HERE IS THE DUBIOUS PROPOSITION OF THE WEEK THE CLINTON ADMINISTRATION HAS BOTCHED THE CONDUCT OF FOREIGN POLICY SO CONGRESS IS GOING TO STEP IN AND CLEAN THINGS UP THIS IS A FARFETCHED NOTION AT BEST OF ALL THE THINGS CONGRESS DOESN'T DO WELL IT CONDUCTS FOREIGN POLICY LEAST WELL OF ALL YET THAT IS EXACTLY WHAT IT IS TRYING TO DO IN REACTION TO PRESIDENT CLINTON'S FOULUPS IN SOMALIA AND HAITI LAWMAKERS INCLUDING MANY WHO NORMALLY CLUCK THEIR TONGUES AT MICROMANAGEMENT OF FOREIGN POLICY ARE SCURRYING ABOUT WITH AMENDMENTS TO FORCE WITHDRAWAL OF TROOPS FROM SOMALIA HEAD OFF DEPLOYMENTS IN HAITI AND SET TERMS FOR INVOLVEMENT IN BOSNIA THE PRESIDENT HAS NOBODY BUT HIMSELF TO BLAME CONGRESS THOUGH ISN'T PARTICULARLY ADEPT AT SOLVING ANY PRESIDENT'S NATIONALSECURITY PROBLEMS THE WEAPONS AT ITS DISPOSAL FUNDING RESTRICTIONS CONDITIONS ON MILITARY ACTION AND CUTOFF DATES ARE SLEDGEHAMMERS IN A BUSINESS WHERE SCALPELS ARE MORE APPROPRIATE CONGRESSIONAL ACTIVISM COULD BE PARTICULARLY UNPRODUCTIVE RIGHT NOW WHEN LAWMAKERS ARE TEMPTED BY THE ISOLATIONIST AND PROTECTIONIST PASSIONS OF THE DAY JUSTIFIABLY ENOUGH THE RAP ON THE CLINTON ADMINISTRATION IS THAT IT HAS BEEN INDECISIVE INCONSISTENT AND UNABLE TO FORGE A NATIONAL CONSENSUS BUT IS CONGRESS REALLY CAPABLE OF DECISIVE AND CONSISTENT THINKING RIGHT NOW SEN JOHN WARNER A VIRGINIA REPUBLICAN RECALLS MEETINGS WITH THE PRESIDENT JUST SIX MONTHS AGO IN WHICH LEADING MEMBERS OF CONGRESS WERE CRYING OUT FOR THE US TO GET MORE INVOLVED IN STOPPING THE FIGHTING IN BOSNIA THESE VOICES OF COURSE COME FROM THE SAME CONGRESS NOW MANEUVERING TO KEEP THE US OUT OF BOSNIA AND HAITI AND TO GET IT OUT OF SOMALIA THE PENDULUM IS SWINGING RIGHT NOW AND CONGRESS IS TRYING TO GRAB THAT PENDULUM SAYS SEN WARNER A GUARDIAN OF PRESIDENTIAL POWER BUT EVEN HE CAN'T RESIST HE INTENDS TO COSPONSOR A RESOLUTION RESTRICTING USE OF TROOPS IN HAITI WITHOUT CONGRESSIONAL APPROVAL THE CLINTON ADMINISTRATION AND CONGRESSIONAL LEADERS WILL UNDOUBTEDLY FIND WAYS TO COMPROMISE THROUGH THE CURRENT SPATE OF CHALLENGES TO THE PRESIDENT'S FOREIGNPOLICY POWERS JUST YESTERDAY LAWMAKERS AND ADMINISTRATION AIDES WERE DISCUSSING WAYS TO WATER DOWN AMENDMENTS REQUIRING ADVANCE APPROVAL OF OPERATIONS IN HAITI OR HOT SPOTS WHERE US TROOPS WOULD BE UNDER UNITED NATIONS COMMAND BUT CONGRESS NOW IS IN THE FOREIGNPOLICY GAME AND WILL STAY FOR A WHILE MR CLINTON HELPED MAKE THAT HAPPEN HE ESSENTIALLY INVITED CONGRESS TO BE COEQUAL IN DECIDING WHETHER TO JOIN A FUTURE PEACEKEEPING FORCE IN BOSNIA THEN WHEN COLD FEET STARTED TO SET IN HE SEEMED EAGER TO LET CONGRESS GET HIM OFF THE HOOK AS THE NEW REPUBLIC MAGAZINE NOTES MR CLINTON MANAGED DURING A FIVEMINUTE NEWS CONFERENCE IN SEPTEMBER TO MENTION FOUR TIMES HIS INTENTION TO GET CONGRESSIONAL APPROVAL BEFORE INTERVENING IN BOSNIA SUBSEQUENTLY THE PRESIDENT LOST LAWMAKERS' CONFIDENCE BY LETTING HIS GOALS IN SOMALIA SHIFT THEN GIVING TROOPS THERE INADEQUATE SUPPORT HIS RESPONSE TO THE COLLAPSE OF AN AGREEMENT TO RETURN PRESIDENT JEANBERTRAND ARISTIDE TO POWER IN HAITI WAS REASONABLE BUT BY THEN LAWMAKERS WERE JUSTIFIABLY UPSET OVER THE ADMINISTRATION'S REPEATED FAILURE TO PROVIDE BRIEFINGS THAT CLEARLY EXPLAINED ADMINISTRATION POLICIES THERE IS NO DISPUTE THAT CONGRESS HAS A ROLE IT SHOULD HELP SET THE BROAD GOALS OF US SECURITY POLICIES GIVE THE PRESIDENT BADLY NEEDED READINGS ON THE COUNTRY'S SENTIMENT AND AS THE CONSTITUTION PROVIDES HAVE THE FINAL SAY ON THOSE FEW OCCASIONS WHEN ALLOUT WAR BECKONS BUT IN GRAYER AREAS WHERE MOST FOREIGNPOLICY PROBLEMS OF THE NEW WORLD ORDER FALL CONGRESS HAS HAD TROUBLE THE 1973 ATTEMPT TO DEFINE ITS ROLE THE WAR POWERS ACT HAS FAILED IT REQUIRES CONGRESS TO APPROVE THE DEPLOYMENT OF TROOPS COMMITTED FOR MORE THAN 60 DAYS IN AN AREA OF HOSTILITIES BUT IN REALITY NO PRESIDENT WANTS TO TRIGGER THE ACT AND CONGRESS OFTEN DOESN'T WANT THE RESPONSIBILITY OF VOTING REP LEE HAMILTON AN INDIANA DEMOCRAT WHO HEADS THE HOUSE FOREIGN AFFAIRS COMMITTEE IS TOYING WITH A DIFFERENT APPROACH HE SUGGESTS ESTABLISHING A STANDING CONSULTATIVE GROUP OF HOUSE AND SENATE LEADERS WHO WOULD MEET REGULARLY WITH THE PRESIDENT TO ADVISE ON NATIONALSECURITY ISSUES ESPECIALLY TROOP DEPLOYMENTS THAT MIGHT WELL BE AN IMPROVEMENT OVER THE CURRENT HAPHAZARD ROLE CONGRESS PLAYS THE AVERAGE CITIZEN SHUDDERS AT THE THOUGHT OF A KNOCK AT THE DOOR AND THE CALL I'M FROM THE GOVERNMENT AND I'M HERE TO HELP YOU BUT THE AVERAGE PRESIDENT SHUDDERS AT THE THOUGHT OF SOMEONE KNOCKING AND ANNOUNCING I'M FROM THE CONGRESS AND I'M HERE TO HELP YOU MAKE FOREIGN POLICY FOR NOW MR CLINTON'S ONLY OPTION IS FIND A WAY TO INVITE IN HIS CONGRESSIONAL VISITORS BEFORE THEY FEEL THE NEED TO KNOCK 9310200119 931020 CARNEGIE MELLON SAYS PENTAGON IS EXAMINING SCHOOL'S USE OF FUNDS PITTSBURGH CARNEGIE MELLON UNIVERSITY SAID THE DEFENSE DEPARTMENT IS CONDUCTING A CIVIL AND CRIMINAL INVESTIGATION OF THE UNIVERSITY'S USE OF PENTAGON CONTRACTS SUBCONTRACTS AND GRANTS PENTAGONFUNDED RESEARCH TOTALED 645 MILLION IN CARNEGIE MELLON'S 19921993 FISCAL YEAR OR ALMOST HALF THE UNIVERSITY'S TOTAL SPONSOREDRESEARCH BUDGET OF 1467 MILLION THE UNIVERSITY'S PRESIDENT ROBERT MEHRABIAN SAID CARNEGIE MELLON IS REGULARLY AUDITED BY GOVERNMENT PERSONNEL AS WELL AS INDEPENDENT EXTERNAL AUDITORS WE BELIEVE OUR PROCEDURES RELATED TO DEFENSE DEPARTMENT CONTRACTS ARE SOUND 9310200118 931020 LOAN DEMAND WILL REMAIN SLUGGISH EVEN IF ECONOMY IMPROVES SURVEYS SAY BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL WEAK LOAN DEMAND AT BANKS WILL CONTINUE EVEN IF THE ECONOMY PICKS UP TWO SURVEYS SUGGEST NINETY OF THE 100 CORPORATE TREASURERS AND ECONOMISTS INTERVIEWED BY PRUDENTIAL SECURITIES INC IN RECENT MONTHS INDICATED THAT FUNDAMENTAL CHANGES IN CORPORATE FINANCING POLICIES AND NOT THE SLOW PACE OF THE ECONOMY ARE RESPONSIBLE FOR THEIR COMPANIES' RELUCTANCE TO BORROW FROM BANKS THE POLICY CHANGES INCLUDE A DRIVE BY CORPORATIONS TO REDUCE DEBT AND GREATER USE BY MEDIUMSIZE COMPANIES OF NONBANK BORROWING SUCH AS LEASES PRIVATE PLACEMENTS OF DEBT AND SALES OF CORPORATE SECURITIES IN THE BOND AND COMMERCIAL PAPER MARKETS FOR BANKS IT MEANS TOTAL LOAN GROWTH WILL BE TOUGH WITH ONE OF THE MAIN ENGINES VIRTUALLY SHUT DOWN SAYS GEORGE SALEM A PRUDENTIAL BANKING ANALYST AND AUTHOR OF THE FIRM'S SURVEY REPORT AND FOR OTHERS INCLUDING ECONOMISTS IT MEANS COMMERCIAL LOAN AGGREGATES ARE A BROKEN BAROMETER FOR MEASURING HOW THE ECONOMY IS DOING HE ADDS COMMERCIAL AND INDUSTRIAL LOANS AT US COMMERCIAL BANKS PEAKED AT ABOUT 645 BILLION IN JANUARY 1991 IN MIDSEPTEMBER THESE LOANS TOTALED ABOUT 585 BILLION DOWN FROM NEARLY 600 BILLION IN THE SECOND QUARTER MR SALEM ESTIMATES THAT BUSINESS LOANS THIS YEAR WOULD BE UP 6 INSTEAD OF BEING OFF 3 WERE IT NOT FOR THE CHANGES IN THE CROWING POLICIES MR SALEM FORECASTS THAT BUSINESS LOANS WILL GROW NO MORE THAN 5 THROUGH THE END OF NEXT YEAR EVEN IF ECONOMIC GROWTH INCLUDING INFLATION IS UP 7 MEANWHILE MORE BANKS ARE BEING LEFT OUT AS COMPANIES CONCENTRATE WHAT BANKING BUSINESS THEY DO WITH FEWER INSTITUTIONS GREENWICH ASSOCIATES FOUND THE GREENWICH CONN CONSULTING FIRM'S ANNUAL SURVEY OF MORE THAN 1100 LARGE CORPORATIONS SHOWS THAT ON AVERAGE THESE COMPANIES CUT THE NUMBER OF BANKS THEY USED FOR BANKING SERVICES TO 154 DOWN FROM 168 LAST YEAR AND MORE THAN 20 IN THE LATE 1980S MORE COMPANIES 39 INDICATED THEY PLAN TO DROP BANKS IN THE FUTURE WHILE 36 SAID THEY WILL ADD BANKS SUCH TRENDS ARE LIKELY TO SPUR THE CONSOLIDATION IN THE BANKING INDUSTRY ANALYSTS SAY ASKED THE NUMBER OF CORE PROVIDERS OF BANKING SERVICES THE COMPANIES LISTED 68 BANKS ON AVERAGE DOWN FROM 74 IN 1992 COMPANIES' NEED FOR STRONGER RELATIONSHIPS WITH KEY BANKS HAS GONE UP SAYS ALLAN MUNRO A PRINCIPAL WITH GREENWICH ASSOCIATES COMPANIES NOW AWARD THOSE BANKS 55 OF THEIR BUSINESS UP FROM 50 IN PAST YEARS HE ADDED QUALEX CORP IS ONE OF THE COMPANIES TURNING TO NONBANKS FOR FINANCING IT MIGHT HAVE DONE WITH A BANK IN THE PAST THE DURHAM NC WHOLESALE PHOTO FINISHER SELLS SECURITIES IN PRIVATE PLACEMENTS TO INSURANCE COMPANIES IT ALSO TURNS TO FINANCE COMPANIES FOR LEASE FINANCING OF EQUIPMENT BANK DEBT IS NOW THE LAST RESORT FOR SHORTTERM FINANCING INSTEAD OF THE FIRST SAYS EUGENE HALEY QUALEX'S TREASURER WHO NOTES THAT BANK LOAN COVENANTS ARE OFTEN VERY RESTRICTIVE SIMILARLY DONALD PALUMBO TREASURER OF MCCORMICK & CO A SPICE COMPANY SAYS WE HAVEN'T BORROWED FROM BANKS IN YEARS RECENTLY THE SPARKS MD COMPANY SET UP A PROGRAM TO SELL 150 MILLION OF MEDIUMTERM NOTES IN THE SECURITIES MARKETS IN ANTICIPATION OF REDUCING SOME OF ITS COMMERCIALPAPER BORROWING AS SHORTTERM RATES RISE PRUDENTIAL'S MR SALEM ALSO CITES COMPANIES' JUSTINTIME INVENTORY METHODS AND THE INCREASING AVAILABILITY OF PUBLIC DEBT AND EQUITY MARKETS FOR SMALL AND MIDSIZE COMPANIES AS REASONS BANKS ARE SEEING LESS LOAN BUSINESS HE ALSO NOTES THAT FINANCE COMPANIES' SHARE OF BUSINESS BORROWING JUMPED FROM ABOUT 12 IN 1981 TO NEARLY 20 A DECADE LATER AND HIS REPORT SAYS THAT NONFINANCIAL COMMERCIALPAPER BORROWINGS HAVE RISEN SHARPLY IN THE PAST YEAR AND A HALF AS WE LOOK INTO 1994 AND 1995 SAYS JAMES MCDERMOTT PRESIDENT OF KEEFE BRUYETTE & WOODS A BANK RESEARCH FIRM THERE IS CONCERN THAT REVENUE WILL HIT THE WALL AS STRUCTURAL CHANGES IN CORPORATE LENDING TRICKLE DOWN TO LOWER SEGMENTS OF THE MARKET BUT BANKS ARE ALSO FIGHTING BACK NOTES ALBERT GAMPER JR PRESIDENT OF CIT GROUP A NATIONWIDE FINANCE COMPANY WHOSE EARNINGS ARE UP 15 THIS YEAR AFTER RETRENCHING DURING THE RECESSION BANKS ARE BECOMING BORNAGAIN LENDERS AND MORE AGGRESSIVE IN PRICING AND TERMS HE SAYS THAT INCLUDES GREATER ADVANCES ON COLLATERAL AND LONGER LOAN MATURITIES THAN BEFORE I ANTICIPATE MORE COMPETITION FOR THE CITS OF THE WORLD IN 1994 SAYS MR GAMPER 9310200117 931020 WHO'S NEWS AMERICAN EXPRESS CO AMERICAN EXPRESS CO NEW YORK THE TRAVEL RELATED SERVICES UNIT NAMED ANNE M BUSQUET 43 YEARS OLD EXECUTIVE VICE PRESIDENT CHARGECARD MARKETING IN THE CONSUMER CARD GROUP STEVEN W ALESIO 39 ALSO WAS NAMED EXECUTIVE VICE PRESIDENT SMALL BUSINESS SERVICES IN THE TRAVEL SERVICES GROUP 9310200116 931020 WORDPERFECT CORP AND MICROSOFT SETTLE SUIT OVER TRADEMARK OREM UTAH WORDPERFECT CORP AND MICROSOFT CORP YESTERDAY SAID THEY HAVE SETTLED A LAWSUIT FILED BY WORDPERFECT ON FRIDAY TERMS WEREN'T DISCLOSED IN ITS SUIT FILED IN US DISTRICT COURT IN NEW YORK WORDPERFECT ALLEGED THAT MICROSOFT HAS VIOLATED TRADEMARK LAWS PROHIBITING FALSE AND DECEPTIVE CLAIMS WITH ADVERTISEMENTS AND NEWS RELEASES THAT CLAIM MICROSOFT WORD IS MORE POPULAR THAN WORDPERFECT'S COMPETING PROGRAM WORDPERFECT ARGUES THAT IT DESERVES THE TITLE BECAUSE IT HAS SHIPPED THE LARGEST NUMBER OF COPIES TO DATE MICROSOFT BASED IN REDMOND WASH CLAIMS IT IS SELLING WORD AT A FASTER RATE THE COMPANIES DIDN'T DISCLOSE WHETHER MICROSOFT HAD AGREED TO CHANGE ITS ADVERTISING MICROSOFT EXECUTIVES HAD SUGGESTED THEY MIGHT BE WILLING TO ADD LANGUAGE THAT CLARIFIES THEIR USE OF THE TERM MOST POPULAR 9310200115 931020 MELLON BANK COMMON STOCK PITTSBURGH MELLON BANK CORP SAID ITS BOARD AUTHORIZED THE REPURCHASE OF AS MANY AS ONE MILLION COMMON SHARES THE COMPANY SAID IT WILL ADD THE SHARES TO ITS TREASURY SHARES AND WILL USE THEM TO MEET CURRENT AND NEARTERM COMMONSTOCK REQUIREMENTS FOR ITS STOCKBASED BENEFIT PLANS MELLON SAID IT PLANS TO MAKE REPURCHASES FROM TIME TO TIME IN THE OPEN MARKET OR THROUGH PRIVATELY NEGOTIATED TRANSACTIONS AS OF SEPT 30 THE COMPANY HAD ABOUT 638 MILLION COMMON SHARES OUTSTANDING 9310200114 931020 MARKETING & MEDIA DISNEY CUTS MOVIE SCENE AFTER TEENS IMITATE STUNT BURBANK CALIF WALT DISNEY CO SAID IT WILL REMOVE A SCENE FROM ITS MOVIE THE PROGRAM THAT DEPICTS YOUNG MEN LYING DOWN IN A BUSY ROAD IN THE WAKE OF REPORTS THAT AT LEAST ONE TEENAGER WAS KILLED AND OTHERS INJURED WHILE APPARENTLY IMITATING THE STUNT A SCENE WHICH DEPICTS A HEAVILY INTOXICATED ADOLESCENT WHO IRRESPONSIBLY AND DANGEROUSLY LAID ON A ROAD IN FRONT OF ONCOMING TRAFFIC WILL BE REMOVED FROM THE PROGRAM' DISNEY'S TOUCHSTONE PICTURES AND DAVID S WARD THE FILM'S WRITER AND DIRECTOR SAID IN A JOINT STATEMENT WHILE THE SCENE IN THE MOVIE IN NO WAY ADVOCATES THIS IRRESPONSIBLE ACTIVITY IT IS IMPOSSIBLE FOR US TO IGNORE THAT SOMEONE MAY HAVE RECKLESSLY CHOSEN TO IMITATE IT A DISNEY SPOKESMAN SAID THE COMPANY WILL SHIP REEDITED REELS BY FRIDAY TO THE 1200 THEATERS SHOWING THE MOVIE THE SPOKESMAN SAID HE HAD NO IDEA HOW MUCH IT WILL COST THE STUDIO TO DELETE THE SCENE THE FILM HAS BROUGHT IN 189 MILLION THUS FAR THE MOVE FOLLOWS A RECENT DISNEY DECISION TO ALTER THE LYRICS TO A SONG IN THE ALADDIN HOME VIDEO FOLLOWING PROTESTS BY ARABAMERICAN GROUPS 9310200113 931020 IWERKS SCORES SPLASHY DEBUT IN ITS IPO BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NOW THAT MULTIMEDIA AND GAMBLING ARE TWO OF THE HOTTEST AREAS IN THE STOCK MARKET IMAGINE WHAT COULD HAPPEN TO SHARES OF A COMPANY THAT SPECIALIZES IN THREEDIMENSIONAL MOVIEBASED ENTERTAINMENT AND THAT HOLDS A CONTRACT WITH A CASINO OPERATOR IWERKS ENTERTAINMENT BEGAN TRADING YESTERDAY AT 33 83 ABOVE ITS OFFERING PRICE OF 18 THE STOCK TRADED AS HIGH AS 37 CLOSING AT 3350 ON NASDAQ EVERYBODY WANTS MULTIMEDIA STOCKS AND INVESTORS ARE COMPETING WITH EACH OTHER TO OWN THIS STOCK IT'S A LIMITED RESOURCE SAID KENNETH FITZSIMMONS HEAD OF THE NEW ISSUES DESK AT ROBERTSON STEPHENS & CO SAN FRANCISCO THE LEAD UNDERWRITER HE SAID THE OFFERING WAS 20 TIMES OVERSUBSCRIBED OBVIOUSLY WE LEFT SOME MONEY ON THE TABLE MR FITZSIMMONS SAID BUT THE MARKET IS NUTS SOMETIMES AND THIS IS ONE OF THOSE TIMES THE OFFERING WAS ORIGINALLY PRICED BETWEEN 10 AND 12 THE EXPECTED RANGE WAS RAISED FIRST TO 1315 AND LATER TO 1517 MR FITZSIMMONS SAID THE SIZE OF THE OFFERING WAS INCREASED FROM 24 MILLION SHARES TO THREE MILLION SHARES ANYTHING WITH THE WORDS INTERACTIVE' OR MULTIMEDIA ENTERTAINMENT' IS GOING TO GET A LOT OF MONEY FLOWING IN SAID LINDA KILLIAN OF RENAISSANCE CAPITAL CORP IN GREENWICH CONN A LOT OF FUND MANAGERS ARE DEDICATED TO INVESTING IN THIS AREA IWERKS IS THE LATEST MULTIMEDIA STOCK TO TAKE CENTER STAGE IN A RATHER SMALL ARENA THE INCREASING NUMBER OF MUTUAL FUNDS SPECIALIZING IN THE COMMUNICATIONS AND ENTERTAINMENT INDUSTRIES AND THE HEAVIER WEIGHTING OF THESE STOCKS IN OTHER FUNDS HAVE MANY MONEY MANAGERS CHASING RELATIVELY FEW STOCKS IF YOU'RE IN THIS GAME OF MULTIMEDIA THEN THIS ONE YOU HAD TO OWN SAID MICHAEL MURPHY WHO WILL BE THE PORTFOLIO MANAGER OF MONITREND INVESTMENT MANAGEMENT'S NEW MILLENIUM TECHNOLOGY SERIES A MUTUAL FUND SCHEDULED TO BE LAUNCHED TODAY MR MURPHY EDITOR OF THE TECHNOLOGY STOCK LETTER RECOMMENDED IWERKS ON HIS IPO HOTLINE IT'S TOO BAD THE FUND WASN'T UP AND RUNNING SO I COULD HAVE BOUGHT IT HE SAID THERE'S NOT THAT MANY MULTIMEDIA STOCKS LIKE IWERKS BASED IN BURBANK CALIF IWERKS PRODUCES SPECIALTY THEATERS THAT PROVIDE ENTERTAINMENT TO DRAW AUDIENCES INTO THE ACTION WITH MOTION SIMULATION GIANT SCREENS AND 360DEGREE AND 3D THEATER SYSTEMS THE COMPANY SAYS IT IS DEVELOPING AN INTERACTIVE VIRTUAL REALITY ATTRACTION USING REALTIME 3D COMPUTER GRAPHICS TECHNOLOGY IN ADDITION TO ITS PRIMARY MARKETS OF THEME PARKS WORLD EXPOSITIONS AND MUSEUMS IWERKS IS STARTING TO DEVELOP A CINETROPOLIS WHICH WILL COMBINE THEATERS WITH RESTAURANTS AND CASINOS THE FIRST CINETROPOLIS ENTERTAINMENT CENTER IS SCHEDULED TO OPEN LATE THIS YEAR AT FOXWOODS CASINO IN LEDYARD CONN BUT IWERKS ISN'T EXPECTED TO REAP BIG REWARDS UNTIL SEVERAL YEARS FROM NOW ANALYSTS SAID ITS CURRENT PRICETOEARNINGS MULTIPLE OF 1675 TIMES FISCAL 1993 PROFIT OF 20 CENTS A SHARE IS HIGH THEY SAY CONSIDERING THAT THE COMPANY IS EXPECTED TO JUST BREAK EVEN IN ITS FISCAL YEAR ENDING JUNE 30 1994 FOR THE FISCAL YEAR ENDING JUNE 1995 THE COMPANY IS PROJECTED TO EARN 25 CENTS A SHARE THERE'S NO QUESTION A LOT OF THIS IS MEDIA MANIA SAYS MR MURPHY INVESTORS ARE LOOKING OUT TWO YEARS FOR PROFIT BUT THE COMPANY'S MOVE TO CASINOS HAS SMOOTHED WORRIES ABOUT DEPENDENCE UPON BIG EVENTS LIKE WORLD FAIRS IN FISCAL 1992 AND 1993 ABOUT 50 AND 40 OF THE COMPANY'S REVENUES RESPECTIVELY WERE DERIVED FROM SALES OF ATTRACTIONS TO WORLD EXPOSITIONS ACCORDING TO THE PROSPECTUS THE MARKETING DOCUMENT FOR THE OFFERING THERE ARE NO MAJOR WORLD EXPOSITIONS SCHEDULED TO OPEN IN FISCAL 1994 OR 1995 AS USUAL MANY NEW INVESTORS FLIPPED THEIR SHARES QUICKLY SOLD THEM FOR PROFIT AFTER BUYING IN THE OFFERING BUT JEFFREY MALET PRESIDENT OF PACIFIC CENTURY ADVISERS IN SAN DIEGO SAID HE'S HOLDING ONTO HIS SHARES ALLOCATED AT THE IPO PRICE AND HE BOUGHT MORE AROUND THE CURRENT PRICE LEVEL THIS COMPANY HAS THE TECHNOLOGY TO MAKE US BELIEVE WE ARE SOMEWHERE ELSE HE SAID THERE IS GREAT DEMAND FOR THIS TYPE OF PRODUCT ALL AROUND THE WORLD AND THIS COMPANY IS GOING TO BE A HOT ITEM IN THE ENTERTAINMENT BUSINESS FOR QUITE SOME TIME WHILE IWERKS MIGHT BE NEW TO WALL STREET ITS FOUNDERS ARE WELLKNOWN IN THE ENTERTAINMENT BUSINESS STANLEY KINSEY THE COMPANY'S CHAIRMAN WORKED FOR WALT DISNEY CO PRIOR TO FOUNDING IWERKS DONALD IWERKS IS COFOUNDER OF THE COMPANY AND VICE CHAIRMAN MR IWERKS WORKED AT WALT DISNEY STUDIOS WHERE FROM 1965 TO 1985 HE HEADED THE TECHNICAL ENGINEERING AND MANUFACTURING DIVISION WHICH WAS RESPONSIBLE FOR THE DESIGN AND MANUFACTURE OF ALL FILM PROJECTION SYSTEMS USED IN DISNEY THEME PARKS MR KINSEY WOULDN'T ELABORATE ON THE FIRST DAY OF TRADING SAYING ONLY IT SHOULD BE CLEAR TO ANYONE THAT IWERKS HAS ACHIEVED ITS GOAL AS AN IPO 9310200112 931020 BUSINESS BRIEF MELVILLE CORP THIRDQUARTER NET INCOME FELL 25 AS SALES DROPPED MELVILLE CORP SAID NET INCOME FOR ITS THIRD QUARTER FELL NEARLY 25 DUE TO A DROP IN GROSS MARGINS DECLINES IN SALES AND OTHER FACTORS NET FOR THE QUARTER ENDED SEPT 25 WAS 415 MILLION OR 35 CENTS A SHARE DOWN FROM THE 553 MILLION OR 49 CENTS A SHARE IN THE YEAREARLIER PERIOD THIRDQUARTER SALES FELL 15 TO 236 BILLION FROM 239 BILLION FOR THE NINE MONTHS EARNINGS FOR THE RYE NY SPECIALTY RETAILER WERE 943 MILLION OR 78 CENTS A SHARE DOWN FROM THE YEAREARLIER 962 MILLION OR 81 CENTS A SHARE THOSE FIGURES INCLUDE AN ACCOUNTING CHANGE TO REFLECT THE RETROACTIVE APPLICATION OF A FEDERAL TAX CHANGE MELVILLE NOTED SALES FOR THE NINE MONTHS WERE BASICALLY FLAT AT 693 BILLION 9310200111 931020 THE NEW DEMON IN DEBATE OVER NAFTA MANY SEE GLOBAL TRADE AS SYMBOL OF HARDSHIP VOCAL CRITICS IGNORE THE JOBS CREATED BY US EXPORTS SOME CLERGY PLAY A ROLE IT IS LIKE A RORSCHACH TEST' BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL THE FREE TRADE SYSTEM IS DESTRUCTIVE IT BREAKS UP OLD NATIONALITIES AND PUSHES THE ANTAGONISM OF THE PROLETARIAT AND THE BOURGEOISIE TO THE EXTREME POINT IT IS IN THIS REVOLUTIONARY SENSE ALONE THAT I VOTE IN FAVOR OF FREE TRADE WOODLAND CALIF EAGER TO OPEN A NEW FRONT IN THE WAR AGAINST TRADE 75 PROTESTERS GATHER IN THE SHADOW OF A CONTADINA TOMATO CANNERY THE PLANT IS SHUTTING DOWN MOST OF ITS PRODUCTION AND HEADING SOUTH OF THE BORDER THE ORGANIZERS SHOUT NO TO NAFTA INTONES ONE IN A CHANT THAT ECHOES THROUGH THE CROWD NO TO NAFTA JUST ONE PROBLEM CONTADINA SAYS IT HAS NO INTENTION OF MOVING TO MEXICO PRODUCTION COSTS ARE TOO HIGH THERE TOMATO YIELDS TOO LOW INSTEAD THE NESTLE SA SUBSIDIARY PLANS TO TRANSFER PRODUCTION OF SOME FOOD PRODUCTS TO ANOTHER CALIFORNIA CANNERY IT OWNS 200 MILES AWAY BISHOP FRANCIS QUINN OF NEARBY SACRAMENTO SAYS HE DOESN'T KNOW MUCH ABOUT THE CANNERY CONTRETEMPS BUT NEVERTHELESS APPROVED A REQUEST TO HAVE A LOCAL PRIEST LEAD THE PROTESTERS IN PRAYER WHEN YOU HAVE COMPLETELY FREE TRADE THE CATHOLIC BISHOP EXPLAINS IT CAN HARM THE POOR LONG A SYMBOL OF PROSPERITY TRADE HAS BECOME FOR MANY A SYMBOL OF POVERTY AND TREACHERY THOUGH MILLIONS OF US JOBS DEPEND ON INTERNATIONAL TRADE THE NEW DEMONIZING MYTH HOLDS IT MAINLY RESPONSIBLE FOR JOB LOSSES AND CONTINUING ECONOMIC UNCERTAINTY IN THIS PSYCHODRAMA MEXICO STANDS FOR LOWWAGE PRODUCTION THAT WILL STEAL JOBS FROM AMERICANS AND JAPAN STANDS FOR HIGHQUALITY TECHNOLOGY THAT WILL DRIVE AMERICA INTO ECLIPSE THE US IS VIEWED AS SLIPPING INTO AN ECONOMIC NOMAN'S LAND UNABLE TO FEND OFF PRESSURE FROM EITHER SORT OF RIVAL AS FOR GAINS BY MEXICO OR JAPAN THERE'S A GUT FEELING THAT THEY'RE CHEATING THAT IT'S NOT A SQUARE DEAL SAYS BILL CAMP A SACRAMENTO AFLCIO ORGANIZER TRADE HAS BECOME TRAUMATIC FOR OTHER NATIONS TOO CANADIAN UNIONISTS BLAME A FREETRADE AGREEMENT WITH THE US FOR A RECESSION THERE THAT BEGAN IN 1989 EVEN THOUGH THE PACT WENT INTO EFFECT ONLY THAT YEAR AND IS TO PHASE OUT TARIFFS OVER A DECADE FRENCH FARMERS SAY PROPOSALS TO CUT FARM SUBSIDIES MODESTLY UNDER A GLOBAL TRADE DEAL THREATEN RURAL COMMUNITIES EVEN THOUGH FARMERS HAVE BEEN LEAVING AGRICULTURE FOR DECADES TRADE IS LIKE A RORSCHACH TEST SAYS ROBERT LAWRENCE A TRADE ECONOMIST AT HARVARD UNIVERSITY IT BRINGS OUT CONCERNS AND FEARS ABOUT THE ECONOMY TAKE THE STAGNATION IN US WAGES SINCE 1973 HOURLY COMPENSATION INCLUDING FRINGE BENEFITS HAS RISEN A MEAGER 5 AFTER ACCOUNTING FOR INFLATION MEANWHILE THE PAY OF HIGHSCHOOLEDUCATED WORKERS HAS FALLEN FURTHER BEHIND THAT OF COLLEGE GRADUATES ALL THIS OCCURRED AS INTERNATIONAL TRADE BOOMED LEADING MANY IN ORGANIZED LABOR TO BLAME THE BLUECOLLAR BLUES ON GLOBAL COMPETITION DAMN NEAR EVERYTHING IS CONNECTED TO TRADE SAYS BILL BYWATER PRESIDENT OF THE INTERNATIONAL UNION OF ELECTRICAL WORKERS BUT PROF LAWRENCE SAYS THE REAL PROBLEM IS CLOSER TO HOME THE INABILITY OF COMPANIES AND WORKERS TO ADAPT TO REVOLUTIONARY CHANGES IN TECHNOLOGY PRODUCTIVITY GROWTH SLUMPED IN MANUFACTURING AND ALMOST DISAPPEARED IN THE SERVICE SECTOR DURING THE 1980S AS COMPANIES STRUGGLED TO FIGURE OUT HOW TO USE COMPUTERS EFFECTIVELY THAT DIFFICULTY GENERALLY HELD DOWN WAGE INCREASES AND COMPANIES THAT DID EMBRACE TECHNOLOGY TURNED INCREASINGLY TO HIGHLY SKILLED WORKERS LEAVING LESSEDUCATED ONES IN THE LURCH ALL THE EVIDENCE POINTS TO THE ROLE OF TECHNOLOGY AS THE WORKERS' PROBLEM THE ECONOMIST SAYS SO WHY THE DEMONIZATION OF TRADE PARTLY IT'S THE HIGH VISIBILITY OF TRADE AGREEMENTS AND THE WAY THEIR EXPLICIT PROVISIONS TURN THEM INTO POLITICAL TARGETS NEXT MONTH CONGRESS IS SCHEDULED TO VOTE ON THE NORTH AMERICAN FREE TRADE AGREEMENT A 2000PAGE DOCUMENT THAT LIBERALIZES TRADE WITH MEXICO A SYMBOL OF LOWWAGE COMPETITION NAFTA HAS BECOME THE CENTRAL TARGET FOR THOSE WORRIED ABOUT BEING LEFT BEHIND IN THE GLOBAL ECONOMY IN THE 1992 PRESIDENTIAL CAMPAIGN NAFTA DISPLACED JAPAN AS THE SOURCE OF PEOPLE SAYING THE PROBLEM REALLY IS ' SOMETHING OUTSIDE THEMSELVES NOT THEMSELVES SAYS SEN BILL BRADLEY A NEW JERSEY DEMOCRAT AND CONGRESSIONAL LEADER ON ECONOMIC ISSUES TECHNOLOGY IS STEALTHIER IT DOESN'T COME IN TRADE PACTS RARELY REQUIRES CONGRESSIONAL APPROVAL AND CHANGES THE WORLD IN WAYS DIFFICULT TO SEE OR PREDICT ALBERT ROJAS A FORMER LABOR OFFICIAL NOW A TRAINING CONSULTANT FOR THE STATE OF CALIFORNIA PROUDLY RECALLS HOW THE UNITED FARM WORKERS ORGANIZED TOMATO PICKERS IN THE EARLY 1970S BUT WITHIN A DECADE HE SAYS TOMATO GROWERS INTRODUCED AUTOMATED MACHINERY THAT COULD BE RUN BY JUST A FEW WORKERS ELIMINATING MANY OF THE UNION'S GAINS NEVERTHELESS MR ROJAS FRUSTRATED BY HIS INABILITY TO PROTECT WORKERS' JOBS IS LEADING THE SACRAMENTO TRADE PROTESTS BY THE END OF THE 1970S MOST UNIONS HAD MADE PEACE WITH TECHNOLOGY AFTER NEGOTIATING CONTRACT PROVISIONS THAT JOBS DISPLACED BY AUTOMATION WOULD BE ELIMINATED THROUGH ATTRITION NOT LAYOFFS IF YOU TRY TO STOP AUTOMATION AND THE INTRODUCTION OF NEW TECHNOLOGY THE JAPANESE AND GERMANS WILL EAT YOU ALIVE SAYS DOUGLAS FRASER FORMER PRESIDENT OF THE UNITED AUTO WORKERS AT THE SAME TIME TECHNOLOGY ITSELF UNDERWENT CHANGES THAT MADE IT SEEM LESS THREATENING PERSONAL COMPUTERS SPREAD TO THE HOME AND WORKPLACE TAKING ADVANCED TECHNOLOGY OUT OF THE HANDS OF ANONYMOUS SPECIALISTS CORDONED OFF IN FRIGID COMPUTER ROOMS TO MANY PEOPLE TECHNOLOGY CHANGED FROM A SYMBOL OF AUTHORITY THE OMINOUS ELECTRONIC BRAIN TO ONE OF SUBVERSION AS HACKERS USED DESKTOP COMPUTERS TO INFILTRATE POWERFUL COMPANIES AND GOVERNMENT AGENCIES TRADE NEGOTIATIONS BY CONTRAST REMAIN THE PROVINCE OF ELITES FEEDING FEARS BY THOSE OUTSIDE THE TRADE ESTABLISHMENT THAT THEY ARE BEING SOLD OUT AFTER WORLD WAR II SAYS IM DESTLER A UNIVERSITY OF MARYLAND TRADE HISTORIAN THE US AND ITS MAIN TRADING PARTNERS SOUGHT TO LIMIT PUBLIC PARTICIPATION THEY WANTED TO GUARD AGAINST REEMERGENCE OF THE STEEP TARIFFS OF THE 1920S AND 1930S TO TRADE SPECIALISTS THE PUBLIC MEANT TEXTILE STEEL AND OTHER PROTECTIONIST LOBBIES POWERFUL ENOUGH TO THWART FREETRADE MEASURES SO TO REDUCE THE LOBBYISTS' ABILITY TO CUT DEALS CONGRESS ADOPTED RULES BARRING LAWMAKERS FROM TRYING TO AMEND TRADE AGREEMENTS AND THE US TRADE REPRESENTATIVE'S OFFICE ROUTINELY APPLIED MILITARY CLASSIFICATIONS TO TRADE DOCUMENTS AND RARELY APPOINTED TRADE CRITICS TO ITS INFLUENTIAL ADVISORY COMMITTEES OPEN TRADE WAS BUILT ON CLOSED POLITICS MR DESTLER SAYS THIS EXCLUSIONARY STRATEGY LINGERS ON IN A FULLPAGE ADVERTISEMENT IN THE WASHINGTON POST LAST MONTH FOR INSTANCE TWODOZEN LIBERAL ADVOCACY GROUPS CHARGED THAT NAFTA'S ARBITRATION PANELS WOULD MAKE US FOODSAFETY AND ENVIRONMENTAL LAW SUBJECT TO AN UNELECTED NAFTA BUREAUCRACY THAT CITIZENS CANNOT CONTROL AT THE SAME TIME THE GROUPS DISPARAGED NAFTA'S ENVIRONMENTAL ENFORCEMENT COMMISSIONS AS LITTLE MORE THAN A DISCUSSION CLUB THE CHARGES MAY BE CONTRADICTORY BUT THEY ARE AMPLIFIED ON THE POLITICAL RIGHT BY FORMER PRESIDENTIAL CANDIDATES ROSS PEROT AND PAT BUCHANAN WHO MAKE SIMILAR ACCUSATIONS ANGERED TWO MEMBERS OF THE ECONOMICS COMMITTEE OF THE SIERRA CLUB WHICH SIGNED THE ADVERTISEMENT ISSUED A STATEMENT CASTIGATING THE AD THE US REPRESENTATIVE TO THE UNITED NATIONS HUMAN RIGHTS COMMISSION IS NOT ELECTED EITHER BUT THAT DOES NOT COMMEND ITS ELIMINATION THEY WROTE YET THE SECRECY CHARGES STICK THERE IS THIS PERCEPTION THAT WHOEVER IT IS WHO'S MAKING THESE DECISIONS ABOUT TRADE POLICY IT AIN'T ME NOTES C FORD RUNGE A UNIVERSITY OF MINNESOTA ECONOMIST WHO SIGNED THE DISSENT RELIGIOUS GROUPS HAVE JUMPED ON THE ANTITRADE CRUSADE EVEN THOUGH FEW ECONOMISTS DENY THAT TRADE HAS LIFTED MANY DEVELOPING NATIONS OUT OF POVERTY IN ST LOUIS THE ARCHDIOCESE'S COMMISSION ON HUMAN RIGHTS WENT SO FAR AS TO CONDEMN NAFTA FOR FAILING TO REFLECT THE GOSPEL TEACHINGS OF THE PRIMACY OF LOVE THE CALL TO JUSTICE AND HUMAN UNITY THE COMMISSION LISTED SOME SPECIFIC CRITICISMS BUT AT HEART SAYS ROSEMARY DAVISON WHO DRAFTED THE DOCUMENT IT'S NOT WHAT'S IN THE AGREEMENT THAT BOTHERS ME IT'S WHAT ISN'T TRADE THE COMMERCIAL RELATIONS AMONG NATIONS FAILED TO MEET AN ELEVATED STANDARD OF SOCIAL JUSTICE SHE SAYS TRADE BRAWLS ALSO WERE PROMINENT IN THE PERIOD BETWEEN THE TWO WORLD WARSWITH A DIFFERENCE THEN AMERICA'S BIG CORPORATIONS AIDED BY THE REPUBLICAN PARTY PUSHED FOR PROTECTION WHILE MANY UNIONS BACKED FREE TRADE AS A WAY TO BUILD WORKER SOLIDARITY IN 1922 CONGRESS APPROVED NEW IMPORT TARIFFS AT THE URGING OF THE CHEMICAL INDUSTRY WHICH FEARED COMPETITION FROM THE LOWWAGE SCOURGE OF THE DAY DEFEATED GERMANY NOWADAYS UNIONS DON'T PUT MUCH STOCK IN GLOBAL ORGANIZING AND TO WORKERS' DISMAY CORPORATIONS ARE SETTING UP FACTORIES ABROAD FOR WORKERS AROUND SACRAMENTO TRADE IS OFTEN HELD UP AS THE PRINCIPAL CAUSE OF ECONOMIC DISTRESS DESPITE PLENTY OF OTHER PROBLEMS SUCH AS THE CLOSURE OF TWO OF THE AREA'S THREE MILITARY BASES AND A 25 PLUNGE IN REALESTATE VALUES THE CUTBACK AT THE CONTADINA CANNERY IS A MATTER OF SIMPLE TOMATO ECONOMICS NOT NAFTA SAY TIM BRUER A NESTLE VICE PRESIDENT WHO OVERSEES THE SUBSIDIARY HE CONTENDS THAT AN OVERSUPPLY OF TOMATO PRODUCTS IS FORCING A CONSOLIDATION OF CERTAIN US OPERATIONS ROBERTA COOK AN AGRICULTURAL ECONOMIST AT THE NEARBY UNIVERSITY OF CALIFORNIA AT DAVIS ADDS THAT NESTLE WOULD BE FOOLISH TO MOVE TO MEXICO SHE NOTES THAT ITS TOMATO CROP IS POORER TRANSPORTATION WORSE AND PRODUCTION COSTS HIGHER THAN IN THE SACRAMENTO VALLEY PEOPLE DON'T UNDERSTAND SHE SAYS UNDERDEVELOPMENT ISN'T AN ADVANTAGE BUT IN THE NEW MYTHOLOGY OF TRADE ALL THAT IS DISMISSED AS A RUSE SYLVIA RAYA A 13YEAR CONTADINA VETERAN SAYS I DON'T WANT NAFTA BECAUSE THAT'S THE REASON WE'RE LOSING OUR JOBS BOB DIAZ PRESIDENT OF THE TEAMSTERS LOCAL REPRESENTING THE WORKERS GUESSES THAT NESTLE COULD SHIP TO MEXICO DESALINIZATION EQUIPMENT DEVELOPED DURING THE GULF WAR TO DEAL WITH WATER SHORTAGES THERE HE ESTIMATES THAT ONLY 200 OF THE 850 PERMANENT AND SEASONAL CONTADINA WORKERS WILL HAVE JOBS AT THE WOODLAND CANNERY NEXT YEAR A FIGURE NESTLE TERMS TOO LOW ANTITRADE PROTESTERS ARE EVEN MORE SHRILL WHEN PRESIDENT CLINTON LED A TELEVISED TOWN MEETING ON HEALTH CARE EARLIER THIS MONTH IN SACRAMENTO PROTESTERS WITH BULLHORNS SHOUTED ANTITRADE SLOGANS ACROSS THE STREET FROM THE TV STUDIO NICK IVANOVICH A LOAN OFFICER WHO HEADS A LOCAL CHAPTER OF ROSS PEROT'S UNITED WE STAND AMERICA PROWLED THE SIDEWALK AND HE HAS LITTLE DOUBT ABOUT WHAT AMERICA NEEDS IF WE JUST STOPPED TRADING WITH THE REST OF THE WORLD WE'D BE 100 BILLION AHEAD HE DECLARED REFERRING TO THE GROWING US MERCHANDISETRADE DEFICIT TOM ERES THE INCOMING PRESIDENT OF THE SACRAMENTO CHAMBER OF COMMERCE SAYS TRADE SHOULD LOGICALLY BE PART OF A NEW GROWTH STRATEGY FOR THE REGION BUT IN THE PRESENT ATMOSPHERE MANY SMALL BUSINESSES ARE SUSPICIOUS ESPECIALLY OF NAFTA PEOPLE GET CATATONIC MR ERES SAYS THAT LEAVES IT TO THE OPPOSITION TO DEFINE THE ISSUES AND SET THE BITTER TONE OF THE DEBATE WHEN REP JOHN DOOLITTLE A LOCAL REPUBLICAN TOLD A ROSEVILLE CALIF TOWN MEETING HE WAS UNDECIDED ON NAFTA SOME UNITED WE STAND MEMBERS SAY THEY LATER HUNG HIM IN EFFIGY AT A TRADE FORUM IN PLACERVILLE CALIF FRANK RADOSLOVICH A YOUNG ATTORNEY WHO FAVORS NAFTA SAYS AUDIENCE MEMBERS DEMANDED TO KNOW WHERE HIS CLOTHES WERE MADE BEFORE THEY WOULD LET HIM CONTINUE SPEAKING IN THE STATELY CITY HALL IN COLUSA CALIF AN HOUR'S DRIVE FROM SACRAMENTO VETERAN REP VIC FAZIO SPENDS 45 MINUTES ANSWERING QUESTIONS ABOUT NAFTA NO THE WHITEHAIRED DEMOCRAT SAYS NAFTA ISN'T A GIVEAWAY TO MEXICO YES THERE ARE MEXICANS WITH ENOUGH MONEY TO BUY US EXPORTS NO THE TRADE PACT WON'T CREATE A ONEWORLD GOVERNMENT LATER AS HE WALKS TO HIS CAR HE SAYS THE MEETING HELPS HIM GAUGE THE INTENSITY OF FEELING AGAINST TRADE PEOPLE HAVE LOST JOBS TO OVERSEAS COMPETITION HE SAYS THEY DON'T SEE THE JOBS THAT ARE CREATED BUT MR RADOSLOVICH HAS ANOTHER THEORY ABOUT THE DEMONIZATION OF TRADE HE BLAMES MIKHAIL GORBACHEV THE BIG CRUSADE AGAINST COMMUNISM IS GONE HE SAYS NAFTA COMES IN AND FILLS THAT IDEOLOGICAL VOID IT'S BECOME A MORAL CRUSADE 9310200110 931020 BUSINESS BRIEF CURTICEBURNS FOODS INC WEAVER POTATO CHIP AGREES TO BUY PART OF HILAND UNIT CURTICEBURNS FOODS INC SAID IT SIGNED A LETTER OF INTENT TO SELL CERTAIN ASSETS OF ITS HILAND POTATO CHIP CO UNIT TO PRIVATELY HELD WEAVER POTATO CHIP CO LINCOLN NEB TERMS WEREN'T DISCLOSED A CURTICEBURNS SPOKESWOMAN SAID THE ASSETS TO BE SOLD CONSIST OF CERTAIN EQUIPMENT THE ROCHESTER NY COMPANY SAID IT PLANS TO CLOSE HILAND'S DES MOINES IOWA PLANT WHICH EMPLOYS 110 WORKERS THE PLANT ALSO HAS A SALES STAFF OF 100 IF THE SALE IS COMPLETED THE PRODUCTION MANAGEMENT AND ADMINISTRATION OPERATIONS OF THE PLANT WOULD BE INCORPORATED INTO WEAVER'S LINCOLN FACILITY THE COMPANY SAID WEAVER EXPECTS TO RETAIN JUST THE SALES STAFF CURTICEBURNS SAID THE TRANSACTION IS SUBJECT TO A DEFINITIVE AGREEMENT AND BOARD APPROVAL BY BOTH COMPANIES 9310200109 931020 INSIDE TRACK BALLY GAMING EXECUTIVES WIN BIG ON STOCK PURCHASE BY PAULINE YOSHIHASHI AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL DO INSIDERS AT BALLY GAMING INTERNATIONAL INC SEE A JACKPOT IN THE STOCK'S FUTURE SHARES OF THE LAS VEGAS SLOTMACHINE AND GAMBLING EQUIPMENT MAKER HAVE CAUGHT THE EYE OF MORE THAN ONE BARGAINHUNTER LATELY FIVE SENIOR INSIDERS INCLUDING THE COMPANY'S CHAIRMAN AND ITS PRESIDENT SNAPPED UP A COMBINED 144025 SHARES AT 1075 EACH ON SEPT 29 LIFTING THEIR HOLDINGS BY 50 ON AVERAGE AT THE TIME BALLY GAMING'S SHARES FETCHED 1940 IN THE OVERTHECOUNTER MARKET THIS APPARENTLY FAVORABLE DEAL WAS ACTUALLY THE RESULT OF A COMPLICATED SHARE TRANSACTION IN JUNE THEN BALLY GAMING'S MANAGEMENT COMMITTED ITSELF TO BUY A BLOCK OF SHARES AT THE THENPREVAILING PRICE OF 1075 FROM A GROUP OF FIDELITY MANAGEMENT CORP MUTUAL FUNDS FIDELITY WHICH EARLIER HAD ENLARGED ITS HOLDING IN BALLY GAMING THROUGH A SEPARATE STOCK SWAP HAD BEEN FORCED TO SELL A PORTION OF ITS NEWLY ENLARGED STAKE TO MEET NEVADA LICENSING REGULATIONS AND OTHER RULES BUT BALLY GAMING'S TRANSACTION WITH FIDELITY COULDN'T BE COMPLETED UNTIL IT RECEIVED REGULATORY APPROVAL FROM NEVADA GAMING AUTHORITIES AND OTHER AGENCIES BY THE TIME THAT APPROVAL WAS IN HAND IN LATE SEPTEMBER BALLY GAMING'S STOCK HAD SHOT UP TOWARD 20 A SHARE YESTERDAY THE STOCK CLOSED AT 20625 DOWN 75 CENTS AND OFF FROM ITS RECENT 52WEEK HIGH OF 24 WE WERE COMMITTED ONE WAY OR ANOTHER TO BUY AT 1075 SAYS BALLY GAMING'S CHAIRMAN RICHARD GILLMAN WHILE WE WAITED FOR REGULATORY APPROVAL THE STOCK COULD HAVE GONE LOWER OR HIGHER MR GILLMAN SAYS THE RECENT 15 MILLION INSIDER SHAREPURCHASES AT BALLY GAMING SHOW MANAGEMENT'S CONFIDENCE IN THE DIRECTION WE'RE HEADED WE'RE DELIGHTED WITH THE PROGRESS OF THE COMPANY THEY'RE NOT ALONE INVESTOR MARVIN DAVIS WHO HADN'T TAKEN A MAJOR STAKE IN ANY PUBLIC COMPANY FOR YEARS RECENTLY GRABBED A 57 BALLY GAMING STAKE AS HIS FIRST GAMBLINGINDUSTRY INVESTMENT THE LOS ANGELES INVESTOR'S STAKE WHICH HE SAYS IS FOR INVESTMENT PURPOSES INCLUDES 185000 SHARES BOUGHT BETWEEN AUG 31 AND SEPT 3 AT 16 TO 17 A SHARE WE'RE ALWAYS PLEASED TO SEE MANAGEMENT PURCHASING THEIR OWN STOCK SAYS RUDOLPH REINFRANK AN ADVISER TO MR DAVIS IT'S A LONGTERM POSITIVE FOR THE COMPANY A CHEAP GAMBLING STOCK IS ALMOST AS RARE AS A ROYAL FLUSH THESE DAYS SO IT'S NOT SURPRISING THAT SOME AGGRESSIVE INVESTORS ARE WILLING TO TAKE A CHANCE ON A COMPANY WITH AN UNINSPIRING TRACK RECORD DAVID GLANCY WHO MANAGES FIDELITY'S SPARTAN HIGHINCOME FUND SAYS BALLY GAMING'S PROSPECTS WILL COME INTO CLEARER FOCUS NEXT YEAR THIS IS ENTIRELY A 1994 STORY HE SAYS ADMITTING THAT THE STOCK HAD GOTTEN AHEAD OF ITSELF LAST YEAR AS BALLY'S PERFORMANCE DIDN'T MATCH UP TO MARKET EXPECTATIONS BY NEXT YEAR HE SAYS BALLY GAMING SHOULD BE ABLE TO DEMONSTRATE ITS ABILITY TO SHIP AND SERVICE UNITS AND INVESTORS WILL BE ABLE TO BETTER GAUGE MARKET SUPPORT AND ACCEPTANCE OF ITS NEW PRODUCTS ANALYSTS SAY THAT ALTHOUGH BALLY WULFF THE COMPANY'S GERMAN UNIT HAS HISTORICALLY TURNED A SOLID PROFIT BALLY'S DOMESTIC BUSINESS HAS POSTED LOSSES ON AN OPERATING BASIS BUT IS GENERALLY EXPECTED TO RETURN TO PROFITABILITY NEXT YEAR THE HOPE IS THAT IF BALLY GAMING CAN SNAG 20 OF THE 100000 GAMBLING MACHINES EXPECTED TO BE SHIPPED IN NORTH AMERICA NEXT YEAR ANALYSTS SAY 1994 EARNINGS COULD COME IN AT 1 A SHARE OR BETTER WHICH WOULD BE WELL UP ON PROJECTIONS OF A FLAT YEAR FOR 1993 THE COMPANY EARNED 50 CENTS A SHARE IN 1992 STILL MOST ANALYSTS URGE THAT INVESTORS PROCEED WITH CAUTION BEFORE ROLLING THE DICE WITH BALLY GAMING BRUCE TURNER OF RAYMOND JAMES & ASSOCIATES FOR EXAMPLE LIKES THE STOCK AS A TURNAROUND PLAY BUT WARNS IT'S NOT FOR THE FAINTHEARTED IF THE MARKET DOESN'T RESPOND WELL TO THE COMPANY'S NEW PROLINE SLOT MACHINES OR IF THE COMPANY HAS TROUBLE SHIPPING OR SERVICING THE EQUIPMENT EARNINGS FORECASTS AND TARGET STOCK PRICES COULD DROP IN A HURRY TO BE SURE NOT MANY PEOPLE WERE WILD FOR BALLY GAMING WHEN THE STOCK MADE ITS DEBUT AT 12 A SHARE IN NOVEMBER 1991 THE COMPANY AT THE TIME HAD TO COPE WITH AN IMAGE PROBLEM HAVING BEEN SPUN OFF BY BALLY MANUFACTURING WHICH WAS STRUGGLING TO STAY AFLOAT AS A CASINO AND HEALTHCLUB COMPANY BALLY MANUFACTURING STARTED OUT IN THE 1930S AS A GAME MAKER AND ONCE DOMINATED THE BUSINESS BUT PAST MANAGEMENT ALL BUT GAVE AWAY ITS MARKET IN THE 1970S AND EARLY 1980S JUST AS A RENO NEV UPSTART INTERNATIONAL GAME TECHNOLOGY WAS GATHERING STEAM TODAY WITH IGT THE DOMINANT WORLDWIDE SUPPLIER OF SLOTS AND GAMBLING TECHNOLOGY MR DAVIS AND OTHERS ARE BETTING THAT BALLY GAMING CAN NAB A SMALL BUT PROFITABLE SPOT AS THE INDUSTRY'S DISTANT SECONDPLACE FINISHER TODAY IGT'S MARKET CAPITALIZATION OF 49 BILLION DWARFS BALLY GAMING'S 229 MILLION SO FAR NEITHER OF BALLY'S OTHER MAIN COMPETITORS UNIVERSAL DISTRIBUTING OF NEVADA INC AND SIGMA GAME INC BOTH OWNED BY JAPANESE INVESTORS HAVE EMERGED TO CLAIM SECONDPLACE STATUS DESPITE EXPLOSIVE GLOBAL DEMAND FOR SLOTS AND OTHER GAMES SOME FANS SAY RECENT CHANGES AT BALLY GAMING MAY IMPROVE ITS CHANCES OF PULLING AHEAD OF THE PACK AFTER YEARS OF HAVING LITTLE NEW TO OFFER BALLY GAMING HAS ROLLED OUT A PROMISING NEW LINE OF SLOT AND VIDEO GAMES AND IS FORGING AHEAD WITH TOUCHSCREEN VIDEO GAMBLING MACHINES THAT CAN OFFER SEVERAL GAMES ON ONE UNIT THE COMPANY'S PLAYER TRACKING SYSTEMS WHICH GENERATE REAMS OF DATA FOR CUSTOMER MARKETING MACHINE MAINTENANCE AND OTHER PURPOSES ALSO HAVE BEGUN TO POP UP IN MORE CASINOS MOREOVER ANALYSTS NOTE NO MATTER HOW GOOD A VENDOR IS FEW OPERATORS WANT TO GIVE ALL OF THEIR BUSINESS TO A SINGLE COMPANY INDEED BALLY GAMING HAS BEGUN TO MAKE INROADS IN EMERGING RIVERBOAT CASINO MARKETS INDIAN CASINOS AND OTHER SMALLER JURISDICTIONS PARTLY BECAUSE OF ITS SHORT LEAD TIME FOR DELIVERY OUR THESIS WAS THAT THE COMPANY DOESN'T NEED TO BEAT IGT TO DO WELL AND THAT'S TURNED OUT TO BE TRUE EVEN THOUGH THEIR EXECUTION THROUGH 1992 TURNED OUT TO BE VERY DISAPPOINTING SAYS FIDELITY'S MR GLANCY 9310200108 931020 BUSINESS BRIEF INFORMATION AMERICA INC PACT TO ACQUIRE 3 UNITS OF PARAMOUNT IS TERMINATED INFORMATION AMERICA INC SAID IT TERMINATED ITS AGREEMENT TO ACQUIRE THREE UNITS OF PARAMOUNT COMMUNICATIONS INC NEWS OF THE TURNABOUT HELPED PUSH DOWN THE ATLANTA COMPANY'S STOCK PRICE 20 TO 350 A SHARE OFF 875 CENTS IN OVERTHECOUNTER MARKET TRADING YESTERDAY SOME INDUSTRY OBSERVERS HAD SEEN THE PROPOSED ACQUISITION AS A WAY FOR INFORMATION AMERICA A PROVIDER OF ONLINE LEGAL DATA AND ONE OF THE FASTESTGROWING US COMPANIES IN THE 1980S TO REGAIN SOME LOST MOMENTUM WHILE TERMS OF THE AGREEMENT WERE NEVER DISCLOSED THE TRANSACTION WOULD HAVE LEFT PARAMOUNT WITH A 49 STAKE IN INFORMATION AMERICA BUT INFORMATION AMERICA EXECUTIVES SAID COMPETING PRIORITIES AT PARAMOUNT WHICH ITSELF IS EMBROILED IN A MASSIVE TAKEOVER BATTLE STOOD IN THE WAY WE WERE CONCERNED ABOUT WHO WOULD ULTIMATELY OWN 49 OF OUR STOCK SAID MARY MADDEN INFORMATION AMERICA'S PRESIDENT 9310200106 931020 BUSINESS BRIEF WW WILLIAMS CO SHAREHOLDERS APPROVE PLAN TO TAKE COMPANY PRIVATE WW WILLIAMS CO SAID ITS SHAREHOLDERS VOTED AT A SPECIAL MEETING YESTERDAY TO APPROVE THE COMPANY'S PLAN TO GO PRIVATE THE COLUMBUS OHIO DISTRIBUTOR OF INDUSTRIAL EQUIPMENT SAID IN A NEWS RELEASE THAT 87 OF ITS SHAREHOLDERS VOTED TO APPROVE AN AMENDMENT TO ITS ARTICLES OF INCORPORATION EFFECTING A 1000TO1 REVERSE STOCK SPLIT WW WILLIAMS SAID THAT ONCE THE REVERSE SPLIT IS COMPLETED THE COMPANY WILL HAVE ABOUT 80 SHAREHOLDERS AND NO LONGER WILL BE REQUIRED TO COMPLY WITH REPORTING REQUIREMENTS OF THE SECURITIES AND EXCHANGE COMMISSION ALSO THE COMPANY SAID ITS COMMON STOCK TRADED UNDER THE SYMBOL WWWM NO LONGER WILL BE ACTIVELY TRADED ON THE NASDAQ MARKET COMPANY OFFICIALS COULDN'T BE REACHED FOR FURTHER COMMENT THE COMPANY HAS BEEN PUBLICLY HELD SINCE 1968 9310200105 931020 THREE BIG BANKS REPORT GAINS IN NET INCOME DECLINE IN PROBLEM DEBTS AIDS CITICORP BANC ONE AND WELLS FARGO & CO BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL THREE OF THE NATION'S BIGGEST BANKS CITICORP BANC ONE CORP AND WELLS FARGO & CO REPORTED STRONG THIRDQUARTER EARNINGS BOOSTED BY FEWER PROBLEM DEBTS CITICORP'S NET INCOME NEARLY QUINTUPLED WHILE BANC ONE'S EARNINGS ROSE 16 SAN FRANCISCOBASED WELLS FARGO'S NET INCOME INCREASED NEARLY SIXFOLD ASIDE FROM LOWER LOANLOSS PROVISIONS BOTH CITICORP AND BANC ONE BENEFITED FROM A PICKUP IN REVENUE CITICORP WAS HELPED BY GAINS IN OVERSEAS OPERATIONS AND SECURITIES AND CURRENCY TRADING AND BANC ONE'S GROWTH WAS BOOSTED BY STRONG CONSUMER LENDING WELLS FARGO WAS AIDED BY A DROP IN THE LOSS PROVISION ASIDE FROM LOWER LOANLOSS PROVISIONS BOTH CITICORP AND BANC ONE BENEFITED FROM A PICKUP IN REVENUE WITH CITICORP HELPED BY GROWTH IN GAINS ON SECURITIES AND CURRENCY TRADING AND BANC ONE'S RETAIL GROWTH BOOSTED BY STRONG CONSUMER LENDING WELLS FARGO WAS AIDED BY A DROP IN THE LOSS PROVISION AND MORESTABLE LENDING ACTIVITY THE EARNINGS EXCEEDED WALL STREET'S EXPECTATIONS EXCEPT FOR BANC ONE WHICH CAME IN ON TARGET OR SLIGHTLY BELOW FORECASTS THE STOCKS OF THE THREE BANKS YESTERDAY FOLLOWED THE TREND OF THEIR EARNINGS INCREASES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CITICORP ROSE 125 CENTS TO 3575 AND WELLS FARGO CLIMBED 2125 TO 11875 BANK ONE FELL 25 CENTS TO 40 IT'S NOT THE LAST QUARTER OF EARNINGS GROWTH LIKE THE INVESTORS SEEM TO POSTULATE SAID ROBERT ALBERTSON BANKING ANALYST AT GOLDMAN SACHS & CO THE LARGEST US BANKING COMPANY'S RESULTS WERE WELL ABOVE WALL STREET'S CONSENSUS FORECAST OF 74 CENTS A SHARE THE THIRDQUARTER RESULTS SHOWED SUBSTANTIAL STRENGTHENING IN ASSET QUALITY A WIDER NET INTEREST MARGIN AND STRONG REVENUE FROM TRADING SECURITIES AND CURRENCIES ANALYSTS WERE ENCOURAGED BY THE NEW YORKBASED BANK'S 13 DECLINE IN NONPERFORMING ASSETS EXCLUDING DEVELOPINGCOUNTRY DEBT SINCE THE SECOND QUARTER AND A CONTINUED DECLINE IN THE COST OF CARRYING BAD REAL ESTATE COMMERCIALCREDIT COSTS FELL TO 233 MILLION FROM 297 MILLION IN THE SECOND QUARTER AND 521 MILLION IN THE YEAREARLIER PERIOD CONSUMER LOAN CHARGEOFFS ALSO FELL IT'S A FAIRLY DRAMATIC IMPROVEMENT SAID FRANK DESANTIS ANALYST AT DONALDSON LUFKIN & JENRETTE THE BANK'S TIER ONE EQUITY CAPITAL RATIO A KEY INDICATOR OF A BANK'S CAPITALIZATION EXCEEDED 6 FOR THE FIRST TIME MEANING IT IS NOW CONSIDERED A WELLCAPITALIZED BANK FOR REGULATORY PURPOSES EARNINGS FOR GLOBAL FINANCE ROSE SLIGHTLY AIDED BY CONTINUED STRONG REVENUE FROM TRADING CURRENCIES AND SECURITIES WHILE NET INCOME FOR THE GLOBAL CONSUMER UNIT JUMPED 41 FROM LAST YEAR'S 256 MILLION THOSE GAINS CAME FROM SOLID REVENUES IN DEVELOPING ECONOMIES THE COMPANY SAID BUT EXPENSES ALSO ROSE IN LINE WITH THE GROWTH IN REVENUE DISAPPOINTING SOME ON WALL STREET THE COMPANY SAID A HALFPOINT CUT IN THE PRIME RATE WOULD COST ABOUT 100 MILLION IN REVENUE BEFORE TAXES ASSUMING THE BANK DID NOTHING ELSE TO OFFSET THE DECLINE ON MONDAY JP MORGAN & CO LOWERED ITS PRIME RATE BUT NO BIG BANKS FOLLOWED BANC ONE'S THIRDQUARTER EARNINGS CAME IN AT OR A BIT BELOW ANALYSTS' ESTIMATES OF 83 CENTS A SHARE CHAIRMAN JOHN B MCCOY CITED RETAILLOAN GROWTH AND CONTINUED CREDITQUALITY IMPROVEMENT FOR WHAT HE DESCRIBED AS STRONG THIRDQUARTER RESULTS BANC ONE'S NET INTEREST MARGIN THE DIFFERENCE BETWEEN THE RATE BANKS EARN ON THEIR LOANS AND INVESTMENTS AND THE COST OF THEIR FUNDS WAS 622 FOR THE THIRD QUARTER COMPARED WITH 630 IN THE SECOND QUARTER AND 601 IN THE 1992 THIRD QUARTER NANCY BUSH AN ANALYST WITH BROWN BROTHERS HARRIMAN SAID BANC ONE'S EARNINGS MADE IT A VERY CLEAN QUARTER ONE OF THE BANK'S DULLEST NET INTEREST INCOME INCREASED IN THE QUARTER TO 101 BILLION REFLECTING WHAT THE BANK CALLED STRONG CONSUMERLOAN GROWTH WHICH OFFSET A DECLINE IN YIELDS ON INVESTMENT SECURITIES AND LOANS AVERAGE LOAN BALANCES 50 BILLION IN THE THIRD QUARTER UP FROM 487 BILLION IN THE SECOND QUARTER AND 456 BILLION IN THE 1992 THIRD QUARTER REPRESENTED AN ANNUALIZED GROWTH RATE OF 97 OVER 1992 AND 102 OVER THE 1993 SECOND QUARTER RETURN ON ASSETS WAS 152 DURING THE THIRD QUARTER COMPARED WITH 135 A YEAR BEFORE RETURN ON EQUITY WAS 174 IN THE QUARTER COMPARED WITH 167 A YEAR AGO BANC ONE BASED IN COLUMBUS OHIO WITH 7646 BILLION IN TOTAL ASSETS SAID NONPERFORMING ASSETS IN THE QUARTER DECLINED 83 MILLION OR 113 FROM JUNE 30 LEVELS WELLS FARGO'S THIRDQUARTER NET ROSE ALMOST SIXFOLD NEAR THE HIGH END OF ANALYSTS' EXPECTATIONS MOSTLY BECAUSE OF A HUGE REDUCTION IN ITS PROVISION FOR LOAN LOSSES THE PROVISION DROPPED TO 120 MILLION FROM THE YEAREARLIER 400 MILLION REFLECTING A SHARP DECLINE IN LOAN LOSSES AND A CONTINUING DECLINE IN NONPERFORMING ASSETS NET CHARGEOFFS OF LOANS FELL 54 TO 121 MILLION FROM 264 MILLION WHILE NONPERFORMERS DECREASED 29 TO 17 BILLION FROM 241 BILLION RETURN ON AVERAGE ASSETS INCREASED TO A ROBUST 129 FROM 018 A YEAR EARLIER AVERAGE LOANS SLID 15 TO 337 BILLION FROM 394 BILLION ANALYSTS APPLAUDED THE BANK'S IMPROVEMENT IN CREDIT QUALITY THEY'VE EMERGED FROM THIS TREMENDOUS REALESTATE RECESSION AS THE BEST COMMERCIAL LENDER SAID THOMAS K BROWN AN ANALYST AT DONALDSON LUFKIN & JENRETTE NET INTEREST INCOME DECREASED TO 656 MILLION FROM 670 MILLION A YEAR BEFORE NONINTEREST EXPENSE INCREASED 5 TO 535 MILLION FROM 508 MILLION LARGELY BECAUSE OF HIGHER PERSONNEL COSTS WELLS FARGO ALSO INCREASED ITS QUARTERLY DIVIDEND ON COMMON STOCK TO 75 CENTS A SHARE FROM 50 CENTS PAYABLE NOV 22 TO STOCK OF RECORD OCT 29 GABRIELLA STERN AND MICHAEL YBARRA CONTRIBUTED TO THIS ARTICLE 9310200103 931020 BUSINESS BRIEF ACE LTD INSURANCE FIRM OFFERS TO PAY 25 MILLION MORE FOR CODA ACE LTD SAID IT SWEETENED ITS OFFER TO ACQUIRE CORPORATE OFFICERS & DIRECTORS ASSURANCE HOLDING LTD BY ABOUT 25 MILLION THE HAMILTON BERMUDA COMPANY HAD ANNOUNCED PLANS TO BUY THE BERMUDABASED CODA FOR 250 MILLION IN AUGUST IN A TRANSACTION THAT WOULD COMBINE TWO OF THE LARGEST WRITERS OF CORPORATE DIRECTORS' AND OFFICERS' LIABILITY COVERAGE THE REVISED OFFER CALLS FOR AN ADDITIONAL PAYMENT TO CERTAIN SHAREHOLDERS OF AS MUCH AS 25 MILLION TO BE MADE DEC 31 FOLLOWING A REVIEW OF CODA'S LIABILITY IN RESPECT TO LOSS RESERVES AT JUNE 30 ALTHOUGH CERTAIN CONDITIONS TO CLOSING REMAIN ACE CHAIRMAN WALTER A SCOTT SAID THE ACQUISITION IS EXPECTED TO BE COMPLETE BY THE NOVEMBER TARGET ACE SHARES CLOSED AT 3250 UP 625 CENTS IN NEW YORK STOCK EXCHANGE TRADING 9310200102 931020 REVIEW & OUTLOOK EDITORIAL WORNOUT MACHINES IF YOU WANT TO SEE THE DAMAGE URBAN POLITICAL MACHINES HAVE DONE JUST VISIT A MAJOR CITY THAT'S RUN BY ONE AT ONE TIME MACHINES WOULD AT LEAST DELIVER EFFICIENT SERVICES IN EXCHANGE FOR THEIR MONOPOLY ON POWER BUT THESE DAYS THEY MOSTLY TAKE FROM THE TAXPAYERS AND GIVE BACK LITTLE BUT MANY URBAN MACHINES ARE NOW ON THE ROPES EARLIER THIS YEAR JERSEY CITY NJ VOTERS THREW OUT OF OFFICE THE INFAMOUS 76YEAROLD MACHINE FOUNDED BY FRANK I AM THE LAW HAGUE COLEMAN YOUNG THE AUTOCRATIC RACIALLY DIVISIVE BOSS OF DETROIT DECLINED TO RUN FOR A SIXTH TERM THIS YEAR HIS HANDPICKED CANDIDATE WON ONLY 12 IN THE RACE TO SUCCEED HIM THE LISTLESS SUPPORT FOR THE CANDIDACY OF MAYOR DAVID DINKINS SPELLS TROUBLE FOR NEW YORK CITY'S DEMOCRATIC MACHINE BUT NOT ALL MACHINES ARE RUN BY DEMOCRATS THE PREMIER SUBURBAN REPUBLICAN MACHINE IS IN NASSAU COUNTY NY AND IT TOO IS FACING A SERIOUS CHALLENGE THE NASSAU MACHINE BEGAN IN 1936 WHEN THE GOP CONVINCED VOTERS TO CONCENTRATE POWER IN A SINGLE COUNTY EXECUTIVE THE PARTY WAS A BIG WINNER AFTER DEVELOPER WILLIAM LEVITT CAME TO LONG ISLAND IN 1947 AND OFFERED EXGI'S CAPE CODSTYLE SUBURBAN HOMES FOR 9500 THE NEW VOTERS DECIDED THE REPUBLICAN PARTY WAS WHERE THE ACTION WAS BY THE 1970S NASSAU HAD 143 MILLION PEOPLE AND WAS EFFECTIVELY RUN BY ONE MAN JOE MARGIOTTA THE COUNTY'S GOP CHAIRMAN IN 1980 HIS PROTEGE AL D'AMATO WAS ELECTED US SENATOR HOWEVER THE LAST DECADE HASN'T BEEN KIND TO THE MACHINE MR MARGIOTTA WAS CONVICTED FOR MAKING POLITICAL PAYOFFS AND THE MACHINE WAS PASSED ON TO LESSER LIGHTS THE HIGHEST PROPERTY TAXES IN THE COUNTRY WERE LEVIED TO SUPPORT A BLOATED COUNTY WORK FORCE AND A SCHOOL SYSTEM WHERE DOZENS OF ADMINISTRATORS MAKE SIXFIGURE SALARIES THE COUNTY HAS LOST 10 OF ITS POPULATION OVER THE PAST 20 YEARS AS CHILDREN FOUND THEY COULDN'T AFFORD TO LIVE NEAR THEIR PARENTS BY 1991 THE HIGHER TAXES HAD CHASED ENOUGH BUSINESSES AND TAXPAYERS AWAY TO CREATE A 130 MILLION COUNTY DEFICIT ANGRY VOTERS REBELLED IN 1992 GIVING A PLURALITY VICTORY TO BILL CLINTON AND NEARLY HANDING BOTH OF NASSAU'S CONGRESSIONAL SEATS TO DEMOCRATS NOW BENJAMIN ZWIRN A DEMOCRAT WHO LEFT THE GOP IN 1987 HAS A CHANCE TO BECOME THE NASSAU COUNTY EXECUTIVE MR ZWIRN IS A FORMER SNACKFOOD COMPANY PRESIDENT WHO WON AN UPSET VICTORY TO BECOME SUPERVISOR OF NORTH HEMPSTEAD IN 1989 SINCE THEN HE HAS INFURIATED REPUBLICANS BY ZEROING OUT OVER A QUARTER OF HIS TOWN'S GOVERNMENT PAYROLL INCLUDING SOME NOSHOW PATRONAGE POSITIONS MR ZWIRN CLAIMS HE'S A GENUINE NEW DEMOCRAT WHO WILL CUT TAXES AND DOWNSIZE PRIVATIZE AND ECONOMIZE COUNTY GOVERNMENT THOMAS GULOTTA THE REPUBLICAN INCUMBENT SAYS MR ZWIRN IS A CLOSET TAXRAISER BUT HIS OWN CREDIBILITY IS LIMITED GIVEN HIS PAST WILLINGNESS TO RAISE TAXES IN BROAD DAYLIGHT THE LOCAL CONSERVATIVE PARTY HAS ENDORSED MR GULOTTA BUT IT ALSO BRAGS IN ITS NEWSLETTER THAT THE GOP MACHINE HAS DELIVERED DOZENS OF PATRONAGE JOBS TO PARTY MEMBERS LIKE MANY POLITICAL OUTSIDERS MR ZWIRN CAN BE TEMPERAMENTAL AND IMPATIENT NO ONE KNOWS IF HE CAN REALLY DELIVER ON HIS PLEDGE TO REFORM NASSAU COUNTY GOVERNMENT WHAT'S NOT IN DOUBT IS THAT THE COUNTY THAT GAVE PORKBARRELER AL D'AMATO KNOWN IN WASHINGTON AS SENATOR POTHOLE HIS POLITICAL START IS CLEARLY IN A DEEP HOLE DUG BY A MACHINE 9310200099 931020 SHIPLEY TO BE CHAIRMAN OF CHEMICAL MILLER PRESIDENT 3RDPERIOD NET SOARED BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MAINTAINING A DELICATE BALANCE IN MANAGEMENT SUCCESSION CHEMICAL BANKING CORP NAMED WALTER SHIPLEY CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND EDWARD P MILLER A FORMER RETAIL BANKER FROM MANUFACTURERS HANOVER CORP AS PRESIDENT MR SHIPLEY HAD BEEN EXPECTED TO SUCCEED JOHN MCGILLICUDDY WHO IS RETIRING AS PLANNED AT YEAR END BUT THE MOVE TO TAP MR MILLER SIGNALS THAT THE COMPANY IS STILL MAINTAINING THE DIPLOMATIC SPLIT BETWEEN EXECUTIVES OF MANUFACTURERS HANOVER AND CHEMICAL WHICH MERGED IN 1991 TO CREATE THE NATION'S THIRDLARGEST BANK MR SHIPLEY 57 CURRENTLY IS PRESIDENT OF CHEMICAL HE HAD BEEN CHAIRMAN AND CHIEF EXECUTIVE OF CHEMICAL BEFORE THE MERGER MR MILLER 52 IS NOW CHEMICAL'S VICE CHAIRMAN THE COMPANY ALSO ANNOUNCED THIRDQUARTER EARNINGS OF 502 MILLION OR 184 A SHARE WELL ABOVE ANALYSTS' ESTIMATES BUT HELPED BY TAX BENEFITS AND OTHER NONRECURRING ITEMS THOUGH THE COMPANY HAD SUPERB OPERATING FIGURES WALL STREET WAS DISAPPOINTED THAT IT TOOK AN ADDITIONAL 115 MILLION IN PRETAX CHARGES RELATED TO THE MERGER UNLIKE MR SHIPLEY MR MILLER HASN'T BEEN PROMISED THE CHIEF EXECUTIVE'S POST LEADING TO SPECULATION INSIDE CHEMICAL ABOUT WHICH PREMERGER BANK WILL ULTIMATELY DOMINATE THE MERGED COMPANY MR SHIPLEY AND WILLIAM HARRISON A 50YEAROLD VICE CHAIRMAN WHO HAD BEEN A CONTENDER FOR THE PRESIDENT'S POST ARE CONSIDERED LEADING CEO CANDIDATES I DON'T THINK THIS ESTABLISHES A CLEAR NO 2 SAID FRANK DESANTIS BANKING ANALYST AT DONALDSON LUFKIN & JENRETTE IT'S STILL A HORSE RACE MR MILLER IS A NEW YORK NATIVE WHO ROSE THROUGH THE RETAIL BRANCH NETWORK AT MANUFACTURERS HANOVER AND BUILT THE COMPANY'S CREDITCARD OPERATION FOLLOWING THE MERGER HE WAS PUT IN CHARGE OF CHEMICAL'S REGIONAL BANKING BUSINESSES MR HARRISON A WELLRESPECTED CORPORATE BANKER FROM THE PREMERGER CHEMICAL WHO PUT TOGETHER THE INDUSTRY'S TOP LOANSYNDICATIONS EFFORT WILL CONTINUE TO OVERSEE GLOBAL BANKING HE IS ALSO A MEMBER OF THE OFFICE OF THE CHAIRMAN ALONG WITH MESSRS SHIPLEY AND MILLER YESTERDAY MR SHIPLEY BRISTLED AT SPECULATION ABOUT A SUCCESSOR AND SAID MR MILLER WASN'T TAPPED BECAUSE OF POLITICAL REASONS HE ALSO SAID THE APPOINTMENT DOESN'T SIGNAL THAT THE BANK WILL EMPHASIZE RETAIL OVER CORPORATE BANKING WE'RE A BALANCED INSTITUTION WITH TWO BROAD BUSINESS SETS SAID MR SHIPLEY REGARDING THE SUCCESSION ISSUE HE ADDED I'M 57 YEARS YOUNG WITH A LOT OF ENERGY THE STOCKY CIGARSMOKING MR MCGILLICUDDY WHO IS 62 YEARS OLD WILL REMAIN A DIRECTOR BY MERGING MANUFACTURERS HANOVER WHERE HE SPENT HIS 35YEAR CAREER WITH CHEMICAL HE RESUSCITATED HIS REPUTATION AND THE BANK'S FORTUNES THERE WAS INITIAL SKEPTICISM ABOUT MERGING TWO NEW YORK GIANTS IN 1991 BOTH BANKS WERE SUFFERING FROM HIGH DEBT LOADS AND WEREN'T KNOWN FOR AGGRESSIVE COSTCUTTING IN EARLY 1992 THE STOCK OF THE NEW CHEMICAL SANK TO AROUND 18 A SHARE AS INVESTORS QUESTIONED WHETHER THE TWO COMPANIES COULD SUCCESSFULLY MERGE THEIR BANKS AND THEIR CORPORATE CULTURES MR MCGILLICUDDY AND HIS MANAGEMENT TEAM PROVED SKEPTICS WRONG NOTWITHSTANDING YESTERDAY'S CHARGES THE BANK HAS RECEIVED HIGH MARKS FOR BEING ONE OF THE BEST MERGERS OF EQUALS THE NEW CHEMICAL IS THE LEADER IN CORPORATE LOAN SYNDICATIONS AND HAS EMERGED AS A STRONG FORCE TRADING AND SELLING CURRENCY AND DERIVATIVE PRODUCTS ITS MIDDLEMARKET LENDING OPERATIONS IS THE DOMINANT PLAYER IN NEW YORK AND IT HAS A STRONG RETAIL PRESENCE IN NEW YORK AND THE ENVIRONS THE SHARE PRICE OF CHEMICAL HAS MORE THAN DOUBLED CLOSING YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT 40875 MR SHIPLEY SAID THE BANK'S BASIC STRATEGY WON'T CHANGE MR MCGILLICUDDY AN AVID GOLFER WHO EPITOMIZES THE OLDSTYLE RELATIONSHIP BANKER GOES OUT ON A HIGH SAID WINDLE PRIEM MANAGING DIRECTOR AT KORN/FERRY INTERNATIONAL AN EXECUTIVERECRUITING FIRM THEY'LL MISS THE WAY HE HANDLES CUSTOMERS BOY HE'S SURE A GREAT SCHMOOZER THE COMPANY'S EARNINGS WHICH COMPARED WITH YEAREARLIER PROFIT OF 282 MILLION OR 98 CENTS A SHARE WERE HELPED BY STRONG REVENUE IN TRADING ACTIVITIES AND CORPORATE FINANCE FEES NONPERFORMING ASSETS FELL BY A STAGGERING 731 MILLION SINCE THE SECOND QUARTER AND THE PROVISION FOR LOAN LOSSES DROPPED TO 298 MILLION FROM 363 MILLION IN THE PREVIOUS QUARTER AND 330 MILLION A YEAR AGO BUT THE STOCK'S PRICE FELL YESTERDAY TO 40875 OFF 875 CENTS BECAUSE OF THE ONETIME CHARGES EXPECTATIONS WERE A LITTLE LOFTY SAID MR DESANTIS ADDING ALL IN ALL IT WAS A GOOD QUARTER 9310200098 931020 A DETOUR ON THE INFORMATION SUPERHIGHWAY BY BRIAN MILLER BELL ATLANTIC'S PLAN TO ACQUIRE TELECOMMUNICATIONS INC IN A STOCK TRANSACTION VALUED AT MORE THAN 16 BILLION HELPS TO MAKE THE CASE FOR NAMING TELECOMMUNICATIONS AS THE FASTEST GROWING AND MOST IMPORTANT STRATEGIC INDUSTRY IN AMERICA NEW PRODUCTS AND SERVICES ARE CONSTANTLY BEING INVENTED BUT MISGUIDED STATE TAX POLICIES AROUND THE COUNTRY PROMOTED BY AUTHORITIES WHO VIEW THE INFORMATION SUPERHIGHWAY AS SIMPLY ANOTHER SOURCE OF REVENUE THREATEN TO UNDERMINE THE GROWTH OF THE MANY SMALLFRY BUSINESSES THAT PROVIDE THESE SERVICES MY WIFE'S AND MY EXPERIENCE WITH OUR ONLINE INFORMATIONSERVICE COMPANY IN MASSACHUSETTS IS ONE EXAMPLE PEOPLE SUBSCRIBE TO OUR SERVICE TO GET ACCESS TO ELECTRONIC MAIL AND COMPUTER BULLETIN BOARDS TO DOWNLOAD PUBLICDOMAIN PROGRAMS FROM OUR LIBRARY AND TO PLAY COMPUTER GAMES THEY DIAL IN OVER ORDINARY PHONE LINES USING A PERSONAL COMPUTER AND A MODEM WE DON'T CHARGE OUR CUSTOMERS SALES TAX BECAUSE OUR STATE LAW SAYS WE DON'T HAVE TO THERE IS A TAX ON TELECOMMUNICATION SERVICES WHICH THE LAW NARROWLY DEFINES AS SERVICES THAT PROVIDE FOR THE TRANSMISSION OF MESSAGES THROUGH MICROWAVE WIRE OR FIBEROPTIC CABLE BUT THE LAW SPECIFICALLY EXEMPTS THE SALE OR USE OF INFORMATION SO IN A TRANSFER OF INFORMATION WHERE A FEE IS PAID THE TRANSMISSION PORTION OF THE FEE IS TAXABLE BUT THE INFORMATION ITSELF ISN'T THIS MEANS OUR CUSTOMERS PAY STATE SALES TAX ON THEIR PHONE BILLS WHEN THEY DIAL IN TO US BUT NOT ON THE SERVICES WE SELL THEM TO OUR AMAZEMENT MASSACHUSETTS DECIDED AFTER A RECENT AUDIT THAT WE POTENTIALLY OWE BACK TAXES ON ALL OF OUR SUBSCRIBER BILLINGS AS IT INTERPRETS THE LAW WHENEVER ONE OF OUR SUBSCRIBERS LEAVES AN ELECTRONIC NOTE ON A BULLETIN BOARD THIS CONSTITUTES THE TRANSMISSION OF A MESSAGE AND IS SUBJECT TO A 5 STATE SALES TAX THE ASSESSMENT COULD AMOUNT TO MORE THAN 150000 AND WOULD PUT US OUT OF BUSINESS OTHER TECHNOLOGYBASED BUSINESSES ACCESSING INFORMATION VIA TELEPHONE MODEM ARE ALSO SUBJECT TO SIMILARLY TENUOUS INTERPRETATIONS OF STATE TAX LAW TO JUSTIFY WHAT AMOUNTS TO A DE FACTO MODEM TAX IS THE STATE QUIETLY TRYING TO SET PRECEDENTS TO ALLOW IT TO EXPAND THIS SALES TAX INTO INFORMATION SERVICES SOME STATES INCLUDING NEW YORK FLORIDA AND PENNSYLVANIA HAVE EITHER ALREADY INSTITUTED SIMILAR TAXES OR ARE CONSIDERING THEM DEMONSTRATING A WOEFUL LACK OF UNDERSTANDING OF THE EFFECTS OF SALES TAXES ON BUSINESSES THAT SELL ONLINE OR OTHER INFORMATION SERVICES FOR THE TAX WONKS AROUND THE COUNTRY WE'D LIKE TO EXPLAIN WHAT A MODEM TAX WOULD DO TO OUR BUSINESS ONLINE INFORMATIONSERVICE FEES ARE BASED ON HOW LONG THE USER IS LOGGED ON AND HOW MUCH INFORMATION IS TRANSFERRED BECAUSE WE USE MODEMS THAT ARE ALMOST TWICE AS FAST AS THOSE OF OTHER ONLINE SERVICES OUR SUBSCRIBERS HAVE MUCH SHORTER CONNECT TIMES AND LOWER CONNECT COSTS THAN THEY WOULD FOR THE SAME TRANSACTION WITH A COMPETITOR WHEN THIS IS FACTORED INTO THE TOTAL BILL IT GIVES US ENOUGH OF A COST ADVANTAGE IN OUR PARTICULAR NICHE TO ALLOW US TO COMPETE WITH THE LARGE NATIONAL ONLINE SERVICES RAISING OUR PRICES 5 TO PAY FOR A STATE SALES TAX WOULD CUT SIGNIFICANTLY INTO OUR COST ADVANTAGE AND WE WOULD LOSE CUSTOMERS AT A TIME WHEN THE LARGE NATIONAL SERVICES WITH ECONOMIES OF SCALE THAT WE CAN'T MATCH ARE LOWERING THEIR PRICES TO COMPETE WITH EACH OTHER WE CAN'T AFFORD TO RAISE OURS ALTERNATIVELY WE COULD KEEP PRICES THE SAME AND PAY THE SALES TAX OURSELVES BUT PROFIT MARGINS FOR SMALL ONLINE SERVICES LIKE OURS ARE TYPICALLY LESS THAN 10 SO ABSORBING THE TAX WOULD BE THE SAME AS SIGNING OVER HALF OUR NET PROFITS JUST TO STAY COMPETITIVE THERE IS A THIRD OPTION BUT IT WOULD HAVE US MOVE OUR BUSINESS ITS CURRENT AND FUTURE JOBS TO NEIGHBORING NEW HAMPSHIRE WHERE WE WOULDN'T HAVE THIS PROBLEM FOR NOW THIS DEMONSTRATES THE BASIC MISTAKE MANY GOVERNMENT TAX ANALYSTS MAKE TO THEM EVERY NEW AND GROWING INDUSTRY IS A STABLE SOURCE OF CASH FROM WHICH THEY CAN EXTRACT TAX REVENUES WITHOUT DISTURBING THE MARKET THAT INDUSTRY SERVES BUT IT DOESN'T WORK THAT WAY THE ECONOMY OF THIS COUNTRY IS BASED ON FREE MARKETS AND FREE MARKETS ARE RUTHLESSLY EFFICIENT AS CONSUMERS CONSTANTLY MAXIMIZE THEIR OWN BENEFIT BY FINDING THE BEST PRODUCTS AT THE BEST PRICES SO EVEN WHAT APPEARS TO BE A SMALL TAX INCREASE ON A PARTICULAR INDUSTRY OFTEN HAS THE EFFECT OF DISTORTING THAT INDUSTRY ELIMINATING JOBS AND BUSINESSES IN THE PROCESS AND REDUCING THE TAX REVENUES THE GOVERNMENT USED TO JUSTIFY THE TAX IN THE FIRST PLACE THE TELECOMMUNICATIONS INDUSTRY IS PROJECTED TO GROW FROM 700 BILLION WORLDWIDE TODAY TO 3 TRILLION IN THE NEXT DECADE BUT IF STATES ARE TO SUCCEED AT TAPPING INTO THE BONANZA OF JOBS AND PROFITS THE TELECOMMUNICATIONS INDUSTRY IS ABOUT TO DELIVER LAWMAKERS NEED TO UNDERSTAND THAT ECONOMIC GROWTH DOESN'T HAPPEN IN AN ENVIRONMENT OF PUNITIVE TAX RATES AND AN ADVERSARIAL TAX COLLECTION SYSTEM MR MILLER AND HIS WIFE TESS OWN AND OPERATE CHANNEL 1 IN CAMBRIDGE MASS 9310200097 931020 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED EQUAL TO 90 OR MORE OF SHARES SOLD SHOLDS OTHER CLASS OF STOCK XREFLECTS SHARES HELD INDIRECTLY LATE FILING BASE PERIOD IS LESS THAN 3 YEARS CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER BOUGHT OR SOLD DURING THE LAST 12 WEEKS EXPRESSED AS A PERCENTAGE CHANGE OF ONLY THEIR HOLDINGS AT THE START OF THE PERIOD REFLECTS COMPANIES FOR WHICH FILINGS MADE LAST WEEK SHOWED SOME INSIDER ACTIVITY DURING THE LATEST 12 WEEKS EXCLUDED COMPANIES WITH TOTAL TRADES VALUED UNDER 75000 OPTIONRELATED SALES COMPANIES WITH FEWER THAN THREE BUYERS OR SELLERS OR FEWER BUYERS OR SELLERS THAN THE HISTORICAL AVERAGE FOR THE PERIOD 9310200096 931020 RULE OF LAW THE IRRATIONAL ANTITRUST CASE AGAINST WALMART BY BLANT HURT ANNE BINGAMAN AN ASSISTANT ATTORNEY GENERAL IN THE CLINTON ADMINISTRATION HAS VOWED TO BRING ANTITRUST ENFORCEMENT BACK INTO VOGUE MEANWHILE IN ARKANSAS JUDGE DAVID REYNOLDS OF CHANCERY COURT IN CONWAY HAS BEATEN HER TO THE PUNCH LAST WEEK JUDGE REYNOLDS FOUND WALMART GUILTY OF PREDATORY PRICING UNDER THE ARKANSAS UNFAIR TRADE PRACTICES ACT OF 1937 AMERICAN DRUGS INC ET AL V WALMART STORES INC HE ORDERED AMERICA'S LARGEST RETAILER TO PAY TREBLE DAMAGES OF 296407 TO THREE CONWAY PHARMACISTS JUDGE REYNOLDS APPOINTED BY THENGOVERNOR CLINTON IN 1989 SAID I DON'T KNOW HOW MUCH IMPACT THIS DECISION WILL HAVE BEYOND ARKANSAS ACTUALLY IF HIS DECISION IS UPHELD BY THE ARKANSAS SUPREME COURT THE RIPPLE EFFECT COULD BE LARGE 22 OTHER STATES HAVE SIMILAR BELOWCOST PRICING STATUTES AT THE FEDERAL LEVEL THERE IS A SUBSTANTIAL BODY OF ANTITRUST CASE LAW DISCOURAGING SUCH PREDATORY PRICING LAWSUITS THE MOST RECENT BEING THE UNSUCCESSFUL CASE AGAINST AMERICAN AIRLINES FOR SLASHING FARES HARVARD LAW PROFESSOR PHILLIP AREEDA NOTES IF THE WALMART CASE WERE A FEDERAL CASE IT PROBABLY WOULD HAVE BEEN REJECTED ON THE BASIS THAT THE ALLEGED PREDATOR COULD NOT HAVE DRIVEN OUT ALL COMPETITORS EVEN IF IT DID AND THEN RAISED ITS PRICES TO THE LEVEL OF A MONOPOLIST IT WOULD INVITE OTHER COMPETITORS MR AREEDA AND HARVARD LAW ASSOCIATE DONALD TURNER BROKE NEW GROUND IN 1975 WITH THEIR AVERAGE VARIABLE COST RULE FOR PREDATORY PRICING LAWSUITS THEIR AVC RULE HELD THAT THE LEGAL PRICE FOR A FIRM WAS ITS MARGINAL COST RATHER THAN THE TOTAL COST CRITICS DEEMED THE AVC RULE A MONOPOLIST'S HEAVEN WHERE WOLVES ARE MISTAKEN FOR SHEEP BEYOND THE AVC RULE LURKS A PHILOSOPHICAL QUESTION CAN A PRICEGOUGING MONOPOLIST EMERGE IN A FREE MARKETPLACE PARTICULARLY ONE WITH LOW BARRIERS TO ENTRY SUCH AS RETAILING PHARMACEUTICALS THIS QUESTION IS CRITICAL BECAUSE WALMART CONCEDES THAT IT SOLD SOME PHARMACEUTICALS IN CONWAY AT PRICES BELOW REPLACEMENT COST THE FEDERAL COURTS HAVE INTERPRETED PREDATORY PRICING STATUTES BROADLY ON THE GROUNDS THAT THERE IS INSUFFICIENT EVIDENCE THAT BELOWCOST PRICING HURTS COMPETITION THIS NONENFORCEMENT HAS GIVEN BUSINESS MORE FREEDOM TO COMPETE ON PRICES IN RESPONSE PLAINTIFFS IN PREDATORY PRICING LAWSUITS ARE INCREASINGLY TURNING TO STATE COURTS IN HOPES OF DRAWING UPON A DIFFERENT PHILOSOPHICAL TRADITION IN THEIR MARCH 3 BRIEF WALMART PLAINTIFFS CITE JUSTICE LOUIS BRANDEIS WHO WROTE LET AMERICANS BE UNDER NO ILLUSION AS TO THE VALUE OF PRICE CUTTING IT IS THE MOST POTENT WEAPON OF MONOPOLY THOSE WHO SUCCUMB TO ITS WILES ARE THOUGHTLESS OR WEAK BUT THEY ARE SELLING THEIR BIRTHRIGHT FOR A MESS OF POTTAGE CONTRARY TO BRANDEIS'S CLAIM ARKANSAS CONSUMERS HAVE NOT GOTTEN A MESS OF POTTAGE FROM WALMART'S PRACTICE OF BELOWCOST PRICING IN AN ERA OF ESCALATING DRUG PRICES THE RETAILER HAS LURED CUSTOMERS WITH ITS OFFER TO LET US LIBERATE YOU FROM HIGH DRUG PRICES THIS PROMOTIONAL CAMPAIGN ACCOMPANIED BY A FREE PRESCRIPTION OF UP TO 5 IS CITED BY WALMART PLAINTIFFS AS EVIDENCE OF BAD FAITH IN FACT FREE ENTERPRISE IN CONWAY HELPED KEEP PRICES DOWN ON MEDICATIONS FOR DIABETES HIGH BLOOD PRESSURE IRREGULAR HEARTBEAT AND ULCERS AND YET THIS LIBERATION OF CONSUMERS HAS BEEN DECLARED ILLEGAL BEHAVIOR BY AN ARKANSAS JUDGE WHO AS A CONDITION OF HIS JUDICIAL CANDIDACY IN 1990 SIGNED AN OATH OF LOYALTY TO ARKANSAS' DEMOCRATIC PARTY MEANWHILE THE CLINTON ADMINISTRATION'S SABERRATTLING ABOUT GOVERNMENT CAPS ON DRUG PRICES IS BEING HAILED AS ENLIGHTENED POLICY MAKING AND WHAT ABOUT THE EFFECTS OF WALMART'S BELOWCOST PRICING ON ITS COMPETITORS WALMART BEGAN SELLING PHARMACEUTICALS IN CONWAY IN 1987 ACCORDING TO AFFIDAVITS THE THREE CONWAY PLAINTIFFS AMERICAN DRUG BAKER DRUG AND FAMILY DRUG SAW THEIR COMBINED GROSS MARGINS INCREASE TO 292 IN 1990 FROM 249 IN 1986 FURTHERMORE IN 1987 THERE WERE 12 PHARMACIES IN CONWAY TODAY ALL 12 REMAIN AND TWO HARVEST FOODS AND FRED'S HAVE BEEN ADDED THE NUMBER OF PHARMACISTS IN FAULKNER COUNTY WHERE CONWAY IS LOCATED INCREASED TO 58 IN 1992 FROM 38 IN 1987 THE AFFIDAVIT OF J CONRAD CARROLL A PROFESSOR OF MARKETING AT THE UNIVERSITY OF CENTRAL ARKANSAS CONCLUDES THE FAULKNER COUNTY MARKETPLACE SEEMS TO BE ALIVE WELL AND MAXIMIZING CONSUMER WELFARE THROUGH A GREATER VARIETY OF FIRMS AND MORE EFFICIENT OPERATIONS IN RESPONSE WALMART PLAINTIFFS DISMISS CURRENT AND HISTORICAL MARKET CONDITIONS IN CONWAY AS IRRELEVANT DRAWING ON THE BRANDEIS TRADITION THEY NOTE THE INHERENTLY DANGEROUS LONGTERM CONSEQUENCES OF BELOWCOST PRICING MEANS THAT PROOF OF A BREAKDOWN IN THE MARKETPLACE IS NOT REQUIRED THE INTENT BEHIND PRICE CUTTING CAN BE INFERRED AND THUS THE STATUTES MUST BE ENFORCED BEFORE COMPETITION IS ELIMINATED ABSENT EVIDENCE OF DAMAGE TO COMPETITORS JUDGE REYNOLDS NOTES THESE INFERENCES AND CITES OTHER CIRCUMSTANTIAL EVIDENCE THE ESSENCE OF THIS LEGAL REASONING IS THAT THE COURTS MUST INFER WALMART'S INTENT AND FORCE IT TO RAISE PRICES NOW OR CONSUMERS WILL SURELY GET THEIR MESS OF POTTAGE LATER THIS BEGS THE CRUCIAL QUESTION OF WHETHER A COERCIVE MONOPOLY IS POSSIBLE IN A FREE MARKET IF IT'S NOT THEN JUDGE REYNOLDS IS PROTECTING LESS COMPETITIVE PHARMACISTS AND CONSUMERS WILL PAY HIGHER DRUG PRICES FOR NO REASON WHILE CONTENDING THAT THEY AREN'T VIKLATING ANY STATE STATUTES WALMART ATTORNEYS CITE PRECEDENTS ESTABLISHING A CONSISTENT INTERPRETATION OF THE FEDERAL ROBINSONPATMAN ACT AND VARIOUS UNFAIR PRACTICE ACTS IN OTHER STATES NOTING THAT THE STATUTES WERE CREATED IN THE SAME NEW DEAL ATMOSPHERE HOWEVER IF HE WALMART VERDICT STANDS THIS CASE WILL SHOW THAT THE FEDERAL AND STATE STATUTES CAN BE USED TO ARRIVE AT DIFFERENT OUTCOMES IN PREDATORY PRICING LAWSUITS SUCH ARBITRARINESS IS A HALLMARK OF VIRTUALLY ALL ANTITRUST LAWS AND IT'S THIS UNPREDICTABILITY THAT BEDEVILS AMERICAN MANAGERS OTHER RETAILERS SHOULD BEWARE IN A DEPOSITION WALMART'S PHARMACY MANAGER RICHARD WALKER NOTED THAT WALMART'S PRACTICES WERE THE SAME AS HIS PREVIOUS EMPLOYERSKMART REVCO AND SKILLERNS A NOWDEFUNCT DALLAS CHAIN IN A 1961 ESSAY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN WROTE THE ENTIRE STRUCTURE OF ANTITRUST STATUTES IN THIS COUNTRY IS A JUMBLE OF ECONOMIC IRRATIONALITY AND IGNORANCE TANGLED UP IN THIS ANTITRUST CRAZYQUILT ROBERT K RHOADS WALMART'S GENERAL COUNSEL NOTES THE PLAINTIFFS CLAIM MAKES NO ECONOMIC SENSE AMERICAN CAPITALISTS AND CONSUMERS CAN ONLY HOPE THAT THEY ARE SPARED MORE ANTITRUST IRRATIONALITY MR HURT IS A LITTLE ROCK BUSINESSMAN AND A COLUMNIST FOR ARKANSAS BUSINESS 9310200095 931020 BUSINESS BRIEF OWENS & MINOR INC MEDICALSUPPLY FIRM POSTS 21 RISE IN 3RDQUARTER NET OWENS & MINOR INC SAID THIRDQUARTER PROFIT GREW 21 AS NEW DISTRIBUTION CENTERS BOLSTERED SALES THE RICHMOND VA MEDICAL AND SURGICAL SUPPLIES DISTRIBUTOR SAID NET INCOME TOTALED 48 MILLION OR 23 CENTS A SHARE UP FROM 4 MILLION OR 20 CENTS A SHARE REVENUE ALSO GREW 21 TO 362 MILLION FROM 300 MILLION HELPED BY NEW CENTERS IN DETROIT BIRMINGHAM ALA YOUNGSTOWN OHIO AND BOSTON ALL OPENED IN THE SECOND AND THIRD QUARTERS OWENS & MINOR SAID IT ALSO WAS ABLE TO INCREASE SALES TO EXISTING ACCOUNTS 9310200094 931020 PEPPERAND SALT IS SWIMMING INTO OUR KEN A NEW INSTRUMENT CALLED THE PEN FIND OUT I'M OVERDRAWN 9310200093 931020 CLINTON SETS PLAN TO HELP REDUCE GLOBAL WARMING BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION SAID ITS PLAN TO REDUCE EMISSIONS OF GASES THAT INCREASE GLOBAL WARMING WILL REQUIRE NO NET INCREASE IN GOVERNMENT SPENDING THE LARGELY VOLUNTARY PLAN WHICH WAS UNVEILED YESTERDAY AT A WHITE HOUSE CEREMONY PLEDGES 19 BILLION IN NEW AND REDIRECTED SPENDING BETWEEN 1994 AND THE YEAR 2000 BUT THE BULK OF THAT SPENDING OFFICIALS SAY WILL BE ACHIEVED BY SHIFTING MONEY FROM EXISTING PROGRAMS AND ANY NEW SPENDING WILL BE OFFSET BY SPENDING CUTS AT A BRIEFING AFTER THE WHITE HOUSE CEREMONY ENERGY SECRETARY HAZEL O'LEARY SAID HER DEPARTMENT INTENDS TO SPEND 222 MILLION ANNUALLY STARTING NEXT YEAR TO IMPLEMENT THE PLAN BUT SHE ADDED I FULLY EXPECT TO TAKE THAT OUT OF MY OWN HIDE MEANWHILE THE ENVIRONMENTAL PROTECTION AGENCY PLANS TO INCREASE ANNUAL SPENDING ON EXISTING ENERGYEFFICIENCY PROGRAMS BY 65 MILLION OF WHICH 50 MILLION WOULD BE DIVERTED FROM OTHER PROGRAMS ACCORDING TO AN EPA OFFICIAL TWO PROVISIONS IN THE GREENHOUSE PLAN ADMINISTRATION OFFICIALS SAID WILL INCREASE RATHER THAN DEPLETE FEDERAL REVENUES ONE IS A PROPOSAL TO REQUIRE EMPLOYERS WHO RECEIVE TAX BREAKS FOR PROVIDING THEIR EMPLOYEES FREE PARKING TO OFFER THE CASH EQUIVALENT AS WELL IT IS EXPECTED THE REQUIREMENT WOULD PROMPT A NUMBER OF EMPLOYERS TO STOP SEEKING THE TAX BREAKS THE OTHER WOULD ALLOW PRIVATE INVESTMENT IN EXISTING FEDERAL HYDROELECTRIC FACILITIES IN EXCHANGE FOR LEASE PAYMENTS THE ADMINISTRATION ESTIMATES THESE PROPOSALS IF APPROVED BY CONGRESS WOULD INCREASE FEDERAL REVENUES BY 27 BILLION BETWEEN 1994 AND 2000 BOTH PRESIDENT CLINTON AND VICE PRESIDENT GORE EMPHASIZED THE SERIOUSNESS OF THE GLOBALWARMING PROBLEM WHICH MR GORE TERMED THE HIGHESTRISK ENVIRONMENTAL PROBLEM THE WORLD FACES TODAY BUT THE PLAN THEY UNVEILED DOESN'T INCLUDE TOUGH MEASURES THE ADMINISTRATION CONSIDERED AT ONE TIME OR ANOTHER SUCH AS A BROADBASED ENERGY TAX OR AN INCREASE IN AUTOMOBILE FUELEFFICIENCY STANDARDS INSTEAD THE PLAN RELIES MAINLY ON VOLUNTARY AGREEMENTS SUCH AS A NEW MOTOR CHALLENGE PROGRAM IN WHICH INDUSTRIES WILL WORK WITH THE ENERGY DEPARTMENT TO INCREASE USE OF ENERGYEFFICIENT ELECTRIC MOTORS I WANT TO REMIND YOU THAT VOLUNTARY' IS NOT A DIRTY WORD MS O'LEARY SAID AT YESTERDAY'S BRIEFING 9310200092 931020 ECONOMY CLINTON TO SEEK 75CENT INCREASE IN CIGARETTE TAX SOME LAWMAKERS PRESSURED PRESIDENT TO RETREAT FROM BACKING A 1 RISE BY JEFFREY H BIRNBAUM AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON HAS SETTLED ON AN INCREASE IN THE CIGARETTE TAX OF 75 CENTS A PACK TO HELP PAY FOR HIS PROGRAM TO OVERHAUL THE NATION'S HEALTHCARE SYSTEM THE DECISION REPRESENTS A RETREAT FROM THE 1APACK INCREASE THE WHITE HOUSE HAD ONCE CONTEMPLATED THE NEW LOWER FIGURE IS A BOW TO THE STRENGTH OF THE TOBACCO LOBBY AND THE LAWMAKERS WHO REPRESENT TOBACCOGROWING REGIONS PARTICULARLY NORTH CAROLINA ACCORDING TO GOVERNMENT ESTIMATES A 75CENT INCREASE WOULD RAISE ABOUT 12 BILLION A YEAR ABOUT 4 BILLION A YEAR LESS THAN A 1 BOOST AT A MEETING MONDAY THE PRESIDENT'S TOP ADVISERS STRONGLY RECOMMENDED THAT HE ALSO CONSIDER ALLOWING THE TAX TO RISE ANNUALLY AT THE COUNTRY'S INFLATION RATE A MOVE THAT WOULD INCREASE THE YIELD AS THE YEARS GO BY ACCORDING TO PEOPLE FAMILIAR WITH THE MEETING HOWEVER MR CLINTON TOLD HIS AIDES TO TRY TO REJIGGER THE HEALTHPLAN FINANCING SCHEME SO THAT AN ANNUAL INFLATION ADJUSTMENT WOULDN'T BE NEEDED CURRENTLY THE FEDERAL EXCISE TAX ON CIGARETTES IS 24 CENTS A PACK THE CLINTON PLAN ALSO WOULD INCREASE TAXES ON ALL OTHER TOBACCO PRODUCTS SUCH AS CIGARS AND CHEWING TOBACCO WHITE HOUSE OFFICIALS WARNED THAT THE DETAILS OF THE PROPOSED TAX INCREASE WON'T BE FINAL UNTIL THE HEALTHCARE PLAN IS DELIVERED TO CAPITOL HILL NEXT WEEK OFFICIALS SAID THE PLAN IS SET TO GO TO THE PRINTERS THIS WEEKEND MR CLINTON HAS BEEN UNDER INTENSE PRESSURE FROM CERTAIN LAWMAKERS TO HOLD DOWN THE TOBACCO TAX INCREASE WHEN THE PRESIDENT TRAVELED TO THE UNIVERSITY OF NORTH CAROLINA IN CHAPEL HILL LAST WEEK FOR A SPEECH MEMBERS OF THE STATE'S DELEGATION SUCH AS DEMOCRATIC REP STEPHEN NEAL MADE THEIR CASE AS THEY FLEW AS GUESTS ON AIR FORCE ONE TOBACCOSTATE LAWMAKERS WANTED MR CLINTON TO PROPOSE ONLY A 50CENT INCREASE IN ANY EVENT THEY HOPE TO WHITTLE IT DOWN AS THE LEGISLATION MOVES THROUGH CONGRESS SEPARATELY THE GENERAL ACCOUNTING OFFICE ISSUED A REPORT QUESTIONING HOW MUCH MONEY COULD BE SAVED THROUGH THE USE OF MANAGEDCARE HEALTH PLANS WHICH THE CLINTON PROPOSAL WOULD ENCOURAGE MANAGED CARE DESCRIBES NETWORKS OF DOCTORS AND HOSPITALS THAT PROVIDE PATIENTS WITH ALL LEVELS OF NECESSARY CARE FOR A FIXED MONTHLY OR ANNUAL FEE ALTHOUGH MANY EMPLOYERS BELIEVE THAT IN PRINCIPLE MANAGEDCARE PLANS SAVE MONEY LITTLE EMPIRICAL EVIDENCE EXISTS ON THE COST SAVINGS OF MANAGED CARE THE GAO CAUTIONED IN ITS REPORT WHICH WAS PREPARED AT THE BEHEST OF REP FORTNEY PETE STARK THE CALIFORNIA DEMOCRAT WHO IS CHAIRMAN OF THE HOUSE WAYS AND MEANS HEALTH SUBCOMMITTEE STILL THE ADMINISTRATION INSISTS THAT BY THE END OF THE DECADE IT CAN GENERATE 136 BILLION IN SAVINGS FROM THE HEALTH SYSTEM IN PART THROUGH THE HEIGHTENED USE OF MANAGED CARE IN AN APPEARANCE YESTERDAY BEFORE THE SENATE LABOR COMMITTEE LAURA TYSON THE CHAIRWOMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS CITED THE EXPERIENCE WITH HEALTHMAINTENANCE ORGANIZATIONS ESPECIALLY IN CALIFORNIA AS EVIDENCE THAT COSTS CAN BE DRIVEN DOWN IN THE HEALTHCARE SYSTEM WE CAN HAVE COSTS AS LOW AS 10TO20 PERCENT BELOW CURRENT LEVELS SHE ASSERTED THE REPUBLICAN NATIONAL COMMITTEE ALSO ENTERED THE ESCALATING HEALTHCARE DEBATE ANNOUNCING A NATIONAL TELEVISION ADVERTISING CAMPAIGN THAT PAINTS THE CLINTON PLAN AS A GOVERNMENTRUN SYSTEM CONTROLLED BY STATE BUREAUCRACIES WE HAD NOT INTENDED PAID ADVERTISING AT THIS POINT SAID HALEY BARBOUR RNC CHAIRMAN HOWEVER SOME IN THE MEDIA AND THE PUBLIC HAVE CONFUSED THE FACT THAT REPUBLICANS FAVOR HEALTHCARE REFORM WITH THE IDEA WE AGREE WITH THE CLINTONS' PLAN OR FIND IT ACCEPTABLE I WANT TO SET THE RECORD STRAIGHT MEANWHILE FAMILIES USA A CONSUMER ADVOCACY GROUP THAT SUPPORTS PRESIDENT CLINTON'S HEALTH PLAN DISTRIBUTED TO REPORTERS A BOOTLEG COPY OF THE INSURANCE INDUSTRY'S GRASSROOTS LOBBYING STRATEGY ACCORDING TO THE THICK BINDER OF DOCUMENTS THE INDUSTRY IS ORGANIZING SWAT TEAMS TO SHOW UP AT CONSTITUENT MEETINGS THAT CERTAIN MEMBERS OF CONGRESS HOLD IN THEIR DISTRICTS AND OPPOSE MAJOR PROVISIONS OF THE CLINTON HEALTH PLAN SUCH AS GOVERNMENT CONTROLS ON INSURANCE PREMIUMS THE STRATEGY IS TO BE CARRIED OUT BY A GROUP CALLED THE COALITION FOR HEALTH INSURANCE CHOICES WHICH DESCRIBES ITSELF IN ADVERTISEMENTS AS A BROADBASED COALITION OF TENS OF THOUSANDS OF INDIVIDUALS SMALL BUSINESSES MAJOR CORPORATIONS AND MANY OTHER ORGANIZATIONS THE HEALTH INSURANCE ASSOCIATION OF AMERICA AN INDUSTRY TRADE GROUP FUNDS THE COALITION A FACT ACKNOWLEDGED IN THE COALITION'S ADS WHICH READ MAJOR FUNDING BY THE HEALTH INSURANCE ASSOCIATION OF AMERICA YESTERDAY A TOP HIAA OFFICIAL SAID THE INSURANCE TRADE GROUP IS THE ONLY SOURCE OF FUNDING AT THE MOMENT BUT RANDOM CALLS TO SOME OF THE ORGANIZATIONS BUSINESSES AND INDIVIDUALS ON THE MEMBERSHIP LIST INCLUDED IN THE COALITION'S BINDER SUGGEST THAT MANY OF THEIR TIES TO THE ASSOCIATION ARE LOOSE AT BEST FOR EXAMPLE REYOLDO AMPON IS LISTED AS AN INDIVIDUAL MEMBER OF THE COALITION OH REALLY ASKS MR AMPON AN EMPLOYEE OF BENEFIT TRUST LIFE INSURANCE CO IN LAKE FOREST ILL WHEN TOLD OF THIS I DIDN'T EVEN KNOW IT MUST BE COMPANYSPONSORED DON PETERSON CHIEF EXECUTIVE OF BENEFIT TRUST AND A DIRECTOR OF THE HIAA SAYS THE COMPANY DID CIRCULATE MATERIAL ON THE COALITION TO ITS EMPLOYEES AND AGENTS AND ENCOURAGED THEM TO JOIN HILARY STOUT CONTRIBUTED TO THIS ARTICLE 9310200091 931020 WHAT'S NEWS BUSINESS AND FINANCE CLINTON DECIDED TO PROPOSE A CIGARETTE TAX INCREASE OF 75 CENTS A PACK TO HELP PAY FOR HIS HEALTHCARE PLAN THE DECISION REPRESENTS A RETREAT FROM THE 1APACK INCREASE THE WHITE HOUSE HAD ONCE CONTEMPLATED THE NEW FIGURE IS A BOW TO THE STRENGTH OF THE LOBBYISTS AND LAWMAKERS WHO REPRESENT TOBACCO INTERESTS PHILIP MORRIS'S PROFIT FELL 25 IN THE THIRD QUARTER REFLECTING THE FOOD AND TOBACCO COMPANY'S COSTLY DECISION TO CUT PRICES OF CIGARETTES IN THE US THE COMPANY ALSO PREDICTED EARNINGS IN THE FOURTH QUARTER WILL BE LOWER PFIZER UPJOHN AND AMERICAN CYANAMID SAID THEY PLAN TO ELIMINATE 7000 JOBS AND TAKE HUGE RESTRUCTURING CHARGES IN THE LATEST ROUND OF PHARMACEUTICAL INDUSTRY CUTBACKS PFIZER TOOK A 750 MILLION CHARGE WHICH LED TO A THIRDQUARTER LOSS AND PLANS TO CUT ITS WORK FORCE BY ABOUT 3000 WARNERLAMBERT REPORTED A 52 DROP IN THIRDQUARTER EARNINGS WHILE CR BARD POSTED A LOSS AND SMITHKLINE BEECHAM'S PROFIT ROSE 13 ELI LILLY REPORTED A PROFIT FOR THE PERIOD COMPARED WITH A YEAREARLIER LOSS CHEMICAL BANKING NAMED WALTER SHIPLEY CHAIRMAN AND CEO SUCCEEDING JOHN MCGILLICUDDY THE BANK NAMED EDWARD MILLER FROM MANUFACTURERS HANOVER PRESIDENT CHEMICAL ALSO REPORTED THIRDQUARTER PROFIT THAT WAS ABOVE ANALYSTS' ESTIMATES HOUSING STARTS GAINED IN SEPTEMBER INCREASING 28 TO THE HIGHEST LEVEL IN MORE THAN THREE YEARS CITICORP BANC ONE AND WELLS FARGO POSTED STRONG THIRDQUARTER NET BOOSTED BY FEWER PROBLEM DEBTS WEAK LOAN DEMAND AT BANKS WILL CONTINUE EVEN IF THE ECONOMY PICKS UP MAINLY DUE TO CHANGES IN CORPORATE FINANCING POLICIES SURVEYS SUGGEST LLOYD'S OF LONDON WILL VOTE TODAY ON WHETHER TO PERMIT CORPORATE CAPITAL IN THE INSURANCE MARKET WHICH IS RESTRICTED TO INDIVIDUAL INVESTORS THE WHITE HOUSE LAID OUT ITS PLAN TO RAISE ABOUT 25 BILLION IN TAXES AND CUSTOMS FEES AS PART OF NAFTA EVEN AS PRESIDENT CLINTON AND OTHERS SIGNALED THAT THE PROPOSAL COULD STILL CHANGE U S WEST IS HOLDING DISCUSSIONS ABOUT ACQUIRING ALL OR PART OF CABLEVISION SYSTEMS A CABLETV COMPANY WMX TECHNOLOGIES IS TAKING STEPS THAT SIGNAL A BROAD SCALING BACK OF ITS AMBITIOUS GROWTH PLANS AMID DETERIORATING CONDITIONS IN THE WASTE BUSINESS THE MOVES INCLUDE FOCUSING ON MANAGING CAPITAL TO GENERATE CASH CONGRESS IS CONSIDERING TIGHTENING REGULATIONS GOVERNING SALES AND MARKETING PRACTICES OF MUTUAL FUNDS DIGITAL EQUIPMENT WAS CHOSEN BY U S WEST TO WORK WITH 3DO ON COMPUTER SYSTEMS TO PROVIDE VIDEO TO THOUSANDS OF HOMES IN AN INTERACTIVETV TRIAL PROPOSED BY THE BABY BELL GOLDMAN SACHS HIRED E GERALD CORRIGAN FORMER PRESIDENT OF THE NEW YORK FED AS CHAIRMAN OF ITS INTERNATIONAL ADVISORY COMMITTEE SPRINT'S THIRDQUARTER NET WAS ESSENTIALLY FLAT AMID SLUGGISH GROWTH IN ITS LONGDISTANCE PHONE BUSINESS BONDS LEHMAN BROTHERS TREASURY INDEX 573114 UNCHANGED COMMODITIES OIL 1806 A BARREL OFF SEVEN CENTS DOW JONES FUTURES INDEX 12791 OFF 067 SPOT INDEX 11854 UP 018 9310200090 931020 BUSINESS BRIEF BELL ATLANTIC 3RDPERIOD NET FELL 21 U S WEST REPORTS LOSS OF 355 BILLION TWO LARGE REGIONAL PHONE COMPANIES REPORTED WEAK RESULTS BUT ANALYSTS SAID INVESTORS PROBABLY AREN'T AS INTERESTED IN THE CURRENT ROUND OF EARNINGS REPORTS AS THEY DIGEST RECENTLY ANNOUNCED TELECOMMUNICATIONS COMBINATIONS BELL ATLANTIC CORP IN THE MIDST OF ITS BID TO ACQUIRE CABLE GIANT TELECOMMUNICATIONS INC REPORTED A 21 DROP IN NET INCOME TO 3785 MILLION OR 87 CENTS A SHARE FROM 3866 MILLION OR 90 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 32 TO 329 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BELL ATLANTIC SHARES FELL 385 CENTS TO 64625 BELL ATLANTIC STOCK SIMPLY ISN'T GOING TO TRADE AS A FUNCTION OF NEARTERM EARNINGS SAID JACK GRUBMAN AN ANALYST WITH PAINEWEBBER INC RIGHT NOW TOO MANY OTHER THINGS ARE HAPPENING EXCLUDING ONETIME ITEMS THE PHILADELPHIABASED REGIONAL BELL POSTED A 10 INCREASE IN OPERATING EARNINGS LARGELY ON THE STRENGTH OF ITS CELLULARPHONE BUSINESS CUSTOMERS AT ITS WIRELESS BUSINESS ROSE TO 893000 IN THE QUARTER A GAIN OF 276000 FROM A YEAR EARLIER BELL ATLANTIC ALSO REPORTED A 24 GAIN IN ACCESS LINES FOR THE QUARTER TO 185 MILLION BUSINESS ACCESS LINES INCREASED 38 DURING THE QUARTER TOTAL MINUTES OF USE GAINED 76 AND MESSAGETOLLSERVICE VOLUME ROSE 33 REFLECTING EFFORTS TO CUT COSTS BELL ATLANTIC SAID OPERATING EXPENSES EXCLUDING AN INCREASE OF 44 MILLION FOR DEPRECIATION WERE ESSENTIALLY FLAT COMPARED WITH THE YEAREARLIER QUARTER U S WEST INC ENGLEWOOD COLO RECORDING SUBSTANTIAL CHARGES REPORTED A LOSS OF 355 BILLION OR 850 A SHARE COMPARED WITH NET INCOME OF 2662 MILLION OR 65 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 52 TO 258 BILLION THE COMPANY RECORDED A CHARGE OF 312 BILLION OR 749 A SHARE FOR ADJUSTING ITS ACCOUNTING PRINCIPLES FROM THOSE USED BY REGULATED UTILITIES TO THOSE USED BY COMPETITIVE COMPANIES EXCLUDING ONETIME ITEMS U S WEST RESULTS GENERALLY FELL WITHIN EXPECTATIONS ANALYSTS SAID IT HAD OPERATING PROFIT FROM CONTINUING OPERATIONS OF 2939 MILLION THE REGIONAL BELL CONTINUED TO BENEFIT FROM STRONG GROWTH AT ITS CELLULAR UNIT WHERE CUSTOMERS INCREASED 36 TO 517000 THE COMPANY'S RATE OF ACCESSLINE GROWTH ALSO CONTINUED TO EXCEED MUCH OF THE INDUSTRY INCREASING 35 OR 469000 LINES TO 137 MILLION ANALYSTS SAID U S WEST'S LARGE GEOGRAPHICAL SERVICE AREA HAS HELPED DRIVE ITS STRONGER GROWTH IN ACCESS LINES THE COMPANY ALSO SAID ACCESS LINES AT ITS BRITISH JOINT VENTURE WITH TELECOMMUNICATIONS TELEWEST INCREASED TO 119000 FROM 52000 CABLE CUSTOMERS AT THE VENTURE INCREASED TO 190000 FROM 115000 IN PART AS A RESULT OF AN ACQUISITION U S WEST SHARES FELL 125 CENTS TO 4875 IN BIG BOARD TRADING YESTERDAY 9310200089 931020 MUTUAL FUNDS MUTUAL FUND RULES MULLED BY CONGRESS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONGRESS WORRIED THAT BOOMING MUTUALFUND PURCHASES MAY SPAWN OPPORTUNITIES FOR CONFUSION AND ABUSE IS BEGINNING TO CONSIDER LEGISLATION TO TIGHTEN REGULATION OF SALES AND MARKETING PRACTICES HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS AND REP CHARLES SCHUMER D NY A MEMBER OF THE PANEL YESTERDAY ANNOUNCED A BILL TO REGULATE SUCH SALES BY BANKS AND REP EDWARD MARKEY D MASS CHAIRMAN OF THE FINANCE PANEL OF THE HOUSE ENERGY AND COMMERCE COMMITTEE IS PREPARING LEGISLATION THAT WOULD IMPOSE TIGHTER STANDARDS ON MUTUALFUND ADVERTISING AND MANAGEMENT AS INTEREST RATES HAVE FALLEN MANY INVESTORS HAVE MOVED FUNDS FROM BANK ACCOUNTS WHICH ARE COVERED BY FEDERAL DEPOSIT INSURANCE INTO MUTUAL FUNDS WHICH AREN'T INSURED AND THOUSANDS OF BANKS HAVE STARTED SELLING MUTUAL FUNDS REPS GONZALEZ AND SCHUMER ARE CONCERNED THAT SOME CUSTOMERS AREN'T AWARE THAT MUTUALFUND SHARES ANNUNITIES AND OTHER SECURITIES PURCHASED FROM BANKS ARE INVESTMENTS THAT CAN RISE AND FALL IN VALUE NOT INSURED SAVINGS WITH STABLE VALUE THEIR LEGISLATION WOULD FORCE BANKS TO TAKE STEPS TO ENSURE CUSTOMERS UNDERSTAND SECURITIES PRODUCTS AREN'T INSURED SEPARATELY A SENATE BANKING COMMITTEE PANEL PLANS TO HOLD HEARINGS IN NOVEMBER ON REGULATION OF THE MUTUALFUND INDUSTRY BUT THE LATE START BY THE SENATE MAKES IT UNLIKELY SUCH LEGISLATION WOULD BE COMPLETED THIS YEAR THE BANKING INDUSTRY IS SURE TO FIGHT MUTUALFUND LEGISLATION STILL IT'S CLEAR THE LAWMAKERS ARE STARTING TO TURN THEIR ATTENTION TO THE 19 TRILLION INDUSTRY YOU JUST DON'T GO TO A BANK THESE DAYS TO DEPOSIT MONEY IN AN INSURED CHECKING OR SAVINGS ACCOUNT MR SCHUMER SAID IN THE BRAVE NEW WORLD OF BANKING YOU NOW WALK INTO A BANK TO INVEST YOUR MONEY WALL STREET NOW RUNS RIGHT THROUGH THE LOBBIES OF MANY OF OUR BANKS THE GONZALEZSCHUMER BILL WOULD MAKE LAW THE GUIDELINES THAT FEDERAL REGULATORS GIVE BANKS ON THE SALE OF MUTUAL FUNDS AND ANNUITIES CUSTOMERS WOULD BE REQUIRED TO SIGN STATEMENTS ACKNOWLEDGING THAT THEY HAVE BEEN TOLD THE INVESTMENT PRODUCTS AREN'T FEDERALLY INSURED AREN'T OBLIGATIONS OF THE BANK AND INVOLVE MARKET RISKS INCLUDING POSSIBLE LOSS OF PRINCIPAL BUT PARTS OF THE BILL ARE MORE RIGID THAN EITHER THE GUIDELINES OR A DEVELOPING PLAN BY THE BANKING INDUSTRY TO POLICE ITS SALES OF MUTUAL FUNDS FOR INSTANCE UNINSURED INVESTMENT PRODUCTS WOULD HAVE TO BE SOLD IN AN AREA SEPARATE FROM TELLER WINDOWS WHERE CUSTOMERS DEAL IN INSURED DEPOSITS A REQUIREMENT LIKELY TO BURDEN SMALL BANKS WITH SMALL STAFFS SUCH A BILL IF ENACTED COULD LEAD TO HUNDREDS OF PAGES OF REGULATION AND MILLIONS OF DOLLARS IN ADDITIONAL COSTS COMPLAINED DONALD OGILVIE EXECUTIVE VICE PRESIDENT OF THE AMERICAN BANKERS ASSOCIATION ALL THIS WOULD BE UNNECESSARY SINCE THERE IS NO EVIDENCE OF ABUSES AND SINCE THE REGULATORS AND THE INDUSTRY ARE WORKING TOGETHER AGGRESSIVELY TO ACHIEVE THE SAME GOALS MATTHEW FINK PRESIDENT OF THE INVESTMENT COMPANY INSTITUTE THE MUTUALFUND TRADE ASSOCIATION SAID IT'S THE JOB OF THE SECURITIES AND EXCHANGE COMMISSION NOT BANK REGULATORS TO SUPERVISE MUTUALFUND SALES FOR THIS REASON THE GONZALEZSCHUMER BILL MAY SPUR A TURF BATTLE BETWEEN THE BANKING COMMITTEE AND THE ENERGY AND COMMERCE PANEL WHICH OVERSEES THE SEC REP MARKEY'S LEGISLATION AIMS TO IMPOSE MORE UNIFORM AND INFORMATIVE ADVERTISING STANDARDS ON MUTUAL FUNDS IT WOULD SPECIFY HOW FUNDS MUST CALCULATE THEIR PERFORMANCE RATINGS SO THAT ALL FUNDS ARE MEASURED BY THE SAME STANDARDS IT ALSO WOULD SUPERSEDE REGULATIONS THAT THE SEC IS DRAFTING TO ALLOW PEOPLE TO BUY FUNDS BY MAILING FORMS IN NEWSPAPER AND MAGAZINE ADVERTISEMENTS RATHER THAN WAITING FOR A PROSPECTUS FOR INSTANCE THE MARKEY BILL MAY LIMIT THESE SOCALLED OFFTHEPAGE SALES TO FUNDS THAT HAVE BEEN IN BUSINESS FOR THREE YEARS OR MORE THE SEC HAS PROPOSED A TWOYEAR PERFORMANCE RECORD AS THE BASIS FOR SUCH SALES REP MARKEY'S STAFF ALSO IS TRYING TO DEVELOP A METHOD TO RATE A FUND'S RISK ON A SCALE OF ONE TO 10 SO POTENTIAL INVESTORS CAN EVALUATE THE RISK AND THE PERFORMANCE RECORDS OF FUNDS BEFORE BUYING SHARES RISK RATINGS ALSO COULD BE REQUIRED IN ADVERTISING 9310200088 931020 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 13/16 LOW 2 7/8 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 89 DAYS 318 90 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 253 ONE MONTH 258 TWO MONTHS 263 THREE MONTHS 273 SIX MONTHS 287 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 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 658 60 DAYS 668 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 658 60 DAYS 668 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 9310200087 931020 TECHNOLOGY DRUG FIRMS POST MIXED 3RDPERIOD RESULTS BY ELYSE TANOUYE AND CARLEE R SCOTT STAFF REPORTERS OF THE WALL STREET JOURNAL THREE DRUG COMPANIES AND A MEDICAL DEVICE MAKER REPORTED MIXED THIRDQUARTER RESULTS GENERALLY REFLECTING CONTINUED PRICING PRESSURES ADVERSE FOREIGN CURRENCY RATES AND IN TWO CASES REGULATORY PROBLEMS THE PHARMACEUTICAL COMPANIES SMITHKLINE BEECHAM PLC WARNERLAMBERT CO AND ELI LILLY & CO REPORTED THIRDQUARTER EARNINGS WITHIN WALL STREET'S EXPECTATIONS MEDICAL DEVICE MAKER CR BARD REPORTED A LOSS BECAUSE OF A PROVISION FOR A PROPOSED 61 MILLION SETTLEMENT WITH THE US JUSTICE DEPARTMENT AS PART OF A PLEA AGREEMENT OVER A SCANDAL INVOLVING HEART CATHETERS MARIOLA HAGGAR AN ANALYST AT SALOMON BROTHERS SAID THE US PHARMACEUTICAL COMPANIES WERE HURT BY FOREIGN CURRENCY TRANSLATION MOREOVER MEDICAL DEVICE SALES HAVE BEEN WEAK BECAUSE HOSPITALS HAVEN'T BEEN BUYING THEY'RE UNCERTAIN ABOUT THEIR FUTURE UNDER THE CLINTON ADMINISTRATION'S HEALTHCARE REFORM AND ARE CONSERVING CASH SHE SAID WARNERLAMBERT REPORTED A 52 DECREASE IN THIRDQUARTER EARNINGS TO 1559 MILLION OR 116 A SHARE THE MORRIS PLAINS NJ COMPANY BLAMED REGULATORY PROBLEMS INVOLVING ITS MANUFACTURING FACILITIES CHIEFLY IN PUERTO RICO FOR ITS EARNINGS DECLINE IT HAS SAID IN THE PAST THAT IT EXPECTS THE PROBLEMS WILL RESULT IN ABOUT 150 MILLION IN LOST SALES THIS YEAR SALES INCREASED 28 TO 148 BILLION IN THE QUARTER REDUCED BY THREE PERCENTAGE POINTS BECAUSE OF ADVERSE FOREIGN CURRENCY RATES THE COMPANY'S CONSUMER PRODUCTS SECTOR POSTED A 9 INCREASE IN THE QUARTER LED BY SALES GAINS OF TRIDENT GUM AND SCHICK AND WILKINSON SHAVING PRODUCTS ALL OF THE GAINS CAME FROM ABROAD UP 19 COMPARED WITH FLAT SALES IN THE US WARNERLAMBERT'S PHARMACEUTICAL SALES FELL 7 CHIEFLY BECAUSE SALES OF HEART DRUG LOPID DECLINED IN COMPOSITE BIG BOARD TRADING YESTERDAY WARNERLAMBERT SHARES FELL 1375 TO 69875 SMITHKLINE BEECHAM REPORTED A 13 JUMP IN PROFIT TO 201 MILLION 2989 MILLION ONE OF THE FEW MAJOR DRUG COMPANIES THAT WAS HELPED BY CURRENCY TRANSLATIONS BECAUSE IT IS BASED IN LONDON SALES ROSE 20 TO 146 BILLION CONSIDERING PUNISHING EFFECTS OF HEALTHCARE COST CONTAINMENT SPREADING RAPIDLY AMONG GOVERNMENTS AROUND THE WORLD ANALYSTS SAID SMITHKLINE'S SALES AND PROFIT GROWTH HELD UP WELL AND WERE BROADLY IN LINE WITH PROJECTIONS THE COMPANY'S BENCHMARK CLASS A SHARES BUCKED A WEAK LONDON STOCK MARKET TO RISE 85 PENCE TO 414 PENCE YESTERDAY SMITHKLINE'S HEPATITIS B VACCINE ENGERIX B SALES MEASURED IN CONSTANT EXCHANGE RATES TUMBLED 15 DURING THE LATEST QUARTER REFLECTING SHARPLY LOWER VACCINE DEMAND IN THE US AND ITALY STRONG SALES IN EUROPE OF SMITHKLINE'S NUMBERONE DRUG THE ANTIBIOTIC AUGMENTIN WERE OFFSET BY A 5 DECLINE IN US SALES HOLDING OVERALL THIRDQUARTER GROWTH TO 4 SALES OF TAGAMET THE ULCER DRUG WHICH FACES PATENT EXPIRATION IN THE US NEXT YEAR ROSE 2 DURING THE THIRD QUARTER BUT WERE DOWN 7 FOR THE NINE MONTHS A KEY FACTOR UNDERLYING THIS YEAR'S SALES DECLINE IS HEFTY DISCOUNTS OFFERED BY SMITHKLINE TO BIG US MANAGEDCARE PROVIDERS IN EXCHANGE FOR LONGTERM CONTRACTS TO SUPPLY TAGAMET ELI LILLY WHICH RECENTLY ANNOUNCED PLANS TO CUT 4000 JOBS REPORTED THIRDQUARTER SALES ROSE 4 TO 153 BILLION EARNINGS FOR THE PERIOD OF 2944 MILLION OR 1 A SHARE CAME WITHIN THE RANGE OF ANALYSTS ESTIMATES WHILE THE LOSS IN THE YEAREARLIER QUARTER WAS DUE TO PRETAX CHARGES TOTALING 5196 MILLION FOR RESTRUCTURING AND OTHER ACTIONS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING LILLY SHARES FELL 150 TO 53375 THE INDIANAPOLIS COMPANY SAID ITS WORLDWIDE PHARMACEUTICAL SALES ROSE 3 LED BY SUCH PRODUCTS AS AXI AN ULCER DRUG HUMULIN A HUMAN GROWTH HORMONE AND PROZAC AN ANTIDEPRESSANT PHARMACEUTICAL SALES IN THE US ROSE 4 LILLY SAID DESPITE DOWNWARD PRESSURES ON PRICES RESULTING FROM GREATER PARTICIPATION IN MANAGEDCARE PROGRAMS AND INCREASED MEDICAID REBATES SALES AT LILLY'S MEDICAL DEVICES AND DIAGNOSTICS DIVISION ROSE 11 AIDED BY ITS PHYSIOCONTROL UNIT'S RESUMPTION OF ITS LIFEPAK 10 DEFIBRILLATOR SHIPMENTS MEDICALDEVICE MAKER CR BARD REPORTED A THIRDQUARTER LOSS OF 252 MILLION OR 48 CENTS A SHARE REFLECTING THE JUSTICE DEPARTMENT PLEA AGREEMENT SETTLEMENT WITHOUT THE PROVISION THE COMPANY WOULD HAVE REPORTED A 58 RISE IN NET INCOME SALES FELL 34 TO 2435 MILLION 9310200086 931020 GTE'S PROFIT ROSE 06 IN 3RD PERIOD REVENUE FELL 04 STAMFORD CONN GTE CORP REPORTED A SLIGHT GAIN IN NET INCOME FOR THE THIRD QUARTER DESPITE A SMALL DROP IN REVENUE AS IT CONTINUED TO WRING SAVINGS OUT OF ITS LOCAL TELEPHONE OPERATIONS FOR THE QUARTER THE TELECOMMUNICATIONS CONCERN'S PROFIT ROSE 06 TO 468 MILLION OR 49 CENTS A SHARE FROM 465 MILLION OR 52 CENTS A SHARE IN THE YEAREARLIER PERIOD WHEN IT HAD FEWER SHARES OUTSTANDING REVENUE DECLINED 04 TO 494 BILLION FROM 497 BILLION THE QUARTER INCLUDED A CHARGE OF 90 MILLION OR 10 CENTS A SHARE RELATED TO THE EARLY RETIREMENT OF DEBT EXCLUDING ONETIME ITEMS THE COMPANY SAID PROFIT INCREASED 13 ANALYSTS SAID GTE CONTINUED TO BENEFIT FROM A COSTCUTTING PLAN AT ITS LOCAL PHONE OPERATIONS IN THE PAST YEAR GTE HAS TRIMMED ITS DOMESTIC WORK FORCE ABOUT 75 TO 98000 EMPLOYEES GTE CONTINUES TO BE ONE OF THE MOST AGGRESSIVE TELEPHONE COMPANIES IN TERMS OF MOVING TO PREPARE FOR COMPETITION SAID JACK GRUBMAN AN ANALYST WITH PAINEWEBBER INC THEY MOVE ON CUTTING COSTS BETTER THAN ANYONE ELSE MINUTES OF USE AMONG ITS PHONE OPERATIONS ROSE 77 FROM A YEAR EARLIER AND ACCESS LINES INCREASED 39 THE COMPANY CONTINUED TO BENEFIT FROM GROWTH AT ITS CELLULAR OPERATIONS REPORTING A 40 GAIN IN CUSTOMERS OVER THE YEAREARLIER QUARTER CELLULAR OPERATIONS ADDED 111000 CUSTOMERS DURING THE QUARTER TO GIVE GTE 14 MILLION OVERALL GTE SHARES ROSE 1125 TO 39875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9310200085 931020 WMX MOVES TO SCALE BACK GROWTH PLANS TRASH FIRM BOWS TO PRESSURES IN THE INDUSTRY RATINGS DROP 3RDPERIOD LOSS BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL WMX TECHNOLOGIES INC IS TAKING STEPS THAT SIGNAL A BROAD SCALING BACK OF ITS AMBITIOUS GROWTH PLANS IN THE FACE OF DETERIORATING CONDITIONS IN THE WASTE BUSINESS A THIRDQUARTER LOSS AND A DOWNGRADE OF ITS DEBT RATINGS THE WORLD'S LARGEST TRASH AND HAZARDOUS WASTE HANDLER WHICH HAS SPENT HEAVILY IN RECENT YEARS TO BUILD DUMPS INCINERATORS AND OTHER ENVIRONMENTAL FACILITIES APPEARS FINALLY TO BE BOWING TO THE PRESSURES OF LOWERTHANEXPECTED WASTE VOLUMES AND DECLINING DISPOSAL PRICES WMX TECHNOLOGIES ALSO SAID THAT IT STOPPED BUYING BACK ITS STOCK SOMETIME BEFORE JUNE 30 HAVING SPENT MORE THAN 300 MILLION DURING THE FIRST TWO QUARTERS THE BUYBACKS HELPED PROP UP ITS SHARE PRICE BUT ADDED TO ITS DEBT BURDEN IT APPEARS TO US THE CHOICE HAS BEEN MADE DOUGLAS AUGENTHALER A WASTE INDUSTRY ANALYST AT OPPENHEIMER & CO IN NEW YORK SAID AFTER LISTENING TO WMX TECHNOLOGIES MANAGEMENT SPEAK ON CONFERENCE CALLS WMX WILL SAVE THE BALANCE SHEET AND SCALE BACK SPENDING THE SHIFT WILL MEAN LOWER SPENDING ON ACQUISITIONS IN SOME AREAS PARTICULARLY FOREIGN OPERATIONS AND POSSIBLY THE ENGINEERING AND CONSTRUCTION BUSINESS THAT INVESTORS HAVE LOOKED TO FOR RAPID GROWTH AT THE COMPANY FORMERLY KNOWN AS WASTE MANAGEMENT INC LATE YESTERDAY A SPOKESMAN CONFIRMED A SHIFT IN MANAGEMENT THINKING AT THE OAK BROOK ILLBASED WASTE COMPANY WE'RE GOING TO PUT ADDITIONAL FOCUS ON MANAGING OUR CAPITAL TO GENERATE CASH FLOWS WE WANT TO INCREASE THE RETURN ON INVESTED CAPITAL SPECIALLY THE SPOKESMAN CONFIRMED CAPITAL AND ACQUISITION SPENDING AT THE COMPANY'S WASTE MANAGEMENT INTERNATIONAL PLC UNIT WON'T MEET EARLIER ESTIMATES FOR 1993 OF 530 MILLION 788 MILLION AND 1994 SPENDING IS EXPECTED TO FALL ABOUT 65 MILLION BELOW THIS YEAR'S ACTUAL LEVEL THROUGH SEPTEMBER 30 THE UNIT HAD SPENT ABOUT 330 MILLION ACQUISITION SPENDING AT THE COMPANY'S RUST INTERNATIONAL INC UNIT AN ENGINEERING AND CONSTRUCTION FIRM THAT PERFORMS GOVERNMENT CLEANUP WORK COULD ALSO DECLINE THEY HAVE WHAT THEY NEED THEY'RE FOCUSING ON INTEGRATING ACQUISITIONS THE SPOKESMAN SAID THOSE TWO UNITS THE MOST RECENT TO BE TAKEN PARTIALLY PUBLIC BY WMX TECHNOLOGIES HAVE BEEN MAJOR GROWTH VEHICLES THAT HELPED MAKE UP FOR A BIG DECLINE IN THE US HAZARDOUSWASTE BUSINESS AND DIFFICULT COMPETITION IN THE US TRASH BUSINESS WHERE A GLUT OF DUMPS AND INCINERATORS HAS LED TO CUTTHROAT PRICING THE COMPANY ALREADY SAID LAST MONTH THAT CAPITAL SPENDING IN THE HAZARDOUS WASTE UNIT CHEMICAL WASTE MANAGEMENT INC WOULD BE SLASHED TO 50 MILLION NEXT YEAR FROM MORE THAN 200 MILLION IN 1992 THE SPOKESMAN WOULDN'T COMMENT ON OVERALL INVESTMENT PLANS TO REIGNITE GROWTH FROM ITS EXISTING OPERATIONS MR AUGENTHALER SAID WMX TECHNOLOGIES WOULD NEED PRICE INCREASES IN THE US GARBAGE DISPOSAL BUSINESS TO WIN SOME BIG FEDERAL HAZARDOUSWASTE CLEANUP CONTRACTS THAT HAVE MOSTLY ELUDED RUST INTERNATIONAL AND AN IMPROVED EUROPEAN ECONOMY THAT WOULD ALLOW WASTE MANAGEMENT INTERNATIONAL TO GROW RAPIDLY DESPITE A SLOWED ACQUISITION PROGRAM A 363 MILLION CHARGE AT CHEMICAL WASTE TO WRITE DOWN THE VALUE OF INCINERATORS AND OTHER ASSETS RESULTED IN A THIRDQUARTER LOSS FOR WMX TECHNOLOGIES LAST NIGHT THE COMPANY REPORTED A 1272 MILLION LOSS FOR THE QUARTER EQUAL TO 26 CENTS A SHARE COMPARED WITH A YEAREARLIER PROFIT OF 2167 MILLION OR 44 CENTS A SHARE EXCLUDING THE CHEMICAL WASTE CHARGE AND 24 MILLION OF RETROACTIVE TAXES UNDER THE CLINTON ADMINISTRATION BUDGET NET INCOME STILL WOULD HAVE FALLEN TO 1862 MILLION OR 39 CENTS A SHARE WMX TECHNOLOGIES STOCK CLOSED AT 28875 A SHARE UP 25 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING STANDARD & POOR'S CORP MEANWHILE DOWNGRADED 5 BILLION OF WMX TECHNOLOGIES DEBT AS LARGELY EXPECTED BUT ALSO WARNED THAT THE RATINGS WILL BE TAKEN DOWN ANOTHER NOTCH UNLESS THE COMPANY MOVES TO BOLSTER ITS BALANCE SHEET THE OUTLOOK IS NEGATIVE S&P SAID FAILURE TO MATERIALLY STRENGTHEN THE FINANCIAL PROFILE WOULD RESULT IN ANOTHER DOWNGRADE S&P ANALYST ROMAN SZUPER SAID THE DEBT LEVERAGE HAS BEEN HIGH FOR SOME TIME AT WMX TECHNOLOGIES BUT INDUSTRY FUNDAMENTALS WERE MORE FAVORABLE A WMX TECHNOLOGIES SPOKESMAN WOULDN'T COMMENT ON THE S&P MOVE BUT NOTED THAT AT DOUBLEAMINUS AND SINGLEAPLUS ITS SENIOR AND SUBORDINATED DEBT RESPECTIVELY REMAIN HIGHLY RATED S&P ALSO PLACED 12 BILLION OF DEBT OF BROWNINGFERRIS INDUSTRIES INC UNDER REVIEW FOR POSSIBLE DOWNGRADE BROWNINGFERRIS THE NO 2 WASTE CONCERN ALSO FACES DEMANDS FOR CAPITAL SPENDING TO MAINTAIN ITS COMPETITIVE POSITION 9310200084 931020 FOREIGN EXCHANGE NEW DOLLAR GAINS AGAINST MARK SEEN THIS WEEK FOLLOWING RECENT SHARP RISE BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR GAINED SLIGHTLY AGAINST THE MARK TUESDAY AS PLAYERS TOOK A BREATHER FOLLOWING MONDAY'S SHARP RISE AND PREPARED FOR ANOTHER PUSH HIGHER DURING THE NEXT FEW DAYS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16409 MARKS UP FROM 16390 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10720 YEN DOWN FROM 10740 YEN STERLING WAS TRADING AT 14897 UP FROM 14860 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10698 YEN AND AT 16400 MARKS TRADERS SAID THAT FOLLOWING THE DOLLAR'S SHARP RISE MONDAY AGAINST THE MARK WHICH WAS SPARKED BY STOPLOSS BUYING AFTER THE DOLLAR BROKE THROUGH A TECHNICAL LEVEL AGAINST THE GERMAN UNIT MOST PLAYERS WERE CONTENT TO LET THE DOLLAR DRIFT NARROWLY IN TRADING RANGES TUESDAY TO TEST BUYING INTEREST FOR THE US CURRENCY AT THE HIGHER LEVELS AND WHEN DOLLAR BUYING REMAINED BRISK THROUGHOUT TUESDAY'S ACTIVITY HELPING THE DOLLAR TO VAULT OVER THE 16400MARKS LEVEL IN LATE NEW YORK TRADING PLAYERS PREPARED FOR A NEW ADVANCE BY THE US CURRENCY I THINK IT'S CLEARLY BUILDING A BASE BEFORE ANOTHER RUN HIGHER SAID VICTOR POLCE A VICE PRESIDENT AND FOREIGNEXCHANGE MANAGER AT COMMERZBANK IN NEW YORK THE UPSIDE IS CLEARLY THE PREFERRED SIDE AT THE MOMENT HE ADDED DEALERS AGREED THAT THE DOLLARBUYING INTEREST SPRANG FROM A VARIETY OF FACTORS INCLUDING RENEWED EXPECTATIONS OF AN EASING OF GERMAN INTEREST RATES LATER THIS WEEK AND MORE CONFIDENCE IN THE STRENGTH OF THE US ECONOMY TRADERS NOTED THAT THE MARKET WIDELY EXPECTS GERMANY'S CENTRAL BANK TO LOWER ITS KEY REPO RATE A FEW BASIS POINTS OR HUNDREDTHS OF A PERCENTAGE POINT FROM THE CURRENT 670 WHEN IT CONDUCTS ITS SECURITIESREPURCHASE OPERATION ON WEDNESDAY THE REPO RATE IS THE BUNDESBANK'S PREFERRED TOOL FOR FINETUNING INTEREST RATES FOR THE DOMESTIC MONEY MARKET SUCH A MOVE TRADERS REASON WOULD SAP SOME OF THE MARK'S STRENGTH BY REDUCING THE YIELD OFFERED BY MARKDENOMINATED DEPOSITS ALSO THEY NOTED A CUT TO THE REPO RATE WOULD SIGNAL THAT CUTS TO THE CENTRAL BANK'S CRUCIAL 625 DISCOUNT AND 725 LOMBARD RATES COULD BE ON THE WAY PERHAPS AS SOON AS THE BUNDESBANK'S POLICYMAKING COUNCIL MEETS THURSDAY BUT THE DOLLAR IS ALSO BEING HELPED BY NEW OPTIMISM ABOUT THE STRENGTH OF THE US ECONOMY PARTICULARLY IN COMPARISON WITH THE SLUGGISH GROWTH SEEN IN EUROPE FURTHER EVIDENCE OF THAT STRENGTH APPEARED TUESDAY WITH THE RELEASE OF A STRONG REPORT ON US HOUSING STARTS US HOUSING STARTS ROSE 28 IN SEPTEMBER TO A SEASONALLY ADJUSTED ANNUAL RATE OF 1351000 THE HIGHEST LEVEL IN 3 1/2 YEARS THE COMMERCE DEPARTMENT SAID THE STRONG REPORT CONFOUNDED MARKET EXPECTATIONS FOR A DECLINE OF ABOUT 1 AND TOUCHED OFF A ROUND OF DOLLAR BUYING EARLY IN THE NEW YORK DAY EVERYBODY AND HIS BROTHER WAS EXPECTING A WEAK NUMBER COMMERZBANK'S MR POLCE SAID MEANWHILE THE DOLLAR MOVED NARROWLY LOWER AGAINST THE YEN IN RELATIVELY QUIET TRADING DEALERS NOTED THAT THE MAJOR ACTIVITY IN THE YEN TUESDAY WAS TO BE FOUND ON THE MARKYEN CROSS TRADE IN WHICH THE JAPANESE CURRENCY ALSO GAINED ON EXPECTATIONS OF LOWER GERMAN INTEREST RATES 9310200083 931020 BUSINESS BRIEF LOUISIANAPACIFIC CORP CONCERN'S THIRDQUARTER NET DROPS 25 FOLLOWING CHARGE STUNG BY A FALL IN LUMBER AND BUILDINGPRODUCT PRICES AS WELL AS A TAXADJUSTMENT CHARGE LOUISIANAPACIFIC CORP SAID THIRDQUARTER NET INCOME SLID ABOUT 25 TO 415 MILLION OR 38 CENTS A SHARE THAT COMPARES WITH NET INCOME OF 557 MILLION OR 52 CENTS A SHARE A YE EARLIER BEFORE THE 11 MILLION CHARGE EARNINGS HAD DROPPED 6 TO 525 MILLION THE PORTLAND ORE BUILDING PRODUCTS COMPANY REPORTED REVENUE OF 6294 MILLION DOWN 2 FROM 6414 MILLION LARGELY BECAUSE OF WEAK PRICES IN LUMBER AND STRUCTURAL PANELS BUT THE COMPANY SAID PRICES ARE REBOUNDING AND HOUSING STARTS ARE ENCOURAGING 9310200082 931020 CORRECTIONS & AMPLIFICATIONS LTV CORP HAS HEADQUARTERS IN CLEVELAND AN ARTICLE YESTERDAY INCORRECTLY SAID THAT THE STEEL AND ENERGY COMPANY IS BASED IN DALLAS 9310200081 931020 WHO'S NEWS GENCORP INC NAMES WESTINGHOUSE OFFICER YASINSKY AS PRESIDENT FAIRLAWN OHIO JOHN B YASINSKY A TOP WESTINGHOUSE ELECTRIC CORP EXECUTIVE WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF GENCORP INC AN AEROSPACE AUTOMOTIVE AND POLYMERPRODUCTS COMPANY EFFECTIVE NOV 1 MR YASINSKY 54 YEARS OLD HAS BEEN A GROUP PRESIDENT AT WESTINGHOUSE WHERE HE HEADED THE PITTSBURGH COMPANY'S POWER SYSTEMS BUSINESS AND SEVERAL OTHER UNITS HE SUCCEEDS JACK L HECKEL 62 WHO IS RETIRING MR YASINSKY ALSO WAS NAMED A DIRECTOR SUCCEEDING MR HECKEL EARLIER THIS YEAR MR YASINSKY WAS CONSIDERED AN INSIDE CONTENDER FOR THE TOP JOB AT WESTINGHOUSE WHEN PAUL E LEGO STEPPED DOWN AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN THE MIDST OF FINANCIAL TROUBLES AND PRESSURE FROM SHAREHOLDERS HOWEVER THE JOB ULTIMATELY WENT TO AN OUTSIDER MICHAEL H JORDAN FORMER HEAD OF PEPSICO INC'S INTERNATIONAL OPERATIONS ANALYSTS HAD EXPECTED MR YASINSKY WHO JOINED WESTINGHOUSE IN 1963 AS A YOUNG SCIENTIST TO REMAIN AT THE COMPANY WESTINGHOUSE SAID IT HAS ELIMINATED THE GROUP PRESIDENT LEVEL THE BUSINESSES THAT MR YASINSKY OVERSAW ENERGY SYSTEMS POWER GENERATION ENVIRONMENTAL SERVICES GOVERNMENT OPERATIONS AND WESTINGHOUSE SAVANNAH RIVER CO NOW WILL REPORT DIRECTLY TO A NEWLY FORMED EXECUTIVE OFFICE CONSISTING OF MR JORDAN AND GARY M CLARK PRESIDENT MR JORDAN HAS BEGUN ASSEMBLING A TOPMANAGEMENT TEAM AND IS SEEKING A NEW CHIEF FINANCIAL OFFICER TO SUCCEED WARREN H HOLLINSHEAD WHO IS TAKING EARLY RETIREMENT SEPARATELY WESTINGHOUSE SAID MAURICE C SARDI 58 CHAIRMAN OF THE KNOLL GROUP THE COMPANY'S OFFICEFURNITURE UNIT WILL TAKE EARLY RETIREMENT AT THE END OF THE YEAR WESTINGHOUSE PREVIOUSLY ANNOUNCED PLANS TO SELL THE FURNITURE UNIT 9310200080 931020 MARKETING BRIEF TIMES MIRROR CO LOS ANGELES TIMES SETS PLAN TO REDUCE ITS STAFF BY 100 THE LOS ANGELES TIMES PLANS TO CUT AT LEAST 100 JOBS THROUGH A THIRD ROUND OF VOLUNTARYSEVERANCE PROGRAMS REFLECTING ONGOING TROUBLES IN THE RECESSIONBATTERED SOUTHERN CALIFORNIA MARKET THE TIMES MIRROR CO FLAGSHIP NEWSPAPER SAID THE LATEST WAVE OF BUYOUTS IS EXPECTED TO SAVE AT LEAST 5 MILLION A YEAR THE CUTS ARE EXPECTED TO ELIMINATE 30 FULLTIME EDITORIAL JOBS INCLUDING SOME IN THE PAPER'S REGIONAL SECTIONS THAT AREN'T PUBLISHED DAILY IN A MEMO TO THE STAFF PUBLISHER DAVID LAVENTHOL SAID THE COMPANY HAS REDUCED ITS FULLTIME STAFF BY 23 TO A CURRENT 5000 SINCE THE RECESSION BEGAN IN 1990 THE CURRENT ROUND OF BUYOUTS ALSO WILL AFFECT WORKERS IN THE TRANSPORTATION MAILROOM FLEETOPERATIONS SECURITY AND FINANCE DEPARTMENTS THE MEMO SAID IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE TIMES MIRROR CLOSED AT 32625 A SHARE DOWN 625 CENTS 9310200079 931020 BUSINESS BRIEF NL INDUSTRIES INC COMPANY FORMS VENTURE WITH IMPERIAL CHEMICALS NL INDUSTRIES INC HOUSTON SAID IT COMPLETED THE FORMATION OF A MANUFACTURING JOINT VENTURE TO PRODUCE TITANIUM DIOXIDE PIGMENTS WITH A UNIT OF IMPERIAL CHEMICAL INDUSTRIES PLC LONDON THE PIGMENT AND SPECIALTY CHEMICALS MAKER SAID THE JOINT VENTURE WILL BE EQUALLY OWNED BY UNITS OF THE TWO COMPANIES AND WILL OPERATE A LOUISIANA TITANIUM DIOXIDE PIGMENTS PLANT NOW OWNED BY NL INDUSTRIES' KRONOS LOUISIANA UNIT NL INDUSTRIES SOLD 50 OF ITS INTEREST IN THE PLANT TO IMPERIAL CHEMICALS' TIOXIDE GROUP FOR 205 MILLION THE PLANT HAS THE CAPACITY TO PRODUCE 100000 METRIC TONS A YEAR OF TITANIUM DIOXIDE A METRIC TON EQUALS 220462 POUNDS IN A RECENT PROSPECTUS THE COMPANY SAID THE JOINT VENTURE PARTNERS WILL EXCHANGE PROPRIETARY PROCESSES AND TECHNOLOGIES AND NL INDUSTRIES' EXISTING DEBT OF 215 MILLION INCURRED TO BUILD THE PLANT WILL BE REPAID IN CONNECTION WITH FORMATION OF THE VENTURE 9310200078 931020 BUSINESS BRIEF MIDAMERICAN WASTE SYSTEMS INC FAVORABLE RULING IS RECEIVED IN PROJECT TO BUILD LANDFILL MIDAMERICAN WASTE SYSTEMS INC WON A RULING IN ITS BID TO BUILD A LANDFILL ON A CAMPO BAND OF MISSION INDIANS RESERVATION IN SAN DIEGO COUNTY CALIF THE US DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA DENIED THE COUNTY'S REQUEST FOR A PRELIMINARY INJUNCTION TO HALT THE PROJECT THE COUNTY HAD ALLEGED THAT AN ENVIRONMENTAL IMPACT STATEMENT FOR THE PROJECT DIDN'T MEET REGULATORY STANDARDS AND THAT IT RELIED ON FAULTY SCIENCE IN HER RULING JUDGE IRMA GONZALES SAID SHE DENIED THE PRELIMINARY INJUNCTION BECAUSE IT DOES NOT APPEAR LIKELY THAT THE COUNTY WILL SUCCEED ON THE MERITS OF THE CASE MIDAMERICAN A NONHAZARDOUS SOLID WASTE MANAGEMENT CONCERN BASED IN CANAL WINCHESTER OHIO SAID IT PLANS TO BEGIN CONSTRUCTION OF THE LANDFILL BY YEAR END OR IN THE FIRST QUARTER OF 1994 SAN DIEGO COUNTY OFFICIALS COULDN'T BE REACHED FOR COMMENT LATE YESTERDAY 9310200077 931020 SMALL STOCK FOCUS PROFITTAKING SENDS PRICES PLUMMETING ON SIXTH ANNIVERSARY OF MARKET CRASH BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK IT WASN'T THE CRASH OF 1987 BUT IT WASN'T PRETTY PRICES TUMBLED ON THE SIXTH ANNIVERSARY OF THE CRASH AS MARKET PLAYERS SCRAMBLED TO TAKE PROFITS AFTER LAST WEEK'S SHARP MOVE UPWARD TECHNOLOGY STOCKS LED THE FREE FALL ALTHOUGH THE DECLINE WAS BROADBASED THE RUSSELL 2000 INDEX WHICH MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION STORADED OVER THE COUNTER AND ON THE MAJOR EXCHANGES PLUNGED 362 POINTS OR 139 TO FINISH AT 25595 THE NASDAQ COMPOSITE PLUMMETED 1420 POINTS OR 181 TO END AT 76871 IT WAS THE BIGGEST PLUNGE BY BOTH INDEXES SINCE APRIL 26 DECLINING ISSUES PUMMELED ADVANCERS 1928 TO 1101 ON NASDAQ NATIONAL MARKET VOLUME OF 309541400 SHARES UP FROM 291105800 YESTERDAY TOTAL NASDAQ VOLUME WAS 378732000 SHARES COMPARED WITH 343721200 YESTERDAY BUT MARKET WATCHERS AREN'T ALARMED THEY AGREE THAT AFTER THE HUGE RUNUP OF LATE PARTICULARLY AMONG SMALLER ISSUES A SLIGHT CORRECTION IS TO BE EXPECTED AFTER A PRETTY GOOD RUN IT'S NOT UNUSUAL TO SEE SOME PROFITTAKING AND SOME BACKING AND FILLING SAID GEORGE BROWN VICE PRESIDENT OF EQUITY TRADING AT KIDDER PEABODY & CO THIS MAY BE A LITTLE OVERDONE BUT THEN THEY WERE OVERDONE TO THE UPSIDE LAST WEEK ACCORDING TO GREGORY A NIE A TECHNICAL ANALYST AT KEMPER SECURITIES PART OF THE DAY'S LOSSES WERE DUE TO PROFITTAKING BUT HE SAID SMALL STOCKS FELL FURTHER IN THE MIDAFTERNOON AFTER THE DOW JONES INDUSTRIAL AVERAGE FAILED TO SUSTAIN A MOVE PAST ITS RECORD HIGH OF 365209 THE INDUSTRIALS FINISHED DOWN 699 TO 363532 MR NIE SAID KEMPER SEES AN OVERALL MARKET CORRECTION OF 10 IN THE NEXT THREE TO SIX MONTHS ALTHOUGH HE SAID SMALLCAP ISSUES COULD PULL BACK FURTHER BUT BRADLEY E TURNER CHAIRMAN OF THE INVESTMENT POLICY COMMITTEE AT MCDONALD & CO SECURITIES SAID THE UNDERLYING ECONOMIC BACKDROP IS STILL VERY FAVORABLE FOR THE SMALLCAP SEGMENT OF THE MARKET WITH SLOW GROWTH ECONOMICALLY PEOPLE LOOK TO THE SMALLER AND MIDCAP STOCKS THAT HAVE NICHES TECHNOLOGY STOCKS ENDURED A DAY OF HARD KNOCKS IMPROVED EARNINGS BY LATTICE SEMICONDUCTOR WERE IGNORED AS THE STOCK FELL 2 3/8 TO 19 5/8 THE HILLSBORO ORE COMPANY SAID IT EARNED 32 CENTS A SHARE IN ITS FISCAL SECOND QUARTER UP FROM 22 CENTS A YEAR EARLIER PLATINUM SOFTWARE SAGGED 5 TO 28 1/2 ALTHOUGH IT REPORTED THAT PROFIT IN ITS FISCAL FIRST QUARTER SWELLED TO 11 CENTS A SHARE FROM THREE CENTS A YEAR EARLIER THE IRVINE CALIF COMPANY'S EARNINGS WERE IN LINE WITH ANALYSTS' EXPECTATIONS BTU INTERNATIONAL OF NORTH BILLERICA MASS DROPPED 1/2 TO 2 1/2 