THREE DIFFERENT COMPANIES BRISTOLMYERS SQUIBB CO NEW YORK IDEC PHARMACEUTICALS CORP SAN DIEGO AND COULTER CORP THE ANTIBODY DEVELOPED BY COULTER A MIAMIBASED BIOTECHNOLOGY COMPANY PRODUCED THE BEST RESULTS THEY SAID THE SEATTLE RESEARCHERS' SUCCESS STEMMED FROM THEIR USE OF THE ANTIBODIES TO DELIVER RADIOACTIVE IODINE TO THE CANCER CELLS IN FAR HIGHER DOSES THAN EVER ATTEMPTED THE HIGH RADIATION DOSE WAS POSSIBLE BECAUSE THE RESEARCHERS REMOVED BONE MARROW FROM EACH PATIENT BEFORE TREATMENT AND PURGED IT IN THE TESTTUBE OF ANY RESIDUAL CANCER CELLS SAVING IT TO BE USED IN CASE THE RADIATION CAUSED TOO MUCH DAMAGE TO THE BONE MARROW WITH BONE MARROW RESERVED THE LIMITING FACTOR BECAME THE AMOUNT OF RADIATION THAT OTHER ORGANS SUCH AS THE LUNGS COULD WITHSTAND THE RESEARCHERS FOUND THAT PATIENTS COULD STAND UP TO 27 GRAY UNITS OF RADIATION IN A SINGLE TREATMENT WITH EACH GRAY MEASURING RADIATION ABSORBED BY THE TISSUE THIS AMOUNT OF RADIATION IF GIVEN TO THE BODY AS A CONVENTIONAL RADIATION TREATMENT OF LYMPHOMAS WOULD BE LETHAL WITH THE ANTIBODY HOWEVER MOST OF THE RADIATION WAS DELIVERED TO THE CANCER CELLS WHILE SPARING MOST NORMAL TISSUES OTHER RESEARCHERS ALSO ARE DELIVERING THIS MUCH RADIATION AGAINST BCELL LYMPHOMA USING MONOCLONAL ANTIBODIES WITH RADIOACTIVE WARHEADS OF RADIOACTIVE IODINE BUT IN MULTIPLE TREATMENTS SPACED OUT OVER SEVERAL WEEKS RATHER THAN IN ONE TREATMENT THIS SUMMER FOR INSTANCE CANCER RESEARCHERS AT THE UNIVERSITY OF MICHIGAN IN ANN ARBOR ALSO USED THE COULTER ANTIBODY TREATING 10 LYMPHOMA PATIENTS AND ACHIEVING COMPLETE REMISSION IN FOUR AND PARTIAL REMISSIONS IN TWO THREE OF THE PATIENTS WERE STILL FREE OF CANCER AT THE TIME OF THE REPORT IN AUGUST AT THE UNIVERSITY OF CALIFORNIA DAVIS DR GERALD DENARDO SAYS THAT IN THE PAST EIGHT YEARS HE'S TREATED 58 BCELL LYMPHOMA PATIENTS WITH RADIOACTIVE IODINE TACKED ONTO A MONOCLONAL ANTIBODY DEVELOPED BY TECHNICLONE INTERNATIONAL CORP OF TUSTIN CALIF ABOUT TWOTHIRDS OF THE PATIENTS RESPOND TO THE TREATMENTS AND HALF OF THESE ARE IN COMPLETE REMISSION HE SAID NOT ALL PATIENTS WITH BCELL LYMPHOMA WILL BE CANDIDATES FOR THE TREATMENT HOWEVER THE SEATTLE RESEARCHERS FOR EXAMPLE INITIALLY TESTED 43 LYMPHOMA PATIENTS WITH A TRACER ANTIBODY THE ANTIBODY APPEARED TO ZERO IN ON THE CANCER CELLS IN ONLY 24 PATIENTS THREE PATIENTS THEN DEVELOPED AN IMMUNITY TO THE ANTIBODY THAT BARRED THEM FROM FURTHER TREATMENT ONE PATIENT HAD TO DROP OUT BECAUSE HIS INSURANCE COMPANY WOULDN'T COVER THE NONEXPERIMENTAL COSTS OF THE EXPERIMENT A FIFTH PATIENT WASN'T TREATED BECAUSE OF A TEMPORARY LACK OF THE MONOCLONAL ANTIBODY 9310210107 931021 WHO'S NEWS AQUA VIE BEVERAGE CORP AQUA VIE BEVERAGE CORP KETCHUM IDAHO KEVIN E WALSH 47 YEARS OLD EXECUTIVE VICE PRESIDENT AT GOODY PRODUCTS IN KEARNY NJ HAS BEEN ELECTED A DIRECTOR OF THIS BEVERAGE COMPANY EXPANDING THE BOARD TO FIVE 9310210106 931021 UNION PACIFIC NET FELL IN 3RD PERIOD CONRAIL POSTS LOSS BY LOURDES LEE VALERIANO STAFF REPORTER OF THE WALL STREET JOURNAL ONETIME CHARGES BATTERED THIRDQUARTER RESULTS BY RAILROAD COMPANIES UNION PACIFIC CORP AND CONRAIL INC BUT WHILE UNION PACIFIC ALSO SAW EARNINGS SHARPLY REDUCED BY THIS SUMMER'S MIDWEST FLOODS THE TOLL ON CONRAIL WHOSE TRACKS LIE EAST OF THE MISSISSIPPI RIVER WAS LIMITED UNION PACIFIC BETHLEHEM PA SAID EARNINGS DROPPED 42 BECAUSE OF THE FLOODS AND INCREASED INCOMETAX EXPENSE RESULTING FROM THE 1993 TAX LAW THE COMPANY SAID EARNINGS FELL TO 108 MILLION OR 53 CENTS A SHARE FROM 185 MILLION OR 91 CENTS A SHARE THE YEAR EARLIER THE INCREASED EXPENSE FROM THE NEW TAX LEGISLATION TOTALED 69 MILLION WITH 61 MILLION RELATING TO A ONETIME NONCASH DEFERRED TAX ADJUSTMENT EXCLUDING THE ONETIME PORTION OF THE TAX ADJUSTMENT NET INCOME WOULD HAVE TOTALED 169 MILLION OR 83 CENTS A SHARE REVENUE ROSE 3 TO 19 BILLION BUT EXPENSES GREW FASTER AT 5 TO 156 BILLION THE UNION PACIFIC RAILROAD UNIT POSTED EARNINGS OF 146 MILLION DOWN FROM 185 MILLION IN THE 1992 QUARTER THE MIDWEST FLOODS CUT OPERATING PROFIT IN THE QUARTER BY 34 MILLION RESOURCES MEANWHILE ROSE 28 TO 68 MILLION THE 1992 QUARTER'S FIGURE HOWEVER INCLUDED 16 MILLION IN COSTS ASSOCIATED WITH A RESTRUCTURING PROFIT AT OVERNITE TRANSPORTATION THE TRUCKING SUBSIDIARY ROSE 11 TO 20 MILLION EXCLUDING A 6 MILLION CHARGE FOR AMORTIZATION OF GOODWILL USPCI UNION PACIFIC'S ENVIRONMENTALSERVICES UNIT EARNED 1 MILLION COMPARED WITH 3 MILLION THE YEAR EARLIER BEFORE A 2 MILLION CHARGE FOR AMORTIZATION OF GOODWILL IN EACH PERIOD CONRAIL BASED IN PHILADELPHIA REPORTED A LOSS OF 3 MILLION OR SEVEN CENTS A SHARE COMPARED WITH A PROFIT OF 75 MILLION OR 88 CENTS A SHARE THE YEAR BEFORE THE LATEST RESULTS REFLECT AN ADJUSTMENT FOR THE ESTIMATED LOSS ON THE FUTURE DISPOSITION OF CONCORD RESOURCES GROUP CONRAIL'S WASTEDISPOSAL VENTURE OF 50 MILLION OR 62 CENTS A SHARE THEY ALSO INCLUDE 36 MILLION OR 45 CENTS A SHARE IN INCREASED INCOMETAX EXPENSES FOR THE RETROACTIVE EFFECTS OF THE NEW TAX LAW EXCLUDING THESE ITEMS CONRAIL EARNED 83 MILLION OR 1 A SHARE IN THE QUARTER REVENUE EDGED UP 08 TO 854 MILLION THE STOCKS OF BOTH COMPANIES ARE LISTED ON THE NEW YORK STOCK EXCHANGE AND IN COMPOSITE TRADING YESTERDAY UNION PACIFIC COMMON CLOSED AT 5925 UP 50 CENTS CONRAIL SHARES CLOSED AT 6025 OFF 75 CENTS 9310210105 931021 WHO'S NEWS GTE SHUFFLES ITS SENIOR MANAGEMENT SIGNALING IT IS SEEKING MULTIMEDIA ROLE BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GTE CORP SHOOK UP SENIOR MANAGEMENT AND BEEFED UP ITS STRATEGICPLANNING EFFORTS SIGNALING A DETERMINATION TO BE MORE THAN A BYSTANDER IN THE TELEPHONECABLE MULTIMEDIA WARS GTE HAD INTERNAL DISCUSSIONS AIMED AT ACQUIRING A STAKE IN CABLE CONCERN TELECOMMUNICATIONS INC BEFORE THAT COMPANY ANNOUNCED PLANS LAST WEEK TO LINK UP WITH BELL ATLANTIC CORP ACCORDING TO PEOPLE FAMILIAR WITH GTE'S PLANS GTE CHAIRMAN CHARLES R LEE DECLINED TO COMMENT ON THE DISCUSSIONS BUT SAID HE IMPOSED THE LATEST MANAGEMENT CHANGES IN PART TO PARTICIPATE IN THE CURRENT TELEPHONECABLE MATING DANCE IT'S OUR INTENTION TO BE AN ABSOLUTE PLAYER IN THE DELIVERY OF VOICE DATA IMAGE AND VIDEO SERVICES TO OUR CUSTOMERS MR LEE SAID IN AN INTERVIEW WE'LL LOOK AT ALL OPPORTUNITIES TO EXPAND INCLUDING A NEW WIRELESS PHONE OFFERING CALLED PERSONAL COMMUNICATION SERVICES IT ISN'T CLEAR WHERE GTE MIGHT FOCUS ANY ACQUISITION EFFORTS ITS RIVALS AMONG THE BABY BELL COMPANIES ARE ENCHANTED WITH CABLE SYSTEMS WHILE CABLEORIENTED PLAYERS VIACOM INC AND QVC NETWORK INC ARE FIGHTING OVER PARAMOUNT COMMUNICATIONS INC ADDING TO THE INTRIGUE IS MR LEE'S STATUS AS A FORMER CHIEF FINANCIAL OFFICER OF THE FORMER COLUMBIA PICTURES BEFORE JOINING GTE IN 1983 I DON'T LACK FOR CONTACTS IN THE ENTERTAINMENT INDUSTRY MR LEE SAID I KNOW EVERYBODY AND I'M PROUD OF THAT HE ADDED SEVERAL DEFINING DECISIONS WILL HAVE TO BE MADE BY THIS COMPANY SOME AWESOME AT TIMES THE NEW TEAM HE ESTABLISHED WILL BE HIS SENIOR MANAGERS FOR THE NEXT CENTURY GTE APPOINTED OUTSIDE DIRECTOR MICHAEL T MASIN 48 YEARS OLD TO THE NEW POST OF VICE CHAIRMAN HE WILL OVERSEE FINANCE EXTERNAL AND LEGAL AFFAIRS PERSONNEL AND TECHNOLOGY AND INTERNATIONAL DEVELOPMENT ONE OF THE FIRST TASKS FOR MR MASIN A PARTNER WITH LAW FIRM O'MELVENY & MYERS WILL BE TO COORDINATE THE SEARCH FOR A NEW CHIEF FINANCIAL OFFICER TO SUCCEED NICHOLAS L TRIVISONNO MR TRIVISONNO 46 WAS NAMED TO A NEW POST IN A NEWLY CREATED OFFICE OF THE CHAIRMAN AS EXECUTIVE VICE PRESIDENT HE WILL BE GTE'S TOP STRATEGIC PLANNER AND OVERSEE THE HIGHGROWTH AREA OF WIRELESS SERVICES AS WELL AS PHONE DIRECTORIES AND DEFENSE AND SATELLITE COMMUNICATIONS BUSINESSES ALSO NAMED VICE CHAIRMAN WAS KENT B FOSTER 50 WHO WILL CONTINUE TO RUN GTE'S EXTENSIVE LOCAL TELEPHONE OPERATIONS AND WILL NOW SUPERVISE GTE'S MARKETING AND QUALITY PROGRAMS ALL THREE EXECUTIVES WILL JOIN MR LEE IN THE OFFICE OF THE CHAIRMAN THE NEW ARRANGEMENT MAY SPARK A COMPETITION FOR GTE'S TOP SLOT AMONG THE SENIOR EXECUTIVES TWO OF WHOM ARE IN THEIR FORTIES THE MANAGEMENT SHIFT APPROVED AT A SPECIAL MEETING OF THE GTE BOARD IS MR LEE'S FIRST MAJOR REALIGNMENT SINCE HE BECAME CHAIRMAN LAST YEAR BUT IT IS UNCLEAR WHETHER MR LEE HAS YET TELEGRAPHED A POTENTIAL SUCCESSOR HE IS ONLY 53 AND IS 12 YEARS AWAY FROM MANDATORY RETIREMENT FOR GTE CHAIRMEN GTE HAS NO PRESIDENT AND NONE WAS NAMED YESTERDAY GTE ALSO ANNOUNCED THAT JOHN L SEAGALL 66 VICE CHAIRMAN OF CORPORATE PLANNING WILL RETIRE BUT REMAIN ON GTE'S BOARD UNTIL THE ANNUAL MEETING IN APRIL TERRY S PARKER 48 WHO RUNS GTE'S CELLULAR BUSINESS RETAINS THOSE DUTIES AND WAS PROMOTED TO A CORPORATE SENIOR VICE PRESIDENT HE WILL NOW REPORT TO MR TRIVISONNO INSTEAD OF MR LEE 9310210104 931021 WHO'S NEWS MODINE MANUFACTURING CO MODINE MANUFACTURING CO RACINE WIS MICHAEL T YONKER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PORTEC INC WAS NAMED A DIRECTOR OF THIS PROVIDER OF HEATTRANSFER TECHNOLOGY TO THE VEHICULAR INDUSTRIAL COMMERCIAL AND BUILDING MARKETS INCREASING BOARD MEMBERSHIP TO 11 9310210103 931021 WORLD MARKETS RALLIES IN LONDON AND FRANKFURT PROPEL BOURSES TO RECORDS ON GERMAN RATE OUTLOOK UK DATA A WALL STREET JOURNAL NEWS ROUNDUP A HINT OF LOWER INTEREST RATES BY THE GERMAN CENTRAL BANK AND ENCOURAGING BRITISH ECONOMIC DATA IGNITED LONDON STOCKS YESTERDAY PROPELLING THE MARKET TO ITS THIRD ALLTIME HIGH IN FOUR SESSIONS AND FRANKFURT STOCKS REBOUNDED SENDING THE MAIN INDEX UP TO A RECORD FINISH TOKYO PRICES FINISHED MIXED TO HIGHER WEDNESDAY IN THIN DEALINGS THAT CONTINUED WITHIN A NARROW RANGE WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11343 UP 022 REFLECTING INCREASES IN ASIA/PACIFIC AND EUROPEAN MARKETS AND DECREASES IN AMERICAN MARKETS FOOTWEAR STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 8397 UP 248 OR 3 WITH REEBOK INTERNATIONAL OF THE US POSTING A 13 GAIN IN ITS LOCAL CURRENCY POLLUTION STOCKS TRAILED AT 6667 DOWN 768 OR 10 WITH WMX TECHNOLOGIES OF THE US SLIDING 17 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX GAINED 267 POINTS TO 31563 THE FT 30STOCK INDEX RALLIED 254 POINTS OR 11 TO 23792 VOLUME WAS 743 MILLION SHARES COMPARED WITH 6582 MILLION SHARES A DAY EARLIER IN ITS REGULAR MONEYMARKET OPERATIONS THE GERMAN BUNDESBANK FRACTIONALLY LOWERED ITS 14DAY SECURITIES REPURCHASE RATE IN THE PAST A REPO RATE REDUCTION HAS BEEN FOLLOWED BY A KEY LENDINGRATE CUT AS THE BUNDESBANK WAS SCHEDULED TO CONSIDER ITS MONETARY POLICY TODAY ITS MONEYMARKET MOVE SPARKED HOPES IN LONDON OF LOWER INTEREST RATES FOR EUROPE WITH LOWER MONEYMARKET RATES STOCK PLAYERS BELIEVE DIVIDEND YIELDS CAN FALL WHEN INVESTORS COMPARE BANK STOCK AND BOND YIELDS A LOWER DIVIDEND YIELD IN THE STOCK MARKET MEANS PRICES SHOULD BE HIGHER AND THIS IS DRIVING LONDON'S RECENT RALLY AIDED BY A BUYING FLOW FROM US INVESTORS THE LONDON MARKET'S ACROSSTHEBOARD ADVANCE ALSO WAS BUOYED BY BRITISH RETAIL SALES DATA FOR SEPTEMBER WHICH SHOWED CONSUMER SPENDING WAS MORE ROBUST THAN EXPECTED AND FAVORABLE FRENCH INDUSTRIAL PRODUCTION DATA PROMPTED HOPES IN LONDON THAT THE CONTINENT'S RECOVERY FROM RECESSION COULD BE TAKING HOLD MANY BRITISH COMPANIES RELY ON EUROPEAN TRADE IN FRANKFURT THE DAX 30STOCK INDEX ROSE 1580 POINTS TO 204256 SURPASSING THE PREVIOUS ALLTIME HIGH OF 203332 REACHED MONDAY ADVANCERS LED DECLINERS 264 AFTER A RETREAT THE PREVIOUS DAY THE INDEX RESUMED ITS MONTHLONG RALLY FUELED BY STRONGER BOND PRICES AND HEAVY LIQUIDITY AMONG INSTITUTIONAL INVESTORS SOME ACTION WAS RELATED TO HOPES FOR LOWER INTEREST RATES WHEN THE GERMAN CENTRAL BANK MEETS TODAY AFTER A MIDSESSION DROP THE DAX CONTINUED TO GAIN GROUND TO END AT ITS INTRADAY PEAK LESS THAN A POINT AWAY FROM THE RECORD INTRADAY HIGH OF 204343 ALSO SET MONDAY IN MADRID STOCK PRICES ALSO BOUNDED HIGHER ON OPTIMISM THAT EUROPEAN LENDING RATES WILL DECLINE IN COMING MONTHS THOUGH THE MARKET WAS DIVIDED ABOUT A GERMAN RATE CUT TODAY A REDUCTION YESTERDAY BY SPAIN'S CENTRAL BANK IN ONEYEAR BILLS' MARGINAL YIELD ADDED TO THE BOURSE'S BULLISH SENTIMENT IN PARIS FOLLOWING A SERIES OF LATEAFTERNOON TECHNICAL DELAYS SHARES ENDED SLIGHTLY HIGHER IN MILAN STOCKS ENDED HIGHER LED AGAIN BY THE AUTO SECTOR FOLLOWED BY TELECOMMUNICATIONS SHARES IN STOCKHOLM PRICES FELL BROADLY DRAGGED DOWN BY SHARP DECLINES AMONG TELECOMMUNICATIONS AND AUTOMOTIVE STOCKS IN ZURICH THE RECENT CONSOLIDATION CONTINUED FOLLOWING A RALLY AND STOCKS EDGED UP IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SLIPPED 230 POINTS TUESDAY ROSE 10351 TO 2017342 IN TRADING THURSDAY THE NIKKEI INDEX ROSE 2380 POINTS TO CLOSE THE MORNING SESSION AT 2019722 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 220 MILLION SHARES UP FROM 2069 MILLION SHARES A DAY EARLIER LOSERS NARROWLY TOPPED GAINERS 494483 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 423 POINTS TUESDAY ROSE 340 TO 164786 IN SYDNEY SHARE PRICES FELL ACROSS THE BOARD WITH THE MAIN INDEX TUMBLING 11 ON PROFITTAKING ESPECIALLY AMONG LARGERCAPITALIZED STOCKS IN A CORRECTION FOLLOWING A BULL RUN BUT IN HONG KONG AFTER AN INITIAL SLUMP SHARES FINISHED A VOLATILE SESSION WITH SOLID GAINS AS BARGAINHUNTERS BOUGHT FOLLOWING THE PREVIOUS SESSION'S HUGE DROP WHICH WAS A TECHNICAL CORRECTION TO THE RECENT HUGE RALLY IN SINGAPORE EQUITIES CONSOLIDATED MODERATELY AND PRICES WERE DOWN AT THE FINISH PARTLY ON PROFITTAKING IN TAIPEI STOCKS LOST GROUND AS INVESTORS REMAINED SIDELINED FOLLOWING THE PREVIOUS DAY'S PLUNGE IN MANILA SHARES RECOVERED IN BUSY TRADING AS FOREIGN BUYERS ENTERED THE MARKET MORE AGGRESSIVELY IN SEOUL PRICES DECLINED AS BUYERS SHIFTED THEIR ATTENTION TO ISSUES RERGERS AND ACQUISITIONS AMONG CORPORATE DEVELOPMENTS IN LONDON IMPERIAL CHEMICAL INDUSTRIES PLUNGED 18 PENCE OR 25 TO 709 PENCE 1055 THE STOCK FELL ON TALK THAT THE BROKERAGE FIRM JAMES CAPEL SECURITIES HAD DOWNGRADED THE BIG CHEMICAL COMPANY BUT CAPEL SAID IT DIDN'T DOWNGRADE THE STOCK RATHER REITERATED ITS SELL RECOMMENDATION EARLIER THIS WEEK NIKKO SECURITIES OFFERED THE SAME ADVICE IN FRANKFURT HOECHST ROSE 27 MARKS TO 28350 MARKS 17265 THE CHEMICAL COMPANY'S PHARMACEUTICAL SALES FOR THE FIRST EIGHT MONTHS EDGED UP 06 TO 607 BILLION MARKS 369 BILLION REFLECTING A RECOVERY IN FOREIGN SALES WHICH CLIMBED 26 IN GERMANY SALES DROPPED 69 IN PARIS UNION DES ASSURANCES DE PARIS FINISHED UNCHANGED AT 631 FRENCH FRANCS 10873 THE INSURER'S FIRSTHALF GROUP PROFIT ROSE 15 TO 11 BILLION FRANCS 1896 MILLION FROM A YEAR EARLIER POSITIONING THE COMPANY TO MEET ITS PREDICTION FOR 1993 EARNINGS BETWEEN 15 BILLION AND 2 BILLION FRANCS FIRSTHALF PREMIUM INCOME FROM INSURANCE ACTIVITIES ROSE 85 TO 7118 BILLION FRANCS 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 9310210102 931021 WHO'S NEWS RELIANCE ELECTRIC CO RELIANCE ELECTRIC CO CLEVELAND LJ HENDRIX JR 51 YEARS OLD EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF INDUSTRIAL AND TELECOMMUNICATIONS EQUIPMENT RESIGNED FROM THOSE POSTS AND AS A DIRECTOR OF THE COMPANY EFFECTIVE OCT 31 A 20YEAR VETERAN OF RELIANCE ELECTRIC MR HENDRIX WILL JOIN PRIVATE INVESTMENT FIRM CLAYTON DUBILIER & RICE INC NEW YORK AS A PRINCIPAL A RELIANCE SPOKESMAN SAID THE COMPANY DOESN'T INTEND TO NAME A SUCCESSOR BUT DUDLEY P SHEFFLER VICE PRESIDENT OF RELIANCE ELECTRIC AND PRESIDENT OF THE RELIANCE COMM/TEC UNIT WOULD BE NOMINATED TO FILL MR HENDRIX'S BOARD SEAT 9310210101 931021 WHO'S NEWS IMCERA GROUP INC IMCERA GROUP INC NORTHBROOK ILL THE HEADS OF THIS COMPANY'S THREE OPERATING UNITS WERE PROMOTED TO SENIOR VICE PRESIDENTS OF THE PARENT COMPANY FROM VICE PRESIDENTS THEY ARE WILLIAM J MERCER 45 YEARS OLD HEAD OF THE PITMANMOORE UNIT ROBERT G MOUSSA 47 OF THE MALLINCKRODT MEDICAL UNIT AND MACK G NICHOLS 55 OF THE MALLINCKRODT SPECIALTY CHEMICALS SUBSIDIARY IMCERA IS A HEALTHCARE PRODUCTS AND SPECIALTY CHEMICAL CONCERN 9310210100 931021 CREDIT MARKETS WORLD BANK'S OFFERING IN GERMAN MARKS SHOWS GLOBAL BONDS' APPEAL TO YIELDHUNGRY INVESTORS BY LESLIE SCISM AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WITH THE 30YEAR US TREASURY BOND YIELD BELOW 6 MANY INVESTORS HERE ARE LOOKING TO GREENER PASTURES ONE OF THE GREENEST THESE DAYS IS GERMANY WHERE INVESTORS WORLDWIDE ARE BETTING THAT INTEREST RATES HAVE MUCH FURTHER TO FALL YESTERDAY THE WORLD BANK FOUND PLENTY OF BUYERS FOR THE FIRST GLOBALBOND ISSUE DENOMINATED IN GERMAN MARKS THE BANK SOLD THREE BILLION MARKS 183 BILLION OF THE 10YEAR NOTES PRICED TO YIELD 59 006 PERCENTAGE POINT MORE THAN THE BENCHMARK 10YEAR GERMAN GOVERNMENT BOND OR BUND GLOBAL BONDS ARE DESIGNED TO BE TRADED IN ANY OF THE WORLD'S MAJOR MARKETS THEY USUALLY ARE ISSUED IN QUANTITIES OF 1 BILLION OR MORE AND COME FROM WELLKNOWN AND HIGHLY RATED ISSUERS HOWEVER ARGENTINA'S PLANNED GLOBAL BONDS WOULD BE THE FIRST TO CARRY JUNKBOND RATINGS AND POSSIBLY THE FIRST TO COME IN AN AMOUNT LESS THAN 1 BILLION YESTERDAY'S OFFERING CAME AT THE SAME TIME AS A 500 MILLION TWOPART YANKEE BOND OFFERING FROM A SUBSIDIARY OF THE AUSTRALIAN STEEL MINING AND PETROLEUM COMPANY BROKEN HILL PROPRIETARY CO THAT OFFERING ALSO WAS SNAPPED UP MORE PROOF OF INVESTOR DEMAND FOR HIGHERYIELDING FOREIGN SECURITIES A YANKEE BOND IS A BOND SOLD BY A FOREIGN COMPANY IN THE US AND IS OFTEN DENOMINATED IN DOLLARS MEANWHILE THE US TREASURY MARKET WAS QUIET THE BENCHMARK 30YEAR BOND ROSE MORE THAN 1/4 POINT OR MORE THAN 250 FOR A BOND WITH 1000 FACE VALUE TO 105 31/32 FOR A YIELD OF 582 DOWN FROM 584 TUESDAY INVESTORS OFTEN ARE WILLING TO SACRIFICE SOME YIELD IN RETURN FOR A GLOBAL BOND BECAUSE OF ITS EXTRAORDINARILY GOOD LIQUIDITY THIS MEANS THAT IT IS EASY TO BUY OR SELL THE BONDS ON SHORT NOTICE DEMAND WAS SO STRONG FOR THE WORLD BANK OFFERING THAT THE YIELD FOR THE ISSUE DROPPED BY THE END OF THE DAY TO 587 AS THE YIELD SPREAD OVER GERMAN BUNDS NARROWED TO 003 PERCENTAGE POINT MUCH OF THE DEMAND FROM INVESTORS OUTSIDE GERMANY WAS VERY STRONG THE UNDERWRITERS SAID THE BONDS WERE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC AND DEUTSCHE BANK AG GLOBAL ISSUES TEND TO ATTRACT THE SOPHISTICATED INSTITUTIONAL INVESTOR CROWD BUT YESTERDAY'S OFFERING DREW DEMAND FROM MANY WEALTHY INDIVIDUAL INVESTORS ACCORDING TO KENNETH LAY DIRECTOR OF FINANCIAL OPERATIONS AT THE WORLD BANK THE GLOBAL BONDS WERE SOLD IN DENOMINATIONS OF 5000 MARKS DEMAND FROM INDIVIDUALS FOR THIS TYPE OF FOREIGN ISSUE IS SOMEWHAT OF A RARITY BECAUSE IT IS DIFFICULT FOR INDIVIDUALS TO GET GOOD RATES TO CONVERT THE FOREIGN CURRENCY INTO DOLLARS UNLESS THEY BUY IN VERY LARGE QUANTITIES ACCORDING TO MR LAY HOWEVER THE WORLD BANK HAS ARRANGED FOR INVESTORS IN YESTERDAY'S GLOBAL ISSUE TO RECEIVE MOREATTRACTIVE WHOLESALE DOLLAR EXCHANGE RATES FROM CITIBANK A UNIT OF CITICORP THAT DEMAND FROM NONGERMAN INVESTORS WOULD BE STRONG ENOUGH TO PUSH THE YIELD ON THE BONDS NEAR THE LEVELS OF DEBT SOLD BY THE GERMAN GOVERNMENT IS REMARKABLE WHEN CURRENCY RISKS ARE CONSIDERED THAT'S BECAUSE FOR FOREIGN INVESTORS EXCHANGERATE FLUCTUATIONS OFTEN ACCOUNT FOR MUCH OF THE GAINS OR LOSSES IN FOREIGN BOND INVESTMENTS EVEN IF INTEREST RATES ARE DROPPING IN GERMANY A RISING MARK VS OTHER FOREIGN CURRENCIES COULD MEAN BIG LOSSES FOR FOREIGN INVESTORS EVEN AS GERMAN INVESTORS CLEAN UP AS MUCH AS HALF THE ISSUE WENT TO NORTH AMERICAN AND ASIA INVESTORS THE UNDERWRITERS SAID WHILE THE REST WENT TO EUROPEAN INVESTORS NEITHER THE WORLD BANK NOR SALOMON BROTHERS WOULD PROVIDE A DETAILED BREAKDOWN OF HOW MUCH WENT TO GERMAN INVESTORS BUT IT SEEMED THAT MANY OF THESE FOREIGN INVESTORS WEREN'T TOO WORRIED ABOUT THE CURRENCY OUR FEELING IS THAT THE BUNDESBANK GERMANY'S CENTRAL BANK WILL LOWER RATES SAID SEAN CASEY CHIEF INVESTMENT EXECUTIVE WITH CHASE MANHATTAN PRIVATE BANK THIS IS A WAY TO PLAY THE GERMAN BOND MARKET HE SAID THIS ISSUE IS IN THE RIGHT MARKET AT THE RIGHT TIME IT WAS SNAPPED UP YESTERDAY THE BENCHMARK BUND YIELDED 584 BY THE END OF EUROPEAN TRADING DOWN FROM 586 WHILE ITS PRICE ROSE 013 POINT TO 10113 MR CASEY PREDICTS THAT THE YIELD WILL DROP TO 5 OVER THE NEXT YEAR IN THE US 10YEAR NOTES YIELDED JUST 524 BY LATE YESTERDAY DOWN FROM 525 ON TUESDAY INVESTORS HAVE BEEN DRAWN TO THE WORLD BANK BECAUSE OF ITS STRONG REPUTATION AS A SAAVY BORROWER AND ITS HIGHLY RATED CREDIT THE WORLD BANK HAS BEEN A LEADER IN ISSUING GLOBAL BONDS COUNTING YESTERDAY'S OFFERING THE BANK HAS SOLD 14 GLOBALBOND ISSUES SINCE LAUNCHING THE FIRST ONE EVER IN 1989 OF THE EARLIER OFFERING FOUR WERE DENOMINATED IN JAPANESE YEN AND NINE IN US DOLLARS ALL OF THESE OFFERINGS HAVE CARRIED THE HIGHEST CREDIT RATINGS FROM BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP ALTHOUGH YESTERDAY'S OFFERING HAS NOT YET BEEN RATED ACCORDING TO A WORLD BANK OFFICIAL US COMPANIES SOLD MORE THAN 2 BILLION OF NEW CORPORATE BONDS YESTERDAY INCLUDING A TWOPART 585 MILLION OFFERING OF JUNK BONDS FROM HARRIS CHEMICAL NA A UNIT OF HARRIS CHEMICAL GROUP INC AND A 100 MILLION OFFERING FROM THE CANADIAN SUBSIDIARY OF THE SAME COMPANY CHRYSLER CORP'S BONDS CLOSED THE DAY UNCHANGED EVEN AFTER MOODY'S RAISED THE SENIOR DEBT RATINGS OF CHRYSLER AND CHRYSLER FINANCIAL CORP TO BAA2 FROM BAA3 THE UPGRADE WAS ALREADY PRICED INTO THE MARKET ONE TRADER NOTED EARLIER THIS MONTH S&P UPGRADED THE SENIOR BONDS TO TRIPLEB THERE WAS STRONG DEMAND FOR BHP FINANCE USA LTD'S 500 MILLION TWOTRANCHE OFFERING AS INVESTORS CONTINUE TO VALUE HIGHQUALITY PAPER FROM INFREQUENT ISSUERS AN INVESTOR SAID A UNIT OF AUSTRALIANBASED BROKEN HILL PROPRIETARY BHP TAPPED THE US BOND MARKET FOR THE FIRST TIME LAST NOVEMBER WITH A 750 MILLION THREETRANCHE OFFERING THAT DEAL HAD MATURITIES OF FIVE 10 AND 20 YEARS YESTERDAY'S OFFERING INCLUDED 300 MILLION OF SEVENYEAR NOTES PRICED AT 99750 TO YIELD 5669 OR 068 PERCENTAGE POINT OVER TREASURYS AND ARE NONCALLABLE FOR FIVE YEARS THE COMPANY ALSO SOLD 200 MILLION OF 20YEAR DEBENTURES AT 9955 TO YIELD 6791 OR 078 PERCENTAGE POINT ABOVE TREASURYS AND NONCALLABLE FOR SIX YEARS BOTH PARTS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P WERE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO WHICH ALSO LEADMANAGED LAST YEAR'S OFFERING UNINSPIRED TRADERS AND INVESTORS WERE CONTENT TO LET THE PRICES OF TREASURY SECURITIES DRIFT YESTERDAY LEAVING THE MARKET TO FINISH STEADY TO MODESTLY HIGHER THE 30YEAR BOND ENDED THE EXTREMELY QUIET SESSION WITH A GAIN OF 9/32 FOR A PRICE OF 105 31/32 TO YIELD 582 THE ONLY NEWS OF THE DAY WAS FROM THE TREASURY DEPARTMENT WHICH ANNOUNCED IT PLANS TO SELL 165 BILLION IN TWOYEAR NOTES NEXT TUESDAY AND 110 BILLION IN FIVEYEAR NOTES NEXT WEDNESDAY THE SIZE OF THE PLANNED TWOYEAR NOTE OFFERING WAS 500 MILLION MORE THAN IN THE SEPTEMBER AUCTION THE BOOST COMES AFTER ANOTHER RISE IN THE WEEKLY BILL AUCTIONS ANNOUNCED TUESDAY BY THE TREASURY WHICH TOOK THE THREE AND SIXMONTH BILL SALE UP TO 26 BILLION AS RECENTLY AS MIDSEPTEMBER THE WEEKLY BILL SALE TOTALED JUST 224 BILLION THE INCREASES IN SHORTEND SUPPLY HAVE NOT CREATED MUCH OF A DRAG ON THAT SECTOR OF THE MARKET PLAYERS SAID THE TWOYEAR NOTE YIELD WAS UNCHANGED YESTERDAY AT 281 WHILE THE FIVEYEAR NOTE YIELD DROPPED SLIGHTLY TO 462 FROM 464 THE ADDED SUPPLY IS NOT HAVING ANY REAL ADVERSE EFFECTS AT LEAST FOR NOW SAID MARCELLO FRUSTACI A TRADER AT DAIWA SECURITIES AMERICA INC A NUMBER OF PLAYERS NOTED TREASURY SECURITIES ALSO HAVE BEEN RELATIVELY IMPERVIOUS TO WIDESPREAD EXPECTATIONS THAT THE ECONOMY WILL BE PUTTING IN A BETTER PERFORMANCE THROUGH THE END OF THE YEAR SHORTTERM SECURITIES SEEM TO BE BULLETPROOF SAID CAREY LEAHEY ECONOMIST AT LEHMAN BROTHERS INC ADDING THAT INVESTORS ARE NOT CONCERNED BY REPORTS OF STRONGER GROWTH IN THE THIRD AND FOURTH QUARTER PART OF THE REASON THE MARKET HAS BEEN ABLE TO BRUSH ASIDE SIGNS THAT THE ECONOMY MAY BE PICKING UP STEAM HAS BEEN THE FAVORABLE INFLATION NEWS OF THE PAST FEW MONTHS AND LOOKING AHEAD INVESTORS HAVE ALSO BEEN REASSURED BY EXPECTATIONS THAT EVEN IF GROWTH DOES SURGE THROUGH THE END OF 1993 THE ECONOMY WILL RUN INTO A BRICK WALL AS IT HEADS INTO NEXT YEAR INVESTORS FEAR RAPID ECONOMIC GROWTH BECAUSE IT COULD LEAD TO INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN MUNICIPAL BONDS WHICH STRENGTHENED AFTER SLIPPING ON PROFITTAKING IN THE LAST TWO SESSIONS WERE UNCHANGED TO 3/8 POINT HIGHER AMONG ACTIVELY TRADED ISSUES VALDEZ ALASKA'S 55 OF 2028 MARINETERMINAL REVENUE REFUNDING BONDS FINISHED 3/8 FIRMER AT 100 1/2 TO 100 5/8 YIELDING 546 IN THE PRIMARY MARKET ISSUANCE SLOWED SUBSTANTIALLY AFTER FASTPACED PRICINGS OF MORE THAN 1 BILLION TUESDAY HAWAII'S 5722 MILLION NEWMONEY AND REFUNDING GENERAL OBLIGATION BONDS WERE PRICED BY A MERRILL LYNCH & CO GROUP AND GIVEN YIELDS THAT RANGE FROM 34 IN 1996 TO 495 IN 201113 MORTGAGE SECURITIES WERE FIRM YESTERDAY AS MANY TRADERS REPORTED LITTLE OR NO ACTIVITY SECURITIES THAT DID RECEIVE SOME INTEREST WERE THE 9 COUPONS FROM THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION GINNIE MAE 9 ISSUES WERE UP 2/32 AT 106 9/32 AMONG OTHER ISSUES GINNIE MAE 6 ISSUES FOR NOVEMBER DELIVERY WERE UP 1/4 POINT AT 99 14/32 FEDERAL HOME LOAN MORTGAGE CORP 6 ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 6 ISSUES WERE BOTH UP 3/32 AT 99 11/32 AND 99 2/32 RESPECTIVELY FIFTEENYEAR MORTGAGE SECURITIES KNOWN AS THE INTERMEDIATE OR DWARF SECTOR BY WALL STREET TRADERS OUTPERFORMED 30YEAR ISSUES AMONG 15YEAR 6 ISSUES FOR NOVEMBER DELIVERY GINNIE MAES WERE UP 9/32 AT 101 12/32 FREDDIE MAC GOLDS AND FANNIE MAES WERE BOTH UP 1/4 POINT AT 101 5/32 AND 100 31/32 RESPECTIVELY 9310210099 931021 LEISURE & ARTS THE MOBILE GUIDE THE UNKNOWN VIP GETS AEROFLOT OFF THE GROUND BY KARL TARO GREENFELD PERHAPS THE GRADUAL COLLAPSE OF AEROFLOT PREVIOUSLY A DEPENDABLE IF STATISTICALLY THE WORLD'S MOST DANGEROUS AIRLINE IS JUST A SIDE EFFECT OF BORIS YELTSIN'S SHOCK THERAPY INTRODUCTION OF FREE MARKET REFORMS TO THE RUSSIAN ECONOMY FLIGHTS SELDOM TAKE OFF ON TIME SOMETIMES FOR LACK OF FUEL SOMETIMES FOR LACK OF SPARE PARTS BUT USUALLY FOR NO APPARENT REASON AT ALL POSTED SCHEDULES HAVE NO RELATION TO REAL DEPARTURE TIMES BUT THOSE FEW FLIGHTS THAT DO GET AIRBORNE ARE REMARKABLY CHEAP AN EIGHTHOUR 6000MILE FLIGHT FROM VLADIVOSTOK TO MOSCOW COSTS THE RUBLE EQUIVALENT OF 6 CREATING THE ABSURDITY IN WHICH IT IS CHEAPER TO TRANSPORT GOODS EVEN APPLES OR CHICKENS BY AIR RATHER THAN BY RAIL OR TRUCK FOR THE THOUSANDS OF MERCHANTS SEEKING TO BRING POTATOES TO MOSCOW IT MAKES SENSE TO WAIT DAYS MAYBE WEEKS FOR A FLIGHT THE SURCHARGE FOR EXCESS BAGGAGE IS NOMINAL EVEN IF THAT BAGGAGE IS THREE THOUSAND PAIRS OF POLYESTER SOCKS VLADIVOSTOK INTERNATIONAL AIRPORT IS A DARK CAVERNOUS POORLY VENTILATED TRIBUTE TO BREZHNEVERA SOCIALIST ARCHITECTURE AND GRASSROOTS CAPITALISM WHEN I ARRIVED THERE AT 6 AM TO CHECK IN FOR MY 7 AM AEROFLOT FLIGHT TO KHABAROVSK CONNECTING WITH A 110 PM FLIGHT TO NIIGATA JAPAN MERCHANTS AND FARMERS EAGER TO DELIVER GOODS TO MARKET WERE CLOGGING THE TERMINAL WITH WIRE CAGES BULGING WITH LIVE CHICKENS BARRELS OF APPLES SACKS OF POTATOES AND BALES OF FABRIC MY FELLOW TRAVELERS HAD ESTABLISHED A MINICIVILIZATION CAMPING ATOP IMMENSE TWOSTORYHIGH PILES OF GOODS WHERE THEY COULD SLEEP PLAY CHESS AND HEAT GOULASH ON PROPANE BURNERS THEY HAD EVIDENTLY BEEN THERE FOR DAYS THERE WERE NO AEROFLOT PERSONNEL IN SIGHT THE ABANDONED CHECKIN COUNTERS LOOKED LIKE RUINS FROM AN ANCIENT CIVILIZATION I WANDERED ABOUT LOOKING FOR SOMEONE WHO COULD SPEAK ENGLISH A GENTLEMEN IN A FUR COAT LOOKED AT MY TICKET AND SAID NYET HE WOULDN'T ELABORATE UPSTAIRS THROUGH A FOGGED WINDOW I COULD MAKE OUT DOZENS OF AEROFLOT PLANES ON THE DARKENED ICY RUNWAY NONE OF WHICH APPEARED READY TO TAKE OFF AS 7 AM LOOMED CLOSER I VENTURED INTO A RESTRICTED AREA AND FOUND A MECHANIC IN A JUMPSUIT WHO WAS SAVVY ENOUGH TO NOTICE THAT MY TICKET HAD BEEN PAID FOR IN HARD CURRENCY I HAD PAID ABOUT US148 FOR A FLIGHT THAT A RUSSIAN CITIZEN WOULD HAVE PAID ABOUT 2000 RUBLES FOR OR ABOUT THE EQUIVALENT OF US3 HE LED ME TO AN EXCLUSIVE INTERNATIONAL TERMINAL DESIGNATED VIP BUT AFTER POLITELY HOLDING OPEN THE HEAVY WOODEN DOOR FOR ME HE VANISHED THE VIP LOUNGE WAS A SMALL FRIGID ROOM WITH AN OUTOFSERVICE WET BAR AND FIVE SOFAS FOR VIPS THOSE INTERNATIONAL TRAVELERS WHO LIKE ME HAD SHELLED OUT PRECIOUS HARD CURRENCY MY FELLOW VIPS THAT MORNING WERE FOUR CHINESE IN THICK PARKAS ASLEEP ON THE SOFAS LITTERED AROUND THE SLEEPING MEN WERE EMPTY BEER AND JUICE CANS AND PLASTICFOAM INSTANT SOUP CUPS I ESTIMATED THE MESS AS TWO DAYS WORTH OF DEBRIS I OPENED UNLOCKED DOORS AND FOUND NOTHING BUT EMPTY BARREN OFFICES I KNOCKED ON THE LOCKED DOORS NO RESPONSE SAVE THE WAKING OF ONE OF THE CHINESE HE SAT UP RUBBED HIS EYES STUDIED MY TICKET FOR A MOMENT SHOOK HIS HEAD AND POINTED TO ANOTHER LOCKED DOOR I JIGGLED THAT DOOR HANDLE AND KICKED AT THE HARD WOOD AN ANGRY VOICE FINALLY CALLED OUT FROM WITHIN PROGRESS THE DOOR WAS UNLATCHED AND I ENTERED THE DARKENED OFFICE THIS ONE FURNISHED WITH A SOFA WHERE A FULLY UNIFORMED AEROFLOT OFFICIAL HAD MADE A BED COMPLETE WITH SHEETS AND BLANKETS BUT SHE WAS IN UNIFORM A VERY GOOD SIGN I SHOWED HER MY TICKET CLEARLY ANNOYED SHE GRABBED THE TATTERED BLUE AND WHITE TICKET AND SHOUTED AT ME IN RUSSIAN I DIDN'T UNDERSTAND I POINTED TO THE 7 AM DEPARTURE TIME ON MY TICKET AND SHE DID SOME MORE SHOUTING SHE SAYS THE SEVEN O'CLOCK FLIGHT IS CANCELED CAME A VOICE IN SMOOTH EVEN ENGLISH FROM BEHIND ME I TURNED AND SAW A YOUNG MAN IN HIS EARLY 20S DRESSED IN A WELLCUT STYLISH PINSTRIPED SUIT HE WORE AN EXPENSIVE JAPANESE WATCH HIS BLACK HAIR WAS CUT IN A MODISH WAVE SHE SAYS THERE IS A FLIGHT AT TENTHIRTY HE TRANSLATED AS THE AEROFLOT OFFICIAL CONTINUED MAYBE MAYBE I ASKED HE SHRUGGED CONSIDERING THE CONDITIONS IN THE TERMINAL AND THE CHINESE MEN IN THE VIP LOUNGE WHO APPEARED TO BE IN SOME KIND OF VIP PURGATORY I HAD MY DOUBTS ABOUT THE 1030 AM FLIGHT IN FACT I HAD MY DOUBTS ABOUT ANY FLIGHTS EVER EMANATING FROM THIS AIRPORT I IMAGINED SPENDING ANOTHER WEEKEND IN VLADIVOSTOK AN ICY WINDY HILLY PORT TOWN GALVESTON MEETS THE GULAG THE SLICK RUSSIAN IN THE SUIT ELABORATED SHE SAYS THERE IS NO FUEL FOR THE SEVEN O'CLOCK FLIGHT BUT THAT THERE COULD BE FUEL FOR THE TENTHIRTY HE PAUSED FOR A MOMENT AGAIN MAYBE THEN MY NEW RUSSIAN FRIEND TOOK MY SHOULDER AND GENTLY LED ME FROM THE OFFICE THROUGH THE VIP LOUNGE I AM DMITRI HE INTRODUCED HIMSELF IF YOU ARE INTERESTED I HAVE A PLANE THAT CAN TAKE YOU TO KHABAROVSK HE DUG A KEY FROM HIS PANTS POCKET AND UNLOCKED A DOUBLE METAL DOOR WHICH OPENED ONTO THE SNOWLINED RUNWAY THERE LIT FROM BELOW BY TARMAC LIGHTS AND GLISTENING IN THE DAWN WAS A CLEAN SILVER THREEENGINE FULLY GASSEDUP AEROFLOT JET FOR US140 DMITRI EXPLAINED THIS PLANE COULD TAKE ME TO KHABAROVSK IMMEDIATELY OR DMITRI SHRUGGED YOU CAN TAKE YOUR CHANCES ON THE TENTHIRTY I OFFERED HIM 10000 JAPANESE YEN ABOUT US90 HE WHIPPED OUT A CALCULATOR AND DOUBLECHECKED MY CURRENCY CONVERSION WE HAD A DEAL I BOARDED A PLANE THE SIZE OF A BOEING 707 THE ONLY PASSENGER THIS IS A SPECIAL CHARTER SERVICE FOR SOPHISTICATED BUSINESSMEN DMITRI TOLD ME AFTER I WAS SEATED WE WANT TO PROVIDE AN ATMOSPHERE WHERE A SOPHISTICATED BUSINESSMAN CAN TRAVEL IN STYLE WE CHARTER FLIGHTS AND OUR FLIGHTS ALWAYS TAKE OFF ON TIME BUT THIS IS AN AEROFLOT PLANE I POINTED OUT AS THE PILOT COPILOT AND NAVIGATOR WALKED DOWN THE AISLE TO THE COCKPIT IN THEIR GREYBLUE AEROFLOT UNIFORMS THE TWO STEWARDESSES IN THE GALLEY WERE ALSO IN UNIFORM I FLEW FROM VLADIVOSTOK TO KHABAROVSK AS THE ONLY PASSENGER IN AN AEROFLOT JET THAT COULD HAVE SEATED 120 AND WHO KNOWS HOW MANY CHICKENS POTATOES APPLES OR BOLTS OF RAYON THE STEWARDESS BRIEFED BY DMITRI TO PROVIDE THE KIND OF SERVICE A SOPHISTICATED BUSINESSMAN EXPECTED DUTIFULLY ROLLED A DRINKS TROLLEY DOWN THE AISLE AND OFFERED ME A COCACOLA AND SOME CAVIAR I DECLINED WHAT DMITRI HAD DONE HE TOLD ME WAS SIMPLY CHARTER THE 700 AM FLIGHT APPARENTLY ONE HARD CURRENCY PAYING SOPHISTICATED BUSINESSMAN WAS WORTH AN ENTIRE JETLOAD OF RUBLEPAYERS OUT OF MY US90 DMITRI COULD PAY OFF THE LOCAL AEROFLOT OFFICIALS GIVE A TASTE TO THE FLIGHT CREW AND KEEP A SLICE FOR HIMSELF AS IT TURNED OUT MY FLIGHT FROM KHABAROVSK TO NIIGATA WAS DELAYED THREE HOURS BUT NO FLIGHTS BESIDE DMITRI'S CHARTER FLEW FROM VLADIVOSTOK TO KHABAROVSK THAT DAY I HOPE YOU HAD A PLEASANT FLIGHT DIMITRI SAID AS I DISEMBARKED AND TELL YOUR FRIENDS ABOUT ME MR GREENFELD IS TOKYO CORRESPONDENT FOR THE NATION HIS BOOK SPEED TRIBES CHILDREN OF THE JAPANESE BUBBLE IS DUE OUT NEXT YEAR FROM HARPERCOLLINS 9310210098 931021 LEISURE & ARTS BOOKSHELF SOCIALISM'S PURITAN ETHIC BY JOSEPH A GRUNDFEST THAT GIANT SUCKING SOUND YOU HEAR MAY NOT BE BLUECOLLAR JOBS HEADED TO MEXICO AFTER ALL ACCORDING TO DEREK BOK HARVARD'S RETIRED PRESIDENT IT IS THE SOUND OF OUR BEST YOUNG BRAINS HEADING OFF TO LAW SCHOOL MEDICAL SCHOOL OR BUSINESS SCHOOL WHEN MORE OF THEM SHOULD BE EMBARKING ON CAREERS AS TEACHERS PROFESSORS OR CIVIL SERVANTS MR BOK'S COMPLAINT IS SIMPLE AND IN THE COST OF TALENT HOW EXECUTIVES AND PROFESSIONALS ARE PAID AND HOW IT AFFECTS AMERICA FREE PRESS 347 PAGES 2295 HE OFFERS A BOOK THAT IS HALF LAMENT HALF PRAYER AND TRUE TO HARVARD'S ROOTS ALL PURITAN IN ITS LOFTIER SUGGESTIONS FOR SOCIAL REFORM MR BOK DOCUMENTS HIS CASE IN DETAIL AND WITH GRACE INVARIABLY PROPOSING HIGHMINDED REMEDIES AS MR BOK EXPLAINS HUGE SALARY GAPS HAVE DRAMATICALLY IMPROVED THE QUALITY OF LAWYERS DOCTORS AND CORPORATE EXECUTIVES WHILE REDUCING THE CALIBER OF TEACHERS AND CIVIL SERVANTS AND DISTRACTING STUDENTS FROM SCHOLARSHIP BUT ISN'T THIS HOW MARKETS ARE SUPPOSED TO WORK AREN'T HIGHER WAGES A SIGNAL OF GREATER DEMAND RELATIVE TO AVAILABLE SUPPLY DON'T WE WANT OUR BEST STUDENTS TO DEVOTE THEMSELVES TO AREAS WHERE THEY CAN CONTRIBUTE THE GREATEST VALUEADDED TO SOCIETY YES SAYS MR BOK IF LABOR MARKETS WORK COMPETITIVELY BUT MR BOK SEES MARKET FAILURE EVERYWHERE AND THEREFORE REJECTS THE SOCIAL VALUE OF CURRENT MARKET SIGNALS TO ADDRESS THESE DISTORTIONS MR BOK PROPOSES A SERIES OF MICRO REFORMS THAT RANGE FROM THE MAINSTREAM TO THE IMPROBABLE HE VOICES CAUTIOUS SUPPORT FOR MANAGED HEALTH CARE ALONG LINES BROADLY SIMILAR TO THE CLINTON PLAN BUT PREFERS A GOVERNMENTRUN SYSTEM WITH CAPS ON NATIONAL HEALTH CARE EXPENDITURES HE ALSO SUPPORTS STRONG LIMITS ON LAWYERS' CONTINGENCY FEES BUT TO ASSURE ACCESS TO LEGAL SERVICES BY THE POOR HE URGES WIDESPREAD USE OF PREPAID LEGAL SERVICE PLANS WITH INCREASED CONGRESSIONAL FUNDING FOR POVERTY LAW OFFICES AS FOR EXECUTIVES MR BOK RECOMMENDS MORE AGGRESSIVE SALARY NEGOTIATIONS BY TRULY INDEPENDENT DIRECTORS MEASURES OF THE SORT ALREADY URGED BY THE SECURITIES AND EXCHANGE COMMISSION AND MANY SHAREHOLDER GROUPS BY INCREASING COMPETITION MR BOK HOPES TO REDUCE PROFESSIONAL SALARIES AND THEREBY TEMPER STUDENTS' FINANCIAL INCENTIVES TO HEAD OFF TO PROFESSIONAL SCHOOL IN THEORY THIS IS FINE BUT ARE POLITICIANS REALLY ABOUT TO TAKE ON THE LOBBIES THAT PROTECT HIGH PROFESSIONAL EARNINGS MORE CONTROVERSIAL HOWEVER ARE MR BOK'S MACRO REFORMS WHICH INCLUDE A DRAMATIC NEW RATIONALE FOR CLINTONOMICS ON A GRANDER SCALE PRESIDENT CLINTON CALLED FOR HIGHER TOP MARGINAL TAX BRACKETS INSISTING THAT THOSE WHO HE FEELS BENEFITED IN THE '80S WOULD PAY FOR THE '90S MR BOK CALLS FOR EVEN HIGHER TAX RATES AND URGES THESE TAXES ON ALL HUMAN ENDEAVORS NOT JUST ON THE OVERPAID LAWYERS DOCTORS AND CEOS THAT HE CLAIMS TO SEE AMONG US THIS POLICY PRESCRIPTION IS STRONGLY INFLUENCED BY PSYCHOLOGIST ABRAHAM MASLOW A POPULAR GURU OF THE 1960S AND '70S WHO CLAIMED THAT ONCE BASIC MATERIAL REQUIREMENTS OF COMFORT AND WELLBEING WERE ASSURED PEOPLE RESPONDED TO OTHER NONFINANCIAL CONCERNS SUCH AS SELFFULFILLMENT AND PERSONAL GROWTH MR BOK UNCRITICALLY BUYS INTO MR MASLOW'S THEORIES AND FROM THERE LEAPS TO THE CONCLUSION THAT GOVERNMENT SHOULD BE HAPPY TO TAX AWAY LARGE PORTIONS OF INDIVIDUAL EARNINGS BEYOND MR MASLOW'S BASIC REQUIREMENTS WHATEVER THEY MAY BE ACCORDING TO MR BOK THIS INCOMES POLICY WILL REMOVE THE CORROSIVE EFFECTS OF FINANCIAL GAIN FROM MANY STUDENTS' CAREER DECISIONS BECAUSE SIMPLY PUT AFTER PAYING TAXES THERE WON'T BE MUCH FINANCIAL GAIN IN PURSUING ANY HIGHPAYING PROFESSION AT ALL VOILA BUT WHAT OF THE DANGER THAT HIGHER TAXES MIGHT DECREASE PRODUCTIVITY HERE MR BOK ADOPTS A VIEW THAT COULD START A SMALL RIOT AT HIS OWN ECONOMICS DEPARTMENT AND ARGUES THAT SHARPLY HIGHER MARGINAL TAX RATES WON'T HAVE ADVERSE ECONOMIC EFFECTS MR BOK ALSO DOESN'T PRETEND THAT HIGHER MARGINAL RATES WOULD RAISE MUCH REVENUE FOR SOCIAL OR OTHER PROGRAMS IN MR BOK'S WORLD HIGHER MARGINAL TAX BRACKETS ARE GOOD FOR THE SOUL EVEN IF THEY DON'T RAISE A DIME THOUGH THE MORE REVENUE THEY GENERATE THE BETTER MR BOK THEREBY TRANSFORMS A BRAIN DRAIN PROBLEM INTO A RATIONALE FOR A DRAMATIC REFORM OF AMERICAN ECONOMIC AND SOCIAL POLICY MAYBE IT'S A CHEAP SHOT THESE DAYS TO COMPARE ANYONE TO KARL MARX BUT THIS BOOK COMES PERILOUSLY CLOSE TO PUTTING A NEW AGE SPIN ON THE OLD CREDO FROM EACH ACCORDING TO HIS ABILITIES TO EACH ACCORDING TO HIS NEEDS INDEED TO TRANSFORM THE BRAIN DRAIN PROBLEM INTO A RATIONALE FOR A STRICT NEW INCOMES POLICY THAT WOULD AFFECT EVERY AMERICAN IN EVERY WALK OF LIFE IS TO OVERREACT TO A LEGITIMATE CONCERN UNLESS OF COURSE THE BRAIN DRAIN IS MERELY A COVER STORY FOR A MASSIVE TAX RATE HIKE THAT MR BOK WOULD LIKE TO SEE FOR INDEPENDENT REASONS IS AMERICA READY TO SAY THAT BEYOND SOME LEVEL NO ONE HAS A RIGHT TO KEEP VERY MUCH OF WHAT HE EARNS BECAUSE HE DOESN'T REALLY NEED THE MONEY OR DESERVE IT ANYWAY IS AMERICA READY TO TAKE FROM THE RICH EVEN IF IT DOESN'T GIVE TO THE POOR MR BOK IS AND HE'S HOPING YOU WILL FOLLOW HIS LEAD FORGIVE ME IF I LAG MR GRUNDFEST IS A PROFESSOR AT STANFORD LAW SCHOOL AND FORMER COMMISSIONER OF THE SECURITIES AND EXCHANGE COMMISSION 9310210097 931021 LETTERS TO THE EDITOR WHAT THE FDA DOESN'T WANT KNOWN AFTER READING YOUR OCT 4 EDITORIAL ON WHAT MANY OF US TERM THE VITAMIN WARS THIS QUIRKY SENATE CONSERVATIVE GOBBLED ONE TRANQUILITY DIETARY SUPPLEMENT TWO ASPIRIN OVERTHECOUNTER DRUG AND TOOK UP PEN AND PAPER THE ONLY WEAPONS IMMEDIATELY AVAILABLE TO REPLY ALL ISSUES OF SUBSTANCE ASIDE AT LEAST YOU PUT ME IN GOOD COMPANY I MEAN BILL RICHARDSON A MOST RESPECTED LEADER IN THE HOUSE WELLRECOGNIZED FOR HIS TALENTS WHEN APPOINTED BY SPEAKER FOLEY AS DEPUTY WHIP EVEN QUIRKIER THAN I JOHN DINGELL THE HOUSE'S LEADING CRUSADER FOR SCIENTIFIC INTEGRITY THE SCOURGE OF MANY A SCIENTIST THE POX BE ON YOU WALL STREET JOURNAL HERE IS THE TRUTH THERE IS A BATTLE GOING ON BUT NOT BETWEEN HEALTH FADDISTS AND THEIR USUAL BUREAUCRATIC BUDDIES BUT BETWEEN THE ALMOST 100 MILLION AMERICANS WHO USE DIETARY SUPPLEMENTS AND THE OVERLY REGULATORY FDA MACHINE WHOSE 40PLUSYEAR RECORD OF ANIMOSITY AGAINST DIETARY SUPPLEMENTS HAS PROVEN ITSELF NEVER TO BE A FRIEND THE STRENGTH OF THIS CONSUMER MOVEMENT IS MADE PLAIN BY CONGRESSIONAL SUPPORT FOR THE HATCHRICHARDSON LEGISLATION THE DIETARY SUPPLEMENT HEALTH AND EDUCATION ACT WHICH NOW HAS 59 SPONSORS IN THE SENATE AND 136 IN THE HOUSE HERE IS THE TRUTH THE BATTLE IS NOT OVER THE SAFETY OF DIETARY SUPPLEMENTS WE ALL WANT THE PUBLIC TO HAVE ACCESS TO SAFE PRODUCTS THE BATTLE IS NOT OVER THE BURDEN OF PROOF NEEDED FOR SCIENTIFIC SUPPORT OF HEALTH CLAIMS ON DIETARY SUPPLEMENTS WE ALL WANT ACCURATE LABELING NO THE BATTLE IS OVER HOW WE WILL ACHIEVE THESE GOALS THE FDA IN ITS TYPICAL PROREGULATORY STANCE WANTS TO SPEND WETHETAXPAYERS' HARDEARNED GOVERNMENT DOLLARS TO PROMOTE FULL EMPLOYMENT OF THE BUREAUCRACY THEY WANT A NEW SCHEME TO MAKE SUPPLEMENTS FOODS THAT HAVE BEEN USED SAFELY FOR CENTURIES SUBJECTED TO PREMARKET CLEARANCE DID ANYBODY ALERT THE GORE TEAM AS YOUR EDITORIAL SO RIGHTLY REFERENCED THE WAY FDA RIGIDLY APPLIES SUCH PREMARKET CLEARANCE REGIMES TO OTHER INDUSTRIES CAN DRIVE UP PRICES AND MAKE AMERICA'S PRODUCT UNCOMPETITIVE IN THE GLOBAL MARKETPLACE HOW IRONIC AT A TIME WHEN PRESIDENT CLINTON IS STRIVING SO HARD TO FORGE A NEW MARKET THROUGH NAFTA YOU NEED LOOK NO FURTHER THAN THE MEDICAL DEVICE INDUSTRY TO SEE HOW THE FDA'S BROKEN DOOMSDAY MACHINE CLOAKED IN THE GREAT MANTLE OF PUBLIC SAFETY HAS BROUGHT ONE OF THE FEW POSITIVE TRADE BALANCE STORIES TO A SCREECHING HALT HERE IS THE TRUTH BUT THE FDA DOESN'T WANT YOU TO KNOW IT THE FDA CURRENTLY HAS ALL THE POWER IN THE WORLD TO TAKE PRODUCTS WITH FALSE OR MISLEADING CLAIMS OFF THE MARKETPLACE IT HAS ALL THE POWER IN THE WORLD TO REMOVE ADULTERATED TOXIC OR POISONOUS PRODUCTS FROM THE MARKET THE FEDERAL FOOD DRUG AND COSMETIC ACT SEES TO THAT IF IT WANTED TO THE FDA COULD TAKE ACTION TO SEE THAT THE VERY FEW BAD ACTORS IN THE DIETARY SUPPLEMENT MARKETPLACE ARE TAKEN OUT OF THE PLAY MESSRS HATCH AND RICHARDSON ARE NOT TRYING TO PASS LEGISLATION LOWERING THE LABELING BURDEN OF PROOF TO A MODICUM OF SCIENTIFIC SUPPORT INSTEAD OF WIDESPREAD AGREEMENT AS YOU TERMED IT INDEED WE WOULD LIKE TO CHANGE THE FDA'S INTERPRETATION OF SIGNIFICANT SCIENTIFIC AGREEMENT A FAR STRONGER STANDARD THAN WIDESPREAD AGREEMENT BUT A LOOSER STANDARD THAN TOTAL AGREEMENT WHICH HAS LED TO ONLY ONE HEALTH CLAIM BEING ALLOWED FOR DIETARY SUPPLEMENTS WE WOULD LIKE CLAIMS TO BE BASED ON SIGNIFICANT SCIENTIFIC EVIDENCE TO ME A FAR CRY FROM MODICUM WHICH IN MY DICTIONARY MEANS A SMIDGEON CONSUMERS HAVE ALMOST DAILY ACCESS THROUGH THIS PUBLICATION AND OTHERS TO INFORMATION ABOUT NEW STUDIES SHOWING THE BENEFITS OF DIETARY SUPPLEMENTS SHOULD ONE TINY AGENCY PRECLUDE NUTRITIONAL SUPPLEMENT DISTRIBUTORS FROM ADVISING THE PUBLIC ABOUT SUCH INFORMATION I THINK NOT YOU KNOW ONE OF MY MAIN QUIRKS HAS BEEN ALMOST TOTAL SUPPORT FOR YOUR EDITORIAL POLICIES WELL MAKE THAT SIGNIFICANT SUPPORT MMMM MAYBE A MODICUM OF SUPPORT I GUESS IT TAKES ONE TO KNOW ONE BY THE WAY IN REGARD TO YOUR OCT 1 WASHINGTON WIRE YOU SHOULD HAVE CHECKED WITH ME I DO INTEND TO RUN FOR REELECTION IN 1994 AND I DO INTEND TO WIN BOTH THESE BATTLES 9310210096 931021 LEISURE & ARTS BOB NEWHART FOR THE '90S MARX BROTHERS FROM THE BEGINNING BY DOROTHY RABINOWITZ THE FOURTH INSTALLMENT OF THIS IMPRESSIVE 12PART SERIES ON TANK WARFARE TAKES AS ITS SUBJECT THE WAR IN NORTH AFRICA AND THE HUGE CRUCIAL BATTLE OF EL ALAMEIN IN PARTICULAR THE REFERENCE TO GENTLEMAN IN THE TITLE HAS TO DO WITH THE FILM'S VIEW THAT AT LEAST IN THIS SECTOR OF THE WAR SOME TRADITIONAL VALUES STILL HELD BOTH SIDES PICKED UP EACH OTHER'S WOUNDED TREATED PRISONERS WELL ETC PERHAPS BUT THIS ISN'T THE REASON MANKIND REMEMBERS THE BRITISH ASSAULT THAT CRUSHED ROMMEL'S AFRIKA KORPS THE FILM'S POSTWAR REVERIES AND CONTEMPORARY PICTURES OF FORMER ENEMIES HOISTING A GLASS TOGETHER AT ANY RATE CAN'T HOLD A CANDLE TO ITS ELECTRIFYING NARRATIVE OF THE ACTUAL BATTLE THAT WILL BE CLEAR AT ONCE TO ANYONE WHO GETS A LOOK AT THE FOOTAGE OF THE HIGHLAND DIVISION BAGPIPERS PIPING THE TROOPS INTO BATTLE THE NEW BOB NEWHART SERIES RETURNS WITH THE FORMER CHICAGO PSYCHOLOGIST NOW ABOUT TO INHERIT THE POSITION OF HEAD OF A GREETING CARD COMPANY WHO CARES WHAT HE DOES MR NEWHART IS HIS WONDERFUL SELF WHEREVER HE HAPPENS TO BE THE '90S BOB TO BE SURE HAS TO CONFRONT CERTAIN GRIM ASPECTS OF SOCIAL PROGRESS THAT THE ONE IN THE '70S SERIES DIDN'T AMONG THEM SECRETARIES NURSING THEIR BABIES IN THE FRONT OFFICE MOREOVER THE OLD BOB HAD THE FROTHILY SOPHISTICATED SUZANNE PLESHETTE AROUND TO PLAY WIFE A FAR CRY FROM HIS DEEPLY EARNEST CURRENT HELPMATE CARLENE WATKINS WHO DOES HER BEST AS MRS NURTURER HERE STAY TUNED MUCH OF THIS FAMILY HISTORY ISN'T EXACTLY UNKNOWN ESPECIALLY THE EARLY SECTIONS WITH ITS CHRONICLE OF THAT OTHER NURTURER MOTHER MARX AND HER BROOD'S ENTRY INTO SHOW BUSINESS THE SECOND PART WHICH EXAMINES THE LATER YEARS OF GROUCHO HARPO CHICO ZEPPO AND GUMMO IS FAR FRESHER CONCENTRATED AS IT IS ON TELEVISION IN THE 1950S AND ESPECIALLY GROUCHO DOING YOU BET YOUR LIFE EVEN IF THIS STUFF SOME OF WHICH COMES FROM THE CUTTING ROOM FLOOR WEREN'T AMUSING IT WOULD BE WORTH A LOOK AT WHAT WAS ONCE UPON A TIME CONSIDERED OVERLY SUGGESTIVE AND DARING FOR TV LOOK AND WEEP THE BEGINNING OF A SEVENPART SERIES ON AMERICA IN THE DEPRESSION TONIGHT'S EPISODE FOCUSES ON DETROIT AS EMBLEMATIC OF THE NATION PACKED AS IT IS WITH RECOLLECTIONS OF DESPERATION TOLEDO HAD 80 UNEMPLOYMENT THE STRIKE AT THE FORD PLANT THE STRUGGLE FOR FOOD THE FIRST SEGMENT IS CHARGED WITH A GRIM ELOQUENCE BUT IT IS IN THE SECOND WITH ITS SUSTAINED AND GRAPHIC LOOK AT THE 1932 BONUS MARCH THAT THE SERIES GETS GOING HISTORICALLY AND DRAMATICALLY THE SEGMENT IS ESPECIALLY TRENCHANT IN ITS PORTRAITS OF HERBERT HOOVER OF THE INEVITABLE VICTORY OF FRANKLIN ROOSEVELT AND THE INSTANT SURGE OF HOPE AND RELIEF THAT FOLLOWED A REASONABLY COHERENT IF CHARACTERISTICALLY SMIRKY GORE VIDAL IS ON HAND TO POINT OUT THAT SAY WHAT HIS ENEMIES WOULD ROOSEVELT DID SAVE CAPITALISM HERE AND THERE THE DOCUMENTARY CAN GET A BIT STRANGE AS IN ITS CONCENTRATION ON THE SAGA OF PRETTY BOY FLOYD AS A '30S ROBIN HOOD A THEME MILKED DRY TOUCHES LIKE THIS ARE BOUND TO SEEM VAPID SET NEXT TO FIRSTPERSON RECOLLECTIONS OF EVICTIONS AND HUNGER THE FACES OF THE BONUS MARCHERS THE BEGINNINGS OF THE NEW DEAL AND ALL THE REST OF THE REMARKABLE HISTORY DOCUMENTED HERE THOSE WHO HAVE SMALL HOPES FOR THE OUTCOME OF THIS ELECTION DAY AND WE ARE MANY HAVE THE OPPORTUNITY TO LOSE THEMSELVES IN THE PERILS OF KITTY DODDS WHOSE MISERY IS GREATER THAN OURS IF LESS INTERESTING NEVERTHELESS THIS FILM FACTBASED ABOUT A WOMAN CONVICTED OF MURDER OF HER ABUSIVE HUSBAND WHO ESCAPES FINDS LOVE KEVIN DOBSON SAVES AN OLD MAN THEN IS RECAPTURED IS INTRICATE ENOUGH TO GET ONE THROUGH THE NIGHT KITTY ENDURES HER TRIALS WITH SULTRY AUTHORITY COURTESY OF VERONICA HAMEL WHO KNOWS HOW TO DO THAT SORT OF THING VERY WELL AND DOES IT HERE IN THE TITLE ROLE 9310210095 931021 CORPORATE FOCUS NEWHOUSE FAMILY STARTS TO PEER INTO ELECTRONIC FUTURE RECENT MOVES BELIE ADVANCE PUBLICATIONS' IMAGE AS TECHNOLOGICAL DINOSAUR BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DONALD AND SI NEWHOUSE JR AREN'T EXPERTS IN TECHNOLOGY BUT THE BROTHERS ALREADY KNOW THAT THE QVC SHOPPING CHANNEL IS A GREAT PLACE TO SELL BOOKS RANDOM HOUSE INC PART OF THE NEWHOUSE FAMILY'S VAST MEDIA EMPIRE ARRANGED A RECENT QVC APPEARANCE FOR JULIA CHILD WHO SOLD A STAGGERING 10000 COPIES OF HER NEW COOKBOOK IN 35 MINUTES LAST MONTH GERALD POSNER SOLD 3000 COPIES OF CASE CLOSED A BOOK ABOUT THE KENNEDY ASSASSINATION NEXT UP WRITER OF VAMPIRE NOVELS ANNE RICE WE'VE SOLD A LOT OF BOOKS ON QVC AND I DON'T THINK WE'VE EVEN SCRATCHED THE SURFACE YET SAYS ALBERTO VITALE CHAIRMAN OF RANDOM HOUSE THE NEWHOUSE BROTHERS SURPRISED THE INVESTMENT WORLD WITH THEIR RECENT PLEDGE OF 500 MILLION TO BACK QVC NETWORK INC'S BID FOR PARAMOUNT COMMUNICATIONS INC FOR MOST OF THE PAST DECADE THE NEWHOUSES HAVE TENDED THEIR PRIVATE PUBLISHING AND CABLE TV COMPANY ADVANCE PUBLICATIONS INC STAYING ON THE SIDELINES IN THE WAVE OF MERGERS AND MULTIMEDIA ALLIANCES BUT ADVANCE'S IMAGE AS A TECHNOLOGYAVERSE DINOSAUR BELIES RECENT MOVES BY THE FAMILY TO RAISE THE COMPANY'S PROFILE IN THIS IMPORTANT NEW AREA ISOLATED PROJECTS FROM AN ELECTRONIC VERSION OF JURASSIC PARK TO COMPUTERIZED PREVIEWS OF NEW YORKER MAGAZINE ARTICLES INDICATE A GROWING INVOLVEMENT IN MULTIMEDIA INNOVATIONS AND IN A COMPANY WHERE EXECUTIVES FROM DIFFERENT DISCIPLINES RARELY IF EVER CONFER ADVANCE HAS ASSEMBLED A NEW MULTIMEDIA GROUP THAT INCLUDES REPRESENTATIVES FROM NEWSPAPER BOOK AND MAGAZINE PUBLISHING DIVISIONS KNOWLEDGEABLE SOURCES SAY THE NEWHOUSE INVESTMENT IN QVC WHICH IS CONTINGENT UPON THE PARAMOUNT PURCHASE IS DUE LARGELY TO SI NEWHOUSE'S FRIENDSHIP WITH QVC CHAIRMAN BARRY DILLER MR DILLER INITIALLY APPROACHED SI NEWHOUSE SEVERAL MONTHS AGO ABOUT VARIOUS OPPORTUNITIES BETWEEN ADVANCE AND QVC SUCH AS SELLING MAGAZINE SUBSCRIPTIONS ON THE CHANNEL THE TALKS BECAME FAR MORE SERIOUS WHEN MR DILLER BEGAN SEARCHING FOR BACKERS FOR HIS PARAMOUNT BID MR DILLER ALSO MET WITH DONALD NEWHOUSE AND ROBERT MIRON WHO HEADS ADVANCE'S CABLE TV OPERATIONS THOUGH NEWHOUSE ISN'T AMONG THE BESTKNOWN NAMES IN CABLE TV IT IS THE EIGHTHLARGEST CABLE TV OPERATOR AND MR MIRON IS RESPECTED IN THE CABLE INDUSTRY WHERE HE ONCE HEADED ITS TRADE ORGANIZATION AND HEADED A GROUP THAT DEVELOPED CUSTOMER SERVICE RULES IT IS THE CABLE SIDE OF THE NEWHOUSE EMPIRE THAT IS IN THE BEST POSITION TO LEAD ADVANCE INTO FUTURE AND IS ALREADY PARTICIPATING IN A NUMBER OF FORWARDLOOKING VENTURES FOR EXAMPLE NEWHOUSE IS ONE OF A GROUP OF CABLE TV OPERATORS INVOLVED IN A DIRECTTOHOME SATELLITE TV SERVICE PRIMESTAR PARTNERS AND NEWHOUSE IS A MAJOR SHAREHOLDER WITH TELECOMMUNICATIONS INC AND COX ENTERPRISES INC IN DISCOVERY COMMUNICATIONS INC DISCOVERY OPERATES THE POPULAR DISCOVERY CHANNEL AND THE LEARNING CHANNEL ON CABLE TV AND DISCOVERY IS TESTING YOUR CHOICE TV AN INTERACTIVE TELEVISION SERVICE THAT LETS CABLE SUBSCRIBERS ORDER POPULAR PROGRAMS THEY MISSED WHEN THE PROGRAMS AIRED AT THEIR REGULAR TIMES YOUR CHOICE IS ALSO DEVELOPING A REMOTECONTROL DEVICE INTERACTING WITH A CABLE CONVERTER BOX THAT WOULD PROVIDE AN ELECTRONIC GUIDE SORTING OUT CATEGORIES SUCH AS DOCUMENTARIES SPORTS AND CHILDREN'S PROGRAMMING THE NEWHOUSES AREN'T KNOWN FOR GRAND LONGRANGE GROWTH STRATEGIES BUT RATHER FOR QUICK SOMETIMES CAPRICIOUS DECISIONS ABOUT WHAT PROPERTIES TO BUY AND WHICH EDITOR TO FIRE NONETHELESS EXECUTIVES IN THE NEWHOUSE EMPIRE SAY THE BROTHERS ARE BECOMING MUCH MORE CLEARLY FOCUSED ON THE ELECTRONIC FUTURE OF THE FAMILY BUSINESS I THINK DONALD AND SI HAVE BEGUN TO THINK VERY MUCH ABOUT WHAT THE NEXT GENERATION OF ADVANCE PUBLICATIONS WILL BECOME BOTH IN TERMS OF THE FAMILY AND THE PRODUCTS SAYS ONE LONGTIME CONDE NAST EDITOR THE TWO BROTHERS ARE IN THEIR MID60S BUT HORDES OF NEWHOUSE COUSINS AND CHILDREN ARE WORKING THROUGHOUT THE COMPANY WITHIN THE PAST YEAR ADVANCE HAS NAMED MULTIMEDIA CHIEFS AT RANDOM HOUSE THE BOOKPUBLISHING DIVISION THE NEWHOUSE NEWSPAPERS AND CONDE NAST WHICH INCLUDES MOST OF THE FAMILY'S 15 MAGAZINES THE FAMILY MEMBER ON THE MULTIMEDIA TEAM IS 36YEAROLD STEVE NEWHOUSE SON OF DONALD WHO OVERSEES THE CABLE AND NEWSPAPER BUSINESS STEVE IS ALSO EDITOR IN CHIEF OF THE JERSEY JOURNAL NEWSPAPER IN JERSEY CITY NJ BUT STEVE NEWHOUSE READILY ADMITS THE COMPANY IS HARDLY ON THE CUTTING EDGE I'VE BEEN INVOLVED FOR ABOUT A YEAR IN LOOKING AT OUR NEWSPAPER BUSINESS AND HOW WE SHOULD POSITION OURSELVES FOR EMERGING TECHNOLOGY HE SAYS I CAN ONLY SPEAK FOR NEWSPAPERS BUT I WOULD SAY WE ARE STUMBLING INTO THE FUTURE THERE'S AN AWARENESS THAT WE HAVE TO KEEP UP WITH THE VARIOUS POSSIBILITIES EVEN THOUGH WE DON'T YET KNOW WHICH ARE WORTHWHILE LAST MARCH THE NEWHOUSES HIRED FORMER NEW YORK DAILY NEWS EDITOR AND PUBLISHER JAMES WILLSE WHO IS WORKING ON SOME PRELIMINARY PROJECTS AS DIRECTOR OF NEW MEDIA FOR THE NEWHOUSE PAPERS THE IDEAS MR WILLSE IS SAID TO BE EXPLORING INCLUDE CUSTOMIZED ELECTRONIC VERSIONS OF THE JERSEY JOURNAL DESIGNED FOR SPECIFIC ETHNIC SEGMENTS OF THE LOCAL COMMUNITY THE GREATEST VARIETY OF ELECTRONIC EXPERIMENTATION IS HAPPENING AT THE NEWHOUSE'S BOOKPUBLISHING DIVISION WHICH HAS BEEN SELLING ELECTRONIC VERSIONS OF REFERENCE BOOKS FOR SEVERAL YEARS A FLOPPY DISK HOLDING THE FULL TEXT OF THE RANDOM HOUSE ENCYCLOPEDIA HAS SOLD AN IMPRESSIVE 300000 COPIES SO FAR JUST OUT IS THE RANDOM HOUSE UNABRIDGED DICTIONARY UNTIL THE END OF THE YEAR A CDROM DISK OF THE DICTIONARY IS BEING GIVEN AWAY WITH THE 100 HARDCOVER BOOK AFTER THAN THE BOOK AND THE DISK WILL COST 100 EACH RANDOM HOUSE RECENTLY AGREED TO START A JOINT VENTURE IN ELECTRONIC CHIDLREN'S BOOKS WITH BRODERBUND SOFTWARE INC WHOSE CDROM TITLES SUCH AS JUST GRANDMA AND ME ARE THE HOTTEST SELLERS IN A BURGEONING MARKET ANOTHER DIVISION OF RANDOM HOUSE FODOR'S TRAVEL PUBLICATIONS IS ALSO STARTING DOWN THE ELECTRONIC PATH THROUGH A JOINT VENTURE THAT ALLOWS BUYERS OF ITS TRAVEL BOOKS TO ORDER CUSTOMIZED INFORMATION ABOUT ENTERTAINMENT EVENTS IN CITIES THEY ARE VISITING THE INFORMATION IS NOW DELIVERED BY FAX OR MAIL BUT EVENTUALLY IT WILL BE TRANSMITTED VIA COMPUTER SAYS PUBLISHER KRISTINA PETERSON BUT LIKE MOST MEDIA COMPANIES RANDOM AND THE REST OF THE NEWHOUSE PROPERTIES HAVE A LONG WAY TO GO CONDE NAST'S RICH STABLE OF GLOSSY PROPERTIES SUCH AS GOURMET VOQUE AND GQ WOULD SEEM TO APPEAL TO THE KIND OF EDUCATED WELLHEELED CONSUMER MOST LIKELY TO OWN COMPUTERS THE MULTIMEDIA POTENTIAL SEEMS RICH BUT EXCEPT FOR A MONTHOLD EXPERIMENT MAKING PART OF THE NEW YORKER AVAILABLE TO SUBSCRIBERS ON THE COMPUSERVE COMPUTER NETWORK CONDE NAST ISN'T AN ELECTRONIC PRESENCE SAYS ROCHELLE UDELL THE CONDE NAST EXECUTIVE PLACED IN CHARGE OF MULTIMEDIA SEVERAL MONTHS AGO WE'RE EXPLORING WE'RE TRYING TO FIND THE RIGHT CULTURAL ENTRY POINTS FOR US AS A COMPANY NOBODY KNOWS IF THE MERCURIAL NEWHOUSES WILL DELVE DEEPLY INTO MULTIMEDIA OR JUMP RIGHT BACK OUT BUT PEOPLE WHO KNOW THE COMPANY WELL POINT OUT THAT THE EXECUTIVES BEING HANDED MULTIMEDIA DUTIES LIKE MS UDELL ARE DOERS RESULTSORIENTED EXECUTIVES IN A RESULTSORIENTED BUSINESS EMPIRE 9310210094 931021 RETAILING NEW RETAILERS MAY FIND SELLING ISN'T MICKEY MOUSE BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL RALPH LAUREN DONNA KARAN AND CALVIN KLEIN MEET YOUR NEW COMPETITORS BUGS BUNNY MICKEY MOUSE AND WILE E COYOTE CARTOON CHARACTERS FROM WALT DISNEY CO AND TIME WARNER INC REPRESENT ONE OF THE FASTESTGROWING AREAS IN A GENERALLY SLUGGISH RETAILING ENVIRONMENT BY THE END OF THIS YEAR DISNEY WHICH STARTED THE TREND IN 1987 WILL HAVE 250 RETAIL STORES AND WARNER WILL HAVE MORE THAN 60 MEANWHILE OTHER ENTERTAINMENT COMPANIES ARE TRYING THEIR HANDS AT RETAILING PUSHING MERCHANDISE RANGING FROM DINNER PLATES TO GOLF BAGS EMBLAZONED WITH THE IMAGES OF CARTOON CHARACTERS AND MOVIE STARS SONY CORP WILL OPEN ITS FIRST SONY SIGNATURES STORE IN MANHATTAN NEXT MONTH FOLLOWED BY MORE STORES AROUND THE COUNTRY NEXT YEAR TURNER BROADCASTING SYSTEM INC IS NEGOTIATING TO START INSTORE BOUTIQUES BASED ON ITS HIT CABLE CHANNEL THE CARTOON NETWORK MOTOWN RECORDS' NEW OWNER POLYGRAM NV IS PLANNING MOTOWN STORES AND RESTAURANTS AND THOUGH THE PROPOSED MERGER WITH PARAMOUNT COMMUNICATIONS INC IS FAR FROM A DONE DEAL VIACOM INC CHAIRMAN SUMNER REDSTONE IS ALREADY DREAMING OF A PARAMOUNT VIACOM RETAIL CHAIN SALES FOR THIS KIND OF MERCHANDISE ARE BEING DRIVEN BY BABY BOOMERS WHO STILL HOLD DEAR THE TELEVISION SHOWS AND MOVIES OF THEIR YOUTH I'VE LOVED THESE CHARACTERS SINCE I WAS A KID SAYS PATRICK SADOWSKI A 31YEAROLD NEW YORKER WHO RECENTLY BOUGHT A 20 TSHIRT FOR HER BOYFRIEND EMBROIDERED WITH A SCENE FROM DISNEY'S 101 DALMATIANS I FEEL A BOND A CONNECTION TO THESE CHARACTERS SALES AT ENTERTAINMENTCOMPANY STORES PRIMARILY DISNEY'S AND WARNER'S ARE EXPECTED TO DOUBLE THIS YEAR TO 700 MILLION ACCORDING TO TACTICAL RETAIL SOLUTIONS A RETAIL CONSULTANT BUT ALREADY THERE IS SOME CONCERN ABOUT WHETHER THERE SOON WILL BE A GLUT OF THE OUTLETS THAT TWEETY BIRD STUFF CAN ONLY GO SO FAR SAYS ISAAC LAGNADO A PRINCIPAL OF TACTICAL RETAIL THOUGH HE NOTES THAT WARNER'S MORE ADULT FARE SUCH AS SUEDE JACKETS WITH THAT HOLLYWOOD MOGUL LOOK ARE LIKELY TO SELL WELL OVER THE LONG HAUL SUCCESS IN THIS FIELD MR LAGNADO WARNS DEPENDS ON HAVING A WIDE ARRAY OF CHARACTERS AND PROPERTIES TO DRAW ON IF YOU ARE TOO SEGMENTED THAT DOESN'T AUGUR WELL FOR YOU HE SAYS THERE ALREADY HAVE BEEN A FEW FLOPS THAT DIDN'T HAVE BROAD ENOUGH APPEAL BETTING ON KIDS' UNIVERSAL LOVE OF THE CIRCUS RINGLING BROS AND BARNUM & BAILEY CIRCUS OPENED THREE MALL STORES IN 1990 WHICH WON PRAISE FOR THEIR DESIGN AND MERCHANDISE WITH A CIRCUS MOTIF BUT THE COMPANY SAYS SALES LAGGED BECAUSE OF THE WEAK ECONOMY AND IT CLOSED THE STORES IN JULY 1992 EVEN DISNEY HAD TO CLOSE MICKEY'S KITCHEN RESTAURANTS WHICH WERE BEING TESTED IN TANDEM WITH TWO DISNEY STORES THE RESTAURANTS' FASTFOOD MENU FEATURED SOME QUIRKY TOUCHES SUCH AS CHICKENTOPPED PIZZAS AND TURKEY HOT DOGS DISNEY SAYS OPERATING MARGINS WERE DISAPPOINTING AND ATTENTION WAS