FROM WHAT JANE AUSTEN ATE AND CHARLES DICKENS KNEW BY DANIEL POOL SIMON & SCHUSTER 1993 THE TAXES IN 19TH CENTURY ENGLAND WERE IMPORTANT NOT ONLY BECAUSE OF THE BITE THEY PUT ON PEOPLE BUT BECAUSE OF THEIR INDIVIDUAL SOCIAL CONSEQUENCES UNTIL REPEALED IN 1861 FOR EXAMPLE THE TAX ON PAPER HELPED TO KEEP BOOKS SCARCE AND EXPENSIVE SOAP WAS TAXED UNTIL 1853 WITH THE CONSEQUENCE OF THE POOR PERSONAL HYGIENE WHICH MAY HAVE CONTRIBUTED TO SOME OF THE EPIDEMICS OF TYPHUS AND OTHER DISEASES THAT PERIODICALLY DEVASTATED ELEMENTS OF THE POPULATION IN FACT A BLACK MARKET SPRANG UP IN SOAP AND IT WAS SMUGGLED IN FROM IRELAND WHERE THERE WAS NO TAX TO THE WESTERN SHORE OF ENGLAND THE TAX ON WINDOWS MENTIONED IN JANE AUSTEN'S MANSFIELD PARK WAS PERHAPS THE MOST PERNICIOUS ONE SINCE EVEN A HOLE CUT IN A WALL FOR VENTILATION WAS COUNTED AS A WINDOW MAKING AMONG OTHER THINGS FOR DARK HOUSES FOR THE POOR THE FACT THAT A FAMILY WAS TAXED 28S FOR EACH MALE SERVANT IN 1812 BACHELORS 48S HELPED TO STEER PEOPLE TOWARD WOMENSERVANTS BOTH THIS AND THE TAX ON CARRIAGES WERE BASED ON THE GOVERNMENT'S CORRECT ASSUMPTION THAT THESE WERE TWO OF THE LEADING WAYS TO GET REVENUES FROM THE WEALTHY 9310150011 931015 MEDICAL DEBATE PHYSICIANS ARE SPLIT BY AGE AND REGION ON HEALTH REFORMS WHITE HOUSE STANDS TO GAIN AS AMA RIFT WEAKENS LOBBYING AGAINST PLAN HERDING A BUNCH OF CATS' BY GEORGE ANDERS AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL TYLER TEXAS PRESIDENT CLINTON'S HEALTH PLAN HAS CREATED A RIFT AMONG PHYSICIANS THAT IS MAKING SUSTAINED LOBBYING EFFORTS AGAINST MAJOR PARTS OF THE PROPOSED REFORMS DIFFICULT WHILE IT IS STILL CONCEIVABLE THAT DOCTORS COULD SETTLE THEIR DIFFERENCES THE GAP WITHIN THE MEDICAL COMMUNITY APPEARS TO BE WIDENING NOT NARROWING THAT MEANS THAT DOCTORS PROBABLY WON'T BE ABLE TO MOUNT A UNIFIED CHALLENGE TO THE CLINTON PLAN A PROSPECT THAT COULD MAKE THE WHITE HOUSE'S SELLING JOB MUCH EASIER SOME HARDLINERS IN THE MEDICAL COMMUNITY FEAR THE PLAN WITH ITS EMPHASIS ON BIG ALLIANCES THAT WILL BUY HEALTH COVERAGE FOR MILLIONS OF AMERICANS WOULD BE A MAJOR STEP TOWARD A NATIONALIZED HEALTH SYSTEM THAT WOULD LIMIT DOCTORS' INCOME AND AUTONOMY FIGHTING CHANGE THE HARDEST ARE OLDER PHYSICIANS IN SOUTHERN STATES WHO WORRY THAT LONGESTABLISHED WAYS OF DOING BUSINESS ARE ABOUT TO BE DRASTICALLY DISRUPTED BUT DESPITE THE PUBLIC PERCEPTION THAT DOCTORS ARE SOLIDLY ARRAYED AGAINST THE PLAN ANOTHER FACTION OF PHYSICIANS WELCOMES THE CLINTON REFORMS ON THE BELIEF THAT THEY CAN HOLD DOWN COSTS AND PROVIDE UNIVERSAL COVERAGE WITHOUT HURTING THE QUALITY OF CARE THE PLAN IS PLAYING WELL AMONG YOUNGER DOCTORS ON BOTH COASTS AND IN THE UPPER MIDWEST PARTICULARLY UPBEAT ARE DOCTORS WHO ALREADY WORK IN MANAGEDCARE SYSTEMS WHICH COVER LARGE BLOCKS OF PATIENTS AND IMPOSE STRINGENT COST CONTROLS THE SPLIT IS PUTTING SERIOUS STRAINS ON THE 291000MEMBER AMERICAN MEDICAL ASSOCIATION EVEN THOUGH THE PERCENTAGE OF DOCTORS BELONGING TO THE AMA HAS STEADILY DECLINED IN THE PAST 20 YEARS IT IS STILL REGARDED AS THE MOST POWERFUL HEALTHCARE LOBBY BECAUSE OF ITS ATTEMPTS TO SPEAK FOR ALL PHYSICIANS SO FAR THE AMA'S LEADERS HAVE TRIED TO STRADDLE THE DIVIDE AMA EXECUTIVES FIRST PRAISED MR CLINTON'S BROAD GOAL OF UNIVERSAL HEALTH COVERAGE THEN QUESTIONED DETAILS OF HIS PLAN PARTICULARLY THOSE PROVISIONS THAT MIGHT AFFECT PEOPLE'S ABILITY TO CHOOSE THEIR DOCTOR IN AN INTERVIEW JAMES TODD THE AMA'S EXECUTIVE VICE PRESIDENT DECLARED THE AVERAGE RANKANDFILE PHYSICIAN SHARES THE ME CONCERNS THAT WE SHARE STILL AMA OFFICIALS ACKNOWLEDGE MIXED FEELINGS AMONG DOCTORS INCLUDING THE 55 OF THE NATION'S 640000 DOCTORS WHO DON'T BELONG TO THE AMA THERE MAY BE SOME DISAGREEMENT ABOUT THE BEST WAY TO REACH THIS SHARED VISION DR TODD CONCEDES IN RECENT SPEECHES HE HAS INVOKED AN OLD SAYING THAT TRYING TO GET A LARGE GROUP OF DOCTORS TO AGREE ON ANYTHING IS LIKE HERDING A BUNCH OF CATS THE AMA IN FACT FINDS ITSELF AT ODDS WITH THE NATION'S SECONDLARGEST DOCTORS' GROUP THE AMERICAN COLLEGE OF PHYSICIANS WHICH REPRESENTS 77000 INTERNALMEDICINE SPECIALISTS A YEAR AGO THE INTERNISTS' GROUP MADE HEADLINES BY ENDORSING THE IDEA OF A NATIONAL BUDGET FOR PRIVATE AND PUBLIC HEALTH SPENDING SOMETHING THE AMA HAS SAID IT UNEQUIVOCALLY OPPOSES A FEW WEEKS AGO THE INTERNISTS' GROUP WENT A STEP FURTHER AND ENDORSED THE CLINTON HEALTH PLAN WITHOUT THE MANY RESERVATIONS THAT THE AMA HAS EXPRESSED TO SEE HOW WIDE THE GAP IN INDIVIDUAL DOCTORS' ATTITUDES HAS BECOME IT HELPS TO LOOK AT TWO CRUCIAL STATES IN THE HEALTHREFORM DEBATE TEXAS AND CALIFORNIA TEXAS IS A BASTION OF CONSERVATIVE FREEMARKET VIEWS CALIFORNIA IS A HOTBED OF CENTRALLY RUN MEDICAL SYSTEMS AS DOCTORS FROM THESE TWO STATES SPEAK OUT THEY WILL REPRESENT COMPETING TUGS FOR SLOWER OR FASTER REFORM OF HEALTHCARE DELIVERY THE BIGGEST STICKING POINT IN TEXAS IS PRESIDENT CLINTON'S ASSUMPTION THAT GOVERNMENT SHOULD GUIDE HEALTHSYSTEM REFORM THE 32000MEMBER TEXAS MEDICAL ASSOCIATION RECENTLY ISSUED A 13POINT MANIFESTO TAKING FIRM STANDS ON ISSUES SUCH AS PROTECTING DOCTORS' AUTONOMY AND REINING IN MANAGEDCARE ORGANIZATIONS EVEN SO SAYS ROBERT TENERY HEAD OF THE GROUP I GET CALLS FROM A LOT OF OUR MEMBERS WHO ARE VERY ANGRY ABOUT REFORM THEY FEEL WE'VE SOLD OUT MANY TEXAS DOCTORS CONTEND THAT THE CLINTON SYSTEM IS BOUND TO CREATE MORE BUREAUCRACY AND LIMIT THEIR FREEDOM TO TREAT PATIENTS IN CORSICANA ABOUT 50 MILES SOUTH OF DALLAS 70YEAROLD SURGEON LOUIS GIBSON RAILS AGAINST THE NATIONAL HEALTH BOARD AND HEALTH ALLIANCES THAT CLINTON OFFICIALS WANT TO CREATE THEY ARE BRINGING IN A MASSIVE UNTRIED BUREAUCRACY TO DEAL WITH A SYSTEM WHOSE ONLY MAJOR PROBLEM IS COST NOT QUALITY OR ACCESS DR GIBSON SAYS ON A RECENT EVENING IN JACKSONVILLE TEXAS SEVERAL DOCTORS CLUSTERED IN A HOSPITAL HALLWAY TO VENT THEIR FRUSTRATIONS WITH FEDERAL INTRUSION I'M ALWAYS CONCERNED WHEN THE GOVERNMENT TRIES TO FIX SOMETHING SAID INTERNIST JOSEPH CUNNINGHAM YOU CAN'T WRITE ENOUGH LAWS TO MAKE A GOOD DOCTOR ALL YOU CAN DO IS HASSLE PEOPLE TRYING TO DO A GOOD JOB ADDED OBSTETRICIAN TIM FIELDS I CAN'T THINK OF ANYTHING THAT THE GOVERNMENT HAS TAKEN OVER AND RUNS EFFICIENTLY THE POST OFFICE THE RAILROADS THE IRS IN HIS SPEECH TO CONGRESS LAST MONTH PRESIDENT CLINTON ASSERTED THAT HIS NEW SYSTEM WILL SIMPLIFY THE FORMS THAT DOCTORS MUST FILL OUT BUT WHILE DOCTORS ELSEWHERE THINK THAT COULD HAPPEN MANY IN TEXAS DON'T IT'S GOING TO AMOUNT TO THE LAWYER'S RELIEF ACT DR GIBSON QUIPS IN RURAL TEXAS DOCTORS HAVE A DIFFERENT WORRY WHETHER THE WHITE HOUSE MODEL OF MANAGED COMPETITION IN WHICH RIVAL HEALTH PLANS VIE FOR CUSTOMERS HAS ANY RELEVANCE TO THEM ONE WEST TEXAS DOCTOR 64YEAROLD JIM BOB BRAME OF ELDORADO SAYS POOR FARMERS SOMETIMES PAY FOR CARE WITH EGGS AND TOMATOES AND WOULD HAVE TO DRIVE MORE THAN 40 MILES IF THEY DIDN'T WANT TO BE TREATED IN THE TOWN'S 16BED HOSPITAL THERE IS ABSOLUTELY NO WAY THAT MANAGED COMPETITION WOULD MAKE SENSE IN HIS DISTRICT DR BRAME SAYS YET HE FEARS THAT URBAN MEDICAL GROUPS WILL SOMEHOW LAY CLAIM TO HIS PATIENTS AND HE SAYS HE IS FRUSTRATED THAT IN THE 239PAGE WORKING DRAFT OF THE CLINTON HEALTH PLAN LESS THAN 1 PERTAINS TO RURAL CARE OTHER TEXAS DOCTORS SAY THEY WILL BE HURT BY PRESIDENT CLINTON'S PLANS TO SAVE MONEY BY CUTTING BACK ON THE MEDICARE AND MEDICAID PROGRAMS FOR THE ELDERLY AND POOR RICHARD CASEN A FAMILY PRACTITIONER WHO WORKS ABOUT 100 MILES SOUTH OF DALLAS COMPLAINS THAT HE GETS JUST 1113 IN MEDICARE REIMBURSEMENT FOR A 25MILE TRIP TO SEE ELDERLY PATIENTS IN A NEARBY TOWN I'M WORKING FOR MINIMUM WAGE OR LESS ON THOSE PATIENTS DR CASEN SAYS HE WORRIES THAT FURTHER CUTS WILL MAKE IT EVEN LESS REWARDING TO TREAT THE ELDERLY AT THE TOP END OF THE TEXAS MEDICAL MARKET THERE ARE JITTERS TOO DONALD POHL IS ONE OF THE HOUSTON AREA'S MOST SUCCESSFUL UROLOGISTS SPECIALIZING IN SURGERY TO UNDO VASECTOMIES IN TEXAS' FREEWHEELING CURRENT CLIMATE DR POHL RECRUITS PATIENTS BY ADVERTISING ON BILLBOARDS AS FAR AWAY AS SUBURBAN DALLAS 200 MILES AWAY CALL 1713REVERSE HIS ADS DECLARE MONEYBACK GUARANTEE BUT UNDER THE PROPOSED CLINTON SYSTEM MANY PATIENTS COULDN'T SEE DR POHL UNLESS THEIR REGULAR PRIMARYCARE DOCTORS RECOMMENDED HIM IN CALIFORNIA BY CONTRAST MANY DOCTORS ARE EXCITED NOT FRIGHTENED BY THE PRESIDENT'S OVERHAUL PLAN MOST OF THE STATE'S DOCTORS ARE USED TO BARGAINING WITH BIG PURCHASING NETWORKS OF EMPLOYERS SIMILAR TO THE HEALTH ALLIANCES THAT MR CLINTON WANTS TO SET UP IN FACT A MAJORITY OF CALIFORNIA PHYSICIANS ALREADY WORK FOR THE TYPES OF MANAGEDCARE NETWORKS THAT THE WHITE HOUSE AIMS TO ENCOURAGE WE DON'T HAVE ANY PROBLEM WITH MANAGED CARE AS A CONCEPT SAYS EUGENE OGROD CHAIRMAN OF THE 38000MEMBER CALIFORNIA MEDICAL ASSOCIATION ON PRICE CONTROLS A TOPIC THAT EVOKES SPUTTERS OF INDIGNATION FROM THE AMA LEADERSHIP THE CMA HAS BROKEN AWAY TOO WHILE IT DOESN'T TOTALLY AGREE WITH THE WHITE HOUSE PROPOSALS ON PRICE CONTROLS THE CALIFORNIA GROUP SAID IN A PROPOSAL LAST YEAR THAT IT COULD TOLERATE HEALTHINSURANCE RATE CAPS IF THE MARKET FAILED TO CONTROL PRICES THERE IS LESS SUSPICION AMONG CALIFORNIA DOCTORS TOO THAT THE WHITE HOUSE PLAN WOULD HURT PATIENTS' ABILITY TO PICK THEIR DOCTORS HOWARD LANG AN OBSTETRICIANGYNECOLOGIST AND FORMER PRESIDENT OF THE CMA ARGUES THAT THE CLINTON PLAN WOULD ACTUALLY WIDEN PEOPLE'S MEDICAL CHOICES BECAUSE IT WOULD LET THEM PICK THEIR HEALTH PLAN INSTEAD OF SIMPLY ENROLLING IN THE ONE CHOSEN BY THEIR EMPLOYERS PATIENTS DON'T HAVE A HELL OF A LOT OF FREE CHOICE NOW HE SAYS WHILE SOME PRIVATEPRACTICE DOCTORS IN CALIFORNIA FEAR THAT REFORM COULD HURT THEIR INCOMES SALARIED PHYSICIANS IN THE STATE'S BIG MANAGEDCARE PROGRAMS GENERALLY DON'T HAVE SUCH CONCERNS I'D SAY IT'S NICE TO PRACTICE MEDICINE WITH SOME DIVORCE FROM GREED SAYS ROBERT HOGAN 45 A SAN DIEGO FAMILYPRACTICE DOCTOR WITH KAISER PERMANENTE THE NATION'S LARGEST GROUP HEALTH PLAN DR HOGAN WON'T SAY WHAT HE EARNS BUT COMPARABLE DOCTORS AT KAISER TYPICALLY EARN A LITTLE MORE THAN 100000 A YEAR ABOUT IN LINE WITH NATIONAL AVERAGES FOR FAMILYPRACTICE WORK DR HOGAN PREDICTS THAT IF THE CLINTON PLAN PASSES MY LIFE WILL CONTINUE AS IT IS WITH THE POSSIBLE OPPORTUNITY PERHAPS TO SERVICE A FEW MORE MEMBERS OF THE COMMUNITY THAN I OTHERWISE WOULD HAVE SOME YOUNGER CALIFORNIA DOCTORS ARE ALREADY ON CAREER PATHS THAT CLOSELY CORRESPOND TO THE NEW SYSTEM THAT PRESIDENT CLINTON WANTS WILSON FUNG A 30YEAROLD FAMILY PRACTITIONER SAYS MANAGED CARE IS BASICALLY THE ONLY WAY I KNOW DR FUNG DID HIS RESIDENCY WITH A MANAGEDCARE NETWORK AND NOW IS AFFILIATED WITH PACIFIC PHYSICIAN SERVICES INC A GROUP OF 250 SALARIED DOCTORS WHO CONTRACT WITH ABOUT 30 HEALTHMAINTENANCE ORGANIZATIONS IN SOUTHERN CALIFORNIA DR FUNG IS AN AMA MEMBER BUT DOESN'T HAVE ANY QUARRELS TO PICK WITH MANAGED CARE AS FAR AS CONTROLLING HEALTHCARE COSTS IT'S A VERY SENSIBLE APPROACH HE SAYS THAT ISN'T TO SAY DR FUNG LIKES EVERYTHING THAT THE WHITE HOUSE IS PROPOSING HE THINKS THE MEASURES TO CURB MALPRACTICE LIABILITY COSTS SHOULD BE STRONGER HE ALSO IS WARY OF THE CAPS ON PRIVATE HEALTHINSURANCE PREMIUMS THAT WOULD BE IMPOSED UNDER THE CLINTON PLAN STILL DR FUNG SAYS I GENERALLY BELIEVE IN MOST OF THE PRINCIPLES HE'S DISCUSSING IN A HANDFUL OF AREAS SUCH AS REINING IN MALPRACTICE COSTS THE AMA MAY FIND BROAD AGREEMENT AMONG ITS MEMBERS BOTH IN CONSERVATIVE AND LIBERAL STATES ANOTHER LIKELY AREA OF AGREEMENT DOCTORS' DESIRE TO HAVE GREATER LATITUDE IN JOINTLY NEGOTIATING RATES WITH MANAGEDCARE GROUPS WITHOUT RUNNING THE RISK OF ANTITRUST PROSECUTION ON FUNDAMENTAL ISSUES OF HEALTHSYSTEM REFORM THOUGH THE AMA'S ROLE MAY BE MORE PROBLEMATIC I'D HATE TO BE IN THEIR POSITION BECAUSE THEY HAVE SUCH A WIDE FRONT TO DEFEND SAYS KIM ROSS CHIEF LOBBYIST OF THE TEXAS MEDICAL ASSOCIATION I THINK THEIR TENT IS TOO BIG THAT IS EXACTLY THE SENTIMENT FELT BY TONY FALCON A FAMILY PRACTICE DOCTOR IN RIO GRANDE CITY ON THE TEXASMEXICO BORDER DR FALCON MUST CONTEND WITH POVERTYRELATED DISEASES SUCH AS LEPROSY MALARIA AND TYPHUS WHICH ARE PRACTICALLY UNKNOWN IN THE REST OF THE US HE ALSO PROVIDES CARE FOR VAST NUMBERS OF UNDOCUMENTED ALIENS WHO GENERALLY CAN'T PAY AND WHO WOULDN'T BE COVERED IN THE NEW WHITE HOUSE HEALTH PLAN AND HE MUST CONTEND WITH SOME OF THE NATION'S LOWEST REIMBURSEMENT RATES FOR TREATING POOR PATIENTS ON MEDICAID SUCH AS JUST 700 FOR ALL CARE ASSOCIATED WITH DELIVERING A BABY THE AMA TRIES TO REPRESENT EVERYBODY SAYS DR FALCON WHO FEELS A BIT NEGLECTED BOTH BY THE CLINTON PLAN AND THE NATION'S MAIN DOCTORS' GROUP BUT WE'RE SO DIFFERENT 9310150009 931015 CHEMICAL CHASE MOVE TO SELL EQUITY BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WALL STREET WILL BE FACING ANOTHER SET OF COMPETITORS IN PEDDLING STOCKS IF CHASE MANHATTAN CORP AND CHEMICAL BANKING CORP HAVE THEIR WAY CHEMICAL HAS SOUGHT FEDERAL RESERVE BOARD APPROVAL TO UNDERWRITE AND SELL EQUITY AND CHASE IS PREPARING TO SEEK REGULATORY CONSENT OFFICIALS AT THE TWO BANKS SAY BANKS DON'T NORMALLY SEEK SUCH APPROVAL UNLESS THEY HAVE INDICATIONS THAT THE FED WILL GRANT THEIR REQUEST THE MOVES REFLECT BANKS' CONTINUED INTEREST IN PUSHING INTO TRADITIONAL INVESTMENT BANKING CHASE AND CHEMICAL HOPE UNDERWRITING POWERS WILL PUT THEM ON EQUAL FOOTING WITH THE LIKES OF JP MORGAN & CO THE MODEL MOST COMMERCIAL BANKS USE IN ENTERING SECURITIES ACTIVITIES MORGAN RECEIVED FED APPROVAL IN 1990 TO UNDERWRITE STOCK OFFERINGS AN ACTIVITY THAT HAD BEEN PROHIBITED FOR COMMERCIAL BANKS AND THEIR AFFILIATES SINCE A LAW KNOWN AS THE GLASSSTEAGALL ACT TOOK EFFECT IN THE 1930S OTHER BANKS ARE EXPECTED TO SEEK APPROVAL AS WELL ALREADY NINE BANKS RANGING FROM BIG CANADIAN BANKS TO TINY DAUPHIN DEPOSIT CORP IN HARRISBURG PA HAVE RECEIVED THE FED'S BLESSING IT'S A NECESSARY INGREDIENT IN THE OVERALL RELATIONSHIP OF HELPING LARGE CLIENTS WITH THEIR FUNDING NEEDS SAID HARRY TOTONIS PARTNER AT THE CONSULTING FIRM OF BOOZ ALLEN & HAMILTON INC THE MOVES ARE PART OF A BROADER SHIFT TAKING PLACE IN BANKING MARKED BY THE ENTRY OF SEVERAL BANKS INTO THE CORPORATE BOND MARKET BIG MONEYCENTER BANKS THINK THEY NEED TO DIVERSIFY THEIR BUSINESS AWAY FROM WHAT HAS BEEN A PRETTY RISKY AFFAIR LENDING MONEY THEY WANT TO BE WHOLESALE FINANCIAL INTERMEDIARIES CAPABLE OF OFFERING STOCKS BONDS LOANS CASH MANAGEMENT FOREIGN EXCHANGE AND DERIVATIVES IN SHORT ANYTHING A CORPORATE CLIENT WOULD WANT BANKS ARE SAYING WHY WOULDN'T WE PROVIDE THE FULL BOAT OF PRODUCTS AND SERVICES' SAID MR TOTONIS THEY WANT TO LEVERAGE CREDIT NEEDS TO SELL ADDITIONAL PRODUCTS OF COURSE BY THE TIME THE BANKS HAVE RECEIVED APPROVAL BY THE FEDERAL RESERVE BOARD THE PHENOMENAL BOOM IN STOCK SALES COULD HAVE ENDED DURING THE FIRST NINE MONTHS OF 1993 539 COMPANIES CAME TO MARKET RAISING 40 BILLION THROUGH INITIAL PUBLIC STOCK OFFERINGS THE SAME AMOUNT SOLD IN ALL OF LAST YEAR ACCORDING TO SECURITIES DATA CO BUT BANKS SAY THEY'RE IN IT FOR THE LONG HAUL AND AREN'T JUMPING IN FOR THE QUICK BUCK IN FACT NATIONSBANK CORP RECEIVED UNDERWRITING APPROVAL IN THE SUMMER BUT IS COOLING ITS HEELS UNTIL THE CHARLOTTE NC BANKING CONCERN BECOMES MORE SUCCESSFUL SELLING BONDS OFFICIALS SAY BANKERS TRUST NEW YORK CORP A LEADER IN TRADING SECURITIES AND DERIVATIVES AROUND THE WORLD ALSO HAS GONE SLOW IN BUILDING ITS UNDERWRITING EFFORT IT PROBABLY REFLECTS A FAIRLY CAUTIOUS APPROACH ON OUR PART SAID ROBERT C HOLLMEYER CHIEF OPERATING OFFICER OF NATIONSBANC CAPITAL MARKETS INC IF WE GET A GOOD RECEPTION IN THE DEBT MARKET WE'LL FEEL GOOD ABOUT UNDERWRITING EQUITY PAUL BRANDOW SENIOR VICE PRESIDENT AND HEAD OF CHASE SECURITIES INC SAYS IT WILL BE EASIER TO WIN DEBT DEALS FROM CORPORATIONS IF THEY KNOW THE FIRM ALSO HAS UNDERWRITING POWERS CORPORATIONS WANT TO KNOW THAT AN UNDERWRITER OF ONE TYPE OF SECURITIES CAN ALSO SELL AND MAKE MARKETS IN OTHER SECURITIES BUT IT'S BEEN A SLOW GRINDING EFFORT BY BANKS TO MUSCLE INTO THE CLUBBY WORLD OF BOND SALES ASIDE FROM JP MORGAN BANKS HAVE HAD MIXED SUCCESS THEY'VE CRACKED THE COMMERCIAL PAPER MARKET AND HIGHYIELD BOND MARKET BUT NOT THE MUCH LARGER INVESTMENTGRADE CORPORATE BOND MARKET AND THERE WILL BE SIGNIFICANT UPFRONT COSTS WITHOUT ANY CERTAINTY OF SUCCESS SIMPLY HIRING SAVVY INVESTMENT BANKERS WILL COST MILLIONS INDEED CHASE AND CHEMICAL ALREADY WENT SHOPPING ON WALL STREET TO HIRE A NUMBER OF WELLKNOWN NAMES IN ITS DEBT SALES EFFORT THEY ALSO HAVE TO BUILD A RESEARCH ARM ANOTHER COSTLY VENTURE IT'S A TOUGH THING TO MAKE A BIG GO OF IT SAID JUDAH KRAUSHAAR BANKING ANALYST AT MERRILL LYNCH & CO THE ENTRY COSTS ARE PROHIBITIVE AND YOU MIGHT BE STUCK WITH THE CRUMBS OF THE BUSINESS BUT LONGER TERM BANKS COULD POSE A COMPETITIVE THREAT TO WALL STREET THE BIG BANKS COULD OFFER A SORT OF ONESTOP SHOPPIG AND COULD UNDERCUT THE ATTRACTIVE FEES WALL STREET EARNS TO SELL STOCK RIGHT NOW UNDERWRITERS CHARGE FEES OF AS MUCH AS 6 OF A DEAL'S SIZE TO COMPLETE AN OFFERING ONE CAN ARGUE AS MORE GET INTO BUSINESS SOME OF THE FEES WILL BE COMPETED AWAY SAID MR TOTONIS 9310150007 931015 JOINT VENTURE PLANS TELEPHONE BACKBONE' TO SERVE PHILIPPINES MANILA A TELECOMMUNICATIONS JOINT VENTURE OFFICIALLY ANNOUNCED THURSDAY REPRESENTS THE BIGGEST CHALLENGE YET TO THE VIRTUAL MONOPOLY OF PHILIPPINE LONG DISTANCE TELEPHONE CO GLOBE TELECOM GMCR INC AND INTERNATIONAL COMMUNICATIONS CORP OR ICC TELECOMS AGREED TO SET UP A JOINT COMPANY TO BUILD AND OPERATE A 50 MILLION TELEPHONE BACKBONE THAT WOULD CONNECT LOCAL EXCHANGES TO OTHER PARTS OF THE COUNTRY AND THE REST OF THE WORLD CURRENTLY ONLY PLDT OPERATES A NATIONWIDE NETWORK IN THE PAST THAT HAS ALLOWED PLDT TO DOMINATE THE INDUSTRY BY CONTROLLING INTERCONNECTION BETWEEN ITS LINES AND OTHER CARRIERS BUT PRESIDENT FIDEL RAMOS EARLIER THIS YEAR ORDERED MANDATORY INTERCONNECTION IN HIS DRIVE TO OPEN UP THE INDUSTRY THE DETAILS OF THE JOINT VENTURE STILL AREN'T CLEAR THE TWO COMPANIES BOTH CONTROLLED BY POWERFUL FILIPINO BUSINESS CLANS WITH FOREIGN PARTNERS AGREED TO PRODUCE A PLAN OF ACTION WITHIN 30 DAYS AFTER WHICH THEY WILL PROBABLY FILE A FORMAL APPLICATION WITH THE NATIONAL TELECOMMUNICATIONS COMMISSION IN ADDITION GLOBE TELECOM WHICH IS 38OWNED BY SINGAPORE TELECOM INTERNATIONAL A SUBSIDIARY OF SINGAPORE TELECOMMUNICATIONS PTE LTD HAS APPLIED ON ITS OWN FOR THE RIGHT TO INSTALL 12 MILLION PHONE LINES NATIONALLY ICC TELECOMS 40OWNED BY TELSTRA CORP OF AUSTRALIA HAS AN APPLICATION PENDING FOR A MILLION LINES BOTH COMPANIES ALSO WANT TO SET UP INDEPENDENTLY INTERNATIONAL GATEWAYS FOR ROUTING LONGDISTANCE CALLS MEANWHILE PLDT ANNOUNCED A JOINT SERVICE WITH MCI COMMUNICATIONS INC OF THE US FOR CHEAPER COLLECT CALLS TO AND FROM THE US 9310150006 931015 BUSINESS BRIEF PPG'S NET FELL 62 ON 25 SALES DROP IN THE THIRD QUARTER PITTSBURGH PPG INDUSTRIES INC SAID THIRDQUARTER NET INCOME DROPPED 62 TO 248 MILLION OR 23 CENTS A SHARE FROM 66 MILLION OR 62 CENTS A SHARE AS THE COMPANY TOOK A 513 MILLION CHARGE TO COVER STREAMLINING IN ITS GLASS OPERATIONS SALES FELL 25 TO 141 BILLION FROM 144 BILLION PPG SAID THIS SUMMER THAT IT WOULD CLOSE TWO GLASS PLANTS BECAUSE OF HIGH COSTS AND WEAK MARKET CONDITIONS BOTH PLANTS WHICH TOGETHER EMPLOYED ABOUT 645 WORKERS WERE BEING STRUCK BY THE ALUMINUM BRICK AND GLASS WORKERS UNION OVER A COMPANY HEALTHCARE COSTSHARING PROPOSAL THE RESTRUCTURING CHARGE WHICH TOTALED ABOUT 48 CENTS A SHARE ALSO COVERED WRITEDOWNS OF INACTIVE FACILITIES THE PENDING SALE OF PPG'S COMMERCIAL CONSTRUCTIONFABRICATION UNIT AND COSTCUTTING IN THE COMPANY'S EUROPEAN OPERATIONS WHERE SALES CONTINUED TO SUFFER BECAUSE OF THE POOR ECONOMY PPG'S STOCK ROSE 375 CENTS OR 06 TO CLOSE AT 65375 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY SEPARATELY PPG SAID IT IS IN DISCUSSIONS WITH SEVERAL INTERESTED PARTIES TO SELL ITS MEDICALINSTRUMENTS BUSINESS FOR A YEAR ANALYSTS HAVE PREDICTED THE COMPANY WOULD UNLOAD THE UNIT AFTER VINCENT A SARNI RETIRED AS CHAIRMAN SOMETHING THAT HAPPENED IN AUGUST HE STARTED THE BUSINESS IN THE MID1980S IN A BID TO DIVERSIFY BUT THE UNIT HAS COST PPG AT LEAST 200 MILLION A SPOKESMAN CALLED THE TIMING OF THE ANNOUNCEMENT COINCIDENTAL THE LATEST QUARTER WAS ALSO AFFECTED BY A HIGHER TAX RATE WHICH CUT EARNINGS BY 76 MILLION OR SEVEN CENTS A SHARE AND THE SETTLEMENT OF LEGAL DISPUTES WHICH COST PPG 3 MILLION OR THREE CENTS A SHARE 9310150005 931015 GENERAL MOTORS SAYS SPORTSUTILITY PLANT WILL AGAIN BE IDLED DETROIT GENERAL MOTORS CORP SAID ITS PONTIAC MICH ASSEMBLY PLANT FOR CHEVROLET BLAZER AND GMC JIMMY SPORTUTILITY VEHICLES WILL BE IDLE AGAIN NEXT WEEK BECAUSE OF SLOW SALES GM SAID FOUR OF ITS CARASSEMBLY PLANTS AND EIGHT TRUCK PLANTS IN THE US AND CANADA WILL WORK OVERTIME SHIFTS NEXT WEEK FORD MOTOR CO SAID IT OPERATED OVERTIME THROUGHOUT THE WEEK AT FOUR CAR FACTORIES AND SEVEN TRUCK FACTORIES IN THE US CHRYSLER CORP SAID SEVEN OF ITS NORTH AMERICAN ASSEMBLY PLANTS ARE SCHEDULED FOR OVERTIME TOMORROW AND NEXT WEEK ALTOGETHER THE 10 US AUTO MAKERS SAID THEY PLANNED TO BUILD 227807 CARS AND TRUCKS THIS WEEK UP 44 FROM THE 218129 VEHICLES BUILT IN THE YEAREARLIER PERIOD 9310150004 931015 WIDER GERMAN DEFICIT PROMPTS A WARNING FROM CENTRAL BANK FRANKFURT THE BUNDESBANK ISSUED NEW WARNINGS ON GERMANY'S WIDENING DEFICITS AS THE GOVERNMENT CONFIRMED THAT THE RECESSION OPENED A 25 BILLION MARK 156 BILLION HOLE IN THE 1993 FEDERAL BUDGET OTMAR ISSING THE CENTRAL BANK'S CHIEF ECONOMIST AND A MEMBER OF ITS POLICYSETTING COUNCIL SAID GERMANY'S FISCAL POLICIES COULD DESTABILIZE THE ECONOMY UNLESS CORRECTED THE UNEXPECTEDLY HIGH COST OF UNIFICATION RECESSION AND THE DRAG OF STRUCTURAL FAULTS IN THE GERMAN SYSTEM HAVE TAKEN THEIR TOLL HE SAID THE BONN GOVERNMENT SAID THE RECESSION COULD COST THE FEDERAL GOVERNMENT AROUND 25 BILLION MARKS IN LOST TAX REVENUE THIS YEAR AS A RESULT THE GOVERNMENT WILL HAVE TO INCREASE ITS NET BORROWING TO NEARLY 70 BILLION MARKS THIS YEAR FROM 386 BILLION MARKS IN 1992 THE PUBLIC SECTOR'S SHARE OF GERMAN GROSS NATIONAL PRODUCT HAS RISEN TO 55 THIS YEAR FROM 47 IN THE PREUNIFICATION YEAR OF 1989 MR ISSING SAID DEFICIT SPENDING HAS SOARED PARTICULARLY WHEN INCLUDING MONEYLOSING RAILWAY AND POSTAL SYSTEMS AS WELL AS GOVERNMENT UNITY PROGRAMS USING THE BROAD CALCULATION MR ISSING SAID GERMANY'S TOTAL PUBLICSECTOR DEFICIT THIS YEAR IS EXPECTED TO RISE TO 230 BILLION MARKS FROM 180 BILLION MARKS IN 1992 PUTTING THE TOTAL AT 75 OF GNP IT ALSO ACCOUNTS FOR 90 OF THE DOMESTIC SAVINGS COMPARED WITH 5 IN 1989 WHEN THE GERMAN PUBLICSECTOR DEFICIT AMOUNTED TO ONLY 05 OF GNP THE BONN GOVERNMENT PLANS TO SLASH SPENDING BY ABOUT 20 BILLION MARKS AND INTRODUCE A NEW TAX ON PETROLEUM PRODUCTS NEXT YEAR AND ADD A NEW SOLIDARITY TAX ON INCOMES IN 1995 TO PREVENT THE FEDERAL DEFICIT FROM DEEPENING 9310150003 931015 KMART CONSIDERS SALE OF 25 INTEREST IN ONE OR MORE OF FOUR SPECIALTY CHAINS BY CHRISTINA DUFF AND MARK HEINZL STAFF REPORTERS OF THE WALL STREET JOURNAL KMART CORP FACING PRESSURE TO FOCUS ON ITS FALTERING CORE DISCOUNTSTORE OPERATIONS IS CONSIDERING THE SALE OF MINORITY STAKES IN ITS SPORTS AUTHORITY BORDERS OFFICEMAX AND BUILDERS SQUARE SPECIALTY CHAINS THOMAS MURASKY THE DISCOUNT RETAILER'S CHIEF FINANICAL OFFICER TOLD FINANCIAL ANALYSTS IN TORONTO YESTERDAY THAT THE NO 2 RETAILER IN THE US IS LIKELY TO SELL 25 STAKES IN ONE OR MORE OF THE CHAINS THROUGH INITIAL PUBLIC OFFERINGS TO BE ANNOUNCED SOMETIME IN THE NEXT FEW MONTHS MR MURASKY ALSO SAID KMART IS DOWN TO THE NITTY GRITTY IN TALKS TO SELL ITS PAYLESS DRUGSTORE CHAIN THE COMPANY HE ADDED STILL HOPES TO GET 1 BILLION FOR THAT UNIT BUT HE WOULDN'T DISCLOSE POTENTIAL BUYERS MR MURASKY'S REMARKS REPRESENT THE FIRST TIME TROY MICH KMART HAS DISCLOSED WHICH UNITS IT IS CONSIDERING SELLING STAKES IN AND WHAT PERCENTAGE OF THOSE UNITS MIGHT BE SOLD IN THE PAST THE COMPANY HAS SAID ONLY THAT IN ADDITION TO TRYING TO SELL PAYLESS IT WAS CONSIDERING SELLING MINORITY INTERESTS IN ONE OR MORE SPECIALTY CHAINS ANALYSTS SAY KMART WHOSE 2430 CORE DISCOUNT STORES HAVE BEEN LOSING MARKET SHARE NEEDS CASH FOR ITS HALFCOMPLETED 3 BILLION RENOVATION OF ITS DISCOUNT STORES MR MURASKY REITERATED THE COMPANY'S FORECAST THAT EARNINGS FLAT FOR FIVE YEARS WON'T MATCH LAST YEAR'S 941 MILLION OR 206 A SHARE MR MURASKY SAID THAT KMART'S SPECIALTY COMPANIES AREN'T BEING FULLY REFLECTED IN THE KMART STOCK PRICE BUT MARGO MCGLADE AN ANALYST WITH PAINEWEBBER CAUTIONED THAT AT LEAST A GOOD PORTION OF THE VALUE OF THE FOUR MINORITY STAKES IS ALREADY REFLECTED IN KMART'S STOCK WHICH WAS TRADING AS LOW AS 19 IN JUNE AND ROSE 50 CENTS YESTERDAY TO CLOSE AT 24 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING IN THE END WHAT'S GOING TO MAKE A DIFFERENCE TO KMART SHAREHOLDERS IS THE PERFORMANCE OF THE DISCOUNT STORES MS MCGLADE SAID SOME RETAIL ANALYSTS HAVE COMPLAINED THAT KMART HAS FOCUSED TOO MUCH MONEY AND TIME ON THE SPECIALTY OPERATIONS WHICH THE COMPANY BEGAN ACQUIRING IN THE EARLY 1980S WHEN THE DISCOUNTSTORE INDUSTRY WAS GETTING CROWDED THE SPECIALTY UNITS WHICH ALSO INCLUDE THE WALDENBOOKS BOOK CHAIN AND PACE MEMBERSHIP WAREHOUSE CLUBS CONTRIBUTED 30 OF KMART'S 377 BILLION IN SALES IN THE FISCAL YEAR ENDED LAST JAN 27 BUT ONLY ABOUT 14 OF ITS TOTAL EARNINGS OF THE FOUR COMPANIES BEING CONSIDERED FOR EQUITYSTAKE SALE ONLY THE INCLUSION OF BUILDERS SQUARE SURPRISED ANALYSTS THE HOMEIMPROVEMENT CHAIN WITH SALES LAST YEAR OF 24 BILLION AND OPERATING PROFIT OF 81 MILLION PLAYS SECOND FIDDLE TO WALL STREET DARLING HOME DEPOT INC AND SOME ANALYSTS THOUGHT KMART WOULD WAIT TO GET A BETTER VALUATION FOR IT IN THE LATEST QUARTER BUILDERS SQUARE'S SALES AT STORES OPENED AT LAST YEAR ROSE ONLY 14 THE OTHER COMPANIES KMART IS CONSIDERING INCLUDE OFFICEMAX AN OFFICESUPPLY CHAIN WITH 528 MILLION IN SALES AND 1 MILLION IN OPERATING PROFIT LAST YEAR SPORTS AUTHORITY A SPORTINGGOODS CHAIN WITH 412 MILLION IN SALES AND 10 MILLION IN OPERATING PROFIT AND BORDERS BOOKS STORES WITH 116 MILLION IN SALES ITS OPERATING PROFIT WASN'T DISCLOSED KMART ACQUIRED BORDERS IN LAST YEAR'S THIRD QUARTER THE SALE OF PAYLESS ANNOUNCED IN AUGUST HAS DRAGGED ON LONGER THAN WALL STREET EXPECTED ONE PERSON FAMILIAR WITH THE SITUATION SAYS MERRILL LYNCH & CO WHICH IS CONDUCTING THE AUCTION IS DOWN TO THREE PROSPECTIVE FINANCIAL BUYERS NONE OF WHICH CAN HIT 1 BILLION COMPANY OFFICIALS WEREN'T AVAILABLE LATE YESTERDAY TO COMMENT 9310150002 931014 WHERE THE BABY BELLS ARE TELECOMMUNICATIONS INC FOR ABOUT 16 BILLION IN STOCK GIVING IT ACCESS TO A VAST ARSENAL OF LUCRATIVE CABLE PROGRAMMING WILL SEPARATELY DELIVER VIDEO PROGRAMMING TO 60000 HOMES IN NJ THROUGH SAMMONS COMMUNICATIONS STAKE IN PRIME MANAGEMENT CO MARKING ITS ENTRY IN CABLE TV VIACOM IS ALSO THE LARGEST CABLE PROVIDER IN THE UK UK ISRAEL ALSO OWNS 50 STAKE IN HAUSER CABLE PROPERTIES IN VIRGINIA WARNER OWNS CABLE PROPERTIES IN UK FRANCE HUNGARY NORWAY SWEDEN 9310150001 931015 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 ARKANSAS POWER & LIGHT CO 175 MILLION OF FIRSTMORTGAGE BONDS DUE OCT 1 2023 PRICED AS 7S AT 98637 TO YIELD 711 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 108 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP ARKANSAS POWER IS AN ENTERGY CORP UNIT ASSOCIATES CORP 300 MILLION OF NOTES DUE OCT 15 2003 PRICED AS 575S AT 99758 TO YIELD 5782 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 56 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF NOTES DUE OCT 22 2003 PRICED AT PAR TO YIELD 578 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 56 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF DEBENTURES DUE OCT 26 1998 PRICED AT PAR TIELD 44 ACCORDING TO MCM CORPORATEWATCH THE YIELD STEPS UP TO 53 AFTER TWO YEARS THE DEBENTURES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC HOUSEHOLD INTERNATIONAL NETHERLANDS BV 125 MILLION OF NOTES DUE OCT 15 1998 PRICED AS 525S AT 9976 TO YIELD 5305 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO HOUSEHOLD IS A HOUSEHOLD INTERNATIONAL INC UNIT JP MORGAN & CO 150 MILLION OF SUBORDINATED NOTES DUE OCT 15 2008 PRICED AS 575S AT 99188 TO YIELD 5832 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 62 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA2 BY MOODY'S AND DOUBLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO NOBLE AFFILIATES INC 150 MILLION OF CONVERTIBLE SUBORDINATED NOTES DUE NOV 1 2003 PRICED AT PAR TO YIELD 425 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS CONVERT INTO COMMON STOCK AT 3665 A 2425 PREMIUM RATED TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO NOBLE AFFILIATES INC 100 MILLION OF SENIOR NOTES DUE OCT 12 2023 PRICED AS 725S AT 98793 TO YIELD 735 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 132 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO REPUBLIC NEW YORK CORP 250 MILLION OF SUBORDINATED NOTES DUE OCT 15 2008 PRICED AS 5875S AT 99558 TO YIELD 592 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC CHILES OFFSHORE CORP 35 MILLION SHARES OF 150 CONVERTIBLE PREFERRED STOCK OFFERED AT 25 EACH ACCORDING TO THE COMPANY THE PREFERRED SHARES ARE CONVERTIBLE INTO 32595 COMMON SHARES EQUIVALENT TO 767 A COMMON SHARE AT ANY TIME SUBJECT TO CERTAIN CONDITIONS AND ADJUSTMENTS IN CERTAIN EVENTS NORTHRIM BANK 600000 COMMON SHARES PRICED AT 875 EACH THROUGH A GROUP OF UNDERWRITERS LED BY WEDBUSH MORGAN SECURITIES OASIS RESIDENTIAL INC INITIAL OFFERING OF 78 MILLION COMMON SHARES PRICED AT 2175 EACH THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO CALIFORNIA 1448 MILLION OF GENERALOBLIGATION VARIOUSPURPOSE REFUNDING BONDS APPARENTLY WON BY A MORGAN STANLEY & CO GROUP THE BONDS ARE RATED DOUBLEA BY MOODY'S EXCEPT FOR THE 2017 MATURITY THAT IS INSURED BY CAPITAL GUARANTY INSURANCE CO AND RATED TRIPLEA CONNECTICUT HEALTH AND EDUCATIONAL FACILITIES AUTHORITY 1108 MILLION OF SERIES C REVENUE BONDS FOR THE ST FRANCIS HOSPITAL & MEDICAL CENTER PRICED BY A SMITH BARNEY SHEARSON INC GROUP YIELDS RANGE FROM 36 IN 1997 TO 518 IN 2023 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P NEW YORK CITY 400 MILLION OF TAXANTICIPATION NOTES TO CS FIRST BOSTON AND 250 MILLION OF NOTES TO GOLDMAN SACHS & CO CS FIRST BOSTON WON WITH A BID SETTING THE NET INTEREST COST AT 2515 WHILE GOLDMAN SACHS WON WITH A BID SETTING THE NET INTEREST COST AT 2374 CS FIRST BOSTON PRICED THE 3125 NOTES TO YIELD 245 GOLDMAN SACHS SET A COUPON OF 3125 THERE IS NO PUBLIC REOFFERING OF THE SEGMENT PURCHASED BY GOLDMAN THE ISSUE IS RATED MIG1 BY MOODY'S AND SP1PLUS BY S&P FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF NOTES DUE OCT 22 2003 PRICED AT PAR TO YIELD 578 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 56 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO BANCO MEXICANO MEXICO 100 MILLION OF 8 MEDIUMTERM NOTES DUE NOV 4 1998 PRICED AND REOFFERED TO INVESTORS AT PAR VIA CHEMICAL INVESTMENT BANK LTD AT THE REOFFER THE NOTES YIELD 340 BASIS POINTS OVER THE COMPARABLE FIVEYEAR TREASURY INTEREST PAID SEMIANNUALLY FEES 05 BAYERNHYPO FINANCE NV GERMAN PARENT 500 MILLION MARKS OF 5875 EUROBONDS DUE NOV 24 2000 PRICED AT 1015 VIA BAYERISCHE HYPOTHEKEN UND WECHSELBANK AG WHICH IS GUARANTEEING THE ISSUE FEES 225 EUROFIMA SUPRANATIONAL 110 MILLION CANADIAN DOLLARS OF 7 EUROBONDS DUE NOV 12 2003 PRICED AT 10055 VIA LEAD UNDERWRITER SWISS BANK CORP BONDS REOFFERED AT 99 FOR A SPREAD OF 26 BASIS POINTS ABOVE THE COMPARABLE CANADIAN GOVERNMENT NOTE FEES 1875 EUROPEAN ECONOMIC COMMUNITY SUPRANATIONAL ONE BILLION MARKS OF 5625 EUROBONDS DUE NOV 10 1998 AT ISSUE PRICE 1014 VIA DEUTSCHE BANK BONDS REOFFERED TO INVESTORS AT 100025 TO YIELD EIGHT BASIS POINTS OVER THE COMPARABLE FIVEYEAR GERMAN GOVERNMENT NOTE FEES 1625 FINANCE FOR DANISH INDUSTRY DENMARK AGENCY 150 BILLION LIRE OF 8 EUROBONDS DUE NOV 2 2000 PRICED AT 101425 TO YIELD 809 AFTER FULL FEES VIA JP MORGAN SECURITIES FEES 1875 HMC MORTGAGE NOTES 10 PLC UK 100 MILLION OF FLOATINGRATE NOTES DUE NOVEMBER 2020 PRICED AT PAR AND REOFFERED AT 9992 VIA CREDIT SUISSE FIRST BOSTON NOTES CALLABLE NOV 17 1996 AND BACKED BY UK RESIDENTIAL MORTGAGES COUPON IS THE THREEMONTH LONDON INTERBANK OFFERED RATE PLUS 0275 POINT FEES UNDISCLOSED ISTITUTO BANCARIO SAN PAOLO NASSAU ITALIAN PARENT 150 MILLION CANADIAN DOLLARS OF SUBORDINATED COLLARED FLOATINGRATE NOTES DUE NOVEMBER 2003 AT AN ISSUE PRICE OF 100 VIA KIDDER PEABODY SECURITIES CO THE NOTES ISSUED AS PART OF SAN PAOLO'S EURO MEDIUMTERM NOTE PROGRAM PAY THE SIXANADIAN BANKERS' ACCEPTANCE RATE LESS 30 BASIS POINTS WITH A MINIMUM OF 6875 AND A MAXIMUM OF 9 FEES 05 KOREA DEVELOPMENT BANK KOREAN AGENCY NINE BILLION YEN OF 3 EUROBONDS DUE APRIL 25 1996 PRICED AND REOFFERED AT 10025 VIA IBJ INTERNATIONAL SHORT FIRST COUPON ON JAN 25 AND A SECOND SHORT COUPON ON APRIL 25 THE ISSUE IS BEING OFFERED UNDER A EURO MEDIUMTERM NOTE PROGRAM FEES 025 LKB FINANCE BADEN WUERTTEMBERG NV GERMAN PARENT 1 BILLION OF FLOATINGRATE NOTES DUE NOVEM998 PRICED AND REOFFERED TO INVESTORS AT 9995 VIA CREDIT SUISSE FIRST BOSTON COUPON IS THE SIXMONTH LIBOR LESS 0125 POINT GUARANTEED BY LANDESKREDIETBANK BADEN WUERTTEMBERG WHICH IN TURN IS GUARANTEED BY THE GERMAN STATE OF BADEN WUERTTEMBERG FEES 015 RABOBANK NETHERLANDS 400 MILLION HONG KONG DOLLARS OF 675 EUROBONDS DUE NOV 15 2002 PRICED AND REOFFERED AT 9977 TO YIELD 678 VIA JP MORGAN SECURITIES ASIA INTEREST PAYABLE SEMIANNUALLY FEES 0325 SEIYU LTD JAPAN 20 BILLION YEN OF 42 EUROBONDS DUE OCT 31 2000 AND PRICED AT 1015 VIA NOMURA INTERNATIONAL BONDS REOFFERED AT 99925 SHORT FIRST COUPON ON JAN 31 AND A SHORT SECOND COUPON ON OCT 31 1994 FEES 1875 SEIYU LTD JAPAN 10 BILLION YEN OF 38 EUROBONDS DUE FEB 3 1999 PRICED AND REOFFERED AT PAR VIA DKB INTERNATIONAL SHORT FIRST COUPON ON FEB 3 FEES 03 SOCIETE NATIONALE DES CHEMINS DE FER FRENCH AGENCY 32 BILLION FRENCH FRANCS OF 6 BONDS DUE NOV 2 2006 AND PRICED AT 9813 VIA CAISSE DES DEPOTS ET CONSIGNATIONS BONDS REOFFERED AT 9718 TO YIELD 6325 FOR A SPREAD OF 15 BASIS POINTS ABOVE THE INTERPOLATED YIELD ON FRENCH TREASURY NOTES MATURING IN 2004 AND 2008 THE OFFERING IS A DOMESTIC ISSUE BUT 50 OF THE BONDS ARE FOR INTERNATIONAL DISTRIBUTION OPTION UNTIL OCT 21 1993 FOR THE BORROWER TO INCREASE THE AMOUNT BY 25 TO A TOTAL FOUR BILLION FRANCS TURKEY SOVEREIGN 125 MILLION OF 9 EUROBONDS DUE OCT 27 2003 PRICED AT 99145 AND REOFFERED AT 9777 VIA SG WARBURG SECURITIES LTD AT THE REOFFER THE BONDS YIELD 230 BASIS POINTS OVER THE COMPARABLE UK GILT FEES TWO 9310150169 930929 MAPPING THE MIND PANIC PATHWAY STUDY OF FEAR SHOWS EMOTIONS CAN ALTER WIRING' OF THE BRAIN AS BILLIONS POUR INTO EFFORT ANSWERS START SURFACING TO MYSTERIES OF THINKING RATS AND FLASHBACKS OF WAR BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL AN EXPLOSION OF THUNDER AWAKENS THE VIETNAM VETERAN FLOODING HIM WITH PANIC AND DISPATCHING HIS MIND BACK 27 YEARS FROM THE SAFETY OF HIS CONNECTICUT BEDROOM TO THE HARROWING JUNGLE OF WARTIME SOUTHEAST ASIA I AM RIGHT BACK IN VIETNAM IN THE MIDDLE OF THE MONSOON SEASON AT MY GUARD POST THE MAN EXPLAINS TO HIS DOCTOR AT THE VETERANS AFFAIRS HOSPITAL IN WEST HAVEN I AM SURE I'LL GET HIT IN THE NEXT VOLLEY AND CONVINCED I WILL DIE MY HANDS ARE FREEZING YET SWEAT POURS FROM MY ENTIRE BODY I CAN'T CATCH MY BREATH AND MY HEART IS POUNDING SUDDENLY I SEE WHAT'S LEFT OF MY BUDDY TROY HIS HEAD ON A BAMBOO PLATTER SENT BACK TO OUR CAMP BY THE VIET CONG PROPAGANDA MESSAGES ARE STUFFED BETWEEN HIS CLENCHED TEETH THE NEXT BOLT OF LIGHTNING AND CLAP OF THUNDER MAKES ME JUMP SO MUCH THAT I FALL TO THE FLOOR THE 49YEAROLD EXSOLDIER WHOSE EXPERIENCE WAS RECENTLY RELATED IN THE MAGAZINE ARCHIVES OF GENERAL PSYCHIATRY IS SUFFERING A FLASHBACK A TERRIFYING BIZARRE SYMPTOM OF POSTTRAUMATIC STRESS DISORDER OR PTSD ONCE KNOWN AS COMBAT FATIGUE OR SHELL SHOCK PTSD IS NOW CONSIDERED A MENTAL HEALTH DISORDER RESULTING FROM PHYSICAL FLAWS IN THE BRAIN'S NORMAL PROCESSING OF FEAR THE MOST PRIMITIVE AND INTENSE OF HUMAN EMOTIONS WHILE DOCTORS WHO TREAT WAR VETERANS ARE PERPLEXED BY THE DISORDER'S RESISTANCE TO THERAPY NEUROSCIENTISTS SAY STUDYING PTSD IS HELPING TO UNRAVEL ONE OF THE GRANDEST HUMAN MYSTERIES WHY PEOPLE FEEL WHAT THEY FEEL SCIENTISTS ARE BEGINNING TO IDENTIFY THE SITE OF POWERFUL EMOTIONS SAYS DENNIS CHARNEY A PTSD RESEARCHER AT YALE UNIVERSITY AND AT THE WEST HAVEN VETERANS AFFAIRS FACILITY IN DOING SO THE SCIENTISTS ARE HELPING PINPOINT WHERE IN THE BRAIN THE MIND IS LOCATED HE SAYS BY MAPPING THE BRAIN'S SEEMINGLY INCOMPREHENSIBLE NETWORK OF NEURAL HIGHWAYS AND JUNCTIONS INVOLVED IN EMOTION SCIENTISTS ARE CHALLENGING LONGHELD THEORIES IN PSYCHIATRY AND PSYCHOLOGY AND PROVIDING SURPRISING REINFORCEMENT FOR OTHERS FINDINGS CERTAIN TO ROIL MENTAL HEALTH CARE PHARMACEUTICAL RESEARCHERS ARE CONVINCED THE NEW BRAIN TOPOGRAPHY WILL SPUR THEIR HUNT FOR MORE EFFECTIVE DRUGS FOR A WIDE RANGE OF FEARRELATED DISORDERS SUCH AS ANXIETY DEPRESSION PANIC PHOBIAS AND PTSD ALREADY NEW RESEARCH IN LABORATORY ANIMALS IS BEGINNING TO EXPLAIN WHY PEOPLE BEST RECALL EMOTIONALLY CHARGED EVENTS WHY SOME PEOPLE ARE EDGY WHILE OTHERS ARE MORE CALM OR WHY PEOPLE FEEL THINGS THEY SIMPLY CAN'T UNDERSTAND IN THE FUTURE RESEARCHERS SAY CHARTING THE PATHWAYS OF EMOTION SHOULD LEAD TO ADVANCES IN MENTAL HEALTH THERAPY IN MUCH THE SAME WAY NEW TREATMENTS ARISE IN HEART DISEASE AS SCIENTISTS PRECISELY DESCRIBE THE WORKINGS OF THE CARDIOVASCULAR SYSTEM PERHAPS MOST STARTLING HOWEVER IS THAT BY PROBING THE BIOLOGY OF FEAR SCIENTISTS BELIEVE THEY WILL UNCOVER HOW EARLY TRAUMATIC EXPERIENCES CAN MAKE CERTAIN PEOPLE PRONE TO MOOD DISORDERS LATER IN LIFE FINALLY EXPLAINING HOW BIOLOGY AND ENVIRONMENT ARE LINKED IN CAUSING SUCH PROBLEMS AS DEPRESSION AND ANXIETY HOW THE BRAIN PROCESSES EMOTION IS ONLY ONE OF THE MYRIAD SECRETS OF THIS THREEPOUND ORGAN BEING UNVEILED BY AN UNPRECEDENTED FEDERALLY FUNDED 2BILLIONAYEAR RESEARCH EFFORT ORGANIZED IN 1990 UNDER AN UMBRELLA CONGRESS DUBBED THE DECADE OF THE BRAIN THE RESEARCH INVOLVES SCORES OF LABORATORIES AND HUNDREDS OF SCIENTISTS THE MIND/BRAIN EXPLORATION ALSO IS BEING DRIVEN BY A CASCADE OF ADVANCES IN BASIC KNOWLEDGE AND BY NEW IMAGING TECHNOLOGY THAT ALLOWS SCIENTISTS TO WATCH THE BRAIN AS IT ORCHESTRATES THE MOMENTTOMOMENT FUNCTIONS OF LIFE BY STUDYING THE BRAIN AS IT CARRIES OUT SUCH FUNCTIONS AS VISION MOVEMENT LANGUAGE AND MEMORY SCIENTISTS ARE OPENING A NEW VISTA ON THE BIOLOGY CHEMISTRY AND GENETICS OF THE BRAIN AND UNCOVERING NEW CLUES TO BRAIN DISORDERS RANGING FROM INVOLUNTARY TREMORS TO MIGRAINE HEADACHES AND DEPRESSION BUT DIAGRAMING THE BIOLOGY OF EMOTION IS DAUNTING BECAUSE FEELINGS ARE THE MOST AMBIGUOUS PRODUCTS OF THE HUMAN BRAIN WHEN IT COMES TO UNDERSTANDING WHAT A FEELING IS ANYONE'S GUESS IS AS GOOD AS ANYONE ELSE'S SAYS JOSEPH LEDOUX A LEADING BRAIN MAPPER AT NEW YORK UNIVERSITY WHAT WE'RE TRYING TO DO IS GIVE A PRECISION TO EMOTION THAT HASN'T EXISTED BEFORE POWERFUL FEELINGS SUCH AS HATE LOVE DISGUST JOY SHAME PLEASURE ENVY EUPHORIA AND GUILT DIFFICULT TO DEFINE EVEN IN POETRY ARE NEARLY IMPOSSIBLE TO MEASURE AND DISSECT IN LABORATORY SETTINGS BUT BECAUSE FEAR PERHAPS THE MOST UNIVERSAL OF ANIMAL INSTINCTS CAN EASILY BE STIMULATED IN LAB EXPERIMENTS BRAIN RESEARCH INTO IT IS NOW BEGINNING TO YIELD INSIGHTS SCIENTISTS BELIEVE WILL PROVIDE A FOUNDATION FOR STUDIES INTO HIGHER MORE COMPLICATED HUMAN FEELINGS BY ELECTRICALLY MONITORING THE BRAINS OF LABORATORY RODENTS AND PRIMATES AND PEERING INTO BRAINS OF HUMAN SUBJECTS THROUGH POWERFUL NEW IMAGING DEVICES SCIENTISTS ARE LEARNING SOMETHING PHILOSOPHERS AND PSYCHOLOGISTS SUSPECTED BUT COULDN'T PROVE MAMMALS HAVE AN INBORN CAPACITY TO REACT FEARFULLY TO DANGEROUS STIMULI THIS IS ESPECIALLY TRUE FOR LOUD NOISES SUCH AS THE ROAR OF A PREDATORY ANIMAL OR THE CRACK OF A GUN AND EVEN FOR FEARFUL SIGHTS SCIENTISTS HAVE SHOWN THAT NEWBORN MONKEYS INSTINCTIVELY FREEZE AT THE FIRSTEVER SIGHT OF A SNAKE AND AN INFANT RODENT WILL BE TERRIFIED WHEN EXPOSED TO A CAT EVEN IF IT HAS NEVER ENCOUNTERED ONE BEFORE IN THESE SITUATIONS HORMONES FLOOD THE BODY THE SENSES SHARPEN THE HEART RACES AND MUSCLES BECOME TAUT THIS FIGHT OR FLIGHT REACTION HAS EVOLVED IN VERTEBRATES AS A PROTECTIVE SIGNALING SYSTEM HELPING ANIMALS ESCAPE PERIL BEFORE THEY UNDERSTAND WHAT THE MENACE IS WE NOW BELIEVE THAT EXPERIENCING FEAR IS AN EMOTION THAT IS HARDWIRED' INTO THE BRAIN THAT VERTEBRATES INCLUDING PEOPLE ARE BORN WITH THE CAPACITY TO REACT FEARFULLY TO CERTAIN DANGERS LIKE A LOUD NOISE SAYS DR LEDOUX HE AND OTHERS SPECULATE THAT IF THIS INBORN CIRCUITRY BECOMES DAMAGED PEOPLE'S ABILITY TO PROCESS FEAR IS IMPAIRED PERHAPS LEADING TO ANY NUMBER OF MENTAL HEALTH PROBLEMS WE ARE NOW JUST BEGINNING TO TRACE PRECISELY THE PATHWAYS OF THAT WIRING DR LEDOUX SAYS NOTING THAT BY FIRST SKETCHING THE NORMAL NERVE ROUTES INVOLVED IN EMOTION RESEARCHERS MAY SOMEDAY BE ABLE TO SPOT GLITCHES AND PERHAPS DESIGN WAYS TO REPAIR THEM IN A WARREN OF TINY ROOMS ON THE 10TH FLOOR OF A REDBRICK BUILDING IN NEW YORK CITY'S GREENWICH VILLAGE DR LEDOUX AND HIS COLLEAGUES ARE LAYING DOWN A BLUEPRINT OF THE NEURAL PASSAGEWAYS THAT PRODUCE FEAR IN THE MINDS OF RODENTS IN AN EXPERIMENT CONDUCTED LEDOUX LAB MADE A SIMPLE BUT STARTLING DISCOVERY THAT CHANGED THE DIRECTION OF FEAR RESEARCH AT NYU AND ELSEWHERE THE EXPERIMENT MADE USE OF A TRADITIONAL RESEARCH MODEL ANIMALS WERE CONDITIONED OR TAUGHT TO REACT TO A STIMULUS THE LEDOUX LAB CAUSED RATS TO FREEZE IN FEAR BY PRICKING THEIR FEET WITH A MILD ELECTRIC SHOCK THE SHOCK WAS PRECEDED BY A TONE AND THE RATS EVENTUALLY LEARNED TO FREEZE IN FEAR UPON HEARING THE TONE ALONE ELECTRODES BENEATH THE RATS' SKULL TRACED ELECTRICAL IMPULSES EMITTED FROM NERVE CELLS THAT FIRED IN SUCCESSION CARRYING NEWS OF THE FEARFUL SOUND DR LEDOUX AND OTHERS FOUND THAT THE AMYGDALA A DENSE NUGGET OF NERVE FIBERS NEAR THE BASE OF THE BRAIN BECOMES A BUSY NEXUS OF ELECTRICAL ENERGY WHEN A RAT IS SCARED AS THE FRIGHTFUL TONE SOUNDS NERVE CIRCUITS FIRE DIRECTLY FROM THE BRAIN'S AUDITORY CONTROL CENTER NEAR THE EAR UP TOWARD THE BRAIN'S OUTER LAYER WHERE SENSORY INFORMATION IS MAE AND DOWN INTO THE AMYGDALA IN A CRUCIAL EXPERIMENT THE LEDOUX LAB REPEATED THE TONE EXPERIMENT ONLY THIS TIME RESEARCHERS SNIPPED THE NERVE WIRES LEADING TO AND FROM THE RATS' OUTER BRAIN REGION OR CEREBRAL CORTEX THE RATS STILL FROZE IN FEAR OUR KNOWLEDGE HAD LED US TO BELIEVE THAT EMOTIONAL REACTIONS TO SENSORY EXPERIENCES INVOLVED THE CORTEX WHERE IN HUMANS THOUGHTS ARE PROCESSED DR LEDOUX SAYS BUT HERE WE SHOWED THE SAME FEAR REACTION AROSE WITHOUT COGNITION THE ANSWER WAS CLEAR ELECTRICAL MONITORING SHOWED THE RESEARCHERS THAT NERVE PATHWAYS CARRYING SOUND FROM THE EAR TO THE AMYGDALA STILL PULSED WITH ACTIVITY MEANING THAT THE AMYGDALA ALONE WITHOUT INVOLVEMENT OF THE CORTEX WAS ABLE TO UNDERSTAND THAT A FEARFUL ALARM WAS BEING SOUNDED THIS PROVIDED COMPELLING EVIDENCE THAT A MAMMAL CAN BE AFRAID WITHOUT EXACTLY UNDERSTANDING WHY THE FINDING GALVANIZED EMOTION RESEARCH BECAUSE IT WAS A DIRECT CHALLENGE TO PREVAILING NOTIONS THAT FEELINGS ONLY COME FROM THOUGHTS AND IDEAS DR LEDOUX SAYS BUT OF COURSE IT ALSO MADE SENSE THINK OF STEPPING OFF A CURB AND JUMPING BACK WHEN YOU SUDDENLY HEAR THE BLAST OF AN ONRUSHING CAR'S HORN YOU JUMP BEFORE YOU HAVE THE TIME TO FIGURE OUT WHY WE THINK THAT'S BECAUSE THE AMYGDALA SENSES THE HORN BEFORE THE CORTEX CAN EXPLAIN IT THE DISCOVERY HAS UNLEASHED A NIAGARA OF RESEARCH SEEKING TO MAP ELECTRICAL NERVE CURRENTS IN AND OUT OF THE AMYGDALA THE NYU LAB AND OTHERS FOR INSTANCE SOON FOUND THAT NERVE IMPULSES TRIGGERED BY AN ALARM NOT ONLY FLOWED DIRECTLY INTO THE AMYGDALA BUT THE SAME STIMULUS EXCITED MANY NERVE PATHWAYS OUTWARD FROM THE AMYGDALA IN MANY DIRECTIONS SIGNIFICANTLY THEY FOUND THAT NERVE CONDUITS LEADING DOWNWARD ACTIVATE THE ADRENAL GLAND AND IGNITE FASTER HEART RATE AND QUICK MUSCLE REACTION SCIENTISTS NOW BELIEVE THIS NERVE ROUTE FROM AUDITORY RECOGNITION TO AMYGDALA TO THE BODY'S QUICKTRIGGER REACTION IS INGRAINED IN THE BRAIN THE RESULT OF EONS OF EVOLUTION IT HELPS EXPLAIN A GREAT DEAL DR LEDOUX SAYS FEELING DEEPLY ANXIOUS IS OFTEN A RESULT OF FEELING FEARFUL ABOUT SOMETHING WITHOUT UNDERSTANDING WHY OR WHAT YOU ARE FEARFUL OF OUR MODEL SUGGESTS HOW THIS CAN HAPPEN THE LAB FOUND THAT NERVE IMPULSES GOING FROM THE BRAIN'S AUDITORY DETECTION CENTER TO THE CORTEX WHERE A SIGNAL'S IDENTITY CAN BE DECIPHERED AND THEN TO THE AMYGDALA WHERE IT IS PROCESSED TAKE LONGER TO COMPLETE THAN THE SAME SIGNALS TAKE TO RUSH SIMULTANEOUSLY FROM THE EAR TO THE AMYGDALA BECAUSE ANIMALS AND HUMANS LEARN TO LIVE WITH ANXIETY AND FEAR SCIENTISTS BEGAN SEARCHING FOR EXACTLY HOW THE BRAIN MUFFLES REACTIONS TO A TERROR PROVOKING STIMULUS IN RECENT EXPERIMENTS SCIENTISTS HAVE UNCOVERED SEVERAL MODES OF EXTINCTION A PROCESS IN WHICH A FEARFUL REACTION BECOMES MUTED OVER TIME IN ONE TEST THE RESEARCHERS FOUND THAT AFTER A WHILE A RAT CONDITIONED TO FEAR A BRIGHT LIGHT COUPLED WITH A SHOCK WILL STOP FREEZING IN RESPONSE TO REPEATED EXPOSURES TO THE LIGHT BY ITSELF THE RAT LEARNS TO STOP BEING AFRAID DR LEDOUX SAYS IN ANOTHER EXPERIMENT LAB RATS WERE CONDITIONED TO FEAR THE TONE WITH A SHOCK ONLY WHEN PUT IN A PARTICULAR CAGE LATER THE SAME RATS BECAME IMMOBILIZED WITH FEAR WHEN PUT BACK IN THE SAME CAGE EVEN THOUGH THEY WEREN'T EXPOSED TO A TONE OR SHOCK OVER TIME IF THE RATS WERE EXPOSED ONLY TO THE TONE THEY EVENTUALLY LEARNED THE CAGE WASN'T DANGEROUS BUT WHEN RESEARCHERS REPEATED THE EXPERIMENT AND THIS TIME SNIPPED NERVE CIRCUITS RUNNING BETWEEN THE AMYGDALA AND A CERTAIN AREA IN THE CORTEX THE RATS' FEAR OF THE CAGE ALONE WAS PROLONGED SUGGESTING THAT SIGNALS FROM THE CORTEX CAN MODERATE REACTION TO A FEARFUL EXPERIENCE FEAR AND PERHAPS ALL EMOTION INVOLVES A COMPLEX OF SYSTEMS SAYS DR LEDOUX THE RESEARCH SUGGESTS THAT STIMULATING FEAR INVOLVES ONE PROCESS AND MUTING IT INVOLVES ANOTHER FLAWS IN EITHER SYSTEM COULD CAUSE A FEARRELATED DISORDER SEE RELATED LETTER LETTERS TO THE EDITOR STOP FRIGHTENING RATS AND HELP THE CHILDREN WSJ OCT 151993 9309290003 YY93 MM10 9310150152 930913 POLITICS & POLICY US TO REVIEW RESEARCH THAT SUGGESTS FIBERGLASS INSULATION IS CARCINOGEN BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE DEPARTMENT OF HEALTH AND HUMAN SERVICES RESPONDING TO INDUSTRY DEMANDS HAS ORDERED A REVIEW OF RESEARCH THAT CONCLUDES FIBERGLASS INSULATION USED IN 90 OF US HOMES IS A POSSIBLE CARCINOGEN THE DEPARTMENT'S NATIONAL TOXICOLOGY PROGRAM IN 1989 PROPOSED LISTING GLASS WOOL RESPIRABLE SIZE IN A GOVERNMENT REPORT ON CARCINOGENS THE PROGRAM SAYS RESEARCH SUGGESTS THE FIBERGLASS INSULATION MAY BE REASONABLY ANTICIPATED TO CAUSE CANCER IN HUMANS BUT SCIENTISTS BELIEVE THAT ANY HEALTH THREAT IS TO WORKERS INVOLVED IN INSULATION MANUFACTURING NOT TO HOMEOWNERS OR CONSTRUCTION WORKERS DR JAMES FOUTS THE SENIOR SCIENCE ADVISER TO THE DIRECTOR OF THE NATIONAL INSTITUTES OF ENVIRONMENTAL HEALTH SCIENCES SAID THIS IS THE FIRST TIME THE HHS HAS CALLED FOR A REVIEW OF RESEARCH BY THE NATIONAL TOXICOLOGY PROGRAM THE PROGRAM IS EXPECTED TO CONCLUDE ITS REVIEW BY THE END OF THE YEAR AND THE CARCINOGEN REPORT WON'T BE PUBLISHED UNTIL THE FIBERGLASS ISSUE IS RESOLVED THE REVIEW WAS ORDERED IN JULY AFTER PETITIONS IN JUNE 1992 AND JUNE 1993 AND INDUSTRYSPONSORED RESEARCH WERE SUBMITTED BY THE NORTH AMERICAN INSULATION MANUFACTURERS ASSOCIATION THAT GROUP WHICH REPRESENTS THE NATION'S FOUR LARGEST FIBERGLASS MANUFACTURERS SAID THERE ISN'T SUFFICIENT SCIENTIFIC DATA TO PROVE INHALED FIBERS COULD CAUSE CANCER THE ASSOCIATION'S GENERAL COUNSEL SHELDON PINE ALSO CHALLENGES THE PROGRAM'S TESTING METHODS WHICH RELIED ON INJECTION RATHER THAN INHALATION STUDIES AND CRITERIA WHICH REQUIRE FINDINGS OF CANCER IN ONLY TWO TESTS TO PLACE A SUBSTANCE ON THE POSSIBLE CARCINOGEN LIST THE INDUSTRY SAID THAT LISTING THE FIBERGLASS ON THE REPORT WOULD UNNECESSARILY ALARM THE PUBLIC AS WELL AS CAUSE ITS MEMBERS ECONOMIC HARM ALTHOUGH BEING CITED ON THE CARCINOGEN LIST BY ITSELF CARRIES NO LEGAL PENALTY THERE COULD BE ADDITIONAL LABELING REQUIREMENTS TO WARN OF A CANCER THREAT AND ENCOURAGE PROTECTIVE MEASURES SUCH AS THE USE OF FACE MASKS AND GLOVES WHEN HANDLING IT PROGRAM SCIENTISTS SAY THE LISTING IS ONLY MEANT TO SERVE AS A RED FLAG WARNING OF A POSSIBLE THREAT THE WASHINGTON POST REPORTED FRIDAY THAT INDUSTRY LAWYER H HARRISON WELLFORD WHO WORKED WITH HHS SECRETARY DONNA SHALALA IN THE CARTER WHITE HOUSE ALSO SENT A PERSONAL LETTER REQUESTING FIBERGLASS INSULATION BE KEPT OFF THE CARCINOGEN LIST UNTIL DATA WERE REVIEWED MR WELLFORD REFERRED INDUSTRY RESPONSE TO MR PINE THE GOVERNMENT'S ORDER SURPRISED SOME SCIENTISTS WHO HAVE SPENT MORE THAN 15 YEARS TESTING THE EFFECTS OF FIBERGLASS INSULATION ON RATS AND HAMSTERS DR FOUTS SAYS CANCER MALIGNANCIES NOT JUST SMALL BUMPS APPEARED ON THE TWO TESTED SPECIES AND THAT LIMITED HUMAN TESTS IN THE US AND EUROPE PRODUCED SIMILAR CANCEROUS RESULTS EPIDERMAL STUDIES HAVE ONLY BEEN DONE ON FACTORY WORKERS WHO PRODUCE FIBERGLASS THE THREAT TO HOMEOWNERS WITH LOOSE INSULATION IS THOUGHT TO BE EXTREMELY SLIGHT IN UNDERTAKING ITS REVIEW THE PROGRAM WON'T CHANGE ITS CRITERIA WHICH WERE CHALLENGED BY THE INDUSTRY BUT WILL LOOK AT NEW DATA SINCE PREVIOUS STUDIES HOWEVER THE PROGRAM WILL MEET SEPARATELY TO REEVALUATE THE CARCINOGEN LIST CRITERIA FOR FUTURE EVALUATIONS OF OTHER SUBSTANCES AS THE INDUSTRY'S SECOND PETITION HAD REQUESTED A CRITERIA REVIEW WAS FIRST SUGGESTED BY THE HHS IN 1988 SEE RELATED LETTER LETTERS TO THE EDITOR NO SIGNIFICANT RISK TO GLASS FIBER WORKERS WSJ OCT 15 1993 9309130118 YY93 MM10 9310150010 930929 REVIEW & OUTLOOK EDITORIAL NEW YORK'S MARLIN BLACKOUT A CABINET MEMBER UNDER RONALD REAGAN AND GEORGE BUSH TOOK TO THE STEPS OF NEW YORK CITY HALL MONDAY TO OPPOSE THE REPUBLICAN CANDIDATE FOR MAYOR FORMER DRUG CZAR WILLIAM BENNETT ENDORSED GEORGE MARLIN RUNNING ON THE CONSERVATIVE AND RIGHTTOLIFE LINES AGAINST DEMOCRATIC INCUMBENT DAVID DINKINS AND RUDOLPH GIULIANI WHO BILLS HIMSELF AS A FUSION CANDIDATE REPRESENTING REPUBLICANS AND THE CITY'S LIBERAL PARTY IN THE NEWS BUSINESS WE HAVE A SAYING THAT THERE'S NO NEWS IN DOGBITESMAN PREDICTABLE EVENTS SUCH AS BILL CLINTON BACKING MAYOR DINKINS OR SENATOR ALPHONSE D'AMATO BACKING HIS PARTY'S NOMINEE THE REAL NEWS IS MANBITESDOG AS WHEN A DIGNITARY OPPOSES HIS PARTY'S NOMINEE ALL THE MORE SO SINCE MR BENNETT WAS A PROMINENT SPEAKER AT THE HOUSTON REPUBLICAN CONVENTION WHERE 15000 REPORTERS WERE STRAINING TO FIND EVERY DROP OF DISCORD IN THE GOP ABOVE ALL OVER ITS DIVISIONS ON CULTURAL ISSUES LIKE SCHOOLS GAY RIGHTS AND SO ON SO YOU WOULD THINK THAT THE MEDIA CAPITAL OF THE WORLD MIGHT STOP TO TAKE NOTICE OF MR BENNETT AND MR MARLIN HERE'S THE BOX SCORE AT LEAST IN THE EDITIONS WE SCAN NEW YORK NEWSDAY FOUR LINES IN A CALENDAR OF UPCOMING EVENTS NOTHING AFTER THE FACT THE NEW YORK TIMES NOT NEWS FIT TO PRINT THE NEW YORK DAILY NEWS TO MARLIN DROP DEAD THE NEW YORK POST SORRY CLOSED DOWN BY UNIONS AS HABITUALLY SELFDESTRUCTIVE AS THE CITY'S ELECTORATE TV A FEW CAMERAS AT THE EVENT BUT SO FAR AS WE HAVE BEEN ABLE TO DISCOVER NOTHING ON THE AIR GEORGE MARLIN IS A MEDIA BLACK HOLE AND WHEN MR BENNETT ENTERS TO ENDORSE HIM NO LIGHT CAN ESCAPE TO BE DETECTED COME TO THINK OF IT MR GIULIANI IS ALSO RUNNING AS THE INVISIBLE MAN TRYING AT ALL COSTS TO AVOID SAYING ANYTHING DISCUSSING AN ISSUE WOULD BLUR THE POINT THAT HE IS NOT DAVID DINKINS MR DINKINS IS RELYING ON PRESIDENT CLINTON WHO FILLED LOCAL NEWS COLUMNS BY SUGGESTING THAT ANYONE WHO VOTES FOR SOMEONE OTHER THAN THE MAYOR IS A RACIST IN SUCH A MILIEU THE MORTAL DANGER IS THAT SOMEONE WILL SHOW UP WITH SUBSTANTIVE VIEWS WORSE HE MIGHT BE A MUNICIPAL BOND TRADER TALKING ABOUT PRIVATIZATION CUTTING CITY PAYROLLS CUTTING TAXES SCHOOL VOUCHERS AND THE OTHER THINGS THAT JUST MADE FELLOW WALL STREET FIGURE BRET SCHUNDLER THE REPUBLICAN MAYOR OF JERSEY CITY ACROSS THE HUDSON WORSE YET HE MIGHT SPEAK ON CULTURAL VALUES FOR THE COALITION THAT JUST TOPPLED NEW YORK SCHOOL CHANCELLOR JOSEPH FERNANDEZ WHY IF ANYONE STARTED TO LET VOTERS KNOW ABOUT SUCH VIEWS THE VOTERS MIGHT GET THE IDEA THEY HAD A CHOICE TO BE FAIR THE TIMES DID A NICE MARLIN PROFILE IN THE DOLDRUMS OF AUGUST NEWSDAY AND THE POST HAVE PUBLISHED PROMARLIN COMMENTARY THE NEWS MENTIONED HIS BUDGET CUTTING VIEWS AND THE MARLIN FACTOR CROPS UP IN STORIES ON DEBATES WITH MAYOR DINKINS DEMANDING TO REFEREE THE MARLINGIULIANI SLUGFEST OVER WHO IS THE REAL REPUBLICAN MR GIULIANI IS REFUSING TO APPEAR ON THE SAME PLATFORM OR EVEN IN THE SAME ZIP CODE HE DUCKED OUT OF FOUR DEBATES OR JOINT APPEARANCES IN THE PAST WEEK NO ONE SERIOUSLY THINKS MR MARLIN HAS ANY CHANCE TO PULL OFF AN UPSET BUT EVEN IN TERMS OF A HORSE RACE HE COULD PULL AWAY ENOUGH REPUBLICAN VOTES TO BE DECISIVE WHICH IS THE BIGGEST DANGER OF ALL AS A CLASS NEW YORK'S CIVIC BOOSTERS HAVE DECIDED THAT DINKINS MUST GO HIS LOW LAWENFORCEMENT IMAGE HAS BEEN BAD FOR PROPERTY VALUES MR GIULIANI HAS ARRIVED TO OFFER WHAT THEY WANT BUT THE CITY'S CRIME PROBLEM IS MERELY ONE FACET OF AN UNDERLYING PROBLEM THE IMPOSSIBLE POLITICAL CULTURE REFLECTED IN THE DINKINSGIULIANI CHOICE THE THOUGHT PROCESSES OF CIVIC BOOSTERS AND THE NEWS JUDGMENTS OF LOCAL EDITORS SO THE DWINDLING RANKS OF NEW YORK PAPERS OUGHT TO START WRITING SERIOUSLY ABOUT WHAT MR MARLIN HAS TO SAY AND ANY OTHER NATIONAL REPUBLICAN FIGURES WHO SHOW UP TO ENDORSE HIM WHATEVER ELSE IT MIGHT BE EDUCATIONAL FOR THE PAPERS AND FOR THE VOTERS SEE RELATED LETTER LETTERS TO THE EDITOR A LITERATE CANDIDATE GOES MOSTLY UNHEARD WSJ OCT 15 1993 9309290057 YY93 MM10 9310150179 930716 CLINTON IS EXPECTED TO ENDORSE CHANGE IN RULE THAT BARS GAYS FROM MILITARY BY JOHN J FIALKA AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS EXPECTED TO ENDORSE DON'T ASK DON'T TELL A CHANGE IN THE EXISTING RULE THAT EXCLUDES HOMOSEXUALS FROM MILITARY SERVICE BUT THE CHANGE IS LIKELY TO ANGER BOTH SIDES THE NEW POLICY WOULD BAR THE MILITARY FROM ASKING THE SEXUAL ORIENTATION OF RECRUITS AND PROHIBIT MEMBERS OF THE SERVICES FROM MOST FORMS OF DISCLOSURE THAT THEY ARE GAY OR LESBIAN HOMOSEXUAL CONDUCT WOULD REMAIN PROHIBITED THE WHITE HOUSE HAD HOPED TO ANNOUNCE THE DECISION TODAY BUT LAST NIGHT AIDES INDICATED THAT IT IS LIKELY TO BE PUT OFF UNTIL EARLY NEXT WEEK ONE REASON FOR THE DELAY UNTIL NEXT WEEK IS A CONCERN EXPRESSED BY ATTORNEY GENERAL JANET RENO WHO HAS BEEN REVIEWING THE PROPOSED POLICY CHANGE AND HAS EXPRESSED MISGIVINGS ABOUT ITS CONSTITUTIONALITY ADVOCATES ON BOTH SIDES OF THE ISSUE ARE ALREADY GEARING UP TO CHALLENGE THE NEW POLICY WILLIAM RUBENSTEIN DIRECTOR OF AN AMERICAN CIVIL LIBERTIES UNION TASK FORCE WHICH IS ADVOCATING A FULL LIFTING OF THE BAN SAID IT WAS PREPARING A LEGAL CHALLENGE TO A DON'T ASK DON'T TELL TYPE OF COMPROMISE IN ESSENCE SUCH A REGULATION WOULD FORCE GAY PEOPLE NOT ONLY TO NOT SPEAK BUT REALLY TO LIE ABOUT THEIR LIVES HE SAID WE THINK IT CLEARLY FRAMES A FIRST AMENDMENT QUESTION ABOUT FREEDOM OF SPEECH SEN DAN COATS R IND ONE OF THE LEADERS OF A BIPARTISAN COALITION OPPOSING ANY EASING OF THE CURRENT BAN SAID IT SEEMS CLEAR THAT THE ADMINISTRATION AND THE DEPARTMENT OF DEFENSE ARE TRYING TO FINESSE A SOLUTION THAT'S POLITICALLY ACCEPTABLE WHEN YOU DO THAT YOU RUN INTO VERY REAL PROBLEMS OF HAVING AN INCONSISTENT POLICY AND OPEN IT UP TO ENDLESS LITIGATION THE COALITION WANTS TO PUT THE EXISTING PENTAGON REGULATION WHICH DECLARES HOMOSEXUALITY INCOMPATIBLE WITH MILITARY SERVICE INTO LAW SEN RICHARD LUGAR ANOTHER SUPPORTER OF THE BAN LARGELY DISMISSED THE LOBBYING INFLUENCE OF GAY AND LESBIAN GROUPS I THINK THAT WITHIN CONGRESS THEIR EFFECT WILL NOT BE VERY SUBSTANTIAL ON THIS ISSUE THE INDIANA REPUBLICAN SAID DEFENSE SECRETARY LES ASPIN MET WITH MR CLINTON WEDNESDAY NIGHT TO DISCUSS PRELIMINARY RECOMMENDATIONS FOR A POLICY CHANGE WHITE HOUSE PRESS SECRETARY DEE DEE MYERS SAID DURING LAST YEAR'S PRESIDENTIAL CAMPAIGN MR CLINTON DESCRIBED AS UNFAIR THE BAN ON GAYS IN THE MILITARY YESTERDAY MR CLINTON WAS TO RECEIVE A RECOMMENDATION SAID TO BE ENDORSED BY THREE OF THE MAJOR FIGURES ON THE MILITARY SIDE OF THE DEBATE MR ASPIN CHAIRMAN OF THE JOINT CHIEFS OF STAFF COLIN POWELL AND SEN SAM NUNN D GA CHAIRMAN OF THE ARMED SERVICES COMMITTEE THE JOINT CHIEFS REPRESENTING LEADERS OF THE FOUR SERVICES HAVE BEEN DEBATING THE ISSUE SINCE JULY 2 THE BIGGEST STICKING POINT HAS BEEN HOW TO LINK THE DON'T ASK DON'T TELL CHANGE WITH THE CONSENSUS OF MOST MILITARY LEADERS THAT HOMOSEXUAL CONDUCT WOULD DO SERIOUS HARM TO THE OPERATION OF MILITARY UNITS A POLL TAKEN OF 414 MALE SOLDIERS AT AN ARMY BASE IN JUNE BY CHARLES MOSKOS A NORTHWESTERN UNIVERSITY SOCIOLOGIST WHO IS ONE OF THE ARCHITECTS OF DON'T ASK DON'T TELL SHOWED THAT 92 BELIEVE THAT OPENLY GAY SOLDIERS PROBABLY WOULD BE SUBJECT TO VIOLENCE FROM FELLOW SOLDIERS MR MOSKOS SAID THE POLL RESULTS INDICATE THAT SOLDIERS WHO DISCLOSE THEIR HOMOSEXUALITY WILL CAUSE TREMENDOUS LEADERSHIP AND COHESION PROBLEMS LEADERS OF QUEER NATION A GAY CIVILRIGHTS GROUP ISSUED A STATEMENT PREDICTING THAT PRESIDENT CLINTON WILL RETREAT ON HIS PLEDGE TO LIFT THE BAN ON GAYS ANY FORM OF THE DON'T ASK DON'T TELL' COMPROMISE WOULD BE INSULTING SAID STEVEN REICHERT A SPOKESMAN FOR THE GROUP THIS PLAN WOULD FORCE PROUD GAY AND LESBIAN SERVICE MEMBERS TO CONTINUE LIVING IN SECRET AS VICTIMS OF HATRED THAT IS UNAMERICAN SEE RELATED LETTER LETTERS TO THE EDITOR CLINTON LOST THIS ONE BUT YOU CALL IT VICTORY WSJ OCT 15 1993 9307160004 YY93 MM10 9310140166 931014 YOUR MONEY MATTERS VARIABLE ANNUITIES PROVIDE THE CHOICES OF MUTUAL FUNDS PLUS SOME TAX BREAKS BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL YOU CAN'T WAVE A MAGIC WAND AND TURN YOUR FAVORITE MUTUAL FUNDS INTO TAX SHELTERS BUT THOUSANDS OF INVESTORS ARE DOING THE NEXT BEST THING THEY'RE BUYING TAXFAVORED VARIABLE ANNUITIES THAT CONTAIN FUNDS MANAGED BY THEIR FAVORITE MUTUALFUND COMPANIES FIRMS SUCH AS FIDELITY INVESTMENTS OPPENHEIMER MANAGEMENT NEUBERGER & BERMAN TWENTIETH CENTURY AND VANGUARD GROUP THERE ARE A LOT OF PEOPLE WHOSE EYES BRIGHTEN WHEN THEY FIGURE THEY CAN GET FIDELITY OR NEUBERGER & BERMAN FUNDS TAXDEFERRED SAYS JENNIFER STRICKLAND EDITOR OF VARIABLE ANNUITY PERFORMANCE REPORT A PUBLICATION OF MORNINGSTAR INC OF CHICAGO VARIABLE ANNUITIES ARE INVESTMENT CONTRACTS UNDERWRITTEN BY INSURANCE COMPANIES THAT GIVE INVESTORS A SELECTION OF SIX TO EIGHT OR MORE FUNDLIKE STOCK AND BOND ACCOUNTS IN WHICH TO ALLOCATE THEIR MONEY THERE'S NO TAX ON THE MONEY EARNED IN VARIABLE ANNUITIES UNTIL IT'S TAKEN OUT EVEN WITH THE TAX ADVANTAGE THESE INVESTMENTS AREN'T FOR EVERYBODY INSURANCECOMPANY FEES THAT AVERAGE 127 ANNUALLY CAN ERASE THE ADVANTAGE OF THE TAXDEFERRAL UNLESS YOU HOLD THE INVESTMENT FOR AT LEAST A DECADE MOST ANNUITIES HAVE SURRENDER PENALTIES THAT START AT ABOUT 7 OF ASSETS IN THE FIRST YEAR AND TAPER OFF OVER SIX YEARS OR SO IF YOU TAKE THE MONEY OUT BEFORE AGE 59 1/2 YOU'LL PAY A 10 PENALTY ON THE EARNINGS IN ADDITION TO INCOME TAXES STILL FOR A LOT OF INVESTORS WHO ARE CONVINCED THAT ANNUITIES MAKE SENSE FOR THEM CHOOSING ONE ON THE BASIS OF A FAMILIAR FUND MANAGER IS LIKE EATING AT A MCDONALD'S IN MOSCOW SINCE THEY'RE FAMILIAR WITH THE PRODUCT AND THE PROVIDER THE ACTUAL LOCATION DOESN'T SEEM LIKE SUCH ALIEN TERRITORY HAVING A FAMILIAR MUTUALFUND MANAGER CAN CLINCH THE SALE SAYS MS STRICKLAND FOR EXAMPLE 85 OF THE BUYERS OF HARTFORD LIFE INSURANCE CO'S HARTFORD PUTNAM CAPITAL MANAGER VARIABLE ANNUITY ARE ALSO PUTNAM MUTUALFUND BUYERS THEY'VE ALREADY UNDERSTOOD THE MUTUAL FUND PERFORMANCE AND MOST ARE IN A HIGH TAX BRACKET SAYS STEPHEN GIBSON MANAGING DIRECTOR OF RETAIL MARKETING FOR PUTNAM INVESTMENTS IN BOSTON THE INVESTMENT FUNDS IN VARIABLE ANNUITIES HAVE TRADITIONALLY BEEN MANAGED INHOUSE BUT AN INCREASING NUMBER OF VARIABLE ANNUITY COMPANIES ARE HIRING OUTSIDE MANAGERS AT MAJOR MUTUAL FUND COMPANIES TO MANAGE SOME OF THEIR FUND OPTIONS THE MOST PREVALENT IS GIANT BOSTONBASED FIDELITY WHICH MANAGES FUNDS IN 13 VARIABLE ANNUITIES OFFERED BY A NUMBER OF INSURERS IN THE PAST YEAR THE FUND ASSETS IT MANAGES IN VARIABLE ANNUITIES HAVE MORE THAN DOUBLED TO 56 BILLION MORE PEOPLE ARE LOOKING FOR TAX SHELTERS VARIABLE ANNUITIES ARE REMARKABLE FOR THAT SAYS STANLEY EGENER PRESIDENT OF NEUBERGER & BERMAN MANAGEMENT FRANK CICCARELLI OF NAPLES FLA SAYS HE CHOSE THE VARIABLE ANNUITIES HE INVESTS IN BECAUSE THEY HAVE WELLKNOWN FUND MANAGERS HE OWNS NATIONWIDE LIFE INSURANCE CO'S BEST OF AMERICA AND VENTURE VISION ISSUED BY NORTH AMERICAN SECURITY LIFE INSURANCE CO OF AMERICA I LIKE THE ASSORTMENT OF FUND MANAGERS IN VENTURE HE SAYS WHICH INCLUDE FIDELITY AND WELLINGTON MANAGEMENT WHILE THE ANNUITY HAS HIGH CONTRACT CHARGES OF 165 ANNUALLY IT HAS LOW SURRENDER CHARGES OF 3 FIXED FOR THREE YEARS TWENTY PERCENT OF ALL STOCK FUNDS SOLD BY BROKERS AND INSURANCE AGENTS DURING THE PAST QUARTER WERE IN VARIABLE ANNUITIES SAYS AVI NACHMANY AN ANALYST AT STRATEGIC INSIGHT A RESEARCH AND CONSULTING FIRM IN NEW YORK ALTOGETHER HE SAYS AN ESTIMATED 31 BILLION WILL FLOW INTO VARIABLE ANNUITY STOCK AND BOND FUNDS OR SUBACCOUNTS THIS YEAR UP FROM 18 BILLION LAST YEAR BEFORE RUSHING INTO A VARIABLE ANNUITY IT PAYS TO TAKE THE TROUBLE TO COMPARE CONTRACTS TO SEE HOW ALL THE FUNDS IN THEM PERFORM AND HOW THE FEES COMPARE LIFE INSURANCE CO OF VIRGINIA'S COMMONWEALTH VARIABLE ANNUITY FOR EXAMPLE HAS SIX FIDELITY FUNDS AND SIX OPPENHEIMER FUNDS ALL OF WHICH HAVE OUTPERFORMED THEIR FUND CATEGORIES IN ONE AND THREE YEARS AMONG THE FUNDS FIDELITY MANAGES ITS GROWTH GROWTHANDINCOME BALANCED AND INTERNATIONAL FUNDS RETURNED AN AVERAGE OF 2519 2275 1767 AND 838 RESPECTIVELY ANNUALLY DURING THE PAST THREE YEARS AMONG THE FUNDS OPPENHEIMER MANAGES IN LIFE OF VIRGINIA COMMONWEALTH ITS SMALL STOCK HIGH INCOME AND GROWTH FUNDS RETURNED AN AVERAGE OF 2914 2215 AND 1458 RESPECTIVELY ANNUALLY OVER THE PAST THREE YEARS NEARLY IDENTICAL RETURNS ON THESE FUND TYPES WERE AVAILABLE IN OTHER VARIABLE ANNUITY CONTRACTS FOR WHICH OPPENHEIMER AND FIDELITY MANAGE MONEY IN THE CASE OF OPPENHEIMER THESE INCLUDE ANNUITIES FROM BANKERS SECURITY USA AND CONFEDERATION MULTIVEST PLAN SIMILAR FIDELITYRUN FUNDS ARE AVAILABLE IN AMERITAS OVERTURE AND BEST OF AMERICA IV TYPICALLY A FUND COMPANY CREATES A SORT OF PROTOTYPE FUND THAT IS SOLD WITHIN DIFFERENT VARIABLE ANNUITIES CONSEQUENTLY IF YOU ARE INTERESTED IN FUNDS MANAGED BY A PARTICULAR FUND COMPANY YOU CAN OFTEN FIND THE SAME FUNDS IN SEVERAL PRODUCTS YOU MAY WANT TO COMPARE THE ANNUITIES ON THE BASIS OF THE OTHER FUNDS THEY OFFER AS WELL AS THE COSTS FOR EXAMPLE WHILE NATIONWIDE'S BEST OF AMERICA IV HAS TOPPERFORMING FUNDS BY BOTH FIDELITY AND OPPENHEIMER IT DOESN'T HAVE SOME OF THE TOPPERFORMING OPPENHEIMER FUNDS THAT ARE AVAILABLE IN LIFE OF VIRGINIA COMMONWEALTH INCLUDING A SMALLSTOCK FUND THAT RETURNED 4714 IN THE PAST YEAR BUT BEST OF AMERICA IS THE ONLY VARIABLE ANNUITY THAT OFFERS FUNDS FROM STRONG/CORNELIUSON CAPITAL MANAGEMENT ITS GROWTH AND AGGRESSIVE GROWTH FUNDS RETURNED 3530 AND 2739 RESPECTIVELY IN THE PAST 12 MONTHS EVEN IF THE FUNDS ARE VIRTUALLY THE SAME IN DIFFERENT ANNUITIES COSTS VARY VARIABLE ANNUITY CONTRACTS HAVE ANNUAL INSURANCECOMPANY EXPENSES THAT AVERAGE 127 THE SAME FIDELITY FUNDS WILL COST 145 ANNUALLY IN AMERITAS OVERTURE 135 IN LIFE OF VIRGINIA COMMONWEALTH AND 130 IN BEST OF AMERICA FIDELITY ALSO SELLS THESE FUNDS IN ITS OWN VARIABLE ANNUITY FIDELITY RETIREMENT RESERVES THE ANNUAL CONTRACT CHARGE IS 1 THE CHEAPEST WAY TO BUY FIDELITY FUNDS IS STRAIGHT FROM FIDELITY ITSELF SAYS MS STRICKLAND IN ADDITION TO THE INSURANCE EXPENSES THE FUNDS ALSO HAVE ANNUAL INVESTMENT EXPENSES ON THE UNDERLYING FUNDS UNLIKE THE INSURANCE EXPENSES THESE DON'T VARY FROM ANNUITY TO ANNUITY AS LONG AS THE PROTOTYPE FUND IS THE SAME FOR EXAMPLE FIDELITY'S GROWTH FUND HAS ANNUAL FEES OF 075 IN EVERY ANNUITY IN WHICH IT'S OFFERED IF YOU'RE LOOKING FOR A VARIABLE ANNUITY TO INVEST IN START BY GETTING SALES LITERATURE FROM AT LEAST FIVE ASK FOR TOTAL RETURNS OVER ONE AND THREE YEARS LONGER IF AVAILABLE AND MAKE SURE THE FIGURES ARE NET OF ALL FUND AND INSURANCE EXPENSES AN INVESTOR WHO WANTS TO IDENTIFY VARIABLE ANNUITIES FOR WHICH A PARTICULAR MUTUALFUND COMPANY MANAGES FUNDS CAN OBTAIN A COPY OF MORNINGSTAR'S VARIABLE ANNUITY PERFORMANCE REPORTS WHICH INCLUDES PERFORMANCE FIGURES ON MOST VARIABLE ANNUITY FUNDS 8008765005 A SINGLE ISSUE IS 15 WHILE THE VARIABLE ANNUITIES MENTIONED ABOVE HAVE A HANDFUL OF MUTUALFUND MANAGERS A FEW VARIABLE ANNUITIES HAVE A SINGLE FUND MANAGEMENT COMPANY FOR THEIR FUNDS SOME OF THOSE ANNUITIES WITH STRONG PERFORMANCE ARE FRANKLIN VALUEMARK II HARTFORD PUTNAM CAPITAL MANAGER AND PHOENIX BIG EDGE PLUS ALL ARE SOLD THROUGH INSURANCE AGENTS AND BROKERS SIMILARLY A FEW NOLOAD FUND COMPANIES SELL ANNUITIES THAT CONTAIN ONLY THEIR OWN FUNDS THESE INCLUDE FIDELITY RETIREMENT RESERVES SCUDDER HORIZON PLAN AND VANGUARD VARIABLE ANNUITY PLAN BECAUSE THESE ANNUITIES ARE SOLD DIRECTLY TO BUYERS RATHER THAN THROUGH BROKERS THEY HAVE LOWER COSTS WHILE THE AVERAGE INSURANCE EXPENSE FOR VARIABLE ANNUITIES IS 127 ANNUALLY SCUDDER HORIZON COSTS 063 AND THE VANGUARD VARIABLE ANNUITY PLAN COSTS 055 VANGUARD AND SCUDDER ALSO HAVE UNUSUALLY LOW FUND EXPENSES AND NO SURRENDER CHARGES VIRTUALLY THE SAME FUND CAN OFTEN BE FOUND IN SEVERAL VARIABLE ANNUITY PRODUCTS BUT ANNUAL INSURANCE EXPENSES AND SURRENDER PENALTIES VARY FROM ANNUITY COMPANY TO ANNUITY COMPANY IN THIS TABLE WHICH SHOWS FOUR ANNUITIES THAT INCLUDE FIDELITY FUNDS RETURNS ARE NET OF ALL EXPENSES 9310140165 931014 CLINTON TAKES BACK 50 OF EARLY GAINS FOR SOME FIRMS UNDER HEALTHCARE PLAN BY RICK WARTZMAN AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION HAS DECIDED TO TAKE BACK HALF THE EARLY FINANCIAL GAINS REALIZED BY COMPANIES THAT TAKE ADVANTAGE OF A CLINTON PROPOSAL IN WHICH THE GOVERNMENT WOULD PAY MOST OF THE MEDICAL COSTS FOR EARLY RETIREES THE DECISION ON EARLY RETIREES CAME AS PRESIDENT CLINTON'S HEALTHCARE TEAM ALL BUT COMPLETED THE FINANCING PROVISIONS OF HIS HEALTHCARE OVERHAUL PLAN SHRINKING ITS DEFICITREDUCTION FIGURE TO ABOUT 70 BILLION THROUGH THE YEAR 2000 FROM AN EARLIER ESTIMATE OF 91 BILLION UNDER THE EARLY RETIREES' PROVISION THE GOVERNMENT WOULD PAY 80 OF THE AVERAGE COST OF A FEDERALLY GUARANTEED PACKAGE OF HEALTH BENEFITS THIS POPULATION AGE 55 TO 65 IS TOO YOUNG TO BE COVERED BY THE FEDERAL MEDICARE PROGRAM AND HAS BECOME A MAJOR BURDEN FOR THE NATION'S AUTO MAKERS IN PARTICULAR BUT IN ORDER TO REPLENISH THE MEDICARE AND SOCIAL SECURITY TRUST FUNDS COMPANIES THAT REAP A WINDFALL FROM THE GOVERNMENT'S ASSUMPTION OF EARLY RETIREE MEDICAL COSTS WOULD HAVE TO PAY BACK AN ASSESSMENT TO UNCLE SAM EACH COMPANY'S ASSESSMENT WOULD BE EQUAL TO HALF THE GAIN IT REALIZES OVER THE FIRST THREE YEARS FROM THE RETIREE PROVISION ACCORDING TO CLINTON OFFICIALS AFTER THE THREEYEAR PERIOD THESE COMPANIES WOULD ENJOY THE FULL GAIN DESPITE THE SMALLER DEFICITREDUCTION ESTIMATE AND THE NAILING DOWN OF CERTAIN POLICIES OFFICIALS SAID MOST OF THE FINAL COST AND SAVINGS ESTIMATES IN THE HEALTH PLAN WILL BE LITTLE CHANGED FROM THOSE FOUND IN A WIDELY CIRCULATED SEPT 7 DRAFT OF PRESIDENT CLINTON'S PROPOSAL MOST NOTABLY THE ADMINISTRATION IS STICKING BY ITS EARLIER ESTIMATES FOR MEDICARE AND MEDICAID SAVINGS WHICH HAVE BEEN ATTACKED BY LAWMAKERS IN BOTH PARTIES AS TOO AMBITIOUS THE TOTAL ESTIMATED SAVINGS FROM CAPPING EXPENDITURES IN THE TWO GIANT GOVERNMENT HEALTH PROGRAMS WILL BE WITHIN A COUPLE OF BILLION DOLLARS OF THE EARLIER 238 BILLION FIVEYEAR PROJECTION CLINTON OFFICIALS SAID THE LATEST SET OF CALCULATIONS ARE SUBJECT TO ONE MORE ROUND OF COMPUTER RUNS AND THEN APPROVAL BY MR CLINTON DURING THE NEXT SEVERAL DAYS OFFICIALS SAID THEY'VE ALSO DECIDED THAT AT ELECT TO STAY OUTSIDE THE REGIONAL INSURANCEPURCHASING POOLS ESTABLISHED BY THE CLINTON PLAN WOULD PAY AN ANNUAL SURCHARGE OF 1 OF PAYROLL THIS SPECIAL ASSESSMENT WHICH IS DESIGNED TO BRING IN ABOUT 4 BILLION TO 5 BILLION A YEAR WOULD BE USED TO HELP FUND ACADEMIC MEDICAL CENTERS AND OTHER PARTS OF THE HEALTHCARE INFRASTRUCTURE ADDITIONALLY THE HEALTHCARE TEAM WILL RECOMMEND TO THE PRESIDENT THAT THE TAX ON CIGARETTES BE RAISED BY BETWEEN 75 CENTS AND 1 A PACK OFFICIALS INDICATED THE CURRENT FEDERAL LEVY IS 24 CENTS A PACK THE EXACT AMOUNT ONE OF THE MOST POLITICALLY SENSITIVE DETAILS IN THE PROPOSAL WAS STILL BEING CLOSELY GUARDED LAST NIGHT OFFICIALS SAID THEY ALSO WILL PROPOSE TAXING ALL OTHER TOBACCO PRODUCTS INCLUDING CIGARS AND CHEWING TOBACCO THE NEARFINAL NUMBERS WERE DISCUSSED AT A MEETING YESTERDAY AFTERNOON BETWEEN SENIOR WHITE HOUSE ADVISER IRA MAGAZINER DEPUTY TREASURY SECRETARY ROGER ALTMAN WHITE HOUSE BUDGET DIRECTOR LEON PANETTA AND HIS DEPUTY ALICE RIVLIN AND SEVERAL ADMINISTRATION ECONOMISTS THE NEW FIGURES REFLECT FRESH ANALYSIS FROM THE TREASURY AND THE OFFICE OF MANAGEMENT AND BUDGET THE ADMINISTRATION AIMS TO HAVE A DETAILED LEGISLATIVE PROPOSAL UP TO CAPITOL HILL BY LATE NEXT WEEK OR EARLY THE FOLLOWING WEEK FOR ALL THE SCRUBBING OF THE NUMBERS BY TREASURY AND OMB OFFICIALS THE MAIN ELEMENTS OF THE CLINTON PLAN REMAIN THE SAME AS THEY'VE BEEN FOR MONTHS THE PROPOSAL INCLUDES NO BROADBASED TAX INCREASES BUT RATHER GENERATES MOST OF ITS FINANCING FROM A NEW MANDATE THAT ALL EMPLOYERS PAY FOR PART OF THEIR WORKERS' HEALTH COVERAGE NONETHELESS SIGNIFICANT CHANGES WERE MADE IN A FEW AREAS ONE RELATES TO THE SUBSIDIES THAT WOULD BE PROVIDED TO SMALL BUSINESSES AND LOWINCOME INDIVIDUALS TO HELP THEM AFFORD A FEDERALLY GUARANTEED PACKAGE OF HEALTH BENEFITS BECAUSE THE ADMINISTRATION IS NOW USING NEW HIGHER INFLATION PROJECTIONS AND HAS DECIDED TO BUILD IN AN EXTRA CUSHION IN CASE MORE PEOPLE QUALIFY FOR THE SUBSIDIES THAN EXPECTED THE COST OF THIS MEASURE HAS INCREASED TO ABOUT 90 BILLION WHEN FULLY IN EFFECT IN 1997 FROM 80 BILLION OFFICIALS SAID THEY ALSO INTENDED TO ALTER THE PROVISION CAPPING THE REQUIRED HEALTH CONTRIBUTIONS OF SMALL LOWWAGE COMPANIES THE DRAFT WOULD HAVE BASED THE CAPS FOR THOSE WITH FEWER THAN 50 EMPLOYEES SOLELY ON THE AVERAGE WAGE OF THE EMPLOYEES IN THE BUSINESS ACCORDING TO CLINTON AIDES THE UPDATED PLAN WOULD MAKE THE CAPS WHICH STILL RANGE FROM 35 TO 79 OF PAYROLL SENSITIVE TO THE SIZE OF THE COMPANY'S WORK FORCE AS WELL ONE OFFICIAL SAID THAT THIS CHANGE WHICH IS SURE TO BE CONTESTED BY SOME SMALL BUSINESSES WOULDN'T AFFECT THE OVERALL COST OF THE SUBSIDIES BECAUSE THE ADMINISTRATION NOW DOESN'T ANTICIPATE PASSAGE OF THE HEALTH PLAN UNTIL LATE NEXT YEAR CLINTON OFFICIALS SAID THEY'VE STRETCHED OUT THE DEADLINE SLIGHTLY FOR STATES TO COME INTO THE NEW SYSTEM THE DRAFT HAD PUT IT AT JAN 1 1997 OFFICIALS SAID IT WOULD PROBABLY BE SHIFTED TO LATER IN THAT YEAR THE BELATED PASSAGE OF THE PLAN WOULD ALSO DELAY THE IMPOSITION OF THE INCREASED TOBACCO TAXES ONE FACTOR IN THE LOWER DEFICITREDUCTION FIGURE 9310140164 931014 INTERNATIONAL BRITISH PRICE INDEX CLIMBS LONDON BRITAIN'S RETAIL PRICE INDEX ROSE 18 IN SEPTEMBER FROM A YEAR EARLIER AND WAS UP 04 FROM AUGUST THE CENTRAL STATISTICAL OFFICE SAID THE UNDERLYING INDEX WHICH EXCLUDES MORTGAGE INTEREST PAYMENTS ROSE 33 ON THE YEAR AND 04 FROM AUGUST 9310140163 931014 BOCA RESEARCH FORMS UNIT BOCA RATON FLA BOCA RESEARCH INC FORMED A EUROPEAN SUBSIDIARY BOCA RESEARCH HOLLAND BV THE MAKER OF COMPUTER PERIPHERAL PRODUCTS SAID THE SUBSIDIARY WILL DIRECT EUROPEAN OPERATIONS FROM CAPELLE AAN DEN IJSSEL THE NETHERLANDS 9310140162 931014 DIVIDEND NEWS CSX CORP CSX CORP RICHMOND VA SAID IT RAISED ITS QUARTERLY 16 TO 44 CENTS A SHARE PAYABLE DEC 15 TO SHARES OF RECORD NOV 25 AS OF OCT 13 CSX AN INTERNATIONAL TRANSPORTATION COMPANY HAD ABOUT 104 MILLION SHARES OUTSTANDING 9310140161 931014 FINANCING BUSINESS WALT DISNEY CO WALT DISNEY CO'S 100 MILLION ISSUE OF MEDIUMTERM NOTES DUE 2008 WAS PRICED AT PAR TO YIELD 58 THE DEBT IS NONCALLABLE THE BURBANK CALIF ENTERTAINMENT CONCERN'S ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO 9310140160 931014 WHO'S NEWS ELEKTEK INC ELEKTEK INC SKOKIE ILL SUSAN J KAISER WAS NAMED A DIRECTOR OF THIS RETAILER OF MICROCOMPUTER HARDWARE SOFTWARE AND RELATED ACCESSORIES FILLING A VACANCY ON THE BOARD SHE HAS EXPERIENCE IN THE INVESTMENT COUNSELING AND BROKERAGE BUSINESSES 9310140158 931014 INTERNATIONAL US FEARS CHINA'S SUCCESS IN SKIMMING CREAM OF WEAPONS EXPERTS FROM RUSSIA BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CHINA'S SUCCESS IN RECRUITING RUSSIAN WEAPONS EXPERTS AND ACQUIRING NUCLEAR AND BALLISTIC MISSILE TECHNOLOGY SENDS A SHUDDER THROUGH THE CLINTON ADMINISTRATION WHICH FEARS CHINA'S EFFORTS WILL EVENTUALLY ENABLE ITS STRATEGIC NUCLEAR FORCES TO REACH THE US ACCORDING TO GOVERNMENT OFFICIALS AS MANY AS A THOUSAND TECHNICIANS SCIENTISTS AND ENGINEERS FROM RUSSIA'S PREVIOUSLY TOP SECRET WEAPONS COMPLEXES HAVE BEEN RECRUITED TO COME TO CHINA FOR HIGH SALARIES AND REPORTEDLY LAVISH LIVING ALLOWANCES MEANWHILE RUSSIA'S SYSTEM FOR KEEPING TRACK OF ITS WEAPONS SCIENTISTS HAS BROKEN DOWN AND AN INTERNATIONAL EFFORT LED BY THE US TO GIVE THE SCIENTISTS HAS BEEN STALLED DESPITE MORE THAN A YEAR OF PREPARATIONS ONE STATE DEPARTMENT OFFICIAL WHO ASKED NOT TO BE IDENTIFIED CALLED THE SITUATION EXTREMELY UNFORTUNATE THE CHINESE ARE EXPLOITING A SITUATION WHERE THE CREAM OF THE WEAPONS COMMUNITY WASN'T BEING PAID SALARIES LAST SUMMER THE OFFICIAL SAID ANOTHER OFFICIAL SAID SEVERAL SPECIFIC INCIDENTS INVOLVING THE ACCELERATED EASTWARD FLOW OF EXPERTS AND TECHNOLOGY HAVE TRIGGERED REQUESTS FOR DIPLOMATIC PROTESTS CALLED DEMARCHES AGAINST BOTH RUSSIA AND CHINA MOVES THAT WERE REJECTED BY THE STATE DEPARTMENT BECAUSE OF THE CURRENT SENSITIVITY IN DEALINGS WITH BOTH COUNTRIES HOWEVER A STATE DEPARTMENT SPOKESMAN SAID HE WASN'T AWARE OF ANY DEMARCHES THAT HAD BEEN DROPPED THE RECRUITMENT OF WEAPONS EXPERTS IS ONLY ONE ASPECT OF CHINA'S AGGRESSIVE PURSUIT OF RUSSIAN TECHNOLOGY INCLUDING THE SS25 RUSSIA'S MOST MODERN MOBILE INTERCONTINENTAL BALLISTIC MISSILE CHINESE EXPERTS ARE VISITING RUSSIAN DEFENSE PLANTS AND WEAPONS DESIGNS AND MATHEMATICAL MODELING WORK ARE BEING SENT TO CHINA BY ELECTRONIC MAIL FROM RUSSIAN WEAPONS LABORATORIES YOU DON'T HAVE TO LEAVE THE COUNTRY TO BE RECRUITED DECLARED ONE OFFICIAL IN RUSSIA THEY CAN GO RECRUIT THESE GUYS SEMIOPENLY SAID JAMES R LILLEY US AMBASSADOR TO CHINA AND DEFENSE DEPARTMENT OFFICIAL DURING THE BUSH ADMINISTRATION HE SAID THE CHINESE MEDIA HAS REPORTED THAT AS MANY AS 3000 FORMER SOVIET EXPERTS HAVE BEEN RECRUITED FOR SALARIES AS HIGH AS 2000 A MONTH EACH PLUS HOUSING A CAR AND LIVING EXPENSES WITH THE CHINESE HE SAID THEY CAN GET CASH ON THE BARRELHEAD MR LILLEY NOW AN ANALYST AT THE AMERICAN ENTERPRISE INSTITUTE A PRIVATE RESEARCH FOUNDATION HERE CALLED THE TRANSFER A BONANZA FOR THE CHINESE WITH RUSSIA'S HELP HE ASSERTS CHINA'S MILITARY IS MAKING A MAJOR SHIFT FROM A LANDBASED DEFENSE FORCE TO ONE CAPABLE OF PROJECTING MILITARY POWER THROUGHOUT THE FAR EAST AND BEYOND CHINA'S FOCUS ON MORE MODERN NUCLEAR WEAPONS AND LONGRANGE MISSILES HE SAID VIOLATES AT LEAST TWO TREATIES AND WILL EVENTUALLY THREATEN US VITAL INTERESTS IN THE PACIFIC CHINESE OFFICIALS HAVE PLAYED DOWN THEIR MILITARY MODERNIZATION EFFORTS INCLUDING A RECENT NUCLEAR TEST CLAIMING THEIR DEFENSE BUDGET IS A RELATIVELY TINY 73 BILLION BUT MR LILLEY CLAIMS LARGER AMOUNTS ARE HIDDEN IN OTHER AGENCY BUDGETS MEANWHILE THE CENTRAL INTELLIGENCE AGENCY LAST WEEK TOLD THE SENATE GOVERNMENT AFFAIRS COMMITTEE THAT THE RUSSIAN GOVERNMENT'S POWER TO CONTROL THE EXODUS OF ITS WEAPONS SCIENTISTS HAS LARGELY EVAPORATED A CENTRALIZED AUTOMATED DATA SYSTEM CONTAINING INFORMATION ON CITIZENS WHO POSSESS STATE SECRETS DOES NOT EXIST THE CIA NOTED IN A WRITTEN STATEMENT RUSSIA'S INTERNAL AFFAIRS MINISTRY WHICH ISSUES PASSPORTS HAS BEEN OVERWHELMED WITH REQUESTS AND CORRUPTED BY BLACK MARKET OPERATORS AND COMMERCIAL FIRMS GENERATING PASSPORTS AND VISAS ON SHORT NOTICE THE CIA SAID THE POTENTIAL PROBLEM WAS ANTICIPATED BY BOTH THE BUSH ADMINISTRATION AND KEY COMMITTEES IN CONGRESS IN THE WINTER OF 1991 THE US THEN COMMITTED 35 MILLION TO ESTABLISH CENTERS IN MOSCOW AND KIEV THAT WOULD FUNCTION AS JOB CLEARINGHOUSES FOR FORMER MILITARY SCIENTISTS SEEKING COMMERCIAL RESEARCH WORK THOUGH JAPAN CANADA AND EUROPEAN COUNTRIES LATER BOOSTED THE FUNDING TO NEARLY 70 MILLION OBJECTIONS FROM RUSSIA'S PARLIAMENT AND FROM UKRAINE POLITICIANS STOPPED THE CENTERS FROM OPENING THE STATE DEPARTMENT OFFICIAL SAID PREPARATORY WORK ON THE CENTERS IS COMPLETED CITING ECONOMIC DESPERATION BEING FACED BY NUCLEAR EXPERTS IN SUCH CLOSED MILITARY CITIES AS ARZAMAS16 AND CHELYABINSK70 THE OFFICIAL SAID WE ARE REALLY SEEING THE CONDITIONS NOW TO WHICH THESE CENTERS WERE DESIGNED TO RESPOND 9310140157 931014 FIRST INVESTORS AGREES TO SETTLE STATES' LITIGATION BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FIRST INVESTORS CORP SETTLED LITIGATION WITH FIVE STATES AGREEING TO PAY 75 MILLION TO A RESTITUTION FUND THE COMPANY AND THE NEW YORK STATE ATTORNEY GENERAL SAID THE LITIGATION WAS OVER THE FATE OF INVESTORS IN TWO FIRST INVESTORS JUNKBOND FUNDS THE SETTLEMENT CLEARS THE WAY FOR FIRST INVESTORS TO END THREE YEARS OF LITIGATION OVER SALES PRACTICES AT THE TWO MUTUAL FUNDS FIRST INVESTORS FUND FOR INCOME AND FIRST INVESTORS HIGH YIELD LAST YEAR AS PART OF AN AGREEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FIRST INVESTORS AGREED TO PAY 25 MILLION TO SETTLE INVESTORS' CLAIMS ON THE TWO FUNDS YESTERDAY'S SETTLEMENT ALSO WILL ALLOW FIRST INVESTORS TO SETTLE A CLASSACTION LAWSUIT WHICH THE FIVE STATES HAD BLOCKED FOR 900000 COUNTING THE EARLIER SETTLEMENT OF THE SEC CIVIL CASE FIRST INVESTORS WHICH MANAGES 38 BILLION IN ASSETS WILL HAVE PAID A TOTAL OF 331 MILLION INTO THE RESTITUTION FUND WHICH THE NEW YORK ATTORNEY GENERAL'S OFFICE SAYS IS THE LARGEST RECOVERY EVER FROM A MUTUAL FUND GROUP IN AGREEING TO THE SETTLEMENT FIRST INVESTORS BASED IN NEW YORK DIDN'T ADMIT ANY LIABILITY OR WRONGDOING WE THINK THIS IS A VERY FAIR SETTLEMENT MICHAEL S MILLER FIRST INVESTORS CHIEF EXECUTIVE SAID IN AN INTERVIEW WE'RE ANXIOUS TO GET ON WITH OUR BUSINESS FIRST INVESTORS SAID THAT NONE OF ITS OTHER 43 MUTUAL FUNDS WAS INVOLVED IN THE REGULATORY PROCEEDINGS AND THAT THE TWO JUNKBOND FUNDS INVOLVED HAVE REPORTED SIGNIFICANT GAINS IN RECENT YEARS AS THE JUNKBOND MARKET HAS RECOVERED AT ONE TIME THE NEW YORK ATTORNEY GENERAL'S OFFICE THOUGHT INVESTORS HAD LOST AS MUCH AS 1 BILLION IN FIRST INVESTORS' FUNDS NOW A SPOKESMAN FOR THAT OFFICE SAYS INVESTORS' LOSSES WERE MORE PROBABLY FROM 100 MILLION TO SEVERAL HUNDRED MILLION DOLLARS HE SAID THE LOSSES WERE GREATEST AMONG INVESTORS WHO BAILED OUT OF THE FUNDS BEFORE THEIR RECOVERY MANY OF WHOM WERE VERY INAPPROPRIATE INVESTORS WHOSE RISK TOLERANCE WAS NOT GREAT WHO SHOULD NOT HAVE BEEN SOLD A RISKY INVESTMENT FIRST INVESTORS USED AGGRESSIVE SALES TACTICS AND PREYED ON UNSOPHISTICATED INVESTORS ASSURING THEM THAT THE TWO FUNDS WERE SAFE' NEW YORK ATTORNEY GENERAL ROBERT ABRAMS SAID IN A STATEMENT FOUR OFFICERS AND SALES DIRECTORS OF FIRST INVESTORS AND ITS FUNDS WILL BE SUSPENDED AS SUPERVISORS FOR THREE TO NINE MONTHS THE ATTORNEY GENERAL'S OFFICE SAID BESIDES NEW YORK THE FOUR OTHER STATES IN THE SETTLEMENT ARE MAINE MASSACHUSETTS VIRGINIA AND WASHINGTON THE NEW YORK ATTORNEY GENERAL'S OFFICE SAID THE SEC WOULD DETERMINE WHICH INVESTORS WOULD BE ELIGIBLE FOR RESTITUTION 9310140156 931014 WHO'S NEWS RURAL/METRO CORP RURAL/METRO CORP SCOTTSDALE ARIZ WILLIAM COCHRANE TURNER WAS ELECTED A DIRECTOR INCREASING THE BOARD TO NINE MEMBERS MR TURNER 64 YEARS OLD IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ARGYLE ATLANTIC CORP RURAL/METRO PROVIDES AMBULANCE FIRE PROTECTION AND OTHER SAFETYRELATED SERVICES 9310140154 931014 METROTEL FUJI TECOM SIGN PACT JERICHO NY METROTEL CORP SAID IT SIGNED AN EXCLUSIVE DISTRIBUTOR AGREEMENT WITH JAPAN'S FUJI TECOM INC COVERING THE TELEPHONE AND ELECTRICUTILITY MARKETS IN THE US TERMS WEREN'T DISCLOSED THE MAKER OF TELEPHONE TEST EQUIPMENT AND PERIPHERAL TELEPHONE PRODUCTS SAID IT WILL SELL FUJI TECOM'S BURIED CABLE AND PIPELOCATING EQUIPMENT THROUGH ITS EXISTING DISTRIBUTOR 9310140153 931014 ASSET INVESTORS SPINOFF DENVER ASSET INVESTORS CORP A REAL ESTATE INVESTMENT TRUST SAID THAT IT COMPLETED ITS PREVIOUSLY ANNOUNCED DISTRIBUTION OF 70 OF THE SHARES OF COMMERCIAL ASSETS INC AND THAT THE NEW REIT BEGAN TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE STOCKHOLDERS OF ASSET INVESTORS RECEIVED ONE SHARE OF COMMERCIAL ASSETS FOR EVERY TWO SHARES OF ASSET INVESTORS 9310140152 931014 AD TOUTING INVESTMENT ADVISER'S SKILLS STIRS A STORM BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL INVESTMENT ADVISER STEPHEN LEEB MADE A SPLASH WHEN HIS NEWSLETTER PUBLISHER BRAGGED THAT HIS STOCK MARKET SYSTEM WOULD HAVE REAPED A 390900 GAIN SINCE 1980 AND OFFERED 10000 TO THE FIRST PERSON FINDING A BETTER PERFORMER BIG MISTAKE THE PUBLISHER LOST THE BET AND NOW THE SECURITIES AND EXCHANGE COMMISSION IS INQUIRING INTO THE ADVERTISING PRACTICES OF MR LEEB'S NEWSLETTERS HOW DID A FELLOW IN PALISADES PARK NJ BILLED BY HIS PUBLISHER AS THE 40 MILLION MAN WIND UP COSTING HIS PUBLISHER MONEY AND ATTRACTING THE SEC'S SCRUTINY OF HIS PROMOTIONAL MATERIALS IT APPEARS MR LEEB NEVER DID NEARLY AS WELL AS THE BROCHURE IMPLIED AT FIRST GLANCE AND THE RECENT 10000 CHALLENGE JUST CALLED ATTENTION TO THE PROBLEM THE TALE OFFERS A LESSON TO ANYONE WHO READS INVESTMENT NEWSLETTERS OR PICKS THEM BY THEIR ADS IT ALL BEGAN LAST WINTER WITH A DIRECTMAIL BROCHURE YOU WOULD HAVE TURNED 10000 INTO 39160394 SINCE 1980 BY USING DR STEPHEN LEEB'S MASTER KEY MARKETTIMING SYSTEM THE BROCHURE BRAGGED THE PUBLISHERS OF THE BIG PICTURE WILL AWARD 10000 CASH TO THE FIRST PERSON WHO KNOWS OF ANYONE WHO HAS SURPASSED THIS RECORD PERFORMANCE THE BIG PICTURE IS ONE OF MR LEEB'S NEWSLETTERS GOTCHA REPLIED FRANK TAUCHER OF TULSA OKLA I'M BETTER SO GIVE ME THE REWARD NO DICE HE WAS TOLD INITIALLY BUT RECENTLY HE SAYS HE DID GET A CHECK FOR 10000 MR LEEB'S PUBLISHER SAID THE DELAY IN AWARDING THE PRIZE REFLECTS A MATH ERROR ON ITS OWN PART THAT PUBLISHER IS KCI COMMUNICATIONS OF ALEXANDRIA VA A UNIT OF CLOSELY HELD NATIONAL INFORMATION CORP NATIONAL PUBLISHES ABOUT A DOZEN NEWSLETTERS INCLUDING KCI'S FIVE THREE OF WHICH ARE WRITTEN BY MR LEEB VETERANS' VIEWS SO IF MR LEEB ISN'T THE BEST HOW GOOD IS HE AT PICKING STOCKS NOT AS GOOD AS HE LOOKS IN THE BROCHURE INDUSTRY VETERANS SAY THAT'S WHY IT PAYS FOR INVESTORS TO LOOK HARD AT SUCH CLAIMS AN INVESTOR CAREFULLY READING KCI'S 40 MILLION CHALLENGE WOULD SEE THAT THE KINGSIZED PERFORMANCE CLAIM DOESN'T APPLY TO MR LEEB'S ACTUAL ADVICE FROM 1980 THROUGH 1992 RATHER IT APPLIES TO MR LEEB'S CURRENT MARKETTIMING SYSTEM APPLIED RETROACTIVELY ACADEMICS AND MONEY MANAGERS SAY IT'S EASY TO USE SUCH A RETROSPECTIVE APPROACH TO MAKE A FORTUNE ON PAPER BUT THEN MR LEEB'S NUMBERS WEREN'T ACHIEVED IN REAL LIFE THE BROCHURE ASSUMES THAT AN INVESTOR WOULD RELY HEAVILY ON BORROWED MONEY 500 LEVERAGE TO MAGNIFY INVESTMENT RETURNS AT CRUCIAL MOMENTS USE OF SUCH HEAVY LEVERAGE IS AN EXTREMELY SPECULATIVE TECHNIQUE THAT MR LEEB DIDN'T ADVOCATE IN REAL LIFE OR IN HIS NEWSLETTER MOREOVER AS MR LEEB AGREES SOME OF THE DATES OF BUY AND SELL SIGNALS IN THE AD AREN'T THE SAME AS THOSE HE GAVE AT THE TIME MR LEEB SAYS THE DIFFERENCES IN TIMING AREN'T ESPECIALLY LARGE FOR EXAMPLE HE SAYS A SIGNAL NOW ASSIGNED TO OCTOBER MIGHT HAVE BEEN IN MARCH SOME OF THESE TROUBLESOME POINTS WERE RAISED BY VETERAN NEWSLETTER SCORER MARK HULBERT EARLIER THIS YEAR FOR HIS PART MR LEEB SAYS HE LACKS VETO POWER OVER KCI'S ADVERTISING AND THAT OFTEN HE DOESN'T EVEN READ IT I HAVE ALMOST NOTHING TO DO WITH THEIR MARKETING HE SAYS IT'S REALLY APART FROM ME HE TERMS KCI'S ADVERTISING VERY AGGRESSIVE AND ITS EXECUTIVES HONEST KCI POINTS OUT THAT IT HAS PAID OUT 10000 PRIZES TO TWO DESERVING PARTIES BECAUSE OF THE DELAY INVOLVING MR TAUCHER MR TAUCHER SAYS THE TRADES HE SUBMITTED TO CLAIM THE AWARD WERE STRICTLY HYPOTHETICAL PLEASE DON'T MAKE IT APPEAR THAT THESE KIND OF RESULTS ARE POSSIBLE IN REAL LIFE MR TAUCHER SAYS FOR ONE THING YOU'D RUN UP AGAINST EXCHANGE LIMITS NOT TO MENTION THAT IF 30000 SUBSCRIBERS MANAGED TO AMASS NEARLY 40 MILLION APIECE THEY WOULD BE SITTING ON A TOTAL AMOUNT EQUAL TO ABOUT ONEFIFTH OF THE US GROSS DOMESTIC PRODUCT 9310140151 931013 INTERNATIONAL JAPAN GETS ON TRACK TO REPAY THE BRITISH FOR ASIA'S RAILROADS TOKYO'S EXPORTIMPORT BANK MAY TAKE PART IN A CREDIT FOR LONDON AIRPORT LINE BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO A CENTURY AGO BRITAIN BUILT THE GREAT RAILWAYS OF ASIA NOW IT SEEMS THE JAPANESE MAY FINANCE THE RAILWAYS OF BRITAIN JAPAN'S EXPORTIMPORT BANK IS CONSIDERING PARTICIPATING IN A 250 MILLION INTERNATIONAL CREDIT FOR A PROJECT TO BUILD A HIGHSPEED RAILWAY BETWEEN HEATHROW AIRPORT AND PADDINGTON STATION IN LONDON A SPOKESWOMAN FOR LONDONBASED BAA PLC WHICH OPERATES MANY BRITISH AIRPORTS SAID THE JAPANESE GOVERNMENT AGENCY HAS EXPRESSED INTEREST IN EXTENDING CAPITAL TO HELP BUILD THE RAILLINK AN EXPORTIMPORT BANK OFFICIAL DECLINED TO COMMENT AFTER LOCAL MEDIA REPORTS SUGGESTED THAT THE TOKYOBASED INSTITUTION MAY BE WILLING TO EXTEND AS MUCH AS 150 MILLION OF THE LONDON PROJECT'S COST THE POTENTIAL TRANSACTION WOULD MARK SOMETHING OF A HISTORICAL ROLEREVERSAL FOR YEARS BRITAIN WAS THE SOURCE OF CAPITAL AND EXPERTISE FOR MUCH OF THE WORLD'S RAILROADS HALF THE TRAINS PUFFING AWAY IN INDIA TODAY WERE BUILT IN BRITAIN SAYS CHRIS CALDERWOOD ECONOMIST AT BARCLAYS DE ZOETE WEDD SECURITIES IN TOKYO THAT JAPAN MAY FINANCE BRITAIN'S RAILROAD INDUSTRY OF ALL INDUSTRIES IS IRONIC INCREASINGLY JAPAN'S EXPORTIMPORT BANK IS BANKROLLING PUBLIC WORKS PROJECTS IN SEVERAL INDUSTRIALLY ADVANCED COUNTRIES AS A MEANS OF RECIRCULATING THE NATION'S MAMMOTH CAPITAL SURPLUS LAST MONTH THE EXPORTIMPORT BANK SAID IT WILL GUARANTEE EIGHT BILLION YEN IN LOANS ADVANCED BY JAPANESE PRIVATE FINANCE INSTITUTIONS FOR A RAILROAD DEVELOPMENT IN GREECE IN A SIMILAR MOVE THE EXPORTIMPORT BANK ALSO IS TAKING A 15 EQUITY STAKE IN A 120 MILLION EXPORT FACILITY IN LOS ANGELES THE EXPORTIMPORT BANK SPOKESMAN SAID THE BANK ALSO IS CONSIDERING EXTENDING FOR THE FIRST TIME UNTIED LOANS OR LOANS NOT LINKED TO PURCHASES OF JAPANESE GOODS AND SERVICES TO COUNTRIES IN NORTH AMERICA AND EUROPE MANY ECONOMISTS IN JAPAN INTERPRET THE DEVELOPMENTS AS AN ATTEMPT TO APPEASE TRADING PARTNERS WHO HAVE LONG COMPLAINED BECAUSE MORE CAPITAL FLOWS INTO JAPAN THAN FLOWS OUT JAPAN IS TRYING TO SHOW IT IS DOING EVERYTHING IT CAN TO RECYCLE FUNDS OVERSEAS SAID DONALD KIMBALL SENIOR ECONOMIST AT MITSUBISHI BANK THE JAPANESE FINANCE MINISTRY SAID THAT IN THE YEAR TO MARCH 1993 JAPAN'S CAPITAL SURPLUS WITH THE WORLD REACHED A POSTWAR HIGH OF ABOUT 126 BILLION TALK OF MORE JAPANESE GOVERNMENT FUNDING OF PROJECTS ABROAD COMES AS JAPANESE PRIVATE INSTITUTIONS MIRED IN AN ECONOMIC SLUMP AT HOME ARE SLOWING INTERNATIONAL LENDING AND INVESTMENT 9310140150 931014 STRIKER PETROLEUM NAME CHANGE HOUSTON STRIKER PETROLEUM CORP COMPLETED ITS REORGANIZATION BY MERGER AND NAME CHANGE TO STRIKER INDUSTRIES INC THE COMPANY ALSO SAID IT DECREASED THE NUMBER OF ITS AUTHORIZED COMMON SHARES TO 25 MILLION WITH A SIMULTANEOUS 1FOR20 REVERSE SPLIT OF ITS ISSUED COMMON STOCK AS HAD BEEN EXPECTED STRIKER SAID IT NOW HAS 5585333 COMMON SHARES OUTSTANDING 9310140149 931014 DIVIDEND NEWS ENRON CORP ENRON CORP RAISED ITS QUARTERLY DIVIDEND 7 TO 1875 CENTS A SHARE FROM 175 CENTS PAYABLE DEC 20 TO STOCK OF RECORD DEC 1 THE HOUSTON GAS COMPANY SAID THE INCREASE REFLECTS LONGTERM GROWTH PROSPECTS EARLIER THIS YEAR ENRON DECLARED A 2FOR1 STOCK SPLIT PAYABLE AUG 16 TO STOCK OF RECORD JULY 26 THE NEW DIVIDEND IS PAYABLE ON THE POSTSPLIT SHARES 9310140148 931014 FINANCING BUSINESS INTELLICALL INC INTELLICALL INC DALLAS SAID IT PLANS TO SELL ABOUT TWO MILLION COMMON SHARES THROUGH A PUBLIC OFFERING BY DECEMBER PROCEEDS WILL BE USED TO REPAY DEBT AND FOR GENERAL CORPORATE PURPOSES THE MAKER OF PAY TELEPHONES CURRENTLY HAS ABOUT 75 MILLION SHARES OUTSTANDING INTELLICALL SAID THE ACTUAL NUMBER OF SHARES TO BE OFFERED WILL DEPEND ON MARKET CONDITIONS AT THE TIME OF THE SALE 9310140147 931014 GUY F ATKINSON JOINT VENTURE SAN BRUNO CALIF GUY F ATKINSON CO SAID A JOINT VENTURE BETWEEN ITS ATKINSON CONSTRUCTION UNIT AND A CLOSELY HELD CONSTRUCTION FIRM HAS RECEIVED A 173 MILLION CONTRACT FROM CLARK COUNTY NEV FOR A RUNWAY EXTENSION AND RESIGNING PROJECT AT MCCARRAN INTERNATIONAL AIRPORT IN LAS VEGAS IN A NEWS RELEASE ATKINSON SAID THE PROJECT WILL BEGIN IMMEDIATELY WITH COMPLETION SCHEDULED FOR OCT 1 1994 9310140146 931014 GROUP CUTS STAKE IN FORSCHNER WASHINGTON A GROUP INCLUDING LOUIS MARX JR A NEW YORK INVESTOR AND BRAE GROUP INC HOUSTON SAID IT CUT TO 12 ITS STAKE IN FORSCHNER GROUP INC SHELTON CONN IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION BRAE SAID IT SOLD 72250 SHARES BETWEEN AUG 31 AND SEPT 24 FOR 16 EACH THE GROUP SAID IT NOW HOLDS 816652 COMMON SHARES OF THE MAKER OF CUTLERY WATCHES AND SUNGLASSES 9310140145 931014 WHO'S NEWS VIACOM INC VIACOM INC NEW YORK NATHANIEL FUCHS WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT HUMAN RESOURCES DEVELOPMENT OF SHOWTIME NETWORKS INC A UNIT OF THIS ENTERTAINMENT AND COMMUNICATIONS CONCERN MR FUCHS WAS PREVIOUSLY DIRECTOR HUMAN RESOURCES DEVELOPMENT AT SHOWTIME A CABLE SERVICES COMPANY 9310140144 931014 WHO'S NEWS DUSA PHARMACEUTICALS INC DUSA PHARMACEUTICALS INC DENVILLE NJ THIS DRUG COMPANY APPOINTED STUART L MARCUS 47 YEARS OLD VICE PRESIDENT SCIENTIFIC AFFAIRS A NEW POSITION DR MARCUS HAD BEEN GROUP DIRECTOR IN THE MEDICAL RESEARCH DIVISION OF AMERICAN CYANAMID CO A MEDICAL AGRICULTURAL AND CHEMICAL CONCERN 9310140143 931014 WHO'S NEWS SIZZLER INTERNATIONAL INC SIZZLER INTERNATIONAL INC LOS ANGELES KEVIN PERKINS PRESIDENT OF ASIA/PACIFIC OPERATIONS WAS NAMED PRESIDENT OF THE COMPANY EFFECTIVE MAY 1 IN HIS NEW POST MR PERKINS 42 WILL BE RESPONSIBLE FOR ALL DOMESTIC AND INTERNATIONAL OPERATIONS AND WILL REPORT TO RICHARD P BERMINGHAM 54 WHO IS CURRENTLY PRESIDENT OF THIS RESTAURANT CHAIN AND WHO WILL REMAIN CHIEF EXECUTIVE OFFICER 9310140142 931014 WHO'S NEWS REVCO DS INC REVCO DS INC TWINSBURG OHIO CARL A BELLINI 59 EXECUTIVE VICE PRESIDENT OF THIS DRUGSTORE CHAIN WAS NAMED TO THE ADDITIONAL POST OF CHIEF OPERATING OFFICER HE SUCCEEDS D DWAYNE HOVEN PRESIDENT AND CHIEF EXECUTIVE WHO EFFECTIVELY STEPPED DOWN AS OPERATING CHIEF WHEN HE WAS NAMED CHIEF EXECUTIVE AUG 30 9310140141 931014 WHO'S NEWS LESLIE FAY COS LESLIE FAY COS NEW YORK DONALD W OCHS 51 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF WORLDWIDE SOURCING AND MANUFACTURING A NEW POSITION AT THIS WOMEN'S FASHION APPAREL CONCERN HE WAS PREVIOUSLY A SENIOR VICE PRESIDENT WITH LIZ CLAIBORNE INC ALSO JOAN RUBY 39 WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT LEGAL AFFAIRS SHE WAS FORMERLY AN EXECUTIVE VICE PRESIDENT WITH NORMA KAMALI INC 9310140140 931014 INTERNATIONAL TOKYO ELECTRIC'S REPAIR COSTS TOKYO JAPAN'S TOKYO ELECTRIC POWER CO WILL REDUCE THE AMOUNT OF FUNDS TO BE SPENT ON FACILITY REPAIR COSTS BY 18 BILLION YEN 1699 MILLION IN THE SECOND HALF OF THE YEAR ENDING MARCH 31 A SPOKESMAN SAID THOUGH THE ELECTRIC UTILITY HAD PLANNED TO SPEND ROUGHLY 630 BILLION YEN ON REPAIRS IN THE FISCAL YEAR THE LOWERING OF ELECTRICITY CHARGES THAT WILL BEGIN IN NOVEMBER WILL MAKE IT NECESSARY TO CUT BACK SPENDING IN ORDER TO EASE THE EFFECTS FROM THE RATE CUT ON EARNINGS HE SAID 9310140139 931014 VLSI POSTS RECORD 3RDPERIOD PROFIT STOCK SINKS 14 BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL SAN JOSE CALIF VLSI TECHNOLOGY INC REPORTED RECORD THIRDQUARTER NET INCOME OF 75 MILLION BUT ITS STOCK SANK 14 IN HEAVY TRADING THE STOCK'S DECLINE APPARENTLY WAS AT LEAST PARTLY BECAUSE OF INVESTOR CONCERN OVER THE SEMICONDUCTOR MAKER'S PLAN TO OFFER SIX MILLION NEW COMMON SHARES EARNINGS EQUALED 21 CENTS A SHARE AND WERE WELL ABOVE ANALYSTS' ESTIMATES OF ABOUT 15 CENTS A SHARE REVENUE FOR THE PERIOD SPURTED 31 TO 1373 MILLION FROM 1049 MILLION A YEAR AGO THE COMPANY HAD A NET LOSS OF 3 MILLION OR 10 CENTS A SHARE IN THE LATEST PERIOD THE COMPANY HAD 362 MILLION SHARES OUTSTANDING A YEAR AGO THAT FIGURE WAS 29 MILLION IN NATIONAL TRADING YESTERDAY ON THE OVERTHECOUNTER MARKET VLSI'S STOCK CLOSED AT 14625 OFF 2375 A SHARE ON VOLUME OF 42 MILLION SHARES MORE THAN FIVE TIMES THE STOCK'S AVERAGE DAILY VOLUME THE COMPANY ALSO REPORTED IT WOULD OFFER THE SIX MILLION SHARES TO RAISE MONEY TO EXPAND ITS CHIPPRODUCTION PLANTS AMONG OTHER THINGS THE OFFERING WOULD INCREASE ITS SHARES OUTSTANDING BY ABOUT 17 INVESTORS APPARENTLY ARE WORRIED ABOUT THE DILUTION SAID MARK EDELSTONE SENIOR TECHNOLOGY ANALYST WITH PRUDENTIAL SECURITIES INC A UNIT OF PRUDENTIAL INSURANCE CO VLSI ALSO MAY HAVE FALLEN VICTIM TO THE MARKET'S OVERALL CUFFING OF CHIP COMPANY STOCKS YESTERDAY MANY INCLUDING SHARES OF INTEL CORP TEXAS INSTRUMENTS INC AND LSI LOGIC CORP WERE DOWN SIGNIFICANTLY THAT APPARENTLY WAS A REACTION TO TUESDAY'S ANNOUNCEMENT THAT A KEY SEMICONDUCTORINDUSTRY INDICATOR THE BOOKTOBILL RATIO FELL TO 101 IN SEPTEMBER THAT MEANS THAT FOR EVERY 100 OF CHIPS SHIPPED THE INDUSTRY RECEIVED 101 OF NEW ORDERS THE 101 RATIO IS CONSIDERED HEALTHY BUT IT IS DOWN FROM EARLIER MONTHS MR EDELSTONE AND OTHER ANALYSTS CALLED THE MARKET RESPONSE AN OVERREACTION GREGORY K HINCKLEY VLSI'S CHIEF FINANCIAL OFFICER SPECULATED THAT THE PLANNED STOCK OFFERING AND THE BOOKTOBILL RATIO CONTRIBUTED TO THE STOCK'S DROP WE HAD THE BEST QUARTER IN COMPANY HISTORY AND EXPECT THE STOCK TO EVENTUALLY REFLECT THE UNDERLYING STRENGTH OF THE COMPANY HE SAID FOR THE NINE MONTHS VLSI EARNED 83 MILLION OR 24 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 68 MILLION OR 25 CENTS A SHARE REVENUE FOR THE PERIOD ROSE 22 TO 3826 MILLION FROM 3138 MILLION 9310140138 931014 PERSEPTIVE AGREES TO BUY VESTEC CAMBRIDGE MASS PERSEPTIVE BIOSYSTEMS INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE VESTEC CORP A PRIVATELY HELD SCIENCE RESEARCH FIRM IN HOUSTON PERSEPTIVE SAID THE AGREEMENT CALLS FOR THE ISSUANCE OF 203079 NEWLY ISSUED PERSEPTIVE COMMON SHARES TO VESTEC'S SHAREHOLDERS A SPOKESWOMAN FOR PERSEPTIVE COULDN'T IMMEDIATELY ASSIGN A VALUE TO THE TRANSACTION WHICH IS EXPECTED TO CLOSE IN THE NEAR FUTURE IN NATIONAL OVERTHECOUNTER TRADING PERSEPTIVE SHARES ROSE 275 OR 12 TO 2625 9310140137 931014 TECHNOLOGY & HEALTH DRUG MAY BLOCK TISSUE DAMAGE FROM AILMENTS BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPANESE SCIENTISTS SAID THEY HAVE DEMONSTRATED A DRUG THAT COULD PREVENT TISSUE DAMAGE CAUSED BY HEART ATTACKS AND STROKE WITHOUT HARMFUL SIDE EFFECTS THE SAME DRUG ALSO HOLDS THE POTENTIAL TO FIGHT A VARIETY OF OTHER DISEASES SUCH AS RHEUMATOID ARTHRITIS AND PSORIASIS RESEARCHERS SAID THE COMMON THEME IN THESE DISEASES IS INFLAMMATION THE REDDENING AND SWELLING THAT USUALLY OCCURS WHEN TISSUE IS INJURED OR IRRITATED BY GERMS OR CHEMICALS ARTHRITIS AND PSORIASIS INFLAME TISSUE IN OBVIOUS WAYS CAUSING JOINTS TO SWELL OR SCALY PATCHES TO APPEAR ON THE SKIN HEART ATTACKS STROKE AND FROSTBITE ALSO CAUSE INFLAMMATION ALTHOUGH MORE INDIRECTLY EACH OF THESE CONDITIONS INTERRUPT THE FLOW OF BLOOD TO HEALTHY TISSUE FOR A PERIOD OF MINUTES TO HOURS FOR REASONS THAT HAVEN'T BEEN WELL UNDERSTOOD RESTORING THE BLOOD FLOW USUALLY INFLAMES THAT TISSUE OFTEN CAUSING MORE INJURY THAN THE ORIGINAL INTERRUPTION OF BLOOD NOW A TEAM LED BY KOUJI MATSUSHIMA AN IMMUNOLOGIST AT KANAZAWA UNIVERSITY HAS IDENTIFIED WHAT APPEARS TO BE THE PRIMARY CULPRIT IN INFLAMMATION AN OBSCURE PROTEIN KNOWN AS INTERLEUKIN8 OR IL8 THAT NORMALLY REGULATES THE ACTIVITY OF THE WHITE BLOOD CELLS THAT FIGHT INFECTION SINCE WHITE BLOOD CELLS EMIT CHEMICALS THAT CAUSE INFLAMMATION SCIENTISTS HAVE LONG SUSPECTED THAT IL8 PLAYS A ROLE IN THESE CONDITIONS ALTHOUGH ITS ROLE HAD NEVER BEEN PROVEN DR MATSUSHIMA'S TEAM HAS FOUND THAT PROOF THE RESEARCHERS OPERATED ON RABBITS TO CUT OFF BLOOD FLOW TO THEIR LEFT LUNGS FOR A PERIOD OF TWO HOURS THEN RESTORED THE FLOW FOR SEVERAL MORE HOURS WHEN THE SCIENTISTS KILLED THE RABBITS AND TESTED THEIR LUNG TISSUE THEY FOUND IT HAD BEEN RAVAGED BY WHITE BLOOD CELLS AND THAT A HIGH CONCENTRATION OF IL8 CREATED BY A CHEMICAL PROCESS THAT STARTED WHEN THE BLOOD RETURNED HAD DRAWN THEM THERE THE RESEARCHERS ALSO FOUND THAT A DRUG MADE FROM A MOUSE ANTIBODY COULD PREVENT THE INFLAMMATION BY COUNTERACTING THE EFFECTS OF IL8 IF INJECTED JUST AS THE BLOOD WAS RETURNING TO THE RABBITS' LUNGS THE EFFECT WAS VERY VERY DRAMATIC SAID DR MATSUSHIMA IT EFFECTIVELY NEGATED ALL THE DAMAGE WE HAD EARLIER SEEN IN OTHER RABBITS THE TEAM REPORTS ITS FINDINGS IN TODAY'S ISSUE OF THE SCIENTIFIC JOURNAL NATURE DR MATSUSHIMA NOW HAS HIGH HOPES OF DEVELOPING A SIMILAR DRUG MADE FROM HUMAN ANTIBODIES THAT CAN BE USED TO MAKE ORGAN TRANSPLANTS SAFER AND TO TREAT HEART ATTACKS DOCTORS CURRENTLY USE STEROIDS FOR THESE PURPOSES WHICH SUPPRESS INFLAMMATION BUT CAUSE SIDE EFFECTS HE ALSO HOPES THE DRUG'S EFFECT ON IL8 WILL MAKE IT A GOOD CANDIDATE FOR TREATING ARTHRITIS AND PSORIASIS WITHOUT SIDE EFFECTS 9310140136 931014 MARKETING & MEDIA CBS NET SOARED IN 3RD QUARTER PAYOUT IS DOUBLED BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CBS INC SAID THIRDQUARTER NET INCOME ALMOST TRIPLED TO A RECORD 1183 MILLION BECAUSE OF A SUBSTANTIAL INCREASE IN OPERATING PROFIT AT THE CBS TELEVISION NETWORK AS WELL AS SOME ONETIME GAINS THE COMPANY ALSO SAID IT EXPECTS RECORD 1993 FULLYEAR EARNINGS FROM CONTINUING OPERATIONS AND IT DOUBLED ITS QUARTERLY COMMON STOCK DIVIDEND TO 50 CENTS A SHARE THE NEWS SENT CBS SHARES UP 875 OR 32 TO CLOSE AT 285125 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY CBS SAID REVENUE FOR THE QUARTER ROSE 12 TO 7526 MILLION FROM 6722 MILLION NET WAS 1183 MILLION OR 739 A SHARE COMPARED WITH 427 MILLION OR 276 A SHARE A YEAR EARLIER THE COMPANY SAID SALES AT THE TOPRATED CBS TELEVISION NETWORK INCREASED 15 IN THE THIRD QUARTER AND THAT REMAINING FOURTHQUARTER ADVERTISING SPOTS ARE SELLING AT A PREMIUM TO ADS THE NETWORK SOLD BEFORE THE FALL SEASON STARTED CBS SAID AD PRICES ROSE IN PRIMETIME DAYTIME AND NEWS AS WELL AS LATENIGHT WHICH BENEFITED FROM THE ADDITION OF LATE SHOW WITH DAVID LETTERMAN THE SALES INCREASE ALSO REFLECTS THE ABSENCE OF POLITICAL CONVENTION COVERAGE WHICH AIRED DURING THE THIRD QUARTER OF 1992 AND REDUCED ADVERTISING REVENUE PROFIT ROSE AT THE COMPANY'S TELEVISION STATIONS AND RADIO DIVISIONS AIDED IN PART BY LOWER OPERATING COSTS THE THIRDQUARTER RESULTS INCLUDED ONETIME GAINS THAT TOTALED ALMOST 320 A SHARE FROM THE CONCLUSION OF CERTAIN LEGAL AND TAX AUDIT PROCEEDINGS AND THE ADJUSTMENT OF DEFERRED TAX BENEFITS AMONG THOSE ONETIME GAINS WAS THE SETTLEMENT OF A LONGRUNNING LAWSUIT WITH VIACOM INC'S VIACOM INTERNATIONAL INC UNIT OVER PAYMENT FOR RIGHTS GRANTED VIACOM TO DISTRIBUTE CERTAIN CBS SHOWS THAT GAIN AMOUNTED TO 113 A SHARE FOR THE FIRST NINE MONTHS OF 1993 NET ROSE 487 TO 2799 MILLION OR 1762 A SHARE FROM 477 MILLION OR 308 A SHARE FOR THE FIRST NINE MONTHS OF 1992 WHEN RESULTS WERE REDUCED SHARPLY BY ACCOUNTING CHANGES PROFIT FROM CONTINUING OPERATIONS ROSE 117 TO 2799 MILLION FROM 1292 MILLION FOR THE FIRST NINE MONTHS OF 1992 REVENUE FELL 3 TO 247 BILLION FROM 253 BILLION CBS SAID ITS EFFECTIVE INCOMETAX RATE WAS 19 FOR THIS YEAR'S THIRD QUARTER COMPARED WITH 29 A YEAR EARLIER THE INCREASED DIVIDEND IS PAYABLE DEC 13 TO STOCK OF RECORD NOV 24 THE PREVIOUS 25CENTSASHARE DIVIDEND HAD BEEN IN EFFECT SINCE THE FIRST QUARTER OF 1991 WHEN THE COMPANY SLASHED THE DIVIDEND FROM 110 9310140135 931014 WHO'S NEWS MCI COMMUNICATIONS CORP MCI COMMUNICATIONS CORP WASHINGTON STEVE JOHNSON 42 WAS NAMED CONSUMER MARKETS VICE PRESIDENT OF NEW TECHNOLOGIES AND PRODUCT DEVELOPMENT A NEW POST HE HAD BEEN CONSUMER MARKETS DIRECTOR OF OPERATOR