DESPITE SLIGHTLY BETTER THIRDQUARTER EARNINGS SEQUOIA SYSTEMS MARLBOROUGH MASS EASED 7/16 TO 4 1/16 AND CYPRESS SEMICONDUCTOR NYSE OF SAN JOSE CALIF FELL 1 TO 11 1/4 SPECTRUM INFORMATION TECHNOLOGIES TOPPED THE NASDAQ MOSTACTIVE LIST FOR THE SECOND STRAIGHT DAY ON VOLUME OF ABOUT 159 MILLION SHARES ABOVE THE AVERAGE 25 MILLION SHARES TRADED DAILY THE MANHASSET NY DEVELOPER OF WIRELESS DATATRANSMISSION TECHNOLOGY DROPPED 1 5/8 TO 9 1/2 AFTER GAINING 3 1/2 OR 459 YESTERDAY OTHER COMMUNICATIONS STOCKS ALSO SLID TCA CABLE TV BASED IN TYLER TEXAS SLIPPED 1 1/8 TO 27 7/8 LINCOLN TELECOMMUNICATIONS OF LINCOLN NEB SKIDDED 2 1/4 TO 37 AND AMERICAN MOBILE SYSTEMS WOODLAND HILLS CALIF DROPPED 2 1/4 TO 20 1/4 A PRUDENTIAL SECURITIES DOWNGRADE TO HOLD FROM BUY SENT EMPI'S PRICE DOWN 4 TO 30 THE ST PAUL MINN COMPANY MAKES BIOMEDICAL DEVICES OTHER HEALTHCARE STOCKS ALSO SOLD OFF IMMUNOGEN OF CAMBRIDGE MASS FELL 1 TO 8 3/4 MEDIMMUNE BASED IN GAITHERSBURG MD LOST 2 1/4 TO 21 AND SOMATOGEN OF BOULDER COLO SANK 3/4 TO 12 3/4 CLUB CAR CLOSED AT 19 3/8 ABOVE ITS OFFERING PRICE OF 17 1/2 AFTER THE CLOSE YESTERDAY THE MARTINEZ GA GOLFCART COMPANY EXPECTS TO USE PROCEEDS PLUS A TERM LOAN AND CREDIT FACILITY TO BUY BACK 982 MILLION OF SENIOR NOTES AND PAY FEES CONNECTED TO THE REFINANCING POLLO TROPICAL LEAPED TO 19 1/8 FROM ITS OFFERING PRICE OF 13 1/2 THE MIAMIBASED COMPANY OFFERED 175 MILLION SHARES THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES THE COMPANY HAD EXPECTED THE SHARES TO BE OFFERED BETWEEN 8 AND 12 IT OWNS AND OPERATES QUICKSERVICE RESTAURANTS IN SOUTH FLORIDA AL LABORATORIES NYSE DROPPED 3 7/8 TO 14 7/8 THE FORT LEE NJ GENERICDRUG CONCERN SAID IT EXPECTS THIRDQUARTER EARNINGS TO BE LESS THAN HALF THE NET FROM CONTINUING OPERATIONS OF 13 CENTS PER DILUTED SHARE IT REPORTED A YEAR EARLIER COACHMEN INDUSTRIES NYSE EDGED UP 1 1/8 TO 14 1/4 ON IMPROVED THIRDQUARTER EARNINGS OF 61 CENTS A SHARE A YEAR EARLIER THE ELKHART IND MANUFACTURER OF RECREATIONAL VEHICLES EARNED 50 CENTS ARKANSAS BEST OF FORT SMITH ARK ADDED 1 TO 12 1/2 FOLLOWING ITS RELEASE OF IMPROVED THIRDQUARTER EARNINGS OF 38 CENTS A FULLY DILUTED SHARE UP FROM 30 CENTS THE HOLDING COMPANY HAS SUBSIDIARIES THAT PROVIDE MOTOR CARRIER OPERATIONS NASDAQ NATIONAL MARKET STOCKS THAT HAVE HIT NEW HIGHS FOR THE YEAR TO DATE TOTAL 105 WHILE 31 ISSUES HAVE HIT NEW LOWS 9310200076 931020 BUSINESS BRIEF KELLOGG CO FOOD COMPANY SEEKS BUYER FOR MRS SMITH'S PIE LINE KELLOGG CO SAID IT IS SEEKING A BUYER FOR ITS MRS SMITH'S FROZENPIE BUSINESS AND IS REORGANIZING ITS FROZEN WAFFLE AND OTHER ANCILLARY PRODUCTS INTO A CONVENIENCE FOODS DIVISION THE PIE BRAND WHICH ENJOYS A 60 SHARE OF THE US MARKET EMPLOYS ABOUT 500 PEOPLE PRIMARILY IN A POTTSTOWN PA PLANT KELLOGG BASED IN BATTLE CREEK MICH SAID IT DECIDED IN AUGUST TO DIVEST THE BUSINESS TO BETTER CONCENTRATE ON CEREAL AND OTHER BREAKFAST PRODUCTS KELLOGG WOULDN'T DISCLOSE FROZENPIE SALES BUT JOHN MCMILLIN FOOD INDUSTRY ANALYST AT PRUDENTIAL SECURITIES ESTIMATED THEM AT BETWEEN 150 MILLION AND 170 MILLION DOWN FROM A COUPLE OF YEARS AGO HE SAID MANY SUPERMARKETS OPERATE INSTORE BAKERIES WHICH MEET CONSUMER DESIRES FOR FRESH BAKED GOODS THE REORGANIZATION WILL REMOVE THE EGGO WAFFLE OPERATION FROM THE MRS SMITH'S FROZEN PIE CO UNIT AND CONSOLIDATE IT WITH POPTARTS TOASTER PASTRIES NUTRIGRAIN BARS AND OTHER NONCEREAL CONVENIENCE FOODS INTO KELLOGG USA 9310200075 931020 BUSINESS BRIEF MEDIA VISION INC MULTIMEDIA FIRM'S NET ROSE ABOUT 17FOLD IN 3RD PERIOD MEDIA VISION INC SAID THIRDQUARTER NET INCOME SOARED ABOUT 17FOLD TO 53 MILLION OR 36 CENTS A SHARE EXCEEDING THE MULTIMEDIA COMPANY'S OWN EXPECTATIONS THAT COMPARES WITH A YEAREARLIER PROFIT OF 300000 OR THREE CENTS A SHARE IN SEPTEMBER THE FREMONT CALIF COMPANY SAID IT EXPECTED TO EARN AS MUCH AS 33 CENTS A SHARE THE MAKER OF COMPONENTS USED TO ENHANCE SOUND AND IMAGES ON PERSONAL COMPUTERS SAID SALES WERE STRONG ACROSS THE BOARD ON ITS PRODUCTS WHICH ARE RIDING THE WAVE OF SURGING MULTIMEDIA COMPUTER APPLICATIONS FOR THE QUARTER REVENUE ROSE MORE THAN THREEFOLD TO 643 MILLION FROM 173 MILLION MEDIA VISION STOCK CLOSED AT 31375 A SHARE DOWN 1625 OR 49 IN NASDAQ TRADING YESTERDAY 9310200074 931020 BUSINESS BRIEF REEBOK INTERNATIONAL LTD NET FELL 14 IN 3RD QUARTER AMID SOFT MARKET CHARGES REEBOK INTERNATIONAL LTD SAID THIRDQUARTER NET INCOME FELL 14 TO 639 MILLION REFLECTING A SOFT ATHLETIC FOOTWEAR MARKET AND ADDITIONAL CHARGES RELATED TO THE SALE OF TWO BUSINESSES EARNINGS PER SHARE HELPED BY A STOCK REPURCHASE PROGRAM DECLINED ONLY 8 TO 74 CENTS A SHARE FROM 80 CENTS THE STOUGHTON MASS COMPANY HAD TAKEN A 1354 MILLION RESTRUCTURING CHARGE LAST YEAR PARTLY IN ANTICIPATION OF THE SALE OF BOSTON WHALER ITS BOATMAKING SUBSIDIARY AND ELLESSE USA A FOOTWEAR AND APPAREL UNIT BUT REEBOK SAID THE SALE OF THE TWO CONCERNS RESULTED IN ADDITIONAL AFTERTAX LOSSES OF ABOUT 7 MILLION SALES SLIPPED 6 TO 8085 MILLION EXCLUDING SALES OF BOSTON WHALER AND ELLESSE SALES WERE DOWN 4 TO 840 MILLION REEBOK'S FOOTWEAR SALES IN THE US FELL 20 TO 3303 MILLION WHILE APPAREL SALES JUMPED 70 TO 351 MILLION TOTAL OVERSEAS SALES ROSE 95 TO 3224 MILLION ALTHOUGH THIRDQUARTER RESULTS WERE DISAPPOINTING REEBOK EXPECTS TRENDS TO IMPROVE IN THE 1994 FIRST QUARTER 9310200073 931020 BUSINESS BRIEF TEXAS UTILITIES CO CHARGE OF 260 MILLION SET AFTER RATECASE AGREEMENT TEXAS UTILITIES CO SAID IT WILL TAKE A CHARGE OF 260 MILLION IN THE THIRD QUARTER TO REFLECT A RATECASE SETTLEMENT APPROVED BY THE STATE'S PUBLIC UTILITY COMMISSION THE COMMISSION APPROVED A SETTLEMENT THAT REDUCES BY 333 MILLION THE ALLOWED INVESTMENT IN COMANCHE PEAK NUCLEAR PLANT BY TEXAS UTILITIES DETAILS OF THE AGREEMENT WERE DISCLOSED LAST JULY AND THE APPROVAL BY THE PUC MARKS THE END OF THE ISSUE THE COMPANY SAID THE AGREEMENT MEANS THAT THE UTILITY HOLDING COMPANY WON'T BE ABLE TO RECOVER AND EARN A RETURN ON THE FULL AMOUNT OF ITS INVESTMENT IN COMANCHE PEAK ALMOST 12 BILLION IN 1992'S THIRD QUARTER THE COMPANY HAD NET INCOME OF 295 MILLION OR 137 A SHARE ON REVENUE OF 148 BILLION OF THE 333 MILLION 250 MILLION RELATES TO CONSTRUCTION COSTS OF THE NUCLEAR PLANT AND 83 MILLION WERE FUNDS USED FOR CONSTRUCTION IN ADDITION TEXAS UTILITIES WILL REFUND 5 MILLION IN FUEL CHARGES TO CUSTOMERS UNDER THE AGREEMENT AS PART OF THE AGREEMENT BUT NOT RELATED TO COMANCHE PEAK TEXAS UTILITIES WILL BE PERMITTED TO RECOVER 197 MILLION OF RESTRUCTURING EXPENSES FROM RATEPAYERS OVER EIGHT YEARS IT HAD REQUESTED RECOVERY OF 222 MILLION OVER THREE YEARS 9310200072 931020 BUSINESS BRIEF CHIPS & TECHNOLOGIES INC FISCAL 1ST PERIOD NET POSTED ON CUTS IN OPERATING COSTS CHIPS & TECHNOLOGIES INC POSTED NET INCOME OF 322000 OR TWO CENTS A SHARE FOR ITS FISCAL FIRST QUARTER ENDED SEPT 30 THE COMPANY'S FIRST QUARTERLY PROFIT IN THREE YEARS FOR THE YEAREARLIER PERIOD THE SAN JOSE CALIF SEMICONDUCTOR MAKER POSTED A NET LOSS OF 97 MILLION OR 63 CENTS A SHARE THE COMPANY ATTRIBUTED THE IMPROVEMENT TO SHARP CUTS IN OPERATING EXPENSES WHICH IT SAID FELL TO 8 MILLION FROM A YEAREARLIER 179 MILLION REVENUE SLID 19 TO 212 MILLION FROM 263 MILLION DUE IN PART TO DISCONTINUED BUSINESSES THE COMPANY SAID ITS CHIPS FOR NOTEBOOK COMPUTERS CONTINUED TO SELL WELL THE RESULTS WERE REPORTED AFTER MARKETS CLOSED 9310200071 931020 BUSINESS BRIEF SYBASE INC THIRDQUARTER NET ROSE 88 ON 67 INCREASE IN REVENUE SYBASE INC REPORTED THAT THIRDQUARTER NET INCOME JUMPED A HIGHERTHANEXPECTED 88 TO 11 MILLION OR 43 CENTS A SHARE ON A STRONG GAIN IN REVENUE ANALYSTS HAD EXPECTED THE EMERYVILLE CALIF SOFTWARE CONCERN TO REPORT NET INCOME OF 36 CENTS TO 40 CENTS A SHARE DESPITE BEATING WALL STREET'S ESTIMATES SYBASE SHARES SLIPPED 325 OR 45 IN NATIONAL OVERTHECOUNTER TRADING CLOSING AT 6975 RESULTS WERE RELEASED AFTER TRADING ENDED REVENUE IN THE LATEST PERIOD ROSE 67 TO 1125 MILLION FROM 674 MILLION A YEAR EARLIER IN THE PREVIOUS YEAR'S QUARTER SYBASE EARNED 58 MILLION OR 24 CENTS A SHARE SYBASE ALSO ANNOUNCED A 2FOR1 STOCK SPLIT PAYABLE NOV 19 TO HOLDERS OF RECORD NOV 1 THE COMPANY CURRENTLY HAS ABOUT 259 MILLION SHARES OUTSTANDING 9310200070 931020 BUSINESS BRIEF ENRON OIL & GAS CO POTENTIALLY SIGNIFICANT' FIND OF GAS IS MADE OFF TEXAS ENRON OIL & GAS CO SAID IT MADE A POTENTIALLY SIGNIFICANT NATURALGAS DISCOVERY IN THE GULF OF MEXICO ABOUT 10 MILES SOUTH OF PORT O'CONNOR TEXAS THE DISCOVERY WELL MATAGORDA ISLAND 556 WELL A9 HAS BEEN DRILLED AND COMPLETED THE COMPANY SAID A WELL DRILLED 5200 FEET TO THE EAST MATAGORDA ISLAND 556 WELL C16 HAS EXTENDED THE DISCOVERY THE A9 WELL ENCOUNTERED FOUR NATURALGAS ZONES AT DEPTHS BELOW 7800 FEET ENRON SAID THE WELL IS CURRENTLY FLOWING AT THE RATE OF 10 MILLION CUBIC FEET PER DAY OF GAS THROUGH A 29/64THINCH CHOKE ENRON SAID THE C16 WELL ENCOUNTERED TWO NATURALGAS ZONES AT DEPTHS BELOW 8500 FEET ENRON SAID IT IS DRILLING DEEPER AND EXPECTS ADDITIONAL DRILLING IN THE AREA THE WELL WILL BE PLACED ON PRODUCTION BEFORE THE END OF THE YEAR HOUSTONBASED ENRON IS THE OPERATOR OF BOTH WELLS ITS INTEREST IN THE A9 IS 50 AND 61 IN THE C16 9310200069 931020 BUSINESS BRIEF ROHM & HAAS CO LOSS TOTALING 21 MILLION IS REPORTED FOR 3RD QUARTER ROHM & HAAS CO PHILADELPHIA POSTED A 21 MILLION LOSS FOR THE THIRD QUARTER BECAUSE OF CHARGES COMPRISING COSTS FOR A LANDFILL CLEANUP IN NEW JERSEY AND A WRITEDOWN OF A KENTUCKY PLASTICS PLANT THE CHARGES TOTALING 50 MILLION OR 74 CENTS A SHARE WERE ANNOUNCED LAST WEEK THE SPECIALTY CHEMICALS COMPANY'S LOSS EQUAL TO 34 CENTS A SHARE COMPARES WITH A PROFIT OF 51 MILLION OR 72 CENTS A SHARE THE YEAR BEFORE EXCLUDING THE CHARGES NET WOULD HAVE BEEN 29 MILLION OR 40 CENTS A SHARE DOWN 43 FROM THE 1992 PERIOD SALES MEANWHILE FELL 1 TO 799 MILLION J LAWRENCE WILSON CHAIRMAN SAID LOWER PRICES IN EUROPE AND JAPAN RESULTING FROM POOR ECONOMIC CONDITIONS AND WEAKER EUROPEAN CURRENCIES WERE THE PRIMARY REASONS FOR THE DECLINE IN SALES AND EARNINGS IN THE FOURTH QUARTER WE DON'T SEE ANY DRAMATIC IMPROVEMENT IN GLOBAL ECONOMIES MR WILSON SAID 9310200068 931020 BUSINESS BRIEF UNISYS CORP THIRDQUARTER NET ROSE 23 LARGELY FROM COST CUTTING UNISYS CORP'S THIRDQUARTER EARNINGS ROSE 23 LARGELY REFLECTING COSTCUTTING MEASURES IN THE FACE OF WEAK MARKETS IN EUROPE AND JAPAN ALTHOUGH REVENUE WAS HURT BY FOREIGNCURRENCY EXCHANGE RATES THE BLUE BELL PABASED INFORMATION SYSTEMS AND COMPUTER CONCERN REPORTED NET INCOME OF 841 MILLION OR 33 CENTS A SHARE UP FROM 683 MILLION OR 23 CENTS A SHARE REVENUE FELL TO 181 BILLION FROM 207 BILLION WITH 35 OF THE DECLINE RELATING TO NEGATIVE CURRENCY TRANSLATIONS THE COMPANY SAID ORDERS SHOWED STRONG GROWTH IN THE US COMMERCIAL BUSINESS THE PACIFIC RIM EXCLUDING JAPAN AND LATIN AMERICA BUT WAS MORE THAN OFFSET BY SIGNIFICANT DECLINES IN THE EUROPEAN COMMERCIAL BUSINESS AND IN THE US DEFENSE BUSINESS UNISYS SAID REVENUE AND ORDERS FOR INFORMATION SERVICES AND SYSTEMS INTEGRATION WERE STRONG DURING THE THIRD QUARTER BUT ITS CLIENTSERVER REVENUE DECLINED AND IS BELOW EXPECTATIONS THE STOCK FELL 125 CENTS TO 1175 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE 9310200067 931020 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 CHEMICAL BANKING CORP 150 MILLION OF SUBORDINATED BANK NOTES DUE NOV 1 2008 PRICED AS 6125S AT 9983 TO YIELD 6142 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 90 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF MULTICOUPON STEPUP NOTES DUE OCT 27 2000 PRICED AT PAR TO YIELD 46 ACCORDING TO MCM CORPORATEWATCH THE COUPON STEPS UP TO 5 IN THE SECOND AND THIRD YEARS TO 515 IN THE FOURTH AND FIFTH YEARS AND TO 625 IN THE SIXTH AND SEVENTH YEARS THE NOTES NONCALLABLE FOR ONE YEAR WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO IMCERA GROUP INC 100 MILLION OF NOTES DUE OCT 15 2003 PRICED AS 6S AT 99826 TO YIELD 6023 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 77 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PAINEWEBBER GROUP INC 200 MILLION OF NOTES DUE NOV 1 2005 PRICED AS 65S AT 99628 TO YIELD 6545 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 129 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY PAINEWEBBER INC PATHMARK STORES INC 560 MILLION OF DEBT IN TWO PARTS PRICED BY UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 440 MILLION OF SENIOR SUBORDINATED NOTES DUE MAY 1 2003 WAS PRICED AS 9625S AT 99233 TO YIELD 975 THE NOTES NONCALLABLE FOR FIVE YEARS WERE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE SECOND TRANCHE 120 MILLION OF JUNIOR SUBORDINATED DEFERREDCOUPON NOTES DUE NOV 1 2003 WAS PRICED AT 53274 TO YIELD 1075 THE NOTES NONCALLABLE FOR SIX YEARS WERE RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P PATHMARK IS A SUPERMARKETS GENERAL HOLDINGS CORP UNIT SERVICE MERCHANDISE CO 100 MILLION OF SENIOR NOTES DUE JAN 15 2001 PRICED AS 8375S AT 99621 TO YIELD 845 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 3625 BASIS POINTS ABOVE TREASURYS RATED BA1 BY MOODY'S AND DOUBLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO INSITE VISION INC INITIAL PUBLIC OFFERING OF THREE MILLION COMMON SHARES PRICED 11 EACH ACCORDING TO THE COMPANY MORGAN STANLEY & CO AND ROBERTSON STEPHENS & CO ARE THE MANAGERS CHICAGO 643 MILLION OF 1993 SERIES AIRPORT REVENUE REFUNDING BONDS IN TWO PARTS PRICED BY A GOLDMAN SACHS & CO GROUP INCLUDED ARE 3232 MILLION OF 1993 SERIES A GENERAL AIRPORT REVENUE REFUNDING BONDS WHICH ARE PRICED TO YIELD FROM 48 IN 2004 TO 539 IN 2016 THE BONDS ARE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THERE ARE ALSO 3198 MILLION OF 1993 SERIES C1 AND SERIES C2 GENERAL AIRPORT SECONDLIEN REVENUE REFUNDING BONDS PRICED TO YIELD FROM 5 IN 2007 TO 529 IN 2018 THESE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P MASSACHUSETTS 200 MILLION OF CONSOLIDATED LOAN OF 1993 SERIES B GENERALOBLIGATION BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 365 IN 1997 TO 514 IN 2013 MOODY'S RATED THE ISSUE SINGLEA AND S&P ASSIGNED A SINGLEAPLUS RATING SAN JOAQUIN COUNTY CALIF 1093 MILLION OF SERIES 1993 CERTIFICATES OF PARTICIPATION PRICED BY A BEAR STEARNS & CO GROUP THE CERTIFICATES ARE PRICED TO YIELD FROM 26 IN 1994 TO 521 IN 2019 THEY ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 535 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 19931628 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 705 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 359 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1630 IS BACKED BY THE AGENCY'S GOLD STRIP 156 WHICH IN TURN IS BACKED BY 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 705 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993227 IS BACKED BY THE AGENCY'S 55 BALLOON MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 61 AND WEIGHTED AVERAGE MATURITY OF 82 MONTHS BANCO DO NORDESTE DO BRASIL SA BRAZIL 75 MILLION OF 9 EUROBONDS DUE NOV 12 1996 AT ISSUE AND FIXED REOFFER PRICE PAR VIA LEAD UNDERWRITER CREDIT SUISSE FIRST BOSTON LTD BONDS YIELD MARGIN OF 490 BASIS POINTS OVER COMPARABLE US TREASURY FEES 0875 INTEREST PAYABLE SEMIANNUALLY COMIT FINANCE JERSEY LTD ITALIAN PARENT 100 MILLION OF COLLARED SUBORDINATED FLOATINGRATE EURONOTES DUE NOV 30 2005 AT ISSUE AND FIXED REOFFER PRICE 999 VIA LEHMAN BROTHERS INTERNATIONAL INTEREST PAID SEMIANNUALLY AT SIXMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS LESS 025 POINT SUBJECT TO MINIMUM COUPON 5375 AND MAXIMUM 825 GUARANTOR BANCA COMMERCIALE ITALIANA FEES 05 FP CORP JAPAN 90 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE NOV 4 1997 WITH EQUITYPURCHASE WARRANTS CARRYING 0375 COUPON AT PAR VIA DAIWA BANK LTD EACH NOTE CARRIES 50 WARRANTS EXERCISABLE FROM NOV 18 1993 TO OCT 21 1997 AT EXPECTED 25 PREMIUM ABOVE CLOSING SHARE PRICE OCT 25 WHEN TERMS FIXED FEES 15 INTERNATIONAL FINANCE CORP SUPRANATIONAL 10 BILLION PESETAS OF 81 EUROBONDS DUE NOV 15 1998 AT ISSUE PRICE 10121 VIA LEAD UNDERWRITER BANESTO AT COMANAGERS' BREAKEVEN PRICE 9971 BONDS YIELD 817 A SPREAD OF FIVE BASIS POINTS BELOW COMPARABLE SPANISH TREASURY FEES 1625 IRELAND SOVEREIGN 15 BILLION ESCUDOS OF 875 EUROBONDS DUE NOV 25 1998 AT ISSUE PRICE 1014 VIA LEAD BOOK RUNNER BANCO PORTUGES DE INVESTIMENTO SA AT COMANAGERS' BREAKEVEN PRICE 999 BONDS YIELD 878 A SPREAD OF 10 BASIS POINTS BELOW COMPARABLE PORTUGUESE TREASURY FEES 1625 NATIONAL BANK OF HUNGARY HUNGARY 50 MILLION 8 EUROBONDS DUE JUNE 10 1998 AT ISSUE PRICE 10197 VIA BANKERS TRUST INTERNATIONAL BONDS TO TRADE INTERCHANGEABLY WITH 150 MILLION ISSUE OUTSTANDING LAUNCHED MAY 18 1993 BONDS PRICED TO YIELD MARGIN OF 240 BASIS POINTS OVER 475 US TREASURY DUE SEPT 1998 FEES UNDISCLOSED INTEREST PAYABLE SEMIANNUALLY NEC DO BRASIL SA JAPANESE PARENT 60 MILLION OF 925 EUROBONDS DUE OCT 28 1998 AT ISSUE AND FIXED REOFFER PRICE PAR VIA BEAR STEARNS INTERNATIONAL LTD AT REOFFER PRICE BONDS YIELD MARGIN OF 457 BASIS POINTS OVER COMPARABLE US TREASURY FEES 125 INTEREST PAYABLE SEMIANNUALLY DE NEDERLANDSE INVESTERINGSBANK VOOR ONTWIKKELINGSLANDEN NOB NETHERLANDS 200 MILLION DUTCH GUILDERS OF 5875 EUROBONDS DUE NOV 16 2003 AT ISSUE PRICE 1004 VIA DE NATIONALE INVESTERINGSBANK NV REOFFERED AT 996 TO YIELD 593 A SPREAD OF 15 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN GUARANTOR GOVERNMENT OF NETHERLANDS FEES ONE NIHON NOHYAKU CO JAPAN 70 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE NOV 18 1997 WITH EQUITYPURCHASE WARRANTS CARRYING 0375 COUPON AT PAR VIA NIKKO BANK SWITZERLAND LTD EACH NOTE CARRIES 50 WARRANTS EXERCISABLE FROM NOV 30 1993 TO NOV 11 1997 FINAL TERMS FIXED OCT 25 FEES 15 9310200066 931020 BUSINESS BRIEF UNION CAMP CORP FORESTPRODUCTS FIRM'S NET FELL 76 IN THIRD QUARTER UNION CAMP CORP REPORTED A 76 PLUNGE IN THIRDQUARTER NET INCOME CITING A CHARGE TO REFLECT HIGHER FEDERAL TAX RATES BUT THE COMPANY ALSO REPORTED STRONG SIGNS THAT OUR PAPER AND PACKAGING MARKETS ARE AT LONG LAST RESPONDING TO AN IMPROVING ECONOMIC ENVIRONMENT THE WAYNE NJ FORESTPRODUCTS COMPANY SAID THIRDQUARTER NET INCOME WAS 49 MILLION OR SEVEN CENTS A SHARE OFF FROM 208 MILLION OR 30 CENTS A SHARE A YEAR EARLIER SALES OF 7787 MILLION FOR THE LATEST PERIOD WERE ABOUT FLAT WITH THE YEAREARLIER 7803 MILLION NET INCOME FOR THE LATEST QUARTER INCLUDED A GAIN OF 4 MILLION OR SIX CENTS A SHARE FROM THE SALE OF LAND THE BOTTOM LINE ALSO INCLUDED A CHARGE OF 16 MILLION OR 23 CENTS A SHARE THE COMPANY SAID HIGHER TAX RATES PROMPTED IT TO SET ASIDE MORE FUNDS FOR DEFERRED TAXES OPERATING PROFIT FELL 8 IN THE LATEST QUARTER TO 563 MILLION ALTHOUGH EARNINGS REMAIN AT UNSATISFACTORY LEVELS WE EXPECT IMPROVED OPERATIONS IN THE COMING MONTHS CHAIRMAN GENE CARTLEDGE SAID 9310200065 931020 BUSINESS BRIEF GENERAL MOTORS CORP CREDIT CARDS WILL BE OFFERED IN UK TO BOOST UNIT'S SALES GENERAL MOTORS CORP SAID IT WILL OFFER ITS MASTERCARD AND VISA CREDIT CARDS IN THE UK TO HELP ITS VAUXHALL MOTORS LTD UNIT SELL VEHICLES GM ALREADY HAS A CREDITCARD PROGRAM IN THE US AND CANADA THE GM CARD WILL BE ISSUED BY HFC BANK A SUBSIDIARY OF HOUSEHOLD INTERNATIONAL INC WHICH ISSUES THE GM CARD IN THE US CARD HOLDERS IN THE UK CAN EARN 5 IN REBATES FROM EACH CREDITCARD TRANSACTION THIS REBATE CAN TOTAL AS MUCH AS 500 748 A YEAR TOWARD THE PURCHASE OF A VAUXHALL CAR OR VAN THE GM CARD FEATURES NO ANNUAL FEE FOR AT LEAST THE FIRST YEAR AND A 199 INTEREST RATE THAT COMPARES WITH A UK CREDITCARD INTERESTRATE AVERAGE OF 232 9310200064 931020 AHMANSON'S PROFIT CLIMBS LOSS POSTED BY GREAT WESTERN BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL ONE OF CALIFORNIA'S GIANT THRIFT COMPANIES HF AHMANSON & CO REPORTED IMPROVED BUT STILL MEDIOCRE THIRDQUARTER EARNINGS ON LOWER LOANLOSS RESERVES WHILE ANOTHER ONE GREAT WESTERN FINANCIAL CORP POSTED AN UNEXPECTED LOSS GREAT WESTERN'S LOSS AMOUNTED TO 175 MILLION OR 18 CENTS A SHARE COMPARED WITH NET INCOME OF 317 MILLION OR 22 CENTS A SHARE A YEAR EARLIER THE LOSS INCLUDED A SPECIAL 100 MILLION PROVISION FOR THREE UNCOMPLETED BULK SALES OF 475 MILLION IN TROUBLED REALESTATE LOANS THE CHATSWORTH CALIF COMPANY PREVIOUSLY ANNOUNCED A 200 MILLION BULK SALE WHICH RESULTED IN A 50 MILLION LOANLOSS PROVISION ANALYSTS HAD BEEN EXPECTING GREAT WESTERN TO EARN 30 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC NONPERFORMING ASSETS AT GREAT WESTERN DECLINED TO 144 BILLION FROM 19 BILLION A YEAR EARLIER AND 195 BILLION IN THE SECOND QUARTER GREAT WESTERN'S RETURN ON ASSETS WAS 07 ONCE THE NEWLY ANNOUNCED LOAN SALES ARE COMPLETED THE THRIFT EXPECTS TO HAVE UNLOADED 14 BILLION IN BAD LOANS THIS YEAR COMPARED WITH 158 MILLION IN 1992 THAT WOULD BRING NONPERFORMING ASSETS TO JUST ABOVE 3 OF TOTAL ASSETS IN THE FOURTH QUARTER COMPARED WITH 375 FOR THE THIRD QUARTER AND 485 A YEAR EARLIER IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING GREAT WESTERN SHARES CLOSED AT 1875 DOWN 75 CENTS JOSEPH A JOLSON AN ANALYST AT MONTGOMERY SECURITIES SAID CALIFORNIA THRIFTS ARE STILL HOBBLED BY THE IMPACT OF THE STATE'S POOR ECONOMY ON RESIDENTIAL REAL ESTATE LOANS AND BY LOW MARGINS IN HOME LENDING THAT'S WHY THEY SEEM TO HAVE LOUSY EARNINGS COMPARED TO THE BANKS HE SAID THEY'VE REALLY BEEN KILLED BY THE ECONOMY AHMANSON PARENT OF HOME SAVINGS OF AMERICA REPORTED THAT THIRDQUARTER NET INCOME JUMPED 38 LARGELY BECAUSE OF LOWER PROVISIONS FOR LOAN LOSSES THE IRWINDALE CALIF COMPANY POSTED NET INCOME OF 70 MILLION OR 50 CENTS A SHARE COMPARED WITH 507 MILLION OR 40 CENTS A SHARE A YEAR EARLIER THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS AND MARK A RETURN TO PROFITABILITY AFTER A SECONDQUARTER LOSS CAUSED BY THE 12 BILLION BULK SALE OF BAD LOANS BUT AHMANSON'S RETURN ON ASSETS REMAINED DEPRESSED AT AN UNINSPIRING 056 CALIFORNIA'S LARGEST COMMERCIAL BANKS ARE REPORTING RETURNS OF MORE THAN 1 AHMANSON'S LOANLOSS PROVISIONS DECLINED TO 222 MILLION FROM 4379 MILLION IN THE SECOND QUARTER AND 74 MILLION A YEAR EARLIER NONPERFORMING ASSETS IN THE THIRD QUARTER TOTALED 1 BILLION FLAT FROM THE SECOND QUARTER AND DOWN FROM 26 BILLION A YEAR EARLIER DECLINING DELINQUENCIES ROBUST SALES OF FORECLOSED REAL ESTATE AND A LOWER PROVISION FOR LOAN LOSSES ARE POSITIVE SIGNS FOR THE COMPANY SAID RICHARD H DEIHL CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AHMANSON CLOSED AT 18375 DOWN 625 CENTS 9310200062 931020 BUSINESS BRIEF CALGON CARBON CORP THIRDQUARTER NET FELL 48 60 WORKERS TO FACE LAYOFFS CALGON CARBON CORP REPORTED A 48 DROP IN THIRDQUARTER NET INCOME AND ANNOUNCED PLANS TO REDUCE PRODUCTION OF ACTIVATED CARBON AND LAY OFF 60 WORKERS OR 8 OF ITS WORK FORCE THIRDQUARTER NET WAS 41 MILLION OR 10 CENTS A SHARE ON SALES OF ABOUT 66 MILLION IN THE YEARAGO PERIOD NET WAS 79 MILLION OR 19 CENTS A SHARE ON SALES OF 777 MILLION IN A STATEMENT TA MCCONOMY PRESIDENT OF THE PITTSBURGH COMPANY SAID THE RESULTS WERE DISAPPOINTING WITH SALES DOWN SUBSTANTIALLY IN EVERY APPLICATION EVERY PRODUCT LINE AND ALL GEOGRAPHIC AREAS EXCEPT JAPAN HE SAID 70 OF THE SALES DECLINE CAME IN EUROPE BECAUSE OF POOR SALES THIS YEAR IT HAS BECOME EVIDENT THAT CURRENT STAFFING LEVELS ARE TOO HIGH MR MCCONOMY SAID 9310200061 931020 BUSINESS BRIEF BOUYGUES SA CONSTRUCTION FIRM'S PROFIT FELL 27 IN THE FIRST HALF BOUYGUES SA REPORTED A 27 DROP IN ITS 1993 FIRSTHALF PROFIT AND PREDICTED THAT FULLYEAR EARNINGS WILL BE DOWN FROM 1992 THE FRENCH CONSTRUCTION AND PUBLICWORKS COMPANY HAD CONSOLIDATED NET INCOME OF 79 MILLION FRENCH FRANCS 136 MILLION DOWN FROM 108 MILLION FRANCS A YEAR EARLIER REVENUE SLIPPED 24 TO 293 BILLION FRANCS FROM 30 BILLION FRANCS BOUYGUES ATTRIBUTED ITS GLOOMY OUTLOOK TO A SEVERE CRISIS IN THE HOUSING SECTOR AND SAID THAT GOVERNMENT MEASURES TO STIMULATE THE PUBLICWORKS SECTOR STILL HAVEN'T BEEN REFLECTED IN INCREASED ORDERS BOUYGUES SAID ITS FIRSTHALF ACTIVITY HELD UP WELL DESPITE THE DEPRESSED ECONOMIC CLIMATE IT SAID ACTIVITY IN THE CONSTRUCTION AND PUBLICWORKS SECTOR IN FRANCE FELL 10 FROM A YEAR EARLIER REVENUE FROM THE GROUP'S DIVERSIFIEDACTIVITIES DIVISION FELL 12 TO 535 BILLION FRANCS AND A SIMILAR TREND IS EXPECTED FOR THE FULL YEAR THE RESULT PARTLY REFLECTED THE CIVIL WAR IN ANGOLA WHICH AFFECTED OPERATIONS OF THE BOUYGUES OFFSHORE UNIT 9310200060 931020 ABREAST OF THE MARKET STOCKS FALL WITH NASDAQ SHARES POSTING BIGGEST DROP SINCE APRIL BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCK PRICES RETREATED WITH NASDAQ ISSUES LEADING THE WAY WHILE THE DOW JONES INDUSTRIAL AVERAGE SANK A MILD 699 TO 363532 THE NASDAQ COMPOSITE INDEX SUFFERED ITS BIGGEST ONEDAY BLOW SINCE APRIL 26 SKIDDING 1420 OR 181 TO 76871 OTHER BROADBASED INDEXES POSTED MODERATE LOSSES THE STANDARD & POOR'S 500 STOCK INDEX LOST 224 TO 46621 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 144 TO 25856 DECLINING ISSUES OUTPACED ADVANCERS 1228 TO 774 ON THE BIG BOARD VOLUME ON THE EXCHANGE WAS ACTIVE AT ABOUT 2963 MILLION SHARES DOWN FROM 3294 MILLION MONDAY AFTER THE MARKET'S RECENT GAINS ANALYSTS SAID YESTERDAY'S SELLING WASN'T SURPRISING BROADBASED BIG BOARD INDEXES SET BACKTOBACK HIGHS LAST WEEK WHILE THE NASDAQ MARKET WENT ON A WEEKLONG TEAR OF FIVE STRAIGHT RECORDS EARLY WEAKNESS IN BONDS HELPED SET OFF THE SELLING YESTERDAY A RECOVERY IN BONDS LATER ALLOWED THE INDUSTRIAL AVERAGE TO CLIMB INTO POSITIVE TERRITORY FOR PART OF THE DAY BUT MOST STOCKS WERE LOWER THROUGHOUT THE SESSION A MIDDAY RALLY BRIEFLY CARRIED THE INDUSTRIALS ABOVE ITS CLOSING HIGH OF 365209 REACHED AUG 25 PEOPLE ARE LOOKING TO LOCK IN SOME PROFITS THE MARKET HAS STRUGGLED AT ITS RECORD LEVELS AND THERE DOESN'T SEEM TO BE ANY CATALYST TO MOVE HIGHER SAID JOSEPH DEMARCO MANAGING DIRECTOR OF EQUITY TRADING AT MARINVEST A UNIT OF HONGKONG & SHANGHAI BANK THE SELLING WHICH CAME ON THE SIXTH ANNIVERSARY OF THE 1987 MARKET CRASH ADDED TO ANXIETIES ABOUT THE MARKET'S PROSPECTS I DON'T LIKE THIS ACTION AT ALL IT'S BROADBASED AND IT FEELS LIKE THERE IS GOING TO BE SOME MORE DAMAGE SAID TIMOTHY HEEKIN HEAD OF BLOCK TRADING AT SALOMON BROTHERS THE PROFITTAKING WAS PARTICULARLY INTENSE IN SHARES OF TECHNOLOGY COMPANIES AND SECURITIES BROKERAGE COMPANIES BOTH SECTORS HAVE BEEN RACING HIGHER LATELY TEXAS INSTRUMENTS DROPPED 3 3/8 TO 63 3/8 HEWLETTPACKARD LOST 2 1/4 TO 70 3/4 AND MICROSOFT NASDAQ DECLINED 2 3/4 TO 80 1/4 MEANWHILE MERRILL LYNCH FELL 2 3/8 TO 93 1/2 MORGAN STANLEY SHED 3 5/8 TO 81 AND CHARLES SCHWAB LOST 1 3/4 TO 33 1/2 BANK STOCKS WERE MOSTLY LOWER EVEN THOUGH SEVERAL BIG BANKS POSTED IMPROVED EARNINGS DONALDSON LUFKIN & JENRETTE ANALYST THOMAS BROWN CUT RATINGS ON SEVERAL COMPANIES PREDICTING THAT THE TWOYEAROLD RALLY IN BANK STOCKS IS OVER AMONG LOSERS BANK OF NEW YORK FELL 1 1/4 TO 52 3/4 AND JP MORGAN & CO DROPPED 2 1/2 TO 72 BANK STOCKS TUMBLED MONDAY AFTER MORGAN CUT ITS PRIME LENDING RATE TO 55 FROM 6 SETTING OFF WORRIES ABOUT EARNINGS IN THE GROUP CITICORP THOUGH INCHED UP 1/8 TO 35 3/4 ON BIG BOARDLEADING VOLUME OF 53 MILLION SHARES AFTER THE NEW YORK BANK REPORTED THIRDQUARTER EARNINGS OF 106 A SHARE UP FROM 17 CENTS A SHARE A YEAR EARLIER ANALYSTS HAD EXPECTED CITICORP TO EARN ABOUT 75 CENTS A SHARE WELLS FARGO RALLIED 2 1/8 TO 118 3/4 IT REPORTED THIRDQUARTER NET INCOME OF 274 A SHARE COMPARED WITH 21 CENTS A SHARE A YEAR EARLIER THE SAN FRANCISCO BANKING COMPANY ALSO INCREASED ITS QUARTERLY DIVIDEND TO 75 CENTS A SHARE FROM 50 CENTS CHEMICAL BANKING MEANWHILE LOST 1 1/8 TO 40 7/8 EVEN THOUGH IT REPORTED THIRDQUARTER EARNINGS OF 155 A SHARE BEFORE EXTRAORDINARY ITEMS COMPARED WITH 98 CENTS A SHARE A YEAR EARLIER SEPARATELY THE NEW YORK COMPANY SAID ITS CHAIRMAN JOHN F MCGILLICUDDY WILL RETIRE AT YEAR END PHILIP MORRIS SKIDDED 1 1/8 TO 52 3/4 THE NEW YORK FOOD AND TOBACCO COMPANY HAD THIRDQUARTER EARNINGS OF 111 A SHARE DOWN FROM 144 A SHARE A YEAR EARLIER PRICECUTTING IN THE CIGARETTE INDUSTRY WILL MAKE FOR UNFAVORABLE EARNINGS COMPARISONS IN THE FOURTH QUARTER ALSO THE COMPANY SAID DRUG STOCKS STUMBLED EVEN THOUGH A HANDFUL OF MAJOR PLAYERS POSTED BETTERTHANEXPECTED EARNINGS PFIZER LOST 3/4 TO 63 ELI LILLY FELL 1 1/2 TO 53 3/8 AND WARNERLAMBERT DECLINED 1 3/8 TO 69 7/8 UPJOHN MANAGED A GAIN OF 3/8 TO 32 BIOTECHNOLOGY STOCKS ALSO SLUMPED GENENTECH LOST 1/2 TO 46 1/4 WHILE ON NASDAQ AMGEN DECLINED 2 1/8 TO 42 5/8 GENZYME FELL 2 1/8 TO 34 1/2 AND CHIRON SHED 3 1/2 TO 79 3/4 GTE JUMPED 1 1/8 TO 39 7/8 THE STAMFORD CONN COMMUNICATIONS COMPANY REPORTED THIRDQUARTER PROFIT OF 59 CENTS A SHARE BEFORE A CHARGE COMPARED WITH 52 CENTS A SHARE A YEAR EARLIER BELL ATLANTIC SLID 3/8 TO 64 5/8 AFTER REPORTING THAT NET INCOME FELL TO 87 CENTS A SHARE FROM 90 CENTS A SHARE A YEAR EARLIER EARNINGS INCREASED 98 EXCLUDING ONETIME ITEMS CENTEX ADDED 7/8 TO 44 1/4 THE DALLAS RESIDENTIAL HOME BUILDER REPORTED EARNINGS OF 70 CENTS A SHARE FOR THE SECOND QUARTER ENDED LAST MONTH UP FROM 57 CENTS A SHARE A YEAR EARLIER GREAT WESTERN FINANCIAL EASED 3/4 TO 18 3/4 THE CHATSWORTH CALIF SAVINGSANDLOAN CONCERN HAD A LOSS OF 18 CENTS A SHARE IN THE THIRD QUARTER A YEAR EARLIER IT HAD A PROFIT OF 22 CENTS A SHARE THE PLANNED SALE OF SOME TROUBLED REALESTATE ASSETS FORCED IT TO MAKE A LARGE PROVISION FOR LOAN LOSSES 9310200059 931020 MARKETING & MEDIA MTV REMOVES CARTOON FROM EARLYEVENING SLOT NEW YORK THE MTV CABLE NETWORK CANCELED ITS 7 PM EST DAILY AIRING OF BEAVIS AND BUTTHEAD EFFECTIVE LAST NIGHT AFTER CRITICS COMPLAINED THAT THE CARTOON'S DOLTISH CHARACTERS WERE HAVING A BAD INFLUENCE ON CHILDREN EARLIER THIS MONTH AN OHIO MOTHER SAID THE SHOW WAS TO BLAME FOR A FIRE STARTED BY HER FIVEYEAROLD SON ONE OF THE SHOW'S FANS THE FIRE KILLED THE BOY'S TWOYEAROLD SISTER FOLLOWING THAT INCIDENT MTV SAID IT WOULD REMOVE THE SHOW'S NUMEROUS REFERENCES TO FIRE THE SHOW'S CHARACTERS TEENAGE SOCIAL DEVIANTS WHO ARE MEANT TO BE SATIRICAL OFTEN CHANT FIRE IS GOOD WHILE SETTING FIRES THE HALFHOUR PROGRAM THE MOSTWATCHED SHOW ON MTV WILL NOW AIR DAILY AT 1030 PM AND ALSO IN ITS REGULAR 11 PM TIME SLOT THE CABLE NETWORK A UNIT OF VIACOM INC IS ALSO DEVELOPING A TAMER VERSION OF BEAVIS AND BUTTHEAD TO AIR IN THE EARLY TIME SLOT WHEN CHILDREN WHO WEREN'T ORIGINALLY A TARGET AUDIENCE FOR THE SHOW ARE WATCHING 9310200058 931020 BUSINESS BRIEF SCOTT PAPER CO THIRDQUARTER NET FELL 20 CORPORATE TAX RATE IS CITED SCOTT PAPER CO SAID THIRDQUARTER EARNINGS FELL 20 CITING THE EFFECTS OF THE NEW CORPORATE FEDERAL TAX RATE THE PHILADELPHIABASED MANUFACTURER OF PAPER PRODUCTS SAID NET INCOME WAS 246 MILLION OR 33 CENTS A SHARE DOWN FROM 306 MILLION OR 41 CENTS A SHARE IN THE YEAREARLIER PERIOD EXCLUDING THE EFFECT OF THE NEW TAX RATE EARNINGS ROSE 18 TO 362 MILLION OR 48 CENTS A SHARE WHICH PHILIP E LIPPINCOTT CHAIRMAN AND CHIEF EXECUTIVE ATTRIBUTED TO IMPROVED PRODUCTIVITY SCOTT PAPER SAID SALES FELL 9 IN THE QUARTER TO 12 BILLION PRIMARILY ON UNFAVORABLE FOREIGNEXCHANGE RATES IN EUROPE WHILE SALES WERE FLAT IN THE US REVENUE DROPPED 25 IN EUROPE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SCOTT PAPER CLOSED AT 3325 A SHARE UP 625 CENTS 9310200057 931020 MARKETING & MEDIA ADVERTISING CHURCH OF SCIENTOLOGY TO LAUNCH CAMPAIGN TO IMPROVE ITS IMAGE BY LAURA BIRD THE CHURCH OF SCIENTOLOGY HAVING JUST WON TAXEXEMPT STATUS AFTER A BITTER DECADESLONG BATTLE WITH THE INTERNAL REVENUE SERVICE IS NOW READY TO TAKE ON MEDIA CRITICS IN A MAJOR PROMOTIONAL CAMPAIGN TO TRY TO MEND ITS PUBLIC IMAGE EARLY THIS MONTH THE INTERNAL REVENUE SERVICE NOTIFIED 30 ENTITIES WITHIN THE CHURCH OF SCIENTOLOGY HIERARCHY THAT THEY WOULD BE RECOGNIZED AS TAXEXEMPT ORGANIZATIONS WHOSE DONATION INCOME ISN'T SUBJECT TO FEDERAL INCOME TAX CHURCH OFFICIALS HAILED THE DECISION SAYING IT WOULD ALLOW THEM TO CONCENTRATE ON EXPANSION NOW THE EXPANSION EFFORT IS ABOUT TO START WITH A NEW BOOK AND COMBATIVE ADVERTISING BLITZ PUBLICATION OF WHAT IS SCIENTOLOGY A 590PAGE PAPERBACK PRICED AT 1995 IS SET FOR THE END OF THE MONTH THE CHURCH AND ITS PUBLISHER BRIDGE PUBLICATIONS INC LOS ANGELES ARE PROMISING BOOKSELLERS A NATIONAL ADVERTISING CAMPAIGN INCLUDING TELEVISION AND PRINT ADS AND A NATIONAL PUBLICITY TOUR BY THE CHURCH'S SPOKESMEN AND CELEBRITY MEMBERS THE CHURCH OF SCIENTOLOGY WHICH CLAIMS EIGHT MILLION MEMBERS WORLDWIDE WAS FOUNDED IN 1954 BY L RON HUBBARD A SCIENCEFICTION AUTHOR IT CONSIDERS ITSELF TO BE NONDENOMINATIONAL IN THAT IT WELCOMES NEW MEMBERS FROM ALL MAINSTREAM FAITHS PURPORTING TO ALLOW THEM TO REALIZE THEIR FULL SPIRITUAL POTENTIAL BY HELPING THEM UNDERSTAND HOW THE MIND WORKS THE CHURCH IS OPPOSED TO THE USE OF MINDALTERING DRUGS AND HAS WAGED A PUBLIC CAMPAIGN AGAINST PROZAC ELI LILLY & CO'S ANTIDEPRESSANT THE CHURCH IS PROMOTING ITS NEW BOOK TO RETAILERS AS THE BOOK THAT GIVES YOU THE STORY BEHIND THE HEADLINES THE CHURCH SAYS IN ITS PROMOTIONS THAT IT HAS SURVIVED 40 YEARS OF VICIOUS MEDIA HARASSMENT AND JUST KEEPS GETTING BIGGER AND STRONGER EVERY DAY IT'S AN INTERNATIONAL PHENOMENON THAT ISN'T GOING AWAY SEVERAL MAGAZINES HAVE PUBLISHED EXPOSESTYLE ARTICLES ABOUT SCIENTOLOGY INCLUDING A RECENT STORY IN PREMIERE MAGAZINE ABOUT THE RELIGION'S POPULARITY AND POWER IN HOLLYWOOD AND A COVER STORY TWO YEARS AGO IN TIME MAGAZINE CORPORATEIMAGE EXPERTS SAY THAT TAKING SUCH A CONFRONTATIONAL APPROACH TO A TARNISHED IMAGE IS RISKY THE TONE OF THE REBUTTAL ADS MUST BE SERIOUS CONCERNED AND AN APPROPRIATE REPRESENTATION OF THE FACTS IT CAN COME ACROSS AS SOUR GRAPES SAID BILL SOUTHARD PRESIDENT OF THE NEW YORK PUBLICRELATIONS UNIT OF EARLE PALMER BROWN BUT RESPONDING TO PUBLIC ALLEGATIONS IS OFTEN IMPORTANT IN RETAINING THE CONFIDENCE OF MEMBERS HE SAID THEY'VE RECEIVED SO MUCH EDITORIAL ATTENTION AND FROM THEIR PERSPECTIVE BEEN SO MISREPRESENTED THAT THEY DON'T HAVE A HECK OF A LOT TO LOSE ALTHOUGH THE ADVERTISING ISN'T FINISHED YET THE NEW CAMPAIGN INCLUDES A HALFHOUR DOCUMERCIAL ENTITLED THE PROBLEM OF LIFE IT DRAMATIZES THE STORY OF A COUPLE WHO ARE LOOKING FOR ANSWERS TO THE QUESTIONS OF LIFE A SPOKESWOMAN SAID SUCH AS WHAT'S IT ALL ABOUT WHERE ARE WE GOING WOULDN'T IT BE GOOD TO HAVE A JOB THAT IS FULFILLING THE COUPLE UNSUCCESSFULLY VISITS A DOCTOR A PSYCHOTHERAPIST AND A MARRIAGE COUNSELOR AT THE END THEY FIND OUT SCIENTOLOGY COULD PROVIDE THE ANSWERS THE SPOKESWOMAN SAID THE DOCUMERCIAL ENDS WITH A 10MINUTE DIRECTSALES PITCH FROM JEFF POMERANTZ THE SOAPOPERA STAR BEST KNOWN FOR HIS SUPPORTING ROLE IN THE DYNASTY SERIES THE CHURCH SAYS THE CHURCH ADDED THAT IT INTENDS TO RUN THE HALFHOUR AD ON NATIONAL CABLE STATIONS TWOMINUTE COMMERCIALS WHICH THE CHURCH ALSO SAYS IT INTENDS TO RUN NATIONALLY WILL PITCH THE BOOK USING THE SAME APPROACH AS THE PROMOTIONS TO BOOKSELLERS THE SPOKESWOMAN SAID THE CHURCH HAS RESPONDED AGGRESSIVELY TO ITS PORTRAYAL BY NEWS ORGANIZATIONS IN THE PAST AFTER TIME RAN ITS COVER STORY TITLED SCIENTOLOGY THE CULT OF GREED THE CHURCH RAN EXPENSIVE INSERTS IN USA TODAY IN AN ATTEMPT TO DISCREDIT THE TIME STORY THE CHURCH FILED A LIBEL SUIT AGAINST TIME AND ALSO SUED ELI LILLY WPP GROUP'S J WALTER THOMPSON WHICH WAS PROZAC'S AD AGENCY AT THE TIME AND MARTIN SORRELL WPP CHIEF EXECUTIVE ACCUSING THE AGENCY AND MR SORRELL OF PRESSURING TIME TO PRINT THE STORY BOTH SUITS ARE PENDING THERE'S BEEN INACCURATE REPORTING ABOUT THE CHURCH IN THE PAST THE SPOKESWOMAN SAYS ANYONE WHO HAS HEARD ABOUT THE CHURCH NOW CAN TURN TO A BOOK WRITTEN BY THE CHURCH ITSELF STEPHEN A GREYSER WHO TEACHES CORPORATE COMMUNICATIONS AT HARVARD BUSINESS SCHOOL SAYS RUNNING ADS TAKING ON MEDIA CRITICS CAN BACKFIRE THERE'S NEVER BEEN A COMPANY THAT'S BEEN ATTACKED THAT DIDN'T THINK IT WAS UNFAIR OR UNTRUE HE SAYS THE ORGANIZATION WITH THE LAST WORD IS THE ORGANIZATION WITH THE INK AT ITS DISPOSAL TONY DEGREGORIO EXECUTIVE VICE PRESIDENT AND CHIEF CREATIVE OFFICER AT THE NEW YORK OFFICE OF INTERPUBLIC GROUP'S LINTAS RESIGNED EFFECTIVE NOV 1 SAID LINTAS'S NEW YORK CHAIRMAN AND CHIEF EXECUTIVE TONY MILLER MR DEGREGORIO'S DEPARTURE COMES AS LINTAS WHICH LOST THE BIG DIET COKE ACCOUNT EARLIER THIS MONTH ALSO IS IN THE MIDST OF DEFENDING TWO OTHER IMPORTANT ACCOUNTS MOLSON BEER AND INTERNATIONAL BUSINESS MACHINES CORP'S PERSONAL COMPUTERS THE AGENCY HAS NO PLANS TO REPLACE HIM MR MILLER SAID AN ADVERTISING DISPUTE BETWEEN AMERICAN EXPRESS AND VISA USA INC NOW HAS MOVED INTO FEDERAL COURT AMERICAN EXPRESS FILED SUIT IN NEW YORK CHARGING VISA WITH FALSE ADVERTISING AND UNFAIR COMPETITION IN TELEVISION AND PRINT ADS FEATURING THE SKI RESORT TOWN OF TELLURIDE COLO AMERICAN EXPRESS IS SEEKING A TEMPORARY INJUNCTION AGAINST THE AD AND UNDISCLOSED DAMAGES AS FOR THE AD WHICH FIRST AIRED NATIONALLY ON OCT 11 AMERICAN EXPRESS SAID THAT THE AD CONVEYS THE FALSE CLAIM THAT ONE CANNOT USE THE AMERICAN EXPRESS CARD ANYWHERE IN THE TOWN WHEN IN FACT SOME STORES INCLUDED IN THE VISUALS DO ACCEPT THE CARD IT ALSO SAID THAT TELLURIDE SKI RESORT THE SKI OPERATOR FEATURED IN THE AD DISCONTINUED ACCEPTING AMERICAN EXPRESS CARDS IN EXCHANGE FOR FREE PROMOTIONAL SUPPORT FROM VISA VISA SAID THE AD CLEARLY STATES THAT TELLURIDE SKI RESORT AND NOT THE TOWN DOESN'T TAKE AMERICAN EXPRESS A HEARING IS SCHEDULED TOMORROW 9310200056 931020 WHO'S NEWS BANC ONE CORP BANC ONE CORP COLUMBUS OHIO ALEX SHUMATE 43 YEARS OLD A PARTNER IN THE CLEVELANDBASED LAW FIRM SQUIRE SANDERS & DEMPSEY WAS NAMED A DIRECTOR OF THIS BANKHOLDING COMPANY HIS APPOINTMENT BOOSTS THE SIZE OF THE BOARD TO 14 MEMBERS FROM 13 9310200055 931020 MEDICAL CONCERN MAKES PURCHASE BOSTON AMERICAN MEDICAL RESPONSE INC SAID IT COMPLETED THE ACQUISITION OF LIFE MEDICAL INDUSTRIES INC TERMS WERE NOT DISCLOSED LIFE MEDICAL INDUSTRIES STOCKTON CALIF HAD REVENUE OF ABOUT 45 MILLION IN 1992 9310200054 931020 BUSINESS BRIEF DANAHER CORP THIRDQUARTER NET ROSE 49 ON 14 INCREASE IN REVENUE DANAHER CORP WASHINGTON DC POSTED A 49 INCREASE IN THIRDQUARTER NET INCOME DRIVEN BY STRONG SALES OF COMPONENTS TO AUTOMOBILE AND TRUCK MAKERS DANAHER WHICH MAKES CRAFTSMAN BRAND HAND TOOLS ENVIRONMENTAL CONTROL PRODUCTS AND TRANSPORTATION PRODUCTS SAID NET ROSE TO 145 MILLION OR 50 CENTS A SHARE FROM 97 MILLION OR 34 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE FOR THE THIRD QUARTER ROSE 14 TO 281 MILLION FROM 2461 MILLION FOR THE NINE MONTHS EARNINGS FELL SHARPLY DUE TO A 36 MILLION CHARGE FOR THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE NET WAS 13 MILLION OR FOUR CENTS A SHARE COMPARED WITH THE YEAREARLIER 229 MILLION OR 80 CENTS A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING DANAHER SHARES ROSE 1 TO 34875 9310200053 931020 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN GET STARTED NOW ON 1993 TAXES TO AVOID GETTING HIT BY A STIFF PENALTY MANY PEOPLE MAY OWE MORE THAN THEY REALIZE TO AVOID AN ESTIMATEDTAX PENALTY THEY SHOULD CONSIDER INCREASING WITHHOLDING OR ESTIMATEDTAX PAYMENTS NOW ACCOUNTANTS SAY MANY TWOINCOME COUPLES WHO MARRIED IN 1993 MAY BE ESPECIALLY SURPRISED BY HOW MUCH MORE THEY OWE SAYS ROBERT GARNER OF ERNST & YOUNG HE SAYS TWO PEOPLE WHO EACH EARNED 100000 MIGHT OWE ABOUT 4800 MORE IN FEDERAL TAXES AS A MARRIED COUPLE MERELY BECAUSE OF THE MARRIAGE TAX PENALTY OTHERS WHO MAY OWE MORE HOMEOWNERS WHOSE DEDUCTIBLE MORTGAGEINTEREST PAYMENTS FELL BECAUSE THEY REFINANCED OR BECAUSE THEY HAVE A FLOATINGRATE MORTGAGE ALSO PEOPLE WHO RECEIVE SPECIAL BONUSES OR EXECUTOR FEES MAY OWE MORE BUT HIGHINCOME PEOPLE WITH TAX INCREASES CAUSED BY THE NEW LAW'S RETROACTIVE RATE INCREASE CAN SPREAD OUT PAYMENT OF THAT ADDED TAX IN THREE EQUAL INSTALLMENTS THROUGH 1996 WITH NO INTEREST OR PENALTY SOME PEOPLE MAY EVEN OWE SLIGHTLY LESS THIS YEAR BECAUSE OF INFLATION ADJUSTMENTS IN TAX BRACKETS ACCORDING TO COOPERS & LYBRAND DISASTER PLANNING AT THE IRS COULD USE SOME IMPROVEMENT THE GAO WARNS THE IRS HASN'T DONE ENOUGH TO PREPARE FOR POSSIBLE COMPUTER DISASTERS SAYS THE GENERAL ACCOUNTING OFFICE CONGRESS'S WATCHDOG ARM IF CALAMITY STRIKES AT THE IRS'S MARTINSBURG WVA CENTER THE SERVICE'S ABILITY TO KEEP TAXPAYER ACCOUNTS CURRENT MAY BE IMPEDED A GAO REPORT SAYS COMPUTERS AT THE IRS'S DETROIT BACKUP SITE COULDN'T COPE WITH ALL THE ADDED WORK IRS OFFICIALS CONCEDE THEY COULDN'T HANDLE ALL THEIR COMPUTING TASKS IN CASE OF A DISASTER BUT THEY SAY THEY COULD STILL DO THE MOST IMPORTANT JOBS SUCH AS PROCESSING RETURNS PAYMENTS AND REFUNDS THE IRS ALSO PLANS TO INCREASE ITS BACKUP COMPUTER CAPACITY IN AN EFFORT TO MINIMIZE THE IMPACT OF A MAJOR COMPUTER MISHAP OFFICIALS SAY THEY RECENTLY COMPLETED A SUCCESSFUL TEST OF THEIR UPDATED DISASTERRECOVERY PROGRAM CHANGE YOUR WAYS IRS TO CATCH MORE BUSINESS CHEATS DON'T RELY SOLELY ON AUDITS THE GAO ADVISES IT URGES THE IRS TO USE ITS COMPUTERS TO COMPARE DATA ON INFORMATION RETURNS SUCH AS W2 WAGE FORMS WITH BUSINESSES' TAX RETURNS TAX EXPERTS SAY THIS REVERSEMATCHING METHOD SHOULD HELP DETECT LARGER AMOUNTS OF OVERSTATED BUSINESS DEDUCTIONS AUDITS ARE COSTLY AND COVER ONLY A VERY SMALL PORTION OF BUSINESSES THE GAO REPORT NOTES THE IRS AUDITED ONLY ABOUT 2 OF THE 91 MILLION TAX RETURNS THAT SMALL COMPANIES AND SOLE PROPRIETORS FILED IN FISCAL 1991 SMALL BUSINESS TAX NONCOMPLIANCE IS A SERIOUS PROBLEM THE REPORT SAYS THE IRS ESTIMATES SMALL COMPANIES IN 1987 AND SOLE PROPRIETORS IN 1988 OVERSTATED DEDUCTIONS BY 40 BILLION THE IRS SAYS IT IS CONSIDERING THE GAO'S SUGGESTIONS THE IRS ALSO AGREED TO TEST COMPUTERMATCHING FOR WAGES AS PART OF A BROADER EXPERIMENT DESIGNED TO SNARE BUSINESS WRONGDOERS NEW YORK COMPUTER USERS GET A BREAK THE STATE NOW SAYS ITS ADDITIONAL 5 TAX ON TELEPHONE CALLS TO INFORMATION AND ENTERTAINMENT SERVICES APPLIES ONLY TO THOSE THAT CUSTOMERS HEAR OVER THE PHONE THUS THE TAX EFFECTIVE LAST MONTH GENERALLY DOESN'T APPLY TO COMPUTER SERVICES SUCH AS BULLETIN BOARDS OR DATABASES TAXOPHOBIA ABOUT 42 MILLION INDIVIDUALS REPORTED TAXFREE INTEREST IN 1991 UP 6 FROM 1990 THE PUBLIC SECURITIES ASSOCIATION SAYS THEY RECEIVED A TOTAL OF 444 BILLION UP 10 THE NEW YORKBASED TRADE GROUP SAYS THIS INCLUDES INCOME FROM TAXFREE BOND AND MONEY FUNDS AND DIRECT BOND HOLDINGS USER CHARGES SOAR AND MANY EXPERTS ANTICIPATE CONTINUED RAPID GROWTH THE CONGRESSIONAL BUDGET OFFICE SAYS FEDERAL CHARGES SUCH AS PASSPORT FEES NATIONALPARK ENTRANCE FEES AND GASOLINE EXCISE TAXES TOTALED 120 BILLION IN 1991 BETWEEN 1980 AND 1991 TOTAL CHARGES JUMPED 54 IN CONSTANT DOLLARS THE CBO REPORT SAYS MANY CORPORATE BATTLES WITH THE IRS OVER INTANGIBLES MAY BE SETTLED SOON DAVID JORDAN ACTING CHIEF COUNSEL SAYS THE IRS IS VERY CLOSE TO PROPOSING OFFERS TO SETTLE AT LEAST SEVERAL HUNDRED CASES THEY INVOLVE IRS CHALLENGES TO CORPORATE DEDUCTIONS RELATED TO ACQUIRED INTANGIBLE ASSETS SUCH AS CUSTOMER LISTS LAWMAKERS URGED THE IRS TO SETTLE THESE CASES IN LINE WITH THE NEW TAX LAW ALLOWING COSTS OF CERTAIN ACQUIRED INTANGIBLES TO BE DEDUCTED OVER 15 YEARS AT STAKE BILLIONS OF DOLLARS IN IRS CLAIMS FOR TAXES THE IRS IS CONSIDERING SEVERAL APPROACHES JORDAN TOLD A RECENT CONFERENCE SPONSORED BY PRENTICE HALL AND FORDHAM LAW SCHOOL ONE WOULD LET A COMPANY AMORTIZE PART OF THE VALUE OF ITS INTANGIBLES OVER 15 YEARS ANOTHER WOULD APPLY THE NEW LAW RETROACTIVELY TO ALL THE OLD CASES JORDAN SAYS OTHER APPROACHES ARE BEING CONSIDERED AND WE SHOULD HAVE AN ANSWER IN THE VERY NEAR FUTURE BRIEFS DEATH AND TAXES THE IRS ISSUES A 150PAGE PUBLICATION ON ITS AUDIT PROCEDURES FOR MORTUARIES THE TOP 5 OF INCOME EARNERS PAID 434 OF ALL FEDERAL INDIVIDUAL INCOME TAXES IN 1991 AND THE TOP 1 PAID 245 SAYS ECONOMIST CHRIS EDWARDS OF THE TAX FOUNDATION IN WASHINGTON SAY WHAT NEW YORK TAX COMMISSIONER JAMES WETZLER REFERS TO NEGATIVE TAX EXPENDITURES TRANSLATION ELIMINATION OF DEDUCTIONS SUCH AS CLUB DUES RESULTING IN MORE REVENUE 9310200052 931020 BUSINESS BRIEF LONRHO PLC BOARDROOM STRUGGLE SWINGS IN FAVOR OF FINANCIER BOCK A BOARDROOM STRUGGLE AT LONRHO PLC LONDON HAS SWUNG IN FAVOR OF ITS JOINTCHIEF EXECUTIVE DIETER BOCK AT A KEY BOARD MEETING YESTERDAY THE BOARD OF DIRECTORS OF THE INDUSTRIAL CONGLOMERATE UNANIMOUSLY AGREED TO FOUR NEW APPOINTMENTS TO ITS MAIN BOARD INCLUDING TWO NONEXECUTIVE DIRECTORS A MOVE THAT HAS BEEN STRONGLY BACKED BY MR BOCK THE NONEXECUTIVE DIRECTORSHIPS ARE THE FIRST AT LONRHO IN 20 YEARS TINY ROWLAND WHO IS JOINT CEO HAS BEEN LONRHO'S LARGEST SHAREHOLDER HE VIRTUALLY RAN THE GROUP SINGLEHANDEDLY FOR MANY YEARS AND HAS RESISTED THE APPOINTMENT OF NONEXECUTIVE DIRECTORS BUT FOLLOWERS OF THE TRADING GROUP SAY THE APPOINTMENT OF PETER HARPER A DIRECTOR OF HANSON PLC AND STEPHEN WALLS CHAIRMAN OF THE FOOD GROUP ALBERT FISHER GROUP PLC AS INDEPENDANT NONEXECUTIVE DIRECTORS IS TESTIMONY THAT MR BOCK A GERMAN FINANCIER IS WINNING HIS BATTLE TO GAIN OPERATING CONTROL OF THE GROUP 9310200050 931020 SUNGARD TO BUY MINNESOTA FIRM WAYNE PA SUNGARD DATA SYSTEMS INC'S SUNGARD FINANCIAL SYSTEMS INC UNIT SAID IT HAS REACHED AN AGREEMENT IN PRINCIPLE TO ACQUIRE DIGITAL SOLUTIONS INC OF MINNEAPOLIS TERMS WEREN'T DISCLOSED SUNGARD DATA SAID THE ACQUISITION ISN'T EXPECTED TO HAVE A MATERIAL EFFECT ON ITS 1993 OR 1994 RESULTS DIGITAL SOLUTIONS A PRIVATELY HELD COMPANY THAT WRITES FINANCIAL SOFTWARE ISN'T RELATED TO THE PUBLICLY TRADED NEW JERSEY COMPANY OF THE SAME NAME 9310200049 931020 BUSINESS BRIEFS GRAND UNION HOLDINGS CORP'S GROCERY CHAIN UNIT GRAND UNION CO ACQUIRED FIVE FORMER SHOPRITE SUPERMARKETS ON LONG ISLAND NY FROM FOODARAMA SUPERMARKETS INC FOR 16 MILLION PLUS AN ADDITIONAL 3 MILLION FOR THE VALUE OF INVENTORY ROY F WESTON INC SAID THE DEPARTMENT OF ENERGY AWARDED THE COMPANY A FIVEYEAR 10 MILLION CONTRACT TO PROVIDE ENVIRONMENTAL SAFETY AND HEALTH ASSISTANCE TO THE OFFICE OF ENERGY RESEARCH THE CONTRACT INCLUDES A TWOYEAR BASE AND THREE ONEYEAR OPTIONS MICHAEL BAKER CORP'S MELLON STUART CONSTRUCTION UNIT WAS AWARDED A 21 MILLION CONTRACT TO BUILD AN OFFICE BUILDING IN PHILADELPHIA FOR BOEING DEFENSE & SPACE GROUP'S HELICOPTERS DIVISION BOEING DEFENSE & SPACE IS A UNIT OF BOEING CO DOSKOCIL COS ENTERED INTO A JOINT VENTURE WITH IBP INC DAKOTA CITY NEB UNDER WHICH IBP WILL MAKE HAM PRODUCTS THAT DOSKOCIL WILL MARKET AND DISTRIBUTE TERMS WEREN'T DISCLOSED HARSCO CORP SIGNED A 10YEAR CONTRACT VALUED AT 8 MILLION TO PROVIDE SPECIALIZED STEEL MILL SERVICES FOR A MINIMILL LOCATED IN MEXICALI MEXICO OWNED BY CIA SIDERURGICA DE CALIFORNIA SA DE CV OUTLOOK GRAPHICS CORP ACQUIRED CERTAIN ASSETS OF SUNRISE PACKAGING INC AN OAK CREEK WIS FLEXOGRAPHIC PRINTING AND LAMINATING COMPANY FOR 7 MILLION 9310200048 931020 PAKISTAN'S IMPERFECT DEMOCRACY BY CAIT MURPHY LAHORE PAKISTAN GOVERNING PAKISTAN IS A THANKLESS JOB BUT SOMEBODY'S GOT TO DO IT AND BENAZIR BHUTTO IS LOOKING FORWARD TO BEING THE ONE IN AN INTERVIEW THIS MONTH WITH THE ASIAN WALL STREET JOURNAL AFTER ONE OF HER TYPICALLY RIOTOUS CAMPAIGN RALLIES SHE WAS BREEZY AND CONFIDENT THAT SHE COULD LICK UNEMPLOYMENT RESTORE GOOD RELATIONS WITH THE US AND MAKE PAKISTAN A MODEL ISLAMIC DEMOCRACY WHAT DID SHE LEARN FROM HER FIRST LACKLUSTER TERM THAT RAN FROM 1988 TO 1990 HOW GOVERNMENT WORKS SHE ANSWERS PROMPTLY HAVING HAD A STINT IN GOVERNMENT ALREADY I AM SURE WE CAN GET MORE COHESIVE AND BETTER GOVERNMENT IN THE FUTURE WELL MAYBE NOW THAT THE NEWLY ELECTED NATIONAL ASSEMBLY HAS CHOSEN MS BHUTTO AS PRIME MINISTER AND BEGUN BUSINESS THERE IS INDEED REASON FOR OPTIMISM THAT PAKISTAN IS EDGING NEAR THE MARK IN ITS 46YEAR SEARCH FOR A DECENT DEMOCRATIC GOVERNMENT FOR A START BOTH THE ARMY AND THE PRESIDENCY TWO OF PAKISTAN'S STRONGEST INSTITUTIONS HAVE BEEN NEUTERED LEAVING PAKISTAN TO BE RUN FOR A CHANGE BY ITS PARLIAMENT THE METAMORPHOSIS BEGAN IN APRIL WHEN THENPRESIDENT GHULAM ISHAQ KHAN UNDER THE AUTHORITY OF THE EIGHTH AMENDMENT TO THE CONSTITUTION TOSSED PRIME MINISTER NAWAZ SHARIF OUT OF OFFICE MR SHARIF APPEALED TO THE SUPREME COURT AND WON REINSTATEMENT BUT THAT DIDN'T END MATTERS AND AFTER MORE BICKERING BOTH MR SHARIF AND MR KHAN RESIGNED IN JULY PAVING THE WAY FOR THE OCT 6 ELECTIONS IN WHICH MS BHUTTO'S PAKISTAN PEOPLE'S PARTY TOOK A PLURALITY THE LASTING EFFECT OF THE SUPREME COURT'S REVERSAL OF THE PRESIDENT'S ATTEMPT TO FIRE MR SHARIF IS AN EROSION OF THE POWER OF THE PRESIDENCY THE EIGHTH AMENDMENT IS PROBABLY DOOMED MS BHUTTO HERSELF WAS FIRED IN 1990 UNDER ITS TERMS ALSO BY MR KHAN AND HAS VOWED TO SEE IT GO AS FOR THE ARMY WHICH HAS BEEN IN OR NEAR POWER FOR ALL OF PAKISTAN'S HISTORY IT SEEMS SINCERE IN ITS DESIRE TO STAY OUT OF THE PARLIAMENTARY SNAKEPIT THE GENERALS DON'T WANT TO LOSE THE AFFECTIONS OF THE US THE BEST FRIEND THEY'VE EVER HAD AND THEY KNOW THAT A FOURTH ROUND OF MARTIAL LAW WOULD DO JUST THAT THE MILITARY EVEN TOOK ON THE RESPONSIBILITY OF CONDUCTING THE ELECTION THE IDEA OF THE ARMED FORCES PLAYING HONEST BROKER WOULD HAVE RAISED HOOTS JUST A FEW MONTHS AGO BUT THERE IS GENERAL AGREEMENT THAT THESE WERE THE CLEANEST ELECTIONS IN PAKISTAN'S HISTORY IT'S A VERY DIFFERENT MILITARY NOW SAYS MS BHUTTO THAN THE ONE THAT UNDERMINED HER RULE SO THIS IS THE BESTCASE SCENARIO THAT MS BHUTTO'S NEW FAIRLY ELECTED GOVERNMENT WILL BE ALLOWED TO RULE WITHOUT FEAR OF COUP OR DISSOLUTION BUT MANY PAKISTANIS ARE QUESTIONING WHETHER THIS WILL IN FACT BE A GOOD GOVERNMENT TO START MS BHUTTO'S PARTY DID NOT WIN A SIMPLE MAJORITY IT TOOK WEEKS FOR HER TO STITCH TOGETHER A COALITION THE LIKELY OUTLOOK IS FOR A TERM OF WEAK POLICY AND CONSTANT COMPROMISE MOREOVER MR SHARIF'S PAKISTAN MUSLIM LEAGUE IS MAKING LITTLE PRETENSE OF COOPERATION MS BHUTTO'S FIRST TERM WAS CONSUMED BY PARTISAN WRANGLING AND THERE COULD VERY WELL BE A REPEAT OF THIS SORRY SPECTACLE THE LARGER PROBLEM IS PAKISTAN'S TWISTED PUBLIC CULTURE WHICH SEES POLITICS AS A WAY TO MAKE MONEY AND GOVERNMENT AS AN INSTITUTION TO REWARD FRIENDS AND PUNISH ENEMIES PAYING TAXES AND REPAYING BANK LOANS ARE CONSIDERED VOLUNTARY AND SO NO ONE DOES MR SHARIF PAID JUST 2680 RUPEES 8933 ON A REPORTED ANNUAL INCOME OF 6621 RUPEES 220 OR ABOUT HALF OF PAKISTAN'S AVERAGE PERCAPITA INCOME NO ONE BELIEVES THIS FIGURE REFLECTS THE TRUE WEALTH OF MR SHARIF WHO IS A LEADING MEMBER OF ONE OF PAKISTAN'S RICHEST INDUSTRIAL FAMILIES THE WHOLE STRUCTURE IS CORRUPT SAYS A DISGUSTED LOCAL JOURNALIST IN PAKISTAN EVERYTHING IS RIGGED DURING MR SHARIF'S 30 MONTHS IN POWER THESE TENDENCIES DEEPENED AND CYNICS NICKNAMED HIS GOVERNMENT PLUNDERLAND MS BHUTTO'S WAS KNOWN AS BLUNDERLAND ALTHOUGH MR SHARIF WON HIGH MARKS EARLY ON FOR STRIPPING SOME OF THE UNDERGROWTH FROM PAKISTAN'S SWAMP OF AN ECONOMY THE FOREIGN INVESTMENT HIS REFORMS INITIALLY ATTRACTED HAS SINCE SLIPPED BACK IN 1992 GROWTH SLUMPED WHILE GOVERNMENT SPENDING BALLOONED AS MR SHARIF POURED ON THE SUBSIDIES AND BEGAN HANDING OUT PERKS MS BHUTTO'S PERSONAL HONESTY IS UNQUESTIONED ALTHOUGH HER HUSBAND EARNED THE HONORIFIC MR 10 BUT HER IDEAS ARE FUZZY IN 1988 SHE PROCLAIMED SOCIALISM IS OUR ECONOMY IN 1990 THE CRY WAS FOR A RETURN TO SOCIALISM A SAVVY WOMAN SHE SHE DOESN'T USE THE S WORD ANYMORE BUT SHE'S BIG ON PUBLICPRIVATE OWNERSHIP AND CENTRAL PLANNING FOR THE ECONOMY THE LAST THING PAKISTAN'S ECONOMY NEEDS IS TO BE PUMPED PRIMED AND FINETUNED BY ITS GREEDADDLED BUREAUCRACY BUT THAT'S PROBABLY WHAT IS IN STORE INDEED IN A RECENT INTERVIEW WITH THE FAR EASTERN ECONOMIC REVIEW MS BHUTTO CALLED FOR AN EXPANSIVE GOVERNMENT ROLE IN ECONOMIC PLANNING HER ECONOMIC MANIFESTO IS FULL OF VAGUE AND WORTHY OBJECTIVES WHILE HER CAMPAIGN PROMISES TENDED TOWARD THE EXTRAVAGANT IN PESHAWAR FOR EXAMPLE SHE PROMISED YOUTH TRAINING MODERN TECHNOLOGY TWO UNIVERSITIES A 500BED HOSPITAL AND A HIGHWAY TO KARACHI IN KARACHI SHE SAID SHE WOULD WIPE OUT INFLATION AND UNEMPLOYMENT IN FOUR YEARS MUCH OF THIS MUST BE DISMISSED AS A FISCAL FANTASY CONSIDERING PAKISTAN'S LEVEL OF DEBT DEMOCRACY WON'T WORK FOR PAKISTAN IF IT FAILS TO GO AFTER THE MISUSE OF OFFICE SO COMMON THAT IT IS SHRUGGED OFF AS NORMAL ROLLING A FEW PROMINENT HEADS OF ALL THE MAJOR PARTIES NOT JUST THE OTHER GUYS WOULD BE A START SECOND THE PAKISTAN MUSLIM LEAGUE MUST PLAY A ROLE MORE CONSTRUCTIVE THAN THAT OF ATTACK DOG WITHOUT THE REALITY OF A LOYAL OPPOSITION PARLIAMENTARY DEMOCRACY IS JUST A MORE DRAMATIC VERSION OF THE OXFORD UNION DEBATING SOCIETY THAT MS BHUTTO ONCE LED AN EARLY TEST WILL BE THE DEBATE ON THE EIGHTH AMENDMENT FOR ALL THE BUMPS AND GRINDS THOUGH PAKISTAN IS STUMBLING FORWARD IN HER FIRST TERM MS BHUTTO BROUGHT BACK A CONCEPT OF CIVIL LIBERTIES THAT HAD BEEN LOST DURING GEN ZIA ULHAQ'S 197788 DICTATORSHIP IN HIS TERM MR SHARIF POINTED UP THE ADVANTAGES OF A MORE LIBERAL ECONOMIC ORDER SOMEDAY SOMEONE IS GOING TO PUT THESE TOGETHER AND PAKISTAN WILL FINALLY HAVE A GOVERNMENT WORTHY OF DELIVERING THE PROMISE OF ISLAMIC DEMOCRACY ON WHICH IT WAS FOUNDED MS MURPHY IS EDITORIAL PAGE EDITOR OF THE ASIAN WALL STREET JOURNAL 9310200047 931020 BUSINESS BRIEF ZEOS INTERNATIONAL LTD COMPUTER MAKER'S NET LOSS NARROWED IN THIRD QUARTER ZEOS INTERNATIONAL LTD SAID ITS THIRDQUARTER NET LOSS NARROWED TO 23 MILLION OR 27 CENTS A SHARE CITING CUTS IN OVERHEAD COSTS AND IMPROVEMENTS IN MANUFACTURING EFFICIENCY IN THE 1992 THIRD QUARTER ZEOS HAD A NET LOSS OF 81 MILLION OR 94 CENTS A SHARE THE MINNEAPOLIS PERSONALCOMPUTER MAKER BATTERED IN RECENT QUARTERS BY A RELENTLESS INDUSTRY PRICE WAR SAID STRONGER SALES TO THE GOVERNMENT SECTOR BOOSTED SALES FOR THE QUARTER 89 TO 56 MILLION FROM 514 MILLION A YEAR EARLIER GREG HERRICK CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY REDUCED OVERHEAD COSTS BY 24 COMPARED WITH A YEAR EARLIER 9310200046 931020 BUSINESS BRIEF RASTEROPS CORP NET LOSS FOR FISCAL 1ST PERIOD IS EXPANDED TO 109 MILLION RASTEROPS CORP REPORTED A WIDENED LOSS FOR ITS FISCAL FIRST QUARTER ENDED SEPT 30 OF 109 MILLION OR 116 A SHARE THE SANTA CLARA CALIF COMPANY'S YEAREARLIER NET LOSS WAS 43 MILLION OR 54 CENTS A SHARE RASTEROPS WHICH MAKES CIRCUIT BOARDS USED TO DISPLAY ADVANCED COMPUTER GRAPHICS AND VIDEO PREVIOUSLY ANNOUNCED IT WOULD POST A SIGNIFICANT OPERATING LOSS AND TAKE A RESTRUCTURING CHARGE WHICH CAME TO 65 MILLION REVENUE FOR THE QUARTER FELL 17 TO 21 MILLION FROM A YEAREARLIER 254 MILLION THE COMPANY BLAMED THE DECLINE ON PRODUCTION DELAYS A CHANGE IN SALES PROCEDURES AND SOFTNESS IN EUROPEAN MARKETS PAUL J SMITH RASTEROPS'S CHIEF EXECUTIVE CALLED THE RESULTS DISAPPOINTING BUT SAID THE COMPANY'S BALANCE SHEET RAMAINS STRONG WITH 113 MILLION IN CASH THE RESULTS WERE POSTED AFTER MARKETS CLOSED 9310200045 931020 BUSINESS BRIEF GENERAL MOTORS CORP ABOUT HALF OF TRUCK OWNERS TO USE COUPONS STUDY SAYS ALMOST HALF THE ESTIMATED SIX MILLION GENERAL MOTORS CORP PICKUP OWNERS ELIGIBLE FOR 1000 COUPONS WOULD USE THE COUPONS IF A FEDERAL COURT APPROVES A PROPOSED SETTLEMENT ATTORNEYS FOR THE TRUCK OWNERS SAID THE PROPOSED SETTLEMENT COULD BE VALUED AT MORE THAN 2 BILLION SAID ELIZABETH CABRASER AN ATTORNEY FOR THE OWNERS SHE SAID THAT 11 OF 250 TRUCK OWNERS SURVEYED INDICATED THEY WOULD SELL THEIR COUPONS THE VALUE OF THE COUPONS ARE CUT IN HALF TO 500 ONCE THEY'VE BEEN TRANSFERRED IN THE SURVEY 34 TO 38 OF THE OWNERS SAID THEY WOULD USE THE COUPONS TO BUY A NEW GM TRUCK CRITICS OF THE DEAL HAVE SAID THAT HARDLY ANYBODY WOULD USE THE COUPON BECAUSE IT'S A CUMBERSOME PROCEDURE AND BECAUSE THEY CAN ONLY BE USED IN THE RELATIVELY MAJOR PURCHASE OF A NEW TRUCK FEDERAL REGULATORS SAY THE TRUCKS ARE PRONE TO FIERY EXPLOSIONS WHEN HIT FROM THE SIDE GM SAYS THE TRUCKS ARE SAFE 9310200044 931020 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION DATA SYSTEMS & SOFTWARE INC AN OFFERING OF 15 MILLION COMMON SHARES VIA OSCAR GRUSS & SON INC INNOVATIVE GAMING CORP OF AMERICA AN OFFERING OF 250000 SHARES SHOE CARNIVAL INC AN OFFERING OF 2620000 COMMON SHARES VIA MCDONALD & CO SECURITIES AND ROBINSONHUMPHREY CO WATSON PHARMACEUTICALS INC AN OFFERING OF TWO MILLION COMMON SHARES VIA BEAR STEARNS & CO 9310200042 931020 CENTRAL BANCSHARES OF THE SOUTH BIRMINGHAM ALA CENTRAL BANCSHARES OF THE SOUTH INC SAID IT HAS RENAMED ITSELF COMPASS BANCSHARES INC EFFECTIVE NOV 8 9310200040 931020 WHO'S NEWS CMS ENERGY CORP CMS ENERGY CORP DEARBORN MICH GORDON L WRIGHT 51 YEARS OLD VICE PRESIDENT OF OPERATIONS WAS NAMED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS UTILITY COMPANY'S NOMECO OIL & GAS CO UNIT WILLIAM H STEPHENS III 44 VICE PRESIDENT LAND AND LEGAL WAS NAMED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT AND GENERAL COUNSEL AT THE UNIT 9310200039 931020 WHO'S NEWS OLD KENT FINANCIAL CORP OLD KENT FINANCIAL CORP GRAND RAPIDS MICH MICHAEL J JANDERNOA CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PERRIGO CO WAS NAMED A DIRECTOR OF THIS BANK HOLDING COMPANY INCREASING THE BOARD TO 14 9310200038 931020 MANAGING YOUR CAREER BY JULIE AMPARANO LOPEZ YOU FEEL STALLED IN YOUR CAREER YOUR MENTOR IS TOO BUSY TO OFFER A SYMPATHETIC EAR YOUR PERSONNEL PEOPLE ARE DOLING OUT PINK SLIPS AND YOUR COMPANY HAS SLASHED ITS CAREERDEVELOPMENT PROGRAMS WHERE DO YOU GO FOR HELP DON'T DESPAIR A GOOD CAREER STRATEGIST MAY HELP YOU RETURN TO THE FAST TRACK THANKS TO TODAY'S RAMPANT JOB INSECURITY THE NUMBER OF CAREER COACHES IS MULTIPLYING BUT IT CAN BE TRICKY TO FIND THE RIGHT COACH AND TO MAKE SURE YOU RECEIVE THE SERVICES PROMISED JOB EXPERTS WARN PETER D KUNOTH A VICE PRESIDENT AT AVERY DENNISON A MAJOR OFFICEPRODUCTS MAKER IN PASADENA CALIF SAYS HE HIRED A COACH TO OVERCOME A CAREER ROADBLOCK THIS YEAR HE SAYS AVERY DENNISON WAS CONSOLIDATING OPERATIONS AND CUTTING MANAGERS SQUELCHING HIS CHANCES OF WINNING A COVETED POSITION AS HEAD OF A DIVISION I COULD NO LONGER SIT BACK AND WAIT FOR THE COMPANY TO MOVE ME INTO THE NEXT ROLE EXPLAINS MR KUNOTH WHO ESTIMATES THAT HE HAS SPENT SEVERAL THOUSAND DOLLARS SO FAR FOR THE COACHING I TOOK MY CAREER INTO MY OWN HANDS HE ADDS AFTER ASSESSING HIS SKILLS AND ADVANCEMENT CHANCES THE COACH ADVISED MR KUNOTH TO LOOK OUTSIDE AVERY DENNISON NOW MR KUNOTH SAYS HE IS UNDER CONSIDERATION FOR DIVISIONPRESIDENCY POSITIONS AT THREE OTHER COMPANIES CAREER GUIDANCE IS BECOMING A HOT FIELD BECAUSE MR KUNOTH AND SO MANY OTHER PEOPLE FEEL TRAPPED IN THEIR JOBS THESE DAYS LAST YEAR BEAMPINES IN NEW YORK BEGAN FOCUSING ON COACHING INSTEAD OF OUTPLACEMENT SERVICE AND SAYS ITS CASELOAD HAS SINCE CLIMBED TO 90 FROM 44 IN 1991 A NEW YORK CAREERADVISORY CONCERN CALLED FIVE O'CLOCK CLUB HAD JUST TWO OFFICES AND MAINLY CATERED TO UNEMPLOYED PROFESSIONALS AND MANAGERS THIS YEAR FIVE O'CLOCK CLUB EXPECTS TO GROW TO 100 AFFILIATED OFFICES NATIONWIDE IT NOW MAINLY SERVES EMPLOYED INDIVIDUALS OFFICIALS SAY BUT YOU SHOULD WATCH OUT FOR SHODDY OPERATORS THE NATIONAL BOARD FOR CERTIFIED COUNSELORS IN GREENSBORO NC DOES CERTIFY ABOUT 1000 CAREER COUNSELORS BASED ON THEIR EDUCATION AND EXPERIENCE MOST STATES DON'T LICENSE CAREER COACHES HOWEVER AND WHILE OTHER PROFESSIONAL GROUPS KEEP LISTS OF CAREER COACHES THEY DO LITTLE TO CHECK OUT THEIR QUALIFICATIONS AS A RESULT SOME PEOPLE GET BUM ADVICE OR GET RIPPED OFF LINDA HOPKINS SAYS SHE GOT BOTH THE 32YEAROLD MIAMI INSURANCE MANAGER PAID A CAREER COUNSELOR 3000 IN ADVANCE FOR 12 MONTHS OF COUNSELING LAST YEAR SHE WAS LED THROUGH AN ARRAY OF NEW AGE MEDITATION RITUALS IN ONE INSTANCE SHE RECALLS SHE WAS TOLD TO SIT ON THE FLOOR WITH HER LEGS CROSSED AND EYES CLOSED IN BETWEEN DEEP BREATHS SHE HAD TO CHANT MONEY MONEY MONEY MONEY IT WAS INSANE SAYS MS HOPKINS AFTER THREE SESSIONS SHE QUIT AND DEMANDED A REFUND BUT THE CAREER COUNSELOR HAD DISAPPEARED LEAVING HER IN THE LURCH I SHOULD HAVE DONE MORE HOMEWORK ON THE TOPIC MS HOPKINS SAYS RUEFULLY IN PICKING A CAREER ADVISER YOU SHOULD AVOID ANYONE WHO CHARGES A HEAVY FEE UPFRONT EMPLOYMENT SPECIALISTS RECOMMEND AND WHEN YOU CHECK OUT A COACH'S CREDENTIALS LOOK FOR SPECIFIC RELEVANT EXPERTISE AN EFFECTIVE CAREER COACH SHOULD HAVE AT LEAST FIVE YEARS OF COUNSELING EXPERIENCE YOU WANT SOMEONE WHO CAN PROPERLY WEIGH YOUR STRENGTHS AND WEAKNESSES MORE IMPORTANT A COACH SHOULD HAVE AN EXTENSIVE BUSINESS BACKGROUND HOW CAN A PERSON GIVE YOU ADVICE ABOUT MANEUVERING ABOUT A CORPORATION IF HE HAS NEVER WORKED IN ONE HAS NEVER EXPERIENCED OFFICE POLITICS AND DOESN'T KNOW HOW THINGS OPERATE IN A COMPANY ASKS HOWARD PINES PRESIDENT OF BEAMPINES SPECIALISTS SAY IT ALSO IS CRITICAL FOR YOU TO LOCATE A COACH EXPERIENCED AT ASSISTING PEOPLE WACKGROUNDS IF YOU ARE AN EXECUTIVE YOU WILL GAIN LITTLE FROM A CAREER STRATEGIST WHO ONLY ADVISES HOUSEWIVES RETURNING TO THE JOB MARKET SOME CAREER COACHES SPECIALIZE BY INDUSTRY JOB LEVEL OR PROFESSION FIVE YEARS AGO PAM ROBERTSON HIRED A CAREER COUNSELOR BECAUSE THE MAN HAD WORKED EXTENSIVELY WITH FEMALE MANAGERS MS ROBERTSON SAYS SHE WAS HAVING DIFFICULTY ADVANCING IN THE HUMANRESOURCES DEPARTMENT OF THE FEDERAL RESERVE BANK IN LOS ANGELES HER COACH GEORGE SCHMUTZ SAYS HE HELPED HER TO REALIZE SHE HAD BEEN TOO TIMID IN HER PURSUIT OF A PROMOTION SHE SAYS HIS ADVICE LED HER TO LAND A VICE PRESIDENT'S JOB TWO YEARS AGO IN THE HUMANRESOURCES DEPARTMENT OF WAREHOUSE ENTERTAINMENT TORRANCE CALIF SHE ALSO RECEIVED A HANDSOME 20000 PAY INCREASE SHE ADDS NOW WITH MR SCHMUTZ'S ASSISTANCE MS ROBERTSON AGAIN IS LOOKING ELSEWHERE THIS TIME FOR A SENIOR VICE PRESIDENT'S JOB YET EVEN ONCE YOU KNOW WHAT TO LOOK FOR YOU MAY HAVE TROUBLE FINDING A REPUTABLE CAREER COUNSELOR YOU MIGHT ASK YOUR COMPANY FOR LEADS OR EVEN TO PICK UP THE TAB MORE BUSINESSES HAVE STARTED HIRING COACHES FOR THEIR EXECUTIVES LAST YEAR AMERICAN TELEPHONE & TELEGRAPH BEGAN USING OUTSIDE CAREER COUNSELORS TO HELP SOME NEW MANAGERS ADAPT QUICKLY COMPANIES REALIZE THAT VERY SENIOR MANAGERS NEED A SOUNDING BOARD SOMEONE WHO CAN HELP THEM KEEP A PERSPECTIVE AND BALANCE HEAVIER WORKLOADS EXPLAINS GEORGE MATYAS PRESIDENT OF GM ASSOCIATES IN BEDMINSTER NJ THIS ALSO HELPS MANAGERS FIND GREATER JOB SATISFACTION THAT'S ESPECIALLY IMPORTANT DURING TIMES WHEN PROMOTIONS AND PAY INCREASES ARE RARE 9310200037 931020 BILL ALLOWING SEC TO RAISE FEES CLEARS SENATE PANEL WASHINGTON THE SENATE BANKING COMMITTEE UNANIMOUSLY CLEARED A BILL THAT WOULD GIVE SECURITIES REGULATORS MORE RESOURCES TO INSPECT INVESTMENT ADVISERS THE LEGISLATION WHICH NOW GOES TO THE FULL SENATE FOR A VOTE WOULD ALLOW THE SECURITIES AND EXCHANGE COMMISSION TO RAISE THE FEES INVESTMENT ADVISERS PAY TO THE SEC AND LEVY THEM ANNUALLY CURRENTLY INVESTMENT ADVISERS PAY A ONETIME REGISTRATION FEE OF 150 TO THE SEC THE NEW FEES WOULD RUN FROM 300 TO 7000 BASED ON THE ASSETS MANAGED BY THE ADVISER THE BILL WOULD ALSO GIVE THE SEC THE AUTHORITY TO REQUIRE INVESTMENT ADVISERS TO OBTAIN SURETY BONDS TO SET UP FUNDS FOR DEFRAUDED CLIENTS A PROVISION OF THE BILL DIRECTS THE SEC HOWEVER TO ALLEVIATE THE BONDING REQUIREMENTS FOR SMALLER AND RURAL FIRMS THAT MAY HAVE DIFFICULTY OBTAINING BONDING SIMILAR LEGISLATION PASSED IN THE HOUSE IN MAY 9310200034 931020 ECONOMY HOUSING STARTS IN SEPTEMBER ROSE 28 TO HIGHEST LEVEL IN MORE THAN 3 YEARS BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSING STARTS IN SEPTEMBER ROSE FOR THE SECOND MONTH IN A ROW CLIMBING 28 TO THE HIGHEST LEVEL IN MORE THAN THREE YEARS THE COMMERCE DEPARTMENT SAID LAST MONTH'S INCREASE TO AN ANNUAL RATE OF 1351000 UNITS FOLLOWED A REVISED 67 RISE IN AUGUST TO A 1314000 ANNUAL RATE BEHIND THE LATEST INCREASE WAS A 522 SPURT IN MULTIFAMILY BUILDINGS STARTS OF SINGLEFAMILY HOMES WHICH SOARED TO NEARRECORD LEVELS IN AUGUST FELL 3 LAST MONTH THE TWO CONSECUTIVE INCREASES REASSURED ANALYSTS THAT LOW INTEREST RATES ARE BOOSTING THE HOUSING SECTOR EVEN THOUGH NEWHOME SALES FELL IN JULY AND AUGUST WARREN LASKO EXECUTIVE VICE PRESIDENT OF THE MORTGAGE BANKERS ASSOCIATION OF AMERICA SAID BUILDERS AND BUYERS WHO HAVE BEEN IN A WAITANDSEE MODE ARE CAUTIOUSLY TAKING ADVANTAGE OF SOME OF THE LOWEST INTEREST RATES IN 25 YEARS USUALLY YOU'RE NOT GOING TO SEE AN INCREASE IN STARTS IF THE TREND FOR SALES IS NOT UP SAID MARILYN SCHAJA OF DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE HIGHER LEVEL OF STARTS ALSO SHOULD CAUSE A PICKUP IN CONSTRUCTION IN THE FOURTH QUARTER AND THE FIRST QUARTER OF NEXT YEAR WHICH BODES WELL FOR OVERALL ECONOMIC GROWTH SHE SAID A SURVEY BY THE NATIONAL ASSOCIATION OF HOME BUILDERS SHOWED THAT MEMBERS EXPECT CONSTRUCTION WILL BE STRONG BECAUSE THE DEMAND SIDE OF THE MARKET IS QUITE NICE SAID DAVID SEIDERS THE GROUP'S CHIEF ECONOMIST THE GOVERNMENT REPORTED APPLICATIONS FOR BUILDING PERMITS CONSIDERED AN INDICATOR OF FUTURE CONSTRUCTION ROSE 08 LAST MONTH TO A 1252000 ANNUAL RATE THE HIGHEST LEVEL SINCE FEBRUARY 1990 THE SEPTEMBER JUMP FOLLOWED A REVISED 69 INCREASE IN AUGUST THE BIG INCREASE IN APARTMENT CONSTRUCTION TO A 210000 ANNUAL RATE SURPRISED ANALYSTS WHO SAID MANY OF THOSE STARTS WERE PROMPTED BY THE REINSTATEMENT OF LOWINCOME HOUSING TAX CREDITS THE CREDITS ENCOURAGE CONSTRUCTION OF RENTAL UNITS FOR THE POOR EVEN THOUGH VACANCY RATES ARE HIGH NATIONWIDE THE DECLINE IN SINGLEFAMILY HOUSING STARTS TO A 1141000 ANNUAL PACE WAS THE THIRD IN FOUR MONTHS OVERALL HOWEVER STARTS ARE UP 109 FROM LAST YEAR'S PACE AND THE SEPTEMBER LEVEL WAS THE HIGHEST SINCE THE 1437000 ANNUAL RATE OF FEBRUARY 1990 REGIONALLY ALL AREAS SAW INCREASED HOUSING STARTS EXCEPT THE SOUTH WHERE STARTS SLIPPED 05 THE NORTHEAST LED THE NATION WITH A 123 INCREASE STARTS ROSE 53 IN THE MIDWEST AND 28 IN THE WEST ALL FIGURES ARE ADJUSTED FOR SEASONAL VARIATIONS 9310200033 931020 BUSINESS BRIEF VIRTUALITY GROUP PLC SHARES IN FIRM START TRADING AT 73 ABOVE THE ISSUE PRICE SHARES IN VIRTUALITY GROUP PLC STARTED TRADING ON THE LONDON STOCK EXCHANGE YESTERDAY AT 294 PENCE 437 A 73 PREMIUM TO THE ISSUE PRICE OF 170 PENCE BUT THE SHARES OF THE UK VIRTUALREALITY GAMES COMPANY EASED FROM THE OPENING HIGH TO 284 PENCE STILL ABOVE EXPECTATIONS FOR THE OPENING A MARKET MAKER FOR THE STOCK SAID THE SHARES PEAKED AT 310 PENCE IN THE FIRST 10 MINUTES OF TRADING HE SAID VOLUME HAS BEEN HIGHER THAN EXPECTED WITH AT LEAST 14 MILLION SHARES TRADED IN THE FIRST HOUR BROKERS AND ANALYSTS HAD EXPECTED THE SHARES TO OPEN STRONGLY AT 250 PENCE TO 280 PENCE LAST WEEK VIRTUALITY RAISED 945 MILLION AFTER COSTS BY PLACING 74 MILLION SHARES OR 284 OF THE COMPANY AT 170 PENCE EACH APAX PARTNERS A BRITISH VENTURECAPITAL GROUP HOLDS 51 OF VIRTUALITY 9310200032 931020 INTERNATIONAL NEWCAR SALES IN THE NETHERLANDS AMSTERDAM A TREND IN THE NETHERLANDS OF DECLINING NEWCAR SALES LEVELED OFF IN THE THIRD QUARTER AFTER SALES FELL STRONGLY IN THE FIRST TWO QUARTERS ACCORDING TO INDUSTRY ORGANIZATION RIJWIEL & AUTOMOBIEL INDUSTRIE FIGURES RELEASED BY THE GROUP SHOW THAT NEWCAR SALES DROPPED ONLY 02 IN THE THIRD QUARTER FROM THE YEAREARLIER PERIOD IN THE FIRST AND SECOND QUARTERS SALES DECLINED 33 AND 82 RESPECTIVELY 9310200031 931020 BUSINESS BRIEF LUXCEL GROUP INC MARIGA IN VENTURE TO OFFER WIRELESS SERVICE IN RUSSIA LUXCEL GROUP INC SAID ITS 50OWNED UNIT MARIGA COMMUNICATIONS CORP HAS ESTABLISHED A RUSSIAN JOINT VENTURE TO PROVIDE WIRELESSTELEPHONE SERVICE LUXCEL A PARAMUS NJ WIRELESSCOMMUNICATIONS SERVICE AND EQUIPMENT COMPANY SAID THE FREQUENCY LICENSE WAS AWARDED BY THE RUSSIAN GOVERNMENT THE COMPANY SAID ITS RUSSIAN PARTNER TIKOR HAS DEVELOPED EQUIPMENT AND HOLDS A NATIONAL LICENSE TO PROVIDE THE WIRELESS SERVICES AND LUXCEL WILL MARKET AND MANAGE THE SYSTEM LUXCEL SAID INITIAL FIELD TESTS OF THE SYSTEM HAVE YIELDED POSITIVE RESULTS AND CERTIFICATION FROM THE RUSSIAN GOVERNMENT FOR THE USE OF THE EQUIPMENT HAS BEEN APPLIED FOR THE COMPANY PLANS TO LAUNCH THE SERVICES IN CERTAIN CITIES OUTSIDE OF MOSCOW WHICH HAVE A TOTAL POPULATION OF ABOUT 28 MILLION 9310200030 931020 CORNING INC POSTS THIRDQUARTER LOSS OF 339 MILLION BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL CORNING INC WHICH WARNED ANALYSTS ABOUT GLOOMY EARNINGS LAST WEEK REPORTED A THIRDQUARTER NET LOSS OF 339 MILLION OR 18 CENTS A SHARE AFTER CHARGES OF 1205 MILLION REVENUE WAS 12 BILLION IN THE YEAREARLIER QUARTER NET INCOME WAS 1003 MILLION OR 54 CENTS A SHARE AFTER A GAIN OF 500000 FROM TAXLOSS CARRYFORWARDS REVENUE WAS CLOSE TO 11 BILLION A YEAR EARLIER THE CORNING NY CONCERN WHICH PRODUCES SPECIALTY MATERIALS FIBER OPTICS LAB SERVICES AND CONSUMER PRODUCTS SAW ITS STOCK SLIDE TO A 52WEEK LOW AFTER ITS FORECAST IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CORNING CLOSED AT 25625 DOWN 25 CENTS THE CHARGES INCLUDE 985 MILLION FOR RESTRUCTURING MUCH OF THAT REFLECTS THE COST OF INTEGRATING CORNING'S RECENT DAMON AND COSTAR ACQUISITIONS THE REMAINING 225 MILLION IS FOR THEPATH LAB UNIT'S SETTLEMENT WITH THE DEPARTMENT OF JUSTICE THE JUSTICE DEPARTMENT ALLEGED THAT METPATH HAD SUBMITTED MEDICARE CLAIMS FOR UNNECESSARY BLOOD TESTS THE SETTLEMENT WASN'T AN INDICATION OF GUILT CORNING ALSO TOOK A 95 MILLION CHARGE AGAINST EQUITY EARNINGS FOR A RESTRUCTURING AT ITS TROUBLED VITRO CORNING SA CONSUMER HOUSEWARES VENTURE WITH VITRO SA OF MEXICO CORNING SAID ITS EARNINGS WERE HURT MOSTLY BY POOR PERFORMANCE IN ITS CONSUMER HOUSEWARES UNIT AND IN CYCLICAL BUSINESSES SUCH AS SPECIALTY MATERIALS ANALYSTS HAVE BEEN PUSHING CORNING TO SELL ITS HOUSEWARES UNIT BUT MORE SIGNIFICANTLY FOR ANALYSTS GROWTH STALLED IN THE TWO BUSINESSES THAT HAVE DRIVEN CORNING'S EARNINGS IN RECENT YEARS FIBER OPTICS AND LAB SERVICES IN FIBER OPTICS REGIONAL BABY BELL CUSTOMERS HAVE NEGOTIATED LOWER PRICES IN RETURN FOR LONGER CONTRACTS AT A FIXED PRICE AND IN LAB SERVICES SLOWER DEMAND AND INCREASING COMPETITION HAS LED TO WEAKER PRICES ANALYSTS SAY THOSE BUSINESSES PROBABLY WON'T TURN AROUND FOR AT LEAST SIX MONTHS IN A STATEMENT CORNING'S CHAIRMAN JAMES R HOUGHTON SAID THAT THE FACTORS THAT HURT CORNING'S EARNINGS ARE TEMPORARY WHILE WE ARE DISAPPOINTED THAT OUR STEADY PROGRESS HAS BEEN TEMPORARILY INTERRUPTED BY EXTERNAL FACTORS WE ARE RESPONDING AGGRESSIVELY BY GETTING OUR COST STRUCTURE BETTER ALIGNED WITH CURRENT BUSINESS CONDITIONS 9310200028 931020 ECONOMY FED OFFICIALS CRITICIZE BILL ON DISCLOSURE OF THEIR DISCUSSIONS WASHINGTON THE SEVEN MEMBERS OF THE FEDERAL RESERVE BOARD AND THE 12 PRESIDENTS OF THE REGIONAL FED BANKS TOLD THE HOUSE BANKING COMMITTEE THAT THEY STRONGLY OPPOSE A BILL THAT WOULD FORCE THEM TO PROMPTLY RELEASE MOREDETAILED REPORTS OF THEIR DELIBERATIONS BUT SIX REGIONAL BANK PRESIDENTS SAID THEY WOULD BE WILLING TO RELEASE DETAILED THOUGH EDITED RECORDS OF THEIR MEETINGS AFTER A LAG OF FIVE YEARS OR SO A PRACTICE THE FED ABANDONED IN 1976 FED GOV JOHN LAWARE SUGGESTED A ONEYEAR DELAY THE FED NOW RELEASES A SUMMARY OF ITS POLICYCOMMITTEE DELIBERATIONS AFTER A SIXWEEK LAG BUT THE WALL STREET JOURNAL REPORTED THE OUTCOME OF 11 OF 34 MEETINGS HELD BETWEEN MARCH 1989 AND MAY 1993 WITHIN THE FOLLOWING WEEK MONETARY ECONOMIST ANNA SCHWARTZ TOLD THE COMMITTEE FED CHAIRMAN ALAN GREENSPAN SAID THAT ANY FUTURE LEAK WILL BE FOUP VERY AGGRESSIVELY BY A FULL INVESTIGATION THAT WILL INCLUDE GATHERING SWORN STATEMENTS FROM ALL ATTENDEES IF LEAKS PERSIST HE SAID THE FED WILL HAVE TO REEVALUATE ITS POLICY OF DELAYING PUBLIC RELEASE OF ITS DECISIONS MR GREENSPAN DISCLOSED YESTERDAY THAT THE FED MAKES AUDIO TAPES OF ITS MEETINGS TO HELP PREPARE THE PUBLIC SUMMARIES BUT THEN RECORDS OVER THE TAPES HE ALSO SAID THE FED STAFF PREPARES UNEDITED TRANSCRIPTS OF THE MEETINGS HOUSE BANKING CHAIRMAN HENRY GONZALEZ D TEXAS HAS PROPOSED THAT THE FED BE REQUIRED TO DISCLOSE DECISIONS WITHIN ONE WEEK AND TO RELEASE A TRANSCRIPT AND VIDEOTAPE OF ITS MEETINGS WITHIN 60 DAYS BUT THE FED OFFICIALS SAID SUCH CHANGES WOULD LIMIT THEIR FLEXIBILITY AND DISCOURAGE FRANK EXCHANGES AT THEIR MEETINGS 9310200027 931020 TECHNOLOGY POLAROID PROFIT FELL 10 IN THIRD QUARTER BUT SALES CLIMBED 4 CAMBRIDGE MASS POLAROID CORP SAID THIRDQUARTER NET INCOME DECLINED 10 TO 249 MILLION OR 53 CENTS A SHARE FROM 277 MILLION OR 59 CENTS A SHARE A YEAR EARLIER REFLECTING IN PART NEWPRODUCT INTRODUCTION COSTS THE DECLINE CAME DESPITE A BOOST OF ABOUT 3 MILLION THE COMPANY RECEIVED BY WAY OF A LOWER TAX RATE ATTRIBUTABLE TO RECENTLY ENACTED CORPORATE TAX CONSIDERATIONS SALES OF THE INSTANTPHOTOGRAPHY CONCERN INCREASED 4 TO 5339 MILLION FROM 5141 MILLION IN THE YEAREARLIER QUARTER SALES WERE HELPED BY THE INTRODUCTION OF ITS NEW CAMERA CAPTIVA IN THE US AS WELL AS ABROAD BUT THE NEWS WASN'T BRIGHT ON ALL FRONTS POLAROID SAID BECAUSE OF UNCERTAINTY IN THE US HEALTHCARE MARKET ARISING FROM POTENTIAL GOVERNMENTPOLICY CHANGES IT WILL NOT REACH ITS PREVIOUS EXPECTATION OF SHIPPING HUNDREDS OF UNITS IN 1993 OF ITS HELIOS MEDICAL LASER IMAGING SYSTEM ALEX HENDERSON ANALYST FOR PRUDENTIAL SECURITIES RESEARCH SAID ANALYSTS WERE EXPECTING POLAROID TO SELL BETWEEN 300 AND 500 HELIOS UNITS THIS YEAR FOR A TOTAL OF 15 MILLION TO 25 MILLION IN SALES IT APPEARS NOW THAT POLAROID WILL DO LESS THAN 10 MILLION OF HELIOS BUSINESS IN 1993 HE ESTIMATES HELIOS IS POLAROID'S FIRST MAJOR DEPARTURE FROM INSTANT PHOTOGRAPHY THE COMPANY'S MAINSTAY THAT IN RECENT YEARS HAS TRAILED A DISTANT SECOND TO CONVENTIONAL 35MM PHOTOGRAPHY MR HENDERSON SAID HE SHAVED OFF 10 CENTS FROM HIS 1994 ESTIMATES TO 290 A SHARE TO REFLECT THE HIGHERTHANEXPECTED STARTUP COST FOR HELIOS POLAROID STOCK FELL 150 OR 44 TO CLOSE AT 32625 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9310200026 931020 BUSINESS BRIEF GERBER PRODUCTS SAYS PROFIT ROSE SLIGHTLY IN FISCAL 2ND QUARTER FREMONT MICH GERBER PRODUCTS CO REPORTED SLIGHTLY IMPROVED EARNINGS FOR THE SECOND QUARTER ENDED SEPT 30 DESPITE A CONTINUING DECLINE IN US BABY FOOD SALES GERBER SAID IT EARNED 336 MILLION OR 48 CENTS A SHARE COMPARED WITH 327 MILLION OR 44 CENTS A SHARE A YEAR EARLIER THE PERSHARE FIGURES REPRESENT A RECORD BUT REFLECT A 65 REDUCTION IN SHARES FROM A YEAR EARLIER WHEN 47 MILLION MORE SHARES WERE OUTSTANDING THE PERSHARE RESULTS SEVERAL CENTS BETTER THAN WALL STREET HAD BEEN EXPECTING ENDED FIVE CONSECUTIVE QUARTERS IN WHICH PERSHARE EARNINGS HAD BEEN BELOW THOSE OF A YEAR EARLIER IN THE PAST YEAR GERBER STOCK HAS LOST MORE THAN 25 OF ITS VALUE DROPPING ABOUT 10 A SHARE IT CLOSED YESTERDAY AT 28875 UP 375 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING REVENUE FELL 99 TO 311 MILLION FROM 345 MILLION REFLECTING SLIPPAGE IN BABY FOOD BABY CARE AND APPAREL SALES AND THE SALE OF THE COMPANY'S BUSTER BROWN CHILDREN'S APPAREL UNIT IN FEBRUARY DESPITE THE EARNINGS IMPROVEMENT THE RESULTS INDICATE CONTINUING CHALLENGES AT THE WORLD'S LARGEST BABYFOOD COMPANY FOOD SALES TOTALED 2074 MILLION DOWN 11 MILLION IN THE LATEST QUARTER ON A 2 VOLUME DECLINE GERBER SAID ITS SHARE OF THE DOMESTIC BABY FOOD MARKET HELD AT AN AVERAGE OF 71 IN THE SIX MONTHS EARNINGS TOTALED 601 MILLION OR 86 CENTS A SHARE COMPARED WITH 652 MILLION OR 88 CENTS A SHARE A YEAR EARLIER BEFORE A 904 MILLION ACCOUNTING CHARGE THAT RESULTED IN A LOSS OF 252 MILLION OR 34 CENTS A SHARE REVENUE FELL 10 TO 5936 MILLION FROM 6602 MILLION 9310200024 931020 WORLD MARKETS GLOBAL RALLY PAUSES AS PROFITTAKERS MOVE IN AND SHARES FALL IN LONDON FRANKFURT AND TOKYO A WALL STREET JOURNAL NEWS ROUNDUP PROFITTAKERS MOVED IN YESTERDAY HITTING THE PAUSE BUTTON ON THE GLOBAL STOCK RALLY LONDON EQUITIES WERE KNOCKED DOWN AS INVESTORS DECIDED THE EXCHANGE'S RECORD PACE WAS OVERDONE FRANKFURT SHARES ENDED LOWER IN A CONSOLIDATION FOLLOWING RECENT GAINS TO NEW HIGHS TOKYO SHARE PRICES WEAKENED ACROSS A BROAD FRONT TUESDAY IN THIN DEALINGS AS MANY INVESTORS BOWED OUT WITH THE MARKET STUCK IN NARROWRANGE TRADING ON OTHER ASIAN AND PACIFIC MARKETS THE RECENT BULL RUN WAS FORCED TO TAKE A BREATHER AS PROFITS WERE GRABBED HALTING A SERIES OF RECORDSETTING WINNING STREAKS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11321 DOWN 035 REFLECTING DECREASES IN ALL REGIONS PLANTATION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 17024 UP 588 OR 36 WITH DUNLOP ESTATES OF MALAYSIA POSTING A 94 GAIN IN ITS LOCAL CURRENCY BIOTECHNOLOGY STOCKS TRAILED AT 7525 DOWN 254 OR 33 WITH CENTOCOR OF THE US SLIDING 63 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 80 POINTS TO 31296 THE FT 30STOCK INDEX FELL 92 POINTS TO 23538 VOLUME WAS 6582 MILLION SHARES COMPARED WITH 6658 MILLION SHARES A DAY EARLIER PROFITTAKERS MOVED IN EARLY AND KEPT LONDON STOCK PRICES DOWN ALL DAY AFTER BRITISH INVESTORS DECIDED THE RECENT RALLY HAD RUN ITS COURSE THE MARKET HAD BEEN BUOYED BY US INVESTORS FOR SEVERAL SESSIONS AND PRICES HAD RISEN ON TENUOUS FACTORS SUCH AS HOPES FOR A BASE LENDINGRATE CUT IN BRITAIN AND SPECULATION ABOUT THE GOVERNMENT'S TAXATION PLANS IN THE COMING BUDGET THOUGH THE DECLINE WASN'T UNEXPECTED TRADERS DIDN'T EXPECT ANY SHARP DROPS IN THE NEAR TERM THEY SAID INVESTORS PROBABLY WILL CONTINUE THEIR STRATEGY OF ROTATING OUT OF SECTORS THAT BECOME HIGHLY VALUED AND MOVING INTO BARGAIN AREAS THE BANKING SECTOR FELL VICTIM TO WORRIES ABOUT PRESSURE ON PROFIT MARGINS FOLLOWING THE PREVIOUS DAY'S SELLOFF ON THE SAME FACTOR IN NEW YORK AFTER A PRIMERATE CUT THE LONDON SECTOR ALSO WAS CLOUDED WHEN SOME BROKERS TURNED BEARISH ON A FEW HIGHFLYING BANK STOCKS IN FRANKFURT THE DAX 30STOCK INDEX SHED 656 POINTS TO 202676 ALSO PRESSURED BY WEAKNESS IN A FEW HEAVILY WEIGHTED GERMAN AUTO SHARES OF THE DAX ISSUES 19 FELL AND 10 ROSE IN LIGHT TURNOVER BUT DEALERS SHRUGGED OFF THE SLIM LOSSES TERMING THE PROFITTAKING HEALTHY AND SAYING THE MOMENTUM THAT HAS DRIVEN THE DAX TO NEW HIGHS OVER THE PAST MONTH REMAINS INTACT THE CONSOLIDATION RATHER THAN A CORRECTIVE DROP WAS EXPECTED TO CONTINUE FOR A FEW DAYS THE SURGING US DOLLAR HELPED KEEP A FLOOR UNDER THE EXCHANGE'S RETREAT YESTERDAY DOLLAR STRENGTH HELPS MINIMIZE CURRENCYCONVERSION LOSSES WHEN GERMAN COMPANIES WITH LARGE FOREIGN OPERATIONS OR EXPORTS REPATRIATE PROFITS BUT IN PARIS SHARE PRICES ROSE SLIGHTLY LIFTED LATE IN THE SESSION IN RESPONSE TO AN EARLY RISE ON WALL STREET INVESTORS WERE CAUTIOUS AS ECONOMIC AND INTERESTRATE UNCERTAINTIES KEPT MANY PLAYERS SIDELINED AND THE GOVERNMENT INDICATED ITS GROWTH FORECASTS IN THE 1994 BUDGET PROPOSAL MAY BE TOO OPTIMISTIC IN AMSTERDAM THOUGH EQUITIES FINISHED MIXED TO FIRMER BUT BELOW THE DAY'S HIGHS AS PROFITTAKERS EMERGED FOLLOWING MONDAY'S STEEP GAINS THE STRONG DOLLAR SUPPORTED SHARES OF COMPANIES THAT DERIVE LARGE PARTS OF THEIR EARNINGS IN THE US CURRENCY IN MILAN STOCK PRICES FELL LED DOWN BY THE AUTO SECTOR AND A GENERAL CONSOLIDATION FOLLOWING FRENZIED TRADING IN THE TWO PREVIOUS SESSIONS IN MADRID THE MARKET ALSO CONSOLIDATED LEAVING PRICES FLAT IN ZURICH EQUITIES ENDED MIXED AS MANY INVESTORS LIQUIDATED POSITIONS FOLLOWING A 2 SURGE THE DAY BEFORE IN STOCKHOLM AFTER A STRONG OPENING STOCKS DROPPED FROM THE PREVIOUS SESSION'S ALLTIME HIGH AS BLUE CHIPS FELL BACK IN LATE TRADING IN BRUSSELS DESPITE POSITIVE ECONOMIC SIGNALS STOCKS FELL IN A CONSOLIDATION AND SOME PROFITTAKING IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 10221 POINTS MONDAY EDGED DOWN 230 TO 2006991 IN TRADING EARLY WEDNESDAY IN TOKYO THE NIKKEI ROSE 3780 POINTS TO 2010771 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 210 MILLION SHARES DOWN FROM 2189 MILLION SHARES A DAY EARLIER LOSERS TROUNCED GAINERS 595323 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAVE UP 532 POINTS MONDAY DECLINED 423 TO 164446 THE NIKKEI REMAINED MIRED JUST ABOVE 20000 TRADING BETWEEN THE DAY'S LOW OF 2004240 AND HIGH OF 2020402 THE JAPANESE GOVERNMENT AND MANY MARKET PLAYERS REMAINED INTENT ON PROTECTING THAT LEVEL AHEAD OF THE HUGE LISTING NEXT TUESDAY OF EAST JAPAN RAILWAYS WHILE JAPAN'S ECONOMIC WEAKNESS ISN'T PROVIDING ANY INCENTIVE TO PUSH SHARES HIGHER TELECOMMUNICATIONS AND MULTIMEDIA SHARES WHICH SURGED A DAY EARLIER STALLED OR RETREATED AS DID EXPORTERS LEAVING THE MARKET DIRECTIONLESS THE NIKKEI MOVED LOWER FROM THE OPENING THOUGH BUYING BY PUBLIC PENSION FUNDS AND A REBOUND IN FUTURES PRICES WHICH PROMPTED INDEXLINKED ARBITRAGE BUYING BOOSTED STOCK PRICES BUT THE CLIMB PROVED LIMITED IN SYDNEY SHARE PRICES CLOSED MIXED AFTER INVESTORS GRABBED PROFITS AND A BULL RUN RAN OUT OF STEAM IN MOST SECTORS EXCEPT GOLD STOCKS AND SOME METAL AND MINERAL ISSUES IN HONG KONGSLUMPED 19 ON PROFITTAKING BREAKING THE MARKET'S STREAK OF SIX SUCCESSIVE RECORD HIGHS AND 13 GAINS IN 14 SESSIONS IN SINGAPORE EQUITIES FELL MODERATELY HALTING A WINNING STRING AT SIX TRADING DAYS IN MANILA SHARES RETREATED IN HEAVY TURNOVER ENDING A STRETCH OF RECORDBREAKING SESSIONS AT SIX IN TAIPEI PRICES PLUMMETED ONE DAY AFTER TAIWAN'S RULING PARTY POSTPONED ACTION ON CUTTING THE STOCK TRANSACTION TAX LEGISLATORS AND THE FINANCE MINISTRY AGREED TO SHELVE UNTIL JANUARY THE PROPOSED REDUCTION WHICH HAD POWERED STOCK GAINS FOR SEVEN SESSIONS IN A ROW AND IN SEOUL STOCKS FINISHED LOWER IN A CORRECTION FOLLOWING RECENT BULLISHNESS THAT WAS ERODED BY LATE SELLING PRESSURE FROM INSTITUTIONAL INVESTORS AMONG CORPORATE DEVELOPMENTS LONRHO CLIMBED 25 PENCE OR 2 TO 1305 PENCE 194 A BOARDROOM STRUGGLE AT THE INDUSTRIAL CONGLOMERATE SWUNG IN FAVOR OF ITS COCHIEF EXECUTIVE OFFICER DIETER BOCK AS DIRECTORS AGREED TO FOUR NEW APPOINTMENTS INCLUDING TWO NONEXECUTIVE DIRECTORS BACKED BY MR BOCK THE NONEXECUTIVE DIRECTORSHIPS THE FIRST AT LONRHO IN 20 YEARS WERE RESISTED BY TINY ROWLAND COCEO AND INDICATED GAINS BY MR BOCK IN HIS BID TO WIN OPERATING CONTROL HAMMERSON PROPERTY INVESTMENT & DEVELOPMENT CLASS A SHARES GAINED 5 OR 14 TO 374 THE PROPERTY CONCERN DETAILED PLANS TO EQUALIZE ITS TWO CLASSES OF STOCK AND TO SHORTEN ITS NAME TO HAMMERSON PLC SUPERIOR VOTING RIGHTS ARE TO BE REMOVED FROM ORDINARY SHARES AND CLASS A STOCK WILL BE RECLASSIFIED AS ORDINARY STOCK HOLDERS OF CURRENT ORDINARY SHARES WOULD BE COMPENSATED FOR THEIR REDUCED VOTING POWER WITH A FREE ISSUE OF TWO NEW ORDINARY SHARES FOR EVERY 19 OWNED 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 9310200023 931020 NEW CFTC POLICY MAKES INSIDER TRADING OF FUTURES A FELONY WASHINGTON INSIDER TRADING IN THE FUTURES MARKETS WILL BECOME A CRIME UNDER RULES ADOPTED YESTERDAY BY THE COMMODITY FUTURES TRADING COMMISSION THE RULES MANDATED BY CONGRESS LAST YEAR IN THE LEGISLATION REAUTHORIZING THE AGENCY MAKE INSIDER TRADING BY MEMBERS OF FUTURES EXCHANGES A FEDERAL FELONY AND CALL FOR FINES OF AS MUCH AS 500000 AND THE SURRENDER OF TRADING PROFITS ADDITIONALLY THE CFTC CAN GO AFTER INDIVIDUALS OUTSIDE THE EXCHANGES WHO TRADE ON INSIDE INFORMATION THE RULES COVER EXCHANGE MEMBERS WHO TRADE ON MATERIAL NONPUBLIC INFORMATION GLEANED FROM WITHIN COMMITTEES AND GOVERNING BOARDS AT THE EXCHANGES THE CFTC SAID IT HAS NEVER PURSUED AN INSIDERTRADING CASE UNDER CIVIL RULES THAT HAVE BEEN IN PLACE FOR ABOUT FOUR YEARS THE FUTURES INDUSTRY COMPLAINED ABOUT THE INITIAL RULES PROPOSED BY THE AGENCY SAYING THAT THEY WENT BEYOND CONGRESS'S INTENT BUT JOHN DAMGARD PRESIDENT OF THE FUTURES INDUSTRY ASSOCIATION SAID VIRTUALLY ALL OF OUR ISSUES WERE ADDRESSED BY THE CFTC IN THE FINAL POLICY MR DAMGARD SAID HIS GROUP WAS CONCERNED THAT THE RULES WOULD DISCOURAGE PEOPLE FROM SEEKING A SEAT ON GOVERNING BOARDS OR COMMITTEES AT THE EXCHANGES HE SAID THE CFTC MADE IT CLEAR THAT ONLY CASES OF INTENTIONAL INSIDER TRADING WOULD BE PURSUED THE CFTC ALSO DROPPED A RULE THAT WOULD HAVE MADE THE EXCHANGES RESPONSIBLE FOR TRADING BY INDIVIDUALS NOT UNDER THEIR DIRECT AUTHORITY THE CFTC'S ACTING CHAIRMAN SHEILA BAIR SAID SHE BELIEVES THE AGENCY WAS RESPONSIVE TO THE INDUSTRY'S CONCERNS ALTHOUGH WE MAY NOT HAVE GONE AS FAR AS SOME WOULD HAVE LIKED IN EASING THE PROPOSED RULES THE RULES WILL GO INTO EFFECT 30 DAYS AFTER BEING PUBLISHED IN THE FEDERAL REGISTER 9310200022 931020 HEARD ON THE STREET HERITAGE MEDIA MAY HAVE REDEEMING VALUE FOR INVESTORS LOOKING FOR A MARKETING SUCCESS BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHAT DO YOU GET IF YOU CROSS A REDHOT MARKETING COMPANY WITH A CHAIN OF SUPERATTRACTIVE RADIO STATIONS AN UNDERPERFORMING STOCK CALLED HERITAGE MEDIA CORP HERITAGE MEDIA OPERATES 13 RADIO STATIONS SIX TELEVISION STATIONS AND AN INSTORE ADVERTISING BUSINESS AND WHILE PARTS OF HERITAGE'S BUSINESSES ARE SIZZLING INVESTORS AREN'T STAMPEDING TO BUY THE STOCK BOOSTERS CONTEND THAT THE COMPANY IS THE VICTIM OF WALL STREET'S PREFERENCE FOR PUREPLAY ENTERPRISES OVER PATCHWORK CONGLOMERATES BUT BOOSTERS ALSO CONCEDE THAT THE COMPANY'S SUCCESS ISN'T IMMEDIATELY APPARENT WEIGHED DOWN BY HEAVY INTEREST EXPENSE LEFT OVER FROM ITS 1987 LEVERAGED BUYOUT AND BY DEPRECIATION EXPENSE FROM SEVERAL ACQUISITIONS THE COMPANY HASN'T TURNED A FULLYEAR PROFIT SINCE BUT HERITAGE'S LOSSES HAVE STEADILY NARROWED AND YESTERDAY THE COMPANY REPORTED IT HAD CUT THE THIRDQUARTER LOSS TO 22 CENTS A SHARE BEFORE EXTRAORDINARY ITEMS COMPARED WITH A 68CENT LOSS IN THE YEAREARLIER PERIOD A BIG REASON HAS BEEN THE SUCCESS OF AN 18MONTHOLD GIZMO KNOWN AS THE INSTANT COUPON MACHINE WHICH SHOULD ACCOUNT FOR ABOUT 63 MILLION OF THE COMPANY'S ESTIMATED 1993 SALES OF 290 MILLION THE SMALL RED MACHINES WHICH ARE ADORNED BY A FLASHING RED LIGHT AND ATTACH TO STORE SHELVES DISPENSE MONEYSAVING COUPONS IN SUPERMARKETS AND DRUGSTORES AROUND THE US CANADA AND SEVERAL EUROPEAN COUNTRIES THE COUPON MACHINES ARE THE FASTESTGROWING PART OF HERITAGE'S INSTORE ADVERTISING BUSINESS WHICH GENERATES THE BULK OF THE COMPANY'S SALES PARTS THAT ARE SLOWERGROWING OR FLAT INCLUDE TRADITIONAL STORE PROMOTIONS LIKE CART AND SHELF ADVERTISING AND FOOD SAMPLINGS THE COUPON MACHINE IS A HIT PRODUCT CROWS CHRIS WARNING AN ANALYST WITH GRANT PARTNERS IN CHICAGO MEANWHILE AN ADDITIONAL 75 MILLION OF HERITAGE'S 1993 SALES SHOULD COME FROM THE RADIO AND TELEVISION DIVISION IT WOULD SEEM TO BE EXACTLY THE KIND OF OPERATION TO BENEFIT FROM A FEDERAL REGULATORY RULE CHANGE LAST YEAR THAT ALLOWS OWNERSHIP OF AS MANY AS FOUR RADIO STATIONS IN THE SAME MARKET THE CHANGE IS SPURRING BROADCAST COMPANIES TO SCOOP UP COMPETITORS CONSOLIDATE OPERATIONS AND BOOST PROFIT MARGINS MR WARNING NOTES THAT THE STOCKS OF SEVERAL BIG RADIO COMPANIES ARE NOW SIZZLING BUT INVESTORS DON'T SEEM TO NOTICE HERITAGE'S RADIO PROPERTIES THESE RADIO STATIONS SHOULD BE ON FIRE HE ARGUES HERITAGE CLASS A SHARES FELL YESTERDAY TO 15 5/8 DOWN 3/8 TO ABOUT NINE TIMES ESTIMATED 1993 OPERATING CASH FLOW COMPANIES WITH LESSER GROWTH RATES EASILY TRADE AT 11 TO 16 TIMES SUCH CASH FLOW ANALYSTS SAY IF HERITAGE IS TO GET THE STOCK MARKET VALUE IT DESERVES SOME ANALYSTS BELIEVE THE COMPANY MAY HAVE TO SPIN OFF ITS BROADCAST BUSINESS AS AN INDEPENDENT COMPANY BUT JOSEPH MAHAFFEY HERITAGE'S CHIEF FINANCIAL OFFICER SAYS INDENTURES ON A 150 MILLION JUNKBOND ISSUE PRECLUDE SUCH A SPINOFF BEFORE 1997 WHEN THE BONDS CAN BE CALLED SOME INVESTORS AREN'T WILLING TO WAIT THAT LONG OVER THE PAST FEW MONTHS SNYDER CAPITAL MANAGEMENT HAS PROFITED NICELY BY SELLING 400000 HERITAGE SHARES IT BOUGHT ABOUT A YEAR AGO WHEN THE STOCK TRADED AS LOW AS 6 WE STILL FEEL THE COMPANY IS WORTH MORE THAN IT IS SELLING FOR BUT WE FEEL THE MARKET WILL NEVER PAY FULL PRICE UNDER THE PRESENT STRUCTURE SAYS ALAN SNYDER THE FIRM'S PRESIDENT BUT OTHER MONEY MANAGERS AND ANALYSTS ARE BETTING THAT HERITAGE COULD GO AS HIGH AS 25 IN THE NEXT 12 MONTHS EVEN WITHOUT A SPINOFF I'VE BUMPED UP MY NUMBER ON CASH FLOW FOUR TIMES THIS YEAR AND THE COMPANY HAS CONTINUED TO SURPRISE BASED ON THE ASTONISHING GROWTH OF THE INSTANTCOUPON MACHINE SAYS SUSAN DECKER A MEDIA ANALYST WITH DONALDSON LUFKIN & JENRETTE I STILL THINK SOME MULTIPLE EXPANSION IS POSSIBLE BASED ON THE MIX OF ASSETS THE COMPANY HAS MS DECKER CONSIDERS HERITAGE A COMPELLING BUSINESS BECAUSE THE COMPANY'S REVENUE REPRESENTS JUST A DROP IN THE BUCKET WHEN STACKED UP AGAINST THE 2 BILLION SPENT LAST YEAR ON PRINTING AND DISTRIBUTING COUPONS BY FOOD AND CONSUMERGOODS PRODUCERS MOST OF THOSE COUPONS WERE DISTRIBUTED THROUGH PRINT MEDIA WHERE THE REDEMPTION RATE RUNS AROUND 25 BY CONTRAST HERITAGE'S REDEMPTION RATE IS AS HIGH AS 20 MS DECKER SAYS IF HERITAGE'S COUPONS ARE SO EFFECTIVE WILL OTHER COMPANIES START MUSCLING INTO THE BUSINESS DON'T BET ON IT HERITAGE'S METHOD HAS ONE HARDTOREPLICATE FEATURE ITS SUCCESS DEPENDS ON A PARTTIME STAFF OF 14000 TO SERVICE THE MACHINES HERITAGE HAS THIS HUGE PARTTIME STAFF BECAUSE IT ALSO OFFERS THE OTHER INSTORE ADVERTISING SERVICES SUCH AS FOOD SAMPLINGS 9310200021 931020 POLITICS & POLICY PACKWOOD'S JOCULAR DAYS IN THE SENATE CONTRAST WITH SEXHARASSMENT PROTESTS HE FACES OUTSIDE BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN PRESIDENT CLINTON DELIVERED HIS BIG HEALTHCARE SPEECH LAST MONTH OREGON SEN BOB PACKWOOD WAS A MAJOR CENTER OF ATTENTION AS BEFITS THE TOP REPUBLICAN ON THE FINANCE COMMITTEE HE WAS ALSO A MAJOR CENTER OF ATTENTION SOMEWHERE ELSE THAT EVENING JUST A FEW BLOCKS AWAY IN THE GARDENS OF THE STEWART MOTT HOUSE OWNED BY THE WEALTHY LIBERAL ACTIVIST DOZENS OF WOMEN WERE INVOKING THE SENATOR'S NAME AS A NATIONAL SYMBOL OF SEXUAL HARASSMENT SPORTING GOODBYE BOB BUTTONS THEY DEMANDED OPEN HEARINGS BY THE SENATE ETHICS COMMITTEE INTO CHARGES THAT HE MADE UNWANTED ADVANCES TOWARD DOZENS OF WOMEN INCLUDING EMPLOYEES IN OTHER WORDS IT WAS ANOTHER EVENING IN THE DOUBLE LIFE OF BOB PACKWOOD EVER SINCE THE HARASSMENT CHARGES BEGAN PILING UP JUST AFTER LAST NOVEMBER'S ELECTION THE SENATOR HAS BEEN AN OBJECT OF SCORN AND FODDER FOR LATENIGHT COMICS ON HIS INFREQUENT VISITS TO OREGON HE HAS BECOME THE STEALTH SENATOR SLIPPING IN AND OUT OF THE STATE WITH LITTLE OR NO PUBLIC NOTICE IN AN ATTEMPT TO MINIMIZE THE PROTESTS THAT ACCOMPANY HIS PUBLIC APPEARANCES YET IN THE HALLS OF CONGRESS HE REMAINS A FIGURE OF INFLUENCE HELPING TO CHART THE REPUBLICAN COURSE ON SUCH CRUCIAL ISSUES AS HEALTH CARE AND THE NORTH AMERICAN FREETRADE PACT FAR FROM ADOPTING A CONTRITE LOWKEY POSTURE DURING THE ETHICS INVESTIGATION SEN PACKWOOD TAKES PART IN ALL THE CHUMMY PUBLIC BANTER AND RITUALS OF POWER THAT MAKE HIM APPEAR AS RELAXED AND HARDWORKING AS ANY OTHER SENATOR HIS CLOUT HAS DIMINISHED NOT ONE LEAST LITTLE BIT DECLARES SEN DANIEL PATRICK MOYNIHAN THE NEW YORK DEMOCRAT WHO HEADS THE FINANCE COMMITTEE HE ADDS I LOVE THIS MAN NO FEWER THAN 26 WOMEN HAVE COME FORWARD WITH ALLEGATIONS OF SEXUAL HARASSMENT AGAINST MR PACKWOOD THE SENATOR THOUGH HE HAS REFUSED TO DISCUSS THE SPECIFIC ALLEGATIONS AGAINST HIM NONETHELESS HAS PUBLICLY APOLOGIZED FOR HIS CONDUCT BUT MANY OREGONIANS HAVE EXPRESSED OUTRAGE AT THE MANNER IN WHICH HE MANAGED TO DELAY NEWS ACCOUNTS OF THE CHARGES UNTIL AFTER LAST YEAR'S ELECTION IN PART BY CALLING INTO QUESTION THE PERSONAL REPUTATIONS OF THE WOMEN INVOLVED HE DECLINED TO BE INTERVIEWED FOR THIS ARTICLE PEOPLE FAMILIAR WITH THE ETHICS INVESTIGATION INTO SEN PACKWOOD'S CONDUCT SAY HE TESTIFIED BEFORE THE ETHICS COMMITTEE FOR TWO DAYS THIS MONTH THE PANEL IS EXPECTED TO ANNOUNCE BY THE END OF THE MONTH WHETHER IT WILL HOLD OPEN HEARINGS WHILE MOST LAWMAKERS OPERATING UNDER AN ETHICS CLOUD SCURRY HOME TO FIND REFUGE SEN PACKWOOD HAS BEEN SCARCE IN OREGON SCHEDULED TO SPEAK IN JANUARY AT A BUSINESS LEADERS' FORUM IN ASTORIA HIS INVITATION WAS WITHDRAWN AFTER LOCAL WOMEN COMPLAINED TO THE MAYOR THE SAME MONTH SUPPORTERS AND PROTESTERS CLASHED WHEN HE SPOKE IN THE COLLEGE TOWN OF CORVALLIS IN EUGENE PROTESTERS CAUSED MINOR DAMAGE TO HOTEL DOORS HE VENTURED BACK TO OREGON IN LATE AUGUST ZIGZAGGING BETWEEN SMALL TOWNS IN RURAL AREAS WHERE HE WAS LESS LIKELY TO ATTRACT RANCOR BUT A ROTARY CLUB APPEARANCE IN PORTLAND DREW PROTESTERS SHOUTING WE BELIEVE THE WOMEN AND PUBLIC HEARINGS NOW TO AVOID CROSSING THEIR PATH THE SENATOR ARRIVED EARLY AND EXITED VIA A SIDE DOOR CONTRAST THAT WITH THE JOCULAR SCENE LAST WEEK IN A FINANCE COMMITTEE HEARING ON HEALTH CARE CHAIRMAN MOYNIHAN RUEFULLY OBSERVED THAT HE WAS THE ONLY DEMOCRAT PRESENT AMONG A HALFDOZEN REPUBLICANS THAT'S BECAUSE THE REPUBLICANS HAVE INTRODUCED THEIR HEALTH PLAN SEN PACKWOOD SAID TO CHORTLES FROM HIS COLLEAGUES A REFERENCE TO THE WHITE HOUSE DELAY IN SUBMITTING LEGISLATION FOR PRESIDENT CLINTON'S PROPOSAL I DON'T SENSE A MARKED DIFFERENCE IN HIS INFLUENCE SAYS ELLEN NISSENBAUM LEGISLATIVE DIRECTOR FOR THE CENTER ON BUDGET & POLICY PRIORITIES WHICH LOBBIES ON SOCIAL ISSUES THE BOTTOM LINE IS HE IS STILL THE FUNCTIONING LEADER OF REPUBLICANS ON THAT COMMITTEE HER GROUP FOR EXAMPLE WORKED CLOSELY WITH TWO TOP PACKWOOD AIDES ON THE EARNEDINCOME TAX CREDIT FOR THE WORKING POOR THAT BECAME PART OF THE LATEST BUDGET LEGISLATION IF SEN PACKWOOD'S LEGAL TROUBLES MEAN ANYTHING IN THE INSIDETHEBELTWAY WORLD IT IS AN OPPORTUNITY FOR POLITICAL ACTION COMMITTEES TO POUR MONEY INTO HIS LEGAL DEFENSE FUND THIS THEY HAVE DONE ACCORDING TO FINANCIAL DISCLOSURE RECORDS FROM JANUARY THROUGH SEPTEMBER SEN PACKWOOD RACKED UP 279740 FOR HIS LEGAL COSTS THREEQUARTERS OF IT FROM OUTSIDE OREGON THE SENATOR WHO HAS RETAINED THE BLUECHIP WASHINGTON LAW FIRM OF ARNOLD & PORTER TO REPRESENT HIM HAS EVEN MANAGED TO TURN THE PROTESTS AGAINST HIM TO HIS ADVANTAGE THE CORVALLIS DEMONSTRATION WAS VIDEOTAPED AND MAILED TO SUPPORTERS ALONG WITH A PLEA FOR FUNDS FOR HIS LEGAL DEFENSE AMONG THE OREGONIANS WHO HAVE RESPONDED ARE THE KRAUSS TIMBER INTERESTS WHO GAVE 7500 AMONG OTHER CONTRIBUTORS WERE DEALERS IN JAPANESE CARS WHO GAVE 5000 THROUGH THE AUTO DEALERS & DRIVERS FOR FREE TRADE PAC THE LABORERS POLITICAL LEAGUE KICKED IN 10000 WITH THE AIR LINE PILOTS ASSOCIATION CONTRIBUTING ANOTHER 10000 HERB KELLEHER THE COLORFUL CHAIRMAN OF SOUTHWEST AIRLINES AND A NEW YORK UNIVERSITY LAWSCHOOL CHUM OF THE SENATOR'S KICKED IN 4000 THE SENATOR'S ACCUSERS THE SELFSTYLED PACKWOOD 26 HAVE BEEN DOING SOME FUNDRAISING TOO THOUGH NOT ON SO GRAND A SCALE THE EVENT AT THE MOTT HOUSE WHICH FEATURED POSTERSIZED NARRATIVES OF THE SENATOR'S ALLEGED ACTIONS HANGING FROM THE WALLS WAS ONE ANOTHER HAS BEEN HELD IN OREGON AND THE WOMEN HAVE ALSO MADE APPEARANCES IN NEW YORK AND BOSTON SO FAR THEY HAVE RAISED BETWEEN 20000 AND 30000 TO DEFRAY THEIR LEGAL AND OTHER COSTS ACCORDING TO JULIE WILLIAMSON A FORMER PACKWOOD AIDE AND ONE OF THE 26 MOREOVER NATIONAL WOMEN'S GROUPS WHICH WERE INTIALLY SLOW TO GET INVOLVED BECAUSE OF SEN PACKWOOD'S ABORTIONRIGHTS STANCE HAVE NOW DECIDED THAT THE ALLEGATIONS AGAINST THE SENATOR OUTWEIGH THEIR AFFINITY FOR HIS POLITICS AT STAKE IS THE REPUTATION OF THE WOMEN'S MOVEMENT PATRICIA IRELAND PRESIDENT OF THE NATIONAL ORGANIZATION FOR WOMEN DECLARED AT THE PACKWOOD 26 FUNDRAISING EVENT IN WASHINGTON STILL MS WILLIAMSON WHO QUIT WORKING FOR THE SENATOR IN 1969 AFTER SHE SAYS HE STRUGGLED WITH HER PULLED AT HER PONY TAIL AND GRABBED AT HER CLOTHES ARGUES THAT THE DISPARITY BETWEEN THE SENATOR'S FUNDRAISING AND HIS ACCUSERS' IS JUST ONE MORE ILLUSTRATION OF THE IMBALANCE OF POWER THAT MAKES JUNIOR FEMALE STAFFERS AND LOBBYISTS SEXUAL PREY WE'RE ASKING PEOPLE FOR 26 FOR LEGAL EXPENSES SHE SAYS HE ASKS FOR 10000 9310200020 931020 ROCKWELL PRINTINGPRESS ORDER SEAL BEACH CALIF ROCKWELL INTERNATIONAL CORP SAID A UNIT RECEIVED AN ORDER FOR FOURCOLOR PRESSES FROM SINGAPORE PRESS HOLDINGS LTD TERMS OF THE ORDER WEREN'T DISCLOSED THE PRESSES WILL BE USED INITIALLY TO PRINT THE SINGAPORE PUBLISHING COMPANY'S FLAGSHIP ENGLISHLANGUAGE NEWSPAPER THE STRAITS TIMES THE COMPANY'S ROCKWELL GRAPHIC SYSTEMS UNIT WILL MANUFACTURE THE PRESSES THE PARENT COMPANY ALSO HAS INTERESTS IN ELECTRONICS AEROSPACE AND AUTOMOTIVE BUSINESSES 9310200019 931020 WHAT'S NEWS WORLDWIDE THE SENATE WEIGHED LEGISLATION TO CURB CLINTON'S MILITARY INITIATIVES ABROAD THE LAWMAKERS AFTER A TWODAY DEBATE OVER THE ADMINISTRATION'S FOREIGN POLICY REJECTED A GOP MEASURE THAT WOULD HAVE BARRED FUNDS FOR ANY UN OPERATION IN WHICH US SOLDIERS WERE UNDER THE COMMAND OF A FOREIGN OFFICER THE SENATORS THEN ADOPTED A NONBINDING RESOLUTION URGING THE PRESIDENT TO CONSULT WITH CONGRESS BEFORE PUTTING TROOPS UNDER FOREIGN COMMAND BATTLES STILL LOOMED OVER AMENDMENTS BY SEN DOLE CALLING FOR CONGRESSIONAL APPROVAL FOR THE USE OF THE MILITARY IN HAITI AND BOSNIA THE US NAVY SAID IT STOPPED AND BOARDED A BELIZEFLAGGED SHIP OFF HAITI THE FIRST SUCH ACTION SINCE THE REIMPOSITION OF AN OIL AND ARMS EMBARGO CLINTON APPROVED THE WITHDRAWAL OF 750 ARMY RANGERS FROM SOMALIA AND ADMINISTRATION OFFICIALS SAID THE US HAD CALLED OFF A MANHUNT FOR CLAN LEADER AIDID THE PRESIDENT EXPLAINED THAT THE RANGERS SKILLED IN HITANDRUN WARFARE WERE NO LONGER NEEDED BECAUSE MARINE AMPHIBIOUS UNITS OFF THE SOMALI COAST HAVE SIMILAR CAPABILITIES MOSCOW'S MAYOR PROPOSED REMOVING THE REMAINS OF LENIN STALIN AND DOZENS OF OTHER COMMUNISTS FROM RED SQUARE AS PART OF A HISTORICAL RESTORATION PLAN ACCORDING TO A DRAFT DECREE LENIN'S MAUSOLEUM WOULD REMAIN BUT HE WOULD BE REMOVED AND BURIED IN ST PETERSBURG THE GIANT RED STARS ON THE KREMLIN TOWERS WOULD BE TAKEN DOWN THE HOUSE AGAIN REJECTED FUNDING FOR THE ENERGY DEPARTMENT'S SUPERCONDUCTING SUPERCOLLIDER IN TEXAS AND SENATE PROPONENTS OF THE GIANT ATOM SMASHER DESCRIBED THE MULTIBILLIONDOLLAR PROJECT AS DEAD BENAZIR BHUTTO WAS SWORN IN AS PAKISTAN'S PRIME MINISTER GETTING HER SECOND CHANCE IN FIVE YEARS TO LEAD THE NATION BHUTTO SAID SHE WOULD TRY TO IMPROVE RELATIONS WITH THE US WHICH CUT OFF AID IN 1990 OVER CONCERNS ABOUT PAKISTAN'S NUCLEAR PROGRAM HER PRIOR GOVERNMENT WAS DISMISSED ON CHARGES OF CORRUPTION AND MISRULE ISRAEL FREED ITS LONGESTHELD PALESTINIAN PRISONER AFTER 23 YEARS SALIM HUSSEIN ZEREI WHO HAD BEEN SENTENCED TO LIFE IMPRISONMENT WAS CHEERED UPON HIS RETURN TO THE OCCUPIED GAZA STRIP HE WAS THE FIRST OF THOUSANDS OF PRISONERS EXPECTED TO BE RELEASED BY ISRAEL OVER THE COMING WEEKS UKRAINE'S PRESIDENT ACCUSED THE WEST OF FAILING TO OFFER HIS COUNTRY HELP IN DISARMING AND SAID UKRAINE HADN'T ANY ALTERNATIVE BUT TO KEEP SOME NUCLEAR WEAPONS KRAVCHUK SPEAKING FIVE DAYS BEFORE A VISIT BY SECRETARY OF STATE CHRISTOPHER SAID UKRAINE WOULD KEEP 46 SS24 MISSILES BUT HE SAID THEY NO LONGER WOULD BE AIMED AT THE US BOSNIAN MUSLIMS AND CROATS SWAPPED HUNDREDS OF PRISONERS AND THE INTERNATIONAL COMMITTEE OF THE RED CROSS SAID IT EXPECTS A TOTAL OF 5500 DETAINEES TO BE RELEASED BY THE END OF NEXT WEEK CROAT FORCES HANDED OVER 728 MUSLIM PRISONERS AND MUSLIMS FREED 309 CROAT DETAINEES GREENHOUSE GASES CAN BE REDUCED WITHOUT ANY NET INCREASE IN GOVERNMENT SPENDING THE CLINTON ADMINISTRATION SAID THE PRESIDENT'S LARGELY VOLUNTARY PLAN TO COMBAT GLOBAL WARMING WAS UNVEILED AT A WHITE HOUSE CEREMONY RESEARCHERS CLAIMED TO HAVE FOUND ONE NATURAL BRAIN PROTEIN THAT TRIGGERS CRAVING FOR FATTY FOOD AND A SECOND THAT BLOCKS THE DESIRE RAISING HOPES FOR NEW DRUGS THAT COULD CURB WEIGHT GAIN REPORTS ON THE FINDINGS WERE PRESENTED IN MILWAUKEE AT THE ANNUAL MEETING OF THE NORTH AMERICAN ASSOCIATION FOR THE STUDY OF OBESITY THE UN EVACUATED THREE OFFICIALS FROM THE BESIEGED ANGOLAN CITY OF CUITO AND SAID UNITA REBELS WOULD LET AID FLIGHTS RESUME AND 100 FOREIGNERS LEAVE RELIEF WORKERS IN THE CITY SAID THAT AN ESTIMATED 60 PEOPLE ARE DYING DAILY FROM WOUNDS AND STARVATION EXSOVIET REPUBLICS MIGHT CONSIDER ACTING TOGETHER TO HELP GEORGIA PROTECT A VITAL SUPPLY ROUTE FROM REBEL ATTACKS BUT RUSSIA WON'T INTERVENE ON ITS OWN TWO RUSSIAN CABINET MINISTERS SAID IN MOSCOW THEY WERE RESPONDING TO AN APPEAL FROM GEORGIAN LEADER SHEVARDNADZE FOR MILITARY AID INDIAN POLICE BEAT MUSLIM DEMONSTRATORS WITH CLUBS DURING STREET PROTESTS IN SRINAGAR OVER A FOURDAYOLD ARMY SIEGE OF THE REGION'S HOLIEST ISLAMIC SHRINE AT LEAST ONE MUSLIM LEADER WAS HOSPITALIZED 9310200018 931020 EXECUTIVE TELECARD TO SERVE IDB NANUET NY EXECUTIVE TELECARD LTD SAID IT SIGNED AN AGREEMENT WITH IDB COMMUNICATIONS GROUP INC TO PROVIDE CALLING FEATURES WITHIN A COUNTRY OR BETWEEN COUNTRIES OUTSIDE THE US TO IDB CUSTOMERS TERMS WERE NOT DISCLOSED 9310200017 931020 INDIA ANTICIPATES THE ARRIVAL OF THE BEEFLESS BIG MAC BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI INDIA TO ITS HERALDED COLLECTION OF MONUMENTS INDIA WILL BE ADDING THE GOLDEN ARCHES MCDONALD'S CORP WHICH IS ALREADY PEDDLING ITS BIG MACS FROM MOSCOW TO MACAO RECENTLY RECEIVED APPROVAL FROM THE INDIAN GOVERNMENT TO OPEN 20 RESTAURANTS THOUGHOUT THE COUNTRY NO MATTER THAT FOUR OUT OF FIVE INDIANS ARE HINDU AND EAT NO BEEF THE OAK BROOK ILL FASTFOOD CHAIN SAYS IT WILL USE A NONBEEF MEAT SUBSTITUTE BETWEEN ITS BUNS THAT'S NOT UNUSUAL IN INDIA SAYS MCDONALD'S SPOKESMAN BRAD TRASK THE GROUNDBEEF SANDWICH WE KNOW AS HAMBURGER IS COMMON IT'S JUST THAT THE MEAT THEY USE ISN'T BEEF MCDONALD'S SAYS IT HASN'T DECIDED WHAT MEAT WILL BE SUBSTITUTED IF LOCAL INDIAN FASTFOOD COMPETITORS' MENUS ARE ANY INDICATION THE CHAIN WILL BE GRILLING UP LAMB A VERY POPULAR MEAT IN INDIA BUT ASKED ABOUT A LAMBBURGER MCDONALD'S WILL SAY ONLY THAT IT IS CONSIDERING CONSUMER PREFERENCE SUPPLY SYSTEMS AND MARKET RESEARCH BEFORE MAKING A DECISION MCDONALD'S INSISTS THAT IT HAS PLENTY OF EXPERIENCE ADAPTING MENUS TO LOCAL TASTES IN THE 66 COUNTRIES IN WHICH IT OPERATES WHILE HAMBURGERS ARE THE KEYSTONE OF OUR MENU THEY ARE BY NO MEANS THE DEFINITIVE PRODUCT SAYS SPOKESMAN CHUCK EBELING INDEED MCDONALD'S IS ONE OF THE US'S MOST SUCCESSFUL OVERSEAS INVESTORS ABOUT 4400 OF ITS 13400 RESTAURANTS ARE OUTSIDE THE US INCLUDING 1000 IN JAPAN 275 IN LATIN AMERICA THREE IN CHINA AND THREE IN MOSCOW NOT TO MENTION OUTLETS IN SAUDI ARABIA OMAN AND SCHEDULED TO OPEN LATER THIS YEAR ICELAND THE CHAIN REAPED ABOUT 40 OF ITS 1992 REVENUES OF 219 BILLION FROM THE FRENCH FRIES CHICKEN MCNUGGETS AND BURGERS IT SELLS ABROAD MCDONALD'S SAYS IT WILL LIKELY BE 1995 AT THE EARLIEST BEFORE ITS INDIAN RESTAURANTS OPEN FOR BUSINESS MEANWHILE THE COMPANY IS SCOUTING SITES AND LOOKING FOR DISTRIBUTION CHANNELS AND SUPPLIERS AND IT HAS JUST SIGNED A DEAL WITH THE LARGEST CHICKEN SUPPLIER IN INDIA EVEN WITHOUT BEEF SOME OBSERVERS ARE SKEPTICAL THAT MCDONALD'S IN INDIA CAN MATCH THE SUCCESS IT HAS FOUND ELSEWHERE IN ASIA INDIA IS OVERWHELMINGLY POOR WITH AN ANNUAL PER CAPITA INCOME OF LESS THAN 400 I THINK MCDONALD'S IS A VERY USEFUL THING IN AMERICA FOR PEOPLE WHO ARE IN A HURRY AND WANT A QUICK BITE SAYS SURENDRA PRATAP SINGH AN INDIAN SYNDICATED COLUMNIST BASED IN NEW DELHI WHO HAS OFTEN EATEN AT MCDONALD'S ON VISITS TO THE US BUT IN CHINA OR INDIA IT'S A LUXURY NEW YORK CITY CAB DRIVER PARMJIT SINGH A SIKH WHO HAILS FROM MUKERIAN IN NORTHERN INDIA THINKS MCDONALD'S MAY HAVE SOME TROUBLE BECAUSE ITS FOOD IS SO BLAND COMPARED WITH THE SPICY INDIAN CUISINE BUT MCDONALD'S IS UNDAUNTED FOR ONE THING WITH 844 MILLION PEOPLE INDIA PRESENTS A HUGE UNTAPPED MARKET THAT IS HOME TO ABOUT ONE OF EVERY SIX PEOPLE IN THE WORLD ITS MIDDLE CLASS IS LARGER THAN THE POPULATION OF THE UNITED STATES SAYS MCDONALD'S MR TRASK IN 1977 THE INDIAN GOVERNMENT HAD EJECTED MANY FOREIGN COMPANIES BRANDING THEM IMPERIALISTS BUT THE GOVERNMENT HAS CHANGED ITS ATTITUDE TOWARD FOREIGN INVESTMENT AND NOW WELCOMES OVERSEAS INVESTORS COCACOLA CO FOR ONE CAME BACK AND NOW IS ENGAGED IN FEROCIOUS COMPETITION WITH ARCHRIVAL PEPSICO INC WHICH ARRIVED ON THE SCENE IN 1990 MEANWHILE INDIAN FASTFOOD COMPETITORS ARE GEARING UP FOR A FULLSCALE ASSAULT ON THEIR SOONTOBE RIVAL THE MORE THE MERRIER WE'RE A BIG COUNTRY SAYS DEEPAK NIRULA HEAD OF NIRULA'S INDIA'S LARGEST FASTFOOD CHAIN NIRULA'S HAS 18 RESTAURANTS IN NEW DELHI AND THREE IN NEPAL AT ONE NEW DELHI NIRULA'S WHICH SITS NEXT TO A WIMPY'S RESTAURANT THAT IS LOCALLY OWNED ON CONNAUGHT CIRCLE IN THE HEART OF THE CITY THE FARE INCLUDES HAMBURGERS MADE OF MUTTON PIZZA AND A VARIETY OF LOCAL INDIAN FOODS MR NIRULA SAYS THE THING HE LIKES BEST ABOUT MCDONALD'S IS ITS FRENCH FRIES BUT HE NOTES THAT HASH BROWNS AT HIS CHAIN ARE MORE POPULAR THAN FRIES OTHER INDIANS REMEMBER A KNOCKOFF VERSION OF MCDONALD'S KNOWN AS MCDOWELLS WHICH SEVERAL YEARS AGO OPERATED IN NEW DELHI ONE RETIRED CIVIL SERVANT EATING IN A NIRULA'S SAYS HIS LINGERING MEMORY OF THE CHAIN WAS ITS UNCOMFORTABLE PLASTIC FURNITURE 9310200016 931020 HOUSE NO' VOTE ON FUNDING DOOMS TEXAS SUPERCOLLIDER WASHINGTON THE HOUSE AGAIN REJECTED FUNDING FOR THE ENERGY DEPARTMENT'S SUPERCONDUCTING SUPERCOLLIDER IN TEXAS AND SENATE PROPONENTS OF THE GIANT ATOM SMASHER DESCRIBED THE MULTIBILLIONDOLLAR PROJECT AS DEAD THE DEMISE OF THE SSC UNDOUBTEDLY WILL MEAN THE DEMISE OF OTHER GOOD SCIENCE PROJECTS SAID SENATE ENERGY COMMITTEE CHAIRMAN BENNETT JOHNSTON THE HOUSE WAS WRONG BUT THEY HAVE A RIGHT TO BE WRONG THEIR MESSAGE ON DEFICIT REDUCTION AND THE SSC WAS CLEAR AND UNMISTAKABLE THE LOUSIANA DEMOCRAT HAS USED HIS INFLUENCE BEFORE TO OVERCOME HOUSE OBJECTIONS BUT YESTERDAY'S LOPSIDED 282143 MARGIN DEMONSTRATED THAT HE IS MATCHED THIS YEAR AGAINST A POWERFUL COALITION OF ENVIRONMENTAL AND TAXPAYER GROUPS THAT HAVE TAPPED INTO THE BUDGETCUTTING FERVOR IN THE HOUSE'S HUGE FRESHMAN CLASS FEW OF THESE NEWCOMERS FEEL ANY OBLIGATION TO THE COLLIDER AND ARE MORE WILLING TO WALK AWAY FROM WHAT IS ALREADY A 19 BILLION PUBLIC INVESTMENT IN THE COLLIDER LAWMAKERS FROM TEXAS APPEALED TO PRESIDENT CLINTON TO SALVAGE THE PROJECT BUT WITHIN THE APPROPRIATIONS COMMITTEE LEADERSHIP MR JOHNSTON'S REMARKS WERE SEEN AS DECISIVE 9310200015 931020 TECHNOLOGY CYRIX TAKES AIM AT INTEL'S PENTIUM CHIP BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL IN A NEW ATTACK ON SEMICONDUCTOR LEADER INTEL CORP CYRIX CORP SAID IT WILL INTRODUCE CHIPS NEXT YEAR THAT WILL RUN FASTER THAN INTEL'S HIGHPROFILE PENTIUM MICROPROCESSOR THE RICHARDSON TEXAS CHIP MAKER GAVE THE FIRST PUBLIC DESCRIPTION OF ITS NEW M1 ARCHITECTURE AT A TECHNICAL CONFERENCE IN BURLINGAME CALIF SAYING THAT SIMULATIONS SHOW A 30 TO 50 PERFORMANCE EDGE FOR THE M1 DESIGN OVER A COMPARABLE PENTIUM CHIP THE CLAIM GENERATED CONSIDERABLE SKEPTICISM BECAUSE CYRIX HASN'T PRODUCED SAMPLES OF ITS CHIP TO PROVE THAT THE DESIGN CAN BE MANUFACTURED CYRIX'S PERFORMANCE CLAIMS ARE DIFFICULT TO TAKE SERIOUSLY SAID VINOD DHAM THE INTEL VICE PRESIDENT WHO DIRECTED THE DEVELOPMENT OF PENTIUM IT'S EASY TO GET 30 PERFORMANCE INCREASE ON A PAPER DESIGN SAID DAVE CORBIN DIRECTOR OF MARKETING AT MIPS TECHNOLOGIES INC A CHIPDESIGN UNIT OF SILICON GRAPHICS INC BUT CYRIX'S PRESENTATION NONETHELESS WAS A HOT TOPIC OF DISCUSSION YESTERDAY BECAUSE THE CHIP MAY REPRESENT EARLIER COMPETITION THAN INTEL HAS EVER FACED FOR NEWGENERATION MICROPROCESSORS WHICH SERVE AS THE BRAIN IN PERSONAL COMPUTERS IF CYRIX CAN PRODUCE IT IN THE NEXT YEAR OR SO IT COULD POSE SERIOUS COMPETITION FOR PENTIUM SAID MICHAEL SLATER EDITOR OF MICROPROCESSOR REPORT AN INDUSTRY NEWSLETTER THAT SPONSORED THE CHIP FORUM IT'S A RADICAL CHANGE IN THE COMPETITIVE ENVIRONMENT THE PENTIUM WHICH BEGAN SHIPPING THIS YEAR IS INTEL'S FIFTH MAJOR CHIP GENERATION WITH PAST GENERATIONS MR SLATER SAID INTEL WAS ABLE TO SELL A NEW CHIP EXCLUSIVELY FOR SEVERAL YEARS BEFORE RIVALS CLONED IT BUT CYRIX AND OTHERS SUCH AS ADVANCED MICRO DEVICES INC OF SUNNYVALE CALIF COULD BEGIN SHIPPING CHIPS CHALLENGING THE PENTIUM DURING THE CHIP'S SECOND YEAR ON THE MARKET CYRIX'S NEW M1 FAMILY USES SEVERAL ESOTERIC NEW DESIGN TECHNIQUES INCLUDING SOCALLED SUPERSCALAR AND SUPERPIPELINED APPROACHES THAT SORT COMPUTING JOBS SO THEY CAN BE COMPLETED IN THE MOST EFFICIENT ORDER THE COMPANY DID NOT GIVE ANY SPECIFICS ON PRICING OR ON PERFORMANCE BUT CYRIX SAID ITS SELLING POINT IS THAT ITS