SHIFTED TO INTERNATIONAL EXPANSION OF THE DISNEY STORES THE BIGGEST GAMBLE ON THIS MARKET WILL COME NEXT WEEK IN NEW YORK WHEN WARNER BROS WORLDWIDE RETAIL UNVEILS ITS NEWEST AND MOST OUTRAGEOUS CREATION A 30000SQUAREFOOT STORE THAT IS INTERACTIVE AND FULL OF EXPLODING BATMAN SCENES BENEATH A TABLEAU OF BUGS BUNNY AS THE STATUE OF LIBERTY OVERLOOKING THE BROOKLYN BRIDGE SHOPPERS CAN CHOOSE FROM 58 DENIM SHIRTS WITH THE JUSTICE LEAGUE COMICBOOK HEROES EMBROIDERED ON THE BACK A 200 SUEDE JACKET WITH THE VINTAGE WB LOGO AND A 600 GOLF BAG WITH BUGS BUNNY STITCHED ON THE SIDE ORIGINAL ANIMATION ART FROM THE LOONEY TUNES VAULTS WILL SELL FOR AS MUCH AS 16000 SOME ENTERTAINMENT COMPANIES ARE GIVING CARTOON CHARACTERS A SECOND CHANCE THE ANIMATION STUDIO HANNABARBERA NOW OWNED BY TURNER BROADCASTING CLOSED STORES AFTER YOGI BEAR THE FLINTSTONES AND THE JETSONS FAILED TO DRAW CROWDS BUT NOW TURNER WHICH LAUNCHED THE CARTOON NETWORK LAST YEAR IS NEGOTIATING WITH DEPARTMENT STORES AND CHAIN RETAILERS TO OPEN CARTOON NETWORK BOUTIQUES BY THE MIDDLE OF 1994 FEATURING MANY OF THOSE SAME CHARACTERS RATHER THAN OPEN ITS OWN STORES TURNER WANTS TO ATTRACT THE TREMENDOUS AMOUNT OF PEOPLE WHO WALK INTO THESE CHAINS AND DEPARTMENT STORES SAYS LOIS SLOANE EXECUTIVE VICE PRESIDENT OF WORLDWIDE LICENSING AND MERCHANDISING FOR THE TURNER HOME ENTERTAINMENT UNIT MEDIA TITAN SONY ALSO WANTS TO TRY RETAILING BUT IT ISN'T BANKING ON CARTOON CHARACTERS THIS FALL AS PART OF THE OPENING OF SONY PLAZA IN NEW YORK THE COMPANY WILL UNVEIL ITS FIRST SONY SIGNATURES STORE THE STORE EXPECTS TO SELL MERCHANDISE BASED ON SONY RECORDING STARS AND ITS MOVIE PROPERTIES AS WELL AS ON NONSONY ARTISTS SUCH AS JANET JACKSON WHO JUST SIGNED A MERCHANDISING DEAL WITH SONY FOR EXAMPLE THE SONY SIGNATURES STORE WILL OFFER A WOOL JACKET WITH IMAGERY FROM BILLY JOEL'S LATEST ALBUM AND EVEN MEMORABILIA SUCH AS THE ACTUAL HARMONICAS PLAYED ON THE SINGER'S LATEST TOUR RETAIL ANALYSTS ESTIMATE THAT SALES AT WARNER AND DISNEY STORES AVERAGE ABOUT 600 PER SQUARE FOOT WELL ABOVE THE 400 LEVEL AT THE AVERAGE PROSPEROUS MALL STORE DEVELOPERS EAGER TO PERK UP DRAB MALLS ARE OFFERING THE TOP ENTERTAINMENT RETAILERS ATTRACTIVE LONGTERM LOWRATE LEASES AND UNLIKE OTHER STORES ENTERTAINMENT RETAILERS RARELY PUT ANYTHING ON SALE THAT MEANS HIGHER PROFIT MARGINS OPENING A STORE BASED HEAVILY ON CARTOON CHARACTERS MIGHT SEEM RISKY ON A STREET THAT IS HOME TO SOME OF THE WORLD'S MOST ELEGANT MERCHANTS INCLUDING TIFFANY BULGARI AND BERGDORF GOODMAN BUT WARNER STORES HAVE PROVED TO BE CROWD PLEASERS SO FAR IN SHOPPING MALLS FROM LONG ISLAND TO LAS VEGAS WHEN WARNER DECIDED TO CREATE STORES PETER STARRETT PRESIDENT OF WARNER BROS WORLDWIDE RETAIL SAID IT HAD TO DIFFERENTIATE ITSELF FROM THE DISNEY STORES BY GEARING ITS MERCHANDISE AND APPROACH MORE TOWARD ADULTS AND BY MAKING ITS MALL STORES MORE THAN TWICE AS BIG AS THE AVERAGE DISNEY STORE WHICH IS 3500 SQUARE FEET DISNEY PLANS TO OPEN 11000SQUAREFOOT SUPERSTORES IN PARIS AND FRANKFURT GERMANY THIS YEAR WE HAD TO BE DIFFERENT OR THE DEVELOPERS WOULD JUST LOOK AT US AS METOO STORES THAT WEREN'T VERY SPECIAL SAYS MR STARRETT WARNER OPENED ITS FIRST STORE AT THE BEVERLY CENTER IN LOS ANGELES IN 1991 WHEN THE CONSUMER MOOD DURING THE GULF WAR WAS DECIDEDLY GLOOMY WARNER STORES RECEIVED GOOD REVIEWS BUT MALL DEVELOPERS WERE RELUCTANT TO TAKE THEM ON BECAUSE THEY SEEMED LIKE JUST THE LATEST IN A STRING OF STORES TIED TO CARTOON CHARACTERS THAT ATTITUDE CHANGED IN MAY 1992 WHEN DEVELOPERS RETAILERS AND CONSULTANTS DESCENDED UPON LAS VEGAS FOR A MEETING OF THE INTERNATIONAL COUNCIL OF SHOPPING CENTERS JUST DAYS BEFORE WARNER HAD OPENED ITS FIFTH AND LATEST STORE IN THE GLITZY FORUM SHOPS AT CAESARS PALACE ALTHOUGH LOCATED NEAR GUCCI AND OTHER HIGHEND RETAILERS WARNER'S STORE STOOD OUT 9310210093 931001 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER WHEELING AND DEALING ACCELERATES TO WIN VOTES FOR THE FREETRADE PACT LOUISIANA SEN BREAUX A LEADER OF SUGARSTATE LAWMAKERS SAYS 10 HOUSE VOTES FOR NAFTA HINGE ON GETTING SAFEGUARDS AGAINST MEXICAN SUGAR IMPORTS US OFFICIALS PRIVATELY PLEDGE TO PRESS MEXICO TO SPEED AN END TO TARIFFS ON APPLIANCES AND WINE AS MIDWEST AND CALIFORNIA LAWMAKERS WANT US TRADE REPRESENTATIVE KANTOR WOOS WHEATSTATE LAWMAKERS BY VOWING PROTECTION AGAINST CANADIAN DURUMWHEAT BUT SEN DORGAN OF WHEATPRODUCING NORTH DAKOTA SAYS HE STILL OPPOSES NAFTA AND EVEN SOME PRONAFTA LAWMAKERS DECRY THE DEALMAKING INCLUDING FLORIDA REP GIBBONS HEAD OF A TRADE SUBCOMMITTEE ONCE YOU START DOWN THAT PATH SAYS RHODE ISLAND SEN CHAFEE THEN EVERYONE HAS A GOODY HE OR SHE WANTS CLINTON PLANS A PRONAFTA EVENT EACH WEEK A SPEECH AT THE UNIVERSITY OF NORTH CAROLINA WILL TIE FREE TRADE AND HEALTHCARE REFORM INTO A THEME OF SECURITY FOR AMERICANS THE FED BRACES FOR A NEW ROUND OF CONGRESSIONAL ATTACKS HEARINGS PLANNED THIS MONTH BY HOUSE BANKING CHAIRMAN GONZALEZ WILL REOPEN THORNY QUESTIONS ONE TOPIC THE CONSTITUTIONALITY OF ALLOWING PRIVATECITIZEN FED BANK PRESIDENTS TO VOTE ON THE NATION'S MONEY SUPPLY SEN SARBANES WHO WILL TAKE OVER THE SENATE BANKING PANEL WHEN SEN RIEGLE STEPS DOWN BACKS A BILL TO STRIP THE FED BANK PRESIDENTS OF THEIR VOTES ON INTEREST RATES FED INSIDERS THOUGH UNEASY FIGURE GONZALEZ AND SARBANES WILL FIND IT EASIER TO GET HEADLINES THAN LEGISLATION AND CLINTON'S FIRM OPPOSITION TO CHANGING THE LAW GOVERNING THE FED MAKES ANY CHANGES UNLIKELY BUT THE CONGRESSIONAL FOCUS COULD MAKE THE FED THINK TWICE BEFORE RAISING INTEREST RATES DEMOCRATS' HOPES RISE IN SENATE RACES AS TWO KEATING5 FIGURES STEP ASIDE DECONCINI'S RETIREMENT IN ARIZONA IS EXPECTED TO UNDERCUT GOP REP KYL'S SENATE CAMPAIGN TO UNSEAT THE INCUMBENT WITH MICHIGAN'S RIEGLE RETIRING DEMOCRATS HOPE TO GET FORMER GOV BLANCHARD INTO THE RACE RIEGLE MIGHT HAVE WON BUT IT'S GOOD FOR THE DEMOCRATS THAT DECONCINI IS OUT SAYS POLITICAL ANALYST CHARLES COOK DEMOCRATS ALSO ARE UPBEAT IN OHIO WHERE RETIRING SEN METZENBAUM'S SONINLAW JOEL HYATT FOUNDER OF THE LEGAL CHAIN IS WINNING LABOR SUPPORT THE GOP MAY BE SPLIT BETWEEN GOV DE WINE AND FORMER NIH DIRECTOR BERNADINE HEALY SOME NATIONAL REPUBLICANS THINK HEALY WHO BACKS ABORTION RIGHTS AND IS KNOWLEDGEABLE ABOUT HEALTH CARE WOULD BE A STRONG CANDIDATE SPECULATION GROWS THAT MORE SENATORS UP FOR REELECTION MAY RETIRE SUCH AS VIRGINIA'S ROBB OR UTAH'S HATCH TENSIONS SPARK BETWEEN THE WHITE HOUSE AND RENO WHITE HOUSE OFFICIALS COMPLAIN THAT THE ATTORNEY GENERAL EMBOLDENED BY HER GOOD PRESS HOLDS UP APPOINTMENTS AND DISSENTS ON SOME CLINTONBACKED ANTICRIME MEASURES PRESIDENTIAL GERGEN STEPS IN TO TRY TO SMOOTH RELATIONS RENO DENIES ANY FRICTION SPECULATION BEGINS ALREADY ON SUPREME COURT CHANGES AS A NEW TERM STARTS MONDAY BLACKMUN WHO TURNS 85 NEXT MONTH IS THE BEST BET FOR RETIREMENT COME SPRING POSSIBLE CLINTON CHOICES INCLUDE FEDERAL JUDGE JOSE CABRANES OF CONNECTICUT AS THE COURT'S FIRST HISPANIC OR SOLICITOR GENERAL DREW DAYS A BLACK CAMPAIGNFINANCE REFORM LANGUISHES IN CONGRESS AND RECEIVES NO PUSH FROM CLINTON DESPITE HIS CALLS FOR CHANGE BUT THE PRESIDENT STEPS UP HIS FUNDRAISING EFFORTS FOR LAWMAKERS WITH APPEARANCES PLANNED IN LOS ANGELES FOR HOUSE DEMOCRATS AND IN WASHINGTON FOR SENATE DEMOCRATS SUPER REGULATOR THE CLINTON ADMINISTRATION'S SLOWNESS IN NAMING HEADS OF THE FDIC AND THE TREASURY'S OFFICE OF THRIFT SUPERVISION ENCOURAGES TALK THAT IT IS ABOUT TO UNVEIL A PLAN TO COMBINE THE FOUR MAJOR BANK REGULATORS DISCUSSIONS ALSO INVOLVE THE COMPTROLLER OF THE CURRENCY AND PARTS OF THE FED HAITI'S PRESIDENT STIRS UNEASE DESPITE CLINTON'S BACKING US DEFENSE OFFICIALS WORRY THAT EXILED PRESIDENT ARISTIDE DUE TO RETURN TO OFFICE THIS MONTH ISN'T MOVING STRONGLY TO RESTORE DEMOCRATIC RIGHTS THEY FEAR ANOTHER COUP RENEWED VIOLENCE AND NEW FLOTILLAS OF BOAT PEOPLE THE ULTIMATE FEAR US TROOPS COULD GET TANGLED IN ANOTHER SOMALIA BUT VISITING US LAWMAKERS LED BY MEMBERS OF THE INCREASINGLY INFLUENTIAL CONGRESSIONAL BLACK CAUCUS CARRIED A NEW LETTER OF SUPPORT FOR THE ARISTIDE GOVERNMENT FROM CLINTON REP RANGEL INSISTS THAT ARISTIDE IS LIVING UP TO HIS PROMISES US OFFICIALS PRESS HAITIAN LAWMAKERS TO MOVE ON AMNESTY AND UPGRADING THE HAITIAN POLICE FORCE US OFFICIALS SAY THAT THE 600 TROOPS BEING SENT TO HAITI STARTING NEXT WEEK WON'T BE USED TO PROVIDE SECURITY FOR ARISTIDE MINOR MEMOS TALK ABOUT EMPLOYER MANDATES HILLARY RODHAM CLINTON TOLD HEALTH CZAR IRA MAGAZINER TO GET A HAIRCUT AND A NEW TIE BEFORE A TV APPEARANCE LAST SUNDAY HE DID AN INVITATION TO A GREENPEACE RECEPTION OFFERS GUESTS VALET PARKING AND BICYCLE STORAGE A BEEPER COMPANY DECLINES AT FIRST TO SEND A WHITE HOUSE MESSAGE ANNOUNCING A FULL LID REPORTER LINGO FOR NO NEWS BELIEVING IT INSTEAD TO BE A MESSAGE FOR DRUG DEALERS COMMERCIAL FLIGHTS TO WASHINGTON WERE DELAYED YESTERDAY BY A MILITARY FLYBY HONORING COLIN POWELL'S RETIREMENT SEE RELATED LETTER LETTERS TO THE EDITOR WHAT THE FDA DOESN'T WANT KNOWN WSJ OCT 21 1993 9310010058 YY93 MM10 9310210092 931021 DISASTER AID HELPS EVEN SOME FARMERS WITHOUT INSURANCE BY SCOTT KILMAN FARMERS HURT BY THE RECORD SUMMER RAINS WANT FEDERAL AID UNCLE SAM HAS 23 BILLION TO SPEND ON CROP DAMAGE BUT THE PROGRAM ONE OF THE MOST GENEROUS TO COME OUT OF WASHINGTON IS CONFUSING LOSE A THIRD OF YOUR CROP CAN'T HELP YOU LOSE IT ALL IF YOU'VE GOT INSURANCE HERE'S ENOUGH TO COVER YOUR LOSSES MIDWEST FARMERS KNOW THE FEDERAL GOVERNMENT IS A SOFT TOUCH SO LESS THAN HALF BUY CROP INSURANCE EVEN THOUGH THE TYPICAL PREMIUM IS 30 SUBSIDIZED SURE ENOUGH THE GOVERNMENT HAS ROUTINELY BAILED OUT FARMERS AFTER A NATURAL DISASTER INCLUDING FARMERS THAT AREN'T EVEN ENROLLED IN ITS PRICESUPPORT PROGRAMS THAT IS MADDENING TO THE AGRICULTURE DEPARTMENT SO AS NOT TO REWARD THE UNINSURED UNFAIRLY THE GOVERNMENT GIVES AID AT A HIGHER RATE TO THOSE WHO PAID FOR INSURANCE AN INSURED FARMER THIS TIME IS ELIGIBLE FOR DISASTER AID AFTER LOSING 35 OF A GOVERNMENTCALCULATED CROP NUMBER WHILE AN UNINSURED FARMER HAS TO HAVE LOSSES OF 40 SO AT THE EXTREME THE SAME 100 WASHEDOUT ACRES OF CORN COULD YIELD THE UNINSURED FARMER A 12000 FEDERAL CHECK AND AN INSURED ONE 29000 IN FEDERAL MONEY AND INSURANCE APPLYING FOR INSURANCE AND DISASTER AID MAY MEAN A LOT OF FORMS TO FILL OUT BUT IT IS WELL WORTH THE EFFORT THE PAYOFF COMING IN SOME FARMERS' MAIL IS ABOUT WHAT THEY WOULD HAVE MADE IF THEY HAD WORKED THEIR LAND GOTTEN GOOD WEATHER AND THEN HARVESTED IT ACCORDING TO CALCULATIONS BY DEPARTMENT OFFICIALS AND THERE IS THE SOCALLED 092 PROGRAM THAT IS SUDDENLY POPULAR IT PAYS FARMERS TO IDLE ACREAGE AN ADJUSTMENT THIS YEAR ALLOWS SOME FARMERS WITH RUNTY FIELDS TO PRETEND TO NEVER HAVE PLANTED THEM TO QUALIFY THEY DESTROY THE POORLY PERFORMING CROPS THE 092 SIGNUP USUALLY ENDS IN JUNE AS PLANTING CONCLUDES IN THE MIDWEST AT THE INSISTENCE OF FARM GROUPS THE DEADLINE PERIOD WAS EXTENDED TO SEPT 17 ALL THIS IS SPURRING THE DEPARTMENT TO CONSIDER HOW TO CHANGE DISASTER AID AND REFORM FEDERALLY SUBSIDIZED CROP INSURANCE FOR THE NEXT CALAMITY BUT FOR SOME FARMERS IT IS TOO LATE JAMES MATSON THE FARMLOAN OFFICER OF THE NORWEST BANK BRANCH IN THIEF RIVER FALLS MINN ALREADY FIGURES A HANDFUL OF BORROWERS PROBABLY WON'T LAST THE WINTER SOME FARMERS NEED MORE THAN THE GOVERNMENT CAN GIVE THEM HE SAYS 9310210091 931021 BUSINESS BRIEF PICTURETEL CORP NET INCOME PLUMMETED 67 IN THE THIRD QUARTER PICTURETEL CORP SQUEEZED BY HIGHER COSTS FOR PRODUCT DEVELOPMENT AND SALES EXPANSION REPORTED THAT THIRDQUARTER NET INCOME TUMBLED 67 TO 629000 OR FOUR CENTS A SHARE IN THE 1992 THIRD QUARTER THE DANVERS MASS MAKER OF VIDEO COMMUNICATION SYSTEMS EARNED 19 MILLION OR 12 CENTS A SHARE INCLUDING A ONETIME GAIN OF 254000 OR ONE CENT A SHARE REVENUE IN THE LATEST QUARTER ROSE 9 TO 394 MILLION FROM 36 MILLION PICTURETEL'S TOTAL OVERHEAD EXPENSE FOR THE QUARTER WAS ABOUT 22 MILLION COMPARED WITH ABOUT 18 MILLION A YEAR EARLIER WITH MOST OF THE ADDED EXPENDITURES DIVIDED BETWEEN NEWPRODUCT ENGINEERING AND EXPANSION OF SALES OPERATIONS SAID TREASURER JOAN NEVINS 9310210090 931021 BUSINESS BRIEF ETHYL CORP COMPANY POSTS 72 DECLINE IN THIRDQUARTER NET INCOME ETHYL CORP REPORTED A 72 DROP IN THIRDQUARTER PROFIT BECAUSE OF A CHARGE IN THE CURRENT QUARTER AND A BIG YEARAGO GAIN FROM DISCONTINUED OPERATIONS NET INCOME FELL TO 20 MILLION OR 17 CENTS A SHARE FROM 713 MILLION OR 60 CENTS A SHARE A YEAR AGO THE RESULTS INCLUDED 98 MILLION IN CHARGES OR EIGHT CENTS A SHARE FOR WORKFORCE REDUCTIONS EARLY RETIREMENT COSTS AND FEDERAL TAX CHANGES THE 1992 FIGURES INCLUDED INCOME FROM DISCONTINUED OPERATIONS OF 49 MILLION OR 41 CENTS A SHARE FROM THE SPINOFF OF FIRST COLONY CORP REVENUE FELL 57 TO 4869 MILLION FROM THE YEAREARLIER 4607 MILLION THE YEARAGO FIGURE EXCLUDES REVENUE FROM DISCONTINUED OPERATIONS THE CHEMICAL COMPANY WHICH IS BASED IN RICHMOND VA SAID EXCLUDING THE CHARGES AND GAINS OPERATING INCOME FOR THE QUARTER IMPROVED TO 298 MILLION FROM THE YEARAGO 223 MILLION ETHYL SHARES SLIPPED 125 CENTS TO 17625 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9310210089 931021 LEISURE & ARTS FILM BANNED IN CHINA A HIT AT CANNES BY JULIE SALAMON FAREWELL MY CONCUBINE A WINNER AT THIS YEAR'S CANNES FILM FESTIVAL WAS BANNED IN CHINA OF COURSE BEING BANNED IN CHINA HAS BECOME A KIND OF STATUS SYMBOL FOR CHINESE FILMS BEING MARKETED ABROAD ON THE FILM FESTIVAL CIRCUIT THE THEORY SEEMS TO BE IF THE CHINESE GOVERNMENT DISAPPROVED OF IT THE FILM MUST BE GREAT ONE WONDERS IF THE CHINESE HAVE FIGURED THIS OUT AND WILL NOW ROUTINELY BAN MOVIES WITH EXPORT POTENTIAL THE DOMESTIC CENSORSHIP OF CONCUBINE WAS SUSPICIOUSLY BRIEF JUST LONG ENOUGH TO QUALIFY IT AS AN INTERNATIONAL INCIDENT IN THE FILM WORLD CONCUBINE IS MORE GRANDIOSE THAN GREAT LILIAN LEE ADAPTING HER NOVEL FOR THE SCREEN HAS HIGHFLOWN ASPIRATIONS SHE WANTS TO BEAR WITNESS TO THE UPHEAVALS OF 20THCENTURY CHINA THROUGH THE RELATIONSHIP OF TWO STARS OF THE PEKING OPERA AND THE PROSTITUTE WHO MARRIES ONE OF THEM SHE LINKS THE TWO THROUGH CONSTANT REFERENCE TO THE TRADITIONAL OPERA FAREWELL MY CONCUBINE THE STORY OF A HEROIC CHINESE WARLORD DEFEATED BY FATE AND THE PROSTITUTE WHO NEVER LEAVES HIM DIRECTOR CHEN KAIGE HAS FILMED THE STORY AS A GORGEOUS SPECTACLE AS CINEMATIC OPERA THE CHARACTERS SUFFER ENDLESSLY YET MANAGE TO REMAIN EMOTIONALLY UNCHANGED AS THE DECADES PASS PERHAPS EVEN MORE ASTONISHING THEY REMAIN PHYSICALLY UNCHANGED AS WELL THE POLITICAL VISION OF FAREWELL MY CONCUBINE IS MYSTERIOUS TOO WHAT THE PICTURE SEEMS TO BE SAYING IS THAT AS GOVERNMENTS RISE AND FALL ONE THING REMAINS THE SAME BRUTALITY RULES NO MATTER WHO IS IN CHARGE BUT IT'S BETTER FOR ACTORS IF THE RULING ELITE APPRECIATES OPERA THE BEST PART OF THE MOVIE COMES IN THE OPENING SEQUENCE A FASCINATING PORTRAYAL OF AN ACTING SCHOOL WHICH USED TO TRAIN BOYS FOR THE PEKING OPERA THIS PORTION OF THE FILM TAKES PLACE IN 1924 THE FIRST OF A SERIES OF STYLIZED FLASHBACKS THE MOVIE ACTUALLY BEGINS IN 1977 WHEN TWO AGING OPERA STARS APPEAR IN COSTUME IN AN EMPTY AUDITORIUM AND TELL THEIR LIFE STORY TO A JANITOR WORKING THERE MR KAIGE AND HIS CINEMATOGRAPHER GU CHANGWEI FILMED THE SCENES IN THE HORRIBLE DICKENSIAN ACTING SCHOOL WITH VIVID INTENSITY THE INSTRUCTORS TERRORIZE THEIR YOUNG CHARGES STRETCHING THEIR MUSCLES WITH BRICKS TO PREPARE THEM FOR THE ACROBATICS OF PEKING OPERA BEATING THEIR BARE BOTTOMS WITH THE FLAT END OF SWORDS WHEN THEY FORGET A LINE AND AGAIN WHEN THEY REMEMBER SO THEY DON'T FORGET NEXT TIME IT IS PERMISSIBLE FOR A BOY TO PUNISH A FELLOW CLASSMATE'S FORGETFULNESS BY SCRAPING THE INSIDE OF HIS MOUTH BLOODY THE SOUND OF LITTLE BOYS SCREAMING ECHOES THROUGHOUT THE FILM IN THE SCREECHY HISTRIONICS OF CHINESE OPERA HERE IN THIS BLEAK SETTING THE FILMMAKERS INTRODUCE TWO OF THE THREE MAIN CHARACTERS THE BOYS WHO WILL SURVIVE AND GROW UP TO BECOME FAMOUS ACTORS THE PEOPLE TELLING THE STORY DOUZI THE FRAIL ONE WHO TRAINS FOR THE FEMALE ROLES IS BROUGHT THERE BY HIS MOTHER A YOUNG PROSTITUTE WHO DOESN'T KNOW WHAT ELSE TO DO WITH HIM WHEN THE INSTRUCTOR SUMMARILY REJECTS THE BOY BECAUSE HE HAS AN EXTRA FINGER HIS MOTHER CHOPS THE FINGER OFF THIS TURNS OUT TO BE ONLY A PRECURSOR OF THE ABUSE HE WILL ENDURE TO BECOME AN OPERA STAR AND BEGINS TO EXPLAIN WHY DOUZI CAN NEVER HAVE A LIFE OUT OF COSTUME DOUZI'S PROTECTOR AT SCHOOL SHITOU TRAINS FOR THE HEROIC ROLES BOTH IN LIFE AND ON STAGE AND KEEPS RUNNING AWAY FROM THEM BOTH IN LIFE AND ON STAGE HE EVENTUALLY ABANDONS DOUZI AFTER THEY HAVE GROWN UP AND BECOME A FAMOUS ACTING TEAM WITH STAGE NAMES OR SO DOUZI FEELS WHEN SHITOU MARRIES THE WOMAN HE MARRIES JUXIAN IS A BEAUTIFUL PROSTITUTE WHOSE CHARACTER NEVER DEVELOPS MUCH BEYOND A GENERALIZED IMPRESSION OF STRENGTH AND LOYALTY THOUGH GONG LI THE FINE ACTRESS WHO PLAYS HER MAKES THE IMPRESSION LAST LONGER THAN IT OTHERWISE MIGHT THE HONG KONG ACTOR LESLIE CHEUNG WHO PLAYS THE ADULT DOUZI SPENDS MUCH TIME STARING OFF INTO SPACE TRAGICALLY CHINA'S ZHANG FENGYI PLAYS SHITOU A MAN WHO TRIES TO PLEASE EVERYONE AND PLEASES NO ONE A DIFFICULT SUBTLE ROLE THE ACTOR PERFORMS WELL ONCE THE CHARACTERS BECOME ADULTS HOWEVER THE FILM BECOMES STATIC DESPITE ITS RELENTLESS MARCH THROUGH HISTORY FLIGHT OF THE INNOCENT A NEW ITALIAN PICTURE OPENS WITH THE FOLLOWING INFORMATION BECAUSE OF ECONOMIC HARDSHIP IN ITALY KIDNAPPING HAS BECOME AN ALTERNATE INDUSTRY THOUGH THIS FILM IS FICTION IT IS BASED ON FACT WHAT FOLLOWS IS A BIZARRE HYBRID OF ITALIAN ART AND HOLLYWOOD SIZZLE IT MADE PERFECT SENSE TO ME WHEN I FOUND OUT THAT THE PICTURE'S TALENTED YOUNG DIRECTOR CARLO CARLEI HAS ALREADY BEEN SIGNED BY COLUMBIA PICTURES TO DIRECT A FILM MR CARLEI'S DEBUT FILM FLIGHT OF THE INNOCENT WHICH HE COAUTHORED WITH GUALTIERO ROSELLA HAS MADE THE KIND OF SLICK KIDINPERIL STORY ARNOLD SCHWARZENEGGER MIGHT LIKE TO STAR IN EXCEPT THERE'S NO ADULT HERO THE TERROR AND TRIAL AND BLOODINESS WILL SEEM FAMILIAR TO AMERICAN ACTION FANS THOUGH THE PAINTERLY MOMENTS MAY NOT MOST LIKELY THE PICTURE WILL CONFUSE EVERYONE THE ARTHOUSE CROWD WON'T LIKE THE SUPERFICIALITY THE ACTION CROWD WON'T LIKE THE SUBTITLES SOMETHING FOR EVERYBODY AND NOBODY VIDEO TIP IF BIG SPECTACLES ABOUT CHINA INTEREST YOU ENJOY BERNARDO BERTOLUCCI'S THE LAST EMPEROR THE STORY OF THE HAPLESS PU YI IT IS BIG AND IT IS SPECTACULAR 9310210088 931021 ECONOMY HELP TO DOCTORS AND HOSPITALS SEEN IN REFORM CLINTON AIDE FAVORS LOANS TO FORM HEALTH PLANS THAT RIVAL BIG INSURERS' BY GEORGE ANDERS AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL DOCTORS AND HOSPITALS SHOULD HAVE ACCESS TO SPECIAL LOWINTEREST LOANS IF THEY WANT TO FORM THEIR OWN HEALTH PLANS TO COMPETE WITH BIG INSURERS WHITE HOUSE HEALTHPOLICY ADVISER IRA MAGAZINER SAID WHITE HOUSE AIDES SAID LATE YESTERDAY THAT THEY BELIEVE THAT MR MAGAZINER'S PROPOSAL MADE IN A MIDDAY SPEECH TO A BOSTON HEALTHCARE CONFERENCE WAS MEANT TO APPLY ONLY TO UNDERSERVED AREAS THEY ADDED THAT THE CLINTON ADMINISTRATION ALREADY HAD SIGNALED SOME INTEREST IN SUCH A LOAN PROGRAM LAST MONTH WHEN IT SPELLED OUT ITS PLANS FOR HEALTHSYSTEM REFORM IN A 239PAGE WORKING DRAFT EVEN SO CONSULTANTS AND DOCTORS' GROUPS SAID MR MAGAZINER'S PROPOSAL APPEARED TO BE THE CLEAREST EXPRESSION YET OF A GOVERNMENTAL DESIRE TO HELP DOCTORS AND HOSPITALS FORM THEIR OWN HEALTH PLANS I THINK IT'S A GREAT IDEA SAID RICHARD D'AMARO A PARTNER AT THE ACCOUNTING AND CONSULTING FIRM OF KPMG PEAT MARWICK WHO SPECIALIZES IN HEALTH CARE DOCTORS AND HOSPITALS HAVE CONTENDED FOR SOME TIME THAT THEY ARE AT A DISADVANTAGE IN RAISING CAPITAL TO CREATE HEALTH PLANS AS A RESULT NEW HEALTH PLANS COMMONLY ARE CREATED BY INSURANCE COMPANIES OR INVESTOROWNED HEALTHMAINTENANCE ORGANIZATIONS WHICH HAVE EASIER ACCESS TO CAPITAL ACCORDING TO KPMG'S MR D'AMARO IT CAN TAKE 30 MILLION OR MORE TO SET UP A HEALTH PLAN SERVING 200000 PEOPLE HOSPITALS OFTEN HAVE TROUBLE RAISING FRESH CASH BECAUSE OF CONDITIONS IMPOSED BY THEIR BONDMARKET LENDERS WHILE DOCTORS GENERALLY HAVE ONLY LIMITED CAPITAL IN THEIR PRACTICES AND ARE HESITANT TO TAP DEEPLY INTO THEIR PRIVATE FUNDS MR MAGAZINER SAID THE ADMINISTRATION'S BROAD GOAL IS TO PROVIDE CONSUMERS WITH AS WIDE AS POSSIBLE A CHOICE OF HEALTH PLANS THAT THEY CAN JOIN WE WANT TO SET IN MOTION A COMPETITION THAT WILL MAKE SOME INSURANCE COMPANIES SOME HMOS AND SOME PROVIDEROWNED PLANS AVAILABLE TO THE PUBLIC HE SAID JAMES TODD EXECUTIVE VICE PRESIDENT OF THE AMERICAN MEDICAL ASSOCIATION SAID THE AMA WOULD PREFER HAVING THE PROPOSED LOANS AVAILABLE NATIONWIDE RATHER THAN LIMITING THEM TO UNDERSERVED AREAS STILL HE PRAISED THE LOAN CONCEPT SAYING THAT IT SHOWS THE ADMINISTRATION IS CONCERNED ABOUT THE FATE OF THE INDIVIDUAL PHYSICIAN ON OTHER ISSUES MR MAGAZINER SHOWED MORE CONCERN THAN SOME LISTENERS HAD EXPECTED ABOUT THE POTENTIAL POWER OF THE NEW HEALTHCARE BUYING GROUPS THAT THE ADMINISTRATION WANTS TO CREATE KNOWN AS HEALTH ALLIANCES THESE COULD TURN INTO HUGE BUREAUCRACIES IF WE AREN'T CAREFUL HE SAID HE SAID HE WANTS TO SEE THE ALLIANCES FUNCTION AS BROKERS BETWEEN CONSUMERS AND HEALTH PLANS RATHER THAN AS COMPLEX REGULATORY AGENCIES MR MAGAZINER HELD TO A TOUGH LINE THOUGH ON THE ADMINISTRATION'S PLANS FOR VARIOUS FORMS OF PRICE RESTRAINTS THESE HAVE DRAWN LOUD OUTCRIES FROM THE DRUG AND INSURANCE INDUSTRIES BUT MR MAGAZINER SAID IT IS FUNDAMENTAL TO US THAT WE HAVE A CLEAR WAY TO GET THE GROWTH OF COSTS UNDER CONTROL THAT MEANS HE SAID SOME TYPE OF SPENDING CAPPING BOTH IN PUBLIC AND PRIVATE PROGRAMS THE NATIONAL ASSOCIATION OF MANUFACTURERS RELEASED A LETTER IT SENT TO PRESIDENT CLINTON THIS WEEK URGING THE WHITE HOUSE TO SCALE BACK ITS HEALTH PLAN THE PLAN IS TOO LARGE AND AMBITIOUS BY HALF SAID THE LETTER WRITTEN BY THE GROUP'S PRESIDENT JERRY JASINOWSKI IN PARTICULAR THE BENEFITS PACKAGE THE PLAN WOULD GUARANTEE ALL AMERICANS MUST BE REDUCED TO A BASIC AND AFFORDABLE PACKAGE OF CORE HEALTH BENEFITS THE LETTER SAID BUT A SURVEY OF THE NAM'S BOARD WHICH INCLUDES EXECUTIVES OF BOTH LARGE AND SMALL BUSINESSES COULD HELP THE ADMINISTRATION IN ITS EFFORTS TO WIN SUPPORT OF ONE ELEMENT IN THE CLINTON PLAN A REQUIREMENT THAT ALL EMPLOYERS PAY PART OF THE COST OF THEIR WORKERS' HEALTH COVERAGE IN THE POLL 42 OF THE NAM DIRECTORS SAID THEY BELIEVE EMPLOYERS SHOULD BE REQUIRED TO CONTRIBUTE TO THEIR WORKERS' HEALTH INSURANCE AS THE ADMINISTRATION PROPOSES ONLY 19 SAID INDIVIDUALS SHOULD BE REQUIRED TO OBTAIN HEALTH COVERAGE AN APPROACH PROPOSED BY A GROUP OF MODERATE SENATE REPUBLICANS ONLY 36 SAID A SOLUTION TO THE NATION'S HEALTHCARE PROBLEMS SHOULDN'T INCLUDE MANDATES ON EMPLOYERS OR INDIVIDUALS SEPARATELY ADMINISTRATION OFFICIALS CONFIRMED THAT GOVERNMENT AGENCIES WON'T ENJOY A LIMIT ON THE CONTRIBUTIONS THEY MAKE TOWARD THEIR WORKER'S HEALTH INSURANCE THE WHITE HOUSE PLAN WOULD REQUIRE ALL EMPLOYERS TO PAY ON BEHALF OF EACH FULLTIME WORKER AT LEAST 80 OF THE AVERAGE HEALTHINSURANCE PREMIUM IN ITS AREA BUT IT PUTS A CEILING OF 79 OF PAYROLL ON PRIVATESECTOR EMPLOYERS' CONTRIBUTIONS THE LIMIT IS EVEN LOWER FOR SMALL LOWWAGE BUSINESSES THE ABSENCE OF A CEILING ON PUBLIC EMPLOYERS WAS FIRST REPORTED BY THE NEW YORK TIMES 9310210087 931021 WHO'S NEWS RJR NABISCO INC RJR NABISCO INC NEW YORK JEFFREY D SERKES 34 YEARS OLD HAS BEEN PROMOTED TO VICE PRESIDENT AND DEPUTY TREASURER A NEWLY CREATED POSITION IN WHICH HE WILL REPORT TO THE COMPANY'S RECENTLY NAMED TREASURER JOHN J DELUCCA MR SERKES HAD BEEN VICE PRESIDENT AND ASSISTANT TREASURER OF CORPORATE FINANCE SINCE 1991 9310210086 931021 BUSINESS BRIEF DEAN WITTER DISCOVER CO THIRDPERIOD NET ROSE 52 CREDIT CARD GAINS ARE CITED DEAN WITTER DISCOVER CO SAID NET INCOME JUMPED 52 IN THE THIRD QUARTER FUELED BY GAINS IN BOTH ITS CREDIT CARD AND BROKERAGE GROUPS DEAN WITTER DISCOVER'S EARNINGS LIKE OTHER BIG BROKERAGES FIRMS' IN RECENT WEEKS EXCEEDED ANALYSTS' EXPECTATIONS IN ITS SECOND FULL QUARTER AS A PUBLIC COMPANY DEAN WITTER DISCOVER REPORTED NET OF 1716 MILLION OR 101 A SHARE COMPARED WITH 1131 MILLION OR A 66 CENTS A SHARE PRO FORMA REVENUE ROSE 17 TO 15 BILLION WE CONTINUE TO BENEFIT FROM A POSITIVE ENVIRONMENT IN PARTICULAR LOW INTEREST RATES AND THE FLOW OF ASSETS INTO MUTUAL FUNDS SAID PHILIP J PURCELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE NEW YORK FIRM DEAN WITTER DISCOVER'S BROKERAGE OPERATIONS POSTED A 58 INCREASE IN EARNINGS TO 701 MILLION COMMISSION REVENUE ROSE 35 TO 2263 MILLION AS INVESTOR INTEREST IN EQUITIES FUTURES AND INSURANCE REMAINED STRONG INVESTMENT BANKING REVENUE TOTALED 902 MILLION UP 34 REFLECTING STRONG MARKETS FOR PUBLIC OFFERINGS AND CLOSEDEND MUTUAL FUNDS 9310210085 931021 MARKETING & MEDIA ADVERTISING BURGER KING UNEXPECTEDLY PLACES ITS NATIONAL ACCOUNT IN REVIEW BY KEVIN GOLDMAN BURGER KING UNEXPECTEDLY PLACED ITS NATIONAL ADVERTISING ACCOUNT IN REVIEW SETTING THE STAGE FOR ITS FOURTH AGENCY SHIFT IN FIVE YEARS EXACT BILLINGS COULDN'T BE DETERMINED ALTHOUGH THEY HAVE BEEN ESTIMATED AT MORE THAN 100 MILLION IT IS UNLIKELY D'ARCY MASIUS BENTON & BOWLES THE INCUMBENT AGENCY WILL PARTICIPATE IN THE REVIEW ACCORDING TO A STATEMENT FROM ROY BOSTOCK D'ARCY'S CHAIRMAN WHO WAS INFORMED OF BURGER KING'S DECISION TUESDAY NIGHT AT THE FASTFOOD CHAIN'S HEADQUARTERS IN MIAMI THE REVIEW DOESN'T AFFECT BURGER KING'S RELATIONSHIP WITH THE NEW YORK AGENCY SAATCHI & SAATCHI ADVERTISING WHICH IS RESPONSIBLE FOR BURGER KING CLUB ADS D'ARCY AND SAATCHI WERE SELECTED IN MAY 1989 AS COEQUAL AD AGENCIES AN UNUSUAL ARRANGEMENT BUT SLOWLY D'ARCY MANAGED TO OVERTAKE SAATCHI'S RESPONSIBILITIES AND ABOUT 2 1/2 YEARS AGO MANAGED TO WREST THE VAST MAJORITY OF THE ADVERTISING AWAY THE BURGER KING REVIEW COMES LESS THAN TWO MONTHS AFTER ANOTHER FASTFOOD RESTAURANT CHAIN IMASCO LTD'S HARDEE'S PLACED ITS 81 MILLION ACCOUNT IN REVIEW UNSEATING WPP GROUP'S OGILVY & MATHER HARDEE'S HAS YET TO SELECT ITS NEW AGENCY ALTHOUGH BURGER KING IS THE NO 2 FASTFOOD CHAIN AND EXPERIENCED A GROWTH IN SALES LAST YEAR IT LAGGED BEHIND THE RESTAURANT INDUSTRY'S OVERALL GROWTH RATE AND WAS FAR BEHIND ITS CHIEF COMPETITOR MCDONALD'S ACCORDING TO TECHNOMIC A CHICAGO MARKET RESEARCH AND CONSULTING FIRM IN TECHNOMIC'S ANNUAL TOP 100 CHAIN REPORT BURGER KING RECORDED DOMESTIC SALES OF 53 BILLION IN 1992 A 27 INCREASE OVER THE PREVIOUS YEAR MCDONALD'S HOWEVER HAD SALES OF 132 BILLION A 58 INCREASE AND WENDY'S HAD SALES OF 33 BILLION A 126 INCREASE RESTAURANT SALES OVERALL WERE UP 35 ADVERTISING FROM BURGER KING A UNIT OF GRAND METROPOLITAN PLC HAS BEEN LACKLUSTER FOR YEARS THE LATEST ADS BEGIN WITH A HIGHPITCHED PERSON SHRIEKING I LOVE THIS PLACE BUT APPARENTLY BURGER KING FRANCHISES DIDN'T LOVE THIS CAMPAIGN THE CAMPAIGN WAS TITLED BK TEEVEE AND FEATURED A SHIMMERING BK LOGO ON THE LOWER RIGHTHAND CORNER OF THE SCREEN THE MTV ONAIR PERSONALITY DAN CORTESE WAS FEATURED IN MANY OF THE TELEVISION SPOTS WHICH RELIED ON MTVTYPE RAPID EDITS THE CAMPAIGN WAS DESPERATELY TRYING TO BE HIP AND WAS LIGHT YEARS AWAY FROM COMMERCIALS BY RIVAL MCDONALD'S WHICH HEAVILY RELY ON HOMESPUN FAMILY SITUATIONS BUT BK TEEVEE WAS CONSIDERED FAR BETTER THAN OTHER CAMPAIGNS PARTICULARLY THE DISASTROUS WHERE'S HERB EFFORT FROM WPP GROUP'S J WALTER THOMPSON IN THE 1980S REMEMBER HERB THE NERD HE WAS SUPPOSED TO BE THE ONLY PERSON IN THE US TO NEVER TASTE THE PLEASURE OF BURGER KING'S WHOPPER AMONG MUCH BALLYHOO HE WAS UNVEILED ON THE 1986 SUPER BOWL AS A LOVABLE BALDING ECCENTRIC IN GLASSES WHITE SOCKS AND GAUDY PLAIDS NO CAMPAIGN HAS RESONATED WITH THE CONSUMER AS HAVE IT YOUR WAY DID AFTER THAT WAS RETIRED IN THE EARLY 1980S OTHER EFFORTS INCLUDED FAST FOOD FOR FAST TIMES WE DO IT LIKE YOU'D DO IT SOMETIMES YOU GOTTA BREAK THE RULES YOUR WAY RIGHT AWAY AND WHAT DO YOU SAY WHAT DO YOU SAY YOUR WAY RIGHT AWAY IN SEARCHING FOR THE CORRECT STRATEGIC MESSAGE FOR ITS 5700 US RESTAURANTS BURGER KING FIRED AND HIRED AGENCIES WITH UNUSUAL SPEED IN 1988 THE ACCOUNT BOUNCED FROM J WALTER THOMPSON TO NW AYER AYER WAS FIRED AFTER ONLY 20 MONTHS AND REPLACED BY D'ARCY AND SAATCHI NOW D'ARCY HAS FELT THE BURGER KING AX THE MOVE COMES LESS THAN THREE MONTHS AFTER JAMES JIM ADAMSON WAS PROMOTED TO CHIEF EXECUTIVE OFFICER OF BURGER KING AFTER SERVING AS CHIEF OPERATING OFFICER MR BOSTOCK OF D'ARCY WAS INFORMED OF THE COMPANY'S DECISION BY SIDNEY J FELTENSTEIN JR EXECUTIVE VICE PRESIDENT OF WORLDWIDE MARKETING MR FELTENSTEIN THROUGH A SPOKESWOMAN DECLINED TO COMMENT YESTERDAY BURGER KING SAYS IT PLANS TO CONTACT YETTOBESELECTED AD AGENCIES AND ASK THEM TO FILL OUT QUESTIONNAIRES WE ARE SEEKING A FRESH APPROACH TO OUR ADVERTISING CAMPAIGN THAT WILL REFLECT THE COMPANY'S BACK TO BASICS' PHILOSOPHY MR FELTENSTEIN SAID IN A STATEMENT A COMPANY SPOKESMAN SAYS BURGER KING'S FOCUS IS ITS HAMBURGERS FRENCH FRIES AND COCACOLA ALTHOUGH ITS ARRAY OF ALTERNATIVE CHOICES REMAINS IMPORTANT TO BOOST SALES BURGER KING RECENTLY INSTALLED AN EVERYDAY LOW PRICES POLICY WHICH IS REFLECTED IN THE CURRENT BATCH OF ADVERTISING AND WHICH THE MIAMIBASED COMPANY WANTS TO CONTINUE IN NEW CAMPAIGNS BUT BURGER KING IS FOLLOWING MCDONALD'S VALUE PRICING MENU BURGER KING EXPECTS TO SELECT A NEW AGENCY EARLY NEXT YEAR AND HAVE NEW ADS ON THE AIR SOMETIME IN THE FIRST QUARTER D'ARCY RETAINS THE FAR SMALLER INTERNATIONAL PORTION OF THE BURGER KING ACCOUNT BESIDES CREATING COMMERCIALS D'ARCY ALSO HANDLES BURGER KING'S MEDIA BUYING AND THE SOCALLED FIELD SERVICE WHICH INCLUDES WORKING ON PROMOTIONS WITH INDIVIDUAL FRANCHISEES BURGER KING SAYS IT IS CONSIDERING UNBUNDLING THESE RESPONSIBILITIES IT MAY ASSIGN THEM TO DIFFERENT AGENCIES IT MAY ASSIGN A SMALL HOT SHOT AGENCY THE CREATIVE PORTION AND LEAVE THE ADDITIONAL ASSIGNMENTS TO OTHER AGENCIES THE COMPANY SAYS BUT A SPOKESWOMAN ADDS NOTHING HAS BEEN DECIDED EVERYTHING IS UP FOR GRABS ALTHOUGH VIRTUALLY EVERY AGENCY WOULD NATURALLY CRAVE THE BURGER KING ASSIGNMENT ONE POSSIBILITY IS THE SAN FRANCISCO AGENCY GOODBY BERLIN SILVERSTEIN A UNIT OF OMNICOM GROUP IT WAS THE MOST RECENT AGENCY FOR REGIONAL FASTFOOD CHAIN CARL'S JR ANOTHER POSSIBLE CANDIDATE WPP GROUP'S OGILVY & MATHER HARDEE'S INCUMBENT AGENCY WHICH WAS RECENTLY REMOVED FROM THE REVIEW BACKER SPIELVOGEL BATES NEW YORK AND ITS BIG PHILIPS CONSUMER ELECTRONICS CLIENT A UNIT OF PHILIPS ELECTRONICS NV MUTUALLY DECIDED TO PART WAYS ON THE MAGNAVOX AND PHILIPS ACCOUNTS THE CLIENT SAID IT IS LOOKING FOR A NEW AGENCY BILLINGS FOR THE MAGNAVOX AND PHILIPS BRANDS TOTALED 33 MILLION LAST YEAR ACCORDING TO COMPETITIVE MEDIA REPORTING ADVERTISING INDUSTRY EXECUTIVES CLOSE TO THE ACCOUNT SAID THAT THIS YEAR BILLINGS WERE CLOSER TO 20 MILLION PHILIPS DECLINED TO COMMENT ON BILLINGS BUT SAID IT IS AIMING TO FIND A NEW AGENCY BY JANUARY BACKER A UNIT OF SAATCHI & SAATCHI CO IS THE AGENCY BEHIND THE SMART VERY SMART CAMPAIGN FOR PHILIPS'S MAGNAVOX BRAND STARRING THE BRITISH COMEDIAN JOHN CLEESE IN ADDITION BACKER ALSO CREATED AN ELABORATE COMMERCIAL LAST YEAR FOR PHILIPS'S CDINTERACTIVE VIDEO AND AUDIO COMPACT DISK PLAYER STARRING A COMPUTERGENERATED DINOSAUR A PHILIPS SPOKESMAN SAID THE DECISION WAS MUTUAL AND DUE TO UNPRECEDENTED EXPANSION OF OUR CAPABILITIES BACKER DECLINED TO COMMENT ADVERTISING AGENCY REGISTER NEW YORK IS SCREENING THE FIRST ROUND OF AGENCIES IN THE REVIEW PHILIPS SAID OMNICOM GROUP THE AGENCY HOLDING COMPANY ACQUIRED A 9 EQUITY STAKE IN AEGIS GROUP PLC THE BRITISH HOLDING COMPANY THAT OWNS FRENCH MEDIA BUYER CARAT HOLDINGS SA OMNICOM GROUP PRESIDENT AND CHIEF EXECUTIVE OFFICER BRUCE CRAWFORD SAID THE STAKE IS PURELY AN OMNICOM INVESTMENT AND DOESN'T AFFECT HOW OMNICOM AGENCIES BUY MEDIA IN EUROPE WE HAVE NO PLANS TO INCREASE THE STAKE HE SAID OMNICOM'S BBDO AND DDB NEEDHAM REMAIN MEMBERS OF MEDIA PARTNERSHIP THE MEDIABUYING ALLIANCE IN EUROPE THAT ALSO INCLUDES WPP GROUP'S J WALTER THOMPSON OGILVY & MATHER GREY ADVERTISING AND THE FRENCH AGENCY BOULET DRU DUPUY PETIT TBWA ADVERTISING CONTINUES ITS EXISTING MEDIA ALLIANCE WITH CARAT GM ACCOUNT GENERAL MOTORS CORP TAPPED THE LONDON OFFICE OF SAATCHI & SAATCHI CO'S CME KHBB TO HANDLE AN ESTIMATED 20 MILLION IN ADVERTISING FOR ITS CREDIT CARD IN THE UK THE AGENCY ALSO HANDLES UK ADVERTISING FOR SAAB AUTOS WHICH ARE MARKETED BY A JOINT VENTURE BETWEEN GENERAL MOTORS AND SAABSCANIA AB THE ASSIGNMENT FOLLOWS CME'S DISMISSAL LAST WEEK FROM CHRYSLER CORP'S BIG JEEP/EAGLE ACCOUNT 9310210084 931021 BUSINESS BRIEF CIRCA PHARMACEUTICALS INC CONCERN TO PAY 1 MILLION TO SETTLE PRICEFIXING CASE CIRCA PHARMACEUTICALS INC SAID IT WOULDN'T CONTEST PRICEFIXING CHARGES AND WILL PAY 1 MILLION TO THE US GOVERNMENT IN A SETTLEMENT THE CASE STEMMED FROM A 1992 JUSTICE DEPARTMENT INVESTIGATION IN WHICH CIRCA THEN BOLAR PHARMACEUTICAL CO WAS CHARGED WITH CONSPIRING TO FIX THE PRICE OF A GENERIC VERSION OF THE HYPERTENSION DRUG DYAZIDE CIRCA AND ITS VICE PRESIDENT OF FINANCE LAWRENCE RAISFELD BOTH ENTERED PLEAS OF NO CONTEST TO A ONECOUNT FEDERAL INDICTMENT THAT ALLEGED BOLAR AND THE NOWDEFUNCT VITARINE PHARMACEUTICALS INC CONSPIRED TO FIX PRICES IN 1988 THE COMPANY SAID THE CHARGES AROSE FROM ALLEGATIONS OF A FORMER BOLAR PRESIDENT AND THAT IT IS IN THE COMPANY'S INTEREST TO RESOLVE THE CASE WITHOUT INCURRING THE EXPENSES OF A FULL TRIAL CIRCA WILL TAKE A 1 MILLION THIRDQUARTER CHARGE TO REFLECT THE SETTLEMENT 9310210083 931021 GENERAL DYNAMICS NET DROPPED 39 IN 3RD PERIOD NORTHROP SWUNG TO PROFIT BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL DYNAMICS CORP'S THIRDQUARTER NET INCOME DROPPED 39 DESPITE INCREASED PROFITS FROM CONTINUING OPERATIONS WHILE NORTHROP CORP RETURNED TO THE BLACK AS A RESULT OF SHARPLY REDUCED LOSS PROVISIONS ON PENTAGON CONTRACTS GENERAL DYNAMICS REPORTED A PROFIT OF 73 MILLION OR 231 A SHARE INCLUDING A 24 MILLION NET SECURITIES GAIN COMPARED WITH NET INCOME OF 120 MILLION OR 378 A SHARE A YEAR EARLIER THE PREVIOUS YEAR'S RESULTS INCLUDED 91 MILLION IN EARNINGS FROM DISCONTINUED OPERATIONS SALES ROSE 5 TO 900 MILLION FROM 857 MILLION GENERAL DYNAMICS' RESULTS ROUGHLY IN LINE WITH MOST ANALYSTS' EXPECTATIONS SHOWED CONTINUING PRODUCTIVITY GAINS AND HIGHER PROFIT MARGINS AT THE FALLS CHURCH VA CONCERN'S NUCLEARSUBMARINE AND ARMOREDVEHICLE OPERATIONS NORTHROP'S PROFIT OF 26 MILLION OR 54 CENTS A SHARE COMPARES WITH A NET LOSS OF 32 MILLION OR 69 CENTS A SHARE A YEAR EARLIER THE COMPANY ATTRIBUTED THE IMPROVEMENT PRIMARILY TO A SUBSTANTIALLY SMALLER LOSS PROVISION OF 14 MILLION FOR THE CLASSIFIED TRISERVICE STANDOFF ATTACK MISSILE COMPARED WITH A 152 MILLION LOSS PROVISION A YEAR EARLIER NORTHROP SAID THE LATEST QUARTER'S EARNINGS WERE REDUCED BY AN ADJUSTMENT OF 20 MILLION OR 43 CENTS A SHARE DUE TO THE RESTATEMENT OF PRIOR DEFERRED TAX LIABILITIES NORTHROP'S REVENUE FELL NEARLY 6 TO 122 BILLION FROM 129 BILLION REFLECTING REVENUE DECLINES IN ITS B2 STEALTH BOMBER AND VARIOUS ELECTRONICS PROGRAMS FOR THE FOURTH QUARTER OF 1993 THE LOS ANGELES COMPANY SAID IT EXPECTS TO REPORT SALES OF ABOUT 14 BILLION IN THE FIRST NINE MONTHS OF THE YEAR NORTHROP HAD NET INCOME OF 131 MILLION OR 274 A SHARE UP 98 FROM 66 MILLION OR 139 A SHARE SALES SLUMPED ABOUT 6 TO 381 BILLION FROM 404 BILLION GENERAL DYNAMICS EARNINGS' REPORT SHOWED STRONG RESULTS FROM CONTINUING OPERATIONS ALL BUT 1 MILLION OF THE COMPANY'S LATEST THIRDQUARTER EARNINGS WERE REPORTED AS PROFIT FROM CONTINUING OPERATIONS THAT PROFIT OF 72 MILLION OR 228 A SHARE COMPARES WITH PROFIT OF 29 MILLION OR 91 CENTS A SHARE IN THE CONTINUINGOPERATIONS CATEGORY A YEAR EARLIER JAMES MELLOR PRESIDENT OF GENERAL DYNAMICS SAID THE COMPANY EXPECTS FURTHER PRODUCTIVITY GAINS FROM REENGINEERING PROGRAMS UNDER WAY AT THE LAND SYSTEMS DIVISION GENERAL DYNAMICS ALSO POINTED TO QUARTERONQUARTER AND YEARONYEAR PROFIT GAINS BY ITS ELECTRIC BOAT UNIT THE COMPANY'S RELATIVELY UPBEAT FIGURES FOR THE SHORT TERM HOWEVER WERE TEMPERED BY A ROUGHLY 1 BILLION DROP IN THE PAST YEAR IN ITS TOTAL ORDER BACKLOG FOR CONTINUING OPERATIONS GENERAL DYNAMICS' PROFIT FOR THE FIRST NINE MONTHS OF THE YEAR WAS 821 MILLION OR 2603 A SHARE UP FROM 641 MILLION OR 1613 A SHARE IN 1992 SALES FOR THE NINEMONTH PERIOD EDGED UP TO 257 BILLION FROM 256 BILLION A YEAR EARLIER IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE GENERAL DYNAMICS SHARES FELL 1375 TO 9525 AND NORTHROP SHARES DROPPED 625 CENTS TO 35 9310210082 931021 STOCK PICKERS SLICE UP ASIA BY SECTOR BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG FROM SYDNEY TO TOKYO THE FLIGHT BY US INVESTORS TO THIS REGION'S BOOMING ECONOMIES IS CHALLENGING THE TRADITIONAL WAY OF PICKING WINNING ASIAN STOCKS THE ESTABLISHED STOCKPICKING FORMULA WORKS SOMETHING LIKE THIS THINGS ARE LOOKING UP IN THAILAND BUY THAI STOCKS ANY OF THEM WILL DO BUT LEHMAN BROTHERS IS TAKING A DIFFERENT APPROACH IF YOU WANT TO KNOW WHAT THE US INVESTMENT BANK THINKS ABOUT MALAYSIA'S AUTO MAKER ASK ONE OF ITS ANALYSTS IN TOKYO BUT IF YOU WANT AN OPINION ON JAPANESE AIRLINES OR TOKYO'S BIG TELECOMMUNICATIONS STOCKS TRY THE FIRM'S HONG KONG OFFICE LEHMAN'S MAPS AREN'T UPSIDE DOWN THE FIRM IS FOCUSING REGIONAL RESEARCH ON INDUSTRIAL SECTORS NOT COUNTRIES BECAUSE IT FIGURES THAT'S HOW MOST POWERFUL US INVESTORS VIEW MARKETS OTHER BROKERAGE FIRMS IN ASIA WHOSE ANALYSTS TRADITIONALLY COVER COMPANIES IN THEIR BACKYARDS ARE TOYING WITH FOLLOWING LEHMAN'S LEAD THEY ARE VYING FOR A SLICE OF THE BUSINESS COMING FROM US INSTITUTIONAL INVESTORS WHO HAVE DOMINATED STOCK MARKETS HERE IN RECENT WEEKS A FEW YEARS DOWN THE ROAD THE WHOLE REGION WILL BE LOOKED UPON AS ONE MARKET RATHER THAN SEPARATE COUNTRIES SAYS WINNIE LEE ASSOCIATE DIRECTOR OF AETNA INVESTMENT MANAGEMENT HONG KONG LTD MAKING MONEY UNTIL THAT HAPPENS WILL BE A MATTER OF PICKING WHICH STOCKS HAVE BEEN UNDERVALUED RELATIVE TO THOSE OF SIMILAR COMPANIES IN OTHER MARKETS SHE ADDS ONE GROUP EMERGING AS A FAVORITE AMONG INVESTORS NEW TO THE REGION IS TELECOMMUNICATIONS THESE STOCKS HAVE BEEN OUTPACING THEIR RESPECTIVE MARKETS SHARES OF HONG KONG TELECOMMUNICATIONS LTD LED THE MARKET'S RALLY SO FAR THIS MONTH WITH A 25 GAIN COMPARED WITH THE HANG SENG INDEX'S 16 RISE IN THE PHILIPPINES SHARES OF PHILIPPINE LONG DISTANCE TELEPHONE CO JUMPED 26 COMPARED WITH A 93 RISE FOR THE MANILA COMPOSITE INDEX AND SHARES OF TELECOM CORP OF NEW ZEALAND HAVE GAINED 98 SO FAR THIS MONTH AGAINST THE NZSE40 INDEX'S RISE OF 71 SIGNIFICANTLY INVESTORS HAVE ALSO BEEN SNAPPING UP TELECOM STOCKS IN THE US HOPING TO PROFIT FROM THE GROWING TIES BETWEEN THAT SECTOR AND HIGHTECH INFORMATION COMPANIES IF US BUYING IS THE DOMINANT FEATURE IN HONG KONG'S MARKET IT'S UNSURPRISING THAT HONG KONG TELECOM HAS BEEN GIVEN A USSTYLE PRICE MULTIPLE OF ABOUT 245 TIMES ESTIMATED 1994 PERSHARE PROFIT SAYS HENRY THORNTON INVESTMENT DIRECTOR OF CREDIT LYONNAIS INTERNATIONAL ASSET MANAGEMENT HK LTD HE ADDS THAT THE AVERAGE HONG KONG FUND MANAGER MISSED OUT ON THAT NOT ALL ASIA HANDS ARE CONVERTING TO THE SECTORAL STRATEGIES ESPOUSED BY LEHMAN IF YOU GET YOUR COUNTRY ANALYSIS WRONG YOU'LL HAVE TROUBLE WITH YOUR SECTOR BET SAYS STUART COOK A DIRECTOR AND REGIONAL STRATEGIST AT BARING SECURITIES LTD HE SAYS TELECOMMUNICATIONS STOCKS ARE AMONG THE FEW GROUPS BEST ANALYZED IN COMPARISON WITH SIMILAR STOCKS IN OTHER MARKETS LARGELY BECAUSE SUCH COMPANIES EVERYWHERE OPERATE SIMILARLY AND IN THE SAME INTERNATIONAL MARKETPLACE MOST ASIAN STOCK MARKETS HAVE FEWER INDUSTRIES COMPARED WITH EUROPEAN AND US MARKETS BECAUSE OF THAT MR COOK SAYS INDIVIDUAL SECTORS AREN'T USUALLY STRONG ENOUGH TO MOVE AGAINST A WHOLE STOCK MARKET THAT'S WHY STOCKS IN MOST ASIAN MARKETS TEND TO MOVE TOGETHER HE ADDS SO ONE OF BARING'S PRIME RESEARCH TOOLS IS THE COUNTRY MATRIX IT ADDS EACH STOCK MARKET'S FACTORS SUCH AS PROFIT GROWTH AND MARKET SENTIMENT TO THE COUNTRY'S ECONOMIC FACTORS SUCH AS INFLATION THE RESULTING NUMBER IS COMPARED WITH THOSE OF OTHER MARKETS WHICH STRATEGISTS RANK BY INVESTMENT POTENTIAL EARLY THIS WEEK THE METHOD SUGGESTED THAT SHENZHEN'S MAIN STOCK MARKET INDEX WAS THE MOST UNDERVALUED IN ASIA STILL 50 BELOW WHERE IT SHOULD BE AND THAILAND WAS 20 UNDER FAIR VALUE OFTEN THE MATRIX IS EARLY MR COOK CONCEDES BUT VERY FEW MARKETS CONFOUND THE MODEL FOR TOO LONG LEHMAN CRUNCHES ITS NUMBERS IN A VERY DIFFERENT WAY WE DON'T NEED AN EXPERT ON SAY THAILAND SAYS PAUL SUMMER VILLE THE TOKYOBASED DIRECTOR OF ASIAN RESEARCH FOR LEHMAN SOME MOREESTABLISHED ASIAN BROKERAGE FIRMS PROBABLY HAVE A VERY GOOD FRANCHISE AS AN EXPERT ON THAILAND OR KOREA BUT THEY ARE NOT GLOBAL INVESTMENT BANKS HE SAYS BECAUSE IT IS ONE LEHMAN'S CLIENTS ARE THE BIG INSTITUTIONS THAT COULD QUICKLY MAKE US FIRMS' ROOKIE ASIAN OFFICES INTO THE KINGMAKERS OF ASIA'S STOCK MARKETS INSTITUTIONAL INVESTORS NOW ACCOUNT FOR THE BULK OF STOCKMARKET TRADING IN HONG KONG SAYS BROKERAGE SMITH NEW COURT FAR EAST LTD IN A REPORT THIS MONTH AND MOST OF THEM HAVE GLOBAL BACK GROUNDS INSTITUTIONAL INVESTORS PROBABLY WON'T BE THE ONLY CLIENTS READING LEHMAN'S RE SEARCH OTHER INTERESTED INVESTORS MIGHT BE SOME US COMPANIES THAT ARE SHOPPING TO BUY UP ENTIRE ASIAN COMPANIES TO SUIT SUCH POWER CLIENTS LEHMAN IS NOW BUILDING A TEAM THAT IT EXPECTS WILL COMBINE 10 MACRO ANALYSTS WHO STUDY ASIA'S ECONOMIES WITH SEPARATE TEAMS OF ASIAN SECTOR ANALYSTS BASED ONLY IN HONG KONG AND TOKYO THE ANALYST WRITING ABOUT JAPAN AIR LINES CO IS AN AIRLINES EXPERT BASED IN HONG KONG AND THE ONE COVERING MALAYSIA'S PERUSAHAAN OTOMOBIL NASIONAL WORKS IN TOKYO WHERE HE LEARNED ABOUT AUTOS COVERING SUCH JAPANESE COMPANIES AS TOYOTA MOTOR CORP THAT RECIPE HAS ITS RISKS JAPAN'S COMPETITIVE AUTO INDUSTRY IS DIFFERENT FROM THE NEAR MONOPOLY THAT EXISTS IN MALAYSIA SO SOMEONE WHO IS VERY FAMILIAR WITH NISSAN MAY NOT BE THE BEST PERSON TO ANALYZE PERUSAHAAN OTOMOBIL SAYS AETNA'S MS LEE BUT SHE ACKNOWLEDGES SUCH AS ANALYST WOULD KNOW THE RIGHT QUESTIONS TO ASK ABOUT ANY AUTO COMPANY AT LEAST ONE OLDSTYLE FIRM IS MODIFYING ITS COUNTRYBYCOUNTRY APPROACH JARDINE FLEMING SECURITIES LTD IS ASSEMBLING A SMALL GROUP OF ANALYSTS TO CONDUCT SECTORAL RESEARCH NOT EVERY SECTOR IS SUITABLE FOR THIS KIND OF APPROACH SAYS COLIN BRADBURY JARDINE FLEMING'S REGIONAL STRATEGIST BUT INCREASINGLY US INVESTORS ARE LOOKING AT THESE MARKETS THE WAY THEY LOOK AT THEIR OWN 9310210081 931021 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN UKRAINE IS ON THE VERGE OF FINANCIAL COLLAPSE AND MUST INCREASE REVENUES AND CUT GOVERNMENT SPENDING THE CENTRAL BANK CHAIRMAN VIKTOR YUSHENKO SAID THE BIG FORMER SOVIET REPUBLIC IS NEARLY BROKE HE SAID AND WITH INFLATION RAMPAGING AT 50 A MONTH SINCE JULY THE SITUATION WON'T IMPROVE THIS YEAR PARLIAMENTARY HARDLINE OPPONENTS OF REFORM HAVE PARALYZED EFFORTS TO BOOST THE ECONOMY MR YUSHENKO CALLED FOR NEW TAXES AND LOWER GOVERNMENT OUTLAYS TO NARROW THE BUDGET DEFICIT WHICH HAS PROVIDED THE MAIN FUEL FOR INFLATION AND WHICH COULD TOTAL 749 MILLION THIS YEAR OR 16 OF GROSS NATIONAL PRODUCT HE FAULTED THE PRESIDENT AND PARLIAMENT FOR ORDERING THE CENTRAL BANK TO ISSUE CREDITS TO FAILING INDUSTRIES SAYING THIS LENDING HAS BOOSTED INFLATION HE ALSO URGED FREEING PRICES AND SPEEDING PRIVATIZATIONS BOTH PROGRAMS HAVE BEEN DELAYED BY LAWMAKERS RUSSIAN PRESIDENT BORIS YELTSIN SOON WILL LIFT MOST REMAINING RESTRICTIONS ON LAND THE INTERFAX NEWS AGENCY SAID HIS DRAFT DECREE WOULD CONVEY FULL PROPERTYOWNERSHIP RIGHTS ENDING ONE OF THE LAST VESTIGES OF THE FORMER SOVIET SYSTEM THE MEASURE COVERS AGRICULTURAL LAND AS WELL AS GARDEN PLOTS GRANTED MAINLY TO CITY DWELLERS LAND COULD BE BOUGHT SOLD INHERITED MORTGAGED LEASED AND EXCHANGED INVESTMENTS IN LAND COMPANIES WOULD BE ALLOWED MEANWHILE THE GOVERNMENT SAID 81000 OR A THIRD OF STATEOWNED ENTERPRISES NOW ARE IN PRIVATE HANDS AND PRIVATIZATION IS CONTINUING RAPIDLY POLAND SOLD OFF 2385 OR 28 OF 8441 STATE ENTERPRISES FOR A TOTAL OF 473 MILLION IN THE PAST THREE YEARS A PACE THE GOVERNMENT SAID WOULD RESHAPE ITS ECONOMY IN A WESTERN MOLD BY THE END OF 1996 THE PRIVATIZATION PROGRAM COULD CHANGE THOUGH ONCE A NEW GOVERNMENT WITH COMMUNIST ROOTS TAKES OFFICE SOON FOUR YEARS AFTER THE FALL OF POLISH COMMUNISM THE PRIVATE SECTOR EMPLOYS 60 OF THE WORK FORCE AND ACCOUNTS FOR OVER 50 OF GROSS DOMESTIC PRODUCT MOST SHOPS WAREHOUSES RESTAURANTS AND SERVICE FIRMS ARE IN PRIVATE HANDS POLAND ESTIMATED THE ECONOMY WILL GROW 45 THIS YEAR INDUSTRIAL OUTPUT WILL INCREASE 7 AND INFLATION WILL SLOW TO 37 FROM 43 LAST YEAR EUROPEAN CENTRAL BANK GOVERNORS NOMINATED ALEXANDRE LAMFALUSSY A HUNGARIANBORN BELGIAN TO BE PRESIDENT OF THE EUROPEAN MONETARY INSTITUTE THE EMI TO BEGIN OPERATIONS JAN 1 IS VIEWED AS THE FORERUNNER TO A EUROPEAN CENTRAL BANK UNDER A PROPOSED EUROPEAN COMMUNITY CURRENCY UNION IT WILL MONITOR EC MEMBERS' ECONOMIC PERFORMANCE PREPARE FOR THE CURRENCY UNION AND DESIGN BANKNOTES FOR A COMMON EC CURRENCY A FORMER COMMERCIAL BANKER THE 64YEAROLD MR LAMFALUSSY SINCE 1985 HAS BEEN GENERAL MANAGER OF THE BANK FOR INTERNATIONAL SETTLEMENTS A GROUP OF CENTRAL BANKS COMPUTER HACKERS ALMOST SUCCEEDED IN STEALING 57 MILLION FROM THE RUSSIAN CENTRAL BANK THE THIEVES ACCESSED THE BANK'S COMPUTER LAST MONTH AND TRIED TO TRANSFER MONEY INTO COMMERCIAL BANK ACCOUNTS BUT THE BANK ULTIMATELY DETECTED THE TIMECONSUMING PROCESSING THE BANK HASN'T FULLY COMPUTERIZED INTERBANK TRANSFERS TO REPLACE ITS OUTDATED TELEGRAPH SYSTEM MAKING THEFT EASIER THIS YEAR ALONE THE BANK SAID IT HAS FOILED THEFT AND FRAUD ATTEMPTS INVOLVING 251 MILLION BRAZIL SAID PER CAPITA INCOME LAST YEAR SHRANK 95 TO 2753 COMPARED WITH 1990 ECONOMIC OUTPUT THE TOTAL VALUE OF GOODS AND SERVICES IN THE NATION OF ABOUT 150 MILLION PEOPLE FELL 1 LAST YEAR TO 412 BILLION BRAZILIANS' EARNING POWER NOW IS LESS THAN IT WAS IN 1980 EVEN THOUGH THE ECONOMY HAS GROWN 16 BECAUSE THE POPULATION HAS INCREASED 26 BEIJING RECLAIMED CONTROL OF CHINESE COMPANY PAYROLLS APPARENTLY IN AN EFFORT TO REDUCE INFLATIONARY WAGE INCREASES PRIVATE AND STATEOWNED COMPANIES MUST SUBMIT PAYROLL BUDGETS TO LOCAL GOVERNMENTS' LABOR DEPARTMENTS FOR APPROVAL FIRMS RETAIN THE AUTHORITY TO ALLOCATE THE CLEARED BUDGET SUMS AMONG WORKERS THE NEW RULES APPROVED BY CHINA'S CABINET EXCLUDE FOREIGNOWNED COMPANIES AND CHINESEFOREIGN JOINT VENTURES THE GOVERNMENT HAD FREED COMPANIES TO MAKE THEIR OWN BUSINESS DECISIONS LAST JULY FOR EXAMPLE STATEOWNED ENTERPRISES WERE ALLOWED TO SET THEIR EMPLOYEES' WAGES RATHER THAN FOLLOW A WAGE SCALE BASED MAINLY ON SENIORITY BUT MANY COMPANIES HAVE USED THEIR NEW FREEDOM TO RAISE WAGES FASTER THAN PRODUCTIVITY PROMPTING CONCERN IN THE GOVERNMENT THEY WILL WIND UP NEEDING BAILOUTS ECONOMISTS ALSO ARE WORRIED ABOUT A WAGEPRICE SPIRAL IN WHICH COMPANIES RAISE WAGES TO KEEP UP WITH INFLATION AND THUS HELP FUEL MORE INFLATION VIETNAM HAS BROUGHT INFLATION DOWN TO A SEVENYEAR LOW THE ANNUAL RATE WHICH HIT 775 IN 1986 RAN AT 57 IN THIS YEAR'S FIRST NINE MONTHS AND COULD END UP BELOW THE 1993 TARGET OF 15 FRANCE'S TRANSPORT MINISTER TERMED IRREVOCABLE STATEOWNED AIR FRANCE'S PLAN TO RETURN TO PROFITABILITY BY SLASHING JOBS AND WAGES AS WORKERS ON STRIKE FOR A SECOND DAY AT PARIS AIRPORTS CAUSED 500 FLIGHT CANCELLATIONS THE WALKOUT IS COSTING AIR FRANCE 12 MILLION A DAY IN LOST BUSINESS INCLUDING A WEEKOLD SHUTDOWN OF CARGO OPERATIONS 9310210080 931021 ABREAST OF THE MARKET BLUE CHIPS ADVANCE BUT WORRIES OVER PROFITS DEPRESS MOST STOCKS BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK WORRIES ABOUT PROFITS LEFT STOCKS MOSTLY LOWER BUT BLUE CHIPS MANAGED A LATE RALLY THE DOW JONES INDUSTRIAL AVERAGE JUMPED 978 OR 027 TO 364510 JUST SEVEN POINTS FROM ITS AUGUST RECORD BUT BROADER INDEXES SLIPPED AND SEVERAL INDIVIDUAL ISSUES WERE CLOBBERED AFTER EARNINGS NEWS WMX REPORTED LOWER THIRDQUARTER OPERATING EARNINGS CIRCUS CIRCUS PROJECTED A PROFIT DECLINE IT'S A NERVOUS MARKET IT WAS ONE OF THOSE DAYS WHERE THE GOOD NEWS WASN'T REWARDED AND THE BAD NEWS WAS PUNISHED SAID MICHAEL METZ MARKET STRATEGIST AT OPPENHEIMER & CO SYBASE A SOFTWARE COMPANY FOR EXAMPLE RELEASED BETTERTHANEXPECTED EARNINGS LATE TUESDAY AND WAS UPGRADED BY SEVERAL BROKERAGE FIRMS YESTERDAY ITS SHARES SLUMPED 1 1/4 TO 68 1/2 ON NASDAQ A THIRD DAY OF STRENGTH IN ECONOMICALLY SENSITIVE ISSUES HELPED LIFT THE INDUSTRIAL AVERAGE INTERNATIONAL PAPER JUMPED 1 5/8 TO 60 1/4 CATERPILLAR ROSE 5/8 TO 83 1/8 AND SEARS ROEBUCK INCREASED 1 5/8 TO 58 THE STANDARD & POOR'S 500 STOCK INDEX DECLINED 014 OR 003 TO 46607 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 028 OR 011 TO 25828 NASDAQ STOCKS WHICH PLUMMETED 18 TUESDAY WERE UNABLE TO HOLD ONTO SOME EARLY GAINS THE NASDAQ COMPOSITE INDEX LOST 046 OR 006 TO 76825 THERE WAS A LITTLE BIT OF BARGAINHUNTING HERE AND THERE BUT MOST OF THE DAY THE AGGRESSIVE ACTION WAS ON THE SELL SIDE SAID TRUDE LATIMER A VICE PRESIDENT AT WAYNE GRAYSON CAPITAL ANALYSTS SAID INVESTORS CONTINUE TO SWITCH MONEY FROM STOCK GROUP TO STOCK GROUP RATHER THAN PUMPING NEW CAPITAL INTO EQUITIES CYCLICALS THIS WEEK'S STARS FELL LAST WEEK DESPITE RECORDBREAKING STRENGTH ELSEWHERE NOW THE ROLES HAVE REVERSED THE MARKET SEEMS TO BE RUNNING OUT OF MONEY TO TAKE EVERYTHING UP PORTFOLIO MANAGERS SELL A TO BUY B WHICH GIVES YOU A ROTATIONAL ENVIRONMENT AND NO ALLENCOMPASSING MOVES SAID OPPENHEIMER'S MR METZ WMX MEANWHILE TUMBLED AFTER IT POSTED EARNINGS FROM OPERATIONS OF 39 CENTS A SHARE DOWN FROM 44 CENTS A YEAR AGO AFTER A RESTRUCTURING CHARGE AND AN INCREASED INCOME TAX PROVISION IT HAD A LOSS FOR THE PERIOD OF 26 CENTS A SHARE OTHER ENVIRONMENTAL SERVICES STOCKS FOLLOWED BROWNINGFERRIS LOST 1 7/8 TO 21 1/8 OGDEN CORP FELL 3/4 TO 25 CIRCUS CIRCUS SLUMPED FOLLOWING ITS PREDICTION THAT THIRDQUARTER EARNINGS FROM OPERATIONS WILL SLIP TO BETWEEN 36 CENTS AND 40 CENTS A SHARE FROM 42 CENTS A YEAR AGO DEAN WITTER REYNOLDS DOWNGRADED THE STOCK TO ACCUMULATE FROM BUY FOLLOWING THE NEWS THAT NEWS HELPED SEND OTHER CASINORELATED SHARES SLIDING PROMUS DROPPED 4 TO 74 5/8 CAESARS WORLD 1/2 TO 47 MIRAGE RESORTS 3 5/8 TO 52 3/8 AND INTERNATIONAL GAME TECHNOLOGY 1 3/8 TO 36 3/4 TECHNOLOGY STOCKS WERE MOSTLY HIGHER AFTER COMPAQ COMPUTER REPORTED HIGHERTHANEXPECTED QUARTERLY EARNINGS OF 126 A SHARE MORE THAN DOUBLE ITS YEARAGO PROFIT OF 61 CENTS COMPAQ ADDED 2 1/2 TO 64 7/8 ELSEWHERE MOTOROLA ADDED 1/2 TO 102 AND INTERNATIONAL BUSINESS MACHINES GAINED 1/4 TO 43 5/8 ON NASDAQ INTEL CLIMBED 1/2 TO 62 3/4 AND MICROSOFT ROSE 3/4 TO 81 AFTER THE MARKET CLOSED MICROSOFT REPORTED NET INCOME OF 79 CENTS A SHARE FOR ITS FIRST QUARTER UP FROM 70 CENTS DIGITAL EQUIPMENT THOUGH SLIPPED 7/8 TO 35 1/8 AFTER THE COMPUTER MAKER RECORDED A WIDERTHANEXPECTED FIRSTQUARTER LOSS IT HAD A DEFICIT OF 76 CENTS A SHARE BEFORE AN ACCOUNTING ADJUSTMENT COMPARED WITH A LOSS LAST YEAR OF 204 UPJOHN ADDED 3 TO 35 A STUDY PRESENTED YESTERDAY SHOWED THAT A DRUG MADE BY THE COMPANY DECREASED MORTALITY IN PATIENTS WITH RUPTURED BRAIN ANEURYSMS SEPARATELY OBSERVERS SAID LONGSTANDING TAKEOVER RUMORS ABOUT UPJOHN AND OTHER DRUG COMPANIES RESURFACED PHILIP MORRIS LOST 7/8 TO 51 7/8 RJR NABISCO FELL 1/4 TO 4 7/8 AND AMERICAN BRANDS DECLINED 3/4 TO 33 5/8 THE WALL STREET JOURNAL REPORTED THAT PRESIDENT CLINTON HAS DECIDED TO SEEK A 75 CENTAPACK INCREASE IN THE CIGARETTE TAX TO HELP FINANCE HIS HEALTHCARE REFORM INITIATIVES REEBOK INTERNATIONAL GAINED 1 3/8 TO 28 7/8 THE FOOTWEAR CONCERN HAD NET INCOME OF 82 CENTS A SHARE IN THE THIRD QUARTER EXCLUDING A CHARGE COMPARED WITH A YEARAGO PROFIT OF 80 CENTS IT SAID FIRSTQUARTER FOOTWEAR AND APPAREL BOOKINGS ARE AT ENCOURAGING LEVELS PREMARK INTERNATIONAL ADDED 3 1/8 TO 69 1/2 AFTER GOLDMAN SACHS UPGRADED A RATING ON THE STOCK TO MODERATE OUTPERFORMER FROM MARKET PERFORMER THE STOCK WAS UP 2 3/8 TUESDAY AFTER THE COMPANY SAID ITS EARNINGS IMPROVED CABLEVISION SYSTEMS ADDED 3 3/8 TO 64 5/8 ON THE AMERICAN STOCK EXCHANGE U S WEST IS SAID TO BE IN TALKS WITH THE WOODBURY NY CONCERN ABOUT BUYING ALL OR PART OF THE COMPANY U S WEST SHARES ROSE 1 TO 49 3/4 9310210079 931021 ECONOMY WHITE HOUSE SCALES BACK NAFTA TAXES JUST ONE DAY AFTER OUTLINING INCREASES BY DAVID WESSEL AND ASRA Q NOMANI STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON TOP CLINTON ADMINISTRATION OFFICIALS BEGAN SCALING BACK A TAX INCREASE THEY PROPOSED TO OFFSET TARIFF REVENUES THAT WOULD BE LOST UNDER THE NORTH AMERICAN FREE TRADE AGREEMENTJUST ONE DAY AFTER THEY HAD DETAILED THE TAX PLAN TO CONGRESS US TRADE REPRESENTATIVE MICKEY KANTOR THIS WEEK TOLD CONGRESS THAT THE ADMINISTRATION WAS PLANNING TO DOUBLE THE BORDERCROSSING USER FEES LEVIED ON INTERNATIONAL AIRLINE AND CRUISE PASSENGERS TRUCKERS AND RAILROADS THE PLAN WAS AIMED AT RAISING 25 BILLION OVER FIVE YEARS TO MAKE UP FOR LOST TARIFF REVENUES AND PAY FOR JOBTRAINING AND ENVIRONMENTAL PROGRAMS BUT TREASURY SECRETARY LLOYD BENTSEN SAID YESTERDAY THAT THE ADMINISTRATION MAY HAVE TO LIMIT THE INCREASE TO ABOUT HALF THAT SUM OR ROUGHLY WHAT IT WOULD TAKE TO COVER THE COST OF THE VARIOUS GOVERNMENT INSPECTIONS REQUIRED BY NAFTA LAWMAKERS SAID WHITE HOUSE BUDGET DIRECTOR LEON PANETTA TOLD THEM MUCH THE SAME THING TO COME UP WITH THE REMAINING FUNDS OTHER OFFICIALS SAID THE ADMINISTRATION IS CONSIDERING AN ACCOUNTING GIMMICK REQUIRING BANKS TO MORE RAPIDLY FORWARD TO THE GOVERNMENT THE TAX PAYMENTS MADE BY EMPLOYERS NO FINAL DECISION HAS BEEN MADE TWENTYSEVEN REPUBLICAN SUPPORTERS OF NAFTA IN THE HOUSE HAVE STIRRED CONTROVERSY BY OBJECTING TO THE WHITE HOUSE PROPOSAL TO DOUBLE TO 10 THE FEE ON INTERNATIONAL AIRLINE AND CRUISE TICKETS AND THE FEE CHARGED BORDERCROSSING TRUCKS AND TO DOUBLE TO 15 THE FEE ON TRAINS LAWMAKERS SAID MR PANETTA INDICATED THAT THE ADMINISTRATION NOW IS CONSIDERING RAISING THE TICKET TAX ONLY TO 750 WHILE STICKING TO THE PROPOSALS FOR TRUCKS AND TRAINS THE AIRLINE INDUSTRY ARGUES THAT ANY INCREASE IN THE TICKET TAX WOULD BE AN UNFAIR BURDEN ON AN ALREADY AILING INDUSTRY THE FEE INCREASE IS STILL VERY MUCH ON THE TABLE MR PANETTA TOLD REPORTERS AFTER MEETING WITH REPUBLICANS AND DEMOCRATS I'M FEELING MUCH MORE CONFIDENT THAT WE'RE GOING TO BE ABLE TO FIND THE OPTIONS TO BE ABLE TO PUT THE FUNDING PIECE TOGETHER BY LAW CONGRESS MUST OFFSET THE REVENUES LOST BY CUTTING TARIFFS ON IMPORTS FROM MEXICO EITHER BY REVENUE INCREASES OR CUTS IN FEDERAL BENEFIT PROGRAMS MR BENTSEN SAID HE HAD SUGGESTED TO SOME OF THE REPUBLICANS THAT THEY COME UP WITH ALTERNATIVES THEY IN TURN SUGGESTED THAT THE WHITE HOUSE DO SO HE SAID THE TRANSPORTATION FEES WERE CHOSEN BECAUSE THE INDUSTRY WILL BENEFIT SO MUCH FROM NAFTA AND BECAUSE THE FEES ENACTED IN 1986 HAVEN'T BEEN RAISED SINCE MEANWHILE PRESIDENT CLINTON TRIED YESTERDAY TO COUNTER CRITICISM THAT HE HASN'T BEEN DOING ENOUGH TO WIN CONGRESSIONAL SUPPORT FOR NAFTA WHICH FACES HOUSE AND SENATE VOTES THIS FALL MR CLINTON DELIVERED A SPEECH UNDER A BIG TENT ON THE WHITE HOUSE LAWN FREQUENTLY LOWERING HIS VOICE TO SHOW CONCERN FOR THE PLIGHT OF US WORKERS AND THEN PUNCTUATING POINTS ABOUT US COMPETITIVENESS BY POUNDING HIS FIST ON A LECTERN STANDING NEAR A SLEW OF PRODUCTS US COMPANIES BROUGHT TO THE WHITE HOUSE TO SHOWCASE THEIR EXPORTS TO MEXICO MR CLINTON SAID THERE'S BEEN TOO MUCH FEARMONGERING ON THE OTHER SIDE A CLEAR REFERENCE TO TEXAS BILLIONAIRE ROSS PEROT'S ATTACKS ON NAFTA BUT THE ADMINISTRATION HAS STARTED ADOPTING A TONE OF FEAR IN ITS MESSAGE THIS WEEK MR CLINTON REPEATED WARNINGS EXPRESSED BY MR KANTOR MR BENTSEN AND LABOR SECRETARY ROBERT REICH THIS WEEK THAT JAPAN AND EUROPE WILL FILL ANY VOID THE US LEAVES WITH A DEFEAT OF NAFTA WHAT WOULD WE DO IN AMERICA IF WE TURN AWAY FROM THIS AND THEY MAKE THIS SORT OF ARRANGEMENT WITH JAPAN OR WITH EUROPE HE SAID I'M TELLING YOU EVERYTHING PEOPLE WORRIED ABOUT IN THE 1980S WILL GET WORSE IF THIS THING IS VOTED DOWN AND WILL GET BETTER IF IT'S VOTED UP IN A SIMILAR VEIN FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN YESTERDAY SAID THAT REJECTION OF NAFTA WOULD HAVE A VERY