SERVICES IN ADDITION THOMAS J KILCOYNE 38 WAS NAMED VICE PRESIDENT OF MARKETING AND COMMUNICATIONS SUCCEEDING ANGELA DUNLAP 36 WHO BECAME PRESIDENT OF CONSUMER MARKETS IN A PREVIOUSLY REPORTED MOVE MR KILCOYNE HAD BEEN CHIEF MARKETING OFFICER AND FOUNDING PARTNER OF START INC A CONSUMER FINANCIAL SERVICES COMPANY 9310140134 931014 EUROSCLEROSIS SPREADS TO OUR SHORES BY DAVID R HENDERSON WOULDN'T YOU THINK THAT THE STELLAR GROWTH IN US JOBS IN THE 1980S ESPECIALLY COMPARED WITH EUROPE WOULD MAKE OUR POLITICIANS WANT TO AVOID THE POLICIES THAT CAUSED EUROSCLEROSIS WELL THINK AGAIN IMITATING EUROPEAN LABOR MARKET POLICIES IS EXACTLY WHAT PRESIDENT BUSH DID TO SOME EXTENT AND WHAT PRESIDENT CLINTON IS DOING FASTER WHEN A LARGE FRACTION OF THE UNEMPLOYED POPULATION IS OUT OF WORK FOR MORE THAN A YEAR ECONOMISTS TEND TO SUSPECT GOVERNMENT THE REASON IS SIMPLE THOSE UNEMPLOYED PEOPLE WHO ARE JUST CASUALLY LOOKING OR WHO INSIST ON NOTHING LESS THAN THE IDEAL JOB WILL STAY UNEMPLOYED LONGTERM ONLY IF THEY ARE INDEPENDENTLY WEALTHY OR IF THE GOVERNMENT SUBSIDIZES THEIR UNEMPLOYMENT THOSE WHO BADLY WANT TO WORK WILL TYPICALLY FIND IT IN MUCH LESS THAN A YEAR IF THE GOVERNMENT DOES NOT PREVENT THEM FROM FINDING IT SO THE CULPRITS TO LOOK FOR TO EXPLAIN HIGH LONGTERM UNEMPLOYMENT ARE GOVERNMENT SUBSIDIES THAT DISCOURAGE PEOPLE FROM FINDING JOBS AND GOVERNMENT REGULATIONS THAT DISCOURAGE HIRING BOTH WERE ABUNDANT IN THE EC ECONOMIES IN THE 1980S AND MUCH LESS SO IN THE US WHAT IS THE MAIN SUBSIDY FOR NOT WORKING UNEMPLOYMENT INSURANCE THE RATIO OF UNEMPLOYMENT BENEFITS TO PREVIOUS PAY IS TYPICALLY HIGHER IN THE EC COUNTRIES THAN IN THE US IN 1988 A SINGLE 40YEAROLD PREVIOUSLY EMPLOYED AT THE AVERAGE PRODUCTION WORKER'S WAGE WOULD GET BENEFITS EQUAL TO 59 OF PREVIOUS EARNINGS IN FRANCE 58 IN GERMANY AND 70 IN THE NETHERLANDS COMPARE THIS WITH 50 FOR US WORKERS UNEMPLOYMENT BENEFITS IN THE EC COUNTRIES ALSO LAST MUCH LONGER IN BRITAIN FOR EXAMPLE THE MAXIMUM DURATION OF BENEFITS IS ONE YEAR IN FRANCE AN UNEMPLOYED PERSON CAN COLLECT BENEFITS FOR 2 1/2 YEARS IN THE NETHERLANDS IT IS THREE YEARS UNTIL RECENTLY IN THE US BY COMPARISON THE MAXIMUM TIME TO COLLECT HAS BEEN ONLY SIX MONTHS THE GREATER BENEFITS AND LONGER DURATION OF BENEFITS IN THE MAJOR EC COUNTRIES ARE A PRIMARY CAUSE OF HIGH LONGTERM UNEMPLOYMENT BUT EUROPEAN GOVERNMENTS ARE NOT CONTENT TO SUBSIDIZE PEOPLE NOT TO WORK THEY ALSO ACTIVELY AND INTRUSIVELY DISCOURAGE COMPANIES FROM HIRING HOW THE ITALIAN GOVERNMENT MAKES COMPANIES RANK JOB CANDIDATES BY CRITERIA CHOSEN BY THE GOVERNMENT THERE ARE TWO MAIN CRITERIA THE LARGER THE CANDIDATE'S FAMILY AND THE LONGER THE PERSON HAS BEEN UNEMPLOYED THE HIGHER IS HIS RANKING NOTE THAT THE SECOND CRITERION IS LIKELY TO BE NEGATIVELY CORRELATED WITH THE PERSON'S PRODUCTIVITY THE GOVERNMENTS OF AUSTRIA DENMARK FINLAND GREECE ITALY SPAIN AND SWEDEN GIVE THEIR OWN EMPLOYMENT AGENCIES A MONOPOLY FORPROFIT EMPLOYMENT AGENCIES ARE ILLEGAL THE GOVERNMENTS OF BELGIUM FRANCE GERMANY AND NORWAY PERMIT FORPROFIT EMPLOYMENT AGENCIES BUT ONLY FOR FILLING TEMPORARY JOBS SOME EUROPEAN GOVERNMENTS EVEN REGULATE THE ADVERTISING OF JOB VACANCIES IN SPAIN ACCORDING TO THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT IT APPEARS TO BE ILLEGAL TO ADVERTISE A JOB AT ALL UNTIL A CONTRACT OF EMPLOYMENT FOR IT HAS BEEN SUBMITTED TO AND APPROVED BY THE GOVERNMENT PLACEMENT SERVICE ALL SUCH RESTRICTIONS DISCOURAGE HIRING NOR CAN A TYPICAL EMPLOYER IN EUROPE JUST DECIDE TO FIRE SOMEONE IN GERMANY AN EMPLOYER MUST GIVE AN EMPLOYEE TWO TO THREE MONTHS' NOTICE AND MUST CONSULT THE GOVERNMENT'S WORKS COUNCIL IF THE COUNCIL VETOES THE DISMISSAL THE EMPLOYER MUST APPEAL TO THE LABOR COURT ALL THE WHILE KEEPING THE EMPLOYEE ON THE PAYROLL THE PENALTY FOR AN UNFAIR DISMISSAL ONE MONTH OF PAY FOR EVERY YEAR OF SERVICE IN ITALY THE RESTRICTIONS ON FIRING ARE EVEN MORE STRINGENT THE EMPLOYER MUST SUPPLY PROOF OF THE REASON FOR DISMISSAL AND THE REASON MUST BE JUST THE EMPLOYEE MAY DEMAND A MEETING WITH THE TRADE UNION AND THE EMPLOYER A HEARING AND AN APPEAL TO THE COURTS THE COMPENSATION FOR UNFAIR DISMISSAL IS NOT LESS THAN FIVE MONTHS' PAY AS ONE EXPERT ON SUCH LAWS SUMMED UP THE ITALIAN LAW DISMISSAL IS CONSIDERED PRACTICALLY IMPOSSIBLE EXCEPT FOR CRIMINAL ACTS BUT SHOULDN'T RESTRICTIONS ON FIRING REDUCE UNEMPLOYMENT NO BECAUSE EMPLOYERS KNOW THAT SUCH RESTRICTIONS MAKE JOBS SEMIPERMANENT THEY ARE LESS LIKELY TO HIRE IN THE FIRST PLACE THE DATA CONFIRM THIS SEMIPERMANENCE ONLY 19 OF EMPLOYEES IN THE EC IN THE LATE 1970S HELD THEIR JOBS FOR LESS THAN TWO YEARS VS 39 FOR THE US IN 1983 UNFORTUNATELY US GOVERNMENT OFFICIALS POLITICIANS AND JUDGES ARE INCREASINGLY IMITATING THE FAILED POLICIES OF EUROPE IN THE PAST FIVE YEARS ALL THREE US PRESIDENTS HAVE HELPED IMPLEMENT POLICIES THAT REDUCE THE DYNAMISM OF THE US LABOR MARKET IN 1988 PRESIDENT REAGAN REFUSED TO VETO A LAW THAT REQUIRES COMPANIES EMPLOYING MORE THAN 100 PEOPLE TO GIVE 60 DAYS' NOTICE OF ANY CLOSURE OR LAYOFF INVOLVING 50 OR MORE FULLTIME EMPLOYEES THOUGH THE LAW IS FULL OF EXEMPTIONS AND HAS NOT THEREFORE HAD MUCH EFFECT IT IS STILL A SIGNIFICANT STEP IN THE WRONG DIRECTION AS IN EUROPE THE LONGRUN EFFECT WILL BE TO MAKE EMPLOYERS LESS LIKELY TO HIRE PRESIDENT BUSH DID HIS SHARE TOO BY SIGNING THE AMERICANS WITH DISABILITIES ACT IN 1990 THE ADA BANS DISCRIMINATION AGAINST DISABLED PEOPLE AND DEFINES DISABILITY AS A MENTAL OR PHYSICAL IMPAIRMENT THAT SUBSTANTIALLY LIMITS ONE OR MORE MAJOR LIFE ACTIVITIES WHICH INCLUDE WALKING TALKING AND BREATHING THE LAW EXPLICITLY COUNTS AS DISABLED THOSE WITH A HISTORY OF ALCOHOL AND DRUG ADDICTION THE ADA WILL HURT EMPLOYMENT IN THREE WAYS FIRST EMPLOYERS WILL CAREFULLY TRY TO FIGURE OUT WHETHER A JOB CANDIDATE HAS DISABILITIES THAT WILL COST THE EMPLOYER ONCE THE CANDIDATE IS HIRED AND SECOND THE LAW WILL ENCOURAGE FIRMS WITH 15 EMPLOYEES OR SLIGHTLY MORE TO CUT EMPLOYMENT DOWN TO 14 THAT WAY THEY WILL BE EXEMPT FROM THE LAW AFTER LESS THAN A YEAR IN OFFICE PRESIDENT CLINTON HAS ALREADY DONE MUCH TO DISCOURAGE EMPLOYMENT IN MARCH HE AND CONGRESS PASSED A LAW THAT EXTENDS UNEMPLOYMENT BENEFITS BY 20 WEEKS IN STATES WITH LOW UNEMPLOYMENT RATES AND BY 26 WEEKS IN HIGHUNEMPLOYMENT STATES MR CLINTON'S OWN CHIEF LABOR ECONOMIST LAWRENCE KATZ ALONG WITH HIS COAUTHOR NORTHWESTERN UNIVERSITY'S BRUCE MEYER SHOWED THAT AN EARLIER 13WEEK EXTENSION INCREASED THE DURATION OF UNEMPLOYMENT SUBSTANTIALLY AND MR MEYER ESTIMATED IN APRIL THAT SUCH A 13WEEK EXTENSION IF IMPLEMENTED TODAY WOULD CAUSE A 04PERCENTAGEPOINT INCREASE IN THE UNEMPLOYMENT RATE MR CLINTON'S 20 TO 26WEEK EXTENSION WILL INCREASE UNEMPLOYMENT EVEN MORE AND IF LABOR SECRETARY ROBERT REICH GETS HIS WAY AND THE MINIMUM WAGE IS RAISED THE NEGATIVE EFFECTS WILL BE FELT BY THOSE THE ADMINISTRATION PURPORTS TO HELPUNSKILLED AND INEXPERIENCED WORKERS COURTS ARE ALSO PLACING MANY BURDENS ON EMPLOYMENT BEFORE THE 1970S US COURTS SUBSCRIBED TO THE AT WILL DOCTRINE FOR EMPLOYERS EMPLOYERS WERE FREE TO TERMINATE EMPLOYEES AT WILL JUST AS EMPLOYEES ARE FREE TO QUIT AT WILL BUT SINCE THE 1970S US COURTS HAVE CHIPPED AWAY AT THIS EQUAL TREATMENT OF EMPLOYERS AND EMPLOYEES IN APRIL FOR EXAMPLE THE CALIFORNIA COURT OF APPEAL UPHELD A 51 MILLION DAMAGE AWARD IN HUNIO V TISHMAN CONSTRUCTION CO MR HUNIO A CONSTRUCTION MANAGER HAD WALKED OFF A MAJOR PROJECT BECAUSE HE SAID A CUSTOMER WAS ABRASIVE AND ABUSIVE WHEN HE CAME BACK HE CLAIMED THE COMPANY GAVE HIM ONLY MINOR PROJECTS LEFT HIM IDLE MUCH OF THE TIME AND DENIED HIM A RAISE AND A CHRISTMAS BONUS THE JURY AWARDED HIM 2 MILLION FOR EMOTIONAL DISTRESS AND 1 MILLION IN PUNITIVE DAMAGES SUCH DECISIONS GIVE EMPLOYERS PAUSE ABOUT HIRING IN THE FIRST PLACE THE 1980S SHOWED US THAT AVOIDING EUROPEANSTYLE REGULATION CREATES JOBS YET WE ARE MOVING IN THE DIRECTION OF EUROPE WE MUST REVERSE COURSE NOW BEFORE A NEW TERM IS COINED AMERISCLEROSIS MR HENDERSON IS A RESEARCH FELLOW AT STANFORD'S HOOVER INSTITUTION AND EDITOR OF THE FORTUNE ENCYCLOPEDIA OF ECONOMICS THIS ARTICLE IS ADAPTED FROM THE FALL ISSUE OF THE PUBLIC INTEREST 9310140133 931014 GOLDMAN MITSUI MARINE VENTURE NEW YORK GOLDMAN SACHS & CO SAID ONE OF ITS AFFILIATES ALONG WITH MITSUI MARINE & FIRE INSURANCE CO FORMED A JOINT VENTURE THAT WILL PROVIDE A FULL RANGE OF BUSINESS IN THE DERIVATIVES MARKETS THE VENTURE GOLDMAN SACHS MITSUI MARINE DERIVATIVES PRODUCTS LP WILL BE BASED IN NEW YORK AND HAVE AN INITIAL CAPITALIZATION OF 75 MILLION OWNERSHIP WILL BE SPLIT EQUALLY BETWEEN THE TWO COMPANIES 9310140132 931014 ECONOMY WHITE HOUSE TO OFFER MORE SPENDING CUTS CONGRESS TO BE ASKED TO TRIM FAR LESS THAN 10 BILLION OF 500 BILLION BUDGETED BY DAVID WESSEL AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE TRYING TO FULFILL ITS SUMMER PROMISE TO FIND MORE SPENDING CUTS IS PLANNING TO ASK CONGRESS TO RESCIND SUBSTANTIALLY LESS THAN 10 BILLION OF THE MORE THAN 500 BILLION IN CONGRESSIONAL APPROPRIATIONS FOR THE CURRENT FISCAL YEAR ADMINISTRATION OFFICIALS SAID THE WHITE HOUSE PLANS TO PACKAGE THE PROPOSED CUTS OR RESCISSIONS WITH LEGISLATION IMPLEMENTING SOME OF THE RECOMMENDATIONS MADE BY VICE PRESIDENT AL GORE'S NATIONAL PERFORMANCE REVIEW THOSE PROPOSALS WHICH INCLUDE CHANGES IN FEDERAL PROCUREMENT PRACTICES COULD SAVE BETWEEN 10 BILLION AND 15 BILLION IN THE NEXT FIVE YEARS BY ADMINISTRATION ESTIMATES THE PACKAGE IS TENTATIVELY SET TO BE DELIVERED TO CONGRESS OCT 25 IT IS GOING TO BE A PACKAGE THAT FOCUSES ON NATIONAL PERFORMANCE REVIEW SAVINGS WITH PROCUREMENT AS AN IMPORTANT ELEMENT BUT WITH A NUMBER OF OTHER IMPORTANT SAVINGS AS WELL SAID BARRY TOIV A SPOKESMAN FOR WHITE HOUSE BUDGET DIRECTOR LEON PANETTA THERE WILL BE RESCISSIONS TOO IT ISN'T CLEAR THAT ANY SAVINGS REALIZED FROM IMPLEMENTING THE GORE REPORT WILL REDUCE FEDERAL SPENDING BEYOND THE LEVELS PROJECTED IN THE NEW DEFICITREDUCTION LAW THE WHITE HOUSE PROBABLY WILL NEED THE SAVINGS TO MEET CEILINGS ON SPENDING SET IN THAT LAW AND TO HELP PAY FOR INCREASED SPENDING ON PRESIDENT CLINTON'S INVESTMENT AGENDA THE LAW LIMITS THE INCREASE IN OUTLAYS FROM CONGRESSIONAL APPROPRIATIONS EVERYTHING FROM BUYING BATTLESHIPS TO PAYING PARK RANGERS IN FISCAL 1995 TO 03 SOME REPUBLICANS HAVE PROPOSED LOWERING SPENDING CEILINGS TO MAKE SURE THE SAVINGS MR GORE IDENTIFIED GO TO REDUCE THE DEFICIT THE WHITE HOUSE IS LIKELY TO RESIST SUCH SUGGESTIONS ONCE THE WHITE HOUSE PROPOSAL GETS TO CONGRESS A GROUP OF DEMOCRATS AND REPUBLICANS IN THE HOUSE IS PLANNING TO PROPOSE DEEPER SPENDING CUTS ACCORDING TO ONE OF THEIR LEADERS REP TIMOTHY PENNY D MINN SEN ROBERT KERREY WHO PRESSED FOR A NEW ROUND OF CUTS IN RETURN FOR SUPPORTING THE ADMINISTRATION'S DEFICITREDUCTION PACKAGE THIS SUMMER SAID HE'S NOT AT ALL PLEASED WITH THE ADMINISTRATION'S INTENTIONS WORKING WITH A SMALL BIPARTISAN GROUP OF CENTRIST COLLEAGUES THE NEBRASKA DEMOCRAT MAY SEEK TO REVIVE PREVIOUSLY DEFEATED PROPOSALS TO CAP SPENDING ON ENTITLEMENT PROGRAMS SUCH AS MEDICARE BUT THE ADMINISTRATION WANTS TO DEFER THAT FIGHT UNTIL ITS HEALTHCARE INITIATIVE COMES UP 9310140131 931014 INTERNATIONAL DAEWOO PLANS JOINT VENTURE SEOUL SOUTH KOREA DAEWOO HEAVY INDUSTRIES CO SAID IT EXCHANGED A MEMORANDUM OF UNDERSTANDING WITH AVIATION INDUSTRIES OF CHINA TO SET UP A JOINT VENTURE FOR MAKING PASSENGER AIRCRAFT THE SOUTH KOREAN COMPANY ALSO SAID THAT HINDUSTAN AIRLINES OF INDIA AND SINGAPORE AIRLINES OF SINGAPORE HAVE INITIALLY AGREED TO TAKE PART IN THE ESTABLISHMENT OF THE JOINT VENTURE ALONG WITH CHINA THE VENTURE WILL BE CALLED ASIAN AIRBUS ANOTHER SOUTH KOREAN COMPANY KOREAN AIR WILL ALSO PARTICIPATE IN THE JOINT VENTURE A DAEWOO OFFICIAL SAID 9310140130 931014 INTERNATIONAL CADBURY BID FOR A&W LONDON CADBURY SCHWEPPES PLC SAID ITS BID FOR A&W BRANDS INC HAS BEEN SUCCESSFUL WITH ABOUT 96 OF THE OUTSTANDING SHARES OF THE US COMPANY BEING TENDERED WHEN THE OFFER EXPIRED TUESDAY CADBURY LAUNCHED THE 334 MILLION BID FOR A&W ON SEPT 9 THE CONFECTIONARY AND DRINK MAKER SAID IT EXPECTS TO COMPLETE THE MERGER OF A&W BRANDS WITH ONE OF ITS NORTH AMERICAN SUBSIDIARIES THIS WEEK 9310140129 931014 INTERNATIONAL CHINA MAY BE SOFTENING AUSTERITY PLAN INFLATION LOOMS AS STATE FIRMS ARGUE FOR EASIER CREDIT BY JULIA LEUNG AND KATHY CHEN STAFF REPORTERS OF THE WALL STREET JOURNAL HONG KONG BEIJING APPEARS TO BE RELAXING ITS CAMPAIGN TO COOL CHINA'S RAMPAGING ECONOMY ALTHOUGH GOVERNMENT OFFICIALS ARE SENDING OUT MIXED SIGNALS SEVERAL DEVELOPMENTS POINT TO A SLIGHT RELAXATION OF THE 16POINT AUSTERITY PROGRAM ANNOUNCED IN LATE JUNE IN AN ATTEMPT TO REDUCE INFLATION AND STAMP OUT SPECULATION IN PROPERTY AND SHARES IN RECENT WEEKS RESTRICTIONS ON THE GRANTING OF CREDITS HAVE BEEN EASED SLIGHTLY OFFICIALS SAY AND ENFORCEMENT OF OTHER PARTS OF THE PROGRAM HAS BECOME MORE FLEXIBLE THIS SOFTER APPROACH APPEARS PARTLY AIMED AT EASING THE PAIN FOR BIG STATEOWNED MANUFACTURERS MANY OF WHICH HAVE HAD TO SLASH OR EVEN SUSPEND PRODUCTION FOR LACK OF SUFFICIENT CREDIT THE NEW APPROACH MAY ALSO BE DESIGNED TO REDUCE TENSION BETWEEN BEIJING AND INDEPENDENTMINDED OFFICIALS IN THE PROVINCES WHO HAVE HAD TO PUT SOME PROJECTS ON HOLD SINCE THE AUSTERITY PROGRAM WAS ANNOUNCED VICE PREMIER ZHU RONGJI CHINA'S TOP ECONOMIC POLICY OFFICIAL HAS PROBABLY BEEN TOLD TO GO SLOW WITH THE AUSTERITY DRIVE SAYS HUAN GUOCANG AN ECONOMIST AT A HONG KONG UNIT OF JP MORGAN BUT CONFLICTING SIGNALS MAKE IT HARD TO PREDICT THE DIRECTION OF ECONOMIC POLICY THERE APPEARS TO BE NO CONSENSUS AMONG TOP CHINESE LEADERS ON WHETHER TO GO ON SLOWING THE ECONOMY OR RELAX CREDIT AGAIN SAYS A CHINESE ECONOMIST AT A THINK TANK THAT ADVISES THE STATE COUNCIL OR CABINET THE POLITICAL WIND IS BLOWING LEFT ONE DAY AND RIGHT ANOTHER INDEED ON TUESDAY THE OFFICIAL CHINA NEWS AGENCY WARNED AGAINST INFLATION IF BEIJING RELAXES ITS GRIP ON CREDIT IN A HURRY AS A RESPONSE TO HOWLS OF PAIN FROM THE PROVINCES AND ENTERPRISES INFLATION WILL BE REIGNITED AND THE ECONOMY THROWN INTO CHAOS AGAIN THE AGENCY QUOTED CHINESE ECONOMISTS AS SAYING SO FAR THE CREDIT SQUEEZE HASN'T SUCCEEDED IN BRINGING DOWN INFLATION WHICH IS RUNNING AT MORE THAN 22 ANNUALLY IN MAJOR CITIES ALTHOUGH PROPERTY PRICES HAVE FALLEN 20 TO 30 SINCE THE AUSTERITY PROGRAM BEGAN IN SOME COASTAL CITIES WHERE REALESTATE SPECULATION HAD BEEN INTENSE BUSINESSMEN AND OFFICIALS EAGER FOR UNRESTRAINED GROWTH TOOK HEART TWO WEEKS AGO WHEN CHINESE COMMUNIST PARTY CHIEF JIANG ZEMIN SPOKE AT AN ECONOMIC SUMMIT IN CANTON WITH LEADERS FROM 10 PROVINCES IN CHINA'S SOUTH AND SOUTHWEST MR JIANG URGED SUSTAINED RAPID AND HEALTHY ECONOMIC GROWTH EARLIER THIS WEEK THE OFFICIAL CHINESE MEDIA REPORTED THAT VICE PREMIER ZOU JIAHUA REPEATED MR JIANG'S WORDS BEFORE SHANGHAI INDUSTRIALISTS THESE REMARKS WERE IN CONTRAST TO VICE PREMIER ZHU'S GRIM WARNINGS TWO MONTHS AGO THAT THOSE WHO DEFIED HIS EFFORTS TO CONTROL THE ECONOMY WOULD HAVE THEIR HEADS CHOPPED OFF IN THE PAST COUPLE OF WEEKS MR ZHU HAS KEPT A LOW PROFILE ANY WAVERING FROM HIS TOUGH STAND IS LIKELY TO ENCOURAGE REBELLIOUS LOCAL OFFICIALS TO GO BACK TO THEIR FREEWHEELING WAYS EVEN BEFORE MR JIANG'S REMARKS BANKS IN FUJIAN PROVINCE BEGAN TO RELAX CREDIT SLIGHTLY LAST MONTH IN ADDITION FIVE FUJIAN COMPANIES ARE PREPARING TO GO AHEAD WITH PUBLIC SHARE OFFERINGS THAT HAD BEEN DELAYED BY THE AUSTERITY DRIVE SOME GOVERNMENT AGENCIES AND STATE ENTERPRISES MEANWHILE ARE CIRCUMVENTING SPENDING RESTRICTIONS TO BUY NEW CARS A GOVERNMENT OFFICIAL SAYS MR JIANG'S SPEECH MEANS THAT WE CAN LOOSEN UP A LITTLE BIT MORE THE OFFICIAL SAYS SOME THINGS THAT WERE STOPPED BEFORE CAN NOW BE STARTED AGAIN SPIRITS ARE RISING IN HUNAN PROVINCE TOO BUSINESSMEN THERE SAY SOME STALLED PROJECTS MIGHT MOVE AHEAD AGAIN THREE MONTHS AGO MR ZHU BERATED SENIOR HUNAN OFFICIALS FOR ALLOWING PROVINCIAL ENTERPRISES TO CHANNEL SOME 20 BILLION YUAN 35 BILLION INTO PROPERTY SPECULATION IN COASTAL REGIONS HE ALSO DISMISSED THREE SENIOR BANKING OFFICIALS BLAMED FOR RECKLESS REALESTATE LENDING HIS CRACKDOWN PUT MANY INVESTMENT PROJECTS IN HUNAN ON HOLD NOW HOWEVER A FOREIGN BUSINESSMAN INVOLVED IN A MAJOR PROPERTY DEVELOPMENT PROJECT IN CHANGSHA HUNAN'S CAPITAL SAYS HE AND HIS CHINESE PARTNERS ARE LOOKING FOR WAYS TO INJECT MORE MONEY INTO THE PROJECT WHICH WAS PRACTICALLY KILLED TWO MONTHS AGO HE ADDS THAT HIS PARTNERS AREN'T AS GLOOMY AS THE LAST TIME I TALKED TO THEM AT THE END OF AUGUST THEY DON'T LOOK UPON THE AUSTERITY PROGRAM AS DOOMSDAY IF PROPERTY DEVELOPERS ARE ENCOURAGED HEAVY INDUSTRY IS STILL GROANING SALES OF STEEL CEMENT AND OTHER INDUSTRIAL GOODS ARE PLUNGING THE XINHUA NEWS AGENCY REPORTED RECENTLY THAT VEHICLE SALES DECLINED 10 IN AUGUST THE THIRD MONTHLY FALL IN A ROW ANY RESULTING SQUEEZE ON THE INCOMES OF URBAN WORKERS COULD CREATE THE DANGER OF UNREST PRESSURE FROM THE STATE SECTOR FOR RELAXATION IS TREMENDOUS SAYS TSANG SHUKI A SENIOR ECONOMIC LECTURER AT HONG KONG BAPTIST COLLEGE VICE PREMIER ZHU HAS STAKED HIS POLITICAL REPUTATION ON HIS AUSTERITY DRIVE IF BEIJING DECIDES AUSTERITY IS TOO PAINFUL HOWEVER ONE WAY FOR MR ZHU TO SAVE FACE WOULD BE TO DECLARE THE PROGRAM A SUCCESS AND MOVE ON 9310140128 931014 BUSINESS BRIEF LEVI STRAUSS ASSOCIATES INC THIRDQUARTER NET INCOME JUMPED TO 1277 MILLION LEVI STRAUSS ASSOCIATES INC REPORTED THIRDQUARTER NET INCOME OF 1277 MILLION COMPARED WITH 76 MILLION A YEAR EARLIER IN THE PREVIOUS YEAR'S QUARTER THE COMPANY HAD A PRETAX CHARGE OF 158 MILLION RELATED TO STOCK OPTIONS OPERATING PROFIT TOTALED 1212 MILLION LEVI DOESN'T PROVIDE PERSHARE PROFIT FIGURES THE PRIVATELY HELD SAN FRANCISCO APPAREL COMPANY SAID SALES ROSE ABOUT 5 TO A RECORD 157 BILLION FROM 15 BILLION A YEAR EARLIER IN THE FIRST NINE MONTHS NET ROSE 55 TO 3514 MILLION FROM 2265 MILLION AFTER THE 158 MILLION PRETAX STOCK OPTION CHARGE SALES ROSE 7 TO 43 BILLION 9310140127 931014 WHAT'S NEWS WORLDWIDE THE SECURITY COUNCIL VOTED TO REIMPOSE SANCTIONS AGAINST HAITI THE UN SANCTIONS WHICH INCLUDE AN ARMS AND OIL EMBARGO ARE TO TAKE EFFECT MONDAY NIGHT UNLESS HAITIAN AUTHORITIES STOP SABOTAGING A UN PLAN TO RESTORE DEMOCRACY MEANWHILE HAITIAN ARMY CHIEF CEDRAS SAID HE WAS PREPARED TO STEP DOWN AS CALLED FOR UNDER THE UN PLAN BUT HE SAID PARLIAMENT MUST FIRST PASS A GENERAL AMNESTY LAW AND INSISTED THAT ANY FOREIGN SOLDIERS SENT TO HAITI MUST LEAVE THEIR AUTOMATIC WEAPONS BEHIND THE CONDITIONS THAT CEDRAS SET FOR RETURNING POWER TO OUSTED PRESIDENT ARISTIDE WERE UNLIKELY TO BE ACCEPTED BY UN AUTHORITIES THE WHITE HOUSE PLANS TO ASK CONGRESS TO CUT LESS THAN 10 BILLION IN SPENDING FROM 500 BILLION IN CONGRESSIONAL APPROPRIATIONS FOR THE CURRENT FISCAL YEAR ADMINISTRATION OFFICIALS SAID SENATE LEADERS WORKED BEHIND THE SCENES TO CRAFT LEGISLATION BACKING CLINTON'S PLAN TO PULL US TROOPS OUT OF SOMALIA BY MARCH 31 MEANWHILE THE PRESIDENT SENT CONGRESS A REPORT SAYING AN IMMEDIATE US PULLOUT WOULD CAUSE THE UN OPERATION TO COLLAPSE GREECE'S NEW SOCIALIST PREMIER UNVEILED PLANS TO CANCEL MAJOR PRIVATIZATION PROJECTS STARTED BY THE PREVIOUS CONSERVATIVE ADMINISTRATION PAPANDREOU SAID HE WOULD OVERTURN LEGISLATION SELLING A 35 STAKE OF THE STATE TELEPHONE COMPANY AND PRIVATIZING THE TRANSPORT COMPANY GERMANY HAS INFURIATED THE CLINTON ADMINISTRATION BY OBSTRUCTING US EFFORTS TO ISOLATE IRAN OFFICIALS IN WASHINGTON SAID IN RECENT MONTHS GERMANY HAS BLOCKED INITIATIVES TO CURB WESTERN TRADE WITH IRAN CHINA RECRUITED UP TO 1000 SCIENTISTS FROM RUSSIA TO WORK ON NUCLEAR AND BALLISTIC MISSILE TECHNOLOGY ACCORDING TO US OFFICIALS MEANWHILE RUSSIA'S SYSTEM FOR KEEPING TRACK OF ITS WEAPONS SCIENTISTS HAS BROKEN DOWN THE SUPREME COURT RETURNED TO THE CONTROVERSY OVER SEXUAL HARASSMENT IN THE WORKPLACE FOR THE FIRST TIME IN SEVEN YEARS THE JUSTICES HEARD ARGUMENTS IN THE CASE OF A TENNESSEE WOMAN WHO SAID HER BOSS SEXUALLY HARASSED HER BY MAKING SEXUAL COMMENTS AND REQUESTING THAT SHE RETRIEVE COINS FROM HIS PANTS POCKET AUSTRALIAN PHYSICIANS GATHERED THE FIRST DIRECT SCIENTIFIC PROOF THAT USING SUNSCREENS PREVENTS SKIN CANCER THEIR REPORT BASED ON A STUDY OF 588 PEOPLE APPEARS TODAY IN THE NEW ENGLAND JOURNAL OF MEDICINE TISSUE DAMAGE COULD BE PREVENTED AFTER HEART ATTACKS AND STROKES BY ADMINISTERING AN EXPERIMENTAL DRUG THAT HAS NO APPARENT SIDE EFFECTS JAPANESE SCIENTISTS REPORTED CLINTON'S SCHOOL IMPROVEMENT PLAN WON OVERWHELMING APPROVAL IN A 307118 HOUSE VOTE THE 420 MILLION PLAN WHICH THE SENATE STILL MUST CONSIDER WOULD ESTABLISH VOLUNTARY NATIONAL TEACHING STANDARDS AN AMERICAN AND A CANADIAN SHARED THE NOBEL PRIZE IN CHEMISTRY FOR DISCOVERING HOW TO MASSPRODUCE DNA AND TO REPROGRAM THE GENETIC CODE TECHNIQUES WITH APPLICATIONS IN MEDICINE AND BASIC RESEARCH THE WINNERS WERE KARY B MULLIS OF SAN DIEGO AND MICHAEL SMITH OF THE UNIVERSITY OF BRITISH COLUMBIA IN VANCOUVER THE NOBEL PRIZE IN PHYSICS WAS AWARDED TO TWO AMERICANS RUSSELL A HULSE AND JOSEPH H TAYLOR JR BOTH OF PRINCETON UNIVERSITY THEY WERE HONORED FOR DISCOVERING AN UNUSUAL PAIR OF ORBITING NEUTRON STARS CALLED A BINARY PULSAR A HAMBURG JUDGE FREED A TENNIS FAN WHO STABBED TENNIS STAR MONICA SELES IN APRIL THE DEFENDANT GUENTER PARCHE AN EAST GERMAN WHO ATTACKED SELES OUT OF AN OBSESSIVE LOVE FOR HER RIVAL STEFFI GRAF RECEIVED A TWOYEAR SUSPENDED SENTENCE THE JUDGE SAID PARCHE'S CONFESSION AND MENTAL STATE PLAYED A ROLE IN HER DECISION TWO LEFTWING PARTIES PRESENTED WALDEMAR PAWLAK LEADER OF THE POLISH PEASANTS PARTY AS THEIR CANDIDATE FOR POLAND'S PRIME MINISTER MOVING THE NATION CLOSER TO ITS FIRST NONSOLIDARITY GOVERNMENT SINCE 1989 ISRAEL AND THE PLO BEGAN TALKS ON PALESTINIAN SELFRULE AND VOWED TO MEET A TIMETABLE SET IN A DECLARATION OF PRINCIPLES SIGNED A MONTH AGO THEY AGREED ON FIVE IMMEDIATE STEPS FOR IMPLEMENTING THEIR ACCORD 9310140126 931014 HOLLYWOOD PARK ENTERS VENTURE INGLEWOOD CALIF HOLLYWOOD PARK INC SAID IT ENTERED INTO A JOINT VENTURE TO DEVELOP A SHOPPING AND ENTERTAINMENT CENTER ON 28 ACRES ADJACENT TO ITS THOROUGHBRED RACE TRACK AND OTHER ATTRACTIONS HERE THE PARTNER IS QBM INVESTMENT CORP A COSTA MESA CALIF REALESTATE DEVELOPMENT CONCERN THE CONSTRUCTION COST OF THE PROJECT HOLLYWOOD PARK MARKETPLACE WILL BE 18 MILLION TO 20 MILLION ACCORDING TO A QBM ESTIMATE HOLLYWOOD PARK SAID ITS PARTNER WILL BE RESPONSIBLE FOR CONSTRUCTION AND FINANCING HOLLYWOOD PARK ISN'T PUTTING UP ANY CASH BUT ITS LAND WILL BE USED TO SECURE FINANCING A SPOKESMAN SAID AFTER THE PROJECT IS COMPLETED HOLLYWOOD PARK WILL RECEIVE A FLAT FEE FOR GROUND RENT PLUS HALF THE PROJECT'S PROFIT THE PROJECT IS EXPECTED TO BEGIN GENERATING CASH FLOW FOR THE COMPANY IN 1995 AND TO BE FULHOLLYWOOD PARK SAID 9310140125 931014 TECHNOLOGY CONNER PERIPHERALS PLANS TO LAY OFF 290 STREAMLINE OPERATIONS SAN JOSE CALIF CONNER PERIPHERALS INC BATTERED BY PRICE CUTTING IN THE COMPUTER DISK DRIVE BUSINESS SAID IT WILL LAY OFF 290 WORKERS AND ANNOUNCE FURTHER STEPS TO STREAMLINE THE COMPANY THE COMPANY SAID IT WILL HAVE ABOUT 9300 EMPLOYEES WORLDWIDE AFTER THE LAYOFFS DOWN FROM ABOUT 12000 IN JANUARY THE 290 EMPLOYEES TARGETED FOR DISMISSAL ARE ALL BASED IN THE US RUMORS HAVE SWEPT SILICON VALLEY IN RECENT WEEKS THAT CONNER IS ABOUT TO TAKE DRASTIC RESTRUCTURING STEPS THE COMPANY DIDN'T DISCLOSE WHAT ADDITIONAL STEPS IT MAY TAKE BUT SAID IT WILL ANNOUNCE THEM OCT 21 WHEN IT RELEASES THIRDQUARTER RESULTS CONNER ANNOUNCED TWO WEEKS AGO THAT IT WOULD SCALE DOWN OPERATIONS AND THAT IT EXPECTS A WIDER THIRDQUARTER NET LOSS THAN ANALYSTS ESTIMATED AT THE TIME ANALYSTS' WERE FORECASTING A LOSS OF AS MUCH AS 95 CENTS A SHARE IN THE 1992 THIRD QUARTER CONNER HAD NET INCOME OF 419 MILLION OR 79 CENTS A SHARE ON SALES OF 625 MILLION CONNER ONCE RECOGNIZED AS ONE OF THE FASTESTGROWING COMPANIES IN THE US MAY BE REAPING WHAT IT SOWED MANY ANALYSTS AND COMPETITORS SAY THE DISK DRIVE INDUSTRY HAS BEEN REELING FROM SEVERE PRICE CUTTING SINCE EARLY THIS YEAR MANY ANALYSTS AND DISK DRIVE EXECUTIVES SAY CONNER STARTED THE LATEST ROUND OF PRICE CUTTING AFTER CRANKING UP PRODUCTION UNDER THE DIRECTION OF DAVID T MITCHELL PRESIDENT AND CHIEF OPERATING OFFICER AND DISCOUNTING PRODUCTS STEEPLY CONNER DENIES THAT IT TRIGGERED THE LATEST PRICE WARS BUT MR MITCHELL HAS A REPUTATION FOR PURSUING MARKET SHARE THROUGH BRUTAL PRICE CUTTING THE ANNOUNCEMENT OF THE LAYOFFS CAME AFTER THE CLOSE OF TRADING ON THE NEW YORK STOCK EXCHANGE CONNER STOCK CLOSED AT 9875 A SHARE UP 50 CENTS 9310140124 931013 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN TAKING ADVANTAGE OF A SPECIAL INSTALLMENTPAYMENT OFFER MAY BE TRICKY MANY UPPERINCOME TAXPAYERS SHOULD ACCEPT A GENEROUS OFFER IN THE NEW TAX LAW IT ALLOWS THOSE FACING HIGHER 1993 TAXES BECAUSE OF THE NEW HIGHER RATES TO SPREAD OUT PAYMENT OF THE ADDED TAX IN THREE ANNUAL INSTALLMENTS THROUGH 1996 WITHOUT INTEREST BUT THE FIRST INSTALLMENT MUST BE PAID BY NEXT APRIL 15 REGARDLESS OF FILING EXTENSIONS AND FIGURING HOW MUCH TO PAY CAN BE SURPRISINGLY COMPLEX TO QUALIFY YOUR FIRST INSTALLMENT MUST BE AT LEAST 90 OF THE 1993 TAX MINUS TWOTHIRDS OF THE TAX ADDED BY THE NEW 36 AND 396 RATES AND NOT BY ANY OTHER CHANGE IN THE LAW ALSO ATTACH NEW FORM 8841 TO YOUR RETURN HERE IS AN IRS EXAMPLE SUPPOSE YOUR 1993 TAX IS 47600 UNDER THE OLD LAW AND 50000 UNDER THE NEW LAW TO QUALIFY FOR INSTALLMENTS YOU MUST HAVE PAID AT LEAST 43400 90 OF 50000 LESS TWOTHIRDS OF 1993'S ADDED TAX BY APRIL 15 INCLUDING WITHHOLDING AND ESTIMATED TAXES IF YOU PAY LESS YOU WILL NOT QUALIFY IF YOU PAY MORE YOU DO QUALIFY FOR THE OFFER AND IF YOUR PAYMENTS BY APRIL 15 TOTAL MORE THAN THE ACTUAL TAX YOU OWE FOR 1993 LESS TWO INSTALLMENTS 48400 IN THIS EXAMPLE YOU CAN GET A REFUND DON'T BET ON GAMBLING REVENUES TO ELIMINATE STATE BUDGET WOES CASINO MANIA IS SWEEPING THE COUNTRY SAYS A REPORT BY STEVEN D GOLD OF THE CENTER FOR THE STUDY OF THE STATES IN ALBANY NY MANY STATES NOW AUTHORIZE CASINOS AND ALL SIGNS POINT TO A RAPID PROLIFERATION OF GAMBLING PALACES FROM COAST TO COAST BUT WHILE GAMBLING REVENUES CAN EASE STATE BUDGET PRESSURES GOLD SAYS HOPES FOR HUGE REVENUE INCREASES ARE WILDLY INFLATED LOBBYING RULES IN THE NEW TAX LAW CREATE WIDESPREAD CONFUSION STARTING NEXT YEAR COMPANIES WILL NO LONGER BE ABLE TO DEDUCT MANY LOBBYING EXPENSES SUCH AS THE COST OF INFLUENCING CONGRESS ON PROPOSED LEGISLATION THE NEW RULES RAISE A LOT OF THORNY QUESTIONS SAYS DONALD ALEXANDER A LAWYER AT THE AKIN GUMP FIRM AND A FORMER IRS COMMISSIONER FOR EXAMPLE TAX EXPERTS ASK WHAT EXACTLY IS LOBBYING AND HOW DOES IT DIFFER FROM DEDUCTIBLE MONITORING OR RESEARCH EXPENSES CAN A COMPANY PAY ITS 1994 LOBBYING EXPENSES NOW AND CLAIM A DEDUCTION FOR 1993 A FEW TAX ADVISERS THINK SO BUT MANY OTHERS STRONGLY DISAGREE THERE SURE IS A LACK OF CLARITY ON THIS SAYS PHILLIP MANN OF THE LAW FIRM MILLER & CHEVALIER RECORDKEEPING COULD BE AN ADMINISTRATIVE NIGHTMARE UNLESS TREASURY ISSUES PRACTICAL GUIDANCE SOON SAYS MARK MCCONAGHY OF PRICE WATERHOUSE THE TREASURY SAYS THESE AND OTHER QUESTIONS ARE UNDER STUDY LAWYERS MAY BE WINNERS SOME SAY THEY MAY REACT BY CUTTING THEIR LOBBYING FEES AND RAISING DEDUCTIBLE LEGAL FEES MUSEUMS UNIVERSITIES AND CHARITIES RECEIVE A TRICKLE OF NEW GIFTS OF STOCKS BONDS AND ART THANKS PARTLY TO THE NEW LAW IT ENCOURAGES GIFTS OF PROPERTY WHOSE MARKET VALUE HAS INCREASED SAYS MORTIMER CAPLIN OF CAPLIN & DRYSDALE MORE DEADBEATS SETTLE THEIR TAX DEBTS WITH THE IRS IN THE 11 MONTHS ENDED AUG 31 THE IRS ACCEPTED A RECORD 15778 TAXPAYER OFFERS TO COMPROMISE FOR PARTIAL PAYMENT THAT WAS UP FROM 4356 IN THE YEAR ENDED SEPT 30 1992 AND 1995 IN FISCAL 1991 CLUB DUES WILL NOT BE DEDUCTIBLE NEXT YEAR BECAUSE OF THE NEW LAW SOME ACCOUNTANTS URGE ELIGIBLE CLIENTS TO PAY 1994 DUES NOW AND DEDUCT THEM FOR 1993 BUT OTHERS DISAGREE ALL TREASURY OFFICIALS WILL SAY IS THEY ARE STUDYING THE PROBLEM CALIFORNIA HAILS A CLINTON MOVE THAT COULD HELP SAVE THE STATE A FORTUNE CALIFORNIANS SMELL VICTORY IN THEIR BATTLE WITH BARCLAYS BANK OVER THE STATE'S AGGRESSIVE APPROACH TO TAXING MULTINATIONAL COMPANIES BARCLAYS CHALLENGED THE WORLDWIDE UNITARY TAX APPROACH IN WHICH A STATE CONSIDERS A COMPANY'S GLOBAL RESULTS NOT ONLY ITS REPORTED INSTATE EARNINGS IN FIGURING ITS STATE TAX BILL THE ADMINISTRATION RECENTLY ASKED THE SUPREME COURT TO REFUSE TO HEAR BARCLAYS' APPEAL OF A CALIFORNIA COURT RULING CALIFORNIA RECENTLY CHANGED ITS LAW ALLOWING THE US TO ARGUE THE CASE IS MOOT AND ENABLING CLINTON TO FULFILL A CAMPAIGN PLEDGE CALIFORNIA HAS 4 BILLION AT STAKE IN THIS AND A RELATED CASE SAYS BRAD SHERMAN A STATE TAX OFFICIAL HE IS CONFIDENT THE SUPREME COURT WILL REJECT BARCLAYS' APPEAL BUT SOME LAWYERS SAY THE COURT MIGHT ACCEPT THE CASE ANYWAY BECAUSE IT POSES MAJOR CONSTITUTIONAL ISSUES THIS CASE ISN'T OVER SAYS JOANNE GARVEY A LAWYER FOR BARCLAYS WE FEEL PRETTY GOOD ABOUT IT BRIEFS MORE CHANGES IN THE CLINTON ERA THE TREASURY'S OFFICE OF TAX POLICY ROUTS THE CONGRESSIONAL JOINT COMMITTEE ON TAXATION 2410 IN THEIR ANNUAL SOFTBALL GAME AVENGING LAST YEAR'S DEFEAT PROCRASTINATORS' ALERT TAXPAYERS WHO RECEIVED EXTENSIONS IN UGUST MUST FILE THEIR 1992 RETURNS BY FRIDAY 9310140123 931014 THREE BIG US CHAINS PLAN TO OPEN OUTLETS FOR FAST FOOD IN ISRAEL A WALL STREET JOURNAL NEWS ROUNDUP THREE BIG US FASTFOOD CHAINS ANNOUNCED PLANS TO OPEN OUTLETS IN ISRAEL MCDONALD'S CORP SAID ITS FIRST RESTAURANT IN THE COUNTRY WOULD OPEN TODAY IN TEL AVIV AS PART OF AN EXPANSION ELSEWHERE IN THE MIDDLE EAST BURGER KING CORP A UNIT OF GRAND METROPOLITAN PLC YESTERDAY SAID IT SIGNED A DEVELOPMENT AGREEMENT TO OPEN 51 STORES IN ISRAEL IN THE NEXT SIX YEARS BEGINNING WITH ONE IN TEL AVIV NEXT APRIL KFC CORP A UNIT OF PEPSICO INC YESTERDAY ALSO SAID ITS FIRST ISRAELI UNIT WILL OPEN OCT 24 IN TEL AVIV KFC ALREADY OPERATES RESTAURANTS IN 10 MIDEAST COUNTRIES 9310140122 931014 THE INTERACTIVE AGE THE ACQUISITION OF TCI AN UNFAZED AT&T CONSIDERS THE DEAL GOOD FOR BUSINESS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL THE COMBINATION OF BELL ATLANTIC AND TELECOMMUNICATIONS INC WILL RIVAL THE MARKET VALUE AND POWER OF ANOTHER MULTIMEDIA GIANT AMERICAN TELEPHONE & TELEGRAPH CO THE NEW BELL ATLANTIC WILL HAVE ENORMOUS ASSETS AND STRETCH ACROSS THE US AND TO NUMEROUS OVERSEAS MARKETS AND THE NEW COMPANY WILL POSSESS WIRELESS SERVICES THAT MAY SOMEDAY CHALLENGE AT&T AND ITS 126 BILLION ACQUISITION MCCAW CELLULAR COMMUNICATIONS INC BUT AT&T SEEMED UNFAZED BY THE BELL ATLANTICTCI ANNOUNCEMENT IT HAS BECOME VERY CLEAR IN RECENT WEEKS THAT MAJOR LINKAGES BETWEEN TELEPHONE AND CABLE COMPANIES WERE ONLY A MATTER OF TIME SAID AT&T CHAIRMAN ROBERT E ALLEN OUR FUTURE DOESN'T HINGE ON OUR OWNING EITHER A CABLE COMPANY OR AN ENTERTAINMENT COMPANY WE'LL CONTINUE TO BE A MAJOR SUPPLIER OF EQUIPMENT TECHNOLOGY AND NETWORK EXPERTISE TO ANY AND ALL COMPANIES IN FACT AT&T MAY BE WELLPOSITIONED TO BENEFIT GREATLY FROM THE PHONECABLE MARRIAGE WITHOUT HAVING TO PONY UP THE HUGE COSTS OF OWNING A CABLE BUSINESS AT&T HAS A METHODICAL PLAN FOR SUPPLYING THE CABLE AND ENTERTAINMENT INDUSTRIES WITH EVERYTHING FROM HIGHCAPACITY LONGDISTANCE TRANSMISSION LINES TO NETWORK GEAR THAT WILL TRANSFORM THE CABLE NETWORKS INTO INTERACTIVE SYSTEMS CAPABLE OF CARRYING ANY KIND OF DIGITAL SIGNAL AT&T'S VISION IS TO TIE CABLE CUSTOMERS INTO ONE NETWORK OF COMMON SYSTEMS AND TRANSMISSION SPECIFICATIONS THAT'S SIMILAR TO THE BELL SYSTEM SUCH A NETWORK PLAN WORKED OUT BY AT&T BELL LABORATORIES WOULD MAKE IT EASIER FOR CABLE CUSTOMERS TO CALL ONE ANOTHER PLAY GAMES OR SEND VIDEO MATERIAL ACROSS NETWORKS AT THE SAME TIME AT&T NETWORK SYSTEMS THE COMPANY'S GIANT EQUIPMENT ARM IS TRYING TO SELL EQUIPMENT AND SERVICES TO TCI AND OTHER CABLE OPERATORS ALREADY THE PRIMARY SUPPLIER OF NETWORK GEAR TO BELL ATLANTIC AT&T STANDS TO GAIN A HUGE CHUNK OF BUSINESS FROM THE FUTURE TCI NETWORK AT&T COULD SUPPLY NETWORK SWITCHES TRANSMISSION EQUIPMENT AND COMPUTER VIDEO SERVERS THAT WOULD DELIVER MOVIES GAMES AND OTHER PROGRAMMING TO HOMES IN TRANSMISSION SERVICES AT&T IS SETTING ITSELF UP TO BECOME A PARTNER WITH THE CABLE COMPANIES HANDLING SWITCHING AND LONGHAUL TRANSMISSION AS WELL AS VIDEOONDEMAND DELIVERY TO DO THIS AT&T WOULD HAVE CABLE COMPANIES TAP INTO ITS VAST LONGDISTANCE NETWORK LEAVING AT&T'S MASSIVE SWITCHES TO HANDLE INTERACTIVE SWITCHING FUNCTIONS AND AT&T'S MASSIVE COMPUTER VIDEO SERVERS WOULD STORE PROGRAMMING SUCH AS MOVIES AND OTHER INTERACTIVE SERVICES AND DELIVER IT ON DEMAND THIS DEAL WILL HELP AT&T WHICH HAS BEEN TRYING TO PROVIDE FACILITIES AND EQUIPMENT TO THE CABLE AND PHONE COMPANIES FOR VIDEO AND OTHER SERVICES NOTED ROBERT B MORRIS III ANALYST AT GOLDMAN SACHS & CO THE BENEFIT OF THESE NETWORK UPGRADES TO AT&T COULD BE HUGE THE COMPANY CURRENTLY PAYS LOCAL PHONE COMPANIES MORE THAN 15 BILLION A YEAR FOR COMPLETING CALLS ON THEIR LOCAL NETWORKS AN INTERACTIVE CABLE COMPANY COULD CARRY MANY OF THESE CALLS FINALLY BRINGING COMPETITION TO THE LOCAL TELEPHONE BUSINESS AND GIVING AT&T MUCH CHEAPER ACCESS COSTS NOTED ROBERT B MORRIS III TELECOMMUNICATIONS ANALYST AT GOLDMAN SACHS & CO THAT MAY MEAN A HUGE CUT IN AT&T'S MULTIBILLIONDOLLAR PAYMENTS TO MONOPOLIES EACH YEAR 9310140121 931014 BUSINESS BRIEF AMERICAN EXPRESS CO LEHMAN UNIT PLANS TO MOVE SOME STAFF TO NEW JERSEY LEHMAN BROTHERS INC THE INVESTMENT BANKING UNIT OF AMERICAN EXPRESS CO SAID IT IS MOVING 900 EMPLOYEES TO NEW JERSEY FROM NEW YORK CITY'S FINANCIAL DISTRICT IN MANHATTAN THE EMPLOYEES WHO WORK AS PROCESSORS IN THE COMPANY'S TRADINGSERVICES GROUP WILL MOVE TO OFFICE SPACE IN JERSEY CITY ACROSS THE HUDSON RIVER FROM NEW YORK THE MOVE STEMS FROM THE COMPANY'S DEPARTURE FROM A BUILDING THE COMPANY SOLD TO PRIMERICA CORP THIS YEAR LEHMAN BROTHERS SAID IT PLANS TO KEEP ITS HEADQUARTERS ALONG WITH 5000 EMPLOYEES IN NEW YORK CITY THE COMPANY HAS 9200 EMPLOYEES WORLDWIDE REAL ESTATE ANALYSTS FAMILIAR WITH LEHMAN BROTHERS' NEW RENTAL AGREEMENT SAID THE COMPANY WOULD GAIN SAVINGS FROM A LESS EXPENSIVE LEASE AND A LOWER SALES TAX AS WELL AS FROM CERTAIN NEW JERSEY GRANTS AS THE JERSEY CITY BUILDING IS IN A STATE ENTERPRISE ZONE 9310140120 931014 ECONOMY SELLING PACE OF VEHICLES IN EARLY OCTOBER REACHED HIGHEST LEVEL SINCE THE SUMMER BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE 1994 MODEL YEAR IS OFF TO A BRISK START AS THE SELLING PACE OF NORTH AMERICANBUILT VEHICLES IN EARLY OCTOBER REACHED ITS HIGHEST LEVEL SINCE THE SUMMER NORTH AMERICANBUILT VEHICLES SOLD AT A SEASONALLY ADJUSTED ANNUAL SELLING PACE OF 121 MILLION VEHICLES IN THE FIRST 10 DAYS OF OCTOBER THAT'S MUCH STRONGER THAN THE MEDIOCRE 112 MILLIONUNIT SELLING PACE FOR THE ENTIRE MONTH OF SEPTEMBER AND SUBSTANTIALLY BETTER THAN THE WEAK 108 MILLIONUNIT SELLING RATE IN THE YEAREARLIER PERIOD THE 1994 MODEL YEAR BEGAN OCT 1 SEPARATELY CAR SALES IN WESTERN EUROPE DECLINED 109 IN SEPTEMBER TO 843610 VEHICLES FROM A YEAR EARLIER BOTH GENERAL MOTORS CORP AND FORD MOTOR CO MADE SLIGHT GAINS IN MARKET SHARE HOWEVER GM SOLD ABOUT 11 FEWER CARS IN SEPTEMBER THAN A YEAR EARLIER AND FORD SALES DROPPED ABOUT 15 CHRYSLER CORP HAS ONLY A SMALL PRESENCE IN EUROPE BUT THAT MARKET IS CRITICAL TO GM AND FORD'S OVERALL PROFITABILITY IN THE US THE SALES PACE FOR NORTH AMERICANBUILT CARS HASN'T HIT THE 12 MILLION RATE SINCE MIDAUGUST INDUSTRY ANALYSTS ATTRIBUTE THE BRISK SELLING PACE TO ROBUST ENDOFMODELYEAR CLOSEOUT SALES AND STRONG INTEREST IN NEW MODELS AUTO MAKERS HAVE BEEN AGGRESSIVE IN CLEARING 1993 MODELS TO MAKE ROOM FOR THE NEW 1994 VEHICLES WITH FEW BARGAINPRICED 1993 MODELS AVAILABLE IT WAS FEARED THAT EARLY OCTOBER SALES MIGHT DECLINE SAID TOM WEBB CHIEF ECONOMIST OF THE NATIONAL AUTOMOBILE DEALERS ASSOCIATION BUT SHOWROOM TRAFFIC AND CLOSING RATES REMAINED STEADY FOLLOWING THE PATTERN OF THE PAST SEVERAL MONTHS OVERALL AMERICANS BOUGHT 245940 NORTH AMERICANBUILT CARS AND LIGHT TRUCKS IN THE OCT 110 PERIOD COMPARED WITH THE 254495 SOLD IN THE YEAREARLIER PERIOD ALTHOUGH THE SALES TOTAL DECLINED BECAUSE THERE WERE EIGHT SELLING DAYS THIS YEAR COMPARED WITH NINE LAST YEAR THE DAILY SELLING RATE OF VEHICLES ACTUALLY ROSE 87 IN THE LATEST PERIOD GM'S TOTAL VEHICLE SALES WHICH HAD SLIPPED FROM YEAREARLIER LEVELS IN PREVIOUS SELLING PERIODS REBOUNDED IN EARLY OCTOBER ITS TOTAL VEHICLE SALES CLIMBED 86 FROM A YEAR EARLIER LARGELY HELPED BY A 426 SURGE IN CHEVROLET SALES A 129 GAIN IN SATURN SALES AND A 75 INCREASE IN CHEVROLET TRUCK SALES FORD WHICH HAS BENEFITED FROM STRONG SALES THROUGHOUT THE YEAR SAID ITS TOTAL VEHICLE SALES EDGED UP 37 IN THE LATEST 10DAY PERIOD SALES OF FORD'S NORTH AMERICANBUILT CARS ROSE A MODEST 18 WHILE SALES OF ITS PICKUPS SPORT UTILITY VEHICLES AND LIGHT TRUCKS JUMPED 73 CHRYSLER'S TOTAL VEHICLE SALES SURGED 196 IN THE LATEST 10DAY PERIOD ACCORDING TO AN ESTIMATE FROM WARD'S AUTOMOTIVE REPORTS CHRYSLER DOESN'T REPORT 10DAY VEHICLE SALES AMONG THE JAPANESE AUTO MAKERS TOYOTA MOTOR CORP REPORTED A 294 DROP IN ITS TOTAL VEHICLE SALES LARGELY DRAGGED DOWN BY A 346 PLUNGE IN SALES OF ITS SPORT UTILITY VEHICLES 316 DROP IN PICKUP SALES AND A 308 DECLINE IN CAMRY SALES HONDA MOTOR CO POSTED A 56 INCREASE IN TOTAL VEHICLE SALES NISSAN MOTOR CO REPORTED AN 187 JUMP IN VEHICLE SALES AND MAZDA MOTOR CORP POSTED A 248 SURGE IN VEHICLE SALES 9310140119 931014 PEPPERAND SALT OF ECONOMIC LAG BONDS I NEVER HAD AND OPTIONS DRIVE ME MAD WHAT'S IN SALT AND PEPPER RETIREMENT IS WHEN ONE SLOWLY PROGRESSES FROM DOING PUSHUPS IN A GYM TO PUSHBACKS IN A RECLINER PENNY PINCHING SHELLOUT FALTER 9310140118 931014 THE INTERACTIVE AGE THE ACQUISITION OF TCI FOR YEARS BELL ATLANTIC HAS BEEN OBSESSED WITH BEING MORE THAN A PHONE COMPANY BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL BELL ATLANTIC CORP'S DRIVE INTO CABLE TELEVISION CAPS A 10YEAR CORPORATE OBSESSION TO DO MORE THAN JUST DELIVER CALLS TO A DUMB PHONE ON THE END OF A TWISTED COPPER WIRE EASILY THE MOST INNOVATIVE OF THE SEVEN REGIONAL BELL COMPANIES BELL ATLANTIC ALSO WANTS TO ENTERTAIN AND INFLUENCE HOW SHOWS AND OTHER INFORMATION SERVICES ARE DELIVERED TO CONSUMERS NATIONWIDE THE DRIVING FORCE BEHIND THIS EFFORT HAS BEEN CHAIRMAN RAYMOND SMITH A BELL SYSTEM VETERAN OF 34 YEARS AND BELL ATLANTIC'S CHAIRMAN SINCE 1989 AN AMATEUR PLAYWRIGHT AND CLASSICAL MUSIC BUFF WHO OFTEN SHEDS HIS BLAND BELLISSUE BLUE SUITS FOR FLASHIER DUDS AND LOUD TIES THE 55YEAROLD MR SMITH IS A RENAISSANCE MAN SAYS ROBERT B MORRIS III TELECOMMUNICATIONS ANALYST AT GOLDMAN SACHS & CO FOR AS LONG AS I CAN REMEMBER CABLE TV AND MULTIMEDIA OPPORTUNITIES HAVE BEEN HIS HIGHPRIORITY FOCUS WITH GIANT TELECOMMUNICATIONS INC BEHIND HIM MR SMITH HAS UPGRADED HIS JOB DESCRIPTION BESIDES RUNNING ONE OF THE WORLD'S BIGGEST PHONE COMPANIES HE COULD POTENTIALLY COME TO DOMINATE NEWFANGLED INTERACTIVE MULTIMEDIA SERVICES THAT COMBINE VOICE DATA AND VIDEO TECHNOLOGIES THIS DEAL PROPELS BELL ATLANTIC INTO THE LOFTY STATUS OF BEING ONE OF THE WORLD'S LARGEST AND MOST DIVERSIFIED MULTIMEDIA TELECOMMUNICATIONS COMPANIES SAYS BERGE AYVAZIAN AN ANALYST AT THE YANKEE GROUP A BOSTON RESEARCH FIRM ITS PHONE COMPANIES MERELY BECOME ONE OF A PORTFOLIO OF HOLDINGS EVEN WITHOUT TCI BELL ATLANTIC'S ASSETS ARE FORMIDABLE BELL ATLANTIC'S FIVE PHONE COMPANIES CONTROL 18 MILLION PHONE LINES THAT REACH INTO HOMES AND BUSINESSES IN SIX MIDDLE ATLANTIC STATES AND WASHINGTON DC THOSE LINES HELP TO GENERATE 5 BILLION IN ANNUAL CASH FLOW ITS CELLULAR PHONE COMPANY BELL ATLANTIC MOBILE SERVES 15 STATES AND MORE THAN 850000 CUSTOMERS AND PLANS NEW WIRELESS SERVICES TO BE OFFERED TO TENS OF MILLIONS OF CONSUMERS A RECENT 104 BILLION INVESTMENT IN A MEXICAN COMMUNICATIONS COMPANY IS TARGETING 26 MILLION POTENTIAL CELLULAR PHONE SUBSCRIBERS BELL ATLANTIC IS ALSO ONE OF THE WORLD'S LARGEST COMPUTER SERVICES COMPANIES AND NETWORK SOFTWARE PROVIDERS BUT BELL ATLANTIC'S HIGHEST AMBITIONS ARE IN INTERACTIVE MULTIMEDIA SERVICES WITH TCI'S LINES THAT REACH ANOTHER 10 MILLION CUSTOMERS IN 49 STATES THE BABY BELL'S TENTACLES WILL STRETCH FROM COAST TO COAST TCI IS IN 57 OF THE TOP 100 US MARKETS AND ULTIMATELY WE'LL PUT IN SWITCHING SYSTEMS TO TURN TCI INTO A FULLY INTERACTIVE SYSTEM THAT CARRIES EVERYTHING FROM PHONE CALLS TO HIGHGRADE VIDEO CONVERSATIONS SAYS JOHN SEAZHOLTZ BELL ATLANTIC'S VICE PRESIDENT OF TECHNOLOGY INTERACTIVITY IS OUR FOCUS BELL ATLANTIC HAS FOUGHT LONG AND HARD FOR PERMISSION TO REALIZE THIS DREAM WHILE OTHER BELL COMPANIES DAWDLED BELL ATLANTIC IN AUGUST WON APPROVAL FROM A FEDERAL APPEALS COURT IN ALEXANDRIA VA TO OFFER VIDEO SERVICES THROUGH ITS PHONE LINES THE DECISION WHICH COUNTERED RESTRICTIONS PUT ON THE COMPANY AT THE TIME OF THE AMERICAN TELEPHONE & TELEGRAPH CO BREAKUP IN 1984 GAVE BELL ATLANTIC ALONE THE RIGHT TO AGGRESSIVELY INVEST IN ITS OWN NETWORK AND FORCEFULLY PURSUE A MERGER PACT WITH TCI NOTED KENNETH LEON AN ANALYST AT LEHMAN BROTHERS THE BABY BELLS EACH HAVE TO PURSUE THEIR OWN COURT PERMISSION HE UPGRADED BELL ATLANTIC'S STOCK TO OUTPERFORM FROM A NEUTRAL RATING NUMEROUS ENTERTAINMENT GIANTS HAVE JOINED IN SEVERAL BELL ATLANTIC VIDEO TESTS WHICH WILL PUMP TV SERVICES TO MORE THAN 100000 SUBSCRIBERS IN NEW JERSEY AND VIRGINIA OVER THE NEXT YEAR THE COLLABORATORS INCLUDE WALT DISNEY MGM UA UNIVERSAL COLUMBIA TRI STAR PARAMOUNT 20TH CENTURY AND WARNER BROTHERS SUCH BROADCASTERS AS NBC AND SUCH PROGRAMMERS AS HBO AND USA NETWORK MAJOR EQUIPMENT SUPPLIERS ARE ALSO BACKING BELL ATLANTIC'S MULTIMEDIA ASPIRATIONS INCLUDING IBM WHICH IS TESTING COMPUTER SYSTEMS THAT PROVIDE VCRQUALITY VIDEO PROGRAMS TO 200 BELL ATLANTIC CUSTOMERS IN THE WASHINGTON AND ALEXANDRIA VA AREA SEPARATELY BELL ATLANTIC HAS HIRED AN INVESTMENT BANKER TO HELP IT EVALUATE WAYS TO EXIT FROM ITS FINANCIAL SERVICES OPERATIONS THEY INCLUDE LEASING COMPUTER LEASING AND REALESTATE COMPANIES AND HAD REVENUE OF 500 MILLION IN 1992 BELL ATLANTIC WHICH HAS BEEN GRADUALLY SHEDDING NONCORE BUSINESSES OVER THE PAST TWO YEARS SAID ITS LATEST PLAN WOULD HAVE OCCURRED WITH OR WITHOUT THE PROPOSAL TO BUY TCI BELL ATLANTIC WILL CONSIDER VARIOUS OPTIONS FOR THE FINANCIAL SERVICES BUSINESS INCLUDING A PRIVATE SALE SPINOFF OR A PUBLIC STOCK OFFERING TO PROVIDE ITS NEW SERVICES BELL ATLANTIC IS PUSHING A HUGE OVERHAUL OF ITS COMMUNICATIONS NETWORKS WITH A MULTIBILLIONDOLLAR PLAN TO REWIRE ITSELF WITH FIBEROPTIC LINES TO REINFORCE TCI'S REACH BELL ATLANTIC WILL RAPIDLY DEPLOY FIBEROPTIC TRANSMISSION LINES PARTICULARLY IN OTHER TERRITORIES NOW COVERED BY THE OTHER SIX BABY BELL COMPANIES MR SEAZHOLTZ SAYS BELL ATLANTIC HOPES A HIGHCAPACITY NETWORK WILL PROVIDE BUSINESS CUSTOMERS WITH ANOTHER MEANS OF REACHING LONGDISTANCE PHONE COMPANIES POTENTIALLY GENERATING BILLIONS OF DOLLARS IN ADDITIONAL FEES TCI IS ALREADY A 30OWNER OF TELEPORT COMMUNICATIONS GROUP A PIONEER OF SUCH SERVICES ANALYSTS EXPECT THE NEW BELL ATLANTIC TO TRY TO INTEGRATE THIS NEW HIGHCAPACITY FIBEROPTIC NETWORK WITH ITS CELLULAR SYSTEMS THIS SHOULD DRIVE DOWN NETWORK OPERATING COSTS EVEN AS THE COMPANY EXPANDS INTO NEW HIGHSPEED DATA AND VIDEO TRANSMISSION SERVICES ULTIMATELY SUCH SERVICES MAY LEAVE BELL ATLANTIC'S BELL COUSINS IN THE DUST MR MORRIS NOTES THAT EXPANDING INTO TCI'S MARKETS WILL PIT YET ANOTHER CONTENDER FOR TRADITIONAL PHONE CUSTOMERS IN THE BELL COMPANIES' BACKYARDS AND TO FIGHT BACK THEY WILL BE LEFT WITH LESSER CABLE PROPERTIES THAT WILL FETCH HIGHER PRICES BECAUSE OF THIS DEAL SOMEBODY'S BOUND TO COME UP SHORT HE SAYS 9310140117 931014 INTERNATIONAL BRIEF CIBAGEIGY AG DRUG MAKER EXPECTS PROFIT TO RISE DESPITE FLAT '93 SALES CIBAGEIGY AG THE SWISS CHEMICAL AND DRUG MAKER ANTICIPATES A RISE IN PROFIT THIS YEAR DESPITE FLAT SALES IN THE FIRST NINE MONTHS BUT THE COMPANY WARNED INVESTORS THAT ANY JUMP IN EARNINGS WOULD BE RESTRICTED BY LACKLUSTER ECONOMIC PERFORMANCE IN MANY MARKETS FOR 1992 CIBA RECORDED A 19 SURGE IN NET INCOME TO 152 BILLION SWISS FRANCS 109 BILLION CIBA DOESN'T RELEASE QUARTERLY PROFIT FIGURES BUT IN THE FIRST SIX MONTHS OF 1993 NET WAS UNCHANGED AT 14 BILLION SWISS FRANCS CIBA YESTERDAY REPORTED SALES TOTALING 1708 BILLION FRANCS IN THE FIRST NINE MONTHS OF THIS YEAR ABOUT THE SAME LEVEL AS IN THE CORRESPONDING PERIOD IN 1992 THE RESULTS CIBA ADDED REPRESENT IMPROVEMENT OVER THE FIRST HALF OF 1993 WHEN SALES DROPPED BY 2 HEALTH CARE AGRICULTURE AND INDUSTRY ALL RECOVERED FURTHER IN COMPARISON WITH THE FIRST HALF OF 1993 CIBA SAID WHILE DRUG SALES FELL 6 IN THE FIRST HALF THE DROP WAS LIMITED TO 1 FOR THE NINE MONTHS 9310140116 931014 SMALLSTOCK FOCUS COMMUNICATIONS STOCKS SOAR ON NEWS OF ACQUISITION LIFT INDEX TO A RECORD BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERGER NEWS DROVE SMALL STOCK PRICES HIGHER WITH COMMUNICATIONS STOCKS LEADING THE WAY BELL ATLANTIC CORP'S ANNOUNCEMENT THAT IT WILL ACQUIRE TELECOMMUNICATIONS INC SENT COMMUNICATION AND TELECOMMUNICATION STOCKS SOARING THE MERGER TURNED THE WHOLE SECTOR INCLUDING CELLULAR AND CABLE STOCKS INTO ACTION SAID PETER COOLIDGE A SENIOR EQUITY TRADER AT KIDDER PEABODY & CO THE NAME OF THE GAME WAS TELECOMMUNICATIONS MR COOLIDGE SAID ALTHOUGH THESE STOCKS HAVE BEEN HOT FOR THE PAST FEW MONTHS THE MERGER BROUGHT NEW ATTENTION TO THE GROUP AND A LOT OF NEW MONEY WAS BEING THROWN INTO THESE STOCKS ON THE SMALLER SIDE OF THE TELECOMMUNICATIONS GROUP PITTENCRIEFF COMMUNICATIONS JUMPED 1 1/8 TO 26 1/4 PEOPLE'S CHOICE TV ROSE 1 TO 41 1/4 AND NEXTEL COMMUNICATIONS LEAPED 3 TO 48 3/4 IN ADDITION SOME SMALLER CABLE COMPANIES POSTED BIG GAINS ADELPHIA COMMUNICATIONS JUMPED 3 3/4 TO 23 3/4 BASED IN COUDERSPORT PA ADELPHIA OWNS AND OPERATES CABLE TELEVISION SYSTEMS TYLER TEXASBASED TCA CABLE TV JUMPED 1 1/4 TO 27 1/8 BROADBAND TECHNOLOGIES SURGED 5 3/4 TO 43 THE BALTIMORE MD COMPANY MAKES A SYSTEM THAT WOULD BE MAINLY USED IN LINKING UP INDIVIDUAL HOMES TO A MUCH BROADER TELECOMMUNICATIONS NETWORK THE COMPANY'S STOCK PRICE WAS PROPELLED BY THE BELL ATLANTICTCI DEAL BECAUSE BROADBAND IS CURRENTLY TESTING ITS FIBEROPTIC EQUIPMENT WITH BELL ATLANTIC FOR USE IN TRANSMITTING VIDEO SIGNALS TO CUSTOMER HOMES SAID BROADBAND OFFICIALS YESTERDAY AT A TECHNOLOGY CONFERENCE IN BALTIMORE SPONSORED BY ALEX BROWN & SONS SPECTRUM INFORMATION TECHNOLOGIES ROSE 1 3/32 TO 7 15/32 ON 11 MILLION SHARES THE COMPANY ANNOUNCED AN AGREEMENT WITH ROCKWELL INTERNATIONAL CORP TO JOINTLY DEVELOP AND MARKET PRODUCTS INCORPORATING SPECTRUM'S PROPRIETARY CELLULAR DATA COMMUNICATIONS TECHNOLOGY IN OTHER ACQUISITION NEWS LGF BANCORP INC JUMPED 3 3/4 TO 32 1/4 ON TUESDAY FIRST OF AMERICA BANK CORP SAID IT AGREED TO ACQUIRE LGF BANCORP LA GRANGE ILL IN A STOCK SWAP VALUED AT 67 MILLION UNDER THE AGREEMENT SHAREHOLDERS OF LGF BANCORP WILL RECEIVE 08754 COMMON SHARES OF FIRST AMERICA FOR EACH LGF BANCORP SHARE MEDICAL MARKETING GROUP PLUNGED 7 TO 26 3/4 MEDICAL MARKETING GROUP SAID IT RECEIVED A PROPOSAL FROM MEDCO CONTAINMENT SERVICES AND MERCK & CO UNDER WHICH MEDCO WOULD BUY THE REMAINING 458 EQUITY STAKE IT DOESN'T ALREADY HOLD IN MEDICAL MARKETING GROUP FOR 25 A SHARE WHICH IS LESS THAN INVESTORS EXPECTED TRADERS SAID THE PROPOSAL IS SUBJECT TO THE PREVIOUSLY REPORTED MERGER AGREEMENT BETWEEN MERCK AND MEDCO MEDICAL MARKETING SAID OM GROUP FINISHED UNCHANGED AT 14 ITS INITIAL OFFERING PRICE THE COMPANY OFFERED 11 MILLION SHARES THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS THE COMPANY HAD EXPECTED THE SHARES TO BE OFFERED BETWEEN 15 AND 17 EACH THE CLEVELAND COMPANY WHICH MAKES METALBASED SPECIALTY CHEMICALS WAS FORMED IN 1991 BY THE COMBINATION OF MOONEY CHEMICALS KOKKOLA CHEMICALS OY AND VASSET SA UNCLE B'S BAKERY DROPPED 1/4 TO 2 7/8 FROM ITS INITIAL OFFERING PRICE OF 3 1/8 THE BOTTOM OF ITS EXPECTED RANGE UNCLE B'S BAKERY OFFERED 16 MILLION SHARES THROUGH UNDERWRITERS LED BY JOHN G KINNARD & CO THE SIZE OF THE OFFERING WAS DECREASED FROM THE ORIGINALLY PLANNED 18 MILLION SHARES UNCLE B'S PRODUCES AND MARKETS BAGELS AND SAID ITS PRODUCT IS CURRENTLY AVAILABLE AT 4000 SUPERMARKETS IN 27 STATES MCAFEE ASSOCIATES DROPPED 1 5/8 TO 6 AFTER TRADING CLOSED ON TUESDAY THE SANTA CLARA CALIF MAKER OF PERSONAL COMPUTER SOFTWARE REPORTED THIRDQUARTER EARNINGS OF 16 CENTS A SHARE JUST ABOVE LAST YEAR'S 15 CENTS A SHARE PRO FORMA FOR THE COMPANY'S OCT 6 1992 INITIAL PUBLIC OFFERING CNS JUMPED 1 1/4 TO 5 5/8 THE MINNEAPOLIS MINN COMPANY SAID AFTER TRADING ON TUESDAY THAT IT RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET ITS BREATHE RIGHT EXTERNAL NASAL DILATOR THE COMPANY SAID ITS BREATHE RIGHT IS A DISPOSABLE PRODUCT THAT IS PLACED ACROSS THE NOSE AND EXERTS A LIFTING FORCE TO OPEN THE NASAL PASSAGES 9310140115 931014 MONEY FUND YIELDS FELL IN THE LATEST WEEK YIELDS ON TAXABLE AND TAXFREE MONEYMARKET FUNDS DECLINED IN THE LATEST WEEK BUT TAXFREE FUNDS CONTINUED TO OFFER A YIELD ADVANTAGE TO INVESTORS IN THE TOP TAX BRACKETS IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS DROPPED A BIT TO 267 FROM 271 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE AVERAGE TAXEXEMPT SEVENDAY COMPOUND YIELD FELL TO 212 FROM 232 ACCORDING TO MONEY FUND REPORT THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 331 FOR SOMEONE PAYING 36 IN TAXES AND TO 351 FOR SOMEONE PAYING 396 WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE LOWER YIELDS TO SEASONAL ADJUSTMENTS ASSETS OF 617 TAXABLE FUNDS ONE FEWER THAN IN THE PREVIOUS WEEK INCREASED BY 176 BILLION TO 46794 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS PUT IN MORE THAN 2 BILLION WHILE INDIVIDUAL INVESTORS TOOK OUT 2403 MILLION AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER OR SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 63 DAYS ASSETS OF 329 TAXEXEMPT FUNDS ROSE BY 129 BILLION TO 10439 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY SHORTENED BY ONE DAY TO 68 DAYS 9310140114 931014 GM'S ELECTRIC CARS TO GET TEST DRIVES IN 12 CITIES DETROIT GENERAL MOTORS CORP SAID IT WILL LAUNCH A TWOYEAR TESTDRIVE PROGRAM NEXT YEAR INVOLVING 50 OF ITS ELECTRICPOWERED IMPACT CARS FOR A CUSTOMER EVALUATION PROGRAM THAT IS EXPECTED TO LEAD TO A BETTER UNDERSTANDING OF HOW MUCH CONSUMERS WILL PAY FOR THE FUTURISTIC VEHICLES THE PROGRAM WILL BE CONDUCTED IN CONJUNCTION WITH UTILITY COMPANIES IN 12 US CITIES AND IS EXPECTED TO INVOLVE MORE THAN 1000 MOTORISTS GM SAID THE OVERALL COST OF THE PROGRAM INCLUDING PRODUCTION OF THE 50 ELECTRIC VEHICLES WILL BE 30 MILLION THE CITIES INVOLVED IN THE PILOT PROGRAM ARE NEW YORK LONG ISLAND CITY NY WASHINGTON HARRISBURG PA FORT LAUDERDALE FLA ATLANTA HOUSTON PHOENIX SACRAMENTO CALIF SAN DIEGO SAN FRANCISCO AND LOS ANGELES LAST DECEMBER GM CANCELED PLANS TO BUILD THE ELECTRICPOWERED IMPACT SPORTS COUPE FOR THE 1995 MODEL YEAR AFTER THE AUTO MAKER CITED FINANCIAL CONSTRAINTS CALIFORNIA HOWEVER HAS MANDATED THAT AUTO MAKERS SELLING VEHICLES IN THE STATE MUST HAVE 2 OF THEIR SALES COME FROM ZEROEMISSION VEHICLES OR ELECTRIC CARS BY 1998 9310140113 931014 THE INTERACTIVE AGE CAN THE EXALTED VISION BECOME REALITY EARLY ATTEMPTS SHOW BUYERS MAY BE LEERY BY WILLIAM M BULKELEY AND JOHN R WILKE STAFF REPORTERS OF THE WALL STREET JOURNAL SUPPOSE THEY THREW AN INTERACTIVE PARTY AND NOBODY CAME WITH BELL ATLANTIC CO'S AGREEMENT TO BUY TELECOMMUNICATIONS INC CAPTAINS OF INDUSTRY ARE BETTING THAT CONSUMERS ARE EAGER TO BUY INTERACTIVE COMMUNICATIONS SERVICES BUT EARLY TRIALS OF SUCH COMMERCE AND OTHER RELATED BUSINESSES SHOW THAT JUST BECAUSE INTERACTIVITY IS AVAILABLE DOESN'T MEAN CONSUMERS WILL BUY IT THIS TIME COULD BE DIFFERENT OF COURSE AFTER ALL IN THE 1970S AND '80S MANY PEOPLE DOUBTED THAT PERSONAL COMPUTERS AND COMPACT DISK PLAYERS WOULD BECOME WIDELY USED AND MOST PEOPLE IN THE TELECOMMUNICATIONS INDUSTRY BELIEVE THAT ALTHOUGH THE HYPE ABOUT INTERACTIVITY HAS THUS FAR EXCEEDED THE REALITY THE NUMBER OF CURRENT USERS OF INTERACTIVE TELEVISION SYSTEMS IS ONLY IN THE THOUSANDS THERE WILL CERTAINLY BE MORE AND BETTER INTERACTIVE SYSTEMS IN THE FUTURE BUT IN A FEW EARLY EXPERIMENTS CONSUMERS DID NOT ENTHUSIASTICALLY EMBRACE THE IDEA IN THE EARLY 1980S KNIGHTRIDDER INC LOST MILLIONS ON AN INTERACTIVE VIDEOTEXT EXPERIMENT IN FLORIDA THAT LET PEOPLE REQUEST AND READ NEWS ON THEIR TV SCREENS JC PENNEY & CO SPENT 106 MILLION ON TELACTION AN INTERACTIVE SHOPPING SYSTEM BEFORE SHUTTING IT DOWN IN 1989 SEARS ROEBUCK & CO AND INTERNATIONAL BUSINESS MACHINES CORP HAVE SPENT AN ESTIMATED 800 MILLION ON THEIR JOINTLY OWNED AND UNPROFITABLE PRODIGY SERVICES CORP IN PART BECAUSE THEY OVERESTIMATED THE DESIRE OF COMPUTER USERS TO SHOP ONLINE THE TECHNOLOGY IS ALL THERE SAYS NANCY BUSHKIN A SPOKESWOMAN FOR VIACOM INC WHICH IS BUILDING A TEST INTERACTIVE CABLE SYSTEM IN CASTRO VALLEY CALIF WHAT'S MISSING IS THE CONSUMER AND EXACTLY WHAT THE CONSUMER WANTS AND WHAT THEY'LL PAY FOR BELL ATLANTIC AND VIACOM ARE AMONG THOSE SUBLIMELY CONFIDENT THAT NEW TECHNOLOGY WILL CREATE A PRODUCT CONSUMERS WANT ONE REASON CABLE COMPANIES AND TELEPHONE COMPANIES ARE MERGING IS BECAUSE WHILE CABLE FIRMS KNOW TELEVISION TELEPHONE COMPANIES ARE EXPERTS ON INTERACTIVITY OR TWOWAY COMMUNICATIONS SERVICES INTERACTIVE TELEVISION LETS VIEWERS ORDER MOVIES SHOP FROM TELEVISED CATALOGS PLAY GAMES WITH OTHER SUBSCRIBERS OR DO RESEARCH FOR SCHOOL REPORTS BUT DESIGNING INTERACTIVE TELEVISION IS A CHALLENGE TO CONVENTIONAL MARKET RESEARCH BECAUSE CONSUMERS' REACTION TO NEW SERVICES CAN'T BE GAUGED WELL UNTIL THEY ACTUALLY PRESS THE ON BUTTON FOR EXAMPLE MARKET SURVEYS TOLD PRODIGY THAT PEOPLE WANTED TO DO THEIR GROCERY SHOPPING BY COMPUTER THEY DIDN'T ONE OF THE LESSONS WE'VE LEARNED IS THAT PEOPLE DON'T ALWAYS DO WHAT THEY SAY THEY'RE GOING TO DO SAYS CHET THOMPSON VICE PRESIDENT OF ADVERTISING MERCHANDISING AND SALES AT PRODIGY A NUMBER OF THE BIG PLAYERS IN CABLE AND TELEPHONE SERVICES ARE FUNDING EXPERIMENTS TO SEE WHAT PEOPLE WANT IN THE INTERACTIVE WORLD BUT EVEN WHEN INTERACTIVE TELEVISION IS AVAILABLE IN TESTS THE RESEARCH VALUE OF RESPONSES IS LIMITED BECAUSE ADVERTISING AGENCIES WON'T SPARE THEIR MOST TALENTED PEOPLE TO DESIGN INTERACTIVE INFOMERCIALS SEEN BY ONLY A FEW HUNDRED PEOPLE IN A TRIAL TO SOME DEGREE MARKETERS HAVE TO BET THAT PRODUCERS WILL FIGURE OUT WAYS TO MAKE INTERACTIVE TELEVISION SO ATTRACTIVE THAT PEOPLE WILL PAY FOR IT WHEN YOU GET REAL HOLLYWOOD PRODUCTION VALUES THEY'LL COME OUT WITH WINNER PRODUCTS SAYS JOSHUA HARRIS PRESIDENT OF JUPITER COMMUNICATIONS CO A NEW YORK TELECOMMUNICATIONS MARKET RESEARCH FIRM ALL THE PRODUCTS NOW ARE BEING RUN BY BELLHEADS AND PROPELLERHEADS STILL EVEN THE EARLY EXPERIMENTS ARE RUNNING INTO PROBLEMS THAT RAISE DOUBTS TCI FOR EXAMPLE HAS BEEN RUNNING AN EXPERIMENT ON USE OF MOVIES ON DEMAND IN ITS HOMETOWN OF ENGLEWOOD COLO RECENTLY BRUCE RAVENAL VICE PRESIDENT OF TECHNOLOGY SAID IN A SPEECH THAT PEOPLE LIKE GETTING VIDEO ON DEMAND BUT IN TERMS OF REVENUE IT'S A WASH BECAUSE THEY STOP GETTING PREMIUM MOVIE CHANNELS LIKE HBO ACCORDING TO STEVEN SIECK A NEW YORK TELECOMMUNCIATIONS ANALYST WITH LINK RESOURCES CORP MR RAVENAL DIDN'T RETURN PHONE CALLS AND HIS OFFICE DECLINED TO MAKE THE SPEECH AVAILABLE INDEED SOME COMPANIES CAN'T BE BOTHERED BY TRADITIONAL MARKET RESEARCH OR CONSUMER TESTING WE'VE ALREADY MADE THE COMMITMENT TO REBUILD ALL OF OUR OPERATIONS INTO FULLY INTERACTIVE NETWORKS SAYS MICHAEL LUFTMAN A VICE PRESIDENT OF TIME WARNER CABLE A UNIT OF TIME WARNER INC THINGS ARE HAPPENING SO FAST RIGHT NOW THAT IF YOU WAIT AROUND TO DO ALL THE CLASSIC TESTING AND EVALUATION YOU'LL MISS THE BOAT TIME WARNER HAS SAID IT WILL SPEND 5 BILLION PAID FOR IN PART BY A 25 BILLION INVESTMENT FROM U S WEST OVER THE NEXT FIVE YEARS TO UPGRADE ITS CABLE NETWORK TO SELL AN ARRAY OF NEW SERVICES LIKE HOME SHOPPING GAMES AND VIDEOONDEMAND THE FIRST SUCH SYSTEM IN ORLANDO FLA WILL BE READY NEXT APRIL BUT IT'S NOT A TEST MR LUFTMAN SAYS IT'S SIMPLY THE FIRST STEP WE'LL BE TAKING TIME WARNER PLANNERS ARE CONFIDENT OF REVENUES BECAUSE THE SERVICES THEY PLAN TO SELL ALREADY EXIST IN OTHER FORMS VIDEO RENTALS FOR EXAMPLE ARE A 12 BILLION BUSINESS CATALOG SALES ARE 51 BILLION PROVIDING CONSUMERS WITH ALTERNATIVE ACCESS TO LONGDISTANCE CARRIERS AS PLANNED FOR NEW CABLE NETWORKS SUGGESTS BILLIONS MORE WE DON'T HAVE TO DISPLACE ANYBODY WE SIMPLY NEED TO CAPTURE A REASONABLE SHARE OF THESE AND OTHER MARKETS TO GET A REVENUE STREAM MANY TIMES WHAT WE HAVE TODAY MR LUFTMAN SAYS SOME PROBLEMS WITH INTERACTIVE SERVICES ARE UNPREDICTABLE IN CERRITOS CALIF GTE CORP LAID DOWN FIBER OPTIC CABLE TO PROVIDE INTERACTIVE SERVICE AND WANTED TO LET USERS RESERVE TIME IN COMMUNITY SWIMMING CLASSES THROUGH THEIR TELEVISION SETS BUT THE CITY NIXED THAT IDEA WE DIDN'T WANT TO GIVE CABLE SUBSCRIBERS AN ADVANTAGE SAYS MICHEL WASTAL WHO MANAGES THE CITY'S RELATIONS WITH GTE PEOPLE CAN USE THE SYSTEM TO RESERVE LIBRARY BOOKS THOMAS GREIB GTE'S DIRECTOR OF INTERACTIVE SERVICES SAYS HE HAS LEARNED OTHER LESSONS MR GREIB SAYS CUSTOMERS MAY WANT MOVIES ON DEMAND THE ABILITY TO ORDER MOVIES TO BE SHOWN WHEN THEY WANT THEM BUT THEY WON'T PAY MORE THAN ABOUT 1 MORE THAN RENTAL CHARGES AT THE LOCAL VIDEO STORE GTE ALSO FOUND THAT CONSUMERS PREFER PAYING A MONTHLY FLAT FEE TO BEING CHARGED BY THE MINUTE FOR USE AND MR GREIB ADDS THEY PREFER TO PAY 10 A MONTH RATHER THAN BUYING A SETTOP CONTROLLER BOX FOR 250 AND PAYING 5 A MONTH GTE OPERATES ONE OF THE LARGEST INTERACTIVE CABLE OPERATIONS A PROGRAM CALLED MAIN STREET THAT RUNS IN CERRITOS SOME BOSTON SUBURBS AND CARLSBAD CALIF WHERE IT HAS 2000 USERS MAIN STREET COMBINES A CABLE TV CHANNEL WITH THE HOME TELEPHONE LINE TO LET PEOPLE SHOP ORDER PLANE TICKETS BUY AND SELL STOCKS AND CHECK STOCK QUOTES AND GET NEWS OR DO RESEARCH FOR 995 A MONTH MR GREIB EXPECTS SLOW GROWTH FOR THE MARKET IT WON'T COME AS FAST AS MANY PEOPLE ARE SAYING EVENTUALLY THOUGH MY GRANDCHILDREN WILL THINK IT'S QUAINT THAT PEOPLE USED TO RUSH HOME AT 9 O'CLOCK TO WATCH ROSEANNE SEE RELATED ARTICLE TOMORROW'S TV MAY MAKE YOU A VIEWERDOER WSJ OCT 14 1993 9310140112 931014 MCDONNELL CHAIRMAN ASKS REVIEW OF BILLING PRACTICES ST LOUIS MCDONNELL DOUGLAS CORP'S CHAIRMAN ORDERED A TOPPRIORITY REVIEW OF COMPANYWIDE BILLING PRACTICES IN THE WAKE OF CONGRESSIONAL COMPLAINTS ABOUT INFLATED CHARGES BY THE COMPANY ON DEFENSE DEPARTMENT CONTRACTS RESPONDING TO ALLEGATIONS THAT THE COMPANY TRIED TO PASS ON IMPROPER BILLS TO THE PENTAGON RANGING FROM CORPORATE ENTERTAINMENT EXPENSES TO TRAVEL AND PERSONNEL CHARGES INVOLVING THE CONTRACTOR'S PARTICIPATION IN THE 1991 TAILHOOK CONVENTION CHAIRMAN JOHN MCDONNELL EXPRESSED CONCERN THAT ERRORS APPEAR TO HAVE OCCURRED TO RESOLVE THESE ISSUES PROMPTLY MR MCDONNELL INDICATED THE COMPANY WOULD INVESTIGATE ALL OF THE QUESTIONABLE BILLS IN ADDITION THE CHAIRMAN SAID I HAVE DIRECTED THAT A THOROUGH INDEPENDENT REVIEW OF OUR INTERNAL ACCOUNTING PROCESSES BE CONDUCTED 9310140111 931014 INTERNATIONAL US OFFICIALS IN TALKS WITH JAPANESE SUBMIT PLANS TO CUT TRADE IMBALANCE BY JACOB M SCHLESINGER AND CRAIG FORMAN STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO USJAPAN TRADE TENSIONS AFTER SEVERAL MONTHS OF SIMMERING ARE ABOUT TO COME TO A BOIL IN A SERIES OF NEGOTIATIONS HERE THIS WEEK AND NEXT US OFFICIALS ARE SUBMITTING THEIR FIRST CONCRETE PROPOSALS TO FLESH OUT A GENERAL FRAMEWORK FOR REDUCING THE MULTIBILLIONDOLLAR BILATERAL TRADE IMBALANCE THOSE PROPOSALS INCLUDE CONTROVERSIAL NUMERICAL BENCHMARKS IN CERTAIN SECTORS TO MEASURE PROGRESS IN EXPANDING FOREIGN BUSINESS ACTIVITY IN JAPAN THE JAPANESE HAVE REPEATEDLY REJECTED SUCH AN APPROACH AS UNACCEPTABLE THE US NEGOTIATING STANCE OUTLINED IN A BRIEFING HERE WEDNESDAY SHOWS THAT THE CLINTON ADMINISTRATION IS KEEPING ITS TOUGH TRADE STANCE EVEN AS JAPAN'S NEW COALITION GOVERNMENT STRUGGLES TO IMPLEMENT POLITICAL REFORM SOME JAPANESE HAD HOPED WASHINGTON WOULD CUT JAPAN SOME SLACK WHILE THE COUNTRY GOES THROUGH THE TRANSFORMATION US OFFICIALS ARGUE THE TRADE PRESSURE IS NEEDED TO FOSTER THE CHANGES THEY WOULD LIKE TO SEE IN TALKS ON THE INSURANCE INDUSTRY WEDNESDAY US OFFICIALS SAID THEY DEMANDED JAPAN CUT SEVERAL GOVERNMENT RULES AND REGULATIONS THE AMERICANS SAID THEIR RESEARCH SHOWS THAT THE FOREIGN SHARE OF THE JAPANESE INSURANCE MARKET IS FAR LOWER THAN IN ANY OTHER INDUSTRIALIZED NATION OVER THE NEXT THREE OR FOUR YEARS THE GAP BETWEEN JAPAN AND THE REST OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS SHOULD BE SIGNIFICANTLY REDUCED A SENIOR US GOVERNMENT OFFICIAL SAID AT A NEWS CONFERENCE HERE ACCORDING TO US NUMBERS THAT WOULD MEAN BOOSTING THE FOREIGN SHARE OF THE JAPANESE INSURANCE MARKET TO AT LEAST 10 FROM 2 THE US IS EXPECTED TO MAKE SIMILAR PROPOSALS OVER THE NEXT FEW DAYS FOR JAPAN'S MARKETS IN TELECOMMUNICATIONS EQUIPMENT MEDICAL EQUIPMENT AUTOS AND AUTO PARTS THE USJAPAN TRADE FRONT HAS BEEN RELATIVELY QUIET SINCE THE TWO COUNTRIES AGREED ON THE GENERAL FRAMEWORK IN JULY BOTH GOVERNMENTS HAVE AGREED TO SET MORE DETAILED RULES BY NEXT FEBRUARY JAPANESE OFFICIALS REJECTED THE AMERICAN ASSERTIONS ABOUT THE JAPANESE INSURANCE MARKET AND COUNTERED THAT THE US MARKET IS IN ITSELF CLOSED THE US THINKS THE FRAMEWORK TALKS ARE ONLY ABOUT ACCESS TO JAPAN SAID EISUKE SAKAKIBARA A SENIOR FINANCE MINISTRY OFFICIAL WE CAN'T ACCEPT THAT THE JAPANESE ALSO REITERATED THEIR BROADER REJECTION OF THE US NUMERICAL APPROACH SETTING NUMERICAL TARGETS LEADS TO MANAGED TRADE AND RUNS AGAINST THE PRINCIPLES OF FREE MARKETS SAID AN OFFICIAL AT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY OUR BOTTOM LINE IS OPPOSITION TO SUCH TARGETS THE OFFICIAL ADDED EVER SINCE THE CLINTON ADMINISTRATION STARTED PRESSING FOR MORE SPECIFIC TRADE TARGETS THIS YEAR THE JAPANESE HAVE TRIED TO PORTRAY THE US GOVERNMENT AS ABANDONING FREETRADE PRINCIPLES MANY ECONOMISTS HAVE TAKEN THE JAPANESE SIDE AND A NUMBER OF PROMINENT ACADEMICS RECENTLY DRAFTED A PUBLIC STATEMENT BLASTING THE ADMINISTRATION'S NEW APPROACH CLEARLY FEELING THE HEAT THE ADMINISTRATION NOW PLANS A RHETORICAL COUNTERATTACK THE JAPANESE HAVE PUT ON A MEDIA BLITZ THE LAST THREE OR FOUR MONTHS AND MAYBE WE'RE BEHIND THE CURVE A US OFFICIAL SAID BUT WE'RE GOING TO CATCH UP THE OFFICIAL SAID THE US ECONOMISTS WHO SIGNED THE CRITICAL STATEMENT SHOULD HAVE THEIR NOBEL PRIZES TAKEN AWAY HE TERMED JAPAN'S EFFORTS TO DEPICT ITSELF AS A FREE TRADER AS UTTERLY BIZARRE 9310140110 931014 BUSINESS BRIEF WEYERHAEUSER 3RDPERIOD NET FELL 38 PROFIT AT WILLAMETTE FIBREBOARD ROSE SEVERAL BIG FOREST PRODUCTS COMPANIES REPORTED MIXED RESULTS AS STRONG LOG AND LUMBER PROFITS CONTINUE TO PARTIALLY OFFSET ANEMIC PULP AND PAPER DEMAND WEYERHAEUSER CO REPORTED THAT THIRDQUARTER PROFIT SLID 38 TO 666 MILLION OR 32 CENTS A SHARE FROM YEAREARLIER PROFIT OF 1072 MILLION OR 53 CENTS SHARE THE LATEST PERIOD INCLUDED A CHARGE OF 10 CENTS A SHARE FOR A TAX RATE CHANGE THE YEAREARLIER PERIOD INCLUDED A GAIN OF A EIGHT CENTS A SHARE RELATED TO A LAWSUIT SETTLEMENT SALES FOR THE PERIOD SLIPPED 5 TO 222 BILLION FROM 235 BILLION THE RESULTS WERE IN LINE WITH ANALYSTS ESTIMATES AND WOULD HAVE BEEN FAR WORSE BUT FOR STRONG PERFORMANCE BY THE COMPANY'S LOGGING AND WOOD PRODUCTS BUSINESS WHICH HAD OPERATING EARNINGS OF 1658 MILLION UP 61 FROM 103 MILLION A YEAR AGO THAT HELPED CUSHION A SWOON IN PULP AND PAPER OPERATING PROFITS WHICH PLUNGED 96 TO 25 MILLION FROM 615 MILLION A YEAR AGO LOG AND LUMBER PRICES HAVE SLIPPED FROM NEARRECORD HIGHS EARLIER THIS YEAR BUT REMAIN WELL ABOVE LAST YEAR'S LEVELS THAT IS BOOSTING PROFITS FROM CERTAIN LOGGING LUMBER AND BUILDING PRODUCTS OPERATIONS THE HIGH PRICES REFLECT TIGHT TIMBER SUPPLIES DUE IN PART TO SPOTTEDOWL RELATED LOGGING RESTRICTIONS WILLAMETTE INDUSTRIES INC PORTLAND ORE REPORTED THAT THIRDQUARTER NET INCOME EDGED UP TO 211 MILLION OR 38 CENTS A SHARE INCLUDING A CHARGE OF 13 CENTS A SHARE FOR A TAXRATE INCREASE IN THE YEAREARLIER QUARTER WILLAMETTE EARNED 20 MILLION OR 37 CENTS A SHARE SALES FOR THE PERIOD ROSE 9 TO 6771 MILLION FROM 6225 MILLION A YEAR AGO WILLIAM SWINDELLS CHIEF EXECUTIVE OFFICER SAID EARNINGS IN WILLAMETTE'S BUILDING MATERIALS SEGMENT FOR THE QUARTER WERE DOUBLE YEAREARLIER LEVELS FIBREBOARD CORP WALNUT CREEK CALIF SAID NET INCOME FOR THE THIRD QUARTER EDGED UP TO 119 MILLION OR 27 CENTS A SHARE FROM 117 MILLION OR 28 CENTS A SHARE A YEAR EARLIER FIBREBOARD HAD 44 MILLION SHARES OUTSTANDING IN THE PERIOD COMPARED WITH 41 MILLION LAST YEAR SALES ROSE 8 TO 591 MILLION FROM 545 MILLION YESTERDAY WILLAMETTE STOCK CLOSED AT 3775 A SHARE UNCHANGED ON THE NATIONAL OVERTHECOUNTER MARKET FIBREBOARD CLOSED AT 24375 A SHARE UP 125 CENTS IN LATE TRADING ON THE AMERICAN STOCK EXCHANGE AND WEYERHAEUSER CLOSED AT 3875 A SHARE DOWN 1125 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE 9310140109 931014 WHO'S NEWS CAREMARK INTERNATIONAL CAREMARK INTERNATIONAL NORTHBROOK ILL SANDRA HARDEN AUSTIN FORMERLY EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THE UNIVERSITY OF CHICAGO HOSPITALS WAS NAMED TO THE NEW POST OF PRESIDENT HEADQUARTERS OPERATIONS FOR THE HEALTH CARE SERVICES DIVISION OF THIS PROVIDER OF ALTERNATIVE SITE HEALTH CARE THE MOVE IS EFFECTIVE JAN 1 9310140108 931014 BUSINESS BRIEF COLTEC INDUSTRIES INC ACCORD REACHED ON MAKING COLTEC HOLDINGS INC A UNIT COLTEC INDUSTRIES INC AND COLTEC HOLDINGS INC SAID THEY AGREED ON A SHARE EXCHANGE THAT WOULD MAKE COLTEC HOLDINGS A UNIT OF COLTEC INDUSTRIES CLOSELY HELD COLTEC HOLDINGS WHICH OWNS ABOUT 25 MILLION SHARES OR 357 OF COLTEC INDUSTRIES IS CONTROLLED PRIMARILY BY INSTITUTIONAL INVESTORS COLTEC HOLDINGS SHAREHOLDERS WILL EXCHANGE THEIR SHARES FOR ABOUT 248 MILLION SHARES OF COLTEC INDUSTRIES COLTEC INDUSTRIES SAID IT WOULD USE 267 MILLION IN CASH HELD BY COLTEC HOLDINGS TO RETIRE DEBT AND PLACE THE COLTEC INDUSTRIES SHARES IN ITS TREASURY AS A RESULT OF THE TRANSACTION COLTEC INDUSTRIES AN AEROSPACE AUTOMOTIVE AND INDUSTRIAL PRODUCTS CONCERN SAID IT WILL HAVE SLIGHTLY FEWER SHARES OUTSTANDING COLTEC HOLDINGS HAS NO OPERATIONS 9310140107 931014 INTERNATIONAL DAIMLERBENZ UNIT IS BOOSTING DIVIDEND FRANKFURT MERCEDES AG HOLDING OR MAH WILL BOOST ITS DIVIDEND FOR THE FISCAL YEAR ENDED SEPT 30 TO 149 MARKS 934 A SHARE FROM 13 MARKS IN THE PREVIOUS YEAR MAH WHICH DOESN'T HAVE ANY INDUSTRIAL OPERATIONS OF ITS OWN IS A HOLDING COMPANY CREATED SOLELY AS PART OF A TAKEOVER DEFENSE STRATEGY FOR ITS PARENT COMPANY DAIMLERBENZ AG MAH FOR THE PAST 14 YEARS HAS HELD 2523 OF DAIMLER'S EQUITY CAPITAL SHIELDING IT FROM THE NOWREMOTE THREAT OF A HOSTILE TAKEOVER DAIMLERBENZ ALSO SAID IT PLANS TO DISSOLVE MAH AND MERGE IT WITH DAIMLERBENZ AS SOON AS POSSIBLE ACCELERATING A PLAN FIRST ANNOUNCED LAST APRIL DAIMLER HAS DETERMINED THAT THE TAKEOVER DANGERS HAVE DISAPPEARED AND THAT MAH HAS OUTLIVED ITS USEFULNESS 9310140106 931014 INTERNATIONAL BAILOUT PLAN FAILS TO HELP FERRUZZI SHARES BY MAUREEN KLINE AND LISA BANNON STAFF REPORTERS OF THE WALL STREET JOURNAL MILAN AS FOREIGN CREDITOR BANKS REVIEW THE RESCUE PACKAGE TO SAVE THE DEBTRIDDEN FERRUZZI GROUP OF ITALY INVESTORS ARE DUMPING THEIR SHARES IN THE HOLDING COMPANY FERRUZZI FINANZIARIA SPA'S STOCK WAS SUSPENDED FROM TRADING SEVERAL TIMES YESTERDAY BECAUSE OF EXCESSIVE SELLING AND LAST TRADED AT 308 LIRE 20 CENTS OFF 25 FROM TUESDAY THE TUMBLE CAME AFTER TWO DAYS OF STEEP GAINS ANALYSTS TOOK DIFFERENT VIEWS OF THE DROP IT'S NORMAL IN A CASE LIKE THIS SAID MASSIMO CENCI OF MILLA & CO SIM SPA IN MILAN WE EXPECTED ROLLERCOASTER BEHAVIOR ANOTHER MILAN ANALYST WAS MORE WARY UNTIL THE PLAN IS APPROVED INVESTORS ARE BUYING COMPLETELY BLINDLY HE SAID AND ASSUMING THE PLAN IS APPROVED A THREEPART CAPITAL INCREASE OUTLINED IN IT WILL SEVERELY DILUTE THE VALUE OF FERRUZZI SHARES NOW TRADED ON THE STOCK MARKET ANALYSTS SAID THE LEADING 21 ITALIAN BANKS MOST EXPOSED TO FERRUZZI INDICATED THEY WOULD FORMALLY APPROVE THE RESCUE PACKAGE BEFORE TODAY'S BOARD MEETINGS OF FERRUZZI AND ITS MAIN OPERATING COMPANY MONTEDISON SPA THE MEETINGS WERE CALLED TO APPROVE THE TWO GROUPS' FIRSTHALF 1993 RESULTS BUT FOREIGN BANKS WHICH ARE OWED SOME 4 BILLION OF THE 18 BILLION IN DEBT OUTSTANDING REMAIN CAUTIOUS IN GIVING A GREEN LIGHT TO THE PLAN TWO OF THE MAIN FOREIGN CREDITORS SAID TNG JUDGMENT UNTIL THEY CAN MORE CLOSELY STUDY THE 600PAGE PACKAGE THE FOREIGN BANKS ARE EXPECTED TO MAKE A DECISION BY THE END OF THIS MONTH DETAILS OF THE PLAN TO SAVE FERRUZZI WERE RELEASED DURING THE WEEKEND AND INVESTORS INITIALLY GREETED THE PROPOSAL WITH ENTHUSIASM PRESUMABLY BECAUSE OF THE NEARCERTAINTY THE GIANT COMPANY WOULD INDEED BE SAVED BUT AFTER THE ENTHUSIASM SETTLED AND IT WAS ANNOUNCED THAT SHARES WOULD BE GROUPED TOGETHER AS SOON AS TOMORROW INVESTORS CALCULATED THE SHARES TRADED IN FACT HAD VERY LITTLE VALUE THE SECOND PART OF THE CAPITAL INCREASE AS DETAILED IN THE PLAN AND STILL TO BE APPROVED WILL BE RESERVED TO CREDITOR BANKS ESSENTIALLY IT WILL BE A DEBTFOREQUITY SWAP WITHOUT AN EXCHANGE OF ACTUAL CASH AFTER THAT ANALYSTS' CALCULATIONS SHOW BANKS WILL OWN 80 OF FERRUZZI'S ORDINARY CAPITAL ASSUMING THEY SUBSCRIBE THEIR PART OF THE FIRST CAPITAL INCREASE THE DILUTION EFFECT COULD CAUSE THE SHARE PRICE TO FALL FURTHER SAID ONE ANALYST WHO ASKED NOT TO BE NAMED THE THIRD PART OF THE CAPITAL INCREASE ACCORDING TO THE LEAKED PLAN WILL BE A MORE TRADITIONAL RIGHTS ISSUE ON THE MARKET IN ORDER FOR THE COMPANY TO RAISE 7966 BILLION LIRE IN FRESH CAPITAL FERRUZZI'S MAIN INDUSTRIAL HOLDING MONTEDISON IS A MUCH BETTER STOCK BUY ANALYSTS SAID ASSUMING THE PLAN IS APPROVED AND MONTEDISON IS RELIEVED OF ITS HEAVY DEBTSERVICING OBLIGATIONS OVER THE NEXT FIVE YEARS THE COMPANY COULD EXPLODE WITH PROFITS ONE ANALYST SAID 9310140105 931014 POLITICS & POLICY CLINTON ADMINISTRATION ACCUSES BONN OF BLOCKING ITS EFFORTS TO ISOLATE IRAN BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON GERMANY HAS EMERGED AS IRAN'S CHAMPION IN THE WEST AND IS INFURIATING THE CLINTON ADMINISTRATION BY OBSTRUCTING US EFFORTS TO ISOLATE THE REGIME IN TEHRAN IN RECENT MONTHS NEGOTIATIONS HAVE BEGUN ON RESTRUCTURING TEHRAN'S SHORTTERM DEBT TO GERMAN FINANCIAL INSTITUTIONS WHICH WOULD RELIEVE IMMENSE PRESSURE ON THE GOVERNMENT GERMANY ALSO HAS BLOCKED OR OBJECTED TO INITIATIVES TO RESTRICT WESTERN TRADE WITH IRAN UNTIL IT HALTS TERRORIST ACTIVITIES AND ITS HUGE ARMS BUILDUP A GERMAN COMPANY ALSO MAY BE INVOLVED IN TALKS TO HELP IRAN COMPLETE WORK ON A MASSIVE NUCLEAR REACTOR GERMAN DIPLOMATS INSIST THAT THEIR GOVERNMENT HAS A DIFFERENT APPROACH TOWARD IRAN INSTEAD OF ISOLATING THE REGIME THEY SAY IT IS MORE PRODUCTIVE TO ENGAGE IRAN CONSTRUCTIVELY TO TRY TO PERSUADE IT TO ALTER ITS BEHAVIOR BUT US OFFICIALS INSIST THAT GERMANY'S ACTIONS HAVE GONE FAR BEYOND THAT ALTHOUGH USGERMAN RELATIONS ARE BASICALLY SOUND SECRETARY OF STATE WARREN CHRISTOPHER RECENTLY DELIVERED A STERN MESSAGE DURING A MEETING WITH GERMANY'S FOREIGN MINISTER TO COMPLAIN ABOUT ACTIONS TOWARD IRAN MR CHRISTOPHER TOLD HIS GERMAN COUNTERPART THAT THE US WAS PARTICULARLY DISTURBED BY SEVERAL HIGHLEVEL IRANIAN VISITS TO BONN AND THAT AT A TIME WHEN IRAN WAS TRYING TO UNDERMINE THE MIDDLE EAST PEACE PROCESS IT WAS IMPORTANT TO PUT PRESSURE ON TEHRAN NOT REWARD IT AFTER THE MEETING US OFFICIALS SHARED WITH GERMAN OFFICIALS US INTELLIGENCE THAT DOCUMENTED EXAMPLES OF IRANIAN SUPPORT FOR TERRORIST ACTIVITIES THE US HAS URGED ITS ALLIES TO FORGO COMMERCIAL INTERESTS AND JOIN IN PRESSURING IRAN FOLLOWING A MEETING WITH ALLIES IN LUXEMBOURG IN JUNE MR CHRISTOPHER SAID IRAN'S ECONOMY IS IN TROUBLE IRAN WILL BE VULNERABLE TO CONCERTED PRESSURE FROM THE WEST EARLIER THIS YEAR GERMANY AND FRANCE CONCERNED ABOUT IRAN'S MOUNTING FOREIGN DEBT HEEDED THE US MESSAGE AND CURBED THEIR CREDITS TO TEHRAN BY MARCH GERMAN FINANCIAL INSTITUTIONS HAD STOPPED HONORING LETTERS OF CREDIT FROM FIVE MAJOR IRANIAN BANKS BUT NOW AFTER A SERIES OF HIGHLEVEL VISITS FROM TEHRAN NEGOTIATIONS ARE UNDER WAY TO RESCHEDULE ABOUT 5 BILLION IN SHORTTERM IRANIAN DEBT INCLUDING ABOUT 1 BILLION THAT IS DUE THIS YEAR IN ADDITION ACCORDING TO A SENIOR US OFFICIAL GERMANY IS TRYING TO PERSUADE FRANCE AND ITALY TO DO THE SAME SHORTTERM DEBT IS EXACTLY WHERE IRAN IS VULNERABLE THE OFFICIAL SAYS IF THEY CAN'T REPAY THEIR SHORTTERM DEBT CORPORATIONS WON'T DO BUSINESS WITH THEM THE OFFICIAL COMPLAINS THAT GERMANY IS UNDERMINING US POLICY AND EVEN WORKING WITH IRAN TO THWART IT BONN ALSO IS STRENGTHENING OTHER MORE OMINOUS TIES THIS MONTH IRAN'S MINISTER OF INTELLIGENCE AND SECURITY ALI FALLAHIANKHUZESTANI VISITED GERMANY ON HIS SCHEDULE WAS A MEETING WITH HIS GERMAN COUNTERPART AS WELL AS A PRIVATE MEETING WITH OFFICIALS AT SIEMENS AG WHICH ONCE HAD A CONTRACT TO BUILD THE BUSHEIR NUCLEAR REACTOR FOR THE SHAH OF IRAN THE OVERTHROW OF THE SHAH AND THE IRANIRAQ WAR PUT THE PROJECT ON HOLD EVEN THOUGH MUCH OF IT HAD ALREADY BEEN PAID FOR BY TEHRAN AS A RESULT OF US PRESSURE SIEMENS SAID AFTER THE IRANIRAQ WAR THAT IT WOULDN'T COMPLETE THE PROJECT NOW HOWEVER IT MAY BE COMING OUT OF THE DEEP FREEZE IRANIAN OFFICIALS AND THE GERMAN COMPANY ARE BELIEVED TO BE DISCUSSING A PLAN UNDER WHICH WORK ON THE REACTOR WOULD BE COMPLETED BY A SUBSIDIARY OF THE CZECH GROUP SKODA HOWEVER SIEMENS HOLDS A STAKE IN THE CZECH SUBSIDIARY ACCORDING TO INTELLIGENCE SOURCES BUT A GERMAN OFFICIAL SAID BONN HAD DECIDED NOT TO COOPERATE IN THE BUSHEIR PROJECT AND THEREFORE IT WAS EXTREMELY UNLIKELY THAT SIEMENS WAS INVOLVED SOME US OFFICIALS SAY BONN IS ENCOURAGING OR AT LEAST NOT BLOCKING SUCH ACTIVITIES BECAUSE THEY PROVIDE EXPORT EARNINGS TO A GERMAN ECONOMY THAT HAS BEEN HARDPRESSED BY THE COSTS OF UNIFICATION WITH THE FORMER EAST GERMANY HISTORICALLY GERMANY ALSO HAS HAD A SPECIAL RELATIONSHIP WITH IRAN WHILE THE US AND BRITAIN HELD SWAY OVER MOST OF THE MIDDLE EAST GERMANY BELIEVED THAT TEHRAN WAS ITS SPHERE OF INFLUENCE US OFFICIALS COMPLAIN THAT GERMANY HAS BECOME IRAN'S PRIMARY SUPPORTER IN INTERNATIONAL MEETINGS FOR EXAMPLE AT THE GROUP OF SEVEN MEETING OF MAJOR INDUSTRIAL NATIONS IN TOKYO IN JULY AND AT A MEETING LAST MONTH OF US AND EUROPEAN COMMUNITY FOREIGN MINISTERS GERMANY BLUNTED US EFFORTS TO INCREASE THE PRESSURE ON TEHRAN ONE US OFFICIAL SAID A STATEMENT ISSUED AFTER THE SEPTEMBER MEETING WOULD HAVE BEEN STRONGER HAD IT NOT BEEN FOR GERMAN OBJECTIONS WHAT'S BEHIND THIS IS A DIFFERENT VIEW OF HOW ONE SHOULD DEAL WITH IRAN SAYS A GERMAN OFFICIAL THE US BELIEVES THAT IRAN REMAINS ACTIVELY INVOLVED IN TERRORISM US INTELLIGENCE ANALYSTS BELIEVE THAT THE RECENT SHOOTING OF WILLIAM NYGAARD THE NORWEGIAN PUBLISHER OF SALMAN RUSHDIE'S THE SATANIC VERSES REPRESENTS A DOUBLE MESSAGE FROM TEHRAN IT WAS THE THIRD ATTACK ON A FOREIGNER ASSOCIATED WITH THE BOOK WHOSE AUTHOR IS UNDER A DEATH THREAT FROM IRAN FOR WHAT IT SAYS BLASPHEMES ISLAM AND ANALYSTS BELIEVE THE SHOOTING WAS MEANT TO EXPRESS IRAN'S DISPLEASURE OVER NORWAY'S PROMINENT ROLE IN PROMOTING MIDEAST PEACE 9310140104 931014 BUSINESS BRIEF TELLABS INC SHARES RISE ON QUADRUPLING OF PROFIT IN THIRD PERIOD TELLABS INC SHARES ROSE 27 TO ANOTHER 52WEEK HIGH AFTER THE MAKER OF TELECOMMUNICATIONS EQUIPMENT REPORTED STRONGERTHANEXPECTED THIRDQUARTER RESULTS ALMOST QUADRUPLE THE YEAREARLIER FIGURE THE LISLE ILL COMPANY'S NET INCOME IN THE LATEST QUARTER WAS 64 MILLION OR 43 CENTS A SHARE COMPARED WITH THE YEAREARLIER PERIOD'S 17 MILLION OR 12 CENTS A SHARE THE INCREASE CAME ON A 31 RISE IN SALES TO 771 MILLION FROM 588 MILLION THE LATEST EARNINGS ALSO SURPASSED WALL STREET'S EXPECTATION THAT TELLABS WOULD EARN IN THE NEIGHBORHOOD OF 35 CENTS A SHARE THE COMPANY CITED STRONG DEMAND FOR ITS TITAN PRODUCT AND OTHERS WHICH ARE SOLD PRIMARILY TO TELEPHONE COMPANIES TELLABS ALSO NOTED THAT GROSS PROFIT MARGINS EXCEEDED ANY PREVIOUS PERIOD TELLABS SHARES CLIMBED 2 OR 27 YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING TO CLOSE AT 7525 THE STOCK TRADED BELOW 20 AS RECENTLY AS MARCH 9310140103 931014 FIRST CHICAGO AND SHAWMUT NATIONAL POST STRONG THIRDQUARTER EARNINGS BY STEVEN LIPIN AND SUZANNE ALEXANDER STAFF REPORTERS OF THE WALL STREET JOURNAL TWO BIG BANKING COMPANIES REPORTED STRONG THIRDQUARTER RESULTS REFLECTING THE INDUSTRY'S CONTINUED EARNINGS GROWTH DESPITE SLUGGISH LOAN DEMAND FIRST CHICAGO CORP POSTED RECORD PROFIT OF 284 MILLION OR 314 A SHARE BOLSTERED BY GAINS ON THE SALE OF EQUITY INVESTMENTS AND STRONG CREDITCARD EARNINGS SHAWMUT NATIONAL CORP'S PROFIT CLIMBED MORE THAN FIVEFOLD DRIVEN BY A SHARP DROPOFF IN THE COST OF BAD DEBTS THE INDUSTRY'S POSITIVE OUTLOOK FOR THIRDQUARTER EARNINGS CONTINUED TO BOOST BANK STOCKS YESTERDAY IN NEW YORK STOCK EXCHANGE TRADING FIRST CHICAGO SHARES ROSE TO 50 UP 625 CENTS WHILE SHAWMUT'S STOCK CLIMBED TO 2450 UP 50 CENTS INDUSTRYWIDE REVENUE GROWTH IS STILL PRETTY WEAK BUT PRODUCTIVITY IS IMPROVING AND CREDIT COSTS ARE DECLINING SAID THOMAS BROWN BANKING ANALYST AT DONALDSON LUFKIN & JENRETTE THE EARNINGS MOMENTUM IS SLOWING BUT THIS IS A GROUP THAT STILL DELIVERS DOUBLEDIGIT EARNINGS GAINS FIRST CHICAGO'S BETTERTHANEXPECTED RESULTS COMPARE WITH A YEAREARLIER LOSS WHEN THE MIDWEST MONEYCENTER INCURRED A DEFICIT OF 372 MILLION OR 474 A SHARE AFTER WRITING DOWN THE VALUE OF ITS REALESTATE HOLDINGS EXCLUDING BIG EQUITY GAINS FIRST CHICAGO EARNED A RESPECTABLE 167 MILLION OR 178 A SHARE THE BANK IS BUCKING THE TREND OF WEAK REVENUE GROWTH ITS RESULTS WERE FUELED BY A 23 JUMP IN CREDITCARD RECEIVABLES TO 96 BILLION AND STRONG GAINS FROM TRADING CURRENCIES OPERATING REVENUE CLIMBED 18 THE NET INTEREST MARGIN AFTER TAKING INTO ACCOUNT NONRECURRING ITEMS WAS RELATIVELY STABLE ANOTHER GOOD SIGN THEY STILL HAD A GOOD STRONG REVENUE QUARTER SAID HENRY DICKSON AN ANALYST AT SMITH BARNEY SHEARSON SHAWMUT CITING AN 89 DECLINE IN ITS LOANLOSS PROVISION REPORTED THIRDQUARTER NET OF 711 MILLION OR 72 CENTS A SHARE IN THE YEARAGO QUARTER SHAWMUT HAD NET INCOME OF 13 MILLION OR 14 CENTS A SHARE INCLUDING 112 MILLION IN SECURITIES GAINS AND A 3 MILLION TAX CREDIT THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS AND INCLUDE A LOANLOSS PROVISION TO 5 MILLION DOWN FROM 436 MILLION A YEAR AGO SHAWMUT'S PROVISION FOR FORECLOSED PROPERTIES FELL TO 86 MILLION FROM 277 MILLION WE'RE SEEING LOWER CREDIT COSTS ASSOCIATED WITH A DRAMATIC DROP IN NONPERFORMERS SAID A SHAWMUT SPOKESMAN HARTFORD CONNBASED SHAWMUT NEW ENGLAND'S THIRDLARGEST BANK HOLDING COMPANY WITH 2696 BILLION IN ASSETS SAID NET INTEREST INCOME ROSE 14 TO 2401 MILLION REFLECTING HIGHER LEVELS OF INTERESTEARNING ASSETS AND LOWER RATES PAID ON INTERESTBEARING LIABILITIES 9310140102 931014 BUSINESS BRIEF DYNASTY CLASSICS CORP LIGHTING MANUFACTURER SEEKS BANKRUPTCYLAW PROTECTION DYNASTY CLASSICS CORP FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION IN FEDERAL COURT IN LOS ANGELES THE CARSON CALIF COMPANY WHICH MAKES CONSUMER LIGHTING PRODUCTS HAS ASSETS OF 173 MILLION AND LIABILITIES OF 108 MILLION FOR THE FIRST SIX MONTHS OF 1993 IT POSTED A NET LOSS OF 176 MILLION OR 216 A SHARE AFTER A 5 MILLION WRITEDOWN OF ASSETS ON SALES OF 191 MILLION RUSSELL SCHRECK A CRISIS MANAGEMENT CONSULTANT WHO RECENTLY WAS HIRED AS DYNASTY PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE FILING RESULTED FROM A TRANSACTION WITH ONE OF THE COMPANY'S BIGGEST CUSTOMERS FALLING THROUGH AFFECTING DYNASTY'S ACCESS TO CREDIT HE DECLINED TO IDENTIFY THE CUSTOMER UNDER CHAPTER 11 A COMPANY IS PROTECTED FROM CREDITOR LAWSUITS WHILE IT WORKS OUT A PLAN TO REPAY ITS DEBT 9310140101 931014 FINANCING BUSINESS LANDMARK GRAPHICS CORP LANDMARK GRAPHICS CORP HOUSTON SAID IT'S OFFERING TWO MILLION COMMON SHARES AT 21 EACH LANDMARK SAID 31660 PRIVATELY OWNED SHARES ARE ALSO BEING OFFERED THE OIL EXPLORATION SERVICES COMPANY SAID PROCEEDS WILL BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING WORKING CAPITAL AND POTENTIAL ACQUISITIONS AS OF JUNE 30 THE COMPANY HAD ABOUT 106 MILLION SHARES OUTSTANDING IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY LANDMARK SHARES JUMPED 150 OR 7 TO 23 9310140100 931014 CORPORATE FOCUS THE OTHER' FIDELITY IS ODD COLLECTION OF BUSINESSES VARIED HOLDINGS CONSUME TIME AND MONEY OF MUTUALFUND COMPANY BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON WHY DOES FIDELITY INVESTMENTS THE FINANCIAL BEHEMOTH KNOWN FOR ITS SINGLEMINDED DEVOTION TO MUTUAL FUNDS OWN AND OPERATE 37 ART GALLERIES A PHONE COMPANY A FLEET OF LIMOUSINES 64 NEWSPAPERS A CONVENTION CENTER A DISPATCHER SERVICE AND A HEADHUNTING FIRM WELCOME TO THE OTHER FIDELITY AN ODD COLLECTION OF BUSINESSES CALLED FIDELITY CAPITAL THAT CONFOUNDS OBSERVERS POSTS OPERATING LOSSES AND COMMANDS EVERLARGER PORTIONS OF FIDELITY INVESTMENTS' TIME AND MONEY CHAIRMAN EDWARD NED JOHNSON III WHO ALONG WITH HIS FAMILY OWNS SLIGHTLY MORE THAN HALF OF FIDELITY INVESTMENTS HAS OFTEN TALKED ABOUT DIVERSIFICATION TO MAKE THE FIRM LESS DEPENDENT ON THE UPS AND DOWNS OF THE STOCK AND BOND MARKETS ONE HIGHLEVEL FIDELITY EXECUTIVE SAYS MR JOHNSON 63 YEARS OLD IS JUST TRYING HIS HAND WITH THESE SMALL COMPANIES SO HE'S EDUCATED IN THESE VARIOUS INDUSTRIES TO MAKE A LARGE INVESTMENT AT SOME POINT MR JOHNSON WHO DECLINED TO BE INTERVIEWED SAYS IN A PREPARED STATEMENT THAT HIS STRATEGY IS FOR FIDELITY TO LEARN HOW TO REMAKE ITSELF BECAUSE YOU NEED NEW BUSINESSES TO TAKE THE PLACE OF OLDER BUSINESSES IT IS DIFFICULT HOWEVER TO IMAGINE ANYTHING REPLACING FIDELITY'S MUTUALFUND BUSINESS WHICH REPORTED 1992 NET OPERATING INCOME OF 125 MILLION ON 182 BILLION IN REVENUE AND 1993 IS TURNING OUT BETTER STILL THE FIRM HAS 243 BILLION IN ASSETS UNDER MANAGEMENT A WHOPPING 52 BILLION INCREASE SO FAR IN 1993 THIS YEAR THE HUGE MAGELLAN FUND WITH 307 BILLION IN ASSETS IS MORE THAN TRIPLING THE PERFORMANCE OF THE BENCHMARK S&P 500STOCK INDEX MEANWHILE FIDELITY CAPITAL SEEMS TO BE SPREADING IN MANY DIRECTIONS AT ONCE NOW BOASTING 16 DIFFERENT COMPANIES 1992 REVENUE OF NEARLY 138 MILLION AND 1797 EMPLOYEES 18 OF THE TOTAL STAFF OF FIDELITY INVESTMENTS THE CLOSELY HELD PARENT OF BOTH THE MUTUALFUND EMPIRE AND THE NONFINANCIAL VENTURES ONE OF FIDELITY'S ASSETS IS WORTH A PERSONALFINANCE MAGAZINE WORTH COMPETES WITH SMARTMONEY WHICH IS 50OWNED BY DOW JONES & CO PUBLISHER OF THIS NEWSPAPER FIDELITY CAPITAL IN WHICH FIDELITY INVESTMENTS HAS INVESTED 250 MILLION IN CAPITAL SINCE 1985 HAS YET TO BEAR PROFITS LEADING SOME COMPANY WATCHERS TO BEGIN TO QUESTION MR JOHNSON'S STRATEGY I THINK A LOT OF FIDELITY MUTUALFUND SHAREHOLDERS WOULD AGREE THAT THE MONEY POURED INTO FIDELITY CAPITAL WITHOUT ANY MEASURABLE RETURN COULD BE BETTER SPENT ON AREAS OF THE COMPANY THAT ARE PROFITABLE SAYS ERIC KOBREN EDITOR OF FIDELITY INSIGHT A NEWSLETTER THAT FOLLOWS THE FIRM IT'S JUST LOGICAL THAT IF THEY'D SPENT THAT TIME AND MONEY ON THE INVESTMENT SIDE THEY COULD PROVIDE SHAREHOLDERS BETTER SERVICE AT LOWER COST FIDELITY SAYS IT CHARGES MUTUALFUND HOLDERS FEES BASED ON THE COST OF SERVICING THEIR ACCOUNTS AND FUND PERFORMANCE BUT MR KOBREN ASSERTS THAT IF FIDELITY HAD INVESTED IN IMPROVED SYSTEMS AND SERVICES THOSE FEES COULD BE LOWER BUT COMPANY INSIDERS SAY FIDELITY CAPITAL EVEN MORE THAN THE CORE FUND BUSINESS UNIQUELY REFLECTS MR JOHNSON'S ECLECTIC INTERESTS AND IDEAAMINUTE ENERGIES WHICH ARE FOCUSING LESS AND LESS ON THE GENERALLY WELLMANAGED MUTUALFUND SIDE OF THE COMPANY NED MAY HAVE A HUNDRED IDEAS A DAY SOME GOOD SOME NOT BUT ALL OF THEM ENTERTAINED BECAUSE HE'S NED HE BUILT FIDELITY INTO A GIANT AND HE OWNS THE THING SAYS A TOP EXECUTIVE WHO REQUESTED ANONYMITY ALTHOUGH SOME HIGHERUPS IN FIDELITY HAVE QUESTIONED THE DIVERSIFICATION MOVES THIS INSIDER SAYS YOU JUST DON'T SAY NO TO NED JOHNSON INDEED SOME OF FIDELITY CAPITAL'S BUSINESSES BEGIN WITH MR JOHNSON'S YENS BOSTONCOACH A LIMOUSINE SERVICE STARTED IN 1985 AS A THREESEDAN OUTFIT AFTER NED SAID HE WASN'T HAPPY WITH WHAT HE WAS GETTING WHEN HE USED LOCAL CAR SERVICES SAYS PERRY SOLOMON PRESIDENT OF BOSTONCOACH WHICH NOW BOASTS A FLEET OF 250 CARS AND 50 BUSES THAT OPERATE IN BOSTON NEW YORK WASHINGTON AND OTHER EAST COAST CITIES SIMILARLY ADVANCED MOBILECOMM INC TWOWAY WIRELESS PAGING AND PHONE NETWORKS IN A NUMBER OF CITIES WAS STARTED IN 1987 SO BOSTONCOACH DISPATCHERS COULD CALL THEIR CARS THE COMPANY WHICH IS NOW THE COUNTRY'S THIRDLARGEST MOBILE RADIO OPERATOR SOLD ITS NEW ENGLAND OUTFIT LAST YEAR BRINGING FIDELITY A 15 MILLION PROFIT FOR ITS LATEST EXPANSION FIDELITY CONFIRMS THAT IT PLANS TO BUILD A NEW HOTEL AND PERHAPS AN OFFICE COMPLEX JUST ACROSS FROM ITS CONVENTION CENTER IN BOSTON THE 420ROOM 18STORY HOTEL WHICH IS SLATED FOR GROUNDBREAKING NEXT SPRING SHOULD COST ABOUT 90 MILLION ACCORDING TO BRIAN DACEY VICE PRESIDENT OF THE WORLD TRADE CENTER THE CONVENTION TRADE SHOW AND OFFICE COMPLEX OF WHICH FIDELITY IS THE MAJORITY OWNER WHILE FIDELITY WILL BE THE LARGEST INVESTOR MR DACEY SAYS THE COMPANY WILL SEEK PARTNERS AND FINANCING JUST LIKE ANY DEVELOPER AND IF FIDELITY CAN PRESIGN SOME OFFICE TENANTS MR DACEY SAYS IT ALSO IS PREPARED TO COMPLEMENT THE HOTEL WITH TWO OFFICE BUILDINGS EACH COSTING ABOUT 90 MILLION FIDELITY INSIDERS OFTEN SPEAK OF FIDELITY CAPITAL AS THE VENTURE CAPITAL SIDE OF THE BUSINESS SUGGESTING THAT MANY OF THE UNITS ARE BEING CREATED TO BUILD UP AND SELL OFF IN ACQUIRING AND DEVELOPING REAL ESTATE SOME INSIDERS PREDICT MR JOHNSON MAY TURN OUT TO BE A SHREWD INVESTOR PETER LYNCH THE CELEBRATED MONEY MANAGER WHO IS NOW FIDELITY'S VICE CHAIRMAN SAYS THE FIRM HAS DECIDED THAT THE REALESTATE MARKET HAS BOTTOMED AND IS PRIMED FOR A TURNAROUND WHICH MAY BE PART OF THE RATIONALE FOR THE HOTEL AND OFFICE COMPLEX BUT FIDELITY CAPITAL'S OVERALL PLAN REMAINS SOMEWHAT ENIGMATIC YOU CANNOT LIVE ON EVERYTHING YOU DID YESTERDAY MR JOHNSON SAID IN AN INTERNAL FIDELITY PUBLICATION ON THE OTHER HAND YOU CAN'T RUN OFF IN 50 DIRECTIONS AND DO NOTHING WELL THE VIABILITY OF FIDELITY CAPITAL UNITS AS STANDALONES IS HARD TO ASSESS BECAUSE OF THE OFTEN SIZABLE PORTION OF REPORTED REVENUES THAT ARE INTERNAL TRANSACTIONS IN FIDELITY CAPITAL'S SPARSE FINANCIAL STATEMENTS BOSTONCOACH IS LISTED WITH 164 MILLION IN 1992 REVENUE 12 OF WHICH ARE FIDELITY PAYMENTS FOR EMPLOYEES' USE OF THE SERVICE SAYS MR SOLOMON FIDELITY IS ALSO A MAJOR TENANT OF THE FIDELITYOWNED WORLD TRADE CENTER AND CONTRIBUTED AN ESTIMATED 40 OF THE TRADE CENTER'S 247 MILLION IN 1992 REVENUE THOUGH FIDELITY CAPITAL'S COLLECTION OF BUSINESSES ARE IN SUM UNPROFITABLE IT'S NOT FAIR TO GROUP THEM ALL TOGETHER AND LOOK AT TOTAL OPERATING LOSSES WE DON'T LOOK AT THEM THAT WAY SAYS A FIDELITY SPOKESWOMAN THESE ARE BUSINESSES WE'RE TRYING TO GROW AND MAYBE SELL ADDS AND ALONG THE WAY THEY OFTEN PROVIDE UNIQUE ADVANTAGES FOR INSTANCE TELEPORT COMMUNICATIONS BOSTON A FIBEROPTIC PHONE SYSTEM STARTED IN 1988 HAS PROVIDED FIDELITY A HUGE TELEPHONE CUSTOMER WITH AN ALTERNATIVE THAT THE COMPANY SAYS IT HAS USED TO SQUEEZE BETTER RATES FROM NEW ENGLAND TELEPHONE CO 9310140099 931014 PROMUS PACT OUTLINES 3WAY EQUITY SPLIT FOR LOUISIANA CASINO MEMPHIS TENN PROMUS COS SAID IT SIGNED A LETTER OF INTENT OUTLINING THE TERMS OF A PARTNERSHIP TO BUILD THE WORLD'S LARGEST CASINO IN NEW ORLEANS AT A COST OF 670 MILLION THE AGREEMENT CALLS FOR A THREEWAY EQUITY SPLIT BETWEEN THE HARRAH'S CASINO SUBSIDIARY OF PROMUS A LOCAL INVESTOR GROUP CALLED NEW ORLEANS LOUISIANA DEVELOPMENT CORP AND GRAND PALAIS CASINO INC A GROUP LED BY DEVELOPER CHRISTOPHER HEMMETER HARRAH'S WILL MANAGE THE DESIGN CONSTRUCTION AND OPERATION OF THE 350000SQUAREFOOT FACILITY WHICH WILL HOUSE LOUISIANA'S ONLY LANDBASED CASINO PROMUS SAID IT PLANS TO CONVERT THE NEW ORLEANS MUNICIPAL AUDITORIUM INTO A 75000SQUAREFOOT TEMPORARY CASINO THAT WOULD OPEN AS EARLY AS THE END OF FIRST QUARTER OF 1994 THE PERMANENT COMPLEX INCLUDING A 200000SQUAREFOOT CASINO ON THE SITE OF THE CITYOWNED RIVERGATE CONVENTION CENTER COULD OPEN AS EARLY AS 1995 IF ALL GOVERNMENTAL APPROVALS ARE RECEIVED ON A TIMELY BASIS PROMUS SAID THE 670 MILLION PRICE INCLUDES THE COST OF THE TEMPORARY CASINO AND NEW PARKING STRUCTURES AS WELL AS 165 MILLION IN CASH PAYMENTS TO NEW ORLEANS AND THE STATE A PROMUS SPOKESMAN SAID TERMS OF THE FINANCING HAVEN'T YET BEEN ARRANGED THE CITY HAD GRANTED THE LEASE ON THE RIVERGATE CONVENTION CENTER TO A PARTNERSHIP BETWEEN MR HEMMETER AND CAESARS WORLD INC BUT IN AUGUST STATE REGULATORS SELECTED PROMUS AND ITS PARTNERS A GROUP OF 10 LOCAL BUSINESSMEN LED BY LAWYER WENDELL GAUTHIER TO OWN AND OPERATE THE COMPLEX 9310140098 931014 FINANCING BUSINESS TOMMY HILFIGER CORP TOMMY HILFIGER CORP HONG KONG SAID IT WILL SELL 225 MILLION SHARES WHILE MAJOR SHAREHOLDER APPAREL INTERNATIONAL HOLDINGS LTD A HOLDING COMPANY BASED IN THE BRITISH VIRGIN ISLANDS WILL SELL TWO MILLION TOMMY HILFIGER A MARKETER OF MEN'S AND BOYS' SPORTSWEAR WILL USE PROCEEDS FOR DEVELOPMENT OF ITS OUTLET STORE PROGRAM OPENING NEW RETAIL STORES AND OTHER GENERAL CORPORATE PURPOSES IT SAID IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE TOMMY HILFIGER SHARES WERE OFF 175 OR 64 AT 25625 FOLLOWING THE COMPANY'S ANNOUNCEMENT THAT IT FILED FOR THE COMBINED SALES OF THE 425 MILLION SHARES APPAREL INTERNATIONAL HOLDINGS WILL OWN ABOUT 54 OF TOMMY HILFIGER SHARES OUTSTANDING FOLLOWING THE SALE OF ITS SHARES THE COMPANY ADDED 9310140097 931014 TADIRAN TO SUPPLY BATTERIES HOLON ISRAEL TADIRAN LTD SAID IT ENTERED INTO A THREEYEAR 27 MILLION AGREEMENT WITH ERICSSON GE MOBILE COMMUNICATIONS INC USA TO SUPPLY RECHARGEABLE DOUBLEA LITHIUM METAL BATTERIES FOR USE IN MOBILE CELLULAR TELEPHONES ERICSSON GE MOBILE IS A JOINT VENTURE OF LM ERICSSON TELEPHONE CO AND GENERAL ELECTRIC CO 9310140095 931014 DELTA AIR EXPECTS TO REPORT PROFIT FOR FIRST QUARTER BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL DELTA AIR LINES INC SAID IT EXPECTS TO REPORT A FISCAL FIRSTQUARTER PROFIT BUT CAUTIONED THAT CONTINUING WEAK PERFORMANCE IN EUROPE AMONG OTHER FACTORS MAY KEEP OVERALL RESULTS SLIGHTLY BELOW SOME ANALYSTS' EXPECTATIONS ALTHOUGH OFFICIALS DECLINED TO BE SPECIFIC A SPOKESMAN SAID HE WOULDN'T ARGUE WITH THE FIRSTQUARTER FORECAST BY KEVIN MURPHY AN ANALYST AT MORGAN STANLEY & CO MR MURPHY PREDICTS NET INCOME OF ABOUT 30 MILLION OR 60 CENTS A SHARE ABOUT 7 BELOW THE WALL STREET CONSENSUS THE INDUSTRY IS SET TO REPORT NET INCOME FOR THE QUARTER ENDED SEPT 30 THE FIRST QUARTERLY PROFITS THE AIRLINES HAVE PRODUCED IN TWO YEARS ANALYSTS PROJECT DELTA BASED IN ATLANTA IS ONE OF SEVERAL AIRLINES POISED TO REPORT BETTER EARNINGS LATER THIS MONTH REFLECTING RELATIVELY STABLE AIR FARES LOWER JETFUEL PRICES LAYOFFS AND SHARPLY PARED COSTS DELTA IS TURNING THE CORNER BUT IT HASN'T COMPLETED THE TURN YET MR MURPHY SAID DOMESTIC GROWTH IS GOOD BUT THAT ISN'T SO AT THEIR FRANKFURT HUB THEIR WESTERN EUROPE MARKET IS STILL IN A FUNK IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY DELTA WAS UP 875 CENTS TO 5475 IN THE YEAREARLIER FIRST QUARTER DELTA HAD A NET LOSS OF 1067 MILLION OR 264 A SHARE ON REVENUE OF 306 BILLION DELTA SAID IT EXPECTED THE PROFIT RESULT FROM AMONG OTHER THINGS CERTAIN COSTREDUCTION MEASURES SINCE MAY 1992 THE AIRLINE HAS REDUCED STAFF 77 OR 6600 JOBS EARLY THIS YEAR DELTA SLASHED ITS QUARTERLY DIVIDEND TO FIVE CENTS A SHARE FROM 30 CENTS IN ITS STATEMENT YESTERDAY DELTA ESTIMATED IT REDUCED OPERATING COSTS PER AVAILABLE SEAT MILE BY 6 IN THE FIRST QUARTER FROM THE YEARAGO PERIOD THE AIRLINE ALSO SAID ITS RECENT STRONGER PASSENGER TRAFFIC IN SEPTEMBER WILL BE PARTIALLY OFFSET BY MORE MODEST YIELD GROWTH THAN IT HAD IN THE FIRST TWO MONTHS OF THE QUARTER DELTA SAID IT EXPECTS TO REPORT EARNINGS OCT 28 9310140094 931014 WHO'S NEWS SHIFT AT 20TH CENTURY INDUSTRIES PUTS MELLICK IN TOP OPERATING POST WOODLAND HILLS CALIF WILLIAM L MELLICK WAS NAMED CHIEF OPERATING OFFICER AND EXECUTIVE VICE PRESIDENT OF 20TH CENTURY INDUSTRIES AS PART OF A SENIOR MANAGEMENT REORGANIZATION THE CHIEF OPERATING POST FORMERLY WAS HELD BY JAMES O CURLEY WHO REMAINS PRESIDENT THE EXECUTIVE VICE PRESIDENT TITLE IS NEW MR MELLICK WAS GROUP VICE PRESIDENT IN CHARGE OF OPERATIONS AND KEEPS THOSE DUTIES ALONG WITH HIS NEW RESPONSIBILITIES BOTH MEN ARE 51 YEARS OLD THE NEW STRUCTURE WHICH SPLITS THE PRESIDENT AND OPERATING OFFICER POSTS INVOLVES CHANGES IN REPORTING RELATIONSHIPS AMONG SENIOR MANAGERS MR CURLEY AND MR MELLICK ALSO WERE NAMED TO A SEVENMEMBER OPERATING COMMITTEE OF THE INSURANCE HOLDING COMPANY AFTER THE RECENT RESIGNATION OF LOUIS W FOSTER AS CHIEF EXECUTIVE OFFICER NEIL H ASHLEY WAS NAMED TO SUCCEED HIM ON A TEMPORARY BASIS WHILE THE COMPANY SEARCHES FOR A PERMANENT REPLACEMENT WE HAVEN'T ESTABLISHED A TIME TABLE FOR THE SEARCH WHICH IS CONTINUING A SPOKESMAN SAID 9310140093 931014 BUSINESS BRIEF FORD DELAYS SIGNING OF PACT UAW SEEKS TO MOVE SHUTDOWN DEARBORN MICH FORD MOTOR CO SAID IT WAS FORCED TO DELAY THE SCHEDULED SIGNING OF ITS NEW LABOR AGREEMENT YESTERDAY WITH THE UNITED AUTO WORKERS AFTER A LATE DEMAND FROM THE UNION THAT FORD SWITCH THE DATE OF ITS ANNUAL SUMMER SHUTDOWN FORD IS RELUCTANT TO MOVE THE DATE OF ITS ANNUAL SHUTDOWN WHICH NORMALLY OCCURS IN THE FIRST TWO WEEKS OF JULY BECAUSE IT COULD INCREASE ITS COSTS AND DELAY PRODUCTION OF NEW MODELS A COMPANY SPOKESMAN SAID IT'S NOT A SIMPLE DECISION TO MOVE THE VACATION SHUTDOWN HE SAID IN THE TENTATIVE LABOR PACT FORD AGREED TO GIVE ITS WORKERS AN ADDITIONAL HOLIDAY IN BOTH 1995 AND 1996 MAKING JULY 4 A FOURDAY WEEKEND BOTH YEARS THE SHUTDOWN NORMALLY INCLUDES THE JULY 4 WEEKEND AND THE UNION WANTS FORD TO DELAY THE SHUTDOWN BY ONE WEEK SO THE JULY 4 WEEKEND WILL BE A SEPARATE BREAK DURING THE TWOWEEK SHUTDOWN VIRTUALLY ALL FORD PLANTS ARE CLOSED AND UAW MEMBERS TAKE THEIR VACATIONS THEN AS PART OF AN AGREEMENT BETWEEN FORD AND THE UNION THE NEW FORDUAW CONTRACT HAS ALREADY BEEN RATIFIED BY THE UNION'S RANK AND FILE AND NEITHER SIDE IS SAYING THE DISPUTE OVER THE SUMMER SHUTDOWN IS A DEAL BREAKER A FORD SPOKESMAN SAID HE DIDN'T KNOW HOW LONG IT WOULD TAKE THE COMPANY AND THE UAW TO RESOLVE THIS SNAG HOWEVER HE EMPHASIZED THAT THE TWO SIDES STILL HAVE A LABOR AGREEMENT AND THE COMPANY IS PREPARING TO IMPLEMENT IT 9310140092 931014 BUSINESS BRIEF PYRAMID BROADCASTING OPERATOR OF RADIO STATIONS ARRANGES FOR RECAPITALIZATION PYRAMID BROADCASTING A CLOSELY HELD OPERATOR OF RADIO STATIONS SAID IT HAS ARRANGED FOR A 125 MILLION RECAPITALIZATION THAT WILL ENABLE IT TO PURCHASE ADDITIONAL RADIO STATIONS NATIONWIDE PYRAMID WHICH OPERATES NINE RADIO STATIONS IN SIX MAJOR CITIES INCLUDING WXKS IN BOSTON AND WYXR IN PHILADELPHIA SAID VESTAR EQUITY PARTNERS LP OF NEW YORK HAS AGREED TO INVEST ABOUT 20 MILLION IN EQUITY IN PYRAMID AND SECURE ABOUT 105 MILLION IN FINANCING FOR PYRAMID'S EXPANSION IN RETURN VESTAR WILL OWN A SUBSTANTIAL PIECE OF BOSTONBASED PYRAMID SAID KEN O'KEEFE PYRAMID'S CHIEF FINANCIAL OFFICER PYRAMID WHICH RECENTLY AGREED TO PURCHASE TWO STATIONS IN CHARLOTTE NC SAID ITS FUTURE ACQUISITIONS WILL PRIMARILY BE IN ITS CURRENT MARKETS OF BOSTON PHILADELPHIA ROCHESTER AND BUFFALO NY CHICAGO AND CHARLOTTE VESTAR EQUITY IS A PRIVATE INVESTMENT FUND MANAGED BY VESTAR CAPITAL PARTNERS 9310140091 931014 INTERNATIONAL PAPANDREOU DROPS PREDECESSOR'S PLANS FOR PRIVATIZATION BY JENNY PARIS SPECIAL TO THE WALL STREET JOURNAL ATHENS GREECE'S NEWLY ELECTED SOCIALIST PRIME MINISTER ANDREAS PAPANDREOU ANNOUNCED PLANS TO CANCEL MAJOR PRIVATIZATION PROJECTS STARTED BY THE PREVIOUS CONSERVATIVE ADMINISTRATION WE WILL MOVE RAPIDLY TO ABOLISH THE SHORTLIVED LAW FOR THE PRIVATIZATION OF THE TELEPHONE COMPANY AND THE PRIVATIZATION OF THE PUBLIC TRANSPORT COMPANY THE 74YEAROLD MR PAPANDREOU SAID AFTER A SWEARING IN CEREMONY AT THE PRESIDENTIAL PALACE MR PAPANDREOU HAD STRONGLY OPPOSED CONSERVATIVES' PLANS TO SELL 35 OF THE HELLENIC TELECOMMUNICATIONS ORGANIZATION OR OTE AND TURN OVER ITS MANAGEMENT TO A FOREIGN OPERATOR SIX INTERNATIONAL OPERATORS INCLUDING JAPAN'S NIPPON TELEGRAPH & TELEPHONE CORP AND GTE CORP OF THE US HAD BEEN EXPECTED TO SUBMIT BIDS FOR THE OTE STAKE THIS MONTH THE CANCELLATION OF THE PROJECT WILL DEPRIVE THE GREEK STATE OF AN ESTIMATED 15 BILLION FROM THE SALE ANALYSTS DOUBTED HOWEVER THAT MR PAPANDREOU WOULD RUSH TO REALIZE HIS VERBAL THREATS AND PREDICTED THAT HE WOULD PROCEED WITH PRIVATIZATIONS IN A DIFFERENT FORM I BELIEVE THAT MR PAPANDREOU WILL SIMPLY START A DIFFERENT PROCEDURE FOR OTE'S PRIVATIZATION PROBABLY THROUGH THE STOCK EXCHANGE SAID PHAEDON HATZISAVVAS A FINANCIAL CONSULTANT WITH COOPERS & LYBRAND MR PAPANDREOU HAS INDICATED HE IS PREPARED TO SELL STAKES OF AS MUCH AS 49 IN STATEOWNED COMPANIES THROUGH STOCK OFFERINGS AND BRING IN PRIVATE SECTOR MANAGERS AS CONSULTANTS IN THE COMPANIES THE PRIVATIZATION OF THE TRANSPORT COMPANY IN THE SUMMER OF 1992 PERSONALLY HANDLED BY FORMER CONSERVATIVE PRIME MINISTER CONSTANTINE MITSOTAKIS HAD PROMPTED A PUBLIC OUTCRY WHEN 8000 BUS DRIVERS WERE FIRED ALTHOUGH MR PAPANDREOU'S STATEMENTS INDICATE LITTLE CHANGE FROM HIS PAST SOCIALIST POLICIES HIS CHOICE OF MINISTERS HAS BEEN WELCOMED BY THE BUSINESS COMMUNITY AND FOREIGN DIPLOMATS STOCKS ON THE ATHENS STOCK EXCHANGE ROSE 29 WEDNESDAY AFTER GEORGE YENNIMATAS AND COSTAS SIMITIS TWO OF THE MOST RESPECTED MEMBERS OF THE SOCIALIST PARTY WERE APPOINTED ECONOMY MINISTER AND INDUSTRY MINISTER RESPECTIVELY THEIR APPOINTMENT IS A SIGN OF SERIOUSNESS MR HATZISAVVAS SAID IT IS POSITIVE THAT PEOPLE WITH EXPERIENCE WHO HAVE BEEN TRIED IN THE PAST WERE PUT IN THESE POSTS AND A SIGN THAT THEY WILL NOT EXPERIMENT WITH THE ECONOMY EUROPEAN OFFICIALS ARE MORE FAMILIAR WITH MR SIMITIS WHO AS INDUSTRY MINISTER WILL DETERMINE THE FUTURE OF PLANNED PRIVATIZATION PROJECTS FOR THE STATE REFINERIES AND SHIPYARDS MR YENNIMATAS MUST PREPARE IN ONE MONTH THE STATE BUDGET FOR 1994 KEEPING IN MIND THAT CANCELLATION OF THE PRIVATIZATIONS WILL PUSH 1993'S DEFICIT OVER 13 OF GDP HE MUST ALSO PLAN NEXT YEAR'S WAGE POLICY FOR PUBLIC SECTOR EMPLOYEES WHO HAVE BEEN HIT HARD BY THREE AND A HALF YEARS OF AUSTERITY MEANWHILE INFLATION IS RUNNING AT 128 9310140090 931014 ECONOMY OPPOSITION LIBERAL PARTY OF CANADA APPEARS LIKELY TO WIN OCT 25 ELECTION BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA'S OPPOSITION LIBERAL PARTY WHICH WANTS TO RENEGOTIATE THE NORTH AMERICAN FREE TRADE AGREEMENT APPEARS LIKELY TO WIN THE COUNTRY'S ELECTION OCT 25 POLITICAL ANALYSTS SAY AUDREY MCLAUGHLIN LEADER OF THE NEW DEMOCRATIC PARTY TOLD REPORTERS THAT HER PARTY'S POLLS INDICATE THE LIBERALS WILL WIN A MAJORITY OF THE 295 SEATS IN THE HOUSE OF COMMONS THE COUNTRY HAS BEEN GOVERNED SINCE 1984 BY THE PROGRESSIVE CONSERVATIVE PARTY CURRENTLY LED BY KIM CAMPBELL WHO IN JUNE SUCCEEDED BRIAN MULRONEY AS CONSERVATIVE LEADER AND PRIME MINISTER UNTIL RECENT DAYS IT APPEARED THAT NO PARTY HAD SUFFICIENT SUPPORT TO WIN A MAJORITY OF SEATS IF THE LIBERALS DO ACHIEVE THE FEAT THEY WILL BE ABLE TO GOVERN WITHOUT HAVING TO BARGAIN FOR THE SUPPORT OF OTHER PARTIES INCLUDING MS MCLAUGHLIN'S LEFTWING NDP FROM THE PERSPECT THE FINANCIAL MARKETS A MAJORITY GOVERNMENT IS FAR BETTER THAN THE ALTERNATIVES SAID TED CARMICHAEL SENIOR ECONOMIST AT BURNS FRY LTD A TORONTO SECURITIES COMPANY THE CANADIAN DOLLAR RESPONDING TO THE POLITICAL NEWS CLOSED IN TORONTO AT 7528 US CENTS ITS HIGHEST LEVEL IN TWO WEEKS CANADIAN STOCK PRICES ALSO ROSE YESTERDAY THE LIBERALS LED BY JEAN CHRETIEN HAVE PROPOSED TO NEGOTIATE SEVERAL CHANGES TO NAFTA INCLUDING A COMMON CODE THAT WOULD DEFINE A PERMISSIBLE SUBSIDY THE GREAT FLAW IN NAFTA THE BLACK HOLE AT ITS CENTER IS THE CONTINUING ABSENCE OF A COMMON SET OF TRADING RULES AND PROCEDURES SAID ROY MACLAREN THE PARTY'S SPOKESMAN ON TRADE ISSUES NAFTA ALSO FACES A CHALLENGE FROM THE ONTARIO GOVERNMENT THE GOVERNMENT SAID YESTERDAY THAT IT BELIEVES THE FEDERAL GOVERNMENT EXCEEDED ITS JURISDICTION IN SIGNING THE AGREEMENT AND ANNOUNCED THAT IT WILL ASK THE ONTARIO COURT OF APPEAL TO RULE ON THE TRADE PACT'S LEGALITY NAFTA HAS BEEN OVERSHADOWED IN THE ELECTION CAMPAIGN BY OTHER ISSUES INCLUDING THE FEDERAL GOVERNMENT'S BIG BUDGET DEFICIT WHICH IS EXPECTED TO EXCEED 33 BILLION CANADIAN DOLLARS US248 BILLION THIS YEAR THE LIBERALS HAVE PROPOSED TO REDUCE THE DEFICIT TO 3 OF GROSS DOMESTIC PRODUCT WITHIN THREE YEARS FROM THE 52 LEVEL LAST YEAR GDP IS THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN A NATION PRIME MINISTER CAMPBELL HAS PROPOSED ELIMINATING THE DEFICIT WITHIN FIVE YEARS BUT HER PLAN HAS BEEN WIDELY CRITICIZED FOR BEING TOO SKETCHY THE CONSERVATIVES HAVE LOST GROUND IN THE CAMPAIGN TO TWO REGIONAL PARTIES THE RIGHTWING REFORM PARTY IN WESTERN CANADA AND THE BLOC QUEBECOIS IN QUEBEC SOME ANALYSTS PREDICT THAT THE REFORM PARTY OR BLOC QUEBECOIS MAY WIN THE SECONDLARGEST NUMBER OF HOUSE OF COMMONS SEATS AFTER THE LIBERALS THE BLOC QUEBECOIS PROPOSES QUEBEC'S SEPARATION FROM CANADA 9310140089 931014 BUSINESS BRIEF HEILIGMEYERS CO FURNITURE RETAILER TO ACQUIRE SOME ASSETS OF MCMAHAN'S HEILIGMEYERS CO SAID IT SIGNED A LETTER OF INTENT TO PURCHASE CERTAIN ASSETS AND A SPECIALTY INSURANCE OPERATION FROM MCMAHAN'S FURNITURE CO CARLSBAD CALIF FOR ABOUT 65 MILLION IN CASH PLUS NET OF ACCOUNTS RECEIVABLE AND REAL ESTATE HEILIGMEYERS A RICHMOND VA HOME FURNISHING RETAILER SAID THE PURCHASE WOULD INCLUDE ASSETS FROM 92 MCMAHAN STORES MOST OF THEM IN CALIFORNIA THE ACQUISITION SUBJECT TO CERTAIN CONDITIONS IS SCHEDULED TO CLOSE IN JANUARY HEILIGMEYERS SAID THE MCMAHAN REAL ESTATE ASSOCIATED WITH THE STORES WILL BE SOLD TO ANOTHER COMPANY WITH THE INTENT OF HEILIGMEYERS' LEASING IT BACK FROM THAT COMPANY 9310140088 931014 POLITICS & POLICY NEW YORK MAYORAL CANDIDATES TRY TO OVERHAUL IMAGES WITH VOTERS WHO KNOW THEM TOO WELL BY HEIDI EVANS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ROSS PEROT LEARNED RECENTLY THAT REPUBLICAN MAYORAL CANDIDATE RUDOLPH GIULIANI HAS A FEISTY 84YEAROLD MOTHER WHO LIVES IN THE SAME APARTMENT BUILDING AS HER SON PUT HER IN A COMMERCIAL THE TEXAS BILLIONAIRE URGED THE PUBLIC SHOULD KNOW YOU HAVE A MOTHER IT MAKES YOU LOOK HUMAN LOOKING HUMAN IS JUST ONE OF MR GIULIANI'S TASKS AS HE SEEKS TO BECOME THIS CITY'S FIRST GOP MAYOR IN ALMOST THREE DECADES IN A MULTICULTURAL METROPOLIS THAT LIKES TO BE ON A FIRSTNAME BASIS WITH ITS POLITICIANS THE 49YEAROLD FORMER FEDERAL PROSECUTOR IS TRYING HARD NOT TO COME ACROSS AS WHAT HE SEEMS TO BE A TIGHTLY WOUND SHORTTEMPERED LAWANDORDER MAN WITH SOME CRITICS UNKINDLY SUGGEST THE PERSONALITY OF A TRAFFIC COP BUT MR GIULIANI WHO ALMOST PARLAYED HIS RECORD OF PROSECUTING MAFIA DONS AND WHITECOLLAR CRIMINALS INTO THE MAYORALTY IN 1989 ISN'T THE ONLY CANDIDATE TRYING TO RUN AWAY FROM HIMSELF NO LESS IN NEED OF AN IMAGE OVERHAUL IS DEMOCRATIC MAYOR DAVID DINKINS THE CITY'S FIRST BLACK MAYOR WHO SEEKS TO AVOID BECOMING ITS FIRST DEFEATED BLACK MAYOR THE 66YEAROLD MR DINKINS WHO IS OFTEN SEEN IN A TUXEDO AND WHO RELISHES THE CEREMONIAL ASPECTS OF HIS JOB IS TRYING TO GLOSS OVER A LACKLUSTER RECORD WHILE SURROGATES PLAY THE RACE CARD TO CLOUD THE ACCOUITY ISSUE IN A RECENT APPEARANCE HERE PRESIDENT CLINTON SUGGESTED THAT RACE MAY BE MOTIVATING PEOPLE TO VOTE AGAINST MR DINKINS WITH LESS THAN THREE WEEKS TO GO THE CAMPAIGN IS CONSIDERED CLOSE IN A RECENT SURVEY BY WCBSTV AND THE NEW YORK TIMES ONE IN THREE GIULIANI SUPPORTERS SAID THEY STILL MIGHT SWITCH TO MR DINKINS BEFORE ELECTION DAY WHILE ONE IN FOUR OF THE MAYOR'S SUPPORTERS SAID THEY MIGHT YET JUMP TO MR GIULIANI IN THE CLOSING DAYS OF THE CAMPAIGN CIVIC ISSUES HAVE LARGELY TAKEN A BACK SEAT TO SANDBOX POLITICS AS ATTACKS AND COUNTERATTACKS FLY OVER ABORTION GROUND RULES FOR POSSIBLE DEBATES AND NATION OF ISLAM LEADER LOUIS FARRAKHAN'S PLANNED YANKEE STADIUM RALLY THREE DAYS BEFORE THE ELECTION THE ELECTION MAY COME TO RESEMBLE A FOOD FIGHT IN THE CAFETERIA BEFORE IT'S OVER SAYS LEE MIRINGOFF DIRECTOR OF THE MARIST INSTITUTE FOR PUBLIC OPINION IN POUGHKEEPSIE NY FOR BOTH CANDIDATES THE MAIN PROBLEM MAY BE NOT THAT THE VOTERS DON'T KNOW THEM BUT THAT THEY KNOW THEM ALL TOO WELL IT'S SAD THAT IN A CITY OF 75 MILLION PEOPLE THERE AREN'T MORE CHOICES TO PICK FROM SAYS FORMER THREETERM MAYOR ED KOCH WHO LOST TO MR DINKINS IN THE 1989 DEMOCRATIC PRIMARY WE HAVE A CHOICE BETWEEN A STIFF STOLID TECHNOCRAT WHO WILL PROBABLY RUN A COMPETENT AND HONEST GOVERNMENT OR DINKINS WHO GREETS YOU WITH HI BUDDY' IS A REAL SCHMOOZER BUT WHO'S INCOMPETENT THE REMATCH IS BEING WATCHED ON A NATIONAL LEVEL BY BOTH POLITICAL PARTIES AS A TEST OF WHETHER A REPUBLICAN CAN DO WELL IN A CITY WHERE DEMOCRATS OUTNUMBER REPUBLICANS FIVE TO ONE THE RELEVANCE BEYOND NEW YORK IS MAGNIFIED BY THE RECENT MAYORAL VICTORY OF REPUBLICAN RICHARD RIORDAN IN LOS ANGELES THE LAST THING THAT PRESIDENT CLINTON NEEDS IS A REPUBLICAN MAYOR IN BOTH LOS ANGELES AND NEW YORK ESPECIALLY WHEN HE STARTS TO CAMPAIGN FOR HIS OWN REELECTION IN 1996 SAYS MITCHELL MOSS A PROFESSOR OF URBAN PLANNING AT NEW YORK UNIVERSITY AND AN UNPAID ADVISER TO MR DINKINS THE WHITE HOUSE HAS PROVIDED SEVERAL BIGWIGS TO STUMP FOR THE MAYOR INCLUDING HILLARY RODHAM CLINTON THE STAR ATTRACTION AT A WOMEN FOR DINKINS FUNDRAISING EVENT TODAY FOUR YEARS AGO MR DINKINS WAS ELECTED AS A CONCILIATOR WHO COULD BRING THE CITY TOGETHER AFTER THE FRACTIOUS POLARIZING FINAL YEARS OF MR KOCH'S REIGN HE FINDS HIMSELF PRESIDING OVER A CITY THAT HAS LOST ALMOST 400000 JOBS SINCE HE TOOK OFFICE WITH AN ELECTORATE MORE POLARIZED AND ANGRY OVER CRIME HOMELESSNESS HIGH TAXES AND A DETERIORATING QUALITY OF LIFE THERE IS ALSO THE HOST OF MEDIOCRE APPOINTMENTS MAYOR DINKINS HAS MADE TO RUN THE CITY'S 31 BILLION BUREAUCRACY AT LEAST A HALF DOZEN OF HIS KEY COMMISSIONERS INCLUDING THE HEADS OF THE HEALTH DEPARTMENT THE MUNICIPAL HOSPITAL SYSTEM THE HOUSING AUTHORITY AND BUDGET OFFICE HAVE EITHER QUIT WITH UNDISTINGUISHED TRACK RECORDS OR WERE FORCED TO RESIGN UNDER A CLOUD AND HE WAS ALSO HURT BY A STATE REPORT THAT PORTRAYED HIM AS ASLEEP AT THE SWITCH DURING A RIOT IN CROWN HEIGHTS BROOKLYN WITH SUCH A BLEAK PRESENT IT ISN'T SURPRISING THAT MR DINKINS EMPHASIZES THE FUTURE ON THE CAMPAIGN TRAIL HE PROMISES TO PUT MORE COPS ON THE STREETS AND EXPAND COMMUNITY HEALTH CARE AND HAS INTRODUCED AN ECONOMIC DEVELOPMENT PLAN HE SAYS COULD BRING 110000 JOBS TO NEW YORK BUT JOHN MOLLENKOPF A PROFESSOR OF POLITICAL SCIENCE AT THE CITY UNIVERSITY OF NEW YORK GRADUATE CENTER AND THE AUTHOR OF A BOOK ABOUT URBAN POLITICAL POWER IN NEW YORK SAYS THE MAYOR HASN'T BEEN ABLE TO GAIN A LOT OF GROUND ANYWHERE AND HE'S LOST SOME IN THE CONSTITUENCIES THAT WERE HIS SUPPORTERS IN 1989 WHEN HE WON BY TWO PERCENTAGE POINTS KEY AMONG THEM ARE HISPANICS AND WHITE LIBERALS FOUR YEARS AGO 70 OF HISPANIC VOTERS SUPPORTED MR DINKINS THE LATEST POLLS SHOW HIM DOWN TO 48 THE MAYOR HAS ALSO LOST SUPPORT AMONG JEWISH VOTERS HE WON 35 OF THEIR VOTES IN 1989 BUT HAS ONLY 23 SUPPORT NOW OVERALL ALTHOUGH NINE IN 10 BLACK VOTERS SAY THEY INTEND TO VOTE FOR HIM ONLY ONE IN FIVE WHITES DO MANY REMAIN UNDECIDED TO LURE THOSE UNDECIDED VOTERS MR GIULIANI OFFERS A MESSAGE DESIGNED TO APPEAL TO THE MIDDLE CLASS PROMISING TO MAKE THE CITY SAFER AND MORE EFFICIENT WORLDWEARY NEW YORKERS HAVE HEARD THAT ONE BEFORE BUT MR GIULIANI HAS SOME NEW WRINKLES FOR EXAMPLE HE SAYS THAT AS MAYOR HE WOULD EXPLORE CONTRACTING OUT THE AIRPORTS AND SOME CITY HOSPITALS TO THE PRIVATE SECTOR HE ALSO VOWS TO CUT THE MUNICIPAL WORK FORCE BY 35000 JOBS ALTHOUGH HE IS HARDPRESSED TO EXPLAIN HOW SUCH CUTS WON'T AFFECT SERVICES HE HAS ALSO PLEDGED TO CRACK DOWN ON HOMELESS PEOPLE WHO HARRASS THE PUBLIC AND ANNOUNCED A PLAN TO KICK THEM OUT OF SHELTERS AFTER 90 DAYS BUT DESPITE HAVING HIRED VETERAN NEW YORK POLITICAL CONSULTANT DAVID GARTH TO REPACKAGE HIM AS A KINDER GENTLER RUDY QUESTIONS REMAIN ABOUT WHETHER HE HAS THE TEMPERAMENT AND VISION FOR THE JOB EVEN HIS MOTHER WHO STILL COMES TO HIS APARTMENT EVERY MORNING TO FIX HIS BREAKFAST IS FRUSTRATED RUDY IS A GOOD PERSON HE LOVES PEOPLE HE WANTS THINGS TO BE NICE FOR EVERYBODY SAYS HELEN GIULIANI WHY DO THEY MAKE HIM OUT LIKE HE'S A STIFF 9310140086 931014 NOW THE UN SHOULD HELP ISRAEL BY MORRIS B ABRAM LAST MONTH'S AGREEMENT BETWEEN ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION IS A GIANT STEP TOWARD A MIDDLE EAST PEACE BUT EUPHORIA MUST NOT BLIND US TO THE REALITIES EXCEPT FOR EGYPT ALL THE NEIGHBORING ARAB STATES REMAIN AT WAR WITH ISRAEL STILL FORMALLY PLEDGED TO A 1967 KHARTOUM DECLARATION THAT PROMISED NO RECOGNITION NO NEGOTIATION NO PEACE AND THE RULER OF ISRAEL'S PRINCIPAL ADJOINING STATE SYRIA'S HAFEZ ASSAD HAS DECLARED THAT THE RABINARAFAT AGREEMENT WAS DONE TO THE DETRIMENT OF THE ARABS MR ASSAD DOES NOT HAVE TO CONSULT WITH A REPRESENTATIVE PARLIAMENT IN DECIDING ON PEACE OR WAR NOR ARE ANY OF ISRAEL'S NEIGHBORS DEMOCRACIES THIS FACT HAS CRUCIAL SIGNIFICANCE IN THE HISTORY OF THIS TURBULENT CENTURY IN WHICH MORE THAN 30 MILLION PEOPLE HAVE BEEN KILLED IN WAR NEVER HAS ONE TRULY DEMOCRATIC COUNTRY WAGED WAR AGAINST ANOTHER TRULY DEMOCRATIC COUNTRY IN THE LONG TERM AN INCREASE IN THE NUMBER OF DEMOCRACIES WHO TRADE RATHER THAN WAGE WAR WITH THEIR NEIGHBORS IS THE KEY TO PEACE BUT UNDER PRESENT CIRCUMSTANCES A JUST AND LASTING PEACE IN THE MIDDLE EAST CANNOT AWAIT THE SPREAD OF DEMOCRATIC GOVERNMENT TO THE AREA THE INSTABILITY AND VOLATILITY OF AUTHORITARIAN REGIMES SOME NOW THREATENED BY EVEN MORE PROTEAN FUNDAMENTALIST MOVEMENTS MAKE STRONG INTERNATIONAL SUPPORT OF THE PEACE PROCESS AN ABSOLUTE NECESSITY ISRAEL IS EXPECTED TO MAKE CONCESSIONS OF LAND FOR PEACE THAT CAN HAPPEN ONLY WHEN THE ARAB STATES ARE PREPARED TO GIVE IN RETURN REAL AND ENDURING PEACE FOR LAND THE ISRAELI PEOPLE WHO RULE THEIR LEADERS WILL BE GREATLY INFLUENCED BY TANGIBLE INTERNATIONAL SECURITY GUARANTEES AND PERHAPS EVEN MORE BY THE ATMOSPHERE IN INTERNATIONAL BODIES ESPECIALLY THE UNITED NATIONS GIVEN THE RECENT LACK OF WESTERN RESOLVE TO PREVENT OR HALT THE MASS MURDERS RAPE AND MAYHEM IN THE FORMER YUGOSLAVIA ISRAEL WILL BE EXTREMELY SENSITIVE TO THE MOOD OF STATES EXPRESSED IN UN FORUMS FOR YEARS THE UN HAS BEEN A FORUM OF INSTITUTIONALIZED SYSTEMATIC AND CONTINUOUS CONDEMNATIONS OF ISRAEL MAKING PEACE NEGOTIATIONS UNDER UN AUSPICES INCONCEIVABLE AS FORMER US AMBASSADOR TO THE UN JEANE KIRKPATRICK HAS PUT IT ISRAEL IS STILL THE SUBJECT OF SPECIAL COMMITTEES SPECIAL SEMINARS SPECIAL INTERPRETATIONS AND MADE THE OBJECT OF SPECIAL DEMANDS AND SPECIAL DANGERS IN UN BODIES IT IS STILL POSSIBLE TO MOBILIZE A MAJORITY AGAINST THE STATE OF ISRAEL ON ALMOST ANY PRETEXT THIS CULTURE MUST CHANGE IF THE THREE MILLION PEOPLE OF ISRAEL ARE EXPECTED TO TAKE GREAT RISKS FOR PEACE IN AN AREA OF HUNDREDS OF MILLIONS WHO HAVE TRADITIONALLY REJECTED ISRAEL'S VERY PRESENCE THE MOTTO OF THE NEW UN APPROACH SHOULD BE THE FOUR R'S RESCIND REFORM RETIRE AND REAPPORTION RESCIND THE HUNDREDS OF ONESIDED ANTIISRAEL AND ANTIZIONIST RESOLUTIONS STILL ON THE UN BOOKS UN MEMBERS WOULD BE SPURRED TO DO THIS IF ARAB STATES JOINED HOWEVER THE ARAB REFUSAL TO END THE ECONOMIC BOYCOTT OF ISRAEL FOLLOWING THE RABINARAFAT HANDSHAKE IS NOT A GOOD OMEN REFORM THE GROUP SYSTEM SO THAT ISRAEL CAN TAKE AN EQUAL PLACE IN UN BODIES AS THE UN CHARTER GUARANTEES UNDER THE GROUP SYSTEM ANY SIGNIFICANT ROLE OR OFFICE IN THE UN DEPENDS ON SROTATION IN A NATION'S GEOGRAPHICAL OR GROUP SETTING AS ISRAEL IS DELIBERATELY EXCLUDED FROM ITS GEOGRAPHICAL GROUP AND NOT AS ARE OTHER DISTANT DEMOCRACIES SUCH AS AUSTRALIA AND NEW ZEALAND AND FOR SOME PURPOSES JAPAN INCLUDED IN THE WESTERN GROUP ISRAEL IS DENIED AN EFFECTIVE UN ROLE RETIRE THE TWO SPECIAL COMMITTEES OF THE GENERAL ASSEMBLY AND SECTIONS OF THE UN SECRETARIAT DEVOTED TO ANTIISRAEL PROPAGANDA RETIRE TOO THE SPECIAL ANNUAL MEETINGS AND SESSIONS OF VARIOUS UN BODIES THAT ROUTINELY LAMBASTE ISRAEL REAPPORTION THE MILLIONS OF DOLLARS THE FINANCIALLY STRAPPED UN SPENDS ON THESE OBSOLETE ROADBLOCKS TO TRUST AND UNDERSTANDING USE THE SAVED FUNDS FOR TRAINING PALESTINIAN POLICE AND COURT OFFICIALS AND FOR BUILDING DEMOCRATIC INSTITUTIONS OPERATING UNDER THE RULE OF LAW THESE IN TURN WILL ADVANCE THE FAVORABLE CONDITIONS FOR THE GOAL EXPRESSED BY ISRAELI FOREIGN MINISTER SHIMON PERES TO TRANSFORM THE MIDDLE EAST FROM A BATTLEGROUND TO A MARKETPLACE THE PEACE TREATY BETWEEN EGYPT AND ISRAEL AND THE BREAKTHROUGH OF THE ISRAELIPLO ACCORD DEMONSTRATE THAT AS ISRAEL AND THE US HAVE LONG CONTENDED PEACE CAN BE NEGOTIATED BETWEEN THE PARTIES ONLY IN FACETOFACE NEGOTIATIONS STILL THE UN HAS A ROLE TO PLAY IF IT BECOMES TRULY OBJECTIVE POSITIVE PROOF WOULD BE THE REMOVAL OF THE OBSTACLES AND DISTRUST THAT HAVE ACCUMULATED THROUGH YEARS OF UNBALANCED ONESIDED RESOLUTIONS AND OPERATIONS MR ABRAM FORMER AMBASSADOR TO THE EUROPEAN OFFICES OF THE UN IS CHAIRMAN OF UN WATCH A PRIVATE MONITOR OF THE UN IN GENEVA 9310140085 931014 WHO'S NEWS INDRESCO INC DIRECTOR IS TO SUCCEED YTTERBERG AS CEO AND CHAIRMAN DALLAS INDRESCO INC SAID IT NAMED JL JACKSON AN OUTSIDE DIRECTOR TO THE NEWLY CREATED POSITION OF VICE CHAIRMAN HE ALSO WAS NAMED CHIEF EXECUTIVE OFFICER SUCCEEDING RW YTTERBERG WHO PLANS TO RETIRE DEC 31 MR YTTERBERG REMAINS CHAIRMAN UNTIL HIS RETIREMENT AND IS TO BE SUCCEEDED IN THAT JOB ALSO BY MR JACKSON THE MAKER OF MINING AND CONSTRUCTION EQUIPMENT SAID INDRESCO DIRECTORS HAD ASKED MR YTTERBERG 66 YEARS OLD TO REMAIN ON THE JOB PAST THE COMPANY'S NORMAL RETIREMENT AGE OF 65 MR JACKSON 61 WAS PRESIDENT AND CHIEF OPERATING OFFICER OF DIAMOND SHAMROCK CORP DALLAS WHERE HE RETIRED IN 1987 9310140084 931014 BUSINESS BRIEF QUAKER STATE CORP VERDICT RISES TO 217 MILLION AGAINST INSURANCE SUBSIDIARY AN ORANGE COUNTY CALIF JUDGE UPHELD A 193 MILLION JURY VERDICT RENDERED ON JULY 30 AGAINST HERITAGE LIFE INSURANCE CO A SUBSIDIARY OF QUAKER STATE CORP THE JUDGE INCREASED THE AWARD TO 217 MILLION TO REFLECT CONTRACTUAL INTEREST DUE TO THE PLAINTIFF WESCAL CREDIT INSURANCE A PARTNERSHIP BASED IN AGORUA HILLS CALIF THE JUDGE DENIED HERITAGE'S MOTIONS FOR A NEW TRIAL QUAKER STATE BASED IN OIL CITY PA SAID IT WOULD VIGOROUSLY APPEAL THE VERDICT TO THE APPELLATE COURT WESCAL'S SUIT CLAIMED THAT HERITAGE LIFE INSURANCE BREACHED A CONTRACT IN 1984 TO DEVELOP AND MARKET INSURANCE IN CONNECTION WITH LONGTERM REAL ESTATE LOANS 9310140083 931014 BUSINESS BRIEF OCCIDENTAL PETROLEUM CORP SUBSIDIARY TO PAY 20 MILLION FOR CHEMICAL WASTE CLEANUP THE NEW YORK STATE ATTORNEY GENERAL'S OFFICE SAID OCCIDENTAL CHEMICAL CORP A UNIT OF LOS ANGELESBASED OCCIDENTAL PETROLEUM CORP AGREED TO PAY AS MUCH AS 20 MILLION TO CLEAN UP CHEMICAL WASTES IN UPSTATE NEW YORK THE SETTLEMENT STEMS FROM A 1983 LAWSUIT BROUGHT BY THE STATE AGAINST OCCIDENTAL FOR CHEMICAL WASTE DUMPING AND CONTAMINATION AT THE COMPANY'S DUREZ FACILITY IN NORTH TONAWANDA NY AN OCCIDENTAL CHEMICAL SPOKESMAN IN NIAGARA FALLS NY SAID THE COMPANY AGREED TO REMOVE CONTAMINATED SEDIMENT THEN TREAT AND STORE IT UNTIL IT CAN BE INCINERATED THE COMPANY ADDED THAT THE CLEANUP BEGAN ABOUT A MONTH AGO AND THE COSTS ASSOCIATED WITH THE EFFORT HAVE ALREADY BEEN ACCOUNTED FOR THE SETTLEMENT MARKS THE THIRD IN A SERIES OF STEPS BEGUN IN 1989 TO CLEAN UP THE SITES IN QUESTION THE PREVIOUS TWO STEPS COST A TOTAL OF ABOUT 17 MILLION THE AGREEMENT CALLS FOR OCCIDENTAL TO EXCAVATE AND REMOVE WASTE FROM THE CONTAMINATED SECTIONS THE COMPANY ALSO MUST RESTORE CERTAIN AQUATIC ENVIRONMENTS 9310140082 931014 IN RUSH TO BUY SHARES OF TCI' INVESTORS TRIP OVER STOCK SYMBOLS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LOVE THOSE SMALL INVESTORS WITH NEWS OF THE POTENTIAL MERGER BETWEEN BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC SPLASHED ACROSS THE FRONT PAGES OF NEWSPAPERS NATIONWIDE YESTERDAY HORDES OF RETAIL INVESTORS BESIEGED BROKERS WITH BUY ORDERS FOR TCI TROUBLE IS TCI IS THE STOCK SYMBOL FOR TRANSCONTINENTAL REALTY INVESTORS BROKERS DULY PLACED THE ORDERS AND TRANSCONTINENTAL'S SHARES SOARED CLIMBING TO 17875 FROM 1550 IN MINUTES THEN THE NEW YORK STOCK EXCHANGE CAUGHT ON IT HALTED TRADING IN THE ISSUE AND SENT AN ADVISORY TO MEMBER FIRMS AT 1027 AM HEADED WARNING OF COURSE TELECOMMUNICATIONS' STOCK ITS OVERTHECOUNTER SYMBOL IS TCOMA DREW THE ATTENTION OF MORE ANALYTICAL INVESTORS AND CLIMBED SHARPLY TOO IT'S REALLY UNNERVING SAYS LASZLO BIRINYI WHO HEADS A FINANCIALSERVICES FIRM THAT BEARS HIS NAME HERE YOU HAVE A SITUATION OF BUY FIRST AND ANALYZE LATER FIFTYSIX TRADES IN TRANSCONTINENTAL REALTY INVESTORS STOCK REPRESENTING 55000 SHARES OCCURRED BEFORE THE NEW YORK STOCK EXCHANGE HALTED TRADING IN THE STOCK TRADING LATER RESUMED AND THE STOCK ENDED OFF 25 CENTS AT 1525 ON TUESDAY A GRAND TOTAL OF 100 SHARES OF TRANSCONTINENTAL'S STOCK CHANGED HANDS JEAN KRONE BONO THE DIRECTOR OF INVESTOR RELATIONS AT TRANSCONTINENTAL REALTY SAYS HER COLLEAGUES WERE FLOORED WHEN THEY HEARD OF THE CONFUSION EVERYBODY I TOLD HERE SAID YOU'VE GOT TO BE KIDDING' SHE SAYS RON CAPPELLETTI MANAGER OF THE PRUDENTIAL SECURITIES OFFICE IN DOWNTOWN COLUMBUS OHIO SAYS ONE OF HIS BROKERS HAD A CLIENT WHO MADE THE MISTAKE AS FAR AS I UNDERSTAND A CLIENT ASKED TO BUY TCI HE SAID WE EXECUTED THE ORDER THEN HE SAYS THE EXCITED CLIENT EXPLAINED THAT SHE HAD HEARD ABOUT THE MERGER DEAL ON TELEVISION THE BROKER SAID THAT'S NOT THE STOCK YOU BOUGHT' SAYS MR CAPPELLETTI A SPOKESMAN FOR TELECOMMUNICATIONS REMAINS ABOVE THE FRAY ANY COMPETENT BROKER SHOULD BE ABLE TO IDENTIFY US IN A HEARTBEAT HE SNIFFS 9310140081 931014 PG&E GAS SUPPLIERS AGREE TO TERMINATE LONGTERM CONTRACTS SAN FRANCISCO PACIFIC GAS & ELECTRIC CO SAID NEARLY ALL OF ITS CANADIAN GAS SUPPLIERS AGREED TO TERMINATE EXISTING LONGTERM CONTRACTS TO SELL GAS TO THE UTILITY FREEING IT TO SEEK SHORTER TERM PERHAPS CHEAPER GASSUPPLY ARRANGEMENTS PG&E SAN FRANCISCO SAID 166 CANADIAN GAS PRODUCERS IN THE SUPPLY POOL OF ITS WHOLLY OWNED CANADIAN SUBSIDIARY ALBE SOUTHERN GAS CO HAVE AGREED TO TERMINATE THE CONTRACTS THE 166 PRODUCERS REPRESENT ALMOST 99 OF THE POOL BY VOLUME AS A RESULT THE UTILITY SAID IT EXPECTS TO HAVE NEW GASSUPPLY ARRANGMENTS IN PLACE BY NOV 1 PENDING REGULATORY APPROVAL FROM CANADA'S NATIONAL ENERGY BOARD AND THE ALBERTA PETROLEUM MARKETING COMMISSION IN A RELATED DEVELOPMENT CANADIAN NATURALGAS MARKETER PANALBERTA GAS LTD SAID IT AGREED TO ACQUIRE ALBERTA & SOUTHERN'S GASSUPPLY AND MARKETING ASSETS THE PREVIOUSLY ANNOUNCED TRANSACTION WAS DEPENDENT ON THE CONTRACTTERMINATION AGREEMENTS WITH THE ALBERTA & SOUTHERN PRODUCERS 9310140080 931014 THE INTERACTIVE AGE THE ACQUISITION OF TCI BELLSOUTH JOINS THE CABLE STAMPEDE WITH DEAL FOR PRIME MANAGEMENT STAKE BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA BELLSOUTH CORP AS EXPECTED SIGNED AN AGREEMENT IN PRINCIPLE TO ACQUIRE 225 OF PRIME MANAGEMENT INC A PRIVATELY HELD CABLESYSTEM OPERATOR BASED IN AUSTIN TEXAS WHILE THE TRANSACTION WILL GIVE THE REGIONALPHONE COMPANY A SIGNIFICANT TOEHOLD IN THE CABLE INDUSTRY ITS IMPACT WAS OVERSHADOWED BY BELL ATLANTIC CORP'S SIMULTANEOUS BID FOR TELECOMMUNICATIONS INC THAT ANNOUNCEMENT SURPRISED BELLSOUTH EXECUTIVES WHO HAD BEEN HEARING RUMBLINGS ABOUT A POSSIBLE ALLIANCE BETWEEN TCI AND AMERICAN TELEPHONE & TELEGRAPH CO BUT SOME BELLSOUTH INSIDERS SAID A BELL ATLANTIC/TCI DEAL MIGHT AID BELLSOUTH'S OWN EFFORTS TO EXPAND INTO CABLE BY FORCING CONGRESS TO PASS MORE LIBERAL TELECOMMUNICATIONS LEGISLATION WE'RE DEALING WITH ENTIRELY NEW PARADIGMS OF WHAT CONSTITUTES A TELECOMMUNICATIONUTH EXECUTIVE SAID IN AUGUST A FEDERAL COURT DECLARED UNCONSTITUTIONAL ON FIRST AMENDMENT GROUNDS A PROVISION OF THE 1984 CABLE ACT BANNING PHONE COMPANIES FROM OFFERING VIDEO PROGRAMMING TO SUBSCRIBERS IN THEIR OWN SERVICE AREAS BUT THE DECISION IS NARROWLY DEFINED AND APPLIES ONLY TO BELL ATLANTIC ALL THE REGIONAL PHONE COMPANIES INCLUDING BELLSOUTH WOULD LIKE TO SEE THE CABLE RULES BROADENED AND RELAXED THE BELL ATLANTIC/TCI ANNOUNCEMENT PROMPTED INDUSTRY EXPERTS TO SPECULATE ON DEAL PROSPECTS FOR BELLSOUTH WHICH IS CONSIDERED FINANCIALLY STRONG ONE BELLSOUTH CONSULTANT OPINED THAT THE TCI/BELL ATLANTIC DEAL WILL PROBABLY PUSH BELLSOUTH AND COX ENTERPRISES INC TOGETHER FOR SOME TYPE OF DEAL BELLSOUTH REFUSED TO COMMENT AND COX WHICH OWNS THE NATION'S SIXTHLARGEST CABLE SYSTEM WASN'T IMMEDIATELY AVAILABLE FOR COMMENT BUT THE TWO COMPANIES HAVE IN THE PAST DISCUSSED VARIOUS PARTNERSHIPS AND ARE ALREADY INVOLVED IN A JOINT VENTURE TO SUPPLY CLASSIFIED ADVERTISING OVER PHONE LINES IN ADDITION TO A HEALTHY BALANCE SHEET BELLSOUTH EARNED 166 BILLION ON REVENUE OF 1520 BILLION LAST YEAR BELLSOUTH HAS BEEN WILLING TO STRUCTURE INNOVATIVE PARTNERSHIPS AS PART OF THE PRIME MANAGEMENT TRANSACTION FOR INSTANCE BELLSOUTH WILL PROVIDE AS MUCH AS 250 MILLION IN DEBT FINANCING TOWARD A 450 MILLION RECAPITALIZATION OF A LAS VEGAS CABLE SYSTEM COMMUNITY CABLE TELEVISION WHICH IS PARTLY OWNED BY PRIME MANAGEMENT ONE PERSON FAMILIAR WITH THE TRANSACTION SAID BELLSOUTH PAID LESS THAN 100 MILLION FOR THE STAKE IN PRIME MANAGEMENT SINCE MOST OF THE INVESTMENT IS IN THE FORM OF A LOAN BELLSOUTH EXECUTIVES SAID THEIR EARNINGS WON'T BE AFFECTED AND THAT FRAMEWORK FREES UP MORE CASH FOR OTHER TRANSACTIONS ACCORDING TO INDUSTRY EXPERTS AS PART OF THE COMMUNITY CABLE RECAPITALIZATION BELLSOUTH WILL ACQUIRE VARIOUS OPTIONS TO PURCHASE ALL OR PART OF COMMUNITY CABLE AND PRIME MANAGEMENT COMMUNITY CABLE WITH MORE THAN 203000 CUSTOMERS ALSO OWNS HOSPITALITY NETWORK WHICH PROVIDES INROOM PROGRAMMING AND INTERACTIVE TV SERVICES IN HOTELS THIS TRANSACTION WILL ALLOW US TO WORK WITH AN ACCOMPLISHED CABLE OPERATOR AND A PROVEN MANAGEMENT TEAM TO PURSUE INTERACTIVE ENTERTAINMENT AND COMMUNICATIONS OPPORTUNITIES IN OUR REGION AND OUTSIDE OUR TRADITIONAL SERVICE AREA SAID JOHN L CLENDENIN CHAIRMAN AND CHIEF EXECUTIVE OF BELLSOUTH IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BELLSOUTH SHARES CLOSED AT 5725 DOWN 75 CENTS 9310140079 931014 THE INTERACTIVE AGE THE ACQUISITION OF TCI PARAMOUNT BATTLE TAKES BACK SEAT FOR TCI'S MALONE BY LAURA LANDRO AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC HAS TAKEN A BACK SEAT TO JOHN MALONE'S BIGGER AGENDA FOR TELECOMMUNICATIONS INC MR MALONE'S STUNNING DECISION TO COMBINE CABLE TV GIANT TCI WITH REGIONAL TELEPHONE POWERHOUSE BELL ATLANTIC CORP AND BECOME VICE CHAIRMAN OF THE NEW COMPANY THROWS INTO EVEN MORE UNCERTAINTY THE CAST OF PLAYERS AND THE FINAL OUTCOME IN THE CONTEST FOR PARAMOUNT THE ENTERTAINMENT AND PUBLISHING GIANT THE BIGGEST QUESTION HOW WILL MR MALONE'S DECISION AFFECT THE 97 BILLION BID FOR PARAMOUNT BY QVC NETWORK INC QVC IS 222OWNED BY LIBERTY MEDIA WHICH IS ABOUT TO BE ACQUIRED BY TCI AND UNTIL YESTERDAY PARAMOUNT WAS CONSIDERED THE REAL PRIZE THAT MR MALONE WAS SEEKING PARAMOUNT IS PROCEEDING WITH ITS PLANNED ACQUISITION BY VIACOM INC IN A TRANSACTION VALUED AT 79 BILLION AND SOME ON WALL STREET THINK THE CONFUSION ON THE QVC SIDE MAY HELP THE VIACOM CASE PARAMOUNT HAS ONLY AGREED TO BEGIN EXPLORATORY TALKS AND SEEK MORE INFORMATION FROM QVC QVC SAID YESTERDAY THAT IT'S RESPONDING TO PARAMOUNT'S REQUESTS AND CONTINUING TO TALK WITH OTHER INVESTORS THAT MAY JOIN THE BID BUT THAT'S WHERE THINGS GET COMPLICATED UP UNTIL THE DAY THE TCI DEAL WAS ANNOUNCED QVC CHAIRMAN BARRY DILLER WAS IN TALKS WITH A BELL ATLANTIC COMPETITOR BELLSOUTH CORP ABOUT INVESTING IN THE QVC DEAL THROUGH LIBERTY WHICH HAS INTERESTS IN CABLE TV PROGRAM AND CABLE SYSTEMS TCI HAS AGREED TO INVEST 500 MILLION IN QVC TO HELP PAY FOR THE PARAMOUNT BID TCI'S DEAL WITH BELL ATLANTIC CAME AS A COMPLETE SURPRISE TO MR DILLER AND HE HAS MADE IT CLEAR THAT SO FAR AT LEAST HE DOESN'T WANT TO BE MORE BEHOLDEN TO TCI THAN HE ALREADY IS BY TURNING TO BELL ATLANTIC FOR FUNDS ONE INFORMED OBSERVER SUGGESTED THAT MR MALONE IN PURSUING HIS GRAND STRATEGY FOR TCI HAS MORE OR LESS KISSED BARRY GOODBYE AND IN HIS PUBLIC STATEMENTS MR MALONE MADE IT CLEAR THAT PARAMOUNT IS HARDLY A PRIORITY WE TOTALLY SUPPORT DILLER AND WILL HONOR OUR COMMITMENT HE SAID BUT HE QUICKLY ADDED IF IN THE FINAL ANALYSIS OUR QVC OWNERSHIP INTERFERES WITH BARRY'S ABILITY TO COMPLETE THE DEAL WE WOULD MAKE WHATEVER MODIFICATIONS UP TO DIVESTING AT ANOTHER POINT YESTERDAY MR MALONE EMPHASIZED THAT QVC INITIATED THE PROCESS WITH PARAMOUNT AND THAT IT IS REALLY VERY PERIPHERAL TO THE BELL ATLANTICTCI DEAL ALTHOUGH HE WISHED MR DILLER A LOT OF LUCK IN WINNING THE TAKEOVER BATTLE HE SAID THAT THE PARAMOUNT OUTCOME ISN'T CENTRAL TO OR A CORE PART OF THE BELL ATLANTIC AND TCI STRATEGY MR MALONE IS ALSO SAID TO BE EXPLORING OTHER ENTERTAINMENT DEALS THAT HE WAS INTERESTED IN BEFORE THE QVC BID FOR PARAMOUNT STILL PEOPLE CLOSE TO MR DILLER SAID HE HAS BEEN PRIVATELY ASSURED BY MR MALONE THAT MR DILLER HAS HIS FULL SUPPORT THE CHOICE OF WHETHER TO SEEK MORE FUNDS FROM TCI AND BELL ATLANTIC IS MR DILLER'S THESE PEOPLE SAID AND PETER BARTON PRESIDENT OF LIBERTY SAID THE BELL ATLANTIC DEAL DOESN'T CHANGE OUR ENTHUSIASM OR STRENGTH OF OUR SUPPORT LIBERTY IS STEADFASTLY SUPPORTIVE HE SAID SUGGESTING THAT LIBERTY WOULD BE WILLING TO INVEST FURTHER IN THE DEAL TO BACK QVC SOME OBSERVERS SAY THE LIKELIHOOD OF BELLSOUTH'S INVESTING IN QVC SEEMS SLIM NOW THAT ONE OF QVC'S MAJOR OWNERS IS GOING TO BE SWALLOWED BY A COMPETING TELEPHONE COMPANY BELLSOUTH DECLINED TO COMMENT YESTERDAY BUT PEOPLE FAMILIAR WITH THE TALKS SAY THAT THEY ARE STILL PROCEEDING IN TALKS WITH QVC AND THAT BELLSOUTH REMAINS INTERESTED IF IT IS FRUSTRATED SOME BELIEVE BELLSOUTH MIGHT EVEN SEEK ANOTHER WAY INTO THE PARAMOUNT FRAY SUCH AS A COMPETING BID QVC IS ALSO TALKING TO POTENTIAL CABLE COMPANY INVESTORS INCLUDING COX ENTERPRISES INC IN ANY EVENT MR DILLER HAS SAID HE DOESN'T WANT TO BRING ANY OTHER INVESTORS IN IF HE DOESN'T HAVE TO AND FOR NOW HE DOESN'T HE CONTINUES TO HAVE BANK COMMITMENTS TO FINANCE HIS OFFER WHICH STILL EXCEEDS VIACOM'S BY ALMOST 2 BILLION AND A THIRD QVC HOLDER COMCAST CORP IS ALSO INVESTING 500 MILLION COMCAST STOCK WAS UP SHARPLY YESTERDAY AS WALL STREET SPECULATED THAT THE PHILADELPHIABASED CABLE COMPANY CONTROLLED BY THE ROBERTS FAMILY MAY ITSELF WANT TO LINK UP WITH A BELL COMPANY COMCAST WITH 28 MILLION CABLE SUBSCRIBERS HAS BEEN AGRESSIVE IN DIVERSIFYING INTO THE CELLULAR PHONE BUSINESS AND PROGRAMMING THROUGH ITS INVESTMENT IN QVC WHERE IT OWNS A 126 SHARE BUT IT WILL BE HARDPRESSED TO PLAY IN THE BIG LEAGUES WITHOUT A POWERFUL PARTNER NOW BRIAN ROBERTS COMCAST PRESIDENT DECLINED TO COMMENT ON SPECULATION THAT HIS COMPANY MIGHT TOO LINK UP WITH A REGIONAL BELL CONCERN COMCAST HAS FOLLOWED A STRATEGY OF GETTING BIGGER IN CABLE AND ENTERING CELLULAR AND QVC MR ROBERTS SAID THE COMBINATION OF BELL ATLANTIC AND TCI SEEMS TO BE AN AFFIRMATION OF THAT STRATEGY COMCAST CONTINUES TO FULLY SUPPORT QVC'S BID FOR PARAMOUNT HE ADDED COMCAST CLASS A SHARES GAINED 6375 YESTERDAY CLOSING AT 39625 IN NATIONAL OVERTHECOUNTER TRADING THE NEWS OF THE BELL ATLANTICTCI DEAL LIFTED THE SHARES OF OTHER COMBATANTS IN THE PARAMOUNT TAKEOVER BATTLE VIACOM'S CLASS B STOCK ROSE 475 A SHARE TO 57 ITS CLASS A JUMPED 5625 TO 6225 IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE IN NATIONAL OVERTHECOUNTER TRADING MEANWHILE QVC CLOSED AT 5750 A SHARE UP 250 PARAMOUNT ROSE 625 CENTS TO 77375 ON THE NEW YORK STOCK EXCHANGE IN THE WAKE OF THE BELL ATLANTICTCI TRANSACTION ANALYST EDWARD HATCH OF UBS SECURITIES INC PREDICTED THAT THE PERSHARE VALUE OF OFFERS FOR PARAMOUNT WILL INCREASE NOW I SEE IT GOING HIGHER BECAUSE OF THE STRATEGIC NATURE OF PARAMOUNTOF ITS ENHANCED VALUE TO DISTRIBUTORS HE SAID VIACOM AND PARAMOUNT OFFICIALS WERE MEETING WITH LAWMAKERS IN WASHINGTON YESTERDAY CONTINUING TO PRESS THEIR CHARGES THAT QVC IS PART OF A VAST CABAL CONTROLLED BY MR MALONE VIACOM HAS TRIED TO BLOCK QVC'S BID WITH AN ANTITRUST SUIT AGAINST TCI AND YESTERDAY VIACOM CHAIRMAN SUMNER REDSTONE SAID THE BELL ATLANTICTCI ANNOUNCEMENT RAISES MANY NEW AND TROUBLING QUESTIONS ABOUT THE MALONE GROUP'S MARKET DOMINANCE AND MONOPOLISTIC INTENTIONS TCI AND QVC HAVE DISMISSED MR REDSTONE'S ACCUSATIONS AS FRIVOLOUS AND SAY HE IS MERELY USING THE LEGAL MANEUVERING TO FORESTALL RAISING HIS BID TO MATCH QVC'S INDEED ALTHOUGH MR REDSTONE HAS RAISED 18 BILLION IN CASH FROM NYNEX CORP AND BLOCKBUSTER ENTERTAINMENT CORP HE HAS YET TO SWEETEN VIACOM'S BID FOR PARAMOUNT WITH THE PARAMOUNT BOARD BEHIND THE VIACOM MERGER SO FAR SOME PEOPLE CLOSE TO VIACOM SUGGEST MR REDSTONE MAY JUST SIT BACK AND WAIT TO SEE IF THE QVC CAMP FALLS INTO DISARRAY BUT PEOPLE CLOSE TO QVC SAID THAT THE BID REMAINS AS STRONG AS EVER AND THAT IF ANYTHING MR DILLER HAS MORE FLEXIBILITY THAN BEFORE WHAT IS AVAILABLE NOW TO BARRY IF HE CHOOSES TO TAKE IT IS ALMOST LIMITLESS CASH EVEN ENOUGH TO MAKE AN ALLCASH BID SAID ONE INVESTOR IN QVC THOUGH MR DILLER IS LOATH TO DEPEND ON BELL ATLANTIC AND TCI THIS INVESTOR ADDED WILL HE DO IT IF HE HAS TO TO WIN PARAMOUNT I THINK YES 9310140077 931014 MARKETING & MEDIA ADVERTISING HOT CREATIVE TALENTS NO LONGER THE BRIGHT LIGHTS IN BIG AGENCIES BY LAURA BIRD THE HIGHPROFILE CREATIVE EXECUTIVE HAS BECOME AN ENDANGERED SPECIES ON MADISON AVENUE JUST A FEW YEARS AGO AGENCIES WERE RAIDING EACH OTHER'S RANKS RIGHT AND LEFT FOR TOP CREATIVE TALENT TURNING COPYWRITERS AND ART DIRECTORS INTO MINOR CELEBRITIES BUT THESE DAYS SOME OF THOSE STARS HAVE FADED AND A NUMBER OF THE JOBS THEY LEFT BEHIND ARE GOING UNFILLED OFTEN IT WAS CHARISMA AND REPUTATION RATHER THAN ARTISTIC TALENT OR SKILL THAT BIG AGENCIES SOUGHT BY RECRUITING HIGHPROFILE CREATIVE TALENT SAYS ALAN GOTTESMAN ADVERTISING INDUSTRY ANALYST AT PAINE WEBBER THE WAY THEY PRESENTED OR THEIR RELATIONSHIPS USED TO BE AN IMPORTANT PART OF THE CEMENT BINDING THE AGENCY TO THE CLIENT HE SAYS BUT THAT HAS CHANGED CLIENTS DEPEND ON AGENCIES MORE TO EXECUTE THE MECHANICS OF ADVERTISING THESE DAYS HE SAYS DIMINISHING THE INFLUENCE OF A SINGLE CREATIVE STAR OVER THE PAST THREE YEARS SOME OF THE BIGGEST AGENCIES ON MADISON AVENUE WELCOMED A RAFT OF CREATIVE HOTSHOTS THEN WATCHED THEM LEAVE IN 1990 YOUNG & RUBICAM THE BIG NEW YORK AGENCY SNARED HELAYNE SPIVAK FROM MIDSIZE HAL RINEY & PARTNERS AND PUT HER IN CHARGE OF ITS FLAGSHIP OPERATIONS THREE YEARS LATER SHE DECLINED TO RENEW HER CONTRACT AND RETURNED TO A FORMER EMPLOYER AMMIRATI & PURIS A MIDSIZE NEW YORK AGENCY IN 1991 BACKER SPIELVOGEL BATES A BIG AGENCY OF SAATCHI & SAATCHI CO PLUCKED DON EASDON FROM HILL HOLLIDAY CONNORS COSMOPULOS THE BOSTON BOUTIQUE WHERE HE WAS CREDITED WITH CREATING THE FAMOUS ROCKSANDTREES CAMPAIGN FOR NISSAN MOTOR'S INFINITI AND PUT HIM IN CHARGE OF CREATIVE WORK AT ITS THENAILING US OPERATIONS TWO YEARS LATER HE LEFT TO SET UP SHOP WITH HIS FORMER PARTNER FROM HILL HOLLIDAY ALSO IN 1991 INTERPUBLIC GROUP'S MCCANNERICKSON LURED GORDON BOWEN AWAY FROM WPP GROUP'S OGILVY & MATHER AND THE AMERICAN EXPRESS ACCOUNT PUTTING HIM IN CHARGE OF CREATIVE WORK ON THE COCACOLA ACCOUNT AND ITS FLAGSHIP NEW YORK OFFICES THAT SAME YEAR LINTAS MCCANNERICKSON'S SISTER AGENCY HIRED TONY DEGREGORIO AWAY FROM THE NOWDEFUNCT UNIT OF GREY ADVERTISING LEVINE HUNTLEY SCHMIDT & BEAVER TO OVERSEE THE AGENCY'S CREATIVE WORK INCLUDING COCACOLA'S DIET COKE ACCOUNT SINCE THEN MR BOWEN HAS LEFT MCCANN AT LEAST PARTLY BECAUSE COCACOLA DECIDED TO ASSIGN MUCH OF THE CREATIVE WORK ON ITS ACCOUNT TO THE TALENT AGENCY CREATIVE ARTISTS AGENCY HE HASN'T BEEN HEARD FROM MUCH ON MADISON AVENUE LATELY AND NOW THAT DIET COKE HAS REMOVED ITS ACCOUNT FROM LINTAS MR DEGREGORIO'S FUTURE THERE HAS BEEN THE SUBJECT OF MUCH PUBLIC SPECULATION HE DIDN'T RETURN A CALL SEEKING COMMENT CERTAINLY SOME OF THE MARRIAGES BETWEEN BIG AGENCIES AND CREATIVE HOTSHOTS FROM SMALLER SHOPS HAVE WORKED OUT FINE AS AN EXAMPLE EXECUTIVES POINT TO BILL HAMILTON CREATIVE HEAD OF THE NEW YORK OFFICE OF WPP GROUP'S OGILVY & MATHER WHICH WOOED HIM AWAY FROM CHIAT/DAY SEVERAL YEARS AGO JUDY WALD WHO RUNS A CREATIVE SEARCH AND RECRUITMENT FIRM SAYS WHETHER CREATIVE TRANSPLANTS SUCCEED DEPENDS LARGELY ON THE CLIENT IF THE CLIENTS DON'T CONSIDER THEM AN IMPROVEMENT THEN THEY DON'T TAKE SHE SAID CREATIVE TYPES WHO SHINE AT SMALL AGENCIES JUST MAY NOT BE SUITED TO BIGAGENCY LIFE SAYS SUSAN FRIEDMAN A CREATIVE SEARCH CONSULTANT IN NEW YORK WHEN YOU PUT REALLY TALENTED CREATIVE DIRECTORS IN CHARGE AT A LARGE AGENCY THEY ARE ADMINISTERING AND HANDLING PERSONNEL PROBLEMS AND DEVOTING LITTLE TIME TO CREATING AD CAMPAIGNS SHE SAID MARTIN PURIS CHIEF EXECUTIVE AND PRESIDENT OF AMMIRATI & PURIS WHICH RECENTLY REHIRED MS SPIVAK THINKS BIG AGENCIES EXPECT TOO MUCH OF CELEBRITY CREATIVE EXECUTIVES BIG AGENCIES GET BORED SO THEY LOOK FOR SOMEONE TO COME IN AND DEFINE THEM HE CONTENDS YOU CAN'T CHANGE AN AGENCY BY BRINGING IN ONE PERSON IT HAS TO BE A GENETIC THING AND THAT TAKES TIME MS SPIVAK COULDN'T BE REACHED FOR COMMENT TED BELL VICE CHAIRMAN AND WORLDWIDE CREATIVE DIRECTOR AT YOUNG & RUBICAM SAYS THAT RATHER THAN HIRING ANOTHER HOTSHOT TO SUCCEED MS SPIVAK AT YOUNG & RUBICAM'S NEW YORK OFFICE HE PLANS TO DELEGATE HANDSON CREATIVE RESPONSIBILITIES TO THREE OR FOUR EXECUTIVES REPORTING TO HIM ALTHOUGH MR BELL BECAME SOMETHING OF AN ADVERTISING CELEBRITY HIMSELF EARLIER THIS YEAR WHEN Y&R HIRED HIM AWAY FROM LEO BURNETT CO IN CHICAGO HE IS KNOWN MORE FOR MANAGING BIG CREATIVE DEPARTMENTS THAN FOR PERSONALLY DEVELOPING ADS I'M NOT GOING TO CREATE A LOGJAM OF PEOPLE OUTSIDE MY DOOR WHERE EVERYBODY HAS TO SHOW ME EVERYTHING MR BELL SAYS REALLY GOOD PEOPLE LOVE TO SEE OTHER PEOPLE DEVELOP THE JOY COMES FROM SEEING OTHER PEOPLE SUCCEED ELIMINATING THE HIGHPROFILE CREATIVE SLOTS HAS BEEN A MONEYSAVER TO AGENCIES THAT DON'T PLAN TO FILL THEM THE RECENT WAVE OF CELEBRITY CREATIVE EXECUTIVES RECEIVED BASE SALARIES OF AT LEAST 500000 EACH AD AGENCY OFFICIALS ESTIMATE SOME OF THEM RECEIVED PACKAGES WORTH AS MUCH AS 1 MILLION BUT AGENCIES SKIMP ON FAMOUSNAME CREATIVES AT THEIR OWN PERIL SAYS JAMES DOUGHERTY A MEDIAINDUSTRY ANALYST AT DEAN WITTER THERE ARE TWO THINGS THAT CLIENTS WANT AGENCIES TO PROVIDE STRATEGIC THINKING AND CREATIVE EXECUTIONS THE CREATIVE FUNCTION IS GOING TO GET MORE IMPORTANT NOT LESS IN ANOTHER VICTORY FOR CREATIVE ARTISTS AGENCY COCACOLA CO AWARDED THE ASSIGNMENT OF PRODUCING ITS ADVERTISEMENTS FOR NEXT SUMMER'S WORLD CUP SOCCER CHAMPIONSHIP TO THE HOLLYWOOD TALENT AGENCY ACCORDING TO INDUSTRY OFFICIALS COKE AND CAA DECLINED COMMENT CAA ALREADY WILL PRODUCE VIRTUALLY ALL OF THE COKE ADS FOR THE 1994 WINTER OLYMPICS IN FEBRUARY COKE IS A MAJOR SPONSOR OF THE OLYMPICS AND MANY OF THE ADS WILL FEATURE THE NOW FAMOUS ANIMATED POLAR BEARS THAT STARRED IN ONE OF THIS YEAR'S COKE'S SPOTS EARLIER THIS YEAR CAA PRODUCED ALL BUT TWO OF THE NEW ALWAYS COKE ADS BEATING OUT COKE'S LONGTIME CREATIVE ADVERTISING AGENCY INTERPUBLIC GROUP'S MCCANNERICKSON THE WORLD CUP MATCHES ARE SCHEDULED TO BE HELD IN NINE LOCATIONS INCLUDING NEW JERSEY'S MEADOWLANDS LOS ANGELES CHICAGO DALLAS AND DETROIT BEGINNING JUNE 17 THE MATCHES ARE TO BE BROADCAST ON CAPITAL CITIES/ABC'S NETWORK AND THE ALLSPORTS CABLE NETWORK ESPN TONY HOUGHTON THE 55YEAROLD PRESIDENT OF SAN FRANCISCOBASED HAL RINEY & PARTNERS AGENCY IS LEAVING TO RETURN TO HIS OLD EMPLOYER LEO BURNETT CO HE WAS NAMED PRESIDENT OF ITS US OPERATIONS JUST LAST YEAR HAL RINEY SNARED MR HOUGHTON FROM HIS JOB HEADING UP BURNETT'S TORONTO OPERATIONS AND GAVE HIM DAYTODAY CONTROL OF THE HAL RINEY AGENCY MR HOUGHTON AND JOE O'NEILL AN EXECUTIVE VICE PRESIDENT AT THE RINEY AGENCY WHO WAS PROMOTED TO NATIONAL CREATIVE DIRECTOR WERE HERALDED AS MR RINEY'S HEIRS NOW MR RINEY IS RESUMING THE ROLE OF PRESIDENT SAID DAVID VERKLIN 37 YEARS OLD A SEVENYEAR EMPLOYEE OF THE AGENCY WHO WAS NAMED MANAGING DIRECTOR OF THE FLAGSHIP SAN FRANCISCO OFFICE AFTER MR HOUGHTON'S DEPARTURE MR VERKLIN HAD PREVIOUSLY BEEN CORPORATE MEDIA DIRECTOR AND DIRECTOR OF BUSINESS DEVELOPMENT ACCOUNTS EISNER & ASSOCIATES BALTIMORE WON AN ADVERTISING AND MARKETING ASSIGNMENT FOR THE DEWALT LINE OF PROFESSIONAL POWER TOOLS FROM BLACK & DECKER CORP AN ACCOUNT PREVIOUSLY ESTIMATED AT 7 MILLION AT LEO BURNETT CO BURNETT RETAINS THE REST OF THE BIG BLACK & DECKER ACCOUNT 9310140076 931014 BUSINESS BRIEF FROZEN FOOD EXPRESS INDUSTRIES INC COMPANY SAYS QUARTERLY NET WAS UP 19 FROM YEAR AGO FROZEN FOOD EXPRESS INDUSTRIES INC EXPECTS TO REPORT THAT THIRDQUARTER EARNINGS ROSE ABOUT 19 STONEY M STUBBS JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID MR STUBBS SAID IN DALLAS THAT HE EXPECTS QUARTERLY NET INCOME OF 25 MILLION OR 26 CENTS A SHARE TO 26 MILLION OR 27 CENTS A SHARE COMPARED WITH 21 MILLION OR 22 CENTS A SHARE A YEAR EARLIER THE TRUCKING COMPANY ADDED THAT REVENUE ROSE ROUGHLY 19 TO 60 MILLION FROM 504 MILLION A YEAR AGO MR STUBBS SAID IN AN INTERVIEW THAT QUARTERLY PROFIT WAS PRETTY GOOD BUT NOT AS GOOD AS I THINK IT SHOULD HAVE BEEN HE ATTRIBUTED THE IMPROVED EARNINGS TO HIGHER DEMAND FOR FROZEN FOOD EXPRESS'S REFRIGERATED TRUCKING SERVICES A LARGER FLEET OF TRUCKS AND NO SIGNIFICANT DRIVER SHORTAGE SO FAR THIS YEAR 9310140075 931014 LETTERS TO THE EDITOR WHAT'S THAT THING YOU'RE DRIVIN' BUDDY REGARDING YOUR SEPT 21 PAGEONE ARTICLE NEW PONY THAT'S IT THE 1994 MUSTANG IT TOOK THREE YEARS AND 700 MILLION TO COME UP WITH THAT ANOTHER WEDGESHAPED JELLY BEAN ON WHEELS C'MON FORD YOU'RE SERIOUS THE FORD FOLKS SHOULD STROLL ON OVER TO GM AND HOOK UP WITH THE BRIGHT STARS WHO IN THE '80S TACKED A CADILLAC EMBLEM ON A CHEVY BODY AND CALLED IT A CIMMERON FROM THERE YOU COULD HANG OUT WITH THE FOLKS WHO TOOK THE 1964 PONTIAC GRAND PRIX THE '63 BUICK RIVIERIA AND THE OLDSMOBILE TORONADO AND TURNED THEM EACH INTO JUST ANOTHER CAR THEN THE WHOLE BUNCH OF YOU CAN RAMBLE ON BACK TO FORD AND MEET UP WITH THE WIZARDS WHO TOOK THE 1960 THUNDERBIRD AND THE '61 LINCOLN CONTINENTAL AND MASSMARKETED THEM INTO NOTHING SPECIAL YOU'D BE IN FAMILIAR COMPANY PEOPLE WHO HAVE UNITIZED SANITIZED AND STANDARDIZED CLASSIC AMERICAN CARS INTO ONE HOMOGENOUS HEAP BURIED THEM IN THE JELLY BEAN JAR OF OBLIVION BETTER THE EMBLEMS AND HOOD ORNAMENTS BE ALLOWED TO DIE WITH DIGNITY OH FOR THE DAYS WHEN WE COULD IDENTIFY A CAR COMPANY BY THE UNIQUE PRODUCTS IT PLACED ON THE ROAD FOR THE DAYS WHEN BECAUSE OF THE DISTINCTIVE LOOK OF OUR OWN CAR WE COULD TAKE PRIDE IN OUR RIDE 9310140074 931014 BUSINESS BRIEF PH GLATFELTER CO THIRDPERIOD NET DECREASED 76 FEDERAL TAX RATE CITED PAPER MANUFACTURER PH GLATFELTER CO SAID THIRDQUARTER NET INCOME FELL 76 REFLECTING THE IMPACT OF A CHANGE IN THE FEDERAL TAX RATE GLATFELTER OF SPRING GROVE PA SAID NET WAS 29 MILLION OR SEVEN CENTS A SHARE COMPARED WITH 119 MILLION OR 27 CENTS A SHARE IN THE YEARAGO PERIOD THE RESULTS INCLUDED A CHARGE OF 35 MILLION FOR AN INCREASE IN THE FEDERAL TAX RATE TO 35 FROM 34 THE COMPANY'S SALES FOR THE QUARTER FELL 13 TO 1163 MILLION FROM 1334 MILLION THE COMPANY SAID THE QUARTER'S RESULTS WERE SATISFYING IN LIGHT OF CONTINUED SOFTNESS IN THE PAPER MARKET AND THAT IT DOESN'T EXPECT ANY SIGNIFICANT IMPROVEMENT IN THE FOURTH QUARTER FOR THE NINE MONTHS THE COMPANY HAD NET OF 78 MILLION OR 18 CENTS A SHARE AN 81 DROP FROM 423 MILLION OR 95 CENTS A SHARE A YEAR AGO THE RESULTS FOR THE NINE MONTHS INCLUDED THE CHARGE FOR CHANGES IN THE TAX RATE AND A 42 MILLION CHARGE FOR ACCOUNTING CHANGES 9310140073 931014 ENTERPRISE CURE FOR MEWA FRAUD MAY BE IN CLINTON HEALTH PLAN SMALLBUSINESS EMPLOYEES HAVE BEEN HURT BY UNPAID MEDICAL CLAIMS BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL THE CLINTON HEALTH PLAN AIMS TO SUCCEED AT A TASK THAT HAS FRUSTRATED CRIME BUSTERS FOR YEARS WIPING OUT MEWA FRAUD THIS WOULD BE WELCOME NEWS TO ARMIES OF SMALLBUSINESS EMPLOYEES LIKE ELIZABETH PAUL FRAUD INVOLVING A MULTIPLEEMPLOYER WELFARE ARRANGEMENT OR MEWA LEFT THE 63YEAROLD WAITRESS WITH ABOUT 8400 IN UNPAID MEDICAL BILLS SHE SAYS SHE IS PAYING OFF THE DEBT AT THE FASTEST RATE SHE CAN AFFORD 25 A MONTH SHE ISN'T ALONE MILLIONS OF SMALLBUSINESS OWNERS AND EMPLOYEES GET THEIR HEALTHCARE COVERAGE THROUGH MEWAS THESE BAND TOGETHER SMALL COMPANIES THAT TYPICALLY CAN'T AFFORD OR EVEN OBTAIN EMPLOYEE HEALTH INSURANCE ON THEIR OWN EACH SMALL FIRM PAYS PREMIUMS INTO A COMMON POT WHICH IS THEN USED TO PAY CLAIMS OR BUY HEALTH INSURANCE FOR THE GROUP WHILE MANY MEWAS ARE COMPLETELY HONEST CROOKED PRACTICES HAVE SURVIVED REPEATED LAWENFORCEMENT CRACKDOWNS IN A RECENT 3 1/2YEAR PERIOD MEWAS LEFT NEARLY 400000 PEOPLE WITH SOME 123 MILLION IN UNPAID CLAIMS A 1992 REPORT BY THE GENERAL ACCOUNTING OFFICE ESTIMATED MRS PAUL IS A TYPICAL VICTIM HER EMPLOYER A SMALL INDEPENDENTLY OWNED HOTEL IN MAPLE SHADE NJ SIGNED UP WITH A MEWA OPERATOR NAMED ROBERT VALOIS ACCORDING TO AN INDICTMENT FILED IN PHILADELPHIA FEDERAL COURT EARLIER THIS YEAR MR VALOIS TOOK IN NEARLY 3 MILLION IN PREMIUM PAYMENTS BUT FAILED TO PAY AT LEAST 790000 IN EMPLOYEE MEDICAL CLAIMS IN JULY MR VALOIS WAS CONVICTED OF MAIL AND WIRE FRAUD AND SENTENCED TO TWO YEARS IN FEDERAL PRISON I HOPE THE CLINTON HEALTH PLAN CAN HELP PUT AN END TO SUCH FRAUDS SAYS MRS PAUL ADMINISTRATION OFFICIALS AND OTHERS SAY THE PRESIDENT'S PLAN WOULD HELP FOR A SIMPLE REASON IT WOULD ELIMINATE MEWAS WHEN IT COMES TO MEWA FRAUD WE ARE ON THE VERGE OF DECLARING VICTORY AND LEAVING THE FIELD SAYS GUSTAVE SCHICK ASSISTANT INSPECTOR GENERAL OF A LABOR DEPARTMENT UNIT THAT HAS BEEN HELPING INVESTIGATE AND PROSECUTE MEWA FRAUDS UNDER THE CLINTON HEALTH PLAN SMALL BUSINESSES WOULD OBTAIN HEALTHCARE COVERAGE THROUGH HUGE STATEREGULATED HEALTH ALLIANCES A SMALL BUSINESS'S EMPLOYEES WOULD CHOOSE FROM A MENU OF ALLIANCEAPPROVED HEALTH PLANS IN SUCH A SYSTEM THERE IS REALLY NO PLACE FOR MEWAS SAYS GARY CLAXTON AN OFFICIAL AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES WHO IS WORKING ON THE CLINTON HEALTH PLAN SOME SAY THE PLAN THROWS OUT THE BABY WITH THE BATH WATER IT WOULD BE A SHAME TO DESTROY ORGANIZATIONS SUCH AS OURS SAYS DON DRESSLER PRESIDENT OF INSURANCE SERVICES FOR THE WESTERN GROWERS ASSOCIATION IN IRVINE CALIF MR DRESSLER'S TRADE GROUP PROVIDES HEALTH COVERAGE TO SOME 2000 FRUIT AND VEGETABLE GROWERS AND THEIR 18000 EMPLOYEES THROUGH ITS OWN MEWA THE OFFICIAL SAYS HIS GROUP'S PLAN HAS EXISTED FOR 35 YEARS AND IS BETTER ABLE TO TAILOR COVERAGE TO ITS MEMBERS' NEEDS THAN A HUGE HEALTH ALLIANCE WOULD HUNDREDS OF TRADE ASSOCIATIONS AROUND THE COUNTRY OFFER THEIR OWN MEWA HEALTH PLANS CHESTER MERRITT A VICE PRESIDENT OF THE AMERICAN SOCIETY OF ASSOCIATION EXECUTIVES A WASHINGTON DC GROUP THAT REPRESENTS ASSOCIATIONS ESTIMATES THAT ABOUT 3000 OF ITS MEMBERS OFFER MEWAS THAT COVER NEARLY TWO MILLION WORKERS LIKE OTHERS MR MERRITT ARGUES THAT FRAUDULENT MEWAS MAKE UP ONLY A TINY FRACTION OF THE PLANS HE SAYS HIS GROUP WILL BE SEEKING WAYS TO ALLOW ASSOCIATIONS TO REMAIN IN THE HEALTH BUSINESS UNDER ANY NEW SYSTEM BUT UNDER THE CURRENT SYSTEM AT LEAST MEWAS ARE A FERTILE GROUND FOR FRAUD SAYS RONALD H LEVINE CHIEF OF THE PUBLIC CORRUPTION AND LABOR RACKETEERING SECTION OF THE US ATTORNEY'S OFFICE IN PHILADELPHIA WITH THE COSTS AND DIFFICULTIES MANY FACE GETTING HEALTH COVERAGE YOU HAVE SOME VERY VULNERABLE PEOPLE HE SAYS MR LEVINE SAYS HIS OFFICE AND OTHER FEDERAL AGENCIES HAVE A MAJOR INITIATIVE UNDER WAY TO INVESTIGATE AND PROSECUTE MEWA FRAUD IN AUGUST FOR INSTANCE A FEDERAL GRAND JURY IN PHILADELPHIA RETURNED A FRAUD INDICTMENT AGAINST CRAIG B SOKOLOW A LOCAL ATTORNEY WHO ALLEGEDLY RAN HEALTH PLANS THAT LEFT OVER 55 MILLION IN UNPAID CLAIMS MR SOKOLOW HAS DENIED ANY WRONGDOING AND HIS TRIAL IS SET FOR EARLY NEXT YEAR AND LAWENFORCEMENT OFFICIALS WORRY THAT HAGGLING OVER THE CLINTON HEALTH PLAN COULD CREATE LOOPHOLES THAT WOULD INVITE CONTINUED MEWA FRAUD IF THE FINAL VERSION OF ANY HEALTHCARE OVERHAUL DOESN'T SPECIFICALLY STOP MEWAS YOU COULD HAVE A HOLE BIG ENOUGH TO DRIVE A TRUCK THROUGH SAYS DAVID MATTAX AN ASSISTANT ATTORNEY GENERAL IN TEXAS MEWA CROOKS ARE VERY STREETSMART CONFIDENCE PEOPLE WHO HAVE ALREADY SHOWN AN ABILITY TO ADAPT SAYS HERB CLARK CHIEF OF STAFF FOR THE FLORIDA DEPARTMENT OF INSURANCE WHEN REGULATORS BEGAN CRACKING DOWN ON MEWAS A COUPLE OF YEARS AGO SOME OPERATORS STARTED TO ESTABLISH PURPORTEDLY UNIONCONNECTED PLANS LAWENFORCEMENT OFFICIALS SAY UNDER FEDERAL LAW UNIONRELATED HEALTH PLANS ARE EXEMPT FROM STATE CONTROL THEY ARE REGULATED BY THE LABOR DEPARTMENT WHICH HAS FEWER ENFORCEMENT AGENTS THAN THE STATES DO THOUGH THERE ARE MANY LEGITIMATE UNION PLANS SOME FRAUDULENT MEWA OPERATORS HAVE SIMPLY USED A UNION GUISE FOR THEIR SCAMS REGULATORS SAY REGULATORS ALSO WORRY THAT SOME MEWA OPERATORS MAY TRY TO EXPLOIT THE LARGEEMPLOYER EXEMPTION PROPOSED IN THE CLINTON HEALTH PLAN WHICH ALLOWS A FIRM WITH 5000 OR MORE WORKERS TO KEEP ITS OWN HEALTH PLAN AND NOT HAVE TO JOIN AN ALLIANCE BY USING A DEVICE SUCH AS AN EMPLOYEELEASING COMPANY SOME MEWA FRAUDSTERS MIGHT SAY THEY ARE ONE LARGE GROUP AND NOT A COLLECTION OF SMALL EMPLOYERS SAYS FLORIDA'S MR CLARK MR CLAXTON OF THE CLINTON ADMINISTRATION SAYS UNION PLANS WILL HAVE TO BE PRECERTIFIED BY THE LABOR DEPARTMENT AS BEING PART OF A LEGITIMATE COLLECTIVEBARGAINING PROCESS HE ALSO SAYS EMPLOYEELEASING FIRMS WILL HAVE TO JOIN THE REGIONAL ALLIANCES WHATEVER THE FINAL PACKAGE REGULATORS HOPE IT WILL HAVE TOUGH ENOUGH NEW STANDARDS TO GET THE MEWA CROOKS MOVING ELSEWHERE AFTER ALL SAYS NORTH CAROLINA INSURANCE COMMISSIONER JAMES LONG THEY AREN'T DEDICATED TO HEALTH SCAMS THEY ARE JUST DEDICATED TO SCAMS 9310140072 931014 TRAVELERS PLANS TO TAKE CHARGE OF 325 MILLION INSURER'S POLLUTION RESERVES TO BE BOOSTED MOVE FOLLOWS INDUSTRY TREND BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL TRAVELERS CORP SAID IT WILL TAKE A 325 MILLION CHARGE IN THE THIRD QUARTER FOR POLLUTION RESERVES THE LATEST IN A STRING OF ENVIRONMENTAL LOSSES SUFFERED BY INSURANCE COMPANIES THE RESERVE ADDITION WILL AMOUNT TO AN AFTERTAX CHARGE OF 211 MILLION OR 144 A SHARE AS A RESULT OF THE CHARGE THE HARTFORD CONN INSURER WILL REPORT A LOSS FOR THE THIRD QUARTER BUT THE COMPANY SAID ITS OPERATING RESULTS FOR THE PERIOD EXCLUDING THE CHARGE WILL BE BETTER THAN IN COMPARABLE QUARTERS IN THE YEAREARLIER PERIOD TRAVELERS HAD A LOSS OF 3583 MILLION OR 354 A SHARE ON AN OPERATING BASIS WHICH EXCLUDES CAPITAL GAINS TRAVELERS HAD A LOSS OF 3959 MILLION OR 390 A SHARE LAST YEAR'S RESULTS INCLUDE CLAIMS FROM HURRICANE ANDREW AND A RESTRUCTURING CHARGE TRAVELERS' CHARGE IN THE RECENT QUARTER STEMS FROM RESERVES FOR ASBESTOS ENVIRONMENTAL LIABILITIES AND LITIGATION COSTS WITHIN THE LAST YEAR AETNA LIFE & CASUALTY CO ITT CORP'S HARTFORD INSURANCE UNIT CNA CORP AND OTHER INSURANCE COMPANIES HAVE TAKEN BIG CHARGES FOR ASBESTOS AND POLLUTION EXPOSURES ASBESTOS LOSSES ARE BELIEVED TO BE NEARING AN END FOR THE INSURANCE INDUSTRY BUT AS POLLUTION CASES WIND THEIR WAY THROUGH THE COURTS THE INDUSTRY WILL BE ANNOUNCING MORE LOSSES IN THE YEARS AHEAD THIS IS GOING TO BE AN ONGOING EXERCISE WITH EVERY COMPANY SAID JOHN SNYDER SENIOR VICE PRESIDENT OF AM BEST CO THIS WILL BE A BROKEN RECORD FOR THE INDUSTRY FOR THE NEXT SEVERAL YEARS MR SNYDER ESTIMATES THAT THE INSURANCE INDUSTRY HAS PAID ABOUT 10 BILLION TO SETTLE ASBESTOS CASES HE SAID THE ULTIMATE COST FOR POLLUTION LOSSES WILL BE MULTIPLES OF THAT BUT THAT THE MONEY WILL BE PAID OUT OVER SEVERAL DECADES TRAVELERS SAID ITS DECISION TO ADD TO ASBESTOS RESERVES RELATED TO A GROWTH OF CLAIMS BROUGHT BY OUTSIDE WORKERS WHO ALLEGE EXPOSURE TO ASBESTOS WHILE WORKING ON SITE AT VARIOUS COMPANIES TRAVELERS SAID IT SAW GROWTH IN SUCH CLAIMS THIS YEAR AS FOR THE POLLUTION LOSSES TRAVELERS SAID THEY AROSE FROM CLAIMS MADE BY SMALLER COMPANIES AND THAT TRAVELERS HAS ALSO BEEN NAMED AS A DEFENDANT IN POLLUTION CASES BROUGHT BY OTHER INSURERS THE ADDITIONAL RESERVES WILL BOOST TRAVELERS' TOTAL RESERVES FOR ASBESTOS AND ENVIRONMENTAL LITIGATION AFTER REINSURANCE TO 670 MILLION THE RESERVE LEVEL IS SLIGHTLY HIGHER THAN AT OTHER INSURANCE COMPANIES TRAVELERS HAS AVERAGED ABOUT 100 MILLION A YEAR IN LOSSES ON ASBESTOS AND POLLUTION SO THE RESERVE MEANS IT HAS PUT ENOUGH MONEY ASIDE TO COVER ABOUT SEVEN YEARS OF LOSSES SAID WESTON HICKS AN ANALYST WITH SANFORD C BERNSTEIN THEIR RESERVES LOOK PRETTY GOOD AT THIS POINT MR HICKS SAID BUT ENVIRONMENTAL EXPOSURE STILL REPRESENTS A MAJOR UNCERTAINTY FOR TRAVELERS AND OTHER INSURANCE COMPANIES HE CUT HIS ESTIMATE FOR TRAVELERS THIRDQUARTER OPERATING RESULTS TO AN 85 CENTASHARE LOSS FROM A 58 CENTASHARE GAIN THE THIRDQUARTER LOSS COMES AT A TIME WHEN PRIMERICA CORP A NEW YORKBASED FINANCIAL SERVICES COMPANY THAT OWNS THE SMITH BARNEY SHEARSON BROKERAGE FIRM IS WORKING ON COMPLETING ITS 4 BILLION TAKEOVER OF TRAVELERS THE DEAL IS EXPECTED TO CLOSE BEFORE YEAR END PRIMERICA ALREADY OWNS 27 OF TRAVELERS IN A STATEMENT PRIMERICA SAID THE THIRDQUARTER LOSS AT TRAVELERS WILL HAVE NO IMPACT ON ITS OWN EARNINGS ON THE NEW YORK STOCK EXCHANGE YESTERDAY TRAVELERS CLOSED AT 37875 DOWN 125 CENTS PRIMERICA CLOSED AT 48 DOWN 25 CENTS SEPARATELY TRAVELERS HAS BEEN HIT BY A NUMBER OF SHAREHOLDER LAWSUITS CHALLENGING THE PRIMERICA TAKEOVER AS BEING UNFAIR TO TRAVELERS SHAREHOLDERS TRAVELERS SHAREHOLDERS ARE CONCERNED THAT PRIMERICA WILL SCALE BACK THE TRAVELERS DIVIDEND NOW 160 A SHARE TO THE PRIMERICA RATE NOW 50 CENTS A SHARE TRAVELERS SAYS IT WILL VIGOROUSLY DEFEND THE ACTIONS ANALYSTS DO NOT EXPECT THE LAWSUITS TO DELAY THE TRANSACTION 9310140071 931014 INTERNATIONAL FINKELSTEIN UNVEILS IN CHINA HIS VERSION OF OPENDOOR POLICY MACY FORMER CHAIRMAN'S STORE IS PART OF THE GROWING LIST OF RETAILERS IN THE COUNTRY BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL CANTON CHINA EDWARD FINKELSTEIN FORMER CHAIRMAN OF RH MACY & CO OPENED HIS FIRST SPORTSWEAR BOUTIQUE IN CHINA ON FRIDAY AND IMMEDIATELY CAME FACETOFACE WITH HIS BOISTEROUS NEW CUSTOMERS WITHIN MINUTES OF THE RIBBONCUTTING CEREMONY THE CANTON STORE WAS JAMMED WITH SHOPPERS AND CURIOUS ONLOOKERS WOMEN MADE A BEELINE FOR THE CHAMBRAY DRESSES AND DENIM JEANS WHILE THEIR CHILDREN FINGERED NEAT STACKS OF SNOWYWHITE TENNIS SWEATERS AND COLORFUL KNIT TOPS MEN TOTING CELLULAR PHONES GROUND OUT CIGARETTES ON THE STORE'S POLISHED GRANITE FLOORS WHILE RIFLING THROUGH STACKS OF NEATLY PRESSED DRESS SHIRTS IN THEIR WAKE AN AGHAST MYRA FINKELSTEIN EDWARD'S WIFE SCOOPED CIGARETTE BUTTS INTO A PAPER TOWEL THE FINKELSTEINS ARE THE LATEST IN A SMALL BUT GROWING LIST OF INTERNATIONAL RETAILERS WHO HAVE THROWN OPEN THEIR DOORS TO CHINA'S INCREASINGLY ACQUISITIVE MASSES OTHER US COMPANIES WITH RETAIL OUTLETS IN CHINA INCLUDE NIKE INC AND PLAYBOY ENTERPRISES INC CLOTHES FROM AMERICAN DESIGNER DONNA KARAN WILL GO ON SALE AT A DKNY BOUTIQUE IN SHENZHEN NEAR HONG KONG THIS MONTH MR FINKELSTEIN'S NEW STORE CALLED THE AMERICAN PLACE IS ON BEIJING ROAD CANTON'S MAIN SHOPPING THOROUGHFARE IN THE PAST YEAR BEIJING ROAD HAS EMERGED AS A CENTER FOR MODERATELY PRICED SPORTSWEAR BOUTIQUES MOST ARE OPERATED BY HONG KONG RETAILERS INCLUDING GIORDANO FORTUNE DUCK AND RENO THE 68YEAROLD MR FINKELSTEIN REFUSED TO SAY HOW MUCH HIS FAMILY HAD INVESTED IN THE STORE BUT HE SAID THE BUSINESS PLAN CALLS FOR HIS CHINA RETAILING OPERATION TO TURN A PROFIT BY THE END OF ITS SECOND YEAR DURING THE STORE'S FIRST TWO DAYS OF BUSINESS IT MET ITS TARGETS TAKING IN ABOUT US700 OF SALES PER SQUARE FOOT THE FAMILY INTENDS TO OPEN FIVE OR SIX MORE SHOPS IN CHINA OVER THE NEXT TWO YEARS A 4000SQUAREFOOT SITE ACROSS THE ROAD FROM THEIR FIRST STORE HAS ALREADY BEEN SECURED MITCHELL FINKELSTEIN WHO IS ONE OF EDWARD'S SONS AND WHO ONCE COORDINATED ASIAN PRODUCTION FOR MACY'S OWN CLOTHING LABELS TAPPED HIS FORMER NETWORK OF HONG KONGBASED SUPPLIERS TO PRODUCE APPAREL FOR THE NEW STORE EDWARD FINKELSTEIN DISMISSED SUGGESTIONS THAT THE FAMILY'S CHINA VENTURE IS INTENDED TO REVIVE HIS REPUTATION TARNISHED BY RH MACY'S DECISION TO SEEK PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IN 1992 I HAD TWO BAD YEARS AND 42 GOOD YEARS HE SAID IT WASN'T FUN BEING IN BANKRUPTCY BUT I DON'T THINK I NEEDED TO DO THIS TO SHOW I KNOW HOW TO BE A MERCHANT 9310140070 931014 POLITICS & PEOPLE RON BROWN HIS OWN WORST ENEMY BY ALBERT R HUNT A VETERAN MASSACHUSETTS POLITICIAN NOT SO LONG AGO WAS HORRIFIED AT THE CONDUCT OF A LESS SAVVY COLLEAGUE WHO WAS INDICTED FOR BRIBERY IMAGINE TAKING MONEY FROM A STRANGER THAT STORY COMES TO MIND IN THE CURRENT CONTROVERSY OVER ALLEGATIONS THAT COMMERCE SECRETARY RON BROWN CONSPIRED WITH A SHADOWY VIETNAMESE FIGURE TO HELP LIFT THE TRADE EMBARGO AGAINST VIETNAM IN RETURN FOR A SECRET 700000 PAYMENT THE REASON THE CHARGE PROBABLY IS PHONY IS THAT MR BROWN IS TOO SAVVY TO TAKE MONEY FROM A STRANGER BUT THE REASON IT STILL MAY BE THE SECRETARY'S DOWNFALL IS THAT IT DOESN'T SEEM AT ODDS WITH THE RON BROWN WHO FOR THE PAST DECADE HAS EPITOMIZED THE PART OF WASHINGTON POLITICAL CULTURE THAT AUTHOR AND JOURNALIST BROOKS JACKSON CALLS HONEST GRAFT THE WORLD OF THIS CHARMING SARTORIALLY SPLENDID LAWYERLOBBYIST IS ONE OF MONEY CONNECTIONS INFLUENCE PEDDLING AND ETHICAL INSENSITIVITY THESE ARE ALL THE ELEMENTS IN THE CHARGE BY LY THANH BINH A VIETNAMESE EXPATRIATE NOW LIVING IN FLORIDA THAT THE COMMERCE SECRETARY LAST YEAR AGREED TO HELP VIETNAM IN RETURN FOR SECRET PAYMENTS TO BE DEPOSITED IN A SINGAPORE BANK THE TWO OTHER KEY FIGURES IN THE ALLEGED DEAL WERE NGUYEN VAN HAO A FORMER VIETNAMESE GOVERNMENT OFFICIAL BOTH BEFORE AND AFTER THE 1975 FALL OF SAIGON AND MARC ASHTON A FRIEND OF RON BROWN'S WHO SUPPOSEDLY PUT THE DEAL TOGETHER RON BROWN MET THREE TIMES WITH THEM AND MR ASHTON'S SISTERINLAW DESCRIBED AS A CLOSE PERSONAL FRIEND OF THE COMMERCE SECRETARY WHO LIVES IN A WASHINGTON APARTMENT HE OWNS THE FIRST MEETING WAS RIGHT AFTER THE ELECTION THE SECOND AFTER MR BROWN WAS SELECTED FOR THE CABINET POST IN DECEMBER AND THE LAST WHILE HE WAS COMMERCE SECRETARY A FLORIDA GRAND JURY AND CAREER JUSTICE DEPARTMENT PROSECUTORS ARE TAKING THE CHARGES SERIOUSLY BUT THERE ARE GLARING GAPS FOR STARTERS IT'S ALL SECOND OR THIRDHAND MR BINH WHO HAD A FALLING OUT WITH MR HAO ON THIS DEAL NEVER MET RON BROWN ALSO KNOWLEDGEABLE SOURCES ABOUT VIETNAM INSIST THAT MR HAO'S CLOUT THERE HAS BEEN EXAGGERATED IT'S DOUBTFUL HE HAD AUTHORITY TO CUT ANY BIG DEALS THE MORE LIKELY SCENARIO IS THAT MESSRS ASHTON AND HAO SAW A CHANCE TO MAKE SOME EASY MONEY BY TRADING ON RON BROWN MR ASHTON DELIVERED HIS FRIEND TO MEET WITH THE VIETNAMESE WHO REPORTED BACK THAT THIS CLINTON INTIMATE COULD WIRE A DEAL MONEY MAY HAVE BEEN DEPOSITED IN A SINGAPORE BANK THE ODDS THOUGH ARE THAT IT WAS DESTINED TO END UP IN THE POCKETS OF MR ASHTON AND MR HAO SO WHY WON'T THE STORY GO AWAY FIRST BECAUSE RON BROWN HASN'T TOLD THE TRUTH LAST SPRING A SPOKESMAN DENIED THAT HE KNEW MR HAO AND MR BROWN OVER THE SUMMER PRIVATELY GAVE THE SAME ASSURANCES TO REPORTERS IT WAS ONLY AFTER THE MIAMI HERALD REVEALED THERE WERE THREE MEETINGS INCLUDING ONE WHILE HE WAS IN THE CABINET THAT THE COMMERCE SECRETARY ADMITTED ANYTHING NOT ONLY DID HE MEET MR HAO ON THESE OCCASIONS BUT HE EVEN SENT HIM CHRISTMAS GREETINGS MOREOVER RON BROWN CAN'T ESCAPE HIS OWN PAST IN PARTICULAR THE DECADE HE SPENT AT PATTON BOGGS & BLOW THIS HIGHPOWERED LAW FIRM'S CURRENCY IS THE NEXUS OF CAMPAIGN CONTRIBUTIONS AND CONNECTIONS CONFLICT OF INTEREST IS AN OXYMORON TODAY THE FIRM HAS MORE THAN A DOZEN HEALTHRELATED CLIENTS SOME WITH DIRECTLY CONFLICTING AIMS INSURANCE INTERESTS AND TRIAL LAWYERS HOSPITALS AND TOBACCO COMPANIES RON BROWN AFTER SERVING AT THE URBAN LEAGUE AND AS A TOP AIDE TO SEN EDWARD KENNEDY ADJUSTED COMFORTABLY TO THIS CULTURE ONE OF HIS FIRST BIG CLIENTS WAS HAITI THEN RULED BY DICTATOR BABY DOC DUVALIER THIS IS WHERE HE MET MR ASHTON WHO BILLED HIMSELF AS AN INVESTMENT ADVISER TO BABY DOC BEFORE THAT PETTY TYRANT WAS OVERTHROWN WASHINGTON IS FULL OF POWERFUL LAWYERS AND LOBBYISTS BUT THE BREED THAT LIVES ON POLITICAL FUND RAISING AND THE ATTENDANT INFLUENCE IS DIFFERENT AT A RECENT LUNCH HOSTED BY TOMMY BOGGS RON BROWN'S SENIOR PARTNER AT THE LAW FIRM AND THE CROWN PRINCE OF THE POLITICAL MONEYCHANGERS LOBBYIST DUFFY WALL POINTEDLY WARNED CURRENT DEMOCRATIC PARTY CHAIRMAN DAVID WILHELM THAT IF PRESIDENT CLINTON DIDN'T KNOCK OFF CRITICISM OF LOBBYISTS SOME CAMPAIGN COFFERS WOULD DRY UP AFTER MR BROWN BECAME DEMOCRATIC NATIONAL CHAIRMAN IN 1989 HE ARTFULLY MIXED HIS POLITICAL AND LEGAL BUSINESS A BROWNAFFILIATED COMPANY AND THE LAW FIRM FOR EXAMPLE GOT LUCRATIVE BUSINESS UNDER CONTROVERSIAL CIRCUMSTANCES WITH NEW YORK CITY MR BROWN AWARDED THE 1992 CONVENTION TO NEW YORK ETHICAL CONTROVERSY CONTINUED TO HOUND HIM AFTER HE WAS NAMED COMMERCE CHIEF DURING HIS CONFIRMATION HEARINGS WHEN ASKED WHETHER HIS EXTENSIVE LOBBYING AND FUNDRAISING ACTIVITIES SENT THE WRONG SIGNAL GIVEN CANDIDATE CLINTON'S CAMPAIGN AGAINST WASHINGTON INFLUENCE PEDDLERS THE NOMINEE COUNTERED IT SENDS THE RIGHT MESSAGE A REPLY THAT SENT CHILLS DOWN THE SPINES OF TOP CLINTON ADVISERS THEN MR BROWN WAS FORCED TO CANCEL HIS 10000AHEAD APPRECIATION GALA DURING THE INAUGURAL CEREMONIES WHEN IT PROVED AN EMBARRASSMENT TO THE PRESIDENTELECT IT'S THIS BACKDROP THAT GIVES HIS CURRENT CRITICS MORE CREDENCE SOME OF IT IS UNFAIR RIGHTWINGERS HAVE SEIZED ON THIS TO SCUTTLE NORMALIZATION WITH VIETNAM AND SOME REPUBLICANS WENT TO MAKE PARTISAN CAPITAL BUT THE BROWN ALLEGATIONS ARE IRRELEVANT TO OUR VIETNAM POLICY WHERE NORMALIZATION IS LONG OVERDUE AND THOSE SMUG REPUBLICANS FORGET THE MYRIAD ETHICAL LAPSES DURING THEIR TENURE RANGING FROM ED MEESE TO THE BUSH CAMPAIGN'S USE OF HIGHLEVEL OPERATIVES LAST YEAR WHO ALSO WERE FOREIGN LOBBYISTS WITH PRESSING ISSUES BEFORE THE ADMINISTRATION BY ANY MEASUREMENT THE ETHICAL STANDARDS OF THE CLINTON PRESIDENCY ARE SUPERIOR TO ITS TWO PREDECESSORS' THE WHITE HOUSE PUBLICLY IS STANDING BEHIND THE COMMERCE SECRETARY PRIVATELY HOWEVER THERE'S REAL CONCERN MR BROWN HAS BEEN TOLD HE HAS TO OFFER A FULLBLOWN PUBLIC ACCOUNTING SOON TOP AIDES JOHN PODESTA AND MARK GEARAN HAVE BEEN DISPATCHED TO HELP WITH DAMAGE CONTROL OTHER OFFICIALS WORRY THAT MR BROWN MAY NOT HAVE LEVELED WITH THEM EVEN MORE TROUBLING IS THE STRONG SUSPICION THAT THIS OPENS THE DOOR TO PROBES INTO SOME OF MR BROWN'S OTHER ACTIVITIES ONE WHITE HOUSE AIDE TALKS ABOUT A SECOND AND EVEN THIRD WAVE OF STORIES THE COMMERCE SECRETARY ALREADY IS SPENDING MOST OF HIS TIME FENDING OFF THIS CHARGE ANY NEW ATTACKS WOULD PARALYZE HIM POLITICALLY HIS DEFENDERS INSIST HE HAD A VERY CONVINCING SESSION THIS WEEK WITH THE FBI WHILE EMBITTERED FRIENDS SAY HE'S BEING UNFAIRLY SAVAGED BY THE PRESS IF INSTEAD THIS WERE ABOUT SAY EDUCATION SECRETARY DICK RILEY THEY CONTEND THE STORY WOULD DISAPPEAR THEY'RE RIGHT BUT MR RILEY NEVER WOULD HAVE CONSORTED WITH THE LIKES OF MARC ASHTON AND NGUYEN VAN HAO 9310140069 931014 BUSINESS BRIEF COLLEGE BOUND INC AUDITOR SETTLES COMPLAINT BY SEC WILL PAY PENALTY AN AUDITOR FOR COLLEGE BOUND INC THE TESTPREPARATION COMPANY THAT COLLAPSED LAST YEAR SETTLED A COMPLAINT BROUGHT BY FEDERAL REGULATORS GORDON K GOLDMAN WHO HANDLED THE COMPANY'S AUDITS BEFORE IT FILED FOR BANKRUPTCY PROTECTION IN APRIL 1992 AGREED TO PAY A 25000 PENALTY HE ALSO AGREED TO AN ADMINISTRATIVE PROCEEDING PERMANENTLY BARRING HIM FROM PRACTICING AS AN ACCOUNTANT IN FRONT OF THE SECURITIES AND EXCHANGE COMMISSION HE NEITHER ADMITTED TO NOR DENIED THE SEC'S ALLEGATIONS THE AGENCY SUED THE COMPANY BASED IN BOCA RATON FLA IN APRIL 1992 ACCUSING IT OF DEFRAUDING INVESTORS BY INFLATING RESULTS THE SEC ALLEGED IN ITS CIVIL COMPLAINT AGAINST MR GOLDMAN THAT HE FAILED TO DISCOVER INFLATED REVENUE AND OTHER MISSTATEMENTS MADE BY COLLEGE BOUND IN ITS FINANCIAL REPORTS 9310140068 931014 THE INTERACTIVE AGE MELDING OF THE BOLD AND STAID PROMISES A THUNDEROUS CLASH BY JOANN S LUBLIN AND JULIE AMPARANO LOPEZ STAFF REPORTERS OF THE WALL STREET JOURNAL THE MEGAMERGER OF BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC COULD CREATE MEGAMANAGEMENT HEADACHES THE REASON THE INEVITABLE CLASH FROM MELDING VASTLY DIFFERENT CORPORATE CULTURES THE GIANT REGIONAL PHONE COMPANY DESPITE INTENSE EFFORTS TO SHED ITS BUREAUCRATIC CULTURE RETAINS VESTIGES OF ITS PAST AS A REGULATED MONOPOLY EXPERTS AND EXECUTIVES SAY BUT TCI THE NATION'S BIGGEST CABLE OPERATOR HAS FLOURISHED BY BEING AN AGGRESSIVE ENTREPRENEUR THAT KEEPS A TIGHT REIN ON COSTS BELL ATLANTIC AND TCI EXECUTIVES COULD WELL LOCK HORNS OVER THE SPEED OF DECISIONMAKING CONFLICT RESOLUTION COST CUTTING AND CUSTOMER SERVICE MANAGEMENT SPECIALISTS SUGGEST AN EGO CLASH IS ALSO POSSIBLE BETWEEN THE STRONGWILLED HEADS OF THE TWO CONCERNS BELL ATLANTIC'S RAYMOND W SMITH WHO WOULD BE CHAIRMAN AND CHIEF EXECUTIVE OF THE COMBINED ENTITY AND TCI'S JOHN C MALONE WHO WOULD BECOME VICE CHAIRMAN JOHN MALONE IS AN INDUSTRIAL BUCCANEER RAY SMITH IS A TELCO TELEPHONE COMPANY GUY THE TWO MEN COULD BE A WONDERFUL SYNERGY BUT I CAN'T SEE MALONE PLAYING THE NO 2 ROLE SAYS GERALD R FAULHABER A PROFESSOR AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL WHO HAS WRITTEN ABOUT THE TELECOMMUNICATIONS INDUSTRY IN FACT MANY MORE MERGERS FAIL FOR CULTURALFIT REASONS THAN FOR BUSINESSFIT REASONS WARNS DEBORAH CORNWALL MANAGING VICE PRESIDENT OF KORN/FERRY ORGANIZATIONAL CONSULTING A BOSTON UNIT OF RECRUITERS KORN/FERRY INTERNATIONAL A BELL ATLANTICTCI DEAL COULD UNWIND IF THE TWO COMPANIES DON'T PLAN THE CULTURAL MARRIAGE EFFECTIVELY SHE ADDS BELL ATLANTIC HAS SPENT YEARS TRYING TO BREAK OUT OF ITS BUREAUCRATIC CULTURE AND PROMOTE INDEPENDENT THINKING MR SMITH THE BABY BELL'S CHAIRMAN INTRODUCED SOCALLED BELL ATLANTIC WAY SEMINARS IN 1989 AND INITIALLY CONDUCTED THE REEDUCATION HIMSELF LAST YEAR NEARLY 60000 EMPLOYEES OF THE PHILADELPHIA COMPANY WENT THROUGH THE 2 1/2DAY TRAINING THE SESSIONS INCLUDE A TEAMBUILDING EXERCISE IN WHICH PEOPLE SHOUT DIRECTIONS TO HELP A BLINDFOLDED WORKER HIT A TARGET WITH A VELCROTIPPED DART MR SMITH CONTENDS THE PROGRAM IS HELPING TO TRANSFORM HIS EMPLOYEES INTO PEOPLE WHO CAN COMPETE IN ALL SORTS OF BUSINESSES THE OLD APPROACH PERSISTS IN SOME QUARTERS HOWEVER EVEN WITH A DYNAMIC GUY LIKE RAY SMITH YOU DON'T TURN AROUND AN ORGANIZATION LIKE THAT OVERNIGHT SAYS T QUINN SPITZER PRESIDENT AND CHIEF EXECUTIVE OF KEPNERTREGOE INC A MANAGEMENT CONSULTING FIRM IN PRINCETON NJ A HIGHRANKING BELL ATLANTIC EXECUTIVE SAYS VETERAN MANAGERS STILL HESITATE TO REVAMP MARKETING PLANS AND CUT CUSTOMER PRICES WITHOUT GOING THROUGH PROPER CHANNELS BECAUSE THEY FEAR MAKING DECISIONS ON THEIR OWN BUT IN THE CABLE BUSINESS THIS EXECUTIVE CAUTIONS BELL ATLANTIC OFFICIALS WILL HAVE TO MOVE FAST OR THEY'RE GOING TO LOSE OPPORTUNITIES EVEN IF BELL ATLANTIC MAKES A SUCCESSFUL SHIFT TO A TEAM CULTURE IT MAY NOT FIT WELL WITH TCI'S MORE INDIVIDUALISTIC CULTURE THE DECISIONMAKING SPEED IN A TEAM CULTURE WHILE ARGUABLY FASTER THAN IN A BUREAUCRATIC CULTURE IS DEMONSTRABLY SLOWER THAN IN AN ENTREPRENEURIAL CULTURE NOTES MR SPITZER THE CONSULTANT I SEE THAT AS A MAJOR MAJOR ISSUE IN ITS AGGRESSIVE PURSUIT OF DEALS TCI IS HIGHLY ENTREPRENEURIAL AT THE CORPORATE LEVEL OBSERVES LARRY GERBRANDT SENIOR ANALYST FOR PAUL KAGAN ASSOCIATES INC A CABLEINDUSTRY RESEARCH FIRM IN CARMEL CALIF THIS IS A COMPANY WHICH FOR A NUMBER OF YEARS WAS BUYING A CABLE SYSTEM A WEEK IN ADDITION HE NOTES TCI EXECUTIVES ARE PROBABLY AMONG THE MOST FRUGAL OPERATORS IN THE BUSINESS CABLE COMPANIES TYPICALLY EXCEL AT MANAGING COSTS BUT THEIR CUSTOMER SERVICE IS ASTONISHINGLY BAD ADDS WILLIAM BANE A VICE PRESIDENT AND TELECOMMUNICATIONS SPECIALIST AT MERCER MANAGEMENT CONSULTING IN WASHINGTON THE OPPOSITE IS TRUE FOR PHONE COMPANIES HE NOTES BOTH BELL ATLANTIC AND TCI HAVE A LOT TO LEARN FROM EACH OTHER HE SUGGESTS A MARRIAGE WITH TCI WOULD CREATE AN ENTIRELY NEW CULTURE AT BELL ATLANTIC CONTENDS ROBERT L TOWNSEND A BELL ATLANTIC VICE PRESIDENT WHO WAS RECENTLY HIRED FROM HOME SHOPPING NETWORK TO DEVELOP THE BABY BELL'S FORAY INTO CABLE PROGRAMMING WE'RE CREATING A NEW BUSINESS AND WITH THAT COMES A NEW CULTURE HE SAYS BUT RATHER THAN FORGE A NEW CULTURE SOME TCI EXECUTIVES MAY SIMPLY HEAD FOR THE EXIT SIGN MR SMITH COULD LOSE SOME KEY PEOPLE BECAUSE THEY WANT A MORE ENTREPRENEURIAL BUSINESS ENVIRONMENT SUGGESTS MR SPITZER IF YOU LOSE THE ENTREPRENEURIAL SPIRIT OF TCI HE SAYS THE MERGER WITH BELL ATLANTIC COULD RUN INTO SOME REAL PROBLEMS IN THE PAST SOME BABY BELL DIVERSIFICATION EFFORTS RAN AGROUND PARTLY BECAUSE TRADITIONBOUND MANAGERS RESISTED CHANGE IN 1986 NYNEX CORP ACQUIRED INTERNATIONAL BUSINESS MACHINES CORP'S COMPUTER RETAIL STORES AND IT SNARED JAMES N TURNER AN IBM VETERAN TO RUN THE RETAIL OPERATION BUT HE QUIT LESS THAN TWO YEARS LATER MR TURNER SAID HE WANTED TO PURSUE OTHER INTERESTS BUT SOME FORMER COLLEAGUES SAY HE WAS FED UP WITH INCESSANT SKIRMISHING WITH EXECUTIVES ON THE TELEPHONE SIDE WHO FOUGHT TO BLOCK THE NEWCOMERS FROM IBM THE ENTRENCHED OPPOSITION DOOMED THE DIVERSIFICATION CONTEND MANAGERS WHO OVERSAW THE DIVISION IN 1990 NYNEX SOLD THE UNPROFITABLE COMPUTER STORES 9310140067 931014 BUSINESS BRIEFS GERMANTOWN SAVINGS BANK BALA CYNWYD PA HAS HIRED ALEX BROWN & SONS INC AS AN ADVISER REGARDING A POSSIBLE ACQUISITION BY ANOTHER FINANCIAL INSTITUTION THE BANK HAD NO FURTHER COMMENT WESTINGHOUSE ELECTRIC CORP HAS BEEN AWARDED AN 88 MILLION CONTRACT TO SUPPLY AND INSTALL POWER GENERATION EQUIPMENT FOR ASOCIACION NUCLEAR ASCO OF BARCELONA SPAIN WESTINGHOUSE WILL SUBCONTRACT PART OF THE WORK SARA LEE CORP AGREED TO ACQUIRE VIKING COFFEE A COFFEE ROASTING CONCERN BASED IN FINLAND AND ITS TWO SUBSIDIARIES RICH COFFEE OY AND LUXUS KAFFEE AB TERMS WEREN'T DISCLOSED FIRST USA INC A FINANCIAL SERVICES COMPANY AGREED TO ACQUIRE MAGROUP INC A TUCSON ARIZ PROCESSOR OF CREDIT CARD TRANSACTIONS FOR 105 MILLION IN COMMON STOCK ARBOR DRUGS INC WILL ACQUIRE 10 DRUGSTORES FROM PRIVATELY HELD M&R DRUG STORES OF NEW BALTIMORE MICH FOR AN UNDISCLOSED AMOUNT THE ACQUISITION IS EXPECTED TO BE COMPLETED EARLY NEXT YEAR 9310140066 931014 WHO'S NEWS CORVAS INTERNATIONAL INC CORVAS INTERNATIONAL INC SAN DIEGO JAMES N WOODY WAS ELECTED A DIRECTOR OF THIS BIOPHARMACEUTICAL COMPANY HE FILLS ONE OF TWO VACANCIES CREATED BY THE RESIGNATIONS OF HUBERT JP SCHOEMAKER AND MICHAEL A WALL NO ONE WAS NAMED TO FILL THE REMAINING VACANCY DR WOODY 50 YEARS OLD IS SENIOR VICE PRESIDENT RESEARCH AND DEVELOPMENT AND CHIEF SCIENTIFIC OFFICER OF CENTOCOR INC 9310140065 931014 CREDIT RATINGS BCE INC MONTREAL STANDARD & POOR'S CORP LOWERED ITS SENIOR UNSECURED DEBT RATING ON THE BELL CANADA UNIT TO SINGLEAPLUS FROM DOUBLEAMINUS AND REMOVED THE RATING FROM CREDITWATCH THE DECISION WHICH AFFECTS 15 BILLION OF DEBT REFLECTS A LESS SUPPORTIVE REGULATORY ENVIRONMENT AND A NEED FOR THE COMPANY TO DEVELOP MEDIUMTERM STRATEGIES TO RAISE PROFITABILITY THE RATING AGENCY SAID A BELL CANADA SPOKESWOMAN SAID THE TELEPHONE COMPANY BELIEVES THE MARKET ALREADY REFLECTS S&P'S SEPT 6 DECISION TO PLACE BELL CANADA'S RATING ON CREDITWATCH ANY FURTHER IMPACT FROM THE DOWNGRADE ISN'T EXPECTED TO BE SIGNIFICANT SHE SAID GTE CORP STAMFORD CONN MOODY'S INVESTORS SERVICE INC LOWERED ITS LONGTERM DEBT RATING FOR GTE SOUTHWEST INC A UNIT OF GTE TO A2 FROM A1 ABOUT 812 MILLION IN DEBT WAS AFFECTED THE RATINGS AGENCY SAID INCREASING COMPETITION IN TELEPHONE NETWORK ACCESS ALONG WITH A CHALLENGING REGULATORY ENVIRONMENT WILL CONTINUE TO PUT PRESSURE ON THE COMPANY'S OPERATING PROFIT MARGINS AND CASH FLOW FOR THE INTERMEDIATE TERM OFFICIALS OF GTE SOUTHWEST WHICH PROVIDES TELECOMMUNICATIONS SERVICES TO PARTS OF TEXAS OKLAHOMA ARKANSAS AND NEW MEXICO COULDN'T BE REACHED FOR COMMENT 9310140064 931014 REVIEW & OUTLOOK EDITORIAL ASIDES GERMAN JUSTICE FAULTED GERMANY HAS BEEN RANTING WITH REASON ABOUT CRIME AGAINST GERMAN TOURISTS WHILE IN FLORIDA GOOD THING THOUGH THAT THESE THUGS AREN'T TRIED INSIDE THE GERMAN JUSTICE SYSTEM FIRST IT WAS ERICH HONECKER WHO GOT OFF NOW ALONG COMES THE GERMAN TENNIS FAN WHO SANK A KNIFE INTO THE BACK OF MONICA SELES RUINING HER CAREER FOR AT LEAST THE YEAR YESTERDAY A GERMAN COURT IN HAMBURG GAVE THE KNIFER A SUSPENDED TWOYEAR SENTENCE A VERY POOR PERFORMANCE 9310140063 931014 BUSINESS BRIEF HANSON PLC US SUBSIDIARIES ARE SUED BY ETL CRAIG CREDITORS CREDITORS OF CLOSELY HELD ETL HOLDINGS INC AND ITS CRAIG SYSTEMS CORP UNIT FILED A LAWSUIT IN US BANKRUPTCY COURT IN BOSTON AGAINST TWO US UNITS OF BRITAIN'S HANSON PLC ALLEGING FRAUDULENT ASSET TRANSFERS THE SUIT SEEKS MORE THAN 100 MILLION IN DAMAGES CRAIG AMESBURY MASS MAKES MILITARY MOBILE SUPPORT SHELTERS FOR COMMUNICATIONS EQUIPMENT ACCORDING TO THE COMPLAINT CRAIG SYSTEMS AND ITS PARENT HOLDING COMPANY ETL WERE ALLEGEDLY STRIPPED OF 30 MILLION TO 40 MILLION IN ASSETS AND SADDLED WITH LIENS ON THEIR REMAINING ASSETS WHEN HANSON SOLD THE COMPANIES TO ETL'S PREDECESSOR COMPANY EASTERN TECHNOLOGIES INC IN 1989 THE NATURAL CONSEQUENCE THE COMPLAINT SAID WAS TO CREATE A CORPORATION THAT COULDN'T PAY ITS DEBTS CRAIG SYSTEMS AND ETL FILED FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IN APRIL A SPOKESMAN FOR THE TWO HANSON UNITS HM HOLDINGS INC AND AMESBURY PROPERTY INC OF ISELIN NJ COULDN'T BE REACHED 9310140061 931014 WHO'S NEWS STANT CORP STANT CORP RICHMOND IND EDWARD O GAYLORD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF EOTT ENERGY CORP WAS ELECTED A DIRECTOR OF THIS MAKER OF FUEL TANK CAPS RADIATOR CAPS ENGINE THERMOSTATS CLAMPS AND OTHER AUTO PRODUCTS INCREASING BOARD MEMBERSHIP TO SIX 9310140060 931014 ECONOMY TAX RISE ON AIRLINE TICKETS IS PROPOSED BY ADMINISTRATION TO HELP PAY FOR NAFTA BY WILLAM MURRAY AND BOB DAVIS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON AS IF THE NORTH AMERICAN FREE TRADE AGREEMENT WASN'T IN ENOUGH TROUBLE IN CONGRESS THE ADMINISTRATION PROPOSED A TAX INCREASE ON AIRLINE TICKETS TO HELP PAY FOR THE TRADE ACCORD THE PROPOSAL IS ALREADY KICKING UP OPPOSITION IN THE AIRLINE INDUSTRY AND IS BOUND TO INCREASE CONSUMER RESISTANCE TO THE PACT WHICH WOULD LIBERALIZE TRADE WITH MEXICO AND CANADA OVER 15 YEARS INCLUSION OF THESE FEES WILL ONLY GIVE AMMUNITION TO OPPONENTS OF NAFTA SAID JAMES LANDRY PRESIDENT OF THE AIR TRANSPORT ASSOCIATION OF AMERICA IN A LETTER TO THE HOUSE WAYS AND MEANS COMMITTEE NAFTA IS ALREADY UNDER ATTACK BY MANY LAWMAKERS FOR ALLEGEDLY ENCOURAGING US COMPANIES TO MOVE TO MEXICO MAKING A TAX SO VISIBLE HANDS NAFTA CRITICS YET ANOTHER POPULIST ISSUE TO RALLY OPPOSITION MR LANDRY PREDICTED THAT IF THE TAX INCREASE IS ADOPTED THOUSANDS OF ADDITIONAL EMPLOYEES IN THE AIRLINE TRAVEL AND TOURISM INDUSTRIES NEED TO BE FURLOUGHED BECAUSE OF THE AIRLINE INDUSTRY'S PRECARIOUS FINANCIAL SITUATION DEPUTY US TRADE REPRESENTATIVE RUFUS YERXA OUTLINED THE ADMINISTRATION'S PROPOSAL AS PART OF A PLAN TO FILL A PROJECTED 23 BILLION BUDGET GAP OVER FIVE YEARS LEFT BY TARIFF CUTS ASSOCIATED WITH NAFTA THE ADMINISTRATION BELIEVES THAT THE MOST ATTRACTIVE ALTERNATIVE WOULD BE A VERY SLIGHT INCREASE IN PASSENGER FEES ASSOCIATED WITH BOTH AIRLINE AND SHIPPING TRAVEL THROUGH THE US HE TOLD THE COMMITTEE YESTERDAY MR YERXA POINTED OUT THAT A 10 FEE IS CURRENTLY ASSESSED ON PASSENGERS TO COVER CUSTOMS AND IMMIGRATION CHARGES THE TRADE OFFICIAL DIDN'T GIVE DETAILS ABOUT HOW MUCH OF AN INCREASE COULD BE REQUESTED BUT CONGRESSIONAL STAFFERS SAID IT WOULD LIKELY BE 5 PER PERSON ON INTERNATIONAL ROUTES WHICH COULD RAISE ABOUT 180 MILLION ANNUALLY THE WHITE HOUSE BUDGET OFFICE ENVISIONS A 210 MILLION TARIFF SHORTFALL IN THE FISCAL YEAR ENDING SEPT 30 1994 WHICH WOULD INCREASE TO 612 MILLION IN FISCAL 1998 MEANWHILE NAFTA RAN INTO ANOTHER POTENTIAL ROADBLOCK ONTARIO'S PREMIER BOB RAE TOLD THE PROVINCIAL PARLIAMENT THAT HIS GOVERNMENT PLANS TO CHALLENGE NAFTA IN THE COURTS FOR VIOLATING THE CONSTITUTIONAL DIVISION OF POWERS BETWEEN THE CANADIAN PROVINCES AND THE CANADIAN GOVERNMENT THE CANADIAN GOVERNMENT IS EXCEEDING ITS JURISDICTION MR RAE SAID OF NAFTA IT IS USING A TRADE NEGOTIATION TO INTRUDE DIRECTLY INTO IMPORTANT AREAS OF PROVINCIAL JURISDICTION REGARDING THE NAFTA TAX THE ADMINISTRATION IS EXPECTED TO MAKE A FORMAL PROPOSAL BY OCT 19 WHEN THE WAYS AND MEANS COMMITTEE TAKES UP PROPOSALS REGARDING NAFTA THE ADMINISTRATION IS PRESSING THE HOUSE TO VOTE ON NAFTA BEFORE THANKSGIVING MR YERXA SAID THAT THE TARIFF SHORTFALL COULD ALSO BE MADE UP BY CUTTING SPENDING AS SOME PROMINENT REPUBLICANS HAVE URGED BUT THE ADMINISTRATION SEEMS COMMITTED TO A FEE INCREASE INSTEAD HOUSE MAJORITY WHIP DAVID BONIOR THE MICHIGAN DEMOCRAT WHO IS LEADING THE HOUSE OPPOSITION TO NAFTA SAID I CAN'T IMAGINE THE REPUBLICANS ARE GOING TO BE ECSTATIC OVER THE TAX PROPOSAL REP BONIOR SAID HE THINKS MANY REPUBLICANS ASSUMED THE REVENUE LOSS WOULD BE MADE UP WITH SOME OFFSETTING SPENDING CUTS REPUBLICANS ARE GOING TO HAVE TO MAKE UP THE OVERWHELMING MAJORITY IF NAFTA IS TO BE APPROVED BY THE HOUSE 9310140059 931014 LEISURE & ARTS ON FILM PARADISE' FROM A WOMAN'S VIEW BY JULIE SALAMON WOMEN ARE ALWAYS COMPLAINING THAT THE WOMAN'S POINT OF VIEW IS RARELY PRESENTED IN MOVIES IT'S BEEN ARGUED THAT THIS SITUATION COULD BE FIXED IF ONLY MORE WOMEN WERE MAKING MOVIES EVEN THOUGH THE ASCENSION OF WOMEN TO PROMINENT POSITIONS AT THE MAJOR STUDIOS HASN'T NOTICEABLY IMPROVED THE CHARACTERIZATION OF FEMALE FILM CHARACTERS SO RUBY IN PARADISE COMES AS A HAPPY EVENT FOR THOSE OF US LOOKING FOR INTERESTING MOVIE WOMEN THIS INDEPENDENTLY PRODUCED PICTURE GETS INSIDE A YOUNG WOMAN'S PSYCHE WITH THE INSIGHT AND NUANCE OF A GOOD NOVEL BUT IT WAS WRITTEN DIRECTED AND EDITED BY A MAN VICTOR NUNEZ NO ONE COULD ACCUSE MR NUNEZ HOWEVER OF BEING PART OF THE PHALLOCRATIC POWER ELITE HIS MOST RECENT PICTURE A FLASH OF GREEN WAS RELEASED EIGHT YEARS AGO AND HE'S BEEN TRYING TO MAKE ANOTHER MOVIE SINCE HIS LIFE AS A STRUGGLING FILMMAKER INFORMS RUBY IN PARADISE THE STORY OF A YOUNG WOMAN WHO HAS MOVED FROM HER RURAL TENNESSEE HOME TO THE BEACH RESORT OF PANAMA BEACH FLA THE REDNECK RIVIERA SHE'S JUST STARTING OUT IN THE WORLD STARTING TO DISCOVER THE CONFLICT BETWEEN IDEALISM AND MAKING MONEY LEARNING THAT MOST OFTEN PEOPLE DON'T HAVE THE CHANCE TO CHOOSE HOWEVER MR NUNEZ'S LIFE AS A STRUGGLING FILM DIRECTOR DOESN'T EXPLAIN HOW HE GOT TO UNDERSTAND WOMEN SO WELL HE HAS GIVEN HIS HEROINE A WAY OF LOOKING AT THE WORLD THAT WILL SEEM VERY FAMILIAR TO ANY WOMAN WHO REMEMBERS THE TIME SHE LEFT HER FAMILY'S HOME RUBY'S AMBITIONS ARE VAGUE BUT POWERFUL SHE DOESN'T KNOW WHERE SHE'S GOING BUT SHE WANTS VERY MUCH TO GET THERE OUT ON HER OWN FOR THE FIRST TIME SHE HAS MUCH ON HER MIND MATTERS THAT RANGE FROM THE MINUTE HOW TO WEAR HER HAIR TO THE WEIGHTY WHAT'S THE MEANING OF LIFE ASHLEY JUDD WHO PLAYS RUBY IS MORE BEAUTIFUL THAN THE ORDINARY GIRL NEXT DOOR RAISING THE POSSIBILITY THAT MR NUNEZ IS JUST ANOTHER FILM DIRECTOR LOOKING FOR PRETTY STARLETS TO HAVE UNDER HIS COMMAND BUT NO MS JUDD WHO PLAYS ON THE TELEVISION SERIES SISTERS AND IS THE SISTER AND DAUGHTER OF COUNTRY SINGERS WYNONNA AND NAOMI JUDD SHOWS HERSELF TO BE A WONDERFULLY EXPRESSIVE ACTRESS THOUGH MR NUNEZ HAS RUBY PUT HER THOUGHTS INTO A DIARY TO LET US KNOW WHAT'S ON HER MIND MS JUDD HAS ALREADY TOLD US WITH HER FACE WHAT IS HAPPINESS WHAT DO I WANT WHY DID I SLEEP WITH RICKY MR NUNEZ HAS GIVEN HIS FILM THE DISTILLED EMOTIONALITY OF A FOREIGN FILM CHARACTERS UNABASHEDLY PHILOSOPHIZE AND FEEL AS THEY NEVER WOULD IN CONVENTIONAL AMERICAN MOVIES THIS IS NOT A MOVIE FOR PLOTNEEDY VIEWERS RUBY IS SUSCEPTIBLE TO EVERYTHING SHE SEES WHETHER IT'S THE PICTURES SHE STARES AT IN COSMOPOLITAN OR THE OCEAN HERE YOU COULD GET WASHED OUT TO SEA AND NOBODY WOULD KNOW WHERE TO LOOK WE SEE THE TACKY LANDSCAPE AS RUBY SEES IT A PLACE WHERE NATURE HAS BEEN OVERRUN BY NEON A PLACE FILLED WITH POSSIBILITY AND MYSTERY AND A LITTLE SAD BY EITHER INTERPRETATION SHE WORKS AT THE CHAMBERS BEACH EMPORIUM SELLING BEACH TOWELS AND BATHING SUITS WIND CHIMES AND DOLLS WEARING SKIRTS AND HATS MADE OF DYED SEA SHELLS WE DON'T HEAR MUCH ABOUT RUBY'S BACKGROUND EXCEPT THAT HER MOTHER DIED RECENTLY AND THAT HER FAMILY WAS RELIGIOUS AND OF MODEST MEANS WITHOUT HYPERVENTILATING MR NUNEZ MAKES IT CLEAR HOW IMPORTANT RUBY'S INDEPENDENCE IS TO HER SHE'S AS WARY OF THE NICE MAN WHO WANTS TO COOK FOR HER AND TAKE CARE OF HER AS SHE IS OF THE SLEAZY BOSS'S SON WHO WANTS HER TO TAKE CARE OF HIM SHE'S CONSTANTLY TESTING HER INDEPENDENCE ONE DAY SHE WALKS INTO A SHOPPING CENTER AND SHOPLIFTS A BAGFUL OF GOODS AT HOME SHE SPREADS HER HAUL OUT ONTO THE KITCHEN TABLE AND STARES AT IT THE SAME WAY SHE STARES AT COSMOPOLITAN TRYING TO FIGURE OUT HOW THE BOOTY RELATES TO HER WHEN SHE DOES SHE DRIVES TO A TRASH BIN AND TOSSES IT OUT THAT'S NOT THE LIFE FOR HER AS RUBY BECOMES MORE SELFPOSSESSED HAVING TRIED AND DISCARDED A COUPLE OF MEN AS WELL AS STOLEN DRESSES SHE WONDERS WHETHER SHE SHOULD HAVE CHOSEN A MORE CHALLENGING PLACE FOR SELFDISCOVERY BUT THIS IS THE WORLD I FOUND SHE SAYS AND I SUPPOSE THE QUESTIONS REMAIN THE SAME WHY ARE WE ALL OF US SO OFTEN LONELY AND AFRAID RUBY'S WORLD MAY BE SMALL BUT MR NUNEZ MAKES IT SEEM BIG IN THIS MOODY EVOCATIVE FILM WITH HER ANGEL'S CURLS AND MANIPULATIVE WAYS NICOLE KIDMAN IN THE THRILLER MALICE PLAYS THE KIND OF WOMAN WE'RE ACCUSTOMED TO SEEING IN MOVIES SHORT ON PSYCHOLOGY LONG ON LEG I CAN'T SAY MUCH MORE ABOUT HER BECAUSE THE ONLY WAY TO ENJOY THIS MOVIE AND IT IS QUITE POSSIBLE IS TO BLITHELY FOLLOW ITS TWISTS AND TURNS NO QUESTIONS ASKED THE MOVIE SEEMS AT FIRST TO BE ABOUT A SERIAL RAPIST ON AN ALLFEMALE COLLEGE CAMPUS BUT THIS TURNS OUT MAINLY TO BE AN EXCUSE TO SHOW A COUPLE OF PRETTY YOUNG GIRLS GETTING BRUTALIZED TO SET UP A GENERALLY SCARY ATMOSPHERE AND TO INTRODUCE THE MAIN CHARACTERS A BRILLIANT AND ARROGANT SURGEON ALEC BALDWIN A MILD SWEET COLLEGE PROFESSOR BILL PULLMAN AND HIS BEAUTIFUL WIFE MS KIDMAN ANNE BANCROFT SHOWS UP AS THE ECCENTRIC CHARACTER WHO ALWAYS SHOWS UP IN THIS KIND OF FILM VIDEO TIP MUCH AS I LIKED RUBY IN PARADISE IT OCCURRED TO ME THAT IT COULD BE SEEN AS THE BROODING INTELLECTUAL'S VERSION OF BEACH BLANKET BINGO I'VE ALWAYS WONDERED WHAT WAS ON ANNETTE FUNICELLO'S MIND 9310140057 931014 LEISURE & ARTS BOOKSHELF A YOUNG POET IN GAY PARIS BY RICHARD LOCKE WISDOM IS BETTER THAN WIT & IN THE LONG RUN WILL CERTAINLY HAVE THE LAUGH ON HER SIDE WROTE JANE AUSTEN THE ENGLISH NOVEL'S TRIUMPHANT MISTRESS OF DIALECTICAL DELIGHTS BUT EVEN IN THIS APPARENTLY SELFCRITICAL EVANGELICAL REMARK SHE RECONCILES HER WARRING PARTIES WIT AND WISDOM IN THAT FINAL IMAGE OF A LAUGHING GODDESS ATHENA JANE AUSTEN'S NOVELS CERTAINLY PROCLAIM THE NECESSARY INTERDEPENDENCE OF WIT AND WISDOM EVEN AS THEY SATIRIZE THE EXCESSES OF EACH AT ONCE QUESTIONING AND CONFIRMING THE CLASSIC TERMS OF OUR EXPERIENCE SUCH GREAT WRITERS CONFOUND OUR CATEGORIES AND DESTROY SIMPLE DICHOTOMIES THEIR WORKS DISPLAY THE PROBLEMATIC INTERPENETRATION OF SUCH FAMILIAR BINARY PAIRS AS BODY AND MIND SENSUAL AND INTELLECTUAL AESTHETIC AND MORAL MASCULINE AND FEMININE ARTIST AND PHILOSOPHER SATIRIST AND PROPHET PLAYBOY AND PURITAN IN AMERICA HOWEVER OUR COMPLEX PURITAN LEGACY HAS OFTEN LED US TO ENVISION A MANICHAEAN BATTLE BETWEEN WIT AND WISDOM BETWEEN THE CLAIMS OF SELF AND THOSE OF SOCIETY WE'RE QUICKER TO TRUST A TOUGH ANGRY OR ECSTATIC PROPHET THAN AN URBANE CONVERSATIONALIST WE TEND TO PREFER BLAKE OR WHITMAN TO BYRON OR POPE MELVILLE AND HEMINGWAY TO JAMES OR PROUST FOR US WISDOM MUST BE NAKED TRAILING CLOUDS OF GLORY OR CLAD IN HOMESPUN IT NEVER WEARS SILK IT NEVER JOKES IT NEVER PUNS IT'S NEVER MERELY WITTY IT CAN CERTAINLY BE CONFESSIONAL THE PATRON SAINTS OF THIS ARE SYLVIA PLATH AND ROBERT LOWELL BUT NEVER MERELY CONVERSATIONAL YES BUT THEN THERE'S JAMES MERRILL AT 66 AMONG OUR MOST DECORATED AND PROLIFIC POETS WITH 11 BOOKS OF VERSE TWO NOVELS TWO PLAYS A COLLECTION OF ESSAYS AND NOW A REMARKABLE MEMOIR A DIFFERENT PERSON KNOPF 271 PAGES 25 MR MERRILL IS A UNIVERSALLY ACKNOWLEDGED MASTER OF LYRICAL AUTOBIOGRAPHICAL AND SOCIALLY EVOCATIVE POETRY AT ONCE DESCRIPTIVE AND DRAMATIC AND YET HE IS EQUALLY CELEBRATED AS THE AUTHOR OF THE 560PAGE THREEPART EPIC ON OCCULT THEMES A SERIES OF CONVERSATIONS WITH THE DEAD THE CHANGING LIGHT AT SANDOVER JUST REISSUED LIKE HIS SELECTED POEMS 19461985 IN PAPERBACK BY KNOPF MR MERRILL'S WORKS AFFIRM THE TENSE FRUCTIFYING INTERDEPENDENCE OF WIT AND WISDOM OF SOCIAL AND INTIMATE LIFE OF CHILDHOOD MEMORY AND COSMOPOLITAN CONVERSATION THE KEY IS THE SPEAKING VOICE NOT DECLAIMING OR PROCLAIMING NEVER PUBLIC BUT NEVER SOLITARY SOLIPSISTIC THE VOICE OF A MAN SPEAKING TO MEN WITH GREAT WIT COMPASSION WARMTH AND A KIND OF DEMOCRATIC CULTURAL ELITISM MUCH ADO ABOUT ART LITERATURE OPERA TRAVEL THIS SON OF THE FOUNDER OF THE WORLD'S LARGEST BROKERAGE FIRM MERRILL LYNCH WAS RICH SINCE THE AGE OF FIVE WHEN UNBREAKABLE TRUSTS WERE ESTABLISHED FOR HIM AND HIS TWO HALFSIBLINGS RICH BUT FAR FROM SECURE HE IS FAMOUSLY THE CHILD OF A BROKEN HOME HIS PARENTS SEPARATED WHEN HE WAS 11 WHO BECAME THE POET OF HOUSE AND HOME DOMESTIC MEMORY AND MELANCHOLY OVERCOME AS A YOUNG MAN HE ONCE SAID IN A PUN WHICH HIS FRIENDS THOUGHT WAS SELFDELUSION THANK GOODNESS I COME FROM POOR PARENTS IN HIS MEMOIR HE EXPLAINS MY PARENTS' VALUES HAD BEEN FORMED LONG BEFORE THEY HAD MONEY BUT WE'RE EXPECTED TO GET THE OTHER POINT AS WELL HIS MOTHER'S AND FATHER'S DEFICIENCIES AND STRENGTHS AS PARENTS AND HIS RESPONSE TO THESE FORM A CENTRAL THEME OF HIS MEMOIR IT IS AMONG OTHER THINGS AN EXCELLENT ACCOUNT OF AN ENLIGHTENED PSYCHOANALYSIS IN THE DARKEST 1950S A PROCESS OF SELFKNOWLEDGE THAT ENABLED THE YOUNG POET TO BECOME INDEED A DIFFERENT PERSON FROM THE ONE HIS PARENTS OR HE HIMSELF HAD THOUGHT HE WAS AS THE BOOK BEGINS IN 1950 MR MERRILL IS 24 ABOUT TO SEEK A NEW LIFE FOR HIMSELF IN EUROPE HE IS SOMETHING OF A SOCIAL BUTTERFLY TERRIFIED OF SOLITUDE CALLOW NAIVE CRIPPLINGLY DEPENDENT ON HIS LOVER FOND OF VERSE THAT IS CHASTE CRYPTIC MELODIOUS INFINITELY SAD AFTER 15 MONTHS FINALLY LIVING ALONE IN ROME HE BEGINS PSYCHOANALYSIS AND AFTER 30 MONTHS ABROAD HE RETURNS TO NEW YORK A PROFOUNDLY DIFFERENT PERSON READY TO EMBARK ON HIS LIFE'S WORK AND LOVE NOT THAT THIS NARRATIVE IS EVER A RELENTLESSLY INTERIOR MONOLOGUE THE BOOK IS FULL OF SOUNDS AND SIGHTS OF PARIS ATHENS MALLORCA ISTANBUL SALZBURG AND ESPECIALLY ROME DOZENS OF CHARACTERS PASS THROUGH FRIENDS FROM LAWRENCEVILLE AMHERST AND GREENWICH VILLAGE A LOCAL POLICEMAN A LEARNED ROMAN COUNT SOUTHERN COLLEGE GIRLS ON TOUR LITERARY LIGHTS FROM ALICE B TOKLAS TO KIMON FRIAR AND WH AUDEN ASSORTED DIVAS FLAGSTAD CALLAS SCHWARZKOPF AND GREAT SIGHTS ESPECIALLY THE MOSAICS AT RAVENNA AND TO ENLARGE AND DEEPEN THE BOOK FURTHER AT EACH CHAPTER'S END MR MERRILL ADDS AFTERTHOUGHTS COMMENTS GOSSIP SHOP TALK THE WIT AND WISDOM OF THE 66YEAROLD THE CONTINUITIES AND CONTRASTS OVER THE PAST 40 YEARS IN THE LIFE OF THE HOMOSEXUAL COMMUNITY A ND OF THIS GENIAL MEMBER OF IT ARE MOST THOUGHTFULLY AND CANDIDLY PORTRAYED CANDOR GRACEFUL UNCRUEL BUT UNCOMPROMISED BY NOSTALGIA OR RESENTMENT OR CONVENTIONAL ARTICULATION IS CLEARLY ONE OF MR MERRILL'S CHIEF SOCIAL AND MORAL IMPERATIVES THE PORTRAIT OF HIS LOVING SEDUCTIVE MANIPULATIVE AND ANXIOUS MOTHER IS MASTERLY BUT WE ALSO SEE HIS FATHER AND SENSE HIS LEGACY MY FATHER DESPISED SECRECY DYMYSTIFICATION HAD BEEN THE KEY TO HIS OWN GREAT SUCCESS NO MORE MUMBOJUMBO FROM HARVARD MEN IN PANELED ROOMS LET THE STOCK MARKET'S WORKINGS HENCEFORTH BE INTELLIGIBLE EVEN TO THE SMALL INVESTOR I WAS VISIBLY SHARING IN THE PROFITS OF SUCH OPENNESS AND SO ARE WE 9310140056 931014 INTERNATIONAL BRIEF MARUBENI CORP JAPANESE CONCERN TO REPORT A LOSS ON ITS MONEY TRUSTS MARUBENI CORP ONE OF JAPAN'S LEADING GENERAL TRADING COMPANIES SAID IT WILL DECLARE A 23 BILLION YEN 2171 MILLION EXTRAORDINARY LOSS FROM ITS TOKKIN OR SPECIFIED MONEY TRUSTS FOR THE FISCAL FIRST HALF ENDED SEPT 31 MARUBENI SAID IT WOULD WRITE DOWN THE LOSSES FROM THE TRUSTS AS A STEP IN CONSOLIDATING ITS SPECIFIED MONEY TRUSTS IN ADDITION TO THE WRITEDOWN MARUBENI SAID IT IS PROJECTING FURTHER EXTRAORDINARY LOSSES OF SEVERAL BILLION YEN IN TERMS OF VALUATION LOSSES ON SECURITIES THE COMPANY WILL ALSO CLOSE RELATED OR AFFILIATED COMPANIES THAT ARE NO LONGER PROFITABLE IN ORDER TO PROTECT ITSELF FROM INCURRING FURTHER LOSSES BUT AN OFFICIAL AT MARUBENI WOULD NOT ELABORATE ON WHAT COMPANIES MIGHT BE SLATED FOR SHUTDOWN HOWEVER MARUBENI SAID IT WILL NOT CHANGE ITS EARNINGS FORECASTS FOR THE FISCAL YEAR ENDING MARCH 31 1994 9310140055 931014 LEISURE & ARTS OPERA CITY OPERA PREMIERE GIVES HIGH NOTES TO SEX SYMBOL BY MANUELA HOELTERHOFF NEW YORK JUST THE OTHER DAY SOMEONE STOLE A DRESS ONCE WORN BY MARILYN MONROE FROM A MANHATTAN WAREHOUSE MAYBE WHEN THE THIEF IS CAUGHT HE OR SHE SHOULD BE MADE TO SIT THROUGH EZRA LADERMAN'S MARILYN AT THE NEW YORK CITY OPERA A WELLINTENTIONED HOMAGE TO THE SEX GODDESS THAT IS LONG ON SENTIMENT AND SHORT ON DRAMA MARILYN WOULD COOL THE ARDOR OF THE MOST DEMENTED FAN COMMISSIONED BY CITY OPERA MARILYN WAS THE FIRST OF AN EXHAUSTING TRIO OF PREMIERES BY ELDERLY AMERICAN COMPOSERS FEATURED LAST WEEK FOR REASONS THAT ARE NOT VERY CLEAR AS A 50TH ANNIVERSARY CELEBRATION THE OTHER WORKS WERE LUKAS FOSS'S EPIC REVISION OF GRIFFELKIN HIS 1955 FAIRY TALE ABOUT A LITTLE DEVIL WHO COMES TO EARTH AND ESTHER A BIBLICAL BEHEMOTH BY 81YEAROLD HUGO WEISGALL WHICH THE SAN FRANCISCO OPERA PREVIOUSLY CANCELED CLAIMING BUDGET PROBLEMS MARILYN PRESENTS THE ACTRESS AS A VICTIM OF VERY GREEDY MEN WHO IGNORED THE QUESTING WOMAN LOST UNDERNEATH LAYERS OF MAKEUP THIS MARILYN JUST WANTS A NICE HUSBAND WHO READS POETRY A BABY AND A HOUSE WITH A PICKET FENCE CRUELLY FORCED TO BECOME A SUPERSTAR SHE INGESTS HALF THE CONTENTS OF A DRUG STORE EVERY NIGHT AFTER FRUITLESS SESSIONS WITH HER THERAPIST DURING THE DAY EVEN A LARGE STUFFED CAT NAMED DIDO IS BRIEFLY DEPLOYED TO UNDERSCORE THE OPERA'S LEITMOTIF OF A LONELY QUEEN OF THE SILVER SCREEN ABANDONED BY UNWORTHY RETAINERS MARILYN CLUTCHES THE BEAST TO HER HEART AFTER FLEEING FROM ONE OF THOSE PESKY PHOTOGRAPHERS WHO WILL NOT LET STARS GO ABOUT THEIR DAYS IGNORED LIKE EVERYBODY ELSE THAT MARILYN WAS ALSO A GRASPING IMMENSELY AMBITIOUS FUNNY NARCISSIST WHO TRANSFORMED HERSELF FROM A SMALL TOWN FRUMP NAMED NORMA JEAN BAKER INTO AN ABSURDLY OVERRATED GAUDY ICON THAT GLITTERS STILL IS NOT A CHARACTER DIMENSION THIS RA CHOOSES TO EXPLORE THIS MARILYN NEEDS SOME WIND BLOWING UP HER SKIRT AS IN THE FAMOUS SHOT OF THE FILM GODDESS STANDING OVER A SUBWAY GRATING BOTH ACTS TAKE PLACE IN THE LAST FEW MONTHS BEFORE MONROE'S DEATH AT AGE 36 IN 1962 WITH FLASHBACKS INTERRUPTING HER DRUGGY END NORMAN ROSTEN THE LIBRETTIST GOT TO KNOW MARILYN AFTER SHE MADE THE SEVEN YEAR ITCH AND THE PROGRAM NOTES TELL US THEY BECAME FRIENDS CERTAINLY THE LIBRETTO HE WROTE FOR HIS OTHER FRIEND MR LADERMAN IS FILLED WITH AFFECTION AND A GREAT DEAL OF UNDERSTANDING FOR HER WAYWARD NEEDY WAYS MAYBE TOO MUCH UNDERSTANDING FOR THE PURPOSES OF AN OPERA WHICH MUST REACH OUT FROM THE INTIMACY OF MEMORY TO INHABIT A LARGER FORUM AT THIS POINT AFTER ALL THERE IS VERY LITTLE ABOUT MONROE THAT IS NOT KNOWN AND MESSRS LADERMAN AND ROSTEN DON'T SURPRISE US AS THEY SEND MONROE ON HER VARIOUS APPOINTMENTS FOR WHICH SHE IS ALWAYS LATE WITH TWO MOGULS A BOYFRIEND A SENATOR A HUSBAND ALL OF THEM PLATITUDINOUS AND UNWORTHY IN SOME WAY OBVIOUS REFERENCES TO HISTORIC FIGURES WHOM MARILYN ENTERTAINED IN VARIOUS CAPACITIES SAY THE KENNEDYS ARTHUR MILLER OR JOE DIMAGGIO ARE AVOIDED EVEN SO THE OPERATIC MARILYN STICKS SO CLOSELY TO THE HISTORIC MARILYN THAT WE ARE OFTEN LEFT WONDERING WHY WE ARE SITTING THROUGH AN OPERA ABOUT SOMEONE WE CAN READ ABOUT MORE COMFORTABLY AT HOME IN NORMAN MAILER'S EGREGIOUS BOOK OR MR ROSTEN'S OWN MARILYN THE UNTOLD STORY MARILYN THE OPERA IS SKILLFUL WITHOUT BEING PARTICULARLY IMAGINATIVE OR ENTERTAINING AN OPERATIC HEROINE IS SURELY FREE TO WANDER INTO THE REALMS OF FANTASY MEETING UP WITH JUST FOR EXAMPLE THE MARQUIS DE SADE OR HILLARY RODHAM CLINTON ONLY THROUGH IMAGINATIVE RECONSTRUCTION CAN A FAMILIAR PERSONALITY TAKE ON A NEW LIFE ONSTAGE THINK OF HOW BORING MARIA STUARDA WOULD BE WITHOUT THE BOGUS MEETING WITH QUEEN ELIZABETH INVENTED BY DONIZETTI NEITHER DOES THE MUSIC OF MR LADERMAN WHO HEADS THE YALE SCHOOL OF MUSIC TRANSFORM THE ORDINARY ASPIRATIONS EXPRESSED IN THE LIBRETTO INTO SOMETHING MEMORABLY PERSONAL IT'S A BUSINESSLIKE SCORE MELDING 20THCENTURY ELEMENTS FROM JAZZ TO ATONAL CLASHES THESE ARE BRIEF TO MOVIE MUSIC TOO MANY WORDS ARE SET RIGHT ON THE NOTE LEAVING LITTLE GROUND FOR MELODIC BLOOM WHATEVER EMOTION MARILYN HAS IT STAYS ON THE SURFACE BUT IS SOMETIMES INTENSIFIED BY THE POETIC DESIGNS OF JEROME SIRLIN MR SIRLIN WHO IS NEW TO THE COMPANY TOOK ON THE TASK OF STAGING ALL THREE NEW OPERAS FOR 175000 ABOUT WHAT THE MET SPENDS ON A FEW SUITABLY CAPACIOUS GOLDFRINGED OUTFITS FOR LUCIANO PAVAROTTI USING SCRIMS AND SLIDE PROJECTIONS HE AND JEFF DAVIS THE LIGHTING DESIGNER SUGGESTED A WORLD AS SHIMMERINGLY INSUBSTANTIAL AS THE CELLULOID FANTASIES OF HOLLYWOOD MR SIRLIN WASN'T AS INVENTIVE WITH ESTHER OR GRIFFELKIN BUT MARILYN'S DEATH ON A SYMBOLIC ALTAR TO BEAUTY PLACED AGAINST A STARFILLED FIRMAMENT WAS PRETTIER THAN ANYTHING KATHRYN GAMBERONI GOT TO SING AS MM SHE LOOKED THE PART NO SMALL ACHIEVEMENT IN THESE DAYS OF DOUGHNUTSHAPED LADIES BUT HER THIN VOICE PROVED AN UNCOMFORTABLE OPERATIC EQUIVALENT OF MONROE'S CHILDISH WHISPERS SUSANNE MARSEE AS MM'S HOUSEKEEPER AND PHILIP COKORINOS AS HUSBAND RICK HAD SYMPATHETIC MOMENTS MICHAEL REES DAVIS WAS A DAPPERLY VACUOUS SENATOR STUCK IN THE PIT HAL FRANCE CONDUCTED WHAT WAS EITHER A SMALL ORCHESTRA OR ONE NOT PLAYING VERY LOUDLY I THOUGHT MORE OF GRIFFELKIN A SETTING OF A FAIRY TALE MR FOSS HEARD BAFORE HE LEFT GERMANY IN THE '30S AND CAN'T GET OUT OF HIS HEAD BY NOW IT'S NEARLY AS LONG AS RHEINGOLD A FIDGETY CHILD NEAR ME HAD TO BE THREATENED AND THEN CARTED OFF AFTER THE SECOND INTERMISSION AN EVOCATION OF MOZART AND THE NEOCLASSICAL STRAVINSKY JAUNTILY CONDUCTED BY SCOTT BERGESON GRIFFELKIN HAS AMUSING MOMENTS MR FOSS JUST NEEDS TO BUY A SABER SAW FOR THE NEXT REVISION UNTIL THEN ONE COULD ENJOY A SINGING LETTER BOX AN ANNOYED STATUE AND TWO STONE LIONS ALL STIRRED TO LIFE BY GRIFFELKIN'S MAGIC POTION AND JONATHAN PAPE'S LIGHTHEARTED DIRECTION ROBIN TABACHNIK LOOKED SPIFFY IN GRIFFELKIN'S HORNS AND CURLY TAIL AND THE MANY NICE PERFORMANCES INCLUDED REVEKA MAVROVITIS STATUE DIANA DANIELE GRANDMA DEVIL JOSEPH MCKEE DOPEY POLICEMAN AND HELEN YU WHO SANG LUMINOUSLY AS THE LITTLE GIRL GRIFFELKIN CHEERS UP BY REVIVING HER DEAD MOM WITH HIS MAGIC DROPS COULD HE SPRINKLE A FEW ON ESTHER EVEN WITH AN INTENSE FULLTHROATED PERFORMANCE BY LAUREN FLANIGAN AS THE JEWISH QUEEN OF ANCIENT PERSIA WHO PREVENTED THE WHOLESALE SLAUGHTER OF HER PEOPLE THE OPERA NEVER FULLY STIRRED TO LIFE IT'S INTENTIONALLY OLDFASHIONED IN FORM LOOKING BACK TO MEYERBEER IN ITS HEROIC THEME HUGE SCALE AND FUSTIAN LIBRETTO REPLETE WITH CARTOONISH VILLAINS AND REFERENCES TO HEATED THIGHS BUT THE MELODIES THAT OCCASIONALLY STIRRED MEYERBEER'S CARDBOARD CREATIONS INTO SOME SEMBLANCE OF LIFE DON'T COME EASILY TO MR WEISGALL WHO MATURED IN A BERGBLIGHTED DAY WHEN YOU NEVER WROTE A TUNE IF YOU COULD POSSIBLY AVOID IT MR WEISGALL HAS OBVIOUSLY SPENT MUCH TIME THINKING ABOUT HIS TOPIC BUT HIS DRY ACADEMIC LANGUAGE ISN'T SUITED TO LENDING MUCH VARIETY TO HUMAN FEELING HIS MOST FORCEFUL WRITING PROVED TO BE NOT FOR THE SINGERS BUT THE MUSICIANS IN THE PIT WHO PLAYED WITH UNUSUAL LUSTER AND ENTHUSIASM FOR JOSEPH COLANERI EVEN SO THERE WERE EFFECTIVE MOMENTS ONE CAME EARLY ON WHEN ESTHER STILL A SHY THING GIRDS HERSELF TO LEAVE HER VILLAGE FOR XERXES'S COURT AND THE INCREASINGLY POWERFUL MUSIC TELLS US SHE'LL DO JUST FINE LATER THERE WAS AN AWESOME BIT OF GESCHREI FOR THE TWO VILLAINS HAMAN AND HIS WIFE ZERESH BLASTED WITH AMUSING RELISH BY ALLAN GLASSMAN AND JOYCE CASTLE YOU FEARED FOR THEIR WIGS AND FUTURE VOCAL HEALTH EUGENE PERRY HAD PRESENCE AS XERXES ESPECIALLY IN A RARE LYRICAL MOMENT WHEN HE GENTLY PRODS ESTHER TO ASK OF HIM WHATEVER SHE WANTS ROBYNNE REDMON SANG STALWARTLY AS EXQUEEN VASHTI DEPOSED BY XERXES BECAUSE SHE WOULDN'T TAKE HER CLOTHES OFF AT A RECEPTION HE HOSTED MAYBE HE HATED HER UGLY DRESS IT WAS NOTHING ANYONE WOULD WANT TO STEAL 9310140054 931014 THE INTERACTIVE AGE CAN THE EXALTED VISION BEOME REALITY TOMORROW'S TV MAY MAKE YOU A VIEWERDOER BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL IF ALL THE BUZZWORDS ARE REAL AND TELEVISION AND TELEPHONES REALLY DO MERGE INTO ONE FUTURISTIC HIGHTECH INTERACTIVE MULTIMEDIA NETWORK WHAT'S GOING TO BE ON TV HOW ABOUT A KNOCKOFF OF ALFRED HITCHCOCK'S REAR WINDOW IN WHICH YOU PLAY A VOYEURISTIC APARTMENT DWELLER WITH A SELECTION OF 14 DIFFERENT WINDOWS TO PEEP THROUGH OR A GAME SHOW WHERE YOU'RE THE CONTESTANT AND THE HOST SCOLDS YOU BY NAME WHEN YOU GOOF UP GEE FRED THAT WASN'T VERY SMART OR A SHOW WHERE A CHILDREN'SBOOK AUTHOR WRITES AN OPENING LINE AND KIDS AROUND THE COUNTRY CONTRIBUTE THE REST OF THE STORY THESE AND HUNDREDS OF OTHER INTERACTIVE PROJECTS ARE IN THE WORKS FROM STARRYEYED DEVELOPERS PLANNING FOR A DAY WHEN TELEVISION REALLY DOES BECOME INTERACTIVE RIGHT NOW THEY'RE EKING OUT ONLY MODEST REVENUES FROM THE NARROW INTERACTIVE NICHES THAT ALREADY EXIST SUCH AS CDROM AND ONLINE COMPUTER SERVICES BUT INTERACTIVE DEVELOPERS ARE CELEBRATING THE NEWS OF BELL ATLANTIC CORP'S PLANNED DEAL WITH TELECOMMUNICATIONS INC THEY SAY THE DEAL MIGHT FINALLY LEGITIMIZE THEIR STILLFLAKY VENTURES AND BRING THEIR VISION OF MASSMARKET INTERACTIVE TV A LITTLE CLOSER I TURNED ON THE RADIO AND HEARD THEM TALKING ABOUT INTERACTIVE MULTIPLAYER GAMES SAYS BILL LINN A SPOKESMAN FOR ONE OF THE LEADING PLAYERS IN PRECISELY THAT MARKET SIERRA ONLINE INC ITS ONLINE SERVICE THE IMAGINATION NETWORK LETS COMPUTER BUFFS AROUND THE COUNTRY COMPETE IN SUCH GAMES AS THE SHADOW OF YSERBIUS A ROLEPLAYING FANTASY INVOLVING QUESTS CLERICS AND WIZARDS I SAID FINALLY WERE GOING TO GET THIS CONCEPT IN THE MAINSTREAM' SAYS MR LINN HERE'S A LOOK AT SOME OTHER INTERACTIVE PROGRAMS THAT COULD BE COMING TO YOUR LIVING ROOM SOON IF THE FEVERISH MULTIMEDIA INDUSTRY'S DREAMS COME TRUE IF A LITTLE SAN FRANCISCO COMPANY CALLED BRILLIANT MEDIA HAS ITS WAY MUSIC VIDEOS OF THE FUTURE WILL LET YOU STROLL INTO A RECORDING STUDIO OPEN ALL THE DOORS AND LISTEN TO A DOZEN MUSICIANS JAMMING CLICKING ON YOUR MOUSE YOU CAN MIX AND MATCH THE MUSICIANS YOU WANT TO HEAR LATER THIS YEAR BRILLIANT MEDIA WILL RELEASE A MACINTOSH COMPACT DISK THAT OFFERS ITS HIGHTECH ONEUPPING OF MTV TENTATIVELY ENTITLED EXPERIENCE IT FEATURES ROCK STAR PETER GABRIEL AND A CAST OF MUSICIANS FROM AROUND THE WORLD AMONG ITS UNUSUAL TRICKS THE DISK WILL HAVE PICTURES AND SOUND BITES FROM OFFBEAT INTERNATIONAL INSTRUMENTS SUCH AS THE DARABUKA AN EGYPTIAN DRUM YOU CAN HEAR THE DIFFERENT SOUNDS IT MAKES BY CLICKING A CURSOR ON VARIOUS PARTS OF THE DRUM WHILE BRILLIANT MEDIA ONLY MAKES PROGRAMS FOR COMPUTERS TODAY IT HAS LONGTERM VISIONS OF REACHING MILLIONS OF HOUSEHOLDTV SETS WE KNOW THAT'S WHERE IT'S GOING TO ULTIMATELY END UP SAYS FOUNDER STEVE NELSON THERE'S A HUGE ADULT AUDIENCE THAT HASN'T BEEN REACHED TO MAKE VOYEUR ONE OF THE FIRST INTERACTIVE DRAMAS WITH A SEMBLANCE OF A REAL PLOT PRODUCER DAVID RIORDAN SHOT ACTUAL VIDEO FOOTAGE OF TV ACTORS AND OVERLAID THEM ONTO SETS CREATED WITH COMPUTER GRAPHICS THE RESULT A SINISTER TALE OF A ROSS PEROTLIKE PRESIDENTIAL CANDIDATE WITH FOUR RELATIVES WHO DON'T WANT HIM TO RUN THEY ALL LIVE IN THE MANSION NEXT DOOR TO YOU THE VIEWER WHO SETS THE PLOT IN MOTION BY PEEKING INTO DIFFERENT WINDOWS MR RIORDAN A PRODUCER FOR HOLLAND'S PHILIPS ELECTRONICS NV MADE THE PROGRAM FOR A PHILIPS GADGET CALLED CDI THE GADGET ISN'T A BIG SELLER AND INTERACTIVE DRAMAS DON'T YET HAVE BIG HOLLYWOOD PULL SO MR RIORDAN HAD TO FIND HIS STARS BELOW THE RANKS OF ROSEANNE AND SEINFELD VOYEUR STARS ROBERT CULP I SPY AS THE CANDIDATE AND GRACE SABRISKIE TWIN PEAKS AS HIS WIFE MR RIORDAN READ THE NEWS ABOUT BELL ATLANTIC AND TCI AND HOPED IT MEANT A BRIGHT FUTURE FOR VOYEUR AND OTHER MOVIES OF ITS ILK AS THESE CONGLOMERATIONS COME TOGETHER THERE'LL BE A REAL THIRST FOR TITLES TO PUT ON THAT HIGHWAY HE SAYS ONE MORNING MARTIN WOKE UP IN HIS OWN BED IN HIS OWN ROOM IN HIS OWN HOUSE ON ANOTHER PLANET BEGAN A RECENT STORY BY CHILDREN'S AUTHOR FRANK ASCH BUT IT WAS NORMA ROESCH A 13YEAROLD FROM FAIRVIEW PARK OHIO WHO ENDED THE TALE MARTIN HEARD A LOUD ROARING NOISE AND THE SKY TURNED A STRANGE SHADE OF GREEN WAS THE ALIEN COMING TO FIND HIM MR ASCH AND NORMA COLLABORATED OVER THE SCHOLASTIC NETWORK A COMPUTER SERVICE FOR TEACHERS AND STUDENTS AVAILABLE ON AMERICA ONLINE IT OFFERS CLASSROOM PROJECTS QUIZZES GAMES AND A CHANCE TO TEAM UP ON STORIES WITH PUBLISHED AUTHORS SCHOLASTIC INC A NEW YORK CHILDREN'S PUBLISHER LAUNCHED THE NETWORK TWO WEEKS AGO AND SAYS IT HAS SEVERAL HUNDRED SCHOOLS ON LINE THE COMPANY SAYS IT SEES THE NETWORK AS MERELY A FIRST STEP TOWARD THE INEVITABLE DAY WHEN INTERACTIVE TV ARRIVES WE'D LOVE TO SEE SCHOOLS AND KIDS AT HOME HAVE NEARUNIVERSAL ACCESS TO THESE KINDS OF EDUCATIONAL MATERIALS AND SERVICES SAYS JOHN LENT THE NETWORK'S DIRECTOR HE ADDS OPTIMISTICALLY THIS TECHNOLOGY CAN LEVEL THE PLAYING FIELD FOR KIDS IN RURAL AREAS AND INNER CITIES AND GIVE THEM ACCESS TO ALL THE RESOURCES THAT EVERY OTHER KID HAS ALL THE MULTIMEDIA CHEERLEADERS HAVE HOPES THAT THE INTERACTIVE COUCH POTATOES OF THE FUTURE WILL BE USING THEIR SETS TO SHOP LIKE DEMONS ONE VISION OF EXACTLY HOW THAT MIGHT WORK CAN BE FOUND AT A YOUNG SAN FRANCISCO COMPANY CALLED MUSICNET INC MUSICNET SUBSCRIBERS CAN PICK UP THE TELEPHONE DIAL THE NETWORK AND LISTEN TO PREVIEWS OF VIRTUALLY ANY ALBUM AVAILABLE IN THE US PUNCH IN THE RIGHT NUMBERS AND TOWER RECORDS WILL PUT THE ALBUM IN THE MAIL SUBSCRIBERS CAN ALSO CHECK FOR PERSONAL PHONE MESSAGES ABOUT NEW RELEASES AND CONCERTS BY THEIR FAVORITE ARTISTS AN EARLY PILOT OF MUSICNET BEGAN LAST MONTH IN SACRAMENTO CALIF FOUNDER JOHN ATCHESON IS CAGEY ABOUT HIS LONGTERM PLANS BUT ACKNOWLEDGES THAT THEY ENVISION EVENTUALLY EXPANDING TO VIDEO THE ADVENT OF INTERACTIVE TVS THAT WOULD GIVE HIM A WIDE MARKET WILL ACCELERATE SUBSTANTIALLY IF THE BELL COMPANIES AND CABLE COMPANIES CONTINUE TO WORK TOGETHER HE SAYS THIRD DEGREE A NEW INTERACTIVE GAME SHOW PRESENTS YOU WITH LITTLE MORAL QUANDARIES SUCH AS YOU FIND A WALLET FULL OF MONEY ON THE STREET DO YOU A GIVE IT TO THE POLICE B KEEP IT C TAKE OUT THE MONEY AND GIVE THE WALLET TO THE POLICE YOU PICK YOUR CHOICE AND YOUR FELLOW CONTESTANTS GUESS WHAT YOU PICKED THEN THE THIRD DEGREE HOST CONGRATULATES YOU OR SCOLDS YOU BY NAME ON THE OUTCOME THE GAME'S MAKER PFMAGIC IS A SMALL SAN FRANCISCO COMPANY IN AN OLD WAREHOUSE NEIGHBORHOOD CROWDED WITH HOPEFUL INTERACTIVE DEVELOPERS NOW KNOWN AS MULTIMEDIA GULCH CREATIVE DIRECTOR ROB FULOP THINKS GAME SHOWS ARE ONE OF THE FIRST CATEGORIES THAT WILL CATCH ON IN THE AGE OF INTERACTIVE TV IT'S TOTALLY AMERICAN HE SAYS AND IT'S ALREADY INTERACTIVE SEE RELATED ARTICLE EARLY ATTEMPTS SHOW BUYERS MAY BE LEERY WSJ OCT 14 1993 9310140053 931014 LEISURE & ARTS SHOOTING BOBWHITE QUAIL IN SOUTHERN COMFORT BY MICHAEL PEARCE CENTER TEXAS ONE MOMENT THE ENGLISH POINTER WAS NOTHING MORE THAN A BLUR THEN LITERALLY WITHIN THE BLINK OF AN EYE IT WAS AS IF HE HAD TURNED TO STONE NOT A MUSCLE WAS MOVING FROM THE TIP OF HIS 12 O'CLOCK TAIL TO THE END OF HIS NOSE WHICH WAS TURNED FACING THE WIND THAT CARRIED THE BELOVED SCENT THAT WAS HIS WHOLE REASON FOR BEING NEARBY A LONGHAIRED ENGLISH SETTER STOOD EQUALLY RIGID OBLIVIOUS TO THE SMELL BUT HONORING HIS COMPANION'S FIND FOR SEVERAL LONG SECONDS EARL LEDBETTER AND HIS TWO GUESTS STOOD EQUALLY STOIC AS THEY COMMITTED THE SETTING TO MEMORY FINALLY MR LEDBETTER FLANKED BY THE TWO GUNNERS FOLLOWED THE POINTER'S GAZE TOWARD A THICK TUFT OF BRIARS THOUGH IT WAS TOTALLY EXPECTED THE WHIRRING OF WINGS STILL STARTLED THE GUNNERS AS THE COVEY OF QUAIL SWARMED INTO THE AIR THE FOUR SHOTS THAT FOLLOWED BROUGHT THREE BIRDS TO THE GROUND THAT WAS SOME FINE FINE SHOOTIN' GENTLEMEN MR LEDBETTER DRAWLED GIVING EACH DOG A PAT ON THE HEAD TO RELEASE IT FROM ITS STILL SOLID POSITION HURRY UP AN' FETCH 'EM IN DOGS I'M SURE THESE GENTLEMEN WOULD LIKE TO DO THAT AGAIN THEY WOULD THERE'S SOMETHING UNDENIABLY SPECIAL ABOUT WING SHOOTING OVER POLISHED BIRD DOGS BUT SUCH OUTINGS TAKE ON A