CHIP OFFERS ULTRAHIGH SPEED WITHOUT ANY NEED FOR MODIFICATIONS TO THE THOUSANDS OF PROGRAMS PC USERS ARE RUNNING NOW INTEL IN CONTRAST SAYS ITS PENTIUM RUNS EXISTING PROGRAMS 60 TO 70 FASTER THAN WITH ITS EARLIER CHIP THE 486 BUT ADDS THAT USERS CAN GET PERFORMANCE INCREASES OF AS MUCH AS 200 WITH SOFTWARE THAT TAKES ADVANTAGE OF SOME SPECIAL FEATURES IN THE CHIP IN SOME CASES SOFTWARE COMPANIES ARE EXPECTED TO SELL NEW VERSIONS OF PROGRAMS THAT HAVE BEEN UPDATED OR RECOMPILED BRUCE BURKHARDT CYRIX'S PROJECT MANAGER ON ITS NEW CHIP DESIGN ARGUES THAT COMPUTER USERS WON'T LIKE BUYING RECOMPILED PROGRAMS TO REAP THE FULL BENEFITS OF PENTIUM WE BELIEVE THERE ARE HIDDEN COSTS OF 1000 TO 2000 IN SOFTWARE ON EVERY MACHINE MR BURKHARDT SAID OTHER COMPETITORS ARE LIKELY TO STRESS THE SAME ISSUE I WOULD EXPECT MORE OF THIS TO HAPPEN BECAUSE A LOT OF COMPANIES AREN'T REALLY IMPRESSED WITH THE PENTIUM SAID ROBERT WARREN A PRODUCT MARKETING MANAGER AT METAWARE INC A COMPANY IN SANTA CRUZ CALIF THAT HAS MADE SOFTWARE THAT HELPS RECOMPILE PROGRAMS FOR PENTIUM INTEL VEHEMENTLY DISAGREES MR DHAM THE VICE PRESIDENT SAID RECOMPILED SOFTWARE ONLY WILL BE NEEDED BY A SMALL NUMBER OF USERS WHO NEED PEAK PERFORMANCE HE ADDED THIS BALLGAME IS NOT JUST INTRODUCING A SIMULATED PROCESSOR YOU HAVE GOT TO MAKE REAL PRODUCTS AND PUT REAL MANUFACTURING CAPACITY IN PLACE THAT COSTS BILLIONS OF DOLLARS CYRIX WHICH RELIES ON OTHER COMPANIES TO MAKE ITS CHIPS WOULD NOT DISCLOSE SPECIFIC MANUFACTURING PLANS BUT CYRIX'S MR BURKHARDT SAID THE COMPANY'S CHIP DESIGN DOESN'T REQUIRE AS MUCH ADVANCED PRODUCTION EQUIPMENT AS INTEL'S PENTIUM 9310200014 931020 INTERNATIONAL ANGOLA'S REFORMS' PROVIDE NO RELIEF FROM IMPACT OF WAR MISMANAGEMENT BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL LUANDA ANGOLA UNTIL RECENTLY ANGOLA WAS YOUR BASIC COMMUNIST STATE POWER WAS CONCENTRATED IN ONE PARTY PRIVATE ENTERPRISE WAS BANNED OFFICIALS WERE CALLED COMRADE AND CUBAN SOLDIERS AND SOVIET ADVISERS PROPPED UP THE GOVERNMENT THE PRESIDENT WAS JOSE EDUARDO DOS SANTOS TODAY ANGOLA'S PARLIAMENT HAS AN OPPOSITION PARTY PRIVATE ENTERPRISE IS ENCOURAGED THE COUNTRY IS A REPUBLIC RATHER THAN A PEOPLE'S REPUBLIC AND FOREIGN BUSINESSMEN HAVE REPLACED THE CUBANS AND SOVIETS AND THE PRESIDENT IS STILL JOSE EDUARDO DOS SANTOS IN THE TURBULENT HISTORY OF TRANSITION FROM COMMUNISM TO FREE MARKETS ANGOLA IS AN ODDITY IT HAS THROWN OUT ALL THAT IT STOOD FOR BUT REELECTED THE SAME PRESIDENT AND RULING PARTY AND IT HAS KEPT THE SAME BLEAK REALITY IN THE OLD DAYS CIVIL WAR RAGED HERE IT DOES TODAY TOO THE UNITED NATIONS SAYS 1000 PEOPLE DIE EACH DAY MAKING IT QUITE PROBABLY TODAY'S DEADLIEST WAR BEFORE ANGOLA WAS AN ECONOMIC MESS NOW IT'S WORSE INFLATION IS RUNNING 1400 ANNUALLY AND THE GOVERNMENT EXPECTS GROSS DOMESTIC PRODUCT TO DROP 20 THIS YEAR SO WHILE MANY HAIL MR DOS SANTOS'S CONVERSION TO FREE ELECTIONS AND CAPITALISM MANY ALSO ARE DISMAYED AT THE RESULTS THE GOOD THING ABOUT DOS SANTOS IS HE'S PREPARED TO LEAVE POWER SAYS A SENIOR WESTERN DIPLOMAT HERE THE BAD THING IS HE'S NOT VERY GOOD AT EXERCISING IT MR DOS SANTOS ISN'T THE ONLY OR WORST CULPRIT ANGOLA IS BACK AT WAR TODAY BECAUSE JONAS SAVIMBI THE FORMERLY USBACKED LEADER OF THE NATIONAL UNION FOR THE TOTAL INDEPENDENCE OF ANGOLA REJECTED DEFEAT IN THE SEPTEMBER 1992 ELECTIONS WHICH UN OBSERVERS CALLED FREE AND FAIR HE THEN RESUMED FIGHTING AFTER AN 18MONTH INTERLUDE THIS MONTH MR SAVIMBI MADE IT KNOWN HE ACCEPTED THE 1992 ELECTION RESULTS PAVING THE WAY FOR THE REOPENING OF PEACE TALKS BUT DIPLOMATS CAUTION IT WILL BE HARD TO RECONCILE TWO SIDES WHO MISTRUST EACH OTHER SO STRONGLY MR SAVIMBI IS BEING VILIFIED INTERNATIONALLY BUT SOME SAY THE GOVERNMENT BEARS SOME RESPONSIBILITY FOR THE CHAOS THEY CONTEND THAT MR DOS SANTOS IS USING WAR AS AN EXCUSE FOR FAILING TO ACT WE HAVE TO GIVE HIM THE BENEFIT OF THE DOUBT BECAUSE OF A VERY SPECIAL SITUATION BUT THIS BENEFIT OF THE DOUBT IS REACHING ITS LIMITS A GOVERNMENT OFFICIAL SAYS IN A DOCUMENT CIRCULATING IN PARLIAMENT A GROUP OF CRITICAL MEMBERS OF THE RULING POPULAR MOVEMENT FOR THE LIBERATION OF ANGOLA SAY THEY'RE SATURATED BY THE UNCONTROLLED RISE IN THE COST OF LIVING THE INCREASE IN MISERY THE GOVERNMENT'S LACK OF AUTHORITY AND THE GROWING INVOLVEMENT BY MEMBERS OF THE GOVERNMENT AND THE ARMED FORCES IN CORRUPTION SCANDALS SUCH OPEN DEBATE WOULD HAVE BEEN UNTHINKABLE IN YEARS PAST BUT IT ALSO REFLECTS THE WEAKNESS OF THE DEMOCRATIC FREEMARKET SYSTEM TO WHICH THE GOVERNMENT PAYS LIP SERVICE WE HAVE A FASTFOOD DEMOCRACY SAYS MANUEL DOMINGOS GENERAL SECRETARY OF THE ANGOLAN DEMOCRATIC FORUM AN OPPOSITION PARTY OUR INSTITUTIONS DON'T FUNCTION MEDICINE AND FOOD ARE IN SUCH SHORT SUPPLY THAT WAR VICTIMS ARE OPERATED ON WITHOUT ANESTHETIC AND CHILDREN DIE OF MALNUTRITION EVEN IN THE WARSPARED CAPITAL YET THE GOVERNMENT SPENDS FOREIGN RESERVES ON LIMOUSINES FOR OFFICIALS AND ARMY OFFICERS PARLIAMENT HAS BEEN DUBBED THE AUDITORIUM BECAUSE OF THE AUDIS MEMBERS DRIVE CARLOS ALBERTO MACMAHON A RULING PARTY LEGISLATOR SAYS MILLIONS OF DOLLARS WERE SPENT ON EXPENSIVE EQUIPMENT TO RENOVATE A HOSPITAL BUT THE HOSPITAL NEVER OPENED BECAUSE THERE WAS NO DARKROOM FOR XRAYS AND DOORS WEREN'T WIDE ENOUGH TO LET BEDS THROUGH THEY BOUGHT THE BEST EQUIPMENT BECAUSE COMMISSIONS WERE HIGHER CHARGES DR MACMAHON IT'S INCOMPETENCE AND CORRUPTION THE ECONOMY IS ON THE BRINK OF COLLAPSE FACTORIES ARE IDLE BECAUSE THEY HAVE NO RAW MATERIALS OR SPARE PARTS SHOPS HAVE NOTHING TO SELL THE CURRENCY'S BLACK MARKET VALUE AGAINST THE DOLLAR TO WHICH PRICES ARE PEGGED IS 13 TIMES THE OFFICIAL RATE TO WHICH SALARIES ARE PEGGED THAT MAKES MOST GOODS INACCESSIBLE TO MOST PEOPLE THE ECONOMIC SITUATION IS CRITICAL ADMITS JOAO LOURENCO THE RULING PARTY'S PARLIAMENTARY WHIP THERE'S VIRTUALLY NO PRODUCTION AND NOT ENOUGH MONEY TO SUBSTITUTE THE LACK OF PRODUCTION WITH IMPORTS MANY OFFICIALS BLAME THE WAR BUT ECONOMISTS SAY THE PROBLEM GOES DEEPER I'D SAY IT'S 55 WAR AND 45 MISMANAGEMENT SAYS ECONOMIST CARLOS MANUEL DE SAO VICENTE THE WAR IS DOING THE MOST DAMAGE BUT THERE'S ALSO THE GOVERNMENT'S WRONG POLICIES THE HUGE FISCAL DEFICIT UNREAL EXCHANGE RATES AND UNRESTRAINED MONETARY POLICY THE GOVERNMENT SO FAR HAS AVOIDED TOUGH MEASURES RELYING ON OIL PRODUCTION OF 550000 BARRELS A DAY TO PAY ITS BILLS MEANWHILE MR DOMINGOS THE OPPOSITION POLITICIAN WHO'S ALREADY TAKING ADVANTAGE OF THE POLITICAL LIBERALIZATION WANTS TO RIDE THE WAVE OF ECONOMIC LIBERALIZATION BY OPENING A BAKERY BUT HE'S INSULATING HIMSELF AS MUCH AS POSSIBLE FROM THE GOVERNMENT HE HAS PORTUGUESE PARTNERS WHO WILL GUARANTEE A STEADY SUPPLY OF FLOUR HE'S BUILDING A WATER TANK TO GET AROUND THE REGULAR SHORTAGES OF WATER AND HAS A GENERATOR TO AVOID BEING CLOSED DOWN BY FREQUENT ELECTRICITY CUTS WE DON'T WANT TO BECOME VICTIMS OF THE GOVERNMENT'S PROBLEMS HE SAYS AND WHO WILL BUY HIS BREAD HIS FIRST CUSTOMER HE SAYS COULD BE THE NEARBY FUTUNGO DE BELAS PRESIDENTIAL PALACE THERE'S A NEED FOR BREAD HERE HE SAYS 9310200013 931020 CREDIT MARKETS JUNK BONDS PARTLY BOUNCE BACK FROM LOSSES EARLY ROUND OF PROFITTAKING POUNDS PRICES BY JACQUELINE DOHERTY AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK DESPITE A WOBBLY JUNKBOND MARKET YESTERDAY ABOUT 660 MILLION OF NEW JUNK BONDS WERE SOLD INCLUDING ONE OF THE YEAR'S LARGEST SINGLE DEALS JUNKBOND PRICES GOT CLOBBERED EARLY WITH MANY BONDS FALLING MORE THAN A POINT OR MORE THAN 10 FOR A BOND WITH A 1000 FACE VALUE THE DECLINES RESULTED FROM INVESTORS TAKING PROFITS BY SELLING SOME OF THEIR BOND HOLDINGS AFTER SUBSTANTIAL PRICE INCREASES LAST WEEK HOWEVER THE JUNK MARKET REGAINED SOME STRENGTH LATER IN THE DAY AND MANY ISSUES ENDED THE DAY WITH LOSSES OF 1/4 TO 1/2 POINT TRADERS SAID MEANWHILE TREASURY SECURITIES ENDED LITTLE CHANGED TO SLIGHTLY HIGHER WITH THE BENCHMARK 30YEAR BOND RISING MORE THAN 1/8 POINT TO 105 22/32 TO YIELD 584 COMPARED WITH 585 ON MONDAY MARKET ANALYSTS DID NOT SEEM TOO WORRIED ABOUT THE BUMPINESS IN JUNK BONDS YESTERDAY ACCORDING TO KINGMAN PENNIMAN HEAD OF HIGHYIELD RESEARCH AT DUFF & PHELPS CORP THE SECONDARY MARKET FOR JUNK BONDS HAD MODERATE TRADING AND THE PRICE DECLINES WERE NOTHING TO WORRY ABOUT MORE IMPORTANTLY HE SAID THERE IS VERY STRONG DEMAND FOR NEW JUNKBOND ISSUES THIS WEEK MANY OF THESE NEW ISSUES OF JUNK BONDS WHICH PEOPLE THOUGHT WOULD COME AT THE LOWER END OF EXPECTED PRICES ACTUALLY CAME AT HIGHER PRICES MR PENNIMAN SAID DEMAND FOR THE HIGHYIELDING JUNK BONDS IS BEING DRIVEN BY MUTUAL FUNDS WHICH ARE STILL GETTING A LOT OF CASH HE SAID AND MARKETTIMERS WHO ATTEMPT TO JUMP INTO THE MARKET TO BENEFIT FROM QUICK RIDES UP PATHMARK STORES INC SOLD 560 MILLION OF JUNK BONDS IN A TWOPART OFFERING THE UNDERWRITERS SAID YIELDS WERE BELOW EXPECTATIONS A SIGN OF STRONGER DEMAND MERRILL LYNCH & CO WAS THE LEAD MANAGER FOR THE OFFERING THE OFFERING WAS REPORTEDLY OVERSUBSCRIBED AND WELL RECEIVED BY THE MARKET SYNDICATE OFFICIALS SAID THE FIRST PART CONSISTED OF 440 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES WHICH WERE PRICED AT 99233 TO YIELD 975 MARKET TALK ORIGINALLY HAD PLACED THE YIELD AS HIGH AS 9875 FOR THE FIRST PART WHICH WAS INCREASED IN SIZE BY 15 MILLION THE NOTES NOT CALLABLE FOR FIVE YEARS WERE RATED SINGLEB2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP THE SECOND PART 120 MILLION OF 10YEAR JUNIOR SUBORDINATED DEFERRED COUPON NOTES WAS PRICED AT 53274 FOR A YIELD TO MATURITY OF 1075 JUST ONE PERCENTAGE POINT HIGHER THAN THE SENIOR SUBORDINATED NOTES THE NOTES NOT CALLABLE FOR SIX YEARS WERE RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P THE DEAL IS PART OF PATHMARK'S RECAPITALIZATION THE SYNDICATE OFFICIAL SAID THE COMPANY PLANS TO PAY DOWN BANK DEBT AND CALL ABOUT 400 MILLION OF ITS OUTSTANDING HIGHCOUPON DEBT A SYNDICATE OFFICIAL SAID THE APPARENT SUCCESS OF PATHMARK'S OFFERING YESTERDAY IS ANOTHER SIGN OF THE GROWING STRENGTH OF DEMAND FOR HIGHERYIELDING BUT RISKIER SECURITIES PATHMARK A UNIT OF SUPERMARKETS GENERAL HOLDINGS CORP HAD ATTEMPTED TO REFINANCE ITS DEBT ABOUT A YEAR AGO BY ISSUING DEBT AND DOING AN INITIAL PUBLIC STOCK OFFERING HOWEVER THE STOCK OFFERING COULD NOT BE COMPLETED AND THE DEBT OFFERING WAS POSTPONED AND RESTRUCTURED ONE SYNDICATE OFFICIAL SAID INVESTORS WERE INTERESTED IN THE DEAL BECAUSE THE COMPANY HAS SHOWN ITS INTEREST IN COMPLETING AN IPO WHEN POSSIBLE IN ADDITION BECAUSE THERE HAS BEEN LITTLE IN THE WAY OF NEW PATHMARK DEBT PAPER RECENTLY MANY OF THE INVESTORS IN THE NEW ISSUE WERE OWNERS IN PATHMARK'S OUTSTANDING DEBT THE SYNDICATE OFFICIAL SAID MERRILL ALSO PRICED A 100 MILLION OFFERING FOR SERVICE MERCHANDISE CO THE COMPANY ISSUED EIGHTYEAR SENIOR NOTES AT 99621 TO YIELD 845 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF ABOUT 363 PERCENTAGE POINTS ABOVE COMPARABLE TREASURYS COMPANIES ALSO SOLD ABOUT 970 MILLION OF INVESTMENTGRADE DEBT YESTERDAY AMONG THE COMPANIES ISSUING NEW BONDS WERE IMCERA GROUP INC WHICH PRICED ITS FIRST CORPORATE BOND OFFERING THROUGH GOLDMAN SACHS & CO AND ALLTEL CORP WHICH SOLD 200 MILLION OF DEBENTURES INVESTMENTGRADE BOND TRADING WAS LIGHT AS PRICES ROSE BY THE END OF THE DAY IN SECONDARY TRADING CABLE COMPANIES WHICH TRADED UP THE MOST LAST WEEK FELL WITH A THUD YESTERDAY ACROSS THE BOARD PRICES WERE DOWN ON CABLE BONDS BY AT LEAST A POINT TRADERS SAID THE PRICE OF CABLEVISION INDUSTRIES CORP'S 10 3/4 COUPON NOTES MATURING IN 2002 HAVE DROPPED NEARLY THREE POINTS SINCE LAST FRIDAY TO 108 1/4 FOR A YIELD OF 939 TREASURY PRICES ENDED LITTLE CHANGED TO NARROWLY HIGHER ON MODERATE BUYING AFTER A STRONG HOUSING REPORT PUSHED PRICES DOWN EARLY IN THE DAY THE 10YEAR NOTE ENDED UNCHANGED AT 103 22/32 TO YIELD 525 WHILE MOST OTHER SECURITIES ROSE BY JUST 1/32 THE COMMERCE DEPARTMENT SAID HOUSING STARTS ROSE BY 28 IN SEPTEMBER TO AN ANNUAL RATE OF 135 MILLION UNITS ANALYSTS HAD PREDICTED AN ANNUAL RATE OF 131 MILLION UNITS THE STRONGERTHANEXPECTED REPORT INDICATES AN UNDERLYING STRENGTH IN THE ECONOMY THAT BELIES RECENT INFLATION AND EMPLOYMENT REPORTS EXHIBITING THE ECONOMY'S WEAKNESS TREASURY PRICES ROSE BRIEFLY BUT DROPPED BY MIDMORNING SOME OF THE BUYING WAS ATTRIBUTED TO MUNICIPAL DEFEASANCE PROGRAMS ALTHOUGH TRADERS SAID THE LOWER PRICES ATTRACTED INSTITUTIONAL INVESTORS WHO HAD BEEN SIDELINED AS THE MARKET MOVED HIGHER IN A DEFEASANCE PROGRAM STATE AND LOCAL GOVERNMENTS ACT TO TAKE ADVANTAGE OF THE LOWINTERESTRATE ENVIRONMENT BY ISSUING NEW DEBT TO REFUND OLDER HIGHERINTEREST SECURITIES BUT UNTIL THE OUTSTANDING DEBT CAN BE CALLED THE PROCEEDS FROM THE NEW ISSUANCE FREQUENTLY ARE INVESTED IN TREASURY SECURITIES CHERYL KATZ MARKET ECONOMIST AT LEHMAN BROTHERS INC SAYS BASIC MARKET PSYCHOLOGY HASN'T CHANGED SHE ATTRIBUTES RECENT PRICE DROPS TO EXPECTED MARKET CORRECTIONS THE PSYCHOLOGY SAYS FUNDAMENTALS SUCH AS EMPLOYMENT AND INFLATION SUGGEST THE ECONOMY REMAINS QUITE WEAK LEHMAN BROTHERS IS PREDICTING FUTURE REPORTS WILL CONFIRM THIS VIEW AND THAT INFLATION WILL MOVE DOWN TO 25 THIS YEAR GIVEN THAT SCENARIO WE SEE THAT LONG RATES WILL CONTINUE TO FALL MS KATZ SAYS NOT EVERYONE THINKS HOWEVER THAT THE MARKET'S LOFTY LEVELS ARE JUSTIFIED ALTHOUGH YIELDS ARE UP THEY ARE STILL SHOCKINGLY LOW TO SOME MAJOR PORTFOLIO MANAGERS DCHROEDER A MANAGER OF SEVERAL TREASURY FUNDS FOR THE BENHAM GROUP IN MOUNTAIN VIEW CALIF IS ONE WHO EXPECTS RATES TO MOVE HIGHER I WOULD NOT FEEL COMFORTABLE ADDING DURATION AT THESE LEVELS HE SAYS DURATION IS A MEASURE OF PRICE SENSITIVITY TO INTEREST RATE CHANGES BASED ON THE CASH FLOW OF A BOND OR PORTFOLIO LONGERDATED SECURITIES TEND TO HAVE MORE DURATION THE TREASURY IS EXPECTED TO ANNOUNCE THE TERMS OF THE TWOYEAR AND FIVEYEAR NOTE AUCTIONS THIS AFTERNOON ECONOMISTS EXPECT A 165 BILLION TWOYEAR NOTE OFFERING AND AN 1125 BILLION FIVEYEAR NOTE SALE THAT WOULD MARK INCREASES IN BOTH ISSUES FROM THE SEPTEMBER AUCTIONS WHEN 16 BILLION OF TWOYEAR NOTES WERE SOLD AND 11 BILLION OF FIVEYEAR NOTES WERE SOLD MUNICIPAL BONDS WERE UNCHANGED TO 1/4 LOWER YESTERDAY DESPITE FURTHER PROFITTAKING AND THE PRICING OF MORE THAN 1 BILLION OF SECURITIES CONNECTICUT HEALTH AND EDUCATION FACILITIES AUTHORITY'S 5 OF 2023 REVENUE BONDS WERE UNCHANGED AT 97 TO 97 1/4 YIELDING 518 NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY'S 55 OF 2021 POWER SYSTEM REVENUE REFUNDING BONDS CLOSED 1/8 LOWER AT 98 1/2 TO 98 7/8 YIELDING 558 AMONG MAJOR NEW ISSUES WAS CHICAGO'S 643 MILLION 1993 SERIES AIRPORT REVENUE REFUNDING BONDS FOR O'HARE INTERNATIONAL AIRPORT MASSACHUSETTS' 200 MILLION CONSOLIDATED LOAN OF 1993 SERIES B GENERAL OBLIGATION BONDS WAS WON BY A GOLDMAN SACHS GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 4859 AND YIELDS FOR REOFFERED BONDS AT 365 IN 1997 TO 514 IN 2013 THE UNSOLD BALANCE WAS 1029 MILLION GOLDMAN SACHS SAID MORTGAGE SECURITIES FINISHED MOSTLY UNCHANGED YESTERDAY ERASING MILD MORNING LOSSES DURING THE EARLY BUYING SOME HIGHERCOUPON ISSUES FROM THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION APPEARED TO BE ENJOYING INTEREST FROM BARGAIN HUNTERS SCOOPING UP AN ISSUE THAT HAD BEEN BEATEN FOR SO LONG BUT TRADERS POINTED OUT THAT ONLY A FEW OF THOSE BONDS SUCH AS GINNIE MAE 8 1/2 SECURITIES TRADED HANDS SO THE PRICE MOVES MAY HAVE OVERSTATED THE STRENGTH OF THAT COUPON SECTOR GINNIE MAE 85 ISSUES WERE UP 1/32 AT 105 14/32 AND GINNIE MAE 9 ISSUES WERE UP 2/32 AT 106 8/32 9310200012 931020 ROSTENKOWSKI PROBE WIDENS TO INCLUDE MISSING RECORDS WASHINGTON THE JUSTICE DEPARTMENT'S INVESTIGATION OF REP DAN ROSTENKOWSKI'S DEALINGS WITH THE HOUSE POST OFFICE IS BEING EXPANDED ACCORDING TO A LAWENFORCEMENT OFFICIAL FAMILIAR WITH THE CASE THE DEPARTMENT NOW IS EXPECTED TO LOOK INTO THE RECENT DISCOVERY THAT CERTAIN PAYROLL RECORDS FROM MR ROSTENKOWSKI'S OFFICE ARE MISSING HOUSE SPEAKER THOMAS FOLEY HAS TOLD REPORTERS THAT THE MISSING DOCUMENTS CONTAINED INFORMATION ON HIRING AND SALARY CHANGES NOT PAYROLL IRREGULARITIES THE RECORDS ARE ACCESSIBLE BY COMPUTER FEDERAL INVESTIGATORS ARE ALSO SAID TO BE TRYING TO DETERMINE WHETHER REP ROSTENKOWSKI A CHICAGO DEMOCRAT HIRED GHOST EMPLOYEES IN HIS DISTRICT OFFICE THIS SUMMER THE FORMER HOUSE POSTMASTER PLEADED GUILTY TO EMBEZZLEMENT IN A CASHFORSTAMPS SCHEME HE HAS TOLD INVESTIGATORS THAT MR ROSTENKOWSKI ILLEGALLY CONVERTED STAMPS FROM THE POST OFFICE INTO CASH ACCORDING TO ANOTHER LAWENFORCEMENT OFFICIAL MR ROSTENKOWSKI HAS DENIED ANY WRONGDOING AN EXPANSION OF THE PROBE DOESN'T AUTOMATICALLY INCREASE THE CHANCES THAT MR ROSTENKOWSKI CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE WILL BE INDICTED BUT IT COULD HINDER HIS WORK ON CAPITOL HILL AS THE POSSIBILITY OF AN INDICTMENT REMAINS 9310200011 931020 DREYFUS SETTLES CHARGES OF MISLEADING ADVERTISING NEW YORK DREYFUS CORP HAS SETTLED CHARGES OF MISLEADING ADVERTISING BROUGHT BY THE NEW YORK CITY DEPARTMENT OF CONSUMER AFFAIRS SEPARATELY THE MUTUALFUND GROUP REPORTED THIRDQUARTER NET INCOME OF 247 MILLION OR 68 CENTS A SHARE UP 83 FROM 228 MILLION OR 61 CENTS A SHARE A YEAR EARLIER IN JULY THE CONSUMER AFFAIRS DEPARTMENT CHALLENGED DREYFUS OVER BROCHURES STATING THAT ITS GROWTH AND INCOME FUND DOESN'T INVEST IN HIGHYIELD JUNK BONDS THE AGENCY NOTED THAT THE FUND'S PROSPECTUS DOES ALLOW INVESTMENTS IN CONVERTIBLE DEBT SECURITIES RATED BELOW INVESTMENT GRADE THE DEPARTMENT ACCEPTED DREYFUS'S POSITION THAT CONVERTIBLE SECURITIES ARE NOT JUNK BONDS DREYFUS HOWEVER HAS AGREED TO MAKE A REFERENCE IN FUTURE BROCHURES TO THE FACT THAT THE FUND INVESTS IN BELOWINVESTMENTGRADE CONVERTIBLE SECURITIES DREYFUS IS THE LAST OF THREE FIRMS TO REACH AGREEMENTS WITH THE DEPARTMENT CONCERNING ALLEGED MISLEADING ADVERTISING FUND GROUP FRANKLIN RESOURCES INC AND DISCOUNT BROKER CHARLES SCHWAB & CO REACHED SETTLEMENTS IN RECENT WEEKS ON SIMILAR COMPLAINTS 9310200010 931020 ON THE BORDER CAFES MAY DEFER EXPANSION CITES ACCIDENT CLAIM DALLAS ON THE BORDER CAFES INC SAID IT MAY HAVE TO DEFER ITS EXPANSION PLANS FOR NEXT YEAR UNLESS IT RESOLVES PROMPTLY A CLAIM STEMMING FROM A MARCH 13 SMALLPLANE ACCIDENT THAT KILLED TWO PEOPLE AND INJURED THREE OTHERS STEPHEN D FENSTERMACHER CHIEF EXECUTIVE OFFICER OF THE RESTAURANT CHAIN DECLINED TO IDENTIFY THE CLAIMANT BUT ANOTHER PERSON AT THE COMPANY SAID JULIE SIMPSON WHO SUFFERED BROKEN RIBS AND VERTEBRAE AND LIVER INJURIES IN THE CRASH HAD NOTIFIED THE COMPANY OF HER INTENT TO CLAIM UNSPECIFIED DAMAGES NEITHER MRS SIMPSON NOR HER HUSBAND HANK THE COMPANY'S HUMAN RESOURCE DIRECTOR COULD BE REACHED FOR COMMENT THAT CRASH KILLED MICHAEL F FIORI THEN PRESIDENT AND CHIEF EXECUTIVE OF THE COMPANY ALONG WITH HIS SON WILLIAM THE PLANE'S PILOT AND INJURED THE THREE OTHER PASSENGERS ON BOARD MR FENSTERMACHER MRS SIMPSON AND DEE LIDVAL WIFE OF COMPANY PRESIDENT NED LIDVAL MR FENSTERMACHER SAID THE FIORI ESTATE AND THE OTHER PASSENGERS HAVE GIVEN ON THE BORDER RELEASES OF LIABILITY THE NATIONAL TRANSPORTATION SAFETY BOARD SAID IN PRELIMINARY FINDINGS THAT IT FOUND NO FUEL IN EITHER OF THE PLANE'S TANKS THE GROUP HAD BEEN FLYING FROM DALLAS FOR THE OPENING OF A RESTAURANT IN LAKEWOOD COLO WHEN THE PLANE CRASHED IN A POND SOUTH OF DENVER'S CENTENNIAL AIRPORT ON THE BORDER SAID THAT PLANS TO OPEN EIGHT RESTAURANTS NEXT YEAR MAY BE AFFECTED BECAUSE THE CLAIM IF NOT RESOLVED QUICKLY MAY LIMIT THE COMPANY'S ACCESS TO ITS CREDIT FACILITY AND LIMIT ITS ABILITY TO OBTAIN CAPITAL TO FUND THE EXPANSION ON THE BORDER SHARES DROPPED 375 CENTS OR 61 TO CLOSE AT 575 A SHARE IN OVERTHECOUNTER MARKET TRADING THE COMPANY SAID NET INCOME FOR ITS 12WEEK THIRD QUARTER ENDED SEPT 6 SLID 16 TO 307000 OR 10 CENTS A SHARE FROM 366000 OR 11 CENTS A SHARE A YEAR AGO EVEN AS REVENUE ROSE 34 TO 79 MILLION FROM 59 MILLION WITH THE OPENING OF THREE NEW RESTAURANTS THIS YEAR 9310200009 931020 CORPORATE FOCUS IBM TRIES TO GET MULTIMEDIA EFFORTS BACK ON TRACK AS PART OF STRUGGLE IT SEEKS HUGE PIECE OF BUSINESS WITH BELL ATLANTIC BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL LET THE REST OF THE WORLD WAX ON ABOUT HOW THE BELL ATLANTICTCI DEAL WILL PAVE THE ELECTRONIC HIGHWAY FOR IBM BELL ATLANTIC'S ASCENDANCY OFFERS A SHOT AT A POTENTIALLY HUGE PIECE OF BUSINESS AND THE CHANCE TO GET ITS OWN FALTERING MULTIMEDIA EFFORTS BACK ON TRACK INTERNATIONAL BUSINESS MACHINES CORP IS IN THE RUNNING FOR A BELL ATLANTIC CORP PROJECT FOR THOUSANDS OF VIDEO SERVERS THAT WILL BE USED IN THE FIRST MAJOR ROLLOUT OF NEWFANGLED SERVICES HOW IBM FARES COULD WELL TEST ITS ABILITY TO PLAY IN THIS NEW AGE MARKET IT HAS BEEN HAMPERED BY A FRAGMENTED APPROACH THAT HAS DIFFERENT DIVISIONS OFFERING RIVAL SOLUTIONS A SEEMINGLY WAVERING COMMITMENT TO MULTIMEDIA THAT EBBS AND FLOWS IN ITS INTENSITY AND AN ATTACHMENT TO OLDER TECHNOLOGY THAT IS MORE COSTLY IF IBM LANDS THE BUSINESS FROM BELL ATLANTIC IT MIGHT WELL GAIN AN INSIDE TRACK WITH THE ONE COMPANY THAT NOW SEEMS FAR AHEAD IN THE RACE TO DELIVER DOZENS OF NEW INTERACTIVE SERVICES TO MILLIONS OF HOUSEHOLDS THE FIRST STAGE IS FOR EQUIPMENT TO SERVE A PROJECTED 20000 HOMES IN THE ARLINGTON VA AREA BELL ATLANTIC THEN PLANS TO LINK UP WITH 110000 MORE HOMES IN FIVE OTHER CITIES WITH BELL ATLANTIC'S PACT LAST WEEK TO ACQUIRE THE NATION'S BIGGEST CABLE OPERATOR TELECOMMUNICATIONS INC WHICH REACHES MORE THAN 10 MILLION HOMES THE POTENTIAL FOR FUTURE BUSINESS IS ENORMOUS THE HARDWARE AND SOFTWARE USED IN THE INITIAL BELL ATLANTIC ROLLOUT MOREOVER COULD SET A STANDARD FOR SIMILAR SERVICES OFFERED UP BY THOSE WHO FOLLOW BELL ATLANTIC'S PATH LATER ON BEFORE IBM CAN MOVE INTO THE INTERACTIVE AGE HOWEVER IT MUST OVERCOME FASTER SMALLER RIVALS FROM SILICON VALLEY ITS MAIN COMPETITION FOR BELL ATLANTIC'S BENEFICENCE IS ORACLE CORP THE DATABASE SOFTWARE COMPANY WHICH CLAIMS IT CAN OFFER MORE POWERFUL FEATURES ON CHEAPER MASSIVELY PARALLEL COMPUTERS MADE BY NCUBE CORP BELL ATLANTIC OFFICIALS HOWEVER CAUTION THAT IT IS TOO EARLY TO SAY THE CONTEST COMES DOWN TO JUST IBM AND NCUBEORACLE ARTHUR BUSHKIN PRESIDENT OF BELL ATLANTIC'S INFORMATIONSERVICES UNIT SAYS THE COMPANY WILL NEED TO HIRE SUPPLIERS FOR MULTIPLE LAYERS OF SOFTWARE AND HARDWARE HE ADDS WE ARE IN CONVERSATIONS WITH ALL KINDS OF PEOPLE IT'S IN THE DOZENS ABOUT PROVIDING COMPONENTS OF THIS SYSTEM NOT JUST ONE OR TWO OR THREE OR SIX TWO YEARS AGO ARMONK NYBASED IBM LOOKED LIKE AN EARLY BIRD AND A MAJOR PLAYER IN MULTIMEDIA IT WAS IN MUCHPUBLICIZED TALKS WITH TIME WARNER INC FOR A SIGNIFICANT PARTNERSHIP LUCIE FJELDSTAD A HIGHPROFILE IBM VICE PRESIDENT WHO WAS LEADING THE TALKS WAS VISIBLY PUSHING HER COMPANY TOWARD PLAYING A CENTRAL ROLE IN SHAPING THE NEW WORLD BUT THE TALKS FIZZLED LAST MAY MS FJELDSTAD LEFT THE COMPANY AFTER REACHING THE OUTER LIMITS OF IBM'S INTEREST TWO MULTIMEDIA VENTURES SHE HAD STARTED UNDER THE IBM UMBRELLA DIGITAL DOMAIN AND FIREWORKS PARTNERS HAVEN'T MADE MUCH NEWS SINCE SHE LEFT I DON'T KNOW IF ANYBODY THINKS IBM IS SERIOUS MS FJELDSTAD SAYS NOW HAVING FORMED A CONSULTING FIRM THAT BEARS HER NAME IF THEY ARE I WISH THEM WELL MS FJELDSTAD WAS PUSHING IBM TO MOVE BEYOND MERELY MANUFACTURING HARDWARE FOR MULTIMEDIA AND BECOME PARTNERS WITH CONTENT COMPANIES TO PROVIDE MANY OF THE SERVICES OR CARS THAT WILL DRIVE DOWN THE INFORMATION HIGHWAY SINCE SHE QUIT IBM HAS DIVERGED FROM THAT PATH MS FJELDSTAT NOW SEES IBM AS MERELY ONE OF THE CEMENT MAKERS SHE SAYS PAUL LOFTUS IBM'S NEWLY APPOINTED GENERAL MANAGER FOR MULTIMEDIA SYSTEMS CONCEDES THE PATH LUCIE WAS MARCHING DOWN ISN'T ON THE FRONT BURNER HE SAYS IBM NOW IS INVOLVED MOSTLY IN TECHNOLOGY TALKS WITH POTENTIAL PARTNERS INCLUDING TIME WARNER THOUGH NOT FOR A MEGABUCKS DEAL THE SEVEN REGIONAL BELL COMPANIES CABLE OPERATORS AND TELECOMMUNICATIONS COMPANIES AROUND THE WORLD IBM ALREADY HAS A FOOT IN THE DOOR OF BELL ATLANTIC WHICH WILL PICK A SUPPLIER FOR ITS 20000HOME VIRGINIA ROLLOUT BY THE END OF THE YEAR THE PHILADELPHIABASED BELL COMPANY IS AN OLDLINE MAINFRAME CUSTOMER AND LIKES IBM'S RELIABILITY SIX MONTHS AGO IBM DIDN'T LOOK LIKE A VIABLE CONTENDER FOR BELL ATLANTIC'S BUSINESS SAYS JOHN SEAZHOLTZ DIRECTOR OF TECHNOLGY FOR BELL ATLANTIC BUT RECENTLY IBM EXECUTIVES HAVE FOCUSED THEMSELVES KNOCKING DOWN BARRIERS TO LET DIFFERENT DIVISIONS WORK TOGETHER BETTER AND SHORING UP ACCOUNTABILITY TO THE CUSTOMER HE SAYS THEY'RE NOT OUT OF THE RUNNING FOR THE BELL ATLANTIC BUSINESS MR SEAZHOLTZ ADDS BUT MARKETING AND CUSTOMER RELATIONS HAD ALWAYS BEEN THE OLD IBM'S STRENGTHS TECHNOLOGY IS ANOTHER MATTER THE VIDEO SERVERS THAT ORACLE AND NCUBE WANT TO DELIVER TO BELL ATLANTIC WILL COST 500 PER VIDEO STREAM THE CHANNEL FOR SENDING OUT A SINGLE VIDEO PACKAGE AT A TIME ONETENTH THE COST OF IBM'S PROPOSAL SAYS NCUBE PRESIDENT MICHAEL MEIRER WITHIN TWO YEARS MR MEIRER SAYS HE CAN LOWER THE COST TO ABOUT 100 FOR EACH VIDEO STREAM IBM'S APPROACH IN THE BELL ATLANTIC BID IS BASED ON ITS RS6000 LINE OF ENGINEERING WORK STATIONS THAT MIGHT BE FINE ORACLE'S MR GARNETT CONTENDS IF YOU'RE GOING TO COBBLE IT TOGETHER AND DO MAYBE A THOUSAND HOMES BUT FOR A BIG BUSINESS WITH HUNDREDS OF THOUSANDS OF HOMES THE WHEELS ARE GOING TO COME OFF THE WAGON IT JUST ISN'T GOING TO WORK THE ORACLENCUBE SYSTEM USES MASSIVELY PARALLEL ARRAYS OF COMPUTER CHIPS THAT CAN BE EASILY EXPANDED AT LITTLE EXTRA COST ORACLE SOFTWARE NOW RUNS ON AN NCUBE SYSTEM AT A DUTCH BANK THAT LASHES TOGETHER 256 MICROPROCESSORS THE EQUIVALENT OF THREE OR FOUR MAINFRAMES IN POWER AND IS CONCEPTUALLY THE SAME AS WHAT MIGHT BE NEEDED IN AN INTERACTIVE NETWORK MR GARNETT SAYS IBM WOULDN'T COMMENT ON PRICE COMPARISONS OR DISCLOSE THE COST OF ITS PROPOSAL EVEN WITHIN IBM THERE ISN'T YET A CONSENSUS ON WHAT KIND OF MACHINES WILL WORK BEST FOR THE INTERACTIVE ERA IBM IS PURSUING A SOMETIMES CONTRADICTORY THREETRACK STRATEGY ONE EFFORT IS BASED ON THE RS6000 LINE USED IN THE BELL ATLANTIC BID ANOTHER SEEKS TO REVIVE IBM'S AILING MAINFRAME BUSINESS BY TURNING MAINFRAMES INTO BIG SERVERS AND THE NEWEST EFFORT IS BASED ON IBM'S OWN BRAND OF HIGHLY PARALLEL SYSTEMS WHICH ARE JUST TAKING SHAPE IBM'S MR LOFTUS SAYS THE RIGHT APPROACH IS TO LET CUSTOMERS DECIDE WHAT WORKS BEST FOR THEM BUT THAT MAY FORCE CLIENTS TO CHOOSE AMONG DIFFERENT IBM TEAMS PLYING DIVERGENT VIEWS AT BELL ATLANTIC MR SEAZHOLTZ DOESN'T LIKE MAINFRAMES FOR THE JOB BECAUSE THEY CAN'T BE SCALED UP TO ACCOMMODATE THE INCREASING NUMBER OF HOUSEHOLDS THAT COMPANIES LIKE HIS WILL WANT TO SERVE MAINFRAMES AREN'T RELEVANT FOR THIS KIND OF ACTIVITY MR SEAZHOLTZ AVERS YET IN IBM'S MAINFRAME DIVISION ROBERT STEEN DIRECTOR OF CLIENTSERVER SOLUTIONS INSISTS VIDEOONDEMAND IS AN INCREDIBLE APPLICATION TAILORMADE FOR MAINFRAMES BIG BLUE MAINFRAMES ARE INVOLVED IN A VIDEO TEST AT AMERITECH THE CHICAGOBASED BELL COMPANY IBM ALSO HAS PUT MAINFRAMES IN VIDEOONDEMAND MODELS THAT WILL BE EXHIBITED IN DECEMBER BY CABLE LABS THE RESEARCH GROUP FOR CABLETELEVISION COMPANIES THE CONVENTIONAL WISDOM HERE SAYS THE OPPORTUNITY IS BILLIONS IBM'S MR LOFTUS SAYS IBM INTENDS TO BE A MAJOR PLAYER NORTHERN VIRGINIA MARKET PROJECTION OF UP TO 20000 HOUSEHOLDS TO RECEIVE COMMERCIAL VIDEOONDEMAND SERVICE STARTING IN SECOND HALF OF 1994 WILL FILE FOR FCC APPROVAL DOVER TOWNSHIP NJ 38000 HOUSEHOLDS AWAITING FCC APPROVAL MADISON FLORHAM PARK CHATHAM NJ 12000 HOUSEHOLDS AWAITING FCC GOAHEAD ALEXANDRIA VA 60000 CUSTOMERS PLANS TO FILE FOR FCC APPROVAL 9310200008 931020 ECONOMY WHITE HOUSE OUTLINES TAXES FOR NAFTA SIGNALING PROPOSAL IS OPEN TO CHANGE BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION LAID OUT ITS POLITICALLY UNPOPULAR PLAN TO RAISE ABOUT 25 BILLION IN TAXES AND CUSTOMS FEES AS PART OF THE NORTH AMERICAN FREE TRADE AGREEMENT EVEN AS PRESIDENT CLINTON AND OTHERS SIGNALED THAT THE PROPOSAL COULD STILL CHANGE IN TESTIMONY YESTERDAY BEFORE THE HOUSE WAYS AND MEANS COMMITTEE US TRADE REPRESENTATIVE MICKEY KANTOR SAID THE ADMINISTRATION PLANS TO DOUBLE VARIOUS FEES AND TAXES CALLING THE IDEA THE BEST OPTION OF VERY BAD OPTIONS MR KANTOR SAID THE PLAN WOULD RAISE THE INTERNATIONAL AIRLINE AND CRUISE TAX FOR PASSENGERS TO 10 FROM 5 THE CUSTOMS FEE FOR COMMERCIAL VEHICLES OR TRUCKS CROSSING US BORDERS TO 10 FROM 5 AND THE CUSTOMS FEE FOR TRAINS TO 15 FROM 750 THE ADMINISTRATION ARGUES THAT THE EXTRA MONEY IS NEEDED TO OFFSET REVENUE THE US WILL LOSE AS THE FREETRADE PACT REDUCES TARIFFS AMONG THE US CANADA AND MEXICO UNDER ONE ADMINISTRATION ESTIMATE THE US NEEDS TO RAISE 235 BILLION FOR THE LOST TARIFFS OVER FIVE YEARS WITH ADDITIONAL DOLLARS NEEDED TO COVER WORKER RETRAINING AND CLEANUP PROJECTS ALONG THE USMEXICO BORDER BUT THE PROPOSAL HAS STIRRED UP ANTAGONISM FROM LAWMAKERS PARTICULARLY REPUBLICANS WHOSE SUPPORT IS CRUCIAL FOR CONGRESSIONAL APPROVAL OF THE TRADE PACT HOUSE MINORITY WHIP NEWT GINGRICH OF GEORGIA AND 26 OTHER REPUBLICANS SENT MR CLINTON A LETTER MONDAY SAYING THAT THEY CAN'T SUPPORT A NAFTA THAT INVOLVES TAX INCREASES AFTER A WHITE HOUSE MEETING WITH DEMOCRATIC AND REPUBLICAN LAWMAKERS OVER NAFTA MR CLINTON YESTERDAY ACKNOWLEDGED THERE ARE STILL SOME PRACTICAL THINGS TO WORK OUT DURING HIS TESTIMONY MR KANTOR GAVE THE ADMINISTRATION ROOM TO WIGGLE SAYING THE FINANCING PLAN WASN'T FINAL AFTER TESTIFYING LATER ON CAPITOL HILL TREASURY SECRETARY LLOYD BENTSEN SAID THE ADMINISTRATION IS VERY HAPPY TO LISTEN TO OTHER PROPOSALS AND EXPLORE OTHER OPTIONS WHITE HOUSE SPOKESWOMAN DEE DEE MYERS NOTED TOO THAT THE PRESIDENT IS CERTAINLY OPEN TO SUGGESTIONS FROM REPUBLICANS OR DEMOCRATIC MEMBERS OF CONGRESS IF THEY HAVE A BETTER WAY STILL THE ADMINISTRATION STUCK TO ITS THEME THAT IT NEEDS TO GET MONEY FROM SOMEWHERE THERE IS NO FREE LUNCH IN THIS DEAL MR BENTSEN SAID UNDER FEDERAL LAW ANY LOSSES IN TAXES OR TARIFFS FROM NAFTA HAVE TO BE REPLACED BY NEW REVENUES OR BY SPENDING CUTS THE ACTION COMES AS NAFTA MOVED FORWARD ON CAPITOL HILL MEMBERS OF THE HOUSE WAYS AND MEANS COMMITTEE THE MAIN HOUSE COMMITTEE OVERSEEING NAFTA YESTERDAY PRESENTED AMENDMENTS TO THE LEGISLATION THAT INSTRUCTS THE ADMINISTRATION ON HOW TO CARRY OUT THE TRADE ACCORD LAWMAKERS ATTEMPTED TO GET ASSURANCES FOR PROTECTION OR BENEFITS FOR SPECIALINTEREST AREAS SUCH FLAT GLASS BOX SPRINGS SMALL APPLIANCES SUGAR PERISHABLE AGRICULTURAL PRODUCTS AND INTELLECTUAL PROPERTY RIGHTS MR KANTOR RESPONDED POLITELY SAYING THE ADMINISTRATION WOULD TRY TO ACCELERATE THE REDUCTION OF MEXICAN TARIFFS IN MANY OF THE INDUSTRIES MENTIONED ALSO YESTERDAY TREASURY SECRETARY BENTSEN AND ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR CAROL BROWNER SPELLED OUT THE ADMINISTRATION'S PLANS FOR CLEANUPS ALONG THE USMEXICO BORDER A CONTENTIOUS ISSUE AMONG ENVIRONMENTALISTS WHO FEAR INCREASED NAFTARELATED MANUFACTURING WILL MUCK UP BORDER AREAS MR BENTSEN CONFIRMED DETAILS OF A ROUGHLY 8 BILLION PROGRAM TO FINANCE THE CLEANUP ABOUT 54 BILLION WOULD COME FROM LOAN GUARANTEES AND GRANTS FROM THE US MEXICO AND MULTILATERAL SOURCES SUCH AS THE WORLD BANK TO GET THE REST OF THE MONEY MR BENTSEN SAID THE US AND MEXICO WOULD CAPITALIZE A NEW DEVELOPMENT BANK WITH 450 MILLION EQUALLY SPLIT BY THE TWO COUNTRIES OVER FOUR YEARS THAT AMOUNT IS SLIGHTLY LESS THAN THE 500 MILLION THE TWO SIDES HAD BEEN CONSIDERING THE BANK WOULD THEN BORROW A PROJECTED 2 BILLION FROM THE INTERNATIONAL CAPITAL MARKETS AND MR BENTSEN SAID THAT COULD GROW TO 3 BILLION AS PART OF THE ENVIRONMENTAL AGREEMENT THE US AND MEXICO WOULD SET UP A JOINT COMMISSION TO OVERSEE THE CLEANUP WITH PROJECTS SUCH AS SEWAGETREATMENT PLANTS AND WATERPURIFICATION SYSTEMS THE WHITE HOUSE AND CONGRESSIONAL LEADERS ARE TRYING TO HAMMER OUT IMPLEMENTING LEGISLATION FOR NAFTA BY NOV 1 9310200007 931020 TREASURY PLANS TO RAISE 363 BILLION IN CASH WASHINGTON THE TREASURY PLANS TO RAISE 363 BILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 26 BILLION IN SHORTTERM BILLS TO REDEEM 2238 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON JAN 27 1994 AND APRIL 28 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794H64 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794K37 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9310200006 931020 MARKETING & MEDIA TIME WARNER INC NET LOSS NARROWED IN THIRD QUARTER BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC'S NET LOSS NARROWED IN THE THIRD QUARTER WHILE ITS OPERATING PROFIT ROSE 8 ON APPROXIMATELY A 6 INCREASE IN REVENUE SEPARATELY THE COMPANY NAMED SEVERAL EXECUTIVES TO POSTS AT TIME WARNER COMMUNICATIONS A RECENTLY CREATED UNIT THAT PROVIDES TELECOMMUNICATIONS SERVICES INCLUDING LONGDISTANCE CONNECTIONS THE ENTERTAINMENT CABLE AND PUBLISHING COMPANY POSTED A LOSS OF 136 MILLION OR 36 CENTS A SHARE COMPARED WITH THE YEAREARLIER LOSS OF 152 MILLION OR 41 CENTS A SHARE THE LATEST LOSS INCLUDED A ONETIME CHARGE OF 70 MILLION RELATED TO DEFERRED TAXES AND AN EXTRAORDINARY LOSS RELATED TO A RETIREMENT OF 22 MILLION OF DEBT THIRDQUARTER REVENUE ROSE TO 37 BILLION FROM 35 BILLION WITH EACH OF FIVE BUSINESS GROUPS POSTING GAINS TIME WARNER'S OPERATING PROFIT OR EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION JUMPED TO 726 MILLION FROM THE YEAREARLIER 675 MILLION IN THE PUBLISHING DIVISION WHICH INCLUDES MAGAZINES AND BOOKS OPERATING PROFIT INCHED UP TO 65 MILLION FROM 64 MILLION DESPITE CONTINUING WEAKNESS IN ADVERTISING REVENUE THE WARNER MUSIC GROUP SHOWED AN 82 GAIN IN OPERATING PROFIT TO 132 MILLION REFLECTING INCREASES IN RECORDED MUSIC SALES IN THE US AND HIGHER REVENUE FROM WORLDWIDE MUSIC PUBLISHING THE COMPANY SAID LEAD BY THE BOXOFFICE PERFORMANCE OF THE FUGITIVE AND FREE WILLY THE WARNER BROS STUDIO OPERATIONS POSTED RECORD OPERATING PROFIT OF 204 MILLION UP 10 FROM THE RESTATED YEAREARLIER 185 MILLION THE HOME BOX OFFICE GROUP HAD OPERATING PROFIT OF 57 MILLION UP 56 FROM A YEAREARLIER 54 MILLION OPERATING PROFIT AT TIME WARNER CABLE ROSE 72 TO A RECORD 268 MILLION FROM 250 MILLION LARGELY REFLECTING AN INCREASE IN SUBSCRIBERS AS WELL AS CONTINUED GAINS IN ADVERTISING AND PAYPERVIEW REVENUE IN THE FIRST NINE MONTHS THE NET LOSS NARROWED TO 343 MILLION OR 92 CENTS A SHARE FROM THE YEAREARLIER 449 MILLION OR 121 A SHARE OPERATING PROFIT ROSE ABOUT 10 TO 207 BILLION FROM 189 BILLION REVENUE TOTALED 104 BILLION UP 61 FROM 98 BILLION 9310200005 931020 WHO'S NEWS BALTIMORE GAS & ELECTRIC CO BALTIMORE GAS & ELECTRIC CO BALTIMORE JAMES R CURTISS A FORMER MEMBER OF THE NUCLEAR REGULATORY COMMISSION WAS ELECTED TO THE BOARD OF THIS UTILITY HOLDING COMPANY EFFECTIVE JANUARY 1994 MR CURTISS A PARTNER WITH THE WASHINGTON LAW FIRM WINSTON & STRAWN IS EXPECTED TO SERVE ON THE BOARD'S COMMITTEE ON NUCLEAR POWER 9310200004 931020 FOOD IN AUSTRALIA US FASTFOOD FIRMS SLOW DOWN BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL IMAGES OF AUSTRALIA CORAL REEFS KOALA BEARS KANGAROOS AND US FAST FOOD THE HEARTY APPETITE OF AUSTRALIA'S 18 MILLION RESIDENTS FOR BURGERS PIZZA AND THE LIKE HAS TURNED THE COUNTRY INTO A SHOWCASE FOR THE REWARDS AND PITFALLS THAT AWAIT AMERICAN FASTFOOD CHAINS AS THEY EXPAND OVERSEAS ON THE ONE HAND THE TYPICAL AUSTRALIAN SPENDS ABOUT US1550 EACH WEEK ON FAST FOOD OR ABOUT 20 MORE THAN THE AVERAGE AMERICAN THAT FACT HAS HELPED MAKE THE COUNTRY A MAGNET FOR US FASTFOOD CONCERNS PEPSICO INC'S KFC SUBSIDIARY NOW GETS MORE THAN 50 OF ITS INTERNATIONAL PROFITS FROM AUSTRALIA ALONE SIZZLER INTERNATIONAL INC GETS 90 AT THE SAME TIME A SLUGGISH ECONOMY INCLUDING AN UNEMPLOYMENT RATE OF 11 MEANS CONSUMERS ARE MORE CAUTIOUS ABOUT DISCRETIONARY SPENDING AND CHOOSIER ABOUT WHERE THEY DINE IN THE SECOND QUARTER OF THIS YEAR PEPSICO'S KFC AND PIZZA HUT UNITS EACH REPORTED A 15 DROP IN WORLDWIDE PROFITS PARTIALLY ATTRIBUTED TO WEAKNESS IN THE LAND DOWN UNDER AS A RESULT US FASTFOOD COMPANIES ARE TRYING TO REGAIN MOMENTUM IN A MARKET WHERE DOUBLEDIGIT GROWTH WAS LONG CONSIDERED A GIVEN KFC IS EXPANDING ITS DELIVERY SERVICE PIZZA HUT HAS INTRODUCED SPICY ASIAN SAUCES FOR ITS PIES SIZZLER IS OFFERING A SENIORCITIZEN DISCOUNT A RARITY IN AUSTRALIA AND IS INCLUDING AUSTRALIAN FAVORITES LIKE PUMPKIN SOUP ON ITS MENUS WHAT WE'RE RECOGNIZING NOW IS THAT WE HAVE TO DO BUSINESS IN A FUNDAMENTALLY DIFFERENT WAY SAYS JOHN WENDLER KFC'S VICE PRESIDENT OF INTERNATIONAL MARKETING IT'S GOT TO BE EVERYDAY VALUE AS OPPOSED TO JUST DISCOUNTING FOR 30 DAYS AS THE US BECOMES SATURATED WITH FASTFOOD OUTLETS THE INTERNATIONAL ARENA HAS BECOME INCREASINGLY IMPORTANT TO AMERICAN RESTAURANT CHAINS MCDONALD'S CORP FOR INSTANCE NOW RECEIVES 40 OF ITS SALES FROM OVERSEAS OPERATIONS WHEN US CHAINS FIRST ARRIVED IN AUSTRALIA IN THE 1970S COMPETITORS WERE FEW AND THE AMERICANS HAD THE RESOURCES TO RIDE OUT ECONOMIC STORMS TODAY US FASTFOOD COMPANIES FIND THEMSELVES COMPETING AGAINST A HOST OF SMALL AUSTRALIABASED CHAINS AND WELLENTRENCHED INDEPENDENT OPERATORS AN EXAMPLE OF THE CHANGED CLIMATE CAN BE SEEN IN THE CASE OF KFC WHICH HISTORICALLY RAISED PRICES IN AUSTRALIA ANNUALLY ONE RECENT KFC PROMOTION FEATURED A VALUE FAMILY PACK FOR US14 KFC ISN'T PERCEIVED AS BEING CHEAP FOOD HERE SAYS NEIL SHOEBRIDGE A WRITER FOR AN AUSTRALIAN BUSINESS PUBLICATION MANY AUSTRALIANS HE SAYS PREFER TO PATRONIZE TAKEAWAY READ TAKEOUT BARBECUECHICKEN SHOPS KFC'S MR WENDLER ACKNOWLEDGES THAT THE CHAIN'S MENU IS NOW FULLY PRICED ONE WAY THE COMPANY IS SHAVING ITS OWN COSTS IS TO CHANGE THE WAY IT BUYS POULTRY UNLIKE IN THE US KFC IN AUSTRALIA DOES A BIG BUSINESS FULLY 25 OF ITS SALES IN CHICKEN SANDWICHES PREVIOUSLY KFC BOUGHT SANDWICH CHICKEN AND FRYING CHICKEN NOW THE COMPANY USES A DIFFERENT METHOD OF CUTTING THE POULTRY SO IT CAN GET BOTH SANDWICH MEAT AND FRYING PIECES FROM THE SAME BIRD KFC IS ALSO TESTING HOME DELIVERY IN TWO RESTAURANTS AND PLANS TO EXPAND THAT SERVICE TO AN ADDITIONAL 20 STORES IN THE SYDNEY SUBURBS IN THE US KFC IS TESTING HOME DELIVERY IN JUST ONE MARKET LAS VEGAS WHILE LOWER PRICES AND IMPROVED SERVICE MIGHT HELP KFC AND OTHERS CHANGES IN MENUS ARE NEEDED AS WELL ACCORDING TO INDUSTRY OBSERVERS ED ENGORON PRESIDENT OF PERSPECTIVES/THE CONSULTING GROUP IN LOS ANGELES A COMPANY THAT ADVISES THE FOODSERVICES INDUSTRY ON INTERNATIONAL MARKETS SAYS THAT SOME US CONCERNS WOULD DO WELL TO ADAPT LOCAL FOODS TO THEIR OWN PARTICULAR MENUS SOME CHAINS ARE ALREADY TAKING THE ADVICE KFC IS EXPERIMENTING WITH A SMORGASBAR A DELI CASE FILLED WITH SIDE ITEMS LIKE PEAS AND GRAVY AN AUSTRALIAN FAVORITE PIZZA HUT WHICH HAS THE LARGEST PRESENCE OF ANY US CHAIN WITH 440 LOCATIONS IS OFFERING BARBECUE AND ASIAN SAUCES NEITHER OF WHICH IS AVAILABLE IN THE US THE COMPANY ALSO OFFERS ALLYOUCANEAT DESSERT BARS WHICH AREN'T AVAILABLE IN THE US MCDONALD'S WHICH HAS 370 RESTAURANTS ON THE CONTINENT IS THE ONLY US CHAIN THAT ISN'T STRAYING FROM ITS FORMULA HAMBURGERS AND FRIES THROUGH ITS EXTRAVALUE MEALS THE CHAIN HAS DONE A BETTER JOB THAN COMPETITORS WHEN IT COMES TO PRICING SAYS ANDREW HIPSLEY VICE PRESIDENT AND DIRECTOR OF MARKETING FOR MCDONALD'S AUSTRALIAN OPERATION THE ONE EXPERIMENT MCDONALD'S DID TRY FLOPPED A TAKEOUT SALAD THE PREPACKAGED GREENS SAYS MR HIPSLEY WERE SHELVED BECAUSE OF POOR SALES IT'S DIFFICULT TO MAKE A SALAD THAT IS DIFFERENT FROM WHAT YOU COULD GET ELSEWHERE MR HIPSLEY SAYS NO MATTER HOW HEALTHY IT'S GOING TO BE TASTE IS ONE OF THE KEY THINGS 9310200003 931020 WHO'S NEWS VESTAR INC VESTAR INC SAN DIMAS CALIF JANE L DELGADO WAS ELECTED A DIRECTOR OF THIS MAKER OF PHARMACEUTICALS FOR TREATING PATIENTS WITH CANCER AND SERIOUS INFECTIONS DR DELGADO 40 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE NATIONAL COALITION OF HISPANIC HEALTH AND HUMAN SERVICES ORGANIZATIONS SHE SUCCEEDS ROGER KENNEDY 67 WHO RESIGNED 9310200002 931020 WHO'S NEWS FLEMING COS GIVES STAUTH ADDED POST OF CHIEF EXECUTIVE OKLAHOMA CITY ROBERT E STAUTH 49 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF FLEMING COS SUCCEEDING E DEAN WERRIES 64 WHO WILL REMAIN CHAIRMAN THE ANNOUNCEMENT CAME AS THE WHOLESALE FOOD DISTRIBUTOR SAID EARNINGS IN THE THIRD QUARTER ENDED OCT 2 FELL 11 TO 203 MILLION OR 55 CENTS A SHARE FROM 228 MILLION OR 64 CENTS A SHARE A YEAR EARLIER BELOW MOST ANALYSTS' ESTIMATES SALES ROSE SLIGHTLY TO 294 BILLION FROM 293 BILLION SEVERAL ANALYSTS SAID THE COMPANY HAS STRUGGLED IN A HIGHLY COMPETITIVE WHOLESALING ENVIRONMENT MR STAUTH WHO WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER LAST MARCH AND WILL RETAIN THOSE POSTS WAS WIDELY EXPECTED TO SUCCEED MR WERRIES WHO HAS BEEN CHIEF EXECUTIVE SINCE 1988 BUT THE TIMING OF THE CHANGE SURPRISED ANALYSTS SINCE THE COMPANY SAID EARLIER THIS YEAR THAT MR WERRIES DIDN'T PLAN TO STEP DOWN SOON YESTERDAY HOWEVER MR WERRIES SAID THE COMPANY HAD PLANNED THIS SUCCESSION BEFORE LAST MARCH HE ALSO SAID THAT HIS DECISION TO STEP DOWN AS CEO WASN'T CONNECTED TO THE COMPANY'S PERFORMANCE THE COMPANY SAID ITS EARNINGS IN THE FISCAL QUARTER WERE HURT BY THE RETROACTIVE IMPACT OF NEW FEDERAL TAX LEGISLATION WHICH TRIMMED EARNINGS FOR THE QUARTER BY 2 MILLION OR SIX CENTS A SHARE ANALYSTS WERE GENERALLY BULLISH ABOUT MR STAUTH THE LONGTIME FLEMING EXECUTIVE ESTABLISHED A STRONG TRACK RECORD HEADING OPERATIONS IN THE COMPANY'S WESTERN REGION AMONG OTHER OPERATIONAL DUTIES OVER THE YEARS NOTED HERBERT C BUCHBINDER AN ANALYST FOR KIDDER PEABODY & CO MR WERRIES SAID MR STAUTH HAS STRONG IDEAS ABOUT HOW TO USE INFORMATION TECHNOLOGY TO IMPROVE PERFORMANCE AT THE COMPANY FLEMING STOCK ROSE 125 CENTS OR 04 TO CLOSE AT 33 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9310200001 931020 TECHNOLOGY HEALTHCARE STUDY FINDS RESTRICTIONS ACCEPTABLE ATLANTA ONE OF THE LARGEST STUDIES OF CONSUMER ATTITUDES TOWARD HEALTH CARE INDICATES INDIVIDUALS ARE WILLING TO ACCEPT RESTRICTIONS ON TREATMENT IN RETURN FOR A SYSTEM THAT'S ACCESSIBLE TO ALL GEORGIA HEALTH DECISIONS A NONPROFIT GROUP YESTERDAY PUBLISHED THE RESULTS OF A TWOYEAR STUDY OF MORE THAN 6000 STATE RESIDENTS THAT INCLUDED 257 COMMUNITY FORUMS ACROSS GEORGIA THE SURVEY FOUND THAT INDIVIDUALS ARE WILLING TO WAIT FOR ROUTINE CARE AND DIAGNOSTIC PROCEDURES TO ACCEPT CAPS ON MALPRACTICE AWARDS TO MEET FIRST WITH NURSE PRACTITIONERS OR PHYSICIAN ASSISTANTS BEFORE SEEING A DOCTOR FOR ROUTINE CARE AND TO ACCEPT THAT A HOSPITAL MAY NOT BE AVAILABLE IN EVERY COMMUNITY AT THE SAME TIME THOSE SURVEYED SAID THAT SUCH TRADEOFFS WOULD BE ACCEPTABLE ONLY IF COMPREHENSIVE CARE AT A FAIR PRICE WAS MADE AVAILABLE TO ALL WHILE GEORGIA HEALTH DECISIONS DIDN'T PROVIDE SPECIFIC FIGURES ON THE LIMITATIONS THAT CONSUMERS MIGHT BE WILLING TO ACCEPT THE SURVEY SHOULD HELP PROVIDE LEGISLATORS WITH A ROADMAP TO REFORM IN GEORGIA SAID BEVERLY TYLER THE GROUP'S EXECUTIVE DIRECTOR 9310200043 930927 A MOCKERY OF JUSTICE ON CAMPUS BY SCOTT GOTTLIEB WITH THE DAWN OF A NEW ACADEMIC YEAR COLLEGE STUDENTS AND THEIR PARENTS SHOULD TAKE NOTE OF A DISTURBING TREND AFFLICTING AMERICA'S INSTITUTIONS OF HIGHER LEARNING THE RISE OF POWERFUL STUDENT JUDICIAL BOARDS THE BOARDS OFTEN JOINTLY RUN BY STUDENTS AND A SMATTERING OF WILLING FACULTY MEMBERS ARE CHARGED WITH METING OUT EVERYTHING FROM WHINY DISPUTES BETWEEN STUDENTS AND INFRACTIONS OF SPEECH CODES TO ALLEGATIONS OF CRIMINAL BATTERY AND DATE RAPE THEY ARE GIVEN CONSIDERABLE LICENSE TO DETERMINE GUILT OR INNOCENCE AND HAVE NO OBLIGATION TO RECOGNIZE US CIVIL PROCEDURES OR LEGAL TRADITIONS BUT MOST TROUBLING IS THAT STUDENT JUDICIARY BOARDS ARE RAPIDLY TURNING INTO NEW FRONT GROUPS AS CAMPUS RADICALS FIGHT THE BACKLASH AGAINST POLITICAL CORRECTNESS AT MY SCHOOL WESLEYAN UNIVERSITY A PANEL OF SEVEN STUDENTS THE STUDENT JUDICIARY BOARD PROMISES TO HEAR ALL CHARGES BROUGHT BEFORE IT THE BOARD DELIBERATES IN SECRET PROVIDES NO EXPLANATION OF WHY IT REACHED A PARTICULAR DECISION AND DOLES OUT PUNISHMENTS RANGING FROM LETTERS OF REPRIMAND TO EXPULSION AS AT MOST SCHOOLS FEW STUDENTS AT WESLEYAN MYSELF INCLUDED HAVE FAITH IN THE STUDENTRUN BOARD I'M NOT SURE IF ANYONE EVER DID STUDENTS ARE TERRIFIED TO APPEAR BEFORE THE BOARD PAYING CLOSE ATTENTION TO THEIR OWN ACTIONS LEST ONE FALSE MOVE LAND THEM BEFORE THE SJB LAST YEAR WHILE EDITOR OF THE WESLEYAN STUDENT NEWSPAPER I WAS BROUGHT BEFORE THE JUDICIAL BOARD ON TRUMPEDUP CHARGES STEMMING FROM AN INVESTIGATION MY NEWSPAPER MADE OF A CULT OPERATING ON THE WESLEYAN CAMPUS THE CHARGES COMING JUST SEVERAL MONTHS AFTER MY NEWSPAPER EXPOSED THE CULT IN A SERIES OF FRONTPAGE ARTICLES WERE NOT SUPPORTED BY THE SJB BUT MY EXONERATION CAME ONLY AFTER A PROTRACTED INVESTIGATION AND A LENGTHY HEARING THE CURRENT CRISIS IN CONFIDENCE AT WESLEYAN CAN ALSO BE TRACED BACK TO LAST YEAR WHEN A PROFESSOR CHARGED THAT A WESLEYAN STUDENT STOLE HER WALLET THE EVIDENCE SHE CLAIMED TO HAVE SEEN THIS STUDENT SNEAKING AROUND THE WOMEN'S LOCKER ROOM THE LOCAL POLICE INVESTIGATED BRIEFLY BUT LACKING EVIDENCE THEY DECIDED TO DROP THE INVESTIGATION THE SJB HOWEVER DECIDED TO HOLD A HEARING ON THE MATTER THE EVIDENCE IN THE MOCK TRIAL WAS SCANT THE TESTIMONY FROM THE WALLETLESS PROFESSOR THE REST WAS CIRCUMSTANTIAL AS WELL THE STUDENT WAS SEEN RETURNING ATHLETIC GEAR NEAR THE LOCKER ROOM AROUND THE TIME OF THE THEFT BUT DESPITE THE FLIMSY EVIDENCE THE ACCUSED WAS FOUND GUILTY AND JUST WEEKS AWAY FROM GRADUATION WAS SUSPENDED FOR ONE ACADEMIC YEAR THE SENTENCE WAS EVENTUALLY OVERTURNED BUT ONLY AFTER THE PROFESSOR RECANTED HER TESTIMONY AND THE SCHOOL PRESIDENT INTERVENED THERE HAVE ALSO BEEN A NUMBER OF CASES WHERE STUDENTS WERE GIVEN PUNISHMENTS THAT IN NO WAY APPROXIMATED THE SERIOUSNESS OF THEIR OFFENSES AT WILLIAMS COLLEGE THIS SPRING A MALE STUDENT LEFT A MESSAGE ON THE TELEPHONE ANSWERING MACHINE OF A FELLOW MALE STUDENT WITH WHOM HE HAD A DISPUTE IN THE MESSAGE THE STUDENT TRIED TO PROVOKE HIS ADVERSARY BY PRETENDING HE WAS A WELLKNOWN GAY STUDENT AND SAYING HE WANTED TO GO ON A DATE WITH THE STUDENT WHO OWNED THE ANSWERING MACHINE AND ENGAGE IN HOMOSEXUAL ACTIVITY WHEN CONFRONTED ABOUT THE MESSAGE THE STUDENT ADMITTED HIS ROLE IN THE MATTER AND APOLOGIZED BUT ACCORDING TO WILLIAMS'S JUDICIAL CODES THE CALLER HAD VIOLATED A RULE BARRING OFFENSIVE SPEECH AND WAS SUSPENDED FOR AN ENTIRE ACADEMIC YEAR AN APPEAL OF THE RULING WAS DENIED THERE WAS A SIMILAR INJUSTICE PERPETRATED AT BROWN UNIVERSITY THIS SPRING WHERE A MALE SOPHOMORE WAS ACCUSED OF STEALING FOOD FROM A CAMPUS EATERY BY A FEMALE STUDENT AFTER RETURNING TO HIS ROOM IN A DRUNKEN STATE THAT NIGHT THE STUDENT LEFT THREE VULGAR MESSAGES ON THE WOMAN'S ANSWERING MACHINE HE LATER HAD NO RECOLLECTION OF THE CONTENT OF THE MESSAGES OWING TO HIS INEBRIATION THE BROWN JUDICIARY COMMITTEE COMPRISING EQUAL NUMBERS OF STUDENTS FACULTY AND ADMINISTRATORS FOUND THE STUDENT GUILTY OF BEHAVIOR WHICH SHOWS FLAGRANT DISRESPECT FOR THE WELLBEING OF OTHERS THE PUNISHMENT FOR THIS MINOR ADMITTEDLY JUVENILE TRANSGRESSION NETTED THE STUDENT A WHOPPING 4 1/2YEAR SUSPENSION THE IMPLICATION WAS THAT THE STUDENT'S DRUNKEN BARBS WERE SO OFFENSIVE THAT THE FEMALE STUDENT COULD NOT STUDY IN SUCH AN ENVIRONMENT AND THE PRESENCE OF THE CALLER WAS THUS A BARRIER TO LEARNING THE STUDENT WILL NOT BE ELIGIBLE TO REAPPLY TO BROWN UNTIL 1997 WHEN THE WOMAN HE TELEPHONED IS SCHEDULED TO GRADUATE THESE INCIDENTS AND MANY OTHERS MAKE IT CLEAR THAT STUDENT JUDICIAL BOARDS HAVE BECOME INCREASINGLY POLITICIZED TO PUNISH THOSE WHO DARE TO STRAY FROM THE PREVAILING IDEOLOGICAL HEGEMONY SCHOOLS CREATE POWERFUL JUDICIAL BOARDS BY CODIFYING LISTS OF VERY HARSH AND SPECIFIC PENALTIES FOR VIOLATIONS OF THEIR INTERNAL CODES AND COMBINE THEM WITH OFFENSES KEPT AS GENERIC AS POSSIBLE THE VAGUENESS OF THE OFFENSES AND THE POSSIBILITY OF OMINOUS COMPLICATED PROCEEDINGS BEFORE THE MOCK COURTS HAVE CREATED THE DESIRED AIR OF UNCERTAINTY AND INTIMIDATION IN WRITINGS BY STUDENTS IN ORAL PRESENTATIONS IN CLASS IN PHYSICAL RELATIONSHIPS AND EVEN IN PRIVATE DEALINGS WITH ANOTHER STUDENT WHO MIGHT REPORT TO THE SPEECH POLICE TRAGICALLY STUDENT JUDICIARY BOARDS DO NOT CONFINE THEIR JURISDICTION TO PETTY TRANSGRESSIONS OF SPEECH CODES PROCEDURALLY UNSOUND TO BEGIN WITH THESE BOARDS OFTEN OVERREACH BY ADJUDICATING IN CRIMINAL CASES NOTABLY ACCUSATIONS OF DATE RAPE THESE CASES ARE USUALLY HUSHED UP ON CAMPUS BY NERVOUS COLLEGE ADMINISTRATORS AND EMBARRASSED STUDENTS IN ONE PUBLICIZED CASE THIS SPRING AT YALE THAT MAKES A MOCKERY OF STANDARD AMERICAN NOTIONS OF JUSTICE THE COLLEGE EXECUTIVE COMMITTEE EXPELLED A MALE UNDERGRADUATE FOR THE ALLEGED RAPE OF A FEMALE STUDENT THOUGH HE DENIED THE CHARGE AND THERE WAS NO MEDICAL EVIDENCE SUPPORTING THE ACCUSATION LACKING THE PROPER QUALIFICATIONS TO HANDLE CRIMINAL ACCUSATIONS THE YALE COMMITTEE DISREGARDED STANDARD WESTERN LEGAL PROCEDURES AND TRADITIONS AS AT MOST SCHOOLS THE ACCUSED WAS DENIED FULL REPRESENTATION BY OUTSIDE LEGAL COUNSEL DURING HIS HEARING AND WAS PREVENTED FROM QUESTIONING HIS ACCUSER OR EVEN HEARING HER TESTIMONY HE WAS ALSO REQUIRED TO GIVE TESTIMONY THAT COULD BE LATER USED AGAINST HIM IN A REAL COURT OF LAW IN MOST CASES STUDENTS ARE NOT READ THEIR MIRANDA RIGHTS THIS IS NOT UNCOMMON WESLEYAN TAPES THE TESTIMONY GIVEN IN ALL OF ITS HEARINGS AND SAVES THE RECORDINGS NOT SURPRISINGLY IN ONE CASE A FEW YEARS AGO TAPES FROM THE HEARINGS WERE SUBPOENAED AS EVIDENCE IN A REAL CRIMINAL TRIAL IN MANY CASES THE RESULTS OF ALLOWING FACILE ACCUSATIONS TO BE ADJUDICATED BY MOCK TRIBUNALS IS THAT INNOCENT PEOPLE ARE CERTAIN TO BE TARGETS OF CENSORSHIP AND CHARACTER ASSASSINATION AT THE HANDS OF A ZEALOUS SQUADRON OF THOUGHT AND SPEECH POLICE IN OTHER CASES WHEN THE STUDENT MEMBERS OF THESE BOARDS MAKE POLITICALLY UNPOPULAR DECISIONS SUCH AS EXONERATING ACCUSED RAPISTS CAMPUS ACTIVISTS ARE OFTEN OUTRAGED PROTESTS ERUPTED FOUR TIMES IN THE PAST TWO YEARS AT WESLEYAN WHEN MALE STUDENTS ACCUSED OF RAPE WERE FOUND NOT GUILTY BY WESLEYAN'S SJB IT IS SIGNIFICANT TO NOTE HOWEVER THAT IN ALL FOUR OF THESE CASES NOT ONE OF THE ACCUSERS TOOK HER CHARGES TO THE LOCAL POLICE DEPARTMENT A LARGE PART OF THE PROBLEM IS THAT THERE IS AN ABDICATION ON THE PART OF COLLEGE DEANS AND PRESIDENTS OF THEIR RESPONSIBILITY TO ENGAGE ISSUES OF PRINCIPLE IN DEALING WITH DEMANDS FROM MINORITY ACTIVISTS AND FEMINISTS THAT STUDENTS WHO TRESPASS AGAINST THE PREVAILING ORTHODOXY BE DEALT WITH HARSHLY COLLEGE OFFICIALS DUCK RESPONSIBILITY BY SUBORDINATING MATTERS OF PRINCIPLE TO EXPEDIENCY ALLOWING JUSTICE TO BE METED OUT BY MOCK COURTS ONE CAN ONLY HOPE THAT AMERICA'S COLLEGES AND UNIVERSITIES WILL BE BROUGHT TO ANSWER FOR THEIR ARBITRARY RULES AND REGULATIONS AND THEIR MEANS OF ENFORCING THOSE HAZY STANDARDS TO THOSE ENDS THE COLLEGIATE SPEECH PROTECTION ACT SPONSORED BY REP HENRY HYDE R ILL MAY BE A GOOD FIRST STEP IT WOULD ALLOW STUDENTS AT PRIVATE SCHOOLS THAT RECEIVE FEDERAL FUNDS TO SEEK THROUGH THE COURTS THE SAME CONSTITUTIONAL PROTECTION STUDENTS AT PUBLIC SCHOOLS CAN NOW RECEIVE IN THE MEANTIME THERE ARE OTHER THINGS THAT CAN BE DONE BOTH THE WILLIAMS AND YALE STUDENTS FOR EXAMPLE HAVE FILED LAWSUITS AGAINST THEIR RESPECTIVE SCHOOLS IF THE FRACAS CONTINUES ONE CAN BE CERTAIN OTHER AGGRIEVED STUDENTS WILL FOLLOW THEIR EXAMPLE HOW COLLEGE OFFICIALS SQUARE ALL THIS ABSURDITY WITH THEIR CLAIM TO TEACH STUDENTS ABOUT TRUTH FREEDOM AND JUSTICE SHOULD BE AN INTERESTING REVELATION MR GOTTLIEB IS A SENIOR AT WESLEYAN UNIVERSITY IN MIDDLETOWN CONN AND EDITOR OF THE WESLEYAN REVIEW SEE RELATED LETTER LETTERS TO THE EDITOR PC VICTIMS UNITE WSJ OCT 4 1993 SEE RELATED LETTERS LETTERS TO THE EDITOR THE CASE FOR/AGAINST STUDENT JUDGES WSJ OCT 20 1993 9309270076 9310050147 YY93 MM10 9310200041 930913 ECONOMY CALIFORNIA GETS EPA REPRIEVE ON AUTO TESTS AGENCY DELAYS ON SANCTIONS FOR FAILURE TO COMPLY WITH CLEANAIR LAWS BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES IN THE FACE OF LASTMINUTE ARMTWISTING BY FELLOW DEMOCRATS THE HEAD OF THE ENVIRONMENTAL PROTECTION AGENCY GAVE CALIFORNIA A REPRIEVE FROM SANCTIONS FOR FAILING TO COMPLY WITH FEDERAL CLEANAIR LAWS THE CALIFORNIA LEGISLATURE ADJOURNED OVER THE WEEKEND WITHOUT ADOPTING A CENTRALIZED STATEOPERATED AUTOTESTING PROGRAM DEMANDED BY WASHINGTON BUT CAROL BROWNER EPA ADMINISTRATOR WHOSE STAFF JUST A FEW DAYS EARLIER WAS POISED TO BEGIN IMMEDIATELY THE FORMAL PROCESS OF WITHHOLDING ALMOST 800 MILLION IN HIGHWAYCONSTRUCTION FUNDS FROM THE ECONOMICALLY HARDPRESSED STATE REVERSED COURSE AT THE FINAL HOUR PROMPTED BY PUBLIC HOWLS OF PROTEST FROM STATE LAWMAKERS AND A QUIET PERSONAL APPEAL FROM CALIFORNIA'S DEMOCRATIC SEN DIANNE FEINSTEIN THE EPA CHIEF LAST FRIDAY GAVE THE STATE SEVERAL MORE MONTHS TO COME UP WITH AN INSPECTION PROGRAM ACCEPTABLE TO HER AGENCY IT IS TIME TO STOP THE RHETORIC AND STOP THE THREATS SEN FEINSTEIN TOLD THE EPA CHIEF IN A LETTER LAST WEEK THE EPA'S RESPONSE HOWEVER LEFT UNRESOLVED THE BASIC ECONOMIC AND SCIENTIFIC ARGUMENTS DRIVING THE DISPUTE CALIFORNIA STATE LAWMAKERS WANT TO PROTECT A BOOMING INDUSTRY OF 9000 LOCAL GARAGES AND PRIVATE TESTING STATIONS THAT CURRENTLY REPAIR AND PERFORM EMISSION CHECKS ON VEHICLES THEY ARGUED THAT SETTING UP AN EXPENSIVE STATERUN SYSTEM WON'T YIELD ENVIRONMENTAL BENEFITS THE EPA CONTENDS JUST AS VEHEMENTLY THAT CALIFORNIA'S EXISTING SMOGCHECK SYSTEM IS PRONE TO FRAUD COSTS MOTORISTS MORE THAN THE FEDERAL ALTERNATIVE AND WON'T MEET CLEANAIR STANDARDS UNLESS REPAIR AND TESTING FUNCTIONS ARE SEPARATED BEFORE HER SURPRISE ABOUTFACE THE EPA CHIEF SAID THAT IF THE LEGISLATURE BALKED SHE WOULD MOVE UNEQUIVOCALLY TO START THE CLOCK TICKING RIGHT AWAY ON SANCTIONS ENDANGERING TENS OF THOUSANDS OF HIGHWAY CONSTRUCTION JOBS RISKING ALMOST 2 BILLION ANNUALLY IN ROAD FUNDS AND THREATENING ADDITIONAL CONTROLS ON GROWTH IN THE ALREADY ECONOMICALLY REELING STATE EPA OFFICIALS HAD INSISTED THAT THEY HAD THE FULL SUPPORT OF THE WHITE HOUSE THE TRANSPORTATION DEPARTMENT AND OTHER PARTS OF THE ADMINISTRATION THE POLITICAL RISKS OF AN IMMEDIATE CONFRONTATION WITH THE STATE HOWEVER APPARENTLY WERE DEEMED TOO FORMIDABLE BY THE ADMINISTRATION FALLOUT FROM THE DEBATE NOW CERTAIN TO DRAG INTO NEXT YEAR NEVERTHELESS IS LIKELY TO INFLUENCE THE IMPENDING GUBERNATORIAL RACE IN THE COUNTRY'S MOST POPULOUS STATE AND CREATE POLITICAL RIPPLES FAR OUTSIDE CALIFORNIA WHITE HOUSE OFFICIALS ARE MISSING THE BIG PICTURE SAID RICHARD KATZ CHAIRMAN OF THE STATE ASSEMBLY'S TRANSPORTATION COMMITTEE AND AN EARLY CLINTON BACKER IF THEY THINK THEY CAN FORCE A CENTRALIZED SOLUTION TO AUTOEMISSIONS TESTING IN CALIFORNIA AND THEN COME BACK TO THE STATE FOR ELECTORAL PURPOSES THE EPA'S DECISION TO HOLD OFF ON SANCTIONS WAS LARGELY SYMBOLIC BECAUSE IT WOULD HAVE TAKEN THE AGENCY UNTIL EARLY 1994 ANYWAY TO ACTUALLY WITHHOLD FEDERAL FUNDS FROM CALIFORNIA STILL THE ISSUE IS SHAPING UP AS A TEST OF WILLS BETWEEN GOV PETE WILSON A REPUBLICAN INCUMBENT SEARCHING FOR A CAMPAIGN BOOST AND CLINTON ADMINISTRATION OFFICIALS OTHERWISE EAGER TO COURT CALIFORNIA VOTERS AND DEMONSTRATE THE WHITE HOUSE'S COMMITMENT TO REGULATORY REFORM ONCE THE EPA CHIEF OFFERED TO DELAY THE START OF SANCTIONS AND VOWED TO CONTINUE DISCUSSIONS WITH THE STATE STATE LEADERS OPTED TO DEFER ACTION ON ANY BILL THE LEADING MEASURE WHICH HAD BEEN STRONGLY OPPOSED BY THE EPA CALLED FOR ENHANCED ENFORCEMENT OF PRIVATE TESTING STATIONS AND STEPPEDUP ROADSIDE POLLUTION CHECKS BUT THE BILL EVENTUALLY STALLED IN THE STATE SENATE PARTLY BECAUSE OF THE EPA'S NEW STANCE AND PARTLY BECAUSE LEADERS OF SOME NATIONAL ENVIRONMENTAL GROUPS BACKED AWAY FROM A COMPROMISE PACKAGE AND ORDERED THEIR LOCAL REPRESENTATIVES TO OPPOSE IT ENACTING LEGISLATION IN JANUARY COULD PROVE EQUALLY TOUGH BECAUSE TWOTHIRDS OF THE LEGISLATURE WILL HAVE TO GET BEHIND ANY BILL TO PUT IT INTO EFFECT QUICKLY AND A FLURRY OF RECENT REPORTS FROM OUTSIDERS INCLUDING RAND CORP A PROMINENT THINK TANK CONCLUDE THAT THE EPA'S AUTOTESTING CONCEPTS ARE TECHNICALLY FLAWED DICK WILSON HEAD OF THE EPA'S OFFICE OF MOBILE SOURCES EARLIER THIS MONTH CRITICIZED STATE ENVIRONMENTAL OFFICIALS FOR QUIETLY URGING IMPOSITION OF A CENTRALIZED SYSTEM BUT THEN TRYING TO PIN THE BLAME ON WASHINGTON PART OF OUR ROLE HERE IS TO BE THE GORILLA IN THE CLOSET HE SAID IF THE LEGISLATURE DOESN'T ENACT AN AUTOTESTING BILL ACCEPTABLE TO THE AGENCY THE EPA UNILATERALLY COULD IMPOSE ITS OWN CLEANAIR PLAN CRACKING DOWN ON OIL REFINERIES MANUFACTURING PLANTS AND OTHER STATIONARY SOURCES OF POLLUTION ON THE OTHER HAND IF CALIFORNIA SUCCEEDS IN CRAFTING ITS OWN TESTING PLAN THAT COULD PROMPT OTHER STATES TO HAVE SECOND THOUGHTS ABOUT STATERUN AUTOTESTING SYSTEMS DEMANDED BY THE EPA SEE RELATED LETTER LETTERS TO THE EDITOR CALIFORNIA'S POSITION ON SMOG CHECK PLAN WSJ OCT 20 1993 9309130098 YY93 MM10 9310190186 931019 WHO'S NEWS ROHM & HAAS CO ROHM & HAAS CO PHILADELPHIA ROBERT P VOGEL WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT AT THIS CHEMICAL AND PLASTIC MANUFACTURING CONCERN MR VOGEL 49 YEARS OLD WILL ALSO BECOME GENERAL COUNSEL AT YEAR END SUCCEEDING JOHN T SUBAK WHO PLANS TO RETIRE 9310190185 931019 WHO'S NEWS EON CORP EON CORP RESTON VA R MICHAEL SHERIDAN 42 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THIS INTERACTIVETELEVISIONCOMMUNICATIONS CONCERN MR SHERIDAN WAS FORMERLY VICE PRESIDENT FOR PLANNING AND CORPORATE DEVELOPMENT HE SUCCEEDS DAVID A LEHMAN 60 WHO IS RETIRING 9310190184 931019 INTERNATIONAL BRITAIN'S FINANCIAL DEFICIT RISES LONDON BRITAIN'S PUBLIC SECTOR BORROWING REQUIREMENT OR FINANCIAL DEFICIT THE MOST WIDELY USED MEASURE OF THE GOVERNMENT'S FINANCES TOTALED 588 BILLION 888 BILLION IN SEPTEMBER COMPARED WITH A REVISED 349 BILLION IN AUGUST AND 401 BILLION A YEAR EARLIER THE TREASURY AND CENTRAL STATISTICAL OFFICE SAID IN THE FIRST HALF OF FISCAL 1992 WHICH BEGAN APRIL 1 THE DEFICIT TOTALED 2422 BILLION COMPARED WITH A DEFICIT OF 1838 BILLION IN THE SAME PERIOD A YEAR EARLIER 9310190183 931019 INTERNATIONAL EURO DISNEY PLANS TO SLASH 950 JOBS TO CUT ITS COSTS EURO DISNEY SCA PLANS TO CUT 950 ADMINISTRATIVE POSTS OR 86 OF ITS OVERALL WORK FORCE IN AN EFFORT TO HOLD DOWN COSTS AT THE STRUGGLING PARISIAN THEME PARK A EURO DISNEY SPOKESMAN SAID THE MOVE IS NECESSARY AS THE COMPANY SHIFTS FROM A STARTUP TO AN OPERATING PHASE EURO DISNEY EMPLOYS 11100 PEOPLE ALTHOUGH THAT FIGURE RISES DURING THE PEAK SUMMER MONTHS THE THEME PARK 49 OWNED BY WALT DISNEY CO SITS ON THE OUTSKIRTS OF PARIS AND OPENED IN APRIL 1992 UNION OFFICIALS REACTED UNFAVORABLY TO THE PROPOSED CUTS ROGER DUPONT A LOCAL REPRESENTATIVE OF THE CGT UNION SAID MANAGERS SHOULD FOCUS THEIR ATTENTION ON MAKING THE PARK AFFORDABLE AND IMPROVING THE PRODUCT RATHER THAN CUTTING JOBS IT ISN'T THAT WHICH WILL HELP IMPROVE THE IMAGE OF EURO DISNEY MR DUPONT SAID THE COMPANY MUST SUBMIT THE PLAN TO ITS EMPLOYEE REPRESENTATIVES COMMITTEE UNION TALKS ARE EXPECTED TO TAKE ABOUT THREE MONTHS THE MOVE WON MODEST PRAISE FROM ANALYSTS AND INVESTORS AND IT HELPED PUSH EURO DISNEY SHARES UP 085 FRANC TO 532 FRANCS 929 ON THE PARIS STOCK EXCHANGE NONETHELESS THE COMPANY'S SHARES REMAIN NEAR THEIR 52WEEK LOW OF 492 FRANCS SET LAST WEEK QUITE CLEARLY ONE OF THE THINGS THAT'S HAD A NEGATIVE EFFECT ON PROFITS IS ADMINISTRATIVE COSTS SAID REBECCA WINNINGTONINGRAM OF MORGAN STANLEY INTERNATIONAL IN LONDON BUT LIKE OTHER ANALYSTS MS WINNINGTONINGRAM SAID THE JOB CUTS WILL DO LITTLE TO BOLSTER THE COMPANY'S FORTUNES IT'S A SMALL DROP IN THE OCEAN SHE SAID INSTEAD ANALYSTS SAID THE COMPANY NEEDS TO FOCUS ON SUCH MAJOR ISSUES AS HIGH INTEREST COSTS AND ITS REVENUESHARING AGREEMENT WITH PARENT COMPANY WALT DISNEY EQUALLY IMPORTANT IS THE POSTPONED DEVELOPMENT OF THE SECOND PHASE OF THE THEME PARK WHICH SOME ANALYSTS SAID MAY BE A KEY TO THE PROJECT'S SUCCESS BECAUSE OF WEAK RESULTS EURO DISNEY HAS DELAYED THE SECOND PHASE WHICH IS TO INCLUDE A SECOND ATTRACTION SIMILAR TO THE DISNEYMGM STUDIOS ATTRACTION AT WALT DISNEY WORLD IN ORLANDO FLA EURO DISNEY REPORTED A LOSS OF 15 BILLION FRANCS 262 MILLION FOR THE FIRST NINE MONTHS OF ITS FISCAL YEAR WHICH ENDED SEPT 30 AND ANALYSTS SAY THE FULLYEAR LOSS WILL BE BETWEEN 17 BILLION FRANCS AND 19 BILLION FRANCS 9310190182 931019 WAREHOUSE AUTO CENTERS OFFER ROCHESTER NY WAREHOUSE AUTO CENTERS INC SAID IT SOLD 750000 UNITS AT 6 EACH IN ITS INITIAL PUBLIC OFFERING EACH UNIT CONTAINS ONE COMMON SHARE ONE CLASS A WARRANT AND ONE CLASS B WARRANT THE COMPANY SAID CAMELOT INVESTMENT CORP HAUPPAUGE NY WAS THE LEAD UNDERWRITER NET PROCEEDS OF THE OFFERING OF BETWEEN 4 MILLION AND 45 MILLION WILL BE USED TO OPEN TWO WAREHOUSETYPE STORES IN THE ROCHESTER AREA THAT WILL SELL AUTO PARTS AND ACCESSORIES 9310190181 931019 LEISURE & ARTS NEW MOVIES WORTH SEEING BY JULIE SALAMON THOUGH MORE MONEY IS SPENT ON MOVIES THAN EVER BEFORE IT'S RARE TO SEE A PICTURE WHERE BEAUTY COMMANDS THE BIG BUCKS NOT EXPLOSIVES OR MECHANICAL CREATURES THE AGE OF INNOCENCE MR SCORSESE'S ADAPTATION OF THE EDITH WHARTON NOVEL IS ALMOST DEFIANTLY GORGEOUS NOT PRETTY THIS ISN'T JUST ANOTHER SUPERFICIAL PERIOD PIECE THAT'S RIGHT ON THE DETAILS OF 19THCENTURY CUISINE AND COSTUME BUT WRONG IN SPIRIT IN ALMOST ALL WAYS MR SCORSESE AND SCREENWRITER JAY COCKS HAVE BEEN DUTIFUL TO MS WHARTON'S TEXT IT'S A MAGNIFICENT MOVIE THIS EXTRAORDINARY PICTURE IS LIKE SOME INTERESTING NEW HYBRID VEGETABLE THAT'S MUCH MORE DELICIOUS THAN ANY OF ITS PARTS FAMILIAR YET EXOTIC ORDINARY YET THRILLING THIS FREE ADAPTATION OF NINE RUSSELL CARVER STORIES AND A POEM BY MESSRS ALTMAN AND HIS COSCREENWRITER FRANK BARHYDT HAS AN ASTONISHING NATURALISM IT IS EXCITING FUNNY SAD AND SOMETIMES ANNOYING WITH ITS BLEAK VISION THE MOVIE HAS THE INTENSITY OF AN EPIC ONLY ITS SUBJECT IS EVERYDAY LIFE MR DE NIRO PLAYS HIS LATEST ROLE WITH REMARKABLE SKILL THIS TIME HE'S THE DIRECTOR OF THIS FILM VERSION OF MR PALMINTERI'S MEMOIR OF HIS BRONX BOYHOOD IN THE '60S IT'S TERRITORY MR DE NIRO HAS VISITED MANY TIMES AS AN ACTOR BUT THIS DOESN'T FEEL LIKE WARMED OVER SCORSESE THOUGH MR DE NIRO PICKED UP MANY IDEAS FROM THE MAN WHO HAS DIRECTED HIM SO OFTEN BUT THIS IS MR PALMINTERI'S STORY AND THE STREETS HE REMEMBERS AREN'T MEAN THEY'RE BITTERSWEET IT'S ALL THERE THE BRUTALITY THE CODES OF HONOR BUT FILTERED THROUGH THE MEMORY OF A MAN WHO WAS A SMART SENSITIVE BOY THE STORY IS ABOUT FOUR WOMEN WHO MET WEEKLY FOR 30 YEARS TO PLAY MAHJONGG AND THEIR DAUGHTERS PRESENTED AS AN EMOTIONAL COLLAGE THE MOTHERS IMMIGRANTS FROM CHINA SURVIVED ENORMOUS HARDSHIPS THE DAUGHTERS HAVE LED MUCH SOFTER LIVES AS COMFORTABLE AMERICANS THE DAUGHTERS ARE CONNECTED BY THE COMMON MYSTERY OF THEIR MOTHERS WHO WERE RAISED IN A CULTURE THE DAUGHTERS CAN ONLY IMAGINE THE PAST OF THE JOY LUCK CLUB MEMBERS HAS BEEN GIVEN THE MYTHOLOGICAL TONE OF A FABLE WITH NICE DETAIL AND MUCH FEELING THE FILMMAKERS SHOW US HOW THE PAST INFORMS THE PRESENT SADLY AND POWERFULLY IT'S A WISE BEAUTIFUL MOVIE ABOUT A POOR BUT SMART BOY WHO COMES OF AGE DURING THE DEPRESSION IN ST LOUIS THIS ADAPTATION OF AE HOTCHNER'S MEMOIR IS EVOCATIVE OF TIME AND PLACE AS WELL OF PERSPECTIVE THE PICTURE DOESN'T DEVIATE FROM THE POINT OF VIEW OF THE 12YEAROLD BOY WHO SITS WITH SUCH SELFASSURANCE AT THE CENTER OF THIS SPIRITED RECOLLECTION OF A DOUBLY DIFFICULT TIME PUBERTY AND THE DEPRESSION IN THIS IRISH STORY A MAGIC HORSE HELPS TWO YOUNG BOYS HELP THEIR FATHER A MOURNFUL DRUNK COME TO GRIPS WITH THE DEATH OF HIS WIFE THEIR MOTHER EIGHT YEARS AFTER THE FACT THEY ARE TRAVELERS IRISH GYPSIES MEANT TO LIVE LIFE ON THE ROAD AND THE FATHER HAS GIVEN UP THAT LIFE WITH EVERYTHING ELSE THE FILMMAKERS MAKE THE MAGIC SEEM AS REALISTIC AS THE DREARINESS IT'S A LOVELY FILM FOR ADULTS AND CHILDREN THOUGH IT MAY BE TOO COMPLEX FOR THE VERY YOUNG 9310190180 931019 INDUSTRY FOCUS NEC STANDS ALONE AS FUJITSU ADOPTS IBM PC STANDARD US RIVALS COMPAQ DELL AND IBM CLAIM A BATTLE IN WAR FOR JAPANESE MARKET BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO WHEN FUJITSU LTD ANNOUNCED A NEW LINEUP OF IBMCOMPATIBLE PERSONAL COMPUTERS YESTERDAY IT PUT THE FINAL BRICK INTO A WALL THAT FOREIGN PC MAKERS HAVE BEEN BUILDING AROUND JAPANESE MARKET LEADER NEC CORP FOR MORE THAN A YEAR WITH FUJITSU'S OFFICIAL ADOPTION OF THE IBM STANDARD NEC NOW STANDS VIRTUALLY ALONE IN THE JAPANESE MARKET AGAINST AN ONSLAUGHT OF IBMCOMPATIBLE MACHINES PUSHED BY US MAKERS COMPAQ COMPUTER CORP INTERNATIONAL BUSINESS MACHINES CORP AND DELL COMPUTER CORP AND THAT'S JUST THE WAY THE US COMPANIES WANTED IT AS THEY MOVE IN ON JAPANESE TURF THE JAPANESE PERSONALCOMPUTER MARKET IS IMPORTANT FOR US COMPANIES AS IT IS THE BIGGEST IN THE WORLD AFTER AMERICA'S AND TOTALS ABOUT 10 BILLION NEC'S PC WAS ONE OF THE DE FACTO STANDARDS IN JAPAN LAST OCTOBER WHEN COMPAQ KICKED OFF JAPAN'S PC PRICE WAR CROWS MASARU MURAI PRESIDENT OF COMPAQ'S JAPAN UNIT IN CONTRAST NEC IS NOW ISOLATED FROM THE REST OF THE WORLD FUJITSU IS THE LAST GUY WHO GOT ON OUR BANDWAGON NEVERTHELESS THE NEWS FROM FUJITSU ISN'T NECESSARILY GOOD FOR THE US COMPANIES CHALLENGING NEC WHICH STILL HOLDS 53 OF THE JAPANESE PC MARKET WITH THAT MARKET NOW DIVIDED AMONG THREE MAJOR PC STANDARDS NEC'S IBM'S AND THE MACINTOSH STANDARD OF APPLE COMPUTER INC JAPAN'S BLAZING PC WAR HAS MOVED INTO A NEW STAGE ROUND NO 1 RESEMBLED AN AIR WAR IN WHICH US COMPANIES STORMED JAPAN WITH MARKETING BLITZES AND AN AGGRESSIVE PRICECUTTING OFFENSIVE IN ROUND NO 2 THE GROUND WAR US COMPANIES WILL BEGIN THE LONG HARD SLOG TO WIN CUSTOMERS IN JAPAN'S NOTORIOUSLY DIFFICULT MARKET INCH BY INCH THAT KIND OF STRUGGLE COULD BE PARTICULARLY DIFFICULT FOR COMPAQ WHICH UNLIKE IBM AND DELL APPEARS TO HAVE GOTTEN OFF TO A SLOW START ANALYSTS SAY THE COMPANY HAS HAD TROUBLE DEVELOPING ITS DISTRIBUTION CHANNELS AND DISTINGUISHING ITSELF FROM ITS US AND JAPANESE RIVALS LARGELY BECAUSE OF THESE PROBLEMS THE JAPAN UNIT OF MARKETRESEARCH FIRM INTERNATIONAL DATA CORP IS EVEN CONSIDERING A DOWNWARD REVISION IN ITS FORECAST FOR COMPAQ'S 1993 SALES IN JAPAN CURRENTLY PEGGED AT 45000 UNITS COMPAQ'S US COMPETITORS BY CONTRAST AREN'T FARING BADLY AT ALL IBM WHICH HAS A LARGE DISTRIBUTION NETWORK AND ENJOYS STRONG NAME RECOGNITION IN JAPAN SAYS ITS MONTHLY PC SHIPMENTS ARE UP MORE THAN 30 FROM LAST YEAR THANKS LARGELY TO A POPULAR SMALL SUBNOTEBOOK AND A NOTEBOOK COMPUTER THAT INCORPORATES A CANON INC BUBBLEJET PRINTER DELL DOESN'T DISCUSS SHIPMENT FIGURES AND IS MORE DIFFICULT TO ASSESS BECAUSE OF ITS PREFERENCE FOR SELLING DIRECTLY TO CONSUMERS RATHER THAN THROUGH RETAIL CHANNELS EVEN SO IDC ESTIMATES THE COMPANY WILL SELL 22000 UNITS IN JAPAN THIS YEAR A RESPECTABLE FIGURE GIVEN DELL'S LOW PROFILE IN THE COUNTRY COMPAQ'S MAIN PROBLEM ACCORDING TO ANALYSTS IS THAT IT STILL RELIES TOO HEAVILY ON RETAIL SHOPS DOMINATED BY NEC A STRONG NETWORK OF LOYAL RETAILERS HAS LONG BEEN ONE OF NEC'S MAJOR ADVANTAGES IN THE JAPANESE PC MARKET AND ANALYSTS SAY IT HASN'T BEEN SHY ABOUT TAKING MAXIMUM ADVANTAGE OF ITS CLOUT AT SOME OF COMPAQ'S MAIN RETAILERS IN FACT THE ENTIRE SALES STAFF HAS BEEN TRAINED BY NEC IDC ANALYST BROOKE CROTHERS SAYS HE HAS EVEN WITNESSED SALESMEN FOR IBMCOMPATIBLE COMPUTERS STEERING CUSTOMERS AWAY FROM COMPAQ PCS TO NEC MODELS AT MAJOR RETAILER SHOPS ANALYSTS ALSO CHARGE THAT DESPITE AN ADVERTISING BARRAGE COMPAQ HAS BEEN UNABLE TO CONVINCE CONSUMERS WHY THEY SHOULD BUY A COMPAQ COMPUTER IF SOMEONE IS BUYING A NONJAPANESE MACHINE MOST PEOPLE WILL BUY AN IBM NOT A COMPAQ SAYS MR CROTHERS BEYOND EMPHASIZING HIGH PERFORMANCE AT A LOW PRICE SOMETHING MOST OTHER MANUFACTURERS ARE ALSO PUSHING COMPAQ DOESN'T HAVE A REAL JAPANESE MARKET STRATEGY HE SAYS SUCH PROBLEMS COULD ONLY GET WORSE SINCE THE ENEMY FOR US COMPANIES IS NO LONGER JUST NEC IT'S ALSO COMPANIES LIKE FUJITSU WHICH HAS PROMISED TO MARKET ITS IBMCOMPATIBLE PCS AGGRESSIVELY BY 1996 IN FACT FUJITSU SAID IT EXPECTS TO MORE THAN DOUBLE ITS SHARE OF THE OVERALL JAPANESE PC MARKET NOW ROUGHLY 10 BY SOME ESTIMATES AND TO HOLD 35 OF THE IBMCOMPATIBLE MARKET IN JAPAN TO GET THERE FUJITSU UNVEILED A NEW LINE OF IBMCOMPATIBLE PCS WITH PRICES SOMEWHAT HIGHER THAN PCS BY COMPAQ AND DELL BUT MUCH CHEAPER THAN PCS FROM IBM ONE OF FUJITSU'S MIDDLEEND DESKTOP MODELS FOR INSTANCE LISTS FOR 298000 YEN 2783 COMPARED WITH 248000 YEN FOR A SIMILAR COMPAQ 228000 YEN FOR A DELL AND 368000 YEN FOR AN IBM FUJITSU IS A HUGE COMPANY WITH VERY SOLID DISTRIBUTION CHANNELS AND MAJOR CLOUT WITH A LOT OF CUSTOMERS SAYS IDC'S MR CROTHERS THE COMPANY'S DECISION TO DEEMPHASIZE ITS OWN PCS IN FAVOR OF IBMSTYLE MACHINES WILL TURN A LOT OF HEADS AND MAY TURN A LOT OF PEOPLE AWAY FROM NEC EVENTUALLY FUJITSU HOWEVER STILL HAS INTERNAL RIVALRIES BETWEEN ITS PC AND OTHER COMPUTER DIVISIONS THAT COULD EASILY TRIP UP ITS NEW PC FORAY AND ANALYSTS ACKNOWLEDGE THAT COMPAQ HAS PLENTY OF TIME TO BUILD UP ITS OPERATION HERE COMPAQ HAS JUST STARTED FROM SCRATCH SAYS MAKIO INUI AN ANALYST WITH KLEINWORT BENSON INTERNATIONAL INC IN TOKYO I'M SURE THINGS WILL COME AROUND FOR THEM IN TIME FOR HIS PART COMPAQ'S MR MURAI DISMISSES CRITICISM OF HIS COMPANY ARGUING THAT COMPAQ HAS ACHIEVED ITS MAJOR GOALS FOR ITS FIRST YEAR BY ESTABLISHING THE IBM STANDARD IN JAPAN FORCING DOWN THE HIGH HARDWARE PRICES IN THE JAPANESE PC MARKET AND TRIGGERING MATCHING CUTS IN SOFTWARE PRICES WHAT'S MORE HE ARGUES USING DISTRIBUTORS WITH TIES TO NEC IS A SIGN OF STRENGTH NOT WEAKNESS NEC'S TWO LARGEST RETAILERS HE SAYS NOW NOT ONLY SELL COMPAQ COMPUTERS THEY'RE WILLING TO BE PUBLICLY IDENTIFIED AS COMPAQ DEALERS SOMETHING THAT WAS UNTHINKABLE JUST NINE MONTHS AGO COMPAQ IS ALSO FINDING NEW WAYS TO ATTRACT CUSTOMERS HE SAYS JUST YESTERDAY IN FACT COMPAQ STARTED OFFERING DISCOUNTS OF 19 TO 26 ON NEW PCS TO CUSTOMERS WHO TRADE IN THEIR OLDER PCS EVEN IF IT'S AN NEC 9310190179 931019 WHO'S NEWS HEALTHWATCH INC HEALTHWATCH INC BROOMFIELD COL JOHN D GREENBAUM 42 YEARS OLD WAS APPOINTED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MEDICAL INSTRUMENTATION CONCERN THOSE POSITIONS HAD BEEN VACANT SINCE THE DEPARTURE OF JOHN ERICKSON 50 SEVERAL MONTHS AGO MR GREENBAUM WAS PREVIOUSLY PRESIDENT AND CHIEF EXECUTIVE OF COLORADO MEDTECH INC WHICH WAS ACQUIRED BY HEALTHWATCH LAST MONTH 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 9310190178 931019 TRIZEC CORP TO HALT PAYMENTS ON DEBT FOR RESTRUCTURING CALGARY ALBERTA TRIZEC CORP SAID IT WILL SUSPEND PRINCIPAL AND INTEREST PAYMENTS ON ALL OF ITS DEBENTURES UNTIL HOLDERS AGREE ON A DEBT RESTRUCTURING PLAN THE TROUBLED REAL ESTATE COMPANY WHICH IS SEEKING TO RESTRUCTURE 19 BILLION CANADIAN DOLLARS US143 BILLION OF DEBT SAID THE DECISION WAS REACHED AFTER TALKS WITH COMMITTEES REPRESENTING SENIOR DEBENTURE HOLDERS AND PREFERRED SHAREHOLDERS TRIZEC SAID IT AGREED IN THESE MEETINGS TO TREAT ALL SENIOR DEBENTURE HOLDERS EQUALLY AS A RESULT TRIZEC SAID IT WON'T REDEEM THE C566 MILLION US425 MILLION OF SWISS FRANCDENOMINATED 6125 DEBENTURES ON THURSDAY'S DUE DATE INTEREST WILL CONTINUE TO ACCRUE AT EXISTING RATES ON BOTH SENIOR AND JUNIOR DEBT THE COMPANY SAID TRIZEC SAID IT HOPES TO ISSUE AN INFORMATION CIRCULAR CONTAINING FULL DETAILS OF A FINAL RESTRUCTURING PLAN BY MIDNOVEMBER WITH DEBTHOLDERS AND SHAREHOLDERS SCHEDULED TO VOTE ON DEC 7 IT SAID TALKS ARE PROCEEDING WITH THE GROUPS OF DEBTHOLDERS TRIZEC A REAL ESTATE CONCERN IS 52 HELD BY THE GROUP OF COMPANIES CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN 9310190177 931019 INDEPENDENT BANK BUYS PIONEER IONIA MICH INDEPENDENT BANK CORP SAID IT HAS COMPLETED THE ACQUISITION OF PIONEER BANK NORTH BRANCH MICH FROM 1889 BANKCORP INC OF EAST LANSING MICH THE TERMS OF THE TRANSACTION BETWEEN THE TWO BANK HOLDING COMPANIES WERE NOT DISCLOSED 9310190176 931019 MARKETING & MEDIA MEAD UNIT DEVELOPS OFFLINE NEWS SERVICE FOR AT&T CUSTOMERS DAYTON OHIO MEAD CORP'S MEAD DATA CENTRAL UNIT SAID IT DEVELOPED AN EASYTOUSE OFFLINE ELECTRONIC NEWS SERVICE FOR CERTAIN AMERICAN TELEPHONE & TELEGRAPH CO CUSTOMERS THE SERVICE CALLED PUBCITE ALLOWS USERS OF AT&T MAIL AN ELECTRONIC MAIL SERVICE TO SUBSCRIBE TO ELECTRONIC TABLES OF CONTENTS FOR 15 BUSINESS AND INDUSTRY MAGAZINES THE TABLES OF CONTENTS ARE SENT TO AT&T MAILBOXES CUSTOMERS CAN ORDER UP FULL TEXTS OF ARTICLES WHICH ARE DELIVERED VIA ELECTRONIC MAIL OR FAX PUBCITE OFFERS FEWER NEWS SOURCES AND TAKES LONGER THAN AN ONLINE DATABASE SEARCH BUT IT ALSO COSTS LESS PUBCITE COSTS 29 A MONTH PER TABLE OF CONTENTS PLUS 475 FOR EACH ARTICLE ORDERED NEXIS AN ONLINE SERVICE ALSO OFFERED BY MEAD DATA CENTRAL COSTS 39 AN HOUR TO SEARCH PLUS ADDITIONAL COSTS FOR EACH ARTICLE NEXIS IS ALSO MORE COMPLICATED TO USE THE DEAL MAY BE MORE SIGNIFICANT FOR MEAD THAN FOR AT&T BECAUSE IT GIVES MEAD ACCESS TO A HUGE AT&T CUSTOMER BASE SAID JOSHUA HARRIS PRESIDENT OF TELECOMMUNICATIONS RESEARCH FIRM JUPITER COMMUNICATIONS CO NEW YORK AT&T MAIL HAS ABOUT 425000 DIRECT SUBSCRIBERS SAID ERIC ARNUM EDITOR OF ELECTRONIC MAIL & MICRO SYSTEMS A NEWSLETTER BASED IN WASHINGTON DC 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 9310190175 931019 INTERNATIONAL PEUGEOT LOOKS OUTSIDE EUROPE PARIS FACING THE PROSPECT OF WEAK SALES GROWTH IN EUROPE FRENCH CAR MAKER PSA PEUGEOT CITROEN HAS DECIDED TO BOOST PRODUCTION IN OTHER AREAS WHERE MARKETS ARE SET TO BE MORE BUOYANT THE GROUP NOW BELIEVES THAT THE BULK OF ITS SALES GROWTH THROUGH THE END OF THE DECADE WILL COME FROM OUTSIDE EUROPE THE EUROPEAN MARKET SHOULD REACH 168 MILLION CARS BY 2000 UP ONLY 8 FROM THE 156 MILLION UNITS SOLD IN 1992 OVER THE SAME PERIOD ASIAN CAR SALES ARE EXPECTED TO RISE BY 58 ACCORDING TO PEUGEOT CITROEN ECONOMISTS COMPANY OFFICIALS SAID PEUGEOT CITROEN IS TALKING TO CHINESE AUTHORITIES ABOUT EXPANDING THE PEUGEOT ASSEMBLY PLANT IN CHINA 9310190174 931019 WHO'S NEWS WOLVERINE EXPLORATION CO WOLVERINE EXPLORATION CO FORT WORTH TEXAS GERALD W HADDOCK WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS ENERGY EXPLORATION COMPANY MR HADDOCK 46 YEARS OLD WAS A PARTNER AT THE LAW FIRM JACKSON & WALKER AND HAS BEEN A WOLVERINE DIRECTOR SINCE 1987 HE SUCCEEDS GLENN A ADAMS 36 WHO REMAINS PRESIDENT AND CHIEF OPERATING OFFICER 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 9310190173 931019 INTERNATIONAL OVERSEAS PRODUCTION BY TOYOTA AND NISSAN CLIMBED IN SEPTEMBER SPECIAL TO THE WALL STREET JOURNAL TOKYO DOMESTIC PRODUCTION CONTINUED ITS DECLINE AND OVERSEAS PRODUCTION CONTINUED ITS RISE IN SEPTEMBER AT TOYOTA MOTOR CORP AND NISSAN MOTOR CO JAPAN'S TWO LARGEST VEHICLE MANUFACTURERS DOMESTIC CAR PRODUCTION AT TOYOTA FELL 18 TO 237682 VEHICLES AND AT NISSAN FELL 68 TO 141251 VEHICLES DOMESTIC PRODUCTION OF COMMERCIAL VEHICLES FELL 15 AT TOYOTA TO 54035 UNITS AND FELL 28 AT NISSAN TO 23967 UNITS OVERSEAS PRODUCTION BY TOYOTA OF ALL VEHICLES ROSE 27 TO 78175 UNITS AND BY NISSAN ROSE 94 TO 91506 UNITS BOTH COMPANIES REPORTED THAT SALES ROSE FOR NEWLY REMODELED LINES WITH NISSAN SHOWING ITS FIRST YEARONYEAR CLIMB IN DOMESTIC PASSENGERCAR SALES IN 22 MONTHS CAR SALES AT NISSAN ROSE 4 TO 78721 UNITS WHILE TOYOTA'S SALES ROSE 42 TO 120234 UNITS SALES OF COMMERCIAL VEHICLES FELL 85 AT TOYOTA TO 51483 UNITS AND FELL 59 AT NISSAN TO 25583 UNITS A SPOKESWOMAN FOR NISSAN SAID SALES OF ITS NEWLY INTRODUCED SKYLINE MODEL ROSE 177 FROM A YEAR EARLIER A MAJOR FACTOR IN THE OVERALL RISE IN ITS DOMESTIC PASSENGERCAR SALES TOYOTA SAID ITS RECENTLY REMODELED CROWN AND WINDOM MODELS HAD BUOYANT SALES ALTHOUGH OVERALL THE RECESSION IN THE DOMESTIC MARKET LEFT THE COMPANY WITH A YEARONYEAR FALL IN SALES 9310190172 931019 HIGH COURT TO RULE ON ROLE OF COURTS IN BASE CLOSINGS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT AGREED TO DECIDE WHETHER FEDERAL COURTS MAY SECONDGUESS DECISIONS TO CLOSE MILITARY BASES THE JUSTICES WILL REVIEW A LOWERCOURT RULING ON THE PROPOSAL TO SHUT DOWN THE NAVY SHIPYARD IN PHILADELPHIA THAT RULING REINSTATED A LAWSUIT ORIGINALLY DISMISSED SEEKING TO BLOCK THE PROPOSED SHUTDOWN THE CLINTON ADMINISTRATION APPEALED THAT RULING ARGUING THAT THE COURTS LACK AUTHORITY TO INTERFERE WITH THE FEDERAL GOVERNMENT'S EFFORT TO SAVE MONEY BY ELIMINATING UNNEEDED BASES IF LOCAL GROUPS ARE ALLOWED TO CHALLENGE CLOSURE DECISIONS IN COURT THE PUSH TO SHRINK THE MILITARY COULD BE THWARTED THE ADMINISTRATION ASSERTED PROTRACTED PROCEDURAL LITIGATION OVER BASE CLOSURES DOOMED PRIOR EFFORTS TO CLOSE OBSOLETE DOMESTIC BASES IN THE 1980S THE ADMINISTRATION SAID THE PHILADELPHIA SHIPYARD WHICH EMPLOYS ABOUT 7000 PEOPLE WAS AMONG 82 INSTALLATIONS APPROVED FOR CLOSING OR REVAMPING IN 1991 BY PRESIDENT GEORGE BUSH HE ACTED UNDER A 1990 LAW WHICH REQUIRES THREE ROUNDS OF BASECLOSING DECISIONS IN 1991 1993 AND 1995 UNDER THE LAW THE SECRETARY OF DEFENSE MAKES RECOMMENDATIONS TO A SPECIAL COMMISSION WHICH HOLDS PUBLIC HEARINGS AND THEN SUBMITS A LIST TO THE PRESIDENT THE PRESIDENT CAN APPROVE OR REJECT THE LIST AS A WHOLE IF THE PRESIDENT ACCEPTS THE CLOSINGS CONGRESS MAY STILL VETO THEM AFTER CONGRESS FAILED TO BLOCK THE 1991 DECISION TO SHUT THE PHILADELPHIA SHIPYARD POLITICIANS FROM PENNSYLVANIA NEW JERSEY AND DELAWARE INCLUDING SEN ARLEN SPECTER R PA FILED A SUIT TO CHALLENGE THE ACTION THE SUIT ALLEGED THAT THE PANEL AND THE PENTAGON HAD IMPROPERLY MANIPULATED THE DECISIONMAKING PROCESS TO ENSURE THAT THE PHILADELPHIA FACILITY WOULD BE CLOSED A FEDERAL JUDGE INITIALLY DISMISSED THE SUIT BUT AFTER FURTHER LITIGATION INCLUDING A PREVIOUS APPEAL TO THE SUPREME COURT THE FEDERAL APPEALS COURT IN PHILADELPHIA SAID THAT THE SUIT SHOULD PROCEED THE CLINTON ADMINISTRATION IS APPEALING THAT RULING THE PHILADELPHIA COURT'S DECISION CONFLICTED WITH A RULING BY THE FEDERAL APPEALS COURT IN BOSTON WHICH DISMISSED A CHALLENGE TO A BASE CLOSURE IN MAINE IN ITS APPEAL OF THE PHILADELPHIA COURT'S DECISION THE ADMINISTRATION SAID THAT THE GOAL OF AVOIDING PAROCHIAL EFFORTS TO PROTECT UNNEEDED MILITARY FACILITIES IS INCOMPATIBLE WITH JUDICIAL ENFORCEMENT OF THE BASECLOSING LAW'S PROCEDURAL PARTICULARS 9310190171 931019 INTERNATIONAL GPA HOLDERS VOTE FOR GE CAPITAL'S CONTROL OF GPA BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL SHAREHOLDERS IN GPA GROUP PLC VOTED OVERWHELMINGLY TO APPROVE THE IRISH AIRCRAFT LEASING COMPANY'S BILLIONDOLLAR RESTRUCTURING PLAN THE VOTE WHICH WAS EXPECTED RESCUES GPA FROM NEAR CERTAIN BANKRUPTCY BY RAISING 129 MILLION FROM SHAREHOLDERS AND GIVING THE GOAHEAD FOR GE CAPITAL CORP TO GAIN CONTROL OF THE COMPANY BOTH ORDINARY AND PREFERRED SHAREHOLDERS VOTED IN FAVOR OF THE PLAN BY MAJORITIES IN EXCESS OF 90 ONLY A FEW SHAREHOLDERS WERE PRESENT AT THE COMPANY'S SHANNON IRELAND HEADQUARTERS FOR THE VOTE MOST VOTED BY PROXY PENDING CERTAIN THIRDPARTY APPROVALS SUCH AS FROM REGULATORS THE COMPLEX RESTRUCTURING DEAL WILL CLOSE IN A WEEK OR TWO WE ARE AIMING TO CLOSE THE TRANSACTION AS SOON AS WE CAN GPA CHAIRMAN TONY RYAN SAID UNDER THE PLAN GE CAPITAL A UNIT OF GENERAL ELECTRIC CO OF THE US IS BUYING 44 PLANES FROM GPA FOR 124 BILLION GE CAPITAL ALSO WILL SET UP A MANAGEMENT COMPANY STAFFED PRIMARILY BY GPA OFFICIALS TO OVERSEE GPA'S NEARLY 500PLANE FLEET IN ADDITION GE CAPITAL HAS AN OPTION TO BUY 67 OF THE COMPANY FOR 165 MILLION AND FURTHER OPTIONS FOR 100 OWNERSHIP AS PART OF THE PLAN GPA'S BANKS HAVE ALSO AGREED TO DEFER 750 MILLION IN LOAN PAYMENTS AND TO GRANT THE IRISH COMPANY NEW LENDING COVENANTS MEANWHILE GPA HAS CANCELED OR DEFERRED 77 BILLION IN AIRCRAFT ORDERS THE RESTRUCTURING SIGNALS A NEW ROLE FOR MR RYAN WHO FOUNDED THE COMPANY AND PILOTED IT TO PROMINENCE AT ONE POINT EARLY LAST YEAR GPA WAS THE WORLD'S LARGEST BUYER OF AIRCRAFT ITS BOARD OF DIRECTORS INCLUDED SUCH PROMINENT MEMBERS AS FORMER UK CHANCELLOR OF THE EXCHEQUER LORD NIGEL LAWSON AND FORMER IRISH PRIME MINISTER GARRET FITZGERALD BUT A FAILED 1 BILLION SHARE OFFERING IN JUNE SENT GPA SCRAMBLING TO RESTRUCTURE ITS ORDER BOOK BALANCE SHEET AND BANK COVENANTS MR RYAN AND MANY OF GPA'S TOP EXECUTIVES WILL NOW MOVE TO THE NEW GE CAPITAL SUBSIDIARY TO BE CALLED GE CAPITAL AVIATION SERVICES LTD AVIATION INDUSTRY OFFICIALS SAY THE ALLIANCE OF GPA'S MARKETING SAVVY WITH GE CAPITAL'S HUGE FINANCIAL RESOURCES CREATES A GOLIATH IN THE AIRCRAFT LEASING INDUSTRY GE CAPITAL ALREADY HAS A SIZABLE AVIATION PORTFOLIO INCLUDING OWNERSHIP OF POLARIS AIRCRAFT LEASING CORP WHICH LEASES HUDREDS OF AGING PLANES TO US AIRLINES BUT GE CAPITAL WILL PROTECT ITS TRIPLEA CREDIT RATING BY NOT ASSUMING RESPONSIBILITY FOR GPA'S DEBTS UNLESS IT DECIDES TO EXERCISE ITS OPTIONS 9310190170 931019 COMPUTER SCIENCES WINS JOB FALLS CHURCH VA COMPUTER SCIENCES CORP SAID IT ENTERED A CONTRACT TO PROVIDE TANK TRAINING DEVICES TO THE US ARMY NATIONAL GUARD THE COMPANY SAID THE 11 MILLION CONTRACT COVERS 31 INITIAL TRAINERS IN THE FIRST YEAR OF A POSSIBLE MULTIYEAR AGREEMENT THAT INCLUDES PRODUCTION OPTIONS OF AS MANY AS 500 TRAINERS CALLED GUARD UNIT ARMORY DEVICE FULLCREW INTERACTIVE SIMULATION TRAINERARMO TRAINERS OR GUARDFIST I THE CONTRACT WAS AWARDED BY THE US ARMY'S SIMULATION TRAINING AND INSTRUMENTATION COMMAND AND THE NAVAL TRAINING SYSTEMS CENTERS 9310190169 931019 WHO'S NEWS GENVEC GENVEC ROCKVILLE MD THOMAS W D'ALONZO 50 YEARS OLD A FORMER PRESIDENT OF GLAXO INC OF RESEARCH TRIANGLE PARK NC WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS PRIVATELY HELD BIOTECHNOLOGY COMPANY WHICH IS DEVELOPING GENE THERAPY FOR CYSTIC FIBROSIS CANCER AND OTHER LIFETHREATENING ILLNESSES MR D'ALONZO SAID IN AN INTERVIEW THAT THE COMPANY HOPES TO BEGIN CLINICAL TRIALS NEXT YEAR ON A GENE THERAPY FOR CYSTIC FIBROSIS 9310190168 931019 WHO'S NEWS TOYS R US INC TOYS R US INC PARAMUS NJ GINNY HARRIS WAS NAMED SENIOR VICE PRESIDENT AND GENERAL MERCHANDISE MANAGER OF KIDS R US THE TOY RETAILER'S CLOTHING DIVISION MS HARRIS HAD HELD A SIMILAR POSITION AT DAYTON HUDSON CORP'S MERVYN'S DIVISION ALSO KARL TAYLOR WAS NAMED VICE PRESIDENT OF MERCHANDISE PLANNING AND ALLOCATIONS AT TOYS R US HE HAD BEEN DIRECTOR OF MERCHANDISE PLANNING AND ALLOCATIONS 9310190167 931019 PLACER DOME COPPER IN CHILE VANCOUVER BRITISH COLUMBIA PLACER DOME INC AND OUTOKUMPU COPPER RESOURCES BV APPROVED THE DEVELOPMENT OF THEIR ZALDIVAR COPPER DEPOSIT IN NORTHERN CHILE AT A COST OF ABOUT 600 MILLION PLACER DOME SAID CONSTRUCTION WILL BEGIN IMMEDIATELY AND PRODUCTION IS SCHEDULED TO START IN LATE 1995 PLACER DOME A MINING CONCERN AND OUTOKUMPU COPPER A UNIT OF OUTOKUMPU OY OF FINLAND EACH OWN HALF OF THE ZALDIVAR PROPERTY PLACER DOME SAID IT WILL PROVIDE UP TO 400 MILLION FOR INITIAL FINANCING OF THE PROJECT WHICH IS EXPECTED TO PRODUCE ABOUT 42 BILLION POUNDS OF COPPER OVER A MINE LIFE OF AT LEAST 17 YEARS AT AN ESTIMATED AVERAGE COST OF 52 CENTS A POUND 9310190166 931019 CRANE CO ACQUISITION STAMFORD CONN CRANE CO A MAKER OF ENGINEERED INDUSTRIAL PRODUCTS SAID IT BOUGHT THE FILON FIBERGLASS REINFORCED PLASTIC PANEL BUSINESS FROM BP CHEMICALS INC A UNIT OF LONDONBASED BRITISH PETROLEUM CO FOR ABOUT 25 MILLION THE PURCHASE INCLUDES A RECENTLY CONSTRUCTED MANUFACTURING FACILITY IN JONESBORO ARK CRANE SAID 9310190165 931019 INVESTOR GROUP OFFERS TO BUY OUT CORPORATE SOFTWARE BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL CORPORATE SOFTWARE INC SAID A GROUP THAT INCLUDES MANAGEMENT AND OUTSIDE INVESTORS HAS AGREED TO TAKE THE COMPANY PRIVATE IN A BUYOUT VALUED AT ABOUT 93 MILLION OR 15 A SHARE THE OFFER BY GARDEN ACQUISITION CORP A NEWLY FORMED COMPANY THAT INCLUDES AN INVESTOR GROUP LED BY INFORMATION PARTNERS INC AND BAIN CAPITAL INC REPRESENTS A 33 PREMIUM TO CORPORATE SOFTWARE'S TRADING PRICE BEFORE THE PROPOSED TRANSACTION WAS ANNOUNCED BUT THE CANTON MASS COMPANY SAID IN A STATEMENT THAT THE OFFER DOESN'T PRECLUDE IT FROM ENTERING INTO DISCUSSIONS WITH OTHER POTENTIAL ACQUIRERS THE STATEMENT DIDN'T SAY WHETHER THE COMPANY HAS BEEN APPROACHED BY ANYONE ELSE CONCERNING A POSSIBLE ACQUISITION COMPANY OFFICIALS COULDN'T BE REACHED TO COMMENT FURTHER A SPOKESMAN SAID CORPORATE SOFTWARE OFFICIALS HAVE BEEN ADVISED BY COMPANY LAWYERS NOT TO COMMENT ON THE PROPOSED BUYOUT UNTIL A PROXY STATEMENT IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION NEXT WEEK WHILE CORPORATE SOFTWARE HASN'T BEEN THE SUBJECT OF TAKEOVER SPECULATION IT ISN'T INCONCEIVABLE THAT A RIVAL SUITOR COULD SURFACE ANALYSTS SAID MY OPINION IS THAT AT 15 A SHARE THE COMPANY IS A STEAL ANYWAY I PUT A PENCIL TO IT THE COMPANY WOULD BE A GOOD BUY EVEN AT 20 A SHARE SAID MICHAEL STANEK SOFTWARE ANALYST FOR PIPER JAFFRAY IN MINNEAPOLIS UNDER TERMS OF THE DEAL FINANCING IS TO BE PROVIDED BY GE CAPITAL A UNIT OF GENERAL ELECTRIC CO THE COMPANY SAID INFORMATION PARTNERS BASED IN BOSTON IS AN INVESTMENTMANAGEMENT COMPANY AFFILIATED WITH BAIN CAPITAL A BOSTON LEVERAGEDBUYOUT FIRM SEPARATELY CORPORATE SOFTWARE SAID THIRDQUARTER NET INCOME REMAINED FLAT AT 12 MILLION OR 20 CENTS A SHARE SALES INCREASED 13 TO 847 MILLION FROM 747 MILLION A YEAR EARLIER THE COMPANY SAID ITS NORTH AMERICAN SALES WERE UP 30 BUT THAT ITS EUROPEAN BUSINESS PARTLY AS A RESULT OF UNFAVORABLE CURRENCY TRANSLATIONS DECLINED 15 EUROPE ACCOUNTED FOR 28 OF TOTAL SALES IN THE THIRD QUARTER DOWN FROM 38 A YEAR EARLIER ANALYSTS SAID THAT IN ADDITION TO A SLOW ECONOMY IN EUROPE CORPORATE SOFTWARE'S PROFITS HAVE BEEN SQUEEZED BY COMPETITIVE PRICING IN THE US 9310190164 931019 CONSUMERS' WILLINGNESS TO BUY GROWS IN SURVEY WASHINGTON CONSUMERS SEEM MORE WILLING TO MAKE PURCHASES THAN THEY HAVE BEEN SINCE THE LATE 1980S A NEW REPORT SUGGESTS ROPER STARCH WORLDWIDE INC ASKED NEARLY 2000 ADULTS IN SEPTEMBER WHETHER THEY THOUGHT NOW WAS A GOOD TIME TO BUY AND 32 SAID THEY FELT IT WAS THAT'S THE HIGHEST LEVEL OF PURCHASING CONFIDENCE THE POLLING FIRM HAS FOUND SINCE JULY 1989 AND IS UP FROM A 29 READING IN AUGUST THE HIGH READING OF THE ROPER INDEX IS A STARK CONTRAST TO TWO WIDELY FOLLOWED MEASURES OF CONSUMER CONFIDENCE INDEXES BY THE CONFERENCE BOARD AND THE UNIVERSITY OF MICHIGAN ARE AT VERY DEPRESSED LEVELS ALTHOUGH BOTH HAVE SHOWN SLIGHT UPTICKS IN RECENT MONTHS INDEED THERE ARE SIGNS THAT CONSUMERS HAVE BECOME WILLING TO BUY RETAILERS HAVE BEEN REPORTING STRONGER SALES AND CONSUMERS HAVE BEEN ADDING TO THEIR DEBT LOADS SINCE EARLY 1993 THE ROPER INDEX ROSE AFTER THE PRESIDENTIAL ELECTION AND DROPPED AT THE START OF THE YEAR MUCH LIKE THE OTHER TWO INDEXES BUT THE ROPER INDEX HAS BEEN RISING FAIRLY CONSISTENTLY SINCE MAY WHILE THE OTHER TWO REMAINED IN THE DUMPS ONE REASON FOR THE CONTRAST BETWEEN INDEXES MAY BE THAT THE ROPER SURVEY ASKS ONLY IF IT IS A GOOD TIME TO BUY WHILE THE OTHER TWO SURVEYS ASK ABOUT THE JOB MARKET AND ECONOMIC CONDITIONS 9310190163 931019 AIG TO OPEN OFFICE IN VIETNAM NEW YORK AMERICAN INTERNATIONAL GROUP INC SAID IT WILL OPEN A REPRESENTATIVE OFFICE IN HANOI AS A FIRST STEP IN ESTABLISHING A PRESENCE IN VIETNAM AIG CAN'T DO ANY UNDERWRITING IN THE COUNTRY AT THIS TIME BECAUSE A TRADE EMBARGO AGAINST VIETNAM BARS US COMPANIES FROM PROMOTING OR ENTERING INTO BUSINESS CONTRACTS THERE AIG SAID IT BELIEVES IT IS THE FIRST FOREIGN INSURANCE ORGANIZATION TO OBTAIN REPRESENTATIVE OFFICE STATUS IN VIETNAM 9310190162 931019 LETTER BLITZ AIMS TO QUASH GM'S PICKUPTRUCK PACT DETROIT IN A NEW ATTACK ON A PROPOSED SETTLEMENT INVOLVING 197387 GENERAL MOTORS CORP PICKUPS OPPONENTS OF THE DEAL ARE SENDING MORE THAN 6000 LETTERS TO GM DEALERS WARNING THEM NOT TO RESELL THE USED TRUCKS YOU FACE ENORMOUS POTENTIAL LIABILITY LOSSES SHOULD YOU SELL A USED GENERAL MOTORS PICKUP WITH SIDESADDLE GAS TANKS WITHOUT REMEDYING THE HAZARD JOHN RICHARD DIRECTOR OF THE WASHINGTON DC GROUP ESSENTIAL INFORMATION WROTE IN A LETTER TO TRUCK DEALERS ESSENTIAL INFORMATION IS A GROUP FOUNDED BY GM CRITIC RALPH NADER THE TRUCKS' CRITICS SAY THE GAS TANKS ARE VULNERABLE TO FIERY EXPLOSIONS WHEN THE TRUCKS ARE HIT IN THE SIDE THE LETTERS COME JUST A WEEK BEFORE A US DISTRICT COURT JUDGE IN PHILADELPHIA AND A STATE COURT JUDGE IN TEXAS ARE EXPECTED TO HEAR ARGUMENTS CONCERNING THE FAIRNESS OF THE PROPOSED SETTLEMENT THE CENTER FOR AUTO SAFETY ALREADY HAS FILED AN OBJECTION AS HAVE THOUSANDS OF TRUCK OWNERS THE CENTER A SISTER ORGANIZATION TO ESSENTIAL INFORMATION WANTS GM TO RECALL THE TRUCKS BUT ATTORNEYS WHO NEGOTIATED THE SETTLEMENT SAY IT WILL HELP MILLIONS OF TRUCK OWNERS BUY NEW TRUCKS THE SETTLEMENT WOULD GIVE SOME SIX MILLION TRUCK OWNERS 1000 COUPONS GOOD ON A NEW TRUCK 9310190161 931019 CANADA FACTORIES HAD INCREASE IN SHIPMENTS NEW ORDERS IN AUGUST OTTAWA CANADIAN MANUFACTURERS RECORDED AN UPSWING IN SHIPMENTS AND NEW ORDERS IN AUGUST LED BY THE AUTO AND WOOD INDUSTRIES SHIPMENTS ROSE TO A SEASONALLY ADJUSTED 2576 BILLION CANADIAN DOLLARS US1935 BILLION IN AUGUST A 37 INCREASE FROM JULY STATISTICS CANADA A GOVERNMENT AGENCY SAID AUTOINDUSTRY SHIPMENTS WERE UP 175 FROM JULY AND WOODINDUSTRY SHIPMENTS WERE UP 78 STATISTICS CANADA ATTRIBUTED THE AUTO INDUSTRY'S SHARP GAIN PARTLY TO STRONG SALES OF SOME MODELS IN THE US THE INCREASE IN WOODINDUSTRY SHIPMENTS RESULTED PARTLY FROM A RESUMPTION OF OPERATIONS AT SOME PLANTS AFTER EXTENDED SHUTDOWNS NEW ORDERS ROSE 37 IN AUGUST TO C2563 BILLION UNFILLED ORDERS HOWEVER DECLINED 05 TO C2441 BILLION IT WAS THE FOURTH DECLINE IN UNFILLED ORDERS IN FIVE MONTHS 9310190160 931019 STEEL PRODUCTION ROSE 33 IN LATEST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 33 LAST WEEK TO 1883000 TONS FROM 1823000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT WAS UP 1275 FROM THE 1670000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 895 OF ITS CAPABILITY LAST WEEK COMPARED WITH 866 THE PREVIOUS WEEK AND 772 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENTAGE OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN PERIOD 9310190159 931019 WHO'S NEWS SANTA FE PACIFIC PIPELINES INC SANTA FE PACIFIC PIPELINES INC LOS ANGELES WILFORD D GODBOLD JR WAS ELECTED A DIRECTOR INCREASING THE BOARD OF THIS REFINED PETROLEUM PRODUCTS PIPELINE TO SEVEN MR GODBOLD 55 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OF ZERO CORP 9310190158 931019 WHO'S NEWS KNIGHTRIDDER CHAIRMAN IS INJURED IN CAR CRASH MIAMI KNIGHTRIDDER INC'S CHAIRMAN AND CHIEF EXECUTIVE JAMES K BATTEN WAS CRITICALLY INJURED IN AN AUTO ACCIDENT BUT IS EXPECTED TO RECOVER DOCTORS SAID MR BATTEN 57 YEARS OLD SUFFERED HEAD TRAUMA AND A BROKEN ANKLE WHEN THE CAR HE WAS DRIVING SUNDAY EVENING LOST CONTROL AND CRASHED INTO A CONCRETE LIGHT POLE NO OTHER VEHICLES WERE INVOLVED MR BATTEN A 35YEAR VETERAN OF THE MIAMIBASED MEDIA COMPANY APPEARED TO HAVE BLACKED OUT BEFORE IMPACT AND DOCTORS INITIALLY THOUGHT THAT MAY HAVE BEEN CAUSED BY A SEIZURE WHILE HE REMAINED IN JACKSON MEMORIAL HOSPITAL'S INTENSIVECARE UNIT IN MIAMI MR BATTEN WAS RESPONDING TO VOICE COMMANDS AND CONTINUING TO SHOW IMPROVEMENT YESTERDAY ACCORDING TO THE NURSE CARING FOR HIM DOCTORS SAID THEY EXPECT MR BATTEN TO BE MOVED FROM INTENSIVE CARE IN SEVEN TO 10 DAYS KNIGHTRIDDER'S PRESIDENT ANTHONY RIDDER AGE 53 WILL ASSUME MR BATTEN'S RESPONSIBILITIES UNTIL HE RETURNS ACCORDING TO THE COMPANY THE COMPANY OWNS A STRING OF DAILY NEWSPAPERS INCLUDING THE MIAMI HERALD AND THE PHILADELPHIA INQUIRER IN RECENT YEARS KNIGHTRIDDER HAS MADE MAJOR FORAYS INTO ELECTRONIC PUBLISHING THE COMPANY ALSO HOLDS A MINORITY POSITION IN TKR CABLE A CABLETV OPERATOR IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE KNIGHTRIDDER SHARES ROSE 375 CENTS TO 5575 9310190157 931019 TECHNOLOGY GENENTECH PROGRAM TO LINK SCIENTISTS WITH TEACHERS SOUTH SAN FRANCISCO CALIF GENENTECH INC IS SLATED TO UNVEIL TODAY A THREEYEAR 10 MILLION PROGRAM LINKING HIGHSCHOOL BIOLOGY TEACHERS WITH COMPANY SCIENTISTS IN A PROGRAM CALLED ACCESS EXCELLENCE THE BIOTECHNOLOGY COMPANY SAID IT PLANS TO PROVIDE FREE LAPTOP COMPUTERS TO 100 BIOLOGY TEACHERS TO PARTICIPATE IN A NETWORK LINKING THEM WITH THEIR PEERS AND WITH SCIENTIFIC EXPERTS THE NETWORK IS DESIGNED TO PROVIDE THE TEACHERS WITH REALTIME ANSWERS TO CLASSROOM QUESTIONS ABOUT STATEOFTHEART BIOLOGY AND GENETICENGINEERING ISSUES GENENTECH SAID PARTICIPATING TEACHERS WILL BE SELECTED BY THE NATIONAL SCIENCE TEACHERS ASSOCIATION BASED ON THEIR PERFORMANCE AND INVOLVEMENT IN ADVANCED SECONDARYSCHOOL BIOLOGY 9310190156 931019 LETTERS TO THE EDITOR WE'RE DECLARING WAR GET ME CENTRAL CASTING' I'VE ALWAYS THOUGHT IT WAS SOMEWHAT BAD FORM FOR THE REVIEWED TO REPLY TO REVIEWERS AND I HAVE NEVER DONE SO ACTUALLY I HAVE NO COMPLAINT ABOUT THE CRITIQUE I'M QUITE GRATIFIED TO BE REVIEWED SO PROMINENTLY IN THE JOURNAL DC HOLLYWOOD IN CAHOOTS BY LEE LESCAZE LEISURE & ARTS SEPT 21 I THOUGHT MR LESCAZE'S JUDGMENT WAS FAIR BUT AS MY BOOK AMERICAN HERO IS A PECULIAR HYBRID OF FACT AND FICTION OR AT LEAST FACTOIDS AND AN ALTERNATE REALITY I WANT TO ADDRESS ONE ISSUE OF FACT AMERICAN HERO PURSUES THE THESIS IN FICTIONAL NARRATIVE THAT THE GULF WAR WAS A MADEFORTV MOVIE NOT LIKE A MADEFORTV MOVIE BUT ACTUALLY ONE LITERALLY ONE LEE LESCAZE FEELS THE FLAW IN MY THESIS IS WHY WOULD WASHINGTON NEED HOLLYWOOD TO DIRECT AND WRITE SUCH A SCENARIO DON'T WE ALREADY HAVE THE CENTRAL INTELLIGENCE AGENCY THE CIA DOES OPERATE UNDER REAL LEGAL RESTRICTIONS AND CONGRESS DOES HAVE OVERSIGHT FOR A MEMBER OF THE CIA TO DO THINGS THAT ARE ILLEGAL FOR THE CIA TO DO IS TO OPEN THAT INDIVIDUAL TO PROSECUTION THAT IS WHY WHEN THE EXECUTIVE BRANCH WANTS TO DO THINGS THAT ARE NOT LEGAL THAT THEY DO NOT WANT TO SHARE WITH CONGRESS THE REALLY FUN THINGS THEY NOW REACH OUTSIDE ESTABLISHED CHANNELS TO BACK CHANNELS WHEN WILLIAM CASEY WAS HEAD OF THE CIA HE REACHED OUTSIDE THE CIA IN ORDER TO PURSUE HIS MOST CHERISHED PROJECTS TO OLIVER NORTH MOST NOTORIOUSLY BUT TO OTHERS AS WELL AMONG THOSE OTHERS AS REPORTED IN IN THE LOOP BUSH'S SECRET MISSION BY MURRAY WAAS AND CRAIG UNGER IN THE NEW YORKER NOV 2 1992 WHICH IS REFERRED TO IN ONE OF MY FOOTNOTES WAS THENVICE PRESIDENT BUSH CASEY USED HIM DURING THE IRANIRAQ WAR WHEN HE WANTED SADDAM HUSSEIN TO BOMB DEEP INSIDE IRAN TO CREATE LEVERAGE IN THE ARMSFORHOSTAGES NEGOTIATIONS FURTHERMORE THE THESIS OF THE BOOK IS THAT MODERN OR AT LEAST POSTVIETNAM WAR IS A MATTER OF IMAGES AND THE CIA WHILE IT MAY OR MAY NOT BE A MASTER OF INTELLIGENCE GATHERING IS NOT EXACTLY A MASTER OF IMAGE MAKING NOR IS THE NATIONAL SECURITY COUNCIL WHY WOULD WASHINGTON NEED HOLLYWOOD BECAUSE WHEN THEY TRIED TO MAKE A GOOD CONTEMPORARY WAR ON THEIR OWN THEY FAILED THE BOMBING OF LIBYA THE MARINES IN LEBANON THE INVASIONS OF GRENADA AND PANAMA AS A MEDIA EVENT DESERT STORM WAS SO VASTLY SUPERIOR A PRODUCTION IT IS ALMOST IMPOSSIBLE TO BELIEVE IT WAS WRITTEN AND DIRECTED BY THE SAME CREATIVE TEAM 9310190155 931019 SBS PLANS TO ACQUIRE IWL ALBUQUERQUE NM SBS ENGINEERING INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE IWL COMMUNICATIONS INC OF HOUSTON TERMS WERE NOT DISCLOSED THE CLOSING OF THE ACQUISITION WHICH IS EXPECTED TO OCCUR BEFORE JAN 1 IS SUBJECT TO THE NEGOTIATION OF A DEFINITIVE PURCHASE AGREEMENT SBS SAID IWL COMMUNICATIONS IS EXPECTED TO ADD ABOUT 12 MILLION A YEAR TO ITS REVENUE SBS ENDED ITS 1993 FISCAL YEAR IN JUNE WITH ABOUT 19 MILLION IN REVENUE IWL COMMUNICATIONS SUPPLIES RADIO MICROWAVE AND SATELLITE COMMUNICATIONS SYSTEMS TO THE PETROLEUM INDUSTRY WORLDWIDE 9310190154 931019 SYSTEM INDUSTRIES TO BE BOUGHT MILPITAS CALIF SYSTEM INDUSTRIES INC SAID IT AGREED TO BE ACQUIRED BY MTI TECHNOLOGY CORP OF ANAHEIM CALIF FOR AN UNDISCLOSED AMOUNT OF CASH AND PROMISSORY NOTES SYSTEM INDUSTRIES SAID IT PLANS TO FILE FOR CHAPTER 11 BANKRUPTCY PROTECTION FROM CREDITORS AS A PRELUDE TO THE ACQUISITION WHICH IS TO BE COMPLETED BY THE END OF THE YEAR CLOSELY HELD MTI SAID IT PLANS TO GO PUBLIC SHORTLY AFTER THE ACQUISITION BOTH COMPANIES MAKE COMPUTER STORAGE SYSTEMS SUCH AS DISK DRIVES 9310190153 931019 WHO'S NEWS COLUMBIA HOUSE CO COLUMBIA HOUSE CO NEW YORK RICHARD C WOLTER 48 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS DIRECT MARKETER OF RECORDED MUSIC AND VIDEOS MR WALTER WILL SUCCEED CORNELIUS NEIL F KEATING 68 AS CHAIRMAN AT THE END OF THE YEAR COLUMBIA HOUSE IS A 5050 PARTNERSHIP BETWEEN SONY CORP'S SONY MUSIC ENTERTAINMENT INC AND TIME WARNER INC'S WARNER MUSIC GROUP INC 9310190152 931019 CANANDAIGUA WINE CO CANANDAIGUA NY CANANDAIGUA WINE CO SAID IT WILL REDEEM ON NOV 19 ALL OF ITS 7 CONVERTIBLE SUBORDINATED DEBENTURES OUTSTANDING DUE 2011 THE COMPANY HAS 54453000 AGGREGATE PRINCIPAL AMOUNT OF THE DEBENTURES OUTSTANDING THE DEBENTURES CAN BE REDEEMED FOR CASH OR SHARES PRIOR TO NOV 19 THE NOTES ARE CONVERTIBLE INTO SHARES OF CLASS A COMMON STOCK AT A CONVERSION PRICE OF 1822 A SHARE OR ABOUT 54885 SHARES PER 1000 PRINCIPAL AMOUNT OF THE NOTES IF ALL THE NOTES ARE CONVERTED THE NUMBER OF CLASS A COMMON SHARES OUTSTANDING WILL INCREASE BY ABOUT 2988600 SHARES AFTER NOV 19 CANANDAIGUA WILL REDEEM ALL REMAINING NOTES AT A CASH PRICE OF 102100 PLUS ACCRUED INTEREST OF 2683 PER 1000 PRINCIPAL AMOUNT 9310190151 931019 WHO'S NEWS LCI INTERNATIONAL INC LCI INTERNATIONAL INC DUBLIN OHIO JOSEPH A LAWRENCE 44 YEARS OLD FORMER SENIOR VICE PRESIDENT OF FINANCE AT MCI COMMUNICATIONS CORP WAS NAMED SENIOR VICE PRESIDENT OF FINANCE AND DEVELOPMENT AND CHIEF FINANCIAL OFFICER OF THIS TELECOMMUNICATIONS CONCERN HE SUCCEEDS LARRY E WOLFE AS CHIEF FINANCIAL OFFICER WHO WAS NAMED CHIEF ACCOUNTING AND ADMINISTRATIVE OFFICER 9310190150 931019 WHO'S NEWS PERFECTDATA CORP PERFECTDATA CORP SIMI VALLEY CALIF JOSEPH MAZIN ACTING CHAIRMAN WAS NAMED TO THE ADDITIONAL POSTS OF PRESIDENT AND CHIEF EXECUTIVE OFFICER MR MAZIN 47 YEARS OLD IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF FLAMEMASTER CORP A MAKER OF FLAMERETARDANT COATINGS THAT HOLDS A 284 STAKE IN PERFECTDATA WHICH MAKES A BROAD LINE OF COMPUTER CARE AND MAINTENANCE PRODUCTS HE SUCCEEDS LEE R MANNEHEIMER 50 WHO IS ON AN EXTENDED LEAVE OF ABSENCE A COMPANY SPOKESWOMAN SAID 9310190149 931019 PRIME MEDICAL SERVICES DEAL AUSTIN TEXAS PRIME MEDICAL SERVICES INC SAID IT ACQUIRED FOUR LITHOTRIPTER OPERATIONS FROM THREE TENNESSEE MEDICAL PARTNERSHIPS IN EXCHANGE FOR 44 MILLION NEWLY ISSUED SHARES OF ITS COMMON STOCK THE COMPANY SAID THE LITHOTRIPTERS WHICH USE SOUND WAVES TO BREAK UP KIDNEY STONES GENERATE COMBINED ANNUAL REVENUE OF ABOUT 4 MILLION THE NONMEDICAL MANAGEMENT SERVICES CONCERN SAID THE TRANSACTION INCREASED ITS SHARES OUTSTANDING TO 144 MILLION PRIME MEDICAL SAID ITS SHARES WERE TRADING AT 3375 EACH AT THE TIME OF THE TRANSACTION GIVING THE ACQUISITION A VALUE OF ALMOST 149 MILLION YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING PRIME MEDICAL'S COMMON SKIDDED 25 CLOSING AT 2625 OFF 875 CENTS ON VOLUME OF 84400 SHARES 9310190148 931019 JP MORGAN CUTS PRIME RATE TO 55 BUT OTHER BIG BANKS HAVE YET TO FOLLOW BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JP MORGAN & CO BECAME THE FIRST BIG BANK IN OVER A YEAR TO CUT ITS PRIME LENDING RATE ALTHOUGH IT'S UNCLEAR WHETHER THE INDUSTRY AS A WHOLE WILL FOLLOW SUIT MORGAN THE PARENT OF MORGAN GUARANTY TRUST CO LOWERED ITS PRIME LENDING RATE TO 55 FROM 6 CITING SLUGGISH LOAN DEMAND AND THE WIDE GAP BETWEEN LENDING RATES AND THE BANK'S OWN COST OF FUNDS HOWEVER NO OTHER BIG BANK MATCHED THE CUT IMMEDIATELY SURPRISING SOME ECONOMISTS AND BANK ANALYSTS MORGAN'S MOVE IN FACT SPARKED SOME DISGRUNTLEMENT IN THE BANKING INDUSTRY AND ON WALL STREET BECAUSE MOST OF ITS LENDING IS TO CORPORATIONS MORGAN IS PROBABLY THE ONLY BANK IN THE COUNTRY THAT HAS NO LOANS PEGGED TO THE PRIME RATE THUS THE RATE CUT WILL NOT AFFECT ITS OWN PROFITS IT'S A MISCHIEVOUS ACT ON THEIR PART SAID LAWRENCE COHN AN ANALYST AT PAINEWEBBER THERE'S NO IMPACT ON THEMSELVES BUT IT PUTS PRESSURE ON ALL THEIR COMPETITORS ADDED DAVID BERRY DIRECTOR OF RESEARCH AT KEEFE BRUYETTE & WOODS INC A BANK RESEARCH FIRM MORGAN HAS CUT THE PRICE OF SOMETHING IT DOES NOT SELL THE PRIME RATE IS THE BENCHMARK FOR MOST SMALLBUSINESS LOANS AND INCREASINGLY CONSUMER LOANS SUCH AS HOME EQUITY LOANS AND CREDIT CARDS THUS IF OTHER BANKS FOLLOW SUIT A LOWER PRIME RATE WOULD MAINLY HELP CONSUMERS AND SMALL BUSINESSES MOST BANKS HOWEVER HAVE BEEN RELUCTANT TO CUT THE PRIME RATE EVEN THOUGH THEIR OWN COST OF FUNDS IS ABOUT 3 LEAVING THEM WITH HISTORICALLY WIDE PROFIT MARGINS ON LOANS AND INVESTMENTS BUSINESS LOAN DEMAND HOWEVER HAS BEEN SPORADIC SO THAT IF BANKS LOWER THEIR PRIME RATES NOW THEY FACE THE PROSPECT OF MODESTLY SHRINKING PROFIT MARGINS BANK STOCKS TUMBLED YESTERDAY IN PART BECAUSE OF CONCERN THAT A LOWER PRIME WOULD HURT FUTURE PROFITS IT'S SOMEWHAT SURPRISING THAT OTHER BANKS WOULDN'T FOLLOW MORGAN'S EXAMPLE SAID JOHN LONSKI SENIOR ECONOMIST AT MOODY'S INVESTORS SERVICE INC PERHAPS THEY'RE TELLING US THAT WHAT THEY EXPECT TO GAIN IN BUSINESS LENDING VOLUME WOULDN'T BE GREAT ENOUGH TO OFFSET NARROWER MARGINS FROM A LOWER PRIME HE SAID A SPOKESMAN FOR MORGAN SAID THE BANK CONSIDERED AMONG OTHER FACTORS THE RECENT IMPROVEMENT IN INFLATION WEIGHING ALL THE RELEVANT FACTORS WE CONSIDERED THE CHANGE TO 55 APPROPRIATE THE SPOKESMAN SAID ALTHOUGH MOST BANKS DIDN'T DISCLOSE WHAT THEY PLANNED TO DO ABOUT THE PRIME RATE CHEMICAL BANKING CORP HAS DECIDED AGAINST CUTTING ITS RATE FOR NOW BANK OFFICIALS SAID CHEMICAL HAS AN ESTIMATED 135 BILLION IN LOANS TIED TO PRIME ACCORDING TO ANALYSTS A HALFPOINT CUT WOULD REDUCE EARNINGS BY NO MORE THAN 24 MILLION OR AROUND EIGHT CENTS A SHARE THE CHEMICAL SPOKESMAN SAID KEEFE BRUYETTE CONCLUDED THAT A PRIME RATE CUT WOULD REDUCE NEXT YEAR'S EARNINGS AT BIG BANKS BY 3 TO 4 WHICH APPEARS TO BE LESS THAN STOCK INVESTORS FEAR AND THAT ASSUMES NO GROWTH IN LOANS ON THEIR BOOKS BANKERS HAVE POINTED OUT THAT WHILE LONGERTERM INTEREST RATES ARE FALLING TO NEW LOWS SHORTTERM RATES HAVEN'T BUDGED MUCH GIVEN THAT LOAN DEMAND BY BUSINESSES HAS REMAINED WEAK BANKS HAVE BEEN ABLE TO KEEP THE PRIME RATE WELL ABOVE THE HISTORICAL AVERAGE OF ABOUT 15 PERCENTAGE POINTS OVER THE FEDERALFUNDS RATE FATTENING PROFIT MARGINS BUT AS LONGTERM RATES SUCH AS THAT ON 30YEAR US TREASURY SECURITIES FELL TO 30YEAR LOWS OF 575 A 6 PRIME RATE STICKS OUT LIKE A SORE THUMB MORGAN'S PRIME RATE CUT COMES AS BANKS ARE AGGRESSIVELY COURTING NEW CONSUMER AND COMMERCIAL BUSINESS AND DEMAND FOR CONSUMER LOANS IS PICKING UP TOTAL LOANS AT ALL COMMERCIAL BANKS ROSE 55 BILLION OR 3 IN THE PAST YEAR WITH VIRTUALLY ALL THE GAINS COMING FROM AN INCREASE IN CONSUMER BORROWING BUT AMONG LARGE CORPORATIONS BORROWING REMAINS WEAK SYNDICATED LOAN VOLUME SLID 24 IN THE THIRD QUARTER TO 79 BILLION ACCORDING TO LOAN PRICING CORP A NEW YORK FIRM SPECIALIZING IN COMMERCIAL LENDING ANALYSIS 9310190147 931019 WHO'S NEWS SMITHKLINE BEECHAM CORP SMITHKLINE BEECHAM CORP PHILADELPHIA JAMES BEERY 52 YEARS OLD WAS NAMED GENERAL COUNSEL AND CORPORATE SECRETARY OF THIS HEALTHCARE AND PHARMACEUTICAL CONCERN EFFECTIVE NEXT JANUARY MR BEERY SUCCEEDS FERGUS BALFOUR 60 WHO IS RETIRING AT YEAR END 9310190146 931019 WHO'S NEWS WALT DISNEY CO WALT DISNEY CO BURBANK CALIF JERE R HAUSFATER 41 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT ACQUISITIONS AND BUSINESS AFFAIRS FOR THIS ENTERTAINMENT COMPANY'S BUENA VISTA WORLDWIDE THEATRICAL DISTRIBUTION AND HOME VIDEO OPERATIONS MR HAUSFATER WHO DISNEY SAID WAS INSTRUMENTAL IN ARRANGING THE COMPANY'S DISTRIBUTION AGREEMENT WITH JIM HENSON VIDEO AND ITS ACQUISITION OF MIRAMAX FILMS CORP PREVIOUSLY WAS A VICE PRESIDENT 9310190145 931019 MARKETING & MEDIA ARBITRON TV RATINGS SERVICE TO END LEAVING RIVAL NIELSEN AS SOLE PROVIDER BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ARBITRON CO SAID IT WILL SHUT DOWN ITS SERVICE THAT PROVIDES RATINGS FOR LOCAL TELEVISION STATIONS AT THE END OF THE YEAR LEAVING NIELSEN MEDIA RESEARCH A UNIT OF DUN & BRADSTREET CORP WITH A VIRTUAL MONOPOLY ARBITRON'S MOVE WILL RESULT IN LAYOFFS OF 700 OF THE COMPANY'S 1200 EMPLOYEES MINNEAPOLISBASED PARENT COMPANY CERIDIAN CORP WILL TAKE A ONETIME CHARGE OF 67 MILLION TO ACCOUNT FOR THE SHUTDOWN ARBITRON DECIDED TO PULL THE PLUG ON THE TV RATINGS BUSINESS WHICH THE COMPANY HAD BEEN IN SINCE 1949 BECAUSE WE DECIDED WE WEREN'T GOING TO BE ABLE TO MAKE ANY MONEY IN IT SAID ARBITRON PRESIDENT STEPHEN MORRIS ALTHOUGH ARBITRON IS SUCCESSFUL IN ITS RADIOSTATION RATINGS SERVICE THE TELEVISION RATINGS BUSINESS HAS BEEN LOSING SUBSTANTIAL SUMS OF MONEY FOR SEVERAL YEARS MR MORRIS SAID ARBITRON ALSO RECENTLY ABANDONED A PLAN TO PROVIDE NATIONAL TELEVISION RATINGS MR MORRIS SAID ARBITRON'S PROBLEMS STEMMED FROM CHANGES IN THE INDUSTRY THAT BEGAN IN THE MID1980S AS LOCAL STATIONS STRAPPED FOR MONEY INCREASINGLY CHOSE TO TAKE EITHER NIELSEN OR ARBITRON'S RATINGS SERVICE BUT NOT BOTH THE STATIONS USE THE RATINGS TO SET AD RATES CURRENTLY ARBITRON HAS 180 STATION CLIENTS THAT USE ITS SERVICE EXCLUSIVELY COMPARED WITH 359 EXCLUSIVE NIELSEN CLIENTS ANOTHER 275 STATIONS PAY FOR BOTH NIELSEN IS EXPECTED TO PICK UP MOST OF THE ARBITRONEXCLUSIVE CLIENTS MANY OF WHOM ARE IN SMALLER MARKETS BUT THE PROSPECT OF A NIELSEN MONOPOLY HAS PEOPLE FRETTING NO CHOICE IS NO GOOD THERE'S A NEED FOR PRESSURE TO IMPROVE QUALITY SAID NICHOLAS SCHIAVONE A VICE PRESIDENT AT NBC GIVEN THE INCREASED REVENUE NIELSEN WILL HAVE AS A RESULT OF THE SITUATION OUR HOPE IS THAT THEY WILL BE USED TO IMPROVE THE QUALITY OF ITS MEASUREMENT CBS INC WHICH HAS CONSISTENTLY SUPPORTED ALTERNATIVE SERVICES TO NIELSEN EXPRESSED DISAPPOINTMENT NOW WE ARE FACED WITH NO COMPETITION AT A TIME WHEN THE CHALLENGES ARE GOING TO BE IMMENSE GIVEN THE NEW TECHNOLOGICAL CHANGES THE INDUSTRY IS EXPERIENCING SAID DAVID POLTRACK A CBS SENIOR VICE PRESIDENT THE PROSPECT OF HAVING A MONOPOLISTIC SUPPLIER IN A COMPLEX ENVIRONMENT IS NOT A VERY POSITIVE ONE JOHN DIMLING PRESIDENT AND CHIEF OPERATING OFFICER OF NIELSEN MEDIA RESEARCH SAID THE COMPANY DOESN'T INTEND TO EXPLOIT THE SITUATION NOT ONLY BECAUSE WE KNOW EVERYBODY WILL BE WATCHING BUT BECAUSE OF OUR OWN VALUE SYSTEM HE SAID NIELSEN WANTS TO IMPROVE THE QUALITY OF ITS SERVICE CONCEPTUALLY WE UNDERSTAND THE NEED TO DO THAT HE SAID ADDING WE TAKE THE RESPONSIBILITY TO PROVIDE QUALITY RATINGS VERY SERIOUSLY CERIDIAN SAID IT WILL TAKE THE 67 MILLION RESTRUCTURING CHARGE OF WHICH 13 MILLION TO 15 MILLION IS CASH FOR FUTURE SEVERANCE PAYMENTS AND THE REST IS FOR PREVIOUSLY PURCHASED EQUIPMENT IN ITS FOURTH QUARTER IN THIRDQUARTER RESULTS REPORTED YESTERDAY CERIDIAN SAID NET INCOME ROSE 15 TO 107 MILLION OR 25 CENTS A SHARE COMPARED WITH 93 MILLION OR 22 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 28 TO 2089 MILLION COMPARED WITH 2032 MILLION IN THE THIRD QUARTER OF 1992 CERIDIAN CHAIRMAN AND CHIEF EXECUTIVE LAWRENCE PERLMAN SAID THE COMPANY GAVE THE ARBITRON TV OPERATION EVERY POSSIBLE CHANCE BUT THINGS DETERIORATED PRETTY QUICKLY THIS YEAR IT DIDN'T LOOK LIKE ANY REASONABLE AMOUNT OF INVESTMENT WOULD RETURN IT TO PROFITABILITY HE SAID ARBITRON WILL CONCENTRATE ON RADIO WHICH HAS GROWTH POTENTIAL AND A NEW LOCALMARKET SERVICE PROVIDING CUSTOMIZED QUALITATIVE DATA THE NEW QUALITATIVE SERVICE CURRENTLY IN TESTS WILL COMBINE VIEWING AND LISTENING DATA WITH INFORMATION ON WHAT CONSUMERS BUY IT IS EXPECTED TO BE UNVEILED IN