WRENCHING EFFECT ON THE US AND THE ENTIRE REGION SEPARATELY LABOR SECRETARY REICH YESTERDAY ESTIMATED THAT AT MOST 11250 WORKERS WOULD LOSE THEIR JOBS IN THE 18 MONTHS AFTER NAFTA IS ENACTED IN A BOW TO THE TRICKY POLITICS OF THE ISSUE THE ADMINISTRATION IS SEEKING A 90 MILLION UNEMPLOYMENT AID AND TRAINING PROGRAM AS AN INSURANCE POLICY FOR THOSE WORKERS UNDER THE NAFTA JOBS PROGRAM WHICH WOULD RUN FOR 18 MONTHS AFTER THE PACT TAKES EFFECT WORKERS AT INDUSTRIES THAT CUT BACK BECAUSE OF INCREASED IMPORTS FROM MEXICO WOULD BE ELIGIBLE FOR BENEFITS AS WOULD WORKERS WHOSE COMPANIES RELOCATE TO TAKE ADVANTAGE OF MEXICO'S LOWER WAGES BENEFITS WOULD BE AVAILABLE TO WORKERS ONLY IN PRIMARY INDUSTRIES HURT BY THE TRADE PACT NOT THOSE IN SECONDARY OR SUPPLY INDUSTRIES TEAMSTERS PRESIDENT RON CAREY SCOFFED AT THE PROPOSAL IN TODAY'S ECONOMY THE PROMISE OF RETRAINING' IS A CRUEL HOAX MR CAREY SAID RETRAINING FOR WHAT RETRAINING FOR THE UNEMPLOYMENT LINE OR FOR A MINIMUM WAGE JOB GREG HITT CONTRIBUTED TO THIS ARTICLE A MAXIMUM OF 22500 US WORKERS WILL DIRECTLY LOSE JOBS AS A RESULT OF THE NORTH AMERICAN FREE TRADE AGREEMENT THE LABOR DEPARTMENT SAID WITH ABOUT HALF OF THOSE EXPECTED TO USE FEDERAL JOBTRAINING SERVICES THE AGENCY CLARIFIED COMMENTS MADE BY LABOR SECRETARY ROBERT REICH AN ARTICLE THURSDAY INCORRECTLY REPORTED THAT NO MORE THAN 11250 WORKERS WOULD LOSE THEIR JOBS BECAUSE OF NAFTA 9310210078 931021 BUSINESS BRIEF AMERITECH CORP THIRDQUARTER NET ROSE 29 BOOSTED BY 62 MILLION GAIN AMERITECH CORP'S NET INCOME CLIMBED 29 IN THE THIRD QUARTER HELPED BY STRONG CELLULAR CUSTOMER GROWTH AS WELL AS A ONETIME AFTERTAX GAIN FROM THE SALE OF SHARES IN TELECOM CORP OF NEW ZEALAND THE CHICAGOBASED BABY BELL REPORTED NET OF 425 MILLION OR 156 A SHARE COMPARED WITH 3305 MILLION OR 123 A SHARE A YEAR EARLIER EXCLUDING THE GAIN OF 62 MILLION OR 23 CENTS A SHARE FROM THE SALE OF 109 MILLION TELECOM COMMON SHARES EARNINGS ROSE 99 AMERITECH STILL OWNS 249 OF TELECOM OPERATING PROFIT GREW 38 TO 6204 MILLION WHILE REVENUE ROSE 47 TO 29 BILLION THE COMPANY'S CELLULAR CUSTOMER BASE EXPANDED 45 TO 755000 NETWORKACCESS LINES ROSE 31 IN LATE NEW YORK STOCK EXCHANGE TRADING AMERITECH SHARES WERE DOWN 50 CENTS TO 85875 9310210077 931021 QVC GIVES PARAMOUNT DATA ON ITS BID PREPARES STEPS TO FORCE TAKEOVER TALKS BY JOHNNIE L ROBERTS AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL QVC NETWORK INC DELIVERED A PACKAGE OF INFORMATION TO PARAMOUNT COMMUNICATIONS INC ABOUT ITS 95 BILLION BID FOR PARAMOUNT AND PREPARED A SERIES OF POSSIBLE MOVES AIMED AT PRESSURING THE ENTERTAINMENT AND PUBLISHING GIANT TO BEGIN TALKS ABOUT AN ACQUISITION INCLUDED IN THE MATERIAL SUBMITTED BY THE HOMESHOPPING CONCERN IS A PROPOSED ACQUISITION AGREEMENT NEARLY IDENTICAL TO ONE THAT PARAMOUNT SIGNED TO ACCEPT A 76 BILLION BID FROM VIACOM INC BUT UNLIKE VIACOM'S AGREEMENT WITH PARAMOUNT THE PROPOSED QVC AGREEMENT WOULDN'T REQUIRE PARAMOUNT TO PAY QVC A 100 MILLION BREAKUP FEE IF THE DEAL ISN'T COMPLETED NOR DOES IT INCLUDE A SOCALLED LOCKUP AGREEMENT IN WHICH PARAMOUNT WOULD GIVE QVC AN OPTION TO ACQUIRE A BLOCK OF PARAMOUNT SHARES BOTH OF THESE PROVISIONS ARE INCLUDED IN THE VIACOMPARAMOUNT AGREEMENT TO MAKE A COMPETING BID MORE DIFFICULT ALSO YESTERDAY QVC LED BY CHIEF EXECUTIVE OFFICER BARRY DILLER HELD ITS FIRST BOARD MEETING SINCE LAUNCHING ITS UNSOLICITED BID A MONTH AGO AND MAPPED POSSIBLE FOLLOWUP ACTIONS TO TRY TO GAIN A LEVEL PLAYING FIELD AGAINST VIACOM WHOSE OPERATIONS INCLUDE CABLE CHANNELS AND CABLE SYSTEMS PEOPLE FAMLIAR WITH QVC'S PLANS INDICATED THAT THE MOVES COULD INCLUDE LITIGATION AGAINST PARAMOUNT AND VIACOM AND A CASH TENDER OFFER FOR SOME OF PARAMOUNT'S STOCK FOLLOWED BY PAYMENT OF SECURITIES FOR THE REMAINDER OF THE SHARES QVC'S CURRENT 8045ASHARE OFFER INCLUDES 30 IN CASH VIACOM'S 6419ASHARE OFFER INCLUDES 910 IN CASH A PARAMOUNT SPOKESMAN ACKNOWLEDGED THAT QVC YESTERDAY PROVIDED THE INFORMATION THAT HE SAID WAS REQUESTED MORE THAN A WEEK AGO IT IS UNREASONABLE TO EXPECT A PARAMOUNT RESPONSE MOMENTS AFTER WE RECEIVED THE MATERIAL EVEN IF WE WERE SPEED READERS THE SPOKESMAN SAID WE WILL PROCEED TO REVIEW THE QVC MATERIAL IN A THOUGHTFUL ORDERLY AND RESPONSIBLE WAY SOME STOCK TRADERS HAVE EXPRESSED CONCERN ABOUT QVC'S DELAY IN PROVIDING THE DOCUMENTS AS IT CONDUCTED TALKS LAST WEEK WITH POSSIBLE INVESTORS TO STRENGTHEN ITS BID THEY SAID THE INACTION GAVE VIACOM A TIME ADVANTAGE IN OBTAINING GOVERNMENT APPROVALS NEEDED TO ACQUIRE PARAMOUNT STOCK THE TRADERS SAID THAT IF VIACOM IS ABLE TO BUY PARAMOUNT STOCK SOONER THAN QVC IT COULD EVENTUALLY LAUNCH ITS OWN CASH BID FOR A MINORITY OF PARAMOUNT SHARES THAT COULD BE COMPLETED SOONER THAN QVC'S EDWARD HATCH AN ANALYST AT UBS SECURITIES INC WHO MET ON MONDAY WITH VIACOM MANAGEMENT LED BY CHAIRMAN SUMNER REDSTONE SAID IN OUR OPINION MR REDSTONE IS PREPARED TO RAISE HIS BID FOR PCI BUT HAS NO NEED AT THIS TIME HE SAID GOVERNMENT APPROVALS COULD COME BY LATE NOVEMBER AT ITS FIRST MEETING FOLLOWING THE QVC BID PARAMOUNT'S BOARD ON SEPT 27 ASKED QVC FOR PROOF OF FINANCING BEFORE CONSIDERING THE OFFER IN ACCORDANCE WITH THE VIACOM CONTRACT AT ITS NEXT MEETING OCT 11 THE BOARD SAID IT WOULD HOLD INFORMATIONAL TALKS WITH QVC ABOUT THE FINANCING REGULATORY APPROVALS AND VALUE OF QVC'S CASHANDSTOCK OFFER SINCE THEN QVC HAS SECURED AGREEMENTS FROM TWO CABLETV SYSTEM OPERATORS THE NEWHOUSE FAMILY'S ADVANCE PUBLICATIONS INC AND COX ENTERPRISES INC TO PUMP 500 MILION APIECE INTO QVC IF IT SUCCEEDS IN ACQUIRING PARAMOUNT PARAMOUNT IS FOLLOWING WITH QVC A VERY SLOW AND DISDAINFUL TRACK COMPLAINED ONE PERSON IN THE QVC CAMP TODAY WE TOLD THEM YOU MUST MEET WITH US TO START A DIALOG ACCORDING TO THIS PERSON QVC OFFICIALS HAVE ASKED TO MEET WITH PARAMOUNT'S BOARD INVESTMENT BANKERS AND EXECUTIVES SO FAR PEOPLE INVOLVED IN THE DEVELOPMENTS SAID MR DILLER AND PARAMOUNT CHAIRMAN MARTIN DAVIS HAVE SPOKEN ONLY TWICE FOR A MINUTE OR LESS BY PHONE LAWYERS FOR BOTH SIDES HAVE ALSO EXCHANGED A FEW BRIEF CALLS AS HAVE INVESTMENT ADVISERS ON THE OTHER HAND ONE PERSON CLOSE TO PARAMOUNT CALLED IT DISINGENUOUS OF QVC TO ACCUSE PARAMOUNT OF FOOTDRAGGING WHEN IT TOOK QVC NINE DAYS TO PRODUCE THE MATERIAL REQUESTED BY PARAMOUNT LARRY HAVERTY A MONEY MANAGER AT STATE STREET RESEARCH WHICH OWNS BOTH PARAMOUNT AND VIACOM STOCK SAID AFTER A MEETING WITH MR REDSTONE ON TUESDAY THAT VIACOM'S STRATEGY IS GOING TO BE TO WEAR DOWN THE OPPOSITION WITH QUESTIONS ABOUT REGULATORY PROBLEMS LACK OF FIRM FINANCING I THINK THIS THING IS GOING TO MOVE AT A GLACIAL PACE 9310210076 931021 BUSINESS BRIEF MATRAHACHETTE SA FIRSTHALF NET SURGED 99 LAGARDERE MERGER IS STUDIED MATRAHACHETTE SA THE FRENCH INDUSTRIAL AND MEDIA GROUP AND ITS PARENT COMPANY LAGARDERE GROUPE SA BOTH ANNOUNCED STRONG INCREASES IN PROFIT FOR THE FIRST HALF AND RECONFIRMED THAT THEY ARE STUDYING WAYS TO MERGE THE COMPANIES SAID THEY HOPE THE MERGER STUDY WOULD YIELD RESULTS IN THE NEAR FUTURE MATRAHACHETTE'S NET GROUP PROFIT GREW 99 TO 302 MILLION FRANCS 52 MILLION FROM 152 MILLION FRANCS WHILE LAGARDERE'S JUMPED TO 85 MILLION FRANCS FROM 10 MILLION FRANCS MATRAHACHETTE WAS FORMED FROM A MERGER OF MATRA SA AND HACHETTE SA IN JANUARY LAGARDERE GROUPE WHICH WAS FORMED PRIOR TO THE MERGER HAS A MAJORITY OF VOTING RIGHTS IN MATRAHACHETTE EVEN THOUGH IT OWNS A MINORITY STAKE 9310210075 931021 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 2 15/16 HIGH 2 7/8 LOW 2 7/8 BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 89 DAYS 318 90 TO 179 DAYS 319 180 TO 239 DAYS 325 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 313 30 DAYS 314 60 DAYS 324 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 259 TWO MONTHS 267 THREE MONTHS 274 SIX MONTHS 286 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 320 THREE MONTHS 322 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 306 60 DAYS 316 90 DAYS 316 120 DAYS 316 150 DAYS 316 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EUR 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 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 3/8 THREE MONTHS 3 3/8 SIX MONTHS 3 1/2 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 656 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 181993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 306 13 WEEKS 314 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 656 60 DAYS 665 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 656 60 DAYS 666 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 480 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 9310210074 931021 BUSINESS BRIEF CORESTATES FINANCIAL CORP THIRDQUARTER NET ROSE 26 AS INTEREST INCOME IMPROVED CORESTATES FINANCIAL CORP REPORTED A 26 INCREASE IN THIRDQUARTER NET INCOME DUE TO GROWTH IN NET INTEREST INCOME AND REVENUE FROM FEEBASED SERVICES THE PHILADELPHIA BANKING COMPANY SAID NET FOR THE PERIOD WAS 86 MILLION OR 73 CENTS A SHARE COMPARED WITH 679 MILLION OR 59 CENTS A SHARE IN THE YEAREARLIER PERIOD THE PERSHARE FIGURES REFLECT A 2FOR1 STOCK SPLIT OCT 15 THE COMPANY SAID RETURN ON AVERAGE ASSETS WAS 15 AND RETURN ON EQUITY WAS 186 THE COMPANY SAID IT INCREASED ITS AVERAGE NUMBER OF LOANS OUTSTANDING WHICH HAS RESULTED IN NET INTEREST INCOME GROWTH MEANWHILE NONPERFORMING ASSETS DECLINED FOR THE FIFTH STRAIGHT QUARTER TO 2954 MILLION OR 13 OF TOTAL ASSETS AS OF SEPT 30 THE PROVISION FOR LOAN LOSSES WAS 25 MILLION FOR THE QUARTER COMPARED WITH THE YEARAGO 27 MILLION CORESTATES HAS 228 BILLION IN ASSETS 9310210073 931021 BUSINESS BRIEF BRINKER INTERNATIONAL INC FIRSTQUARTER NET ROSE 33 ON 27 INCREASE IN REVENUE BRINKER INTERNATIONAL INC SAID STRONG SALES AT NEW RESTAURANTS BOOSTED NET INCOME 33 IN THE FIRST QUARTER ENDED SEPT 29 TO 144 MILLION OR 30 CENTS A SHARE FROM 108 MILLION OR 23 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 27 TO 1924 MILLION FROM 1512 MILLION THE RESTAURANT CONCERN SAID SALES AT RESTAURANTS OPEN A YEAR OR MORE ROSE 24 THE DALLAS COMPANY SAID IT OPENED 17 OF ITS FLAGSHIP CHILI'S RESTAURANTS IN THE QUARTER INCLUDING ONE FRANCHISED UNIT RAISING THE NUMBER OF CHILI'S UNITS TO 334 IT ALSO OPENED FOUR GRADY'S RESTAURANTS FOUR ROMANO'S RESTAURANTS AND ONE SPAGGEDIES RESTAURANT RAISING THE TOTAL FOR THOSE UNITS TO 58 IT EXPECTS TO OPEN 10 COMPANYOPERATED RESTAURANTS INCLUDING SEVEN CHILI'S UNITS IN THE CURRENT QUARTER ALONG WITH FOUR TO SEVEN CHILI'S FRANCHISE UNITS 9310210072 931021 REVIEW & OUTLOOK EDITORIAL RON BROWN AND RAY DONOVAN WITH RON BROWN'S ETHICS FESTERING OFF IN A CORNER OF THE CLINTON PRESIDENCY WE THOUGHT IT MIGHT BE USEFUL TO RESURRECT THE CASE OF FORMER LABOR SECRETARY RAYMOND DONOVAN BY WAY OF REVIEWING THE EVOLVING POLITICAL MORES OF THE NATION THE COMMERCE SECRETARY REPORTEDLY THINKS HE'S BEEN SAVAGED IN THE WASHINGTON PRESS OVER ALLEGATIONS OF A 700000 PAYMENT TO HELP LIFT THE TRADE EMBARGO ON VIETNAM HE CERTAINLY HAS A POINT THAT THERE IS NO FIRM SUBSTANTIATION OF THE ALLEGATIONS WHICH SURFACED IN AUGUST WITH REPORTS IN THE MIAMI HERALD AND US NEWS & WORLD REPORT THE REPORTS RELY ON THE ACCOUNTS OF WHAT ONE VIETNAMESE BUSINESSMAN LY THANH BINH SAYS HE WAS TOLD BY HIS FORMER PARTNER NGUYEN VAN HAO IT'S QUITE PLAUSIBLE AS OUR ALBERT HUNT SUGGESTED LAST WEEK THAT MR HAO WAS USING HIS CONTACTS WITH SECRETARY BROWN TO EXTRACT MONEY FROM THE VIETNAMESE GOVERNMENT STILL THERE ARE CERTAIN PROBLEMS TO BEGIN WITH MR BROWN WAS A PARTNER IN PATTON BOGGS & BLOW THE CAPITAL'S CHAMPION INFLUENCEPEDDLING LAW FIRM AND HIMSELF HAD CLIENTS SUCH AS HAITIAN DICTATOR BABY DOC DUVALIER AND HE INITIALLY HAD HIS SPOKESMAN LIE ABOUT THE VIETNAMESE EPISODE DENYING MEETINGS WITH MR HAO THAT HE HAS SINCE HAD TO ACKNOWLEDGE THEN THERE IS THE VENUE OF THESE MEETINGS ONE OF WHICH TOOK PLACE IN A 360000 TOWNHOUSE OWNED BY MR BROWN AND HIS SON BUT OCCUPIED BY LILLIAN MADSEN BOTH A FRIEND OF MR BROWN'S AND AN ASSOCIATE OF THE LOBBYING VIETNAMESE BUSINESSMEN MR BROWN'S INTEREST IN THE TOWNHOUSE DID NOT SHOW UP AS AN ASSET IN HIS DISCLOSURE STATEMENT PERHAPS OWING TO A CONVENIENT ARRANGEMENT OF CLOSING DATES OR PERHAPS BECAUSE THE PROPERTY PRODUCES NO INCOME A SPOKESMAN SAYS MR BROWN WILL TIDY THIS MATTER ON HIS NEXT DISCLOSURE FORM ALL OF THIS HAS BEEN PUT ON THE PUBLIC RECORD IN VARIOUS PRESS ACCOUNTS THE FBI IS NOW CONDUCTING AN INVESTIGATION FOR THE JUSTICE DEPARTMENT AND A FEDERAL GRAND JURY IN MIAMI HAS BEEN EMPANELED REPUBLICANS HAVE CALLED ON ATTORNEY GENERAL RENO TO USE HER POWERS TO APPOINT A SPECIAL PROSECUTOR THE INDEPENDENT COUNSEL LAW HAVING EXPIRED EVERYTHING HAS BEEN REPORTED BY THE PRESS STILL MR BROWN'S CASE HAS RECEIVED AN ADMIRABLE FASTIDIOUSNESS EVERYONE IS GIVING HIM A BENEFIT OF THE DOUBT IN PARTICULAR IT'S BEEN CORDONED OFF AS AN UNFORTUNATE AND PRESUMABLY ATYPICAL BLOT ON THE CHARACTER OF THE CLINTON PRESIDENCY NOT AS EVIDENCE OF A GENERALIZED SLEAZE THE RAY DONOVAN CASE BY CONTRAST WAS A CIRCUS WATCHING THE BROWN EPISODE WE CAN'T HELP BUT WONDER WHAT WOULD HAVE HAPPENED IF MR DONOVAN HAD PRESENTED SIMILAR CIRCUMSTANCES LIKE MR BROWN MR DONOVAN WAS THE FIRST CABINET OFFICIAL IN A NEW ADMINISTRATION TO RUN THE ETHICAL GAUNTLET BUT WE NOW KNOW THAT MR DONOVAN WAS INNOCENT NOT PRESUMED INNOCENT AS OF COURSE IS MR BROWN BUT SHOWN TO BE INNOCENT BY THREE SPECIAL PROSECUTORS AND A COURT VERDICT WHICH KEPT THE CHARGES AFLOAT FOR NEARLY EIGHT YEARS SHORTLY AFTER MR REAGAN APPOINTED THE CONSERVATIVE NEW JERSEY CONSTRUCTION COMPANY EXECUTIVE TO BE HIS LABOR SECRETARY ALLEGATIONS SURFACED ABOUT MAFIA ASSOCIATIONS A JANUARY 1981 FBI REPORT CLEARED MR DONOVAN BUT THE NEWS STORIES PERSISTED AND IN DECEMBER MR DONOVAN HIMSELF REQUESTED A SPECIAL PROSECUTOR A COURT APPOINTED LEON SILVERMAN ON DECEMBER 29 1981 AFTER TWO SEPARATE INVESTIGATIONS IN 1982 INDEPENDENT COUNSEL SILVERMAN REPORTED INSUFFICIENT CREDIBLE EVIDENCE TO PROSECUTE IN 1984 DEMOCRATIC BRONX PROSECUTOR MARIO MEROLA GOT MR DONOVAN INDICTED ON CHARGES OF DEFRAUDING A MINORITY SETASIDE PROGRAM AND WITH THAT PENDING MR DONOVAN WAS FORCED TO RESIGN IN MAY 1987 A JURY ACQUITTED HIM IN OCTOBER THAT YEAR A FEDERAL GRAND JURY TOLD SPECIAL PROSECUTOR LEON SILVERMAN BACK FOR A THIRD RUN THAT IT HAD VOTED AGAINST AN INDICTMENT OF MR DONOVAN BY THEN IT HARDLY MATTERED MR DONOVAN ASKED WHICH OFFICE DO I GO TO TO GET MY REPUTATION BACK THE DONOVAN CASE RECALL BECAME PART OF SOMETHING KNOWN AS THE SLEAZE FACTOR AN INCANTATION THAT HAD A PURPOSE IT WAS INTENDED TO CONVINCE ITS AUDIENCE THAT POLITICAL CORRUPTION WAS ENDEMIC TO THE CONSERVATIVE REPUBLICANISM THAT RONALD REAGAN BROUGHT TO WASHINGTON THOSE WHO FELT THREATENED COULDN'T BEAT UP ON A GENIAL PRESIDENT SO THEY BEAT UP ON RAY DONOVAN ED MEESE RICHARD ALLEN AND OTHER FOLKS WHOSE TRANSGRESSIONS WERE NO MORE SUSPICIOUSLOOKING THAN RON BROWN'S DON'T MISTAKE US WE'RE STILL AGAINST INDEPENDENT COUNSEL LAWS TARGETED ON THE EXECUTIVE JUST AS WE'RE FOR EXECUTIVE PRIMACY IN FOREIGN POLICY AS PRINCIPLES TRANSCENDING ANY PRESENT INCUMBENT WE DON'T WANT MR BROWN HOUNDED FROM OFFICE AND THEN FOUND TO BE INNOCENT STILL SOMETHING HAS CHANGED PERHAPS FROM FLAMING CIRCUSES SUCH AS THE DONOVAN ONE WASHINGTON HAS LEARNED HOW TO HANDLE ETHICS ISSUES WITH A SENSE OF PROPORTION AND JUDGMENT ANOTHER VIEW WOULD BE THAT THE TOWN CARRIES ITS TORCHES WITH A DOUBLE STANDARD 9310210071 931021 POLITICS & POLICY CLINTON ORDERS AGENCIES TO BUY RECYCLED PAPER BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION ISSUED AN EXECUTIVE ORDER REQUIRING THAT PAPER PURCHASED BY FEDERAL AGENCIES MEET STRICT RECYCLING STANDARDS BUT AT THE URGING OF SENATE MAJORITY LEADER GEORGE MITCHELL IT GRANTED WHAT AMOUNTS TO AN EXEMPTION FOR PAPER FROM A PULP MILL IN SEN MITCHELL'S HOME STATE OF MAINE THE LOOPHOLE WHICH WILL BENEFIT LINCOLN PULP & PAPER CO BANGOR MAINE HAD BEEN FOUGHT BY VICE PRESIDENT AL GORE AND ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR CAROL BROWNER BUT SEN MITCHELL WHOSE ASSISTANCE WILL BE NEEDED BY THE WHITE HOUSE ON LEGISLATIVE ISSUES RANGING FROM THE NORTH AMERICAN FREE TRADE AGREEMENT TO HEALTHCARE REFORM ULTIMATELY PREVAILED ENVIRONMENTALISTS EXPRESSED SOME DISMAY AT THE LOOPHOLE BUT GENERALLY LAVISHED PRAISE ON THE PRESIDENT'S ACTION THE EXECUTIVE ORDER WILL MEAN LESS INCINERATORS LESS LANDFILLS MORE TREES AND WILL LEAD TO AN INVESTMENT OF BILLIONS OF DOLLARS IN THE RECYCLING INDUSTRY SAID ALAN HERSHKOWITZ A SENIOR SCIENTIST WITH THE NATURAL RESOURCES DEFENSE COUNCIL UNDER THE EXECUTIVE ORDER WHICH VICE PRESIDENT GORE ANNOUNCED YESTERDAY AS HE CAMPAIGNED FOR NEW YORK MAYOR DAVID DINKINS VIRTUALLY ALL PRINTING AND WRITING PAPER PURCHASED BY THE FEDERAL GOVERNMENT MUST CONTAIN AT LEAST 20 POSTCONSUMER MATERIAL SUCH AS DISCARDED NEWSPAPERS AND MAGAZINES BY THE END OF 1994 AND 30 BY THE END OF 1998 AN EXCEPTION WILL BE GRANTED HOWEVER FOR PAPER THAT IS MADE WITH 50 RECOVERED BYPRODUCTS FROM THE PRODUCTION OF GOODS OTHER THAN PAPER OR TEXTILES PROVIDED THAT THE WASTE WOULD OTHERWISE END UP IN A LANDFILL ACCORDING TO A SUMMARY OF THE ORDER ISSUED BY THE WHITE HOUSE THE ONLY COMPANY KNOWN TO CONFORM TO THIS DESCRIPTION IS LINCOLN PULP & PAPER CO WHICH MANUFACTURES PULP FROM RECYCLED SAWDUST AND EMPLOYS ROUGHLY 500 PEOPLE ONLY A HANDFUL OF PAPER COMPANIES RECYCLE SAWDUST INTO PULP AND ONLY LINCOLN PULP & PAPER IS KNOWN TO ACHIEVE THE 50 LEVEL JOSEPH TORRAS PRESIDENT AND OWNER OF LINCOLN PULP & PAPER SAID HIS COMPANY WAS LUCKY TO HAVE SEN MITCHELL WHO SPENT THE TIME TO GET THE UNDERSTANDING TO HANDLE THIS THING PROPERLY IN A WRITTEN STATEMENT SEN MITCHELL PRAISED THE EXECUTIVE ORDER AS AN ENVIRONMENTALLY SOUND AND ECONOMICALLY SENSIBLE POLICY THAT RECOGNIZES THE WASTEDISPOSAL NEEDS OF A RURAL STATE LIKE MAINE WHOSE ECONOMY RELIES HEAVILY ON LUMBER AS WASTE PAPER IS A SIGNIFICANT BYPRODUCT OF ECONOMIC ACTIVITY IN URBAN AREAS SO WASTE SAWDUST IS A SIGNIFICANT BYPRODUCT OF MAINE'S ECONOMIC ACTIVITY HE SAID 9310210069 931021 CORRECTIONS & AMPLIFICATIONS PUBCITE AN ELECTRONIC NEWS SERVICE WAS CODEVELOPED BY A MEAD CORP UNIT AND AMERICAN TELEPHONE & TELEGRAPH CO'S AT&T EASYLINK SERVICES UNIT AN ARTICLE TUESDAY INCORRECTLY SAID THE SERVICE WAS DEVELOPED SOLELY BY MEAD DATA CENTRAL ALSO THE COST FOR SUBSCRIBING TO PUBCITE IS 26 A YEAR FOR EACH PUBLICATION'S TABLE OF CONTENTS NOT 29 A MONTH FOR EACH PUBLICATION'S TABLE OF CONTENTS AS THE ARTICLE STATED GERALD W HADDOCK WHO WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WOLVERINE EXPLORATION CO WILL REMAIN A PARTNER AT THE LAW FIRM JACKSON & WALKER AN ITEM TUESDAY INCORRECTLY INDICATED HE LEFT THE FIRM TO ASSUME THE NEW POSTS COLORADO MEDTECH INC IS AN INDEPENDENT PUBLICLY TRADED COMPANY A WHO'S NEWS ITEM TUESDAY INCORRECTLY STATED THAT THE COMPANY HAD BEEN ACQUIRED BY HEALTHWATCH INC TIMKEN CO AND EASTMAN KODAK CO HAVE NOT BEEN ACCUSED BY INSTITUTIONAL SHAREHOLDERS OF PARTICIPATION IN THE ARAB BOYCOTT OF ISRAEL A CHART WITH A MARKETPLACE ARTICLE OCT 6 INCORRECTLY INDICATED THE BOYCOTT ISSUE WAS AMONG THE REASONS THE INSTITUTIONS WERE BRINGING PRESSURE AGAINST THE TWO COMPANIES 9310210068 931021 INTERNATIONAL BRIEF HOECHST AG PHARMACEUTICAL SALES RISE BY 06 ON INCREASE ABROAD HOECHST AG REPORTED THAT EIGHTMONTH GROUP PHARMACEUTICAL SALES INCREASED 06 FROM A YEAR EARLIER TO 607 BILLION MARKS 370 BILLION THE GERMAN CHEMICAL COMPANY SAID THE HIGHER SALES FIGURE REFLECTS A RECOVERY IN FOREIGN SALES WHICH IT NOTED WERE 26 HIGHER THAN IN THE PREVIOUS YEAR IN GERMANY SALES DROPPED 69 IN THE EIGHTMONTH PERIOD THE GROUP SAID THE FIGURES WERE RELEASED DURING A NEWS CONFERENCE DISCUSSING THE FUTURE OF THE CONCERN'S PHARMACEUTICAL BUSINESS THE COMPANY ALSO SAID IT WILL CUT 300 PHARMACEUTICAL POSITIONS IN GERMANY THIS YEAR INCLUDING SOME THROUGH EARLY RETIREMENT THE PHARMACEUTICALS DIVISION HAS 9561 WORKERS IN GERMANY AND 32539 WORLDWIDE 9310210067 931021 FEDERAL PROBE FINDS CALIFORNIA FIRMS ALLEGEDLY TRADED BOGUS AIRLINE PARTS BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES FEDERAL INVESTIGATORS HAVE UNCOVERED A SOUTHERN CALIFORNIABASED OPERATION THAT SUPPLIED ALLEGEDLY SUBSTANDARD OR BOGUS ENGINE PARTS FOR COMMUTER AIRLINES CIVILIAN HELICOPTERS AND US MILITARY CARGO JETS SINCE 1988 THE CRIMINAL INQUIRY DISCLOSED IN DOCUMENTS FILED IN FEDERAL COURT HERE YESTERDAY IS PART OF A BROADER FEDERAL CRACKDOWN ON ILLICIT AND UNSAFE AIRCRAFT PARTS BUT THE LATEST MOVE INDICATES AGENTS FROM THE FEDERAL BUREAU OF INVESTIGATION THE DEPARTMENT OF TRANSPORTATION AND THE PENTAGON ARE SHIFTING THEIR FOCUS TO LARGER PARTSDISTRIBUTION CONCERNS RATHER THAN SMALL REPAIR SHOPS OR A MIDDLEMAN SUSPECTED OF PASSING ON ILLEGAL PARTS DIXON AIRCRAFT COMPONENTS INC A DEFUNCT ENGINEOVERHAUL AND REPAIR FACILITY AND ITS PRESIDENT RUDOLF DIXON WERE CHARGED IN A 50COUNT INDICTMENT WITH DEFRAUDING THE AIR FORCE AND THE FEDERAL AVIATION ADMINISTRATION BY PROVIDING SUBSTANDARD PARTS FOR USE IN TURBOPROP PLANES CARGO CRAFT AND VARIOUS CIVILIAN HELICOPTER MODELS IN SOME CASES THE COMPANY ALLEGEDLY TOOK CONDEMNED OR SCRAP PARTS MODIFIED THEM AND THEN SOLD THEM TO COMMERCIAL CUSTOMERS AS NEW ACCORDING TO THE INDICTMENT THE INDICTMENT INDICATES THAT AT LEAST ONE ILLEGALLY OVERHAULED PART WAS SOLD TO PAN AM EXPRESS IN APRIL 1990 AND INVESTIGATORS SAID THEY ALSO TRACED SOME OF THE SUSPECT PARTS TO HAWAIIAN AIRLINES THE INDICTMENT ALLEGES THAT THE ILLEGAL PARTS SOME OF WHICH THE CONSPIRATORS ARE ACCUSED OF MODIFYING CONTRARY TO SPECIFIC WARNINGS FROM THE MANUFACTURER INCLUDED ENGINEEXHAUST DEVICES FOR HELICOPTERS AND COMBUSTION LINERS USED ON THE ENGINES OF C5 AIR FORCE CARGO PLANES AND ON POPULAR TURBOPROP ENGINES BUILT BY UNITED TECHNOLOGIES CORP'S PRATT & WHITNEY UNIT IN ADDITION LAWENFORCEMENT OFFICIALS SAID THERE IS EVIDENCE THAT SOME PARTS WERE INTENDED FOR USE IN EXECUTIVE LEARJETS POWERED BY GENERAL ELECTRIC CO ENGINES MR DIXON WHOSE FIRM WAS BASED IN OXNARD CALIF COULDN'T BE REACHED FOR COMMENT THE NEXT PHASE OF THE EXPANDING INVESTIGATION ACCORDING TO LAWENFORCEMENT OFFICIALS WILL CONCENTRATE ON PRIVATELY HELD ONTARIO AIR PARTS INC A LARGE PARTSDISTRIBUTOR BASED IN FONTANA CALIF AND SIMILAR FIRMS THAT DEALT WITH MR DIXON THE INDICTMENT INDICATES THAT MR DIXON PURCHASED SOME OF HIS PARTS AT ROCKBOTTOM PRICES FROM ONTARIO AND THEN RESOLD THEM AT PREMIUM PRICES INVESTIGATORS BELIEVE THAT ONTARIO AIR PARTS WHICH OPERATES A LARGE WAREHOUSE DEALT EXTENSIVELY WITH MR DIXON AND MAY SELL PARTS DIRECTLY TO MAJOR US AIRLINES OFFICIALS AT THE COMPANY COULDN'T BE REACHED FOR COMMENT LATE YESTERDAY 9310210066 931021 BUSINESS BRIEF MIDAMERICAN WASTE SYSTEMS INC NET LOSS FOR THIRD QUARTER AMOUNTS TO 335 MILLION MIDAMERICAN WASTE SYSTEMS INC TOOK A 378 MILLION OR 155 A SHARE ONETIME CHARGE IN ITS THIRD QUARTER FOR RESTRUCTURING ITS CORE SOLIDWASTE HAULING OPERATIONS THE CHARGE CONTRIBUTED TO A NET LOSS OF 335 MILLION OR 137 A SHARE FOR THE QUARTER COMPARED WITH NET INCOME OF 49 MILLION OR 21 CENTS A SHARE THE YEAR EARLIER THE COMPANY BASED IN CANAL WINCHESTER OHIO SAID IT EXPECTS THE RESTRUCTURING TO RESULT IN ANNUAL SAVINGS OF 12 CENTS A SHARE BEGINNING WITH THE CURRENT QUARTER YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MIDAMERICAN'S STOCK CLOSED AT 825 OFF 25 CENTS THE COMPANY SAID THE CHARGE INCLUDES A 158 MILLION ADJUSTMENT FOR THE EXPECTED SALE OF ITS SLUDGEPROCESSING UNIT IN PHILLIPSBURG NJ 21 MILLION FOR SEVERANCE TO BETWEEN 50 AND 75 EMPLOYEES OR ABOUT 8 OF ITS WORK FORCE MOST OF WHOM HAVE ALREADY BEEN LAID OFF AND 199 MILLION FOR WRITEDOWNS AND CONSOLIDATIONS AT SEVERAL TRANSFERANDRECYCLING OPERATIONS REVENUE IN THE PERIOD FELL 3 TO 41 MILLION 9310210065 931021 BUSINESS BRIEF HERSHEY FOODS CORP CANDY AND PASTA FIRM'S NET ROSE 11 IN THIRD QUARTER HERSHEY FOODS CORP REPORTED NET INCOME ROSE 11 FOR ITS FISCAL THIRD QUARTER PACED BY STRONG VOLUME GAINS IN ITS HERSHEY CHOCOLATE USA DIVISION AND ITS PASTA GROUP IN THE QUARTER ENDED OCT 3 THE HERSHEY PA CANDY AND PASTA COMPANY REPORTED NET ROSE TO 74 MILLION OR 82 CENTS A SHARE FROM 669 MILLION OR 74 CENTS A SHARE A YEAR EARLIER PERSHARE EARNINGS WERE IN LINE WITH ANALYSTS' ESTIMATES SALES FOR THE PERIOD ROSE 13 TO 9357 MILLION LATEST QUARTER AND NINEMONTH RESULTS WERE REDUCED BY FOUR CENTS A SHARE BECAUSE OF THE RETROACTIVE EFFECT OF NEW FEDERAL TAX LEGISLATION BOTH HERSEY CHOCOLATE USA AND THE PASTA GROUP INCREASED MARKET SHARE IN THE QUARTER SEPARATELY MICHAEL F PASQUALE WAS NAMED PRESIDENT OF HERSHEY CHOCOLATE USA HE IS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF HERSHEY FOODS 9310210064 931021 BUSINESS BRIEF US HOME CORP THIRDQUARTER NET JUMPED 45 MILLION GAIN IS INCLUDED US HOME CORP HOUSTON SAID ITS NET INCOME JUMPED TO 534 MILLION OR 455 A SHARE FROM 64 MILLION OR 57 CENTS A SHARE IN THE THIRD QUARTER THAT LEAP INCLUDES A GAIN OF 45 MILLION OR 388 A SHARE FROM RECOGNIZING THE DEFERRED TAX BENEFITS OF NET OPERATING LOSS CARRYFORWARDS THAT GAIN ASIDE THE HOMEBUILDER SAID ITS PRETAX OPERATING EARNINGS CLIMBED 49 TO 138 MILLION FROM 93 MILLION AS NEW ORDERS FOR HOME CONSTRUCTION SURGED 32 TO 1677 UNITS FROM 1270 NEW ORDERS A YEAR EARLIER THE BACKLOG OF ORDERS ROSE 33 TO 3266 UNITS FROM 2462 UNITS REVENUE FOR THE QUARTER ROSE 25 TO 2275 MILLION FROM 1824 MILLION ISAAC HEIMBINDER PRESIDENT AND CHIEF OPERATING OFFICER SAID THE COMPANY DECIDED TO RECOGNIZE THE CARRYFORWARDS AT THIS TIME BECAUSE IT EXPECTS TO POST HIGH ENOUGH FUTURE EARNINGS TO USE ESSENTIALLY ALL THE TAX BENEFIT 9310210063 931021 BUSINESS BRIEF TELLURIDE CO FINES AND COST OF SETTLEMENT WITH EPA TOTAL 2 MILLION TELLURIDE CO A CLOSELY HELD DENVER SKI RESORT OPERATOR SAID IT REACHED AN AGREEMENT WITH THE ENVIRONMENTAL PROTECTION AGENCY OVER VIOLATIONS OF WETLANDS REGULATIONS THAT WILL COST THE SKI COMPANY ABOUT 2 MILLION IN FINES AND MITIGATION COSTS THE PROPOSED SETTLEMENT WAS FILED IN FEDERAL DISTRICT COURT IN DENVER AND WILL REQUIRE A JUDGE'S APPROVAL TELLURIDE WAS CITED FOR DISTURBING WETLANDS AT ITS MOUNTAIN VILLAGE COMPLEX AT THE SKI AREA WITHOUT GETTING NECESSARY GOVERNMENT PERMITS THE COMPANY SAYS IT WAS NOT AWARE THAT FEDERAL LAWS CONCERNING WETLANDS CHANGED IN 1984 WHEN IT WAS IN THE MIDDLE OF DEVELOPING THE COMMERCIAL AND RESIDENTIAL VILLAGE EARLIER LAWS DIDN'T REQUIRE PERMITS FOR WORK THAT DISTURBED WETLANDS IN CERTAIN HEADWATERS AREAS THE GOVERNMENT AND SKI COMPANY HAVE NEVER AGREED ON HOW MANY ACRES OF WETLANDS WERE DISTURBED BUT THE SKI RESORT WILL RESTORE 15 ACRES AT THE SKI AREA AND CREATE 27 NEW ACRES OF WETLANDS ELSEWHERE 9310210062 931021 BUSINESS BRIEF CLOROX CO HOMEPRODUCTS FIRM'S NET ROSE 76 IN FISCAL 1ST PERIOD PUSHED BY ROBUST SALES AND THE SHEDDING OF ITS FROZEN FOOD AND BOTTLED WATER BUSINESSES CLOROX CO POSTED FISCAL FIRSTQUARTER NET INCOME OF 784 MILLION OR 144 A SHARE UP 76 THAT COMPARES WITH NET INCOME OF 446 MILLION OR 82 CENTS A SHARE A YEAR EARLIER THE OAKLAND CALIF HOUSEHOLDPRODUCTS CONCERN SAID NET INCOME FROM CONTINUING OPERATIONS CLIMBED 4 TO 463 MILLION OR 85 CENTS A SHARE COMPARED WITH 444 MILLION OR 81 CENTS A SHARE A YEAR EARLIER LED BY RECORD SHIPMENTS OF ITS LIQUID BLEACH AND FORMULA 409 CLEANING SPRAY THE COMPANY SAID REVENUE ROSE 14 TO 4497 MILLION FROM 3947 MILLION THE COMPANY ATTRIBUTED PART OF THE INCREASE TO GROWING INTERNATIONAL SALES AND A STAKE THAT ROSE TO 90 IN AN ARGENTINE BUSINESS 9310210061 931021 CLINTON ESCAPES SHOWDOWN IN CONGRESS OVER HIS POWER TO DEPLOY US FORCES BY JOHN HARWOOD AND ROBERT S GREENBERGER STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON DODGED A SHOWDOWN WITH CONGRESS OVER HIS AUTHORITY AS COMMANDER IN CHIEF AS SENATE REPUBLICAN LEADER ROBERT DOLE SOFTENED HIS ATTEMPT TO RESTRICT ADMINISTRATION POLICY IN HAITI AND BOSNIA THE REPUBLICAN LEADER HAD INITIALLY SOUGHT TO BLOCK MR CLINTON FROM DEPLOYING US TROOPS IN EITHER OF THOSE TROUBLE SPOTS WITHOUT CONGRESSIONAL AUTHORIZATION INSTEAD AFTER THREE DAYS OF NEGOTIATIONS WITH THE WHITE HOUSE MR DOLE JOINED SENATE MAJORITY LEADER GEORGE MITCHELL IN OFFERING NONBINDING RESOLUTIONS REQUESTING THE PRESIDENT SEEK AUTHORIZATION IN EACH CASE THE SENATE LAST NIGHT APPROVED THE BOSNIA RESOLUTION BY A 991 MARGIN AND A SIMILAR VOTE ON THE VERSION CONCERNING HAITI IS EXPECTED THIS MORNING THE LATTER RESOLUTION SAYS THE US SHOULD REMAIN ENGAGED IN HAITI TO SUPPORT NATIONAL RECONCILIATION THERE AND ASKS THE PRESIDENT TO REPORT TO CONGRESS WITHIN 48 HOURS IF TROOPS MUST BE DEPLOYED BEFORE LAWMAKERS HAVE TIME TO ACT FOR ITS PART THE WHITE HOUSE OFFERED LAWMAKERS A GESTURE TOWARD GREATER CONGRESSIONAL INVOLVEMENT AT LEAST IN THE CASE OF BOSNIA IN LETTERS TO MR MITCHELL AND MR DOLE THE PRESIDENT SAID IT WOULD BE HELPFUL TO HAVE A STRONG EXPRESSION OF SUPPORT FROM THE US CONGRESS BEFORE AMERICAN FORCEMENT A BOSNIAN PEACE ACCORD UNDER AUSPICES OF THE NORTH ATLANTIC TREATY ORGANIZATION FOR THAT REASON I WOULD WELCOME AND ENCOURAGE CONGRESSIONAL AUTHORIZATION OF ANY MILITARY INVOLVEMENT IN BOSNIA MR CLINTON WROTE THOUGH YESTERDAY'S COMPROMISE AVERTED AN IMMEDIATE CONFRONTATION LAWMAKERS IN BOTH PARTIES ACKNOWLEDGED IT MAY BE TIME FOR THE PRESIDENT AND CONGRESS TO BEGIN A LONGERTERM ATTEMPT TO ADAPT THEIR DECSIONMAKING PROCESS TO THE DEMANDS OF THE POSTCOLD WAR WORLD MEANWHILE US AND HAITIAN OFFICIALS ARE DISCUSSING IDEAS TO BROADEN HAITI'S GOVERNMENT PERHAPS BY INCLUDING SOME OPPONENTS OF EXILED PRESIDENT JEANBERTRAND ARISTIDE IN AN EFFORT TO RESOLVE THE STALEMATE THERE A TOP CLINTON ADMINISTRATION OFFICIAL REJECTING REPORTS OF FRICTION BETWEEN THE US AND MR ARISTIDE INSISTED THAT THE US WASN'T FORCING ANY NONDEMOCRATIC ELEMENTS ON THE EXILED LEADER WE ARE FOR RECONCILIATION THE OFFICIAL SAID A TOP ADVISER TO MR ARISTIDE AGREED WITH THAT ASSESSMENT ON CAPITOL HILL YESTERDAY MR ARISTIDE REFERRING TO HAITI'S TOP MILITARY LEADERS WHO LED THE BLOODY COUP THAT OUSTED HIM TWO YEARS AGO SAID WE ARE READY TO EXPAND THE PROCESS BUT FIRST THEY HAVE TO BE REMOVED THE TOP ADVISER TO MR ARISTIDE ADDED THAT THERE HAVE BEEN DISCUSSIONS SINCE LAST JULY WHEN MR ARISTIDE AND GEN RAOUL CEDRAS THE HAITIAN MILITARY COMMANDER SIGNED AN AGREEMENT ABOUT WAYS TO MAKE THIS PROCESS WORK INCLUDING BROADENING THE BASE OF THE GOVERNMENT ONCE MR ARISTIDE IS RESTORED TO POWER AT NO POINT WAS INCLUSION OF NONDEMOCRATIC FORCES EVER CONSIDERED OR EVEN DISCUSSED THAT IS SOMETHING WE SIMPLY COULD NOT SUPPORT WHITE HOUSE PRESS SECRETARY DEE DEE MYERS SAID YESTERDAY US OFFICIALS DO WORRY PRIVATELY THOUGH THAT MR ARISTIDE IF HE IS RESTORED TO POWER WON'T BE SUFFICIENTLY FLEXIBLE TO BROADEN HIS GOVERNMENT IN A WAY THAT WOULD BEGIN TO HEAL HAITI'S POLITICAL WOUNDS YESTERDAY ACCORDING TO WIRESERVICE REPORTS ROBERT MALVAL WHO WAS CHOSEN AS PRIME MINISTER BY MR ARISTIDE WARNED THAT HE WOULD QUIT ON OCT 30 IF GEN CEDRAS AND THE POLICE CHIEF DON'T LEAVE BY THEN AS THEY HAD PROMISED TO DO US OFFICIALS SAY MR MALVAL'S RESIGNATION WOULD WRECK ANY CHANCE FOR SALVAGING THE ALREADY SHAKY PEACE ACCORD IN THE SENATE DEBATE MR DOLE ASSERTED ON THE SENATE FLOOR THAT THE COMPROMISE SOUGHT THE RIGHT BALANCE BETWEEN PRESIDENTIAL AND CONGRESSIONAL PREROGATIVES I DON'T BELIEVE WE SHOULD TIE THE PRESIDENT'S HANDS BUT I DON'T BELIEVE THE CONGRESS SHOULD SIT ON ITS HANDS THE KANSAS REPUBLICAN SAID HIS RETREAT CAME A DAY AFTER THE SENATE VOTED 6533 TO REJECT A MOVE BY SEN DON NICKLES R OKLA TO RESTRICT THE ADMINISTRATION'S ABILITY TO DISPATCH TROOPS UNDER UNITED NATIONS COMMAND DURING EXTENSIVE DEBATE SENATORS OF BOTH PARTIES CRITICIZED THE ADMINISTRATION'S HANDLING OF CRISES IN SOMALIA HAITI AND BOSNIA AND SENT WHAT ARMED SERVICES COMMITTEE CHAIRMAN SAM NUNN D GA CALLED A WARNING SIGNAL ABOUT THE NEED FOR IMPROVED CONSULTATION AND POLICY MAKING MR NUNN AND OTHERS CALLED FOR A LONGERTERM EFFORT TO SCRAP THE WAR POWERS ACT AND DRAFT A FRAMEWORK FOR THE PRESIDENT AND CONGRESS TO DECIDE UPON THE COMMITMENT OF US TROOPS TO HOSTILITIES ABROAD BUT IN THE END A BIPARTISAN MAJORITY BALKED AT RESPONDING TO IMMEDIATE CONCERNS WITH LEGISLATION THAT MIGHT UNDULY INTERFERE WITH THE PRESIDENT'S CONSTITUTIONAL AUTHORITY EVEN AS HE MOVED TO RESTRICT MR CLINTON'S MANEUVERING ROOM TO THE CHEERS OF HIS PARTY'S CONSERVATIVES MR DOLE HIMSELF EXPRESSED A WILLINGNESS TO COMPROMISE AND GIVE THE PRESIDENT THE BENEFIT OF THE DOUBT THE GOP LEADER A POTENTIAL CHALLENGER TO MR CLINTON IN 1996 CONCEDED THAT HE'D FIGHT THE AMENDMENT HE HAD PROPOSED IF HE WERE PRESIDENT SEPARATELY THE STATE DEPARTMENT CONFIRMED THAT ITS INSPECTOR GENERAL IS CONDUCTING AN EXAMINATION OF WHETHER ROBERT OAKLEY MR CLINTON'S SPECIAL ENVOY TO SOMALIA MAY HAVE VIOLATED FEDERAL LAW WHEN HE WAS A PRIVATE CONSULTANT MR OAKLEY'S ACTIVITIES AND THE DEPARTMENT'S REVIEW WERE REPORTED BY THE NEW YORK TIMES MR OAKLEY A RETIRED DIPLOMAT CALLED BACK INTO SERVICE THIS MONTH BY MR CLINTON WAS HIRED EARLIER THIS YEAR BY MIDDLE EAST AIRLINES AS PART OF ITS EFFORT TO REGAIN THE RIGHT TO FLY BETWEEN BEIRUT LEBANON AND THE US AS AN OFFICIAL DURING THE REAGAN ADMINISTRATION MR OAKLEY PLAYED A ROLE IN THE DECISION TO BAR THE FLIGHTS AFTER A US AIRLINER WAS HIJACKED IN 1985 UNDER CONFLICTOFINTEREST LAWS FORMER US OFFICIALS ARE BARRED FROM LOBBYING EFFORTS INVOLVING ISSUES THEY TOOK PART IN DURING GOVERNMENT SERVICE 9310210060 931021 BUSINESS BRIEF CONNECTICUT ENERGY CORP RESULTS IMPROVED SLIGHTLY IN THE YEAR ENDED SEPT 30 CONNECTICUT ENERGY CORP CHAIRMAN JOSEPH CRESPO SAID OPERATING EARNINGS FOR THE YEAR ENDED SEPT 30 WERE ABOUT 113 MILLION OR 155 A SHARE BEFORE A ONETIME CHARGE THE CHARGE 219000 RELATED TO THE SALE OF SEVERAL SMALL MOSTLY DORMANT OIL AND GAS EXPLORATION UNITS REDUCED EARNINGS ABOUT THREE CENTS A SHARE MR CRESPO SAID REVENUE IS ESTIMATED AT 212 MILLION CONNECTICUT ENERGY REPORTED YEAREARLIER NET INCOME OF 102 MILLION OR 143 A SHARE ON REVENUE OF 203 MILLION THE BRIDGEPORT CONN HOLDING COMPANY'S PRINCIPAL UNIT SOUTHERN CONNECTICUT GAS CO IS A NATURALGAS RETAILER 9310210059 931021 DRUCKER ON MANAGEMENT THE FIVE DEADLY BUSINESS SINS BY PETER F DRUCKER THE PAST FEW YEARS HAVE SEEN THE DOWNFALL OF ONE ONCEDOMINANT BUSINESS AFTER ANOTHER GENERAL MOTORS SEARS AND IBM TO NAME JUST A FEW BUT IN EVERY CASE THE MAIN CAUSE HAS BEEN AT LEAST ONE OF THE FIVE DEADLY BUSINESS SINSAVOIDABLE MISTAKES THAT WILL HARM THE MIGHTIEST BUSINESS THE FIRST AND EASILY THE MOST COMMON SIN IS THE WORSHIP OF HIGH PROFIT MARGINS AND OF PREMIUM PRICING THE PRIME EXAMPLE OF WHAT THIS LEADS TO IS THE NEARCOLLAPSE OF XEROX IN THE 1970S HAVING INVENTED THE COPIER AND FEW PRODUCTS IN INDUSTRIAL HISTORY HAVE HAD GREATER SUCCESS FASTER XEROX SOON BEGAN TO ADD FEATURE AFTER FEATURE TO THE MACHINE EACH PRICED TO YIELD THE MAXIMUM PROFIT MARGIN AND EACH DRIVING UP THE MACHINE'S PRICE XEROX PROFITS SOARED AND SO DID THE STOCK PRICE BUT THE VAST MAJORITY OF CONSUMERS WHO NEED ONLY A SIMPLE MACHINE BECAME INCREASINGLY READY TO BUY FROM A COMPETITOR AND WHEN JAPAN'S CANON BROUGHT OUT SUCH A MACHINE IT IMMEDIATELY TOOK OVER THE US MARKET XEROX BARELY SURVIVED GM'S TROUBLES AND THOSE OF THE ENTIRE US AUTOMOBILE INDUSTRY ARE IN LARGE MEASURE ALSO THE RESULT OF THE FIXATION ON PROFIT MARGIN BY 1970 THE VOLKSWAGEN BEETLE HAD TAKEN ALMOST 10 OF THE AMERICAN MARKET SHOWING THERE WAS US DEMAND FOR A SMALL AND FUELEFFICIENT CAR A FEW YEARS LATER AFTER THE FIRST OIL CRISIS THAT MARKET HAD BECOME VERY LARGE AND WAS GROWING FAST YET THE US AUTO MAKERS WERE QUITE CONTENT FOR MANY YEARS TO LEAVE IT TO THE JAPANESE AS SMALLCAR PROFIT MARGINS APPEARED TO BE SO MUCH LOWER THAN THOSE FOR BIG CARS THIS SOON TURNED OUT TO BE A DELUSION IT USUALLY IS GM CHRYSLER AND FORD INCREASINGLY HAD TO SUBSIDIZE THEIR BIGCAR BUYERS WITH DISCOUNTS REBATES CASH BONUSES IN THE END THE BIG THREE PROBABLY GAVE AWAY MORE IN SUBSIDIES THAN IT WOULD HAVE COST THEM TO DEVELOP A COMPETITIVE AND PROFITABLE SMALL CAR THE LESSON THE WORSHIP OF PREMIUM PRICING ALWAYS CREATES A MARKET FOR THE COMPETITOR AND HIGH PROFIT MARGINS DO NOT EQUAL MAXIMUM PROFITS TOTAL PROFIT IS PROFIT MARGIN MULTIPLIED BY TURNOVER MAXIMUM PROFIT IS THUS OBTAINED BY THE PROFIT MARGIN THAT YIELDS THE LARGEST TOTAL PROFIT FLOW AND THAT IS USUALLY THE PROFIT MARGIN THAT PRODUCES OPTIMUM MARKET STANDING CLOSELY RELATED TO THIS FIRST SIN IS THE SECOND ONE MISPRICING A NEW PRODUCT BY CHARGING WHAT THE MARKET WILL BEAR THIS TOO CREATES RISKFREE OPPORTUNITY FOR THE COMPETITION IT IS THE WRONG POLICY EVEN IF THE PRODUCT HAS PATENT PROTECTION GIVEN ENOUGH INCENTIVE A POTENTIAL COMPETITOR WILL FIND A WAY AROUND THE STRONGEST PATENT THE JAPANESE HAVE THE WORLD'S FAXMACHINE MARKET TODAY BECAUSE THE AMERICANS WHO INVENTED THE MACHINE DEVELOPED IT AND FIRST PRODUCED IT CHARGED WHAT THE MARKET WOULD BEAR THE HIGHEST PRICE THEY COULD GET THE JAPANESE HOWEVER PRICED THE MACHINE IN THE US TWO OR THREE YEARS DOWN THE LEARNING CURVE A GOOD 40 LOWER THEY HAD THE MARKET VIRTUALLY OVERNIGHT ONLY ONE SMALL US FAXMACHINE MANUFACTURER WHICH MAKES A SPECIALTY PRODUCT IN TINY QUANTITIES SURVIVES BY CONTRAST DUPONT HAS REMAINED THE WORLD'S LARGEST PRODUCER OF SYNTHETIC FIBERS BECAUSE IN THE MID1940S IT OFFERED ITS NEW AND PATENTED NYLON ON THE WORLD MARKET FOR THE PRICE AT WHICH IT WOULD HAVE TO BE SOLD FIVE YEARS HENCE TO MAINTAIN ITSELF AGAINST COMPETITION THIS WAS SOME TWOFIFTHS LOWER THAN THE PRICE DUPONT COULD THEN HAVE GOTTEN FROM THE MANUFACTURERS OF WOMEN'S HOSIERY AND UNDERWEAR DUPONT'S MOVE DELAYED COMPETITION BY FIVE OR SIX YEARS BUT IT ALSO IMMEDIATELY CREATED A MARKET FOR NYLON THAT NOBODY AT THE COMPANY HAD EVEN THOUGHT ABOUT FOR EXAMPLE IN AUTOMOBILE TIRES AND THIS MARKET SOON BECAME BOTH BIGGER AND MORE PROFITABLE THAN THE WOMEN'S WEAR MARKET COULD EVER HAVE BEEN THIS STRATEGY THUS PRODUCED A MUCH LARGER TOTAL PROFIT FOR DUPONT THAN CHARGING WHAT THE TRAFFIC WOULD BEAR COULD HAVE DONE AND DUPONT KEPT THE MARKETS WHEN THE COMPETITORS DID APPEAR AFTER FIVE OR SIX YEARS THE THIRD DEADLY SIN IS COSTDRIVEN PRICING THE ONLY THING THAT WORKS IS PRICEDRIVEN COSTING MOST AMERICAN AND PRACTICALLY ALL EUROPEAN COMPANIES ARRIVE AT THEIR PRICES BY ADDING UP COSTS AND THEN PUTTING A PROFIT MARGIN ON TOP AND THEN AS SOON AS THEY HAVE INTRODUCED THE PRODUCT THEY HAVE TO START CUTTING THE PRICE HAVE TO REDESIGN THE PRODUCT AT ENORMOUS EXPENSE HAVE TO TAKE LOSSES AND OFTEN HAVE TO DROP A PERFECTLY GOOD PRODUCT BECAUSE IT IS PRICED INCORRECTLY THEIR ARGUMENT WE HAVE TO RECOVER OUR COSTS AND MAKE A PROFIT THIS IS TRUE BUT IRRELEVANT CUSTOMERS DO NOT SEE IT AS THEIR JOB TO ENSURE MANUFACTURERS A PROFIT THE ONLY SOUND WAY TO PRICE IS TO START OUT WITH WHAT THE MARKET IS WILLING TO PAY AND THUS IT MUST BE ASSUMED WHAT THE COMPETITION WILL CHARGEAND DESIGN TO THAT PRICE SPECIFICATION COSTDRIVEN PRICING IS THE REASON THERE IS NO AMERICAN CONSUMERELECTRONICS INDUSTRY ANYMORE IT HAD THE TECHNOLOGY AND THE PRODUCTS BUT IT OPERATED ON COSTLED PRICING AND THE JAPANESE PRACTICED PRICELED COSTING COSTLED PRICING ALSO NEARLY DESTROYED THE US MACHINETOOL INDUSTRY AND GAVE THE JAPANESE WHO AGAIN USED PRICELED COSTING THEIR LEADERSHIP IN THE WORLD MARKET THE US INDUSTRY'S RECENT AND STILL QUITE MODEST COMEBACK IS THE RESULT OF THE US INDUSTRY'S FINALLY HAVING SWITCHED TO PRICELED COSTING IF TOYOTA AND NISSAN SUCCEED IN PUSHING THE GERMAN LUXURY AUTO MAKERS OUT OF THE US MARKET IT WILL BE THE RESULT OF THEIR USING PRICELED COSTING TO BE SURE TO START OUT WITH PRICE AND THEN WHITTLE DOWN COSTS IS MORE WORK INITIALLY BUT IN THE END IT IS MUCH LESS WORK THAN TO START OUT WRONG AND THEN SPEND LOSSMAKING YEARS BRINGING COSTS INTO LINE LET ALONE FAR CHEAPER THAN LOSING A MARKET THE FOURTH OF THE DEADLY BUSINESS SINS IS SLAUGHTERING TOMORROW'S OPPORTUNITY ON THE ALTAR OF YESTERDAY IT IS WHAT DERAILED IBM IBM'S DOWNFALL WAS PARADOXICALLY CAUSED BY UNIQUE SUCCESS IBM'S CATCHING UP ALMOST OVERNIGHT WHEN APPLE BROUGHT OUT THE FIRST PC IN THE MID1970S THIS FEAT ACTUALLY CONTRADICTS EVERYTHING EVERYBODY NOW SAYS ABOUT THE COMPANY'S STODGINESS AND ITS BUREAUCRACY BUT THEN WHEN IBM HAD GAINED LEADERSHIP IN THE NEW PC MARKET IT SUBORDINATED THIS NEW AND GROWING BUSINESS TO THE OLD CASH COW THE MAINFRAME COMPUTER TOP MANAGEMENT PRACTICALLY FORBADE THE PC PEOPLE TO SELL TO POTENTIAL MAINFRAME CUSTOMERS THIS DID NOT HELP THE MAINFRAME BUSINESS IT NEVER DOES BUT IT STUNTED THE PC BUSINESS ALL IT DID WAS CREATE SALES FOR THE IBM CLONES AND THEREBY GUARANTEE THAT IBM WOULD NOT REAP THE FRUITS OF ITS ACHIEVEMENT THIS IS ACTUALLY THE SECOND TIME THAT IBM HAS COMMITTED THIS SIN FORTY YEARS AGO WHEN IBM FIRST HAD A COMPUTER TOP MANAGEMENT DECREED THAT IT MUST NOT BE OFFERED WHERE IT MIGHT INTERFERE WITH THE POSSIBLE SALE OF PUNCH CARDS THEN THE COMPANY'S CASH COW THEN THE COMPANY WAS SAVED BY THE JUSTICE DEPARTMENT'S BRINGING AN ANTITRUST SUIT AGAINST IBM'S DOMINATION OF THE PUNCHCARD MARKET WHICH FORCED MANAGEMENT TO ABANDON THE CARDS AND SAVED THE FLEDGLING COMPUTER THE SECOND TIME PROVIDENCE DID NOT COME TO IBM'S RESCUE HOWEVER THE LAST OF THE DEADLY SINS IS FEEDING PROBLEMS AND STARVING OPPORTUNITIES FOR MANY YEARS I HAVE BEEN ASKING NEW CLIENTS TO TELL ME WHO THEIR BESTPERFORMING PEOPLE ARE AND THEN I ASK WHAT ARE THEY ASSIGNED TO ALMOST WITHOUT EXCEPTION THE PERFORMERS ARE ASSIGNED TO PROBLEMS TO THE OLD BUSINESS THAT IS SINKING FASTER THAN HAD BEEN FORECAST TO THE OLD PRODUCT THAT IS BEING OUTFLANKED BY A COMPETITOR'S NEW OFFERING TO THE OLD TECHNOLOGY EG ANALOG SWITCHES WHEN THE MARKET HAS ALREADY SWITCHED TO DIGITAL THEN I ASK AND WHO TAKES CARE OF THE OPPORTUNITIES ALMOST INVARIABLY THE OPPORTUNITIES ARE LEFT TO FEND FOR THEMSELVES ALL ONE CAN GET BY PROBLEMSOLVING IS DAMAGECONTAINMENT ONLY OPPORTUNITIES PRODUCE RESULTS AND GROWTH AND OPPORTUNITIES ARE ACTUALLY EVERY BIT AS DIFFICULT AND DEMANDING AS PROBLEMS ARE FIRST DRAW UP A LIST OF THE OPPORTUNITIES FACING THE BUSINESS AND MAKE SURE THAT EACH IS ADEQUATELY STAFFED AND ADEQUATELY SUPPORTED ONLY THEN SHOULD YOU DRAW UP A LIST OF THE PROBLEMS AND WORRY ABOUT STAFFING THEM I SUSPECT THAT SEARS HAS BEEN DOING THE OPPOSITE STARVING THE OPPORTUNITIES AND FEEDING THE PROBLEMS IN ITS RETAIL BUSINESS THESE PAST FEW YEARS THIS IS ALSO I SUSPECT WHAT IS BEING DONE BY THE MAJOR EUROPEAN COMPANIES THAT HAVE STEADILY BEEN LOSING GROUND ON THE WORLD MARKET EG SIEMENS IN GERMANY THE RIGHT THING TO DO HAS BEEN DEMONSTRATED BY GE WITH ITS POLICY TO GET RID OF ALL BUSINESSES EVEN PROFITABLE ONES THAT DO NOT OFFER LONGRANGE GROWTH AND THE OPPORTUNITY FOR THE COMPANY TO BE NUMBER ONE OR NUMBER TWO WORLDWIDE AND THEN GE PLACES ITS BESTPERFORMING PEOPLE IN THE OPPORTUNITY BUSINESSES AND PUSHES AND PUSHES EVERYTHING I HAVE BEEN SAYING IN THIS ARTICLE HAS BEEN KNOWN FOR GENERATIONS EVERYTHING HAS BEEN AMPLY PROVED BY DECADES OF EXPERIENCE THERE IS THUS NO EXCUSE FOR MANAGEMENTS TO INDULGE IN THE FIVE DEADLY SINS THEY ARE TEMPTATIONS THAT MUST BE RESISTED MR DRUCKER IS A PROFESSOR OF SOCIAL SCIENCES AT THE CLAREMONT GRADUATE SCHOOL IN CALIFORNIA 9310210058 931021 BUSINESS BRIEF ESTERLINE TECHNOLOGIES CORP COMPANY EXPECTS TO POST LOSS FOR FISCAL FIRST QUARTER ESTERLINE TECHNOLOGIES CORP SAID IT EXPECTS TO POST A LOSS FOR THE FISCAL FIRST QUARTER ENDING JAN 31 BECAUSE OF A SLOWDOWN IN AEROSPACE AND DEFENSE BUSINESS AND CONTINUING WEAKNESS IN INSTRUMENT SALES THE COMPANY WHICH MAKES AUTOMATION EQUIPMENT AND INSTRUMENTS FOR THE AEROSPACE AND ELECTRONICS INDUSTRIES DIDN'T SPECIFY THE LOSS BUT SAID THE REST OF THE FISCAL YEAR SHOULD BE PROFITABLE FOR THE YEAREARLIER PERIOD THE BELLEVUE WASHBASED COMPANY POSTED NET INCOME OF 331000 OR FIVE CENTS A SHARE ON REVENUE OF 673 MILLION ZACKS INVESTMENT RESEARCH INC HAD BEEN FORECASTING FLAT EARNINGS FOR THE QUARTER THE COMPANY SAID THE FISCAL YEAR THAT ENDED OCT 31 WAS MODESTLY PROFITABLE BUT DID NOT RELEASE DETAILS ESTERLINE SHARES FELL 125 CENTS TO 7875 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9310210057 931021 BUSINESS BRIEF SYSCO CORP FOODSERVICE CONCERN'S NET ROSE 7 IN FISCAL 1ST PERIOD SYSCO CORP BENEFITING FROM AN AGGRESSIVE MARKETING EFFORT BY A BEEFEDUP SALES STAFF SAID NET INCOME IN THE FIRST QUARTER ENDED OCT 2 GREW 7 TO 481 MILLION OR 26 CENTS A SHARE FROM 449 MILLIION OR 24 CENTS A SHARE A YEAR AGO THE MOST RECENT PROFIT WAS REDUCED 49 MILLION OR THREE CENTS A SHARE AS A RESULT OF RETROACTIVE TAX LEGISLATION THE COUNTRY'S LARGEST FOODSERVICE DISTRIBUTION CONCERN BASED IN HOUSTON SAID SALES ROSE 12 TO 27 BILLION FROM 24 BILLION IN LINE WITH PROJECTIONS JOHN F WOODHOUSE CHAIRMAN AND CHIEF EXECUTIVE MADE SEVERAL MONTHS AGO MR WOODHOUSE SAID REAL SALES GREW 76 AFTER ADJUSTING FOR ACQUISITIONS AND FOODPRODUCTS INFLATION OF 14 SYSCO COMMON SHARES CLOSED AT 2925 DOWN 75 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9310210056 931021 REVIEW & OUTLOOK EDITORIAL EUROPE'S LEMMINGS THE EUROPEAN PRESS HAS BEEN RESPLENDENT WITH ARTICLES RECENTLY ABOUT A RESURGENT AMERICAN ISOLATIONISM INDEED A MATTER OF REAL CONCERN BUT LESS NOTICED HAS BEEN THE GROWTH OF EUROPEAN ISOLATIONISM THE BRICKS HAVE BEEN FALLING INTO PLACE TAKEN TOGETHER THESE BRICKS ARE BEGINNING TO CONSTITUTE A WALL SEPARATING EUROPE FROM THE REST OF THE WORLD THE BIGGEST BRICKS HAVE COME IN THE FORM OF ANTIIMMIGRATION LAWS NATION AFTER NATION HAS ENACTED MEASURES TO RETARD THE FLOW OF PEOPLE FROM OUTSIDE WESTERN EUROPE THE ECONOMIC HARM CAUSED BY THIS BODY OF LEGISLATION IS BAD ENOUGH BUT THE IMPULSE BEHIND THEM IS WORSE MANY EUROPEANS EVIDENTLY ARE SEEKING A POLITICAL ORDER HOSTILE TO INTIMATE CONTACT WITH THE REST OF THE WORLD INSTEAD THEY ARE SEEKING A POLITICAL ORDER THAT ENCOURAGES HOMOGENEITY A EUROPE OF LEMMINGS WHO IS TO SAY THAT THIS ATTITUDE HASN'T PLAYED A ROLE IN OTHER EUROPEAN POLICIES THERE ARE CERTAINLY MANY GOOD REASONS WHY EUROPE WAS HESITANT TO RUSH INTO BOSNIA BUT THERE WAS ALSO A SENSE IN THE DEBATES THAT BOSNIA EXISTS OVER THERE NOT REALLY IN EUROPE BUT ON THE OTHER SIDE OF SOME PSYCHOLOGICAL LINE EUROPEAN LEADERS HAVE SPENT THE PAST SEVERAL YEARS OBSESSING OVER EUROPEAN COMMUNITY INSTITUTIONS THIS HAS BEEN AN INWARD LOOKING PROCESS AND HAS CONSUMED THE TIME OF THOSE WHO ARE SUPPOSED TO BE CHARGED WITH FOREIGN POLICY MEANWHILE RELATIONS WITH THE OUTSIDE WORLD HAVE SUFFERED THOSE WITH EASTERN EUROPE ARE ESPECIALLY BAD EASTERN LEADERS HAVE HAD THEIR TEMPERS ON RUNNING BOIL THE PAST FEW YEARS OVER EC TRADE BARRIERS AS GATT PRESIDENT PETER SUTHERLAND NOTED ON THIS PAGE RECENT EC ATTEMPTS TO IMPROVE THE SITUATION HAVE BEEN MEAGER ADDING INSULT TO INJURY THE EC AND THE US PRESERVE THEIR ANTIQUARIAN VISA POLICIES ANY EASTERN EUROPEAN HOPING TO TRAVEL TO THE WEST AND NECESSARILY THE TRAVELERS ARE MARKET ORIENTED FORWARD LOOKING OPINION LEADERS MUST WORK THROUGH A TIME CONSUMING AND HUMILIATING SERIES OF BUREAUCRATIC BARRIERS THE RESULT IS ANGER AND RESENTMENT EVERY WEEK BRINGS A REMINDER OF LATENT XENOPHOBIA LEADERS TALK OF THE MENACE OF ANGLOSAXON CURRENCY TRADERS AS IF THE CAPITAL MARKETS WERE INVADERS FROM ABROAD JACQUES DELORS AND EDOUARD BALLADUR SPEAK ABOUT SETTING UP CAPITAL CONTROLS A FINANCIAL FORTRESS EUROPE THE IMPORT AND EXPORT OF ART AND IDEAS IS NOW TALKED ABOUT IN TERMS FORMERLY RESERVED FOR THE THREAT OF INCOMING MISSILES AT THE FRANCOPHONE SUMMIT RECENTLY THE FRENCH WERE PONTIFICATING ABOUT THE THREAT OF WHAT THEY CALL AN IDENTICAL CULTURE WHICH THEY ASSOCIATE WITH THE ANGLOSAXON WORLD WHICH MILLENNIUM ARE THE FRENCH LIVING IN PERHAPS AS THE CHINESE GOVERNMENT RECENTLY ANNOUNCED THE FRENCH SHOULD FORBID THE SALE OF TV SATELLITE DISHES INSIDE THEIR BORDERS WHAT'S HAPPENING ESPECIALLY IN FRANCE IS THAT THE IDEA OF LIBERALIZATION IS BECOMING IDENTIFIED WITH AMERICA AS SOMETHING ALIEN TO EUROPE WE FAIL TO SEE HOW IDEAS PIONEERED BY PEOPLE WITH NAMES LIKE HAYEK ERHARD AND DE TOCQUEVILLE CAN BE CONSIDERED ALIEN TO EUROPE NONE OF THIS APPLIES TO EUROPEAN BUSINESS WHICH HAS BEEN STRIKING INTERNATIONAL ALLIANCES AND DEALS IN GREAT NUMBERS EVEN SETTING UP MANUFACTURING PLANTS AMID OTHER CULTURES BUT FOR THOSE OF US WHO BELIEVE THAT THE REST OF THE WORLD BENEFITS FROM INTIMATE CONTACT WITH EUROPE AND ITS IDEALS THE WINDS OF POLITICAL EUROISOLATIONISM ARE DISTURBING 9310210055 931021 BUSINESS BRIEF CHESAPEAKE CORP THIRDQUARTER NET FELL 60 ON SLIGHT RISE IN REVENUE CHESAPEAKE CORP SAID HIGHER SALES VOLUME BOOSTED REVENUE SLIGHTLY BUT LOW PRICES CONTINUED TO HURT PROFITS DRIVING THIRDQUARTER NET 60 LOWER THE PAPERPRODUCTS CONCERN HAD NET INCOME OF 26 MILLION OR 11 CENTS A SHARE COMPARED WITH 65 MILLION OR 28 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED TO 2383 MILLION FROM 2362 MILLION CHESAPEAKE SAID IT RECORDED A CHARGE OF 24 MILLION OR 10 CENTS A SHARE DUE TO ADVERSE IMPACT OF RECENT TAX LEGISLATION THE COMPANY SAID IT EXPECTS TO RECORD AN 8 MILLION PRETAX GAIN IN THE CURRENT FOURTH QUARTER FROM THE SALE OF ABOUT 19000 ACRES OF NONSTRATEGIC TIMBER HOLDINGS CHESAPEAKE SAID SOME PRICES HAVE BEEN INCREASED BUT PRICES FOR MANY OF ITS PRODUCTS REMAIN LOW THE COMPANY SAID FOURTHQUARTER OPERATING PROFIT WON'T EXCEED THIRDQUARTER RESULTS 9310210054 931021 BUSINESS BRIEF READRITE CORP NET LOSS OF 364 MILLION IS POSTED FOR 4TH QUARTER READRITE CORP CITING A SOFT MARKET AND FIERCE COMPETITION POSTED A FISCAL FOURTHQUARTER NET LOSS OF 364 MILLION OR 105 A SHARE AND SAID IT DIDN'T EXPECT TO RETURN TO PROFITABILITY IN THE FIRST QUARTER THE LOSS WHICH INCLUDES A PREVIOUSLY ANNOUNCED 295 MILLION CONSOLIDATION CHARGE AND WAS GREATER THAN EXPECTED COMPARES WITH NET INCOME OF 148 MILLION OR 48 CENTS A SHARE A YEAR BEFORE FOR THE PERIOD ENDED SEPT 30 THE MILPITAS CALIF MAKER OF FILM HEADS FOR DISK DRIVES SAID REVENUE FELL 41 TO 719 MILLION FROM 1218 MILLION THE LATEST RESULTS WERE ANNOUNCED AFTER THE MARKET CLOSED IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY READRITE STOCK CLOSED AT 9875 UP 125 CENTS FOR FISCAL 1993'S FIRST QUARTER THE COMPANY HAD NET OF 172 MILLION OR 52 CENTS A SHARE ON REVENUE OF 1394 MILLION 9310210052 931021 BUSINESS BRIEF WALMART STORES INC MASSACHUSETTS TOWN'S VOTERS SET BACK BID TO BUILD STORE WALMART STORES INC LOST A REFERENDUM OVER WHETHER THE RETAIL COMPANY WOULD BE PERMITTED TO BUILD A STORE IN THE RURAL WESTERN MASSACHUSETTS TOWN OF GREENFIELD THE DEFEAT IS THE LATEST OF SEVERAL DECISIONS BY SMALL NEW ENGLAND TOWNS TO DENY ENTRY TO BENTONVILLE ARKBASED WALMART MOSTLY OUT OF FEAR THAT THE CHAIN'S LARGE STORES OFFERING LOWPRICED GOODS WOULD HURT LOCAL MERCHANTS IN GREENFIELD A TOWN OF ABOUT 27000 NEAR THE VERMONT BORDER WALMART WAS GRANTED A COMMERCIAL ZONING APPROVAL THIS SUMMER BY GREENFIELD'S TOWN COUNCIL WHICH WAS PETITIONED BY RESIDENTS TO PUT THE ZONING ISSUE TO A REFERENDUM THE REFERENDUM WHICH DREW 5749 VOTES OR 60 OF ELIGIBLE VOTERS DEFEATED THE ZONING PROPOSAL BY A SLIM NINE VOTES WALMART IS DISAPPOINTED ABOUT THE VOTE BUT WE WILL CONTINUE TO PURSUE OTHER SITES IN THE COUNTY AND THE STATE SAYS WALMART SPOKESPERSON JANE AREND 9310210051 931021 BUSINESS BRIEF ALLIEDSIGNAL INC TWO JOINT VENTURES FORMED WITH KNORRBREMSE AG ALLIEDSIGNAL INC SAID IT FORMED TWO JOINT VENTURES WITH GERMANY'S KNORRBREMSE AG TO PROVIDE AIRBRAKE CONTROLS AND RELATED PRODUCTS TO THE WORLDWIDE TRUCK INDUSTRY TERMS WEREN'T DISCLOSED ALLIEDSIGNAL OWNS 65 OF AND MANAGES THE NORTH AMERICAN JOINT VENTURE ALLIEDSIGNAL TRUCK BRAKE SYSTEMS CO ELYRIA OHIO KNORRBREMSE OWNS 65 OF AND MANAGES THE EUROPEAN OPERATIONS KNORRBREMSE SYSTEMS FUR NUTZFAHRZEUGE GMBH MUNICH GERMANY THE JOINT OPERATIONS WILL BE COORDINATED BY A 10MEMBER BOARD WITH EQUAL REPRESENTATION FROM EACH COMPANY THE JOINT OPERATIONS HAVE 10 MANUFACTURING FACILITIES AND ABOUT 4600 EMPLOYEES ALLIEDSIGNAL A MORRIS TOWNSHIP NJ TECHNOLOGY COMPANY WITH AEROSPACE AUTOMOTIVE PRODUCTS AND ENGINEERED MATERIALS INTERESTS HAD SALES OF 12 BILLION IN 1992 KNORRBREMSE IS AN INDEPENDENT INDUSTRIAL COMPANY 9310210050 931021 BUSINESS BRIEF IBP INC MEATPACKER REPORTS PROFIT JUMPED 67 IN 3RD QUARTER IBP INC DAKOTA CITY NEB SAID NET INCOME JUMPED 67 FOR ITS THIRD QUARTER ENDED SEPT 25 TO 222 MILLION OR 46 CENTS A SHARE FROM 133 MILLION OR 28 CENTS PER SHARE A YEAR AGO THE COUNTRY'S LARGEST MEATPACKER SAID INCREASED OPERATING EFFICIENCIES HELPED EARNINGS GAINS THE REPORT MATCHED ANALYSTS' EXPECTATIONS PROFIT GAINS OUTSTRIPED SALES GROWTH WHICH ROSE 63 TO 305 BILLION FROM 287 BILLION A YEAR AGO IT WAS A TERRIFIC QUARTER CONSIDERING THE PORK ENVIRONMENT SAID JOHN M MCMILLIN AN ANALYST AT PRUDENTIAL SECURITIES RESEARCH ANALYSTS VARIOUSLY ESTIMATE THAT 25 TO 30 OF THE COMPANY'S EARNINGS ARE ATTRIBUTED TO PORK OPERATIONS AND AN UNEVEN SUPPLY OF HOGS IN THE QUARTER PUT PRESSURE ON PORK MARGINS BEEF MARGINS HOWEVER IMPROVED AS CATTLE PRICES DROPPED IN THE QUARTER 9310210049 931021 BUSINESS BRIEF ETHAN ALLEN INTERIORS INC FURNITURE FIRM'S STOCK RISES AS EARNINGS TOP ESTIMATES ETHAN ALLEN INTERIORS INC'S STOCK ROSE 14 AS THE FURNITURE MAKER AND RETAILER POSTED FISCAL FIRSTQUARTER EARNINGS THAT SLIGHTLY EXCEEDED ANALYSTS' EXPECTATIONS FOR THE QUARTER ENDED SEPT 30 THE DANBURY CONN COMPANY REPORTED A 43 RISE IN NET INCOME TO 43 MILLION OR 29 CENTS A SHARE FROM PRO FORMA NET INCOME OF 3 MILLION OR 19 CENTS A SHARE A YEAR EARLIER SALES ROSE 13 TO 968 MILLION PRO FORMA RESULTS FOR THE YEAREARLIER QUARTER WERE ADJUSTED AS IF THE COMPANY'S RECAPITALIZATION INCLUDING ITS INITIAL PUBLIC OFFERING IN MARCH WERE COMPLETED AS OF THE START OF THE PREVIOUS FISCAL YEAR A COMPANY OFFICIAL SAID PERSHARE EARNINGS SLIGHTLY EXCEEDED ANALYSTS' ESTIMATES OF 28 CENTS TO 32 CENTS WHEN TAKING INTO ACCOUNT THE EFFECT OF A 500000 OR FOUR CENT A SHARE CHARGE RELATED TO CHANGES IN THE FEDERAL TAX RATE ETHAN ALLEN'S SHARES ROSE 2875 TO 24125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE COMPANY SAID THE SALES INCREASE CAME FROM THE STRENGTHENING OF ITS EXISTING STORE NETWORK IT ALSO SAID IT MADE SIGNIFICANT IMPROVEMENTS IN THE QUARTER IN ITS ABILITY TO MAKE NEW PRODUCTS EFFICIENTLY 9310210048 931021 BUSINESS BRIEF INLAND STEEL INDUSTRIES INC RESULTS FOR THIRD QUARTER TOPPED ANALYSTS' ESTIMATES INLAND STEEL INDUSTRIES INC SAID IT POSTED ITS FIRST QUARTERLY OPERATING PROFIT IN MORE THAN THREE YEARS HOWEVER THE COMPANY HAD A NET LOSS WHEN A SPECIAL TAX CREDIT AND A DIVIDEND ON PREFERRED STOCK ARE TAKEN INTO ACCOUNT THE COMPANY HAD A LOSS OF 2 MILLION OR SIX CENTS A SHARE FOR THE THIRD QUARTER AFTER ACCOUNTING FOR 8 MILLION IN PREFERRED DIVIDENDS AND FOR AN 11 MILLION CREDIT FROM A TAXLOSS CARRYFORWARD FOR THE YEAREARLIER PERIOD INLAND REPORTED A LOSS OF 534 MILLION OR 156 A SHARE CHICAGOBASED INLAND A MAJOR US STEELMAKER SAID SALES IN THE QUARTER ROSE 13 TO 972 MILLION FROM 859 MILLION A YEAR EARLIER THE RESULTS TOPPED EXPECTATIONS OF ANALYSTS WHO HAD FORECAST A LOSS OF 11 CENTS A SHARE ACCORDING TO A CONSENSUS COMPILED BY FIRST CALL CORP A COMPANY THAT GATHERS ANALYSTS' ESTIMATES INLAND RELEASED THE RESULTS AFTER MARKETS CLOSED 9310210047 931021 BANKAMERICA HAS SLIGHT GAIN IN NET INCOME REPUBLIC NEW YORK CORP FLEET FINANCIAL REPORT STRONG 3RDPERIOD PROFIT BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL BANKAMERICA CORP REPORTED A SLIGHT GAIN IN THIRDQUARTER EARNINGS REFLECTING CALIFORNIA'S DEPRESSED ECONOMY WHILE TWO OTHER BIG BANKS REPUBLIC NEW YORK CORP AND FLEET FINANCIAL GROUP POSTED STRONG RESULTS BANKAMERICA'S NET INCOME ROSE 2 FROM THE YEAR BEFORE REPUBLIC POSTED A 15 INCREASE HELPED BY BIG TRADING GAINS FLEET'S PROFIT SURGED 66 BOOSTED BY STRONG PROFIT MARGINS AND INCREASED LENDING ACTIVITY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BANKAMERICA CLOSED AT 4250 DOWN 125 CENTS REPUBLIC ROSE 375 CENTS TO 5075 AND FLEET CLOSED UNCHANGED AT 32125 THE SAN FRANCISCOBASED BANK SAID EARNINGS WOULD HAVE BEEN SLIGHTLY HIGHER BUT FOR A 26 MILLION CHARGE FOR EMPLOYEE BONUSES A KEY FACTOR IN REPORTING CONTINUED EARNINGS GROWTH WAS A DECISION TO REDUCE THE RESERVE AGAINST LOAN LOSSES BY 58 