WHOLE NEW TWIST WHEN THE BIRDS ARE BOBWHITES DOWN IN DIXIE BIRD HUNTING HAS BEEN A STRONG CUSTOM IN THE RURAL SOUTH LITERALLY FOR AS LONG AS THERE'S BEEN A SOUTHERN UNITED STATES SAID JERRY WATERS PRESIDENT OF THE HAWKEYE HUNT CLUB WHERE MR LEDBETTER LED HIS GUESTS ON A WARM WINTER AFTERNOON A LOOK AT THE WRITINGS AND ART WORK OF THEIR TIME SHOW THAT MANY OF THE FOUNDING FATHERS OF THE US CONSTITUTION AND LATER THE CONFEDERACY SAW IT AS A VERY IMPORTANT ASPECT OF THEIR LIVES THAT SAME FEELING HAS BEEN PASSED FROM GENERATION TO GENERATION IN COUNTLESS SOUTHERN FAMILIES WHILE RUFFED GROUSE HUNTERS MUST PULL THEMSELVES THROUGH THICK BRIARS AND PHEASANT GUNNERS OFTEN MARCH FROM DAWN TO DARK THROUGH DENSE WEED PATCHES AND SWAMPS SOUTHERN QUAIL HUNTERS HAVE IT MUCH EASIER MANY HUNTS TAKE PLACE ON THE BACK OF A WELLTRAINED HORSE OR ON THE SEAT OF A MULEDRAWN WAGON WITH THE HUNTERS ONLY STEPPING DOWN WHEN IT'S TIME TO LOAD THEIR GUNS AND MOVE IN ON A POINT AT HAWKEYE GUNNERS WALK BUT THEY TAKE A LEISURELY PACE AS THEY WEND THEIR WAY BENEATH THE HIGH LONGLEAF AND LOBLOLLY PINES WHILE THEY ENJOY THE DOGWORK QUAIL MAY BE THE HEART OF THESE HUNTS BUT THE DOGS ARE CERTAINLY ITS SOUL EVEN IF IT WERE POSSIBLE THE IDEA OF BIRD HUNTING WITHOUT THE DOGS IS NEARLY IMPOSSIBLE TO COMPREHEND SAID MR LEDBETTER WHO GOT HIS DOGTRAINING START AS AN ALABAMA YOUNGSTER IN THE 1950S WATCHING THEM WORK POINT HONOR ANOTHER DOG'S POINT AND RETRIEVE IS WHAT DRAWS MOST OF US TO THE SPORT WITHOUT THEM THIS WOULD SIMPLY BE A SHOOT MR LEDBETTER'S DOGS LIKE THOSE OF MOST AVID SOUTHERN QUAIL HUNTERS FOLLOW GENTLE COMMANDS BETTER THAN MOST CHILDREN OBEY THEIR PARENTS BUT THERE IS NOTHING MECHANICAL ABOUT THEIR PERFORMANCE THEY ALL OBTAIN THE SAME RESULTS YET EACH DOG HAS ITS OWN PERSONAL TRAITS QUITE OFTEN OUR GUESTS WILL REQUEST A SPECIFIC DOG FOR A HUNT SAID MR WATERS THEY MAY NOT BE ABLE TO REMEMBER THE NAME OF THE GUIDE BUT THEY DANG SURE REMEMBER THE DOG AND SOME SPECIAL POINT OR RETRIEVE UNFORTUNATELY THANKS TO THE CHANGING FACE OF SOUTHERN AGRICULTURE THERE ARE FEWER AND FEWER PLACES IN DIXIE WHERE SUCH MEMORABLE DOG WORK CAN BE ENJOYED ONCE A LAND OF SMALL FARMS WITH INTERMIXED CROPFIELDS AND PASTURES THAT WERE SEPARATED BY IMPORTANT BRUSHY FENCELINES AND WEEDPATCHES THE MODERN SOUTH IS LARGELY AN UNBROKEN COMBINATION OF OVERGRAZED COW PASTURES AND TALL TIMBER THE TREES DENY CRUCIAL LIGHT TO THE HABITAT THE COWS SIMPLY DEVOUR IT LUCKILY THE SPLENDID TRADITION CARRIES ON AT A VARIETY OF SPRAWLING OPERATIONS LIKE MR WATER'S HAWKEYE QUAIL COVERS ARE AS CAREFULLY NURTURED HERE AS THE MANICURED GROUNDS THAT SURROUND THE POSH HEADQUARTERS AND LOCAL COVEYS ARE ROUTINELY SUPPLEMENTED WITH IMPORTED QUAIL THE OLDTIME SOUTHERN QUAIL HUNT MAY BE UNDER THE GUN SO TO SPEAK BUT IT JUST MANAGES TO LIVE ON GRANDLY HERE MR PEARCE IS AN OUTDOORS WRITER BASED IN NEWTON KAN 9310140052 931013 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9310140051 931014 INTERNATIONAL BRIEF DAIWA SECURITIES LTD JAPANESE COMPANY RAISES FORECAST FOR FISCAL 1ST HALF DAIWA SECURITIES LTD RAISED ITS FORECASTS FOR UNCONSOLIDATED EARNINGS FOR THE FISCAL FIRST HALF ENDED SEPT 30 BREAKING RANKS WITH ITS JAPANESE COMPETITORS WHO ALL ANNOUNCED DOWNWARD REVISIONS LESS THAN A MONTH AGO THE SECURITIES CONCERN PROJECTED PRETAX PROFIT OF 353 BILLION YEN 3332 MILLION UP 18 FROM THE PREVIOUS FORECAST OF 30 BILLION YEN FOR THE YEAREARLIER PERIOD DAIWA POSTED PRETAX PROFIT OF 18 BILLION YEN DAIWA CITED BETTERTHANEXPECTED RESULTS FOR COMMISSION INCOME PROFITS ON SALES FOR ITS OWN ACCOUNT AND FINANCIAL REVENUE AS THE REASON FOR THE REVISED FORECAST A COMPANY SPOKESMAN SAID DAIWA'S SUCCESS IN CUTTING COSTS WAS ANOTHER MAJOR FACTOR DAIWA ALSO POSTED A VALUATION LOSS OF 334 BILLION YEN ON ITS SECURITIES HOLDINGS AS OF SEPT 30 9310140049 931014 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN TURKEY ONE OF THE WEST'S STAUNCHEST ALLIES IN THE GULF WAR AGAINST IRAQ IS ADVOCATING LIFTING THE UNITED NATIONS EMBARGO AGAINST ITS MIDEAST NEIGHBOR TURKISH LEADERS SAY THAT AFTER IRAQ THEIR COUNTRY HAS BEEN HARDEST HIT BY THE UN SANCTIONS AND CAN NO LONGER TOLERATE THEM PRIME MINISTER TANSU CILLER WHEN SHE VISITS US LEADERS THIS WEEK WILL ARGUE THAT TURKEY DESERVES TO BE COMPENSATED FOR 5 BILLION IN LOSSES IN MOSCOW TALKS LAST MONTH RUSSIAN PRESIDENT BORIS YELTSIN AND MRS CILLER SAID THEY WOULD COORDINATE EFFORTS TO HAVE THE EMBARGO AGAINST IRAQ LIFTED MRS CILLER'S CAMPAIGN COULD GET A BOOST FROM A RECENT DECISION BY IRAQ TO DETAIL ITS BANNED WEAPONS PROGRAMS INCLUDING NAMES OF FIRMS THAT CONTRIBUTED TO THEM PRIOR TO THE EMBARGO THE UN DEMANDED THESE DISCLOSURES AS A CONDITION FOR LIFTING THE BAN ON IRAQI OIL EXPORTS GERMANY'S HEALTH MINISTRY ORDERED THE CLOSURE AND TOOK OVER THE FUNCTIONS OF THE FEDERAL HEALTH AGENCY IMPLICATED IN AIDSTAINTED BLOOD SUPPLIES IT ORDERED A PROBE OF GOVERNMENT CONDUCT IN THE 1980S WHEN SCORES OF HEMOPHILIACS WERE INFECTED BY BLOOD CONTAMINATED WITH HIV THE VIRUS THAT CAUSES AIDS HEMOPHILIACS ACCUSE THE GOVERNMENT OF COVERING UP 373 CASES OF PEOPLE CONTRACTING AIDS THROUGH THE TAINTED SUPPLIES AND OF DELAYS IN REQUIRING HIV SCREENING OF DONATED BLOOD THE MEXICAN GOVERNMENT MOVED TO QUELL AN EMBARRASSING DISPUTE ABOUT MEDIA CENSORSHIP BY NAMING A NEW FEDERAL RADIO AND TELEVISION REGULATOR THE AGENCY CHIEF MANUEL VILLA WAS SUCCEEDED BY ALEJANDRO MONTANO A REFORMER AND BECAME HEAD OF A NEW MIGRATION STUDIES INSTITUTE MR VILLA HAD BEEN ACCUSED OF TRYING TO PRESSURE A MEXICO CITY RADIO STATION TO CURB COVERAGE OF OPPONENTS OF THE INSTITUTIONAL REVOLUTIONARY PARTY IN THE 1994 PRESIDENTIAL CAMPAIGN THE PARTY HAS OFTEN BEEN CHARGED WITH QUESTIONABLE PRACTICES IN RULING MEXICO FOR SIX DECADES PIRACY OF COMPUTER SOFTWARE IN CHINA IS GROWING DESPITE THE GOVERNMENT'S PLEDGE TO UPHOLD GLOBAL COPYRIGHT RULES A US GROUP SAID IN BEIJING MORE THAN 90 OF THE SOFTWARE IN CHINA IS COPIED THE BUSINESS SOFTWARE ALLIANCE SAID WE HAVE SEEN ONLY LIMITED INSTANCES OF ENFORCEMENT IN CHINA IT SAID PIRACY HURTS NOT ONLY FOREIGN SOFTWARE SALES BUT CHINESE EFFORTS TO DEVELOP A SOFTWARE INDUSTRY CHINA REVISED ITS COPYRIGHT LAW LAST YEAR AND JOINED WORLD COPYRIGHT CONVENTIONS KANSAI INTERNATIONAL AIRPORT SCHEDULED TO OPEN IN OSAKA JAPAN NEXT SEPTEMBER WANTS TO CHARGE JUMBO JETS A LANDING FEE OF 9440 THAT WOULD BE 10 MORE THAN THE WORLD'S MOST EXPENSIVE FEE AT JAPAN'S NARITA AIRPORT KANSAI AND THE INTERNATIONAL AIR TRANSPORT ASSOCIATION REPRESENTING ABOUT 190 AIRLINES BEGAN TALKS ON THE PROPOSAL JAPANESE AND FOREIGN AIRLINES SAID THE BIG FEE WOULD HURT EARNINGS US CARRIERS SAID THE FEE IS WILDLY HIGH SWISS BUSINESS BANKRUPTCY FILINGS IN THIS YEAR'S FIRST NINE MONTHS CLIMBED 22 TO 4484 FROM A YEAR EARLIER THE FAILURES INCLUDED MORE OLDER FIRMS THAN LAST YEAR SAID CREDITREFORM A PRIVATE CREDIT INFORMATION AGENCY COMPANIES IN OPERATION FOR LESS THAN FIVE YEARS ACCOUNTED FOR 48 OF THE LATEST PERIOD'S INSOLVENCIES DOWN FROM 59 A YEAR EARLIER THOSE BETWEEN 5 AND 10 YEARS OLD ACCOUNTED FOR 25 UP FROM 20 FIRMS ESTABLISHED 10 TO 20 YEARS AGO ACCOUNTED FOR 17 UP FROM 14 AND COMPANIES OVER 20 YEARS OLD REPRESENTED 10 THE HIGHEST PERCENTAGE IN ALMOST A DECADE AND UP FROM 7 LAST YEAR KAZAKHSTAN'S PARLIAMENT BECAME THE FIRST OF FIVE FORMER SOVIET REPUBLICS TO RATIFY AN ECONOMIC AND MONETARY UNION TREATY WITH RUSSIA THE TREATY ALSO INVOLVING ARMENIA BELARUS TAJIKISTAN AND UZBEKISTAN WOULD COORDINATE TRADE BUDGET TAX AND REGULATORY POLICIES THE SMALLER REPUBLICS WOULD GIVE UP MONETARY CONTROL TO RUSSIA'S CENTRAL BANK KAZAKHSTAN HAS OLD RUSSIAN RUBLES THAT ARE NO LONGER VALID IN RUSSIA ITS TREATY RATIFICATION ALLOWS KAZAKHSTAN TO USE THE NEW RUSSIAN RUBLE AS SOON AS MOSCOW CAN PROVIDE ENOUGH BANKNOTES BUT WITH THE KAZAKH ECONOMY IN SHAMBLES NEGOTIATIONS ON MERGING MONETARY SYSTEMS WERE CONTINUING RUSSIA'S CENTRAL BANK SUPPORTS RAPID MONETARY UNION WITH KAZAKHSTAN SWAPPING RUBLES 1FOR1 BUT RUSSIAN OFFICIALS SAY THE KAZAKH RUBLE'S VALUE IS TWOTHIRDS OF ITS RUSSIAN COUNTERPART AND AN EVEN EXCHANGE WOULD BLOAT RUSSIA'S MONEY SUPPLY AND FUEL INFLATION RUSSIA IS FLOATING AN IDEA TO REQUIRE REPUBLICS TO MEET INFLATION AND BUDGETDEFICIT TARGETS BEFORE THEY COULD PARTICIPATE IN THE UNION TREATY PARIS'S TOURISM AGENCY WILL PROPOSE A LODGINGS SURTAX OF BETWEEN 1 AND 7 FRENCH FRANCS 18 CENTS AND 125 A DAY THE LEVY WOULD RAISE 17 MILLION TO FILL A REVENUE HOLE CREATED BY A DECLINE THIS YEAR OF AT LEAST 10 IN THE NUMBER OF PEOPLE VISITING THE FRENCH CAPITAL ABOUT 2000 PEOPLE THRONGED ABERDEEN HARBOR IN HONG KONG AFTER WORD SPREAD THAT A TRAWLER HAD NETTED A MERMAID A FISHERMAN RADIOED HE HAD CAPTURED A CREATURE WITH LONG HUMANLIKE HAIR A POINTY FACE AND NO LIMBS BUT THE BOAT NEVER SHOWED UP LEAVING THE CROWD WITH ONLY A RED HERRING 9310140048 931014 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/16 HIGH 2 LOW 2 NEAR CLOSING BID 2 1/2 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 89 DAYS 320 90 TO 239 DAYS 325 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 315 60 DAYS 326 90 DAYS CERTIFICATES OF DEPOSIT 253 ONE MONTH 256 TWO MONTHS 262 THREE MONTHS 271 SIX MONTHS 288 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 322 THREE MONTHS 322 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 306 60 DAYS 316 90 DAYS 315 120 DAYS 315 150 DAYS 315 180 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 TUESDAY OCTOBER 121993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 304 13 WEEKS 312 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 660 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 659 60 DAYS 669 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 9310140047 931014 BUSINESS BRIEF BIRMINGHAM STEEL CORP NET INCOME DROPPED 45 DURING FISCAL FIRST QUARTER BIRMINGHAM STEEL CORP BIRMINGHAM ALA SAID NET INCOME DROPPED 45 IN THE FIRST QUARTER OF FISCAL 1994 TO 37 MILLION OR 17 CENTS A SHARE REFLECTING SOARING COSTS FOR SCRAP METAL USED BY THE MINIMILL TO PRODUCE NEW STEEL THE EARNINGS INCLUDE A TWO CENTASHARE GAIN RESULTING FROM AN ACCOUNTING CHANGE IN THE YEAREARLIER PERIOD BIRMINGHAM HAD NET INCOME OF 67 MILLION OR 31 CENTS A SHARE SALES IN THE QUARTER ENDED SEPT 30 ROSE 14 TO 1276 MILLION FROM 112 MILLION IN THE PRIOR YEAR THE RESULTS ANNOUNCED SHORTLY AFTER MARKETS CLOSED FELL SHORT OF ANALYSTS' EXPECTATIONS OF 24 CENTS A SHARE A COMPANY SPOKESMAN SAID SCRAP COST AN AVERAGE 91 A TON IN THE FIRST QUARTER OF FISCAL 1993 COMPARED WITH AN AVERAGE 116 A TON IN THE QUARTER THAT JUST ENDED STEEL SELLING PRICES HAVE GONE UP ABOUT 6 A TON SINCE THE FOURTH QUARTER OF FISCAL 1993 BUT THE COMPANY SAID THIS WAS NOT ENOUGH TO OFFSET HIGHER RAW MATERIAL COSTS 9310140046 931014 REVIEW & OUTLOOK EDITORIAL THE NEXT SOMALIAS IT'S BEEN AN EXPENSIVE CLASS BUT SOMALIA HAS AT LEAST TAUGHT PRESIDENT CLINTON A LESSON ABOUT GEOPOLITICS WHILE HE'S ON THE SUBJECT MAYBE NOW HE'LL DEVOTE SOME TIME TO STOPPING THE SPREAD OF DANGEROUS WEAPONS CHINA DETONATED A NUCLEAR DEVICE LAST WEEK NORTH KOREA STILL WON'T LET THE UN INSPECT ITS NUCLEAR PROGRAM EVEN AS IT LOBS A TEST MISSILE TOWARD JAPAN AND DEVELOPS MATERIAL FOR TWO OR THREE BOMBS ACCORDING TO THE CIA MEANWHILE THE WHITE HOUSE HAS ANNOUNCED A POLICY THAT WILL MAKE IT EASIER NOT HARDER FOR MANY NATIONS TO DEVELOP BALLISTIC MISSILES MR CLINTON SAYS THIS ALL SOMEHOW ADDS UP TO A TOUGH NEW POLICY NOW WE GRANT THAT THESE ARE HARD PROBLEMS ESPECIALLY SINCE TECHNOLOGY IS BOUND TO SPREAD IN A COMPUTERCHIP WORLD YET IT MATTERS HOW FAST AND TO WHOM SOME TECHNOLOGIES SPREAD ESPECIALLY THE MISSILES AND NUKES THAT COULD THREATEN US TROOPS ALLIES OR AMERICA ITSELF EVEN A DELAY OF A FEW YEARS MAY GIVE OUR DEFENSE PLANNERS TIME TO DEVELOP RESPONSES WHICH IS WHY WE WORRY ABOUT THE DISCONNECT BETWEEN THE CLINTON TEAM'S RHETORIC AND POLICY RESPONDING TO THE CHINA TEST IT SAID THE US MIGHT NOW BEGIN TESTING NUKES AGAIN AS IF THIS WILL REASSURE JAPAN SOUTH KOREA AND OTHER US ALLIES WITHIN FIRING RANGE OF CHINA THIS IS THE SAME CHINA MOREOVER THAT THE CLINTON ADMINISTRATION IS COUNTING ON TO PERSUADE NORTH KOREA TO CHANGE ITS MIND ABOUT UN INSPECTIONS GOOD LUCK A SERIOUS POLICY WOULD INFORM CHINA THAT THE US WILL MEET ITS GROWING NUCLEAR THREAT TO THE REST OF ASIA THAT WOULD MEAN OFFERING MISSILE DEFENSES TO JAPAN KOREA AND ALSO TAIWAN WHICH CHINA FEELS IT OWNS THE POINT ISN'T TO PROVOKE CHINA BUT TO REASSURE JAPAN AND THE REST OF ASIA THAT THEY DON'T NEED TO GO NUCLEAR THEMSELVES INCREDIBLY THE US NOW SAYS IT WANTS TO SWAP MISSILE DEFENSES ONLY IN EXCHANGE FOR JAPANESE TRADE CONCESSIONS AS IF RICE IMPORTS ARE AS IMPORTANT AS KEEPING JAPAN NUCLEAR FREE AS FOR NORTH KOREA US DIPLOMACY IS ALSO FAILING WHICH IN ONE SENSE MAY BE JUST AS WELL THE CLINTON ADMINISTRATION WANTS THE NORTH TO AGREE TO UN INSPECTIONS THAT WILL SOMEHOW SAFEGUARD ITS REACTOR AND NUCLEAR REPROCESSING PLANTS THIS IS THE SAME UN NUCLEAR INSPECTORATE THAT ASSURED EVERYONE SADDAM HUSSEIN'S NUCLEAR FACILITIES WERE ALSO SAFE THE CLINTON TEAM ARGUES THAT EVEN THESE INSPECTIONS ARE BETTER THAN NOTHING BUT TELL THAT TO KIM IL SUNG SOME REGIMES ARE SIMPLY TOO CRAZY TO BE SAFE AND SOME TECHNOLOGIES TOO DANGEROUS TO BE SAFEGUARDABLE SUCH AS REPROCESSING WHICH CAN TURN SPENT NUCLEAR FUEL INTO PLUTONIUM THAT'S WHY THE BUSH ADMINISTRATION WORKED WITH JAPAN AND SOUTH KOREA TO GO BEYOND SIMPLE INSPECTIONS AND DEMAND INTRUSIVE SNAP SCRUTINY AND DISMANTLEMENT OF DANGEROUS ACTIVITIES IN BOTH NORTH AND SOUTH THE CLINTON STATE DEPARTMENT SEEMS PREPARED TO SETTLE FOR SOMETHING LESS AND NOT TO PUSH VERY HARD FOR THAT ITS LATEST SALLY WAS TO PERSUADE THE INTERNATIONAL ATOMIC ENERGY AGENCY IAEA THE SAME OUTFIT THAT MISJUDGED IRAQ TO VOTE 722 THAT NORTH KOREA WAS IN VIOLATION OF ITS TREATY OBLIGATIONS THOUGH WITHOUT LEVYING ANY SANCTIONS NO WHITE FLAG HAS YET BEEN SPOTTED IN PYONGYANG THE SAME STRANGE THINKING ABOUT SAFEGUARDS ALSO LIES BEHIND THE NEW US POLICY ON THE SPREAD OF ROCKET TECHNOLOGY AND NUCLEAR FUEL THE US NOW SAYS FOR EXAMPLE THAT IT WILL ALLOW THE EXPORT OF ROCKET TECHNOLOGY TO SOME NATIONS SO LONG AS IT IS FOR CIVILIAN USE SO IN ORDER TO KEEP SUCH NATIONS INDIA SPAIN BRAZIL AND SO ON FROM GETTING INTO THE MISSILEEXPORT BUSINESS WE ARE GOING TO GET INTO THE BUSINESS OURSELVES GET IT BUT AS RAND'S BRIAN CHOW POINTED OUT RECENTLY ON THESE PAGES THIS TECHNOLOGY SIMPLY DOESN'T MAKE ECONOMIC SENSE BECAUSE THERE'S NOT NEARLY ENOUGH OF A CIVILIAN MARKET AND ANYWAY IT'S IMPOSSIBLE TO SAFEGUARD ROCKETRY BECAUSE IT IS EASILY AND QUICKLY CHANGED FROM CIVILIAN TO MILITARY USE THAT'S WHY THE BUSH ADMINISTRATION STRUGGLED SUCCESSFULLY TO GET ARGENTINA SOUTH AFRICA AND TAIWAN TO DROP THEIR ROCKET PROGRAMS WHAT DOES MR CLINTON PLAN TO TELL THOSE COUNTRIES NOW OR RUSSIA WHICH IT LOBBIED TO STOP ITS MISSILE EXPORTS TO INDIA MR CLINTON HAS MADE NONPROLIFERATION A PILLAR OF HIS FOREIGN POLICY WHICH IS WORTHY ENOUGH BUT IT IS ONE OF THOSE SUBJECTS IN WHICH THE DEVIL IS IN THE DETAILS MR CLINTON CAN SAVE HIMSELF A CRISIS LATER BY ATTENDING TO THOSE TROUBLING DETAILS NOW 9310140045 931014 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 ABN AMRO BANK 150 MILLION OF SUBORDINATED DEPOSIT NOTES DUE OCT 15 2093 WAS PRICED AS 7125S AT 99178 TO YIELD 7184 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 110 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL FARM CREDIT BANK SYSTEM 100 MILLION OF NOTES DUE OCT 21 1996 PRICED AT PAR TO YIELD 42 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 13 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN BANK SYSTEM 125 MILLION OF MULTICOUPON STEPUP NOTES DUE OCT 20 2000 PRICED AT PAR TO YIELD 455 ACCORDING TO MCM CORPORATEWATCH IN OCTOBER 1994 THE YIELD RISES TO 5 IN OCTOBER 1996 THE YIELD RISES TO 52 AND IN OCTOBER 1998 THE YIELD RISES TO 529 THE NOTES NONCALLABLE FOR ONE YEAR WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO FEDERAL HOME LOAN MORTGAGE CORP 250 MILLION OF DEBENTURES THROUGH THE AGENCY'S SELLING GROUP TO YIELD 4147 THE DEBENTURES DATED OCT 21 HAVE A COUPON OF 4125 AND WERE PRICED AT 999375 INTEREST WILL BE PAID SEMIANNUALLY AND THE ISSUE WILL MATURE OCT 21 1996 THE DEBENTURES WILL BE AVAILABLE IN BOOK ENTRY FORM ONLY THROUGH THE FEDERAL RESERVE BANK SYSTEM IN 5000 INCREMENTS FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF STEPUP MEDIUMTERM NOTES DUE OCT 23 1998 PRICED AT PAR TO YIELD 438 ACCORDING TO MCM CORPORATEWATCH THE YIELD ON THE NOTES STEPS UP TO 538 ON OCT 23 1995 THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 57 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC GILLETTE CO 200 MILLION OF NOTES DUE OCT 15 2005 PRICED AS 575S AT 99677 TO YIELD 5788 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 53 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC HERTZ CORP 100 MILLION OF NOTES DUE OCT 15 2005 PRICED AS 6375S AT 99791 TO YIELD 64 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 112 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC LOEWS CORP 400 MILLION OF DEBENTURES DUE OCT 15 2023 PRICED AS 7S AT 97774 TO YIELD 7182 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 110 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P THE BONDS WERE SOLD VIA COMPETITIVE BID THROUGH JP MORGAN SECURITIES INC MARVEL HOLDINGS INC 150 MILLION OF SENIOR SECURED DISCOUNT NOTES DUE APRIL 15 1998 PRICED AT 58662 TO YIELD 1225 THE NONCALLABLE NOTES WERE RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P THE OFFERING WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO NL INDUSTRIES INC 350 MILLION OF DEBT IN TWO PARTS PRICED BY UNDERWRITERS LED BY SALOMON BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 250 MILLION OF SENIOR SECURED NOTES DUE OCT 15 2003 WAS PRICED AT PAR TO YIELD 1175 THE NOTES NONCALLABLE FOR FIVE YEARS WERE RATED SINGLEB1 BY MOODY'S AND SINGLEB BY S&P THE SECOND TRANCHE 100 MILLION PROCEEDS OF SENIOR SECURED DISCOUNT NOTES DUE OCT 15 2005 WAS PRICED AT 53336 TO YIELD 13 THE NOTES NONCALLABLE FOR FIVE YEARS WERE RATED SINGLEB BY MOODY'S AND SINGLEB BY S&P TORONTODOMINION BANK 100 MILLION OF SUBORDINATED NOTES DUE NOV 1 2008 PRICED AS 6125S AT 99832 TO YIELD 6142 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 88 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO WALT DISNEY CO 100 MILLION OF MEDIUMTERM NOTES PRICED AT PAR TO YIELD 58 THE NOTES DUE OCT 27 2008 ARE NONCALLABLE RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO ZURICH REINSURANCE CENTRE HOLDINGS INC 200 MILLION OF SENIOR NOTES DUE OCT 15 2023 PRICED AS 7125S AT 99178 TO YIELD 7192 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 110 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON EQUITABLE OF IOWA COS 33 MILLION COMMON SHARES PRICED AT 35 EACH THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FRIEDMAN'S INC INITIAL OFFERING OF 33 MILLION COMMON SHARES PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO HEALTH CARE REIT INC 25 MILLION COMMON SHARES PRICED AT 25125 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS CO KOALA CORP INITIAL OFFERING OF 700000 COMMON SHARES PRICED AT 6 EACH THROUGH UNDERWRITERS LED BY COHIG & ASSOCIATES INC LODGENET ENTERTAINMENT CORP INITIAL OFFERING OF 45 MILLION COMMON SHARES WAS PRICED AT 1350 EACH THROUGH UNDERWRITERS LED BY OPPENHEIMER & CO MCARTHUR/GLEN REALTY CORP INITIAL OFFERING OF 101 MILLION COMMON SHARES PRICED AT 2150 EACH THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC PENNSYLVANIA ENTERPRISES INC 11 MILLION COMMON SHARES PRICED AT 2725 A EACH THROUGH LEAD UNDERWRITERS WHEAT FIRST BUTCHER & SINGER CAPITAL MARKETS AND LEGG MASON WOOD WALKER INC ACCORDING TO THE COMPANY UNCLE B'S BAKERY INC INITIAL PUBLIC OFFERING OF 16 MILLION COMMON SHARES OF UNCLE B'S BAKERY INC PRICED AT 3125 EACH THROUGH UNDERWRITERS LED BY JOHN G KINNARD & CO BALTIMORE COUNTY 161 MILLION OF SERIES 1993 UNLIMITEDTAX REFUNDING BONDS APPARENTLY WON BY GROUPS LED BY GOLDMAN SACHS & CO AND BEARS STEARNS & CO GOLDMAN SACHS IS BELIEVED TO HAVE WON 100 MILLION OF THE BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 45826 YIELDS RANGE FROM 305 IN 1995 TO 5 IN 2012 AND 2013 BEAR STEARNS APPARENTLY WON 61 MILLION OF THE BONDS WITH TRUE INTEREST COST 46598 YIELDS FOR THESE BONDS RANGE FROM 26 IN 1994 TO 495 IN 2011 MOODY'S RATED THE SECURITIES TRIPLEA AND S&P IS EXPECTED TO ASSIGN A DOUBLEAPLUS RATING OHIO BUILDING AUTHORITY 2143 MILLION OF WORKERS COMPENSATION FACILITIES BONDS PRICED BY A SMITH BARNEY SHEARSON INC GROUP WITH YIELDS FROM 325 IN 1995 TO 524 IN 2014 MOODY'S RATED THE BONDS SINGLEA AND S&P ASSIGNED A SINGLEAPLUS RATING PENNSYLVANIA 400 MILLION FIRST SERIES OF 199394 TAXANTICIPATION NOTES APPARENTLY WON BY MANAGING UNDERWRITERS MORGAN STANLEY & CO FIRST BOSTON CORP FIRST CHICAGO CAPITAL MARKETS INC AND PRUDENTIAL SECURITIES INC THE NOTES DUE JUNE 30 ARE PRICED AS 325S TO YIELD 265 THEY HAVE BEEN RATED MIG1 BY MOODY'S AND SP1PLUS BY S&P MORGAN STANLEY APPARENTLY WON 200 MILLION OF THE MOTES WITH A BID SETTING THE NET INTEREST COST AT 272 FIRST BOSTON APPARENTLY WON 100 MILLION WITH NET INTEREST COST 27 FIRST CHICAGO APPARENTLY WON 50 MILLION WITH NET INTEREST COST 271 AND PRUDENTIAL SECURITIES APPARENTLY WON 50 MILLION WITH NET INTEREST COST 272 UNIVERSITY OF CALIFORNIA 171 MILLION OF SERIES B REFUNDING REVENUE BONDS FOR MULTIPURPOSE PROJECTS APPARENTLY WON BY A FIRST BOSTON CORP GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5135 YIELDS RANGE FROM 26 IN 1994 TO 523 IN 2016 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P VALDEZ ALASKA 150 MILLION OF SERIES 1993B MARINE TERMINAL REVENUE BONDS PRICED BY A GOLDMAN SACHS & CO GROUP THE BONDS ARE PRICED AS 55S AT PAR TO YIELD 55 ON OCT 1 2028 MOODY'S RATED THE ISSUE SINGLEA1 AND S&P ASSIGNED A DOUBLEAMINUS RATING FEDERAL HOME LOAN MORTGAGE CORP 810 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES G024 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 405 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY NOMURA SECURITIES INTERNATIONAL INC THE OFFERING SERIES 1626 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 6625 AND WEIGHTED AVERAGE TERM TO MATURITY OF 178 MONTHS MITSUBISHI MOTORS CREDIT OF AMERICA INC 3452 MILLION OF ASSETBACKED CERTIFICATES PRICED THROUGH UNDERWRITERS LED BY CS FIRST BOSTON THE CERTIFICATES WERE PRICED AS 4S AT 9984375 TO YIELD 4142 A 325 BASISPOINT SPREAD ABOVE THE TREASURY'S TWOYEAR NOTE THE CERTIFICATES HAVE A 154YEAR AVERAGE LIFE AND WERE RATED TRIPLEA BY MOODY'S AND S&P MITSUBUSIHI MOTOR CREDIT IS A SUBSIDIARY OF MITSUBISHI MOTORS CORP OF TOKYO ABB INTERNATIONAL FINANCE NV SWISS PARENT 10 BILLION YEN OF STEPUP FIXEDRATE EUROBONDS DUE JUNE 24 1999 AT ISSUE AND REOFFER PRICE 10025 VIA UBS LTD AND SAKURA FINANCE INTERNATIONAL LTD INITIAL COUPON 269 UNTIL FEB 8 1994 THEREAFTER COUPON STEPS UP TO 365 PAYABLE SEMIANNUALLY KEEPWELL AGREEMENT WITH ASEA BROWN BOVERI LTD FEES 025 EUROPEAN ECONOMIC COMMUNITY SUPRANATIONAL ONE BILLION ECU OF 6 EUROBONDS DUE NOV 3 2000 AT ISSUE PRICE 100545 VIA BNP CREDIT SUISSE FIRST BOSTON LTD DRESDNER BANK AG AND GOLDMAN SACHS INTERNATIONAL LTD REOFFERED AT 9897 TO YIELD 6186 A MARGIN OF 12 BASIS POINTS BELOW COMPARABLE FRENCH TREASURY FEES 1875 IBIDEN CO JAPAN 150 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE OCT 29 1997 WITH EQUITYPURCHASE WARRANTS CARRYING 05 COUPON AT PAR VIA NOMURA BANK SWITZERLAND WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES FROM NOV 12 1993 TO OCT 15 1997 TERMS FIXED OCT 18 FEES 1625 ORESUNDSFOERBINDELSEN DENMARK 100 MILLION SWISS FRANCS OF 4375 PUBLIC BONDS DUE DEC 1 2003 PRICED AT 1025 VIA CREDIT SUISSE FEES 275 RABOBANK NEDERLAND NETHERLANDS 500 MILLION DUTCH GUILDERS OF 6375 EUROBONDS DUE JAN 5 2009 AT ISSUE PRICE 101 FOR OWN ACCOUNT REOFFERED AT 9995 TO YIELD 638 A SPREAD OF 19 BASIS POINTS ABOVE DUTCH STATE LOAN OF SEPTEMBER 2007 FEES UNDISCLOSED 9310140043 931014 THE INTERACTIVE AGE THE ACQUISITION OF TCI COMPUTER INDUSTRY SEES A FEAST OF NEW MARKETS BY DON CLARK AND STEPHEN KREIDER YODER STAFF REPORTERS OF THE WALL STREET JOURNAL MUCH OF THE COMPUTER INDUSTRY ENTHUSIASTICALLY BLESSED THE PLANS OF BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC FIGURING THAT THE MEGADEAL WILL LAY OUT A FEAST OF NEW TECHNOLOGY MARKETS MUCH SOONER THAN COMPANIES HAD EXPECTED THE MIDATLANTIC REGIONAL BELL COMPANY'S PURCHASE OF THE CABLE OPERATOR COMPUTER EXECUTIVES SAID WILL ACCELERATE THE HEADLONG RUSH TO REWIRE AMERICA FOR INTERACTIVE VIDEO COMMUNICATIONS THAT WILL MEAN MORE DEMAND FOR COMPUTING POWER ADVANCED SEMICONDUCTORS NEW OPERATING SYSTEMS TVSETTOP BOXES AND ENTERTAINMENT PROGRAMMING TO RUN ON THE NEWWAVE NETWORKS THE FASTER AND MORE GRANDIOSE THE CONSOLIDATION IS THE FASTER THE TRANSITION WILL HAPPEN TO THE DIGITAL HIGHWAY SAID WEI YEN A SENIOR VICE PRESIDENT AT SILICON GRAPHICS INC THE FASTER IT HAPPENS THE BETTER FOR US MARC PORAT CHIEF EXECUTIVE OFFICER OF GENERAL MAGIC INC A CONSORTIUM DEVELOPING SOFTWARE FOR INTERACTIVE TELEVISION SAID THE ACQUISITION IS BASICALLY SAYING THIS IS FOR KEEPS WHICH WILL GALVANIZE HUNDREDS OF HARDWARE MAKERS AND THOUSANDS OF CONTENT PROVIDERS SUCH AS MOVIE STUDIOS VIDEO GAME COMPANIES AND SOFTWARE AND DATABASE DEVELOPERS TO INVEST IN INTERACTIVE TV PROJECTS DESPITE THE STRONG BLESSINGS OF MOST IN THE COMPUTER INDUSTRY THE BELLTCI DEAL WILL FACE OBJECTIONS THE IDEA THAT THERE ARE SEPARATE TELEPHONE AND CABLE INDUSTRIES THAT IDEA IS DEAD SAID MITCHELL KAPOR WHO FOUNDED LOTUS DEVELOPMENT CORP AND NOW IS CHAIRMAN OF THE ELECTRONIC FREEDOM FOUNDATION WHICH STUDIES PUBLICPOLICY ISSUES IN THE COMPUTER INDUSTRY THERE IS GOING TO BE A HUGE CONCENTRATION OF POWER AND THERE IS A REAL RISK OF LOSS OF DIVERSITY OF SOURCES OF INFORMATION THE PROSPECT OF A WAVE OF COMBINED TELEPHONE AND CABLE COMPANIES ALSO RAISES SOME PROFOUND QUESTIONS WILL THERE BE ONLY ONE INFORMATION HIGHWAY TO EACH HOME INSTEAD OF TWO COMPETING ONES PHONE AND CABLE WILL A FEW COMMUNICATIONS OLIGOPOLIES STANDARDIZE ON A FEW KEY HARDWARE AND SOFTWARE SUPPLIERS AND FREEZE OTHERS OUT WILL CONSOLIDATION LIMIT THE NUMBER OF PEOPLE ABLE TO DISTRIBUTE MULTIMEDIA INFORMATION BUT THE INDUSTRY LARGELY BRUSHES OFF SUCH QUESTIONS THIS KIND OF MOVE IS GOING TO BE NECESSARY TO GET THE INFORMATION HIGHWAY BUILT SAID NATHAN MYHRVOLD SENIOR VICE PRESIDENT OF ADVANCED TECHNOLOGY AT MICROSOFT CORP WHICH IS TRYING TO MOVE INTO OPERATING SOFTWARE FOR INTERACTIVE TELEVISION THE PREVIOUS STRUCTURES WEREN'T GOING TO MAKE IT SILICON GRAPHICS HEWLETTPACKARD CO INTERNATIONAL BUSINESS MACHINES CORP AND MANY OTHER COMPUTER COMPANIES EXPECT INTERACTIVE TELEVISION SERVICES TO CREATE BIG NEW MARKETS FOR THEIR COMPUTERS TEST EQUIPMENT AND OTHER PRODUCTS THEY ALSO SEE OPPORTUNITY TO PUSH INTO HIGHVOLUME CONSUMER MARKETS WITH TECHNOLOGIES THEY HAVE HONED IN THE COMPUTER MARKET SILICON GRAPHICS HAS AGREED TO PROVIDE TIME WARNER INC A CABLE MEDIA AND ENTERTAINMENT CONCERN WITH TECHNOLOGIES FOR CABLETV BOXES FOR EXAMPLE WHILE HP WILL DEVELOP TECHNOLOGIES TO LET INTERACTIVETV SUBSCRIBERS USE COLOR PRINTERS IBM IS DEVELOPING PRODUCTS FOR EVERYTHING FROM THE WIRING FOR THE BACK OF TV SETS AND CHIPS FOR SETTOP BOXES TO MAINFRAME COMPUTERS THAT WORK AS SERVERS STORING DATA AND PLAYING TRAFFIC COP IN HUGE INTERACTIVE NETWORKS IBM AND AMERITECH CORP A MIDWEST REGIONAL BELL COMPANY ARE TESTING OUT MAINFRAMES AS SERVERS IN THE CHICAGO AREA IBM IS ALSO IN TRIALS WITH BELL ATLANTIC USING SMALLER COMPUTERS TO SERVE UP FULLMOTION VIDEOS INTEL CORP THE BIG SEMICONDUCTOR MAKER IS WORKING WITH MICROSOFT AND GENERAL INSTRUMENT CORP TO MAKE SOPHISTICATED SETTOP BOXES FOR INTERACTIVE TV AS IS 3DO CO A STARTUP COMPANY THAT JUST BEGAN SELLING A NEW INTERACTIVE ENTERTAINMENT SYSTEM THAT PLAYS SOFTWARE ON COMPACT DISKS THESE COMPANIES' PLANS REQUIRE NETWORKS THAT CAN CARRY MORE DATA ALONG WITH SOPHISTICATED SWITCHING SYSTEMS TO MOVE INTERACTIVE VIDEO INFORMATION AROUND TODAY'S CABLE SYSTEMS FOR THE MOST PART ARE ONEWAY NETWORKS WITHOUT THAT SWITCHING CAPABILITY PHONE COMPANIES ARE GOOD AT SWITCHING BUT NEED CABLE COMPANIES' HIGHER DATA CAPACITY THEY ARE COMPLEMENTARY SAID AVRAM MILLER INTEL'S VICE PRESIDENT OF BUSINESS DEVELOPMENT THIS HAS GOT TO BE GOOD FOR EVERYONE THE BELLTCI DEAL AND OTHERS IN THE FUTURE MAY MEAN FEWER POTENTIAL CUSTOMERS FOR COMPUTER AND SOFTWARE MAKERS SAID JAMES OLSON GENERAL MANAGER OF HP'S VIDEOCOMMUNICATIONS DIVISION BUT BY THEIR TEAMING UP THE PROBABILITY OF THE INDUSTRY SUCCEEDING SOONER IS LARGER HE SAID ADDING THAT HP IS ALREADY IN DISCUSSIONS WITH TCI AND BELL ATLANTIC ABOUT PROVIDING TECHNOLOGIES FOR INTERACTIVETV SERVICES ROBERT CARBERRY PRESIDENT OF FIREWORKS PARTNERS A MULTIMEDIA DEVELOPMENT GROUP AT IBM SAID HE ENVISIONS A PERVASIVE OPPORTUNITY FOR COMPANIES LIKE IBM IN THE MARKETPLACE NO MATTER HOW MANY PLAYERS ARE LEFT WHEN THE DUST SETTLES IN ORDER TO WORK STANDARDS AND OPEN TECHNOLOGY WILL HAVE TO PREVAIL IN SUCH NETWORKS CREATING OPPORTUNITIES FOR EVERY COMPETITOR MR CARBERRY ARGUED THESE SYSTEMS WILL BE VERY OPEN AND EVERYBODY WILL UNDERSTAND THE WIDTH OF THE ROAD AND THE MARKINGS HE SAID THE OPPORTUNITY TO MOVE ACROSS THESE HIGHWAYS WILL DETERMINE SUCCESS THE CABLETELEPHONE COLLABORATION RAISES CONCERNS THAT A FEW GIANTS COULD PREMATURELY SET STANDARDS IN AREAS SUCH AS SEMICONDUCTORS OR OPERATING SYSTEMS MUCH AS MICROSOFT AND INTEL NOW DOMINATE THE PERSONAL COMPUTER INDUSTRY SAID DENISE CARUSO EDITOR OF DIGITAL MEDIA A NEWSLETTER IN SAN FRANCISCO IF THAT WERE TO HAPPEN IT COULD HAVE A CHILLING EFFECT MS CARUSO SAID BUT I THINK ALL OF THE COMMUNICATIONS COMPANIES ARE VERY AWARE OF THIS PROBLEM AND REALIZE IT WOULD BE FOOLISH TO SIGN EXCLUSIVE DEALS NOW FEW COMPUTER EXECUTIVES ARE WORRIED ABOUT THE CONCENTRATION OF POWER COMPANIES LIKE TIME WARNER AND TCI HAVE ALREADY SHOWN A BENT FOR CREATING ALLIANCES WITH A BROAD RANGE OF COMPANIES OFTEN CREATING SEPARATE ALLIANCES WITH COMPANIES THAT COMPETE WITH EACH OTHER SAID EDWARD CALLAHAN VICE PRESIDENT OF GLOBAL TELECOMMUNICATIONS AND CABLE AT SUN MICROSYSTEMS INC THERE ARE MULTIPLE COMPUTER VENDORS PARTNERING WITH ALL THE TELECOM COMPANIES AND ALL THE CABLE COMPANIES HE SAID THERE'S TOO MUCH PRESSURE TO GET TO MARKET AND DIFFERENTIATE THEMSELVES HIGHPROFILE DEALS SUCH AS BELL ATLANTIC AND TCI'S ALSO MAKES US TECHNOLOGY MORE ATTRACTIVE ABROAD WHERE INDUSTRIES HAVE BEEN MUCH SLOWER TO CONVERGE SAID MR CALLAHAN ADDING THAT SUN HAS RECENTLY BEEN COURTED BY PHONE COMPANIES IN FRANCE AND JAPAN BEING A PLAYER IN THE FOREFRONT OF THE MOVEMENT ONLY ENHANCES YOUR OPPORTUNITIES WITH THE FOLLOWING PLAYERS HE SAID THE CONVERGENCE HAPPENING AT A HUGE RATE IN THIS COUNTRY ENHANCES OUR GLOBAL OPPORTUNITY LAURIE HAYS CONTRIBUTED TO THIS ARTICLE 9310140042 931014 THE INTERACTIVE AGE THE ACQUISITION OF TCI FIRST WHITE HOUSE SIGNAL HAS LOOK OF A GREEN LIGHT BY DANIEL PEARL AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION SAYS IT WANTS TO HELP BUILD AN INFORMATION SUPERHIGHWAY NOW IT MUST DECIDE WHETHER THE PROPOSED ACQUISITION OF TELECOMMUNICATIONS INC BY BELL ATLANTIC CORP IS THE WAY TO GET THERE AT FIRST BLUSH OFFICIALS AT BOTH THE WHITE HOUSE AND THE JUSTICE DEPARTMENT APPEAR TO BE LEANING TOWARD ANSWERING THAT QUESTION WITH A YES SEVERAL ADMINISTRATION OFFICIALS SAID THE PROPOSED DEAL HOLDS OUT THE PROMISE OF GETTING FANCY NEW TELEVISION SERVICES TO MANY HOMES QUICKLY AND BECAUSE BELL ATLANTIC HAS PLEDGED TO SELL OFF TCI SYSTEMS IN ITS OWN MARKETS THE DEAL SEEMS TO EASE ANTITRUST CONCERNS BY ALLOWING FOR COMPETING SUPERHIGHWAYS TOO STILL BELL ATLANTIC AND TCI ARE LIKELY TO ENCOUNTER UNCERTAINTY AND DIVISION AMONG FEDERAL OFFICIALS IN ADDITION TO FACING A NUMBING MAZE OF STATE AND LOCAL REGULATORS AS THE TWO COMPANIES TRY TO GET APPROVAL FOR THE HUGE DEAL FOR ONE THING THE CLINTON ADMINISTRATION STILL HASN'T SPELLED OUT ITS VISION OF HOW TO BUILD INFORMATION SUPERHIGHWAYS WHICH WOULD FEED ENHANCED TELEPHONE VIDEO AND INFORMATION SERVICES INTO HOMES SOME OFFICIALS ARGUE THAT ENCOURAGING SMALL ENTREPRENEURIAL COMPANIES TO TAKE THE LEAD WOULD BE BETTER THAN ALLOWING MEGADEALS THAT COULD SCARE OFF COMPETITION THERE'S A CLEAR TENSION SAID ONE ADMINISTRATION OFFICIAL IN ADDITION THE ADMINISTRATION HASN'T ARTICULATED AN ANTITRUST POLICY FOR THE TELECOMMUNICATIONS INDUSTRY BY CONTRAST IT HAS SET FORTH POLICIES FOR HEALTH CARE AND IT HASN'T EVEN BEEN DECIDED WHICH AGENCY WILL REVIEW THE PROPOSED ACQUISITION THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION OR THE FEDERAL TRADE COMMISSION AN INDEPENDENT AGENCY THAT DOESN'T INCLUDE ANY MEMBERS APPOINTED BY PRESIDENT CLINTON THE ADMINISTRATION WAS CAUGHT FLATFOOTED IN PART BECAUSE IT STILL HAS SEVEN VACANCIES IN TOP POSITIONS AT THE FEDERAL COMMUNICATIONS COMMISSION INCLUDING REED HUNDT THE PRESIDENT'S NOMINEE FOR CHAIRMAN WHO HASN'T YET BEEN CONFIRMED BY THE SENATE THIS IS WHERE YOU REALLY NEED AN FCC READY TO ROLL SAID LLOYD CONSTANTINE FORMERLY NEW YORK STATE'S CHIEF ANTITRUST PROSECUTOR AND NOW A LAWYER IN PRIVATE PRACTICE RIGHT NOW THEY DON'T HAVE THE PEOPLE IN PLACE TO DO THAT BELL ATLANTIC PRESIDENT JAMES CULLEN YESTERDAY AGREED THAT THERE CURRENTLY IS A POLICY VACUUM IN WASHINGTON BUT HE SAID IT MAY WORK TO OUR ADVANTAGE HE AND OTHER COMPANY OFFICIALS LOST NO TIME LOBBYING WHITE HOUSE AIDES YESTERDAY AFTERWARD ONE TOP ADMINISTRATION AIDE SAID ON THE SURFACE WE SEE NOTHING THAT IS INCONSISTENT WITH OUR POLICY BUT WE NEED TO TAKE A CLOSE LOOK AT IT FOR ANTITRUST ISSUES VICE PRESIDENT GORE WHOSE STAFF ALSO GOT A MORNING BRIEFING SAID LATE YESTERDAY THE ADMINISTRATION SUPPORTS ANY DEVELOPMENT IN THE COMMUNICATIONS MARKETPLACE THAT IS PROCOMPETITIVE AND FOSTERS THE DEVELOPMENT OF AN OPEN INTERACTIVE INFORMATION INFRASTRUCTURE SUBSEQUENT FORMAL REVIEWS WILL DETERMINE WHETHER THIS PROPOSAL MEETS THOSE GOALS BELL ATLANTIC AND TCI OFFICIALS ASSERTED THAT IT WILL BY JOINING FORCES THEY SAID THE TWO COMPANIES WOULD GAIN FINANCIAL CLOUT AND NATIONAL SCOPE NEEDED TO BUILD MULTIBILLIONDOLLAR FIBEROPTIC NETWORKS THIS IS ABOUT THE ONLY WAY THIS IS GOING TO TAKE PLACE IN THIS COUNTRY SAID BELL ATLANTIC CHAIRMAN RAYMOND SMITH HE ADDED THIS IS ONE AREA OF AMERICAN LEADERSHIP WE'RE NOT GOING TO LOSE AND JOHN MALONE CHIEF EXECUTIVE OFFICER OF TCI CALLED THE DEAL PROCOMPETITIVE BUT SKEPTICS ABOUND IN CONGRESS CALLING TCI A TELECOMMUNICATION MONOPOLIST HOUSE JUDICIARY CHAIRMAN JACK BROOKS SAID THE QUESTION FOR CONSUMERS AND FOR COMPETITORS IS WHETHER SUCH A COMBINATION WILL OPEN UP NEW MARKETS OR TECHNOLOGIES OR SIMPLY FORECLOSE MARKETS TO CURRENT OR POTENTIAL ENTRANTS REP EDWARD J MARKEY D MASS WHO SAID HE WILL HOLD HEARINGS ON THE ISSUE OF MEDIA CONCENTRATION ASKED THE FCC TO ASSESS THE POTENTIAL TECHNOLOGICAL AND MARKET BOTTLENECKS CREATED BY MERGERS ACQUISITIONS AND ALLIANCES AMONG CABLE TELEPHONE AND COMPUTER COMPANIES AND SEN HOWARD METZENBAUM D OHIO CHAIRMAN OF THE SENATE'S ANTITRUST SUBCOMMITTEE SAID THE PROPOSED DEAL COULD RESULT IN BOTH CABLE AND TELEPHONE CUSTOMERS BEING OVERCHARGED BUT JAMES QUELLO INTERIM FCC CHAIRMAN SAID TO ME AS LONG AS THE SYSTEM REMAINS COMPETITIVE IT DOESN'T RAISE THAT BIG A FLAG THE JUSTICE DEPARTMENT MAY WELL REACH THE SAME CONCLUSION LAWYERS SAY A CENTRAL QUESTION FOR ANTITRUST REGULATORS IS WHETHER THE ACQUISITION WOULD ALLOW THE PHONE COMPANY TO GAIN MONOPOLY POWER IN CABLE SERVICES IN ITS REGION BELL ATLANTIC SEEMED TO ELIMINATE THAT OBJECTION BY AGREEING TO SELL OFF ANY CABLE SYSTEMS IT ACQUIRES IN ITS OWN SERVICE AREA THAT WOULD SHED 15 OF THE NEW COMANIES' 107 MILLION SUBSCRIBERS ANOTHER QUESTION FOR REGULATORS IS WHETHER THE NEW COMPANY WOULD HAVE TOO MUCH CONTROL OVER PROGRAMMING THAT ISSUE WILL BE EXPLORED WHEN THE ADMINISTRATION REVIEWS TCI'S PROPOSAL TO REACQUIRE LIBERTY MEDIA CORP A CABLE PROGRAMMER AND OPERATOR THAT TCI SPUN OFF SEVERAL YEARS AGO IN REACTION TO GOVERNMENT ANTITRUST CONCERNS UNDER CURRENT REGULATIONS TELEPHONE COMPANIES THAT PROVIDE VIDEO PROGRAMMING HAVE TO CARRY COMPETING PROGRAMMING SERVICES TOO BUT THAT RULE DOESN'T APPLY TO CABLE SYSTEMS SO IT APPARENTLY WOULDN'T COVER THE CABLE SYSTEMS BEING PURCHASED BY BELL ATLANTIC THE MONOPOLY POWER OF THIS NEW COMPANY AND ITS ABILITY TO DISCRIMINATE AGAINST BROADCASTERS AND OTHER NONAFFILIATED PROGRAMMERS IS BEYOND ALL MEASURE SAID EDWARD O FRITTS PRESIDENT OF THE NATIONAL ASSOCIATION OF BROADCASTERS MR MALONE HOWEVER SAID THE NEW BELL ATLANTIC WOULD PROVIDE AN OPEN PLATFORM FOR PROGRAMMERS AND HE PLEDGED TO SUPPORT SMALL UPSTART SERVICES FOR INSTANCE HE SAID THE COMBINED COMPANY WOULD DESIGN ITS TELEVISION SETTOP BOXES SO THAT ANY INTERACTIVE VIDEOGAME COMPANY COULD PROVIDE SERVICES ON THE BELL ATLANTIC SYSTEM ANNE BINGAMAN WHO HEADS THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION IS KNOWN AS A LITIGATOR WHO FAVORS STRONG ANTITRUST ENFORCEMENT AS A MEANS OF KEEPING AMERICA'S COMPETITIVE EDGE STRONG SHE HAS BEEN WILLING TO WORK WITH ADMINISTRATION OFFICIALS TO FURTHER ECONOMICPOLICY GOALS THOUGH MEANWHILE BELL ATLANTIC AND TCI FACE SOME ZEALOUS STATE REGULATORS THE ATTORNEY GENERAL'S OFFICE IN NEW YORK SAID IT WOULD REVIEW THE DEALBECAUSE IT RAISES SERIOUS COMPETITIVENESS ISSUES AND MARYLAND ATTORNEY GENERAL JOSEPH CURRAN SAID HIS OFFICE WILL INVESTIGATE THE PROPOSED ACQUISITION BECAUSE OF FEARS THAT BELL ATLANTIC AND TCI COULD SCARE OFF POTENTIAL CABLE COMPETITORS IN HIS STATE STATE TELEPHONE REGULATORS ARE LIKELY TO WEIGH IN TOO THEY'LL INSIST THAT THE NEW BELL ATLANTIC FIND A WAY TO CHARGE THE SAME PRICE TO BOTHRAL AND CITY CUSTOMERS FOR THE NEW INTERACTIVE SERVICES SAYS DENNIS NAGEL PRESIDENT OF THE NATIONAL ASSOCIATION OF REGULATORY UTILITY COMMISSIONERS AND SCOTT RAFFERTY A CONSULTANT TO STATE GOVERNMENTS IN TELEPHONE RATE CASES SAYS STATES WILL QUESTION WHETHER THE DEAL IS REALLY JUST A COSTLY EXPANSION OUTSIDE BELL ATLANTIC'S SERVICE AREA GUARANTEED BY BELL ATLANTIC RATEPAYERS IT'S BAD FOR COMPETITION AND IT'S BAD FOR TELEPHONE CONSUMERS HE SAID BELL ATLANTIC INSISTS THAT IT WILL KEEP ITS RATES LOW AND THAT TELEPHONE CONSUMERS WILL BENEFIT FROM THE ADDED SERVICES TCI AND BELL ATLANTIC ALSO WILL HAVE TO APPEASE SCORES OF CITIES AND TOWNS WHICH MUST APPROVE THE TRANSFER OF CABLE FRANCHISES TO THE NEW COMPANY THEY'LL BE SCRUTINIZING PLANS FOR THE NEW INTERACTIVE SERVICES EVEN THOUGH THE SERVICES WILL EXTEND FAR BEYOND CABLE TELEVISION WE'VE GOT SOMEWHAT OUTDATED LAWS DEALING WITH NEW MARKETPLACE REALITIES SAID ALAN SIKES FORMER CHAIRMAN OF THE FCC AND NOW A PRESIDENT OF HEARST CORP'S NEW MEDIA GROUP JOE DAVIDSON PAUL M BARRETT AND GAUTAM NAIK CONTRIBUTED TO THIS ARTICLE 9310140041 931014 BUSINESS BRIEF OCCIDENTAL PETROLEUM CORP FIRM SAYS IT DISCOVERS OIL IN NORTHWEST OMAN ARABIA OCCIDENTAL PETROLEUM CORP SAID IT DISCOVERED OIL IN NORTHWESTERN OMAN ARABIA ABOUT 20 MILES WEST OF ITS AL BARAKAH PRODUCING FIELD OCCIDENTAL SAID THE WADI LATHAM1 WELL FLOWED AT A DAILY RATE OF 2439 BARRELS AND 22 MILLION CUBIC FEET OF GAS THROUGH AN 80/64INCH OPENING THE WELL WAS DRILLED IN THE 16 MILLION ACRE SUNEINAH BLOCK WE BELIEVE THAT WE HAVE FOUND THE KEY FOR FINDING NEW RESERVES IN THIS PART OF OMAN AND MANY PROSPECTS EXIST WHICH WILL KEEP US BUSY EXPLORING FOR THE NEXT TWO YEARS SAID OCCIDENTAL'S RAY R IRANI CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE OCCIDENTAL COMMON CLOSED AT 2025 OFF 25 CENTS OCCIDENTAL OPERATES THE WELL AND HAS A 65 INTEREST NESTY OY THE FINNISH STATE OIL COMPANY HOLDS THE REMAINING 35 OCCIDENTAL BASED IN LOS ANGELES HAS OPERATIONS IN OIL AND CHEMICALS 9310140040 931014 THE INTERACTIVE AGE BELLTCI DEAL PUTS HOLLYWOOD IN THE SPOTLIGHT BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD IS APPLAUDING THE LATEST ROUND OF MERGERMANIA YESTERDAY'S ANNOUNCEMENT OF THE PROPOSED COMBINATION OF BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC TOOK THE TOWN BY STORM RAISING VISIONS OF A STAMPEDE TO ACQUIRE ENTERTAINMENT COMPANIES THAT CAN FILL THE DEMAND OF PROMISED 500CHANNEL CABLE TV SYSTEMS A TOP STUDIO EXECUTIVE RECOUNTS HOW HE HAS BEEN HAVING MEETINGS WITH TELEPHONE COMPANY EXECUTIVES FOR MORE THAN A YEAR NOW BUT LAST MONTH THE CONVERSATIONS STARTED TO CHANGE ALL OF A SUDDEN THEY WEREN'T TALKING ABOUT THE LATEST WONDERFUL HIGHTECH PROJECT HE SAYS THEY WERE OFFERING SERIOUS MONEY FIRST FRONTRUNNER TED TURNER ANNOUNCED PLANS FOR TURNER BROADCASTING SYSTEM INC TO BUY NEW LINE CINEMA AND CASTLE ROCK ENTERTAINMENT THEN PARAMOUNT COMMUNICATIONS INC AND VIACOM INC ANNOUNCED THEIR MERGER WITH QVC NETWORK INC TRYING TO MOVE IN ON PARAMOUNT INSTEAD ENTERTAINMENTINDUSTRY EXECUTIVES EXPECT THE GATHERING MOMENTUM TO HEIGHTEN THE INTEREST OF TELEPHONE COMPANIES AND OTHER DEEPPOCKETED CONCERNS SUCH AS THE TV NETWORKS IN FILM AND TV PRODUCERS ALREADY REPORTS ARE CIRCULATING OF DISCUSSIONS BETWEEN BELL ATLANTICTCI AND THE REMAINING MOVIE STUDIOS EVEN THOSE WITH FAIRLY RECENT NEW MANAGEMENT SOME ANALYSTS BELIEVE THIS COULD BE AN OPPORTUNITY FOR THE JAPANESE ELECTRONIC GIANTS WHO HAVE BEEN SADDLED WITH THE NOTION THAT THEY OVERPAID FOR THEIR HOLLYWOOD CONNECTIONS TO LEAVE THE BUSINESS WITH A PROFIT BUT MOST OBSERVERS BELIEVE IT'S MORE LIKELY THAT SONY OR MATSUSHITA WILL ATTRACT NEW CAPITAL BY SELLING SAY HALFINTERESTS IN THEIR STUDIO OPERATIONS SONY HAS MADE THE RECORD AND FILMEDENTERTAINMENT INDUSTRIES A PART OF ITS CORPORATE CULTURE EVEN CHANGING THE NAMES OF CBS RECORDS AND COLUMBIA PICTURES ENTERTAINMENT TO SONY MUSIC AND SONY PICTURES AND SONY EXECUTIVES SAY THEY ARE KEENLY INTERESTED IN PURSUING OPPORTUNITIES THAT MIGHT ARISE NOW WE HAVE MADE A MAJOR COMMITMENT OF MORE THAN 8 BILLION TO THESE BUSINESSES AND WE'VE PUT OUR NAME ON THEM SAYS MICHAEL P SCHULHOF CHAIRMAN OF SONY CORP OF AMERICA AND A DIRECTOR OF PARENT SONY CORP WE HAVE AN APPETITE TO GO FORWARD AND WOULD LOVE TO FIND TELECOMMUNICATIONS PARTNERS TO HELP US BROADEN OUR ELECTRONIC DISTRIBUTION REACH TCI HAS ALREADY APPROACHED OTHER HOLLYWOOD STUDIOS IN THE PAST YEAR BEFORE BECOMING INVOLVED WITH QVC'S PARAMOUNT BID AND PEOPLE FAMILIAR WITH THE TALKS SAY THAT THE COMBINED BELL ATLANTICTCI COULD STILL APPROACH ANOTHER STUDIO IF QVC DOESN'T GET PARAMOUNT OR IF QVC DOESN'T TAKE ADDITIONAL FUNDING FROM TCI THESE PEOPLE SAY MR MALONE HAS ALREADY MADE OVERTURES TO MATSUSHITA'S MCA AND SONY ABOUT A POSSIBLE INVESTMENT THOUGH NONE OF THE PARTIES INVOLVED WILL CONFIRM THAT SIDNEY J SHEINBERG MCA'S PRESIDENT PRONOUNCED THE LATEST EVENTS HEALTHY BECAUSE CABLE AND TELEPHONE COMPANIES ARE COOPERATING WITH EACH OTHER WHAT IT PORTENDS IS MORE OPEN ARCHITECTURE MORE WAYS TO FURNISH SERVICES TO THE HOME HE SAYS THIS IS ULTIMATELY A GOOD THING EVERY COMPANY IN THE ENTERTAINMENT AND COMMUNICATIONS BUSINESS IS GOING TO BE UNDER PRESSURE TO FORM PARTNERSHIPS OBSERVERS REASON THIS IS LIKE THE OLD TRUSTS' THAT BUILT THE COUNTRY DURING THE INDUSTRIAL REVOLUTION SAYS STEPHEN K BANNON OF BANNON & CO A HOLLYWOODORIENTED INVESTMENT BANKING FIRM STILL THERE ARE MIXED VIEWS ON WHETHER THE OWNERSHIP LANDSCAPE WILL CHANGE DRAMATICALLY EXCEPT FOR PARAMOUNT NONE OF THE SIX MAJOR STUDIOS IS LIKELY TO BE SOLD OUTRIGHT MANY ENTERTAINMENT EXECUTIVES BELIEVE WALT DISNEY CO WHICH WOULD BE THE THE LARGEST GEM IN THE CROWN OF A COMMUNICATIONS GIANT HAS A NOTORIOUS AVERSION TO PARTNERSHIPS AND HAS ITS OWN STRONG CASH POSITION BECAUSE OF ITS THEMEPARK BUSINESS DISNEY CHAIRMAN MICHAEL EISNER HAS CONSISENTLY DISTANCED HIMSELF FROM THE MULTIMEDIA FRENZY IN THE PAST SAYING THAT SOFTWARE PRODUCTION NOT HARDWARE DELIVERY IS WHAT MATTERS IF NOT DISNEY THEN MANY OBSERVERS SEE SONY OR MATSUSHITA EMULATING TIME WARNER INC AND SELLING A LARGE STAKE IN SPUNOFF ENTERTAINMENT ASSETS TIME WARNER'S FILM AND TV OPERATIONS WERE PUT TOGETHER INTO TIME WARNER ENTERTAINMENT AND STAKES WERE SOLD TO ITOCHU CORP TOSHIBA CORP AND ANOTHER PHONE COMPANY U S WEST NETWORK EXECUTIVES MEANWHILE SAY THE BELL ATLANTICTCI TRANSACTION MAY PROVE TIMELY IN THEIR BATTLE TO GET FEDERAL REGULATIONS RESTRICTING THEIR OWNERSHIP OF HOLLYWOOD PRODUCTION STUDIOS LIFTED ON MONDAY THE US JUSTICE DEPARTMENT CAPITAL CITIES/ABC INC CBS INC AND GENERAL ELECTRIC CO'S NBC GO BEFORE FEDERAL JUDGE MANUEL REAL IN LOS ANGELES TO ASK THAT HE LIFT CONSENT DECREES THAT LIMIT THE NETWORKS' OWNERSHIP STAKES IN PRIMETIME TV PROGRAMS PRODUCED BY OUTSIDERS AND PREVENT THEM FROM SYNDICATING ORIGINAL PROGRAMS AND RERUNS THE FEDERAL COMMUNICATIONS COMMISSION ELIMINATED MANY OF THE TWODECADESOLD FINANCIAL INTEREST AND SYNDICATION REGULATIONS IN APRIL BUT THE NEW RULES CAN'T TAKE EFFECT UNTIL THE CONSENT DECREES ARE LIFTED OR IN THE CASE OF THE SYNDICATION RULES UNTIL TWO YEARS AFTER THE DECREES ARE LIFTED INDEPENDENT FILM AND TV PRODUCERS WHOSE RANKS WERE DECIMATED IN THE LATE 1980S BECAUSE OF OVERSPENDING AND POOR PRODUCTS ALSO ARE PLEASED BY CURRENT TRENDS THEY KNOW THAT THEIR LIBRARIES OF FILMS AND TV SHOWS WILL BE VALUABLE IN A MARKETPLACE THAT'S INCREASINGLY HUNGRY FOR PROGRAMMING EXECUTIVES AT STRUGGLING METROGOLDWYNMAYER INC FOR EXAMPLE ARE DELIGHTED WITH RECENT DEVELOPMENTS AFTER SEVERAL ROUGH YEARS THAT HOBBLED ITS PRODUCTION CAPABILITIES THE STUDIO MUST BE SOLD BY THE FRENCH BANK THAT OWNS IT CREDIT LYONNAIS SA BY 1997 AND A WHOLE NEW SET OF BUYERS IS EMERGING SAYS CHAIRMAN FRANK MANCUSO THE ASSET VALUE OF ENTERTAINMENT COMPANIES CONTINUES TO BE REDEFINED BECAUSE OF A SCARCITY FACTOR THERE'S MORE CAPACITY AND THE SAME SUPPLY AND THAT SUPPLY BECOMES MORE VALUABLE THAN EVER EVEN ORION PICTURES CORP WHICH EMERGED FROM BANKRUPTCYLAW PROTECTION LAST YEAR WITH HUGE DEBT AND A MORIBUND FILMMAKING OPERATION HAS REASON TO BE OPTIMISTIC THE VALUE OF ITS FILM LIBRARY WITH SUCH OSCARWINNING TROPHIES AS DANCES WITH WOLVES AND THE SILENCE OF THE LAMBS IS GROWING WE'RE IN THE BUSINESS OF CREATING THE SOFTWARE SAYS MEYER GOTTLIEB PRESIDENT AND CHIEF OPERATING OFFICER AT SAMUEL GOLDWYN CO THE DISTRIBUTOR OF SUCH FILMS AS MUCH ADO ABOUT NOTHING AND THE WEDDING BANQUET THE MORE VEHICLES THERE ARE TO EXPLOIT THAT SOFTWARE THE BETTER IT IS FOR US JOHN MALONE TCI CHAIRMAN SAID THAT A BELL ATLANTICTCI COMBINATION COULD HELP FILM COMPANIES MAKE LOWBUDGET MOVIES SPECIFICALLY TO RUN ON ITS VIDEO SYSTEM AND BYPASS MOVIE THEATERS AND OTHER TRADITIONAL DISTRIBUTION CHANNELS MR GOTTLIEB SAYS HIS COMPANY WOULD WELCOME THAT OPPORTUNITY ENVISIONING THAT IT MIGHT INVOLVE CUTTING MARKETING COSTS ONE SURE THING HOLLYWOOD CAN CONCLUDE FROM THE PROPOSED ACQUISITION IS THAT IT HASTENS THE COMING OF A 500CHANNEL ENVIRONMENT THE DEAL IS ABOUT CREATING A HUGE DELIVERY SYSTEM AND HOLLYWOOD'S GOT HALF OF WHAT WHAT THEY WANT TO DELIVERENTERTAINMENT THE OTHER HALF IS RETAILING SOME SAY THAT BELL ATLANTICTCI DOESN'T NEED TO ACQUIRE A MOVIE STUDIO IT HAS ENOUGH CLOUT TO CREATE ONE THIS CREATES ANOTHER HUGE PLAYER THAT IS A WOULDBE STUDIO SAYS PAUL KAGAN OF PAUL KAGAN ASSOCIATES IN CARMEL CALIF LAURA LANDRO ELIZABETH JENSEN AND THOMAS R KING CONTRIBUTED TO THIS ARTICLE 9310140039 931014 BUSINESS BRIEF SPECTRUM INFORMATION TECHNOLOGIES LICENSING ACCORD IS REACHED WITH ROCKWELL INTERNATIONAL SPECTRUM INFORMATION TECHNOLOGIES INC MANHASSET NY REACHED AN AGREEMENT FOR ROCKWELL INTERNATIONAL CORP TO LICENSE TELEPHONE DATA TRANSMISSION TECHNOLOGY NEWS OF THE AGREEMENT PUSHED SPECTRUM STOCK UP 109375 OR 172 TO 746875 ROCKWELL AN AEROSPACE CONCERN BASED IN NEWPORT BEACH CALIF WILL ADOPT SPECTRUM'S PATENTED TECHNOLOGY FOR ITS LINE OF PORTABLE MODEM CHIPSETS WHICH WILL BE USED IN PORTABLE COMPUTERS PERSONAL DIGITAL ASSISTANTS AND PERSONAL COMMUNICATORS TERMS WEREN'T DISCLOSED BUT SPECTRUM A CELLULAR DATA CONCERN SAID IT WILL RECEIVE AN UPFRONT FEE AND ROYALTIES ON CHIPSETS AND ON THE ACTIVATING DEVICES THE AGREEMENT FOLLOWS AN ANNOUNCEMENT LAST WEEK UNDER WHICH SPECTRUM WILL LICENSE CELLULAR DATA TECHNOLOGY FOR INTERNATIONAL BUSINESS MACHINES CORP'S THINKPAD PORTABLE COMPUTERS AND MODEMS 9310140038 931014 TECHNOLOGY & HEALTH CALPERS TELLS 18 HEALTHCARE PROVIDERS IT EXPECTS A 5 ROLLBACK IN PREMIUMS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL IN ITS MOST AGGRESSIVE SWIPE AT HEALTHCARE COSTS TO DATE THE HUGE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM SERVED NOTICE THAT IT EXPECTS HEALTHCARE PROVIDERS TO AGREE TO A 5 ROLLBACK IN HEALTHCARE PREMIUMS FOR 900000 PUBLIC EMPLOYEE FAMILIES WILLIAM D CRIST CALPERS BOARD PRESIDENT CITED CALIFORNIA'S STAGNANT ECONOMY WHICH IS EXERTING FISCAL PRESSURE ON PUBLIC AGENCIES TO REDUCE THE COST OF HEALTHCARE BENEFITS CALPERS WHICH MANAGES ONE OF THE COUNTRY'S LARGEST GROUPS OF INSURED INDIVIDUALS AND IS OFTEN CITED AS A MODEL OF HEALTHCARE REFORM TOLD 18 MANAGEDCARE COMPANIES THAT IT EXPECTS THE 5 ROLLBACK TO BE EFFECTIVE IN THE 199495 CONTRACT YEAR WHICH BEGINS AUG 1 CALLING THE MANDATE A MODEST GOAL CALPERS ALSO TOLD THE PROVIDERS THAT IT EXPECTS THE SAVINGS TO BE ACHIEVED BY ELIMINATING WASTE AND UNNECESSARY MEDICAL PROCEDURES WITHOUT COST SHIFTS OR BENEFIT REDUCTION THE PLAN WILL BE AN EARLY TEST OF CLAIMS BY THE CLINTON ADMINISTRATION THAT IT CAN WRING BILLIONS OF DOLLARS OF WASTE AND DUPLICATION OUT OF THE HEALTHCARE SYSTEM WITH ITS NATIONAL PLAN THE ROLLBACK FOLLOWS TWO CONSECUTIVE YEARS OF STRINGENT COST CONTAINMENT IN WHICH PROVIDERS LIMITED PREMIUM GROWTH TO 14 IN THE CURRENT YEAR'S CONTRACT AND 61 IN LAST YEAR'S CONTRACT OVER THE PAST TWO YEARS ITS PROVIDER PREMIUMS HAVE RISEN 75 OR ONEFOURTH THE NATIONAL AVERAGE OF 30 CALPERS ADDED PROVIDERS EXPRESSED SURPRISE AND MUTED ALARM AT THE DEPTH OF THE CUTBACK PROPOSED BUT SOME HINTED THAT THE 5 ROLLBACK DEMAND MAY REPRESENT CALPERS'S OPENING SALVO IN A CONTRACT NEGOTIATION THAT IS EXPECTED TO LAST UNTIL FEBRUARY IT'S PROBABLY THE MOST RADICAL REQUEST WE'VE SEEN EVERYBODY LOOKED A LITTLE PALE YESTERDAY SAID JERRY FLEMING VICE PRESIDENT OF KAISER PERMANENTE THE OAKLANDBASED HEALTHMAINTENANCE ORGANIZATION THAT CARES FOR 320000 OR ALMOST ONETHIRD OF CALPERS BENEFICIARIES IT'S A VERY VERY AGGRESSIVE TARGET WE HAVEN'T FIGURED OUT HOW WE MIGHT DEAL WITH IT KAISER'S MR FLEMING ADDED THE MESSAGE IS THIS ISN'T BUSINESSASUSUAL I DON'T WANT TO DISCOUNT THEIR WILL THEY'RE IN A VERY VERY POWERFUL POSITION ESPECIALLY AS HEALTHCARE REFORM LOOMS FOUNDATION HEALTH CORP WHICH MANAGES CARE FOR ABOUT 72000 CALPERS PROGRAM MEMBERS SAID IT WAS SURPRISED BY THE PUBLIC AND DRAMATIC NATURE OF THE CALPERS ANNOUNCEMENT WE KNEW IT WOULD BE A YEAR WHEN THEY WOULD BE PRETTY TOUGH IN THEIR NEGOTIATIONS SAID KURT DAVIS A SPOKESMAN FOR THE RANCHO CORDOVA CALIF COMPANY I DON'T DOUBT THAT THIS IS WHAT THEY HOPE TO GET BUT WHAT THEY MAY GET THROUGH NEGOTIATIONS MAY BE DIFFERENT MOST HEALTHCARE PLANS IN CALIFORNIA ARE OPERATING AT AFTERTAX MARGINS OF 3 TO 4 MR DAVIS ADDED THERE JUST ISN'T A LOT OF FLUFF LEFT IN THE SYSTEM FOUNDATION HOPES TO DISCIPLINE ITS OWN COSTS HE SAID BY DEVELOPING ITS OWN PRIMARY HEALTHCARE CENTERS AND BY ENTERING SUCH SPECIALTIES AS DENTAL AND PSYCHIATRIC CARE RATHER THAN CONTRACTING OUT FOR SUCH SERVICES TOM ELKIN CALPERS ASSISTANT EXECUTIVE OFFICER EXPLAINED IN AN INTERVIEW THAT THE 5 TARGET WAS BASED ON NUMEROUS STUDIES NOT ONLY OF INDIVIDUAL HMO FISCAL DATA BUT ALSO ON RAND CORP STUDIES SHOWING THE PERSISTENCE OF WASTE AND OVERUTILIZATION IN HEALTH CARE MR ELKIN SAID THE RAND STUDY DOCUMENTED EXCESSIVE CAESAREAN DELIVERIES OVERUSE OF MAGNETIC RESONANCE IMAGING SCANS OVERPRESCRIBING OF DRUGS AND PERFORMANCE OF UNNECESSARY SURGERY WHEN LESS INVASIVE PROCEDURES WOULD SUFFICE HE VEHEMENTLY DENIED THAT THE 5 ROLLBACK IS MERELY AN OPENING SALVO IN CONTRACT NEGOTIATIONS WE'RE VERY MUCH COMMITTED TO BRINGING IN A PREMIUM ROLLBACK OF 5 WE THINK IT'S POSSIBLE AND IT SHOULD BE DONE HE SAID PRINCETON UNIVERSITY HEALTHCARE ECONOMIST UWE REINHARDT SAID IN AN INTERVIEW YESTERDAY THAT SUCH A PLAN IS MORE A TOPDOWN BUDGET MODEL THAN TRUE MANAGED COMPETITION BUT HE ADDED THAT THE GOAL WAS PROBABLY ACHIEVABLE IF I RAN A HEALTH PLAN I COULD PROBABLY ACHIEVE IT DR REINHARDT SAID IF THEY HAVE A BUDGET THEY'LL HAVE TO LIVE WITH IT THEY'LL FIRE WHO NEEDS TO BE FIRED OR RATION WHAT NEEDS TO BE RATIONED 9310140037 931014 ODD COUPLE PRIEST AND WEALTHY MATRON UNITE AGAINST DRUGS BUT TOWN OF CULIACAN MEXICO COWED BY NARCOCULTURA' TURNS A DEAF EAR TO PROTEST BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL CULIACAN MEXICO ANTONIO DIAZ AND MERCEDES MURILLO ARE AS UNLIKELY A PAIR AS YOU WILL EVER MEET HE IS A BEARDED 45YEAROLD LEFTIST PRIEST WHO ENJOYS BLACK GOSPEL MUSIC AND WEARS HIS POVERTY WITH PRIDE SHE IS A 57YEAROLD ATTORNEY PARTIAL TO PEARLS CONSERVATIVE POLITICS AND THE MUSIC OF JOHANN STRAUSS BUT THE TWO ARE UNITED IN A LONELY CRUSADE THEY ARE TAKING ON THE DRUG LORDS IN THIS STEAMY WESTERN CORNER OF MEXICO NORTH OF PUERTO VALLARTA KNOWN AS LITTLE MEDELLIN BECAUSE IT HAS PRODUCED MORE CAPOS THAN ANY OTHER PART OF MEXICO AND DOMINATES MEXICO'S BURGEONING DRUG TRADE BY FOLLOWING IN THE BLOODY TRADITION OF COLOMBIA ASSASSINATIONS AND RANDOM KILLINGS ARE NOT UNCOMMON HERE DRUG LORDS THROUGH ACTS OF GENEROSITY HAVE LARGELY COOPTED THE POOR SO FAR THE CRUSADERS ARE LOSING DAILY ONE OF THE THINGS YOU NOTICE HERE IS THAT LAWS DON'T MATTER SAYS THE PRIEST WHO IS KNOWN AS PADRE TONO HERE THE LAW IS SOMETHING YOU BUY AND SELL THE PRIEST AND THE WEALTHY MATRON THE WIFE OF AN INDUSTRIALIST MET YEARS AGO WHEN SHE WAS ATTENDING HIS CHURCH HERE IN CULIACAN AND HE WAS SOLICITING CONTRIBUTIONS FOR CARITAS A CATHOLIC CHARITY HE CHIDED HER ABOUT HER WEALTH BUT THE TWO HAD ONE THING IN COMMON THEY SHARED A CONCERN ABOUT THE NARCOTICS ROT OVERTAKING THEIR CITY THEY BECAME FAST FRIENDS THE RELATIONSHIP TURNED INTO A CRUSADE AFTER SHE RAN FOR MAYOR WITH HIS SUPPORT AND LOST LATE LAST YEAR IN WHAT BOTH FELT WAS A RIGGED ELECTION PADRE TONO AND MRS MURILLO MOUNTED A ROUNDTHECLOCK 63DAY PROTEST IN FRONT OF CITY HALL IN THE WEE HOURS OF NEW YEAR'S DAY POLICE SWEPT IN DEMONSTRATORS WENT LIMP IN ACTS OF CIVIL DISOBEDIENCE MRS MURILLO WAS DRAGGED AWAY MANY OF HER WELLTODO WOMEN FRIENDS ALSO WERE HAULED OFF PADRE TONO WAS CONKED ON THE HEAD SUPPORTERS AT THE SKIRMISH SHOUTED HE'S A PRIEST HE'S A PRIEST A COP GROWLED BACK HE'S ALSO A MAN TWO WEEKS LATER THE PRETTY RIVER WALK IN CULIACAN ERUPTED IN AN AL CAPONESTYLE SHOOTING SPREE GUNMEN ALLEGEDLY DRUG LORDS SPRAYED THE PLACE WITH BULLETS LEAVING SEVERAL BYSTANDERS INCLUDING TWO CHILDREN DEAD AFTER THE INCIDENT MRS MURILLO AND PADRE TONO FOUNDED THE SINALOAN CIVIC FRONT TO FIGHT FOR ELECTORAL JUSTICE A CURBING OF POLICE POWER AND A CRIPPLING OF WHAT IS KNOWN HERE AS LA NARCOCULTURA PADRE TONO AND MRS MURILLO TOOK TO THE STREETS AGAIN LEADING HUNDREDS OF PEOPLE IN A PROTEST AGAINST THE DRUG VIOLENCE BUT NO ONE IN CITY GOVERNMENT SEEMED PARTICULARLY IMPRESSED THAT HAS BEEN A PROBLEM FOR THE CRUSADERS NO MATTER HOW MUCH THEY PROTEST THEY CAN'T SEEM TO GET ANYONE TO NOTICE THE NARCOTICS CULTURE SO SATURATES CULIACAN AND THE SURROUNDING STATE OF SINALOA THE ROOTS GO BACK TO THE TURN OF THE CENTURY WHEN OPIUM POPPIES WERE SEEDED HERE BY CHINESE IMMIGRANTS IN TIME THE COLORFUL FLOWER EVEN BLOOMED AT THE CATHEDRAL PLAZA AND WAS USED TO FLAVOR SAUCES IN THE NEIGHBORING SIERRA MADRE BY WORLD WAR II MEXICAN POPPIES WERE BEING USED TO MAKE MORPHINE TO TREAT US SOLDIERS WOUNDED IN EUROPE SOON THERE WAS A MARKET FOR MEXICAN HEROIN MARIJUANA FOLLOWED AND BY THE 1980S THE COFFERS OF THE SINALOA DRUG CARTEL WERE AWASH IN DRUG MONEY FROM AN EXPANDED PRODUCT LINE THAT NOW INCLUDES COCAINE PASSING THROUGH MEXICO COCA ISN'T GROWN IN THIS COUNTRY THE DRUG LORDS ENFORCE THEIR CONTROL PARTLY THROUGH FEAR FARMERS COMPLAIN FOR INSTANCE ABOUT A RASH OF DRUGRELATED KIDNAPPINGS MANY CITIZENS SUSPECT THAT THE DRUG LORDS WERE BEHIND A RECENT RASH OF COP KILLINGS TEN OFFICERS HAVE BEEN KILLED INCLUDING THE DEPUTY POLICE CHIEF BUT THE DRUG TRAFFICKERS ARE BENEFICENT FOR INSTANCE THEY HAVE BROUGHT ELECTRICITY TO THE REMOTE POOR SIERRA STORE OWNERS NOW PEDDLE CASSETTES OF CORRIDOS FOLK BALLADS THAT ROMANTICIZE NARCOS' LIVES ASKED ABOUT ONE OF SINALOA'S MOST INFAMOUS SONS RAMON BELTRAN A BALLADWRITER WHO LIVES ON HIS CORRIDO ROYALTIES PRAISES HIM AS A NOBLE MAN THE MOST PROMINENT TESTIMONY TO THE STRENGTH OF THE DRUG CULTURE THOUGH IS A CHAPEL RESEMBLING A TIN WAREHOUSE THE DRUG CAPOS BUILT HERE TO JESUS MALVERDE HE WAS A MEXICAN ROBIN HOOD WHO DIED IN 1909 AND INSPIRES DEVOTION FROM THE POOR THE DRUG LORDS COME TO THE CHAPEL TO SEEK HIS BLESSING FOR THEIR PROFITEERING TO TOUCH HIS BUST AS IF IT WERE A ROMAN CATHOLIC ICON ALL THE NARCOS PASS THROUGH HERE SAYS CHAPEL GUARD ROBERTO FELIX THE CATHOLIC CHURCH MIGHT BE EXPECTED TO SUPPORT PADRE TONO SHE AND MRS MURILLO TACKLE THE DRUG LORDS AT LEAST TO OPPOSE A CHAPEL IN WHICH JESUS MALVERDE IS WORSHIPED AS A GOD BUT THE MEXICAN CHURCH RESPONSE TO THE CHAPEL HAS BEEN MEEK THE BISHOP HERE SAYS A PAMPHLET HAS BEEN PREPARED WARNING PARISHIONERS AWAY FROM THE CHAPEL BUT NO ONE MANAGES TO PRODUCE A COPY EVEN WHEN A VISITOR MAKES SIX TRIPS TO A CULIACAN CHURCH OFFICE IN SEARCH OF ONE MANY CHURCH LEADERS SEEM TO BE IN DENIAL THEY QUIETLY TRY TO DEFLECT ATTENTION FROM THE LABOR OF THE LAWYER AND THE CLERIC SOME OF THE BIG CAPOS WERE BORN HERE BUT NOW THEY ARE IN PRISON OR AWAY FROM HERE SAYS CULIACAN'S BISHOP LUIS ROJAS MENA THE CHURCH HAS PRETTY MUCH ABANDONED THE RUGGED SIERRA MADRE ABOVE CULIACAN IN THE MOUNTAINS ABOVE TINY REMOTE TOMO AN HOUR AND A HALF EAST OF CULIACAN MANY OF THE FARMERS WORK FOR THE DRUG LORDS AT LOW PAY THEIR ALTERNATIVE IS HARVESTING PALM LEAVES FOR THATCHED ROOFS EARNING A MEAGER 20 FOR EVERY 2000 LEAVES PRODUCED BUT LOCALS SAY FEW PRIESTS HAVE EVER ENTERED THE ONEBELL BRICK CHURCH THERE TO MINISTER IN TOMO THE ONLY TIME WE SEE A PRIEST IS WHEN THEY'RE LOST SAYS NATIVIDAD ZARZUETA REYES AN AGING TOMO RESIDENT THEY'VE FORGOTTEN US GOVERNMENT OFFICIALS TOOK SOME ACTION AGAINST THE DRUG LORDS AFTER THE MUCH PUBLICIZED MURDER LAST MAY OF A CATHOLIC CARDINAL IN GUADALAJARA BY GANGS WITH SINALOAN ROOTS PRESIDENT CARLOS SALINAS DE GORTARI'S ATTORNEY GENERAL SACKED HIS DEPUTY IN SINALOA ALONG WITH THE ENTIRE FORCE OF FEDERAL AGENTS IN THE STATE BUT WHEN A PAPAL ENVOY CAME TO CULIACAN SOON THEREAFTER THE HOUSECLEANING APPARENTLY HADN'T CALMED HIS NERVES HE WORE A BULLETPROOF VEST AND WAS PROTECTED AT ONE EVENT BY 200 MILITARY GUARDS AS FOR PADRE TONO AND MRS MURILLO THEY WILL JUST STRUGGLE ALONG WITHOUT MUCH HOPE OF SUCCESS THEY BOTH VISIT THE LOCAL JAILS TRYING TO TALK PRISONERS INTO GIVING UP THE DRUG BUSINESS MRS MURILLO MONITORS PRISON CONDITIONS FILES LEGAL COMPLAINTS AND SOMETIMES PUTS UP BAIL MONEY PADRE TONO DELIVERS SACRAMENTS HE ALSO HEADS THE HUMANRIGHTS UNIT OF THE NALOAN CIVIC FRONT MRS MURILLO EXCORIATES BANKERS WHO DON'T QUESTION THE SOURCES OF BIG DEPOSITS IF YOU TAKE NARCOMONEY YOU'RE AN ACCOMPLICE SHE SAYS THE PRIEST REFUSES TO CELEBRATE RELIGIOUS SERVICES FOR EVENTS SUSPICIOUSLY EXTRAVAGANT LAVISH DISPLAYS OF WEALTH OFFEND GOD HE SAYS TICKING OFF CELEBRATIONS HE BELIEVES WERE PAID FOR BY DRUG MONEY HE USES HIS PULPIT IN THE SANCTUARY OF THE SACRED HEART TO ATTACK THE DRUG LORDS ON A RECENT STEAMY SUNDAY MORNING THE SANCTUARY WAS ROCKING WITH GOSPEL MUSIC AND THE BUZZING OF ELECTRIC FANS THE CHURCH SWELLED WITH THE HALLELUJAHS OF A SWEETVOICED SOLOIST I AM OFFERING AS OUR SIGN THE CROSS SAID THE PRIEST PUNCHING THE AIR WITH HIS FINGER I AM NOT OFFERING AS OUR SIGN EL DOLLAR 9310140036 931014 PRUDENTIAL PLANS PUBLIC OFFERING OF MALL UNIT INSURER'S SALE OF 87 STAKE FOR 585 MILLION COMES AMID BOOM IN REITS BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL PRUDENTIAL INSURANCE CO OF AMERICA PLANS TO SELL THE PUBLIC AN 87 STAKE IN A MALL SUBSIDIARY IN A 585 MILLION OFFERING ITS LARGEST SINGLE MOVE TO DATE TO REDUCE ITS REALESTATE EXPOSURE THE OFFERING REPRESENTS THE FIRST ATTEMPT BY AN INSURANCE COMPANY TO TAKE ADVANTAGE OF THE BOOMING MARKET FOR NEW REAL ESTATE INVESTMENT TRUSTS AS A MEANS OF SELLING OFF COMMERCIAL REAL ESTATE IT NO LONGER WANTS WITH NEW ACCOUNTING RULES SET TO GO INTO EFFECT AT YEAR END THAT WILL PENALIZE INSURANCE COMPANIES WITH EXTENSIVE REAL ESTATE HOLDINGS MANY OTHER INSURERS ARE ALSO LOOKING FOR WAYS TO REDUCE THEIR HOLDINGS SOME ARE ALSO PLANNING REITS WHILE OTHERS PLAN TO FOLLOW THE LEAD OF TRAVELERS CORP WHICH RECENTLY ANNOUNCED A 634 MILLION BULK SALE MANY OTHERS HAVE BEEN SELLING PROPERTIES PIECEMEAL PRUDENTIAL BASED IN NEWARK NJ ACQUIRED THE MALL COMPANY CENTERMARK PROPERTIES INC BASED IN ST LOUIS LAST YEAR WHEN IT DISSOLVED A JOINT VENTURE IT FORMED IN 1988 WITH MAY DEPARTMENT STORES INC THE ORIGINAL DEVELOPER OF THE MALLS IT OWNS 16 LARGE REGIONAL MALLS THREE LARGE SHOPPING CENTERS AND SEVERAL OTHER REAL ESTATE ASSETS WITH MANY OF THE PROPERTIES IN CALIFORNIA AND MISSOURI ALTHOUGH MORE THAN 25 PRIVATELY OWNED REAL ESTATE COMPANIES HAVE GONE PUBLIC THIS YEAR THE PRUDENTIAL DEAL WILL BE CLOSELY WATCHED BECAUSE IT IS THE FIRST MAJOR DEAL IN WHICH AN OWNER WILL BE CASHING OUT TO SUCH A DEGREE IN MANY EARLIER OFFERINGS DEVELOPERS USED THE MONEY RAISED TO REDUCE EXCESSIVE DEBT LOADS AND RETAINED FAR MORE THAN THE 13 STAKE THAT PRUDENTIAL WILL KEEP THE MARKET IS GOING TO TREAT CASHOUTS DIFFERENTLY THAN IT TREATS GUYS THAT ARE DOING DEALS TO RECAPITALIZE THEIR COMPANIES AND CONTINUE DOING WHAT THEY'VE ALWAYS DONE PREDICTED MIKE KIRBY A REIT ANALYST WITH GREEN STREET ADVISORS OF NEWPORT BEACH CALIF FOR EXAMPLE MALL TYCOONS EDWARD DEBARTOLO AND MELVIN SIMON WHO BOTH FILED RECENTLY TO TAKE THEIR COMPANIES PUBLIC PLAN TO RETAIN LARGE STAKES IN THEIR COMPANIES MR KIRBY WHO HAD NOT YET SEEN THE CENTERMARK FILING SAID THAT INSURANCE COMPANIES WOULD HAVE TO CONVINCE INVESTORS THAT MANAGEMENT WOULD HAVE INCENTIVES TO PERFORM AS WELL AS DEVELOPERS WHO HAVE THEIR WHOLE NET WORTH TIED UP IN A COMPANY AN INCENTIVE PROGRAM HAS YET TO BE FINALIZED FOR THE EXECUTIVES WHO WILL RUN CENTERMARK ACCORDING TO AN INDIVIDUAL FAMILIAR WITH THE OFFERING IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION LATE TUESDAY CENTERMARK INDICATED THAT IT WOULDN'T RECEIVE ANY OF THE PROCEEDS OF THE OFFERING BUT DIDN'T SPECIFY HOW MUCH WOULD BE LEFT FOR PRUDENTIAL AFTER TRANSACTION COSTS CONCURRENT WITH THE OFFERING HOWEVER PRUDENTIAL PLANS TO EXTEND THE COMPANY A NEW 210 MILLION MORTGAGE THE FILING INDICATED THAT UNSPECIFIED AMOUNTS OF THIS MONEY WOULD GO TO REDEVELOPING CERTAIN MALLS WORKING CAPITAL AND TO PRUDENTIAL SPOKESMEN FOR CENTERMARK AND PRUDENTIAL DECLINED COMMENT AS DID OFFICIALS AT MORGAN STANLEY & CO LEAD UNDERWRITER ON THE OFFERING CITING SEC PROHIBITIONS AGAINST DISCUSSING PENDING OFFERINGS PRUDENTIAL CURRENTLY OWNS ABOUT 9 BILLION WORTH OF REAL ESTATE AND EXPECTS TO SELL ABOUT 700 MILLION OF THAT IN SEPARATE DEALS THIS YEAR 9310140034 931014 WEDNESDAY'S MARKETS ACQUISITION NEWS PUSHES STOCKS HIGHER BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL SURGING COMMUNICATIONS STOCKS HELPED DRIVE STOCK PRICES MOSTLY HIGHER BOND PRICES AND THE DOLLAR WERE MIXED THE DOW JONES INDUSTRIAL AVERAGE GAINED 1006 POINTS TO 360319 ENDING ABOVE THE 3600 LEVEL FOR THE FIRST TIME SINCE SEPT 17 STANDARD & POOR'S 500STOCK INDEX ROSE 037 TO 46149 AND THE NASDAQ COMPOSITE INDEX CLIMBED 651 TO A RECORD 77897 ANALYSTS SAID THE PLANNED ACQUISITION OF CABLE OPERATOR TELECOMMUNICATIONS BY BELL ATLANTIC PROVIDED UNDERLYING STRENGTH FOR THE STOCK MARKET MEDIA ENTERTAINMENT AND MOBILE COMMUNICATIONS STOCKS ALL GOT A BOOST FROM THE NEWS THE NASDAQ COMPOSITE OUTPERFORMED OTHER MAJOR INDEXES AND VOLUME SOARED TO A RECORD 4154 MILLION SHARES BECAUSE THAT MARKET TRADES MANY COMMUNICATIONS STOCKS JOHN SHAUGHNESSY DIRECTOR OF RESEARCH AT ADVEST INC IN HARTFORD CONN NOTED THAT THE NASDAQ COMPOSITE HAS PRODUCED FAR GREATER GAINS THAN THE INDUSTRIAL AVERAGE FOR AT LEAST A YEAR BUT IF THE ECONOMY PICKS UP THEN THE BIGCAP NAMES COULD CLOSE THE GAP HE SAID MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER & CO COUNTERED THAT YESTERDAY'S RUSH TO TELECOMMUNICATIONS STOCKS IS PART OF A GROWING SPECULATIVE FEVER IN THE MARKET SUCH SPECULATION SUGGESTS THE BULL MARKET MAY BE WINDING DOWN HE SAID THE WHOLE MOOD IN THE MARKET IS AN ABSOLUTE DESPERATE SEARCH FOR PERFORMANCE MR METZ SAID WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX SLIPPED 029 TO 11313 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2909 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 953 ISSUES ROSE AND 1004 FELL LONGTERM BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED LESS THAN AN EIGHTH OF A POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 591 BUT SOME SHORTERTERM SECURITIES EDGED LOWER THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16015 MARKS AND 10595 YEN COMPARED WITH 15944 MARKS AND 10600 YEN TUESDAY 9310140033 931014 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ALEXANDER HAAGEN PROPERTIES INC AN INITIAL OFFERING OF 10 MILLION COMMON SHARES AN OFFERING OF 140 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES DUE 2003 AND A PRIVATE PLACEMENT OF 20 MILLION OF EXCHANGEABLE SUBORDINATED DEBENTURES DUE 2003 VIA NATWEST SECURITIES LTD CS FIRST BOSTON KEMPER SECURITIES INC OPPENHEIMER & CO AND SUTRO & CO LOMAS MORTGAGE USA INC A UNIT OF LOMAS FINANCIAL CORP AN OFFERING 100 MILLION OF SENIOR NOTES DUE 2003 VIA GOLDMAN SACHS & CO CS FIRST BOSTON LAZARD FRERES & CO AND SALOMON BROTHERS INC TOMMY HILFIGER CORP AN OFFERING OF 4250000 ORDINARY SHARES EXCLUDING CERTAIN SHARES SUBJECT TO AN OVERALLOTMENT OPTION VIA LEHMAN BROTHERS INC AND MORGAN STANLEY & CO VLSI TECHNOLOGY INC AN OFFERING OF SIX MILLION COMMON SHARES VIA SALOMON BROTHERS INC BEAR STEARNS & CO AND MONTGOMERY SECURITIES 9310140032 931014 WHO'S NEWS SCS/COMPUTE INC SCS/COMPUTE INC ST LOUIS IRWIN M JARETT COFOUNDER AND CHIEF EXECUTIVE OFFICER OF GRAPHIC MIS LP A CHICAGOBASED SOFTWARE DEVELOPMENT AND SYSTEM CONSULTING CONCERN WAS ELECTED A DIRECTOR OF THIS PROVIDER OF INCOME TAX RETURN AND ACCOUNTING MICROCOMPUTER SOFTWARE FILLING A VACANCY ON THE BOARD 9310140031 931014 WHO'S NEWS CYTOGEN CORP CYTOGEN CORP PRINCETON NJ THOMAS J MCKEARN PRESIDENT OF THIS BIOPHARMACEUTICAL COMPANY WILL ASSUME THE ADDITIONAL TITLE OF CHIEF EXECUTIVE OFFICER EFFECTIVE JANUARY 1994 DR MCKEARN 45 YEARS OLD SUCCEEDS GEORGE W EBRIGHT 56 WHO WILL REMAIN CHAIRMAN 9310140030 931014 LAW LEGAL BEAT GEORGIA AGENCY CAN BAR LESBIAN FROM EMPLOYMENT JUDGE RULES BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL A WOMAN WHO TOOK PART IN A RELIGIOUS WEDDING CEREMONY WITH HER LESBIAN PARTNER CAN BE BARRED FROM EMPLOYMENT WITH THE GEORGIA ATTORNEY GENERAL'S OFFICE A FEDERAL JUDGE RULED THE CASE RAISES QUESTIONS ABOUT HOW OPEN GAY MEN AND LESBIANS CAN BE ABOUT THEIR SEXUAL STATUS WITHOUT JEOPARDIZING THEIR JOBS LAWYERS SAID THE DECISION APPEARS TO APPLY THE IDEA OF DON'T ASK DON'T TELL THE NEW MILITARY POLICY ON HOMOSEXUALS TO THE CIVILIAN WORKPLACE ATLANTA ATTORNEY ROBIN SHAHAR WAS OFFERED A JOB IN 1991 IN THE GEORGIA DEPARTMENT OF LAW WHERE SHE HAD WORKED THE YEAR BEFORE AS AN INTERN MS SHAHAR ACCEPTED THE JOB AND WAS PREPARING TO BEGIN WORK WHEN ATTORNEY GENERAL MICHAEL BOWERS LEARNED OF HER PLANS TO BE MARRIED TO ANOTHER WOMAN AND WITHDREW THE JOB OFFER MS SHAHAR'S MARRIAGE CEREMONY WHICH WAS CONDUCTED BY A RABBI DIDN'T VIOLATE ANY LAWS OF GEORGIA AND SHE SUED CLAIMING THAT MR BOWERS HAD VIOLATED HER RELIGIOUS RIGHTS AND HER RIGHT TO ASSOCIATE WITH HER PARTNER AS A COUPLE JUDGE RICHARD FREEMAN RULED THAT MS SHAHAR'S CONSTITUTIONAL CONCERNS WERE OUTWEIGHED BY MR BOWERS'S WORRIES ABOUT HOW HIS OFFICE WOULD BE AFFECTED MR BOWERS MAINTAINED THAT HIRING MS SHAHAR WOULD UNDERMINE THE CREDIBILITY OF HIS OFFICE WHICH ENFORCES THE STATE'S SODOMY LAW AND THE STATE'S LAWS ON MARRIAGE WHICH ARE SILENT ON SAMESEX UNIONS THE COURT FINDS THAT THE BALANCE OF INTEREST TIPS IN FAVOR OF THE ATTORNEY GENERAL'S ASSERTIONS REGARDING THE EFFICIENT OPERATION OF THE DEPARTMENT JUDGE FREEMAN SAID IN HIS DECISION MEMBERS OF THE PUBLIC COULD VIEW THE DEFENDANT AS ACTING INCONSISTENTLY IF HE EMPLOYED MS SHAHAR BUT ALSO ARGUED IN VARIOUS TYPES OF CASES THAT HOMOSEXUAL UNIONS CARRY NO LEGAL BENEFIT GEORGIA HAS NO LAW PROTECTING HOMOSEXUALS FROM DISCRIMINATION IN THE WORKPLACE NONETHELESS JUDGE FREEMAN MADE A POINT OF RULING THAT MR BOWERS'S POLICY WASN'T DISCRIMINATORY BECAUSE IT BARRED THE HIRING OF ONLY THOSE HOMOSEXUALS WHO MADE THEIR STATUS PUBLIC GAYRIGHTS ADVOCATES AND ATTORNEYS WHO HANDLE DISCRIMINATION CASES SAID JUDGE FREEMAN'S RULING IS AT ODDS WITH OTHER DECISIONS ON JOB PROTECTION FOR HOMOSEXUALS PAUL F WOTMAN AN ATTORNEY IN SAN FRANCISCO SAID OTHER COURTS HAVE FOUND THAT PRIVATE INFORMATION ABOUT A WORKER CAN'T BE USED TO BAR THEM FROM A JOB I WOULD THINK THAT NOT HIRING SOMEONE BECAUSE OF A HOMOSEXUAL WEDDING CONDUCTED OFF THE JOB WOULD VIOLATE EVEN GEORGIA'S RIGHT TO PRIVACY HE SAID WHEN THE GOVERNMENT IS THE EMPLOYER COURTS HAVE REQUIRED AN EVEN STRONGER SHOWING THAT THE PRIVATE BEHAVIOR IS RELATED TO THE INDIVIDUAL'S JOB QUALIFICATIONS SAID EVAN WOLFSON AN ATTORNEY AT LAMBDA LEGAL DEFENSE AND EDUCATION FUND A GAY RIGHTS GROUP RUTH HARLOW AN ATTORNEY FOR MS SHAHAR WITH THE AMERICAN CIVIL LIBERTIES UNION SAID JUDGE FREEMAN'S RULING WILL BE APPEALED SHE MAINTAINED THAT THE JUDGE AT LEAST SHOULD HAVE HELD A TRIAL REQUIRING MR BOWERS TO SHOW HOW MS SHAHAR'S MARRIAGE WOULD HAVE UNDERMINED HIS OFFICE MR BOWERS SAID JUDGE FREEMAN'S REASONING COULD USEFULLY BE APPLIED TO OTHER SITUATIONS INVOLVING GOVERNMENT HIRING SOMEONE IN THIS OFFICE MIGHT HAVE STRONG POLITICAL VIEWS THAT IF MADE PUBLIC COULD INTERFERE WITH THE WORK OF THIS OFFICE HE SAID WHAT IF I HAD AN AVOWED NAZI WOULD I BE REQUIRED TO HIRE THEM A CONFIDENTIAL GOVERNMENT INFORMANT WHO WAS ATTACKED IN PRISON AFTER HIS COOPERATION WAS REVEALED TO THE MEDIA CAN'T SUE THE PROSECUTOR FOR MAKING THE DISCLOSURE A FEDERAL APPEALS COURT HAS RULED IN AN 84 DECISION THE FULL EIGHTH US CIRCUIT COURT OF APPEALS ADOPTED THE PROSECUTOR'S VIEW THAT HE WAS SHIELDED FROM A LAWSUIT BY QUALIFIED IMMUNITY GRANTED TO GOVERNMENT OFFICIALS EXERCISING CERTAIN AUTHORITY THE DECISION REVERSES PRIOR DECISIONS BY A DISTRICT COURT IN MINNESOTA AND A SMALLER PANEL OF THE APPELLATE COURT THAT HAD FOUND THAT THE PROSECUTOR GEORGE WIDSETH OF HENNEPIN COUNTY WAS NOT ENTITLED TO SUCH IMMUNITY THE CASE WAS BROUGHT BY CHARLES LATTIMORE A FORMER GANG MEMBER WHO ENTERED INTO A PLEA DEAL WITH MR WIDSETH THAT INCLUDED AN AGREEMENT TO IMPLICATE TWO MEMBERS OF HIS FORMER GANG IN A SEPARATE CASE SOME TIME LATER UNDER QUESTIONING FROM REPORTERS THE PROSECUTOR DISCLOSED THE AGREEMENT MR LATTIMORE CLAIMED HIS CONSTITUTIONAL RIGHTS WERE VIOLATED BECAUSE THE DISCLOSURE ALLEGEDLY LED TO THE ATTACK IN PRISON IN REACHING ITS DECISION THE APPEALS COURT FOUND IT SIGNIFICANT THAT THE PLEA AGREEMENT HAD BEEN MADE PART OF THE PUBLIC RECORD AND HAD BEEN DISCLOSED WITH MR LATTIMORE'S KNOWLEDGE TO AT LEAST TWO ATTORNEYS FOR OTHER GANG MEMBERS FURTHER THE COURT MAJORITY SAID NO OTHER COURT HAS HELD A PROSECUTOR LIABLE FOR VIOLATING PRISONERS' CONSTITUTIONAL RIGHTS AS A RESULT OF HIS TRUTHFUL STATEMENT TO THE PRESS IN ADDITION IT SAID THE PROSECUTOR HAD NEITHER THE RESPONSIBILITY NOR THE ABILITY TO PROTECT THE PLAINTIFF FROM HARM IN PRISON THE FOURMEMBER DISSENT HOWEVER FOUND IT SIGNIFICANT THAT THE PROSECUTOR HAD PROMISED HE WOULD NOT REVEAL THE DETAILS OF THE PLEA AGREEMENT TO ANYONE WHO WAS NOT LEGALLY ENTITLED TO SEE IT THE DISSENT CONCLUDED THAT HE SHOULD HAVE FORESEEN THAT HIS ACTIONS WOULD LEAD TO POTENTIAL DANGER TO MR LATTIMORE MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE 9310140029 931014 COUNCIL VOTES TO IMPOSE SANCTIONS AGAIN ON HAITI WASHINGTON THE UNITED NATIONS SECURITY COUNCIL VOTED UNANIMOUSLY TO REIMPOSE SANCTIONS ON HAITI IN FIVE DAYS IF THAT NATION'S MILITARY REFUSES TO ABIDE BY AN ACCORD THAT WOULD LEAD TO THE RESTORATION OF DEMOCRACY THE PENALTIES APPROVED BY THE 15MEMBER COUNCIL INCLUDE AN ARMS AND OIL EMBARGO AND A FREEZE ON ASSETS HELD ABROAD BY HAITI'S MILITARY AND OTHERS WHO SUPPORTED THE COUP THAT DROVE PRESIDENT JEANBERTRAND ARISTIDE FROM OFFICE IN SEPTEMBER 1991 THESE SANCTIONS HAD BEEN IMPOSED IN JUNE AND SUSPENDED IN AUGUST WHEN GEN RAOUL CEDRAS THE ARMY COMMANDER AGREED TO A PROCESS THAT IS INTENDED TO LEAD TO MR ARISTIDE'S RETURN ON OCT 30 THE SECURITY COUNCIL ACTED SEVERAL DAYS AFTER A HAITIAN MOB BLOCKED THE LANDING OF A US MILITARY VESSEL CARRYING ABOUT 200 US AND CANADIAN TROOPS TO PORTAUPRINCE PRESIDENT CLINTON ORDERED THE SHIP TO LEAVE WHEN IT BECAME CLEAR THAT CONDITIONS WERE TOO THREATENING THE RESOLUTION THREATENS FURTHER SANCTIONS IF HAITI'S MILITARY CONTINUES TO REFUSE TO HONOR THE ACCORD OFFICIALS WERE GROWING INCREASINGLY MORE PESSIMISTIC YESTERDAY ABOUT THE ACCORD'S PROSPECTS HAITI'S MILITARY IS BELIEVED TO HAVE STOCKPILED ABOUT TWO MONTHS OF FUEL AND OTHER SUPPLIES LEADING TO THE POSSIBILITY OF A PROLONGED STANDOFF 9310140028 931014 DRUGSTORES PLAN TO SUE PHARMACEUTICAL CONCERNS A WALL STREET JOURNAL NEWS ROUNDUP NEW YORK TWENTYTWO OF THE NATION'S LARGEST RETAIL DRUGSTORE CHAINS PLAN TO FILE AN ANTITRUST LAWSUIT TODAY AGAINST 11 PHARMACEUTICAL COMPANIES RITE AID CORP SAID THE SUIT WILL CHARGE PRICE DISCRIMINATION AND CONSPIRACY TO FIX PRICES THROUGH ILLEGAL COMBINATIONS RITE AID CHAIRMAN AND CHIEF EXECUTIVE ALEX GRASS AND REVCO DS INC SENIOR VICE PRESIDENT JACK STAPH WILL FORMALLY ANNOUNCE THE LAWSUIT HERE THIS MORNING A RITE AID SPOKESWOMAN DECLINED TO NAME THE DEFENDANTS SHE SAID THE SUIT REPRESENTS THE CULMINATION OF A LONGSIMMERING DISPUTE BETWEEN DRUGSTORES AND MAJOR PHARMACEUTICAL COMPANIES ON PRICING A SPOKESWOMAN FOR REVCO SAID THE DRUGSTORE CHAINS WILL ALLEGE IN THE SUIT THAT THE PHARMACEUTICAL CONCERNS CHARGE THEM MORE FOR DRUGS THAN THEY CHARGE HEALTH MAINTENANCE ORGANIZATIONS HOSPITALS AND MAILORDER DRUG COMPANIES RITE AID'S SPOKESWOMAN SAID THE RECENTLY AGREEDUPON MERGER OF MERCK & CO AND MEDCO CONTAINMENT SERVICES INC THE NATION'S LARGEST MAILORDER PRESCRIPTION DRUG COMPANY MAY HAVE ADDED TO THE URGENCY OF THE SUIT 9310140027 931014 GREENSPAN FIRMLY OPPOSES CHANGES TO CENTRAL BANK WASHINGTON FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SAID ENACTING CONGRESSIONAL PROPOSALS TO ALTER THE CENTRAL BANK WOULD BE A MAJOR MISTAKE THAT PUTS THE ECONOMY AT RISK MR GREENSPAN ACKNOWLEDGED THAT PROPONENTS OF THE BILL INSIST THEY DON'T SEEK TO POLITICIZE THE FED OR INFRINGE ON ITS INDEPENDENCE BUT HE SAID WHATEVER ITS INTENT LEGISLATION OF THIS TYPE WOULD HAVE PRECISELY THAT DELETERIOUS EFFECT ONE BILL WOULD STRIP PRESIDENTS OF REGIONAL FEDERAL RESERVE BANKS OF THEIR VOTES ON MONETARY POLICY ANOTHER WOULD MAKE THEM PRESIDENTIAL APPOINTEES CURRENTLY THEY ARE APPOINTED BY LOCAL BOARDS OF DIRECTORS DOMINATED BY COMMERCIAL BANKS SUBJECT TO APPROVAL OF THE FED BOARD OF GOVERNORS IN WASHINGTON THE FIRST MR GREENSPAN SAID WOULD MAKE IT HARDER TO RECRUIT HIGHCALIBER BANK PRESIDENTS THE SECOND RAISES THE POTENTIAL FOR INCREASED PARTISANSHIP THAT WOULD ERODE THE QUALITY OF POLICY HE SAID MR GREENSPAN ALSO REJECTED A THIRD PROPOSAL OFFERED BY REP JAMES LEACH R IOWA THAT FED REGIONAL BANK PRESIDENTS BE CHOSEN BY THE FED GOVERNORS MR LEACH ARGUED THAT MODEST CHANGE NOW WOULD PREVENT PRESSURE FOR RADICAL CHANGE LATER AFTER THE HEARING HE SAID THE FED MAY BE OVERESTIMATING ITS POLITICAL STRENGTH FOR MODEST CHANGE HE SAID THERE'S A MUCH LARGER CONSENSUS THAN THEY SUSPECT 9310140026 931014 INTERNATIONAL EC US REMAIN STALLED OVER FARM ACCORD ISSUE BRUSSELS THE EUROPEAN COMMUNITY AND THE US FAILED TO BREAK A DEADLOCK OVER EC DEMANDS FOR CHANGES TO LAST YEAR'S BLAIR HOUSE FARM TRADE ACCORD AND MADE SCANT PROGRESS IN OTHER AREAS DIMMING HOPES FOR A WORLD TRADE PACT BY DEC 15 US TRADE REPRESENTATIVE MICKEY KANTOR AND EC TRADE COMMISSIONER SIR LEON BRITTAN ALSO REJECTED A FRENCH CALL FOR AN INTERIM DEAL THAT WOULD EXCLUDE AGRICULTURE THEIR COMMENTS COUPLED WITH A STRONGLY WORDED WARNING AGAINST PROTECTIONISM DELIVERED BY GERMAN CHANCELLOR HELMUT KOHL TO THE FRENCH SENATE HEIGHTENED FRANCE'S ISOLATION IN THE SOCALLED URUGUAY ROUND OF TALKS BEING HELD UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE MR KOHL SAID IT WOULD BE A FATAL ERROR TO BELIEVE THAT WEST EUROPEANS COULD BENEFIT FROM WITHDRAWING FROM COMPETITION BY SHUTTING OFF THEIR MARKETS THE FRENCH GOVERNMENT CONTINUED TO ARGUE IT ISN'T NECESSARY TO REACH A FULL DEAL IN THE URUGUAY ROUND BY DEC 15 WHEN THE US ADMINISTRATION'S FASTTRACK NEGOTIATING MANDATE RUNS OUT FRANCE HAS THREATENED TO VETO AN AGREEMENT IN THE URUGUAY TALKS UNLESS BLAIR HOUSE IS ALTERED TO REDUCE ITS IMPACT ON FRENCH FARMERS A POWERFUL LOBBY BUT MR KANTOR REITERATED AT A NEWS CONFERENCE THAT WE ARE NOT GOING TO EITHER RENEGOTIATE OR REOPEN THE BLAIMENT 9310140025 931014 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN COMMUNITY HOSPITALS HUSTLE TO FIND A PLACE AMONG NEW MANAGEDCARE NETWORKS RIVALRY CAN BE FIERCE SOME HOSPITALS MAY FOLD THE IDEA IS TO PROVIDE A BROAD CONTINUUM OF CARE TO A COMMUNITY FOR A PERCAPITA FEE SAYS THE AMERICAN HOSPITAL ASSOCIATION'S CARMELA DYER COLLABORATION MAY MEAN SIGNING ON WITH A BIG INSURER OR TEAMING UP WITH NEARBY HOSPITALS TO FORM A WEB OF SERVICE MANY HOSPITALS ARE BEING CAUGHT IN A CROSSFIRE SAYS FRANK TIEDEMANN AN OFFICIAL OF THE JOHN MUIR MEDICAL CENTER NEAR SAN FRANCISCO IN NEW JERSEY MANY OF THE 29 HOSPITALS LEFT OUT OF A HUGE BLUE CROSS AND BLUE SHIELD NETWORK STRIKE DISCOUNT DEALS WITH OTHER PAYERS WE GOT SHUT OUT OF BLUE CROSS BUT WE'RE PLAYING THE GAME WITH OTHER FOLKS LIKE PRU CARE AND MET LIFE SAYS SEAN O'ROURKE OF DOVER GENERAL HOSPITAL DOVER NJ IN TEXAS IRVING HEALTHCARE SYSTEM IS GOING IT ALONE AGGRESSIVELY CONTRACTING FOR MANAGED CARE BUT RICHARDSON MEDICAL CENTER PLANS TO AFFILIATE WITH A BIG DALLAS HOSPITAL TO LAND MORE BUSINESS IN MICHIGAN BOTSFORD HOSPITAL JOINS A BIG BLUE CROSS/BLUE SHIELD NETWORK BUT TOUTS ITS HISTORY IN THE COMMUNITY TRY IT BUY IT AN OLD MARKETING STRATEGY GETS SOME NEW WHEELS SEVERAL FIRMS HAUL PRODUCTS DIRECTLY TO CONSUMERS VIA TRUCKS TELEDYNE'S WATER PIK UNIT ROLLED OUT A RIG EQUIPPED WITH ITS ORIGINAL SHOWER MASSAGE SHOWERS TO REFRESH RIDERS IN A CHARITY BIKE TOUR THEN DETOURED TO HELP FLOOD VICTIMS THE TRUCK WENT OVER REALLY WELL SAYS TELEDYNE'S DAVID RAMSAY WHO ADDS THAT A SHOWER HEAD IS A TOUGH PRODUCT TO GET PEOPLE TO TRY A TRUCK FROM TIME WARNER'S COOKING LIGHT MAGAZINE TEAMS UP WITH FOOD FIRMS TO BRING DISPLAYS TO SUPERMARKET PARKING LOTS THE GROCERYSTORE PROMO LINKS RETAILER MANUFACTURER AND CONSUMER WITH THE MAGAZINE IN THE MIDDLE SAYS JEFF WARD PUBLISHER RALPH LAUREN USES AN 18WHEELER AS AN ONCAMPUS STORE MEANWHILE FRENCH DESIGNERS MARITHE AND FRANCOIS GIRBAUD AIM FOR THE HIGHROAD BY PROMOTING PEACE VIA A TRUCKED IN DISPLAY BUT SUCH VAN PROGRAMS CAN BE EXPENSIVE SAYS BDS MARKETING IN CALIFORNIA SPONSORS HELP DEFRAY COSTS VERSATILE VERSIONS OF PREPAID CARDS PAY OFF AT SCHOOL AND IN THE OFFICE UNLIKE THEIR PHONE OR FARECARD COUSINS PREPAID CARDS CAN BE USED FOR A VARIETY OF PURCHASES AND ARE GETTING A TRYOUT IN SOME DISTINCT MARKETS MONEY ACCESS SERVICE INC WILMINGTON DEL RUNS A PILOT PROGRAM IN WHICH CORESTATES BANK WORKERS IN PHILADELPHIA USE MAGNETICSTRIPE CARDS FOR SMALLTICKET ITEMS FROM PHONE CALLS TO NEWSPAPERS AND MOVIE TICKETS WE DID THIS TO DEVELOP CONSUMER DATA ON HOW PEOPLE USE THE CARD SAYS MAC'S DONALD J GLEASON CHASE MANHATTAN CORP HAS A VERSION WHICH ALSO PROVIDES BUILDING ACCESS FOR SOME NEW YORK EMPLOYEES AT FLORIDA STATE UNIVERSITY SUCH CARDS RUN LAUNDRY MACHINES AND SERVE AS ID LIBRARY AND DEBIT CARDS TOO FSU ALSO INTRODUCED A 10 PREPAID SPORTS CARD FOR USE AT STADIUM CONCESSION STANDS DURING HOME GAMES MAC IS WORKING ON A PREPAIDCUMDEBIT CARD FOR THE GENERAL MARKET THAT USES A CHIP INSTEAD OF A MAGNETIC STRIPE UTILITY TAKES HEAT STUDENTS AT TUFTS UNIVERSITY URGE TRUSTEES TO DIVEST HOLDINGS IN HYDROQUEBEC STATING THAT THE UTILITY'S DEVELOPMENT PROJECTS DISRUPT CANADA'S NATIVE PEOPLES IN 1992 DARTMOUTH COLLEGE DROPPED HOLDINGS AFTER SIMILAR OBJECTIONS THE UTILITY SAYS IT IS SENSITIVE TO THE NEEDS OF PEOPLE AND NOTES THE PROJECTS MEAN ECONOMIC GAINS FOR INDIGENOUS PEOPLES COLOR IT REVERSED A US DISTRICT COURT OVERTURNED CHICAGO'S ANTIGRAFFITI LAW THAT BANNED THE SALE OF SPRAY PAINT AND LARGE INDELIBLE MARKERS BUSINESS BUILDING MAY BE ON THE UPSWING DUE PARTLY TO RENOVATIONS RELATED TO THE AMERICANS WITH DISABILITIES ACT SAYS THE AMERICAN INSTITUTE OF ARCHITECTS A POLL BY THE ROPER ORGANIZATION FOUND THAT 53 OF THE MIDSIZED FIRMS AND INSTITUTIONS SURVEYED PLAN SOME RENOVATION WORK IN THE NEXT 18 MONTHS 36 PLAN NEW CONSTRUCTION SPRUCING UP DATA IS THE AIM OF TWO NEW PROGRAMS FOR HOUSEWARES MAKERS THE NATIONAL HOUSEWARES MANUFACTURERS ASSOCIATION ROSEMONT ILL BACKS A PLAN FOR POINTOFSALE DATAGATHERING AS WELL AS A PROGRAM FOR MORE ELECTRONIC NETWORKING SUCH AS EMAIL CASHREGISTER DATA LONG HAS BEEN USED AS A MARKETING TOOL FOR FOOD MAKERS DATA FOR THE 51 BILLION HOUSEWARES MARKET EXISTS BUT IT'S IN A BIG BLACK HOLE SAYS RICHARD P MILLER AN ANALYST AT RUBBERMAID WOOSTER OHIO DATA FROM DISCOUNTERS LIKE WALMART ARE OF PRIMARY IMPORTANCE FOR MANUFACTURERS HE ADDS SEYMOUR HOUSEWARES IN INDIANA SAYS THE DATA WOULD PROVIDE THE IRONINGBOARD MAKER WITH CREDIBLE INFORMATION RATHER THAN ESTIMATES WHEN PERSUADING STORES TO CARRY ITS LINE OVER OTHERS SAYS ROBERT BROWNING A MARKETING EXECUTIVE THE MANUFACTURERS' PROGRAMS WILL OFFER MEMBERS DISCOUNTS ON THE DATAGATHERING SERVICE AND EMAIL SYSTEM SED ON THE BUYING POWER OF THE 1863MEMBER GROUP EMAIL TO STORES MAY SUBSTITUTE FOR CATALOGS AS WELL AS FOR SOME SALES CALLS SAYS JOSEPH GANTZ GROUP HEAD BRIEFS THE BOTTOMLESS CLOSET A CHICAGO NONPROFIT PROVIDING CAREER CLOTHES TO WOMEN IN JOBS PROGRAMS PLANS A NEW YORK BRANCH THAT WILL BE AIDED BY A BALLY OF SWITZERLAND FUNDRAISER THE FLOODSTRICKEN HAWKEYE STATE MAILS SUNGLASSES PLUS A PUBLICITY FLIER PROCLAIMING THE BUSINESS OUTLOOK IN IOWA IS BRIGHT 9310140024 931014 THE INTERACTIVE AGE THE ACQUISITION OF TCI PLUGGING IN BELL ATLANTIC AND TCI ARE POISED TO SHAPE NEW INTERACTIVE WORLD BUT PHONE AND CABLE GIANTS ARE FACING OPPOSITION OVER COST TO CONSUMERS HOW SAILING TRIP LED TO DEAL BY WALL STREET JOURNAL STAFF REPORTERS DENNIS KNEALE JOHNNIE L ROBERTS AND LAURA LANDRO NEW YORK BELL ATLANTIC CORP'S AUDACIOUS BID TO ACQUIRE CABLE GIANT TELECOMMUNICATIONS INC AND ITS LIBERTY MEDIA SPINOFF COULD VAULT THE BABY BELL TO THE FOREFRONT OF SHAPING AN INTERACTIVE VIDEO WORLD FOR THE 21ST CENTURY BELL ATLANTIC CHAIRMAN RAYMOND W SMITH AND TCI CHIEF EXECUTIVE OFFICER JOHN C MALONE YESTERDAY OUTLINED A WORLD OF NEWFANGLED FEATURES FOR VIDEOONDEMAND PROGRAM GUIDES THAT LEARN WHAT YOU WANT TO WATCH AND A VAST ARRAY OF CRISSCROSSING SERVICES THAT OFFER PHONE CALLS ON CABLE AND TV FARE ON PHONE LINES THE BELL ATLANTIC BID COULD EMERGE AS THE SINGLE DEFINING DEAL IN THE MAD SCRAMBLE BY JUST ABOUT EVERYONE ELSE OTHER BABY BELLS CABLE OPERATORS INFORMATION COMPANIES MEDIA COMPANIES AND HOLLYWOOD TO REALIGN ALLY AND PARTNER UP THAT WILL MAKE FOR SOMETIMES UNEXPECTED ALLIANCES RAY SMITH 55 YEARS OLD IS AN EXUBERANT BUT LESS THAN WELLKNOWN VETERAN OF THE OLD AMERICAN TELEPHONE & TELEGRAPH CO EMPIRE WHO EMERGED AS THE CHIEF EXECUTIVE OF BELL ATLANTIC SIX YEARS AFTER THE BREAKUP OF AT&T JOHN MALONE THREE YEARS YOUNGER IS REVERED AND FEARED IN THE CABLE BUSINESS AS ONE OF THE MOST POWERFUL AND BRILLIANT EXECUTIVES IN AMERICA A ONETIME SCIENTIST WITH BELL LABS MR MALONE WHO WILL BECOME A BILLIONAIRE STOCKHOLDER IN BELL ATLANTIC AND THE COMPANY'S VICE CHAIRMAN BEGAN ENTERTAINING MR SMITH'S OVERTURES SEVERAL MONTHS AGO THEY CLINCHED ESSENTIAL ASPECTS OF THE DEAL IN AUGUST IN MAINE ON A BOAT MR MALONE PICKED UP HIS PARTNERTOBE AT THE HARBOR IN PORTLAND AND THEY AND THEIR LIEUTENANTS SPENT THE DAY ON MR MALONE'S AGING 67FOOT BERGER YACHT WHEN THEY THOUGHT THE TALKS HAD ENDED THEY TRIED TO RAISE ANCHOR AND DISCOVERED IT WAS STUCK ON A SUBMERGED POWER LINE THEY GAVE UP AND TALKS CONTINUED FOR A WHILE MORE MAYBE THAT'S WHY WE WERE ABLE TO COME TO AGREEMENT MR SMITH WHO IS NO SAILOR SAID IN AN INTERVIEW YESTERDAY IT WAS A NICE PRIVATE WAY TO DO THINGS AS THE COMPANIES PURSUE THEIR MERGER MR MALONE NOTES THE TECHNOLOGY WILL DRASTICALLY REALIGN A LOT OF ENTERTAINMENT AND COMMUNICATIONS BUSINESSES PETER BARTON PRESIDENT OF LIBERTY ADDS THIS SINGLE EVENT HAS DEFINITELY CHANGED THE PH FACTOR IN THE POOL EVERYONE IS GOING TO RUSH TO CONVERGE INDEED EXECUTIVES IN THE KNOW SAY MR MALONE ALREADY HAS APPROACHED SUCH BIG PLAYERS IN HOLLYWOOD AS SONY CORP AND MATSUSHITA ELECTRIC INDUSTRIAL CO TO INQUIRE ABOUT ALIGNING WITH THEIR STUDIOS HE DID SO EVEN AS LIBERTY CONTINUES TO BACK QVC NETWORK INC IN ITS BATTLE TO BUY PARAMOUNT COMMUNICATIONS INC WHICH HAD TENTATIVELY ACCEPTED A MUCH LOWER OFFER FROM VIACOM INC THE TELEPHONE BUSINESS AND THE CABLE BUSINESS ARE COMING CRASHING TOGETHER SAYS GORDON CRAWFORD OF CAPITAL RESEARCH GROUP THE LARGEST INSTITUTIONAL HOLDER IN TCI AND A BIG INVESTOR IN OTHER CABLE AND ENTERTAINMENT COMPANIES EVERY CABLE COMPANY COULD END UP BEING OWNED BY A TELCO' HE ADDS AND THOSE BELLS THAT DON'T ALREADY HAVE ALLIANCES COULD BE COMPLETELY OUT OF THE PICTURE THE PLAYERS IN THE ONSLAUGHT TO BE SURE MAY BE FAR OUT AHEAD OF THE CUSTOMERS THEY HOPE TO REACH CABLE AND PHONE COMPANIES ARE HELLBENT ON CHASING AFTER THE MULTIMEDIA FATE BUT VIEWERS AT HOME REMAIN STUBBORNLY PASSIVE RATHER THAN INTERACTIVE MANY OF THE NEW FEATURES MAY PROVE TOO DIFFICULT TO USE FOR MANY CUSTOMERS AND HOME SHOPPING THE EARLIEST USE AND PROBABLY THE ONE OFFERING THE HIGHEST POTENTIAL STILL ATTRACTS ONLY A MINORITY OF THE PEOPLE WHO WATCH TELEVISION FOR BELL ATLANTIC THE PRICE OF THE STUNNING DEAL WOULD START AT 118 BILLION IN ITS OWN STOCK 220 MILLION SHARES AT A SET PRICE OF 54 A SHARE WHICH WON'T CHANGE FOR THE LION'S SHARE OF TCILIBERTY ASSETS IT COULD EXCEED 16 BILLION IF BELL ATLANTIC IS GRANTED THE COURTREGULATED WAIVERS IT HOPES TO GET TO BE ABLE TO OWN TCILIBERTY'S ARRAY OF OWNERSHIP STAKES IN MYRIAD CABLE CHANNELS IT COULD GO EVEN HIGHER SURPASSING 20 BILLION IF OTHER TCI CABLE SYSTEMS ARE WRAPPED INTO THE DEAL IN ADDITION BELL ATLANTIC WOULD ASSUME ABOUT 96 BILLION IN TCILIBERTY DEBT THE PARTNERS IN THIS MULTIBILLIONDOLLAR COURTSHIP PAINT THEIR PROPOSED MARRIAGE AS A PROCOMPETITIVE COMBINATION THAT COULD LET TCI OFFER TELEPHONE SERVICE IN COMPETITION WITH THE OTHER BABY BELLS AND LET BELL ATLANTIC CHALLENGE HUNDREDS OF CABLE SYSTEMS IN ITS REGION BY OFFERING TV PROGRAMMING OVER ITS PHONE LINES IT WOULD BOOST US COMPETITIVENESS OVERSEAS AND ACCELERATE THE MUCHHYPED ELECTRONIC SUPERHIGHWAY THEY SAY THIS IS ONE AREA OF AMERICAN LEADERSHIP THAT WE ARE NOT GOING TO LOSE VOWS MR SMITH BELL ATLANTIC'S CEO WHO OFFERED MR MALONE A MINORITY INVESTMENT BUT PUSHED HARD FOR AN OUTRIGHT MERGER MANY OBSERVERS HOWEVER INSTEAD SEE THIS MEGADEAL AS DISTINCTLY ANTICOMPETITIVE FOR YEARS CRITICS IN CONGRESS AND ELSEWHERE HAVE ACHED FOR THE DAY WHEN PHONE COMPANIES MIGHT CHALLENGE THE LOCAL CABLE MONOPOLY WHILE OTHERS HAVE LOOKED TO CABLE ENTREPRENEURS TO UNDERCUT THE BELLS' COZY HOLD ON PHONE SERVICE NOW CRITICS CONTEND IT IS AS IF THE TWO BIGGEST GUYS IN THE SCHOOLYARD HAVE TEAMED UP RATHER THAN FIGHT IT OUT DEMOCRATIC SEN HOWARD METZENBAUM OF OHIO AN ARDENT CABLEINDUSTRY CRITIC CALLED FOR AN IMMEDIATE ANTITRUST INVESTIGATION OF THE DEAL LABELING IT A DOUBLEWHAMMY FOR CONSUMERS WHO MIGHT GET HIT WITH HIGHER CHARGES FOR BOTH CABLE AND LOCAL PHONE CALLS HE SET PLANS TO HOLD HEARINGS TO PROBE MEGAMERGERMANIA IN TELECOMMUNICATIONS CERTAINLY THIS WILL LEAD TO GREATER CONCENTRATION LESS COMPETITION AND HIGHER PRICES FOR ALL THESE SERVICES CHARGES BRADLEY STILLMAN OF THE CONSUMER FEDERATION OF AMERICA LAMENTING THE DEAL AS THE TWO BIGGEST MONOPOLIES IN THEIR INDUSTRIES GETTING TOGETHER AND DECIDING THAT THEY CAN'T COMPETE A HIGHLEVEL SENATE STAFFER ADDS INSTEAD OF GOING INTO AGGRESSIVE COMPETITION YOU HAVE THE GIANTS OF THE MARKETPLACE FORMING A CONVENIENT ALLIANCE THIS SIGNALS THE DEATH OF FULL COMPETITION RIVALS HOWEVER ARE EAGER TO FOLLOW SUIT SIMPLY BECAUSE TELECOMMUNICATIONS AND CABLE EXECUTIVES ALIKE HAVE COME TO DOUBT THAT ANY ONE CABLE COMPANY OR TELCO OR EVEN MEDIA COMPANY BRINGS TO BEAR ALL THE CAPABILITIES WE NEED TO CAPITALIZE ON THE PREMIER GROWTH OPPORTUNITY OF THE DECADE AS BELL ATLANTIC'S MR SMITH PUT IT IN AN INTERVIEW YESTERDAY IN SHEER BALANCE SHEET TERMS BELL ATLANTIC AND TCILIBERTY WOULD LOOK AWESOME COMBINED REVENUES IN THE 17 BILLION RANGE AND ANNUAL CASH FLOW OF MORE THAN 6 BILLION AND TOGETHER THEY WOULD REACH ABOUT 40 OF THE NATION'S CABLE HOMES BELL ATLANTIC'S PROMISING STARGAZER TV TECHNOLOGY COULD REACH MOST OF TCI'S 10 MILLION CABLE HOMES AND BELL ATLANTIC WOULD HOPE TO GET HOLD OF PROGRAMMING FROM TCI AND LIBERTY'S ENVIABLE ASSETS THEY OWN STAKES IN A PASSEL OF CABLE CHANNELS INCLUDING CNN TNT THE FAMILY CHANNEL COURT TV REGIONAL SPORTS NETWORKS AND STILL MORE TCI WOULD LEND ITS CABLE EXPERTISE TO BELL ATLANTIC WHICH PROVIDES PHONE SERVICE TO 11 MILLION HOMES IN ITS SIXSTATE REGION CABLE FIRMS' BROADBAND LINES CAN CARRY REAMS OF DIGITAL PICTURES VOICE AND DATA INTO 95 OF THE NATION'S 942 MILLION TV HOMES ALTHOUGH ONLY 62 OF THOSE WIRED FOR CABLE NOW SUBSCRIBE AND THEY KNOW PROGRAMMING PHONE COMPANIES HAVE HUGE NETWORKS OF HIGHSPEED FIBEROPTIC LINES THAT EVEN TODAY CARRY ONLY ONETENTH OF ONE PERCENT OF THEIR FULL CAPACITY AND THEY KNOW NETWORK MANAGEMENT BUT THEIR OLD WIRING INTO HOMES CAN'T CARRY ENOUGH DATA TO GO IT ALONE IN INTERACTIVE VIDEO AND PUTTING IN THEIR OWN BROADBAND LINES LIKE THOSE FOR CABLE TV WOULD COST UP TO 500 PER HOUSEHOLD LINKING TO CABLE COULD PARE THE COST TO A FRACTION OF THAT IT ALSO WOULD LET PHONE COMPANIES GET INTO A BUSINESS THAT GROWS TWICE AS FAST AND OFFERS TWICE THE RETURN ON EQUITY SAYS PAINEWEBBER ANALYST JACK GRUBMAN CABLE CASH FLOW GROWS 15 ANNUALLY AND ITS RETURN IS ABOUT 30 VS 15 FOR PHONE COMPANIES WE LOVE THIS DEAL HE EXULTS OTHER COMBINATIONS HAVE BEGUN NYNEX CORP LAST WEEK AGREED TO INVEST 12 BILLION FOR ABOUT A 12 STAKE IN VIACOM U S WEST EARLIER THIS YEAR PAID 25 BILLION FOR 25 OF TIME WARNER INC'S ENTERTAINMENT ASSETS AND BELLSOUTH CORP IS IN SERIOUS TALKS TO INVEST ABOUT 1 BILLION IN THE QVC BID FOR PARAMOUNT NOTHING HAS COME CLOSE TO THE SCALE OF THE BELL ATLANTIC MOVE WHICH MAY END UP AS THE SECONDLARGEST OR EVEN THE LARGEST DEAL TO DATE IF THE NUMBERS SEEM MAGICAL HOWEVER CLEARING THE REGULATORY HURDLES AND MELDING TWO VERY DIFFERENT CULTURES COULD PROVE EXCEPTIONALLY TRICKY THE PACT TOOK MOST PEOPLE BY SURPRISE BECAUSE VIRTUALLY NO ONE BELIEVED THAT MR MALONE WOULD SELL MANY INDUSTRY EXECUTIVES CONTINUE TO DOUBT THAT HE WILL BE CONTENT TO TAKE A SECONDARY ROLE IN THE COMBINED COMPANIES MR MALONE HIMSELF SEEMS TOUCHY ON THE TOPIC EVEN WHILE INSISTING HE WANTS TO TAKE A BACKSEAT ROLE AS STRATEGIST AND BLUESKY THINKER THIS IS A MERGER NOT A SALE HE DECLARES IN AN INTERVIEW WE'RE ALL BECOMING INVESTORS IN BELL ATLANTIC WE'RE JOINING THESE GUYS NOT SELLING OUT TO THEM BUT MR MALONE WENT TO GREAT LENGTHS YESTERDAY TO TELL THE PUBLIC THAT HIS NEW BOSS MR SMITH WOULD BE FIRMLY IN CONTROL IT REMAINS TO BE SEEN HOW MR SMITH WILL BE ABLE TO OVERSEE HIS NEW PARTNER MR MALONE'S STAKE WILL COME TO ABOUT 4 OF BELL ATLANTIC WHILE MR SMITH OWNS UNDER 1 MR MALONE SAYS OF HIS ROLE I'LL BE A SHAREHOLDER HOPEFULLY A VERY HAPPY SHAREHOLDER I'LL BE A DIRECTOR I THINK I'LL BE VICE CHAIRMAN WHICH IS YOU KNOW KIND OF LIKE BEING VICE PRESIDENT BUT EVEN MR SMITH EXPECTS THE TCI MAN TO BE MORE INVOLVED THAN THAT WHEN MR MALONE PROCLAIMED I'M GOING FISHING MR SMITH SHOT BACK NOT A CHANCE ONE CHIEF EXECUTIVE OF A COMPANY THAT DEALS EXTENSIVELY WITH MR MALONE SAYS THE TCI CHIEF IS FED UP WITH THE ATTACKS ON HIS POWER FROM LAWMAKERS REGULATORS AND OTHERS NOW THE EXECUTIVE SAYS TCI WOULD BE JUST PART OF BELL ATLANTIC BUT IT MAY TAKE YEARS TO MERGE THOSE TWO DIVERGENT IDENTITIES EVEN MR MALONE REFERS TO BELL ATLANTIC'S STUCKINTHEMUD CONSERVATISM AND SPEAKS OF THE NEED TO MAKE IT A MORE OUTSPOKEN MORE ENTREPRENEURIAL ENTERPRISE IN THE NEAR TERM THE FINANCIAL TECHNICAL AND REGULATORY OBSTACLES COULD PROVE TO BE THE MORE DAUNTING CHALLENGE IT ISN'T CLEAR FOR EXAMPLE HOW MANY OF THE STATE AND LOCAL REGULATORS THAT OVERSEE TCI CABLE SYSTEMS WILL WANT TO HOLD FRANCHISE REVIEWS BECAUSE OF THE CHANGE IN OWNERSHIP STATE PUBLICSERVICE COMMISSIONS IN BELL ATLANTIC'S REGION MAY WANT TO WEIGH IN ONE BRIGHT SPOT OFFICIALS AT THE JUSTICE AND COMMERCE DEPARTMENTS SO FAR ARE EXPRESSING LITTLE CONCERN ABOUT THE ANTITRUST POSSIBILITIES OF THE DEAL IT COULD BE TWO YEARS BEFORE BELL ATLANTIC IS ALLOWED TO GET ITS HANDS ON THE PRIZED ASSETS OF TCILIBERTY'S STAKES IN VARIOUS CABLE CHANNELS UNDER THE CONSENT DECREE THAT BROKE UP THE OLD AT&T BABY BELLS AREN'T ALLOWED TO BEAM A SIGNAL ACROSS THE LINES OF SOCALLED LOCAL ACCESS TRANSPORT AREAS CABLE PROGRAMMING FALLS UNDER THAT PROHIBITION BELL ATLANTIC MAY HAVE TO GET DOZENS OF COURT WAIVERS TO LET IT GET INTO TCI'S PROGRAMMING BUSINESS IN ADDITION TCI WILL ALMOST CERTAINLY HAVE TO SELL OFF THE CABLE SYSTEMS IT OWNS IN BELL ATLANTIC'S REGION WASHINGTON DELAWARE MARYLAND PENNSYLVANIA VIRGINIA WEST VIRGINIA AND NEW JERSEY THOSE SYSTEMS COMPRISING 16 MILLION HOMES AND 14 OF TCI'S SUBSCRIBER BASE AREN'T INCLUDED IN BELL ATLANTIC'S INITIAL 118 BILLION PRICE IF TCI SWAPS THOSE SYSTEMS FOR OTHERS ELSEWHERE BELL ATLANTIC WOULD PONY UP MORE STOCK TO BUY THOSE SYSTEMS TOO THAT WOULD ADD 3 BILLION TO 4 BILLION TO THE TOTAL COST EVEN THOUGH BELL ATLANTIC IS USING ALL STOCK AND NO DEBT TO ACQUIRE ITS NEW POSSESSIONS THE FINANCIAL COSTS WILL BE SIGNIFICANT IT MUST ASSUME 98 BILLION IN DEBT OF ITS NEW UNITS AND THE COMPANY EXPECTS THE FIRST 118 BILLION OF THE DEAL TO DILUTE ITS PERSHARE EARNINGS BY ABOUT 35 AND TO DILUTE ITS CASH FLOW BY 15 FOR THE FIRST YEAR AFTER THE DEAL IT COULD TAKE TWO TO FOUR YEARS TO RECOVER THE EARNINGS DILUTION AND AS LONG AS TWO YEARS TO RECOVER THE REDUCTION IN CASH FLOW SAYS BELL ATLANTIC'S CHIEF FINANCIAL OFFICER WILLIAM O ALBERTINI THE ADVERSE EARNINGS IMPACT HOWEVER DIDN'T DAUNT SOME WALL STREET ANALYSTS PAINEWEBBER'S MR GRUBMAN RAISED HIS RATING ON BELL ATLANTIC SHARES TO A BUY FROM A HOLD AS DID ROBERT MORRIS OF GOLDMAN SACHS & CO ALL OF THAT OF COURSE ASSUMES THE DEAL PASSES REGULATORY SCRUTINY SOME RIVALS ARE PUSHING FOR AN UNKIND REVIEW WHILE OTHERS INTERPRET THE TCI DEAL TO THEIR OWN ADVANTAGE SOUTHWESTERN BELL CORP SAYS THE PACT SHOWS HOW COMPETITION IS RISING AND WHY THE BELL COMPANIES SHOULD BE FREED TO COMPETE IN LONGDISTANCE SERVICE MCI COMMUNICATIONS CORP COUNTERS THAT THE DEAL SHOWS THE BELLS ALREADY HAVE GREAT OPPORTUNITIES AND SHOULDN'T BE ALLOWED TO ENTER THE LONGDISTANCE MARKET VIACOM WHOSE STRUGGLE TO COMPLETE THE ROUGHLY 75 BILLION ACQUISITION OF PARAMOUNT SEEMED TO SET OFF THE LATEST EVENTS AND NOW IS DWARFED BY THE BELLTCI PACT PUT OUT A SOLEMN STATEMENT SAYING THE DEAL RAISES MANY NEW AND TROUBLING QUESTIONS ABOUT THE MALONE GROUP'S MARKET DOMINANCE AND MONOPOLISTIC INTENTIONS MR MALONE'S RETORT THEY'RE DOING ANYTHING THEY CAN TO GET THE FOCUS OFF THE FACT THEY HAVE AN INADEQUATE BID FOR PARAMOUNT HE ADDS THAT THE PITCHED PARAMOUNT FIGHT IS VERY PERIPHERAL TO THIS UNDERTAKING BECAUSE HE HAS FAR BIGGER THINGS IN MIND FOR BELL ATLANTIC BY OFFERING FANCY POWERFUL SOFTWARE TO MILLIONS OF HOMES THE MERGER AND OTHERS LIKE IT COULD REARRANGE THE OLDLINE DISTRIBUTION SYSTEMS THAT HAVE LONG HELD SWAY AN INDEPENDENT PRODUCER HE NOTES COULD BYPASS THE HOLLYWOOD STUDIO SYSTEM AND THE MAJOR BROADCAST NETWORKS AND CREATE MOVIES DIRECTLY FOR THE NEW ELECTRONIC HIGHWAY THE IMPLICATIONS FOR VIRTUALLY EVERY SEGMENT OF OUR SOCIETY ARE DRAMATIC MR MALONE SAYS THIS DEAL GIVES A LEG UP TO THE 40 OF US HOMES WIRED FOR CABLE THAT TCI AND BELL ATLANTIC COMBINED WILL REACH SAYS TERENCE GARNETT SENIOR VICE PRESIDENT OF ORACLE CORP WHICH HAS APPROACHED VIRTUALLY ALL THE LEADING PLAYERS ABOUT USING ORACLE DATABASES FOR THE NEW SERVICES THIS SUPERCHARGES THE TIMETABLE ON WHEN ALL THIS STUFF IS GOING TO HAPPEN MR GARNETT SAYS THIS IS THE DAWN OF THE INFORMATION AGE 9310140023 931014 THE INTERACTIVE AGE THE ACQUISITION OF TCI RISING TIDE HIGHER STOCK PRICES ARE FEEDING A REVIVAL OF MERGER ACTIVITY AFTER A FOURYEAR DROUGHT VOLUME HITS 225 BILLION WALL STREET IS IN A FRENZY TELLING STORIES' TO INVESTORS BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL THE MERGER BANDWAGON IS ROLLING AGAIN WITH YESTERDAY'S ANNOUNCEMENT OF A PLANNED ACQUISITION OF TELECOMMUNICATIONS INC BY BELL ATLANTIC CORP TAKEOVER FEVER ON WALL STREET IS SUDDENLY RIVALING THE WAVE OF BUYOUTS IN THE LATE 1980S SPURRED BY HIGH STOCK PRICES AND RAPID CHANGE IN A FEW HEADLINEGRABBING INDUSTRIES THIS YEAR'S MERGER ACTIVITY IS MORE THAN DOUBLE THE PACE IN 1992 NEAR THE BOTTOM OF A THREEYEAR MERGER DROUGHT AND THE VOLUME OF 2269 BILLION IN ANNOUNCED US DEALS SO FAR THIS YEAR IS ONLY 12 LESS THAN THE RECORD SET IN THE LIKE 1988 PERIOD ACCORDING TO SECURITIES DATA CO BUT UNLIKE MANY OF THE BIGGEST BUYOUTS OF THE 1980S WHICH WERE FINANCED WITH TOWERING AMOUNTS OF JUNKBOND DEBT THIS LATEST BOOM IS BEING FUNDED LARGELY WITH STOCK WHOSE VALUE HAS BEEN SWOLLEN BY A THREEYEAR BULL MARKET THAT EQUITY FINANCING SHOULD LEAVE THE CORPORATE ACQUIRERS LESS VULNERABLE TO THE KIND OF FINANCIAL COLLAPSE THAT STRUCK MANY EARLIER BUYOUTS THAT WERE OVERWHELMED BY INTEREST BILLS YET THE AMOUNT OF STOCK BEING ISSUED IS NO LESS TOWERING BELL ATLANTIC'S SHARES FOR EXAMPLE HAD A STOCKMARKET VALUE OF ABOUT 26 BILLION WHEN THE MARKET CLOSED TUESDAY YESTERDAY IT DISCLOSED THAT TO FINANCE THE TCI ACQUISITION IT COULD EVENTUALLY ISSUE MORE THAN 20 BILLION OF STOCK BECAUSE INVESTORS BELIEVE THE MOVE IS A GOOD ONE FOR BELL ATLANTIC ITS SHARE PRICE ROSE YESTERDAY INSTEAD OF DECLINING AS ACQUIRERS' STOCKS OFTEN DO THE SHARES CLOSED YESTERDAY ON THE NEW YORK STOCK EXCHANGE AT 65875 UP 5875 ON THE DAY IN OVERTHECOUNTER TRADING TCI'S SHARES CLOSED AT 31375 UP 3 EDUARDO MESTRE COHEAD OF MERGERS AT SALOMON BROTHERS INC WHICH ADVISED BELL ATLANTIC ON THE DEAL SAYS THAT IN GENERAL THIS IS A VERY KIND STOCKMARKET ENVIRONMENT FOR STORY DEALS' THOSE FOR WHICH INVESTORS MUST BUY THE COMPANY'S STORY ABOUT ITS GROWTH PROSPECTS FREDERIC SEEGAL A SALOMON BANKER AGREES STOCKFORSTOCK DEALS DON'T WORK UNLESS THE MARKET LIKES THEM HE COMMENTS BRIAN FINN COHEAD OF MERGERS AT CS FIRST BOSTON CORP NOTES THAT IT'S A SIGN OF THE TIMES THAT COMPANIES CAN ANNOUNCE DEALS OR BIDS THAT RAISE THEIR SHARES OUTSTANDING AND STILL SEE THEIR STOCK PRICE RISE IF INVESTORS BELIEVE THERE IS A VISION AND A MANAGEMENT ABLE TO ATTAIN IT THE WIDESPREAD USE OF STOCK MORE THAN HALF OF THIS YEAR'S TAKEOVERS HAVE BEEN EQUITYFINANCED RECALLS THE GOGO YEARS OF THE 1960S IN WHICH RICHLY PRICED SHARES AND OTHER SECURITIES SUCH AS CONVERTIBLE DEBT WERE USED INSTEAD OF CASH BY ENTREPRENEURS SUCH AS JAMES LING TO ASSEMBLE WIDELY DIVERSIFIED INDUSTRIAL CONGLOMERATES THAT ERA HIT THE HEIGHT OF ABSURDITY AT THE BULLMARKET PEAK IN THE SPRING OF 1969 WHEN SAUL STEINBERG OWNER OF A SMALL COMPUTERLEASING COMPANY WITH A HIGHFLYING STOCK PLANNED A TAKEOVER BID WITH WARRANTS AND CONVERTIBLEDEBT SECURITIES TIED TO THAT STOCK FOR CHEMICAL BANK NEW YORK TRUST CO THE BID NEVER GOT OFF THE GROUND PARTLY BECAUSE MR STEINBERG'S STOCK SOON PLUMMETED AND THE BANK STIRRED UP CONGRESSIONAL OPPOSITION THE CONGLOMERATE THEORY HELD THAT COMPANIES OPERATING IN MANY DIFFERENT BUSINESSES WOULD BE LESS VULNERABLE TO DOWNTURNS IN INDIVIDUAL SECTORS AND COULD BENEFIT FROM CENTRALIZED MANAGEMENT BUT THE FAD WAS DISCREDITED WHEN CONGLOMERATE STOCKS COLLAPSED ALONG WITH THE REST OF THE MARKET IN THE 1970S INDEED MUCH OF THE TAKEOVER ACTIVITY OF THE 1980S INVOLVED BREAKING UP MULTIINDUSTRY COMPANIES AND SELLING OFF THE PIECES THIS YEAR'S DEALS ARE DIFFERENT FROM THE FINANCIALLY DRIVEN BREAKUP DEALS OF THE 1980S SAYS FELIX ROHATYN A GENERAL PARTNER AT LAZARD