JANUARY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CERIDIAN CLOSED AT 19125 DOWN 25 CENTS 9310190144 931019 WHO'S NEWS HOST MARRIOTT ELECTS DIRECTOR WASHINGTON HOST MARRIOTT CORP FORMERLY MARRIOTT CORP SAID ANDREW YOUNG 61 YEARS OLD WAS ELECTED A DIRECTOR SUCCEEDING MARRIOTT CORP COFOUNDER ALICE S MARRIOTT 86 WHO BECAME DIRECTOR EMERITUS MR YOUNG VICE CHAIRMAN OF LAW COMPANIES GROUP INC WAS US AMBASSADOR TO THE UNITED NATIONS UNDER PRESIDENT CARTER HOST MARRIOTT OWNS HOTELS AND RETIREMENT COMMUNITIES AND OPERATES AIRPORT AND TOLLROAD CONCESSIONS SEPARATELY ROGER W SANT 62 WAS ELECTED TO SUCCEED MRS MARRIOTT ON THE BOARD OF MARRIOTT INTERNATIONAL INC A LODGING AND SERVICES MANAGEMENT CONCERN THAT WAS SPUN OFF FROM HOST MARRIOTT MR SANT IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AES CORP 9310190143 931019 BUSINESS BRIEF CIBAGEIGY LTD US UNIT TO PAY 60 MILLION TO CLEAN UP GROUNDWATER THE ENVIRONMENTAL PROTECTION AGENCY SAID CIBAGEIGY CORP AGREED TO PAY 60 MILLION TO CLEAN UP CONTAMINATED GROUNDWATER AT ITS FACILITY NEAR TOMS RIVER NJ CIBAGEIGY ALSO AGREED TO REIMBURSE THE EPA FOR 10 MILLION IT SPENT ON ACTIVITIES RELATED TO CLEANING UP THE SUPERFUND SITE THE COMPANY SAID THE PLANT HAD CONTRIBUTED TO A BUILDUP OF CHLORINERELATED CONTAMINANTS IN THE AREA AS PART OF THE PLAN CIBAGEIGY WILL HIRE A PRIVATE CONTRACTOR TO PERFORM THE CLEANUP UNDER EPA SUPERVISION GROUNDWATER WILL BE EXTRACTED TREATED AND THEN RECHARGED INTO UNDERLYING GROUNDWATER CIBAGEIGY ARDSEY NY IS THE US UNIT OF THE SWISS PHARMACEUTICAL AND CHEMICALS CONCERN CIBAGEIGY LTD THE COMPANY SAID COSTS WOULD BE COVERED BY PREVIOUSLY RECORDED ENVIRONMENTAL RESERVES 9310190142 931019 BUSINESS BRIEF LIZ CLAIBORNE'S EARNINGS SLUMPED 41 IN 3RD QUARTER AND POOR YEAR IS SEEN NEW YORK BURDENED WITH EXCESS INVENTORY AND HIGHER RETAIL MARKDOWNS LIZ CLAIBORNE INC REPORTED A 41 DROP IN THIRDQUARTER EARNINGS AND JOLTED WALL STREET BY PROJECTING THAT ITS EARNINGS FOR THE FULL YEAR WILL BE ABOUT 40 BELOW THE 1992 LEVEL THE WOMEN'S APPAREL MAKER AS EXPECTED REPORTED THIRDQUARTER NET INCOME OF 383 MILLION OR 47 CENTS A SHARE DOWN FROM 645 MILLION OR 77 CENTS A SHARE A YEAR EARLIER THE LATEST PERIOD INCLUDES A CHARGE OF 18 MILLION RELATED TO HIGHER INCOME TAX RATES FOR THE FIRST NINE MONTHS OF 1993 THIRDQUARTER SALES WERE ESSENTIALLY FLAT AT 6219 MILLION COMPARED WITH 6183 MILLION A YEAR EARLIER FOR THE NINE MONTHS NET FELL 33 TO 112 MILLION OR 137 A SHARE FROM 1669 MILLION OR 198 A SHARE A YEAR EARLIER SALES WERE 166 BILLION COMPARED WITH 164 BILLION BASED ON THE COMPANY'S ESTIMATE CLAIBORNE'S NET INCOME FOR ALL OF 1993 WILL BE ABOUT 130 MILLION OR 157 A SHARE IN 1992 THE COMPANY HAD NET INCOME OF 2188 MILLION OR 261 A SHARE ON SALES OF 22 BILLION THE FORECAST PUSHED CLAIBORNE SHARES DOWN 1125 OR 53 TO 20 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE LAST SUMMER CLAIBORNE DISCLOSED THAT FALL WHOLESALE ORDERS FROM STORES HAD FALLEN SHORT OF PROJECTIONS SADDLING IT WITH EXCESS INVENTORY IN ITS ANNOUNCEMENT YESTERDAY THE COMPANY CITED LOWERTHANANTICIPATED BOOKINGS AND DELAYED SHIPMENTS OF SPRING MERCHANDISE AS FURTHER ERODING THIRDQUARTER RESULTS AT THE END OF SEPTEMBER CLAIBORNE'S EXCESS INVENTORIES STOOD AT ABOUT 400 MILLION COMPARED WITH 300 MILLION IN 1992 ACCORDING TO SAMUEL MILLER ITS CHIEF FINANCIAL OFFICER CLAIBORNE IS NOW RESTRUCTURING OPERATIONS IN ORDER TO FACILITATE DELIVERIES AIMING TO TURN AROUND STORE ORDERS IN WEEKS INSTEAD OF MONTHS LIZ IS GOING THROUGH A FUNDAMENTAL STRATEGIC SHIFT THAT COULD TAKE A LONG TIME FOR IT TO GET BACK TO ITS HISTORIC PROFITABILITY SAID TODD SLATER AN ANALYST AT UBS SECURITIES THE COMPANY'S CURRENT PROFIT MARGINS ARE AROUND 35 HE NOTED COMPARED WITH 40 IN 1991 DEBORAH BRONSTON AN ANALYST AT PRUDENTIAL SECURITIES ADDED I'M VERY DISAPPOINTED WITH INVENTORIES UP AND WITH SALES NOT GROWING THE OUTLOOK FOR THE COMPANY IS BLEAK THE FACT THAT CLAIBORNE'S FULLPRICED RETAIL SALES HAVEN'T PICKED UP THIS FALL SHE SAYS INDICATES THAT ITS RETAIL SALES ON THE FIRST DELIVERIES OF SPRING MERCHANDISE WON'T BE THAT GREAT EITHER 9310190141 931019 PEPPERAND SALT AND EACH QUARTER SHOWS NEW HIGHS EXCEPT FOR THE LOSS IN NET I'D CALL QUEEN ISABELLA 9310190140 931019 WHO'S NEWS MENTOR GRAPHICS CORP MENTOR GRAPHICS CORP WILSONVILLE ORE WALDEN WALLY C RHINES 46 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS COMPANY WHICH MAKES SOFTWARE USED TO DESIGN SEMICONDUCTORS PRINTED CIRCUIT BOARDS AND COMPUTER SYSTEMS MR RHINES IS A 21YEAR VETERAN OF TEXAS INSTRUMENTS INC WHO DIRECTED THE COMPANY'S CHIP BUSINESS AS EXECUTIVE VICE PRESIDENT OF ITS SEMICONDUCTOR GROUP HE SUCCEEDS THOMAS H BRUGGERE 47 WHO WILL REMAIN CHAIRMAN MR RHINE WILL ALSO TAKE A SEAT ON THE BOARD WHICH EXPANDS TO SEVEN TEXAS INSTRUMENTS SAID PAT WEBER EXECUTIVE VICE PRESIDENT AND PRESIDENT OF THE COMPONENTS SECTOR WHO SHARED CHIP RESPONSIBILITY WITH MR RHINE WILL CONTINUE TO OVERSEE THAT OPERATION 9310190139 931019 AMERICANS SNAP UP SECURITIES OVERSEAS AT RECORD PACE BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON PULLED BY BOOMING OVERSEAS STOCK MARKETS AND PUSHED BY LOW US INTEREST RATES AMERICANS ARE GOBBLING UP FOREIGN SECURITIES AT A RECORD PACE THIS HUGE WALL OF MONEY FROM AMERICAN INVESTORS IN THE WORDS OF ADALINE KO A DIRECTOR AT FLEMING INVESTMENT MANAGEMENT LTD HERE WILL CONTINUE POURING INTO OVERSEAS MARKETS MONEY MANAGERS AND ANALYSTS PREDICT BUT THEY ALSO WARN THAT A RISE IN US INTEREST RATES DISAPPOINTING EARNINGS GROWTH ESPECIALLY IN EUROPE AND A GLOBAL SHIFT TOWARD PROTECTIONIST TRADE POLICIES COULD UPSET STOCK MARKETS AND INDUCE US INVESTORS TO PULL BACK IN THE SECOND QUARTER OF THIS YEAR US INVESTORS PURCHASED A RECORD NET 132 BILLION OF FOREIGN STOCKS ACCORDING TO THE SECURITIES INDUSTRY ASSOCIATION OR SIA IT MARKED THE 20TH CONSECUTIVE QUARTER THAT AMERICANS HAVE ADDED SHARES TO THEIR PORTFOLIOS IN COMPANIES SUCH AS BRITISH DRUG GIANT GLAXO HOLDINGS PLC MEXICAN TELEPHONE CONCERN TELEFONOS DE MEXICO SA AND NV ROYAL DUTCH PETROLEUM CO DURING THAT PERIOD US INVESTORS HAVE BOUGHT 109 BILLION OF FOREIGN STOCKS LIFTING TOTAL OVERSEAS EQUITY HOLDINGS TO 210 BILLION US INVESTORS ALSO PURCHASED 273 BILLION OF FOREIGN BONDS IN THE FIRST HALF SURPASSING THE RECORD 219 BILLION THEY BOUGHT IN ALL OF 1990 THIS TORRID PACE SEEMS TO BE CONTINUING DURING THE LAST TWO MONTHS THE AMOUNT OF NEW CASH FLOWING INTO FOREIGN MUTUAL FUNDS HAS EXCEEDED 1 BILLION PER WEEK SAID MARCUS GRUBB AN INTERNATIONAL EQUITY STRATEGIST AT SALOMON BROTHERS INTERNATIONAL HERE IN ADDITION SOME GLOBAL FUNDS HAVE INCREASED THEIR WEIGHTING IN FOREIGN ASSETS TO OVER 20 HE ADDED THAT WHILE US INVESTORS EXPECTED FOREIGN MARKETS TO RISE EARLY THIS YEAR MANY HESITATED INVESTING ABROAD BECAUSE THEY FELT A RISING DOLLAR WOULD DIMINISH THOSE GAINS BUT THE DOLLAR HASN'T RISEN AS EXPECTED NOW THEY ARE CHASING AFTER THAT GROWTH SAID MR GRUBB NOTING THAT US PENSION FUNDS CURRENTLY HOLD ROUGHLY 6 TO 7 OF THEIR TOTAL ASSETS IN INTERNATIONAL STOCKS AND BONDS BOB MICHAELSON CHIEF GLOBAL INVESTMENT OFFICER FOR CITIBANK GLOBAL ASSET MANAGEMENT HERE SAID THAT MOST ARE TARGETING 10 AND SOME OF THE MOST SOPHISTICATED ARE UP TO 20 AMERICANS' NONUS STOCK PORTFOLIOS HAVE NEARLY DOUBLED DURING THE PAST TWO AND A HALF YEARS POINTED OUT DAVID STRONGIN DIRECTOR OF INTERNATIONAL FINANCE AT THE SIA IN NEW YORK AMERICANS ARE DIVERSIFYING THEIR EQUITY PORTFOLIOS AT A MUCH FASTER PACE THAN MANY EXPERTS HAD ANTICIPATED HE SAID ACCELERATING THE MOVE INTO FOREIGN SECURITIES IS THE COMBINATION OF SLOW US GROWTH LOW US INTEREST RATES AND THE EXPECTATION THAT FALLING INTEREST RATES IN EUROPE WILL FIRE UP STOCK AND BOND MARKETS THERE IN ADDITION MR STRONGIN OF THE SIA SAID THE ACTUAL AND PLANNED SELLOFF OF GOVERNMENTOWNED INDUSTRIES IN MANY COUNTRIES RELAXATION OF RESTRICTIONS ON FOREIGN INVESTMENT AND RAPID ECONOMIC GROWTH IN THE THIRD WORLD IS SERVING AS A POWERFUL ATTRACTION FOR US CAPITAL THERE ARE NUMEROUS INVESTMENT PRODUCTS IN THE US BUT IN THE LOWINTEREST RATE ENVIRONMENT A LOT OF THEM HAVE TURNED INTO WALLFLOWERS HE SAID MEANWHILE AMERICANS ARE LEARNING THAT IT ISN'T SUCH AN INSULAR WORLD OUT THERE AND THAT THERE ARE OPPORTUNITIES OUTSIDE OUR MARKETS DURING THE FIRST HALF OF THIS YEAR US INVESTORS PURCHASED A NET 217 BILLION OF FOREIGN STOCKS NEARLY DOUBLE THE AMOUNT THEY BOUGHT IN THE FIRST SIX MONTHS OF 1992 AND 67 OF THE TOTAL THEY BOUGHT IN ALL OF LAST YEAR A LITTLE MORE THAN HALF OF THE 217 BILLION WENT INTO EUROPEAN STOCK MARKETS WITH BRITISH SHARES ACCOUNTING FOR 52 BILLION AMERICANS' NEXTFAVORITE MAJOR FOREIGN MARKET WAS CANADA FOLLOWED BY JAPAN HONG KONG ITALY SPAIN AND GERMANY AMERICAN INVESTORS ALSO PURCHASED A NET 23 BILLION OF LATIN AMERICAN SHARES IN THE FIRST HALF INCLUDING 980 MILLION IN MEXICO THE 18 BILLION OF HONG KONG STOCKS THEY ADDED TO THEIR PORTFOLIOS IS ASTOUNDING GIVEN THAT THE HONG KONG STOCK MARKET IS ONEFOURTEENTH THE SIZE OF JAPAN'S IN WHICH AMERICANS INVESTED A NET 23 BILLION BECAUSE SO MANY HONG KONG COMPANIES DO BUSINESS IN CHINA AND HAVE MANUFACTURING FACILITIES THERE THE COLONY'S STOCK MARKET IS CONSIDERED A PLAY ON THE MAINLAND'S FASTGROWING ECONOMY SO FAR THE BET HAS PAID OFF HONG KONG SHARES ARE UP 57 THIS YEAR IN DOLLAR TERMS ACCORDING TO THE DOW JONES WORLD STOCK INDEX A RISING YEN WHICH INCREASES THE VALUE OF JAPANESE ASSETS WHEN TRANSLATED INTO DOLLARS HAS PROPELLED THE JAPANESE STOCK MARKET 47 HIGHER MEANWHILE GERMANY IS UP 30 ITALY 29 SPAIN 24 BRITAIN 12 AND CANADA 11 BY CONTRAST THE US COMPONENT OF THE DOW JONES WORLD INDEX HAS CLIMBED 77 WITH THE LOWER YIELDS ON CASH DEPOSITS IN THE STATES THE US STOCK AND BOND MARKETS HAVEN'T PERFORMED WELL AND US INVESTORS WERE LOOKING AROUND FOR ALTERNATIVE INVESTMENTS SAID RICHARD DAVIDSON A EUROPEAN STRATEGIST AT MORGAN STANLEY INTERNATIONAL HERE THE REASON THAT EUROPE GOT SO MUCH ATTENTION IS BECAUSE CONTINENTAL EUROPE REMAINED IN RECESSION INTEREST RATES WERE AT EXTREMELY HIGH LEVELS EARLY THIS YEAR AND THE BET THAT EVERYONE WAS FOLLOWING WAS THAT EUROPEAN INTEREST RATES HAD TO COME DOWN DRAMATICALLY HE SAID AMERICANS' GROWING COMFORT WITH INTERNATIONAL STOCKS AND BONDS COULD BE UPSET MONEY MANAGERS WARN BY AN EVENTUAL RISE IN US INTEREST RATES THAT WOULD INCREASE THE ATTRACTION OF US BONDS STRENGTHEN THE DOLLAR AND THEREFORE REDUCE THE VALUE OF FOREIGN SECURITIES HIGHER US RATES ALSO COULD SEND RUMBLES THROUGH EMERGING STOCK MARKETS THAT ARE CLOSELY TIED TO THE US ECONOMY AND CURRENCY MONEY MANAGERS ALSO WORRY THAT SOME OVERSEAS STOCK MARKETS MAY BE OVERVALUED NOTING THAT STOCKS IN EUROPE ARE SELLING AT AN AVERAGE OF 22 TIMES PROSPECTIVE 1993 EARNINGS COMPARED WITH A 10YEAR HISTORICAL AVERAGE OF ABOUT 145 MR DAVIDSON OF MORGAN STANLEY SAID THERE WILL BE EARNINGS GROWTH NEXT YEAR BUT IT STILL WON'T BE ENOUGH TO MAKE CURRENT VALUATIONS DEFENDABLE BUT EVEN THOSE WHO SEE RELATIVE BARGAINS IN EUROPE DON'T DISCOUNT A TEMPORARY US INVESTOR RETREAT RIGHT NOW COMPANIES IN EUROPE ARE AT LOWER LEVELS OF VALUATION THAN COMPARABLE US COMPANIES WITH SIMILAR GROWTH PROSPECTS SAID RICHARD MACE A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS IN BOSTON BUT HE ADDED THAT A SHARP RALLY IN EQUITY PRICES OR A SUBSTANTIAL DECLINE IN BOND YIELDS WOULD MAKE FOREIGN MARKETS LOOK RELATIVELY LESS ATTRACTIVE MR MACE SAID HE WOULDN'T BE SURPRISED TO SEE A 10 CORRECTION ANYTIME BUT HE QUICKLY ADDED THOSE CORRECTIONS ARE OFTEN BUYING OPPORTUNITIES 9310190138 931019 US SHOE WILL SELL LENSCRAFTERS IN UK TO UNIT'S FOUNDER CINCINNATI US SHOE CORP IN A MOVE THAT SHOWS ITS RESOLVE TO FOCUS ON ITS TROUBLED DOMESTIC BUSINESSES AGREED TO SELL THE UK OPERATIONS OF ITS LENSCRAFTERS OPTICAL BUSINESS THE DIVISION HAS HAD LOSSES OF ABOUT 5 MILLION A YEAR ANALYSTS ESTIMATE AS A RESULT US SHOE WILL TAKE A CHARGE OF 38 MILLION OR EIGHT CENTS A SHARE AGAINST EARNINGS FOR THE THIRD QUARTER ENDING OCT 30 RESULTS WILL BE REPORTED IN MIDTOLATE NOVEMBER A YEAR EARLIER US SHOE EARNED 81 MILLION OR 18 CENTS A SHARE ON SALES OF 6746 MILLION OF US SHOE'S NINE LENSCRAFTERS SUPERSTORES IN THE UK THE COMPANY WILL CLOSE TWO AND HAS SIGNED AN AGREEMENT TO SELL THE SEVEN OTHERS TO VISION EXPRESS UK A CLOSELY HELD OPTICAL RETAILER HEADED BY DEAN BUTLER WHO FOUNDED LENSCRAFTERS AND SOLD IT TO US SHOE IN 1984 TERMS WEREN'T DISCLOSED THE MOVE ALLOWS US SHOE TO DEVOTE MORE ENERGY TO TURNING AROUND ITS WOMEN'S APPAREL BUSINESS ANALYSTS SAID THEY HAD BEEN HOPING US SHOE WOULD EXIT THE UK LENSCRAFTERS OPERATIONS WHICH NEVER TURNED A PROFIT PARTLY BECAUSE THE OPERATIONS DIDN'T SELL ENOUGH TO OFFSET HIGH REALESTATE PRICES IN A STATEMENT US SHOE SAID IT HAD TOO FEW STORES IN THE UK TO SUPPORT THE COST OF DOING BUSINESS THERE WE JUST DIDN'T SEE IT AS A VIABLE INVESTMENT OPPORTUNITY TREASURER BOB PETRIK SAID INSTEAD THE COMPANY DECIDED TO FUND THOSE INVESTMENTS THAT GAVE US THE BIGGEST BANG FOR THE BUCK LENSCRAFTERS REMAINS US SHOE'S MOST PROFITABLE BUSINESS WITH ABOUT 430 STORES IN THE US AND ABOUT 60 STORES IN CANADA 9310190137 931019 WHO'S NEWS MCI COMMUNICATIONS CORP MCI COMMUNICATIONS CORP WASHINGTON THIS PROVIDER OF TELECOMMUNICATIONS SERVICES NAMED STEVE JOHNSON 42 YEARS OLD CONSUMER MARKETS VICE PRESIDENT OF NEW TECHNOLOGIES AND PRODUCT DEVELOPMENT A NEW POSITION 9310190136 931018 REPORT ON ASIA FROM SOAP TO LUXURY CARS CONSUMER TASTES DEVELOP BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL YAN ZHI YONG ONE OF ASIA'S EMERGING CONSUMERS IS ABOUT TO BUY INTO WHAT UNTIL THIS YEAR WAS A NOVEL CONCEPT IN CHINA BEAUTY SOAP IN THREE DIFFERENT FORMULAS FOR DRY NORMAL OR OILY SKIN I LIKE THE FRAGRANCE AND I HAVE OILY SKIN SAYS THE 25YEAROLD COMMERCIAL FISHERMAN FROM JIANGSU PROVINCE AS HE PLOPS DOWN 38 YUAN 66 CENTS FOR A BAR OF LUX AT THE SHANGHAI NO 1 DEPARTMENT STORE STATUSCONSCIOUS INCREASINGLY CONCERNED ABOUT HEALTH AND PERSONAL APPEARANCE AND HIGHLY RECEPTIVE TO ADVERTISERS' MESSAGES CONSUMERS SUCH AS MR YAN ARE PART OF THE REASON LUX SOAP A PRODUCT OF UNILEVER GROUP HAS BEEN A BESTSELLER IN CHINA THIS YEAR AND WHY IT IS EXPECTED TO BE ONE OF THE REGION'S HOTTESTSELLING PRODUCTS IN 1994 FROM SIMPLE BARS OF SOAP TO LUXURY CARS ASIANS WILL BE BUYING MORE CONSUMER GOODS THAN EVER IN 1994 AND A RECORD NUMBER OF LOCAL AND MULTINATIONAL MARKETERS WILL BE EVEN MORE EAGER TO WIN THEIR BUSINESS WHICH ITEMS WILL BE THE BIG SELLERS IN 1994 IF THERE IS ONE WORD TO DESCRIBE THE BIGGEST TREND IN ASIAN MARKETING IT IS CONVENIENCE THE REGION'S INCREASINGLY HARRIED CONSUMERS ARE LOOKING FOR WAYS TO SIMPLIFY THEIR LIVES AND ARE WILLING TO PAY FOR THE RIGHT SOLUTIONS CORY VENTURANSA A MOTHER OF THREE IN MANILA THE PHILIPPINES SAYS SHE DOESN'T MIND PAYING MORE FOR READYTODRINK JUICES THAT SAVE HER THE HASSLE OF PREPARING INDIVIDUAL SERVINGS FOR HER KINDERGARTENAGE DAUGHTER THE NEED TO SAVE TIME IS ALREADY REVOLUTIONIZING HOW ASIANS SHOP SELFSERVICE FOOD STORES AND CONVENIENCE CHAINS ARE REPLACING MOMANDPOP SHOPS AND STREET MARKETS FROM A HONG KONG BASE SUPERMARKET CHAINS WELLCOME AND PARK 'N SHOP AND THEIR AFFILIATE DRUGSTORE CHAINS MANNINGS AND WATSON'S ARE EXPANDING INTO SOUTHEAST ASIA CHINA AND TAIWAN SOUTHLAND CORP'S 7ELEVEN CONVENIENCESTORE CHAIN IS ALSO EXPANDING THROUGHOUT THE REGION WHILE JAPANESE DEPARTMENT STORES AND HONG KONG CLOTHING CHAINS ARE ALREADY ENSCONCED IN CHINA AND TAIWAN TIMESAVING PRODUCTS SUCH AS PROCTER & GAMBLE CO'S REJOICE KNOWN AS PERT PLUS IN THE US WHICH COMBINES SHAMPOO AND CONDITIONER IS A HIT WITH WORKING WOMEN OTHER CONVENIENCE PRODUCTS RINGING UP SALES IN ASIA RANGE FROM INSTANT NOODLES TO CARBONATED SOFT DRINKS FASTFOOD CHAINS TOO ARE WINNERS ONCE YOU GET USED TO FAST FOOD SAYS LEE YOO LIM A 23YEAROLD JOURNALIST WITH THE BUSINESS KOREA CO WHO REGULARLY FREQUENTS A MCDONALD'S RESTAURANT NEAR HER OFFICE IN SEOUL YOU CRAVE IT BECAUSE IT'S ACCESSIBLE AND QUICK BOTH MCDONALD'S CORP AND PEPSICO INC'S KENTUCKY FRIED CHICKEN SAY THEIR ASIAN FRANCHISES ARE THEIR BUSIEST IN THE WORLD MCDONALD'S NOW OPERATES 1778 RESTAURANTS IN THE REGION MORE THAN TWICE AS MANY AS IT HAD FIVE YEARS AGO KFC HAS OPENED MORE THAN 400 STORES IN THE REGION IN THE PAST FOUR YEARS BRINGING ITS TOTAL TO SLIGHTLY MORE THAN 1500 WITH THE BULK OF THE REGION'S POPULATION UNDER 30 CHILDREN AND YOUNG ADULTS ARE A HUGE MARKET TEENAGERS UNDER THE HOMOGENIZING INFLUENCE OF MTV ASIA APE STYLES WORN BY THE TRENDY YOUNG ASIANS WHO HOST THE SHOWS TOYS FROM JURASSIC PARK DINOSAURS TO NINTENDO VIDEO GAMES ARE SELLING BRISKLY DESPITE A SEVERE DOWNTURN IN CONSUMER SPENDING IN JAPAN THE MARKET FOR LUXURY GOODS IN THE REST OF THE REGION IS STILL STRONG IN BANGKOK THAILAND THE CITY'S URBAN ELITE ARE BUYING LUXURY CARS MERCEDESBENZ AG'S SALES IN THAILAND ARE EXPECTED TO RISE 50 THIS YEAR FROM 1992 AND SHOW A 317 SURGE FROM 1991 MOBILE TELEPHONES ARE ALSO MORE POPULAR THAN EVER SALES OF MOTOROLA INC CELLULAR PHONES ACROSS THE REGION ARE UP AN AVERAGE OF MORE THAN 20 THIS YEAR MASS MARKETERS LOOKING FOR A NICHE IN 1994 MIGHT DO WELL TO TRACK THE DEVELOPMENT OF CHINA'S CONSUMER MARKET SINCE ITS ECONOMY BEGAN TO OPEN UP IN THE LATE 1970S IN THE EARLY YEARS THE THREE MOST SOUGHT AFTER ITEMS WERE A SEWING MACHINE A BICYCLE AND AN ELECTRIC FAN ACCORDING TO LOUIS TONG MANAGING DIRECTOR OF THE CHINA DIVISION OF SURVEY RESEARCH GROUP A HONG KONGBASED MARKET RESEARCH FIRM IN THE '80S THEY WERE LOOKING FOR A TV A REFRIGERATOR AND A WASHING MACHINE HE RECALLS WHAT ARE THE THREE BIG ITEMS OF THE '90S A VCR A MOTORCYCLE AND A TELEPHONE HE SAYS 9310190135 931019 POLITICS & POLICY KODAK UNIT AMES RUBBER ARE GIVEN BALDRIGES AMID TOUGHER STANDARDS BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL TWO COMPANIES RECEIVED THE COMMERCE DEPARTMENT'S PRESTIGIOUS MALCOLM BALDRIGE NATIONAL QUALITY AWARD FEWER WINNERS THAN IN THE PAST THREE YEARS OF THE COMPETITION EASTMAN CHEMICAL CO A KINGSPORT TENN UNIT OF EASTMAN KODAK CO THAT IS SOON TO BE SPUN OFF AS AN INDEPENDENT COMPANY WAS THE ONLY WINNER IN MANUFACTURING AMES RUBBER CORP HAMBURG NJ WON IN THE SMALLBUSINESS CATEGORY NO WINNERS WERE ANNOUNCED IN SERVICE THE CONTEST'S THIRD DIVISION THE AWARDS ARE GIVEN FOR QUALITYIMPROVEMENT PRACTICES RATHER THAN FOR SPECIFIC PRODUCTS OR SERVICES THE BALDRIGE CONSIDERED THE ACADEMY AWARD OF BUSINESS IS PRESENTED ANNUALLY TO AS MANY AS TWO COMPANIES IN EACH OF THE THREE CATEGORIES UNTIL NOW AT LEAST THREE COMPANIES HAVE WON EACH YEAR SINCE THE COMPETITION BEGAN IN 1988 EXCEPT WHEN TWO WON IN 1989 A RECORD FIVE COMPANIES RECEIVED AWARDS LAST YEAR COMPANIES COVET THE AWARD PARTLY FOR ITS PUBLICRELATIONS VALUE WHICH SOME WINNERS EXPLOIT TO BOOST RECOGNITION AND SALES CURT W REIMANN WHO DIRECTS THE AWARD AT THE COMMERCE DEPARTMENT'S NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY ATTRIBUTED THE SMALL SIZE OF THIS YEAR'S WINNER'S CIRCLE IN PART TO TOUGHER STANDARDS AND INCREASING SCRUTINY BY THE CONTEST'S JUDGES THERE'S NOT A CONSCIOUS EFFORT TO RAISE THE BAR DR REIMANN SAID BUT WITH A MORE COMPREHENSIVE SELECTION PROCESS THE EFFECT IS THAT IT'S BECOMING INCREASINGLY DIFFICULT TO WIN NAMED FOR THE REAGANERA COMMERCE SECRETARY WHO DIED IN A RODEO ACCIDENT THE BALDRIGE AWARD HAS ENCOURAGED THE POPULAR TOTAL QUALITY MANAGEMENT MOVEMENT WHICH HAS BEEN CRITICIZED BY SOME COMPANIES BECAUSE THE PROCESS DOESN'T ALWAYS GENERATE POSITIVE RESULTS BUT EASTMAN CHEMICAL SAYS ITS DECADEOLD QUALITYIMPROVEMENT DRIVE HAS HELPED TO GENERATE ABOVEAVERAGE SALES FROM NEW PRODUCTS HIGH CUSTOMERSATISFACTION LEVELS AND A STRONG SAFETY RECORD AMONG OTHER EFFECTS EASTMAN WITH ABOUT 4 BILLION IN SALES OR ABOUT 20 OF ITS PARENT COMPANY'S TOTAL MAKES CHEMICALS FIBERS AND PLASTICS AMES RUBBER WITH ABOUT 45 MILLION IN SALES CREDITS ITS QUALITY PROGRAM WITH 3 MILLION IN WASTECUTTING SAVINGS OVER THE PAST FIVE YEARS INCLUDING A REDUCTION IN DEFECT RATES TO 11 PARTS PER MILLION FROM OVER 30000 PARTS PER MILLION AMES PRIMARILY MAKES RUBBER ROLLERS FOR COPIERS TYPEWRITERS AND OTHER OFFICE MACHINES A TOTAL OF 76 COMPANIES APPLIED FOR THE BALDRIGE THIS YEAR DOWN FROM 90 LAST YEAR THIRTEEN COMPANIES REACHED THE COMPETITION'S FINAL ROUND MERITING SITE VISITS TO FOLLOW UP ON THEIR WRITTEN APPLICATIONS THE COMMERCE DEPARTMENT DOESN'T DISCLOSE THE IDENTITIES OF NONWINNING APPLICANTS BUT UNITS OF AMP INC HARRISBURG PA ARMSTRONG WORLD INDUSTRIES INC LANCASTER PA METROPOLITAN LIFE INSURANCE CO NEW YORK AND UNISYS CORP BLUE BELL PA HAVE ALL ACKNOWLEDGED RECEIVING SITE VISITS THIS YEAR MET LIFE LAST WEEK ANNOUNCED THAT IT WITHDREW ITS APPLICATION CITING A CONTROVERSY OVER ALLEGED SALES IMPROPRIETIES IN ITS TAMPA FLA OFFICE 9310190134 931019 COMPUTER CONCEPTS ACQUISITION NEW YORK COMPUTER CONCEPTS CORP BOHEMIA NY HAS ACQUIRED PRIVATELY HELD SOFTWORKS INC OF WASHINGTON DC FOR ABOUT 9 MILLION IN CASH AND EQUITY COMPUTER CONCEPTS DEVELOPED AND MARKETS A SOFTWARE PACKAGE CALLED DBEXPRESS A SYSTEM DESIGNED TO PROVIDE USERS WITH EASY ACCESS TO DATA STORED ON MAINFRAME COMPUTERS COMPUTER CONCEPTS PRESIDENT DAN DELGIORNO JR SAID SOFTWORKS WHICH DEVELOPS SYSTEMS SOFTWARE FOR MAINFRAMES HAD 1992 REVENUE OF 72 MILLION IN 1993 SALES ARE EXPECTED TO INCREASE TO ABOUT 9 MILLION 9310190133 931019 TECHNOLOGY EARNINGS AT MERCK AMERICAN HOME ROSE IN 3RD PERIOD BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL TWO PHARMACEUTICAL COMPANIES MERCK & CO AND AMERICAN HOME PRODUCTS CORP REPORTED HIGHER THIRDQUARTER EARNINGS DESPITE SLUGGISH SALES GROWTH CAUSED BY UNFAVORABLE FOREIGN EXCHANGE RATES AND CONTINUED PRESSURE ON PRICES DRUG STOCKS RALLIED YESTERDAY PARTLY BECAUSE BELLWETHER MERCK'S RESULTS SLIGHTLY EXCEEDED EXPECTATIONS RAISING HOPES THAT OTHER DRUG COMPANIES WOULD REPORT INLINE OR BETTERTHANEXPECTED RESULTS THIS WEEK AND NEXT SAID RONALD NORDMANN A PAINEWEBBER INC ANALYST THE MAJOR FACTOR HERE IS THERE AREN'T ANY DISAPPOINTMENTS SAID D LARRY SMITH AN ANALYST AT HAMBRECHT & QUIST MERCK BASED IN WHITEHOUSE STATION NJ REPORTED THAT NET INCOME ROSE 11 IN THE QUARTER TO 7057 MILLION OR 62 CENTS A SHARE FROM 6348 MILLION OR 55 CENTS A SHARE A YEAR EARLIER FOR THE FIRST NINE MONTHS MERCK'S NET ROSE 85 TO 149 BILLION OR 131 A SHARE FROM 138 BILLION OR 119 A SHARE P ROY VAGELOS MERCK'S CHAIRMAN ATTRIBUTED THE PROFIT GROWTH TO STRONG UNIT VOLUME GAINS BETTER PRODUCT MIX COST CONTROLS AND PRODUCTIVITY IMPROVEMENTS AND A LOWER TAX RATE SALES IN THE QUARTER ROSE 32 TO 254 BILLION FROM 246 BILLION EXCLUDING THE EFFECT OF THE SALE OF MERCK'S CALGON WATER MANAGEMENT BUSINESS EARLIER THIS YEAR SALES GROWTH WAS 6 FOR THE NINE MONTHS SALES INCREASED 62 TO 75 BILLION FROM 706 BILLION THE STRONG DOLLAR HURT FOREIGN SALES WHICH ACCOUNT FOR 45 OF THE COMPANY'S SALES ACCORDING TO MERCK PHARMACEUTICAL SALES VOLUME ABROAD GREW 10 BUT CURRENCY TRANSLATIONS REDUCED SALES BY ABOUT SIX PERCENTAGE POINTS IN THE US PHARMACEUTICAL SALES ROSE 5 MOSTLY FROM SALES VOLUME GROWTH THIRDQUARTER SALES OF THE COMPANY'S BIGGEST PRODUCT HEART DRUG VASOTEC DECLINED 4 TO 480 MILLION WORLDWIDE AND DECLINED 7 IN THE US SALES OF ANTICHOLESTEROL DRUG MEVACOR ROSE A MODEST 3 TO 330 MILLION WORLDWIDE BUT GAINED 8 IN THE US NEWER ANTICHOLESTEROL ENTRANT ZOCOR ROSE 42 TO 235 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MERCK SHARES JUMPED 125 TO CLOSE AT 3225 AMERICAN HOME PRODUCTS REPORTED THAT NET IN THE QUARTER ROSE 4 TO 3976 MILLION OR 128 A SHARE FROM 3824 MILLION OR 122 A SHARE FOR THE NINE MONTHS NET DECLINED 1 TO 109 BILLION OR 350 A SHARE FROM 11 BILLION OR 349 A SHARE THE FIRST NINE MONTHS OF 1992 INCLUDED THE EFFECTS OF AN ACCOUNTING CHANGE AND A CHARGE FOR AN ACQUISITION WHICH CONTRIBUTED A TOTAL OF 90 MILLION TO NET INCOME SALES IN THE QUARTER WERE 217 BILLION A 28 INCREASE FROM 211 BILLION A YEAR EARLIER FOR THE NINE MONTHS SALES ROSE 54 TO 619 BILLION FROM 587 BILLION NEW YORKBASED AMERICAN HOME BLAMED CONTINUED COMPETITIVE MARKET FACTORS IN THE US PHARMACEUTICAL MARKET WEAK ECONOMIES IN SEVERAL MAJOR COUNTRIES AND UNFAVORABLE FOREIGN EXCHANGE RATES FOR ITS SLUGGISH PERFORMANCE 9310190132 931019 GREAT WALL AS THE RICH IN CHINA GROW RICHER THE POOR ARE GROWING RESENTFUL A CLAMPDOWN ON EASY CREDIT DEEPENS THE DIFFICULTIES FACED BY INLAND REGIONS HARD LIFE ON THE GOBI'S EDGE BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL TANG VILLAGE CHINA AUTUMN HAS BROUGHT A BOUNTIFUL HARVEST TO THIS QUIET FARMING VILLAGE OXEN TREAD ON DENSE TANGLES OF SOYBEANS CRACKING OPEN SUNDRIED PODS WITH EACH PLODDING STEP PEASANTS STACK YELLOW EARS OF HUSKED CORN HIGH AGAINST EARTHEN WALLS SUCH PASTORAL IMAGES BELIE ANOTHER BUMPER CROP BITTERNESS IN THIS YELLOW RIVER DELTA HAMLET IN NORTHEAST CHINA TWO YEARS AGO THE LOCAL COMMUNIST PARTY TAKING ADVANTAGE OF A GOVERNMENT PROGRAM TO HELP BACKWARD AREAS GOT A 250000 LOAN TO BUILD A FACTORY FOR PROCESSING CORN INTO STARCH FOR NEARBY TEXTILE FOOD AND CHEMICAL INDUSTRIES BUT TODAY THE FACTORY SELDOM OPERATES AND MANY OF ITS 120 WORKERS ARE IDLE THIS WINTER IT MAY CLOSE FOR LACK OF MONEY TO BUY MORE CORN BORN OF ONE GOVERNMENT CAMPAIGN IT IS NOW MENACED BY ANOTHER A CLAMPDOWN ON LOANS THAT SEEKS TO CURB PROPERTY AND STOCKMARKET SPECULATION FAR AWAY IN SOUTH CHINA'S THRIVING COASTAL AREAS I HAVE BEEN TO SOUTH CHINA AND I KNOW WHAT'S HAPPENING SAYS WANG LIANGUI TANG VILLAGE'S FRUSTRATED FACTORY MANAGER AND COMMUNIST PARTY SECRETARY A LOT OF MONEY WAS USED ON PROPERTY AND ENTERTAINMENT BY RICH PEOPLE SO THERE WAS NONE FOR US THE VICE MAGISTRATE OF SURROUNDING LING COUNTY IS EVEN MORE INDIGNANT THE RICH REGIONS GET RICHER AND THE POOR REGIONS GET POORER COMPLAINS MA RANHUA WE'VE HAD A POOR FOUNDATION FROM THE BEGINNING BUT INVESTMENT GOES TO OTHER PLACES NOT HERE CHINA'S NEW AFFLUENCE IS CASTING A GRAVE PROBLEM IN BOLD RELIEF ITS STUNNING ECONOMIC GAINS HAVEN'T BENEFITED A MAJOR SLICE OF THE POPULATION AND THE PROSPERITY IN MANY CITIES AND SOUTHERN COASTAL AREAS STIRS RESENTMENT IN LEFTOUT REGIONS INDEED THERE HAVE BEEN INDICATIONS RECENTLY THAT CHINA'S ECONOMIC CZAR VICE PREMIER ZHU RONGJI MAY BE UNDER PRESSURE TO RELAX THE STRINGENT MONETARY CONTROLS HE IMPOSED IN JUNE TO COOL THE OVERHEATED ECONOMY AND CURB INFLATION WHICH IS RUNNING AT A 22 ANNUAL RATE IN MAJOR CITIES HIS ACTIONS HAVE CHOKED OFF MONEY NOT ONLY TO BOOMING REGIONS BUT ALSO TO STRUGGLING AGRARIAN AREAS IN A MAINLY RURAL COUNTRY OF 12 BILLION SUCH HARD POLICIES ARE VERY DELICATE LITICALLY AND THE PROBLEM IS AGGRAVATED BY PARAMOUNT LEADER DENG XIAOPING'S OFTREPEATED EXHORTATIONS TO GET RICH HOW CAN I GET RICH ASKS ZHANG TAILAI A 70YEAROLD WIDOW WHO LIVES ALONE IN AN 18THCENTURY MUDANDLOG HOVEL IN THE ROCKY HILLS SKIRTING THE GOBI DESERT IN HARDSCRABBLE GANSU PROVINCE IN THE REMOTE NORTHWEST WITH WHAT NONE OF THE BELONGINGS IN HER DIRTFLOOR HOME ARE NECESSARILY OF THIS CENTURY SAVE A CEILING PAPERED WITH A YELLOWING 1987 NEWSPAPER THOUGH SHE CAN'T READ SHE HAS NO ELECTRICITY AND GETS WATER ONLY FROM A NEARBY SPRING SHE AND THE FEW DOZEN OTHER VILLAGERS EAT WHAT VEGETABLES SURVIVE THE CONSTANT DESERT WINDS THEY HAVE NO CASH INCOME I HAVE THREE MEALS A DAY I DON'T NEED MUCH MRS ZHANG SAYS YET MANY CHINESE WANT MORE THAN THAT DESPITE A DAILY DIET OF NEWS ABOUT THE COUNTRY'S FASTMOVING ECONOMY REAL INFLATIONADJUSTED GROWTH MAY TOP 10 THIS YEAR AFTER HITTING 129 LAST YEAR MOST CHINESE LIVE MODESTLY AND MANY HAVE NO SAVINGS AT ALL ONE IN 10 BICYCLES IN BEIJING MAY BE A NEW MOUNTAIN BIKE BUT NINE ARE NOT CHINA SAYS IT MAY HAVE A MILLION MILLIONAIRES IN ITS CURRENCY THE YUAN A MILLION YUAN IS OFFICIALLY VALUED AT 175000 BUT IT ALSO HAS T LEAST 80 MILLION WHO ARE BY ITS OWN ADMISSION POOR ECONOMIC REFORM NOT ONLY CHANGES ECONOMIC SYSTEMS BUT IS ALSO A REVOLUTION IN IDEAS SAYS CUI ZHENGHUA GANSU'S VICE GOVERNOR THAT REVOLUTION MUST BE THE GOVERNMENT'S TOP CONCERN HE ADDS MANY OFFICIALS SAY THAT PRESERVING CHINA'S SOCIAL HARMONY OR AT LEAST MAKING SURE NOBODY FEELS LEFT BEHIND BY THE 15YEAROLD REFORM CAMPAIGN IS AMONG THEIR MAJOR CHALLENGES IT'S HISTORICALLY SYMBOLIC TOO BECAUSE THE COMMUNIST PARTY SWEPT TO POWER IN 1949 AFTER DEPLORING EGREGIOUS DISPARITIES IN WEALTH THE DIVISION BETWEEN THE RICH AND POOR IS LARGER NOW THAN IN THE MRECENTJ PAST FRETS ZHU ZHIMING A DIVISION CHIEF FOR THE PLANNING COMMISSION OF SHANDONG PROVINCE WHICH INCLUDES TANG VILLAGE AND ITS 700 RESIDENTS TO DEAL WITH THIS PROBLEM PROPERLY IS OF STRATEGIC IMPORTANCE IF WE KEEP THE SITUATION LIKE IT IS NOW THE PEOPLE WILL RESENT REFORM ALREADY CHINA'S UNEVENLY RISING WEALTH IS PRODUCING SOCIAL PROBLEMS SUCH AS A SURGE IN INTERNAL MIGRATION CRIME AND CORRUPTION AND EVEN CONTEMPT AMONG VARIOUS ECONOMIC CLASSES UNDERLYING ALL THE PROBLEMS ARE RISING EXPECTATIONS ENCOURAGED BY GOVERNMENT PROPAGANDA URGING PEOPLE TO GET RICH AND MAKING THEM WILLING TO TAKE RISKS TO DO SO IN LING COUNTY MA RANHUA COMPLAINS THAT THE BRIGHTEST YOUNG PEOPLE ARE LEAVING THEY KNOW THEY CAN'T GET RICH BY STAYING IN THEIR BACKWARD HOMETOWNS WHERE PERIODIC FLOODS SALINE SOIL AND OTHER HANDICAPS HOLD DOWN AVERAGE ANNUAL FARM INCOMES TO LESS THAN 100 A PERSON SO THEY JOIN A SWELLING ITINERANT LABOR FORCE THAT MAY EXCEED 50 MILLION NATIONWIDE A NEW PROGRAM OFFERING A FREE UNIVERSITY EDUCATION TO 20 OR 30 STUDENTS EACH YEAR WHO AGREE TO RETURN TO THE COUNTY BARELY MAKES A DENT IN THE HUGE OUTFLOW OTHERS DO STAY BUT RESORT TO CRIME TO GET RICH THEFTS OF EQUIPMENT AND CRUDE OIL FROM A NEARBY OIL FIELD HAVE BECOME COMMON PROVINCIAL OFFICIALS SAY SOME COUNTIES ARE VERY POOR AND WANT TO FIND SOME WAY TO GET RICH SO THEY SET UP REFINERIES SAYS HAN MING AN OFFICIAL IN JINAN THE CAPITAL OF SHANDONG PROVINCE FARMERS WANT TO GET RICH TOO THOUGH SO THEY STEAL OIL AND SELL IT TO THE REFINERIES CHINA NATIONAL PETROLEUM CORP ESTIMATES ITS THEFT LOSSES EXCEED 150 MILLION A YEAR DESPITE BEIJING'S STRONG STEPS TO DISCOURAGE CORRUPTION INCLUDING PUBLICIZING THE IMPRISONMENT AND EXECUTION OF SOME OFFICIALS AND EXECUTIVES MANY PEOPLE STILL ENGAGE IN ILLICIT EALINGS IN QINGDAO A PROSPEROUS COASTAL CITY IN SHANDONG AUTOMOBILES SMUGGLED IN FROM NEARBY SOUTH KOREA ARE POPULAR LESS OBVIOUS BUT MORE INSIDIOUS IS THE RISING TIDE OF CONTEMPT PARTICULARLY FOR THE POOR BY THE WEALTHY WANG HAI THE HEAD OF QINGDAO DOUBLE STAR CORP EXEMPLIFIES THE PROUDLY PROSPEROUS IF YOU WANT TO WORK HARD AND USE YOUR HEAD ANYBODY CAN BE RICH HE SAYS IF YOU ARE LAZY YOU CANNOT MR WANG WHOSE STATEOWNED SHOE COMPANY IN SHANDONG ANNUALLY EXPORTS 15 MILLION PAIRS OF ATHLETIC SHOES PAYS WORKERS A MINIMUM OF 210 A YEAR BUT SAYS HIS BEST MANAGERS EARN UP TO 17000 ANNUALLY HE LIKES TO FLAUNT HIS COMPANY'S MONEY HE SPENT THOUSANDS OF DOLLARS ON OFFICE DECORATIONS INCLUDING A MONKEY CAGE NOT UNUSUAL IN A FREEFORALL CAPITALIST SYSTEM PERHAPS BUT IN CHINA WHERE A SOCIALIST LEGACY ASSUMES THAT MANY PEOPLE DON'T HAVE THE OPPORTUNITY TO BECOME RICH SUCH ATTITUDES BORDER ON THE HERETICAL THAT MAY EXPLAIN WHY MR WANG HAS HE ADMITS BEEN THE TARGET OF ANONYMOUS LETTERS TO COMMUNIST PARTY ELDERS THAT GENERALLY ACCUSE HIM OF MISTREATING OR UNDERPAYING WORKERS HE SAYS HE AVERTED TROUBLE BY SMOOTH TALKING MANY OF CHINA'S RECENT POLICIES CAN BE VIEWED PARTLY IN LIGHT OF A DESIRE TO HEAD OFF SOCIAL FRICTIONS EMANATING FROM THE UNEVEN DISTRIBUTION OF WEALTH WHEN VICE PREMIER ZHU ASSUMED CONTROL OF CHINA'S ECONOMY IN JUNE ONE OF HIS FIRST MOVES WAS TO CLAMP DOWN ON CREDIT NATIONWIDE THE ACTION THAT IRONICALLY PREVENTS TANG VILLAGE FROM GETTING FUNDS FOR ITS STARCH FACTORY WHILE LOCAL OFFICIALS LAMENT SUCH PROBLEMS BEIJING SAYS IT IS MARSHALING CASH THAT HAD BEEN FLOWING INTO OVERHEATED STOCK AND PROPERTY MARKETS PRECISELY SO THAT THEY CAN REDIRECT IT TO RURAL AREAS SO MUCH MONEY HAD BEEN GOING TO THE RAPIDLY DEVELOPING SOUTH IN THE PAST COUPLE OF YEARS THAT SOME GOVERNMENT BANKS HAD TO ISSUE IOUS TO FARMERS FOR CROP PAYMENTS A PRACTICE THAT SPARKED FARMER RIOTING WE MUST SEEK COMMON PROSPERITY SAYS ZHU ZHIMING OF SHANDONG PROVINCE'S PLANNING DIVISION MANY CHINESE AGREE IN XUSHENG VILLAGE A SHANDONG HAMLET WHERE MANY FARMERS HAVE SAVED ENOUGH TO PAY UP TO 10000 FOR THEIR OWN VILLAS EACH EQUIPPED WITH SATELLITE TELEVISION FROM HONG KONG SENSITIVITY TO THEIR POOR NEIGHBORS IS HIGH FAMILIES DONATED CLOTHING AND THOUSANDS OF DOLLARS TO TOWNS HARD HIT EARLIER THIS YEAR BY YELLOW RIVER FLOODS SOME COMPANIES ALSO ARE HELPING IMPOVERISHED AREAS DOUBLE STAR THE SHOE COMPANY MR WANG RUNS RECENTLY OPENED A NEW PRODUCTION LINE WITH 2000 WORKERS IN A POOR MOUNTAINOUS AREA OF SHANDONG THE REASON CHEAPER LABOR IS THE ONLY WAY FOR IT TO COMPETE IN THE US MARKET WHERE BIG RETAILERS ARE PAYING ONLY 385 FOR A PAIR OF PLAIN CANVAS ATHLETIC SHOES DOWN FROM MORE THAN 4 LAST YEAR WE WANT TO HELP THE POOR SURE MR WANG SAYS BUT THE MAIN REASON IS THE MARKET WE HAVE TO GO TO LOWER COSTS TO COMPETE WHEN IT COMES TO AVERTING SOCIAL RIFTS THOUGH CHINESE OFFICIALS AT THE NATIONAL PROVINCIAL AND EVEN LOCAL LEVELS KNOW THEY CAN'T WAIT FOR MARKET FORCES AND SO THEY ARE TRYING TO HELP POVERISHED MAINLY INLAND PLACES SUCH AS GANSU PROVINCE MUCH OF IT IS DESERT FROM THE SKY THE BLEAK EARTH LOOKS LIKE CRUMPLED BROWN PAPER WITH GLACIERS OF RUST OR ASHCOLORED SAND AMONG THE MOUNTAINS ONLY IRRIGATION WITH YELLOW RIVER WATER PERMITS SOME AGRICULTURE NEARLY ONETHIRD OF THE NORTHWESTERN PROVINCE'S 23 MILLION PEOPLE ARE POOR WITH INCOMES AVERAGING 52 A YEAR OR LESS A DECADE AGO TWOTHIRDS WERE POOR GANSU IS BENEFITING FROM BEIJING'S ANTIPOVERTY MEASURES IT GETS AID HYDROELECTRIC DAMS AND IRRIGATION PROJECTS PLUS NEARLY 30 MILLION ANNUALLY IN DIRECT ASSISTANCE AND GUIDANCE OFFICIALS FROM MORE PROSPEROUS PROVINCES VISIT IT REGULARLY LAST YEAR THE NATIONAL PEOPLE'S CONGRESS DECLARED THAT NORTHWEST CHINA MERITS SPECIAL ATTENTION FROM ECONOMIC PLANNERS ITS CITIES WERE OPENED TO FOREIGN INVESTMENT AND THE GOVERNMENT VOWED TO ACCELERATE DECONTROL OF RAW MATERIALS AND MANUFACTURED GOODS PRODUCED IN THE AREA THE COASTAL REGIONS WILL HAVE TO PAY MORE FOR RESOURCES THUS TRANSFERRING SOME OF THEIR WEALTH TO THE HINTERLANDS SUCH MEASURES ALONE CAN'T ERASE FEELINGS OF DEPRIVATION THOUGH WHEN PEOPLE IN THE SOUTH MAKE ONE EFFORT PEOPLE IN GANSU SHOULD MAKE 10 VICE GOVERNOR CUI SAYS WHEN PEOPLE IN THE SOUTH MAKE 10 WE SHOULD MAKE 100 GANSU OFFICIALS' OWN EFFORTS TO IMPROVE CONDITIONS ARE AUDACIOUS IN AREAS WHERE THERE IS WATER THE GOVERNMENT GIVES AGRICULTURAL TRAINING AND SUPPORT WHERE THERE IS RAINFALL IT TRIES TO ESTABLISH STEPPEDTERRACE FARMING TO MAXIMIZE PRODUCTIVITY WHERE THERE IS LITTLE WATER OR RAIN IT TRIES TO IRRIGATE OR RELOCATES THE POPULATION SOME 220000 PEOPLE ARE BEING MOVED INTO A 110MILELONG NEWLY IRRIGATED STRIP IN A 100 MILLION PROJECT WANGZHANG VILLAGE 250 MILES FROM LANZHOU GANSU'S CAPITAL WAS SET UP FIVE YEARS AGO AS PART OF A RELOCATION PROGRAM MOST OF ITS 680 RESIDENTS CAME FROM AN 18THCENTURY VILLAGE A HALFHOUR JEEP RIDE ACROSS THE DESERT AND THROUGH A GAP IN THE GREAT WALL WHICH LOOKS LIKE A FAT STRIPE OF MELTED BROWN SUGAR SOME PEOPLE ARE STILL LIVING THERE IN MUD HUTS MOST OF THE MIGRANTS IN THE NEW VILLAGE GROW AND SELL FRUIT AND VEGETABLES THEY HAVE EVEN OPENED SALES OFFICES IN THE SOUTH THE VILLAGE SECRETARY ZHANG SHITANG PRAISES THE GOVERNMENT'S HELP WITHOUT IT WE WOULD STILL BE VERY POOR HE SAYS BUT DESPITE THE IMPROVEMENT IN CONDITIONS HE KNOWS THAT LIFE ELSEWHERE IN CHINA IS BETTER AND HE LONGS FOR IT WE CAN'T ACHIEVE THE SAME STANDARDS HERE HE SAYS LIKE THE STARCH FACTORY IN TANG VILLAGE WANGZHANG'S PLASTER FACTORY CAN'T GET THE MONEY TO KEEP OPERATING AND LIKE THE STARCHFACTORY MANAGER MR ZHANG BLAMES THE EXTRAVAGANT NIGHTCLUB SPENDING BY THE RICH CHINESE IN THE SOUTH 9310190131 931018 REPORT ON ASIA THAT HUM YOU HEAR IS ASIA GROWING BY LAURENCE ZUCKERMAN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG THE US IS BARELY WALKING JAPAN IS ON ITS KNEES EUROPE IS ON ITS BACK BUT THE ASIAN ECONOMY EXCLUDING JAPAN IS SWAGGERING AND IT WILL CONTINUE TO DO SO THROUGH 1994 ACCORDING TO THIS YEAR'S ANNUAL ASIAN WALL STREET JOURNAL ECONOMIC SURVEY THIS REGION IS SET TO OUTPACE THE GROWTH OF THE WORLD'S 24 LEADING INDUSTRIAL ECONOMIES BY MORE THAN SIX TIMES IN 1993 HAVING GROWN AT LEAST FOUR TIMES AS FAST IN EACH OF THE PAST THREE YEARS MOST ECONOMISTS SAY THIS SIZZLING PACE CAN'T CONTINUE AND A MODERATE SLOWDOWN IS FORECAST FOR 1994 BUT THE REGION'S 11 MAJOR ECONOMIES OUTSIDE JAPAN WILL STILL OUTPERFORM THE INDUSTRIAL COUNTRIES BY WIDE MARGINS HOW CAN ASIA CONTINUE TO HUM ALONG AT AN AVERAGE 7 GROWTH RATE NEXT YEAR WHEN ITS LONGTIME CUSTOMERS IN EUROPE JAPAN AND THE US ARE SET TO GROW AT AN AVERAGE OF ONLY 27 THE ANSWER LIES IN A BLEND OF INGREDIENTS THAT INCLUDES THE REGION'S TRADITIONAL PROWESS AT EXPORTING ITS RAPID EMERGENCE AS A MARKET UNTO ITSELF AND ITS RESULTING MOUTHWATERING ATTRACTION TO FOREIGN INVESTORS INTERNATIONAL TRADE REMAINS VITAL THE ASIAN ECONOMIC MIRACLE WAS BUILT ON VIRTUALLY FREE ACCESS TO THE MARKETS OF THE DEVELOPED WORLD PARTICULARLY THE US AS TIME PASSED AND THE US AND EUROPE GREW TO DEPEND ON ASIAN SUPPLIERS MORE AND MORE THEIR BUSINESSES BEGAN ABANDONING PRODUCTION OF CERTAIN GOODS TO MORE EFFICIENT ASIAN PRODUCERS SHOES GARMENTS TOYS AND TELEVISION SETS THAT USED TO BE MADE IN NORTH AMERICA AND EUROPE IN GREAT NUMBERS NOW COME LARGELY FROM ASIA CONSUMERS BUY THESE IN BOTH GOOD TIMES AND BAD INDEED DURING LEAN YEARS SUCH AS NOW WHEN PURCHASING DECISIONS ARE INFLUENCED MORE BY PRICE THAN QUALITY ASIA'S CHEAPER WARES MAY SELL EVEN BETTER IN THE DEVELOPED WORLD FIERCE COMPETITION AND THREATS OF PROTECTIONISM HAVE ALSO MADE ASIA'S MANUFACTURERS HIGHLY FLEXIBLE READY TO POUNCE ON NEW MARKETS WITH LIGHTNING SPEED AJAY KAPUR CHIEF REGIONAL ECONOMIST FOR PEREGRINE BROKERAGE INC IN HONG KONG CALLS THE REGION'S EXPORTERS GUERRILLA TRADERS ASIAN MANUFACTURERS NO LONGER NEED TO DEPEND ON CUSTOMERS IN EUROPE AND NORTH AMERICA AS MUCH AS BEFORE THEIR FASTEST GROWING BUSINESS IS WITHIN THE REGION ITSELF SINCE 1986 THE PERCENTAGE OF ASIA'S TOTAL EXPORTS THAT STAYED WITHIN THE REGION JUMPED TO MORE THAN 43 FROM ABOUT 31 ECONOMISTS DISAGREE OVER THE SIGNIFICANCE OF THIS FIGURE SOME ARGUE THAT THE BULK OF THIS INTRAREGIONAL TRADE IS COMPONENTS WHOSE ULTIMATE BUYERS REMAIN IN EUROPE AND NORTH AMERICA BUT THERE IS NO DOUBT THAT THE REGIONAL ECONOMY IS CONSUMING MORE AND SPENDING MORE ON INFRASTRUCTURE DEVELOPMENT THUS HELPING SUSTAIN ITS HIGHER GROWTH RATES THE MOST VIVID EXAMPLE OF THIS IN 1993 HAS BEEN CHINA'S BOOMING TRADE WITH ITS NEIGHBORS IN NORTHEAST ASIA IN THE FIRST HALF FOR EXAMPLE KOREA'S TOTAL EXPORTS ROSE 64 EXCLUDING EXPORTS TO CHINA THEY WOULD HAVE GROWN ONLY 27 TAIWAN'S TOTAL TRADE WITH THE MAINLAND JUMPED 225 IN THE FIRST FIVE MONTHS OF 1993 AS A RESULT BEIJING'S ATTEMPTS STARTING LAST SUMMER TO REIN IN ITS OVERHEATED ECONOMY WHICH GREW AT AN ANNUAL RATE OF MORE THAN 14 IN THE FIRST HALF COULD HAVE A MAJOR IMPACT ON REGIONAL GROWTH IN 1994 BEGINNING WITH THE ECONOMY MOST CLOSELY LINKED TO IT HONG KONG AND RIPPLING OUT BUT THE CONSENSUS AMONG MOST REGIONAL ECONOMISTS IS THAT CHINA WILL BE ABLE TO SLOW THINGS DOWN WITHOUT RESORTING TO THE KINDS OF DRASTIC MEASURES IT TOOK IN THE LATE 1980S WHEN THE ECONOMY WAS VIRTUALLY STOPPED COLD GROWTH FORECASTS FOR CHINA IN 1994 RANGE BETWEEN 6 AND 8 FOLLOWING ESTIMATED GROWTH OF 12 TO 14 IN 1993 BUT MANY ECONOMISTS BELIEVE THE 1994 FIGURE IS LIKELY TO BE AT THE TOP OF THE RANGE THESE ECONOMIES ARE LIKE SUPERTANKERS SAYS RANJAN PAL CHIEF REGIONAL ECONOMIST AT JARDINE FLEMING BROKING LTD IN HONG KONG IT TAKES A WHILE TO TURN THEM AROUND NEVERTHELESS MR PAL CONCLUDES AUSTERITY EVENTUALLY WILL PUT A DAMPER ON CHINA'S IMPORT BOOM GIVEN THAT IT IS THE LARGEST CHUNK OF THE REGIONAL ECONOMY OUTSIDE JAPAN CHINA'S SLOWDOWN WILL BE A SIGNIFICANT DRAG ON THE OVERALL REGIONAL GROWTH RATE IN 1994 BUT ITS SLOWING MAY BE PARTIALLY OFFSET BY THE ACCELERATION OF ANOTHER GIANT INDIA INDIA HAS MOVED TO DEREGULATE ITS ECONOMY AND RELAX ITS GOAL OF COMPLETE SELFSUFFICIENCY AFTER TWO YEARS THE REFORMS ADOPTED BY THE GOVERNMENT OF PRIME MINISTER PV NARASIMHA RAO WHICH INCLUDE FLOATING THE RUPEE AND CUTTING TARIFFS HAVE BEGUN TO PAY OFF EXPORTS ROSE STEEPLY IN THE FIRST HALF AND ANALYSTS EXPECT THE COUNTRY TO ATTRACT INCREASING AMOUNTS OF FOREIGN INVESTMENT IN 1994 OVERALL GROWTH IS SET TO TOP 5 IN THE FISCAL YEAR ENDING NEXT MARCH 31 AFTER REGISTERING ABOUT 3 THE PREVIOUS YEAR SANJOY CHOWDHURY CHIEF ECONOMIST FOR THE ASIANPACIFIC REGION AT MERRILL LYNCH & CO IN SINGAPORE BELIEVES INDIA WILL GO ON TO EXPAND 65 IN THE FISCAL YEAR ENDING IN MARCH 1995 HE SAYS INDIA COULD THEN PLAY THE SAME ROLE FOR SOUTHEAST ASIA THAT CHINA HAS BEEN PLAYING FOR NORTHEAST ASIA ANOTHER FORCE PRIMING ASIA'S PUMP IN THE COMING YEAR WILL BE OVERSEAS INVESTMENT HOW MUCH IS LIKELY TO FLOW IN IS A MATTER OF DISAGREEMENT AMONG ECONOMISTS KENNETH COURTIS STRATEGIST AND SENIOR ECONOMIST FOR DEUTSCHE BANK CAPITAL MARKETS ASIA LTD IN TOKYO BELIEVES THE APPRECIATION OF THE YEN AGAINST THE US DOLLAR THIS YEAR COMBINED WITH A RECORD CURRENTACCOUNT SURPLUS WILL FORCE JAPANESE COMPANIES TO TRANSFER OPERATIONS ABROAD MUCH AS THEY DID AFTER THE YEN'S RISE IN THE MID1980S HOWEVER THIS TIME MR COURTIS PREDICTS RATHER THAN INVEST THE BULK OF THEIR FUNDS IN EUROPE AND NORTH AMERICA JAPANESE COMPANIES WILL TARGET ASIA BUT OTHER ECONOMISTS COUNTER THAT JAPAN'S ECONOMY IS IN A VERY DIFFERENT SITUATION THAN IT WAS IN THE LATE 1980S THE FINANCIAL SECTOR IS STILL REELING UNDER THE WEIGHT OF BAD LOANS THAT FINANCED THE SPECULATION OF THE 1980S BOOM CORPORATE PROFITS ARE DOWN AND JAPANESE CONSUMERS ARE BUYING LESS MEANING MANUFACTURERS CANNOT DEPEND ON DOMESTIC DEMAND TO CUSHION THE EFFECTS OF THE RISING YEN EVEN THOUGH THE COUNTRY IS RUNNING HUGE TRADE SURPLUSES SAYS CH KWAN SENIOR ECONOMIST AND HEAD OF ASIAN RESEARCH AT NOMURA RESEARCH INSTITUTE IN TOKYO FEW COMPANIES ARE IN A POSITION TO INVEST STILL EVEN THESE PESSIMISTS BELIEVE ASIA CAN COUNT ON AN INCREASE IN INVESTMENT BECAUSE MORE OF THE JAPANESE CAPITAL THAT IS SENT OVERSEAS WILL BE DESTINED FOR THE REGION A RECENT SURVEY OF INVESTMENT PLANS AT SEVERAL HUNDRED MANUFACTURING AND SERVICE COMPANIES FOUND THAT MORE THAN HALF OF THE EXPECTED INVESTMENT BETWEEN NOW AND 1996 WOULD BE TARGETED AT ASIA BY CONTRAST BETWEEN 1986 AND 1990 MORE THAN 50 OF JAPANESE INVESTMENT WENT TO NORTH AMERICA THE TOP DESTINATION FOR THIS INVESTMENT ACCORDING TO THE SURVEY IS CHINA IN 1992 JAPANESE FOREIGN DIRECT INVESTMENT IN CHINA NEARLY DOUBLED TO 107 BILLION AND IT COULD EASILY DOUBLE OR QUADRUPLE AGAIN IN THE NEXT FEW YEARS PREDICTS MR KWAN OF NOMURA AMERICAN CORPORATIONS ALSO CAUGHT CHINA FEVER IN 1993 PART OF THE REASON THAT THE 58 BILLION IN CONTRACTED OVERSEAS INVESTMENT REGISTERED BY CHINA IN THE FIRST SIX MONTHS OF 1993 MATCHED THE TOTAL FIGURE FOR ALL OF 1992 A MORE REALISTIC FIGURE FOR 1992 MONEY ACTUALLY SPENT IS ESTIMATED TO BE BETWEEN 9 BILLION AND 10 BILLION MR CHOWDHURY OF MERRILL LYNCH BELIEVES THE US INTEREST ISN'T CONFINED TO CHINA ALONE HE HAS RECENTLY NOTICED AN EXPANSION OF US INVESTMENT THROUGHOUT THE REGION ASIA IS ALSO WHERE THE GROWTH IS FOR EXAMPLE TWOTHIRDS OF THE UNIT VOLUME GROWTH IN THE WORLD CAR MARKET IN THE 1990S IS EXPECTED TO COME FROM EAST ASIA ACCORDING TO DEUTSCHE BANK CAPITAL MARKETS ASIA LTD AS ROSY AS THE SIGNS ARE FOR THE ASIAN ECONOMY RELATIVE TO THE REST OF THE WORLD THERE ARE STILL SOME DANGERS A SUCCESSFUL CONCLUSION TO THE URUGUAY ROUND OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE IS CRITICAL TO ASSURING ASIAN EXPORTERS CONTINUED ACCESS TO THE DEVELOPED WORLD THE DEBATE OVER CHINA'S MOSTFAVOREDNATION TRADING STATUS WITH THE US WILL ALSO CROP UP AGAIN NEXT SPRING AS THE REGION'S ECONOMIC TIES TO CHINA GROW MORE IMPORTANT BY THE DAY ITS STAKE IN THAT ISSUE ALSO INCREASES FINALLY THE REGION'S OVERALL TRADE RELATIONS WITH WASHINGTON MAY BECOME A KEY ISSUE NEXT YEAR ACCORDING TO SEVERAL ANALYSTS THE CONTRIBUTION TO THE US TRADE DEFICIT FROM ASIA EXCLUDING JAPAN SOARED TO 47 LAST YEAR FROM 19 IN 1985 MR KAPUR OF PEREGRINE ESTIMATES THAT 100 OF THE US TRADE DEFICIT IS NOW ATTRIBUTABLE TO JAPAN AND THE REST OF ASIA THE CLINTON ADMINISTRATION IS NOW FOCUSING SOLELY ON JAPAN MR KAPUR SAYS THE MAGNITUDE OF THE DEFICIT FROM EXJAPAN ASIA HASN'T SUNK IN AT SOME POINT SOMEONE IN TREASURY IS GOING TO WAKE UP TO IT 9310190130 931019 WORLD MARKETS PRICES AGAIN SET RECORDS IN LONDON FRANKFURT SYDNEY AND HONG KONG AS RATES FUEL RALLIES A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARES CLIMBED TO A RECORD FINISH FOR THE SECOND SESSION IN A ROW LED BY HOPES FOR LOWER INTEREST RATES FRANKFURT EQUITIES ALSO ADVANCED TO THEIR SECOND CONSECUTIVE RECORD HIGH EXTENDING A THREEMONTH RALLY AND RECORDS WERE SET IN AMSTERDAM AND STOCKHOLM DESPITE EARLY STRENGTH TOKYO STOCKS WEAKENED BROADLY MONDAY KNOCKED DOWN BY A SELLOFF IN SOCALLED INDEX DERIVATIVES LINKED TO TRADE DATA BUT HONG KONG STOCKS JUMPED 3 TO THEIR SIXTH CONSECUTIVE RECORD HIGH AND SYDNEY SHARES AGAIN FINISHED AT A NEW SIXYEAR PINNACLE WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11356 DOWN 036 REFLECTING DECREASES IN ALL REGIONS OILFIELD EQUIPMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11393 UP 371 OR 34 WITH SCHLUMBERGER OF THE US POSTING A 57 GAIN IN ITS LOCAL CURRENCY CASINO STOCKS TRAILED AT 20750 DOWN 757 OR 35 WITH CASINO MUNICIPAL DE CANNES OF FRANCE SLIDING 13 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 168 POINTS TO 31376 AFTER HAVING POSTED A MIDDAY TRADING GAIN OF 22 POINTS THE FT 30STOCK INDEX ROSE 87 POINTS TO 23630 VOLUME WAS 6658 MILLION SHARES COMPARED WITH 7991 MILLION SHARES IN THE PREVIOUS SESSION INTERESTRATE EXPECTATIONS PLAYED THE DOMINANT ROLE EUROPEAN MARKETS SPECULATED THAT THE GERMAN BUNDESBANK THE CENTRAL BANK WILL BOW TO CURRENCYMARKET PRESSURES AND EASE MONETARY POLICY ON THURSDAY SOME EUROPEAN CURRENCIES HAVE WEAKENED AGAINST THE GERMAN MARK RECENTLY AND INVESTORS WERE HOPING FOR A RESCUE BY A CUT IN GERMAN RATES LONDON'S MOMENTUM ALSO WAS SAID TO BE AIDED BY US INVESTORS WHO SOME SECURITIES FIRMS SAID WERE TURNING TO EUROPEAN MARKETS IN HOPES OF CAPTURING SOME YIELD AND CAPITAL APPRECIATION IN A BET ON BRITISH ECONOMIC RECOVERY MEANWHILE SOME BRITISH INVESTORS BELIEVED THE GOVERNMENT MAY NOT BE ABLE TO BOOST TAXES AS MUCH AS FEARED IN FRANKFURT THE DAX 30STOCK INDEX GAINED 1829 POINTS TO 203332 AFTER SETTING A RECORD INTRADAY HIGH OF 204343 FRANKFURT'S RALLY UP 35 FROM THE DAX'S LOW THIS YEAR HAS BEEN DRIVEN BY EXPECTATIONS OF GRADUALLY FALLING GERMAN LENDING RATES TO HELP REJUVENATE THE NATION'S RECESSIONBOUND ECONOMY THE LATEST TROUBLES FOR EUROPEAN CURRENCIES COULD INFLUENCE A GERMAN MONETARY EASING LEADING TO A CUT IN SHORTTERM INTEREST RATES MEANWHILE INSTITUTIONAL INVESTORS WERE SAID TO BE SITTING ON ENOUGH LIQUIDITY TO KEEP STOCKS' UPSWING IN MOTION IN THE COMING WEEKS YESTERDAY THE MARKET GOT A BOOST WHEN GERMANY'S BIGGEST LABOR UNION IG METALL CONCEDED THAT IT EXPECTED A 1994 PAY RAISE THAT WOULDN'T MATCH INFLATION THIS SIGNAL OF EASED WAGE PRESSURE BOOSTED THE MACHINERY AUTO STEEL AND ELECTRONICS SECTORS GAINS ALSO STEMMED FROM THE DOLLAR'S STRENGTHENING AGAINST THE MARK AND FROM A SHARP RISE IN THE GERMAN GOVERNMENTBOND FUTURES MARKET IN PARIS STOCKS FINISHED HIGHER THOUGH THEY GAVE UP SOME GROUND ON DISAPPOINTMENT THAT WALL STREET FAILED TO RALLY ON PRIME RATE CUTS BY US BANKS BUT IN AMSTERDAM SHARE PRICES SURGED TO NEW PEAKS AS STRONG GAINS FOR DUTCH BONDS AND OTHER EUROPEAN BOURSES FUELED DEMAND AND IN STOCKHOLM EQUITIES MARCHED UP 12 TO THEIR THIRD NEW HIGH IN FOUR SESSIONS AND A 53 GAIN FOR THIS YEAR SUPPORTED BY A STRONGER SWEDISH KRONA DECLINING SWEDISH BOND AND MONEYMARKET RATES AND OPTIMISM ABOUT A CUT IN THE COUNTRY'S KEY LENDING RATE IN MILAN STOCKS ROSE PUSHED BY THE AUTO AND TELECOMMUNICATIONS SECTORS AS WELL AS DATA SHOWING ITALY'S AUGUST INDUSTRIAL OUTPUT ROSE 26 FROM A YEAR EARLIER IN MADRID EQUITIES WERE PULLED UP BY LOWER SPANISH INTEREST RATES AND STRONG PERFORMANCES BY OTHER EUROPEAN BOURSES IN ZURICH PRICES SURGED BUOYED BY SIGNS OF FURTHER DECLINES IN SWISS INTEREST RATES AND BY EXPECTATIONS OF GERMAN RATE CUTS IN BRUSSELS PRICES WERE MIXED SUPPORTED BY CHEMICAL AND BANKING SHARES PARTLY ON HOPES FOR LOWER RATES BUT THE MAIN INDEX JUMPED TO A NEW HIGH FROM FRIDAY'S RECORD LEVEL BOLSTERED BY OPTIMISM ABOUT BELGIAN LABOR NEGOTIATIONS THAT COULD IMPROVE COMPANIES' PRODUCTIVITY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 9161 POINTS FRIDAY FELL 10221 TO 2007221 BARELY ABOVE THE INTRADAY LOW OF 2007151 IN TRADING TUESDAY IN TOKYO THE NIKKEI INDEX ROSE 9981 POINTS TO CLOSE THE MORNING SESSION AT 2017202 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 220 MILLION SHARES OFF SHARPLY FROM 3382 MILLION SHARES IN THE PREVIOUS SESSION LOSERS SWAMPED GAINERS 620340 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH CLIMBED 880 POINTS FRIDAY DROPPED 532 TO 164869 THE SELLING WAS ATTRIBUTED TO SPECULATION THAT SEPTEMBER TRADE FIGURES WOULD SHOW THE FIRST NARROWING OF JAPAN'S POLITICALLY SENSITIVE TRADE SURPLUS SINCE DECEMBER 1990 AND THUS WOULD SPARK UNLOADING OF THE JAPANESE YEN BUT DATA RELEASED AFTER THE MARKET CLOSED SHOWED THAT JAPAN'S TRADE SURPLUS WIDENED IN SEPTEMBER BUCKING THE SESSION'S DOWNWARD DIRECTION COMMUNICATIONS AND TECHNOLOGY SHARES DID WELL WHILE BUYING BY PUBLIC PENSION FUNDS SUPPORTED PRICES IN THE MORNING THESE FUNDS BOWED OUT OF AFTERNOON DEALINGS ALLOWING PRICES TO SOFTEN THE WEAKNESS ALSO WAS ATTRIBUTED TO SELLING LED BY THE DERIVATIVES MARKET IN SYDNEY EQUITIES GAINED FOR THE FOURTH CONSECUTIVE SESSION AND THE MAIN INDEX TOPPED THE RECORD SET OCT 16 1987 AND IN HONG KONG SHARES SMASHED THROUGH THE 9000 LEVEL ON THE HANG SENG INDEX TO THE SIXTH RECORD HIGH IN A ROW AMID FRENZIED BUYING THAT PRODUCED RECORD TURNOVER THE MAIN BAROMETER HAS ADVANCED 21 IN THE PAST 14 SESSIONS IN WHICH IT POSTED 13 GAINS THE MARKET IN EARLY DEALINGS FELL STEEPLY ON PROFITTAKING BUT THIS WAS OVERCOME BY BANDWAGON BUYING WHICH QUICKLY ABSORBED THE LOSSES AND SENT PRICES HIGHER TAIPEI STOCKS ROSE FOR THE SEVENTH CONSECUTIVE SESSION AS TAIWAN'S PARLIAMENT CONSIDERED A CUT IN THE STOCK TRANSACTION TAX AMONG CORPORATE DEVELOPMENTS IN LONDON TRAFALGAR HOUSE PLUNGED 115 PENCE OR 12 TO 85 PENCE 129 THE DIVERSIFIED INDUSTRIAL CONCERN UNVEILED A RIGHTS ISSUE OF 400 MILLION 6053 MILLION IN CONVERTIBLE PREFERENCE SHARES TO REBUILD ITS BALANCE SHEET ITS THIRD CASH CALL IN TWO YEARS TRAFALGAR ALSO RESHUFFLED ITS EXECUTIVE SUITE IN FRANKFURT VOLKSWAGEN EASED 10 PFENNIGS TO 38220 MARKS 23647 THE AUTO MAKER DENIED A GERMAN NEWS REPORT THAT THE COMPANY IS CONSIDERING PULLING OUT OF THE US MARKET THE MAGAZINE DER SPIEGEL SAID THAT IN THIS YEAR'S FIRST NINE MONTHS VW AND AUDI BRAND CAR SALES IN THE US FELL 39 FROM A YEAR EARLIER SHRINKING VW'S MARKET SHARE TO A MINUSCULE 04 IT SAID VW WILL POST 1993 LOSSES IN NORTH AMERICA OF ABOUT 500 MILLION MARKS 3094 MILLION IN PARIS SCHNEIDER FINISHED AT 3502 FRENCH FRANCS 6116 UP 07 FRANC THE INDUSTRIAL GROUP EXPRESSED OPTIMISM THAT 1993 EARNINGS WILL RISE FROM LAST YEAR'S GROUP PROFIT OF 305 MILLION FRANCS 533 MILLION 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 9310190129 931019 LEISURE & ARTS ON SPORTS A BANNER YEAR FOR BATSMEN CONTINUED BY FREDERICK C KLEIN THERE'S NO PLEASING EVERYBODY BUT GAMES ONE AND TWO OF THE PRESENT WORLD SERIES GLADDENED THOSE WHO LIKE A LITTLE PUNCH WITH THEIR BASEBALL AND I DON'T MEAN THE LIQUID KIND THE TORONTO BLUE JAYS AND PHILADELPHIA PHILLIES COMBINED FOR 13 RUNS IN GAME ONE HERE ON SATURDAY NIGHT WITH THE JAYS GETTING EIGHT OF THEM THE SUNDAYNIGHT TALLY WAS 10 OF WHICH THE PHILS HAD SIX IN NUMBERING MYSELF AMONG THE PLEASEDWITHPUNCH I REALIZE I HAVE LINED UP ON THE SIDE OPPOSITE MANY WHO CONSIDER THEMSELVES TRUE BASEBALL FANS THESE PEOPLE LOVE TO RHAPSODIZE ABOUT CONTESTS DECIDED BY SCORES OF 10 21 OR 32 RELISHING THE INSIDE MOVES THROUGH WHICH THE OCCASIONAL BASERUNNERS ARE NUDGED ALONG BY THEIR LIGHTS A NOOUT GROUND BALL TO THE RIGHT SIDE OF THE INFIELD THAT MOVES A RUNNER FROM SECOND BASE TO THIRD SURPASSES A HOME RUN AS A FEAT OF DIAMOND SKILL SUCH FOLKS I THINK ARE GONNA LOVE NEXT SUMMER'S WORLD CUP OF SOCCER A SPORT IN WHICH 00 OUTCOMES ARE COMMON AND THREE GOALS IS THE EQUIVALENT OF A SLUGFEST THEY'LL BE THE TYPES SAYING WE SHOULD APPRECIATE THE MIDFIELD PLAY OF THAT SPORT EVEN THOUGH TO EYES NAKED AND CLOTHED IT LOOKS INCONSEQUENTIAL IF JUNE'S TOO LONG FOR THEM TO WAIT SPRING FASTPITCH SOFTBALL CAN TIDE THEM OVER WITH A GOOD WINDMILLER ON THE MOUND ANY BALL HIT FAIR IS CAUSE FOR CELEBRATION A MAIN PROP OF BASEBALL'S LESSISMORE SCHOOL IS THE GAME'S ADAGE THAT GOOD PITCHING BEATS GOOD HITTING BUT I'VE ALWAYS CONSIDERED IT SUSPECT THAT'S BECAUSE WHILE IT'S EASY TO IDENTIFY A WELLPITCHED GAME BY ITS LOW SCORE WHENEVER THE RUN TALLY SOARS IT'S ARGUED THAT THE HITTERS WEREN'T NECESSARILY BETTER IT WAS THAT THE PITCHERS WERE OFF I ASK YOU IS THAT FAIR TO THE HITTERS HUH HUH IT'S FITTING THAT THE 23RUN TOTAL FOR THE FIRST TWO GAMES OF THE 90TH FALL CLASSIC WHICH MOVES TO PHILADELPHIA TONIGHT WAS THE HIGHEST IN 29 YEARS ALTHOUGH IT'S BEEN EQUALLED A FEW TIMES SINCE THIS HAS BEEN A BANNER YEAR FOR BATSMEN IN BOTH THE NATIONAL LEAGUE WHICH UNDERWENT EXPANSION AND THE AMERICAN LEAGUE WHICH DIDN'T THE TREND CARRIED THROUGH THE POSTSEASON TORONTO'S VICTIM IN THE AMERICAN LEAGUE PLAYOFF WAS THE CHICAGO WHITE SOX WHO LED THAT CIRCUIT IN EARNED RUN AVERAGE WHILE THE PHILS PHLOGGED THE ATLANTA BRAVES WHO HAD EARNED THAT DISTINCTION IN THE OTHER ONCE THE BLUE JAYS HAD UNRAVELED THE SOX I PULLED FOR THE BRAVES IN THE NL IF ONLY BECAUSE A TORONTO VS ATLANTA SERIES WOULD HAVE POSED THE CLEARESTCUT PITCHING VS HITTING DUEL IN ONE DUGOUT YOU'D HAVE HAD THE STAFF THE FOUR ATLANTA STARTERS GREG MADDUX TOM GLAVINE STEVE AVERY AND JOHN SMOLTZ TOUTED AS THE GREATEST THING SINCE THE ROSIN BAG IN THE OTHER YOU'D HAVE HAD A JAYS LINEUP WITH THE THREE TOPAVERAGE HITTERS IN THE AMERICAN LEAGUE JOHN OLERUD PAUL MOLITOR AND ROBERTO ALOMAR AND A GUY WHO BATTED IN 121 RUNS DURING THE REGULAR SEASON JOE CARTER THAT THE OTHER JAYS ARE NO SLOUCHES WITH THE STICK IS WITNESSED BY THE FACT THAT CATCHER PAT BORDERS THEIR NO 9 HITTER WHEN THE DESIGNATEDHITTER RULE IS IN EFFECT WAS THE MOST VALUABLE PLAYER OF THE 1992 WORLD SERIES IN WHICH HE BATTED 450 THE PHILS DIDN'T LEAD THE NATIONAL LEAGUE IN TEAM BATTING AVERAGE THE SAN FRANCISCO GIANTS DID BUT THEY WERE TOPS IN SUCH KEY OFFENSIVE CATEGORIES AS HITS RUNS AND TOTAL BASES AND SO AT LEAST A FALL FIX SEEMED CERTAIN FOR US O ADDICTS IT TOOK NO TIME AT ALL FOR THIS TO COME TO PASS FOUR OF THE FIRST FIVE PHILLIES BATTERS REACHED BASE IN THE TOP OF THE FIRST INNING IN THE SKYDOME AND TWO OF THEM SCORED RUNS WOULD COME ACROSS IN SEVEN OF THE NINE INNINGS WHICH IS ALMOST AS GOOD AS IT GETS THE JAYS RALLIED TO WIN 85 PARTLY BECAUSE OF HOME RUNS BY THEIR LEFTHANDED FIRST BASEMAN OLERUD AND DEVON WHITE THEIR SMOOTHSWINGING CENTER FIELDER OLERUD IS THE YOUNG MAN WHO AFTER NEVER AVERAGING BETTER THAN 284 IN ANY OF HIS FIRST THREE MAJORLEAGUE SEASONS HIT 400 OR BETTER INTO AUGUST OF THIS YEAR AND WOUND UP WITH A LEAGUELEADING 363 SUCH IS THE REVERENCE WITH WHICH HE'S HELD HEREABOUTS THAT A SIGN READING JOHN363 PARODYING THE FAMILIAR BIBLE BOOSTERS' BANNER HUNG FROM THE DOME'S UPPER DECK SUNDAY NIGHT THE MOST INTERESTING THING ABOUT OLERUD IS THAT DESPITE HIS LOFTY AVERAGE THIS SEASON AT AGE 25 HE'S STILL LEARNING HIS TRADE AND GROWING INTO HIS 6FOOT5INCH FRAME AS HE DOES HIS HOMERUN TOTAL WHICH REACHED 24 IN THE JUSTCONCLUDED CAMPAIGN SHOULD GROW APACE HE ALLOWED AS MUCH SATURDAY WHEN IT WAS POINTED OUT TO HIM THAT HIS FIFTHINNING HOMER OFF CURT SCHILLING WHICH GAVE HIS TEAM A LEAD IT NEVER RELINQUISHED WAS HIT VIRTUALLY ONEHANDED I WAS A LITTLE OUT IN FRONT OF THE BALL IT WASN'T MY USUAL HOMERUN SWING HE SAID THEN HE PAUSED AND ADDED I GUESS I DON'T REALLY HAVE A USUAL' HOMERUN SWING YET BUT I'M WORKING ON IT CARTER HIT A TWORUN HOME RUN FOR THE JAYS ON SUNDAY BUT IT WAS TRUMPED BY A COUPLE OF PHILLIE SHOTS THE BIG BLOW CAPPING A FIVERUN THIRD INNING THAT SUFFICED TO CAPTURE THE 64 CONTEST WAS A THREERUN HOMER BY RIGHT FIELDER JIM EISENREICH HE'S THE PLAYER WHO MISSED TWO FULL SEASONS AND MOST OF TWO OTHERS FIGHTING TOURETTE'S SYNDROME A RARE NERVOUS DISORDER CENTER FIELDER LENNY DYKSTRA GOT THE OTHER LATER IF NOT FOR SOME FIELDING GEMS SUNDAY'S RUN COUNT WOULD HAVE BEEN HIGHER AND THE OUTCOME MIGHT HAVE BEEN DIFFERENT THAT'S ANOTHER NICE THING ABOUT OFFENSE WITHOUT HARDHIT BALLS YOU CAN'T HAVE GREAT DEFENSIVE PLAYS DYKSTRA MADE A COUPLE INCLUDING ONE IN WHICH HE BOUNCED HARD OFF THE OUTFIELD FENCE AFTER CATCHING A FOURTHINNING DRIVE BY ALOMAR DYKSTRA WHO EXEMPLIFIES THE PHILS' SPITTIN' IMAGE PUT ASIDE HIS CHAW TO ADDRESS THE PRESS AFTER THE GAME YEAH HE SAID HIS HOME RUN PROVED SUPERFLUOUS SUNDAY BUT HE WOULDN'T CALL IT WASTED YOU CAN'T EVER HAVE TOO MANY RUNS AGAINST THOSE GUYS THE JAYS SAID HE SOUNDED GOOD TO ME 9310190128 931019 U S WEST IN RUSSIAN VENTURE MOSCOW U S WEST INTERNATIONAL SAID IT FORMED A JOINT STOCK COMPANY WITH RUSSIAN TELECOMMUNICATIONS PARTNERS TO OFFER WIRELESS AND CELLULAR TELEPHONE SERVICES IN THE RUSSIAN FAR EAST U S WEST INTERNATIONAL A UNIT OF U S WEST INC SAID UNITED TELECOM FAR EAST THE NEW COMPANY WILL ACQUIRE THE RIGHTS TO DIGITAL CELLULAR LICENSES IN EASTERN SIBERIA AND WILL SERVE THE CITIES OF KHABAROVSK PETROPAVLOVSKKAMCHATSKII AND BLAGOVESCHENSK ALONG WITH ITS RUSSIAN PARTNERS DAL TELECOM INTERNATIONAL UNITED TELECOM AND VARTELECOM U S WEST THROUGH THE NEW COMPANY WILL PROVIDE LOCAL CELLULAR PHONE SERVICE AND CONNECTIONS TO LONGDISTANCE AND OVERSEAS NETWORKS 9310190127 931019 WHO'S NEWS RAMSAY HEALTH CARE INC RAMSAY HEALTH CARE INC NEW ORLEANS REYNOLD J JENNINGS 47 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER AND EXECUTIVE VICE PRESIDENT OF THIS PSYCHIATRIC SERVICES COMPANY MR JENNINGS WAS A SENIOR VICE PRESIDENT AT NATIONAL MEDICAL ENTERPRISES INC 9310190126 931019 FOREIGN EXCHANGE DOLLAR GAINS ACROSS BOARD AFTER BREAK ABOVE TECHNICAL LEVEL AGAINST THE MARK BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR ROSE ACROSS THE BOARD MONDAY AFTER A BREAK ABOVE A KEY TECHNICAL LEVEL AGAINST THE MARK PROMPTED SOME STOPLOSS BUYING OF THE US CURRENCY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16390 MARKS UP FROM 16185 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10740 YEN UP FROM 10715 YEN STERLING WAS TRADING AT 14860 DOWN FROM 15105 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10737 YEN AND AT 16415 MARKS DEALERS SAID THE DOLLAR'S RISE WAS PRIMARILY DUE TO SOME TECHNICALLY INSPIRED TRADING LATE IN THE NEW YORK DAY BUT THEY ADDED THAT GROWING EXPECTATIONS OF A CUT IN GERMAN INTEREST RATES ALSO GAVE THE DOLLAR SOME SUPPORT AGAINST THE MARK THEY NOTED THAT AFTER THE DOLLAR REBOUNDED FROM SEVERAL ATTEMPTS TO PUSH IT BELOW THE 160MARK LEVEL LAST WEEK PLAYERS DECIDED TO REVERSE COURSE MONDAY AND TEST HOW HIGH THE DOLLAR COULD CLIMB AGAINST ITS GERMAN COUNTERPART WITHOUT IGNITING DETERMINED DOLLAR SALES AND WHEN MANY INVESTORS WERE STILL ENTHUSIASTICALLY BUYING THE DOLLAR AS IT BREACHED A CLOSELY WATCHED TECHNICAL LEVEL AT 16310 MARKS PLAYERS DECIDED TO JUMP ABOARD FOR THE RIDE STEPPING IN WITH A ROUND OF DOLLAR BUYING THAT BOOSTED THE DOLLAR A FULL PFENNIG IN A MATTER OF MINUTES THE BULLS ARE TRYING TO REASSERT THEMSELVES SAID HILLEL WAXMAN VICE PRESIDENT AT BANK LEUMI TRUST CO IN NEW YORK WE HAD RESISTANCE AT 16310 MARKS AND WE JUST BLEW THROUGH IT HE SAID ALSO HELPING THE DOLLAR MR WAXMAN AND OTHER TRADERS NOTED WERE RENEWED HOPES THAT GERMANY'S HIGH INTEREST RATES MAY BE CLOSE TO DROPPING SLIGHTLY TRADERS ARE LOOKING FORWARD TO THE BUNDESBANK'S SECURITIESREPURCHASE OPERATION ON WEDNESDAY FOR AN EASING IN GERMANY'S KEY INTEREST RATES WHICH HAVE GIVEN STRONG SUPPORT TO THE MARK AS INVESTORS MOVE INTO HIGHYIELDING GERMAN DEPOSITS THEY ARE HOPING THAT THE GERMAN CENTRAL BANK WILL SHAVE A FEW BASIS POINTS FROM ITS 67 REPO RATE WHICH COULD ALSO SIGNAL THAT EASING OF THE BUNDESBANK'S 625 DISCOUNT RATE AND 725 LOMBARD RATE ARE IMMINENT PERHAPS AS SOON AS THURSDAY'S MEETING OF THE BANK'S POLICYMAKING COUNCIL PARADOXICALLY THE MARKET SHRUGGED OFF A MOVE BY TWO US COMMERCIAL BANKS MONDAY TO LOWER THEIR PRIME LENDING RATES TO 55 IN A BID TO SPUR DEMAND FOR LOANS TRADERS NOTED THAT THE US PRIME RATE THE BASE INTEREST RATE THAT COMMERCIAL BANKS CHARGE ON LOANS TO THEIR BIGGEST BORROWERS WITH THE BEST CREDIT RATINGS IS NO LONGER AS INFLUENTIAL AS IT ONCE WAS GIVEN THE MANY OTHER ALTERNATIVE FORMS OF FINANCING PEGGED TO OTHER BENCHMARKS SUCH AS THE LONDON INTERBANK OFFERED RATE ALSO SOME TRADERS NOTED THAT THE LOWER INTEREST RATES COULD ADD MORE SPARK TO THE US RECOVERY IF ANYTHING IT SHOULD STIMULATE THE ECONOMY A LITTLE BIT SAID DENNIS PETTIT FOREIGN EXCHANGE MANAGER AT LONGTERM CREDIT BANK OF JAPAN THE DOLLAR ALSO GAINED STRONGLY AGAINST THE POUND WHICH WAS WEAKENED BY FURTHER SPECULATION OVER CUTS IN BRITISH INTEREST RATES THE MARKET HAS LONG EXPECTED AN 050 CUT IN BRITAIN'S 6 BASE RATE AROUND THE TIME OF THE CHANCELLOR OF THE EXCHEQUER'S NOVEMBER BUDGET STATEMENT NOW SOME PLAYERS HAVE BEGUN TO FACTOR IN A FULLPERCENTAGEPOINT CUT IN THAT RATE NOW THEY DON'T TALK OF IF OR MAYBE BUT THE CONCERN IS NOW HOW MUCH OF A CUT BANK LEUMI'S MR WAXMAN SAID 9310190125 931019 BUSINESS BRIEF AMPHENOL CORP PROFIT MORE THAN DOUBLED ON 3RDQUARTER CABLE SALES AMPHENOL CORP SAID NET INCOME FOR THE THIRD QUARTER MORE THAN DOUBLED PARTLY BECAUSE OF STRONG SALES OF COAXIAL CABLE FOR CABLETELEVISION AND TELEPHONE APPLICATIONS AMPHENOL A WALLINGFORD CONN MAKER OF CONNECTORS AND CABLES FOR THE ELECTRONICS CABLETELEVISION AND AEROSPACE INDUSTRIES SAID NET FOR PERIOD ROSE TO 69 MILLION OR 16 CENTS A SHARE FROM 31 MILLION OR 10 CENTS A SHARE A YEAR EARLIER THE RESULTS REFLECT THE IMPACT OF AN ADDITIONAL 101 MILLION SHARES ISSUED IN THE ACQUISITION OF LPL TECHNOLOGIES INC IN DECEMBER 1992 ON A PROFORMA BASIS AS IF THE ACQUISITION OCCURRED JAN 1 1992 NET INCOME FOR THE 1992 THIRD QUARTER WOULD BE 5 MILLION OR 12 CENTS A SHARE SALES FOR THE 1993 THIRD QUARTER ROSE 34 TO 1505 MILLION FROM 1223 MILLION A YEAR EARLIER 9310190124 931019 INTERNATIONAL BULL FRANCE'S AILING COMPUTER MAKER TO GET A CASH INJECTION ONE LAST TIME BY CHARLES FLEMING STAFF REPORTER OF THE WALL STREET JOURNAL PARIS THE FRENCH GOVERNMENT SAID IT WOULD PUMP A LARGE AMOUNT OF MONEY ONE LAST TIME INTO ITS AILING NATIONAL COMPUTER MAKER CIE DES MACHINES BULL AT THE SAME TIME THE GOVERNMENT DISMISSED THE COMPANY'S CHIEF EXECUTIVE OFFICER AND NAMED A CONTROVERSIAL NEW CHAIRMAN WITH LITTLE COMPUTER EXPERIENCE TO PREPARE THE STATEOWNED GROUP FOR ITS EVENTUAL PRIVATIZATION INDUSTRY MINISTER GERARD LONGUET SAID FRANCE WAS READY TO GIVE BULL A FURTHER SEVEN BILLION FRANCS 12 BILLION IN NEW CAPITAL ON TOP OF A 25 BILLION FRANC PACKAGE GRANTED EARLIER THIS YEAR BUT HE SAID THAT IT WAS THE LAST GOVERNMENT BAILOUT THE GOVERNMENT HAS ASKED BULL TO PUT FORWARD A STRATEGY WHICH WILL ALLOW A LASTING RECOVERY AND PUT AN END TO THE STATE'S CAPITAL INCREASES MR LONGUET TOLD A NEWS CONFERENCE MR LONGUET ALSO SAID THAT JEANMARIE DESCARPENTRIES A FORMER PACKAGING COMPANY EXECUTIVE WOULD TAKE OVER FROM CURRENT CHAIRMAN BERNARD PACHE IMMEDIATELY MR PACHE FORMER CHIEF EXECUTIVE OF A FRENCH STATEOWNED COAL MINING COMPANY WAS NAMED TO THE TOP JOB AT BULL ONLY 16 MONTHS AGO BULL WHICH LOST ALMOST FIVE BILLION FRANCS LAST YEAR AND 2 BILLION MORE IN THE FIRST SIX MONTHS OF 1993 HAS BEEN A HEADACHE FOR SUCCESSIVE FRENCH GOVERNMENTS STRUGGLING TO SUPPORT A NATIONAL PLAYER IN WHAT IS CONSIDERED A STRATEGIC SECTOR EFFORTS TO KEEP BULL AFLOAT HAVE BECOME INCREASINGLY DELICATE BECAUSE OF A GAPING GOVERNMENT DEFICIT AND EUROPEAN COMMUNITY RULES THAT SEVERELY LIMIT SUBSIDIES TO STATEOWNED COMPANIES THE EUROPEAN COMMISSION IN BRUSSELS WHICH IS STILL CONSIDERING WHETHER TO APPROVE BULL'S 25 BILLION FRANC PACKAGE FOR FEBRUARY HASN'T YET RECEIVED DETAILS OF THE LATEST PLANS FOR BULL AND WAS UNABLE TO COMMENT AN EC SPOKESMAN SAID IN ADDITION TO THE STATE'S NEXT 7 BILLION FRANC INJECTION ANOTHER BULL SHAREHOLDER STATECONTROLLED FRANCE TELECOM WILL CONTRIBUTE A FURTHER 16 BILLION FRANCS THE INTENTIONS OF BULL'S TWO FOREIGN PARTNERS INTERNATIONAL BUSINESS MACHINES CORP AND JAPAN'S NEC CORP EACH WITH ABOUT 5 OF BULL'S CAPITAL AREN'T YET CLEAR IF IBM AND NEC ALSO AGREE TO PUT UP MONEY THE FRENCH GOVERNMENT WILL FIND IT EASIER TO PERSUADE THE EC COMMISSION THAT BULL HAS A SOUND BUSINESS FUTURE AND IS NOT RELIANT ON A POLITICALLY INSPIRED LIFESUPPORT SYSTEM SPEAKING ALONGSIDE MR LONGUET YESTERDAY MR DESCARPENTRIES THE NEW CHAIRMAN SAID REPEATEDLY THAT IT WAS IMPORTANT TO MOVE FAST TO TURN BULL AROUND THERE ISN'T A SECOND TO WASTE HE SAID HOWEVER HE APPEARED TO RULE OUT ANY SIGNIFICANT CHANGES IN STRATEGY INCLUDING DROPPING THE GROUP'S PERSONAL COMPUTER BUSINESS LINES AS HAD BEEN SUGGESTED BY THE GOVERNMENT DURING THE SUMMER I AM CONVINCED THAT THE RIGHT STRATEGIC DECISIONS ARE ALREADY WITHIN THE GROUP AND THAT OUR PRIORITY IS TO RAPIDLY IMPROVE THE EFFICIENCY OF OUR OPERATIONS HE SAID THAT WILL PROBABLY MEAN LAYING OFF MORE OF BULL'S 31000 WORKERS WORLDWIDE A TRICKY TASK THAT COULD QUICKLY BRING MR DESCARPENTRIES INTO CONFLICT WITH THE STATE WHICH IS COMMITTED TO FIGHTING FRANCE'S DOUBLEDIGIT UNEMPLOYMENT MR DESCARPENTRIES WAS PUSHED OUT OF CARNAUD SA TWO YEARS AFTER ITS 1989 MERGER WITH BRITAIN'S METAL BOX PLC AT THE TIME HIS DEPARTURE WAS EXPLAINED AS PART OF THE ANGLOFRENCH GROUP'S REORGANIZATION BUT INDUSTRY OBSERVERS SAID THAT HE HAD RILED BRITISH SHAREHOLDERS AFTER HIS MANAGEMENT METHODS FAILED TO DELIVER HIGHER EARNINGS ALTHOUGH MR DESCARPENTRIES HAS NOT WORKED FOR A COMPUTER MANUFACTURER BEFORE HE SERVED SIX YEARS ON BULL'S BOARD OF DIRECTORS UNTIL 1992 GIVING HIM A RINGSIDE SEAT AS THE GROUP PLOWED INTO THE RED FROM ITS MODEST PROFIT IN 1986 9310190123 931019 WHO'S NEWS SG WARBURG GROUP PLC SG WARBURG GROUP PLC LONDON GERARD EASTMAN WAS NAMED SENIOR VICE PRESIDENT INVESTMENT BANKING OF THE SG WARBURG & CO UNIT A NEW POSITION MR EASTMAN WAS FORMERLY A DIRECTOR OF THE EUROPEAN TECHNOLOGY GROUP AT LEHMAN BROTHERS INTERNATIONAL IN LONDON A DIVISION OF LEHMAN BROTHERS INC AN INVESTMENT BANKING FIRM 9310190122 931018 REPORT ON ASIA A TSUNAMI OF MONEY CROSSES THE PACIFIC BUT SOME ISN'T WELCOME BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG FROM SYDNEY TO SEOUL BROKERS ON THIS SIDE OF THE PACIFIC ARE TALKING ABOUT THE TIDE OF US MONEY THAT IS LAPPING UP ON THEIR SHORES IT CONTINUES TO POUR IN SAYS MARY MCBAIN HEAD OF HONG KONG RESEARCH AT GK GOH SECURITIES HK LTD US INVESTORS WILL BE VERY SIGNIFICANT TO ASIA'S MARKETS NEXT YEAR PREDICTS NICHOLAS PEACOCK DIRECTOR OF REGIONAL RESEARCH AT SCHRODERS SECURITIES HK LTD THE MANAGERS AT WISCONSINBASED STRONGCORNELIUSON CAPITAL MANAGEMENT INC COULDN'T AGREE MORE LIKE MANY OTHER BIG MONEY MANAGERS ACROSS AMERICA'S HEARTLAND THE STRONG FUNDS ARE SO DRAWN TO THIS REGION'S STOCK MARKETS THAT AS MUCH AS TWOTHIRDS OF THE MORE THAN 500 MILLION THEY HAVE SENT OVERSEAS SINCE 1991 HAS CROSSED THE PACIFIC BUT NOT ALL OF ASIA'S STOCK MARKETS ARE SO ENTHUSIASTIC ABOUT AMERICAN OR OTHER FOREIGN INVESTORS IN FACT WHEN FUND MANAGERS FROM COMPANIES LIKE STRONGCORNELIUSON VISIT ASIA THEY ARE GREETED BY A WELCOME MAT OF STICKY RED TAPE THE RESULT IS THAT SOME CAPITAL NEEDED TO FUND ASIA'S EXPANSION IS BEING DRIVEN BACK TO THE US OR INTO LESSREGULATED CAPITAL MARKETS IN EUROPE OR LATIN AMERICA HOW QUICKLY THE REGION'S MARKETS ABANDON THEIR OUTMODED CAPITAL RESTRICTIONS WILL SAY MUCH ABOUT ASIA'S FUTURE PACE OF GROWTH WANT TO BUY AN INDIAN SHARE FIRST YOU MUST GIVE REGULATORS IN BOMBAY FIVE YEARS OF AUDITED FINANCIAL STATEMENTS AND THEN WAIT FOR PERMISSION MEANWHILE GOOD LUCK FINDING A SOUTH KOREAN BLUECHIP STOCK FOREIGNERS HAVE ALREADY BOUGHT ALL OF THE BLUECHIP SHARES THAT HAVE BEEN ALLOTTED BY AUTHORITIES AND NOW MUST TRADE AMONG THEMSELVES IN FACT FOREIGN RETAIL INVESTORS CAN'T BUY ANY EQUITY IN INDIA KOREA AND TAIWAN NO MATTER HOW HARD THEY TRY RULES IN EACH MARKET BAR SALES TO INDIVIDUAL FOREIGNERS THAT THREESOME MAINTAINS ASIA'S TOUGHEST RESTRICTIONS ON FOREIGN OWNERSHIP IN THAILAND FOREIGNERS NOW CAN BUY AS MUCH AS 49 OF A COMPANY'S LISTED EQUITY IN MOST CASES BUT HAVING REACHED THAT LIMIT THEY MUST THEN TRADE THEIR SHARES ON A FOREIGNERSONLY BOARD WHERE THE SHORT SUPPLY GENERALLY INDUCES HIGHER PRICES THAN THOSE COMMANDED FOR IDENTICAL SHARES TRADED ON THE LOCAL EXCHANGE MALAYSIA INDONESIA AND SINGAPORE MAKE SIMILAR DISTINCTIONS BETWEEN LOCAL AND FOREIGN SHAREHOLDERS EVEN JAPAN WHICH IS OFFICIALLY FULLY OPEN TO FOREIGN INVESTMENT HAD FOREIGN FUND MANAGERS COMPLAINING IN AUGUST THAT LOCAL BROKERAGE FIRMS WERE CUTTING THEM OUT OF THE PRIVATIZATION OF EAST JAPAN RAILWAY CO ONLY IN HONG KONG AUSTRALIA NEW ZEALAND AND PAKISTAN DO FOREIGN FUND MANAGERS SEEM SATISFIED THAT BROKERS AND REGULATORS TREAT THEM THE SAME AS LOCALS THE RESTRICTIONS MAKE LITTLE SENSE IN LIGHT OF THE REGION'S HUGE DEMAND FOR CAPITAL ACROSS ASIA AS MUCH AS 600 BILLION WILL BE NEEDED TO PAY FOR INFRASTRUCTURE DEVELOPMENT IN THE NEXT FIVE YEARS ACCORDING TO A RECENT STUDY BY CS FIRST BOSTON GROUP MORGAN STANLEY ASIA LTD PREDICTS THAT THE TOTAL MARKET CAPITALIZATION OF REGIONAL EXCHANGES NOT INCLUDING THOSE IN JAPAN CHINA AND THE INDIAN SUBCONTINENT COULD RISE AS HIGH AS 33 TRILLION BY THE YEAR 2000 A 433 INCREASE OVER TODAY'S FIGURE AND AN AMOUNT AS LARGE AS THE CURRENT CAPITALIZATION OF ALL US STOCK MARKETS COMBINED SO WHY WHEN FOREIGNERS ARE EAGER TO JUMP ON THE BANDWAGON DO ASIAN REGULATORS BEHAVE THIS WAY THE REASONS ARE EMOTIONAL HAVING MORE TO DO WITH NATIONALISM AND A DISTRUST OF SPECULATION THAN WITH ECONOMICS KOREA IS NOTORIOUSLY INSULAR EVEN XENOPHOBIC SO IT BARS FOREIGNERS FROM OWNING MORE THAN 10 OF ANY COMPANY'S LISTED SHARES TAIWAN'S SUSPICIOUS VIEW OF OUTSIDERS ALSO STEMS FROM A CENTURIESOLD TRADITION AS WELL AS FROM ITS MODERN STANDOFF WITH THE CHINESE MAINLAND AND INDIA IS ONLY NOW EMERGING FROM A LONG FAILED ATTEMPT AT ACHIEVING ECONOMIC SELFRELIANCE AS THESE COUNTRIES OPEN THEMSELVES TO THE WORLD FOREIGN SHAREOWNERSHIP BECOMES A POLITICAL HOT POTATO MANY NATIONALISTS ARGUE THAT LETTING FOREIGNERS BUY SHARES BEFORE LOCALS ARE WEALTHY ENOUGH TO COMPETE WITH THEM IN THE STOCK MARKET AMOUNTS TO SELLING OFF THEIR COUNTRY'S ASSETS AT A DISCOUNT CENTRAL BANKERS WORRY THAT A TIDE OF FOREIGN CASH EXCHANGED FOR SHARES WILL UNDERMINE THEIR GRIP ON LOCAL CURRENCIES ASIAN GOVERNMENTS ALSO WANT TO GUARD THEIR FINANCIAL SYSTEMS AGAINST WHAT THEY SEE AS HOT MONEY THE KIND THAT WILL FLY ELSEWHERE THE MOMENT THE GOING GETS A LITTLE ROUGH OR A NEW OPPORTUNITY COMES ALONG SO TAIWANESE AND INDIAN REGULATORS FOR INSTANCE WANT TO KNOW THAT FOREIGN INVESTORS ARE QUALIFIED TO HOLD STOCKS IN TAIWAN THAT MEANS STOCKHOLDERS MUST BE BANKS INSURANCE COMPANIES ASSETMANAGEMENT COMPANIES AND FOREIGN BROKERS SAYS CHARLOTTE LEE HEAD OF THE INTERNATIONAL DEPARTMENT AT CAPITAL SECURITIES CORP IN TAIPEI BUT NOT JUST ANY BANK IT HAS TO BE ONE OF THE WORLD'S 500 LARGEST IN TERMS OF THE VALUE OF ITS ASSETS AND IT MUST HOLD MORE THAN 300 MILLION OF THOSE ASSETS IN THE FORM OF SECURITIES LIKEWISE COMPANIES HOPING TO INVEST IN INDIA NEED TO DEMONSTRATE YEARS OF EXPERIENCE MANAGING SECURITIES FOREIGN INVESTORS MAY COMPLAIN ABOUT SUCH LIMITS BUT THE REGION'S ECONOMIES STAND TO BE THE REAL LOSERS RECOGNIZING THIS SOME COUNTRIES THAT IN THE PAST HAVE BEEN AMONG THE MOST SUSPICIOUS OF FOREIGN INVESTMENT ARE BEGINNING TO CHANGE CHINA HAS MOVED SWIFTLY FROM FULL GOVERNMENT OWNERSHIP OF ALL OF ITS COMPANIES TO ALLOWING FOREIGNERS TO HOLD MINORITY STAKES IN NEWLY PUBLIC FIRMS LISTED IN HONG KONG OR ON THE COUNTRY'S TWO EXCHANGES IN SHANGHAI AND SHENZHEN ITS MARKET REGULATORS NOW COMPEL THOSE COMPANIES TO PROVIDE FOREIGN INVESTORS WITH FINANCIAL ACCOUNTS DRAFTED ACCORDING TO INTERNATIONAL STANDARDS SEVERAL ANALYSTS EXPECT BEIJING SOON TO DISMANTLE THE BARRIERS PREVENTING LOCALS FROM TRADING FOREIGN SHARES IN ORDER TO BUOY THE MARKET FOR FOREIGNERONLY B SHARES MEANWHILE KOREAWATCHERS EXPECT SEOUL TO RAISE THE FOREIGN HOLDING LIMITS ON ITS SHARES BY JANUARY THAILAND IS ON THE VERGE OF WIDENING FOREIGNERS' ACCESS TO ITS EXCHANGE BY SETTING UP SEPARATE UNIT TRUSTS EACH HOLDING SHARES OF ONE LISTED THAI COMPANY IN WHICH FOREIGNERS CAN INVEST RESTRICTIONS ON FOREIGN INVESTORS IN ASIAN STOCK MARKETS AUSTRALIA NO MAJOR RESTRICTIONS ON FOREIGN INVESTMENT CHINA FOREIGNERS CAN HOLD CLASS BSHARES ONLY HONG KONG NO MAJOR RESTRICTIONS ON FOREIGN INVESTMENT INDIA ONLY FOREIGN INSTITUTIONS APPROVED BY REGULATORS CAN OWN SHARES INDONESIA FOREIGNERS CAN HOLD NO MORE THAN 49 OF A COMPANY'S LISTED SHARES JAPAN NO MAJOR RESTRICTIONS ON FOREIGN INVESTMENT MALAYSIA FOREIGNERS RESTRICTED TO LESS THAN 30 OF SELECTED COMPANIES' SHARES PHILIPPINES FOREIGNERS CAN HOLD NO MORE THAN 40 OF COMPANIES IN SELECTED INDUSTRIES SINGAPORE VARYING LIMITS ON THE AMOUNT OF SHARES FOREIGNERS CAN HOLD IN COMPANIES IN STRATEGIC SECTORS SUCH AS BANKING SOUTH KOREA FOREIGNERS CAN HOLD NO MORE THAN 10 OF A COMPANY'S STOCK THAILAND FOREIGNERS CAN HOLD NO MORE THAN 49 OF MOST COMPANIES' SHARES 9310190121 931019 FIRST UNION CORP TO ACQUIRE LIEBER AS MORE BANKS SHOP FOR MUTUAL FUNDS BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL FIRST UNION CORP AGREED TO ACQUIRE LIEBER & CO FOR APPROXIMATELY 128 MILLION IN STOCK IN A TRANSACTION THAT ACCELERATES THE BANKING INDUSTRY'S PUSH INTO THE MUTUALFUND BUSINESS THE ACQUISITION OF LIEBER WHICH MANAGES THE 33 BILLION EVERGREEN MUTUAL0FUND GROUP WILL NEARLY DOUBLE THE AMOUNT OF MUTUALFUND ASSETS MANAGED BY FIRST UNION WHAT'S MORE THE TRANSACTION ACCORDING TO MANY INDUSTRY ANALYSTS MAY BE THE FIRST OF A SERIES IN WHICH BANKS MAKE A GRAB FOR MUTUALFUND MANAGEMENT COMPANIES WE'RE IN DISCUSSIONS WITH QUITE A FEW MAJOR BANKS THAT ARE SHOPPING AROUND SAID MARY PAT THORNTON AN INVESTMENT BANKER AT PUTNAM LOVELL IN NEW YORK AS INTEREST RATES HAVE DROPPED AND STOCK PRICES HAVE SOARED IN RECENT YEARS BANKS HAVE WATCHED DEPOSITORS MOVE THEIR MONEY INTO INVESTMENT VEHICLES LIKE MUTUAL FUNDS IN RESPONSE FIRST UNION AND OTHERS HAVE DIVERSIFIED THEIR OFFERINGS MARKETING MUTUAL FUNDS SECURITIES AND INVESTMENT BANKING SERVICES AMONG OTHERS IN AN EFFORT TO RECAPTURE THOSE FLEEING FUNDS AS WELL AS GENERATE MORE FEE INCOME TRADITIONALLY BANKS HAVE DEVELOPED THEIR OWN MUTUAL FUNDS BUYING A COMPANY LIKE LIEBER SPEEDS THE PROCESS DRASTICALLY THE EVERGREEN ACQUISITION WILL SUPPLEMENT AN AMBITIOUS MUTUALFUND MARKETING PROGRAM ALREADY UNDER WAY AT FIRST UNION THE CHARLOTTE NC BANK HOLDING COMPANY HAS BEGUN A BIG TRAINING PROGRAM THAT ULTIMATELY WILL ENABLE 2600 BRANCH BANKERS TWO AT EVERY BRANCH TO SELL MUTUAL FUNDS BETWEEN THEM FIRST UNION AND EVERGREEN RUN 28 DIFFERENT FUNDS FIRST UNION'S RETAIL MUTUAL FUNDS LEVY A SALES COMMISSION OR LOAD ON SHAREHOLDERS WHILE EVERGREEN'S NOLOADS CHARGE NO SALES COMMISSIONS AFTER THE MERGER FIRST UNION SAID IT WILL BEGIN APPLYING LOAD FEES TO MANY NEW EVERGREEN ACCOUNTS BUT THE BANK WILL GRANDFATHER IN EXISTING CUSTOMERS SO THAT SERVICES DON'T CHANGE FOR PREVIOUS CUSTOMERS UNDER THE TERMS OF THE FIRST UNIONLIEBER AGREEMENT FIRST UNION WILL ISSUE 31 MILLION SHARES IN A TRANSACTION SLATED FOR COMPLETION IN THE FIRST QUARTER OF NEXT YEAR THE BANK SAID THE DEAL WON'T DILUTE 1994 EARNINGS AND SHOULD INCREASE PROFIT IN FOLLOWING YEARS NONETHELESS BY SOME STANDARDS THE PRICE FIRST UNION IS PAYING FOR LIEBER BASED IN PURCHASE NY IS HIGH INDUSTRY SPECIALISTS SAID THE SHARES OF PUBLICLY TRADED FUND GROUPS SELL FOR ABOUT 28 OF ASSETS UNDER MANAGEMENT ACCORDING TO PUTNAM LOVELL WHILE FIRST UNION PAID ABOUT 36 OF TOTAL ASSETS MANAGED BY EVERGREEN MOREOVER IN RECENT YEARS EVERGREEN'S GROWTH HAS BEEN UNEVEN SINCE DECEMBER 1987 THE FUNDS' ASSETS HAVE INCREASED BY 50 ACCORDING TO AVI NACHMANY AN ANALYST AT THE CONSULTING FIRM STRATEGIC INSIGHT IN NEW YORK MEANWHILE THE MUTUALFUND INDUSTRY HAS INCREASED THREEFOLD HE SAID BUT FIRST UNION SAID IT BELIEVES ITS MARKETING INFRASTRUCTURE WILL HELP EXPAND THE FUNDS INDEED THE BANK'S FIVEYEAR PLAN CALLS FOR ITS MUTUALFUND PORTFOLIO TO GROW TO 25 BILLION UNDER MANAGEMENT WHEN ASKED YESTERDAY ABOUT POSSIBLE FUTURE MUTUALFUND ACQUISITIONS A BANK OFFICIAL SAID FIRST UNION WOULD CONTINUE TO LOOK AT NEW OPPORTUNITIES THOUGH NO DEALS WERE IMMINENT IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE FIRST UNION SHARES FELL 25 CENTS OR 06 TO CLOSE AT 4125 A SHARE ROBERT MCGOUGH CONTRIBUTED TO THIS ARTICLE 9310190119 931019 A SHORT HISTORY OF SOMALIA COMPILED BY MARK YOST OF THE JOURNAL'S EDITORIAL PAGE STAFF OCT 21 1969 THE SOVIETTRAINED SOMALI ARMY LED BY MOHAMMED SIAD BARRE SEIZES POWER SETTING UP A MARXIST STATE SIAD BARRE IS SUPPORTED BY THE NEW ARMY CHIEF OF STAFF MOHAMMED FARAH AIDID FORMERLY CHIEF OF POLICE IN MOGADISHU ONE OF THE SOMALI SOLDIERS WHO GOES HOME AFTER THE STINGING DEFEAT IS MOHAMMED FARAH AIDID AFTER SERVING AS CHIEF OF POLICE IN MOGADISHU AND IN VARIOUS OTHER GOVERNMENT AND MILITARY POSTS AIDID WAS NAMED THE ARMY'S CHIEF OF STAFF JUST BEFORE SIAD BARRE'S COUP EVEN THOUGH AIDID HELPED BRING THE DICTATOR TO POWER SIAD BARRE WAS WARY OF THE SUPPORT OF HIS MILITARY AND AIDID SERVED SIX YEARS IN ONE OF SOMALIA'S NOTORIOUS UNDERGROUND PRISONS AFTER BEING RELEASED HE WAS REINSTATED AS A COLONEL AND FOUGHT IN THE 197778 BORDER WARS WITH ETHIOPIA JUNEJULY 1992 RELIEF WORKERS COMING OUT OF SOMALIA BRING VIDEOTAPES OF THE STARVATION JULY 19 1992 THE NEW YORK TIMES RUNS A LENGTHY FRONTPAGE FEATURE ON STARVATION IN SOMALIA AUGUSTNOVEMBER 1992 NETWORK NEWS CREWS VISIT THE SOMALI COUNTRYSIDE BROADCASTING PICTURES OF STARVING CHILDREN COVERED WITH FLIES RELIEF WORKERS COMPLAIN THAT FAMINERELIEF SUPPLIES FROM THE UN AND OTHER ORGANIZATIONS CAN'T GET THROUGH TO STARVING SOMALIS THE UN REPORTS THAT 300000 HAVE DIED FROM STARVATION AND AN ADDITIONAL TWO MILLION ARE THREATENED IF SOMETHING IS NOT DONE SUPPLIES ARE SO LOW THAT RELIEF WORKERS NOT ONLY CAN'T GET THE FOOD THROUGH CLAN ROADBLOCKS AND OUT INTO THE COUNTRYSIDE BUT FOOD WAREHOUSES IN MOGADISHU ARE BEING RAIDED BY THE CLANS AS THE SHIPMENTS ARRIVE NOV 25 1992 US OFFERS TROOPS FOR MULTINATIONAL FORCE DEC 3 1992 UN APPROVES USLED MILITARY FORCE TO GUARANTEE DISTRIBUTION OF FOOD DEC 9 1992 US NAVY SEALS ARE THE FIRST TO LAND ON SOMALIA'S BEACHES AMID A FLOOD OF TELEVISION LIGHTS AND CAMERAS US COMMITS 28000 TROOPS TO THE REGION FOR OPERATION RESTORE HOPE UNDER A US COMMAND HEADED BY MARINE LT GEN ROBERT JOHNSTON US FORCES SECURE VITAL FACILITIES OPERATING UNDER FIRE FIRST RULES OF ENGAGEMENT ALLOWING THEM TO FIRE ON ANYONE THEY CONSIDER A THREAT THEY SHOVE ASIDE A SMALL UN FORCE THAT OPERATED UNDER MORE RESTRICTIVE RULES OF ENGAGEMENT ROBERT OAKELY PRESIDENT BUSH'S SPECIAL REPRESENTATIVE TO SOMALIA MOVES INTO CONACO HOUSE ACROSS THE STREET FROM AIDID'S PERSONAL RESIDENCE IN SOUTHERN MOGADISHU HE IS ESCORTED THERE BY AIDID AND PROTECTED BY FORCES LOYAL TO AIDID AIDID HAS FLIERS PRINTED THAT READ USA IS FRIEND/UN IS INVADER DEC 14 1992 UN SECRETARY GENERAL BOUTROS BOUTROSGHALI SAYS AT A NEWS CONFERENCE THAT DISARMING OF THE WARLORDS IS A PREREQUISITE TO STABILITY IN THE AREA GEN JOSEPH P HOAR CHIEF OF THE US CENTRAL COMMAND SAYS THAT THIS IS A POLITICAL ISSUE ONE THAT NEEDS TO BE SETTLED FIRST AND FOREMOST BY THE SOMALIS HE SAYS THAT IN ONE INSTANCE MARINES REFUSED TO ACCEPT WEAPONS OFFERED BY CLANSMEN IN RETURN FOR US PROTECTION BECAUSE THEY DID NOT HAVE THE RESOURCES TO MAKE SUCH A GUARANTEE JANUARY 1993 A LOOSE CEASEFIRE ACCORD IS REACHED WITH SOME OF SOMALIA'S 14 CLANS THE WARRING FACTIONS AGREE TO MEET IN MARCH IN ADDIS ABABA FOR TALKS TO END THE COUNTRY'S CIVIL WAR JAN 2 1993 UN CHILDREN'S DEFENSE FUND FIELDWORKER SEAN DEVEREAUX 28 OF BRITAIN IS EXECUTED BY A LONE GUNMAN IN KISMAYU DEVEREAUX HAD SPOKEN OUT PUBLICLY AGAINST A DECEMBER MASSACRE OF POLITICAL OPPONENTS CARRIED OUT IN KISMAYU BY CLAN FACTION LEADER OMAR JESS AN ALLY OF AIDID JAN 19 1993 MARINE PFC DOMINGO ARROYO BECOMES THE FIRST AMERICAN CASUALTY IN SOMALIA FEBRUARY 1993 MR OAKLEY PROMISES AIDID THAT HE WON'T ALLOW GEN HERSI MORGAN SIAD BARRE'S SONINLAW TO RETURN TO KISMAYU BUT LT GEN JOHNSTON IS SAID TO HAVE MADE MR OAKLEY RETRACT THE PROMISE SAYING AT THE TIME THAT AIDID WAS THE PRINCIPAL OBSTACLE AND BIGGEST THREAT TO SECURITY IN THE REGION MAY 4 1993 LT GEN JOHNSTON PASSES OFF THE COMMAND OF THE RELIEF OPERATION IN SOMALIA TO THE UN OF THE ROUGHLY 28000 US TROOPS ORIGINALLY COMMITTED ABOUT 5000 REMAIN THE OPERATION IS NOW COMMANDED BY GEN CEVIK BIR OF TURKEY MAY 5 1993 PRESIDENT CLINTON WELCOMES ROUGHLY 100 VETERANS OF OPERATION RESTORE HOPE IN A CEREMONY ON THE SOUTH LAWN OF THE WHITE HOUSE GEN JOHNSTON HAS JUST REPORTED TO ME MISSION ACCOMPLISHED THE PRESIDENT SAYS IN AWARDING THE DEFENSE DISTINGUISHED SERVICE MEDAL TODAY FOOD IS FLOWING CROPS ARE GROWING SCHOOLS AND HOSPITALS ARE REOPENING ALTHOUGH THERE IS STILL MUCH TO BE DONE IF ENDURING PEACE IS TO PREVAIL ONE CAN NOW ENVISION A DAY WHEN SOMALIA WILL BE RECONSTRUCTED AS A FUNCTIONING CIVIL SOCIETY BUT THE PRESIDENT ADDS YOU HAVE SHOWN THAT THE WORK OF THE JUST CAN PREVAIL OVER THE ARMS OF THE WARLORDS JUNE 5 1993 AIDID'S FORCES AMBUSH PAKISTANI PEACEKEEPERS KILLING 24 AND WOUNDING 54 MANY OF THE PAKISTANIS WERE BUTCHERED AND MUTILATED WITH BODIES DISMEMBERED AND EYES GOUGED OUT SHORTLY THEREAFTER THE UN PUTS A BOUNTY ON AIDID JUNE 12 1993 DURING A RAID ON ONE OF AIDID'S ALLEGED HIDEOUTS ABOUT 50 SOMALIS MANY CIVILIANS ARE KILLED BY UN FORCES RESULTING IN AN ANGRY MOB KILLING FOUR JOURNALISTS WHO SHOW UP AT THE SITE AFTER THE BATTLE JULYAUGUST 1993 DESPITE REPEATED REQUESTS FROM JONATHAN HOWE A RETIRED US NAVY ADMIRAL WHO IS THE SPECIAL UN ENVOY TO SOMALIA DEFENSE SECRETARY LES ASPIN AND OTHER ADMINISTRATION OFFICIALS ARE RELUCTANT TO SEND MORE US TROOPS OR ARMOR TO SOMALIA AUG 8 1993 FOUR AMERICAN SOLDIERS ARE KILLED WHEN THEIR ALLTERRAIN VEHICLE DETONATES A MINE PRESIDENT CLINTON SENDS ELEMENTS OF THE ARMY RANGERS WHO SPECIALIZE IN URBAN WARFARE TO HUNT DOWN AND CAPTURE AIDID SEPT 25 1993 THREE AMERICAN SOLDIERS ARE KILLED WHEN THEIR BLACKHAWK HELICOPTER IS SHOT DOWN BY A ROCKETPROPELLED GRENADE SEPT 28 1993 PRESIDENT CLINTON WANTS A FIXED DATE FOR THE WITHDRAWAL OF US FORCES FROM SOMALIA OCT 3 1993 12 AMERICANS ARE KILLED 78 WOUNDED AND AN UNKNOWN NUMBER MISSING AFTER RANGER UNITS ARE AMBUSHED AND PINNED DOWN PROTECTING THE CREW OF A DOWNED BLACKHAWK HELICOPTER UN UNITS ARE SLOW TO RESPOND AND ACCESS IS BLOCKED BY AIDID'S FORCES GRAPHIC PICTURES OF THE CORPSE OF A US SOLDIER BEING DRAGGED THROUGH THE STREETS AND SPAT UPON BY SOMALI CITIZENS BRING CALLS FOR WITHDRAWAL OF US FORCES OCT 8 1993 PRESIDENT CLINTON ORDERS UP TO 15000 ADDED US TROOPS TO SOMALIA FOLLOWING ATTACKS BY AIDID'S FORCES1700 SOLDIERS ALONG WITH 3600 MARINES ON SHIPS OFFSHORE AND A 10000MAN CARRIER FORCE SHORTLY AFTER PRESIDENT CLINTON ANNOUNCES MORE US FORCES FOR SOMALIA AIDID OFFERS A CEASEFIRE AND THE ADMINISTRATION HINTS THAT IF HOSTILITIES CEASE THE UN WARRANT FOR AIDID WILL NOT BE PROSECUTED POPULATION 56 MILLION INCLUDING 600000 INTERNAL REFUGEES 430000 ETHIOPIAN REFUGEES MINUS 300000 REFUGEES WHO FLED TO ETHIOPIA IN 1988 AREA 246155 SQUARE MILES ABOUT THE SIZE OF FRANCE PLUS BENELUX 9310190118 931019 GTE UNIT GETS CONTRACT MCLEAN VA GTE SPACENET CORP A UNIT OF GTE CORP SAID IT RECEIVED A MULTIYEAR CONTRACT FROM SAVINGS & LOAN DATA CORP FOR THE USE OF ITS SATELLITEBASED TELECOMMUNICATIONS NETWORK TERMS OF THE CONTRACT WEREN'T DISCLOSED BUT S&L DATA A CINCINNATI PROVIDER OF DATAPROCESSING SERVICES WILL USE GTE'S SKYSTAR PLUS NETWORK TO OFFER DATAPROCESSING SERVICES TO ABOUT 200 CUSTOMER FACILITIES GTE SPACENET SAID 9310190117 931019 WHO'S NEWS IBM PICKS WELSH FOR NEW POST ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP NAMED DENNIE WELSH TO THE NEW POSITION OF GENERAL MANAGER FOR SERVICES US A DIVISION OF THE COMPANY'S MARKETING AND SERVICES ORGANIZATION MR WELSH 50 YEARS OLD WAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF INTEGRATED SYSTEMS SOLUTIONS CORP AN INFORMATION TECHNOLOGY SERVICES SUBSIDIARY OF IBM HE IS SUCCEEDED IN THAT JOB BY SAM PALMISANO 42 WHO IS ALSO THE PRESIDENT OF THE UNIT MR PALMISANO WILL REPORT TO MR WELSH IBM STILL HASN'T NAMED A GENERAL MANAGER FOR THE MARKETING PORTION OF THE ORGANIZATION TO SUCCEED DAVID THOMAS MR THOMAS WAS NAMED GENERAL MANAGER OF THE MIDRANGE COMPUTER DIVISION OF IBM MR WELSH REPORTS TO ROBERT J LABANT SENIOR VICE PRESIDENT FOR MARKETING AND SERVICES NORTH AMERICA 9310190116 931019 UAW TURNS UP PRESSURE ON GM TO AGREE TO PACT DETROIT UNITED AUTO WORKERS UNION LEADERS YESTERDAY TURNED UP PRESSURE ON GENERAL MOTORS CORP TO AGREE TO A NEW LABOR AGREEMENT BY THURSDAY THE UAW TOLD OFFICIALS OF UNION LOCALS ACROSS THE COUNTRY TO CONVENE IN DETROIT THURSDAY FOR A BRIEFING ON THE CONTRACT TALKS SO FAR THE UAW HASN'T SET A FORMAL STRIKE DEADLINE BUT YESTERDAY'S MOVE AMOUNTED TO A DE FACTO DEADLINE IT'S UNDERSTOOD THAT UAW PRESIDENT OWEN BIEBER WANTS TO HAVE A DEAL IN HAND BEFORE HE BRIEFS LOCAL OFFICIALS IF HE DOESN'T UAW OFFICIALS INDICATED THE SESSION COULD SEE DEBATE OVER A HARDERLINE STRATEGY WE'RE ALL ANXIOUS TO SEE WHAT'S GOING ON SAID DENNIS KEYS THE UAW BARGAINING CHAIRMAN AT GM'S ASSEMBLY PLANT IN SHREVEPORT LA MEANWHILE TOP GM OFFICIALS SAID THEY WERE MAKING PROGRESS IN THE TALKS FOR THE THREEYEAR PACT BUT CALLED THE GOING SLOW AND DIFFICULT WE'VE STILL GOT A FEW ISSUES TO DEAL WITH GM PRESIDENT JOHN F SMITH JR SAID YESTERDAY GM EXECUTIVE VICE PRESIDENT WILLIAM HOGLUND ADDED THAT PROGRESS IS BEING MADE BUT EACH STEP IS SLOW AND DIFFICULT 9310190114 931019 WHO'S NEWS AMERICAN BARRICK TAPS A GROUP TO HANDLE NEXT PHASE OF GROWTH' TORONTO AMERICAN BARRICK RESOURCES CORP CREATED A CORPORATE DEVELOPMENT GROUP TO HANDLE THE COMPANY'S NEXT PHASE OF GROWTH IN SOUTH AMERICA AND ASIA THE TORONTO GOLD PRODUCER NAMED GREGORY WILKINS 37 YEARS OLD TO THE NEWLY CREATED POSITION OF EXECUTIVE DIRECTOR OFFICE OF THE CHAIRMAN BARRICK ALSO NAMED ITS VICE PRESIDENT OF FINANCE ROBERT WICKHAM 36 TO REPLACE MR WILKINS AS CHIEF FINANCIAL OFFICER MR WILKINS WILL WORK WITH ALAN HILL 50 WHO WAS NAMED EXECUTIVE VICE PRESIDENT CORPORATE DEVELOPMENT MR HILL WHO WAS PREVIOUSLY RESPONSIBLE FOR DEVELOPMENT OF THE COMPANY'S GOLDSTRIKE GOLD PROPERTY IN NEVADA WILL ASSESS POTENTIAL ACQUISITIONS AMERICAN BARRICK WHOSE GOLDSTRIKE MINE ACCOUNTED FOR MOST OF THE COMPANY'S 13 MILLION OUNCES OF GOLD PRODUCED IN 1992 HAS LONG SAID IT PLANS TO GROW OUTSIDE NORTH AMERICA IN AN INTERVIEW MR WILKINS SAID THE COMPANY IS IN DISCUSSIONS TO DO BUSINESS IN CHINA BARRICK WILL ALSO SCOUT THE PACIFIC RIM AND SOUTH AMERICA FOR GOLDMINING OPPORTUNITIES MR WILKINS SAID THE COMPANY ALREADY HAS A FOOTHOLD IN PERU WHERE IT RECENTLY ENTERED INTO TWO SMALL EXPLORATION JOINT VENTURES WITH LOCAL COMPANIES HE SAID 9310190113 931019 MARKETING & MEDIA TV NETWORKS' ARGUMENTS TAKEN UNDER ADVISEMENT LOS ANGELES A US DISTRICT COURT JUDGE IN LOS ANGELES TOOK UNDER ADVISEMENT ARGUMENTS BY THE THREE MAJOR BROADCAST NETWORKS AND THE US JUSTICE DEPARTMENT CALLING FOR A LIFTING OF CONSENT DECREES THAT NOW LIMIT THE NETWORKS' ABILITY TO OWN AND SYNDICATE THEIR OWN PROGRAMMING MANY HAD EXPECTED JUDGE MANUEL REAL TO RULE FROM THE BENCH ON THE LONGRUNNING ISSUE THE CONSENT DECREES PROHIBIT CBS INC CAPITAL CITIES/ABC INC AND GENERAL ELECTRIC CO'S NBC FROM OWNING A STAKE IN PROGRAMS PRODUCED BY OUTSIDERS AND FROM SYNDICATING BOTH RERUNS AND ORIGINAL SHOWS THE NETWORKS ARGUE THAT THE RULES ARE OUTDATED AT A TIME WHEN THEIR COMPETITORS IN CABLE AND THE TELEPHONE COMPANIES FACE FEW OF THE SAME RESTRICTIONS THE NETWORKS' ATTEMPTS TO HAVE THE RULES CHANGED HAVE BEEN OPPOSED BY HOLLYWOOD PRODUCTION STUDIOS IF THE CONSENT DECREES ARE LIFTED THE NETWORKS WILL IMMEDIATELY BE ABLE TO TAKE STAKES IN OUTSIDEPRODUCED SHOWS BUT WON'T BE ABLE TO ENTER THE SYNDICATION BUSINESS FOR TWO YEARS UNDER RECENTLY REVISED FEDERAL COMMUNICATIONS COMMISSION REGULATIONS 9310190112 931019 WHO'S NEWS FORSTMANN LITTLE RECRUITS PAUL STERN PLANS AN ACQUISITION FOR HIM TO RUN BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FORSTMANN LITTLE & CO HAS HIRED PAUL G STERN FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NORTHERN TELECOM LTD AND PLANS TO ACQUIRE A COMPANY THAT DR STERN WILL RUN IN HIRING DR STERN AN OLD HAND AT RUNNING SEVERAL TECHNOLOGYBASED COMPANIES FORSTMANN HOPES TO TAP HIS TECHNICAL EXPERTISE TO HELP MANAGE SOME OF ITS CURRENT COMPANIES AND IDENTIFY FUTURE ACQUISITIONS FOR DR STERN 54 YEARS OLD THIS STEP REPRESENTS THE CULMINATION OF A LONGHELD DESIRE TO RUN MY OWN COMPANY FORSTMANN SURPRISED THE TELECOMMUNICATIONS INDUSTRY RECENTLY BY HIRING AWAY DANIEL AKERSON PRESIDENT AND CHIEF OPERATING OFFICER OF MCI COMMUNICATIONS CORP MR AKERSON WAS A KEY STRATEGIST IN MCI'S SWIFT GROWTH AND NOW RUNS GENERAL INSTRUMENT CORP A FASTGROWING FORSTMANN COMPANY THAT IS EQUIPPING THE CABLETELEVISION AND TELEPHONE INDUSTRIES IN THEIR BATTLE TO PROVIDE MULTIMEDIA SERVICES IT'S SOMEWHAT COINCIDENTAL THAT FORSTMANN LITTLE HAS FOLLOWED ITS HIRING OF MR AKERSON WITH DR STERN SAID THEODORE J FORSTMANN SENIOR PARTNER HOWEVER HE ACKNOWLEDGED THAT DR STERN'S TECHNICAL BACKGROUND AND SENIOR MANAGEMENT EXPERTISE WOULD HELP FORSTMANN TARGET HIGHGROWTH COMPANIES FOR ACQUISITION INCLUDING THOSE INVOLVED IN MULTIMEDIA MR FORSTMANN DECLINED TO COMMENT ON THE SPECIFICS OF ANY ACQUISITION THE FIRM WAS PLANNING TO MAKE THREE YEARS AGO WHEN WE BOUGHT GENERAL INSTRUMENT THE CONVENTIONAL WISDOM WAS THAT IT WAS A DUMB THING TO DO MR FORSTMANN SAID BUT WE KNEW THEN THAT GENERAL INSTRUMENT HAD GREAT TECHNOLOGY AND WE SUSPECTED CABLE RATHER THAN TELEPHONE LINES WOULD PROVIDE THE PRIMARY ACCESS TO HOMES INDEED GENERAL INSTRUMENT WHOSE STOCK HAS MORE THAN DOUBLED SINCE JANUARY IS AGGRESSIVELY WORKING ON DIGITALCOMPRESSION TECHNOLOGY WHICH IT INVENTED AND HIGHDEFINITION TV BOTH AREAS OF TECHNOLOGY ARE KEY ELEMENTS IN THE RUSH TOWARD MULTIMEDIA SERVICES WHICH COMBINE COMMUNICATIONS COMPUTERS AND VIDEO TECHNOLOGIES THE COMPANY IS A BIG HORSE IN THE TELECOMMUNICATIONS RACE MR FORSTMANN SAID NORTHERN TELECOM HAD POSTED STRONG RESULTS FOR THE FOUR YEARS IT WAS UNDER DR STERN'S STEWARDSHIP UNTIL JANUARY BUT A DISASTROUS 1993 SECOND QUARTER WHICH THE COMPANY PARTLY BLAMED ON SOFTWARE PROBLEMS LED TO SEVERAL MEDIA REPORTS THAT DR STERN HAD BEEN OUSTED DR STERN HOWEVER SAID HE LEFT VOLUNTARILY BECAUSE HE COULDN'T HANDLE THREE JOBS THOSE OF CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT AT ONCE WHEN HE CHOSE EDWARD LUCENTE NORTHERN TELECOM'S EXECUTIVE VICE PRESIDENT TO TAKE OVER AS PRESIDENT THE BOARD INITIALLY AGREED ON HIS CHOICE BUT LATER CHANGED ITS MIND DR STERN SAID IT WAS POLITICS THE BOARD DIDN'T WANT TWO AMERICANS AT THE TOP OF A CANADIAN COMPANY HE ADDED MR LUCENTE QUIT NORTHERN TELECOM IN MARCH AND IS NOW THE SENIOR MARKETING AND SALES EXECUTIVE AT DIGITAL EQUIPMENT CORP DR STERN ALSO REJECTED NORTHERN TELECOM'S EXPLANATION THAT SOFTWARE PROBLEMS HURT THE COMPANY'S RESULTS IN RECENT MONTHS NORTHERN TELECOM ISN'T PERFORMING BECAUSE THEY KEEP SHUFFLING PEOPLE AROUND IN DIFFERENT JOBS IT'S DEFOCUSED HE SAID THE COMPANY EXPECTS TO REPORT A LOSS IN 1993 AS A SPECIAL LIMITED PARTNER AT FORSTMANN DR STERN APPEARS EAGER TO PUT THE LAST FEW MONTHS OF HIS TENURE AT NORTHERN TELECOM BEHIND HIM IN HIS NEW POSITION HE WILL HELP MANAGE CERTAIN FORSTMANN PORTFOLIO COMPANIES AS WELL AS SOME FUTURE INVESTMENTS FOR WHICH FORSTMANN HAS OVER 2 BILLION IN READY CAPITAL DR STERN ALSO WAS NAMED A DIRECTOR AT GULFSTREAM AEROSPACE CORP A FORSTMANN COMPANY IN ADDITION TO NORTHERN TELECOM DR STERN HAS HELD SENIOR EXECUTIVE POSITIONS AT UNISYS CORP BURROUGHS CORP ROCKWELL INTERNATIONAL CORP AND INTERNATIONAL BUSINESS MACHINES CORP FORSTMANN LITTLE IS A PRIVATE INVESTMENT FIRM WHICH OWNS OR CONTROLS SEVEN OPERATING BUSINESSES WITH TOTAL REVENUE OF ABOUT 45 BILLION 9310190110 931019 MONDAY'S MARKETS INDUSTRIALS RISE DESPITE BOND DROP MIXED DAY FOR STOCKS AS S&P 500 NASDAQ DECLINE DOLLAR GAINS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE CLIMBED DESPITE A RETREAT IN BOND PRICES THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE GAINED 1258 POINTS TO 364231 STANDARD & POOR'S 500STOCK INDEX SLID 105 TO 46845 AND THE NASDAQ COMPOSITE INDEX SANK 451 TO 78291 THE INDUSTRIAL AVERAGE GOT A BOOST FROM SURGES IN SEVERAL ECONOMICALLY SENSITIVE STOCKS ANALYSTS SAID INVESTORS TOOK PROFITS IN SOME RECENTLY HIGHFLYING NASDAQ STOCKS AND PILED INTO STOCKS SUCH AS ALLIEDSIGNAL MINNESOTA MINING & MANUFACTURING AND ALCOA IN THE BELIEF THAT THE ECONOMY MAY START TO SHOW IMPROVEMENT THE GAINS IN THE CYCLICAL STOCKS HELPED OFFSET PRESSURES FROM A SLUMPING BOND MARKET AFTER SOARING LAST WEEK ON POSITIVE INFLATION NEWS THE TREASURY'S BENCHMARK 30YEAR BOND SANK ON PROFITTAKING YESTERDAY WITH THE YIELD RISING TO 585 FROM 579 FRIDAY I SURE WOULDN'T MAKE THIS OUT TO BE A NEW BEARISH TREND FOR FIXEDINCOME INVESTMENTS SAID DANA JOHNSON HEAD OF CAPITALMARKETS RESEARCH AT FIRST CHICAGO WE ENDED LAST WEEK IN A NEARLY EUPHORIC MOOD AND NOW PEOPLE ARE SQUARING UP THEIR POSITIONS A LITTLE HERE SOME ANALYSTS SAID BOND PRICES WERE HURT BY REPORTS THAT FINANCIER GEORGE SOROS HAD TURNED BEARISH ON BONDS AND TAKEN LARGE SHORT POSITIONS OR SELLING BORROWED BONDS IN HOPES OF REPLACING THEM LATER AT LOWER PRICES BUT MR JOHNSON DISCOUNTED THE IMPACT OF THE RUMORS MR SOROS DOES CARRY SOME CREDIBILITY IN THE MARKET HE SAID BUT I'M RELUCTANT TO TIE THIS MOVE TO HIM OVERSEAS THE HONG KONG STOCK MARKET SURGED 31 TO ITS 13TH NEW HIGH IN 14 DAYS ON RECORD TRADING VOLUME GERMAN STOCK PRICES GAINED NEARLY 1 TO A RECORD AND BRITISH SHARES ROSE 05 TO A NEW HIGH WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 036 TO 11356 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3294 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1048 ISSUES FELL AND 1021 ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST 7/8 POINT OR 875 FOR EACH 1000 FACE AMOUNT TO YIELD 585 THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16390 MARKS AND 10740 YEN COMPARED WITH 16185 MARKS AND 10715 YEN FRIDAY 9310190108 931019 MARKETING & MEDIA VIACOM PULLS OUT OF PROJECT PLANNED BY RIVAL NETWORK PARAMOUNT BIDDER CANCELS PROGRAMS MINUTES BEFORE COMPETITOR AIRS TV TEST BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC HAS MOVED OUT OF THE BOARDROOM AND INTO THE LIVING ROOM FOR THE FIRST TIME FIFTEEN MINUTES BEFORE THE 11 AM LAUNCH OF DISCOVERY COMMUNICATIONS INC'S YOUR CHOICE TV YESTERDAY VIACOM INC PULLED ALL ITS PROGRAMMING OFF THE TEST OF THE NEW INTERACTIVE TELEVISION SERVICE WHICH AMONG OTHER THINGS LETS CABLE SUBSCRIBERS ORDER POPULAR PROGRAMS THEY MISSED WHEN AIRED DURING THEIR REGULAR TIMES VIACOM IS BATTLING QVC NETWORK INC FOR CONTROL OF PARAMOUNT AS IT HAPPENS DISCOVERY IS PARTLY OWNED BY THREE OF QVC'S BACKERS IN ITS PARAMOUNT BID TELECOMMUNICATIONS INC COX ENTERPRISES INC AND ADVANCE PUBLICATIONS INC'S NEWHOUSE BROADCASTING AND THE WEST PALM BEACH FLA CABLE SYSTEM ON WHICH YOUR CHOICE LAUNCHED ITS SERVICE YESTERDAY IS OWNED BY THE FOURTH QVC BACKER COMCAST CORP AMONG THE VIACOM PRODUCT YOUR CHOICE HAD PLANNED TO OFFER VIEWERS WAS A MOVIE FROM SHOWTIME NETWORKS AND PROGRAMS FROM MTV NETWORKS VIACOM OFFICIALS SAID THEIR DECISION TO PULL THE PROGRAMS HAD NOTHING TO DO WITH THE FACT THAT ALL ITS RIVALS IN THE BATTLE FOR PARAMOUNT ARE INVOLVED IN YOUR CHOICE'S LAUNCH ONE COMPANY EXECUTIVE ACKNOWLEDGED THAT AT THE MOMENT WE'RE NOT PARTICIPATING IN THE TEST BUT ADDED WE DON'T THINK WE EVER REALLY AGREED TO DO IT VIACOM WHICH HAS AGREED TO BUY PARAMOUNT IN AN OFFER VALUED AT ABOUT 79 BILLION FACES A RIVAL 97 BILLION BID FROM QVC BEFORE THE ANNOUNCEMENT SUNDAY THAT COX AND ADVANCE HAD JOINED THE QVC BID VIACOM FILED AN ANTITRUST SUIT AGAINST TELECOMMUNICATIONS INC AND OTHERS INVOLVED IN THE BID ALLEGING A CONSPIRACY TO MONOPOLIZE THE CABLE INDUSTRY 9310190107 931019 NATIONSBANK CHASE FIRST INTERSTATE AND PNC POST BETTER 3RDPERIOD RESULTS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL FOUR BIG BANKS REPORTED GENERALLY IMPROVED THIRDQUARTER RESULTS IN PART BECAUSE CONSUMER LENDING PICKED UP BUT BANK STOCKS TUMBLED FURTHER AMID WORRIES ABOUT FUTURE PROFITS NATIONSBANK CORP REPORTED A 26 DECLINE IN NET INCOME ALTHOUGH THE DROP WAS MAINLY DUE TO ONETIME CHARGES CHASE MANHATTAN CORP SAID EARNINGS ROSE NEARLY 52 PNC BANK CORP'S PROFIT CLIMBED 64 WHILE FIRST INTERSTATE BANCORP'S NET INCOME DOUBLED EARNINGS WERE HELPED BY INCREASES IN LENDING A GOOD SIGN FOR AN INDUSTRY STARVED FOR REVENUE GROWTH BANKS ALSO CONTINUED TO REDUCE THE PROVISIONS FOR LOAN LOSSES ALTHOUGH BIG BANKS STILL HAD TO SET ASIDE SIZABLE LEVELS OF RESERVES PROFIT MARGINS BETWEEN BORROWING AND LENDING ARE NARROWING AT MANY BANKS BUT REMAIN WIDE BY HISTORICAL STANDARDS STILL SHARES OF THESE BANKS AND MOST OTHERS WERE HIT WITH A HEAVY BOUT OF SELLING AS INVESTORS TOOK PROFITS FROM A RECENT RALLY AND SOLD STOCK ON CONCERNS THAT A POSSIBLE CUT IN THE PRIME RATE WOULD HURT PROFIT MARGINS YESTERDAY JP MORGAN & CO LOWERED ITS PRIME RATE TO 55 FROM 6 PRESSURING OTHER BANKS TO FOLLOW THE PRIME IS THE BASE RATE CHARGED ON A WIDE RANGE OF LOANS TO MEDIUMSIZE AND SMALL BUSINESSES AS WELL AS TO INDIVIDUALS THIS IS THE THIRD CONSECUTIVE QUARTER IN WHICH BANK STOCKS ROSE BEFORE EARNINGS REPORTS AND WERE HAMMERED DURING THEIR RELEASE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY NATIONSBANK SHARES FELL 1875 OR 37 TO 48875 WHILE SHARES OF CHASE MANHATTAN TUMBLED 175 OR 49 TO 34125 PNC'S SHARES DROPPED 50 CENTS TO 29125 WHILE FIRST INTERSTATE'S STOCK SLUMPED 325 OR 51 TO 6075 IT HAS NOTHING TO DO WITH THE FUNDAMENTALS SAID LAWRENCE COHN BANKING ANALYST AT PAINEWEBBER EARNINGS ARE CLEARLY BETTER THAN EXPECTED AND GREETED BY BIG SELLOFFS IN THE STOCKS MR COHN SAID THE PRIME CUT ADDED FUEL TO A SELLOFF THAT ALREADY STARTED TO PICK UP A HEAD OF STEAM THE CHARLOTTE NC BANK HOLDING COMPANY WHICH REPORTED STRONG OPERATING EARNINGS BEFORE ADJUSTING FOR SEVERAL ONETIME CHARGES AND A HIGHER TAX RATE SUBSTANTIALLY INCREASED BOTH ITS NET INTEREST MARGIN A MEASUREMENT OF THE PROFITS BETWEEN BORROWING AND LENDING AND ITS LOAN PORTFOLIO DURING THE THIRD QUARTER EXCLUDING THE IMPACT OF ITS ACQUISITION OF CHICAGO RESEARCH & TRADING GROUP WHOSE EARNINGS ARE TREATED AS NONINTEREST INCOME NATIONSBANK'S NET INTEREST MARGIN GREW 005 OF A PERCENTAGE POINT TO 422 POINTS BETWEEN JUNE 30 AND SEPT 30 THAT FIGURE REPRESENTS AN INCREASE OF 006 PERCENTAGE POINT OVER THE THIRD QUARTER OF 1992 MEANWHILE LOAN BALANCES DURING THE THREEMONTH PERIOD EXPANDED BY 25 BILLION A 13 ANNUALIZED GROWTH RATE AVERAGE LOANS AND LEASES FOR THE QUARTER ROSE 101 BILLION TO 778 BILLION COMPARED WITH THE YEAREARLIER PERIOD THE COMPANY SAW LOANS GROW EQUALLY IN ITS COMMERCIAL AND CONSUMER OPERATIONS BOTH RECORDING INCREASES OF ABOUT 4 ACCORDING TO A NATIONSBANK SPOKESMAN LOAN QUALITY AT NATIONSBANK IMPROVED AS WELL WITH THE LOANLOSS PROVISION SHRINKING TO 100 MILLION COMPARED WITH 110 MILLION IN THE SECOND QUARTER AND 150 MILLION IN THE THIRD QUARTER OF 1992 THE NATION'S SIXTHLARGEST BANKING COMPANY REPORTED EARNINGS AHEAD OF WALL STREET'S EXPECTATIONS OF 98 CENTS A SHARE BUT ANALYSTS SAY NONRECURRING ITEMS ACCOUNTED FOR THE BULK OF THAT EARNINGS WERE FUELED BY A SLIGHT PICKUP IN LOANS AND THEREFORE INTEREST INCOME ALSO HELPING WAS STRONG NONINTEREST REVENUE SUCH AS TRADING SECURITIES AND CURRENCIES AND HIGHER FEES AND COMMISSIONS NET INTEREST REVENUE ROSE 3 TO 926 MILLION HELPED BY A 4 BILLION INCREASE IN AVERAGE EARNING ASSETS ALTHOUGH THE COMPANY'S NET INTEREST MARGIN FELL SLIGHTLY TO 399 PERCENTAGE POINTS FROM 41 POINTS IN THE SECOND QUARTER OF 1993 LOANS GREW BOTH DOMESTICALLY AND INTERNATIONALLY TOTAL CONSUMER BANKING FEES INCREASED 7 EXCLUDING CHARGES ASSOCIATED WITH A 42 MILLION WRITEDOWN OF THE COMPANY'S MORTGAGE SERVICING BUSINESS PROBLEM LOANS AND THE PROVISION FOR LOAN LOSSES FELL IN THE QUARTER THE PROVISION FELL TO 215 MILLION IN THE QUARTER FROM 225 MILLION IN THE SECOND QUARTER AND 320 MILLION A YEAR EARLIER IT WAS A PRETTY GOOD QUARTER SAID MR COHN EARNINGS EXCEEDED CONSENSUS FORECASTS OF ABOUT 72 CENTS A SHARE THE BANK CITED HIGHER COMMERCIAL LOAN VOLUMES REVENUE GROWTH AND A STABLE NET INTEREST MARGIN COMPARED WITH THE SECOND QUARTER THE NET INTEREST MARGIN IN THE THIRD QUARTER WAS 393 PERCENTAGE POINTS IN THE SECOND QUARTER IT WAS 396 PERCENTAGE POINTS IN THE YEAREARLIER QUARTER IT WAS 406 POINTS RETURN ON ASSETS FOR THE QUARTER WAS 172 AND RETURN ON EQUITY WAS 2159 NONPERFORMING ASSETS DECLINED BY 54 MILLION IN THE QUARTER TO 621 MILLION AS OF SEPT 30 THE QUARTERLY RESULTS REFLECTED THE SEPT 17 COMPLETION OF PNC'S ACQUISITION OF MASSACHUSETTS CO FOUR ACQUISITIONS ARE PENDING SEARS MORTGAGE GROUP GATEWAY FED CORP CINCINNATI UNITED FEDERAL BANCORP INC STATE COLLEGE PA AND FIRST EASTERN CORP WILKESBARRE PA THE FOUR HAVE COMBINED ASSETS OF 115 BILLION PNC CURRENTLY HAS 523 BILLION IN ASSETS INCLUDING MASSACHUSETTS CO FIRST INTERSTATE BANCORP DOUBLED THIRDQUARTER NET INCOME WITH ACROSSTHEBOARD IMPROVEMENTS THAT EXCEEDED ANALYSTS' EXPECTATIONS ANALYSTS HAD BEEN FORECASTING PERSHARE EARNINGS OF 160 FIRST INTERSTATE REPORTED A LOWER NONPERFORMING ASSETS RATIO SOLID LOAN GROWTH LOWER CREDITLOSS PROVISIONS AND COSTCONTAINMENT SUCCESS IT WAS A GOOD QUARTER SAID RONALD I MANDLE AN ANALYST WITH SANFORD C BERNSTEIN HARD TO FIND ANY BONES TO PICK THE LOS ANGELES BANK SAID NONPERFORMING ASSETS DROPPED 59 TO 449 MILLION FROM 111 BILLION A YEAR EARLIER NET INTEREST INCOME GREW TO 5281 MILLION FROM 4974 MILLION UP 6 RETURN ON ASSETS ALMOST DOUBLED TO 121 FROM 061 GABRIELLA STERN EMORY THOMAS JR AND MICHAEL J IBARRA CONTRIBUTED TO THIS ARTICLE 9310190106 931019 STARSIGHT TELECAST FREMONT CALIF STARSIGHT TELECAST INC HAS FILED A PATENTINFRINGEMENT LAWSUIT AGAINST GEMSTAR DEVELOPMENT CORP OVER ITS DEVICE THAT MAKES IT EASIER FOR PEOPLE TO RECORD MOVIES FROM TELEVISION STARSIGHT WHOSE RIVAL PRODUCT IS NOT YET ON THE MARKET FILED THE SUIT FOR UNSPECIFIED DAMAGES IN US DISTRICT COURT IN SAN JOSE GEMSTAR WHOSE PRODUCT IS CALLED VCR PLUS SAID IT HAD NOT YET SEEN THE SUIT AND HAD NO COMMENT GEMSTAR IS A CLOSELY HELD PASADENA CALIF COMPANY 9310190105 931019 WELLPOINT HEALTH TO BUY UNICARE FOR 154 MILLION BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES MANAGED CARE PROVIDER WELLPOINT HEALTH NETWORKS INC AGREED TO ACQUIRE UNICARE FINANCIAL CORP A CALIFORNIA WORKERS' COMPENSATION INSURANCE COMPANY FOR ABOUT 154 MILLION OR 29 A SHARE THE ANNOUNCEMENT PUSHED UNICARE SHARES UP ALMOST 40 OR 7875 TO 27625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WELLPOINT ALSO TRADED ON THE BIG BOARD SLIPPED 25 CENTS TO 2650 WELLPOINT SAID THE ACQUISITION WOULD OPEN THE DOOR TO PRODUCTS DESIGNED TO MEET THE NEED FOR A SEAMLESS PACKAGE OF EMPLOYEE HEALTHCARE AND WORKERS' COMPENSATION COVERAGE THIS 24HOUR COVERAGE APPROACH IS PART OF THE CLINTON ADMINISTRATION'S HEALTHCARE REFORM PROPOSAL THE COMPANY SAID AN IMPORTANT ELEMENT OF OUR CORPORATE STRATEGY IS TO BUILD AND DIFFERENTIATE OUR MANAGED CARE OFFERINGS WITH SPECIAL PRODUCTS SAID LEONARD D SCHAEFFER WELLPOINT CHAIRMAN AND CHIEF EXECUTIVE OFFICER THERE ARE SIGNIFICANT OPPORTUNITIES IN WORKERS' COMPENSATION WHICH WE SEE MOVING TOWARD MANAGED CARE HE SAID THE RISE IN MEDICAL CARE COSTS HAS BEEN PUSHING THE HEALTHCARE AND INSURANCE INDUSTRIES TOGETHER ANALYSTS SAID INSURANCE COMPANIES NEED MEDICALCOST CONTROLS WHILE HEALTHCARE COMPANIES NEED PATIENTS WORKERS' COMPENSATION COSTS TRADITIONALLY HAVEN'T BEEN MONITORED AS STRICTLY AS OTHER HEALTHCARE COSTS THE ANALYSTS SAID THE EXACT SAME INJURY WOULD COST A LOT MORE TO TREAT IN A WORKERS' COMPENSATION CLAIM SAID G ALAN ZIMMERMANN A PRUDENTIAL SECURITIES INC ANALYST WHY SHOULD THERE BE TWO DIFFERENT SYSTEMS IF YOU ARE HURT AT HOME OR ON THE FACTORY FLOOR THE PROPOSED ACQUISITION MOVES THE INTEGRATION OF HEALTH CARE AND INSURANCE A STEP FURTHER THE ANALYST SAID UNICARE'S MAIN OPERATING SUBSIDIARY UNICARE INSURANCE CO UNDERWRITES WORKERS' COMPENSATION INSURANCE IN CALIFORNIA AND 32 OTHER STATES UNDER THE PROPOSED ACQUISITION UNICARE WOULD BECOME A WELLPOINT SUBSIDIARY AND WOULD CONTINUE TO OPERATE UNDER CURRENT MANAGEMENT FROM ITS IRVINE CALIF HEADQUARTERS UNICARE INSURANCE WAS FOUNDED IN 1978 BY RALPH W LEATHERBY THE FATHER OF CURRENT CHAIRMAN AND CHIEF EXECUTIVE RUSSELL E LEATHERBY THE ELDER MR LEATHERBY IS TRUSTEE OF A FAMILY TRUST THAT HOLDS 14 MILLION SHARES OF THE PARENT COMPANY OR A 275 STAKE HIS SON OWNS 78000 SHARES INCLUDING OPTIONS OR A 16 STAKE WELLPOINT IS A UNIT OF BLUE CROSS OF CALIFORNIA A NONPROFIT ORGANIZATION THE TWO COMPANIES BASED IN THE WOODLAND HILLS SUBURB OF LOS ANGELES SAID THEY EXPECT THE TRANSACTION TO BE COMPLETED LATE THIS YEAR OR EARLY IN 1994 THE TRANSACTION IS SUBJECT TO VARIOUS APPROVALS INCLUDING A VOTE BY UNICARE SHAREHOLDERS 9310190104 931019 LAW LEGAL BEAT DENNY JURY GIVES PARTIAL VERDICT DELIBERATIONS TO CONTINUE TODAY BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES THE EMBATTLED RACIALLY MIXED JURY IN THE REGINALD DENNY BEATING TRIAL RETURNED A STRING OF NOTGUILTY VERDICTS AGAINST TWO DEFENDANTS BUT CONVICTED THEM ON SIX LESSER CHARGES STATE COURT JUDGE JOHN W OUDERKIRK ORDERED THE PANEL TO TRY TO REACH VERDICTS ON THREE OUTSTANDING COUNTS AND ONE SENTENCEENHANCING ALLEGATION DESPITE INDICATIONS FROM HALF THE JURORS THAT THE PANEL WAS HOPELESSLY DEADLOCKED ON THOSE ISSUES AMONG THOSE COUNTS WAS A KEY CHARGE AGAINST DEFENDANT DAMIAN WILLIAMS OF ATTEMPTED MURDER LATE YESTERDAY THE JUDGE SENT THE JURY HOME AND ORDERED IT BACK TOMORROW IN VERDICTS ANNOUNCED HERE LATE YESTERDAY MORNING MR WILLIAMS WAS CONVICTED OF SIMPLE MAYHEM A FELONY CARRYING A POSSIBLE PRISON TERM OF EIGHT YEARS AND FOUR MISDEMEANOR COUNTS OF ASSAULT EACH ASSAULT CONVICTION CARRIES A MAXIMUM SIXMONTH TERM THE JURY FOUND HENRY KEITH WATSON GUILTY OF A SINGLE COUNT OF SIMPLE ASSAULT AND NOT GUILTY ON TWO COUNTS OF ROBBERY AND ON ONE COUNT OF ASSAULT WITH A DEADLY WEAPON HOURS LATER THE JURY RETURNED TO REPORT ANOTHER ACQUITTAL FOR MR WILLIAMS ON A ROBBERY CHARGE INVOLVING ANOTHER MOTORIST WHO WAS ATTACKED ON THE FIRST DAY OF THE LOS ANGELES RIOTS IN APRIL 1992 MOST OF THE OTHER VERDICTS WERE REACHED SATURDAY BUT THE JUDGE HELD THEM UNTIL YESTERDAY AFTER TWICE ORDERING DEADLOCKED JURORS BACK INTO DELIBERATIONS THE NOTGUILTY VERDICTS