MILLION REFLECTING A 13 DROP IN NONPERFORMING ASSESTS NET CREDIT LOSSES FELL SHARPLY TO 233 MILLION BUT THE PROVISION FOR SUCH LOSSES TOTALED ONLY 175 MILLION NET INTEREST INCOME WAS SLUGGISH GROWING A SLIGHT 29 MILLION TO 188 BILLION NONINTEREST INCOME SLIPPED 51 MILLION TO 101 BILLION FROM THE SECOND QUARTER BECAUSE OF FEWER TRADING GAINS EXPENSES STAYED ABOUT THE SAME AS THE PREVIOUS QUARTER ECONOMIC WEAKNESS CONTINUED TO CONSTRAIN OUR OVERALL BUSINESS VOLUME SAID RICHARD M ROSENBERG CHAIRMAN AND CHIEF EXECUTIVE OFFICER WE ARE MAINTAINING A STRONG FOCUS ON CONTROLLING EXPENSES TO KEEP THEM IN LINE WITH OUR EXPENSES HE NOTED THAT FIVE BUSINESS UNITS INCLUDING RESIDENTIAL LENDING WERE THE STRONGEST CONTRIBUTORS TO REVENUE WITH NO SEGMENT ACCOUNTING FOR MORE THAN 20 ANALYSTS LAUDED THE RETURNING LIQUIDITY AND CREDIT IMPROVEMENT DESPITE BASICALLY FLAT REVENUE THEY'RE REALLY CLEANING UP THE BALANCE SHEET FROM A CREDITQUALITY STANDPOINT SAID JUDAH KRAUSHAAR AN ANALYST AT MERRILL LYNCH MR KRAUSHAAR SAID REPORTS FROM THE THREE BIG BANKS IN CALIFORNIA INCLUDING FIRST INTERSTATE CORP AND WELLS FARGO & CO SHOW THAT THEY HAVE FINALLY MANAGED TO PUT THE REALESTATE FIASCO BEHIND THEM THERE'S STILL A LOT OF PROPERTY OUT THERE THAT'S DISTRESSED HE SAID BUT FROM THE POINT OF VIEW OF THE BANKS THE BLEEDING HAS BEEN STANCHED THE NEW YORKBASED BANK CONTINUED ITS STRONG SHOWING IN ITS TRADINGACTIVITIES BUSINESS WITH EARNINGS FROM THAT GROUP INCREASING 58 TO 619 MILLION IN THE THIRD QUARTER REPUBLIC SAID MUCH OF THE INCREASE CAME FROM A ROBUST PERFORMANCE AT THE NEWLY ESTABLISHED DERIVATIVESTRADING GROUP REPUBLIC IS MOVING FROM TRADITIONAL BANKING TO MORE FEESERVICE ACTIVITIES SUCH AS FACILITATING SWAPS AND OTHER RISKMANAGEMENT ACTIVITIES FOR CORPORATE TREASURERS SAID THOMAS MCCANDLESS AN ANALYST WITH PAINEWEBBER AND THE FEESERVICE BUSINESSES PROVIDE HIGHER RETURNS THAN TRADITIONAL BANK SERVICES REPUBLIC ALSO BENEFITED FROM ITS 49 STAKE IN SAFRA REPUBLIC HOLDINGS SA A EUROPEAN BANKING GROUP WITH NET INCOME FROM THE INVESTMENT IMPROVING 30 IN THE THIRD QUARTER TO 147 MILLION PROVISIONS FOR LOAN LOSSES DECLINED IN THE THIRD QUARTER FALLING TO 20 MILLION FROM 35 MILLION NET LOAN CHARGEOFFS WERE 25 MILLION COMPARED WITH 278 MILLION IN THE YEAREARLIER THIRD QUARTER THE BANK SAID IT HAD ABOUT 379 BILLION IN ASSETS COMPARED WITH 334 BILLION A YEAR AGO THE PROVIDENCE RI BANK NEW ENGLAND'S LARGEST BANKHOLDING COMPANY WITH 469 BILLION IN ASSETS CONTINUES TO SWIFTLY REDUCE NONPERFORMING ASSETS WHICH STOOD AT 736 MILLION DOWN 116 MILLION IN THE QUARTER AND ABOUT HALF THE 142 BILLION IN NONPERFORMERS IN THE YEARBEFORE QUARTER WE HAVE NOTICED MODEST INCREASES IN THE COMMERCIAL AND CONSUMER LOAN PORTFOLIOS AS IT APPEARS THAT LENDING ACTIVITY IN THESE AREAS IS IMPROVING AS THE ECONOMIC RECOVERY IN THE NORTHEAST CONTINUES TO PROGRESS SAID TERRENCE MURRAY THE BANK'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE BANK REPORTED 127 MILLION OF PRETAX SECURITIES GAINS IN THE QUARTER WHICH WERE LARGELY OFFSET BY A RESTRUCTURING ACCRUAL CHARGE OF 125 MILLION FOR A PROGRAM TO STREAMLINE THE BANK THE PROGRAM WHICH MR MURRAY SAYS WILL FUNDAMENTALLY CHANGE THE WAY THAT WE CONDUCT OUR BUSINESS WAS LAUNCHED IN THE THIRD QUARTER AND IS EXPECTED TO RESULT IN SOME STAFF REDUCTIONS AND OFFICE CLOSINGS BY THE TIME IT'S COMPLETED NEXT YEAR MEANWHILE THE BANK'S CONTINUING COST REDUCTIONS HELPED BUOY ITS NET INTEREST MARGIN THE DIFFERENCE BETWEEN ITS COSTS AND WHAT IT CHARGES CUSTOMERS TO 508 UP FROM 483 IN THE YEAREARLIER QUARTER DAVE KANSAS AND RON SUSKIND CONTRIBUTED TO THIS ARTICLE 9310210046 931021 BUSINESS BRIEF TRW INC THIRDQUARTER NET ROSE 16 ON STRONGER CARPARTS SALES TRW INC CREDITING ITS NORTH AMERICAN AUTOMOTIVEPARTS BUSINESS SAID THIRDQUARTER NET INCOME ROSE 16 TO 502 MILLION FROM 433 MILLION A YEAR AGO ON A PERSHARE BASIS EARNINGS CLIMBED TO 77 CENTS FROM 69 CENTS BUT SALES FOR THE QUARTER FELL 6 TO 19 BILLION FROM 203 BILLION TRW OF CLEVELAND BLAMED THE DECLINE ON LOWER EUROPEAN AUTOMOTIVE SALES UNFAVORABLE EXCHANGE RATES AND DIVESTED BUSINESSES HOWEVER STRONGER NORTH AMERICAN SALES IN AIR BAGS SEAT BELTS AND STEERING SYSTEMS ALONG WITH PRODUCTIVITY GAINS BUOYED TRW'S PROFIT THE COMPANY PLANS TO DELIVER 52 MILLION AIR BAGS THIS YEAR UP FROM 27 MILLION LAST YEAR OPERATING PROFIT IN TRW'S SPACE AND DEFENSE UNIT FELL 5 TO 54 MILLION FROM 57 MILLION ON LOWER SALES FROM SPACECRAFT AND ELECTRONIC SYSTEMS TRW'S INFORMATION SYSTEMS AND SERVICES BUSINESS BOOSTED OPERATING PROFIT 14 TO 24 MILLION FROM 21 MILLION PARTIALLY BECAUSE OF COSTCUTTING 9310210045 931021 COMMODITIES RICE FUTURES PRICES JUMP AS RESULT OF COMMENTS BY ESPY THAT JAPAN MAY PURCHASE US GRAIN BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO PRICES OF RICE FUTURES CONTRACTS JUMPED BECAUSE US AGRICULTURE SECRETARY MIKE ESPY SPECULATED THAT JAPAN MIGHT BUY UP TO 500000 METRIC TONS OF US RICE IN TRADING AT THE MIDAMERICA COMMODITY EXCHANGE THE ROUGH RICE CONTRACT FOR NOVEMBER DELIVERY JUMPED 29 CENTS PER 100 POUNDS TO SETTLE AT 927 PER 100 POUNDS US RICE SALES HAVE BEEN BLOCKED BY JAPAN'S POLICY OF RICE SELFSUFFICIENCY BUT A RICE CROP DISASTER THIS YEAR MEANS JAPAN'S DOMESTIC PRODUCTION OF THE STAPLE CROP WILL FALL SHORT OF ITS INTERNAL CONSUMPTION BY ROUGHLY TWO MILLION METRIC TONS MR ESPY WHO IS TRAVELING IN ASIA SAID DURING A TELEPHONE NEWS CONFERENCE YESTERDAY THAT JAPANESE OFFICIALS TOLD HIM US RICE EXPORTERS WILL PARTICIPATE IN A CONSIDERABLE FASHION IN THE ONETIME BUSINESS JAPANESE OFFICIALS WEREN'T SPECIFIC BUT MR ESPY SAID THAT TO HIM CONSIDERABLE COULD MEAN AS MUCH AS 300000 METRIC TONS TO 500000 METRIC TONS OF THE JAPANESE BUSINESS MR ESPY'S COMMENTS LEND CREDENCE TO EARLIER SPECULATION IN THE GRAIN TRADE THAT JAPAN MIGHT BUY ROUGHLY 400000 METRIC TONS OF US RICE THE AGRICULTURE SECRETARY SAID JAPANESE BUYERS ARE ALREADY IN SACRAMENTO CALIF TO ARRANGE RICE PURCHASES THE CLINTON ADMINISTRATION IS USING THE CROP DISASTER TO LOBBY THE JAPANESE TO PERMANENTLY LOWER THEIR BARRIERS TO US RICE WHICH IS AN ISSUE THAT HAS LONG DOGGED BILATERAL TRADE RELATIONS NO POLICY OF SELFSUFFICIENCY CAN GUARANTEE FOOD SECURITY MR ESPY SAID SO FAR HOWEVER THE JAPANESE GOVERNMENT HAS GIVEN ONLY MUTED SIGNS THAT IT WOULD OPEN ITSELF TO US RICE AFTER THE CROP DISASTER PASSES IN OTHER AGRICULTURAL MARKETS THE WHEAT CONTRACT FOR DECEMBER DELIVERY AT THE CHICAGO BOARD OF TRADE ROSE THREE CENTS A BUSHEL TO SETTLE AT 33325 A BUSHEL ACCORDING TO WHEAT TRADERS THE RALLY WAS FUELED BY REPORTS THAT RUSSIA IS INTERESTED IN BUYING ABOUT 90000 METRIC TONS OF US WHEAT UNDER A US FOOD AID PACKAGE THE PRICE OF THE WHEAT CONTRACT WAS ALSO SUPPORTED BY REPORTS OF MR ESPY'S TRIP TO CHINA ACCORDING TO MR ESPY CHINESE TRADE OFFICIALS ARE INTERESTED IN BEIJING BECOMING ELIGIBLE FOR THE AGRICULTURE DEPARTMENT'S CREDIT GUARANTEE PROGRAM UNDER THAT PROGRAM THE DEPARTMENT ENCOURAGES BANKS TO FINANCE FOREIGN PURCHASES OF US CEING REPAYMENT OF SOUR LOANS GRAIN TRADERS HAVE BEEN SPECULATING FOR SEVERAL WEEKS THAT THE CLINTON ADMINISTRATION IS WILLING TO OFFER THE PROGRAM TO CHINA AS A WAY TO RESURRECT BEIJING'S IMPORTS OF US CROPS MR ESPY WASN'T SPECIFIC ABOUT THE AMOUNT OF CREDIT GUARANTEES CHINA MIGHT WANT AND WARNED THAT ANY AGREEMENT IS FAR OUT INTO THE FUTURE CHINA HAS BEEN ONE OF THE BIGGEST BUYERS OF US WHEAT BUT THE US SHARE OF ITS FARM IMPORTS IS DECLINING AND CHINA IS PRODUCING MORE OF ITS OWN CROPS AGRESOURCE CO IN CHICAGO EXPECTS CHINA TO IMPORT ABOUT SEVEN MILLION METRIC TONS OF FOREIGN WHEAT DURING THE YEAR ENDING IN JUNE 1994 GRAIN TRADERS EXPECT US WHEAT TO REPRESENT BETWEEN ONETHIRD AND ONEHALF OF THOSE PURCHASES CHINA IMPORTED 158 MILLION METRIC TONS OF WHEAT FROM ALL SOURCES IN 1992 IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD AND SILVER FUTURES PRICES SURGED ON MOSTLY TECHNICAL BUYING TRADERS SAID ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY JUMPED 350 TO 37380 AN OUNCE EXTENDING THIS WEEK'S MINIRALLY COMEX DECEMBER SILVER PRICES ADDED A HEFTY 1130 CENTS TO SETTLE AT 4543 AN OUNCE DEALERS SAID THAT MIDDLE EASTERN SPECULATORS WERE ACTIVE BUYERS IN THE LONDON MARKET AND ADDED FUEL TO NEW YORK PURCHASING ACTIVITY WHICH THEY SAID CONTINUES TO BE SPEARHEADED BY LARGE COMMODITY FUNDS SUCH FUNDS ARE MANAGED POOLS OF INVESTORS' MONEY ALSO ADDING SUPPORT WERE MOVES THIS WEEK BY TWO LEADING COMMERCIAL BANKS TO LOWER THEIR PRIME LENDING RATE TO 55 FROM 6 LOWER RATES DIMINISH THE OPPORTUNITY COST INCLUDING CARRYING CHARGES OF OWNING GOLD AND ALSO LOWER THE THRESHOLD FOR A POTENTIAL RETURN OF INFLATION GOLD IS A TRADITIONAL HEDGE AGAINST INFLATION MOST DEALERS NOW EXPECT GOLD TO RUN INTO RESISTANCE AROUND 375376 AN OUNCE AND ARE QUICK TO ADD THAT ANY ATTEMPT AT 380 OR HIGHER WILL BE MET WITH PRODUCER SELLING SOME SOUTH AFRICAN PRODUCERS TOOK ADVANTAGE OF THE PRICE RUNUP YESTERDAY AND SOLD SOME INVENTORY PRODUCERS ARE WORRIED THAT THE PHYSICAL MARKET WILL BE DAMAGED BY SHARP UNSUSTAINABLE RALLIES BULLION ANALYSTS SAID MOREOVER THEY ADD PRICESENSITIVE JEWELERS WILL ALSO BECOME RELUCTANT TO SPEND HEAVILY FOLLOWING GOLD'S 30 RECOVERY FROM SEPTEMBER'S LOWS OF 342 THEY ADD PHYSICAL DEMAND FOR GOLD RECOVERED WHEN IT WAS TRADING AROUND 350 SAID HANS PETER HAUSHEER PRECIOUS METALS ANALYST AT SWISS BANK CORPORATION IN ZURICH NOW THAT PRICES ARE MUCH HIGHER DEMAND FROM JEWELERS IN EUROPE THE FAR AND THE MIDDLE EAST IS SLACKENING HE SAID NEVERTHELESS AFTER SOME RESISTANCE AROUND 375 INVESTORS COULD PUSH PRICES HIGHER MR HAUSHEER SAID SOME ANALYSTS CAUTION THAT THE RECENT SURGE IN GOLD PRICES IS NOTHING MORE THAN A SPECULATIVE PAPER RALLY THAT COULD FIZZLE WITHOUT RENEWED BUYING FROM JEWELERS AND OTHER INDUSTRIAL USERS OF THE PRECIOUS METAL COMMODITY FUNDS WHICH CONTROL THE PAPER MARKETS HAVE A VESTED INTEREST IN SEEING HIGH VOLUMES AND VOLATILE PRECIOUS METALS MARKETS SAID TED ARNOLD METALS ANALYST AT MERRILL LYNCH IN LONDON UNLESS THE RALLIES ARE SUSTAINED BY STRONG PHYSICAL PURCHASES THEY WON'T LAST FOR MORE THAN A FEW MONTHS MR ARNOLD PREDICTED 9310210044 931021 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION DAYTON POWER & LIGHT CO A UNIT OF DPL CORP AN OFFERING OF UP TO 66 MILLION OF FIRST MORTGAGE BONDS VIA CS FIRST BOSTON AND MORGAN STANLEY & CO HARMAN INTERNATIONAL INDUSTRIES INC AN OFFERING OF 2850000 COMMON SHARES VIA MONTGOMERY SECURITIES DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND LEHMAN BROTHERS ITRON INC AN INITIAL OFFERING OF THREE MILLION COMMON SHARES VIA CS FIRST BOSTON AND HAMBRECHT & QUIST INC MORGAN STANLEY GROUP INC A SHELF OFFERING OF 2 BILLION OF DEBT SECURITIES WARRANTS AND PREFERRED STOCK VIA MORGAN STANLEY & CO NICOLAH GROUP INC AN OFFERING OF UP TO 75 MILLION OF SENIOR NOTES DUE 2003 VIA DONALDSON LUFKIN & JENRETTE REPAP WISCONSIN INC AN OFFERING OF UP TO 400 MILLION OF SENIOR SECURED NOTES TRIQUINT SEMICONDUCTOR INC AN INITIAL OFFERING OF TWO MILLION COMMON SHARES VIA MONTGOMERY SECURITIES AND COWEN & CO 9310210043 931021 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 AGRICULTURE MINERALS & CHEMICALS CORP 175 MILLION OF SENIOR NOTES PRICED AT PAR TO YIELD 1075 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS WERE RATED SINGLEB2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO BHP FINANCE USA LTD 500 MILLION TWOPART ISSUE PRICED BY UNDERWRITERS LED BY MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 300 MILLION OF NOTES DUE NOV 1 2000 WAS PRICED AS 5625S AT 9975 TO YIELD 5669 THE NOTES NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 68 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 200 MILLION OF DEBENTURES DUE NOV 1 2013 WAS PRICED AS 675S AT 9955 TO YIELD 6791 THE DEBENTURES NONCALLABLE FOR SIX YEARS WERE PRICED AT A SPREAD OF 78 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P BHP IS A UNIT OF BROKEN HILL PROPRIETARY CO FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF FLOATINGRATE NOTES DUE OCT 27 1998 PRICED AT PAR TO YIELD 3908 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED FIVE BASIS POINTS BELOW THE COSTOFFUNDS INDEX THE NOTES WILL PAY QUARTERLY AND FLOAT MONTHLY FIVE BASIS POINTS BELOW THE INDEX THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION OF MEDIUMTERM NOTES DUE NOV 4 2003 PRICED AT PAR TO YIELD 582 ACCORDING TO MCM CORPORATEWATCH THEY WERE PRICED AT A SPREAD OF 58 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON HARRIS CHEMICAL NA INC 585 MILLION TWOPART ISSUE PRICED BY UNDERWRITERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 250 MILLION FACE AMOUNT IN SENIOR SECURED NOTES DUE JULY 15 2001 WAS PRICED AT 80147 TO YIELD 1025 THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLEB2 BY MOODY'S AND SINGLEBPLUS BY S&P THE SECOND TRANCHE 335 MILLION OF SENIOR SUBORDINATED NOTES DUE OCT 15 2003 WAS PRICED AT PAR TO YIELD 1075 THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P HARRIS CHEMICAL NA IS A UNIT OF HARRIS CHEMICAL GROUP INC JERSEY CENTRAL POWER & LIGHT CO 150 MILLION OF FIRST MORTGAGE BONDS DUE OCT 1 2025 PRICED AS 675S AT 98887 TO YIELD 6836 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 83 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE BONDS WERE SOLD THROUGH A COMPETITIVE BID WON BY MORGAN STANLEY & CO JERSEY CENTRAL IS A UNIT OF GENERAL PUBLIC UTILITIES CORP MAXUS ENERGY CORP 200 MILLION OF NOTES DUE NOV 1 2003 PRICED AT PAR TO YIELD 9375 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR SEVEN YEARS ARE RATED SINGLEB1 BY MOODY'S AND DOUBLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON SIFTO CANADA INC 100 MILLION ISSUE OF SENIOR SECURED NOTES MATURING JULY 15 2003 ACCORDING TO MCM CORPORATEWATCH THE NOTES WERE PRICED AT PAR TO YIELD 85 AND ARE RATED SINGLEB1 BY MOODY'S AND DOUBLEBMINUS BY S&P THE DEBT WAS PRICED BY UNDERWRITERS LED BY GOLDMAN SACHS & CO SIFTO IS A UNIT OF HARRIS CHEMICAL AQUILA GAS PIPELINE CORP INITIAL PUBLIC OFFERING OF 54 MILLION COMMON SHARES PRICED AT 15 APIECE ACCORDING TO AQUILA PARENT UTILICORP UNITED INC ALABAMA PUBLIC SCHOOL AND COLLEGE AUTHORITY 1046 MILLION SERIES 1993A REFUNDING BONDS PRICED BY A MORGAN STANLEY & CO GROUP YIELDS RANGE FROM 38 IN 1998 TO 47 IN 2006 MOODY'S RATED THE ISSUE DOUBLEA AND S&P HAS ASSIGNED A DOUBLEAMINUS RATING HAWAII 5722 MILLION OF GENERALOBLIGATION BONDS AND GENERALOBLIGATION REFUNDING BONDS TENTATIVELY PRICED BY A MERRILL LYNCH & CO GROUP TO YIELD FROM 34 IN 1996 TO 495 IN 20112013 THE BONDS ARE RATED DOUBLEA BY BOTH MOODY'S AND S&P THE ISSUE IS NONCALLABLE FEDERAL NATIONAL MORTGAGE ASSOCIATION 17 BILLION OF STRIPPED MORTGAGEBACKED SECURITIES TRUST 251 BACKED BY THE AGENCY'S 30YEAR 8 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 85 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 338 MONTHS UNDERWRITERS INCLUDE KIDDER PEABODY & CO SALOMON BROTHERS INC MORGAN STANLEY & CO DONALDSON LUFKIN & JENRETTE SECURITIES CORP MERRILL LYNCH & CO FIRST BOSTON CORP GREENWICH CAPITAL MARKETS INC PAINEWEBBER INC LEHMAN BROTHERS INC NIKKO SECURITIES CO INTERNATIONAL AND SMITH BARNEY SHEARSON INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES 1993233 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 665 AND WEIGHTED AVERAGE MATURITY OF 179 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 360 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1993231 IS BACKED BY FANNIE MAE 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 6625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 360 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1993234 IS BACKED BY THE AGENCY'S 15YEAR 55 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 6125 AND WEIGHTED AVERAGE MATURITY OF 178 MONTHS CSX TRANSPORTATION INC 200 MILLION OF SENIOR ASSETBACKED CERTIFICATES PRICED AS 505S AT 99 31/32 TO YIELD 5111 ACCORDING TO MCM CORPORATEWATCH THE PRICING WAS AT A SPREAD OF 48 BASIS POINTS ABOVE THE TREASURY'S 475 NOTES OF SEPTEMBER 1998 THE CERTIFICATES HAVE AN AVERAGE LIFE OF 49 YEARS THE COLLATERAL IS TRADE RECEIVABLES OWED TO CSX TRANSPORTATION AND SOLD TO A SPECIALPURPOSE CORPORATION CSX TRADE RECEIVABLES CORP RATED TRIPLEA BY BOTH MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON THE SENIOR CERTIFICATES WERE SUPPORTED BY A 13 SUBORDINATE CLASS PRICING DETAILS ON THE CLASS WEREN'T AVAILABLE CAISSE AUTONOME DE REFINANCEMENT FRENCH AGENCY 300 MILLION FRENCH FRANCS OF REVERSECOUPON FLOATINGRATE EURONOTES DUE NOV 10 2000 AT ISSUE AND REOFFER PRICE PAR VIA BANQUE PARIBAS COUPON 7 FOR FIRST YEAR THEREAFTER COUPON REVERTS TO 1565 LESS TWICE SIXMONTH PARIS INTERBANK OFFERED RATE FEES UNDISCLOSED CANON SALES CO JAPANESE PARENT 450 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE NOV 18 1997 WITH EQUITYPURCHASE WARRANTS CARRYING 05 COUPON AT PAR VIA SWISS BANK CORP WARRANTS EXERCISABLE FROM DEC 2 1993 TO DEC 11 1997 TO PURCHASE COMPANY SHARES AT EXPECTED 25 PREMIUM ABOVE CLOSING PRICE TUESDAY WHEN TERMS FIXED FEES 15 CMIC FINANCE & SERVICES PUBLIC CO THAILAND 50 MILLION OF CONVERTIBLE EUROBONDS DUE NOV 8 2003 AT ISSUE PRICE PAR VIA NOMURA INTERNATIONAL PLC INDICATED COUPON 35 BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES FROM JAN 7 1994 TO SEPT 30 2003 AT INDICATED PREMIUM 11 TO 13 OVER CLOSING SHARE PRICE TODAY WHEN TERMS FIXED BONDS CALLABLE FROM NOV 12 1996 AT PAR SUBJECT TO THENPREVAILING SHARE PRICE BEING AT LEAST 140 OF CONVERSION PRICE PUT OPTION EXERCISABLE ON NOV 12 1998 AT PRICE TO YIELD 125 BASIS POINTS ABOVE FIVEYEAR US TREASURY FEES 25 LESS 035 DEDUCTED FOR LEAD MANAGER CREDIT SUISSE SWISS PARENT 500 MILLION MARKS OF 625 SUBORDINATED EUROBONDS DUE NOV 18 2003 VIA CSFBEFFECTENBANK AG FIRST 400 MILLION MARKS AT ISSUE PRICE 1024 RECOMMENDED REOFFER PAR TO YIELD 625 A MARGIN OF 41 BASIS POINTS OVER COMPARABLE BUND ADDITIONAL 100 MILLION MARKS AT ISSUE PRICE 1025 FEES 25 CREDIT SUISSE IS A UNIT OF CS HOLDING GENERAL ELECTRIC CAPITAL CORP US PARENT 250 MILLION ISSUE OF SOCALLED DRAGON BONDS PRICED AT 9986 AND CARRYING A 425 COUPON THEY WERE PRICED AT A MARGIN OF 18 BASIS POINTS OVER THE COMPARABLE US TREASURY ISSUE THE BONDS MATURE NOV 8 1996 PAYMENT DATE IS NOV 8 1993 INTEREST WILL BE PAID ANNUALLY LEHMAN BROTHERS SECURITIES ASIA LTD IS THE LEAD MANAGER DEBT OF GE CAPITAL CORP A SUBSIDIARY OF GENERAL ELECTRIC CO IS RATED TRIPLEA BY BOTH MOODY'S AND S&P DRAGON BONDS ARE DEBT SECURITIES THAT MAINLY TARGET INSTITUTIONAL INVESTORS IN ASIA OUTSIDE JAPAN HEIWADO CO JAPAN 200 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE NOV 11 1997 WITH EQUITYPURCHASE WARRANTS CARRYING 05 COUPON AT PAR VIA DAIWA BANK LTD WARRANTS EXERCISABLE FROM NOV 25 1993 TO OCT 28 1997 TO BUY COMPANY SHARES AT EXPECTED 25 PREMIUM ABOVE CLOSING PRICE MONDAY WHEN TERMS FIXED FEES 15 JAPAN FINANCE CORP FOR SMALL BUSINESS JAPAN 200 MILLION SWISS FRANCS OF 4125 PUBLIC BONDS DUE NOV 22 2000 PRICED AT 102875 VIA SWISS BANK CORP FEES 25 LUXEMBOURG SOVEREIGN 385 BILLION LUXEMBOURG FRANCS OF 65 OBLIGATION LINEAIRES DUE OCT 22 2003 SOLD AT AN AVERAGE PRICE OF 102298 YIELDING 6185 AT A DUTCHSTYLE AUCTION BIDS AT THE AUCTION AMOUNTED TO 25395 BILLION FRANCS FOR A BIDTOCOVER RATIO OF 66 THE LOWEST PRICE OF THE BIDS WAS 955 AND THE MAXIMUM PRICE OF THE BIDS WAS 103 THE TREASURY SAID IT ACCEPTED FIVE OF THE 108 BIDS SUBMITTED IT ADDED THAT IT FILLED 100 OF THE ACCEPTED BIDS AT THE LOWEST ACCEPTED PRICE OF 10200 YIELDING 623 PAYMENT IS DUE FRIDAY PEUGEOT TALBOT MOTOR CO FRENCH PARENT 50 MILLION OF 7625 EUROBONDS DUE DEC 22 1997 AT ISSUE PRICE 10395 VIA NATWEST CAPITAL MARKETS LTD BONDS WILL TRADE INTERCHANGEABLY WITH 100 MILLION OF OUTSTANDING IDENTICAL BONDS REOFFERED AT 102575 TO YIELD 688 A SPREAD OF 80 BASIS POINTS ABOVE COMPARABLE GILT GUARANTOR AUTOMOBILES PEUGEOT FEES 1625 SEVEL ARGENTINA SA ARGENTINA 100 MILLION OF 85 EUROBONDS DUE NOV 17 1996 AT ISSUE AND REOFFER PRICE 99784 VIA CITIBANK INTERNATIONAL PLC BONDS YIELD 8583 A SPREAD OF 450 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 125 INTEREST PAYABLE SEMIANNUALLY WORLD BANK SUPRANATIONAL THREE BILLION MARKS OF 5875 GLOBAL BONDS DUE NOV 10 2003 AT ISSUE AND REOFFER PRICE 99808 VIA DEUTSCHE BANK AG AND SALOMON BROTHERS AG BONDS YIELD 5901 A SPREAD OF SIX BASIS POINTS ABOVE COMPARABLE GERMAN BUND FEES 0325 9310210042 931021 TENNECO NET ROSE SHARPLY IN 3RD QUARTER BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON TENNECO INC SAID THIRDQUARTER NET INCOME MORE THAN DOUBLED SHOWING THE EFFECTS OF COSTCUTTING INVENTORY REDUCTIONS AND STRONGER PRICING BUT THE EARNINGS INCLUDED A SERIES OF NONRECURRING GAINS AND WALL STREET APPARENTLY FOCUSED ON LINGERING ECONOMIC WEAKNESSES THAT PLAGUE CERTAIN OF THE CONGLOMERATE'S OPERATIONS IN TRADING ON THE NEW YORK STOCK EXCHANGE TENNECO SHARES CLOSED AT 5150 DOWN 1 TENNECO REPORTED EARNINGS OF 114 MILLION OR 63 CENTS A SHARE COMPARED WITH 46 MILLION OR 28 CENTS A SHARE A YEAR EARLIER THE MOST RECENT QUARTER INCLUDED A GAIN OF 11 MILLION OR SIX CENTS A SHARE ON THE SALE OF ASSETS IN THE PACKAGING DIVISION A 23 MILLION GAIN OR 13 CENTS A SHARE FROM AN ACCOUNTING CHANGE INVOLVING POSTRETIREMENT EMPLOYEE BENEFITS AND AN ACCOUNTING ADJUSTMENT OF 8 MILLION OR FIVE CENTS A SHARE RELATED TO TAX RATES THE QUARTER ALSO INCLUDED A CHARGE OF 2 MILLION OR ONE CENT A SHARE ON THE EARLY PAYMENT OF CERTAIN DEBT EXCLUDING SPECIAL ITEMS EARNINGS ROSE 79 TO 88 MILLION OR 50 CENTS A SHARE REVENUE FELL SLIGHTLY TO 315 MILLION FROM 318 MILLION THE RESULTS WERE SLIGHTLY ABOVE THE EXPECTATIONS OF MOST ANALYSTS SOME OF WHOM EXPRESSED SURPRISE THAT THE LONGTROUBLED CASE CORP AGRICULTURAL AND CONSTRUCTION EQUIPMENT UNIT WHICH MUCH OF WALL STREET HAD FORECAST TO BREAK EVEN HAD PRETAX PROFIT OF 10 MILLION COMPARED WITH A LOSS OF 68 MILLION A YEAR AGO RONALD J BARONE OF KIDDER PEABODY & CO SAID CASE HAD A VERY IMPRESSIVE QUARTER A MAJOR TURNAROUND ANALYSTS GENERALLY CREDIT THE IMPROVED EARNINGS TO THE RESTRUCTURING STRATEGY OF MICHAEL WALSH TENNECO'S CHAIRMAN AND CHIEF EXECUTIVE WHO TOOK OVER TWO YEARS AGO MR WALSH WHO DISCLOSED IN JANUARY THAT HE HAS BRAIN CANCER SAID YESTERDAY THAT HE'S FEELING FINE MR WALSH ADDED THAT IN THE FIRST NINE MONTHS TENNECO SLICED ABOUT 400 MILLION FROM OPERATING COSTS HE HAS REDUCED EMPLOYMENT TO 77500 ROUGHLY 1000 LESS THAN A YEAR AGO AT CASE THE LARGEST OF TENNECO'S SIX DIVISIONS WHICH ACCOUNTS FOR 27 OF THE COMPANY'S REVENUE INVENTORIES HAVE BEEN REDUCED BY 1 BILLION IN THE LAST TWO YEARS SOME DIVISIONS SUCH AS PACKAGING AND SHIPBUILDING WERE HURT BY WEAKNESSES IN THEIR ECONOMIC SECTORS YET PACKAGING'S PRETAX PROFIT ROSE SLIGHTLY TO 51 MILLION FROM 49 MILLION DANA MEAD PRESIDENT AND CHIEF OPERATING OFFICER SAID THE COMPANY IS STRUGGLING TO POST GAINS IN THE MIDST OF A SLOW AND AGONIZING RECOVERY IN THE THE US ECONOMY WHILE WE WOULD WELCOME AN ASSIST FROM THE ECONOMY WE ARE SYSTEMATICALLY GETTING OURSELVES INTO A POSITION TO BE VERY PROFITABLE EVEN WITH SLOW GROWTH BUT COST REDUCTIONS DIDN'T SQUEEZE A PROFIT OUT OF TENNECO'S SHIPBUILDING DIVISION WHICH IS STRUGGLING IN THE WAKE OF CONGRESSIONAL CUTS IN MILITARY SPENDING THE DIVISION'S PRETAX PROFIT FELL 25 TO 51 MILLION FROM 68 MILLION FOR THE NINE MONTHS TENNECO REPORTED NET INCOME OF 276 MILLION OR 160 A SHARE IT HAD A NET LOSS OF 497 MILLION OR 356 A SHARE IN THE YEAREARLIER PERIOD THE MOST RECENT PERIOD INCLUDED A CHARGE OF 25 MILLION OR 15 CENTS A SHARE FROM EARLY PAYMENT OF DEBT THE YEAREARLIER PERIOD INCLUDED A CHARGE OF 699 MILLION OR 488 A SHARE FROM THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE AND INCOME OF 71 MILLION OR 50 CENTS A SHARE FROM DISCONTINUED OPERATIONS REVENUE ROSE SLIGHTLY TO 988 BILLION FROM 983 BILLION 9310210041 931021 TECHNOLOGY & HEALTH APPLE REDUCES PRICES UP TO ANOTHER 35 ON SOME MAC MODELS SAN FRANCISCO APPLE COMPUTER INC LAUNCHING A FRESH SALVO IN ITS FIGHT FOR MARKET SHARE IS CUTTING PRICES ON PART OF ITS ALREADYREDUCED LINE OF MACINTOSH PERSONAL COMPUTERS BY AS MUCH AS ANOTHER 35 AND GIVING THEM MORE POWER TO BOOT THE PRICE CUTS EFFECTIVE TODAY ARE THE SIXTH SINCE APRIL BY THE CUPERTINO CALIF COMPUTER MAKER AND REINFORCE THE FIRM'S NEW AGGRESSIVENESS TO RECAPTURE MARKET SHARE IN AN ERA OF ERODED PROFIT MARGINS THEY FURTHER UNDERSCORE APPLE'S INTENT TO MAINTAIN SALES OF EXISTING MACINTOSH TECHNOLOGY DURING THE COMPANY'S TRANSITION NEXT MARCH TO A NEW LINE OF MACINTOSHES POWERED BY THE POWERPC MICROPROCESSOR CHIP ALTHOUGH SOME CENTRIS AV AND QUADRA AV MODELS HAVE BEEN IN SHORT SUPPLY ALONG WITH LC IIIS APPLE VOWS IT HAS ENOUGH INVENTORY ON HAND TO MAKE SURE THE REVAMPED PRODUCT LINES DON'T BECOME INITIALLY SCARCE IAN W DIERY EXECUTIVE VICE PRESIDENT OF APPLE'S PC DIVISION SAID APPLE HAS A FOUR TO SIXWEEK SUPPLY OF THE REVAMPED PRODUCTS ON HAND AT A NEWS CONFERENCE YESTERDAY APPLE UNVEILED SOME NEW OFFERINGS IN ITS EXISTING HIGHEND QUADRA AND EDUCATIONORIENTED LC LINES OF MACINTOSHES AS WELL AS UPGRADED MODELS OF THE COMPANY'S POWERBOOK DUO LINE OF PORTABLE NOTEBOOK COMPUTERS AS REPORTED EARLIER APPLE ALSO SIMPLIFIED A PRODUCT LINE THAT HAD BEEN CRITICIZED BY SOME BUYERS AS CONFUSING BY FOLDING THE CENTRIS LINE INTO THE QUADRA LINE CONTRARY TO WHAT SOME ANALYSTS HAD REPORTED THE LC LINE INTENDED FOR EDUCATIONAL USE CONTINUES ENTRYLEVEL PERFORMAS FOR CONSUMERS WILL ALSO BE MARKETED SEPERATELY 9310210040 931021 MARKETING & MEDIA CAROLCO CUTS DEBT GETS NEW CAPITAL AS IT COMPLETES A REVAMP LOS ANGELES FILMMAKER CAROLCO PICTURES INC AVERTED A THREATENED BANKRUPTCYLAW REORGANIZATION BY COMPLETING A DIFFICULT FINANCIAL RESTRUCTURING THAT UNDERWENT MANY CHANGES SINCE ITS FILING IN DECEMBER CAROLCO SAID IT RECEIVED 1125 MILLION IN NEW CAPITAL AND SIGNIFICANTLY REDUCED ITS BANK DEBT AS A RESULT OF THE RESTRUCTURING THE FUNDS WILL BE USED MAINLY FOR NEW MOVIE PRODUCTION A SPOKESWOMAN SAID DIRECTOR PAUL VERHOEVEN AND WRITER JOE ESZTERHAS WHO MADE BASIC INSTINCT HAVE SAID THEY WILL WORK WITH CAROLCO CHAIRMAN MARIO KASSAR ON A FILM CALLED SHOWGIRLS CLIFFHANGER DIRECTOR RENNY HARLIN ALSO HAS ANNOUNCED A PROJECT WITH MR KASSAR CALLED CUTTHROAT ISLAND AS PART OF THE RESTRUCTURING PIONEER ELECTRONIC CORP OF JAPAN A UNIT OF FRANCE'S CANAL PLUS SA AND AN AFFILIATE OF METROGOLDWYNMAYER INC PAID 825 MILLION FOR A NEW CLASS OF PREFERRED STOCK MGM ALSO PURCHASED 30 MILLION OF 5 PAYMENTINKIND CONVERTIBLE SUBORDINATED NOTES AFTER SOME SECURITIES EXCHANGES AMONG OTHER TRANSACTIONS PIONEER CANAL PLUS AND A SUBSIDIARY OF ITALY'S RIZZOLI CORRIERE DELLA SERA GROUP CONTROL ABOUT 65 OF THE COMPANY'S VOTING SECURITIES MGM'S SHARES GIVE IT ABOUT A 175 VOTING STAKE PUBLIC SHAREHOLDERS' STAKE SHRANK TO 15 FROM 484 AS A RESULT OF THE RESTRUCTURING CAROLCO ALSO SAID IT NO LONGER HAS ANY OWNERSHIP INTEREST IN LIVE ENTERTAINMENT INC 9310210039 931021 PINNACLE WEST REVIVES COMMON DIVIDEND 3RDQUARTER NET ROSE PHOENIX ARIZ PINNACLE WEST CAPITAL CORP REINSTATED ITS COMMONSTOCK DIVIDEND AFTER A FOURYEAR HIATUS DECLARING A QUARTERLY DIVIDEND OF 20 CENTS A SHARE PAYABLE DEC 1 TO SHAREHOLDERS OF RECORD NOV 1 THE MOVE IS A MILESTONE IN PINNACLE WEST'S LENGTHY RESTRUCTURING WHICH BEGAN IN 1989 WHEN THE UTILITYHOLDING COMPANY'S DIVERSIFICATION PROGRAM RAN AGROUND WITH THE FOUNDERING OF ITS FORMER THRIFT UNIT AND OTHER WOES RICHARD SNELL WHO TOOK OVER AS CHAIRMAN AND CHIEF EXECUTIVE IN 1990 SAID THE COMPANY EXPECTS LONGTERM DEBT TO BE REDUCED TO 564 MILLION BY YEAR END COMPARED WITH A PEAK OF 12 BILLION IN 1990 ALSO PINNACLE WEST REPORTED NET INCOME OF 867 MILLION OR 99 CENTS A SHARE FOR THE THIRD QUARTER COMPARED WITH 853 MILLION OR 98 CENTS A SHARE A YEAR EARLIER REVENUE FROM OPERATIONS WAS 5346 MILLION COMPARED WITH 5263 MILLION IN THE 1992 QUARTER THE COMPANY SAID REFUELING ISSUES AT ITS UTILITY UNIT'S NUCLEAR OPERATIONS UNSEASONABLY WARM WEATHER AND OTHER FACTORS WILL LOWER THE COMPANY'S EARNINGS OUTLOOK FOR THE YEAR BUT IT DIDN'T QUANTIFY THE SHORTFALL FOR THE NINE MONTHS PINNACLE WEST REPORTED NET OF 1724 MILLION OR 198 A SHARE COMPARED WITH 1318 MILLION OR 151 A SHARE A YEAR EARLIER REVENUE FROM OPERATIONS WAS 132 BILLLION COMPARED WITH 128 BILLION FOR THE PRIORYEAR PERIOD THE RESULTS WERE RELEASED AFTER THE CLOSE OF TRADING PINNACLE WEST'S STOCK FELL 375 CENTS TO CLOSE AT 2375 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9310210038 931021 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN CELLULAR PHONES MAY HELP PRODUCTIVITY BUT PAYMENT FOR THEM VARIES MOVING INTO CELLULAR'S SECOND DECADE FIRMS SUCH AS ATLANTIC RICHFIELD IN LOS ANGELES LEASE PHONES TO AVOID OWNING OLD GOODS OTHERS SUCH AS COOPERS & LYBRAND IN BOSTON BARGAIN IN BULK OFTEN EMPLOYEES BUY THE PHONES AND CHARGE EXPENSE ACCOUNTS OR CLIENTS PER USE IN TEN YEARS THE PRICE OF A PHONE HAS DROPPED TO AROUND 100 FROM OVER 2000 BUT NOT ALL FIRMS HEED THE CALL IN CHICAGO BORGWARNER CORP'S WELLS FARGO ALARM SERVICES DISCOURAGES EMPLOYEES' CELLULAR USE AS TOO COSTLY BECAUSE PERCALL CHARGES REMAIN HIGH STILL THE ALARM FIRM URGES CLIENTS TO BUY CELLULAR PHONES AS BACKUPS TO SECURITY SYSTEMS MARRIOTT CORP NOTES THAT THE PHONES ARE ESSENTIAL IN ANY HOTEL CRISIS AND AETNA LIFE & CASUALTY'S INFORMATION TECHNOLOGY UNIT FINDS THEM A MUST IN DISASTERS LIKE HURRICANE ANDREW AND A PLUS IN EXTENDING THE NORMAL WORKDAY AETNA SUPPLIES PHONES TO ABOUT 7 OF ITS WORKERS MARRIOTT SAYS 1015 OF ITS WORKERS BUY CELLULAR PHONES A SURVEY FOR PACTEL CELLULAR IN CALIFORNIA SAYS ABOUT 11 OF EMPLOYEES HAVE CELLULAR PHONES MICROSOFT LOOKS HOME TO REINCORPORATE DUE TO BETTER DIRECTORLIABILITY LAWS THE REDMOND WASH SOFTWARE MAKER WANTS TO DITCH DELAWARE AS ITS PLACE OF INCORPORATION IN FAVOR OF THE EVERGREEN STATE SINCE 1987 WASHINGTON HAS TWICE AMENDED ITS CORPORATE LAW SO THAT THE HOME STATUTE NOW IS CLEARER AND BETTER ADDRESSES THE COMPANY'S CONCERNS ABOUT OFFICER AND DIRECTOR LIABILITY SAYS MICROSOFT'S PROXY THE MATTER IS UP FOR A VOTE AT THE ANNUAL MEETING NEXT WEEK WE ALSO LOOKED AROUND AT SOME OF OUR COMPETITORS WHO WERE INCORPORATED IN THEIR HOME STATES SAYS ROBERT ESHELMAN MICROSOFT'S ATTORNEY MEANWHILE DANIEL HAPKE JR HEAD OF THE AMERICAN CORPORATE COUNSEL ASSOCIATION SAYS FIRMS PREFER A VERY SPECIFIC STATE LAW THAT MAKES RISK AND THE NEED FOR ANY RISKMINIMIZING INSURANCE CLEAR MICROSOFT SAYS IT ISN'T IN ITS BEST INTEREST TO PAY HIGH INSURANCE PREMIUMS THAT CAN RANGE FROM 750000 TO 14 MILLION FOR A ONEYEAR POLICY FRANCHISE FEES CAN ALSO BE A NUISANCE DELAWARE MADE THE MOST OF IT WITH AN ANNUAL 150000 FEE SAYS MR ESHELMAN WASHINGTON CHARGES 59 TOLDYOUSO ECONOMISTS KEEP AN EYE ON POISON PILLS' ROLE IN '90S MERGERS LAST SPRING ECONOMISTS ROBERT COMMENT AND G WILLIAM SCHWERT WROTE THAT POISON PILLS AND ANTITAKEOVER LAWS DIDN'T SQUASH THE RUN OF '80S DEALS A GRIM ECONOMY DID NOW WITH MERGERS AGLOW AGAIN THE PILLS AND LAWS CREATE A NEW MODEL SAYS MR COMMENT EXPECT THE FIRST OFFER TO BE FRIENDLY BUT DON'T NECESSARILY EXPECT IT TO WIN MR COMMENT ADDS INITIAL TAKEOVER OFFERS WILL BE MORE POLITE NOT LESS COMMON BECAUSE OF THE NEW MEASURES THE ECONOMISTS SAY THE DEVICES ARE SIGNIFICANT BARGAINING CHIPS THAT CAN'T COMPLETELY SHUT OUT ANY ONE BIDDER AND THEY ENCOURAGE AN AUCTION ADDS MR SCHWERT NOW WHEN MR SCHWERT LECTURES ABOUT THEIR PAPER HE CAN BRING NEWS CLIPS TO BACK UP THE THEORY YOU DON'T OFTEN GET TO DO ACADEMIC RESEARCH IN REAL TIME HE ADDS SOME 87 OF ALL EXCHANGELISTED STOCKS HAVE A POISON PILL OR PROTECTIVE STATE STATUTE THE ECONOMISTS SAY PROCEED IN RUSSIAN OR ENGLISH AT A ROW OF CHASE MANHATTAN AUTOMATED TELLER MACHINES IN NEW YORK'S WORLD TRADE CENTER WHY NOT ENGLISH AND SPANISH OR CHINESE AS AT OTHER CHASE LOCATIONS THE ATMS HELP RUSSIAN IMMIGRANTS DRAW FUNDS DEPOSITED FOR THEM BY THE NEARBY NEW YORK ASSOCIATION FOR NEW AMERICANS A NONPROFIT IN RETURN WE MOVED ALL OUR ACCOUNTS TO CHASE IT SAYS TV SHOPPING CANNIBALIZES RETAIL STORES AND CATALOGS FIRST NEXT THE CHANNELS NIBBLE AT PRINT ADS SAYS WSL MARKETING IN NEW YORK DOWN THE ROAD INTERACTIVE TV THAT LETS VIEWERS TRY ON MERCHANDISE ARF ER AUTHOR CARTOONIST JENNIFER BERMAN JOINS THE GROWING CATEGORY OF DOG WRITERS HER BOOK PUBLISHED BY SIMON & SCHUSTER'S POCKET BOOKS DIVISION IS TITLED WHY DOGS ARE BETTER THAN MEN BROKERS TIP' BANKERS IN REFERRAL PROGRAMS WITHIN REGIONAL BROKERAGES SMALLER BROKERAGE FIRMS THAT WANT TO BEEF UP THEIR UNDERWRITING AND CORPORATE BANKING BUSINESS ENCOURAGE SALESPEOPLE TO STEER THEIR RETAIL CLIENTS TO THE INVESTMENT BANKERS' SIDE OF THE HOUSE IT'S GETTING MORE PREVALENT SAYS PERRIN LONG AN ANALYST AT FIRST OF MICHIGAN IN DETROIT WHICH RECENTLY HELD SUCH A PEP TALK BANKING SERVICES BRING HIGHER PROFITS AND RETURN BUSINESS HE SAYS IN THE PAST 18 MONTHS ADVEST INC IN HARTFORD CONN REALIZED SOME 275 MILLION IN NEW TRANSACTIONS SUCH AS INITIAL PUBLIC OFFERINGS THANKS TO THE REFERRAL PROGRAM BESIDES TALKS AND NEWSLETTER ITEMS ADVEST PUT AN EXECUTIVE IN CHARGE OF RESPONDING TO ALL BROKER IDEAS THE HARDEST PART IS SAYING NO' SAYS MURRAY BEACH HEAD OF CORPORATE FINANCE A BROKER IN FALL RIVER REELED IN THE BIGGEST DEAL IN FIRM HISTORY ADVEST SAYS THAT OF SOME 300 REFERRALS FROM BROKERS TO CORPORATE FINANCE ABOUT 20 TRANSACTIONS HAVE CLOSED SO FAR BRIEFS NOT THAT BERKELEY BERKELEY COLLEGES A TWOYEAR BUSINESS COLLEGE IN NEW YORK SENDS FORMAL INVITATIONS FOR THE PREMIERE SHOWING OF A VIDEO PROMOTING ITS NEW DEGREE IN PROFESSIONAL SALES SAFETY TIPS FROM THE AMERICAN COLLEGE OF PHYSICIANS TO MEMBERS TRAVELING TO A MIAMI BEACH MEETING INCLUDE THIS BIT OF ADVICE CONSIDER FLYING INTO FT LAUDERDALE 9310210037 931021 BUSINESS BRIEF IPALCO ENTERPRISES INC MAY SEEK TO DERAIL PSI RESOURCES MERGER WASHINGTON IPALCO ENTERPRISES INC WHICH IN AUGUST THREW IN THE TOWEL AFTER A FIVEMONTH HOSTILE BID FOR PSI RESOURCES INC FELL SHORT IS LAYING THE GROUNDWORK FOR POSSIBLE ATTEMPTS TO DERAIL PSI'S PLAN TO MERGE WITH CINCINNATI GAS & ELECTRIC CO IN A RECENT FILING WITH THE SECURITIES AND EXCHANGE COMMISSION IPALCO SEEKS APPROVAL OF MATERIAL BY WHICH IT COULD SOLICIT PROXIES FROM CG&E HOLDERS IN THE FILING IPALCO SAYS CG&E HOLDERS SHOULD VOTE AGAINST THE MERGER BECAUSE IT WOULD BE DILUTIVE TO THEIR HOLDINGS AND BECAUSE THE MERGER COULD FACE DIFFICULTIES WITH STATE REGULATORS WE HAVEN'T COMMENCED ANY SOLICITATION SAID AN IPALCO SPOKESWOMAN AND WE'VE NOT MADE A DECISION TO WE ARE SIMPLY PRESERVING OUR OPTIONS TO THAT END IPALCO SINCE AUGUST HAS MADE FILINGS WITH REGULATORS THAT COULD PERMIT IT TO CONTINUE ITS OPPOSITION OFFICIALS AT PSI AND CG&E COULDN'T BE REACHED NEARLY A YEAR AGO PLAINFIELD INDBASED PSI DISCLOSED PLANS TO MERGE WITH THE CINCINNATI UTILITY HOLDING COMPANY AND TO FORM A COMPANY KNOWN AS CINERGY BUT IPALCO BASED IN INDIANAPOLIS THEN LAUNCHED A RIVAL 173 BILLION BID FOR PSI IN A LATESUMMER PSI SHAREHOLDER MEETING HOWEVER IPALCO'S FIGHT TO ELECT ITS NOMINEES TO PSI'S BOARD FELL SHORT AND THE HOSTILE SUITOR WITHDREW ITS BID IPALCO MAINTAINED AT THE TIME THAT IT WOULD EXPLORE ALL OPTIONS GOING FORWARD THE CINERGY MERGER STILL REQUIRES APPROVAL FROM TWOTHIRDS OF CG&E'S HOLDERS AT A MEETING SCHEDULED FOR NOV 16 A NOV 9 MEETING FOR PSI HOLDERS REQUIRES ONLY A 50 APPROVAL 9310210036 931021 MONEYFUND YIELDS MOSTLY ROSE IN WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS GENERALLY ROSE IN THE LATEST WEEK TAXFREE FUND YIELDS DECLINED BUT CONTINUED TO BEAT THOSE ON TAXABLE FUNDS FOR TOPBRACKET INVESTORS IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS CREPT UP TO 268 FROM 267 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE AVERAGE TAXEXEMPT SEVENDAY COMPOUND YIELD FELL TO 2 FROM 212 ACCORDING TO MONEY FUND REPORT THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 313 FOR SOMEONE PAYING 36 IN TAXES AND TO 331 FOR SOMEONE PAYING 396 ASSETS OF 620 TAXABLE FUNDS THREE MORE THAN IN THE PREVIOUS WEEK ROSE BY 948 BILLION TO 47742 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACCOUNTED FOR 937 BILLION OF THE INCREASE WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE INCREASE IN ASSETS TO PROFITTAKING IN THE BOND MARKET MONDAY FOR INVESTORS WHO SOLD BONDS MONEY FUNDS ARE A PARKING PLACE HE SAID THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS INCHED UP TO 265 FROM 264 WHILE THE 30DAY SIMPLE YIELD REMAINED AT 265 THE 30DAY COMPOUND YIELD REMAINED AT 269 AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 63 DAYS ASSETS OF 328 TAXEXEMPT FUNDS ONE FEWER THAN THE PREVIOUS WEEK DECREASED BY 2028 MILLION TO 10418 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY REMAINED AT 68 DAYS 9310210035 931021 POLITICS & POLICY LARGER NATO IS SUPPORTED BY PRESIDENT BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL BUDAPEST JUGGLING THE COMPETING ANXIETIES OF RUSSIA AND EASTERN EUROPE THE CLINTON ADMINISTRATION IS CALLING FOR AN EXPANSION OF THE NORTH ATLANTIC TREATY ORGANIZATION WHILE FUDGING THE CRITERIA FOR MEMBERSHIP AND A TIME FRAME FOR ADMISSION OFFICIALS SAID THE PROPOSAL APPROVED BY PRESIDENT CLINTON THIS WEEK COULD OPEN THE DOOR TO FUTURE NATO MEMBERSHIP FOR ALL THE COUNTRIES IN EASTERN EUROPE AS WELL AS RUSSIA AND OTHER FORMER SOVIET REPUBLICS FOR THE NEAR TERM THE US IS ALSO PROPOSING THAT NATO SEEK CLOSER OPERATIONAL LINKS INCLUDING TRAINING EXERCISES WITH FORMER WARSAW PACT MILITARIES WITH AN EYE TOWARD FUTURE JOINTPEACEKEEPING OPERATIONS WHILE CLEARLY INTENDED TO PLEASE MANY DIFFERENT CONSTITUENCIES MOST NOTABLY EASTERN EUROPE'S NERVOUS NEW DEMOCRACIES THE US PROPOSAL COULD END UP IRRITATING SEVERAL RUSSIAN PRESIDENT BORIS YELTSIN RECENTLY SENT A LETTER TO PRESIDENT CLINTON SAYING THAT HE WOULD OPPOSE ANY EXPANSION OF NATO TO EASTERN EUROPE UNLESS RUSSIA WAS ADMITTED AT THE SAME TIME AND ALTHOUGH IT COULD BE YEARS BEFORE ANY MEMBERS ARE ADDED TO THE ALLIANCE RUSSIA WOULD ALMOST CERTAINLY BE FARTHER BACK IN THE QUEUE THAN MORE FULLY DEVELOPED DEMOCRACIES SUCH AS HUNGARY POLAND AND THE CZECH REPUBLIC SEVERAL OF AMERICA'S CLOSEST EUROPEAN ALLIES MEANWHILE HAVE EXPRESSED CONCERN THAT BROADENING NATO'S MEMBERSHIP WOULD DILUTE THE ALLIANCE'S EFFECTIVENESS WITH A NATO SUMMIT PLANNED FOR JANUARY AT PRESIDENT CLINTON'S SUGGESTION THE US NEEDS TO COME UP WITH SOME NEW IDEAS TO REVIVE THE ALLIANCE WHICH CRITICS SAY HAS FAILED TO ADAPT TO THE NEW CHALLENGES OF THE POSTCOLD WAR WORLD A SENIOR STATE DEPARTMENT OFFICIAL TRAVELING IN EUROPE WITH SECRETARY OF STATE WARREN CHRISTOPHER SAID THE US HOPED THE JANUARY SUMMIT WOULD APPROVE THE PROPOSAL WHICH WOULD QUALITATIVELY TRANSFORM NATO'S RELATIONS WITH THE NEW DEMOCRACIES OF THE EAST THE US IS ALSO PROPOSING SEVERAL POLICIES THAT IT SAYS WILL IMPROVE NATO'S PERFORMANCE IN PEACEKEEPING AND CRISIS MANAGEMENT WHILE LAYING THE GROUNDWORK FOR AN EXPANSION OF ITS MEMBERSHIP SECRETARY CHRISTOPHER WILL DISCUSS THE US PROPOSAL WITH PRESIDENT YELTSIN IN A MEETING TOMORROW IN MOSCOW WHERE HE IS EXPECTED TO EMPHASIZE THE INCLUSIONARY ASPECTS OF THE PROPOSAL THE IDEA IS EXPECTED TO RECEIVE A MUCH WARMER RECEPTION TODAY WHEN MR CHRISTOPHER MEETS WITH HUNGARY'S POLITICAL LEADERSHIP 9310210033 931021 WHAT'S NEWS BUSINESS AND FINANCE AMERICAN AIR'S PARENT POSTED A THIRDQUARTER PROFIT REFLECTING HIGHER AIR FARES AND LOWER COSTS WHILE USAIR GROUP ANNOUNCED ANOTHER BIG LOSS THE COMBINATION OF LOW FUEL COSTS A SLIGHT PICKUP IN THE ECONOMY AND COSTCUTTING PROGRAMS ARE EXPECTED TO PUT THE AIRLINE INDUSTRY IN THE BLACK FOR THE FIRST TIME IN TWO YEARS DIGITAL EQUIPMENT REPORTED A WIDERTHANEXPECTED LOSS AND A 9 DECLINE IN REVENUE FOR ITS FIRST QUARTER RAISING THE PROSPECT OF ADDITIONAL WORKFORCE CUTS AND WRITEDOWNS CHRYSLER'S DEBT WAS UPGRADED AGAIN BY MOODY'S AND THE CAR MAKER WILL ANNOUNCE PLANS TO LAUNCH EUROPEAN PRODUCTION NEXT YEAR OF A SECOND VEHICLE ITS JEEP GRAND CHEROKEE MICROSOFT'S NET ROSE 14 IN THE LATEST QUARTER SIGNALING THE FIRM'S ERA OF FAST GROWTH MAY BE WINDING DOWN CLINTON OFFICIALS SCALED BACK A TAX PROPOSAL TO PAY FOR NAFTA ONE DAY AFTER DETAILING THE PLAN TO CONGRESS WMX TECHNOLOGIES' STOCK PLUNGED 17 AS INVESTORS REACTED TO DISAPPOINTING THIRDQUARTER RESULTS AND CURTAILED GROWTH EXPECTATIONS BY MANAGEMENT THE WASTE MANAGEMENT FIRM POSTED A LOSS OF 1272 MILLION FOR THE QUARTER CIRCUS CIRCUS SAID IT EXPECTS LOWER THIRDQUARTER EARNINGS TRIGGERING A BROAD SELLOFF IN CASINO STOCKS CIRCUS'S STOCK FELL 525 OR 12 TO 39125 QVC DELIVERED A PACKAGE OF INFORMATION TO PARAMOUNT ABOUT ITS 95 BILLION ACQUISITION BID AND PREPARED A SERIES OF POSSIBLE MOVES AIMED AT PRESSURING THE ENTERTAINMENT AND PUBLISHING GIANT TO BEGIN TAKEOVER TALKS A FEDERAL PROBE UNCOVERED A CALIFORNIA OPERATION THAT SUPPLIED ALLEGEDLY SUBSTANDARD ENGINE PARTS FOR AIRLINES CIVILIAN HELICOPTERS AND US MILITARY CARGO JETS SINCE 1988 BANKAMERICA REPORTED A SLIGHT GAIN IN THIRDQUARTER EARNINGS REFLECTING CALIFORNIA'S DEPRESSED ECONOMY WHILE REPUBLIC NEW YORK AND FLEET FINANCIAL POSTED STRONG RESULTS KEMPER FINANCIAL WILL PAY OVER 10 MILLION TO SETTLE REGULATORY ACTIONS AND A RELATED SUIT INVOLVING FUTURES TRADES IN PUBLIC MUTUAL FUNDS IT MANAGED GENERAL DYNAMICS' NET FELL 39 IN THE THIRD QUARTER DESPITE HIGHER PROFIT FROM CONTINUING OPERATIONS NORTHROP RETURNED TO PROFIT AFTER CUTTING LOSS PROVISIONS ON PENTAGON CONTRACTS TEXACO'S NET SANK 55 AND OCCIDENTAL PETROLEUM'S PROFIT FELL 15 IN THE THIRD QUARTER AMID SHARPLY LOWER OIL PRICES AND ONETIME CHARGES GTE SHOOK UP SENIOR MANAGEMENT AND THE PHONE COMPANY SAID IT INTENDS TO ENTER THE MULTIMEDIA ARENA TENNECO'S NET MORE THAN DOUBLED IN THE THIRD QUARTER REFLECTING COSTCUTTING AND INVENTORY REDUCTIONS UK CABLETV NETWORKS ARE CONSIDERING CUTTING PRICES OF CABLETELEPHONE SERVICES A MOVE THAT WOULD INTENSIFY A BATTLE WITH BRITISH TELECOM STOCKS VOLUME 305658120 SHARES DOW JONES INDUSTRIALS 364510 UP 978 TRANSPORTATION 166831 UP 342 UTILITIES 24328 UNCHANGED BONDS LEHMAN BROTHERS TREASURY INDEX 574203 UP 1089 COMMODITIES OIL 1824 A BARREL UP 18 CENTS DOW JONES FUTURES INDEX 12833 UP 042 SPOT INDEX 11891 UP 037 DOLLAR 10730 YEN UP 010 16395 MARKS OFF 00014 9310210032 931020 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9310210031 931021 JURORS SHOW SEEING IS NOT BELIEVING BY PHILIP WASSERMAN THE DECISION OF THE JURY IN LOS ANGELES TO ACQUIT DAMIAN WILLIAMS AND HENRY WATSON OF THE MOST SERIOUS CHARGES AGAINST THEM STEMMING FROM THEIR BEATING OF REGINALD DENNY HIGHLIGHTS THE SHORTCOMINGS OF USING VIDEOTAPE AS THE BASIS OF A PROSECUTION LIKE THE BRUTAL VIDEOTAPE IN THE FIRST RODNEY KING TRIAL THE HORRIFICALLY COMPELLING TAPE IN THE REGINALD DENNY TRIAL WAS UNABLE TO PROVIDE THE PROSECUTION WITH THE EVIDENCE IT NEEDED FOR CONVICTIONS ON THE MOST SERIOUS CHARGES THAT SHOULDN'T COME AS A SURPRISE IN SEVERAL HIGHPROFILE CASES IN THE PAST FEW YEARS VIDEOTAPE HAS BEEN NO SUBSTITUTE FOR COMPELLING EYEWITNESS TESTIMONY THE JURORS APPARENTLY HAD NO PROBLEM DECIDING THAT MESSRS WILLIAMS AND WATSON WERE THE MEN ON THE TAPE BUT THE SILENT VIDEO SCENES SHOT FROM THE GROUND AND THE AIR WERE NOT ENOUGH TO CONVINCE THE JURY THAT THE DEFENDANTS HAD THE SPECIFIC INTENT TO COMMIT THE MOST SERIOUS CRIMES THEY WERE CHARGED WITH ULTIMATELY THE 47 MINUTES OF VIDEOTAPE COULD SHOW JURORS ONLY WHAT THE DEFENDANTS WERE DOING NOT WHY AS A RESULT THE POTENTIAL FELONY CONVICTIONS BECAME MISDEMEANOR CONVICTIONS AND ACQUITTALS THE VIDEOTAPE OF THE BEATING TOOK ON INCREASING IMPORTANCE AS EYEWITNESSES FROM SOUTH CENTRAL LOS ANGELES WERE RELUCTANT TO COME FORWARD AND VICTIMS DID NOT REMEMBER WHO HAD ATTACKED THEM ONLY ONE PROSECUTION EYEWITNESS WAS PRESENT ON THE GROUND AT FLORENCE AND NORMANDIE WHEN MR DENNY WAS DRAGGED FROM HIS TRUCK AND BEATEN THE PROSECUTION'S TWO OTHER EYEWITNESSES WERE HOVERING IN A HELICOPTER ABOVE HOW COULD ANYONE NOT BELIEVE THE DEFENDANTS COMMITTED THE CRIMES THEY WERE ACCUSED OF YOU COULD SEE IT FOR YOURSELF RIGHT THERE ON VIDEOTAPE AS ONE LOCAL NEWSPAPER EDITORIALIZED JUSTICE IS SUPPOSED TO BE BLIND BUT NOT THAT BLIND BUT WHEN YOU RELY ON VIDEOTAPE TO PROSECUTE YOU TAKE YOUR CHANCES ASK THE PROSECUTION IN THE JOHN DELOREAN TRIAL THE MARION BARRY TRIAL AND THE FIRST RODNEY KING BEATING TRIAL ALL WERE DEFEATED BY WHAT THEY MUST HAVE THOUGHT WAS THEIR BEST EVIDENCE IN THE DELOREAN TRIAL FOR EXAMPLE PROSECUTORS THOUGHT THEY HAD A SLAM DUNK BECAUSE VIDEOTAPE SHOWED DELOREAN PROCLAIMING IT'S BETTER THAN GOLD AS HE STARED AT A BRIEFCASE FULL OF COCAINE PROSECUTORS BELIEVED THIS SHOWED BEYOND A REASONABLE DOUBT THAT DELOREAN WAS GUILTY THE JURORS THOUGHT IT SHOWED ENTRAPMENT THE PROSECUTION NEVER GUESSED IN THE DENNY AND KING TRIALS EXPERTS WERE TROTTED OUT TO DESCRIBE THE VIDEOTAPE WHAT THEY SAW AND WHAT IT MEANT JURORS HOWEVER ARE THEIR OWN EXPERTS THEY'VE GROWN UP WATCHING THOUSANDS OF HOURS OF TELEVISION EVERYTHING FROM SITCOMS TO ASSASSINATION CAMCORDERS HAVE BECOME A NECESSITY TO RECORD LIFE'S SPECIAL MOMENTS AND SO IN THE FIRST KING TRIAL ONE TELEVISION VIEWER'S BEATING TURNS OUT TO BE ONE JUROR'S REASONABLE USE OF FORCE IN CLOSING ARGUMENTS IN THE DENNY CASE PROSECUTOR JANET MOORE DESCRIBED VIDEO OF A BRICK SMASHING INTO REGINALD DENNY'S HEAD AS BEING BURNED IN OUR BRAINS SHE ASKED FOR A GUILTY VERDICT OF ATTEMPTED MURDER BUT ON VIDEOTAPE THE BRICK CRUMBLED INTO REASONABLE DOUBT MS MOORE AND COPROSECUTOR LARRY MORRISON PUT THEIR BEST SPIN ON THE TAPE BUT IT WAS NO SUBSTITUTE FOR GOOD OLDFASHIONED EYEWITNESS TESTIMONY WITH THE PROLIFERATION OF CAMCORDERS IN THE HANDS OF CITIZENS EVERYWHERE WE'RE BOUND TO SEE MORE MORE TERRIBLE CRIMES CAPTURED ON VIDEOTAPE BUT PROSECUTORS NEED TO LEARN THAT IN CRIMES WHERE INTENT AND MOTIVATION WILL DECIDE THE VERDICT TAPE ISN'T ALWAYS GOING TO BE ENOUGH TO GET A CONVICTION MR WASSERMAN IS A FREELANCE PRODUCER FOR COURT TV IN LOS ANGELES AND HAS WORKED IN BROADCAST NEWS FOR 17 YEARS 9310210030 931021 BUSINESS BRIEF VF CORP COMPANY POSTS FLAT NET FOR QUARTER RAISES DIVIDEND NOTING WEAKER SALES IN ITS GIRBAUD JEANS AND BASSETTWALKER FLEECE WEAR DIVISIONS VF CORP SAID ITS THIRDQUARTER EARNINGS WERE FLAT FROM A YEAR AGO THE APPAREL MAKER ALSO RAISED ITS QUARTERLY DIVIDEND BY 6 VF POSTED A THIRDQUARTER NET INCOME OF 768 MILLION OR 118 A SHARE COMPARED WITH 756 MILLION OR 129 A SHARE A YEAR EARLIER WHEN THE WYOMISSING PA COMPANY HAD 97 FEWER SHARES SALES ROSE 2 TO 115 BILLION FROM 113 BILLION THE DIRECTORS VOTED TO INCREASE THE COMPANY'S DIVIDEND TO 32 CENTS A SHARE FROM 30 CENTS A SHARE PAYABLE DEC 20 TO SHAREHOLDERS OF RECORD ON DEC 10 THE BOARD ALSO INCREASED ITS MEMBERSHIP TO 12 DIRECTORS ELECTING MACKEY J MCDONALD 47 YEARS OLD WHO WAS NAMED VF'S PRESIDENT AND CHIEF OPERATING OFFICER ON SEPT 21 VF PREDICTED THAT ITS FOURTHQUARTER NET INCOME WILL BE FLAT FROM A YEAR AGO 9310210029 931021 TECHNOLOGY WELLCOME UNIT SAYS CLINICAL TRIALS SUPPORT NEW SHINGLES DRUG RESEARCH TRIANGLE PARK NC BURROUGHS WELLCOME CO SAID A CLINICAL TRIAL FOUND THAT A NEW DRUG AGAINST THE PAINFUL SKIN AILMENT SHINGLES WAS MORE EFFECTIVE THAN EXISTING TREATMENT THE DRUG COMPANY SAID THE DRUG CALLED VALACICLOVIR SHORTENED BY ONE OR TWO WEEKS THE DURATION OF PAIN FROM THE INITIAL SHINGLES OUTBREAK WHEN COMPARED WITH ACYCLOVIR THE MEDICAION MOST FREQUENTLY USED AGAINST THE AILMENT SHINGLES IS A SEVERE RASHLIKE INFLAMMATION CAUSED BY THE REACTIVATION OF THE CHICKENPOX VIRUS HIDDEN IN NERVES SINCE A CHILDHOOD ATTACK THE RASH CAN DISAPPEAR IN A FEW WEEKS BUT PAIN CAN PERSIST FOR MONTHS OR YEARS THE CLINICAL TRIAL OF THE NEW DRUG INVOLVED MORE THAN 1100 OTHERWISE HEALTHY ADULTS WITH SHINGLES SAID KARL BEUTNER ASSISTANT CLINICAL PROFESSOR OF DERMATOLOGY AT THE UNIVERSITY OF CALIFORNIA AT SAN FRANCISCO AND ONE OF THE PRINCIPAL INVESTIGATORS HE SAID THE PATIENTS WHO RECEIVED VALACICLOVIR GOT RID OF SHINGLES PAIN WITHIN 38 AND 44 DAYS COMPARED WITH 51 DAYS FOR THOSE WHO TOOK ACYCLOVIR WHICH BURROUGHS WELLCOME SELLS UNDER THE BRAND NAME ZOVIRAX THE VALACICOLVIR RECIPIENTS WERE GIVEN THE MEDICINE ONLY THREE TIMES DAILY COMPARED WITH FIVE TIMES DAILY FOR THE PATIENTS WHO RECEIVED ACYCLOVIR BURROUGHS WELLCOME SAID VALACIVOLVIR WHICH IS A MODIFICATION OF ACYCLOVIR MAY BE MORE EFFECTIVE BECAUSE IT IS MORE RAPIDLY AND EXTENSIVELY ABSORBED BY THE BLOOD THAN ACYCLOVIR BURROUGHS WELLCOME THE US UNIT OF THE BRITISH DRUG COMPANY WELLCOME PLC WILL APPLY NEXT YEAR TO THE FOOD AND DRUG ADMINISTRATION FOR APPROVAL TO SELL THE DRUG UNDER THE BRAND NAME VALTREX 9310210028 931021 BUSINESS BRIEF STANLEY WORKS TOOL MAKER'S 3RDPERIOD NET FELL 2 ON LOWER MARGINS STANLEY WORKS POSTED A 2 DROP IN THIRDQUARTER NET INCOME ON LOWER GROSS MARGINS AND INCREASED TAXES UNDER THE NEW FEDERAL TAX LAW FOR THE QUARTER ENDED OCT2 NET INCOME FOR THE NEW BRITAIN CONN MANUFACTURER OF HARDWARE AND TOOLS WAS 25 MILLION OR 56 CENTS A SHARE DOWN FROM 254 MILLION OR 56 CENTS A SHARE THE YEAR EARLIER SALES ROSE 5 TO 576 MILLION SLIPPAGE IN GROSS MARGINS TO 31 FROM 34 WEIGHED ON EARNINGS AS DID STARTUP COSTS ASSOCIATED WITH TWO NEW BUSINESSES AND LOSSES STEMMING FROM CURRENCY FLUCTUATIONS IN OVERSEAS MARKETS STANLEY SAID EARNINGS WOULD HAVE BEEN 7 HIGHER WITHOUT THE HIGHER US TAX RATES STANLEY ADDED DUFF & PHELPS ANALYST ROBERT MCCARTHY JR SAID STRONG PERFORMANCE IN STANLEY'S CORE BUSINESSES WAS BEHIND A SURGE IN THE COMPANY'S SHARES YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE STANLEY SHARES ROSE 2125 OR 54 TO CLOSE AT 4150 9310210027 931021 MARKETING & MEDIA BRITISH ROCK STAR WINS EC RIGHTS IN GERMANY LUXEMBOURG REUTER THE EUROPEAN COURT OF JUSTICE RULED THAT BRITISH ROCK STAR PHIL COLLINS WAS ENTITLED TO STOP A GERMAN RECORD COMPANY FROM SELLING UNAUTHORIZED RECORDINGS OF HIS WORKS THE EUROPEAN COMMUNITY'S HIGHEST COURT SAID EC TREATY RULES ON NONDISCRIMINATION MEANT MR COLLINS WAS ENTITLED TO THE SAME PROTECTION GRANTED TO GERMAN PERFORMERS UNDER COPYRIGHT LAW IN GERMANY THE COURT OF JUSTICE WAS ASKED TO SETTLE THE CASE BY A GERMAN COURT WHICH HAD BEEN ASKED BY MR COLLINS TO ALLOW SEIZURE OF COPIES OF LIVE AND ALIVE AN UNAUTHORIZED RECORDING OF ONE OF HIS CONCERTS IN CALIFORNIA IN 1983 BY RECORD COMPANY IMTRAT HANDELSGESELLSCHAFT THE RULING MEANS THAT MR COLLINS CAN BAR SALES OF THE UNAUTHORIZED RECORDINGS IN GERMANY THE LUXEMBOURGBASED COURT SAID GERMAN LAW WOULD HAVE ALLOWED A GERMAN ARTIST TO PREVENT THE SALES OF BOOTLEGGED RECORDINGS AND THAT THE EC TREATY OBLIGED A COUNTRY TO EXTEND THIS TREATMENT TO ALL EC CITIZENS 9310210026 931021 BUSINESS BRIEF PHARMACEUTICAL RESOURCES INC APPELLATE COURT REINSTATES CERTAIN CLAIMS IN MYLAN SUIT PHARMACEUTICAL RESOURCES INC SAID IT LEARNED YESTERDAY THAT A FEDERAL APPELLATE COURT REINSTATED A LAWSUIT BROUGHT AGAINST THE COMPANY BY MYLAN LABORATORIES INC THE DECISION BY THE APPELLATE COURT IN BALTIMORE REINSTATED CERTAIN CLAIMS MYLAN MADE AGAINST PHARMACEUTICAL RESOURCES UNITS PAR PHARMACEUTICAL AND QUAD PHARMACEUTICALS IN A COURT CASE FILED IN 1989 PHARMACEUTICAL RESOURCES BASED IN SPRING VALLEY NY MOVED FOR AND WON A DISMISSAL OF THE CASE IN FEDERAL DISTRICT COURT IN MARYLAND THE APPELLATE COURT DECISION ESSENTIALLY REVERSED THAT DISMISSAL THE APPELLATE DECISION DID AGREE WITH THE DISTRICT COURT IN DISMISSING MYLAN'S CHARGES THAT THE UNITS CONSPIRED WITH OTHER DRUG COMPANIES TO INJURE MYLAN WHICH COULDN'T BE REACHED FOR COMMENT IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY MYLAN SHARES ROSE 1625 TO 31125 PHARMACEUTICAL RESOURCES FELL 625 CENTS TO 13625 9310210025 931021 AFTER THE FLOOD MIDWEST FARMERS REAP THEIR SHRUNKEN CROPS THOSE WORTH PICKING DESPITE POOR YIELDS PRICES STAY LOW THANKS TO SHIFT IN GLOBAL GRAIN MARKET BURNING FIELDS IN MINNESOTA BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL THIEF RIVER FALLS MINN AMERICAN AGRICULTURE'S WETTEST YEAR IS ENDING IN FIRE CLINT BAUER IS PUTTING A TORCH TO 600 ACRES OF WHEAT TOO MOLDY TO HARVEST WE'VE NEVER DONE ANYTHING LIKE THIS BEFORE SAYS THE 36YEAROLD FARMER BLINKING AS SMOKE RISES OFF THE SCORCHED EARTH THERE'S NOTHING TO SAVE HUNDREDS OF ACRES ON THREE NEIGHBORING FARMS ARE ABLAZE BY DUSK RAGGED ORANGE LINES ARE MARCHING ACROSS FIELDS AS FAR NORTH AS THE CANADIAN BORDER 70 MILES AWAY THE GRAY HAZE IN THE SKY SMOTHERS THE LOW SUN THIS IS THE SAD ENDING FOR SOME MIDWEST FARMERS DRENCHED BY THE SUMMER'S RECORD RAINS THEIR FIELDS NEVER HAD THE CHANCE TO DRY OUT AND DEVELOP PROPERLY NOW COLD TEMPERATURES ARE FINISHING THE GROWING SEASON AS FAR SOUTH AS MISSOURI SOME FARMERS ARE PLOWING UNDER FIELDS OF CORN AND SOYBEANS THAT ARE TOO SCRAWNY TO HARVEST BY SOME ESTIMATES ROUGHLY TWO MILLION ACRES OF CROPS ARE BEING RAZED MOST OF THESE FARMERS HAVE NEVER DESTROYED SO MUCH OF THEIR OWN CROP AND WORSE GLOBAL MARKETS MORE POWERFUL THAN ANY FLOOD ARE MAKING IT HARDER FOR THEM TO SNAP BACK FROM NATURAL DISASTER WHAT IS MISSING HERE IS THE SHARP RISE IN GRAIN PRICES THAT USED TO ACCOMPANY CROP FAILURE WHEN US CORN FARMERS WENT INTO THE FIELDS IN SEPTEMBER 1992 TO HARVEST A RECORD 948BILLIONBUSHEL CROP THE PRICE IN CENTRAL ILLINOIS WAS 215 A BUSHEL LAST MONTH THE PRICE WAS 221 JUST 28 HIGHER EVEN THOUGH THE US CORN HARVEST IS EXPECTED TO BE DOWN 252 BILLION BUSHELS THAT DROP IS THE EQUIVALENT OF PLOWING UNDER LAST YEAR'S CORN CROP IN IOWA AND OHIO IT'S SCARY THAT WE'RE SEEING LOWER CROPS AND LOW PRICES AT THE SAME TIME SAYS ROBERT GRODE A BRISTOL SD FARMER WHO BURNED 100 ACRES OF WHEAT AND WORRIES ABOUT RAISING THE 35000 HE NEEDS TO PLANT NEXT YEAR'S CROPS I GUESS WHAT HAPPENS IN SOUTH DAKOTA DOESN'T MATTER MUCH ANYMORE THE AGRICULTURE DEPARTMENT PROJECTS THE US SHARE OF THE WORLD CORN EXPORTS WILL SLIP TO 647 DURING THE YEAR ENDING SEPTEMBER 1994 FROM 702 IN THE CROP YEAR JUST ENDED WHILE AMERICA'S SHARE OF WORLD SOYBEAN TRADE SHRINKS TO A RECORD LOW OF 60 FROM 71 IN WHEAT WHICH IS GENERALLY HARVESTED EARLIER THE US SHARE IS EXPECTED TO DROP TO 305 IN THE YEAR ENDING JUNE 1994 FROM 339 IN THE PREVIOUS YEAR THAT MEANS WORLD SUPPLIES NOT DOMESTIC CONDITIONS ARE INCREASINGLY DETERMINING US GRAIN PRICES SOME ECONOMISTS FIGURE THIS YEAR'S US SOYBEAN CROP EXPECTED TO BE 14 SMALLER THAN LAST YEAR'S WOULD HAVE FETCHED 30 CENTS MORE A BUSHEL WHEN AMERICA WAS MORE DOMINANT IN WORLD MARKETS IN THE 1970S THE ANEMIC REACTION OF GRAIN PRICES IS WHY THE CROP DISASTER ISN'T HAVING MUCH EFFECT ON THE NATIONAL ECONOMY BEFORE THE HEAVY SUMMER RAINS THE AGRICULTURE DEPARTMENT EXPECTED FOOD PRICES TO RISE AS MUCH AS 3 THIS YEAR NOW THE DEPARTMENT IS FOCUSING ON 2 EVEN THOUGH IT EXPECTS PRODUCTION OF THE NATION'S BIGGEST CROP CORN TO PLUNGE 27 TO 696 BILLION BUSHELS FROM LAST YEAR'S RECORD HARVEST FROM A MIDWEST VANTAGE POINT THOUGH THE MISSISSIPPI AND MISSOURI RIVERS APPEAR TO HAVE TURNED INTO AN ECONOMIC MOAT BETWEEN THE RIVERS WHERE MANY FARMERS RECEIVED TWICE THEIR NORMAL SUMMER RAINFALL LINES ARE FORMING AT GOVERNMENT OFFICES FOR DISASTER AID BANKERS ARE PREPARING FOR THE BIGGEST WAVE OF SOUR LOANS SINCE THE MID1980S DEBT CRISIS BUSINESSES IN MANY FARM TOWNS ARE RETRENCHING AS SALES OF EVERYTHING FROM CARS AND LUMBER TO CLOTHES AND TRACTOR TIRES SOFTEN SOME COUNTY GOVERNMENTS ARE CUTTING BUDGETS OUTSIDE THIS WATERY WALL HOWEVER THE FARM BELT LOOKS MUCH DIFFERENT THE EXTRA RAIN THAT FELL ON THE USUALLY ARID WESTERN DAKOTAS GENERATED A BUMPER WHEAT CROP THERE AND THE STORMS RAN OUT OF STEAM BY THE TIME THEY REACHED CENTRAL ILLINOIS AND INDIANA WHERE BUSINESS IS BOOMING NEAR FRANKFORT IND TERRY W MYERS PLANS FOR A FLORIDA GOLFING VACATION AS HE STEERS A LUMBERING RED COMBINE THROUGH A FIELD CHOKED WITH SOYBEANS WITH EACH ACRE 55 BUSHELS OF THE BUFFCOLORED CROP SPILL INTO A BIN BEHIND HIM AT THAT BOUNTIFUL RATE THE 52YEAROLD FARMER FIGURES HE CAN AFFORD TO TRADE FOR A NEW TRACTOR AND GIVE HIMSELF A RAISE THIS SURE IS GOING TO BE ONE OF OUR BETTER CROPS HE SAYS IN PART BECAUSE OF THE BIG HARVESTS INDIANA NET FARM INCOME IS EXPECTED TO CLIMB 37 TO ROUGHLY 1 BILLION THIS YEAR REALESTATE PRICES ARE BUBBLING FULLERTON EQUIPMENT INC IN FRANKFORT HAS SOLD 12 NEW AND USED COMBINES SO FAR THIS YEAR THREE MORE THAN IN ALL OF 1992 AND THE BUSIEST SEASON