FRERES & CO THESE ARE ALL DEALS THAT BASICALLY REFLECT UNDERLYING STRATEGIC DECISIONS NONETHELESS THEY ARE WELCOME INDEED TO WALL STREET'S HIGHLY PAID ARMY OF INVESTMENT BANKERS AND TAKEOVERSTOCK TRADERS WE'RE SWAMPED I CAN BARELY REMEMBER WHAT MY CHILDREN LOOK LIKE SAYS BARRY COHEN COHEAD OF RISK ARBITRAGE AT BEAR STEARNS & CO HE SAYS HIS TRADING AND RESEARCH STAFFS ARE DELUGED WITH CALLS FROM CUSTOMERS ASKING ABOUT TAKEOVER STOCKS THE FIRM IS TRACKING A RECORD 120 PUBLIC TAKEOVER TRANSACTIONS WORLDWIDE ADDS STEPHEN RATTNER ANOTHER LAZARD PARTNER THIS IS LIKE THE 1980S WITHOUT THE DEBT AND THE HOSTILES EACH DEAL SEEMS IMPOSSIBLE TO TOP BUT THEN SOMETHING EVEN MORE ASTONISHING HAPPENS THE MERGER BOOM IS BEING DRIVEN LARGELY BY LOOMING TECHNOLOGICAL AND REGULATORY CHANGE IN TWO HIGHPROFILE INDUSTRIES HEALTH CARE AND COMMUNICATIONS IN HEALTH CARE PRESIDENT CLINTON'S COSTCUTTING DRIVE HAS SPARKED MEGAMERGERS AMONG DRUG COMPANIES AND HOSPITAL CHAINS PHARMACEUTICAL GIANT MERCK & CO IS ACQUIRING A CUTRATE DISTRIBUTOR MEDCO COST CONTAINMENT SERVICES INC FOR 6 BILLION IN STOCK AND COLUMBIA HEALTHCARE CORP IS ACQUIRING HCAHOSPITAL CORP OF AMERICA FOR 55 BILLION IN THE SECOND OF TWO STOCKFINANCED DEALS THAT WILL RAISE COLUMBIA'S ANNUAL REVENUE TO 10 BILLION FROM 1 BILLION IN COMMUNICATIONS SERVICE PROVIDERS SUCH AS TELEPHONE AND CABLETV COMPANIES ARE NOT ONLY TEAMING UP TOGETHER AS THEY DID IN YESTERDAY'S BELL ATLANTICTCI MEGAMERGER BUT THEY ALSO ARE PURSUING CONTENT CREATORS SUCH AS PARAMOUNT COMMUNICATIONS INC THE MOVIE AND PUBLISHING GIANT IS THE PRIZE IN A 95 BILLION BATTLE BETWEEN TWO OTHER CABLE COMPANIES VIACOM INC AND QVC NETWORK INC PARAMOUNT ITSELF IS A REMNANT OF THE CONGLOMERATE ERA ITS MOVIE STUDIO WAS ONE OF SCORES OF BUSINESSES ASSEMBLED BY CHARLES BLUHDORN INTO THE CONGLOMERATE GULF & WESTERN INDUSTRIES ITS CURRENT CHAIRMAN MARTIN DAVIS TOOK OVER AFTER MR BLUHDORN'S DEATH A DECADE AGO AND SOLD OFF MOST OF THE DISPARATE PIECES THIS YEAR'S MERGER FRENZY BEGAN IN EARNEST ONLY TWO MONTHS AGO WHEN AMERICAN TELEPHONE & TELEGRAPH CO ANNOUNCED A 126 BILLION ACQUISITION OF MCCAW CELLULAR COMMUNICATIONS CORP THAT MOVE SPARKED FEAR AMONG AT&T'S FORMER REGIONAL SUBSIDIARIES THE BABY BELLS THAT AT&TMCCAW MIGHT EVENTUALLY EAT THEIR LOCALPHONESERVICE LUNCH WITH THE CURRENT SPATE OF CABLE AND ENTERTAINMENT DEALS THE BABY BELLS AND CABLE COMPANIES HOPE TO STRENGTHEN THEIR HOLD ON ACCESS TO THE HOME SECURE PROGRAMMING AND SHARE THE FINANCING OF A NEW GENERATION OF COMPUTERIZED CABLETV CONVERTERS THAT CAN OFFER A VAST ARRAY OF SERVICES THERE IS A FUNDAMENTAL RESTRUCTURING TAKING PLACE WITHIN THE WHOLE COMMUNICATIONSMEDIA AREA SAYS SAMUEL HAYES A FINANCE PROFESSOR AT HARVARD BUSINESS SCHOOL ONCE SOMEBODY MAKES A MOVE THEN EVERYBODY RUSHES TO COVER THEMSELVES BECAUSE THEY REALIZE THAT THE ALTERNATIVES ARE FEW AND THE STAKES ARE VERY LARGE SUCH HEADLONG RUSHES CAN PROVE DANGEROUS HOWEVER ONLY FIVE YEARS AGO KOHLBERG KRAVIS ROBERTS & CO PAID 25 BILLION FOR RJR NABISCO INC IN A DEBTFINANCED LEVERAGED BUYOUT AT THE PEAK OF A FRENZY TO ACQUIRE CONSUMER BRAND NAMES AT SKYHIGH PREMIUMS NOW KKR'S INVESTORS ARE FACING A LOSS ON THE DEAL BECAUSE RJR'S FOOD AND TOBACCO BUSINESSES HAVE WEAKENED DRAMATICALLY INDEED COMPANIES CAN FALL INTO THE SORT OF HERD MENTALITY THAT AFFLICTS INDIVIDUAL INVESTORS WHO PILE INTO THE STOCK MARKET AT THE TOP SUCH TIMING WAS SHOWN WHEN US STEEL NOW USX CORP AND DUPONT CO ACQUIRED OIL COMPANIES JUST BEFORE OIL PRICES PEAKED IN THE EARLY 1980S AND WHEN EASTMAN KODAK CO BOUGHT STERLING DRUG AFTER THE PHARMACEUTICAL INDUSTRY SHOWED PHENOMENAL GROWTH OTHER AREAS NOTABLE FOR MERGER ACTION THIS YEAR INCLUDE BANKS AND UTILITIES IN THESE TWO SECTORS GREATER COMPETITION AND OVERCAPACITY ARE SPURRING MERGERS OF EQUALS DEALS THAT MIGHT HAVE BEEN UNTHINKABLE FIVE YEARS AGO LAST WEEK KEYCORP ANNOUNCED A 39 BILLION FRIENDLY BANK MERGER WITH SOCIETY CORP AND PSI RESOURCES INC FOUGHT OFF A 17 BILLION HOSTILE BID BY IPALCO ENTERPRISES INC TO PRESERVE A FRIENDLY MERGER WITH CINCINNATI GAS & ELECTRIC CO AT SALOMON WHICH WORKED ON BOTH DEALS MR SEEGAL SAYS THAT IN BOTH OF THEM THE NEED TO RETAIN INVESTMENTGRADE DEBT RATINGS MAKE STOCK THE ONLY ACCEPTABLE CURRENCY USING STOCK FOR ACQUISITIONS HAS ANOTHER ADVANTAGE OVER CASH IT IS USUALLY BETTER FOR A COMPANY'S REPORTED EARNINGS CASH ACQUIRERS MUST DEDUCT THE PREMIUM THEY PAY OVER THE ACQUIRED COMPANY'S BOOK VALUE THE PREMIUM IS KNOWN AS GOODWILL FROM THEIR EARNINGS FOR YEARS TO COME NOT SO FOR STOCK ACQUIRERS SOME ANALYSTS CONSIDER THE FROTHY ATMOSPHERE IN WHICH COMPANIES ARE ISSUING BILLIONS OF DOLLARS OF STOCK BASED ON THEIR VISIONS OF THE FUTURE AS A SIGN OF A DANGEROUSLY OVERHEATED STOCK MARKET MUCH AS THE STEINBERG BID FOR CHEMICAL BANK WAS IN 1969 AFTER ALL CABLETV COMPANIES HAVE SPRUNG UP ONLY IN THE PAST 20 YEARS AND COULD SUDDENLY BECOME VULNERABLE TO SOME NEW WIRELESS TECHNOLOGY SIMILARLY THE BABY BELLS ENJOY A SEEMINGLY COMFORTABLE FRANCHISE COLLECTING 18 BILLION A YEAR IN LOCAL TOLLS FROM CAPTIVE CUSTOMERS BUT THOSE CUSTOMERS MAY NOT REMAIN CAPTIVE INDEFINITELY TIME WARNER INC CREATED FROM THE SAME BOLT OF MULTIMEDIA CLOTH IN 1989 INITIALLY PROVED DISAPPOINTING BASED ON ITS STOCK PRICE SINCE THE DEAL CLOSED BUT IT IS STILL BEING HAILED AS THE MODEL FOR WHAT HAVE BEEN CALLED MEDIA CONGLOMERATES WE'RE STIMOON PHASE OF THESE DEALS THE PROBLEMS WILL SURFACE IN A YEAR OR TWO SAYS HAROLD VOGEL AN ENTERTAINMENT ANALYST AT MERRILL LYNCH & CO WHEN WE TALK ABOUT INTERACTIVE DIGITAL BROADBAND COMMUNICATIONS AND MULTIMEDIA NOBODY KNOWS WHAT THAT QUITE MEANS YET FOR REVENUES AND INCOME HE ADDS THE CHIEF RISK IS THAT NOBODY REALLY KNOWS HOW MUCH THE CONSUMER CAN SPEND ON ALL THIS STUFF THERE MAY BE A SHIFT IN SPENDING BUT THE TOTAL PIE MAY NOT GROW AS FAST AS EVERYBODY WOULD LIKE AT PAINEWEBBER INC EDWARD KERSCHNER THE CHIEF INVESTMENT STRATEGIST ACKNOWLEDGES THERE'S RISK IN EVERY MERGER YET HE AND OTHER WALL STREET EXPERTS CONSIDER THIS YEAR'S CROP OF DEALS GENERALLY SOUND DESPITE THEIR HIGH PRICES BECAUSE COMPANIES ARE PURSUING LOGICAL BUSINESS STRATEGIES WITHIN CLOSELY RELATED FIELDS BUT THERE IS POLITICAL RISK AS WELL MANY OF THE DEALS SUCH AS MERCKMEDCO OR VIACOM'S BID FOR PARAMOUNT INVOLVE VERTICAL INTEGRATION IN WHICH COMPANIES ATTEMPT TO INCREASE THEIR SALES AND PROFITS BY MARRYING PRODUCTION AND DISTRIBUTION BUT THE CLINTON ADMINISTRATION'S NEW JUSTICE DEPARTMENT ANTITRUST CHIEF ANNE BINGAMAN HAS VOWED TO CRACK DOWN ON VERTICAL ORGANIZATIONS THAT SEEM ANTICOMPETITIVE DESPITE THIS WEEK'S CANYOUTOPTHIS ACTIVITY THE GENERAL PACE OF DEALS IN THE 1990S IS FAR MORE SEDATE THAN IN THE 1980S MOST CURRENT DEALS ARE RESULTING FROM FRIENDLY NEGOTIATIONS AND EXCEPT FOR THE PARAMOUNT CASE A NEARABSENCE OF HIGHPROFILE BIDDING WARS MOREOVER BOARDS OF DIRECTORS HAVE REPLACED CORPORATE RAIDERS AS CATALYSTS FOR CHANGE IN THE MOST POORLY RUN COMPANIES FOREIGN COMPANIES LIKE THE JAPANESE BUYERS OF MOVIE STUDIOS HAVE RETREATED BESET BY THE WEAKNESS OF THEIR OWN DOMESTIC ECONOMIES AND ALSO LEFT ON THE SIDELINES IN THE CURRENT ROUND OF MEGADEALS ARE THE LEVERAGEDBUYOUT PLAYERS SUCH AS KKR BECAUSE THEY CAN'T COMPETE BY USING STOCK OF THEIR OWN BUT WITH INVESTORS FLEEING BANK ACCOUNTS YIELDING A PUNY 25 AND PLOWING MONEY INTO STOCK MUTUAL FUNDS IT IS THE MUTUAL FUNDS THAT ARE PROVIDING THE UNDERPINNING FOR TODAY'S DEALS THE CRITICAL PIECE OF CURRENCY IS THE STOCK COMPONENT OF THE ONGOING ENTERPRISE SAYS ROBERT GREENHILL CHIEF EXECUTIVE OFFICER OF SMITH BARNEY SHEARSON INC AND MERGER EXPERT ADVISING VIACOM BOTH VIACOM AND QVC ARE FINANCING THE BULK OF THEIR PARAMOUNT OFFERS WITH STOCK WITH EQUITY FINANCING NOW PLAYING A CRUCIAL ROLE TWO THINGS THAT COULD SLOW DOWN THE MERGER BANDWAGON WOULD BE A PLUNGE IN THE STOCK MARKET OR A RETURN TO THE KIND OF VOLATILITY THAT FRIGHTENED INVESTORS IN THE LATE 1980S THEN AGAIN IF THE MARKET FELL FAR ENOUGH CASH BUYERS MIGHT GET A CHANCE TO REENTER THE GAME 9310140022 931014 COMMODITIES HEATINGOIL PRICES SLIP DESPITE COLD WEATHER AS REPORT INDICATES INVENTORY LEVELS HAVE RISEN BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL HEATINGOIL PRICES SLIPPED DESPITE THE ONSLAUGHT OF COLD WEATHER IN THE NORTHEAST WHERE THE BULK OF THE FUEL IS USED HEATINGOIL OR DISTILLATE PRICES YESTERDAY FELL MORE HEAVILY THAN EITHER CRUDEOIL OR GASOLINE PRICES LARGELY BECAUSE INVENTORY LEVELS FOR THE HOMEHEATING FUEL LAST WEEK ROSE RATHER THAN DECLINED THE AMERICAN PETROLEUM INSTITUTE REPORTED AFTER TRADING TUESDAY THAT HEATING OIL STOCKS INCREASED LAST WEEK BY ONE MILLION BARRELS TO 12838 MILLION BARRELS TRADERS HAD EXPECTED HEATINGOIL INVENTORIES TO DECLINE LARGELY BECAUSE OF PROJECTIONS FOR FRIGID WEATHER TEMPERATURES ARE EXPECTED TO DECLINE TO A LOW OF 40 DEGREES IN THE NORTHEAST AND NEW ENGLAND REGIONS WITH FROST ANTICIPATED IN SOME AREAS AND LACK OF AN INVENTORY DRAWDOWN INDICATED TO TRADERS THAT PRIMARY STOCKS THOSE HELD BY DISTRIBUTORS AND TERMINAL OPERATORS ARE AMPLE TO HANDLE ANY UPTICK IN DEMAND PROMPTED BY THE COLD WEATHER AS A RESULT OF THE INVENTORY INCREASE HEATINGOIL PRICES FOR NOVEMBER DELIVERY DECLINED BY 055 CENT TO 5567 CENTS A GALLON AT THE NEW YORK MERCANTILE EXCHANGE THE PRICE OF GASOLINE FOR DELIVERY DURING THE SAME MONTH SLIPPED BY 005 CENT TO 5258 CENTS WHILE CRUDEOIL PRICES EDGED LOWER BY SEVEN CENTS A BARREL TO 1864 BUT NO QUESTION HEATING OIL WAS A DISAPPOINTMENT SAID NAUMAN BARAKAT VICE PRESIDENT OF ENERGY FUTURES FOR MERRILL LYNCH FUTURES AT THIS TIME OF YEAR HEATINGOIL STOCKS SHOULD BE DECLINING MEANWHILE TRADING ACTIVITY OVERALL IN THE ENERGYFUTURES PITS HAS BEEN LIGHT AS MARKET PARTICIPANTS REMAIN FOCUSED ON WHETHER MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WILL COMPLY WITH THE PRODUCTION AGREEMENT THEY STRUCK SEVERAL WEEKS AGO OFFICIAL FIGURES FOR CRUDEOIL OUTPUT DURING OCTOBER THE FIRST MONTH FOLLOWING THE AGREEMENT AREN'T EXPECTED FOR ANOTHER WEEK OR SO BUT INFORMAL READINGS THUS FAR SUGGEST THAT OPEC MEMBERS ARE CURBING PRODUCTION TO MEET THE NEW CEILING OF 245 MILLION BARRELS DAILY MARKET PARTICIPANTS SAY COPPER COPPER FUTURES CONTINUED TO SHOW RESILIENCE IN THE FACE OF LARGE WORLDWIDE INVENTORIES THE ACTIVE DECEMBER CONTRACT JUMPED 170 CENTS TO 7690 CENTS A POUND ON NEW YORK'S COMMODITY EXCHANGE TRADERS SAID THAT THE RALLY WAS PROPELLED BY SHORT COVERING BY COMMODITY FUNDS OR MANAGED POOLS OF INVESTORS' MONEY SHORT COVERING IS THE PROCESS BY WHICH INVESTORS HOLDING SHORT POSITIONS OR WAGERS THAT PRICES WILL DECLINE BUY BACK FUTURES CONTRACTS TO CLOSE OUT THEIR POSITIONS BERNARD SAVAIKO AN ANALYST WITH PAINEWEBBER SAID THERE HAS BEEN FRESH BUYING OF COPPER FUTURES BY INDUSTRIAL CONSUMERS OF THE METAL THE TRADE IS BUYING HE SAID YESTERDAY'S RISE MORE THAN RECOUPED TUESDAY'S 155CENTAPOUND DECLINE IN THE DECEMBER CONTRACT SOME TRADERS NOW SAY THE BASE METAL COULD BE SET FOR A TECHNICAL BOUNCE TOWARD THE 80 CENTAPOUND LEVEL GRAINS & SOYBEANS PRICES OF CORN FUTURES CONTRACTS ROSE IN THE WAKE OF THE AGRICULTURE DEPARTMENT SLICING ITS MONTHLY CORNHARVEST FORECAST BY NEARLY 4 ON TUESDAY IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR DECEMBER DELIVERY ROSE FIVE CENTS A BUSHEL TO SETTLE AT 24925 A BUSHEL BASED ON OCT 1 FIELD CONDITIONS THE AGRICULTURE DEPARTMENT LOWERED ITS CORNHARVEST FORECAST TO 696 BILLION BUSHELS FROM ITS SEPTEMBER FORECAST OF 723 BILLION BUSHELS PRICES OF WHEAT AND SOYBEAN FUTURES CONTRACTS SETTLED SLIGHTLY LOWER 9310140021 931014 ABREAST OF THE MARKET BUOYED BY ENTERTAINMENT ISSUES INDUSTRIALS MANAGE GAIN OF 1006 BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK BELL ATLANTIC'S PLAN TO ACQUIRE TELECOMMUNICATIONS SET OFF FRANTIC BUYING IN CABLE TELEVISION AND ENTERTAINMENT ISSUES CARRYING STOCKS MOSTLY HIGHER THE DOW JONES INDUSTRIAL AVERAGE GAINED 1006 OR 028 TO 360319 BUOYED IN LARGE PART BY SHARES OF WALT DISNEY CO THAT STOCK ONE OF SCORES TO BE SWEPT UP IN THE MERGER EXCITEMENT JUMPED 4 3/4 OR 12 TO 44 1/2 AS TELECOMMUNICATIONS CLASS A SHARES RALLIED 3 OR 11 TO 31 3/8 ON NASDAQ AND BELL ATLANTIC SURGED 5 7/8 OR 98 TO 65 7/8 ON THE BIG BOARD INVESTORS WENT SHOPPING FOR OTHER ISSUES THEY SPECULATED WOULD BE INVOLVED IN THE NEXT CABLE INDUSTRY DEAL AMONG CABLE STOCKS CABLEVISION SYSTEMS SOARED 9 1/4 TO 63 5/8 ON THE AMERICAN STOCK EXCHANGE COMCAST CLASS A JUMPED 6 3/8 TO 39 5/8 ON NASDAQ AND TIME WARNER GAINED 1 7/8 TO 44 7/8 ON THE NEW YORK STOCK EXCHANGE LIBERTY MEDIA WHICH WILL ALSO BE ACQUIRED BY BELL ATLANTIC JUMPED 2 5/8 TO 29 1/4 LIBERTY WAS SPUN OFF FROM TELECOMMUNICATIONS IN 1989 ON FRIDAY THE ENGLEWOOD COLO CABLE COMPANY SAID IT WOULD REPURCHASE LIBERTY THE HEAVY BUYING IN MEDIARELATED ISSUES POURED FUEL ON THE ALREADY BLAZING NASDAQ MARKET THE NASDAQ COMPOSITE INDEX SURGED 651 OR 084 TO 77897 A THIRD STRAIGHT RECORD NASDAQ NATIONAL MARKET VOLUME SWELLED TO A RECORD 3618 MILLION SHARES OTHER BROADBASED INDEXES INCHED HIGHER THE STANDARD & POOR'S 500STOCK INDEX ROSE 037 OR 008 TO 46149 THE NEW YORK STOCK EXCHANGE COMPOSITE STOCK INDEX ADDED 008 OR 003 TO 25675 AND THE DOW JONES EQUITY MARKET INDEX INCREASED 026 OR 006 TO 43845 VOLUME ROSE TO 290886830 SHARES FROM TUESDAY'S 263939880 THERE WERE 1004 DECLINERS AND 953 ADVANCERS THE DOW JONES INDUSTRIAL AVERAGE CLOSED ABOVE 3600 FOR THE FIRST TIME SINCE SEPT 17 BUT IT REMAINS 13 BELOW ITS AUGUST HIGH THE BIG BOARD COMPOSITE INDEX FOR A SECOND STRAIGHT SESSION THOUGH TOPPED ITS RECORD DURING THE DAY ONLY TO CLOSE BELOW THAT PEAK OTHER INDEXES ENDED ABOUT 04 FROM HIGHS BELL ATLANTIC MEANWHILE AGREED TO PAY ABOUT 118 BILLION IN STOCK AND ASSUME 96 BILLION IN DEBT TO MOST OF THE ASSETS OF ENGLEWOOD COLOBASED TELECOMMUNICATIONS AND LIBERTY MEDIA THE FINAL VALUE OF THE TRANSACTION THOUGH MIGHT APPROACH THAT OF RJR NABISCO'S GIANT 30 BILLION BUYOUT IN 1989 THE LARGEST TAKEOVER DEAL EVER THE EXCITEMENT OF SUCH A DEAL SET OFF ALMOST INDISCRIMINATE BUYING YESTERDAY MORNING ONE ISSUE TRANSCONTINENTAL REALTY INVESTORS A DALLAS REALESTATE INVESTMENT TRUST UNRELATED TO THE MERGER SURGED AS MUCH AS 15 AS INVESTORS CONFUSED THE COMPANY WHOSE STOCK SYMBOL IS TCI WITH TELECOMMUNICATIONS TRANSCONTINENTAL FINISHED DOWN 1/4 TO 15 1/4 SHARES OF THE PLAYERS IN THE EFFORT TO ACQUIRE PARAMOUNT COMMUNICATIONS ALSO WERE LIFTED BY THE TELECOMMUNICATIONS NEWS LIBERTY MEDIA IS A LARGE HOLDER OF QVC NETWORK ONE OF PARAMOUNT'S SUITORS AND INVESTORS SPECULATED BELL ATLANTIC'S FINANCIAL STRENGTH COULD HELP QVC'S CAUSE QVC STOCK ROSE 2 1/2 TO 57 1/2 ON NASDAQ SHARES OF VIACOM WHICH ALSO IS BIDDING FOR PARAMOUNT JUMPED 5 5/8 TO 62 1/4 ON THE AMEX PARAMOUNT'S STOCK WAS UP 5/8 TO 77 3/8 CONSOLIDATION IN THE CABLE INDUSTRY IS EXPECTED TO ACCELERATE THE INDUSTRY'S MOVE TOWARD NEW INTERACTIVE MEDIA TECHNOLOGIES SHARES OF COMPANIES THAT MIGHT SUPPLY EQUIPMENT NEEDED FOR THE UPGRADE SURGED BROADBAND TECHNOLOGIES ROSE 5 3/4 TO 43 GENERAL INSTRUMENT ADDED 2 3/4 TO 58 7/8 AND SCIENTIFICATLANTA INCREASED 1 1/4 TO 37 3/4 SHARES OF THE OTHER BABY BELL COMPANIES THOUGH LOST GROUND NYNEX SLIPPED 1 TO 43 SOUTHWESTERN BELL LOST 1 TO 40 AMERITECH DECLINED 3/4 TO 83 3/4 BELLSOUTH DROPPED 3/4 TO 57 1/4 AND PACIFIC TELESIS SHED 3/8 TO 53 1/4 ELSEWHERE LUKENS INC DROPPED 2 1/2 TO 32 1/8 THE COATESVILLE PA SPECIALTY STEEL MAKER REPORTED LOWERTHANEXPECTED THIRDQUARTER EARNINGS OF 51 CENTS A SHARE IN THE YEARAGO PERIOD THE COMPANY EARNED 62 CENTS A SHARE COMPANY OFFICIALS ADDED TO INVESTORS' JITTERS BY REPEATING EARLIER COMMENTS THAT THEY DIDN'T EXPECT MATERIAL IMPROVEMENTS IN PROFITS FOR AT LEAST 18 MONTHS PHILIP MORRIS JUMPED 2 3/4 TO 51 1/2 ON BIG BOARDLEADING VOLUME OF 89 MILLION SHARES AFTER SANFORD C BERNSTEIN & CO ANALYST GARY BLACK RAISED A RATING ON THE STOCK TO BUY FROM NEUTRAL MR BLACK SAID CIGARETTE MAKERS MIGHT RAISE PRICES ON THEIR DISCOUNT BRANDS THE COMPANIES SLASHED PRICES EARLIER THIS YEAR EDWARD NICOSKI MARKET ANALYST AT PIPER JAFFRAY SAID THE MOVE INTO SHARES OF CONSUMER PRODUCTS COMPANIES SUCH AS TOBACCO ISSUES AND OTHER TRADITIONAL GROWTH AREAS SUCH AS HEALTH CARE SHOWS THAT INVESTORS ARE NERVOUS ABOUT THE MARKET'S PROSPECTS PEOPLE ARE JUST LOOKING FOR THINGS NOW THAT ARE DEPRESSED THAT THEY CAN HIDE IN MR NICOSKI SAID BUT HE ISN'T PREDICTING AN IMMINENT SELLOFF A STEADY FLOW OF MONEY INTO EQUITY MUTUAL FUNDS SHOULD CONTINUE TO PROP UP THE MARKET HE SAID 9310140020 931014 HEARD ON THE STREET THE INTERACTIVE AGE BELL ATLANTIC SHEDS IMAGE OF A MILDMANNERED STOCK BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL BELL ATLANTIC ONCE A STODGY DEPENDABLE STOCK FAVORED BY RETIREES AND CONSERVATIVE INVESTORS IS ABOUT TO UNDERGO A MAJOR TRANSFORMATION NO LONGER JUST A UTILITY STOCK CHURNING OUT HIGH DIVIDENDS BELL ATLANTIC IS VENTURING INTO THE RISKY BUT PROMISING CABLETELEVISION BUSINESS WITH ITS PLANNED ACQUISITION OF TELECOMMUNICATIONS FOR BELL ATLANTIC INVESTORS THE PROPOSED DEAL COULD SIGNAL THAT THEIR PREDICTABLE REGIONALTELEPHONE STOCK IS ABOUT TO BREAK OUT OF ITS OLD PATTERNS AND BECOME A HIGHFLIER FOR A TIME A LOT OF INVESTORS HAVE OWNED BELL ATLANTIC SINCE THE BREAKUP OF AMERICAN TELEPHONE & TELEGRAPH SAYS JEFF MALET PORTFOLIO MANAGER AT PACIFIC CENTURY ADVISERS A BANK AMERICA UNIT NOW THEY ARE GOING TO OWN A STAKE IN HOLLYWOOD AND ALL THAT ENTAILS HE SAYS THE METAMORPHOSIS COULD BRING HIGHER RETURNS FOR BELL ATLANTIC HOLDERS JACK GRUBMAN A PAINEWEBBER ANALYST SAYS BELL ATLANTIC COULD BE A 90 TO 100 STOCK BY THE BEGINNING OF 1995 THAT WOULD BE A 40 TO 50 ANNUALIZED RETURN FOR BELL ATLANTIC INVESTORS HE SAYS BUT THE ACQUISITION COULD PUMP MORE VOLATILITY INTO BELL ATLANTIC'S STOCK WHICH JUMPED 5 7/8 YESTERDAY TO 65 7/8 THERE WILL BE A LOT OF STOCK CHANGING HANDS IN COMING MONTHS SAYS MR MALET AS CONSERVATIVE INVESTORS MOVE OUT AND MORE AGGRESSIVE INVESTORS MOVE IN FOR THOSE WHO HANG ON IT COULD BE A BUMPY RIDE JODY PARKER AN INDIVIDUAL INVESTOR IN CALIFORNIA WHO HAS OWNED THE STOCK SINCE THE AT&T BREAKUP SAYS SHE'S STAYING PUT FOR NOW IT COULD BE MORE VOLATILE SHE AGREES BUT I DON'T MIND THE INDUSTRY THAT BELL ATLANTIC IS GOING INTO MAKES SENSE AND IT GIVES ME A CHANCE TO PARTICIPATE SHE SAYS ALREADY THE CHANGEOVER OF BELL ATLANTIC FROM A UTILITY STOCK TO A SOCALLED GROWTH STOCK HAS BEGUN IN THE MINDS OF WALL STREET ANALYSTS WE'RE GOING TO NEED TO USE A NEW YARDSTICK SAYS MR MALET OBSERVES DENNIS LEIBOWITZ AN ANALYST AT DONALDSON LUFKIN JENRETTE THE MOST STRIKING THING ABOUT THE DEAL IS THAT IT'S FORCING A RADICAL RETHINKING OF THE VALUATION OF ALL THE TELEPHONE COMPANIES INSTEAD OF STEADY PERFORMERS ON PROFITS AND DIVIDENDS HE ADDS THEY MAY START TO BE SEEN AS GROWTH VEHICLES UNTIL NOW ANALYSTS HAVE JUDGED BELL ATLANTIC'S STOCK BY THE RATIO OF ITS PRICE TO PERSHARE EARNINGS JUST AS MOST COMPANIES' STOCKS ARE VALUED UNTIL THE ANNOUNCEMENT BELL ATLANTIC TRADED AT ABOUT 17 TIMES ESTIMATED 1994 EARNINGS ABOUT IN LINE WITH THE NORMALIZED MULTIPLE FOR THE OVERALL MARKET DISREGARDING ANY RESTRUCTURING AND OTHER UNUSUAL CHARGES NOW HOWEVER WITH THE STOCKFORSTOCK DEAL WHICH COULD SURPASS 20 BILLION AND WILL DEPRESS PERSHARE EARNINGS ANALYSTS SAY THAT MEASURE IS NO LONGER USEFUL INDEED ROBERT MORRIS A GOLDMAN SACHS ANALYST ESTIMATES BELL ATLANTIC'S EARNINGS WILL FALL TO 235 A SHARE IN 1994 DOWN FROM HIS ESTIMATE OF 345 A SHARE FOR 1993 ONE REASON ANALYSTS WANT TO TOSS OUT THE P/E RULER IS BECAUSE IT IMPLIES THAT BELL ATLANTIC'S STOCK WOULD BE HEADED FOR A FALL IF IT STAYED IN LINE WITH MARKET MULTIPLES BASED ON MR MORRIS'S ESTIMATE OF 235 A SHARE FOR 1994 AND THE CURRENT EARNINGS MULTIPLE BELL ATLANTIC'S STOCK WOULD PLUMMET TO AROUND 40 WITH A NEW YARDSTICK THE OUTLOOK TURNS A LOT BRIGHTER HOWEVER ANALYSTS SAY THEY ARE NOW JUDGING WHERE THEY THINK BELL ATLANTIC'S STOCK SHOULD TRADE BASED ON A MULTIPLE OF ITS OPERATING CASH FLOW THE BENCHMARK USED TO EVALUATE CABLE COMPANIES AND OTHER COMPANIES WITH SCANTY EARNINGS BUT GROWTH POTENTIAL YOU CAN'T LOOK AT BELL ATLANTIC ON AN EARNINGS MULTIPLE SAYS MR MORRIS NOW WE NEED TO LOOK AT CASH FLOW OPERATING CASH FLOW IS EQUAL TO EARNINGS BEFORE INTEREST TAXES AND DEPRECIATION MR GRUBMAN OF PAINEWEBBER ESTIMATES THAT BELL ATLANTIC AND TELECOMMUNICATIONS WILL GENERATE COMBINED OPERATING CASH FLOW OF 72 BILLION THIS YEAR USING THE CASHFLOW MEASURE MR MORRIS SAYS HE BELIEVES BELL ATLANTIC'S STOCK WILL CONTINUE TO TRADE AT ABOUT 65 OR ABOUT SEVEN TIMES HIS ESTIMATE FOR OPERATING CASH FLOW PRIOR TO THE ACQUISITION ANNOUNCEMENT BELL ATLANTIC TRADED AT ABOUT SIX TIMES ITS OPERATING CASH FLOW WHILE CABLE COMPANIES TRADE AT ABOUT 12 TIMES OPERATING CASH FLOW THE DIFFERENCE BETWEEN THE OLD BELL ATLANTIC AND THE NEW BELL ATLANTIC AFTER THE ACQUISITION SAYS MR MORRIS IS THAT ITS EARNINGS POTENTIAL WILL BE MUCH GREATER EVEN AS ITS PERSHARE EARNINGS DECLINE AS A COMPETITIVE ISSUE BELL ATLANTIC JUST PICKED UP NINE MILLION NEW CUSTOMERS AND POTENTIALLY NINE MILLION NEW TELEPHONE CUSTOMERS HE SAYS SO DOES THIS MEAN INVESTORS SHOULD FORGET ABOUT EARNINGS AND CONSIDER ONLY CASHFLOW MULTIPLES WHEN DECIDING WHETHER TO BUY THE STOCK OF A REGIONAL TELEPHONE COMPANY NOT AT ALL SAYS MR MORRIS IN FACT HE SAYS THE BELL ATLANTIC DEAL WITH TELECOMMUNICATIONS PUTS IT SO FAR AHEAD OF ITS COMPETITORS IN THE INTERACTIVE MEDIA AREA THAT IT WILL BE THE ONLY REGIONAL PHONE COMPANY MAKING THE LEAP TO BECOME A GROWTH COMPANY THIS POTENTIALLY DAMAGES THE VALUE OF ALL THE OTHER PHONE COMPANIES HE SAYS THERE ARE FEW OTHER CABLE COMPANIES OF THIS SIZE NOTES MR MORRIS AND THERE'S ONLY ONE JOHN MALONE CHIEF EXECUTIVE OFFICER OF TELECOMMUNICATIONS THE NEXT GUY IN WILL NEED TO COBBLE TOGETHER A BUNCH OF PROPERTIES PETER LYNCH REMINDS INVESTORS THAT WHEN INVESTING ABROAD IT'S STILL WISE TO BUY WHAT YOU KNOW FOR MOST HE SAYS THAT MEANS SHUNNING COUNTRY FUNDS WHICH ARE LURING MANY SMALL INVESTORS EAGER TO GET A PIECE OF THE RECENT SIZZLE IN FOREIGN MARKETS LOOK IF YOU GO TO KOREA NINE OR 10 TIMES A YEAR YOU KNOW WHAT'S HAPPENING THERE AND YOU BELIEVE IN IT THEN FINE BUY A KOREA FUND MR LYNCH SAYS OTHERWISE YOU'RE JUST SPECULATING IT WAS A RECIPE FOR DISASTER TO BUY A GERMANY FUND BECAUSE THE BERLIN WALL CAME DOWN WHEN I BOUGHT AUTOS I BOUGHT VOLVO SUBARU SAYS MR LYNCH WHO WAS INTERVIEWED WHILE ON A TRIP TO CANADA I'M ALWAYS LOOKING AT EXTENSIONS OF THEMES AND OUTSIDE THE US STOCKS TEND TO BE NOT AS WELLCOVERED AND MORE UNDERVALUED THE KEY TO MAKING MONEY IN THE DOMESTIC MARKET WHICH HE BELIEVES IS FAIRLY PRICED RIGHT NOW IS TO IDENTIFY COMPANIES WITH STRONG EARNINGS GROWTH AHEAD MR LYNCH CONTENDS THE AUTO INDUSTRY HAS TURNED THE CORNER HE SAYS ALONG WITH HOUSINGRELATED INDUSTRIES WHILE MANY METALS AND FORESTPRODUCTS CONCERNS CONTINUE TO POST POOR RESULTS HE LIKES THE LONGTERM OUTLOOK FAVORITE STOCKS INCLUDE WHEELINGPITTSBURGH ONE OF THE FEW STEEL COMPANIES MAKING MONEY FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE HAS A GREAT P/E RATIO AND NASDAQLISTED AU BON PAIN QUALITY FOOD FAST RATHER THAN MEDIOCRE FAST FOOD MR LYNCH ALSO HAS A KIND WORD FOR GOLD STOCKS SAYING HIGHER DEMAND IN CHINA AND A SHORTER LIFESPAN OF NEW MINES ARE SOME OF THE REASONS FOR THE PRECIOUS METAL'S PRICE TO RISE 9310140018 931014 LETTERS TO THE EDITOR AN ASSAULT ON PERSONAL FREEDOM ELIZABETH MCCAUGHEY'S SEPT 30 EDITORIALPAGE PIECE HEALTH PLAN'S DEVILISH DETAILS LEFT ME PROFOUNDLY DISHEARTENED IT WASN'T JUST THAT THE PROPOSED HEALTH PLAN WOULD ARBITRARILY ABROGATE MY RIGHT TO PRACTICE MY PROFESSION AS I CHOOSE NOR DID THE VISIONS OF LONG WAITS FOR SERVICES SHORTAGES OF EVERYTHING AND THE TYRANNY OF AN ARROGANT BUREAUCRACY THAT EXISTED WHEN I PRACTICED MEDICINE IN CANADA SADDEN ME IT WAS THE COMPLETE AND UTTER CONTEMPT THAT THE CLINTONS HAVE FOR THE MOST FUNDAMENTAL PRINCIPLE OF THE AMERICAN POLITICAL SYSTEM THAT OF INALIENABLE INDIVIDUAL RIGHTS OUR BASIC INDIVIDUAL RIGHT IS THE RIGHT TO LIFE IT DERIVES FROM THE FACT THAT AS HUMANS WE UNIQUELY CAN CHOOSE TO LIVE OR NOT IN ORDER TO LIVE WE MUST BE ALLOWED TO USE OUR ONLY TOOL OF SURVIVAL OUR MINDS TO THIS END WE REQUIRE THE FREEDOM TO USE THEM AS WE SEE FIT AND THE ABILITY TO ENJOY WHAT OUR MINDS PRODUCE OUR PROPERTY OUR FOUNDING FATHERS UNDERSTOOD THESE ESSENTIAL FACTS WELL AND EMBRACED THEM IN THE BILL OF RIGHTS THERE ARE ONLY THESE NATURAL RIGHTS ANY OTHER RIGHTS THAT ARE CLAIMED BY MEMBERSHIP IN A GROUP SUCH AS GAYS RIGHTS BLACK RIGHTS WOMEN'S RIGHTS ETC CAN ONLY BE ACHIEVED AT THE EXPENSE OF SOMEONE'S INDIVIDUAL RIGHTS SO TOO MR CLINTON'S INSISTENCE THAT MEDICAL NEED IS AN UNEARNED RIGHT TO THE ABILITIES AND RESOURCES OF OTHERS CONDEMNS THE PRODUCTIVE TO A FORM OF SLAVERY VIOLATING THEIR NATURAL RIGHTS THE CONSEQUENCES OF SYSTEMATIC ABANDONMENT OF INDIVIDUAL RIGHTS FOR THE POLICY OF FORCED SACRIFICE AND REDISTRIBUTION HAVE BEEN DISASTROUS FOR OUR COUNTRY AN EMBITTERED UNDERCLASS MINDBOGGLING DEFICITS RAMPANT CRIME INSTITUTIONALIZED RACISM A FAILING ECONOMY AND A DECLINING STANDARD OF LIVING AS THIS COLLECTIVIST PRESIDENT PREPARES TO SEIZE MORE OF OUR FREEDOM IN THE NAME OF THE COMMON GOOD NOW IS THE TIME TO STEADFASTLY RESIST AND REGAIN WHAT HAS BEEN LOST OF OUR PRECIOUS HERITAGE AFTER READING MS MCCAUGHEY'S ARTICLE I DECIDED TO GET A COPY OF THE HEALTH PLAN I CALLED MY SENATORS AND CONGRESSMAN FIRST I CALLED SEN HARLAN MATHEWS'S LOCAL OFFICE THE SENATOR'S AIDE WAS STUMPED AND HAD RECEIVED NO REQUESTS FOR INFORMATION ON THE HEALTH PLAN NEXT I CALLED SEN JIM SASSER'S WASHINGTON OFFICE AIDES THERE WERE NOT AWARE OF ANYTHING OTHER THAN A 30PAGE SUMMARY OF THE PLAN IS IT POSSIBLE TO SPELL OUT A COMPREHENSIVE PLAN TO OVERHAUL OUR HEALTH CARE INSURANCE AND MALPRACTICE SYSTEM IN ONLY 30 PAGES MAYBE THOSE 30 PAGES ARE THE GOOD NEWS THAT THE ADMINISTRATION IS TOUTING I WAS TOLD THAT THEY WOULD TRY TO LOCATE A MORE DETAILED DESCRIPTION I THEN CALLED SEN MATHEWS'S WASHINGTON OFFICE PROVIDING MORE HELP THAN ANYONE ELSE IN THE FEDERAL GOVERNMENT WITH WHOM I HAD TALKED AN AIDE CALLED ME BACK AFTER TRYING TO LOCATE THE 239PAGE DESCRIPTION SHE LIKE THE OTHER GOVERNMENT EMPLOYEES COULD NOT FIND SUCH A PLAN NEXT I CALLED THE WHITE HOUSE WHICH REFERRED ME TO THE GOVERNMENT PRINTING OFFICE THE PRINTING OFFICE INFORMED ME THAT THE COPY OF THE PLAN IS AVAILABLE AT ANY NONGOVERNMENT BOOK STORE I WENT TO MY LOCAL BOOK STORE AND PURCHASED A COPY I CERTAINLY AM COMFORTED BY THE FACT THAT THE HEALTH PLAN THAT CONGRESS IS DEBATING IS NOT EVEN AVAILABLE FROM THE GOVERNMENT IT MAKES ME THINK THAT THE HEALTH CARE WON'T BE AVAILABLE FROM THEM EITHER THE PROPOSED PLAN CREATES ALLIANCES AND GIVES THEM THE POWER TO PROVIDE THE ONLY AVAILABLE HEALTH CARE CHOICES THE CHOICES MAY BE LIMITED TO TWO OR THREE ALL OF WHICH MAY BE HMOS PRICES WILL BE FIXED BY THE ALLIANCES AND PROVIDERS WILL BE PROHIBITED FROM CHARGING MORE PERSONAL CHOICE WILL BECOME NOTHING MORE THAN A FOND MEMORY DIFFERENCES IN CARE WILL ONLY BE BASED ON DIFFERENCES IN NEEDS PERSONALIZED CARE WILL BECOME A LOST ART AS REIMBURSEMENT LIMITS MAKE CUTRATE CARE THE ONLY FEASIBLE LEGAL WAY FOR PHYSICIANS TO PRACTICE THE EMERGENCE OF A NEW STRAIN OF VIRULENT GOVERNMENT CONTROL IS FRIGHTENING THE GOVERNMENT PROVIDES FOOD STAMPS YET DOES NOT PRETEND THAT PRICES FOR FOOD AT MCDONALDS AND LE BEC FIN SHOULD BE THE SAME THE GOVERNMENT PROVIDES HOUSING FOR THOSE IN NEED BUT DOESN'T REQUIRE THAT WE ALL LIVE IN PROJECTS WE ARE FREE TO CHOOSE YUGOS OR MERCEDES WE CAN BUY CLOTHES AT A THRIFT SHOP OR ON RODEO DRIVE WHY ARE THE CLINTONS INTENT ON REDUCING MEDICAL CARE IN THIS COUNTRY TO THE LOWEST COMMON DENOMINATOR DO WE HAVE TO RUIN THE GREAT ADVANTAGES MOST OF US ENJOY TO LEARN THE LESSON THE HARD WAY WHY IS THE HEALTH CARE IN AMERICA OF THE HIGHEST QUALITY IN THE WORLD A SUBSTANTIAL PART OF THE REASON IS SPECIALIZATION AND SUBSPECIALIZATION IT IS NOT DIFFICULT TO SEE THAT WHEN A PRACTITIONER OF ANY TRADE LIMITS HIS ATTENTION TO ONE NARROW SEGMENT OF HIS FIELD HE GAINS A DEPTH OF KNOWLEDGE AND SKILL BEYOND THAT OF HIS FELLOWS WHO ATTEMPT TO SURVEY THE ENTIRE FIELD CERTAINLY THE MEDICAL GENERALIST SERVES AN INVALUABLE FUNCTION IN DELIVERING ROUTINE AND PREVENTATIVE CARE BUT HE/SHE COULD NOT REASONABLY BE EXPECTED TO MASTER THE DIVERSITY AND DEPTH OF MODERN MEDICINE USING ONLY ECONOMIC MOTIVATION TO LIMIT ACCESS TO SPECIALISTS WILL UNAVOIDABLY LIMIT QUALITY OF MEDICAL CARE IT NEED NOT BE SO I AM PART OF A GROUP OF INDEPENDENT SPECIALISTS WORKING WITH A LOCAL HMO TO DEVELOP GUIDELINES FOR US TO WORK TOGETHER MORE EFFICIENTLY WITHOUT SACRIFICING QUALITY MAINTAINING QUALITY OF CARE SHOULD BE ONE OF THE FOUNDING PRINCIPLES FOR DESIGNING OUR MEDICAL CARE SYSTEM ALONG WITH ACCESS SPECIALIST CARE SHOULD NOT BE AN OPTIONAL ORNAMENT WE SHOULD ALL BE INDEBTED TO MS MCCAUGHEY FOR WADING THROUGH THE 239PAGE HEALTH CARE TOME NOT JUST ONCE BUT TWICE IT RAISES SOME INTERESTING QUESTIONS IF THE TWOTIER SYSTEM IS TO BE ELIMINATED DOES THIS MEAN THE CLINTONS MUST GIVE UP THEIR PRESIDENTIAL SUITE AT BETHESDA GENERAL IF TAKEN ILL MUST THEY NOW SHARE AN OPEN WARD WITH PEOPLE WHO LIVE UNDER THE BRIDGE WILL OUR SEVERAL EXPRESIDENTS AND SITTING MEMBERS OF CONGRESS BE LIKEWISE TREATED OR DOES THIS EDICT APPLY ONLY TO THOSE OF US INCLUDING EVEN BILLIONAIRES SUCH AS ROSS PEROT WHO PAY PRIVATELY IS THERE TO BE A SEPARATE TIER RESERVED FOR THOSE AUGUST PERSONS WHOSE EXPENSES ARE PAID BY TAXPAYER DOLLARS THIS SYSTEM OF COMMUNIZATION APPEARS TO BE PATTERNED AFTER ORWELL'S NOVEL OR THE ACTUAL SOVIET SYSTEM ARE SOME ANIMALS TO BE MORE EQUAL THAN OTHERS THE ISSUES ASSOCIATED WITH MONETARY COST REMAINS UNCLEAR HOWEVER THE REAL COST IS CRYSTAL CLEAR THE PRICE OF THIS ORWELLIAN MONSTROSITY IS LIBERTY THE FREEDOM OF CHOICE RESPONSIBILITY ALWAYS RESTS WITH THE PERSON SUFFERING THE CONSEQUENCES OF ACTIONS THIS IS NOWHERE MORE CLEAR THAN IN THE ISSUE OF HEALTH DEATH OR PERMANENT DISABLEMENT MAY RESULT FROM BAD MEDICAL CARE HOWEVER IT IS WE WHO PAY THAT PRICE NOT SOME REGIONAL ALLIANCE FUNCTIONARY OR WASHINGTON BUREAUCRAT 9310140017 931014 WHO'S NEWS EQUITABLE RESOURCES INC EQUITABLE RESOURCES INC PITTSBURGH JOHN V MILANTONI 61 YEARS OLD WILL RETIRE AS PRESIDENT OF THIS NATURAL GAS AND OIL CONCERN'S EQUITABLE GAS CO UNIT EFFECTIVE NOV 1 HE WILL BE SUCCEEDED BY JOHN W WELCH 42 YEARS OLD WHO CURRENTLY IS EXECUTIVE VICE PRESIDENT OF THE SAME UNIT A COMPANY SPOKESMAN SAID A SUCCESSOR TO MR WELCH HASN'T YET BEEN NAMED 9310140016 931014 CREDIT MARKETS POPULARITY OF VERYLONGTERM CORPORATE BONDS SHOWS DIVERGENT VIEWS ON FUTURE INTEREST RATES BY THOMAS T VOGEL JR AND LESLIE SCISM STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK IN THE DEBATE OVER THE DIRECTION OF LONGTERM US INTEREST RATES IT SEEMS THAT CORPORATE TREASURERS ARE SAYING THE GLASS IS HALF EMPTY WHILE MANY MONEY MANAGERS ARE SAYING IT'S HALF FULL WITH THE YIELD OF THE 30YEAR US TREASURY BOND CHANGING LITTLE FROM TUESDAY AT 591 ABN AMRO BANK NV THE NEW YORK BRANCH OF ABNAMRO HOLDING NV A NETHERLANDS BANK SOLD 150 MILLION OF 100YEAR YANKEE BONDS IN 1992 ABN AMRO HOLDING WAS RANKED AS ONE OF THE WORLD'S 20 LARGEST BANKS IN TERMS OF ASSETS THE ABNAMRO OFFERING WAS THE THIRD CENTURY BOND OFFERING SO FAR THIS YEAR BEFORE THIS YEAR THE LAST TIME ANY COMPANY SOLD A 100YEAR BOND WAS IN 1954 YANKEE BONDS ARE SOLD BY FOREIGN ISSUERS IN THE US AND USUALLY ARE DENOMINATED IN DOLLARS FOREIGN ISSUERS HAVE SOLD A RECORD 4988 BILLION OF NEW BONDS IN THE US SO FAR THIS YEAR COMPARED WITH ABOUT 4109 BILLION ALL OF LAST YEAR ACCORDING TO SECURITIES DATA CO ACCORDING TO THE LEAD UNDERWRITER MORGAN STANLEY & CO THE ABNAMRO OFFER WAS THE FIRST 100YEAR YANKEE BOND WITH CORPORATIONS RUSHING TO SELL VERYLONGDATED DEBT IN THE US IT'S SAFE TO SAY THAT THEIR TREASURERS THINK THAT LONGTERM INTEREST RATES ARE NEARING THEIR LOWS ON WEDNESDAY BOEING CO SOLD 50YEAR BONDS THE SIXTH COMPANY TO ISSUE SUCH BONDS SO FAR THIS YEAR BUT WHEN INVESTORS BUY 100YEAR AND 50YEAR BONDS IT MEANS SOMETHING ELSE INVESTORS ARE BUYING THE BONDS FOR ONE OF TWO REASONS SAID HUGH R LAMLE EXECUTIVE VICE PRESIDENT OF MD SASS INVESTORS SERVICES INC THE FIRST REASON IS THAT YOU THINK INTEREST RATES ARE GOING DOWN THAT'S BECAUSE BUYING A 100YEAR BOND IS A HIGHLY LEVERAGED BET ON RATES CONTINUING TO GO DOWN HE SAID A FINANCIAL INSTITUTION LIKE AN INSURANCE COMPANY ALSO MIGHT BUY THE BONDS TO MATCH VERY LONGTERM ASSETS TO LIABILITIES AND REDUCE PORTFOLIO EXPOSURE TO RISING OR FALLING INTEREST RATES HE ADDED ONE SUCH BUYER WAS SAFECO LIFE INSURANCE CO A UNIT OF SAFECO CORP WHICH PURCHASED 10 MILLION OF ABN AMRO'S BONDS YESTERDAY AND PARTICIPATED IN WALT DISNEY CO'S 100YEAR OFFERING IN JULY AS WELL ACCORDING TO MICHAEL KNEBEL A PORTFOLIO MANAGER THERE THE LIFE INSURANCE COMPANY SELLS A PRODUCT CALLED A SINGLE PREMIUM IMMEDIATE ANNUITY WHICH MAY PAY A SETTLEMENT OVER A PERSON'S LIFETIME THE 100YEAR BOND GIVES THE INSURANCE COMPANY A STEADY STREAM OF PAYMENTS TO MATCH AGAINST THIS TYPE OF LIABILITY MR KNEBEL SAID BECAUSE SAFECO IS PURCHASING THE 100YEAR BONDS PRIMARILY FOR THEIR COUPON PAYMENTS IT IS LESS CONCERNED ABOUT WHETHER THE PRINCIPAL WILL BE RETURNED IN 100 YEARS SAID MR KNEBEL ABN AMRO SOLD THE NONCALLABLE 100YEAR BONDS OFFICIALLY KNOWN AS SUBORDINATED DEPOSIT NOTES WITH A COUPON OF 7125 AT A PRICE OF 99178 TO YIELD 7184 110 PERCENTAGE POINTS MORE THAN THE 7125 COUPON 30YEAR TREASURY BOND THE BONDS WERE RATED DOUBLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP ACCORDING TO MORGAN STANLEY THE ISSUE WAS INCREASED IN SIZE FROM 100 MILLION A SIGN OF STRONG DEMAND MORGAN STANLEY SAID IT SOLD THE BONDS TO ABOUT 20 DIFFERENT INSTITUTIONAL INVESTORS SUCH AS INSURANCE COMPANIES AND FINANCIAL ADVISERS BUT IT DECLINED TO NAME ANY MR LAMLE WASN'T ONE OF THESE BUYERS IT STRIKES ME AS EXTREMELY UNLIKELY THAT THERE WON'T BE PERIODS OF TIME OVER THE NEXT 100 YEARS WHEN RATES ARE SIGNIFICANTLY HIGHER THAN CURRENT RATES HE SAID SO I DON'T FEEL COMPELLED TO RUSH INTO THE MARKET TO SCOOP UP THESE ISSUES THE STRONG CREDIT RATINGS AREN'T ENOUGH TO JUSTIFY BUYING THE BONDS SAID MR LAMLE GO BACK OVER THE LAST 40 YEARS AND LOOK AT HOW MANY COMPANIES GM OR IBM OR RAILROADS OR UTILITIES OR MUNICIPALITIES THAT WERE RATED DOUBLEA OR TRIPLEA AND HAVE RUN INTO PRETTY DIFFICULT TIMES BUT MANY OF THE BUYERS OF SUCH LONGTERM DEBT DON'T PLAN TO HOLD IT UNTIL MATURITY THEY ARE TRYING TO MAKE UP FOR MISSING OUT ON A BOND RALLY THAT CAUGHT THEM BY SURPRISE ACCORDING TO MARGARET D PATEL HEAD OF FIXED INCOME INVESTMENTS AT BOSTON SECURITY COUNSELLORS INC SOME MONEY MANAGERS MAY BE DESPERATE TO BUY SUCH VERYLONGDATED BONDS AS PART OF A RISKY GAME OF CATCHUP BECAUSE THEY DIDN'T COUNT ON LONGTERM RATES PIERCING THE 6 BARRIER THIS YEAR IF THESE MANAGERS ARE LOADED UP ON SHORTTERM OR INTERMEDIATETERM SECURITIES THEY ARE IN THE UNCOMFORTABLE POSITION OF HAVING TO ADMIT THEY MISSED A MONSTER RALLY AND HAVING TO SELL MANY OF THESE SECURITIES IN FAVOR OF LONGERTERM SECURITIES SHE SAID IF YOU'RE A PORTFOLIO MANAGER AND YOUR BOND PORTFOLIO IS TOO SHORT YOU DON'T WANT TO ADMIT YOU'RE A DOPE AND ADMIT DEFEAT BY HAVING TO LIQUIDATE YOUR PORTFOLIO TO BUY LONGERTERM DEBT SAID MS PATEL BUT BY PURCHASING A BIG CHUNK OF YESTERDAY'S OFFERING BY ABN AMRO SHE POINTED OUT THESE FUND MANAGERS CAN JUMP BACK INTO THE GAME OF BETTING ON FURTHER DROPS IN LONGTERM RATES IT HAS BEEN A VERY GOOD YEAR FOR INVESTORS IN LONGTERM DEBT INVESTORS WHO PURCHASED A 100YEAR BOND SOLD BY WALT DISNEY IN JULY HAVE SEEN THE PRICE OF THAT BOND RISE NEARLY NINE POINTS OR NEARLY 90 FOR A BOND WITH 1000 FACE VALUE TO 108 24/32 SO FAR IF A COUPON PAYMENT IS COUNTED THAT MAKES FOR A TOTAL RETURN OF MORE THAN 16 IN LESS THAN THREE MONTHS BUT INVESTORS OUGHT TO BEWARE THE BIG GAINS SO FAR IN SUCH LONGDATED ISSUES CAN EASILY TURN INTO BIG LOSSES IF LONGTERM US INTEREST RATES START TO RISE THAT'S BECAUSE LONGDATED ISSUES ARE MORE VULNERABLE TO RISING RATES THAN SHORTERDATED ISSUES ANOTHER REASON THAT COMPANIES ARE ISSUING VERYLONGTERM BONDS RATHER THAN STOCK WHICH WOULD HAVE MANY OF THE SAME CHARACTERISTICS AS A VERYLONGTERM BOND IS TAX SAVINGS UNLIKE STOCK DIVIDEND PAYMENTS A COMPANY CAN TAKE DEDUCTIONS FOR COUPON PAYMENTS MADE FOR THESE BONDS THE DISADVANTAGE FOR THESE COMPANIES WOULD BE THE INABILITY TO WAIVE COUPON PAYMENTS IN BAD TIMES SOMETHING THEY CAN DO WITH DIVIDEND PAYMENTS ABN AMRO WASN'T THE ONLY ISSUER OF LONGTERM DEBT LOEWS CORP SOLD 400 MILLION OF 30YEAR BONDS AS COMPANIES RUSHED A TOTAL OF MORE THAN 16 BILLION OF NEW BONDS TO THE MARKET IN THE JUNKBOND MARKET MARVEL HOLDINGS INC PRICED ITS 150 MILLION OFFERING AFTER REVIVING THE DEAL TUESDAY THE OFFERING HAD BEEN PULLED LAST FRIDAY BECAUSE THE COMPANY BALKED AT SELLING THE BONDS AT AN EXPECTED YIELD OF 1275 YESTERDAY BEAR STEARNS & CO FINALLY PRICED THE DEAL THE NONCALLABLE ZEROCOUPON NOTES MATURE IN 1998 AND WERE REOFFERED TO INVESTORS AT A PRICE OF 58662 TO YIELD 1225 ACCORDING TO KEVIN MATHEWS A JUNKBOND PORTFOLIO MANAGER AT VAN KAMPEN MERRITT ZEROCOUPON NOTES ARE SOLD A STEEP DISCOUNT TO FACE VALUE AND PAY NO INTEREST MR MATHEWS SAID THAT HE DID NOT PURCHASE ANY OF THE NOTES COMPANY OFFICIALS CONFIRMED THAT THE BONDS HAD BEEN PRICED BUT COULD NOT CONFIRM THE REOFFERING PRICE TO INVESTORS OFFICIALS AT BEAR STEARNS DID NOT RETURN CALLS THE NOTES ARE RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP BEAR STEARNS HAD FIRST MARKETED THE DEAL LAST WEEK TELLING MARVEL ON FRIDAY THAT IT COULD BE DONE WITH A 1275 YIELD BUT MARVEL DECIDED THAT YIELD WAS TOO HIGH AND PULLED THE OFFERING COMPANY OFFICIALS CONFIRM MARVEL HOLDINGS IS OWNED BY MACANDREWS & FORBES HOLDING CO WHOSE CHAIRMAN IS RONALD PERELMAN MEANWHILE THE MARKET FOR CABLE COMPANY BONDS RALLIED IN REACTION TO NEWS THAT BELL ATLANTIC CORP INTENDS TO ACQUIRE TELECOMMUNICATIONS INC AT THE SAME TIME THE PRICES OF BONDS OF MOST OF THE BABY BELLS DROPPED SLIGHTLY THAT'S BECAUSE MOST CABLE COMPANIES ARE POTENTIAL ACQUISITION TARGETS WITH BETTERRATED BABY BELLS BEING THE LIKELY BUYERS ONE TRADER SAID THE PRICE OF TCI'S 7 7/8 COUPON BONDS MATURING IN 2013 ROSE NEARLY 7 1/2 POINTS OR NEARLY 75 FOR A BOND WITH 1000 FACE VALUE TO 10871 AS THE YIELD DROPPED TO 705 FROM 775 ONE TRADER SAID THE COMPANY'S BONDS COULD BENEFIT FROM THE MERGER BECAUSE BELL ATLANTIC HAS A HIGHER CREDIT RATING THAN TCI S&P PLACED TCI'S BONDS ON CREDITWATCH WITH POSITIVE IMPLICATIONS THE PRICES OF LONGTERM US TREASURYS ENDED LITTLE CHANGED BY DAY'S END AS DEALERS AND INVESTORS AWAITED INFLATION DATA THAT SOME THINK FINALLY COULD PUSH PRICES OUT OF THEIR NARROW TRADING RANGES AT THE END OF TRADING YESTERDAY IN NEW YORK THE PRICE OF THE TREASURY'S 30YEAR BOND ROSE 3/32 TO 104 19/32 TO YIELD 591 DOWN FROM 592 ON TUESDAY THE 10YEAR NOTE DROPPED 3/32 TO 103 17/32 TO YIELD 527 UP FROM 526 THE PRODUCER PRICE INDEX IS TO BE RELEASED THIS MORNING AND THE CONSUMER PRICE INDEX IS TO BE RELEASED TOMORROW MORNING BOTH INDEXES ARE IMPORTANT MEASURES OF INFLATION BOND INVESTORS WATCH INFLATION NUMBERS VERY CLOSELY BECAUSE RISING INFLATION CAN REDUCE THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN IF THE INDEXES ARE IN LINE WITH EXPECTATIONS INVESTORS MAY GAIN CONFIDENCE THAT INFLATION IS AT BAY AND MAY BUY MORE BONDS THE AVERAGE OF ESTIMATES OF ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT CALLS FOR A 03 INCREASE IN BOTH THE OVERALL PRODUCER PRICE INDEX AND THE SOCALLED CORE INDEX WHICH REFERS TO PRODUCER PRICES EXCLUDING THE VOLATILE FOOD AND ENERGY COMPONENTS ECONOMISTS ESTIMATE ON AVERAGE THE OVERALL AND CORE CONSUMER PRICE INDEXES WILL RISE 02 MATTHEW ALEXY MARKET STRATEGIST AT CS FIRST BOSTON INC THINKS THAT IF THE REPORTS ARE IN LINE WITH EXPECTATIONS THE 30YEAR BOND YIELD COULD DIP BELOW ITS CURRENT TRADING RANGE OF 59 TO 6 THE REASON WE GOT STUCK IN THIS TRADING RANGE IS THAT PEOPLE ARE THINKING WE'LL SEE AGAIN WHAT HAPPENED LAST YEAR THAT THE ECONOMY WILL PICK UP IN THE THIRD AND FOURTH QUARTER HE SAID REFERRING TO AN UNEXPECTEDLY STRONG AVERAGE GROWTH RATE IN THE LAST HALF OF 1992 OUR ARGUMENT IS THAT THAT'S NOT GOING TO HAPPEN PENNSYLVANIA AND A NUMBER OF OTHER ISSUERS TOOK ADVANTAGE OF THE CONTINUED DECLINE IN US RATES BY SELLING MORE THAN 1 BILLION OF SECURITIES IN THE SECONDARY MARKET MUNIS WERE NARROWLY MIXED AS THE RAPIDFIRE PRICINGS OCCURRED THE LOS ANGELES DEPARTMENT OF WATER AND POWER'S 5 OF 2033 ELECTRIC PLANT REVENUE BONDS CLOSED UNCHANGED AT 94 1/2 TO 94 3/4 YIELDING 532 GENERALLY MUNIS CLOSED 1/8 LOWER TO 1/8 POINT HIGHER SEPARATELY MASSACHUSETTS' GENERAL OBLIGATION BONDS WERE UPGRADED BY TWO RATING AGENCIES STANDARD & POOR'S CORP UPGRADED THE BONDS TO SINGLEAPLUS FROM SINGLEA AFFECTING ABOUT 65 BILLION OF GENERAL OBLIGATION DEBT AND ABOUT 21 BILLION OF RELATED AGENCY AND OTHER COMMONWEALTH DEBT FITCH INVESTORS SERVICE INC RAISED ITS RATING FOR MASSACHUSETTS' BONDS TO SINGLEAPLUS FROM SINGLEA S&P ATTRIBUTED ITS UPGRADE TO CONTINUED IMPROVEMENT IN THE COMMONWEALTH'S BUDGETING AND FINANCIAL MANAGEMENT AND THE RESULTANT POSITIVE EFFECT ON ITS FINANCIAL POSITION AND THE APPARENT STABILIZATION OF THE MASSACHUSETTS ECONOMY FOLLOWING A DEEP REGIONAL RECESSION MORTGAGEBACKED SECURITIES HELD SOFTER LEVELS YESTERDAY IN THE ASSETBACKED SECURITIES MARKET MITSUBISHI MOTORS CREDIT OF AMERICA INC A DIVISION OF TOKYOBASED MITSUBISHI MOTORS CORP ANNOUNCED ITS FIRST OFFERING THE MORTGAGE MARKET NEVER RECOVERED FROM SMALL EARLY LOSSES MORTGAGE BANKERS THE FIRMS THAT SECURITIZE HOME LOANS WERE THE MAIN CULPRITS BEHIND THE EARLY PRICE DROPS AS THEY SOLD SECURITIES INTO THE SECONDARY MARKET AMONG 6 CURRENT COUPONS FOR NOVEMBER DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION SECURITIES WERE OFF 9/32 LATE IN THE SESSION AT 99 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION SECURITIES BOTH WERE OFF 7/32 AT 98 25/32 AND 98 18/32 RESPECTIVELY TRADERS SEEING ALMOST NO BUYING INTEREST FROM INSTITUTIONAL INVESTORS WERE BUSY NONETHELESS DEALING WITH THE BONDS BEING CIRCULATED FOR SALE BY BANKERS SAID ALLEN SIEGAL HEAD OF MORTGAGEBACKED SECURITIES AT CS FIRST BOSTON INC JACQUELINE DOHERTY CONTRIBUTED TO THIS ARTICLE 9310140015 931014 WHO'S NEWS MHI GROUP INC MHI GROUP INC TALLAHASSEE FLA DAVID Y HULSE WAS APPOINTED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT OF CORPORATE DEVELOPMENT OF THIS MARKETER OF FUNERAL AND CEMETERY SERVICES MR HULSE 56 YEARS OLD HAD BEEN RESPONSIBLE FOR IDENTIFYING AND NEGOTIATING ACQUISITIONS AT CLINICORP INC A TAMPA FLA CHIROPRACTIC HEALTHCARE COMPANY 9310140014 931014 WHO'S NEWS DATRON SYSTEMS INC DATRON SYSTEMS INC ESCONDIDO CALIF WILLIAM L STEPHAN WAS APPOINTED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MAKER OF SPECIALIZED COMMUNICATIONS SYSTEMS AND SUBSYSTEMS AND RADIO PRODUCTS MR STEPHAN 47 YEARS OLD PREVIOUSLY WAS VICE PRESIDENT FINANCE AND ADMINISTRATION AND CHIEF FINANCIAL OFFICER OF BIOMAGNETIC TECHNOLOGIES INC HE SUCCEEDS THOMAS V BAKER 51 WHO RESIGNED TO PURSUE OTHER INTERESTS 9310140013 931014 WHO'S NEWS AMERICAN EXPRESS CO AMERICAN EXPRESS CO NEW YORK AMERICAN EXPRESS TRAVEL RELATED SERVICES CO A UNIT OF THIS FINANCIAL AND TRAVEL SERVICES CONCERN NAMED JOHN YATES SENIOR VICE PRESIDENT VENDOR MANAGEMENT SYSTEMS IN THIS NEWLY CREATED POSITION MR YATES 50 YEARS OLD FORMERLY OF GENERAL ELECTRIC CO WILL HAVE OVERALL MANAGEMENT RESPONSIBILITY FOR THE COMPANY'S NEW PURCHASING CARD SYSTEM 9310140011 931014 BUSINESS BRIEF CINCINNATI MICROWAVE INC FIRM TO POST 3RDPERIOD NET REVERSING YEAREARLIER LOSS CINCINNATI MICROWAVE INC SAID IT EXPECTS TO REPORT THIRDQUARTER NET INCOME OF 22 CENTS TO 24 CENTS A SHARE INCLUDING AN EIGHTCENTSASHARE GAIN FOR THE SALE OF STOCK THAT COMPARES WITH A LOSS OF 971000 OR NINE CENTS A SHARE ON REVENUE OF 133 MILLION A YEAR EARLIER THE COMPANY ATTRIBUTED THE EARNINGS TO RISING SALES WHICH INCREASED 30 TO 17 MILLION FROM A YEAR EARLIER PRIMARILY DUE TO STRONG SALES OF ITS NEW INTEGRATED SUPER WIDEBAND RADAR AND LASER DETECTION PRODUCTS CMI SAID IT EXPECTS TO REPORT OPERATING PROFIT OF 15 MILLION TO 17 MILLION OR 14 CENTS TO 16 CENTS A SHARE FOR THE QUARTER ENDED SEPT 26 ON JULY 22 THE COMPANY SOLD ITS REMAINING INTEREST IN BI INC RECORDING A NONOPERATING GAIN OF 892000 OR EIGHT CENTS A SHARE 9310140010 931014 BUSINESS BRIEF KERRMCGEE CORP DECLINE OF 33 IS ESTIMATED FOR 3RDQUARTER NET INCOME KERRMCGEE CORP OKLAHOMA CITY SAID IT ESTIMATES THIRDQUARTER NET INCOME FELL ABOUT 33 FROM A YEAR AGO TO 35 CENTS TO 40 CENTS A SHARE FOR THE YEAREARLIER QUARTER THE COMPANY REPORTED NET OF 29 MILLION OR 60 CENTS A SHARE AFTER BEING RESTATED TO REFLECT CERTAIN ACCOUNTING CHANGES REVENUE WAS 8575 MILLION AT AN ANALYSTS' MEETING IN BOSTON COMPANY OFFICIALS SAID THE LOWER EARNINGS RESULT FROM REDUCED GAINS ON CURRENCY EXCHANGES AMONG OTHER THINGS KERRMCGEE SAID IT PLANS TO RELEASE EARNINGS LATE THIS MONTH 9310140009 931014 WOOLWORTH TO SHUTTER 10 OF ITS STORES RETAILER PLANS TO ELIMINATE 13000 JOBS AND TAKE A 480 MILLION CHARGE BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WOOLWORTH CORP UNABLE TO TURN AROUND MANY OF THE MONEYLOSING GENERAL MERCHANDISE STORES FOR WHICH IT IS BEST KNOWN SAID IT WOULD CLOSE 970 STORES IN THE US AND CANADA ELIMINATE 13000 JOBS AND TAKE A 480 MILLION CHARGE IN ITS FISCAL THIRD QUARTER THE CUTS REPRESENT ABOUT 10 OF THE COMPANY'S STORES WORLDWIDE AND 9 OF ITS WORK FORCE THEY ALSO MARK WOOLWORTH'S SECOND MAJOR CUTBACK IN THE PAST TWO YEARS THOUGH ABOUT 425 WOOLWORTH VARIETY STORES WILL BE LEFT STANDING IN THE US MAINLY IN BIGCITY DOWNTOWN AREAS THE CLOSINGS WILL SHUTTER 400 WOOLWORTH GENERALMERCHANDISE STORES IN THE US WHOSE NAMEPLATES WILL NO LONGER MARK THE MAIN STREETS OF MANY SMALL TO MIDSIZE TOWNS ABOUT 330 KINNEY AND FOOTQUARTERS SHOE STORES IN THE US ARE TO BE CLOSED AS WELL HOWEVER UP TO 250 STORES WILL BE REOPENED IN SPECIALTYSTORE FORMATS THE CLOSINGS SCHEDULED OVER THE NEXT SEVERAL MONTHS ARE YET ANOTHER REMINDER OF HOW CHANGING TASTES AND SHOPPING PATTERNS HAVE REVERSED THE FORTUNES OF A RETAILER WHOSE HISTORY EXTENDS TO 1879 WHEN FOUNDER FRANK WOOLWORTH OPENED HIS FIRST SUCCESSFUL STORE CALLED THE GREAT FIVE CENT STORE BUT AS GIANT DISCOUNTERS SUCH AS KMART CORP AND WALMART STORES INC GREW THEY CUT DEEPLY INTO WOOLWORTH'S CORE GENERALMERCHANDISE BUSINESS THE CUTS ACCELERATE THE COMPANY'S PLAN TO TRANSFORM ITSELF FROM A TRADITIONAL GENERAL MERCHANT INTO A SPECIALTY RETAILER WITH VARIED FORMATS INCLUDING FOOT LOCKER ATHLETIC SHOE STORES CHAMPS SPORTS SPORTING GOODS STORES THE AFTERTHOUGHTS COSTUME JEWELRY CHAIN AND NORTHERN REFLECTIONS A RETAILER OF WOMEN'S SPORTSWEAR THE LATEST WOOLWORTH CLOSINGS COME ON TOP OF AN EXTENSIVE DOWNSIZING CARRIED OUT LAST YEAR WHEN THE COMPANY ANNOUNCED IT WOULD CLOSE SELL OR CHANGE THE FORMAT OF 900 STORES FOR WHICH IT TOOK A 250 MILLION SPECIAL CHARGE AGAINST FISCAL 1992 EARNINGS WILLIAM K LAVIN CHAIRMAN OF WOOLWORTH BLAMED THE ACCELERATED CLOSINGS ON CONTINUED UNFAVORABLE ECONOMIC CONDITIONS INCREASED COMPETITIVE PRESSURES AND GENERALLY DEPRESSED CONSUMER SPENDING MR LAVIN ALSO NOTED LACKLUSTER BACKTOSCHOOL SALES AND MOUNTING LOSSES AT THE STORES TO BE CLOSED THE CHARGE WHICH IS EQUAL TO 366 A SHARE IS EXPECTED TO RESULT IN A LOSS FOR THE PERIOD ENDING OCT 31 BEFORE YESTERDAY'S ANNOUNCEMENT ANALYSTS HAD BEEN FORECASTING THIRDQUARTER EARNINGS IN THE RANGE OF 38 CENTS TO 40 CENTS A SHARE COMPARED WITH NET INCOME OF 65 MILLION OR 50 CENTS A SHARE FOR THE FISCAL 1992 THIRD QUARTER WALL STREET GAVE ITS BLESSING TO THE CUTS PUSHING WOOLWORTH'S SHARES UP 25 CENTS TO 26125 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING EDWARD JOHNSON DIRECTOR OF JOHNSON REDBOOK SERVICE SAID THE CLOSINGS RAISE QUESTIONS ABOUT WHETHER WOOLWORTH WOULD CLOSE ANY OF ITS SUCCESSFUL FOOT LOCKER STORES NOW THAT ATHLETIC SHOE SALES HAVE FLATTENED IN ITS ANNOUNCEMENT THE COMPANY MADE NO MENTION OF ANY PLANS TO CLOSE ANY FOOT LOCKER STORES WOOLWORTH SAID THE STORES TO BE CLOSED HAD OPERATING LOSSES OF 36 MILLION DURING THE FIRST HALF OF FISCAL 1993 AN AMOUNT EQUAL TO THOSE STORES' LOSSES FOR ALL OF 1992 THEY JUST HUNG ON TOO LONG TO MANY OF THOSE MAIN STREET LOCATIONS JUST OUT OF AFFECTION FOR THE NAMEPLATE SAID ISAAC LAGNADO OF TACTICAL RETAIL SOLUTIONS INC A CONSULTING FIRM THE VARIETYSTORE CONCEPT HAS BEEN DEVASTATED BY LACK OF TRAFFIC AND THE IMPACT OF TOYS R US BED BATH & BEYOND KMART AND OTHERS WOOLWORTH SAID IT WANTS TO CONCENTRATE ON ITS MOST PROFITABLE RETAIL FORMATS WE ARE PUTTING OUR LOSSES BEHIND US AND MOVING ON TO THE FUTURE OF THE COMPANY MR LAVIN SAID IN AN INTERVIEW HE SAID THE REMAINING WOOLWORTH VARIETY STORES IN DOWNTOWN AREAS ARE HIGHLY PROFITABLE WHILE THE CLOSINGS ARE SWEEPING WOOLWORTH SAID IT WILL CONVERT AS MANY AS 250 OF THE STORES SCHEDULED TO CLOSE INTO OTHER MOREPROFITABLE FORMATS SUCH AS WORLD FOOT LOCKER ATHLETIC FOOTWEAR AND APPAREL STORES AND RX PLACE DESCRIBED AS DEEPDISCOUNT DRUG STORES OR NORTHERN REFLECTIONS WOMEN'S CASUAL APPAREL STORES ABOUT 100 WOOLWORTH STORES IN CANADA WILL BE CONVERTED TO THE BARGAIN SHOP CONCEPT WHICH WOOLWORTH DESCRIBED AS A LOWPRICE STORE SPECIALIZING IN APPAREL AND HOUSEHOLD MERCHANDISE THE CLOSINGS AND JOB CUTS LED STANDARD & POOR'S CORP TO DOWNGRADE ITS RATINGS ON WOOLWORTH DEBT THE AMOUNT OF RATED DEBT OUTSTANDING IS 400 MILLION 9310140008 931014 FOREIGN EXCHANGE MARK CLIMBS DRIVING DOWN FRANCS OF FRANCE BELGIUM DOLLAR IS UNSCATHED BY TIMOTHY MAPES AND BENJAMIN DOLVEN SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE MIGHTY MARK FLEXED ITS MUSCLES IN EUROPE YESTERDAY KNOCKING THE FRENCH AND BELGIAN FRANCS SHARPLY LOWER AND PROMPTING INTERVENTION BY THE FEDERAL RESERVE AND BELGIUM'S CENTRAL BANK AIMED AT STABILIZING THE BELGIAN UNIT BUT THE DOLLAR STAYED OUT OF THE FRAY AND MANAGED TO EKE OUT SOME GAINS AGAINST THE GERMAN CURRENCY AND AGAINST STERLING WHICH WAS HIT BY A DISAPPOINTING REPORT ON THE STATE OF THE BRITISH ECONOMY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16015 MARKS UP FROM 15944 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10595 YEN DOWN FROM 106 YEN STERLING WAS TRADING AT 15230 DOWN FROM 15325 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10615 YEN AND AT 16020 MARKS HELPING TO DRIVE THE MARK HIGHER TRADERS SAID WAS A DECISION BY THE BUNDESBANK TO ALLOCATE THE BULK OF ITS 14DAY SECURITIES REPURCHASE AGREEMENTS AT 670 DISAPPOINTING MARKET HOPES FOR A GRADUAL EASING IN THE HIGH GERMAN INTEREST RATES THAT HAVE MADE THE MARK HIGHLY ATTRACTIVE TO INVESTORS AND THAT MOVE ADDED TO RUMORS CIRCULATING THROUGH THE MARKET TRADERS NOTED HELPING TO SAP THE STRENGTH OF BOTH THE FRENCH AND BELGIAN UNITS AGAINST THE MARK DRIVING THE FRENCH FRANC LOWER THEY SAID WAS TALK THAT THE BANK OF FRANCE MAY FINALLY EASE ITS INTEREST RATES AT A MONEYMARKET OPERATION THURSDAY AND ALTHOUGH THOSE RUMORS WERE LATER SHARPLY DENIED BY THE FRENCH ECONOMICS MINISTRY THE FRANC FAILED TO REGAIN ANY OF THE GROUND IT HAD LOST AND TRADERS EXPECT IT TO GO EVEN LOWER IN COMING SESSIONS THE FRANC IS FINALLY GETTING PUMMELED IT LOOKS DANGEROUSLY WEAK NOTED TOM HOGE CORPORATE TRADER AT CREDIT SUISSE IN NEW YORK TRADERS ADDED THAT REGARDLESS OF YESTERDAY'S RUMORS THE MARKET'S SELLOFF OF THE FRANC WAS SOMETHING OF A VOTE OF NOCONFIDENCE OF THE BANK OF FRANCE'S POLICY OF KEEPING INTEREST RATES HIGH TO SUPPORT THE FRANC AGAINST THE MARK THE MARKET GENERALLY FEELS THAT FRENCH INTEREST RATES REMAIN AT DANGEROUSLY HIGH LEVELS FOR THE HEALTH OF THE ECONOMY THERE IS A REALIZATION THAT IT IS FOOLHARDY TO TRY TO MAINTAIN THE ERM PARITIES MR HOGE SAID REFERRING TO THE BANDS IN WHICH CURRENCIES IN THE EUROPEAN EXCHANGE RATE MECHANISM ERM ARE PERMITTED TO MOVE THEY NEED LOWER RATES IN A BIG WAY THE MARK TRADED LATE IN NEW YORK AT 35304 FRANCS UP FROM 35134 FRANCS LATE TUESDAY MEANWHILE THE MARK ALSO CLIMBED SHARPLY AGAINST THE BELGIAN FRANC DESPITE REPEATED INTERVENTION BY THE BELGIAN CENTRAL BANK IN EUROPEAN TRADING AND BY THE FEDERAL RESERVE LATER IN NEW YORK TRADERS SAID THE FED MOVE TO SUPPORT A EUROPEAN CURRENCY AGAINST THE MARK WAS UNUSUAL THOUGH THE FED WAS LIKELY ACTING ON BEHALF OF THE BELGIAN CENTRAL BANK A SPOKESPERSON FOR THE FED DECLINED TO COMMENT TRADERS SAID THAT THE BELGIAN FRANC'S SLUMP WAS ALSO SET OFF BY RUMORS THIS TIME OF LARGE SALES BY SOME SPECULATIVE PLAYERS AND THEY ADDED THAT THE CENTRAL BANK INTERVENTION HEIGHTENED THE SPECULATIVE SELLING OF THE CURRENCY AS PLAYERS BET THAT THE CENTRAL BANKS WOULDN'T BE ABLE TO SUPPORT THE CURRENCY FOR LONG THE CENTRAL BANK INTERVENTION JUST SPARKS MORE SELLING OF THE CURRENCY SAID DAVID DURST ASSISTANT VICE PRESIDENT AT CREDIT LYONNAIS IN NEW YORK IT'S LIKE THROWING CHUM IN SHARKINFESTED WATERS HE ADDED THE MARK TRADED LATE IN NEW YORK AT 21929 BELGIAN FRANCS UP FROM 21791 FRANCS TUESDAY WITH THE MARKET FOCUSED ON EVENTS IN EUROPE THE DOLLAR TRADED IN A NARROW RANGE GAINING SLIGHTLY AGAINST THE MARK BUT BARELY MOVING AGAINST THE YEN THE DOLLAR IS ON THE BACKBURNER TODAY MR DURST SAID 9310140007 931014 WORLD MARKETS TOKYO PRICES DECLINE IN A LACKLUSTER SESSION FEARS ABOUT ECONOMY DEPRESS LONDON STOCKS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCK PRICES FELL BROADLY WEDNESDAY WHEN FRESH BUYING INCENTIVES DIDN'T EMERGE AND INVESTORS CONCENTRATED ON CORPORATE EARNINGS OUTLOOKS IN LONDON FEARS ABOUT THE BRITISH ECONOMY SENT SHARES LOWER THOUGH THEY REBOUNDED FROM THEIR WORST LEVELS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11313 DOWN 029 REFLECTING LOWER EUROPEAN AND ASIA/PACIFIC MARKETS AND HIGHER AMERICAN MARKETS OTHER RECREATIONAL PRODUCTS AND SERVICES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11982 UP 527 OR 46 WITH WALT DISNEY OF THE US POSTING A 12 GAIN IN ITS LOCAL CURRENCY POLLUTION STOCKS TRAILED AT 7329 DOWN 322 OR 42 WITH WMX TECHNOLOGIES OF THE US SLIDING 58 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH TUMBLED 24133 POINTS TUESDAY DROPPED 9891 TO 2003840 ON THURSDAY IN TOKYO THE NIKKEI INDEX FELL 9361 POINTS TO CLOSE THE MORNING SESSION AT 1994479 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 230 MILLION SHARES COMPARED WITH 2254 MILLION SHARES A DAY EARLIER LOSERS OUTNUMBERED GAINERS 639349 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES LOST 673 POINTS TO 164553 PRESSURED BY CONTINUED SELLING TIED TO INVESTORS' UNLOADING OF SHARES IN THE 225STOCK GAUGE THAT WON'T BE INCLUDED IN THE NEW NIKKEI 300SHARE INDEX THE NIKKEI 225 DROPPED TO AN INTRADAY LOW OF 1999790 BELOW THE PERCEIVED SUPPORT LEVEL OF 20000 FOR THE FIRST TIME IN TWO WEEKS BUT IT QUICKLY RECOVERED REFLECTING EFFORTS TO SUPPORT THE INDEX TO LAY THE GROUNDWORK FOR THE OCT 26 LISTING OF SHARES OF EAST JAPAN RAILWAY KNOWN AS JR EAST IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 138 POINTS TO 30809 REBOUNDING FROM A LOSS OF 235 POINTS THE FT 30STOCK INDEX GAVE UP 176 POINTS TO 23332 VOLUME WAS 6592 MILLION SHARES COMPARED WITH 5368 MILLION SHARES A DAY EARLIER THE SELLOFF WAS TRIGGERED BY ECONOMIC DATA SIGNALLING SLOWING GROWTH WHICH INCREASED MARKET FEARS OF INFLATION CREEPING HIGHER WHILE THE MANUFACTURING INDUSTRY IS FALTERING BUT SOME STRATEGISTS SAID THE ANXIETY WAS OVERBLOWN SAYING INFLATION IS STILL RUNNING AT A LOW RATE AND BRITAIN IS PRODUCING GROWTH IN CORPORATE EARNINGS AND THE ECONOMY NONETHELESS EDGY INVESTORS FLED TO SOCALLED SAFE SECTORS SUCH AS UTILITIES AND THE MAJOR BENEFACTORS WERE ELECTRICITY WATER AND MOST TELECOMMUNICATION STOCKS IN FRANKFURT SHARES ENDED SLIGHTLY HIGHER AFTER AN EARLY RALLY FIZZLED THE DAX 30STOCK INDEX ROSE 290 POINTS TO 200151 WHICH ALSO WAS THE INTRADAY LOW ADVANCING ISSUES LED DECLINING ISSUES 1612 PRICES WERE INFLUENCED BY OPTIONS TRADING IN PARIS STOCKS ENDED MARGINALLYHIGHER AFTER PULLING BACK FROM A RALLY ON SPECULATION THAT FRANCE'S CENTRAL BANK MAY EASE INTEREST RATES TODAY PROFITTAKING KNOCKED AWAY THE GAINS AMID NERVOUSNESS ABOUT WHETHER RATES WILL BE CUT WITH THE FRENCH FRANC UNDER ATTACK IN CURRENCY MARKETS IN MILAN PRICES FELL HURT BY A COMING STOCKRIGHTS ISSUE TODAY'S END OF THE TRADING MONTH AND MAJOR ITALIAN UNIONS' PLANNED GENERAL STRIKE LATER THIS MONTH DESIGNED TO PROD THE GOVERNMENT ON UNEMPLOYMENT PROBLEMS IN STOCKHOLM SHARES SET A NEW ALLTIME HIGH PASSING THE MARK REACHED AUG 16 1989 ONCE AGAIN PUSHED UP IN HEAVY VOLUME BY STRENGTH IN THE DRUG AND TELECOMMUNICATIONS SECTORS IN ZURICH STOCKS GAINED IN ACTIVE DEALINGS BOOSTED BY ROBUST INTEREST IN BANKS AND SOME PHARMACEUTICAL ISSUES IN HONG KONG STOCKS CATAPULTED ONCE AGAIN TO A RECORD FINISH BUOYED BY OVERSEAS BUYING THE MAIN INDEX TANKED IN EARLY TRADING PROVIDING A BUYING OPPORTUNITY FOR FOREIGN FUNDS AND LOCAL INVESTORS THAT LIFTED THE MARKET WHICH HAS CLIMBED 11 IN THE PAST 11 SESSIONS AND IS UP 50 FOR THIS YEAR IN SINGAPORE SHARES ALSO CLIMBED BACK IN LATE BUYING TO CLOSE AT THEIR THIRD CONSECUTIVE RECORD HIGH PARTLY BECAUSE OF FRESH FOREIGN BUYING IN SYDNEY SHARES RESUMED THEIR ADVANCE TO END HIGHER THOUGH THE OVERALL RISE WAS SUBDUED CONSIDERING A STRONG INCREASE IN THE PRICE OF GOLD IN TAIPEI PRICES CONTINUED TO SURGE IN BRISK TRADING HITTING THE HIGHEST LEVEL SINCE AUG 23 ON CONTINUING EXPECTATIONS FOR TAIWAN PARLIAMENTARY CUTS IN THE SECURITIES TRANSACTION TAX IN MANILA EQUITIES ADVANCED FOR THE THIRD STRAIGHT DAY INTO RECORD TERRITORY IN FRENZIED TRADING AGAIN LED BY THE PHONE SECTOR AND IN SEOUL STOCKS ROSE SHARPLY ON EXPECTATIONS OF ECONOMYBOOSTING MEASURES AMONG CORPORATE DEVELOPMENTS IN TOKYO TOKYO ELECTRIC POWER DROPPED 20 YEN TO 3510 YEN 3313 THE UTILITY CITING LOWER ELECTRICITY CHARGES STARTING NEXT MONTH WILL REDUCE BY 18 BILLION YEN 1699 MILLION ITS SPENDING ON REPAIRS IN THE SECOND HALF ENDING MARCH 31 IN THE FISCAL YEAR IT HAD PLANNED TO SPEND 630 BILLION YEN ON MAINTENANCE DAIWA SECURITIES FINISHED UNCHANGED AT 1380 THE SECURITIES FIRM IN THE LATE AFTERNOON INCREASED ITS FORECAST OF PRETAX PROFIT FOR THE FIRST HALF ENDING SEPT 30 TO 353 BILLION YEN IT PREVIOUSLY PREDICTED 30 BILLION YEN DAIWA CITED BETTERTHANEXPECTED RESULTS IN COMMISSION INCOME PROFITS ON SALES FOR ITS OWN ACCOUNT AND FINANCIAL REVENUE AND COSTCUTTING IN LONDON GRAND METROPOLITAN DECLINED 7 PENCE OR 17 TO 396 PENCE 607 THE BEVERAGE COMPANY'S STOCK WAS DOWNGRADED TO HOLD FROM BUY BY NATWEST MARKETS AFTER GRAND MET ON TUESDAY LOST THE US DISTRIBUTION RIGHTS TO ABSOLUT VODKA EFFECTIVE IN SEPTEMBER 1994 GRAND MET HAD HELD THE RIGHTS SINCE 1980 AND THE BUSINESS ACCOUNTED FOR AN ESTIMATED 35 MILLION 566 MILLION OF THE COMPANY'S ANNUAL EARNINGS WHICH ARE EXPECTED TO EXCEED 1 BILLION THIS YEAR IN FRANKFURT MANNESMANN FELL 220 MARKS TO 325 MARKS 20391 THE INDUSTRIAL COMPANY WITHOUT GIVING PRECISE FIGURES SAID THAT ALTHOUGH GROUP SALES GREW 1 IN THE FIRST NINE MONTHS IT HAD A THIRDQUARTER DEFICIT MANNESMANN ALSO HAD A SECONDQUARTER OPERATING LOSS IT PREDICTED A SIGNIFICANT OPERATING LOSS FOR 1993 BECAUSE OF RESTRUCTURING CHARGES WEAK ECONOMIC CONDITIONS AND COSTS ASSOCIATED WITH THE STARTUP OF ITS MOBILFUNK CELLULAR TELEPHONE UNIT IN MILAN FERRUZZI FINANZIARIA LAST TRADED AT 308 LIRE 20 CENTS OFF 25 BEFORE BEING SUSPENDED AFTER SEVERAL TRADING DELAYS BY REGULATORS BECAUSE OF ORDER IMBALANCES AND THE STOCK'S RAPID PRICE DROPS THE AGRICULTURAL CHEMICAL COMPANY'S BOARD IS TO MEET TODAY TO APPROVE FIRSTHALF ACCOUNTS AND ENDORSE A RESTRUCTURING PLAN TO RESCUE THE HUGELY INDEBTED COMPANY IN ZURICH CIBAGEIGY BEARER SHARES FELL 6 SWISS FRANCS TO 750 FRANCS 53633 THE DRUG AND CHEMICAL COMPANY'S GROUP SALES IN THE FIRST NINE MONTHS TOTALED 17 BILLION FRANCS 1216 BILLION UNCHANGED FROM A YEAR EARLIER 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 9310140006 931014 WHAT'S NEWS BUSINESS AND FINANCE BELL ATLANTIC'S BID TO ACQUIRE CABLE GIANT TELECOMMUNICATIONS AND ITS LIBERTY MEDIA SPINOFF COULD VAULT THE BABY BELL TO THE FOREFRONT OF SHAPING AN INTERACTIVE VIDEO WORLD FOR THE 21ST CENTURY THE DEAL WHICH COULD SPUR A FLURRY OF OTHER MERGERS AND ALLIANCES HAS A VALUE OF 118 BILLION AND COULD RISE TO OVER 20 BILLION THE ROLE OF TCI'S JOHN MALONE IN THE BELL DEAL THROWS INTO UNCERTAINTY THE CAST OF PLAYERS IN THE BATTLE FOR PARAMOUNT MERGER ACTIVITY THIS YEAR IS MORE THAN DOUBLE THE 1992 PACE AND IS BEING SPURRED BY HIGH STOCK PRICES AND RAPID CHANGE IN SEVERAL INDUSTRIES THE LATEST DEALS ARE BEING FUNDED LARGELY BY STOCKS UNLIKE THE 1980S BUYOUTS WHICH WERE FINANCED BY JUNK BONDS WOOLWORTH PLANS TO CLOSE 970 OF ITS STORES IN THE US AND CANADA ELIMINATE 13000 JOBS AND TAKE A 480 MILLION CHARGE IN ITS THIRD QUARTER THE MOVES WHICH MARK WOOLWORTH'S SECOND MAJOR CUTBACK IN TWO YEARS REPRESENT ABOUT 10 OF THE COMPANY'S STORES WORLDWIDE AND 9 OF ITS WORK FORCE THE WHITE HOUSE DECIDED TO CUT IN HALF THE EARLY FINANCIAL GAINS MADE BY COMPANIES THAT WOULD TAKE ADVANTAGE OF A CLINTON PROPOSAL IN WHICH THE GOVERNMENT WOULD PAY MOST OF THE MEDICAL COSTS FOR EARLY RETIREES CALPERS TOLD 18 MANAGEDCARE COMPANIES THAT IT EXPECTS A 5 ROLLBACK IN HEALTHCARE PREMIUMS FOR 900000 PUBLIC EMPLOYEE FAMILIES NEXT YEAR THE SELLING PACE OF VEHICLES BUILT IN NORTH AMERICA IN EARLY OCTOBER ROSE TO ITS HIGHEST LEVEL SINCE THE SUMMER SIGNALING A BRISK START FOR 1994 MODELS TRAVELERS SAID IT WILL TAKE A 325 MILLION CHARGE FOR POLLUTION RESERVES RESULTING IN A LOSS FOR THE THIRD QUARTER IN THE LATEST IN A STRING OF ENVIRONMENTAL LOSSES AT INSURANCE FIRMS BUT TRAVELERS SAID OPERATING RESULTS FOR THE PERIOD EXCLUDING THE CHARGE WILL BE BETTER THAN IN COMPARABLE PERIODS US TRADE NEGOTIATORS IN JAPAN OUTLINED THEIR FIRST CONCRETE PROPOSALS FOR REDUCING THE TRADE IMBALANCE INCLUDING NUMERICAL BENCHMARKS IN CERTAIN SECTORS TO MEASURE PROGRESS THE WHITE HOUSE PROPOSED A TAX INCREASE ON AIRLINE TICKETS TO HELP PAY FOR THE NORTH AMERICAN FREE TRADE PACT THE PROPOSAL IS RAISING OPPOSITION IN THE AIRLINE INDUSTRY AND IS BOUND TO RAISE CONSUMER RESISTANCE TO NAFTA PRUDENTIAL INSURANCE PLANS TO SELL TO THE PUBLIC AN 87 STAKE IN A MALL SUBSIDIARY IN A 585 MILLION OFFERING ITS LARGEST SINGLE MOVE TO DATE TO REDUCE ITS REALESTATE EXPOSURE FIRST CHICAGO AND SHAWMUT REPORTED STRONG THIRDQUARTER PROFIT CONTINUING THE BANKING INDUSTRY'S TREND DELTA AIR LINES SAID IT EXPECTS TO REPORT A FIRSTQUARTER PROFIT BUT CAUTIONED THAT CONTINUING WEAK PERFORMANCE IN EUROPE AND OTHER FACTORS MAY KEEP OVERALL RESULTS SLIGHTLY BELOW SOME ANALYSTS' EXPECTATIONS VLSI TECHNOLOGY REPORTED RECORD THIRDQUARTER PROFIT OF 75 MILLION BUT ITS STOCK SANK 14 IN HEAVY TRADING THE STOCK'S FALL APPARENTLY WAS AT LEAST PARTLY BECAUSE OF CONCERN OVER THE CHIP MAKER'S PLAN TO OFFER NEW SHARES BONDS LEHMAN BROTHERS TREASURY INDEX 569831 OFF 457 COMMODITIES OIL 1864 A BARREL OFF SEVEN CENTS DOW JONES FUTURES INDEX 12814 UP 020 SPOT INDEX 11887 UP 010 DOLLAR 10595 YEN OFF 005 16015 MARKS UP 00071 9310140005 931014 REVIEW & OUTLOOK EDITORIAL THE FOB LOOPHOLE IT SOMEHOW CAUGHT OUR EYE THAT BARBRA STREISAND WILL PICK UP 20 MILLION FOR TWO DAYS' WORK AT THE MGM GRAND CASINO IN LAS VEGAS WE'VE NEVER OBJECTED TO ANYONE COLLECTING WHAT THE MARKET THINKS SHE OR HE IS WORTH BUT WE DO RECALL THAT MS STREISAND IS A CERTIFIED FRIEND OF BILL AND WE SOMEHOW DOUBT THIS WILL PROVOKE A DENUNCIATION OF GREED OF THE SORT THE PRESIDENT AND HIS WIFE HAVE LEVELED AT DOCTORS INSURERS AND DRUG MANUFACTURERS INDEED MS STREISAND AND SIMILARLY SITUATED FOBS ENJOY A PRIVILEGED POSITION UNDER THE NEW TAX CODE MR CLINTON HAS IMPOSED AS PENANCE FOR THE GREED DECADE CERTAINLY 20 MILLION IN LOOT QUALIFIES HER AS RICH AND THUS SHE'LL BE CALLED UPON TO PAY HER FAIR SHARE BUT AT LEAST MGM GRAND INC GETS TO DEDUCT HER COMPENSATION AS AN ORDINARY BUSINESS EXPENSE TAKING HER 20 MILLION OFF ITS GROSS RECEIPTS BEFORE PAYING TAXES ON WHATEVER NET IS LEFT THAT'S PRESUMABLY BECAUSE IN THE MORAL UNIVERSE OF THE CLINTON TAX CODE WARBLING TUNES FOR VEGAS HIGH ROLLERS QUALIFIES AS WORK OF REDEEMING SOCIAL VALUE FOR CERTAIN MORE SUSPECT LINES OF EMPLOYMENT PAY CAN NO LONGER BE DEDUCTED AS AN ORDINARY COST OF BUSINESS AT LEAST IF OVER A YEAR IT ADDS UP TO 1/20TH OF WHAT MS STREISAND TAKES FOR A COUPLE HOURS OF WORK MGM GRAND CAN DEDUCT WHATEVER IT DECIDES TO PAY HER BUT IT CAN'T DEDUCT MORE THAN 1 MILLION OF WHATEVER IT PAYS ITS TOP FIVE EXECUTIVES AS IT HAPPENS THESE FOLKS DON'T MAKE ANYTHING LIKE WHAT MS STREISAND DOES PRESIDENT AND CEO BOB MAXEY HAS BASE PAY OF 525000 A YEAR AND CHAIRMAN FRED BENNINGER GETS 610000 YOU COULD ARGUE THAT IT'S DIFFERENT BECAUSE THEY SET THEIR OWN SALARIES BUT THEY DON'T THEY REPORT TO A BOARD DOMINATED BY MAJORITY SHAREHOLDER KIRK KERKORIAN NOT KNOWN AS A BLUSHINGVIOLET NEGOTIATOR WHAT MR CLINTON'S TAX LAW REALLY MEANS IS THAT MR KERKORIAN CAN BE MORE GENEROUS WITH MS STREISAND THAN WITH MR MAXEY OR MR BENNINGER OR IF YOU TURN IT AROUND WITH A FEW ENVELOPEBACK CALCULATIONS MS STREISAND GETS A LOWER TRUE TAX RATE ON WHAT MR KERKORIAN HAS TO SHELL OUT ON HER MGM EARNINGS SHE WILL FACE SOMETHING LIKE AN EFFECTIVE TAX RATE OF 396 AND GIVE MR CLINTON'S TAX COLLECTORS ABOUT 8 MILLION IF MR KERKORIAN DECIDED AN EXECUTIVE WAS WORTH 20 MILLION GROSS THE COMBINED CORPORATE AND PERSONAL TAX ON THIS AMOUNT WOULD COME TO SOME 12 MILLION AN EFFECTIVE RATE OF 60 DESPITE EVERYTHING MR CLINTON UNDERSTANDS THAT COMPANIES MUST BE ABLE TO OFFER COMPETITIVE SALARIES FOR EXECUTIVES AND THUS PERMITS A LOOPHOLE FOR PERFORMANCEBASED COMPENSATION SO THERE'S NO SPECIAL PENALTY FOR STOCK OPTIONS MR MAXEY HOLDS OPTIONS ON 160000 MGM GRAND SHARES AND MR BENNINGER HOLDS 150000 IT'S DOUBTFUL THAT THEY MAKE ANYTHING LIKE MS STREISAND'S YEARLY COMPENSATION LET ALONE HOURLY RATE FOR SUCCESS IN INCREASING SHAREHOLDER VALUE SO LET'S TAKE A MOMENT TO DECONSTRUCT VIEWING BUSINESS AS AN INHERENTLY SUSPECT ENTERPRISE AND BUSINESS PEOPLE AS POTENTIAL LOOTERS IF NOT WATCHED CLOSELY MR CLINTON'S TAX CODE WADES INTO THE MARKET FOR EXECUTIVE SALARIES IT IS PRIMA FACIE EVIDENCE OF CORRUPTION OR SOCIAL GROSSNESS IF MANAGERS EARN TOO MUCH THOUGH WE'RE NOT EXACTLY SURE HOW THE MORAL FAULT LINE CAME TO BE PRECISELY A MILLION DOLLARS HAPPILY THE FORMER GOVERNOR OF ARKANSAS HAS DIVINED A WAY TO KEEP BUSINESS LEADERS FROM RESTING ON THEIR DUFFS BY HARNESSING THEIR GREED FOR SOCIALLY CONSTRUCTIVE ENDS BUT NO SUCH SPECIAL SCRUTINY IS NEEDED FOR SOMEONE WHO MAKES MORE THAN A MILLION SERENADING LOUNGE LIZARDS OR HITTING BASEBALLS WE'RE NOT SURE WE UNDERSTAND THE MORALITY HERE WHAT WE DO UNDERSTAND IS THAT A LOT OF HOLLYWOOD CELEBRITIES AND FAR FEWER CHIEF EXECUTIVES ARE CERTIFIABLE FOBS 9310140004 931014 LAIDLAW INC SWUNG TO LOSS IN 4TH QUARTER FROM YEARAGO PROFIT BURLINGTON ONTARIO LAIDLAW INC HIT BY CHARGES AND PRICE COMPETITION FOR WASTEMANAGEMENT SERVICES REPORTED A LOSS OF 3349 MILLION FOR THE FOURTH QUARTER ENDED AUG 31 COMPARED WITH NET INCOME OF 249 MILLION A YEAR EARLIER LAIDLAW A WASTEMANAGEMENT AND TRANSPORTATION CONCERN ALSO NAMED ONE OF ITS DIRECTORS JAMES BULLOCK AS PRESIDENT AND CHIEF EXECUTIVE OFFICER LAIDLAW'S RESULT INCLUDED A CHARGE OF 105 MILLION FOR LANDFILL CLOSURE COSTS AND LOWER CARRYING VALUES OF SOME HAZARDOUSWASTE FACILITIES IN CANADA THE RESULT ALSO INCLUDED WRITEDOWNS TOTALING 2438 MILLION REFLECTING A LOWER CARRYING VALUE FOR LAIDLAW'S MINORITY STAKES IN ADT LTD A BERMUDA SECURITY CONCERN AND ATTWOODS PLC OF ENGLAND A WASTEMANAGEMENT CONCERN WITHOUT THE CHARGES LAIDLAW'S PROFIT FROM OPERATIONS FELL TO 175 MILLION FROM 399 MILLION A YEAR EARLIER THE COMPANY BLAMED PRICE COMPETITION REDUCED WASTE VOLUMES AND COST OVERRUNS ON SOME CONTRACTS FOR THE DECLINE A LAIDLAW SPOKESMAN CALLED THE LOWER PROFIT FROM OPERATIONS IN THE QUARTER AN ABERRATION FOR THE FISCAL YEAR LAIDLAW HAD A NET LOSS OF 2916 MILLION COMPARED WITH NET INCOME OF 1324 MILLION A YEAR EARLIER WHILE REVENUE CLIMBED 35 TO 199 BILLION MR BULLOCK 49 YEARS OLD SUCCEEDS DONALD JACKSON AS PRESIDENT AND CHIEF EXECUTIVE MR JACKSON ANNOUNCED HIS RESIGNATION LAST WEEK CITING DIFFERENCES OF OPINION CONCERNING LAIDLAW'S STRATEGIC DIRECTION MR BULLOCK WILL LEAVE HIS POST AS PRESIDENT AND CHIEF EXECUTIVE OF CADILLAC FAIRVIEW CORP OF TORONTO A PROPERTYDEVELOPMENT CONCERN MR BULLOCK HAS BEEN A LAIDLAW DIRECTOR SINCE 1991 HE WASN'T AVAILABLE FOR COMMENT 9310140003 931014 THE INTERACTIVE AGE THE ACQUISITION OF TCI HOW BIG A DEAL IS IT REGULATORS AND JUDGE WILL HAVE FINAL SAY NEW YORK THE VALUE OF BELL ATLANTIC CORP'S PLAN TO ACQUIRE TELECOMMUNICATIONS INC COULD ULTIMATELY EXCEED 20 BILLION MAKING THE TRANSACTION ONE OF THE LARGEST IN CORPORATE HISTORY THE ACTUAL VALUE HOWEVER WILL DEPEND ON WHAT ASSETS OF TCI AND LIBERTY MEDIA CORP FEDERAL REGULATORS AND THE FEDERAL JUDGE WHO OVERSEES THE BREAKUP OF THE BELL SYSTEM DECIDE THAT BELL ATLANTIC CAN OWN UNDER A LETTER OF INTENT BELL ATLANTIC WOULD ACQUIRE ALMOST ALL OF TCILIBERTY'S ASSETS FOR THESE CABLE TELEVISION OPERATIONS OUTSIDE THE PHONE COMPANY'S TURF BELL ATLANTIC WOULD ISSUE ABOUT 220 MILLION SHARES OF A NEWLY ESTABLISHED CLASS B STOCK AT A SET PRICE OF 54 EACH OR 118 BILLION BELL ATLANTIC ALSO WOULD ASSUME 96 BILLION IN TCI AND LIBERTY MEDIA DEBT IF THE FEDERAL JUDGE OVERSEEING THE BREAKUP OF THE BELL SYSTEM GRANTS BELL ATLANTIC WAIVERS TO ACQUIRE PROGRAMMING HOLDINGS THAT IT IS NOW PROHIBITED FROM OWNING THE VALUE OF THE DEAL COULD EXCEED 16 BILLION AND THE VALUE COULD SURPASS 20 BILLION IF TCI IS ABLE TO SWAP WITH OTHER CABLE OPERATORS OUTSIDE OF BELL ATLANTIC'S REGION CERTAIN CABLE SYSTEMS FOR OTHERS WITH AN EQUAL VALUE IF THE WAIVER APPLICATIONS ARE HELD UP OR DENIED BELL ATLANTIC SAID THE PROGRAMMING HOLDINGS AND CERTAIN OTHER ASSETS WOULD BE SPUN OFF INTO A NEW PUBLIC COMPANY TO TCILIBERTY SHAREHOLDERS TCI AND BELL ATLANTIC MUST STILL NEGOTIATE A FINAL AGREEMENT WHICH WOULD REQUIRE THE APPROVAL OF BOTH COMPANIES' SHAREHOLDERS THE FEDERAL COMMUNICATIONS COMMISSION AND FEDERAL ANTITRUST REGULATORS THE COMPANIES DON'T EXPECT TO COMPLETE THE DEAL BEFORE THE SECOND HALF OF NEXT YEAR 9310140002 931014 TECHNOLOGY & HEALTH SUN MICROSYSTEMS' NEW PAY PLAN HITS EXECUTIVES' WALLETS BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL SUN MICROSYSTEMS INC'S CHIEF EXECUTIVE OFFICER SCOTT MCNEALY AND THE REST OF THE COMPANY'S TOP EXECUTIVES HAVE TAKEN PAY CUTS AS A RESULT OF A NEW COMPENSATION PLAN INSTITUTED AT MR MCNEALY'S REQUEST THAT LINKS THEIR COMPENSATION MORE CLOSELY TO THE COMPANY'S PERFORMANCE THE COMPUTER CONCERN'S EXECUTIVES NOW WILL GET MORE STOCK OPTIONS AND LESS CASH SALARY MR MCNEALY'S SALARY FOR THE FISCAL YEAR ENDED JUNE 30 WAS SLASHED 27 TO 400000 FROM 550000 HIS BONUS WAS CUT 43 TO 251304 FROM 445763 HE RECEIVED 60000 STOCK OPTIONS BUT THEY AREN'T WORTH A PENNY RIGHT NOW THE EXERCISE PRICE IS 2825 AND THE STOCK'S RECENT TRADING RANGE IS ABOUT 22 A SHARE THE CUTS IN SALARY AND BONUS DON'T QUITE MATCH THE ROUGHLY 47 HIT SUN INVESTORS HAVE TAKEN SINCE JANUARY AS THE COMPANY'S STOCK PRICE TUMBLED FROM 41 TO YESTERDAY'S OVERTHECOUNTER CLOSING PRICE OF 21625 MR MCNEALY ISN'T TAKING THE PAY CUT OUT OF ANY SENSE OF SOLIDARITY WITH INVESTORS HE'S NOT FEELING GUILTY ABOUT THE COMPANY'S PERFORMANCE SAID MARTY COLEMAN A SPOKESWOMAN SHE SAID MR MCNEALY RECOMMENDED CHANGING THE COMPENSATION PLAN BECAUSE OF A PHILOSOPHY THAT EXECUTIVES SHOULD BE PAID BASED ON THE PERFORMANCE OF THE COMPANY THE BEST WAY TO DO THAT IS WITH STOCK OPTIONS WE THINK STOCKHOLDERS LIKE THAT NO DOUBT THEY WILL IF IT BOOSTS SUN'S STOCK PRICE THE COMPANY HAD A STRONG FISCAL FOURTH QUARTER IN WHICH NET INCOME MORE THAN DOUBLED TO 761 MILLION OR 72 CENTS A SHARE ON REVENUE OF 13 BILLION BUT WALL STREET REMAINS WORRIED ABOUT POTENTIAL COMPETITIVE THREATS AND PRICE CUTTING IN SUN'S MAINLINE BUSINESS WORKSTATIONS 9310140001 931014 WHO'S NEWS PUETTE LEAVES POST AT APPLE COMPUTER AS SHAKEUP CONTINUES CUPERTINO CALIF THE PRESIDENT OF APPLE COMPUTER INC'S US MARKETING ARM ROBERT PUETTE HAS BECOME THE LATEST CASUALTY OF A MANAGEMENT SHAKEUP AT THE PERSONAL COMPUTER MAKER MR PUETTE WHO JOINED THE COMPANY IN 1990 FROM HEWLETTPACKARD CO WAS FORCED TO RESIGN YESTERDAY IN A MOVE TO THIN APPLE'S MANAGEMENT RANKS AND BUILD A NEW MANAGEMENT TEAM UNDER MICHAEL SPINDLER ACCORDING TO PEOPLE INSIDE THE COMPANY HIS DUTIES WILL BE ASSUMED BY IAN DIERY AN EXECUTIVE VICE PRESIDENT WHO HAS RECENTLY BECOME A TOP LIEUTENANT TO MR SPINDLER MR PUETTE COULDN'T BE REACHED FOR COMMENT THE NEWS EMERGED AS APPLE PREPARES TODAY TO RELEASE ITS FOURTHQUARTER EARNINGS WHICH ANALYSTS EXPECT TO SHOW A LOSS ON FLAT OR LOWER REVENUES THE COMPANY HAS BEEN UNDER SEVERE PRICING PRESSURE THAT HAS CUT THE PROFITS ON ITS MACINTOSH COMPUTER LINE TIM BAJARIN AN ANALYST AT CREATIVE STRATEGIES INC IN SAN JOSE CALIF SAID THAT SALES OF MR PUETTE'S UNIT ARE RESPECTABLE BUT THAT MR SPINDLER AND MR DIERY APPARENTLY HAVE DECIDED TO ASSEMBLE A NEW TEAM OF EXECUTIVES MR SPINDLER BECAME CHIEF EXECUTIVE IN JUNE TAKING THAT TITLE FROM JOHN SCULLEY WHO REMAINS CHAIRMAN THE COMPANY MAINTAINS THAT MR SCULLEY MADE THAT CHANGE VOLUNTARILY BUT ALBERT EISENSTAT WHO SAYS HE WAS FORCED OUT AS AN EXECUTIVE VICE PRESIDENT FROM THE COMPANY CHARGED IN A LAWSUIT THAT MR SCULLEY WAS FORCED TO STEP DOWN BY APPLE'S OUTSIDE DIRECTORS MR PUETTE 51 YEARS OLD SPENT 24 YEARS AT HEWLETTPACKARD BEFORE JOINING APPLE HE SUCCEEDED ALLAN LOREN WHO WAS FORCED TO RESIGN IN AN EARLIER MANAGEMENT SHAKEUP 9310140167 930921 NEW PONY HOW A SKUNK WORKS' KEPT MUSTANG ALIVE ON A TIGHT BUDGET FORD TEAM BROKE THE RULES TO REDESIGN A LEGEND THAT HAD HIT THE SKIDS RAMBO' VS BRUCE JENNER' BY JOSEPH B WHITE AND OSCAR SURIS STAFF REPORTERS OF THE WALL STREET JOURNAL DEARBORN MICH FORD MOTOR CO TODAY WILL BEGIN SHOWING OFF A NEW MUSTANG COUPE AND CONVERTIBLE HEIRS TO ONE OF THE BESTLOVED NAMES IN THE AMERICAN AUTO BUSINESS FORD WILL ACT AS THOUGH THERE WAS NEVER A DOUBT THAT THE MUSTANG WOULD GALLOP ALONG INTO THE NEXT CENTURY IT'S AN AMERICAN ICON DECLARES ALEXANDER J TROTMAN FORD'S PRESIDENT OF WORLDWIDE AUTOMOTIVE OPERATIONS AND PATRON SAINT OF THE NEW MUSTANG BUT THIS AMERICAN ICON ALMOST BECAME JUST ANOTHER MEMORY NEVER MIND THAT THE MUSTANG NAME IS ALMOST AS WELL KNOWN AS FORD ITSELF NEVER MIND THAT FANATICAL MUSTANG FAN CLUBS WERE CLAMORING FOR A NEW CAR OR THAT THE MUSTANG BELONGS TO AN ELITE GROUP OF DETROIT CREATIONS THAT HAVE INSPIRED ROMANCE ROCK SONGS AND RIOTOUS HORMONAL GLEE IN THE BRUTAL GLOBAL AUTO INDUSTRY OF THE 1990S HORMONES TAKE A BACK SEAT TO CASH FLOW AND WITH A PROJECTED 1 BILLION DEVELOPMENT COST A MUSTANG OVERHAUL LOOKED TO BE TOO EXPENSIVE WHEN FORD EXECUTIVES FIRST CONSIDERED IT IN LATE 1989 ENTER THE MEMBERS OF A GROUP KNOWN INSIDE FORD AS TEAM MUSTANG IN JUST THREE YEARS THIS GROUP OF ABOUT 400 PEOPLE SCRAMBLED TO SAVE THEIR BELOVED CAR AND SOLVE A RIDDLE FOR THE 1990S HOW DO YOU MAKE A PRODUCT THAT STIRS THE SOUL ON A SKINFLINT BUDGET TO FIND AN ANSWER THE MUSTANG TEAM BROKE MANY OF THE RULES THAT GOVERN PRODUCT DEVELOPMENT IN THE RIGIDLY DISCIPLINED CORPORATION AND IN THE PROCESS SURVIVED SOME CLOSE CALLS MORE THAN ONCE THEY STRUGGLED TO RECONCILE THE CONFLICTING FORCES OF FINANCE AND FEELING THE DANGER WITH THE MUSTANG WAS THAT IT WAS SO EMOTIONAL YOU HAD MORE CHANCE TO GO OFF IN THE WRONG DIRECTION SAYS JOHN COLETTI A FOUNDING MEMBER OF THE GROUP SOME MUSTANG STYLISTS WANTED A WILD MUSCLECAR LOOK NICKNAMED RAMBO OTHERS THOUGHT A MILDER DESIGN NICKNAMED BRUCE JENNER WOULD SELL BETTER THE COMPROMISE WE SENT BRUCE BACK TO THE GYM SAYS MR COLETTI THE RESULT WAS SCHWARZENEGGER RUGGED BUT CULTURED WHEN THE CAR GOES ON SALE DEC 9 CONSUMERS WILL DECIDE WHETHER TEAM MUSTANG SUCCEEDED IN CREATING A CAR THAT WILL MAKE PEOPLE DUST OFF THEIR OLD MUSTANG SALLY RECORDS AND BOOGIE INTO THE SHOWROOMS CERTAINLY THE NEW MUSTANG RELIES HEAVILY ON THE MYSTIQUE AND NOSTALGIA EVOKED BY ITS FORERUNNERS THE CAR'S STYLING IS PURPOSELY REMINISCENT OF THE LINES OF THE ORIGINAL 2368 1964 1/2 MODEL INTRODUCED IN THE MIDDLE OF THE '64 MODEL YEAR THE DESIGN WAS LATER SMOOTHED OUT TO REFLECT THE AERO STYLE FORD PIONEERED IN THE '80S THE GALLOPING CHROME HORSE IS BACK IN THE CENTER OF THE GRILLE BEHIND THE HORSE HOWEVER THE TECHNOLOGY ISN'T REVOLUTIONARY FOR NOW THE SAME V8 ENGINE THAT POWERS THE CURRENT GT MODEL WILL RUMBLE UNDER THE NEW MUSTANG GT'S HOOD ALREADY CLASSIC MUSTANG AFICIONADOS SOME OF WHOM SERVED AS DESIGNCONTEST JURORS DURING THE NEW CAR'S DEVELOPMENT ARE CHOOSING UP SIDES IT LOOKS LIKE ALL OF THE JAPANESE PLASTIC CARS ON THE ROAD TODAY COMPLAINS KATHY MUSSINA WHO SAW A PHOTO OF THE NEW MUSTANG LAST MONTH AT A MEETING OF A MUSTANG FAN CLUB IN HURST TEXAS COUNTERS RICHARD RODRIGUEZ IT'S SHARP FORD EXECUTIVES DECLARE THEY ARE THRILLED WITH THE NEW MUSTANG WHICH IS ARRIVING IN TIME FOR NEXT APRIL'S 30TH ANNIVERSARY OF THE ORIGINAL MUSTANG'S SENSATIONAL DEBUT FORD HAS SMARTED RECENTLY FROM WALL STREET CRITICISM THAT IT OVERSPENDS ON NEW PRODUCTS BUT FORD OFFICIALS SAY THE MUSTANG WAS REDONE IN THREE YEARS FOR ABOUT 700 MILLION THAT IS 25 LESS TIME AND 30 LESS MONEY THAN FOR ANY COMPARABLE NEW CAR PROGRAM IN FORD'S RECENT HISTORY AND THE AUTO MAKER PLANS TO USE THE SAVINGS TO POSITION THE MUSTANG AT BELOW THE 13399 STARTING STICKER PRICE OF ITS ARCHRIVAL CHEVROLET'S CAMARO CHEVROLET LAUNCHED A REDESIGNED CAMARO EARLIER THIS YEAR AND IS PROMOTING THE CAR HEAVILY TO GRAB WOULDBE MUSTANG BUYERS FORD EXECUTIVES HOPE THE NEW MUSTANG'S LOWCOST SALVATION WILL BE A SOURCE OF INSPIRATION FOR OTHER FORD ENGINEERS IT SET THE GUIDELINES FOR HOW PRODUCTION TEAMS SHOULD BE FORMED SAYS KENNETH K KOHRS FORD'S VICE PRESIDENT OF CAR PRODUCT DEVELOPMENT THE FANFARE COMES AS QUITE A RELIEF TO MR COLETTI TO WILL BODDIE THE ENGINEER WHO LED THE MUSTANG DEVELOPMENT TEAM AND TO CHIEF ENGINEER MICHAEL ZEVALKINK AND PROGRAM MANUFACTURING BOSS DIA HOTHI NOT LONG AGO IT SEEMED THEIR CAREERS WERE RIDING ON A HORSE THAT WOULDN'T GO THE DISTANCE THE MUSTANG WAS IN SORRY SHAPE IN 1989 THE CAR HAD STUMBLED THROUGH THE 1980S ESSENTIALLY UNCHANGED FROM ITS DUMPY 1979 INCARNATION SLICKER FASTER HIGHERQUALITY CARS FROM JAPAN WERE WHIZZING PAST THE MUSTANG WHICH WAS ONE OF FORD'S MOST TROUBLEPLAGUED MODELS DIEHARDS STILL LOVED THE V8 POWERED GT MODEL BUT ENTHUSIASM FOR THE CAR WAS FAR FROM THE PEAK OF THE MUSTANG'S HEYDAY WHEN 600000 WERE SOLD IN 1966 AFTER HITTING A POST1982 HIGH OF 172602 IN 1987 MUSTANG SALES SLID TO JUST OVER 86000 LAST YEAR ONE REASON WAS THE FORD PROBE A RAKISH COUPE BUILT BY FORD PARTNER MAZDA MOTOR CORP AT ITS FLAT ROCK MICH FACTORY THE PROBE IN FACT ONCE WAS SCHEDULED TO WEAR THE MUSTANG BADGE FORD DECIDED AGAINST THAT BUT AT THE 75YEAROLD DEARBORN FACTORY THAT BUILT MUSTANGS THE FUTURE LOOKED BLEAK THE LAST STRAW WAS A FEDERAL SAFETY RULE REQUIRING ALL CARS SOLD AFTER SEPT 1 1993 TO HAVE PASSIVE RESTRAINTS THAT MEANT A MAJOR OVERHAUL TO ACCOMMODATE AIR BAGS SKEPTICS IN FORD MANAGEMENT SAID THE COST WASN'T JUSTIFIED FOR A NICHE VEHICLE IN AUGUST 1989 MR COLETTI AND A SMALL GROUP OF MANAGERS GOT THE TASK OF PROVING THEM WRONG THEY FORMED A SKUNK WORKS DEVELOPMENT TEAM AND SET OUT ON A QUEST SOME OF US WERE ON THE TEAM JUST TO SAVE THE MUSTANG SAYS MR COLETTI BUT HIS PRIDE HAD BEEN CHALLENGED TOO I'D HEARD ENOUGH THAT THE JAPANESE CAN DO THIS OR THE JAPANESE CAN DO THAT THEY'RE NOT SUPERHUMANS HIS PRIDE DIDN'T STOP THE TEAM FROM MAKING JAPAN ONE OF THE FIRST STOPS ON A SIXMONTH GLOBAL BRAINSTORMING TOUR FROM HIROSHIMA WHERE MAZDA IS BASED TO FORD'S OPERATIONS IN AUSTRALIA TO THE INDUSTRIAL CENTERS OF GERMANY AND ITALY THE CREW SEARCHED FOR CLUES TO HOW RIVALS BROUGHT OUT NEW CARS FOR HUNDREDS OF MILLIONS OF DOLLARS LESS THAN FORD HAD BEEN SPENDING IT WAS A GRUELING SEARCH BUT MR COLETTI WAS EMBOLDENED BY THE DISCOVERY THAT THE CAUSE HAD A POWERFUL CHAMPION IN LATE 1989 WHILE UNWINDING AT THE FAIRLANE CLUB BAR HE WAS APPROACHED BY A TRIM FELLOW WITH A NEAT MUSTACHE AND A HINT OF A SCOTTISH BROGUE HELLO THE MAN SAID I'M ALEX TROTMAN I KNOW WHO YOU ARE MR COLETTI REPLIED MR TROTMAN THEN EXECUTIVE VICE PRESIDENT OF FORD'S NORTH AMERICAN AUTOMOTIVE OPERATIONS FAR OUTRANKED MR COLETTI BUT HE MADE HIMSELF COMFORTABLE AND BEGAN TO TALK ABOUT THE MUSTANG WHY SHOULD WE DO THIS MR TROTMAN ASKED I CAN'T IMAGINE FORD WITHOUT A MUSTANG MR COLETTI REPLIED ALEX HE CONTINUED IF YOU GO TO A MAN IN THE DEEPEST PART OF TENNESSEE AND ASK HIM WHAT A JAGUAR IS HE MIGHT TELL YOU IT'S A CAT BUT IF YOU ASK HIM WHAT A MUSTANG IS HE'LL TELL YOU IT'S A FORD MR TROTMAN DIDN'T BRIDLE AT MR COLETTI'S IMPLIED CRITICISM OF FORD'S 25 BILLION PURCHASE OF MONEYLOSING JAGUAR OR HIS EMOTIONAL APPEAL FOR FORD TO SPEND MILLIONS MORE ON MUSTANG INSTEAD MR TROTMAN OFFERED ENCOURAGEMENT AND ASKED WHEN WILL I SEE YOU AGAIN MR COLETTI ASSURED HIM IT WOULD BE SOON BUT FIRST THE SKUNKWORKS TEAM HAD TO HAVE A PLAN THAT CAME TOGETHER ONE NIGHT IN EARLY 1990 WHEN MESSRS COLETTI AND HOTHI WERE FLYING HOME FROM GERMANY AFTER A ROUND OF FACTFINDING INTERVIEWS THEY COMPARED NOTES AND IDEAS BEGAN TO GEL AS THEY HURTLED OVER ICELAND THEY BEGAN DRAFTING A PLAN FOR SAVING THE MUSTANG IN JUST THREE YEARS USING A NEW PRODUCTDEVELOPMENT APPROACH A NORMAL NEW CAR PROJECT AT FORD TOOK FOUR YEARS TO COMPLETE AS THE MUSTANG TEAM FLESHED OUT THE PLAN IN MID1990 IT AGREED THAT THE MUSTANG EFFORT WOULD NEED UNPRECEDENTED FREEDOM TO MAKE DECISIONS WITHOUT WAITING FOR APPROVAL FROM HEADQUARTERS OR OTHER DEPARTMENTS TEAM MEMBERS WANTED TO THINK OF THEMSELVES AS INDEPENDENT STOCKHOLDERS OF A MUSTANG CAR CO WHICH HAPPENED TO BE FINANCED BY FORD THE PLAN CALLED FOR PUTTING EVERYONE INVOLVED UNDER ONE ROOFDRAFTSMEN SITTING NEXT TO BEAN COUNTERS ENGINEERS ONE ROOM AWAY FROM STYLISTS THAT MEANT BREACHING THE BUDGETARY WALLS THAT DIVIDED DEPARTMENTS AND PERSUADING DEPARTMENT MANAGERS TO CEDE SOME CONTROL OVER THEIR SUBORDINATES ONE OF THE BOLDEST DECISIONS WAS THAT MR HOTHI THE PROGRAM'S MANUFACTURING CHIEF WOULD GET VETO POWER OVER CHANGES TO THE BODY THAT THREATENED TO DERAIL HIS EFFORTS TO BUILD THE CAR WITH MANY OF THE FACTORY TOOLS USED FOR THE OLD ONE ALL THIS CUT SHARPLY AGAINST THE GRAIN OF FORD'S CORPORATE CULTURE THE EASY PART WAS DEVELOPING A VISION OF WHAT THE CAR SHOULD BE IT SHOULD BE LIKE THE MUSTANG OF 1964 AFFORDABLE SPORTY AND ALLAMERICAN THAT WAS THE MESSAGE FROM HUNDREDS OF MUSTANG ENTHUSIASTS WHO KEPT ABREAST OF THE PONY CAR'S FUTURE THROUGH ELECTRONICMAIL DIALOGUES WITH FORD ENGINEERS MR TROTMAN BOUGHT THE IDEA AND IN SEPTEMBER 1990 THE MUSTANG TEAM WAS MADE INTO AN OFFICIAL PRODUCT PROGRAM WITH THE APPOINTMENT OF MR BODDIE AS PROGRAM MANAGER A 48YEAROLD ENGINEER HE HAD A REPUTATION FOR BEING DIRECT AND TOUGHMINDED HE HAD BEEN WORKING AS CHIEF ENGINEER OF FORD'S ALPHA PROGRAM WHICH WAS AIMED AT DEVELOPING INNOVATIVE DESIGN AND ASSEMBLY TECHNOLOGY FOR FUTURE VEHICLES BUT HE HAD NEVER MANAGED A CAR PROGRAM SOME OF HIS BOSSES WORRIED ABOUT HOW OTHERS WOULD RESPOND TO HIS STYLE YOU ARE GOING TO HAVE TO STRENGTHEN YOUR TEAM SKILLS NEIL W RESSLER FORD'S DIRECTOR OF VEHICLE ENGINEERING TOLD HIM BUT KEEP ALL OF YOUR TOUGH SKILLS SEE RELATED LETTER LETTERS TO THE EDITOR WHAT'S THAT THING YOU'RE DRIVIN' BUDDY WSJ OCT 14 1993 9309210115 YY93 MM10 9310140155 930930 HEALTH PLAN'S DEVILISH DETAILS BY ELIZABETH MCCAUGHEY THE NEWS FROM THE WHITE HOUSE WASN'T ADDING UP AN ESTIMATED 38 MILLION UNINSURED AMERICANS WOULD BE GIVEN HEALTH COVERAGE YET THE ONLY NEW TAX WOULD BE ON CIGARETTES THE NATION WOULD LIMIT HEALTH CARE SPENDING BUT NO ONE WOULD SACRIFICE CHOICE OR QUALITY I FELT UNEASY ABOUT THE MISSING PIECES SO I CALLED THE OFFICE OF SEN HARRIS WOFFORD D PA AND ASKED FOR A COPY OF THE CLINTON HEALTH PLAN I READ IT AND REREAD IT ALL 239 PAGES PLUS CHARTS PORING OVER THE DETAILS CONSULTING DOCTORS AND HEALTH CARE EXPERTS AND SHAKING MY HEAD AT HOW DIFFERENT THE PLAN IS FROM WHAT WE ARE HEARING HERE ARE THE FACTS THAT SURPRISED ME AND THAT WILL PROBABLY TROUBLE MOST PEOPLE PAGE NUMBERS REFER TO THE LATEST DRAFT OF THE PLAN THE BLUEPRINT MADE AVAILABLE TO CONGRESS TWO WEEKS AGO UNDER THE CLINTON PLAN MOST AMERICANS WILL NOT BE ABLE TO HOLD ONTO THEIR PERSONAL PHYSICIAN OR BUY THE KIND OF INSURANCE THAT 77 OF AMERICANS NOW CHOOSE SUCH FEEFORSERVICE INSURANCE ALLOWS THEM TO PICK A DOCTOR GO TO A SPECIALIST WHEN THEY FEEL THEY NEED ONE GET A SECOND OPINION IF THEY HAVE DOUBTS AND SELECT THE HOSPITAL THEY THINK IS BEST THE CLINTON PLAN WILL MAKE ALMOST ALL AMERICANS BUY BASIC HEALTH COVERAGE THROUGH THE REGIONAL ALLIANCE WHERE THEY LIVE REGIONAL ALLIANCES ARE HUGE GOVERNMENT MONOPOLIES THAT WILL PURCHASE BASIC HEALTH CARE FOR EVERYONE IN THE AREA ALLIANCE OFFICIALS WILL NEGOTIATE BENEFIT PACKAGES AND PRICES WITH INSURERS AND HEALTH MAINTENANCE ORGANIZATIONS HMOS GROUPS OF PHYSICIANS AND HOSPITALS THAT PROVIDE TOTAL HEALTH CARE THROUGH COSTCONSCIOUS METHODS TO EACH CONSUMER FOR A PREPAID PREMIUM UNLESS YOU NOW RECEIVE HEALTH CARE THROUGH MEDICARE MILITARY OR VETERANS BENEFITS OR UNLESS YOU OR YOUR SPOUSE WORKS FOR A LARGE COMPANY THE LAW WILL REQUIRE YOU TO BUY BASIC HEALTH COVERAGE FROM THE LIMITED CHOICES OFFERED BY YOUR ALLIANCE IT WILL BE ILLEGAL TO BUY IT ELSEWHERE PAGES 13 15 81 IN ADDITION AN ALLIANCE CANNOT OFFER ANY PLAN THAT COSTS 20 MORE THAN THE AVERAGE PRICE OF ALL PLANS IT OFFERS PAGE 60 PLANS WITH ADDED BENEFITS SUCH AS PAP SMEARS EVERY YEAR INSTEAD OF EVERY THIRD YEAR AND MANY FEEFORSERVICE PLANS WILL BE EXCLUDED BY THE 20 RULE A PRIMARY GOAL OF THE CLINTON PLAN IS TO ELIMINATE A TWOTIER HEALTH CARE SYSTEM WHERE PEOPLE WHO CAN PAY MORE FOR MEDICAL CARE WILL RECEIVE MORE THE PLAN MANDATES CARE BASED ONLY ON DIFFERENCES OF NEED PAGE 11 ANNUAL CEILINGS AND THE 20 RULE WILL MAKE IT VIRTUALLY IMPOSSIBLE FOR SOME ALLIANCES TO OFFER CHOOSEYOUROWNDOCTOR HEALTH INSURANCE AMERICANS HAVE BEEN TOLD THAT THEY WILL ALWAYS HAVE THE OPTION TO BUY FEEFORSERVICE INSURANCE BUT THE PLAN SAYS THAT WITH A WAIVER FROM THE NATIONAL HEALTH BOARD ALLIANCES CAN EXCLUDE ALL FEEFORSERVICE PLANS EFFECTIVELY FORCING MILLION OF CITIZENS TO JOIN AN HMO PAGE 62 WHERE A FEEFORSERVICE PLAN IS OFFERED AN ALLIANCE CAN IMPOSE A COSTLY SURCHARGE THAT WILL DISCOURAGE CONSUMERS FROM CHOOSING IT PAGE 98 ANOTHER RULE COMMUNITY RATING REQUIRES INSURERS TO OFFER THE SAME BASIC PACKAGE TO EVERYONE IN THE REGION FOR THE SAME PRICE PAGE 224 SMOKERS AND NONSMOKERS DRUG ABUSERS AND NONUSERS PAY THE SAME COMMUNITY RATING MEANS THAT THE SICK ARE NOT THROWN OVERBOARD BUT IT ALSO MAKES THOSE WHO ADOPT HEALTHY BEHAVIOR SUBSIDIZE THOSE WHO DO NOT AND IT PUSHES FEEFORSERVICE INSURANCE OUT OF REACH OF MANY AMERICANS WHO NOW CAN AFFORD IT IT WILL BE HARD TO BUY ADDITIONAL INSURANCE THE BASIC BENEFIT PACKAGE IS SKIMPY IS SOME AREAS BUT BECAUSE OF THE COMMUNITY RATING RULE INSURERS MUST OFFER SUPPLEMENTAL POLICIES TO EVERY PERSON IN A REGION AT THE SAME PRICE PAGE 81 HIGH RISK INDIVIDUALS WILL LINE UP BUT INSURERS WILL NOT CARA WALINSKY OF THE HEALTH CARE ADVISORY BOARD AND GOVERNANCE COMMITTEE WHICH ADVISES 800 HOSPITALS WORLDWIDE EXPLAINS THAT THE PLAN WILL MAKE IT AS DIFFICULT AS POSSIBLE FOR YOU TO BUY MORE THAN THE STANDARD PACKAGE SEEING A SPECIALIST AND PAYING FOR IT OUTOFPOCKET WILL BE ALMOST IMPOSSIBLE FEW DOCTORS WILL BE PRACTICING OUTSIDE HMOS THE CLINTON PROPOSAL IS DESIGNED TO DRIVE DOCTORS OUT OF PRIVATE PRACTICE THE PLAN HAS VERY STRONG INCENTIVES BUILT IN THAT WORK AGAINST FEEFORSERVICE NOT ONLY ON THE CONSUMER SIDE BUT ALSO ON THE PROVIDER SIDE EXPLAINS MS WALINSKY EVEN DRS DAVID HIMMELSTEIN AND STEFFIE WOOLHANDLER LEADING PROPONENTS OF A CANADIANSTYLE SINGLEPAYER SYSTEM WARN THAT THE PLAN WILL OBLITERATE PRIVATE PRACTICE PRICE CONTROLS WILL MAKE PRIVATE PRACTICE UNFEASIBLE AMERICANS HAVE BEEN TOLD THAT THERE ARE NO PRICE CONTROLS BUT THE PLAN EMPOWERS ALLIANCES TO SET FEES FOR DOCTORS SEEING PATIENTS ON A FEEFORSERVICE BASIS THE PLAN STATES A PROVIDER MAY NOT CHARGE OR COLLECT FROM A PATIENT A FEE IN EXCESS OF THE FEE SCHEDULE ADOPTED BY AN ALLIANCE PAGE 62 AMERICANS HAVE BEEN TOLD THAT THE QUALITY OF HEALTH CARE WILL NOT DECLINE MANY EXPERTS BELIEVE IT WILL IN HMOS GATEKEEPERS OR PRIMARY CARE PHYSICIANS TIGHTLY LIMIT PATIENT USE OF SPECIALISTS PHYSICIANSUBSCRIBER RATIOS AT HMOS AVERAGE 1 TO 800 HALF THE RATIO OF PHYSICIANS TO THE NATION'S POPULATION UNDER THE PLAN PRESSURE ON GATEKEEPERS TO CURB ACCESS TO SPECIALISTS WILL INCREASE MS WALINSKY PREDICTS THAT ABOVE A THRESHOLD LEVEL OF REASONABLE QUALITY ALLIANCES WILL CHOOSE HMOS BASED ON LOWEST COST NOT HIGHEST QUALITY IN ORDER TO MEET FEDERAL SPENDING LIMITS A PARENT LYING AWAKE WORRIED ABOUT A CHILD'S ILLNESS AND WHETHER THE GATEKEEPER WILL OK A SPECIALIST MIGHT THINK ABOUT BRIBES OR EVEN GOING OUTSIDE THE SYSTEM THE CLINTON PLAN ANTICIPATES THE PROBLEM WITH NEW CRIMINAL PENALTIES FOR PAYMENT OF BRIBES OR GRATUITIES TO INFLUENCE THE DELIVERY OF HEALTH SERVICE PAGE 9 DOCTORS MEANWHILE JOKE ABOUT OFFSHORE PRACTICES HOSPITAL SHIPS OUTSIDE THE THREEMILE LIMIT AND OTHER WAYS FOR FAMILIES TO ESCAPE CONTROLS AND BUY THE HEALTH CARE THEY WANT THE PLAN ALSO TAKES AWAY FROM HMO USERS THE LEGAL PROTECTION MANY STATE LAWMAKERS BELIEVE THEY SHOULD HAVE SOME STATES HAVE PASSED ANY WILLING PROVIDER LAWS TO PREVENT HMOS FROM ARBITRARILY EXCLUDING HOSPITALS PHARMACIES OR PHYSICIANS FROM THEIR NETWORKS HMOS HAVE PROTESTED THAT THESE LAWS HOBBLE COST CONTAINMENT THE CLINTON ADMINISTRATION APPARENTLY AGREES THE PLAN PREEMPTS STATE LAWS PROTECTING CONSUMER CHOICE PAGE 76 THE PLAN'S BIGGEST SURPRISE IS WHO BEARS THE COST OF UNIVERSAL HEALTH COVERAGE THE PLAN REQUIRES STATES TO CREATE HEALTH ALLIANCE REGIONS SIMILAR TO ELECTION DISTRICTS HOW THOSE ALLIANCE LINES ARE DRAWN WILL DETERMINE WHICH AREAS OF THE STATE ARE HIT WITH THE HIGHEST HEALTH CARE PREMIUMS BECAUSE THEY ARE SHOULDERING THE COSTS OF HEALTH COVERAGE FOR THE INNER CITY POOR THE SYSTEM PROMISES TO PIT BLACK AGAINST WHITE POOR AGAINST RICH CITY AGAINST SUBURB THE AVERAGE TREATMENT COST OF A BABY BORN ADDICTED TO DRUGS IS 63000 BECAUSE OF COMMUNITY RATING ANYONE WHO LIVES IN AN URBAN ALLIANCE IS GOING TO PAY HIGH PREMIUMS REGARDLESS OF HIS HEALTH OR BEHAVIOR PART OF THE PREMIUM COVERS HIS OWN CARE PART IS A HIDDEN TAX TO PROVIDE UNIVERSAL HEALTH COVERAGE WITHIN THE ALLIANCE SOME ALLIANCES WILL BEAR ESPECIALLY HEAVY SOCIAL BURDENS OTHERS WILL NOT EVERYONE WILL FIGURE OUT THAT YOU GET MORE HEALTH CARE FOR YOUR DOLLAR OR PAY LOWER PREMIUMS IN AN ALLIANCE WITHOUT INNER CITY PROBLEMS THE PLAN WILL BE AN INCENTIVE FOR EMPLOYERS TO ABANDON CITIES AND RELOCATE CONSIDERING THE NUMBER OF COURT BATTLES WHEN STATES DRAW ELECTION DISTRICTS LAWSUITS OVER MEDICAL GERRYMANDERING ARE INEVITABLE THE PLAN SETS OUT RULES THAT WILL BE DISSECTED IN COURTROOMS ACROSS THE NATION STATES MAY NOT CONCENTRATE RACIAL OR ETHNIC MINORITY GROUPS SOCIOECONOMIC GROUPS OR MEDICAID BENEFICIARIES AND MAY NOT SUBDIVIDE A PRIMARY METROPOLITAN STATISTICAL AREA AN ALLIANCE DRAWN TO INCLUDE A CITY AND ITS SURROUNDING SUBURBS WILL BE CONSIDERED IN COMPLIANCE PAGE 50 HOME PRICES AND LITIGATION FEES WILL RISE AND FALL DEPENDING ON WHICH SUBURBS ARE SUCKED INTO A METROPOLITAN ALLIANCE AND WHICH ESCAPE SUPPOSE A STATE FAILS TO ESTABLISH ITS REGIONAL ALLIANCES ON TIME OR TO MEET ALL FEDERAL REQUIREMENTS THE PLAN EMPOWERS THE SECRETARY OF THE TREASURY TO IMPOSE A PAYROLL TAX ON ALL EMPLOYERS IN THE STATE THE PAYROLL TAX SHALL BE SUFFICIENT TO ALLOW THE FEDERAL GOVERNMENT TO PROVIDE HEALTH COVERAGE TO ALL INDIVIDUALS AND TO REIMBURSE THE FEDERAL GOVERNMENT FOR THE COSTS OF MONITORING AND OPERATING THE STATE SYSTEM PAGE 47 THE PLAN DOES NOT SET ANY LIMIT ON THIS TAX THE CLINTON PLAN IS COERCIVE IT TAKES PERSONAL HEALTH CHOICES AWAY FROM PATIENTS AND FAMILIES AND IT ALSO IMPOSES A SYSTEM OF FINANCING HEALTH CARE BASED ON REGIONAL ALLIANCES THAT WILL MAKE RACIAL TENSIONS FESTER AND PRODUCE MEANSPIRITED POLITICAL STRUGGLES AND LAWSUITS TO SHIRK THE COST OF MEDICAL CARE FOR THE URBAN POOR MEMBERS OF CONGRESS SHOULD READ THE 239PAGE DRAFT RATHER THAN RELYING ON WHAT THEY HEAR AND THEN TURN THEIR ATTENTION TO ALTERNATIVE PROPOSALS THAT AIM TO PROVIDE UNIVERSAL COVERAGE WHILE AVOIDING THE DEVASTATING CONSEQUENCES OF THE CLINTON HEALTH PLAN MS MCCAUGHEY IS A FELLOW AT THE MANHATTAN INSTITUTE IN NEW YORK SEE RELATED LETTERS LETTERS TO THE EDITOR AN ASSAULT ON PERSONAL FREEDOM WSJ OCT 14 1993 9309300002 YY93 MM10 9310130188 931013 WHO'S NEWS UAW'S BIEBER APPEARS TO BE WINNING WAR OF WORDS IN NEGOTIATIONS WITH GM BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT UNITED AUTO WORKERS PRESIDENT OWEN BIEBER IS NO CANDIDATE FOR THE DEBATE TEAM HE'S A LONGWINDED SPEAKER WHO OFTEN GETS TANGLED UP IN HIS WORDS BUT IN NEGOTIATIONS WITH GENERAL MOTORS CORP THIS WEEK IT IS MR BIEBER WHO APPEARS TO BE WINNING THE WAR OF WORDS MR BIEBER'S BLUNT REFUSAL TO ACCEPT MAJOR CONCESSIONS IS CRYSTAL CLEAR WHILE GM'S MESSAGE THAT THE UNION SHOULD BEAR A GREATER SHARE OF THE COMPANY'S PAIN IS BADLY MUDDLED ALTHOUGH GM OFFICIALS HAVE SAID THEY WANT SIGNIFICANT CONCESSIONS FROM THE UAW UNION NEGOTIATORS SAY THE COMPANY ISN'T MAKING ANY EXTRAORDINARY DEMANDS PART OF THE PROBLEM SAY INDIVIDUALS CLOSE TO THE NEGOTIATIONS IS THAT NO ONE ON THE COMPANY SIDE WANTS TO OFFEND MR BIEBER THAT EXECUTIVES OF THE WORLD'S LARGEST INDUSTRIAL CORPORATION FEAR HIM IS PERHAPS THE BEST TESTIMONIAL TO THE INFLUENCE THE 63YEAROLD MR BIEBER NOW WIELDS A BEAR OF A MAN WHO WORKED HIS WAY UP FROM BENDING WIRE FOR CAR SEATS IN A MICHIGAN FACTORY MR BIEBER HOLDS IN HIS HANDS NOT ONLY THE FUTURE OF THE UAW BUT PERHAPS OF GM AS WELL AFTER A DECADE THAT SAW GM ELIMINATE 150000 HOURLY JOBS MOST OF THEM UAW POSITIONS MR BIEBER IS AT A CROSSROADS HE CONFRONTS A CHOICE BETWEEN FIGHTING TO MAINTAIN THE UAW'S TRADITION OF HIGH WAGES AND RICH BENEFITS OR BENDING IN HOPES OF REVERSING THE LONG DECLINE IN THE UNION'S GM MEMBERSHIP MR BIEBER IN A RARE INTERVIEW THIS WEEK MAINTAINED THAT GM CAN PROSPER UNDER THE PATTERN CONTRACT NEGOTIATED LAST MONTH WITH FORD MOTOR CO WHEN YOU GET TO THE COLLECTIVE BARGAINING TABLE COMPANIES ALWAYS HAVE ALL KINDS OF REASONS THEY CAN'T MEET THE REASONABLE DEMANDS OF THEIR WORKERS HE SAID WE'VE HEARD IT ALL OVER AND OVER AGAIN IN 1990 CHRYSLER CORP PROTESTED THAT IT COULDN'T AFFORD THE PATTERN AGREEMENT NEGOTIATED THAT YEAR NOW AS MR BIEBER LOVES TO REMIND CRITICS CHRYSLER IS THE MOST PROFITABLE US AUTO MAKER BUT GM IS A DIFFERENT STORY GM'S OUTSIDE DIRECTORS HAVE TOLD PRESIDENT JOHN F SMITH JR AND HIS TOP NEGOTIATOR GERALD KNECHTEL THAT THEY WON'T APPROVE A CONTRACT THAT DOESN'T HELP GM SLASH ITS BLOATED US LABOR COSTS FAST IN AN UNUSUAL MOVE GM'S INDEPENDENT DIRECTORS HAVE SAID THEY WANT TO APPROVE ANY DEAL WITH THE UAW BEFORE IT IS FINAL GM'S DIRECTORS WANT TO AVOID A REPEAT OF 1990 WHEN MR BIEBER AND HIS TOP GM BARGAINER STEPHEN P YOKICH NEGOTIATED AN AGREEMENT THAT PROVIDED IDLED GM HOURLY WORKERS VIRTUALLY FULL WAGES FOR UP TO THREE YEARS THE COST TO GM MORE THAN 3 BILLION WE CLICKED THE GATE SHUT MR BIEBER SAID AFTER THAT TRIUMPH HIS MESSAGE WAS THAT HE HAD COMPLETED A JOBANDINCOME SECURITY FENCE THAT WOULD PROTECT GM HOURLY WORKERS FROM THE CONSEQUENCES OF MANAGEMENT AND PRODUCT DESIGN FAILURES BUT MR BIEBER'S FENCE HAS TURNED OUT TO HAVE BIG GAPS SINCE THE 1990 CONTRACT WAS SIGNED GM HAS SHED 64000 GM JOBS AND GM OFFICIALS ARE WARNING THAT AS MANY AS 85000 MORE JOBS COULD GO UNLESS MR BIEBER BENDS AND HELPS GM MAKE ITS UNPROFITABLE US VEHICLE OPERATIONS COMPETITIVE IF THE UNION DOESN'T GET REALISTIC SAID ONE GM EXECUTIVE WE'LL END UP AN ASSEMBLY COMPANY WITHOUT SIGNIFICANT PARTSMAKING OPERATIONS ONE REASON GM IS LOOKING AT DUMPING MORE PARTS OPERATIONS IS THAT SINCE 1983 THE AVERAGE HOURLY COST OF WAGES AND BENEFITS FOR A GM WORKER SHOT UP 918 WHILE THE WAGES AND BENEFITS FOR THE AVERAGE MANUFACTURING WORKER IN THE US WENT UP AT LESS THAN HALF THAT RATE AS A RESULT THE AVERAGE GM WORKER NOW EARNS 4221 OF WAGES IN BENEFITS MORE THAN DOUBLE THE US AVERAGE OF 1752 AN HOUR THIS GAP COUPLED WITH GM'S INEFFICIENT MANAGEMENT PUTS GM AT A 2000 A VEHICLE COST DISADVANTAGE AGAINST FORD GM'S PARTS OPERATIONS MEANWHILE COMPETE AGAINST COMPANIES THAT PAY LESS THAN HALF OF THE GM WAGE FOR THE SAME WORK MR BIEBER HOWEVER BRISTLES AT THE NOTION THAT CONCESSIONS WOULD PROTECT JOBS WE'VE SOMEHOW CREATED THE MENTALITY THAT GOOD JOBS ARE THE ENEMY INSTEAD OF THE GOAL OF EVERYBODY HE SAID MR BIEBER ARGUES THAT WORKERS HAVE MADE HUGE LEAPS IN PRODUCTIVITY IN RECENT YEARS AND THAT LABOR ACCOUNTS FOR A SHRINKING PORTION OF A CAR'S COST NOR DOES MR BIEBER BELIEVE THAT GM WOULD PROFIT BY GETTING RID OF ITS PARTS OPERATIONS GM'S VERTICAL INTEGRATION HAS SERVED IT WELL HE SAID AND IT WILL CONTINUE TO DO THAT MR BIEBER'S STRENGTH SPRINGS MAINLY FROM HIS POLITICAL SAVVY HIS TIRELESS COURTING OF THE UAW'S RANKANDFILE AND HIS SINGLEMINDED TENACITY IN DEFENDING UAW GAINS AGAINST COMPETITIVE PRESSURE MR BIEBER'S COMMONMAN IMAGE HAS GENUINE ROOTS HE WAS REARED IN RURAL WESTERN MICHIGAN AND GOT HIS START IN THE AUTO INDUSTRY IN 1948 BENDING HEAVYGAUGE WIRE FOR CAR SEATS AT THE NOW DEFUNCT MCINERNEY SPRING & WIRE CO IN GRAND RAPIDS MICH HE EARNS ABOUT 100000 A YEAR LESS THAN MANY MIDDLE MANAGERS IN THE AUTO INDUSTRY LARGELY IGNORED DURING THE REAGAN AND BUSH ADMINISTRATIONS MR BIEBER HAS PLENTY OF CLOUT IN WASHINGTON THESE DAYS HE IS REGULARLY CONSULTED BY THE CLINTON ADMINISTRATION ON SUCH ISSUES AS HEALTH CARE AND AUTOMOTIVE REGULATIONS UNION MEMBERS HOWEVER SAY MR BIEBER IS AN ACCESSIBLE AND UNPRETENTIOUS LEADER IF I NEED TO SEE HIM SAID DICK LONG PRESIDENT OF UAW LOCAL 653 IN PONTIAC MICH I JUST WALK RIGHT INTO HIS OFFICE MR LONG IS CURRENTLY CHAIRMAN OF THE UAW'S BARGAINING TEAM AT GM MR BIEBER HAS HIS CRITICS NOTABLY LEADERS OF THE DISSIDENT NEW DIRECTIONS MOVEMENT WHO CHARGE THAT MR BIEBER IS TOO PASSIVE IN THE FACE OF AUTO INDUSTRY JOB CUTS BUT MR BIEBER HAS DEMONSTRATED IRON DETERMINATION IN CRUSHING THE NEW DIRECTIONS DISSENT MR BIEBER SHOWS SURPRISING PHYSICAL ENDURANCE DESPITE A REPUTATION FOR BEING A HYPOCHONDRIAC DURING CONTRACT NEGOTIATIONS AT FORD LAST MONTH HE WENT 40 HOURS WITHOUT SLEEP BEFORE MAKING UP HIS MIND TO SIGN A DEAL 9310130187 931013 CANTON BUYS NEW BUILDING SALT LAKE CITY CANTON INDUSTRIAL CORP SAID IT ACQUIRED AN OFFICE BUILDING IN DOWNTOWN SALT LAKE CITY TERMS WERE NOT DISCLOSED CANTON INDUSTRIAL IS CONSIDERING MOVING ITS CORPORATE OFFICES TO THE NEW BUILDING 9310130186 931013 LEISURE & ARTS BOOKSHELF FOE OF FREE SPEECH SHOOTS MOUTH OFF BY JONATHAN RAUCH LEGAL SCHOLARS USED TO BE PEOPLE WHO VIEWED THE FIRST AMENDMENT AS A BULWARK TO BE DEFENDED NOW MORE AND MORE OF THEM VIEW IT AS AN OBSTACLE TO BE GOTTEN AROUND NADINE STROSSEN THE LAW PROFESSOR WHO IS PRESIDENT OF THE AMERICAN CIVIL LIBERTIES UNION RECENTLY WORRIED IN THE CHRONICLE OF HIGHER EDUCATION ABOUT THE GROWING MOMENTUM IN OUR NATION'S LAW SCHOOLS TOWARD REPRESSING SPEECH SHE NOTED HOW AT A CONFERENCE IN MARCH FEMINIST LEGAL SCHOLARS GATHERED TO FORGE A STRATEGY TO OVERCOME THE RELUCTANCE OF FEDERAL COURTS TO LIMIT FIRST AMENDMENT RIGHTS IS THE PROLIFIC CASS R SUNSTEIN A UNIVERSITY OF CHICAGO LAW PROFESSOR ONE OF THIS REVISIONIST CROWD FROM HIS PECULIARLY BIFURCATED BOOK DEMOCRACY AND THE PROBLEM OF FREE SPEECH FREE PRESS 300 PAGES 2295 IT IS HARD TO TELL TWO OPPOSING INTELLECTUAL CURRENTS TUG LAW PROFESSOR'S SOUL ON THE ONE HAND THE TRADITIONAL REFLEX TO DEFEND SPEECH FROM GOVERNMENT INTRUSION ON THE OTHER THE RISING IMPULSE PC AS IT WERE TO REGULATE SPEECH IN THE NAME OF SOCIAL JUSTICE A MIDDLE WAY IS HARD TO FIND AND MR SUNSTEIN I THINK HAS NOT FOUND IT POLITICS LIES AT THE CORE OF THE FIRST AMENDMENT MR SUNSTEIN SAYS CALLING THIS RATHER IMPOVERISHED VIEW OF SPEECH A MADISONIAN POSITION THE FIRST AMENDMENT WHICH PROHIBITS LAWS ABRIDGING THE FREEDOM OF SPEECH OR OF THE PRESS ASPIRES MAINLY TO KEEP DEMOCRACY ADEQUATELY DELIBERATIVE HE SAYS BUT THE PRESENT SYSTEM BADLY DISSERVES MADISONIAN GOALS BECAUSE THE MEDIA ARE TOO FULL OF VIOLENCE SEXISM SOUNDBITES SENSATIONALISM HE ADDUCES STATISTICS ABOUT KILLINGS ON TV AND PROVIDES EVIDENCE THAT THE QUALITY OF WHAT PEOPLE HEAR AND READ IS LESS THAN IDEAL IMPERFECTION HOWEVER IS NOT THE SAME AS INADEQUACY AND MR SUNSTEIN PROVIDES NO EVIDENCE THAT THE QUALITY OF DISCOURSE FAILS TO MEET