REFLECTED THE SUCCESS OF DEFENSE ATTORNEYS IN ESTABLISHING THAT MESSRS WILLIAMS AND WATSON HAD BEEN CAUGHT UP IN A WAVE OF VIOLENT ACTIVITY AT THE START OF THE RIOTS A PHALANX OF MEDIA AND ABOUT 150 PROTESTERS APPEARED FOR THE ORIGINAL COURT TIME EARLY YESTERDAY MORNING ONLY TO BE LET DOWN AS THE JURY WAS SENT BACK INTO DELIBERATIONS AT THE DOWNTOWN CRIMINAL COURTS BUILDING IN THE FIRST REPORT FROM THE JURY MR WILLIAMS WAS FOUND NOT GUILTY OF TWO COUNTS OF ASSAULT WITH A DEADLY WEAPON AND ONE COUNT OF ROBBERY HE FACES A POSSIBLE RETRIAL IF THE JURY REMAINS HUNG ON THE ATTEMPTED PREMEDITATED MURDER CHARGE AND ON A SPECIAL ALLEGATION ATTACHED TO THE SIMPLE MAYHEM CONVICTION THE CASE WHICH CAPTURED NATIONAL ATTENTION AS A SYMBOLIC TRIAL FOR AFFIXING BLAME FOR THE LOS ANGELES RIOTS AROSE OUT OF THE STATECOURT ACQUITTALS OF FOUR POLICEMEN WHO HAD BEEN CHARGED WITH BEATING BLACK MOTORIST RODNEY KING AFTER A CAR CHASE HOURS AFTER THAT VERDICT WAS ANNOUNCED A GROUP OF YOUNG BLACK MEN AT A STREET CORNER IN SOUTH CENTRAL LOS ANGELES BEGAN ROBBING AND BEATING PEOPLE INCLUDING MR DENNY A WHITE TRUCKER WHO WAS PULLED FROM THE CAB OF A LARGE RIG A LOCAL NEWS STATION BROADCAST LIVE PICTURES OF THE VIOLENCE BEAMING INTO LIVING ROOMS ACROSS THE COUNTRY IMAGES OF A MAN PROSECUTORS SAY WAS MR WILLIAMS SMASHING A BRICK ACROSS MR DENNY'S HEAD THE IMAGE ALONG WITH THE VIDEOTAPE OF WHITE OFFICERS CLUBBING MR KING HAS BECOME EMBEDDED IN THE COLLECTIVE MEMORY OF THIS CITY IMAGES AND SYMBOLS PLAYED A PROMINENT ROLE IN THE DENNY TRIAL DESPITE THE BEST EFFORTS OF PROSECUTORS THE LINK BETWEEN THE KING AND DENNY CASES REMAINED UNBROKEN PARTICULARLY IN THE MINDS OF MANY BLACKS HERE DISTRICT ATTORNEY LARRY MORRISON SET THE TONE DURING OPENING ARGUMENTS BY DECLARING WE ARE NOT HERE TO TRY THE LOS ANGELES RIOTS BUT TO MANY THE PROSECUTION'S PREOCCUPATION WITH THE RIOTS SEEMED TO GO A LONG WAY TOWARD PROVING JUST THE OPPOSITE THE LEGAL ISSUES IN THE CASE WERE UNDRAMATIC AS A THRESHOLD MATTER THE PROSECUTION'S BURDEN WAS TO PROVE THE MEN SHOWN IN THE VIDEOTAPES WERE INDEED MESSRS WILLIAMS AND WATSON THE NEXT AND MOST CRITICAL ELEMENT OF PROOF WAS THAT MR WILLIAMS FORMED THE INTENT TO KILL MR DENNY AND FINALLY THAT MR WILLIAMS HAD ENOUGH TIME TO CHANGE HIS MIND BUT THREW THE BRICK ANYWAY IF THE JURORS REMAIN DEADLOCKED OR ACQUIT MR WILLIAMS ON THE ATTEMPTED MURDER CHARGE HIS LAWYER EDI MO FAAL WILL HAVE SUCCEEDED IN PROVING HIS CLIENT LACKED THE INTENT TO KILL MR DENNY THAT RESULT ALSO WOULD SUGGEST THAT JURORS DIDN'T BELIEVE A SPANISHSPEAKING GAS STATION ATTENDANT WHO SAID MR WILLIAMS TOLD HIM HE INTENDED TO HIT AND KILL PEOPLE THE ATTENDANT'S CREDIBILITY HAD BEEN QUESTIONED WHEN HE TESTIFIED THAT HE SAW MR DENNY HIT WITH THREE BRICKS EVEN THOUGH VIDEOTAPED PICTURES SHOWED ONLY ONE MR FAAL HOWEVER WAS UNSUCCESSFUL IN ARGUING OUTRIGHT MISTAKEN IDENTITY WHICH WOULD HAVE LED TO ACQUITTALS OF HIS CLIENT ON ALL CHARGES ON THE ATTEMPTED MURDER CHARGE MR WATSON'S FATE WAS SOMEWHAT DEPENDENT UPON MR WILLIAMS'S THE PROSECUTORS' LEGAL THEORY HELD THAT JURORS COULD CONVICT MR WATSON OF ATTEMPTED MURDER EVEN THOUGH HE DIDN'T THROW THE BRICK THEY SAY WAS INTENDED TO KILL MR DENNY IF JURORS BELIEVED HIS CONDUCT AIDED MR WILLIAMS IN THROWING THE BRICK EARL C BROADY MR WATSON'S LAWYER ADMITTED HIS CLIENT WAS SHOWN WITH HIS FOOT ON MR DENNY IN THE VIDEOTAPE A LEGAL MOVE SOME EXPERTS QUESTIONED AS A POSSIBLE TACTICAL ERROR HOWEVER THE VERDICTS RETURNED YESTERDAY VINDICATED THE STRATEGY MR BROADY HAD CLAIMED THAT HIS CLIENT WAS HOLDING MR DENNY DOWN IN AN ATTEMPT TO PREVENT OTHERS FROM INFLICTING FURTHER HARM IN ACQUITTING MR WILLIAMS OF AGGRAVATED MAYHEM A CHARGE THAT CARRIED A POTENTIAL LIFE SENTENCE THE PANEL SHOWED IT DIDN'T BELIEVE PROSECUTORS PROVED BEYOND A REASONABLE DOUBT THAT MR WILLIAMS HAD INTENDED TO CAUSE PERMANENT DISABILITY AND DISFIGUREMENT TO MR DENNY THE SIMPLEMAYHEM VERDICT DIDN'T REQUIRE INTENT THE SPECIAL CIRCUMSTANCES ON WHICH THE JURY WAS DEADLOCKED YESTERDAY INVOLVED USE OF A DEADLY WEAPON IN THE ACT OF MAYHEM WHICH COULD ADD ANOTHER YEAR TO MR WILLIAMS'S SENTENCE ON THAT COUNT MR WATSON WASN'T CHARGED WITH MAYHEM LESS PROMINENT THAN THE DENNY BEATING CHARGES IN THE CASE WERE THE ROBBERIES AND ASSAULTS ON SEVEN OTHER VICTIMS ALL OF WHOM SUFFERED INJURIES IN OR NEAR THE SAME INTERSECTION WHERE MR DENNY WAS BEATEN ALMOST TO DEATH THE CASES HAD BEEN CONSOLIDATED WITH THE CHARGES INVOLVING THE ASSAULTS BY MESSRS WILLIAMS AND WATSON ON MR DENNY LT JOHN DUNKIN A LOS ANGELES POLICE DEPARTMENT SPOKESMAN SAID THE DEPARTMENT'S INTELLIGENCE GATHERING BEFORE THE FIRST WILLIAMSWATSON VERDICTS INDICATED THAT WE'RE NOT GOING TO HAVE THE SAME TYPE OF VIOLENT REACTION WE'VE HAD IN THE PAST IN THIS CITY HE SAID THE DEPARTMENT HAD PUT ON HOLD PLANS TO PLACE POLICE ON 12HOUR SHIFTS AND TO MOBILIZE AS MANY AS 6500 OF THE CITY'S 7600 OFFICERS THE CASE'S AMBIGUOUS ENDING CAPS AN ODD FINAL WEEK OF DELIBERATIONS IN WHICH ONE JUROR WAS REMOVED FOR INCOMPETENCE ANOTHER SENT HOME FOR PERSONAL REASONS AND A THIRD MANAGED TO SURVIVE A DEFENSE PLEA TO REMOVE HER THE THIRD JUROR WHOSE ERRATIC BEHAVIOR AND APPARENT APATHY CONCERNING A RESULT WERE CITED BY THE DEFENSE NONETHELESS WAS RETAINED ON THE PANEL BY JUDGE OUDERKIRK HE REASONED THAT THE JUROR'S ACTIONS UNLIKE THOSE OF AN OLDER BLACK WOMAN DISMISSED FOR INCOMPETENCE LAST MONDAY COULD BE CORRECTED MANY IN THE BLACK COMMUNITY HAD SPECULATED THAT THE OLDER BLACK WOMAN WAS LIKELY A HOLDOUT JUROR INTENT ON FINDING THE DEFENDANTS NOT GUILTY ON ALL OR MOST COUNTS IN FACT THE TRANSCRIPTS OF AN INTERVIEW BETWEEN THE WOMAN AND THE JUDGE INDICATES SHE TOLD HIM I CAN'T STAND BACK THERE AND FIGHT WITH THEM BECAUSE IT'S TOO HARD ON ME REALLY IT IS AND I CAN'T IN GOOD CONSCIENCE SEE IT GO LIKE THIS I MEAN I REALLY CANNOT THEY'RE NOT GETTING A FAIR TRIAL THE DISMISSALS HAD LEFT JUDGE OUDERKIRK WHO HAD TAKEN THE UNUSUAL STEP OF EMPANELING SIX ALTERNATE JURORS RATHER THAN THE USUAL FOUR IN SUCH HIGHPROFILE CASES WITH ONLY ONE ALTERNATE THE FINAL JURY COMPRISED FOUR BLACKS FOUR HISPANICS TWO WHITES AND TWO ASIANS BRITAIN'S LAW COMMISSION WHICH ADVISES THE GOVERNMENT ON LEGAL REFORMS IS RECOMMENDING A SIGNIFICANT EXPANSION OF BRITISH COURTS' POWER TO ASSESS PUNITIVE DAMAGES IN CIVIL CASES SUCH DAMAGES WHICH ARE DESIGNED TO DETER MISCONDUCT BY REQUIRING WRONGDOERS TO PAY FAR MORE THAN THE AMOUNT REQUIRED TO MERELY COMPENSATE AN INJURED PARTY ARE NOW EXTREMELY LIMITED UNDER BRITISH COURT RULINGS PUNITIVE DAMAGE AWARDS ARE MUCH MORE READILY AVAILABLE IN THE US WHERE THEY HAVE FREQUENTLY BEEN CRITICIZED AS EXCESSIVE WE JUST FEEL THAT THE LAW HAS PAINTED JUDGES INTO A CORNER ON EXEMPLARY DAMAGES SAYS URSULA CHEER A LAWYER WHO HEADS THE BRITISH LAW COMMISSION'S DAMAGES PROJECT WE FEEL THERE'S A VALID CASE FOR EXEMPLARY DAMAGES IN SOME CIRCUMSTANCES CHARLES GOLDSMITH CONTRIBUTED TO THIS ARTICLE 9310190103 931019 BUSINESS WORLD ODE TO THE MONEY MASTERS BY TIM W FERGUSON WHEN BELL ATLANTIC MADE ITS MOVE WITH TELECOMMUNICATIONS INC THE MARKETS TOOK A DEEP BREATH AND BOUGHT THE RUNUP IN THE TELCO TRADE WAS A QUICK IF TEMPORARY VALIDATION OF THE PROMISE OF INTERACTIVE TV SHRUGGING OFF AS IT DID THE FACT THE BABY BELL HAD DRAMATICALLY DILUTED EARNINGS WITH ITS STOCK OFFER WE HAVE AN IDEA WHO THE MARKETS WERE PORTFOLIO MANAGERS BLOCK TRADES A ROUGH PROXY FOR INSTITUTIONAL CASH ACCOUNTED FOR 67 OF BELL ATLANTIC'S VOLUME ON THE DAY OF THE TCI ANNOUNCEMENT ACCORDING TO BIRINYI ASSOCIATES THIS COMPARES WITH 45 OF ALL EQUITIES VOLUME TYPICALLY ABOUT 33 OF BELL ATLANTIC'S SHARES ARE HELD BY INSTITUTIONS IN THE SUPPOSEDLY SEDATE 1990S THE FINANCIAL WATERS ARE ROILING SOMETIMES WITH THE STRENGTH OF THE MUTUALFUND MASSES BEHIND THEM SOMETIMES WITH ONLY THEIR OWN DARING AND THE STAKES OF A WEALTHY FEW THE MONEYMANAGING ELITE APPARENTLY BELIEVES HAPPY DAYS ARE LIKELY IN THE US ECONOMY AND IN SECTORS SUCH AS TELECOM ESPECIALLY GO FIGURE WHY BOND YIELDS THEN GET BEATEN DOWN THE GREAT FINANCIERS OF OUR DAY INCREASINGLY ARE TO BE FOUND NOT IN BANKS BUT RUNNING BILLIONS OF DOLLARS OUT OF THEIR OWN COMPUTERIZED CRANNIES FROM WALL STREET TO WALLA WALLA SOME ARE IN THE REGULATED FUNDS OTHERS IN THE MORE EXOTIC HEDGE UNIVERSE THEY COURT PUBLICITY OR HIDE AS EGO AND THE IRS DICTATE BUT GROW EVER MORE POWERFUL REGARDLESS THEY FILL THE CHANNELS OF INVESTMENT OR SPECULATION THAT SPAN THE WORLD A FLICKER OF FAME FOR EVEN THE MORE FACELESS AMONG THEM IS NOW LENT BY GLOSSY PUBLICATIONS AS WELL AS BY US IN THE SMUDGE SET PLUS HOURS OF TV BUSINESS COVERAGE BECKON MEDIA EVERYWHERE ARE INTERESTED IN WHO PREVAILS IN THE MARKETS AND HOW BUT ALL THIS CELEBRITY ISN'T THE SAME AS APPLAUSE MONEY MANAGEMENT IS MORE AWED THAN ADMIRED AFTER ALL IT'S APPLIED GREED AND GREED MAY BE THE ONLY SIN LEFT MOREOVER IN PURSUIT OF PROFIT THIS CROWD CREATES NOTHING UNLIKE THE SAINTLY INVENTOR WHO MIGHT GET RICH FROM HIS GENIUS OCCASIONALLY A KIND WORD HAS BEEN SAID JOHN TRAIN'S BOOK THE MONEY MASTERS PUBLISHED IN 1980 AT THE EPOCH OF CONTEMPORARY FINANCE WAS A SYMPATHETIC GLANCE AT NINE OF THE MORE VENERATED OF THESE SORTS SUCH AS MUTUALFUND MAVEN JOHN MARKS TEMPLETON PUT ME DOWN WITH MR TRAIN WHETHER THEY'RE GOING TO HEAVEN OR NOT THESE GUYS REPRESENT MERITOCRACY IN A WORLD THAT'S TOO SHORT ON IT THEY GET RESULTS OR THEY FALL A FEW TURN OUT TO BE SHARPIES AND THEY FALL TOO THE PORTFOLIO BOYS WERE BIG IN THE '60S CONGLOMERATE CRAZE THAT WENT BUST AND SOME PEOPLE SUCH AS MORGAN STANLEY WORLDWIDE STRATEGIST BARTON BIGGS THINK MANY ARE GOING FOR A RIDE AT THE MOMENT BUT EVEN AS MISTAKES ARE MADE THOSE WHO CORRECT FASTEST IN THE MONEY GAME WIN AUDITED RETURNS CAN'T LIE I WAS REMINDED OF THE COMPARATIVE VIRTUES OF RUNNING MONEY BY A COVER ARTICLE IN THE NEW REPUBLIC IT SKEWERED ANOTHER SORT OF FINANCIAL PLAYER A MERCHANT BANK CALLED THE CARLYLE GROUP IN THAT BUSINESS SUBJECTIVE FACTORS SUCH AS RELATIONSHIPS BLEND WITH THE COLD HARD NUMBERS THAT ARE THE ESSENCE OF ANY DEAL CARLYLE WAS A STORY LONG BEGGING TO BE DONE HERE IS AN OUTFIT SET UP TO USE THE INFLUENCE AND ACCESS OF FORMER GOVERNMENT OFFICIALS TO GET TO THE PUNCH BOWL FIRST ITS MOST NOTABLE ASSOCIATES ARE JIM BAKER FRANK CARLUCCI AND DICK DARMAN MICHAEL LEWIS THE SCOURGE OF FINANCE CAPITALISM WHO WROTE THE NEW REPUBLIC PIECE OFFERED A DELICIOUS QUOTE FROM A PRINCIPAL OF CARLYLE LET'S SUPPOSE YOU'RE THE CEO OF GM AND YOU GET A CALL FROM BAKER YOU THINK HEY THE FORMER SECRETARY OF STATE WANTS TO COME OUT AND HAVE LUNCH WITH ME I'LL GET THE PHOTOGRAPHER OUT HAVE MY PICTURE TAKEN RIGHT NOW JOHN SMITH OF GM IS PROBABLY TOO PREOCCUPIED TO SEE THE POPE LET ALONE JIM BAKER BUT THE POINT REMAINS THAT PLENTY OF EXECUTIVES ARE SUSCEPTIBLE TO SUCH BLANDISHMENTS A HARDEYED MONEY RUNNER BY CONTRAST PROBABLY SPENDS NOONTIME AT A DESK AND BECAUSE HE ISN'T CONCERNED WITH BUTTERING SOMEBODY UP HE'S MORE LIKELY TO HAVE SOMETHING HONEST TO SAY ABOUT THOSE IN POLITICAL OR CORPORATE POWER WHICH IS HELPFUL NOW THAT STATUS HAS MADE HIM A MEDIA TALKING HEAD ANOTHER MARVEL OF MONEY MANAGEMENT IS ITS INCREASING MOBILITY AS TAXING AUTHORITIES RESUME PUNISHING SUCCESS AFTER A RESPITE IN THE 1980S THE MORE FOOTLOOSE OF THESE BRAINS ARE ABLE TO FLEE TO MORE FAVORABLE JURISDICTIONS AND OFFSHORE IF NECESSARY AT THE SAME TIME RESTRICTIONS IMPOSED TO PROTECT INVESTORS UNFORTUNATELY HAVE THE EFFECT OF SHUTTING OFF ALL BUT THE RICH AND IN SOME CASES ALL AMERICANS PERIOD FROM THE BENEFITS OF THE CANNIEST OF THE SOLO MONEY MASTERS THESE GUYS CAN'T BE BOTHERED WITH THE DISCLOSURE AND OTHER REQUIREMENTS THAT CONFIDENCEBUILDING MEASURES IN RETAIL INVESTING ENTAIL AN INTENSE QUEST FOR GAIN UPSETS SOME EGGHEADS BUT THERE'S ANOTHER WAY TO LOOK AT THE MODERN FINANCIERS IN THE WORDS OF BYRON WIEN ANOTHER OLD LION OF MORGAN STANLEY THEY ARE ENGAGED IN THE ARBITRAGE BETWEEN IMAGINATION AND HISTORICAL REALITY THAT DOES CREATE SOMETHING EFFICIENCY OF CAPITAL AND THUS WEALTH IF IN THE UNGREEDY '90S THE ECONOMY IS AGAIN IN PLAY WE CAN DECRY ALL THE WAY TO THE BANK 9310190102 931019 LETTERS TO THE EDITOR DEVIL'S FOOD FRENZY CONCERNING THE SEPT 28 MARKETPLACE ARTICLE ON THE POPULARITY OF SNACKWELL'S DEVIL'S FOOD COOKIE CAKES I DON'T KNOW ABOUT OTHER AREAS OF THE US BUT THE ONLY SURE WAY TO BUY THESE COOKIES HERE IN BUFFALO IS TO EITHER ATTEMPT TO BRIBE THE DELIVERY MAN IN THE PARKING LOT OR IF YOU ARE LUCKY ENOUGH TO BE IN THE STORE WHEN THEY ARE STOCKING THE SHELVES TO TAKE THEM FROM THE STOCKBOY AS HE/SHE ATTEMPTS TO PUT THEM ON DISPLAY REGARDLESS OF WHETHER OR NOT THIS IS SIMPLY A MARKETING PLOY I CANNOT RECALL A CONSUMER FRENZY LIKE THIS SINCE THE CABBAGE PATCH DAYS NOW IF ONLY NABISCO COULD SQUEEZE SOME RASPBERRY IN ON TOP OF THAT MARSHMALLOW 9310190101 931019 BUSINESS BRIEF ITT CORP AGREEMENT REACHED ON SALE OF UNIT TO BRITISH COMPANY ITT CORP NEW YORK SAID IT AGREED TO SELL ITS ELECTRONIC COMPONENTS DISTRIBUTION UNIT TO FARNELL ELECTRONICS PLC OF BRITAIN FOR ABOUT 70 MILLION ITT SAID IT EXPECTS TO REPORT A GAIN IN THE FOURTH QUARTER FROM THE SALE IN THE 1992 FOURTH QUARTER ITT HAD A LOSS OF 617 MILLION OR 533 A SHARE ON REVENUE OF 57 BILLION IT HAD ABOUT 671 MILLION IN CHARGES IN THE YEAREARLIER PERIOD ITT ADDED THAT THE SALE OF THE UNIT A PART OF THE COMPANY'S ITT DEFENSE AND ELECTRONICS DIVISION IS CONSISTENT WITH ITS EFFORTS TO SHED NONCORE BUSINESSES IN 1992 THE DISTRIBUTION UNIT HAD SALES OF 270 MILLION ITT WITH INTERESTS IN FINANCIAL SERVICES INSURANCE HOTELS TIMBER AUTOMOTIVE PRODUCTS AND DEFENSE HAD 217 BILLION IN SALES LAST YEAR 9310190100 931019 SALOMON MOVES TO SETTLE SUIT BY AHMANSON QUIETLY WALL STREET FIRM PAYS OVER 30 MILLION IN '89 INFLATEDFEE CASE BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL SALOMON BROTHERS INC HAS QUIETLY PAID MORE THAN 30 MILLION TO SETTLE A LAWSUIT ALLEGING THAT THE INVESTMENT BANK INFLATED ITS FEES WHEN IT ADVISED HF AHMANSON & CO ON THE ACQUISITION OF BOWERY SAVINGS BANK ACCORDING TO INDIVIDUALS FAMILIAR WITH THE AGREEMENT THE CASE WHICH HAD BEEN SET TO GO TO TRIAL THIS WEEK IN LOS ANGELES STATE COURT INVOLVED AHMANSON'S 1987 PURCHASE OF BOWERY WHICH AHMANSON MERGED INTO HOME SAVINGS BANK OF NEW YORK AHMANSON THE NATION'S LARGEST THRIFT COMPANY SAID IN A 1989 LAWSUIT THAT IT BECAME SUSPICIOUS ABOUT THE INTEGRITY OF SALOMON'S ADVICE AFTER THE INVESTMENT BANK MADE AN EMBARRASSING MATH MISTAKE DURING THE TRANSACTION AFTER UNCOVERING THE MISTAKE AHMANSON SAID IN THE LAWSUIT IT TOOK A CLOSER LOOK AT SALOMON'S EFFORTS IN THE BOWERY DEAL AND REALIZED THAT SALOMON HAD GIVEN SELFSERVING ADVICE AND INFLATED ITS FEES THROUGHOUT THE DEAL AHMANSON BASED IN IRWINDALE CALIF CLAIMED THAT IT HAD LOSSES OF 200 MILLION AS A RESULT IT ACCUSED SALOMON OF NEGLIGENCE BREACH OF CONTRACT AND BREACH OF FIDUCIARY DUTY SALOMON DENIED THE THRIFT'S ALLEGATIONS WHEN THE SUIT WAS FILED THE VALUATION ERROR WAS THE TIP OF THE ICEBERG SAID DOUGLAS M RAWLINGS AN ATTORNEY FOR AHMANSON AT LOS ANGELES LAW FIRM BELIN RAWLINGS & BADAL IT WAS THE WAKEUP CALL WHICH LED TO THE DISCOVERY OF WHAT WAS REALLY GOING ON UNDER THE TERMS OF THE SETTLEMENT AGREEMENT REACHED THIS MONTH SALOMON PAID AHMANSON BETWEEN 30 MILLION AND 35 MILLION ACCORDING TO PEOPLE CLOSE TO THE DEAL A SPOKESMAN FOR SALOMON A UNIT OF SALOMON INC CONFIRMED THAT A SETTLEMENT HAD BEEN REACHED BUT DECLINED TO COMMENT ON ITS TERMS SAYING IT WAS COVERED BY A CONFIDENTIALITY PACT THE MATH ERROR WHICH SALOMON CONCEDED SEVERAL DAYS AFTER MAKING IT CAME WHEN THE INVESTMENT BANK WAS EVALUATING ONE OF BOWERY'S ASSETS BEFORE THE ACQUISITION NEW YORKBASED BOWERY LIKE OTHER BANKS HAD BEEN HEDGING AGAINST INTERESTRATE FLUCTUATIONS USING AN INTERESTRATE SWAP UNDER THE TERMS OF THE SWAP BOWERY HAD THE RIGHT TO RECEIVE ADJUSTABLERATE PAYMENTS FROM THE FEDERAL DEPOSIT INSURANCE CORP AND HAD THE DUTY TO MAKE FIXEDRATE PAYMENTS TO IT A SWAP'S VALUE AS AN ASSET DEPENDS ON SUCH VARIABLES AS PREVAILING INTEREST RATES AND THE TIME PERIOD OVER WHICH THE SWAP TAKES PLACE SALOMON TOOK THE POSITION THAT IT HAD ACCIDENTALLY FED THE WRONG TIME PERIODS INTO A COMPUTER THAT CALCULATED SWAP VALUES PEOPLE FAMILIAR WITH THE CASE SAID THE RESULT INSTEAD OF A 30 MILLION VALUE SALOMON CAME UP WITH NEGATIVE 25 MILLION RELYING ON SALOMON'S NUMBERS AHMANSON CANCELED THE SWAP SOON AFTER SALOMON DISCOVERED THE MISTAKE AND REIMBURSED THE THRIFT COMPANY BY REPLACING THE LOST SWAP WITH A NEW ONE SALOMON SAID IN COURT PAPERS SALOMON SAID THE PERSON RESPONSIBLE FOR THE COMPUTER ERROR THAT AROUSED AHMANSON'S SUSPICIONS IS NO LONGER WITH THE FIRM AHMANSON SAID IN THE SUIT THAT BEFORE THE MATH PROBLEM EVEN AROSE SALOMON HAD RECOMMENDED USING A DIFFERENT INTERESTRATE INDEX FOR THE SWAP AHMANSON HAD COMPLIED BUT THE SHIFT SUGGESTED BY SALOMON MEANT THAT BOWERY HAD TO RESTRUCTURE ITS ASSETS A RESTRUCTURING THAT WOULD HAVE PROVIDED SALOMON WITH MILLIONS OF DOLLARS IN UNDISCLOSED TRANSACTION FEES AHMANSON DROPPED SALOMON IT SAID IN ITS SUIT BECAUSE IT NO LONGER TRUSTED THE INVESTMENT BANK AHMANSON ALSO CLAIMED IN ITS SUIT THAT IN MAKING THE SWITCH TO THE NEW INDEX BOWERY HAD TO MAKE A SERIES OF CONCESSIONS TO THE FDIC THAT ENDED UP COSTING THE BANK 100 MILLION SALOMON ARGUED IN ITS COURT BRIEFS THAT THE CHANGE IN INDEXES ALLOWED AHMANSON TO MAKE HEDGES IN THE FORM OF COUNTER SWAPS THAT IT COULDN'T MAKE BEFORE THAT MADE BOWERY A MORE VALUABLAID AHMANSON ALSO ALLEGED IN THE SUIT THAT SALOMON FAILED TO CARRY OUT ITS FIDUCIARY DUTY WHEN SETTING UP INTERESTRATE SWAPS INSTEAD OF RELYING ON MARKETLEVEL INTEREST RATES THE THRIFT COMPANY ALLEGED IT USED RATE FIGURES FROM ITS OWN TREASURY DESK AHMANSON ARGUED THAT SUCH ACTIONS CONSTITUTED A CONFLICT OF INTEREST AND WENT OUTSIDE THE BOUNDS OF ORDINARY FINANCIAL PRACTICE AHMANSON'S THEORY WAS THAT SALOMON'S DESK COULD HAVE PROVIDED NUMBERS THAT FAVORED THE INVESTMENT BANK WHILE MARKETRATE NUMBERS WOULD HAVE BEEN INDEPENDENT AT THE TIME OF THE SUIT SALOMON DENIED ANY BREACH OF FIDUCIARY DUTY IN THE END SALOMON WOUND UP UNDOING THE SWAPS AFTER AHMANSON PROTESTED THE INVESTMENT FIRM'S HANDLING OF THE MATTER ACCORDING TO COURT BRIEFS FOR BOTH SIDES 9310190099 931019 BUSINESS BRIEF MCGRAWHILL INC THIRDQUARTER LOSS IS POSTED AFTER CHARGES FOR SUBSIDIARY MCGRAWHILL INC REPORTED A THIRDQUARTER LOSS OF 919 MILLION OR 187 A SHARE AFTER TAKING CHARGES IN CONNECTION WITH A TEXTBOOK UNIT IN THE YEAREARLIER PERIOD THE PUBLISHING COMPANY HAD NET INCOME OF 593 MILLION OR 122 A SHARE REVENUE FOR THE THIRD QUARTER ROSE 42 TO 555 MILLION MCGRAWHILL SAID IT HAD 1608 MILLION OR 327 A SHARE IN CHARGES AFTER RELATED TAX BENEFITS IN THE LATEST PERIOD THE COMPANY THIS MONTH BOUGHT OUT ITS PARTNER IN THE TEXTBOOK UNIT MACMILLAN/MCGRAWHILL SCHOOL PUBLISHING CO FOR 3375 MILLION A MOVE THAT PROMPTED MCGRAWHILL TO LOWER THE BOOK VALUE OF THE 50 STAKE IT HAD ALREADY OWNED WITHOUT THE CHARGES NET FOR THE PERIOD WOULD HAVE RISEN 16 TO 689 MILLION OR 140 A SHARE THE COMPANY SAID 9310190098 931019 AVON REPORTS FLAT PROFIT IN 3RD PERIOD CITING STEADY WEAKNESS IN US MARKET NEW YORK AVON PRODUCTS INC REPORTED FLAT THIRDQUARTER EARNINGS THAT REFLECTED CONTINUING WEAKNESSES IN ITS US MARKET THE DIRECT SELLER OF BEAUTY PRODUCTS HAD THIRDQUARTER NET OF 54 MILLION OR 75 CENTS A SHARE COMPARED WITH 539 MILLION OR 75 CENTS A SHARE IN THE YEAREARLIER PERIOD THIS YEAR'S RESULTS HOWEVER INCLUDE AN 8 MILLION PRETAX GAIN ON THE SALE OF A MINORITY INTEREST IN AN OFFSHORE INSURANCE COMPANY AND REFLECT A LOWER TAX RATE EXCLUDING THE GAIN THIRDQUARTER PERSHARE NET FELL 12 TO 66 CENTS A SHARE SALES INCHED UP 2 TO 9571 MILLION FROM 9388 MILLION ANALYSTS EXPRESSED SURPRISE AND DISAPPOINTMENT AT THE NUMBERS ALTHOUGH AVON SAID A MONTH AGO THAT IT WOULD REPORT LOWER THIRDQUARTER EARNINGS ANALYSTS HAD EXPECTED EARNINGS TO BE ABOUT 71 CENTS A SHARE EXCLUDING ANY ONETIME GAINS OF GREATEST CONCERN TO MANY ANALYSTS WAS AVON'S PERFORMANCE IN THE US WHICH GENERATED MORE THAN ONETHIRD OF ITS TOTAL SALES LAST YEAR THE COMPANY SAID SALES IN THE US FELL 4 WHILE PRETAX PROFIT DROPPED 36 AVON SAID HALF OF THE PROFIT DECLINE WAS DUE TO ADVERTISING SPENDING AND THE INTRODUCTION OF NEW SELLING METHODS SUCH AS A TOLLFREE TELEPHONE NUMBER WHILE THE OTHER HALF RESULTED FROM THE SALES DECLINE AVON ATTRIBUTED THE DROP IN US SALES TO THE WEAK ECONOMY AND A FEW STRATEGIC CHANGES MADE IN ITS SALES INCENTIVE PLANS BUT SOME ANALYSTS REMAIN CAUTIOUS I DON'T SEE HOW THE COMPANY CAN SUSTAIN THE GROWTH RATE WE'RE LOOKING FOR WITH THE US THIS WEAK SAID ALICE BEEBE LONGLEY ANALYST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP I DON'T KNOW WHAT THEIR PROBLEM IS BUT I DON'T THINK IT'S JUST THE ECONOMY SALES AND PRETAX PROFIT IN AVON'S INTERNATIONAL BUSINESS WERE UP 5 WITH GROWTH IN THE PACIFIC RIM AND LATIN AMERICA OVERCOMING A SALES DECLINE IN EUROPE DUE MAINLY TO THE STRONG DOLLAR ANALYSTS ALSO WERE SKEPTICAL OF PREDICTIONS REITERATED BY AVON'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER JAMES E PRESTON THAT FOURTHQUARTER RESULTS WOULD SURPASS LAST YEAR'S SALES OF 117 BILLION AND OPERATING PROFIT OF 1033 MILLION I DON'T UNDERSTAND WHY THEY'RE SO CONFIDENT THAT THE FOURTH QUARTER WILL BE BETTER SAID LYNNE HYMAN OF FIRST BOSTON AN AVON SPOKESMAN SAID THE PREDICTIONS ARE BASED ON THE COMPANY'S ASSESSMENT OF SALES TRENDS FOR THE FIRST NINE MONTHS AVON EARNED 267 MILLION OR 37 CENTS A SHARE COMPARED WITH 717 MILLION OR 1 A SHARE THE 1993 RESULTS REFLECT A FIRSTQUARTER NONCASH ACCOUNTING AND INCOME TAX CHARGE OF 1075 MILLION AS WELL AS A 10 MILLION CHARGE FOR DISCONTINUED OPERATIONS SALES ROSE 4 TO 275 BILLION FROM 264 BILLION AVON'S SHARES HAD BEEN TRADING NEAR 60 PRIOR TO LAST MONTH'S PESSIMISTIC THIRDQUARTER EARNINGS PROJECTION THEY CLOSED YESTERDAY AT 51375 DOWN 1 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9310190097 931019 LETTERS TO THE EDITOR BREAKING UP CABLE MONOPOLIES THERE IS A GLARING OMISSION IN THOMAS W HAZLETT'S SEPT 24 EDITORIAL PAGE COMMENTARY WHY YOUR CABLE BILL IS SO HIGH HE CHARACTERIZES THE CABLE ACT OF 1992 AS RELYING ON RATE REGULATION RATHER THAN PROMOTING COMPETITION IN FACT THE PRIMARY PURPOSE OF THE CABLE ACT WAS TO PROMOTE COMPETITION AND ONLY IN ITS ABSENCE TO REGULATE RATES THE ACT PROMOTED COMPETITION IN TWO WAYS FIRST IT REQUIRED THAT PROGRAMMERS PROVIDE THEIR PRODUCT TO OTHER FORMS OF VIDEO DELIVERY IN ADDITION TO CABLE OVER THE YEARS CABLE COMPANIES THAT CONTROLLED BOTH PROGRAMMING AND DISTRIBUTION WITHHELD THEIR PRODUCT FROM COMPETITORS SUCH AS SATELLITE AND WIRELESS CABLE DELIVERY SYSTEMS BECAUSE OF THE CABLE ACT SATELLITE COMPETITORS NOW HAVE ACCESS TO PROGRAMMING SUCH AS HBO SHOWTIME AND DISCOVERY THAT THEY DID NOT HAVE IN THE PAST THE SATELLITE SERVICES WILL BE UP AND RUNNING WITHIN THE NEXT YEAR YOU CAN THEN PUT AN 18INCH SATELLITE DISH IN THE PETUNIA BED AND SAY GOODBYE TO YOUR CABLE COMPANY SECOND IT ALSO ABOLISHED EXCLUSIVE FRANCHISE AGREEMENTS MANY CABLE OPERATORS DEMANDED THAT LOCAL GOVERNMENTS GRANT THEM A MONOPOLY AND BAR ALL COMPETITORS FROM OFFERING CABLE SERVICES IN THE FRANCHISE AREA THIS IS ANOTHER REASON WHY MORE THAN 90 OF AMERICANS HAVE ONLY ONE CHOICE OF A CABLE OPERATOR TODAY THE 1992 CABLE ACT MADE THIS ILLEGAL MR HAZLETT FAILS TO MENTION THAT THE CABLE ACT BEGAN TO BREAK UP THE CABLE MONOPOLIES HE ALSO IGNORES THE FACT THAT UNTIL THIS COMPETITION TAKES HOLD CONSUMERS NEED PROTECTION MR HAZLETT'S PROPOSED SOLUTION LETTING THE TELEPHONE COMPANIES INTO THE CABLE BUSINESS RUNS THE RISK OF REPLACING ONE MONOPOLY WITH ANOTHER WHILE PHONE COMPANIES WOULD LIKE TO ENTER THE VIDEO MARKETPLACE BY BUYING EXISTING CABLE COMPANIES THEY SHOULD ONLY BE ALLOWED TO ENTER AS COMPETITORS TO CABLE THE BLUEPRINT FOR A COMPETITIVE TELECOMMUNICATIONS MARKETPLACE MUST ENSURE MULTIPLE MEANS OF DELIVERING INFORMATION TO THE HOME AND OFFICE IN OTHER WORDS ONE COMPANY SHOULD NOT CONTROL BOTH THE PHONE AND THE CABLE WIRE RUNNING DOWN THE STREET THE GOAL IS TO CREATE CHOICES FOR CONSUMERS MOREOVER TWO COMPETING WIRES AND THE POTENTIAL FOR A THIRD WIRELESS OPTION ENSURE THAT SERVICE AND TECHNOLOGY ENTREPRENEURS AND NEW IDEAS WILL NOT BE FORCED TO PAY A HIGH TOLL OR SELL OUT TO THE OWNER OF THE WIRE FOR INSTANCE IN ITS RECENT MERGER WITH TCI THE NATION'S LARGEST CABLE COMPANY I FEEL STRONGLY THAT BELL ATLANTIC MUST DIVEST ITSELF FROM TCI'S CABLE HOLDINGS WITHIN THE BELL ATLANTIC SERVICE AREA ONLY THROUGH TRUE COMPETITION WITH THE CABLE AND TELEPHONE WIRES SERVING AS COMPETING AND INDEPENDENTLY OWNED DELIVERY SYSTEMS WILL DOWNWARD PRESSURE ON CABLE RATE RESULT AS FOR THE REGULATION OF CABLE RATES UNTIL COMPETITION ARRIVES IT SHOULD COME AS NO SURPRISE LEAST OF ALL TO THE FEDERAL COMMUNICATIONS COMMISSION THAT CABLE COMPANIES ARE TAKING ADVANTAGE OF ANY LOOPHOLE THE LONG TERM ANSWER IS CERTAINLY COMPETITION IN THE SHORT TERM LET'S MAKE SURE CONSUMERS ARE PROTECTED PROF HAZLETT'S IS A THINLY VEILED BRIEF FOR LETTING LOCAL TELEPHONE MONOPOLIES PROVIDE CABLE SERVICE IN THEIR SERVICE AREAS WHILE DENYING CABLE OPERATORS THE NECESSARY CAPITAL TO COMPETE WITH LOCAL TELEPHONE COMPANIES YOUR READERS WOULD HAVE BEEN BETTER ABLE TO UNDERSTAND HIS VIEWPOINT HAD HE DISCLOSED THAT HE WAS A PAID CONSULTANT ON BEHALF OF BELL ATLANTIC GTE AND NYNEX DURING THE FCC'S RECENT CABLE RATE RULEMAKING AS A RESULT OF THE FCC REGULATIONS CABLE CONSUMERS OVERALL WILL EXPERIENCE A BILLIONDOLLAR ANNUAL DECREASE IN REGULATED RATES MR HAZLETT DISINGENUOUSLY CITES CONTINENTAL CABLEVISION'S LOS ANGELES SYSTEM AS AN EXAMPLE OF A CABLE SYSTEM WHOSE PRICES HAVE REMAINED THE SAME DESPITE THE FCC'S NEW RATE REGULATIONS WHAT HE FAILS TO MENTION IS THAT THE FCC'S RULES PERMIT CABLE OPERATORS IN HIGHCOST AREAS TO MAKE A COSTOFSERVICE SHOWING TO JUSTIFY CURRENT RATES GIVEN VERY HIGH COSTS OF DOING BUSINESS IN LOS ANGELES CONTINENTAL HAS ELECTED TO EXERCISE ITS LEGAL RIGHT TO DO MAKE SUCH A SHOWING YOUR READERS SHOULD ALSO BE SKEPTICAL OF MR HAZLETT'S OTHER CLAIMS SUCH AS THE FCC HAS DATA SHOWING THE ACTUAL DIFFERENCE BETWEEN THE PRICES CHARGED IN COMPETITIVE CABLE MARKETS AND MONOPOLY ONES IS 27 IN FACT THE FCC DATA TO WHICH MR HAZLETT REFERS SHOWS THAT THE PRICES CHARGED IN COMPETITIVE MARKETS AND MARKETS THAT HAVE A SINGLE CABLE OPERATOR ARE STATISTICALLY INDISTINGUISHABLE FOR SYSTEMS OF 5000 OR MORE SUBSCRIBERS SINCE 85 OF US CABLE SUBSCRIBERS ARE SERVED BY SYSTEMS OF 5000 OR MORE SUBSCRIBERS THE 27 COMPETITIVE DIFFERENTIAL IS TRULY A RED HERRING NOT SURPRISINGLY SOME TELEPHONE COMPANIES HAVE URGED THE FCC TO CUT CABLE RATES BY THIS SUPPOSED 27 COMPETITIVE DIFFERENTIAL IS IT BECAUSE THE MONOPOLY PHONE COMPANIES HAVE SUDDENLY BECOME CONSUMER ACTIVISTS CLEARLY NOT WHAT THE PHONE COMPANIES WANT IS TO DEPRIVE CABLE OPERATORS OF THE REVENUES THAT THEY NEED TO UPGRADE AND REBUILD THEIR INFRASTRUCTURE WITH FIBER OPTICS BY ELIMINATING POTENTIAL COMPETITION FROM THE CABLE TV INDUSTRY THE PHONE COMPANIES COULD THEN MAINTAIN THEIR LOCAL TELEPHONE MONOPOLY OR SO SOME PHONE COMPANIES BELIEVE SUCH ANTICOMPETITIVE STRATEGIES HOWEVER ARE DOOMED TO FAIL INDEED THE ANNOUNCED BELLATLANTICTCI MEGAMERGER CLEARLY SIGNALS THE INEVITABILITY OF LOCAL TELEPHONE COMPETITION BELL ATLANTIC HAS NOW ALIGNED ITSELF WITH THE NATION'S LARGEST CABLE OPERATOR TO COMPETE AGAINST OTHER LOCAL PHONE COMPANIES 9310190096 931019 ECONOMY IRS IN BIG VICTORY FOR BUSINESS SHIFTS ITS POSITION ON LOSSES LINKED TO HEDGING BY RICK WARTZMAN AND LAURA JERESKI STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE INTERNAL REVENUE SERVICE REVERSED A FIVEYEAROLD POSITION ON THE TAX TREATMENT OF HEDGING TRANSACTIONS HANDING A HUGE VICTORY TO THE BUSINESS COMMUNITY UNDER THE NEW RULES LOSSES FROM MOST HEDGING TRANSACTIONS WILL BE CONSIDERED ORDINARY AND THEREFORE DEDUCTIBLE FROM TAXABLE INCOME IN THE WAKE OF A 1988 SUPREME COURT CASE INVOLVING ARKANSAS BEST CORP THE IRS HAD PREVIOUSLY CONTENDED THAT SUCH LOSSES WERE CAPITAL IN NATURE USABLE ONLY TO OFFSET CAPITAL GAINS THE CHANGE SHOULD AFFECT AS MUCH AS 50 BILLION OF CORPORATE HEDGES ACCORDING TO TAX LAWYERS WHO HAVE FOLLOWED THE SITUATION THE TREASURY DOESN'T ESTIMATE THE REVENUE EFFECT OF REGULATIONS BUSINESSES FREQUENTLY USE HEDGING TRANSACTIONS TO REDUCE RISK FROM THEIR NORMAL OPERATIONS FOR EXAMPLE A WHEAT FARM MAY ENTER INTO A FUTURES CONTRACT TO INSULATE ITSELF FROM PRICE FLUCTUATIONS AND LOCK IN ITS PROFIT MARGIN A WIDE VARIETY OF FINANCIAL PRODUCTS ARE USED TO HEDGE OTHER RISKS INCLUDING CHANGES IN INTEREST RATES OR FOREIGNEXCHANGE RATES INDUSTRY HAILED THE NEW RULES WE'RE VERY HAPPY SAID DAVID URBANI ASSISTANT TREASURER AT AIR PRODUCTS & CHEMICALS INC WHICH HAS ABOUT 225 MILLION OF INTERESTRATE SWAPS HEDGING PART OF ITS 12 BILLION IN TOTAL DEBT SINCE WE CAN'T PREDICT WHETHER THERE WILL BE A GAIN OR LOSS AHEAD OF TIME THE FACT THAT TAX TREATMENT IS PREDICTABLE IS VERY GOOD NEWS THIS IS A CEASEANDDESIST ORDER TO THE IRS SAID STANLEY SCHAEFER A CORPORATE TAX OFFICIAL AT MERRILL LYNCH & CO ALL COMPANIES WILL GO BACK TO DOING WHAT THEY DID BEFORE ARKANSAS BEST USING FUTURES TO HEDGE INTERESTRATE RISK AND THE RISK OF PRICE FLUCTUATIONS THE NEW RULES STEM IN PART FROM A UNANIMOUS TAX COURT RULING LAST JUNE THAT WENT AGAINST THE IRS THAT CASE IN WHICH MORE THAN 130 MILLION WAS AT STAKE INVOLVED HEDGING LOSSES INCURRED BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION A 160 DEFEAT IN THE TAX COURT IS CERTAINLY NOT A VERY ENCOURAGING SIGN OF THE IRS'S ABILITY TO WIN THOSE CASES IN THE FUTURE A SENIOR TREASURY OFFICIAL EXPLAINED FOR MONTHS A POWERFUL COALITION OF BUSINESS GROUPS FROM ARCHERDANIELSMIDLAND CO TO GENERAL MOTORS CORP TO GOLDMAN SACHS & CO HAS BEEN LOBBYING INTENSELY ON THE ISSUE AND RESOLVING THE CONTROVERSY HAD BECOME A TOP PRIORITY FOR TREASURY SECRETARY LLOYD BENTSEN AS WELL AS FOR MEMBERS OF CONGRESS WHO HAD REQUESTED THAT THE CLINTON ADMINISTRATION DEVISE A SOLUTION IN A LETTER TO THE CONGRESSIONAL TAXWRITING COMMITTEES YESTERDAY MR BENTSEN PREDICTED THAT THE REGULATIONS WILL PERMIT HUNDREDS OF CASES TO BE SETTLED AT THE ADMINISTRATIVE LEVEL AND IN THE COURTS THE REGULATIONS ARE LAID OUT IN THREE PARTS FIRST ARE TEMPORARY RULES THAT COVER HEDGES OF INTERESTRATE CURRENCY AND PRICE RISKS IN ORDER TO RECEIVE ORDINARY TREATMENT FOR HEDGES ENTERED INTO ON OR AFTER JAN 1 THE REGULATIONS REQUIRE TAXPAYERS TO IDENTIFY HEDGES UP FRONT ALONG WITH THE ITEM OR ITEMS IT HEDGES THIS PROVISION IS INTENDED TO KEEP COMPANIES FROM DECLARING TRANSACTIONS ARE HEDGES AFTER THEY SEE THEY WILL INCUR LOSSES THE FIRST SET OF RULES TAKES EFFECT IMMEDIATELY AND APPLIES TO ALL OPEN TAX YEARS A LOT OF INDUSTRIAL COMPANIES HAVE HAD QUESTIONS RAISED DURING AUDITS ABOUT THEIR HEDGING TRANSACTIONS AND NOW THE QUESTIONS WILL JUST DISAPPEAR SAID JAMES PEASLEE A PARTNER WITH THE LAW FIRM CLEARY GOTTLIEB STEEN & HAMILTON IN NEW YORK THE SECOND SET OF REGULATIONS WHICH ARE IN PROPOSED FORM INCLUDE MORESPECIFIC RULES FOR TAXPAYERS TO FOLLOW IN IDENTIFYING THEIR HEDGES AS THEY'RE ENTERED INTO THE FINAL SET OF RULES WHICH ALSO ARE PROPOSALS WOULD GOVERN WHEN GAINS AND LOSSES FROM BUSINESS HEDGES ARE REPORTED UNDER THESE REGULATIONS A TAXPAYER IS GENERALLY REQUIRED TO TAKE A GAIN OR LOSS FROM A HEDGE INTO ACCOUNT IN THE SAME PERIOD AS THE INCOME DEDUCTIONS GAIN OR LOSS ON THE ITEM BEING HEDGED THESE RULES APPLY TO MOST TAXPAYERS' HEDGES THOUGH NOT TO THOSE OF MOST SMALL BUSINESSES AND FARMS WHICH CAN CONTINUE TO USE SIMPLER ACCOUNTING METHODS THE IRS HAS ASKED FOR WRITTEN COMMENTS ON THE REGULATIONS WITHIN 60 DAYS AND HAS SCHEDULED A PUBLIC HEARING FOR JAN 19 TREASURY OFFICIALS STRESSED THAT IN DEVISING THE NEW RULES THEY FOLLOWED A LARGE BODY OF CASE LAW THAT GOES BACK TO THE 1920S AND THE IRS'S EARLIER POSITION NOTWITHSTANDING CONSISTENTLY TREATED HEDGING TRANSACTIONS AS PRODUCING ORDINARY GAINS AND LOSSES BUT AT THE SAME TIME THEY WANTED TO BUILD IN SOME NEW PROTECTIONS AGAINST TAXPAYER MANIPULATION INDEED THE IDENTIFICATION AND TIMING PROVISIONS WERE INCLUDED IN THE REGULATIONS PRECISELY TO PREVENT ABUSES THAT HAD BECOME COMMON BEFORE THE ARKANSAS BEST CASE IN HIS LETTER TO CONGRESS MR BENTSEN NOTED THAT THE REGULATIONS DON'T ALLOW ORDINARY TREATMENT FOR ALL BUSINESS HEDGES FOR INSTANCE HEDGES OF AN ORDINARY STREAM OF INCOME THAT FLOWS FROM A CAPITAL ASSET SUCH AS AN INSURANCE COMPANY HEDGING THE INTEREST IT EARNS ON A BOND IT HOLDS AS AN INVESTMENT WILL STILL GENERATE CAPITAL GAINS OR LOSSES ALTHOUGH THE CORPORATE COMMUNITY SEEMED THRILLED WITH THE RULES MR BENTSEN POINTED OUT TO LAWMAKERS THAT YOU MAY DECIDE THAT IT IS DESIRABLE TO EXPAND UPON THE APPROACH WE HAVE TAKEN 9310190095 931019 BUSINESS BRIEF CAROLCO PICTURES INC COMPANY CLEARS HURDLES IN FINANCIAL RESTRUCTURING CAROLCO PICTURES INC CLEARED MAJOR HURDLES IN ITS FINANCIAL RESTRUCTURING COMPLETING EXCHANGE OFFERS FOR TWO DEBT ISSUES AND AN OFFERING FOR THE SHARES OF VISTA ORGANIZATION LTD IT DOESN'T ALREADY HOLD THE FINANCIALLY TROUBLED INDEPENDENT FILM PRODUCER BASED IN LOS ANGELES SAID ABOUT 225 MILLION PRINCIPAL AMOUNT OF ITS 14 NOTES OR NEARLY 67 OF THE TOTAL HAD BEEN TENDERED AS HAD ABOUT 127 MILLION PRINCIPAL AMOUNT OF ITS 13 NOTES OR NEARLY 79 IN ADDITION 143 MILLION SHARES OF VISTA COMMON OR ABOUT 81 OF THE SHARES NOT ALREADY OWNED BY CAROLCO WERE TENDERED FOR PURCHASE CAROLCO ALREADY HOLDS A 48 STAKE IN VISTA A DEFUNCT MOVIE AND TELEVISION PRODUCTION AND FINANCING COMPANY VISTA SHAREHOLDERS HAD PUTS THAT COULD HAVE FORCED CAROLCO TO BUY THE SHARES FOR ABOUT 25 MILLION IN CASH WITH THE BUYOUT CAROLCO HAD TO RAISE ABOUT 5 MILLION IN CASH THE REST BEING NEW SECURITIES 9310190094 931019 PEOPLE PATTERNS BY ALAN L OTTEN THE RECESSION'S BITE WAS BROADER AND DEEPER THAN STANDARD ECONOMIC MEASURES INDICATED SO SAYS ANALYST TOM W SMITH OF THE UNIVERSITY OF CHICAGO'S NATIONAL OPINION RESEARCH CENTER HE NOTES THAT BY SUCH TRADITIONAL CRITERIA AS UNEMPLOYMENT RATES AND REAL DISPOSABLE INCOME THE 199091 RECESSION APPEARED MILD THOUGH LINGERING NORC'S WELLRESPECTED GENERAL SOCIAL SURVEY HOWEVER DISCLOSED A DARKER PICTURE THE SURVEY INTERVIEWED MORE THAN 1000 NATIONALLY REPRESENTATIVE ADULTS IN EARLY 1991 ASKING HOW THEY HAD FARED AT WORK AND FINANCIALLY IN THE PRECEDING YEAR ABOUT 850 WERE REINTERVIEWED IN EARLY 1992 ON HOW THEY HAD DONE IN THE INTERVENING 12 MONTHS AS FOR WORKRELATED PROBLEMS ONEFOURTH OF ALL HOUSEHOLDS REPORTED PAY CUTS FOR THE HUSBAND WIFE OR BOTH AT SOME TIME DURING THE TWO YEARS ANOTHER 16 HAD AT LEAST ONE ADULT LOSING HIS OR HER JOB ADDING IN OTHER PROBLEMS BEING OUT OF WORK AND LOOKING FOR A JOB FOR A MONTH OR MORE HAVING A BUSINESS THAT LOST MONEY BEING DEMOTED OR FAILING TO GET PROMOTED MR SMITH CALCULATES THAT AT LEAST HALF THE COUNTRY HAD ONE OR MORE WORKRELATED PROBLEMS DURING THE RECESSION WITH REGARD TO FINANCIAL PROBLEMS 28 REPORTED A MAJOR WORSENING OF THEIR FINANCIAL CONDITION BETWEEN 1990 AND 1992 AND JUST MORE THAN 25 SAID STORES AND OTHER CREDITORS HAD PRESSURED THEM TO PAY BILLS MORE THAN 11 HAD BEEN OBLIGED TO PAWN POSSESSIONS WHILE ABOUT 25 HAD GOODS REPOSSESSED AND MORE THAN 3 HAD GONE INTO BANKRUPTCY ALL IN ALL ALMOST TWO OUT OF FIVE HAD BEEN BESET BY ONE OR MORE SERIOUS FINANCIAL HARDSHIPS DURING THE TWO YEARS MOREOVER MR SMITH NOTES ON EVERY QUESTION ASKED THERE WERE MORE PROBLEMS IN THE 199192 YEAR THAN IN THE 199091 YEAR FOR EXAMPLE 146 OF THE SAMPLE HAD A PAY CUT IN THE LATER YEAR COMPARED WITH 55 IN THE EARLIER YEAR MR SMITH REPORTS THAT WORKRELATED AND FINANCIAL PROBLEMS HIT ESPECIALLY HARD AT YOUNGER WORKERS AND THOSE WHO ALREADY HAD LOW INCOMES FINANCIAL PROBLEMS WERE ALSO PARTICULARLY TROUBLESOME FOR BLACKS WOMEN HOUSEHOLDS WITH MANY CHILDREN AND THE SEPARATED AND DIVORCED ADULTS WHO GREW UP WITH DIVORCED PARENTS TEND TO BE MORE APPREHENSIVE ABOUT THEIR OWN MARRIAGES PAMELA WEBSTER A BROWN UNIVERSITY SOCIOLOGIST AND COLLEAGUES FROM THE UNIVERSITY OF MICHIGAN'S INSTITUTE FOR SOCIAL RESEARCH ANALYZED ANSWERS FROM MORE THAN 6300 ADULTS IN THEIR FIRST MARRIAGES ASKED TO RATE THEIR MARITAL HAPPINESS ON A SCALE OF ONE TO SEVEN THOSE WHOSE PARENTS HAD SEPARATED OR DIVORCED BEFORE THE CHILDREN WERE 16 OR WHO HAD NEVER LIVED WITH THEIR FATHER SHOWED HAPPINESS SCORES JUST ABOUT THE SAME AS THOSE WHO HAD GROWN UP IN INTACT FAMILIES ALMOST PARADOXICALLY HOWEVER CHILDREN OF BROKEN MARRIAGES WERE ALMOST TWICE AS APT TO SAY THAT AT SOME POINT DURING THE PRECEDING YEAR THEY HAD THOUGHT THEIR MARRIAGES MIGHT BE IN TROUBLE AND THIS WAS TRUE EVEN FOR THOSE WHO GAVE THEIR MARRIAGES THE HIGHEST SCORES ASKED TO RATE THEIR OWN CHANCES OF DIVORCING ALL BUT THE MOST HAPPILY MARRIED CHILDREN OF DIVORCE WERE FAR MORE LIKELY THAN CHILDREN OF INTACT FAMILIES TO CONSIDER THEIR OWN MARRIAGES AT RISK THE RESEARCHERS FOUND ALSO THAT AMONG THOSE IN LESSTHANVERYHAPPY MARRIAGES CHILDREN OF DIVORCE WERE MORE THAN TWICE AS PRONE TO ARGUE TO SHOUT OR HIT WHEN ARGUING AND TO REPORT THAT THEIR SPOUSES ABUSED DRUGS OR ALCOHOL THE TENDENCY TO THINK THAT ONE'S MARRIAGE MAY BE IN TROUBLE APPEARS TO REFLECT A UNIQUE LEGACY OF PARENTAL DIVORCE DR WEBSTER OBSERVES RURAL POVERTY DIFFERS FROM URBAN POVERTY IN SIGNIFICANT WAYS A TASK FORCE OF ACADEMICS AND OTHERS CONCERNED WITH RURAL PROBLEMS REPORTS THAT THE RURAL POOR ARE OLDER AND MORE PREDOMINANTLY WHITE HAVE MORE FAMILY MEMBERS AT WORK AND ARE MORE LIKELY TO BE IN ORDINARY FAMILIES IN 1990 JUST OVER NINE MILLION PEOPLE IN RURAL AREAS FELL BELOW OFFICIAL POVERTY DEFINITIONS THE TASK FORCE SAYS COMPARED WITH MORE THAN 245 MILLION IN METROPOLITAN AREAS WHICH INCLUDE SUBURBS AS WELL AS INNER CITIES ALMOST THREEFOURTHS OF THE RURAL POOR WERE WHITE COMPARED WITH LESS THAN TWOTHIRDS OF THE URBAN POOR AND 14 OF THE RURAL POOR WERE 65 OR OLDER 50 ABOVE THE LEVEL OF OLD FOLKS AMONG URBAN POOR ALMOST 65 OF POOR RURAL FAMILIES HAD AT LEAST ONE MEMBER FORMALLY EMPLOYED COMPARED WITH 54 IN URBAN AREAS UNLIKE THE SITUATION IN THE CITIES MORE OF THE RURAL POOR LIVE IN MARRIEDCOUPLE FAMILIES THAN IN FEMALEHEADED FAMILIES THE REPORT SAID 44 OF THE RURAL POOR ARE IN MARRIEDCOUPLE FAMILIES COMPARED WITH 31 OF THE CITY POOR AND 30 OF THE RURAL POOR ARE IN FEMALEHEADED FAMILIES WELL BELOW THE 40 IN THE CITIES HOWEVER THE RURAL POOR WERE MORE LIKELY TO BE PERSISTENTLY POOR REGARDLESS OF RACE FOR EXAMPLE 43 OF POOR RURAL BLACKS EXPERIENCED POVERTY FOR LONGER THAN 10YEAR PERIODS COMPARED WITH 30 OF POOR URBAN BLACKS MORE THAN 55 OF THE RURAL POOR AND NEARLY 97 OF POOR RURAL BLACKS LIVE IN THE SOUTH ASSIMILATION AT WORK IMMIGRANTS WHO ENTERED THE US BETWEEN 1987 AND 1990 HAD MEDIAN HOUSEHOLD INCOMES OF 19600 IN 1990 COMPARED WITH 23900 FOR THOSE WHO HAD ENTERED IN 1985 AND 1986 AND JUST UNDER 26000 FOR THOSE WHO HAD COME IN 1980 AND 1981 ACCORDING TO CENSUS BUREAU SPECIALIST SUSAN LAPHAM STATES WITH THE HIGHEST DIVORCE RATES LAST YEAR WERE ARKANSAS OKLAHOMA WYOMING TENNESSEE AND ARIZONA THE NATIONAL CENTER FOR HEALTH STATISTICS REPORTS MASSACHUSETTS HAD THE LOWEST DIVORCE RATE FOLLOWED BY CONNECTICUT NEW YORK NEW JERSEY AND PENNSYLVANIA 9310190093 931019 LETTERS TO THE EDITOR HUMAN RIGHTS ABUSE TOP CLINTON TARGET YOUR OCT 1 EDITORIAL OF ASIA RHETORIC GAP INCLUDED A DESCRIPTION OF THE STRATEGIC INTERESTS THE US HAS IN INDONESIA HOWEVER AS YOU CRITICIZED THE CLINTON ADMINISTRATION FOR LACKING A POLICY TO MATCH ITS VISION FOR A NEW PACIFIC COMMUNITY YOU FAILED TO ACKNOWLEDGE THAT PRESIDENT CLINTON HAS MADE HUMAN RIGHTS THE HALLMARK OF DEMOCRACY A TOP PRIORITY IN ITS RELATIONS WITH OTHER COUNTRIES WHILE SOME MAY BELIEVE IT WOULD BE NICE FOR THE US GOVERNMENT TO CARE ABOUT HUMAN RIGHTS IF NOTHING ELSE WERE AT STAKE THIS ADMINISTRATION WITH THE ENDORSEMENT OF THE SENATE FOREIGN RELATIONS COMMITTEE HAS PUT ITS MONEY WHERE ITS MOUTH IS PRESIDENT CLINTON REALIZES THAT TO ACHIEVE ANY SIGNIFICANT IMPROVEMENT IN HUMAN RIGHTS CONDITIONS WE MUST DO MORE THAN JUST RAISE SUCH CONCERNS WITH INDONESIA YOU DESCRIBED THE INDONESIANS AS FEELING AS IF THEY WERE BEING NIBBLED TO DEATH BY DUCKS DUE TO THE ATTENTION THE US HAS FOCUSED ON HUMAN RIGHTS VIOLATIONS OVER THE PAST SEVERAL WEEKS THE US HAS CERTAINLY SENT A CLEAR SIGNAL TO THE INDONESIAN GOVERNMENT THAT WE WILL NOT CONDONE NOR TOLERATE THE KIND OF SYSTEMATIC VIOLATIONS PERPETRATED BY THE INDONESIAN ARMED FORCES IN EAST TIMOR BY EXERTING PRESSURE ON THE INDONESIAN ARMED FORCES WHICH MURDERED AT LEAST 100 EAST TIMORESE PROTECTORS IN DILI IN NOVEMBER 1991 AND HAS TORTURED AND OPPOSED HUNDREDS OF THOUSANDS OF EAST TIMORSE SINCE THE INDONESIAN INVASION OF THE ISLAND IN 1975 WE ARE SIGNALING THAT HUMAN RIGHTS FIGURE PROMINENTLY INTO THE TOTAL OF OUR INTERESTS TO LEAVE OUT THIS IMPORTANT COMPONENT IS TO UNDERMINE AMERICAN VALUES AND FOREIGN POLICY 9310190092 931019 TECHNOLOGY BRISTOLMYERS SAYS PATIENTS' DEATHS WON'T HALT TRIALS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BRISTOLMYERS SQUIBB CO SAID REPORTS OF PATIENTS' DEATHS IN JAPAN FOLLOWING TREATMENT WITH A DRUG THAT IT HAS LICENSED WON'T AFFECT PLANS TO SEEK APPROVAL IN THE US AND ELSEWHERE IN THE WORLD THE SALE OF BVARAU AN ANTIVIRAL TREATMENT USED IN JAPAN FOR HERPES AND SHINGLES IS REPORTED BY THE FINANCIAL TIMES TO HAVE BEEN HALTED IN JAPAN AFTER THE DEATHS OF THREE PATIENTS IN JAPAN THE DRUG IS SOLD BY ANOTHER COMPANY NIPPON SHOJI BRISTOLMYERS WAS NOTIFIED OF THE DEATHS BY YAMASA SHOJU THE JAPANESE COMPANY THAT DISCOVERED THE DRUG ACCORDING TO A BRISTOLMYERS SPOKESMAN THE JAPANESE PATIENTS ARE SAID TO HAVE TAKEN THE DRUG WHILE ALSO TAKING AN ANTICANCER AGENT CALLED FLUOROURACIL THE DRUG'S LABELING IN JAPAN SPECIFICALLY WARNS OF POSSIBLE TOXIC INTERACTIONS WITH FLUOROURACIL THE BRISTOLMYERS SPOKESMAN SAID BRISTOLMYERS LICENSED BVARAU FROM YAMASA SHOJU IN 1989 TO MARKET THE DRUG WORLDWIDE WITH THE EXCEPTION OF JAPAN AND SOME OTHER ASIAN COUNTRIES BRISTOLMYERS IS TESTING THE DRUG AS A TREATMENT FOR VARICELLAZOSTER VIRUS INFECTIONS A FORM OF HERPES IN PATIENTS WITH DAMAGED IMMUNE SYSTEMS SUCH AS THOSE WITH AIDS AND THOSE UNDERGOING CANCER TREATMENTS A BRISTOLMYERS SPOKESMAN SAID ITS CLINICAL INVESTIGATORS IN THE US AND ELSEWHERE WERE WARNED BEFORE TRIALS BEGAN AGAINST USING THE DRUG WITH THE ANTICANCER AGENT AND WILL BE WARNED AGAIN THE FOOD AND DRUG ADMINISTRATION HAS ALSO BEEN NOTIFIED OF THE EVENTS IN JAPAN THE BRISTOLMYERS SPOKESMAN SAID GIVEN THAT THIS WAS A KNOWN REACTION THE DEVELOPMENT IN JAPAN WON'T CAUSE OUR CLINICAL TRIALS TO BE DELAYED OR STOPPED HE SAID 9310190091 931019 INTERNATIONAL NAFTA FEVER LEAVES MEXICO OVERBUILT RENTS TUMBLE AMID GLUT OF NEW OFFICE SPACE BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY FOR MORE THAN 25 YEARS THE STRUCTURE OF AN UNFINISHED HOTEL HAS LOOMED ABOVE THE SKYLINE HERE A RUSTING MONUMENT TO BAD PLANNING BY REALESTATE DEVELOPERS TODAY THE PROJECT IS FINALLY ON ITS WAY TO BEING FINISHED BUT IT MAY REMAIN A MONUMENT TO EXCESSIVE OPTIMISM DEVELOPERS SAY THE PROBLEM IS THAT THE PROJECT KNOWN AS THE WORLD TRADE CENTER IS ARRIVING ON THE MARKET AT EXACTLY THE WRONG TIME THE PROJECT SHOULD HIT THE MARKET BY THE MIDDLE OF NEXT YEAR RIGHT IN THE MIDDLE OF A REAL ESTATE BUST IN MANY WAYS THE RESURGENT INTEREST IN REAL ESTATE HAS BEEN A BET ON THE NORTH AMERICAN FREE TRADE AGREEMENT WITH DEVELOPERS ASSUMING THAT US COMPANIES WOULD WANT TO SET UP OFFICES HERE AND WOULD REQUIRE BETTER FACILITIES THAN WERE AVAILABLE WITH MEXICO'S ECONOMY GENERALLY REBOUNDING OVER THE PAST COUPLE OF YEARS DEVELOPERS BEGAN THROWING UP PRIME OFFICE BUILDINGS AS FAST AS THEY COULD BUT EVERYBODY HAD THE SAME IDEA AT THE SAME TIME TOGETHER DEVELOPERS HAVE BUILT AS MUCH OFFICE SPACE IN THE PAST TWO YEARS IN MEXICO CITY AS HAD BEEN BUILT IN THE PREVIOUS 25 AND MUCH MORE SPACE IS STILL SCHEDULED TO BECOME AVAILABLE IN THE NEXT COUPLE OF YEARS MEANWHILE ECONOMIC GROWTH IN MEXICO HAS SLOWED TO LESS THAN 2 A YEAR AND MANY WOULDBE US TENANTS ARE WAITING TO SEE WHAT HAPPENS TO NAFTA THE SHARP INCREASE IN UNOCCUPIED OFFICE SPACE HAS ALREADY KNOCKED RENTAL RATES DOWN 15 TO 20 IN THE PAST FEW MONTHS SAYS TOM BOYD DIRECTOR GENERAL OF CB/SARE A DEVELOPMENT JOINT VENTURE RENTS MAY NOT FALL AS FAST AS THEY WOULD DURING A SIMILAR GLUT IN THE US BECAUSE MOST BUILDINGS IN MEXICO ARE FINANCED ENTIRELY WITH CASH THAT MEANS THERE AREN'T MANY BANKS OR PENSION FUNDS PRESSURING THE MEXICAN BUILDING OWNERS DEMANDING THAT THEY DO WHAT'S REQUIRED TO GENERATE CASH AND START PAYING OFF LOANS STILL INCREASING VACANCY WILL ENSURE A CONTINUED DROP IN RENTAL RATES HISTORICALLY VACANCY RATES FOR PRIME OFFICE SPACE IN MEXICO CITY HAVE BEEN JUST 1 PHENOMENALLY LOW COMPARED WITH THE 10 VACANCY RATES THAT DEVELOPERS CONSIDER TO BE NORMAL IN THE US THE LOW RATE IN MEXICO EXPLAINED WHY RENTS IN THE CAPITAL HAVE TYPICALLY BEEN ABOUT THREE TIMES WHAT THEY ARE IN MAJOR US CITES BUT THE FLOOD OF NEW BUILDINGS HITTING THE MARKET HAS ALREADY INCREASED MEXICO CITY'S VACANCY RATE TO 13 SOME RESEARCH FIRMS ESTIMATE THE RATE WILL REACH ALMOST 20 BY 1995 AND THAT ASSUMES THE US CONGRESS APPROVES NAFTA WE'RE GETTING REALLY OVERBUILT HERE AND THE PROBLEMS WITH THE ECONOMY AREN'T HELPING ANY SAYS PEDRO AZCUE A SENIOR VICE PRESIDENT AT LASALLE PARTNERS A LEASING AGENT IT'LL BE INTERESTING TO SEE WHO GETS THE TENANTS THE WORLD TRADE CENTER PROJECT SHOWS HOW THE REALESTATE FEVER MADE DEVELOPERS WILLING TO OVERLOOK EVEN OBVIOUS PROBLEMS WITH POTENTIAL PROJECTS THE MAIN STRUCTURE WAS ORIGINALLY SUPPOSED TO BE THE HOTEL DE MEXICO FINISHED IN TIME TO HOUSE VISITORS TO THE OLYMPIC GAMES HELD HERE IN 1968 BUT THE MONEY RAN OUT AND A SUBSEQUENT EFFORT AT A TRADECENTER SORT OF PROJECT ALSO COLLAPSED NOW GUTSA PROMOTORA SA WHICH IS FINISHING THE PROJECT WILL HAVE TO OVERCOME A REPUTATION SO BAD THAT SOME DEVELOPERS REFER TO THE GHOSTS AT THE WORLD TRADE CENTER IN ADDITION GUTSA HAS TO WORK WITHIN THE EXISTING STRUCTURE AMONG OTHER PROBLEMS THE BUILDING HAS CEILINGS THAT AT A MAXIMUM OF 7 1/2 FEET WILL BE UNACCEPTABLY LOW FOR MANY TENANTS SANTA FE IS THE OTHER PROJECT THAT DEVELOPERS POINT TO AS A PRIME EXAMPLE OF OVERHEATED REALESTATE SPECULATION UNTIL RECENTLY THE LAND WAS A GARBAGE DUMP MADE EVEN UGLIER BECAUSE OF ITS DAYS AS AN OPENPIT MINE HUNDREDS OF HOMELESS PEOPLE LIVED IN CAVES THERE AND DOGS AND PIGS SCAVENGED FOR FOOD IN THE DUMP BUT THE MEXICO CITY GOVERNMENT DECIDED THAT IT COULD USE THE AREA TO ILLUSTRATE HOW WORLDCLASS REALESTATE PROJECTS COULD BE DONE IN MEXICO NOW LATIN AMERICA'S LARGEST SHOPPING MALL IS BEING BUILT THERE AS WELL AS A SMALL CITY'S WORTH OF OFFICE BUILDINGS IT WILL INCLUDE A SORT OF CITY CENTER AND HOUSING FOR THE HOMELESS WHO LIVED THERE THERE WILL EVEN BE AN 18HOLE GOLF COURSE IN THE END PLANS CALL FOR 200000 PEOPLE TO WORK ON THE 2100 ACRE 10 BILLION PROJECT THE PROBLEM IS THAT SANTA FE IS NINE MILES WEST OF THE MAIN PART OF MEXICO CITY WHERE MOST COMPANIES LIKE TO KEEP THEIR OFFICES THE RETAIL PORTION OF THE SANTA FE PROJECT WHICH HAS ATTRACTED SOME BIGNAME STORES IS EXPECTED TO DO WELL BECAUSE IT'S RIGHT NEXT TO A MAJOR HIGHWAY THAT RUNS THROUGH THE WEALTHIEST SUBURBS OF MEXICO CITY BUT THE OUTLOOK FOR OFFICE SPACE ISN'T NEARLY AS BRIGHT IT CAN BE A HALFHOUR CAB RIDE IN TRAFFIC JUST TO THE WESTERN EDGE OF THE SPRAWLING DOWNTOWN AREA SO TENANTS HAVE BEEN SLOW TO SIGN UP FOR SOME OF THE BUILDINGS THERE DEVELOPERS ALSO SAY THERE IS AN OFFICESPACE GLUT DEVELOPING IN SOME OTHER BIG MEXICAN CITIES PARTICULARLY GUADALAJARA AND MONTEREY STILL THE BIGGEST RISK SEEMS TO BE IN OFFICE SPACE IN MEXICO CITY INVESTING IN REAL ESTATE HAS ALWAYS BEEN A MORE EMOTIONAL ISSUE IN MEXICO THAN IN THE US REVOLUTIONS HAVE BEEN FOUGHT OVER THE RIGHTS OF INDIVIDUALS TO OWN LAND IN ADDITION AS WAVES OF POLITICAL CHANGE AND OCCASIONAL HYPERINFLATION WASHED OVER MEXICO IN THE PAST CENTURY REAL ESTATE IS THE ONE INVESTMENT THAT HAS BEEN CONSISTENTLY SOLID SO WITH MEXICO'S ECONOMY GENERALLY THRIVING OVER THE PAST TWO YEARS IT'S NO SURPRISE THAT PEOPLE THREW MONEY INTO REAL ESTATE ESPECIALLY CONSIDERING THAT THERE IS SO LITTLE MARKET RESEARCH AVAILABLE IN MEXICO THAT IT'S HARD FOR DEVELOPERS TO KNOW WHAT COMPETITORS ARE PLANNING THE LAST TIME MEXICO CITY DEVELOPED A GLUT OF OFFICE SPACE IN THE MID1980S AN EARTHQUAKE RAVAGED THE CITY AND WIPED OUT THE EXCESS SPACE ASSUMING NO SUCH CATASTROPHE STRIKES AGAIN SOON THOUGH MANY OF MEXICO'S BIG FAMILY DEVELOPERS WILL BE EXPOSED THE MEXICAN BANKS WILL HAVE SOMEWHAT SMALLER EXPOSURE DEVELOPERS SAY THEY HAVE BORROWED JUST 20 TO 25 ON SOME PROJECTS THE FOREIGN MONEY HAS BEEN QUITE LIMITED AS WELL THE BIGGEST RISK APPARENTLY IS BEING TAKEN BY INVESTOR GEORGE SOROS AND THE REICHMANN BROTHERS THEY ARE CLOSE TO SIGNING AN AGREEMENT TO DEVELOP A PROJECT AT SANTA FE THAT MIGHT COST 600 MILLION PEOPLE INVOLVED WITH SANTA FE SAY SPOKESMEN DECLINED TO COMMENT A SPOKESMAN FOR ANOTHER DEVELOPER HAS MADE AN UNFORTUNATE COMPARISON SAYING THAT SANTA FE IS COMPARABLE IN SIZE TO THE HUGE CANARY WHARF PROJECT IN LONDON THE OFFICE DEVELOPMENT THAT BROUGHT THE REICHMANNS TO GRIEF THE WHOLE SANTA FE PROJECT IS JUST TOO MUCH ESPECIALLY FOR THE WAY THE MARKET IS NOW SAYS DIONISIO SANCHEZ CARBAJAL A SENIOR EXECUTIVE WITH GRUPO INMOBILIARIO SARE A BIG DEVELOPER BASED HERE IF NAFTA IS SIGNED THE MARKET CAN ABSORB ALL THE NEW OFFICE SPACE IN MEXICO CITY IN THE NEXT 36 MONTHS IF NAFTA ISN'T SIGNED THOUGH NOT ONLY WILL US COMPANIES NOT COME BUT IT'LL BE A BIG PSYCHOLOGICAL FACTOR HURTING THE MARKET 9310190090 931019 CREDIT RATINGS NISSAN MOTOR CO TOKYO MOODY'S INVESTORS SERVICE INC PLACED THE LONGTERM DEBT RATINGS OF THIS AUTO MAKER AND ITS UNITS UNDER REVIEW FOR A POSSIBLE DOWNGRADE CITING IN PART WEAKENING AUTO DEMAND IN JAPAN ABOUT ONE TRILLION YEN 934 BILLION IS AFFECTED BY THE REVIEW THE RATINGS AGENCY SAID THE REVIEW WILL FOCUS ON NISSAN'S ABILITY TO RESPOND TO SLACKENING DEMAND FOR CARS IN JAPAN AND ON THE OUTLOOK FOR NEWMODEL INTRODUCTIONS MOODY'S SAID IT WILL ALSO STUDY HOW THE APPRECIATION OF THE YEN HAS AFFECTED NISSAN'S PROFITABILITY 9310190089 931019 BUSINESS BRIEF TANDY CORP AGREEMENT IS REACHED TO SELL ASSETS OF MEMTEK PRODUCTS TANDY CORP SAID ITS SUBSIDIARY TE ELECTRONICS INC AGREED TO SELL THE ASSETS OF ITS MEMTEK PRODUCTS DIVISION WHICH MAKES MEMOREX AUDIOTAPE AND VIDEOTAPE AND OTHER RELATED ASSETS TO AN UNIDENTIFIED BUYER FOR 65 MILLION THE FORT WORTH TEXAS RETAILER OF CONSUMER ELECTRONICS AND COMPUTERS SAID ITS UNIT EXPECTS TO RECEIVE AN ADDITIONAL 30 MILLION FROM THE LIQUIDATION OF RETAINED RECEIVABLES TANDY SAID THE EXPECTED PROCEEDS ARE IN LINE WITH ITS PREVIOUS RESTRUCTURING ESTIMATES FOLLOWING A DECISION TO CONCENTRATE ON RETAILING TANDY IN RECENT MONTHS HAS DIVESTED ITSELF OF A NUMBER OF MANUFACTURING OPERATIONS TANDY SAID IT STILL SEEKS BUYERS FOR UNITS THAT MAKE PRINTED CIRCUIT BOARDS AND READYTOASSEMBLE FURNITURE 9310190088 931019 CREDIT CARDS BANKS' PUSH TO SELL DEBIT CARDS IS MOSTLY UPHILL BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FACED WITH A SATURATED MARKET FOR TRADITIONAL CREDIT CARDS AND CONSUMERS' GROWING RESISTANCE TO HIGH INTEREST RATES MANY BANK AND CREDITCARD ORGANIZATIONS ARE LAUNCHING A FULLCOURT PRESS TO SELL CONSUMERS ON THE DEBIT CARD BUT IT'S LIKELY TO BE A TOUGH SELL THOUGH A DEBIT CARD LOOKS LIKE A CREDIT CARD IT AUTOMATICALLY DEDUCTS DEBITS IN BANKING PARLANCE THE PRICE OF A PURCHASE DIRECTLY FROM A CONSUMER'S CHECKING ACCOUNT USUALLY WITHIN 24 HOURS CONSUMERS DON'T INCUR CARRYING CHARGES ON UNPAID BALANCES BECAUSE THERE AREN'T ANY UNPAID BALANCES BUT THEY ALSO DON'T GET THE LUXURY OF PAYING FOR THEIR PURCHASES 30 DAYS OR SO LATER AND THEY WILL STILL BE EXPECTED TO PAY A FEE TO SELL DEBIT CARDS BANKS ARE STRESSING CONVENIENCE WITH THE CARDS CONSUMERS DON'T HAVE TO WRITE CHECKS OR CARRY AROUND LOTS OF CASH THEY RECEIVE ONE BILLING STATEMENT DETAILING THEIR MONTHLY PURCHASES AND THEY DON'T RUN THE RISK OF CHARGING MORE THAN THEY CAN PAY OFF IN A SINGLE MONTH IT CONSOLIDATES FINANCES AND ALLOWS CONSUMERS TO BETTER MANAGE THEIR MONEY SAYS BARBARA VELTE A CHASE MANHATTAN VICE PRESIDENT BUT SO FAR CONSUMERS AREN'T CLAMORING FOR THE NEW CARDS CHASE MANHATTAN BANK RECENTLY SENT COMPUTER PROGRAMMER MICHAEL HOROWITZ A NEW VISA AUTOMATIC TELLER MACHINE CARD THAT DOUBLES AS A DEBIT CARD I DIDN'T KNOW WHAT IT WAS HE SAYS OTHER CONSUMERS AREN'T COMFORTABLE WITH THE IDEA OF IMMEDIATE ACCESS TO THEIR CHECKING ACCOUNTS I DON'T WANT TO HAVE ANYBODY HAVING ELECTRONIC ACCESS TO MY ACCOUNT TO PULL MONEY OUT SAYS STEPHEN LAZARUS A NEW YORK EXECUTIVE RECRUITER HOW DO I KEEP TRACK OF MY ACCOUNTS AND MANY SAVVY CONSUMERS LIKE TO RIDE THE FLOAT COLLECTING INTEREST ON THE MONEY IN THEIR CHECKING ACCOUNTS FOR THE TWO OR SO DAYS IT TAKES FOR A CHECK TO CLEAR THEIR BANK BUT THE BANKS NEED AN ALTERNATIVE SOURCE OF EARNINGS AFTER THE CREDITBUYING BINGE OF THE 1980S IN WHICH CONSUMERS ACCUMULATED HUGE FINANCING CHARGES ON CREDITCARD PURCHASES BANKS ARE FACING A NEW ENVIRONMENT CONSUMERS ARE TRYING TO TAKE CONTROL OF THEIR FINANCIAL LIVES BY AMONG OTHER THINGS ELIMINATING THE HIGH FINANCE CHARGES ASSOCIATED WITH TRADITIONAL CARDS IF CONSUMERS REALLY DO REDUCE THEIR CREDITCARD PURCHASES BANKS AND CREDITCARD ORGANIZATIONS WILL NEED TO REPLACE A LARGE PORTION OF THAT LOST INCOME FOR VISA USA'S MEMBER BANKS FOR EXAMPLE AN ESTIMATED 80 OF CREDITCARD EARNINGS COME FROM CARRYING CHARGES DEBIT CARDS AREN'T NEW AND THEY HAVE GAINED SOME MEASURE OF ACCEPTANCE IN CALIFORNIA AND AMONG SOME VENDORS SUCH AS GROCERY STORES AND GAS STATIONS ACCORDING TO THE NILSON REPORT A CREDITCARD INDUSTRY NEWSLETTER THERE ARE CLOSE TO 40 MILLION DEBIT CARDS OUTSTANDING IN THE US ABOUT ONE FIFTH OF THE TOTAL NUMBER OF TRADITIONAL ATM CARDS LAST YEAR CONSUMERS CHARGED 1806 BILLION ON DEBIT CARDS UP FROM 1336 BILLION IN 1991 BUT THE PAYMENTS ARE ONLY 05 OF TOTAL CONSUMER PAYMENTS LESS THAN THE AMOUNT OF VOLUME GENERATED BY FOOD STAMPS AND CONSUMERS AREN'T ALONE IN RESISTING THE IDEA MANY BANKS HAVE YET TO SIGN ON CITICORP'S CITIBANK THE LARGEST ISSUER OF CREDIT CARDS IN THE US HAS YET TO WARM TO THE CONCEPT BECAUSE IT ISN'T SURE THAT CONSUMERS ARE INTERESTED A BANK EXECUTIVE SAYS MEANWHILE IT IS EXPLORING THE IDEA OF JOINING THE NEW YORK CASH EXCHANGE A REGIONAL ATM NETWORK IF BANK CARDS CAN BE USED AS DEBIT CARDS WE DON'T WANT OUR CUSTOMERS LEFT OUT AN OFFICIAL SAYS BOTH VISA AND MASTERCARD INTERNATIONAL ARE AGGRESSIVELY COURTING BANKS ACROSS THE COUNTRY BECAUSE UNLIKE CREDIT CARDS BANKS WILL BE ABLE TO ISSUE EITHER MASTERCARD OR VISA DEBIT CARDS BUT NOT BOTH BANKS WILL GET FEES FROM MERCHANTS WHO ACCEPT THE CARDS THEY WILL ALSO SAVE SOME MONEY THROUGH REDUCED CHECKPROCESSING OPERATIONS ON SEPT 20 MASTERCARD UNVEILED A CAMPAIGN TO EDUCATE CONSUMERS ON DEBIT CARDS WHICH IT CALLS CASH CARDS INCLUDED WAS AN ATM CASH CARD QUIZ WRITTEN WITH THE NATIONAL COALITION FOR CONSUMER EDUCATION TO HELP CONSUMERS LEARN ABOUT MAKING PURCHASES WITH DEBIT CARDS THE FOLLOWING DAY VISA STARTED A GRASSROOTS INITIATIVE TO ILLUSTRATE THE BENEFITS OF DEBIT CARDS IT CALLS ITS VERSION OF THE DEBIT CARD A CHECK CARD BECAUSE OF THE APPARENT CONFUSION AMONG CONSUMERS ABOUT WHAT THE TERM DEBIT MEANS IT SOUNDS TOO MUCH LIKE THE WORD DEBT SAYS A VISA SPOKESWOMAN VISA IS OFFERING CUSTOMERS SUCH FREEBIES AS A BAG OF M&M'S OR A DISPOSABLE CAMERA AS AN INCENTIVE TO USE THE CARD YOU HAVE TO HELP MOTIVATE CONSUMERS TO USE THE CARD FOR THE FIRST TIME SAYS PETER GUSTAFSON SENIOR VICE PRESIDENT AT VISA WE USE INCENTIVES AS AN EXTRA STIMULUS YOU HAVE TO TRAIN CONSUMERS 9310190087 931019 NORTHWEST AIR REPORTS PROFIT OF 1123 MILLION THIRDQUARTER TURNAROUND SIGNALS STRONGER RESULTS AT OTHER BIG AIRLINES BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL NORTHWEST AIRLINES IN ITS FIRST EARNINGS REPORT SINCE NARROWLY AVERTING A BANKRUPTCYLAW FILING THIS SUMMER REPORTED A BIG THIRDQUARTER PROFIT OF 1123 MILLION THE QUARTERLY PROFIT FOR THE NATION'S FOURTHLARGEST AIRLINE ITS FIRST IN TWO YEARS CONTRASTS WITH A NET LOSS OF 197 MILLION A YEAR EARLIER THE TURNAROUND AT NORTHWEST THE FIRST MAJOR AIRLINE TO REPORT THIRDQUARTER RESULTS FORESHADOWS DECIDEDLY STRONGER OPERATING PROFITS EXPECTED FROM OTHER CARRIERS THE AIRLINES BENEFITED IN THE THIRD QUARTER FROM LOWER JETFUEL PRICES SHARPLY REDUCED WORK FORCES AND MOST IMPORTANTLY STABLE PRICING BUT FAR FROM BEING PROFIT POWERHOUSES THE AIRLINES REALLY BENEFITED FROM AN EASIER COMPARISON LAST YEAR'S RAMPANT FARE CUTTING CAME HEAVILY IN THE THIRD QUARTER WRECKING WHAT HAD TRADITIONALLY BEEN THEIR STRONGEST PERIOD FOR NORTHWEST NEW THREEYEAR CONTRACTS PROVIDING WAGE AND BENEFIT CUTS ALSO CONTRIBUTED ABOUT 40 MILLION TO OPERATING PROFIT WHICH JUMPED TO A RECORD 2701 MILLION FROM 61 MILLION A YEAR EARLIER THOSE CONCESSIONS WHICH THE UNIONS AGREED TO IN EXCHANGE FOR AN EQUITY STAKE IN THE COMPANY HELPED NORTHWEST AVERT A FILING FOR BANKRUPTCYCOURT PROTECTION REVENUE ROSE 59 TO 239 BILLION FROM 226 BILLION THE STRONG EARNINGS REFLECT A TWOYEAR COSTCUTTING AND PRODUCTIVITY DRIVE THAT INVOLVED ELIMINATING SOME 4000 POSITIONS AND SHRINKING OR CLOSING UNPROFITABLE HUBS AT THE SAME TIME NORTHWEST A UNIT OF CLOSELY HELD WINGS HOLDINGS INC STEPPED UP PROMOTIONS TO ATTRACT HIGHERPAYING BUSINESS TRAVELERS ANALYSTS WERE HEARTENED BY THE 162 INCREASE IN NORTHWEST'S PASSENGER YIELD A CLOSELY WATCHED MEASURE OF REVENUE RECEIVED FOR EACH SEAT THAT'S A SIGNIFICANT IMPROVEMENT SAID MAX HOLMES AN ANALYST FOR SALOMON BROTHERS WHO TRACKS NORTHWEST'S DEBT I WOULDN'T BREAK OUT THE CHAMPAGNE YET BUT IT'S MOVING IN THE RIGHT DIRECTION NORTHWEST'S YIELD BENEFITED FROM A GAIN IN MARKET SHARE IN THE PACIFIC REGION THE CARRIER'S LARGEST INTERNATIONAL MARKET NORTHWEST ATTRIBUTED THE GAIN WHICH IT WOULDN'T SPECIFY PARTLY TO THE REVAMPING OF ITS TOKYO HUB A MOVE THAT REDUCED TRAVEL TIMES BETWEEN SOUTHEAST ASIA AND THE US THE PACIFIC OFFERS ONE OF THE MOST PROFITABLE AIRLINE MARKETS IN THE WORLD BUT HAS SEEN DEMAND SLIP SINCE 1989 AS JAPAN'S ECONOMY LOST STEAM SAID MICHAEL DERCHIN AN AIRLINE ANALYST WITH NATWEST SECURITIES CORP IN AN INTERVIEW JOHN DASBURG NORTHWEST'S CHIEF EXECUTIVE OFFICER WAS CAUTIOUSLY OPTIMISTIC ABOUT THE JAPANESE MARKET WE HAVE SEEN SOME BOTTOMING OUT IN JAPAN HE SAID IT WOULD BE WAY TOO EARLY TO CALL IT A TURNAROUND BUT HE ADDED THAT NORTHWEST GAINED TRAFFIC DURING THE QUARTER PARTLY BECAUSE THE YEN HAS STRENGTHENED AND THAT MAKES TRAVELING OUT OF JAPAN A MUCH BETTER BUY AS FOR THE NORTH AMERICAN MARKET WHICH ACCOUNTS FOR ABOUT 60 OF NORTHWEST'S BUSINESS MR DASBURG SAID I THINK WE DEFINITELY SEE SEEMINGLY SOME TYPE OF RECOVERY HERE THERE'S AN IMPROVEMENT IN YIELDS AND PRICES ARE HOLDING BETTER THAN THEY HAVE IN THE RECENT PAST HE SAID NORTHWEST'S NORTH AMERICAN OPERATIONS WERE PROFITABLE IN THE QUARTER BUT HE DECLINED TO BE SPECIFIC IN THE FIRST NINE MONTHS OF THE YEAR NORTHWEST'S LOSS NARROWED TO 1222 MILLION FROM 3814 MILLION AS REVENUE GREW 49 TO 650 BILLION FROM 620 BILLION 9310190086 931019 ABREAST OF THE MARKET MAJORITY OF STOCKS FINISH LOWER BUT INDUSTRIAL AVERAGE RISES 1258 BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCK PRICES WERE MOSTLY LOWER AMID FALLING BOND PRICES SNAPBACK BUYING IN ECONOMICALLY SENSITIVE GROUPS SUCH AS AUTO MAKERS AND BASICMATERIAL PRODUCERS AFTER WEAKNESS LAST WEEK LIFTED THE DOW JONES INDUSTRIAL AVERAGE 1258 OR 035 TO 364231 IT ENDED JUST 10 POINTS FROM A RECORD THAT HAS STOOD SINCE AUGUST BUT BROADER MARKET AVERAGES WHICH RALLIED TO BACKTOBACK ALLTIME HIGHS THURSDAY AND FRIDAY LOST GROUND DECLINING ISSUES OUTPACED ADVANCERS BY 1048 TO 1021 NASDAQ STOCKS WERE HIT HARD THE NASDAQ COMPOSITE INDEX TUMBLED 451 OR 057 TO 78291 THE INDEX HAD SET NEW HIGHS EVERY DAY LAST WEEK NEW YORK STOCK EXCHANGE VOLUME MEANWHILE TOPPED 300 MILLION SHARES FOR THE THIRD STRAIGHT SESSION SOME 3294 MILLION SHARES CHANGED HANDS COMPARED WITH 3588 MILLION ON FRIDAY AFTER THE BIG GAINS OF LAST WEEK ANALYSTS SAID THE MARKET WAS POISED FOR SOME PROFITTAKING A MIDMORNING DROP IN BONDS AND BANK STOCKS PROVIDED A TRIGGER FOR THAT SELLING THE TREASURY'S 30YEAR SECURITY DROPPED 7/8 POINT PUSHING ITS YIELD UP TO 585 HELPING SET OFF THE SLIDE WERE RUMORS THAT FINANCIER GEORGE SOROS AND OTHER BIG PLAYERS WERE BETTING ON A BOND MARKET SELLOFF BANK STOCKS WERE RATTLED BY NEWS THAT SEVERAL BANKS HAD CUT THEIR PRIME LENDING RATE TO 55 FROM 6 IF OTHER BANKS FALL IN LINE WITH THE MOVE INDUSTRY PROFIT MARGINS WILL BE SQUEEZED SHARES OF JP MORGAN WHOSE MORGAN GUARANTY TRUST UNIT STARTED THE PRIME RATE ACTION YESTERDAY MORNING SLIPPED 1 5/8 TO 74 1/2 ELSEWHERE CITICORP SKIDDED 1 3/4 TO 35 5/8 ON HEAVY VOLUME OF 65 MILLION SHARES WELLS FARGO DROPPED 7 1/8 TO 116 5/8 BANKAMERICA DECLINED 1 1/2 TO 43 1/8 AND BANK OF NEW YORK LOST 1 1/4 TO 54 AMONG REGIONAL CONCERNS MIDLANTIC LOST 2 1/8 TO 25 1/2 AND MICHIGAN NATIONAL SLIPPED 1 1/4 TO 57 1/2 BOTH ON NASDAQ THE STANDARD & POOR'S 500 STOCK INDEX DROPPED 105 OR 022 TO 46845 AND THE NEW YORK STOCK EXCHANGE COMPOSITE STOCK INDEX FELL 048 OR 018 TO 26000 THOMAS MCMANUS A MARKET ANALYST AT MORGAN STANLEY SAID THE RENEWED STRENGTH IN CYCLICAL ISSUES DIDN'T NECESSARILY SIGNIFY BROAD NEW OPTIMISM ON THE ECONOMY THE GROUP HE SAID HAD BECOME OVERLY DEPRESSED ALTHOUGH THE S&P 500 INDEX JUMPED 2 LAST WEEK THE MORGAN STANLEY CYCLICAL INDEX FELL ABOUT 1 THE DIVERGENCE MIGHT HAVE BEEN ACCENTUATED BY TRADING TIED TO MONTHLY OPTIONS EXPIRATIONS FRIDAY HE SAID AMONG ECONOMICALLY SENSITIVE GAINERS YESTERDAY WERE GENERAL MOTORS WHICH ROSE 1 1/2 TO 46 3/8 MINNESOTA MINING & MANUFACTURING 2 3/4 TO 107 3/8 ALUMINUM CO OF AMERICA 1 1/4 TO 68 AND USXUS STEEL 1 1/8 TO 32 1/4 THE EXPIRATIONS ALSO PROBABLY WERE BEHIND THE SURGE IN VOLUME IN THE PAST SEVERAL SESSIONS SAID JEFF RUBIN AN ANALYST AT BIRINYI ASSOCIATES HE SAID THE HEAVY ACTIVITY DOESN'T NECESSARILY FORESHADOW A BIG MOVE IN EITHER DIRECTION FOR PRICES VOLUME ON THE EXCHANGE HASN'T EXCEEDED 300 MILLION SHARES ON THREE STRAIGHT SESSIONS SINCE FEBRUARYWHEN ACTIVITY REACHED THAT LEVEL SEVEN CONSECUTIVE TIMES NATIONSBANK DROPPED 1 7/8 TO 48 7/8 DESPITE REPORTING BETTERTHANEXPECTED THIRDQUARTER EARNINGS IT EARNED 133 A SHARE AFTER AN EIGHTCENTSASHARE RESTRUCTURING CHARGE ANALYSTS HAD FORECAST NET INCOME OF 124 A SHARE ACCORDING TO IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM CHASE MANHATTAN SANK 1 3/4 TO 34 1/8 EVEN THOUGH THE NEW YORK BANK SAID EARNINGS JUMPED TO 125 A SHARE IN THE THIRD QUARTER FROM 94 CENTS A YEAR EARLIER ANALYSTS HAD EXPECTED A PROFIT OF 97 CENTS IN THE LATEST QUARTER ACCORDING TO IBES STATE STREET BOSTON THOUGH MANAGED A GAIN OF 7/8 TO 38 7/8 IN NASDAQ TRADING THE BANKING COMPANY REPORTED THIRDQUARTER NET INCOME OF 61 CENTS A SHARE COMPARED WITH 55 CENTS A YEAR AGO BROKERAGE FIRM STOCKS SLIPPED MERRILL LYNCH DROPPED 1 3/4 TO 95 7/8 CHARLES SCHWAB 1 TO 35 1/4 MORGAN STANLEY 1 7/8 TO 84 5/8 AND AMERICAN EXPRESS THE PARENT OF LEHMAN BROTHERS 1 3/8 TO 33 1/2 MERCK RALLIED 1 1/4 TO 32 1/4 AFTER THE PHARMACEUTICALS COMPANY SAID ITS EARNINGS CLIMBED TO 62 CENTS A SHARE IN THE THIRD QUARTER SLIGHTLY ABOVE THE 61CENT ESTIMATE OF ANALYSTS SURVEYED BY IBES A YEAR EARLIER MERCK EARNED 55 CENTS OTHER DRUG STOCKS ALSO GAINED BRISTOLMYERS SQUIBB ADDED 1 3/8 TO 58 1/4 GLAXO HOLDINGS 3/8 TO 20 3/8 PFIZER 2 1/4 TO 63 3/4 AND WARNERLAMBERT 1 1/2 TO 71 1/4 CABLE AND COMMUNICATIONS STOCKS LOST GROUND AFTER A WILD RALLY MUCH OF LAST WEEK ON NEWS THAT BELL ATLANTIC PLANS TO ACQUIRE TELECOMMUNICATIONS BELL ATLANTIC LOST 2 TO 65 AND TELECOMMUNICATIONS CLASS A DROPPED 1 TO 31 ON NASDAQ QUESTAR LOST 3 5/8 TO 39 3/8 IT AGREED TO SELL SOME OF ITS BUSINESS TO NEXTEL COMMUNICATIONS IN EXCHANGE FOR SHARES OF THE RUTHERFORD NJ COMPANY NEXTEL ADDED 3/8 TO 50 1/4 ON NASDAQ PARAMOUNT COMMUNICATIONS ADDED 1 1/8 TO 77 QVC NETWORK ARRANGED FOR 1 BILLION IN FINANCING FROM COX ENTERPRISES AND ADVANCE PUBLICATIONS THE MOVE MIGHT HELP QVC'S EFFORTS TO ACQUIRE PARAMOUNT QVC LOST 1/2 TO 57 1/2 ON NASDAQ VIACOM WHICH IS ALSO SEEKING TO BUY PARAMOUNT FELL 1 3/4 TO 62 1/2 ON THE AMERICAN STOCK EXCHANGE AMERICAN DEPOSITARY RECEIPTS OF TELEFONOS DE MEXICO JUMPED 1 1/8 TO 55 SALOMON BROTHERS ADDED THE ISSUE TO A RECOMMENDED LIST CITING OPTIMISM THAT THE NORTH AMERICAN FREE TRADE AGREEMENT WILL BE PASSED BY CONGRESS FISHERPRICE ADDED 3/4 TO 37 7/8 THE TOY MAKER HAD A THIRDQUARTER PROFIT OF 65 CENTS A SHARE UP FROM YEARAGO EARNINGS OF 45 CENTS 9310190085 931019 TECHNOLOGY BRIEF DIGITAL EQUIPMENT CORP TWO TOPOFTHELINE CHIPS ARE NEWEST IN ALPHA FAMILY DIGITAL EQUIPMENT CORP MAYNARD MASS UNVEILED TWO NEW TOPOFTHELINE CHIPS IN ITS ALPHA MICROPROCESSOR FAMILY CALLING THEM THE WORLD'S FASTEST COMMERCIALLY AVAILABLE COMPUTER PROCESSOR CHIPS THE CHIPS LIKELY TO BE USED IN SCIENTIFIC AND ENGINEERING WORKSTATIONS RUN ON STANDARD OPERATING SOFTWARE PRIMARILY WINDOWS NT FROM MICROSOFT CORP THEY OPERATE AT 225 MEGAHERTZ AND 275 MEGAHERTZ A JUMP IN CLOCK SPEED OF MORE THAN 50 FROM EARLIER VERSIONS OF THE ALPHA CHIP BY COMPARISON MOST TOPOFTHELINE MICROPROCESSORS MADE BY THE INDUSTRY LEADER INTEL CORP OPERATE AT UP TO 66 MEGAHERTZ THE LATEST ALPHA CHIPS ARE AIMED AT INTEL'S PENTIUM CHIP THE MIPS CHIPS FROM SILICON GRAPHICS AND THE POWERPC DESIGN FROM INTERNATIONAL BUSINESS MACHINES CORP APPLE COMPUTER INC AND MOTOROLA INC 9310190084 931019 REVIEW & OUTLOOK EDITORIAL ASIDES CAN DEMOCRACY SURVIVE IN AN ERA WHEN PEOPLE ALL OVER THE WORLD ARE STRUGGLING TO OBTAIN SELFGOVERNMENT THE HOUSE OF REPRESENTATIVES TODAY WILL PROBABLY HOLD ANOTHER VOTE ON A MEASURE TO KILL THE NATIONAL ENDOWMENT FOR DEMOCRACY A HOUSESENATE CONFERENCE BILL CONTAINING 35 MILLION FOR NED SHOULD COME TO THE FLOOR WHERE DEMOCRATIC REP PAUL KANJORSKI OF WILKES BARRE PA WILL TRY TO KILL IT AGAIN IT'S ABUNDANTLY OBVIOUS THAT MANY EMERGING NATIONS NEED HELP IN CONSTRUCTING DEMOCRATIC INSTITUTIONS THE US HARDLY GOT IT RIGHT OVERNIGHT AND A VOTE TO SUPPORT THE ENDOWMENT WOULD SHOW THAT THE HOUSE RECOGNIZES THAT FACT 9310190083 931019 LEISURE & ARTS JANICE WHO THE MET'S MYSTERY BENEFACTOR BY AMY GAMERMAN NEW YORK THE LOCAL ART WORLD'S EVENT OF THE SEASON WAS A TRIUMPH OF INTERIOR DECORATION THE METROPOLITAN MUSEUM OF ART'S NEW 19THCENTURY GALLERIES THERE WERE SMITTEN REVIEWS GALA PARTIES AND LOTS OF GLORY FOR THE PEOPLE WHO MADE THE GLAMOROUS SUITE OF BEAUXARTSSTYLE ROOMS POSSIBLE WALTER H ANNENBERG THE PUBLISHING TYCOON/IMPRESSIONIST COLLECTOR IRIS AND B GERALD CANTOR OF RODIN FAME AND JANICE H LEVIN JANICE WHO THE MYSTERY WOMAN PAUSES BEFORE A LARGE SEASCAPE IN THE DINING ROOM OF HER MANHATTAN APARTMENT THIS HERE IS THE CLIFFS OF DIEPPE' SHE SAYS THIS IS MONET MRS LEVIN HAS ALREADY SHOWN ME HER TOULOUSELAUTREC STILL TO COME ON OUR TOUR AROUND THE DINING ROOM'S ROSESILKCOVERED WALLS ARE A VIVID BONNARD ALL THE PROFESSORS THAT TEACH ART TALK ABOUT THIS ONE AND A MONET STILL LIFE OF A VASE OF BLAZING RED ZINNIAS WE HAVEN'T EVEN MADE IT INTO THE LIVING ROOM WHERE MONET'S MAGNIFICENT THE GARDEN AT ARGENTEUIL PRESIDES OVER THE MARBLE MANTLE A STONE'S THROW FROM A PAIR OF SCULPTED DEGAS DANCERS A HUGE RENOIR ONE OF FIVE HANGS OVER A PLASTIC PLANT IN A PORCELAIN BOWL IN THE 26 YEARS SHE HAS LIVED HERE MRS LEVIN HAS TRANSFORMED HER PLUSH APARTMENT INTO A MINIMUSEUM OF FRENCH IMPRESSIONIST ART WITH THE ODD MODIGLIANI AND PICASSO THROWN IN FOR FUN NOW SHE'S MADE HER MARK ON ANOTHER STATELY HOME THE METROPOLITAN MUSEUM OF ART MRS LEVIN'S GIFT OF 3 MILLION HELPED THE MET BUILD ITS 19THCENTURY GALLERIES AND THREE OF HER PAINTINGS BY PISSARRO SISLEY AND DEGAS NOW HANG IN THEM PROMISED GIFTS TO THE MUSEUM SHE'S A VERY GENEROUS LADY WHO UNDERSTOOD THE IMPACT OF WHAT WE'D DO SAYS PHILIPPE DE MONTEBELLO THE MET'S DIRECTOR IN APPRECIATION THE MUSEUM NAMED A ROOM OF COROTS THE JANICE H LEVIN GALLERY THE LADY HERSELF IS AN IMMACULATELY TURNED OUT WOMAN PERHAPS IN HER 70S I DON'T TALK AGE WHO BEARS AN EERIE RESEMBLANCE TO JOAN RIVERS SHE APPEARS FOR LUNCH IN A BUSINESSLIKE REDKNIT JACKET AND GRAY SKIRT AS BEFITS THE PRESIDENT OF LEVIN MANAGEMENT CORP THE NEW JERSEYBASED REAL ESTATE COMPANY FOUNDED BY HER LATE HUSBAND HER SLIM FIGURE IS A TRIBUTE SHE SAYS TO A LOT OF AGGRAVATION AND NOT ENOUGH HOLIDAYS SHE'S GREETED LIKE A CELEBRITY AT THE POSH EAST SIDE RESTAURANT WHERE A WAITER ASSURES HER HE WILL BE DELIGHTED TO SERVE HER A TURKEY CLUB SANDWICH EVEN THOUGH IT ISN'T ON THE MENU WE'RE STARVING SO FAST FAST SHE DECLARES SHE LIGHTS A CIGARETTE FLASHING A MASSIVE GOLD AND DIAMOND RING SHAPED LIKE A CRAB ON HER MANICURED HAND AND THEN MRS LEVIN LAUNCHES INTO THE STORY OF HER LIFE BORN IN NEW YORK RAISED IN NEW YORK MET HIM MARRIED HIM MOVED TO PLAINFIELD NJ THE HIM IN QUESTION IS HER SECOND HUSBAND PHILIP J LEVIN WHO WAS ONE OF THE WEALTHIEST REAL ESTATE DEVELOPERS IN THE COUNTRY THEY MET DOWN THE SHORE AND MARRIED IN 1941 A PIONEER DEVELOPER OF SHOPPING CENTERS MR LEVIN WAS ALSO PRESIDENT OF MADISON SQUARE GARDEN AT THE TIME OF HIS DEATH IN 1971 THE LEVINS LIVED HIGH ON THE HOG WITH A 136ACRE ESTATE ABOVE THE WATCHUNG MOUNTAINS THEIR MANHATTAN PIEDATERRE AND A MONTH OF BACCARAT EVERY SUMMER AT MONTE CARLO THE COUPLE'S FRIEND SAM SALZ THE LATE IMPRESSIONIST ART DEALER ALSO LIKED MONTE CARLO IN AUGUST HE SOLD THE LEVINS THEIR FIRST PAINTING BERTHE MORISOT'S THE GIRL ON THE CHAISE THE ART BUG HAD BITTEN PHILIP LEVIN HE WAS A MAN WHO SAID I WANT TO COLLECT PAINTINGS GET 'EM' MRS LEVIN LAUGHS SLATHERING HER SANDWICH WITH EXTRA MAYONNAISE MR LEVIN LEFT THE DECISIONS TO HIS WIFE WHO SOMETIMES BOUGHT UP IMPRESSIONIST PAINTINGS A BUNCH AT A TIME AFTER MR LEVIN DIED SUDDENLY OF A HEART ATTACK THE ART COLLECTING STOPPED FOR A FEW YEARS MRS LEVIN WHO HAD BEEN VERY MUCH THE HAUSFRAU FOUND HERSELF AT THE HELM OF HIS COMPANY THEN MR SALZ LURED HER BACK INTO THE GAME WITH A RENOIR AND THE MONET STILL LIFE BUT IT TOOK A LOT OF PERSUADING BY ANOTHER FRIEND THE LATE IAN WOODNER THE REAL ESTATE DEVELOPER AND PRESTIGIOUS COLLECTOR BEFORE SHE BEGAN TO SHARE HER ART WITH THE WORLD SO SHE DID LENDING SEVERAL OF HER MORISOTS ANONYMOUSLY TO A 1987 SHOW THAT TRAVELED TO WASHINGTON TEXAS AND MASSACHUSETTS SHE AND MR WOODNER WENT WITH THEM I HAD SUCH A WONDERFUL TIME SHE SAYS THEN MR WOODNER PERSUADED HER TO GO PUBLIC WITH HER LOANS I TRIED IT I SAID FROM THE COLLECTION OF JANICE H LEVIN' AND THEN I REALLY HAD A BALL WORD OF MRS LEVIN'S COLLECTION WAS GETTING AROUND J CARTER BROWN THEN DIRECTOR OF WASHINGTON'S NATIONAL GALLERY CAME TO TEA AFTER MANY LONG CHATS HE PERSUADED MRS LEVIN TO DONATE HER MONET GARDEN PAINTING PERHAPS THE MOST IMPORTANT IN HER COLLECTION IN HONOR OF THE GALLERY'S 50THANNIVERSARY SHOW IN 1991 BUT MRS LEVIN IS A NEW YORK GIRL SHE WANTED SOME OF HER PAINTINGS TO END UP HERE IN HER NEIGHBORHOOD MUSEUM OTHER MUSEUMS HAVE COME COURTING SINCE MOST RECENTLY THE MUSEUM OF MODERN ART WHICH HAS BEEN PROMISED THE MONET SEASCAPE MRS LEVIN PLANS TO FIND MUSEUM BERTHS FOR HER ENTIRE SIZABLE COLLECTION BUT THERE'S A CATCH DURING HER LIFETIME THE MUSEUMS CAN ONLY HAVE THE PAINTINGS 36 DAYS OF THE YEAR MRS LEVIN DOESN'T LIKE TO BE AWAY FROM THEM ANY LONGER THAN THAT AS SHE GAVE A TOUR OF HER COLLECTION IT WAS CLEAR THAT MRS LEVIN HAS A FIRM IDEA OF WHAT SHE LIKES AND WHAT SHE DOESN'T I'M NOT CRAZY ABOUT HIS BATHROOM SCENES WITH THE TUB AND EVERYTHING SHE SAYS PAUSING BEFORE AN INTIMATE VUILLARD SCENE SHOWING A WOMAN IN HER BOUDOIR BUT THIS ONE I LIKE VERY MUCH AND A SMALL PICASSO SCULPTURE A 1904 BRONZE OF A MAN'S HEAD TOPPED BY A JESTER'S CAP SENDS HER INTO RAPTURES I ADORE HIM SHE SAYS STROKING THE CAP DID YOU EVER SEE SUCH A FACE IN YOUR LIFE HE'S GOT SUCH GORGEOUS CHEEKBONES MIXED IN WITH THE PISSARROS VUILLARDS MORISOTS ET AL ARE CHINESE SNUFF BOTTLES 19THCENTURY GILDED CLOCKS AND JUST PLAIN KITSCH SUCH AS THE EMBROIDERED THROW PILLOW THAT URGES GO FIRST CLASS YOUR HEIRS WILL THERE ARE ALSO MANY TOKENS OF THE LEVINS' PHILANTHROPY A FRAMED PHOTOGRAPH OF THE COMMUNITY CENTER THE COUPLE BUILT IN BEERSHEBA ISRAEL AN HONORARY DOCTORATE FROM RUTGERS UNIVERSITY I GAVE A BUSINESS SCHOOL MRS LEVIN EXPLAINS SO I'M DR LEVIN THERE ARE A FEW BLANK SPACES ON THE WALLS THESE DAYS WHERE MRS LEVIN'S SISLEY DEGAS AND PISSARRO BELONG BUT SHE DOESN'T MISS THEM NOT YET ANYWAY THEY'RE IN A WONDERFUL PLACE SHE DECLARES WHIPPING OPEN A SILVER AND GOLD COMPACT AND DISCRETELY REFRESHING HER LIPSTICK THEY'RE HAVING A VERY GOOD TIME AND SO AM I 9310190082 931019 MULTIMEDIA LITTLE HOWIE' A SON OF A PC SEEKS STARDOM BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COULD A PERSONAL COMPUTER SPAWN THE NEXT BARNEY THE DINOSAUR MICHAEL MILKEN FOR ONE IS BETTING THAT IT CAN THE ONETIME JUNKBOND KING CURRENTLY DOING COMMUNITY SERVICE AS PART OF HIS SENTENCE FOR FEDERAL SECURITIESLAW VIOLATIONS IS THROWING HIS WEIGHT AND MONEY BEHIND 7TH LEVEL INC THE LATEST ENTRY IN THE MULTIMEDIA SCRAMBLE SO ARE MERV ADELSON A COFOUNDER OF LORIMAR INC AND A HOST OF MUSIC AND ENTERTAINMENT HEAVYWEIGHTS THE STARTUP COMPANY HOPES THE CENTRAL CHARACTER IN A NEW SERIES OF CDROM SOFTWARE TITLES A TEDDY BEAR NAMED LITTLE HOWIE WILL BECOME THE FIRST MASSMARKET ENTERTAINMENT AND LICENSING STAR TO EMERGE FROM A COMPUTER LITTLE HOWIE NAMED AFTER COMIC HOWIE MANDEL WHO SUPPLIES HIS VOICE ROMPS AROUND AN ANIMATED FARM AS HIS PALS SING HIP NURSERY RHYMES IN THE COMPANY'S FIRST GAME TITLE TUNELAND ALTHOUGH THE PRODUCT WON'T BE AVAILABLE UNTIL JANUARY THE COMPANY ALREADY IS TALKING MOVIE DEALS A CHILDREN'S BOOK EVEN AN ALBUM TIED TO THE COMPUTER GAME A FULLBLOWN MARKETING EFFORT IS EXPECTED TO KICK OFF AT THE COMDEX COMPUTER TRADE SHOW IN LAS VEGAS NEXT MONTH BUT ARE US KIDS READY FOR A DIGITAL HERO IN THE SAME WAY YOU CAN MERCHANDISE BASKETBALL YOU CAN MERCHANDISE A COMPUTER CHARACTER SAYS GEORGE GRAYSON THE DALLAS SOFTWARE WHIZ WHO COFOUNDED THE COMPANY THE WORLD OF INTERACTIVITY IS GOING TO BE HUGE AND THERE ARE TONS OF MATERIAL THAT WILL HAVE TO BE PRODUCED FOR THIS NEW MEDIUM DOUBTERS OF COURSE ABOUND THEY SAY IT'S NAIVE TO THINK THAT CELEBRITY BACKERS AND GLITZY GRAPHICS WILL BRING SUPPORT FROM THE KIDS WHO ARE SUPPOSED TO BUY THE CHARACTER MORE THAN THAT THOUGH THEY QUESTION WHETHER A PERSONAL COMPUTER IS THE RIGHT PLATFORM FROM WHICH TO LAUNCH A PRODUCT WITH NATIONAL APPEAL THE PC IS STILL AN OFFICE PRODUCT SAYS ELLEN BETH VAN BUSKIRK DIRECTOR OF MARKETING AT SEGA OF AMERICA INC IN REDWOOD CITY CALIF THE INSTALLED BASE IS AN INHERENT LIMITATION THOUGH THE NUMBER OF MULTIMEDIA COMPUTERS IS MUSHROOMING THE MARKET IS STILL TINY COMPARED WITH TELEVISION OR FILM ONLY A THIRD OF US HOUSEHOLDS EVEN HAVE COMPUTERS AND ONLY A SLIVER OF THOSE HAVE THE CDROM DRIVES NEEDED TO RUN MULTIMEDIA SOFTWARE NICK ARNETT PRESIDENT OF MULTIMEDIA COMPUTING CORP A CAMPBELL CALIF MARKETRESEARCH COMPANY SAYS THAT WHILE AN ABOVEAVERAGE NEW SEGA GAME MIGHT SELL 500000 UNITS A HOME RUN IN THE CDROM WORLD WILL BE LUCKY TO SCORE 100000 THAT'S PRETTY MISERABLE EVEN COMPARED TO A FILM THAT'S DONE BADLY HE SAYS MR GRAYSON AND HIS BACKERS ASPIRE TO THE KIND OF SUCCESS ENJOYED BY SEGA ENTERPRISES LTD'S SONIC THE HEDGEHOG CHARACTER WHICH IS IMPRINTED ON EVERYTHING FROM CHILDREN'S UMBRELLAS AND LUNCH PAILS TO PAJAMAS MEANTIME NINTENDO CO'S SUPER MARIO BROTHERS HAVE SPAWNED THEIR OWN CARTOON SERIES AND A MOVIE MS VAN BUSKIRK SAYS SEGA'S EXPERIENCE INDICATES THAT MERCHANDISERS AREN'T INTERESTED IN BACKING A CHARACTER UNLESS THEY'RE CONVINCED THAT THE COMPANY HAS THE MUSCLE TO PUSH IT HARD THEY WANT TO KNOW IF YOU'RE GOING TO SUPPORT IT WITH ADVERTISING SHE SAYS WHAT ARE YOU GOING TO DO TO KEEP IT ALIVE JUST BECAUSE YOU'VE GOT A PUZZLE OR A WATCH DOESN'T MEAN YOUR CHARACTER IS GOING TO BE AN INCREDIBLE SELLER SO FAR THE ONLY PCBASED CHARACTER TO GAIN ANY KIND OF BROAD AUDIENCE IS BRODERBUND SOFTWARE INC'S CARMEN SANDIEGO STAR OF THE WHERE IN THE WORLD IS CARMEN SANDIEGO LINE OF PC GAMES IN ADDITION TO TSHIRTS AND VIDEO GAMES THE PUBLIC BROADCASTING SYSTEM RUNS A TV GAME SHOW BASED ON THE PRODUCT AND THE PRODUCTION COMPANY BEHIND THE RECENT PAIR OF BATMAN FILMS HAS AN OPTION ON THE MOVIE RIGHTS STILL THE CHARACTER REPRESENTS ONLY 25 OF BRODERBUND'S TOTAL REVENUE AND HASN'T BECOME A HOUSEHOLD NAME SUCH AS SAY NINTENDO'S MARIO BROTHERS NEVERTHELESS A BRODERBUND SPOKESWOMAN INSISTS THAT THE DAYS OF PC SUPERSTARDOM AREN'T FAR OFF SHE SAYS COMPUTERSOFTWARE TITLES INCREASINGLY ARE ATTRACTING GLITZIER BACKERS AND STARS SUCH AS THE JURASSIC PARK GAME RECENTLY RELEASED BY STEVEN SPIELBERG AND AN INDIANA JONES TITLE PRODUCED BY GEORGE LUCAS'S LUCASARTS ENTERTAINMENT CO WE'RE MOVING OUT OF THE ERA OF THE COMPUTER HOBBYIST THE SPOKESWOMAN SAYS SOFTWARE INCREASINGLY IS BEING TREATED MORE LIKE A MOVIE PRODUCTION THAT IN FACT IS THE VISION MR GRAYSON AND HIS ENTERTAINMENTINDUSTRY TEAM HAVE FOR 7TH LEVEL THE COMPANY FORMED BY MR GRAYSON THE COMPUTER PROGRAMMER AND COFOUNDER OF MICROGRAFX INC AND SCOTT PAGE ONETIME SAXOPHONIST FOR PINK FLOYD IS SEEN AS A MOVIE STUDIO BUILT AROUND SOFTWARE RATHER THAN FILM ULTIMATELY MR PAGE SAYS THE COMPANY COULD HELP DIRECT A NEW INDUSTRY I PLAYED MUSIC ALL MY LIFE HE SAYS I THOUGHT THERE WOULD NEVER BE A DAY WHEN I WOULD THINK OF DOING ANYTHING ELSE NOW THIS STUFF IS ALL I THINK ABOUT HE PAUSES REFLECTING ON HIS NEW TEAM THEN THROWS IN HIS ULTIMATE COMPLIMENT I FEEL LIKE THIS IS IT THIS IS THE BAND I FEEL WE'RE IN THE BEATLES 9310190080 931019 LEISURE & ARTS BOOKSHELF A BIT OF EVERYTHING BY RAYMOND SOKOLOV IN A DARK TIME FOR BOOKS EVEN LITERATURE'S STAUNCHEST FRIENDS ARE JUMPING SHIP FOR EXAMPLE THE LATEST DEWAR'S PROFILE AD DOES NOT LIST ITS UPANDCOMING SUBJECT'S LAST BOOK READ FOR YEARS DEWAR'S HAS ALWAYS LET US KNOW ABOUT THE LITERARY PREFERENCES OF ITS FEATURED YUPPIES WHY THE CHANGE PERHAPS THIS IS MEANT TO SPUR GUESSING GAMES ACROSS THE LAND INSIDIOUSLY DRAWING ATTENTION TO DEWAR'S WHILE INVEIGLING PEOPLE TO COME UP WITH SUGGESTIONS AS TO WHAT TITLES HAVE RECENTLY GRACED THE BEDSIDE TABLE OF THE NEWEST DEWAR'S MAN NICHOLAS GRAHAM THE EXUBERANT CEO AND CHIEF DESIGNER FOR JOE BOXER CORP MAKERS OF BOXER SHORTS AND SLEEPWEAR IN THE AD MR GRAHAM CLAD IN BOLDLY STRIPED AND DOTTED ROBE AND PAJAMAS PRESUMABLY OF HIS OWN DESIGN DOES NOT LOOK BOOKISH BUT HE IS QUOTED AS SAYING THAT HE DRINKS DEWAR'S BECAUSE HE THINKS AT LEAST ONE PART OF MY LIFE SHOULD BE CIVILIZED DOESN'T THIS MAKE YOU THINK THAT MR GRAHAM WOULD REALLY LIKE IT IF MANY PARTS OF HIS LIFE WERE CIVILIZED WELL THAT'S WHAT IT MAKES ME THINK AND A NEW BOOK THAT WOULD HELP FILL THIS BILL IN MY OPINION A BOOK THAT IS REALLY MUCH MORE REFINED THAN ANY MASSMARKET BLENDED SCOTCH IS THE LIBRARY OF AMERICA'S ANTHOLOGY AMERICAN POETRY THE NINETEENTH CENTURY VOLUME ONE FRENEAU TO WHITMAN 1099 PAGES 35 VOLUME TWO MELVILLE TO STICKNEY AMERICAN INDIAN POETRY FOLK SONGS AND SPIRITUALS 1050 PAGES 35 THE LIBRARY OF AMERICA LOA AS YOU WILL RECALL IS AN ONGOING SERIES OF LITERARY CLASSICS OF THIS COUNTRY EDITED BY LEADING SCHOLARS AND PRODUCED IN HANDSOME READABLE EDITIONS APPEALING TO PROFESSIONAL AND LAY READERS ALIKE THE ORIGINAL IDEA FOR THIS ESTIMABLE COLLECTION CAME FROM THE REVERED CRITIC EDMUND WILSON WHO POINTED OUT THAT MANY IMPORTANT AMERICAN AUTHORS WERE EITHER MOSTLY OUT OF PRINT OR AVAILABLE ONLY IN GROSSLY DEFECTIVE EDITIONS HERMAN MELVILLE WAS THE MOST EGREGIOUS CASE OF NEGLECT BEING ERRATICALLY AVAILABLE IN PAPERBACK OR ELSE IN SPECIALIZED LIMITED AND EXPENSIVE TOMES NOW LOA KEEPS EVEN SUCH MINOR MELVILLE FICTION AS REDBURN HANDSOMELY IN PRINT SO FAR HIS POEMS AND HIS EPIC OF THE HOLY LAND CLAREL HAVE NOT BEEN ALLOTTED A SEPARATE PLACE IN THE SERIES INDEED WALT WHITMAN STEPHEN CRANE AND EDGAR ALLAN POE ARE THE ONLY POETS SO HONORED TO DATE PERHAPS MELVILLE'S POETRY ISN'T REALLY WORTH INCLUSION IN ITS ENTIRETY SPECIALISTS ALREADY HAVE ACCESS TO THIS OFTEN CREAKY WORK BUT NOW THE INTERESTED GENERAL READER CAN AT LEAST FIND AMPLE EXTRACTS IN THIS ENORMOUS LOA SELECTION OF WORKS BY THE GREAT THE NEARGREAT AND THE NOT GREAT AT ALL THE EDITOR OF AMERICAN POETRY IS JOHN HOLLANDER OF YALE A DEEPLY LEARNED STUDENT OF POETRY AND A POET OF WIT AND SKILL HIMSELF IT IS HARD TO THINK OF ANYONE BETTER QUALIFIED TO MAKE AUTHORITATIVE CHOICES FROM THE LIKES OF WHITMAN AND CRANE AS WELL AS FROM BENJAMIN PAUL BLOOD 18321919 THE VELVETPOINTED LIPS THAT BEAUTY WOOED/WITH LONG MUTE KISSES IN THE HOODED NIGHT OR THE EQUALLY UFFISH SUBGERMAN CHARLES GODFREY LELAND 18241903 O LIFE MEIN DEAR AT PEST OR VORST/ISH BOOT A VANCY BALL MR HOLLANDER HAS BURROWED THROUGH THE STACKS AND SNARFED A BIT OF EVERYTHING IN THE POETIC LINE NOT EXCLUDING THE DOGGEREL MARK TWAIN WROTE FOR HUCKLEBERRY FINN THE LUGUBRIOUS ODE TO STEPHEN DOWLING BOTS DEC'D THE PERIOD TRANSLATIONS OF INDIAN CHANTS AND HYMNS AND THE FOLK SONG AND SPIRITUAL LYRICS TAKE UP FAR MORE THAN TOKEN SPACE OVER 150 PAGES THE TEMPTATION TO DISMISS THIS DEMOTIC CODA AS A SOP TO POLITICAL CORRECTNESS IS GREAT MR HOLLANDER NOWHERE TRIES TO EXPLAIN HIS PRINCIPLES OF EDITORIAL CHOICE SO WE ARE ENTICED TO SPECULATE THAT HE MAY HAVE FELT PRESSURE TO PAY RESPECT TO POPULAR VERSE AND TO THE POETRY OF NONWHITES BUT THE OVERWHELMING THRUST OF THE ANTHOLOGY IS TOWARD INCLUDING A BIT OF EVERYTHING FROM GELETT BURGESS'S PURPLE COW TO JULIA WARD HOWE'S BATTLEHYMN OF THE REPUBLIC IN SUCH COMPANY RED RIVER VALLEY AND FRANZ BOAS'S TRANSLATION OF THE ESKIMO OXAITOQ'S SONG FIT RIGHT IN APPARENTLY EVERY POEM HAD TO BE PUBLISHED BETWEEN 1800 AND 1900 SINCE MANY AUTHORS WERE BORN BEFORE THOSE DATES OR SURVIVED WELL AFTER THEM IT SEEMS OBVIOUS HOWEVER THAT MR HOLLANDER'S GOAL WAS TO RECREATE THE POETIC MOOD OF THE TIME SETTING THE CHEEK OF TRUE INSPIRATION NEXT TO THE POETASTER'S JOWL THE RESULT IS A SORT OF MUSEE D'ORSAY OF AMERICAN POETRY JUST AS THE PARIS MUSEUM MIXES THE HIGH AND THE LOW UNDER ONE HIGH ROOF TO REPRESENT THE ART WORLD OF 19THCENTURY FRANCE SO HERE MR HOLLANDER LEADS US TO LONGFELLOW PAST WILLIAM GILMORE SIMMS THIS POSTMODERN ALLIN STRATEGY NEVER REMOTELY THREATENS THE CANON WE WERE GIVEN IN SCHOOL MR HOLLANDER'S SELECTION MAY ADD A FEW NAMES TO THAT PANTHEON BUT ITS REAL EFFECT IS TO GLORIFY THE OLD MASTERS BY JUXTAPOSING THEM WITH LESSER BARDS NEVER HAS EMILY DICKINSON SHONE FORTH SO CLEARLY AS THE FOREMOST AMERICAN VOICE OF HER TIME OR MAYBE ANY TIME 9310190079 931019 BUSINESS BRIEF TEMPLEINLAND INC NET INCOME PLUNGES 70 DESPITE BOOST IN REVENUE CONTINUING AN EARNINGS DECLINE THAT BEGAN EARLIER THIS YEAR TEMPLEINLAND INC SAID NET INCOME FOR ITS THIRD QUARTER PLUNGED 70 TO 114 MILLION OR 21 CENTS A SHARE FROM 392 MILLION OR 71 CENTS A SHARE A YEAR AGO EVEN AS REVENUE ROSE TO 6809 MILLION FROM 6722 MILLION THE DIBOLL TEXAS PAPER AND FINANCIAL SERVICES CONCERN SAID THAT AS EARLIER THE DROP IN EARNINGS REFLECTED EXCESSIVE INVENTORIES AND LOWER PRICES FOR CONTAINERBOARD AND CORRUGATED BOXES THE COMPANY SAID IT CURTAILED PRODUCTION AT SOME OF ITS CONTAINERBOARD MILLS DURING THE QUARTER TO KEEP INVENTORIES FROM INCREASING FURTHER IT SAID THE COSTS OF DOWN TIME FROM TAKING ABOUT 23000 TONS OF CONTAINERBOARD OUT OF PRODUCTION DURING THE QUARTER COMBINED WITH WEAKER PROFIT MARGINS SLICED CONTAINER AND CONTAINERBOARD PRETAX PROFIT FOR THE QUARTER TO 26 MILLION FROM 291 MILLION A YEAR AGO THE COMPANY'S SHARES CLOSED YESTERDAY AT 3975 UP 150 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9310190078 931019 CREDIT MARKETS SECURITIES FIRMS SET BAN ON POLITICAL GIFTS BY WALL STREET JOURNAL REPORTERS CHRISTI HARLAN AND JOHN CONNOR IN WASHINGTON AND THOMAS T VOGEL JR IN NEW YORK SEVENTEEN MAJOR SECURITIES FIRMS AGREED TO STOP MAKING POLITICAL CONTRIBUTIONS THAT GIVE THE APPEARANCE THAT THEY ARE BUYING BONDUNDERWRITING BUSINESS FROM STATE AND LOCAL OFFICIALS SOME OF THE FIRMS ALREADY HAD MADE KNOWN THEIR INTENTIONS TO CURB CAMPAIGN CONTRIBUTIONS BUT THE AGREEMENT ANNOUNCED YESTERDAY TOOK ON ADDED WEIGHT WITH THE SIGNATURES OF THE 17 FIRMS AND THE ENDORSEMENT OF SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT I BELIEVE THE EXISTENCE OF THIS AGREEMENT SHOULD HAVE A BROAD EFFECT CAUSING PARTICIPANTS IN THE MUNICIPALBOND MARKET TO CONSTRUCTIVELY REEVALUATE THE WAY THEY CONDUCT BUSINESS AND STRUCTURE RELATIONSHIPS WITH ISSUERS MR LEVITT SAID IN A STATEMENT THE SEC CHAIRMAN SAID HE EXPECTS EACH FIRM TO DRAFT SPECIFIC POLICIES FOR EMPLOYEES WITHIN THE NEXT 60 DAYS YESTERDAY'S AGREEMENT IS VOLUNTARY AND THERE ARE SIGNS THAT SOME REGIONAL UNDERWRITERS MIGHT NOT HONOR THE PACT LIGHT WEAPONS AS THE RULES NOW STAND MUNICIPALBOND REGULATORS WIELD ONLY LIGHT WEAPONS FOR STOPPING IMPROPER POLITICAL CONTRIBUTIONS BY BOND UNDERWRITERS BUT FOR THE PAST THREE MONTHS THE INDUSTRY HAS BEEN EDGING TOWARD TIGHTER CONTROLS IN AUGUST THE CHIEF RULEMAKING BODY FOR THE BUSINESS THE MUNICIPAL SECURITIES RULEMAKING BOARD PROPOSED BANNING IMPROPER CONTRIBUTIONS AND REQUIRING FIRMS TO DISCLOSE WHAT THEY HAD DONATED TO POLITICIANS WITH WHOM THEY DO BUSINESS A FINAL DRAFT OF THAT RULE IS EXPECTED IN NOVEMBER AND WILL REQUIRE SEC APPROVAL UNLIKE THE VOLUNTARY BAN ANNOUNCED YESTERDAY UNDERWRITERS WOULD HAVE NO CHOICE BUT TO COMPLY WITH THE NEW MSRB RULE IN THE AGREEMENT ANNOUNCED YESTERDAY THE 17 FIRMS SAID THEIR POLITICALACTION COMMITTEES SENIOR MANAGEMENT AND MUNICIPALFINANCE SPECIALISTS WILL BE PROHIBITED FROM MAKING POLITICAL CONTRIBUTIONS AT THE STATE AND LOCAL LEVELS AND FROM SOLICITING USING OR CAUSING OTHER PERSONS OR ENTITIES TO MAKE SUCH CONTRIBUTIONS OTHER EMPLOYEES OF THE FIRMS WOULD BE ALLOWED TO CONTRIBUTE TO POLITICAL CAMPAIGNS PROVIDED THE DONATIONS AREN'T INTENDED TO INFLUENCE THE AWARDING OF BUSINESS THE AGREEMENT DEALS ONLY WITH STATE AND LOCAL POLITICIANS BECAUSE THEY HOLD THE MOST SWAY OVER THE 12 TRILLION MUNICIPALBOND MARKET SIXTEEN OF THE FIRMS THAT PARTICIPATED IN THE AGREEMENT UNDERWRITE ABOUT 75 OF THE BONDS OUTSTANDING ANOTHER FIRM SALOMON BROTHERS INC BOWED OUT OF THE MUNICIPALBOND BUSINESS SEVERAL YEARS AGO BUT SIGNED THE AGREEMENT ANYWAY A SPOKESMAN SAID JUST TWO WEEKS AGO THE PUBLIC SECURITIES ASSOCIATION AN INDUSTRY TRADE GROUP PROPOSED A TEMPORARY MORATORIUM ON POLITICAL CONTRIBUTIONS YESTERDAY'S AGREEMENT ON A PERMANENT VOLUNTARY BAN IS ESSENTIALLY AN EXPANSION OF THE PREVIOUS PSA RECOMMENDATION SO FAR THE PSA'S PROPOSAL HAS RECEIVED TEPID SUPPORT FROM REGIONAL UNDERWRITERS SUGGESTING THAT THE AGREEMENT MIGHT NOT GET INDUSTRYWIDE BACKING OF 23 REGIONAL FIRMS CONTACTED BY THIS NEWSPAPER DURING THE PAST TWO WEEKS JUST SIX SAID THEY SUPPORTED THE TEMPORARY PSA BAN WITH NO COMPLAINTS OR RESERVATIONS ANOTHER EIGHT FIRMS SUPPORTED THE BAN WITH SOME RESERVATIONS THE REMAINING NINE FIRMS WERE UNDECIDED OR AGAINST THE TEMPORARY BAN MANY THINK A PERMANENT VOLUNTARY BAN WON'T WORK SOME OF THESE SMALLER PLAYERS THINK LARGE WALL STREET FIRMS WILL FIND WAYS TO GET AROUND A VOLUNTARY BAN OTHERS SAY THE TOP FIRMS COULD USE THE BAN AS A WAY OF LOCKING IN THEIR DOMINANT POSITION BECAUSE IT WILL BE MORE DIFFICULT FOR AGGRESSIVE REGIONAL FIRMS TO GAIN NEW BUSINESS BY GIVING TO CANDIDATES THE MUNICIPALBOND UNDERWRITING BUSINESS IS DOMINATED BY A HANDFUL OF FIRMS THE TOP 10 FIRMS WERE LEAD UNDERWRITERS FOR MORE THAN 60 OF ALL MUNI DEALS DURING THE FIRST NINE MONTHS OF 1993 ACCORDING TO SECURITIES DATA CO THESE MAJOR FIRMS ARE CONCERNED THAT SMALLER OUTFITS ARE NOT JOINING THE TEMPORARY BAN AND THAT THEY WON'T SUPPORT THE PROPOSED PERMANENT VOLUNTARY BAN IF THESE SMALLER FIRMS DON'T FULLY SUPPORT THE EFFORT THERE WILL BE NO END TO THE POLITICAL CONTRIBUTION PROBLEM THE MAJOR UNDERWRITERS CONTEND WE'VE ALL TALKED ABOUT THE PSA'S VOLUNTARY BAN SAID ANITA MITCHELL SENIOR VICE PRESIDENT OF NEW BUSINESS DEVELOPMENT AND GOVERNMENT RELATIONS AT SMITH MITCHELL INVESTMENT GROUP INC IN WEST PALM BEACH FLA WHICH SUPPORTS THE TEMPORARY BAN SHE SAID REGIONAL UNDERWRITERS WANT TO KNOW IF IN FACT THEY'RE REALLY GOING TO ENFORCE IT SHE RECKONED THAT WITHOUT THE THREAT OF ENFORCEMENT A VOLUNTARY BAN WILL DO LITTLE TO SOLVE THE PROBLEMS I'VE HEARD PEOPLE AT UNDERWRITING FIRMS SAY THAT SINCE IT'S NOT A LAW YET IT IS STUPID NOT TO WRITE A CHECK FOR A FUNDRAISER SHE SAID WALTER CHAMBERS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF OHIO CO SAID THE PRACTICE OF MAKING POLITICAL PAYMENTS TO WIN BUSINESS HAS GROWN TO AN UNBELIEVABLE DEGREE HE SAID SUCH PAYMENTS SHOULD BE STOPPED BY WHATEVER MEANS NECESSARY BUT HIS FIRM HASN'T ADOPTED THE PSA'S MORATORIUM RECOMMENDATION THERE IS A LOT OF CYNICISM AND SELFSERVING STRATEGY BY THE BIG FIRMS IN TERMS OF THIS PLAN ON POLITICAL CONTRIBUTIONS SAID MARK D SCHWARTZ MUNICIPALBOND LAWYER AND FORMER BANKER AT PRUDENTIAL SECURITIES INC A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA THE BAN MAY HELP FREEZE THE RANKINGS SO THAT THE GUYS IN THE TOP 10 WOULD KEEP THEIR CURRENT MARKET SHARE HE ADDED IN REGIONAL FIRMS THERE IS A LOT OF RESENTMENT TOWARD LARGE FIRMS COMING IN TO DO THE BIG DEALS MR SCHWARTZ ALSO NOTED THAT THERE ARE WAYS THAT LARGE FIRMS CAN MAKE POLITICAL CONTRIBUTIONS THAT SMALL FIRMS CAN'T FOR INSTANCE LARGE UNDERWRITERS COULD ENCOURAGE CORPORATE CLIENTS TO DONATE TO FAVORED POLITICIANS OR THEY COULD PASS ON DONATIONS THROUGH POLITICAL CONSULTANTS MR SCHWARTZ SAID A FIRM COULD GIVE A BIG FEE TO A CONSULTANT TO HELP DRUM UP BUSINESS AND THEN PURPOSELY NOT ASK THE CONSULTANT HOW THE MONEY WAS SPENT THE ISSUE OF POLITICAL CONSULTANTS ALSO CONCERNS SOME OF THE TOP 10 FIRMS ELAINE LA ROCHE MANAGING DIRECTOR OF PUBLIC FINANCE AT MORGAN STANLEY & CO IS WORRIED THAT FIRMS WILL USE CONSULTANTS OR LOCAL LOBBYISTS TO SKIRT CONTRIBUTION BANS MORGAN STANLEY HAS A POLICY OF NOT USING THESE CONSULTANTS SHE SAID IN ANNOUNCING YESTERDAY'S AGREEMENT THE SEC'S MR LEVITT MADE IT CLEAR THAT HE DOESN'T THINK THE VOLUNTARY MORATORIUM OR EVEN THE MSRB RULE WILL WEED OUT ALL IMPROPER CONTRIBUTIONS I AM CONCERNED THAT THE USE OF CONSULTANTS AFFILIATES AND EMPLOYEES TO AVOID THE PROHIBITIONS OF THIS POLICY AS WELL AS OTHER RELATED PRACTICES WHICH IMPROPERLY INFLUENCE MUNICIPALFINANCE DECISIONMAKING MAY NOT BE FULLY ADDRESSED BY THE STATEMENT OF PRINCIPLE WE HAVE HERE HE SAID ALTHOUGH THE AGREEMENT STATES THAT IT SHOULD BE VIEWED IN THE BROADEST OF TERMS AND NO FIRM SHOULD DO INDIRECTLY WHAT IT HAS AGREED NOT TO DO DIRECTLY THE PACT DOESN'T COVER BOND COUNSEL FINANCIAL ADVISERS AND CONSULTANTS WHO OPERATE OUTSIDE THE OVERSIGHT OF THE MSRB AND THE SEC AS PART OF ITS BROAD LOOK AT THE MUNICIPALBOND BUSINESS THE SEC HAS ASKED UNDERWRITING FIRMS TO PROVIDE THE AGENCY WITH AMONG OTHER THINGS THE AMOUNT OF DONATIONS THEY HAVE MADE TO POLITICIANS MR LEVITT MENTIONED THAT THE AGENCY'S ENFORCEMENT DIVISION IS PURSUING A NUMBER OF INQUIRIES INVOLVING QUESTIONABLE ACTIVITIES AFFECTING THIS MARKET HE DECLINED TO BE MORE SPECIFIC REPORTS THAT TWO BIG HEDGE FUNDS TURNED BEARISH ON BONDS TRIGGERED A WAVE OF PROFITTAKING BY INVESTORS PUSHING BOND PRICES SHARPLY LOWER THE REPORT WHICH APPEARED IN YESTERDAY'S EDITION OF USA TODAY SAID THAT SOROS FUND MANAGEMENT RUN BY GEORGE SOROS AND STEINHARDT & PARTNERS THE MULTIBILLIONDOLLAR FUND LED BY MICHAEL STEINHARDT TOOK ON SIZABLE SHORT POSITIONS IN A SHORT SALE INVESTORS SELL BORROWED SECURITIES AND LATER SEEK TO MAKE A PROFIT BY REPLACING WHAT WAS BORROWED WITH CHEAPER SECURITIES ESSENTIALLY THESE DEALERS ARE BETTING THAT PRICES WILL FALL NO SOURCES WERE CITED IN THE USA TODAY ARTICLE A SPOKESMAN FOR SOROS DECLINED TO COMMENT WHILE A SPOKESMAN FOR STEINHARDT & PARTNERS SAID THE FIRM NEVER COMMENTS ON ITS POSITIONS NEVERTHELESS INVESTORS REACTED SWIFTLY TO THE UNCONFIRMED REPORT IN TRADING THE BOND MARKET'S BELLWETHER SECURITY THE 30YEAR TREASURY BOND ENDED 7/8 POINT LOWER A DECLINE OF 875 FOR A BOND WITH A 1000 FACE AMOUNT THE PRICE WAS QUOTED AT 105 17/32 TO YIELD 585 COMPARED WITH 106 13/32 TO YIELD 579 LATE FRIDAY THE PRICE OF THE LATEST 10YEAR TREASURY NOTE ENDED AT 103 22/32 TO YIELD 525 COMPARED WITH 104 10/32 TO YIELD 517 SOME ANALYSTS PLAYED DOWN THE IMPORTANCE OF THE USA TODAY ARTICLE AND SAID THAT BONDS WERE RIPE FOR PROFITTAKING AFTER SOLID GAINS LAST WEEK I WAS A LITTLE SURPRISED BY THE SHARPNESS OF THE PRICE FALLS BUT MOST OF IT WAS PROFITTAKING FROM FRIDAY'S RALLY SAID FRANK J RICCARDI SENIOR VICE PRESIDENT AND DIRECTOR OF FIXEDINCOME INVESTMENTS FOR SOCIETY ASSET MANAGEMENT INC IN CLEVELAND IF THE SOROS FUND IS IN FACT BEARISH ON BONDS IT WON'T BE THE FIRST TIME THIS YEAR THE FUND HAS TAKEN SUCH A POSITION IN APRIL IT WAS WIDELY REPORTED THAT THE SOROS FUND HAD PLACED BEARISH BETS ON BONDS AMID SIGNS THAT INFLATION APPEARED TO BE ACCELERATING HOW SUCCESSFUL WAS THAT CALL NOT VERY AT THAT TIME THE LONG BOND WAS BOUNCING BETWEEN 675 AND 7 AND ALTHOUGH YIELDS WENT BRIEFLY HIGHER IN MIDMAY THE MARKET SOON RENEWED ITS RECORDBREAKING RALLY THAT HAS TAKEN YIELDS DOWN TO FRIDAY'S LOW OF 579 THE LOWEST SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE 30YEAR BOND IN 1977 HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED OCT 21 THE 13WEEK BILLS MATURE JAN 20 1991 AND THE 26WEEK BILLS MATURE APRIL 21 1991 MUNICIPAL BONDS WERE UNDERCUT BY PROFITTAKING AND ACTIVELY TRADED ISSUES WERE GENERALLY 1/4 TO 1/2 POINT LOWER CALIFORNIA'S 475 OF 2018 GENERAL OBLIGATION BONDS FINISHED 1/4 WEAKER AT 94 1/8 TO 94 1/2 YIELDING 514 IN TRADING OF ARIZONA ISSUES THE SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT & POWER DISTRICT'S 500 OF 2013 ELECTRIC SYSTEM REFUNDING BONDS CLOSED 1/4 LOWER AT 98 TO 98 1/4 YIELDING 514 ISSUERS EXPECTED TO TAP THE MARKET NEXT SESSION INCLUDE CHICAGO WISCONSIN DETROIT AND CALIFORNIA'S SAN JOAQUIN COUNTY CORPORATEBOND ISSUANCE WAS SLUGGISH AS ONLY 830 MILLION OF NEW DEBT CAME TO MARKET AMONG EARLIER ISSUERS PHILLIPS PETROLEUM CO OFFERED 250 MILLION OF 30YEAR BONDS THAT ARE NONCALLABLE FOR 10 YEARS LATER IN THE SESSION PENNSYLVANIA POWER & LIGHT CO ISSUED 150 MILLION USING THE SAME STRUCTURE MEANWHILE CIT GROUP HOLDINGS INC A UNIT OF CHEMICAL BANKING CORP AND DAIICHI KANGYO BANK SOLD 15YEAR DEBT LIFTING OCTOBER'S TALLY OF FINANCIALCOMPANY 15YEAR NONCALLABLE ISSUES ABOVE 1 BILLION ACCORDING TO SECURITIES DATA CO SECONDARY TRADING WAS QUIET INVESTMENTGRADE BOND PRICES FELL IN STEP WITH THOSE OF TREASURYS JUNK BONDS ENDED FLAT TO DOWN 1/8 9310190077 931019 MARKETING & MEDIA ADVERTISING NEW QVC ADS TOUT RELIABILITY OF NETWORK OVER RETAIL STORES BY PATRICK REILLY QVC NETWORK INC IS SHOPPING FOR CUSTOMERS WITH SOME STINGING ADS THAT DEPICT THE HASSLES AND POOR SERVICE IN MANY RETAIL STORES QVC ONE OF THE TWO DOMINANT HOMESHOPPING CHANNELS IS TRYING TO ESTABLISH ITSELF NOT ONLY AS A CONVENIENT BUYING SERVICE BUT ALSO AS A RELIABLE SOURCE OF INFORMATION FOR IMPORTANT PURCHASES IN SHORT QVC'S MESSAGE IS THAT IT CAN DO WHAT MANY STORES HAVE FORGOTTEN HOW TO DO IN THE CAMPAIGN'S FIRST SPOT A BEFUDDLED ELECTRONICS STORE CLERK IS NO HELP AT ALL TO A SHOPPER IN THE MARKET FOR A CAMCORDER I JUST STARTED THIS WEEK I DON'T KNOW ABOUT THIS STUFF THE SALESMAN SAYS WOULD YOU LIKE ME TO READ YOU THE MANUAL THE AD CONCLUDES THE SALESMAN'S AN IDIOT AND URGES VIEWERS TO GO HOME WATCH QVC THAT'S A MUCH HARDERHITTING MESSAGE THAN TV COMMERCIALS FOR RIVAL HOME SHOPPING NETWORK INC THOSE ADS MAINLY PROMOTE BARGAIN PRICES THE NEW QVC ADS ALSO ADDRESS A PERSISTENT PROBLEM FACING THE BURGEONING 25 BILLION TV HOME SHOPPING INDUSTRY HOW DO VIEWERS KNOW WHEN TO TUNE IN FOR THE PRODUCTS THEY WANT THE ELECTRONICS COMMERCIAL FOR EXAMPLE CUED VIEWERS TO WATCH AT A SPECIFIC HOUR LAST SUNDAY FOR A NEW SONY ELECTRONICS SHOW FUTURE COMMERCIALS FOCUS ON WHEN CONSUMERS CAN SHOP FROM THEIR COUCH FOR WOMEN'S APPAREL KITCHENWARE AND HOLIDAY GIFTS QVC WHICH STARTED THE CAMPAIGN LAST WEEK ON CABLE SYSTEMS AROUND THE COUNTRY DECLINED TO DISCLOSE THE AD BUDGET HOWEVER NO BIG AGENCY GOT THE CALL TO MAKE THE ADS INSTEAD QVC LAST SUMMER HIRED FRED SIEGEL A FORMER EXECUTIVE CREATIVE DIRECTOR AT KETCHUM ADVERTISING/PHILADELPHIA AS QVC'S NEW SENIOR VICE PRESIDENT OF MARKETING HE CREATED THE ADS ALONG WITH FREELANCE HELP OF COURSE QVC HAS SOME BIGGER THINGS ON ITS PLATE THESE DAYS AS IT TRIES TO MAKE A 97 BILLION ACQUISITION OF PARAMOUNT COMMUNICATIONS INC BUT THE AD CAMPAIGN IS A CRUCIAL PART OF QVC'S STRATEGY UNDER THE GUIDING HAND OF EXHOLLYWOOD CHIEFTAIN BARRY DILLER WITH HIS CONNECTIONS TO STARS AND STAR DESIGNERS MR DILLER AS CHAIRMAN AND CHIEF EXECUTIVE OF QVC IS SHAKING THE STEREOTYPE OF SHOPPING CHANNELS AS SHRILL HAWKERS OF JUNK JEWELRY AND POLYESTER GARB BESIDES PLUGGING BRANDNAME PRODUCTS AND BIGNAME DESIGNERS INTO QVC TIME SLOTS THE NETWORK PLANS TO LAUNCH THE Q2 SHOPPING CHANNEL NEXT YEAR TO MARKET GOODS AIMED AT VIEWERS' HOBBIES SUCH AS GARDENING COOKING AND MOUNTAIN BIKING A TRADE PRINT CAMPAIGN FOR Q2 FROM FRANKFURT GIPS BALKIND ADVERTISING BEGAN MONDAY WITH A SLOGAN NOT GEARED FOR SOFA SPUDS LEARN SEE BUY DO QVC LURED SAKS FIFTH AVENUE TO SELL GOODS ON THE NETWORK AS WELL AS MR DILLER'S DESIGNER FRIEND DIANE VON FURSTENBERG THE AIM IS TO ENTICE MANY POTENTIAL CONVERTS QVC SAYS ONLY 8 OF THE 47 MILLION HOUSEHOLDS THAT RECEIVE THE NETWORK HAVE ORDERED PRODUCTS FROM IT BUT EXPERTS WHO STUDY THE HOME SHOPPING PHENOMENON SAY CONVERTS WON'T COME EASY IT'S GOING TO BE DIFFICULT TO CONVERT PEOPLE INTO DESTINATION SHOPPERS OR PLANNED PURCHASERS RIGHT NOW HOME SHOPPING IS IMPULSEDRIVEN SAYS KIM HENDRIX A SENIOR MANAGER AT MANAGEMENT HORIZONS A RETAILCONSULTING UNIT OF PRICE WATERHOUSE SHE QUESTIONS WHETHER MANY VIEWERS EVEN IF THEY ARE LED TO THE PROGRAM THEY WANT WILL BE WILLING AND ABLE TO WADE THROUGH A FULL HOUR TO FIND THE PRODUCT THEY WANT NONETHELESS MS HENDRIX PRAISES THE NEW QVC AD CAMPAIGN IT IS PROMOTING JUST WHAT THEY ARE WHICH THEY HAVEN'T ALWAYS DONE SHE SAYS THEY WILL GET A LOT OF BANG ON THIS ONE QVC ALREADY SEEMS TO BE GATHERING STEAM THE COMPANY'S SALES HAVE GROWN TO 12 BILLION IN JUST SIX YEARS AND QVC SAYS IT GETS ABOUT 100000 NEW SHOPPERS A MONTH OF WHICH MORE THAN 60 BECOME RETURN SHOPPERS STILL QVC KNOWS ONE OF THE BARRIERS TO MAKING NEW SHOPPERS OUT OF VIEWERS IS PLUGGING THEM INTO WHAT THEY WANT OR WHAT THEY MAY THINK THEY WANT SO IN CONNECTION WITH THE AD CAMPAIGN QVC WILL UNVEIL AN IMPROVED MONTHLY PROGRAM GUIDE NEXT MONTH THE GUIDE WILL BE MORE INVOLVING MORE INFORMATIVE MORE THAN JUST A GRID QVC'S MR SIEGEL SAYS WHILE QVC EXECUTIVES ARE BEING CAGEY ABOUT IT THEY ARE CONSIDERING NEW WAYS OF DISTRIBUTING THE GUIDE TO MORE POTENTIAL VIEWERS EACH OF THE NEW COMMERCIALS CARRIES AN 800 NUMBER THAT VIEWERS CAN CALL FOR GUIDES QVC EXPECTS THE FOURTH SPOT IN THE NEW AD CAMPAIGN TO RING TRUE WITH FRUSTRATED HOLIDAY SHOPPERS A STAGED CROWD SCENE IN A STORE DURING THE CHRISTMAS RUSH IT SHOWS SOME OF THE HASSLES OF SHOPPING AT THAT TIME MR SIEGEL SAYS I THINK OF THESE AS LIGHTHEARTED VIEWS OF PROBLEMS CONSUMERS FACE IT'S SIMPLY WHAT PEOPLE ARE CONFRONTED WITH AD AGENCY EXECUTIVE CHARLOTTE BEERS IS SCHEDULED TO TELL A GATHERING OF NATIONAL ADVERTISERS TODAY THAT THE FUTURE ROLE OF AD AGENCIES IS BRAND STEWARDSHIP THAT MAY SOUND OUTDATED IN THIS ERA OF BRAND EROSION IN FAVOR OF LESS EXPENSIVE PRIVATELABEL GOODS BUT MS BEERS CHAIRWOMAN AND CHIEF EXECUTIVE OF WPP GROUP'S OGILVY & MATHER FIRMLY BELIEVES THAT MADISON AVENUE IS FLOODED WITH BRAND MISMANAGEMENT AND THE ANSWER TO THAT COSTLY DILEMMA IS THE TIMEHONORED AND RARELY PRACTICED EXERCISE OF CAREFULLY GUIDING A BRAND'S IMAGE SHE IS SCHEDULED TO DELIVER HER REMARKS THIS MORNING ON THE FINAL DAY OF THE 48TH ANNUAL CONVENTION OF THE ASSOCIATION OF NATIONAL ADVERTISERS IN NAPLES FLA LAST YEAR MS BEERS DEVELOPED AN AUDIT OF SORTS FOR CLIENTS TITLED BRANDPRINT WHICH SHE SAID ATTEMPTS TO CAPTURE THE ROCKBOTTOM TRUTH ABOUT A BRAND BRANDPRINT GOES BEYOND THE SUPERFICIAL ATTRIBUTES OF A BRAND FOR EXAMPLE AT RYDER TRUCK RENTAL AN OGILVY CLIENT SHE SAID THE COMPANY'S SHINY YELLOW VEHICLES APPARENTLY MAKE DRIVERS FEEL GOOD MS BEERS SAYS OGILVY IS DEVELOPING A BRANDPRINT FOR AMERICAN EXPRESS AND SOME SEAGRAM BRANDS PUBLICIS SA FRANCE'S SECONDLARGEST AD AGENCY SAID IT HAS AGREED TO ACQUIRE GROUPE FCA THE FOURTHLARGEST FRENCH ADVERTISING NETWORK FOR BETWEEN 150 MILLION AND 170 MILLION FRANCS US263 MILLION TO 298 MILLION THE ACQUISITION GIVES PUBLICIS WITH BILLINGS OF ABOUT 20 BILLION FRANCS A SECOND INTERNATIONAL NETWORK AND STRENGTHENS ITS POSITION WITH TWO INTERNATIONAL PACKAGEDGOODS CLIENTS L'OREAL AND NESTLE SAID MAURICE LEVY PUBLICIS CHAIRMAN IT ALSO BOLSTERS PUBLICIS'S US PRESENCE GROUPE FCA A CLOSELY HELD AGENCY WITH BILLINGS OF ABOUT 20 BILLION FRANCS OWNS THE BLOOM FCA AGENCY WITH ESTIMATED BILLINGS OF ABOUT 220 MILLION AND OFFICES IN DALLAS AND NEW YORK MR LEVY SAID FCA WILL BE PART OF PUBLICIS FCB COMMUNICATIONS PUBLICIS'S EUROPEAN JOINT VENTURE WITH THE CHICAGO AGENCY FOOTE CONE & BELDING COMMUNICATIONS FCB'S FINANCIAL ROLE IN THE ACQUISITION IF ANY COULDN'T BE DETERMINED ACCOUNTS DELTA AIR LINES INC ATLANTA MOVED 4 MILLION IN ADVERTISING FOR THE DELTA SHUTTLE FROM MESSNER VETERE BERGER MCNAMEE SCHMETTERER NEW YORK TO OMNICOM GROUP'S BBDO NEW YORK WHICH HANDLES THE REST OF DELTA'S ESTIMATED 103 MILLION ACCOUNT FROM OFFICES IN ATLANTA AND LONDON OLYMPIC MASCOT THE ATLANTA COMMITTEE FOR THE OLYMPIC GAMES NAMED THE CARTOON MASCOT FOR THE 1996 GAMES IZZY THAT'S RIGHT IZZY ATLANTAAREA CHILDREN MADE THE FINAL SELECTION THE COMMITTEE SAID THE BLUE UNISEX BLOB WITH BULGING EYEBALLS ORIGINALLY KNOWN AS WHATIZIT IS SET TO APPEAR NEXT MONTH IN MACY'S THANKSGIVING DAY PARADE 9310190076 931019 BUSINESS BRIEF NATIONAL STEEL CORP MINNESOTA PELLET OPERATIONS IDLED AMID LABOR TROUBLES NATIONAL STEEL PELLET CO A UNIT OF NATIONAL STEEL CORP SAID IT PLANS TO IDLE ITS IRON ORE MINING AND PELLETPRODUCTION OPERATIONS IN KEEWATIN MINN THE FACILITY HAS BEEN CLOSED SINCE AUG 1 DUE TO A STRIKE BY THE UNITED STEELWORKERS OF AMERICA THE UNIT EMPLOYS 710 PEOPLE INCLUDING SOME 600 HOURLY WORKERS A NATIONAL STEEL SPOKESMAN SAID ALL BUT A FEW SALARIED EMPLOYEES WOULD BE LAID OFF IMMEDIATELY HE SAID THE FUTURE OF THE OPERATION DEPENDS ON WHETHER THE SHUTDOWN IS MADE PERMANENT THE CLOSURE IS NOW INDEFINITE NATIONAL STEEL THE NATION'S FOURTHLARGEST STEELMAKER SAID IT WAS IDLING THE OPERATION BECAUSE IT WAS UNABLE TO REACH A NEW CONTRACT AGREEMENT WITH THE STEELWORKERS BEFORE AN OCT 15 DEADLINE LAST WEEK NATIONAL STEEL POSTED A THIRDQUARTER LOSS OF 325 MILLION CITING THE LABOR DISPUTE AT THE PELLETMAKING SUBSIDIARY AS ONE FACTOR 9310190075 931019 BUSINESS BRIEF PEOPLES FIRST CORP BANK CONCERN TO SWAP STOCK TO ACQUIRE FIRST KENTUCKY PEOPLES FIRST CORP PADUCAH KY SAID IT AGREED TO ACQUIRE FIRST KENTUCKY BANCORP INC IN A STOCK SWAP VALUED AT ABOUT 18 MILLION UNDER PROPOSED TERMS EACH OF FIRST KENTUCKY'S 409342 COMMON SHARES WOULD BE TRADED FOR 113597 SHARES OF PEOPLES FIRST THE ACQUISITION IS SUBJECT TO APPROVAL BY REGULATORS AND SHAREHOLDERS THE ACQUISITION IS EXPECTED TO BE ACCOUNTED FOR AS A POOLING OF INTEREST AND WON'T BE DILUTIVE TO EARNINGS PEOPLES SAID IT'S EXPECTED TO BE COMPLETE BY THE SECOND QUARTER OF 1994 PEOPLES FIRST IS A MULTIBANK HOLDING COMPANY SERVING WESTERN KENTUCKY AND SURROUNDING AREAS IN OTHER STATES IT HAD ASSETS OF MORE THAN 800 MILLION AS OF SEPT 30 FIRST KENTUCKY BASED IN CENTRAL CITY KY IS THE PARENT COMPANY OF FIRST KENTUCKY FEDERAL SAVINGS BANK WHICH HAD ASSETS OF 178 MILLION AS OF SEPT 30 9310190074 931019 TECHNOLOGY MOTOROLA U S WEST EACH UNVEIL PLANS TO WIDEN ACCESS TO BIG DATA NETWORKS BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL IN A COUPLE OF YEARS TELECOMMUNICATIONS COMPANIES WILL START OFFERING A HUGELY POWERFUL TRANSMISSION SYSTEM THAT LINKS COMPUTER NETWORKS AND HASTENS THE ARRIVAL OF THE MULTIMEDIA AGE BUT WHAT DO THOSE NETWORK OPERATORS DO IN THE MEANTIME AND HOW WILL THEY BE ABLE TO AFFORD WHAT PROMISES TO BE AN EXPENSIVE NEW SERVICE YESTERDAY MOTOROLA INC AND U S WEST INC BECAME THE FIRST MAJOR COMPANIES TO DISCLOSE PLANS TO MAKE IT MORE EASILY AFFORDABLE FOR OPERATORS OF LOCALAREA NETWORKS OR LANS TO USE MORE POWERFUL TELEPHONE LINES TO SWAP MULTIMEDIA INFORMATION WITH OTHER LANS OR BIGGER NETWORKS CURRENT LEASED TELEPHONE LINES CONNECT THEM TO OTHER NETWORKS AT SPEEDS OF 64000 TO 154 MILLION BITS OF INFORMATION A SECOND RELATIVELY FAST COMPARED TO ORDINARY TELEPHONE LINES BUT SLUGGISH COMPARED TO THE SPEEDS MADE POSSIBLE BY A COSTLY NEW TECHNOLOGY CALLED ASYNCHRONOUS TRANSFER MODE ATM ALLOWS TRANSMISSION AT 45 MILLION TO 622 MILLION BITS A SECOND WHICH WOULD ALLOW THE SIMULTANEOUS TRANSMISSION OF MANY KINDS OF VIDEO VOICE AND DATA APPLICATIONS OVER A SINGLE WIRE TELEPHONE COMPANIES EXPECT TO START SELLING ATM SERVICES BY 1995 BUT NETWORK OPERATORS ARE WORRIED ABOUT THE PRICE AND ABOUT HOW TO IMPROVE TRANSMISSION BEFORE THEN MOTOROLA SAID ITS CODEX DIVISION WILL START SELLING BY THE SECOND QUARTER OF NEXT YEAR A SOFTWAREBASED ATM SOFTCELL SWITCH THAT WILL INCREASE THE SPEEDS OF EXISTING LINES THREEFOLD TO FIVEFOLD AND WILL LET NETWORK OPERATORS MIX AND MATCH ATM ACCESS CONNECTING SOME OFFICES TO ATM WHILE RUNNING OTHERS ON THE ENHANCED EXISTING LINES A SWITCH IS A COMPUTER THAT CAN RELAY MILLIONS OF PHONE CALLS AND DATA MESSAGES AT THE SAME TIME UPGRADING TO ATM WILL BE RELATIVELY INEXPENSIVE BECAUSE THE SOFTCELL SWITCH CAN BE REPROGRAMMED RATHER THAN BEING REPLACED PRICES OF REDUNDANT SWITCHES WILL RANGE FROM 60000 A SITE TO 200000 FOR A SYSTEM THAT CAN CONNECT MORE THAN 1000 COMPUTERS U S WEST SAID IT HAS CHOSEN NEWBRIDGE NETWORKS INC HERNDON VA TO PROVIDE A SIMILAR ATM SWITCH IN TWO CUSTOMERS TRIALS SCHEDULED TO BE COMPLETED BY THE SECOND QUARTER OF 1994 NEWBRIDGE'S SWITCH WILL GIVE LAN OPERATORS THE SAME OPTION OF LINKING SOME BUT NOT ALL EXISTING LINES TO ATM TRANSMISSION AT PRICES BELOW 100000 EACH U S WEST SAID BUT THE NEWBRIDGE DEVICE WON'T SPEED UP EXISTING LINES THE CARRIER SAID U S WEST EXPECTS TO BE SELLING ATM SERVICES TO CUSTOMERS BY THE FIRST QUARTER OF 1995 WHILE MOTOROLA AND NEWBRIDGE BOTH PLAN TO SELL ATM SWITCHES THAT RESIDE IN OFFICES AND LINK LANS TO OTHER NETWORKS ANALYSTS SAY IT IS LIKELY THAT THEY WILL FOCUS ON DIFFERENT MARKETS AND THAT NEWBRIDGE WILL BE MORE AGGRESSIVE IN OFFERING LOWER PRICES JOE NOEL DIRECTOR OF NETWORKING RESEARCH AT THE RESEARCH FIRM DATAQUEST SAID NEWBRIDGE DOMINATES THE COMMONCARRIER MARKET WHILE CODEX SPECIALIZES IN PRIVATE NETWORKS RUN BY CORPORATIONS AND INSTITUTIONS MOTOROLA WILL SELL TO THE PRIVATE NETWORKS MR NOEL SAID THAT'S WHERE THEY HAVE THEIR INSTALLED BASE NEWBRIDGE WILL KILL THEM AND EVERYONE ELSE ON PUBLIC CARRIERS MOTOROLA SAID AMERICAN EXPRESS CO WILTEL AND INFONET SERVICES CORP AMONG OTHERS PLAN TO INSTALL AND TEST SOFTCELL IN THE FIRST QUARTER OF NEXT YEAR U S WEST SAID ITS TWO TRIALS WILL BEGIN IN NOVEMBER AND DECEMBER AT SITES IN ITS SERVICE REGION AN 11MEMBER CONSORTIUM OF ORGANIZATIONS IN BOULDER COLO AND A GROUP OF STATE UNIVERSITIES AND STATE GOVERNMENT AGENCIES IN OREGON 9310190073 931019 ENTERPRISE FOCUS ON FRANCHISING