WILL COME IN A FEW WEEKS AFTER FARMERS FINISH HARVESTING A SOYBEAN CROP THAT IS EXPECTED TO BE 18 LARGER THAN LAST YEAR IN INDIANA FARMEQUIPMENT SALES THROUGHOUT INDIANA ARE THE STRONGEST IN 15 YEARS AND BUSINESS ALSO IS BRISK IN ILLINOIS WHERE THE PERACRE SOYBEAN YIELD IS A RECORD THAT HELPS EXPLAIN WHY NATIONWIDE UNIT SALES OF TRACTORS HAVE RISEN 102 THROUGH SEPTEMBER COMPARED WITH THE SAME 1992 PERIOD WE HAVEN'T SEEN EXTREMES LIKE THIS BEFORE SAYS ABNER WOMACK A UNIVERSITY OF MISSOURI AGRICULTURAL ECONOMIST WHAT IS HAPPENING IS WORSE THAN THE 1988 DROUGHT IT COULD TAKE SOME PLACES FIVE YEARS TO RECOVER THE IOWA CORN CROP IS EXPECTED TO DROP BY 40 AND SOYBEANS BY 24 FROM LAST YEAR THE PRICE TAG FOR THAT AND PHYSICAL FARM DAMAGE ABOUT 14 BILLION IN MINNESOTA TRACTOR DEALERS FIGURE 10 OF THEIR NUMBER WON'T PULL THROUGH NORTH DAKOTA POTENTIALLY FACES A 500 MILLION CROP LOSS THE CORN CROP IS DOWN 46 IN MISSOURI WHERE 147 MILLION ACRES WERE WASHED OUT MANY RIVER LEVEES PROBABLY CAN'T BE REPAIRED IN TIME FOR THE SPRING FLOODS AND SOUTH DAKOTA THE STATE MOST DEPENDENT ON FARMING MIGHT LOSE MORE THAN ONETHIRD OF THE VALUE OF ITS MAJOR CROPS IN ADDITION TO ROUGHLY 7 BILLION IN AGRICULTURAL LOSSES THE NINE MIDWEST STATES ALONG THE MISSISSIPPI AND MISSOURI RIVERS SUSTAINED AN ESTIMATED 5 BILLION OF PROPERTY LOSSES AND OTHER COSTS THE FLOODS KILLED 47 PEOPLE DAMAGED 55000 HOMES SWAMPED 500 MILES OF RAILROAD TRACK AND IDLED THE BARGE INDUSTRY FOR TWO MONTHS ACCORDING TO THE FEDERAL RESERVE BANK OF CHICAGO ABOUT 10 OF THE US POPULATION LIVES IN COUNTIES HIT BY FLOODS INSIDE THE MOAT SOME FARMS LOOK LIKE A WAR ZONE AROUND THIEF RIVER FALLS TANKLIKE COMBINES ARE PLODDING ACROSS SOGGY FIELDS DESPERATE TO HARVEST A WHEAT CROP SOME FARMERS ARE REPLACING THE TIRES ON THEIR EQUIPMENT WITH 10000 STEEL TRACKS SO THEY CAN NAVIGATE THE MUD THE US CORN HARVEST IS LAGGING NORMALLY HALF THE CROP IS IN BY THIS DATE BUT THIS YEAR ONLY 22 OF IT IS ON A SMALL FARM OUTSIDE WEBSTER SD A CANNON BLASTS RATTLING THE WINDOWS OF A SMALL MESSY HOUSE AND SHAKING SUNFLOWER PLANTS BOWED UNDER A HEAVY RAIN WATCH YOUR HEAD SHOUTS EDDIE HINZE WHO RIGGED THE PROPANEFUELED CANNON TO FIRE EVERY 50 SECONDS TO SCARE AWAY THE BLACKBIRDS RAVAGING HIS CROPS THE FORMER TRUCK DRIVER WHO IS 51 BEGAN RENTING ABOUT 280 ACRES THIS YEAR TO MAKE THE 80ACRE GRAIN FARM HE OWNS LARGE ENOUGH TO SUPPORT HIM BUT HIS FEDERALLY SUBSIDIZED CROP INSURANCE DOESN'T COVER THE SOYBEAN ACREAGE THAT RAIN PREVENTED HIM FROM PLANTING AND THE POLICY WILL SCARCELY COVER THE DAMAGE TO THE SUNFLOWER FIELD TAPPING ON HIS CALCULATOR MR HINZE FLINCHES AT A BOOM LOSES HIS PLACE AND STARTS AGAIN HE FIGURES HE LOST 9000 THIS YEAR WHICH LEAVES HIM SHORT THE 27000 HE WILL NEED NEXT SPRING FOR SEED CHEMICALS FUEL AND OTHER EXPENSES I DON'T KNOW WHAT IS GOING HAPPEN TO ME THIS WINTER SAYS MR HINZE BUT I WANT TO KEEP FARMING THREE TIMES AS MUCH RAIN AS NORMAL FELL IN JULY ON WEBSTER A TWOSTOPLIGHT TOWN WHERE A POLICE OFFICER STROLLS MAIN STREET AT DUSK CHECKING SHOP DOORS CAR SALES DROPPED 15 AT MIDWEST MOTORS AS A SALMONCOLORED MOLD SPREAD THROUGH THE FLOWERING WHEAT FIELDS WEAKENING THE PLANTS AND CONTAMINATING THE KERNELS CORN AND SOYBEANS MATURED SO SLOWLY DURING THE 11INCH DELUGE THAT SOME FIELDS WERE FOUR WEEKS BEHIND SCHEDULE WHEN THE GROWING SEASON ENDED THIS IS THE FINAL STRAW FOR THE TWO BROTHERSINLAW THAT OWN A FARMEQUIPMENT DEALERSHIP THEY HAVEN'T SOLD A NEW COMBINE ALL YEAR AND WITHOUT ANY PROSPECTS FOR A SALE ARE GETTING OUT OF THE BUSINESS WE USED TO SELL A DOZEN COMBINES A YEAR SAYS ALLEN JACKSON 53 THOSE DAYS ARE GONE THEIR DECISION TAKES 12 JOBS FROM WEBSTER POP 2417 AND MERCHANTS FRET THAT FARM FAMILIES HAVE LESS REASON NOW TO SHOP THEIR MAIN STREET ADVERTISEMENTS IN THE WEEKLY REPORTER & FARMER NEWSPAPER ALREADY ARE SHRINKING SHOULD I STAY TO FIGHT THIS ASKS DAVID CHILSON THE 29YEAROLD VICE PRESIDENT OF THE FOURTHGENERATION ELEVATOR STORE CO WHERE APPAREL SALES ARE RUNNING 5 BELOW A YEAR AGO JUST SOUTH OF TOWN STEVE ALDRICH 43 IS WATCHING A TRACTOR DRIVEN BY HIS SON DARRELL SLICE UP A BLEACHED FIELD OF CORN WITH A 28FOOTWIDE RACK OF STEEL DISKS WE ALL KNOW GUYS THAT AREN'T GOING TO MAKE IT SAYS MR ALDRICH THEY JUST DON'T KNOW IT YET THE BARRELCHESTED FARMER GRABS A STALK SHUCKS THE EAR THEN BITES INTO THE PALE KERNELS MILKY FLUID SPLATTERS ON HIS RED PLAID SHIRT BY NOW THE KERNELS ARE USUALLY HARD ENOUGH FOR STORAGE BUT THE FIELD GREW SO SLOWLY DURING THE RAINY SUMMER THAT FROST KILLED THE IMMATURE PLANTS BEFORE THE SEEDS DRIED MR ALDRICH IS ONE OF WEBSTER'S MOST FRUGAL FARMERS HE ESCHEWS BANKS CREDIT CARDS AND BRANDNAME CIGARETTES THANKS TO FEDERALLY SUBSIDIZED CROP INSURANCE DISASTER AID AND A SURPRISINGLY GOOD WHEAT CROP HIS 2500ACRE OPERATION WILL BREAK EVEN THIS YEAR BUT REPAIRS WILL BE PUT OFF AND WINTER WILL BE FULL OF WORRIES ABOUT NEXT YEAR'S WEATHER I'M IN TOTAL DISBELIEF THAT PRICES HAVEN'T REACTED LIKE THEY SHOULD SAYS MR ALDRICH MAYBE SOME OF IT IS THE WORLD CHANGING HE SAYS QUIETLY BUT THAT CANNOT EXPLAIN EVERYTHING AT SECURITY BANK & TRUST CO THE LOBBY OF WHICH IS GUARDED BY TWO UPRIGHT ELEPHANT TUSKS VICE PRESIDENT DAN MENKING FIGURES ABOUT 40 OF THE BANK'S FARMERS WON'T COLLECT ENOUGH FROM THE HARVEST AND DISASTER ASSISTANCE TO PAY THEIR LOANS THIS WINTER US FARM BANKS ARE RIDING A PROFIT BOOM SO HE CAN AFFORD TO GIVE A ONEYEAR EXTENSION TO MOST BORROWERS BUT A HANDFUL FACE FORECLOSURE AND SOME WON'T BE ELIGIBLE FOR PLANTING LOANS IN THE SPRING SOMETIMES I DON'T KNOW WHY THEY WANT TO FARM SAYS MR MENKING IT'S JUST GETTING HARDER 9310210024 931021 WHO'S NEWS CAVALIER HOMES INC CAVALIER HOMES INC WICHITA FALLS TEXAS LEE ROY JORDAN 53 YEARS OLD WAS ELECTED A DIRECTOR OF THIS MOBILE HOME MANUFACTURER INCREASING THE SIZE OF THE BOARD TO FIVE MEMBERS MR JORDAN A FORMER PROFESSIONAL FOOTBALL PLAYER IS OWNER AND PRESIDENT OF LEE ROY JORDAN REDWOOD LUMBER CO DALLAS 9310210023 931021 POLITICS & PEOPLE BELL ATLANTICTCI A MERGER DEMOCRATS SHOULD LIKE BY ALBERT R HUNT RON WYDEN IS A BONA FIDE LIBERAL VOTING MORE THAN 80 OF THE TIME WITH LABOR AND LIBERAL INTERESTS DURING 13 YEARS IN CONGRESS BUT ON THE PROPOSED MERGER OF BELL ATLANTIC AND TELECOMMUNICATIONS INC HE'S WORRIED ABOUT HIS USUAL ALLIES MANY DEMOCRATS HAVE A VISCERAL CONCERN WITH ANYTHING BIG NOTES THE OREGON DEMOCRAT IT'S ALMOST PART OF THE LIBERAL CHROMOSOME THAT IF IT'S BIG IT'S BAD THE TEST HE ARGUES SHOULD BE IS IT PROCOMPETITIVE AND DOES IT GIVE EVERYBODY EQUAL ACCESS ON EQUAL TERMS ON THAT BASIS REP WYDEN SEES A BOON FOR CONSUMERS IN A MERGER OF BELL ATLANTIC THE MOST AGGRESSIVE AND INNOVATIVE BABY BELL AND TCI THE LARGEST AND MOST INFLUENTIAL CABLE TV SYSTEM THE RESULT SHOULD BE TO CREATE MORE CHOICES TO PROMOTE TECHNOLOGICAL DEVELOPMENT AND TO KEEP THE BEDROCK OF TELECOMMUNICATIONS WHICH IS UNIVERSAL SERVICE THAT VIEW IS ALSO EMBRACED BY CHARLES FERRIS FORMER CHAIRMAN OF THE FEDERAL COMMUNICATIONS COMMISSION ESPECIALLY SINCE BELL ATLANTIC PROMISES TO DIVEST TCI CABLE SYSTEMS IN AREAS WHERE IT OPERATES TELEPHONE SERVICES TO GUARANTEE THAT AT LEAST TWO WIRES WILL GO INTO EVERY HOME MAKES THIS A HEALTHY DEVELOPMENT SAYS MR FERRIS ONCE DESCRIBED AS A FREEMARKET LIBERAL ON THE OTHER SIDE THE DEAL HAS BEEN ASSAILED BY CONSUMER GROUPS AND SEN HOWARD METZENBAUM WHO CHARGE IT WOULD ELIMINATE COMPETITION AND WANT TO BLOCK IT LEGISLATIVELY WHETHER THIS BIGISBAD VIEW OR THE WYDENFERRIS VIEW PREVAILS OFFERS ONE OF THE DEFINING TESTS OF WHAT'S A NEW DEMOCRAT A KEY WILL BE VICE PRESIDENT ALBERT GORE WHO CONTRARY TO PRESS REPORTS DIDN'T MEET WITH THE PRINCIPALS LAST WEEK THE VICE PRESIDENT WANTS TO ENCOURAGE A VIGOROUS REVIEW WHICH PERHAPS COULD SHAPE SOME CONDITIONS BUT THE EARLY INDICATIONS ARE THAT THE CLINTON ADMINISTRATION WISELY WILL NOT TRY TO BLOCK THIS MERGER THAT NEEDN'T SIGNAL A WEAK ANTITRUST POLICY OR AN ACCEPTANCE OF WHAT TOO OFTEN WAS A COROLLARY REPUBLICAN VIEW THAT IN A GLOBAL ECONOMY BIG IS NECESSARILY GOOD ANYONE SUFFERING UNDER THAT ILLUSION SHOULD READ JAMES STEWART'S PIECE IN THE NEW YORKER THIS FEBRUARY CONTRASTING THE PERFORMANCES OF IBM AND AT&T OVER THE PAST DECADE ON THE SAME DAY IN 1982 THE REAGAN ADMINISTRATION DROPPED AN ANTITRUST CASE AGAINST IBM AND DESPITE THE PRIVATE RESERVATIONS OF THE PRESIDENT AND HIS TOP CABINET OFFICERS FORCED AT&T TO DIVEST ITSELF OF ITS REGIONAL OPERATING COMPANIES MOST CONSERVATIVES AND BUSINESS INTERESTS HAILED THE IBM DECISION BUT THE GOVERNMENT AND HAROLD GREENE THE PRESIDING JUDGE IN THE CASE WERE VILIFIED FOR JEOPARDIZING THE BEST PHONE SYSTEM IN THE WORLD A DECADE LATER THOSE ASSESSMENTS HAVE BEEN TURNED UPSIDE DOWN AT&T AND MOST OF THE SEVEN REGIONAL PHONE COMPANIES THE BABY BELLS HAVE DISPLAYED AN INNOVATION THAT WAS LACKING IN THE MONOPOLISTIC PARENT COMPANY OF 1982 BY CONTRAST IBM AVOIDING THE DREADED DIVESTITURE BECAME MORE ENTRENCHED LESS ENTREPRENEURIAL AND FAR LESS SUCCESSFUL AND DECADES EARLIER IF THE GOVERNMENT HAD FOLLOWED THE ADVICE OF ANTITRUST ADVISERS AND BROKEN UP GENERAL MOTORS THE US AUTOMOBILE INDUSTRY PROBABLY WOULD HAVE BEEN HEALTHIER IN THE CURRENT CONTEXT THERE MAY BE SEVERAL LARGE NEW MONOPOLIES THAT THE GOVERNMENT SHOULD SCRUTINIZE INCLUDING MICROSOFT AND ANY BELL ATLANTICTCI COMBINATION OR OTHER SUCH MERGERS SHOULD BE WATCHED CLOSELY TO ENSURE THAT ANY TEMPTATIONS TO REESTABLISH DISTRIBUTIONAL MONOPOLIES ARE THWARTED BUT TRYING TO PROTECT A STRANGLEHOLD ON AN EXISTING FRANCHISE IS DIFFERENT FROM TRYING TO CREATE AN UNCERTAIN NEW INTERACTIVE VIDEO WORLD THOMAS KAUPER A UNIVERSITY OF MICHIGAN LAW SCHOOL PROFESSOR WHO INITIATED THE AT&T CASE SAYS HE DOESN'T KNOW ENOUGH ABOUT THE COMPLEXITY OF THE BELL ATLANTICTCI CASE TO FORM ANY JUDGMENT BUT NOTES THE PROFOUND DIFFERENCES FROM HIS CASE THIS POSES MUCH DIFFERENT QUESTIONS ABOUT PROGNOSTICATING THE FUTURE RATHER THAN ASSESSING THE PAST WITH OTHERS RUSHING TO FORM SIMILAR TELECOMMUNICATIONS PARTNERSHIPS NOW MR FERRIS SUGGESTS THE FEAR OF DUOPOLIES MAY BE MISPLACED HERE UNLIKE AIRLINES FOR EXAMPLE THE TELECOMMUNICATIONS INDUSTRY IS MOVING SO SWIFTLY THAT STANDING STILL SEEMS A PRESCRIPTION FOR FAILURE MOREOVER REP WYDEN ARGUES THAT THIS IS AN AREA WHERE THE US DOMINATES AROUND THE WORLD AND THE POTENTIAL FOR REAL ECONOMIC GROWTH IS CONSIDERABLE THIS WILL CREATE EXACTLY THE SORT OF HIGHSKILLED HIGHWAGE JOBS THAT WE NEED IN THE UNITED STATES REP WYDEN A MEMBER OF THE HOUSE TELECOMMUNICATIONS SUBCOMMITTEE RECEIVED SEVERAL THOUSAND DOLLARS OF CAMPAIGN CONTRIBUTIONS FROM TELECOMMUNICATION INTERESTS BUT NONE FROM BELL ATLANTIC OR TCI MY WIFE IS AN ANCHORWOMAN FOR THE CABLE NEWS NETWORK WHICH IS 223 OWNED BY TCI AND I AM THE MODERATOR OF CNN'S CAPITAL GANG AND WHILE MOST OF THE PERSONAL FOCUS OF THIS MERGER HAS BEEN ON JOHN MALONE THE BRILLIANT AND BELLIGERENT HEAD OF TCI ONCE CALLED THE DARTH VADER OF CABLE BY MR GORE EQUALLY INTERESTING IS RAYMOND SMITH THE CHAIRMAN OF BELL ATLANTIC AND SLATED TO HEAD THE MERGED COMPANY A SELFDESCRIBED ECONOMIC CONSERVATIVE AND SOCIAL LIBERAL MR SMITH BACKED GEORGE BUSH IN 1992 AFTER THAT ONLY HIS NAME IS CONVENTIONAL HE'S A MEMBER OF THE AMERICAN CIVIL LIBERTIES UNION AND THE NAACP A PLAYWRIGHT AND ACTOR DURING THE ARDUOUS NEGOTIATIONS WITH TCI HE REGULARLY TURNED TO HIS APPLE DUO DOCK TO BANG OUT THE AUTOBIOGRAPHY OF HIS CHILDHOOD THAT HE'S WRITING FOR HIS FOUR CHILDREN AT DINNER LAST SATURDAY HE WAS INTRODUCED TO FLORIDA UTILITIES COMMISSIONER JULIA JOHNSON AND INSTANTLY RECITED A ROBERT HERRICK POEM ABOUT JULIA AT BELL ATLANTIC HE HAS PUT THE COMPANY IN THE FOREFRONT OF CHANGE MOVING AGGRESSIVELY IN FIBEROPTICS CELLULAR PHONES AND TO OFFER VIDEO SERVICES THROUGH BELL ATLANTIC'S PHONE LINES HE SAYS HE WAS ON THE VERGE OF LEAVING AN ATROPHYING AT&T MORE THAN A DECADE AGO BEFORE THE DIVESTITURE AND DRAWS HUGE DISTINCTIONS BETWEEN THAT AND WHAT HE'S TRYING CONCEPTUALLY THIS IS TOTALLY THE OPPOSITE WHEN YOU BUILD AN OPEN INTERACTIVE NETWORK YOU OPEN IT TO COMPETITION FROM EVERYONE ALTHOUGH THE PROPOSED BELL ATLANTICTCI MERGER WOULD BE THE SECOND LARGEST EVER HE RELISHES THE FACT THAT MOST OF THE WORK WAS DONE BY A FEW PRINCIPALS AND THE INVESTMENT BANKERS AND LAWYERS ARE GETTING A MUCH SMALLER CUT THAN NORMAL IN SHORT HE'S THE TYPE OF CEO THAT NEW DEMOCRATS SHOULD LOVE ONE OF HIS CRITICAL MISSIONS NOW IS TO CONVINCE VICE PRESIDENT GORE WONDER IF HE KNOWS ANY POEMS ABOUT AN ALBERT 9310210022 931021 PEPPERAND SALT REGARDING HUMANS BIRDS AND BEES NOW BECOMES ALAS JUST BORING I SHOULD TRY IT A SALTFREE DIET 9310210021 931021 EDUCATION DEBATE GROWS OVER VOUCHERS FOR EDUCATION BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL PASS OR FAIL THE HEAT BEING GENERATED BY A CALIFORNIA BALLOT INITIATIVE ON PUBLIC FUNDING OF PRIVATEEDUCATION VOUCHERS HAS PUSHED THE ISSUE TO THE FRONT BURNER NATIONWIDE DESPITE UNSUCCESSFUL EFFORTS TO PASS SIMILAR MEASURES IN OREGON AND COLORADO A GROWING NUMBER OF STATES ARE CONSIDERING USING SCHOOL VOUCHERS LEGISLATIVE DRIVES ARE UNDER WAY IN FLORIDA CONNECTICUT INDIANA AND OTHER STATES I ESTIMATE A DOZEN STATES WILL HAVE VOUCHER BILLS PRESENTED TO THEIR LEGISLATURES IN 1994 SAYS CONNIE L KOPROWICZ AN EDUCATION POLICY ASSOCIATE AT THE DENVERBASED NATIONAL CONFERENCE OF STATE LEGISLATURES A YES VOTE AT THE POLLS NOV 2 ON CALIFORNIA'S PROPOSITION 174 WOULD AMEND THE STATE'S CONSTITUTION AND GIVE PARENTS WHO CHOOSE NOT TO SEND A CHILD TO PUBLIC SCHOOL A VOUCHER WORTH ABOUT 2600 THE VOUCHER COULD BE USED TOWARD TUITION AT ANY PRIVATE SCHOOL WITH MORE THAN 25 STUDENTS THAT ACCEPTED THE CHILD THE STATE'S 52 MILLION PUBLICSCHOOL STUDENTS COULD START USING THE VOUCHERS NEXT FALL WITH STUDENTS WHO ARE ALREADY IN PRIVATE SCHOOL ELIGIBLE IN 1995 CURRENT VOTER SURVEYS INDICATE THAT THE INITIATIVE IS BEHIND THOUGH PROVOUCHER ADVERTISING HAS JUST STARTED THE ANTIVOUCHER CAMPAIGN BACKED BY THE POWERFUL NATIONAL EDUCATION ASSOCIATION IS OUTSPENDING ITS OPPONENTS BY A LARGE MARGIN NED HOPKINS ASSOCIATE EXECUTIVE DIRECTOR OF THE NEAAFFILIATED CALIFORNIA TEACHERS ASSOCIATION SAYS THE GROUP'S POLLS SHOW OPPOSITION AT 25 TO ONE SINCE CALIFORNIA REPUBLICAN GOV PETE WILSON CAME OUT AGAINST THE MEASURE THIS MONTH CITING POTENTIAL FISCAL RISKS OPPONENTS SAY THE INITIATIVE WOULD GUT PUBLIC EDUCATION AND CREATE MORE INEQUALITY AND DISCRIMINATION THEY ALSO ARGUE THAT IT WOULD ENCOURAGE THE RISE OF SHODDY PRIVATE SCHOOLS BECAUSE THE STATE DOESN'T REQUIRE PRIVATE INSTITUTIONS TO MEET MINIMUM CURRICULUM STANDARDS OR HIRE CERTIFIED TEACHERS PROPONENTS SAY THE FREEMARKET COMPETITION SPURRED BY VOUCHERS WOULD MAKE GOOD SCHOOLS BETTER FORCE BAD SCHOOLS TO CLOSE AND LIBERATE INNERCITY CHILDREN FROM CRUMBLING PUBLIC SCHOOLS THAT 2600 IS LIKE A MILLION DOLLARS IN THE HANDS OF POOR FAMILIES SAYS WISCONSIN STATE REP POLLY WILLIAMS A FORMER WELFARE MOTHER AND THE FORCE BEHIND A VOUCHER PROGRAM IN MILWAUKEE THE FISCAL IMPACT OF THE INITIATIVE IS MURKY A RAND CORP STUDY CALCULATES IT COULD EITHER COST UP TO 12 BILLION OR SAVE AS MUCH AS 31 BILLION ANNUALLY DEPENDING ON HOW MANY STUDENTS USE THE VOUCHERS COURT RULINGS AND THE RESOLUTION OF A NUMBER OF COMPLEX SCHOOL FUNDING ISSUES BECAUSE 70 OF THE STATE'S 2707 ELIGIBLE PRIVATE SCHOOLS ARE RELIGIOUS LEGAL CHALLENGES ARE CERTAIN BUT NATIONWIDE THE VOUCHER ISSUE IS GATHERING STEAM SAYS STEPHEN CARROLL A RAND RESEARCHER WHO COAUTHORED THE REPORT ON THE INITIATIVE'S FISCAL IMPACT I THOUGHT VOUCHERS WOULD DIE WITH THE CLINTON ELECTION BUT THEY SEEM TO HAVE HEAVED UP AGAIN AGREES JOHN WITTE A PROFESSOR AT THE UNIVERSITY OF WISCONSIN THE ROMAN CATHOLIC CHURCH HAS LOBBIED FOR DECADES FOR PUBLIC FUNDING OF PAROCHIALSCHOOL EDUCATION AND THE VOUCHER CONCEPT WAS ESPOUSED BY CONSERVATIVE ECONOMIST MILTON FRIEDMAN IN THE 1950S BUT THE MOVEMENT HAS GOTTEN NEW WIND RECENTLY BECAUSE OF HIGHPROFILE REPUBLICAN BACKING LED BY FORMER EDUCATION SECRETARIES WILLIAM J BENNETT AND LAMAR ALEXANDER AND FORMER HUD SECRETARY JACK KEMP TWO NEW PROVOUCHER GROUPS AMERICANS FOR CHOICE AND EMPOWER AMERICA HAVE POSITIONED THEMSELVES AS IDEOLOGICAL SWAT TEAMS READY TO SWOOP IN WHEREVER NECESSARY JOEL ROSENBERG AN ANALYST FOR EMPOWER AMERICA LISTS NEW JERSEY GEORGIA KANSAS FLORIDA MICHIGAN OREGON PENNSYLVANIA AND OHIO AS MAIN BATTLE FRONTS VOUCHERS ARE PART OF A BROADER TREND TO GIVE PARENTS MORE SAY ABOUT WHERE THEIR CHILDREN WILL ATTEND SCHOOL MORE THAN A DOZEN STATES HAVE AUTHORIZED FORMS OF PUBLICSCHOOL OPEN ENROLLMENT IN RECENT YEARS AND SEVEN STATES HAVE BEGUN EXPERIMENTING WITH PUBLIC CHARTER SCHOOLS THAT OPERATE INDEPENDENT OF STATE AND DISTRICT REGULATIONS PROF WITTE HAS EVALUATED A MILWAUKEE PROGRAM THAT GIVES VOUCHERS TO 631 LOWINCOME PUBLICSCHOOL STUDENTS THE ONLY STATEFUNDED VOUCHER PROGRAM IN THE NATION UNLIKE THE CALIFORNIA PROPOSAL MILWAUKEE'S PROGRAM EXCLUDES RELIGIOUS SCHOOLS SINCE IT STARTED IN 1990 THE PROGRAM HAS HAD MIXED RESULTS ALTHOUGH MANY PARENTS ARE PLEASED THE PROGRAM HAS HAD HIGH ATTRITION RATES AND TEST SCORES FOR SECONDYEAR STUDENTS DROPPED CONSIDERABLY IN READING AND STAYED THE SAME IN MATH ACCORDING TO PROF WITTE'S STUDY EVEN SOME PRIVATE SCHOOL ADMINISTRATORS QUESTION THE MARKET LOGIC BEHIND THE CALIFORNIA VOUCHER PLAN IF YOU HAVE PEOPLE WILLING TO PAY 10000 TO PRIVATE SCHOOLS WITH LONG WAITING LISTS WHY AREN'T WE SEEING SCHOOLS SPRING UP ALL THE TIME ASKS JIM LUSBY HEADMASTER OF THE EPISCOPAL ST MICHAEL AND ALL ANGELS' SCHOOL IN STUDIO CITY CALIF VOUCHER ENTHUSIASTS ARGUE THAT NEW SCHOOLS WOULD ARISE WHERE DEMAND IS GREATEST THERE ARE NO PRIVATE SCHOOLS IN INNER CITY AREAS NOW BECAUSE THERE'S NO MARKET SAYS HARVEY KASLOW A PHYSIOLOGY PROFESSOR AT THE UNIVERSITY OF SOUTHERN CALIFORNIA IF INNERCITY PARENTS GET VOUCHERS HE SAYS ENTREPRENEURS AND CONCERNED ORGANIZATIONS WILL MOVE IN TO SERVE THE MARKET SOME PARENTS ARE WORRIED BECAUSE THE VOUCHER INITIATIVE HAS NO PROVISIONS FOR CHILDREN WITH MENTAL OR PHYSICAL DISABILITIES OR FOR THOSE WHO AREN'T FLUENT IN ENGLISH SABRINA COWANS A 35YEAROLD SECRETARY AT RAND IN SANTA MONICA HAS A HYPERACTIVE 11YEAROLD SON SCHOOLS WOULD BE ABLE TO DISCRIMINATE AND HE'S POTENTIALLY A PROBLEM IF HE HASN'T HAD HIS MEDICINE MS COWANS SAYS MY GUESS IS THAT THE INITIATIVE WOULD LEAD TO A MORE UNEQUAL SYSTEM SAYS PROF WITTE BUT HE CONCEDES THAT THE CONCEPT OF SCHOOL VOUCHERS STRIKES A POWERFUL CHORD AMONG FRUSTRATED PARENTS I DON'T KNOW IF THE VOUCHER IDEA IS ONE WHOSE TIME HAS COME BUT IT'S AN IDEA WHOSE DISCUSSION TIME HAS COME SAYS JAMES W GUTHRIE AN EDUCATION PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY IN CALIFORNIA THE PROPONENTS OF 174 ARE DISORGANIZED AND THEY DON'T HAVE ANY MONEY YET THEY'VE PROVOKED A FUROR 9310210020 931021 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG THIS WEEK MARKS THE SECOND ANNIVERSARY OF THIS COLUMN WHICH BEGAN LIFE WITH THE WORDS PERSONAL COMPUTERS ARE JUST TOO HARD TO USE AS I DID LAST YEAR I'M DEVOTING THIS ANNIVERSARY EDITION TO AN OVERVIEW OF WHETHER COMPUTERS ARE GETTING ANY EASIER TO USE FOR REGULAR PEOPLE WHO MAY BE PLENTY SMART BUT AREN'T COMPUTER EXPERTS OVER THE PAST 12 MONTHS I BELIEVE THINGS CONTINUED TO GET GRADUALLY BETTER BUT THE GAINS WEREN'T ENOUGH TO MAKE PERSONAL COMPUTERS EVERYDAY APPLIANCES ADVANCES WERE DIMINISHED BY SOME NEGATIVE DEVELOPMENTS AND THE COMPUTER INDUSTRY TENDED TO OVERPROMISE AS ALWAYS MUCH BIGGER PAYOFFS SEEM POSSIBLE NEXT YEAR IF PLANS PUT IN PLACE THIS YEAR PAN OUT HERE IN MY VIEW ARE SOME OF THE KEY DEVELOPMENTS ON THIS FRONT OVER THE PAST 12 MONTHS FIRST AND FOREMOST HARDWARE AND SOFTWARE MAKERS HAVE SPOTTED A HUGE SALES OPPORTUNITY IN THE HOME AND SMALLOFFICE MARKETS ONE THAT MAY DWARF THE BIGBUSINESS ARENA THAT HAS DRIVEN COMPUTING FOR YEARS BUT THESE CUSTOMERS LACK THE LARGE STAFFS OF COMPUTER EXPERTS WHO HAVE HELD THE HANDS OF CORPORATE USERS SO THE INDUSTRY KNOWS IT MUST MAKE ITS PRODUCTS EASIER TO INSTALL EXPAND AND USE SOME COMPANIES ARE TAKING THE CHALLENGE MORE SERIOUSLY THAN OTHERS MICROSOFT NOW HAS 500 PEOPLE IN ITS CONSUMER DIVISION AND COMPAQ COMPUTER HAS RECENTLY HELD INTERNAL MEETINGS TO PROSELYTIZE EMPLOYEES ON THE CREDO OF EASE OF USE BUT MARKET REALITY WILL DO MORE TO DRIVE EVERY FIRM IN THIS DIRECTION THAN ALL THE MEETINGS AND COLUMNS IN THE WORLD SECOND THE EASIESTTOUSE COMPUTERS APPLE COMPUTER'S MACINTOSH MODELS ARE FINALLY BEING PRICED AT LEVELS THAT BRING THEM WITHIN REACH OF MANY HOMES AND SMALL BUSINESSES FAST POWERFUL MACS BASED ON ADVANCED CHIPS WITH GENEROUS MEMORY AND DISK STORAGE CAN BE HAD FOR WELL UNDER 2000 AND APPLE PLANS EARLY NEXT YEAR TO INTRODUCE RADICALLY FASTER MODELS FOR LESS THAN 3000 THIRD MACS NEXT YEAR MAY FINALLY MEET THEIR MATCH IN A NEW STYLE OF IBMCOMPATIBLE PC RUNNING A NEW MUCHIMPROVED VERSION OF MICROSOFT'S WINDOWS SOFTWARE EARLIER THIS YEAR MICROSOFT COMPAQ AND CHIP MAKER INTEL PROMULGATED NEW COMPUTERDESIGN GUIDELINES CALLED PLUG AND PLAY THAT ARE AIMED AT ELIMINATING MANY OF THE CONFIGURATION HEADACHES ASSOCIATED WITH PLACING PCS ON A NETWORK OR HOOKING UP ADDON DEVICES COMPUTERS FOLLOWING THESE GUIDELINES ARE EXPECTED TO START APPEARING NEXT YEAR AS IS THE NEW VERSION OF WINDOWS WHICH IS DESIGNED TO EQUAL ALL THE FEATURES OF THE MACINTOSH'S BUILTIN SOFTWARE INCLUDING THE ABILITY TO NAME DOCUMENTS WITH LONG REAL ENGLISH TITLES THESE ARE JUST PROMISES BUT FOR THE FIRST TIME THEY SEEM CONCRETE DETAILED AND TIED TO MARKET FACTORS FOURTH COMPUTER COMPANIES ARE TAKING A HOST OF SMALLER STEPS AIMED AT EASING THE COMPLEXITIES OF COMPUTING EVEN BEFORE BIG CHANGES ARE IN PLACE NEARLY EVERY PC NOW COMES WITH WINDOWS AND OTHER SOFTWARE PRELOADED AND MANY MAKERS ARE OFFERING LOWPRICED MODELS WITH THINGS LIKE CDROMS ALREADY BUILT IN BOTH DEVELOPMENTS SPARE A LOT OF HASSLE AND HARDSHIP COMPANIES SUCH AS COMPAQ AND PACKARD BELL ELECTRONICS HAVE ALSO DEVELOPED THEIR OWN MODIFICATIONS FOR WINDOWS THAT MAKE IT EVEN SIMPLER TO USE AND INTERNATIONAL BUSINESS MACHINES HAS INTRODUCED COMPUTERS THAT LET YOU RESUME WORK RIGHT WHERE YOU LEFT OFF WHEN YOU RESTART THEM FIFTH THE COMPLICATED OLD SOFTWARE DESIGNS THAT REQUIRED MEMORIZING LOTS OF ARCANE COMMANDS WHAT I CALL SECRET HANDSHAKES ARE DYING WORDPERFECT RAN UP A WHITE FLAG OF SORTS THIS SUMMER WHEN IT INTRODUCED A NEW VERSION OF ITS VENERABLE OLD DOS WORD PROCESSOR THE EPITOME OF SECRETHANDSHAKE SOFTWARE IY VIEW THAT LOOKS AND ACTS LIKE A WINDOWS PROGRAM SIXTH MICROSOFT AND LOTUS DEVELOPMENT ARE SEPARATELY IMPOSING A COMPANYWIDE COMMON LOOK ON KEY PROGRAMS WITHIN THEIR RESPECTIVE PRODUCT LINES REDESIGNING THE MOST POPULAR PROGRAMS SO SCREENS LOOK SIMILAR AND DATA CAN BE SHARED MORE EASILY THAT CUTS TRAINING TIME FINALLY SOFTWARE HAS BEGUN TO ACTUALLY ADAPT TO THE WORK STYLE OF USERS APPLE'S NEWTON HANDHELD COMPUTER ACCEPTS COMMANDS LIKE SCHEDULE A MEETING WITH SUSAN ENTERED IN ENGLISH AND LINKS THE ACTIONS TO SPECIFIC PEOPLE YOU'VE PREVIOUSLY ENTERED IN ITS ADDRESS BOOK THE NEW VERSION OF MICROSOFT WORD FOR WINDOWS A WORD PROCESSOR MAINTAINS A LIST OF WORDS YOU COMMONLY MISSPELL AND AUTOMATICALLY CORRECTS THEM AS YOU TYPE THE PICTURE ISN'T ALL POSITIVE OF COURSE INCREASINGLY CUSTOMERS ARE BEING CHARGED FOR FORMERLY FREE TELEPHONE SUPPORT MOST COMPUTER MANUALS AND COMPUTER MAGAZINES REMAIN WAY TOO COMPLICATED FOR AVERAGE USERS TO FATHOM NETWORKING PCS WITHOUT HELP IS STILL TOO OFTEN A NIGHTMARE AND THE INDUSTRY CONTINUES ITS USUAL PREMATURE PROMISES OF GREAT BENEFITS FROM TECHNOLOGY APPLE AND COMPAQ ARE PEDDLING COMPUTERS THAT SUPPOSEDLY RECOGNIZE SPOKEN COMMANDS BUT THE FEATURE IS FAR MORE LIMITED THAN IT SEEMS IN THE ADS HANDWRITING RECOGNITION STILL ISN'T READY FOR DAILY BUSINESS USE WIRELESS COMMUNICATIONS REMAIN COSTLY AND DEPENDENT ON AN UNFINISHED TRANSMISSION SYSTEM THE INTERNET A MASSIVE CHAIN OF COMPUTER NETWORKS IS TOUTED AS AN INFORMATION HIGHWAY BUT IT'S STILL WAY TOO HARD TO GAIN ACCESS TO AND EVEN HARDER TO USE FOR AVERAGE BUSINESSES AND HOMES SO HANG IN THERE SHOP CAREFULLY AND STAY TUNED 9310210019 931021 BUSINESS BRIEF SOUTHWALL TECHNOLOGIES INC LOSS POSTED FOR 3RD PERIOD AND FORECAST FOR 4TH QUARTER SOUTHWALL TECHNOLOGIES INC REPORTED A THIRDQUARTER LOSS OF 261000 OR FOUR CENTS A SHARE AND SAID IT EXPECTS TO POST AN UNSPECIFIED LOSS FOR THE FOURTH QUARTER THE THIRDQUARTER LOSS COMPARES WITH NET INCOME OF 423000 OR SEVEN CENTS A SHARE A YEAR AGO THE LOSS WAS IN LINE WITH ANALYSTS' EXPECTATIONS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY SOUTHWALL FELL 125 CENTS OR 45 TO 2625 FOR THE PERIOD ENDED OCT 10 THE MAKER OF REFLECTIVE COATINGS FOR THE CONSTRUCTION AND AEROSPACE INDUSTRIES SAID REVENUE FELL 24 TO 45 MILLION FROM 59 MILLION SALES CONTINUE TO BE BELOW OUR EXPECTATIONS DUE TO THE LINGERING EFFECTS OF THE RECESSION AND LOWERTHANANTICIPATED DEFENSE SPENDING SAID J LARRY SMART PRESIDENT AND CHIEF EXECUTIVE OFFICER IN THE YEARAGO FOURTH QUARTER THE COMPANY HAD NET INCOME OF 47000 OR ONE CENT A SHARE ON REVENUE OF 57 MILLION 9310210017 931021 BEST WESTERN WINS ARBITRATION DECISION IN DISPUTE OVER BONDS SPECIAL TO THE WALL STREET JOURNAL NEW YORK AN ARBITRATION PANEL HAS ORDERED SHEARSON LEHMAN BROTHERS TO RETURN 27 MILLION TO BEST WESTERN INTERNATIONAL INC IN A DISPUTE OVER BONDS BACKED BY TROUBLED INSURER MUTUAL BENEFIT LIFE INSURANCE CO A THREEMEMBER PANEL OF NATIONAL ASSOCIATION OF SECURITIES DEALERS ARBITRATORS DENIED A REQUEST BY THE PHOENIXBASED COMPANY FOR TREBLE DAMAGES UNDER THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT THE DECISION ESSENTIALLY CANCELS A 1991 PURCHASE BY BEST WESTERN OF 29 MILLION IN BONDS SOLD TO FINANCE A REAL ESTATE DEVELOPMENT PROJECT THE RANCHO LADERA 220UNIT APARTMENT COMPLEX IN PHOENIX WAS BUILT BY AN AFFILIATE OF MUTUAL BENEFIT SIX WEEKS AFTER BEST WESTERN'S PURCHASE MUTUAL BENEFIT A NEWARK NJ INSURER THAT GUARANTEED THE BONDS WAS PLACED IN REHABILITATION IT IS THE LARGEST US INSURER TO BECOME INSOLVENT BEST WESTERN'S COMPLAINT CLAIMS SHEARSON FAILED TO WARN IT OF MUTUAL BENEFIT'S TROUBLES AND INCORRECTLY SAID THE BONDS CARRIED A DOUBLEA RATING FROM STANDARD & POOR'S CORP THEY WERE RATED SINGLEA AT THE TIME OF THE SALE SINCE MUTUAL BENEFIT'S INSOLVENCY ONLY PARTIAL INTEREST PAYMENTS HAVE BEEN PAID ON THE BONDS AND A PUT PROVISION THAT WOULD ALLOW HOLDERS TO SELL THEIR BONDS BACK TO MUTUAL BENEFIT HASN'T BEEN HONORED A SPOKESMAN FOR LEHMAN BROTHERS SAID THAT COMPANY AND SMITH BARNEY SHEARSON INC A UNIT OF PRIMERICA CORP WILL EACH PAY HALF OF THE ARBITRATION AWARD BEST WESTERN WILL RETURN THE BONDS A SPOKESMAN SAID LEHMAN IS SATISFIED WITH THE OUTCOME OF THE ARBITRATION AWARD THERE WAS NO BLAME ASSESSED AGAINST SHEARSON LEHMAN HE SAID A SPOKESMAN FOR SMITH BARNEY SHEARSON HAD NO IMMEDIATE COMMENT 9310210016 931021 CANYON RESOURCES PROGRAM GOLDEN COLO CANYON RESOURCES CORP SAID IT HAS BEGUN A PROGRAM TO EXPLORE FOR AND ACQUIRE GOLD PROJECTS IN ARGENTINA THE COMPANY SAID IT CONSIDERS ARGENTINA'S MINERAL POTENTIAL NOT TO BE FULLY EXPLORED AND BELIEVES THERE IS EXCELLENT POTENTIAL FOR GOLD AND COPPER DEPOSITS IN THE ARGENTINE PORTION OF THE ANDEAN CORDILLERA ADJACENT TO EXTENSIVELY PROSPECTED MINERAL BELTS IN NEIGHBORING CHILE THE COMPANY SAID RECENT CHANGES IN ARGENTINIAN INVESTMENT AND MINING LAWS CREATED A POSITIVE CLIMATE FOR EXPLORATION 9310210015 931021 TECHNOLOGY & HEALTH BRITISH TELECOM CABLETV CONCERNS MAY STEP UP BATTLE BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON A BATTLE FOR MARKET SHARE BETWEEN BRITISH TELECOMMUNICATIONS PLC AND UK CABLETELEVISION NETWORKS IS LIKELY TO INTENSIFY AS SOME CABLE COMPANIES ARE CONTEMPLATING CUTTING THE PRICES OF THEIR CABLETELEPHONE SERVICES IN COMING MONTHS EUGENE CONNELL HEAD OF NYNEX CORP'S UK CABLETV UNIT SAYS A NUMBER OF DISCOUNTCALLING PLANS ARE POSSIBLE ON HIS COMPANY'S CABLE NETWORK INCLUDING FREE NIGHTTIME CALLS OR SPECIAL PROMOTIONS FOR PHONING FRIENDS AND RELATIVES NYNEX THE BABY BELL TELEPHONE COMPANY FOR NEW YORK AND NEW ENGLAND HAS EMERGED IN THE PAST TWO YEARS AS THE BIGGEST CABLETV OPERATOR IN BRITAIN AND BT'S MOST FORMIDABLE RIVAL FOR LOCAL TELEPHONE SERVICE SUCH EXTRA DISCOUNTS MAY BOOST THE GROWTH RATE OF CABLETELEPHONE SERVICES IN BRITAIN BY RUNNING STANDARD TELEPHONE WIRES ALONGSIDE THEIR TV CABLES CABLETV COMPANIES LAST MONTH WERE OPERATING 226871 TELEPHONE LINES TO BRITISH SUBSCRIBERS THAT'S A FRACTION OF BT'S 256 MILLION LINES TODAY BUT BY SOME ESTIMATES CABLETV OPERATORS COULD CAPTURE AS MUCH AS 20 OF BRITAIN'S TELEPHONE MARKET WITHIN A DECADE BRITISH CABLE CUSTOMERS' EAGERNESS TO RECEIVE PHONE SERVICE THROUGH THEIR CABLE LINES CONFIRMS THE COMING HEADON COLLISION BETWEEN THE TWO INDUSTRIES IN THE US SUCH CONCERNS ABOUT CABLE COMPANIES LURING AWAY PHONE BUSINESS PROMPTED BELL ATLANTIC CORP INTO ITS PLANNED ACQUISITION OF CABLETV COMPANY TELECOMMUNICATIONS INC IN BRITAIN DISCOUNTING IS THE CABLE COMPANIES' MAIN WEAPON AGAINST BT NYNEX'S LONGDISTANCE TARIFFS FOR INSTANCE CURRENTLY UNDERCUT BT'S AS MUCH AS 13 BUT BECAUSE IT LEASES SOME SWITCHES FROM BT AND RIVAL MERCURY COMMUNICATIONS LTD A UNIT OF CABLE & WIRELESS PLC NYNEX'S LOCALCALL RATES ARE IN SOME CASES MORE EXPENSIVE THAN BT'S THEREFORE NYNEX LIKE OTHER CABLE OPERATORS IS INSTALLING LOCAL TELEPHONE EXCHANGES TO SWITCH ITS OWN CALLS THE PROSPECT OF NEW SWITCHES HELPED THE CABLE COMPANIES NEGOTIATE LOWERCOST CONTRACTS WITH BT AND MERCURY LAST SUMMER THE RESULT NYNEX'S MR CONNELL SAYS IS THAT THE TYPICAL GROSS PROFIT MARGIN ON CABLETELEPHONE CALLS COULD DOUBLE TO 50 FROM 25 TODAY LEAVING MORE LEEWAY FOR THE CABLE COMPANIES TO ADJUST TARIFFS AND BT'S REACTION IF THE CABLE OPERATORS CUT THEIR TARIFFS WE WILL RESPOND APPROPRIATELY IN A COMPETITIVE MARKETPLACE A BT SPOKESMAN SAYS WE TAKE COMPETITION LIKE THIS SERIOUSLY 9310210014 931021 WHO'S NEWS CENTURA BANKS INC CENTURA BANKS INC ROCKY MOUNT NC CECIL W SEWELL JR WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS 37 BILLIONASSET BANK HOLDING COMPANY MR SEWELL 46 YEARS OLD SUCCEEDS ROBERT R MAULDIN 58 WHO RETAINED THE TITLE OF PRESIDENT AFTER BECOMING CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE BANK IN JANUARY 9310210013 931021 TO BE SURE CANADA AND MEXICO MIGHT ALSO HAVE STUFF IN TENTS BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE WANTS PEOPLE SKEPTICAL ABOUT THE NORTH AMERICAN FREE TRADE AGREEMENT TO LISTEN TO SAMUEL BAKER A SENIOR MANAGER AT GAYMAR INDUSTRIES INC HIS PITCH NAFTA WILL BE GOOD FOR BUSINESS AND GOOD FOR BEDSORE SUFFERERS IN MEXICO GAYMAR SELLS MATTRESS CUSHIONS WHICH MR BAKER BROUGHT TO A TENT SET UP ON THE SOUTH LAWN OF THE WHITE HOUSE YESTERDAY FOR NAFTA PRODUCTS AND JOBS DAY THE CLINTON ADMINISTRATION'S ATTEMPT TO SHOW THE PUBLIC A POTPOURRI OF US EXPORTS THAT WOULD BENEFIT FROM REDUCED BARRIERS TO TRADE WITH MEXICO NEXT TO THE CUSHIONS MILLIPORE CORP SHOWCASED SCIENTIFIC INSTRUMENTS MEMBRANES AND FILTERS IT SELLS TO MEXICO MILLIPORE'S MOST ATTENTIONGETTING ITEMS THOUGH WERE TSHIRTS WITH THE MESSAGE HAFTA NAFTA A PLAY ON THE ANTINAFTA UNION SLOGAN NAFTA SHAFTA YES THE TSHIRTS WERE MADE IN THE US PRESIDENT CLINTON STROLLED THE AISLES OF THE BIG TENT ALMOST AS IF HE WERE WINDOW SHOPPING IT'S LIKE A FLEA MARKET SAID MARY CUNNINGHAM A CLOTH INSPECTOR FOR SPRINGS INDUSTRIES INC STANDING BEHIND A SPREAD OF COMFORTERS AND BEDSHEETS IT'S A THREERING CIRCUS SAID CHARLES SINUNU INTERNATIONAL SALES MANAGER AT ELLICOTT MACHINE CORP WHICH BROUGHT MODELS OF ITS DREDGING EQUIPMENT IT'S WASHINGTON BUT IT'S IMPORTANT FOR US ROGER STUBER PRESIDENT OF THE NATIONAL CATTLEMEN'S ASSOCIATION HANDED MR CLINTON A PLASTICWRAPPED 12OUNCE NEW YORK SIRLOIN STEAK THE PRESIDENT REPORTED MR STUBER SAID WELL I'LL PROBABLY FIX THAT TONIGHT HILLARY WILL BE OUT OF TOWN' HE HAD WANTED TO BRING A LIVE HEIFER INSTEAD OF THE ICEBOX OF BEEF THAT HE DID BRING BUT THE WHITE HOUSE VETOED THE IDEA THE MOSTVISITED BOOTH AROUND LUNCHTIME WAS THE ONE SET UP BY THE INTERNATIONAL APPLE INSTITUTE MR CLINTON PICKED UP AN APPLE NOTED A PROUD ELLEN TERPSTRA THE INSTITUTE'S PRESIDENT BUT HE DIDN'T MUNCH MICHAEL FLAHERTY PRESIDENT OF LO TOX PRODUCTS INTERNATIONAL EXHIBITED HIS COMPANY'S ROACH MOTELS EVEN PUTTING ONE ON A MODEL WHITE HOUSE CREATED BY THE US UNIT OF DENMARK'S LEGO AS ELSEWHERE IN TOWN OPPONENTS OF NAFTA STAGED COUNTER EVENTS PUBLIC CITIZEN A CONSUMER GROUP ISSUED A REALITY CHECK ASKING WHAT COULD YOU BUY ON 5 PER DAY WHICH THE GROUP SAYS IS THE PAY OF CERTAIN MEXICAN WORKERS THE CHOICES A A NEW CAR B A NEW REFRIGERATOR OR C NOT MUCH OF ANYTHING 9310210012 931021 CIRCUS CIRCUS STOCK FALLS ON FORECAST OF PROFIT OTHER CASINO SHARES TUMBLE BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL CIRCUS CIRCUS ENTERPRISES INC FRESH OFF THE OPENING OF THE LUXOR CASINO IN LAS VEGAS LAST WEEK SENT ITS STOCK TUMBLING WITH WEAKERTHANEXPECTED THIRDQUARTER EARNINGS ESTIMATES THAT HELPED TRIGGER A BROAD SELLOFF OF CASINO STOCKS CLYDE T TURNER THE COMPANY'S PRESIDENT SAID CIRCUS EXPECTS NET INCOME FOR THE FISCAL THIRD QUARTER ENDING OCT 31 TO RANGE FROM 36 CENTS TO 40 CENTS A SHARE BEFORE PREOPENING EXPENSES FOR THE LUXOR COMPARED WITH 42 CENTS A YEAR EARLIER THAT FALLS SHORT OF WALL STREET EXPECTATIONS WHERE ANALYSTS HAD PROJECTED NET INCOME OF 46 CENTS TO 49 CENTS A SHARE JITTERY INVESTORS SENT CIRCUS'S STOCK WHICH WAS HALTED FOR TRADING AT MIDDAY PENDING THE ANNOUNCEMENT DOWN 525 OR ABOUT 12 TO CLOSE AT 39125 OPERATING RESULTS ARE NOT AS STRONG AS EXPECTED FOR THE QUARTER ESPECIALLY IN AUGUST AND PARTICULARLY AT CIRCUS CIRCUS LAS VEGAS MR TURNER SAID OF THE COMPANY'S ORIGINAL CASINO ON THE LAS VEGAS STRIP ALSO HE SAID KURT SULLIVAN A 17YEAR COMPANY VETERAN WHO HAS BEEN MANAGER OF THE COMPANY'S RENO PROPERTY SUCCEEDS RICHARD BRAND AS THE CIRCUS CIRCUS LAS VEGAS PROPERTY'S GENERAL MANAGER MR TURNER SAID THE SOFT RESULTS AT THE CIRCUS CIRCUS LAS VEGAS CASINO AREN'T ATTRIBUTABLE TO THE AUGUST OPENING OF GRAND SLAM CANYON A 90 MILLION DOMED ATTRACTION AREA ATTACHED TO THE PROPERTY THE DOME THE LURES OF WHICH INCLUDE A FOURLOOP ROLLERCOASTER NEEDS MORE ATTRACTIONS MR TURNER SAID SO THE COMPANY WILL BEGIN ADDING MORE RIDES THAT COULD COST 5 MILLION TO 8 MILLION OVERALL MR TURNER SAID THE COMPANY'S RESULTS THUS FAR IN OCTOBER HAVE IMPROVED TO SLIGHTLY OUTPACE YEAREARLIER RESULTS THE FIRST FOUR DAYS OF LUXOR'S OPENING HAVE BEEN STRONG MR TURNER SAID ALTHOUGH HE DID NOT GIVE SPECIFIC SLOT REVENUE NUMBERS OR OTHER FIGURES EXCEPT TO SAY MORE THAN 100000 VISITORS CAME TO SEE THE 390 MILLION CASINOHOTEL DURING ITS OPENING WEEKEND THE CASINO'S HIGHTECH ATTRACTIONS HAVE RUN INTO SOME OPERATING PROBLEMS BUT ARE EXPECTED TO BE IN FULL OPERATION BY OCT 28 HE ADDED WILLARD BROWN AN ANALYST WITH DEAN WITTER REYNOLDS CUT THE STOCK TO ACCUMULATE FROM BUY BUT SAID THAT CIRCUS REMAINS WELLPOSITIONED TO TAKE ADVANTAGE OF THE EXPANDING GLOBAL MARKET FOR CASINO ENTERTAINMENT THESE THINGS TEND TO BE EPHEMERAL AND CLEARLY CIRCUS IS STILL ONE OF THE JUGGERNAUTS OF THIS INDUSTRY HE SAID THE SELLOFF OF CIRCUS CIRCUS STOCK PROMPTED A BROAD ROUND OF PROFITTAKING IN OTHER CASINO ISSUES ACCELERATING A MODEST SELLING TREND THAT BEGAN LAST WEEK JEFF LOGSDON AN ANALYST WITH SEIDLER COS SAID THE SELLOFF IS SO TYPICAL OF INDUSTRIES THAT ARE MOMENTUMDRIVEN ADDING THAT TRADERS HAVE BEEN ACCUMULATING STOCK IN GAMBLING COMPANIES BEFORE THE DEBUT OF NEW PROJECTS AND SELLING OFF AFTER THEY OPEN MIRAGE RESORTS INC'S STOCK DROPPED 3625 OR 65 TO CLOSE AT 52375 WHILE PROMUS COS SAW ITS SHARES DROP 4 OR 51 TO 74625 IN COMPOSITE TRADING HILTON HOTELS CORP FELL 175 OR 36 TO 46875 AND MGM GRAND INC FELL 125 OR 28 TO CLOSE AT 4275 ON THE BIG BOARD 9310210011 931021 INTERNATIONAL FRENCH INDUSTRIAL OUTPUT UP PARIS INDUSTRIAL OUTPUT IN FRANCE ROSE IN THE MONTHS OF JULY AND AUGUST REVERSING A SLIGHT DECLINE IN JUNE THE SEASONALLY ADJUSTED 13 RISE WHICH FOLLOWED A REVISED 01 DROP IN JUNE SURPRISED ECONOMISTS WHO HAD BEEN EXPECTING TO SEE PRODUCTION CONTINUING TO SAG DURING THE SUMMER MONTHS WHEN MUCH OF FRANCE IS VACATIONING THE MONTH OF AUGUST IS INCLUDED IN THE JULY FIGURE BECAUSE OF THE SUMMER HOLIDAY 9310210010 931021 INTELLIGENT ELECTRONICS INC CINCINNATI INTELLIGENT ELECTRONICS INC AN EXTON PA COMPUTER WHOLESALER INCREASED ITS HOLDINGS IN ITS LARGEST CUSTOMER FUTURE NOW INC TO 31 THE COMPANY PURCHASED 681447 SHARES FOR 87 MILLION OF STOCK INTELLIGENT ELECTRONICS HAD OWNED 31 OF FUTURE NOW INC PRIOR TO AN OFFERING OF SHARES EARLIER THIS YEAR 9310210009 931021 REVIEW & OUTLOOK EDITORIAL ASIDES TIME FOR A RAISE OMB DIRECTOR LEON PANETTA HAD TO GO UP TO CAPITOL HILL YESTERDAY TO DEFEND THE ADMINISTRATION'S VIEW THAT NAFTA'S LOWER TARIFFS WILL COST THE US 25 BILLION IN LOST CUSTOMS REVENUE SO THEY HAVE TO JACK UP SURTAXES ON AIRLINE AND CRUISE PASSENGERS PRESSED MR PANETTA TRIED THOSE FEES WERE PUT INTO EFFECT IN 1986 AND HAVE NEVER BEEN INCREASED SINCE 1986 SOME JUSTIFICATION 9310210007 931021 BUSINESS BRIEF PACIFIC GAS & ELECTRIC CO THIRDPERIOD EARNINGS ROSE 12 AS REVENUE GAINED 53 PACIFIC GAS & ELECTRIC CO REPORTED 12 HIGHER THIRDQUARTER NET INCOME OF 3561 MILLION OR 79 CENTS A SHARE DESPITE A 144 MILLION CHARGE AGAINST EARNINGS THE SAN FRANCISCOBASED UTILITY'S YEAREARLIER NET INCOME WAS 3519 MILLION OR 78 CENTS A SHARE REVENUE ROSE 53 TO 295 BILLION FROM 280 BILLION THE CHARGE EQUAL TO 24 CENTS A SHARE REFLECTED REDUCTIONS IN UNION JOBS RESTRUCTURING OF CANADIAN GAS CONTRACTS AND HIGHER TAXES SECONDQUARTER PROFIT WAS REDUCED BY A 141 MILLION CHARGE FOR WORKFORCE REDUCTIONS IN MANAGEMENT PG&E HAS SAID CHANGES IN THE ENERGYUTILITY BUSINESS AND THE CONTINUED WEAKNESS IN CALIFORNIA'S ECONOMY HAVE FORCED IT TO REORGANIZE THE UTILITY PREVIOUSLY SAID IT PLANNED TO CUT ITS 26600PERSON WORK FORCE BY ABOUT 3000 JOBS 9310210006 931021 HEARD ON THE STREET PHILIP MORRIS DOUSED BY MARLBORO PRICE CUTS MAY BE POISED TO CATCH FIRE IN THE NEXT YEAR BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PHILIP MORRIS MAY NO LONGER BE HAZARDOUS TO YOUR FINANCIAL HEALTH OR SO SAYS SANFORD BERNSTEIN'S TOBACCO ANALYST GARY BLACK FORMERLY ONE OF THE MOST ARDENT BEARS ON THE STOCK HE NOW BELIEVES THE STOCK HIT BOTTOM IN THE MID40S AND IS HEADED TO BETWEEN 60 AND 65 WITHIN THE NEXT YEAR MR BLACK RECKONS THAT PHILIP MORRIS IS SHOWING SIGNS THAT IT WILL BEGIN EMPHASIZING PROFITS AGAIN INSTEAD OF MARKET SHARE WHICH WAS THE FACTOR BEHIND ITS DECISION TO CUT PRICES ON US CIGARETTES THAT MAY EVEN LEAD THE COMPANY TO RAISE PRICES ON ITS CIGARETTES BY ABOUT 12 NEXT YEAR HE SAYS HE FIGURES EVEN AN INCREASE OF 10 CENTS A PACK WOULD ADD 45 CENTS A SHARE TO HIS 1994 EARNINGS ESTIMATE OF 5 THAT'S MUSIC TO THE EARS OF PHILIP MORRIS SHAREHOLDERS WHO HAVE BEEN HUMBLED BY THE STOCK'S FREEFALL SINCE MARLBORO FRIDAY THE NOWNOTORIOUS DAY LAST APRIL WHEN PHILIP MORRIS ANNOUNCED PLANS TO CUT THE PRICE OF THE CIGARETTES BY 40 CENTS A PACK PRIOR TO THAT PHILIP MORRIS'S STOCK WAS TRADING IN THE MID60S YESTERDAY IT CLOSED AT 51 7/8 DOWN 5/8 CENTS IT MAY SEEM A STRANGE TIME TO BE SINGING PHILIP MORRIS'S PRAISES ON TUESDAY THE STOCK SUFFERED A DOUBLE WHAMMY OF BAD NEWS THE COMPANY REPORTED THAT EARNINGS FOR THE THIRD QUARTER FELL 25 AND THE CLINTON ADMINISTRATION SAID IT PLANS TO BOOST THE TOBACCO TAX BY 75 CENTS INVESTORS FLED THE STOCK PUSHING IT DOWN 1 1/8 TO 52 3/4 AT TUESDAY'S CLOSE BUT SAVVY INVESTORS SAY THAT THE RECENT DROP IN THE STOCK ALMOST 4 IN TWO DAYS ONLY MAKES IT A BETTER BUY SOME EVEN SAY IT GIVES INVESTORS WHO MISSED THE RECENT RUNUP IN THE STOCK ANOTHER OPPORTUNITY TO JUMP INTO PHILIP MORRIS BEFORE IT TAKES OFF AGAIN BEFORE TUESDAY'S NEWS THE STOCK WAS UP 14 IN THE PAST TWO WEEKS I DON'T THINK THE EARNINGS WERE SO BAD SAYS STEPHEN O'NEIL HEAD TRADER AT THE INVESTMENTMANAGEMENT ARM OF ATLANTIC RICHFIELD IT WILL TAKE A FEW MORE DAYS TO SHAKE OUT THE LAST OF THE WEAK SISTERS HE SAYS REFERRING TO WEAKKNEED INVESTORS AND THEN THE STOCK WILL GO HE SAYS THAT IN THE LAST WEEK AARCO BOUGHT A MEANINGFUL POSITION IN OPTIONS TO BUY PHILIP MORRIS STOCK THE TWO BEST REASONS TO BUY THE STOCK ARE THAT IT IS CHEAP AND IT'S BEEN SOLD OUT BY MOST MUTUAL FUNDS SAYS THOMAS REILLY PORTFOLIO MANAGER OF PUTNAM INVESTMENTS' GEORGE PUTNAM FUND HE NOTES THAT PHILIP MORRIS IS CURRENTLY TRADING AT A MULTIPLE OF BETWEEN 10 AND 11 TIMES EARNINGS WITH A 5 DIVIDEND YIELD WITH OWNERSHIP OF THE STOCK RELATIVELY THIN SAYS MR REILLY WHERE CAN IT GO BUT UP HE SAYS HE HAS BEEN ADDING TO THE FUND'S HOLDINGS IN PHILIP MORRIS IN RECENT WEEKS ALONG WITH THE STOCKS OF OTHER CONSUMER NONDURABLES NOT EVERYBODY THINKS THE STOCK HAS HIT BOTTOM LET'S NOT FORGET THAT THIS IS A TOBACCO COMPANY SAYS MORRIS MARK WHO RUNS NEW YORK HEDGE FUND MARK ASSET THERE ARE MORE AND MORE PLACES YOU CAN'T SMOKE AND THE INDUSTRY HAS BECOME AN EASY POLITICAL TARGET HE SAYS BUT SANFORD BERNSTEIN'S MR BLACK WHOSE FORMERLY NEGATIVE VIEW ON PHILIP MORRIS CONTRIBUTED TO INVESTORS' TURN AGAINST THE STOCK EARLIER IN THE YEAR SAYS THERE ARE A HOST OF REASONS FOR BEARISH INVESTORS TO DO AN ABOUTFACE HE SAYS MANY OF THE NEGATIVE DEVELOPMENTS FOR THE INDUSTRY HAVE ALREADY BEEN FACTORED INTO THE STOCK MOREOVER EARNINGS PER SHARE WILL LIKELY BE AROUND 5 NEXT YEAR RATHER THAN HIS EARLIER ESTIMATE OF 485 MAINLY BECAUSE OF FIRMER PRICES ON CIGARETTES AND LOWER INTEREST EXPENSE HE SAYS MR BLACK THINKS PHILIP MORRIS'S EARNINGS WILL INCREASE 12 NEXT YEAR FUELED BY BOOMING BUSINESS ABROAD THE ANNUAL GROWTH RATE FOR THE INTERNATIONAL BUSINESS IS 15 HE SAYS AFTER PHILIP MORRIS DISAPPOINTED INVESTORS BY NOT RAISING ITS DIVIDEND AT ITS AUGUST BOARD MEETING MR BLACK SAYS HE THINKS THE DIVIDEND WILL BE INCREASED NOMINALLY IN NOVEMBER ADD TO THAT HIS PREDICTION THAT THE COMPANY WILL TAKE A SUBSTANTIAL RESTRUCTURING CHARGE AT YEAR END AND HE SAYS THE STOCK IS IRRESISTIBLE MR BLACK EXPECTS THIS YEAR TO BE VIEWED AS A BIG BATH TYPE OF YEAR ANY EXPENSES THAT CAN BE SHIFTED FROM FIRST QUARTER 1994 TO FOURTH QUARTER 1993 WILL LIKELY HELP VALUATION HE SAYS INVESTORS WHO WERE HOLDING PHILIP MORRIS STOCK IN APRIL WOULD PROBABLY AGREE THAT 1993 HAS BEEN A BIG BATH BUT IF MR BLACK IS CORRECT IN HIS PREDICTIONS PHILIP MORRIS'S SHAREHOLDERS MAY SOON FIND THEY ARE NO LONGER UNDERWATER 9310210005 931021 WEDNESDAY'S MARKETS STOCK PRICES CLOSE MIXED BONDS CLIMB SECTORSHIFTING CITED BY ANALYSTS AS CAUSE FOR EQUITY DOLDRUMS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS CONTINUED SOME STOCKMARKET PROFITTAKING BUT ALSO SNATCHED UP LAGGING SHARES OF ECONOMICALLY SENSITIVE COMPANIES LEAVING PRICES MIXED THE DOLLAR WAS MIXED AS WELL BUT BOND PRICES ROSE THE DOW JONES INDUSTRIAL AVERAGE GAINED 978 POINTS TO 364510 STANDARD & POOR'S 500STOCK INDEX LOST 014 TO 46607 AND THE NASDAQ COMPOSITE INDEX EASED 046 TO 76825 ANALYSTS SAID THE CURRENT SPATE OF EARNINGS REPORTS HAS BEEN MOSTLY UPBEAT BUT THE STOCK MARKET HASN'T GAINED BECAUSE INVESTORS ARE SHIFTING HEAVILY AMONG SECTORS THE LATEST BENEFICIARIES OF INVESTORS' SWIFTLY CHANGING TASTES HAVE BEEN ECONOMICALLY SENSITIVE STOCKS SINCE LAST FRIDAY THE MORGAN STANLEY CYCLICAL INDEX HAS CLIMBED NEARLY 1 WHILE ITS CONSUMER INDEX HAS SLID 12 CYCLICAL STOCKS HAVE COME OUT FROM UNDERNEATH THE SELLING PRESSURE WHICH SEEMED TO REACH ITS PEAK LAST FRIDAY SAID THOMAS MCMANUS A US MARKET STRATEGIST AT MORGAN STANLEY MR MCMANUS NOTED THAT WITHIN THE ECONOMICALLY SENSITIVE GROUP THE STRONG PERFORMERS ARE CYCLICAL CONSUMER DURABLES SUCH AS AUTOS FURNITURE AND APPLIANCES THE UNDERPERFORMERS ARE THE PRICESENSITIVE COMMODITY CYCLICALS SUCH AS PAPERS CHEMICALS AND METALS THE GAINS IN ECONOMICALLY SENSITIVE STOCKS HAVEN'T LIFTED THE OVERALL MARKET PARTLY BECAUSE THEY HAVE BEEN OFFSET BY SELLING OF CONSUMER STOCKS BEFORE THE SELLOFF IN CONSUMERS THE MORGAN STANLEY CONSUMER INDEX HAD CLIMBED 6 BETWEEN OCT 4 AND OCT 15 THAT RALLY FOLLOWED A LONG SLUMP AMONG THE CONSUMER DURABLES SUCH AS FOODS TOBACCO AND DRUGS OVERSEAS STOCK MARKETS IN ENGLAND GERMANY AND THE NETHERLANDS HIT RECORDS AS INVESTORS BET THAT THE BUNDESBANK WILL SOON CUT INTEREST RATES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 022 TO 11343 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3057 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1112 ISSUES FELL AND 920 ROSE BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 1/4 POINT OR MORE THAN 250 FOR EACH 1000 FACE AMOUNT TO YIELD 582 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16395 MARKS AND 10730 YEN COMPARED WITH 16409 MARKS AND 10720 YEN TUESDAY 9310210004 931021 WHO'S NEWS REPUBLIC NEW YORK CORP REPUBLIC NEW YORK CORP NEW YORK LESLIE E BAINS WAS NAMED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT AT THIS BANK HOLDING COMPANY'S REPUBLIC NATIONAL BANK OF NEW YORK UNIT MS BAINS 50 YEARS OLD WAS FORMERLY MANAGING DIRECTOR GLOBAL PRIVATE BANKING GROUP FOR CITICORP'S CITIBANK UNIT 9310210003 931021 ELECTRONIC ARTS NET JUMPS 35 SAN MATEO CALIF ELECTRONIC ARTS INC SAID FISCAL SECONDQUARTER PROFIT JUMPED 35 TO 8 MILLION OR 16 CENTS A SHARE ON STRONG SALES ACROSS THE BOARD OF ITS COMPUTER GAMES THAT COMPARES WITH 52 MILLION OR 11 CENTS A SHARE A YEAR EARLIER THE COMPANY SAID REVENUE FOR THE PERIOD ENDED SEPT 30 ROSE 33 TO 82 MILLION FROM 546 MILLION ELECTRONIC ARTS INC'S FISCAL SECONDQUARTER EARNINGS ROSE 54 TO 8 MILLION OR 16 CENTS A SHARE FROM 52 MILLION OR 11 CENTS A SHARE A YEAR EARLIER WHILE REVENUE GREW 50 TO 82 MILLION FROM 546 MILLION AN ARTICLE THURSDAY INCORRECTLY STATED THAT PROFIT ROSE 35 AND REVENUE INCREASED 33 FOR THE QUARTER 9310210002 931021 FOREIGN EXCHANGE DOLLAR ENDS OFF A BIT AGAINST THE MARK GERMAN RATECUT HOPES SEEN OVERBLOWN BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR ENDED OFF A BIT AGAINST THE MARK WEDNESDAY AFTER STRONG EARLY GAINS WERE WIPED OUT WHEN THE MARKET DECIDED EXPECTATIONS OF LOWER GERMAN INTEREST RATES WERE OVERBLOWN AND THE US CURRENCY ALSO FELL AGAINST ITS CANADIAN COUNTERPART WHICH GAINED AS SOME PLAYERS CONCLUDED THAT IT HAD BEEN SOLD FAR ENOUGH IN THE RUN UP TO MONDAY'S NATIONAL ELECTION LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16395 MARKS DOWN FROM 16409 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10730 YEN UP A BIT FROM 10720 YEN STERLING WAS TRADING AT 14947 UP FROM 14897 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10775 YEN AND AT 16400 MARKS TRADERS SAID THE BUNDESBANK REMAINED IN THE SPOTLIGHT WEDNESDAY AS PLAYERS SCRUTINIZED A NUMBER OF EVENTS IN HOPES OF DIVINING THE CENTRAL BANK'S NEXT MOVE ON GERMANY'S OFFICIAL INTEREST RATES THEY NOTED THAT NEWS DURING EUROPEAN TRADING OF A SLIGHT REDUCTION IN GERMAN MONEYMARKET INTEREST RATES AND AN EASING IN GERMAN MONEYSUPPLY GROWTH DURING SEPTEMBER BOTH RAISED THE POSSIBILITY THAT THE BUNDESBANK'S 625 DISCOUNT RATE AND 725 LOMBARD RATE COULD BE SET TO FALL THAT PROMPTED SOME ENTHUSIASTIC DOLLAR BUYING DURING THE EUROPEAN SESSION BOOSTING THE DOLLAR TO A HIGH OF 16515 MARKS BUT WHEN NORTH AMERICAN TRADERS ENTERED THE MARKET WITH A MORE SKEPTICAL VIEW INVESTORS BEGAN TO CASH IN ON THE DOLLAR'S RISE EASING IT BACK DOWN DURING THE REST OF THE SESSION TRADERS ARGUED THAT THE CUT IN THE MINIMUM RATE ACCEPTED BY THE BUNDESBANK AT ITS SECURITIESREPURCHASE OPERATION TO 667 FROM 670 WASN'T SHARP ENOUGH TO INDICATE THAT THE CENTRAL BANK'S POLICYMAKING COUNCIL WILL LOWER OFFICIAL INTEREST RATES AT ITS FORTNIGHTLY MEETING THURSDAY THE SOCALLED REPO RATE IS THE BANK'S PREFERRED TOOL FOR ADJUSTING DOMESTIC MONEYMARKET RATES THEY ADDED THAT ALTHOUGH GROWTH IN GERMANY'S M3 MONEY SUPPLY SLOWED TO AN ANNUAL RATE OF 7 DURING THE FIRST NINE MONTHS OF THIS YEAR FROM 72 IN THE EIGHT MONTHS THROUGH AUGUST THE CHANGE WASN'T LIKELY TO BE SUFFICIENT TO PERSUADE THE INFLATIONPHOBIC BUNDESBANK TO EASE RIGHT AWAY THE M3 WAS SORT OF NEUTRAL AND THE REPO WAS AS EXPECTED SAID PAUL FARRELL A VICE PRESIDENT AT CHASE MANHATTAN BANK IN NEW YORK YOU WOULD HAVE THOUGHT YOU WOULD SEE THE MARK STRENGTHEN RATHER TRADERS REPORTED THAT BUYING INTEREST IN THE DOLLAR REMAINED KEEN THROUGHOUT THE DAY EVEN AS LATE PROFITTAKING ERODED THE DOLLAR'S EARLY GAINS THEY ADDED THAT THE US CURRENCY SEEMS TO BE BENEFITING FROM NEW HOPES THAT THE DOLLAR MAY FINALLY BE BEGINNING THE PUSH HIGHER THAN MANY PARTICIPANTS HAVE LONG EXPECTED IN THE BACK OF THEIR MINDS PEOPLE HAVE BEEN EXPECTING THE DOLLAR TO MOVE HIGHER SAID JAY TUCKER DIRECTOR OF FOREIGN EXCHANGE AT FIRST BOSTON CORP IN NEW YORK NOBODY REALLY WANTS TO MISS IT 9310210001 931021 BUSINESS BRIEF SUPERMAC TECHNOLOGY INC THIRDQUARTER NET ROSE 76 ON 86 JUMP IN REVENUE SUPERMAC TECHNOLOGY INC SAID STRONG SALES ACROSS PRODUCT LINES PUSHED UP THIRDQUARTER NET INCOME 76 TO 27 MILLION OR 30 CENTS A SHARE COMPARED WITH 16 MILLION OR 20 CENTS A SHARE A YEAR AGO THE SUNNYVALE CALIF MAKER OF GRAPHIC SYSTEMS FOR PERSONAL COMPUTERS SAID REVENUE ROSE 86 TO 592 MILLION FROM 319 MILLION DESPITE THE REPORT SUPERMAC SHARES FELL 1 OR 56 TO 1675 IN NASDAQ TRADING 9310210187 930921 THE CLINTON HEALTH PLAN WHITE HOUSE PUTS THE SQUEEZE ON MEDICAL SPECIALISTS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION SAYS IT WANTS HALF OF ALL NEW DOCTORS TO DEVOTE THEMSELVES TO PATIENTS' ALLAROUND PRIMARY CARE BUT MEDICAL STUDENTS OVERWHELMINGLY HAVE BEEN CHOOSING TO BECOME SPECIALISTS DRAWN BY GREATER PAY AND PRESTIGE MAKING THE SPECIALIST TRACK EVEN MORE DESIRABLE IS THE DIFFICULTY GENERALISTS FACE IN KEEPING UP WITH THE INCREASING COMPLEXITY OF MEDICINE MEDICAL SCHOOLS AND TEACHING HOSPITALS SAY MR CLINTON'S TRAINING GOAL FACES BIG OBSTACLES FOR YEARS MEDICAL EDUCATORS HAVE MADE LOWKEY EFFORTS TO DIRECT MORE STUDENTS INTO GENERAL CARE WITH LITTLE SUCCESS THIS SUMMER THE AMERICAN ASSOCIATION OF MEDICAL COLLEGES FOUND THAT 807 OF NEW GRADUATES PLAN TO BE SPECIALISTS WHILE THAT IS DOWN SLIGHTLY FROM 854 IN 1992 IT IS FAR HIGHER THAN A DECADE AGO IT'S HARD TO CRITICIZE YOUNG PEOPLE FOR MAKING THOSE KINDS OF CHOICES SAYS JORDAN COHEN DEAN OF THE MEDICAL SCHOOL AT THE STATE UNIVERSITY OF NEW YORK STONY BROOK MEDIAN SALARIES FOR SPECIALTIES SUCH AS CARDIAC SURGERY TOP 240000 A YEAR DOUBLE WHAT A FAMILY DOCTOR CAN EXPECT TO EARN HE NOTES IN ADDITION RAPID BREAKTHROUGHS IN SUCH FIELDS AS THERAPEUTIC RADIOLOGY ARE ATTRACTING STUDENTS TO SPECIALTIES HE ADDS IN THE DRAFT OF ITS HEALTH BILL THE WHITE HOUSE IS NUDGING MEDICAL SCHOOLS TO DO MORE TO PROMOTE PRIMARYCARE CAREERS THE ADMINISTRATION ALSO PROPOSES TO SET NATIONWIDE QUOTAS FOR THE RESIDENCY POSITIONS THAT YOUNG DOCTORS TAKE AT TEACHING HOSPITALS TO COMPLETE THEIR TRAINING IT PROPOSES TO CREATE 10 REGIONAL REVIEW BOARDS THAT WOULD ADMINISTER RESIDENCY QUOTAS ON A PROGRAMBYPROGRAM BASIS THESE QUOTAS WOULD EXPAND 7 A YEAR FOR PRIMARYCARE POSITIONS AND SHRINK 10 A YEAR FOR SPECIALISTS' SLOTS UNTIL THE US IN ABOUT THE YEAR 2000 REACHES A 50/50 BALANCE IN THE TRAINING OF NEW PRIMARYCARE DOCTORS AND SPECIALISTS TEACHING HOSPITALS THAT TRIED TO DEFY THESE GUIDELINES WOULD LOSE FEDERAL FUNDING MANY MEDICAL EDUCATORS ARE WARY OF THE ADMINISTRATION'S APPROACH LAST MONTH A PANEL OF MEDICAL EDUCATORS AND HEALTHCARE EXPERTS THE COUNCIL ON GRADUATE MEDICAL EDUCATION ENDORSED THE 50/50 RATIO BUT DIDN'T SPELL OUT A TIMETABLE FOR ACHIEVING IT TRYING TO MEET THAT GOAL THIS DECADE IS AWFULLY AMBITIOUS SAYS SUNY'S DR COHEN SUNY/STONY BROOK HAS TRIED TO BUILD UP A PRIMARYCARE CAREER TRACK INCLUDING EXPOSING MEDICAL STUDENTS TO TOP FAMILY DOCTORS AS MENTORS EVEN SO ONLY ABOUT 30 OF SUNY/STONY BROOK GRADUATES CHOOSE GENERALIST CAREERS I'M COMFORTABLE WITH TRYING TO TRAIN MORE GENERALISTS AND WITH ENCOURAGING ALL KINDS OF SPECIALISTS TO CULTIVATE THE ATTITUDES THAT CONTRIBUTE TO CONTINUITY OF CARE SAYS DANIEL TOSTESON DEAN OF THE HARVARD MEDICAL SCHOOL BUT THERE'S A COERCIVE ELEMENT TO SAYING THAT 50 OF ALL PEOPLE ENTERING MEDICINE SHOULD END UP IN PRIMARY CARE WE DON'T DO THAT IN ENGINEERING OR LAW EQUALLY SKITTISH IS GERARD BURROW DEAN OF YALE UNIVERSITY'S MEDICAL SCHOOL IT'S NOT THAT WE'RE AGAINST PRIMARY CARE DR BURROW SAYS BUT IT WOULD BE A TRAGEDY TO DISASSEMBLE ONE OF THE BEST CARDIOVASCULAR PROGRAMS IN THE COUNTRY HERE JUST TO PRODUCE MORE PRIMARYCARE DOCTORS YOU CAN'T FORCE PEOPLE TO GO INTO PRIMARY CARE DR BURROW OBSERVES LAST YEAR 16 YALE STUDENTS COMPLETED A SPECIAL THREEYEAR PROGRAM THAT EMPHASIZES FAMILY MEDICINE AND PEDIATRICS BUT 14 OF THEM ANNOUNCED THEY HAD CHANGED THEIR CAREER GOALS AND WANTED TO BECOME SPECIALISTS TOP MEDICAL CENTERS SAY THEY HOPE STRICT QUOTAS WON'T BE APPLIED TO THEIR STRONGEST SPECIALIST PROGRAMS WHICH THEY CONTEND ARE OF VITAL NATIONAL IMPORTANCE THE WHITE HOUSE HAS LEFT THE DOOR OPEN FOR SOME LOCAL FLEXIBILITY IN THIS AREA AS LONG AS THE OVERALL TARGET OF 50 PRIMARYCARE DOCTORS IS MET BUT EVEN THAT APPROACH DOESN'T SOOTHE SOME TOP SPECIALISTS OTHER PARTS OF THE CLINTON HEALTH PACKAGE WOULD SCALE BACK A BIG SUBSIDY FOR TEACHING HOSPITALS THAT CURRENTLY COMES OUT OF THE MEDICARE PROGRAM FOR THE ELDERLY THE WHITE HOUSE PROPOSES TO REPLACE THAT MONEY WITH FUNDS COLLECTED FROM NEW HEALTHINSURANCE BUYING COOPERATIVES BUT MAJOR MEDICAL CENTERS WORRY THAT THE GOVERNMENT WILL REIN IN ACADEMICALLY EXCITING BUT HIGHLY SPECIALIZED MEDICAL RESEARCH AND TRAINING IN ADDITION POLITICAL TUSSLES ARE LIKELY TO INTRUDE ON DECISIONS ABOUT WHICH RESIDENCY PROGRAMS TO KEEP AND WHICH TO CUT CONTENDS STEPHEN LIPSON CHAIRMAN OF THE ORTHOPEDIC SURGERY DEPARTMENT AT BETH ISRAEL HOSPITAL IN BOSTON AND A PROFESSOR AT HARVARD'S MEDICAL SCHOOL HE IS ESPECIALLY CONCERNED THAT SMALL PROGRAMS IN THINLY POPULATED STATES WILL BE KEPT ALIVE FOR POLITICAL REASONS FORCING GREATER CUTS AT MAJOR TEACHING CENTERS ANOTHER POINT OF CONTENTION INVOLVES WHAT TYPES OF DOCTORS SHOULD BE REGARDED AS MEETING THE COUNTRY'S NEED FOR BASIC CARE MEDICAL EDUCATORS CONTEND THAT SOME TYPES OF SPECIALISTS SUCH AS GENERAL SURGEONS AND OBSTETRICIANS OFTEN PROVIDE BASIC MEDICAL CARE IN UNDERSERVED AREAS AND SHOULD BE COUNTED WITHIN THE GOVERNMENT'S CATEGORIES OF DESIRABLE DOCTORS HENRY FOSTER DEAN OF THE MEDICAL SCHOOL AT MEHARRY MEDICAL COLLEGE IN NASHVILLE TENN SAYS ABOUT 30 OF MEHARRY'S GRADUATING CLASS EACH YEAR GOES INTO PRIMARY CARE ANOTHER 15 TO 20 OPTS FOR GENERAL SURGERY AND OBSTETRICS MANY OF THOSE SPECIALISTS HE OBSERVES END UP PRACTICING IN RURAL AND INNERCITY AREAS BECAUSE SO MANY TOP MEDICAL SPECIALISTS ARE UNEASY ABOUT PRIMARYCARE QUOTAS WINNING THESE PHYSICIANS' SUPPORT IS ONE OF THE HARDEST CHALLENGES IN BOOSTING PRODUCTION OF GENERALIST DOCTORS SAYS HAILE DEBAS DEAN OF THE MEDICAL SCHOOL AT THE UNIVERSITY OF CALIFORNIA SAN FRANCISCO DR DEBAS SAYS HIS INSTITUTION IN THE PAST FIVE YEARS HAS BOOSTED ITS OUTPUT OF GENERALISTS TO 45 FROM 30 BUT IS BOGGED DOWN NOW IN HARD NEGOTIATIONS ABOUT CUTBACKS IN SPECIFIC SPECIALTY PROGRAMS THE LAST LITTLE BIT IS A LOT HARDER DR DEBAS SAYS SEE RELATED LETTER LETTERS TO THE EDITOR CURTAILING SPECIALISTS COULD BE DISASTROUS WSJ OCT 21 1993 9309210149 YY93 MM10 9310210183 930916 DOGMA IN DOUBT SOME QUESTION EXTENT OF LEAD'S RISK TO KIDS NEED TO REMOVE PAINT DATA ON PERIL ARE AMBIGUOUS STRICT ABATEMENT CAN CUT SUPPLY OF RENTAL HOUSING BLOOD LEVELS ARE WAY DOWN BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL FOR MANY PARENTS LEAD TOPS THE LIST OF SCARY THINGS AND NO WONDER LEAD POISONING IS YOUNGSTERS' MOST DEVASTATING ENVIRONMENTAL DISEASE SAY FEDERAL OFFICIALS LEAD HURTS ONE OF SIX US CHILDREN LOWERING IQ AND INDUCING HYPERACTIVITY DECLARES THE ENVIRONMENTAL DEFENSE FUND MEDICAL POLICY MAKERS ARE PUSHING HARD FOR UNIVERSAL CHILDHOOD BLOOD TESTS FOR LEAD REPORTS GIVEN TO A HOUSE SUBCOMMITTEE HEARING YESTERDAY STATE THAT LEAD LOOMS AS A HUGE PROBLEM FOR SCHOOLS WITH THOUSANDS OF NEW YORK CLASSROOMS POSING HAZARDS REMOVING LEAD PAINT IN HOUSES HAS BECOME A BOOMING BUSINESS AND LEAD IS FAST REPLACING ASBESTOS AS THE TOXIC TORT KING THE FLOODGATES ARE OPEN FOR LEAD LAWSUITS SAYS A BOSTON ATTORNEY WHOSE FIRM HAS FILED HUNDREDS OF THEM BUT EVEN AS PRESSURES MOUNT TO GET THE LEAD OUT