DEMOCRACY'S NEEDS THIS IS IT SEEMS TO ME A FATAL SHORTCOMING IN A COUNTRY OF 22000 NEWSPAPERS AND MAGAZINES 11000 COMMERCIAL RADIO AND TV STATIONS NOT COUNTING CABLE 41000 NEW BOOKS A YEAR AND EVERYTHING FROM THE NEW YORK TIMES TO DISEASED PARIAH NEWS DEMOCRACY SEEMS TO MANAGE JUST FINE NONETHELESS MR SUNSTEIN BELIEVES HE HAS FOUND A CRITICAL FAILURE IN THE MARKET FOR SPEECH BECAUSE THE FIRST AMENDMENT'S GOAL IS TO UPHOLD AND IMPROVE DELIBERATIVE DISCOURSE CORRECTIVE REGULATION IS IN ORDER HE INSISTS INDEED REGULATION OF THE MEDIA MAY BE CONSTITUTIONALLY REQUIRED MR SUNSTEIN ARGUES THAT PROPERTY RIGHTS ARE IN EFFECT GOVERNMENT LICENSES THAT SHOULD BE USED TO PROMOTE SUITABLY BROAD DEMOCRATIC DEBATE IN HIS VIEW THE GOVERNMENT MAY AND PERHAPS MUST ORDER THAT THE EXCLUDED BE GIVEN SPACE IN NEWSPAPERS OR THAT BROADCASTERS AIR FEWER ADS AND MORE MACNEILLEHRER NEWSHOUR SHOPPING CENTER OWNERS CAN BE REQUIRED TO LET PROTESTERS USE THEIR MALLS FOR POLITICAL RALLIES A REQUIREMENT HE GAILY SAYS THAT CREATES NO REAL INTRUSION INTO THE LEGITIMATE INTERESTS OF THE SHOPPING CENTER OWNERS TO SHUT OUT DISAGREEABLE GROUPS WOULD ENTAIL VIEWPOINT DISCRIMINATION BY GOVERNMENT WHICH MR SUNSTEIN RIGHTLY ABHORS PRESUMABLY THEN THE GOVERNMENT MAY FORCE A JEWISH OWNER TO LET NEONAZIS RALLY IN HER MALL OR A PROCHOICE OWNER TO LET PROTESTERS WAVE BOTTLED FETUSES AT SHOPPERS THIS IS MADISONIAN PERHAPS BECAUSE I'M A PROFESSIONAL PRINT JOURNALIST WHEN MR SUNSTEIN ANNOUNCED THAT MANY IMAGINABLE DEMOCRATIC INTERFERENCES WITH THE AUTONOMY OF BROADCASTERS OR NEWSPAPERS ARE NOT ABRIDGEMENTS' AT ALL I GAPED IN AMAZEMENT ONE HATES TO THINK WHAT IMAGINABLE INTERFERENCES HIS THEORY MIGHT JUSTIFY WHY NOT REQUIRE THAT WHITEOWNED NEWSPAPERS DEVOTE PROPORTIONAL SPACE TO COVERAGE OF BLACKS HOW ABOUT FEDERAL EQUAL ACCESS MONITORS YET HERE IS THE FUNNY THING IN PRACTICE MR SUNSTEIN ESCHEWS ALL BUT THE MILDEST USE OF HIS OWN PRINCIPLES HAVING RATHER BREATHTAKINGLY ASSERTED FOR INSTANCE THAT BROADCAST STATIONS ARE THE MODERN EQUIVALENTS OF STREETS AND PARKS PUBLIC PROPERTY HE BACKS AWAY FROM PUBLIC CONTROL FEARING THAT THE CREATION OF AN ACCESS RIGHT WOULD CALL FOR AN UNUSUALLY INTRUSIVE JUDICIAL ROLE IN THE END MR SUNSTEIN MOSTLY CONTENTS HIMSELF WITH TRIMMING AND TIDYING THE EDGES OF FIRST AMENDMENT JURISPRUDENCE HE ARGUES FOR STRONGER LIBEL PROTECTION FOR CELEBRITIES ACCEPTS ONLY THE NARROWEST RESTRICTIONS ON HATE SPEECH AND PORNOGRAPHY SUGGESTS VOLUNTARY QUALITY GUIDELINES FOR NETWORK TV SUPPORTS THE CONSTITUTIONALITY OF CAMPAIGNFINANCE REFORMS ALL BUT THE HARDEST OF FIRST AMENDMENT HARDLINERS WILL BE COMFORTABLE WITH THE MAJORITY OF HIS POLICY PROPOSALS AND MANY WILL WELCOME THE CLARITY THAT HE BRINGS TO SUCH TRICKY LEGAL ISSUES AS HATE CRIMES AND ARTS FUNDING SO HIS BOOK ENDS UP IN THE LIMBO OF THE PC MODERATE ENDORSING RADICAL PRINCIPLES BUT FORSWEARING THOSE PRINCIPLES' RADICAL APPLICATIONS OTHERS COMING BEHIND HIM WON'T BE SO TAME MR RAUCH IS THE AUTHOR OF KINDLY INQUISITORS THE NEW ATTACKS ON FREE THOUGHT UNIVERSITY OF CHICAGO PRESS 9310130184 931013 ROHR INC MEDIUMTERM NOTES CHULA VISTA CALIF ROHR INC SAID IT PAID THE REMAINING 35 MILLION OUTSTANDING ON ITS MEDIUMTERM NOTES THE NOTES WHICH WERE PRINCIPALLY HELD BY BANKAMERICA CORP WERE SOLD THREE YEARS AGO FOR 50 MILLION THE MOVE REDUCES ROHR'S TOTAL FINANCINGS INCLUDING BALANCESHEET DEBT AND OFFBALANCESHEET FINANCING TO 638 MILLION THE COMPANY SAID ROHR MAKES AIRCRAFTENGINE HOUSINGS AND COMPONENTS 9310130183 931013 TECHNOLOGY & HEALTH CENTOCOR STOCK PRICE SOARS ON RESULTS OF HUMAN TESTS OF ANTICANCER DRUG BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CENTOCOR INC'S SHARE PRICE JUMPED 267 YESTERDAY AFTER THE BIOTECHNOLOGY COMPANY ANNOUNCED ENCOURAGING RESULTS IN AN INITIAL HUMAN TEST OF ITS PANOREX ANTICANCER TREATMENT CENTOCOR SAID A HUMAN TRIAL INVOLVING 166 PATIENTS WITH COLON CANCER FOUND THAT A GROUP OF PATIENTS GIVEN PANOREX HAD A 30 REDUCTION IN THEIR RATE OF DEATH COMPARED WITH PATIENTS NOT GIVEN THE TREATMENT CENTOCOR SAID THE RESULTS WERE REPORTED AT A CANCER RESEARCH MEETING IN GERMANY BY DR GERT RIETHMULLER OF THE UNIVERSITY OF MUNICH IN NATIONAL OVERTHECOUNTER TRADING CENTOCOR'S SHARES WERE BID UP 3 TO CLOSE AT 1425 ON HEAVY VOLUME OF 29 MILLION SHARES LAST MONTH THE MALVERN PA COMPANY SAID WELLCOME PLC OF BRITAIN PAID 185 MILLION FOR A 5 STAKE IN THE COMPANY TO ACQUIRE THE RIGHTS TO MARKET PANOREX IN CERTAIN MARKETS DAVID P HOLVECK CENTOCOR'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID WELLCOME ACQUIRED THE RIGHTS TO PANOREX AFTER SEEING THE GERMAN TEST RESULTS PANOREX ALSO REFERRED TO AS 171A IS A MONOCLONAL ANTIBODY THAT CAN HOME IN ON RECEPTORS ON THE OUTER SURFACE OF COLON CANCER CELLS IN TESTTUBE EXPERIMENTS ONCE THE ANTIBODY LATCHES ONTO THE RECEPTORS IT TRIGGERS THE ACTIVATION OF IMMUNE SYSTEM CELLS THAT ATTACK THE CANCER CELLS IN THE GERMAN TEST DOCTORS TREATED PATIENTS WITH ADVANCED STAGE C TYPE OF COLON CANCER IN WHICH THE TUMOR HAD INVADED NEARBY LYMPH NODES BUT HAD YET TO SPREAD TO OTHER ORGANS AFTER THE TUMOR WAS REMOVED ONE GROUP WAS TREATED WITH RADIATION AND ANOTHER GROUP WITH RADIATION AND PANOREX AFTER FIVE YEARS 51 OF PATIENTS NOT TREATED WITH PANOREX HAD DIED WHILE 36 OF TREATED PATIENTS DIED CENTOCOR HAS EXPERIENCED A ROCKY AND CONTROVERSIAL YEAR ITS SHARE PRICE PLUMMETED EARLIER THIS YEAR WHEN ITS CENTOXIN DRUG FOR TREATING SEVERE INFECTIONS FAILED TO GAIN GOVERNMENT APPROVAL CENTOCOR SAID IT WILL SEEK APPROVAL IN EUROPE FOR PANOREX BASED ON THE GERMAN TEST BUT IT MUST CONDUCT STUDIES IN THE US TO SEEK US MARKETING APPROVAL 9310130182 931013 CORRECTIONS & AMPLIFICATIONS TEXAS UTILITIES CO SAID IT HAD 10832 TEXAS EMPLOYEES AS OF MARCH 1 A TABLE IN LAST WEDNESDAY'S TEXAS JOURNAL USING DATA PROVIDED BY DUN & BRADSTREET CORP PLACED THE NUMBER AT 21525 SOUTHWESTERN BELL CORP SAID IT HAD 29898 TEXAS EMPLOYEES ON MARCH 1 NOT 16675 AS INDICATED IN THE TABLE 9310130181 931013 WHO'S NEWS BORLAND INTERNATIONAL INC BORLAND INTERNATIONAL INC SCOTT'S VALLEY CALIF STEPHEN J LEWIS 35 YEARS OLD A PARTNER WITH THE CONSULTING FIRM BOOZ ALLEN & HAMILTON INC WAS ELECTED A DIRECTOR OF THIS DATABASE SOFTWARE CONCERN HE SUCCEEDS STEPHEN DOW WHO RESIGNED RECENTLY CITING TIME CONSTRAINTS 9310130180 931013 WHO'S NEWS ONEITA INDUSTRIES INC ONEITA INDUSTRIES INC ANDREWS SC ROBERT M GINTEL 65 YEARS OLD WAS NAMED CHAIRMAN OF THIS APPAREL MAKER FOLLOWING HIS COMPANY'S ACQUISITION OF 25 OF ONEITA'S STOCK EARLIER THIS MONTH MR GINTEL SUCCEEDS HARVEY BLAU 57 WHO RESIGNED HIS BOARD SEAT AFTER GINTEL & CO PURCHASED 1750000 SHARES OF ONEITA FROM INSTRUMENT SYSTEMS CORP MR GINTEL IS ALSO CHAIRMAN OF XTRA CORP 9310130179 931013 WHO'S NEWS TANGER FACTORY OUTLET CENTERS INC TANGER FACTORY OUTLET CENTERS INC GREENSBORO NC SUSAN E ALLEN WAS NAMED CORPORATE DIRECTOR OF MARKETING FOR THIS OWNER AND OPERATOR OF 17 FACTORYOUTLET CENTERS AROUND THE US MS ALLEN 43 YEARS OLD HAD BEEN VICE PRESIDENT OF MARKETING FOR CABRAL REALTY A DEVELOPER OF FACTORYOUTLET CENTERS BASED IN NEW HAMPSHIRE SHE SUCCEEDS JANET GRADY 33 WHO LEFT THE COMPANY IN SEPTEMBER 9310130178 931013 LAW LEGAL BEAT DENNY DELIBERATIONS STALL AS JUDGE DISMISSES SECOND JUROR IN 2 DAYS BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES PROBLEMS IN THE JURY ROOM HAVE HEIGHTENED TENSIONS SURROUNDING THE TRIAL OF TWO BLACK MEN ACCUSED OF ATTEMPTING TO MURDER WHITE TRUCKER REGINALD DENNY AT THE START OF THE LOS ANGELES RIOTS IN THE LATEST TWIST INVOLVING THE JURY A JUDGE DISMISSED THE PANEL'S SOLE WHITE MALE MEMBER FOR PERSONAL REASONS THE DISMISSAL OF THE JUROR CAME JUST A DAY AFTER STATE COURT JUDGE JOHN W OUDERKIRK REMOVED A MIDDLEAGED BLACK WOMAN BECAUSE THE OTHER 11 JURORS AGREED SHE COULD NOT COMPREHEND ANYTHING THAT WE'VE BEEN TRYING TO ACCOMPLISH EACH TIME THE REJECTED JUROR WAS REPLACED BY ONE OF THE THREE ALTERNATES WHO HAD BEEN HELD IN RESERVE AND WHO HADN'T PARTICIPATED IN THE EARLIER EIGHT DAYS OF DELIBERATIONS EACH TIME THE JUDGE TOLD THE PANEL TO SCRAP THE PREVIOUS DELIBERATIONS AND START FROM SCRATCH THE DISMISSALS AND MOTIONS MADE BY THE DEFENDANTS' LAWYERS IN RESPONSE CAST DOUBT ON HOW WELL THE JURY DELIBERATION PROCESS IS WORKING IN THIS RACIALLY CHARGED CASE AND EXPERTS SAY IT ALSO RAISES LARGER MORE TROUBLING QUESTIONS ABOUT THE POSSIBILITY OF A MAJORITY OF JURORS ENGAGING IN BULLYING ANY DISSENTING OR HOLDOUT JURORS SOME EXPERTS SAID THE JUDGE'S ACTIONS COULD LEAD TO A MISTRIAL OR REVERSAL EDI MO FAAL REPRESENTING DAMIAN WILLIAMS THE DEFENDANT WHO FACES A DOUBLE LIFE TERM FOR ATTEMPTED PREMEDITATED MURDER AND AGGRAVATED MAYHEM ASKED THE COURT TO DISMISS A WHITE WOMAN AND WHITE MAN BOTH IN THEIR EARLY 30S FROM THE PANEL BUT BEFORE THE MOTION COULD BE ARGUED THE JUDGE SAID HE WAS IMMEDIATELY DISMISSING THE WHITE MAN BECAUSE OF A REQUEST THE MAN HIMSELF SENT THROUGH THE BAILIFF ASKING TO BE DISMISSED FOR PERSONAL REASONS THE JUROR WAS REPLACED BY ANOTHER ALTERNATE A BLACK MALE IN HIS LATE 40S THE JUROR DISMISSED THE DAY BEFORE WAS REPLACED BY AN ASIANAMERICAN WOMAN NONE OF THE JURORS HAVE BEEN IDENTIFIED BY NAME ONLY BY NUMBERS ASSIGNED WHEN THEY WERE IN THE BROADER JUROR POOL MR FAAL'S MOTION TO DISMISS THE WHITE FEMALE JUROR WILL BE HEARD TODAY BEFORE DELIBERATIONS PROCEED THE JURY REACHED TWO VERDICTS AS TO MR WILLIAMS'S CODEFENDANT HENRY KEITH WATSON FOR ALLEGED CRIMES AGAINST VICTIMS OTHER THAN MR DENNY AT THE REQUEST OF HIS LAWYER HOWEVER THE VERDICTS INVOLVING MR WATSON WERE SEALED AND VOIDED AND THE CURRENT JURY WAS INSTRUCTED TO START OVER LEGAL SCHOLARS ARE SPLIT ON THE PROPRIETY OF THE JUDGE'S RULINGS SOME SAY THE DECISION TO DISMISS THE BLACK WOMAN FROM THE PANEL MONDAY WHILE UNUSUAL IS NOT UNPRECEDENTED PHILLIP E JOHNSON A CRIMINAL LAW PRESSOR AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY'S LAW SCHOOL POINTED TO A 1991 COURT OF APPEALS CASE PEOPLE VS DEJURNETT WHICH WAS HANDED DOWN IN THE SAME APPELLATE DISTRICT IN WHICH THE DENNY CASE IS BEING TRIED MR JOHNSON SAID THE COURT IN THAT CASE FOUND ON THE BASIS OF SIMILAR FACTS THAT IF A JUROR CANNOT REASON WON'T FOLLOW INSTRUCTIONS AND IS FOUND TO BE INCOMPETENT BY THE OTHER JURORS THEN THE JUDGE CAN DISMISS THAT JUROR THE 2TO1 OPINION WAS ORDERED DEPUBLISHD UNDER A QUIRK OF CALIFORNIA LAW THAT ALLOWS THE STATE SUPREME COURT TO PREVENT FUTURE LITIGANTS FROM CITING AS PRECEDENT CASE LAW MADE IN SOME CONTROVERSIAL CASES THE DEJURNETT CASE SAYS IT DOESN'T MEAN THE JUROR HAS TO HAVE A HEART ATTACK MR JOHNSON SAID BUT THAT SHEER UNREASONABLENESS CAN BE THE BASIS FOR A FINDING OF GOOD CAUSE THE CALIFORNIA PENAL CODE ALLOWS THE JUDGE'S ACTION UPON GOOD CAUSE SHOWN TO THE COURT THAT THE JUROR IS FOUND TO BE UNABLE TO PERFORM HIS DUTY BUT OTHERS SUCH AS GEORGE KENDALL A CRIMINAL LAW SPECIALIST WITH THE NAACP LEGAL DEFENSE AND EDUCATIONAL FUND INC BELIEVE THE JUDGE'S ACTION WAS IMPROPER THE JUDGE'S ACTIONS CREATE A SUBSTANTIAL DANGER THAT HE WILL BE REVERSED ON APPEAL DEPENDING ON WHAT COURT TRANSCRIPTS REVEAL ABOUT HIS REASONING SOME LAWYERS SAY THE OBVIOUS DANGER MR KENDALL SAID IS THAT THE OTHER 11 JURORS HAVE DECIDED WHAT VERDICT SHOULD BE REACHED AND THE ONE HOLDOUT WITHDRAWS FROM THE OTHERS LISTENING WITHOUT TALKING HE ADDED DOESN'T MAKE A JUROR INCOMPETENT BASED ON NOTES AND OTHER QUESTIONS SENT FROM THE JURY ROOM THERE HAS BEEN SPECULATION OF PERSONALITY CONFLICTS AND OTHER BICKERING IN THE JURY ROOM WHICH SOME SAY MIGHT INDICATE AN INVALID BASIS FOR THE ULTIMATE DISMISSAL OF THE BLACK WOMAN JUROR MR FAAL THE DEFENSE ATTORNEY SAID THE JUDGE'S DECISION TO STRIKE THAT JUROR FOR INCOMPETENCE WAS SUCH AN ERROR THAT IT FORMS THE BASIS FOR A NEW TRIAL OR A MISTRIAL IT IS NOTABLE GIVEN THE RACIAL SPLIT THAT OFTEN ACCOMPANIES DISCUSSIONS OF THE DENNY CASE THAT THE JUROR WHO MOST VIGOROUSLY ATTACKED THE COMPETENCE OF THE DISMISSED BLACK WOMAN JUROR WAS ANOTHER BLACK WOMAN THE JURY FOREWOMAN THE CURRENT JURY MAKEUP IS TWO ASIANAMERICANS FOUR BLACKS TWO WHITES AND FOUR HISPANICS WITH ONE WHITE ALTERNATE REMAINING THE 2 1/2MONTH TRIAL OF MR WILLIAMS 20 YEARS OLD AND MR WATSON 29 HAS SPAWNED CHARGES OF DISCRIMINATORY PROSECUTION BY SOME IN THE BLACK COMMUNITY THE DEFENDANTS WERE INITIALLY CHARGED IN A 39COUNT INDICTMENT FOLLOWING MR WILLIAMS'S HIGHPROFILE MAY 14 1992 ARREST BY THENPOLICE CHIEF DARYL GATES THE INDICTMENT HAS SINCE BEEN PARED DOWN TO 12 CHARGES INVOLVING EIGHT VICTIMS POOR PEOPLE ARE MUCH LESS LIKELY THAN WEALTHIER PEOPLE TO SUE THEIR DOCTOR OR HOSPITAL FOR MEDICAL MALPRACTICE A NEW STUDY HAS FOUND THE FINDING REPORTED IN THE CURRENT ISSUE OF THE JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION FLIES IN THE FACE OF THE CONVENTIONAL WISDOM THAT DOCTORS PLACE THEMSELVES AT A GREATER RISK OF BEING SUED IF THEY TAKE ON POOR PATIENTS THE PERCEPTION OF SUCH A RISK SOMETIMES HAS MADE IT DIFFICULT FOR COMMUNITY HEALTH CENTERS TO RECRUIT PHYSICIANS BUT IN REALITY POOR PEOPLE INJURED BY MALPRACTICE ARE ONLY ABOUT 10 AS LIKELY TO SUE AS WEALTHIER PATIENTS WITH SIMILAR INJURIES ACCORDING TO THE STUDY THE STUDY WHICH USES 1984 DATA FROM A HARVARD UNIVERSITY PROJECT ON MEDICAL MALPRACTICE IN NEW YORK STATE DEFINED AS POOR ANYONE WITH A HOUSEHOLD INCOME BELOW THE POVERTY LEVEL OR 10610 IF PHYSICIANS ARE CHOOSING NOT TO CARE FOR POOR PATIENTS WE JUST DON'T WANT THEM TO BLAME IT ON THE FEAR OF LAWSUITS SAID HELEN BURSTIN A HARVARD MEDICAL SCHOOL PHYSICIAN WHO WAS ONE OF FOUR RESEARCHERS INVOLVED IN THE STUDY INSTEAD SHE SAID WE SHOULD CONCENTRATE ON THE REAL REASON THAT PEOPLE AREN'T SERVING THE POOR WHICH IS THAT THEY'RE NOT BEING REIMBURSED ADEQUATELY FOR IT THE RESULTS ARE SURPRISING FOR TWO REASONS FOR ONE THING EARLIER STUDIES HAVE SHOWN THAT POOR PATIENTS ARE SIGNIFICANTLY MORE LIKELY THAN OTHERS TO BE INJURED BY MEDICAL NEGLIGENCE IN ADDITION POOR PEOPLE FILE OTHER KINDS OF PERSONALINJURY SUITS MUCH MORE OFTEN THAN HIGHERINCOME PEOPLE SAID LESTER BRICKMAN A PROFESSOR AT CARDOZO LAW SCHOOL IN NEW YORK BUT HE SAID THEY OFTEN HAVE TROUBLE FINDING LAWYERS WILLING TO REPRESENT THEM ON MEDICALMALPRACTICE CLAIMS BECAUSE SUCH CASES ARE EXTREMELY EXPENSIVE TO LITIGATE A FEDERAL JURY IN MANHATTAN REJECTED GOVERNMENT CHARGES THAT TWO SECURITIESINDUSTRY EMPLOYEES HAD LIED AND OFFERED FORGED EVIDENCE AT A NATIONAL ASSOCIATION OF SECURITIES DEALERS ARBITRATION HEARING THE CASE HAD BEEN OF INTEREST AMONG BROKERAGE FIRMS BECAUSE IT WAS BELIEVED TO BE THE FIRST CRIMINAL PROSECUTION TO ARISE FROM A SECURITIES ARBITRATION ARBITRATIONS ARE REQUIRED OF ALMOST ALL CLIENTS WITH CLAIMS AGAINST BROKERS BUT IT HAS BEEN UNCLEAR WHETHER PARTICIPANTS COULD BE SUBJECT TO PROSECUTION FOR PERJURY THE DEFENDANTS CHARLES LEWIS 60 YEARS OLD A FORMER SHEARSON LEHMAN HUTTON BROKER AND EDWARD COYLE 36 A FORMER CONTROL ADMINISTRATOR IN SHEARSON'S MIDTOWN NEW YORK BRANCH WERE ACQUITTED ON EACH COUNT OF A FOURCOUNT INDICTMENT ALLEGING CONSPIRACY MAIL FRAUD AND BOOKSANDRECORDS VIOLATIONS MEMBERS OF THE JURY OF FIVE MEN AND SEVEN WOMEN SAID IN POSTTRIAL INTERVIEWS THAT THE PROSECUTION HAD NOT PROVIDED ENOUGH EVIDENCE OF A MOTIVE FOR THE ALLEGED CRIME SCOTT EDELMAN THE ASSISTANT US ATTORNEY PROSECUTING THE CASE SAID THE GOVERNMENT WILL CONTINUE TO PROSECUTE FRAUDS WHEN THEY ARE COMMITTED DURING THE ARBITRATION PROCESS EDWARD FELSENTHAL IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9310130177 931013 ENTERPRISE FAST TRACK MAIL BOXES ETC DELIVERS PROFITS BUT NOT TO EVERYONE EXPLODING CHAIN IS HOME TO FAXES OFFICE SUPPLIES AND A FRANCHISEE LAWSUIT BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL NEITHER SNOW NOR RAIN NOR SCORNFUL VENTURE CAPITALISTS COULD STAY MAIL BOXES ETC FROM ITS PURSUIT OF FRANCHISEES OUTSIDE THE FASTFOOD INDUSTRY FEW CHAINS HAVE EXPANDED SO RAPIDLY AFTER ONLY 11 YEARS IN FRANCHISING MAIL BOXES SAYS IT DOTS THE BUSINESS LANDSCAPE WITH MORE THAN 2100 UNITS INCLUDING MORE THAN 130 OUTSIDE THE US CURRENTLY AVERAGING ONE OPENING A DAY THE COMPANY AIMS TO TOP 5000 UNITS BY THE END OF THE DECADE MAIL BOXES HASN'T ESCAPED GROWING PAINS THIS MONTH A SMALL GROUP OF FRANCHISEES FILED A LAWSUIT ACCUSING IT OF MAKING DECEPTIVE CLAIMS TO SELL FRANCHISES THE COMPANY SHRUGS OFF THE SUIT SAYING THE REASON FOR ITS SUCCESS IS ITS VISION MAIL BOXES HAS GROWN FAST AND ATTRACTED FRANCHISE BUYERS LARGELY BECAUSE IT HAS IDENTIFIED A WIDE AND CONSTANTLY GROWING RANGE OF PACKAGING AND COMMUNICATIONS SERVICES THAT IT CAN SELL TO THE SAME MARKET PEOPLE DON'T HAVE TIME TO DO ALL THE THINGS THEY WANT TO DO SAYS KENNETH A GORDON AN AREA DEVELOPER WHO ACTS AS A GOBETWEEN FOR MAIL BOXES AND ITS FRANCHISEES WE'RE A CONVENIENCE CENTER WHOSE TIME HAS COME IN THE BEGINNING THE CHAIN OFFERED MAIL SERVICES SUCH AS 24HOUR POSTAL BOXES STILL ITS CORE BUSINESS NOW THE SEGMENT SIGNIFIED BY ETC IS BLOSSOMING IN MANY DIRECTIONS ELECTRONIC TAX FILING AIRLINE TICKETS COPIER AND FAX AND TELEX SERVICES MONEY ORDERS PASSPORT PHOTOGRAPHS OFFICE SUPPLIES AND MORE THE STORES EVEN SERVE AS DROPOFF POINTS FOR BROKEN PRODUCTS NEEDING WARRANTY WORK JIM SLEEPER WHO IS BOTH THE CARMEL CALIF FRANCHISEE AND AN AREA DEVELOPER FOR MAIL BOXES SAYS THE BROAD RANGE OF SERVICES GIVES FRANCHISEES FLEXIBILITY MY STORE CONCENTRATES ON PACKING AND SHIPPING HE SAYS ANOTHER MIGHT CONCENTRATE ON COPYING AND WORD PROCESSING YOU CAN CONCENTRATE ON WHAT YOU DO BEST WITH GROWING NUMBERS OF FRANCHISEES TO PAY IT FEES AND ROYALTIES MAIL BOXES HAS BEEN REPORTING SURGING REVENUE AND EARNINGS FOR ITSELF AND MAIL BOXES SAYS ITS FRANCHISEES ENJOY A GROWING NUMBER OF WAYS TO MAKE MONEY WITHOUT INCREASING THEIR OVERHEAD THERE'S CONTROVERSY ABOUT THAT CLAIM THOUGH SOME FRANCHISEES CONTEND THAT THE NEWER SERVICES ARE LOWPROFIT NUISANCES THEY JUST DILUTE YOUR ABILITY TO PROVIDE THE ORIGINAL SERVICES SAYS MELANIE HELM WHO OWNED A NOWDEFUNCT MAIL BOXES FRANCHISE IN CASSELBERRY FLA STARTED ON A SHOESTRING IN 1980 MAIL BOXES SET OUT TO WIN CUSTOMERS FOR PRIVATE POSTAL BOXES THE COMPANY BEGAN WITH ONLY THREE OUTLETS WHICH IT OPERATED ITSELF IT WANTED TO EXPAND BUT VENTURE CAPITALISTS LAUGHED US OUT OF THE OFFICE RECALLS ANTHONY W DESIO PRESIDENT OF MAIL BOXES HE SAYS THEY DIDN'T UNDERSTAND THAT THE US POSTAL SERVICE WAS VULNERABLE TO COMPETITION ON POSTAL BOXES THEN IN SHORT SUPPLY NOR DID THEY SEE HOW POSTAL BOXES MIGHT BECOME THE BASE FOR A BROADER RANGE OF SERVICES AIMED MOSTLY AT SMALL BUSINESSES AND PEOPLE WHO WORK AT HOME SO THE COMPANY TURNED TO FRANCHISING IN 1982 AND HAS FAR OUTPACED RIVALS IN ITS FIELD FRANCHISEES ARE INDEPENDENT BUSINESS OWNERS WHO PAY FEES AND ROYALTIES IN EXCHANGE FOR RIGHTS TO USE A BUSINESS FORMAT CURRENTLY IT COSTS BETWEEN 85000 AND 100000 TO OPEN A FRANCHISE MAIL BOXES SAYS THE COMPANY ALSO SAYS IT IS SEEKING FRANCHISEES IN 22 FOREIGN COUNTRIES IN SEPTEMBER IT OPENED ITS FIRST OUTLETS IN BRAZIL AND AUSTRALIA INTERNATIONAL BUSINESS IS GOING GANGBUSTERS MR DESIO SAYS MOVES TO DISMANTLE POSTAL MONOPOLIES ARE MORE PRONOUNCED IN MANY OTHER COUNTRIES THAN IN THE US BACK IN THE US MAIL BOXES KEEPS LOOKING TO OFFER MORE SERVICES THE COMPANY PLANS TO TEST MARKET ITS NEW ELECTRONIC TICKETDELIVERY SYSTEM IN LOS ANGELES AND ORANGE COUNTIES IN CALIFORNIA MANY TRAVELERS WHO PAY FOR AIRLINE TICKETS WITH A CREDIT CARD WILL HAVE THE OPTION OF PICKING UP THEIR TICKETS AT ANY OF 119 MAIL BOX OUTLETS IN THE REGION THOUGH MR DESIO SAYS THE VAST MAJORITY OF FRANCHISEES MAKE MONEY AFTER A YEAR OR TWO DISSIDENT FRANCHISEES CLAIM THAT MANY FRANCHISES NEVER TURN A PROFIT SOME ACCUSE THE FRANCHISER OF MISLEADING THEM LAST YEAR A VIRGINIA FRANCHISEE NAMED MARY ANNA SEVERSON COMPLAINED ABOUT MAIL BOXES AT A CONGRESSIONAL FORUM IN WASHINGTON IN A LAWSUIT FILED THIS MONTH IN SAN DIEGO COUNTY SUPERIOR COURT MS SEVERSON'S HUSBAND AND EIGHT OTHER CURRENT OR FORMER FRANCHISEES INCLUDING MRS HELM IN FLORIDA ACCUSE MAIL BOXES OF FRAUDULENTLY INDUCING FRANCHISE SALES IN PART BY EXAGGERATING THE FRANCHISEE SUCCESS RATE AND UNDERSTATING STARTUP COSTS THE PLAINTIFFS CONTEND THAT MORE THAN ONETHIRD OF THE NEARLY 800 OUTLETS THAT EXISTED IN EARLY 1989 HAD CHANGED OWNERS BY LAST FALL WHEN YOU RESELL AFTER A SHORT PERIOD OF TIME THAT'S TANTAMOUNT TO A BUSINESS FAILURE SAYS MARIO L HERMAN A WASHINGTON DC LAWYER WHO HELPED DEVELOP THE SUIT YOU DON'T GO INTO ONE OF THESE FRANCHISES IN ORDER TO SELL OUT IN A COUPLE OF YEARS MR DESIO HOWEVER SAYS IT IS RIDICULOUS TO ASSUME THAT RESOLD UNITS ARE GENERALLY FAILURES MRS HELM WHO SHUT HER UNIT AFTER MORE THAN THREE YEARS SAYS POTENTIAL CUSTOMERS FAVORED A UNITED PARCEL SERVICE OUTLET ONLY ONE MILE AWAY MRS HELM SAYS SHE NEVER DREW A SALARY FROM HER FRANCHISE SHE SAYS SHE HAD A LOSS OF 350000 IN BUYING AND RUNNING THE BUSINESS NOW HER LEGAL BILL FOR FIGHTING MAIL BOXES STANDS AT 50000 AND MOUNTING SHE ADDS MRS HELM BLAMES MAIL BOXES SAYING THE COMPANY FAILED TO PROVIDE HER WITH A BUSINESS FORMAT CAPABLE OF PRODUCING SUFFICIENT SALES BUT MR GORDON THE AREA DEVELOPER FOR CENTRAL FLORIDA SAYS MRS HELM SEEMED DISTRACTED AND FAILED TO PUT IN ENOUGH TIME AT HER STORE 9310130176 931013 CROWN AMERICAN TO EXPAND MALL JOHNSTOWN PA CROWN AMERICAN REALTY TRUST SAID IT WILL BEGIN A 28 MILLION EXPANSION OF ITS VIEWMONT MALL IN SCRANTON PA NEXT WEEK THE COMPANY SAID THE EXPANSION IS EXPECTED TO BE COMPLETED WITHIN TWO YEARS THE PROJECT INVOLVES RELOCATING A DEPARTMENT STORE TO A 120000SQUAREFOOT AREA AND CONVERTING THE EXISTING STORE INTO SPACE FOR ADDITIONAL SMALL SHOPS 9310130175 931013 TULTEX'S 225 MILLION CREDIT LINE MARTINSVILLE VA TULTEX CORP SAID IT CLOSED A TWOYEAR 225 MILLION REVOLVINGCREDIT FACILITY THE FACILITY'S AGENT IS NATIONSBANK CORP FIRST UNION CORP AND CORESTATES FINANCIAL CORP ARE COAGENTS IN A NEWS RELEASE THE MAKER OF SPORTSWEAR AND YARN SAID THE FACILITY REPLACES PREVIOUS SHORTTERM CREDIT LINES TO SUPPORT WORKING CAPITAL AND GROWTH THE FACILITY PROVIDES FOR A TWOYEAR MATURITY WITH THREE ANNUAL OPTIONS TO RENEW THE COMPANY ADDED 9310130174 931013 BEYOND WASHINGTON MIDDLE AMERICA IN CLINTON'S FIRST YEAR POLITICS & POLICY PARENTS ARE SKEPTICAL OF WASHINGTON'S ABILITY TO UPGRADE THE NATION'S EDUCATIONAL SYSTEM BY DENNIS FARNEY STAFF REPORTER OF THE WALL STREET JOURNAL ARLINGTON HEIGHTS ILL WHEN JOHN AND AMY WELZENBACH THINK ABOUT MAKING SCHOOLS BETTER THE LAST PLACE THEY LOOK FOR HELP IS WASHINGTON WHAT'S IMPORTANT TO ME IS OUR PARENTTEACHER CONFERENCE NEXT WEEK SAYS JOHN PARENTAL INVOLVEMENT IS JUST VITAL AGREES AMY A VOLUNTEER PICTURE MOM WHO TEACHES ART APPRECIATION AT NEARBY WESTGATE ELEMENTARY SCHOOL SO THE WELZENBACHS PARENTS OF THIRDGRADE BECKY AND FIRSTGRADE BEN WON'T BE GLUED TO CSPAN WHEN THE HOUSE TAKES UP GOALS 2000 A HIGHPRIORITY CLINTON EDUCATION MEASURE TENTATIVELY SCHEDULED FOR A VOTE THIS WEEK FEW THINGS BETTER ILLUSTRATE THE GAP BETWEEN TWO CULTURES THE CULTURE OF POLITICAL WASHINGTON AND THE CULTURE OF MIDDLE AMERICA THAN THE CONTRAST BETWEEN THE WAY THEY VIEW THIS LEGISLATION AND THE WAY IT IS VIEWED BY FOES AND FRIENDS IN THE HOUSE GOALS 2000 WARNS CONSERVATIVE REPUBLICAN REP DICK ARMEY OF TEXAS EFFECTIVELY ENDS 350 YEARS OF LOCAL EDUCATIONAL LIBERTY IN AMERICA GOALS 2000 COUNTERS LIBERAL DEMOCRAT REP JACK REED OF RHODE ISLAND IS A CATALYST FOR FUNDAMENTAL CHANGE GOALS 2000 SUSPECTS MR WELZENBACH IS CUT FROM THE SAME CLOTH AS THE THOUSAND POINTS OF LIGHT THAT GEORGE BUSH USED TO RATTLE ON ABOUT I REALLY COULD CARE LESS HE SAYS IN REALITY THIS LEGISLATION ALTHOUGH LESS IMPORTANT THAN WASHINGTON PRETENDS IS MORE IMPORTANT THAN THE WELZENBACHS BELIEVE IT'S BEEN SEVEN YEARS IN THE MAKING INCUBATED BY THE BIPARTISAN NATIONAL GOVERNORS ASSOCIATION INITIALLY PROPOSED BY PRESIDENT BUSH AND NOW IN BROADLY SIMILAR OUTLINES BY PRESIDENT CLINTON FOR THE FIRST TIME IN US EDUCATIONAL HISTORY IT WOULD HAVE WASHINGTON DIRECTLY SET ACADEMIC STANDARDS ALBEIT VOLUNTARY ONES FOR WHAT BECKY AND BEN SHOULD KNOW BUT GOALS 2000 IS AS MUCH ABOUT BUILDING NATIONAL CONSENSUS AS SETTING NATIONAL STANDARDS THE REPUBLICAN AND DEMOCRATIC GOVERNORS WHO LAUNCHED IT INCLUDING THENGOV BILL CLINTON ENVISIONED A PROCESS TRANSCENDING PARTISAN POLITICS AS USUAL IT HASN'T WORKED THAT WAY IN THE HOUSE SO FAR AND THAT IN MICROCOSM REPRESENTS EXACTLY WHAT MIDDLE AMERICA THINKS IS WRONG WITH WASHINGTON MIDDLE AMERICA THINKS IN TERMS OF PROBLEMS TO BE SOLVED POLITICAL WASHINGTON THINKS IN TERMS OF ISSUES TO BE SHARPENED IN THE HOUSE EDUCATION AND LABOR COMMITTEE A BASTION OF OLDLINE LIBERALISM GOALS 2000 GOT CAUGHT IN A WAR BETWEEN LYNDON JOHNSON LIBERALS AND RONALD REAGAN CONSERVATIVES LIBERAL DEMOCRATS EFFECTIVELY REMOVED A BIPARTISAN NATIONAL GOALS PANEL CREATED BY THE GOVERNORS IN A BUSH ADMINISTRATION EDUCATION SUMMIT THREE YEARS AGO FROM THE GOALSAPPROVAL PROCESS THE ORIGINAL FOCUS OF THE BILL HIGHER ACADEMIC STANDARDS FOR PUPILS BECAME BLURRED WITH THE APPROVAL OF A REED AMENDMENT AIMED AT PUTTING MORE MONEY INTO SUBSTANDARD SCHOOLS MEANWHILE GOP CONSERVATIVES LED BY REP ARMEY DENOUNCED THE WHOLE MEASURE AND SERVED NOTICE THEY'LL PUSH FOR A SUBSTITUTE EMPHASIZING SCHOOL CHOICE THE MEASURE CLEARED THE COMMITTEE ON A PARTYLINE VOTE IN RECENT DAYS COMMITTEE CHAIRMAN WILLIAM D FORD OF MICHIGAN AGREED TO A PACKAGE OF AMENDMENTS TO BE OFFERED ON THE HOUSE FLOOR THAT MODERATE THE ORIGINAL LIBERAL AMENDMENTS BUT CHAIRMAN FORD ACTED ONLY AFTER PROTESTS FROM PRESIDENT CLINTON EDUCATION SECRETARY RICHARD RILEY THE NATIONAL GOVERNORS ASSOCIATION CONSERVATIVE DEMOCRATS AND MODERATE REPUBLICANS THE TORTUOUS PROCESS ILLUSTRATES HOW DIFFICULT IT WILL BE FOR MR CLINTON TO PUSH THROUGH NONIDEOLOGICAL MEASURES THAT WOULD STAMP HIM AS A NEW DEMOCRAT AND APPEAL TO PRACTICALMINDED VOTERS LIKE MR AND MRS WELZENBACH THE WELZENBACHS ARE THE KIND OF CONCERNED PARENTS THAT EDUCATION REFORMERS DREAM ABOUT THEY OVERSEE THEIR CHILDREN'S HOMEWORK ACTIVELY PARTICIPATE IN THE PTA AND AS MRS WELZENBACH PUTS IT WHEN THE BOND REFERENDUM COMES UP WE'RE THE ONES WHO VOTE YES POLITICALLY THEY'RE THE KIND OF VOTERS THAT BOTH PARTIES COVET BOTH VOTED FOR ROSS PEROT LAST YEAR TODAY MR WELZENBACH PROBABLY WOULD SWITCH TO GEORGE BUSH AND MRS WELZENBACH TO BILL CLINTON THE WELZENBACHS ARE SKEPTICAL OF BOTH CLASSIC LIBERAL AND CLASSIC CONSERVATIVE NOTIONS ABOUT EDUCATIONAL REFORM THEY DOUBT THAT MORE MONEY IS THE ANSWER NOR ARE THEY ENTHUSIASTIC ABOUT THE CONSERVATIVE SOLUTION OF SCHOOL CHOICE WHICH BACKERS SAY WOULD STIMULATE COMPETITION BETWEEN SCHOOLS BY GIVING PARENTS EDUCATIONAL VOUCHERS THEY COULD TAKE TO THE SCHOOL OF THEIR CHOICE COMPETITION IS GREAT IN BUSINESS BUT I DON'T KNOW IF IT HAS ANY PLACE IN THE SCHOOL SYSTEM SAYS MR WELZENBACH A PROFESSIONAL PHOTOGRAPHER WHAT THESE PARENTS DO LIKE IS THE IDEA OF SETTING HIGHER ACADEMIC STANDARDS FOR PUPILS STANDARDS HAVE A MUCH MORE LASTING EFFECT THAN COMPUTERS WITH COLOR MONITORS SAYS MRS WELZENBACH HIGHER STANDARDS OF COURSE WERE THE INTENDED FOCUS OF GOALS 2000 BUT A FOCUS THAT GOT MUDDIEDUP IN THE PARTISAN MANEUVERING THAT GREETED THE BILL IN THE EDUCATION AND LABOR COMMITTEE GOALS 2000 WAS ALREADY CARRYING HEAVY BAGGAGE WHEN IT ARRIVED PRESIDENT BUSH'S VERSION MORE HEAVILY WEIGHTED TOWARD SCHOOL CHOICE DIED AMID PARTISAN WRANGLING DURING THE PREVIOUS CONGRESS EDUCATION AND LABOR DEMOCRATS HAVING SPENT 12 LONG YEARS RESISTING REAGAN AND BUSH INITIATIVES WERE FLEXING THEIR MUSCLES THE DEMOCRATS CERTAINLY WERE EAGER TO WORK WITH THEIR NEW PRESIDENT BUT ON RETOOLING MORE EXPENSIVE EXISTING EDUCATIONAL PROGRAMS RATHER THAN PASSING THIS NEW MEASURE WHICH HAD BEEN DEVELOPED LARGELY WITHOUT THEM WHY SOME WONDERED PRIVATELY WAS PRESIDENT CLINTON SO KEEN ON PASSING A BUSH BILL SAYS CHAIRMAN FORD THERE ARE A NUMBER OF DEMOCRATS ON THIS COMMITTEE WHO NEVER LIKED THIS BILL SIMULTANEOUSLY HOUSE REPUBLICANS WERE TAKING A HARD PARTISAN LINE AGAINST PRESIDENT CLINTON'S DEFICITREDUCTION MEASURE THE FALLOUT HIT THIS BILL AS WELL DON'T ASK ME TO EXPLAIN WHY REPUBLICANS HAVE BEEN ACTING LIKE FOOLS ALL YEAR AND VOTING AGAINST ANYTHING WITH CLINTON'S NAME ON IT GRUMBLES MR FORD THERE'S NOT A DIME'S WORTH OF DIFFERENCE BETWEEN THIS BILL AND THE OLD BUSH BILL AS THE CHAIRMAN SEES IT IN TRYING TO ACCOMMODATE DEMOCRATS LIKE REP REED AND HAWAII REP PATSY MINK HE LOST THE SUPPORT OF MODERATE REPUBLICANS LIKE REP BILL GOODLING OF PENNSYLVANIA MR GOODLING OFTEN A BROKER BETWEEN COMMITTEE CONSERVATIVES AND LIBERALS FOUND HIMSELF IN DISAGREEMENT WITH BOTH A DISSENTING STATEMENT HE SIGNED ARGUED FOR THE BALANCED VERSION PUT FORWARD BY PRESIDENT CLINTON AND SECRETARY RILEY NOW WITH THE PACKAGE OF COMPROMISE AMENDMENTS THE CLINTON ADMINISTRATION HAS A CHANCE TO WRENCH THE MEASURE BACK TOWARD THE MIDDLE OF THE ROAD THE COMPARABLE SENATE VERSION HAS BEEN LESS CONTROVERSIAL AND MORE MODERATE FROM THE BEGINNING AMONG OTHER CHANGES THE PACKAGE WOULD GIVE THE BIPARTISAN GOALS PANEL AT LEAST A VETO OVER PROPOSED NEW STANDARDS THE PACKAGE ALSO WATERS DOWN REP REED'S OPPORTUNITY TO LEARN AMENDMENT WHICH REPUBLICANS OF ALL STRIPES FEAR WILL LEAD TO YET ANOTHER FEDERAL CHECKLIST COVERING EVERYTHING FROM GENDER EQUITY TO RESOURCES IN THE CLASSROOM BUT THE BITTER TASTE OF IDEOLOGICAL RANCOR REMAINS REP ARMEY REMAINS DETERMINED TO OFFER HIS SUBSTITUTE WHICH HE SAYS AT LEAST HAS THE VIRTUE OF DOING THE WRONG THING IN THE LEASTWORST WAY REP REED REMAINS DETERMINED TO PUSH FOR THE GUTS OF HIS AMENDMENT WHICH HE SAYS WOULD COMPEL STATES TO FIX FAILING SCHOOLS THE CHOICE HE SAYS IS BETWEEN A MEANINGLESS ERA OF GOOD FEELING AND REFORM WITH TEETH AND MR AND MRS WELZENBACH REMAIN ON THE SIDELINES WONDERING WHAT IF ANYTHING IS BEING ACCOMPLISHED BY IT ALL IT SEEMS LIKE THERE'S A LOT OF MONEY SPENT ON STARTING THINGS AND NOT FINISHING THEM CONCLUDES MRS WELZENBACH IT SEEMS LIKE THESE PROGRAMS JUST FLOAT AWAY FOR THE FIRST TIME SET VOLUNTARY NATIONAL ACADEMIC STANDARDS FOR ELEMENTARY AND HIGH SCHOOL PUPILS AUTHORIZE A FIVEYEAR EFFORT WITH 393 MILLION IN FISCAL 1994 FOR FEDERAL GRANTS TO SPUR SYSTEMIC STATE EDUCATION REFORM UPGRADE TEACHERS' TRAINING AIM TO MAKE US PUPILS FIRST IN THE WORLD IN MATH AN SCIENCE BY THE YEAR 2000 9310130173 931013 WAINOCO OIL CORP HOUSTON WAINOCO OIL CORP SAID IT PARTICIPATED IN THE DISCOVERY OF A NEW GAS FIELD IN SOUTHERN ALBERTA CANADA THE COMPANY SAID THAT TO DATE THREE WELLS HAVE BEEN COMPLETED IN THIS FIELD WHICH TESTED AT AN AGGREGATE RATE OF 10 MILLION CUBIC FEET A DAY THE PRODUCTIVE HORIZON IS AT A DEPTH OF ABOUT 2500 FEET A FOURTH WELL IS PLANNED TO BE DRILLED IN THE CURRENT QUARTER THE COMPANY SAID WAINOCO HAS A WORKING INTEREST OF 40 IN THE FIELD AND IN THE SURROUNDING ACREAGE PRODUCTION IS EXPECTED TO BEGIN IN FEBRUARY 9310130172 931013 HYPERMEDIA MACROMEDIA PACT SAN MATEO CALIF HYPERMEDIA COMMUNICATIONS INC AND MACROMEDIA SAID THEY SIGNED A LETTER OF INTENT TO DEVELOP A BOOK SERIES SUPPORTING MACROMEDIA'S MACROMEDIA PROFESSIONAL LIBRARY SOFTWARE THE COMPANIES SAID THE BOOKS WOULD BE PUBLISHED UNDER AN IMPRINT JOINTLY ESTABLISHED BY HYPERMEDIA AND RANDOM HOUSE INC NO TERMS WERE DISCLOSED THE FIRST BOOKS ARE SLATED FOR RELEASE SOMETIME NEXT YEAR THE COMPANIES SAID SAN FRANCISCOBASED MACROMEDIA SPECIALIZES IN MULTIMEDIA SOFTWARE FOR MACINTOSH AND WINDOWS PLATFORMS 9310130171 931013 CHAPARRAL RESOURCES' GAS WELL DENVER CHAPARRAL RESOURCES INC COMPLETED A NATURAL GAS WELL 65 MILES NORTH OF GRAND JUNCTION IN RIO BLANCO COUNTY WESTERN COLORADO IN A NEWS RELEASE THE COMPANY SAID IT IS THE SECOND WELL COMPLETED THIS WEEK IN A FOURWELL SOUTH DOUGLAS CREEK FIELD DEVELOPMENT DRILLING PROGRAM CHAPARRAL SAID GAS SALES ARE EXPECTED TO START BY NOV 1 CHAPARRAL IS THE OPERATOR OF THE 11000ACRE FIELD AND HAS A 15 WORKING INTEREST IN THE FOUR WELLS GREAT NORTHERN GAS CO OWNS 55 AND THREE PRIVATELY HELD COMPANIES EACH OWN 10 9310130170 931012 BUSINESS BRIEF ALZA CORP PHARMACEUTICAL FIRM CLEARED TO SELL MALE HORMONE PATCH ALZA CORP SAID REGULATORS CLEARED THE COMPANY TO BEGIN SELLING ITS MALE HORMONE PATCH IN THE US ALZA SPECIALIZES IN MAKING SKIN PATCHES THAT DELIVER DRUGS SUCH AS MOTIONSICKNESS MEDICINE AND NICOTINE FOR PEOPLE TRYING TO QUIT SMOKING ALZA SAID THE MALE HORMONE PATCH WILL BE USED TO TREAT PATIENTS WITH AN ABSENCE OR DEFICIENCY OF TESTOSTERONE THE PALO ALTO CALIF PHARMACEUTICAL COMPANY SAID IT EXPECTS TO BEGIN SELLING THE PRODUCT IN THE US IN EARLY 1994 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY ALZA CLOSED AT 22625 UP 150 9310130169 931013 TECHNOLOGY US NEWS MAGAZINE ANNOUNCES PLAN TO GO ON COMPUSERVE LINE A WALL STREET JOURNAL NEWS ROUNDUP US NEWS & WORLD REPORT ANNOUNCED PLANS TO BECOME THE THIRD NEWSWEEKLY TO GO ELECTRONIC THE MAGAZINE SAID AN ABBREVIATED VERSION OF US NEWS WILL BE AVAILABLE ON THE COMPUSERVE INFORMATION SERVICE A COLUMBUS OHIO UNIT OF H&R BLOCK INC BY YEAR'S END US NEWS ONLINE WILL INCLUDE SELECTED FEATURES FROM THE WEEKLY MAGAZINE INCLUDING ITS NEWS YOU CAN USE SECTION ALL OF WHICH WILL BE AVAILABLE TO COMPUSERVE MEMBERS STARTING THE WEEKEND BEFORE THE MAGAZINE REACHES SUBSCRIBERS A SPOKESMAN FOR US NEWS WHICH IS OWNED BY MORTIMER ZUCKERMAN SAID THE ELECTRONIC VERSION ALSO WILL PROVIDE GRAPHS AND PHOTOGRAPHS FROM THE MAGAZINE AND READERS WILL BE ABLE TO POST LETTERS TO THE EDITOR THEY WANT PUBLISHED AND TO ORDER SUBSCRIPTIONS USERS OF THE SERVICE ALSO WILL BE ABLE TO PARTICIPATE IN OCCASIONAL ELECTRONIC FORUMS ON TOPICS SUCH AS SCIENCE AND POLITICS WITH WRITERS AND EDITORS THE ANNOUNCEMENT COMES AFTER TIME MAGAZINE AND NEWSWEEK HAVE ALREADY INTRODUCED ELECTRONIC PRODUCTS TIME STARTED OFFERING THE FULL TEXT OF ITS MAGAZINE SEPT 12 THROUGH AMERICA ONLINE INC ANOTHER INFORMATION SERVICE AVAILABLE TO PERSONAL COMPUTERUSERS AND A SPOKESMAN SAYS THAT SO FAR 180000 PEOPLE HAVE LOGGED IN AND PERUSED THE ELECTRONIC TIME IN FACT AMERICA ONLINE NOW OFFERS ELECTRONIC VERSIONS OF AT LEAST HALF A DOZEN MAGAZINES INCLUDING CONSUMER REPORTS NATIONAL GEOGRAPHIC PC WORLD AND THE NEW REPUBLIC NEWSWEEK IS TAKING A DIFFERENT TACK PUTTING OUT CDROM MULTIMEDIA DISKS QUARTERLY EACH DISK HOLDS TWO OR THREE INDEPTH STORIES FEATURING LOTS OF AUDIO AND VIDEO THAT AREN'T TAKEN DIRECTLY FROM MAGAZINE STORIES BUT PREPARED ESPECIALLY FOR THE ELECTRONIC FORMAT STORIES ON THE MOST RECENT DISK OUT LAST MONTH ARE THE BUSINESS OF BASEBALL AND MENDING THE EARTH THE DISKS ALSO HOLD THE TEXT ONLY FOR THREE MONTHS OF BACK ISSUES OF NEWSWEEK A SPOKESWOMAN DECLINED TO PROVIDE SPECIFICS BUT SAID SALES ARE GOOD 9310130168 931013 U S WEST TO SELL UNIT ENGLEWOOD COLO U S WEST INC SAID IT WILL SELL ITS U S WEST PAGING UNIT TO WESTLINK CO A SAN DIEGOBASED COMPANY HEADED BY A FORMER U S WEST EXECUTIVE AND THAT WAS FORMED FOR THE PURPOSE OF THE ACQUISITION TERMS WEREN'T DISCLOSED U S WEST SAID THIS SALE WILL ALLOW IT TO PLACE MORE EMPHASIS ON TWOWAY VOICE AND DATA TECHNOLOGIES INCLUDING CELLULAR AND PERSONAL COMMUNICATIONS SERVICES U S WEST PAGING HAD 1992 REVENUE OF 471 MILLION THE TRANSACTION IS EXPECTED TO CLOSE IN THE 1994 SECOND QUARTER 9310130167 931013 FIRST OF AMERICA ACQUISITION KALAMAZOO MICH FIRST OF AMERICA BANK CORP SAID IT AGREED TO ACQUIRE LGF BANCORP INC IN A STOCK SWAP VALUED AT 67 MILLION LGF WHOSE MAIN UNIT IS LAGRANGE FEDERAL SAVINGS & LOAN ASSOCIATION IS BASED IN LAGRANGE ILL LGF SHAREHOLDERS WILL RECEIVE 08754 SHARE OF FIRST OF AMERICA COMMON STOCK FOR EACH LGF SHARE THEY OWN THE TRANSACTION VALUES LGF AT 36 A SHARE BASED ON FIRST OF AMERICA'S RECENT STOCK PRICE 9310130166 931013 SL SHAREHOLDER DROPS PROPOSAL MOUNT LAUREL NJ SL INDUSTRIES INC AND STEEL PARTNERS LP SAID STEEL PARTNERS AGREED TO WITHDRAW ITS SHAREHOLDER PROPOSAL RECOMMENDING THAT SL'S BOARD SELL MERGE OR LIQUIDATE THE COMPANY THE MOVE FOLLOWS SL'S RECENT ANNOUNCEMENT THAT IT WOULD EXPLORE OPTIONS TO ENHANCE SHAREHOLDER VALUE STEEL PARTNERS WHICH SAYS ITS OWNS ABOUT 45 OF SL STOCK SAID IT RESERVED THE RIGHT TO RESUBMIT THE PROPOSAL NEXT YEAR 9310130165 931013 WHO'S NEWS FLEMING COS FLEMING COS OKLAHOMA CITY THOMAS L ZARICKI FORMER PRESIDENT OF A REGIONAL SUPERMARKET CHAIN BASED IN PHOENIX WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT RETAIL OPERATIONS AT THIS WHOLESALE FOOD DISTRIBUTOR 9310130164 931013 TECHNOLOGY & HEALTH MAJOR INDICATOR FOR CHIP INDUSTRY SANK IN SEPTEMBER BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL COMPUTERCHIP MAKERS' KEY ECONOMIC INDICATOR FELL IN SEPTEMBER TO ITS LOWEST LEVEL IN ALMOST TWO YEARS ADDING TO THE CURRENT ROUND OF JITTERS ABOUT SEMICONDUCTOR STOCKS THE SEMICONDUCTOR INDUSTRY ASSOCIATION BASED IN SAN JOSE CALIF SAID ITS BOOKTOBILL RATIO FELL TO 101 FROM A REVISED 108 IN AUGUST THAT'S THE STEEPEST DROP THIS YEAR AND WELL BELOW WHAT MANY ANALYSTS EXPECTED THE RATIO MEANS THAT FOR EVERY 100 OF CHIPS SHIPPED MANUFACTURERS IN THE US MARKET RECEIVED 101 IN NEW ORDERS NEW CHIP ORDERS BASED ON A THREEMONTH MOVING AVERAGE DECLINED 4 TO 216 BILLION FROM 225 BILLION BUT SOME OF THE REASONS FOR THE DECLINE MAY ACTUALLY PORTEND GOOD NEWS FOR THE INDUSTRY ANALYSTS SAID ONE POSSIBLE FACTOR IS WHAT MARKETWATCHERS ARE CALLING THE SUMITOMO EFFECT AN EXPLOSION AT SUMITOMO CHEMICAL CO'S EPOXY RESIN PLANT IN JAPAN IN JULY SET OFF FEARS OF CHIP SHORTAGE BECAUSE THE MATERIAL IS CRUCIAL FOR PACKAGING CHIPS CUSTOMERS PUT IN EXTRA ORDERS IN JULY AND AUGUST TO TRY TO COMPENSATE FOR A SHORTAGE AND THEN PULLED BACK ON ORDERS IN SEPTEMBER WHEN CHIP SUPPLIES BEGAN TO LOOK SECURE THE SUMITOMO EFFECT STOLE BOOKINGS FROM SEPTEMBER SAID MEL PHELPS AN ANALYST AT HAMBRECHT AND QUIST ANOTHER FACTOR SAID ANALYST THOMAS THORNHILL OF MONTGOMERY SECURITIES IS A SHORTAGE OF MANUFACTURING CAPACITY AT COMPANIES SUCH AS MOTOROLA INC TEXAS INSTRUMENTS INC AND NATIONAL SEMICONDUCTOR CORP WHICH HAVE STOPPED TAKING ADDITIONAL ORDERS ON SOME PRODUCTS THAT ARE IN HEAVY DEMAND HE NOTED THAT THE BOOKTOBILL RATIO ALSO REFLECTS A POSITIVE FACTOR THE FACT THAT CHIP SHIPMENTS ROSE AN UNUSUALLY ROBUST 226 TO 25 BILLION FROM 204 BILLION THE NEWS ADDS TO MIXED SIGNALS FROM CHIP MAKERS' EARNINGS REPORTS WHICH CAUSED SOME INVESTORS TO CONCLUDE THAT A MARKET RUNUP IN SEMICONDUCTOR STOCKS HAD REACHED ITS PEAK ADVANCED MICRO DEVICES INC AND INTEL CORP FOR EXAMPLE DISCLOSED RESULTS THAT DISAPPOINTED INVESTORS MOTOROLA STOCK ROSE FIVE POINTS TO 1035 YESTERDAY AFTER TOPPING ANALYSTS' EXPECTATIONS THE INVESTOR WHO TAKES THE POSITION THAT THE GOOD NEWS IS IN THESE STOCKS AND THE INDUSTRY IS SLOWING DOWN IS EXITING AT THE WRONG TIME MR THORNHILL SAID 9310130163 931013 FIRST UNION NATIONAL BANK ROANOKE VA FIRST UNION NATIONAL BANK OF VIRGINIA SAID IT WILL OPEN 53 BRANCHES IN 23 CITIES AND TOWNS ACROSS SOUTHWEST VIRGINIA FRIDAY FIRST UNION SAID IT WILL OPEN BRANCHES FORMERLY OWNED BY DOMINION BANK FIRST UNION ACQUIRED DOMINION BANK IN MARCH BUT THE BANK'S BRANCHES CONTINUED TO OPERATE UNDER THE DOMINION NAME WHILE FIRST UNION CONVERTED COMPUTER SYSTEMS AND FAMILIARIZED EMPLOYEES WITH FIRST UNION PRODUCTS AND SERVICES 9310130162 931013 INFINITY PLANS TO BUY ASSETS OVERLAND PARK KAN INFINITY INC SAID IT ENTERED INTO A LETTER OF INTENT TO ACQUIRE SUBSTANTIALLY ALL OF THE ASSETS OF CONSOLIDATED OIL WELL SERVICES INC FOR AN UNDISCLOSED AMOUNT OF CASH PREFERRED STOCK AND A PROMISSORY NOTE CONSOLIDATED OIL WELL CHANUTE KAN IS AN OILFIELD SERVICES CONCERN INFINITY SAID THAT UPON COMPLETION OF THE TRANSACTION IT PLANS TO BUILD A WASTEWATER TREATMENT FACILITY AT CONSOLIDATED'S SITE IN CHANUTE INFINITY SAID IT BEGAN PRELIMINARY STEPS TO HOLD A 2 MILLION OFFERING OF COMMON SHARES TO FOREIGN INVESTORS TO FINANCE THE PURCHASE 9310130161 931013 PEPPERAND SALT STOCKS CLOSING NARROWLY MIXED DUGOUT CANOE TRAVELLOG 9310130159 931013 VMARK TO ENTER EASTERN EUROPE FRAMINGHAM MASS VMARK SOFTWARE INC SAID RED SQUARE SOFTWARE OF MOSCOW WILL DISTRIBUTE ITS PRODUCTS IN PARTS OF EASTERN EUROPE IN A NEWS RELEASE THE COMPANY SAID IT ALSO HAS CONTRACTED WITH RED SQUARE TO TRANSLATE UNIVERSE ITS DATABASEMANAGEMENT SYSTEM INTO THE RUSSIAN LANGUAGE TO BE AVAILABLE LATE THIS YEAR RED SQUARE IMPORTS WESTERN SOFTWARE TECHNOLOGY INTO RUSSIA AND THE COMMONWEALTH OF INDEPENDENT STATES VMARK ADDED THAT IT PLANS TO MAKE ITS UNIVERSE PRODUCT AVAILABLE IN JAPANESE TAIWANESE MANDARIN CHINESE AND OTHER ASIAN LANGUAGES INTERNATIONAL SALES ACCOUNTED FOR 34 OF VMARK'S 1992 REVENUE OF 188 MILLION THE COMPANY SAID 9310130158 931013 WALMART LOSES A CASE ON PRICING BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL IN A CASE THAT STRIKES AT THE HEART OF WALMART STORES INC'S AGGRESSIVE LOWPRICING PHILOSOPHY A STATE COURT IN ARKANSAS RULED THAT THE COUNTRY'S LARGEST RETAILER ILLEGALLY ENGAGED IN PREDATORY PRICING BY SELLING PHARMACY PRODUCTS BELOW COST SOME ANTITRUST ATTORNEYS SAY THE RULING IF IT SURVIVES ON APPEAL COULD ENCOURAGE MORE PLAINTIFFS TO USE STATE COURTS TO FILE PREDATORYPRICING SUITS AGAINST WALMART AND OTHER LARGE COMPANIES RECENT FEDERAL COURT RULINGS AGAINST ALLEGED VICTIMS OF PREDATORY PRICING HAVE SET A DIFFICULT STANDARD FOR THEM TO PROVE THEIR CASES BUT THE WALMART CASE HAS BEEN WIDELY WATCHED AS A TEST OF STATE PREDATORYPRICING LAWS WHICH EXIST IN ARKANSAS AND 22 OTHER STATES PHARMACIES IN MANY OF THE OTHER STATES HELPED FUND THE SUIT AGAINST WALMART IN THE ARKANSAS CASE JUDGE DAVID L REYNOLDS OF CHANCERY COURT IN CONWAY AGREED WITH THREE CONWAYAREA PHARMACIES THAT WALMART'S PRICING POLICIES AS CARRIED OUT IN ITS LOCAL DISCOUNT STORE HAD THE INTENT OF INJURING COMPETITORS AND DESTROYING COMPETITION AS DEFINED IN ARKANSAS'S UNFAIR TRADE PRACTICES ACT JUDGE REYNOLDS AWARDED 289407 IN DAMAGES THREE TIMES THE ACTUAL 96469 IN DAMAGES HE FOUND THE THREE SMALL INDEPENDENT PHARMACIES SUFFERED THE PLAINTIFFS HAD SOUGHT 100000 IN ACTUAL DAMAGES AND 1 MILLION IN PUNITIVE DAMAGES MORE SIGNIFICANTLY FROM WALMART'S VIEWPOINT HE ENJOINED THE COMPANY'S CONWAY STORE FROM SELLING ITEMS BELOW COST UNDER STATE LAW WALMART'S COST WOULD INCLUDE THE INVOICE PRICE PLUS THE COST OF DOING BUSINESS OR OVERHEAD THE JUDGE IS EXPECTED TO ISSUE A MORE DETAILED INJUNCTION IN THE NEXT FEW DAYS SAID MATT ADLONG THE ATTORNEY FOR PLAINTIFFS AMERICAN DRUGS INC MAYFLOWER FAMILY PHARMACY AND BAKER DRUG ROBERT K RHOADS WALMART GENERAL COUNSEL SAID THE COMPANY WILL APPEAL TO THE ARKANSAS SUPREME COURT WHAT HE TERMED AN ANTICONSUMER DECISION THEY WERE NOT INJURED HE SAID OF THE PLAINTIFFS ADDING WE NEVER INTEND TO RUN ANYONE OUT OF BUSINESS THOUGH THE RULING ENJOINS ONLY WALMART'S CONWAY STORE MR RHOADS SAID THE DECISION IF ALLOWED TO STAND WOULD ALSO FORCE WALMART AND OTHER RETAILERS TO RAISE PRICES THROUGHOUT ARKANSAS BUT FOR NOW MR RHOADS SAID WALMART WILL POST A BOND AND CONTINUE CURRENT PRICING POLICIES PENDING ITS APPEAL WALMART COMMON SHARES CLOSED AT 2575 DOWN 75 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE WALMART RULING REFLECTS THE SPLIT PERSONALITY THE US JUDICIAL SYSTEM HAS DEVELOPED ABOUT PRICING CASES FEDERAL COURTS FOR EXAMPLE HAVEN'T BEEN PARTICULARLY HOSPITABLE TO ALLEGED VICTIMS OF PREDATORY PRICING IN JUNE THE US SUPREME COURT UPHELD LOWERCOURT RULINGS TOSSING OUT A 150 MILLION JUDGMENT AGAINST BA T INDUSTRIES PLC FOR ALLEGEDLY TRYING TO DRIVE BROOKE GROUP LTD OUT OF THE GENERICCIGARETTE MARKET WITH UNFAIR PRICE CUTS AND IN AUGUST A FEDERAL JURY IN TEXAS REJECTED CLAIMS THAT AMR CORP'S AMERICAN AIRLINES UNIT WAS TRYING TO DRIVE WEAKER COMPETITORS OUT OF BUSINESS WHEN IT SLASHED FARES LAST YEAR THAT HAS LED TO SPECULATION THAT PLAINTIFFS MAY TURN TO STATE LAWS THAT ARE GENERALLY MORE ACCOMMODATING IN SOME CASES DEFINING SELLING BELOW COST AS PRIMA FACIE EVIDENCE OF PREDATORY INTENT BUT SEVERAL ANTITRUST ATTORNEYS SAID THEY DOUBT ANY FLOODGATES WILL OPEN BEFORE WALMART'S APPEAL IS HEARD OFTEN VICTORIES ARE TAKEN AWAY IN APPELLATE COURT BY JUDGES WHO ARE LESS CONCERNED WITH WHETHER SPECIFIC COMPETITORS HAVE BEEN INJURED THAN WITH THE TOUGHER STANDARD OF WHETHER COMPETITION IS BEING DESTROYED SAID GARRET RASMUSSEN WHO REPRESENTED BROOKE GROUP IN ITS RECENT CASE DURING THE TRIAL WALMART CONCEDED THAT IT SOLD ITEMS BELOW COST BUT ARGUED THAT IT DIDN'T INTEND TO DESTROY COMPETITION THE COMPANY ALSO CONTENDED THAT GROSS PROFIT MARGINS AT TWO OF THE THREE PHARMACIES BRINGING THE SUIT ACTUALLY IMPROVED AFTER WALMART OPENED A PHARMACY IN ITS CONWAY STORE IN 1987 IN HIS FINDINGS HOWEVER JUDGE REYNOLDS WROTE THAT THE PHARMACIES WERE INJURED BECAUSE WALMART'S BELOWCOST ADVERTISING AND PRICING DECREASED THEIR GROWTH IN SALES AND PROFITS EVEN AS THE POPULATION AND COMMERCE IN FAULKNER COUNTY WING RAPIDLY DEFENSE JUDGE REYNOLDS ALSO REJECTED WALMART'S CONTENTION THAT IT SHOULD BE JUDGED ON A MARKET BASKET OF PRODUCTS AND NOT ON INDIVIDUAL ITEMS ALTHOUGH SOME ITEMS WERE SOLD BELOW COST THE COMPANY ARGUED THAT DIDN'T CONSTITUTE A VIOLATION OF THE STATE LAW BECAUSE THE TOTAL NUMBER OF PRODUCTS SOLD WERE PRICED ABOVE COST JUDGE REYNOLDS ALSO SAID IT WAS POSSIBLE TO INFER WALMART'S PREDATORY INTENT HE CITED THE NUMBER AND FREQUENCY OF BELOWCOST SALES THE INSTORE COMPARISON WITH COMPETITORS' PRICES THE DISPARITY BETWEEN PRICES AT WALMART STORES IN FAULKNER COUNTY AND OTHER MARKETS WITH MORE OR LESS COMPETITION AND WALMART'S STATED POLICY OF MEETING OR BEATING THE COMPETITION WITHOUT REGARD TO COST THE MAXIMUM PRICE FOR ANY PRODUCT SOLD AT WALMART IS SET AT THE COMPANY'S BENTONVILLE ARK HEADQUARTERS BUT THE RETAILER ALLOWS STORE MANAGERS TO PRICE PRODUCTS LOWER TO MEET OR BEAT COMPETITORS' PRICES WALMART HAS FACED PREDATORYPRICING CASES BEFORE BUT IT HAS GENERALLY SETTLED THEM OUT OF COURT UNDER SEAL AS IT DID WITH A COLORADO CASE EARLIER THIS YEAR WITH THIS LATEST RULING THOUGH MR ADLONG SAID HE HAS BEEN INUNDATED WITH CALLS FROM OTHER PARTIES INTERESTED IN PURSUING SIMILAR SUITS KERRY YOUNG AN ATTORNEY REPRESENTING A FIVESTORE PHARMACY CHAIN IN PINE BLUFF ARK SAID THAT CHAIN'S PREDATORYPRICING SUIT AGAINST WALMART WHICH HAD BEEN ON HOLD IN STATE COURT SINCE IT WAS FILED LAST FALL WILL NOW MOVE FORWARD WALMART HAS RAISED PRICES AT LEAST ONCE AS A RESULT OF A PREDATORYPRICING SUIT IN OKLAHOMA WHERE A STATE LAW REQUIRES RETAILERS TO SELL PRODUCTS AT LEAST 675 ABOVE COST IN MOST CIRCUMSTANCES AFTER SPENDING AN ESTIMATED 80000 UNSUCCESSFULLY LOBBYING THE OKLAHOMA LEGISLATURE TO SCUTTLE THE LAW WALMART AGREED TO INCREASE PRICES TO THAT LEVEL IN SETTLING A 1986 SUIT BROUGHT BY A GROUP OF PAWHUSKA OKLA PHARMACISTS MEANWHILE PHARMACIST DWAYNE GOODE OWNER OF AMERICAN DRUGS THE LEAD PLAINTIFF IN THE CONWAY CASE HAS BEEN INVITED TO TALK ABOUT HIS VICTORY AT THE NATIONAL ASSOCIATION OF RETAIL DRUGGISTS' ANNUAL CONVENTION IN INDIANAPOLIS IN A FEW WEEKS 9310130157 931013 WORK & FAMILY BY SUE SHELLENBARGER TRENDS IN FLEXIBLE SCHEDULING SUGGEST AMERICANS INCREASINGLY ARE EARLY RISERS A SMALL BUT GROWING GROUP OF EMPLOYERS WHO LET INDIVIDUALS OR WORK TEAMS CHOOSE THEIR OWN SCHEDULES FIND A SURPRISING NUMBER ARE STARTING WORK BEFORE DAWN OF THE MORE THAN 150 EMPLOYEES ON FLEXIBLE HOURS AT UNUM LIFE INSURANCE OF AMERICA A UNUM UNIT IN PORTLAND MAINE A LARGE NUMBER ARE CHOOSING A 5 AMTO1 PM OR 6 AMTO2 PM SHIFT SAYS LIZ NEEDLEMAN MANAGER OF WORK/HOME PROGRAMS MANY HAVE SCHOOLAGE CHILDREN AND DON'T WANT TO LEAVE THEM ALONE AFTER SCHOOL IS THIS THE SCHEDULE OF THE 90S I'M NOT SURE SHE SAYS OTHER UNUM EMPLOYEES ARE SPLITTING THEIR SHIFTS WORKING 9 AM TO 1 PM AND RETURNING AT 5 PM FOR ANOTHER FOUR HOURS SHE SAYS THIS ENABLES THEM TO SERVE WEST COAST CLIENTS BETTER PRESUMABLY WHILE A PARTNER WATCHES THE KIDS IN THE EVENING MS NEEDLEMAN SAYS AN INFORMAL EMPLOYEE EMAIL SURVEY AT U S WEST SHOWS THAT IN THE PAST TWO TO FIVE YEARS A SURPRISING NUMBER HAVE BEGUN STARTING THEIR WORK DAYS BETWEEN 5 AM AND 7 AM SAYS SPOKESWOMAN CATHY FOWLER NEARLY ONETHIRD OF THE 156 EARLY RISERS WHO RESPONDED SAY THEY WANT TO AVOID COMMUTING HASSLES ABOUT 18 SAY THEY WANT MORE TIME LATE IN THE DAY TO CARE FOR FAMILY MEMBERS OR DO ERRANDS AN EQUAL NUMBER SAY THEY WANT TO GET A RUNNING START ON THE DAY MAKING SURE SYSTEMS ARE WORKING BEFORE CUSTOMERS NEED THEM ANOTHER 18 SAY THEY CAN GET MORE WORK DONE IN THE EARLYMORNING HOURS WHEN INTERRUPTIONS ARE FEW AND COMPUTER SYSTEMS ARE FREE ONETENTH SAY EARLYMORNING HOURS HELP THEM REACH CLIENTS IN DIFFERENT TIME ZONES IN GENERAL PEOPLE HAVE FOUND THAT EARLYMORNING TIME CAN HELP THEM BE MORE PRODUCTIVE AND BALANCE HOME AND WORK SAYS MS FOWLER WHO CONDUCTED THE SURVEY AT AETNA LIFE & CASUALTY MICHELLE CARPENTER MANAGER OF WORK/FAMILY STRATEGIES SAYS SHE RECENTLY HAD TROUBLE FINDING AN ADMINISTRATIVE ASSISTANT IN HER DEPARTMENT WHO WANTED TO COVER THE 9TO5 SHIFT MOST PEOPLE WANTED EARLIER SCHEDULES BEGINNING AT 7 AM SHE SAYS THE GROUP DECIDED TO ROTATE THE LATER SHIFT AMONG FIVE PEOPLE GREATER INVOLVEMENT OF FATHERS IN CHILD CARE IS A TREND THAT SEEMS LIKELY TO CONTINUE A CENSUS BUREAU STUDY PUBLISHED LAST MONTH BY THE POPULATION REFERENCE BUREAU SHOWS THAT IN 1991 20 OF PRESCHOOL CHILDREN WERE CARED FOR BY THEIR FATHERS WHILE THEIR MOTHERS WORKED UP FROM 15 IN 1988 LONGTERM UNEMPLOYMENT AMONG MEN AND THE HIGH COST OF CHILD CARE WERE AMONG THE REASONS GROWTH IN PARTTIME AND SHIFT WORK ALSO LED MANY COUPLES TO SHARE CHILD CARE RATHER THAN PAYING A PROVIDER THE STUDY SAYS THE FACTORS DRIVING THE TREND HAVEN'T CHANGED MUCH SINCE 1991 OTHER STUDIES SHOW MEN WHO LOST NINE TIMES MORE JOBS THAN WOMEN IN THE 199091 RECESSION ALSO HAVE GAINED ONLY ABOUT ONETHIRD AS MANY JOBS AS WOMEN SINCE THEN SAYS WILLIAM GOODMAN A BUREAU OF LABOR STATISTICS RESEARCH ANALYST CHILDCARE COSTS SHOW NO SIGNS OF EASING WHILE RECENT NATIONWIDE DATA AREN'T AVAILABLE A 1993 OREGON STUDY BY ARTHUR EMLEN A PROFESSOR EMERITUS AT PORTLAND STATE UNIVERSITY SHOWED THAT ONLY 33 OF CHILDREN WERE IN PAID CARE EVEN FEWER THAN THE NATIONAL LEVELS OF 35 IN 1991 AND 40 IN 1988 REPORTED IN THE CENSUS BUREAU STUDY GROWTH IN FEMALEDOMINATED SERVICESECTOR JOBS PARTTIME WORK AND NONDAY SHIFTS CONTINUE TO CREATE FAMILY SITUATIONS THAT DRAW FATHERS INTO CHILD CARE STEPHEN HARRIS A CUMBERLAND CENTER MAINE FATHER WHOSE WIFE HAS A JOB DECIDED TO CARE FOR HIS TWO CHILDREN AFTER HIS EFFORTS TO FIND FULLTIME WORK FAILED IT WOULDN'T HAVE MADE SENSE FOR ME TO WORK AT THE KIND OF JOB I COULD GET AND PAY FOR CHILD CARE SAYS MR HARRIS WHO PUBLISHES FULLTIME DADS A BIMONTHLY NEWSLETTER ON THE SIDE CALIFORNIA'S CAMPAIGN TO FORCE STATE EMPLOYERS TO BE MORE FLEXIBLE ENDS IN A VETO BY GOV PETE WILSON IN THE LATEST EXAMPLE OF GOVERNMENT INVOLVEMENT IN WORKPLACE SCHEDULING THE ISSUE ERUPTED INTO A LEGISLATIVE BATTLE LAST SPRING AFTER CALIFORNIA'S DEPARTMENT OF MOTOR VEHICLES IMPOSED A PUNITIVE PAY CUT ON EMPLOYEE LESBHIA MORONES AN EAST OAKLAND MOTHER OF FIVE FOR REPEATED TARDINESS MS MORONES CONCEDED THAT SHE WAS OFTEN LATE USUALLY BY LESS THAN FIVE MINUTES PARTLY BECAUSE SHE DIDN'T WANT TO LEAVE HER CHILDREN ALONE BEFORE SCHOOL STARTED AT 8 AM OTHERWISE SHE WAS A CONSCIENTIOUS EMPLOYEE THE RECORD SHOWED AN ADMINISTRATIVE LAW JUDGE REVOKED THE PAY CUT BUT WAS OVERRULED BY THE STATE'S PERSONNEL BOARD AMID A BLITZ OF MEDIA ATTENTION TO THE PLIGHT OF MS MORONES A DEEPLY DIVIDED STATE LEGISLATURE PASSED A MEASURE BACKED BY THE 130000MEMBER STATE EMPLOYEES' UNION REQUIRING AGENCIES TO BE FLEXIBLE IN ACCOMMODATING WORKERS WITH FAMILY DUTIES BUT GOV WILSON DISAGREED SAYING STATE LAW ALREADY PROVIDES AMPLE PROTECTION FOR FAMILY NEEDS THE BROUHAHA IS A CLASSIC CASE OF HOW RIGID POLICIES CAN UNFAIRLY CATCH IN THEIR NET AND PUNISH COMMITTED WORKERS WITH FAMILY CONFLICTS SAYS FRAN SUSSNER RODGERS CHIEF EXECUTIVE OF WORK/FAMILY DIRECTIONS A BOSTON CONSULTANT DES MOINES IOWA OPENS A DOWNTOWN FAMILYFRIENDLY PUBLIC SCHOOL WITH FINANCIAL BACKING FROM 17 EMPLOYERS INCLUDING PRINCIPAL FINANCIAL GROUP THE FACILITY OFFERS AN EXTENDED SCHOOL YEAR BEFORESCHOOL AND AFTERSCHOOL CARE AND IT WELCOMES DAILY VISITS BY PARENTS WHO WORK DOWNTOWN TWO YEARS WITHOUT SLEEP IS THE NAME OF A NEW COLLECTION OF WORKING MOTHERS' REFLECTIONS ON HAVING A BABY AND A JOB PUBLISHED BY BLUE POINT BOOKS SANTA BARBARA CALIF THE BOOK HAS BEEN BOUGHT BY ABOUT 100 EMPLOYERS FOR THEIR EMPLOYEES 9310130156 931013 WHO'S NEWS AMERICANS WIN NOBEL AWARD IN ECONOMICS BY LINDLEY H CLARK JR STAFF REPORTER OF THE WALL STREET JOURNAL TWO US ECONOMISTS ROBERT W FOGEL OF THE UNIVERSITY OF CHICAGO AND DOUGLASS C NORTH OF WASHINGTON UNIVERSITY OF ST LOUIS WON THE NOBEL MEMORIAL PRIZE IN ECONOMIC SCIENCE BOTH ARE ECONOMIC HISTORIANS WHO HAVE SPENT THEIR PROFESSIONAL LIVES EXAMINING HOW THE ECONOMY HAS WORKED IN THE PAST AND WHY IT HASN'T WORKED BETTER IN JOINTLY AWARDING THE 825000 PRIZE THE ROYAL SWEDISH ACADEMY OF SCIENCES SAID THE TWO ECONOMISTS WERE LEADING FIGURES WITHIN THE FIELD OF NEW ECONOMIC HISTORY IN THEIR WORK BOTH MEN HAVE STRESSED THE ROLE OF INSTITUTIONS PROF FOGEL HAS STRESSED THE ROLE OF RAILROADS IN THE DEVELOPMENT OF THE US HE ALSO HAS SHOWN THAT SLAVERY WAS ECONOMICALLY EFFICIENT HIS COMMENTS ON SLAVERY STIRRED CONTROVERSY AND HE STRESSED THAT SLAVERY'S ECONOMIC VIRTUES BY NO MEANS JUSTIFIED ITS EXISTENCE PROF NORTH IN HIS WORK HAS SHOWN THAT POLITICAL ECONOMIC AND SOCIAL FACTORS MUST BE TAKEN INTO ACCOUNT IF WE ARE TO UNDERSTAND THE INSTITUTIONS THAT HAVE PLAYED SO LARGE A ROLE IN ECONOMIC DEVELOPMENT THE ECONOMICS PRIZE WAS ESTABLISHED IN 1968 BY THE CENTRAL BANK OF SWEDEN AND THE NEW AWARDS BRING THE NUMBER OF AMERICAN WINNERS TO 21 OUT OF 34 PROF FOGEL IS THE SEVENTH WINNER FROM THE UNIVERSITY OF CHICAGO THE ECONOMICS PRIZE IS THE ONLY NOBEL AWARD THAT WAS NOT ESTABLISHED BY THE SWEDISH INVENTOR OF DYNAMITE ALFRED NOBEL IN THE EARLY YEARS MANY OF THE PRIZES WENT TO ECONOMISTS HEAVILY INFLUENCED BY JOHN MAYNARD KEYNES A BRITISH ECONOMIST WHO SAW A NEED FOR GOVERNMENTS TO STEER THE ECONOMY OUT OF ECONOMIC TROUBLE BOTH PROF NORTH AND PROF FOGEL HOWEVER ARE PRIMARILY MARKETORIENTED STRESSING THE ROLE OF COMPETITION ECONOMIC HISTORIANS MUST SPEND A GREAT DEAL OF THEIR TIME CONSTRUCTING AND RECONSTRUCTING DATA FOR EARLIER PERIODS THEY THEN APPLY THEORY TO EXPLAIN WHAT HAPPENED FOR EXAMPLE THE ECONOMIC DEVELOPMENT IN WESTERN EUROPE FROM THE MIDDLE AGES TO THE 18TH CENTURY SHOWS THAT CHANGES IN RELATIVE PRICES AND FLUCTUATIONS IN POPULATION GROWTH LED TO INSTITUTIONAL CHANGES THE ACADEMY SAID THE SPEEDIER INDUSTRIALIZATION IN ENGLAND AND THE NETHERLANDS DEPENDED ON THE FACT THAT CERTAIN CONSERVATIVE INSTITUTIONS SUCH AS THE GUILDS WERE WEAK THE GUILDS WOULD HAVE PREFERRED TO HOLD BACK INDUSTRIALIZATION PROF NORTH WAS BORN IN CAMBRIDGE MASS AND HAS TAUGHT AT WASHINGTON UNIVERSITY IN ST LOUIS SINCE 1983 HE TOOK HIS DOCTORATE AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY AND TAUGHT AT THE UNIVERSITY OF WASHINGTON AT SEATTLE FROM 1960 TO 1983 PROF FOGEL BORN IN NEW YORK HAS BEEN DIRECTOR OF THE CENTER FOR POPULATION ECONOMICS AT THE UNIVERSITY OF CHICAGO SINCE 1981 AFTER EARNING HIS DOCTORATE AT JOHNS HOPKINS UNIVERSITY HE WAS A PROFESSOR AT THE UNIVERSITY OF CHICAGO FROM 1960 TO 1975 AND AT HARVARD FROM 1975 TO 1981 9310130155 931013 TELECOMMUNICATIONS BELLSOUTH TO ENTER CABLE TV BY BUYING STAKE IN PRIME BY ANITA SHARPE AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL BELLSOUTH CORP IS EXPECTED TO ANNOUNCE TODAY AN AGREEMENT TO ACQUIRE A 225 STAKE IN PRIME MANAGEMENT CO IN A TRANSACTION THAT GIVES THE REGIONAL BELL COMPANY THE ENTRY IT HAS BEEN SEEKING INTO THE CABLE TELEVISION BUSINESS BELLSOUTH EXECUTIVES WOULDN'T DISCLOSE THE VALUE OF THE TRANSACTION BUT THEY CONFIRMED THAT BELLSOUTH WOULD LEND PRIME AS MUCH AS 250 MILLION THAT WOULD BE USED FOR A 450 MILLION RECAPITALIZATION OF COMMUNITY CABLE TELEVISION A LAS VEGASBASED CABLE OPERATOR THAT IS PARTIALLY OWNED BY PRIME ONE INDIVIDUAL FAMILIAR WITH THE DEAL SAID BELLSOUTH WILL PAY LESS THAN 100 MILLION FOR ITS PRIME STAKE BELLSOUTH BASED IN ATLANTA WOULD ALSO GET OPTIONS TO BUY ALL OR PART OF BOTH COMMUNITY CABLE AND PRIME MANAGEMENT A TRANSACTION THAT EVENTUALLY COULD AMOUNT TO MORE THAN 1 BILLION ACCORDING TO INDUSTRY ESTIMATES BY STRUCTURING THIS INVESTMENT MOSTLY AS A LOAN BELLSOUTH'S EARNINGS WON'T BE IMPACTED ACCORDING TO INDIVIDUALS FAMILIAR WITH THE AGREEMENT PRIME MANAGEMENT CO COMMONLY KNOWN AS PRIME CABLE IS A PRIVATELY HELD AUSTIN TEXAS CABLE OPERATOR THE 24TH LARGEST IN THE COUNTRY COMMUNITY CABLE HAS ABOUT 203000 SUBSCRIBERS AND OWNS HOSPITALITY NETWORK WHICH PROVIDES INROOM PROGRAMMING AND INTERACTIVE TV SERVICES IN HOTEL ROOMS THE TRANSACTION WITH PRIME ISN'T EXPECTED TO AFFECT BELLSOUTH'S NEGOTIATIONS WITH QVC NETWORK INC AS PREVIOUSLY REPORTED BELLSOUTH IS EAGER TO JOIN QVC IN ITS BID TO ACQUIRE PARAMOUNT COMMUNICATIONS INC BUT TALKS ARE STILL HUNG UP ON WHAT BELLSOUTH WILL GET FOR ITS INVESTMENT WHEN THE OPPORTUNITY INITIALLY AROSE TO PARTICIPATE IN THE PARAMOUNT BIDDING BELLSOUTH OFFICIALS HESITATED BECAUSE THE COMPANY WANTED TO FIRST EXPLORE CABLE TECHNOLOGY OPPORTUNITIES ACCORDING TO ONE PERSON CLOSE TO THE COMPANY THE TRANSACTION WITH PRIME BRINGS BELLSOUTH MUCH CLOSER TO THAT GOAL BELLSOUTH EXECUTIVES SAID THE PARTNERSHIP ALLOWS THEM TO IMMEDIATELY BEGIN STUDYING HOW TO BRING AN ARRAY OF NEW COMMUNICATIONS SERVICES INCLUDING INTERACTIVE TELEVISION PAYPERVIEW TRADITIONAL CABLE TELEVISION AND EVEN ALTERNATIVE COMMUNICATIONS SYSTEMS TO BELLSOUTH CUSTOMERS BELLSOUTH HAS LONG BEEN DEVELOPING NETWORK ARCHITECTURE WITH ITS VAST FIBEROPTICS SYSTEM SAID SENIOR VICE PRESIDENT WILLIAM F REDDERSEN BUT PRIME BRINGS TO THE TABLE A KNOWLEDGE OF PACKAGING PRICING AND DISTRIBUTING ENTERTAINMENT IT ALSO GIVES BELLSOUTH A CONCENTRATED MARKET IN WHICH TO TEST NEW SERVICES WHILE MOST CABLE COMPANIES PROVIDE SERVICE TO ONLY A SECTION OF ANY GIVEN AREA PRIME CABLE SERVES THE ENTIRE CITY OF LAS VEGAS THAT BROAD REACH WILL ALLOW THE PHONE COMPANY TO TEST COUNTLESS INTERACTIVE SERVICES WITH TENS OF THOUSANDS OF HOTEL GUESTS IN THE LAS VEGAS AREA MOST WHOM ARE ALREADY ACCUSTOMED TO ORDERING MOVIES ON DEMAND IN THE ROOMS AND BECAUSE PRIME HAS ALREADY CONSTRUCTED A FIBER LOOP AROUND LAS VEGAS BELLSOUTH COULD ALSO HELP PROVIDE ALTERNATE TELEPHONE ACCESS SERVICES FOR LOCAL BUSINESSES BYPASSING THE LOCAL TELEPHONE COMPANY MOREOVER THE AGREEMENT POSITIONS BELLSOUTH TO BE THE LOGICAL STRATEGIC PARTNER WITH PRIME SHOULD BELLSOUTH ONE DAY BE ALLOWED TO OFFER VIDEO PROGRAMMING IN ITS OWN TELEPHONESERVICE AREA IN AUGUST A FEDERAL COURT DECLARED UNCONSTITUTIONAL ON FIRST AMENDMENT GROUNDS A PROVISION OF THE 1984 CABLE ACT BANNING PHONE COMPANIES FROM OFFERING VIDEO PROGRAMMING TO SUBSCRIBERS IN THEIR OWN SERVICE AREAS BUT THE DECISION IS NARROWLY DEFINED AND APPLIES ONLY TO BELL ATLANTIC CORP WITH THE DEEP POCKETS OF BELLSOUTH PRIME CAN NOW GROW MUCH FASTER EXECUTIVES SAY PRIME PUTS TOGETHER LIMITED PARTNERSHIPS TO BUY AND MANAGE CABLE SYSTEMS ITS CABLE SYSTEMS SERVE MORE THAN 500000 CUSTOMERS IN VARIOUS US MARKETS SUCH AS HOUSTON CHICAGO AND LAS VEGAS THROUGH SUBSIDIARIES BELLSOUTH CURRENTLY OFFERS TELEPHONE SERVICE IN NINE SOUTHEASTERN STATES AND WIRELESS COMMUNICATIONS WORLDWIDE IN THE LATE 1980S THE COMPANY BEGAN TESTING AN INFORMATIONDELIVERY SYSTEM NEAR ORLANDO FLA THAT OFFERED CABLE TV PAYPERVIEW MOVIES ENERGY MANAGEMENT AND OTHER SERVICES OVER A SINGLE FIBEROPTIC LINE BUT UNTIL NOW BELLSOUTH HASN'T MOVED AGGRESSIVELY INTO CABLE TV NOW THE AGREEMENT WITH PRIME CABLE PITS BELLSOUTH AGAINST ITS TELEPHONE SIBLINGS FOR EXAMPLE IN HOUSTON WHERE PRIME HAS CABLE SYSTEMS BELLSOUTH COULD COMPETE WITH SOUTHWESTERN BELL WHICH SERVES TEXAS OKLAHOMA ARKANSAS MISSOURI AND KANSAS SOUTHWESTERN BELL WAS THE FIRST TELEPHONE COMPANY TO ENTER THE CABLE BUSINESS WHEN IT PAID 650 MILLION IN FEBRUARY TO BUY TWO CABLE SYSTEMS FROM HAUSER COMMUNICATIONS INC IN SUBURBAN WASHINGTON DC IN RECENT MONTHS REGIONAL TELEPHONE COMPANIES HAVE ALIGNED WITH CABLE COMPANIES AT A FURIOUS PACE SIGNALING THAT THE TWO INDUSTRIES ARE ON A COURSE OF CONVERGENCE AS WELL AS COMPETITION NYNEX CORP RECENTLY AGREED TO INVEST 12 BILLION IN VIACOM INC AND U S WEST INC HAS INVESTED MORE THAN 25 BILLION IN TIME WARNER INC'S CABLE AND ENTERTAINMENT OPERATIONS BELL ATLANTIC CORP IS EXPECTED TO ANNOUNCE TODAY THAT IT PLANS TO ACQUIRE TELECOMMUNICATIONS INC THE NATION'S LARGEST CABLE OPERATOR FOR CABLE OPERATORS THE DEEPPOCKETED TELEPHONE COMPANIES WILL HELP FINANCE EFFORTS TO BUILD AND BUY NEW CABLE SYSTEMS BUT MORE IMPORTANTLY TO UPGRADE EXISTING CABLE NETWORKS TO DELIVER A VAST ARRAY OF INTERACTIVE VOICE VIDEO AND DATA SERVICES BELLSOUTH EARNED 166 BILLION ON REVENUE OF 1520 BILLION IN 1992 THE DEALS WOULD ALSO GIVE THE TELEPHONE COMPANIES ACCESS TO PROGRAMMING WHICH WILL ULTIMATELY DRIVE THE NEW INTERACTIVE SERVICES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BELLSOUTH CLOSED AT 58 UNCHANGED 9310130154 931013 INSURANCE HEALTH INSURERS TRY TO PUT ON A FRIENDLY FACE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL COULD YOU EVER LOVE YOUR HEALTH INSURANCE COMPANY LAWRENCE ENGLISH THINKS SO AS PRESIDENT OF CIGNA CORP'S HEALTH CARE DIVISION MR ENGLISH WANTS TO MAKE HIS OPERATION AS SERVICEORIENTED AS LL BEAN AMERICAN EXPRESS CO AND HOME DEPOT THREE COMPANIES ADMIRED BY CUSTOMERS HE HAS GIVEN HIS STAFF TWO YEARS TO DO IT IF THEY DON'T HEADS WILL ROLL HE VOWS CUSTOMER SERVICE HAS TRADITIONALLY BEEN AN AFTERTHOUGHT FOR HEALTH INSURERS UNTIL RECENTLY THE INSURANCE COMPANY'S MAIN CUSTOMER WAS THE EMPLOYER THAT BOUGHT A GROUP HEALTH INSURANCE POLICY CONSUMERS CAME IN CONTACT WITH INSURERS ONLY WHEN THEY SENT IN CLAIM FORMS BEFORE ALL THE INSURANCE COMPANY DID WAS PAY BILLS SAID JAMES ROBERTS A CONSULTANT WITH ERNST & YOUNG NOW THE GROWTH OF HEALTH MAINTENANCE ORGANIZATIONS HAS PUT INSURERS IN THE MEDICAL BUSINESS FORCING THEM TO PAY ATTENTION TO THE RETAIL MARKET THE COMPANIES THAT OFFER CUSTOMERS THE BEST DOCTORS THE QUICKEST REFERRALS AND THE MOST COURTEOUS SERVICE WILL WIN IN THE MARKETPLACE BUT MR ENGLISH CONCEDES THE INDUSTRY HAS A WAY TO GO BEFORE IT WINS ITS CUSTOMERS' AFFECTION CONSUMERS ARE TIRED OF THE ADMINISTRATIVE HASSLE MR ENGLISH SAYS THAT'S WHY INSURANCE COMPANIES ARE NOT LOVED WHETHER CIGNA AND OTHER INSURERS CAN ACHIEVE MR ENGLISH'S GOAL IS AN OPEN QUESTION THAT'S BECAUSE THEY ARE ALSO UNDER SEVERE PRESSURE TO CUT COSTS INSURERS INSIST THEY CAN DO BOTH CUT COSTS AND UPGRADE QUALITY AND SERVICE BUT IF THE CLINTON ADMINISTRATION DOES PUT CAPS ON HEALTH INSURANCE PREMIUMS INSURERS WILL HAVE A DIFFICULT TIME INVESTING IN THEIR HMO OPERATIONS EVEN SO EFFORTS TO IMPROVE ARE UNDER WAY ONE FOCUS HAS BEEN COMMUNICATION INSURERS CONCEDE THAT CUSTOMERS ARE OFTEN INCONVENIENCED WHEN THEY CALL WITH QUESTIONS I'VE GOTTEN MORE THAN ONE PHONE CALL PRECEEDED BY THE PHRASE DON'T HANG UP' SAYS PRUDENTIAL VICE PRESIDENT ROBERT LEWIS PRUDENTIAL INSURANCE CO OF AMERICA HAS AMONG OTHER THINGS SET UP A SEPARATE PHONE LINE TO HANDLE QUESTIONS FROM CUSTOMERS ABOUT MENTAL HEALTH BENEFITS BEFORE A CUSTOMER WOULD HAVE TO DIAL A MAIN NUMBER AND THEN GET TRANSFERRED TO A REPRESENTATIVE FAMILIAR WITH MENTAL HEALTH CIGNA IS PUTTING MORE CUSTOMER RECORDS ON COMPUTER SO ITS STAFF CAN GET INFORMATION WITHOUT HAVING TO FETCH A FILE FOLDER THE EFFORT HAS REDUCED THE TIME IT TAKES TO RESPOND TO A QUESTION BY 20 AND IN PARTS OF THE COUNTRY WHERE CIGNA'S COMPUTERS ARE MOST ADVANCED THE NUMBER OF CALLERS PUT ON HOLD HAS FALLEN FROM ONE IN TWO TO ONE IN 10 CONSUMERS ALSO COMPLAIN ABOUT HOW LONG IT TAKES TO GET AN APPOINTMENT WITH AN HMO DOCTOR INSURERS CITE A SHORTAGE OF FAMILY DOCTORS WHO ARE IMPORTANT TO HMOS BECAUSE THEY EMPHASIZE PREVENTIVE MEDICINE AND GIVE REFERRALS TO ADDRESS THE SHORTAGE AETNA LIFE & CASUALTY CO IS BUILDING FAMILY MEDICINE CLINICS IN ATLANTA CHARLOTTE CHICAGO DALLAS AND WASHINGTON AND IS AGGRESSIVELY RECRUITING DOCTORS TO STAFF THEM SAID JAMES GERAUGHTY A VICE PRESIDENT OF AETNA HEALTH PLANS AETNA'S HMO UNIT INSURERS ARE ALSO TRYING TO EDUCATE CONSUMERS ABOUT WHY SHORTAGES OCCUR IF ONE OF OUR PHYSICIANS IS VERY POPULAR YOU CAN EXPECT SOME WAITING TIME JUST LIKE YOU WOULD WITH ANY GOOD DOCTOR SAID SKIP CREASEY PRESIDENT OF THE TRAVELERS CORP UNIT THAT RUNS ITS HMO OPERATIONS METROPOLITAN LIFE INSURANCE CO IS TRYING TO IMPROVE CUSTOMER SATISFACTION BY DEMANDING MORE OF ITS DOCTORS SAID BUDD VOLBERDING WHO HEADS MET'S HMO OPERATION IN CALIFORNIA IN HIS STATE MET HAS ASSIGNED 25 PEOPLE TO VISIT DOCTORS THEY CHECK PATIENT RECORDS TO SEE IF PATIENTS HAVE GOTTEN THE PROPER IMMUNIZATIONS AND WHEN NECESSARY MAMMOGRAMS OR COUNSELING FOR SMOKING MET ALSO MONITORS DOCTORS WHO RECEIVE HIGH NUMBERS OF PATIENT COMPLAINTS ONE REASON FOR MET'S PUSH THE COMPANY IS SEEKING ACCREDITATION FROM THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE AN INDEPENDENT ORGANIZATION THAT INSPECTS PATIENT RECORDS INTERVIEWS DOCTORS AND EXAMINES THE DOCTORS' OFFICES BEFORE GIVING AN HMO ITS STAMP OF APPROVAL OF THE 520 HMOS IN THE COUNTRY 74 ARE ACCREDITED AND ANOTHER 100 HAVE APPLICATIONS PENDING AMERITECH CORP THE CHICAGOBASED REGIONAL PHONE COMPANY IS ONE OF THE LATEST COMPANIES TO DECLARE IT WILL ONLY DO BUSINESS WITH ACCREDITED HMOS INSURERS ARE ALSO TRYING TO TAKE THE PAIN OUT OF THE REFERRAL PROCESS UNTIL RECENTLY PRUDENTIAL DEMANDED A LOT OF ITS HMO CUSTOMERS THE CUSTOMERS WOULD HAVE TO CALL PRUDENTIAL TO GET CLEARANCE FOR A REFERRAL SCHEDULE THEIR OWN APPOINTMENTS AND TELL THE SPECIALIST WHAT SORT OF COVERAGE HE OR SHE HAD INITIALLY WE REQUIRED THE RETAIL CUSTOMER TO DO MORE THAN HE SHOULD HAVE MR LEWIS SAID NOW PRUDENTIAL ALLOWS DOCTORS WITH GOOD TRACK RECORDS FOR QUALITY CARE AND LOW COSTS TO MAKE A REFERRAL WITHOUT GETTING PRIOR APPROVAL THE DOCTOR'S OFFICE CAN IMMEDIATELY BOOK APPOINTMENTS AND ELECTRONICALLY NOTIFY THE SPECIALIST ABOUT COVERAGE TERMS PART OF KEEPING CUSTOMERS HAPPY IS KEEPING DOCTORS HAPPY IF A WELLLIKED PHYSICIAN QUITS AN HMO THE DOCTOR'S PATIENTS MIGHT LEAVE TOO TO THAT END INSURERS SAY THEY ARE TRYING TO BE MORE ATTENTIVE TO PHYSICIAN CONCERNS 9310130153 931013 ANDERSEN TO ADVISE RUSSIA ON ATTRACTING INVESTMENT NEW YORK THE BIG SIX ACCOUNTING FIRM ARTHUR ANDERSEN & CO SAID IT SIGNED A CONSULTING AGREEMENT WITH THE RUSSIAN STATE INVESTMENT CORP PARTLY TO ASSIST THE ORGANIZATION IN ATTRACTING FOREIGN INVESTMENT TO RUSSIA TERMS OF THE AGREEMENT WEREN'T DISCLOSED ARTHUR ANDERSEN SAID THE PACT CALLS FOR IT TO PROVIDE TECHNICAL ASSISTANCE FOR TAKING STATE ENTERPRISES PRIVATE DEVELOPING INSURANCE AND BANKING STRUCTURES AND DEVELOPING A POLITICALRISK INSURANCE SYSTEM A PRIVATE ORGANIZATION WITH GOVERNMENT FINANCING RUSSIAN STATE INVESTMENT CORP HAS 1 BILLION IN LIQUID ASSETS SUCH AS PRECIOUS METALS AND MORE THAN 50 MILLION IN WORKING CAPITAL EARMARKED FOR INVESTMENT INSURANCE AND OTHER ECONOMIC REFORM EFFORTS 9310130151 931013 HOLLYWOOD PARK CASINO LEASE INGLEWOOD CALIF HOLLYWOOD PARK INC SAID IT WILL ARRANGE FOR MANAGEMENT AND OPERATION OF ITS HOLLYWOOD PARK CASINO CARD CLUB SET TO OPEN HERE IN JANUARY THROUGH A LEASE ARRANGEMENT THE COMPANY HAD HOPED TO HOLD THE REQUIRED LICENSE ITSELF BUT GOV PETE WILSON ON MONDAY VETOED A BILL THAT WOULD HAVE ENABLED PUBLICLY HELD CORPORATIONS TO OPERATE GAMING CLUBS HOLLYWOOD PARK SAID THE POTENTIAL PROFITABILITY OF ITS CARD CLUB WILL BE DECREASED 5 TO 10 AS A RESULT OF HAVING TO FARM OUT THE MANAGEMENT AND OPERATION FUNCTIONS THE CARD CLUB IS THE KEY PROJECT IN THE COMPANY'S 100 MILLION EXPANSION PROGRAM ANNOUNCED LAST YEAR THE COMPANY ANNOUNCED THE LEASE ARRANGEMENT LATE MONDAY IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY HOLLYWOOD PARK SHARES CLOSED AT 3025 DOWN 2 9310130150 931013 SAVINGS BOND SALES FELL BY 631 IN SEPTEMBER WASHINGTON THE TREASURY DEPARTMENT SOLD 746 MILLION OF SERIES EE SAVINGS BONDS IN SEPTEMBER DOWN 631 FROM A YEAR EARLIER TO THE LOWEST LEVEL IN 22 MONTHS SAVINGS BOND SALES HAVE FALLEN EVERY MONTH SINCE MARCH WHEN THE TREASURY LOWERED THE GUARANTEED MINIMUM RATE FOR SAVINGS BONDS TO 4 FROM 6 SALES WERE UNUSUALLY HIGH FROM LATE 1991 TO EARLY 1993 PEAKING AT 255 BILLION IN JANUARY BECAUSE MARKETINTEREST RATES WERE BELOW THE 6 GUARANTEE FOR FISCAL 1993 WHICH ENDED SEPT 30 SAVINGS BONDS SALES TOTALED 173 BILLION UP 273 FROM FISCAL 1992 THE VALUE OF SAVINGS BONDS HELD BY AMERICANS AT THE END OF SEPTEMBER REACHED 15798 BILLION UP 129 FROM 13999 BILLION A YEAR EARLIER SAVINGS BONDS HELD FIVE YEARS OR LONGER CURRENTLY EARN THE MARKETBASED RATE OF 478 9310130149 931013 FINANCING BUSINESS GREENSTONE RESOURCES LTD GREENSTONE RESOURCES LTD A TORONTO MINING CONCERN SAID IT AGREED WITH UNDERWRITERS TO RAISE BETWEEN 135 MILLION CANADIAN DOLLARS US102 MILLION AND C18 MILLION THROUGH A PRIVATE PLACEMENT OF SPECIAL WARRANTS GREENSTONE SAID UNDERWRITERS PLAN TO SELL BETWEEN SIX MILLION AND EIGHT MILLION SPECIAL WARRANTS AT C225 EACH EACH SPECIAL WARRANT CONSISTS OF ONE COMMON SHARE AND ONEHALF OF A COMMON SHARE PURCHASE WARRANT A FULL WARRANT ENTITLES THE HOLDER TO PURCHASE A COMMON SHARE OF GREENSTONE FOR C265 FOR 16 MONTHS AFTER CLEARANCE OF THE FINAL PROSPECTUS GREENSTONE CURRENTLY HAS 173 MILLION SHARES OUTSTANDING GREENSTONE SAID PROCEEDS WILL PROVIDE THE US12 MILLION NEEDED FOR INITIAL CONSTRUCTION AT THE COMPANY'S SANTA ROSA GOLD PROJECT IN PANAMA GREENSTONE SHARES CLOSED AT 175 A SHARE UP 125 CENTS OR 77 IN NATIONAL OVERTHECOUNTER MARKET TRADING 9310130148 931013 WHO'S NEWS GUINNESS EXECUTIVE QUITS AMID CONFLICT WITH MANAGEMENT LONDON IN A SURPRISE ANNOUNCEMENT BRITISH DRINKS CONGLOMERATE GUINNESS PLC SAID THE MANAGING DIRECTOR OF ITS BIGGEST UNIT UNITED DISTILLERS WAS LEAVING BY MUTUAL AGREEMENT GUINNESS SHARES FELL MORE THAN 3 BEFORE RECOVERING TO END TRADING ON THE LONDON STOCK EXCHANGE AT 396 PENCE 607 SEVEN PENCE LOWER IN A TERSELY WORDED STATEMENT GUINNESS SAID CRISPIN DAVIS 43 YEARS OLD HAD RESIGNED HIS DIRECTORSHIPS AND WAS GIVING UP HIS EXECUTIVE DUTIES EFFECTIVE IMMEDIATELY GUINNESS GAVE NO REASON FOR HIS DEPARTURE BUT A SPOKESMAN SAID IT REFLECTED A CONFLICT IN STYLE AND MANAGEMENT APPROACH WITH THE COMPANY'S CHAIRMAN ANTHONY GREENER I CAN ASSURE YOU THAT IT HAS NOTHING AT ALL TO DO WITH STRATEGY OR THE WAY THE COMPANY HAS DECIDED TO RUN ITS BUSINESS IT IS A PERSONALITY ISSUE A GUINNESS SPOKESMAN SAID MR DAVIS JOINED UNITED DISTILLERS FROM PROCTER & GAMBLE CO IN JUNE 1990 AS MANAGING DIRECTOR OF ITS EUROPEAN REGION AND BECAME ITS MANAGING DIRECTOR LAST YEAR DESPITE THE OFFICIAL GUINNESS LINE HOWEVER ANALYSTS WERE QUICK TO POINT TO WHAT THEY SAID APPEARED TO BE A CONFLICT OVER MARKETING APPROACH ACCORDING TO THIS THESIS THE STYLE AND METHODS BROUGHT BY MR DAVIS TO UNITED DISTILLERS FROM PROCTER & GAMBLE HAD CLASHED WITH THE MORE TRADITIONAL ATTITUDES TOWARDS BRANDS AND IMAGE OF ESTABLISHED EXECUTIVES WITHIN THE INDUSTRY ALLEGATIONS BY COMPETITORS THAT GUINNESS WAS AGGRESSIVELY DISCOUNTING SCOTCH WHISKY ON SALES TO SELECTED CLIENTS BECAME MORE PREVALENT UNDER CRISPIN DAVIS NOTED JOHN WAKELY AN ANALYST AT LEHMAN BROS INTERNATIONAL IN LONDON LAST MONTH GUINNESS KNOWN FOR ITS FLAGSHIP DARK BEER REPORTED A 94 DROP IN PRETAX PROFIT FOR THE FIRST HALF OF 1993 TO 320 MILLION REFLECTING THE IMPACT OF RECESSION AND CHANGING CONSUMER HABITS 9310130147 931013 FINANCING BUSINESS BOEING CO BOEING CO SEATTLE BEGAN AN OFFERING OF 125 MILLION OF 6875 DEBENTURES DUE OCT 15 2043 THE DEBENTURES ARE PRICED AT 99788 OF THEIR PRINCIPAL AMOUNT TO YIELD 689 AT MATURITY FIRST BOSTON CORP MERRILL LYNCH & CO AND SALOMON BROTHERS INC ARE COMANAGERS OF THE UNDERWRITING SYNDICATE THE AEROSPACE COMPANY SAID IT WILL USE PROCEEDS FOR GENERAL CORPORATE PURPOSES 9310130145 931013 BORDEN INC 750000 SETTLEMENT COLUMBUS OHIO BORDEN INC SAID IT PAID 750000 TO SETTLE FEDERAL CHARGES BY THE JUSTICE DEPARTMENT THAT IT VIOLATED ANTITRUST LAWS WHILE SELLING MILK TO PUBLIC SCHOOLS IN LOUISIANA DURING THE 1980S ACCORDING TO BORDEN THE SETTLEMENT IS THE LAST SIGNIFICANT CASE INVOLVING FEDERAL CHARGES OF ANTITRUST ACTIVITIES IN ITS DAIRY BUSINESS BORDEN WHICH MAKES CONSUMER PACKAGED FOODS AND INDUSTRIAL PRODUCTS SAID IT HAS ALREADY ACCOUNTED FOR THE SETTLEMENT 9310130144 931013 ALLIEDSIGNAL BASF WILL FORM VENTURE IN FIBERS PRODUCTION MORRIS TOWNSHIP NJ ALLIEDSIGNAL INC SAID IT PLANS TO COMBINE ITS NYLON CARPET FIBERS AND TEXTILE NYLON BUSINESSES WITH THOSE OF BASF CORP THE RESULTING JOINT VENTURE WILL HAVE ANNUAL REVENUE TOTALING MORE THAN 1 BILLION THE VENTURE IS INTENDED TO LOWER THE COST OF PRODUCING NYLON FIBER WHICH FACES COMPETITIVE PRESSURE FROM INCREASINGLY POPULAR POLYESTER AND POLYOLEFIN FIBERS IT WILL CONSOLIDATE THE COMPANIES' FIBERMANUFACTURING SITES RESEARCH FACILITIES AND SALES OFFICES FOR ALLIEDSIGNAL FORMATION OF THE VENTURE ALSO IS EXPECTED TO RESULT IN A SLIGHT UPTICK IN EARNINGS NEXT YEAR AND AN INCREASE OF FIVE TO 10 CENTS IN PERSHARE EARNINGS IN 1995 A SPOKESMAN SAID THE COMPANY WHICH HAS MAJOR AEROSPACE AND AUTOMOTIVE PRODUCTS BUSINESSES EARNED 415 MILLION OR 380 A SHARE IN 1992 BASF BASED IN PARSIPPANY NJ SAID THE COMBINATION WILL ALLOW IT TO CONCENTRATE ON ITS CORE NYLON BUSINESS IN ADDITION TO FIBERS BASF WHICH IS THE NORTH AMERICAN MEMBER OF THE WORLDWIDE BASF GROUP MAKES CHEMICALS DYESTUFFS PLASTICS COATINGS PHARMACEUTICALS AND CONSUMER PRODUCTS 9310130143 931013 WHO'S NEWS FEDERAL EXPRESS'S MAY RESIGNS TO TAKE POST AT INTELLIGENT UNIT MEMPHIS TENN FEDERAL EXPRESS CORP SAID ROBERT P MAY 44 YEARS OLD RESIGNED AS CORPORATE SENIOR VICE PRESIDENT AND PRESIDENT OF THE COMPANY'S BUSINESS LOGISTICS SERVICES DIVISION NO SUCCESSOR HAS YET BEEN NAMED TO SUCCEED MR MAY WHO ACCEPTED THE POSITION OF CHIEF EXECUTIVE OFFICER OF INTELLIGENT DISTRIBUTION SERVICES INC THAT COMPANY IS A DIVISION OF INTELLIGENT ELECTRONICS INC A DELIVERY SYSTEM OF TECHNOLOGY PRODUCTS AND SERVICES IN EXTON PA MR MAY WILL BE A SENIOR VICE PRESIDENT OF THE PARENT COMPANY MR MAY'S MOVE IS THE LATEST IN A SERIES OF HIGHLEVEL DEPARTURES FROM FEDERAL EARLIER THIS YEAR THOMAS R OLIVER FEDERAL'S EXECUTIVE VICE PRESIDENT OF WORLDWIDE CUSTOMER OPERATIONS RESIGNED AS DID CAROLE A PRESLEY SENIOR VICE PRESIDENT IN CHARGE OF MARKETING IN LATE 1991 JAMES L BARKSDALE FEDERAL'S EXECUTIVE VICE PRESIDENT AND OPERATING CHIEF LEFT TO ASSUME THE PRESIDENCY OF MCCAW CELLULAR COMMUNICATIONS INC WHEN ASKED ABOUT THE DEPARTURES A SPOKESWOMAN YESTERDAY AT THE EXPRESSDELIVERY CONCERN SAID ONLY THAT OTHER COMPANIES RECOGNIZE THE TALENT WE HAVE NEITHER MR MAY NOR WILLIAM J RAZZOUK FEDERAL'S EXECUTIVE VICE PRESIDENT OF WORLDWIDE CUSTOMER OPERATIONS WAS AVAILABLE FOR COMMENT 9310130142 931013 INTERNATIONAL GERMANY'S CABINET PLANS TO RELOCATE GOVERNMENT TO BERLIN BY YEAR 2000 BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN SEEKING TO END MONTHS OF ACRIMONIOUS DEBATE GERMANY'S CABINET RESOLVED TO MOVE MOST OF THE GOVERNMENT FROM BONN TO BERLIN BY THE YEAR 2000 THE ISSUE HAS BECOME ONE OF THE MOST CHARGED IN RELATIONS BETWEEN EASTERN GERMANS WHO COUNT A GOVERNMENT MOVE TO BERLIN AS ONE OF THE PROMISES OF UNIFICATION AND WESTERNERS WHO HAVE TURNED INCREASINGLY AGAINST THE RELOCATION AS COSTS OF REBUILDING THE FORMER COMMUNIST STATE HAVE EXPLODED A 1991 BUNDESTAG VOTE WAS SUPPOSED TO HAVE ESTABLISHED BERLIN'S FUTURE AS THE SEAT OF THE GOVERNMENT AS WELL AS THE NOMINAL CAPITAL OF THE COUNTRY BUT EVEN THOUGH THAT RESOLUTION CALLED FOR A MOVE BY 1996 VIRTUALLY NO MOVEMENT FOLLOWED AND AGREEMENT ON A TARGET DATE WAS SEEN AS ESSENTIAL FOR PUTTING THE RELOCATION ON TRACK THE DECISION YESTERDAY SPLIT THE DIFFERENCE BETWEEN THOSE WHO PUSHED FOR A MOVE IN 1998 TO PRIME THE PUMP FOR AN ECONOMIC RECOVERY IN THE DEPRESSED EAST AND THOSE WHO CLAIMED IT WOULD BE CHEAPER TO RELOCATE IN 2002 THE GOVERNMENT HOWEVER SIDESTEPPED THE QUESTION OF THE TOTAL COST OF THE PROJECT SAYING ONLY THAT FINANCE MINISTER THEO WAIGEL WOULD CALCULATE THE COSTS INTO THE GOVERNMENT BUDGET BERLIN SUPPORTERS HAVE CLAIMED THE MOVE COULD BE DONE FOR AS LITTLE AS A COUPLE OF BILLION DOLLARS BUT RENOVATION AND BUILDING COSTS WERE RECENTLY ESTIMATED AT MORE THAN 5 BILLION MR WAIGEL'S PROJECTIONS FOR NEEDED INFRASTRUCTURE SPENDING IN BERLIN AND COMPENSATION FOR BONN WHICH TOGETHER WILL PROBABLY RUN TO SEVERAL TIMES THE BUILDING EXPENSES HAVE BEEN PROMISED BUT NEVER PRESENTED PUBLICLY COMING AT THE OUTSET OF A YEAR OF CAMPAIGNING BEFORE THE NEXT BUNDESTAG ELECTION THE COMPROMISE IS INTENDED TO CLEAR AWAY AN ISSUE THAT SEEMED CERTAIN TO COST CHANCELLOR HELMUT KOHL'S COALITION VOTES POLLS SHOW THAT DISGRUNTLED EASTERNERS WHOSE SUPPORT WAS CRITICAL FOR MR KOHL'S 1990 REELECTION ARE ALREADY INCLINED TO DESERT HIM IN 1994 THE FAR MORE NUMEROUS WESTERNERS VIEW THE MOVE AS AN UNAFFORDABLE LUXURY MORE PROOF OF THE UNSOUNDNESS OF THE COALITION'S BUDGET MANAGEMENT IN FACT THE CABINET'S ACTION MAY HAVE BEEN HASTENED TO HEAD OFF A REBELLION AMONG BUNDESTAG MEMBERS FROM MR KOHL'S OWN PARTY WHO HAVE BEEN FEARFUL OF FACING VOTERS ANGRY OVER THE ISSUE THE CABINET DECISION PROBABLY WON'T BOOST CONFIDENCE AMONG BUSINESSES INVESTING IN BERLIN EXECUTIVES HAVE SAID 1998 IS A CRUCIAL DATE BECAUSE A POSTPONEMENT BEYOND THEN OPENS THE POSSIBILITY OF A REVERSAL DURING THE NEXT LEGISLATIVE PERIOD CITY OFFICIALS CONTEND THAT AT LEAST 8 BILLION IN PRIVATE INVESTMENT IS HANGING ON THE GOVERNMENT'S DETERMINATION TO MOVE ITSELF I'M STILL DISAPPOINTED THIS IS TOO SLOW SAYS MARK PALMER PRESIDENT OF THE CENTRAL EUROPEAN DEVELOPMENT CORP WHICH IS BUILDING A LARGE COMMERCIAL COMPLEX IN BERLIN ANY STRETCHING OUT OF THE PROCESS RAISES THE FEAR THAT THIS IS NOT A DECISION BUT A SET OF DELAYING TACTICS 9310130141 931013 INTERNATIONAL YELTSIN PLEADS FOR JAPANESE INVESTMENT DESPITE CONCILIATORY MOVES NATION'S BUSINESS LEADERS TEND TO FAVOR CHINA BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO BORIS YELTSIN PITCHED FOR MORE JAPANESE INVESTMENT OVER LUNCH BUT THIS NATION'S BUSINESS LEADERS APPEARED TO HAVE LITTLE APPETITE INDEED IT INCREASINGLY IS APPARENT THAT CORPORATE JAPAN'S PREFERENCE IS FOR ANOTHER HUGE ASIAN NEIGHBOR CHINA ON THE FIRST DAY OF THE RUSSIANJAPANESE SUMMIT MR YELTSIN MADE SEVERAL CONCILIATORY GESTURES ALL OF THEM REFLECTING ONE OF HIS KEY GOALS TO PERSUADE JAPAN TO INVEST MORE HEAVILY IN THE BATTERED RUSSIAN ECONOMY FIRST HE HINTED AT HANDING BACK SOME DISPUTED ISLANDS NORTH OF JAPAN TELLING HIS HOSTS THAT HE INTENDED TO HONOR ALL TREATIES SIGNED BY THE SOVIET UNION THAT REMARK WHICH JAPANESE NEWSCASTS ANALYZED AT LENGTH WAS WIDELY INTERPRETED AS A PLEDGE BY MR YELTSIN TO RETURN TWO OF FOUR DISPUTED ISLANDS TO JAPAN WHEN THE TWO NATIONS OFFICIALLY SIGN A WORLD WAR II PEACE TREATY AS SPECIFIED IN AN EARLIER SOVIETJAPANESE PACT HE THEN APOLOGIZED FOR THE SOVIET UNION'S TREATMENT OF JAPANESE WAR PRISONERS GOING FURTHER THAN ANY OF HIS PREDECESSORS IN APOLOGIZING FOR THE DEATHS OF THOUSANDS OF JAPANESE SOLDIERS IN SIBERIA AFTER WORLD WAR II HE CALLED THEIR INTERNMENT BY THE SOVIET UNION INHUMAN THE APOLOGY IN PARTICULAR WON PLAUDITS FROM SOME JAPANESE EXECUTIVES THE PRISONER OF WAR ISSUE WAS LIKE A NAIL IN OUR THROAT SAID HIROTOSHI ICHIHI CHAIRMAN OF JAPAN SHIPPING EXCHANGE INC AN ASSOCIATION OF COMPANIES IN THE MARITIME INDUSTRY NOW THAT THE BIGGEST ONE IS GONE WE CAN START TOWARD A BUSINESS RELATIONSHIP NEVERTHELESS IT WILL TAKE MORE THAN GESTURES TO WIN ADDITIONAL HELP FOR THE RUSSIAN ECONOMY FROM THE JAPANESE ESPECIALLY WHEN THERE IS A TENDENCY TO FAVOR CHINA LAST YEAR JAPANESE INVESTMENT IN CHINA WAS 24 TIMES GREATER THAN IN RUSSIA JAPANESE COMPANIES ANNOUNCE NEW DEALS IN CHINA IN A STEADY STREAM LAST WEEK FOR INSTANCE SANYO ELECTRIC CO UNVEILED A 13 MILLION JOINT VENTURE FOR THE PRODUCTION OF REFRIGERATION EQUIPMENT ITS 12TH SUCH MANUFACTURING INVESTMENT IN CHINA IT ISN'T THAT BUSINESS OPPORTUNITIES IN RUSSIA ARE LACKING AS MR YELTSIN POINTED OUT RUSSIA HAS VAST NATURAL RESOURCES TO DEVELOP AND AN ENORMOUS MILITARY ESTABLISHMENT THAT NEEDS TO BE CONVERTED TO CIVILIAN PURPOSES THE NATURAL RESOURCES IN PARTICULAR OUGHT TO BE OF INTEREST TO THE JAPANESE WHO LACK MOST OF THEM YET MANY JAPANESE SEE INVESTING IN RUSSIA AS FRAUGHT WITH UNCERTAINTY EVEN WHEN THERE ARE PROMISING PROJECTS THEY DON'T SEEM TO MATERIALIZE BECAUSE OF PROBLEMS SUCH AS INSUFFICIENT INFRASTRUCTURE AN INADEQUATE LEGAL SYSTEM DIFFICULTIES IN SETTLING ACCOUNTS UNCLEAR LINES OF AUTHORITY AND SO ON SAID GAISHI HIRAIWA CHAIRMAN OF KEIDANREN JAPAN'S MOST PROMINENT BUSINESS FEDERATION AND MR YELTSIN'S OFFICIAL HOST AT THE LUNCHEON EVEN WORSE JAPANESE COMPANIES OPERATING IN RUSSIA FEEL THEY ARE WORKING WITHOUT A SAFETY NET SINCE JAPAN AND RUSSIA HAVE YET TO SIGN A COMPREHENSIVE TRADE AGREEMENT THAT WOULD GUARANTEE FAVORABLE TARIFF STATUS AND OTHER LEGAL PROTECTIONS TO COMPANIES DOING BUSINESS IN RUSSIA JAPAN HAS REFUSED TO NEGOTIATE SUCH A TREATY WITH RUSSIA UNTIL THE TWO NATIONS HAVE SETTLED THEIR TERRITORIAL DISPUTE ITS ABSENCE MAKES INVESTING IN RUSSIA MUCH HARDER SAID A SPOKESMAN FOR MITSUBISHI CORP WHICH HAS MADE A NUMBER OF INVESTMENTS IN CHINA BUT ONLY A FEW IN RUSSIA JAPAN AND CHINA HAVE HAD SUCH AN AGREEMENT FOR SEVERAL YEARS PART OF THE REASON JAPANESE COMPANIES HAVE FUNNELED THEIR MONEY TOWARD CHINA JAPANESE DIRECT INVESTMENT IN CHINA NEARLY DOUBLED LAST YEAR TO 107 BILLION FROM 579 MILLION AND THE PACE SEEMS LIKELY TO CONTINUE IN A RECENT KEIDANREN SURVEY OF JAPANESE COMPANIES DOING BUSINESS IN CHINA IN FACT 68 OF THE 60 RESPONDENTS SAID THE ASIAN REGION IN WHICH THEY INTEND TO INVEST MOST HEAVILY OVER THE NEXT FIVE YEARS WILL BE CHINA THAT COMPARES WITH ONLY 11 OF THE SAME COMPANIES THAT SAID THE SAME ABOUT THEIR ASIAN INVESTMENTS OVER THE PAST FIVE YEARS FOR ALL THE DIFFICULTY OF HIS MISSION MR YELTSIN RECEIVED A WARMER WELCOME FROM HIS JAPANESE AUDIENCE THAN DID FORMER SOVIET PREMIER MIKHAIL GORBACHEV WHO ADDRESSED THE GROUP IN EARLY 1991 WHERE MR GORBACHEV STARTED HIS SPEECH BEFORE LUNCH AND PUT SOME TO SLEEP MR YELTSIN WAITED UNTIL LUNCH WAS OVER THEY CLEARLY LEARNED FROM THEIR MISTAKES SAID MR ICHIHI WE WERE IN A MUCH BETTER MOOD TO HEAR MR YELTSIN SPEAK 9310130140 931013 PEPSICO SAYS NET INCREASED 85 IN ITS 3RD PERIOD BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL PEPSICO INC HURT BY CHARGES RELATED TO NEW TAXES BUT HELPED BY SALES OF SNACK FOODS AND ALTERNATIVE BEVERAGES REPORTED A 85 GAIN IN FISCAL THIRDQUARTER NET INCOME THE BEVERAGE FOOD AND RESTAURANT CONCERN SAID EARNINGS IN THE QUARTER ENDED SEPT 4 ROSE TO 4582 MILLION OR 56 CENTS A SHARE FROM A RESTATED 4223 MILLION OR 53 CENTS A SHARE A YEAR EARLIER EXCLUDING A 37 MILLION CHARGE FOR NEW TAXES OPERATING PROFIT ROSE 17 TO 495 MILLION OR 61 CENTS A SHARE SALES AT THE COMPANY BASED IN PURCHASE NY ROSE 14 TO 631 BILLION FROM A RESTATED 555 BILLION THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS WHILE COLA SALES HAVE BEEN WEAK THIS YEAR PEPSI'S DOMESTIC SOFTDRINK BUSINESS FOR THE QUARTER WAS BOLSTERED BY ALTERNATIVE DRINKS SUCH AS ITS LIPTON ICED TEA AND MOUNTAIN DEW DOMESTIC VOLUME ROSE MORE THAN 5 FOR THE QUARTER THE COMPANY SAID DESPITE THE PRODUCTTAMPERING HOAX IN JUNE THAT TEMPORARILY HURT BUSINESS DEMAND FOR CARBONATED PRODUCTS IS OK NOT ROARING AHEAD SAID EMANUEL GOLDMAN AT PAINEWEBBER INC PEPSI HOWEVER IS BENEFITING FROM LOWER COSTS FOR ALUMINUM PACKAGING AND NUTRASWEET AN ARTIFICIAL SWEETENER HE SAID PEPSI'S INTERNATIONAL CASE SALES VOLUME GREW 6 IN THE QUARTER REFLECTING STRONG RESULTS IN THE MIDDLE EAST ASIA AND EASTERN EUROPE INTERNATIONAL BEVERAGE PROFIT WAS BOOSTED BY HIGHER CONCENTRATE PRICING AND VOLUME BUT OFFSET BY UNFAVORABLE EXCHANGE RATES IN EUROPE AND CANADA WORLDWIDE SNACKFOOD OPERATING PROFIT ROSE 19 HELPED BY GROWTH IN MEXICO AND THE UNITED KINGDOM INTERNATIONAL SNACKFOOD VOLUME ROSE 6 SPURRED IN PART BY STRONG SALES IN CANADA AND SOUTH KOREA FRITOLAY CONTINUED TO POST ROBUST DOMESTIC VOLUME GAINS OF 7 FROM STRONG SALES OF TORTILLA CHIPS ROLD GOLD PRETZELS AND LAYS POTATO CHIPS ALTHOUGH THE COMPANY MANAGED TO BOOST PRICING THAT WAS PARTIALLY OFFSET BY CUSTOMERS OPTING FOR LARGER VALUEPRICED PACKAGING THE RESTAURANT GROUP'S OPERATING PROFIT ROSE 17 AS TACO BELL AND PIZZA HUT POSTED STRONG EARNINGS GAINS IN THE US PIZZA HUT'S SAMESTORE SALES INCREASED A ROBUST 9 AS CHEESE COSTS FELL AND THE COMPANY BENEFITED FROM THE NEW BIGFOOT PIZZA AND LUNCH BUFFET SERVICE TACO BELL SAMESTORE SALES GREW 5 BENEFITING FROM HEAVY PRODUCT PROMOTIONS KFC'S WEAK RESULTS CONTINUED THE CHICKEN CHAIN'S WORLDWIDE PROFIT FELL 15 IN THE QUARTER HURT BY CONTINUING DIFFICULTY IN AUSTRALIA DOMESTIC SAMESTORE SALES FELL 2 REFLECTING IN PART STARTUP COSTS OF ITS NEW PRODUCTS ROTISSERIE CHICKEN AND SIDE DISHES SUCH AS RICE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE PEPSICO CLOSED AT 3975 UP 125 CENTS 9310130139 931013 EQUITABLE UNITS SELL DEBT NEW YORK EQUITABLE COS SAID ITS INSURANCE SUBSIDIARIES EQUITABLE LIFE ASSURANCE SOCIETY OF THE US AND EQUITABLE VARIABLE LIFE INSURANCE CO COMPLETED THE SALE OF ABOUT 700 MILLION OF PRIVATELY PLACED DEBT THE FIXED AND FLOATING RATE HIGHYIELD DEBT OBLIGATIONS WERE SOLD IN A COLLATERALIZED BOND OBLIGATION OR CBO TRANSACTION THE CBO IS A TYPE OF ASSETBACKED SECURITY THAT POOLS BONDS OF LOWER QUALITY AND ISSUES MULTIPLE SERIES OF SECURITIES AS A RESULT OF THIS AND OTHER TRANSACTIONS THE TWO UNITS HAVE REDUCED THEIR BELOW INVESTMENT GRADE PORTFOLIO TO LESS THAN 4 OF ASSETS THE CASH PROCEEDS FROM THE TRANSACTION HAVE BEEN REINVESTED BY THE UNITS MAINLY IN INVESTMENT GRADE BONDS EQUITABLE IS A DIVERSIFIED FINANCIAL SERVICES COMPANY WITH INTERESTS IN INSURANCE INVESTMENT MANAGEMENT AND INVESTMENT BANKING 9310130138 931013 BUSINESS BRIEF P&G EXPECTS TO POST RECORD EARNINGS AND UNIT VOLUME FOR ITS FIRST QUARTER CINCINNATI PROCTER & GAMBLE CO CHAIRMAN EDWIN L ARTZT ADDRESSING THE ANNUAL MEETING SAID HE EXPECTS THE COMPANY TO REPORT A STRONG FISCAL FIRST QUARTER WITH RECORD HIGHS IN UNIT VOLUME AND EARNINGS MR ARTZT SAID THE CONSUMER PRODUCTS COMPANY EXPECTS TO REPORT A VERY SUBSTANTIAL PROFIT INCREASE FOR THE PERIOD ENDED SEPT 30 IN THE YEARAGO QUARTER P&G EARNED 431 MILLION OR 60 CENTS A SHARE REFLECTING A ONETIME AFTERTAX RESERVE OF 200 MILLION FOR THE CLOSING OF JUICE PLANTS SALES WERE 788 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY P&G CLOSED AT 50375 UP 625 CENTS MR ARTZT UPDATING P&G'S RESTRUCTURING PROGRAM WHICH WAS ANNOUNCED IN JULY SAID THE COMPANY EXPECTS TO IDENTIFY BY YEAR'S END SOME OF THE PLANTS IT PLANS TO CLOSE MR ARTZT SAID THAT ABOUT 30 OF P&G'S 147 PLANTS WILL BE CLOSED BECAUSE THE COMPANY HAS TOO MUCH CAPACITY THE RESTRUCTURING WHICH INCLUDES ELIMINATING 13000 JOBS OR 12 OF THE WORK FORCE IS EXPECTED TO GENERATE 500 MILLION A YEAR IN AFTERTAX SAVINGS BY THE 1996 FISCAL YEAR MR ARTZT SAID THAT P&G'S GLOBALIZATION STRATEGY IS PAYING OFF WE EXPECT INTERNATIONAL'S SHARE OF SALES TO REACH 60 BY THE YEAR 2000 HE SAID MR ARTZT ADDED WITH ALL THIS GOOD NEWS WHY ISN'T OUR STOCK DOING BETTER HE NOTED THAT AT LAST YEAR'S ANNUAL MEETING IN OCTOBER 1992 P&G'S COMMON WAS AT 50 A SHARE WHICH IS ABOUT WHERE IT IS TODAY AND CITED MARKET CONCERNS ABOUT THE ENTIRE CONSUMER PRODUCTS INDUSTRY P&G HAS BEEN REDUCING PRICES IN SOME PRODUCT CATEGORIES TO ADDRESS GROWING COMPETITION FROM LESSEXPENSIVE PRIVATELABEL PRODUCTS AND BRANDS MR ARTZT SAID AS A RESULT OF PRICE REDUCTIONS HE SAID MARKET SHARES OF RIVAL LOWPRICE BRANDS AND PRIVATE LABELS IN OUR CATEGORIES GREW AN AVERAGE OF ONLY 2 DURING THE PAST SIX MONTHS 9310130137 931013 NOBEL ECONOMISTS ON INSTITUTIONS AND SLAVERY DOUGLASS NORTH AND ROBERT FOGEL WON THE NOBEL PRIZE FOR ECONOMICS YESTERDAY FOR USING MODERN STATISTICAL METHODS TO REEXAMINE HOW ECONOMIES DEVELOPED IN THE PAST A RELATED EDITORIAL APPEARS TODAY SEE RELATED ARTICLE REVIEW & OUTLOOK EDITORIAL CHICAGO RULES WSJ OCT 13 1993 FROM INSTITUTIONS AND ECONOMIC THEORY AN ESSAY BY MR NORTH IN THE SPRING 1992 EDITION OF THE AMERICAN ECONOMIST IT IS EXCEPTIONAL TO FIND ECONOMIC MARKETS THAT APPROXIMATE THE CONDITIONS NECESSARY FOR EFFICIENCY IT IS IMPOSSIBLE TO FIND POLITICAL MARKETS THAT DO BECAUSE IT IS THE POLITY THAT DEFINES AND ENFORCES PROPERTY RIGHTS IT IS NOT SURPRISING THAT EFFICIENT ECONOMIC MARKETS ARE EXCEPTIONAL MOREOVER ONCE AN ECONOMY IS ON AN INEFFICIENT PATH THAT PRODUCES STAGNATION IT CAN PERSIST AND HISTORICALLY HAS PERSISTED BECAUSE OF THE NATURE OF PATH DEPENDENCE FROM TIME ON THE CROSS THE ECONOMICS OF AMERICAN SLAVERY 1974 BY MR FOGEL AND STANLEY ENGERMAN 9310130136 931013 COMMODITIES CORN PRICES ARE EXPECTED TO RISE AS GOVERNMENT LOWERS ITS MONTHLY HARVEST FORECAST BY 37 BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO US CORN PRICES ARE EXPECTED TO RISE TODAY BECAUSE THE AGRICULTURE DEPARTMENT LOWERED ITS MONTHLY FORECAST OF THE APPROACHING CORN HARVEST BY 37 TO 696 BILLION BUSHELS THIS IS THE FOURTH CONSECUTIVE MONTH THAT THE GOVERNMENT HAS TRIMMED ITS PROJECTION OF THE NATION'S BIGGEST CROP TO ACCOUNT FOR RECORD SUMMER RAIN AND FLOODING ACROSS THE MIDWEST THE NEW FORECAST WHICH IS BASED ON SURVEYS AROUND OCT 1 IS 27 SMALLER THAN LAST YEAR'S RECORD 948 BILLION BUSHEL CORN HARVEST THE GOVERNMENT'S CORN FORECAST IS SMALLER THAN EXPECTED BY MOST GRAIN ANALYSTS AND IT SIGNALS THAT US CORN PRODUCTION WILL FALL BELOW THE SEVEN BILLION BUSHELS LEVEL FOR THE FIRST TIME SINCE THE DEVASTATING 1988 DROUGHT THE AGRICULTURE DEPARTMENT ALSO CUT ITS MONTHLY ESTIMATE OF 1993 WHEAT PRODUCTION BY 28 TO 242 BILLION BUSHELS FROM ITS SEPTEMBER ESTIMATE AMONG OTHER THINGS THE MOVE REFLECTS THE OUTBREAK OF A MOLD IN THE SPRING WHEAT CROP OF MINNESOTA AND NORTH DAKOTA SOME WHEAT FIELDS ARE SO WIDELY CONTAMINATED THAT THEY CANNOT BE HARVESTED THE CROP REPORT WAS RELEASED AFTER THE CLOSE OF TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT THERE FOR DECEMBER DELIVERY ROSE 475 CENTS A BUSHEL TO SETTLE AT 32675 A BUSHEL TRADERS SAID WHEAT PRICES ROSE AMID SPECULATION THAT THE CLINTON ADMINISTRATION IS CONSIDERING WHETHER TO MAKE CHINA ELIGIBLE FOR EXPORT CREDIT GUARANTEES UNDER THIS PROGRAM THE AGRICULTURE DEPARTMENT ENCOURAGES BANKS TO FINANCE FOREIGN PURCHASES OF US CROPS BY GUARANTEEING REPAYMENT OF SOUR LOANS IT IS UNDER THIS PROGRAM THAT THE DEPARTMENT HAS PAID INTERNATIONAL BANKERS MORE THAN 1 BILLION TO MAKE GOOD ON LOAN PAYMENTS MISSED BY MOSCOW BASED ON OCT 1 CONDITIONS THE AGRICULTURE DEPARTMENT LOWERED ITS MONTHLY SOYBEAN HARVEST ESTIMATE BY ABOUT 1 TO 189 BILLION BUSHELS FROM ITS SEPTEMBER ESTIMATE OF 191 BILLION BUSHELS THE NEW FORECAST WHICH WAS ON THE HIGH END OF THE RANGE EXPECTED BY GRAIN TRADERS SIGNALS A US SOYBEAN HARVEST 14 SMALLER THAN LAST YEAR'S CROP THE DEPARTMENT PROJECTED THE US OATS HARVEST TO SHRINK NEARLY 30 TO 208 MILLION BUSHELS FROM THE 295 MILLION BUSHELS HARVESTED LAST YEAR THE GOVERNMENT PROJECTED THE FLORIDA ORANGE CROP TO DROP 78 TO 172 MILLION BOXES FROM LAST YEAR'S HARVEST THE STATE'S GRAPEFRUIT CROP IS EXPECTED TO DECLINE 11 TO 49 MILLION BOXES PRICES OF MOST CORN FUTURES CONTRACTS EASED LOWER DURING YESTERDAY'S SESSION THE CORN CONTRACT FOR DECEMBER DELIVERY SLIPPED 025 CENT A BUSHEL TO SETTLE AT 244 A BUSHEL THE GOVERNMENT REDUCED ITS CORN HARVEST ESTIMATE PRIMARILY TO REFLECT ROUGHLY 800000 ACRES OF FIELDS IN SUCH POOR CONDITION THAT FARMERS ARE DESTROYING THEM TO QUALIFY FOR GOVERNMENT PAYMENTS THE AGRICULTURE DEPARTMENT IS FORECASTING US CORN FARMERS TO HARVEST 631 MILLION ACRES IN THE COMING WEEKS COMPARED WITH 721 MILLION ACRES LAST YEAR THE GOVERNMENT'S NEW CORN HARVEST FORECAST SUGGESTS HIGHER PRICES NEXT YEAR US CORN STOCKS ARE EXPECTED TO SHRINK TO AN UNCOMFORTABLY TIGHT 109 BILLION BUSHELS BY THE TIME THE 1994 CORN HARVEST REPLENISHES SUPPLIES LARGE DOMESTIC STOCKPILES AND WEAK EXPORT DEMAND HAVE COMBINED THIS YEAR TO DAMPEN ANY SUSTAINED RALLY LINKED TO THE MIDWEST CROP DISASTER IN OTHER COMMODITY MARKETS PRECIOUS METALS GOLD AND SILVER FUTURES PRICES SOARED IN A TECHNICALLY DRIVEN RALLY AS NEW YORKBASED COMMODITY FUNDS PILED INTO THE PRECIOUS METALS MARKETS TRADERS SAID GOLD FOR DECEMBER DELIVERY SURGED 750 TO SETTLE AT 36920 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE SILVER FOR DECEMBER DELIVERY SHOT UP 11 CENTS TO SETTLE AT 444 AN OUNCE ON THE COMEX THE MARKET STARTED TO CLIMB EARLY IN THE MORNING MOSTLY ON TECHNICALS OR ON THE BASIS OF HISTORIC CHART PATTERNS SAID SCOTT MEYERS SENIOR COMMODITY ANALYST WITH REDEL TRADING IN NEW YORK THEN THE FUNDS CAME IN THAT IS ONCE WE STARTED REACHING KEY RESISTANCE LEVELS IN GOLD AT 365 ON THE DECEMBER CONTRACT AND AT 440 IN THE DECEMBER SILVER CONTRACT MR MEYERS SAID THAT BOTH MARKETS ON A TECHNICAL BASIS ARE POISED TO GO HIGHER AT THIS POINT AFTER A HUGE ONEDAY GAIN IN THE GOLD MARKET WE NEED TO SEE WHAT KIND OF FOLLOWTHROUGH THERE MIGHT BE BEFORE BECOMING BULLISH FOR THE LONG TERM WE'LL SEE THE NEXT RESISTANCE LEVEL FOR DECEMBER GOLD AT 377378 AND RESISTANCE FOR DECEMBER SILVER AT 480490 IN ADDITION TO TECHNICAL FACTORS SOME ANALYSTS CITED RENEWED BUYING OF BOTH SILVER AND GOLD BY MIDDLE EASTERN INTERESTS AS MAJOR SPURS TO YESTERDAY'S RALLY THE REBOUND IN CRUDEOIL PRICES HAS IMPROVED THE CASHFLOW SITUATION IN THE MIDDLE EAST ENABLING INVESTORS THERE TO COME BACK IN AS BUYERS OF SILVER AND THEN GOLD SAID BERNARD SAVAIKO A SENIOR COMMODITY ANALYST WITH PAINEWEBBER BUT HE CAUTIONED DEMAND FOR GOLD FROM THE ALLIMPORTANT FAR EAST MARKETS HAS YET TO RESURFACE ASIAN DEMAND PARTICULARLY FROM CHINA HELPED SPAWN GOLD'S STRONG RALLY THIS SPRING AND EARLY SUMMER BUT THE SHARPLY HIGHER PRICES FOR THE YELLOW METAL AT LEVELS ABOVE 400 AN OUNCE IN EARLY AUGUST APPARENTLY DETERRED FURTHER BUYING OF BULLION AMONG PRICESENSITIVE CUSTOMERS IN CHINA AND ELSEWHERE IN THE REGION TRADERS SAID ENERGY CRUDEOIL AND HEATINGOIL FUTURES PRICES SETTLED LOWER IN LIGHT TRADING YESTERDAY ENDING A WEEKLONG UPWARD TREND BUT GASOLINE PRICES ROSE CONTINUING A FIFTHSTRAIGHT DAY OF INCREASES THE RISES WERE DRIVEN BY TECHNICAL TRADING AND TIGHT SUPPLIES IN SOME REGIONS TRADERS SAID A SPIKE IN GASOLINE FUTURES PRICES LATE IN THE TRADING DAY CAUSED OIL PRICES ACROSS THE BOARD TO RISE BUT THEY DECLINED WHEN TRADERS IN THE GASOLINE PIT TOOK PROFITS BY SELLING THEIR GASOLINE CONTRACTS TRADERS SAID THE BULLISH TONE OF THE MARKET WAS OFFSET BY THE BELIEF THAT SUPPLIES WERE AMPLE AND THAT US INVENTORIES WOULD GROW AND INDEED STATISTICS RELEASED BY THE AMERICAN PETROLEUM INSTITUTE AFTER TRADING YESTERDAY SHOWED CRUDE STOCKS LAST WEEK INCREASING BY 199 MILLION BARRELS TO 33085 MILLION BARRELS GASOLINE INVENTORIES GROWING BY 195 MILLION BARRELS TO 21038 MILLION BARRELS AND DISTILLATE STOCKS RISING BY 100 MILLION BARRELS TO 12838 MILLION BARRELS 9310130135 931013 LAW COURT TO DECIDE RAILROAD LIABILITY IN EMOTIONAL HARM BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT AGREED TO DECIDE WHETHER RAILROAD WORKERS MAY SUE THEIR EMPLOYERS FOR EMOTIONAL DISTRESS CAUSED BY JOB PRESSURES SPECIFICALLY THE JUSTICES WILL REVIEW TWO RULINGS BY THE FEDERAL APPEALS COURT IN PHILADELPHIA THAT SAID RAILROADS MAY BE SUED FOR NEGLIGENTLY CAUSING EMOTIONAL INJURIES THAT WERE REASONABLY FORESEEABLE CONRAIL CORP THE PHILADELPHIABASED FREIGHT CARRIER APPEALED THE LOWERCOURT RULINGS CONRAIL ARGUED THAT THE PHILADELPHIA COURT'S APPROACH COULD ALLOW EVERY RAILROAD LABORER WHO WORKS UNDER DIFFICULT STRESSFUL CONDITIONS TO SUE HIS OR HER EMPLOYER PUBLIC TRANSIT AUTHORITIES IN NEW JERSEY AND PENNSYLVANIA FILED A SEPARATE BRIEF SUPPORTING CONRAIL'S APPEAL THE CASE INVOLVES THE SCOPE OF THE FEDERAL EMPLOYERS' LIABILITY ACT WHICH PROVIDES THE EXCLUSIVE MEANS FOR RAILROAD EMPLOYEES TO SUE THEIR EMPLOYERS FOR WORKRELATED INJURIES SOME OTHER FEDERAL APPEALS COURTS HAVE INTERPRETED THE ACT AS PROVIDING WORKERS WITH LESS PROTECTION AGAINST EMOTIONAL HARM THE CONFLICT AMONG THE LOWER COURTS APPARENTLY PROMPTED THE SUPREME COURT TO AGREE TO HEAR THE CONRAIL APPEAL SEPARATELY THE JUSTICES DECLINED TO CONSIDER WHETHER A LOWER COURT ERRED IN ORDERING VARIOUS COMPANIES TO REIMBURSE THE GOVERNMENT FOR CLEANING UP A HAZARDOUS WASTE SITE TWO DOZEN COMPANIES IN A VARIETY OF INDUSTRIES HAD ARGUED THAT THE LOWERCOURT RULING IF UPHELD NATIONWIDE WOULD EFFECTIVELY BLOCK FIRMS FROM CHALLENGING FEDERAL CLEANUP EFFORTS THEY CONSIDER UNNECESSARY OR WASTEFUL IN THE PARTICULAR CASE AT ISSUE FEDERAL OFFICIALS DEMANDED MORE THAN 14 MILLION FROM COMPANIES THAT DISPOSED OF HAZARDOUS WASTE AT A SITE IN RURAL MCCLAIN COUNTY OKLA THE FEDERAL APPEALS COURT IN DENVER AFFIRMED A TRIAL JUDGE'S ORDER THAT THE COMPANIES MUST PAY THE MONEY TO REIMBURSE THE GOVERNMENT FOR STUDIES AND OTHER EXPENDITURES RELATED TO THE OKLAHOMA SITE AMONG THE COMPANIES APPEALING TO THE SUPREME COURT WERE ALLIEDSIGNAL INC EXXON CORP AND WESTINGHOUSE ELECTRIC CORP THE CLINTON ADMINISTRATION DEFENDED THE APPEALS COURT DECISION STRESSING A STATUTORY PROVISION THAT AUTHORIZES THE US TO RECOVER ALL COSTS OF CLEANUP EFFORTS ADVANCE CHEMICAL CO VS US 9310130133 931013 DANIELI'S WEAN PURCHASE CLOSES YOUNGSTOWN OHIO DANIELI CORP CLOSED ITS PURCHASE OF WEAN INC'S ENGINEERING AND MANUFACTURING ASSETS A SPOKESMAN SAID AND FORMED A UNIT TO MARKET ENGINEER AND SUPPLY THE PRODUCTS IT ACQUIRED ALSO DANIELI WEAN INC THE NEWLY FORMED UNIT SAID IN A NEWS RELEASE THAT RJ WEAN III FORMERLY PRESIDENT OF THE WEAN INDUSTRIES DIVISION WAS NAMED PRESIDENT OF DANIELI WEAN MR WEAN SAID THE NAMES OF WEAN INC AND WEAN CANADA LTD WILL BE CHANGED TO AVOID CONFUSION DANIELI CORP IS A NEW HOLDING COMPANY FOR THE US INTERESTS OF DANIELI & C SPA BUTTRIO ITALY WEAN A MAKER OF STEEL PROCESSING MACHINERY IS BASED IN PITTSBURGH 9310130132 931013 SOME MIGHT CONTEND THAT A PLANT YOU CULTIVATE ISN'T REALLY A WEED BY SHARON MASSEY STAFF REPORTER OF THE WALL STREET JOURNAL WHEN YOU STRIVE TO GROW WEEDS SOMETIMES YOU HAVE TO DEFLOWER THE GARDEN THEN TOO WEEDS DON'T SIMPLY SPROUT LIKE ER WEEDS AS JANE BROWN SAYS WEEDS ARE ONE OF THE HARDEST CROPS TO GET GOING IF YOU GIVE THEM TOO MUCH CARE THEY SOMETIMES JUST WON'T GROW MS BROWN'S JOB IS NOTHING TO SNEEZE AT WELL IT REALLY IS SORT OF SHE IS POLLEN FACILITY COORDINATOR FOR A DIVISION OF MILES INC A PITTSBURGHBASED UNIT OF GERMAN CHEMICAL GIANT BAYER AG SHE AND FOUR COWORKERS IN MONMOUTH ORE TEND 130 ACRES OF POLLENPRODUCING PLANTS 30 OR 40 ACRES OF WHICH BLOOM WITH ENGLISH PLANTAIN LAMB'SQUARTERS REDROOT PIGWEED COCKLEBURS AND ABOUT 60 OTHER SPECIES OF WEEDS USED BY RESEARCHERS TRYING TO EASE THE WHEEZE OF ALLERGY SUFFERERS AT THE ALLERGYTREATMENT DIVISION OF MILES'S LAB IN SPOKANE WASH THE WEED POLLEN IS MADE INJECTABLE AND THEN ADMINISTERED TO PATIENTS IN AN EFFORT TO BUILD UP THEIR IMMUNITIES TO VARIOUS POLLENS WEEDS HAVE BEEN NURTURED AT THE MILES FARM SINCE 1978 AND AT A NUMBER OF OTHER WEED FARMS THAT HAVE SPROUTED UP IN RECENT YEARS THE ALLERGON INC UNIT OF SWEDEN'S PROCORDIA AB FOR INSTANCE HAS FARMED 15 TO 20 ACRES OF WEEDS IN CARTHAGE MO FOR THE PAST SIX YEARS DAVID GOERING AN ALLERGON BOTANIST CITES ANOTHER WEEDFARMING PROBLEM WE'RE STILL USING WILD SEED WHICH MEANS OUR CROPS AREN'T UNIFORM FOR HARVESTING BUT WORTHY WEEDS DO HAVE THE PLANTWORLD DISTINCTION OF USUALLY BEING HANDPICKED BY WORKERS WHO OFTEN WEAR MASKS EVEN THOUGH MOST OF THEM DON'T SUFFER FROM ALLERGIES IT WOULD BE PRETTY HARD TO WORK FOR A POLLEN FACILITY WITH ALLERGIES SAYS MS BROWN IF SOMEONE HAS BAD ALLERGIES THEY DON'T APPLY FOR A JOB AT OUR FACILITY COMPANIES HAVE FOUND PROFESSIONAL WEED FARMING TO BE MORE COSTEFFECTIVE THAN TRYING TO FIND THEM IN THE WILD OR EVEN IN MOST PEOPLE'S GARDENS FOR THAT MATTER MS BROWN SAYS IT WOULD COST US A LOT TO SEND PEOPLE OUT IN VEHICLES TO GO ALONG ROADSIDES LOOKING FOR A FEW WEEDS HERE AND THERE THIS WAY WE CAN PLANT AN ACRE OF WEEDS COLLECT THEM DAY AFTER DAY AS THEY CONTINUE TO BLOOM AND KEEP BETTER TRACK OF THEM BY HAVING THEM GROWN HERE AT OUR FACILITY STILL THE SAME TROUBLE THAT PLAGUES BACKYARD GARDENERS CROPS UP AT WEED FARMS MS BROWN SAYS THAT WHEN TRYING TO GET SPECIFIC SPECIES TO THRIVE WE HAVE TROUBLE WITH OTHER WEEDS COMPETING 9310130128 931013 WORLD MARKETS NIKKEI SINKS ON SHIFT IN FUNDS DUE TO NEW INDEX SHARES EASE IN LONDON END RALLY IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO'S BENCHMARK INDEX SANK 12 TUESDAY AS STOCKHOLDERS UNLOADED ISSUES THAT WON'T BE INCLUDED IN THE NEW NIKKEI 300STOCK INDEX THOUGH THE BROADER MARKET HAD ONLY SMALL LOSSES LONDON SHARE PRICES EASED AGAIN AS PROFITTAKING AND NEGATIVE