SOME FRANCHISERS TAKE HEART FROM DELAYED HEARING BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL A SETBACK FOR FRANCHISEES A HOUSE HEARING FAILS TO HAPPEN LIKE SHERLOCK HOLMES WHEN HE SOUGHT THE MEANING OF A DOG THAT DIDN'T BARK FRANCHISERS ARE WONDERING WHAT IS SIGNIFIED BY A CONGRESSIONAL HEARING THAT HASN'T HAPPENED SOME ARE CONCLUDING PERHAPS WISHFULLY THAT CONGRESS NOW HAS LITTLE INTEREST IN TIGHTENING REGULATIONS ON FRANCHISERS THE DEBATE IN CONGRESS OVER PROPOSED CURBS ON FRANCHISING ABUSE HAS BEEN CONFINED IN RECENT YEARS TO THE HOUSE SMALL BUSINESS COMMITTEE COMMITTEE CHAIRMAN JOHN J LAFALCE D NY IS THE LEADING CHAMPION IN CONGRESS OF FRANCHISEES WHILE HE HAS PROPOSED HIS OWN BILLS HIS PANEL LACKS POWER TO DRAFT LEGISLATION THE MORE POWERFUL TRANSPORTATION AND HAZARDOUS MATERIALS SUBCOMMITTEE HAD BEEN EXPECTED TO HOLD A FRANCHISING HEARING THIS FALL A SIGNIFICANT ADVANCE FOR THE DEBATE THE PANEL HELPS OVERSEE THE FEDERAL TRADE COMMISSION WHICH REGULATES FRANCHISING BUT NO HEARING HAS BEEN SCHEDULED PEOPLE CLOSE TO THE SUBCOMMITTEE SAY IT IS PREOCCUPIED WITH ISSUES RELATED TO CLEANING UP WASTE SITES A STAFF MEMBER SAYS ONLY THAT THE SUBCOMMITTEE WILL DECIDE EARLY IN 1994 WHETHER TO TAKE UP FRANCHISING FRANCHISING LAWYER DAVID J KAUFMANN IN NEW YORK SAYS THE DECISION NOT TO HOLD A HEARING THIS FALL IS A SIGN CONGRESS HAS NO INTEREST IN ATTACKING FRANCHISERS ANTHONY W DESIO PRESIDENT OF FRANCHISER MAIL BOXES ETC IN SAN DIEGO SEES NO BROAD SUPPORT IN CONGRESS FOR PROPOSED CURBS ON FRANCHISERS BUT DEMANDS ON CONGRESS FROM DISSIDENT FRANCHISEES ARE MOUNTING THE ISSUES ARE NOT DEAD SAYS SUSAN P KEZIOS PRESIDENT OF THE AMERICAN FRANCHISEE ASSOCIATION AN UMBRELLA GROUP LOBBYING FOR CURBS ON FRANCHISERS AS FOR THE SUBCOMMITTEE HEARING MS KEZIOS EXPECTS IT TO HAPPEN BEFORE LONG A DIFFERENCE OF TWO OR THREE MONTHS IS MEANINGLESS SHE SAYS SOME BUYERS OF BRAKE SHOP FRANCHISES CLAIM THEY WERE MISLED AS ALL SORTS OF SPECIALIZED FRANCHISES PROLIFERATE MANY WONDER WHETHER SOME LINES OF BUSINESS ARE SIMPLY TOO NARROW TO SUPPORT A FRANCHISE CHAIN IN SEVERAL COURTS FRANCHISE BUYERS ARE PURSUING FRAUD CHARGES AGAINST ONE NARROWLY FOCUSED FRANCHISER BRAKE SHOP INC OF CLINTON TOWNSHIP MICH FOR INSTANCE IN FEDERAL COURT IN TRENTON NJ THE BUYERS OF SIX BRAKE SHOP UNITS MOST OF WHICH ARE NOW DEFUNCT ARE SEEKING TRIPLE DAMAGES AND COSTS TOTALING MORE THAN 15 MILLION THE PLAINTIFFS SAY THE FRANCHISER MISLED THEM INTO BUYING BUSINESSES INCAPABLE OF PRODUCING SUFFICIENT PROFIT THEIR ATTORNEY GERALD A MARKS OF RED BANK NJ SAYS THE FRANCHISE TERRITORIES WERE TOO SMALL TO PRODUCE ENOUGH CUSTOMERS FOR WHAT WAS A NARROW BUSINESS SERVICING CAR BRAKES IN SEVERAL CASES MR MARKS SAYS HE AIMS TO PROVE THAT BRAKE SHOP MADE LITTLE EFFORT TO FIND VIABLE TERRITORIES FOR FRANCHISEES IN A SEPARATE MICHIGAN CASE A FORMER BRAKE SHOP FRANCHISEDEVELOPMENT OFFICIAL MICHAEL STOVER FILED AN AFFIDAVIT ON BEHALF OF A FRANCHISEE IN WHICH HE CALLED THE FRANCHISER'S SITESELECTION EFFORTS MINIMAL AND INADEQUATE MR MARKS CALLS THIS AFFIDAVIT FILED IN MACOMB COUNTY CIRCUIT COURT A SMOKING GUN FOR USE IN THE OTHER CASES BRAKE SHOP WHICH SAYS IT OVERSEES 74 FRANCHISED UNITS IN 14 STATES HAS DENIED WRONGDOING AND IS SUING SEVERAL OF THE SAME FRANCHISE BUYERS FOR ROYALTIES THEY ALLEGEDLY FAILED TO PAY IT THE FRANCHISER ALSO IS SEEKING DAMAGES FROM SOME OF ITS BUYERS WHO ADVISED OTHER PEOPLE NOT TO BUY BRAKE SHOPS FOR INTERFERING WITH ITS BUSINESS GROWING PRESS COVERAGE OF DISPUTES VEXES FRANCHISERS FRANCHISING ISSUES LONG IGNORED OUTSIDE THE BUSINESS PRESS ARE GETTING MORE ATTENTION IN THE GENERALINTEREST MEDIA IN PART BECAUSE NEW FRANCHISEE GROUPS ARE INVITING INTEREST FRANCHISEES DEMAND MORE POWER CONTROL REPORTED THE ORLANDO SENTINEL IN JULY IN A LONG FEATURE JOINING FORCES AGAINST GOLIATH THE BOSTON GLOBE IN JULY TOLD OF FRANCHISEE LAWSUITS AGAINST DOCTOR'S ASSOCIATES INC'S SUBWAY CHAIN AND GRAND METROPOLITAN PLC'S BURGER KING CHAIN THE WASHINGTON POST WEIGHED IN LAST MONTH WITH HEADLINES OF ITS OWN FRANCHISEES FIGHT BACK AND FUROR OVER FRANCHISING THE TONE OF THE COVERAGE INFURIATES FRANCHISERS THEY FEAR IT WILL MOBILIZE MORE FRANCHISEES AND AROUSE LEGISLATORS WITH BILLS TO RESTRICT FRANCHISERS THE REAL THRUST OF MANY STORIES IS UNHAPPY FRANCHISEES SAYS A SPOKESMAN FOR THE INTERNATIONAL FRANCHISE ASSOCIATION A TRADE GROUP HE SAYS MOST FRANCHISEES LARGELY OVERLOOKED BY THE MEDIA ARE HAPPY MANY FRANCHISERS STILL PAY LITTLE ATTENTION TO PUBLIC RELATIONS FRANCHISERS SHOULD BE PITCHING POSITIVE STORIES TO MEMBERS OF THE MEDIA SAYS NEIL A SIMON A WASHINGTON LAWYER A COURT VICTORY EMBOLDENS A FRANCHISER TO SCOLD LITIGIOUS FRANCHISEES MINUTEMAN PRESS INTERNATIONAL INC WON A FAVORABLE JURY VERDICT LAST MONTH IN FEDERAL COURT IN SAN JOSE CALIF JURORS REJECTED CHARGES OF FRAUD AND OTHER WRONGDOING BY THE OWNERS AND FORMER OWNERS OF THREE FRANCHISES MINUTEMAN CONTENDED THAT ANY LOSSES HAD RESULTED FROM THE FRANCHISEES' MISMANAGEMENT THE OUTCOME SENDS A STRONG MESSAGE TO FRANCHISEES THAT A FRANCHISER IS NOT A GUARANTOR OR INSURER OF A FRANCHISEE'S SUCCESS SAYS CHARLES G MILLER AN ATTORNEY WITH BARTKO TARRANT & MILLER IN SAN FRANCISCO THE FIRM IS DEFENDING MINUTEMAN IN A SERIES OF CASES BROUGHT BY FRANCHISEES AND FORMER FRANCHISEES ATTORNEYS FOR THE PLAINTIFFS DIDN'T RETURN PHONE CALLS SEEKING COMMENT FRANCHISERS SAY THE CALIFORNIA CASE REFLECTS A SIMPLE TRUTH THAT MANY PEOPLE ARE FORGETTING FRANCHISEES ARE OFTEN TO BLAME FOR FRANCHISE FAILURES A FRANCHISEE SIMPLY CANNOT SHIFT ALL BLAME TO ANOTHER PARTY BUT MUST SHOULDER SOME OF THE RESPONSIBILITY FOR HIS OR HER OWN DESTINY MR MILLER SAYS SOME FRANCHISING SPECIALISTS COUNTER THAT CURRENT LAWS FAVOR FRANCHISERS AND PREDICT THAT TOUGHER LAWS BEING SOUGHT BY FRANCHISEES WOULD TIP THE SCALES IN FRANCHISEES' DIRECTION BOTH MINUTEMAN AND ITS SPEEDY SIGNARAMA USA INC UNIT STILL FACE MAJOR LEGAL CHALLENGES FEW OF THEIR FRANCHISEES HAVE ACHIEVED PROMISED LEVELS OF SALES OR PROFIT THE FTC HAS CHARGED BRIEFS ENTREPRENEUR TELEVISION INC IN ATLANTA IS PRODUCING A WEEKLY CABLETV SHOW CONSISTING OF INFOMERCIALS LONG COMMERCIALS THAT RESEMBLE NEWS PROGRAMS FOR FRANCHISE SYSTEMS FRANCHISER INTERNATIONAL POULTRY CO ENLISTS A CONSULTANT FORMER BASEBALL PLAYER RUSTY STAUB NOW A RESTAURATEUR WHO WILL HELP THE CHAIN DEVELOP AND PROMOTE FRANCHISES 9310190072 931019 BUSINESS BRIEF CONVERSION INDUSTRIES INC INVESTMENT COMPANY MULLS ACQUISITION OF ARC STAKE CONVERSION INDUSTRIES INC AND ARC INTERNATIONAL CORP OF TORONTO SAID THEY ARE DISCUSSING THE POSSIBLE ACQUISITION BY THE PASADENA CALIF COMPANY OF AN 18 STAKE IN ARC ARC A MAKER OF MOVIE AND SPECIALTY RESTAURANT EQUIPMENT HAS ABOUT 101 MILLION COMMON SHARES OUTSTANDING WHICH CLOSED AT 475 DOWN 625 CENTS ON THE AMERICAN STOCK EXCHANGE A COMPANY SPOKESMAN SAID THE PROPOSED ACQUISTION COULD INVOLVE ISSUANCE OF NEW EQUITY AND ADDED THAT THE COMPANIES HOPE TO REACH AN AGREEMENT AND TAKE THE FIRST STEPS OF THE TRANSACTION BY YEAR'S END THE STOCK OF CONVERSION INDUSTRIES WHICH FINANCES AND INVESTS IN GROWTH COMPANIES FELL 25 CENTS TO CLOSE AT 1350 ON THE AMEX 9310190071 931019 BUSINESS BRIEF PACIFIC TELESIS GROUP THIRDPERIOD NET ROSE 13 ON ONETIME PROVISIONS PACIFIC TELESIS GROUP SAID THIRDQUARTER NET INCOME INCREASED 13 BUT MOST OF THE GAINS CAME ON ACCOUNTING ADJUSTMENTS LEAVING OPERATING PROFIT ESSENTIALLY FLAT THE REGIONAL BELL COMPANY BASED IN SAN FRANCISCO REPORTED PROFIT OF 323 MILLION OR 77 CENTS A SHARE COMPARED WITH 287 MILLION OR 71 CENTS A SHARE REVENUE ROSE 36 TO 26 BILLION IT SAID FEDERAL TAX LEGISLATION AND OTHER ONETIME ITEMS ACCOUNTED FOR ABOUT 28 MILLION OR 67 CENTS A SHARE OF EARNINGS THE COMPANY SAID SOLID PERFORMANCE AT DOMESTIC AND INTERNATIONAL CELLULAR AND PAGING OPERATIONS HELPED OFFSET THE EFFECTS OF A SLUGGISH STATE ECONOMY PACIFIC TELESIS'S LARGEST UNIT PACIFIC BELL WHICH PROVIDES TELECOMMUNICATIONS SERVICE TO MOST OF CALIFORNIA REPORTED PROFIT FELL 10 TO 257 MILLION THE COMPANY SAID MUCH OF THE DECLINE STEMMED FROM INCREASED FEDERAL TAXES AND CHANGES IN ACCOUNTING FOR RETIREE BENEFITS 9310190070 931019 MICROSOFT SLOWS JOB GROWTH AMID PRICE WAR REDEPLOYMENT PLAN SEEKS TO CUT AS MUCH AS 5 FROM TARGETED GROUPS BY DON CLARK AND G PASCAL ZACHARY STAFF REPORTERS OF THE WALL STREET JOURNAL MICROSOFT CORP ADJUSTING TO A NEW ERA OF SOFTWARE PRICECUTTING IS PUTTING THE BRAKES ON ITS FASTGROWING WORK FORCE THE GIANT SOFTWARE COMPANY HAS TOLD MANAGERS TO REDUCE THE SIZE OF SOME PRODUCT GROUPS BY AS MUCH AS 5 AS THEIR DEVELOPMENT PROJECTS ARE COMPLETED SELECTED LOWERPERFORMING EMPLOYEES WITHIN THOSE GROUPS HAVE BEEN TOLD OVER THE PAST FEW MONTHS THAT THEIR JOBS ARE BEING ELIMINATED BUT THEY ARE FREE TO APPLY TO OTHER PARTS OF THE COMPANY THAT ARE STILL EXPANDING IF THEY ARE NOT HIRED THERE THE EMPLOYEES ARE LAID OFF MIKE MURRAY MICROSOFT'S VICE PRESIDENT OF HUMAN RESOURCES AND ADMINISTRATION STRESSED IN AN INTERVIEW YESTERDAY THAT THE REDMOND WASH COMPANY'S TOTAL HEAD COUNT WILL STILL GROW BY AN UNSPECIFIED AMOUNT THIS YEAR HE SAID THE COMPANY HAS NO GOAL FOR THE NUMBER OF PEOPLE TARGETED BY THE REDEPLOYMENT BUT SOME PEOPLE FAMILIAR WITH THE COMPANY'S PLANS SAY THAT AS MANY AS 700 PEOPLE OR NEARLY 5 OF MICROSOFT'S TOTAL WORK FORCE OF 14430 COULD BE AFFECTED IN ANY CASE THE STRATEGY IS THE CLEAREST SIGN YET OF THE IMPACT OF SLOWING REVENUE GROWTH ON THE DOMINANT MAKER OF PERSONAL COMPUTER SOFTWARE MICROSOFT LARGELY BECAUSE IT IS THE SOLE SOURCE OF THE MOST POPULAR PC OPERATING SYSTEMS HAD UNTIL RECENTLY BEEN LARGELY UNTOUCHED BY THE PRICECUTTING THAT HAS RAVAGED OTHER SEGMENTS OF THE INDUSTRY BUT TOP COMPANY EXECUTIVES HAVE BEEN WARNING FOR SEVERAL MONTHS THAT ITS HISTORIC REVENUE GROWTH RATES COULD NOT BE SUSTAINED AND THAT IT COULD NOT KEEP HIRING AT THE SAME HECTIC PACE EVEN BEFORE THE REDEPLOYMENT PLAN MICROSOFT HAD AN IMAGE AS A TOUGH PLACE TO WORK FOR THOSE WHO ARE NOT SUPERSTAR PROGRAMMERS A STEPPEDUP EFFORT TO CULL THE WORK FORCE OF LESS VALUABLE WORKERS EMERGED AFTER AN EXECUTIVE RETREAT IN FEBRUARY ACCORDING TO A MEMO BY MR MURRAY THAT SAID HIS HUMAN RESOURCES ORGANIZATION WOULD HELP WITH THE TASK MICROSOFT MANAGERS ARE RESPONSIBLE FOR WEEDING OUT THE NONPERFORMERS AND HR IS RESPONSIBLE FOR PROVIDING MANAGERS WITH THE COMPETENCE TO KNOW HOW TO DO THIS THE MEMO STATES WHILE NOT UNIQUE MICROSOFT'S SELECTIVE JOB CUTS CONTRAST SHARPLY WITH THE APPROACHES OF SOME OLDER COMPANIES WHICH TYPICALLY RETAIN PEOPLE BASED ON SENIORITY EVEN WITHIN THE COMPUTER INDUSTRY COMPANIES SUCH AS IBM CORP HAVE OFFERED VOLUNTARY SEVERANCE PACKAGES THAT SOMETIMES HAVE THE UNINTENDED EFFECT OF ALLOWING THE MOST COVETED EMPLOYEES TO TAKE JOBS ELSEWHERE BY ANY STANDARDS MICROSOFT'S EMPLOYMENT GROWTH OVER THE PAST FEW YEARS HAS BEEN EXTRAORDINARY OUT OF MORE THAN 14000 PEOPLE EMPLOYED TODAY MR MURRAY ESTIMATED THAT ABOUT 8000 HAVE BEEN HIRED OVER THE PAST THREE YEARS MEANWHILE THE HEADY SALES GROWTH OF THE MID1980S HAS BEGUN TO SLOW AND PRICE WARS ON NEW SOFTWARE PROGRAMS HAVE CONTRIBUTED TO PRESSURES ON PROFIT MARGINS TOTAL REVENUE GREW 36 TO 37 BILLION IN THE YEAR ENDED IN JUNE DOWN FROM THE 1992 GROWTH RATE OF 50 DAVID READERMAN AN ANALYST WITH LEHMAN BROTHERS EXPECTS REVENUE GROWTH TO SLOW TO 19 IN THE CURRENT FISCAL YEAR HITTING 45 BILLION HE EXPECTS THE COMPANY'S WORK FORCE TO GROW 5 TO 10 THIS YEAR AFTER THE REDEPLOYMENTS COMPARED WITH 25 IN FISCAL 1993 MIKE MAPLES A MICROSOFT EXECUTIVE VICE PRESIDENT WHO HELPS MANAGE DAYTODAY OPERATIONS FIRST BEGAN TALKING ABOUT REDUCING THE SIZE OF SOME PRODUCT DEVELOPMENT GROUPS SEVERAL MONTHS AGO ONE EXAMPLE MR MURRAY SAID IS A CONSOLIDATION OF TWO GROUPS THAT ARE WORKING ON MICROSOFT'S WINDOWS NT OPERATING SYSTEM AND ANOTHER OPERATING SYSTEM CALLED CAIRO BY CREATING ONE LARGER DEVELOPMENT ORGANIZATION HE SAID DUPLICATIONS OF FUNCTIONS RESULTED IN ABOUT 22 PEOPLE BEING LEFT WITHOUT JOBS OUTSIDE OBSERVERS SAY THE PROCESS HAS INCREASED THE PRESSURE INSIDE THE COMPANY WHICH HAS ALWAYS BEEN INTOLERANT OF THOSE NOT SEEN TO BE AMONG THE BEST AND BRIGHTEST MICROSOFT IS MADE UP OF PEOPLE THAT ARE VERY BRIGHT TECHNICALLY AND SORT OF SOCIALLY CHALLENGED SAID JESSE BERST EDITOR OF WINDOWS WATCHER AN INDUSTRY NEWSLETTER IN REDMOND THEY HAVE THIS KIND OF SOCIETY OF MISFITS JUDGING EACH OTHER IF YOU CAN'T GET ALONG WITH ONE OF THE MISFITS YOU MAY BE OUT 9310190069 931019 SMALL STOCK FOCUS SHARES SAG ENDING FIVE DAYS OF HIGHS ON PROFITTAKING CONCERN OVER BONDS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMALL STOCKS SAGGED BREAKING LAST WEEK'S STREAK OF FIVE CONSECUTIVE DAYS OF RECORD HIGHS THE RUSSELL 2000 INDEX A MEASURE OF SMALL STOCKS ON THE NASDAQ MARKET AND NEW YORK AND AMERICAN STOCK EXCHANGES DROPPED 041 OR 016 TO 25957 YESTERDAY AFTER LAST WEEK THE MARKET IS ALLOWED TO TAKE A BREATHER SAID WILLIAM ROTHE HEAD OF NASDAQ TRADING AT ALEX BROWN & SONS IN BALTIMORE THERE WAS SOME CONCERN ABOUT THE BOND MARKET AND SOME INVESTORS DECIDED TO TAKE PROFITS MANY OF THE TELECOMMUNICATIONS STOCKS THAT SURGED LAST WEEK RESTED BUT MERGER ANNOUNCEMENTS BY NEXTEL COMMUNICATIONS SENT SHARES OF SPECIALIZED MOBILE RADIO COMPANIES OR SMRS SOARING NEXTEL ROSE 3/8 TO 50 1/4 THE GIANT SMR SAID IT IS ACQUIRING TWO COMPANIES WHICH WILL ENABLE IT TO EXTEND THE REACH OF ITS DIGITAL MOBILE SERVICE TO SAN DIEGO LAS VEGAS AND OTHER WESTERN MARKETS NEXTEL SAID IT HAS STARTED OFFERING ITS ADVANCED WIRELESS COMMUNICATIONS SERVICES IN SOUTHERN CALIFORNIA NEXTEL SAID ITS BOARD AND THOSE OF QUESTAR AND ADVANCED MOBILECOMM HAVE APPROVED A BINDING LETTER OF AGREEMENT TO EFFECT TAXFREE MERGERS OF A UNIT OF PRIVATELY HELD ADVANCED MOBILCOMM AND QUESTAR TELECOM A QUESTAR UNIT INTO A SUBSIDIARY OF NEXTEL IN A TRANSACTION VALUED AT ABOUT 290 MILLION QUESTAR NYSE DROPPED 3 5/8 TO 39 3/8 THE MERGER IS SUBJECT TO REGULATORY APPROVAL CENCALL SURGED 7 3/4 TO 44 1/2 NEXTEL SAID IT HAS FORMED A STRATEGIC RELATIONSHIP WITH DENVERBASED CENCALL COMMUNICATIONS WHICH WILL STRENGTHEN AND EXPAND CENCALL'S OPERATING TERRITORIES TO MORE THAN 25 MILLION POTENTIAL CUSTOMERS FROM 19 MILLION NEXTEL SAID IT AGREED IN PRINCIPLE TO CONTRIBUTE TO CENCALL SMR ASSETS IN WASHINGTON OREGON AND COLORADO ACQUIRED FROM QUESTAR TELECOM AND ADVANCED MOBILECOMM AS WELL AS SMR ASSETS IN ARIZONA AND MINNESOTA IN EXCHANGE NEXTEL WILL RECEIVE 11 MILLION CENCALL SHARES ABOUT 37 OF CENCALL ON A FULLY DILUTED BASIS THE TRANSACTION IS SUBJECT TO THE APPROVAL OF REGULATORY AGENCIES AND THE COMPANIES' BOARDS ANOTHER SMR COMPANY GEOTEK INDUSTRIES ROSE 1/4 TO 9 3/4 THE COMPANY SAID IT HAS SIGNED AN AGREEMENT TO ACQUIRE THROUGH A STOCK MERGER METRO NET SYSTEMS FOR THREE MILLION GEOTEK SHARES THE COMPANY SAID AN ADDITIONAL 500000 SHARES MAY BE ISSUED TO METRO NET SHAREHOLDERS UNDER CERTAIN CIRCUMSTANCES METRO NET PROVIDES WIDEAREA DISPATCH AND INTERCONNECTS ABOUT 8000 MOBILE USERS IN INDUSTRIES SUCH AS TRUCKING CONSTRUCTION AND TRANSPORTATION VERTEX INDUSTRIES TUMBLED 4 3/4 TO 20 ON 450800 SHARES EIGHT TIMES ITS NORMAL VOLUME SHARES OF THE CLIFTON NJ COMPANY PLUNGED AS LOW AS 17 1/2 ALTHOUGH THE STOCK HAS FALLEN FROM ITS 52WEEK HIGH OF 28 1/4 IT IS STILL FAR ABOVE ITS LOW OF 3 THERE IS NO REASON FOR THE UNUSUAL STOCK ACTIVITY SAID RONALD BYER CHIEF FINANCIAL OFFICER VERTEX SELLS AUTOMATED CARD READERS AND DECODERS FOR CREDIT CARDS BARCODE SCANNERS AND BADGES ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS JAMES MALOY VERTEX'S CHAIRMAN HAS SOLD ABOUT 53000 SHARES AND MR BYER HAS SOLD AT LEAST 80000 SHARES SINCE JULY MR BYER SAID HE OWNS 450000 SHARES AND MR MALOY HAS ABOUT 13 MILLION SHARES I SOLD THE STOCK BECAUSE OF THE PERSONAL PROBLEMS I HAD TO TAKE CARE OF MR BYER SAID I STILL OWN A LOT OF THE STOCK I WOULDN'T EXACTLY CALL IT A BAILOUT SPECTRUM INFORMATION TECHNOLOGIES LEAPED 3 1/2 TO 11 1/8 ON 208 MILLION SHARES MORE THAN NINE TIMES ITS NORMAL VOLUME THE MANHASSET NY COMPANY NAMED JOHN SCULLEY APPLE COMPUTER'S FORMER CHAIRMAN AND CHIEF EXECUTIVE ITS CHAIRMAN AND CHIEF EXECUTIVE SPECTRUM SAID MR SCULLEY WILL SUCCEED PETER CASERTA WHO WILL REMAIN AS VICE CHAIRMAN AND PRESIDENT SPECTRUM IS A DEVELOPER OF WIRELESS COMMUNICATIONS PRODUCTS 9310190068 931019 BUSINESS BRIEF AGNICOEAGLE MINES LTD GOLDMINING CONCERN SETS PROPOSED STOCKSWAP TERMS AGNICOEAGLE MINES LTD SAID IT SET THE TERMS OF ITS PROPOSED ACQUISITION OF SHARES OF GOLDEX MINES LTD IT DOESN'T OWN AT 036 AGNICO SHARE FOR EACH GOLDEX SHARE AGNICO OWNS ABOUT 56 OF GOLDEX'S 13 MILLION SHARES OUTSTANDING AND IS PROPOSING TO COMBINE GOLDEX WITH AN AGNICO UNIT AGNICO SAID GOLDEX'S INDEPENDENT DIRECTOR GLEN KEAN WILL STUDY THE PROPOSED OFFER AND MAKE A RECOMMENDATION TO THE BOARD ON RECEIPT OF A FORMAL VALUATION IF APPROVED BY THE BOARD THE PROPOSAL WILL BE SUBMITTED TO GOLDEX SHAREHOLDERS IN DECEMBER THE TRANSACTION WOULD REQUIRE APPROVAL OF A MAJORITY OF GOLDEX'S MINORITY SHAREHOLDERS AGNICO AND GOLDEX ARE TORONTOBASED GOLDMINING CONCERNS 9310190067 931019 BUSINESS BRIEF AMERICAN FILTRONA CORP THIRDQUARTER NET ROSE 35 ON GAINS IN PLASTIC BUSINESS AMERICAN FILTRONA CORP RICHMOND VA REPORTED A 35 INCREASE IN THIRDQUARTER NET INCOME REFLECTING THE STRENGTH OF ITS PLASTICEXTRUSION AND INKRESERVOIR BUSINESSES THE MAKER OF FILTERS AND PLASTIC COMPONENTS SAID EARNINGS ROSE TO 2 MILLION OR 55 CENTS A SHARE FROM 15 MILLION OR 41 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 95 TO 40 MILLION FROM 365 MILLION THE COMPANY SAID THIRDQUARTER GAINS ALSO WERE HELPED BY ITS FILPAC UNIT A SUPPLIER OF FLEXIBLE PACKAGING MATERIAL 9310190066 931019 MARKETSCAN IT'S FLU SEASON AND IT'S GOING TO BE BAD BY KATHLEEN DEVENY MORE PEOPLE ARE COUGHING AND SNEEZING THESE DAYS AND THAT'S EXCELLENT NEWS FOR MARKETERS OF COLD AND FLU REMEDIES AMERICANS ARE CATCHING COLDS EARLIER THIS YEAR AND MARKETERS SAY CONSUMERS ARE SPENDING MORE THIS YEAR THAN LAST ON OVERTHECOUNTER DRUGS TO SOOTHE THEIR SYMPTOMS IF PUBLIC HEALTH OFFICIALS' WARNINGS OF A SEVERE FLU SEASON PROVE ACCURATE THIS COULD BE A BANNER SEASON FOR MEDICINE MARKETERS SO FAR IT IS TURNING OUT TO BE A VERY STRONG COLD SEASON SAYS KAREN RICHARDS BROWN DIRECTOR OF CONSUMER AFFAIRS FOR AMERICAN HOME PRODUCTS CORP MAKER OF ROBITUSSIN AND DIMETAPP TO CONSUMERS FALL IS THE BEGINNING OF THE HOLIDAY SEASON BUT TO MARKETERS OF NONPRESCRIPTION DRUGS IT'S THE BEGINNING OF THE VIRUS SEASON WHEN THE 200 OR SO VIRUSES THAT CAN CAUSE COLDS BEGIN INFECTING PEOPLE AGAIN NEARLY TWICE AS MANY NEW COLD AND FLU PRODUCTS HAVE BEEN INTRODUCED THIS YEAR COMPARED WITH 1992 AND THE AIRWAVES ARE FLOODED WITH ADVERTISEMENTS SHOWING FRETTING MOMS MINISTERING TO BEDRIDDEN CHILDREN AND SPOUSES TREATING THEIR SLEEPLESS MATES MARKETERS ALREADY HAVE SPUN OUT SOME 80 NEW PRODUCT VARIATIONS SINCE THE BEGINNING OF THE YEAR ACCORDING TO MARKETING INTELLIGENCE SERVICE LTD A NAPLES NY COMPANY THAT TRACKS NEWPRODUCT INTRODUCTIONS THAT COMPARES WITH ONLY 42 NEW PRODUCTS DURING THE COMPARABLE PERIOD IN 1992 YET BECAUSE THERE IS ONLY A SHORT LIST OF INGREDIENTS DEEMED SAFE AND EFFECTIVE BY THE FOOD AND DRUG ADMINISTRATION FOR SALE DIRECTLY TO CONSUMERS MOST PRODUCTS OFFER LITTLE NEW RELIEF LAST SEASON'S KEY SELLING POINT ELIMINATING DROWSINESS AS A SIDE EFFECT REMAINS STRONG BUT THIS SEASON'S MOST PREVALENT PITCH SEEMS TO BE MERELY A NEW FORM OF CAPSULE CLEAR GELATIN CAPSULES FILLED WITH LIQUID MEDICINE SUCH AS ROBITUSSIN SEVERE CONGESTION LIQUIGELS SUDAFED COLD & COUGH LIQUID CAPS OR VICKS FORMULA 44 COLD FLU AND COUGH LIQUID CAPS ARE AMONG THIS YEAR'S NEW ENTRIES ONE NEW TWIST A UNIT OF CIBAGEIGY CORP HAS LAUNCHED A NEW PRODUCT CALLED EFIDAC/24 THAT PROMISES TO RELIEVE A STUFFED UP NOSE FOR UP TO 24 HOURS HOURS LONGER THAN OTHER TOP BRANDS THE DRUG'S BASIC ACTIVE INGREDIENT PSEUDOEPHEDRINE HYDROCHLORIDE ISN'T NEW BUT THE FDA HADN'T APPROVED THE NEW TIMERELEASE FORMULA FOR SALE DIRECTLY TO CONSUMERS UNTIL LATE LAST YEAR ALREADY THE COMPANY HAS DUBBED THIS COLD SEASON A BAD ONE SOME 46 CITIES ARE ON THE COMPANY'S COLD ADVISORY BASED ON ITS WEEKLY SURVEY OF 1500 MEDICAL PROFESSIONALS AT THIS TIME LAST YEAR NO CITIES HAD MADE THE ROSTER BECAUSE CONSUMERS TYPICALLY WAIT UNTIL THEY ARE ALREADY SNIFFLING TO BUY COLD REMEDIES MARKETERS SAY SALES OF OVERTHECOUNTER COLD REMEDIES TYPICALLY TRACK INFECTION RATES CLOSELY LAST SEASON FOR EXAMPLE SALES OF COUGH COLD AND FLU MEDICATIONS DIPPED IN DECEMBER COMPARED WITH THE PREVIOUS YEAR ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE BECAUSE OF A MODERATE FLU SEASON BUT SALES SOARED AFTER AN ESPECIALLY VIRULENT FLU BUG TURNED UP IN FEBRUARY AS A RESULT UNIT SALES OF NONPRESCRIPTION COLD AND FLU MEDICATIONS IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS FOR THE 19921993 SEASON GREW 102 COMPARED WITH THE PREVIOUS COLD AND FLU SEASON WHILE DOLLAR SALES INCREASED 118 AMONG THE BRANDS MAKING THE BIGGEST DOLLAR GAINS WERE PROCTER & GAMBLE CO'S VICKS LINE AND AMERICAN HOME PRODUCTS' ROBITUSSIN ALSO DRIVING SALES LAST YEAR'S OVERTHECOUNTER LAUNCH OF SANDOZ PHARMACEUTICALS CORP'S TAVIST AN ANTIHISTAMINE/DECONGESTANT THE DRUG WAS PREVIOUSLY AVAILABLE ONLY BY PRESCRIPTION MEDICAL EXPERTS SAY IT IS FAR TOO EARLY TO PREDICT HOW THE WHOLE COLD AND FLU SEASON WHICH TYPICALLY DOES NOT PEAK UNTIL JANUARY OR FEBRUARY WILL UNFOLD BUT PUBLIC HEALTH OFFICIALS ARE WARNING OF A SEVERE SEASON MOST OF LAST YEAR'S INFLUENZA CASES WERE CAUSED BY RELATIVELY BENIGN TYPE B INFLUENZA VIRUSES LATE IN THE SEASON HOWEVER SCIENTISTS ISOLATED A NEW VARIANT OF THE INFLUENZA VIRUS KNOWN AS TYPE A/BEIJING/32/92 THE BEIJING STRAIN IS EXPECTED TO HIT AMERICANS THIS WINTER BECAUSE THE LAST STRAIN TO EMERGE IN THE SPRING IS USUALLY THE ONE THAT DOMINATES DURING THE FOLLOWING FLU SEASON SIMILAR TYPE A FLU BUGS WHICH FIRST APPEARED IN 1968 CAUSE MORE SEVERE SYMPTOMS AND COMPLICATIONS THAN OTHER VIRUSES NOW CIRCULATING UNLIKE MANY OTHER VIRUSES INFLUENZA BUGS CHANGE PERIODICALLY AND CIRCUMVENT ANTIBODIES PEOPLE HAVE DEVELOPED AFTER PAST INFECTIONS BUT THIS YEAR'S VIRUS IS ONLY A SLIGHT VARIATION FROM PREVIOUS TYPE A VIRUSES AND ISN'T EXPECTED TO CAUSE A FULLSCALE PANDEMIC BECAUSE THE CURRENT TYPE A STRAIN WAS IDENTIFIED EARLY MANUFACTURERS HAVE BEEN ABLE TO INCORPORATE IT IN THIS YEAR'S VACCINE THERE ALSO ARE TWO PRESCRIPTION DRUGS AVAILABLE FOR TREATING TYPE A INFLUENZA INFECTIONS CALLED AMANTADINE AND RIMANDATINE BUT MANY HEALTHY ADULTS WHO CONTRACT MILD CASES END UP ALONGSIDE COLD SUFFERERS STARING AT A BEWILDERING ARRAY OF NONPRESCRIPTION TREATMENTS AT THEIR LOCAL DRUGSTORE ALTHOUGH NONE OF THE OVERTHECOUNTER MEDICATIONS CURE COLDS OR THE FLU DOCTORS SAY THEY CAN PROVIDE TEMPORARY RELIEF OF SOME SYMPTOMS THESE THINGS DON'T HURT YOU SAYS DR JACK GWALTNEY HEAD OF THE DIVISION OF EPIDEMIOLOGY AND VIROLOGY AT THE UNIVERSITY OF VIRGINIA SCHOOL OF MEDICINE THEY'RE WORTH TAKING IF YOU CAN'T SLEEP AT NIGHT BECAUSE YOUR NOSE IS STUFFED UP AND YOU'RE COUGHING 9310190065 931019 COMMODITIES ANALYSTS DISAGREE OVER WHETHER GOLD PRICES CAN REACH 400 AN OUNCE AGAIN THIS YEAR BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CAN GOLD REVISIT 400 AN OUNCE THIS YEAR SOME ANALYSTS THINK SO BUT DON'T GET YOUR HOPES UP GOLD LOVERS YESTERDAY GOLD FOR DECEMBER DELIVERY JUMPED 340 TO SETTLE AT 36960 AN OUNCE HAVING BEEN AS HIGH AS 37140 EARLIER IN THE DAY ON NEW YORK'S COMMODITY EXCHANGE LAST WEEK GOLD FINISHED 470 STRONGER IN THE YEAR TO DATE GOLD HAS AVERAGED 35516 AN OUNCE FOR THE ACTIVE FUTURES CONTRACT UP 27 FROM THE SAME PERIOD LAST YEAR A MONTH OR TWO AGO MOST ANALYSTS WOULD HAVE SAID THAT 400 GOLD BY DEC 31 WAS OUT OF THE QUESTION BUT NOW GIVEN THE PRECIOUS METAL'S RECENT RISE TO THE TOP OF A 360370 TRADING RANGE SOME THINK THAT A GRADUAL ASCENT TO THE PSYCHOLOGICALLY IMPORTANT 400 LEVEL IS POSSIBLE SOME SAY THE CLIMB ABOVE 400 THIS SUMMER WAS A PAPER RALLY WE SAY THE SUBSEQUENT RETREAT WAS BUT A PAPER CORRECTION IN A LONGTERM BULL MARKET SAYS JOE ROSTA RESEARCH DIRECTOR OF CPM GROUP A PRECIOUSMETALS CONSULTANCY IN NEW YORK GOLD PRICES ARE BEING SUPPORTED HE SAYS NOT ONLY BY GROWING DEMAND FROM EUROPEAN AND AMERICAN JEWELRY MAKERS BUT ALSO BY RISING DEMAND FROM EUROPEAN INVESTORS CONCERNED ABOUT RENEWED CURRENCY TURMOIL ON THE CONTINENT THIS TIME CENTERED ON A FLAGGING BELGIAN FRANC THOSE FACTORS WILL PROPEL GOLD TO 400 WITHIN THE YEAR HE PREDICTS OTHERS REJECT THAT VIEW INSISTING THAT GOLD'S APPRECIATION THIS MONTH HAS BEEN STRICTLY SPECULATIVE A MINIRALLY BASED NOT ON FUNDAMENTAL SUPPLYANDDEMAND FACTORS BUT ON TECHNICALS OR SHORTTERM WAGERS MADE ON THE BASIS OF HISTORIC PRICE PATTERNS A TECHNICAL BOUNCE THESE SKEPTICS ADD CAUGHT SOME INVESTORS WHO HAD BEEN BETTING ON PRICE DECLINES OFF GUARD AND FORCED THEM TO COVER THEIR SHORT POSITIONS THAT SHORT COVERING AS DISTINCT FROM FRESH LONGTERM INVESTMENT IN GOLD HAS BEEN ADDING UPWARD MOMENTUM TO PRICES RECENTLY BUT ISN'T ENOUGH TO CARRY GOLD ON TO LOFTY HEIGHTS THEY SAY WE'RE NOT IN THE MIDDLE OF A MAJOR RALLY THAT WILL TAKE US UP TO 400 ANYTIME SOON SAYS GEORGE MILLINGSTANLEY A SENIOR PRECIOUSMETALS ANALYST WITH LEHMAN BROTHERS WE'VE SEEN 400 ALREADY THIS YEAR THANK YOU VERY MUCH AND TO SEE IT AGAIN MIGHT BE A LITTLE RICH I'D HAVE TO SEE NOT JUST MORE SHORT COVERING BUT FRESH LONG POSITIONS COMING INTO THE MARKET BEFORE I REVISED MY VIEW TO THE UPSIDE ADDS DENISE GIORDANO SENIOR GOLD TRADER FOR SWISS BANK IN NEW YORK I DON'T SEE THE PHYSICAL DEMAND TO WARRANT A RETURN TO 400 THIS YEAR BUT WE COULD GET UP TO 385 MOREOVER THESE SKEPTICS POINT OUT GOLD'S TRADITIONAL ROLE AS A HEDGE AGAINST INFLATION HAS BEEN MADE ACADEMIC FOR NOW BY BOTH A RECENT BARRAGE OF US DATA SHOWING SLOW GROWTH AND BENIGN PRICE INCREASES ACROSS MUCH OF THE ECONOMY AND BY CONTINUED WEAKNESS IN THE EUROPEAN AND JAPANESE ECONOMIES INVESTORS GENERALLY ARE LESS THAN ENAMORED WITH PRECIOUS METALS OR FOR THAT MATTER WITH TANGIBLE ASSETS RIGHT NOW SAYS BERNARD SAVAIKO A SENIOR COMMODITY ANALYST WITH PAINEWEBBER IN NEW YORK INSTEAD THEY HAVE A VORACIOUS APPETITE FOR DEFLATIONARY HEDGES SUCH AS BONDS AND BONDMUTUAL FUNDS HE ADDS GOLD AND BOND PRICES TEND TO MOVE IN OPPOSITE DIRECTIONS INVESTORS DON'T HAVE REASON TO CHASE THESE MARKETS ON STRENGTH WHICH IS WHAT OCCURS IN A BULL MARKET WHEN THERE'S DESPERATION TO GET ON BOARD AT ANY PRICE MR SAVAIKO SAYS HERE THERE ARE TAKERS ONLY IF THE PRICE IS RIGHT INDEED TRADERS SAY A KEY QUESTION IS WHETHER BIG NEW YORKBASED COMMODITY FUNDS OR MANAGED POOLS OF INVESTORS' MONEY SEE GOLD AS UNDERVALUED THE SAME HOLDS TRUE FOR PRICESENSITIVE ASIAN JEWELERS BOTH GROUPS FOLLOWING SOME LOUDLY TRUMPETED INVESTMENTS IN GOLD BY SPECULATORS GEORGE SOROS AND SIR JAMES GOLDSMITH SERVED AS THE TWIN ENGINES POWERING GOLD'S IMPRESSIVE BUT SHORTLIVED RALLY FROM SEVENYEAR LOWS OF 327 IN THE SPRING TO THREEYEAR HIGHS IN EARLY AUGUST THE PEAK OF THAT RALLY CAME WHEN GOLDFUTURES PRICES CLIMBED TO 414 IN EARLY AUGUST AMID EUROPEAN CURRENCY TURMOIL BUT WITH A QUICKLY ARRANGED RESOLUTION OF THAT CURRENCY CRISIS GOLD FUTURES BEGAN A DRAMATIC RETRACEMENT BEFORE CASCADING BACK TO MARCH PRICE LEVELS GOLD FUTURES STABILIZED AT 343 ON SEPT 13 TWO DAYS AFTER THE WORLD CRUDEOIL MARKET STABILIZED AMID TALKS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES SIGNIFICANTLY GOLD PRICES BEGAN TO RESUME THEIR EARLIER CLIMB WITH MIDDLE EASTERN BUYING OF SILVER AND THEN GOLD CITED BY A NUMBER OF ANALYSTS AS A MAJOR IMPETUS TO THE PRICE MOVES THOSE UPWARD MOVES WERE ACCELERATED WHEN NEW YORK COMMODITY FUNDS WHICH GENERALLY HAD BEEN BETTING ON FURTHER PRICE DECLINES WERE FORCED TO COVER THEIR POSITIONS MR SAVAIKO THE PAINEWEBBER ANALYST SAYS THAT LARGE INVESTORS WILL REMAIN GENERALLY BEARISH TO NEUTRAL ON GOLD THAT STANCE HE ASSERTS WILL DWARF SOCALLED BULLISH SUPPLY AND DEMAND CONSIDERATIONS SUCH AS A WIDELY FORECAST MODERATE INCREASE IN MINE OUTPUT AND ANY GRADUAL RISE IN CHINESE DEMAND INVESTOR ACTION IS WHAT DETERMINES THE GOLD PRICE AND IT TENDS TO BE FEAST OR FAMINE HE SAYS EITHER INVESTORS ARE ENTHUSIASTIC ABOUT THE MARKET AND WILL ADD TO EXISTING POTIONS OR IF DISENCHANTED THEY WILL NOT ONLY REFRAIN FROM BUYING BUT ACTUALLY UNLOAD EXISTING HOLDINGS I THINK WE'LL PROBABLY SEE GOLD BELOW 340 BY YEAR'S END HE SAYS 9310190064 931019 SMALLPLANE MAKERS MAY GET A BIG LIFT FROM CONGRESS BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL LAWSUITS HELPED SEND THE SMALLPLANE BUSINESS INTO A DEATH SPIRAL NOW CONGRESS MAY PASS A LAW THAT AVERTS A CRASH AIRPLANE MAKERS HAVE HIGH HOPES FOR A BILL THAT WOULD ELIMINATE THEIR CRASH LIABILITY FOR PLANES MORE THAN 15 YEARS OLD UNDER THE BILL MANUFACTURERS OF PLANES OVER 15 YEARS OLD COULDN'T BE SUED IF THE PLANES CRASHED WHEN AN AIRPLANE IS 15 YEARS OLD THEN YOU KNOW IT WAS DESIGNED PROPERLY AND BUILT PROPERLY IF IT CRASHES IT'S NOT THE FAULT OF THE AIRPLANE AT THAT POINT SAYS ROBERT CROWLEY CHIEF EXECUTIVE OF AMERICAN GENERAL AIRCRAFT CORP OF GREENVILLE MISS WHICH BUILDS ABOUT 80 PLANES A YEAR ALTHOUGH THERE HAVE BEEN OTHER LEGISLATIVE ATTEMPTS TO REVIVE THE SMALLPLANE BUSINESS THIS ONE HAS SOME HEAVYWEIGHT SUPPORT MORE THAN HALF THE MEMBERS OF THE HOUSE OF REPRESENTATIVES HAVE ALREADY SIGNED ON AS COSPONSORS LABOR PILOT GROUPS AND THE INDUSTRY ALL BACK IT HOWEVER TRIAL LAWYERS COULD BE MAJOR OPPONENTS WITH HEARINGS BEFORE THE HOUSE PUBLIC WORKS COMMITTEE'S SUBCOMMITTEE ON AVIATION DUE TO START OCT 27 I'M MORE OPTIMISTIC THAN I'VE BEEN IN THE PAST SAYS US REP DAN GLICKMAN ONE OF THE MAIN SPONSORS OF THE BILL THE KANSAS DEMOCRAT COMES FROM WICHITA WHERE MARKET LEADERS CESSNA AND BEECH MAKE THEIR PLANES THE GENERALAVIATION INDUSTRY HAS LONG BEEN EXHIBIT A WHEN PEOPLE COMPLAIN ABOUT THE LITIGATION EXPLOSION A BROOKINGS INSTITUTION STUDY OF LITIGATION EFFECTS CONCLUDED THAT GENERAL AVIATION WAS THE MOST SEVERELY AFFECTED OF ANY INDUSTRY STUDIED US PRODUCTION OF GENERALAVIATION AIRCRAFT FELL TO 880 PLANES LAST YEAR FROM A PEAK OF 17811 IN 1978 AND SOME COMPANIES LEFT THE BUSINESS COMPLAINING BITTERLY ABOUT LITIGATION COSTS ARTHUR ALAN WOLK A LAWYER FROM PHILADELPHIA WHO HAS WON SEVERAL BIG JUDGMENTS FOR CRASH VICTIMS SAYS THE DECLINE OF THE SMALLPLANE BUSINESS REFLECTS MANAGEMENT ERRORS INFLATED COSTS DISAPPEARING TAX CREDITS AND THE LUXURY TAX THAT WAS REPEALED THIS YEAR NOT PRODUCTLIABILITY LAWSUITS HE SAYS THE BILL WOULD BE A RIDICULOUS WINDFALL FOR THE INDUSTRY PLANE MAKERS SAY THE BILL WOULD ALLOW THE REBIRTH OF A MORIBUND INDUSTRY CESSNA AIRCRAFT A TEXTRON INC UNIT THAT STOPPED BUILDING PISTONENGINE PLANES IN 1986 SAYS IT WOULD START PRODUCTION PLANNING THE DAY THE BILL PASSES AND COULD HIRE 1500 WORKERS AND BUILD UP TO 2000 SMALL PLANES IN 1996 CESSNA ONCE BUILT AS MANY AS 9000 PISTONENGINE PLANES A YEAR IN WICHITA NOW IT MAKES JUST 130 BUSINESS JETS A YEAR PIPER AIRCRAFT CORP WHICH ONCE MADE AS MANY AS 5200 PLANES A YEAR NOW IS STRUGGLING TO EMERGE FROM BANKRUPTCY PROCEEDINGS AFTER MAKING 113 SMALL PLANES LAST YEAR CHUCK SUMA PRESIDENT OF PIPER WHICH IS IN VERO BEACH FLA BELIEVES THAT THE BILL'S PASSAGE WILL CAUSE INSURANCE COMPANIES TO EVENTUALLY FEEL COMFORTABLE ABOUT INSURING FLEETS UNDER 15 YEARS OLD AND WHEN THAT HAPPENS HE SAYS RATES WILL COME DOWN AND WE'LL BE ABLE TO SPEND THE MONEY ON RESEARCH AND DEVELOPMENT THE COMPANIES COMPLAIN THAT THEY ARE AUTOMATICALLY SUED IN EVERY CRASH BECAUSE THEY HAVE DEEP POCKETS AND BUILD LONGLIVED PRODUCTS FOR EXAMPLE RAYTHEON CORP'S BEECH AIRCRAFT UNIT WAS SUED IN 1989 WHEN A 19YEAROLD BEECHCRAFT CRASHED INTO A TREE THE PILOT WAS FLYING INTO A SMALL AIRPORT IN KENTUCKY AT DUSK AND DUCKED UNDER CLOUDS TO VIEW THE FIELD DESPITE WARNINGS FROM THE GROUND GOVERNMENT INVESTIGATORS BLAMED PILOT ERROR BUT BEECH SAYS IT SPENT MORE THAN 100000 IN LEGAL FEES BEFORE THE CASE WAS DISMISSED PRIVATELY HELD AMERICAN GENERAL IS ONE OF THE FEW REMAINING MAKERS OF PLANES THAT COST UNDER 150000 MR CROWLEY SAYS LIABILITY INSURANCE AT ABOUT 10000 A PLANE IS THE SECONDMOST EXPENSIVE COMPONENT AFTER THE ENGINE LARGER MANUFACTURERS ARE EVEN MORE EAGER TO HAVE THE LAW CHANGED RUSS MEYER PRESIDENT OF CESSNA SAYS A HIGH PERCENTAGE OF THE 120000 PLANES WE BUILT IN THE LAST 60 YEARS ARE STILL FLYING AS LAWSUITS ARE FILED CONCERNING OLD PLANES THE RISING COSTS ARE TACKED ONTO THE LIABILITY INSURANCE RATES FOR NEW PLANES BEECH'S LAWYERS ONCE ANALYZED LAWSUITS COVERING 203 CRASHES THAT OCCURRED IN THE MID1980S FEDERAL INVESTIGATORS BLAMED WEATHER FAULTY MAINTENANCE AND AIRCONTROL ERRORS BUT NEVER BEECH'S DESIGN OR MANUFACTURING AS THE CAUSE OF THE CRASH BUT PLAINTIFFS' ATTORNEYS CLAIMED 100 OF THOSE CRASHES WERE THE FAULT OF THE MANUFACTURER SAYS ROBERT MARTIN A WICHITA LAWYER WHO FREQUENTLY DEFENDS BEECH EACH CASE COST BEECH AN AVERAGE OF 530000 EVEN THOSE THAT WERE DISMISSED COST 100000 TO 200000 APIECE TO PREPARE MR MARTIN SAYS MR WOLK THE PLAINTIFFS' ATTORNEY WHO HAS WON PLANECRASH JUDGMENTS AS HIGH AS 1073 MILLION SAYS THE BILL'S PASSAGE MAY HELP MANUFACTURERS BUT WILL HURT PILOTS FLIGHT SCHOOLS MAINTENANCE SHOPS AND AIRFIELDS PILOTS AND GROUND OPERATORS SHOULD GET SIGNIFICANTLY HIGHER INSURANCE LIMITS BECAUSE PASSENGERS AND CUSTOMERS WILL BE SUING THEM FOR LARGER AMOUNTS OF MONEY HE SAYS NOBODY EXPECTS THE SMALLPLANE BUSINESS TO BOUNCE BACK TO THE LEVEL OF 15 YEARS AGO WHEN GENEROUS TAX CREDITS AND A GROWING NUMBER OF STUDENT PILOTS CREATED A SEEMINGLY EVEREXPANDING MARKET MOST OF THE PLANES SOLD THEN WERE UNDER 50000 APIECE TODAY THE LOWEST PRICED PLANE FROM A MAJOR MANUFACTURER IS THE PIPER CUB A CLOTHCOVERED TWOSEATER THAT GOES FOR 85000 MR SUMA OF PIPER SAYS THE CHANGE TO 15YEAR LIABILITY WILL ALLOW US TO STABILIZE PRICING BUT I DON'T SEE AN INDUSTRYWIDE REDUCTION CESSNA INDICATES IT HOPES TO HAVE A BASE PRICE UNDER 100000 IN FACT THE DAYS WHEN AMERICANS DREAMED OF LEARNING TO FLY AND BUYING A PLANE MAY BE GONE FOR GOOD OVER THE PAST FOUR YEARS THE NUMBER OF NEW STUDENT PILOTS HAS STEADILY DECLINED INSTRUCTIONAL HOURS FLOWN HAVE DROPPED GETTING A PILOT'S LICENSE NOW COSTS ABOUT 4500 UP FROM 1500 15 YEARS AGO AMONG THE FEW REMAINING MANUFACTURERS DEMAND ALREADY TRAILS PRODUCTION CAPACITY MOONEY AIRCRAFT CORP KERRVILLE TEXAS WHICH MAKES HIGHPERFORMANCE 200MILEPERHOUR PLANES COSTING 160000 TO 400000 HAS SEEN DECLINES IN BUSINESS FOR THE PAST THREE YEARS SAYS JEFFREY DUNBAR VICE PRESIDENT SALES PILOTS PLANE OWNERS AND SMALL MANUFACTURERS SAY THAT CESSNA'S RETURN WITH SPIFFY NEW PLANES AND A BIG PROMOTIONAL CAMPAIGN SHOULD REKINDLE CUSTOMER INTEREST AS WE RESUME PRODUCTION WE'D BE STIMULATING DEMAND SAYS PHILIP M MICHEL CESSNA'S VICE PRESIDENT MARKETING I DON'T BELIEVE INTEREST IN FLYING CAN'T BE STIMULATED IT'S AS BASIC AS A CHILD WATCHING A BIRD 9310190063 931019 MARKETING & MEDIA CAPITAL CITIES/ABC NET SURGED 259 IN THIRD QUARTER BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CAPITAL CITIES/ABC INC SAID THIRDQUARTER NET INCOME JUMPED 259 ON SUBSTANTIAL GAINS FOR THE ABC TELEVISION NETWORK RESULTING FROM A STRONGER ADVERTISING MARKET THE NETWORK REPORTED AN UNSPECIFIED OPERATING PROFIT FOR THE QUARTER FOLLOWING A SMALL OPERATING LOSS A YEAR EARLIER THE 1992 QUARTER'S RESULTS WERE HURT BY THE APPEARANCE OF THE SUMMER OLYMPICS ON A COMPETING NETWORK THE NEWS SENT CAPITAL CITIES SHARES UP 11 TO CLOSE AT 626 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE JUST SHORT OF THE ALLTIME HIGH OF 633 A SHARE PROFIT FOR THE QUARTER WAS 783 MILLION OR 475 A SHARE COMPARED WITH 622 MILLION OR 374 A SHARE A YEAR EARLIER THIRDQUARTER NET INCLUDED A PROVISION FOR INCREASED FEDERAL TAXES WITHOUT WHICH CAPITAL CITIES SAID EARNINGS WOULD HAVE BEEN 528 A SHARE OPERATING INCOME ROSE 271 TO 148 MILLION FROM 1165 MILLION A YEAR EARLIER WITH BROADCASTING OPERATING INCOME UP 425 TO 1273 MILLION AND PUBLISHING OPERATING INCOME DOWN 156 TO 305 MILLION REVENUE ROSE 71 TO 13 BILLION FROM 122 BILLION A YEAR EARLIER BROADCASTING REVENUE WAS UP 114 TO 105 BILLION FROM 9442 MILLION IN 1992 MOSTLY ON GAINS AT THE TELEVISION NETWORK THE COMPANY'S EIGHT OWNED TELEVISION STATIONS REPORTED SLIGHT GAINS FROM A YEAR EARLIER EVEN WITHOUT 1992'S HEAVY POLITICAL ADVERTISING VIDEO OPERATIONS REPORTED SUBSTANTIAL REVENUE INCREASES PRIMARILY DUE TO GROWTH AT CABLE NETWORK ESPN WHILE RADIO REVENUE INCREASED MODESTLY THE COMPANY SAID PUBLISHING REVENUE DECLINED 78 TO 2499 MILLION FROM 2711 MILLION EXCLUDING THE EFFECT OF ACQUISITIONS DISPOSITIONS AND STARTUPS PUBLISHING REVENUE ROSE 3 THE COMPANY SAID FOR THE FIRST NINE MONTHS CAPITAL CITIES' NET MORE THAN DOUBLED TO 2885 MILLION OR 1751 A SHARE FROM 1082 MILLION OR 646 A SHARE A YEAR EARLIER THE 1992 RESULTS REFLECT THE CUMULATIVE EFFECT OF ACCOUNTING CHANGES NINEMONTH REVENUE ROSE 59 TO 392 BILLION FROM 37 BILLION A YEAR EARLIER SEPARATELY THE COMPANY DECLINED TO CONFIRM OR DENY A REPORT THAT CHAIRMAN THOMAS MURPHY WILL RETURN TO THE POST OF CHIEF EXECUTIVE WHEN DANIEL BURKE VACATES THE JOB ON FEB 8 HIS 65TH BIRTHDAY MOST EXECUTIVES EXPECT MR MURPHY TO STAY BUT HE HAS NOT YET ANNOUNCED HIS SPECIFIC PLANS SAID A SPOKESWOMAN MR MURPHY TURNED THE JOB OVER TO MR BURKE IN 1990 THE COMPANY HAS BEEN GRAPPLING WITH THE SUCCESSION ISSUE FOR THE PAST YEAR WITH SEVERAL INTERNAL CANDIDATES UNDER CONSIDERATION IN JULY THE COMPANY SEEMED TO SIGNAL THAT ROBERT IGER ABC TELEVISION NETWORK GROUP PRESIDENT WAS THE LEAD CANDIDATE FOR CHIEF EXECUTIVE WHEN HE WAS ELEVATED TO THE ADDITIONAL POST OF EXECUTIVE VICE PRESIDENT OF THE CORPORATION THE MOST SENIOR EXECUTIVE UNDER MR BURKE 9310190062 931019 INTERNATIONAL BRIEF RHONEPOULENC SA FRANCE IS READY TO PRIVATIZE CHEMICAL AND DRUG GROUP CHEMICALS AND DRUG GROUP RHONEPOULENC SA PARIS BEAT OUT OIL COMPANY SOCIETE NATIONALE ELF AQUITAINE TO CARRY THE FLAG NEXT IN THE FRENCH PRIVATIZATION PARADE THE FRENCH GOVERNMENT DECIDED MONDAY THE SALE OF THE 43 OF THE COMPANY STILL OWNED DIRECTLY BY THE GOVERNMENT WILL TAKE PLACE WITHIN A FEW WEEKS MARKET CONDITIONS PERMITTING THE GOVERNMENT SAID AT CURRENT MARKET PRICES IT SHOULD YIELD ABOUT 158 BILLION FRANCS 28 BILLION THIRTYSEVEN PERCENT WILL BE SOLD THROUGH INDIVIDUAL PUBLIC OFFERINGS INSTITUTIONAL INVESTORS AND CURRENT AND FORMER RHONEPOULENC EMPLOYEES A NEGOTIATED PLACEMENT OF 6 WILL ADD TO A CORE GROUP OF STABLE SHAREHOLDERS RHONEPOULENC ALREADY A PUBLICLY TRADED COMPANY IN FRANCE WITH A NEW YORK STOCK EXCHANGE LISTED SUBSIDIARY RHONEPOULENC RORER SHOULDN'T BE A HARD SELL BUT ANALYSTS SAID THEY EXPECT THE FRENCH GOVERNMENT TO PRICE IT AT AN ENTICING DISCOUNT TO GUARANTEE SUCCESS 9310190060 931019 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 15/16 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 89 DAYS 318 90 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 253 ONE MONTH 258 TWO MONTHS 262 THREE MONTHS 273 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 303 30 DAYS 303 60 DAYS 312 90 DAYS 312 120 DAYS 312 150 DAYS 312 180 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 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 18 1993 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 661 60 DAYS 670 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 658 60 DAYS 668 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 9310190059 931019 SCULLEY BECOMES CHIEF OF SPECTRUM PLACING BET ON WIRELESS TECHNOLOGY BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JOHN SCULLEY SIGNED ON AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LITTLEKNOWN SPECTRUM INFORMATION TECHNOLOGIES INC LEAVING ONE STRUGGLING COMPANY APPLE COMPUTER INC TO TAKE THE HELM AT ANOTHER THE 54YEAROLD MR SCULLEY ASSUMES CONTROL OF A COMPANY THAT HAD RUN UP LOSSES FOR THE PAST DECADE THE COMPANY HAS COME UNDER FIRE FOR MAKING WHAT CRITICS SAY ARE INFLATED CLAIMS ABOUT ITS TECHNOLOGY PATENTS ITS SHARES WERE TEMPORARILY DELISTED FROM THE NASDAQ MARKET BUT HAVE RETURNED TO SOMETIMES VOLATILE SWINGS IN PRICE SPECTRUM'S STOCK MOREOVER HAD BEEN REGULARLY TOUTED IN A LOCAL CABLE BUSINESS SHOW HOSTED BY A LARGE COMPANY SHAREHOLDER YET IN AGREEING TO BECOME CHAIRMAN AND CEO OF SPECTRUM MR SCULLEY MAY BE SIGNALING THAT HE BELIEVES THE BIGGEST REVOLUTION IN TECHNOLOGY IN THE NEXT DECADE WILL COME NOT IN PERSONAL COMPUTERS BUT IN WIRELESS COMMUNICATIONS THE MANHASSET NY COMPANY HOLDS SEVERAL PATENTS COVERING THE ERRORFREE TRANSMISSION OF COMPUTER DATA OVER CELLULAR NETWORKS MR SCULLEY SAID HE BELIEVES HE HAS FOUND A LITTLE GEM THAT FELL IN MY LAP THE COMPANY'S CRITICS ARE WAITING TO SEE WHETHER THE GEM TURNS OUT TO BE FOOL'S GOLD SPECTRUM'S STOCK JUMPED 350 OR NEARLY 46 TO CLOSE AT 11125 IN NASDAQ TRADING YESTERDAY ON THE NEWS OF MR SCULLEY'S NEW POSITION BUT SOME RIVALS QUESTION THE ACTUAL VALUE OF SPECTRUM'S PATENTS AND THE CREDIBILITY OF THE EXECUTIVES WHO ARE RUNNING THE COMPANY I WONDER WHETHER HE DID HIS DUE DILIGENCE SAID WILLIAM ROGERS COUNSEL FOR MICROCOM CORP A DATAMODEM MAKER THAT'S FIGHTING THE PATENT SUIT SPECTRUM FILED AGAINST IT IN THE DALLAS FEDERAL COURT LAST DECEMBER MICROCOM HAS ALLEGED WHAT MR ROGERS CALLED NUMEROUS IRREGULARITIES IN SPECTRUM'S APPLICATIONS HE ADDED THAT SPECTRUM'S TECHNOLOGY ISN'T NEW AND SHOULDN'T BE PROPRIETARY BUT MR SCULLEY A SELFSTYLED VISIONARY WHO RESIGNED AS CHAIRMAN OF APPLE LAST WEEK SAID HE IS AWARE OF SPECTRUM'S TROUBLES AND THAT I TRIED TO DO MY DUE DILIGENCE IN INVESTIGATING THE COMPANY'S BACKGROUND HE SAID HE HAD A BATTERY OF LAWYERS AND TECHNICAL EXPERTS REVIEW THE PATENTS AND THE LEGAL TROUBLES OF THE COMPANY LAST SPRING ITS STOCK RAN UP WILDLY WHEN THE COMPANY TOUTED A PATENTLICENSING DEAL WITH AMERICAN TELEPHONE & TELEGRAPH CO AND CLAIMED IT WOULD MEAN HUGE NEW BUSINESS THE STOCK PLUNGED WHEN AT&T DISAVOWED THE ROSY PROJECTION I DECIDED I COULD BRING UNIQUE VALUE TO THE COMPANY MUCH LIKE BARRY DILLER WAS ABLE TO DO AT QVC THE TVSHOPPING CONCERN MR SCULLEY SAID I KNOW MY WAY AROUND HIGH TECHNOLOGY IN COMPUTERS AND TELECOMMUNICATIONS I CAN OPEN DOORS FOR THEM SPECTRUM'S PATENTS COULD APPLY TO A POTENTIALLY HUGE MARKET SUCH AS LAPTOP COMPUTERS AND PERSONAL COMMUNICATORS SUCH AS APPLE'S NEWTON BY ADDING THE ABILITY TO SEND MESSAGES FROM ANYWHERE WITHOUT ACCESS TO A PHONE LINE APPLE AND MR SCULLEY CAME UNDER HEAVY FIRE FOR NEWTON'S POOR PERFORMANCE IN HANDWRITING RECOGNITION AND TO A LESSER DEGREE FOR LIMITED COMMUNICATIONS FEATURES IN THE FIRST VERSION MR SCULLEY HOWEVER TOOK A KEEN INTEREST IN SPECTRUM WHEN THE COMPANY SHOWED HIM HOW NEWTON USING SPECTRUM TECHNOLOGY COULD ZAP HIS OWN HANDWRITTEN MESSAGE ACROSS A CELLULAR NETWORK TO A FAX MACHINE PETER CASERTA WHO WILL REMAIN AS SPECTRUM'S PRESIDENT UNDER MR SCULLEY TRAVELED TO MR SCULLEY'S GREENWICH CONN HOME WITH A COUPLE OF SPECTRUM OFFICIALS LAST MONTH SITTING AROUND HIS DININGROOM TABLE THEY HAD MR SCULLEY SEND A SCRIBBLED MESSAGE FROM HIS NEWTON TO A FAX MACHINE SOMEWHERE ELSE IN HIS HOUSE OVER THE LOCAL CELLULAR PHONE NETWORK HE WAS HOOKED THE DEVICE WORKED EVERY TIME MR SCULLEY SAID WHAT WAS SUPPOSED TO BE A ONEHOUR MEETING TURNED INTO SIX HOURS WITH MY WIFE LEEZY BRINGING US COFFEE LAST WEEK AFTER OFFICIALLY LEAVING APPLE MR SCULLEY AND HIS ATTORNEYS BEGAN INTENSE NEGOTIATIONS AIMED AT HAVING HIM JOIN SPECTRUM DANA VERRILL WHO FOUNDED SPECTRUM 10 YEARS AGO AGREED TO STEP ASIDE AS CHAIRMAN FOR MR SCULLEY AND WILL REMAIN AS A VICE PRESIDENT AND BOARD MEMBER MR VERRILL A FORMER SALESMAN FOR ELECTRONIC DATA SYSTEMS IN THE EARLY 1980S STARTED SPECTRUM IN 1982 WITH INVENTOR HARRY M O'SULLIVAN MR O'SULLIVAN WHOSE WHEREABOUTS SPECTRUM REFUSES TO DISCLOSE CAME UP WITH A PROGRAMMING METHOD OF TRANSMITTING AND RECEIVING DATA OVER WIRELESS NETWORKS THE SOFTWARE DESIGN WHICH WON A PATENT IN 1986 ALLOWS DATA TO BE SENT WITHOUT GETTING SCRAMBLED ON THE OTHER END THREE YEARS LATER THEY TOOK THE COMPANY PUBLIC THROUGH THE BACKDOOR METHOD OF MERGING SPECTRUM INTO A PUBLIC SHELL COMPANY CALLED DRY GULCH OIL & MINERALS INC ACCORDING TO SPECTRUM ATTORNEY JOHN A GARRATY JR DRY GULCH'S HOLDERS BECAME SPECTRUM'S FIRST PUBLIC OWNERS TODAY THEIR COMPANY HAS NEVER TURNED AN ANNUAL PROFIT IN MORE THAN 10 YEARS OF OPERATION IN ITS FISCAL FIRST QUARTER ENDED JUNE 30 SPECTRUM EARNED ITS FIRST PROFIT OF 410244 OR A PENNY A SHARE COMPARED WITH A LOSS OF 14 MILLION OR TWO CENTS A SHARE A YEAR EARLIER MR SCULLEY WOULDN'T SAY JUST HOW MUCH HE WILL OWN OF THE FORMER DRY GULCH HE AND MR CASERTWILL COME OUT WHEN THE COMPANY MAKES THE TERMS OF HIS EMPLOYMENT PUBLIC AT A LATER DATE 9310190058 931019 IF GATT FAILS WE ALL LOSE BY PETER SUTHERLAND PRESIDENT CLINTON SPOKE FOR MANY OF THE WORLD'S LEADERS WHEN HE TOLD THE UNITED NATIONS GENERAL ASSEMBLY A FEW WEEKS AGO THAT A STRONG GATT AGREEMENT WILL CREATE MILLIONS OF JOBS WORLDWIDE VIRTUALLY EVERY OTHER WORLD LEADER HAS EXPRESSED A SIMILAR SENTIMENT HOWEVER IT IS AN UNCOMFORTABLE FACT OF LIFE THAT WELLMEANT SPEECHES HAVE TO BE TRANSLATED INTO PRACTICAL ACTIONS AND THERE IS THE RUB THE URUGUAY ROUND OF TRADE NEGOTIATIONS IN PROGRESS FOR SEVEN YEARS COMES TO AN END ON DEC 15 AT STAKE IS NOTHING LESS THAN THE WORLD TRADING SYSTEM IF THE NEGOTIATIONS FAIL THOSE SAME WORLD LEADERS WILL BE COMMITTING ONE OF THE BIGGEST COLLECTIVE FOLLIES OF THE CENTURY AND PART OF THE FALLOUT FROM THAT FOLLY COULD BE THE DASHING OF HOPES FOR MANY COUNTRIES IN DIFFICULT STAGES OF TRANSITION IT WOULD BE CRUEL IRONY IF FOLLOWING THE COLLAPSE OF THE IRON CURTAIN THE US AND THE EUROPEAN COMMUNITY WERE UNABLE TO KEEP IN PLACE A SECURE AND EFFECTIVE TRADING SYSTEM THE FUTURE OF THE WORLD'S NEW DEMOCRACIES COULD BE AT STAKE IF THEY ARE MADE TO FEEL ISOLATED ECONOMICALLY THEN THEIR VOTERS MAY BE TEMPTED TO CONCLUDE THAT THE OLD WAYS WERE IN FACT BETTER AND LESS PAINFUL HANNA SUCHOCKA THE DEPARTING PRIME MINISTER OF POLAND HAS EXPRESSED HERSELF VERY FORCIBLY ON THE UNDERMINING OF HER ECONOMIC REFORMS BY WESTERN PROTECTIONISM AND THE CONSEQUENT ATTRACTION OF POLISH VOTERS TO ECONOMIC CONSERVATISM IN RUSSIA THE WEST'S NIGGARDLY OFFERS OF A LITTLE EXTRA MARKET ACCESS FOR RUSSIAN GOODS COME NOWHERE CLOSE TO FITTING THE BILL RUSSIA POLAND AND THE OTHER EMERGING EUROPEAN DEMOCRACIES ARE NOT ALONE THERE ARE MANY COUNTRIES IN ASIA LATIN AMERICA AND AFRICA WHOSE DEMOCRATIC REFORMS HAVE GONE HANDINHAND WITH THE OPENING OF MARKETS AND THE DISENGAGEMENT OF GOVERNMENT FROM INDUSTRY AND COMMERCE MANY OF THESE NEW DEMOCRACIES ARE FRAGILE POLITICALLY AND ECONOMICALLY THEIR LEADERS HAVE OFTEN ACTED WITH GREAT COURAGE IN THEIR POLICIES OF ECONOMIC LIBERALIZATION WHAT THESE COUNTRIES NEED IS FULL ASSIMILATION INTO THE MULTILATERAL TRADING SYSTEM NOT REJECTION BY THE MOST SUCCESSFUL BENEFICIARIES OF THAT SYSTEM ALL THIS IS TO SAY THAT THE URUGUAY ROUND IS ABOUT A LOT MORE THAN FARM SUBSIDIES ANTIDUMPING DUTIES AND TV FILM QUOTAS IT IS ABOUT MORE THAN A BOOST TO ECONOMIC GROWTH WHICH IT UNDOUBTEDLY WOULD BE AND IT IS ABOUT MORE THAN THE FIGHT TO CREATE NEW JOBS WHICH IT WOULD UNDOUBTEDLY ASSIST EVEN THE BENEFITS TO CONSUMERS WHICH ARE EASY TO SEE DO NOT DO JUSTICE TO ITS IMPORTANCE MOST CRUCIALLY IT BEARS DEEPLY ON THE WAY IN WHICH NATIONS ARE GOING TO INTERACT IN THE WIDEST SENSE IN THE DECADES TO COME THE URUGUAY ROUND IS THE MOST COMPREHENSIVE AND COMPLEX MULTILATERAL ECONOMIC NEGOTIATION EVER UNDERTAKEN THERE ARE MANY REASONS WHY IT WAS LAUNCHED BUT THE MOST PERSUASIVE AND FRANK ONE IS THAT THE MULTILATERAL SYSTEM THAT HAD HELPED CREATE SO MUCH PROSPERITY IN THE '50S '60S AND '70S WAS AND IS COLLAPSING WE HAVE SEEN THE SYSTEM UNDERMINED BY NEW FORMS OF PROTECTIONISM LARGESCALE AGRICULTURAL SUBSIDIES AND BILATERAL MARKETSHARING AGREEMENTS IN THE INDUSTRIAL SECTOR FOR INSTANCE WITH WHICH GATT HAS BEEN UNABLE TO COPE AT THE SAME TIME AND PARTLY BECAUSE OF GATT'S INITIAL SUCCESS TRADE HAS BECOME FAR MORE IMPORTANT IN MOST ECONOMIES RECENTLY ACCOUNTING FOR ALMOST ALL NET EMPLOYMENT GROWTH IN THE G7 COUNTRIES AND ENORMOUSLY MORE COMPLEX WITH THE INTERCHANGE OF GOODS SERVICES AND CAPITAL TAKING PLACE AMONG A LARGER AND LARGER NUMBER OF ECONOMIES IN EFFECT THE TRADING SYSTEM THAT PROVIDED ONE OF THE PILLARS OF POSTWAR RECONSTRUCTION AND RECOVERY IS FALLING BEHIND THE REALITIES OF TRADE AND INVESTMENT IN THE 1990S IT HAS STRUGGLED FOR A DECADE OR SO TO KEEP ON TOP OF A GROWING HEAP OF DUBIOUS NATIONAL TRADE PRACTICES PARTICULARLY IN THE INDUSTRIAL COUNTRIES AND TO RESOLVE DISPUTES USING A BODY OF TRADE RULES THAT ARE INCREASINGLY IRRELEVANT TO THE PRACTICAL EXPERIENCE OF TRADERS THESE SHORTCOMINGS HAVE BEEN ESPECIALLY EVIDENT TO THE MANY COUNTRIES THAT HAVE PURSUED AUTONOMOUS PROGRAMS OF ECONOMIC AND TRADE LIBERALIZATION IN ANTICIPATION OF NEW MARKET ACCESS OPPORTUNITIES AND A CREDIBLE RULEBASED SYSTEM OF SUPPORT THE AGENDA OF THE URUGUAY ROUND HAS THEREFORE BEEN BOTH BROAD AND DEEP AN ESSENTIAL PART OF THE NEGOTIATION HAS CONCERNED THE TRADITIONAL WORK OF GATT REDUCING TARIFFS AND OTHERWISE IMPROVING ACCESS TO MARKETS FOR MERCHANDISE GOODS THE MARKET ACCESS PACKAGE IS VITAL TO INDIVIDUAL FIRMS EVERYWHERE AND ESPECIALLY TO THOSE IN COUNTRIES IN THE PROCESS OF ECONOMIC REFORM THE G7 SUMMIT IN TOKYO LED TO THE BEGINNINGS OF A PACKAGE BUT WE ARE URGENTLY IN NEED NOW OF FURTHER POLITICAL DECISIONS TO IMPROVE IT ESPECIALLY TO THE BENEFIT OF NONINDUSTRIALIZED COUNTRIES FOR MANY OF WHICH THE TOKYO DECISIONS WERE OF NO RELEVANCE TO ENSURE THAT OUR AMBITIOUS OBJECTIVES ARE NOT ONLY MET BUT SURPASSED IT IS THE NEW AGENDA THAT IS OF SPECIAL LONGTERM SIGNIFICANCE FOR A START WE NOW HAVE VIRTUAL AGREEMENT ON THE FIRST MULTILATERAL TRADE RULES FOR SERVICES IN ADDITION TO THE NEW RULES WHICH WOULD IN PRINCIPLE COVER SOME 3 TRILLION TO 4 TRILLION IN SERVICES A YEAR WE ARE AT AN ADVANCED STAGE IN NEGOTIATING AN INITIAL PACKAGE OF MARKET LIBERALIZATION SECOND ON THE NEW AGENDA WE HAVE THE MOST COMPREHENSIVE AGREEMENT EVER NEGOTIATED ON INTELLECTUAL PROPERTY IT MEANS THAT FOR THE FIRST TIME THERE WILL BE GLOBALLY ACCEPTED STANDARDS FOR PATENTS COPYRIGHTS TRADE NAMES AND MANY OTHER INTELLECTUAL PROPERTY RIGHTS THE MEANS TO ENFORCE THEM AT THE NATIONAL LEVEL AND THE OPPORTUNITY TO RESOLVE PROBLEMS THROUGH A MULTILATERAL DISPUTE SETTLEMENT SYSTEM THIS AGREEMENT WILL BENEFIT MANY COMPANIES IN THE HIGHTECHNOLOGY FASHION AND AUDIOVISUAL SECTORS AMONG COUNTLESS OTHERS THE NEW AGENDA ALSO INCLUDES SECTORS THAT HAVE NOT BEEN PROPERLY ADDRESSED IN PREVIOUS TRADE ROUNDS FOR INSTANCE AGRICULTURE AND TEXTILES A VARIETY OF OTHER AGREEMENTS WILL LEAD TO A GENERAL TOUGHENING OF MULTILATERAL TRADE RULES WHILE A MORE EFFECTIVE AND EFFICIENT DISPUTE SETTLEMENT SYSTEM WILL GIVE ALL GOVERNMENTS THE OPPORTUNITY TO SECURE REDRESS TO BILATERAL TRADE PROBLEMS AND GOOD REASON TO RENOUNCE UNILATERALISM CLEARLY HOWEVER THE URUGUAY ROUND IS NOT AN AGREEMENT BASED ON THE LOWEST COMMON DENOMINATOR IT IS IN MANY WAYS EVEN MORE AMBITIOUS THAN COULD HAVE BEEN IMAGINED WHEN IT WAS LAUNCHED IN 1986 THE JOB OF REFORMING THE TRADING SYSTEM HAS BECOME MORE COMPLEX AND URGENT AS THE NEGOTIATION HAS PROCEEDED IT SHOULD ALSO BE RECOGNIZED THAT THE RESULTS OF THE URUGUAY ROUND ARE LARGELY THERE FOR THE TAKING WE HAVE A NUMBER OF SERIOUS POLITICAL PROBLEMS TO OVERCOME AND SOME VERY INTENSIVE NEGOTIATIONS AHEAD OF US BUT WE ARE VERY CLOSE INDEED AND THAT MEANS IN TURN WE HAVE A LOT TO LOSE IF THE JOB IS NOT DONE BY DEC 15 FAILURE MEANS WE LOSE EVERYTHING THERE WILL BE NO INTELLECTUAL PROPERTY AGREEMENT TO BE SALVAGED FROM THE WRECK SERVICES COMPANIES WILL HAVE TO FORGET THE NEW OPPORTUNITIES THEY HAD HOPED FOR AND MANUFACTURERS SEEKING NEW MARKETS WILL BE LEFT TRYING TO HANG ON TO WHAT THEY HAVE THAT IS PROBABLY THE UP SIDE OF A FAILURE THE DOWN SIDE IS A RAPID EROSION OF THE EXISTING SYSTEM A GATHERING STORM OF UNRESOLVABLE TRADE DISPUTES A VICIOUS CIRCLE OF NEW PROTECTIONIST ACTIONS BY GOVERNMENTS AND A DOWNTURN IN GLOBAL ECONOMIC PROSPECTS WHO WILL BE THE BIG LOSERS CONSUMERS EXPORT INDUSTRIES THE UNEMPLOYED THE YOUNG LOOKING FOR JOBS THE DEVELOPING COUNTRIES AND TO RETURN TO MY STARTING POINT RUSSIA AND THE OTHER COUNTRIES HE PROCESS OF ECONOMIC AND POLITICAL REFORM THERE ARE THOSE WHO SAY AND I HEAR IT ON BOTH SIDES OF THE ATLANTIC THAT ALL WOULD BE WELL IF WE JUST SETTLED FOR A MINIPACKAGE OR SOME ILLDEFINED PARTIAL AGREEMENT ON DEC 15 IT IS NOT GOING TO HAPPEN THE ROUND IS A COHESIVE WHOLE IF YOU EXTRACT ONE ELEMENT YOU DESTROY THE BALANCE AND ONE GROUP OR OTHER WILL WALK AWAY FROM THE NEGOTIATING TABLE EVERY ELEMENT OF THE ROUND REPRESENTS THE ESSENTIAL NATIONAL INTERESTS OF SOMEONE OTHERS SAY THAT IF THE ROUND FAILS THEY CAN FALL BACK ON NAFTA THE EUROPEAN COMMUNITY OR SOME SORT OF ECONOMIC INTEGRATION FOR THE PACIFIC BASIN AGAIN THIS IS SELFDELUSION ECONOMIC BLOCS EITHER REMAIN OPEN WITHIN THE MULTILATERAL TRADING SYSTEM IF THAT SYSTEM IS ALIVE AND HEALTHY OR THEY TURN INWARD AND BECOME FORTRESSES IF IT IS THE LATTER THEN THE PROSPECTS FOR LONGTERM GROWTH AND JOB CREATION ARE EVEN INSIDE THE FORTRESS DOOMED AND IF THE RESPONSE TO A FAILED ROUND IS REGIONALISM WHERE WILL RUSSIA FIT IN WHERE WILL THE REST OF EASTERN AND CENTRAL EUROPE OR CHINA BE TO WHOM DO THE COUNTRIES OF AFRICA LOOK AND CAN THE NATIONS OF LATIN AMERICA REALLY EXPECT TO BE WELCOMED WITH OPEN ARMS BY THE MEMBERS OF A PROTECTIONIST NAFTA WE ARE TALKING HERE ABOUT MOST OF HUMANITY BEING LEFT OUT IN THE COLD THE GOVERNMENTS OF EUROPE THE US AND JAPAN AND ABOVE ALL THEIR LEADERS CARRY A HEAVY RESPONSIBILITY TO MAKE THE RIGHT DECISIONS BETWEEN NOW AND DEC 15 THEY CAN LISTEN TO THEIR DOMESTIC LOBBIES AND CONSIDER ONLY THE POLITICAL POPULARITY POLLS OR THEY CAN MAKE DECISIONS THAT WILL BENEFIT THEIR OWN ECONOMIES DIRECTLY AND GIVE A BOOST TO THE CHANCES FOR SUCCESSFUL ECONOMIC AND DEMOCRATIC REFORMS EVERYWHERE I FIRMLY BELIEVE THAT THEIR PLACES IN HISTORY AND THE FUTURE SECURITY OF THE WORLD DEPEND UPON THIS RESOLUTION MR SUTHERLAND IS DIRECTORGENERAL OF GATT 9310190057 931019 CORRECTIONS & AMPLIFICATIONS OVERALL CONSUMER PRICES FOR SEPTEMBER WERE FLAT YESTERDAY'S WHAT'S NEWS COLUMN INCORRECTLY STATED THAT OVERALL CONSUMER PRICES ROSE 01 CR BARD INC AS PART OF A 61 MILLION SETTLEMENT HAS AGREED TO PAY THE US GOVERNMENT 305 MILLION TO SETTLE THE GOVERNMENT'S CIVIL CLAIMS INVOLVING HEART CATHETERS AN ARTICLE YESTERDAY INCORRECTLY REPORTED THAT BARD HAD AGREED TO SET UP A SETTLEMENT FUND FOR CIVIL DAMAGE CLAIMS WEIRTON STEEL CORP PLANS TO INCREASE ITS SHARES OUTSTANDING BY 60 MILLION TO A TOTAL OF 90 MILLION OF THE ADDITIONAL 60 MILLION SHARES 30 MILLION WOULD BE SET ASIDE FOR EMPLOYEE BENEFITS PLANS AND 30 MILLION COULD BE ISSUED TO THE PUBLIC AN ARTICLE YESTERDAY INCORRECTLY STATED THAT THE STEELMAKER PLANS TO DOUBLE ITS NUMBER OF AUTHORIZED SHARES OUTSTANDING TO 60 MILLION 9310190056 931019 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY CHRISTOPHER CONTE MERGER MANIA HITS THE UNION SECTOR AS WELL AS CORPORATE AMERICA TRYING TO KEEP PACE WITH THE EVOLVING INFORMATIONSERVICES INDUSTRY THE COMMUNICATIONS WORKERS OF AMERICA MOVES TO COMBINE WITH THE NATIONAL ASSOCIATION OF BROADCAST EMPLOYEES AND TECHNICIANS IT ABSORBED THE INTERNATIONAL TYPOGRAPHICAL UNION EARLIER SOME ADVOCATE JOINING THE UNITED MINE WORKERS AND THE OIL CHEMICAL AND ATOMIC WORKERS IN A MEGAUNION MERGERS HELP TRIM THE AFLCIO TO 86 MEMBER UNIONS DOWN FROM 142 IN 1955 NOW THE RETAIL WHOLESALE AND DEPARTMENT STORE UNION IS MERGING WITH THE UNITED FOOD AND COMMERCIAL WORKERS THE ALLIED INDUSTRIAL WORKERS COMBINED LAST MONTH WITH THE UNITED PAPER WORKERS AND THE INTERNATIONAL LADIES GARMENT WORKERS AND THE AMALGAMATED CLOTHING AND TEXTILE WORKERS LAUNCH EXPLORATORY MERGER TALKS ARTHUR COIA PRESIDENT OF THE LABORERS INTERNATIONAL UNION SAYS THE US SHOULD WEIGH EUROPE'S EXAMPLE EACH COUNTRY THERE HAS ONLY ABOUT 15 UNIONS TEACHER TALKS THE TWO BIG SCHOOLEMPLOYEE UNIONS AGAIN EXPLORE MARRIAGE THE NATIONAL EDUCATION ASSOCIATION AND THE AMERICAN FEDERATION OF TEACHERS HAVE MORE IN COMMON THAN EVER THE NEA ORIGINALLY A PROFESSIONAL GROUP NOW BARGAINS IN MANY STATES THE AFT PART OF THE AFLCIO NO LONGER FOCUSES SO EXCLUSIVELY ON BREADANDBUTTER ISSUES THE TWO HAVE BEEN COOPERATING MORE ON LEGISLATIVE ISSUES AND HAVE EVEN MERGED IN SAN FRANCISCO A COMBINED UNION WOULD BOAST 29 MILLION MEMBERS GIVING TEACHERS ENORMOUS CLOUT ESPECIALLY IN WRINGING EDUCATION MONEY OUT OF WASHINGTON SAYS RUTGERS UNIVERSITY ECONOMIST LEO TROY BUT DAVID DENHOLM PRESIDENT OF PUBLIC SERVICE RESEARCH FOUNDATION BELIEVES THE TALKS REFLECT UNION WEAKNESS HE SAYS THE NEA FEELS THREATENED BY EDUCATIONALREFORM EFFORTS CAFETERIA PLANS MAY BE OBSOLETE UNDER THE CLINTON HEALTH PROPOSAL SO SAYS DEPUTY TREASURY SECRETARY ROGER ALTMAN THE PLANS LET INDIVIDUAL WORKERS CHOOSE THEIR OWN MIX OF BENEFITS AND PAY FOR THEM WITH PRETAX DOLLARS BUT THE HEALTH PROPOSAL WOULD PRESCRIBE A STANDARD BENEFITS PACKAGE FOR EVERYONE AND REQUIRE EMPLOYEES TO PAY FOR ENHANCEMENTS WITH AFTERTAX DOLLARS THAT COULD FORCE COMPANIES TO LIMIT THE PLANS TO NONHEALTH BENEFITS SUCH AS DEPENDENT CARE WE'D HAVE TO RUN SOME SORT OF LESSER PLAN SAYS BARBARA FAILING A VICE PRESIDENT FOR SAN FRANCISCOBASED POTLATCH CORP BUT SINCE MOST CAFETERIA PLANS PROVIDE LESS HEALTH COVERAGE THAN THE ADMINISTRATION'S PACKAGE REQUIRING THEM TO PAY FOR BROADER HEALTH COVERAGE MAY PROMPT THEM TO DROP OTHER BENEFIT OPTIONS ALTOGETHER WARNS STEPHEN COOK SPOKESMAN FOR THE EMPLOYERS COUNCIL ON FLEXIBLE COMPENSATION HOW WILL EMPLOYEES REACT SURVEY AFTER SURVEY SHOWS PEOPLE WILL GIVE UP BENEFITS IN RETURN FOR GREATER CHOICE MR COOK SAYS CLOTHING MANUFACTURERS WIN UNION AGREEMENT TO CONTRACT WITH NONUNION SHOPS MOSTLY OVERSEAS FOR UP TO 10 OF THEIR PRODUCTION THE COMPANIES PROMISE IN TURN TO PROVIDE CERTAIN INVESTMENT AND JOB GUARANTEES AND ADHERE TO INTERNATIONAL LABOR STANDARDS UNION PRESIDENT JACK SHEINKMAN SAYS THE PACT WILL ENABLE DOMESTIC PRODUCERS TO OFFER A FULL RANGE OF PRODUCTS NOT JUST EXPENSIVE ONES DOWNWARD SPIRAL A STUDY OF 6500 LAIDOFF PENNSYLVANIA WORKERS FINDS THAT FIVE YEARS LATER THEY WERE EARNING AN AVERAGE 25 LESS THAN THEY HAD BEEN PREVIOUSLY LOSSES WERE GREATER AMONG WORKERS LAID OFF BY BIG FIRMS IN UNIONIZED INDUSTRIES AND AMONG THOSE LIVING IN AREAS WITH HIGH JOBLESS RATES ECONOMISTS LOUIS JACOBSON ROBERT LALONDE AND DANIEL SULLIVAN FIND WHERE ARE THE JOBS THREE INDUSTRIES THAT REPRESENT ONLY ONEFIFTH OF PRIVATESECTOR EMPLOYMENT HEALTH CARE TEMPORARY HELP AND RESTAURANTS ACCOUNTED FOR 60 OF THE PRIVATESECTOR JOBS CREATED IN THE PAST YEAR ACCORDING TO MERRILL LYNCH ECONOMISTS DONALD STRASZHEIM AND BRUCE STEINBERG MINDING MANNERS COMPANIES SEEK BETTERBEHAVED EMPLOYEES GANNETT MEDIA GROUP TOOK SENIOR EXECUTIVES TO A RESTAURANT TO TEACH THEM SUCH THINGS AS HOW TO ORDER WINE AND WHEN TO USE WHICH FORK IF YOU CAN'T HANDLE A FORK AND SPOON HOW ARE YOU GOING TO HANDLE CLIENTS' BUSINESS ASKS THE ORGANIZER SUZANNE HART SAMPLE NOW A SENIOR VICE PRESIDENT AT CHICAGO ADVERTISING AGENCY TASSANI & PAGLIA HELLER FINANCIAL VICE PRESIDENT STEPHEN BAN SAYS PROPER ETIQUETTE CAN BE AN IMPORTANT TIE BREAKER IN DEALMAKING UNITED SERVICES AUTOMOBILE ASSOCIATION TEACHES WORKERS SUCH SKILLS AS HOW TO LISTEN TO LAND JOBS AT A NEW GREYHOUND LINES INC CUSTOMERASSISTANCE CENTER APPLICANTS HAD TO MAKE EYE CONTACT WITH THE INTERVIEWER AND SMILE AT LEAST FIVE TIMES DURING A 15MINUTE INTERVIEW THE COMPANY WILL REINFORCE GOOD MANNERS BY FITTING WORK CUBICLES WITH MIRRORS SO WORKERS CAN SEE THEMSELVES WHILE ON THE PHONE LA QUINTA MOTOR INNS SAYS MIDDLEMANAGERS WHO WERE LAID OFF BY BANKS DEFENSE CONTRACTORS AND HIGHTECH FIRMS ARE MORE ATTUNED THAN MOST APPLICANTS TO GOOD MANNERS THE CHECKOFF AFLCIO PRESIDENT LANE KIRKLAND ON CLASS WARFARE I HAVE OBSERVED THAT WE ALL GET THE SAME AMOUNT OF ICE THE RICH GET IT IN THE SUMMER AND THE POOR GET IT IN THE WINTER ASKED WHAT HE HAS IN COMMON WITH HIS ONETIME BOSS CONSERVATIVE LAWYER ROBERT BORK LABOR SECRETARY REICH RESPONDS A BEARD 9310190055 931019 REVIEW & OUTLOOK EDITORIAL SMELL THE COFFEE THOSE WHO WANT TO BELIEVE THE TAX REVOLT IS DEAD AGAIN MUST HOPE THEY HAVE A LEADER WASHINGTON GOVERNOR MIKE LOWRY THREE WEEKS BEFORE ELECTION DAY POLLS STILL SHOWED 1516 POINT LEADS FOR A PAIR OF ANTITAX MEASURES AIMED AT THWARTING MR LOWRY'S DESIGNS INITIATIVE 601 WOULD PLACE RESTRAINTS ON FUTURE STATE SPENDING GROWTH AND TAX INCREASES FORCING DIRECT VOTER APPROVAL IN MANY CIRCUMSTANCES THE CROWD IN OLYMPIA WOULD CHAFE UNDER THIS BUT WHAT IT REALLY FEARS IS INITIATIVE 602 WHICH SETS ITS OWN SUCH LIMITS BUT ALSO WOULD REPEAL THE 12 BILLION IN TAX HIKES THAT THE NEWLY ELECTED MR LOWRY GOT THROUGH HIS DEMOCRATICDOMINATED LEGISLATURE THIS YEAR NOVEMBER 1992 WAS A WIPEOUT FOR WASHINGTON REPUBLICANS THE PEOPLE REGRETTED THEIR CHOICES IN LAST YEAR'S ELECTION BEFORE THE SNOW HAD STOPPED FALLING ON MT RAINIER MORE THAN 450000 OF THEM SIGNED PETITIONS TO PUT 602 ON THE BALLOT GIVEN THAT BARELY A MILLION ARE EXPECTED TO TROOP TO THE POLLS ON NOV 2 THIS WOULD SEEM TO BODE WELL FOR TAX RELIEF BUT THE GOVERNOR AND HIS ALLIES ARE FIGHTING BACK FIERCELY STATE EMPLOYEES WHO'VE BEEN MULTIPLYING AT THE RATE OF NINE EVERY WORKING DAY SINCE 1985 ARE THE BULWARK OF THE RESISTANCE PUBLIC SCHOOL TEACHERS ARE RIGHT BESIDE THEM OF COURSE AS ARE THE POWERFUL RESOURCES OF THE UNIVERSITY OF WASHINGTON WHICH 602 SPONSORS LIKE TO NOTE HAS ONE PAYROLL SLOT FOR EVERY 19 STUDENTS THE UNIVERSITY DID MANAGE TO LOSE DOUGLASS NORTH ONE OF THE NOBEL ECONOMIC WINNERS THE JOINTLY OPERATED LEFTOFCENTER SEATTLE DAILIES ARE HAMMERING AWAY IN PRINT AT THE TAX FIGHTERS AND THE HEALTHCARE LOBBY HAS HELPED TO FINANCE THE OPPOSITION BECAUSE A REPEAL OF MR LOWRY'S SIN LEVIES WOULD THREATEN THE UNIVERSAL MEDICAL COVERAGE PROGRAM HE ALSO GOT ENACTED THE REST OF BIG BUSINESS IS SULLEN TOWARD THE GOVERNOR THOUGH IN SOME CASES WON OVER TO NEUTRAL ON THE INITIATIVES BILL GATES OF MICROSOFT WROTE A BIG CHECK TO FIGHT 602 HIS MOTHER IS A TRUSTEE OF THE UNIVERSITY SMALLBUSINESS PEOPLE ARE AT THE GRASS ROOTS OF THE TAXRELIEF DRIVE ON TOP OF RISING PAYROLL TAXES THEY SUFFERED A BIG JUMP IN THEIR GROSSRECEIPTS LEVY AND THEY LACK THE PULL TO WIN EXEMPTIONS ALSO THE POLLS SHOW THAT REAGAN DEMOCRATS ARE ALLIED IN THE REPEAL FIGHT EVEN AS SOME GOP PROFESSIONALS ARE BUYING THE ESTABLISHMENT'S ARGUMENTS IT DOESN'T PAY TO UNDERESTIMATE THE PERSUASIVE POWER OF PUBLIC SPENDING IN CALIFORNIA A SALES TAX VOTE THE SAME DAY MAY GO IN FAVOR OF BIGGER GOVERNMENT ONLY SOME HARDCORE CONSERVATIVE LEGISLATORS AND A FEW TAX REBELS HAVE STOOD UP AGAINST IT ALONG WITH THE STATE GOP BY RESOLUTION AND BACKERS ARE SNOWING THE ELECTORATE WITH THE LINE THAT IT IS ALL ABOUT POLICE AND FIREFIGHTERS IN FACT IT IS AN OMNIBUS RIDE FOR TAXPAI EMPLOYEES GENERALLY NO BATTLE AGAINST THE MONOLITHIC PROVIDER OF PUBLIC SERVICES IS EASY AS GOOD AS THE INITIATIVE TRACK RECORD ON TAXES MAY BE IT TAKES A LOT OF ANGRY ENERGY TO OVERCOME THE SPENDERS AND THEIR ALLIES IN WASHINGTON STATE THANKS IN PART TO ASSISTANCE FROM TALK RADIO THAT THRUST MAY BE MAINTAINED AND IF THE CAUSE CAN TRIUMPH IN 1993 IN A STATE AT THE CORE OF BILL CLINTON'S NEW DEMOCRATIC BASE THEN TAXES WILL HARDLY HAVE LOST THEIR MEANING IN NATIONAL POLITICS 9310190054 931019 PARKER IS SENTENCED FOR DEFRAUDING S&L LOS ANGELES A FEDERAL JUDGE SENTENCED BUSINESSMAN MICHAEL E PARKER TO MORE THAN 11 YEARS IN PRISON IN CONNECTION WITH HIS SALE OF 166 MILLION OF BOGUS LEASE CONTRACTS TO COLUMBIA SAVINGS AND LOAN ASSOCIATION MR PARKER WAS PRESIDENT OF PARKER NORTH AMERICAN CORP COSTA MESA CALIF WHICH MARKETED LEVERAGED LEASE PACKAGES TO BANKS AND THRIFTS THE FORMER EXECUTIVE WAS CONVICTED BY A FEDERAL JURY IN APRIL ON 36 FELONY CHARGES THAT INCLUDED RACKETEERING MONEY LAUNDERING AND BRIBERY THE LEASE PACKAGES SOLD TO COLUMBIA SAVINGS WERE ALLEGEDLY BASED ON EQUIPMENT THAT DIDN'T EXIST AND ON BOGUS LEASES IN WHICH PARKER NORTH AMERICAN FRAUDULENTLY INCREASED THE VALUE OF THE EQUIPMENT AND THE MONTHLY LEASE PAYMENTS MR PARKER DIVERTED MORE THAN 11 MILLION OF THE PROCEEDS TO HIMSELF AND HIS ASSOCIATES THE JURY FOUND MR PARKER 45 YEARS OLD ALSO PLEADED GUILTY IN AUGUST TO THREE OTHER ILLEGAL SCHEMES INCLUDING TWO BANK FRAUD CASES TRANSFERRED FROM FEDERAL COURTS IN LAS VEGAS AND TULSA OKLA THE THIRD CONVICTION INVOLVED FALSE STATEMENTS HE MADE TO OBTAIN A 2 MILLION LINE OF CREDIT COLUMBIA SAVINGS BEVERLY HILLS CALIF WAS SEIZED BY FEDERAL REGULATORS IN 1991 AND HAS BEEN OPERATING UNDER A RECEIVER 9310190053 931019 REVIEW & OUTLOOK EDITORIAL THE FOREIGN POLICY MESS FIRST THE GOOD NEWS IT COULD BE WORSE INSTEAD OF STREET THUGS IN MOGADISHU AND PORT AU PRINCE US FORCES COULD BE FACING THE TANK ARMIES AND NUCLEAR ARSENALS OF THE WARSAW PACT THAT NIGHTMARE NEVER CAME TO PASS INSTEAD THE FORMER COMMUNIST STATES ALL THEIR TROUBLES NOTWITHSTANDING ARE MOVING STEADILY TOWARD INTEGRATION INTO A WORLD BASED ON DEMOCRATIC CAPITALISM THIS MUST BE COUNTED AS THE CROWNING FOREIGN POLICY ACHIEVEMENT OF THE GENERATION OF LEADERS AND THINKERS WHO CAME TO POWER AFTER WORLD WAR II BUT NOW THE LEADERS WHO INHERITED THIS VICTORY CAN'T FIND A SET OF PRINCIPLES TO GUIDE THEM IN DEALING WITH THE WORLD AHEAD BOSNIA BLEEDS ON EUROPE'S DOORSTEP MOCKING A CIVILIZATION'S VALUES AND SELFCONFIDENCE SOMALIA TURNS GOOD INTENTIONS INTO AN EMBARRASSED ROUT FOR THE WORLD'S ONLY SUPERPOWER THE SUPERPOWER THEN TURNS ITS RESOURCES TO SOLVING THE MYSTERIES OF HAITI WHILE NOT ALL OF THIS IS THE FAULT OF THE CLINTON ADMINISTRATION THE IMPRESSION SPREADS THAT ITS HANDLING OF THIS VITAL FUNCTION IS APPROACHING A STATE OF MELTDOWN JIMMY CARTER'S NATIONAL SECURITY ADVISER ZBIGNIEW BRZEZINSKI PUT THE MATTER WELL ON MACNEILLEHRER LAST THURSDAY I AM CONCERNED BY THE FACT THAT AN AMERICA WHOSE POWER HAS TO BE CREDIBLE HAS BEEN DEFIED IN THE LAST FEW MONTHS BY MILOSEVIC HAS BEEN DEFIED VERY SUCCESSFULLY BY AIDID AND TODAY'S LIBERATION OF THE AMERICAN PRISONER IS NO AMERICAN VICTORY IT FOLLOWS IN THE WAKE OF AN AMERICAN CAPITULATION AND WE HAVE BEEN DEFIED BY BRIGANDS IN HAITI THIS IS DEVASTATING TO AMERICAN POWER AS BAD IT SEEMS ALSO TO BE SPLINTERING THE US FOREIGN POLICY COMMUNITY INTO RANDOM PIECES ON THE REPUBLICAN SIDE SENATE MINORITY LEADER BOB DOLE OFFERS A PROPOSAL THAT WOULD MAKE CONGRESS RESPONSIBLE FOR US INACTION WHICH WILL TAKE MR CLINTON OFF THE HOOK IF SAY HE BLUNDERS INTO A HOSTAGE CRISIS MEANWHILE THE GOP STUMBLES TOWARD 1996 WITH THE PAT BUCHANANS OF THE WORLD ACTUALLY NOT OF THE WORLD CRYING TO BRING THE BOYS HOME AND WILL THE LAST ONE INSIDE THE BORDERS PULL UP THE DRAWBRIDGE AMID THIS CONSERVATIVES LUNGE AT EACH OTHER OVER BOSNIA THE CLINTON TEAM LIBERALS WHO SLIPPED INTO THE PRESIDENCY THAT DRIFTED AWAY FROM GEORGE BUSH OBVIOUSLY HADN'T THOUGHT MUCH ABOUT THE DETAILS OF FOREIGN POLICY LEADERSHIP WORSE MR CLINTON FROZE OUT CENTRIST FOREIGNPOLICY DEMOCRATS SUCH AS SAM NUNN AND BILL BRADLEY THE BAD NEWS WAS THAT THESE LIBERALS DIDN'T HAVE A CLUE ABOUT THE COUNTRY'S FOREIGN POLICY GOALS SOME 12 YEARS OF CARPING AND SNIPING LEFT THEM NO FOUNDATION ON WHICH TO CONSTRUCT A POLICY OF THEIR OWN MR BOUTROSGHALI'S UN OFFER WAS ANY PORT IN A STORM AND OF COURSE THE LIBERAL COMMENTATORS AND POLITICIANS WHO MORALIZED THE US INTO THE SOMALI SANDS FELL LARGELY SILENT AGAINST THIS BACKDROP IT'S HARD TO BE HOPEFUL AT LEAST FOR THE NEAR TERM THE PEOPLE OF SOMALIA AND HAITI SIMPLY MAY HAVE GOTTEN INTO TROUBLE AT THE WRONG POINT IN US HISTORY IT'S FINE BY US IF TO STOP THE BLEEDING MR CLINTON WANTS TO APPLY THE GERGEN OPTION TO FOREIGN POLICY WITH SAY RICHARD LUGAR AT STATE AND SAM NUNN AT DEFENSE THE LARGER LONGTERM DANGER FOR US INTERESTS THOUGH IS INTELLECTUAL AT A MINIMUM BOTH LEADERS AND THE BODY POLITIC HAVE TO RECOGNIZE THE FUNDAMENTAL DIRECTION OF THE WORLD IN WHICH WE LIVE WE ARE SEVEN YEARS AWAY FROM A 21ST CENTURY AND THERE ISN'T GOING TO BE ANY MOAT AROUND THE US THE WORLD'S PEOPLES ARE RAPIDLY BEING INTERTWINED IN GOOD TIMES AND BAD BY TELECOMMUNICATIONS TELEVISION TRAVEL AND TRADE DESPITE SOMALIA THE PAGES OF THIS NEWSPAPER ARE OVERFLOWING WITH NEWS OF AN ASTOUNDING REVOLUTION IN TELECOMMUNICATIONS AS THE PROCESS OF COMMERCIAL AND FINANCIAL INTEGRATION ACROSS BORDERS HASTENS THE BURDEN ON NATIONAL LEADERS WILL INCREASE NOT LESSEN MEANING THAT THE NEED FOR QUALITY IN OUR LEADERSHIP WILL ALSO INCREASE THAT MEANS WE ARE GOING TO NEED EXECUTIVE LEADERSHIP IN THE US FOR THE 21ST CENTURY SOMEHOW THESE LONGTERM REALITIES HAVE TO BE SEPARATED FROM THE CLINTON PRESIDENCY'S CURRENT LEVEL OF INCOMPETENCE WE DON'T WANT THE NEXT CENTURY'S BABY ROLLING ONTO THE FLOOR WITH THE BATH WATER SPECIFICALLY AS A MATTER OF PRINCIPLE WE SHOULDN'T LET THE CURRENT TROUBLES DRIVE US INTO CRIPPLING THE PRESIDENCY FOR THE FUTURE SOMALIA MAY NOT BE IN THE NATIONAL INTEREST BUT NORTH KOREA WILL BE NAFTA IS MORE IMPORTANT THAN HAITI SECURING THE COLD WAR VICTORY IN RUSSIA AND EASTERN EUROPE MEANS DISMANTLING PROTECTIONIST MOATS AROUND WESTERN EUROPE AND THE US THIS IS THE WORK OF PRESIDENTS IN SHORT DESPITE THE ATMOSPHERE OF DISARRAY THE WORLD REMAINS A LARGE AND SERIOUS PLACE WHERE IT SHOULD BE POSSIBLE FOR A SERIOUS FOREIGN POLICY TO ACCOMPLISH IMPORTANT THINGS BUT FIRST WE HAVE TO BE ABLE TO SEE THE WORLD AS IT IS WHICH IS TO SAY UNAVOIDABLY INTERDEPENDENT THAT THE CLINTON ADMINISTRATION SEEMS TO BE WANDERING IN A FOG IS NO REASON FOR THE REST OF US TO START DRIVING WITH THE LIGHTS OFF 9310190052 931019 BUSINESS BRIEF TRICONEX CORP COMPANY TO POST INCREASE IN QUARTERLY SALES EARNINGS TRICONEX CORP EXPECTS TO REPORT THAT THIRDQUARTER NET INCOME ROSE TO A LITTLE OVER 14 MILLION OR ABOUT 28 CENTS A SHARE FROM 11 MILLION OR 22 CENTS A SHARE A YEAR AGO WILLIAM K BARKOVITZ CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID HE SAID IN AN INTERVIEW THAT SALES JUMPED TO ABOUT 114 MILLION FROM 73 MILLION THE MAKER OF INDUSTRIAL SAFETY AND CONTROL SYSTEMS IS EXPECTED TO OFFICIALLY REPORT ITS THIRDQUARTER FIGURES TODAY MUCH OF THE IRVINE CALIF COMPANY'S GROWTH STEMS FROM ITS 8 MILLION ACQUISITION OF TRISEN SYSTEMS INC IN JUNE A PURCHASE MR BARKOVITZ SAID ALREADY IS PAYING OFF FOR TRICONEX 9310190051 931019 BUSINESS BRIEF FEDERAL HOME LOAN MORTGAGE CORP THIRDQUARTER NET ROSE 24 ON 18 INCREASE IN REVENUE FEDERAL HOME LOAN MORTGAGE CORP OR FREDDIE MAC SAID THIRDQUARTER NET INCOME JUMPED 24 TO 200 MILLION OR 103 A SHARE THAT COMPARES WITH NET INCOME OF 161 MILLION OR 83 CENTS A SHARE A YEAR EARLIER FREDDIE MAC A GOVERNMENTSPONSORED CONCERN SAID REVENUE ROSE 18 TO 510 MILLION FROM 434 MILLION A YEAR EARLIER IN NEW YORK STOCK EXCHANGE TRADING FREDDIE MAC SHARES CLOSED AT 5175 UP 125 CENTS THE COMPANY'S PROFITS COME PRIMARILY FROM FEES EARNED FROM BUYING MORTGAGES AND PACKAGING THEM AS SECURITIES AND INTEREST COLLECTED ON THE LOANS IT KEEPS AS INVESTMENT FREDDIE MAC'S RETURN ON ITS RETAINED MORTGAGE PORTFOLIO INCREASED 42 TO 300 MILLION COMPARED WITH 211 MILLION A YEAR EARLIER 9310190050 931019 INTERNATIONAL BRIEF KREDIETBANK NV CONVERTIBLE BOND ISSUE SET TO FINANCE BANK EXPANSION KREDIETBANK NV BELGIUM'S THIRDLARGEST COMMERCIAL BANK PLANS TO ISSUE 825 BILLION BELGIAN FRANCS 2322 MILLION OF CONVERTIBLE BONDS TO FINANCE EXPANSION KREDIETBANK SAID THE 10YEAR BOND ISSUE IS A QUASISTOCK OFFER THE BONDS WILL BE AUTOMATICALLY CONVERTED INTO STOCK AT MATURITY WHILE THE LEVEL OF THE ANNUAL INTEREST PAYOUT WILL VARY ACCORDING TO THE DIVIDEND PAID ON KREDIETBANK SHARES MOST OF THE BONDS ARE RESERVED FOR EXISTING KREDIETBANK SHAREHOLDERS THE MOVE TO RAISE CAPITAL IS A PRECAUTIONARY GESTURE KREDIETBANK SAID AIMED AT ENSURING THAT THE BANK'S COMFORTABLE SOLVENCY RATIO OF 111 ISN'T ERODED BY STEADILY GROWING LENDING ACTIVITIES KREDIETBANK CHAIRMAN MARCEL COCKAERTS SAID THE BANK PLANS TO CONTINUE STRENGTHENING ITS PRESENCE BOTH IN BELGIUM AND IN NEIGHBORING AND FOREIGN COUNTRIES THE BANK IN RECENT MONTHS HAS OPENED OUTLETS IN BERLIN PARIS SINGAPORE AND SHANGHAI 9310190049 931019 CLINTON DECRIES PROPOSALS TO CURB HIS AUTHORITY WASHINGTON THE CLINTON ADMINISTRATION STRONGLY OPPOSED CONGRESSIONAL EFFORTS TO LIMIT THE PRESIDENT'S AUTHORITY TO CONDUCT FOREIGN POLICY IN A LETTER TO SENATE MAJORITY LEADER GEORGE MITCHELL PRESIDENT CLINTON SAID I AM FUNDAMENTALLY OPPOSED TO AMENDMENTS WHICH IMPROPERLY LIMIT MY ABILITY TO PERFORM MY CONSTITUTIONAL DUTIES AS COMMANDER IN CHIEF MR CLINTON WAS REFERRING TO PLANS BY SENATE MINORITY LEADER BOB DOLE OF KANSAS AND GOP SEN DON NICKLES OF OKLAHOMA TO OFFER AMENDMENTS THAT WOULD REQUIRE CONGRESSIONAL AUTHORIZATION BEFORE US FORCES COULD BE SENT TO HAITI OR BOSNIA AND THAT WOULD BAR US FORCES FROM OPERATING UNDER FOREIGN COMMANDS LAST NIGHT CLINTON ADMINISTRATION AND CONGRESSIONAL AIDES WORKED TO MODIFY THE LANGUAGE OF THE AMENDMENTS IN A WAY THAT WOULD BE ACCEPTABLE TO THE WHITE HOUSE SEN DOLE STRIKING A CONCILIATORY TONE YESTERDAY SAID WE'RE PREPARED TO WORK WITH THE ADMINISTRATION IF WE CAN IF WE CAN'T WE'LL MAKE WHATEVER CHANGES WE CAN AGREE ON AND THEN ASK THE SENATE TO VOTE ON IT 9310190048 931019 INTERNATIONAL BRAZIL'S FRANCO OFFERS TO QUIT CALL ELECTIONS MOVE IS EXPECTED TO JOLT CONGRESS AMID SCANDAL STOCKS TAKE A TUMBLE BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL RIO DE JANEIRO BRAZILIAN PRESIDENT ITAMAR FRANCO SENT STOCK MARKETS PLUNGING BY SAYING HE WAS PREPARED TO RESIGN IF CONGRESS DECIDED THAT EARLY GENERAL ELECTIONS WOULD HELP PULL THE COUNTRY OUT OF POLITICAL AND ECONOMIC CRISIS WITH A NEW CORRUPTION SCANDAL UNFOLDING AND MEMBERS OF PARLIAMENT OPENLY TALKING OF A THREAT TO DEMOCRACY MR FRANCO SAID HE WOULDN'T STAND IN THE WAY IF CONGRESS DECIDED THAT THE BEST SOLUTION WOULD BE TO MOVE FORWARD THE PRESIDENTIAL CONGRESSIONAL AND GUBERNATORIAL ELECTIONS THAT ARE SCHEDULED ONE YEAR FROM NOW BUT MR FRANCO STRESSED THAT HE WASN'T OFFERING HIS RESIGNATION AND THE INITIATIVE WOULD HAVE TO BE TAKEN BY CONGRESS IF CONGRESS DECIDED THAT ANTICIPATING THE ELECTIONS IS A GOOD WAY OUT HE HAS NO PROBLEM WITH THAT THE GOVERNMENT'S SENATE WHIP PEDRO SIMON TOLD REPORTERS INVESTORS' FEAR OF A POLITICAL VACUUM THAT COULD FAVOR THE LEFTWING WORKERS' PARTY SENT THE STOCK MARKET DIVING 95 IN SAO PAULO AND 78 IN RIO MR FRANCO HAS A KNACK FOR PUTTING HIS FOOT IN HIS MOUTH BUT MOST POLITICAL ANALYSTS AND CONGRESSMEN SAY THAT FAR FROM A NEW GAFFE MR FRANCO'S MOVE IS A TACTICAL STEP DESIGNED TO PUSH CONGRESS INTO A SPEEDY RESOLUTION OF A NEW CORRUPTION SCANDAL ALLEGEDLY INVOLVING SEVERAL OF ITS MEMBERS AS WELL AS TWO MEMBERS OF MR FRANCO'S CABINET THEY BELIEVE EARLY ELECTIONS ARE UNLIKELY BECAUSE CONGRESSMEN ARE UNLIKELY TO FAVOR SHORTENING THEIR OWN TERMS NEITHER THE PRESIDENT NOT CONGRESS NOR THE ARMY WANTS EARLY ELECTIONS SAID POLITICAL ANALYST WALDER DE GOES THIS IS A PLOY TO PRESSURE CONGRESS INTO A RAPID SOLUTION OF ITS CRISIS TO AVOID BLOCKING THE WHOLE POLITICAL AGENDA MR FRANCO'S STATEMENT COMES IN THE WAKE OF A NEW SCANDAL THAT FURTHER ERODES THE CREDIBILITY OF BRAZIL'S INSTITUTIONS IT INVOLVES A FORMER FEDERAL BUDGET DIRECTOR JOSE CARLOS ALVES DOS SANTOS WHO WAS ARRESTED LAST WEEK AS THE LEADING SUSPECT IN THE DEATH OF HIS WIFE ASKED TO EXPLAIN THE ORIGIN OF MORE THAN 1 MILLION FOUND IN HIS POSSESSION HE SAID THE MONEY WAS THE RESULT OF A CORRUPTION RING IN CONGRESS UNDER WHICH PAYMENTS WERE MADE IN RETURN FOR APPROVAL OF BUDGETARY AMENDMENTS THAT WOULD FAVOR CONSTRUCTION COMPANIES IN GOVERNMENT CONTRACTS AMONG THOSE HE IMPLICATED ARE TWO FORMER CONGRESSMEN WHO ARE NOW TOP GOVERNMENT OFFICIALS THE TWO MEN CHIEF OF STAFF HENRIQUE HARGREAVES AND REGIONAL INTEGRATION MINISTER ALEXANDRE COSTA OFFERED TO RESIGN AND CONGRESS DECIDED TO SET UP A COMMISSION TO INVESTIGATE THE CHARGES THE SCANDAL PROMPTED ONE MEMBER OF PARLIAMENT MIRO TEIXEIRA TO CALL FOR EARLY ELECTIONS SAYING THAT FAILURE TO ACT DECISIVELY WILL LEAD TO PUBLIC PRESSURE TO CLOSE DOWN CONGRESS BUT MR TEIXEIRA SAYS MR FRANCO WOULD HAVE TO TAKE THE INITIATIVE HIMSELF AND THINKS YESTERDAY'S MOVE WON'T LEAD ANYWHERE OTHERS HOWEVER THINK THE PRESIDENT'S STATEMENT COULD TRIGGER A DEBATE THAT MIGHT CONCLUDE THAT EARLY BALLOTS ARE THE ONLY WAY TO AVOID PARALYSIS THE GOVERNMENT IS ALREADY WRESTLING WITH A HOST OF POLITICAL AND ECONOMIC PROBLEMS THE BIGGEST BEING AN INFLATION RATE OF ABOUT 2000 A YEAR BRAZILIANS SHOULD CHOOSE IF THEY WANT PERMANENT CRISIS OR EARLY ELECTIONS SAYS BANKER IGOR CORNELSEN WHO BELIEVES MR FRANCO IS TOO WEAK TO RESOLVE BRAZIL'S RUNAWAY INFLATION 9310190047 931019 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY OCTOBER 6 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9310190046 931019 BUSINESS BRIEF LA QUINTA INNS INC HOTEL CONCERN TO BUY UNITS OF MOTOR INNS PARTNERSHIP LA QUINTA INNS INC SAID ITS BOARD AUTHORIZED NEGOTIATIONS TO ACQUIRE ALL OF THE 3522300 PARTNERSHIP UNITS OF LA QUINTA MOTOR INNS LP THAT IT DOESN'T OWN AT UP TO 12 A UNIT IN CASH THE SAN ANTONIOBASED HOTELANDRESTAURANT OPERATOR CURRENTLY HOLDS 452700 PARTNERSHIP UNITS OR 114 OF LA QUINTA MOTOR INNS WHICH OWNS 31 HOTELS MANAGED BY LA QUINTA INNS UNDER A LONGTERM CONTRACT LA QUINTA INNS SAID TERMS OF ANY SUCH TRANSACTION HAVEN'T BEEN DETERMINED BUT WOULD BE FINANCED BY AVAILABLE CREDIT LINES AND WOULDN'T BE SUBJECT TO A FINANCING CONTINGENCY GARY L MEAD PRESIDENT AND CHIEF EXECUTIVE OF LA QUINTA INNS INC SAID THAT SINCE THE PARTNERSHIP NEEDS TO REFINANCE 65 MILLION OF EXISTING INDEBTEDNESS AND TO SATISFY SIGNIFICANT CAPITAL EXPENDITURE REQUIREMENTS FOR ITS INNS WE BELIEVE THAT A TRANSACTION MAY WELL BE IN THE BEST INTERESTS OF THE PARTNERSHIP'S UNIT HOLDERS AND THE LA QUINTA CHAIN 9310190045 931019 WHAT'S NEWS WORLDWIDE A JURY RETURNED A STRING OF NOTGUILTY VERDICTS IN THE DENNY BEATING CASE THE EMBATTLED LOS ANGELES JURY ACQUITTED THE TWO DEFENDANTS OF MOST FELONY CHARGES IN THE BEATING OF TRUCK DRIVER REGINALD DENNY AT THE START OF LAST YEAR'S RIOTS THE DEFENDANTS DAMIAN WILLIAMS AND HENRY WATSON WERE CONVICTED ON SIX LESSER CHARGES STATE COURT JUDGE OUDERKIRK ORDERED THE PANEL TO TRY TO REACH VERDICTS ON REMAINING COUNTS DESPITE INDICATIONS FROM HALF THE JURORS THAT THE PANEL WAS HOPELESSLY DEADLOCKED THE NOTGUILTY VERDICTS REFLECTED THE SUCCESS OF DEFENSE LAWYERS IN ESTABLISHING THAT THEIR CLIENTS WERE CAUGHT UP IN A WAVE OF VIOLENCE DURING THE RIOTS HAITI'S MILITARY DEFIED A DEADLINE TO STEP DOWN AND BELITTLED A UN EMBARGO AS RIGHTWING SUPPORTERS OF THE MILITARY LEADERSHIP WARNED THAT ANY AMERICAN INVADERS WOULD GO HOME IN BAGS AN ARMY BROADCAST URGED HAITIANS NOT TO WORRY ABOUT THE UN EMBARGO OR THE US SHIPS OFFSHORE THE EMBARGO PICKED UP SUPPORT FROM THE ORGANIZATION OF AMERICAN STATES AND WAS SCHEDULED TO TAKE EFFECT AT MIDNIGHT LAST NIGHT PRESIDENT CLINTON MEANWHILE SAID THAT HE WOULD OPPOSE ANY CONGRESSIONAL EFFORTS TO CURB HIS FOREIGN POLICY POWERS CLINTON TIGHTENED PRESSURE ON HAITIAN MILITARY OFFICIALS AND THEIR SUPPORTERS BY FREEZING ANY ASSETS THEY MIGHT HAVE IN THE US AND REVOKING THEIR VISAS THE SUPREME COURT AGREED TO DECIDE WHETHER FEDERAL COURTS MAY SECONDGUESS DECISIONS TO CLOSE MILITARY BASES THE JUSTICES WILL REVIEW A LOWERCOURT RULING THAT REINSTATED A SUIT SEEKING TO BLOCK THE PROPOSED CLOSING OF THE NAVY SHIPYARD IN PHILADELPHIA THE CLINTON ADMINISTRATION HAS APPEALED THAT RULING RUSSIA WILL DUMP MORE LOWLEVEL RADIOACTIVE WASTE AT SEA MOSCOW OFFICIALS SAID DESPITE JAPANESE PROTESTS OVER THE DUMPING OF MORE THAN 237000 GALLONS OF LIQUID WASTE INTO THE SEA OF JAPAN ON SATURDAY JAPAN HAS DEMANDED AN IMMEDIATE HALT TO THE DUMPING DISPUTING ASSERTIONS BY RUSSIA THAT IT GAVE ADVANCE WARNING OF THE OPERATION US SOLDIERS IN SOMALIA FIRED AT AN ARMED GROUP THAT APPROACHED THEIR BASE IN MOGADISHU AND UN TROOPS FIRED WARNING SHOTS IN THREE OTHER SKIRMISHES THERE WERE NO SIGNS THE INCIDENTS WERE RELATED ISOLATED ASSAULTS OVER THE PAST WEEK HAVE BEEN LINKED TO CLAN RIVALRIES RATHER THAN TO ATTACKS ON THE MULTINATIONAL PEACEKEEPING FORCE CLINTON DEFENDED HIS PROPOSAL TO PROVIDE BREASTCANCER DETECTION AND CARE UNDER HIS HEALTH PLAN SAYING IT WAS TIME TO STOP TREATING WOMEN AS SECONDCLASS CITIZENS ON HEALTH ISSUES DURING A CEREMONY AT THE WHITE HOUSE HE WAS PRESENTED WITH 26 MILLION SIGNATURES ON A PETITION CALLING FOR A NATIONAL STRATEGY TO DEAL WITH THE DISEASE SECRETARY OF STATE CHRISTOPHER WARNED SERBIA'S PRESIDENT MILOSEVIC AGAIN OF POSSIBLE NATO AIR STRIKES TO HALT ANY SERB EFFORT TO CUT OFF THE BOSNIAN CAPITAL SARAJEVO WHICH WAS HIT BY RENEWED SHELLING YESTERDAY MEANWHILE RENEGADE GOVERNMENT SOLDIERS RETURNED ONE OF TWO STOLEN UN VEHICLES AFTER A UN COMMANDER SAID THE THEFTS JEOPARDIZED PEACEKEEPING EFFORTS A UN COMMISSION ISSUED AN INTERIM REPORT ON ALLEGED ATROCITIES IN THE FORMER YUGOSLAVIA SAYING PANEL MEMBERS SO FAR HAVEN'T CONCLUDED WHETHER RAPE WAS USED AS A DELIBERATE INSTRUMENT OF WAR THERE HAVE BEEN FREQUENT ALLEGATIONS THAT BOSNIAN SERB FORCES IN PARTICULAR USED RAPE TO TERRORIZE MUSLIMS AND FORCE THEM TO FLEE THEIR TOWNS BRAZIL'S PRESIDENT SENT THE NATION'S STOCK MARKETS PLUNGING BY SAYING HE WAS PREPARED TO STEP DOWN IF CONGRESS DECIDED THAT EARLY GENERAL ELECTIONS WOULD HELP PULL THE COUNTRY OUT OF A POLITICAL CRISIS BUT FRANCO STRESSED THAT HE WASN'T OFFERING TO RESIGN AND THE INITIATIVE WOULD HAVE TO BE TAKEN BY CONGRESS GEORGIAN LEADER SHEVARDNADZE SAID HIS ARMY WAS IN A STATE OF COLLAPSE AND HIS GOVERNMENT NEEDED RUSSIAN HELP TO REGAIN LAND LOST IN ETHNIC FIGHTING HE VOWED TO TAKE BACK TOWNS LOST TO REBELS IN WESTERN GEORGIA BUT CONCEDED THAT HIS TROOPS COULDN'T REGAIN THE PROVINCE OF ABKHAZIA WITHOUT OUTSIDE MILITARY HELP SHUTTLE COLUMBIA BLASTED OFF FROM FLORIDA WITH A CREW OF SEVEN ASTRONAUTS WHO WILL CONDUCT A 14DAY RESEARCH MISSION ABOARD THE CRAFT ARE 48 RATS SOME OF WHICH WILL BE USED FOR THE FIRST ANIMAL DISSECTIONS IN SPACE WITH POSTFLIGHT ANALYSIS AIMED AT DETERMINING THE EFFECTS OF WEIGHTLESSNESS 9310190044 931019 POLITICS & POLICY REP STARK MAVERICK DEMOCRAT PLAYS KEY ROLE IN OUTCOME OF WHITE HOUSE HEALTHCARE DRAMA BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON REP FORTNEY PETE STARK IS THE DEMOCRATS' BAD BOY OF HEALTHCARE REFORM HE'S LIKE STEPHEN KING SAYS HIS FRIEND REP GEORGE MILLER HE'S ONE STEP BEYOND SOMETIMES ONE STEP INDEED NOT SINCE THE MAD HATTER AND MARCH HARE SHARED TEA HAS THERE BEEN A LINEUP TO MATCH THE WAYS AND MEANS HEALTH PANEL LED BY MR STARK ITS CHAIRMAN AND THE EVEN MOODIER REP BILL THOMAS A FELLOW CALIFORNIAN AND THE SUBCOMMITTEE'S TOP REPUBLICAN MR STARK RARELY MISSES A CHANCE TO PUT DOWN THE CLINTON ADMINISTRATION'S HEALTH TEAM AND EVEN ON HIS BEST BEHAVIOR HE CAN'T RESIST TAKING A BITE OUT OF THE WHITE HOUSE STAFF OR GOODY TWOSHOES TEAMPLAYER SEN JAY ROCKEFELLER W VA HIS DEMOCRATIC COUNTERPART ON THE SENATE FINANCE COMMITTEE SURE I'M A TEAM PLAYER HE SAYS OF HIMSELF BEFORE BREAKING INTO LAUGHTER BUT I WANT TO BE THE COACH TOO COACH OR PLAYER MR STARK WILL SURELY BE A MAJOR FACTOR IN DETERMINING WHETHER THE ADMINISTRATION CAN WIN OVER FELLOW LIBERALS WHO ESPOUSE A FEDERALLY RUN SINGLE PAYER HEALTHCARE PLAN RATHER THAN THE PRESIDENT'S HYBRID PUBLICPRIVATE PROPOSAL IN THE FRACTIOUS HOUSE OTHER COMPETING DEMOCRATIC HEALTH HEAVYWEIGHTS HAVE ALREADY STAKED OUT STRATEGIES CALIFORNIA REP HENRY WAXMAN HAS PUT ASIDE HIS OWN MORE LIBERAL LEANINGS TO CHAMPION THE ADMINISTRATION'S PLAN AS PROPOSED WHILE SEEKING TO HOLD THE WHITE HOUSE TO IT AT THE SAME TIME TENNESSEE REP JIM COOPER IS PULLING HIS PARTY TO THE RIGHT AS HE RUNS FOR THE SENATE IN THAT STATE THUS THE SINGLEPAYER BLOC COULD HOLD THE BALANCE OF POWER AND MR STARK MUST DECIDE WHETHER HE WILL HELP BRING THESE VOTES TO THE CENTER OR RISK UNDERMINING THE CHANCES FOR ACHIEVING THE UNIVERSAL COVERAGE HE HAS LONG DREAMED OF IT'S A STARK CHOICE SAYS MR WAXMAN WHO LAUGHS WHEN HE REALIZES WHAT HE HAS SAID MR STARK HIMSELF INSISTS THAT I'M NOT WILLING TO RUN OFF THE RESERVATION BUT NEITHER WILL HE BE IGNORED PARTICULARLY SINCE THE RETIREMENT EARLY THIS YEAR OF REP WILLIS GRADISON OF OHIO WHO HAD BEEN THE SUBCOMMITTEE'S TOP REPUBLICAN AND WAS A TEMPERING INFLUENCE AS WELL AS VALUED PARTNER MR STARK'S PANEL HAS BECOME A PLACE WHERE ADMINISTRATION OFFICIALS VENTURE AT THEIR OWN PERIL ADDING TO THE TENSE ATMOSPHERE IS MR GRADISON'S SUCCESSOR REP THOMAS A MUCH MORE COMBUSTIBLE FIGURE THAN HIS PREDECESSOR ONCE VIEWED AS A BRIGHT YOUNG COMER IN THE HOUSE THE FORMER POLITICAL SCIENCE PROFESSOR HAS GROWN INCREASINGLY PARTISAN AND HIS ACADEMIC WIT HAS GIVEN WAY TO EMOTIONAL OUTBURSTS EVEN HIS FELLOW REPUBLICANS FOR EXAMPLE CRINGED THIS SUMMER WHEN HE FIRST RAISED AND THEN HAD TO BACK DOWN FROM A CHARGE ON THE HOUSE FLOOR THAT SPEAKER THOMAS FOLEY HAD MANIPULATED THE JUSTICE DEPARTMENT ON AN ISSUE RELATED TO THE HOUSE POST OFFICE SCANDAL BOTH HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA AND JUDITH FEDER A SENIOR ADMINISTRATION HEALTH ADVISER HAVE HAD UNPLEASANT DUSTUPS AT HEARINGS WITH THE STARKTHOMAS COMBINATION SINCE THE PRESIDENT UNVEILED HIS PROPOSAL POOR SHALALA DIDN'T HAVE ANSWERS QUITE FRANKLY SAYS MR STARK THOUGH TO SHOW THERE WERE NO HARD FEELINGS HE SEVERAL DAYS LATER RETIRED TO A PREARRANGED DINNER WITH THE SECRETARY I BOUGHT THE WINE SHE BOUGHT THE DINNER HE SAYS IF HE SEEMS FOREVER PETULANT MR STARK IS ALSO A MAN WITH SMARTS AND SOME GUTS SINCE TAKING OVER THE PANEL IN 1985 HE HAS FOUGHT WITH THE AMERICAN MEDICAL ASSOCIATION THE INSURANCE INDUSTRY AND THE SENIOR CITIZENS' LOBBY ALL MAJOR PLAYERS IN THE COMING HEALTHCARE DEBATE AND AS A MEMBER OF WAYS AND MEANS HE HAS BEEN A LOYAL VOTE AS WELL AS LIBERAL STALKING HORSE FOR CHAIRMAN DAN ROSTENKOWSKI WHOSE LEGAL TROUBLES IN THE HOUSE POST OFFICE SCANDAL CAST A SHADOW OVER THE PROSPECTS FOR HEALTH LEGISLATION NEXT YEAR IF THE CHICAGO DEMOCRAT IS FORCED TO STEP DOWN MR STARK STANDS TO LOSE A PROTECTOR AND RESTRAINING INFLUENCE BUT HE ALSO GAINS A CHANCE TO SHED HIS LONER IMAGE AND MOVE INTO THE LEADERSHIP VOID BEYOND PERSONALITIES THE DEBATE ILLUSTRATES A LARGER QUANDARY FOR LIBERALS AND CONSERVATIVES ALIKE MORE THAN ANY LEGISLATION IN RECENT MEMORY HEALTH CARE GOES TO THE HEART OF THE VERY AMERICAN QUESTION OF HOW TO BALANCE THE VALUES OF FREEDOM VS EQUALITY IN THIS CASE GREATER EQUALITY MEASURED IN UNIVERSAL COVERAGE AND EQUAL APPLICATION OF COST CONTROLS MUST BE WEIGHED AGAINST GIVING UP CERTAIN FREEDOMS WHETHER IN MARKETS OR CHOOSING A DOCTOR JUST AS THE 19TH CENTURY WAS INFLUENCED BY THE LOSS OF THE FRONTIER THE DEBATE NOW IS DRIVEN BY A GREATER REALIZATION OF THE NATION'S LIMITED RESOURCES REPUBLICANS ARE MOVING TOWARD A LEVEL OF INSURANCE REGULATION MANY FOUND UNACCEPTABLE IN THE PAST TO DO OTHERWISE WOULD RISK BEING IDENTIFIED WITH VESTED HEALTH INTERESTS THAT ARE HELD IN NO MORE ESTEEM THAN THE RAILROAD BARONS WHO BACKED THE GOP A CENTURY AGO AT THE SAME TIME LIBERALS FACE A PUBLIC DISTRUSTFUL OF TAXES AND GOVERNMENT SOLUTIONS AND ECONOMICS AND HISTORY RUN AGAINST THE EUROPEAN INDUSTRIAL WELFARESTATE MODELS FROM WHICH THE PRESIDENT BORROWED IN SHAPING PORTIONS HIS OWN PLAN MR STARK'S OWN BACKGROUND PUTS HIM SQUARELY IN THE TRADITION OF THOSE WELFARESTATE MODELS REMEMBER BISMARCK THE SOCIAL CONTRACT HE SAYS RECALLING THE PRUSSIAN STRONGMAN WHO PROMISED WORKERS INSURANCE AGAINST SICKNESS AND OLD AGE MORE THAN A CENTURY AGO THE COMMENT ALSO ECHOES HIS OWN GERMANAMERICAN HERITAGE IN THE SAME MILWAUKEE NEIGHBORHOODS THAT GAVE RISE TO SUCH LIBERAL FIREBRANDS AS THE LATE REP PHIL BURTON OF CALIFORNIA AND ABNER MIKVA A FORMER ILLINOIS CONGRESSMAN WHO IS NOW A FEDERAL APPELLATE JUDGE MR STARK HIMSELF WAS A CHILD OF LAFOLLETTE PROGRESSIVES BUT HIS REPUBLICAN LOYALTIES WERE LONG PAST BY THE TIME HE FIRST MADE THE PAGES OF THIS NEWSPAPER AS AN AGE OF AQUARIUS MBA WHO DREW CUSTOMERS TO HIS CALIFORNIA BANK BY MOUNTING A NEON PEACE SYMBOL OVER IT DURING THE VIETNAM WAR HIS ELECTION TO THE HOUSE IN 1972 STILL MARKS HIM AS PART OF THE REBELLIOUS CONGRESSIONAL CLASSES OF THAT ERA BUT THIS FORMER COMMON CAUSE BOARD MEMBER NOW PAYS FOR HIS AMERICANS FOR DEMOCRATIC ACTION TICKETS FROM A HALFMILLIONDOLLAR CAMPAIGN CHEST SWOLLEN WITH POLITICAL ACTION COMMITTEE FUNDS HEALTH INTERESTS LEAD THE WAY INCLUDING EVEN THE AMA WHICH ONCE POURED HUNDREDS OF THOUSANDS OF DOLLARS INTO HIS OAKLANDAREA DISTRICT IN AN UNSUCCESSFUL EFFORT TO OUST HIM I'D SAID DOCTORS WERE BEING TROGLODYTES HE SAYS THAT MIGHT HAVE DONE IT THE GREAT ENDURING CONSTANT FOR MR STARK IS MEDICARE WHICH DOMINATES HIS THINKING ON THE PRESIDENT'S REFORMS AND REPRESENTS BOTH A MODEL TO BE FOLLOWED AND SOMETHING HE HAS A PERSONAL CHARTER TO PROTECT HE IS PLAINLY HOSTILE TO THE WHITE HOUSE'S NOTION OF CEDING POWER TO GOVERNORS INCLUDING HIS OWN BACKHOME REPUBLICAN GOVERNOR CALIFORNIA'S PETE WILSON MR STARK'S OWN VISION IS A MEDICAREFORALL MODEL THAT WOULD PRESERVE CHOICES FOR PATIENTS BY EXPANDING FEDERAL COVERAGE UNDER A NATIONAL HEALTH BUDGET TO CONTROL COSTS HE IS OPENLY CRITICAL OF THE ADMINISTRATION'S COSTCONTROL SCHEME THERE'S NO WAY THESE PREMIUM CAPS WORK HE SAYS SUCH WORDS ARE COMFORTING TO SOME OF HIS OLD FOES SUCH AS THE INSURANCE INDUSTRY WHICH HAS ENLISTED HIS COMPATRIOT REP GRADISON TO RUN ITS TRADE GROUP BUT NO ONE CAN TAKE HIM FOR GRANTED HE IS A REALIST HE CAN COUNT VOTES SAYS MR GRADISON HE WILL BE A MAJOR PLAYER IN RESOLVING THESE ISSUES AND ANYONE WHO TRIES TO STEER AROUND HIM IS MAKING A BIG MISTAKE 9310190043 931019 SHELL OIL CO MASTERCARD TO OFFER GASOLINE REBATES SHELL OIL CO SAID IT WOULD OFFER A MASTERCARD THAT GIVES REBATES FOR GASOLINE PURCHASES BECOMING THE FIRST OIL COMPANY TO ENTER THE COMPETITIVE FRAY OF COBRANDED CREDIT CARDS THE MOVE WHICH WAS EXPECTED IS ANOTHER STEP IN A TREND OF COMPANIES ISSUING THEIR OWN CARDS IN A BID TO BOOST SALES IT'S ALSO A SIGN THAT RETAILERS AND OTHER COMPANIES THAT ISSUE THEIR OWN PROPRIETARY CARDS WILL BE HARDPRESSED TO COMPETE WITH THE REBATES AND SPECIAL BENEFITS THAT MULTIUSE CARDS SUCH AS VISA OR MASTERCARD CAN PROVIDE SHELL A UNIT OF ROYAL DUTCH/SHELL GROUP IS SETTING UP THE CARD JOINTLY WITH CHEMICAL BANKING CORP'S CHEMICAL BANK OF NEW YORK THE BANK WILL ADMINISTER THE CARD AND MAIL OUT NINE MILLION APPLICATIONS TO PROSPECTIVE MEMBERS IT ALSO WILL SEEK OTHER MEMBERS THROUGH AN EXTENSIVE PRINT AND TELEVISION ADVERTISING CAMPAIGN FOR CHEMICAL THE MOVE IS A SIGNIFICANT STEP THAT COULD DOUBLE ITS 45 MILLION CREDIT ACCOUNTS AND MAKES THIS THE BIGGEST CREDITCARD LAUNCH SINCE THE GENERAL MOTORS CORP MASTERCARD A YEAR AGO 9310190042 931019 BUSINESS BRIEF KANEBO EARNINGS AND SALES FORECASTS ARE LOWERED FOR FISCAL YEAR JAPANESE TEXTILE MAKER KANEBO SHARPLY LOWERED ITS FORECAST FOR CONSOLIDATED SALES AND EARNINGS FOR THE YEAR ENDING MARCH 31 KANEBO NOW EXPECTS A PRETAX LOSS OF 65 BILLION YEN 607 MILLION ON SALES OF 600 BILLION YEN ITS EARLIER FORECAST WAS FOR A PRETAX PROFIT OF ONE BILLION YEN ON SALES OF 650 BILLION YEN IN THE YEAREARLIER PERIOD KANEBO HAD A PRETAX LOSS OF 277 BILLION YEN ON SALES OF 65971 BILLION YEN IN REVISING THE FORECAST KANEBO NOTED THE COLLAPSE IN DOMESTIC TEXTILE PRICES WHICH IT SAID WAS DUE IN PART TO CHEAP IMPORTS FROM SOUTHEAST ASIAN NATIONS THE COMPANY ALSO CITED POOR PERFORMANCE OF ITS FOOD SUBSIDIARIES AMID STAGNATION IN PERSONAL CONSUMPTION 9310190041 931019 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN GERMAN COAL MINERS PROTESTED AFTER ECONOMICS MINISTER GUENTER REXRODT SAID 40000 JOBS IN THE HEAVILY SUBSIDIZED MINES SHOULD BE ELIMINATED BY THE YEAR 2005 ABOUT 15000 MINERS GATHERED IN HAMM AND DEMONSTRATIONS WERE HELD IN BOTTROP AND POTSDAM MR REXRODT PROPOSED REDUCING TO 20 MILLION METRIC TONS FROM 35 MILLION TONS BY 2005 THE GUARANTEE FOR COAL TO GENERATE ELECTRICITY THE GOVERNMENT TRYING TO REDUCE ITS DEFICIT THAT COULD DOUBLE TO 43 BILLION THIS YEAR PAYS THE COAL INDUSTRY SUBSIDIES OF 12375 A TON OR 619 BILLION A YEAR MEANWHILE THE IG METALL UNION CONCEDED THAT A 1994 PAY RAISE FOR ITS 34 MILLION MEMBERS IN WESTERN GERMANY PROBABLY WON'T MATCH THE REGION'S PREDICTED MINIMUM 35 INFLATION RATE BUT IT RESISTED INDUSTRY AND GOVERNMENT CALLS FOR A WAGE FREEZE AND VACATION CUTBACKS IG METALL GOT A 3 WAGE BOOST THIS YEAR WHEN REGIONAL INFLATION TOPPED 4 SEPARATELY EASTERN GERMANY BANKRUPTCIES IN THE FIRST HALF MORE THAN DOUBLED TO 1180 FROM 475 A YEAR EARLIER NINE EUROPEAN COMMUNITY MEMBERS DELAYED FOR TWO MONTHS UNTIL FEB 1 THE STARTING DATE OF AN AGREEMENT TO END BORDER CONTROLS AND VISAS FRANCE WHICH SOUGHT THE POSTPONEMENT CITED TECHNICAL PROBLEMS WITH A COMPUTERIZED POLICE FILE TO COMBAT ILLEGAL IMMIGRANTS AND DRUGS AND THE NEED TO REVISE THE FRENCH CONSTITUTION TO CONFORM WITH THE NEW RULES THE ACCORD PROVIDES FOR FREE CIRCULATION OF CITIZENS COMMON VISA AND ASYLUM POLICIES AND POLICE COOPERATION IT DOESN'T APPLY IN BRITAIN IRELAND AND DENMARK RETAILSALES GROWTH IN BRITAIN LAST MONTH DIDN'T MEET EXPECTATIONS AND SLOWED FROM THE PREVIOUS THREE MONTHS THE CONFEDERATION OF BRITISH INDUSTRY SAID WARNING THAT ECONOMIC RECOVERY REMAINS FRAGILE THE GROUP'S MONTHLY SURVEY FOUND THAT SALES WERE UNEVEN WITH STRONG YEARTOYEAR GROWTH IN AREAS SUCH AS FOOTWEAR GROCERIES PHARMACEUTICALS AND LIQUOR AND DECLINES IN SPECIALTY FOODS DURABLE HOUSEHOLD GOODS CLOTHING AND FURNITURE ONLY ONE RETAILER IN FOUR INDICATED THAT BUSINESS CONDITIONS WERE GOOD LATVIA DECLARED ITS LAT CURRENCY THE ONLY LEGAL TENDER AND DISCONTINUED THE RUBLIS ITS TRANSITIONAL CURRENCY SINCE MAY 1992 THE LAT WAS INTRODUCED LAST MARCH DUAL CURRENCIES HAD BEEN USED WHILE THE FORMER SOVIET REPUBLIC ESTABLISHED THE LAT INDEPENDENT OF THE RUSSIAN RUBLE WHICH WAS WITHDRAWN FROM CIRCULATION IN JULY AMID SOARING INFLATION THE BALTIC NATION SINCE THEN HAS REDUCED ITS INFLATION RATE TO ABOUT 25 A MONTH THE LAT IS CURRENTLY VALUED AT 061 TO THE US DOLLAR CHINA WILL SEND INSPECTORS INTO 20 GOVERNMENT DEPARTMENTS FOR A WEEK STARTING TODAY TO INVESTIGATE CORRUPTION THE BEIJINGCONTROLLED WEN WEI PO NEWSPAPER IN HONG KONG SAID TARGETED MINISTRIES INCLUDE HEALTH RAILROADS FINANCE PUBLIC SECURITY AND EDUCATION AND THE CENTRAL BANK SIGNALLING THAT CHINA SUSPECTS CORRUPTION HAS REACHED THE HIGHEST RANKS SINCE AUGUST CHINA'S BIGGEST ANTICORRUPTION CAMPAIGN IN FOUR YEARS HAS UNCOVERED CASES INVOLVING POLICE CHIEFS BANK STAFF MEMBERS AND A DEPUTY MINISTER UKRAINE'S GOVERNMENT ASKED PARLIAMENT TO REVERSE ITS OCTOBER 1991 ORDER BARRING CONSTRUCTION OF NUCLEAR PLANTS AND SCHEDULING FOR CLOSURE BY THE END OF THIS YEAR THE CHERNOBYL PLANT SITE OF THE WORLD'S WORST NUCLEAR DISASTER CITING A FUEL SHORTAGE THAT COULD REQUIRE WINTER ENERGY RESTRICTIONS OFFICIALS WANT TO CONTINUE OPERATING CHERNOBYL AND BUILD THREE NUCLEAR STATIONS THEY SAID SAFETY AT CHERNOBYL NORTH OF KIEV HAS BEEN IMPROVED SINCE THE APRIL 1986 CATASTROPHE THAT CONTAMINATED AREAS OF UKRAINE BELARUS AND RUSSIA AND WAS BLAMED FOR 8000 DEATHS SWEDEN'S POSTAL SYSTEM DESIGNATED A STATE ENTERPRISE WITH OFFICIAL STATUS WOULD BE TRANSFORMED FEB 1 INTO A STATEOWNED CORPORATION NAMED POSTEN AB UNDER A PROPOSAL SUBMITTED TO PARLIAMENT THE MOST NOTICEABLE EFFECT OF THE CHANGE WOULD BE AN INCREASE IN FEES BECAUSE SWEDEN'S VALUEADDED TAX WOULD BE APPLIED TO POSTAL PRODUCTS AND SERVICES INCLUDING POSTAGE STAMPS POSTAGE FOR A DOMESTIC LETTER WOULD INCREASE TO 350 KRONOR 44 US CENTS FROM 290 KRONOR SWEDEN ON JAN 1 ABOLISHED THE POST OFFICE'S MONOPOLY ON MAIL DELIVERY UNDER THE NEW PROPOSAL THE SERVICE'S POSTGIROT SYSTEM ALSO WOULD LOSE ITS MONOPOLY ON STATE PAYMENTS ENABLING CITIZENS COMPANIES AND AGENCIES TO USE INTERMEDIARIES FOR PAYMENTS TO AND FROM THE STATE BUT POSTGIROT COULD EXPAND ITS SERVICES WHICH RESEMBLE THOSE OFFERED BY BANKS AN EXPERIMENTAL CHINESE RESEARCH SATELLITE LAUNCHED OCT 8 MALFUNCTIONED AND DIDN'T RETURN TO EARTH AS PLANNED THE ORBITER CARRIED A MEDALLION WITH 44 DIAMONDS AND A DEPICTION OF COMMUNIST CHINA'S LATE FOUNDER MAO TSE TUNG THAT WAS TO BE AUCTIONED OFF AFTER ITS SPACE SOJOURN ROMANIA'S BIGGEST NATIONAL LOTTERY PRIZE 61000 WAS WON BY A DEAF FACTORY WORKER AUREL BRUMAR 41 YEARS OLD WHO SPENT MORE THAN A FOURTH OF HIS 40 MONTHLY SALARY ON 16 TICKETS LOTTERIES ARE POPULAR IN ROMANIA WHERE ECONOMIC MISMANAGEMENT HAS PRODUCED SOARING INFLATION AND UNEMPLOYMENT 9310190040 931019 WHAT'S NEWS BUSINESS AND FINANCE NEXTEL PLANS TO ACQUIRE RADIO DISPATCH UNITS OF TWO COMPANIES AND BUY AN EQUITY INTEREST IN A THIRD THE DEALS VALUED AT ABOUT 780 MILLION FURTHER NEXTEL'S EFFORTS TO BUILD A DIGITAL NETWORK TO PROVIDE WIRELESS SERVICE ON HANDSETS AND COMPETE WITH CELLULAR TELEPHONE COMPANIES SALOMON BROTHERS QUIETLY PAID OVER 30 MILLION TO SETTLE A SUIT ALLEGING THAT THE INVESTMENT BANK INFLATED ITS FEES WHEN IT ADVISED AHMANSON ON THE ACQUISITION OF BOWERY SAVINGS BANK MICROSOFT TOLD ITS MANAGERS TO CUT THE STAFF OF SOME PRODUCT GROUPS BY UP TO 5 AS THE SOFTWARE GIANT SLOWS THE PACE OF ITS WORKFORCE GROWTH LOSSES FROM MOST HEDGING TRANSACTIONS CAN BE DEDUCTED FROM TAXABLE INCOME THE IRS DECIDED REVERSING A POSITION IT HELD FOR FIVE YEARS JP MORGAN CUT ITS PRIME LENDING RATE BECOMING THE FIRST BIG BANK IN OVER A YEAR TO DO SO BUT IT'S UNCLEAR WHETHER OTHER BANKS WILL FOLLOW SUIT MORGAN LOWERED THE RATE TO 55 FROM 6 CITING WEAK LOAN DEMAND CHASE PNC BANK AND FIRST INTERSTATE SAID THIRDQUARTER EARNINGS JUMPED WHILE NATIONSBANK'S PROFIT FELL 26 BECAUSE OF ONETIME CHARGES MAJOR SECURITIES FIRMS SIGNED A PACT TO STOP MAKING POLITICAL CONTRIBUTIONS THAT GIVE THE APPEARANCE THEY ARE BUYING BONDUNDERWRITING BUSINESS FROM STATE AND LOCAL OFFICIALS NORTHWEST AIR POSTED A THIRDQUARTER PROFIT OF 1123 MILLION IN A TURNAROUND THAT FORESHADOWS STRONGER OPERATING PROFITS AT OTHER CARRIERS JOHN SCULLEY BECAME CHIEF EXECUTIVE OF SPECTRUM INFORMATION A WIRELESS TECHNOLOGY CONCERN THAT HAS SEEN CONTROVERSIES OVER ITS PATENTS SCULLEY'S MOVE COULD BE A SIGNAL THAT HE BELIEVES THE BIGGEST REVOLUTION IN TECHNOLOGY WILL COME NOT IN COMPUTERS BUT IN WIRELESS COMMUNICATIONS THE US AND MEXICO AGREED TO SET UP A DEVELOPMENT BANK TO FUND ENVIRONMENTAL CLEANUPS AT THEIR BORDER WHICH THE WHITE HOUSE HOPES WILL APPEASE SOME CRITICS OF NAFTA FORSTMANN LITTLE HIRED PAUL STERN FORMER CHAIRMAN AND CHIEF EXECUTIVE OF NORTHERN TELECOM THE PRIVATE INVESTMENT FIRM PLANS TO ACQUIRE A COMPANY THAT STERN WILL RUN LONDON SHARES CLIMBED TO A RECORD LED BY HOPES FOR LOWER INTEREST RATES STOCKS IN FRANKFURT AMSTERDAM STOCKHOLM AND HONG KONG HIT HIGHS US INVESTORS ARE BUYING FOREIGN SECURITIES AT A RECORD PACE SPURRED BY LOW INTEREST RATES IN THE US AND BOOMING OVERSEAS STOCK MARKETS FRANCE'S MACHINES BULL WILL GET ONE FINAL CAPITAL INFUSION FROM THE FRENCH GOVERNMENT AS THE COMPUTER MAKER PREPARES FOR ITS PRIVATIZATION BONDS LEHMAN BROTHERS TREASURY INDEX 573114 OFF 3576 COMMODITIES OIL 1813 A BARREL OFF 14 CENTS DOW JONES FUTURES INDEX 12858 UP 057 SPOT INDEX 11836 UP 096 DOLLAR 10740 YEN UP 025 16390 MARKS UP 00205 9310190039 931019 BUSINESS BRIEF DOMINION RESOURCES INC NET ROSE 33 IN 3RD PERIOD HOT WEATHER WAS A FACTOR DOMINION RESOURCES INC REPORTED A 33 GAIN IN NET INCOME AS EARNINGS FROM ITS VIRGINIA POWER UNIT SHOWED STRONG GROWTH DUE TO WARMERTHANUSUAL WEATHER FOR THE QUARTER THE RICHMOND VA UTILITIES HOLDING COMPANY REPORTED NET INCOME OF 199 MILLION OR 120 A SHARE COMPARED WITH 1495 MILLION OR 92 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE ROSE 19 TO 129 BILLION FROM 108 BILLION THE COMPANY ALSO INCREASED ITS QUARTERLY DIVIDEND TWO CENTS OR 33 TO 635 CENTS A SHARE THE DIVIDEND WILL BE PAID DEC 20 TO STOCK OF RECORD DEC 1 DOMINION RESOURCES SAID KILOWATTHOUR SALES FOR THE PERIOD CLIMBED NEARLY 95 AT ITS VIRGINIA POWER UNIT AS THE UTILITY'S SERVICE AREA EXPERIENCED ITS WARMEST JULY ON RECORD DOMINION STOCK ROSE 50 CENTS OR 1 TO CLOSE AT 49375 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9310190037 931019 BUSINESS BRIEF FOUNDATION HEALTH CORP COMPANY TO POST RISE IN NET FOR THE FISCAL FIRST QUARTER DANIEL CROWLEY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FOUNDATION HEALTH CORP SAID IN AN INTERVIEW HE IS QUITE COMFORTABLE WITH ANALYSTS' FORECASTING PROFIT ROSE TO ABOUT 62 CENTS A SHARE FOR ITS FISCAL FIRST QUARTER ENDED SEPT 30 THE MANAGEDHEALTHCARE COMPANY IN RANCHO CORDOVA CALIF SHOULD SEE FIRSTQUARTER NET INCOME IN THE NEIGHBORHOOD OF 18 MILLION BASED ON ROUGHLY 30 MILLION SHARES OUTSTANDING DURING THE QUARTER IN LAST YEAR'S FIRST QUARTER THE COMPANY HAD A RESTATED PROFIT OF 147 MILLION OR 49 CENTS A SHARE MR CROWLEY SAID THE COMPANY'S PERFORMANCE WAS BUOYED BY DOUBLE DIGIT GROWTH OF ENROLLMENTS IN HEALTH MAINTENANCE ORGANIZATIONS HE ALSO SAID THE COMPANY'S SPECIALTY SERVICES BUSINESS SUCH AS DENTAL AND PSYCHIATRIC CARE HAVE OUTPERFORMED OUR OWN EXPECTATIONS 9310190036 931019 INTERNATIONAL BRIEF FERRUZZI FINANZIARIA SPA TWO FOREIGN BANKS QUIT AS ADVISERS ON RESCUE PLAN THE TWO FOREIGN BANKS ADVISING ON THE FERRUZZI GROUP'S RESTRUCTURING PLAN HAVE TERMINATED THEIR CONSULTING AGREEMENT FERRUZZI SAID IN A JOINT STATEMENT WITH ITALIAN AND FOREIGN BANKS UNION BANK OF SWITZERLAND AND FRANCE'S SOCIETE GENERALE WERE NAMED ADVISERS IN JULY TO A GROUP OF FIVE ITALIAN CREDITORS LED BY MILAN MERCHANT BANK MEDIOBANCA WHICH DREW UP FERRUZZI'S RESCUE PACKAGE THE TWO FOREIGN BANKS WERE APPOINTED TO REPRESENT NONITALIAN CREDITORS WHICH ARE OWED SOME 65 TRILLION LIRE OF A TOTAL 28 TRILLION LIRE IN LOANS OUTSTANDING AT THE AGROINDUSTRIAL GROUP FERRUZZI AND THE BANKS SAID THE DECISION TO TERMINATE THE CONTRACT WAS MADE TO ALLOW ALL PARTIES INVOLVED TOTAL FREEDOM IN THE STUDY AND EVALUATION OF THE RESTRUCTURING PLAN PROPOSED BY THE FIVE ITALIAN BANKS AND FERRUZZI GROUP EXECUTIVES A GROUP OF FOREIGN BANKS LAST WEEK REJECTED THE MEDIOBANCA PLAN AND FORMED A WORKING GROUP TO MAKE NEW PROPOSALS AMONG THEIR OBJECTIONS WAS THE REQUESTED WAIVER OF 1993 INTEREST PAYMENTS BY THE FERRUZZI HOLDING COMPANIES FERRUZZI FINANZIARIA SPA AND MONTEDISON SPA 9310190035 931019 BUSINESS BRIEF SIGNET BANKING CORP THIRDQUARTER NET ROSE 60 ON HIGHER INTEREST INCOME SIGNET BANKING CORP SAID THIRDQUARTER EARNINGS JUMPED 60 ON INCREASED INTEREST INCOME AND NONINTEREST REVENUE FROM AN EXPANDING CREDITCARD PORTFOLIO THE RICHMOND VA BANK HOLDING COMPANY SAID EARNINGS TOTALED 458 MILLION OR 80 CENTS A SHARE COMPARED WITH 286 MILLION OR 51 CENTS A SHARE THE YEAR BEFORE THE 1992 PERSHARE FIGURE WAS ADJUSTED TO REFLECT A 2FOR1 COMMON STOCK SPLIT ANNOUNCED IN JUNE NET INTEREST INCOME ROSE 33 TO 1399 MILLION HELPED BY STRONG GROWTH IN CREDIT CARD LOANS AND LOWER FUNDING COSTS SIGNET SAID NONINTEREST INCOME GREW 19 TO 855 MILLION AS INCOME FROM CREDITCARD SERVICE CHARGES MORE THAN DOUBLED TO 203 MILLION AND MORTGAGE ORIGINATIONS AND SERVICING FEES ROSE 46 TO 62 MILLION LOANLOSS PROVISIONS FELL TO 125 MILLION FROM 141 MILLION SIGNET STOCK FELL 625 CENTS OR 18 TO CLOSE AT 33625 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9310190034 931019 INTERNATIONAL BRIEF TRAFALGAR HOUSE PLC COMPANY SLATES STOCK ISSUE OF AS MUCH AS 605 MILLION TRAFALGAR HOUSE PLC SAID THAT IT PLANS TO RAISE AS MUCH AS 400 MILLION 605 MILLION WITH AN ISSUE OF CONVERTIBLE PREFERENCE SHARES THE CONSTRUCTION ENGINEERING PROPERTY SHIPPING AND HOTEL CONCERN WHICH ALREADY TAPPED THE RIGHTS ISSUE MARKET FOR 2045 MILLION EARLIER THIS YEAR ALSO ANNOUNCED THAT NIGEL RICH OF HONG KONG LAND HOLDINGS WILL TAKE OVER AS ITS CHIEF EXECUTIVE OFFICER ON AUG 10 1994 THE COMPANY SAID ALLAN GORMLY ITS CURRENT CHIEF EXECUTIVE PLANS TO STEP DOWN NEXT AUGUST TO BECOME CHAIRMAN OF ROYAL INSURANCE HOLDINGS PLC TRAFALGAR HOUSE SAID ITS DECISION TO MAKE A SECOND CASH CALL REFLECTS CONTINUING RECESSION IN ITS MARKETS AND THE DIFFICULTY OF ACHIEVING MEANINGFUL ASSET SALES AT ACCEPTABLE PRICES IT SAID THE FUNDS WILL BE USED TO HELP IT DEVELOP ITS EXPANDING ENGINEERING AND CONSTRUCTION BUSINESSES TO REFURBISH ITS FLEET OF SHIPS AND TO PURSUE ITS INVESTMENT PLANS IN NEW INFRASTRUCTURE PROJECTS 9310190033 931019 BUSINESS BRIEF LITTON INDUSTRIES INC OILFIELD UNIT SEEKS TO BUY SEISMIC LINE OF HALLIBURTON THE OILFIELD SUBSIDIARY OF LITTON INDUSTRIES INC IS NEGOTIATING TO BUY THE SEISMIC BUSINESS OF HALLIBURTON CO WHICH EXPECTS TO TAKE A 200 MILLION THIRDQUARTER CHARGE TO REFLECT THE PROPOSED SALE WHILE BOTH COMPANIES SAID THEY EXPECT TO SIGN A DEFINITIVE AGREEMENT BY THE END OF THE YEAR THEY SAID THE SALES PRICE IS STILL UNDER DISCUSSION THE HALLIBURTON OPERATIONS HAD 1992 REVENUE OF ABOUT 470 MILLION THE COMPANY SAID LITTON FILED WITH THE SECURITIES AND EXCHANGE COMMISSION EARLIER THIS MONTH TO DISTRIBUTE SHARES OF ITS OILSERVICE SUBSIDIARY WESTERN ATLAS INTERNATIONAL INC HALLIBURTON BASED IN DALLAS WILL RETAIN A VARIETY OF OTHER OILSERVICE OPERATIONS IF THE SALE IS COMPLETED THE COMPANY HAD 1992 REVENUE OF 657 BILLION IN THE 1992 THIRD QUARTER HALLIBURTON HAD NET INCOME OF 33 MILLION OR 31 CENTS A SHARE ON REVENUE OF 158 BILLION HALLIBURTON ALSO SAID IT WILL RECORD A 40 MILLION GAIN IN THE QUARTER TO REFLECT A SETTLEMENT WITH THE INTERNAL REVENUE SERVICE RELATED IN PART TO TAX ASSESSMENTS FOR THE YEARS 1980 THROUGH 1987 9310190032 931019 BUSINESS BRIEF SYLVAN FOODS HOLDINGS INC COMPANY MAY SHUT A UNIT CITES REJECTION OF CONTRACT SYLVAN FOODS HOLDINGS INC SAID IT WILL SHUT DOWN ITS LARGEST BUSINESS UNIT MOONLIGHT MUSHROOMS OVER THE NEXT THREE MONTHS BECAUSE HOURLY WORKERS AT THE UNIT REJECTED A SIXYEAR CONTRACT AS A RESULT SYLVAN'S REVENUE WILL DECLINE ABOUT 45 NEXT YEAR A SPOKESMAN SAID IN SARVER PA FOR THE YEAR ENDED JAN 3 MOONLIGHT CONTRIBUTED ABOUT 45 OF SYLVAN'S 1096 MILLION IN REVENUE THE UNIT HAS BEEN LOSING MONEY SINCE THE FOURTH QUARTER OF 1991 HE SAID HOWEVER THE SPOKESMAN SAID IT'S POSSIBLE THE UNION AND COMPANY MAY YET REACH AN AGREEMENT THE PROPOSED CONTRACT CALLED FOR A CUT IN GUARANTEED BASE WAGES TO 749 AN HOUR OR 13 CENTS A POUND WHICHEVER IS HIGHER DOWN FROM THE PREVIOUS RATE OF 8 AN HOUR GUARANTEED OR 14 CENTS A POUND WHICHEVER IS HIGHER SYLVAN SAID IT PAYS 50 MORE THAN ITS COMPETITORS DO A SPOKESMAN FOR THE UNITED STEELWORKERS WHICH REPRESENTS MOONLIGHT'S 965 WORKERS CONFIRMED THAT OTHER INDUSTRY WORKERS GET PAID MINIMUM WAGE TO 5 AN HOUR 9310190031 931019 BUSINESS BRIEF LTV CORP STEELMAKER POSTS EARNINGS OF 400000 FOR 3RD QUARTER LTV CORP REPORTED A 400000 PROFIT FOR THE THIRD PERIOD THE STEELMAKER'S FIRST FULL QUARTER SINCE IT EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS BASED ON THE COMPANY'S CURRENT 723 MILLION SHARES OUTSTANDING THE PROFIT WAS MUCH LESS THAN ONE CENT A SHARE SALES IN THE PERIOD ROSE 12 TO 105 BILLION FROM 944 MILLION THE YEAR EARLIER NET INCOME FIGURES FOR THE YEAREARLIER PERIOD AREN'T COMPARABLE BECAUSE THE COMPANY WAS STILL IN CHAPTER 11 NET FOR THAT PERIOD WAS 6324 MILLION INCLUDING GAINS OF 647 MILLION ARISING FROM THE DIVESTITURE OF AN AEROSPACE AND DEFENSE BUSINESS AND 381 MILLION FROM THE COLLECTION OF A NOTE DALLASBASED LTV DIDN'T REPORT PERSHARE FIGURES FOR THE PERIOD BECAUSE THE COMPANY NOW HAS A NEW CAPITAL STRUCTURE CONSISTING OF ENTIRELY NEW ISSUES OF COMMON AND PREFERRED STOCK THE COMPANY SAID THIS WAS THE THIRD CONSECUTIVE QUARTER