EVIDENCE IS EMERGING THAT ACTIVISTS HAVE OVERSTATED THE THREAT IN FACT US CITIZENS' AVERAGE LEAD LEVELS HAVE PLUMMETED MORE THAN TWOTHIRDS SINCE THE MID1970S FOLLOWING BANS ON LEAD IN PAINT AND GASOLINE LEAD POISONING IS MAINLY A PROBLEM OF THE PAST SAYS SERGIO PIOMELLI A PEDIATRICIAN AT COLUMBIA PRESBYTERIAN MEDICAL CENTER IN NEW YORK AND AN ADVISER ON LEAD TO THE FEDERAL CENTERS FOR DISEASE CONTROL AND PREVENTION HE ADDS THAT WHILE LEAD STILL NEEDS ATTENTION LOTS OF OTHER CHILDREN'S PROBLEMS ARE MORE URGENT AT KAISER PERMANENTE MEDICAL CENTER IN OAKLAND CALIF EDGAR SCHOEN A SENIOR PEDIATRICIAN SAYS WE SEE MALNUTRITION HOMELESSNESS CHILD ABUSE LACK OF IMMUNIZATIONS VIOLENCE AND PEDIATRIC AIDS IN CHILDREN BUT WE HAVEN'T SEEN A CHILD SICK FROM LEAD POISONING FOR MANY YEARS MOREOVER RESEARCHERS DON'T KNOW WHETHER CHILDHOOD LEAD LEVELS WOULD BE SIGNIFICANTLY CUT BY WIDELY ABATING LEAD PAINT WHICH IS ONLY ONE OF SEVERAL SOURCES OF INGESTED LEAD IN MASSACHUSETTS A LAW THAT REQUIRES ABATING ALL DWELLINGS WITH CHILDREN UNDER SIX HAS DRAWN FIRE FROM CRITICS WHO SAY IT LEADS TO SKYROCKETING INSURANCE PREMIUMS PETTY LITIGATION DISCRIMINATION AGAINST RENTERS WITH CHILDREN AND A LOSS OF LOWINCOME HOUSING WHAT WOULD IT COST TO ABATE ALL THE LEAD PAINT IN THE US AS SOME ACTIVISTS DEMAND ESTIMATES START AT 300 BILLION WITH SUCH PROBLEMS AND COSTS A GROWING BAND OF SCIENTIFIC AND MEDICAL ICONOCLASTS QUESTIONS THE NEED FOR UNIVERSAL LEAD SCREENING AND MASSIVE ABATEMENT WHILE LEAD CERTAINLY DESERVES ATTENTION THEY ARGUE UNWARRANTED ALARM ABOUT IT IS FOSTERING DUBIOUS BLANKET APPROACHES TO IT THAT DEVOUR RESOURCES BETTER SPENT ON WORSE HAZARDS TO CHILDREN'S HEALTH IN MASSACHUSETTS RONALD JACOBS EXPERIENCED FIRSTHAND THE EFFECTS OF THE NATION'S MOST UNBENDING ANTILEAD LAW TWO YEARS AGO HE RETURNED FROM WORK TO FIND SKULLANDCROSSBONES SIGNS TACKED ON HIS DOORS A HOUSING INSPECTOR HAD FOUND LEAD PAINT IN HIS HOUSE IN TAUNTON SOUTH OF BOSTON I DIDN'T KNOW NOTHING ABOUT LEAD PAINT SAYS MR JACOBS A COOK HE SOON WAS EDUCATED SINCE TODDLERS LIVED IN TWO UPPERFLOOR RENTAL APARTMENTS MR JACOBS WAS TOLD HE HAD TO ABATE THE LEAD PAINT WHICH TYPICALLY ENTAILS REMOVING IT FROM CHILDREACHABLE SURFACES SUCH AS WINDOW CASINGS AND DOOR FRAMES THE INSPECTOR ALSO NOTIFIED HIS TENANTS THAT THEY COULD LEGALLY WITHHOLD RENT PENDING ABATEMENT THERE WAS NO EVIDENCE ANYONE IN THE HOUSE HAD HIGH LEAD LEVELS FROM THE OLD LEADED PAINT AND THE OLD PAINT IN THE HOUSE WAS COVERED BY NEWER UNLEADED PAINT BUT I HAD A NIGHTMARE ON MY HANDS SAYS MR JACOBS BANKS WOULDN'T LEND FOR THE 10000PLUS DELEADING BECAUSE HIS HOUSE'S VALUE HAD FALLEN SHARPLY PARTLY DUE TO POSSIBLE LEADPOISONING LAWSUITS SINCE MR JACOBS'S TENANTS STOPPED PAYING RENT HE FELL BEHIND ON HIS MORTGAGE RUNNING SHORT OF CASH MR JACOBS SAYS HE AND HIS WIFE OFTEN HUDDLED NEAR THE KITCHEN OVEN ON WINTER DAYS TO SAVE ON HEATING OIL EVENTUALLY HIS LOWER INCOME QUALIFIED HIM FOR A STATE DELEADING LOAN FOR STRAPPED PROPERTY OWNERS BUT DURING THE TWOWEEK ABATEMENT HE HAD TO PAY MOST OF HIS TENANTS' MOTEL AND FOOD BILLS NO ONE WAS ALLOWED TO STAY AT HOME DURING THE PROCESS MEANWHILE THIEVES BROKE IN APPARENTLY A WORKER LEFT A WINDOW OPEN AND TOOK THE JACOBSES' TELEVISION SET JEWELRY AND SPARE CASH NEAR FINANCIAL MELTDOWN MR JACOBS FILED FOR BANKRUPTCY PROTECTION FROM CREDITORS I DON'T LIKE TO STIFF PEOPLE HE SAYS BUT I GOT MY LIFE SAVINGS IN MY HOUSE IT WAS THE ONLY WAY TO SAVE IT ABATEMENT PROPONENTS DISMISS SUCH CASES AS THE MINOR COSTS OF STOPPING A TOXIC PLAGUE THE MASSACHUSETTS APPROACH IS PROBABLY THE BEST ONE IN THE COUNTRY SAYS HERBERT NEEDLEMAN A UNIVERSITY OF PITTSBURGH RESEARCHER DR NEEDLEMAN CHAIRMAN OF THE ALLIANCE TO END CHILDHOOD LEAD POISONING A LOBBYING GROUP SAYS THAT LEAD POISONING IS A HIGHFREQUENCY CHILDHOOD DISEASE AND THAT MANY CHILDREN ARE LIVING IN A SEA OF LEAD THE MASSACHUSETTS LAW'S MAIN PROBLEM HE SAYS IS OPPOSITION FROM LANDLORDS AND OTHER PEOPLE WHO DON'T WANT TO SPEND THE MONEY NO ONE DISAGREES THAT SOME LEVEL OF LEAD IN THE BODY IS HIGHLY TOXIC ESPECIALLY TO CHILDREN WHOSE DEVELOPING BRAINS ARE MOST VULNERABLE BUT IF LEAD CAUSES THE AMOUNT OF BRAIN DAMAGE POSITED BY LEAD ACTIVISTS SKEPTICS ASK WHY HAVEN'T CHILDREN'S AVERAGE IQS RISEN OVER THE PAST 20 YEARS AS LEAD LEVELS HAVE PLUNGED THAT'S A BAD QUESTION MAINTAINS SUE BINDER A LEADING CDC LEAD EXPERT TOO MANY THINGS AFFECT IQ TO TEASE OUT THE POSITIVE EFFECTS OF LOWER LEAD SHE SAYS A 1991 BLUEPRINT FOR FEDERAL ACTION OF WHICH DR BINDER WAS COAUTHOR CALLS FOR A NATIONAL ABATEMENT PROGRAM THAT EVENTUALLY WOULD ADDRESS ALL HOUSING WITH LEADBASED PAINT SOME 57 MILLION US HOUSING UNITS BUILT BEFORE 1978 THE EXPENSE OF SUCH AN EFFORT DETERS LAWMAKERS DESPITE THE REPORT'S ARGUMENT THAT BENEFITS LIKE LOWER COSTS OF MEDICAL CARE AND SPECIAL EDUCATION FOR LEADPOISONED CHILDREN WOULD FAR OUTWEIGH ITS COST LAST YEAR CONGRESS PASSED A LAW REQUIRING THAT PURCHASERS AND RENTERS OF PRE1978 HOUSING BE TOLD OF POSSIBLE LEAD HAZARDS STARTING IN 1995 AND CALLING FOR GRADUAL ABATEMENT OF FEDERALLY OWNED AND ASSISTED HOUSING STARTING WITH OLDER BUILDINGS SKEPTICS FRET THAT AS WITH ASBESTOS LITIGATION AND THE FEAR OF LITIGATION MAY SOON BECOME THE MAIN FACTOR DRIVING LEAD POLICYPROMPTING PROPERTY OWNERS TO PLUNGE INTO ILLADVISED ABATEMENTS OFTEN WASTING MONEY AND POTENTIALLY INCREASING THE RISK AS LEAD DUST IS STIRRED UP MASSACHUSETTS' EXPERIENCE ILLUSTRATES THE UNINTENDED EFFECTS STRICT ABATEMENT CAN CAUSE IN HOLYOKE FITCHBURG LAWRENCE AND OTHER TOWNS SOME MULTIFAMILY HOUSING WITH LEAD PAINT HAS BEEN ABANDONED WITH REALESTATE VALUES ALREADY HURT BY THE ECONOMY MANY LANDLORDS CAN'T GET HOMEEQUITY LOANS TO REMOVE LEAD PAINT THEIR PROPERTIES THEN BECOME UNRENTABLE AND THEY DEFAULT ON THEIR MORTGAGES BUT BANKS WON'T FORECLOSE AND SEIZE THE PROPERTIES DOING SO WOULD EXPOSE THEM TO POSSIBLE LEADPOISONING LAWSUITS THUS THE BUILDINGS REMAIN IN LIMBO EFFECTIVELY OWNERLESS THEY OFTEN DETERIORATE BEYOND REPAIR IN A YEAR OR TWO WE'VE TAKEN DOWN 130 BUILDINGS HERE OVER THE PAST YEAR THAT CONTAINED LEAD AND WERE ABANDONED SAYS VERONICA COLLINS DIRECTOR OF COMMUNITY DEVELOPMENT IN LAWRENCE RICHARD COURCHESNE WHO RUNS A NONPROFIT LOWINCOMEHOUSING CONCERN IN HOLYOKE SAYS WE CAN BOAST WE'RE THE LEADER IN LEAD PAINT BUT ULTIMATELY THE FAMILIES WE'RE TRYING TO TAKE CARE OF MAY FREEZE BECAUSE OF HOUSING ABANDONMENT LEAD ISN'T THE ONLY REASON BUT IT'S USUALLY THE STRAW THAT BREAKS THE CAMEL'S BACK OWNERS OF SINGLEFAMILY HOMES AREN'T EXEMPT MARY HINES FROM CHICOPEE SAYS THAT SOON AFTER A PRESCHOOL SCREENING PROGRAM SHOWED BORDERLINE ELEVATED LEAD IN HER DAUGHTER DANIELLE STATE OFFICIALS THREATENED TO TAKE DANIELLE AWAY THE HINESES STRAPPED FOR CASH AFTER BUYING THEIR FIRST HOUSE SAY THEY HAD IGNORED A STATE ORDER TO DELEAD BECAUSE THEIR DOCTOR SAID THAT DANIELLE'S LEAD ELEVATION WAS MINOR AND THAT THERE WAS NO WAY IT RESULTED FROM EXPOSURE AT THE WELLKEPT HOUSE THEY HAD JUST MOVED INTO THEY WOUND UP ABATING WITH A LOAN THAT IS NOW A HEAVY FINANCIAL BURDEN MS HINES SAYS IT WAS EXTREMELY TRAUMATIC WE FELT OUR DAUGHTER WAS IN NO DANGER MASSACHUSETTS RENTERS WITH CHILDREN UNDER SIX SAY THEY NOW HAVE TROUBLE FINDING PLACES TO LIVE LANDLORDS FEARING LAWSUITS AND UNABLE TO AFFORD LEADPAINT ABATEMENT OFTEN TURN THEM AWAY EVEN THOUGH THAT IS ILLEGAL UNDER A RARELY ENFORCED STATE LAW SOME EVEN TURN AWAY YOUNG COUPLES FEARING THEY WILL SOON HAVE CHILDREN THE SITUATION IS CREATING STRANGE BEDFELLOWS I FIND MYSELF SIDING WITH LANDLORDS SEEKING TO WEAKEN THE LEAD LAW SAYS ROBERT LIE A CAMBRIDGE RENTER WITH TWO YOUNG SONS WHO SAYS HE CAN'T FIND A GOOD APARTMENT IT'S ONE OF THOSE LAWS THAT'S SO PROGRESSIVE IT'S FASCIST THE LEGISLATURE IS CONSIDERING A PROPOSAL TO EASE THE ABATEMENT MANDATE IT COULD BE A GIANT STEP BACKWARDS SAYS STEPHANIE POLLACK OF A BOSTON ENVIRONMENTAL GROUP CALLED THE CONSERVATION LAW FOUNDATION MS POLLACK WHO ALSO SERVES ON THE NATIONAL CDC LEAD COMMITTEE MAINTAINS THE LAW HAS PREVENTED MANY CASES OF LEAD POISONING IN THE STATE BUT A LITTLEPUBLICIZED 1990 REPORT BY THE BOSTON OFFICE OF ENVIRONMENTAL AFFAIRS SUGGESTS THAT DELEADING HAS OFTEN BACKFIRED CALLED THE NOONAN REPORT IT EXAMINED A COMMON REMOVAL METHOD SCRAPING OFF LEAD PAINT THIS CAN SPREAD LEAD DUST SO WORKERS UNDER STUDY FOR THE REPORT SEALED OFF WORK AREAS WITH PLASTIC WHILE RUNNING POWERFUL AIR FILTERS TO SUCK UP DUST EVEN THIS ENHANCED METHOD AND TWO CLEANUPS LEFT DANGEROUS LEVELS OF LEAD DUST IN APARTMENTS THE STUDY SHOWED SIMILAR STUDIES IN OTHER PLACES OVER THE PAST DECADE SHOW THAT SCRAPING TORCHING OR CHEMICALLY STRIPPING LEAD PAINT OFTEN CAUSES CHILDREN'S BLOODLEAD LEVELS TO RISE SUCH METHODS ARE NOW AT THE BOTTOM OF THE LIST OF PREFERRED ABATEMENT TECHNIQUES SAYS JIM KECK A BALTIMORE ABATEMENT CONSULTANT WHO ALSO SITS ON THE CDC ADVISORY COMMITTEE MS POLLACK QUESTIONS THE NOONAN STUDY'S VALIDITY AND SAYS DELEADING METHODS HAVE IMPROVED BUT MASSACHUSETTS CONTRACTORS SAY MANY CUSTOMERS STILL CHOOSE SCRAPING BECAUSE IT IS CHEAPER THAN THE MAIN ALTERNATIVE WHICH INVOLVES REPLACING DOORS AND WINDOWS MOREOVER THE STATE DOESN'T REQUIRE TESTING FOR LEAD DUST AFTER DELEADING INSPECTORS OFTEN JUST EYEBALL THE PREMISES WHAT THAT MEANS FOR CHILDREN ISN'T CLEAR BUT THE NOONAN REPORT NOTES THAT ONE BOSTON SURVEY IN 1990 SHOWED THAT BLOOD LEAD ACTUALLY ROSE IN NINE OF 22 CHILDREN AFTER THEIR HOMES WERE DELEADED THE REPORT ADDS THAT THE RISK OF CHILDHOOD LEAD POISONING AFTER DELEADING HAS HISTORICALLY BEEN 40 AS WITH ASBESTOS THE TENDENCY IS FOR ABATERS WHO DO THE MOST CAREFUL WORK TO BE CONSISTENTLY UNDERBID BY OTHERS WHO ARE WILLING TO CUT CORNERS OR WORSE SAYS ONE ABATEMENT CONSULTANT EVEN CONTRACTORS I THOUGHT WERE TRUSTWORTHY HAVE HAD THEIR MOMENTS TRYING TO MEET THE BOTTOM LINE I WOULDN'T TRUST ANY OF THEM TO ABATE MY HOUSE UNLESS I WAS WATCHING THEM EVERY MINUTE JULIE NORTON AGREES A NEWTON MASS EPISCOPAL MINISTER AND MOTHER OF TWO SHE LIVES IN A HOUSE OWNED BY HER CHURCH AFTER HER SMALL SON AND DAUGHTER WERE FOUND IN AUGUST 1992 TO HAVE MODERATELY ELEVATED LEAD LEVELS THE CHURCH PAID 17000 TO HAVE THE HOUSE ABATED BUT OUR ATTEMPT TO MAKE THINGS BETTER MADE THINGS A WHOLE LOT WORSE SHE SAYS SOON AFTER THE ABATEMENT HER CHILDREN'S LEAD LEVELS SOARED REQUIRING A LONG SERIES OF HOSPITAL VISITS BLOOD TESTS AND INJECTIONS OF DRUGS TO LOWER THEM YOU HAVEN'T TRULY SUFFERED UNTIL YOU HAVE TO HOLD YOUR KIDS DOWN WHEN THEY'RE HYSTERICAL AND NEEDLES ARE BEING STUCK IN SHE SAYS MY DAUGHTER HOLLY HAS PICKED UP ON MY FEAR ABOUT THE LEAD POISONING AND WAKES UP SCREAMING FROM NIGHTMARES ABOUT THE INJECTIONS MS NORTON SAYS SHE CONSIDERED SUING THE ABATEMENT CONCERN BUT IT HAS GONE OUT OF BUSINESS RISING LEAD LEVELS IN CHILDREN AFTER DELEADING AREN'T NECESSARILY DUE TO DUST RELEASED BY THE PROCESS PROBLEMS CAN ALSO COME FROM OLD CARPETS FURNITURE FLOOR CREVICES AND OTHER PLACES LOADED WITH LONGACCUMULATED LEAD DUST STUDIES INDICATE RIGOROUS ABATEMENT CAN LOWER LEAD IN CHILDREN WHEN THEIR BLOOD LEAD IS HIGHLY ELEVATED IN SUCH CASES PAINT OFTEN IS THE CULPRIT BUT IN THE GREAT MAJORITY OF CHILDREN WHOSE BLOOD CONTAINS LEAD LEVELS ARE ONLY MODERATELY ELEVATED IN THOSE CASES THERE GENERALLY IS NO IDENTIFIABLE MAIN CULPRIT ONE REASON IS THAT TRACES OF LEAD CAN BE FOUND IN ANYTHING FROM PUBLICWATER SUPPLIES TO FOODS THAT HAVE PICKED UP DUST CONTAINING LEAD MORE IMPORTANT NUMEROUS STUDIES SHOW THAT CHILDREN INGEST MOST OF THEIR LEAD BY MOUTHING TOYS OR OTHER OBJECTS EXPOSED TO LEADLACED DUST IT'S RARE THAT A KID GETS POISONED BY EATING LEADPAINT CHIPS TODAY SAYS MICHAEL WEITZMAN A UNIVERSITY OF ROCHESTER LEAD RESEARCHER STUDIES ALSO INDICATE THAT MUCH OF THE LEAD DUST COMES FROM OUTDOORS URBAN SOIL OFTEN IS LOADED WITH LEAD FROM DES OF WEATHERING EXTERIOR PAINT AND LEADEDGAS EMISSIONS SUCH SOIL GETS TRACKED OR BLOWN INTO HOUSES CHILDREN ALSO ARE EXPOSED TO IT WHEN PLAYING OUTSIDE IN A 1983 STUDY RESEARCHERS USED A SOPHISTICATED ISOTOPIC FINGERPRINTING METHOD TO IDENTIFY SOURCES OF LEAD IN THE BLOOD OF 12 OAKLAND CALIF CHILDREN IT APPEARED TO HAVE COME MAINLY FROM THE SOIL AROUND THEIR HOMES THE OAKLAND STUDY AND ONES LIKE IT SUGGEST THAT CUTTING CHILDREN'S EXPOSURE TO LEADLACED DUST IS GENERALLY MORE EFFECTIVE THAN PAINT ABATEMENT SAYS PATRICK REAGAN A HUDSON MINN CONSULTANT WHO HELPED SHAPE HIS STATE'S POLICY ON LEAD MINNESOTA'S APPROACH INCLUDES EDUCATING PARENTS ABOUT THE RISKS OF HIGHLEAD DUST PROGRAMS TO LIMIT DUST IN URBAN YARDS AND DEPLOYING SWAB TEAMS TO CLEAN UP DUST IN LOWINCOME HOUSING IT ALSO SPECIFIES THAT STATE AGENCIES SHOULDN'T DISTURB INTACT LEAD PAINT IN LOWINCOME HOUSING UNLESS IT CLEARLY IS POISONING CHILDREN RATHER THAN SPEND BILLIONS TO REMOVE A HAZARD THAT'S NOT THERE WE WANTED A LOWCOST EFFECTIVE PROGRAM SAYS MR REAGAN SOME ACTIVISTS DECRY THE MINNESOTA APPROACH AS INADEQUATE TO ADDRESS WHAT THEY TERM A NATIONAL EPIDEMIC OF LEAD POISONING LEAD LEVELS ARE MEASURED IN MICROGRAMS PER DECILITER OF BLOOD PUBLIC HEALTH AGENCIES GENERALLY TREAT LEVELS ABOVE 20 TO 25 AS SERIOUS ENOUGH TO WARRANT INTERVENTION SUCH AS CHECKING CHILDREN'S HOMES PITTSBURGH'S DR NEEDLEMAN SAYS ONE SIGN OF THE LEAD EPIDEMIC'S PROPORTIONS IS FEDERAL DATA SHOWING THAT 1 TO 2 OF US CHILDREN HAVE LEAD LEVELS OVER25 MICROGRAMS BUT NEW YORK'S DR PIOMELLI SAYS THAT IN A RECENT TESTS COLUMBIA PRESBYTERIAN HOSPITAL INCLUDING MANY CHILDREN FROM POOR FAMILIES LEAD LEVELS OVER 25 WERE FOUND IN ONLY ABOUT ONE IN 500 CHILDREN WHICH WOULD BE 02 MASSACHUSETTS DATA FOR THE YEAR ENDED JUNE 30 1992 SHOW THAT ONE IN 400 CHILDREN TESTED OVER 25 OR 025 MOREOVER DOCTORS IN WESTERN STATES SAY THEY GENERALLY SEE MUCH LESS ELEVATED BLOOD LEAD THAN IN THE EAST'S LEAD BELT OF OLDER HOUSES UNIVERSITY OF UTAH PEDIATRICIAN WILLIAM BANNER SAYS THAT OF 261 INNERCITY CHILDREN RECENTLY SCREENED IN SALT LAKE CITY ABOUT 4 HAD LEVELS OVER 10 MICROGRAMS BUT NONE HAD LEVELS HIGHER THAN 15 DOCTORS IN WASHINGTON STATE REPORT SIMILAR RESULTS AND A 1992 SURVEY OF 136 INNERCITY CHILDREN UNDER SIX IN OAKLAND CALIF SHOWED THAT NONE HAD LEVELS OVER 15 SAYS KAISER PERMANENTE'S DR SCHOEN SUCH SCATTERED FIGURES DON'T NECESSARILY REFLECT OVERALL RATES BUT THEY SUGGEST THAT THE LEADPOISONING FIGURES WIDELY PUBLICIZED OVER THE PAST FEW YEARS ARE FAR HIGHER THAN CURRENT RATES MOREOVER SKEPTICS SAY THE PURPORTED POISONING EPIDEMIC SEEMS LESS THAN OVERWHELMING IN LIGHT OF DATA INDICATING THAT BEFORE 1960 THE NATIONAL AVERAGE WAS OVER 20 MICROGRAMS PER DECILITER OF BLOOD AND BEFORE 1950 IT WAS 25 OR HIGHER NOW IT APPEARS TO BE UNDER FIVE BUT J ROUTT REIGART A CHARLESTON SC PEDIATRICIAN AND CHAIRMAN OF THE CDC ADVISORY COMMITTEE CONTENDS THAT AVERAGE RATES ARE LARGELY IRRELEVANT WE ARE CONSTANTLY SURPRISED BY FINDING POCKETS OF DISEASE WHEN WE SCREEN CHILDREN FOR ELEVATED LEAD HE SAYS THAT RAISES A CRITICAL ISSUE AT WHAT LEAD LEVEL ARE CHILDREN ACTUALLY POISONED AMBIGUITY IN STUDIES SCORES OF STUDIES HAVEN'T SETTLED IT IN 1991 THE CDC COMMITTEE WHICH DR PIOMELLI AN ANTILEAD CAMPAIGNER HIMSELF CONTENDS IS NOW DOMINATED BY WELLMEANING FANATICS CONCLUDED THAT SOME ADVERSE HEALTH EFFECTS HAVE BEEN DOCUMENTED AT BLOOD LEAD LEVELS AT LEAST AS LOW AS 10 BUT FEW OF THE STUDIES IT CITED LEND CLEAR SUPPORT TO THAT CONCLUSION ONE REASON IS THAT RESEARCH SUBJECTS IN MANY STUDIES HAVE HAD AVERAGE LEAD LEVELS TOO HIGH TO SHED MUCH LIGHT ON THE LOWLEVEL QUESTION AND A NUMBER OF STUDIES HAVE BEEN AMBIGUOUS SHOWING AT MOST SMALL ADVERSE EFFECTS FROM LOWLEVEL LEAD THAT RESEARCHERS CHARACTERIZE WITH TERMS SUCH AS BORDERLINE THERE ARE A VERY LARGE NUMBER OF INFLUENCES WITH IMPACTS ON CHILDHOOD THAT ARE MUCH LARGER THAN THE PROPOSED IMPACT OF LEAD AT LOW LEVELS SAYS MARJORIE SMITH A UNIVERSITY OF LONDON RESEARCHER THAT MAKES PINPOINTING LOWLEAD EFFECTS SOMETHING LIKE TRYING TO PICK OUT THE SOUND OF THE SECOND VIOLINS IN A SYMPHONY PLAYED ON A RADIO WITH LOTS OF STATIC FOR INSTANCE A STUDY DR SMITH LED IN THE 1980S SHOWED THAT CHILDREN IN LARGER FAMILIES THOSE WITH THREE OR MORE KIDS HAD AVERAGE IQS THAT WERE 377 POINTS LOWER THAN THOSE IN SMALLER FAMILIES SIMILARSIZED IQ REDUCTIONS WERE ASSOCIATED WITH BIRTH WEIGHTS UNDER SIX POUNDS AND WITH COMING FROM A LOWINCOME FAMILY BY COMPARISON THE DATA INDICATED A SLIGHT ADVERSE EFFECT FROM MODERATELY ELEVATED LEAD LEVELS PERHAPS LESS THAN ONE IQ POINT BUT NOT ENOUGH TO BE STATISTICALLY SIGNIFICANT THE RESEARCHERS CONCLUDED THAT THERE WAS NO OVERALL EVIDENCE THAT LEAD AFFECTED IQS IN THE CHILDREN ONCE THEIR PARENTS' IQS AND OTHER FACTORS WERE ACCOUNTED FOR ONE STUDY HOWEVER DID INDICATE A SIGNIFICANT ADVERSE EFFECT AT VERY LOW LEVELS IT TRACKED 148 BOSTON CHILDREN FROM BIRTH TO AGE 10 AND FOUND THAT AT THAT AGE THEIR IQS WERE LOWER BY 58 POINTS FOR EACH 10 MICROGRAMS OF LEAD PER DECILITER THAT HAD BEEN IN THEIR BLOOD AT AGE TWO THEIR LEAD LEVELS AT OTHER AGES BOTH BEFORE AND AFTER TWO DIDN'T SEEM TO SHOW STATISTICALLY SIGNIFICANT CORRELATIONS WITH IQS DR NEEDLEMAN A COAUTHOR OF THAT STUDY MAINTAINS THAT IT MESHES WITH OTHER RESEARCHERS' RESULTS IN AN EXTRAORDINARY CONVERGENCE OF EVIDENCE THAT LEAD LEVELS OF 10 OR BELOW DAMAGE CHILDREN OTHER RESEARCHERS AGREE THERE IS SUBSTANTIAL CAUSE FOR CONCERN AT SUCH LEVELS BUT ARE MORE CAUTIOUS SAYS GERHARD WINNEKE A PROMINENT LEAD RESEARCHER AT THE UNIVERSITY OF DUESSELDORF IN GERMANY THE BOSTON STUDY IS A SINGLE PIECE OF EVIDENCE IN A VERY COMPLICATED FIELD FOR ME IT'S NOT ENOUGH TO ESTABLISH THAT LEAD DAMAGES CHILDREN AT A LEVEL OF 10 OR BELOW I'M NOT AT ALL CONVINCED THAT THERE IS A CONSISTENCY AMONG STUDIES HE SAYS DR WINNEKE NOTES THAT IN SOME STUDIES LEAD APPEARS TO HAVE A STRONG IQ EFFECT AT VERY LOW DOSES WHILE IN OTHER STUDIES SHOWING LITTLE OR NO EFFECTS AT HIGHER DOSES TOXIC SUBSTANCES ARE EXPECTED TO SHOW GREATER HARM AT GREATER DOSES SCIENTIFIC UNCERTAINTY HASN'T DETERRED LAWYERS EVEN WHEN LEVELS ARE LOW IN MASSACHUSETTS LAST YEAR THE MOTHER OF A TODDLER WITH A LEAD LEVEL OF ZERO WON A 9000 SETTLEMENT IN A SUIT AGAINST HER LANDLORD HER ATTORNEY ROBERT RAINER SAYS SHE DESERVED COMPENSATION FOR EMOTIONAL DISTRESS ABOUT LEAD PAINT IN HER APARTMENT THOUSANDS OF LEAD LAWSUITS NOW ARE PENDING NATIONWIDE SAYS JOHN HAYES EDITOR OF A NEWSLETTER ON LEAD LITIGATION PUT OUT BY MEALEY PUBLICATIONS IN PHILADELPHIA THE LAW FIRM GENERALLY TAKES A PERCENTAGE OF THE DAMAGES WON SOME LEAD ACTIVISTS FEEL LITIGATION IS JUST WHAT THE DOCTOR ORDERED PROPERTY OWNERS WOULD DO NOTHING AT ALL UNTIL CHILDREN ARE POISONED IF THEY DIDN'T FEAR LITIGATION SAYS MS POLLACK OF THE CONSERVATION LAW FOUNDATION CALLING LAWSUITS A NEEDED STICK THE CDC ADVISORY COMMITTEE IS WELL AWARE OF THIS STICK IN MINUTES OF A 1991 MEETING ONE COMMITTEE MEMBER IS QUOTED SAYING THAT PHYSICIANS DO NOT LIKE TO SCREEN FOR LEAD POISONING IN CHILDREN BUT IF A COUPLE OF PEDIATRICIANS GET SUED IT WILL CHANGE SCREENING FAR MORE EFFECTIVELY THAN ANY PUBLIC MONEY THAT WE CAN PUT INTO IT THE MINUTES SHOW THERE WAS EVEN CONCERN THAT SETTING LEAD LIMITS TOO LOW MIGHT WEAKEN THE LITIGATION STICK BECAUSE IT WOULD BE HARDER TO PROVE THAT A PARTICULAR BUILDING CAUSED LEAD POISONING BUT THERE APPEARS TO BE LITTLE DANGER OF A SLUMP IN LITIGATION MR RAINER THE LAWYER WHO WON DAMAGES FOR A WOMAN WHOSE CHILD'S LEAD LEVEL WAS ZERO SAYS THE FLOODGATES ARE OPEN FOR LEADPOISONING LAWSUITS HE ADDS THAT HIS BOSTON LAW FIRM HAS FILED HUNDREDS OF THEM OVER THE PAST FEW YEARS AND ADVERTISES ON THE RADIO ABOUT THE POTENTIAL FOR FILING AS ASBESTOS LITIGATION DRIES UP LAW FIRMS GEARED UP FOR TOXIC TORT LITIGATION ARE TURNING TO LEAD MR RAINER SAYS ONCE PLAINTIFFS' ATTORNEYS FIND THERE ARE DOLLARS TO BE MADE IN SUCH CASES THEY JUMP RIGHT ON SEE RELATED LETTER LETTERS TO THE EDITOR CHILDREN'S LEAD RISK MAY BE INCREASING WSJ OCT 21 1993 9309160012 YY93 MM10 9310200183 931020 INTERNATIONAL PT INTI INDORAYON UTAMA JAKARTA PT INTI INDORAYON UTAMA AN INDONESIAN PULP MAKER HAS RAISED 110 MILLION IN THE US BY ISSUING SEVENYEAR BONDS THE COMPANY WHICH IS LISTED ON THE JAKARTA STOCK EXCHANGE ISSUED NONCONVERTIBLE BONDS CALLED SENIOR NOTES THAT CARRY AN ANNUAL INTEREST RATE FIXED AT 9125 CREDIT SUISSE FIRST BOSTON WAS THE UNDERWRITER THE SECURITIES WHICH ARE REGISTERED WITH THE US SECURITIES AND EXCHANGE COMMISSION ARE UNSECURED OBLIGATIONS 9310200182 931020 CD YIELDS WERE FLAT IN MOST RECENT WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE LITTLE CHANGED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS CREPT UP TO 269 FROM 268 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS EASED TO 438 FROM 439 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS ROSE TO 315 FROM 309 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD SLIPPED TO 444 FROM 449 THE SURVEY SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE REMAINED AT 277 ON FIVEYEAR JUMBOS THE AVERAGE SLIPPED TO 447 FROM 448 ACCORDING TO BANXQUOTE 9310200181 931020 JOHNSON & HIGGINS AND GOLDMAN SPONSOR REINSURER IN BERMUDA NEW YORK GOLDMAN SACHS & CO HAS JOINED WITH JOHNSON & HIGGINS TO SPONSOR A BERMUDABASED REINSURANCE COMPANY SPECIALIZING IN PROPERTY CATASTROPHE COVERAGE THE COMPANY GLOBAL CAPITAL REINSURANCE LIMITED IS THE LATEST OF SEVERAL PROPERTY REINSURERS FORMED IN BERMUDA SINCE HURRICANE ANDREW SPURRED DEMAND FOR COVERAGE LIKE THE OTHERS THE COMPANY WILL SELL CATASTROPHE REINSURANCE TO INSURANCE COMPANIES IN THE US AND ABROAD REINSURANCE IS A MECHANISM FOR ONE INSURANCE COMPANY TO ASSUME PART OF THE RISKS FOR A PRICE OF ANOTHER INSURER GLOBAL CAPITAL HAS INITIAL CAPITALIZATION OF 425 MILLION MAKING IT ONE OF THE LARGEST OF THE STARTUPS THE SEVERE SHORTAGE OF CATASTROPHE REINSURANCE FOR TODAY'S PROPERTY EXPOSURES WORLDWIDE HAS CREATED SIGNIFICANT OPPORTUNITIES FOR THIS COMPANY SAID DAVID OLSON CHAIRMAN OF JOHNSON & HIGGINS A MAJOR INSURANCE BROKER BERMUDA IS AN ATTRACTIVE LOCATION FOR REINSURERS BECAUSE THEIR INVESTMENT INCOME CAN ACCUMULATE TAX FREE PROVIDING GREATER RETURN FOR INVESTORS AND A LARGER CUSHION AGAINST FINANCIAL LOSSES MARSH & MCLENNAN COS JP MORGAN & CO USF&G CORP GENERAL RE CORP AND OTHERS HAVE INVESTED IN NEW BERMUDA REINSURERS WITHIN THE PAST YEAR 9310200180 931020 WHO'S NEWS HANSON PLC HANSON PLC LONDON ROSS CHIESE WAS NAMED ASSISTANT CHIEF OPERATING OFFICER OF THIS INDUSTRIAL MANAGEMENT COMPANY MR CHIESE HAD BEEN A FINANCIAL CONTROLLER AND AN ASSOCIATE DIRECTOR ANDREW DOUGAL ALSO A FINANCIAL CONTROLLER WAS APPOINTED DEPUTY FINANCE DIRECTOR AND AN ASSOCIATE DIRECTOR THE APPOINTMENTS ARE EFFECTIVE NOV 1 9310200178 931020 WHO'S NEWS LIBBEY INC LIBBEY INC TOLEDO OHIO PETER C HOWELL PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF MR COFFEE INC WAS NAMED A DIRECTOR OF THIS GLASSWARE PRODUCER INCREASING THE BOARD TO FIVE 9310200177 931020 WHO'S NEWS FLEET MORTGAGE GROUP INC FLEET MORTGAGE GROUP INC COLUMBIA SC THOMAS P HOLLOWELL 50 YEARS OLD WAS NAMED A DIRECTOR OF THIS LENDER AND SERVICER OF MORTGAGE LOANS EXPANDING THE BOARD TO NINE MR HOLLOWELL IS EXECUTIVE VICE PRESIDENT CORPORATE DEVELOPMENT OF TEXTRON INC IN PROVIDENCE RI 9310200176 931020 CLIMBING MISHAPS MOUNT IN SWISS ALPS AS AMATEURS INVADE IN RISKY WEATHER BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ERSTFELD SWITZERLAND THE ALPS ARE BEING BESIEGED THIS SEASON BY AN INVASION OF VISITORS DETERMINED TO MASTER SWITZERLAND'S FASHIONABLE PEAKS AND WHILE THAT MAY BE GOOD FOR TOURISM IT ISN'T GOOD FOR MOUNTAIN RESCUE WORKERS THE COMBINATION OF TOO MANY ENTHUSIASTIC AMATEURS AND TREACHEROUS CONDITIONS HAS BROUGHT INJURIES AND FATALITIES CLOSE TO STARTLING LEVELS LUCKLESS CLIMBERS OFTEN HAVE BECOME THE VICTIMS OF SUDDEN CHANGES IN THE WEATHER AVALANCHES AND FALLING ROCKS A LONG WINTER FOLLOWED BY AN UNPREDICTABLE SUMMER HAS BEEN PARTICULARLY PERILOUS AS MELTING SNOW TOOK MANY CLIMBERS BY SURPRISE WE HAD BAD WEATHER UNTIL THE END OF JULY AND THEN A RUN ON THE MOUNTAINS SAYS SWISS ALPINE CLUB DIRECTOR ALFRED VON GUNTEN ON A SUNNY DAY AS MANY AS 150 PEOPLE HAVE TRIED TO SCALE THE 4478METER 14777 FEET MATTERHORN THE INVITINGLY BEAUTIFUL MOUNTAIN ALSO ATTRACTS EXTREMISTS LAST FALL TWO MEN CLIMBED UP AND DOWN THE MATTERHORN FOUR TIMES IN ONE DAY EACH TIME FROM A DIFFERENT SIDE SIGI STANGIER A HELICOPTER PILOT WITH THE SWISS RESCUE GUARD POINTS OUT THAT MANY TOURISTS HAVE ONLY A LIMITED NUMBER OF VACATION DAYS SO VENTURE OUT REGARDLESS OF WEATHER THE LOCALS WARN THEM BUT MOUNTAIN CLIMBERS ARE STRONGWILLED PEOPLE HE SAYS MR STANGIER BELIEVES THAT THE NUMBER OF CLIMBERS HAS INCREASED BECAUSE THEY FEEL SECURE KNOWING THAT HELICOPTER RESCUE SERVICES EXIST THEY HAVE THEIR SHORTWAVE RADIOS AND JUST EXPECT US TO COME AND PICK THEM UP IF THEY GET INTO DIFFICULTIES SAYS MR STANGIER WHOSE SWISS RESCUE GUARD BASE IS IN THE TOWN OF ERSTFELD IN THE RUGGED SWISS CANTON OF URI WHICH IS DOMINATED BY THE MIGHTY GOTTHARD MASSIF THE 53YEAROLD PILOT HAS FLOWN MORE THAN 3000 RESCUE MISSIONS AND BROUGHT HOME 300 DEAD HE ADMITS TO NEVER QUITE GETTING USED TO TRAGEDY AND RECALLS THE DARK CONTRAST OF ONCE RETURNING FROM A SUNNY BEACH HOLIDAY IN SARDINIA TO BE SENT ON A MISSION TO PICK UP A CLIMBER WHO HAD FROZEN TO DEATH SO FAR THIS YEAR SEVEN PEOPLE HAVE DIED ON THE MATTERHORN THEY GET OUT OF THE CABLE CARS AND DECIDE TO TAKE A WALK IN THEIR SNEAKERS THE WEATHER TURNS BAD AND THEY'RE CAUGHT SAYS BRUNO JELK OF AIR ZERMATT THE RESCUE SERVICE THAT COVERS THE HIGHALPINE CANTON OF WALLIS THEY LACK RESPECT FOR THE MOUNTAINS THERE IS NO CABLE CAR ON THE MATTERHORN BUT THERE ARE ON SURROUNDING 3500METER MOUNTAINS CAUSING MAJOR CONCERN THIS YEAR IS THE MASS OF MOUNTAINEERS FROM EASTERN EUROPE THEY COME IN BUSLOADS SAYS MR JELK THEY DON'T LISTEN TO OUR WARNINGS AND ARE BRUTALLY BADLY EQUIPPED WORST OF ALL HE SUGGESTS THEY DON'T HAVE THE MONEY TO HIRE A GUIDE SO THEY COULD BE MISSING AND NO ONE WOULD KNOW THERE HAVE BEEN 50 OR SO VICTIMS OF HIGHMOUNTAIN CLIMBING IN SWITZERLAND THIS SEASON WHICH RUNS FROM JULY THROUGH OCTOBER THAT TOLL DOESN'T INCLUDE DEATHS FROM OTHER ACTIVITIES SUCH AS HIKING THOSE STATISTICS WON'T BE AVAILABLE UNTIL THE END OF THE YEAR OF THE 1845 MOUNTAIN SPORT ENTHUSIASTS WHO WERE THE SUBJECT OF RESCUE MISSIONS IN ALL OF 1992 AROUND 184 WERE DEAD INCLUDING 75 FATALLY INJURED HIKERS THE WAVE OF ALPINE DEATHS HAS MANY PEOPLE WONDERING IF SWITZERLAND SHOULD INTRODUCE RESTRICTIONS THERE WAS AN ATTEMPT IN 1936 TO BAN CLIMBING ON ONE OF SWITZERLAND'S MOST FORMIDABLE MOUNTAINS THE EIGER THE MOUNTAIN HADN'T BEEN CONQUERED AT THE TIME AND HELD A MAGNETIC ATTRACTION FOR GERMAN ITALIAN AND AUSTRIAN CLIMBERS WHO WANTED TO BE THE FIRST TO THE TOP THE BAN DID LITTLE TO DAMP THEIR OFTEN FATAL ENTHUSIASM RECENT SUGGESTIONS HAVE INVOLVED PERMITS GIVEN ONLY TO THOSE WHO ARE FIT AND WELLEQUIPPED BUT THE SWISS ALPINE CLUB IS DEAD SET AGAINST THE IDEA WHO IS GOING TO JUDGE IF SOMEONE IS FIT ENOUGH SOME HAVE THE BEST EQUIPMENT IN THE WORLD AND DON'T KNOW HOW TO USE IT SAYS MR VON GUNTEN ADDING YOU CAN'T ROB PEOPLE OF THEIR FREEDOM 9310200175 931020 WHO'S NEWS CONSOLIDATED PAPERS INC CONSOLIDATED PAPERS INC WISCONSIN RAPIDS WIS PATRICK F BRENNAN 62 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF COATED PAPERS WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER SUCCEEDING GEORGE W MEAD 66 WHO CONTINUES AS CHAIRMAN 9310200174 931020 WHO'S NEWS MCDONALD'S CORP MCDONALD'S CORP OAK BROOK ILL DONALD R KEOUGH 67 CHAIRMAN OF ALLEN & CO AN INVESTMENT BANKING CONCERN AND RETIRED PRESIDENT OF COCACOLA CO WAS ELECTED A DIRECTOR OF THIS FASTFOOD CHAIN INCREASING THE BOARD TO 17 9310200173 931020 SPRINT POSTS FLAT 3RDQUARTER EARNINGS AMID LACKLUSTER LONGDISTANCE GROWTH KANSAS CITY MO SPRINT CORP REPORTED STRONG THIRDQUARTER EARNINGS FROM CONTINUING OPERATIONS DUE TO ROBUST LOCAL TELEPHONE OPERATIONS BUT CONTINUED LACKLUSTER PERFORMANCE IN ITS KEY LONGDISTANCE BUSINESS DISMAYED SOME ANALYSTS NET INCOME REMAINED ESSENTIALLY FLAT AT 1222 MILLION OR 35 CENTS A SHARE COMPARED WITH 1197 MILLION OR 35 CENTS A SHARE IN THE 1992 THIRD QUARTER REVENUE INCREASED 9 TO 287 BILLION HOWEVER THE LATEST QUARTER REFLECTS 56 MILLION OR 16 CENTS A SHARE IN CHARGES RELATED TO MERGER COSTS NEW TAX LEGISLATION AND EARLY DEBT EXTINGUISHMENT WITHOUT THE CHARGES NET INCOME ROSE ABOUT 42 STILL ANALYSTS EXPRESSED AMBIVALENCE ABOUT THE STRONG GROWTH IN OPERATING PROFIT BECAUSE MUCH OF IT CAME FROM SPRINT'S LOCAL TELEPHONE OPERATIONS THEY DO HAVE STRONG GROWTH IN THEIR BASIC TELEPHONE BUSINESS SAID FRANK GOVERNALLI ANALYST AT FIRST BOSTON CORP BUT THEIR LONGDISTANCE GAINS WERE DISAPPOINTING IN LATE NEW YORK STOCK EXCHANGE TRADING SPRINT WAS DOWN 50 CENTS AT 3725 IN THE LONGDISTANCE RACE SPRINT CONTINUED ITS ROLE AS A SHOW HORSE IN THE THREECOMPANY DERBY FOR CUSTOMERS AMERICAN TELEPHONE & TELEGRAPH CO AND MCI COMMUNICATIONS CORP CONTINUE TO SLUG IT OUT FOR MARKET SHARE WHILE SPRINT REMAINS MIRED AT AN ESTIMATED 8 TO 9 SLICE OF THE MARKET AND SPRINT'S GROWTH IN THE QUARTER MATCHED INDUSTRY GAINS MEANING THE COMPANY MADE FEW IF ANY GAINS AGAINST ITS MAJOR COMPETITORS IN THE THIRD QUARTER LONGDISTANCE MINUTES INCREASED 6 FROM A YEAR EARLIER AND ABOUT 1 FROM THE PREVIOUS QUARTER DESPITE THE TEPID GROWTH IN MINUTES EFFORTS TO CUT COSTS AND MOVE CALLS INTO HIGHER PROFIT TIMES HELPED PUSH SPRINT'S LONGDISTANCE OPERATING PROFIT UP 34 TO 94 MILLION LONGDISTANCE REVENUE ROSE 8 TO 154 BILLION AT THE LOCAL TELEPHONE BUSINESS OPERATING PROFIT ROSE 24 TO 249 MILLION AND REVENUE INCREASED 7 TO 104 BILLION ACCESS LINES INCREASED 46 TO ABOUT 61 MILLION PART OF THE LOCAL TELEPHONE OPERATION'S STRENGTH ANALYSTS SAID HAS BEEN THE RAPID INTEGRATION OF CENTEL CORP ACQUIRED EARLIER THIS YEAR INTO SPRINT'S OPERATIONS 9310200172 931020 WHO'S NEWS CHARTER GOLF INC CHARTER GOLF INC CARLSBAD CALIF RICHARD H WERSCHKUL 47 YEARS OLD FORMER VICE PRESIDENT OF MARKETING AND SALES WAS NAMED TO THE NEWLY CREATED POSITION OF CHIEF OPERATING OFFICER OF THIS GOLF APPAREL MAKER HE ALSO WAS NAMED PRESIDENT SUCCEEDING GERALD MONTIEL 47 WHO IS CHAIRMAN AND CHIEF EXECUTIVE 9310200171 931020 WHO'S NEWS J BAKER INC J BAKER INC CANTON MASS DON HALL WAS NAMED PRESIDENT OF PARADE OF SHOES A DIVISION OF THIS FOOTWEAR AND APPAREL RETAILER SUCCEEDING CHARLES P HUDSON WHO RESIGNED IN AUGUST MR HALL 49 WAS SENIOR VICE PRESIDENT AT WOHL SHOE CO BASED IN ST LOUIS 9310200170 931020 INTERNATIONAL JAPAN WANTS US TO RELAX TRADE PRESSURE TOKYO FEARS CONCESSIONS COULD ERODE SUPPORT FOR POLITICAL REFORMS BY CRAIG FORMAN AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN'S TOP TRADE OFFICIAL IS HOPING THE US WILL GIVE HIS COUNTRY SOME BREATHING ROOM WHILE TOKYO FOCUSES ON DOMESTIC POLITICAL REFORM THAT HE SUGGESTS WILL BENEFIT BOTH SIDES PRIME MINISTER MORIHIRO HOSOKAWA IS TRYING TO DO SOMETHING DECISIVE ON A VARIETY OF ISSUES RANGING FROM TRADE RELATIONS TO DEREGULATION AND DECENTRALIZATION HIROSHI KUMAGAI MINISTER OF INTERNATIONAL TRADE AND INDUSTRY SAID IN AN INTERVIEW WITH US JOURNALISTS BUT IF INTERNATIONAL TENSIONS PARTICULARLY OVER TRADE RISE TOO MUCH HE ADDED IT MAY JEOPARDIZE SUPPORT GIVEN TO HOSOKAWA IN THE NEXT MONTH HOWEVER MR HOSOKAWA'S NEARLY THREEMONTHOLD ADMINISTRATION FACES ITS MOST SEVERE TESTS HE HAS SET A NOV 5 DEADLINE FOR THE LOWER HOUSE OF THE DIET OR PARLIAMENT TO PASS A SET OF BILLS AIMED AT OVERHAULING THE NATION'S CORRUPT ELECTORAL SYSTEM HE THEN NEEDS TO PUSH THROUGH THE LEGISLATURE AN EMERGENCY SPENDING PACKAGE DESIGNED TO BOOST THE COUNTRY'S LAGGING ECONOMY MEANWHILE THE US IS THREATENING TO SLAP SANCTIONS ON JAPAN BY NOV 1 UNLESS MR HOSOKAWA COMES UP WITH SPECIFIC MEASURES TO INCREASE FOREIGN ACCESS TO GOVERNMENT CONSTRUCTION PROJECTS THE US ALSO WANTS JAPAN TO ANNOUNCE BY NOV 15 PLANS TO OPEN ITS RICE MARKET TO IMPORTS A POLITICALLY RISKY MOVE HERE MR HOSOKAWA IS THEN SCHEDULED TO MEET WITH MR CLINTON IN SEATTLE ON NOV 19 WHEN THE US PRESIDENT IS EXPECTED TO PRESS JAPAN'S PREMIER FOR PROGRESS IN WIDERANGING TALKS AIMED AT CUTTING JAPAN'S HUGE TRADE SURPLUS MANY JAPANESE ARE CONCERNED THAT IF TOKYO MAKES CONTROVERSIAL TRADE CONCESSIONS TO APPEASE WASHINGTON THE DELICATE CONSENSUS SUPPORTING THE AMBITIOUS POLITICAL REFORM BILLS COULD UNRAVEL THEY ARGUE THAT IN THE LONG RUN POLITICAL REFORM WILL ALSO BE GOOD FOR THE US BY MAKING THE JAPANESE GOVERNMENT MORE OPEN AND FLEXIBLE MR KUMAGAI SAID THE LATEST ROUND OF USJAPAN FRAMEWORK TRADE TALKS WHICH CONTINUE HERE THIS WEEK LOOM LARGE ON THE AGENDA BUT HE CAUTIONED AGAINST INFLATED EXPECTATIONS OF PROGRESS INDICATING THAT TOKYO CAN'T AFFORD TO LOSE ITS FOCUS ON DOMESTIC POLITICAL REFORM SOME AMERICANS HAVE EXPRESSED SKEPTICISM HOWEVER THAT JAPAN WILL EVER RESPOND TO US TRADE COMPLAINTS WITHOUT PRESSURE EVEN AFTER A SWEEPING DOMESTIC POLITICAL TRANSFORMATION MR KUMAGAI DISPLAYED LITTLE SYMPATHY FOR THE FUNDAMENTAL US NEGOTIATING POSITION WHICH SEEKS MEASURABLE RESULTS FROM TRADE AGREEMENTS ON THE ONE SIDE THE US IS ASKING FOR OPEN TRANSPARENT AND COMPETITIVE MARKETS BUT ON THE OTHER IT IS SAYING THAT YOU SHOULD GO BY A SOCIALIST SYSTEM MR KUMAGAI SAID PULLING JAPAN'S ECONOMY OUT OF RECESSION WOULD HELP CUT THE COUNTRY'S TRADE SURPLUS BUT MR KUMAGAI INDICATED THAT JAPAN'S CURRENT ECONOMIC OUTLOOK REMAINS UNCERTAIN WITH BOTH CONSUMERS AND INDUSTRY CAUTIOUS AMID ONE OF JAPAN'S WORST ECONOMIC DOWNTURNS IN RECENT TIMES MR KUMAGAI SAID ANY RECOVERY DEPENDS ON BETTER GLOBAL MACROECONOMIC COORDINATION AS WELL AS POTENTIAL DOMESTIC TAX CUTS THAT COULD GET JAPANESE CONSUMERS SPENDING AGAIN THE GOVERNMENT ALREADY IS PLANNING TO SPEND 615 TRILLION YEN 5724 BILLION TO STIMULATE THE ECONOMY BUT MR KUMAGAI SUGGESTED THAT JAPAN MAY NEED YET ANOTHER DOSE OF FISCAL PUMPPRIMING TO ENSURE THAT THE DOMESTIC ECONOMY GETS MOVING AGAIN HE DECLINED TO ELABORATE SAYING THAT SUCH A PACKAGE WOULD LOSE ITS DRAMATIC EFFECT IF DISCLOSED TOO EARLY 9310200169 931020 WHO'S NEWS CORRIGAN EXHEAD OF NEW YORK FED JOINS GOLDMAN BY ALEXANDRA PEERS AND STEVEN E LEVINGSTON STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK E GERALD CORRIGAN FORMER PRESIDENT OF THE FEDERAL RESERVE BANK OF NEW YORK JOINED GOLDMAN SACHS & CO AS CHAIRMAN OF ITS INTERNATIONAL ADVISORY COMMITTEE THE FULLTIME POST WHICH DOESN'T INCLUDE A PARTNERSHIP IN THE PRIVATE NEW YORK INVESTMENT BANKING FIRM POSITIONS THE WELLKNOWN FORMER FED OFFICIAL AS THE POINT MAN FOR A VARIETY OF INTERNATIONAL INVESTMENT BANKING PROJECTS FOR GOLDMAN THE FIRM'S STAR HIRE IS SEEN AS AN ATTEMPT TO BEEF UP ITS GLOBAL EXPANSION EFFORTS AND ITS PROFILE IN INTERNATIONAL BANKING AND ASSETGATHERING AT A GOLDMAN SACHS NEWS CONFERENCE FOLLOWING THE ANNOUNCEMENT STEPHEN FRIEDMAN CHAIRMAN OF THE FIRM LAUDED MR CORRIGAN FOR HIS SUPERB UNDERSTANDING OF THE WORLD FINANCIAL SYSTEM AND SAID THE HIRE CAN BE SEEN AS A SIGN OF THE IMPORTANCE OF OVERSEAS BUSINESS TO GOLDMAN IT ALSO UNDERSCORES THE SCRAMBLE AMONG BIG US INVESTMENT BANKS TO BOLSTER THEIR INTERNATIONAL OPERATIONS WHICH THEY VIEW AS THE GROWTH SECTOR OF THE 1990S WHILE MR CORRIGAN ISN'T EXPECTED TO ACTUALLY RUN DEALS AT GOLDMAN IT IS EXPECTED THAT HIS REPUTATION WILL OPEN DOORS IN THE WORLD WE'RE IN TODAY WE'RE BECOMING A TRULY GLOBAL FIRM A TREMENDOUS PART OF WHAT WE BRING TO BEAR FOR CLIENTS IS TO MEDIATE ACROSS BORDERS MR FRIEDMAN SAID ROUGHLY 30 OF GOLDMAN'S PERSONNEL HE SAID IS NOW BASED OUTSIDE THE US MR CORRIGAN 52 YEARS OLD SAID HE WAS ENTHUSIASTIC ABOUT THE WIDE RANGE OF PROJECTS HE'LL UNDERTAKE FOR GOLDMAN IT'S LIKE BEING IN A CANDY STORE HE SAID FOR EIGHT YEARS MR CORRIGAN SERVED AS HEAD OF THE LARGEST AND MOST INFLUENTIAL ARM OF THE NATION'S CENTRAL BANK HE ACQUIRED A REPUTATION IN THAT TIME FOR DAMAGE CONTROL HAVING PILOTED THE FED DURING BOTH THE STOCK MARKET CRASH OF 1987 AND THE DISSOLUTION OF THE DREXEL BURNHAM LAMBERT EMPIRE WHILE MR CORRIGAN WILL ASSUME HIS RESPONSIBILITIES AT GOLDMAN ON JAN 3 HE SAID HE WILL NOT HAVE ANYTHING TO DO WITH ANY TRADING ACTIVITIES OR DECISIONMAKING ACTIVITY UNTIL THE MIDDLE OF NEXT YEAR ROUGHLY A YEAR AFTER HIS AUG 20 RESIGNATION FROM THE NEW YORK FED MR CORRIGAN'S SPECIFIC DUTIES WILL INCLUDE STRATEGIC AND RISK ANALYSIS RELATIONSHIPBUILDING AND ADVICE AND LEADERSHIP OF SELECTED TRANSACTION TEAMS GOLDMAN SAID MR CORRIGAN WILL CONTINUE CERTAIN OUTSIDE ACTIVITIES INCLUDING HIS NONEXECUTIVE CHAIRMANSHIP OF THE RUSSIANAMERICAN ENTERPRISE FUND 9310200168 931020 WHO'S NEWS FOSTER WHEELER CORP FOSTER WHEELER CORP CLINTON NJ HAROLD E KENNEDY 66 YEARS OLD WILL RETIRE AS GENERAL COUNSEL OF THIS ENGINEERING AND CONSTRUCTION SERVICES CONCERN ON JAN 1 AND AS VICE CHAIRMAN ON MAY 1 HE WILL BE SUCCEEDED AS GENERAL COUNSEL BY THOMAS R O'BRIEN 54 WHO WILL ALSO BE NAMED A VICE PRESIDENT 9310200167 931020 WHO'S NEWS COLLABORATIVE RESEARCH INC COLLABORATIVE RESEARCH INC WALTHAM MASS DONALD J MCCARREN 53 YEARS OLD AND STEVEN M RAUSCHER 39 WERE ELECTED DIRECTORS OF THIS BIOTECHNOLOGY CONCERN EXPANDING THE BOARD TO EIGHT MEMBERS MR MCCARREN IS PRESIDENT AND CHIEF OPERATING OFFICER OF IMMUNOGEN INC A CAMBRIDGE MASS PHARMACEUTICAL CONCERN AND MR RAUSCHER IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PHARMEDIC CO A CHICAGO DRUGDELIVERY COMPANY 9310200166 931020 BANC ONE PLAN IS CLEARED BY FED WASHINGTON THE FEDERAL RESERVE HAS APPROVED THE APPLICATION OF BANC ONE CORP COLUMBUS OHIO AND BANC ONE ILLINOIS CORP SPRINGFIELD ILL TO ACQUIRE MID STATES BANCSHARES INC AND THEREBY INDIRECTLY ACQUIRE FIRST NATIONAL BANK OF MOLINE BOTH OF MOLINE ILL BANC ONE WITH TOTAL DEPOSITS OF ABOUT 592 BILLION CONTROLS BANKING SUBSIDIARIES IN OHIO INDIANA MICHIGAN WISCONSIN ILLINOIS AND NINE OTHER STATES ACCORDING TO A FED NEWS RELEASE FOLLOWING COMPLETION OF THE ACQUISITION BANC ONE WOULD REMAIN THE NINTHLARGEST COMMERCIAL BANKING ORGANIZATION IN ILLINOIS CONTROLLING 23 OF THE TOTAL DEPOSITS IN COMMERCIAL BANKS IN THAT STATE THE FED SAID 9310200165 931020 MORGAN KEEGAN MCI IN PACT MEMPHIS TENN MORGAN KEEGAN INC SAID IT SELECTED MCI COMMUNICATIONS CORP TO PROVIDE SERVICES IN A THREEYEAR 5 MILLION AGREEMENT THE REGIONAL BROKERAGE CONCERN SAID IT WILL USE MCI 800 SERVICE FOR CUSTOMER TRADING ACTIVITY AT ITS 30 LOCATIONS MORGAN KEEGAN ALSO SAID IT WILL USE MCI DATA COMMUNICATIONS TO SEND REALTIME STOCK QUOTE INFORMATION TO BRANCH OFFICES AND TO PROVIDE INTERCOM VOICE SERVICES TO ITS BRANCHES 9310200164 931020 BIG CHARGES CUTBACKS SET AT 3 DRUG FIRMS AMERICAN CYANAMID PFIZER UPJOHN TO ELIMINATE A TOTAL OF 7000 JOBS BY WALL STREET JOURNAL REPORTERS ELYSE TANOUYE IN NEW YORK JACQUELINE MITCHELL IN DETROIT AND JAMES P MILLER IN CHICAGO IN THE LATEST ROUND OF PHARMACEUTICAL INDUSTRY CUTBACKS PFIZER INC UPJOHN CO AND AMERICAN CYANAMID CO SAID THEY WERE ELIMINATING A TOTAL OF 7000 JOBS AND TAKING HUGE RESTRUCTURING CHARGES PFIZER SAID IT TOOK A THIRDQUARTER 750 MILLION PRETAX CHARGE ITS LARGEST EVER TO COVER THE COST OF RESTRUCTURING WHICH WILL REDUCE THE WORK FORCE BY ABOUT 3000 PEOPLE OVER SEVERAL YEARS UPJOHN ANNOUNCED A THIRDQUARTER 255 MILLION PRETAX CHARGE THAT COVERS THE COSTS OF CUTTING 1500 JOBS AND PLANT CLOSURES BOTH COMPANIES REPORTED THIRDQUARTER NET LOSSES BECAUSE OF THE CHARGES AMERICAN CYANAMID MEANWHILE SAID IT WILL CUT ITS WORK FORCE BY ABOUT 2500 EMPLOYEES PRIMARILY IN ITS MEDICAL BUSINESS AND WILL TAKE A PRETAX FOURTHQUARTER CHARGE OF BETWEEN 150 MILLION AND 200 MILLION TO COVER THE COSTS ALL THREE CITED THE FASTCHANGING MARKETPLACE BUT PFIZER IS TRYING TO PRESERVE ITS LEADERSHIP POSITION IN THE MARKET WHILE THE MORE DESPERATE UPJOHN IS SCRAMBLING TO SHORE UP ITS BUSINESS CYANAMID THE PARENT OF LEDERLE LABORATORIES IS TRYING TO BECOME MORE EFFICIENT AS IT SHEDS ITS REMAINING CHEMICAL OPERATIONS WHILE THE MAKEOVER WILL BE DIFFICULT IN HUMAN TERMS CYANAMID CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALBERT J COSTELLO CALLED IT NECESSARY GIVEN THE ENVIRONMENT IN WHICH WE ARE OPERATING THE CUTBACKS BRING TO ABOUT 27000 THE NUMBER OF JOB CUTS ANNOUNCED BY THE DRUG INDUSTRY IN THE PAST YEAR ACCORDING TO THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION COMPANIES HAVE BEEN FORCED TO TRIM COSTS AS INDUSTRY EARNINGS GROWTH HAS SLOWED SHARPLY BECAUSE OF STEEP DISCOUNTING TO BIG INSTITUTIONAL BUYERS AND GOVERNMENTAL PRESSURE ON PRICES IN THE US AND ABROAD MARIOLA HAGGAR AN ANALYST AT SALOMON BROTHERS CALLED THE RECENT WAVE OF RESTRUCTURING AN AWAKENING BY MANAGEMENT TO CHANGES IN THE MARKETPLACE SHE ADDED IT MAKES SENSE TO ANNOUNCE BIG CHARGES NOW BECAUSE STOCK PRICES ARE DOWN ANYWAY PFIZER FOR EXAMPLE PROBABLY WON'T EXECUTE MUCH OF ITS RESTRUCTURING FOR SEVERAL YEARS SHE SAID POINTING OUT THAT NEW YORKBASED PFIZER HAS BEEN STREAMLINING SINCE 1988 HENRY A MCKINNELL PFIZER'S CHIEF FINANCIAL OFFICER SAID THE RESTRUCTURING CHARGE IS THE LATEST IN A SERIES OF MOVES TO PREPARE OURSELVES FOR WHAT WE BELIEVE WILL BE TOUGHER TIMES AHEAD THE CHARGE CAUSED PFIZER TO REPORT A THIRDQUARTER LOSS OF 2142 MILLION OR 65 CENTS A SHARE COMPARED WITH NET INCOME OF 2975 MILLION OR 88 CENTS A SHARE A YEAR EARLIER FOR THE NINE MONTHS PFIZER EARNED 3686 MILLION OR 115 A SHARE DOWN 31 FROM THE 5321 MILLION OR 158 A SHARE PFIZER'S THIRDQUARTER SALES ROSE 2 TO 187 BILLION FROM 183 BILLION A YEAR AGO FOR THE NINE MONTHS SALES ROSE 4 TO 549 BILLION FROM 528 BILLION PFIZER SAID SOME OF THE JOB CUTS WOULD INVOLVE LAYOFFS OVER THE NEXT SEVERAL YEARS DR MCKINNELL ADDED THAT PFIZER HAD DONE ITS UTMOST TO SPARE ITS RESEARCH OPERATIONS FROM CUTS BUT ADDED IF THINGS DEVELOP FURTHER IN AN ADVERSE WAY WE'RE GOING TO FACE SOME TOUGH CHOICES ABOUT OUR FUTURE INVESTMENT IN RESEARCH PFIZER SAID THE RESTRUCTURING CHARGE WILL ALSO COVER ASSET WRITEOFFS AND THE CONSOLIDATION OF MANUFACTURING DISTRIBUTION AND ADMINISTRATIVE INFRASTRUCTURE AFTER THE RESTRUCTURING IS COMPLETED THE COMPANY PREDICTED IT WILL SAVE AT LEAST 130 MILLION A YEAR EXCLUDING THE CHARGE PFIZER'S RESULTS WERE IN LINE WITH EXPECTATIONS OF A STRONG QUARTER PHARMACEUTICAL SALES ROSE 13 IN THE QUARTER FROM A YEAR EARLIER DRIVEN BY STRONG GROWTH IN NEW PRODUCTS SUCH AS THE ANTIDEPRESSANT ZOLOFT UP 85 AND ANTIBIOTIC ZITHROMAX UP 189 SALES OF ITS BLOCKBUSTER HEART DRUG GREW 9 AND ITS NEWER ENTRANT NORVASC GREW 71 PERSHARE EARNINGS FROM CONTINUING OPERATIONS ROSE 23 FAR BETTER THAN THE REST OF THE INDUSTRY UPJOHN BASED IN KALAMAZOO MICH REPORTED A THIRDQUARTER LOSS OF 30 MILLION AFTER TAKING AN AFTERTAX CHARGE OF 183 MILLION FOR CUTTING ITS PAYROLL CUTTING CAPACITY IN 14 PLANTS WORLDWIDE OVER THE NEXT FEW YEARS AND WRITING OFF ASSETS THIS COMPARES WITH NET INCOME OF 131 MILLION A YEAR EARLIER WHICH INCLUDED A RESTRUCTURING CHARGE OF 15 MILLION THE CHARGES RESULTED IN A PERSHARE LOSS OF 19 CENTS IN THE THIRDQUARTER COMPARED WITH NET OF 73 CENTS A SHARE A YEAR EARLIER QUARTERLY SALES WERE 900 MILLION COMPARED WITH 894 MILLION A YEAR AGO THE RESTRUCTURING CHARGES ARE PART OF OUR ONGOING PLAN TO ADJUST OUR COST STRUCTURE TO REFLECT THE CHANGING DYNAMICS IN THE WORLDWIDE MARKETPLACE SAID LEY S SMITH UPJOHN'S PRESIDENT AND CHIEF OPERATING OFFICER THESE ACTIONS ARE EXPECTED TO SAVE A MINIMUM OF 150 MILLION IN ANNUAL OPERATING EXPENSES THE PHARMACEUTICAL CONCERN IS ATTEMPTING TO OFFSET PROFIT DECLINES IT EXPECTS WHEN PATENTS EXPIRE THIS MONTH ON ITS NO 1SELLING DRUG XANAX A TRANQUILIZER AND ITS CONTROVERSIAL HALCION SLEEP MEDICATION EARLIER THIS YEAR UPJOHN LOST PATENT PROTECTION ON ANSAID A TREATMENT FOR ARTHRITIS LAST YEAR THE PATENT EXPIRED ON MICRONASE A DIABETES TREATMENT COMBINED REVENUE FOR THOSE DRUGS DURING THE FIRST NINE MONTHS OF THE YEAR WAS 703 MILLION ROUGHLY 26 OF UPJOHN'S TOTAL REVENUE FOR THE PERIOD UPJOHN DOESN'T HAVE MUCH IN ITS PRODUCT PIPELINE TO PICK UP THE SLACK AND GENERIC COMPETITION TO XANAX FROM CYANAMID'S LEDERLE LABORATORIES UNIT BEGINS TODAY LEDERLE SAID UPJOHN SAID IT WILL SLASH ITS WORLDWIDE WORK FORCE BY 1500 EMPLOYEES TO 17500 BY THE END OF NEXT YEAR UPJOHN HAS ALREADY TRIMMED ITS PAYROLL BY MORE THAN 2000 WORKERS OVER THE PAST FOUR YEARS WHILE WE ARE TAKING ACTIONS TO REDUCE COSTS WE AREN'T REDUCING OUR INVESTMENT IN IMPORTANT RESEARCH AND DEVELOPMENT PROGRAMS THAT ARE CRITICAL TO THE RAPID DEVELOPMENT OF INNOVATIVE PRODUCTS MR SMITH SAID THAT WILL CONTINUE TO DAMP EARNINGS WE EXPECT EARNINGS IN 1994 TO BE BELOW 1993 LEVELS MR SMITH ADDED IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE PFIZER SHARES ENDED AT 63 DOWN 75 CENTS WHILE UPJOHN CLOSED AT 32 UP 375 CENTS AT WAYNE NJBASED CYANAMID THE STAFF CUTS REPRESENT ABOUT 9 OF THE WORK FORCE THAT WILL REMAIN AFTER THE SPINOFF LATER THIS YEAR OF ITS CYTEC CHEMICAL SUBSIDIARY A SPOKESWOMAN SAID ABOUT HALF THE 2500 JOBS WILL BE CUT DOMESTICALLY WITH THE REMAINDER TRIMMED FROM ITS OVERSEAS BUSINESSES CYANAMID SAID IT WILL TAKE ABOUT THREE YEARS TO FULLY PUT IN PLACE THE GLOBAL COMPANYWIDE RESTRUCTURING COMPETITION PARTICULARLY IN PHARMACEUTICS SPURRED BY INTENSE HEALTHCARE COSTCONTAINMENT WORLDWIDE AND THE PROSPECT OF HEALTHCARE REFORM IN THE US REQUIRE THAT WE RESTRUCTURE OUR OPERATIONS TO BE AS EFFICIENT AND PRODUCTIVE AS POSSIBLE CYANAMID'S MR COSTELLO SAID MR COSTELLO ELEVATED TO THE TOP JOBS EARLY THIS YEAR SAID THAT 1993 HAS BEEN A YEAR OF DRAMATIC CHANGE THE COMPANY PAID 350 MILLION AND CONTRIBUTED ITS ANTICANCER DRUG BUSINESS TO ACQUIRE A 535 STAKE IN IMMUNEX CORP A SEATTLE BIOTECHNOLOGY CONCERN IT AGREED TO ACQUIRE THE PESTICIDE OPERATIONS OF A ROYAL DUTCH/SHELL GROUP UNIT WHICH HAS SALES OF ABOUT 700 MILLION AND IT IS EXPECTED TO COMPLETE BEFORE YEAR END THE CYTEC SPINOFF CYANAMID HAS SAID IT EXPECTS TO TAKE A 320 MILLION AFTERTAX CHARGE LINKED TO THE PENDING CYTEC SPINOFF AND CERTAIN ENVIRONMENTAL LIABILITIES IN ADDITION TO THE 11500EMPLOYEE LEDERLE PHARMACEUTICAL DIVISION WHICH IS THE LARGEST COMPONENT OF THE COMPANY'S MEDICAL BUSINESSES CYANAMID HAS INTERESTS IN WOUND MANAGEMENT OPHTHALMIC INSTRUMENTS AND PHARMACEUTICALS AND MICROSURGERY INSTRUMENTS IN LATE NEW YORK STOCK EXCHANGE TRADING THE COMPANY'S SHARES INCHED DOWN 375 CENTS TO 5750 9310200163 931020 SABA PETROLEUM BUYS PROPERTIES IRVINE CALIF SABA PETROLEUM CO SAID IT COMPLETED THE ACQUISITION OF PRODUCING OIL AND GAS PROPERTIES IN VENTURA COUNTY CALIF FOR 173000 OR THE EQUIVALENT OF 78 CENTS A BARREL OF OIL THE COMPANY SAID THE PROPERTIES HAVE AN ESTIMATED NET PRESENT VALUE DISCOUNTED AT 10 OF 778000 WITH RESERVES OF 208000 BARRELS OF OIL AND 88 MILLION CUBIC FEET OF GAS 9310200162 931020 AVNET'S UNIT DISTRIBUTOR PACT CULVER CITY CALIF HAMILTON HALLMARK A DIVISION OF AVNET INC HAS SIGNED A DISTRIBUTOR AGREEMENT WITH AUSTIN SEMICONDUCTOR INC A MANUFACTURER OF SEMICONDUCTOR MEMORY COMPONENTS FOR THE MILITARY MARKETPLACE TERMS WEREN'T DISCLOSED HAMILTON SAID IT WILL DISTRIBUTE AUSTIN SEMICONDUCTOR'S LINE OF MILITARY DRAMS SRAMS AND VRAMS TO ORIGINAL EQUIPMENT MANUFACTURERS THROUGHOUT NORTH AMERICA 9310200161 931020 WHO'S NEWS CONCORD FINANCIAL GROUP INC CONCORD FINANCIAL GROUP INC NEW YORK RICHARD A FABIETTI 35 YEARS OLD CURRENTLY SENIOR VICE PRESIDENT AND CONTROLLER OF THIS BANKRELATED MUTUAL FUNDS DISTRIBUTOR WAS NAMED SENIOR VICE PRESIDENT AND TREASURER IRIMGA MCKAY 33 WAS PROMOTED TO SENIOR VICE PRESIDENT FROM FIRST VICE PRESIDENT 9310200160 931020 WHO'S NEWS USLIFE CORP USLIFE CORP NEW YORK JAMES M SCHLOMANN 44 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AT THIS LIFE INSURANCE HOLDING COMPANY FILLING A NEW POSITION MR SCHLOMANN HAD BEEN VICE PRESIDENT AND CONTROLLER OF FRANK B HALL & CO A CHICAGO INSURANCE BROKERAGE CONCERN 9310200159 931020 WHO'S NEWS AMERICAN EXPRESS CO AMERICAN EXPRESS CO NEW YORK ROBERT KIMMITT FORMER US AMBASSADOR TO GERMANY WAS NAMED A MANAGING DIRECTOR IN THE LEHMAN BROTHERS INC UNIT'S INVESTMENTBANKING DEPARTMENT MR KIMMITT 45 YEARS OLD WILL HEAD LEHMAN'S WASHINGTON CORPORATEFINANCE OFFICE AND WILL JOIN THE FIRM'S INVESTMENTBANKING MANAGEMENT COMMITTEE 9310200158 931020 WHO'S NEWS PRIMERICA CORP PRIMERICA CORP NEW YORK BARRY SLOANE 33 YEARS OLD AND MICHAEL YOUNGBLOOD 39 WERE NAMED MANAGING DIRECTORS OF THE SMITH BARNEY SHEARSON INC BROKERAGE AND SECURITIES UNIT MR SLOANE FORMERLY PRESIDENT OF AEGIS CAPITAL MARKETS WILL HEAD NATIONAL SALES AT SMITH BARNEY SHEARSON AND MR YOUNGBLOOD PREVIOUSLY MANAGING DIRECTOR AT DAIWA SECURITIES AMERICA WILL OVERSEE MORTGAGE RESEARCH PRIMERICA CORP NAMED BARRY SLOANE HEAD OF NATIONAL SALES FOR MORTGAGEBACKED SECURITIES AT THE COMPANY'S SMITH BARNEY SHEARSON UNIT AN ITEM WEDNESDAY INCORRECTLY INDICATED THAT MR SLOANE WOULD HEAD NATIONAL SALES FOR THE ENTIRE UNIT 9310200157 931020 GM HUGHES UNIT IN SINGAPORE TOKYO DELCO ELECTRONICS CORP A UNIT OF GENERAL MOTORS CORP'S GM HUGHES ELECTRONICS CORP FORMED A NEW BUSINESS UNIT DELCO ELECTRONICSASIA/PACIFIC THE COMPANY SAID THE UNIT WILL BE BASED IN SINGAPORE WITH REGIONAL SUPPORT ACTIVITIES THROUGHOUT THE ASIA/PACIFIC AREA 9310200156 931020 DIPLOMATIC WIFE LUCILLE BLOCH WANTS GOVERNMENT TO LIFT ITS INDICTMENT' OF HER HUSBAND FELIX ALLEGED SPY WAS NEVER CHARGED SHE FEELS UNJUSTLY PUNISHED A PROSTITUTE'S TV INTERVIEW BY AMANDA BENNETT STAFF REPORTER OF THE WALL STREET JOURNAL ON SUNDAY JUNE 25 1989 LUCILLE BLOCH AND HER HUSBAND WERE EN ROUTE TO WASHINGTON FROM NEW YORK WHERE THEY HAD JUST HAD A PLEASANT FAMILY VISIT IN THE CAR HER HUSBAND GREW SOMBER I THINK I AM IN DEEP S HE TOLD HER MRS BLOCH RECALLS BEING SHOCKED BY HIS LANGUAGE HER ELEGANT AND FORMAL TEUTONIC HUSBAND RARELY USED VULGARISMS BEFORE HER NORMALLY HE DOESN'T SPEAK THAT WAY SO I THINK HE WAS REALLY UPSET SHE SAYS HE HAD GOOD REASON AND SO AS IT TURNED OUT DID MRS BLOCH HER HUSBAND IS FELIX S BLOCH THE TROUBLE ACCORDING TO NEWS REPORTS TURNED OUT TO BE A VIDEOTAPE OF MR BLOCH THEN A SENIOR STATE DEPARTMENT OFFICIAL IN WHICH HE WAS ALLEGEDLY SEEN PASSING A BRIEFCASE TO A SUSPECTED KGB AGENT IN PARIS TO MANY PEOPLE THE FELIX BLOCH STORY WAS A DRAMATIC TALE OF SEX SECRETS AND SPYING THE MOST SERIOUS STATE DEPARTMENT ESPIONAGE SCANDAL SINCE THE ALGER HISS AFFAIR A TIME MAGAZINE CORRESPONDENT CALLED IT MR BLOCH WAS DISMISSED FROM HIS 80000AYEAR GOVERNMENT JOB AND DENIED HIS PENSION HE WAS NEVER CHARGED WITH A CRIME FOR LUCILLE BLOCH THERE IS A SADDER MORE PERSONAL SIDE TO THE STORY IT'S ABOUT THE DOWNFALL OF A FAMILY SHE SAYS AFTER MORE THAN FOUR TRYING AND PERPLEXING YEARS THE COUPLE IS NOW ESTRANGED SHE EXPECTS THEIR DIVORCE TO BE FINAL EARLY NEXT YEAR THEIR TWO DAUGHTERS STILL STRUGGLE TO RECONCILE THE PRIM AND PROPER FATHER OF THEIR CHILDHOOD WITH THE STRANGER THEY HAVE READ ABOUT IN THE NEWSPAPERS MRS BLOCH'S STORY ALSO SHOWS THE FATE THAT CAN BEFALL WOMEN WHO FIND THEMSELVES TARRED AND CAST OFF AS A RESULT OF A HUSBAND'S FALL FROM GRACE SHE TOO WAS HASTILY REMOVED FROM THE DIPLOMATIC WORLD OF POMP POLITESSE AND PATRIOTISM SHE TOO WAS TAILED FOR NEARLY SIX MONTHS BY FEDERAL BUREAU OF INVESTIGATIONS AGENTS FOLLOWING SO CLOSE I COULD SMELL THEIR JUICY FRUIT GUM SHE SAYS MANY FRIENDS AND COLLEAGUES SHUNNED HER HER CALLS TO HER HUSBAND'S FORMER EMPLOYER THE STATE DEPARTMENT HAVE GONE UNANSWERED SHE LOST HER JOB I HAVE BEEN FOREVER TAINTED AND SCARRED BY THE ALLEGATIONS AGAINST FELIX SHE SAYS AT 58YEARSOLD MRS BLOCH LIVES APART FROM HER HUSBAND IN CHAPEL HILL NC AND VISITS HER DAUGHTERS IN NEW YORK CITY AND SUBURBAN CHAPPAQUA NY MUCH OF HER TIME IS SPENT LOBBYING THE GOVERNMENT TO GET HER PENSION AND HEALTH BENEFITS RESTORED AND TRYING TO GET HER NAME OFFICIALLY CLEARED HOW LONG DOES AN INNOCENT PERSON HAVE TO BE HARASSED SHE ASKS SHE IS DOGGED BY THE HISTORY OF CELEBRATED SPY CASES IN WHICH FAMILY MEMBERS TURNED OUT TO BE SURPRISINGLY INVOLVED ADMITTED SPY JOHN ANTHONY WALKER JR RECRUITED HIS BROTHER AND HIS SON AFTER BARBARA WALKER TURNED IN HER EXHUSBAND SHE LATER SAID SHE HAD BEEN ALONG ON SOME OF HIS SPYING ERRANDS AS THE FBI TRAILED EDWARD LEE HOWARD A FORMER CENTRAL INTELLIGENCE AGENCY AGENT SUSPECTED OF SELLING SECRETS TO THE SOVIETS HIS WIFE MARY REPORTEDLY HELPED HIM ESCAPE THOUGH SHE HAS NEVER PUBLICLY CONFIRMED NOR DENIED THIS HE TURNED UP IN MOSCOW SHE LIVES IN THE US MR BLOCH BY CONTRAST HAS NEVER PUBLICLY ADMITTED OR DENIED ANYTHING HE HAS NOT FLED THE COUNTRY WHAT'S MORE MRS BLOCH VEHEMENTLY DENIES ANY KNOWLEDGE EVEN OF ANYTHING HER HUSBAND MIGHT HAVE DONE SHE SAYS SHE COOPERATED WITH THE FBI AND THE JUSTICE DEPARTMENT IN THEIR INVESTIGATIONS OF MR BLOCH PUBLICLY NEITHER THE STATE DEPARTMENT NOR THE FBI WILL COMMENT ON THE BLOCH CASE OR ON MRS BLOCH A SPOKESMAN FOR THE JUSTICE DEPARTMENT SAYS MRS BLOCH WASN'T UNDER INVESTIGATION FOR ESPIONAGE BUT DECLINES TO COMMENT ON ITS INQUIRIES INTO WHAT IF ANYTHING SHE KNEW ABOUT HER HUSBAND AS FELIX BLOCH 58 GROWS MORE RECLUSIVE HE NOW WORKS AS A BUS DRIVER IN CHAPEL HILL AND HASN'T RESPONDED TO REQUESTS FOR INTERVIEWS LUCILLE BLOCH GROWS MORE VOCAL ANGRY AND BEREAVED MRS BLOCH SEEKS TO MAKE SENSE OF HER YEARS WITH FELIX AND THE HARDSHIPS THAT HAVE FOLLOWED PEOPLE SAY IF I WERE CLOSE TO MY HUSBAND AND AN ACTIVE PARTNER IN HIS LIFE WHY WASN'T I SUSPICIOUS OF HIM AND WHY DIDN'T I KNOW SOMETHING SHE SAYS THEY SAY EITHER YOU ARE LYING OR YOU ARE STUPID AND I AM NEITHER LUCILLE AND FELIX BLOCH MET IN ITALY IN 1957 WHERE THEY WERE BOTH STUDYING FOREIGN POLICY RAMIRO RUGGIERO THEN A CLASSMATE AND TODAY ITALY'S REPRESENTATIVE TO THE INTERNATIONAL CIVIL AVIATION ORGANIZATION RECALLS TWO CHARMING HIGHLY ESTEEMED PEOPLE FELIX WAS DARK AND OF AUSTRIAN DESCENT LUCILLE WAS BLONDE FROM AN OLDLINE SOUTHERN FAMILY THEY MARRIED AND EMBARKED ON A GLOBEHOPPING FOREIGNSERVICE CAREER AS A FOREIGNSERVICE WIFE SHE DID VOLUNTEER WORK SERVED ON COMMITTEES AND ENTERTAINED VISITING AMERICANS FROM MEMBERS OF CONGRESS TO SUPREME COURT JUSTICES IT WAS NOTHING FOR ME TO HAVE A BLACKTIE SITDOWN DINNER PARTY FOR 40 SHE SAYS PATRICIA RYAN WHO WORKS WITH AN ASSOCIATION OF FOREIGNSERVICE WIVES SAYS IN A SURVEY DONE IN THE LATE 1970S THAT THE AVERAGE WIFE OF A FOREIGNSERVICE OFFICER SPENT BETWEEN 20 AND 60 HOURS A WEEK ON UNPAID ACTIVITIES THE STATE DEPARTMENT OPERATED ON THE ASSUMPTION THEY GOT TWO FOR THE PRICE OF ONE SAYS JOHN HOLDRIDGE AMBASSADOR IN SINGAPORE AND IN INDONESIA AND LATER AN ASSISTANT SECRETARY OF STATE INDEED WIVES' PERFORMANCES WERE RATED ALONG WITH THEIR HUSBANDS' AMONG OTHER THINGS THEY NOTED WHETHER I MADE THE PROPER CALLS AT THE PROPER TIME MRS BLOCH EXPLAINS WHEN YOU ARRIVED AT POST YOU HAD TO FIND A BABY SITTER IMMEDIATELY AND CALL ON MADAME AMBASSADOR WITHIN 24 HOURS OR YOUR NAME WOULD BE MUD YOU WERE SUPPOSED TO CARRY WHITE GLOVES AND MAKE THE ROUNDS DEPOSITING CALLING CARDS DURING THEIR 30 YEARS TOGETHER THE BLOCHS LIVED IN SIX COUNTRIES AS MR BLOCH ROSE IN THE RANKS THEIR SITUATION GREW MORE LUXURIOUS WHEN HE BECAME SECOND IN COMMAND IN THE EMBASSY IN VIENNA IN 1983 THEY WERE GIVEN A 30ROOM VILLA A CAR AND DRIVER AND A HALF DOZEN SERVANTS THE MARRIAGE HAD SOME STRAINS HE WAS A WORKAHOLIC AND HAD A LOUSY TEMPER MRS BLOCH SAYS MOSTLY THOUGH SHE RECALLS A COURTLY AND LOVING HUSBAND HER DAUGHTERS REMEMBER A EUROPEANSTYLE FATHER WHO WAS PROPER AND DETACHED BUT STILL AFFECTIONATE THEY ARE BOTH PEOPLE WHO LOVE THEIR FAMILY ENORMOUSLY IN DIFFERENT WAYS SAYS 32YEAROLD KATHIE SWENSON THEIR OLDER DAUGHTER ONLY IN RETROSPECT DO CERTAIN EVENTS SEEM TROUBLING TO THE FAMILY WHEN THEY WERE IN BERLIN BETWEEN 1970 AND 1975 ANDREA BLOCH 30 SAYS HER FATHER BEGAN TO RAIL AGAINST GOD AND THE EVILS OF MAN HE STOPPED GOING TO CHURCH IT WAS INCREDIBLE THE DARKNESS OF IT ALL SHE SAYS LATER IN VIENNA MS BLOCH SAYS SHE FOUND A MASSAGEPARLOR FLYER ON HER FATHER'S DESK BUT AT THE TIME NOTHING SEEMED SERIOUSLY AMISS MRS BLOCH NEVER THOUGHT TO PRY INTO HER HUSBAND'S LONG HOURS OR WEEKENDS WORKING HE HAD SECURITY CLEARANCES AND SHE DIDN'T WE DIDN'T PRESS OUR HUSBANDS FOR INFORMATION SHE SAYS IT WAS AN UNWRITTEN CODE OF CONDUCT FOR ME IT WOULD HAVE BEEN UNETHICAL TO HAVE DONE SO AS FOR DALLIANCES IF THERE WERE ANY MRS BLOCH DIDN'T KNOW ABOUT THEM HE ALWAYS ADMIRED LADIES BUT HE WASN'T A SKIRT