CORPORATE NEWS DAMPED ENTHUSIASM AND FRANKFURT STOCKS RETREATED ENDING A SIXSESSION RALLY THAT HAD SET A STRING OF RECORD HIGHS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11342 UP 013 REFLECTING HIGHER MARKETS IN ALL REGIONS BIOTECHNOLOGY STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 7449 UP 206 OR 28 WITH CENTOCOR OF THE US POSTING A 27 GAIN IN ITS LOCAL CURRENCY COAL STOCKS TRAILED AT 10498 DOWN 278 OR 26 WITH MITSUI MINING OF JAPAN SLIDING 65 IN LOCAL CURRENCY IN TOKYO FOLLOWING A MONDAY HOLIDAY CLOSURE THE NIKKEI 225STOCK INDEX WHICH GAINED 11301 POINTS FRIDAY SKIDDED 24133 TO 2013731 NEAR THE SESSION LOW OF 2011671 ON WEDNESDAY THE NIKKEI FELL 11871 POINTS TO CLOSE THE MORNING SESSION AT 2001860 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 220 MILLION SHARES DOWN FROM 3184 MILLION SHARES IN THE PREVIOUS SESSION LOSERS OVERWHELMED GAINERS 643347 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES DECLINED 414 POINTS TO 165226 INVESTORS AND ANALYSTS COUNSELED WATCHING THE TOPIX FOR UNDERLYING TRENDS AND MARKET STRENGTH BECAUSE NIHON KEIZAI SHIMBUN WHICH COMPILES THE NIKKEI 225STOCK AVERAGE LAST FRIDAY ANNOUNCED THE DEVELOPMENT OF A NEW WEIGHTED MARKET GAUGE THE NIKKEI 300 WHICH IS EXPECTED TO BEGIN DERIVATIVESCONTRACT TRADING IN OSAKA IN EARLY 1994 THE 225STOCK AVERAGE WAS CONSIDERED ALREADY A BIT UNRELIABLE AS A MARKET BAROMETER BECAUSE OF THE SHIFTS OF FUNDS AND REORIENTING OF INVESTMENT TRUST FUND PORTFOLIOS INTO THE COMPANIES THAT ARE TO MAKE UP THE 300SHARE INDEX TOKYO SHARES INITIALLY FELL STEEPLY AND THEN HELD MOSTLY STEADY AMID FEW TRADING INCENTIVES IN LIGHT OF TUESDAY'S SOCALLED NEWSPAPER HOLIDAY IN JAPAN MARKETMOVING CORPORATE NEWS GENERALLY ORIGINATES FROM NEWS REPORTS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 75 POINTS TO 30947 AFTER HAVING POSTED A 13POINT GAIN EARLIER IN THE DAY THE FT 30STOCK INDEX DROPPED 79 POINTS TO 23508 VOLUME WAS 5368 MILLION SHARES UP FROM 4443 MILLION SHARES A DAY EARLIER WITH LITTLE POSITIVE NEWS EMERGING INVESTORS CONTINUED TO DWELL ON CORPORATIONS' CAUTIOUS STATEMENTS ABOUT THEIR TRADING OUTLOOK SOME INVESTORS ARE LYING LOW THIS MONTH FEARING A SETBACK AS GLOBAL STOCK MARKETS ARE TRADING AT FAIRLY HIGH VALUATIONS SENTIMENT ALSO WAS SOURED BY A GROWING BELIEF THAT A PROPOSAL IN NEXT MONTH'S BRITISH BUDGET STATEMENT TO CUT THE BASE LENDING RATE WON'T BE AS BIG AS HOPED FOR IN FRANKFURT THE DAX 30STOCK INDEX FELL 1241 POINTS TO 199861 HALTING A RALLY THAT HAD BEGUN OCT 4 AND BOOSTED THE INDEX 52 TRADING WAS QUIET AS PARTICIPANTS AWAITED A GERMAN COURT RULING ON THE MAASTRICHT TREATY FOR EUROPEAN COMMUNITY UNIFICATION THE MIDDAY DECISION THAT THE ACCORD IS CONSTITUTIONAL WHICH GIVES THE GREEN LIGHT FOR RATIFICATION DIDN'T CAUSE ANY STRONG REACTION ON THE STOCK MARKET GERMAN AND FOREIGN INSTITUTIONAL INVESTORS WHO HAVE BEEN BOOSTING THEIR WEIGHTINGS IN GERMAN SHARES RECENTLY WERE MOSTLY ABSENT AND DEALINGS WERE DOMINATED BY PROFESSIONAL TRADERS IN PARIS STOCKS FELL AS INVESTORS CONSOLIDATED RECENT GAINS IN MILAN PRICES FELL DRIVEN DOWN BY TECHNICAL FACTORS AND A MOVE OUT OF ORDINARY SHARES AND INTO SAVINGS SHARES OF ITALIAN PRIVATIZATION CANDIDATES BUT IN STOCKHOLM EQUITIES CLIMBED TO A NEW 1993 HIGH FOR THE THIRD STRAIGHT SESSION SPURRED BY GAINS IN PHARMACEUTICAL AND TELECOMMUNICATIONS STOCKS IN SYDNEY A TWOWEEK RALLY THAT HAD PILED UP SIXYEAR HIGHS WAS HALTED BY PROFITTAKING AND THE ABSENCE OF OVERSEAS BUYERS AND STOCKS DECLINED THOUGH THE PAUSE WASN'T CONSIDERED A SERIOUS CORRECTION BUT IN HONG KONG THE MARKET SCORED ANOTHER RECORD HIGH THOUGH IT FINALLY REACTED TO UNFAVORABLE POLITICAL DEVELOPMENTS AND DUMPED MUCH OF THE EARLY GAINS IN THE FIRST HOUR THE BLUECHIP HANG SENG INDEX SURGED 12 LED BY CONTINUED OVERSEAS BUYING INTEREST BUT PEAKED THERE A 13TH ROUND OF SINOBRITISH TALKS ON HONG KONG ELECTORAL REFORM ENDED AND HANG SENG INDEX FUTURES DROPPED SOLIDLY WHICH PULLED THE UNDERLYING INDEX LOWER SINGAPORE SHARES ALSO CLIMBED TO A RECORD FINISH EVEN AFTER FALLING FROM THE DAY'S HIGHS IN HECTIC TRADING ON EXPECTATIONS THAT LOWERPRICED ISSUES WILL BE THE MAIN TARGET FOR NEWLY RELEASED PENSIONFUND MONEY IN TAIPEI STOCKS SURGED IN HEAVY TRADING AMID OPTIMISTIC SENTIMENT THAT THE TAIWAN PARLIAMENT'S FINANCE COMMITTEE WOULD APPROVE CUTS IN THE SECURITIES TRANSACTION TAX IN MANILA EQUITIES JUMPED 33 INTO RECORD TERRITORY FOR THE SECOND CONSECUTIVE DAY DRIVEN BY PHILIPPINE LONG DISTANCE TELEPHONE CO WHICH JUMPED 145 PESOS OR 95 TO 1665 PESOS 5967 AFTER SURGING IN NEW YORK ON A BELIEF THAT THE STOCK IS CHEAP COMPARED WITH OTHER REGIONAL TELECOMMUNICATIONS ISSUES GAINS FOR THE PHONE ARENA IN WELLINGTON PUSHED STOCKS THERE UP 15 TO A NEW 1993 HIGH AMONG CORPORATE DEVELOPMENTS IN TOKYO TAKASHIMAYA ROSE 10 YEN TO 1260 YEN 1189 AFTER THE MARKET CLOSED THE DEPARTMENT STORE COMPANY REPORTED THAT UNCONSOLIDATED OR PARENTCOMPANY PRETAX PROFIT FOR THE SIX MONTHS ENDED AUG 31 PLUNGED 89 TO 380 MILLION YEN 36 MILLION FROM A YEAR EARLIER IN LONDON GRANADA GROUP RALLIED 15 PENCE OR 32 TO 487 PENCE 748 AND PEARSON JUMPED 14 OR 27 TO 542 GRANADA A LEISURE COMPANY THAT OWNS 14 OF THE BSKYB TELEVISION SATELLITE TELEVISION CONCERN AND PEARSON A PUBLISHER THAT HOLDS 18 GAINED ON A BULLISH PROFIT FORECAST FOR BSKYB THE LARGEST SHAREHOLDER OF WHICH IS AUSTRALIABASED NEWS CORP RUN BY RUPERT MURDOCH WHICH SAID THE TV OPERATION IS EXPECTED TO EARN AT LEAST 180 MILLION 2766 MILLION IN THE YEAR ENDING JUNE 30 COMPARED WITH 541 MILLION OF PRETAX PROFIT A YEAR EARLIER GUINNESS LOST 7 OR 17 TO 396 THE DISTILLER SAID CRISPIN DAVIS MANAGING DIRECTOR OF THE COMPANY'S BIGGEST UNIT UNITED DISTILLERS RESIGNED HIS DIRECTORSHIPS AND EXECUTIVE DUTIES CITING A CONFLICT IN STYLE AND MANAGEMENT APPROACH WITH CHAIRMAN ANTHONY GREENER A SUCCESSOR WASN'T NAMED SUN ALLIANCE GROUP DROPPED 5 OR 13 TO 392 THE LIFE AND GENERAL INSURER IS PLACING 125 MILLION IN PREFERENCE SHARES TO STRENGTHEN ITS CAPITAL BASE AND EXPAND ITS BUSINESS AND REITERATED THAT IT EXPECTS TO RETURN TO PROFITABILITY THIS YEAR IN THE FIRST HALF SUN ALLIANCE HAD PROFIT OF 617 MILLION COMPARED WITH A YEAREARLIER LOSS OF 979 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 9310130127 931013 FLORIDA APPOINTS SPECIAL INVESTIGATOR IN ITS MET LIFE PROBE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE FLORIDA INSURANCE DEPARTMENT STEPPED UP ITS INVESTIGATION OF METROPOLITAN LIFE INSURANCE CO NAMING A SPECIAL INVESTIGATOR AND BRINGING IN THE STATE'S ATTORNEY GENERAL TO PROBE THE COMPANY'S QUESTIONABLE SALES PRACTICES MET LIFE CRITICIZED AS UNACCEPTABLE THE ATTORNEY PICKED AS THE SPECIAL INVESTIGATOR SIGNALING A MOVE BY THE BIG INSURANCE COMPANY TO DEFEND ITSELF MORE AGGRESSIVELY AGAINST THE STATE'S CHARGES MET LIFE HAD PREVIOUSLY BEEN COOPERATING WITH THE STATE MAKING OFFERS TO SETTLE THE DISPUTE THE COMPANY VOLUNTEERED TO REFUND PREMIUMS PAID BY 18000 CUSTOMERS WHO BOUGHT POLICIES FROM ITS TAMPA OFFICE HOWEVER YESTERDAY MET LIFE SAID IT IS NOW GEARING UP TO FIGHT THE ACCUSATIONS IN A LEGAL ARENA WHETHER IT BE IN THE COURTS OR IN A STATE ADMINISTRATIVE PROCEEDING FLORIDA INSURANCE COMMISSIONER TOM GALLAGHER APPOINTED THOMAS TEW A MIAMI LITIGATOR TO SPEARHEAD THE STATE'S PROBE INTO MET MR GALLAGHER ALSO ENLISTED THE ASSISTANCE OF STATE ATTORNEY GENERAL MALCOLM BUTTERWORTH WHO HAS SUBPOENA POWER AT A NEWS CONFERENCE YESTERDAY MR BUTTERWORTH SAID HE IS PREPARED TO REQUEST DOCUMENTS FROM THROUGHOUT THE COMPANY MR BUTTERWORTH SAID THAT THUS FAR THERE IS NO EVIDENCE SUGGESTING CRIMINAL WRONGDOING ON THE PART OF THE NATION'S SECONDBIGGEST INSURANCE COMPANY BUT THAT HE IS RESERVING JUDGMENT UNTIL AFTER MR TEW'S INVESTIGATION MET LIFE HAD LAST WEEK AGREED TO FUND THE STATE'S INQUIRY INTO ITS SALES PRACTICES AS LONG AS THE INVESTIGATOR WAS CONSIDERED ACCEPTABLE TO BOTH MET AND THE FLORIDA INSURANCE DEPARTMENT BUT MET LIFE SAID MR TEW CAN IN NO WAY BE VIEWED AS A DISINTERESTED THIRD PARTY THE COMPANY CITED MR TEW'S REPRESENTING THE FLORIDA INSURANCE DEPARTMENT IN A CLASSACTION LAST YEAR IN WHICH MET WAS ONE OF THE DEFENDANTS WHILE CONCEDING THAT HE HAS MADE CAMPAIGN CONTRIBUTIONS TO MR GALLAGHER'S LAST TWO ELECTIONS MR TEW SAID HIS RELATIONSHIP WITH MR GALLAGHER WILL NOT BIAS HIS PROBE MR TEW DENIED THAT HIS ROLE IN A LAWSUIT AGAINST MET AND SEVERAL OTHER DEFENDANTS DEMONSTRATES HIS HOSTILITY TO THE BIG INSURER I CERTAINLY HAVE AN OPEN MIND IN REGARD TO MET HE SAID FLORIDA HAS ACCUSED MET'S TAMPA OFFICE OF DEFRAUDING POLICYHOLDERS BY MISREPRESENTING LIFE INSURANCE WHICH CARRIES SALES COMMISSIONS EQUAL TO 96 OF THE FIRST YEAR OF PAYMENTS AS RETIREMENT ACCOUNTS THE STATE SAID MET WAS AWARE OF THE PRACTICES AND DID NOTHING TO STOP THEM A CHARGE MET DENIES THE TAMPA OFFICE WHICH COLLECTED 20 MILLION IN PREMIUMS LAST YEAR IS MET'S LARGEST SALES OFFICE MR TEW 53 YEARS OLD IS CURRENTLY THE COURTAPPOINTED RECEIVER FOR ESM GOVERNMENT SECURITIES INC WHICH ALONG WITH AFFILIATES DEFRAUDED INVESTORS OF 315 MILLION HE IS ALSO RECEIVER FOR PREMIUM SALES CORP A HIGHFLYING FOOD TRADING CONCERN IN NORTH MIAMI BEACH WHICH ALLEGEDLY DEFRAUDED INVESTORS OUT OF MORE THAN 300 MILLION SEPARATELY MET'S LIFEINSURANCE DIVISION WITHDREW ITS APPLICATION FROM THE 1993 MALCOLM BALDRIGE NATIONAL QUALITY AWARDS CITING THE SITUATION IN FLORIDA MET WHICH SPENT TWO YEARS PREPARING ITS APPLICATION BELIEVED ITSELF TO BE A FINALIST FOR THE COMMERCE DEPARTMENT'S PRESTIGIOUS AWARD WHOSE WINNERS WILL BE ANNOUNCED NEXT WEEK 9310130126 931013 INTERNATIONAL MAASTRICHT TREATY DOESN'T CONFLICT WITH GERMAN LAW COURT SAYS RULING PAVES WAY FOR EC'S CONTESTED PACT TO COME INTO FORCE NEXT MONTH BY MARK M NELSON AND CHARLES GOLDSMITH STAFF REPORTERS OF THE WALL STREET JOURNAL GERMANY'S HIGHEST COURT DECLARED THAT THE MAASTRICHT TREATY IS COMPATIBLE WITH THE GERMAN CONSTITUTION PAVING THE WAY FOR THE HIGHLY CONTESTED PACT TO COME INTO FORCE ACROSS THE EUROPEAN COMMUNITY ON NOV 1 THE EIGHTJUDGE PANEL OF THE FEDERAL CONSTITUTIONAL COURT IN KARLSRUHE REJECTED ARGUMENTS THAT THE EC TREATY WAS UNDEMOCRATIC OR THAT IT ROBBED GERMANY OF ITS BASIC SOVEREIGN RIGHTS ALTHOUGH THEY ATTACHED SOME RESERVATIONS TO THEIR 85PAGE RULING THE JUDGES SAID THAT GERMANY THE ONLY EC MEMBER THAT HASN'T RATIFIED THE TREATY WAS FREE TO DO SO GIVEN THE COURT GOAHEAD GERMANY'S LEGISLATURE IS EXPECTED TO SOON PASS THE TREATY WITHOUT A HITCH BELGIUM WHICH HOLDS THE COMMUNITY'S ROTATING PRESIDENCY IMMEDIATELY ANNOUNCED A SPECIAL SUMMIT OF EC LEADERS FOR OCT 29 IN BRUSSELS AND SAID THE PACT WOULD COME INTO FORCE NOV 1 THE LEADERS ARE EXPECTED TO SELECT A SITE FOR A NEW EUROPEAN MONETARY INSTITUTE WHICH UNDER THE MAASTRICHT ACCORD COMES INTO BEING NEXT JANUARY TO COORDINATE PHASE TWO OF THE EC'S PLAN FOR ECONOMIC AND MONETARY UNION FRANKFURT IS CONSIDERED THE FAVORITE TO HOUSE THE INSTITUTE WHICH IS SEEN AS THE FORERUNNER OF A CENTRAL EUROPEAN BANK AS ONE OF ITS CONDITIONS FOR ENDORSING THE TREATY THE COURT SAID IT WOULD CLOSELY MONITOR WHETHER ACTIONS BY EUROPEAN INSTITUTIONS AND ORGANS GO BEYOND THE GUIDELINES OF THE MAASTRICHT ACCORD THE RULING WAS GREETED WITH RELIEF IN MOST EC CAPITALS AS THE CLOSE TO A DIVISIVE DEBATE THAT HAS RAGED ACROSS EUROPE FOR TWO YEARS SIGNED BY THE 12 PRESIDENTS AND PRIME MINISTERS OF EC MEMBERS IN DECEMBER 1991 IN THE SOUTHEASTERN DUTCH CITY OF MAASTRICHT THE TREATY HAD TO BE APPROVED BY THE 12 PARLIAMENTS BEFORE IT COULD COME INTO FORCE THE EUROPEAN TRAIN IS BACK ON TRACK SAID THE GERMAN FOREIGN MINISTER KLAUS KINKEL AND GERMAN CHANCELLOR HELMUT KOHL TERMED THE DECISION AN IMPORTANT MILESTONE FOR THE PROCESS OF EUROPEAN INTEGRATION EVEN WITH THE RATIFICATION DEBATE SETTLED THE MAASTRICHT TREATY ISN'T LIKELY TO USHER IN THE FARREACHING PROMISES MADE BY ITS AUTHORS IT COULD TAKE YEARS BEFORE MAIN PROVISIONS ARE ACTUALLY IMPLEMENTED IN PARTICULAR THE BACKBONE OF THE DOCUMENT A PLAN TO CREATE A SINGLE EUROPEAN CURRENCY BEFORE THE END OF THE CENTURY IS NOW WIDELY CONSIDERED UNREALISTIC ESPECIALLY SINCE THE PRACTICAL COLLAPSE OF EUROPE'S CURRENCYEXCHANGE GRID THIS SUMMER WHEN DENMARK REJECTED THE TREATY IN ITS FIRST TEST AT A REFERENDUM IN JUNE 1992 THE TREATY RAN INTO A TIDAL WAVE OF OPPOSITION AND CONTROVERSY IT PASSED A FRENCH REFERENDUM BY THE NARROWEST OF MARGINS AND WAS ENDORSED BY BRITAIN'S CONSERVATIVEDOMINATED PARLIAMENT ONLY AFTER PRIME MINISTER JOHN MAJOR THREATENED TO RESIGN AND FORCE NEW ELECTIONS EC COMMISSION PRESIDENT JACQUES DELORS WHO HAS KEPT A LOW PROFILE SINCE THE TREATY RAN INTO TROUBLE SAID THE RATIFICATION COULD HELP END THE UNCERTAINTY THAT HAD CAUSED SO MUCH ECONOMIC AND POLITICAL GLOOM IN EUROPE OVER THE PAST TWO YEARS THE ENTRY OF THE TREATY INTO FORCE WOULD ALLOW THE COMMUNITY TO END A PERIOD OF WAITING AND MOROSENESS AND GIVE THE NEW IMPETUS THAT IS SO NECESSARY IN THE FIGHT AGAINST ECONOMIC STAGNATION AND UNEMPLOYMENT AS WELL AS REINFORCING THE CONTINENT'S SECURITY HE SAID IN A STATEMENT BUT IN REMARKS HEARD OVER AN OPEN MICROPHONE AS MR DELORS AWAITED AN INTERVIEW WITH GERMAN TELEVISION THE COMMISSION PRESIDENT EXPRESSED HIS CONCERNS ABOUT THE WAY THE TREATY WAS DRAFTED I HAD DOUBTS I WASN'T SURE THE TREATY IS VERY BADLY DONE FROM A LEGAL POINT OF VIEW HE SAID THE COURT CHALLENGE WAS SPEARHEADED BY MANFRED BRUNNER A BAVARIAN LAWYER WHO WAS A FORMER TOP AIDE TO GERMANY'S SENIOR EC COMMISSIONER MARTIN BANGEMANN BUT HIS PRINCIPAL ARGUMENTS WERE REJECTED BY THE JUDGES OVERALL THE CONCERNS OF THE PLAINTIFFS THAT THE EC BECAUSE OF ITS AMBITIOUS GOALS WILL DEVELOP WITHOUT NEW PARLIAMENTARY RIGHTS INTO A POLITICAL UNION WHOSE SOVEREIGNTY RIGHTS CAN'T BE FORESEEN WERE UNFOUNDED THE COURT SAID BUT EVEN MR BRUNNER FOUND SOME CAUSE FOR CHEER HE SAID THAT THE COURT'S PROMISE TO SCRUTINIZE FUTURE ACTS BY EC INSTITUTIONS HAD GIVEN THE JUDGES A VETO RIGHT TO ENSURE THAT STANDARDS SUCH AS CRITERIA FOR JOINING IN A SINGLE CURRENCY AREN'T WEAKENED WHILE EC MEMBER STATES SAID THEY HOPED THE DEBATE ABOUT THE TREATY WILL NOW DIE DOWN ITS LOUDEST OPPONENTS VOWED TO KEEP UP THE FIGHT A SPOKESMAN FOR GERMANY'S FARRIGHT REPUBLICAN PARTY SAID HIS GROUP WOULD WORK TO REPEAL THE TREATY PARTICULARLY THE PROVISION TO GIVE EC CITIZENS OF ANY NATIONALITY A RIGHT TO VOTE IN LOCAL ELECTIONS JULIE WOLF CONTRIBUTED TO THIS ARTICLE 9310130125 931013 WHO'S NEWS TOP SHIMIZU OFFICIALS CHARGED WITH BRIBING GOVERNOR STEP DOWN TOKYO KYODO JAPAN'S LARGEST CONSTRUCTION COMPANY SHIMIZU CORP ANNOUNCED THE RESIGNATIONS OF ITS CHAIRMAN AND VICE CHAIRMAN TWO OF THREE SHIMIZU EXECUTIVES INDICTED MONDAY ON CHARGES OF BRIBING THE FORMER GOVERNOR OF IBARAKI PREFECTURE TO SECURE PUBLIC WORKS PROJECTS SHIMIZU PRESIDENT HARUSUKE IMAMURA TOLD A NEWS CONFERENCE TUESDAY THAT CHAIRMAN TERUZO YOSHINO 75 YEARS OLD AND VICE CHAIRMAN HIROYUKI KOYAMA 67 HAD STEPPED DOWN MR IMAMURA ALSO APOLOGIZED FOR HAVING DENIED THAT THE COMPANY WAS INVOLVED IN THE SCHEME AT A SEPT 21 NEWS CONFERENCE ONE DAY AFTER THE EXECUTIVES WERE ARRESTED MR IMAMURA DENIED ANY INVOLVEMENT BY THE TOKYO HEAD OFFICE HE SAID AT THAT TIME THAT AN INHOUSE INVESTIGATION COULD NOT CONFIRM THE ALLEGED HANDING OVER OF BRIBES MESSRS YOSHINO AND KOYAMA WERE CHARGED MONDAY WITH PAYING MORE THAN 10 MILLION YEN 94000 IN BRIBES TO THEN IBARAKI GOV FUJIO TAKEUCHI LAST YEAR TO WIN PUBLIC WORKS PROJECTS IN THE PREFECTURE WHILE THE THIRD INDICTED EXECUTIVE AKIKAZU MATSUMOTO 59 A MANAGING DIRECTOR ALSO TENDERED HIS RESIGNATION MR IMAMURA SAID THE BOARD HAS YET TO DECIDE WHETHER TO APPROVE THE MOVE 9310130124 931013 KODAK ANNOUNCES IT WON A ROUND OVER FUJI PAPER THE INTERNATIONAL TRADE COMMISSION MADE A PRELIMINARY DETERMINATION YESTERDAY THAT EASTMAN KODAK CO WAS MATERIALLY INJURED BY LOW PRICES OF PHOTOGRAPHIC PAPER SOLD IN THE US BY FUJI PHOTO FILM CO KODAK SAID THE ITC A US AGENCY COULDN'T BE REACHED FOR COMMENT LATE YESTERDAY IN A STATEMENT FUJI WHICH IS BASED IN TOKYO SAID PRELIMINARY RULINGS ARE COMMON AND NOT NECESSARILY INDICATIVE OF THE FINAL OUTCOME FUJI IS CONFIDENT THAT KODAK WILL NOT BE ENTITLED TO TARIFFS THE ITC PRELIMINARY DETERMINATION WAS MADE IN RESPONSE TO A PETITION THAT THE ROCHESTER NY PHOTOGRAPHY HEALTHCARE AND CHEMICALS CONCERN FILED IN AUGUST ALLEGING THAT FUJI USES PROFITS FROM MONOPOLYLIKE SALES IN THE JAPANESE MARKET TO SUBSIDIZE DUMPING OF PAPER IN THE US THE COLOR PAPER IN QUESTION IS MADE BY FUJI IN JAPAN AND THE NETHERLANDS IT IS USED TO MAKE PRINTS OF PHOTOGRAPHS BEFORE TARIFFS CAN BE IMPOSED ON THE FUJI PAPER THE US COMMERCE DEPARTMENT WOULD HAVE TO MAKE A PRELIMINARY DETERMINATION THAT FUJI SOLD THE PAPER IN THE US AT PRICES BELOW FAIR MARKET VALUE A KODAK SPOKESMAN SAID HE DOESN'T EXPECT SUCH A RULING UNTIL ABOUT NEXT FEBURARY ONCE BOTH THE ITC AND THE COMMERCE DEPARTMENT MAKE THEIR PRELIMINARY RULINGS TARIFFS COULD BE IMPOSED THE ITC AND THE COMMERCE DEPARTMENT WOULD THEN MAKE FINAL RULINGS WHICH COULD RESULT IN AN ADJUSTMENT OF THE TARIFFS IN ITS ANTIDUMPING PETITION KODAK ALLEGED THAT FUJI SOLD THE PAPER IN THE US AT PRICES AS LOW AS ONE FOURTH OF WHAT IT CHARGES IN JAPAN WHEN KODAK FILED ITS PETITION FUJI ISSUED A STATEMENT SAYING THAT BECAUSE KODAK DOMINATES THE COLORPAPER MARKET KODAK IS THE PRICING LEADER FUJI ALSO SAID THAT ITS OWN PAPER OFFERS CONSUMERS ALTERNATIVES IN BOTH QUALITY AND PRICE TARIFFS ON THE FUJI PAPER WOULD BE A SIGNIFICANT PLUS FOR KODAK WHICH HAS BEEN SUFFERING FROM PRICING PRESSURES MAINLY FROM FUJI ON ITS FILM AND COLOR NEGATIVE PAPER ONE MONTH BEFORE THE KODAK BOARD DISCLOSED IN EARLY AUGUST THAT IT HAD ASKED FOR HIS RESIGNATION CHAIRMAN KAY R WHITMORE SAID THAT A PRICING STRATEGY WOULD BE A MAJOR PART OF A KODAK RESTRUCTURING PLAN HOWEVER IN LIGHT OF MR WHITMORE'S PENDING DEPARTURE SUCH A STRATEGY WILL PROBABLY BE LEFT UP TO KODAK'S NEW CHIEF EXECUTIVE WHO IS EXPECTED TO BE NAMED BEFORE THE END OF THE YEAR KODAK MADE THE ANNOUNCEMENT AFTER THE MARKETS CLOSED IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE KODAK SHARES CLOSED AT 59125 DOWN 125 CENTS 9310130123 931013 MCDONNELL PROBED ON BILLS CHARGED TO US COSTS OF DEFENSE CONTRACTOR TO RECEIVE SCRUTINY IN HOUSE PANEL HEARING BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL CONGRESSIONAL INVESTIGATORS ALLEGE THAT MCDONNELL DOUGLAS CORP SYSTEMATICALLY PASSED ON TO THE PENTAGON MILLIONS OF DOLLARS IN QUESTIONABLE CHARGES RANGING FROM TICKETS TO SPORTING EVENTS AND SYMPHONY PERFORMANCES TO COSTS FOR COMPANY EXECUTIVES WHO ATTENDED THE INFAMOUS TAILHOOK CONVENTION TWO YEARS AGO A HOUSE ENERGY AND COMMERCE SUBCOMMITTEE IS SCHEDULED TO HOLD A HEARING TODAY DELVING INTO THE CONTRACTOR'S OVERHEAD EXPENSES AND CRITICIZING THE COMPANY FOR LAX FINANCIAL CONTROLS THE COMPANY HAD BELATEDLY WITHDRAWN SOME OF THE CHARGED AMOUNTS AND AGREED TO PAY FOR THE MOST CONTROVERSIAL ITEMS INCLUDING MORE THAN 50000 IN TRAVEL ENTERTAINMENT AND SALARY EXPENSES FOR EXECUTIVES WHO ATTENDED TAILHOOK EVENTS IN ST LOUIS WHERE THE COMPANY IS BASED A MCDONNELL SPOKESMAN DECLINED TO COMMENT UNTIL AFTER THE HEARING THE HEARING ON MCDONNELL DOUGLAS THE NATION'S TOP DEFENSE SUPPLIER COMES AT A TIME WHEN THE COMPANY'S C17 TRANSPORT PROGRAM IS AT A CRITICAL POINT AND THE COMPANY IS EMBROILED IN A NEARLY 3 BILLION LAWSUIT CHALLENGING THE PENTAGON'S EARLIER DECISION TO CANCEL THE NAVY'S CARRIERBASED A12 ATTACK PLANE THE HEARING'S IMPACT ON OTHER DEFENSE CONTRACTORS HOWEVER MAY BE EQUALLY SIGNIFICANT INDUSTRY LEADERS HAVE ARGUED THAT TOUGHER PENTAGON REGULATIONS COUPLED WITH MORE SELFPOLICING BY THE CONTRACTORS THEMSELVES HAVE ELIMINATED THE WORST ACCOUNTING EXCESSES OF THE PAST THE PANEL'S CHAIRMAN REP JOHN DINGELL D MICH IS EXPECTED TO BORE IN ON THE ISSUE OF INFLATED OVERHEAD ACCOUNTS NEARLY EIGHT YEARS AFTER HEARINGS THAT HE LED DISCLOSED SUCH ABUSES THOSE PREVIOUS HEARINGS ATTRACTED NATIONAL HEADLINES PROMPTED A SPATE OF CRIMINAL PROBES AND ULTIMATELY UNDERCUT LEGISLATIVE SUPPORT FOR PRESIDENT REAGAN'S DEFENSE BUILDUP IN 1985 FOR INSTANCE GENERAL DYNAMICS CORP WAS LAMBASTED BY LAWMAKERS FOR ASKING THE PENTAGON TO COVER DOG KENNEL FEES FOR ONE OF ITS EXECUTIVES PAY CERTAIN HUNTING LODGE EXPENSES AND PICK UP THE TAB FOR VARIOUS CORPORATE ENTERTAINMENT EVENTS AT TODAY'S HEARING INVESTIGATORS FROM THE GENERAL ACCOUNTING OFFICE AND DEFENSE CONTRACT AUDIT AGENCY ARE EXPECTED TO TESTIFY THAT THEY FOUND SOME OF THE SAME KINDS OF QUESTIONABLE CHARGES DURING RECENT AUDITS OF MCDONNELL DOUGLAS'S BOOKS THE COSTS CHALLENGED BY GOVERNMENT AUDITORS THIS TIME INVOLVED AMONG OTHER THINGS BOWLING CLUBS AND A CHILI COOKOFF ACCORDING TO ONE INVESTIGATOR TWO MONTHS AFTER THE SCANDAL SURROUNDING ASSAULTS ON WOMEN AT THE TAILHOOK ASSOCIATION CONVENTION IN LAS VEGAS BECAME PUBLIC IN 1991 MCDONNELL DOUGLAS SHIFTED ABOUT 25000 IN PERSONNEL CHARGES TO ACCOUNTS WHERE THEY WOULDN'T BE REIMBURSED BY GOVERNMENT CONTRACTS ACCORDING TO CONGRESSIONAL INVESTIGATORS AROUND THE TIME MCDONNELL DOUGLAS SOUGHT TO INCLUDE MANY OF THOSE AND OTHER QUESTIONABLE CHARGES AS PART OF ITS OVERHEAD FOR FEDERAL CONTRACTS THE COMPANY'S SENIOR EXECUTIVES WERE URGING AIR FORCE AND PENTAGON OFFICIALS TO GRANT THE COMPANY AS MUCH AS 1 BILLION IN EXTRAORDINARY FINANCIAL ASSISTANCE 9310130122 931013 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS 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 9310130121 931013 FEDERAL EXPRESS VOLUME ROSE MEMPHIS TENN FEDERAL EXPRESS CORP SAID AVERAGE DAILY VOLUME ROSE 103 IN SEPTEMBER FROM A YEAR EARLIER REFLECTING GAINS IN ITS DEFERRED DELIVERY SERVICES THE COMPANY SHIPPED 387 MILLION PACKAGES LAST MONTH COMPARED WITH 351 MILLION IN SEPTEMBER 1992 THE LOWERMARGIN DELIVERY SERVICES CONTINUED TO GROW AT A FASTER CLIP THAN THE HIGHERMARGIN PRIORITY SERVICE THE COMPANY BOOSTED PRIORITY OVERNIGHT VOLUME BY 9 TO 889000 FROM 816238 STANDARD OVERNIGHT DELIVERY VOLUME ROSE 125 TO 437190 FROM 388572 AND ECONOMY TWODAY VOLUME GAINED 10 TO 383143 FROM 348810 INTERNATIONAL PRIORITY VOLUME ROSE 14 TO 130429 FROM 114571 INTERNATIONAL AIR FREIGHT VOLUME FELL TO 396 MILLION POUNDS FROM 432 MILLION POUNDS 9310130120 931013 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/16 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 89 DAYS 320 90 TO 239 DAYS 325 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 315 60 DAYS 326 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 259 TWO MONTHS 269 THREE MONTHS 274 SIX MONTHS 288 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 322 THREE MONTHS 322 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 304 60 DAYS 313 90 DAYS 313 120 DAYS 313 150 DAYS 313 180 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 TUESDAY OCTOBER 12 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A 13 WEEKS 312 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 657 60 DAYS 665 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 656 60 DAYS 666 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 480 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9310130117 931013 WHO'S NEWS NCR CORP'S WHITE TO RETIRE AS PRESIDENT OF AT&T UNIT IN 1994 DAYTON OHIO YET ANOTHER TOP NCR CORP VETERAN IS RETIRING EARLY AS AMERICAN TELEPHONE & TELEGRAPH CO CONTINUES TO CONSOLIDATE ITS CONTROL OVER THE COMPANY NCR PRESIDENT R ELTON WHITE 51 YEARS OLD SAID HE WILL RETIRE IN EARLY 1994 AND PURSUE OTHER BUSINESS INTERESTS HE BECAME PRESIDENT OF THE COMPUTER COMPANY WHEN IT MERGED WITH AT&T IN 1991 HIS EXIT FOLLOWS THE EARLY RETIREMENT THIS SPRING OF NCR CHAIRMAN GILBERT WILLIAMSON WHO WAS SUCCEEDED BY AT&T EXECUTIVE JERRE STEAD NCR SAID IT WON'T NAME A SUCCESSOR FOR MR WHITE WHO JOINED THE COMPANY IN 1967 AS A PRICE ANALYST HIS DUTIES WILL BE ASSUMED BY MR STEAD 9310130116 931013 BANCFIRST AGREES TO BUY BANK OKLAHOMA CITY BANCFIRST CORP AGREED TO ACQUIRE FIRST CITY BANK OF TULSA OKLA THE PURCHASE PRICE WASN'T DISCLOSED BANCFIRST SAID FIRST CITY IS CURRENTLY OWNED BY FIRST BANCSHARES OF MUSKOGEE INC AND HAS TOTAL ASSETS OF 40 MILLION THE ACQUISITION WOULD BE STRUCTURED AS A CASH PURCHASE AND IS SUBJECT TO DUE DILIGENCE AND THE APPROVAL OF SHAREHOLDERS AND REGULATORY AGENCIES THE BANKHOLDING COMPANY SAID IN A NEWS RELEASE 9310130115 931013 INTERNATIONAL NEWS CORP PLANS MAJOR OUTLAYS OR ALLIANCES TO EXPAND GLOBALLY BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL ADELAIDE AUSTRALIA RUPERT MURDOCH SAID HE IS LAYING THE GROUNDWORK TO MAKE MAJOR INVESTMENTS OR TAKE ON PARTNERS TO FURTHER NEWS CORP'S REACH IN THE GLOBAL MEDIA AND ENTERTAINMENT INDUSTRIES AT THE ANNUAL MEETING MR MURDOCH CHAIRMAN AND 30 OWNER OF NEWS CORP SAID THE COMPANY PLANS TO CREATE A NEW SHARECAPITAL STRUCTURE BY ISSUING TO EXISTING HOLDERS A CLASS OF SHARES THAT WOULD CARRY INCREASED VOTING RIGHTS ONCE THAT IS DONE MR MURDOCH SAID NEWS CORP COULD ISSUE ORDINARY OR COMMON SHARES TO MAKE NEW AND MAJOR STRATEGIC ALLIANCES PERHAPS WITH TELECOMMUNICATIONS AND OTHER COMPANIES WHERE VARIOUS TECHNOLOGIES ARE CONVERGING HE SAID NO SPECIFIC ACQUISITION OR PARTNERSHIP PLANS ARE IN THE WORKS HE ADDED THAT THE COMPANY SIMPLY WANTS TO OPEN THE OPTION FOR ALLIANCES CREATING SUCH A SHARE STRUCTURE HE SAID WOULD ENSURE THAT EXISTING SHARE OWNERS' HOLDINGS AREN'T DILUTED AT THE SAME TIME HE ADDED IT WILL GUARANTEE THAT MANAGEMENT REMAINS IN PLACE MR MURDOCH ALSO ESTIMATED THAT EARNINGS FOR THE FIRST QUARTER ENDED SEPT 30 WERE ABOUT 20 HIGHER THAN IN A YEAR EARLIER WHEN NEWS CORP REPORTED A PROFIT OF 1937 MILLION AUSTRALIAN DOLLARS US1276 MILLION BUT HE SAID THERE ARE TOO MANY UNKNOWNS TO GIVE A FORECAST FOR THE FISCAL YEAR MOST ANALYSTS OF NEWS CORP ARE LOOKING FOR THIS YEAR'S PROFIT TO EXCEED THE PREVIOUS YEAR'S A979 MILLION AFTER TAX BUT BEFORE ACCOUNTING FOR SOCALLED ABNORMAL OR ONETIME ITEMS AT A NEWS CONFERENCE MR MURDOCH DISCLOSED THAT HE RECENTLY SOLD MOST OF NEWS CORP'S STAKE IN THE HONG KONGBASED DAILY SOUTH CHINA MORNING POST BECAUSE HE BELIEVED IT WAS A POLITICAL LIABILITY THAT THREATENED TO HAMPER HIS AMBITIONS TO EXPAND SATELLITE TELEVISION BROADCASTING INTERESTS IN CHINA THROUGH STAR TV IN THE PAST SOUTH CHINA MORNING POST TOED A PROBRITISH LINE AND OFTEN IRKED BEIJING LAST WEEK BEIJING SAID IT INTENDS TO BAR MOST INDIVIDUALS FROM USING SATELLITE DISHES THE CRACKDOWN IS WIDELY REGARDED AS A DIRECT REBUKE TO STAR TV WHICH NEWS CORP BOUGHT CONTROL OF IN LATE JULY MR MURDOCH SAID NEWS CORP IS GETTING CONFLICTING REPORTS FROM CHINA ON THE RESTRICTIONS AND THAT HE PLANS TO TRAVEL TO BEIJING FOR TALKS ON THE MATTER IN NOVEMBER MR MURDOCH SAID HE EXPECTS BRITISH SKY BROADCASTING LTD NEWS CORP'S HALFOWNED UNITED KINGDOM SATELLITE BROADCASTER TO POST AN OPERATING PROFIT OF AT LEAST 180 MILLION 2766 MILLION THIS YEAR UP FROM 60 MILLION LAST YEAR IN THE US HE SAID HE EXPECTS TV GUIDE TO POST PRETAX EARNINGS OF US180 MILLION TO US190 MILLION THIS YEAR AND HE SAID NEWS CORP IS LOOKING TO ACQUIRE MORE TV STATIONS TO ADD TO ITS STRING OF FOX OPERATIONS HE SAID THE NEW YORK POST WHICH THE COMPANY RECENTLY GAINED CONTROL OF WON'T BE A STELLAR INVESTMENT BUT THAT IT IS A PAPER OF GREAT INFLUENCE HE TOLD SHAREHOLDERS THAT THE NEWSPAPER WILL PROBABLY POST ANNUAL LOSSES OF BETWEEN US5 MILLION AND US10 MILLION 9310130114 931013 WESTINGHOUSE CALLS OPERATING PROFIT DISAPPOINTING' BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID THIRDQUARTER NET INCOME CLIMBED TO 65 MILLION FROM 14 MILLION IN THE YEAREARLIER PERIOD BUT THE MORE CLOSELY WATCHED PROFIT FROM CONTINUING OPERATIONS DROPPED 29 THE DECLINE IN PROFIT FROM CONTINUING OPERATIONS TO 65 MILLION FROM 91 MILLION WAS BETTER THAN THE 50 PLUNGE THE COMPANY PROJECTED JUST LAST MONTH NICHOLAS P HEYMANN AN ANALYST WITH NATWEST SECURITIES CORP SAID ORDERS IN SEVERAL OF WESTINGHOUSE'S UNITS TURNED UP IN SEPTEMBER CONTRIBUTING TO THE BETTERTHANEXPECTED RESULTS WE'RE THROUGH THE WORST IN TERMS OF OPERATING SHORTFALLS MR HEYMANN SAID WESTINGHOUSE'S STOCK ROSE 125 CENTS YESTERDAY IN NEW YORK STOCK EXCHANGE TRADING CLOSING AT 1350 A SHARE STILL WESTINGHOUSE TERMED THE QUARTER DISAPPOINTING IT BLAMED THE LOWER PROFIT FROM CONTINUING OPERATIONS IN PART ON WEAK RESULTS IN ITS ENVIRONMENTAL CLEANUP BUSINESS WHERE WASTE INCINERATORS WERE RUNNING AT FAR LESS THAN CAPACITY THE POWER GENERATION UNIT SUFFERED FROM LOWER SHIPMENTS AND THE BROADCASTING SUBSIDIARY WAS HURT BY THE WEAK WEST COAST TELEVISION MARKET ALSO POOR MARKET CONDITIONS IN CALIFORNIA HOBBLED THE REAL ESTATE DEVELOPMENT ARM AND ELECTRONICS HAD LESS REVENUE FROM DEFENSE DEPARTMENT CONTRACTS REVENUE SLID 9 TO 206 BILLION FROM 227 BILLION ON A PERSHARE BASIS EARNINGS ROSE TO 15 CENTS FROM ZERO CENTS EARNINGS FROM CONTINUING OPERATIONS FELL TO 15 CENTS FROM 22 CENTS THE THIRD QUARTER LAST YEAR INCLUDED A LOSS FROM DISCONTINUED OPERATIONS OF 77 MILLION OR 22 CENTS A SHARE 9310130113 931013 WHO'S NEWS DUTY FREE INTERNATIONAL NAMES NEW PRESIDENT RIDGEFIELD CONN DUTY FREE INTERNATIONAL INC PROMOTED THE HEIR APPARENT TO PRESIDENT AND COCHIEF EXECUTIVE OFFICER ESTABLISHING A CLEAR LINE OF SUCCESSION THE OPERATOR OF DUTYFREE STORES NAMED ALFRED CARFORA TO THE POSTS MR CARFORA 42 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER AT THE COMPANY HE WILL JOIN JOHN A COURI WHO WAS NAMED CHAIRMAN AND COCHIEF EXECUTIVE OFFICER MR COURI 52 HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER WE'RE GETTING A VISION FOR OUR LINE OF SUCCESSION A COMPANY SPOKESWOMAN SAID PEOPLE LIKE TO SEE THAT MANAGEMENT HAS A PLAN IN PLACE AS PART OF THE NEW MANAGEMENT STRUCTURE DAVID BERNSTEIN 58 STEPPED DOWN AS CHAIRMAN OF THE COMPANY BECOMING CHAIRMAN OF THE BOARD'S EXECUTIVE COMMITTEE 9310130112 931013 WHO'S NEWS INTELLIGENT ELECTRONICS INC INTELLIGENT ELECTRONICS INC EXTON PA ROBERT P MAY A 44YEAROLD FORMER SENIOR EXECUTIVE OF FEDERAL EXPRESS CORP WAS NAMED TO THE NEW POSITIONS OF SENIOR VICE PRESIDENT OF THIS COMPUTER RETAILER AND RESELLER AND CHIEF EXECUTIVE OF ITS WHOLLY OWNED SUBSIDIARY INTELLIGENT DISTRIBUTION SERVICES INC 9310130111 931013 WHO'S NEWS GRIST MILL CO GRIST MILL CO LAKEVILLE MINN GLEN BOLANDER PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER OF THIS MAKER OF FRUIT SNACKS GRANOLA BARS READYTOEAT CEREALS CANDY BARS AND PREFORMED PIE CRUST MR BOLANDER 47 YEARS OLD SUCCEEDS RONALD K ZUCKERMAN 51 WHO CONTINUES AS CHAIRMAN 9310130110 931013 BUSINESS BRIEF LA GEAR REPORTS 3RDQUARTER EARNINGS FIRST PROFIT IN 3 YEARS SANTA MONICA CALIF LA GEAR INC POSTED ITS FIRST QUARTERLY PROFIT IN THREE YEARS WITH NET INCOME OF 72 MILLION OR 23 CENTS A SHARE FOR THE THIRD QUARTER ENDED AUG 31 NET INCOME INCLUDED A CREDIT OF 27 MILLION RELATED TO THE PARTIAL RECOVERY OF CHARGES TAKEN IN THE SECOND AND THIRD QUARTERS OF 1992 FOR THE SETTLEMENT OF SHAREHOLDER LAWSUITS IN THE YEAREARLIER THIRD QUARTER LA GEAR HAD A NET LOSS OF 114 MILLION OR 59 CENTS A SHARE SALES FOR THE LATEST QUARTER CLIMBED 48 TO 143 MILLION FROM 1364 MILLION THE FOOTWEAR COMPANY CREDITED THE TURNAROUND TO STRONG ORDERS FOR ITS BACKTOSCHOOL PRODUCT LINE WHICH RESULTED IN INCREASED AVERAGE SELLING PRICES AND HIGHER GROSS MARGINS AS WELL AS SALES OF THE COMPANY'S LINE OF LA LIGHTS LIGHTED SNEAKERS FOR CHILDREN TOTAL BACKLOG CLIMBED 32 FROM A YEAR EARLIER TO 1594 MILLION WITH NEARLY HALF THAT AMOUNT FOR THE COMPANY'S SHOES WITH LIGHTS THE RESULTS WERE PARTIALLY OFFSET BY ADDITIONAL OPERATING COSTS OF THE COMPANY'S EUROPEAN OPERATIONS AND INCREASED PRODUCT SOURCING AND ROYALTY FEES LA GEAR SAID HOWEVER LA GEAR WARNED THAT THE STRONG FINANCIAL PERFORMANCE MAY NOT BE SUSTAINED IN THE MONTHS AHEAD THE COMPANY ANTICIPATES THAT THE CONTINUED WORLDWIDE ECONOMIC RECESSION AND CHANGING CONSUMER PREFERENCES MAY CREATE INCREASED PRICING PRESSURE IN THE MARKETPLACE WHICH MAY REQUIRE REDUCTIONS TO THE SELLING PRICES OF SELECTED EXISTING FOOTWEAR INVENTORY WHICH IN TURN MAY RESULT IN LOWER THAN DESIRED GROSS PROFIT MARGINS COMPANY EXECUTIVES SAID FOR THE NINE MONTHS THE COMPANY'S NET LOSS NARROWED TO 175 MILLION OR 102 A SHARE FROM 421 MILLION OR 230 A SHARE WHILE SALES FELL 13 TO 3039 MILLION FROM 3507 MILLION 9310130109 931013 BUSINESS BRIEF FUTURE COMMUNICATIONS INC SHAREHOLDER CHARGES OFFICERS BROKERAGE FIRM WITH FRAUD A SHAREHOLDER SUED FUTURE COMMUNICATIONS INC FOUR OF ITS OFFICERS AND A SECURITIES FIRM IN FEDERAL COURT IN DALLAS ALLEGING THAT THEY MANIPULATED THE VALUE OF THE COMPANY'S STOCK THE SUIT FILED BY SEYMOUR JAFFE A HOLDER OF 1000 SHARES ACCUSES THE CABLETELEVISION CONCERN OF DISSEMINATING FALSE AND MISLEADING STATEMENTS DESIGNED TO INFLATE FUTURE'S STOCK PRICE IT ALSO ACCUSES REYNOLDS KENDRICK STRATTON INC A BEVERLY HILLS CALIF BROKERAGE FIRM AND MARKET MAKER FOR FUTURE'S STOCK OF PARTICIPATING IN THE FRAUD ALSO NAMED IN THE LAWSUIT ARE SERGIO BOSCO FUTURE CHAIRMAN DAVID GORMAN EXECUTIVE VICE PRESIDENT AND TREASURER JOHN DUPERTUIS CHIEF FINANCIAL OFFICER AND GARY DARTNALL WHO IS IDENTIFIED AS PRESIDENT MR JAFFE SEEKS CLASSACTION STATUS FOR ALL WHO BOUGHT SHARES BETWEEN MAY 17 THE FIRST TRADING DAY AFTER A 1FOR3 REVERSE STOCK SPLIT AND AUG 31 WHEN THE NATIONAL ASSOCIATION OF SECURITIES DEALERS HALTED TRADING IN FUTURE NASD SAID THIS WEEK IT WILL DELIST THE STOCK ON THURSDAY 9310130108 931013 POLITICS & POLICY CLINTON ORDERS SHIP OFF HAITI TO WITHDRAW BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON WITHDREW A US MILITARY SHIP THAT HAS BEEN BLOCKED FROM ENTERING HAITI AND HE PRESSED THE UNITED NATIONS SECURITY COUNCIL TO REIMPOSE ECONOMIC SANCTIONS ON THE CARIBBEAN NATION WITH DOUBTS GROWING OVER THE PROSPECTS FOR AN AGREEMENT DESIGNED TO RESTORE DEMOCRACY TO HAITI MR CLINTON SAID I WILL NOT HAVE OUR FORCES DEPOSITED ON HAITI WHEN THEY CANNOT SERVE AS ADVISERS WHEN THEY CAN'T DO WHAT THEY ARE ASKED TO DO HE ORDERED THE WITHDRAWAL OF THE USS HARLAN COUNTY WHICH IS CARRYING ABOUT 200 MILITARY PERSONNEL PART OF AN INTERNATIONAL DEPLOYMENT TO HELP TRAIN THE HAITIAN MILITARY AND POLICE AND ASSIST WITH CONSTRUCTION PROJECTS THE PENTAGON SAID THE SHIP WOULD SAIL TO THE US BASE AT GUANTANAMO BAY CUBA A SHORT VOYAGE TO THE WEST A SECOND SHIP CARRYING MORE US PERSONNEL IS BEING HELD IN PORT AT NORFOLK VA MR CLINTON'S OVERALL MESSAGE FOLLOWING A TWOHOUR MEETING WITH HIS TOP ADVISERS WAS THAT US PERSONNEL WOULDN'T GO ASHORE UNTIL THE HAITIAN MILITARY LIVED UP TO ITS PROMISES AND THE CURRENT ENVIRONMENT OF UNREST AND VIOLENCE ENDED HE SAID THAT DEFENSE DEPARTMENT OFFICIALS WERE CONFIDENT THAT ONCE THAT OCCURRED THE LIGHTLY ARMED SOLDIERS WOULDN'T BE IN DANGER BUT WITH FRESH MEMORIES OF THE RECENT AMERICAN CASUALTIES IN SOMALIA MR CLINTON SAID UNTIL WE KNOW WE'RE NOT GOING IN THERE STILL MR CLINTON INSISTED THAT HIS LATEST ACTIONS WOULDN'T NECESSARILY SCUTTLE THE AGREEMENT WORKED OUT IN NEW YORK IN JULY BETWEEN GEN RAOUL CEDRAS THE HAITIAN ARMY COMMANDER AND JEANBERTRAND ARISTIDE HAITI'S ELECTED PRESIDENT THAT ACCORD OUTLINED NINE STEPS THAT WOULD LEAD TO THE RETURN OF MR ARISTIDE WHO WAS OUSTED IN A BLOODY COUP IN SEPTEMBER 1991 BY OCT 30 I DO NOT THINK IT IS DEAD MR CLINTON SAID I STILL THINK IT WILL COME BACK TO LIFE BUT RIGHT NOW IT HAS BEEN ABROGATED BY PEOPLE WHO HAVE DECIDED TO CLING TO POWER FOR A LITTLE BIT LONGER APPARENTLY ONCE THE PRESSURE OF THE SANCTIONS WAS CUT OFF MR CLINTON WAS REFERRING TO HAITI'S MILITARY LEADERS WHO ALONG WITH OTHERS THAT SUPPORTED THE COUP HAD BEEN THE TARGETS OF UN SANCTIONS THE UN APPROVED SANCTIONS THIS PAST SUMMER BLOCKING THE SALE OF OIL OILRELATED PRODUCTS AND MILITARY GOODS AND FREEZING HAITIAN ASSETS ABROAD A US OFFICIAL SAID THAT FOLLOWING A REPORT BY DANTE CAPUTO THE UN SPECIAL ENVOY IN HAITI THE UN PROBABLY WOULD REIMPOSE THOSE SANCTIONS THE PENALTIES HAD BEEN SUSPENDED AFTER GEN CEDRAS AND MR ARISTIDE SIGNED THEIR ACCORD MR CAPUTO'S REPORT WHICH WILL ADDRESS WHETHER THE AGREEMENT HAS BEEN VIOLATED IS EXPECTED AS SOON AS TODAY A US OFFICIAL INDICATED THAT THERE COULD BE DISCUSSIONS ABOUT TIGHTENING THE SANCTIONS EVEN FURTHER FOR INSTANCE HE SUGGESTED ENFORCEMENT MEASURES MIGHT BE ADDED THAT WOULD IMPOSE PENALTIES ON ANY NATION THAT VIOLATED THE SANCTIONS THE MOB THAT GREETED THE US VESSEL IN HAITI ON MONDAY HAS PUT THE ADMINISTRATION IN A BIND UNLIKE THE CRISES IN BOSNIA AND SOMALIA WHICH MR CLINTON INHERITED FROM FORMER PRESIDENT BUSH THE EFFORT TO RESTORE DEMOCRACY IN HAITI HAS HAD MR CLINTON'S STRONG PERSONAL BACKING FROM THE BEGINNING BUT EVENTS IN SOMALIA HAVE INCREASED MR CLINTON'S CAUTION ABOUT INTERNATIONAL OPERATIONS EVEN AS HE INSISTS THAT THE SITUATIONS IN HAITI AND SOMALIA ARE DIFFERENT MR CLINTON'S REMARKS YESTERDAY REFLECT THE VIEW OF DEFENSE SECRETARY LES ASPIN WHO ARGUED THAT THE US MUST HAVE ITS DEMANDS MET BEFORE RATHER THAN AFTER IT INSERTS MILITARY PERSONNEL THE PENTAGON WENT EVEN FURTHER YESTERDAY INSISTING THAT IF NO PROGRESS IS MADE IN HAITI BY MONDAY IT WOULD REVIEW WHETHER TO WITHDRAW A SMALL US MILITARY ADVANCE PARTY NOW IN HAITI INDEED THE ORDER WITHDRAWING THE USS HARLAN COUNTY FROM HAITIAN WATERS REPRESENTS THE REVERSE OF THE GUNBOAT DIPLOMACY THAT CHARACTERIZED US POLICY TOWARD LATIN AMERICA EARLIER IN THIS CENTURY HAITI ALSO RAISES DOMESTIC POLITICAL STAKES THE CONGRESSIONAL BLACK CAUCUS STRONGLY SUPPORTS BACKING HAITIAN DEMOCRACY AND THE FLORIDA CONGRESSIONAL DELEGATION WORRIES PRIVATELY THAT CHAOS IN HAITI COULD UNLEASH A WAVE OF BOAT PEOPLE HEADING FOR THAT STATE ONE CLEAR SIGNAL OF WHETHER THE NEW YORK ACCORD WILL BE HONORED COULD COME FRIDAY THE DAY GEN CEDRAS HAS PROMISED TO RESIGN MEANWHILE MR ARISTIDE INSISTED THAT HE WOULD RETURN TO HAITI ON OCT 30 BUT CONDITIONS IN HAITI CONTINUE TO DETERIORATE YESTERDAY SIX HAITIAN SENATORS WHOSE CREDENTIALS HAD BEEN CHALLENGED BY THE UN RETURNED TO THE PARLIAMENT ESCORTED BY UNIFORMED POLICE ACCORDING TO WIRE SERVICE REPORTS 9310130107 931013 INTERNATIONAL NIPPON STEEL GIVES WORKERS MORE LEAVE AMID DEMAND SLUMP TOKYO AP WORKERS AT NIPPON STEEL CORP JAPAN'S LARGEST STEELMAKER WILL BE GIVEN TWO EXTRA DAYS OFF EACH MONTH WITH PAY BECAUSE OF A SLUMP IN DEMAND A COMPANY OFFICIAL SAID TUESDAY A SPOKESMAN SAID THE PLAN WILL GO INTO EFFECT IN NOVEMBER FOR AN UNSPECIFIED PERIOD OF TIME ABOUT 37000 WORKERS INCLUDING THOSE IN MANAGEMENT POSTS WILL BE AFFECTED JAPAN'S STEEL PRODUCTION FELL BY 65 FROM A YEAR EARLIER TO 989 MILLION TONS IN THE FISCAL YEAR ENDED MARCH 31 ACCORDING TO THE JAPAN IRON AND STEEL FEDERATION THE FEDERATION PREDICTED THAT THE NATION'S STEEL PRODUCTION WOULD BE 2435 MILLION TONS IN THE OCTOBERDECEMBER PERIOD OF THIS YEAR DOWN FROM 2481 MILLION TONS IN THE PRECEDING PERIOD INDUSTRY OFFICIALS SAY THE MARKET REMAINS POOR BECAUSE OF THE GENERAL SLUMP IN OTHER INDUSTRIES NIPPON STEEL WHICH ACCOUNTS FOR ABOUT 25 OF JAPAN'S OVERALL PRODUCTION LAST TEMPORARILY IDLED WORKERS FROM DECEMBER 1986 TO JULY 1989 BECAUSE OF THE RECESSION STEMMING FROM THE YEN'S SHARP RISE AGAINST THE DOLLAR THE GOVERNMENT PROVIDES SUBSIDIES OF AS MUCH AS 9000 YEN 85 A DAY FOR EACH WORKER STAYING AT HOME TWO OTHER MAJOR JAPANESE STEELMAKERS NKK CORP AND SUMITOMO METAL INDUSTRIES LTD STARTED SIMILAR MEASURES LAST MONTH KAWASAKI STEEL CORP AND KOBE STEEL CORP ARE CONSIDERING THE SAME STEPS 9310130106 931013 CORRECTIONS & AMPLIFICATIONS CHRYSLER CORP'S PLYMOUTH SUNDANCE AND DODGE SPIRIT CARS HAVE HAD DRIVERSIDE AIR BAGS SINCE THE 1990 MODEL YEAR IN YESTERDAY'S AUTOMOBILES COLUMN IT WAS REPORTED THAT THOSE VEHICLES DON'T HAVE AN AIR BAG 9310130105 931013 INTERNATIONAL TAIWAN'S RULING KUOMINTANG PARTY TREADS IN DEEP WATER' AS NOVEMBER ELECTIONS NEAR BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN TAIWAN'S RULING KUOMINTANG FACES THE PROSPECT OF A SERIOUS POLITICAL DEFEAT IN ISLANDWIDE LOCAL ELECTIONS TO BE HELD NEXT MONTH A STREAM OF UNSETTLING NEWS INCLUDING SCANDALS OVER GOVERNMENT PROCUREMENT AND FREE GOLFCLUB MEMBERSHIPS FOR SENIOR OFFICIALS IS ERODING SUPPORT FOR THE PARTY AMONG ALREADY ANGRY VOTERS RECENT POLLS SHOW THAT THE KMT COULD SEE ITS SUPPORT AT THE POLLS FALL BELOW 50 FOR THE FIRST TIME MEANWHILE THE OPPOSITION DEMOCRATIC PROGRESSIVE PARTY MAY SEE ITS SHARE OF THE VOTE EQUAL OR EVEN SURPASS THAT OF THE RULING PARTY THE GENERAL FEELING IS THAT THE KMT IS IN DEEP WATER SAYS TING TINYU AN ADVISER TO GALLUP ORGANIZATION INC IN TAIWAN THE CURRENT SITUATION IS THAT BOTH PARTIES ARE LOOKING AT 40 TO 45 OF THE VOTE ALTHOUGH VOTERS WILL BE SELECTING ONLY COUNTY MAGISTRATES AND THE MAYORS OF MOST MAJOR CITIES A SHARP DECLINE IN VOTER SUPPORT WOULD DEAL A HEAVY BLOW TO THE RULING PARTY THE KMT ALREADY IS REGARDED AS WOUNDED PARTICULARLY IN THE LEGISLATURE WHERE THIS YEAR IT HAS BEEN HARD PRESSED TO RALLY ITS MAJORITY TO DEFEAT OPPOSITION INITIATIVES MANY CRITICS INSIDE THE PARTY FEEL THAT PRESIDENT LEE TENGHUI WHO ALSO SERVES AS KMT CHAIRMAN AND THE PARTY'S SECRETARYGENERAL HSU HSUITEH HAVE BEEN SLOW TO RESPOND TO VOTERS' DEMANDS FOR A CRACKDOWN ON CORRUPTION AND A REDUCTION IN THE INFLUENCE OF MONEYED INTERESTS IN THE PARTY I WOULDN'T LIKE TO HAVE THE KMT LOSE THE ELECTION AS A PRECONDITION FOR REFORM SAYS WEI YUNG A RULING PARTY LEGISLATOR WHO OFTEN CRITICIZES THE KMT LEADERSHIP THAT'S TOO HIGH A PRICE TO PAY THE PARTY PUBLICLY MAINTAINS AN OPTIMISTIC OUTLOOK ABOUT THE NOV 27 ELECTIONS WITH SECRETARYGENERAL HSU'S ASSERTING THAT IT WILL DO BETTER THAN IT DID IN 1989 WHEN THE PARTY GARNERED NEARLY 60 OF THE VOTE FOR COUNTY MAGISTRATES I FEEL THE OVERALL SITUATION IS MUCH BETTER THAN GENERALLY REPORTED BY THE NEWS MEDIA SAYS A PARTY OFFICIAL WHO ASKED NOT TO BE IDENTIFIED THE RULING PARTY CURRENTLY HOLDS 14 OF THE 23 POSTS UP FOR GRABS WHILE THE DPP OR INDEPENDENT ALLIES CONTROL SEVEN ELECTIONS WILL BE HELD THIS YEAR FOR THE FIRST TIME ON THE ISLANDS OF KINMEN AND MATSU WHICH PREVIOUSLY WERE UNDER MARTIAL LAW THE MAYORS OF TAIPEI AND KAOHSIUNG CITIES CURRENTLY APPOINTED WILL BE ELECTED NEXT YEAR MOST ANALYSTS BELIEVE THAT THE DPP COULD INCREASE ITS MAGISTRACIES TO BETWEEN 10 AND 14 WITH THE CHINESE NEW PARTY RECENTLY FORMED BY A BREAKAWAY KMT FACTION POSSIBLY IN A POSITION TO WIN ONE OR TWO 9310130104 931013 WHO'S NEWS KEVLIN CORP KEVLIN CORP WILMINGTON MASS JONATHAN D DONALDSON AND HOWARD A MILEAF WERE NAMED DIRECTORS INCREASING BOARD MEMBERSHIP TO EIGHT MR DONALDSON 44 YEARS OLD IS VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MEDCHEM PRODUCTS INC OF WOBURN MASS MR MILEAF 56 IS VICE PRESIDENTSPECIAL COUNSEL FOR WHEELING PITTSBURGH CORP IN NEW YORK KEVLIN'S CHAIRMAN EMERITUS JAMES S GALBRAITH 72 YEARS OLD RESIGNED AS A DIRECTOR FOR HEALTH REASONS KEVLIN MAKES COMPONENTS OF RADAR AND COMMUNICATION SYSTEMS 9310130103 931013 WEEK'S YIELDS ON CDS SHIFTED LITTLE IN SURVEY NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS CHANGED LITTLE IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS EASED TO 268 FROM 269 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS SLID TO 439 FROM 442 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS REMAINED AT 309 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD FELL SLIGHTLY TO 449 FROM 456 ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE ROSE A BIT TO 277 FROM 275 ON FIVEYEAR JUMBOS THE AVERAGE SLIPPED TO 448 FROM 451 ACCORDING TO BANXQUOTE 9310130102 931013 TREASURY WILL RAISE 245 BILLION IN CASH WASHINGTON THE TREASURY PLANS TO RAISE 245 BILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 256 BILLION IN SHORTTERM BILLS TO REDEEM 2316 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING JAN 20 1994 AND APRIL 21 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794H56 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794K29 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 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 14 THE 13WEEK BILLS MATURE JAN 13 1994 AND THE 26WEEK BILLS MATURE APRIL 14 1994 9310130101 931013 CELLULAR INC DEBT CONVERTED ENGLEWOOD COLO CELLULAR INC SAID 386 MILLION OF 8 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2000 HAVE BEEN CONVERTED INTO ABOUT 26 MILLION SHARES OF COMMON STOCK THE DEBENTURES ORIGINALLY ISSUED IN 1990 WITH AN AGGREGATE PRINCIPAL AMOUNT OF 40 MILLION WERE CALLED FOR REDEMPTION LAST FRIDAY 9310130100 931013 TECHNOLOGY SUPERMAC RASTEROPS ARE IN PATENT DISPUTE SUNNYVALE CALIF THE RIVALRY BETWEEN COMPUTERGRAPHICS CONCERNS SUPERMAC TECHNOLOGY INC AND RASTEROPS CORP IS HEATING UP YESTERDAY SUPERMAC DENOUNCED RASTEROPS FOR SENDING SUPERMAC A LETTER EARLIER THIS WEEK IN WHICH RASTEROPS ACCUSED SUPERMAC OF PATENT VIOLATIONS SUPERMAC LABLED THE LETTER AN UNFOUNDED AND BLATANT THREAT IN THE LETTER WHICH RASTEROPS CONFIRMED RASTEROPS WARNED THAT SUPERMAC DEALERS DISTRIBUTORS AND CUSTOMERS WOULD BE DULY CONCERNED IF SUPERMAC PERSISTS IN THE ALLEGED PATENT VIOLATIONS THE TWO COMPANIES HAVE BEEN SLUGGING IT OUT ALL YEAR FOR MARKET SHARE IN THE FIERCELY COMPETITIVE COMPUTER GRAPHICS BUSINESS SUPERMAC HAS HAD THE BETTER YEAR SO FAR IN 1993 POSTING RECORD EARNINGS WHILE RASTEROPS RECENTLY ESTIMATED IT HAD A SIGNIFICANT OPERATING LOSS IN ITS FIRST QUARTER ENDED SEPT 30 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY SUPERMAC STOCK ROSE 625 CENTS OR 42 TO CLOSE AT 15375 A SHARE WHILE RASTEROPS ROSE 125 CENTS OR 16 TO CLOSE AT 775 A SHARE 9310130099 931013 LETTERS TO THE EDITOR CONSTANT STRUGGLE AGAINST CORRUPTION CONGRATULATIONS ON YOUR SEPT 15 AND 27 PAGEONE ARTICLES ABOUT MEXICO'S LEGAL AND BUSINESS SYSTEMS EVERYTHING MENTIONED IS TRUE WE ARE A MANUFACTURING FIRM WITH AN INJECTION MOLDING PLANT IN TECATE MEXICO IT HAS BEEN A STRUGGLE BUT QUALITY AND EFFICIENCY HAVE PREVAILED AT OUR PLANT WE'VE FOUGHT THE LOOTERS AND THE CORRUPTION SINCE THE BEGINNING ONE OF THE BIGGEST LOOTERS IS THE INSTITUTO MEXICANO DEL SEGURO SOCIAL MEXICO'S VERSION OF A HEALTH SYSTEM AND WORKMEN'S COMP WE HAVE BEEN TRYING TO IMPROVE IT FOR THE PAST THREE YEARS WITH LITTLE EFFECT BUSINESSES PAY MILLIONS OF DOLLARS TO THIS INSTITUTION AND THE SERVICE THE WORKERS GET IS VERY POOR WORKERS AND BABIES DIE AND NO ONE CARES OR DOES ANYTHING ABOUT IT LETTERS HAVE BEEN WRITTEN TO PRESIDENT SALINAS BUT LITTLE PROGRESS HAS BEEN MADE 9310130098 931013 NATIONAL GOLF PROPERTIES DEAL HOUSTON NATIONAL GOLF PROPERTIES INC ACQUIRED SOUTHWYCK GOLF CLUB A 7015YARD PUBLIC GOLF COURSE IN PEARLAND TEXAS FOR 42 MILLION FROM REALTY ADVISORY GROUP INC THE DEAL IS NATIONAL GOLF PROPERTIES' SECOND ACQUISITION SINCE ITS INITIAL PUBLIC OFFERING IN AUGUST THE COMPANY SAID AMERICAN GOLF CORP WILL MANAGE THE COURSE 9310130097 931013 LETTERS TO THE EDITOR SUCH A SCANDAL MY OWN BROTHER CONGRATULATIONS ON YOUR SEPT 23 ARTICLE LOUIS BACON AIMS TO WIN AT ALL COSTS AND DOES YOU POINT OUT THAT WHILE MR BACON HAS UNQUESTIONABLY BEEN SUCCESSFUL IN HIS BUSINESS CAREER THERE IS AN UNTOLD DARKER ASPECT TO THIS STORY YOU REVEAL THAT MR BACON IS ALSO UNFORTUNATELY COMPETITIVE IMAGINE A COMPETITIVE NEW YORKER FURTHERMORE AFTER SPEAKING WITH JEROME ABERNATHY AN EMPLOYEE WHO HAD RECENTLY LEFT MR BACON'S FIRM YOU CONCLUDE THAT SOME PEOPLE CONSIDER MR BACON TO BE TOUGH ON CERTAIN EMPLOYEES HMMM NOW THAT'S SURPRISING YOU ALSO UNEARTH THE FACT THAT MR BACON HAS A HOUSE RENTS TWO APARTMENTS HAS TITLE TO SEVERAL AUTOMOBILES AND OWNS A PUDDLEJUMPING AIRPLANE SPEAKING STRICTLY AS A FAMILY MEMBER WE HAD REALLY HOPED TO KEEP CERTAIN OF MY BROTHER'S PAST ACTIVITIES UNDER WRAPS UNFORTUNATELY FOR US YOU DISCLOSE FOR THE FIRST TIME IN PRINT THAT LOUIS BACON FAILED TO ATTEND A PAINTBALL GAME WITH HIS STAFF AND THAT MR BACON HAD A PERSONAL HUNTING WEAPON FLOWN IN BY JET WHILE ON SAFARI IN AFRICA BY JET OBVIOUSLY A BOAT TO AFRICA WOULD HAVE BEEN A MORE POLITICALLY CORRECT MODE OF TRANSPORT FOR ONE'S KILLING TOOLS IT HAS BEEN POLITELY SUGGESTED BY SOME THAT PERHAPS THIS STORY IS NOT A PERFECT STUDY IN FAIR AND IMPARTIAL JOURNALISM MAYBE IS IT NOT IMPORTANT FOR SOCIETY HOWEVER TO HAVE JOURNALISTS OUT THERE ON THE FRONT LINES ZEALOUSLY BATTLING TO EXPOSE THE MORE PERSONAL ASPECTS OF SUCCESSFUL LIVES 9310130096 931013 LETTERS TO THE EDITOR IN OTHER WORDS WHAT WILL BE WILL BE SHAME ON ARTHUR SCHLESINGER JR FOR QUOTING THE LIKES OF ROUSSEAU TOCQUEVILLE NIEBUHR SAKHAROV AND DE GAULLE IN ORDER TO GUSSY UP HIS GLIB RUMINATION THE FUTURE OUTWITS US AGAIN EDITORIAL PAGE SEPT 20 IF WE ARE TO SUMMON SUCH AUGUST COMPANY TO TESTIFY ON THE FUTILITY OF PREDICTING THE FUTURE LET'S PUT A REALLY COMPELLING ISSUE ON TRIAL ABORTION FOR EXAMPLE ISN'T ABORTION THE ULTIMATE ATTEMPT TO PREDICT AND TO ACT ON A PREDICTION OF THE FUTURE IF ONE SHOULDN'T INSULT THE FUTURE DE GAULLE WHAT OF A CULTURE THAT COUNTENANCES KILLING IT AND WHAT OF KERVORKIAN SUICIDE AND EUTHANASIA ARE WE NOT SLOUCHING TOWARD THE DEPTH OF EVIL TO WHICH INDIVIDUALS AND COMMUNITIES MAY SINK WHEN THEY TRY TO PLAY THE ROLE OF GOD TO HISTORY NEIBUHR IS NOT A SOCIETY THAT CULTIVATES NAY CELEBRATES A RIGHT TO KILL TRESPASSING IN REALMS OUTSIDE THE FATAL CIRCLE BEYOND WHICH HE MAN CANNOT PASS TOCQUEVILLE YES MR SCHLESINGER THE NATTERING OF PUNDITS AND PROGNOSTICATORS ABOUT THE FUTURE OF MIDEAST PEACE ACCORDS AND POTENTIAL PRESIDENTIAL CANDIDATES CAN BE TEDIOUS AND NOT A LITTLE SILLY HOWEVER I THINK ROUSSEAU HAD MORE IN MIND WHEN HE SAID THE ABILITY TO FORESEE THAT SOME THINGS CANNOT BE FORESEEN IS A VERY NECESSARY QUALITY AND SAKHAROV WHEN HE WARNED WE KNOW TOO LITTLE ABOUT THE LAWS OF HISTORY THE FUTURE IS UNPREDICTABLE WE ARE NOT GODS 9310130095 931013 LETTERS TO THE EDITOR MEXICO'S NEW UTILITY UNFAIRLY PORTRAYED READERS OF THE SEPT 8 ARTICLE ABOUT MEXICO'S NEW ELECTRIC POWER PLANT CARBON II MAY HAVE BEEN LEFT WITH THE IMPRESSION THAT THE PLANT IS ENVIRONMENTALLY UNACCEPTABLE FORTUNATELY INFORMATION IS AVAILABLE THAT SHOWS THIS IS NOT TRUE THE PLANT WILL FULLY COMPLY WITH ALL MEXICAN ENVIRONMENTAL LAWS AND REGULATIONS AND WILL ALSO MEET THE US ENVIRONMENTAL PROTECTION AGENCY'S AMBIENT AIR QUALITY STANDARDS WE ARE NOW ENGAGED IN THE FINAL STAGES OF REACHING AGREEMENT WITH MEXICO'S FEDERAL UTILITY CFE AND OTHERS FOR THE PRIVATIZATION OF CARBON II AS PART OF THE SALINAS ADMINISTRATION'S OVERALL MOVE TO ENHANCE THE ECONOMIC DEVELOPMENT OF MEXICO AN AFFILIATE OF SCE CORP'S MISSION ENERGY SUBSIDIARY WILL HAVE A 49 EQUITY INTEREST IN CARBON II AND WILL BE RESPONSIBLE FOR ITS DAYTODAY OPERATION AND MAINTENANCE INCLUDING MONITORING AND COMPLIANCE WITH MEXICO'S LAWS WE ARE IN A POSITION TO KNOW THEREFORE THAT THE DRASTIC ASSERTIONS QUOTED IN THE ARTICLE BY UNNAMED REPRESENTATIVES OF THE NATIONAL PARK SERVICE ARE INACCURATE WE HAVE HAD NUMEROUS DISCUSSIONS WITH NPS AND WITH THE EPA REGARDING THE ENVIRONMENTAL ASPECTS OF CARBON II THE ALLEGED 30 VISIBILITY REDUCTION FOR THE EFFECT OF CARBON II UPON BIG BEND NATIONAL PARK AND THE ALLEGED EFFECTS UPON OTHER NATIONAL PARKS ARE WITHOUT FOUNDATION HAVING BEEN BASED ON INACCURATE PLANT EMISSIONS DATA AND USING A VERY CRUDE ANALYTICAL MODEL IT IS ALSO UNFAIR TO SUGGEST THAT MEXICO HAS TAKEN A DECISION TO STICK WITH 1970S ERA CONTROL TECHNOLOGY TO HOLD DOWN COSTS IT TOOK THE US MORE THAN A DOZEN YEARS OF DEBATE ON CAPITOL HILL TO ARRIVE AT THE 1990 AMENDMENTS TO THE CLEAN AIR ACT AS A NATION WE DECIDED TO ACCEPT THE FINANCIAL AND SOCIAL COSTS OF ADDITIONAL CLEAN AIR REQUIREMENTS AT A POINT IN OUR HISTORY WHEN WE WERE ABLE TO AFFORD THEM MEXICO IS NOW ON ITS WAY TO ACHIEVING THE ECONOMIC PROSPERITY THAT WILL ALLOW IT TO AFFORD GREATER ENVIRONMENTAL EFFORTS BUT IT CAN ACHIEVE THAT PROSPERITY ONLY WITH EXPANDED ELECTRIFICATION 9310130094 931013 INSIDE TRACK INSIDERS SOLD AT APPLIED MAGNETICS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL FOR SHAREHOLDERS IN APPLIED MAGNETICS CORP A LEADING SUPPLIER OF RECORDING HEADS FOR COMPUTER DISKDRIVES OCT 1 WAS A BAD DAY THE STOCK PLUNGED 225 OR 25 TO 688 ON AN ANNOUNCEMENT BY THE COMPANY THAT IT EXPECTED TO REPORT AN OPERATING LOSS FOR THE FISCAL FOURTH QUARTER ENDED SEPT 30 BUT A SELECT GROUP OF HOLDERS ALL SENIOR INSIDERS INCLUDING THE COMPANY'S PRESIDENT HAD SLASHED THEIR HOLDINGS BY 30 ON AVERAGE IN MID TO LATE AUGUST SELLING AT ABOUT 1075 A SHARE ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS COMPANY PRESIDENT RICHARD BALANSON SOLD 30000 SHARES OR A THIRD OF HIS DIRECT STAKE IN THE COMPANY ON AUG 26 AT AN AVERAGE 1075 A SHARE THE SEC DATA INDICATE MR BALANSON WAS UNAVAILABLE FOR COMMENT YESTERDAY SHARES IN THE GOLETA CALIF COMPANY FELL 25 CENTS TO CLOSE AT 550 EACH A 52WEEK LOW IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MOST OF THE DISKDRIVE GROUP AND RELATED COMPANIES ARE PUSHING NEAR THEIR LOWS FOR THE YEAR AND THERE'S GREAT SKEPTICISM ABOUT WHETHER THEY CAN EVER RECOVER SAYS JAMES STONE AN ANALYST WITH PENN MERCHANT A BROKERAGE FIRM NEAR PHILADELPHIA THEY'RE SUFFERING THROUGH THE MOST VICIOUS PRICE WAR THAT WE'VE EVER SEEN APPLIED MAGNETICS'S GENERAL COUNSEL WHO WAS AMONG THE INSIDE SELLERS SAYS THE GROUP OF FIVE SENIOR EXECUTIVES WHO SOLD KNEW NOTHING AT THE TIME OF DEVELOPMENTS THAT LED TO THE COMPANY'S DECISION TO TAKE A LARGE FOURTHQUARTER CHARGE THOSE COMPANYSPECIFIC DEVELOPMENTS SAYS THE GENERAL COUNSEL RAYMOND P LEBLANC OCCURRED WEEKS LATER IN EARLY SEPTEMBER THE COMPANY IN ITS OCT 1 ANNOUNCEMENT SAID IT WOULD RECORD A RESTRUCTURING CHARGE OF ABOUT 50 MILLION FOR THE FULL YEAR CHIEFLY BECAUSE OF ORDER CANCELLATIONS IN EARLY SEPTEMBER FOR MAGNETIC AND THINFILM DISKHEAD PRODUCTS THE COMPANY ALSO SAID THAT IN ADDITION TO THE FOURTHQUARTER OPERATING LOSS IT ANTICIPATES AN OPERATING LOSS IN THE FIRST QUARTER OF FISCAL 1994 WE DIDN'T EXPECT AN OPERATING LOSS UNTIL WE EVALUATED THE IMPACT OF THE CANCELLATIONS MR LEBLANC SAYS CANCELLATION OF ORDERS FOR THINFILM DISK HEADS AMID A SLUMP IN THE COMPUTER DISKDRIVE INDUSTRY WAS A MAJOR UNEXPECTED DEVELOPMENT HE SAYS ON THE OTHER HAND MR LEBLANC ACKNOWLEDGES THE INSIDERS WERE WELL AWARE OF THE DETERIORATING CLIMATE FOR COMPUTER DISK DRIVES IN WHICH THE COMPANY WAS OPERATING TURMOIL IN MARKET WE KNEW THAT THE MARKET WAS NOT AS SOLID AS IT HAD BEEN WE KNEW IT WAS IN TURMOIL AT THE TIME OF THE SALES HE SAYS BUT WE DID NOT KNOW OF PENDING CANCELLATIONS OF THESE ORDERS AND THESE WERE MAJOR PORTIONS OF OUR REVENUES YET ANALYSTS WHO TRACK THE DISKDRIVE INDUSTRY SAY TROUBLE WITH ORDERS FOR THE HIGHCOST THINFILM DISK HEADS SHOULDN'T HAVE BEEN A HUGE SURPRISE FOR APPLIED MAGNETICS WHICH WAS AMONG THE FIRST COMPANIES TO DEVELOP THE TECHNOLOGY THE THINFILM DISKHEAD MARKET HAS SUFFERED FROM MAJOR PRICE CUTTING OVER THE LAST QUARTER AND FROM CANCELLATIONS AS DISKDRIVE MANUFACTURERS CONTINUE TO SCALE BACK PRODUCTION PLANS SAYS PENN MERCHANT'S MR STONE APPLIED'S THINFILM OPERATIONS HAD JUST STARTED TO BECOME PROFITABLE BUT NOW SEEM TO HAVE SLIPPED BACK HE ADDS NOTING THAT DISKDRIVE MANUFACTURERS ARE RESORTING INCREASINGLY TO CHEAPER MAGNETIC FERRITEBASED DESIGNS KNOWN AS METALINGAP OR MIG FOR DISK HEADS IN ANY EVENT APPLIED'S MR LEBLANC SAYS THE SENIOR INSIDERS' SALES HAD EVERYTHING TO DO WITH PERSONAL REASONS AND NOTHING TO DO WITH COMPANY PROSPECTS THERE HAVE BEEN OTHER CASES OF HEAVY INSIDER SELLING IN THE DISKDRIVE INDUSTRY IN RECENT WEEKS INCLUDING THOSE AT SEAGATE TECHNOLOGY THE SALES BY APPLIED INSIDERS WERE MEANT TO MEET PERSONAL FINANCIAL OBLIGATIONS TO PAY OFF SOME DEBT AND TAXES MR LEBLANC SAYS PEOPLE WERE USING THE PROCEEDS TO PAY OFF PERSONAL DEBT ACQUIRED FOR A VARIETY OF REASONS AND TO SATISFY WITHHOLDING TAX OBLIGATIONS RESULTING FROM THE VESTING OF RESTRICTED STOCK GRANTS TO THESE INDIVIDUALS FROM THE COMPANY FEDERAL SECURITIES LAWS PROHIBIT INSIDERS FROM TRADING ON MATERIAL INFORMATION OR SPECIFIC PRIVILEGED INFORMATION RELATING TO A COMPANY'S PERFORMANCE THOSE REGULATIONS DON'T PROHIBIT INSIDERS FROM TRADING ON PERSPECTIVES ON THE INDUSTRY'S OVERALL CLIMATE IF THEY TRADED ON ASSESSMENTS OF THE FUTURE OF THE INDUSTRY AS A WHOLE AND NOT ON COMPANY SPECIFIC CONFIDENTIAL INFORMATION THAT KIND OF TRADING DOES NOT COME UNDER SEC REGULATIONS SAYS NEJAT SEYHUN AN ASSOCIATE PROFESSOR OF FINANCE AND AN EXPERT ON INSIDERTRADING REGULATIONS AT THE UNIVERSITY OF MICHIGAN BUSINESS SCHOOL HOWEVER IF THEY OBTAINED THEIR INFORMATION ABOUT THE INDUSTRY'S PROSPECTS FROM EVENTS AT THEIR OWN FIRM THAT COULD BE TROUBLESOME WHEN THE IMPACT OF THE CANCELLATIONS ON THE COMPANY'S BOTTOM LINE BECAME CLEAR MR LEBLANC SAYS THE COMPANY IMMEDIATELY MADE THAT INFORMATION PUBLIC THE COMPANY FELT IT HAD TO TAKE APPROPRIATE ACTION TO MAKE THE APPROPRIATE RELEASE IRRESPECTIVE OF THE FACT THAT THESE PEOPLE TRADED BEFOREHAND THAT IS WITHOUT KNOWLEDGE OF SUBSEQUENT CANCELLATIONS HE SAYS MR LEBLANC SAID SALES BY SENIOR INSIDERS ALL OCCURRED WITHIN THE COMPANY'S OWN TRADING WINDOW USUALLY THE MONTH FOLLOWING THE REPORTING OF QUARTERLY RESULTS IN THE CASE OF THE AUGUST SALES THE WINDOW STRETCHED FROM JULY 22 THROUGH AUG 27 HE SAID THE COMPANY HAD SAID IN MAY THAT IT WAS REORGANIZING TO IMPROVE EFFICIENCIES AND REDUCE COSTS IN JULY CITING ANTICIPATION OF INCREASING COMPETITIVE PRESSURES IT ANNOUNCED IT WAS CUTTING ITS PAYROLL 15 LAST MONTH NOTING THE CANCELLATIONS OF SOME LARGE ORDERS FOR ITS DISK HEADS AND CONTINUING UNCERTAINTIES IN THE DISKDRIVE INDUSTRY IT SAID ITS FOURTHQUARTER REVENUE WAS EXPECTED TO DECLINE ABOUT 10 FROM THE THIRD QUARTER'S 974 MILLION THE COMPANY HAD OPERATING INCOME OF 181 MILLION IN THE YEAREARLIER FOURTH QUARTER ENDED SEPT 30 1992 AND 21 MILLION IN THE CURRENT FISCAL YEAR'S FIRST QUARTER ENDED DEC 31 9310130092 931013 AMERICA WEST AIRLINES TRAFFIC PHOENIX AMERICA WEST AIRLINES SAID SEPTEMBER TRAFFIC ROSE 55 TO 8844 MILLION REVENUE PASSENGER MILES FROM 8383 MILLION A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE AIRLINE SAID ITS SEPTEMBER LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED ROSE TO 624 FROM 559 FOR THE FIRST NINE MONTHS AMERICA WEST SAID TRAFFIC FELL 96 TO 834 BILLION REVENUE PASSENGER MILES FROM 922 BILLION LOAD FACTOR ROSE TO 651 FROM 62 9310130091 931013 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY SEPTEMBER 29 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9310130090 931013 MARKETING & MEDIA ADVERTISING BOZELL JACOBS GETS CHRYSLER JOB IS CLOSE TO ANOTHER FROM SUBARU BY KEVIN GOLDMAN TWO MAJOR AUTOMOTIVE DEVELOPMENTS JOLTED MADISON AVENUE AND PLACED BOZELL JACOBS KENYON & ECKHARDT IN THE DRIVER'S SEAT CHRYSLER REASSIGNED DOMESTIC AND CANADIAN ADVERTISING FOR ITS JEEP/EAGLE DIVISION ESTIMATED TO BE 135 MILLION TO BOZELL WORLDWIDE A UNIT OF BOZELL JACOBS FROM CMEKHBB A UNIT OF SAATCHI & SAATCHI AND THE CLOSELY WATCHED AD REVIEW BY SUBARU OF AMERICA OF ITS ESTIMATED 70 MILLION ACCOUNT HAS REACHED A HIGHLY UNUSUAL TENTATIVE CONCLUSION SUBARU TENTATIVELY PARKED ITS ADVERTISING AT TEMERLIN MCCLAIN A DALLAS UNIT OF BOZELL JACOBS WITH ESTIMATED ANNUAL BILLINGS OF 440 MILLION AND ABOUT 500 EMPLOYEES TO WORK ON A MARKETING AND COMMUNICATIONS PLAN FOR THE AUTOMOBILE MANUFACTURER WHOSE SALES CONTINUE TO DROP BUT INSTEAD OF GIVING TEMERLIN MCCLAIN THE ACCOUNT OUTRIGHT SUBARU SET A TIME LIMIT OF ABOUT TWO MONTHS FOR THE AGENCY TO PRESENT ITS MARKETING IDEAS IF THE AGENCY PASSES THIS ROUND THEN IT COULD BEGIN TO PRODUCE ADVERTISEMENTS SUBARU OFFICIALS SAY THEY DON'T EXPECT NEW ADS UNTIL THE YEAR END AT THE EARLIEST THE ACCOUNT HAS BEEN IN REVIEW SINCE LATE JULY WHEN SUBARU FIRED WIEDEN & KENNEDY AFTER TWO YEARS OF POORLY RECEIVED ADVERTISING EXECUTIVES AT SUBARU A UNIT OF FUJI HEAVY INDUSTRIES OF JAPAN WILL WORK CLOSELY WITH THE AGENCY AT THE END OF 60 DAYS SUBARU WILL PRESENT THE AGENCY'S PROPOSALS TO ITS AD AGENCY REVIEW COMMITTEE REPRESENTATIVES OF ITS DEALERS AND OTHER SUBARU OFFICIALS IF TEMERLIN MCCLAIN STUMBLES THEN SUBARU WILL MOVE ONTO ANOTHER AGENCY AND THE PROCESS WILL BEGIN ALL OVER AGAIN IT IS UNUSUAL SAYS MARK DUNN SUBARU'S ADVERTISING MANAGER BUT THE REJECTED AGENCIES APPRECIATED THE FACT THAT WE WEREN'T GOING TO MAKE THEM JUMP THROUGH HOOPS BY HAVING THEM MEET WITH US AND THEN NARROW THE LIST TO A FEW AND MAKING THOSE FINALISTS COME BACK TO US IN 30 DAYS WITH STRATEGIC IDEAS IT WOULD BE UNFAIR TO PUT AGENCIES THROUGH THIS EXERCISE IN THAT CASE THE AGENCIES SPARED INCLUDE AC&R BLOOM FCA OMNICOM GROUP'S TBWA AMMIRATI & PURIS FALLON MCELLIGOTT AMONG OTHERS THE AGENCIES BEGAN RECEIVING CALLS FROM MR DUNN LAST FRIDAY AND CONTINUED TO RECEIVE THEM YESTERDAY INFORMING THE SHOPS OF SUBARU'S DECISION MR DUNN SAYS TEMERLIN MCCLAIN MORE THAN ANY OF THE OTHER CONTENDERS HAS GOOD SYNERGY WITH OUR PEOPLE THEY ALSO HAVE THE CAPACITY TO HANDLE THE COMPLEXITY OF OUR ACCOUNT THE PERSONALITIES AND CHEMISTRY WERE THERE THEY DEMONSTRATED THAT THEY UNDERSTAND US SUBARU IS CLEARLY IN TROUBLE WHILE SALES IN THE AUTOMOBILE INDUSTRY WERE UP 3 IN THE FIRST NINE MONTHS THIS YEAR COMPARED WITH THE SAME PERIOD A YEAR EARLIER SUBARU'S SALES DROPPED 8 ACCORDING TO SUSAN JACOBS OF JACOBS AUTOMOTIVE AN AUTOMOTIVE FORECASTING AND CONSULTING COMPANY BASED IN RUTHERFORD NJ MS JACOBS SAYS SUBARU SOLD 73630 CARS IN THE FIRST NINE MONTHS OF THIS YEAR DOWN FROM 80329 CARS A YEAR EARLIER SUBARU AND ITS FORMER AD AGENCY MISFIRED BADLY WITH A SERIES OF ADS THAT PLACED TOO MUCH EMPHASIS ON THE PERSONALITY OF A SUBARU OWNER AND FOCUSED LITTLE ON THE AUTOMOBILE'S BENEFITS ONE RECENT AD WHICH WAS PARTICULARLY CRITICIZED BY MARKETING CONSULTANTS FEATURED RAPIDLY EDITED SHOTS OF A WOMAN FILLING A SUBARU WITH GASOLINE SHE TALKED NONSTOP ABOUT THE 1969 WORLD SERIES AND MADE EXTRANEOUS COMMENTS ABOUT THE CAR TEMERLIN MCCLAIN IS USED TO TOUGH CHALLENGES THE AGENCY WHICH WAS BORN OUT OF A RESTRUCTURING OF BOZELL JACOBS IN JUNE 1982 WHEN IT WAS ORIGINALLY KNOWN AS BOZELL/SOUTHWEST HANDLED THE ADVERTISING IN THE LAST SIX WEEKS OF ROSS PEROT'S FAILED INDEPENDENT PRESIDENTIAL CAMPAIGN OTHER TEMERLIN MCCLAIN ACCOUNTS INCLUDE JC PENNEY AMERICAN AIRLINES AND GREYHOUND LINES THE BUS COMPANY WE FEEL THAT AS A TEAM WE CAN SOLVE SUBARU'S PROBLEM VERY EFFECTIVELY SAYS DENNIS MCCLAIN THE AGENCY'S PRESIDENT WE NEED TO PUT COMMUNICATIONS AND ADVERTISING STRATEGY TOGETHER THAT SPELLS OUT THE POSITIONING FOR SUBARU'S STRENGTH ONE OF SUBARU'S PROBLEMS SAYS MS JACOBS IS THAT ITS CARS MOSTLY SUBCOMPACTS DON'T STAND OUT FROM THE CROWD THE CARS LIKE THE IMPREZA AREN'T IMPRESSIVE ENOUGH IN A HIGHLY COMPETITIVE ENVIRONMENT ESPECIALLY WHEN THEY ARE STACKED AGAINST THE COMPETITION INCLUDING SATURN SAYS MS JACOBS SUBARU SHE CONTINUES HASN'T PRODUCED ADS THAT ARE CALLS TO ACTION TO GET CONSUMERS INTO THE SHOWROOM IT NEGLECTED TO PRODUCE ANY PRICEINCENTIVE ADVERTISING WHICH WAS A MAJOR MISTAKE IF TEMERLIN MCCLAIN IS ABLE TO RETAIN THE ACCOUNT IT WILL BE A MAJOR WIN NOT ONLY FOR IT BUT FOR PARENT BOZELL JACOBS AS WELL BOZELL HANDLES CHRYSLER ADVERTISING AND THE POTENTIAL WIN OF SUBARU WOULD ADD ANOTHER BIGBUDGET AUTOMOTIVE ACCOUNT TO THE ROSTER MR MCCLAIN SAYS THERE WON'T BE A CONFLICT OF INTEREST WITHIN BOZELL JACOBS BECAUSE TEMERLIN MCCLAIN IS INDEPENDENTLY MANAGED IT BECAME INDEPENDENT A YEAR AGO AND STAYED ON THE SIDELINES UNTIL NOW BEFORE ACTIVELY PURSUING A CAR ACCOUNT WHILE SUBARU MADE SOME COSTLY ADVERTISING AND MARKETING BLUNDERS CHRYSLER'S JEEP/EAGLE DIVISION SEEMS TO BE DOING THINGS RIGHT ACCORDING TO MS JACOBS SALES FOR JEEP/EAGLE VEHICLES ROSE 60 TO 298603 IN THE FIRST NINE MONTHS OF THIS YEAR COMPARED WITH THE YEAREARLIER PERIOD THE DIVISION'S MARQUEE VAN THE GRAND CHEROKEE FARED EVEN BETTER WITH SALES MORE THAN TRIPLING TO 146893 SAYS MS JACOBS THE CHANGE IN CHRYSLER AGENCIES WAS RUMORED FOR QUITE SOME TIME BUT THE ULTIMATE SOLUTION IS QUITE UNUSUAL THE ENTIRE CMEKHBB TEAM ALL 280 WILL SIMPLY CEASE BEING EMPLOYED BY CME AND WILL INSTEAD BECOME BOZELL EMPLOYEES FURTHER BOZELL PAID CME AN UNDISCLOSED AMOUNT FOR ITS OFFICES SAYS WILLIAM D DUNLAP WORLDWIDE CHIEF EXECUTIVE OFFICER OF CME IT'S UNPRECEDENTED IN THE HISTORY OF THE AD BUSINESS IT SHOWS WE HAVE DONE A SUPERB JOB THE LOSS MEANS THAT CME WHICH SAATCHI & SAATCHI LAUNCHED AS A THIRD AGENCY NETWORK LAST YEAR WILL BE WITHOUT A PRESTIGIOUS DOMESTIC AUTOMOTIVE ACCOUNT THAT PRESENTS A SIGNIFICANT SETBACK BUT MR DUNLAP NOTES THAT THE AGENCY HANDLES SAAB ADVERTISING OVERSEAS OF CHRYSLER'S THREE AGENCIES BOZELL CME AND OMNICOM'S BBDO INDUSTRY OBSERVERS SAY CME WAS ALWAYS THE MOST VULNERABLE CME CAME LAST TO THE CHRYSLER ROSTER OF AGENCIES WHEN IN 1987 CHRYSLER BOUGHT THE JEEP DIVISION FROM THE NOWDEFUNCT AMERICAN MOTORS AND CME WAS JEEP'S EXISTING AGENCY IN FACT AT THE TIME CME HAD TO CONVINCE CHRYSLER TO KEEP IT ON THE JEEP/EAGLE ACCOUNT INDUSTRY OBSERVERS FELT FOR A WHILE THAT CHRYSLER WASN'T GOING TO STAY WITH THREE AGENCIES AND WOULD INDEED CONSOLIDATE ITS AD BUSINESS IN A STATEMENT THEODOR R CUNNINGHAM CHRYSLER'S EXECUTIVE VICE PRESIDENT OF SALES AND MARKETING SAID THE QUALITY OF THE CREATIVE PRODUCT SUPPLIED BY CMEKHBB HAS BEEN SUPERB AND I'M HAPPY THAT BOZELL AGREES AND HAS DECIDED TO EMPLOY THE ENTIRE CMEKHBB JEEP/EAGLE DETROIT AND FIELD OFFICE TEAM HE CONTINUED STRATEGICALLY THIS DECISION IS CONSISTENT WITH CHRYSLER'S EFFORTS TO DEVELOP CLOSER RELATIONSHIPS WITH A CORE GROUP OF SUPPLIERS FOCUS OUR MARKETING RESOURCES AS EFFECTIVELY AS POSSIBLE AND BETTER SERVE THE NEEDS OF THE INCREASING NUMBER OF DEALERS WHO HAVE BOTH CHRYSLER/ PLYMOUTH AND JEEP/EAGLE FRANCHISES MOLSON BREWERIES USA A UNIT OF PHILIP MORRIS COS' MILLER BREWING SUBSIDIARY IS REVIEWING FIVE AGENCIES PITCHING FOR THE MOLSON BRAND THE ACCOUNT IS EXPECTED TO BILL 40 MILLION NEXT YEAR THE ACCOUNT CURRENTLY AT INTERPUBLIC GROUP'S LINTAS NEW YORK IS EXPECTED TO BILL ABOUT 10 MILLION THIS YEAR KNOWLEDGABLE EXECUTIVES SAID THAT AD SPENDING IS EXPECTED TO QUADRUPLE NEXT YEAR WHEN MOLSON AND MILLER EXPAND THE BEER INTO NATIONAL DISTRIBUTION IN ADDITION TO LINTAS THE CONTENDERS FOR THE ACCOUNT ARE BELIEVED TO INCLUDE FOUR AGENCIES ON THE MILLER BREWING ROSTER THEY ARE SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES NEW YORK WHICH CREATES ADS FOR MILLER GENUINE DRAFT CLIFF FREEMAN & PARTNERS NEW YORK ANOTHER SAATCHI UNIT THAT CREATED ADS FOR MILLER'S ILLFATED MILLER CLEAR BEER YOUNG & RUBICAM NEW YORK WHICH HANDLES SEVERAL SMALLER MILLER BRANDS INCLUDING HIGH LIFE AND BAYER BESS VANDERWARKER A CLOSELY HELD CHICAGO AGENCY THAT MILLER ADDED TO ITS STABLE IN AUGUST THE REVIEW IS YET ANOTHER SETBACK FOR LINTAS THE MOLSON INCUMBENT LINTAS LAST WEEK LOST COCACOLA'S ESTIMATED 60 MILLION DIET COKE ACCOUNT AND IS CURRENTLY DEFENDING THE ESTIMATED 40 MILLION INTERNATIONAL BUSINESS MACHINES PERSONALCOMPUTER ACCOUNT IN THE US JOHN BARNETT CHIEF EXECUTIVE AND PRESIDENT OF MOLSON'S US OPERATIONS DECLINED TO COMMENT ON THE IDENTITIES OF THE AGENCIES INVOLVED BUT SAID THEIR CREATIVE WORK IS BEING TESTED WITH CONSUMERS 9310130088 931013 PENNZOIL'S SALE OF DEBENTURES HOUSTON PENNZOIL CO SAID IT COMPLETED THE SALE OF 500 MILLION OF 475 DEBENTURES EXCHANGEABLE AT THE OPTION OF HOLDERS INTO A TOTAL OF 4251000 SHARES OF CHEVRON CORP COMMON STOCK THAT IS OWNED BY PENNZOIL THE DEBENTURES' RATE OF EXCHANGE IS 117625 FOR EACH CHEVRON SHARE THE DEBENTURES ARE SCHEDULED TO MATURE OCT 1 2003 AND ARE CALLABLE AS OF OCT 1 1998 PENNZOIL SAID PROCEEDS WILL BE USED TO REDUCE DEBT AND FOR GENERAL CORPORATE PURPOSES PENNZOIL CURRENTLY OWNS 172 MILLION CHEVRON SHARES OR 53 THE SHARES ARE THE REMAINDER ROUGHLY HALF OF A LARGER CHEVRON STAKE THAT PENNZOIL ACCUMULATED FROM 1989 THROUGH 1991 LAST YEAR PENNZOIL SWAPPED ABOUT HALF OF ITS STAKE FOR CHEVRON OIL AND NATURALGAS RESERVES 9310130086 931013 MARKETING & MEDIA CUC TO CREATE HOMESHOPPING SERVICES FOR TIME WARNER AND VIACOM SYSTEMS BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MASS TELEMARKETER CUC INTERNATIONAL INC IS TEAMING UP WITH TWO CABLE INDUSTRY GIANTS TIME WARNER INC AND VIACOM INC TO CREATE AN INTERACTIVE HOMESHOPPING SERVICE FOR THEIR TRIAL CABLE SYSTEMS OF THE FUTURE THE NEW SERVICE WHICH THE COMPANIES SAY WILL ALLOW VIEWERS TO PURCHASE A RANGE OF BRANDNAME PRODUCTS ON DEMAND WILL MAKE ITS DEBUT ON TIME WARNER'S FULLSERVICE NETWORK IN ORLANDO FLA BY THE END OF 1994 THE CUC SERVICE WILL RUN ON VIACOM'S TEST CABLE SYSTEM IN CASTRO VALLEY CALIF WHERE VIACOM AND PARTNER AMERICAN TELEPHONE & TELEGRAPH CO PLAN TO LAUNCH AN ARRAY OF INTERACTIVE SERVICES FOLLOWING THE SEPARATE ANNOUNCEMENTS CUC STOCK SHOT UP 4125 TO FINISH AT 38125 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE IN THE LONG RUN IT'S A CONTENT GAME SAID WALTER FORBES CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CUC WE FELT WE HAD CONTENT THAT WAS VALUABLE ENOUGH NOT TO GRANT EXCLUSIVE RIGHTS IT WAS IMPORTANT ENOUGH FOR US TO BE IN AS MANY HOMES AS POSSIBLE THE AGREEMENT MARKS AN AGGRESSIVE STRATEGY BY TIME WARNER THE NATION'S SECONDLARGEST CABLE OPERATOR TO BUILD A FOOTHOLD IN ONE OF THE FASTESTGROWING SEGMENTS OF THE CABLE INDUSTRY JUST LAST MONTH TIME WARNER AGREED TO LAUNCH TWO CHANNELS ONE ON REGULAR CABLE TV AND ONE ON ITS PLANNED FULLSERVICE INTERACTIVE NETWORK WITH CATALOG POWERHOUSE SPIEGEL INC OFFERING UPSCALE NAMEBRAND MERCHANDISE FOR VIACOM THE CUC AGREEMENT IS ITS FIRST FORAY INTO HOME SHOPPING MOREOVER THE DEALS WITH CUC HEIGHTEN THE TWO COMPANIES' COMPETITION WITH THE NATION'S LARGEST CABLETV COMPANY TELECOMMUNICATIONS INC IN THE BUSINESS OF HOME SHOPPING TCI RECENTLY AGREED TO ACQUIRE ITS SPINOFF LIBERTY MEDIA INC WHICH CONTROLS OR PARTLY CONTROLS THE TWO TELEVISION HOME SHOPPING GIANTS THAT NOW DOMINATE THE 25 BILLION INDUSTRY QVC NETWORK INC AND HOME SHOPPING NETWORK INC QVC AND HOME SHOPPING NETWORK ARE NOW WEIGHING A PROPOSED 14 BILLION STOCK MERGER VIACOM FOR ITS PART IS LOCKED IN A BITTER TAKEOVER BATTLE AGAINST QVC FOR CONTROL OF PARAMOUNT COMMUNICATIONS INC THE NEW VENTURES WILL DRAW ON CUC'S EXPERIENCE IN TELEPHONEBASED CONSUMER MARKETING AND CONSULTING TO 30 MILLION PAYING MEMBERS CURRENTLY CUC BASED IN STAMFORD CONN GIVES MEMBERS ACCESS TO A DATABASE OF 250000 BRANDNAME PRODUCTS FROM WHICH THEY CAN CHECK PRICES COMPARE FEATURES AND ORDER ITEMS PRODUCTS INCLUDE CONSUMER ELECTRONICS APPLIANCES VACATION PACKAGES AND EVEN CARS WITH THE NEW SERVICES IF VIEWERS ARE INTERESTED IN BUYING A VACATION PACKAGE TO HAWAII FOR EXAMPLE THEY CAN PREVIEW HOTEL ROOMS AND BEACH SITES USING A REMOTE CONTROL SAID MR FORBES YOU CAN TAKE AWAY THE DESTINATION UNCERTAINTY HE SAID THIS IS POWERFUL STUFF CUC WILL USE ITS EXISTING SYSTEMS TO PROCESS PURCHASES MADE THROUGH THE NEW SERVICES INCLUDING ORDER ENTRY BILLING AND DELIVERY THE PARTNERS DID NOT DISCLOSE THE AMOUNT TO BE INVESTED IN THE NEW SERVICE 9310130085 931013 SUNTRUST BARNETT NET ROSE STRONGLY IN THIRD QUARTER MELLON PROFIT FELL BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL TWO MAJOR REGIONAL BANKS REPORTED STRONG GAINS IN THIRDQUARTER EARNINGS REFLECTING A CONTINUED DECLINE IN BAD LOANS WHILE A THIRD POSTED LOWER PROFIT SUNTRUST BANKS INC IN ATLANTA SAID NET INCOME ROSE 13 IN JACKSONVILLE FLA BARNETT BANKS INC REPORTED A 56 INCREASE IN EARNINGS BUT MELLON BANK CORP IN PITTSBURGH REPORTED A 27 DROP REFLECTING SOME ONETIME GAINS IN THE YEAREARLIER QUARTER HOWEVER SHARES IN ALL THREE BANK HOLDING COMPANIES CLOSED HIGHER IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE MELLON WHICH PUT A POSITIVE SPIN ON ITS RESULTS MADE THE LARGEST JUMP 3125 OR 57 TO CLOSE AT 5825 BARNETT STOCK INCHED UP 125 CENTS OR 03 TO 4425 AND SUNTRUST SHARES ROSE 25 CENTS OR 06 TO 4375 SUNTRUST SAID IT CONTINUED TO TRIM COSTS AND REDUCE BAD LOANS NONINTEREST EXPENSE FELL MORE THAN 4 MILLION TO 3469 MILLION MEANWHILE NONPERFORMING ASSETS DROPPED TO 468 MILLION FROM 6024 MILLION A YEAR EARLIER ALONG WITH ITS EARNINGS REPORT SUNTRUST SAID IT PLANS TO BUY BACK AS MANY AS 12 MILLION SHARES OF ITS COMMON STOCK WITH APPROXIMATELY 125 MILLION SHARES OUTSTANDING THE BUYBACK REPRESENTS NEARLY 10 OF THE COMMON AND TAKES ADVANTAGE OF SUNTRUST'S STRONG BALANCE SHEET THE BUYBACK THE LARGEST SUCH PROGRAM EVER UNDERTAKEN BY THE COMPANY MAKES A TREMENDOUS AMOUNT OF SENSE SAID DENNIS F SHEA AN ANALYST WITH MORGAN STANLEY & CO IN NEW YORK HOPEFULLY WE'LL SEE OTHER BANKS FOLLOW THIS LEAD BARNETT'S EARNINGS ROSE 56 HITTING A RECORD HIGH THE COMPANY CONTINUING ITS EFFORT TO BOOST CREDIT QUALITY BROUGHT NONPERFORMING ASSETS DOWN 39 TO 597 MILLION FROM THE YEAREARLIER PERIOD FOR THE FIRST TIME SINCE EARLY 1990 THE BANK'S NONPERFORMING ASSETS REPRESENTED LESS THAN 25 OF TOTAL LOANS AND OTHER REAL ESTATE OWNED NET CHARGEOFFS AT BARNETT FELL 57 TO 274 MILLION IN ADDITION TO THE STRIDES IN CREDIT QUALITY THE BANK CITED IMPROVED EXPENSE CONTROL AS A FACTOR IN ITS STRONG EARNINGS IN THE PAST YEAR SINCE ACQUIRING FIRST FLORIDA BANKS INC BARNETT HAS CLOSED 98 OFFICES AND REDUCED ITS WORK FORCE BY 2700 EMPLOYEES TOTAL LOANS AT BARNETT REMAINED RELATIVELY FLAT AT 259 BILLION UP SLIGHTLY SINCE JUNE 30 BUT DOWN 1 FROM THE YEAREARLIER PERIOD THE COMPANY ATTRIBUTED THE LACKLUSTER LOAN PERFORMANCE TO CONTINUED SOFTNESS IN COMMERCIAL REALESTATE MARKETS AS WELL AS CORPORATE BORROWERS' EFFORTS TO REDUCE DEBT AND FIND CHEAPER FUNDING SOURCES THE BANK IS PLACING INCREASING EMPHASIS ON SMALLBUSINESS LOAN DEVELOPMENT AND IT REPORTED 150 MILLION IN LOANS AND COMMITMENTS IN THIS BUSINESS SECTOR SO FAR THIS YEAR MELLON'S 1992 THIRD QUARTER WAS BOLSTERED BY SECURITIES GAINS AND TAXLOSS CARRYFORWARDS THE COMPANY SAID THAT ON A FULLY TAXED BASIS EXCLUDING SECURITIES GAINS AND RESTRUCTURING GAINS IT EARNED 71 MILLION OR 104 A SHARE IN THE YEAREARLIER PERIOD THE COMPANY USED THAT FIGURE IN TRYING TO PUT THE BEST SPIN ON ITS PERFORMANCE PUTTING OUT A NEWS RELEASE WITH THE HEADLINE ANNOUNCING SHARPLY HIGHER EARNINGS THE BANK ALSO CITED EARNINGS INCREASES FROM ITS PURCHASES LAST YEAR OF BOSTON CO AND THE PHILADELPHIA FRANCHISE OF MERITOR SAVINGS BANK AS WELL AS A LOWER TAX RATE AND BETTER CREDIT QUALITY THE COMPANY'S TAX RATE WAS REDUCED FOR THE SECOND HALF OF 1993 TO 385 FROM 41 AN ADJUSTMENT THAT ADDED ABOUT 44 MILLION TO EARNINGS IN THE QUARTER IN ADDITION A ONETIME RETROACTIVE ADJUSTMENT FOR THE FIRST TWO QUARTERS OF THIS YEAR ADDED ABOUT 5 MILLION OR SEVEN CENTS A SHARE TO THIRDQUARTER EARNINGS VALERIE REITMAN CONTRIBUTED TO THIS ARTICLE 9310130084 931013 TECHNOLOGY & HEALTH CLINTON AIMS TO SEND HEALTH PROPOSAL TO CAPITOL HILL AS SOON AS NEXT WEEK BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SEEKING TO COUNTER CRITICISM THAT IT HAS LOST PRECIOUS MOMENTUM IN PROMOTING ITS HEALTHCARE PLAN THE CLINTON ADMINISTRATION SAID IT'S AIMING TO SEND A DETAILED LEGISLATIVE PROPOSAL TO CAPITOL HILL NEXT WEEK WE THINK WE'LL BE READY BY THE END OF NEXT WEEK ALTHOUGH THE DATE COULD STRETCH OUT A FEW MORE DAYS SAID SENIOR WHITE HOUSE ADVISER IRA MAGAZINER HE STRESSED THAT A FINAL SCRUBBING OF THE NUMBERS CONTAINED IN THE PROPOSAL WAS EXPECTED TO BE COMPLETED TODAY BY ANALYSTS AT THE TREASURY AND OFFICE OF MANAGEMENT AND BUDGET THE NUMBERS STUFF IS PRETTY WELL RESOLVED MR MAGAZINER SAID ONE ADMINISTRATION OFFICIAL SAID PRESIDENT CLINTON AND HILLARY RODHAM CLINTON SPOKE WITH MR MAGAZINER YESTERDAY AND MADE CLEAR THAT THEY ARE UPSET ABOUT THE GROWING OUTCRY FOR DELIVERY OF THE COMPLETED LEGISLATION INDEED THE HOLDUP HAS BECOME A LIGHTNING ROD FOR REPUBLICANS AND EVEN SOME DEMOCRATS ARE QUESTIONING HOW THEY CAN SUPPORT SOMETHING THAT HASN'T BEEN SPELLED OUT IN DETAIL HOUSE WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI D ILL FOR ONE HAS WARNED THE ADMINISTRATION AGAINST DELAYING MUCH LONGER JUST LAST FRIDAY DEPUTY TREASURY SECRETARY ROGER ALTMAN SAID THE UNVEILING OF THE FINAL PROPOSAL COULD BE AS MANY AS FIVE WEEKS AWAY BUT WHITE HOUSE SPOKESWOMAN DEE DEE MYERS TOLD REPORTERS YESTERDAY I THINK IT'LL COME SOONER THAN THAT I THINK THERE IS A LOT OF URGENCY ATTACHED TO IT AFTER THE PRESIDENT'S HEALTHCARE LEGISLATION MOVES TO CONGRESS IT'S STILL UNCERTAIN HOW SWIFTLY THINGS CAN PROCEED REP JOHN DINGELL D MICH THE CHAIRMAN OF THE ENERGY AND COMMERCE COMMITTEE WROTE A LETTER LAST WEEK TO HOUSE SPEAKER THOMAS FOLEY COMPLAINING THAT NO COHERENT PROCEDURAL STRATEGY HAS BEEN DISCUSSED OR DEVISED FOR PROCESSING THE PRESIDENT'S BILL THE RESULT HE CAUTIONED IS THAT THINGS COULD BECOME SO CHAOTIC AS TO DESTROY ANY OPPORTUNITY TO DEVELOP CONSIDER OR PASS A SERIOUS BILL NEXT YEAR SEPARATELY YESTERDAY THE HEALTH INSURANCE ASSOCIATION OF AMERICA UNVEILED ITS SECOND TELEVISION ADVERTISEMENT ATTACKING THE CLINTON HEALTHCARE PLAN THE AD PART OF A NEW 2 MILLION TV RADIO AND PRINT CAMPAIGN BY THE INDUSTRY GROUP SUGGESTS THAT UNDER THE PRESIDENT'S PROPOSAL THE GOVERNMENT CAPS HOW MUCH THE COUNTRY CAN SPEND ON ALL HEALTH CARE AND SAYS THAT'S IT' THE AD THEN RAISES THE QUESTION SO WHAT IF OUR HEALTH PLAN RUNS OUT OF MONEY WHITE HOUSE HEALTHCARE SPOKESMAN KEVIN ANDERSON SAID THE ADMINISTRATION WAS DEEPLY DISAPPOINTED THAT THE HIAA IS CONTINUING THEIR CAMPAIGN OF DISTORTION AND MISINFORMATION ABOUT OUR HEALTHCARE PLAN HE NOTED THAT THE CLINTON PROPOSAL WOULD CAP THE GROWTH OF PRIVATESECTOR HEALTH PREMIUMS FOR A FEDERALLY GUARANTEED PACKAGE OF BENEFITS BUT IT WOULDN'T LIMIT TOTAL HEALTH SPENDING OR PREVENT PEOPLE FROM BUYING SUPPLEMENTAL COVERAGE THE CLINTON PLAN ALSO PROPOSES SETTING UP SPECIAL BACKUP FUNDS IN CASE ANY HEALTH PLAN FAILS SIMILAR TO SAFETY NETS ALREADY IN PLACE IN MANY STATES THE HIAA'S FIRST TV SPOT WHICH CONTENDED THAT THE CLINTON HEALTH PLAN WOULD LIMIT CHOICES FOR CONSUMERS WAS PART OF AN INITIAL 17 MILLION CAMPAIGN IN THAT CASE THE DEMOCRATIC NATIONAL COMMITTEE PUT TOGETHER ITS OWN REBUTTAL AD THE DNC HAS NO PLANS FOR ANOTHER COUNTER AD BUT RICHARD CELESTE THE FORMER OHIO GOVERNOR WHO IS LEADING A DNC EFFORT TO SELL THE CLINTON HEALTHCARE PACKAGE HAS CALLED THE HIAA'S LATEST STATEMENTS FLATOUT WRONG MARY AGNES CAREY CONTRIBUTED TO THIS ARTICLE 9310130083 931013 INTERNATIONAL FIAT TO FURLOUGH WORKERS TURIN ITALY ITALY'S AUTO GIANT FIAT SPA SAID IT WILL LAY OFF BETWEEN 13450 AND 38250 WORKERS IN NOVEMBER TO CUT ITS PRODUCTION BY 36500 CARS THE ITALIAN COMPANY WHICH EMPLOYS 129000 IN ITS AUTO DIVISION HAS BEEN RESORTING TO TEMPORARY SUSPENSIONS SINCE 1992 TO REDUCE ITS PRODUCTION AND STOCKS FOLLOWING A STEADY SLUMP OF AUTO SALES IN THE DOMESTIC AND EUROPEAN MARKETS CAR SALES IN ITALY FELL 138 IN SEPTEMBER FROM A YEAR EARLIER AND DROPPED 223 IN THE FIRST NINE MONTHS OF 1993 FROM THE YEARAGO PERIOD 9310130081 931013 REVIEW & OUTLOOK EDITORIAL A DEATH IN THE FAMILY THE ORDEAL IS OVER FOR TWO YEARS WHILE YUGOSLAVIA BURNED GATT FLOUNDERED RUSSIA RUMBLED EASTERN EUROPE STRUGGLED UNEMPLOYMENT MOUNTED AND ECONOMIES STAGNATED EUROPEAN POLITICAL LEADERS ENGAGED IN THEOLOGICAL DEBATES OVER SUBSIDIARITY HARMONIZATION FEDERALISM DEEPENING BROADENING AND OTHER ARCANA AT THE END OF THIS LONG DISPUTE THE MAASTRICHT TREATY HAS EMERGED VICTORIOUS AND DEAD BRING A FUNERAL WREATH TO THE RATIFICATION CEREMONY EVEN THOUGH A GERMAN COURT YESTERDAY GAVE FINAL CLEARANCE OF A SORT TO THE TREATY EUROPE IS TODAY FURTHER AWAY FROM THE UNITED STATES OF EUROPE A PHRASE HELMUT KOHL NO LONGER USES THAN IT WAS TWO YEARS AGO OF COURSE THE FINGERNAILS OF EUROPEAN UNION CONTINUE TO GROW EC LEADERS WILL MEET LATER THIS MONTH TO AGREE ON A SITE FOR THE EUROPEAN MONETARY INSTITUTE MONETARY UNION'S INCUBATOR OUR ADVICE IS RENT A BUILDING DON'T BUY JOHN MAJOR IS SURELY RIGHT WHEN HE SAYS THAT THE PLAN TO COMPLETE EUROPEAN MONETARY UNION HAS ALL THE QUAINTNESS OF A RAIN DANCE AND ABOUT THE SAME POTENCY ONE OF THE CONCEITS OF THE MAASTRICHT PROCESS WAS THAT EUROPEAN LEADERS MISTOOK THEIR PRONOUNCEMENTS FOR EVENTS DECLARATIONS ABOUT THE CONTINUED VIABILITY OF MONETARY UNION ARE NOT IMPORTANT NEXT TO THE REALITY THAT EUROPEAN ECONOMIES ARE DIVERGING AMAZINGLY THERE ARE INDEED A FEW EUROPHILES WHO BELIEVE THAT THEIR PLANS ARE SOMEHOW UNAFFECTED BY THE CURRENCY TURMOILS OF THE PAST YEAR THE OTHER CONCEIT OF THE MAASTRICHT PROCESS WAS THE BELIEF THAT THE MEN WHO SAT IN FRONT OF THE PLACARDS READING DENMARK OR FRANCE ACTUALLY SPOKE FOR THOSE COUNTRIES WHEN IN FACT THEY MERELY SPOKE FOR ONE FACTION OF EACH NATIONAL POLITICAL CLASS WE PUBLISHED AN EDITORIAL JUST BEFORE MAASTRICHT WONDERING WHERE THE POPULAR DEBATE ON THE ISSUE WAS BELATEDLY IT CAME AND THE TABOOS FELL IT BECAME POSSIBLE IN GERMANY TO OPPOSE MONETARY UNION WITHOUT BEING CONSIDERED REACTIONARY IN FRANCE TOO IT BECAME POSSIBLE TO SAY THAT THE EMPEROR HAD NO CLOTHES NOW 54 OF FRENCHMEN SAY THEY WOULD VOTE AGAINST MAASTRICHT IF GIVEN ANOTHER CHANCE TODAY THE INTELLECTUAL CLIMATE HAS CHANGED UTTERLY THE PAST TWO YEARS HAVE SHOWN THAT WHEN PUSH COMES TO SHOVE EVEN EUROPHILES PLACE NATIONAL INTERESTS OVER EUROPEAN INTERESTS NOR HAVE THERE BEEN SIGNS THAT THERE IS A EUROPEAN SOLUTION TO THE ECONOMIC STAGNATION WHICH IS SYSTEMIC AS WELL AS CYCLICAL THE CHALLENGE OF THE NEXT FEW YEARS IS TO REFORM BLOATED WELFARE STATES AND TO RESTORE THE COMPETITIVE POSITION OF EUROPEAN WORKERS THE COMMISSION IS WORKING ON A JOB CREATION PACKAGE BUT IT IS SAID TO BE TEPID THERE IS NO INDICATION THAT THE SERIOUS THINKING ON THESE ISSUES WILL BE DONE IN BRUSSELS THE FEAR NOW IS THAT IN OVERREACHING THE EUROPHILES MAY HAVE ACTUALLY CAUSED A BACKLASH ENDANGERING THE MOST WORTHY EUROPEAN IDEAL THE FREE MOVEMENT OF GOODS AND PEOPLE WE'VE DOUBTED TALK OF A FORTRESS EUROPE IN THE PAST NOW WE ARE NOT SO SURE IF THE EC IS HELD RESPONSIBLE FOR A COLLAPSE OF THE GATT ROUND THEN THE ORGANIZATION WILL HAVE EATEN ITS VERY SOUL AND ITS MORAL LEGITIMACY WILL BE IN DOUBT THE OLD DREAM OF A CENTRALIZED TECHNOCRATIC EC IS GONE BUT ITS DEATH IS A GREAT OPPORTUNITY FOR THOSE WHO CAN CONCEIVE ANOTHER VERSION OF 21ST CETURY EUROPE THE NEXT EUROPEAN VISION WILL TAKE INTO ACCOUNT THE NEWLY INDEPENDENT EAST THE CHALLENGES OF A FAST MOVING GLOBAL ECONOMY AND THE FLEXIBILITY IT REQUIRES BUT SOMEDAY A FLEXIBLE VISION OF EUROPE WILL EMERGE THE OLD EUROPEAN DREAM IS DEAD LONG LIVE THE NEXT ONE 9310130080 931013 COMPUTERS LOTUS PROVES IT'S BACK IN THE BALLGAME BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL IT'S A HORSE RACE AGAIN IN PERSONALCOMPUTER SOFTWARE WITH A STRONG EARNINGS REPORT EXPECTED TOMORROW SOFTWARE MAKER LOTUS DEVELOPMENT CORP WILL CONFIRM A SOLID COMEBACK DEMONSTRATING THAT IT'S POSSIBLE TO COMPETE HEADON WITH MICROSOFT CORP AFTER ALL LOTUS'S REVIVAL ONE PART INNOVATION AND ONE PART MARKETING IS SHIFTING THE COMPETITIVE DYNAMICS OF THE SOFTWARE INDUSTRY MAKING THE MARKET A MORE HOSTILE PLACE FOR SMALLER PLAYERS FOR YEARS LOTUS HAS LAGGED BEHIND MICROSOFT WHICH OWNS THE BASIC OPERATING SYSTEM MOST SOFTWARE MAKERS MUST ADOPT IN THEIR PRODUCTS THE CONVENTIONAL WISDOM HAS BEEN THAT THIS GAVE AN OVERWHELMING EDGE TO MICROSOFT IN BRINGING OUT NEW TYPES OF APPLICATIONS SOFTWARE THE PROGRAMS THAT CONSUMERS BUY BUT HOT NEW PRODUCTS FROM LOTUS INCLUDING ITS NOTES SOFTWARE FOR LINKING OFFICE WORK GROUPS TOGETHER ARE DEMONSTRATING THAT FRESH IDEAS IN USING COMPUTERS ARE AT LEAST AS IMPORTANT AS THE DESIGN OF THE SYSTEM THAT RUNS THEM WHILE MICROSOFT'S TORRID GROWTH RATE IS SLOWING LOTUS IS TAKING OFF ANALYSTS ARE BETTING THAT THE CAMBRIDGE MASS COMPANY WILL REPORT THAT ITS THIRDQUARTER PROFIT DOUBLED ON A STRONG SALES GAIN ITS FIRST IN MORE THAN A YEAR LOTUS STOCK FLIRTING WITH 50 IS UP 150 IN THE LAST 10 MONTHS LOTUS IS BACK IN THE BALLGAME SAYS RICHARD G SRLUND SOFTWARE ANALYST AT GOLDMAN SACHS & CO MICROSOFT'S GAINS ARE GOING TO BECOME FAR MORE DIFFICULT TO EXTRACT THAN THEY HAVE BEEN TO DATE TWO THINGS HAVE HELPED TIP THE SCALES FIRST LOTUS PIONEERED A NEW PRODUCT CATEGORY WORKGROUP SOFTWARE ALSO CALLED GROUPWARE IN WHICH IT ENJOYS A WIDE LEAD OVER ITS RIVALS INCLUDING MICROSOFT AT THE SAME TIME BECAUSE IT HAS SUCCESSFULLY DIVERSIFIED ITS PRODUCT LINE LOTUS IS NOW THE ONLY REAL CHALLENGER TO MICROSOFT IN SELLING BUNDLED SOFTWARE WHICH IS SUDDENLY THE HOTTEST SALES CHANNEL INDEED MICROSOFT SAYS IT NOW SELLS 50 OF ALL ITS APPLICATIONS SOFTWARE THROUGH ITS MICROSOFT OFFICE PRODUCT LOTUS'S SMARTSUITE SALES ARE SKYROCKETING AS WELL EACH OFFERS THE FLAGSHIP GRAPHICS SPREADSHEET AND WORDPROCESSING PROGRAMS PLUS EXTRAS BORLAND INTERNATIONAL INC AND WORDPERFECT CORP HAVE TEAMED UP AS WELL TO OFFER BORLAND OFFICE WHICH TRAILS IN THIRD PLACE THE MICROSOFT AND LOTUS SUITES ARE THE COKE AND PEPSI OF SOFTWARE SUGGESTS GOLDMAN'S MR SHERLUND BORLAND IS RC COLA ANALYSTS ALSO SAY THAT THE EMERGENCE OF SUITES AS A PRIMARY SALES CHANNEL WILL PUT PRESSURE ON SMALLER COMPANIES AND FORCE A NEW ROUND OF CONSOLIDATION IN THE SOFTWARE INDUSTRY MICROSOFT STILL HAS TREMENDOUS ADVANTAGES OVER LOTUS WITH ABOUT 4 BILLION IN ANNUAL SALES MUCH OF THAT FROM ITS WINDOWS AND DOS OPERATING SOFTWARE IT REMAINS NEARLY FOUR TIMES LOTUS'S SIZE AND IT IS EXPECTED TO RELEASE NEW VERSIONS OF PRODUCTS THIS FALL THAT COULD PUT NEW PRESSURE ON LOTUS IN SOFTWARE SUITES MICROSOFT HAS CAPTURED THE LION'S SHARE OF SALES SO FAR IT HAS BEEN ESPECIALLY SUCCESSFUL WITH DISCOUNTED SALES TO LARGE COMPANIES MAKING A MOVE TO WINDOWS BUYING NEW PERSONAL COMPUTERS WITH WINDOWS OFTEN REQUIRES ALLNEW HARDWARE AND SOFTWARE GENERAL ELECTRIC CO FOR EXAMPLE RECENTLY AGREED TO BUY 70000 COPIES OF OFFICE IN A THREEYEAR DEAL VALUED AT MORE THAN 10 MILLION FOR MICROSOFT UNTIL RECENTLY THEY'D BEEN KILLING US IN SUITES SAYS A LOTUS EXECUTIVE NOW THAT HAS CHANGED ANALYSTS SAY AS LOTUS HAS FIXED ITS FLAGSHIP 123 SPREADSHEET FOR WINDOWS AND BOUGHT APPROACH A COMPANY WITH A DATABASEMANAGEMENT PRODUCT PRODUCTS IN LOTUS'S SUITE HAVE WON TOP RANKINGS FROM INDEPENDENT SOFTWARE REVIEWERS A LOTUS SPOKESMAN SAYS THAT IN THE SECOND QUARTER 20 OF TOTAL DESKTOP APPLICATIONS SALES WERE IN SUITE SALES BUT SAYS THAT PERCENTAGE WILL BE UP SUBSTANTIALLY IN THE THIRD QUARTER MANY ANALYSTS EXPECT LOTUS TO POST NET OF 35 CENTS A SHARE COMPARED WITH 17 CENTS A SHARE IN OPERATING NET REPORTED BEFORE A STOCKSALE GAIN IN LAST YEAR'S THIRD QUARTER SALES ARE EXPECTED TO BE UP 18 TO ABOUT 244 MILLION YESTERDAY LOTUS CHAIRMAN AND CHIEF EXECUTIVE JIM P MANZI TOLD ANALYSTS THE COMPANY HAS TARGETED A REVENUE GROWTH RATE OF 15 TO 20 IN EACH OF THE NEXT SEVERAL YEARS AS NOTES AND CCMAIL LOTUS'S STRONGSELLING ELECTRONICMAIL PACKAGE BEGIN TO CONTRIBUTE MORE TO TOTAL SALES HE ALSO PREDICTED THAT MORE THAN 3000 COMPANIES WILL BE USING NOTES BY YEAR END UP FROM 1400 AT THE END OF 1992 NOTES WHICH WORKS WITH THE PLUMBING THAT HOLDS TOGETHER A NETWORK OF DESKTOP COMPUTERS MAKES IT EASIER FOR PEOPLE TO SHARE COMPLEX INFORMATION AND TO UPDATE LARGE NUMBERS OF COWORKERS QUICKLY COOPERS & LYBRAND AND PRICE WATERHOUSE FOR EXAMPLE CONNECT MOST PROFESSIONAL WORKERS WITH NOTES CHASE MANHATTAN AND GENERAL MOTORS EUROPE ARE WORKING WITH NOTES TO TRACK SALES LEADS PROJECTS AND COMPETITIVE INFORMATION DAVID READERMAN AN ANALYST AT LEHMAN BROS INC ESTIMATES THAT NOTES SALES WILL JUMP FROM 97 MILLION THIS YEAR TO 147 MILLION IN 1994 BUT HE CALLS NOTES A TROJAN HORSE THAT DRIVES ADDITIONAL SALES OF LOTUS PRODUCTS ONCE IT IS INSTALLED AT A COMPANY NOTES BECOMES THE ENVIRONMENT IN WHICH EVERYONE GETS THEIR WORK DONE MR MANZI YESTERDAY ALSO DISMISSED MICROSOFT'S EFFORTS TO ENTER THE WORKGROUP SOFTWARE MARKET CLAIMING ON THE ORDER OF A FIVEYEAR LEAD OVER HIS RIVALS BUT LOTUS IS ALREADY BEGINNING TO FACE COMPETITION WORDPERFECT HAS NEW OFFICEAUTOMATION SOFTWARE THAT WHILE NOT AS POWERFUL AS NOTES IS GAINING MOMENTUM IN THE MARKET BORLAND ORACLE CORP AND APPLE COMPUTER INC HAVE EACH ANNOUNCED PLANS TO GET INTO WORKGROUP SOFTWARE MICROSOFT THOUGH REMAINS THE BIGGEST LONGTERM THREAT MICROSOFT IS ADDING WORKGROUP FEATURES TO INDIVIDUAL PRODUCTS MAKING A SPREADSHEET FOR EXAMPLE EASIER TO SHARE WITH OTHERS ON A NETWORK BUT LATE NEXT YEAR THE COMPANY IS EXPECTED TO TAKE MANY OF THE BASIC FUNCTIONS OF NOTES ITSELF INTO A NEW RELEASE OF THE OPERATING SYSTEM CODENAMED CAIRO THESE FEATURES WILL BE GIVEN AWAY AS PART OF THE OPERATING SYSTEM BLUNTING LOTUS'S ADVANTAGE THEY'LL HAVE TO REINVENT THEMSELVES AND THEY KNOW IT SAYS MICROSOFT'S CHAIRMAN AND CHIEF EXECUTIVE WILLIAM H GATES NO ONE CAN DISPUTE THAT THESE THINGS BELONG IN THE OPERATING SYSTEM AS IT EVOLVES FAIR OR NOT IT'S THE NATURAL PROGRESSION OF TECHNOLOGY RAY OZZIE WHO DEVELOPED NOTES FOR LOTUS SAYS HE ISN'T WORRIED THEY DON'T GET IT HE SAYS IT'S NOT ENOUGH TO PUT A LITTLE BIT OF WORKGROUP FUNCTIONALITY INTO A SPREADSHEET OR TAKE A PIECE OF NOTES INTO THE OPERATING SYSTEM NOTES IS A TOOL TO SOLVE BUSINESS PROBLEMS ALL WE CAN DO HE ADDS IS STAY A STEP AHEAD OF THEM 9310130079 931013 S&P SETS CHANGES FOR 2 INDEXES NEW YORK STANDARD & POOR'S CORP SAID JWP INC A TECHNICALSERVICES COMPANY WILL BE REMOVED FROM ITS S&P 500STOCK INDEX AFTER THE CLOSE OF TRADING TODAY BECAUSE OF THE COMPANY'S FINANCIAL DIFFICULTIES PIONEER HIBRED INTERNATIONAL INC DES MOINES IOWA WILL REPLACE JWP IN THE INDEX CURRENTLY PIONEER IS IN THE S&P MIDCAP 400 INDEX CABLETRON SYSTEMS INC ROCHESTER NH WILL REPLACE PIONEER HIBRED IN THE S&P MIDCAP 400 S&P ALSO ANNOUNCED IT WOULD REMOVE A&W BRANDS INC WHITE PLAINS NY FROM ITS S&P MIDCAP 400 INDEX BECAUSE THE COMPANY IS BEING ACQUIRED BY CADBURY SCHWEPPES PLC S&P SAID FINGERHUT COS MINNETONKA MINN WILL REPLACE A&W IN THE INDEX 9310130078 931013 WHO'S NEWS XEROX REGROUPS A SECOND TIME SINCE FEBRUARY '92 BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL STAMFORD CONN XEROX CORP ANNOUNCED ANOTHER RESHUFFLING OF SEVERAL SENIOR POSITIONS SUGGESTING THAT A RESTRUCTURING IT HAD BEGUN IN FEBRUARY 1992 HASN'T COMPLETELY MET EXPECTED GOALS XEROX WHICH HAS BEEN TUSSLING WITH DISRUPTIONS FROM A RESTRUCTURING OF ITS SALES ORGANIZATION NAMED RICHARD S BARTON PRESIDENT OF US CUSTOMER OPERATIONS THE GROUP RESPONSIBLE FOR MARKETING THE COMPANY'S PRODUCTS DOMESTICALLY THE GROUP HAS 30000 EMPLOYEES OUT OF A TOTAL OF 48500 EMPLOYEES IN XEROX'S MAIN US DOCUMENT PROCESSING BUSINESS MR BARTON 44 YEARS OLD WAS PREVIOUSLY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF XEROX CANADA INC WHERE HE HELPED GENERATE A 55 JUMP IN PROFIT ON A 3 REVENUE INCREASE SINCE MAY 1991 PARTLY THROUGH PERSONNEL REDUCTIONS AND IMPROVING EMPLOYEE EFFICIENCY MR BARTON SUCCEEDS DAVID R MYERSCOUGH 52 WHO WAS NAMED TO THE POSITION OF SENIOR VICE PRESIDENT CORPORATE BUSINESS STRATEGY MR MYERSCOUGH HAD REALLY BEEN CHALLENGED BY DIFFICULTIES IN THE NATIONAL MARKET PLACE DUE TO THE ECONOMIC DOWNTURN THE SPOKESMAN SAID DIANE E MCGARRY 44 SUCCEEDS MR BARTON AS PRESIDENT OF XEROX CANADA MS MCGARRY WAS PREVIOUSLY DIRECTOR SALES OPERATIONS FOR THE UNITED KINGDOM AT RANK XEROX A JOINT VENTURE BETWEEN XEROX AND THE RANK ORGANISATION THAT MARKETS XEROX PRODUCTS IN EUROPE XEROX'S ATTEMPT TO REORGANIZE ITS SALES FORCE HAS TAKEN LONGER THAN EXPECTED ANALYSTS SAY UNDER ITS PLAN THE COMPANY CHANGED THE FOCUS OF ITS MARKETING TO TARGETING DECISION MAKERS AT COMPANIES FROM A PREVIOUS STRATEGY TO PITCH SALES ON THE BASIS OF PRODUCTS THE TRANSITION WASN'T SMOOTH SAID EUGENE GLAZER ANALYST AT DEAN WITTER REYNOLDS XEROX HAD ASSUMED THE ADJUSTMENT PROCESS WOULD HAPPEN SOONER PATRICK J MARTIN 52 PREVIOUSLY PRESIDENT AMERICAS CUSTOMER OPERATIONS WAS NAMED PRESIDENT OF THE OFFICE DOCUMENT PRODUCTS DIVISION THE LARGEST OF XEROX'S NINE BUSINESS DIVISIONS HE SUCCEEDS PATRICIA C BARRON 50 WHO WAS NAMED PRESIDENT OF THE ENGINEERING SYSTEMS DIVISION MS BARRON SUCCEEDS WILBUR I PITTMAN 57 WHO BECOMES VICE PRESIDENT ORGANIZATION TRANSITION CARLOS PASCUAL 48 PREVIOUSLY GENERAL MANAGER RANK XEROX FRANCE WILL TAKE OVER AS PRESIDENT AND GENERAL MANAGER OF AMERICAS CUSTOMER OPERATIONS WHICH MARKETS XEROX PRODUCTS IN 60 COUNTRIES IN SOUTH AND CENTRAL AMERICA INCLUDING MEXICO AND THE CARIBBEAN ALSO BRIAN E STERN 45 WHO HAD HEADED THE CORPORATE BUSINESS STRATEGY OFFICE WAS NAMED PRESIDENT OF THE PERSONAL DOCUMENT PRODUCTS DIVISION SUCCEEDING JAMES H LESKO 42 WHO WAS EARLIER NAMED A CORPORATE VICE PRESIDENT 9310130077 931013 GE NET ROSE 9 TO 121 BILLION IN 3RD QUARTER BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL ELECTRIC CO'S THIRDQUARTER PROFIT ROSE 9 TO A RECORD 121 BILLION BOOSTED BY SIGNIFICANT IMPROVEMENTS IN PROFIT MARGINS ACROSS ITS BUSINESSES THE FAIRFIELD CONN COMPANY'S PROFIT AMOUNTED TO 141 A SHARE IN THE YEARAGO QUARTER IT EARNED 111 BILLION OR 130 A SHARE REVENUE ROSE 4 TO 1486 BILLION FROM 1427 BILLION IN LAST YEAR'S THIRD QUARTER IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE GE'S STOCK CLOSED AT 95625 DOWN 875 CENTS GE'S 141ASHARE NET INCOME WAS EITHER ON THE DOT OR WITHIN A PENNY OF WALL STREET ANALYSTS' ESTIMATES SOME ANALYSTS ATTRIBUTED THE ACCURACY OF THEIR ESTIMATES TO THEIR BETTER COMMUNICATIONS WITH THE COMPANY GE SAID THAT IN LINE WITH ITS EXPECTATIONS ITS AIRCRAFTENGINE UNIT'S THIRDQUARTER OPERATING PROFIT WAS MUCH LOWER THAN A YEAR AGO THAT BUSINESS IS SUFFERING FROM A SHARP DECLINE IN DEFENSE SPENDING AND A SLUMP IN THE AIRLINES INDUSTRY OTHERWISE GE'S 11 OTHER BUSINESSES POSTED HIGHER PROFIT THAN A YEAR AGO GE SAID SEVEN OF THEM ACHIEVED DOUBLEDIGIT INCREASES IN PROFIT LED BY THE COMPANY'S APPLIANCES FINANCIAL SERVICES BROADCASTING AND POWER SYSTEMS OPERATIONS GE SAID THAT IF IT EXCLUDED FROM LAST YEAR'S THIRD QUARTER THE RESULTS OF ITS AEROSPACE BUSINESS WHICH IT SOLD TO MARTIN MARIETTA CORP EARLIER THIS YEAR THE COMPANY'S PROFIT IN THE LATEST PERIOD WOULD SHOW A 21 INCREASE FROM THE 1992 QUARTER RUSSELL LEAVITT AN ANALYST AT SALOMON BROTHERS FUND INC SAID THAT ALTHOUGH SOME GE BUSINESSES SUCH AS APPLIANCES AND POWER GENERATION POSTED INCREASED SALES A SIGNIFICANT PART OF GE'S IMPROVED PERFORMANCE OVERALL IS DUE TO INTERNAL EFFORTS TO INCREASE PRODUCTIVITY AND CUT COSTS GE HAS BEEN INTENSELY PURSUING FOR INSTANCE A PROGRAM ACROSS ALL ITS BUSINESSES TO SHORTEN THE TIME IT TAKES TO DELIVER A PRODUCT FROM THE TIME IT'S ORDERED SUCH CYCLETIME REDUCTIONS GE REPORTED WERE LARGELY RESPONSIBLE FOR REDUCING INVENTORIES BY 900 MILLION AT THE END OF THE THIRD QUARTER FROM A YEAR AGO IN THE FIRST NINE MONTHS GE EARNED 37 BILLION OR 433 A SHARE COMPARED WITH 338 BILLION OR 395 A SHARE A YEAR EARLIER REVENUE ROSE TO 4248 BILLION FROM 4087 BILLION THE NINEMONTH RESULTS EXCLUDE A FIRSTQUARTER ACCOUNTING CHANGE RELATED TO POSTEMPLOYMENT BENEFITS 9310130076 931013 CREDIT MARKETS BOEING QUICKLY SELLS SECOND 50YEAR BOND ISSUE AS COMPANIES LOCK IN LOW LONGTERM RATES BY THOMAS T VOGEL JR AND LESLIE SCISM STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WITH LONGTERM BOND YIELDS BELOW 6 IT WOULDN'T SEEM TO BE THE BEST TIME FOR INVESTORS TO LOCK IN A RATE FOR THE NEXT HALFCENTURY BUT IT'S GREAT FOR THE COMPANIES SELLING THESE BONDS SO FAR THIS YEAR SIX COMPANIES HAVE SOLD 50YEAR BONDS ACCORDING TO SECURITIES DATA CO WHILE TWO COMPANIES HAVE SOLD 100YEAR BONDS YESTERDAY ONE OF THESE COMPANIES BOEING CO THE AEROSPACE COMPANY CAME BACK FOR MORE BOEING SOLD 125 MILLION OF NONCALLABLE BONDS THAT DON'T MATURE UNTIL 2043 IN APRIL BOEING SOLD 175 MILLION OF 50YEAR BONDS INVESTORS SNAPPED UP THE NEWEST ISSUE IT WAS BASICALLY SPOKEN FOR IN 10 MINUTES SAID BARBARA KENWORTHY A PORTFOLIO MANAGER FOR THE DREYFUS CORP THE BOEING ISSUE WENT VERY QUICKLY WITH THE BENCHMARK 635 COUPON 30YEAR TREASURY BOND YIELDING 592 YESTERDAY UNCHANGED FROM FRIDAY THE YIELD ON THE BOEING ISSUE MIGHT SEEM PALTRY TO MANY OBSERVERS THE BOEING BONDS WERE PRICED AT 99788 WITH A COUPON OF 6875 TO YIELD 689 JUST 084 PERCENTAGE POINT ABOVE THE 7125 COUPON 30YEAR TREASURY BOND MANY ISSUERS NOW USE THIS OLDER TREASURY BOND AS A PRICING BENCHMARK BECAUSE OF THE RECENT VOLATILITY IN THE 625 COUPON 30YEAR BOND THE BOEING ISSUE IS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP DEMAND FOR SUCH LONGDATED SECURITIES HAS BEEN EXTREMELY STRONG THIS YEAR MONEY MANAGERS SAID WITH THE BIG DROPS IN INTEREST RATES OVER THE PAST YEAR MANY FUND MANAGERS HAVE SEEN THEIR HIGHESTYIELDING SECURITIES CALLED AWAY AS COMPANIES REFINANCED AT LOWER RATES AT THE SAME TIME FUND MANAGERS WITH BIG INVESTMENTS IN MORTGAGEBACKED SECURITIES ALSO HAVE BEEN HIT HARD SAID TIM MULLINS A BOND TRADER WITH CS FIRST BOSTON INC THE LEAD UNDERWRITER ON YESTERDAY'S BOEING OFFERING THAT'S BECAUSE THESE SECURITIES ARE CALLED AWAY VERY QUICKLY WHEN INTEREST RATES DROP AND HOMEOWNERS RUSH TO REFINANCE THE MORTGAGES THAT BACK THESE SECURITIES AS A RESULT FUND MANAGERS ARE LEFT WITH A GAPING HOLE IN THEIR PORTFOLIOS WHERE HIGHYIELDING SECURITIES ONCE WERE THIS YEAR FUND MANAGERS TENDED TO PLUG THIS HOLE WITH LONGERTERM SECURITIES TO BENEFIT FROM EXPECTED DROPS IN LONGTERM INTEREST RATES BUT AFTER THE 30YEAR TREASURY BOND YIELD DROPPED BELOW 590 IN EARLY SEPTEMBER MANY MONEY MANAGERS BEGAN TO WORRY THAT RATES WERE NEARING THEIR BOTTOM AND THEY BEGAN TO LOAD UP SHORTERTERM SECURITIES INSTEAD BUT IN THE WAKE OF THE RELEASE LAST FRIDAY OF SEPTEMBER'S EMPLOYMENT REPORT A LOT OF PEOPLE CONCLUDED THEY HAD GOTTEN TOO BEARISH ON INTEREST RATES SAID MS KENWORTHY OF DREYFUS THEY NOW WANT TO BUY LONGERTERM SECURITIES SHE SAID LIKE MS KENWORTHY MANY MONEY MANAGERS HAVE NO INTENTION OF HOLDING THESE VERYLONGTERM BONDS UNTIL MATURITY RATHER THEY ARE USING THE BONDS AS TEMPORARY PORTFOLIO FILLERS AND HOPING TO MAKE SOME EXTRA MONEY ON PRICE GAINS AS THE YIELDS DROP THE PRICE OF THE BOEING 50YEAR BONDS SOLD IN APRIL FOR EXAMPLE HAD RISEN MORE THAN 14 POINTS TO 11301 AS OF LATE YESTERDAY OR MORE THAN 140 FOR A BOND WITH 1000 FACE VALUE COUNTING A COUPON PAYMENT AN INVESTOR WOULD HAVE HAD A TOTAL RETURN OF NEARLY 22 ON THE BOND AS OF YESTERDAY AT THE SAME TIME THE YIELD OF THE OLD BOEING BONDS RELATIVE TO THE 7125 30YEAR TREASURY BOND HAS DROPPED SHARPLY AS THE YIELD GAP BETWEEN THE TWO ISSUES HAS NARROWED TO 086 PERCENTAGE POINT FROM 10 PERCENTAGE POINT OTHER 50YEAR BOND ISSUES HAVE DONE WELL BUT NOT ALL ARE AS ATTRACTIVE AS THE BOEING ISSUE MONEY MANAGERS SAID MS KENWORTHY CONSIDERS THE BOEING ISSUE TO BE THE MOST LIQUID OR EASIEST TO TRADE LIQUIDITY IS IMPORTANT BECAUSE WITHOUT IT A MONEY MANAGER LIKELY WOULD HAVE TO DISCOUNT THE PRICE OF A BOND IN ORDER TO SELL IT QUICKLY BUT NOT ALL MONEY MANAGERS WERE THRILLED ABOUT THE BOEING BONDS MICHAEL GRAY OF FIDELITY INVESTMENTS DOESN'T THINK THAT THE MARKET FOR SUCH VERYLONGTERM DEBT IS VERY LIQUID THERE ARE NOT AS MANY ISSUERS OF 50YEAR BONDS AS THERE ARE OF 30YEAR BONDS HE EXPLAINED IT'S UNCHARTED TERRITORY CONCERNS ABOUT LIQUIDITY ARE PARTICULARLY IMPORTANT WITH TWO INFLATION REPORTS DUE TO BE RELEASED THIS WEEK TOMORROW AND FRIDAY THE GOVERNMENT IS TO RELEASE THE PRODUCER PRICE INDEX AND THE CONSUMER PRICE INDEX FOR SEPTEMBER IF THE DATA SHOW A JUMP IN INFLATION LONGTERM SECURITIES WILL BE HIT THE HARDEST BECAUSE THEY ARE THE MOST VULNERABLE TO RISING INTEREST RATES INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS THAT HAVE A FIXED RATE OF RETURN MEANWHILE MARVEL HOLDINGS INC HASN'T GIVEN UP ON A 150 MILLION JUNK BOND OFFERING WHICH WAS PULLED LAST FRIDAY BECAUSE OF WEAK DEMAND YESTERDAY THE COMPANY REINTRODUCED THE OFFERING SYNDICATE OFFICIALS SAID THE OFFERING WHICH IS STILL IN THE FORM OF NONCALLABLE FIVEYEAR ZERO COUPON BONDS IS BEING MARKETED WITH A 12 TO 1225 YIELD SYNDICATE OFFICIALS SAID COMPARED WITH A PROSPECTIVE YIELD GOING AS HIGH AS 125 LAST WEEK A COMPANY OFFICIAL AT MACANDREWS & FORBES HOLDING CO CONFIRMED THAT MARVEL HOLDINGS HAD REVIVED ITS BOND OFFERING THE COMPANY WILL PROBABLY COMPLETE THE DEAL TODAY HE SAID THE BONDS WILL AGAIN BE OFFERED BY BEAR STEARNS & CO AND THE PROCEEDS ARE TO BE USED FOR GENERAL CORPORATE PURPOSES THE OFFICIAL SAID THE DEAL WAS REVIVED DUE TO A CREATIVE MARKETING JOB BY BEAR STEARNS HE SAID DECLINING FURTHER COMMENT RONALD PERELMAN IS THE CHAIRMAN OF MACANDREWS & FORBES WHICH OWNS 100 OF MARVEL HOLDINGS THE PRICES OF LONGTERM US TREASURYS RODE A ROLLER COASTER BUT ENDED LITTLE CHANGED BY DAY'S END THANKS TO RISING GOLD PRICES AT THE END OF TRADING YESTERDAY IN NEW YORK THE PRICE OF THE TREASURY'S 30YEAR BOND WAS UNCHANGED AT 104 16/32 TO YIELD 592 THE 10YEAR NOTE DROPPED LESS THAN 1/8 TO 103 20/32 TO YIELD 526 UP FROM 525 ON FRIDAY MOST US BOND MARKETS WERE CLOSED ON MONDAY IN OBSERVANCE OF THE COLUMBUS DAY HOLIDAY EARLY IN THE DAY THE 30YEAR BOND HAD RISEN MORE THAN 1/2 POINT AS RALLY THAT STARTED FRIDAY CONTINUED BY AFTERNOON DEALERS WERE CONCERNED BY RISING GOLD PRICES GOLD OFTEN IS WATCHED AS A GAUGE OF INFLATION THE BANE OF THE BOND MARKET AT ITS HIGH YESTERDAY THE GOLD FUTURES CONTRACT TRADED AT COMMODITY EXCHANGE INC HAD RISEN 830 AN OUNCE AT 370 IT SETTLED 750 HIGHER AT 36920 JOHN WYLIE PORTFOLIO