OF IMPROVEMENT IN OPERATING RESULTS LTV CORP HAS HEADQUARTERS IN CLEVELAND AN ARTICLE YESTERDAY INCORRECTLY SAID THAT THE STEEL AND ENERGY COMPANY IS BASED IN DALLAS 9310190030 931019 FINANCING BUSINESS SILICON VALLEY GROUP INC SILICON VALLEY GROUP INC SAN JOSE CALIF SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A PROPOSED OFFERING OF THREE MILLION COMMON SHARES AFTER THE OFFERING THERE WILL BE ABOUT 18 MILLION SHARES OUTSTANDING INDICATING A TOTAL MARKET CAPITALIZATION OF 225 MILLION PRUDENTIAL SECURITIES INC AND COWEN & CO ARE COMANAGING THE OFFERING THE COMPANY PRODUCES WAFERPROCESSING EQUIPMENT USED IN MAKING SEMICONDUCTORS 9310190029 931019 BUSINESS BRIEF VALERO ENERGY CORP BOARD APPROVES PLAN TO BUY ALL UNITS OF GAS PARTNERSHIP VALERO ENERGY CORP SAID ITS BOARD APPROVED A PROPOSAL TO ACQUIRE THE REST OF VALERO NATURAL GAS PARTNERS LP FOR 11 A UNIT OR ABOUT 1067 MILLION VALERO ENERGY AN OIL REFINER ALREADY OWNS 49 OF THE PARTNERSHIP A GASPIPELINE COMPANY THAT ALSO PRODUCES NATURALGAS LIQUIDS VALERO BASED IN SAN ANTONIO TEXAS SAID ABOUT 185 MILLION UNITS OF THE PARTNERSHIP ARE OUTSTANDING OF WHICH 97 MILLION ARE PUBLICLY TRADED THE OTHER UNITS ARE OWNED BY SUBSIDIARIES OF VALERO ENERGY YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING VALERO ENERGY COMMON CLOSED AT 2575 OFF 25 CENTS THE PARTNERSHIP'S UNITS CLOSED UNCHANGED AT 10875 EACH THE PURCHASE IS TO BE FINANCED WITH PROCEEDS FROM A CONVERTIBLE PREFERENCE STOCK OFFERING 9310190028 931019 POLITICS & POLICY US MEXICO TO SET UP BANK TO FUND ENVIRONMENTAL CLEANUPS AT THE BORDER BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US TRADE REPRESENTATIVE MICKEY KANTOR SAID THE US AND MEXICO AGREED TO SET UP A DEVELOPMENT BANK TO FUND ENVIRONMENTAL CLEANUPS AT THEIR BORDER WHICH THE CLINTON ADMINISTRATION HOPES WILL APPEASE SOME CRITICS OF THE NORTH AMERICAN FREE TRADE AGREEMENT MR KANTOR SAID HE EXPECTS TOTAL BORDER FUNDING TO REACH 7 BILLION TO 8 BILLION THAT WOULD INCLUDE ROUGHLY 2 BILLION FROM A NEW DEVELOPMENT BANK SET UP BY THE TWO COUNTRIES ABOUT 35 BILLION TO 4 BILLION WOULD BE AVAILABLE TO MEXICO FROM THE WORLD BANK AND ABOUT 2 BILLION WOULD COME FROM EXISTING ENVIRONMENTAL PROGRAMS IN BOTH NATIONS ADDITIONAL MONEY IS EXPECTED FROM PROPOSALS THAT HAVEN'T BEEN SPECIFIED CLEANING UP THE USMEXICO BORDER HAS BEEN A CONTROVERSIAL ISSUE FOR ENVIRONMENTALISTS LAWMAKERS AND COMMUNITY GROUPS CONCERNED THAT ENVIRONMENTAL PROBLEMS COULD WORSEN ALONG THE BORDER AS A RESULT OF THE TRADE AGREEMENT BUT IN ORDER TO WIN OVER THE STRONGEST SKEPTICS THE ADMINISTRATION WILL HAVE TO SPELL OUT MORE DETAILS OF THE BORDERCLEANUP FUNDING THERE ARE TWO REMAINING THORNY QUESTIONS HOW FAR THE CLEANUP PROJECTS WILL EXTEND FROM THE BORDER AND WHETHER THE PROJECTS WILL INCLUDE WORK THAT ISN'T STRICTLY ENVIRONMENTAL THE ARRANGEMENT INVOLVES TERMS THAT THE TWO SIDES HAVE BEEN DISCUSSING FOR WEEKS WHAT HAS BEEN UNCLEAR IS THE AMOUNT OF MONEY THAT EACH SIDE WOULD CONTRIBUTE TO THE NEW BANK AN ADMINISTRATION OFFICIAL YESTERDAY SAID THE US AND MEXICO ARE CONSIDERING CAPITALIZING THE DEVELOPMENT BANK AT 500 MILLION WHICH WOULD BE EQUALLY SHARED BY THE TWO NATIONS AND PAID OVER FOUR YEARS THAT BANK WOULD THEN BORROW THE PROJECTED 2 BILLION FROM INTERNATIONAL CAPITAL MARKETS THE INITIAL US PLAN FOR THE FUNDING FACILITY HAD THE US CONTRIBUTING 500 MILLION OVER FIVE YEARS AN AMOUNT EQUAL TO 85 OF THE INITIAL CAPITAL THAT WOULD HAVE GIVEN THE US A CONTROLLING INTEREST IN THE BANK BUT THAT PROPOSAL KICKED UP OPPOSITION EVEN WITHIN THE ADMINISTRATION BECAUSE IT WAS SEEN AS A HANDOUT TO MEXICO WHERE MOST OF THE ENVIRONMENTAL PROJECTS WOULD BE LOCATED IN A BRIEFING TO REPORTERS MR KANTOR SAID THE CLINTON ADMINISTRATION WILL RELEASE MORE DETAILS ABOUT THE PLAN AS EARLY AS TODAY TREASURY SECRETARY LLOYD BENTSEN AND ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR CAROL BROWNER ARE SCHEDULED TODAY TO TESTIFY ON CAPITOL HILL ABOUT THE BORDER CLEANUP AGREEMENT AS PART OF THE ACCORD MR KANTOR SAID THE US AND MEXICO ALSO WOULD SET UP A BORDER ENVIRONMENTAL AUTHORITY TO OVERSEE ADMINISTRATION OF THE PROJECTS THE AGREEMENT COMES AS THE CLINTON ADMINISTRATION TRIES TO LINE UP CONGRESSIONAL SUPPORT FOR NAFTA WHICH WOULD DISMANTLE TRADE BARRIERS AMONG THE US CANADA AND MEXICO OVER 15 YEARS THE AGREEMENT IS CONSIDERED A SURE WIN IN THE SENATE BUT IS A TOSSUP IN THE HOUSE MR KANTOR CAST THE BORDER CLEANUP AGREEMENT AS A POLITICAL PLUS FOR THE ADMINISTRATION'S EFFORT THIS IS ONE OF THE MAJOR SELLING POINTS WE BELIEVE OF THE NAFTA HE SAID THE ADMINISTRATION FACES A SKEPTICAL AUDIENCE HOUSE REPUBLICAN WHIP NEWT GINGRICH POINTEDLY WARNED PRESIDENT CLINTON YESTERDAY THAT THE AGREEMENT IS HEADED FOR DEFEAT UNLESS THE PRESIDENT ESCALATES HIS NAFTA CAMPAIGN WHICH MR GINGRICH CALLED PATHETIC TO DATE THE GEORGIAN A SUPPORTER OF THE ACCORD INSISTED REPUBLICANS WOULD OPPOSE ANY EFFORTS TO USE TAX INCREASES TO MAKE UP REVENUE LOST FROM LOWER TARIFFS IN THE PACT A CONGRESSIONAL WIN FOR NAFTA ALSO HINGES ON THE BREADTH OF A WORKERRETRAINING PLAN THE ADMINISTRATION IS ASSEMBLING REP COLLIN PETERSON D MINN CHAIRMAN OF THE HOUSE EMPLOYMENT SUBCOMMITTEE LEAKED A COPY OF A PLAN THE ADMINISTRATION IS CONSIDERING AND CALLED IT PRETTY CALLOUS MR PETERSON WHOSE SUBCOMMITTEE IS HOLDING A HEARING TODAY TO REVIEW THE PLAN SAID THE 90 MILLION CURRENTLY ALLOCATED FOR THE PLAN OFFERS TOO LITTLE MONEY TO WORKERS WHO WOULD LOSE THEIR JOBS BECAUSE OF NAFTA HOWEVER THE DRAFT SHOWS THAT RETRAINING AND INCOMESUPPORT BENEFITS FOR SUCH WORKERS WOULD HAVE TO BE CONSIDERED WITHIN 40 DAYS RATHER THAN THE ONE YEAR THAT IS OFTEN NEEDED FOR SIMILAR BENEFITS WILLIAM MURRAY CONTRIBUTED TO THIS ARTICLE 9310190027 931019 BUSINESS BRIEF BRUNSWICK CORP VERDICT IN '91 ANTITRUST CASE IS REVERSED BY APPEALS COURT BRUNSWICK CORP SAID A FEDERAL APPEALS COURT IN CALIFORNIA REVERSED A 1991 ANTITRUST VERDICT REQUIRING IT TO PAY 153 MILLION IN DAMAGES AS WELL AS INTEREST AND PLAINTIFF'S LEGAL COSTS IN MAY 1991 A FEDERAL JURY IN LOS ANGELES FOUND THAT BRUNSWICK A LAKE FOREST ILL MAKER OF MARINE AND RECREATION PRODUCTS WHOSE INTERESTS INCLUDE BOWLING FACILITIES WRONGFULLY SOUGHT TO BLOCK REALESTATE DEVELOPER LOS ANGELES LAND CO FROM BUILDING A BOWLING ALLEY IN PALMDALE CALIF BRUNSWICK SAID THE APPEALS COURT FOUND THAT LOS ANGELES LAND PURSUED A FLAWED THEORY WHICH THE DISTRICT COURT SHOULD NOT HAVE SENT TO THE JURY A SPOKESMAN SAID BRUNSWICK WON'T RECORD A GAIN FOLLOWING THE RULING IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BRUNSWICK CLOSED AT 1575 A SHARE UP 1 9310190026 931019 BUSINESS BRIEFS CASINO & CREDIT SERVICES INC'S CRW FINANCIAL DIVISION ACQUIRED OSBORNE & ASSOCIATES INC A BOSTON COLLECTION AGENCY WITH 1992 REVENUE OF ABOUT 22 MILLION INHILCO A UNIT OF HILTON INTERNATIONAL TERMINATED ITS CURRENT MANAGEMENT CONTRACT WITH WINDOWS ON THE WORLD THE WORLD TRADE CENTER RESTAURANT CLOSED SINCE THE FEBRUARY BOMBING OF THE MANHATTAN TOWERS HILTON INTERNATIONAL IS A UNIT OF LADBROKE GROUP PLC INSTITUTIONAL INVESTOR A UNIT OF CAPITAL CITIES/ABC INC SIGNED A LETTER OF INTENT TO BUY BANKCREDITANALYSIS FIRM BANKSTAT FROM BANKERS TRUST CO TERMS WEREN'T DISCLOSED DANA CORP'S PARISH VEHICULAR STRUCTURES DIVISION PLANS TO BUILD A FRAMEMANUFACTURING FACILITY IN ELIZABETHTOWN KY THAT WILL EMPLOY ABOUT 400 PEOPLE DETAILS WEREN'T DISCLOSED CLEAR CHANNEL COMMUNICATIONS INC ACQUIRED KITNTV THE FOX AFFILIATE IN MINNEAPOLIS FROM A UNIT OF NATIONWIDE MUTUAL INSURANCE CO COLUMBUS OHIO FOR ABOUT 36 MILLION THE RADIO AND TELEVISION BROADCAST CONCERN ALSO SIGNED A LETTER OF INTENT TO ACQUIRE AN OKLAHOMA CITY RADIO STATION KEBCFM FROM INDEPENDENCE BROADCASTING CO OF RIDGEFIELD CONN FOR ABOUT 75 MILLION IN CASH A MOBIL CORP CHEMICAL SUBSIDIARY WILL BUILD A 35 MILLION PLANT IN AMSTERDAM THAT MAKES PRODUCTS USED IN THE MANUFACTURE OF SYNTHETIC LUBRICANTS LCI INTERNATIONAL INC AGREED TO INVEST IN STN INC OF TORONTO GIVING IT A FOOTHOLD IN THE CANADIAN LONGDISTANCE MARKET 9310190025 931019 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED OCT 15 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER ALLEGHENY COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY PA WILL REDEEM ON NOV 15 1993 THE FOLLOWING ITS 6 7/8 ENVIRONMENTAL IMPROVEMENT REVENUE BONDS 1977 SERIES AE DUE SEP 1 1997 AND ITS 6 7/8 INDUSTRIAL DEVELOPMENT REVENUE BONDS 1977 SERIES AI DUE SEPT 1 1997 MELLON BANK PITTSBURGH IS PAYING AGENT CONNECTICUT DEVELOPMENT AUTHORITY WILL REDEEM ON NOV 15 1993 390000 PRINCIPAL AMOUNT OF ITS 61 ITS INDUSTRIAL PROJECT BONDS 1977 SERIES A THROUGH L DUE NOV 15 2003 SHAWMUT BANK HARTFORD CONN IS TRUSTEE ILLINOIS INDUSTRIAL POLLUTION CONTROL FINANCING AUTHORITY CALLS FOR PARTIAL REDEMPTION ON NOV 15 1993 ITS POLLUTION CONTROL REVENUE BONDS SERIES 1976 HARRIS TRUST & SAVINGS BANK CHICAGO IS TRUSTEE MISSOURI HOUSING DEVELOPMENT COMMISSION WILL REDEEM ON NOV 15 1993 2775000 PRINCIPAL AMOUNT OF THE FOLLOWING HOUSING DEVELOPMENT BONDS SERIES MAY 15 1982 9 DUE MAY 15 19942002 2012 AND 2023 MERCANTILE BANK OF ST LOUIS IS TRUSTEE MUSCATINE IOWA WILL REDEEM ON NOV 15 1993 ITS 8 3/8 INDUSTRIAL REVENUE BONDS SERIES 1979 DUE NOV 15 2004 FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE OHIO WILL REDEEM ON NOV 15 1993 ITS 6 7/8 ENVIRONMENTAL IMPROVEMENT REVENUE BONDS 1977 SERIES A DUE SEPT 1 1997 MELLON BANK PITTSBURGH IS TRUSTEE BROOKE GROUP LTD WILL REDEEM ON DEC 9 1993 ALL OUTSTANDING CONTINGENT VALUE RIGHTS SOCIETY NATIONAL BANK CLEVELAND IS TRUSTEE INDIANA MICHIGAN POWER CO WILL REDEEM ON NOV 14 1993 ITS 215 CUMULATIVE PREFERRED STOCK FIRST CHICAGO TRUST CO NEW YORK IS REDEMPTION AGENT OHIO POWER CO WILL REDEEM ON NOV 14 1993 ITS 776 CUMULATIVE PREFERRED STOCK FIRST CHICAGO TRUST CO NEW YORK AND HUNTINGTON NATIONAL BANK COLUMBUS OHIO ARE PAYING AGENTS 9310190024 931019 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION DAN RIVER INC AN OFFERING OF UP TO 100 MILLION OF SENIOR SUBORDINATED NOTES DUE 2003 VIA MERRILL LYNCH & CO DILLON READ & CO AND KIDDER PEABODY & CO JACOR COMMUNICATIONS INC A UNIT OF ZELL/CHILMARK FUND LP AN OFFERING OF 4750000 COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND SMITH BARNEY SHEARSON INC NETWORK IMAGING CORP AN OFFERING OF 14 MILLION SERIES A CUMULATIVE CONVERTIBLE PREFERRED SHARES VIA RAS SECURITIES CORP AND STARR SECURITIES INC SANGSTAT MEDICAL CORP AN INITIAL OFFERING OF 23 MILLION SHARES VIA SG WARBURG AND CO SANTA FE HOTEL INC AN OFFERING OF UP TO 100 MILLION OF FIRST MORTGAGE NOTES DUE 2000 AND WARRANTS TO ACQUIRE FIRST MORTGAGE NOTES VIA DONALDSON LUFKIN & JENRETTE AND BEAR STEARNS & CO 9310190023 931019 BUSINESS BRIEF GEOTEK INDUSTRIES INC AGREEMENT IS SET TO ACQUIRE METRO NET SYSTEMS FOR STOCK GEOTEK INDUSTRIES INC SAID IT SIGNED AN AGREEMENT TO ACQUIRE METRO NET SYSTEMS INC FOR 29 MILLION IN STOCK UNDER TERMS OF THE AGREEMENT CLOSELY HELD METRO NET WILL RECEIVE THREE MILLION NEWLY ISSUED GEOTEK SHARES METRO NET'S OWNERS MAY ALSO RECEIVE AN ADDITIONAL 500000 SHARES UNDER CERTAIN UNSPECIFIED CIRCUMSTANCES GEOTEK A MONTVALE NJ WIRELESSCOMMUNICATIONS CONCERN HAS ABOUT 40 MILLION SHARES OUTSTANDING METRO NET A PROVIDER OF DISPATCH AND INTERCONNECT SERVICES TO ABOUT 8000 MOBILETELEPHONE USERS OWNS ABOUT 70 CHANNELS IN THE 800 MEGAHERTZ FREQUENCY BAND IN THE NEW YORK METROPOLITAN AREA NEW YORKBASED METRO NET HAS OPERATING CASH FLOW OF 1 MILLION GEOTEK SAID IN TRADING YESTERDAY ON THE OVERTHECOUNTER MARKET GEOTEK CLOSED AT 975 A SHARE UP 25 CENTS 9310190022 931019 BUSINESS BRIEF EASTERN ENTERPRISES THIRDQUARTER LOSS IS SEEN FROM WRITEDOWN ON A SALE EASTERN ENTERPRISES WESTON MASS SAID IT PLANS TO REPORT A THIRDQUARTER LOSS RESULTING FROM A WRITEDOWN OF ABOUT 11 MILLION OR 50 CENTS A SHARE RELATED TO A PROPOSED SALE OF IONPURE TECHNOLOGIES CORP TO US FILTER CORP A SPOKESMAN DECLINED TO FURTHER QUANTIFY THE AMOUNT OF THE THIRDQUARTER LOSS THE UTILITY ALSO SAID THAT RESULTS OF ITS MIDLAND ENTERPRISES UNIT FOR THE THIRD QUARTER AND FULL YEAR WILL BE SIGNIFICANTLY LOWER THAN PREVIOUSLY EXPECTED IN THE YEARAGO THIRD QUARTER EASTERN REPORTED A LOSS OF 36 MILLION OR 16 CENTS A SHARE ON REVENUE OF 2033 MILLION EASTERN SAID THAT IT EXPECTS ITS PERSHARE EARNINGS FOR 1993 TO BE BETWEEN 105 AND 120 EXCLUSIVE OF THE WRITEDOWN RELATED TO IONPURE FOR 1992 THE COMPANY HAD NET INCOME OF 461 MILLION OR 204 A SHARE ON REVENUE OF 109 BILLION INCLUDED IN THE YEARAGO EARNINGS WAS A CREDIT OF 82 MILLION FOR CUMULATIVE EFFECT OF ACCOUNTING CHANGES IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE STOCK CLOSED AT 28625 DOWN 125 CENTS 9310190021 931019 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 BALTIMORE GAS & ELECTRIC CO 125 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE APRIL 15 2004 PRICED AS 55S AT 98589 TO YIELD 568 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 475 BASIS POINTS ABOVE TREASURYS THE BONDS ARE RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE BONDS WERE SOLD THROUGH A COMPETITIVE BID WON BY KIDDER PEABODY & CO CIT GROUP HOLDINGS INC 200 MILLION OF DEBENTURES DUE OCT 15 2008 PRICED AS 5875S AT 9927 TO YIELD 5949 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO CIT IS A UNIT OF CHEMICAL BANKING CORP AND DAIICHI KANGYO BANK FEDERAL HOME LOAN BANK SYSTEM 105 MILLION OF DEBENTURES DUE OCT 26 2000 PRICED AT PAR TO YIELD 504 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 22 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC PENNSYLVANIA POWER & LIGHT CO 150 MILLION OF FIRSTMORTGAGE BONDS DUE OCT 1 2023 PRICED AS 675S AT 98979 TO YIELD 683 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON PHILLIPS PETROLEUM CO 250 MILLION OF FIRSTMORTGAGE BONDS DUE NOV 1 2023 PRICED AT PAR TO YIELD 72 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 122 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CLUB CAR INC INITIAL OFFERING OF 41 MILLION COMMON SHARES PRICED AT 1750 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1993226 IS BACKED BY THE AGENCY'S 30YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 67 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY CS FIRST BOSTON THE OFFERING SERIES 1993229 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 650 AND WEIGHTED AVERAGE MATURITY OF 177 MONTHS DISCOVER 797873 MILLION OF CREDITCARD ASSETBACKED CERTIFICATES PRICED IN TWO PARTS BY UNDERWRITERS LED BY DEAN WITTER REYNOLDS INC ACCORDING TO MCM CORPORATEWATCH THE 750 MILLION OF CLASS A CERTIFICATES WAS PRICED AT PAR WITH AN INITIAL COUPON OF 34575 TO FLOAT 27 BASIS POINTS ABOVE THE LONDON INTERBANK OFFERED RATE TO A 12 CAP THE CERTIFICATES RATED TRIPLEA BY MOODY'S AND S&P HAVE AN AVERAGE LIFE OF FIVE YEARS THE 47873 MILLION OF CLASS B SUBORDINATE FIXEDRATE CERTIFICATES WAS PRICED AS 53S AT 99854 TO YIELD 539 A 625BASISPOINT SPREAD ABOVE THE TREASURY'S 9125 NOTE OF MAY 1999 THE CERTIFICATES RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P ARE DUE MAY 15 1999 CREDIT ENHANCEMENT IN THE STRUCUTURE INCLUDED A 45 CASH COLLATERAL ACCOUNT THE CREDIT CARDS ARE ISSUED THROUGH A UNIT OF DEAN WITTER DISCOVER & CO CAISSE CENTRALE DE CREDIT IMMOBILIER FRANCE 12 BILLION YEN OF 375 UNSECURED EUROBONDS DUE NOV 17 1998 AT ISSUE PRICE 1016 VIA NOMURA INTERNATIONAL PLC AT COMANAGERS' BREAKEVEN PRICE 99725 BONDS YIELD 3811 FEES 1875 CN PEREZ COMPANC SACFIMFA ARGENTINA 100 MILLION OF 725 EUROBONDS DUE OCT 25 1996 AT ISSUE AND FIXED REOFFER PRICE 99973 VIA CHASE INVESTMENT BANK LTD BONDS YIELD A SPREAD OF 325 BASIS POINTS ABOVE COMPARABLE TREASURY FEES 06 COMMERZBANK OVERSEAS FINANCE CURASAL NV GERMAN PARENT 150 BILLION LIRE OF 8 EUROBONDS DUE NOV 10 2003 AT ISSUE PRICE 1018 VIA LEAD BOOK RUNNER BANCA DI ROMA SPA AT COMANAGERS' BREAKEVEN PRICE 998 BONDS YIELD 803 GUARANTOR COMMERZBANK AG FEES TWO DRESDNER BANK AG GERMANY 200 MILLION OF 6 SURBORDINATED EUROBONDS DUE NOV 3 2008 AT ISSUE PRICE 101625 FOR OWN ACCOUNT WITH LEHMAN BROTHERS INTERNATIONAL AS JOINT BOOK RUNNER REOFFERED 99875 TO YIELD 6013 A MARGIN OF 76 BASIS POINTS ABOVE 10YEAR TREASURY FEES 225 NIPPON OIL FINANCE NETHERLANDS BV JAPANESE PARENT 53 BILLION YEN OF 315 EUROBONDS DUE APRIL 25 1997 AT ISSUE AND FIXED REOFFER PRICE 100315 VIA SANWA INTERNATIONAL PLC BONDS YIELD 3399 KEEPWELL AGREEMENT WITH NIPPON OIL CO FEES 025 SEALS NO 3 LTD GERMANY 200 MILLION MARKS OF 6 EUROBONDS DUE NOV 24 2003 AT ISSUE PRICE 1016 VIA LEAD UNDERWRITER MERRIL LYNCH BANK AG AT COMANAGERS' BREAKEVEN PRICE 991 BONDS YIELD 612 A SPREAD OF 25 BASIS POINTS OVER COMPARABLE GERMAN BUND NOTES SECURED AGAINST TRIPLEA RATED DEBT OF GERMAN STATES OF HESSEN AND BADEN WURTTEMBERG FEES 25 SEIKAGAKU CORP JAPAN 130 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 0125 NOTES DUE MAR 31 1998 AT PAR VIA NIKKO BANK SWITZERLAND LTD EACH NOTE CONVERTIBLE FROM NOV 23 1993 TO MAR 24 1998 AT 25 PREMIUM OVER CLOSING SHARE PRICE OCT 20 WHEN TERMS FIXED FEES 1625 SNS GROUP NV NETHERLANDS 350 MILLION DUTCH GUILDERS OF 6 EUROBONDS DUE NOV 15 1999 AT ISSUE PRICE 1008 VIA VAN HAFTEN LABOUCHERE NV REOFFERED AT 1001 TO YIELD 598 A MARGIN OF 37 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE SWEDEN SOVEREIGN 250 MILLION CANADIAN DOLLARS OF 7 EUROBONDS DUE DEC 1 2008 AT ISSUE PRICE 9995 VIA HAMBROS BANK LTD REOFFERED AT 97825 TO YIELD 724 FEES 25 TELECOMUNICACOES BRASILEIRAS SA TELEBRAS BRAZIL 20 BILLION YEN OF 72 EUROBONDS DUE OCT 28 1996 AT ISSUE AND FIXED REOFFER PRICE PAR VIA NOMURA INTERNATIONAL PLC BONDS YIELD 72 FEES ONE TREASURY CORP OF VICTORIA AUSTRALIA 100 MILLION AUSTRALIAN DOLLARS OF 7125 EUROBONDS DUE NOV 29 2005 AT ISSUE PRICE OF 10145 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD BONDS YIELD 723 AFTER DEDUCTING FEES OF 225 GUARANTOR GOVERNMENT OF VICTORIA TURKEY SOVEREIGN ONE BILLION MARKS OF 725 EUROBONDS DUE OCT 29 1998 AT ISSUE PRICE 10155 VIA DEUTSCHE GENOSSENSCHAFTSBANK AT RECOMMENDED REOFFER PRICE 9955 BONDS YIELD 736 FEES 25 INCLUDING SPECIAL LEAD MANAGER'S FEE OF 0125 9310190020 931019 BUSINESS BRIEF CIGA SPA ACTION IS DELAYED ON DEAL GIVING CONTROL TO FORTE PLC DIRECTORS OF CIGA SPA AND ITS PARENT COMPANY CONTROLLED BY THE AGA KHAN THE BILLIONAIRE SPIRITUAL LEADER OF THE WORLD'S ISMALI MUSLIMS POSTPONED UNTIL NOV 9 ANY ACTION ON A DEAL THAT WOULD GIVE CONTROL OF THE ITALYBASED LUXURY HOTEL CHAIN TO FORTE PLC IN A DAYLONG BOARD MEETING DIRECTORS OF CIGA AND THE AGA KHAN'S HOLDING COMPANY FIMPAR SPA HEARD OF THE DEAL FROM MEDIOBANCA WHICH IS OVERSEEING THE HOTEL CHAIN'S RESTRUCTURING FACED WITH ABOUT 666 MILLION IN DEBT AND A DWINDLING DEMAND FOR 400ANIGHT HOTEL ROOMS CIGA WENT INTO DEFAULT ON ITS LOANS EARLIER THIS YEAR AND ITS SHARES WERE SUSPENDED FROM THE ITALIAN STOCK EXCHANGE FORTE THE UK'S LARGEST HOTEL CHAIN ON FRIDAY SAID IT HAD SIGNED A PRELIMINARY AGREEMENT WITH MEDIOBANCA TO TAKE OVER MANAGEMENT OF CIGA'S 35 LUXURY HOTELS THE UK COMPANY ALSO WOULD GAIN A 51 STAKE IN CIGA 9310190019 931019 THE FRUGAL SKIES MONEYLOSING ROUTES PROMPT BIG CARRIERS TO MULL RADICAL STEPS UNITED PLANS LOWCOST UNIT TO COMPETE IN THE US WITH LIKES OF SOUTHWEST AN AIRLINE WITHIN AN AIRLINE BY ROBERT L ROSE AND SUSAN CAREY STAFF REPORTERS OF THE WALL STREET JOURNAL CHICAGO CONCLUDING THEY CAN'T TURN A PROFIT ON SHORT DOMESTIC ROUTES OFFICIALS OF UNITED AIRLINES ARE TRYING TO REMAKE THE CARRIER IN A WAY THAT WOULD UNDO DECADES OF MORE IS BETTER THINKING IF LABORMANAGEMENT TALKS SUCCEED UAL CORP'S UNITED WOULD BECOME A TWOTIER AIRLINE CONTROLLED BY ITS WORKERS OVERSEAS FLIGHTS AND THE DOMESTIC ROUTES THAT FEED THEM WOULD CARRY ON AS UNITED SHORTER DOMESTIC RUNS WOULD BE OPERATED BY A LEANER NEW ENTITY U2 ONE OF THE WORKING NAMES BEING BANDIED ABOUT FOR THIS AIRLINEWITHINANAIRLINE WOULD OFFER LOWER FARES ON HUNDREDS OF ROUTES AS THE NEW CARRIER RETURNED TO MARKETS ABANDONED AS TOO COSTLY AND EXPANDED TO NEW ONES USING COMPACT BOEING 737 PLANES U2 WOULD SKIMP ON MEAL SERVICE BUT STILL OFFER ASSIGNED SEATS AND FREQUENTFLIER MILEAGE THE DETAILS COULD STILL CHANGE OR THE TALKS COULD COLLAPSE PERHAPS PLUNGING UNITED INTO ALLOUT WAR WITH ITS WORKERS YET BEHIND THE PLANNING FOR U2 IS AN EXTRAORDINARY ADMISSION BY UNITED WE REALIZE WE CAN'T COMPETE WITH SOUTHWEST SAYS STEPHEN WOLF UNITED'S CHAIRMAN AND CHIEF EXECUTIVE NO ONE'S AT FAULT NO ONE'S A DUMMY IT'S JUST A FACT UNITED NECK AND NECK WITH AMR CORP'S AMERICAN AIRLINES AS THE NATION'S LARGEST CARRIER ISN'T ALONE IN THIS VIEW OF THE LOWCOST EFFICIENT AND PROFITABLE SOUTHWEST AIRLINES ALTHOUGH IT APPEARS TO BE AHEAD IN SEEKING REMEDIES USAIR GROUP INC'S USAIR AND DELTA AIR LINES ALSO ARE EXPLORING LOWCOST OPTIONS FOR SOME DOMESTIC ROUTES AMERICAN WHILE SEEKING BROAD WORKRULE CHANGES SEEMS PREPARED TO CEDE MUCH OF ITS SHORTHAUL FIELD TO SMALLER MOREEFFICIENT OPERATORS THE REASON IS SIMPLE AIRLINE EXECUTIVES LIKE THOSE IN OTHER INDUSTRIES HAVE DISCOVERED A FACT OF LIFE IN THE 1990S CONSUMERS WILL SHOP ELSEWHERE IF THE PRICE IS TOO HIGH THERE IS A SEA CHANGE IN SOCIETY SAYS MR WOLF PRUDENCE IS CREEPING IN MAJOR CARRIERS ARE REACTING TO WHAT SOME CALL THE SOUTHWEST EFFECT BY PULLING OUT OF MONEYLOSING DOMESTIC ROUTES AND TURNING OTHERS OVER TO REGIONAL ALLIES UNITED AND AMERICAN BOTH PULLED OUT OF MANY CALIFORNIA MARKETS AFTER MEETING SOUTHWEST'S LOW FARES FOR A TIME AND LOSING A BUNDLE UNITED QUIT SERVING ROUTES LIKE FARGO ND TO DENVER HANDING THE MARKET TO REGIONAL PARTNER GREAT LAKES AVIATION WHICH HAS 19PASSENGER TURBOPROPS AND FLIES AS UNITED EXPRESS BUT THOSE MOVES AREN'T ENOUGH TO STANCH THE LOSSES AT MOST BIG CARRIERS AND PLUG THE INEFFICIENCIES ON US AIRLINES' DOMESTIC NETWORKS U2 AND STUDIES UNDER WAY AT OTHER CARRIERS SHOW THAT AFTER YEARS OF IGNORING THE PROBLEM MAJOR AIRLINES ARE ENTERTAINING RADICAL NEW SOLUTIONS THIS IS NO LONGER A CYCLICAL ISSUE DECLARES MR WOLF IT'S A SECULAR ONE WE WILL NOT SEE A WAVE OF REVENUE TO CURE THE PROBLEM UNITED HAS AN EVEN MORE DRASTIC OPTION IF CURRENT TALKS WITH ITS UNIONS FAIL IN A MOVE THAT WOULD AMOUNT TO A CORPORATE CRY OF UNCLE UNITED COULD LET ANOTHER OPERATOR TAKE OVER THE SHORT ROUTES POSSIBLY LEASING ITS OWN PLANES TO A NONUNION CARRIER IT ALREADY HAS TALKED WITH AMERICA WEST AIRLINES ABOUT FLYING SUCH ROUTES UNITED'S POWERFUL PILOTS' UNION HAS WARNED THAT IT WOULD FIGHT SUCH A STEP WHAT WOULD HAPPEN IF UNITED PROCEEDED PROBABLY ARMAGEDDON SAYS RANDOLPH BABBITT NATIONAL PRESIDENT OF THE AIR LINE PILOTS ASSOCIATION SUCH A REVAMPING OF DOMESTIC OPERATIONS COULD BE PART OF AN EVOLUTION IN WHICH BIG CARRIERS EVENTUALLY DIVEST THEMSELVES OF MANY FUNCTIONS THEY PERFORM TODAY EVEN FLYING AND FOCUS ON WHAT THEY DO BEST THE TREND IS ALREADY EVIDENT IN THE PAST SEVERAL YEARS AIRLINES HAVE SOLD ANCILLARY COMPANIES SUCH AS HOTELS FLIGHT KITCHENS AND TRAINING ACADEMIES NOW IT SEEMS CHUNKS OF THE DOMESTIC NETWORKS MAY HAVE TO GO LEAVING THE MAJORS TO CONCENTRATE ON OVERSEAS MARKETS IN WHICH THEIR COST STRUCTURES AND MARKETING KNOWHOW MAKE THEM HIGHLY COMPETITIVE IN THE END THEORETICALLY AN AIRLINE COULD HANG ONTO ONLY A NAME A ROUTE NETWORK AND A RESERVATIONS SYSTEM SAYS ALBERT DELAURO DIRECTOR OF THE TRANS PORTATION PRACTICE OF CONSULTANTS TOWERS PERRIN EVERYTHING ELSE IS CONTRACTED OUT WHY NOT IT'S VERY MUCH A COMMODITY BUSINESS FOR NOW UNITED'S PILOTS AND MACHINISTS UNIONS ARE COOPERATING WITH THE TWOTIER PLAN THEIR GOAL IS TO STOP THE AIRLINE FROM CONTRACTING OUT JOBS AND LOPPING OFF MORE SHORT ROUTES BUT THE UNIONS REALIZE THE DAYS OF TRYING TO HOLD GROUND AGAINST LOWCOST COMPETITORS ARE OVER EVERY AIRLINE'S GOT TO RESTRUCTURE SAYS JOHN PETERPAUL CHIEF AIRLINE NEGOTIATOR FOR THE INTERNATIONAL ASSOCIATION OF MACHINISTS THE CARRIERWITHINACARRIER IDEA COULD GO THE WAY OF OTHER INDUSTRY FADS OF COURSE IN THE 1980S MAJOR AIRLINES ONEUPPED EACH OTHER WITH HUGE ORDERS FOR NEW PLANES BUT LATELY THEY HAVE STAMPEDED TO CANCEL AND DEFER THOSE SAME ORDERS CARRIERS RACED TO BUILD HUBS IN THE 1980S ONLY TO CUT THEM BACK IN THE 1990S FIVE YEARS FROM NOW WE MAY SIT BACK AND LOOK AT THIS CONCEPT OF SOUTHWEST EATING THE US MARKET AS OVERBLOWN SAYS JON ASH OF WASHINGTON CONSULTANTS GLOBAL AVIATION ASSOCIATES LTD WHILE THE U2 PLAN IS A BOLD MOVE FOR UNITED THERE ALREADY ARE MODELS CONTINENTAL AIRLINES' EXPERIMENTAL AIRLINEWITHINANAIRLINE CALITE TOOK WING OCT 1 WITH A LOWPRICE QUICKTURNAROUND SERVICE THAT LINKS 14 CITIES IN THE SOUTHEAST LUFTHANSA THE GERMAN FLAG CARRIER IS EXPANDING ITS LOWERCOST DOMESTIC AIRLINE LUFTHANSA EXPRESS TO SERVE ALL OF CONTINENTAL EUROPE AND AVENSA A PRIVATE VENEZUELAN CARRIER HAS SHIFTED MOST OF ITS INTERNATIONAL ROUTES TO ITS NONUNION SERVIVENSA UNIT WHICH HAS OPERATING COSTS THAT ARE 40 LOWER EVEN UNITED'S MR WOLF HAS TAKEN ADVANTAGE OF THE LOWERPRICE CARRIERS WHEN HE INVITED HIS SISTER'S FAMILY TO HIS HOME IN NEW MEXICO LAST SUMMER HE BOOKED THEM ON SOUTHWEST'S SAN FRANCISCOALBUQUERQUE FLIGHT BUT WHEN STEPHEN WOLF THE CONSUMER BECOMES STEPHEN WOLF THE COMPETITOR HE WOULD RATHER SEE DALLASBASED SOUTHWEST GO AWAY WHY DON'T YOU MOVE YOUR HEADQUARTERS TO GUAM HE HAS JOKINGLY SUGGESTED TO HERB KELLEHER SOUTHWEST'S CHAIRMAN BIG US CARRIERS MAY HAVE TO REVISIT THEIR LABOR CONTRACTS IN THE HOPES OF FORMING ANYTHING THAT RESEMBLES CALITE USAIR SAYS THAT FOR THE PAST 10 MONTHS IT HAS BEEN STUDYING WAYS TO MAKE ITS SHORT ROUTES WHICH ACCOUNT FOR A THIRD OF ITS DOMESTIC NETWORK MORE COST EFFICIENT BUT THE CARRIER WON'T SAY WHETHER IT IS CONSIDERING LAUNCHING ITS OWN VERSION OF CALITE A FAR MORE DIFFICULT PROCESS FOR A UNIONIZED CARRIER THAN FOR CONTINENTAL DELTA SAYS IT TOO HAS BEEN STUDYING OPTIONS ON ITS SHORTER ROUTES ALREADY IT HAS SHIFTED SOME TO ITS LOWERCOST REGIONAL COMMUTERS AMERICAN AIRLINES STUDIED AND THEN SHELVED THE CARRIERWITHINACARRIER CONCEPT NOW IT IS DROPPING UNPROFITABLE ROUTES AND TRANSFERRING OTHERS TO ITS WHOLLY OWNED REGIONAL SUBSIDIARIES WHICH OPERATE AS AMERICAN EAGLE AMR CHAIRMAN ROBERT CRANDALL TOLD EMPLOYEES LAST MONTH THAT HE DOESN'T WANT TO CUT THEIR WAGES BUT HE SAID HE NEEDS SWEEPING CHANGES IN WORK RULES REQUIRING A COMPLETE RETHINKING OF PAST PRACTICES AS UNITED PROCEEDS WITH ITS PLAN MR WOLF PONDERS THE MANY SOUTHWEST IMITATORS THAT ARE CHIPPING AWAY AT THE ONCEGOLDEN FRANCHISES OF THE MAJORS HE MENTIONS MARKAIR THE ALASKAN UPSTART THAT JUST SET UP A HUB IN DENVER WHERE UNITED AND CONTINENTAL ONCE HAD THE BATTLE TO THEMSELVES DID YOU KNOW RENO AIR HAS 16 MD80S MR WOLF ASKS REFERRING TO THE FASTGROWING FLEET OF ANOTHER NEW CARRIER I THOUGHT THEY ONLY HAD SIX OR SEVEN US CARRIERS AREN'T THE FIRST TO GRAPPLE WITH RUNAWAY COSTS IN SHORTHAUL OPERATIONS MORE THAN THREE YEARS AGO SEVERAL HIGHCOST EUROPEAN CARRIERS STARTED SHEDDING UNITS OR SPINNING THEM OFF INTO SEPARATE COMPANIES WITH CHEAPER EMPLOYMENT CONTRACTS THE AIRLINES MOVED SOME OPERATIONS TO LOWERWAGE AREAS HIRED MORE FOREIGN WORKERS ASKED FOR WAGE FREEZES AND USED MORE PARTTIMERS ASIAN AIRLINES RECENTLY STARTED TAKING SUCH STEPS TO GET THEIR COSTS UNDER CONTROL LUFTHANSA WHICH EARLIER THIS MONTH SIGNED A MARKETING ALLIANCE WITH UNITED PROBABLY HAS DONE THE MOST IN THE U2 VEIN WITHOUT RESORTING TO NONUNION LABOR THE UNIONIZED GERMAN CARRIER SHIFTED EMPLOYEES OF ITS CONDOR CHARTER SUBSIDIARY TO THE PARENT AND HIRED LESSEXPENSIVE EMPLOYEES FOR CONDOR IT DID THE SAME WITH ITS CARGO UNIT BOTH SUBSIDIARIES THEN RETURNED TO PROFITABILITY LUFTHANSA ALSO FORMED A SEPARATE JET AIRLINE TO SERVE THE MONEYLOSING GERMAN MARKET WHILE LUFTHANSA EXPRESS PILOTS EARN AS MUCH AS THOSE AT LUFTHANSA THE PARENT COMPANY CUT COSTS BY BASING PILOTS AT THEIR HOMES AND PUTTING CABIN ATTENDANTS ON SALARIES 40 LOWER THAN REGULAR LUFTHANSA FLIGHT ATTENDANTS LUFTHANSA ESTIMATES THESE ACTIONS HELPED IT SAVE THE EQUIVALENT OF ABOUT 217 MILLION LAST YEAR THE STATECONTROLLED GERMAN CARRIER BOOSTED PRODUCTIVITY AS WELL IN ITS 1990 PILOTS' CONTRACT FOR INSTANCE PILOTS AGREED TO FLY A MINIMUM OF 75 HOURS A MONTH UP FROM 53 HOURS A MONTH SAYS OLIVER WILL A SPOKESMAN FOR THE GERMAN PILOTS' ASSOCIATION THIS WAS IN RETURN FOR KEEPING JOBS AT LUFTHANSA EXPRESS AT UNITED MR WOLF BOASTED AS RECENTLY AS FEBRUARY 1992 THAT NEW LABOR CONTRACTS MEANT IMPROVED WAGES AND BENEFITS FOR WORKERS AND AN UNPRECEDENTED PERIOD OF STABILITY FOR THE AIRLINE INSTEAD 1992 TURNED OUT TO BE ONE OF THE WORST YEARS EVER FOR THE AIRLINE AND THE INDUSTRY HURT BY FARE CUTS AND WEAK GLOBAL ECONOMIES UNITED LOST 417 MILLION AN AMOUNT THAT BALLOONED TO 957 MILLION AFTER AN ACCOUNTING CHANGE THAT PROMPTED A CHANGE IN STRATEGY FOR 1993 FROM AGGRESSIVE GROWTH TO STRINGENT COST CONTAINMENT THE COMPANY SAYS TO VALIDATE ITS BELIEF THAT THE AIRLINE BUSINESS WAS IN FOR PERMANENT CHANGE UNITED EARLY THIS YEAR HIRED BOOZ ALLEN & HAMILTON INC TO STUDY THE STATE OF THE INDUSTRY REPORTING BACK TO THE CARRIER'S BOARD THE CONSULTING FIRM CONFIRMED THE BASIC ANALYSIS DOMESTIC OPERATIONS ARE DRAGGING DOWN THE AIRLINE AND AN ECONOMIC REBOUND WON'T FIX IT UNITED MADE THE BOOZ ALLEN FINDINGS AVAILABLE TO LABOR WHICH IT HAD APPROACHED FOR BIG CONCESSIONS LAST JANUARY MACHINISTS AND FLIGHT ATTENDANTS QUICKLY REJECTED THE REQUEST FOR GIVEBACKS BUT THE PILOTS' INVESTMENT ADVISER CONCLUDED THAT THINGS HAD TO CHANGE MEANWHILE UNITED FORGED AHEAD WITH PLANS TO CUT COSTS AND UNION JOBS IT SUBCONTRACTED OUT THE WORK OF JANITORS AND SKYCAPS AND ANNOUNCED PLANS TO SELL ITS US FLIGHT KITCHENS AND TO BASE MORE FLIGHT ATTENDANTS ABROAD IT ALSO FLOATED THE IDEA OF SPINNING OFF ITS SHORTHAUL OPERATIONS INTO A LOWCOST NONUNION AIRLINE OUR AIRLINE IS BEING POSITIONED FOR DOWNSIZING AND DISMANTLING PILOT LEADER ROGER HALL WROTE TO HIS MEMBERS UNITED EMPLOYEES ALSO WATCHED THEIR COUNTERPARTS AT FINANCIALLY DISTRESSED NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC BEING FORCED TO ACCEPT HUGE CONCESSIONS TO KEEP THAT COMPANY OUT OF BANKRUPTCY COURT SO UNITED'S UNIONS DECIDED TO ACT WHILE UAL WAS BASICALLY STILL HEALTHY THEY PROPOSED CONCESSIONS OF 335 BILLION OVER FIVE YEARS IN RETURN FOR MAJORITY OWNERSHIP OF UAL WITH THAT ON THE TABLE TALKS COMMENCED BY LATE AUGUST DISCUSSIONS HAD CRYSTALLIZED AROUND THE U2 PROJECT LAST MONTH FLIGHT ATTENDANTS QUIT THE BARGAINING COALITION BECAUSE UNITED PROCEEDED WITH A PLAN TO BASE SOME CABIN ATTENDANTS IN TAIWAN BUT PILOTS AND MACHINISTS ARE PRESSING AHEAD HOPING AN ACCORD WILL LEAD THE COMPANY TO CANCEL THE PLANNED NOV 13 SALE OF THE FLIGHT KITCHENS ALTHOUGH NEITHER SIDE WILL PUBLICLY COMMENT ON THE NEGOTIATIONS THE UNIONS ALREADY HAVE DISCUSSED CRUCIAL CHANGES IN WORK RULES ON THE SHORTER ROUTES THAT U2 WOULD FLY INDIVIDUALS FAMILIAR WITH THE UNIONS' LATEST POSITION SAY LOWER WAGES AND WORKRULE CHANGES AT U2 COULD AMOUNT TO 1 BILLION IN SAVINGS OVER FIVE YEARS WITH LOWER LABOR COSTS NO FRILLS AND A SIMPLE FLEET THE NEW CARRIER POSSIBLY COULD MEET THE CHALLENGE POSED BY SOUTHWEST AND OTHER LOWCOST JET CARRIERS IN FACT THE NEW COMPANY COULD BECOME THE ENGINE OF UNITED'S FUTURE DOMESTIC GROWTH HIRING NEW WORKERS AT LOWER WAGES IN THIS NEW AIRLINE FLIGHT ATTENDANTS MIGHT FLY MORE THAN THEIR CURRENT MAXIMUM OF SIX HOPS A DAY PILOTS WOULD FLY MORE HOURS THAN 50 A MONTH MACHINISTS WOULD HELP BY ALLOWING THEIR MECHANICS TO WORK ON AIRPLANES MOTOR VEHICLES AND OTHER EQUIPMENT RATHER THAN SPECIALIZING IN JUST ONE JOB TO SOME SUCH CHANGES ARE LONG OVERDUE A MARCH STUDY BY MERRILL LYNCH & CO ANALYST CANDACE BROWNING FOUND THAT UNITED SPENDS 395 CENTS OF EACH DOLLAR OF REVENUE FOR SALARIES AND BENEFITS COMPARED WITH 308 CENTS AT SOUTHWEST THE CONCLUSION SOUTHWEST CAN UNDERCUT UNITED BY 25 AND STILL TURN A PROFIT BUT UNION LEADERS MAKE A CRUCIAL DISTINCTION BY AVOIDING HUBS AND OPERATING POINT TO POINT SOUTHWEST GETS MORE FLYING TIME OUT OF ITS PLANES AND ITS WORKERS TO BLAME WORKERS FOR BIG AIRLINES' PROBLEMS IS LUDICROUS SAYS MR BABBITT OF THE AIR LINE PILOTS ASSOCIATION THEY'RE SIMPLY NOT GETTING THE UTILIZATION OUT OF THEIR PILOTS AND THEY WON'T UNTIL THEY SCHEDULE THEIR EQUIPMENT BETTER HE SAYS OF THE MAJOR HUB CARRIERS SOUTHWEST KNOWS IT IS THE OBJECT OF INTENSE SCRUTINY BY ITS LARGER COMPETITORS BUT THE CARRIER ISN'T WORRIED GARY KELLY SOUTHWEST'S CHIEF FINANCIAL OFFICER CONTENDS THAT HIS COMPANY'S COST DIFFERENTIAL IS SO SIGNIFICANT THAT CLONES WILL ALWAYS FALL SHORT MOREOVER SOUTHWEST HAS THE MARKETING ADVANTAGE OF BEING KNOWN AS THE LOWCOST AIRLINE HE SAYS IT IS ONLY THE LIMITS OF CAPITAL AND STAFF THAT FORCE SOUTHWEST TO TURN PASSENGERS AWAY AND PASS BY THE MANY LUCRATIVE OPPORTUNITIES IN ITS PATH AND NO MR KELLY ADDS SOUTHWEST WON'T BE MOVING TO GUAM 9310190018 931019 BUSINESS BRIEF LSI LOGIC CORP THIRDQUARTER RESULTS SWING TO PROFIT ON BIGGER MARGINS LSI LOGIC CORP POSTED THIRDQUARTER NET INCOME OF 144 MILLION OR 29 CENTS A SHARE CITING FATTENED PROFIT MARGINS FROM COSTCUTTING AND RESTRUCTURING THE RESULTS WHICH WERE ON TARGET WITH ANALYSTS' EXPECTATIONS COMPARE WITH A RESTRUCTURINGRELATED LOSS OF 111 MILLION OR 251 A SHARE A YEAR EARLIER FOR THE QUARTER THE MILPITAS CALIF SEMICONDUCTOR MAKER SAID REVENUE GREW 19 TO 184 MILLION GROSS PROFIT MARGINS FOR THE PERIOD ROSE TO 391 FROM 32 A YEAR EARLIER OPERATING EXPENSES AS A PERCENTAGE OF REVENUE FELL TO 267 FROM 339 BEFORE THE RESTRUCTURING CHARGE 9310190017 931019 IT WILL BE THE RIVER OF NO RETURNS IF INDIANA DOESN'T GET A NEW DEAL BY VITO J RACANELLI SPECIAL TO THE WALL STREET JOURNAL THE OHIO RIVER BELONGS TO ONE OF THE FOLLOWING THE PEOPLE THE FEDERAL GOVERNMENT THE STATES BORDERING IT THE THIRD ANSWER IS CLOSEST TO BEING RIGHT THE RIVER AT LEAST THE PART FLOWING PAST OHIO INDIANA AND ILLINOIS BELONGS MOSTLY TO NEIGHBORING KENTUCKY UNTIL RECENTLY OWNERSHIP OF THE RIVER MATTERED MAINLY TO THE VARIOUS SPORTSMEN AND BARGE HAULERS WHO HAVE TO PAY FEES AND TAXES TO KENTUCKY BUT INDIANA IS THREATENING TO LAUNCH RIVERBOAT GAMBLING ON THE OHIO NEXT YEAR AND SUDDENLY IT MATTERS A GREAT DEAL WHO OWNS THE RIVER WHEN INDIANA LAWMAKERS SANCTIONED GAMBLING CRUISES ON THE OHIO AND TWO LAKES THIS PAST SUMMER THEY DID SO DESPITE ONE IMPORTANT FACT THE BORDER ESTABLISHED 200 YEARS AGO GAVE KENTUCKY THE OHIO RIVER FROM ITS SHORE TO THE LOWWATER MARK ON THE NORTHERN BANK THE INDIANA SIDE A 1985 US SUPREME COURT DECREE BASICALLY REAFFIRMED THAT BOUNDARY GIVING INDIANA ABOUT 100 FEET OF RIVER FROM ITS SHORE AND THE REST TO KENTUCKY THE OWNERSHIP STATUS IS CRUCIAL BECAUSE CASINOSTYLE GAMBLING IS ILLEGAL IN KENTUCKY AND THAT INCLUDES ON THE RIVER RIGHT UP TO DECREED 100 FEET FROM THE INDIANA SHORE ASSERTS KENTUCKY ATTORNEY GENERAL CHRIS GORMAN THAT LEAVES LITTLE ROOM FOR CRUISING THE TROUBLED WATERS INDIANA'S NEW GAMBLING LAW SPECIFIES THAT THE BOATS MUST CAST OFF AND GET UNDER WAY BUT 100 FEET WON'T LET THEM EVEN SPIN IN PLACE SOME HOOSIERS ARE CRYING FOUL TALK OF BOAT SEIZURES AND REPELLING INVADERS CAN BE HEARD ALONG BOTH SHORES OF THE RIVER INDIANA HAS BEEN A GOOD NEIGHBOR MR GORMAN SAYS BUT WHAT DO YOU DO WHEN YOUR NEIGHBOR PUTS A CASINO ON YOUR PROPERTY YOU GOT TO LET THEM KNOW UNDER THE LAWS OF YOUR STATE IT'S ILLEGAL TALK OF WAR MAY BE GREATLY EXAGGERATED HE SAYS BUT HE QUICKLY ADDS THAT ONE THING IS CLEAR VIOLATION OF KENTUCKY LAW ON KENTUCKY PROPERTY WON'T BE TOLERATED MR GORMAN DECLINES TO SPECULATE ON WHAT MIGHT HAPPEN IF AN INDIANA GAMBLING BOAT STRAYS ACROSS THE STATE LINE BUT THE WORD SEIZURE HAS APPEARED IN SOME REGIONAL NEWSPAPERS ALAN KLINEMAN THE NEWLY APPOINTED INDIANA GAMBLING COMMISSIONER SAYS HE HOPES THE PROBLEMS WILL BE WORKED OUT AMICABLY BUT HE ADDS THAT MAYBE THE INDIANA RIVERBOAT CREWS SHOULD BE LEARNING TO REPEL BOARDERS JUST IN CASE 9310190016 931019 AT 15 DAVID LANTZ IS IN THE DRIVER'S SEAT WITHOUT A LICENSE HIS HIGHOCTANE CAR REVIEWS DRAW PRAISE FROM DETROIT AND VISIT WITH FORD CHIEF BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL STAFFORD TEXAS AUTOINDUSTRY CRITIC DAVID LANTZ BELIEVES THAT JAPANESE CARS ARE OVERRATED THAT DETROIT IS ON THE COMEBACK TRAIL AND THAT NO CAR IS WORTH A QUARTER OF A MILLION BUCKS EVEN IF THE NAMEPLATE SAYS ROLLSROYCE MR LANTZ HAS MUCH MORE TO SAY EVEN THOUGH HE CAN'T DRIVE FOR THE MOMENT HE HAS TO SETTLE FOR A LEARNER'S PERMIT AT LEAST UNTIL HE TURNS 16 THE CAREER OF THE 15YEAROLD MR LANTZ HAS ALREADY HIT DIZZYING HEIGHTS ONCE A MONTH THE NINTH GRADER PUBLISHES AUTO CENTER MONTHLY A COMPENDIUM OF CAR REVIEWS AND SHARPLY WORDED EDITORIALS FROM HIS SUBURBAN HOUSTON HOME WRITTEN ON HIS HOME COMPUTER THE NEWSLETTER HAS CAUGHT DETROIT'S ATTENTION IN MARCH MR LANTZ GOT AN EXCLUSIVE 15MINUTE INTERVIEW WITH HAROLD RED POLING CHAIRMAN OF FORD MOTOR CO IN AUGUST CHRYSLER CORP PAID HIS WAY TO CALIFORNIA AND NEVADA SO HE COULD TESTRIDE THE COMPANY'S FULL LINE FOR 1994 ON THAT SAME TRIP THE NATIONAL EDITOR OF MOTOR TREND MAGAZINE GAVE THE TEEN HIS FIRST DRIVING LESSON HOW DID A 50CENT NEWSLETTER WITH A TOP CIRCULATION OF ABOUT 50 GET A TEENAGER THAT KIND OF ACCESS AND ATTENTION ONE WORD AUDACITY MR LANTZ HAS NEVER HAD A SHORTAGE OF IT WHEN HE WAS 11 MR LANTZ BEGAN HIS CAMPAIGN TO CONVINCE EVERYONE FROM INCREDULOUS CLASSMATES IN GRADE SCHOOL TO FORMER CHRYSLER CHAIRMAN LEE IACOCCA THAT HIS PHOTOCOPIED STAPLEBOUND NEWSLETTER WAS A SOURCE OF LEGITIMATE INSIGHTS INTO THE NATION'S AUTOMOBILE INDUSTRY MR LANTZ SENT PROMOTIONAL COPIES TO MR IACOCCA ISSUES CONTAINING OBSERVATIONS SUCH AS IF CHRYSLER DISAPPEARS FROM THIS DECADE I WON'T MISS IT AT THE AGE OF 12 HE OPINED THAT THE MERCEDESBENZ 600 SEL WAS A GREAT MODERN WAY TO WASTE YOUR LIFE SAVINGS IN ANOTHER ISSUE HE POSED THE QUESTION DOES TOYOTA BUILD A CAR THAT IS NOT 99 PLASTIC HE WRITES IMPRESSIVE LETTERS TO AUTO PUBLICISTS AND COMES CALLING WITH BUSINESS CARDS AND SUBSCRIPTION FORMS HE IS ALSO A STAUNCH DEFENDER OF DETROIT AS HE NOTES IN HIS OCTOBER ISSUE AFTER TRAVELING TO SEE THE NEW FORDS AND CHRYSLERS AS WELL AS HAVING BEEN SIMILARLY IMPRESSED WITH SOME NEW GM EFFORTS I CAN TELL YOU THAT NOBODY BUILDS A BETTER CAR OR TRUCK THAN THE FOLKS IN DETROIT BUT IT ISN'T ALL PRAISE FROM THE SAME ISSUE THOUGH I HAVE BECOME ACCUSTOMED TO WATCHING MARKETING STRATEGIES THAT ARE ABOUT AS INTELLIGENT AS AN EPISODE OF BEAVIS AND BUTTHEAD' I HAVE NEVER SEEN ONE AS BOTCHED AS THAT OF THE BUICK REGAL ALTHOUGH HIS WRITING IS UNDERSTANDABLY UNPOLISHED AT TIMES MR LANTZ'S CANDOR AND HIS UNCANNY UNDERSTANDING OF THE AUTO INDUSTRY'S PRODUCTS AND PLAYERS HAS EARNED HIM THE RESPECT OF OLDER AUTO JOURNALISTS HE'S ALMOST SCARILY FOCUSED FOR A BOY HIS AGE SAYS DANIEL CHARLES ROSS THE NATIONAL EDITOR OF MOTOR TREND WHO INSTRUCTED MR LANTZ'S MAIDEN DRIVE IN A CHRYSLER NEW YORKER LHS SEDAN MR LANTZ'S FASCINATION WITH AUTOMOBILES BEGAN AS SOON AS HE COULD PLAY WITH TOY CARS TODAY HIS BEDROOM IS AN AUTOMOTIVE LIBRARY SHELVES HOLD MORE THAN 1500 PIECES OF AUTOMOTIVE LITERATURE EACH FILED ALPHABETICALLY BY AUTO MAKER AND MODEL CAR MODELS SIT ON HIS SHELVES HIS BOOKCASE HIS BED PLEASE DO NOT TOUCH READS A SIGN IN HIS BEDROOM AUTOMOTIVE MEMORABILIA AND TECHNOLOGICAL INFORMATION ARCHIVE PERHAPS BECAUSE HIS FATHER WAS AN ENTREPRENEUR WHO WORKED OUT OF HIS HOME OR BECAUSE HIS GRANDMOTHER OFTEN WOULD ENCOURAGE HIM TO READ BUSINESS PUBLICATIONS WHEN HE WAS YOUNGER MR LANTZ HAS NEVER VIEWED HIS INTEREST IN AUTOMOBILES OR AUTO CENTER MONTHLY AS CHILD'S PLAY I REALLY NEEDED TO PROVE TO THESE GUYS IN DETROIT THAT I HAD A PUBLICATION PEOPLE READ AND BOUGHT HE SAYS SO WHILE HIS FRIENDS HEADED FOR SANDLOTS AFTER SCHOOL MR LANTZ SPENT HIS AFTERNOONS AT HOME CALLING DETROIT WRITING LETTERS TO TOP COMPANY SPOKESMEN DEMANDING THAT AUTO CENTER MONTHLY BE INCLUDED ON MAILING LISTS NEVER MIND THAT MOST OF HIS 30 OR SO READERS WERE SCHOOL BUDDIES AUTO CENTER MONTHLY WOULD NOT BE KEPT OUT OF THE INDUSTRY'S LOOP UNTIL HE DIED IN MARCH FROM HEART DISEASE MR LANTZ'S FATHER JOHN OFTEN TOOK HIS SON TO AUTO DEALERSHIPS TEST DRIVING THE VEHICLES HIS SON WOULD CRITIQUE FROM THE PASSENGER SEAT TODAY MR LANTZ MOSTLY COUNTS ON KINDLY CAR SALESMEN OR THE OCCASIONAL UNLOCKED DOOR ON A SHOWROOM MODEL FOR ACCESS TO THE INDUSTRY'S LATEST PRODUCTS STEVEN HARRIS CHRYSLER'S DIRECTOR OF PUBLIC RELATIONS SAYS HE WAS OFTEN SURPRISED BY MR LANTZ'S NERVE RECALLING THE TEENAGER'S FIRST NOTE ON AUTO CENTER MONTHLY LETTERHEAD MR HARRIS SAYS MY GOD I THOUGHT I WAS READING A LETTER FROM AN ADULT THEN HE GOT TO THE PART THAT MENTIONED IN PASSING THAT THE WRITER WAS 14 MR LANTZ'S SCHOOL PALS WEREN'T AS IMPRESSED FRIENDS REPORT THAT MR LANTZ WHO ONCE WROTE A PIECE OF GRADESCHOOL FICTION ABOUT A MONSTER THAT TERRORIZED GALVESTON TEXAS OFTEN CAME ACROSS AS A FLAKE WHEN HE PASSED AROUND AUTO CENTER MONTHLY BUSINESS CARDS AT LUNCHTIME PEOPLE JUST THOUGHT HE HAD A GREAT IMAGINATION RECALLS MIKE ZIMMERMAN 14 WHO MR LANTZ HAS SINCE HIRED TO WRITE TRUCK REVIEWS FOR AUTO CENTER MONTHLY AT 20 A PIECE I DIDN'T BELIEVE HIM AT ALL NOBODY DID BUT THEN CAME A PROFILE IN CHRYSLER'S CORPORATE NEWSLETTER AND ANOTHER IN A HOUSTON PAPER THAT HAD HEARD ABOUT HIM FROM A FORD SPOKESMAN AND THERE WAS THE AUTO CENTER MONTHLY ISSUE THAT HAD A PICTURE OF MR LANTZ SHAKING HANDS WITH MR POLING AFTER FLYING FOR FREE TO THE AUTO CHIEF'S HEADQUARTERS IN DEARBORN MICH AT HOME CAR DEALERS HAVE GOTTEN TO KNOW MR LANTZ BY NAME OH YEAH HE SAT IN ONE OF OUR CARS THE OTHER DAY SAYS KEVIN HOLLY A SALES MANAGER AT THE FORD DEALERSHIP MR LANTZ FREQUENTS IN STAFFORD SOONER OR LATER I KNOW HE'S GOING TO BUY A CAR FROM ME AS MR LANTZ CONTINUES TO PLUG HIS PUBLICATION HE MANAGES TO IMPRESS CAR ENTHUSIASTS LIKE HIMSELF PEOPLE WHO DISPLAYED AN EARLY PASSION FOR THE INDUSTRY AT A YOUNG AGE WHEN I WAS 15 YEARS OLD I WROTE TO CADILLAC AND ASKED IF I COULD BE A CADILLAC DEALER CONFESSES CHRISTOPHER CEDERGREN SENIOR VICE PRESIDENT OF AUTOPACIFIC GROUP INC AN AUTOMARKET CONSULTING GROUP IN SANTA ANA CALIF SO THIS IS KIND OF UNCANNY CARINDUSTRY JOURNALISTS AND AUTO EXECUTIVES ALIKE CAN'T HELP BUT SEE A GREATER ROLE FOR MR LANTZ WITHIN THE INDUSTRY IN THE FUTURE MR LANTZ HIMSELF PRAGMATICALLY HAS ALREADY CONCLUDED AT HE WOULD PREFER TO EARN MUCH MORE THAN THE TYPICAL JOURNALIST MAKES MR CEDERGREN SEES THE TEENAGER STRIVING FOR MUCH MORE WITH THIS KIND OF PASSION HE WILL END UP BEING ONE OF THREE THINGS HE SAYS A CAR DEALER AN AUTOMOTIVE ANALYST OR SOMEONE RUNNING A CAR COMPANY OR DAMN CLOSE 9310190015 931019 NEXTEL TO BUY DISPATCH UNITS OF 2 CONCERNS FIRM STRENGTHENING HAND IN WIRELESS ALSO PLANS TO TAKE STAKE IN RIVAL BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL RUTHERFORD NJ NEXTEL COMMUNICATIONS INC SAID IT WILL ACQUIRE RADIO DISPATCH UNITS OF TWO COMPANIES AND BUY AN EQUITY INTEREST IN ANOTHER IN MOVES VALUED AT ABOUT 780 MILLION THAT SIGNIFICANTLY FORTIFY NEXTEL'S HAND AS A WIRELESS COMMUNICATIONS PLAYER NEXTEL FORMERLY FLEET CALL INC PROVIDES RADIO DISPATCH SERVICES FOR PLUMBERS TRUCKERS AND TAXICABS IT IS BUILDING A DIGITAL NETWORK THAT WILL ENABLE IT TO PROVIDE WIRELESS SERVICE ON HANDSETS AND COMPETE WITH ENTRENCHED CELLULAR TELEPHONE COMPANIES NEXTEL SAID IT HAS A BINDING AGREEMENT TO ACQUIRE QUESTAR TELECOM INC A UNIT OF QUESTAR CORP AND A UNIT OF ADVANCED MOBILECOMM INC IN TRANSACTIONS VALUED AT ABOUT 290 MILLION FOR NEXTEL WHICH RECENTLY ACTIVATED ITS FIRST DIGITAL NETWORK FOR SOCALLED SPECIALIZED MOBILE RADIO SERVICES IN LOS ANGELES THE ACQUISITIONS EXPAND ITS PENETRATION IN THE LUCRATIVE SOUTHWEST MARKET TO INCLUDE SAN DIEGO AND LAS VEGAS ALSO NEXTEL SAID IT WILL RECEIVE 11 MILLION SHARES OF ANOTHER PROVIDER OF RADIO DISPATCH SERVICES CENCALL COMMUNICATIONS INC IN EXCHANGE FOR NEXTEL'S LICENSES IN SEVERAL STATES INCLUDING WASHINGTON OREGON COLORADO ARIZONA AND MINNESOTA CENCALL BASED IN DENVER IS A SPECIALIZED MOBILE RADIO OPERATOR WITH PROPERTIES IN DENVER SEATTLE AND PORTLAND ORE AND STATES INCLUDING OKLAHOMA AND KANSAS IT'S CLEARLY AN AGGRESSIVE STRATEGY FOR NEXTEL SAID SUSAN PASSONI ANALYST AT COWEN & CO SHE NOTED THAT THE COMPANY'S PUSH TO WIDEN GEOGRAPHIC COVERAGE BY BUYING UP LICENSES IN SEVERAL STATES MIRRORS A STRATEGY USED BY MCCAW CELLULAR COMMUNICATIONS CO WHICH IS BEING ACQUIRED BY AMERICAN TELEPHONE & TELEGRAPH CO LIKE MCCAW NEXTEL IS FIRST CONCENTRATING IN GETTING A FOOTHOLD IN THE HEAVILY POPULATED AND POTENTIALLY PROFITABLE COASTAL AREAS MS PASSONI SAID NEXTEL'S SHARES CLOSED AT 5025 IN NATIONAL OVERTHECOUNTER TRADING UP 375 CENTS WITH 24 MILLION SHARES TRADED CENCALL'S SHARES SHOT UP 775 OR 21 TO 4450 IN OVERTHECOUNTER TRADING BASED ON CENCALL'S CLOSING PRICE NEXTEL'S TRANSACTION WITH THE COMPANY IS VALUED AT ABOUT 490 MILLION AS A RESULT OF THE EXCHANGE NEXTEL WILL HOLD ABOUT 37 OF CENCALL ON A FULLY DILUTED BASIS WITH THE LATEST DEALS NEXTEL WILL BOOST TO 134 MILLION FROM 108 MILLION THE NUMBER OF POTENTIAL CUSTOMERS TO WHOM IT CAN PROVIDE WIRELESS SERVICES MORE SIGNIFICANTLY PERHAPS IT SIGNALS THE RAPID CONSOLIDATION THE DISPATCH INDUSTRY IS UNDERGOING AND THE SPEED WITH WHICH IT IS MOVING TOWARD A NATIONWIDE NETWORK DISPATCH OPERATORS THAT HOPE TO PROVIDE WIRELESS SERVICES FACE INTENSE COMPETITION FROM ESTABLISHED CELLULAR COMPANIES THIS ACCELERATES THE PACE WITH WHICH WE CAN BUILD OUR DIGITAL NETWORK AND GUARANTEES THAT BETWEEN CENCALL AND US SUCH A NETWORK WILL BE BUILT ON THE WEST COAST A NEXTEL SPOKESMAN SAID WE'RE LEAVING NO STONE UNTURNED NEXTEL AND SIMILAR COMPANIES HOWEVER STILL HAVE TO RAISE BILLIONS TO BUILD EXPENSIVE TRANSMISSION TOWERS TO CONNECT THE COUNTRY THEY ALSO FACE FORMIDABLE MARKETING COSTS TO CONVINCE CUSTOMERS TO BUY THEIR PRODUCTS AND SERVICES CENCALL AND NEXTEL HAVE ALSO AGREED IN PRINCIPLE TO SET UP A ROAMING RELATIONSHIP IN SEVERAL MARKETS INCLUDING MIDWESTERN AND MOUNTAIN STATES IN CONNECTION WITH THE ROAMING ARRANGEMENT WHICH ALLOWS A USER TO CARRY A HANDSET IN SEVERAL SERVICE AREAS NEXTEL SAID IT WILL ACQUIRE FOR A 10 MILLION NOTE A 39MONTH OPTION ON FOUR MILLION ADDITIONAL CENCALL SHARES AT AN EXERCISE PRICE OF 64 A SHARE DEFINITIVE AGREEMENTS ARE STILL REQUIRED FOR ITS ACQUISITIONS OF QUESTAR TELECOM AND THE ADVANCED MOBILECOMM UNIT NEXTEL WILL ISSUE A TOTAL OF 58 MILLION SHARES TO SHAREHOLDERS OF THE ACQUIRED UNITS AND WILL BECOME THE SOLE HOLDER OF BOTH UNITS QUESTAR WILL RECEIVE 67 OF THE NEXTEL SHARES AND ADVANCED MOBILECOMM WILL RECEIVE THE BALANCE NEXTEL SAID THE ACQUISITIONS WHICH NEED TO BE CLEARED BY THE FEDERAL COMMUNICATIONS COMMISSION ARE EXPECTED TO CLOSE IN THE FIRST QUARTER OF 1994 QUESTAR IS A NATURAL GAS COMPANY BASED IN SALT LAKE CITY ADVANCED MOBILECOMM IS A UNIT OF BOSTONBASED FIDELITY INVESTMENTS 9310190014 931019 BUSINESS BRIEF HEALTH MANAGEMENT ASSOCIATES COMPANY SAYS QUARTERLY NET LEAPED 45 REVENUE 16 HEALTH MANAGEMENT ASSOCIATES AIDED BY INCREASES IN ADMISSIONS AND SURGERIES EXPECTS TO REPORT THAT FISCAL FOURTHQUARTER EARNINGS JUMPED MORE THAN 45 TO MORE THAN 7 MILLION FROM 5 MILLION A YEAR EARLIER WILLIAM J SCHOEN CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE NAPLES FLA COMPANY WHICH OPERATES 20 ACUTECARE AND PSYCHIATRIC HOSPITALS MAINLY IN THE SOUTH AND SOUTHWEST WILL REPORT PERSHARE EARNINGS OF BETWEEN 34 CENTS AND 37 CENTS FOR THE QUARTER ENDED SEPT 30 MR SCHOEN SAID IN AN INTERVIEW COMPARED WITH 24 CENTS A YEAR EARLIER REVENUE INCREASED ABOUT 16 TO 80 MILLION FROM 69 MILLION HE ADDED MR SCHOEN SAID SAMEHOSPITAL ADMISSIONS ROSE ABOUT 1 IN THE QUARTER SAMEHOSPITAL SURGERIES ROSE ABOUT 2 WHILE SAMEHOSPITAL EMERGENCY ROOM VISITS ROSE ABOUT 6 HE SAID THE COMPANY'S SHARES CLOSED YESTERDAY AT 39125 OFF 625 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9310190013 931019 HEARD ON THE STREET SMITH BARNEY SHEARSON STICKS OUT ITS NECK WITH AD CAMPAIGN URGING INVESTORS TO BUY BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN THE STOCK MARKET CRASHED SIX YEARS AGO TODAY ON THE INFAMOUS OCT 19 1987 MANY INVESTORS DIDN'T KNOW WHOM TO BLAME BUT IF THE CURRENT BULL MARKET COLLAPSES THERE IS AN OBVIOUS PLACE TO SEND YOUR HATE MAIL THE NEWLY MERGED SMITH BARNEY SHEARSON AT A TIME WHEN MANY INVESTORS AND BROKERS HAVE TURNED CAUTIOUS SMITH BARNEY SHEARSON IS DOING JUST THE OPPOSITE IT IS IN THE MIDDLE OF A TWOWEEK 2 MILLION ADVERTISING CAMPAIGN DESIGNED TO GET INVESTORS TO BUY BUY BUY THE CAMPAIGN IS THE PRIMERICA UNIT'S FIRST BIG PUBLIC STATEMENT ON INVESTING SINCE THE MERGER IN AUGUST OF SMITH BARNEY AND SHEARSON THE STOCK MARKET IS NEAR RECORD LEVELS MANY ANALYSTS SAY SELL' WE SAY BUY' URGES THE BROKERAGE FIRM'S ADS WHY STICK OUT ITS NECK SMITH BARNEY SHEARSON FIGURES THAT INTEREST RATES ARE GOING STILL LOWER AND THAT CERTAIN STOCKS HAVE ROOM TO RISE WHILE IT CONCEDES THE MARKET IS HIGHLY VALUED IT SAYS THIS MARKET ISN'T LIKE THE ONE THAT NOSEDIVED SIX YEARS AGO THERE'S NO SIMILARITY WITH 1987 EXCEPT IT BEING OCTOBER INSISTS JACK RIVKIN THE BROKERAGE FIRM'S RESEARCH DIRECTOR WHO HAD THE SAME JOB AT SHEARSON DURING 1987 FOR MR RIVKIN THE AFTERMATH OF THE CRASH REINFORCED THE LESSON OF KEEPING YOUR HEAD OF PAYING ATTENTION TO THE NUMBERS AND NOT BEING TRAPPED BY THE CONVENTIONAL WISDOM ALREADY SMITH BARNEY SHEARSON HAS HAD TO DOWNGRADE ONE OF THE 44 STOCKS THAT IT RECOMMENDS IN ITS BULLISH WHERE WE STAND REPORT WHICH WAS ISSUED IN CONNECTION WITH THE AD CAMPAIGN THAT STOCK IS RESTAURANT CHAIN BUFFETS TRADING AT A RELATIVELY HIGH 40 TIMES REPORTED EARNINGS WHICH THE BROKERAGE FIRM DOWNGRADED ONE NOTCH LAST WEEK TO OUTPERFORM FROM BUY MR RIVKIN SAYS THE DOWNGRADE WAS MADE PURELY BECAUSE THE STOCK HAD A QUICK MOVE UPWARD JUST AS THE REPORT WAS PUBLISHED WE STILL THINK IT'S GOING TO DO WELL HE SAYS MR RIVKIN SAYS THE MAIN POINT IS THAT THE STOCK MARKET ALWAYS SEEKS GROWTH AND THERE IS STILL A LOT OF THAT IN VARIOUS SECTORS OF THE MARKET FROM OVERSEAS COMPANIES TO SMALL STOCKS WITH INTEREST RATES SO LOW THESE STOCKS WILL GO UP HE ARGUES HE SAYS HIS THREE FAVORITES FROM THE LIST ARE GENERAL ELECTRIC MCDONALD'S AND UNITED HEALTHCARE OKAY MR RIVKIN BUT ISN'T ALL OF THIS STILL RISKY STUFF TO BE DOING IN A FROTHY STOCK MARKET EVEN MANY SMITH BARNEY SHEARSON BROKERS ARE NERVOUS ABOUT THE PUBLICLY BULLISH STANCE THEIR FIRM IS TAKING IN THE TV ADS RUNNING DURING THE WORLD SERIES PRO FOOTBALL GAMES AND NETWORK NEWS SHOWS I THINK EVERYBODY ALWAYS GETS A LITTLE NERVOUS SAYING GOSH DO WE HAVE TO SAY THIS OUT LOUD' CONCEDES MR RIVKIN BUT THE WAY THE FIRM FIGURES IT IF WE WERE WILLING TO BE BULLISH IN SMALL PRINT WE OUGHT TO BE PREPARED TO SAY IT IN LARGE PRINT IT WAS THE RIGHT TIME HE SAYS THE STOCKS RECOMMENDED BY SMITH BARNEY SHEARSON RANGE FROM THE RELATIVELY LOWRISK SUCH AS AMERICAN INTERNATIONAL GROUP DRESSER INDUSTRIES EMERSON ELECTRIC GENERAL ELECTRIC MAY DEPARTMENT STORES AND MCDONALD'S TO THE ESOTERIC LIKE TELEFONICA DE ARGENTINA AND MEXICAN STOCKS BANACCI AND BANCOMER THE FIRM SAYS THE MARKET'S LEADERSHIP IS ROLLING OVER FROM 1980S GROWTH STOCKS FOOD TOBACCO AND PHARMACEUTICALS TO WHAT MR RIVKIN CALLS THE MORE CLASSIC AMERICAN MIDDLEOFTHECOUNTRY COMPANIES THE CAPITALGOODS COMPANIES LIKE CATERPILLAR AND YORK INTERNATIONAL FOR HIGH GROWTH THE FIRM RECOMMENDS INTEL OR ORACLE HEALTHCARE REFORM MR RIVKIN SAYS UNITED HEALTHCARE IS THE ONE COMPANY ACTUALLY CONTROLLING THE COST OF HEALTH CARE AS OPPOSED TO BEING CONTROLLED BY IT THE FIRM ALSO RECOMMENDS COVENTRY FHP INTERNATIONAL AND HEALTH MANAGEMENT ASSOCIATES THERE ARE THE OBLIGATORY NAFTARELATED PICKS SUCH AS THE MEXICAN STOCKS PLUS SEVERAL SMALL STOCKS WITH EARNINGS MOMENTUM INCLUDING THE AFOREMENTIONED BUFFETS SMITH BARNEY SHEARSON IS WARM TO COMPANIES IT SAYS CAN COMPETE INTERNATIONALLY THAT'S WHY CHRYSLER GENERAL MOTORS AND MCDONALD'S ARE ON THE LIST THIS NEWSPAPER SENT SMITH BARNEY SHEARSON'S LIST TO VALUE INVESTOR SCOTT BLACK OF DELPHI MANAGEMENT IN BOSTON HIS OPINION A LOT OF THEM ARE GOOD COMPANIES BUT CERTAINLY AREN'T GOOD INVESTMENTS HE AGREES BURLINGTON RESOURCES AMERICAN INTERNATIONAL AND MAY DEPARTMENT STORES ARE GOOD IDEAS WHICH HIS FIRM HAS BOUGHT ITSELF BUT MR BLACK RECKONS OTHERS LIKE ALTERA BUFFETS CISCO SYSTEMS COVENTRY INFORMIX NEWBRIDGE NETWORKS ORACLE TRICORD SYSTEMS UNITED HEALTHCARE AND VIEWLOGIC SYSTEMS ARE GROSSLY OVERPRICED EVEN CATERPILLAR IS WAY AHEAD OF ITSELF SAYS MR BLACK MERRILL LYNCH THE ONLY US BROKERAGE FIRM BIGGER THAN SMITH BARNEY SHEARSON DECLINED TO COMMENT YESTERDAY ABOUT ITS COMPETITOR'S BOLD MARKET PRONOUNCEMENT WE'LL PASS SAID A SPOKESWOMAN 9310190012 931019 CANAM MANAC PLANT IN CHINA MONTREAL CANAM MANAC GROUP INC SAID IT AGREED TO BUILD A METALCONSTRUCTIONPARTS PLANT IN A BEIJING SUBURB THE COMPANY SAID IT WILL CONTROL 60 OF CANAM STEEL STRUCTURE BEIJING LTD THROUGH A SUBSIDIARY THE MINORITY SHAREHOLDER WILL BE BEIJING NEW BUILDING MATERIALS HOUSING CORP IT SAID CONSTRUCTION WORK ON THE 10000SQUAREMETER PLANT WILL BEGIN IN THE NEXT FEW WEEKS AND OPERATIONS ARE EXPECTED TO BEGIN DURING THE FIRST HALF OF 1994 9310190011 931019 BUSINESS BRIEF PRIMERICA'S EARNINGS ROSE 57 FOR QUARTER TRAVELERS POSTED LOSS A WALL STREET JOURNAL NEWS ROUNDUP PRIMERICA CORP REPORTED A 57 SURGE IN THIRDQUARTER EARNINGS WHILE ITS TRAVELERS CORP INSURANCE AFFILIATE REPORTED A NET LOSS OF 355 MILLION TRAVELERS SAID LAST WEEK IT EXPECTED A QUARTERLY LOSS CITING A 211 MILLION CHARGE FOR RESERVES FOR ASBESTOS AND POLLUTION CLAIMS PRIMERICA PARENT OF SMITH BARNEY SHEARSON OWNS 27 OF THE HARTFORD CONN INSURER AND HAS AGREED TO BUY THE REST FOR ABOUT 4 BILLION THE NEW YORKBASED FINANCIALSERVICES COMPANY'S SOARING EARNINGS ARE IN KEEPING WITH THE HIGHERTHANEXPECTED RESULTS REPORTED BY OTHER BROKERAGE FIRMS FOR THE THIRD QUARTER THE GROWTH ALSO REFLECTS THE ADDITION OF SHEARSON'S EARNINGS PRIMERICA ACQUIRED SHEARSON FROM AMERICAN EXPRESS CO IN JULY PRIMERICA EARNED 2587 MILLION OR 103 A SHARE COMPARED WITH A YEAREARLIER 1651 MILLION OR 73 CENTS A SHARE OPERATING PROFIT WHICH EXCLUDES ONETIME CHARGES AND CAPITAL GAINS ROSE TO 2422 MILLION FROM 1368 MILLION EARNINGS AT SMITH BARNEY SHEARSON WERE SHARPLY HIGHER AND GROWTH IN THE COMPANY'S CONSUMERFINANCE OPERATION WAS ALSO STRONG OPERATING PROFIT AT THE COMPANY'S LIFEINSURANCE OPERATION PRIMERICA FINANCIAL SERVICES FELL SLIGHTLY TRAVELERS' LOSS OF 355 MILLION OR 33 CENTS A SHARE COMPARES WITH A YEAREARLIER LOSS OF 3583 MILLION OR 354 A SHARE YEAREARLIER FIGURES INCLUDE THE EFFECTS OF HURRICANE ANDREW AND OF A RESTRUCTURING CHARGE PRIMERICA'S ACQUISITION OF THE 73 OF TRAVELERS IT DOESN'T CURRENTLY OWN IS EXPECTED TO OCCUR BY YEAR'S END IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE PRIMERICA CLOSED AT 4650 A SHARE DOWN 50 CENTS TRAVELERS CLOSED AT 37 DOWN 50 CENTS 9310190010 931019 JOBTRAINING MEASURE POSTPONED AT REQUEST OF TOP LAWMAKERS WASHINGTON THE CLINTON ADMINISTRATION POSTPONED UNTIL NEXT YEAR ITS EFFORT TO OVERHAUL FEDERAL JOB TRAINING PROGRAMS PRESIDENT CLINTON SAID THE PROGRAM WHICH WAS TO BE UNVEILED THIS MONTH WILL BE DELAYED BECAUSE OF A HEAVY LEGISLATIVE CALENDAR FEATURING FIGHTS ON SUCH ISSUES AS THE NORTH AMERICAN FREE TRADE AGREEMENT THE CRIME BILL AND REINVENTING GOVERNMENT LABOR DEPARTMENT OFFICIALS SAID THE DELAY COMES AT THE REQUEST OF KEY LAWMAKERS WHO WERE WORRIED ABOUT THE OVERBURDENED SCHEDULE DESPITE THE DELAY THE OFFICIALS SAY THE SCHEDULE FOR THE BILL WON'T SLIP MUCH THEY SAID LAST WEEK'S BATTLE AMONG HOUSE DEMOCRATS OVER EXTENDING FEDERAL EMERGENCY UNEMPLOYMENT BENEFITS CONVINCED SOME LAWMAKERS OF THE NEED TO OVERHAUL THE ENTIRE SYSTEM THE SOCALLED REEMPLOYMENT PROGRAM DESIGNED TO CREATE A SINGLE FEDERAL SYSTEM FOR HEKERS CUT FROM THEIR JOBS WOULD MELD UNEMPLOYMENT AID WITH COUNSELING CAREER PLANNING AND TRAINING FOR THE ESTIMATED 22 MILLION WORKERS PUT OUT OF WORK EACH YEAR ADMINISTRATION AIDES SAY THE PROGRAM NOW IS LIKELY TO BE INTRODUCED IN JANUARY THAT COULD PUT THE LEGISLATION BEFORE CONGRESS IN THE MIDDLE OF THE HEALTHCARE DEBATE 9310190009 931001 REVIEW & OUTLOOK EDITORIAL ASIA RHETORIC GAP DURING HIS RECENT EXCURSION TO ASIA PRESIDENT CLINTON SPOKE OF AMERICA WANTING TO JOIN A NEW PACIFIC COMMUNITY THAT SOUNDS FINE TO US BUT SHOULDN'T THE US COME UP WITH A POLICY TO MATCH THE VISION CONSIDER THE EXAMPLE OF INDONESIA PERHAPS FAR OFF BUT STILL THE WORLD'S FIFTHLARGEST NATION IN DEALING WITH THE US BUREAUCRACY THE INDONESIANS MUST FEEL LIKE THEY'RE BEING NIBBLED TO DEATH BY DUCKS LAST MONTH FOR EXAMPLE WASHINGTON BLOCKED THE SALE OF SOME AGING JORDANIAN F5 JETS TO THE INDONESIAN AIR FORCE THE STATE DEPARTMENT HARRUMPHED IMPORTANTLY ABOUT HUMAN RIGHTS ON THE ISLAND OF EAST TIMOR EAST TIMOR ALSO CAME UP AS THE SENATE FOREIGN RELATIONS COMMITTEE MUCKED AROUND WITH THE ANNUAL FOREIGN AID BILL WITH NOVICE RUSS FEINGOLD ATTACHING AN AMENDMENT LINKING FUTURE ARMS SALES TO CONDITIONS ON THE ISLAND THE ISSUE ALSO OBSESSES COMMITTEE CHAIRMAN CLAIBORNE PELL WHO WAS DENIED PERMISSION TO VISIT THE ISLAND DURING A JUNKET THROUGH THE REGION LAST YEAR IT'S AN EASY HUMAN RIGHTS STANCE EXPLAINS A COMMITTEE AIDE THE LATEST TO GET INTO THE ACT IS THE WHITE HOUSE'S OFFICE OF THE US TRADE REPRESENTATIVE AS IF IT DIDN'T HAVE ENOUGH TO DO WITH GATT AND NAFTA BOTH HANGING BY A THREAD A DELEGATION FLEW OVER AND SHOOK A FINGER IN JAKARTA'S FACE ABOUT SOME IMPOSSIBLY MINUSCULE ISSUE OF TRADE UNION POLICY THESE IMPORTANT FUNCTIONARIES HAVE RETURNED TO THE STATES AND ARE NOW DELIBERATING ON WHETHER TO IMPOSE PUNITIVE TARIFFS ON INDONESIA IMPORTS TAKEN ALONE NONE OF THESE DECISIONS IS STRIKING TAKEN TOGETHER IT'S NO WONDER THAT A HEADLINE IN THE INDONESIA BUSINESS WEEKLY READS US AGAIN ATTACKS INDONESIA NOW THE US CERTAINLY DOES CARE IF INDONESIAN TROOPS ARE TRIGGERHAPPY AS THEY QUELL THE RESTIVE INHABITANTS OF EAST TIMOR THOUGH WE DON'T EXACTLY HAVE A SOLUTION FOR ANY OF THE CASUALTIES OF THE PRECIPITOUS COLLAPSE OF PORTUGUESE COLONIALISM IF NOTHING ELSE WERE AT STAKE WE SUPPOSE IT WOULD BE NICE FOR THE US GOVERNMENT TO PRESCRIBE HOW THE INDONESIANS SHOULD TREAT LABOR UNIONS TOO CERTAINLY THEIR PRACTICES COULD STAND IMPROVEMENT STILL NONE OF THESE SLAPS ON THE WRIST IS STRONG ENOUGH TO CHANGE THE BEHAVIOR THE US FINDS TROUBLING SANCTIONS WILL ONLY SEND THE INDONESIANS TO BUY THEIR MILITARY EQUIPMENT IN RUSSIA BRAZIL OR THE EUROPEAN COMMUNITY INDEED REFURBISHING THE JORDANIAN F5S WOULD HAVE MEANT JOBS FOR THE STRUGGLING CALIFORNIA ECONOMY AS FOR THE LABOR ISSUE WILL THE GOVERNMENT CHANGE ITS BEHAVIOR OVER THE THREAT AT ISSUE THE LOSS OF TARIFF PREFERENCES ON ABOUT 15 OF EXPORTS TO THE US WHICH ACCOUNT FOR LESS THAN 18 OF EXPORTS OVERALL MORE IMPORTANT CAN THESE ISSUES REALLY BE THE SUM TOTAL OF OUR INTEREST IN INDONESIA IT IS ONE THING TO RAISE SUCH CONCERNS WITH INDONESIA BUT QUITE ANOTHER TO LET THEM DOMINATE THE DIALOGUE ALL THIS CAN DO IS POISON RELATIONS FOR NO SUBSTANTIVE GAIN THE INDONESIAN GOVERNMENT CAN BE EXPECTED TO TRUMPET TO GOOD EFFECT ITS TOUGHMINDED RESISTANCE TO YANKEE PRESSURE THE INDONESIANS DO SEEM TO HAVE A BETTER GRIP ON THE FACT THAT SOME STRATEGY IS CALLED FOR AFTER THE US NAVY SAILED OUT OF SUBIC BAY PRESIDENT SUHARTO STEPPED UP AND OFFERED REPAIR FACILITIES FOR US WARSHIPS HE'S ALSO COMING TO ATTEND THE ASIAPACIFIC ECONOMIC COOPERATION GROUP MEETING NEXT MONTH IN SEATTLE AT PRESIDENT CLINTON'S INVITATION UNLIKE OTHER ASIAN GOVERNMENTS INDONESIA HAS BEEN ENTHUSIASTIC ABOUT WASHIGNTON'S PARTICIPATION IN REGIONAL CONFABS NONE OF THESE OTHER IMPORTANT INTERESTS ARE SERVED BY RECENT POLICY WE DON'T SEE ANYONE ASKING THE SIMPLE QUESTIONS WHAT ARE US INTERESTS IN INDONESIA ARE AMERICAN ACTIONS SERVING THOSE INTERESTS HOW ARE US ACTIONS PLAYING OUT IN ASIA AND FINALLY DOES ANYONE IN WASHINGTON CARE SEE RELATED LETTER LETTERS TO THE EDITOR HUMAN RIGHTS ABUSE TOP CLINTON TARGET WSJ OCT 19 1993 9310010006 YY93 MM10 9310190008 931019 BECKMAN TO CUT JOBS REORGANIZE IT POSTS FLAT 3RDQUARTER NET FULLERTON CALIF BECKMAN INSTRUMENTS INC SAID IT WILL CUT 11 OF ITS WORK FORCE CONSOLIDATE ITS LIFE SCIENCES LABORATORY AND DIAGNOSTIC LABORATORY BUSINESSES AND TAKE OTHER STEPS TO REORGANIZE AND CUT COSTS IT ALSO REPORTED THAT EARNINGS FOR THE THIRD QUARTER WERE FLAT THE COMPANY SAID THE REORGANIZATION WILL FOCUS ITS OPERATIONS ON PRODUCTS DESIGNED FOR USE IN THE FIELDS OF MOLECULAR BIOLOGY AND RELATED SCIENCES WHICH ARE EXPECTED TO GENERATE NEW TECHNOLOGIES THAT WILL EMERGE FOR CLINICAL USE THE COMPANY WILL SHIFT ITS EMPHASIS AWAY FROM TRADITIONAL ANALYTICAL INSTRUMENTATION WHICH IS A MORE MATURE MARKET A SPOKESMAN SAID BECKMAN SAID THE CHANGES WOULD RESULT IN A SIGNIFICANT ONETIME CHARGE AGAINST FOURTHQUARTER EARNINGS BUT DIDN'T SPECIFY HOW LARGE THE CHARGE MIGHT BE FOR THE QUARTER BECKMAN'S STOCK DROPPED 50 CENTS TO 2625 A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING LOUIS ROSSO CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID JOHN P WAREHAM 52 YEARS OLD WILL SUCCEED HIM AS PRESIDENT AND ASSUME THE NEWLY CREATED POSITION OF CHIEF OPERATING OFFICER MR ROSSO 60 WILL RETAIN HIS OTHER POSITIONS MICHAEL T O'NEILL 53 WAS NAMED SENIOR VICE PRESIDENT OF COMMERCIAL OPERATIONS AND DENNIS K WILSON 58 WAS NAMED VICE PRESIDENTFINANCE AND CHIEF FINANCIAL OFFICER TO SUCCEED GEORGE KILMAIN 60 WHO IS RETIRING ABOUT 750 JOBS WILL BE ELIMINATED OVER THE NEXT SEVERAL MONTHS WHICH WILL AFFECT MANAGEMENT AS WELL AS PARTTIME AND CONTRACT WORKERS BECKMAN HAS TAKEN SEVERAL STEPS TO REORGANIZE AND IMPROVE ITS OPERATING BUSINESSES PARTICULARLY IN THE WAKE OF A MOVE BY A GROUP OF INVESTORS LED BY THE BASS FAMILY TO OPEN UP BECKMAN'S CORPORATE GOVERNANCE AND ADD OUTSIDE BOARD MEMBERS SPOKESMEN FOR THE GROUP DIDN'T RETURN CALLS SEEKING COMMENT BECKMAN REPORTED EARNINGS OF 115 MILLION OR 42 CENTS A SHARE VERSUS 114 MILLION OR 40 CENTS A SHARE A YEAR EARLIER SALES WERE 2156 MILLION DOWN SLIGHTLY FROM 2205 MILLION A YEAR AGO 9310190007 931019 EXCEPTIONAL ENTERPRISES PURCHASE NEW YORK EXCEPTIONAL ENTERPRISES INC ACQUIRED SUBSTANTIALLY ALL OF THE ASSETS OF WALHILL PARTNERS LTD A DALLASBASED BARRESTAURANT COMPLEX OPERATOR FOR 445 MILLION OF EXCEPTIONAL ENTERPRISES COMMON SHARES A SPOKESMAN FOR EXCEPTIONAL ENTERPRISES SAID THE NEW YORKBASED COMPANY HAD NO BUSINESS INTERESTS BEFORE THE ACQUISITION OF WALHILL AND WILL NOW OPERATE THE DALLAS RESTAURANT 9310190006 931019 DARTS' STALL MAY PUNCTURE BRAZIL DEBT RESTRUCTURING BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL A RICH AMERICAN FAMILY HAS STALLED NEGOTIATIONS TO RESTRUCTURE THE 435 BILLION THAT BRAZIL OWES TO BANKS AROUND THE WORLD COMMERCIAL BANKS AND BRAZILIAN FINANCE OFFICIALS ARE FUMING OVER THE DEMANDS OF THE DART FAMILY WHICH OWNS DART CONTAINER CORP A SARASOTA FLA MAKER OF PLASTICFOAM CONTAINERS THE FAMILY IS HOLDING UP THE NEGOTIATIONS BECAUSE ITS MEMBERS BELIEVE THEY GOT A RAW DEAL IN A PRELIMINARY AGREEMENT AFFECTING THEIR HOLDINGS OF ABOUT 14 BILLION IN DEVALUED BRAZILIAN LOAN PAPER THE FAMILY IS PUBLICLY UPSETTING THE COZY AND DISCREET DISCUSSIONS THAT COMMERCIAL BANKERS HAVE HAD IN PAST DEBTRESTRUCTURING PROGRAMS THIS IS A POWER SHIFT DECLARES MICHAEL ADLER PROFESSOR OF INTERNATIONAL FINANCE AT THE GRADUATE SCHOOL OF BUSINESS AT COLUMBIA UNIVERSITY THERE ARE NO GENTLEMEN'S AGREEMENTS LESTED BETWEEN THE BANKS BEFORE BRAZIL'S TOP DEBT NEGOTIATORS MET YESTERDAY IN NEW YORK WITH THE BANK DEBT COMMITTEE TO DISCUSS THE SITUATION BRAZIL HOPES TO PERSUADE THE DART FAMILY TO TAKE THE SAME DEAL AS THE COMMERCIAL BANKS ACCORDING TO PEOPLE FAMILIAR WITH THE TALKS AND APPEARS NOT TO HAVE MADE ANY PLANS TO DEAL WITH THE FAMILY IF IT CONTINUES TO BALK THE TWO SIDES LAST MET 11 DAYS AGO AND THERE WEREN'T ANY PLANS FOR NEW MEETINGS AS OF LATE YESTERDAY THE STAKES AS DR ADLER NOTES ARE NOT PEANUTS IF THE DARTS SUCCEED THEY COULD REAP MANY MILLIONS IN PROFITS AS THE PRICE OF BRAZIL'S DEBT ROSE STEADILY AHEAD OF AN EXPECTED RESTRUCTURING THE FAMILY'S HOLDING HAS GAINED AS MUCH AS 280 MILLION IN VALUE ESTIMATES MICHAEL PETTIS OF THE WESTON GROUP AN INVESTING AND TRADING FIRM SPECIALIZING IN LATIN AMERICA THE AGREEMENT THAT THE DARTS ARE PUSHING FOR COULD ADD AS MUCH AS 93 MILLION OF VALUE TO THEIR HOLDINGS HE ESTIMATES THE DART FAMILY WOULDN'T COMMENT ON THESE ESTIMATES MEANWHILE THE BANKS COULD LOSE OUT ON MAKING SOME MONEY IF BRAZIL SCRAPS THE RESTRUCTURING DEAL AS SOME OFFICIALS HAVE THREATENED US COMMERCIAL BANKS ALREADY HAVE WRITTEN OFF THE BRAZILIAN DEBT TO 35 OF ITS FACE VALUE BUT STAND TO MISS OUT ON MILLIONS IN POTENTIAL PROFITS IF THE DEAL IS DUMPED A DELAY PAST BRAZIL'S CURRENT GOAL OF WRAPPING UP THE RESTRUCTURING BY THE END OF FEBRUARY COULD HAVE DISASTROUS EFFECTS ON BILLIONS OF DOLLARS OF INVESTMENTS IN BRAZILIAN DEBT PAPER AND THE REST OF THE LATIN AMERICAN DEBT MARKETS THERE ARE TWO THINGS THAT COULD SCREW UP THE MARKET FOR LATIN DEBT SAYS RUDOLFO AMORESANO MANAGING DIRECTOR OF FIXEDINCOME EMERGING MARKETS AT NOMURA SECURITIES INTERNATIONAL INC BRAZIL AND FAILURE TO PASS NAFTA THE NORTH AMERICAN FREE TRADE AGREEMENT IF BRAZIL DOESN'T RESTRUCTURE ITS DEBT HE SAID PEOPLE ARE GOING TO GET OUT OF MEXICO AND OTHER LATIN COUNTRIES IF THE BANKS AND THE DARTS COMPROMISE HOWEVER FUTURE DEBT NEGOTIATIONS IN COUNTRIES SUCH AS PERU PANAMA AND EVEN POLAND COULD BECOME MUCH MORE COMBATIVE AND COSTLY AS INDIVIDUAL INVESTORS REFUSE TO MEEKLY ACCEPT THE CONDITIONS THAT THE TOP FEW COMMERCIAL BANKS NEGOTIATE FOR THEM ACCORDING TO THE EXPERTS THERE AREN'T ANY LAWS COMPELLING OTHER DEBT HOLDERS TO AGREE TO DEALS NEGOTIATED BY COMMERCIAL BANKS ON THE VARIOUS BANK ADVISORY COMMITTEES WHAT'S MORE SOME INSTITUTIONAL INVESTORS SUCH AS MUTUAL FUNDS MAY BE FORCED TO ADOPT THE DART STRATEGY BECAUSE OF FIDUCIARY RESPONSIBILITIES TO GET THE BEST POSSIBLE DEAL FOR THEIR SHAREHOLDERS SAYS DR ADLER COMMERCIAL BANKS HAVE BEEN ABLE TO MUFFLE SUCH SCUFFLES IN PAST NEGOTIATIONS BECAUSE MOST OF THE BIG HOLDERS WERE OTHER BANKS WITH MANY OF THE SAME INTERESTS BUT THE BANKS HAVE LITTLE LEVERAGE WITH THE DART FAMILY FOR NOW NEGOTIATIONS ARE AT AN IMPASSE AND BRAZIL MUST WAIT LONGER FOR BADLY NEEDED NEW LOANS TO HELP REFORM ITS ECONOMY BRAZIL HAS THE LEGAL RIGHT TO IGNORE THE DART DEMANDS AND LEAVE THEM OUT OF THE DEBT AGREEMENT ALTOGETHER SAYS ONE LEGAL EXPERT BUT DART COULD SUE BRAZIL AND THE LAWSUIT COULD SCARE OFF OTHER INVESTORS WILLIAM R RHODES VICE CHAIRMAN OF CITICORP'S CITIBANK AND HEAD OF THE BANK DEBT COMMITTEE FOR BRAZIL WOULDN'T COMMENT ON THE MATTER THE DART FAMILY ACQUIRED THE DEVALUED BRAZILIAN DEBT PAPER DURING THE PAST TWO YEARS SAY WALL STREET TRADERS THE DART FAMILY CLAIMS TO BE BRAZIL'S FOURTH LARGEST CREDITOR EARLY LAST WEEK THE NORMALLY SECRETIVE DART FAMILY TURNED UP THE HEAT BY ISSUING A NEWS RELEASE CONTENDING THAT BRAZIL HAD REJECTED DART'S PARTICIPATION IN THE DEBT RESTRUCTURING LATER LAST WEEK BRAZIL ANNOUNCED THAT IT WAS PROCEEDING WITH THE NEGOTIATIONS BUT IMPLIED THAT IF A SOLUTION WEREN'T REACHED WITH THE DART FAMILY BRAZIL WILL NOT PROCEED WITH THE CLOSING OF THE TRANSACTIONS CONTEMPLATED BY THE FINANCING PLAN COLUMBIA UNIVERSITY'S DR ADLER LIKENS THE DART FAMILY TO VULTURE INVESTORS WHICH BUY SECURITIES OF TROUBLED COMPANIES AND USE SUCH HOLDINGS TO SQUEEZE THE COMPANIES DART IS DOING EXACTLY WHAT THE VULTURES HAVE DONE SAYS DR ADLER AS DID MANY OTHER INVESTORS THE DART FAMILY RECOGNIZED THE SUCCESS OF A USSPONSORED PROGRAM TO SIMPLIFY THE NEGOTIATIONS OF DEBTRESTRUCTURING AGREEMENTS CALLED THE BRADY PLAN AND THE GROWING INTEREST IN LATIN AMERICAN INVESTMENTS THE BRADY PROGRAM NAMED FOR FORMER US TREASURY SECRETARY NICHOLAS BRADY ALLOWED DEBTBELEAGUERED NATIONS TO CONVERT DEVALUED DEBT INTO MORE EASILY TRADED BONDS WHILE REDUCING THEIR TOTAL DEBT LOAD WITH INTEREST RATES DROPPING ALL OVER THE WORLD THERE ARE PLENTY OF EAGER BUYERS FOR THE BONDS AND MORE RECENTLY THE UNCONVERTED DEBT PAPER INVESTORS SUCH AS THE DART FAMILY ARE CLAMORING FOR ATTENTION DURING DEBT TALKS ACCORDING TO STEPHEN DIZARD MANAGING DIRECTOR OF EMERGINGMARKET TRADING AT SALOMON BROTHERS INC THE WHOLE MARKET FOR EMERGINGNATION DEBT HAS CHANGED SIGNIFICANTLY WITH A THIRD OF THE DEBT BEING HELD OUTSIDE THE BANKS THE DART FAMILY OWNS 7 OF THE COMMON STOCK OF SALOMON BROTHERS LAST YEAR BRAZIL OFFERED THE BANK ADVISORY COMMITTEE SEVERAL OPTIONS FOR CONVERTING THEIR DEBT PAPER MOST HOLDERS CHOSE THE OPTION OF CONVERTING TO PAR BONDS WHICH WOULD GIVE THEM FULL FACE VALUE BUT A LOWER FIXED INTEREST RATE THE PRINCIPAL PAYMENT WOULD BE COLLATERALIZED BY US TREASURY ZEROCOUPON BONDS PURCHASED BY BRAZIL WITH LOANS FROM THE INTERNATIONAL MONETARY FUND THE DART FAMILY WAS ONE OF THE FEW INVESTORS THAT CHOSE THE CAPITALIZATION BONDS ACCORDING TO THE FAMILY THE CAPITALIZATION BONDS WOULD BE CONVERTED AT FULL FACE VALUE AT AN INTEREST RATE OF 4 THAT WOULD GRADUALLY INCREASE TO A FIXED RATE 8 OVER SIX YEARS THESE BONDS WOULDN'T HAVE ANY COLLATERAL BACKING THEM AND WOULD PAY THE DIFFERENCE IN INTEREST BETWEEN 8 AND THE CURRENT COUPON IN THE FORM OF MORE BONDS UNTIL THE RATE IS FIXED AT 8 BRAZIL FACED WITH THE POSSIBILITY OF HAVING LOWER INTEREST COSTS BUT LITTLE NET DEBT REDUCTION TO SHOW TO ITS PEOPLE ASKED THE BANK ADVISORY COMMITTEE TO CONVERT A MINIMUM OF 35 OF THEIR DEBT PAPER INTO A THIRD ALTERNATIVE DISCOUNT BONDS WHICH WOULD BE DEBT PAPER CONVERTED AT A DISCOUNT TO THE FULL FACE VALUE BUT WITH A FLOATING INTEREST RATE AND ALSO COLLATERALIZED BY US TREASURYS THE COMMITTEE FINALLY AGREED TO THE REQUEST AND MOST OF ITS MEMBERS CHANGED THEIR ALLOCATIONS ACCORDINGLY THE DART FAMILY BALKED AND MET WITH BRAZILIAN FINANCE OFFICIALS EARLIER THIS MONTH TO SEEK DISPENSATION ALLOWING IT TO CONVERT ALL OF ITS HOLDINGS INTO CAPITALIZATION BONDS THE FAMILY ALSO LOBBIED THE ADVISORY COMMITTEE BUT THE BANKS DECIDED AGAINST THE DARTS AND PERSUADED THE BRAZILIAN OFFICIALS TO DO THE SAME ACCORDING TO A FAMILY STATEMENT THE RESULT IS AN IMPASSE THE FAMILY SAID IN A STATEMENT LAST WEEK THAT IT EXPECTS TO HOLD ITS EXISTING BRAZILIAN CREDITS AS A LONGTERM INVESTMENT CLOSELYHELD DART CONTAINER ISN'T RELATED TO PUBLICLY TRADED DART GROUP CORP IN WHICH HAFT FAMILY MEMBERS ARE MAJORITY SHAREHOLDERS BRADYPLAN DEBT RESTRUCTURINGS IN BILLIONS OF US DOLLARS BONDS AND INCLUDES SOME PAST DUE ARREARS THAT HAVE ALREADY BEEN CONVERTED 9310190005 931019 KIII'S ACQUISITION OF ACUKWIK NEW YORK KIII COMMUNICATIONS CORP SAID IT ACQUIRED ACUKWIK A PRIVATELY HELD PUBLISHER OF DIRECTORIES FOR CORPORATE PILOTS AND FLIGHT DEPARTMENTS TERMS WEREN'T DISCLOSED THE PUBLISHING AND INFORMATIONSERVICES COMPANY SAID IN A PRESS RELEASE THAT ACUKWIK OMAHA NEB WILL OPERATE AS PART OF ITS INTERTEC PUBLISHING UNIT 9310190004 931019 GE CAPITAL PLANS BEIJING OFFICE HONG KONG GENERAL ELECTRIC CAPITAL CORP A UNIT OF GENERAL ELECTRIC CO SAID IT WAS GRANTED APPROVAL TO OPEN A REPRESENTATIVE OFFICE IN BEIJING THE COMPANY SAID THE NEW OFFICE WILL CONCENTRATE ON DEVELOPING A RANGE OF FINANCIAL SERVICES INCLUDING PROJECT INDUSTRIAL AND CONSUMER FINANCE 9310190003 931019 INTERNATIONAL JAPAN'S SURPLUS IN TRADE WIDENS DESPITE STRONG YEN BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S MERCHANDISE TRADE SURPLUS EXTENDED ITS RELENTLESS RISE IN SEPTEMBER AS EXPORTS CONTINUE TO OUTSTRIP IMPORTS DESPITE THE STRONG YEN JAPAN'S TRADE SURPLUS WITH THE WORLD GREW 54 IN SEPTEMBER FROM A YEAR EARLIER TO 1273 BILLION THE FINANCE MINISTRY SAID IT WAS THE 33RD CONSECUTIVE MONTH OF YEARONYEAR INCREASES JAPAN'S SURPLUS WITH THE US ALONE GREW 17 TO 567 BILLION DRIVEN HIGHER BY EXPORTS OF SEMICONDUCTORS AND OTHER COMPONENTS ECONOMISTS BLAME THE RISING SURPLUS ON FAILED GOVERNMENT EFFORTS TO REVIVE JAPAN'S SLUMPING ECONOMY WITHOUT A TURNAROUND THEY SAY CONSUMPTION IN JAPAN WON'T RECOVER ENOUGH TO DRAW THE IMPORTS NEEDED TO CORRECT THE TRADE IMBALANCE JAPANESE GOVERNMENT OFFICIALS ARGUE THAT THE YEN'S 18 APPRECIATION AGAINST THE DOLLAR OVER THE PAST YEAR IS INFLATING THE SURPLUS WHEN MEASURED IN DOLLARS MINISTRY OFFICIALS NOTED THAT WHEN MEASURED IN YEN THE SURPLUS SHRANK 112 FROM A YEAR EARLIER IN SEPTEMBER THE FOURTH MONTH OF YENBASED DECLINES A STRONGER JAPANESE CURRENCY MAKES DOLLARBASED IMPORTS LESS EXPENSIVE IN JAPAN AND HAS BEEN SEEN BY SOME POLICY MAKERS INCLUDING MANY IN THE US AS A KEY TO REDUCING THE TRADE IMBALANCE ECONOMISTS NOTE THAT IMPORTS ARE RISING ALBEIT SLOWLY THE LATEST TRADE DATA SHOWED IMPORTS INCREASED 64 IN SEPTEMBER FROM THE YEARAGO PERIOD TO 2079 BILLION STILL EXPORTS ROSE ALMOST AS MUCH GAINING 6 ON THE YEAR FOR A TOTAL OF 3352 BILLION FOR THE MONTH EXPORTS OF AUTOMOBILES FELL 84 AND THOSE OF AUDIOVISUAL EQUIPMENT FELL 11 REFLECTING IN LARGE MEASURE SHIFTS BY JAPANESE COMPANIES TO MOVE PRODUCTION OVERSEAS JAPAN'S SURPLUS WITH THE EUROPEAN COMMUNITY DECLINED FROM A YEAR EARLIER FOR THE EIGHTH CONSECUTIVE MONTH PLUNGING 20 TO 280 BILLION AS THE ECONOMIC SLOWDOWN IN EUROPE SQUELCHED DEMAND FOR JAPANESE PRODUCTS JAPAN'S SURPLUS WITH THE NEWLY INDUSTRIALIZED ECONOMIES OF SOUTH KOREA TAIWAN HONG KONG AND SINGAPORE ROSE 10 ON THE YEAR TO 482 BILLION WHILE ITS SURPLUS WITH THE SIX MEMBERS OF THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS ROSE 30 TO 163 BILLION 9310190002 931019 WHO'S NEWS IDEC PHARMACEUTICALS CORP IDEC PHARMACEUTICALS CORP SAN DIEGO DAVID LUDVIGSON WAS APPOINTED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS PHARMACEUTICALS CONCERN MR LUDVIGSON 43 YEARS OLD PREVIOUSLY WAS A SENIOR VICE PRESIDENT AT CONNER PERIPHERALS 9310190001 931019 WHO'S NEWS IPSCO INC IPSCO INC REGINA SASKATCHEWAN MILAN KOSANOVICH VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS STEELMAKING CONCERN WILL RESIGN FROM HIS POSITIONS AT THE COMPANY EFFECTIVE JAN 1 1994 IPSCO SAID MR KOSANOVICH 49 YEARS OLD STEPPED DOWN IN ORDER TO ASSUME EXECUTIVE RESPONSIBILITIES WITH ANOTHER STEEL COMPANY A SPOKESWOMAN FOR IPSCO DECLINED TO IDENTIFY THE COMPANY AND MR KOSANOVICH COULDN'T BE REACHED FOR COMMENT 9310190115 930928 FOOD MAN WALKED ON THE MOON BUT MAN CAN'T MAKE ENOUGH DEVIL'S FOOD COOKIE CAKES BY KATHLEEN DEVENY STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU THINK THE SPACE PROGRAM HAS TECHNICAL PROBLEMS CONSIDER NABISCO BISCUIT CO'S SNACKWELL'S DEVIL'S FOOD COOKIE CAKES MORE THAN A YEAR AFTER THE LAUNCH OF THE FATFREE CHOCOLATEANDMARSHMALLOW COOKIES NABISCO IS STILL UNABLE TO MEET CONSUMER DEMAND SUPERMARKETS NATIONWIDE SAY SUPPLIES OF THE COOKIE ARE TIGHTLY RATIONED AND THAT THE SHORTAGE HAS CREATED A BUYING FRENZY AMONG SOME CONSUMERS WHO VIEW THE FATFREE COOKIES AS THE PERFECT FOOD HEALTHY SWEETS THE SHORTAGE HAS COST NABISCO WHICH SAYS IT IS MAKING A MILLION COOKIE CAKES A DAY UNTOLD DOLLARS IN LOST SALES AND HAS EVEN INSPIRED A TELEVISION COMMERCIAL IT FEATURES THREE ANGRY WOMEN CONFRONTING A NABISCO BAKER ABOUT THEIR SUPPLY PROBLEM THE TIGHT SUPPLIES HAVE LED SOME INDUSTRY OBSERVERS TO WONDER IF THE GREAT COOKIE SHORTAGE IS MORE MARKETING STRATEGY THAN MANUFACTURING PROBLEM IT'S DIFFICULT TO BELIEVE THAT IT ISN'T A MARKETING PLOY SAYS RAY LAHVIC EDITOR EMERITUS OF BAKERY PRODUCTION & MARKETING A CHICAGOBASED MAGAZINE IF THEY'VE HAD ENOUGH TIME TO MAKE A COMMERCIAL WHY CAN'T THEY JUST MAKE MORE COOKIES SO WHY CAN'T NABISCO WHICH WILL BAKE SOME 600 MILLION POUNDS OF COOKIES THIS YEAR SIMPLY MAKE MORE OF THE SCARCE SWEETS THE DEVIL'S FOOD COOKIE CAKE IT TURNS OUT IS ONE TOUGH COOKIE TO PRODUCE WHIPPING UP CONFECTIONS THAT REQUIRE ONLY SHAPING AND BAKING SUCH AS LORNA DOONE SHORTBREAD OR CHIPS AHOY CHOCOLATE CHIP COOKIES IS A BREEZE BY COMPARISON ACCORDING TO BRIAN BEGLIN SENIOR DIRECTOR OF OPERATIONS SERVICES FOR NABISCO EVEN MORE ELABORATE COOKIES THAT REQUIRE SEVERAL PRODUCTION STEPS INCLUDING FIG NEWTONS OR OREOS ARE EASIER TO MAKE THAN THE COOKIE CAKE THERE IS NO SUCH THING AS A SIMPLE COOKIE MR BEGLIN SAYS BUT THE DEVIL'S FOOD COOKIE CAKE IS THE HARDEST ONE WE MAKE THE MAIN CULPRIT MARSHMALLOW CREAM LESS COMPLEX CONFECTIONS SUCH AS MALLOMARS OR PINWHEELS HAVE THE STICKY STUFF ONLY ON ONE SIDE OF THE COOKIE CENTER HENCE THEY MAY BE PLACED ON A CONVEYOR BELT AFTER THEY ARE COATED WITH CHOCOLATE ENROBED IN COOKIE LINGO AND WHISKED ALONG TOWARD A WAITING BOX OR BAG THE SNACKWELL'S COOKIE CENTER BY CONTRAST IS COVERED ON ALL SIDES WITH MARSHMALLOW THEN IT IS COMPLETELY DRENCHED WITH CHOCOLATE ICING FOLLOWED BY A SEPARATE CHOCOLATE GLAZE BECAUSE THE COOKIE IS COMPLETELY ENROBED IT WOULD STICK TO A CONVEYOR BELT THAT MEANS DEVIL'S FOOD COOKIES REQUIRE CUSTOMMADE MACHINERY THAT EQUIPMENT IS CURRENTLY AVAILABLE IN JUST ONE BAKERY IN SIOUX CITY SD OWNED BY INTERBAKE FOODS INC OFFICIALS OF NABISCO A UNIT OF RJR NABISCO HOLDINGS CORP WON'T DISCUSS THE ARRANGEMENT ALTHOUGH SUCH CONTRACTS ARE COMMON IN THE COOKIE INDUSTRY INTERBAKE OFFICIALS ALSO WON'T COMMENT ADDING CAPACITY WOULD BE DIFFICULT AND EXPENSIVE THE SIOUX CITY BAKERY USES A METHOD CALLED A PIN TROLLEY SYSTEM THAT HAS NOT CHANGED MUCH SINCE THE 1920S WHEN THE DEVIL'S FOOD COOKIE WAS CREATED AFTER BAKING FOR SIX MINUTES EACH COOKIECAKE CENTER IS PLACED ON AN UPRIGHT PIN ACTUALLY A TINY TWOPRONGED FORK THAT IS MOUNTED ON A TROLLEY THE WHOLE CONTRAPTION IS PULLED BY A CHAIN ALONG A MILELONG TRACK THAT SNAKES AROUND THE BAKERY FOR FOUR HOURS PASSING THROUGH THE MARSHMALLOW AND CHOCOLATE COATINGS EN ROUTE FURTHER COMPLICATING MATTERS BECAUSE THE CHOCOLATE COVERING IS FATFREE IT CANNOT BE CHILLED TO SPEED THE SETTING PROCESS INSTEAD IT MUST BE ALLOWED TO AIR DRY BETWEEN COATS THAT MEANS THE ENTIRE PROCESS TAKES FOUR HOURS COMPARED TO ONLY ABOUT 30 MINUTES FROM THE TIME CHIPS AHOY DOUGH IS SLICED TO THE TIME THE VENERABLE CHOCOLATECHIP PRODUCT IS PACKAGED WHY DID NABISCO LAUNCH A PRODUCT THAT REQUIRES A PRODUCTION SYSTEM ONLY SLIGHTLY MORE EFFICIENT THAN LITTLE ELVES IN A HOLLOW TREE THE COMPANY HAD MARKETED A SIMILAR DEVIL'S FOOD SNACK CAKE MADE BY THE SAME CUMBERSOME METHOD FOR MANY DECADES THOUGH SALES OF THE ORIGINAL COOKIE NEVER AMOUNTED TO MUCH BUT DEVIL'S FOOD IS NATURALLY LOW IN FAT BECAUSE IT IS MADE WITH COCOA INSTEAD OF CHOCOLATE THAT MADE REMOVING THE FAT RELATIVELY EASY AND DIDN'T REQUIRE NABISCO TO DEVELOP FAT SUBSTITUTES THE DEVIL'S FOOD COOKIES WHICH AVERAGE 199 FOR A BOX OF 12 COOKIES STRUCK AN UNEXPECTED CHORD WITH CONSUMERS THERE ARE PLENTY OF OTHER REDUCEDFAT COOKIES ON THE MARKET BUT FEW HAVE WHAT THE NEWLY HEALTHCONSCIOUS APPARENTLY CRAVE MOST AUTHENTICTASTING CHOCOLATE ALTHOUGH PARTICIPANTS IN AN INFORMAL TASTE TEST COMPLAINED THAT THE COOKIE CENTERS WERE DRY THEY DUBBED THE CHOCOLATEY FLAVOR SUPERIOR TO MOST OTHER LOWFAT ALTERNATIVES DESPITE THE SHORTAGE THE DEVIL'S FOOD COOKIE CAKE RANG UP SUPERMARKET SALES OF MORE THAN 26 MILLION IN ITS FIRST YEAR ACCORDING TO INFORMATION RESOURCES INC ONCE THE COOKIE BECAME A HIT NABISCO WAS TRAPPED THE FACT THAT IT IS A FULLYENCASED PIECE MAKES IT A UNIQUE EATING EXPERIENCE SAYS NABISCO'S MR BEGLIN WHO SHUDDERS AT THE PROSPECT OF CHANGING THE RECIPE TO SPEED UP PRODUCTION IT HAS A DIFFERENT TEXTURE AND TASTE SENSATION SINCE THE DEVIL'S FOOD COOKIE CAKES PACK 50 CALORIES EACH THEY ARE NOT LIKELY TO BE POPULAR FOR LONG AMONG CALORIECOUNTERS MEANWHILE NEW COMPETITION HAS ARRIVED KEEBLER IS NOW LAUNCHING A REDUCEDFAT COOKIE LINE OF ITS OWN CALLED ELFIN DELIGHTS WHICH INCLUDES A CHOCOLATE FUDGE SANDWICH NABISCO SAYS IT CURRENTLY HAS THREE PRODUCTION LINES RUNNING OVERTIME TO PRODUCE THE DEVIL'S FOOD COOKIE CAKES AND IS ABOUT TO ADD A FOURTH ALL THE CAPACITY CURRENTLY AVAILABLE AT THE INTERBAKE PLANT RIVALS SAY TO KEEP CHOCOLATE LOVERS FROM GROWING TOO RESTIVE THE COMPANY IS ALSO ROLLING OUT A NEW FATFREE SNACKWELL'S DOUBLE FUDGE COOKIE CAKES TWO LAYERS OF CAKE WITH A DOLLOP OF FATFREE FUDGE IN THE MIDDLE AN EASIER COOKIE TO MAKE ADS FOR THE NEW PRODUCT FEATURE THE SAME NABISCO BAKER WHO FRETS ABOUT WHETHER HE WILL HAVE THE SAME PROBLEMS MEETING DEMAND UNTIL NABISCO CAN ACCURATELY GAUGE DEMAND FOR THE NEW PRODUCT IT IS BEING SOLD ONLY IN NORTH EASTERN STATES SAYS A COMPANY SPOKESMAN WE'VE LEARNED OUR LESSON AMONG THE EASIER COOKIES TO PRODUCE THIS SHORTBREAD CONFECTION REQUIRES ONLY SHAPING AND BAKING FAIRLY SIMPLE ALTHOUGH APPEARANCE IS QUITE IMPORTANT OVENTOBAG TIME IS ONLY ABOUT 30 MINUTES BUT A VERSION WITH CANDY SPRINKLES REQUIRES AN EXTRA STEP FRUITFILLED COOKIES ARE A BIT TRICKIER BECAUSE THE FRUIT MUST BE THE PERFECT CONSISTENCY AND THE EDGES OF CAKELIKE CASING MUST MATCH PERFECTLY EACH OF THE CHOCOLATECOOKIE BASE CAKES MUST BE PERFECTLY SHAPED WITH JUST THE RIGHT AMOUNT OF ICING SANDWICHED BETWEEN THEM REQUIRES FOUR HOURS TO SNAKE AROUND A MILELONG TRACK WHILE THE DEVIL'S FOOD CAKE CENTER IS COVERED WITH MARSHMALLOW CHOCOLATE ICING AND A CHOCOLATE GLAZE SEE RELATED LETTER LETTERS TO THE EDITOR DEVIL'S FOOD FRENZY WSJ OCT 19 1993 9309280103 YY93 MM10 9310190111 930921 LEISURE & ARTS BOOKSHELF DC HOLLYWOOD IN CAHOOTS BY LEE LESCAZE IT HAS ALWAYS BEEN FASHIONABLE TO MOCK HOLLYWOOD AS A CITY OF LIES BUT IN RECENT DECADES WASHINGTON ALSO HAS BEEN RUNNING STRONGLY IN THE MENDACITY SWEEPSTAKES IN NO SMALL PART BECAUSE TOO MANY POLITICIANS HAVE CONVERTED TO ONE OF HOLLYWOOD'S CORE DOCTRINES A STORY NEEDN'T BE TRUE SO LONG AS PEOPLE BELIEVE IT IS TRUE IN OTHER WORDS THE IMAGE IS MORE IMPORTANT THAN THE REALITY IN FACT THERE DOESN'T HAVE TO BE ANY REALITY IN A LIFE REVOLVING AROUND PRIME TIME EVENTS EVEN EVENTS INVOLVING THOUSANDS OF PEOPLE CAN BE ARRANGED SOLELY FOR THE CAMERAS LARRY BEINHART TAKES THE TRIUMPH OF THE IMAGE MAKER TO NEW HEIGHTS IN HIS NOVEL AMERICAN HERO PANTHEON 431 PAGES 23 HE BRINGS HOLLYWOOD AND WASHINGTON TOGETHER IN A STEW OF CONSPIRACY SEX AND DERRINGDO GEORGE BUSH JAMES BAKER LEE ATWATER AND SADDAM HUSSEIN PLAY IMPORTANT ROLES AS DOES A LARGE CAST OF FICTIONAL CHARACTERS WORRIED ABOUT THE MIX OF FANTASY AND REALITY MR BEINHART IS POSITIVELY NONCHALANT A PARAGRAPH ALLEGING THAT A BEAUTIFUL ASPIRING ACTRESS HAS SLEPT WITH PATRICK SWAYZE KEVIN COSTNER AND MADONNA IS INSOUCIANTLY FOOTNOTED WE REMIND THE READER AND THE ATTORNEYS THAT JACQUELINE CONROY IS A FICTIONAL PERSON THE SUGGESTION THAT A FAMOUS PERSON HAD OR HAS FICTIONAL SEX WITH A NONEXISTENT PERSON SHOULD NOT IN THE NORMAL COURSE OF THINGS BE LIBELOUS BUT MR BEINHART AUTHOR OF THREE EARLIER NOVELS AND WINNER OF AN EDGAR AWARD LEVELS MORE SHOCKING ALLEGATIONS THAN BEDHOPPING AT HIS REALLIFE CHARACTERS HE CONCOCTS A LURID EXPLANATION FOR WHY SADDAM MARCHED HIS DIVISIONS INTO KUWAIT AND THEN SAT STILL FOR MONTHS UNTIL THE USLED COALITION WAS READY TO ATTACK HIS IMMOBILE OUTGUNNED ARMY AND ALONG THE WAY HE GIVES US JOE BROZ A TOUGH PRIVATE EYE UPDATED FOR THE 1990S BY VIETNAM COMBAT EXPERIENCE HIGHTECH VIRTUOSITY AND MARTIALARTS SKILLS AS A JOKE ON ALL HIS HOLLYWOOD PROGENITORS JOE ONCE KEPT A BOURBON BOTTLE IN HIS DESK DRAWER IT WAS FILLED WITH TEA WE ALSO MEET GORGEOUS MOVIE STAR MAGDALENA LAZLO SHE IS THE KIND OF WOMAN PHILIP MARLOW ALWAYS SAID MAKES MEN DO THEIR THINKING BELOW THE BELT AND THAT'S THE REACTION SHE PRODUCES IN JOE A FAMOUS MOVIE DIRECTOR HAS DROPPED A PROJECT UNDER MYSTERIOUS CIRCUMSTANCES STRANGE THINGS HAVE BEEN HAPPENING IN MAGDALENA'S LIFE SHE IS SCARED AND SO LIKE MANY BEAUTIFUL HOLLYWOOD WOMEN BEFORE HER SHE SEEKS PROTECTION FROM HER FEARS WITH A PRIVATE DETECTIVE AMERICAN HERO IS A COMPLICATED CREATION MR BEINHART HAS MERGED HIS SAVAGE INDICTMENT OF THE BUSH ADMINISTRATION'S CYNICISM WITH THE SELFMOCKING SELFREFERENTIAL STYLE OF A HOLLYWOOD HARDBOILED DETECTIVE MYSTERY FROM THE SCHOOL OF RAYMOND CHANDLER AND ROSS MACDONALD THE PARTS FIT TOGETHER AWKWARDLY MUCH OF THE HOLLYWOOD ACTION SEEMS FAMILIAR AND IRRELEVANT TO THE MAIN POINT OF THE NOVEL WHICH IS THAT PRESIDENT BUSH AT THE SUGGESTION OF LEE ATWATER DECIDED THAT A WAR WAS NECESSARY TO REVIVE HIS FLAGGING POPULARITY AND THEN TURNED THE CREATION OF THE WAR OVER TO HOLLYWOOD SUCH PREPOSTEROUS INVENTION MIGHT SEEM MORE WICKEDLY INVITING IF DESERT STORM HAD ENSURED MR BUSH'S REELECTION AND HE WERE STILL PRESIDENT THE PUBLISHER OF AMERICAN HERO LIKE EVERYONE CONNECTED WITH ANY GRIM HUMOR PROJECT OF THE PAST THREE DECADES INVITES COMPARISONS TO CATCH22 IT IS THE GENIUS OF CATCH22 THAT THE DESPERATION OF ITS CHARACTERS IS PASSIONATELY FELT HOWEVER ABSURD THE JOKES BECOME THEY ARE SQUIRRELS IN A WHEEL RUNNING FOR THEIR LIVES NOTHING IN AMERICAN HERO EXCEPT JOE BROZ'S REMINISCENCES OF VIETNAM SEEMS PASSIONATELY FELT VIETNAM SERVES AS A PRIMORDIAL SOURCE FOR THE CORRUPTION THAT PERVADES JOE AND MAGDALENA'S WORLD JOE IS FURIOUS AS ALL COMBAT VETERANS HAVE A STRONG RIGHT TO BE WITH THE MEN WHO DESIGNED THE US STRATEGY FOR READERS WHO CARE WHETHER A PLOT MAKES SENSE OR NOT THE CENTRAL CONNECTION BETWEEN HOLLYWOOD AND WASHINGTON IS SO FLIMSY THAT IT UNDERMINES THE NOVEL CERTAINLY READERS CAN BE ASKED TO BELIEVE THAT THE US PAID SADDAM TO INVADE KUWAIT AND BECOME AN EASY VICTIM OF A MORALEBUILDING US WAR BUT WHY WOULD WASHINGTON NEED HOLLYWOOD TO WRITE AND DIRECT SUCH A SCENARIO DON'T WE ALREADY HAVE THE CENTRAL INTELLIGENCE AGENCY AS AN AIRPLANERIDE PAGE TURNER AMERICAN HERO MIGHT FILL THE BILL SEXUAL ACTS KINKY AND NOT TAKE PLACE AT REGULAR INTERVALS VIOLENCE TOO A MORE AMUSING WAY TO PASS A COASTTOCOAST FLIGHT WOULD BE WITH CHARLIE HAUCK'S ARTISTIC DIFFERENCES MORROW 238 PAGES 21 THIS IS A SIMPLER FUNNIER BOOK A HOLLYWOOD NOVEL THAT STICKS TO THE HOLLYWOOD WE KNOW AND LOVERAPACIOUS MOGULS EGOMANIACAL PERFORMERS LONGSUFFERING WRITERS AND BIG HAIR THERE WAS NO ROOM IN HER HEAD FOR IRONY TOO MANY HAIR ROOTS MR HAUCK A TELEVISION COMEDY WRITER TELLS US OF ONE MULTITRESSED BEAUTY MR HAUCK SIMPLY WANTS TO MAKE READERS LAUGH HE SUCCEEDS OFTEN ONE OF HIS MOVIE MOGULS TREATS WRITERS BADLY SAYING PLEASE A LOT AND NEVER THANK YOU MR HAUCK ADDS HE THOUGHT THAT AN EXPRESSION OF APPRECIATION WAS IN SOME WAY A DISPLAY OF WEAKNESS HE'D MAKE A GREAT FATHER SOME DAY A SEXY SECRETARY PLANNING A FLORIDA TRIP OVERHEARS A MENTION OF VIRGINIA WOOLF SHE ASKS HER BOSS DID SHE JUST WRITE ABOUT THE ORLANDO AREA SEE RELATED LETTER LETTERS TO THE EDITOR WE'RE DECLARING WAR GET ME CENTRAL CASTING' WSJ OCT 19 1993 9309210106 YY93 MM10 9310180161 931018 DETROIT EDISON TO REDEEM DEBT DETROIT DETROIT EDISON CO SAID IT PLANS TO REDEEM ITS OUTSTANDING 7 3/8 SERIES Y GENERAL AND REFUNDING MORTGAGE BONDS AT A PRICE OF 10089 PLUS ACCRUED INTEREST THE REDEMPTION DATE IS NOV 9310180160 931018 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT COMCAST CORP 4967 MILLION FACE 275 MILLION PROCEEDS OF CONVERTIBLE ORIGINALISSUE DISCOUNT BONDS DUE APRIL 15 2007 PRICED AS 1125S AT 55363 TO YIELD 6 THE BONDS CALLABLE AFTER FOUR YEARS WILL CONVERT INTO THE COMPANY'S NONVOTING CLASS K STOCK AT 43 A 174 CONVERSION PREMIUM RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF STEPUP NOTES DUE OCT 25 1996 PRICED AT PAR TO YIELD 3875 ACCORDING TO MCM CORPORATEWATCH THE COUPON ON THE NOTES WHICH ARE NONCALLABLE FOR ONE YEAR WILL INCREASE TO 445 AFTER ONE YEAR THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF MEDIUMTERM NOTES DUE OCT 26 1998 PRICED AT PAR TO YIELD 475 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 21 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF MEDIUMTERM NOTES DUE OCT 24 2003 PRICED AT PAR TO YIELD 575 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 58 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FIRST UNION CORP 200 MILLION OF SUBORDINATED NOTES DUE OCT 30 2008 PRICED AS 6S AT 9925 TO YIELD 6077 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 90 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CHASE SECURITIES INC MEGAFOODS STORES INC 100 MILLION OF NOTES DUE OCT 15 2000 PRICED AS 1025S AT 98782 TO YIELD 105 THE NONCALLABLE SENIOR NOTES WERE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY PAINEWEBBER INC NORWEST CORP 200 MILLION OF SUBORDINATED DEBENTURES DUE OCT 15 2023 PRICED AS 665S AT 99606 TO YIELD 668 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 72 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO PEPSICO INC 100 MILLION OF MEDIUMTERM NOTES DUE NOV 1 2008 PRICED AS 57S AT 99955 TO YIELD 5705 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO TALLEY INDUSTRIES INC 70 MILLION PROCEEDS OF SENIOR DISCOUNT NOTES NOTES DUE OCT 15 2005 PRICED AT 55312 TO YIELD 1225 THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEBMINUS BY S&P TALLEY MANUFACTURING & TECHNOLOGY INC 115 MILLION OF SENIOR NOTES DUE OCT 15 2003 PRICED AT PAR TO YIELD 1075 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P TALLEY MANUFACTURING IS A TALLEY INDUSTRIES INC UNIT WICKES LUMBER CO 100 MILLION OF SENIOR SUBORDINATED NOTES DUE DEC 15 2003 PRICED AT PAR TO YIELD 11625 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR SEVEN YEARS WERE RATED SINGLEB3 BY MOODY'S AND SINGLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BT SECURITIES CORP NAVISTAR INTERNATIONAL CORP 22 MILLION COMMON SHARES PRICED AT 21875 EACH ACCORDING TO THE COMPANY CS FIRST BOSTON LEHMAN BROTHERS INC AND JP MORGAN SECURITIES INC ARE MANAGING THE OFFERING IN THE US AND CANADA CS FIRST BOSTON LEHMAN BROTHERS JP MORGAN SECURITIES AND SWISS BANK CORP ARE MANAGING THE 44 MILLIONSHARE INTERNATIONAL OFFERING NOBLE AFFILIATES INC 45 MILLION COMMON SHARES PRICED AT 2950 EACH THROUGH UNDERWRITERS LED BY PAINEWEBBER INC ULTIMATE ELECTRONICS INC INITIAL PUBLIC OFFERING OF TWO MILLION SHARES OF COMMON STOCK PRICED AT 850 EACH THROUGH PIPER JAFFRAY INC FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES GOLD 1627 IS BACKED BY THE AGENCY'S GOLD 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 600 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1993225 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 725 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS GENERAL MOTORS ACCEPTANCE CORP 133 BILLION OF ASSETBACKED CERTIFICATES PRICED IN SIX PARTS BY UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST FOUR FIXEDRATE CLASSES IN THE TRANSACTION CAPITAL AUTO RECEIVABLES ASSET TRUST 19933 WERE STRUCTURED WITH FINAL MATURITIES OF LESS THAN ONE YEAR TO COMPLY WITH MONEYMARKETFUND REGULATIONS THE CLASSES WERE RATED P1 BY MOODY'S SINGLEA1PLUS BY S&P SINGLEF1PLUS BY FITCH INVESTORS SERVICE INC AND SINGLED1PLUS BY DUFF & PHELPS CO THE 430 MILLION OF CLASS A1 CERTIFICATES WAS PRICED AS 33S AT PAR THE CERTIFICATES WITH AN AVERAGE LIFE OF 057 YEAR WILL BE DISTRIBUTED IN 13 MONTHLY PAYMENTS EACH TOTALING 33077 MILLION EACH PAYMENT WAS SEPARATELY RATED AND GIVEN ITS OWN STATED FINAL MATURITY THE 59 MILLION OF CLASS A2 CERTIFICATES WAS PRICED AS 325S AT PAR THE CERTIFICATES WITH AN AVERAGE LIFE OF 023 YEAR PAY QUARTERLY THE 63 MILLION OF CLASS A3 CERTIFICATES WAS PRICED AS 325S AT PAR THE CERTIFICATES WITH AN AVERAGE LIFE OF 048 YEAR PAY QUARTERLY THE 210 MILLION OF CLASS A4 CERTIFICATES WAS PRICED AS 33S AT PAR THE CERTIFICATES WITH AN AVERAGE LIFE OF 034 YEAR PAY QUARTERLY THE 4843 MILLION OF CLASS A5 CERTIFICATES WAS PRICED AS 365S AT 999375 TO YIELD A SPREAD OF 375 BASIS POINTS ABOVE THE WHENISSUED ONEYEAR TREASURY BILL THE CERTIFICATES HAVE AN AVERAGE LIFE OF 093 YEAR AND WERE RATED TRIPLEA BY THE FOUR RATING AGENCIES THE 8141 MILLION IN CLASS B CERTIFICATES WAS PRICED AS 46S AT 9984375 TO YIELD 73 BASIS POINTS ABOVE THE INTERPOLATED 275YEAR TREASURY THE CERTIFICATES HAVE AN AVERAGE LIFE OF 275 YEARS AND WERE RATED SINGLEA2 BY MOODY'S SINGLEAPLUS BY S&P SINGLEA BY FITCH AND DOUBLEAMINUS BY D&P GMAC IS A GENERAL MOTORS CORP UNIT ABBEY NATIONAL TREASURY SERVICES PLC UK PARENT 200 BILLION LIRE OF 8 EUROBONDS DUE NOV 3 1998 AT ISSUE PRICE 101965 VIA BANCA COMMERCIALE ITALIANA AND EUROMOBILIARE SPA BONDS YIELD 798 AFTER DEDUCTING FEES OF 1875 GUARANTOR ABBEY NATIONAL PLC BANCA NAZIONALE DEL LAVORO ITALY 100 MILLION OF 7125 DEPOSITARY RECEIPTS DUE NOV 12 1998 AT ISSUE PRICE 10104 VIA IBJ INTERNATIONAL LTD REOFFERED AT 9949 TO YIELD 725 A MARGIN OF 90 BASIS POINTS OVER COMPARABLE GILT FEES 1875 COMMERZBANK OVERSEAS FINANCE NV GERMAN PARENT 500 MILLION MARKS OF 5875 EUROBONDS DUE OCT 27 2000 AT ISSUE PRICE 1015 VIA COMMERZBANK AG BONDS YIELD 601 AFTER DEDUCTING FULL FEES OF 225 GUARANTOR COMMERZBANK AG DEUTSCHE FINANCE NETHERLANDS BV GERMAN PARENT 750 MILLION MARKS OF 6 EUROBONDS DUE NOV 11 2003 VIA DEUTSCHE BANK AG FIRST 500 MILLION MARKS OF BONDS ISSUED AT 10175 ADDITIONAL 250 MILLION MARKS OF BONDS ISSUED AT 1019 REOFFERED AT 9955 GUARANTOR DEUTSCHE BANK AG FEES 25 NORTH AMERICAN CAPITAL CORP CANADIAN PARENT 100 MILLION OF 825 EUROBONDS DUE NOV 17 2003 AT ISSUE PRICE 100204 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD REOFFERED AT 98704 TO YIELD 8276 A MARGIN OF 145 BASIS POINTS OVER COMPARABLE GILT SCICI LTD INDIA 100 MILLION OF CONVERTIBLE EUROBONDS DUE APRIL 1 2004 AT ISSUE PRICE PAR VIA BZW SECURITIES LTD COUPON INDICATED AT 35 TO 4 BONDS CONVERTIBLE INTO ORDINARY SHARES OF COMPANY FROM JAN 19 1994 AT CONVERSION PREMIUM 7 TO 12 TUESDAY'S CLOSING SHARE PRICE ON BOMBAY STOCK EXCHANGE 121 RUPEES FINAL TERMS FIXED OCT 18 BONDS CALLABLE AFTER FIVE YEARS AT PAR SUBJECT TO THENPREVAILING SHARE PRICE BEING AT LEAST 140 OF CONVERSION PRICE PUT OPTION EXERCISABLE AFTER FIVE YEARS TO YIELD A MARGIN OF 100 BASIS POINTS OVER COMPARABLE TREASURY FEES 275 LESS 04 FOR LEAD MANAGER SUMITOMO REALTY & DEVELOPMENT CO JAPAN 30 BILLION YEN OF 37 EUROBONDS DUE OCT 29 1998 AT ISSUE PRICE 101875 VIA DAIWA EUROPE LTD REOFFERED AT 10035 TO YIELD 362 FEES 1875 TRINIDAD AND TOBAGO SOVEREIGN 125 MILLION OF 975 EUROBONDS DUE NOV 3 2000 AT ISSUE AND REOFFER PRICE 9979 VIA CREDIT SUISSE FIRST BOSTON LTD BONDS YIELD 979 A MARGIN OF 495 BASIS POINTS OVER TREASURY OF AUGUST 2000 PUT OPTION EXER 1998 AT 9719 TO YIELD A MARGIN OF 480 BASIS POINTS OVER TREASURY DUE SEPTEMBER 1998 FEES 15 9310180159 931018 SMALL STOCK FOCUS BIG ENTERTAINMENT HAS GRAND PLANS BUT PROSPECTUS OFFERS THRILLS AND CHILLS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EVEN BY THE STANDARDS OF THE CURRENT CRAZY MARKET FOR INITIAL PUBLIC OFFERINGS BIG ENTERTAINMENT HAS LITTLE TO OFFER BUT THAT ISN'T STOPPING IT FROM OFFERING 12 MILLION SHARES FOR AS MUCH AS 96 MILLION EVEN THOUGH IT HAS NO REVENUE MORE DEBT THAN CASH AND A LOSS OF 17 CENTS A SHARE SINCE ITS JANUARY INCEPTION THERE IS ABSOLUTELY NOTHING THERE SAYS PRESTON ATHEY MANAGER OF T ROWE PRICE ASSOCIATES' SMALL CAP VALUE FUND I HAVE LOOKED OVER 500 PROSPECTUSES IN THE PAST YEAR AND THIS IS THE MOST SPECULATIVE OFFERING I HAVE EVER SEEN BUT BIG ENTERTAINMENT HAS SOME BIG PLANS ACCORDING TO ITS PROSPECTUS THE MARKETING DOCUMENT FOR ITS PLANNED OFFERING THE BOCA RATON FLA COMPANY PLANS TO PUBLISH COMIC BOOKS AND VIDEOS BASED ON A FUTURISTIC TECHNOTHRILLER UNIVERSE OF CHARACTERS YET TO BE CREATED THERE'S NO QUESTION THAT LAWYERS HAVE SCRUTINIZED THE PROSPECTUS MONEY MANAGERS SAY THIS IS A DEVELOPMENTSTAGE COMPANY THAT DOESN'T MAKE ANY PROMISES CONSIDER THIS STRAIGHTFORWARD WARNING FROM THE PROSPECTUS IF THE PROCEEDS OF THIS OFFERING PROVE TO BE INSUFFICIENT TO FUND THE COMPANY'S OPERATIONS DUE TO UNANTICIPATED EXPENSES OR DIFFICULTIES THE FAILURE OF THE COMPANY TO REALIZE SUFFICIENT REVENUES FROM ITS OPERATIONS OR OTHERWISE THE COMPANY MAY BE REQUIRED TO SEEK ADDITIONAL FUNDS OR CURTAIL ITS OPERATIONS THAT WARNING FOLLOWS FIVE PAGES OF POINTBYPOINT INVESTMENT RISKS SO WHERE IS THIS UNIVERSE THE TECHNOTHRILLER GENRE IS A GENRE OF A FUTURISTIC BUT NOT TOO DISTANT FUTUREUNIVERSE IN WHICH A LOT OF MILITARY AND POLITICAL EVENTS ARE OCCURRING SAYS MITCHELL RUBENSTEIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR RUBENSTEIN SAYS THE COMPANY HAS AN AGREEMENT WITH AUTHOR MICKEY SPILLANE KNOWN FOR HIS PRIVATEEYE CHARACTER MIKE HAMMER TO CREATE A DETECTIVE FOR BIG ENTERTAINMENT'S UNIVERSE THE COMPANY ALSO INTENDS TO SELECT AS MANY AS 12 BESTSELLING AUTHORS INCLUDING FOUR WHO HAVE SIGNED UP TO COLLABORATE IT PLANS TO EXPAND PUBLICATIONS BY ADDING UNIVERSES AND CHARACTERS BIG ENTERTAINMENT ALSO INTENDS TO MARKET ITS FUTURISTIC UNIVERSE ON MULTIMEDIA CDROMS ACCORDING TO THE PROSPECTUS IT ALSO PLANS A CHAIN OF COMICBOOK KIOSKS OR FREESTANDING BOOTHS EVEN THOUGH THERE ARE NO DISTRIBUTION PLANS OUTLINED IN THE PROSPECTUS INTERNATIONAL BUSINESS MACHINES HAS A LICENSE TO USE BIG ENTERTAINMENT'S UNIVERSE AND CHARACTERS TO PRODUCE MULTIMEDIA PRODUCTS DISNEYMGM STUDIOS AND DISNEY ANIMATION FLORIDA INC ARE MAKING A PROMOTIONAL 30SECOND COMIC VIDEO MR RUBENSTEIN SAYS IN ADDITION ASBURY PARK PRESS OF NEW JERSEY HAS ENTERED INTO AN AGREEMENT TO ACQUIRE A 10 INTEREST IN THE COMPANY FOR 13 MILLION THE PUBLISHING COMPANY OWNS 280719 SHARES MR RUBENSTEIN IS ONE OF THE FOUNDERS OF THE SCIFI CHANNEL A CABLE TELEVISION NETWORK DEVOTED TO SCIENCE FICTION FANTASY AND HORROR PROGRAMMING IT WAS SOLD TO USA NETWORK IN 1992 THE UNDERWRITER RAS SECURITIES IS KNOWN FOR ITS RESEARCH DIRECTOR RAY DIRKS FOUNDER OF THE SHORTBUSTER CLUB AN ANTISHORTSELLING ORGANIZATION IN 1973 WHILE A SECURITIES ANALYST MR DIRKS UNCOVERED THE EQUITY FUNDING CORP OF AMERICA STOCKFRAUD CASE AND ALERTED THE SECURITIES AND EXCHANGE COMMISSION THE SEC CHARGED MR DIRKS WITH INSIDER TRADING FOR NOTIFYING HIS CLIENTS BEFORE THE MATTER BECAME PUBLIC HE WON THE CASE BEFORE THE SUPREME COURT IN 1983 IN MARKET ACTIVITY FRIDAY THE RUSSELL 2000 INDEX A MEASURE OF SMALL STOCKS ON THE NASDAQ MARKET AND THE NEW YORK AND AMERICAN STOCK EXCHANGES CLIMBED 095 OR 037 TO 25998 DECKERS OUTDOOR SURGED 7 TO 22 FROM ITS INITIAL OFFERING PRICE OF 15 THE CARPINTERIA CALIF FOOTWEAR CONCERN OFFERED 25 MILLION SHARES THROUGH UNDERWRITERS LED BY PAINEWEBBER ULTIMATE ELECTRONICS JUMPED TO 10 FROM ITS OFFERING PRICE OF 8 1/2 AFTER THE MARKET CLOSED ON THURSDAY THE COMPANY OFFERED TWO MILLION SHARES THROUGH UNDERWRITERS LED BY PIPER JAFFRAY IT IS A SPECIALTY RETAILER OF HOME ENTERTAINMENT AND CONSUMER ELECTRONICS IN COLORADO UNDER THE NAME SOUNDTRACK 9310180158 931018 LAW LEGAL BEAT MEDICAL PLANS ARE SHOULDERING MORE LIABILITY FOR DOCTORS' ERRORS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL LIKE A BOOMERANG THE IDEA OF HOLDING MEDICAL PLANS LIABLE FOR DOCTORS' BLUNDERS IS COMING BACK EVEN AFTER PRESIDENT CLINTON TOSSED IT AWAY IN JUNE UNDER PRESSURE FROM THE MEDICAL AND TRIAL LAWYER LOBBIES THE PRESIDENT DECIDED NOT TO PROPOSE SOCALLED ENTERPRISE LIABILITY WHICH SHIFTS LEGAL RISK FROM INDIVIDUAL DOCTORS TO LARGER HEALTHCARE ORGANIZATIONS BUT LIKE IT OR NOT LAWYERS SAY THE SHIFT IS TAKING PLACE ANYWAY BECAUSE OF MARKET TRENDS AND COURT RULINGS THAT HAVE EXPANDED THE LIABILITY OF BIG PROVIDERS OF CARE THE HEALTHCARE SYSTEM IS GOING THROUGH A TRANSFORMATION IN WHO HAS THE ULTIMATE AUTHORITY AND ACCOUNTABILITY FOR THE DELIVERY OF CARE SAYS MADELEINE ESTABROOK A HEALTH SPECIALIST AT THE LAW FIRM EDWARDS & ANGELL IN BOSTON AS EMPLOYERS HAVE LIMITED THE TREATMENT OPTIONS COVERED BY THEIR HEALTH PLANS MORE THAN HALF OF THE NATION'S 640000 PHYSICIANS HAVE AFFILIATED WITH HEALTHMAINTENANCE ORGANIZATIONS OR HMOS THEY KEEP EXPENSES AND PREMIUMS DOWN BY REFERRING SUBSCRIBERS ONLY TO AFFILIATED PHYSICIANS WHO IN TURN ARE PAID A FLAT FEE BY THE HMO ABOUT 11 OF SUCH ORGANIZATIONS FORMALLY EMPLOY THEIR DOCTORS ACCORDING TO THE GROUP HEALTH ASSOCIATION OF AMERICA AN HMOTRADE ORGANIZATION IN THESE INSTANCES THE HMOS ARE AUTOMATICALLY LIABLE FOR EMPLOYEES' AND THEREFORE DOCTORS' NEGLIGENCE AS IN ANY OTHER TYPE OF COMPANY OTHER HMOS THAT CONTRACT WITH RATHER THAN EMPLOY DOCTORS ALSO ARE TAKING ON GREATER LIABILITY INCREASINGLY DOCTORS' HMO CONTRACTS STATE THAT THE HMO WILL PAY LEGAL COSTS AND DAMAGES IF AFFILIATED DOCTORS ARE SUED THIS HAS BEEN ONE CHIP THAT'S BEEN USED TO TRY TO ATTRACT DOCTORS INTO HMOS SAYS JOHN ERB OF THE BENEFITSCONSULTING FIRM FOSTER HIGGINS IN ADDITION IN ABOUT TWO DOZEN STATES COURT DECISIONS HAVE FORCED HOSPITALS AND HEALTH PLANS TO SHOULDER MORE LIABILITY FOR MALPRACTICE COMMITTED BY DOCTORS EVEN IF THE DOCTORS ARE NOT EMPLOYEES AND DON'T HAVE CONTRACTS THAT SPECIFY WHO PAYS A 1991 MICHIGAN CASE DRAMATICALLY EXPANDED THE LIABILITY OF HEALTHMAINTENANCE ORGANIZATIONS FOR DOCTORS' MALPRACTICE THE RULING CAME IN THE CASE OF A YOUNG BOY WHOSE ARM WAS AMPUTATED AFTER TWO DOCTORS ALLEGEDLY WERE TOO SLOW IN DIAGNOSING HIS CANCER JUDGE GENE SCHNELZ RULED THAT HMOS CAN BE HELD RESPONSIBLE FOR DOCTORS' NEGLIGENCE WHEN PATIENTS BELIEVE THEIR DOCTORS ARE ACTING AS AGENTS OF THE HMO AND THE HMO HAS ADVERTISED THAT FACT EVEN IF THE DOCTORS AREN'T EMPLOYED BY THE ORGANIZATION IN THE INTEREST OF ENCOURAGING HIGH STANDARDS OF HEALTH CARE IT BEHOOVES THE COURTS TO HOLD HMOS LIABLE FOR THE CONDUCT OF THEIR PARTICIPATING PHYSICIANS THE JUDGE WROTE OTHERWISE HMOS WOULD HAVE NO SUCH INCENTIVE AND MIGHT BE DRIVEN BY ECONOMICS TO RETAIN PHYSICIANS WITH THE LEAST DESIRABLE CREDENTIALS FOR THE LOWEST PRICE OTHER CASES ALSO HAVE RAISED THE STAKES FOR INSURERS HEALTH PLANS AND HOSPITALS IN MALPRACTICE SUITS AN IMPORTANT 1990 RULING BY A CALIFORNIA APPEALS COURT SAID AN INSURER MAY BE LIABLE FOR PATIENT INJURIES THAT RESULT FROM THE INSURER'S DECISION NOT TO PAY FOR A PARTICULAR TREATMENT THE CASE WILSON VS BLUE CROSS HELD THAT PAYMENT DECISIONS BY INSURERS ARE PART OF A PATIENT'S OVERALL TREATMENT AND NOT JUST A COVERAGE ISSUE UNDER CURRENT LAW DOCTORS CAN STILL BE NAMED AS CODEFENDANTS WITH THE BIGGER ORGANIZATIONS WHICH WOULDN'T BE POSSIBLE UNDER A FORMALIZED ENTERPRISELIABILITY SYSTEM BUT AS A PRACTICAL MATTER LAWYERS SAY HEALTH PLANS AND HOSPITALS WITH THEIR MUCH GREATER RESOURCES END UP BEARING THE BRUNT OF LEGAL COSTS AND DAMAGES IN MALPRACTICE CASES IN WHICH DOCTORS ARE ALSO NAMED LAWYERS FOR BIG HEALTH PLANS WORRY THAT SADDLING SUCH ORGANIZATIONS WITH LIABILITY WILL MAKE IT HARDER FOR DEFENDANTS TO WIN MALPRACTICE CASES WHEREAS JURIES MIGHT BE RELUCTANT TO RULE AGAINST INDIVIDUAL PHYSICIANS YOU'RE GOING TO HAVE A LOT OF LITIGATION AIMED AT HEALTH PLANS THAT ARE VIEWED AS HAVING DEEP POCKETS SAYS JOEL L MICHAELS A WASHINGTON HEALTHLAW SPECIALIST THE CHANGE IS ALSO LIKELY TO INTENSIFY THE LEVEL OF SUPERVISION HMOS INSURERS AND HOSPITALS ALREADY ARE EXERTING OVER DOCTORS' CARE FOR THAT REASON MANY PHYSICIANS EAGER TO PROTECT THEIR AUTOMONY HAD OPPOSED THE IDEA OF ENTERPRISE LIABILITY WHEN IT WAS FLOATED BY PRESIDENT CLINTON'S HEALTHCARE TASK FORCE ALTHOUGH THE PRESIDENT ISN'T PROPOSING THAT ENTERPRISE LIABILITY BE ADOPTED NATIONALLY THE DRAFT OF HIS PLAN CALLS FOR ENCOURAGING STATES TO EXPERIMENT WITH IT BUT WHETHER OR NOT THE IDEA IS EVER ADOPTED LEGISLATIVELY THE HANDWRITING IS ON THE WALL SAYS WAYNE SINCLAIR GENERAL COUNSEL FOR MMI COMPANIES INC A HOSPITAL INSURER THE CLINTON PEOPLE WERE PROBABLY JUST A LITTLE AHEAD OF THE CURVE BAKER & MCKENZIE ONE OF THE LARGEST AND HIGHESTGROSSING LAW FIRMS SAID IT WILL CLOSE ITS 38LAWYER LOS ANGELES OFFICE THE MOVE CAME AFTER THE OFFICE WHICH OPENED IN 1988 STUMBLED BADLY IN THE WAKE OF A DOWNTURN IN THE SOUTHERN CALIFORNIA REALESTATE MARKET AND A SLOWDOWN IN JAPANESE INVESTMENT IN THE AREA A PARTNER IN THE LOS ANGELES OFFICE SAID THE FIRM HAD HAD HIGH HOPES TO REPRESENT LOCAL DEVELOPERS AND JAPANESE INVESTORS BUT THEY DIDN'T MATERIALIZE CURRENT AND FORMER MEMBERS OF THE 1700LAWYER FIRM SAID THE LOS ANGELES OFFICE'S FAILURE IS ALSO THE LEGACY OF BAKER'S RAPID FRANCHISESTYLE GROWTH DURING THE 1980S INSTEAD OF MOVING OUTWARD FROM ITS CHICAGO BASE IN AMOEBALIKE FASHION ABSORBING NEW LAWYERS SLOWLY OR PLANTING SEEDS IN NEW CITIES WITH LONGTIME PARTNERS OF THE FIRM BAKER BILLED ITSELF A THE GLOBAL LAW FIRM AND EXPANDED WORLDWIDE BY GOBBLING UP EXISTING LAW PRACTICES BAKER'S LOS ANGELES OFFICE WAS FORMED OUT OF THE 55MEMBER LOS ANGELES FIRM MACDONALD HALSTED & LAYBOURNE BUT EVEN THOUGH THEIR LETTERHEAD AND BUSINESS CARDS CHANGED THESE LAWYERS WERE NEVER WELL INTEGRATED WITH BAKER'S WORLDWIDE LEADERSHIP ACCORDING TO CURRENT AND FORMER LAWYERS AT THE FIRM IN A TERSE NEWS RELEASE BAKER SAID THE ACQUISITION OF THE LOS ANGELES FIRM HAS NOT WORKED OUT TO THE MUTUAL SATISFACTION OF THE PARTIES THE DECISION TO CLOSE THE OFFICE CAME AFTER A VOTE BY THE PARTNERSHIP EARLIER THIS WEEK AT THE FIRM'S ANNUAL MEETING IN BERLIN ACCORDING TO A LOS ANGELES PARTNER ABOUT 85 OF BAKER'S 500 PARTNERS VOTED TO CLOSE THE OFFICE ADOPTING A PREVIOUS RECOMMENDATION OF THE FIRM'S EXECUTIVE COMMITTEE JOHN MCGUIGAN CHAIRMAN OF THE EXECUTIVE COMMITTEE REMAINED IN BERLIN ALONG WITH MOST OF THE FIRM'S PARTNERS ON FRIDAY AND WAS UNAVAILABLE FOR COMMENT A SPOKESWOMAN SAID PARTNERS IN THE FIRM'S MORE SUCCESSFUL OFFICES WERE UNHAPPY AT BEING REPEATEDLY ASKED TO FOOT THE BILL FOR LOS ANGELES BAKER LAWYERS SAID ACCORDING TO A LOS ANGELES PARTNER THE OFFICE'S YEARLY REVENUE PLUNGED AS LOW AS 12 MILLION THIS YEAR DOWN FROM A HIGH OF 20 MILLION IN 1988 IN ADDITION THE OFFICE WAS HOBBLED BY A 25 MILLION LEASE ON SIX FLOORS OF PRIME HIGHRISE OFFICE SPACE IN DOWNTOWN LOS ANGELES ALTHOUGH THE BAKER SPOKESWOMAN SAID NO DATE HAD BEEN SET TO CLOSE THE OFFICE A PARTNER SAID HE EXPECTED IT TO WIND DOWN IN ABOUT 90 DAYS INVESTORS CAN'T SUE COMPANIES FOR MISREPRESENTATIONS IN A PROSPECTUS IF THE DOCUMENT ALSO INCLUDES SUFFICIENT CAUTIONARY STATEMENTS A FEDERAL APPEALS COURT SAID THE RULING CAME IN A CASE BROUGHT BY BONDHOLDERS AGAINST DONALD TRUMP AND HIS TAJ MAHAL CASINO THE APPEALS COURT IN PHILADELPHIA UPHELD A LOWERCOURT DECISION DISMISSING THE BONDHOLDERS' CLAIMS THAT MR TRUMP MISLED THEM ABOUT THE CASINO'S PROSPECTS THE APPELLATE PANEL SAID WE THINK IT CLEAR THAT THE ACCOMPANYING WARNINGS AND CAUTIONARY LANGUAGE SERVED TO NEGATE ANY POTENTIALLY MISLEADING EFFECT OF POSITIVE STATEMENTS ABOUT THE INVESTMENT THE COURT'S DECISION IS IN LINE WITH RULINGS BY OTHER FEDERAL APPEALS COURTS BUT SOME ATTORNEYS IN THE CASE SAID THE PHILADELPHIA DECISION GOES FURTHER IN DIRECTLY ADOPTING WHAT HAS BECOME KNOWN AS THE BESPEAKS CAUTION DOCTRINE THIS CASE CEMENTS THE RULE THAT PROSPECTUSES THAT CLEARLY SET FORTH INVESTMENT RISKS CAN'T BE SECONDGUESSED SAID STUART J BASKIN OF NEW YORK FIRM SHEARMAN & STERLING WHO REPRESENTED MERRILL LYNCH & CO UNDERWRITER OF THE BONDS SHEIK OMAR ABDEL RAHMAN THE BLIND CLERIC WHO HAS BEEN CHARGED WITH 14 OTHERS OF CONSPIRING TO UNLEASH A WAR OF URBAN TERRORISM TOLD A FEDERAL JUDGE THAT HE WANTS WILLIAM M KUNSTLER TO REPRESENT HIM IN THE CASE EVEN THOUGH MR KUNSTLER ALREADY REPRESENTS TWO OTHER DEFENDANTS THE PROSECUTION OPPOSES THE MOVE ACCORDING TO A GOVERNMENT BRIEF MR KUNSTLER'S REPRESENTATION OF MULTIPLE DEFENDANTS PROMISES TO CREATE SEVERE COMPLICATIONS BECAUSE OF POTENTIAL CONFLICTS OF INTEREST AMONG CODEFENDANTS THE BRIEF RAISES THE POSSIBILITY THAT PROSECUTORS MAY ASK THAT BOTH MR KUNSTLER AND HIS PARTNER RONALD L KUBY BE DISQUALIFIED FROM REPRESENTING ANY OF THE DEFENDANTS US DISTRICT JUDGE MICHAEL B MUKASEY IN MANHATTAN GAVE MR KUNSTLER UNTIL OCT 29 TO DRAFT HIS RESPONSE THE JUDGE INSTRUCTED THE GOVERNMENT TO DECIDE BEFORE THEN IF IT WILL MOVE TO DISQUALIFY MR KUNSTLER FROM ANY ROLE IN THE CASE THE CASE AGAINST THE SHEIK AND HIS ALLEGED COCONSPIRATORS EXPECTED TO GO TO TRIAL NEXT YEAR IS SEPARATE FROM THE ONGOING TRIAL OF FOUR DEFENDANTS CHARGED IN CONNECTION WITH THE FEBRUARY BOMBING OF THE WORLD TRADE CENTER AMY STEVENS AND WADE LAMBERT CONTRIBUTED TO THIS ARTICLE 9310180157 931018 INTERNATIONAL FINNISH INFLATION RATE HELSINKI FINLAND