CHASER SHE SAYS IN 1987 THE BLOCHS CAME BACK TO WASHINGTON WHERE MR BLOCH WAS PUT IN CHARGE OF EUROPEAN POLITICAL AND ECONOMIC AFFAIRS THEN IN JUNE 1989 DURING THAT FATEFUL CAR RIDE MRS BLOCH SAYS HER HUSBAND TOLD HER THAT FBI AGENTS HAD SHOWED UP AT HIS OFFICE AT THE STATE DEPARTMENT ACCORDING TO LATER NEWS ACCOUNTS THEY ALLEGED THAT THE BRIEFCASE MR BLOCH HAD BEEN VIDEOTAPED PASSING TO A SUSPECTED KGB AGENT IN PARIS CONTAINED STATE SECRETS MRS BLOCH SAYS HER HUSBAND TOLD THEM HE WAS HANDING STAMPS TO A FELLOW AFICIONADO ON JULY 21 THE CASE BECAME PUBLIC THE STORY BROKE ON ABC NEWS WITH A SIMULATED TAPE OF THE BRIEFCASE SWAP IT WAS ANDREA BLOCH'S 26TH BIRTHDAY SHE RECALLS SITTING IN FRONT OF HER TELEVISION AND SCREAMING THAT'S NOT MY FATHER THE ABC STORY SET OFF A MASSIVE MEDIA CHASE FROM THEN ON THE COUPLE WAS NEVER ALONE EVERYWHERE THEY WENT FBI AGENTS AND TV CAMERAS FOLLOWED THEY SURROUNDED THE BLOCHS' HOUSE IN WASHINGTON WHEN THE BLOCHS WENT TO THEIR OLDEST DAUGHTER'S HOUSE IN CHAPPAQUA REPORTERS CAMPED OUT UNDER BEACH UMBRELLAS NEIGHBORHOOD CHILDREN CHARGED BYSTANDERS TO USE THEIR FAMILIES' BATHROOMS REPORTERS TRAILED BEHIND MR BLOCH ON HIS JOGS THROUGH THE NEIGHBORHOOD THERE WAS A TELEVISED INTERVIEW WITH A REPUTED VIENNESE PROSTITUTE WHO CLAIMED MR BLOCH PAID HER FOR SADOMASOCHISTIC ENCOUNTERS MRS BLOCH WAS AGHAST I HAD TO WATCH TELEVISION MY CHILDREN HAD TO WATCH TELEVISION AND WATCH A WHORE TALKING ABOUT THEIR FATHER IT WAS GODAWFUL I WAS THUNDERSTRUCK IT WAS JUST ANOTHER HAMMER BLOW TO MY HEAD KATHIE SWENSON PREGNANT WITH HER FIRST CHILD AT THE TIME SAYS IT WAS LIKE WHAT KINDS OF THINGS PEOPLE COULD PULL OUT TO TORTURE US WITH THIS WEEK MRS BLOCH WAS FACING ANOTHER KIND OF TORTURE BECAUSE OF THE FBI SURVEILLANCE SHE AND HER HUSBAND COULDN'T TALK FREELY WE COULD NOT SPEAK IN OUR HOUSE OR GO FOR A WALK SHE SAYS SO SHE TOOK HIM INTO THE STAIRWELL OF THEIR WASHINGTON CONDOMINIUM WHERE FINALLY HE SAID I HAVE CERTAIN SECRETS AND I WILL GO TO MY GRAVE WITH THEM' SHE SAYS HE NEVER ELABORATED NO MATTER HOW MUCH SHE PRESSED SHE SAYS HE ADMITTED ONLY TO HAVING SEEN THE AUSTRIAN PROSTITUTE THEN ALL AT ONCE JUST AS SUDDENLY AS THE CROWDS HAD COME THEY VANISHED THE INVESTIGATIONS BY THE STATE DEPARTMENT THE FBI THE JUSTICE DEPARTMENT AND AUSTRIAN AUTHORITIES HADN'T TURNED UP ENOUGH TO INDICT FELIX BLOCH DURING THE HEAT OF THE INVESTIGATION LUCILLE BLOCH WAS ASKED TO LEAVE HER JOB AS EXECUTIVE DIRECTOR OF THE AMERICAN AUSTRIAN FOUNDATION INC THE FOUNDATION WHICH PROMOTES AUSTRIANAMERICAN RELATIONS DIDN'T WANT THE BAD PUBLICITY WE BELIEVE THAT LUCILLE WAS AN INNOCENT VICTIM OF CIRCUMSTANCES SAYS THOMAS J MCGRATH SECRETARY OF THE NEW YORKBASED FOUNDATION THESE THINGS HAPPEN WOULD HE TAKE HER BACK TODAY WE'VE GONE ON A DIFFERENT COURSE SINCE THEN HE SAYS OLD FRIENDS FROM THE DIPLOMATIC CORPS SNUBBED HER AT GATHERINGS AND WALKED BY HER AT THE THEATER SAYS PHILIP KAISER WHO WAS AMBASSADOR IN VIENNA WHEN THE BLOCHS FIRST ARRIVED THERE MEMBERS OF INSTITUTIONS AREN'T PARTICULARLY COURAGEOUS IN THIS SITUATION SOME FRIENDS HAVE TRICKLED BACK BUT MRS BLOCH'S CHRISTMAS CARD LIST WHICH ONCE NUMBERED OVER 300 NAMES IS DOWN TO 50 WAS FELIX BLOCH A SPY THE THREE WOMEN SAY THEY STILL DON'T KNOW MRS BLOCH SAYS THE GOVERNMENT SHOULD MAKE UP ITS MIND IF HE DID COMMIT TREASON LET HIM BE CHARGED AND SENT TO JAIL MRS SWENSON SAYS SHE DOESN'T NEED TO KNOW ANDREA BLOCH SAYS SHE ISN'T CERTAIN BOTH DAUGHTERS SAY THEY STILL LOVE THEIR FATHER AND SEE HIM FROM TIME TO TIME BUT ANDREA RESENTS HIS SILENCE I AM VERY TIRED OF REACHING OUT AND SAYING HELP ME HELP ME TO UNDERSTAND HELP ME TO COME TO GRIPS TALK TO ME TODAY MRS BLOCH DOES VOLUNTEER WORK FOR INSTANCE HELPING THE UNIVERSITY OF NORTH CAROLINA PREPARE FOR ITS 200TH ANNIVERSARY SHE HAS WRITTEN A MEMOIR OF HER EXPERIENCE AND LIVES OFF THE COUPLES' SAVINGS SHE HAS BEEN LOOKING FOR A JOB MRS BLOCH WANTS HER NAME CLEARED OF ALL SUSPICION THE FBI ACCORDING TO ITS OWN PRACTICE WON'T SAY IF SHE WAS EVER BEING SCRUTINIZED MUCH LESS WHETHER SHE IS UNDER ANY SUSPICION TODAY IF SHE HAS DONE SOMETHING WHY HASN'T THE GOVERNMENT INDICTED HER IF SHE HASN'T DONE ANYTHING WHY HAVEN'T THEY EXONERATED HER ASKS WENDY WASSERMAN AN AIDE TO DEMOCRATIC REP PATRICIA SCHROEDER WHO HAS TAKEN UP MRS BLOCH'S CASE MRS BLOCH IS ANGRY TOO THAT THE STATE DEPARTMENT INVOKED A RARELY USED LAW CONCERNING NATIONAL SECURITY TO FIRE FELIX BLOCH AND LATER TO DENY THE COUPLE THEIR PENSION AND HEALTH BENEFITS SHE WORRIES ABOUT HER HEALTH AFTER SHE LOSES HER SHARE IN THE HEALTH INSURANCE THAT FELIX GETS FROM HIS BUSDRIVING JOB SHE IS HARDLY DESTITUTE SHE LIVES IN THE THREEBEDROOM THREEBATH RANCH THE COUPLE BOUGHT IN A NICE SECTION OF CHAPEL HILL WHEN THE COUPLE DIVORCES SHE EXPECTS A SHARE OF THEIR LIFE SAVINGS STILL WITH NO INDEPENDENT INCOME SHE IS ALREADY DRAWING DOWN THE PRINCIPAL OF THAT SAVINGS WHAT'S MORE SHE THINKS THAT WHATEVER HAPPENS TO FELIX'S SHARE OF THE PENSION SHE IS ENTITLED TO HERS RECENTLY SHE HAS BEEN CONTACTING FEMINIST LAWYERS AND INITIATING A LETTERWRITING CAMPAIGN HOPING TO PERSUADE CONGRESS TO RESTORE THE PENSION I'M STANDING ON PRINCIPLE AS MUCH AS ANYTHING SHE SAYS SOME PEOPLE THINK IT IS RIGHT THAT MRS BLOCH SHARES IN HER HUSBAND'S TRAVAILS THEY WERE MARRIED FOR 30SOME YEARS SAYS ONE FORMER MEMBER OF THE EMBASSY STAFF IN VIENNA YOU TAKE THE GOOD WITH THE BAD BUT OTHERS DISAGREE SAYS KAY POLANSKY A FRIEND AND HERSELF A FOREIGNSERVICE SPOUSE I FIND IT FRIGHTENING SHE IS BEING TREATED AS IF SHE DOESN'T EXIST 9310200155 931020 INTERNATIONAL HITACHI TO BOOST LCD OUTPUT TOKYO HITACHI LTD HAS DECIDED TO INVEST HEAVILY TO BOOST ITS OUTPUT OF LIQUID CRYSTAL DISPLAYS OVER THE NEXT FEW YEARS A COMPANY SPOKESWOMAN SAID TUESDAY HITACHI A MAJOR JAPANESE ELECTRIC MACHINERY MAKER HAS DECIDED TO INVEST AN ADDITIONAL 30 BILLION YEN 279 MILLION IN NEW LCD PRODUCTION CAPACITY OVER THE NEXT YEAR THE SPOKESWOMAN SAID THE NEW FACILITIES WHICH WILL BEGIN OPERATION AROUND THE END OF 1994 WILL EVENTUALLY RAISE HITACHI'S LCD CAPACITY BY 100000 UNITS A MONTH 9310200154 931020 ENTERTAINMENT QVC'S DILLER HAS BIG PLANS FOR PARAMOUNT BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL WHAT WOULD BARRY DILLER DO WITH PARAMOUNT COMMUNICATIONS INC IF HE GOT IT PUBLICLY MR DILLER HAS DISCLOSED PRACTICALLY NONE OF HIS PLANS FOR PARAMOUNT'S ENTERTAINMENT AND PUBLISHING OPERATIONS BUT IN PRIVATE MEETINGS WITH POTENTIAL INVESTORS AND ANALYSTS TO SELL THE MERITS OF QVC NETWORK INC'S HOSTILE BID FOR PARAMOUNT MR DILLER HAS BEEN MORE FORTHCOMING AMONG OTHER THINGS PEOPLE WHO HAVE MET WITH HIM SAY MR DILLER HAS SUGGESTED THAT HE WOULD DEVELOP INTERACTIVE TV PROGRAMMING FROM PARAMOUNT PUBLISHING FRANCHISES LIKE BETTY CROCKER COOKBOOKS FROMMER TRAVEL BOOKS AND JK LASSER TAX GUIDES MR DILLER 51 YEARS OLD HAS ALSO SUGGESTED THAT HE WOULD OVERHAUL PARAMOUNT'S MANAGEMENT WHICH HE HAS CRITICIZED AS INEFFECTIVE IN STRATEGICALLY POSITIONING THE COMPANY FOR THE FUTURE THAT OUTRAGES PARAMOUNT WHICH HAS ALREADY AGREED TO BE ACQUIRED BY VIACOM INC AND WHERE MR DILLER ONCE WORKED AS HEAD OF THE STUDIO BEFORE LEAVING IN 1984 AFTER A CLASH WITH PARAMOUNT CHIEF EXECUTIVE MARTIN DAVIS WHO IS NOW 66 IN AN UNUSUALLY TERSE STATEMENT RESPONDING TO A REQUEST FOR COMMENT PARAMOUNT SAID PARAMOUNT HAS GREAT ASSETS EVEN BARRY DILLER SAYS SO WHY ARE THEY GREAT ASSETS WHY HAS PARAMOUNT PERFORMED SO WELL SIMPLE BECAUSE THEY WERE STRATEGICALLY SHAPED AND DEVELOPED BY THIS MANAGEMENT IT WAS THIS MANAGEMENT THAT TOOK AN UNWIELDY CONGLOMERATE OF THE '70S AND TURNED IT INTO A GREAT ENTERTAINMENT AND PUBLISHING COMPANY AND MR DILLER KNOWS IT HE WATCHED FROM A DISTANCE VIACOM AND PARAMOUNT HAVE BEEN COUNTERING MR DILLER'S MESSAGE WITH THEIR OWN BARRAGE OF INVESTOR AND ANALYST MEETINGS DENIGRATING QVC AS A SECONDRATE SHOPPING CHANNEL WITH NO GLOBAL REACH AND LITTLE MORE THAN PIPE DREAMS FOR THE FUTURE VIACOM THEY NOTE BRINGS TO THE TABLE STRONG GLOBAL FRANCHISES SUCH AS MTV NETWORKS RERUNS OF HITS LIKE ROSEANNE AND THE COSBY SHOW AND CABLE SYSTEMS SERVING 11 MILLION SUBSCRIBERS WE HAVE A HIGHLY DEVELOPED STRATEGIC VISION FOR OUR ASSETS WHICH INCLUDES A MERGER WITH VIACOM OPENING NEW OPPORTUNITIES FOR THE COMBINED COMPANY THAT ARE DRAMATIC AND UNLIMITED PARAMOUNT SAID GIVEN THIS RECORD OF THE PARAMOUNT MANAGEMENT IT IS CLEAR THAT MR DILLER'S I CAN DO IT BETTER' CRY IS JUST THAT A CRY BUT A NUMBER OF ANALYSTS AND MONEY MANAGERS WHO ALREADY LIKE MR DILLER'S HIGHER OFFER FOR PARAMOUNT ARE ALSO IMPRESSED BY HIS STRATEGIC PLANS AND THEY SEEM DAZZLED BY WHAT SOME ENTERTAINMENT PUNDITS CALL THE CULT OF BARRY DILLER THEY ARE PARTICULARLY IMPRESSED BY HIS TRACK RECORD HE SUCCESSFULLY HEADED BOTH THE PARAMOUNT AND FOX FILM STUDIOS STARTED THE FOX TELEVISION NETWORK AND ONCE RAN ABC'S PRIMETIME PROGRAMMING EQUALLY IMPORTANT MR DILLER HAS PERSONALLY MADE THE ROUNDS OF ANALYSTS SPENDING HOURS IN ONEONONE MEETINGS BEING ACCESSIBLE TO THEM BY PHONE AND SOLICITING THEIR OPINIONS I'VE HEARD THE PITCH FROM BARRY DILLER AND IT IS VERY EFFECTIVE SAYS HAL VOGEL AN ANALYST AT MERRILL LYNCH & CO ADDS ANOTHER ANALYST WHO LIKE OTHERS DECLINES TO BE QUOTED FOR FEAR OF APPEARING TO TAKE SIDES VIACOM HAS NOT RESPONDED WITH THE SAME KIND OF INTIMATE TREATMENT MR DILLER HAS ALREADY PERSUADED AT LEAST TWO BIG NEW INVESTORS CABLE GIANT COX ENTERPRISES INC AND THE NEWHOUSE FAMILY'S PUBLISHING AND CABLE EMPIRE ADVANCE PUBLICATIONS INC TO KICK IN A TOTAL OF 1 BILLION TO HELP HIM REALIZE HIS VISION VIACOM HAS LINED UP BLOCKBUSTER ENTERTAINMENT CORP AND NYNEX CORP TO INVEST A TOTAL OF 18 BILLION STILL MANY ON WALL STREET NOTE THAT MR DILLER'S PRESENTATIONS ARE LONG ON VISION AND SHORT ON NUMBERS WHILE VIACOM'S MORE FINANCIALLY ORIENTED MANAGERS MAKE A MORE COMPELLING ECONOMIC CASE BOTH COMPANIES MAKE A GOOD CASE IN DIFFERENT WAYS SAYS JOHN TINKER AN ANALYST AT FURMAN SELZ INC BARRY DILLER IS A CHARISMATIC COMPELLING LEADER AND ONE OF THE STRONGER CREATIVE MINDS IN THE BUSINESS BUT VIACOM IS BETTER AT GETTING THE MOST FINANCIALLY OUT OF ITS ASSETS MR TINKER HAS BUY RECOMMENDATIONS ON BOTH QVC AND VIACOM IN OUR MEETINGS WE TALK ABOUT THE OBVIOUS STRATEGIC ADVANTAGES OF PUTTING PARAMOUNT TOGETHER WITH A GLOBAL MEDIA COMPANY LIKE VIACOM AGAINST THE ADVANTAGE OF QVC WHICH IS ESSENTIALLY A SHOPPING CHANNEL SAYS VIACOM'S CHAIRMAN SUMNER REDSTONE 70 ANALYSTS EXPECT VIACOM TO MAKE SOME CHANGES AT PARAMOUNT IF ITS MERGER SUCCEEDS BUT MR REDSTONE SAYS WHAT'S BEING DISCUSSED NOW ARE THINGS LIKE HAVING PARAMOUNT'S STUDIOS MAKE MOVIES BASED ON SUCH VIACOM PROGRAMS AS BEAVIS AND BUTTHEAD AND NICKELODEON BUT MR DILLER'S CRITIQUES OF PARAMOUNT RING TRUE TO MANY ON WALL STREET PARAMOUNT'S MR DAVIS WON HIGH MARKS FOR RESTRUCTURING THE COMPANY FORMERLY GULF & WESTERN TO FOCUS ON ENTERTAINMENT AND PUBLISHING MORE RECENTLY CRITICS SAY PARAMOUNT HAS FAILED TO TAKE ADVANTAGE OF OPPORTUNITIES TO EXPAND ITS BUSINESSES AND STRENGTHEN ITS ENTERTAINMENT OPERATIONS FOR EXAMPLE PARAMOUNT LIKE NEWS CORP'S FOX INC BOUGHT A GROUP OF TELEVISION STATIONS AND BUILT A STRONG TV PROGRAMMING OPERATION AT ITS PARAMOUNT PICTURES UNIT BUT IT WAS FOX UNDER MR DILLER THAT TOOK THE RISK OF MELDING TV STATIONS AND PROGRAMMING INTO A FOURTH BROADCAST NETWORK MR DILLER HAS INDICATED TO ANALYSTS THAT WITHOUT A NETWORK THE PARAMOUNT TV STATIONS ARE NO LONGER A STRATEGIC ASSET AND SHOULD BE SOLD THE COMPANY CAN STILL FORM A PROGRAM NETWORK AND RELY ON OTHER OUTLETS FOR DISTRIBUTION THE THEORY GOES MR DILLER HAS ALSO BEEN CRITICAL OF THE WAY PARAMOUNT HAS RUN ITS MOVIE STUDIO MAKING TOO MANY BIG BUDGET FILMS SUCH AS CLEAR AND PRESENT DANGER THE FIRM AND BEVERLY HILLS COP 3 ALTHOUGH THE STUDIO SAYS IT PLANS OVER TIME TO DISTRIBUTE UP TO 25 FILMS ANNUALLY IT DISTRIBUTED ONLY 17 FILMS LAST YEAR THAT GARNERED SLIGHTLY LESS THAN 10 OF THE MARKET BY CONTRAST TIME WARNER INC'S WARNER BROS DISTRIBUTED 28 FILMS FOR A 198 SHARE AND WALT DISNEY CO PUT OUT 27 FOR 194 OF THE MARKET ACCORDING TO VARIETY IF QVC WINS THE BATTLE FOR PARAMOUNT MR DILLER IS EXPECTED TO OVERHAUL MANAGEMENT AT THE PARAMOUNT STUDIO AND SHARPLY INCREASE PRODUCTION COX ENTERPRISES CHAIRMAN JAMES C KENNEDY SAYS MR DILLER TOLD HIM ONE OF THE FIRST THINGS HE WILL DO IS FIX THE STUDIO HE SAID HE WILL IMPROVE THE EXISTING BUSINESS MR DILLER HAS ALSO TOLD INVESTORS THAT HE BELIEVES THAT MADISON SQUARE GARDEN AND THE KNICKS AND RANGERS SPORTS TEAMS HAVE BEEN UNDERUTILIZED THE MSG NETWORK A CABLE SPORTS NETWORK HAS BEEN A BIT PLAYER COMPARED WITH CAPITAL CITIES/ABC INC'S ESPN FOR EXAMPLE MR DILLER HAS EXPRESSED RESPECT FOR PARAMOUNT PUBLISHING'S CHIEF RICHARD SNYDER BUT HAS INDICATED THAT HE BELIEVES THE PUBLISHING COMPANY'S ASSETS SHOULD BE EXPLOITED MORE FULLY FOR INTERACTIVE BUSINESS OPPORTUNITIES ANALYSTS SAY IN HIS OWN STATEMENT MR DILLER SAID HE INITIALLY JOINED QVC LAST YEAR BECAUSE I BELIEVED THAT THE FUTURE WOULD GO TO THOSE WHO WERE INVOLVED IN THE ARCHITECTURE OF INTERACTIVITY AT THE CONVERGENCE OF THE TELEPHONE COMPUTER AND TELEVISION SET THOSE THAT HAVE VISITED QVC'S HEADQUARTERS SAW THE POWER OF THE INFRASTRUCTURE THAT HAD BEEN BUILT AND BELIEVED WITH ME THAT QVC'S STRATEGY TO LAY DOWN INTERACTIVE DISTRIBUTION TRACKS IN RETAILING INFORMATION AND EDUCATION SERVICES WAS A SOUND ONE AND THAT IS EXACTLY THE UNDERLYING ARGUMENT FOR WHY QVC AND PARAMOUNT SHOULD BE COMBINED ANITA SHARPE CONTRIBUTED TO THIS ARTICLE 9310200153 931020 HEICO UNIT ACQUISITION HOLLYWOOD FLA HEICO CORP'S MEDITEK HEALTH CORP UNIT COMPLETED THE ACQUISITION OF PREMIER IMAGING ASSOCIATES LP OF ATLANTA AND ITS RELATED SERVICE AND MANAGEMENT CONTRACTS FOR 63 MILLION PAYABLE IN CASH AND NOTES THE COMPANY SAID PREMIER OPERATES A MAGNETIC RESONANCE IMAGING UNIT SEPARATELY MEDITEK ENTERED INTO AN AGREEMENT TO ACQUIRE A SECOND MRI CENTER IN GEORGIA THE COMPANY EXPECTS TO CLOSE ON THE GEORGIA CENTER BY DEC 31 9310200151 931020 MITCHELL'S PLEDGE FOR RESEARCH THE WOODLANDS TEXAS TEXAS OIL MAN AND REALESTATE DEVELOPER GEORGE P MITCHELL PLEDGED 65 MILLION TO THE HOUSTON ADVANCED RESEARCH CENTER A PRIVATE RESEARCH FOUNDATION ESTABLISHED IN 1982 MR MITCHELL CHAIRMAN AND FOUNDER OF MITCHELL ENERGY & DEVELOPMENT CORP SAID THAT HE AND HIS FAMILY WILL GIVE A 15 MILLION GRANT TO THE FOUNDATION KNOWN AS HARC AND WILL ESTABLISH A 50 MILLION ENDOWMENT WITHIN THE NEXT FIVE YEARS HARC LOCATED IN THE WOODLANDS NORTH OF HOUSTON IS A NONPROFIT ORGANIZATION THAT FOCUSES ON RESEARCH AND TECHNOLOGY DEVELOPMENT IN ENERGY MEDICINE AND THE ENVIRONMENT THE GROUP WAS FOUNDED WHEN MR MITCHELL AND HIS COMPANY DONATED 100 ACRES AND 82 MILLION OF STARTUP MONEY THEY HAVE CONTRIBUTED AN ADDITIONAL 27 MILLION SINCE 9310200150 931020 WHO'S NEWS THORN EMI PLC THORN EMI PLC LONDON RALPH SIMON 46 YEARS OLD WAS APPOINTED EXECUTIVE VICE PRESIDENT FOR CAPITOL RECORDS INC AND WILL OVERSEE EXECUTIVE AND OPERATIONAL FUNCTIONS OF THE LOS ANGELESBASED RECORD LABEL 9310200149 931020 MURDERING MELODIES CHINESE ARE MAD ABOUT THEIR KARAOKE IMPORTED JAPANESE SINGALONG HAS MANY ASIANS CROONING MY WAY' THEIR OWN WAY BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL BINGLINGSI CHINA TOUR GUIDE CY KUO OF TAIWAN HAS TRAVELED EIGHT HOURS BY PLANE THREE BY CAR TWO BY FERRY AND MORE THAN A THOUSAND YEARS BACK IN HISTORY TO REACH AN ANCIENT BUDDHIST MONASTERY IN WESTERN CHINA NEAR THE END OF HIS JOURNEY AS THE BATTERED BOAT GASPS INTO A NARROW GORGE MR KUO IS INSPIRED INSPIRED TO SWILL SOME YELLOW RIVER BEER AND BELT OUT A FEW KARAOKE FAVORITES HE GRABS A MICROPHONE AND STARTS TO SING WHEN YOU LEAVE I WEEP THE STOCKY 48YEAROLD WAILS IN CHINESE WHEN YOU RETURN I SMILE HEARING THE BLARE 44YEAROLD FELLOW TAIWANESE TRAVELER TSAI CHIA RUSHES OVER HE SEIZES A SECOND MICROPHONE WIRED TO MR KUO'S SMALL AMPLIFIER AND PROMPTLY JOINS IN AN OFFKEY DUET OF THE CLASSIC LOVE SONG PHOENIX FLYING IN THE SUN A FRENCH TOUR GROUP ALSO ON THE FERRY LOOKS ON INCREDULOUS THIS IS VERY GOOD SAYS MR TSAI WHO BY THE TIME HE GOT TO PHOENIX WAS ALREADY A BIT FLUSHED RELINQUISHING THE MICROPHONE OF THE BATTERYOPERATED KARAOKE TAPE DECK TO ANOTHER TOURIST MR TSAI OBSERVES THAT KARAOKE IS RIGHT FOR ANY OCCASION THAT'S THE ATTITUDE OF MANY ASIANS THESE DAYS ONCE MAINLY AFTERDINNER ENTERTAINMENT FOR JAPANESE SALARYMEN PARTIAL TO MY WAY SINGING ALONG TO RECORDED INSTRUMENTALS OF HIT SONGS IS AN INCREASINGLY POPULAR FORM OF ENTERTAINMENT ELSEWHERE IN ASIA INDEED BY JAPAN'S RELATIVELY SEDATE STANDARDS ASIA'S ENTHUSIASM FOR KARAOKE CAN BE EXTREME IN TROPICAL INDONESIA LIVE WALLABIES AND PEACOCKS PARADE OVER A PUTTING GREEN IN A MANSIONTURNEDKARAOKE BAR CALLED SHIKA THE BAR HAS MUSLIM HOSTESSES AND A SONG MENU OF MORE THAN 1000 RECORDINGS INCLUDING FROSTY THE SNOWMAN IN SEOUL SOUTH KOREA BATHHOUSE PATRONS CAN SING WHILE THEY SOAK THE COCKPIT HOTEL IN SINGAPORE HAS WHAT A MANAGER CALLS LIVE KARAOKE GUESTS SING ALONG WITH A PHILIPPINE BAND SECRETARIES IN HONG KONG HAVE BEEN KNOWN TO SKIP LUNCH TO SING FOR AN HOUR KARAOKE ISN'T ALWAYS JUST GOOD CLEAN FUN KARAOKE LOVERS OFTEN MURDER MELODIES BUT SOME ACTUALLY KNOCK OFF FELLOW CROONERS FIGHTS OVER MICROPHONES OFFKEY SINGING AND EVEN OVER KARAOKECLUB HOSTESSES HAVE RESULTED IN KILLINGS FROM MALAYSIA TO ENGLAND IN THAILAND AND TAIWAN MANY KARAOKE CLUBS ARE FRONTS FOR THE SEX INDUSTRY HONG KONG POLICE HAVE ARRESTED HUNDREDS OF TEENAGE GIRLS FOR DOING MORE THAN SINGING ALONG KARAOKE IS THE FRANKENSTEIN'S MONSTER OF ENTERTAINMENT TECHNOLOGY COMPLAINS A DIPLOMAT IN BEIJING WHO RECENTLY WAS ASKED TO JOIN A SINGALONG SESSION AT THE END OF A MIDDAY MEETING INDEED IT IS AGREES JOHN FRANKENSTEIN WHO LECTURES ON BUSINESS AT HONG KONG UNIVERSITY AND NOWHERE MORE SO THAN IN CHINA WHICH IS JUST EMERGING FROM FOUR DECADES OF SERIOUS COMMUNISM IT'S STILL DECOMPRESSING HE EXPLAINS THEY FINALLY HAVE A CHANCE TO CUT LOOSE AND LET GO THE CHINESE AREN'T MISSING THE CHANCE A DAILY TRAIN FROM JINAN IN NORTHEAST CHINA TO THE PORT CITY OF QINGDAO INCLUDES A DEDICATED KARAOKE CAR WITH PRIVATE ROOMS THAT TUNELOVING TRAVELERS CAN RENT YOUNG WOMEN IN SHORT SKIRTS AND SPANGLED SASHES ENCOURAGE PASSENGERS TO SIGN UP AS THEY BOARD THE TRAIN CROONERS ON THE MOVE CAN ALSO BUY LUXURY AUTOMOBILES FITTED WITH KARAOKE SYSTEMS MOTORISTS SING INTO A MICROPHONE AND SEE THE WORDS TO SONGS ON A TELEVISION SCREEN THEY'RE THE PERFECT BRIBE FOR OFFICIALS A HONG KONG SALESMAN TOLD A NEWSPAPER REPORTER MOVIE THEATERS ARE BEING TURNED INTO KARAOKE CLUBS IN SOME BIG CITIES COMMUNIST PARTY WORK UNITS HAVE SET UP KARAOKE CENTERS EVEN IN RURAL VILLAGES NEARLY EVERY HOTEL HAS A KARAOKE BAR IN LANZHOU THE CAPITAL OF REMOTE GANSU PROVINCE THE JINCHENG HOTEL'S WOODSMAN KARAOKE BAR IS DECORATED WITH HUGE TREE TRUNKS CHINA'S SENIOR MILITARY OFFICIALS LIKE TO RELAX IN BEIJING'S POSHEST KARAOKE SPOTTHE POINT AFTERWHICH HAPPENS TO BE IN THE FIVESTAR PALACE HOTEL OWNED BY THE ARMY ONE EVENING RECENTLY A GAPTOOTHED DRUNK SANG THE BANANA BOAT SONG OVER AND OVER AS THREE DOZEN YOUNG WOMEN IN SHORT TAFFETA DRESSES PLAYED DRINKING GAMES WITH GUESTS TRYING TO SPEED THEM THROUGH THE 22 MINIMUM THE PURCHASE OF TWO COGNACS WILL DO THE TRICK THE TRULY POWERFUL THOUGH DON'T SETTLE IN AT THE TABLES THEY TAKE PRIVATE ROOMS WITH VIDEO KARAOKE PLAYERS THE STANDARD COST FOR AN EVENING IN A LARGE PRIVATE ROOM AT THE POINT AFTER AND OTHER SWISH BEIJING CLUBS 4600 YUAN THE EQUIVALENT OF 800 AT OFFICIAL EXCHANGE RATES WHO CAN AFFORD IT MANY COMPANY AND GOVERNMENT OFFICIALS AND MANY INDIVIDUALS CAN AND IT PAYS DIVIDENDS BECAUSE IT'S EXPENSIVE WHEN YOU TAKE SOMEONE THERE YOU GAIN A LOT OF FACE SAYS MR FRANKENSTEIN IT'S A GOOD WAY TO SPEND MONEY THE KARAOKE FAD IF THAT'S WHAT IT IS HAS ATTRACTED HEAVY INVESTMENT TOO MUCH MAYBE SO MANY KARAOKE BARS HAVE OPENED IN GUANGDONG PROVINCE ADJACENT TO HONG KONG THAT BEIJING SPECIFICALLY TARGETED THEM AS ONE KIND OF INVESTMENT IT WANTED TO CUT OFF WHEN IT BEGAN TO SQUEEZE CREDIT LAST SUMMER TO DISCOURAGE SPECULATING IN REAL ESTATE AN ECONOMIST CLAIMS THE WORLD BANK WITHOUT QUITE MEANING TO IS INDIRECTLY BANKROLLING KARAOKE A BIG WORLD BANK LOAN TO HELP DEVELOP CASH CROPS IN GUANGDONG PROVINCE IS BEING USED TO DEVELOP BANANA FIELDS IN REMOTE AREAS HE SAYS WHILE EXISTING BANANA FIELDS NEARER TO URBAN CENTERS ARE BEING PLOWED UNDER TO MAKE WAY FOR NEW DEVELOPMENTS THAT INEVITABLY INCLUDE KARAOKE BARS THAT'S GOOD NEWS TO MR KUO ABOARD THE FERRY NEAR BINGLINGSI RIGHT NOW I HAVE TO TAKE THIS EVERYWHERE HE GRUMBLES WAVING HIS PORTABLE KARAOKE APPARATUS GUY DEL PERUGIA A SILVERHAIRED 69YEAROLD FRENCH TOURIST HIS CURIOSITY PIQUED BY THE SIGHT OF NEW TECHNOLOGY ASKS IN FRENCH WHAT IS THIS KARAOKE MR KUO REPLIES USING HIS CROSSCULTURAL TOURGUIDE SKILLS TO GUESS AT THE QUESTION I'LL SHOW YOU HE POPS IN A NEW TAPE THROWS BACK HIS HEAD AND STARTS SINGING AND DANCING AS THE BOAT CHUGS PAST BARREN COASTLINE ENOUGH MR DEL PERUGIA QUICKLY SAYS AS MR KUO WANDERS OFF SINGING I WAS A PRISONER IN VIETNAM FOR TWO YEARS I KNOW ASIA BUT THIS IS REALLY TERRIBLE 9310200147 931020 YOUR MONEY MATTERS MAKING SENSE OF THE HEALTH PLAN FOR TODAY'S FAMILIES BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL ONE OF THE COMPLICATIONS OF PRESIDENT CLINTON'S HEALTHCARE PROPOSAL IS THAT FEW FOLKS THESE DAYS ARE LIKE THE ANDERSONS IN FATHER KNOWS BEST THAT POPULAR 1950S TV PROGRAM IN WHICH DAD WENT OFF TO WORK AND MOM STAYED HOME WITH THE KIDS TAKE PETER HUTCHINGS A NEW YORK INSURANCE EXECUTIVE FOR INSTANCE HE WORKS HIS WIFE WORKS AND HIS EXWIFE WORKS HIS TWO SONS FROM HIS FIRST MARRIAGE GO TO SCHOOL IN OHIO AND MASSACHUSETTS HE'S TRYING TO FIGURE OUT WHO WOULD PAY WHAT TO WHOM UNDER THE CLINTON PLAN SO THEY ALL WOULD HAVE HEALTH INSURANCE HE'S NOT ALONE FOUR WEEKS AFTER MR CLINTON OUTLINED HIS HEALTHCARE VISION TO CONGRESS FAMILIES ACROSS THE COUNTRY STILL AREN'T SURE WHAT HIS PROPOSAL WOULD MEAN TO THEM WHILE CERTAIN BASIC PRINCIPLES ARE CLEAR SUCH AS UNIVERSAL COVERAGE PAID FOR MOSTLY BY EMPLOYERS MUCH LESS IS KNOWN ABOUT THE SPECIFICS OF HOW THE HEALTH PLAN WOULD WORK KANNAN RAGHUNANDAN AN ASSISTANT PROFESSOR OF ACCOUNTING AT BENTLEY COLLEGE IN WALTHAM MASS WONDERS WHETHER HE AND HIS WIFE ALSO A PROFESSOR WOULD HAVE TO PAY DOUBLE FOR COVERAGE FOR THEMSELVES AND THEIR THREEYEAROLD SON BECAUSE BOTH OF THEM WORK COUPLES WHO LIVE IN ONE STATE AND WORK IN ANOTHER OR WORK IN TWO DIFFERENT STATES AND LIVE IN A THIRD WANT TO KNOW WHERE THEY WOULD BE COVERED PARTTIME AND SELFEMPLOYED WORKERS ARE ASKING WHETHER THEY CAN CONTINUE TO BE COVERED UNDER A SPOUSE'S PLAN EVEN AS THE CLINTON ADMINISTRATION PUTS THE FINAL TOUCHES ON A BILL THAT IT WILL PROPOSE TO CONGRESS OFFICIALS ADMIT THAT A NUMBER OF ISSUES REMAIN TO BE RESOLVED SOME QUESTIONS WILL BE ANSWERED BY THE LEGISLATION OTHERS WILL HAVE TO WAIT UNTIL A PLAN IS IN PLACE THE AMOUNT OF WORK TO BE DONE ON THE DETAILS IS OVERWHELMING SAYS JAMES E BUCKLEY HEAD OF GROUPHEALTH CONSULTING FOR KPMG PEAT MARWICK THAT'S NOT A CRITICISM IT'S A FACT THE NUMBER OF DETAILS IN PART REFLECTS THE NUMBER OF OPTIONS THE CLINTON PLAN OFFERS PEOPLE COULD CHOOSE EITHER A FEEFORSERVICE PLAN IN WHICH THEY COULD PICK THEIR OWN DOCTOR AND A PORTION OF THE FEES WOULD BE REIMBURSED USUALLY 80 A HEALTH MAINTENANCE ORGANIZATION WHICH WOULD LIMIT THEIR CHOICE OF PROVIDERS TO THOSE IN THE HMO BUT REQUIRE JUST A SMALL COPAYMENT FOR EACH VISIT OR A PREFERRED PROVIDER PLAN WHICH OPERATES LIKE AN HMO WHEN NETWORK PROVIDERS ARE USED BUT REIMBURSES A PORTION OF THE FEES TYPICALLY 60 OR 70 CHARGED BY OUTOFNETWORK DOCTORS MOST PEOPLE WOULD BUY COVERAGE THROUGH REGIONAL PURCHASING POOLS CALLED ALLIANCES BUT COMPANIES WITH MORE THAN 5000 EMPLOYEES COULD OPT TO PROVIDE COVERAGE ON THEIR OWN CREATING CORPORATE ALLIANCES AMERICANS DON'T DO THINGS SIMPLY WE JUST DON'T CHECK THAT BOX SAYS STUART ALTMAN PROFESSOR OF NATIONAL HEALTH POLICY AT BRANDEIS UNIVERSITY STILL THERE ARE MANY ANSWERS IN THE 239PAGE WORKING DRAFT OF THE PROPOSAL AND IN COMMENTS BY PRESIDENT CLINTON AND OTHERS INVOLVED IN DRAWING UP THE PLAN THE RAGHUNANDANS WOULDN'T HAVE TO PAY TWICE FOR EXAMPLE THE EMPLOYER PORTION OF THE PREMIUM FOR FAMILY COVERAGE WOULD BE DIVIDED IN TWO AND MR AND MRS RAGHUNANDAN TOGETHER WOULD PAY THE REMAINDER THEIR SHARE MIGHT COME OUT OF THEIR PAYCHECKS AS A PAYROLL DEDUCTION OR THEY COULD BE ASKED TO WRITE A CHECK TO THEIR REGIONAL HEALTH ALLIANCE THE GOAL IS UNIVERSAL COVERAGE NOT MORE THAN UNIVERSAL COVERAGE SAYS PHYLLIS TORDA DIRECTOR OF HEALTH AND SOCIAL POLICY FOR FAMILIES USA A HEALTHCAREREFORM LOBBYING GROUP PEOPLE WOULD BE COVERED WHERE THEY LIVE A COUPLE WHO LIVE IN SUBURBAN NEW YORK AND WORK IN NEW JERSEY AND CONNECTICUT WOULD HAVE COVERAGE THROUGH A HEALTH PLAN IN NEW YORK IF THEY LIVE CLOSE TO THE STATE LINE THEIR PLAN COULD INCLUDE DOCTORS AND OTHER HEALTHCARE PROVIDERS IN BOTH STATES OR THEY COULD JOIN A PLAN IN THE NEIGHBORING STATE HEALTH PLANS WOULD BE ABLE TO MARKET ACROSS STATE BOUNDARIES MOST EMPLOYEES WOULD SIGN UP FOR HEALTH PLANS AT THEIR WORKPLACE MUCH AS THEY DO NOW INFORMATION ABOUT THE PLANS THEY CAN CHOOSE FROM WOULD BE AVAILABLE THROUGH THE PERSONNEL OR EMPLOYEE BENEFITS DEPARTMENT EMPLOYERS WOULD BE REQUIRED TO PAY AT LEAST 80 OF THE AVERAGE PREMIUM WITH INDIVIDUALS PAYING THE REMAINDER OF THE PREMIUM HOW MUCH THE TOTAL PREMIUM WOULD BE IS ONE OF THE UNANSWERED QUESTIONS THAT PROBABLY WON'T BE RESOLVED UNTIL AFTER LEGISLATION IS PASSED THE WORKING DRAFT INCLUDES ESTIMATES OF AN 1800 AVERAGE ANNUAL PREMIUM FOR INDIVIDUALS AND 4200 FOR FAMILIES BUT THERE'S SOME DEBATE OVER HOW REALISTIC THOSE ESTIMATES ARE RECENT SURVEYS OF MORE THAN 1000 FIRMS BY ACCOUNTANTS KPMG PEAT MARWICK FOUND THAT PREMIUMS RUN FROM ABOUT 1700 TO 2200 FOR INDIVIDUALS AND ABOUT 4600 TO 5300 FOR FAMILIES DEPENDING ON THE TYPE OF PLAN THE SIZE OF THE COMPANY AND THE LOCATION FEEFORSERVICE PLANS GENERALLY COST MORE THAN HMOS IN MOST CASES THE CURRENT COVERAGE IS LESS COMPREHENSIVE THAN WHAT HAS BEEN PROPOSED IN THE CLINTON PLAN IT'S INTENTIONAL THAT NOTHING IN THAT PROPOSAL TELLS YOU HOW MUCH YOU'RE GOING TO PAY SAYS PROF ALTMAN AT BRANDEIS IT WILL DEPEND ON THE COST IN YOUR REGION UNDER THE CLINTON PLAN STUDENTS SUCH AS MR HUTCHINGS'S TWO SONS COULD BE COVERED EITHER WHERE THEY GO TO SCHOOL OR WHERE THEIR PARENTS LIVE HEALTHCARE POLICY ANALYSTS SAY MANY COLLEGES AND UNIVERSITIES WOULD LIKELY FORM CORPORATE ALLIANCES TO COVER FACULTY STAFF AND STUDENTS ALTHOUGH THE DRAFT PROPOSAL DOESN'T STIPULATE AN AGE LIMIT FOR CHILDREN UNDER FAMILY COVERAGE ADMINISTRATION OFFICIALS AND OTHERS FAMILIAR WITH THE PLAN SAY IT'S LIKELY TO FOLLOW THE MODEL OF CURRENT POLICIES AT BIG COMPANIES TYPICALLY THEY COVER FULLTIME STUDENTS AS PART OF A FAMILY PLAN UNTIL THE AGE OF 23 OR 24 IF THEY'RE LISTED AS DEPENDENTS FOR TAX PURPOSES CHILDREN WHOSE PARENTS ARE DIVORCED WOULD BE COVERED MUCH AS THEY ARE NOW UNDER ONE PARENT'S PLAN OR THE OTHER USUALLY DEPENDING ON CUSTODY ARRANGEMENTS A PARENT WHO HAS REMARRIED COULD INCLUDE THE CHILDREN IN A FAMILY PLAN WITH THE NEW SPOUSE THERE WOULD BE A SEPARATE PREMIUM CATEGORY FOR SINGLE INDIVIDUALS WITH CHILDREN STILL TO BE RESOLVED IS WHETHER A TWOWAGEEARNER FAMILY COULD BE COVERED BY TWO SEPARATE PLANS THOUGH THERE'S A PROVISION FOR SUCH FAMILIES TO BE ABLE TO CHOOSE A SINGLE PLAN EVEN IF THEY'RE COVERED BY DIFFERENT ALLIANCES IT'S ALSO UNCERTAIN HOW THE SELFEMPLOYED SPOUSE OF SOMEONE IN A CORPORATE ALLIANCE WOULD BE COVERED OR HOW THE PLAN WOULD WORK FOR PEOPLE WITH TWO OR MORE PARTTIME JOBS THERE ARE A NUMBER OF SITUATIONS WHERE WE WOULD NEED SPECIAL RULES SAYS KEVIN ANDERSON A WHITE HOUSE SPOKESMAN ON HEALTH CARE WE'RE LOOKING AT A LOT OF THOSE SCENARIOS 9310200146 931020 INTERNATIONAL LLOYD'S VOTES TODAY ON CORPORATE FUNDS MANY VIEW APPROVAL AS THE ONLY CHANCE TO SURVIVE BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON MEMBERS OF LLOYD'S THE TROUBLED 305YEAROLD INSURANCE MARKET WILL VOTE TODAY ON THE MOST IMPORTANT CHANGE IN ITS HISTORY WHETHER TO PERMIT CORPORATE CAPITAL IN A MARKET THAT UNTIL NOW HAS BEEN RESTRICTED TO INDIVIDUAL INVESTORS KNOWN AS NAMES THOUGH THE PROPOSAL HAS STIRRED OPPOSITION AMONG SOME INDIVIDUAL INVESTORS MANY VIEW IT AS LLOYD'S ONLY CHANCE TO SURVIVE AS A FORCE IN WORLD INSURANCE AFTER MULTIBILLIONPOUND LOSSES FROM A STRING OF NATURAL DISASTERS AND OTHER INSURANCE CATASTROPHES LLOYD'S IS REELING IF THE PLAN IS APPROVED LLOYD'S LONGTERM SUCCESS WILL DEPEND IN PART ON PEOPLE LIKE UNDERWRITER ANDREW BEAZLEY A QUIETSPOKEN 40YEAROLD WHO BEGAN HIS CAREER 24 YEARS AGO AS A CLERK IN A BROKER'S OFFICE UNLIKE MR BEAZLEY WHOSE CAUTIOUS STANCE HAS HELPED HIS NAMES MAKE PROFITS OVER THE PAST FEW YEARS MANY LESSPRUDENT UNDERWRITERS WROTE POLICIES THAT RESULTED IN LOSSES NOW HE ASSERTS LLOYD'S IS GOING TO HAVE TO GROW BY WRITING PROFITABLE BUSINESS AND BEING RUN IN A COSTEFFICIENT MANNER WE DON'T HAVE A RIGHT TO THE BUSINESS WE HAVE GOT TO EARN IT WITHOUT THE INFUSION OF CORPORATE MONEY FROM OUTSIDE INSURANCE COMPANIES INSTITUTIONAL INVESTORS AND STOCK MARKET SPECULATORS LLOYD'S FACES THE THREAT OF STEADY DECLINE THOUSANDS OF NAMES ALREADY HAVE DESERTED THE MARKET SOME OF THEM RUINED BY LOSSES SCORES OF UNDERWRITERS WHO FAILED PROPERLY TO ASSESS RISKS AND THUS WROTE MONEYLOSING POLICIES HAVE GONE OUT OF BUSINESS ONE OF LLOYD'S LARGEST UNDERWRITING AGENCIES MERRETT GROUP RECENTLY ANNOUNCED IT IS SEEKING A CAPITAL INJECTION FROM OUTSIDE INVESTORS FOLLOWING UNDERWRITING LOSSES THAT PROMPTED A PLUNGE IN SUPPORT FROM NAMES AND THEIR AGENTS THE ARRIVAL OF CORPORATE CAPITAL WOULD CHANGE A SYSTEM DATING FROM LLOYD'S BEGINNINGS THREE CENTURIES AGO IN A LONDON COFFEE SHOP TRADITIONALLY LLOYD'S HAS OPERATED AS A MARKET IN WHICH INDIVIDUAL INVESTORS EACH PUT UP THEIR OWN CAPITAL TO BACK POLICIES ACCEPTING UNLIMITED LIABILITY DOWN TO THEIR LAST SHIRT BUTTON FOR POTENTIAL LOSSES FROM CLAIMS THE NEW RULES BY CONTRAST WILL GIVE INVESTORS ACCESS TO LLOYD'S THROUGH INCORPORATED INVESTMENT FUNDS OFFERING LIMITED LIABILITY FOR LOSSES THE RULES CHANGE WON'T BRING JUST MONEY BUT MORE PROFESSIONALISM TO LLOYD'S AS WELL SOME SAY FOR THE FIRST TIME EVER LLOYD'S UNDERWRITERS WOULD BE SUBJECT TO THE SCRUTINY NOT JUST OF AROUND 19000 ACTIVE NAMES AND THEIR AGENTS BUT OF INVESTMENT ANALYSTS MERCHANT BANKERS RATING AGENCIES AND A HOST OF PRIVATE AND CORPORATE INVESTORS FROM OUTSIDE LLOYD'S PART OF THE INFLUENCE OF CORPORATE CAPITAL PREDICTS VAL POWELL CHIEF EXECUTIVE OF THE ASSOCIATION OF LLOYD'S NAMES WILL BE TO FORCE UNDERWRITERS TO IMPROVE PERFORMANCE THROUGH SHAREHOLDER PRESSURE STILL SOME DISSIDENT NAMES HOPE TO SINK THE CORPORATE CAPITAL PLAN IN AN EFFORT TO FORCE LLOYD'S TO COVER PAST LOSSES ARGUING THESE LOSSES WERE THE RESULT OF POOR ADVICE INADEQUATE MARKET SURVEILLANCE AND INEFFICIENT UNDERWRITING THOUSANDS OF NAMES HAVE BANDED TOGETHER INTO 37 ACTION GROUPS THAT ARE SUING OR THREATENING TO SUE THEIR AGENTS THOUGH CORPORATE CAPITAL WOULD HELP LLOYD'S AS A WHOLE THEY FEAR IT WOULDN'T HELP THEM FOR ONE THING MANY NAMES HAVE LOST SO MUCH MONEY THAT THEY HAVE NO CAPITAL LEFT TO INVEST AT LLOYD'S AND THUS WON'T PROFIT FROM AN UPTURN IN THE MARKET OTHERS WORRY THAT CORPORATE CAPITAL COULD SOME DAY DOMINATE THE MARKET SQUEEZING OUT INDIVIDUAL NAMES LLOYD'S OFFICIALS HOWEVER SAY THEY'RE CONFIDENT OF WINNING SUPPORT FOR THE PLAN EVEN SOME OF THE MOST EMBITTERED DISSIDENTS ADMIT THAT THEY EXPECT IT TO BE APPROVED CORPORATE CAPITAL HAS GOT TO COME IF LLOYD'S IS TO CARRY ON SAYS CLIVE FRANCIS A RETIRED FIGHTER PILOT WHO HAS RUN UP PERSONAL LOSSES AT LLOYD'S OF 21 MILLION 31 MILLION ON THE MARKET IN THE PAST THREE YEARS AND IS NOW LEADING AN ACTION GROUP THAT'S THREATENING TO SUE THE CORPORATION OF LLOYD'S FOR ALLEGED FRAUD ASSUMING CORPORATE CAPITAL IS APPROVED FINANCIERS ARE LINING UP TO LAUNCH LLOYD'S INVESTMENT TRUSTS MANY WILL BE LISTED ON THE LONDON STOCK EXCHANGE AND MOST WILL BE OPEN TO PRIVATE INVESTORS IN ONE OF THE BIGGEST TWO HSBC HOLDINGS PLC UNITS INVESTMENT BANK SAMUEL MONTAGU AND BROKERAGE JAMES CAPEL AIM TO RAISE 250 MILLION THROUGH A VEHICLE CALLED LONDON INSURANCE MARKET INVESTMENT TRUST OR LIMIT FROM INSTITUTIONS AND PRIVATE INVESTORS TO BACK POLICIES PLACED WITH MORE THAN 80 DIFFERENT SYNDICATES OR INSURANCE GROUPS RUN BY LLOYD'S UNDERWRITERS ALTOGETHER ABOUT 30 CORPORATE VEHICLES WITH 15 BILLION TO 2 BILLION AT THEIR DISPOSAL COULD BE TARGETING LLOYD'S IN THE NEXT FEW MONTHS EVEN ASSUMING THE PLAN IS APPROVED HOWEVER THERE ARE STILL PLENTY OF PITFALLS AHEAD SOME ANALYSTS FOR EXAMPLE WARN AGAINST FLOODING THE MARKET WITH NEW CAPITAL BECAUSE THEY FEAR UNDERWRITERS WON'T BE ABLE TO FIND SUFFICIENT QUALITY BUSINESS TO PROVIDE SATISFACTORY RETURNS BOTH FOR EXISTING BACKERS AND THE NEW CORPORATE INVESTORS IN LLOYD'S ONE MUST BE VERY CAUTIOUS ABOUT EXPANDING UNCONTROLLABLY WHEN THINGS SEEM TO BE GOING WELL SAYS ANDREW FLEMINGWILLIAMS A DIRECTOR OF LLOYD'S AGENCY RJ KILN & CO IN THE 1980S AN INFLUX OF CAPITAL INTO THE MARKET HELPED TO PUSH PREMIUM RATES DOWN PAVING THE WAY FOR HEAVY LOSSES HE RECALLS WORLDWIDE DEMAND FOR INSURANCE IS SET TO RISE SIGNIFICANTLY MR BEAZLEY PREDICTS IN HIS OWN SPECIALTY AREA THERE'S GROWING DEMAND IN BRITAIN FOR INSURANCE TO PROTECT COMPANY DIRECTORS AGAINST SUITS RELATING TO THE FIRMS ON WHOSE BOARDS THEY SIT BUT VIGILANCE IN THE FACE OF POTENTIAL RISKS WILL BE NEEDED SITTING ON A HIGHBACKED WOODEN BENCH AT HIS TRADING DESK ON THE SECOND GALLERY OF LLOYD'S MULTISTORY TRADING FLOOR HE MOVES RAPIDLY THROUGH PROPOSALS BROUGHT TO HIM BY PINSTRIPESUITED BROKERS A FIRM OF FLORIDA LAWYERS SEEKING AN INCREASE IN THEIR PROFESSIONAL LIABILITY COVER IS TURNED DOWN HE ALREADY HAS PLENTY SUCH RISKS ON HIS BOOKS MR BEAZLEY ALSO REJECTS A US INSURER SEEKING GREATER REINSURANCE COVERAGE BECAUSE HE WANTS THE US INSURER TO KEEP SHARING THE RISKS THEN HE NOTICES SOMETHING HE LIKES A PROPOSAL FOR PROFESSIONAL LIABILITY BUSINESS FROM A US BROKER WHO OVER THE PAST 12 MONTHS HAS LIMITED EXPANSION OF HIS CLIENT PORTFOLIO TO AVOID UNDUE RISKS THIS IS THE SORT OF PEOPLE WE LIKE TO DO BUSINESS WITH HE NOTES HE DOUBLES THE AMOUNT OF INSURANCE HE WILL UNDERWRITE FOR THIS BROKER OVER THE NEXT 12 MONTHS 9310200145 931020 ALEX BROWN INC LEGG MASON REPORT STRONG NET INCOME A WALL STREET JOURNAL NEWS ROUNDUP TWO BALTIMORE SECURITIES COMPANIES ALEX BROWN INC AND LEGG MASON INC REPORTED HEALTHY QUARTERLY EARNINGS INCREASES PARTLY REFLECTING THE RECENT HEAVY TRADING VOLUME ON WALL STREET ALEX BROWN REPORTED A 36 RISE IN NET INCOME FOR ITS THIRD QUARTER ENDED SEPT 24 NET INCOME WAS 152 MILLION OR 95 CENTS A SHARE UP FROM 111 MILLION OR 71 CENTS A SHARE A YEAR EARLIER REVENUE SURGED 33 TO 1397 MILLION FROM 1047 MILLION A YEAR EARLIER AB KRONGARD CHIEF EXECUTIVE OF ALEX BROWN SAID THE THIRDQUARTER RESULTS REFLECT A SOLID PERFORMANCE ACROSS OUR BUSINESS LINES HE NOTED THAT THE FIRM ACHIEVED A 19 PRETAXPROFIT MARGIN FOR THE THIRD QUARTER UP FROM 17 A YEAR EARLIER LEGG MASON SAID NET INCOME FOR ITS FISCAL SECOND QUARTER ENDED SEPT 30 SURGED 65 NET INCOME WAS 114 MILLION OR 94 CENTS A SHARE UP FROM THE YEAREARLIER 68 MILLION OR 60 CENTS A SHARE AS ADJUSTED TO REFLECT A STOCK SPLIT SECONDPERIOD REVENUE ROSE 37 TO 1068 MILLION FROM 777 MILLION A YEAR EARLIER 9310200144 931020 GROUP OFFERS 133 MILLION FOR NEW ENGLAND PATRIOTS HARTFORD CONN A GROUP TRYING TO BRING PROFESSIONAL FOOTBALL HERE MADE A 133 MILLION BID FOR THE NEW ENGLAND PATRIOTS A NATIONAL FOOTBALL LEAGUE TEAM CURRENTLY PLAYING IN FOXBORO MASS OUTSIDE OF BOSTON THE GROUP IS LED BY FRANCIS MURRAY A PHILADELPHIA RESTAURATEUR AND BUSINESSMAN WHO PREVIOUSLY HELD A MINORITY STAKE IN THE PATRIOTS AND WHO IS PART OF A GROUP BIDDING FOR A NEW NFL FRANCHISE IN ST LOUIS JAMES ORTHWEIN OWNER OF THE PATRIOTS IS TRYING TO SELL THE TEAM AND GET AN EXPANSION TEAM IN HIS NATIVE ST LOUIS MR MURRAY SAID THE OFFER IS CONTINGENT ON ST LOUIS WINNING A FRANCHISE THAT WOULD ENABLE HIM TO SELL THAT INTEREST AND BUY THE PATRIOTS IN A CONTROVERSIAL ACTION CONNECTICUT'S LEGISLATURE RECENTLY AUTHORIZED THE SALE OF 252 MILLION IN BONDS TO FINANCE CONSTRUCTION OF A 70000SEAT STADIUM IN HARTFORD WHICH HAS BEEN SEVERELY DEPRESSED DUE TO DOWNTURNS IN THE DEFENSE INDUSTRY REAL ESTATE AND CUTBACKS AT AREA INSURANCE COMPANIES MR MURRAY'S OFFER IS WELL ABOVE THE ESTIMATED 110 MILLION THAT MR ORTHWEIN SPENT TO BUY THE TEAM FROM ELECTRIC RAZOR MAGNATE VICTOR KIAM HOWEVER IT IS BELOW THE 140 MILLION CASH PRICE THAT THE NFL SET FOR THE TWO NEW EXPANSION FRANCHISES IT WILL AWARD NEXT MONTH 9310200143 931020 INTERNATIONAL AKZO NV IS INVESTIGATED BY EC COMMISSION AGAIN BRUSSELS DUTCH SPECIALTY CHEMICALS MAKER AKZO NV IS AGAIN BEING INVESTIGATED BY THE EUROPEAN COMMUNITY COMMISSION FOR ALLEGED ANTICOMPETITIVE BEHAVIOR EC ANTITRUST INVESTIGATORS YESTERDAY SEARCHED AKZO OFFICES ALTHOUGH THE COMMISSION WOULDN'T SAY EXACTLY WHAT WAS SOUGHT AKZO DECLINED TO ELABORATE ON THE OBJECT OF THE SEARCH THIS ISN'T THE FIRST TIME THAT AKZO HAS RUN UP AGAINST EC COMPETITION AUTHORITIES IN 1985 THE COMMISSION FINED AKZO 10 MILLION EUROPEAN CURRENCY UNITS 116 MILLION FOR ABUSING ITS DOMINANT MARKET POSITION BY ATTEMPTING TO DRIVE A SMALL BRITISH COMPETITOR OUT OF BUSINESS IN 1989 AKZO'S OFFICES WERE SEARCHED BY THE EC FOR EVIDENCE IN AN ALLEGED SODAASH CARTEL FINES WERE LEVIED AGAINST SEVERAL OTHER SODAASH PRODUCERS BUT NOT AGAINST AKZO INVESTIGATORS HAD BEEN TRYING TO SEARCH AKZO'S ARNHEM OFFICES FOR TWO WEEKS BUT WERE DENIED ENTRY THE COMMISSION WAS SET TO BEGIN FINING THE COMPANY 1000 ECUS 115760 A DAY BEGINNING YESTERDAY AS LONG AS INVESTIGATORS WEREN'T ALLOWED TO CARRY OUT THEIR SEARCHES BECAUSE THE COMPANY PERMITTED ACCESS THE FINES WEREN'T IMPOSED 9310200142 931020 COMMODITIES OIL PRICES REMAIN IN SLUMP DESPITE DECLINES IN INVENTORIES COMPARED WITH YEARAGO LEVELS BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL ALTHOUGH US OIL PRODUCT INVENTORIES IN RECENT DAYS HAVE BEEN SLIMMER THAN LAST YEAR'S LEVELS AROUND THIS TIME OF YEAR OIL PRICES HAVE REMAINED IN A SLUMP CRUDE OIL PRICES FOR NOVEMBER DELIVERY YESTERDAY FELL SEVEN CENTS A BARREL TO 1806 WHILE THE PRICE OF GASOLINE FOR DELIVERY DURING THE SAME MONTH DECLINED 027 CENT TO 5103 CENTS A GALLONCES INCREASED EDGING HIGHER BY 012 CENT TO 54 CENTS A GALLON DISTILLATE STOCKS AS OF LAST WEEK REPRESENTED 38 DAYS OF SUPPLY THREE DAYS LESS THAN THE AMOUNT STORED AWAY LAST YEAR AT THIS TIME GASOLINE INVENTORIES WERE PEGGED AT 28 DAYS OF SUPPLY TWO DAYS LESS THAN YEARAGO LEVELS CRUDE SUPPLIES AT 248 DAYS OF OIL WERE ONLY SLIGHTLY HIGHER THAN LAST YEAR THOSE NUMBERS SHOULD INDICATE A BETTER MARKET THAN WE'RE SEEING SAID ANDREW LEBOW ANALYST FOR ED&F MAN INTERNATIONAL FUTURES INC IN NEW YORK INDEED STATISTICS RELEASED LATE YESTERDAY BY THE AMERICAN PETROLEUM INSTITUTE MAY GIVE PRICES A BOOST CRUDE OIL STOCKS LAST WEEK DECREASED BY 371 MILLION BARRELS TO 32713 MILLION BARRELS GASOLINE INVENTORIES SLIPPED BY 715000 BARRELS TO 20967 MILLION BARRELS TRADERS HAD BEEN EXPECTING STOCKS FOR THOSE TWO COMMODITIES TO INCREASE RATHER THAN DECREASE HEATING OIL OR DISTILLATE INVENTORIES HOWEVER GREW BY 377 MILLION BARRELS TO 13215 MILLION BARRELS TRADERS HAD BEEN EXPECTING THOSE STOCKS TO GROW BUT NOT BY AS MUCH AS THEY DID STILL DISTILLATE FUEL STOCKS AT 13215 MILLION BARRELS REMAIN ONLY SLIGHTLY AHEAD OF LAST YEAR'S LEVEL OF 13151 MILLION BARRELS AND RECENT DATA FROM THE ENERGY DEPARTMENT'S ENERGY INFORMATION AGENCY FOR THE YEAR THUS FAR SHOWS GASOLINE CONSUMPTION UP 24 AND HEATING OIL USE 3 HIGHER BUT MARKET PARTICIPANTS REMAIN SKITTISH ABOUT OWNING HUGE QUANTITIES OF OIL LARGELY BECAUSE THE GLOBAL PERSPECTIVE REGARDING CRUDEOIL SUPPLIES APPEARS MORE BEARISH OUTPUT FROM THE NORTH SEA OILFIELDS WILL CONTINUE TO GROW UNTIL AT LEAST THE END OF THE YEAR AND WITH NUMEROUS REFINERIES IN EUROPE CLOSED DOWN FOR MAINTENANCE DEMAND FOR CRUDE FROM THAT SECTOR OF THE MARKET HAS BEEN STIFLED IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD AND OTHER PRECIOUS METALS FUTURES PRICES EDGED UP IN MOSTLY TECHNICAL TRADING DEALERS SAID GOLD PRICES RALLIED FROM AN EARLY SESSION SELLOFF THAT BROUGHT PRICES DOWN TO LEVELS AROUND 365 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY EDGED UP 70 CENTS TO SETTLE AT 37030 AN OUNCE DEALERS SAID THE MARKET WILL BE POISED TO SEE WHETHER THE YELLOW METAL NOW TRADES WITHIN A 370375 RANGE SILVER FOR DECEMBER DELIVERY ROSE 05 CENT TO SETTLE AT 4430 AN OUNCE ON THE COMEX TRADERS NOTED THAT SILVER'S MARGINAL RISE CAME ON A DAY WHEN COPPER FUTURES SETTLED AT A LIFEOFCONTRACT LOW DOWN 070 CENT TO 7315 CENTS A POUND FOR DECEMBER DELIVERY THE RECENT SHARP SLIDE IN COPPER FUTURES PRICES LARGELY REFLECTS WEAK INDUSTRIAL DEMAND WORLDWIDE TRADERS SAY THAT WEAKNESS COULD ALSO ERODE SILVER FUTURES PRICES WHICH TO A LARGE DEGREE ARE ALSO SENSITIVE TO BROADBASED INDUSTRIAL DEMAND ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR JANUARY DELIVERY ADDED 250 TO SETTLE AT 37540 AN OUNCE PALLADIUM FOR DECEMBER DELIVERY GAINED 75 CENTS TO FINISH AT 13350 AN OUNCE GRAINS & SOYBEANS PRICES OF CORN FUTURES CONTRACTS ROSE AMID FORECASTS FOR COLD WET WEATHER TO DELAY THE MIDWEST HARVEST WHICH IS ALREADY FAR BEHIND SCHEDULE RECORD SUMMER RAIN SLOWED THE GROWTH RATE OF CROPS IN IOWA MINNESOTA AND MISSOURI AMONG OTHER STATES CORN FARMERS IN IOWA HAVE HARVESTED ABOUT 12 OF THEIR FIELDS COMPARED WITH THE 53 OF THE CROP NORMALLY IN STORAGE BY NOW THE LONGER THE CROP IS IN THE FIELD THE MORE VULNERABLE IT IS TO WIND DAMAGE PARTICULARLY THIS YEAR MANY PLANTS HAVE UNUSUALLY SHALLOW ROOTS BECAUSE THE EXCESSIVE SUMMER RAIN MADE DEEPER ROOTS UNNECESSARY IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR DECEMBER DELIVERY ROSE ONE CENT A BUSHEL TO SETTLE AT 254 A BUSHEL THE WHEAT CONTRACT FOR DECEMBER DELIVERY ROSE 225 CENTS A BUSHEL TO SETTLE AT 33025 A BUSHEL AMID SPECULATION THAT THE CLINTON ADMINISTRATION IS MULLING SOME SORT OF CREDIT GUARANTEE PACKAGE FOR CHINESE PURCHASES OF US GRAIN THE AGRICULTURE DEPARTMENT IS EXPECTED TO MAKE AN ANNOUNCEMENT CONCERNING US GRAIN EXPORTS TO CHINA AS EARLY AS TODAY 9310200141 931020 INTERNATIONAL US INVESTORS NEGOTIATING TO BUY A PROMINENT LLOYD'S UNDERWRITER BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL LLOYD'S OF LONDON WHICH IS POISED TO OPEN ITS DOORS TO OUTSIDE INVESTORS MAY BE GETTING MORE THAN IT BARGAINED FOR A GROUP OF US FINANCIAL GIANTS INCLUDING MARSH & MCLENNAN COS JP MORGAN & CO AND POSSIBLY TRAVELERS CORP IS NEGOTIATING TO BUY THE UNDERWRITING OPERATIONS OF MERRETT GROUP ONE OF THE LARGEST UNDERWRITERS AT THE TROUBLED INSURANCE EXCHANGE THE ACQUISITION COULD COST THE GROUP AS MUCH AS 350 MILLION ALTHOUGH LLOYD'S NEEDS THE CAPITAL IT IS RELUCTANT TO LET OUTSIDE INVESTORS ACQUIRE MORE THAN 50 OF ONE OF ITS UNDERWRITING SYNDICATES THAT LIMIT WHICH IS TO BE VOTED ON TODAY IS INTENDED TO PREVENT OUTSIDERS FROM DOMINATING LLOYD'S WHICH HAS BEEN RUN BY INDIVIDUAL INVESTORS OR NAMES FOR MORE THAN 300 YEARS LLOYD'S HOWEVER MAY NOT HAVE COMPLETE CONTROL OVER THE MATTER THE US GROUP IS SEEKING THE EXCHANGE'S BLESSING TO BUY CONTROL OF MERRETT BUT IF THE EXCHANGE REJECTS THE PLAN THE GROUP IS THREATENING TO SIMPLY BUY MERRETT AND PULL IT OUT OF LLOYD'S LITERALLY REMOVING MERRETT'S BUSINESS FROM THE AVANT GARDE LLOYD'S BUILDING AT ONE LIME ST AND LOCATING TO OFFICES ACROSS THE STREET THE US INVESTORS SAY THEY HAVE AUTHORITY TO DROP OUT OF LLOYD'S WITHOUT LOSING ANY OF MERRETT'S BUSINESS ALTHOUGH THEY WOULD LOSE THE CACHET OF BEING ASSOCIATED WITH THE EXCHANGE IF LLOYD'S DOESN'T APPROVE THE DEAL THE INVESTORS WILL DO IT ANYWAY SAID ROBERT CLEMENTS PRESIDENT OF MARSH & MCLENNAN THE LOSS OF MERRETT WOULD CERTAINLY BE A BLOW TO LLOYD'S ALTHOUGH ANALYSTS DISAGREE ON HOW MUCH MERRETT WRITES 700 MILLION OF PREMIUMS A YEAR OTHER SYNDICATES THAT JOIN IN INSURANCE CONTRACTS LED BY MERRETT COLLECT AN ADDITIONAL 1 BILLION TO 2 BILLION IN PREMIUMS A YEAR LLOYD'S WRITES A TOTAL OF ABOUT 10 BILLION OF PREMIUMS THE PROBLEM FOR LLOYD'S IS THAT IF IT ALLOWS CORPORATE INVESTORS TO CONTROL MORE THAN 50 OF AN INDIVIDUAL SYNDICATE'S BUSINESS IT SETS A PRECEDENT FOR OTHER OUTSIDE INVESTORS TO COME IN AND DO THE SAME THIS IS CERTAINLY GOING TO BRING THIS CORPORATE MEMBERSHIP ISSUE TO A HEAD SAID KIRK ROESER WITH GILL & ROESER A NEW YORK REINSURANCE CONSULTING FIRM THIS IS A REAL FISHORCUTBAIT ISSUE FOR LLOYD'S LLOYD'S WILL REVIEW THE MERRETT TRANSACTION IN THE NEXT FEW WEEKS IN ADDITION TO THE ISSUE OF CONTROL THE NAMES ARE CONCERNED THAT CORPORATE INVESTORS ARE BEING ALLOWED TO GET INTO LLOYD'S TOO CHEAPLY AND PROFIT FROM THE LLOYD'S BRAND NAME THEY DIDN'T CREATE MR ROESER SAID MARSH & MCLENNAN AN INSURANCE BROKER AND JP MORGAN A COMMERCIAL BANK ARE ORGANIZING THE PLAN TO BUY MERRETT THE MAJORITY PARTNER IN THE VENTURE WOULD BE A MAJOR FINANCIALSERVICES GROUP ACCORDING TO A NEWS RELEASE ISSUED BY MERRETT PEOPLE CLOSE TO THE SITUATION SAY THAT ENTITY IS LIKELY TO BE TRAVELERS ALTHOUGH THEY ADD THAT TRAVELERS A HARTFORD CONN INSURER HAS YET TO COMMIT TO THE PARTNERSHIP TRAVELERS DECLINED TO COMMENT 9310200140 931020 WHO'S NEWS UNION CARBIDE CORP UNION CARBIDE CORP DANBURY CONN THIS CHEMICALS AND PLASTICS CONCERN SAID JOSEPH S BYCK 51 YEARS OLD WILL SHARE THE ADDED RESPONSIBILITY OF INVESTOR RELATIONS WITH O JULES ROMARY 62 UNTIL MR ROMARY'S RETIREMENT AT YEAR END DR BYCK IS VICE PRESIDENT STRATEGIC PLANNING AND PUBLIC AFFAIRS 9310200139 931020 WHO'S NEWS GENVEC INC GENVEC INC ROCKVILLE MD THOMAS W D'ALONZO 49 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS BIOTECHNOLOGY COMPANY A NEW POST MR D'ALONZO WAS FORMERLY PRESIDENT OF THE US SUBSIDIARY OF LONDONBASED GLAXO HOLDINGS PLC 9310200138 931020 AUTOS MERCEDESBENZ TRIES TO COMPETE ON VALUE BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL THE DRIVE STYLE AND FEEL OF THE SMALL CCLASS SEDANS MAKING THEIR DEBUT IN THE US NEXT MONTH ARE SUPPOSED TO PROVIDE THE FIRST PHYSICAL EVIDENCE OF MERCEDESBENZ AG'S REBIRTH AS A MAKER OF LUXURY AUTOMOBILES BUT THE PROOF IS IN THE PRICING BASED FROM 29900 TO 34900 THE FOURCYLINDER C220 AND THE SIXCYLINDER C280 REPRESENT THE GERMAN COMPANY'S BOLDEST ATTEMPT AT OFFERING CARS THAT ARE WITHIN REACH OF ENTRYLEVEL LUXURYCAR BUYERS POTENTIAL CUSTOMERS IT HAS BEEN LOSING FOR YEARS TO LOWERPRICED MODELS FROM JAPANESE AUTO MAKERS LIKE TOYOTA MOTOR CORP'S LEXUS DIVISION AND NISSAN MOTOR CO'S INFINITI DIVISION AND GERMAN ARCHRIVAL BAYERISCHE MOTOREN WERKE AG IN FACT THE CCLASS SEDANS WILL SELL FOR ABOUT THE SAME AS THE CARS THEY REPLACE THE SMALLER BABY BENZ 190S BUT OFFER MORE ROOM AND BETTER EQUIPMENT IT'S A SELLING POINT THE GERMAN AUTO MAKER HAS BEEN TOUTING AGGRESSIVELY TO APPEAL TO A LUXURYCAR MARKET THAT HAS BECOME JUST AS VALUEORIENTED AS THE MARKET FOR BUYERS OF LOWPRICE CHEVROLET CAVALIERS THE CUSTOMER IS VERY MUCH ON THE MOVE AND WE ARE TRYING VERY MUCH TO BE AHEAD OF HIM ACKNOWLEDGES HELMET WERNER MERCEDESBENZ'S CHAIRMAN IF THE CCLASS CARS SYMBOLIZE A NEW DIRECTION FOR THE AUTO MAKER THEN MR WERNER WHO BECAME CHAIRMAN IN MAY IS ITS LEADER HE HAS SPENT MUCH OF THE LAST MONTH INFORMING THE WORLD THAT MERCEDESBENZ WOULD AGGRESSIVELY PURSUE MARKETS OUTSIDE ITS TYPICAL UPSCALE NICHES AT THE FRANKFURT AUTO SHOW MR WERNER'S STAR ATTRACTION WAS A TINY THREECYLINDER CITY CAR MODEL THAT HE SAID THE AUTO MAKER ENVISIONS BUILDING FOR THE EUROPEAN MARKET IN TUSCALOOSA ALA MR WERNER SAID THE CITY WOULD BE THE SITE FOR THE AUTO MAKER'S FIRST US ASSEMBLY PLANT WHICH IN 1996 WOULD BEGIN PRODUCING THE COMPANY'S FIRST SPORTS UTILITY VEHICLE MR WERNER KNOWS THEY HAVE TO OFFER SOMETHING AT A DOWNTOEARTH PRICING LEVEL WHICH PERHAPS WASN'T ALWAYS THE POLICY IN THE PAST OBSERVES JOHN LAWSON AN INDUSTRY ANALYST WITH DRI/MCGRAWHILL IN LONDON THE CCLASS CARS MARK A DEPARTURE FROM THE ULTRALUXURIOUS FULLSIZED SCLASS SEDANS MERCEDESBENZ INTRODUCED TWO YEARS AGO INTO THE TEETH OF A RECESSION PRICED FROM 69900 TO 119900 THE CARS FLOPPED MOST WEALTHY PEOPLE DIDN'T GET WEALTHY BY BEING STUPID SAYS CHRISTOPHER CEDERGREN SENIOR VICE PRESIDENT OF AUTOPACIFIC INC AN AUTOMOTIVE CONSULTING GROUP THEY DON'T MIND SPENDING THE MONEY BUT THEY LIKE TO KNOW THEY ARE GETTING THEIR VALUE FOR THEIR DOLLAR UNDER MR WERNER'S LEADERSHIP MERCEDESBENZ APPEARS EAGER TO SHED ITS OLD AND ARROGANT WAYS INDEED MR WERNER NOTES THAT HIS PARENT COMPANY DAIMLERBENZ AG HAS ADOPTED ENGLISH AS ITS OFFICIAL SECOND LANGUAGE IT ALSO HAS TRIED TO CUT PRODUCTION COSTS FOR EXAMPLE CAR SEATS THAT WERE ONCE HANDSEWN ON PRODUCTION LINES ARE BEING HANDLED BY OUTSIDE SUPPLIERS YOUNGER STAFFERS WITH US TRAINING HAVE A GREATER SAY THAN BEFORE IN THE CARS' DESIGN MR WERNER SAYS TAKE THE CUP HOLDER AFTER YEARS OF REGARDING IT AS AN AMERICAN FRIVOLITY MERCEDESBENZ HAS EQUIPPED THE CCLASS SEDANS WITH A PRACTICAL CUP HOLDER REPLACING AN INOPERABLE AFTERTHOUGHT TUCKED AWAY IN A GLOVE BOX THE CCLASS CARS WITH THEIR CUP HOLDER ADDED ROOM DUAL AIRBAGS AND EXTRA STANDARD EQUIPMENT SUCH AS ANTILOCK BRAKES AND CRUISE CONTROL ARE SUPPOSED TO REFLECT MERCEDESBENZ'S WILLINGNESS TO STOP DICTATING TO CUSTOMERS WHAT THEY SHOULD EXPECT FROM OR TO PAY FOR A GERMAN LUXURY CAR MERCEDESBENZ WANTS TO PROVE IT CAN PLAY THE PRICETOVALUE GAME AS WELL AS ANY OTHER AUTO MAKER AND IF MERCEDESBENZ CAN'T MEET THAT POINT THEN THERE REALLY IS NO FUTURE FOR MERCEDESBENZ SAYS PETER SCHMIDT OF AUTO INDUSTRY DATA A LONDONBASED MARKETRESEARCH FIRM SINCE 1986 MERCEDESBENZ'S US SALES HAVE DECLINED STEADILY FROM A PEAK OF NEARLY 100000 CARS TO A LOW OF ABOUT 59000 IN 1991 BEFORE SALES RECOVERED SLIGHTLY LAST YEAR THIS YEAR SALES THROUGH SEPTEMBER WERE OFF 76 FROM 1992'S LACKLUSTER 47645 AS DAIMLERBENZ RECORDED A FIRSTHALF LOSS OF 949 MILLION MARKS 5795 MILLION ITS SHARE OF THE GERMAN MARKET ITS LARGEST HAS FALLEN FROM 116 IN 1985 TO 64 LAST YEAR MR SCHMIDT NOTES AS A RESULT MERCEDESBENZ HAS LAID OFF THOUSANDS IN A BID TO STREAMLINE STILL UNTIL THE PRICING OF THE CCLASS SEDANS WAS REVEALED THIS FALL MANY INDUSTRY ANALYSTS WERE UNSURE WHETHER THE COMPANY WAS COMMITTED TO TAKING ANY DRAMATIC ACTION AFTER ALL MERCEDESBENZ HAD SPENT YEARS IGNORING THE THREAT POSED BY THE JAPANESE JUST ASK BOB O'BRIEN A ST LOUIS DEALER OF MERCEDESBENZ CARS WHO HAS SPENT THE PAST FIVE YEARS WATCHING PROSPECTS DRIVE BY HIS DEALERSHIP IN LEXUS AND INFINITI SEDANS THE JAPANESE HAVE BEEN EATING OUR LUNCH MR O'BRIEN SAYS AND ESSENTIALLY WHAT IS HAPPENING NOW IS THAT WE'RE BRIDGING THAT GAP AT 29900 THE ENTRYLEVEL CCLASS WILL SELL FOR 700 LESS THAN THE ES300 LEXUS' ENTRYLEVEL SEDAN THAT'S A STARK CONTRAST FROM FIVE YEARS AGO WHEN THE 190'S BASE PRICE WAS 11450 MORE THAN THE CHEAPEST LEXUS A 21050 ES250 FOR MERCEDES THE CCLASS CARS REALLY MARK THE FIRST MAJOR PRODUCT LAUNCH WITH AN IMAGE AND PRICE THAT WILL STICK THROUGH THE 90S SAYS SUSAN G JACOBS AN AUTOINDUSTRY CONSULTANT WITH JACOBS & ASSOCIATES IN RUTHERFORD NJ THEY ARE RECOGNIZING THAT IT'S OK TO BE A LUXURY MARQUE AND TO BE A GOOD VALUE ANALYSTS HAVE BEEN MOST IMPRESSED BY THE AUTO MAKER'S DECISION TO CUT PRICES ON SOME ECLASS SEDANS ITS HIGHVOLUME SEDAN LINE AND MOST DIRECT COMPETITOR TO THE POPULAR LEXUS LS400 AND INFINITI Q45 THE BASE PRICE OF THE 1994 MODEL E420 FOR EXAMPLE WAS TRIMMED 94 LAST MONTH TO 51000 THE V8 SEDAN WITH AN UPDATED EXTERIOR DESIGN COMES STANDARD WITH AN ELECTRIC SUNROOF BUT IS 700 LESS THAN THE LEXUS LS400 WHICH FIVE YEARS AGO BECAUSE OF A MUCH WEAKER YEN MADE ITS DEBUT AT A HIGHLY COMPETITIVE 35000 INDUSTRY ANALYSTS HOWEVER SAY IT WILL BE SEVERAL YEARS BEFORE THEY CAN SAY WHETHER MR WERNER AND HIS CREW OF YOUNG MAVERICKS HAVE MADE SIGNIFICANT GAINS IN TRANSFORMING THIS AUTO MAKER INTO A LEAN MANUFACTURER A MUST IF THE COMPANY HOPES TO SUSTAIN ITS VALUEPRICING POLICIES FOR ANY MEANINGFUL PERIOD UNTIL THEN IT IS EASY TO SAY THAT MERCEDESBENZ HAS AT LEAST AWAKENED TO THE CHALLENGES SAYS MR SCHMIDT EVEN THOUGH THINGS STILL LOOK GRIM IT LOOKS LIKE MERCEDESBENZ IS VERY MUCH ESCAPING THIS VERY DANGEROUS SLIPPERY SLIDE 9310200136 931020 TECHNOLOGY U S WEST IS SAID TO BE IN TALKS WITH CABLEVISION BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL U S WEST INC A REGIONAL BELL OPERATING COMPANY IS HOLDING TALKS ABOUT ACQUIRING ALL OR PART OF CABLEVISION SYSTEMS CORP A LONG ISLAND NY CABLETV COMPANY ACCORDING TO TWO PEOPLE ON WALL STREET ANY SUCH ACQUISITION BY U S WEST WOULD MOST LIKELY BE MADE IN TANDEM WITH TIME WARNER INC UNDER TERMS OF U S WEST'S INVESTMENT EARLIER THIS YEAR OF 25 BILLION FOR A 25 STAKE IN TIME WARNER'S ENTERTAINMENT BUSINESS CABLEVISION SYSTEMS HAS HELD OFFANDON ACQUISITION TALKS DURING THE PAST YEAR WITH OTHER REGIONAL BELLS INCLUDING BELL ATLANTIC CORP AND SOUTHWESTERN BELL CORP ACCORDING TO THE WALL STREET INVESTMENT BANKERS BUT THE TALKS HAVE ASSUMED GREATER SIGNIFICANCE IN THE WAKE OF BELL ATLANTIC'S ANNOUNCED PLAN TO ACQUIRE TELECOMMUNICATIONS INC THE LARGEST US CABLE OPERATOR IN A STOCK DEAL THAT COULD TOP 20 BILLION THAT PROPOSED DEAL MAY GIVE OTHER TELEPHONE CONCERNS AN INCENTIVE TO PAY HIGHER PRICES FOR CABLE PROPERTIES CABLEVISION HAS A CURRENT MARKET VALUE OF ABOUT 14 BILLION SO THE COST OF AN OUTRIGHT ACQUISITION COULD TOP 18 BILLION ASSUMING AN ACQUIRER PAID A 30 PREMIUM OVER THE MARKET PRICE BUT ITS CLASS A SHARES FELL 275 TO 6125 IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE YESTERDAY AS INVESTOR EUPHORIA ABOUT CABLE VALUES IN THE WAKE OF THE BELL ATLANTICTCI DEAL COOLED IN WOODBURY NY A CABLEVISION SPOKESMAN DECLINED TO COMMENT SOME ANALYSTS SAY THE COMBINATION OF U S WEST AND TIME WARNER WITH CABLEVISION MAKES STRATEGIC SENSE BECAUSE TIME WARNER HAS A CABLE SYSTEM IN MANHATTAN THAT WOULD FIT WITH CABLEVISION'S SYSTEMS ON NEARBY LONG ISLAND EVERYBODY'S LOOKING FOR A DEAL AND THAT'S AN OBVIOUS DEAL IT'S A NATURAL FIT FOR TIME WARNER SAID ONE BANKER HOWEVER INVESTMENT BANKERS ARE CAUTIOUS IN ASSESSING THE WILLINGNESS OF CHARLES DOLAN CABLEVISION CHAIRMAN TO MAKE A DEAL PARTICULARLY SINCE HE IS UNDERSTOOD TO BE CONCERNED ABOUT THE ROLE THAT HIS CHILDREN MIGHT PLAY IN THE COMPANY'S FUTURE WITH MORE THAN TWO MILLION SUBSCRIBERS IN 19 STATES CABLEVISION IS ONE OF THE NATION'S FIVE LARGEST CABLE OPERATORS AND ACCORDING TO GRUNTAL & CO HAS THE INDUSTRY'S HIGHEST REVENUE AND CASH FLOW PER SUBSCRIBER MANY OF ITS CABLE OPERATIONS ARE CONCENTRATED IN METROPOLITAN AREAS INCLUDING CHICAGO BOSTON AND NEW YORK A CLUSTERING STRATEGY THAT TIME WARNER ALSO HAS AGGRESSIVELY PURSUED INDEED CABLEVISION HAS 135000 CUSTOMERS IN NEW YORK WHERE TIME WARNER HAS ABOUT ONE MILLION SUBSCRIBERS IN LONG ISLAND ALONE CABLEVISION OPERATES THE NATION'S LARGEST SINGLE SYSTEM SERVING 600000 CUSTOMERS CABLEVISION HAS BEEN A MAJOR FORCE IN DEVELOPING CABLE PROGRAMMING ALONG WITH GENERAL ELECTRIC CO'S NBC IT OWNS RAINBOW PROGRAMMING WHICH HAS STAKES IN AMERICAN MOVIE CLASSICS BRAVO COURTROOM TELEVISION AND SPORTS CHANNELS HOWEVER IT IS CONSIDERING A PLAN TO SPIN OFF RAINBOW TO SHAREHOLDERS MR DOLAN ONE OF THE INDUSTRY'S PIONEERS HAS TIES TO TIME WARNER OR ITS PREDECESSORS TIME INC AND WARNER COMMUNICATIONS INC THAT STRETCH TO THE EARLY 1960S IN 1961 HE ESTABLISHED THE COMPANY THAT IS NOW MANHATTAN CABLE THE NATION'S FIRST URBAN SYSTEM AND HE LATER SET UP HOME BOX OFFICE THE FIRST PREMIUM PAYTELEVISION SERVICE TIME INC SUBSEQUENTLY ACQUIRED BOTH OPERATIONS AS OF JUNE CABLEVISION HAD LONGTERM DEBT OF 21 BILLION IT POSTED OPERATING PROFIT OF 79 MILLION IN 1992 ON REVENUE OF 573 MILLION ITS CASH FLOW TOTALED ALMOST 248 MILLION 9310200135 931020 WHO'S NEWS PRESSTEK'S CHIEF RESIGNS HUDSON NH PRESSTEK INC SAID JAMES L BAST RESIGNED AS PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THE PRINTING CONCERN EFFECTIVE IMMEDIATELY CHAIRMAN ROBERT HOWARD SAID EARLY RECOGNITION OF DIFFERENCES IN MANAGEMENT STYLES LED TO A MUTUAL AGREEMENT WITH MR BAST FOR HIM TO STEP ASIDE AT THIS TIME A SUCCESSOR