FINLAND'S YEARONYEAR INFLATION RATE IN SEPTEMBER WAS 18 THE LOWEST IN 24 YEARS THE CENTRAL STATISTICAL OFFICE SAID THE RATE IS DOWN FROM THE 26 PACE IN SEPTEMBER 1992 A DROP IN THE COST OF HOUSING KEPT INFLATION DOWN THE AGENCY SAID WITHOUT LOWER INTEREST RATES FOR HOUSING LOANS AND FOR CONSUMPTION CREDITS INFLATION WOULD HAVE BEEN 29 THE AGENCY SAID 9310180156 931018 INTERNATIONAL WASHINGTON INSIGHT CLINTON'S BID FOR JOBS SUMMIT IS PUSHED ASIDE DESPITE BENEFITS IT MIGHT PRODUCE BY TIM CARRINGTON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S PITCH FOR A GROUP OF SEVEN JOBS SUMMIT HAS BEEN CROWDED OUT OF AN AUTUMN FILLED WITH CONGRESSIONAL STRUGGLES AT HOME AND POLICY PROBLEMS ABROAD THE IDEA OF A HIGHLEVEL CAUCUS ON JOBS ENTHUSIASTICALLY PROPOSED AT THE TOKYO SUMMIT IN JULY HAS EVEN BEGUN TO GET DISPARAGED AS A USELESS TALKFEST THAT WOULD HOLD LITTLE PROSPECT OF GENERATING A SINGLE JOB BUT THE PLAN SHOULDN'T GET BUMPED OFF THE AGENDA IT WOULD ADDRESS A CRITICAL PROBLEM THE G7 CLUB OF RICH INDUSTRIAL NATIONS IS GETTING LESS RICH AND LESS INDUSTRIAL THE G7 STATES WILL BE LAGGING NOT LEADING THE WORLD IN ECONOMIC GROWTH OVER THE NEXT FEW YEARS MAYBE EVEN FOR THE REMAINDER OF THE DECADE THAT MEANS THE G7'S ABILITY TO CREATE JOBS AND IMPROVE WAGES WILL DETERIORATE FURTHER THERE'S MORE FOR THE G7 LEADERS TO DO THAN FORM A DREARY SUPPORT GROUP TO BEMOAN THE PROBLEMS OF SLOW OR NONEXISTENT JOB GROWTH THE MOST CRUCIAL REASON FOR A SUMMIT IS THAT THE AILMENT OF JOBLESSNESS IS OFTEN THE PRECURSOR TO THE MORE PERILOUS VIRUS OF PROTECTIONISM TALKING ABOUT LABOR PROBLEMS IN AN INTERNATIONAL FORUM IS A GOOD WAY TO CURB THE INCLINATIONS OF NATIONS TO BROOD ABOUT THESE DIFFICULTIES ALONE AND TO FASHION TRADE BARRIERS AS A WAY TO RESOLVE THEM A LARGE SEGMENT OF THE US WORK FORCE THINKS THE SUREST WAY TO ACHIEVE JOB SECURITY IS TO THROTTLE THE NORTH AMERICAN FREE TRADE AGREEMENT LIKEWISE FARMERS IN FRANCE HOPE TO SOLVE THEIR ECONOMIC PROBLEMS BY SABOTAGING THE GLOBALTRADE DEAL BEING HAMMERED OUT UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE NO JOBS SUMMIT WILL ELIMINATE THESE ANTITRADE MOVEMENTS BUT ONE COULD SERVE AS A REMINDER THAT NO NATION IS UNIQUELY AFFLICTED BY THE PRESSURES OF TECHNOLOGY AND WORLD COMPETITION THE CURRENT ECONOMIC DIFFICULTY IS A SHARED PROBLEM BUT IT SHOWS UP IN DIFFERENT WAYS SAYS LAWRENCE KATZ CHIEF ECONOMIST FOR THE US LABOR DEPARTMENT AND A PROPONENT OF A JOBS SUMMIT EUROPE HARBORS A VIRTUAL NATION OF UNEMPLOYED PEOPLE 18 MILLION AT LAST COUNT AND RISING FAST JOBLESS RATES IN FRANCE ARE HEADING TOWARD 12 AND HAVE PASSED 22 IN SPAIN BY COMPARISON THE US WITH 67 UNEMPLOYMENT LOOKS TO BE RUNNING A WORLDCLASS JOBCREATING MACHINE BUT THE STRAINS SHOW UP IN US WORKERS' PAYCHECKS UNLIKE THEIR EUROPEAN OR JAPANESE COUNTERPARTS US WORKERS HAVE SEEN THEIR REAL INCOMES DECLINE IN THE PAST 15 YEARS AND MILLIONS FACE THE THREAT OF FINANCIAL DEVASTATION BECAUSE THEY LACK HEALTH INSURANCE JAPAN ONCE IMMUNE FROM THE LABOR DIFFICULTIES PINCHING ITS G7 PARTNERS IS DUE FOR A SHAKEOUT OF ITS OWN SOME ECONOMISTS THERE ESTIMATE THAT 40 OF JAPANESE COMPANIES ARE OVERSTAFFED AND WILL BE FORCED TO LAY OFF WORKERS THROUGHOUT THE G7 ECONOMIES THE RAMPAGE OF RESTRUCTURING CONTINUES CORPORATIONS ARE DOWNSIZING MANUFACTURING IS GOING THROUGH WHAT AGRICULTURE EXPERIENCED IN THE 1950S IT'S ABSORBING TECHNOLOGICAL CHANGES THAT REDUCE THE NUMBER OF WORKERS NEEDED TO PRODUCE MORE MEANWHILE THE DEFENSE SECTOR CONTINUES TO SHRINK MORGAN STANLEY CO ESTIMATES THAT EVEN THOUGH US COMPANIES HAVE LAID OFF 500000 WORKERS FROM THE ARMS SECTOR AN ADDITIONAL 18 MILLION WILL GO IN THE NEXT THREE YEARS IN THE FACE OF SUCH RELENTLESS PRESSURES AN EXCHANGE OF INFORMATION MIGHT HELP G7 NATIONS THE US CAN SHOW THE BENEFITS OF A FLEXIBLE LABOR MARKET IN WHICH WORKERS MOVE FROM ONE INDUSTRY TO ANOTHER OR ONE REGION TO ANOTHER TO FIND WORK IN RETURN THE US HAS SOMETHING TO LEARN FROM EUROPEAN AND JAPANESE EFFORTS TO EDUCATE AND TRAIN WORKERS FOR EXAMPLE A FAR HIGHER PORTION OF GERMAN WORKERS THAN AMERICANS RECEIVE TRAINING FROM THEIR EMPLOYERS SUCH INVESTMENT WILL BE INCREASINGLY CRITICAL IN A GLOBAL ECONOMY WHERE THE DEVELOPING WORLD PROVIDES THE LOWSKILLED WORKERS AND THE DEVELOPED STATES PRODUCE MORESOPHISTICATED GOODS AND SERVICES SOME G7 MEMBERS SUPPORT THE IDEA OF A JOBS SUMMIT EVEN THOUGH THEY AREN'T SURE WHAT COULD COME OUT OF IT IT WOULD BE FOOLISH TO EXPECT THAT THESE GUYS WOULD GET AROUND A TABLE AND COME UP WITH A MAGIC BULLET SAYS ONE EUROPEAN DIPLOMAT HERE BUT HE ADDS THE SUMMIT IS WORTH SCHEDULING SOON SIMPLY AS AN ANTIDOTE TO GROWING PROTECTIONIST SENTIMENTS 9310180155 931018 TECHNOLOGY ANTITRUST PROBE OF HOSPITALBED MARKET PUTS HILLENBRAND UNIT UNDER SCRUTINY BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL THE JUSTICE DEPARTMENT SAID ITS ANTITRUST DIVISION IS INVESTIGATING THE HOSPITALBED INDUSTRY WHICH HAS LONG BEEN DOMINATED BY THE HILLROM UNIT OF HILLENBRAND INDUSTRIES INC THE ANTITRUST PROBE IS THE LATEST SIGN OF FEDERAL REGULATORS' GROWING INTEREST IN THE HEALTHCARE SECTOR IT ALSO IS LIKELY TO MEAN INTENSE SCRUTINY OF HILLROM A BATESVILLE IND COMPANY THAT IS WIDELY ADMIRED ON WALL STREET BUT FREQUENTLY DEPICTED BY RIVALS AS AN OVERLY POWERFUL BULLY HILLROM CONFIRMED THAT IT WAS THE SUBJECT OF AN ANTITRUST INQUIRY SAYING IT WAS COOPERATING FULLY HILLROM'S PRESIDENT WILLIAM KELLEY ADDED WE'VE HAD SIMILAR INQUIRIES BEFORE WE'VE NEVER BEEN FOUND TO BE IN VIOLATION OF ANY ANTITRUST LAW OR STATUTE AND WE BELIEVE THAT WILL AGAIN BE THE RESULT OF THIS INQUIRY IN A STATEMENT HILLROM ACKNOWLEDGED THAT IT HAS AN IMPORTANT POSITION IN THE HOSPITALBED MARKET TWO YEARS AGO THE TRADE PUBLICATION IN VIVO ESTIMATED THAT HILLROM ACCOUNTED FOR 95 OF THE SALES OF PATIENTROOM BEDS IN THE US 85 OF THE SALES OF HOSPITAL HEADWALL UNITS AND 52 OF THE RENTALS OF SPECIALTY BEDS HILLROM DOESN'T CONFIRM OR DENY THOSE ESTIMATES HILLROM HAS BEEN ESPECIALLY STRONG IN THE TOP END OF THE HOSPITALBED MARKET WHERE SOPHISTICATED MODELS SELL FOR MORE THAN 10000 APIECE COMPETITORS SUCH AS THE AMEDCO UNIT OF EVEREST & JENNINGS CO HAVE INDIRECTLY JABBED AT HILLROM'S HIGH PRICES IN TRADEMAGAZINE ADVERTISEMENTS BUT THEY HAVEN'T MADE MAJOR INROADS WITH CHEAPER MODELS BY ITSELF MARKET DOMINANCE ISN'T REGARDED AS AN ANTITRUST VIOLATION HILLROM OFFICIALS CREDIT THEIR BIG MARKET SHARE TO BUSINESS SAVVY HILLROM'S SUCCESS IN THE MARKETS WE SERVE IS DUE TO THE REPUTATION WE'VE BUILT FOR SATISFYING OUR CUSTOMERS' NEEDS WITH COSTEFFECTIVE SUPERIOR QUALITY PRODUCTS MR KELLEY SAID BUT SOME COMPETITORS SAY THEY BELIEVE HILLROM HAS INCREASED ITS GRIP ON THE MARKET WITH ANTICOMPETITIVE BEHAVIOR WITHIN THE PAST FEW MONTHS THESE COMPETITORS SAY THE JUSTICE DEPARTMENT'S CHICAGO OFFICE HAS BEGUN ASKING THEM FOR ANY CORROBORATING DOCUMENTATION CONCERNING HILLROM'S ACTIVITIES ONE COMPETITOR HOSPITAL SYSTEMS INC WAS RECENTLY ASKED BY THE JUSTICE DEPARTMENT TO PROVIDE INFORMATION ON CONTRACTS FOR WHICH IT COMPETED WITH HILLROM THE DEPARTMENT'S INFORMATIONSEEKING LETTER OBTAINED BY THE WALL STREET JOURNAL ALSO ASKED FOR ANY INFORMATION ABOUT HILLROM'S ACTIVITIES TO INFLUENCE HOSPITAL ADMINISTRATORS PURCHASING AGENTS DESIGN CONSULTANTS AND ARCHITECTS IRVING QUAM A VICE PRESIDENT AT HOSPITAL SYSTEMS SAYS HE IS PERPLEXED THAT A UTAH HOSPITAL CHOSE HILLROM'S PRODUCTS OVER HIS COMPANY'S EVEN THOUGH HE SAYS HIS EQUIPMENT WAS SOME 30 CHEAPER OTHER COMPETITORS CONTEND THAT HILLROM HAS MADE IT DIFFICULT FOR THEM TO BUY USED BED FRAMES THAT COULD BE REFURBISHED OR HAS OFFERED DISCOUNTS ON ITS HOSPITAL BEDS IF CUSTOMERS AGREE TO BUY OTHER HILLROM EQUIPMENT FOR AS LONG AS FIVE YEARS THESE COMPETITORS SAY THEY HAVE BROUGHT THEIR CONCERNS TO THE JUSTICE DEPARTMENT TOO HILLROM SAID SUCH ANTITRUST INQUIRIES ARE PROBABLY INITIATED BY THE COMPETITIVE ENVIRONMENT IN WHICH WE OPERATE IN A RECENT REPORT GLENN REICIN AN ANALYST AT OPPENHEIMER & CO OBSERVED THAT A NEW RIVAL STRYKER CORP IS TRYING TO ENTER THE HOSPITALBED MARKET AND MAY BE FINDING IT TOUGHER THAN EXPECTED HILLROM'S FINANCIAL RESULTS AREN'T PUBLICLY AVAILABLE BUT ANALYSTS WHO FOLLOW ITS PARENT HILLENBRAND ESTIMATE THAT HILLROM EARNED AT LEAST 80 MILLION LAST YEAR BEFORE INTEREST AND TAXES ON SALES OF ABOUT 360 MILLION THE COMPANY DOESN'T DISPUTE THOSE FIGURES THAT WOULD MAKE HILLROM THE SECOND MOST IMPORTANT UNIT OF HILLENBRAND BEHIND THE CASKET DIVISION THE JUSTICE DEPARTMENT WOULDN'T COMMENT ON HOW LONG ITS INVESTIGATION MIGHT RUN GENERALLY SUCH PROBES CAN RUN SEVERAL YEARS 9310180154 931018 INTERNATIONAL DANISH VEHICLE REGISTRATIONS COPENHAGEN DANISH NEWVEHICLE REGISTRATIONS FELL 65 IN SEPTEMBER TO 8541 UNITS FROM 9137 UNITS IN SEPTEMBER 1992 THE NATIONAL STATISTICS AGENCY SAID 9310180153 931018 WHO'S NEWS MYERS INDUSTRIES INC MYERS INDUSTRIES INC AKRON OHIO LOUIS S MYERS CHAIRMAN AND COFOUNDER OF THIS MAKER OF PLASTIC AND METAL PRODUCTS AND WHOLESALE DISTRIBUTOR OF TIRE REPAIR AND SERVICE PRODUCTS DIED LAST THURSDAY FOLLOWING A BRIEF ILLNESS HE WAS 80 YEARS OLD A COMPANY SPOKESMAN SAID IT ISN'T IMMEDIATELY KNOWN WHEN A SUCCESSOR TO MR MYERS WILL BE NAMED 9310180152 931018 FOREIGN EXCHANGE PLAYERS SWITCH THEIR TACTICS AS PRESSURE GROWS ON THE ERM'S WEAKER CURRENCIES BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK AS PRESSURE MOUNTS AGAINST THE WEAKER CURRENCIES OF EUROPE'S EXCHANGE RATE MECHANISM CURRENCY PLAYERS SAY THAT THIS ROUND OF ERM BRINKSMANSHIP LOOKS A BIT DIFFERENT FROM PREVIOUS BATTLES THE CORE ISSUE REMAINS THE SAME COUNTRIES THAT NEED TO LOWER INTEREST RATES TO STIMULATE THEIR OWN ECONOMIES ARE HOLDING OFF IN ORDER TO DEFEND THEIR CURRENCIES' VALUE AGAINST THE GERMAN MARK MARKET PLAYERS ARE TESTING THOSE GOVERNMENTS' RESOLVE BY SELLING THE CURRENCIES THIS TIME THE FRENCH AND BELGIAN FRANCS BUT WIDER ERM BANDS WHICH ALLOW CURRENCIES TO FLUCTUATE AS MUCH AS 15 ON EITHER SIDE OF THEIR CENTRAL RATES COMBINED WITH MORE THAN A YEAR'S EXPERIENCE WITH ERM TURMOIL HAVE CHANGED SOME PLAYERS' TACTICS BETTING AGAINST A WEAK ERM CURRENCY NOW RESEMBLES TRADES ON ANY CURRENCY THAT IS VULNERABLE FOR ECONOMIC OR TECHNICAL REASONS TRADERS SAY IT'S NOT AS AGGRESSIVE AS IT WAS IN THE PAST SAYS KEITH HAZLEY CHIEF TRADER AT GAIACORP IRELAND LTD A CURRENCYMANAGEMENT COMPANY ONE REASON MARKET PLAYERS CAN'T FORCE SEISMIC OVERNIGHT PRICE CHANGES AS THEY DID BY FORCING CURRENCIES OUT OF THE ERM OR FORCING THE ERM ITSELF TO ACCOMMODATE WIDER MOVES PEOPLE DON'T EXPECT A BIG GAP WHERE WE CLOSE AT ONE LEVEL FRIDAY NIGHT THEN OPEN 2 TO 3 HIGHER MONDAY MORNING SAYS DOMINIQUE LECA OPTIONS MANAGER AT PARIBAS CAPITAL MARKETS GROUP INSTEAD DEALERS ARE USING THE KIND OF TECHNICAL TACTICS THEY USE ROUTINELY IN CURRENCY TRADING THEY'RE FOCUSING FOR EXAMPLE ON WHETHER THE MARK RISES THROUGH 355 FRANCS AND BETTING THAT THE NEXT LEVEL TO AIM FOR WILL BE 360 FRANCS THE NEXT PSYCHOLOGICALLY IMPORTANT LEVEL LATE FRIDAY IN NEW YORK THE MARK TRADED AT 35423 FRENCH FRANCS UP FROM 35398 FRANCS THURSDAY THE MARK TRADED AT 21965 BELGIAN FRANCS LATE FRIDAY IN FRANKFURT COMPARED WITH 21972 FRANCS LATE THURSDAY IN NEW YORK THE DOLLAR TRADED FRIDAY AT 16185 MARKS AND 10715 YEN COMPARED WITH 16125 MARKS AND 10735 YEN THURSDAY ABOUT NOON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10715 YEN AND AT 16265 MARKS DEALERS ALSO ARE FALLING BACK ON THE PROGRAMDRIVEN TRADING STRATEGIES THAT PROVED USELESS IN PREVIOUS ERM CRISES ANALYTICAL PROGRAMS CRUNCH SUCH FACTORS AS EXCHANGE RATES INTEREST RATES AND PRICE TRENDS NONE OF WHICH CAN FORETELL A POLITICAL DECISION TO DEVALUE OR SUSPEND A CURRENCY THE ENVIRONMENT NOW IS BETTER FOR SYSTEMATIC TRADING AND WILL CONTINUE TO IMPROVE SAYS GAIACORP'S MR HAZLEY MARKET PLAYERS SHOULDN'T WRITE OFF THE ERM SAYS ANDREW HODGE VICE PRESIDENT FOREIGN EXCHANGE AT BANK BRUSSELS LAMBERT ALL OF THE CENTRAL BANKS ARE TRYING TO DEFEND SOME LEVELS FURTHER OUT IT'S JUST MORE FLEXIBLE THAN IT USED TO BE SPECULATORS ALSO ARE CAUTIOUS ABOUT TAKING MASSIVE POSITIONS IN SOME OF THE LESSERTRADED CURRENCIES BECAUSE OF LIQUIDITY CONCERNS SAYS MR HAZLEY IF THE CENTRAL BANKS ARE THERE THERE'S A PROVISION OF LIQUIDITY IF THEY'RE NOT THERE YOU'RE TAKING A PRETTY BIG RISK SHOULD THE MARKET START TO TRADE ON ITS OWN SAYS MR HAZLEY IF THERE IS A CORRECTION IT COULD BE PRETTY SEVERE CORPORATIONS ALSO HAVE BECOME MORE CAUTIOUS IN DEALING WITH ERM CURRENCIES SINCE THE ERM BEGAN TO UNRAVEL LAST YEAR THEY'VE BECOME MORE ADEPT AT ANTICIPATING CURRENCY WEAKNESS SAYS CONNIE SILVESTER VICE PRESIDENT CORPORATE FOREIGNEXCHANGE TRADING AT ABN AMRO BANK NV IN CHICAGO PEOPLE ARE DOING SINGLECURRENCY HEDGING AND CROSSHEDGING AS THEY HAVE NEVER DONE BEFORE SHE SAYS ADDING THAT SOME LARGE CORPORATIONS HAVE LONG SINCE HEDGED THEIR EXPOSURE TO THE FRENCH AND BELGIAN FRANCS THIS WEEK MARKET PLAYERS WILL FOCUS ON THE BANK OF FRANCE'S INTERVENTION RATE WHICH WILL SIGNAL ITS RESOLVE TO DEFEND THE CURRENCY AND ON BELGIUM'S FISCAL PACKAGE DUE TUESDAY 9310180151 931018 SETTLING ACCOUNTS IN RUSSIAN PROVINCES YELTSIN'S SUPPORTERS STIFLE THE OPPOSITION DEMOCRATS' TURN THE TABLES ON COMMUNIST DIEHARDS WHO PIN HOPES ON VOTERS THE BATTLE FOR TAMBOV LIFE' BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL TAMBOV RUSSIA WITH BORIS YELTSIN FINALLY IN CONTROL IN MOSCOW IGOR FILATIEV BELIEVES IT IS TIME FOR DEMOCRACY TO SHOW SOME VISIBLE RESULTS FIRST THE TAMBOV GOVERNMENT'S CHIEF STRATEGIST SAYS WITH A BURST OF EXCITEMENT WE'RE GOING TO TAKE OVER THE NEWSPAPERS NEXT WE WANT TO DISSOLVE THE LOCAL LEGISLATURES IT'S A SCENE THAT IS PLAYING ITSELF OUT IN NEARLY EVERY ONE OF RUSSIA'S 88 PROVINCES AND REPUBLICS NOW THAT MR YELTSIN HAS BROKEN THE DEADLOCK IN MOSCOW HIS POLITICAL APPOINTEES AROUND THE COUNTRY ARE SETTLING SCORES WITH THE OPPOSITION AND ALTHOUGH THEY ARE KNOWN IN RUSSIAN POLITICAL LEXICON AS DEMOCRATS MR YELTSIN'S SUPPORTERS ARE TAKING STEPS THAT BEAR LITTLE RESEMBLANCE TO ANY WESTERN NOTION OF DEMOCRATIC BEHAVIOR TAMBOV PROVINCE HAS BECOME A TOPSYTURVY POLITICAL WORLD WHERE COMMUNISTS ACCUSE DEMOCRATS OF BOLSHEVIK BEHAVIOR AND WHERE NOTHING FITS INTO NEAT CATEGORIES OF RIGHT AND WRONG CONSIDER THE SCENE AT THE OFFICES OF TAMBOV LIFE A CENTRAL TARGET IN THE LOCAL POWER STRUGGLE AT FIRST GLANCE THE NEWSPAPER DOESN'T APPEAR TO BE MUCH OF A PRIZE ITS QUIET OFFICES ARE STAFFED BY MOSTLY PASSIVE JOURNALISTS WHO RELY ON REAMS OF COPY FROM THE OFFICIAL ITARTASS NEWS AGENCY TO FILL THEIR NEWS HOLES THE NEWSPAPER'S FOUR PAGES HAVE A SMUDGED QUALITY AND ITS PHOTOGRAPHS ARE OFTEN INDECIPHERABLE BUT TAMBOV LIFE'S CIRCULATION OF 30000 WHILE MODEST BY WORLD STANDARDS IS TOPS IN THE PROVINCE AND INCLUDES MOST LOCAL DECISION MAKERS EDITOR VLADIMIR BIRYUKOV IS STRUGGLING TO KEEP THE PAPER ALIVE AGAINST GOVERNMENT PRESSURE A FEW DAYS AGO TAMBOV'S GOVERNOR CALLED HIM IN FOR AN EMERGENCY MEETING AND THREATENED TO SHUT THE PAPER DOWN ALLEGEDLY FOR INCITING VIOLENCE DURING THE CRISIS IN MOSCOW IN FACT THE PAPER DID NO SUCH THING IT DID RUN ARTICLES BY TWO YELTSIN FOES RUSLAN KHASBULATOV AND ALEXANDER RUTSKOI BUT THEY APPEARED ALONGSIDE DECREES BY MR YELTSIN IN TRUTH THE PAPER HAS BEEN ONE OF THE FEW BALANCED VOICES IN THE COUNTRY BUT ONE OF ITS FOUNDERS IS THE PROVINCIAL SOVIET OR LEGISLATURE AGAINST WHICH THE LOCAL ADMINISTRATION HAS DECLARED WAR THE GOVERNMENT WANTS THE PAPER AND THE ENTIRE LOCAL MEDIA UNDER ITS THUMB OR IF THAT ISN'T POSSIBLE SIMPLY CLOSED THIS IS POLITICAL SABOTAGE TO GET CONTROL OF THE PAPER SAYS MR BIRYUKOV 42 WHOSE SMILE REVEALS A MOUTH VIRTUALLY FULL OF GOLD TEETH IT'S PURE BOLSHEVISM BUT WAIT A MINUTE MR BIRYUKOV HIMSELF WAS A CAREER SOLDIER FOR THE COMMUNIST PARTY UNTIL IT WAS ABOLISHED TWO YEARS AGO DURING THE 1980S HE SERVED AS A TOP OFFICIAL IN THE IDEOLOGY DEPARTMENT OF THE PROVINCIAL PARTY COMMITTEE CHARGED WITH ENSURING THAT THE PRESS TOED THE LINE HE MOVED TO TAMBOV LIFE WHEN IT STILL WAS KNOWN BY ITS PREVIOUS NAME TAMBOV PRAVDA NOW HE IS PLAYING A NEW ROLE WITH EQUAL GUSTO CHAMPION OF PRESS FREEDOM THE SOCALLED DEMOCRATS WHOM I DON'T VIEW AS DEMOCRATS SEE THINGS THE WAY THEY WANT TO MR BIRYUKOV SAYS FOR EXAMPLE THEY CALL US PROCOMMUNIST BUT THE NEW RULING PARTY' IS BASED SIMPLY ON PERSONAL LOYALTY TO THE PRESIDENT AS THE BATTLE FOR CONTROL OF THE PRESS CONTINUES THE GOVERNMENT IS HAVING MORE LUCK BRINGING THE LOCAL LEGISLATURE TO ITS KNEES FOR MONTHS THE POWER STRUGGLE BETWEEN TAMBOV'S SOVIET AND ITS EXECUTIVE BRANCH MIRRORED THE STRUGGLE GOING ON AT THE NATIONAL LEVEL BETWEEN MR YELTSIN AND PARLIAMENT THE TAMBOV LEGISLATURE WAS OFTEN ABLE TO STYMIE EFFORTS AT REFORM SLOWING THE PRIVATIZATION OF STATE ENTERPRISES AND BLOCKING THE AMBITIONS OF WOULDBE PRIVATE FARMERS NOW THE TABLES MAY HAVE TURNED ALEXANDER RYABOV 57 THE ONCEFEARED CHAIRMAN OF TAMBOV'S LEGISLATURE GREETS A VISITOR BY HANDING OUT A BUSINESS CARD THIS MIGHT BE THE LAST TIME I EVER GIVE OUT ONE OF THESE THE DISTINGUISHED WHITEHAIRED FORMER COMMUNIST PARTY BOSS SAYS WITH A WEARY SMILE MR YELTSIN HAS AL READY DISSOLVED MANY REGIONAL LEGISLATURES AND MR RYABOV THINKS IT IS JUST A MATTER OF TIME BEFORE TAMBOV'S SOVIET IS ABOLISHED HE IS PREPARED TO GO QUIETLY THERE ARE NO LIMITS TO YELTSIN NOW MR RYABOV SAYS WHY SHOULD WE BOTHER TO KEEP CONDEMNING HIM OUR OPPOSITION WOULDN'T CHANGE A THING STILL HE IS VISIBLY SHAKEN TWO WEEKS AGO MR RYABOV HAD THE LOCAL GOVERNOR ON THE RUN HE HAD EFFECTIVELY COWED HIM THROUGH FREQUENT THREATS OF A VOTE OF NOCONFIDENCE WHICH WOULD HAVE REQUIRED A SNAP ELECTION NOW MR RYABOV SUDDENLY IS A NOBODY MR RYABOV PULLS OUT A WELLWORN COPY OF RUSSIA'S CONSTITUTION HE TAKES OUT A PENCIL AND UNDERLINES SEVERAL SECTIONS THAT DEFINE RUSSIA'S NETWORK OF REGIONAL SOVIETS AS THE PRIMARY CHANNEL THROUGH WHICH THE COUNTRY IS TO BE GOVERNED YELTSIN SWORE TO DEFEND THIS CONSTITUTION BOOMS MR RYABOV IF YELTSIN IS A DEMOCRAT THEN I'M JESUS CHRIST WHEN MR YELTSIN ON SEPT 21 DECLARED PARLIAMENT DISSOLVED THE TAMBOV SOVIET HELD AN EMERGENCY SESSION AND UNANIMOUSLY PASSED A RESOLUTION DECLARING HIS DECREE UNCONSTITUTIONAL SINCE DEFEATING PARLIAMENT MR YELTSIN HAS ORDERED SOVIETS AROUND THE COUNTRY TO RESCIND SUCH RESOLUTIONS NOT CONTENT WITH HIS VICTORY IN MOSCOW THE PRESIDENT WANTS A TOTAL ROUT WITH NO STONE LEFT UNTURNED EVEN IN LOCAL LEGISLATURES THAT ARE SOON TO BE DISSOLVED IN NO MOOD TO FIGHT AFTER TANKS RALLIED TO MR YELTSIN'S DEFENSE MOST LEGISLATURES HAVE COMPLIED INCLUDING MR RYABOV'S IN TAMBOV AS THE LOCAL SOVIET SQUIRMS THE TAMBOV GOVERNMENT SEEMS TO BE ENJOYING THE SPECTACLE THE LEGISLATURE CONTINUES TO MEET BUT HAS ALREADY BEEN STRIPPED OF ANY MEANINGFUL POWER THE EXECUTIVE BRANCH CUT THE SOVIET'S MAIN LINK TO THE CITIZENRY BY BANNING BROADCASTS OF ITS SESSIONS THEY'RE JUST ENJOYING THEIR OWN COMPANY NOW SAYS MR FILATIEV WITH A CHUCKLE NO ONE IS HAPPIER ABOUT THE TURN OF EVENTS THAN VLADIMIR BABENKO THE REGION'S GOVERNOR WITH MR YELTSIN'S VICTORY THE 61YEAROLD FORMER SURGEON ONCE THE TARGET OF SCORN IN TAMBOV HAS BEEN TRANSFORMED OVERNIGHT INTO A VAINGLORIOUS LOCAL STRONGMAN SINCE THE EVENTS WE HAVE TAKEN POWER INTO OUR OWN HANDS HE SAYS FOR THE MOMENT I AM ACTING WITHOUT REGARD TO THE SOVIETS THE EVENTS IS HOW DR BABENKO LIKE OTHERS LOYAL TO MR YELTSIN REFERS TO THE BLOODSHED IN MOSCOW IT IS A CHILLINGLY BLAND EUPHEMISM COINED IN THE CAPITAL AND SPREADING OUT QUICKLY THROUGH THE COUNTRY TO THE GOVERNMENT PERHAPS IT'S BETTER NOT TO CONSTANTLY REMIND PEOPLE OF THE KILLINGS AND VIOLENCE FOR WHICH MR YELTSIN WAS AT LEAST PARTLY RESPONSIBLE IN THE NEW ORDER EVEN THE SIMPLEST OF TASKS IN TAMBOV IS TAKING ON POLITICAL RAMIFICATIONS EARLIER THIS DAY DR BABENKO HELD A MEETING OF LOCAL OFFICIALS TO DISCUSS EMERGENCY PLANS FOR BRINGING IN THE PROVINCE'S BEET HARVEST IN THE PAST DR BABENKO SAYS HIS OPPONENTS WOULD HAVE USED A MEETING LIKE THAT TO RAIL AGAINST OFFICIAL POLICIES TURNING A WORKING SESSION INTO A VIRTUAL POLITICAL RALLY TODAY HE BOASTS NO ONE UTTERED A WORD IN HIS HASTE TO SQUASH HIS OPPONENTS HOWEVER DR BABENKO HAS OCCASIONALLY OVERPLAYED HIS HAND LAST WEEK MR YELTSIN FIRED A DECREE OUT TO THE PROVINCES CALLING FOR THE DISSOLUTION OF VARIOUS LEVELS OF RUSSIA'S NETWORK OF LOCAL SOVIETS THE TAMBOV ADMINISTRATION LEAPED ON THE DECREE AND RECRUITED THE POLICE FOR A LIGHTNING ONEDAY CAMPAIGN TO SEAL UP NEARLY EVERY LEGISLATURE IN THE PROVINCE IN 24 HOURS SOME 7000 DEPUTIES WERE SUDDENLY OUT OF WORK I DIDN'T WANT TO LET THESE GUYS HAVE TIME FOR THINKING SAYS DR BABENKO VLADIMIR PENTYUKHIN A FORMER CHAUFFEUR WHO ROSE IN THE COMMUNIST PARTY RANKS CHAIRS ONE SUCH SOVIET IN TAMBOV'S RURAL NIKIFEROVSKY DISTRICT HE CAME TO WORK A WEEK AGO TO FIND HIS OFFICE SEALED AND BLOCKED BY MILITIAMEN A FEW CALLS REVEALED THAT MR YELTSIN'S DECREE HAD BEEN AIMED AT CLOSING LOWERLEVEL SOVIETS NOT THOSE AT THE DISTRICT LEVEL THE ERROR WAS ACKNOWLEDGED AND THE NEXT DAY ADMINISTRATION OFFICIALS SHEEPISHLY REMOVED THE SEALS THE 50PERSON SOVIET WAS BACK IN BUSINESS AND MR PENTYUKHIN RESUMED HIS CRITICISM OF MR YELTSIN YELTSIN'S REFORMS HAVE LED TO THE IMPOVERISHMENT OF THE PEOPLE AND THE DESTRUCTION OF RUSSIA'S NATIONAL CULTURE SAYS MR PENTYUKHIN WHO KEEPS A PORTRAIT AND A LARGE BUST OF LENIN IN HIS OFFICE STILL HE SAYS THE DAYS OF OPEN RESISTANCE TO THE PRESIDENT ARE OVER IF ANYONE TRIES TO BLOCK YELTSIN AT THIS POINT HE SAYS WE WOULD FACE CIVIL WAR STILL IN TAMBOV AT LEAST THE PARTY MAY HAVE ITS REVENGE IN THE VERY ELECTIONS THAT MR YELTSIN IS CHAMPIONING FORMER COMMUNIST LEADERS LIKE MR RYABOV HAVE WIDESPREAD NAME RECOGNITION AND A SYSTEM OF PARTY ORGANIZATION THAT IS THE ENVY OF THE DEMOCRATS AND IN THIS LARGELY AGRARIAN PROVINCE THE FORMER PARTY BOSSES PROBABLY CAN COUNT ON THE SUPPORT OF MOST OF THE DIRECTORS OF TAMBOV'S 500 HUGE COLLECTIVE FARMS WHICH STILL DOMINATE AGRICULTURAL LIFE IN THIS PROVINCE OF 13 MILLION PEOPLE MIKHAIL SUTORMIN IS ONE SUCH DIRECTOR HIS FARM AN 8600ACRE BEHEMOTH CALLED PROGRESS RELIES ON STATE SUBSIDIES RUSSIA CAN'T DO WITHOUT COLLECTIVE FARMING FOR AT LEAST ANOTHER 15 YEARS SAYS THE EMBITTERED MR SUTORMIN THOUGH LACKING ONE ARM MR SUTORMIN TAKES A VISITOR ON A WILD AND BUMPY JEEP RIDE THROUGH THE MUDDY BLACK EARTH OF HIS COLLECTIVE TO HEAR HIM EXPLAIN IT VIRTUALLY ALL OF THE COLLECTIVE'S 250 FARMERS HATE MR YELTSIN AND HIS ECONOMIC REFORMS EVEN RUTSKOI WOULD BEAT YELTSIN HERE HE SAYS REFERRING TO MR YELTSIN'S JAILED FOE THAT PERCEPTION IS SHARED BY THE PROYELTSIN FIGURES IN TAMBOV CITY WHO ARE JUST BEGINNING TO CREATE A POLITICAL NETWORK TO BRING HOME VOTES IN THE DEC 12 ELECTIONS TO A NEW BICAMERAL NATIONAL LEGISLATURE THE COMMUNISTS JUST MIGHT WIN IN TAMBOV CONCEDES VALENTIN DAVITULIANI WHO HAS BEEN NOMINATED BY LOCAL PROYELTSIN GROUPS TO RUN FOR ONE OF ITS TWO SEATS THE SOVIETS HAVE A BUILTIN SYSTEM OF THOUSANDS OF CAMPAIGNERS IN EVERY HAMLET AND VILLAGE ACROSS THE PROVINCE LAST APRIL WHEN MR YELTSIN SURVIVED A NATIONAL VOTE OF CONFIDENCE TAMBOV CAME DOWN FIRMLY AGAINST HIM IN SOME RURAL DISTRICTS AS MANY AS 75 OF THE VOTERS SAID THEY HAD NO TRUST IN MR YELTSIN OR IN HIS POLICIES TO WIN THE PROYELTSIN FORCES NOW NEED TO ORGANIZE QUICKLY AND EFFECTIVELY BUT THERE ARE PRECIOUS FEW ACTIVE DEMOCRATS IN THE REGION ON OCT 3 AS VIOLENCE WAS BREAKING OUT IN MOSCOW THE PROYELTSIN FORCES HELD THEIR FIRST ORGANIZATIONAL MEETING FOR THE COMING CAMPAIGN THEY TALKED OF A DIRE NEED TO RAISE FUNDS AND HOPED THAT BUSINESSMEN THE BENEFICIARIES OF MR YELTSIN'S REFORMS WOULD COUGH UP SOME SUPPORT ONLY ONE PRIVATE ENTREPRENEUR STEPPED FORWARD HANDING OVER A MERE 200000 RUBLES EQUAL TO 167 WHAT THE DEMOCRATS LACK IN ORGANIZATION AND DISCIPLINE THEY MAKE UP IN MEDIA ACCESS THANKS TO MR YELTSIN THEY DOMINATE VIRTUALLY ALL OF THE LOCAL MASS MEDIA TELEVISION AND RADIO ARE STRICTLY GOVERNMENTCONTROLLED GIVING THE OPPOSITION LITTLE ACCESS TO THE REGION'S PRIMARY SOURCES OF NEWS AND INFORMATION TAKING OVER TAMBOV LIFE WOULD GIVE THE PROYELTSIN FORCES A CLEAN SWEEP YET ON A BASIC LEVEL THE GOVERNMENT HASN'T GOTTEN ITS MESSAGE ACROSS MR DAVITULIANI THE PROYELTSIN CANDIDATE WHO CURRENTLY SERVES AS THE PRESIDENT'S APPOINTED REPRESENTATIVE IN TAMBOV IS PLANNING TO DIRECT A PROPAGANDA ONSLAUGHT WE NEED TO BRAINWASH THE PEOPLE HE SAYS INDEED MOST PEOPLE HAVE LITTLE FAITH IN RUSSIA'S ECONOMIC REFORMS WHICH HAVE MEANT LITTLE TO THEM BUT RISING PRICES MR DAVITULIANI SAYS THAT WITH THE RIGHT SPIN CONTROL PEOPLE WILL APPLAUD MR YELTSIN'S POLICIES AND HIS DECISIVE ACTIONS AGAINST THE INTRANSIGENT PARLIAMENT MOST RUSSIANS FEAR THAT DEMOCRACY MEANS CHAOS HE SAYS BUT WHEN THEY REALIZE THAT YELTSIN IS CAPABLE OF SECURING ORDER WITH A STRONG HAND THEY WILL START TO BELIEVE IN DEMOCRACY 9310180150 931018 COMMODITIES OILFUTURES PRICES WEAKEN AS REPORT BY UN RAISES THE PROSPECT OF IRAQ RESUMING EXPORTS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL IRAQ'S SADDAM HUSSEIN STILL CAN SEND JITTERS THROUGH THE OIL MARKET EVEN THOUGH HIS COUNTRY HAS BEEN BANNED FROM IT FOR MORE THAN THREE YEARS ON FRIDAY A UNITED NATIONS REPORT THAT BAGHDAD MAY BE MOVING TOWARD COMPLIANCE ON A WEAPONS ISSUE RAISED THE PROSPECT THAT IRAQ COULD RESUME OIL EXPORTS SOONER THAN EXPECTED WORLD OIL PRICES PROMPTLY FELL DESPITE SKEPTICISM IN THE INDUSTRY THAT IRAQI OIL COULD FLOW INTO THE MARKET BEFORE MID1994 IN FUTURES TRADING DECEMBER CRUDE OIL DROPPED 22 CENTS TO SETTLE AT 1838 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE THAT FOLLOWED A DECLINE OF 30 CENTS A BARREL IN THE DECEMBER BRENT CRUDE CONTRACT ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE TECHNICAL TRADING MAY HAVE CONTRIBUTED TO THE DECLINES ALSO PRICES MAY HAVE BEEN DUE FOR A CORRECTION AFTER THE RUNUP SINCE LAST MONTH'S DECISION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO SET A NEW OUTPUT CEILING OF 245 MILLION BARRELS A DAY FOR SIX MONTHS TO CURB OVERPRODUCTION BUT OIL ANALYSTS GENERALLY CITED THE SUDDEN WEAKENING OF PRICES AS EVIDENCE OF THE IMPACT OF IRAQ THEY LOOK FOR A STEEPER FALL WHEN THE UN LIFTS BANS IMPOSED AGAINST IRAQ AFTER ITS 1990 INVASION OF KUWAIT CRUDE WOULD DROP 1 THE FIRST TWO TRADING SESSIONS AND THEN ANOTHER 1 THE FIRST THREE SESSIONS AFTER THAT SAID FREDERICK P LEUFFER AN OIL ANALYST WITH BEAR STERNS & CO IRAQ HAS REJECTED TERMS OF A ONETIME EMERGENCY OIL SALE PROPOSED BY THE UN BUT MR HUSSEIN THE IRAQI PRESIDENT IS TRYING TO GET ALL THE ECONOMIC SANCTIONS LIFTED AND IS SENDING HIS DEPUTY PRIME MINISTER TARIQ AZIZ TO NEW YORK NEXT MONTH IN THAT REGARD WHETHER THE UN SECURITY COUNCIL HAS COME CLOSER TO REMOVING THE OIL EMBARGO AS A RESULT OF LAST WEEK'S DEVELOPMENTS REMAINED QUESTIONABLE OVER THE WEEKEND BUT UN OFFICIALS SAID THERE HAD BEEN MOVEMENT TOWARD RESOLUTION OF THE DISPUTES OVER THE WEAPONS ISSUE ROLF EKEUS HEAD OF THE COMMISSION OVERSEEING THE ELIMINATION OF IRAQ'S WEAPONS OF MASS DESTRUCTION REPORTED TO THE UN SECURITY COUNCIL FRIDAY THAT THERE HAD BEEN SUBSTANTIAL PROGRESS IN GETTING IRAQ TO PROVIDE INFORMATION ABOUT ITS PROGRAMS FOR PRODUCING LONGRANGE MISSILES AND CHEMICAL AND BIOLOGICAL WEAPONS ACCORDING TO THE ASSOCIATED PRESS HOWEVER MR EKEUS LATER TOLD REPORTERS THAT IRAQ STILL HASN'T ACCEPTED THE UN REQUIREMENT OF LONGTERM WEAPONS MONITORING HE SAID HE WILL HOLD FURTHER TALKS WITH IRAQI OFFICIALS DURING THEIR VISIT TO NEW YORK IN MIDNOVEMBER DETAILS OF THE PROGRESS REPORT WERE CIRCULATING IN THE INDUSTRY BEFORE MR EKEUS MET WITH THE SECURITY COUNCIL THE LONDONBASED ENERGY COMPASS AN INDUSTRY PUBLICATION EARLIER HAD REPORTED ON A DOCUMENT SIGNED IN BAGHDAD ON OCT 8 BY REPRESENTATIVES OF IRAQ THE UN COMMISSION OVERSEEING THE DISMANTLING OF IRAQ'S NONCONVENTIONAL WEAPONS AND THE INTERNATIONAL ATOMIC ENERGY AGENCY THE DOCUMENT ACCORDING TO THE COMPASS DEMONSTRATES A RAPIDLY EMERGING CONSENSUS TO RESOLVE OUTSTANDING PROBLEMS AND IT SAID THE STAGE IS BEING SET FOR IRAQ'S DEPUTY PRIME MINISTER TO LOBBY THE SECURITY COUNCIL TO LIFT ALL THE SANCTIONS MR AZIZ IT ADDED WILL NOW FIND SOME SUPPORT FROM THE UN ITSELF THAT EVEN US AND BRITISH HARDLINERS MAY FIND HARD TO IGNORE STILL MANY IN THE INDUSTRY DOUBT IRAQ WILL BE ALLOWED TO EXPORT OIL AS LONG AS MR HUSSEIN IS ITS PRESIDENT MR EKEUS HAS TAKEN A HIGH PROFILE IN TALKING UP IRAQ'S REENTRY TO THE OIL MARKET SAID BERNARD J PICCHI INTERNATIONAL PETROLEUM ANALYST AT KIDDER PEABODY & CO BUT THIS IS A POLICY DECISION WHICH HAS TO BE MADE BY PERMANENT MEMBERS OF THE SECURITY COUNCIL AND TWO OF THEM THE US AND BRITAIN ARE SWORN ENEMIES OF THE IRAQI GOVERNMENT 9310180148 931018 JAPAN WHOLESALE PRICES FELL 37 IN SEPTEMBER FROM A YEAR EARLIER SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S SEPTEMBER OVERALL WHOLESALE PRICES WERE UNCHANGED FROM AUGUST BUT DECLINED 37 FROM THE YEAREARLIER MONTH THE BANK OF JAPAN REPORTED SEPTEMBER RESULTS ARE THE FIRST WHOLESALE PRICE DATA THAT INCORPORATE THE BANK OF JAPAN'S LATEST CUT IN ITS OFFICIAL DISCOUNT RATE BY 075 PERCENTAGE POINT TO THE NEW RECORD LOW OF 175 ON SEPT 21 THE CENTRAL BANK CITED THE STABILITY OF PRICES AS ONE FACTOR THAT IT TOOK INTO CONSIDERATION WHEN CUTTING THE DISCOUNT RATE PRICES DECLINED MORE THAN MANY ECONOMISTS HAD EXPECTED AND ECONOMISTS SAID THE BLEAK ECONOMIC PICTURE PROBABLY WOULD KEEP DOMESTIC PRICES SOFT A BREAKDOWN OF WHOLESALE PRICES SHOWED IRON AND STEEL ALUMINUM WINDOW SASH AND OTHER MATERIALS' PRICES DECLINING BECAUSE OF SLACK DEMAND IN CONSTRUCTION IN ADDITION WEAK DEMAND AND AN EARLIER DECLINE IN CRUDE OIL PRICES BROUGHT DOWN PRICES OF PETROLEUM AND COAL PRODUCTS AND CHEMICALS ON THE OTHER HAND PRICES OF EDIBLE AGRICULTURAL LIVESTOCK AND AQUATIC PRODUCTS INCREASED BUT A BANK OF JAPAN OFFICIAL NOTED THE PRICE OF UNPOLISHED RICE A FOCUS OF TRADE FRICTION BETWEEN JAPAN AND ITS MAJOR TRADING PARTNERS ROSE 47 FROM THE PREVIOUS MONTH IN EXPECTATION OF A POOR CROP BECAUSE OF UNSEASONABLE WEATHER THE CENTRAL BANK ALSO NOTED THAT EXPORT PRICES INCREASED AS CAR AND ELECTRONICS GOODS MAKERS CONTINUE TO RAISE PRICES TO COPE WITH OF THE APPRECIATION BY THE YEN 9310180147 931018 NOMURA WRITEDOWNS FOR HALF ON HOLDINGS TOTALED 1546 MILLION SPECIAL TO THE WALL STREET JOURNAL TOKYO NOMURA SECURITIES CO A MAJOR JAPANESE BROKERAGE HOUSE SAID LOSSES FROM WRITING DOWN ITS MARKETABLE SECURITIES HOLDINGS TOTALED 166 BILLION YEN 1546 MILLION FOR ITS FISCAL FIRST HALF ENDED SEPT 30 NOMURA SAID THE VALUATION LOSSES DON'T AFFECT EARNINGS PROJECTIONS FOR EITHER ITS FIRST HALF OR FULL FISCAL YEAR WHICH ENDS MARCH 31 1994 BECAUSE THE LOSSES WERE INCLUDED IN THE COMPANY'S MOST RECENT FORECAST ANNOUNCED SEPT 21 FOR THE FISCAL YEAR NOMURA'S LATEST PROJECTIONS CALL FOR PARENT PRETAX PROFIT OF 70 BILLION YEN UP FROM A YEAREARLIER 23 BILLION YEN AND NET PROFIT OF 250 BILLION YEN UP FROM 33 BILLION YEN OPERATING REVENUE IS FORECAST AT 420 BILLION YEN UP FROM A YEAREARLIER 3446 BILLION YEN FOR ITS FIRST HALF NOMURA EXPECTS TO REPORT 25 BILLION YEN IN PARENT PRETAX PROFIT UP FROM 900 MILLION YEN FOR THE YEAREARLIER PERIOD 10 BILLION YEN IN NET PROFIT UP FROM YEAREARLIER NET LOSS OF 84 BILLION YEN AND 200 BILLION YEN IN OPERATING REVENUE UP FROM 1785 BILLION YEN 9310180146 931018 MARKETING & MEDIA PROCTER & GAMBLE CO WILL CUT LIST PRICE OF CHARMIN LINE 2 CINCINNATI PROCTER & GAMBLE CO SAID IT WILL LOWER THE LIST PRICE OF ITS CHARMIN BRAND BY AN AVERAGE OF 2 EFFECTIVE NOV 29 THE COMPANY SAID THE PRICE REDUCTION REFLECTS THE DECLINING COSTS OF RAW MATERIALS AND IS CONSISTENT WITH P&G'S ONGOING EFFORTS TO SIMPLIFY PRICING AND PROMOTION SPENDING THE MOVE IS THE LATEST IN A SERIES OF PRICE CUTS BY THE CONSUMER PRODUCTS MAKER REFLECTING PRESSURE FROM LOWERPRICED RIVAL BRANDS AND LESSEXPENSIVE PRIVATELABEL IMITATIONS IN JULY THE COMPANY LOWERED THE PRICE OF LIQUID LAUNDRY DETERGENT FABRIC SOFTENER AND LIQUID DISHSOAP ADDITIONALLY P&G HAS SLASHED THE PRICE OF DISPOSABLE DIAPERS THREE TIMES IN THE PAST 17 MONTHS MOST RECENTLY IN MAY P&G SAID THE LIST PRICE CUT WILL BE OFFSET BY A REDUCTION IN MERCHANDISING FUNDS INCLUDING PROMOTIONAL SPENDING THE NET IMPACT OF THIS PRICING INITIATIVE IS AN AVERAGE PRICE REDUCTION OF 2 ACROSS THE LINE THE COMPANY SAID FOR CONSUMERS THIS COULD MEAN A SAVINGS OF A FEW CENTS A PACKAGE P&G SAID THE MOVE WILL HAVE NO NEGATIVE IMPACT ON CHARMIN'S PROFITS BECAUSE OF THE LOWER COST OF RAW MATERIALS AND DECLINING MERCHANDISING SPENDING THE CHARMIN BRAND INCLUDES CHARMIN ULTRA CHARMIN SPACEMAKER CHARMIN PLUS CHARMIN FREE CHARMIN POTPOURRI AND CHARMIN BIG SQUEEZE 9310180145 931018 STEEL IMPORTS IN AUGUST FELL FROM JULY ROSE FROM YEARAGO MONTH WASHINGTON US STEEL IMPORTS FELL 56 IN AUGUST FROM JULY BUT ROSE 111 FROM AUGUST 1992 AUGUST IMPORTS TOTALED 1599000 TONS COMPARED WITH 1694000 TONS IN JULY AND 1438000 TONS A YEAR EARLIER ACCORDING TO THE AMERICAN IRON AND STEEL INSTITUTE'S COMPILATION OF COMMERCE DEPARTMENT STATISTICS AUGUST 1993 IMPORTS REPRESENTED 183 OF CONSUMPTION IN JULY AND UP SLIGHTLY FROM 182 IN AUGUST 1992 STEEL IMPORTS FOR THE FIRST EIGHT MONTHS OF THIS YEAR TOTALED 11479000 TONS UP 13 FROM 11328000 TONS IN THE YEARBEFORE PERIOD IMPORT PENETRATION WAS 17 OF THE MARKET COMPARED WITH 178 FOR THE FIRST EIGHT MONTHS OF 1992 STEEL EXPORTS IN AUGUST TOTALED 298000 TONS DOWN 83 FROM 325000 TONS IN JULY AND DOWN 111 FROM 336000 TONS A YEAR EARLIER YEARTODATE EXPORTS TOTALED 2744000 TONS DOWN 57 FROM 2912000 TONS IN THE FIRST EIGHT MONTHS OF 1992 9310180144 931018 GALERIES LAFAYETTE POSTS WIDER LOSS FOR THE FIRST HALF SPECIAL TO THE WALL STREET JOURNAL PARIS FRENCH DEPARTMENT STORE CHAIN GALERIES LAFAYETTE SA SAID ITS LOSSES WIDENED IN THE FIRST SIX MONTHS OF 1993 AND PREDICTED THAT THE IMPROVEMENT IN ITS RESULTS THAT WAS EXPECTED FOR THE SECOND HALF WON'T OCCUR THE COMPANY POSTED A LOSS OF 140 MILLION FRANCS 245 MILLION FOR THE FIRST HALF COMPARED WITH 95 MILLION FRANCS A YEAR AGO GALERIES LAFAYETTE REPORTED AN OPERATING LOSS OF 275 MILLION FRANCS SHARPLY WIDER THAN THE 153 MILLION FRANCS A YEAR BEFORE AND SAID THE DETERIORATION REFLECTED A 72 FALL IN SALES TO 1389 BILLION FRANCS GALERIES SAID IT INCURRED A FINANCIAL CHARGE OF 169 MILLION FRANCS IN THE FIRST SIX MONTHS UP FROM 130 MILLION A YEAR EARLIER AND ATTRIBUTED THE RISE TO FINANCIAL COSTS RELATED TO ITS TAKEOVER OF THE NOUVELLES GALERIES STORE CHAIN IN JULY 1992 THE COMPANY SAID ITS FIRSTHALF EARNINGS WOULD HAVE BEEN WORSE BUT FOR AN INCREASE IN NONRECURRING GAINS TO 252 MILLION FRANCS FROM 113 MILLION A YEAR BEFORE THE 1993 FIGURE INCLUDES A 197 MILLIONFRANC CAPITAL GAIN FROM THE SALE OF ITS 49 STAKE IN COFINOGA A FINANCE COMPANY DESPITE A SATISFACTORY MONTH OF SEPTEMBER THE OUTLOOK FOR SALES IN THE SHORT TERM REMAINS UNCERTAIN AND THE IMPROVEMENT IN EARNINGS THAT WAS ANNOUNCED IN JUNE WILL NOT BE FORTHCOMING GALERIES SAID IT ADDED THAT IN VIEW OF THIS IT PLANS TO KEEP TIGHT CONTROL ON ITS MANAGEMENT IN AN EFFORT TO BOOST SALES 9310180143 931018 IDB TO BUY REST OF WORLDCOM LOS ANGELES IDB COMMUNICATIONS GROUP INC SAID IT AGREED TO ACQUIRE THE 60 OF WORLDCOM EUROPE IT DOESN'T ALREADY OWN FOR 10 MILLION IN CASH IDB ACQUIRED 40 OF WORLDCOM EUROPE A UKBASED UNIT OF SWISS ENERGY AND TECHNOLOGY CONCERN MOTORCOLUMBUS AG LAST YEAR IN A STOCK TRANSACTION MOTORCOLUMBUS THIS MONTH SAID IT WOULD SELL ITS IDB SHARES IN A SECONDARY OFFERING WORLDCOM EUROPE PROVIDES PRIVATELINE AND LONGDISTANCE TELEPHONE SERVICE IN EUROPE ESPECIALLY GERMANY AND THE UK IDB IS A SUPPLIER OF SATELLITE TRANSMISSION AND DISTRIBUTION SERVICES FOR RADIO TELEVISION AND DATAVOICE INDUSTRIES 9310180142 931018 KELLOGG POSTS RECORD PROFIT FOR 3RD QUARTER RESULTS SURPRISE INVESTORS SPARKING RALLY IN STOCKS OF CEREAL COMPANIES BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL KELLOGG CO REPORTED RECORD THIRDQUARTER PROFIT SURPRISING BEARISH WALL STREET ANALYSTS AND CAUSING THE PRICE OF ITS STOCK AND THOSE OF RIVAL CEREAL MAKERS TO JUMP THE WORLD'S LARGEST CEREAL COMPANY SAID IT EARNED 2093 MILLION OR 90 CENTS A SHARE ON FLAT SALES OF 17 BILLION A YEAR EARLIER KELLOGG REPORTED EARNINGS OF 1997 MILLION OR 84 CENTS A SHARE THIS YEAR THERE WERE 66 MILLION FEWER SHARES OUTSTANDING REFLECTING COMPANY STOCK REPURCHASES WALL STREET HAD BEEN EXPECTING A FLAT QUARTER WITH EARNINGS DEPRESSED BY WHAT ANALYSTS HAD ANTICIPATED WOULD BE HEAVY PROMOTIONAL SPENDING TO IMPROVE KELLOGG'S ESTIMATED 35 US MARKET SHARE THE CONSENSUS HAD BEEN FOR PERSHARE EARNINGS OF AROUND 85 CENTS BUT A LOWERTHAN ANTICIPATED TAX RATE COUPLED WITH A 25 MILLION DROP IN COST OF GOODS SOLD AND LITTLE INCREASE IN ADVERTISING AND PROMOTIONAL SPENDING COMBINED FOR NUMBERS THAT IMPRESSED INVESTORS AS A RESULT KELLOGG STOCK ROSE 325 A SHARE TO 56 ON VERY HEAVY NEW YORK STOCK EXCHANGE COMPOSITE VOLUME THAT INCREASE FOLLOWED A 3375 GAIN THURSDAY ON AN ANALYST'S BULLISH RECOMMENDATION SHARES OF ARCHRIVAL GENERAL MILLS INC ROSE 2125 TO CLOSE AT 72625 WHILE THOSE OF QUAKER OATS CO CLOSED UP 275 AT 72625 IN BIG BOARD TRADING FRIDAY STOCKS OF KELLOGG AND OTHER NAMEBRAND FOOD MANUFACTURERS HAVE BEEN IN THE DOLDRUMS FOR MONTHS AS WALL STREET QUESTIONED THE GROWTHSUSTAINING POWER OF BRANDS ARNOLD G LANGBO KELLOGG CHAIRMAN AND CHIEF EXECUTIVE OFFICER ATTRIBUTED THE THIRDQUARTER RECORD TO A SOLID OPERATIONAL PERFORMANCE AND CEREAL VOLUME GROWTH IN THE UNITED STATES AND INTERNATIONAL MARKETS OF 2 DESPITE CONTINUING CHALLENGING CONDITIONS WORLDWIDE MR LANGBO PREDICTED RECORD RESULTS FOR THE YEAR AND LOW DOUBLEDIGIT PERSHARE EARNINGS GROWTH OVER THE LONG TERM STILL SOME ANALYSTS VIEWED KELLOGG'S LATEST RESULTS AS MIXED JOANNA SCHARF AT SG WARBURG & CO TERMED THE NUMBERS VERY IMPRESSIVE BUT QUESTIONED WHETHER SUCH GAINS ARE SUSTAINABLE OVER THE LONG TERM GIVEN WEAK ECONOMIES IN KEY OVERSEAS MARKETS SUCH AS AUSTRALIA AND THE UNITED KINGDOM KIDDER PEABODY ANALYST DAVID RABINOWITZ ATTRIBUTED PART OF THE GAINS TO DOMESTIC PRICE INCREASES KELLOGG ANNOUNCED IN AUGUST BUT SAID HE REMAINED CONCERND ABOUT PRIVATELABEL CEREALS' CONTINUING TOLL ON NATIONAL BRANDS AND ESPECIALLY THOSE OF MARKETLEADER KELLOGG EVEN WITH A GOOD FOURTH QUARTER THEY WON'T SELL MORE TONNAGE THAN THEY DID IN 1988 HE SAID FOOD ANALYST JOHN MCMILLIN AT PRUDENTIAL SECURITIES SAID THE NUMBERS APPEAR TO REFLECT EFFORTS TO IMPROVE PRODUCTIVITY WORLDWIDE HE ESTIMATED THAT KELLOGG'S DOMESTIC CEREAL VOLUME ROSE ABOUT 1 DURING THE QUARTER THE BATTLE CREEK MICHBASED COMPANY WOULDN'T COMMENT KELLOGG'S NINEMONTH SALES AND OPERATING EARNINGS WERE DOWN FROM A YEAR EARLIER WHEN THE COMPANY TOOK A BIG ACCOUNTING CHARGE FOR THE THREE QUARTERS ENDED SEPT 30 EARNINGS TOTALED 5312 MILLION OR 228 A SHARE THAT COMPARES WITH EARNINGS OF 5549 MILLION OR 232 A SHARE BEFORE AN ACCOUNTING CHANGE THAT REDUCED EARNINGS BY 2516 MILLION OR 105 A SHARE SALES FOR THE LATEST NINE MONTHS WERE OFF NEARLY 1 TO 47 BILLION 9310180141 931018 UNION TEXAS PETROLEUM PACT HOUSTON UNION TEXAS PETROLEUM HOLDINGS INC SAID A SUBSIDIARY SIGNED AN AGREEMENT WITH THE TUNISIAN GOVERNMENT FOR PERMISSION TO EXPLORE FOR OIL AND NATURAL GAS IN A ONE MILLIONACRE BLOCK OFFSHORE THE AGREEMENT ALLOWS UNION TEXAS THE OPERATOR OF THE FIELD AND ITS 50 PARTNER LOUISIANA LAND & EXPLORATION CO BASED IN NEW ORLEANS TO BEGIN SEISMIC OPERATIONS THE BLOCK IS LOCATED ABOUT 180 MILES SOUTHEAST OF TUNIS AND ABOUT 80 MILES FROM THE TUNISIAN COAST IN THE GULF OF GABES 9310180140 931018 INTERNATIONAL GERMAN BANKRUPTCIES SURGE FRANKFURT CORPORATE INSOLVENCIES IN WESTERN GERMANY SURGED 42 IN JULY FROM A YEAR EARLIER THE FEDERAL STATISTICS OFFICE REPORTED OF THE TOTAL 1073 COMPANY BANKRUPTCIES THE LARGEST SHARE WAS IN THE SERVICE SECTOR WHICH ACCOUNTED FOR 289 OF THE TOTAL CLOSURES THAT MARKS A 50 INCREASE FOR THAT SECTOR FROM A YEAR EARLIER THE AGENCY SAID THE MANUFACTURING SECTOR SAW ITS SHARE OF INSOLVENCIES RISE 27 TO 211 COMPANIES IN THE MONTH CONSTRUCTION BANKRUPTCIES ROSE 27 TO 196 COMPANIES IN THE JANUARYJUNE PERIOD BANKRUPTCIES ROSE 29 TO 7141 FROM A YEAR EARLIER 9310180139 931018 FRANCE REWORKS OFFERING OF BNP TO MATCH DEMAND SPECIAL TO THE WALL STREET JOURNAL PARIS THE FRENCH GOVERNMENT'S PUBLIC OFFER OF SHARES IN BANQUE NATIONALE DE PARIS FOR PRIVATE INVESTORS HAS BEEN MORE THAN FIVE TIMES OVERSUBSCRIBED THE ECONOMICS MINISTRY SAID THE MINISTRY SAID ORDERS TOTALING 464 BILLION FRANCS 813 BILLION WERE RECEIVED FROM 28 MILLION INDIVIDUALS TO CATER TO THE DEMAND THE GOVERNMENT HAS DECIDED TO REDUCE THE BLOCK OF SHARES THAT WAS EARMARKED FOR INSTITUTIONAL INVESTORS BY 20 WHILE THE BLOCK SET ASIDE FOR A CORE GROUP OF STABLE SHAREHOLDERS WILL BE REDUCED BY 10 THE GOVERNMENT IS SIPHONING OFF 95 MILLION SHARES FROM THE INSTITUTIONAL AND CORE SHAREHOLDER BLOCKS THEREBY INCREASING THE AMOUNT OF SHARES AVAILABLE TO INDIVIDUAL INVESTORS BY 25 TO 469 MILLION SHARES THE GOVERNMENT PREVIOUSLY CUT SHORT THE INSTITUTIONAL TRANCHE OF THE SALE LAST WEEK AMID OVERWHELMING DEMAND THE INSTITUTIONAL TRANCHE WAS MORE THAN 12 TIMES OVERSUBSCRIBED INDIVIDUAL INVESTORS WERE ABLE TO PASS ORDERS THROUGH OCT 12 A TOTAL OF 277 MILLION SHARES WAS ALLOCATED TO INSTITUTIONAL INVESTORS TWOTHIRDS OF WHICH ARE BASED OUTSIDE FRANCE THE MINISTRY SAID THAT BECAUSE OF THE HUGE DEMAND INDIVIDUALS WHO PASSED PRIORITY ORDERS FOR UP TO 40 SHARES WILL RECEIVE ONLY 15 SHARES THE GOVERNMENT SET THE SELLING PRICE FOR THE SHARES AT 240 FRANCS 4208 A MUCH CHEAPER PRICE THAN THE MARKET HAD BEEN ANTICIPATING IT WAS INITIALLY PLANNED THAT A CORE GROUP OF SHAREHOLDERS INCLUDING NINE FRENCH AND SIX FOREIGN GROUPS WOULD TOGETHER CONTROL 15 OF BNP'S CAPITAL AFTER THE GOVERNMENT'S DECISION TO OFFER 10 FEWER SHARES TO THIS GROUP IT WASN'T IMMEDIATELY CLEAR HOW THIS TRANCHE WILL BE DIVIDED UP THE CORE GROUP INCLUDES A NUMBER OF MAJOR FRENCH INDUSTRIAL CONCERNS SUCH AS CONSTRUCTION MATERIAL MANUFACTURER CIE DE SAINTGOBAIN AND AUTO MAKER RENAULT SA ALL THE FRENCH CORE MEMBERS EITHER ARE PRIVATE OR ON THE ROAD TO PRIVATIZATION ON THE FOREIGN SIDE A BLOCK OF 184 MILLION SHARES WAS TO HAVE GONE TO DRESDNER BANK AG BNP'S GERMAN PARTNER DRESDNER AND BNP HAVE ACTUALLY SAID THEY WOULD LIKE TO HAVE 10 CROSSSHAREHOLDINGS SUGGESTING THAT DRESDNER MAY BOOST ITS CORE STAKE IN BNP LATER ON AND THAT BNP WILL TAKE A SLICE OF DRESDNER THE OTHER FOREIGNERS IN THE GROUP ARE BRITAIN'S BA T INDUSTRIES PLC GENERAL ELECTRIC CO OF THE US HOFFMANNLA ROCHE & CO OF SWITZERLAND AND TWO KUWAITI CONCERNS THE KUWAIT INVESTMENT AUTHORITY AND THE PUBLIC INSTITUTION FOR SOCIAL SECURITY 9310180138 931018 COMPUTERS APPLE TO PEEL AWAY CONFUSION OVER ITS EXISTING PRODUCT LINES BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC IS IN THE THROES OF A POTENTIALLY PAINFUL MARKETING PROBLEM HOW TO GET CUSTOMERS TO KEEP BUYING ITS MACINTOSH COMPUTERS AS IT GOES THROUGH A FIVEMONTH TRANSITION TO A NEW MORE POWERFUL LINE OF MACHINES TO GET FROM HERE TO THERE THE CUPERTINO CALIF COMPUTER MAKER IS ABOUT TO EMBARK ON A SIMPLE STRATEGY LATER THIS WEEK IT IS EXPECTED TO ANNOUNCE A CONSOLIDATION OF ITS CONFUSING ARRAY OF EXISTING PRODUCT LINES A MOVE THAT WILL EMBODY SHARP PRICE CUTS OF AS MUCH AS 20 TO PERSUADE POTENTIAL CUSTOMERS NOT TO WAIT FOR THE MUCH MORE ADVANCED MACHINES DUE OUT IN MIDMARCH WHETHER THIS STRATEGY WILL WORK IS FAR FROM CERTAIN THOUGH OTHER COMPUTER COMPANIES SUCH AS SUN MICROSYSTEMS INC HAVE SUFFERED STALLED SALES AND FINANCIAL PAIN IN MAKING TRANSITIONS TO NEW PRODUCT LINES WITH MORE PRICE CUTS LIKELY AS THE TRANSITION TO MACINTOSHES BASED ON A NEW POWERPC MICROPROCESSOR NEARS SOME USERS ARE LIKELY TO HOLD OFF FOR A BETTER PRICE BEFORE MAKING A PURCHASE THEY ARE IN THE MIDST OF THE BIGGEST TRANSITION SINCE THE ORIGIN OF THE MACINTOSH AND I THINK IT'S GOING TO BE A REALLY ROUGH NINE MONTHS FOR THEM SAYS JOHN J GIRTON VICE PRESIDENT RESEARCH FOR VAN KASPER & CO A SAN FRANCISCO SECURITIES FIRM AT THE SAME TIME THERE IS UNCERTAINTY ABOUT HOW WELL THE POWERPC ITSELF WILL FARE IN ITS VAUNTED EFFORT TO CAPTURE MARKET SHARE FROM PERSONAL COMPUTERS BASED ON RIVAL CHIPS BY INTEL CORP WITH INTEL CHIPS ALREADY A PROVEN COMMODITY AND OWNING BY FAR THE MAJOR SHARE OF THE WORLDWIDE MARKET WE BELIEVE THAT POWERPC MARKET ACCEPTANCE WILL NOT BE OVERWHELMING SAYS A SPOKESWOMAN FOR COMPAQ COMPUTER CORP A HOUSTONBASED MAKER OF PCS BASED ON INTEL CHIPS BUT APPLE'S POWERPC PARTNERS INTERNATIONAL BUSINESS MACHINES CORP AND MOTOROLA INC AS WELL AS MANY COMPUTER RETAILERS THINK THE POWERPC LINE IS GOING TO BE A BARNBURNER PROVIDING THE SAME PERFORMANCE AS INTEL'S TOP PENTIUM CHIP AT SHARPLY LOWER COSTS I HOPE THEY CAN MAKE A LOT OF POWERPCS BECAUSE THERE'S GOING TO BE A LOT OF DEMAND SAYS WILLIAM Y TAUSCHER PRESIDENT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF COMPUTERLAND CORP A BIG COMPUTER RESELLER BASED IN PLEASANTON CALIF I'M VERY BULLISH ON THEIR APPLE'S PROSPECTS THE PROBLEM AS RETAILERS SEE IT IS TO ENTICE CONSUMERS TO BUY MACS NOW TO MAKE SURE THAT HAPPENS APPLE LATE THIS WEEK WILL ANNOUNCE PRICE CUTS THAT INCLUDE A 10 TO 20 REDUCTION TO ABOUT 1550 ON A MIDSIZE MACINTOSH CALLED THE CENTRIS 610 WHICH WILL BE RENAMED THE QUADRA 610 AND GIVEN LESS MEMORY BUT MORE SPEED ACCORDING TO REPORTS IN THE TRADE PUBLICATION MACWEEK THE CENTRIS 610 CURRENTLY SELLS FOR ROUGHLY 1700 TO 2000 COMPUTER RESELLER NEWS REPORTS THAT NEXT MARCH WHEN APPLE IS EXPECTED TO LAUNCH A LINE OF MACINTOSH COMPUTERS BASED ON POWERPC CHIPS THE SAME QUADRA 610 MODEL WILL BE EQUIPPED WITH A POWERPC 601 CHIP THAT WILL PROVIDE TWO TO FOUR TIMES AS MUCH SPEED AND POWER AT THE VERY AGGRESSIVE PRICE OF 2000 APPLE IS ALSO EXPECTED TO ANNOUNCE THIS WEEK ITS MAJOR CONSOLIDATION OF MACINTOSH LINES WHICH NOW INCLUDE QUADRA AND CENTRIS MODELS ON THE HIGH END LC MODELS IN THE MIDDLE AND CLASSIC AND PERFORMA LINES ON THE LOWER END SO MANY VERSIONS ARE CONFUSING AS HELL TO THE CONSUMER SAYS TIM BAJARIAN PRESIDENT OF CREATIVE STRATEGIES A HIGHTECH CONSULTING FIRM BASED IN SANTA CLARA CALIF WHEN YOU ASK SOMEONE WHAT IS THE BEST MAC' SALES PEOPLE HAVE REAL TROUBLE IN THE CONSOLIDATION ACCORDING TO MR BAJARIAN AND OTHER ANALYSTS APPLE WILL FOLD THE CENTRIS INTO THE QUADRA LINE AND THE LC INTO THE PERFORMA LINE THE CLASSIC PERSONAL COMPUTER AND POWERBOOK NOTEBOOK COMPUTERS WILL CONTINUE TO BE SOLD SEPARATELY THEY SAY BASICALLY THEY'LL HAVE OLD MACS AND NEW MACS SAYS MARK MACGILLIVRAY MANAGING DIRECTOR OF H&M CONSULTING A SUNNYVALE CALIF RESEARCH FIRM THE NEW MACS WILL BE A COUPLE OF CENTRISES AND QUADRAS AND THEN THE OLD MACS WILL BE EVERYTHING THEY ALREADY HAVE THERE IN THE INSTALLED BASE OTHER ANALYSTS VIEW A CONSOLIDATION MOVE AS WELCOME AND LONG OVERDUE APPLE HAS TOO MANY MODELS OF VIRTUALLY THE SAME COMPUTER WHICH IS CAUSING ALL KINDS OF PRODUCTDIFFERENTIATION NIGHTMARES IN BOTH THE CUSTOMERS' AND RESELLERS' MINDS SAYS BRUCE M LUPATKIN AN ANALYST AT HAMBRECHT & QUIST A SAN FRANCISCO SECURITIES FIRM APPLE OFFICIALS DECLINE TO COMMENT ON ANY CONSOLIDATION OR PRICECUTTING PLANS ALTHOUGH A SPOKESWOMAN SAYS WE ARE LOOKING FOR WAYS TO SIMPLIFY OUR PRODUCT LINE THE CUSTOMERS SAY THEY WOULD LIKE IT TO BE SIMPLER TO SELECT WHICH COMPUTER IS EASIEST FOR THEM THE PRICECUTTING STRATEGY HAS ALREADY PROVEN SUCCESSFUL IN BOLSTERING APPLE'S ONCESAGGING MACINTOSH SALES AFTER INITIATING FIVE ROUNDS OF PRICE CUTS SINCE APRIL WITH SUGGESTED RETAIL PRICES LOPPED IN AUGUST BY AS MUCH AS ONETHIRD ON SOME COMPUTERS SALES IN THE FOURTH QUARTER ENDED SEPT 24 JUMPED 21 FROM A YEAR EARLIER TO A RECORD 214 BILLION GROSS MARGINS ON SALES HOWEVER PLUNGED TO 257 FROM 427 A YEAR EARLIER CONTRIBUTING TO BARELY BREAKEVEN NET INCOME OF 27 MILLION OR TWO CENTS A SHARE COMPARED WITH 976 MILLION OR 81 CENTS A SHARE A YEAR EARLIER SO FAR IN THE FISCAL 1994 FIRST QUARTER MACINTOSH SALES APPEAR TO BE HOLDING UP WELL WE HAVEN'T SEEN A SOFTENING IN THE DEMAND FOR MACS BECAUSE THE PRICING IS VERY COMPETITIVE SAYS A SPOKESMAN FOR COMPUTERLAND IT THE PRICING HAS PUT THE MACS WITHIN REACH OF JUST ABOUT EVERYBODY WHO WANTS ONE AT MICROAGE INC A BIG PC DISTRIBUTOR BASED IN TEMPE ARIZ KENNETH R WATERS PRESIDENT SAYS MACINTOSH SALES ARE RUNNING SO STRONG THAT HIS COMPANY IS BACKED UP ON ORDERS WE HAVE NOT SEEN THE DROPOFF HE SAYS AND FROM TALKING TO APPLE THEY AREN'T FEELING THAT YET BUT PROBLEMS COULD LOOM IF CUSTOMERS START MAKING DECISIONS SUCH AS MR MACGILLIVRAY'S CONSULTING FIRM'S CONFIDENT THAT APPLE WILL RATCHET PRICES DOWN AGAIN AS THE TRANSITION APPROACHES MR MACGILLIVRAY SAYS HIS COMPANY HAS DECIDED NOT TO BUY NEW MACINTOSHES UNTIL THEY GO DOWN EVEN LOWER WE'RE NOT GOING TO WAIT FOR POWERPC HE SAYS WE ARE GOING TO WAIT UNTIL THE SPECTER OF POWERPC HAUNTS THEM AND THEY HAVE TO DROP PRICES AGAIN 9310180137 931018 TECHNOLOGY WORDPERFECT SUES MICROSOFT OVER AD CLAIM BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL WORDPERFECT CORP HAS ASKED A FEDERAL JUDGE TO STOP ARCHRIVAL MICROSOFT CORP FROM CLAIMING IT HAS THE MOST POPULAR WORDPROCESSING PROGRAM IN A LAWSUIT FILED FRIDAY IN US DISTRICT COURT IN NEW YORK WORDPERFECT ALLEGED THAT MICROSOFT HAS VIOLATED TRADEMARK LAWS PROHIBITING FALSE AND DECEPTIVE CLAIMS THE SUIT TARGETS MICROSOFT ADVERTISEMENTS AND NEWS RELEASES THAT CLAIM THE COMPANY'S WORD PROGRAM IS THE MOST POPULAR WORD PROCESSOR IN THE WORLD WORDPERFECT BASED IN OREM UTAH ARGUES THAT IT DESERVES THAT TITLE BASED ON THE TOTAL COPIES OF ITS WORDPERFECT PROGRAM SOLD TO DATE IT CITES MARKET RESEARCH DATA SHOWING AN INSTALLED BASE OF MORE THAN 14 MILLION COPIES OF WORDPERFECT COMPARED WITH 10 MILLION FOR MICROSOFT WHICH IS BASED IN REDMOND WASH AS FAR AS WE CAN TELL 14 MILLION EXCEEDS 10 MILLION EVEN IN REDMOND SAID DUFF THOMPSON WORDPERFECT'S GENERAL COUNSEL WORDPERFECT CONTINUES TO BE THE MOST POPULAR WORD PROCESSOR IN THE WORLD THE SUIT COMES ON THE EVE OF MAJOR PRODUCT LAUNCHES FOR BOTH COMPANIES AT A NEWS CONFERENCE IN NEW YORK TOMORROW MICROSOFT WILL UNVEIL A NEW VERSION OF WORD AS PART OF A COMBINED PACKAGE CALLED MICROSOFT OFFICE THE LATEST VERSION OF WORDPERFECT IS SCHEDULED TO BEGIN APPEARING IN STORES THE SAME DAY AT A HEARING TODAY WORDPERFECT WILL SEEK A TEMPORARY RESTRAINING ORDER STOPPING MICROSOFT FROM USING THE MOSTPOPULAR PHRASE CHRIS PETERS GENERAL MANAGER OF MICROSOFT'S WORD BUSINESS UNIT SAID THE SUIT WAS SORT OF SURPRISING BUT WOULD NOT VIEW IT AS A BIG LOSS IF A JUDGE SIDED WITH WORDPERFECT WE'LL JUST HAVE TO SAY BESTSELLING' HE SAID 9310180136 931018 MARKET IS SEEN IN SMALLBUSINESS LOANS BY KENNETH H BACON AND EUGENE CARLSON STAFF REPORTERS OF THE WALL STREET JOURNAL WALL STREET'S ALCHEMISTS HAVEN'T FINISHED COMING UP WITH NEW FINANCIAL CONCOCTIONS THE LATEST INVOLVES SECURITIES BACKED BY POOLS OF SMALLBUSINESS LOANS THE DEVELOPMENT PROMISES TO INCREASE FUNDING FOR FASTGROWING COMPANIES SPREAD THE RISK OF SMALLBUSINESS LENDING AND GENERATE INCOME FOR THE UNDERWRITERS IF THE IDEA CATCHES FIRE IT COULD HELP LAUNCH A BROADBASED SECONDARYMARKET IN SMALLBUSINESS LOANS MUCH LIKE THE EXISTING MARKETS FOR SECURITIES BACKED BY HOME MORTGAGES AUTO LOANS AND CREDITCARD DEBT AND BY PROVIDING GREATER ACCESS TO CAPITAL FOR SMALL COMPANIES WHICH HAVE HAD TROUBLE PRYING LOANS OUT OF THE BANKS RECENTLY THE INNOVATION COULD GIVE THE BUSINESS SECTOR A BOOST FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN SAYS THE CREATION OF A SECONDARY MARKET FOR BUSINESS LOANS WOULD BE A MAJOR CONTRIBUTION TO THE FINANCIAL VITALITY OF THIS COUNTRY FINANCIAL SPECIALISTS DEBATE WHETHER THE SMALLBUSINESS SECURITIZATIONS WILL TAKE OFF AS OTHER SUCH INNOVATIONS HAVE SOME ARGUE THAT SMALLBUSINESS LOANS HAVE TRADITIONALLY BEEN CONSIDERED TOO HETEROGENEOUS AND RISKY TO SUPPORT SECURITIES SO FAR THE ONLY SECONDARY MARKET INVOLVES LOANS GUARANTEED BY THE SMALL BUSINESS ADMINISTRATION BUT THAT'S BEGINNING TO CHANGE SOME UNDERWRITINGS OF NONGUARANTEED LOANS HAVE ALREADY BEEN COMPLETED EARLIER THIS YEAR FREMONT FINANCIAL CORP A UNIT OF FREMONT GENERAL CORP IN SANTA MONICA CALIF SOLD 200 MILLION OF VARIABLERATE CERTIFICATES BACKED BY A POOL OF LOANS TO SMALL AND MEDIUMSIZE BUSINESSES SEVERAL BANKS INVESTMENT BANKERS AND EVEN THE STATE OF MAINE ARE SCRAMBLING TO SELL SECURITIES BASED ON SMALLBUSINESS LOANS THE FREMONT OFFERING WHICH SOLD OUT QUICKLY THROUGH MERRILL LYNCH & CO SHOWED THAT SMALLBUSINESS LOANS COULD BE POOLED AND ESSENTIALLY RESOLD TO INSURANCE COMPANIES PENSION FUNDS AND OTHER LARGE INVESTORS FREMONT FINANCIAL WHICH SPECIALIZES IN MAKING LOANS OF AS MUCH AS 5 MILLION TO SMALL AND MEDIUMSIZE BUSINESSES POOLED A DIVERSE PORTFOLIO OF LOANS TO MANUFACTURERS AND DISTRIBUTORS THE LOANS WERE SECURED BY ACCOUNTS RECEIVABLE INVENTORIES AND EQUIPMENT IT WAS A GROUNDBREAKING TRANSACTION SAYS DAVID KATZ A MANAGING DIRECTOR OF IRONWOOD CAPITAL PARTNERS LTD A HARTFORD CONN INVESTMENT BANKING FIRM IT SHOWED THAT LOANS TO SMALL BUSINESS CAN BE PACKAGED TO SERVE AS COLLATERAL FOR SALABLE SECURITIES WE'RE ACTIVELY EXPLORING THIS MARKET AND EVERY INVESTMENT BANKER I KNOW IS SAYS MR KATZ WHOSE FIRM SPECIALIZES IN ARRANGING PRIVATE PLACEMENTS RATHER THAN PUBLIC SALES OF SECURITIES THE HARD PART IS FINDING THE RIGHT ISSUER WE'RE TALKING TO BANKS FINANCE COMPANIES AND INSURANCE COMPANIES MR KATZ SAYS YOU WANT TO BE CAREFUL WITH WHOM YOU DO YOUR FIRST DEAL SOME BANKS ARE BETTER THAN OTHERS AT ORIGINATING AND SERVICING THEIR LOANS WITNESS ALL THE BANKS THAT HAVE FAILED WAYNE BAILEY THE CHIEF FINANCIAL OFFICER AT FREMONT GENERAL SAYS HIS COMPANY HAS A VERY SOPHISTICATED MONITORING PROCESS FOR TRACKING PERFORMANCE BY BORROWERS AS A RESULT THE NET CHARGEOFF ON ITS LOAN PORTFOLIO WAS 112 IN 1991 AND 075 IN 1992 THE LOANS BACKING THE FREMONT NOTES CARRIED INTEREST RATES OF MORE THAN FIVE PERCENTAGE POINTS ABOVE THE PRIME RATE THAT BANKS POST ON LOANS TO THEIR BEST CUSTOMERS WE'RE A 1 MILLION TO 5 MILLION LENDER BASICALLY WITH ACCOUNTS RECEIVABLE AND INVENTORY AS COLLATERAL IT'S A GOOD NICHE MR BAILEY EXPLAINS THE NOTE OFFERING ALLOWED FREMONT TO RETIRE BANK LOANS IT HAS USED TO FINANCE ITS OPERATIONS AND TO CUT ITS FUNDING COSTS BY ABOUT 75 BASIS POINTS HE ADDS MEANWHILE BANKS ALSO ARE STUDYING WAYS TO TURN SMALLBUSINESS LOANS INTO SECURITIES THERE'S A BUSINESS THERE SAYS RICHARD WESTERGAARD AN EXECUTIVE VICE PRESIDENT OF NORWEST BANK IN MINNEAPOLIS WE'RE WITHIN STRIKING DISTANCE OF COMING UP WITH AN ANALYTICAL MODEL FOR MEASURING THE RISK OF SMALLBUSINESS LOAN PORTFOLIOS MY BANK HAS COME TO REALIZE THAT ALTERNATIVE SOURCES OF FINANCING FOR CORPORATE AMERICA ARE BECOMING WIDER AND DEEPER HE SAYS AS A RESULT BANKS ARE LOOKING AT A LONGER MENU OF FINANCING OPTIONS EVERYTHING HAS BEEN ACCELERATED IN THE LAST SIX MONTHS HE ADDS CONGRESS IS ON THE VERGE OF TAKING ACTION THAT COULD SPEED DEVELOPMENT OF A SECONDARY MARKET FOR SMALLBUSINESS LOANS THE SENATE BANKING COMMITTEE HAS PASSED A PROPOSAL BY SEN ALFONSE D'AMATO R NY THAT WOULD CLEAR AWAY SEVERAL LEGAL IMPEDIMENTS TO THE SECURITIZATION OF SMALLBUSINESS LOANS AND INCLUDE A REGULATORY COMPROMISE THAT REDUCES THE CAPITAL THAT BANKS MUST HOLD AGAINST LOANS THEY SELL TO THE SECONDARY MARKET IN THE HOUSE REP PAUL KANJORSKI D PENN IS PUSHING A PROPOSAL THAT WOULD ALSO CLEAR AWAY LEGAL BARRIERS TO A SECONDARY MARKET FOR BUSINESS LOANS BOTH BILLS FOCUS ON LOANS THAT DON'T CARRY ANY GOVERNMENT GUARANTEE THERE ALREADY IS AN ACTIVE SECONDARY MARKET IN LOANS GUARANTEED BY THE SMALL BUSINESS ADMINISTRATION AND THE STATE OF MAINE HOPES TO CREATE A SECONDARY MARKET IN LOANS WITH STATE GUARANTEES THE FINANCE AUTHORITY OF MAINE SAYS IT PLANS TO SELL 20 MILLION TO 25 MILLION OF SECURITIES BACKED BY THE GUARANTEED PORTION OF BANK LOANS MADE TO MAINE FIRMS THE AUTHORITY TYPICALLY GUARANTEES 90 OF THE SMALLBUSINESS LOANS IT ACCEPTS FROM MAINE BANKS WE'RE TALKING GROCERY STORES HAIR SALONS VIDEO STORES SAYS CHARLES MERCER DIRECTOR OF EXTERNAL AFFAIRS THE AUTHORITY'S GUARANTEED BUSINESSLOAN PORTFOLIO TOTALS ROUGHLY 115 MILLION THE DEFAULT RATE OVER THE AGENCY'S 10YEAR HISTORY IS ABOUT 13 MR MERCER SAYS THE AGENCY SAYS IT WILL GO TO MARKET AS SOON AS IT RECEIVES A GOAHEAD FROM THE SECURITIES AND EXCHANGE COMMISSION MR MERCER SAYS THE SEC HAS RAISED NO OBJECTION SO FAR AND HE EXPECTS A GREEN LIGHT IN A COUPLE OF WEEKS A LOT OF STATES ARE WAITING TO SEE HOW WE DO HE ADDS 9310180135 931018 LETTERS TO THE EDITOR A HEALTHY DEBATE PETER BLOCK'S SEPT 24 LETTER TO THE EDITOR PRAISING THE CANADIAN HEALTH CARE SYSTEM A GRIZZLY TALE OF CANADIAN HEALTH CARE OVERLOOKED AN IMPORTANT CONCEPT ABOUT HIS HOSPITAL BILL FOR TREATMENT FOR THE BEAR MAULING HE SUFFERED WHILE HIS HOSPITAL BILL APPEARED COMPLETELY REASONABLE TO HIM FOR THE INTENSIVE SERVICES HE RECEIVED INCLUDING A MEDICAL HELICOPTER FLIGHT TRAUMA TEAM RESPONSE SURGERY AN ICU ADMISSION AND AN ADDITIONAL 10 DAYS OF INPATIENT CARE HE DOES NOT MENTION THAT HIS CARE WAS SUBSIDIZED TO A LARGE EXTENT BY THE CANADIAN TAXPAYER HE HAD THE BEST OF BOTH COUNTRIES LIVING IN THE US WITH ITS LOWER TAXES AND MEDICAL TREATMENT IN CANADA WHERE MANY OF THE MEDICAL COSTS ARE SHIFTED ONTO THE TAXPAYERS IF WE CREATED A SIMILAR SYSTEM AND PUT THE US FEDERAL GOVERNMENT IN COMPLETE CONTROL OF THE 14 OF OUR GDP THAT REPRESENTS HEALTH CARE WE COULD ALSO RECEIVE GREATLY SIMPLIFIED HOSPITAL BILLS HOWEVER THIS DOESN'T IMPLY IN ANY WAY THAT THE TOTAL COST OF PATIENT CARE WOULD BE ANY CHEAPER THE COSTS WOULD SIMPLY BE HIDDEN IN ONEROUS TAXES CITIZENS WOULD BE REQUIRED TO PAY THE PRIVATELY INSURED US PATIENT MUST PAY FOR HIS OWN MEDICAL TREATMENT AND ALSO SUPPORT THE BIGGEST FREELOADER FOR MEDICAL CARE IN THE WORLD THE US GOVERNMENT FOR MEDICARE AND MEDICAID THE PALTRY AMOUNTS REIMBURSED BY MEDICARE TO HOSPITALS AND PHYSICIANS HAVE CREATED THE PHENOMENON OF COST SHIFTING IN WHICH MEDICAL INSTITUTIONS ATTEMPT TO MAKE UP FOR LOSSES INCURRED WHILE TREATING MEDICARE PATIENTS BY OVERCHARGING PATIENTS WITH PRIVATE INSURANCE IN MY OWN PRACTICE AS A TRAUMA ANESTHESIOLOGIST I CAN VERIFY THE TREMENDOUS RESOURCES OF EQUIPMENT AND PERSONNEL THAT MUST BE AVAILABLE ON A MOMENT'S NOTICE TO TREAT PATIENTS SUCH AS MR BLOCK AT THE LEVEL ONE TRAUMA CENTER IN WHICH I PRACTICE A SURGEON AND ANESTHESIOLOGIST ARE AVAILABLE STRICTLY FOR TRAUMA 24 HOURS A DAY AS WELL AS A DEDICATED OPERATING ROOM TRAUMA NURSES OR NURSES RADIOLOGY TECHNICIANS LABORATORY TECHNICIANS CAT SCANNERS AND A FULLY STOCKED AND STAFFED TRAUMA EMERGENCY ROOM THERE ARE ENORMOUS COSTS FOR KEEPING A FACILITY OF THIS NATURE OPERATING WHICH I CAN ASSURE YOU ARE NOT ACCURATELY REFLECTED IN MR BLOCK'S HOSPITAL BILL MR BLOCK'S OPINIONS SHOWS THAT DISSOCIATING A PATIENT FROM THE TRUE COST OF HIS MEDICAL TREATMENT CAN GENERATE UNREALISTIC EXPECTATIONS HE RECEIVED STATEOFTHEART MEDICAL CARE BUT WAS SHIELDED FROM THE ACTUAL COST OF THE SERVICES THIS HAS CREATED IN MR BLOCK THE PERCEPTION THAT US HOSPITALS ARE VASTLY OVERCHARGING FOR THE SERVICES THEY RENDER WHEN IN FACT THE ITEMIZED BILL HE WOULD HAVE RECEIVED FROM A US HOSPITAL MAY BE A TRUER REFLECTION OF THE ACTUAL COST OF HIS MEDICAL TREATMENT PLUS AN AMOUNT SUBSIDIZING MEDICARE BY TURNING OVER CONTROL OF OUR MEDICAL SYSTEM TO THE FEDERAL GOVERNMENT WE ARE PLACING OUR HEALTH CARE FUTURE IN THE DOMAIN OF AN INSTITUTION THAT HAS PROVED ITSELF COUNTLESS TIMES HOPELESSLY OVERPRICED INEFFICIENT AND UNRESPONSIVE I HOPE US CITIZENS REALIZE THE LEVEL OF BUREAUCRATIC INTRUSIVENESS INTO THEIR LIVES THAT PRESIDENT CLINTON IS PROPOSING ENOUGH ALREADY I DO NOT CARE WHEN PRESIDENT CLINTON FORMED IDEAS FOR HEALTH CARE REFORM AND I AM SICK TO DEATH OF PEOPLE BELITTLING EVERY SUGGESTION MADE TOWARD THESE ENDS THE REALITY OF THE SITUATION IS THAT WITH A COUNTRY AS WEALTHY AS THE US OUR AVAILABLE HEALTH CARE COVERAGE IS DEPLORABLE WHILE BOTH MY HUSBAND AND I WORK WE CANNOT AFFORD ANY COVERAGE FOR OUR CHILDREN WITHOUT TAKING FOOD OFF THE TABLE ADDITIONALLY OUR AILING MOTHER CAN NOT GET ACCEPTED INTO A 24HOUR CARE FACILITY BECAUSE HER FINANCIAL STATUS PLACES HER ON LOW PRIORITY IN THE MEANTIME THIS WOMAN IS LEFT ON A PSYCHIATRIC WARD TO LINGER OVERMEDICATED AND UNDERATTENDED THESE TWO EXAMPLES ARE BUT THE TIP OF REALITY PEOPLE OFTEN HAVE TO CHOOSE BETWEEN A DOCTOR VISIT AND PAYING THE RENT IF THEY EVEN HAVE THAT MUCH OF A CHOICE HOWEVER THE CLINTON ADMINISTRATION MANAGES TO DO IT I PRAY REFORM WILL COME AND COME QUICKLY BUT MORE THAN THIS I HOPE THAT LEGISLATORS EVERYWHERE WILL RECOGNIZE THIS NEED AND GIVE THEM MORE SUPPORT IT'S UNFORTUNATE THAT PJ O'ROURKE HAD TO STOOP TO CLICHES AND SARCASM IN HIS SEPT 23 EDITORIALPAGE ESSAY HEALTH REFORM LICENSED TO KILL HE DOES A DISSERVICE TO YOUR PAPER YOUR READERS AND A HEALTH CARE SYSTEM THAT IS AN EXCELLENT MODEL FOR THE CURRENT REFORM PROCESS THANKS TO COMMENTATORS LIKE MR O'ROURKE MOST AMERICANS ARE CONVINCED THAT IN CANADA UNIVERSALITY COMES WITH THE PRICE TAG OF INORDINATE LIFETHREATENING DELAYS WRONG THERE IS A PRICE OF COURSE YOU WOULD DEFINITELY HAVE TO WAIT FOR COSMETIC SURGERY AND YOU MAY HAVE TO WAIT SOME WEEKS FOR ELECTIVE SURGERY SUCH AS A HYSTERECTOMY MANY AMERICANS WOULD FIND THIS UNACCEPTABLE ON THE OTHER HAND AMERICANS WOULD BENEFIT FROM THE FOLLOWING HIGHER LIFE EXPECTANCY AND LOWER INFANT MORTALITY INTERESTINGLY THE CLINTONS MIGHT JUST BE ON THE ROAD TO A CANADIANSTYLE PLAN WITH THIS CURRENT PROPOSAL BEING AN INTERIM POLITICALLY EXPEDIENT STEP EITHER WAY THEY ARE GOING TO FACE THE SAME CHALLENGE THAT IS FACING ALL COUNTRIES HOW DO YOU SUPPORT AN AGING POPULATION WITH IMPROVED DRUGS AND SURGICAL PROCEDURES THAT FURTHER EXTENDED LIFE EXPECTANCY AND COSTS AND HOW DO YOU CONTROL THE SOPHISTICATED PHARMACEUTICAL COMPANIES WHO ARE SAVING LIVES BUT ARE ENJOYING EXORBITANT GROSS MARGINS THE ANSWER MY FRIEND AIN'T EASY AND WILL CERTAINLY COST MORE BEFORE IT EVER COSTS LESS MR O'ROURKE IS WRONG ABOUT ONE OTHER IMPORTANT ISSUE GETTING WELL DOES NOT NECESSARILY HAVE TO BE VERY EXPENSIVE IN FACT GOOD HEALTH HABITS OR PREVENTION COMBINED WITH REASONABLE EXPECTATIONS BY ALL PARTIES WOULD BRING PER CAPITA COSTS DOWN TO THE NORM OR EVEN LOWER THAN THOSE EXPERIENCED BY OTHER DEVELOPED COUNTRIES SO PJ BUTTOUT THAT CIGAR GET YOUR STRESS UNDER CONTROL WALK THE DOG AND GIVE CANADA A WELLDESERVED BREAK IN AN EFFORT TO DEFEND HEALTH CARE IN BRITAIN NICHOLAS BROWNE COUNSELOR OF PRESS AND PUBLIC AFFAIRS AT THE BRITISH EMBASSY INSTEAD INADVERTENTLY CONDEMNS HIS COUNTRY'S SYSTEM IN HIS SEPT 24 LETTER TO THE EDITOR DESCRIBING PATIENTS REQUIRING NONEMERGENCY HOSPITALIZATION HE STATES THAT HALF ARE ADMITTED WITHIN FIVE WEEKS AND ABOUT THREEQUARTERS WITHIN THREE MONTHS VERY FEW HAVE TO WAIT OVER A YEAR TRY TELLING AMERICAN HEALTH CARE CONSUMERS WE USED TO CALL THEM PATIENTS THEY HAVE TO WAIT FIVE WEEKS THREE MONTHS MORE THAN A YEAR FOR THEIR CORONARY BYPASS HIP REPLACEMENT OR HERNIA REPAIR THEY'RE IN FOR A RUDE AWAKENING IF GOVERNMENT STARTS RUNNING HEALTH CARE NORMAN B TURE'S SEPT 27 EDITORIALPAGE ARTICLE CLINTON'S BIG SIN TAX ERROR MISSES THE CRUCIAL POINT THAT IN ADDITION TO GENERATING REVENUES INCREASING EXCISE TAXES ON TOBACCO AND ALCOHOL PRODUCTS HAVE IMPORTANT HEALTHBEHAVIOR EFFECTS IN CANADA WHERE TAXES ADD THE EQUIVALENT OF 225 TO THE COST OF A PACK OF 20 CIGARETTES THE SLOPE OF THE DECLINE IN PER CAPITA TOBACCO CONSUMPTION IS SIGNIFICANTLY STEEPER THAN IN THE US IT IS ESTIMATED THAT FOR EVERY 10 INCREASE IN THE PRICE OF CIGARETTES THAT THERE WILL BE A 4 TO 5 REDUCTION IN THE AMOUNT OF CIGARETTES USED THE SMOKING RATE IN CALIFORNIA DECREASED BY 17 FROM 1987 TO 1990 AND THIS WAS GREATLY FACILITATED BY STRONG EDUCATIONAL PROVISIONS AND A 25CENTPERPACK INCREASE IN EXCISE TAXES IMPLEMENTED IN 1989 DUE TO A VOTER INITIATIVE THE HEALTH CARE COST REDUCTIONS THROUGH SUCH CHANGES WILL OCCUR OVER A LONG PERIOD OF TIME AND SO MAY NOT BE IMMEDIATELY OBVIOUS BUT REDUCTIONS DUE TO IMPROVED HEALTH STATUS MAY ACTUALLY PROVIDE THE GREATEST REDUCTION IN HEALTH CARE COSTS OVER THE LONG RUN CIGARETTE SMOKING HAS BEEN DESIGNATED AS THE FOREMOST PREVENTABLE CAUSE OF DEATH IN AMERICA DR GEORGE LESMES HAS STATED THAT PERHAPS NO SINGLE INTERVENTION HAS THE POTENTIAL TO COMBAT THE SKYROCKETING COSTS OF HEALTH CARENG CESSATION WHERE DOES HILLARY RODHAM CLINTON REALLY STAND REGARDING ABORTION THE CLINTON HEALTH CARE PLAN SOUNDS THE DEATH KNELL FOR ROE V WADE'S RULING THAT A WOMAN'S DECISION TO HAVE AN ABORTION IS A CONSTITUTIONALLY PROTECTED PRIVACY RIGHT THE CLINTON PLAN DEEMS A PERSON'S HEALTH CARE DECISIONS ABOUT WHAT IS TO BE DONE WITH HIS OR HER OWN BODY NOT TO BE PART OF CONSTITUTIONALLY PROTECTED PRIVACY BUT AS ACTIVITIES OF COMMERCE WHICH THE CLINTONS CONTEND THE FEDERAL GOVERNMENT MAY REGULATE THE CLINTON HEALTH CARE PROGRAM AS DESCRIBED IN YOUR SEPT 30 ARTICLE CAN BE SUMMARIZED AS FOLLOWS WHENEVER YOU BECOME SERIOUSLY ILL OR INJURED YOU GO TO YOUR GOVERNMENT DIRECTED HMO WHERE FOR A NOMINAL AFTERTAX CHARGE THEY WILL DO ALL THE PAPER WORK TO PRETEND YOU ARE BEING TAKEN CARE OF YOU IN TURN WILL PRETEND THAT YOU ARE STILL ALIVE AND FEELING BETTER THIS WILL NOT ONLY REDUCE NATIONAL AFTERTAX HEALTH EXPENDITURES BUT WILL ALLEVIATE OTHER PROBLEMS SUCH AS TRAFFIC CONGESTION AND THE HOUSING SHORTAGE THE PLAN MANDATES CARE BASED ONLY ON DIFFERENCES OF NEED WHERE HAVE I HEARD THAT LINE BEFORE FROM EACH ACCORDING TO HIS ABILITIES TO EACH ACCORDING TO HIS NEEDS 9310180134 931018 HYUNDAI EXTENDS REBATES FOUNTAIN VALLEY CALIF HYUNDAI MOTOR AMERICA SAID IT IS EXTENDING ITS REBATE PROGRAM THROUGH JAN 4 THE US SALES ARM OF SOUTH KOREA'S HYUNDAI MOTOR CO SAID THE INCENTIVES RANGE FROM 600 TO 2000 ON 1993 MODELS AND 250 TO 1000 ON CORRESPONDING 1994 MODELS ADDITIONALLY IT IS OFFERING A TWOYEAR OR 24000MILE SERVICE AND MAINTENANCE WARRANTY ON 1994 MODELS OR AN ADDITIONAL 250 IN LIEU OF THE WARRANTY 9310180133 931018 TECHNOLOGY TEXAS INSTRUMENTS EARNINGS SURGED IN THIRD QUARTER ON RECORD REVENUE BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS TEXAS INSTRUMENTS INC SAID ITS EARNINGS MORE THAN DOUBLED IN THE THIRD QUARTER ON RECORD REVENUE CHEERING A STOCK MARKET THAT RECENTLY SOURED ON SEMICONDUCTOR STOCKS TI REPORTED NET INCOME OF 146 MILLION OR 154 A SHARE UP SHARPLY FROM 57 MILLION OR 58 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 14 TO 22 BILLION FROM 19 BILLION THOUGH TI'S EARNINGS WERE WELL ABOVE ANALYSTS' ESTIMATES THE RESULTS INCLUDED UNEXPECTEDLY HIGH ROYALTY INCOME FOR THE QUARTER AS WELL AS A SUBSTANTIAL TAX CREDIT EARNINGS FROM OPERATIONS TOTALED 62 CENTS A SHARE JUST ABOVE WALL STREET'S EXPECTATIONS OF 59 CENTS NEVERTHELESS TI SHARES WERE UP 2875 TO 65875 IN NEW YORK STOCK EXCHANGE TRADING FRIDAY THE ISSUE WHICH CLIMBED AS HIGH AS 69 DURING THE TRADING DAY ALSO BUOYED OTHER SEMICONDUCTOR STOCKS WHICH HAD SUFFERED IN RECENT WEEKS AS WALL STREET GREW JITTERY ABOUT DROPPING MARGINS AND WEAKENING DEMAND ADVANCED MICRO DEVICES INC FOR EXAMPLE CLOSED UP 375 CENTS TO 2025 AFTER TUMBLING NEARLY 18 A WEEK EARLIER WHEN ITS EARNINGS DISAPPOINTED INVESTORS PEOPLE HAD TO FIND A CERTAIN SENSE OF COMFORT IN WHAT TI SAID SAID JAMES L BARLAGE A CHIP ANALYST AT SMITH BARNEY IN NEW YORK WHAT THE COMPANY DID WAS ADDRESS A LOT OF ISSUES OUT THERE TI FOR INSTANCE SAID ITS SEMICONDUCTOR MARGINS INCREASED DURING EACH OF THE PAST SIX QUARTERS AND IT SAID DEMAND FOR ITS CHIPS WAS CONTINUING TO GROW FASTER THAN THE COMPANY COULD FILL ORDERS LAST WEEK CHIP STOCKS TUMBLED AFTER THE SEPTEMBER BOOKTOBILL RATIO THE INDUSTRY'S KEY ECONOMIC MEASUREMENT GAUGE DROPPED TO ITS LOWEST LEVEL IN NEARLY TWO YEARS WILLIAM A AYLESWORTH TI'S CHIEF FINANCIAL OFFICER SAID HIS COMPANY SEES NO SUCH SLOWDOWN HE SAID TI CONTINUES TO PROJECT THAT THE WORLD SEMICONDUCTOR MARKET WILL END THE YEAR UP 20 COMPARED WITH 1992 MR AYLESWORTH THOUGH SAID TI HAS NOTICED A SLIGHT INCREASE IN THE AMOUNT OF TIME ITS CUSTOMERS HOLD TI'S CHIPS IN INVENTORY HE SAID INVENTORIES DURING THE PERIOD WERE ABOUT 45 WEEKS UP FROM FOUR WEEKS THE PRIOR QUARTER THOUGH THAT NUMBER COULD SIGNAL A SLOWDOWN IN DEMAND IF IT CONTINUES MR AYLESWORTH SAID IT'S STILL BELOW THE 11 WEEKS OF INVENTORY CLOCKED BY MANY COMPANIES DURING THE SEMICONDUCTOR BUST OF THE LATE 1980S TI'S SUCCESS IN SEMICONDUCTORS DURING THE QUARTER WAS SOMEWHAT OFFSET BY DECLINING REVENUE IN ITS DEFENSE ELECTRONICS BUSINESS AND CONTINUING LOSSES IN ITS INFORMATION TECHNOLOGY OPERATION THE COMPANY SAID ITS ROYALTY REVENUE WAS UP SUBSTANTIALLY DURING THE PERIOD THANKS TO THE HEALTHIER WORLD SEMICONDUCTOR MARKET 9310180132 931018 AUTOS PRICES TAKE OFF FOR HOTSELLING GOOD USED CARS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL NEVER MIND THE PRICE OF GASOLINE FORGET THOSE HIGHER TAXES THE INFLATIONARY HOT SPOT IN TODAY'S ECONOMY IS THE HUMBLE USED CAR PRICES OF USED CARS ARE RISING AT TRIPLE THE RATE OF OTHER CONSUMER GOODS AND SERVICES DEMAND FOR RECENT LOWMILEAGE MODELS IS OUTSTRIPPING SUPPLY BOOSTING PRICES AT USEDCAR LOTS AROUND THE COUNTRY USED CARS ARE THE CLASSIC EXAMPLE OF ECONOMICS 101 SAYS JOEL PITCOFF MANAGER OF RESEARCH AND ANALYSIS AT FORD MOTOR CO THERE ARE NO PRICE SUPPORTS OR ANYTHING ELSE TO MUDDY THE WATER IT'S HOW MANY THERE ARE AND WHO WANTS THEM DEMAND HAS BEEN FAIRLY STRONG ALL ALONG CONTRIBUTING TO AN UPWARD TREND IN USEDCAR PRICES THAT GOES BACK TO 1990 WITH THE UNEASINESS ABOUT JOB SECURITY MANY FAMILIES HAVE DEFERRED REPLACING OLD CARS WHEN THEY CAN'T WAIT ANY LONGER MANY OF THEM ARE LOOKING ON USEDCAR LOTS INSTEAD OF NEWCAR SHOWROOMS CHRYSLER CORP ESTIMATES THAT 65 OF ROUGHLY 40 MILLION CARS SOLD LAST YEAR WERE USED COMPARED WITH 58 BACK IN 1986 AS PEOPLE POSTPONE PURCHASES THEIR VEHICLES DIE ON THEM SAYS CHRYSLER ECONOMIST DONALD HILTY THEY'VE DECIDED I JUST CAN'T AFFORD A NEW ONE I DON'T WANT TO GO INTO DEBT JUST NOW' SO THEY BUY USED RATHER THAN NEW THE STICKER PRICE ON A POPULAR 1994 FORD TAURUS FOURDOOR SEDAN FOR INSTANCE IS 17315 A USED 1991 TAURUS RETAILS FOR AN AVERAGE OF 8500 ACCORDING TO THE NATIONAL AUTOMOBILE DEALERS ASSOCIATION A LOT OF PEOPLE DON'T HAVE THE MEANS FOR A 20000 NEW CAR SAYS ANNE SULLIVAN GENERAL SALES MANAGER AT MUZI FORD IN NEEDHAM MASS SO THEY'RE LOOKING FOR A TWO OR THREEYEAROLD USED CAR WITH UNDER 50000 MILES YET THOSE ARE PRECISELY THE CARS THAT ARE HARD TO COME BY ONE REASON IS THE DROP IN SALES OF NEW CARS A FEW YEARS BACK A BIGGER FACTOR IS A CHANGE THAT THE BIG THREE AUTO MAKERS MADE IN MARKETING VEHICLES TO THE RENTACAR BUSINESS SEVERAL YEARS AGO TO AVOID DISRUPTING THE ASSEMBLY LINES WE ENCOURAGED THROUGH PRICES AND CONTRACTUAL DEVICES DAILYRENTAL COMPANIES TO REPLACE VEHICLES AS FREQUENTLY AS EVERY FOUR MONTHS WHEREAS PREVIOUSLY IT HAD BEEN SIX MONTHS AND BEFORE THAT NINE SAYS FORD'S MR PITCOFF THIS INCREASED THE SUPPLY OF USED CARS FLOWING FROM RENTAL COMPANIES TO THE REGIONAL DEALER AUCTIONS AROUND THE COUNTRY AND PUSHED DOWN USEDCAR PRICES THE AVAILABILITY OF THESE NEARLY NEW CARS CUT DEEPLY INTO NEWCAR SALES HOWEVER SO IN 1991 FIRST FORD AND THEN THE OTHER AUTO MAKERS CHANGED THEIR MINDS AND BEGAN TO REQUIRE RENTAL COMPANIES TO HOLD ONTO CARS FOR SIX MONTHS OR 15000 MILES WHICHEVER CAME FIRST THIS CHANGE BEGAN TO CUT INTO THE SUPPLY OF USED CARS ON THE MARKET LAST YEAR AND CONTINUES TO PUSH UP USEDCAR PRICES TODAY IT IS APPARENTLY OVERWHELMING A POTENTIALLY OFFSETTING EFFECT AN INCREASE IN THE POPULARITY OF LEASING DEALS WHERE INSTEAD OF BUYING A CAR OUTRIGHT CUSTOMERS LEASE A NEW CAR THROUGH A NEWCAR DEALER FOR A COUPLE OF YEARS AND THEN RETURN IT ADDING TO THE SUPPLY OF USED CARS IT'S A LONG WAY FROM THE CORPORATE HEADQUARTERS OF THE BIG THREE TO THE FASTTALKING USEDCAR SALESMAN BUT USEDCAR PRICES ARE EXQUISITELY SENSITIVE TO SUCH CORPORATE DECISIONS WHOLESALE PRICES ARE SET WEEKLY OR IN SOME CASES TWICE A WEEK AT THE 300 OR SO REGIONAL USEDCAR AUCTIONS PRICES PAID AT THESE AUCTIONS USUALLY OPEN ONLY TO DEALERS ARE TRANSMITTED BY A TRADE PUBLICATION CALLED AUTOMOTIVE MARKET REPORT IT TELLS THE CURIOUS THAT A 1990 DODGE SHADOW WENT FOR 5400 AT A RECENT AUCTION IN ORLANDO FLA AND ANOTHER FETCHED PRECISELY THE SAME PRICE THE NEXT DAY IN CALEDONIA WIS IT ALSO SHOWS THAT THE AVERAGE WHOLESALE PRICE OF A CLEAN 1990 FOURDOOR FORD ESCORT IN THE NORTHEAST WAS 4150 IN EARLY SEPTEMBER THE SAME MODEL WENT FOR 4160 IN MARCH EVEN THOUGH THE CAR WAS THEN SIX MONTHS YOUNGER COMPOUNDING THE CLASSIC RISE IN PRICES PRODUCED BY SHORT SUPPLIES IS A LITTLENOTED RIPPLE EFFECT OF THE RISE IN THE VALUE OF THE JAPANESE YEN AGAINST THE DOLLAR IT HAS INCREASED THE PRICE OF THE NEW JAPANESE VEHICLES AND THAT IN TURN HAS CAUSED AN INCREASE IN THE VALUE OF THE USED CARS SAYS LARRY TRIBBLE OWNER OF SOUTHERN AUTO AUCTION EAST WINDSOR CONN IN ANY EVENT THE RISE IN USEDCAR PRICES MAY PRESAGE GOOD THINGS FOR THE AUTO INDUSTRY THE HIGHER THE PRICES OF USED CARS THE MORE THEY FETCH AS TRADEINS MAKING NEW CARS THAT MUCH MORE AFFORDABLE 9310180131 931018 ZAPATA TO SELL TIDEWATER SHARES HOUSTON ZAPATA CORP SAID IT PLANS TO SELL ABOUT 41 MILLION COMMON SHARES OF TIDEWATER INC IN A PUBLIC OFFERING ZAPATA A NATURALGAS AND OIL PRODUCTION AND SERVICES COMPANY WITH INTERESTS IN FISH MEAL ESTIMATED THE VALUE OF THE PROPOSED SALE AT 101 MILLION ZAPATA SAID PROCEEDS WILL BE USED TO PAY OFF DEBT AND TO FINANCE ACQUISITIONS ZAPATA CURRENTLY OWNS 48 MILLION SHARES OF TIDEWATER A 91 STAKE TIDEWATER IS AN OIL SERVICES COMPANY 9310180130 931018 TELEGLOBE SLATES OFFERING MONTREAL TELEGLOBE INC SAID IT PLANS TO SELL ITS COMMUNICATION PRODUCTS DIVISIONS THROUGH AN INITIAL PUBLIC OFFERING IN CANADA THE DIVISIONS HAD EARNINGS FROM OPERATIONS OF 63 MILLION CANADIAN DOLLARS US48 MILLION ON SALES OF C626 MILLION FOR THE 12 MONTHS ENDED AUG 31 TELEGLOBE SAID IT WILL SELL ALL ITS SHARES IN THE NEW ENTITY MEMOTEC COMMUNICATIONS INC TERMS OF THE OFFERING ARE TO BE FINALIZED AROUND THE END OF NOVEMBER SCOTIAMCLEOD INC WILL LEAD THE UNDERWRITING GROUP TELEGLOBE SAID THE DIVESTITURE IS CONSISTENT WITH ITS STRATEGY OF FOCUSING ON INTERNATIONAL TELECOMMUNICATIONS SERVICES 9310180129 931018 MARKETING & MEDIA COORS POSTS SALES GAINS GOLDEN COLO COORS BREWING CO SAID IT SOLD 34 MORE BEER AND OTHER MALT BEVERAGES IN THE 16WEEK QUARTER ENDED OCT 3 THAN IN THE YEAREARLIER QUARTER THE COMPANY SAID SALES VOLUME WAS BOOSTED MOST BY COORS LIGHT ZIMA AND KILLIAN'S IRISH RED 9310180128 931018 ITALY'S INDUSTRIAL EMPLOYMENT MILAN ITALIAN EMPLOYMENT IN INDUSTRIAL COMPANIES WITH MORE THAN 500 WORKERS FELL 56 IN JULY FROM THE YEAREARLIER PERIOD AND WAS DOWN 04 FROM JUNE THE STATE STATISTICAL OFFICE ISTAT SAID IN THE JANUARYTOJULY PERIOD EMPLOYMENT IN MAJOR INDUSTRIAL COMPANIES FELL AN AVERAGE 61 FROM THE YEAREARLIER PERIOD ISTAT SAID THE DECLINE WAS EVIDENT IN ALL SECTORS IT ADDED AMONG THE WORST HIT WAS TRANSPORT NETWORK CONSTRUCTION DOWN 82 AND THE STEEL INDUSTRY DOWN SLIGHTLY MORE THAN 10 ISTAT ALSO SAID AVERAGE GROSS EARNINGS FELL 01 IN JULY FROM A YEAR EARLIER WHILE IN THE JANUARYJULY PERIOD AVERAGE GROSS EARNINGS GREW 06 FROM THE YEAREARLIER PERIOD 9310180127 931018 INTERNATIONAL CARDENAS SEEKS MEXICAN PRESIDENCY AS RULING PARTY MOUNTS MUDDY FIGHT BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY CUAUHTEMOC CARDENAS A PROMINENT OPPOSITION FIGURE FORMALLY ANNOUNCED HIS CANDIDACY FOR PRESIDENT AMID SIGNS THE RULING PARTY IS UP TO SOME OF ITS DIRTY TRICKS THE ATTACKS COME AT AN ODD TIME BECAUSE THE RULING PARTY RECENTLY CHANGED ELECTION LAWS TO MAKE NEXT YEAR'S VOTING CLEANER IF ONLY BECAUSE MEXICO'S INTERNATIONAL TRADING PARTNERS VIEW IT AS A TEST OF HOW MUCH MEXICO HAS REFORMED ITS NOTORIOUSLY CORRUPT POLITICS IN ADDITION MR CARDENAS AND HIS DEMOCRATIC REVOLUTIONARY PARTY OR PRD APPEAR TO POSE ONLY A MILD THREAT TO THE RULING INSTITUTIONAL REVOLUTIONARY PARTY OR PRI YET THE BITTERNESS OF HIS PAST ATTACKS ON THE PRI HAS APPARENTLY LED IT TO EMBARRASS HIM PUBLICLY IN RECENT WEEKS THE WILDEST INCIDENT CAME IN LATE SEPTEMBER WHEN THE 59YEAROLD MR CARDENAS WAS MAKING A SPEECH IN VERACRUZ SUDDENLY A GROUP OF WINOS AND WILDLY DRESSED TRANSVESTITES RUSHED UP TO THE STAGE CARRYING PROCARDENAS BANNERS AND GATHERED NEXT TO HIM PHOTOS OF MR CARDENAS AND HIS RAGTAG SUPPORTERS APPEARED IN NEWSPAPERS AROUND THE COUNTRY VIDEOTAPES ALSO REPORTEDLY HAVE BEEN SENT TO SOME FOREIGN NEWSPAPERS ALTHOUGH THE PRI HASN'T ACKNOWLEDGED ANY ROLE IN THE INCIDENT POLITICAL COMMENTATORS IN MEXICO WIDELY ASSUME THAT THE PRI STAGED THE EVENT TO TRY TO DISCREDIT MR CARDENAS MORE RECENTLY A RESPECTED JOURNALIST ACCUSED THE PRI OF TRYING TO KEEP HIM FROM GRANTING AIR TIME TO OPPOSITION FIGURES ON HIS RADIO SHOW AN IMPORTANT ISSUE IN ELECTIONS HERE BECAUSE NEWSPAPERS AREN'T WIDELY READ AND MANY PEOPLE DON'T HAVE TELEVISIONS BUT JUST ABOUT EVERYONE LISTENS TO THE RADIO THE JOURNALIST MIGUEL ANGEL GRANADOS CHAPA INTERVIEWED MR CARDENAS ON HIS RADIO TALK SHOW RECENTLY THEN THE NEXT DAY HE FOUND HIMSELF FACING NEW RESTRICTIONS FROM HIS MANAGERS CONCERNING WHO COULD BE ON THE SHOW MR GRANADOS CHAPA SAYS THE GOVERNMENT LEANED ON HIS STATION TO CENSOR HIM BY THREATENING TO USE AN OBSCURE LITTLEENFORCED LAW TO REVOKE A BROADCAST LICENSE THAT HIS STATION HELD HE QUIT IN PROTEST THE GOVERNMENT HAS DENIED THAT THE PHONE CALL ABOUT THE BROADCAST LICENSE WAS AN ATTEMPT AT CENSORSHIP IT HAS ALSO DENIED OTHER CHARGES BY THE PRD SUCH AS THAT IT HAS PRESSURED OTHER STATIONS TO CANCEL INTERVIEWS WITH MR CARDENAS OR THAT IT HAS HAD HIS POSTERS TORN DOWN IN SOME SECTIONS OF MEXICO CITY STILL THE FUSS CREATED BY THE CHARGES OF DIRTY TRICKS BEGINS TO BRING MR CARDENAS' CAMPAIGN INTO FOCUS HIS PROBLEM HAS BEEN THAT HIS SUCCESS AS A PRESIDENTIAL CANDIDATE IN 1988 MANY SAY HE WOULD HAVE WON THE ELECTION IF THE PRI HADN'T STOLEN IT FROM HIM WAS BASED ON PROTEST VOTES THAT PROBABLY WON'T BE AVAILABLE THIS TIME AROUND IN 1988 MANY MEXICANS WERE FED UP WITH THE COUNTRY'S ECONOMIC PROBLEMS A LEGACY OF WHAT PEOPLE STILL CALL THE TRAGIC DOZEN YEARS UNDER PRESIDENTS LUIS ECHEVERRIA AND JOSE LOPEZ PORTILLO BUT PRESIDENT CARLOS SALINAS DE GORTARI HAS TURNED THE ECONOMY AROUND IT'S GOING TO BE HARD TO RUN AGAINST SIX YEARS OF ECONOMIC GROWTH SAYS M DELAL BAER DIRECTOR OF THE MEXICO PROJECT AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES IN WASHINGTON MR CARDENAS STILL HAS ENORMOUS PERSONAL RECOGNITION AND APPEAL AKIN TO THE SORT THE KENNEDY FAMILY ONCE HAD IN THE US HIS FATHER WAS PRESIDENT OF MEXICO IN THE 1930S AND BECAME ONE OF THIS COUNTRY'S MOST POPULAR OFFICIALS EVER WHEN HE NATIONALIZED THE PROPERTIES OWNED BY INTERNATIONAL OIL COMPANIES AND STOOD UP TO ALL THE PRESSURE THAT FOLLOWED BUT ROBERT PASTOR DIRECTOR OF THE LATIN AMERICAN AND CARIBBEAN PROGRAM AT THE CARTER CENTER IN ATLANTA SAYS THAT CARDENAS HAS BEEN CASTING ABOUT FOR A NEW MESSAGE MR CARDENAS SEEMS TO HAVE SETTLED ON A THEME WHICH HE EMPHASIZED REPEATEDLY AS HE ACCEPTED THE PRD'S NOMINATION FOR PRESIDENT IN THE SPORTS PALACE HERE AND WHICH THE TRANSVESTITES AND CENSORSHIP QUESTIONS HELPED HIM UNDERSCORE THE MESSAGE IS THAT MR CARDENAS' CANDIDACY STANDS FOR DEMOCRACY IN MEXICO THE MESSAGE WE KEEP COMING BACK TO SAYS RICARDO PASCOE A CARDENAS CAMPAIGN OFFICIAL IS THAT MEXICO NEEDS MORE DEMOCRACY IF IT'S TO CONTINUE TO PROGRESS AND THAT MEXICO WON'T GET IT IF THE PRI IS ALLOWED TO CONTINUE ITS MORE THAN SIX DECADES IN POWER 9310180126 931018 WESTERN GERMAN PRICES FALL WIESBADEN GERMANY WESTERN GERMAN WHOLESALE PRICES FELL 05 IN SEPTEMBER FROM AUGUST AND 05 FROM SEPTEMBER LAST YEAR ACCORDING TO THE FEDERAL STATISTICS OFFICE THE DECLINE WAS SHARPER THAN ANALYSTS HAD EXPECTED WHOLESALE PRICES WERE SEEN EDGING DOWN AN AVERAGE 03 IN SEPTEMBER FROM AUGUST AND 03 FROM A YEAR EARLIER AS WELL SIGNIFICANT PRICE DROPS WERE REGISTERED AMONG POTATOES FRESH VEGETABLES FROZEN MEATS HEATING OIL ROLLED STEEL AND CERTAIN FUELS INCREASES WERE NOTED AMONG FRESH FRUITS EGGS GRAINS AND SOME CHEMICALS 9310180125 931018 CARLISLE RETAILERS FILES FOR CHAPTER 11 SHIELD AFTER CREDIT IS FROZEN ASHTABULA OHIO CARLISLE RETAILERS INC OHIO'S OLDEST FAMILYRUN DEPARTMENT STORE CHAIN FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE BANKRUPTCY CODE AFTER ITS PRINCIPAL LENDER FROZE ITS CREDIT ITS 14 STORES REMAIN OPEN THE LENDER NBD BANK OF DETROIT COULDN'T BE REACHED TO COMMENT LATE FRIDAY CARLISLE SAID IT'S NEGOTIATING WITH A NEW LENDER NORWEST BANK MINNESOTA NA AND EXPECTS TO REACH AN AGREEMENT SOON CARLISLE SAID IT HAD USED LESS THAN HALF OF ITS 2 MILLION CREDIT LINE WHEN NBD FROZE ITS CREDIT STRAPPED FOR CASH THE CHAIN WAS SLOWER TO PAY VENDORS CAUSING SOME TO WITHHOLD SHIPMENTS NEEDED FOR THE CRUCIAL CHRISTMAS SEASON UNDER BANKRUPTCY PROTECTION CARLISLE EXPECTS TO RECEIVE THE GOODS CARLISLE FOUNDED IN 1868 HAS BEEN TROUBLED SINCE LAST YEAR WHEN A WEAK MIDWESTERN ECONOMY FORCED IT TO LAY OFF SOME WORKERS AND DISCONTINUE ITS FURNITURE AND FURNISHINGS BUSINESS SALES SLUMPED FURTHER THIS SPRING AND FALL AFTER THE CHAIN NARROWED ITS MERCHANDISE SELECTION TO FOCUS ON MOREUPSCALE LINES INCLUDING ESTEE LAUDER AND LIZ CLAIBORNE INSTEAD CUSTOMERS WERE LOOKING FOR MORE TRADITIONAL FASHION AND A BROADER SELECTION A SPOKESMAN SAID CARLISLE HAS SINCE BROADENED ITS SELECTIONS AND IS NOW SEEING SOLID IMPROVEMENTS IN SALES THE SPOKESMAN SAID BUT FOR THE FIRST EIGHT MONTHS OF ITS FISCAL YEAR WHICH ENDS FEB 1 1994 SALES ARE DOWN 10 HE SAID 9310180124 931018 TARMAC PLC RIGHTS OFFERING LONDON BRITISH BUILDINGMATERIALS AND CONSTRUCTION COMPANY TARMAC PLC SAID 886 OF NEW SHARES OFFERED IN A SEPTEMBER RIGHTS ISSUE HAVE BEEN TAKEN THE COMPANY SAID 163 MILLION SHARES HAVE BEEN ACCEPTED IN SEPTEMBER TARMAC ANNOUNCED A 215 MILLION 326 MILLION RIGHTS ISSUE ON A 1FOR4 BASIS EACH NEW SHARE WAS PRICED AT 120 PENCE 182 APIECE THE FRIDAY ANNOUNCEMENT FROM TARMAC CORRECTS THURSDAY'S STATEMENT THAT SHAREHOLDERS SUBSCRIBED TO 873 OF THE STOCK AVAILABLE THE RIGHTS ISSUE 9310180123 931018 BIC SALES ROSE IN FIRST 9 MONTHS PARIS BIC SA SAID SALES FOR THE FIRST NINE MONTHS OF 1993 ROSE 26 FROM A YEAR EARLIER TO 471 BILLION FRANCS 8257 MILLION ON A COMPARABLE STRUCTURE AND CONSTANT EXCHANGERATE BASIS THE FRENCH MAKER OF DISPOSABLE PENS CIGARETTE LIGHTERS AND RAZORS SAID SALES WOULD HAVE RISEN 6 BIC'S GUY LAROCHE DIVISION SAW A 29 PLUNGE IN SALES TO 312 MILLION FRANCS 547 MILLION DURING THE PERIOD WHILE THE BIC BRAND DIVISION REGISTERED A 7 SALES INCREASE TO 408 BILLION FRANCS FRENCH COMPANIES ARE REQUIRED TO POST SALES FIGURES 9310180122 931018 WHO'S NEWS GREAT ATLANTIC & PACIFIC TEA CO GREAT ATLANTIC & PACIFIC TEA CO MONTVALE NJ MICHAEL ROURKE 58 YEARS OLD WAS ELECTED SENIOR VICE PRESIDENT COMMUNICATIONS AND CORPORATE AFFAIRS MR ROURKE WAS PREVIOUSLY VICE PRESIDENT CORPORATE AFFAIRS OF THIS GROCERYSTORE CHAIN WHICH IS 52 HELD BY TENGELMANN GROUP OF GERMANY WAYNE HARRIS 54 FORMERLY VICE PRESIDENT OPERATIONS FOR THE NEW YORK METROPOLITAN AREA WAS NAMED SENIOR VICE PRESIDENT NORTHEAST US OPERATIONS 9310180121 931018 TRAINING OF WORKERS HURT BY TRADE DRAWS CRITICISM IN REPORT WASHINGTON A LABOR DEPARTMENT PROGRAM FOR TRAINING WORKERS UNEMPLOYED BECAUSE OF INTERNATIONAL TRADE IS FALLING SHORT OF ITS GOAL AN INTERNAL REPORT SAYS THE STUDY BY THE AGENCY'S INSPECTOR GENERAL RESTATES A THEME OF LABOR SECRETARY ROBERT REICH THAT SOCALLED TARGETED JOB TRAINING AND WORKER ASSISTANCE ARE INEFFECTIVE MR REICH IS SET TO UNVEIL A PROGRAM THAT WILL CONSOLIDATE A HOST OF SERVICES FOR THE UNEMPLOYED INTO A CENTRALIZED ONESTOP SHOPPING CENTER WHERE WORKERS CAN COME REGARDLESS OF HOW THEY LOST THEIR JOBS THE STUDY CONTENDS THAT THE TRADEADJUSTMENTASSISTANCE PROGRAM FELL SHORT OF MEETING THE TRAINING AND REEMPLOYMENT GOALS IT WAS SET UP TO ACCOMPLISH THE INSPECTOR GENERAL SAID FOR EXAMPLE FEWER THAN FOUR IN 10 WORKERS ENROLLED IN THE PROGRAM FOUND NEW JOBS THAT PAID OR HAD THE POTENTIAL TO PAY WAGES EQUAL TO 80 OF THEIR FORMER JOBS ALTHOUGH THE PROGRAM IS DESIGNED TO TRAIN WORKERS ONLY ABOUT HALF THE PEOPLE RECEIVING FEDERAL FUNDS ENROLLED IN APPROVED TRAINING PROGRAMS ONLY TWO OF 10 FOUND POSITIONS RELATED TO THE TRAINING AND THOUGH THE LAW REQUIRES WORKERS TO ENROLL IN APPROVED TRAINING PROGRAMS TO RECEIVE PAYMENTS WORKERS WHO DIDN'T WANT TRAINING WERE ALMOST ALWAYS GRANTED WAIVERS FROM THE TRAINING REQUIREMENT THE REPORT SAID YET THEY STILL GOT PAID MR REICH HAS SAID FREQUENTLY THAT HE WANTS TO PULL THE AGENCY BACK FROM SUCH TARGETED TRAINING PROGRAMS BUT HE RECENTLY ANNOUNCED IN A BOW TO POLITICAL REALITY A NEW 100 MILLION SPECIFIC PROGRAM FOR WORKERS DISPLACED BY THE NORTH AMERICAN FREE TRADE AGREEMENT 9310180120 931018 INTERNATIONAL JAPAN'S PROPOSAL ON RICE IMPORTS MAY SIGNAL CHANGE BY JACOB M SCHLESINGER AND JATHON SAPSFORD STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN'S OFFER TO EASE ITS LONGSTANDING BAN ON RICE IMPORTS MAY BE AN EARLY SIGN THAT THE NATION'S CHANGING POLITICS ARE INDEED CHANGING POLICIES THE JAPANESE GOVERNMENT'S INFORMAL PROPOSAL WHICH LEAKED INTO THE PRESS LAST WEEK IS PART OF A LASTDITCH MULTILATERAL EFFORT TO SALVAGE WORLD FREETRADE TALKS THE CONCESSION WHICH US OFFICIALS CONFIRMED RECEIVING REVERSES JAPAN'S FUNDAMENTAL POSITION THROUGH SEVEN YEARS OF NEGOTIATIONS WHEN TOKYO REFUSED TO DISCUSS EVEN THE POSSIBILITY OF OPENING THE RICE MARKET THE SHIFT COMES JUST OVER TWO MONTHS AFTER THE LIBERAL DEMOCRATIC PARTY A STAUNCH DEFENDER OF THE NATION'S INFLUENTIAL FARM BLOC LOST POWER FOR THE FIRST TIME IN 38 YEARS TO BE SURE JAPAN HAS YET TO ACTUALLY LIFT THE SYMBOLICALLY IMPORTANT PROHIBITION NOR WILL IT NECESSARILY END UP DOING SO DOMESTIC POLITICAL OPPOSITION TO ALTERING THE POLICY REMAINS STRONG EVEN WITHIN THE NEW SEVENPARTY RULING COALITION A SHARP PUBLIC OUTCRY COULD FORCE JAPANESE NEGOTIATORS IN THE GENEVABASED GENERAL AGREEMENT ON TARIFFS AND TRADE TO WITHDRAW THEIR SUGGESTION WHICH JAPANESE LEADERS STILL REFUSE TO PUBLICLY CONFIRM THERE IS SOME FEAR THAT THE CONTROVERSIAL OFFER IF MISHANDLED OVER THE NEXT FEW WEEKS COULD SCUTTLE CHANCES FOR BROADER POLITICAL REFORM AND MIGHT EVEN BRING DOWN THE GOVERNMENT ANY JAPANESE MOVE IS ALSO DEPENDENT ON OTHER COUNTRIES SUCH AS FRANCE MAKING SIMILAR DIFFICULT DECISIONS TO CURB GOVERNMENT PROTECTION FOR FARMERS WITHOUT SUCH A COMPREHENSIVE AGREEMENT JAPAN WOULD LIKELY PULL ITS OFFER OFF THE TABLE THE US FOR ITS PART SAYS JAPAN'S PROPOSAL DOESN'T GO FAR ENOUGH AND WASHINGTON IS CALLING FOR AN EVEN GREATER OPENING OF JAPAN'S RICE MARKET STILL BOTH THE SUBSTANCE AND STYLE OF JAPAN'S NEW FEELERS OFFER SOME ENCOURAGEMENT FOR THE US AND OTHER TRADING PARTNERS LONG FRUSTRATED WITH JAPAN'S INTRANSIGENCE ON RICE AND OTHER POLICIES ONE REASON JAPAN'S RICE IMPORT POLICY HAS BEEN SO DIFFICULT TO CHANGE IS THAT THE NATION'S ELECTORAL SYSTEM FAVORS RURAL DISTRICTS GIVING SOME FARMERS THREE TIMES THE VOTING CLOUT OF SOME URBAN RESIDENTS PRIME MINISTER MORIHIRO HOSOKAWA'S GOVERNMENT IS PROMOTING A MAJOR OVERHAUL OF JAPAN'S ELECTION SYSTEM THAT WOULD AMONG OTHER THINGS REDUCE THE OUTSIZED CLOUT OF THE DWINDLING FARM POPULATION MR HOSOKAWA IS PUSHING FOR A PARLIAMENTARY VOTE ON THOSE PROPOSALS IN THE NEXT FEW WEEKS SOME OFFICIALS FEAR THAT A PUBLIC REVERSAL OF JAPAN'S RICE POLICY COULD IMPERIL THE FRAGILE CONSENSUS IN FAVOR OF THE POLITICAL REFORM BILLS SOME PRESS REPORTS SAID THE LDP WOULD ISSUE A STATEMENT REAFFIRMING ITS OPPOSITION TO EASING THE RICE IMPORT BAN AND MIGHT TRY TO FORCE A VOTE IN THE PARLIAMENT ON THE ISSUE HOPING TO CAUSE SPLITS IN THE GOVERNMENT BUT EVEN THE LDP IS DIVIDED ON THE MATTER AND SUCH A CHALLENGE COULD CAUSE RIFTS IN THE OPPOSITION AS WELL THE TIMING OF JAPAN'S OFFER TO THE US IS ALSO SIGNIFICANT JAPAN HAS OFTEN MADE TRADE CONCESSIONS TO THE US IN THE PAST DECADE BUT USUALLY UNDER TREMENDOUS PRESSURE AND ONLY AT THE LAST POSSIBLE MOMENT JAPAN'S OFFER APPARENTLY DESIGNED IN PART TO PUSH THE TALKS FORWARD MAY BE A SIGN OF MR HOSOKAWA'S DESIRE TO MOVE BEYOND JAPAN'S REACTIVE APPROACH TO FOREIGN POLICY IN ADDITION MR HOSOKAWA APPARENTLY BELIEVES JAPAN WILL BE ABLE TO WIN BETTER CONDITIONS ON RICE IF IT TAKES THE INITIATIVE THE YOMIURI SHIMBUN NEWSPAPER REPORTED 9310180119 931018 FOSTER'S BRITISH UNIT PLANS TO CUT 700 JOBS OVER NEXT 18 MONTHS SPECIAL TO THE WALL STREET JOURNAL LONDON COURAGE LTD THE BREWING ARM IN THE UNITED KINGDOM OF AUSTRALIABASED FOSTER'S BREWING GROUP LTD SAID IT PLANS TO CUT 700 JOBS IN THE NEXT 18 MONTHS COURAGE SAID THE JOBS WILL BE SHED ACROSS THE COMPANY'S 35 SITES BUT THAT NONE OF ITS BREWERIES OR OTHER SITES WILL CLOSE THE COMPANY CURRENTLY EMPLOYS ABOUT 5500 PEOPLE THE UK BREWING INDUSTRY HAS BECOME INCREASINGLY VOLATILE AND COMPETITIVE DUE TO THE CUMULATIVE EFFECT OF FALLING BEER CONSUMPTION INCREASED EXCISE DUTY IMPORTS AND RETAILER CONCENTRATION SAID NICK BRYAN COURAGE UK MANAGING DIRECTOR THESE FACTORS PRESENT A FORMIDABLE CHALLENGE TO THE FUTURE PROSPERITY OF THE INDUSTRY AND THE NEED FOR INVESTMENT IS GREATER THAN AT ANY TIME IN OUR HISTORY HE SAID ADDING THAT THE JOB CUTS ARE VITAL IF WE ARE TO SECURE THE LONGTERM GROWTH REQUIRED FOR SUCCESS IN THE FUTURE HE SAID THAT IN THE NEXT YEAR COURAGE WILL INVEST HEAVILY IN MARKETING FOSTER'S AND JOHN SMITH'S BEER A COMPANY SPOKESMAN SAID THE UK BEER MARKET IS SHRINKING BY ABOUT 3 A YEAR HE DECLINED TO GIVE SALES DETAILS BUT SAID COURAGE HAS GAINED MARKET SHARE IN THE PAST SIX TO NINE MONTHS AS A RESULT OF INCREASED MARKETING 9310180117 931018 NATIONAL MEDICAL ADDS TO RESERVE FOR LEGAL COSTS RESULTS FOR LATEST QUARTER ARE REVISED TO SHOW A LOSS OF 408 MILLION BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC ADDED 250 MILLION TO A PRETAX RESERVE FOR UNUSUAL LITIGATION AND REVISED TO A NET LOSS OF 408 MILLION ITS RESULTS FOR ITS FIRST QUARTER ENDED AUG 31 THE RESERVE ADDITION REFLECTS IN LARGE MEASURE THE HOSPITAL COMPANY'S RECENT SETTLEMENT OF TWO INSURANCE COMPANY LAWSUITS FOR AS MUCH AS 125 MILLION BECAUSE OF THOSE AGREEMENTS NATIONAL MEDICAL SAID IT NOW BELIEVES IT CAN REASONABLY ESTIMATE THE AMOUNTS THAT MAY BE PAID TO RESOLVE OTHER PENDING LITIGATION HOWEVER THE ESTIMATE DON'T INCLUDE ANY PROVISION FOR PAYMENTS RELATED TO VARIOUS STATE AND FEDERAL INVESTIGATIONS OF THE COMPANY INCLUDING A CRIMINAL PROBE BY THE JUSTICE DEPARTMENT NEITHER THE OUTCOME OF THE INVESTIGATIONS NOR THE AMOUNT OF LIABILITIES ARISING FROM THEM CAN BE DETERMINED NOW THE COMPANY SAID ATTORNEYS FROM NATIONAL MEDICAL AND THE JUSTICE DEPARTMENT HAVE BEEN DISCUSSING THE CASE BUT IT'S PREMATURE TO DESCRIBE THE CONTACTS AS SETTLEMENT NEGOTIATIONS NATIONAL MEDICAL HAS SAID JUSTICE DEPARTMENT OFFICIALS HAVE DECLINED TO COMMENT IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION NATIONAL MEDICAL ALSO DISCLOSED CHANGES TO ITS BANK LOAN AGREEMENTS INCLUDING TIGHTER RESTRICTIONS ON DIVIDEND PAYMENTS ANALYSTS SAID IT APPEARED THE PAYOUT WAS SAFE AS LONG AS THE NEW RESERVES PROVE ADEQUATE AND EARNINGS DON'T DETERIORATE THE QUARTERLY DIVIDEND IS 12 CENTS A SHARE TODD RICHTER AN ANALYST AT DEAN WITTER DISCOVER INC SAID NATIONAL MEDICAL'S ABILITY TO MAINTAIN ITS DIVIDEND WILL DEPEND ON TWO FACTORS THE LIABILITY TO THE FEDERAL GOVERNMENT AND THE ABILITY TO KEEP EARNINGS UP GIVEN THE MAGNITUDE OF THE COMPANY'S PROBLEMS THESE DOESN'T APPEAR TO BE EXTREMELY ONEROUS RESTRICTIONS HE ADDED RAISING A CAUTIONARY FLAG HOWEVER NATIONAL MEDICAL WARNED THAT ITS BUSINESS IS UNDER PRESSURE PATIENT VOLUMES CASH FLOWS AND OPERATING RESULTS AT THE COMPANY'S PRINCIPAL HEALTHCARE BUSINESSES ARE BEING ADVERSELY AFFECTED BY THE LAWSUITS INVESTIGATIONS AND CLAIMS THE FILING SAID ANALYSTS ARE CONCERNED THAT PUBLICITY ABOUT PROBLEMS IN THE COMPANY'S PSYCHIATRIC HOSPITALS COULD DAMAGE ITS CORE ACUTECARE HOSPITAL BUSINESS THE REVISED FIRSTQUARTER NET LOSS WAS EQUAL TO 25 CENTS A SHARE EXCLUDING A ONETIME ACCOUNTINGCHARGE BENEFIT THE LOSS WAS 1009 MILLION OR 61 CENTS A SHARE THE COMPANY HAD REPORTED NET INCOME OF 1022 MILLION OR 62 CENTS A SHARE BOLSTERED BY THE ACCOUNTING BENEFIT THE RESERVE ADDITIONS COME ON TOP OF A 65 MILLION RESERVE ESTABLISHED IN THE PRECEDING QUARTER FOR VARIOUS LEGAL COSTS NATIONAL MEDICAL SAID FRIDAY IT HAS SO FAR SPENT ROUGHLY 20 MILLION OF THAT AMOUNT INCLUDING SUMS SPENT BEFORE THE RESERVE WAS ANNOUNCED NATIONAL MEDICAL STILL FACES A THIRD INSURER LAWSUIT THREE SHAREHOLDER CASES AND ABOUT 100 PSYCHIATRICMALPRACTICE SUITS TWO OF THE SHAREHOLDER SUITS WERE DISCLOSED FOR THE FIRST TIME IN THE FRIDAY FILING THEY ACCUSE THE COMPANY AND VARIOUS OFFICERS OF MAKING FALSE AND MISLEADING STATEMENTS ABOUT FINANCIAL DATA THAT WERE BASED UPON A NUMBER OF ALLEGED ILLEGAL PRACTICES AT MANY OF NME'S PSYCHIATRIC FACILITIES THE SUITS WERE FILED SHORTLY AFTER THE FEDERAL BUREAU OF INVESTIGATION'S RAID ON MORE THAN 20 NATIONAL MEDICAL FACILITIES WE BELIEVE WE HAVE STRONG DEFENSES TO THESE CASES SAID CHRISTI SULZBACH SENIOR VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL 9310180116 931018 BUSINESS BRIEF TEXAS JUDGE RULES IN FAVOR OF DUPONT IN FUNGICIDE LAWSUIT WILMINGTON DEL DUPONT CO RECORDED A VICTORY IN A BENLATE TRIAL WHEN A TEXAS JUDGE RULED AGAINST A PECAN GROWER WHO CLAIMED THE COMPANY'S FUNGICIDE HAD CAUSED DAMAGE PARKER COUNTY DISTRICT JUDGE JAMES O MULLIN RULED THAT PLAINTIFFS CR AND SHIRLEY ROBINSON WHO HAD SOUGHT ABOUT 900000 IN ACTUAL DAMAGES PLUS PUNITIVE DAMAGES WERE ENTITLED TO NOTHING AND SHOULD PAY ALL COURT COSTS JUDGE MULLIN'S RULING LAST WEEK MARKS THE FIRST TIME THAT A BENLATE TRIAL RESULTED IN A RULING IN FAVOR OF DUPONT THE COMPANY FACES HUNDREDS OF SIMILAR LAWSUITS AND POTENTIALLY HUGE LIABILITIES FROM FARMERS AND NURSERY OWNERS NATIONWIDE WHO ALLEGE THAT THE PRODUCT DAMAGED THEIR CROPS DUPONT HAS WITHDRAWN BENLATE DF FROM THE MARKET BUT ASSERTS THAT EXTENSIVE TESTS PROVE THE PRODUCT DOESN'T CAUSE DAMAGE JUDGE MULLIN'S RULING LAST WEEK APPEARS TO MARK THE FIRST TIME A BENLATE TRIAL RESULTED IN A RULING IN FAVOR OF DEFENDANT DUPONT 9310180114 931018 INTERNATIONAL FORTE WILL ASSUME HOTEL MANAGEMENT FOR ITALY'S CIGA BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL FORTE PLC WILL TAKE OVER MANAGEMENT OF THE CIGA SPA LUXURY HOTEL CHAIN AS PART OF A RESTRUCTURING OF THE TROUBLED ITALIANBASED COMPANY CONTROLLED BY THE AGA KHAN FORTE THE UK'S LARGEST HOTEL COMPANY SAID IT HAD AGREED IN PRINCIPLE WITH CIGA'S LEAD BANKERS TO CONTRIBUTE 33 MILLION 50 MILLION IN CASH AND CERTAIN OF ITS OWN LUXURY HOTELS VALUED AT ABOUT 125 MILLION AS PART OF THE ITALIAN COMPANY'S RESTRUCTURING IN RETURN FORTE WILL TAKE OVER MANAGEMENT OF CIGA'S 35 LUXURY HOTELS AND HOLD A MAJORITY INTEREST IN THE RESTRUCTURED CIGA OPERATING COMPANY THE UK COMPANY DID NOT DISCLOSE WHICH OF ITS HOTELS WOULD BE INCLUDED IN THE DEAL CIGA'S MASSIVE DEBT WILL BE TRANSFERRED INTO A SEPARATE HOLDING COMPANY IN WHICH THE CIGA OPERATING COMPANY WILL HAVE A SMALL STAKE THE ANNOUNCEMENT APPEARED TO STUN CIGA A SPOKESMAN FOR THE COMPANY SAID IT LEARNED OF FORTE'S ROLE IN ITS RESTRUCTURING ONLY HOURS BEFORE THE ANNOUNCEMENT HE DECLINED FURTHER COMMENT UNTIL AFTER A MEETING OF THE CIGA BOARD SCHEDULED FOR TODAY FORTE CHAIRMAN ROCCO FORTE SAID HIS COMPANY HAS BEEN IN TALKS SINCE JUNE WITH MEDIOBANCA WHICH IS CHARGED BY CIGA BANKERS WITH THE HOTEL CHAIN'S RESTRUCTURING HE SAID THE DEAL INVOLVED LITTLE INVESTMENT AND LITTLE DOWNSIDE BUT NOTED THAT THE AGREEMENT IS NOT YET FINAL WE ARE JUST GOING INTO AN EXTENDED DUE DILIGENCE PROCESS RIGHT NOW HE SAID DURING THE LATE 1980S CIGA SPENT HEAVILY TO BUY LUXURY HOTELS EXPANDING FROM 20 HOTELS TO 35 INCLUDING SUCH GEMS AS THE PALACE HOTEL IN MADRID BUT ITS HUGE DEBTS BECAME A BURDEN WHEN THE GULF WAR AND RECESSION DROVE AWAY HOTEL GUESTS WILLING TO PAY 300 OR MORE FOR A ROOM IN MAY NERVOUS BANKS CONVINCED A COURT TO FREEZE THE ASSETS OF CIGA AND FIMPAR THE AGA KHAN'S HOLDING COMPANY THAT HAS A 5001 STAKE IN CIGA WHILE THE DEAL ANNOUNCED FRIDAY WILL DO LITTLE DAMAGE TO THE FINANCES OF THE AGA KHAN WHOSE PERSONAL WEALTH IS ESTIMATED AT MORE THAN 1 BILLION IT WILL SHUT HIM OUT OF A COMPANY THAT HE HELPED TURN INTO EUROPE'S LEADING LUXURY HOTEL GROUP THE AGA KHAN IS OUT OF IT MR FORTE SAID EXISTING SHAREHOLDERS WILL WIND UP WITH A SMALL PORTION OF THE RESTRUCTURED COMPANY THE AGA KHAN SPIRITUAL LEADER OF THE WORLD'S ISMALI MUSLIMS HAS SAID HE WOULD NOT PUT ANY MORE OF HIS OWN MONEY INTO THE AILING HOTEL CHAIN AND INSISTED HE HAS NOT GIVEN HIS PERSONAL GUARANTEE FOR ANY OF CIGA'S LOANS FOR FORTE THE DEAL BOOSTS ITS PRESENCE IN CONTINENTAL EUROPE AND IN PARTICULAR IN ITALY WHERE CIGA HAS 22 HOTELS MR FORTE WHOSE FATHER EMIGRATED FROM ITALY CALLED THE COMPANY'S GROWING INVOLVEMENT THERE A NATURAL 9310180113 931018 PATTEN EXPECTS ITS PERSHARE EARNINGS FOR THE QUARTER TO BE FLAT OR UP SLIGHTLY BY SANDRA WARD SPECIAL TO THE WALL STREET JOURNAL PATTEN CORP SAID IT EXPECTS TO REPORT FLAT OR MODESTLY HIGHER PERSHARE EARNINGS FOR ITS FISCAL SECOND QUARTER ON HIGHER REALESTATE SALES WIDENING GROSS MARGINS AND REDUCED DEBT COSTS AFTER A RESTRUCTURING OF ITS BALANCE SHEET IN JULY HARRY S PATTEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE BOCA RATON FLA LAND DEVELOPER EXPECTS TO REPORT NET INCOME OF 16 MILLION TO 18 MILLION OR EIGHT CENTS TO 10 CENTS A SHARE FOR THE QUARTER ENDED SEPT 26 COMPARED WITH NET INCOME OF 14 MILLION OR 8 CENTS A SHARE A YEAR EARLIER PATTEN PAID A 4 STOCK DIVIDEND AUG 16 FOLLOWING THE LIFTING OF RESTRICTIVE COVENANTS SET BY CREDITORS AFTER THE COMPANY POSTED NINE STRAIGHT QUARTERS OF PROFITS IT'S THE FIRST DIVIDEND THE COMPANY HAS PAID SINCE FISCAL 1990 REALESTATE SALES ROSE 4 IN THE LATEST QUARTER TO 18 MILLION FROM 172 MILLION IN A YEAR EARLIER AND GROSS PROFIT MARGINS FOR THE QUARTER JUMPED TO 54 FROM 45 CASH FLOW REMAINS STRONG MR PATTEN SAID AND LOOKS VERY BRIGHT FOR THE NEXT FIVE YEARS WE'RE PRETTY WELL SET FOR CAPITAL HE SAID EXPLAINING THAT THE COMPANY HAS A 25 MILLION CREDIT FACILITY PATTEN HAS BEEN EXPANDING ITS GEOGRAPHIC BASE INTO PARTS OF THE SOUTHEAST SOUTHWEST MIDWEST AND WEST WITH SALES STRENGTH IN COLORADO AND TEXAS THE COMPANY PLANS TO OPEN SALES OFFICES IN NEW MEXICO AND MISSOURI SOON PATTEN TYPICALLY BUYS LAND IN RURAL AREAS SUBDIVIDES IT INTO FIVEACRE PARCELS AND SELLS THE PARCELS FOR 20000 TO 22000 ON AVERAGE THROUGH A SEPARATE UNIT IT FINANCES MORTGAGES FOR THE BUYERS IN ADDITION PATTEN IS ENTHUSIASTIC ABOUT THE HOUSE BUILDERREFERRAL PROGRAM IT BEGAN IN JUNE UNDER WHICH IT REFERS LAND BUYERS TO LOCAL BUILDING CONTRACTORS FOR A COMMISSION TYPICALLY 3 TO 5 OF THE COST OF THE HOUSE THE TYPICAL COST OF HOUSES ON PATTEN PROPERTIES IS 70000 TO 200000 MR PATTEN SAID WE THINK THIS PROGRAM WILL REALLY DEVELOP SAID THE EXECUTIVE WHO THINKS THE ONESTOP SHOPPING ASPECT WILL APPEAL TO CUSTOMERS HE ALSO NOTES THAT THE PROFILE OF THE AVERAGE BUYER HAS CHANGED SINCE THE 1980S THE AVERAGE AGE OF BUYERS HAS INCREASED AND MORE BUYERS ARE BUILDING ON THE PROPERTY IMMEDIATELY RATHER THAN HOLDING THE LAND AS AN INVESTMENT PATTEN IS PREPARING A FURTHER EXPANSION OF ITS BUSINESS BY DIPPING INTO THE 3 BILLION TIMESHARE MARKET WITH A DEVELOPMENT IN GATLINBURG TENN A RESORT AT THE BASE OF THE SMOKY MOUNTAIN NATIONAL FOREST THE COMPANY EXPECTS ITS TENNESSEE TIMESHARE SALES TO START IN THE FIRST QUARTER OF FISCAL 1995 9310180111 931018 WHO'S NEWS QUADREX CORP QUADREX CORP GAINESVILLE FLA VINCENT C SCHOEMEHL JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BIOENERGY INTERNATIONAL LC A SUBSIDIARY OF QUADREX WAS NAMED CHIEF EXECUTIVE OFFICER AND CHAIRMAN OF THIS RECYCLING ENGINEERING COMPANY MR SCHOEMEHL 46 YEARS OLD SUCCEEDS WILLIAM B DERRICKSON WHO RESIGNED RECENTLY FOLLOWING A SERIES OF QUARTERLY LOSSES THE QUADREX BOARD ALSO ELECTED JOHN PAGE 48YEAROLD PRESIDENT OF BRITMAR CORP IN CLEARWATER FLA A DIRECTOR BOOSTING THE NUMBER ON THE BOARD TO EIGHT 9310180110 931018 COX ADVANCE BACK QVC BID FOR PARAMOUNT EACH MEDIA FIRM TO INVEST 500 MILLION BACKING QVC IN TAKEOVER FIGHT BY LAURA LANDRO AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL AFTER WEEKS OF NEGOTIATIONS PRIVATELY HELD MEDIA GIANTS COX ENTERPRISES INC AND ADVANCE PUBLICATIONS INC AGREED TO INVEST 500 MILLION EACH IN QVC NETWORK INC CONTINGENT ON A SUCCESSFUL QVC ACQUISITION OF PARAMOUNT COMMUNICATIONS INC THE STOCK INVESTMENT BY COX AND ADVANCE APPEARS TO FURTHER STRENGTHEN QVC'S HAND IN ITS BID FOR PARAMOUNT AND TO REDUCE THE LIKELIHOOD THAT QVC WILL SEEK FURTHER FINANCIAL BACKING FROM CABLE MOGUL JOHN MALONE CHIEF EXECUTIVE OFFICER OF TELECOMMUNICATIONS INC MR MALONE LAST WEEK STUNNED THE COMMUNICATIONS INDUSTRY BY AGREEING TO SELL TCI TO BELL ATLANTIC CORP TCI PREVIOUSLY AGREED TO REACQUIRE LIBERTY MEDIA CORP WHICH OWNS 222 OF QVC AND IS BACKING QVC'S BID FOR PARAMOUNT PARAMOUNT OFFICIALS DECLINED TO COMMENT YESTERDAY THE ENTERTAINMENT AND PUBLISHING CONCERN IS PROCEEDING WITH PLANS TO BE ACQUIRED BY VIACOM INC THOUGH THE PARAMOUNT BOARD IS ALSO EVALUATING THE QVC OFFER QVC'S BID FOR PARAMOUNT WAS VALUED ON FRIDAY AT 97 BILLION SIGNIFICANTLY HIGHER THAN VIACOM'S OFFER FOR PARAMOUNT VALUED AT 79 BILLION AFTER QVC MADE ITS RIVAL OFFER VIACOM LINED UP A TOTAL OF 18 BILLION IN NEW INVESTMENT FROM NYNEX CORP AND BLOCKBUSTER ENTERTAINMENT CORP BUT HAS YET TO RAISE ITS BID QVC JUST TURNED UP THE PRESSURE ON VIACOM ANOTHER NOTCH SAID JOHN TINKER A MEDIA ANALYST WITH FURMAN SELZ INC QVC ALSO HAD TALKS WITH BELLSOUTH CORP BUT THOSE DISCUSSIONS ENDED OVER THE REGIONAL TELEPHONE CONCERN'S INSISTENCE ON BEING A BIGGER PLAYER IN THE BID FOR PARAMOUNT QVC INDICATED TALKS WITH BELLSOUTH MIGHT RESUME BUT BELLSOUTH WHICH ALSO TALKED TO VIACOM ABOUT JOINING ITS PARAMOUNT BID HAS RAISED THE POSSIBILITY THAT IT MIGHT MAKE ITS OWN BID OR JOIN ANOTHER GROUP IN A BID QVC'S TWO NEW PARTNERS BRING POWERFUL NEW ALLIES INTO MR DILLER'S CAMP ATLANTABASED NEWSPAPER AND CABLE GIANT COX HAD DISCUSSED JOINING VIACOM'S BID AND WAS KNOWN TO BE NEGOTIATING WITH QVC BUT THE INVESTMENT BY THE SECRETIVE NEWHOUSE FAMILY'S ADVANCE CAME AS A SURPRISE ADVANCE OWNS CABLETV SYSTEMS RANDOM HOUSE A BOOK PUBLISHER NEWSPAPERS AND THE CONDE NAST MAGAZINE EMPIRE BOTH COX AND ADVANCE HAVE STAYED ON THE SIDELINES DURING THE MEDIA MERGER FRENZY OF RECENT YEARS BUT BOTH ARE FINANCIALLY STRONG POWERHOUSES IN THEIR OWN MARKETS WITH STRONG FRANCHISES AND PLENTY OF CASH TO INVEST THE HEADS OF BOTH COMPANIES SAID YESTERDAY THEY ARE BETTING ON MR DILLER'S ABILITY TO MOVE A COMBINED QVCPARAMOUNT INTO THE FOREFRONT OF THE MULTIMEDIA AGE QVC SAID YESTERDAY THAT THE PREVIOUSLY ANNOUNCED INVESTMENTS BY ITS PARTOWNERS COMCAST CORP AND LIBERTY MEDIA WILL BE MODIFIED TO DUPLICATE THE TERMS OF THE AGREEMENTS WITH COX AND ADVANCE PREVIOUSLY LIBERTY AND COMCAST HAD AGREED TO INVEST 500 MILLION EACH UNDER THE NEW TERMS EACH OF THE FOUR INVESTMENT PARTNERS WILL PURCHASE 250 MILLION OF QVC COMMON STOCK AT 60 A SHARE AND 250 MILLION OF CONVERTIBLE EXCHANGEABLE PREFERRED STOCK THE CONVERTIBLE PREFERRED STOCK BEARS A 6 DIVIDEND THAT MAY BE PAID IN CASH OR QVC COMMON STOCK AT QVC'S OPTION AND IS CONVERTIBLE INTO QVC COMMON STOCK AT 6545 A COMMON SHARE AT QVC'S OPTION THE CONVERTIBLE PREFERRED STOCK MAY BE EXCHANGED FOR CONVERTIBLE SUBORDINATED DEBT WHICH WOULD HAVE THE SAME FINANCIAL TERMS AS THE PREFERRED STOCK BOTH ADVANCE AND COX WILL HAVE THE RIGHT TO NAME ONE MEMBER TO A POSTACQUISITION QVC BOARD IF QVC DOESN'T WIN OUT IN THE PARAMOUNT BID ADVANCE AND COX CAN STILL INVEST 100 MILLION IN QVC COMMON STOCK AT 60 A SHARE IN A STATEMENT LAST NIGHT VIACOM SAID THE CONDITIONAL NATURE OF THE INVESTMENT AND THE ONEROUS TERMS IMPOSED BY THE INVESTORS HIGHLIGHT THE FUNDAMENTAL DIFFERENCES IN THE STRENGTH AND DIVERSITY OF THE BUSINESSES OF QVC AND VIACOM VIACOM REITERATED THAT ITS COMBINATION WITH PARAMOUNT OFFERS FAR MORE REWARDS TO PARAMOUNT SHAREHOLDERS THAN A QVC ACQUISITION AND VOWED ANEW THAT THE VIACOMPARAMOUNT DEAL WOULD BE COMPLETED QVC STOCK CLOSED FRIDAY AT 58 A SHARE UP 25 CENTS IN TRADING ON THE NATIONAL OVERTHECOUNTER MARKET IN ADDITION TO LIBERTY'S 222 STAKE IN QVC COMCAST OWNS 126 AND MR DILLER OWNS A 125 STAKE THE THREE ALSO HAVE AN AGREEMENT TO VOTE AS A BLOCK ON THE BOARD IF QVC ACQUIRES PARAMOUNT THEN LIBERTY AND COMCAST EACH WOULD OWN SLIGHTLY LESS THAN 10 OF THE NEW COMPANY AND COX ADVANCE AND MR DILLER WOULD EACH OWN SLIGHTLY LESS THAN 5 TCI'S MR MALONE HAS DISTANCED HIMSELF FROM THE QVC BID FOR PARAMOUNT SAYING THAT LIBERTY WOULD EVEN DIVEST ITS QVC STAKE IF THAT WOULD MAKE IT EASIER FOR MR DILLER TO COMPLETE HIS BID VIACOM HAS FILED AN ANTITRUST SUIT NAMING TCI AND OTHERS INVOLVED IN THE QVC BID AS PART OF AN ALLEGED CABAL CONTROLLED BY MR MALONE AND ONE PERSON IN THE VIACOM CAMP YESTERDAY SUGGESTED THAT THE ADDITION OF COX AND ADVANCE BOTH WITH MAJOR CABLETV OPERATIONS ONLY AGGRAVATES POTENTIAL ANTITRUST PROBLEMS VIACOM SAID LAST WEEK THAT TCI'S AGREEMENT WITH BELL ATLANTIC RAISES MORE TROUBLING ANTITRUST QUESTIONS SOME ON WALL STREET EXPECT MR DILLER TO ULTIMATELY TURN TO THE NEW BELL ATLANTICTCI POWERHOUSE FOR CASH IF NECESSARY MR DILLER HOWEVER HAS MADE IT CLEAR THAT HE CURRENTLY HAS NO INTEREST IN DOING SO AND YESTERDAY FOR THE FIRST TIME HE PUBLICLY LAMBASTED VIACOM'S ATTEMPTS TO ATTACK QVC AND PAINT HIM AS A MERE EXTENSION OF MR MALONE ATTEMPTS TO DENIGRATE QVC'S BUSINESSES TOGETHER WITH THE POSITIONING OF ME AND MY OTHER PARTNERS AND COLLEAGUES AS PAWNS OF ANYONE ARE ONLY DESIGNED FOR ONE THING TO TAKE ATTENTION AWAY FROM THE OBVIOUS DIFFERENCE IN THE PROPOSALS AND ALLOW VIACOM TO COMPLETE ITS ACQUISITION OF PARAMOUNT COMMUNICATIONS AT LESS THAN ITS FAIR VALUE MR DILLER SAID IN A STATEMENT MR DILLER ALSO ASSAILED VIACOM'S EFFORTS TO DISCREDIT QVC ON WALL STREET AND PORTRAY THE HOMESHOPPING COMPANY AS A POOR FIT WITH PARAMOUNT WHEN COMPARED TO VIACOM WHOSE OPERATIONS INCLUDE CABLE CHANNELS MTV AND NICKELODEON AND CABLE SYSTEMS QVC IS THE COMPANY WHOSE VISION IS APPROPRIATE TO STEER PARAMOUNT THROUGH THIS REVOLUTION HE SAID COX AND ADVANCE APPARENTLY AGREE DONALD NEWHOUSE PRESIDENT OF ADVANCE CITED THE UNIQUE RESOURCES OF A QVCPARAMOUNT COMBINATION AND THE LEADERSHIP ABILITY AND EXPERIENCE OF MR DILLER JAMES C KENNEDY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF COX ENTERPRISES SAID HE IS OPTIMISTIC THAT THE COMBINATION OF QVC AND PARAMOUNT WILL ONLY INCREASE IN VALUE OVER THE YEARS AND WILL MORE THAN JUSTIFY THIS INVESTMENT QVC HAS PRESENTED PARAMOUNT'S BOARD WITH LETTERS OF COMMITMENT FOR 3 BILLION IN BANK FINANCING BUT OFFICIALS CLOSE TO THE VIACOM CAMP SAID PARAMOUNT IS WAITING FOR QVC TO CLARIFY SOME FINANCIAL AND REGULATORY ISSUES THE ISSUES AREN'T OF SUFFICIENT MAGNITUDE TO CAUSE PARAMOUNT TO DELAY THE PROCESS BUT THEY DO HAVE TO BE ANSWERED SAID ONE PARAMOUNT ADVISER MR DILLER SAID YESTERDAY THAT QVC WILL ANSWER ALL OF PARAMOUNT'S LEGITIMATE QUESTIONS AND DEMONSTRATE WHY THERE IS NO IMPEDIMENT TO OUR SWIFT CONCLUSION OF THE TRANSACTION HE ADDED WE RECOGNIZE THE DIFFICULTIES PARAMOUNT IS STRUGGLING WITH AS A RESULT OF THE MERGER AGREEMENT IT SIGNED WITH VIACOM WE WILL HOWEVER OPPOSE THE CONTINUED RAISING OF STRAW MEN WHOSE ONLY PURPOSE IS TO CONFUSE THE ISSUE TO THE BENEFIT OF A FEW INDIVIDUALS AND THE DETRIMENT OF ALL PARAMOUNT SHAREHOLDERS ANITA SHARPE CONTRIBUTED TO THIS ARTICLE