WASN'T NAMED MR BAST COULDN'T BE REACHED TO COMMENT 9310200134 931020 TUESDAY'S MARKETS STOCKS SLIDE WHILE BONDS RISE SLIGHTLY NASDAQ INDEX DROPS 181 AS PROFITTAKERS SELL HIGHFLYING ISSUES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL PROFITTAKERS PUSHED STOCK PRICES LOWER WITH THE RECENTLY HIGHFLYING NASDAQ COMPOSITE INDEX SUFFERING THE BRUNT OF THE SELLOFF BOND PRICES EDGED HIGHER AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE SANK 699 POINTS TO 363532 AND STANDARD & POOR'S 500STOCK INDEX FELL 224 TO 46621 THE NASDAQ COMPOSITE INDEX TUMBLED 1420 OR 181 TO 76871 THE INDUSTRIAL AVERAGE SURGED IN EARLY TRADING PUSHING BRIEFLY ABOVE ITS ALLTIME HIGH OF 365209 BEFORE PROFITTAKING ERASED THE GAINS MANY ANALYSTS CONTEND THAT THE MARKET IS BECOMING INCREASINGLY TREACHEROUS WE'RE GETTING CLOSE TO THE POINT WHERE THE MARKET IS IN DIRE NEED OF A CORRECTION SAID LARRY RICE CHIEF MARKET STRATEGIST AT JOSEPHTHAL LYON & ROSS I'M VERY CAUTIOUS IN THE NEAR TERM SOME ANALYSTS BELIEVE THE NASDAQ MARKET WHICH HAS SOARED TO RECORD LEVELS IN RECENT WEEKS HAS ALREADY EXPERIENCED THE BULK OF ITS CORRECTION DURING THE PAST TWO DAYS THE NASDAQ HAS SHED 24 THE NASDAQ MARKET TENDS TO SHAKE OUT VERY QUICKLY SAID MARY FARRELL STOCKMARKET STRATEGIST AT PAINEWEBBER IT WON'T BE LONG BEFORE THE MARKET'S BACK ON TRACK AND MOVING FORWARD MS FARRELL NOTED THAT THE STOCKS SUFFERING THE STEEPEST DECLINES WERE AMONG THOSE WITH THE HIGHEST RATIOS OF PRICES TO PERSHARE EARNINGS SUCH AS HIGH TECHNOLOGY AND BIOTECHNOLOGY SHE ADDED THAT OVERALL SMALL STOCKS REMAIN UNDERVALUED RELATIVE TO LARGE STOCKS MOREOVER EARNINGS FOR THE SMALLER COMPANIES ARE EXPECTED TO SHOW CONTINUED STRENGTH WHICH WILL HELP PUT THE MARKET BACK ON A LEVEL FOOTING MS FARRELL SAID I WOULDN'T READ TOO MUCH INTO THIS DECLINE SHE SAID AS THIRDQUARTER EARNINGS COME IN WE'LL SEE MORE RATIONALITY REIGNING IN THE MARKETPLACE THE BOND MARKET ALSO HAD A VOLATILE DAY PRICES SANK EARLY AFTER THE COMMERCE DEPARTMENT REPORTED THAT HOUSING STARTS CLIMBED A STRONGERTHANEXPECTED 28 IN SEPTEMBER THE 30YEAR BOND RECOVERED LATER IN THE DAY TO FINISH MODESTLY HIGHER WHAT'S REALLY DRIVING THE BOND MARKET IS CASH FLOW FROM YIELDHUNGRY INVESTORS SAID PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES WE'RE HAVING MAJOR CERTIFICATEOFDEPOSIT EXPIRATIONS WHICH SPIKE BOND PRICES UP AND HELP MODERATE THE DECLINES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 035 TO 11321 IN MAJOR MARKET ACTION STOCK PRICES SLID VOLUME TOTALED 2963 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1228 ISSUES FELL AND 774 ROSE BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 1/8 POINT OR MORE THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 584 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16409 MARKS AND 10720 YEN COMPARED WITH 16390 MARKS AND 10740 YEN MONDAY 9310200133 931020 TECHNOLOGY DIGITAL WILL PROVIDE COMPUTER SYSTEMS FOR U S WEST INC'S INTERACTIVETV TRIAL BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL DIGITAL EQUIPMENT CORP SAID IT WILL PROVIDE COMPUTER SYSTEMS TO PIPE VIDEO TO THOUSANDS OF HOMES SIMULTANEOUSLY IN AN INTERACTIVETELEVISION TRIAL PROPOSED BY U S WEST INC THE AGREEMENT MAKES DIGITAL A SURPRISE CONTENDER IN THE EMERGING MARKET FOR VIDEO SERVERS WHICH STORE PROGRAMS IN DIGITAL FORMAT AND TRANSMIT THEM OVER CABLE OR PHONE LINES ON DEMAND IT'S THE PLUMBING BEHIND INTERACTIVE TELEVISION A MARKET THAT'S HEATING UP AS MERGERS AND ALLIANCES BETWEEN CABLE AND PHONE COMPANIES FUEL FUTURE DEMAND DIGITAL WAS CHOSEN BY U S WEST ENGLEWOOD COLO AND WILL WORK WITH 3DO CO IN THE TRIAL SCHEDULED TO BEGIN IN OMAHA NEB EARLY IN 1994 IF IT GETS FEDERAL COMMUNICATIONS COMMISSION APPROVAL THIS IS AN ENTIRELY NEW MARKET SAID PAUL CALLAHAN OF FORRESTER RESEARCH INC CAMBRIDGE MASS THERE ARE LOTS OF LITTLE COMPANIES DOING INNOVATIVE WORK ON A SMALLER SCALE BUT DIGITAL HAS SUDDENLY ENTERED THE SCENE WITH AN INDUSTRIALSTRENGTH APPROACH OTHER COMPUTER MAKERS SCRAMBLING FOR A PIECE OF THE MARKET INCLUDE INTERNATIONAL BUSINESS MACHINES CORP SILICON GRAPHICS INC AMERICAN TELEPHONE & TELEGRAPH CO AND NCUBE CORP A U S WEST SPOKESWOMAN WOULDN'T DISCLOSE THE SIZE OF DIGITAL'S CONTRACT OR SAY WHAT COMPANIES LOST OUT OTHERS ALREADY IN THE U S WEST TRIAL ARE AT&T DSC COMMUNICATIONS CORP SCIENTIFICATLANTA INC AND ORACLE CORP ANALYSTS SAY DIGITAL IS ALSO A CONTENDER FOR SYSTEMS PLANNED BY THREE OTHER US PHONE COMPANIES AND TWO FOREIGN FIRMS CHARLES F CHRIST A DIGITAL VICE PRESIDENT ASSERTED THAT THE COMPANY HAS AN EDGE BECAUSE OF ITS DESIGN'S HIERARCHICAL APPROACH TO THE VAST DATASTORAGE NEEDS OF A VIDEO SERVER AND BECAUSE THE SYSTEM USES A DECENTRALIZED OR CLIENTSERVER ARCHITECTURE HE ALSO SAID THAT DIGITAL'S APPROACH ASSURES LOWER COST THAN SYSTEMS BASED ON MAINFRAME COMPUTERS AND THAT ITS NEW ALPHA SYSTEMS ARE ESPECIALLY WELL SUITED FOR THE RAPID COMPRESSION AND DECOMPRESSION OF DIGITAL VIDEO NEEDED TO SQUEEZE MOVIES THROUGH CABLE OR TELEPHONE LINES A U S WEST SPOKESWOMAN SAID THAT IF THE TRIAL IS APPROVED THE COMPANY PLANS TO BEGIN IMMEDIATELY BUILDING HIGHCAPACITY WIRING TO SOME 10000 HOMES IN THE OMAHA AREA LATER WITH FURTHER FCC APPROVALS WE INTEND TO DEPLOY THESE INTERACTIVE SERVICES ACROSS OUR ENTIRE 14STATE OPERATING REGION THE SPOKESWOMAN SAID SHE SAID DIGITAL BASED IN MAYNARD MASS WOULD HAVE TO COMPETE AGAIN FOR FUTURE PHASES BUT ADDED WE OBVIOUSLY FEEL THEIR SYSTEM BEST FITS OUR NEEDS FORRESTER'S MR CALLAHAN SAID THAT AS THE VIDEOSERVER MARKET DEVELOPS COST TO THE CONSUMER WILL BE THE MOST IMPORTANT FACTOR IT'S GOING TO BE A REAL HORSE RACE TO GET THIS TECHNOLOGY CHEAP ENOUGH AND BULLETPROOF ENOUGH TO WORK IN THE PHONE NETWORK 9310200132 931020 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE JAPANESE GOVERNMENT FOR THE FIRST TIME DEFINED SEXUAL HARASSMENT IN THE WORKPLACE AND URGED COMPANIES TO TRY TO PREVENT SUCH INCIDENTS THE LABOR MINISTRY CHARACTERIZED HARASSMENT AS UNPLEASANT SPEECH OR CONDUCT WITH SEXUAL REFERENCES OR CONNOTATIONS THAT CREATE A DIFFICULT WORKING ENVIRONMENT IT SAID MANAGERS AND WORKERS HAVE FOUND IT DIFFICULT TO IDENTIFY AND DEAL WITH THE ISSUE FOR YEARS JAPANESE WOMEN HAVE ENDURED SEXUAL REMARKS BY MALE BOSSES AND COLLEAGUES BUT FEW SPOKE UP FOR FEAR OF RIDICULE OR REPRISALS IN THE MALEORIENTED SOCIETY A QUARTER OF WOMEN SURVEYED BY THE MINISTRY HAD BEEN HARASSED AT WORK THE MINISTRY WHICH WANTS TO MAKE IT EASIER FOR COMPANIES TO TAKE POSITIVE STEPS TO GUARD AGAINST HARASSMENT SEEKS A BUDGET FOR THE NEXT FISCAL YEAR TO START AN EDUCATIONAL CAMPAIGN FOR COMPANIES FRANCE TODAY BEGINS CIRCULATING A 50FRANC BANKNOTE WITH PORTRAITS OF ANTOINE DE SAINTEXUPERY AND CHARACTERS FROM HIS BOOK THE LITTLE PRINCE THE BILL IS THE FIRST IN A SERIES TO REPLACE NOTES DENOMINATED IN 100 200 AND 500 FRANCS OVER THREE YEARS THE NEW 50FRANC 863 BILL SMALLER THAN ITS PREDECESSOR HAS RAISED SYMBOLS AND LARGE LETTERS AND NUMBERS TO AID THE BLIND AND VISUALLY IMPAIRED AND USES STRONGER PAPER TO WITHSTAND AUTOMATED TRANSACTIONS TO FOIL COUNTERFEITERS IT INCORPORATES A METALLIC BAND COLORS THAT VEER WHEN THE BILL IS TILTED AND ONE PICTURE VISIBLE ONLY UNDER ULTRAVIOLET RAYS WITH THE COLD WAR OVER RADIO FREE EUROPE IS CUTTING BACK THE BOARD FOR INTERNATIONAL BROADCASTING THE US AGENCY THAT GOVERNS RADIO FREE EUROPE/RADIO LIBERTY PLANS TO REDUCE THE CURRENT STAFF OF 1530 TO 705 BY SEPT 31 1995 A RADIO SPOKESWOMAN SAYS THE RADIO MAY ALSO LEAVE ITS MUNICH HEADQUARTERS BECAUSE OF HIGH OPERATING COSTS AND PERHAPS MOVE TO PRAGUE RADIO LIBERTY WHICH BROADCASTS TO RUSSIA AND OTHER FORMER SOVIET REPUBLICS WON'T BE AFFECTED BY THE CONSOLIDATION SHE SAYS GIVEN THE CONTINUED POLITICAL INSTABILITY IN THE REGION A CONTRACTION IN GERMAN EXPORTS THIS YEAR THE FIRST SINCE 1986 WILL EXTEND INTO NEXT YEAR DESPITE A SLOW RECOVERY IN THE GLOBAL ECONOMY THE BGA EXPORT AND WHOLESALER ASSOCIATION SAID THE GROUP PREDICTED 1993 EXPORTS WILL SHRINK AT LEAST 7 TO 379 BILLION FROM A YEAR EARLIER AND IMPORTS WILL SLIDE 9 TO 354 BILLION THIS COULD COST BETWEEN 250000 AND 270000 JOBS MORE THAN THE BGA'S PREVIOUS PREDICTION OF 200000 JOB LOSSES BUT THE PACE OF DECLINE MAY SLOW NEXT YEAR WHEN EXPORTS COULD FALL 15 AND IMPORTS 25 WITH A REBOUND EXPECTED IN THE SECOND HALF AFGHANISTAN NEEDS 4 BILLION FOR ITS RECONSTRUCION PRESIDENT BURHANUDDIN RABBANI SAID ON A TOUR SEEKING FINANCIAL AID FROM RICH PERSIAN GULF STATES WAR DESTROYED 80 OF AFGHANISTAN'S INFRASTRUCTURE SUCH AS DAMS ROADS AND COMMUNICATIONS MR RABBANI WON SAUDI ARABIAN ASSISTANCE AND PLEDGES TO URGE HELP FROM OTHER COUNTRIES THE UNITED ARAB EMIRATES PROMISED AID AND INTENDS TO PLAY A PROMINENT ROLE IN THE RECONSTRUCTION CHINA SAID ITS ECONOMYCOOLING MEASURES ARE TAKING HOLD WITH URBAN INFLATION DOWN TO A 207 ANNUAL RATE IN SEPTEMBER FROM 233 IN JULY RESTRICTIONS WERE IMPOSED IN JUNE AND JULY ALSO TO RESOLVE A BANKING FUNDS SHORTAGE AFTER SPECULATIVE LENDING AND A RECORD 30 EXPANSION IN INDUSTRIAL OUTPUT IN JUNE THE ECONOMY STILL GREW 133 IN THE FIRST NINE MONTHS TO 34648 BILLION BUT THIRDQUARTER GROWTH SLOWED FROM THE FIRSTHALF PACE PRODUCTION IN THE LATEST QUARTER GREW 226 SLOWING THE NINEMONTH PACE TO 24 MONEYSUPPLY GROWTH BRAKED TO 22 FROM 30 LAST YEAR THE DEBTS THAT RUSSIAN STATE COMPANIES OWE EACH OTHER WHICH TOTALED 922 BILLION LAST MONTH WILL BE CONVERTED INTO TRADABLE SHORTTERM NOTES ON NOV 1 UNDER A NEW PRESIDENTIAL DECREE AS THE GOVERNMENT HAS CUT OFF SUBSIDIES TO UNPROFITABLE STATE ENTERPRISES MANY HAVE STOPPED PAYING SUPPLIERS WHEN THE NEW NOTES EXPIRE AFTER TERMS BETWEEN 45 AND 120 DAYS FAILURE BY DEBTORS TO PAY WOULD ALLOW THE SECURITIES TO BE SOLD CREDITORS ALSO COULD SUE FOR PAYMENT COMMERCIAL BANKS ARE TO CONVERT THE DEBTS INTO SECURITIES THE GOVERNMENT PLEDGED TO ENSURE A LIQUID SECONDARY MARKET IN THE NOTES RUSSIA NOW LACKS A CORPORATE DEBT MARKET SEPARATELY RUSSIA PREDICTED ITS INFLATION RATE WHICH HIT 2400 LAST YEAR WILL SLOW ONLY TO 1000 THIS YEAR AS TIGHT MONETARY POLICY IS PRESSURED BY INCREASES IN FORMERLY SUBSIDIZED PRICES IN THE FIRST NINE MONTHS PRICES ROSE 478 THIS YEAR'S GROSS NATIONAL PRODUCT COULD TUMBLE BETWEEN 18 AND 20 FROM 1992 WHEN IT CONTRACTED 19 A STRIKE BY AIR FRANCE WORKERS PARALYZED PARIS'S TWO MAIN AIRPORTS CANCELING ALL COMMERCIAL FLIGHTS AND COSTING THE AIRPORTS 12 MILLION IN LOST REVENUES THE ONEDAY WALKOUT WAS THE MOST SERIOUS OF SEVERAL SINCE THE UNPROFITABLE STATE AIRLINE LAST MONTH SAID IT WOULD CUT 4000 JOBS IN PROTESTS AGAINST ITALY'S BUDGETCUTTING POLICIES TRANSIT DRIVERS STAGED A STRIKE TO LAUNCH A WAVE OF WALKOUTS BY TRAFFIC POLICE TODAY PORT WORKERS TOMORROW AND AVIATION EMPLOYEES NEXT TUESDAY TO BE FOLLOWED BY A FOURHOUR GENERAL STRIKE OCT 28 9310200131 931020 NOW DRIVERS HOLDING CAR PHONES CAN MAKE USE OF THE OTHER HAND BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO DRIVERS MAY SOON DECIDE THAT TRAFFIC JAMS CAN BE FUN FUJITSU LTD YESTERDAY UNVEILED A GADGET THAT COULD HAVE DRIVERS SINGING MY WAY OR THE INFORMATION HIGHWAY WITH CAR MARTY A CDROM PLAYER BILLED AS THE WORLD'S FIRST AUTOMOTIVEUSE MULTIMEDIA MACHINE DRIVERS AND THEIR PASSENGERS WHOSE VEHICLES ARE EQUIPPED WITH TV SETS WILL BE ABLE TO PLAY VIDEO GAMES ANSWER TRIVIA QUESTIONS LISTEN TO MUSIC AND NAVIGATE CROSSCOUNTRY ALTHOUGH NOT NECESSARILY ALL AT THE SAME TIME THEY'LL EVEN BE ABLE TO REV UP VIDEOS SO THEY CAN SING KARAOKE THAT'S NOT REALLY AIMED AT THE CAR MARKET SAYS A FUJITSU SPOKESMAN IT'S MORE FOR PEOPLE IN VANS AND BUSES AS THEY PARTY ALONG A FLAT GRAY BOX THAT PLUGS INTO THE DASHBOARD CIGARETTELIGHTER SOCKET CAR MARTY IS DESIGNED FOR PEOPLE WHOSE PERSONAL MULTIMEDIA REVOLUTION IS ALREADY IN HIGH GEAR THE PRODUCT IN FACT WAS ORIGINALLY A HOMEENTERTAINMENT COMPUTER ATTACHED TO A TELEVISION SET FUJITSU GAVE THE GREEN LIGHT FOR ITS ADAPTATION TO VEHICLE USE WHEN AN AUTOELECTRONICS AFFILIATE SIGNALED THAT IT NEEDED AN INEXPENSIVE COMPUTER IT COULD USE IN A CARNAVIGATION SYSTEM THE NAME MARTY BY THE WAY IS A JAPANESE ABBREVIATION FOR MAHBEHRAS TEREBI OR MARVELOUS TELEVISION WE DON'T TEND TO SPREAD THAT AROUND SAYS THE SPOKESMAN FUJITSU BOASTS THAT CAR MARTY'S ONEHAND CONTROL PAD ENSURES SIMPLE AND SAFE OPERATION BUT WHAT HAPPENS WHEN INTERACTIVITY VERGES ON HYPERACTIVITY A CASE IN POINT IS TURBO OUTRUN A CAR MARTY GAME IN WHICH PLAYERS RACE ACROSS THE BADLANDS OF NEW JERSEY WHERE EVEN NOW DRIVERS PLAY GAMES WITH ONE ANOTHER EN ROUTE FROM NEW YORK TO WASHINGTON YOU CHASE AFTER THE BAD GUYS AND TRY TO RUN THEM OFF THE ROAD SAYS MAKOTO SAITO A FUJITSU EMPLOYEE AND A BIG FAN OF THE GAME THAT SOUNDS LIKE A ROAD MAP FOR DISASTER BUT FUJITSU DOESN'T THINK US DRIVERS WILL BE TEMPTED TO TURN VIRTUAL REALITY INTO VIRTUAL ACCIDENTSWAITINGTOHAPPEN ANYTIME SOON ONE REASON THEY WON'T HAVE MUCH OF A CHANCE SINCE THE COMPANY DOESN'T HAVE ANY IMMEDIATE PLANS TO SELL CAR MARTY ON THE EASTERN SEABOARD OR ANYWHERE ELSE IN THE US FOR THAT MATTER BESIDES SAYS MR SAITO THE GAME IS MUCH EASIER TO PLAY WITH TWO HANDS 9310200130 931020 LAW LEGAL BEAT AT&T REINS IN MIDLEVEL DEFECTOR AS TECHNOLOGY RIVALRIES HEAT UP BY JENNIFER CODY STAFF REPORTER OF THE WALL STREET JOURNAL WHY IS AMERICAN TELEPHONE & TELEGRAPH CO SEEKING TO BLOCK A MERE MIDLEVEL SOFTWARE ENGINEER FROM MOVING TO RIVAL FUJITSU LTD AT&T SAYS IT'S TRYING TO KEEP FUJITSU FROM GAINING ACCESS TO CONFIDENTIAL INFORMATION TO WHICH THE 47500AYEAR EMPLOYEE KAMESWAR R ATI MAY BE PRIVY AND IT HAS WON A PRELIMINARY COURT ORDER FROM A NEW JERSEY JUDGE BLOCKING MR ATI'S MOVE UNTIL THE ISSUE CAN BE RESOLVED WHILE FIGHTS OVER JOB SWITCHES BY HIGHLEVEL EMPLOYEES ARE QUITE COMMON IN MANY FIELDS PURSUING A CASE AGAINST AN EMPLOYEE SO FAR DOWN THE CORPORATE LADDER IS UNUSUAL ACCORDING TO TRADESECRET SPECIALISTS THEY SAY THAT AT&T'S ACTION ITS SECOND SUCH LEGAL MOVE IN THE PAST TWO YEARS MAY PORTEND AN ESCALATION OF TRADESECRET WARS IN THE BURGEONING TELECOMMUNICATIONS INDUSTRY THIS IS A VERY HOT AREA AND TECHNOLOGICAL LEADERSHIP IS VITAL IT'S THE SAME AS THE SEMICONDUCTOR INDUSTRY A DECADE AGO SAYS JACK BROWN OF PHOENIX LAW FIRM BROWN & BAIN WHICH HAS HANDLED SIMILAR TRADESECRET DISPUTES IN THE COMPUTER FIELD IN ITS CASE AT&T IS SEEKING A PERMANENT INJUNCTION BARRING MR ATI FROM WORKING ON FUJITSU PRODUCTS RELATED TO THE ALLEGEDLY PRIVILEGED INFORMATION FOR ONE YEAR THE 33YEAROLD MR ATI WHO HAS WORKED 10 YEARS IN THE SOFTWARE GROUP AT AT&T'S BELL LABORATORIES IN HOLMDEL NJ REPLIES THAT HE KNOWS LITTLE ABOUT THE TECHNOLOGY AT ISSUE WHICH INVOLVES FORMULATING SOLUTIONS FOR LINESWITCHING IN FIBEROPTIC COMMUNICATION PRODUCTS I HAD ACCESS BUT I WAS NEVER DIRECTLY INVOLVED IN THE DESIGN OR IMPLEMENTATION OF LINESWITCHING MR ATI SAYS I DON'T SEE HOW I CAN HELP FUJITSU WITH ANYTHING THAT IS IN MY MEMORY LAWYERS FOR AT&T INSIST HOWEVER THAT MR ATI'S AT&T EXPERIENCE IS OF VALUE TO FUJITSU THEY POINT TO FUJITSU'S SWEETER COMPENSATION PACKAGE 62000 A YEAR AS EVIDENCE IF HE WERE JUST AN AVERAGE JOE' IT WOULD BE ASTONISHING TO OFFER HIM THAT KIND OF A SALARY INCREASE SAYS BERNARD ZUCKER A SENIOR ATTORNEY WITH AT&T'S INTELLECTUALPROPERTY GROUP SUPERIOR COURT JUDGE PATRICK J MCGANN IN FREEHOLD NJ LAST MONTH GAVE SOME CREDENCE TO AT&T'S CONCERNS WHEN HE BARRED MR ATI FROM WORKING OR COMMUNICATING WITH FUJITSU UNTIL THE CASE GOES TO TRIAL PROBABLY IN ABOUT SIX MONTHS BUT HE ALSO EXPRESSED SYMPATHY FOR THE LITTLE ONE IN THE MIDST OF TWO GIANTS WHO WOULD LIKE TO CRUSH EACH OTHER AND ORDERED AT&T TO PAY MR ATI'S SALARY FOR THE DURATION OF THE INJUNCTION THOUGH AT&T'S LEGAL APPROACH IS UNUSUALLY AGGRESSIVE THE COMPANY HAS REASON TO BE ON GUARD THESE DAYS SAYS MICHAEL ARELLANO AN ANALYST WITH NORTHERN BUSINESS INFORMATION INC COMPETITION IN THE COMMUNICATIONS TRANSMISSION FIELD IS INTENSE AND AT&T HAS SEEN PROFITS IN SOME SECTORS ERODE WITH ALARMING SPEED IN THE DIGITALSWITCHING MARKET FOR EXAMPLE CANADIAN COMPETITOR NORTHERN TELECOM LTD WAS ABLE TO SNAP UP NEARLY HALF OF THE US MARKET IN THE PAST DECADE MUCH OF IT AT AT&T'S EXPENSE THE THREAT FROM JAPANESE COMPETITORS IS CONSIDERED JUST AS GREAT IF NOT GREATER MR ATI'S MOVE RAISES PARTICULAR CONCERNS BECAUSE STAKES IN THE FIBEROPTIC MARKET REGULATED BY THE SYNCHRONOUS OPTICAL NETWORK OR SONET INDUSTRY STANDARD WHERE AT&T HOLDS AN ACKNOWLEDGED LEAD ARE ESPECIALLY HIGH THE MARKET FOR SONET FIBER TERMINALS IS EXPECTED TO GROW TO 900 MILLION IN 1996 FROM 300 MILLION THIS YEAR WHILE THE MARKET FOR SONET EQUIPMENT CURRENTLY 500 MILLION COULD BE AS HIGH AS 2 BILLION BY 1997 BY SOME ESTIMATES DEVELOPMENTS SUCH AS THE RECENT BELL ATLANTIC CORP AGREEMENT TO ACQUIRE TELECOMMUNICATIONS INC UNDERSCORE THE POINT THE VAUNTED INFORMATION HIGHWAYS OF THE NEAR FUTURE ARE GOING TO NEED SONETBASED BACKBONES SAYS NORTHERN BUSINESS'S MR ARELLANO AT&T'S REPUTATION FOR EMPLOYING THE COUNTRY'S BEST ENGINEERS FRUITFUL TURF FOR HEADHUNTERS CONTRIBUTES TO THE COMPANY'S SENSE OF VULNERABILITY INDUSTRY OBSERVERS NOTE AT&T OFFICIALS HAVE CITED A BLITZKRIEG BY EMPLOYMENT AGENCIES ON ITS PAINSTAKINGLY TRAINED EMPLOYEES CHARGING THAT IN RECENT MONTHS 46 OF 61 SOFTWARE DEVELOPERS HAVE BEEN CONTACTED BY HEADHUNTERS WHO LIST FUJITSU AS A POTENTIAL NEW EMPLOYER LAWYERS REPRESENTING FUJITSU DENY THAT THERE HAS BEEN ANY DELIBERATE RAIDING OF AT&T NOTING THAT A NUMBER OF AT&T ENGINEERS IN POSITIONS SIMILAR TO MR ATI'S HAVE LEFT FOR OTHER RIVAL COMPANIES UNCHALLENGED THEY DO HOWEVER ACKNOWLEDGE AGGRESSIVE RECRUITING IN PAST MONTHS WHILE SUCH FACTORS MIGHT LEND INSIGHT INTO AT&T'S RECENT ACTIONS LEGAL AND INDUSTRY OBSERVERS EXPRESS UNEASE WHERE DO YOU DRAW THE LINE MR ARELLANO WONDERS IT SOUNDS LIKE YOU NOW HAVE 61 ENGINEERS WHO CAN'T LEAVE AT&T WITHOUT TAKING A ONEYEAR VACATION JOHN COFFEE WHO TEACHES COURSES ON CORPORATE BUSINESS AND WHITECOLLAR CRIME AT COLUMBIA UNIVERSITY LAW SCHOOL SAYS THE IMPLICATIONS COULD BE MORE SWEEPING ON THE OTHER SIDE OF THIS ISSUE IS HUMAN RIGHTS WHETHER OR NOT A COMPANY CAN ENCUMBER AND DEPRIVE EMPLOYEES OF THEIR HUMAN CAPITAL MR COFFEE SAYS YOU HAVE TO BE ABLE TO TAKE SOME OF YOUR INFORMATION WITH YOU OR YOU LOSE ALL YOUR MOBILITY IF YOU REPEAL THAT YOU ARE BEING MADE A KIND OF SLAVE TO THE CORPORATION SHAREHOLDER ACTIVISTS PLAN TO STEP UP EFFORTS TO PLACE QUESTIONS ON PROXY BALLOTS ADDRESSING EQUALEMPLOYMENT ISSUES IN THE WAKE OF A FEDERAL COURT DECISION LAST WEEK IN THE RULING ON FRIDAY JUDGE KIMBA M WOOD IN NEW YORK ENJOINED THE SECURITIES AND EXCHANGE COMMISSION FROM AUTHORIZING COMPANIES TO OMIT SUCH SHAREHOLDER PROPOSALS THE SPECIFIC DECISION INVOLVES CRACKER BARREL OLD COUNTRY STORE INC A 162STORE FOOD CONCERN IN THE SOUTHEAST WHICH RECEIVED A FAVORABLE RULING LAST OCTOBER FROM THE SEC KNOWN AS A NOACTION LETTER THE LETTER ENABLED CRACKER BARREL BASED IN LEBANON TENN TO OMIT FROM ITS PROXY STATEMENT A SHAREHOLDER RESOLUTION ASKING IT TO ADOPT A POLICY PROHIBITING DISCRIMINATION AGAINST HOMOSEXUALS JUDGE WOOD'S RULING MEANS THE PROPOSAL WILL APPEAR IN CRACKER BARREL PROXY MATERIALS TO BE DISTRIBUTED TO SHAREHOLDERS IN TIME FOR THE COMPANY'S NOV 22 SHAREHOLDER MEETING CRACKER BARREL WASN'T A PARTY TO THE LITIGATION THE ACTUAL LAWSUIT WAS BROUGHT AGAINST THE SEC BY THE NEW YORK CITY EMPLOYEES RETIREMENT SYSTEM AND OTHER LARGE PENSION FUNDS THAT OWN CRACKER BARREL STOCK MORE BROADLY THE RULING PROHIBITS THE SEC FROM CONTINUING A POLICY BEGUN DURING THE BUSH ADMINISTRATION OF NARROWING THE TYPES OF SOCIAL PROPOSALS THAT QUALIFY FOR SHAREHOLDER VOTES UNLESS THE SEC SUBMITS THE POLICY TO THE FORMAL ADMINISTRATIVE RULEMAKING PROCESS INCLUDING PUBLIC COMMENT THE SEC HAD ARGUED THAT EMPLOYMENTRELATED ISSUES WERE ORDINARY BUSINESS OPERATIONS THAT WEREN'T PROPER SUBJECTS FOR SHAREHOLDER VOTING A SPOKESMAN FOR THE SEC SAID IT WOULD HAVE NO COMMENT UNTIL JUDGE WOOD ISSUES A FULL ORDER AND OPINION A SPOKESMAN FOR THE AMERICAN SOCIETY OF CORPORATE SECRETARIES ALSO DECLINED TO COMMENT THE DECISION HAS BEEN ANTICIPATED BY SHAREHOLDER ACTIVISTS SINCE LAST SPRING WHEN JUDGE WOOD SUGGESTED IN A OPINION INVOLVING WALMART STORES INC THAT THE SEC HAD MISAPPLIED ITS OWN RULES TO KEEP EMPLOYMENTRELATED QUESTIONS OFF PROXY BALLOTS THE AGENCY WASN'T A PARTY IN THAT CASE BUT THE DISCOUNT RETAILER WAS ULTIMATELY ORDERED TO PUT TO A SHAREHOLDER VOTE A PROPOSAL CALLING FOR IT TO COMPILE REPORTS ON ITS EQUALEMPLOYMENT AND AFFIRMATIVEACTION PROGRAMS THE RESOLUTION WAS DEFEATED BY A LARGE MARGIN SHAREHOLDER GROUPS SAID THE LATEST RULING WILL ENABLE THEM TO EXPAND EFFORTS BEGUN IN THE PAST YEAR TO HAVE CORPORATIONS ADDRESS EMPLOYMENTDISCRIMINATION ISSUES THIS IS A STEP FORWARD FOR SHAREHOLDERS SEEKING TO CHALLENGE COMPANIES THAT DISCRIMINATE AGAINST EMPLOYEES SAID A SPOKESMAN FOR THE NEW YORK CITY EMPLOYEES RETIREMENT SYSTEM ARBITRATION DEADLINE AN INVESTOR WHO ALLEGED RACIAL BIAS IN SECURITIES ARBITRATION ISN'T BOUND BY THE THREEMONTH TIME LIMIT FOR CHALLENGING ARBITRATION AWARDS A FEDERAL APPEALS COURT RULED INSTEAD THE APPEALS COURT IN NEW YORK SAID THE ONEYEAR AND THREEYEAR DEADLINES SET FORTH UNDER CIVILRIGHTS LAWS APPLY REVERSING A LOWERCOURT RULING THE APPEALS COURT ALLOWED THE CIVILRIGHTS CLAIM TO PROCEED IN A CASE SEEKING 11 MILLION IN DAMAGES OVER THE HANDLING OF THE INVESTOR'S SECURITIES ACCOUNTS MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE 9310200129 931020 LEISURE & ARTS DANCE EARTHMOTHERS AND DAUGHTERS BY DALE HARRIS NEW YORK MARTHA GRAHAM DIED IN 1991 LONG AFTER THE EXTINCTION OF HER CREATIVE TALENT BY THE TIME SHE WAS FINALLY PERSUADED TO QUIT THE STAGE IN 1968 AT THE AGE OF 74 THERE WAS LITTLE LEFT TO SHOW WHY SHE HAD EXERCISED SO GREAT AN INFLUENCE ON DANCE DURING THE 1930S AND 1940S NOT ONLY WERE HER NEW PIECES WITHOUT EXCEPTION POOR HER OLDER MORE SUBSTANTIAL ONES RETAINED ONLY A VESTIGE OF THEIR ORIGINAL GRAVITY AND TENSION QUALITIES FUNDAMENTAL TO THEIR THEATRICAL EFFECTIVENESS AS RECENTLY PERFORMED AT CITY CENTER BY THE MARTHA GRAHAM DANCE COMPANY HER WORKS LATE AND EARLY ALIKE LOOK THOROUGHLY INCONSEQUENTIAL DEATHS AND ENTRANCES FOR EXAMPLE A PSYCHODRAMA INSPIRED BY THE BRONTE SISTERS HARDLY TRANSCENDS THE RISIBLE PARTLY BECAUSE OF THE WEAKNESS OF THE DANCING BY THE WORK'S PRESENT INTERPRETERS AND PARTLY BECAUSE OF GRAHAM'S DEFICIENCIES AS A CHOREOGRAPHER IN 1943 WHEN DEATHS AND ENTRANCES WAS NEW THE LATE EDWIN DENBY AMERICA'S GREATEST DANCE CRITIC CALLED IT LONG OBSCURE OF INTENSE INTEREST AND EXTRAORDINARY RICHNESS OF INVENTION IN THE REVIVAL AT CITY CENTER IT WAS MERELY LONG AND OBSCURE A PROTRACTED EXCURSION INTO EMOTIONAL HYSTERIA DURING THE COURSE OF WHICH A GROUP OF WOMEN WRESTLE WITH PROBLEMS WHOSE NATURE IS NEVER MADE EITHER CLEAR OR INTERESTING PART OF THE TROUBLE IS THE LACK OF DANCE VALUES IN GRAHAM'S WORK IN DEATHS AND ENTRANCES THE CHARACTERS NAMED WITH AN ALLTOO TYPICAL PORTENTOUSNESS THE THREE SISTERS THE THREE REMEMBERED CHILDREN THE DARK BELOVED THE POETIC BELOVED AND THE CAVALIERS ARE CONCEIVED IN TERMS NOT OF SPATIAL MOVEMENT BUT OF DRAMATIC POSTURING EACH OF THE PERSONAGES IT'S TRUE HAS STEPS TO PERFORM BUT THESE NEVER COHERE INTO LARGER CHOREOGRAPHIC STATEMENTS OR ACHIEVE FORMAL SELFSUFFICIENCY THEIR FUNCTION IS MERELY TO DEMONSTRATE TICS OF PERSONALITY MOREOVER MOST OF THE STEPS ARE UNGAINLY SPASTIC HOBBLED AND STIFF WORSE THEY ARE INEXPLICABLY SO IT'S HARD TO TELL WHAT GRAHAM HAD IN MIND BY USING MOVEMENTS AT ONCE SO UNFLATTERING TO THE HUMAN BODY AND SO LIMITED IN EXPRESSIVITY IT IS ALSO UNFORTUNATE THAT GRAHAM'S ATTEMPT TO FIND OBJECTIVE CORRELATIVES FOR HER CHARACTERS' PSYCHOLOGICAL STATES FREQUENTLY LED HER INTO ABSURDITY DURING DEATHS AND ENTRANCES THE WOMEN ARE FORCED TO STARE MEANINGFULLY AT AND SOMETIMES TO TOUCH A NUMBER OF PROPS A PAIR OF VASES A GOBLET A SHELL TWO CHESSMEN THOUGH GRAHAM MUST HAVE INTENDED SOME THEMATIC SIGNIFICANCE FOR THESE OBJECTS ONE CAN ONLY GUESS AT WHAT IT WAS AND TRY TO IGNORE THE SILLINESS ACTUALLY ONSTAGE THE SIGHT OF THE SISTERS TOYING WITH A PAIR OF OVERSIZED ALLTOO PHALLIC CHESSMEN ONE WHITE THE OTHER RED WHILE EXCHANGING BALEFUL GLANCES WITH ONE ANOTHER AWAKENS RESPONSES THAT DO NOT SUSTAIN THE PIECE'S PRESUMABLY SERIOUS AIMS GRAHAM'S PROGRAM NOTE OFFERS NO CLUE TO HER ARTISTIC INTENTIONS IN DEATHS AND ENTRANCES ONLY TO A BURNING DESIRE TO BE TAKEN SERIOUSLY NUMBINGLY PRETENTIOUS SHE BEGINS THIS IS A LEGEND OF THE HEART'S LIFE BECOMING YET MORE OBSCURE AND FALSE AS SHE GOES ALONG THE ENDING THERE ARE DEATHS AND ENTRANCES' OF HOPES FEARS REMEMBRANCES DREAMS AND AN ULTIMATE VISION IS TYPICAL OF THE OBSCURE HIGHTONED KITSCH SHE PURVEYED SO FREQUENTLY ESPECIALLY IN THE LATTER PART OF HER CAREER WHEN HER CHOREOGRAPHY WAS MORE OFTEN THAN NOT A SLICK FUSION OF POP PSYCHOLOGY AND CLASSICAL MYTH SERAPHIC DIALOGUE THOUGH LESS MELODRAMATIC THAN DEATHS AND ENTRANCES IS EVEN MORE TEDIOUS IN ITS EFFORT TO ILLUSTRATE VARIOUS ASPECTS OF JEANNE D'ARC WHO IS SEEN IN TURN AS MAID WARRIOR AND MARTYR THIS IS ONE OF THOSE SANCTIMONIOUS PIECES IN WHICH DANCERS IMITATE THE POSES OF SACRED FIGURES IN RELIGIOUS ART ISAMU NOGUCHI'S GOLD WIRE CONSTRUCTION WHICH SERVES AS THE SET ATTEMPTS TO SUGGEST THE CONFIGURATIONS OF A STAINEDGLASS PICTURE BUT ONLY SUCCEEDS IN LOOKING LIKE SOMETHING LEFT OVER FROM A 1950S WINDOW DISPLAY THE COSTUMES BY HALSTON ARE MORE JOAN CRAWFORD THAN JOAN OF ARC AND THE MUSIC BY NORMAN DELLO JOIO LACKS NOT MERELY SOUL BUT PERSONALITY ACCORDING TO THE PROGRAM THE GRAHAM SEASON IS DEDICATED TO RUDOLF NUREYEV WHOM WE ARE TOLD THE CHOREOGRAPHER CALLED ONCE OFTEN ALL THE TIME A GOD OF LIGHT WHAT SHE USED TO CALL TWYLA THARP IS NOT DISCLOSED WHAT THE AUDIENCE AT THE PERFORMANCE I ATTENDED WOULD HAVE CALLED MS THARP IF POLLED BY THE MANAGEMENT IS I IMAGINE A BLESSED RELIEF AT THE END OF DEMETER AND PERSEPHONE THE FIRST PIECE MADE FOR THE GRAHAM COMPANY BY THE CONTEMPORARY CHOREOGRAPHER THE AUDIENCE BURST INTO CHEERS THIS WAS THE ONLY SIGN OF ENTHUSIASM IT WAS ABLE TO MUSTER DURING THE ENTIRE SHOW UNDERSTANDABLY DEMETER AND PERSEPHONE DEMONSTRATED THE VERY QUALITIES LACKING IN THE OTHER PIECES ON VIEW ENERGY STRUCTURE A DEDICATION TO DANCE RATHER THAN TO CHARACTER ANALYSIS OR PHILOSOPHICAL INQUIRY IT ALSO ELICITED FROM THE DANCERS A LIVELIER PERFORMANCE THAN DID THE OTHER ITEMS ON THE PROGRAM THOUGH I HAVE LITTLE DOUBT THAT THE CHOREOGRAPHER'S OWN COMPANY WOULD HAVE GIVEN IT GREATER PRECISION WHEN THE WORK WAS PREVIEWED DURING MS THARP'S RECENT SEASON AT THE SAME THEATER IT LOOKED AND WITH THE CHOREOGRAPHER'S CONFUSING SPOKEN INTRODUCTION SOUNDED MERELY FOOLISH IN THE EVENT IT HAS TURNED OUT TO BE MORE WITTY THAN JOKEY A SUITE OF DANCES IN WHICH THE THEMES OF PERSEPHONE'S RAVISHMENT BY PLUTO OF DEMETER'S LAMENTATION OVER THE LOSS OF HER DAUGHTER AND OF THE ESTABLISHMENT OF THE ELEUSINIAN MYSTERIES ARE EFFORTLESSLY ABSORBED INTO AN IRRESISTIBLE FLOW OF MOVEMENT ALL OF IT LINKED IN RHYTHM AND MOOD TO THE JOYOUS SOUND OF KLEZMER MUSIC ONE OF THE NUMBERS FOR TWO MEN AND A FEMALE CHORUS IS ESPECIALLY INVENTIVE AND EBULLIENT IN CONTRAST TO GRAHAM'S PRACTICE MS THARP DOESN'T USE NOTES TO AFFECT THE AUDIENCE'S ATTITUDE TOWARD HER WORK INDEED THE PROGRAM WHICH EVEN FAILS TO IDENTIFY DEMETER AND HER DAUGHTER FOR THOSE WHO MIGHT HAVE FORGOTTEN THEIR IDENTITY LISTS NO CHARACTERS AT ALL IT MERELY GIVES THE NAMES OF THE PERFORMERS LED BY CHRISTINE DAKIN RIKA OKAMOTO AND TERESE CAPUCILLI FROM WHOM AS IT HAPPENS THE CHOREOGRAPHER HAS ELICITED A GREAT DEAL OF SPIRIT ONLY THE TITLE OFFERS A CLUE TO THE NARRATIVE ELEMENTS THAT UNDERLIE THE CHOREOGRAPHY WHICH WITH ITS EMPHASIS ON SELFSUFFICIENT DANCE HAS GIVEN THE GRAHAM COMPANY SOMETHING IT OTHERWISE LACKS 9310200128 931020 LETTERS TO THE EDITOR CALIFORNIA'S POSITION ON SMOG CHECK PLAN YOUR SEPT 13 ARTICLE EPA GIVES CALIFORNIA MORE TIME TO MEET US CLEANAIR STANDARDS ACCURATELY REPORTS THE FEDERAL GOVERNMENT'S DECISION TO GIVE THE STATE AN OPPORTUNITY TO REVISE ITS VEHICLE INSPECTION PROGRAM TO MEET EPA GUIDELINES IT DOES HOWEVER ALSO INCLUDE A DISTURBING ALLEGATION FROM AN EPA OFFICIAL THAT FALSELY PORTRAYS THE STATE'S REACTION TO MANDATES FROM WASHINGTON THE HEAD OF EPA'S MOBILE SOURCE PROGRAM SAYS THAT CALIFORNIA OFFICIALS WERE QUIETLY URGING ADOPTION OF A CENTRALIZED INSPECTION PROGRAM FAVORED BY EPA WHILE PUBLICLY OPPOSING IT WHILE ALSO PLACING BLAME ON EPA FOR THE REQUIREMENT UNFORTUNATELY THE ALLEGATION DOES NOT REFLECT THE STATE'S POSITION ON THIS ISSUE OR ITS ACTIONS TO REVAMP ITS SMOG CHECK PROGRAM CALIFORNIA CURRENTLY IS REVISING ITS SMOG CHECK PROGRAM INCLUDING AN UPGRADING OF TESTING EQUIPMENT STRONGER ENFORCEMENT TO PREVENT FRAUDULENT INSPECTIONS AND METHODS OF IDENTIFYING HIGH POLLUTING VEHICLES BETWEEN REGULAR INSPECTIONS WE HAVE REPEATEDLY ASKED EPA FOR AN OPPORTUNITY TO SHOW THAT THIS COMBINATION OF FACTORS WOULD REDUCE EMISSIONS AS MUCH AS FEDERAL GUIDELINES CALL FOR AND WE WILL CONTINUE TO REQUEST THAT FLEXIBILITY 9310200127 931020 LETTERS TO THE EDITOR THE CASE FOR/AGAINST STUDENT JUDGES WHILE NORMALLY I WOULD BE PLEASED TO SEE ONE OF OUR STUDENTS BECOME INVOLVED IN PUBLIC DISCOURSE SCOTT GOTTLIEB'S SEPT 27 EDITORIALPAGE PIECE ON STUDENT JUDICIAL BOARDS A MOCKERY OF JUSTICE ON CAMPUS CONTAINS A NUMBER OF SERIOUS MISREPRESENTATIONS AND DISTORTIONS CONTRARY TO THE PICTURE MR GOTTLIEB PAINTS OF AN ALLPOWERFUL STUDENT JUDICIAL BOARD CONDUCTING STAR CHAMBER PROCEEDINGS WITHOUT ADMINISTRATIVE OVERSIGHT WESLEYAN'S BOARD ALWAYS MEETS WITH THE DEAN OF THE COLLEGE AND A FACULTY ADVISER PRESENT AND MEMBERS OF THE FACULTY AND ADMINISTRATION OFTEN SERVE AS COUNSELORS TO BOTH THE ACCUSED AND THE COMPLAINANT THE PRESIDENT RETAINS FINAL AUTHORITY UPON RECEIVING AN APPEAL HE CAN OVERTURN SANCTIONS HE DEEMS INAPPROPRIATE IN THE SIX WESLEYAN CASES MR GOTTLIEB REFERS TO INCLUDING HIS OWN ALL THE ACCUSED PARTIES WERE EXONERATED HENCE HIS OWN EXAMPLES HARDLY SUPPORT HIS ASSERTION THAT THE BOARDS USE THEIR INFLUENCE TO PUNISH THOSE WHO DARE TO STRAY FROM THE PREVAILING IDEOLOGICAL HEGEMONY WHATEVER THAT MEANS MR GOTTLIEB CLAIMS THAT HIS EXONERATION FROM TRUMPEDUP CHARGES CAME ABOUT ONLY AFTER A PROTRACTED INVESTIGATION AND A LENGTHY HEARING YET THIS PROTRACTED PROCESS HOWEVER UNNECESSARY HE MAY HAVE FELT IT TO BE DID WORK IN HIS FAVOR AT WESLEYAN EVIDENCE IS WEIGHED CAREFULLY BY THE JUDICIAL BOARD THESE CONSCIENTIOUS STUDENTS DEVOTE A GREAT DEAL OF TIME TO THE MORE DIFFICULT CASES THEIR DELIBERATIONS TAKE PLACE IN SECRECY FOR A VERY GOOD REASON TO PRESERVE THE PARTIES' PRIVACY ON A SMALL CAMPUS DESPITE WHAT MR GOTTLIEB CLAIMS ALL WRITTEN TESTIMONY IN A CASE IS AVAILABLE TO BOTH PARTIES UP TO THE TIME OF THE HEARING AND BOTH PARTIES ARE PRESENT AT THE HEARING I FIND IT DIFFICULT TO IMAGINE THAT MR GOTTLIEB WOULD BE EAGER TO SURRENDER ALL JUDICIAL AUTHORITY TO COLLEGE OFFICIALS REMOVING SUCH AUTHORITY FROM STUDENTS AND INSERTING LEGAL COUNSEL INTO THE PICTURE WOULD IN MY VIEW REPRESENT THE REAL THREAT TO INDIVIDUAL LIBERTIES AND FAIR PROCESS THAT MR GOTTLIEB IS APPARENTLY CONCERNED WITH MR GOTTLIEB'S REPRESENTATION OF A CASE LAST SPRING AT BROWN UNIVERSITY WAS WOEFULLY MISINFORMED HE REDUCED A VERY SERIOUS INCIDENT TO THREE VULGAR MESSAGES LEFT ON AN ANSWERING MACHINE AND FURTHER RATIONALIZED THE INCIDENT BY NOTING THAT THE STUDENT IN QUESTION WAS TOO INEBRIATED TO REMEMBER WHAT HE HAD DONE IT WAS HE WROTE A MINOR ADMITTEDLY JUVENILE TRANSGRESSION THAT STUDENT'S PEERS MEMBERS OF THE BROWN FACULTY VARIOUS DEANS AND OTHER ADMINISTRATORS WHO HEARD THE CASE OR WERE PART OF ITS TRAVEL THROUGH OUR DISCIPLINARY SYSTEM DISAGREED WITH SUCH AN ASSESSMENT THE VERDICT HAD NOTHING TO DO WITH PUNISHING THOSE WHO DARE TO STRAY FROM THE PREVAILING IDEOLOGICAL HEGEMONY MR GOTTLIEB DOES NOT KNOW THE SPECIFICS OF THE CASE MUCH LESS THE RECORD OF EVIDENCE AND THEREFORE CANNOT POSSIBLY BE IN A POSITION TO JUDGE THE SEVERITY OF THE INCIDENT IN AN IRONIC SENSE MR GOTTLIEB AGREES WITH BROWN'S DISCIPLINARY COMMITTEE ON ONE IMPORTANT POINT A FOURANDONEHALF YEAR SUSPENSION IS TOO SEVERE FOR MERE VULGARITY OR JUVENILE TRANSGRESSIONS MAKE ONE WRONG MOVE SAY THE WRONG WORDS AND YOU COULD FIND YOURSELF BEGGING FOR MERCY FROM FOUR STUDENTS IN THEIR LATE TEENS WHO HAVE JUST PLEDGED ALLEGIANCE TO THE COLLEGE HANDBOOK EAGER TO PUNISH ANY OFFENDER WORSE YET MOST COLLEGE COMMUNITIES ARE SMALL AND INTIMATE PEOPLE KNOW EACH OTHER PICTURE YOURSELF BEING TRIED BY AN EXGIRLFRIEND'S BEST FRIEND OR MEMBER OF A RIVAL FRATERNITY DON'T LAUGH IT HAPPENED TO ME AND DON'T FORGET ABOUT RUMORS AND GOSSIP EITHER IMAGINE PLEADING A CASE TO A STUDENT JUDGE THINKING TO HIMSELF THIS GUY IS LYING MY ROOMMATE'S GIRLFRIEND'S LAB PARTNER TOLD ME THE REAL STORY WHICH SHE HEARD AT THE BAR LAST NIGHT DEANS SHOULD DECIDE A GUILTY VERDICT AND HAND OUT PUNISHMENTS STUDENTRUN JUDICIAL BOARDS SHOULD ONLY ADVISE I STRONGLY OBJECT TO MR GOTTLIEB'S CLAIM THAT JUDICIAL BOARDS HAVE NO RIGHT TO TRY CASES INVOLVING SERIOUS ISSUES SUCH AS RAPE THAT COULD BE TRIED IN THE CRIMINAL JUSTICE SYSTEM HE IGNORES THE FACT THAT CRIMINAL CODES ARE VASTLY DIFFERENT FROM CAMPUS CODES OF CONDUCT AND THAT BEHAVIORAL EXPECTATIONS IN THESE TWO AREAS DIFFER GREATLY ADDITIONALLY A CAMPUS COMMUNITY HAS EVERY RIGHT TO DEAL WITH THOSE MEMBERS WHO CHOOSE TO VIOLATE THE RULES OF THEIR COMMUNITY IN HIS EXAMPLE OF A RAPE TAKING PLACE ON CAMPUS THE CRIMINAL JUSTICE SYSTEM MAY OR MAY NOT PROSECUTE THE CASE FOR A VARIETY OF REASONS WHEN AND IF THEY DO PROSECUTE IT CAN TAKE MONTHS OR YEARS TO CONCLUDE WHEN A MEMBER OF THE CAMPUS COMMUNITY IS ALLEGEDLY RAPED BY ANOTHER MEMBER THE COMMUNITY SHOULD BE ALLOWED TO RESPOND TO THE ALLEGATIONS AND WHEN APPROPRIATE REMOVE A MEMBER FROM THE COMMUNITY OR OTHERWISE PREVENT CONTINUED DETRIMENTAL BEHAVIOR WHEN I WAS A STUDENT AT WAKE FOREST UNIVERSITY I WAS PHYSICALLY EJECTED FROM A PUBLIC MEETING OF A CAMPUS RADICAL BLACK ACTIVIST ORGANIZATION AFTER THE MEETING'S ORGANIZER RECOGNIZED ME AS THE EDITOR OF THE CONSERVATIVE STUDENT MAGAZINE WHEN I DEMANDED THAT THE WAKE FOREST ADMINISTRATION REPRIMAND THE STUDENT WHO PHYSICALLY ASSAULTED ME I RECEIVED IN RESPONSE NOT THE PROTECTION I DEMANDED NOR THE JUSTICE I DESERVED BUT WAS INSTEAD SUBJECTED TO A SERIES OF SEVEN CHARGES OF VIOLATING THE STUENT HONOR AND JUDICIAL CODE WHILE I WAS PILLORIED BY THE UNIVERSITY FOR HAVING DARED TO ATTEND A PUBLIC MEETING OF THIS GROUP THE MEETING'S ORGANIZER WAS NOT ONLY NOT PUNISHED FOR HAVING THROWN ME OUT BUT LAUDED BY THE UNIVERSITY FOR HIS ACTIONS TO MAINTAIN THE POLITICAL AND RACIAL PURITY OF HIS MEETING IT TOOK ME MORE THAN SEVEN MONTHS DURING WHICH MY ATTENTION WAS DIVERTED FROM SCHOOLWORK TO WITCH HUNT BUT EVENTUALLY I WAS EXONERATED ON EACH OF THE SEVEN SUCCESSIVELY FILED CHARGES AS I WAS CLEARED OF EACH CHARGE MORE WERE FILED ONE OF THE MOST SICKENING ASPECTS OF THIS ORDEAL WAS THE ATTEMPTS BY HIGHRANKING ADMINISTRATORS TO SWEEP THE MATTER UNDER THE RUG BY ENCOURAGING ME TO PLEAD GUILTY TO THE PREPOSTEROUS CHARGES AND ACCEPT SOME MINOR PUNISHMENT SHORT OF EXPULSION THE ADMINISTRATORS DID THIS MONTHS INTO THE ORDEAL WHEN THE REGIONAL PRESS BEGAN TO RAKE WAKE FOREST OVER THE COALS AND ALUMNI WERE COMPLAINING 9310200126 931020 MARKETING & MEDIA MALONE FIRES BACK CALLS HIS ATTACKERS DESPERATE' NEW YORK AFTER ENDURING PERSONAL AND LEGAL ATTACKS IN THE BATTLE FOR PARAMOUNT COMMUNICATIONS INC CABLE TELEVISION MOGUL JOHN C MALONE IS CALLING PARAMOUNT AND VIACOM INC EXECUTIVES DESPERATE SAYING HE MIGHT COUNTERSUE FOR DEFAMATION IN AN INTERVIEW IN THE TRADE MAGAZINE INSIDE MEDIA MR MALONE WHO IS BACKING A 97 BILLION OFFER FOR PARAMOUNT BY QVC NETWORK INC AND ITS CHAIRMAN BARRY DILLER SHARPLY REBUKED VIACOM'S CHAIRMAN SUMNER REDSTONE WHO INITIATED AN ANTITRUST LAWSUIT THAT PORTRAYS MR MALONE AS THE MASTERMIND OF A CONSPIRACY TO MONOPOLIZE CABLE TV VIACOM WHICH HAS AN AGREEMENT TO ACQUIRE PARAMOUNT FOR 79 BILLION IN CASH AND STOCK FILED THE LAWSUIT IN AN EFFORT TO THWART THE QVC OFFER SUMNER'S PROBLEM IS THAT HE'S LOOKING IN THE MIRROR AND ACCUSING US OF THE THINGS HE'S DOING DECLARED MR MALONE CHIEF EXECUTIVE OF CABLE GIANT TELECOMMUNICATIONS INC AND CHAIRMAN OF ITS SPINOFF LIBERTY MEDIA ATTACKING ME DRAGGING MY NAME INTO THE PRESS IS SOMETHING THAT I REALLY DISLIKE MR REDSTONE SAID THAT HE'S NEVER ENGAGED IN PERSONAL ATTACKS ON ANYONE AND THAT VIACOM WILL PROVE ALL OF THE ALLEGATIONS IN ITS LAWSUIT 9310200125 931020 LEISURE & ARTS BOOKSHELF TALES FROM THE EAST ATLANTIC BY MERLE RUBIN THE SUNDRY PROTAGONISTS OF STRANGE PILGRIMS TWELVE STORIES BY THE COLOMBIANBORN STORYTELLER AND NOBEL LAUREATE GABRIEL GARCIA MARQUEZ TRANSLATED BY EDITH GROSSMAN KNOPF 188 PAGES 21 ARE MEN AND WOMEN FROM LATIN AMERICA TEMPORARILY OR SOMETIMES PERMANENTLY TRANSPLANTED IN EUROPE SOME LIKE THE DEPOSED LEADER OF AN UNNAMED CARIBBEAN STATE IN BON VOYAGE MR PRESIDENT ARE EXILES SOME LIKE THE PRUDISH ELDERLY WIDOW IN SEVENTEEN POISONED ENGLISHMEN AND THE PIOUS ELDERLY WIDOWER IN THE SAINT ARE GENUINE PILGRIMS OTHERS LIKE THE PSYCHIC IN I SELL MY DREAMS AND THE SUCCESSFUL RETIRED PROSTITUTE MARIA DOS PRAZERES HAVE EMIGRATED FROM THE NEW WORLD TO THE OLD IN PURSUIT OF CAREER OPPORTUNITIES AND STILL OTHERS LIKE THE HONEYMOONING RICH KIDS FROM CARTEGENA IN THE TRAIL OF YOUR BLOOD IN THE SNOW ARE JUST VISITING UNAWARE OF THE WAYS IN WHICH A QUICK TRIP CAN TURN INTO A LIFEALTERING JOURNEY TO MANY OF THESE PILGRIMS WHO'VE VOYAGED EAST IN SEARCH OF THEIR CULTURAL ROOTS IT IS THE OLD WORLD THAT SEEMS BARBAROUS UNCIVILIZED AND UNCOUTH THE APTLY NAMED PRUDENCIA LINERO A STRAITLACED WIDOW FROM RIOHACHA SEEKING AN AUDIENCE WITH THE POPE DISEMBARKS IN NAPLES WHERE SHE IS SHOCKED BY BARECHESTED MEN ON MOTORBIKES AND THE GRUESOME SPECTACLE OF A CORPSE IN EVENING DRESS FLOATING IN THE FAMOUS BAY THE AGING COLOMBIAN MARGARITO DUARTE OF THE SAINT HAS SPENT MORE THAN TWO DECADES IN ROME TRYING TO CONVINCE A SUCCESSION OF POPES TO CANONIZE HIS DEAD DAUGHTER WHOSE MIRACULOUSLY UNCORRUPTED STILLWARM BODY HE CARRIES WITH HIM IN ITS COFFIN AS EVIDENCE OF HER HOLINESS WHILE THE PONTIFFS REMAIN BENIGNLY ALOOF A FAMOUS ITALIAN FILMMAKER IS INTRIGUED ON VIEWING THE LITTLE GIRL'S BODY HOWEVER HE CONCLUDES IT'S NO GOOD FOR THE MOVIES NOBODY WOULD BELIEVE IT AS MIGHT BE EXPECTED FROM THE MASTER OF MAGIC REALISM THE UNBELIEVABLE LOOMS LARGE IN MANY OF THESE STORIES THE UNCANNY HAPPENINGS RANGE FROM THE INEXPLICABLE TO THE EXPLAINEDBUTSTILLBIZARRE IN THE GHOSTS OF AUGUST THE AUTHOR AND HIS FAMILY VISIT VENEZUELAN WRITER MIGUEL OTERO SILVA WHO'S BOUGHT A HAUNTED TUSCAN CASTLE THE MARQUEZ CHILDREN ARE DYING TO MEET A GHOST ALTHOUGH THEIR PARENTS ARE REPRESENTED AS NONONSENSE RATIONALISTS WHAT THEY EXPERIENCE IS EVEN STRANGER THAN A GHOST IN A LIGHTER MORE PLAYFUL VEIN TWO LITTLE BOYS IN ANOTHER STORY MISCONSTRUING THE AUTHOR'S REMARK THAT LIGHT IS LIKE WATER TAKE THE FIGURE OF SPEECH LITERALLY IN A COMICALLY FANTASTIC TWIST THEY FLOOD THEIR PARENTS' APARTMENT WITH ENOUGH LIGHT TO FLOAT THE HOUSEHOLD FURNITURE IN TRAMONTANIA THE POWER OF THE FIERCE HOT CATALONIAN MOUNTAIN WIND MOCKED BY RATIONALISTS TAKES A FRIGHTFUL TOLL BUT WHETHER ITS AWESOME FORCE IS IN THE MIND OF THE BEHOLDER OR IN THE WIND ITSELF IS PRESENTED AS A DELIBERATELY OPEN QUESTION I WOULD LIKE ONCE TO READ A STORY IN WHICH SOME ALLEGEDLY PRIMITIVE SUPERSTITION IS REVEALED TO BE JUST THAT NOT ALL OF MR MARQUEZ'S BIZARRE EFFECTS DEPEND ON THE FANTASTIC OR THE SUPERNATURAL IN I ONLY CAME TO USE THE PHONE A YOUNG MEXICAN WOMAN WHOSE CAR BREAKS DOWN ON A DESERTED SPANISH ROAD HITCHES A RIDE TO AN INSTITUTION WHERE SHE'S TOLD SHE CAN FIND A PHONE TO CALL HER HUSBAND UNFORTUNATELY THE INSTITUTION IS A WOMEN'S INSANE ASYLUM WHERE SHE IS MISTAKEN FOR ONE OF THE INMATES AND AMONG OTHER THINGS DENIED PHONE PRIVILEGES THE SITUATION OF A SANE PERSON MISTAKEN FOR INSANE AND DEEMED EVEN CRAZIER FOR ATTEMPTING TO PROVE HER SANITY SUFFERS FROM OVERUSAGE BUT MR MARQUEZ MANAGES TO INJECT A CERTAIN BUOYANCY INTO HIS VERSION THE VERY DARKLY COMIC STORY MISS FORBES'S SUMMER OF HAPPINESS SET IN SICILY IS NARRATED IN THE FIRST PERSON BY A GROWN MAN RECALLING HOW HE AND HIS LITTLE BROTHER PLOTTED TO DO AWAY WITH THEIR DICTATORIAL GERMAN GOVERNESS THE STORY'S SHOCKING CONCLUSION BRILLIANTLY MINGLES THE OPPOSING EMOTIONS OF HORROR AND RELIEF THE MOST SURREAL AND PERHAPS MOST BEAUTIFUL OF THE STORIES THE TRAIL OF YOUR BLOOD IN THE SNOW FOLLOWS A PAIR OF COLOMBIAN NEWLYWEDS ON THE FIRST NIGHT OF THEIR EUROPEAN HONEYMOON SPOILED SWAGGERING BILLY AND HIS POISED CHARMING WIFE NENA ARE WILDLY IN LOVE AND EXQUISITELY HAPPY UNTIL THE BRIDE'S FINGER PIERCED BY A THORN IN HER BOUQUET BEGINS TO BLEED UNREMITTINGLY AND MYSTERIOUSLY THROUGHOUT THE LONG NOCTURNAL CAR TRIP FROM THE PYRENEES TO PARIS YET QUITE POSSIBLY THE MOST REMARKABLE AND MOVING FEATURE OF THIS GROUP OF STORIES IS ITS DEPICTION OF THE IMMENSE VITALITY THAT CAN STILL BE LATENT IN OLD AGE THE STRONGWILLED EXPROSTITUTE MARIA DOS PRAZERES STOICALLY PREPARING FOR HER OWN FUNERAL DISCOVERS THAT EVEN A WOMAN WHO HAS SEEN IT ALL CAN STILL BE SURPRISED BY WHAT LIFE HAS TO OFFER AND THE AILING DEPOSED HERO OF BON VOYAGE MR PRESIDENT SEEKING PEACE RETIREMENT AND MEDICAL TREATMENT IN GENEVA RECEIVES A NEW LEASE ON LIFE FROM UNEXPECTED SOURCES INCLUDING SOME INNER RESOURCES HE'D FORGOTTEN HE HAD AS IN HIS 1988 NOVEL LOVE IN THE TIME OF CHOLERA MARQUEZ MANAGES TO PERSUADE US THAT OLD AGE CAN BE A TIME OF GROWTH DESPITE DECAY WITH A CONCENTRATED DYNAMISM OF ITS OWN THAT IS NO LESS VITAL THAN THE EFFERVESCENT ENERGY OF YOUTH 9310200124 931020 ENTERPRISE SBA'S TROUBLED 8A PROGRAM MAY SOON GET MAKEOVER CONCERN GROWS THAT EARLIER REFORMS DIDN'T WORK AGENCY SEEKS ADVICE BY JOHN R EMSHWILLER AND JEANNE SADDLER STAFF REPORTERS OF THE WALL STREET JOURNAL A MULTIBILLIONDOLLAR FEDERAL CONTRACTING PROGRAM THAT PEOPLE SEEM TO LOVE TO HATE IS UP FOR ANOTHER FACELIFT THE SMALL BUSINESS ADMINISTRATION'S SOCALLED 8A PROGRAM HAS BEEN AROUND FOR NEARLY A QUARTER CENTURY AIMING TO HELP MINORITYOWNED BUSINESSES DEVELOP BY GETTING A FAIR SHARE OF FEDERAL CONTRACTING DOLLARS THE PROGRAM DISPENSES OVER 4 BILLION ANNUALLY IN SUCH CONTRACTS THOUGH THE PROGRAM HAS HELPED PRODUCE SOME NOTABLE BUSINESS SUCCESSES IT HAS ALSO BEEN DOGGED BY CONTROVERSY AND CRITICISM CONCERNING PROBLEMS RANGING FROM CONTRACTOR FRAUD TO BUREAUCRATIC INEPTITUDE IN ITS LIFETIME THE 8A PROGRAM HAS GONE THROUGH A NUMBER OF MAJOR REFORMS THE MOST RECENT OCCURRED ABOUT FIVE YEARS AGO IN THE WAKE OF THE WEDTECH CORP CONTRACTING SCANDAL WEDTECH A NEW YORK DEFENSE CONTRACTOR THAT BENEFITED FROM THE 8A PROGRAM AND HAD LINKS TO PROMINENT NATIONAL FIGURES WAS BROUGHT DOWN BY ALLEGATIONS OF FRAUD AND CRIMINAL ACTIVITY IN 1986 THE SUBSEQUENT OVERHAUL INTRODUCED COMPETITIVE BIDDING INTO THE PROGRAM STREAMLINED THE APPLICATION AND REVIEW PROCESS MODIFIED ELIGIBILITY REQUIREMENTS INCREASED PENALTIES FOR COMPANIES MISREPRESENTING THEIR QUALIFICATIONS AND ENCOURAGED PARTICIPANTS TO EXPAND THEIR NON8A BUSINESS NOW AGREEMENT IS GROWING THAT THOSE MOVES DIDN'T WORK AND THAT YET ANOTHER EFFORT IS NECESSARY TO MAKE THE PROGRAM MORE VIABLE ERSKINE BOWLES THE NEW SBA ADMINISTRATOR HAS PUBLICLY CALLED THE 8A PROGRAM A MESS AND PROMISED TO PRESENT A PROPOSED OVERHAUL TO CONGRESS EARLY NEXT YEAR THOUGH MR BOWLES SAYS HE CAN'T YET GIVE SPECIFICS ON WHAT CHANGES HE WOULD LIKE TO SEE HE SEEMS OPEN TO THE IDEA OF RADICAL SURGERY WE WON'T BE LOOKING AT THE PROGRAM WITHIN ITS CURRENT WALLS AND STRUCTURES SAYS MR BOWLES JUST LAST FRIDAY MR BOWLES CONVENED A MEETING WITH ABOUT TWO DOZEN SMALLBUSINESS OWNERS AND GOVERNMENT OFFICIALS TO SOLICIT IDEAS ON HOW TO REFORM THE 8A PROGRAM MORE SUCH MEETINGS ARE PLANNED SBA OFFICIALS SAY THERE SEEMS TO BE NO SHORTAGE OF PEOPLE WITH IDEAS ON HOW TO FIX THE PROGRAM INDEED IF ANYTHING MR BOWLES WILL PROBABLY HAVE TO SORT THROUGH A THICKET OF SOMETIMES CONFLICTING RECOMMENDATIONS ALREADY SOME IN THE MINORITYBUSINESS COMMUNITY ARE LOBBYING FOR LIGHTER REGULATION EVEN AS SOME SBA OFFICIALS PUSH FOR INCREASED OVERSIGHT A BILL TO REFORM THE 8A PROGRAM WHICH IS NAMED FOR A SECTION OF THE 1953 SMALL BUSINESS ACT HAS BEEN INTRODUCED IN THE HOUSE BY TWO DEMOCRATS REP BILL RICHARDSON OF NEW MEXICO AND CONGRESSIONAL BLACK CAUCUS LEADER KWEISI MFUME OF MARYLAND AMONG OTHER THINGS IT WOULD DO AWAY WITH ONE MAJOR CHANGE FROM THE 1988 REFORM A REQUIREMENT THAT LARGER 8A CONTRACTS BE AWARDED THROUGH COMPETITIVE BIDDING AMONG PROGRAM PARTICIPANTS THE BILL WOULD ONCE AGAIN ALLOW SUCH CONTRACTS TO BE AWARDED WITHOUT COMPETITIVE BIDDING COMPETITIVE BIDDING WAS SUPPOSED TO HELP ENSURE THAT THE GOVERNMENT GOT THE BEST PRICE AND ALSO TO PUSH PROGRAM PARTICIPANTS INTO BEING MORE EFFICIENT AND COSTCONSCIOUS BUT CRITICS SAY THE LENGTHY TIME NEEDED TO FULFILL ALL THE REQUIREMENTS OF COMPETITIVE BIDDING WAS A MAJOR SOURCE OF FRUSTRATION FOR BOTH THE GOVERNMENT AGENCIES AWARDING THE CONTRACTS AND THE MINORITY CONCERNS TRYING TO GET THEM AS A RESULT THE PRACTICE DIMINISHED THE PROGRAM'S ATTRACTIVENESS TO BOTH SIDES THEY SAY BEFORE THE COMPETITIVEBIDDING RULE WAS INSTITUTED I COULD GET A CONTRACT WITHIN 30 DAYS NOW IT CAN TAKE OVER A YEAR SAYS CLEMON H WESLEY PRESIDENT AND OWNER OF TEXCOM INC A TELECOMMUNICATIONS COMPANY IN LANDOVER MD AND AN 8A PARTICIPANT MANY SEEKING AN OVERHAUL OF THE 8A PROGRAM ARE FOCUSING ON WAYS TO REDUCE BUREAUCRATIC DELAY AND RED TAPE MR BOWLES AND OTHERS HAVE CRITICIZED THE PROGRAM'S CERTIFICATION PROCESS AS CUMBERSOME AND TIMECONSUMING THOUGH CONGRESS HAS MANDATED THAT ALL COMPLETED APPLICATIONS BE ACTED UPON WITHIN 90 DAYS A RECENT STUDY BY THE GENERAL ACCOUNTING OFFICE FOUND THAT ON AVERAGE THE SBA WAS TAKING NEARLY TWICE THAT LONG CURRENTLY OVER 4000 COMPANIES TAKE PART IN THE 8A PROGRAM CRITICS ALSO SAY THE PROCEDURES ARE A DRAIN ON THE SBA STAFF WHICH IN THEIR VIEW COULD BE MORE PRODUCTIVELY USED AT SUCH TASKS AS HELPING MINORITY BUSINESSES GROW THE SBA HAS TO MAKE IT EASIER TO CERTIFY AND THEN GIVE MORE HELP TO COMPANIES TRYING TO GET CONTRACTS SAYS WELDON LATHAM A WASHINGTON ATTORNEY AND GENERAL COUNSEL OF THE NATIONAL ASSOCIATION OF MINORITY BUSINESS BUT SOME PEOPLE IN THE AGENCY WORRY THAT ANY SCALING BACK OF ITS OVERSIGHT WOULD INCREASE THE RISK OF FRAUD IN THE PAST SIX YEARS SEVEN SBA OFFICIALS AROUND THE COUNTRY HAVE BEEN CONVICTED OF VARIOUS MISDEEDS USUALLY SOLICITING OR ACCEPTING BRIBES FROM 8A CONTRACTORS ACCORDING TO AGENCY RECORDS AN EIGHTH SBA OFFICIAL MERCEDES SHETTER WAS RECENTLY INDICTED IN FEDERAL COURT IN SAN DIEGO AND CHARGED WITH ACCEPTING CONTRACTOR GRATUITIES RANGING FROM A DECK ON HER HOUSE TO A TRIP TO LAS VEGAS MS SHETTER HAS PLEADED NOT GUILTY AND HER TRIAL IS SCHEDULED FOR NEXT MONTH SOME SBA OFFICIALS ATTRIBUTE THE CRIMINAL ABUSES IN PART TO THE WIDE LATITUDE THAT 8A CONTRACTING OFFICERS IN THE FIELD HAVE IN DIRECTING BUSINESS TO PARTICIPATING CONCERNS THESE OFFICIALS BELIEVE THAT AS PART OF THE PLANNED REFORMS THE FIELD OFFICERS SHOULD BE GIVEN LESS CONTRACTING AUTHORITY AND SHOULD BE SUBJECTED TO MORE OVERSIGHT FROM WASHINGTON REFORMERS ARE ALSO LOOKING AT WAYS TO REDUCE THE ESTIMATED 40 FAILURE RATE OF COMPANIES AFTER THEY GRADUATE FROM THE 8A PROGRAM ONE IDEA PUT FORTH BY SOME PEOPLE IN THE MINORITYBUSINESS COMMUNITY IS TO CREATE A SORT OF POSTGRADUATE PROGRAM TO HELP MINORITY COMPANIES AFTER THEY ARE NO LONGER ELIGIBLE FOR 8A STATUS CURRENTLY A COMPANY CAN STAY IN THE 8A PROGRAM FOR AS LONG AS NINE YEARS THOUGH SOME THINK THE CURRENT ELIGIBILITY PERIOD IS ALREADY FAR TOO LONG MR LATHAM THE WASHINGTON ATTORNEY ISN'T ONE OF THEM EVEN AFTER NINE YEARS IF YOU ARE A MINORITYOWNED AND UNDERCAPITALIZED FIRM YOU ARE UNDER A GREAT HANDICAP HE SAYS 9310200123 931020 WHO'S NEWS SUMMIT BANCSHARES INC SUMMIT BANCSHARES INC FORT WORTH TEXAS PHILIP NORWOOD 44 YEARS OLD WAS ELECTED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS BANK HOLDING COMPANY HE SUCCEEDS FS BEN GUNN 60 WHO WAS ELECTED VICE CHAIRMAN AND WILL CONTINUE AS CHAIRMAN OF SUMMIT NATIONAL BANK ONE OF THE THREE BANKS OWNED BY THE COMPANY JEFFREY M HARP 45 WAS NAMED CHIEF OPERATING OFFICER OF THE HOLDING COMPANY HE SUCCEEDS MR NORWOOD IN THAT CAPACITY 9310200122 931020 MARKETING & MEDIA PHILIP MORRIS NET DROPPED BY 25 IN THIRD QUARTER BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PHILIP MORRIS COS' THIRDQUARTER PROFIT FELL 25 THE RESULT OF THE COMPANY'S COSTLY DECISION TO CUT US CIGARETTE PRICES THE COMPANY SAID FOURTHQUARTER PROFIT ALSO WOULD BE DOWN THE PROFIT FORECAST ALONG WITH COMMENTS BY PHILIP MORRIS'S CHAIRMAN THAT THE CIGARETTE MARKET REMAINS VOLATILE AND DIFFICULT SENT THE COMPANY'S STOCK DOWN 1125 TO 5275 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FOR THE THIRD QUARTER PHILIP MORRIS REPORTED NET INCOME OF 971 MILLION OR 111 A SHARE COMPARED WITH 129 BILLION OR 144 A SHARE A YEAR AGO THE COMPANY SAID THE NEW FEDERAL INCOMETAX LAW COST IT FOUR CENTS A SHARE IN THE QUARTER REVENUE AT THE FOOD AND CIGARETTE COMPANY INCHED UP 14 TO 152 BILLION FROM 15 BILLION LAST YEAR PHILIP MORRIS'S STOCK HAD RISEN 14 IN THE PAST TWO WEEKS BUT IN A PREPARED STATEMENT YESTERDAY MICHAEL A MILES CHAIRMAN AND CHIEF EXECUTIVE OF PHILIP MORRIS COOLED THE RENEWED ARDOR FOR THE COMPANY'S SHARES OUR LOWER US CIGARETTE PRICING AND CONTINUED VOLATILE AND DIFFICULT MARKET CONDITIONS WILL MAKE OUR FOURTHQUARTER COMPARISONS UNFAVORABLE SAID MR MILES ANALYSTS HAD BEEN EXPECTING A FOURTHQUARTER PROFIT DECLINE BUT THE SOMBER TONE OF THE COMMENTS OF MR MILES MADE SOME INVESTORS JITTERY S LEIGH FERST AN ANALYST AT PRUDENTIAL SECURITIES INC SAID HE WAS TRYING TO SIGNAL DON'T GET TOO EXCITED' CLEARLY THE PROBLEMS ARE NOT OVER EVEN IF THE WORST IS OVER ANALYSTS ALSO ATTRIBUTED THE FALL IN THE STOCK PRICE TO PROFITTAKING PHILIP MORRIS RELEASED FIGURES TO DEMONSTRATE THAT ITS PRICECUTTING PROGRAM HAD WOOED SMOKERS BACK TO PREMIUMBRAND CIGARETTES IN APRIL PHILIP MORRIS SAID IT WAS CUTTING THE PRICE OF ITS PREMIUM BRANDS BY 40 CENTS A PACK TO BATTLE THE SURGING POPULARITY OF DISCOUNT CIGARETTES CITING AC NIELSEN DATA PHILIP MORRIS SAID THAT THE DISCOUNT CATEGORY HAD DROPPED TO UNDER 35 OF THE DOMESTIC CIGARETTE MARKET FROM NEARLY 40 EARLIER IN THE YEAR THE COMPANY SAID MARLBORO'S SHARE OF THE US PREMIUM CATEGORY REACHED 51 UP 23 SHARE POINTS FROM A YEAR AGO MARLBORO'S SHARE OF THE TOTAL US MARKET WAS NEARLY 257 UP 17 SHARE POINTS VERSUS THE 1992 THIRD QUARTER 9310200121 931020 LEISURE & ARTS THEATER HISTORIC SEXCHANGE OPERATION BY SEINE BY FARAH NAYERI PARIS I HAVE SEEN NOTHING MORE BEAUTIFUL IN THIS WORLD SINCE THE DAY I WAS BORN WROTE THE LATE FRENCH POET LOUIS ARAGON AFTER WATCHING BOB WILSON'S DEAFMAN'S GLANCE THAT WAS IN 1971 SOME 20 YEARS LATER MR WILSON IS BACK WITH A STAGE ADAPTATION OF VIRGINIA WOOLF'S ORLANDO AND ONCE AGAIN HE HAS THE FRENCH IN RAPTURE THE SHOW WHICH KICKED OFF PARIS'S FALL FESTIVAL OF THEATER AND DANCE LE FESTIVAL D'AUTOMNE HAS BEEN A SELLOUT AT THE ODEON THEATER AND IS ALREADY SET TO BE PERFORMED AGAIN IN JULY ORLANDO RECOUNTS THE SPIRITUAL AND CARNAL ADVENTURES OF A HERO WHO HALFWAY THROUGH THE BOOK TURNS INTO A HEROINE AND WHOSE LIFE SPANS FOUR EVENTFUL CENTURIES ENDING WITH THIS ONE WOOLF'S INSPIRATION FOR THE BOOK WAS HER LOVER VITA SACKVILLEWEST AN ARISTOCRATIC ECCENTRIC GARDENING WRITER AND WIFE OF THE DIPLOMAT AND WRITER HAROLD NICOLSON FANTASY IS ALTOGETHER ABSENT FROM THE STAGE VERSION OF THIS DOTTY HISTORICAL FANTASY YET THE RESULT IS DOWNRIGHT STUNNING RATHER THAN DWELL ON THE SPLENDOR SO VIVIDLY DESCRIBED IN THE NOVEL MR WILSON HAS STRIPPED ORLANDO DOWN TO ITS ESSENTIALS AND PRODUCED A MASTERPIECE OF MINIMALIST THEATER STARK LIGHTING OMINOUS SYNTHESIZER HUMS AND A SUCCESSION OF SHIFTING RECTANGULAR SETS ARE VIRTUALLY ALL THAT MR WILSON ALLOWS IN THE WAY OF STAGE GIMMICKRY COSTUMES ARE LESS THAN ELABORATE STYLIZED JUST ENOUGH TO SUGGEST THE PERIOD IN WHICH THEY WERE WORN EVEN THE TEXT IS MASTERFULLY REDUCED TO ITS MOST SIGNIFICANT PASSAGES SOMEHOW MR WILSON'S NOFRILLS APPROACH MANAGES TO CAPTURE THE VERY ESSENCE OF THE NOVEL AN EXPRESSION OF MAN'S PERPETUALLY FRUSTRATED QUEST FOR HAPPINESS THE DIRECTOR'S BARE STYLE IS IN MORE WAYS THAN ONE REMINISCENT OF KABUKI THEATER ACTRESS ISABELLE HUPPERT HER FACE CAKED WITH THICK WHITE POWDER IS MADE TO EXECUTE A BALLET OF SLICING HAND MOVEMENTS THAT SERVE TO PUNCTUATE HER LINES SHE MOVES ACROSS THE STAGE IN SLOW MOTION AS IF IN DEEP SLUMBER HER SYLLABLES ARE OFTEN DRAWN OUT INTERMINABLY NEARLY TO HYPNOTIC EFFECT SCARCELY ANYONE COULD HAVE CARRIED OUT SUCH COMPLEX INSTRUCTIONS WITH GREATER EASE AS THE LONE THESPIAN ON STAGE MS HUPPERT IS TRULY EXCEPTIONAL EVER FAITHFUL TO THE WILSONIAN SPIRIT HER SOULFUL DELIVERY OF THE BEAUTIFUL THOUGH UNWIELDY TRANSLATION IS THE PIVOTAL FEATURE OF THE PERFORMANCE SHE EVEN MANAGES TO PROVIDE RARE INSTANCES OF COMIC RELIEF WITHOUT BREAKING THE PLAY'S OTHERWISE AUSTERE RHYTHM MR WILSON IS NOT WITHOUT HUMOR EITHER HIS STAGE ACCESSORIES ARE SOMETIMES SO SURREAL THAT THE AUDIENCE CANNOT HELP BUT LAUGH ORLANDO'S OBSEQUIOUS SUITOR THE ARCHDUKE IS DEPICTED AS A TINY DOOR SPROUTING FROM CENTERSTAGE THAT OPENS AND SHUTS WHEN SPOKEN TO ANOTHER CROWDPLEASING MOMENT OCCURS AFTER ORLANDO'S SWITCH FROM MAN TO WOMAN WHEN SHE EXAMINES THE OPTIONS OPEN TO HER AND SHRUGS NOW ALL I CAN DO IS TO POUR OUT TEA TRUE TO WOOLF'S INTENTIONS MR WILSON HERE DENOUNCES THE CONSTRAINTS OF WOMANHOOD AT THE TIME WHERE MR WILSON IS DELIBERATELY UNFAITHFUL TO THE WOOLF ORIGINAL IS BY IGNORING THE PROTAGONIST'S UNDERLYING HOMOSEXUALITY SAPPHISM IS TO BE SUGGESTED WOOLF NOTED IN HER DIARY AS SHE SAT DOWN TO WRITE THE BOOK IN THE WILSON VERSION IT ISN'T LINES SUCH AS ORLANDO PROFESSED GREAT ENJOYMENT IN THE SOCIETY OF HER OWN SEX ARE ALTOGETHER ABSENT FROM THE THEATRICAL ADAPTATION AS ARE REFERENCES TO THE FEMALE ORLANDO'S NIGHTLY JAUNTS IN SEARCH OF THE COMPANY OF THE SAME SEX ONE WONDERS WHY MR WILSON HAS CHOSEN TO SKIRT THIS SIGNIFICANT FEATURE OF THE NOVEL PERHAPS AS WOOLF HERSELF MIGHT HAVE SAID THE SPIRIT OF THE AGE IS SUCH THAT EVEN TODAY ALLUSIONS TO LESBIANISM ARE NOT TOLERATED OR MORE LIKELY MR WILSON CHOSE TO PORTRAY ORLANDO AS A HERO OF UNIVERSAL SIGNIFICANCE RATHER THAN DWELL ON THE PARTICULARS OF HIS/HER SEXUAL IDENTITY IN ANY EVENT THE TEXASBORN DIRECTOR HAS YET AGAIN CONQUERED THE HEARTS AND MINDS OF THE FRENCH AFTER ALL IT WAS JACK LANG WHO AS DIRECTOR OF THE NANCY THEATER FESTIVAL AT THE TIME GAVE MR WILSON THE OPPORTUNITY TO PRESENT DEAFMAN'S GLANCE THE SILENT SEVENHOUR PRODUCTION THAT SO ENTRANCED ARAGON AND BECAME MR WILSON'S FIRST BIG SUCCESS OVER THE YEARS MR WILSON HAS DEVELOPED SOMETHING OF A CULT FOLLOWING HERE THANKS TO CRITICAL HITS SUCH AS EINSTEIN ON THE BEACH AN OPERA CREATED WITH PHILIP GLASS DEATH DESTRUCTION AND DETROIT INSPIRED BY THE CAPTIVITY OF THE NAZI LEADER RUDOLF HESS AND THE MAGIC FLUTE WHICH HE STAGED IN TYPICALLY UNCONVENTIONAL FASHION RAISING AN EYEBROW OR TWO IN THE OPERAGOING CROWD HE IS DUE NEXT TO STAGE A PRODUCTION OF MADAME BUTTERFLY AT THE BASTILLE OPERA MR WILSON'S REMARKABLE READING OF ORLANDO CONTRASTS SHARPLY WITH THE CURRENT SCREEN VERSION BY BRITISH DIRECTOR SALLY POTTER NOW SHOWING AROUND PARIS THE FILM TOO TURNS A BLIND EYE TO WOOLF'S HOMOSEXUAL INNUENDOES BUT THAT IS THE LEAST OF ITS FLAWS DESPITE THE COMMENDABLE EFFORTS OF ACTRESS TILDA SWINTON THE FILM IS A STILTED GOODYGOODY VISION OF A SUBVERSIVE PIECE OF LITERATURE ENORMOUS EFFORT HAS GONE INTO THE ELABORATE COSTUMES AND ORNATE DECOR BUT THIS FAILS TO REDEEM THE FREQUENTLY POOR CHOICE OF ACTORS AND MS POTTER'S SHAMEFUL HABIT OF HAVING MS SWINTON DELIVER KEY LINES WHILE PEERING MEANINGFULLY INTO THE CAMERA CAMEO APPEARANCES BY SINGER JIMMY SOMMERVILLE NOTABLY AS A WINGED ANGEL IN THE CLOSING SHOT ADD INSULT TO INJURY IF NOTHING ELSE THE FILM SERVES TO HIGHLIGHT THE OUTSTANDING QUALITY OF ITS THEATRICAL COUNTERPART MS NAYERI IS A FREELANCE WRITER BASED IN PARIS