MANAGER AT NICHOLASAPPLEGATE CAPITAL MANAGEMENT THE SAN DIEGOBASED ADVISER TO NICHOLASAPPLEGATE MUTUAL FUNDS SAID HE EXPECTS INTEREST RATES TO CONTINUE FALLING AFTER A SHORT BREAK WE'RE STILL IN AN OVERALL DISINFLATIONARY ENVIRONMENT WHERE WE WOULD EXPECT RATES TO BE IN AN OVERALL SECULAR DOWNTREND MR WYLIE EXPLAINED BUT IN THE NEARTERM WE THINK RATES MAY BE FLAT OR BACK UP A BIT 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 14 THE 13WEEK BILLS MATURE JAN 13 1994 AND THE 26WEEK BILLS MATURE APRIL 14 1994 MUNICIPAL BONDS REMAINED FIRM AFTER THEIR STRONG EARLY PERFORMANCE AND PRICES ENDED 1/8 TO 1/2 POINT ABOVE FRIDAY'S LEVELS AMONG ACTIVELY TRADED MUNIS CALIFORNIA'S 475 OF 2018 GENERAL OBLIGATION BONDS FINISHED AT 93 1/2 TO 93 5/8 UP 1/2 FROM FRIDAY'S CLOSE WITH A YIELD OF 521 A WARNING FROM MOODY'S INVESTORS SERVICE INC ABOUT THE CREDIT RATINGS OF CALIFORNIA COUNTIES DOESN'T SEEM TO BE NEGATIVELY AFFECTING THE STATE'S SECURITIES MOODY'S REPORT IS TITLED CALIFORNIA COUNTY CREDIT RATINGS IN JEOPARDY THE FIRM SAID IT IS REVIEWING THE DEBT OF ALL 41 CALIFORNIA COUNTIES THAT IT RATES IN CALIFORNIA 48 OF COUNTY GENERAL OBLIGATION AND LEASE ISSUES ARE RATED SINGLEA1 OR HIGHER COMPARED WITH 40 FOR ALL US COUNTIES MOODY'S SAID ONLY 5 OF CALIFORNIA COUNTY ISSUES ARE RATED BELOW BAA1 COMPARED WITH 11 FOR ALL US COUNTIES SEPARATELY MORE THAN 1 BILLION OF MUNI ISSUES MADE THEIR DEBUT THE LARGEST WAS THE SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT & POWER DISTRICT ARIZONA 1993 SERIES C ELECTRIC SYSTEM 7385 MILLION REFUNDING BONDS THE BONDS PRICED BY A BEAR STEARNS & CO GROUP HAVE YIELDS RANGING FROM 3 IN 1995 TO 529 IN 2016 MORTGAGE SECURITIES PRICES OPENED SLIGHTLY LOWER AND DETERIORATED THROUGH THE DAY DESPITE A REVERSAL OF SOLID EARLY TREASURY MARKET GAINS THAT FUELED PREPAYMENT CONCERNS IN CONTRAST 10YEAR TREASURY NOTES WERE UNCHANGED AFTER BEING UP AS MUCH AS ABOUT 3/8 POINT YESTERDAY MORNING ONE REASON GINNIE MAES MARGINALLY OUTPACED CONVENTIONAL MORTGAGE SECURITIES WAS THE DEMAND FROM DEALERS SEEKING COLLATERAL FOR NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS ABOUT 14 BILLION OF NEW REMICS WERE ANNOUNCED IN YESTERDAY'S SESSION THAT VOLUME INCLUDED A 500 MILLION FANNIE MAE OFFERING AND THE INCREASE OF AN OUTSTANDING FREDDIE MAC GOLD REMIC TO 541 MILLION FROM 200 MILLION BOTH OF THOSE ISSUES WERE BACKED BY GINNIE MAE 30YEAR 7 MORTGAGE SECURITIES JACQUELINE DOHERTY CONTRIBUTED TO THIS REPORT 9310130075 931013 ECONOMY NUMBER OF AFFLUENT HOUSEHOLDS TO JUMP AND SPENDING TO RISE STUDY INDICATES BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL THE NUMBER OF HOUSEHOLDS CONSIDERED AFFLUENT WILL JUMP DURING THE CURRENT DECADE MAINLY BECAUSE OF WORKING WIVES A CONFERENCE BOARD STUDY SHOWS HOUSEHOLDS EARNING 100000 OR MORE A YEAR WILL DOUBLE BY THE YEAR 2000 TO 43 MILLION THERE ALSO WILL BE AN EXPLOSIVE RISE IN HOUSEHOLDS EARNING 50000 OR MORE A YEAR SAID FABIAN LINDEN EXECUTIVE DIRECTOR OF THE BOARD'S CONSUMER RESEARCH CENTER HOUSEHOLDS EARNING AT THE 50000 LEVEL AND ABOVE WHERE BOTH SPOUSES ARE WORKING WILL INCREASE ABOUT 50 TO ALMOST 20 MILLION BY THE YEAR 2000 FROM 135 MILLION IN 1990 THE STUDY PROJECTS THE BOOST THAT COULD GIVE TO HOUSEHOLD SPENDING IN FUTURE YEARS WOULD BE THE NEXT STAGE OF HOW WOMEN IN THE WORK FORCE ARE CHANGING THE ECONOMY SAID MR LINDEN IN THE RECENT PAST MOST OF THE GROWTH IN THE NATION'S HOUSEHOLD POPULATION WAS IN SINGLEPERSON HOUSEHOLDS HE NOTED DURING THE PRESENT DECADE THE BALANCE WILL SHIFT AS MORE THAN THREEFIFTHS OF THE INCREASES IN HOUSEHOLDS COMES FROM HUSBANDWIFE UNITS THE 21PAGE STUDY ENTITLED MULTIPAYCHECK FAMILIES SAID NOT ONLY WOULD THE PERCENTAGE OF WORKINGWIFE HOUSEHOLDS INCREASE BUT THAT THE INCREASES WILL BE MOST PROMINENT IN PEAK EARNINGS AGE BRACKETS THAT IS BECAUSE MORE WOMEN NOW MARRY LATER IN LIFE HAVE FEWER CHILDREN AND ARE MORE LIKELY TO RETURN TO WORK WHEN CHILDREN ENTER SCHOOL MR LINDEN SAID THE BABY BOOM GENERATION WHERE WOMEN ARE BETTER EDUCATED WORKING AT MORE PROFESSIONAL JOBS IS MOVING INTO THE MATURE YEARS OF INCOME GENERATION HE ADDED MORE THAN 78 OF HUSBANDWIFE HOUSEHOLDS WHERE THE HEAD IS AGED 4555 WILL HAVE BOTH HUSBAND AND WIFE WORKING SEVEN YEARS FROM NOW UP FROM A LITTLE MORE THAN 70 IN 1990 THE STUDY PREDICTS THE RISE WILL BE FELT MOST IN THE 100000 1990 DOLLARS AND OVER HOUSEHOLD INCOME BRACKET WHERE ALMOST 80 OF WIVES WILL BE WORKING UP FROM 704 IN 1990 ALTOGETHER THE STUDY ESTIMATED 371 MILLION HOUSEHOLDS 64 OF THE HUSBANDWIFE HOUSEHOLD TOTAL WITH HUSBAND AND WIFE WORKING IN 2000 UP FROM 308 MILLION 59 OF TOTAL THREE YEARS AGO THE BOARD ESTIMATED THE 16 TRILLION IN INCOME EARNED BY HUSANDS AND WIVES IN 1990 WILL MUSHROOM TO 22 TRILLION BY 2000 THE INCOME PROJECTIONS ASSUME AN AVERAGE 25 ANNUAL ECONOMIC GROWTH RATE ABOVE INFLATION FOR THE DECADE THE IMPACT OF THE TRENDS WILL BE A RAPID EXPANSION IN CONSUMER SPENDINGPARTICULARLY FOR TOPOFTHELINE MERCHANDISE SAID MR LINDEN IN FACT HE ADDED THE DEMOGRAPHICS SUGGEST THAT ONCE WE ARE OVER THE MOMENTARY ECONOMIC PROBLEMS WE CAN HAVE A THRIVING ECONOMY IRWIN KELLNER CHIEF ECONOMIST WITH CHEMICAL BANKING CORP AND A SPECIALIST IN CONSUMER TRENDS ADDS IT BODES WELL FOR THE FUTURE IN TERMS OF MORE SPENDING POWER THAN WOULD OTHERWISE BE THE CASE MOREOVER THE RISE OF WIVES IN THE WORK FORCE HELPS TO OFFSET SOME OF THE CORPORATE DOWNSIZING AFFECTING MALES IT MEANS UNEMPLOYMENT RATES ARE NOT AS SERIOUS AS THEY WERE 30 YEARS AGO BECAUSE SOMEONE ELSE IN THE FAMILY MAY BE WORKING SAYS MR KELLNER THE BOARD'S STUDY ALSO DOCUMENTS THE TRENDS ALREADY ESTABLISHED BY THE INCREASE OF WOMEN IN THE WORK FORCE IN 1970 FOR INSTANCE ABOUT HALF OF ALL WOMEN OF WORKING AGE WERE EARNING A PAYCHECK TODAY THE FIGURE EXCEEDS TWOTHIRDS THE BOARD DIDN'T PROJECT THE AVERAGE EARNINGS OF WOMEN COMPARED WITH MEN BUT DID SHOW THAT THE DIFFERENCE HAS BEEN NARROWING IN 1980 THE MEDIAN INCOME OF FEMALES IN 1990 DOLLARS WAS 18683 COMPARED WITH 31315 FOR MEN BY 1990 MEN'S MEDIAN INCOME HAD DROPPED TO 30129 BUT FOR WOMEN HAD RISEN TO 20616 VARIOUS SECTORS OF THE ECONOMY WILL BENEFIT FROM THE RISE IN AFFLUENT WORKING WIFE HOUSEHOLDS MR KELLNER NOTED HE EXPECTS THERE WILL BE INCREASES IN TRAVEL PURCHASES OF SECOND HOMES HIGHERPRICED AUTOMOBILES AND USE OF RESTAURANTS AND CHILDCARE SERVICES THE TRENDS SUGGESTED BY THE BOARD'S REPORT ALSO MEAN THAT THE PRESENT FOCUS ON THE PHYSICAL MARKETPLACE WILL CHANGE TO A NEW PARADIGM WHERE CONSUMERS PURCHASE GOODS IN AN ELECTRONIC MARKETPLACE FOR CONVENIENCE SAID PETER MOORE MANAGING PARTNER OF INFERENTIAL FOCUS A NEW YORK MARKET CONSULTING FIRM HE ALSO SUGGESTED THAT MORE PEOPLE WILL BE WILLING TO PAY UP FOR SERVICES AND GOODS THAT MAKE LIFE EASIER CHALLENGING THE CONVENTIONAL WISDOM THAT PRICE COMPETITION IS BECOMING ENTRENCHED THROUGHOUT THE ECONOMY NOT SO FAST IS BARBARA FEIGIN'S RESPONSE TO PREDICTIONS OF MORE CAREFREE SPENDING GREY ADVERTISING INC WHERE SHE IS EXECUTIVE VICE PRESIDENT HAS JUST COMPLETED A STUDY OF CONSUMERS THAT SHOWS IRRESPECTIVE OF WHETHER THEY HAVE MONEY THEY ARE MORE FOCUSED ON BUDGETING PARING EXPENSES AND REDUCING DEBT THEIR LEVEL OF OPTIMISM IS DECLINING BECAUSE THEY SEE THEIR FRIENDS AND NEIGHBORS OUT OF JOBS THEY WORRY ABOUT TAKING CARE OF THEIR PARENTS AND WHETHER THEIR CHILDREN WILL HAVE JOBS WAITING FOR THEM WHEN THEY GROW UP SHE ADDED WHILE SUCH PEOPLE MAY BE WILLING TO PURCHASE LUXURY GOODS IT WILL NOT BE IN ABUNDANCE INSTEAD AN ERA OF PRECISION SHOPPING IS EMERGING MS FEIGIN SAID 9310130074 931013 WHO'S NEWS CHERRY CORP CHERRY CORP WAUKEGAN ILL CHARLES W DENNY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SCHNEIDER NORTH AMERICA AND PRESIDENT AND CHIEF OPERATING OFFICER OF SQUARE D CO WAS ELECTED A DIRECTOR OF THIS MAKER OF ELECTRICAL SWITCHES ELECTRONIC KEYBOARDS AND DISPLAYS AND SEMICONDUCTORS INCREASING BOARD MEMBERSHIP TO SEVEN 9310130073 931013 HEARD ON THE STREET MEXICO STOCK STRATEGISTS PREPARE FOR ALL POSSIBLE OUTCOMES ON NAFTA BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY FROM THE NOISY CAFES OF THIS CITY'S ZONA ROSA DISTRICT TO THE HUSHED HALLS OF NEW YORK'S PARK AVENUE STOCK PICKERS ARE PLACING THEIR BETS ON HOW FREE TRADE MIGHT SWING THE MEXICAN STOCK MARKET IT IS A HORRIBLE WAY TO MANAGE MONEY SAYS PABLO MANCERA WHO OVERSEES SOME 700 MILLION IN INVESTMENTS HERE AS TREASURER FOR BANCO SANTANDER HE ALSO MANAGES EMERGING MEXICO FUND TRADED ON THE NEW YORK STOCK EXCHANGE TODAY THE MEXICAN MARKET IS LIKE FLIPPING A COIN HERE'S THE TOSS NAFTA SI THE MEXICAN STOCK MARKET SOARS 450 POINTS OR ALMOST 24 AND LAUNCHES INTO A POWERFUL LONGTERM BULL PHASE MR MANCERA FIGURES A DELAYED VOTE ON THE NORTH AMERICAN FREE TRADE AGREEMENT IS ALREADY PRICED INTO THE MARKET HE SAYS NAFTA NO THE MARKET TAKES A 250POINT HIT FALLING 13 BUT MR MANCERA QUICKLY ADDS IT WILL BE A BEAUTIFUL BUYING OPPORTUNITY THAT'S RIGHT THERE'S MUCH MORE TO THE NAFTA SINAFTA NO PLAY IN MEXICAN STOCKS THAN WINNING OR LOSING ON A BURST OF VOLATILITY NAFTA'S FAILURE WON'T SHRINK THE PROFITS OF ALL MEXICAN COMPANIES MOREOVER NAFTA'S APPROVAL BY THE US CONGRESS COULD WREAK HAVOC ON SOME MEXICAN COMPANIES THAT CAN'T COMPETE FOR THE PAST WEEK ON THE BOLSA MEXICANA DE VALORES SHARES OF COMPANIES THAT COULD INCREASE PROFITS WITH OR WITHOUT THE TRADE ACCORD HAVE PERFORMED STRONGLY SHARES OF CEMENT COMPANIES APASCO AND CEMENTOS MEXICANOS ARE UP ABOUT 8 AND 4 RESPECTIVELY IN THE PAST FIVE SESSIONS USLISTED BOTTLER COCACOLA FEMSA HAS SURGED MORE THAN 17 TELEVISA IS UP ABOUT 9 NEVER WAS STOCK SELECTION SO IMPORTANT IN MEXICO AS IT IS NOW FOLLOWING ARE THREE STRATEGIES GARNERED FROM INVESTORS AND STRATEGISTS HERE TO PLAY THE VARIOUS POSSIBLE OUTCOMES OF NAFTA MR MANCERA SAYS THERE'S A GOOD CHANCE NAFTA CAN PASS BECOMING THE DRIVING FORCE THAT PUSHES THE MODERNIZATION PROGRAM OF PRESIDENT CARLOS SALINAS DE GORTARI INTO PHASE 2 BANKS AIRLINES STEEL MILLS AND FARMS ALREADY HAVE BEEN SOLD TO THE PRIVATE SECTOR BUT AFTER YEARS OF STATE OWNERSHIP MANY OF THESE BUSINESSES ARE DECREPIT AND INEFFICIENT FOR SOME CERTAINLY NOT ALL NAFTA WILL BRING AN INCENTIVE TO COMPETE AND CAPITAL TO MAKE NEW INVESTMENTS POSITIONING HIMSELF FOR A YES VOTE ON NAFTA MR MANCERA THE FUND MANAGER SAYS INVESTORS SHOULD BUY TOPQUALITY COMPANIES THAT WILL ATTRACT INTERNATIONAL PARTNERS THAT HAVE MODERN TECHNOLOGY AND ACCESS TO CHEAP CREDIT IT MAY TAKE MONTHS FOR USMEXICAN BUSINESS DEALS TO UNFOLD HERE AFTER NAFTA'S APPROVAL BUT ONE IMMEDIATE BENEFICIARY WILL BE MEXICAN CONSUMER SENTIMENT THAT'S WHY MR MANCERA RECOMMENDS A HEAVY EXPOSURE TO RETAILERS GRUPO INDUSTRIAL BIMBO IS ONE FAVORITE BESIDES A STRATEGIC ALLIANCE WITH SARA LTION SYSTEM AND UNDER NAFTA DISTRIBUTION IS GOING TO BE A VERY VALUABLE THING SAYS MR MANCERA HE EXPECTS OTHER US COMPANIES TO SEEK OUT BIMBO'S DISTRIBUTION KNOWHOW GRUPO CARSO IS ANOTHER PICK WITH ITS INTERESTS IN TOBACCO RETAILING THROUGH ITS SANBORNS FRANCHISE AND COMMUNICATIONS CARSO IS CONTROLLED BY MEXICAN MULTIBILLIONAIRE CARLOS SLIM HELU HE IS THE KIND OF GUY THAT WILL ATTRACT INTERNATIONAL BUSINESS PARTNERS MR MANCERA SAYS THEY HAVE A TERRIFIC MANAGEMENT STYLE AND ACCESS TO CHEAP FINANCING OTHER FAVORED RETAILERS INCLUDE CIFRA WHICH HAS A JOINT VENTURE WITH WALMART STORES AND IS ADOPTING THE US GIANT'S DISCOUNTING STRATEGY BUT FOR ABOUT HALF OF CIFRA'S MULTIPLE INVESTORS CAN PICK UP SEARS ROEBUCK DE MEXICO MR MANCERA SAYS HE SAYS SEARS HAS INCREASED CREDITCARD ISSUANCE WITH THE TOTAL IN JUNE UP 35 FROM THE YEAR BEFORE ONLY 3 OF ALL CARD DEBTS ARE IN ARREARS WHICH IS BETTER THAN THE 7 AVERAGE FOR THE MEXICAN BANKING SYSTEM SEARS DE MEXICO IS A 75OWNED SUBSIDIARY OF US RETAILER SEARS ROEBUCK ANOTHER CONSUMER PLAY IS KIMBERLYCLARK DE MEXICO 43OWNED BY KIMBERLYCLARK OF THE US MR MANCERA THINKS THE COMPANY'S DIAPER SALES WILL SHOW LARGE GAINS AS MEXICAN INCOMES RISE HE LIKES GRUPO INDUSTRIAL MASECA THE BIGGEST PLAYER IN MEXICO'S 4 BILLION TORTILLA MARKET MASECA'S MODERN PRODUCTION FACILITIES SHOULD ALLOW IT TO EXPAND MARKET SHARE THEY ARE GOING TO PUT THE SMALL MOLINOS MILLS COMPLETELY OUT OF BUSINESS HE SAYS THE GOVERNMENT REALIZES THAT LETTING THE INFRASTRUCTURE DETERIORATE WAS THEIR BIGGEST LOSS OF THE LAST 10 YEARS HE SAYS MEXICO'S CREDIT RATING COULD RISE UNDER NAFTA MAKING LONGTERM PROJECT FINANCING MORE AVAILABLE MR MANCERA LIKES CONSTRUCTION GIANT ICA CEMEX AND APASCO SECTORS THAT WILL FACE THE HARSH FORCE OF COMPETITION WITH NAFTA WILL BE STEEL TEXTILES AGRICULTURE AND BANKING MR MANCERA SAYS HE WOULD AVOID SHARES OF TUBOS DE ACERO DE MEXICO HE SAYS SECONDTIER FINANCIAL COMPANIES WILL HAVE A ROUGH TIME IF THEY DON'T DEVELOP A TERRITORIAL STRATEGY AND BUSINESS LINE HE'S NOT YET READY TO DIVE INTO GRUPO FINANCIERO PROBURSA AND ABACO GRUPO FINANCIERO HOWEVER HE LIKES THE DEVELOPING STRATEGIES OF GRUPO FINANCIERO SERFIN AND GRUPO FINANCIERO INVERLAT ALL AROUND MEXICO THERE ARE SUBTLE SIGNS OF WHAT THE MEXICAN GOVERNMENT PLANS TO DO IF NAFTA COLLAPSES PRESIDENT CARLOS SALINAS DE GORTARI RECENTLY MADE A STOP IN THE GIGANTIC EUROPEAN PORT OF ROTTERDAM IN THE NETHERLANDS THE KOREAN DEVELOPMENT BANK OPENED ITS FIRST LATIN AMERICAN OFFICE IN MEXICO CITY THE LOCAL MEDIA REPORT IF THE US BALKS THEN PERHAPS EUROPE AND ASIA WILL COME IN THE MEXICAN MODEL ONLY WORKS WITH FOREIGN SAVINGS SAYS SERGIO SANCHEZ GARCIA HEAD OF RESEARCH AT THE MEXICAN BROKERAGE FIRM INVERLAT IF WE DON'T ATTRACT FOREIGN SAVINGS THROUGH NAFTA WE WILL HAVE TO DO IT ANOTHER WAY IF NAFTA IS VOTED DOWN HE SAYS THE GOVERNMENT WILL BE FORCED TO LIBERALIZE THE ECONOMY TO AN EVEN GREATER DEGREE THEY WILL MOVE AS FAST AS POSSIBLE HE SAYS ONE AREA OF RAPID LIBERALIZATION WILL BE THE FINANCIAL SECTOR HE BELIEVES MANY BANKS COULD HAVE DIFFICULTY COMPETING I WOULD BE EXTREMELY SELECTIVE IN THIS SECTOR HE SAYS THE BANK STOCKS ARE GOING TO BE A TWOWAY STORY THOUGH THERE WILL BE SOME VERY GOOD OPPORTUNITIES NAFTA'S FAILURE WOULD ALSO RESULT IN A PESO MARKET DEVALUATION OF ABOUT 4 TO 6 WITHIN THE CURRENT BAND ESTABLISHED BY BANCO DE MEXICO HE PREDICTS AS A HEDGE MR SANCHEZ SUGGESTS INVESTORS TEMPTED BY MEXICO BUY EXPORTERORIENTED COMPANIES THAT EARN REVENUE IN DOLLARS SUCH AS GLASS MAKER VITRO SILVER PRODUCER INDUSTRIAS PENOLES AND COPPER PRODUCER GRUPO INDUSTRIAL MINERA MEXICO THE COMPANIES ARE ALSO A PLAY ON STRONGER EXTERNAL DEMAND FOR MEXICAN PRODUCTS WITH A RECOVERY IN THE US ECONOMY TRUCK ASSEMBLER GRUPO DINA AND GRUPO DESC WHICH HAS AN AUTO PARTS BUSINESS COULD ALSO SEE STRONG EXPORT DEMAND HE SUGGESTS AS WELL AS POSSIBLE ALLIANCES WITH ASIAN PARTNERS FINALLY WITH OR WITHOUT NAFTA INFRASTRUCTURE SPENDING WILL HAVE TO CONTINUE HE SAYS HE WOULD PURCHASE SHARES OF CEMEX AND APASCO SOME PEOPLE ARE LOOKING FOR STOCKS THAT CAN BE WINNERS NO MATTER WHAT HAPPENS TO NAFTA MOISES TIKTIN NICKIN HEAD OF THE BROKERAGE FIRM VALORES FINAMEX SUGGESTS THAT INVESTORS BUY FRANCHISE COMPANIES IN MEXICO THAT ARE LIKELY TO DO WELL WITH OR WITHOUT THE TRADE AGREEMENT WE LIKE THE BOTTLERS HE SAYS SUCH AS COCACOLA BOTTLER SISTEMA ARGOS AND PEPSICOLA BOTTLERS EMBOTELLADORES DEL VALLE DE ANAHUAC OR EMVASSA AND GRUPO EMBOTELLADOR DE MEXICO OR GEMEX ALTHOUGH TELEVISA IS FACING A BIT OF COMPETITION LOCALLY MR TIKTIN THINKS THE MEXICAN MEDIA GIANT WILL CONTINUE TO BUILD PROGRAMMING ALLIANCES AND EXPAND MARKET SHARE IF THE GOVERNMENT BEGINS TO SPEND MORE OF ITS BUDGET SURPLUS ON SOCIAL PROGRAMS CEMENT COMPANIES ARE BOUND TO BENEFIT HE SAYS HE WOULD SUGGEST POSITIONS IN CEMEX TOLMEX AND APASCO THE STAKES ARE RISING FOR INVESTORS WHILE A DELAY OF THE TRADE ACCORD'S APPROVAL HAS SEEMED PLAUSIBLE TO US INVESTORS PRESIDENT SALINAS LAST WEEK REJECTED THAT POSSIBILITY TELLING THE FOREIGN NEWS MEDIA THAT THE TRADE ACCORD MUST WIN US CONGRESSIONAL APPROVAL BY JAN 1 HEARD ONE REASON MANY INVESTORS REMAIN BULLISH ON THE MEXICAN MARKET IS ITS CHEAP VALUATION RELATIVE TO THE US MARKET ACCORDING TO BEAR STEARNS THE BOLSA IS TRADING AT ABOUT 123 TIMES ESTIMATED 1993 PROFITS OF COURSE ONE REASON FOR THAT DISCOUNT IS FOREIGNCURRENCY RISK EVEN A MODEST 4 TO 6 DECLINE IN THE MEXICAN PESO WOULD HURT US INVESTORS WHO WHEN SELLING MEXICAN SHARES WOULD TRADE THEIR PESOS IN FOR FEWER DOLLARS 9310130072 931013 MAPPING THE MIND INNER MUSIC IMAGINATION MAY PLAY ROLE IN HOW THE BRAIN LEARNS MUSCLE CONTROL PRACTICING THE PIANO MENTALLY MAY ACCELERATE LEARNING MOTION STUDIES SUGGEST SPARKING THE WILL TO MOVE' BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO WHEN STEPHEN LISBERGER WATCHES AN OUTFIELDER LEAP UP AND SNAG A FLY BALL HE ADMIRES THE BALLETLIKE PERFORMANCE AND PONDERS IT THE MOMENT THE BALL IS HIT THE OUTFIELDER'S BRAIN BEGINS TO RECEIVE VISUAL INPUTS THE NEUROSCIENTIST EXPLAINS AS THE EYES TRACK THE BALL THE BRAIN BEGINS COMPUTING ITS TRAJECTORY WITHIN MILLISECONDS MILLIONS OF INSTRUCTIONS ARE FLASHED TO HUNDREDS OF MUSCLES TELLING EACH THE EXACT DEGREE OF TENSION OR RELAXATION REQUIRED TO START THE BODY TOWARD THE SPOT WHERE THE BALL WILL DESCEND A FLOOD OF SIGNALS FEED BACK TO THE BRAIN INDICATING WHETHER EACH MUSCLE IS RESPONDING CORRECTLY FINALLY IN A FLURRY OF RAPIDFIRE CALCULATIONS THAT WOULD OUTSTRIP THE MOST POWERFUL COMPUTER THE BRAIN ORDERS THE MUSCLES TO PROPEL THE BODY UPWARD AND EXTEND THE ARM THE GLOVED HAND AND THE BASEBALL ARRIVE AT EXACTLY THE SAME POINT IN SPACE AND TIME WHAT FASCINATES DR LISBERGER IS THAT CATCHING A FLY BALL IS NOT AN INBORN TALENT LIKE CRAWLING AND WALKING IT IS A MOTOR SKILL THAT MUST BE LEARNED AND IMPROVES WITH PRACTICE DISCOVERING HOW THE BRAIN INITIATES CONTROLS AND LEARNS MOVEMENTS OF THE MUSCLES WILL TEACH US ABOUT MANY OTHER KINDS OF MOVEMENT SAYS DR LISBERGER WHO IS BEGINNING TO UNRAVEL THE SECRETS IN HIS LABORATORY AT THE UNIVERSITY OF CALIFORNIA SAN FRANCISCO SCORES OF SCIENTISTS WHO ARE PROBING THE BRAIN EXPECT SUCH KNOWLEDGE TO LEAD TO NEW WAYS OF ENHANCING MOTOR SKILLS BE IT PLUCKING A BANJO OR PERFORMING MICROSURGERY SOME EXPERIMENTS ALREADY SUGGEST THAT MENTALLY PLAYING THE PIANO OR SKIING OR PLAYING TENNIS CAN SPEED THE LEARNING PROCESS THE EXPERIMENTS ALSO SHOW THAT THE BRAIN ONCE THOUGHT TO OPERATE AS RIGIDLY AS A HARDWIRED COMPUTER IS HIGHLY FLEXIBLE RESPONSIVE AND PROGRAMMABLE BOTH SHAPING MOVEMENT AND BEING SHAPED BY IT SUCH DISCOVERIES ARE SPAWNING NEW WAYS OF OVERCOMING THE PARALYZING DAMAGE OF STROKES AND OTHER BRAIN INJURIES UNLIKE THE INVISIBLE STIRRINGS OF MEMORY OR REASON MOVEMENT IS A DYNAMIC DISPLAY OF THE BRAIN AT WORK EVERY MOVE BEGINS WITH THE FIRING OF A NERVE CELL IN THE BRAIN BUT NEUROLOGISTS HAVE LONG DEBATED WHICH CELLS EMIT THE FIRST SPARK IGNITING THE WILL TO MOVE MANY BELIEVE THESE CUES COME FROM THE MOTOR CORTEX TWIN STRIPS OF BRAIN THAT CROWN EACH HEMISPHERE ONE DEMONSTRATION OF HOW THAT MAY WORK COMES FROM THE LAB OF APOSTOULOS GEORGOPOULOS AT THE UNIVERSITY OF MINNESOTA AND THE MINNEAPOLIS VETERAN'S ADMINISTRATION MEDICAL CENTER WHILE MONITORING MONKEYS PUSHING A LEVER AGAINST RESISTANCE DR GEORGOPOULOS HAS FOUND THAT THE ANIMALS' BRAINS SEND A SPATIAL PLAN OF ACTION FROM THEIR MOTOR CORTEX TO THEIR MUSCLES SEPARATELY HIS RESEARCH SHOWS THEIR LOWER BRAINS AND SPINAL CORDS ANALYZE THE AMOUNT OF THE RESISTANCE AND CALCULATE JUST ENOUGH COUNTERFORCE TO COMPLETE THE TASK TO UNDERSTAND HOW THIS WORKS IMAGINE REACHING FOR THAT FIRST CUP OF MORNING COFFEE IT SEEMS SO AUTOMATIC REQUIRING LITTLE INPUT FROM A GROGGY AND CAFFEINESTARVED BRAIN NOT SO SAYS DR GEORGOPOULOS THE MOTOR CORTEX SHOWS THE WAY FROM YOUR COFFEE CUP TO YOUR MOUTH IT FORMULATES A PLAN OF ACTION HE SAYS THE BRAIN STEM AND SPINAL CORD COMPUTE ENOUGH MUSCLE FORCE TO RESIST GRAVITY'S DOWNWARD DRAG ON THE FULL CUP THUS THE COFFEE REACHES YOUR LIPS INSTEAD OF TUMBLING TO YOUR LAP IN A SCALDING WAVE YOU CAN TAKE A CUP OF COFFEE OR YOU CAN TAKE A CUP OF LEAD AND THE BRAIN STEM WILL EFFECTIVELY CALCULATE SAYS DR GEORGOPOULOS THIS INSTANT PROBLEMSOLVING BY A HEALTHY BRAIN IS TAKEN FOR GRANTED BUT A STROKE OR TUMOR IN THIS AREA OF THE BRAIN UPSETS COORDINATION AND BALANCE GROSSLY DISTORTING MOVEMENT CONTROL INKLINGS OF HOW THE BRAIN LEARNS TO COORDINATE MOVEMENTS TO PULL OFF SUCH MANEUVERS AS CATCHING A FLY BALL ARE COMING FROM DR LISBERGER'S EXPERIMENTS WITH MONKEYS SINCE RESEARCHERS CAN'T TEACH MONKEYS TO CATCH FLY BALLS SAYS DR LISBERGER THEY DEVISED AN INGENIOUS SUBSTITUTE THE MONKEYS ARE FITTED WITH EYE GLASSES THAT CHANGE THEIR VIEW OF THE WORLD MAGNIFYING IT OR SHRINKING IT WITH THE VISUAL WORLD LOOMING LARGER OR SMALLER THAN IT WAS WITHOUT THE SPECTACLES THE BRAIN MUST RELEARN THE MUSCLE MOVEMENTS NEEDED TO KEEP THE EYES ON TARGET ONCE LEARNED OF COURSE THESE MOVEMENTS BECOME A REFLEX ACCOMPLISHED WITHOUT ANY CONSCIOUS THOUGHT TO FIND OUT WHERE THIS LEARNING PROCESS TAKES PLACE THE RESEARCHERS LAID WIRETAPS SO WE COULD LISTEN IN ON WHAT INDIVIDUAL CELLS WERE SAYING DR LISBERGER SAYS WHEN A MONKEY FIRST PUT ON THE MAGNIFYING EYEGLASSES A SINGLE NERVE CELL CALLED THE FTN CELL FOR FLOCULUS TARGET NEURON WOULD FIRE AT A SLOWLY INCREASING RATE AS THE MONKEY TURNED ITS HEAD AROUND TRYING TO LOOK AT A MOVING TARGET BUT AS THE MONKEY'S BRAIN LEARNED THE NEW PATTERN OF EYEMUSCLE MOVEMENTS THAT KEPT ITS EYES FIXED ON A TARGET IN THE MAGNIFIED WORLD THE FTN BEGAN FIRING AT AN INCREASINGLY RAPID RATE TO THE RESEARCHERS THE RISING FIRING RATE WAS EVIDENCE THAT THE FTN IS WHERE THE BRAIN LEARNS THE REFLEX MOVEMENT THAT KEEPS THE EYES FIXED ON A MOVING TARGET WE'VE ASKED THE QUESTION OF WHERE THE LEARNING OCCURS AND WE'VE COME UP WITH AN ANSWER DR LISBERGER SAYS NOW WE'RE ASKING HOW THE LEARNING OCCURS HIS TEAM IS TRYING TO TRACK DOWN NETWORKS OF NEURONS SCATTERED AROUND THE BRAIN THAT ARE FEEDING SIGNALS TO THE FTN CELL THAT ENABLE IT TO LEARN THE NEW REFLEXES FROM SUCH RESEARCH SHOULD COME NEW INSIGHTS AND PERHAPS NEW WAYS TO HELP THE BRAIN RELEARN VITAL MOVEMENTS AFTER IT HAS BEEN DAMAGED BY STROKES OR ACCIDENTS THE BETTER WE UNDERSTAND HOW LEARNING OCCURS THE BETTER WE CAN DESIGN INTERVENTIONS TO ASSIST LEARNING WITHOUT AFFECTING OTHER THINGS DR LISBERGER SAYS WHEN CHALLENGED BY TRAUMA OR ILLNESS THE BRAIN RESPONDS WITH ASTONISHING SPEED ACCORDING TO A RECENT STUDY BY MARK HALLETT AND HIS TEAM AT THE NATIONAL INSTITUTE OF NEUROLOGICAL DISORDERS AND STROKE A UNIT OF THE NATIONAL INSTITUTES OF HEALTH USING HUMAN VOLUNTEERS HE SIMULATED AMPUTATION BY USING A BLOODPRESSURE CUFF AT THE ELBOW TO CUT OFF CIRCULATION AND NERVE CONTACT BETWEEN ARM AND BRAIN DR HALLETT SAYS HE FOUND EVIDENCE THAT THE BRAIN REROUTES MOTORCONTROL NETWORKS WITHIN MINUTES TWO STUDIES FROM NIH PROVE JUST HOW CREATIVE AND FLEXIBLE THE BRAIN CAN BE ALVARO PASCUALLEONE A RESEARCHER IN DR HALLETT'S GROUP MAPPED THE BRAINS OF BLIND AND SIGHTED PEOPLE BY ELECTRICALLY STIMULATING THEIR FINGERTIPS AND THEN RECORDING THE RESULTING BRAIN SIGNALS IN BLIND VOLUNTEERS WHO READ BRAILLE HE FOUND THAT THE PART OF THEIR BRAIN GOVERNING THE HIGHLY TRAINED BRAILLE READING FINGER GREW SIGNIFICANTLY LARGER THAN THAT OF THEIR SIGHTED COUNTERPARTS IN A SECOND STUDY DR PASCUALLEONE TAUGHT HEALTHY ADULT VOLUNTEERS TO PLAY THE PIANO AND CHARTED THE RESULTING BRAIN CHANGES WE WANTED TO LOOK AT THE CHANGES THAT TAKE PLACE IN THE BRAIN WITH THE ACQUISITION OF A NEW SKILL HE SAYS WE TAUGHT A FIVEFINGER EXERCISE UP AND DOWN THE SCALES ONE GROUP PRACTICED DAILY FOR FIVE DAYS ANOTHER GROUP USED THE PIANO WITHOUT TRAINING THEY JUST HIT THE KEYS WITHOUT LEARNING ANYTHING HIS FINDINGS WERE SWIFT AND ASTONISHING THERE WERE TREMENDOUS CHANGES IN THE SIZE VERY DRAMATIC CHANGES IN THE BRAIN'S REPRESENTATION OF HAND MUSCLES IN THE SUBJECTS WHO LEARNED THE PIANO EXERCISE HE SAYS THEY MORE THAN TRIPLED THE SIZE OF THEIR BRAIN'S MOTOR MAPS AND THESE CHANGES PARALLELED THEIR IMPROVEMENT IN PERFORMANCE HE SAYS VOLUNTEERS WHO JUST TICKLED THE IVORIES AIMLESSLY SHOWED LITTLE OR NO CHANGE BUT THE BIGGEST SURPRISE CAME FROM VOLUNTEERS IN A SPECIAL CONTROL GROUP WHO WERE TAUGHT THE PIANO EXERCISE BUT WERE ONLY ALLOWED TO REHEARSE IT MENTALLY NOT MANUALLY WHILE LOOKING AT THE KEYBOARD AFTER FIVE DAYS THE BRAINS OF THESE PEOPLE WERE IDENTICAL TO THOSE WHO HAD MANUALLY PRACTICED THE RESEARCHER SAYS THE SAME CELL NETWORKS INVOLVED IN EXECUTING A TASK ARE ALSO INVOLVED IN IMAGINING IT FOR PERFORMERS OR ATHLETES THIS DISCOVERY STRENGTHENS THE CASE FOR SIMULATED PRACTICE SESSIONS SUCH AS MENTAL TENNIS OR MENTAL CHESS THOSE WHO STAND TO BENEFIT THE MOST FROM THESE NEW DISCOVERIES ARE PARALYZED STROKE PATIENTS WHO MUST STRUGGLE TO REESTABLISH THE BRAIN/MUSCLE CONNECTION THROUGH LONG PAINFUL AND FRUSTRATING SESSIONS OF PHYSICAL THERAPY THE NEW IMAGING TECHNIQUES PROVIDE PROOF OF THE BRAIN'S POWER TO RESTRUCTURE ITS MOVEMENTCONTROL CENTER IN WAYS THAT DEFY RECENT CONVENTIONAL WISDOM ONE SUCH PROOF COMES FROM ALAN GEVINS DIRECTOR OF THE NONPROFIT EEG SYSTEMS LABORATORY AND PRESIDENT OF SAM TECHNOLOGY INC OF SAN FRANCISCO HIS LAB AND COMPANY ARE JOINTLY DEVELOPING A HYBRID IMAGING TECHNOLOGY WHICH BLENDS THE SPEEDY MEASUREMENTS OF BRAIN FUNCTION FOUND IN OLDSTYLE ELECTROENCEPHALOGRAMS OR EEGS WITH THE DEPTH OF ANATOMICAL DETAIL FOUND IN MAGNETIC RESONANCE IMAGING OR MRIS VOLUNTEERS WEAR A SOFT HELMET STUDDED WITH 124 METAL SENSORS THAT PAINLESSLY MEASURE THE BRAIN'S ELECTRICAL DISCHARGES THE COMPUTERENHANCED TECHNOLOGY CAPTURES THE UNFOLDING OF A THOUGHT BEHIND A MOVEMENT WITH IMAGES TAKEN EVERY FOUR MILLISECONDS OR 250 TIMES FASTER THAN THE FASTEST MRI ALONE THE PICTURES LOOK LIKE TIMELAPSE PHOTOGRAPHS OF A BRANCHING LIGHTNING BOLT THROUGH THE BRAIN AMONG HIS MOST STUNNING IMAGES OF THE BRAIN IN ACTION WAS AN EEG OF A 25YEAROLD WISCONSIN WOMAN WHO HAD A DEVASTATING STROKE WHILE GIVING BIRTH TWO YEARS EARLIER THAT STROKE ON THE RIGHT SIDE OF HER BRAIN HAD LEFT THE WOMAN PARALYZED ON THE LEFT SIDE OF HER BODY THROUGH REHABILITATION SHE RECOVERED THE ABILITY TO FLEX AND EXTEND HER LEFT ARM THOUGH EXTENSIONS REMAINED DIFFICULT HER DOCTORS INCLUDING PAUL BACHYRITA OF THE UNIVERSITY OF WISCONSIN AT MADISON WANTED TO KNOW WHAT HAPPENED INSIDE THE BRAIN DURING THIS RECOVERY THEY FLEW HER TO DR GEVINS IN SAN FRANCISCO WHO CAPTURED A PICTURE OF BRAIN REORGANIZATION IN WHICH THE CONTROL CENTER LITERALLY CHANGED HEMISPHERES THE EEG SHOWS THE WOMAN'S BRAIN HAD REASSIGNED CONTROL OF HER LEFTARM EXTENSIONS FROM ITS OLD SPOT ON HER STROKEDAMAGED RIGHT BRAIN SHIFTING IT ALL THE WAY OVER TO HER BRAIN'S LEFT SIDE PARADOXICALLY THE ACT OF FLEXING HER LEFT ARM REMAINED CONTROLLED BY THE USUAL AREA OF HER BRAIN'S RIGHT SIDE BUT PICTURES TAKEN AS SHE EXTENDED HER LEFT ARM CLEARLY SHOW HER MOTORCONTROL NETWORKS FIRING THEIR MOVE SIGNALS ON THE LEFT SIDE OF HER BRAIN IT WAS A SURPRISING FINDING DR GEVINS RECALLS WE THOUGHT IT WAS AN ERROR WE CHECKED IT SEVERAL TIMES PROOF OF SUCH RECOVERIES IS NEW TO NEUROLOGY THIS IS SO COUNTERINTUITIVE SAYS ROGER SIMON ASSOCIATE PROFESSOR OF NEUROLOGY AT UCSF AFTER 15 YEARS IN NEUROLOGY RESEARCH GOVERNED BY THE DOGMA THAT MOVEMENT ON ONE SIDE OF THE BODY WAS CONTROLLED BY THE OPPOSITE SIDE OF THE BRAIN DR SIMON FIRST LEARNED OF SAMESIDED BRAIN CONTROL IN EARLY 1992 THIS IS VERY HOT HE SAYS GIVEN SUCH POWER IN THE BRAIN TO REBUILD FUNCTIONAL NETWORKS IN CREATIVE WAYS THE UNIVERSITY OF WISCONSIN'S DR BACHYRITA BELIEVES PHYSICIANS SHOULD INVEST MORE TIME IN INDIVIDUALIZED THERAPY FOLLOWING INJURY OR STROKE THERE IS A LESSON HERE FOR REHABILITATION HE SAYS WE USUALLY GIVE UP MUCH TOO SOON 9310130071 931013 LEISURE & ARTS WORLD BOOK FAIR SPOTLIGHTS NATIONALISM BY ANNE MIDGETTE FRANKFURT GERMANY IN ITS CONSTANT SEARCH FOR CURRENT TOPICS THE NEWS MEDIA MORE AND MORE IS FEEDING ON ITSELF IN AUGUST VANITY FAIR RAN A FULLLENGTH FEATURE NOT ON THE WHITE HOUSE BUT ON ITS PRESS CORPS ON OCT 5 THE OPENING DAY OF THE 45TH FRANKFURT BOOK FAIR THE MEDIA NEWS IN GERMANY WAS THAT THE COUNTRY'S LEADING NEWS MAGAZINE DER SPIEGEL HAD PRINTED THE BOOK FAIR'S OPENING ADDRESS IN ADVANCE OF ITS BEING GIVEN BY DUTCH AUTHOR HARRY MULISCH WHEN QUESTIONED BOOK FAIR OFFICIALS REACTED WITH THE SAME DISTASTE AS BUCKINGHAM PALACE OFFICIALS WHEN THE QUEEN'S CHRISTMAS SPEECH WAS SCOOPED BY A LONDON TABLOID IN 1992 YET IT SEEMED A FITTING WAY TO MARK THE OPENING OF A MAJOR MEDIA SPECTACLE MEDIA FEEDING ON MEDIA THE REPRINTING OF THE PRINTED WORD DESPITE THE THREAT OF RECESSION THE FRANKFURT BOOK FAIR REMAINS THE YEAR'S MOST IMPORTANT EVENT FOR ANYONE INVOLVED IN THE BUSINESS OF MAKING BOOKS SPREAD THROUGHOUT A MASSIVE COMPLEX OF BUILDINGS CONNECTED BY MOVING WALKWAYS IT INCLUDES EXHIBITS AND CONFERENCE ROOMS A LITERARY AGENTS' CENTER POLICED BY UNIFORMED GUARDS A CIRCUSLIKE TENT FOR AUTHOR READINGS AND OVER 355000 DIFFERENT BOOKS MILLING AROUND THE STANDS OF 8400 EXHIBITORS FROM 95 COUNTRIES A SLIGHT DROP FROM LAST YEAR ARE DISTRIBUTORS AND AGENTS JOURNALISTS AND BOOKSELLERS THE FAIR IS LIKE A GIANT SOCKET WAITING FOR A PLUG ONE CAN HARDLY HELP MAKING A CONNECTION THE LION'S SHARE OF INTERNATIONAL BOOK NEGOTIATIONS ARE TRANSACTED HERE EVERY YEAR WHETHER IT'S A DEAL FOR FOREIGN RIGHTS AT ONE OF THE CONFERENCE TABLES IN THE SPACIOUS PENGUIN STAND OR A MUSEUM SALE IN THE SMALL CORNER OCCUPIED BY THE BRITISH ART PRESS CORACLE WE DO A YEAR'S WORTH OF BUSINESS HERE SAYS CORACLE FOUNDER SIMON CUTTS FOR A SMALL PRESS THIS JUSTIFIES THE EXPENSE FOR THE 5 1/2 DAYS OF THIS YEAR'S FAIR OCT 611 A MIDSIZE STAND MEASURING 2 METERS BY 4 METERS COST ABOUT 2000 WHICH DIDN'T INCLUDE SUCH AMENITIES AS CARPETING CHAIRS OR ELECTRICITY BECAUSE WORDS ARE THE COMMODITY AT ISSUE THE BOOK FAIR REPRESENTS NOT ONLY A BUSINESS EXCHANGE BUT ALSO A SYMBOLIC FOCUS OF CURRENT INTERNATIONAL THOUGHT OPENING SPEECHES THIS YEAR REFERRED TO RECESSION ANTIFOREIGNER FEELINGS IN GERMANY AND SALMAN RUSHDIE AND MR MULISCH'S LEAKED OPENING ADDRESS FOCUSSED ON THE CONCEPT OF NATIONALISM WHICH AS DEFINITIONS OF THE TERM ARE THRASHED OUT FROM BOSNIA TO BYELORUSSIA IS NOTHING IF NOT A CURRENT TOPIC BUT THE BOOK FAIR ITSELF SHOWED THAT THE ACTUAL WORKING RELATIONSHIP OF A NATION'S IDENTITY TO ITS LANGUAGE IS HIGHLY UNCERTAIN WHILE GALLIMARD SUHRKAMP OR PENGUIN ARE TOO WELLESTABLISHED TO HAVE TO CONSIDER SUCH ISSUES THE SRI LANKAN EXPORT DEVELOPMENT BOARD AND THE KENYAN PUBLISHER JACARANDA DESIGNS ARE MORE LIKELY TO BE IDENTIFIED AS NATIONAL ENTITIES THAN AS LITERARY OR LINGUISTIC FORCES IN FACT A MAJORITY OF BOOKS THEY DISPLAYED WERE IN FRENCH AND ENGLISH AND THERE'S A DIFFERENCE BETWEEN A NATIONAL PUBLISHER AND A NATIONAL LITERATURE THE TURKS PROUDLY CELEBRATED THEIR FIRSTEVER COLLECTIVE NATIONAL DISPLAY BUT MANY OF THE TITLES WEREN'T TURKISH HERMANN HESSE'S BOZKIRKURDU OR STEPPENWOLF FOR EXAMPLE WHILE A SMALL BRETON PRESS FEATURED SUCH BRETON TRANSLATIONS AS PER AR C'HONIKL OR PETER RABBIT FROM A BUSINESS STANDPOINT ONE PURPOSE OF THE BOOK FAIR IS TO BREAK DOWN NATIONAL AND LINGUISTIC BOUNDARIES BY TRANSACTING BIG DEALS FOR FOREIGN RIGHTS TO BESTSELLERS THE STANDS OF EVERY COUNTRY'S MAJOR PUBLISHER WERE HUNG WITH THE SAME BLACKANDWHITE PHOTOGRAPHS OF SUCCESSFUL AUTHORS DONNA TARTT IN FRENCH AND DUTCH TONI MORRISON IN SPANISH AND NORWEGIAN MR MULISCH DISPLAYED AS A NATIONAL TREASURE IN THE FLANDERS/NETHERLANDS EXHIBIT AND AS A MONEYMAKING ASSET BY HIS GERMAN PUBLISHER THOUGH NOT YET BY PENGUIN WHICH WILL PUBLISH HIS LATEST NOVEL IN ENGLISH THIS WAS LESS OF A STATEMENT ABOUT CULTURE'S ABILITY TO TRANSCEND NATIONAL BOUNDARIES THAN A PROOF OF THE EFFICIENCY OF PUBLISHING AS A BUSINESS WHETHER THEY'RE THINKING OF BUSINESS OR IDEALISM EVERYONE AT THE BOOK FAIR HOPES THAT THE FAIR WILL ENCOURAGE THE READING OF BOOKS AT A TIME WHEN THIS ACTIVITY IS THREATENED BY THE PLETHORA OF OTHER MEDIA AVAILABLE TO THE CONSUMER A SURVEY SHOWED THAT ONLY 10 TO 20 OF THE POPULATION OF ANY GIVEN EC COUNTRY READS BOOKS FAR FEWER THAN READ THE DAILY PAPER MORE PAPER GOES INTO PRINTING GERMANY'S TELEPHONE BOOKS THAN THE ENTIRE OUTPUT OF ITS BOOK PUBLISHERS NO STATISTIC WAS AVAILABLE ABOUT THE PAPER THAT GOES INTO OTHER FORMS OF PRINT MEDIA JUDGING FROM THE BOOK FAIR ALONE THOUGH THE AMOUNT IS PRODIGIOUS PRESS FOLDERS CATALOGUES ARTICLES IN THE DAILY PAPER ALL ABOUT BOOKS THE BOOKS THEMSELVES WITH FEWER NEW RELEASES THAN LAST YEAR SAT DECORATIVELY ON DISPLAY SHELVES TODAY IT'S THE NEWS MEDIA WHICH PROVES THE POWER OF THE PRINTED WORD TO FORM OPINIONS AGAINST THIS BOOKMAKERS CAN POINT TO THE PERMANENCE OF THEIR PRODUCT WHICH AT THE FAIR WAS FREQUENTLY INVOKED BECAUSE JOURNALISM AND LITERATURE BOTH USE THE SAME MEDIUM IT'S INEVITABLE THAT THEY COME INTO COMPETITION JUST AS EACH UNDERLINES THE IMPORTANCE OF THE OTHER HENCE THE SIGNIFICANCE OF DER SPIEGEL'S PRINTING THE MULISCH SPEECH LIKE A TOURIST SNAPPING A PHOTOGRAPH OF A TRIBESMAN A MAGAZINE CAN STEAL WRITING'S SOUL TAKING A PIECE OF WRITING WHICH APPEALS TO THE ABIDING NATURE OF LANGUAGE OUT OF ITS LITERARY CONTEXT AND TURNING IT INTO PRINT JOURNALISM THE WORD AT ITS MOST EPHEMERAL AND DISPOSABLE AND THE MEDIA PROVED ITS POWER BY FURTHERING LITERATURE BY THE END OF THE WEEK IN MOST GERMAN BOOKSHOPS MR MULISCH'S ALREADY BESTSELLING NOVEL DIE ENTDECKUNG DES HIMMELS OR THE DISCOVERY OF HEAVEN A HISTORICAL FAMILY SAGA WAS COMPLETELY SOLD OUT MS MIDGETTE IS A FREELANCE ARTS WRITER BASED IN MUNICH 9310130070 931013 ECONOMY REICH TO SEEK RISE IN MINIMUM WAGE TO 475 AN HOUR AN INCREASE OF 12 BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LABOR SECRETARY ROBERT REICH IS READY TO PROPOSE RAISING THE MINIMUM WAGE TO 475 AN HOUR AN EVEN BIGGER BOOST THAN HE WAS EXPECTED TO RECOMMEND BUT THE INCREASE A 12 RISE FROM THE CURRENT BASE OF 425 MAY NOT BE ALL THAT IT APPEARS THE LABOR SECRETARY HELD OUT THE POSSIBILITY THAT AT LEAST PART OF THE 50CENT INCREASE COULD COME FROM HEALTHCARE BENEFITS PROVIDED BY EMPLOYERS UNDER THE MANDATES OF THE CLINTON HEALTHCARE PLAN MR REICH ESTIMATED THAT UNDER THE PRESIDENT'S PLAN EMPLOYEES EARNING MINIMUM WAGE AT A COMPANY WITH 50 WORKERS OR FEWER WOULD RECEIVE ABOUT 15 CENTS AN HOUR IN EMPLOYERPROVIDED HEALTHCARE BENEFITS IF THE MINIMUM HOURLY WAGE IS RAISED TO 475 THE COMPANY MIGHT PAY 460 IN WAGES AND THE REST IN HEALTHCARE BENEFITS BUSINESS GROUPS IMMEDIATELY DECRIED THE PROPOSAL AND URGED THE GOVERNMENT TO ALLOW THE MARKET TO SET WAGE LEVELS ANY ARTIFICIAL INCREASE IN WAGES OR BENEFITS IS DIFFICULT ON SMALL RETAILERS SAID JEFF PRINCE SENIOR DIRECTOR OF THE NATIONAL RESTAURANT ASSOCIATION THEY HAVE NO PLACE TO COME UP WITH THE MONEY THAT IS BEING TAKEN AWAY FROM THEIR BOTTOM LINE AT THE SAME TIME UNIONS AND OTHERS ARE URGING MR REICH TO BE MORE AGGRESSIVE IN RAISING THE MINIMUM WAGE THE AFLCIO FOR EXAMPLE WANTS THE BASE WAGE LIFTED TO 525 OVER TWO YEARS LAST YEAR ABOUT 48 MILLION AMERICANS WORKED FOR 425 AN HOUR OR LESS ACCORDING TO THE BUREAU OF LABOR STATISTICS WHILE BUSINESSES IN MOST STATES MUST ADHERE TO THE FEDERAL BASE NINE STATES AND THE DISTRICT OF COLUMBIA HAVE PREEMPTED THE FEDERAL MINIMUM WAGE WITH A HIGHER BASE THE FEDERAL BASE IS ABOUT 30 BELOW THE MINIMUM WAGE OF 1968 IN INFLATIONADJUSTED DOLLARS ACCORDING TO MR REICH IN AN INTERVIEW LAST NIGHT THE LABOR SECRETARY SAID HE HADN'T FULLY DECIDED WHAT RECOMMENDATION HE WOULD MAKE TO PRESIDENT CLINTON THOUGH HE SAID HE WOULD OFFER FORMAL ADVICE IN ABOUT TWO WEEKS IN A JULY MEMORANDUM TO THE PRESIDENT MR REICH LAID OUT ARGUMENTS FOR RAISING THE MINIMUM WAGE TO 450 AN HOUR AND INDEXING IT SO THE BASE WOULD RISE AUTOMATICALLY WITHOUT THE NEED FOR CONGRESSIONAL APPROVAL THE LAST TIME THE BASE WAGE WAS RAISED WAS IN APRIL 1991 WHEN IT CLIMBED TO ITS CURRENT LEVEL FROM 380 THAT WAS THE SECOND OF TWO STEPS THAT RAISED THE BASE FROM 335 AN HOUR WHERE IT HAD BEEN FROZEN SINCE 1981 THE MINIMUM WAGE WAS CREATED IN 1938 AT 25 CENTS AN HOUR IN THE WAKE OF THE GREAT DEPRESSION WHILE MR REICH SAID HE HASN'T YET DECIDED ON THE ISSUE OF INDEXING HE NOTED THAT PRESIDENT CLINTON HAD SUPPORTED THAT STEP DURING THE 1992 PRESIDENTIAL CAMPAIGN MR REICH SAID HOWEVER THAT IF THE WAGE IS INDEXED IT SHOULD BE TIED TO THE AVERAGE NONSUPERVISORY WAGE RATHER THAN THE INFLATION RATE OR SOME OTHER MEASURE DEBATE OVER THE MINIMUM WAGE INCREASE IS LIKELY TO CENTER ON WHETHER IT WOULD LEAD TO JOB LOSSES INDUSTRIES WITH MANY MINIMUMWAGE WORKERS SUCH AS HOTELS RETAILERS AND RESTAURANTS CONTEND THAT THEY WOULD BE FORCED TO CUT STAFF TO MAKE UP FOR THE ADDITIONAL COSTS THEY BACK UP THEIR ARGUMENTS WITH STUDIES THAT SHOW DECLINES IN PAYROLLS AFTER A WAGE INCREASE IN ADDITION THE RESTAURANT ASSOCIATION'S MR PRINCE SAID STUDIES SHOW THAT HIGHER MINIMUM WAGES DON'T IMPROVE THE STANDING OF THE WORKING POOR BUT MR REICH ALREADY IS MOVING TO BLUNT THREATS OF JOB CUTS THE MINIMUM WAGE COULD BE INCREASED TO 475 WITHOUT ANY NEGATIVE EFFECT ON EMPLOYMENT HE TOLD A NATIONAL PRESS CLUB AUDIENCE THE LABOR DEPARTMENT IS GATHERING ITS OWN ECONOMIC EVIDENCE TO SHOW THAT A MODEST WAGE INCREASE DOESN'T HURT EMPLOYMENT INDEED THE AGENCY'S CHIEF ECONOMIST LAWRENCE KATZ AN EXPERT ON THE MINIMUM WAGE IS THE AUTHOR OF A STUDY SHOWING THAT FASTFOOD RESTAURANTS IN TEXAS DIDN'T REDUCE EMPLOYMENT AFTER THE FEDERAL MINIMUM WAGE ROSE IN 1991 9310130069 931013 TUESDAY'S MARKETS STOCK PRICES FINISH MIXED DOLLAR DECLINES BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL STOCK PRICES WERE MIXED DESPITE SOME POSITIVE EARNINGS NEWS BOND PRICES WERE UNCHANGED AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE INCHED DOWN 028 POINT TO 359313 STANDARD & POOR'S 500STOCK INDEX ROSE 024 TO 46112 AND THE NASDAQ COMPOSITE INDEX GAINED 481 TO A RECORD 77246 THE DOW JONES INDUSTRIALS VACILLATED BETWEEN A SMALL LOSS AND SMALL GAIN BEFORE ENDING SLIGHTLY LOWER ANALYSTS SAID THE INDUSTRIAL AVERAGE LARGELY TRACKED THE PERFORMANCE OF THE 30YEAR TREASURY BOND WHICH ALSO MOVED IN A NARROW RANGE AMONG THE STOCKS SUPPORTING THE INDUSTRIALS WAS PROCTER & GAMBLE WHICH GAINED 5/8 TO 50 3/8 AFTER IT ANNOUNCED IT EXPECTS TO REPORT A STRONG IMPROVEMENT IN EARNINGS OTHER UPBEAT PROFIT REPORTS WERE RELEASED BY MERRILL LYNCH AND MOTOROLA MICHAEL R LATRONICA DIRECTOR OF RESEARCH AT GRUNTAL & CO SAID HE THINKS THE STOCK MARKET HAS ENTERED A CORRECTION PHASE PARTLY BECAUSE THE ENGINE OF FALLING INTEREST RATES IS LOSING STEAM WE NEED TO SEE SOME SEMBLANCE OF A STRONGER ECONOMIC RECOVERY TO GET THE MARKET GOING HE SAID OVERSEAS HONG KONG'S STOCK MARKET CONTINUED TO SIZZLE CLIMBING 07 TO ITS SEVENTH RECORD IN EIGHT TRADING DAYS THE MARKET HAS SOARED 497 THIS YEAR BECAUSE OF SOLID CORPORATE PROFITS GOOD EARNINGS PROSPECTS FOR 1994 FAST GROWTH IN CHINA AND A WAVE OF MONEY COMING FROM OUTSIDE THE REGION ESPECIALLY FROM THE US SAID ADALINE KO A DIRECTOR AT FLEMING INVESTMENT MANAGEMENT IN LONDON WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 013 TO 11342 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2639 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1081 ISSUES ROSE AND 937 FELL BOND PRICES WERE UNCHANGED THE TREASURY'S BENCHMARK 30YEAR ISSUE'S YIELD REMAINED AT 592 THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 15944 MARKS AND 106 YEN COMPARED WITH 16048 MARKS AND 10625 YEN MONDAY 9310130068 931013 SMALL STOCK FOCUS INDEX RISES TO SECOND RECORD IN A ROW AS INVESTORS ANTICIPATE GOOD EARNINGS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMALL STOCKS ROSE LIFTED BY POSITIVE EARNINGS REPORTS AND MERGER ANNOUNCEMENTS THE RUSSELL 2000 INDEX A MEASURE OF SMALL STOCKS ON THE NASDAQ MARKET AND THE NEW YORK AND AMERICAN STOCK EXCHANGES HIT A RECORD FOR THE SECOND CONSECUTIVE DAY RISING 147 OR 058 TO 25650 ANNOUNCEMENTS ARE FLYING RIGHT AND LEFT SAYS JOSEPH LOFTUS A SENIOR OVERTHECOUNTER TRADER AT LEHMAN BROTHERS THERE ARE A COUPLE OF POCKETS OF PROBLEMS BUT BY AND LARGE SMALL STOCKS ARE DOING VERY WELL MANY INVESTORS DIDN'T WAIT FOR EARNINGS TO BE ANNOUNCED AND STOCKS CLIMBED IN ANTICIPATION OF GOOD NEWS ONE OF THE LARGEST STOCKS ON THE RUSSELL 2000 TELLABS OPERATIONS SURGED 4 1/4 TO 73 1/4 BASED IN LISLE ILL THE WORLDWIDE TELECOMMUNICATIONS EQUIPMENT SUPPLIER PLANS TO ANNOUNCE ITS THIRDQUARTER EARNINGS THIS MORNING SAID PETER GUGLIELMI THE COMPANY'S CHIEF FINANCIAL OFFICER BUT INVESTORS ALREADY EXPECT THE COMPANY TO HAVE NO PROBLEM HITTING WALL STREET'S RANGE OF ESTIMATES FROM 33 TO 36 CENTS A SHARE AS REPORTED LAST WEEK TELLABS SAID IT ACQUIRED MARTIS OY A PRIVATE NETWORKING EQUIPMENT PROVIDER IN HELSINKI FINLAND FOR ABOUT 70 MILLION MR GUGLIELMI SAID THIS PURCHASE WILL ADD ABOUT 10 CENTS TO ITS EARNINGS FOR THIS YEAR INCREASING ANALYSTS' ESTIMATES TO 190 A SHARE FROM AROUND 180 A SHARE LAST YEAR THE COMPANY EARNED 120 A SHARE THE STOCK PRICE HAS BEEN MOVING UP SINCE OUR ACQUISITION ANNOUNCEMENT HE SAID WE GOT A LOT OF PRESS AFTER THE ACQUISITION ALL OF THESE TELECOM STOCKS ARE REALLY HOT LA GEAR JUMPED 1 1/4 TO 11 7/8 ON NEW YORK STOCK EXCHANGE VOLUME OF 23 MILLION SHARES 16 TIMES ITS NORMAL VOLUME THE LOS ANGELES COMPANY REPORTED THIRDQUARTER EARNINGS OF 32 CENTS A SHARE A YEAR EARLIER THE MAKER OF ATHLETIC SHOES POSTED A LOSS OF 51 CENTS A SHARE WHICH INCLUDED CHARGES TO SETTLE SEVERAL LAWSUITS THE COMPANY SAID THE INCREASES IN SALES AND EARNINGS WERE DUE PRIMARILY TO THE SHIPMENT OF STRONG FUTURES ORDERS AUGMENTED BY AT ONCE ORDERS FOR THE COMPANY'S BACKTOSCHOOL PRODUCT LINE WHICH RESULTED IN INCREASED AVERAGE SELLING PRICES IN ADDITION THE SUCCESS OF THE CHILDREN'S LA LIGHTS PRODUCT LINE INCREASED REVENUE FROM EUROPEAN OPERATIONS AND REDUCED DOMESTIC OPERATING EXPENSES ALSO CONTRIBUTED TO THE IMPROVED RESULTS CENTOCOR LEAPED 3 TO 14 1/4 RESULTS PRESENTED AT A CONFERENCE IN GERMANY FROM A FIVEYEAR STUDY OF CENTOCOR'S PANOREX ANTIBODY REVEALED THAT IT MAY BE EFFECTIVE IN PROLONGING LIFE IN PATIENTS WITH COLORECTAL CANCER SHARES OF CENTOCOR HAVE BEEN BEATEN DOWN AFTER A STRING OF DISAPPOINTING DISCLOSURES ON CENTOXIN THE COMPANY'S PRODUCT AIMED AT TREATING SEPSIS NOW SEVERAL BIOTECHNOLOGY ANALYSTS SAY CENTOCOR IS POISED FOR A COMEBACK PRUDENTIAL SECURITIES ANALYST JOSEPH EDELMAN UPGRADED HIS INVESTMENT RATING ON THE STOCK TO BUY FROM HOLD MECA SOFTWARE CLIMBED 1 1/8 TO 6 1/2 H&R BLOCK NYSE SAID IT ENTERED A DEFINITIVE MERGER AGREEMENT TO ACQUIRE MECA SOFTWARE FOR ABOUT 322 MILLION ON A FULLY DILUTED BASIS H&R BLOCK SAID ONE OF ITS SUBSIDIARIES WILL MAKE A CASH TENDER OFFER OF 6625 A SHARE FOR ALL MECA SHARES OUTSTANDING IF SUCCESSFUL AS WILL BE ACQUIRED IN A SUBSEQUENT MERGER TRANSACTION FOR THE SAME CASH PRICE THE COMPANY SAID MECA DEVELOPS SOFTWARE FOR PERSONAL FINANCES AND INCOME TAXES ALADDIN KNOWLEDGE SYSTEMS LEAPED 2 1/4 TO 9 1/4 FROM ITS INITIAL OFFERING PRICE OF 7 THE TEL AVIV COMPANY OFFERED 11 MILLION ORDINARY SHARES THROUGH COMANAGERS OSCAR GRUSS & SON AND BARINGTON CAPITAL GROUP ALADDIN KNOWLEDGE DEVELOPS AND MARKETS A FAMILY OF PROPRIETARY SOFTWARE SECURITY PRODUCTS EZEM TUMBLED 1 1/2 TO 5 1/4 THE WESTBURY NY COMPANY REPORTED A LOSS OF NINE CENTS A SHARE FOR ITS FISCAL FIRST QUARTER ENDED AUG 28 THE MANUFACTURER OF DIAGNOSTIC IMAGING PRODUCTS SAID THE DECLINE IN GROSS PROFIT FOR THE QUARTER WAS CAUSED BY REDUCED MANUFACTURING ACTIVITY IN ITS CORE CONTRAST SYSTEMS BUSINESS WHICH RESULTED FROM BOTH HIGH OPENING INVENTORY LEVELS AND LOWERTHANEXPECTED DEMAND FOR PRODUCTS THE COMPANY SAID IT EXPECTS THE REDUCED LEVEL OF MANUFACTURING ACTIVITY TO CONTINUE AND TO HURT ITS SECOND QUARTER'S GROSS PROFIT BHA GROUP DROPPED 2 3/4 TO 9 3/4 THE KANSAS CITY MO COMPANY SAID IT EXPECTS RESULTS FOR ITS FISCAL FOURTH QUARTER ENDED SEPT 30 TO BE BELOW CONSENSUS ESTIMATES OF 23 CENTS A SHARE THE COMPANY SAID IT CURRENTLY ESTIMATES EARNINGS OF 12 CENTS TO 17 CENTS A SHARE THIS WILL RESULT IN EARNINGS FOR THE FISCAL YEAR OF 65 CENTS TO 70 CENTS A SHARE A YEAR EARLIER THE COMPANY EARNED 75 CENTS A SHARE BHA GROUP MANUFACTURES REPLACEMENT PARTS AND ACCESSORIES FOR THE TYPES OF INDUSTRIAL AIR POLLUTION CONTROL EQUIPMENT KNOWN AS BAGHOUSES AND ELECTROSTATIC PRECIPITATORS 9310130067 931013 FOREIGN EXCHANGE MARK SURGES AGAINST MOST CURRENCIES ON NEWS OF COURT RULING ON MAASTRICHT BY TIMOTHY MAPES AND BENJAMIN DOLVEN SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE MARK MARCHED HIGHER AGAINST MOST OTHER CURRENCIES AS INVESTORS JUDGED THAT A GERMAN COURT RULING WON'T AFFECT THE MARK'S STATUS AS THE LINCHPIN OF THE EUROPEAN MONETARY SYSTEM LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 15940 MARKS DOWN FROM 16043 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 106 YEN DOWN FROM 10618 YEN STERLING WAS TRADING AT 15330 OFF A TOUCH FROM 15335 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10575 YEN AND AT 15948 MARKS THE DAY'S MAIN EVENT TRADERS SAID WAS A DECISION BY A GERMAN CONSTITUTIONAL COURT WHICH RULED THAT THE MAASTRICHT TREATY ON CLOSER EUROPEAN ECONOMIC AND POLITICAL UNION WAS BROADLY IN ACCORDANCE WITH THE GERMAN CONSTITUTION THE RULING CLEARED THE WAY FOR GERMAN RATIFICATION OF THE TREATY REMOVING THE LAST HURDLE IN THE WAY OF IMPLEMENTING THE MAASTRICHT ACCORD AS TRADERS TRIED TO PUZZLE OUT THE RULING'S IMPACT ON THE CURRENCY MARKETS PLAYERS INITIALLY DUMPED THE GERMAN CURRENCY BOOSTING THE DOLLAR TO 16030 MARKS JUST AFTER THE DECISION FROM AROUND 15940 MARKS JUST BEFORE IT BUT AFTER THAT INITIAL KNEE JERK PLAYERS RETURNED TO MARKBUYING WITH EVEN GREATER ENTHUSIASM PUSHING IT HIGHER FOR THE REST OF THE DAY AGAINST MOST OTHER CURRENCIES INCLUDING THE DOLLAR TRADERS EXPLAINED THAT INITIALLY THE MARK LOST SOME GROUND AS PLAYERS UNWOUND LONG POSITIONS TAKEN IN ANTICIPATION THAT THE COURT MIGHT THROW UP SOME ROADBLOCKS TO GERMAN RATIFICATION SUCH A RULING TRADERS HAD REASONED WOULD HAVE BOOSTED THE MARK AGAINST ITS COUNTERPARTS IN EUROPE BY DELAYING IMPLEMENTATION OF THE TREATY AND MONETARY UNION AND INCREASING THE TENSIONS IN THE EUROPEAN MONETARY SYSTEM BETWEEN THE STRONG MARK AND WEAKER MEMBERS SUCH AS THE FRENCH AND BELGIAN FRANCS BUT LATER TRADERS DECIDED THAT ALTHOUGH THE COURT MAY HAVE CLEARED A LEGAL PATH TOWARD CLOSER UNION AMONG THE EUROPEAN COMMUNITY COUNTRIES THE REALITY IS THAT TOUGH ECONOMIC CONDITIONS MUST STILL BE FULFILLED TO REACH MONETARY UNION AND MANY TRADERS SUSPECT THAT SOME OF THE WEAKER EMS CURRENCIES MAY BE HARD PRESSED TO REACH THAT GOAL LEAVING THE MARK AS THE MOST STABLE AND ATTRACTIVE CURRENCY IN EUROPE THE MARK FELL OUT OF FAVOR ON THE COURT STATEMENT SAID JOHN NELSON DIRECTOR OF GLOBAL FOREIGN EXCHANGE AT BARCLAYS BANK PLC IN NEW YORK BUT THEN THE MARK MOVED BACK INTO FAVOR AS PEOPLE STARTED REALIZING THAT THE POLITICAL REALITIES OF IMPLEMENTING THE TREATY WERE HARSHER HE SAID THE GERMAN MARK MAY BECOME MUCH MORE APPEALING THAN EVER FOLLOWING THE RULING AGREED ALBERT SORIA VICE PRESIDENT AT KANSALLIS OSAKE PANKKI A FINNISH BANK IN NEW YORK THE ONLY EUROPEAN CURRENCY WITH ANY STABILITY AT ALL WILL BE THE DEUTSCHE MARK HE ADDED IT MEANS THAT THE MARK IS GOING TO BE THE CURRENCY OF CHOICE IN EUROPE 9310130066 931013 LEISURE & ARTS ON DISK NIRVANA ROARS IN UTERO' BY JIM FUSILLI ON IN UTERO GEFFEN THEIR FOURTH ALBUM AND THEIR FIRST SINCE THE MONSTER HIT NEVERMIND GEFFEN NIRVANA FINDS ITSELF FACING THE PROSPECT OF CHANGE AND SUCCESS AND THE PASSAGE OF TIME HAVE SONGWRITER AND GUITARIST KURT COBAIN IN A SOUR MOOD TEENAGE ANGST HAS PAID OFF WELL/NOW I'M BORED AND OLD HE SCREAMS ON SERVE THE SERVANTS THE RECORDING'S OPENING TRACK ADDING AS MY BONES GREW THEY DID HURT/ THEY REALLY HURT BAD IN ALL APOLOGIES HE MOCKS I WAS LIKE YOU/EASILY AMUSED IN MILK IT HE SPITS I AM MY OWN PARASITE/I DON'T NEED A HOST TO LIVE AND LOOK ON THE BRIGHT SIDE IS SUICIDE ALL IS NOT WHINING AND SELFFLAGELLATION THOUGH AND COBAIN'S LYRICS NOW WORK BEST WHEN HE TURNS HIS GAZE OUTWARD RAPE ME IS POINTED IRONY THE VICTIM IS BROKEN YET RAGING WITH HATE DUMB IS AN EERIE GLIMPSE OF A MAN ADRIFT IN SELFDOUBT AND SCENTLESS APPRENTICE TELLS THE TALE OF A MAN REJECTED FROM BIRTH THE POPPISH HEARTSHAPED BOX ASIDE THE SOUND OF IN UTERO IS A SEX PISTOLSLIKE CHAOTIC ROAR AND IT IS DELIVERED WITH MORE VIOLENT URGENCY THAN ON THE BAND'S PREVIOUS MAJORLABEL ALBUM NIRVANA'S MUSIC IS THE RAW BLARE OF YOUTHFUL DISCONTENT AS IT WAS ON NEVERMIND BUT ON THE PREVIOUS RECORDING IT WAS THE SCORE TO POIGNANT TALES OF TEENAGE ANGUISH AND NOW IT IS TOO OFTEN THE BLARE UNDER BRATTY POUTING IN A TRIO SETTING THE ROCK BASSIST HAS A BIG RESPONSIBILITY AND IN LES CLAYPOOL THE GROUP PRIMUS HAS A BROADSHOULDERED BASS PLAYER ON THE BAND'S NEW ALBUM PORK SODA INTERSCOPE CLAYPOOL FULFILLS ALL OF HIS ROLES HOLDING DOWN THE RHYTHMIC CENTER TO PERMIT DRUMMER TIM ALEXANDER TO WORK OFF THE BEAT FIERCELY FILLING THE BOTTOM AND THE MIDRANGE TO ALLOW GUITARIST LARRY LALONDE'S SONIC WAILING AND SOLOING CREATIVELY IF SOMEWHAT MANIACALLY TO SHAKE UP THE GROUP'S HAMMERING SOUND CLAYPOOL DRIVES THE EXTENDED INSTRUMENTAL HAMBURGER TRAIN WITH A RELENTLESS INTRICATE MOTIF AND ON MY NAME IS MUD HE OFFERS A FLAILING PATTERN THAT ALEXANDER PUNCTURES AND COMPLEMENTS WITH A FRETLESS BASS CLAYPOOL MIMICS HIS OWN VOCALS ON THE OL' DIAMONDBACK STURGEON THOUGH HIS WHOOPING SINGING STYLE IS AN ACQUIRED TASTE CLAYPOOL IS CLEARLY A CUNNING LYRICIST HIS BANAL WORLD IS FILLED WITH CHARACTERS WHOSE LIVES ARE HOLLOW OFTEN FULL OF PAINFUL TEDIUM ACCORDINGLY THE OFTEN TUMULTUOUS MUSIC MAKES PERFECT SENSE THERE'S NOT MUCH TUMULT ON LIVE COLUMBIA JAMES TAYLOR'S 30SONG SET RECORDED DURING SEVERAL WEEKS OF RECENT CONCERT PERFORMANCES TAYLOR FINDS A COMFORTABLE SOOTHING PLACE AND MORE OR LESS STAYS THERE FOR THE ENTIRE RECORDING AS ALWAYS HIS VOCALS ARE MELODIOUS IF A TAD NONCHALANT AND THE ARRANGEMENTS DO LITTLE MORE THAN INVOKE THE ORIGINAL STUDIO VERSIONS BUT AS THE RECORDING UNFOLDS IT BECOMES INCREASINGLY CLEAR THAT TAYLOR HAS SCULPTED A CATALOGUE FILLED WITH ONE QUIET CLASSIC AFTER THE NEXT SWEET BABY JAMES FIRE AND RAIN WALKING MAN DON'T LET ME BE LONELY TONIGHT AND HIS COVER RENDITIONS SUCH AS YOU'VE GOT A FRIEND AND UP ON THE ROOF ARE SO MUCH HIS OWN THAT HE MIGHT AS WELL HAVE WRITTEN THEM THUS LIVE IS A TESTIMONY TO THE QUALITY AND CONSISTENCY OF THE SERENE SINGERSONGWRITER IN HIS LINER NOTES BERKLEE'S MATT GLASER CALLS MARK O'CONNOR'S SPLENDID NEW RECORDING A FIDDLE PLAYER'S ULTIMATE GARDEN OF DELIGHTS AND HE'S RIGHT HEROES WARNER BROS IS O'CONNOR'S TRIBUTE TO HIS IDOLS AND INFLUENCES AND ON IT HE GETS TO DUET WITH SOME OF THE BEST VIOLINISTS RANGING FROM STEPHANE GRAPPELLI AND PINCHAS ZUCKERMAN TO BLUEGRASS AND TEXASSWING LEGENDS TERRY MOORE JAMES TEXAS SHORTY CHANCELLOR KENNY BAKER AND JOHNNY GIMBLE BILL MONROE'S GOLD RUSH FEATURES BYRON BERLINE AND A SOMBER HOUSE OF THE RISING SUN PERMITS VASSAR CLEMENTS TO WORK OUT A TOUCHING BLUES EACH PERFORMANCE ON HEROES BURSTS WITH SPONTANEITY LISTEN TO O'CONNOR AND JEANLUC PONTY TRADE LICKS ON THE LATTER'S NEW COUNTRY AND THE JUXTAPOSITION OF THE TRACKS DEMONSTRATES O'CONNOR'S VERSATILITY HE PLAYS TENDERLY WITH ZUCKERMAN ON THE HEARTWRENCHING ASHOKAN FAREWELL AND SECONDS LATER TACKLES A SPRY VERSION OF THIS CAN'T BE LOVE WITH GRAPPELLI ON L SHANKAR'S BROODING NOMAD O'CONNOR FILLS THE OPEN SPACE OVER THE BUBBLING PERCUSSION THEN STEPS ASIDE FOR SHANKAR'S BLISTERING SOLO THE TWO REUNITE TO TRADE FURIOUS RIFFS BEFORE RETURNING TO THE DELICATE MELODY THAT ALI FARKA TOURE SINGS HIS BLUES IN SORHAI TAMASCHEK AND DOGON MAKES NO DIFFERENCE TOURE IS AN AUTHENTIC BLUESMAN WHOSE POWERFUL MUSIC TRANSCENDS LANGUAGE AND CULTURE ON THE SOURCE HANNIBAL THE MALI NATIVE PRESENTS 10 SONGS RICH WITH PASSION DRIVEN BY HIS EXPRESSIVE VOICE AND INVENTIVE GUITAR PLAYING THAT INCORPORATES DELTA BLUESSTYLE PICKING AND REPETITIVE SINGLESTRING TRILLING FOUND IN WEST AFRICAN POP THE DRONING GOYE KUR IS A SALIF KEITALIKE PERFORMANCE FEATURING TOURE ON ELECTRIC GUITAR AND NJARKA FIDDLE AND CINQUANTE SIX IS AN INSTRUMENTAL WORTHY OF LEO KOTTKE OR JOHN FAHEY ON YENNA AND I GO KA TOURE DRIVES A HARD RIFF ON ACOUSTIC GUITAR PLENTY OF RIGHTHAND SNAP AS HE TELLS HIS TALE A QUICK READ OF THE SHORT SUMMARIES IN THE LINER NOTES IS ALL THAT'S NEEDED TO FOLLOW ALONG THE CHIRPING PERCUSSION BY THE THREEMEMBER GROUPE ASKO ENLIVENS INCHANA MASSINA A SONG OF PRAISE TAJ MAHAL JOINS TOURE FOR TWO NUMBERS INCLUDING ROUCKY WHICH MORE THAN ANYTHING DEMONSTRATES THE UNIVERSALITY OF THE BLUES 9310130065 931013 WHO'S NEWS WASHINGTON POST CO WASHINGTON POST CO WASHINGTON KAPLAN EDUCATIONAL CENTERS AN EDUCATIONAL AND TESTPREPARATION COMPANY NAMED JONATHAN GRAYER 28 YEARS OLD EXECUTIVE VICE PRESIDENT THE NEWLY CREATED POSITION IS PART OF A CONVERSION TO A NEW MANAGEMENT STRUCTURE AT THE UNIT OF THIS MEDIA COMPANY 9310130064 931013 INTERNATIONAL BRIEF ABNAMRO HOLDING NV DUTCH BANK WILL SET UP SUBSIDIARY IN KAZAKHSTAN ABN AMRO BANK NV OF THE NETHERLANDS SAID IT IS SETTING UP A SUBSIDIARY IN KAZAKHSTAN IN COLLABORATION WITH LOCAL BUSINESS PARTNERS AND THE WORLD BANK'S INTERNATIONAL FINANCE CORP AFFILIATE ABN AMRO BANK KAZAKHSTAN CAPITALIZED AT 10 MILLION IS EXPECTED TO START OPERATIONS IN ALMATY THE KAZAKH CAPITAL IN THE FIRST HALF OF NEXT YEAR IT WILL BE ONE OF THE FIRST WESTERNCONTROLLED JOINT VENTURE COMMERCIAL BANKS IN KAZAKHSTAN ABN AMRO WILL HAVE A 51 STAKE IN THE UNIT ALONGSIDE KRAMDS BANK THE FINANCIAL ARM OF KRAMDS CORP A KAZAKH BUSINESS GROUP WITH 29 AND THE IFC WITH 20 ABN AMRO IS A UNIT OF ABNAMRO HOLDING NV KRAMDS CORP WAS SET UP IN 1988 AS AN ASSOCIATION OF VARIOUS STATEOWNED ENTERPRISES AND ACADEMIC INSTITUTIONS AFTER KAZAKHSTAN'S INDEPENDENCE IN 1991 IT WAS INCORPORATED AS A JOINT STOCK COMPANY PRODUCING AND TRADING A VARIETY OF INDUSTRIAL GOODS ABN AMRO ALSO HAS APPLIED TO SET UP A FULL BANKING SUBSIDIARY IN RUSSIA 9310130063 931013 RETAILING DESIGNERS AND STORES PLAY DRESSUP WITH KIDS BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL BIGNAME DESIGNERS ARE THINKING SMALL DONNA KARAN FOR ONE HAS INTRODUCED A LINE OF KIDS' CLOTHING SO HAS TOMMY HILFIGER WHO NOTICED THAT BOYS WERE WEARING HIS MEN'SSIZE CLOTHES THERE IS A POWERFUL REASON FOR THEIR ACTION CHILDREN'S APPAREL IS A 20 BILLION INDUSTRY THAT IS GROWING EVEN WHILE MUCH ADULT CLOTHING GATHERS DUST ON RETAIL RACKS THEY LOVE LOGOS THESE KIDS SAYS PATTI COHEN DONNA KARAN CORP'S VICE PRESIDENT OF ADVERTISING AND PUBLICITY DONNA KARAN'S LINE OF CHILDREN'S CLOTHES LAUNCHED LAST SPRING RANGES FROM 20 TSHIRTS TO 225 OVERCOATS HILFIGER CORP WHICH ROLLED OUT ITS CHILDREN'S LINE THIS FALL PLANS TO MAKE KIDSWEAR A BIG PART OF ITS CHRISTMAS ADVERTISING CAMPAIGN AND NIKE INC WHICH HAS DABBLED IN CHILDREN'S CLOTHING BEFORE ROLLED OUT A FULL CHILDREN'S LINE FOR THE FIRST TIME SIX MONTHS AGO TODAY'S PARENTS HAVE ONLY SO MUCH DISPOSABLE INCOME AND THAT GOES TOWARD THEIR CHILDREN FIRST SAYS CHRISTINE BAILEY MERCHANDISING MANAGER FOR BRADLEES INC A DISCOUNT DEPARTMENTSTORE CHAIN WHOSE RESULTS HAVE SUFFERED FROM SOFT DEMAND AND BIG MARKDOWNS SEEKING BIGGER BUSINESS IN TINY TOGS BRADLEES EXPANDED ITS CHILDREN'S DEPARTMENTS ABOUT 15 TO 20 LAST YEAR MS BAILEY SAYS GROWNUPS STILL SKEPTICAL ABOUT THE COUNTRY'S ECONOMIC OUTLOOK AREN'T EXPECTED SOON TO STEP UP BUYING CLOTHES FOR THEMSELVES WHAT'S MORE CLOTHING IS MUCH LESS A STATUS SYMBOL FOR ADULTS NOW THAN IT WAS IN THE 1980S SO IT'S LESS RELEVANT FOR ADULTS TO HAVE THE NAMEBRAND FASHIONS SAYS RUTH RUBINSTEIN A FASHION SOCIOLOGIST YOU FEEL LESS GUILTY IF YOU SPEND ON YOUR KID ALSO PROPELLING THE MARKET IS THE OBVIOUS FACTOR THAT KIDS GROW QUICKLY AND REQUIRE NEW CLOTHES AND AS THE CHILDREN GROW OLDER PARENTS ARE UNNATURALLY CONCERNED ABOUT THEIR CHILDREN FITTING IN SAYS MARIAN SALZMAN OF BKG YOUTH A NY CONSULTANT EATING ICE CREAM IN A SUBURBAN CHICAGO MALL SISTERS JIL AND JOY COPPOLETTA SAY THEIR MOTHER BARGAIN SHOPS BUT NOT FOR THEM MY MOM'S VERY INTO MAKING US LOOK OK SAYS JOY WHO IS 12 YEARS OLD SHE WANTS US TO BE IN STYLE SO THAT PEOPLE WON'T MAKE FUN OF US ADDS JIL 11 FROM A RETAILER'S STANDPOINT KIDS' CLOTHING IS A SAFE WAY TO DIVERSIFY BECAUSE STORES ALREADY HAVE LOYAL CLIENTELE WANTING SMALL STUFF FOR THEIR YOUNGSTERS AND DEMOGRAPHICS ARE CONTRIBUTING TO THE GROWTH OF THE KIDSWEAR INDUSTRY GRANDPARENTS READ GIFT GIVERS ARE LIVING LONGER AND WITH MORE BABY BOOMERS AS PARENTS THERE ARE A LOT MORE KIDS THESE DAYS ABOUT 49 MILLION UNDER 12 YEARS IN 1992 UP ABOUT 10 FROM A DECADE AGO REPORTS THE US CENSUS BUREAU WITH RETAILERS LIKE GAP INC CORNERING THE MARKET ON STAPLES LIKE SWEATS OTHERS HAVE TO CARVE OUT NICHES SAKS FIFTH AVENUE CUT BACK ON KIDS' CLOTHING A COUPLE OF YEARS AGO BECAUSE IT COULDN'T COMPETE EFFECTIVELY BUT THEN STARTED ROLLING OUT SPECIAL HIGHEREND BABY BOUTIQUES LAST YEAR ITS SPECIALOCCASIONDRESSES BUSINESS WHERE PRICES RANGE FROM 85 TO 1500 IS SAKS'S SHINING STAR THIS YEAR SAYS KIM ANDERSONCURRY A MERCHANDISING MANAGER FOR CHRISTMAS SAKS IS PROMOTING A RED PLAID TAFFETA DRESS AND MATCHING MADAME ALEXANDER DOLLPRICED TOGETHER AT ABOUT 170 RETAILERS DIDN'T ALWAYS HAVE SO MANY WAYS TO REACH KIDS UNTIL ABOUT THE 1930S CHILDREN WORE ONLY SCALEDDOWN VERSIONS OF ADULT CLOTHES NOTHING SPECIALLY TAILORED FOR THEM SAYS DR RUBINSTEIN THE FASHION SOCIOLOGIST THEN FOR YEARS THEY COULD BUY ONLY THE VERY FRILLY OR VERY PLAIN GENERALLY IN TRADITIONAL PALE PINK AND BLUE COLORS NOW ADULT FASHIONS ARE TRANSLATED INTO CLOTHES FOR CHILDREN FASTER THAN EVER BEFORE SAYS GREG CASSELL A MERCHANDISE MANAGER FOR NEIMAN MARCUS KIDS ARE ALSO MORE VOCAL ABOUT WHAT THEY LIKE PARTLY DUE TO PEER PRESSURE AT AN EARLIER AGE WITH MORE AND MORE CHILDREN IN DAY CARE SAYS CONSULTANT JUDITH LANGER MS COHEN OF DONNA KARAN SAYS THAT UNLIKE ADULTS CHILDREN HAVE NO PROBLEM MARCHING RIGHT UP TO MS KARAN TO TELL HER I DON'T LIKE THAT HOW LONG WILL THE KIDSWEAR EXPLOSION LAST KURT BARNARD PUBLISHER OF RETAIL MARKETING REPORT WARNS THAT THE POPULARITY WILL WEAR OUT AS BOOMERS AGE AND HE THINKS BECOME LESS LABELCONSCIOUS THEN HE SAYS THAT HUGE CONSUMER GROUP WILL BE MORE CONCERNED ABOUT BUYING HAIRPIECES THAN CUTE KIDS CLOTHES 9310130062 931013 INTERNATIONAL BRIEF TAKASHIMAYA CO PRETAX PROFIT FOR FIRST HALF DROPPED 89 TO 36 MILLION JAPANESE DEPARTMENT STORE TAKASHIMAYA CO REPORTED THAT UNCONSOLIDATED PRETAX PROFIT FOR ITS FISCAL FIRST HALF ENDED AUG 31 FELL 89 FROM THE YEAREARLIER PERIOD PRETAX PROFIT WAS 380 MILLION YEN 36 MILLION FOR THE HALF DOWN FROM YEAREARLIER 345 BILLION YEN EARNINGS PER SHARE ROSE 82 TO 868 YEN EIGHT CENTS FROM A YEAREARLIER 477 YEN FOR ITS FISCAL YEAR WHICH ENDS FEB 28 1994 THE COMPANY PREDICTED PRETAX PROFIT OF THREE BILLION YEN UNCHANGED FROM PREVIOUS FORECASTS BUT SALES WERE REVISED DOWNWARD 07 TO 730 BILLION YEN FROM THE PREVIOUS FORECAST OF 735 BILLION YEN NET INCOME FOR THE YEAR IS EXPECTED TO JUMP TO FOUR BILLION YEN FROM A YEAREARLIER 113 BILLION YEN PRIMARILY ON PROCEEDS OF SALES OF LAND ASSETS A TAKASHIMAYA SPOKESMAN CITED FURTHER COSTCUTTING EFFORTS AS THE MAIN REASON THAT EARNINGS FORECASTS REMAINED INTACT 9310130061 931013 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 ANADARKO PETROLEUM CORP 100 MILLION OF NOTES DUE OCT 15 2003 PRICED AS 5875S AT 99625 TO YIELD 5925 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 67 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO BOEING CO 125 MILLION OF BONDS DUE OCT 15 2043 PRICED AS 6875S AT 99788 TO YIELD 689 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 84 BASIS POINTS ABOVE THE TREASURY'S 7125 30YEAR BOND RATED SINGLEA1 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON CHRYSLER FINANCIAL CORP 250 MILLION OF NOTES DUE OCT 15 1998 PRICED AS 5375S AT 99806 TO YIELD 542 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 82 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC CHRYSLER FINANCIAL IS A CHRYSLER CORP UNIT COMMONWEALTH EDISON CO 235 MILLION OF DEBENTURES DUE OCT 15 2005 PRICED AS 64S AT 99684 TO YIELD 6438 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 120 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY PAINEWEBBER INC CORESTATES CAPITAL CORP 200 MILLION OF SUBORDINATE NOTES DUE OCT 15 2003 PRICED AS 5875S AT 99797 TO YIELD 5902 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 67 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC CORESTATES CAPITAL IS A CORESTATES FINANCIAL CORP OF PHILADELPHIA UNIT US LEASING CORP 150 MILLION OF NOTES DUE OCT 15 2003 PRICED AS 595S AT 9973 TO YIELD 5986 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 77 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO VIRGINIA ELECTRIC & POWER CO 200 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE OCT 1 2023 PRICED AS 675S AT 98779 TO YIELD 6846 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE BONDS WERE WON IN A COMPETITIVE BID BY CS FIRST BOSTON VIRGINIA ELECTRIC IS A DOMINION RESOURCES INC UNIT INSIGNIA FINANCIAL GROUP INC INITIAL OFFERING OF 39 MILLION CLASS A COMMON SHARES PRICED AT 16 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FAIRFAX COUNTY VIRGINIA INDUSTRIAL DEVELOPMENT AUTHORITY 121 MILLION OF HOSPITAL REVENUE REFUNDING BONDS PRICED BY MERRILL LYNCH & CO YIELDS RANGE FROM 275 IN 1994 TO 535 IN 2023 MOODY'S RATED THE BONDS DOUBLEA AND S&P ASSIGNED A DOUBLEAMINUS RATING GUAM POWER AUTHORITY 100 MILLION OF 1993 SERIES A REVENUE BONDS PRICED BY A MORGAN STANLEY & CO GROUP YIELDS RANGE FROM 395 IN 1996 TO 555 IN 2023 S&P RATED THE BONDS TRIPLEB LOS ANGELES DEPARTMENT OF WATER AND POWER 125 MILLION OF 1993 ELECTRICPLANT REVENUE BONDS APPARENTLY WON BY A PRUDENTIAL SECURITIES INC GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 521 YIELDS RANGE FROM 42 IN 1999 TO 529 IN 2033 MOODY'S RATED THE BONDS DOUBLEA AND S&P IS EXPECTED TO ASSIGN A DOUBLEA RATING LOUISIANA PUBLIC FACILITIES AUTHORITY 1376 MILLION SERIES 1993 SPECIAL INSURANCE ASSESSMENT REVENUE BONDS PRICED BY A SMITH BARNEY SHEARSON INC GROUP YIELDS RANGE FROM 345 IN 1995 TO 47 IN 2002 THE BONDS ARE INSURED BY FINANCIAL SECURITY ASSURANCE AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P SALT RIVER ARIZONA PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT 7385 MILLION OF 1993 SERIES C ELECTRIC SYSTEM REFUNDING BONDS PRICED BY A BEAR STEARNS & CO INC GROUP YIELDS RANGE FROM 3 IN 1996 TO 529 IN 2016 FITCH INVESTORS SERVICE INC RATED THE BONDS DOUBLEA MOODY'S AND S&P ALSO ARE EXPECTED TO ASSIGN DOUBLEA RATINGS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES GOLD 1625 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993G35 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY NIKKO SECURITIES CO INTERNATIONAL THE OFFERING SERIES 1993224 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS BELGIUM SOVEREIGN 500 MILLION OF 55 EUROBONDS DUE NOV 5 2003 AT ISSUE AND REOFFER PRICE 99094 VIA MERRILL LYNCH INTERNATIONAL BONDS YIELD 562 A MARGIN OF 32 BASIS POINTS OVER COMPARABLE TREASURY FEES 0325 COMIT FINANCE JERSEY ITALIAN PARENT 100 MILLION CANADIAN DOLLARS OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE NOV 10 2003 AT ISSUE AND REOFFER PRICE PAR VIA KIDDER PEABODY SECURITIES CO INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH CANADIAN BANKERS' ACCEPTANCE RATE LESS 30 BASIS POINTS MINIMUM COUPON 6875 MAXIMUM 9 GUARANTOR BANCA COMMERCIALE ITALIANA FEES 05 DENMARK SOVEREIGN 120 MILLION OF 34 EUROBONDS DUE DEC 12 1994 AT ISSUE AND REOFFER PRICE 1001 VIA FUJI INTERNATIONAL FINANCE PLC BONDS YIELD 33 FEES 01 DEPFA FINANCE NV AMSTERDAM GERMAN PARENT 500 MILLION OF 7125 EUROBONDS DUE NOV 11 2003 AT ISSUE PRICE 101397 VIA SALOMON BROTHERS INTERNATIONAL AND UBS LTD REOFFERED AT 99722 TO YIELD 716 A MARGIN OF 25 BASIS POINTS OVER COMPARABLE GILT GUARANTOR DEUTSCHE PFANDBRIEF UND HYPOTHEKENBANK AG FEES TWO GENERAL MOTORS ACCEPTANCE CORP OF CANADA US PARENT 100 MILLION CANADIAN DOLLARS OF 7 EUROBONDS DUE MAY 10 1999 AT ISSUE PRICE 100685 VIA RBC DOMINION SECURITIES LTD REOFFERED AT 99135 TO YIELD 719 A SPREAD OF 97 BASIS POINTS ABOVE 65 CANADIAN GOVERNMENT BOND OF 1998 GUARANTOR GENERAL MOTORS ACCEPTANCE LAUNCHED OFF GUARANTOR'S EURO MEDIUMTERM NOTE PROGRAM FEES 1875 NATIONAL BANK OF HUNGARY HUNGARY ONE BILLION FRENCH FRANCS OF 8 EUROBONDS DUE NOV 12 1999 AT ISSUE AND REOFFER PRICE PAR VIA CREDIT LYONNAIS BONDS YIELD 8 A SPREAD OF 235 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY FEES ONE OBEROESTERREICHISCHE KRAFTWERKE AUSTRIA 200 MILLION SWISS FRANCS OF 425 PUBLIC BONDS DUE DEC 3 2003 PRICED AT 102125 VIA CREDIT SUISSE FEES 275 STATE BANK OF NEW SOUTH WALES AUSTRALIA 125 MILLION AUSTRALIAN DOLLARS OF 65 EUROBONDS DUE NOV 30 2000 AT ISSUE PRICE 100675 VIA DEUTSCHE BANK AG LONDON BONDS YIELD 674 AFTER DEDUCTING FULL FEES OF TWO GUARANTOR STATE OF NEW SOUTH WALES THAI CENTRAL CHEMICAL PUBLIC CO THAILAND 60 MILLION OF CONVERTIBLE EUROBONDS DUE OCT 25 2003 AT ISSUE PRICE PAR VIA JARDINE FLEMING INDICATED COUPON 35 TO 4 BONDS CONVERTIBLE INTO ORDINARY SHARES OF COMPANY AT INDICATED PREMIUM 10 TO 12 BONDS CALLABLE FROM OCTOBER 1996 TO OCTOBER 1998 TO GIVE YIELD TO CALL EQUAL TO YIELD TO PUT THEREAFTER CALLABLE AT PAR CALL SUBJECT TO THENPREVAILING SHARE PRICE BEING AT LEAST 140 OF CONVERSION PRICE FOR 30 CONSECUTIVE DAYS PUT OPTION EXERCISABLE AFTER OCTOBER 1998 TO YIELD 150 TO 200 BASIS POINTS OVER COMPARABLE TREASURY TOHO ZINC CO JAPAN 120 MILLION 075 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE OCT 28 1997 AT ISSUE PRICE PAR VIA NIKKO EUROPE PLC GUARANTOR IBJ LTD WARRANTS EXERCISABLE TO PURCHASE SHARES IN COMPANY AT INDICATED PREMIUM 25 FROM NOV 4 1993 TO OCT 21 1997 TERMS FIXED OCT 18 FEES 225 LESS 02 FOR LEAD MANAGER PARIS MUNICIPALITY 12 BILLION FRENCH FRANCS OF 575 EUROBONDS DUE NOV 4 2000 AT ISSUE AND REOFFER PRICE 9905 VIA SOCIETE GENERALE BONDS YIELD 592 A SPREAD OF 19 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY FEES 03 9310130060 931013 ECONOMY CLINTON AGAIN TRIES TO SHARPEN AGENDA'S FOCUS ADOPTING SECURITY THEME PRESIDENT LINKS DRIVES FOR HEALTH CARE NAFTA BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL CHAPEL HILL NC PRESIDENT CLINTON HITCHED HIS HEALTHCARE INITIATIVE TO HIS PUSH FOR A FREETRADE PACT AS HE TRIED AGAIN TO LEND COHESIVENESS TO HIS DISPARATE AGENDA IN A MAJOR SPEECH DELIVERED AT THE UNIVERSITY OF NORTH CAROLINA THE PRESIDENT LAID OUT HIS PRIORITIES FOR THE FALL AND SAID HIS ADMINISTRATION IS NOW FOCUSED ON PROVIDING SECURITY TO AMERICANS IN A RAPIDLY CHANGING WORLD ONE KIND WAS HEALTH SECURITY THE BASIS ON WHICH HE HAS BEEN SELLING HIS MASSIVE HEALTHCARE PLAN ANOTHER WAS JOB SECURITY SOMETHING THAT HE CONTENDS THE TRADE AGREEMENT WOULD BRING THERE WAS MORE THAN SEMANTICS AT WORK HERE WHITE HOUSE AIDES ARE CONCERNED THAT THE PRESIDENT'S AGENDA HAS REMAINED DANGEROUSLY PIECEMEAL AND BROAD THE RESULT HAS BEEN THAT SOME OF HIS INITIATIVES HAVE BLURRED IN THE PUBLIC MIND AND ARE COMPETING FOR EXPOSURE IN A WAY THAT THREATENS THE WEAKEST OF THEM ESPECIALLY THE NORTH AMERICAN FREE TRADE AGREEMENT WITH CANADA AND MEXICO LAST NIGHT'S ADDRESS THEN WAS AN ATTEMPT TO DEFINE THE CLINTON PRESIDENCY IN A WAY THAT SPECIFICALLY TIES THE TROUBLED NAFTA DRIVE TO THE STRONGER HEALTHCARE CAMPAIGN HE ALSO LATCHED BOTH OF THESE TO A THIRD ISSUE THAT HAS SHOWN CONSISTENTLY STRONG SUPPORT IN PUBLIC POLLS ANTICRIME EFFORTS HE CLASSED THE CRIME ISSUE UNDER THE RUBRIC OF PERSONAL SECURITY PRESIDENT CLINTON SAID HE WAS SEEKING A WORLD IN WHICH CHANGE IS OUR FRIEND AND NOT OUR ENEMY HE LISTED THREE SEPARATE TYPES OF SECURITY THAT HIS ADMINISTRATION WOULD SEEK ECONOMIC SECURITY HEALTH SECURITY AND PERSONAL SECURITY THE CHOICE OF THE SECURITY THEME IS JARRING FOR MR CLINTON IT IS THE FLIP SIDE OF HIS CAMPAIGN REFRAIN ABOUT THE NEED FOR CHANGE WHAT'S MORE SOME CRITICS WILL ARGUE THAT COMMUNICATING AN OVERARCHING THEME AFTER THE ELEMENTS OF THE PROGRAM ALREADY ARE UNVEILED STRAINS CREDULITY MANY DEMOCRATS ALSO DOUBT WHETHER THE PRESIDENT CAN STICK TO A SINGLE THEME THE WHITE HOUSE HAS TRIED TO FIND A FOCUS BEFORE AND FAILED THE SPEECH ITSELF WAS TESTAMENT TO JUST HOW CROWDED IS MR CLINTON'S WISH LIST IN ADDITION TO HIS THREE MAJOR PRIORITIES HE INVOKED THE SECURITY THEME TO BOOST NATIONAL SERVICE FAMILY LEAVE JOB RETRAINING AND STRICTER EDUCATION STANDARDS FROM NOW ON CONTENDS JAMES CARVILLE ONE OF MR CLINTON'S TOP POLITICAL ADVISERS SECURITY WILL BE VERY CENTRAL TO WHAT THE PRESIDENT IS TRYING TO DO IT'S THE ULTIMATE TEST FOR CLINTON AND THE DEMOCRATS CAN THEY PROVIDE A NEW DIRECTION FOR ACHIEVING PROSPERITY ADDED STANLEY GREENBERG THE WHITE HOUSE POLLSTER AND A MAJOR BOOSTER OF THE THEME YOU CAN'T TAKE THE RISKS OF CHANGE UNTIL YOU ARE SECURE IN SOME VERY BASIC THINGS 9310130059 931013 WHO'S NEWS ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES INC ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES INC SPRINGDALE ARK ROSS M PATTEN 49YEAROLD PRESIDENT OF NEW YORKBASED BEDFORD CAPITAL CORP WAS ELECTED A DIRECTOR INCREASING THE SIZE OF THE BOARD TO SIX IN ADDITION THIS MAKER OF COMPOSITE BUILDING MATERIALS FROM RECYCLED PLASTIC AND WOOD FIBERS SAID DAVID CHAPMAN 50 WAS HIRED AS CHIEF FINANCIAL OFFICER A TITLE BEING RELINQUISHED BY JOE G BROOKS MR BROOKS 38 THE SON OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER JIM BROOKS REMAINS PRESIDENT AND A DIRECTOR 9310130058 931013 ABREAST OF THE MARKET INDUSTRIALS EDGE DOWN 028 POINT DESPITE STRONG EARNINGS REPORTS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STRONG PROFIT REPORTS FROM SOME CORPORATE GIANTS FAILED TO BOOST THE DOW JONES INDUSTRIAL AVERAGE WHICH SLIPPED SLIGHTLY IN HEAVY TRADING THE DOW JONES INDUSTRIALS EDGED DOWN 028 POINT TO 359313 DESPITE STRONGER EARNINGS FROM GENERAL ELECTRIC AND A BRIGHT PROFIT OUTLOOK FROM CONSUMER PRODUCTS GIANT PROCTER & GAMBLE STANDARD & POOR'S 500STOCK INDEX ADDED 024 TO 46112 BUT THE NASDAQ COMPOSITE INDEX CONTINUED ITS RECORDSETTING RUN THE INDEX A BAROMETER OF LARGE AND MEDIUM CAPITALIZATION STOCKS JUMPED 481 TO 77246 HITTING A RECORD FOR THE SECOND STRAIGHT DAY AS INVESTORS FLOCKED TO BUY TELECOMMUNICATIONS STOCKS AFTER ROBUST EARNINGS FROM A MAJOR MARKET PLAYER VOLUME ON THE BIG BOARD CLIMBED TO 263939880 SHARES UP FROM 182633510 SHARES MONDAY WHEN TRADING WAS SLOWED BY THE COLUMBUS DAY HOLIDAY ADVANCING ISSUES OUTPACED DECLINERS 1081 TO 937 THE OVERTHECOUNTER MARKET IS ACTING SPECTACULARLY AND I THINK THAT'S THE ONE THING THAT IS HOLDING THE LISTED MARKET UP SAID THOMAS GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER HEADING INTO OCTOBER MANY INVESTORS WERE TAKING A CAUTIOUS APPROACH TO THE MARKET MR GALLAGHER SAID SOME WERE SO PESSIMISTIC ABOUT THE OUTLOOK FOR THIRDQUARTER PROFITS THAT THEY SHORTED STOCKS HEAVILY SELLING BORROWED SHARES ON THE BELIEF THAT THEY COULD PAY BACK THEIR DEBTS AT CHEAPER PRICES WHEN STOCKS PLUNGED THIS MONTH BUT THAT BIG DROP IN STOCK PRICES HASN'T OCCURRED I THINK PEOPLE CONTINUE TO FEEL THAT THERE IS GOING TO BE SOME SORT OF OCTOBER DECLINE AND WHAT YOU ARE GETTING INSTEAD IS AN ENORMOUS RALLY IN THE OVERTHECOUNTER MARKET MR GALLAGHER SAID HE SAID THE RALLY IN THE NASDAQ MARKET HAS BEEN IN LARGE PART FUELED BY A SUDDEN SURGE OF SHORTCOVERING IN WHICH TRADERS WHO HAVE MADE BEARISH BETS ON THE MARKET ARE FORCED TO BUY STOCKS TO COVER THEIR POSITIONS THEY'RE KILLING THE SHORTS IN THE OVERTHECOUNTER MARKET HE SAID THOUGH HE THINKS THE STRENGTH IN THE NASDAQ COMPOSITE INDEX IS ENCOURAGING HE WARNS THERE ARE SOME RED FLAGS CROPPING UP ACROSS THE STOCK MARKET ONE IS THAT THE DOW JONES UTILITY INDEX WHICH IS GENERALLY CONSIDERED A LEADING INDICATOR OF INTEREST RATES AND STOCK PRICES CONTINUES TO ERODE FALLING 145 TO 24176 YESTERDAY ROBUST PROFIT REPORTS STEERED A NUMBER OF INDIVIDUAL STOCKS HIGHER MOTOROLA JUMPED 5 TO 103 1/2 THE COMPANY REPORTED LATE MONDAY THAT THIRDQUARTER PROFIT CLIMBED TO 92 CENTS A SHARE FROM 47 CENTS A SHARE EASILY SURPASSING ANALYSTS ESTIMATES PROCTER & GAMBLE ROSE 5/8 TO 50 3/8 THE CONSUMER PRODUCTS GIANT SAID IT EXPECTS TO REPORT RECORD FIRSTQUARTER PROFIT IN THE YEARAGO FIRST QUARTER PROCTER & GAMBLE EARNED 431 MILLION OR 60 CENTS A SHARE ON SALES OF 79 BILLION BROKERAGE STOCKS FLOURISHED AFTER MERRILL LYNCH PAINEWEBBER BEAR STEARNS AND CHARLES SCHWAB REPORTED EARNINGS THAT FAR EXCEEDED ANALYSTS' EXPECTATIONS MERRILL LYNCH SURGED 2 7/8 TO 101 5/8 PAINEWEBBER 1 5/8 TO 34 3/8 BEAR STEARNS 5/8 TO 24 3/4 AND CHARLES SCHWAB 1 1/4 TO 37 3/8 RIDING THE TIDE OF HIGHER EARNINGS EXPECTATIONS MORGAN STANLEY SOARED 3 3/4 TO 88 1/2 SALOMON 1 3/8 TO 49 1/4 AND QUICK & REILLY 1 3/8 TO 39 1/4 WELLFLEET COMMUNICATIONS RALLIED 6 1/8 TO 53 1/4 ON NASDAQ AFTER THE MARKET CLOSED MONDAY THE COMPANY REPORTED STRONGERTHANEXPECTED FISCAL FIRSTQUARTER PROFIT OF 36 CENTS A SHARE UP FROM 16 CENTS A SHARE A YEAR AGO RESPONDING TO THE BULLISH EARNINGS REPORT LADENBURG THALMANN AND COWEN UPGRADED INVESTMENT RATINGS ON THE COMPANY MEANWHILE INVESTORS BID UP SOME OF WELLFLEET'S COMPETITORS INCLUDING CISCO SYSTEMS WHICH LEAPED 4 7/8 TO 50 7/8 SYNOPTICS COMMUNICATIONS EDGED UP 7/8 TO 24 1/2 ON NASDAQ AFTER THE MARKET CLOSED SYNOPTICS SAID IT EARNED 8 CENTS A SHARE IN THE THIRD QUARTER AFTER A CHARGE OF 26 CENTS A SHARE FOR THE ACQUISITION OF CORAL NETWORK IN THE YEARAGO PERIOD THE COMPANY HAD PROFIT OF 21 CENTS A SHARE GENERAL ELECTRIC FELL 1 TO 95 1/2 EVEN AFTER REPORTING THIRDQUARTER PROFIT GREW TO 141 A SHARE FROM 130 IN THE YEARAGO PERIOD THE EARNINGS WERE A PENNY ABOVE THE MARK CUC INTERNATIONAL ROCKETED 4 1/8 TO 38 1/8 THE COMPANY IS TEAMING UP WITH A TIME WARNER UNIT TO CREATE AN INTERACTIVE HOME SHOPPING SERVICE FOR TIME WARNER CABLE'S FULL SERVICE NETWORK IN ORLANDO FLA TIME WARNER ADDED 5/8 TO 43 GENENTECH RALLIED 2 3/8 TO 45 3/4 MERRILL LYNCH ANALYST STUART WEISBROD TOLD HIS FIRM'S SALES FORCE TO EXPECT A POSITIVE EARNINGS SURPRISE FROM THE COMPANY GOLD STOCKS GAINED AS GOLD PRICES SHOT UP NEWMONT MINING CLOSED UP 1 7/8 TO 51 3/4 HOMESTAKE MINING 1/2 TO 18 7/8 AND COEUR D'ALENE MINES 3/8 TO 20 9310130057 931013 MARKETING BRIEF NOTED ENDOWMENT TIME WARNER INC GAVE 2 MILLION TO THE UNIVERSITY OF SOUTHERN CALIFORNIA TO ENDOW A NEWLY ESTABLISHED STEVEN J ROSS/TIME WARNER DEAN'S CHAIR AT THE USC SCHOOL OF CINEMATELEVISION MR ROSS TIME WARNER'S LATE CHAIRMAN DIED LAST YEAR 9310130056 931013 INTERNATIONAL BRIEF AB VOLVO AUTO MAKER CLARIFIES POINTS ON ITS MERGER WITH RENAULT ATTEMPTING TO RALLY SUPPORT FOR ITS PROPOSED CORPORATE MARRIAGE WITH RENAULT SA OF FRANCE AB VOLVO CLARIFIED CERTAIN ASPECTS OF THE TANGLED MERGER PACT AT A MEETING WITH ITS BIGGEST INSTITUTIONAL SHAREHOLDERS THE SWEDISH AUTO MAKER DISCLOSED THE IDENTITY OF ITS NOMINEES TO A HOLDING COMPANY CALLED RVC WHICH WOULD ANCHOR OWNERSHIP OF THE JOINT OPERATING COMPANY RENAULTVOLVO RVA BESIDES VOLVO CHAIRMAN PEHR GYLLENHAMMAR THE SWEDISH MEMBERS OF RVC'S SIXMEMBER BOARD WILL INCLUDE VOLVO'S VICE CHAIRMAN BO RYDIN AND CHIEF EXECUTIVE OFFICER SOEREN GYLL RENAULT WILL APPOINT RVC'S REMAINING THREE DIRECTORS INCLUDING THE CHAIRMAN WHO WOULD CAST A DECIDING VOTE IN NORMAL BOARD DECISIONS FRENCH INTERESTS WOULD RECEIVE A 51 STAKE IN THE HOLDING COMPANY VOLVO WOULD GET ONLY A MINORITY 49 STAKE BUT VOLVO'S INFLUENCE WILL BE SAFEGUARDED BY A PACT STIPULATING UNANIMOUS VOTES ON MANY STRATEGIC ISSUES 9310130055 931013 WHO'S NEWS PRUDENTIAL INSURANCE CO OF AMERICA PRUDENTIAL INSURANCE CO OF AMERICA NEWARK NJ THIS INSURANCE COMPANY NAMED C MICHAEL AHO 44 YEARS OLD VICE PRESIDENT AND SENIOR INTERNATIONAL ECONOMIST OF PRUDENTIAL SECURITIES INC A NEW POSITION MR AHO HAD BEEN DIRECTOR OF ECONOMIC STUDIES FOR THE COUNCIL ON FOREIGN RELATIONS 9310130054 931013 BUSINESS BRIEF UNOCAL CORP PRODUCTION OF NATURAL GAS EXPECTED TO RISE 25 BY '96 UNOCAL CORP SAID IT EXPECTS TO BOOST ITS NATURAL GAS PRODUCTION MORE THAN 25 AND CRUDE OIL AND CONDENSATE PRODUCTION 14 IN THE NEXT THREE YEARS UNOCAL'S CAPITAL EXPENDITURES FOR WORLDWIDE OIL AND GAS DEVELOPMENT ARE ALSO EXPECTED TO RISE TO ABOUT 1 BILLION IN 1994 FROM 885 MILLION THIS YEAR ROGER C BEACH PRESIDENT AND CHIEF OPERATING OFFICER OF THE LOS ANGELESBASED OIL COMPANY TOLD INDUSTRY ANALYSTS AT A MEETING IN NEW YORK HE SAID UNOCAL PLANS TO DRILL ABOUT 430 DEVELOPMENT WELLS WORLDWIDE THIS YEAR INCLUDING 270 IN NORTH AMERICA NEXT YEAR THE NUMBER WILL INCREASE TO 535 DEVELOPMENT WELLS WITH 410 IN NORTH AMERICA UNOCAL EXPECTS ITS WORLDWIDE NATURAL GAS PRODUCTION TO INCREASE TO MORE THAN TWO BILLION CUBIC FEET A DAY IN 1996 FROM 16 BILLION CUBIC FEET A DAY IN 1993 9310130053 931013 REVIEW & OUTLOOK EDITORIAL CHICAGO RULES THE INTELLECTUAL SUCCESS THAT FREEMARKET IDEAS HAVE ENJOYED IN THE FORMER SOVIET BLOC IS DUE IN LARGE PART TO THE WORK OF ECONOMISTS AT THE UNIVERSITY OF CHICAGO THEIR ACCOMPLISHMENTS ARE COLLECTING MORE AND MORE HONORS SINCE THE BERLIN WALL FELL IN NOVEMBER 1989 EVERY NOBEL ECONOMICS PRIZE HAS INCLUDED SOMEONE ON THE FACULTY OF THE UNIVERSITY OF CHICAGOAN UNPRECEDENTED FEAT YESTERDAY THE NOBEL WAS AWARDED TO ECONOMIC HISTORIANS ROBERT W FOGEL OF THE UNIVERSITY OF CHICAGO AND DOUGLASS C NORTH OF WASHINGTON UNIVERSITY IN ST LOUIS USING TECHNIQUES BORROWED FROM SOCIOLOGY AND STATISTICS THE TWO HELPED REVITALIZE THE STUDY OF ECONOMIC HISTORY AND MADE IT RELEVANT TO TODAY'S PROBLEMS IN HONORING THEM THE NOBEL COMMITTEE RECOGNIZED THE VALUE OF STUDYING THE ECONOMIC PAST TO LEARN WHAT PRINCIPLES WILL SERVE THE FUTURE ECONOMIC HISTORIANS TRY TO EXPLAIN THE ROLE OF IDEAS AND INSTITUTIONS IN HOW HUMANS ACT AND CHOOSE THEY FOCUS ON THE WAY INSTITUTIONS AND RULES PROMOTE OR RETARD PROGRESS INDIVIDUALS ARE IMPORTANT DETERMINANTS OF PROSPERITY BUT MORE IMPORTANT ARE THE RULES OF THE ECONOMIC GAME UNDER WHICH THEY OPERATE PUBLIC POLICY OF COURSE IS ESSENTIALLY ABOUT SETTING RULES AND ONE OF THE GREAT DEBILITATIONS OF OUR ERA IS THAT THE RULES ARE TOO OFTEN VAGUE OR WRONG ECONOMIC HISTORIANS FOR EXAMPLE HAVE FOUND THAT PRICE CONTROLS HAVE NEVER WORKED OVER THE 4000 YEARS THAT RECORDS OF THEIR USE EXIST THEIR FINDINGS SHOW THAT IT DOESN'T MATTER HOW SMART OR WELLINTENTIONED THE PLANNERS ARE IF YOU SET THE PRICE OF FOR EXAMPLE HEALTH CARE TOO LOW YOU ARE GUARANTEED SHORTAGES SAYS DAVID HENDERSON EDITOR OF THE NEW FORTUNE ENCYCLOPEDIA OF ECONOMICS ROBERT FOGEL HAS CHALLENGED CONVENTIONAL THINKING ABOUT ECONOMIC DEVELOPMENT HIS FIRST MAJOR WORK QUESTIONED THE VIEW THAT RAILROADS WERE THE MAJOR ENGINE OF ECONOMIC PROGRESS IN 19TH CENTURY AMERICA HE FOUND THAT IF AN ALTERNATIVE TRANSPORTATION NETWORK HAD DEVELOPED SUCH AS CANALS THE COUNTRY WOULD HAVE GROWN ALMOST AS MUCH HIS MOST CONTROVERSIAL WORK TIME ON THE CROSS SHOWED THAT AMERICAN SLAVERY DIDN'T COLLAPSE FOR ECONOMIC REASONS BUT BECAUSE IT WAS REJECTED POLITICALLY THE SYSTEM WAS PROFITABLE ALTHOUGH THE ECONOMIC PLIGHT OF SLAVES AND FREE BUT POOR WHITE FARMERS WAS ROUGHLY COMPARABLE THE POINT WAS THAT DESPITE THIS FREE FARMERS DIDN'T WANT TO BECOME SLAVES AND SLAVES DID INDEED WANT TO BECOME FREE FARMERS THIS FINDING TELLS US SOMETHING BASIC ABOUT PRINCIPLES OF HUMAN DIGNITY AND IT SUGGESTS THAT IN TRYING TO OFFER ITS CITIZENS PROSPERITY WITHOUT POLITICAL FREEDOM THE CURRENT CHINESE REGIME WILL RUN UP AGAINST POWERFUL HISTORICAL FORCES DOUGLASS NORTH'S WORK HAS FOCUSED RECENTLY ON HOW CERTAIN INSTITUTIONS ESPECIALLY PROPERTY RIGHTS AND ENFORCEABLE CONTRACTS CREATE INCENTIVES THAT ENHANCE ECONOMIC GROWTH AND WELLBEING HE HAS CONTRASTED THE VIBRANT 17TH CENTURY MERCHANT ECONOMIES OF BRITAIN AND THE NETHERLANDS WITH THAT OF SPAIN WHERE THE POWER OF PRIVILEGED ELITES AND THE ABSENCE OF SECURE PROPERTY RIGHTS LED TO A PERIOD OF LONG STAGNATION HE IS FASCINATED BY EXPLORING HOW THE RULE OF LAW CAN EVOLVE IN A WAY THAT ALLOWS MARKETS TO FUNCTION PROPERLY LATELY HE HAS WORKED ON HOW TO STRUCTURE ECONOMIC INCENTIVES IN FORMERLY STATIST NATIONS HE HAS BEEN CONSULTED BY GOVERNMENTS IN ARGENTINA AND PERU AND HAS BEEN INVITED TO MOSCOW FOR ADVICE ON REFORM HE SPENT MUCH OF THIS SPRING IN THE CZECH REPUBLIC STUDYING THE VOUCHER PRIVATIZATION PROGRAM OF FREEMARKET PRIME MINISTER VACLAV KLAUS RICHARD ROSETT FORMER DEAN OF THE UNIVERSITY OF CHICAGO BUSINESS SCHOOL SAYS MR NORTH CONVINCED THE GOVERNMENT TO ALLOW MUTUAL FUNDS GREATER FREEDOM TO MANAGE THE VOUCHERS THUS HELPING TO FOSTER VIABLE FINANCIAL MARKETS THE WORK OF ROBERT FOGEL AND DOUGLASS NORTH EXCERPTED NEARBY SEE RELATED ARTICLE NOBEL ECONOMISTS ON INSTITUTIONS AND SLAVERY WSJ OCT 13 1993 WITH OTHER ECONOMIC HISTORIANS HAS DEMONSTRATED HOW ECONOMIC INCENTIVES THE RULE OF LAW AND PRIVATE PROPERTY IMPROVED THE LIVES OF ORDINARY PEOPLE ACROSS MANY CULTURES AND CENTURIES IN DIFFERENT WAYS THESE ARE PRECISELY THE PRINCIPLES OF POLITICAL ECONOMY EMPHASIZED BY THE OTHER ECONOMISTS WHO'VE WON NOBELS FOR THE UNIVERSITY OF CHICAGO ANNUALLY SINCE 1990 GARY BECKER RONALD COASE AND MERTON MILLER THERE IS LITTLE IF ANY EMPHASIS HERE ON THE GOVERNMENT'S DUTY TO GUIDE ECONOMIC BEHAVIOR OR OUTCOMES NOTWITHSTANDING THE US GOVERNMENT'S CURRENT PREOCCUPATION WITH GUIDING THINGS THE NOBEL COMMITTEE CLEARLY HAS ITS EYE ON THE ECONOMIC ZEITGEIST THAT IS SWEEPING THE WORLD ELSEWHERE 9310130052 931013 BUSINESS BRIEF INTERNATIONAL PAPER CO PROFIT FELL MORE THAN 50 DURING THE THIRD QUARTER INTERNATIONAL PAPER CO PURCHASE NY SAID THIRDQUARTER NET INCOME DROPPED MORE THAN 50 LARGELY BECAUSE OF A ONETIME TAXRELATED CHARGE THE PAPER AND FORESTPRODUCTS COMPANY EARNED 48 MILLION OR 39 CENTS A SHARE COMPARED WITH 98 MILLION OR 81 CENTS A SHARE THE YEAR EARLIER SALES DROPPED 28 TO 34 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING INTERNATIONAL PAPER EASED 125 CENTS TO 5875 THE RESULTS INCLUDE A CHARGE OF 28 MILLION OR 23 CENTS A SHARE REFLECTING AN INCREASE IN FEDERAL INCOME TAX WITHOUT THE TAX CHARGE EARNINGS WOULD HAVE BEEN 76 MILLION OR 62 CENTS A SHARE OPERATING EARNINGS BEFORE INTEREST AND TAXES DECLINED 65 JOHN A GEORGES CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID EARNINGS REFLECTED DEPRESSED PRICING LEVELS FOR THE COMPANY'S PRODUCTS IN THE US AND OVERSEAS 9310130051 931013 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION COR THERAPEUTICS INC AN OFFERING OF THREE MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO AND MONTGOMERY SECURITIES MIRAGE RESORTS INC AN OFFERING OF FIVE MILLION COMMON SHARES VIA MONTGOMERY SECURITIES SAVOY PICTURES ENTERTAINMENT INC AN OFFERING OF 1750000 COMMON SHARES AND AN ADDITIONAL 25 MILLION PRINCIPAL AMOUNT OF CONVERTIBLE SUBORDINATED DEBENTURES DUE JULY 1 2003 VIA ALLEN & COMPANY INC 9310130050 931013 BUSINESS BRIEF LOUISIANA LAND & EXPLORATION CO MURPHY OIL TO BUY PORTION OF BRITISH GAS OIL INTERESTS LOUISIANA LAND & EXPLORATION CO SAID IT AGREED TO ALLOW MURPHY OIL CO TO ACQUIRE PART OF CERTAIN OIL INTERESTS THAT IT PLANS TO BUY FROM BRITISH GAS EXPLORATION & PRODUCTION LTD NEW ORLEANSBASED LOUISIANA LAND SAID IN AUGUST THAT IT PLANS TO BUY A 14 WORKING INTEREST IN BLOCK 16/17 IN THE NORTH SEA OFF THE COAST OF SCOTLAND FOR 232 MILLION THE PACT ANNOUNCED YESTERDAY WITH MURPHY ALLOWS THAT OIL COMPANY BASED IN EL DORADO ARK TO BUY A 274 INTEREST IN THE NORTH SEA PROPERTY FOR 454 MILLION THUS LOUISIANA'S LAND'S PROPOSED SHARE OF THE NORTH SEA PROPERTY IS REDUCED TO 1126 AT A PRICE OF 1866 MILLION A SPOKESWOMAN FOR LOUISIANA LAND SAID THE COMPANY EXPECTS TO CLOSE THE TRANSACTION BEFORE DEC 31 LOUISIANA LAND IS AN OIL AND GAS EXPLORATION AND PRODUCTION COMPANY BRITISH GAS EXPLORATION A UNIT OF BRITISH GAS PLC IS BASED IN LONDON 9310130049 931013 AMPLIFICATION STEVEN DEDIJER WISHES TO ADD HIS NAME TO YESTERDAY'S EDITORIAL PAGE ARTICLE THE CASE AGAINST SERBIA AGAIN MR DEDIJER A SERBIAN THEORETICAL PHYSICIST HEADED TITO'S ATOMIC ENERGY PROGRAM HE IS NOW A PROFESSOR OF ECONOMICS AT THE UNIVERSITY OF LUND SWEDEN 9310130048 931013 INTERNATIONAL BRIEF UNION DES ASSURANCES DE PARIS FRENCH INSURER GETS CONTROL OF CIE DE SUEZ GERMAN UNIT FRENCH STATEOWNED INSURER UNION DES ASSURANCES DE PARIS WON ITS LONGDESIRED SHARE OF THE GERMAN MARKET BY TAKING CONTROL OF COLONIA KONZERN FROM THE LARGE GERMAN INSURER'S PARENT CIE DE SUEZ IN ALL THE DEAL IS VALUED AT ABOUT 24 BILLION FRENCH FRANCS 427 BILLION THE ACQUISITION ALLOWS THE TWO FRENCH GROUPS TO SETTLE A DISPUTE THAT HAS SOURED RELATIONS BETWEEN THEM EVER SINCE UAP TOOK A MINORITY STAKE IN SUEZ'S INSURANCE UNIT GROUPE VICTOIRE IN LATE 1989 IT ALSO CLEARS THE PATH TOWARD UAP'S PRIVATIZATION EXPECTED WITHIN A MATTER OF MONTHS BY RESOLVING WHAT UAP CHAIRMAN JEAN PEYRELEVADE REFERRED TO AS HIS MAJOR STRATEGIC PROBLEM UNDER TERMS OF THE DEAL UAP WILL ACQUIRE CONTROL OVER ALMOST ALL OF SUEZ'S NONFRENCH INSURANCE HOLDINGS IN EXCHANGE UAP WILL RELINQUISH ITS 34 STAKE IN GROUPE VICTOIRE TAKE OVER OUTSTANDING DEBTS PAY A CASH PACKAGE AND ISSUE NEW UAP SHARES GIVING SUEZ 5 OF UAP'S CAPITAL 9310130047 931013 WHO'S NEWS CREDIT SUISSE CREDIT SUISSE ZURICH THIS BANKING COMPANY NAMED FRANK MEISTER 55 YEARS OLD CHIEF EXECUTIVE AND PRESIDENT OF CREDIT SUISSE ASSET MANAGEMENT INC MR MEISTER WILL REMAIN GROUP EXECUTIVE IN CHARGE OF CREDIT SUISSE'S PRIVATE BANKING IN THE US CS HOLDING IS THE PARENT OF CREDIT SUISSE 9310130046 931013 BUSINESS BRIEF COOPER INDUSTRIES INC SPINOFF EXPECTED TO RESULT IN GAIN FOR THIRD QUARTER COOPER INDUSTRIES INC SAID THAT IT EXPECTS TO REPORT A THIRDQUARTER PRETAX GAIN OF 274 MILLION FROM THE INITIAL PUBLIC OFFERING OF ITS ELECTRICAL WIRE AND CABLE DIVISION BUT THAT THE IMPACT ON EARNINGS WILL BE OFFSET BY RESTRUCTURING ACTIONS A YEAR EARLIER THE HOUSTON MANUFACTURING COMPANY HAD NET INCOME OF 942 MILLION OR 71 CENTS A COMMON SHARE ON REVENUE OF 148 BILLION THE COMPANY SAID IN JUNE IT WOULD SPIN OFF ITS BELDEN DIVISION BY THE END OF SEPTEMBER BUT IT SAID YESTERDAY THE GAIN FROM BELDEN WOULD BE OFFSET BY AMONG OTHER THINGS A NUMBER OF COSTSAVING MEASURES INCLUDING PLANNED PLANT CLOSINGS AND THE PLANNED TAXFREE SPINOFF OF ITS GARDNERDENVER INDUSTRIAL MACHINERY DIVISION 9310130045 931013 WHO'S NEWS CARTIER INC CARTIER INC NEW YORK HOWARD WARNOCK 49 YEARS OLD WAS APPOINTED VICE PRESIDENT RETAIL IN THE US SUBSIDIARY OF THIS LUXURYGOODS CONCERN SUCCEEDING HERVE MARTIN WHO LEFT TO WORK FOR THE COMPANY'S INTERNATIONAL HEADQUARTERS IN PARIS 9310130044 931013 WHO'S NEWS DMI FURNITURE INC DMI FURNITURE INC LOUISVILLE KY JOSEPH G HILL 43YEAROLD VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER OF THIS MAKER AND MARKETER OF OFFICE AND RESIDENTIAL FURNITURE WAS ELECTED A DIRECTOR THE ELECTION OF MR HILL INCREASES THE SIZE OF DMI'S BOARD TO SIX MEMBERS 9310130042 931013 WHO'S NEWS ITT CORP ITT CORP NEW YORK JON F DANSKI WAS NAMED SENIOR VICE PRESIDENT AND CONTROLLER OF THIS INDUSTRIAL AND FINANCIAL SERVICES CONGLOMERATE SUCCEEDING RAYMOND H ALLEMAN WHO RETIRED MR DANSKI 41 YEARS OLD WAS VICE PRESIDENT AND GENERAL AUDITOR FOR RJR NABISCO INC A UNIT OF TOBACCO AND PACKAGEDFOOD COMPANY RJR NABISCO HOLDINGS CORP 9310130041 931013 BUSINESS BRIEFS HOLIDAY INN WORLDWIDE A BASS PLC UNIT PLANS TO DEVELOP AND MANAGE 30 HOLIDAY INN EXPRESS HOTELS IN INDONESIA OVER THE NEXT SEVEN YEARS IN A JOINT VENTURE WITH PT HOTEL DIRGAHAYA INDAH RAYA PART OF SUSANTI GROUP TERMS WEREN'T DISCLOSED RAMTRON INTERNATIONAL CORP SAID IT RECEIVED A 105 MILLION MEMORY CHIP ORDER FROM DIGICOM INC A TAIWANBASED COMPUTER MANUFACTURER NATIONAL CITY CORP ACQUIRED OHIO BANCORP YOUNGSTOWN OHIO FOR ABOUT 220 MILLION CUBIC AUTOMATIC REVENUE COLLECTION GROUP A SUBSIDIARY OF CUBIC CORP SAN DIEGO RECEIVED A 52 MILLION CONTRACT FROM THE CHICAGO TRANSIT AUTHORITY FOR A FARE COLLECTION SYSTEM LORAL CORP NEW YORK A DEFENSE ELECTRONICS CONCERN ACQUIRED QUINTRON CORP A CLOSELY HELD FLIGHT SIMULATION AND SUPPORT CONCERN FOR 22 MILLION DIAGNOSTEK INC SIGNED AN AGREEMENT WITH AFLAC INC COLUMBUS GA TO PROVIDE MAIL PHARMACY AND PHARMACY MANAGEMENT SERVICES TO AFLAC POLICYHOLDERS TERMS WEREN'T DISCLOSED 9310130040 931013 CREDIT RATINGS BELL ATLANTIC CORP'S STABLE' DEBT RATING IS AFFIRMED BY S&P NEW YORK STANDARD & POOR'S CORP SAID IT AFFIRMED ITS STABLE RATING OF BELL ATLANTIC CORP FOLLOWING THE BABY BELL'S DECISION TO INVEST 1 BILLION IN GRUPO IUSACELL SA A MEXICAN CELLULARTELEPHONE COMPANY BELL ATLANTIC HAS 98 BILLION IN DEBT OUTSTANDING S&P'S MOVE DIFFERS FROM THAT OF MOODY'S INVESTOR SERVICE INC WHICH PLACED BELL ATLANTIC'S DEBT ON REVIEW FOR POSSIBLE DOWNGRADE MOODY'S CITED THE DIFFICULTIES OF INVESTING IN MEXICO SUCH AS COMPETITION FROM MEXICO'S NATIONAL PHONE COMPANY AND FOREIGNCURRENCY RISKS A SPOKESMAN SAID S&P WHILE ACKNOWLEDGING THE RISKS OF THE TRANSACTION SAID IT EXPECTED BELL ATLANTIC TO FUND ITS INVESTMENT INITIALLY WITH SHORTTERM DEBT AND LATER TO LIQUIDATE THE DEBT THROUGH INTERNAL CASH FLOW AND EQUITY FINANCING WITHIN THREE YEARS OF THE CLOSE OF THE TRANSACTION BELL ATLANTIC'S CREDIT STRENGTH IS MAINLY DERIVED FROM ITS TELEPHONE UNITS S&P ADDED 9310130038 931013 TECHNOLOGY RESPIRONICS TO SUSPEND VENTILATOR SHIPMENTS AFTER FDA'S REVIEW MURRYSVILLE PA RESPIRONICS INC SAID IT IS VOLUNTARILY SUSPENDING PRODUCTION AND SHIPMENTS OF ALL MODELS OF ITS BAGEASY MANUAL VENTILATOR FOLLOWING A CRITICAL US FOOD AND DRUG ADMINISTRATION REVIEW OF THE COMPANY'S MANUFACTURING PROCESSES CONTROLS AND PRODUCT LABELING HOWEVER THE COMPANY SAID IT ISN'T RECALLING THE BAGEASY MANUAL RESUSCITATOR WHICH IT SAID REPRESENTS NO SAFETY VIOLATIONS THE BAGEASY LINE COMPRISED ABOUT 8 OF RESPIRONICS'S TOTAL SALES FOR THE FISCAL YEAR ENDED JUNE 30 BUT DIDN'T CONTRIBUTE MEANINGFULLY TO THE COMPANY'S PROFITABILITY THE COMPANY SAID THE RESUSCITATOR WHICH HAS BEEN MANUFACTURED SINCE 1988 IS USED BY EMERGENCY TECHNICIANS AND HOSPITALS AS WELL AS DURING TIMES WHEN MECHANICAL VENTILATORS AREN'T AVAILABLE THE COMPANY SAID THE FDA FOUND VIOLATIONS IN THE AREA OF DOCUMENTATION AND RECORDKEEPING RESPIRONICS SAID IT WOULD SUSPEND PRODUCTION AT ITS PLUM BOROUGH PA FACILITY PENDING INSTITUTION OF NEW MANUFACTURING PROCEDURES AND CONTROLS THE COMPANY SAID IT WILL ALSO TEMPORARILY REASSIGN EMPLOYEES AT THE UNIT 9310130037 931013 WHO'S NEWS WANG LABORATORIES INC WANG LABORATORIES INC LOWELL MASS ANDRE M BOISVERT 40 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT IMAGING AND WORKFLOW PRODUCT MARKETING OF THIS COMPUTER COMPANY HE WAS MOST RECENTLY VICE PRESIDENT WORLDWIDE MARKETING AT SYNON INC IN LARKSPUR CALIF 9310130036 931013 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN SINGAPORE'S PARLIAMENT APPROVED A SWEEPING TAX REVISION BASED ON A NEW GOODS AND SERVICES TAX THAT THE GOVERNMENT HOPES WILL MAKE THE BOOMING CITYSTATE EVEN MORE COMPETITIVE AND IMPROVE ITS ATTRACTIVENESS TO FOREIGN INVESTORS THE 3 GOODS AND SERVICES TAX A VALUEADDED LEVY ON EACH STEP OF PRODUCTION AND DISTRIBUTION WILL TAKE EFFECT APRIL 1 1994 AT THE SAME TIME THE 30 CORPORATE TAX RATE WILL BE REDUCED TO 27 AND EVENTUALLY TO 25 AND THE TOP PERSONAL INCOMETAX RATE WILL FALL TO 30 FROM 33 WITH CORRESPONDING REDUCTIONS IN LOWER BRACKETS THE VAT IS EXPECTED TO PRODUCE AT LEAST 511 MILLION IN THE FIRST YEAR SINGAPORE'S PERSONAL AND CORPORATE TAXES ARE HIGH COMPARED WITH THOSE IN TAIWAN AND HONG KONG AND HAVE MADE THE ISLAND REPUBLIC LESS ATTRACTIVE FOR BUSINESS THE CHANGES ARE DESIGNED TO SHIFT THE EMPHASIS OF TAXATION TO INDIRECT FROM DIRECT LEVIES AND BROADEN THE TAX BASE FRENCH TRADE UNIONS PROTESTING 117 UNEMPLOYMENT JOB CUTS AT STATEOWNED FIRMS AND GOVERNMENT WAGE RESTRAINTS AND PRIVATIZATION PLANS STAGED NATIONWIDE STRIKES DISRUPTING TRAVEL AND MAIL DELIVERIES IT WAS THE UNIONS' FIRST SERIOUS CHALLENGE TO THE CENTERRIGHT GOVERNMENT WHICH TOPPLED THE SOCIALISTS IN MARCH TRAFFIC JAMS TIED UP MOST CITIES AS FEW AS ONE IN THREE COMMUTER SUBWAY AND STATE RAILWAY TRAINS WAS RUNNING AIR FRANCE WHICH PLANS TO CUT 4000 JOBS IN A RESTRUCTURING HALVED ITS MEDIUMHAUL FLIGHTS BRITISH AND CHINESE DIPLOMATS ANGRILY ENDED THEIR 13TH ROUND OF TALKS ON DEMOCRATIC REFORMS FOR HONG KONG WITH FEW SIGNS OF PROGRESS ANOTHER ROUND WAS SCHEDULED FOR NEXT WEDNESDAY IN BEIJING MEANWHILE UNUSUAL OPEN SQUABBLING SIGNALED SHARP DISAGREEMENTS AFTER SIX MONTHS OF TALKS ABOUT BRITAIN'S PLAN TO MAKE THE COLONY'S POLITICAL SYSTEM MORE DEMOCRATIC BEFORE SOVEREIGNTY RETURNS TO CHINA IN 1997 CHINA ACCUSED BRITAIN OF INSINCERITY AND SAID THAT WITHOUT A COMPROMISE BEIJING WOULD SCRAP HONG KONG'S LEGISLATURE AFTER 1997 HONG KONG AND BRITISH OFFICIALS LAMBASTED THE OUTBURST POLAND WAS GRANTED A 450 MILLION WORLD BANK LOAN TO SUPPORT FINANCIAL RESTRUCTURING OF ENTERPRISES AND BANKS POLITICIANS PROMISED ECONOMIC REFORM WOULD CONTINUE UNDER PARTIES THAT WON PARLIAMENTARY ELECTIONS BY CAMPAIGNING AGAINST AUSTERITY MEASURES OF THE NEW LOAN 350 MILLION WILL SUPPORT RESTRUCTURINGS OR SOCIAL SECURITY FOR WORKERS AT LIQUIDATED PLANTS AND 100 MILLION WILL BE APPLIED TO POLAND'S COMMERCIAL BANK DEBT POLAND HAS USED 917 MILLION OF WORLD BANK CREDITS TOTALING 36 BILLION UNDER A PROPOSED THREEYEAR PACT POLAND COULD BORROW AS MUCH AS 900 MILLION ANNUALLY ABOUT TWOTHIRDS OF PHILIPPINE HIGHWAYS AND HALF THE RURAL ROADS ARE IN DEPLORABLE CONDITION A SENATOR SAID BLAMING MISMANAGEMENT IN THE PUBLIC WORKS AND HIGHWAYS DEPARTMENT SEN ALBERTO ROMULO SAID A WORLD BANK STUDY THIS YEAR CITED LACK OF FUNDS FOR THE DETERIORATED ROAD SYSTEM BUT HE TOLD THE SENATE FINANCE COMMITTEE THAT THE GOVERNMENT SPENDS ONLY ABOUT HALF AS MUCH ON HIGHWAY MAINTENANCE AS IT COLLECTS FROM TOLLS AND LICENSE AND REGISTRATION FEES TAIWAN OFFICIALS PROPOSED TO MAKE DOING BUSINESS WITH CHINA EASIER THE AGENCY THAT GOVERNS TAIWANCHINA CONTACTS THROUGH THIRD PARTIES THE TWO GOVERNMENTS DON'T RECOGNIZE EACH OTHER SEEKS TO BRING MORE ORDER TO ECONOMIC AND INVESTMENT ACTIVITIES AND CREATE MORE OPPORTUNITIES FOR BUSINESS AND INDUSTRY THE PROPOSALS WOULD RETAIN THE BAN ON DIRECT TRADE MAIL AND TRANSPORT BUT WAIVE LICENSES FOR BUSINESS DEALINGS WITH CHINA AND SHARPLY REDUCE FINES NOW AS MUCH AS 559000 FOR BREAKING THE RULES THE RELAXED APPROACH WOULD BEGIN WITH SERVICE INDUSTRIES AND GRADUALLY BE EXPANDED CHINA'S TRADE DEFICIT GREW TO 697 BILLION IN THIS YEAR'S FIRST NINE MONTHS AMID BOOMING DEMAND FOR IMPORTED CONSTRUCTION MATERIALS AND LUXURY GOODS EXPORTS TOTALED 6125 BILLION AND IMPORTS 6822 BILLION LED BY A 420 EXPLOSION IN STEEL IMPORTS FROM A YEAR EARLIER HEAVY DEMAND FOR RAW MATERIALS HAS RESULTED IN HIGHER PRICES FOR THEM IN CHINA THAN ABROAD CAUSING PRODUCERS TO DIVERT EXPORT ITEMS TO THE DOMESTIC MARKET THE GOVERNMENT IN JULY CURBED IMPORTS OF LUXURY GOODS BUT STILL EXPECTS TO POST ITS FIRST ANNUAL TRADE DEFICIT IN FOUR YEARS JAPAN SURPASSED HONG KONG AS CHINA'S NO 1 TRADE PARTNER IN THE NINE MONTHS WITH A RECORD TOTAL OF 25 BILLION CHINA IMPORTED 151 BILLION OF GOODS FROM JAPAN AND SENT IT 999 BILLION OF SHIPMENTS TRADE WITH HONG KONG TOTALED 224 BILLION MEANWHILE DESPITE GOVERNMENT EFFORTS TO COOL THE ECONOMY CHINESE ECONOMISTS PREDICTED GROSS NATIONAL PRODUCT WILL GROW 135 THIS YEAR AND MODERATE TO 10 NEXT YEAR AS EFFECTS OF THE RESTRICTIONS KICK IN BEIJING LAWMAKERS BANNED FIREWORKS IN THE CHINESE CAPITAL EFFECTIVE DEC 1 CITING HAZARDS OF INJURIES AND FIRES IN THE BOISTEROUS TRADITION THAT HAS SYMBOLIZED CHINA FOR CENTURIES ZURICH'S TRANSIT AGENCY IS MODIFYING ALL 830 OF ITS TICKET MACHINES FOLLOWING 86000 IN LOSSES BECAUSE BUS AND STREETCAR RIDERS FED THE DISPENSERS THE 5 SWISSFRANC 355 FARE WITH RUSSIAN RUBLE COINS WORTH JUST A FRACTION OF A CENT 9310130035 931013 MORRISON KNUDSEN AWARDED A CONTRACT FOR BRIDGE IN CANADA BOISE IDAHO MORRISON KNUDSEN CORP SAID IT HEADS A JOINT VENTURE THAT WON A CONTRACT FOR 800 MILLION CANADIAN DOLLARS US60152 MILLION TO BUILD A BRIDGE THE CONTRACT WAS AWARDED BY THE CANADIAN GOVERNMENT MORRISON KNUDSEN CALLED IT THE LARGEST CONTRACT EVER GRANTED UNDER THE GOVERNMENT'S PRIVITIZATION PROGRAM THE BRIDGE WILL STRETCH 84 MILES ACROSS NORTHUMBERLAND STRAIGHT LINKING CANADA'S PRINCE EDWARD ISLAND WITH NEW BRUNSWICK CURRENTLY ONLY FERRY SERVICE CONNECTS TO TWO LOCATIONS WHICH ARE SITUATED JUST NORTHEAST OF MAINE AS PART OF THE CONTRACT THE JOINT VENTURE WILL IN EFFECT OWN AND OPERATE THE BRIDGE THROUGH THE YEAR 2032 AND WILL COLLECT AN ESTIMATED 18 MILLION A YEAR IN TOLLS A MORRISON KNUDSEN SPOKESMAN SAID CONSTRUCTION IS SCHEDULED TO BEGIN IN APRIL 1994 AND IS EXPECTED TO BE COMPLETED IN MID1997 MORRISON KNUDSEN SAYS IT OWNS 45 OF THE JOINT VENTURE FRENCH CONTRACTING FIRM GTM ENTREPOSE OWNS 40 AND SCE CONTRACTORS INC OF CALGARY ALBERTA OWNS 15 THE ANNOUNCEMENT CAME AFTER THE CLOSE OF TRADING YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MORRISON KNUDSEN CLOSED AT 2525 A SHARE UP 125 CENTS 9310130033 931013 WHO'S NEWS ADVANCE CIRCUITS INC ADVANCE CIRCUITS INC MINNETONKA MINN THREE NEW DIRECTORS WERE ELECTED TO THIS COMPUTER COMPANY'S BOARD INCREASING ITS SIZE TO SIX ELECTED WERE DAVID C MALMBERG 50 YEARS OLD VICE CHAIRMAN OF NATIONAL COMPUTER SYSTEMS INC OF MINNEAPOLIS STEPHEN G SHANK 49 PRESIDENT OF LEARNING VENTURES INC OF MINNEAPOLIS AND LARRY GROVES 46 PRESIDENT AND A FOUNDER OF TARGITTRONICS INC A MELBOURNE FLABASED SUBSIDIARY OF ADVANCE CIRCUITS 9310130031 931013 NISSAN MAY ELIMINATE ANOTHER 1000 JOBS SALES FORECAST DIMS TOKYO NISSAN MOTOR CO HARD HIT BY THE STRONG YEN AND A SLUMP IN DOMESTIC AUTO SALES SAID IT MAY CUT 1000 MORE JOBS SCALED BACK ITS ESTIMATE OF AUTO SALES FOR JAPAN AND WARNED IT COULD POST AN OPERATING LOSS THIS YEAR NISSAN DECIDED EARLIER THIS YEAR TO CUT ITS WORK FORCE TO 48000 EMPLOYEES FROM 53000 OVER THE NEXT THREE YEARS THROUGH ATTRITION AND HIRING CUTBACKS IF NISSAN HIRES JUST 3000 NEW EMPLOYEES IN THE COMING YEARS THE COMPANY'S PAYROLL WOULD DROP TO 47000 WORKERS MEANWHILE MR TSUJI ALSO SAID NISSAN STANDS TO SUFFER AN OPERATING LOSS IN THE FISCAL YEAR ENDING NEXT MARCH 31 IF THE YEN REMAINS AT RECENT HIGH LEVELS EARLIER NISSAN SAID IT MAY SELL SOME OF ITS STOCKHOLDINGS TO MAKE UP FOR A SHORTFALL IN PRETAX EARNINGS THIS BUSINESS YEAR MR TSUJI ALSO REVISED DOWNWARD NISSAN'S PROJECTION FOR ITS SALES OF NEW CARS AND TRUCKS IN JAPAN IN THE CURRENT FISCAL YEAR TO 117 MILLION TO 118 MILLION VEHICLES FROM AN EARLIER ESTIMATE OF 122 MILLION VEHICLES 9310130030 931013 BUSINESS BRIEF CREDIT LYONNAIS SA FIRM MGM BOARD APPROVE UNIT'S RESTRUCTURING PLAN METROGOLDWYNMAYER INC SANTA MONICA CALIF SAID ITS BOARD AND FRANCE'S CREDIT LYONNAIS SA ITS OWNER APPROVED THE DETAILS OF ITS PREVIOUSLY ANNOUNCED RESTRUCTURING PLAN THE COMPANIES SAID THEY EXPECT TO COMPLETE THE BALANCESHEET CLEANUP BY MIDDECEMBER THE PLAN FIRST ANNOUNCED IN JULY IS DESIGNED TO HELP RESURRECT THE STUDIO SO IT WILL BE ATTRACTIVE TO A BUYER WITHIN THE NEXT FEW YEARS WHILE MGM SAID ITS BALANCE SHEET WILL BE GREATLY IMPROVED AFTER THE RESTRUCTURING IT IS STILL EXPECTED TO HAVE ABOUT 500 MILLION TO 600 MILLION IN BANK DEBT NOT INCLUDING A 400 MILLION LINE OF CREDIT FROM CREDIT LYONNAIS TO FUND PRODUCTION IT SAID THAT IF THE RESTRUCTURING WERE TO HAVE BEEN COMPLETED ON SEPT 30 MGM ON A PRO FORMA BASIS WOULD HAVE HAD A RATIO OF DEBT TO SHAREHOLDERS' EQUITY OF ABOUT 1TO2 9310130029 931013 REVIEW & OUTLOOK EDITORIAL ASIDES HELP WANTED GIVEN THE MEDIA CHEERLEADING SQUADS THAT TRAIL HER HILLARY CLINTON COULD HARDLY BE BLAMED YESTERDAY FOR EXPECTING AMERICA'S MAGAZINES TO FLAK FOR HER HEALTHCARE PLAN HELPING TO SORT OUT THE SCARE TACTICS AND THE MISINFORMATION WILL BE AN IMPORTANT PART OF THE SERVICE YOU WILL BE PERFORMING SHE INSTRUCTED A MAGAZINE PUBLISHERS' CONVENTION IN ORLANDO BACK AT THE WHITE MYERS WAS SAYING THAT THE ACTUAL HEALTH PLAN MIGHT BE OUT EARLY NEXT WEEK BUT TREASURY'S ROGER ALTMAN HAS SAID IT WOULD BE SEVERAL WEEKS NO SAYS HILLARY LIEUTENANT IRA MAGAZINER IT'LL BE NEXT WEEK THIS IS A LIVING BREATHING DOCUMENT SAYS SPOKESMAN BOB BOORSTIN IT WILL CHANGE OVER TIME MS MYERS IT COULD COME AS SOON AS NEXT WEEK IT COULD BE A LITTLE LATER THAN THAT 9310130028 931013 BUSINESS BRIEF FANNIE MAE COMPANY POSTS 16 INCREASE IN THIRDQUARTER EARNINGS FEDERAL NATIONAL MORTGAGE ASSOCIATION OR FANNIE MAE REPORTED THAT THIRD QUARTER NET INCOME ROSE 16 TO 4772 MILLION OR 174 A SHARE THE GOVERNMENTSPONSORED CONCERN WHICH IS BASED IN WASHINGTON CITED STRONG GROWTH OF ITS MORTGAGE PORTFOLIO AND HEALTHY INTERESTRATE MARGINS OR THE DIFFERENCE BETWEEN WHAT IT PAYS FOR FUNDS AND WHAT IT RECEIVES FROM ITS MORTGAGES IN THE YEAREARLIER QUARTER FANNIE MAE EARNED 4129 MILLION OR 151 A SHARE THE LATEST QUARTER INCLUDED A 506 MILLION CHARGE FOR THE REPURCHASE OF DEBT COMPARED WITH A YEAREARLIER 93 MILLION CHARGE FOR DEBT REPURCHASE FOR THE NINE MONTHS FANNIE MAE'S EARNINGS ROSE 15 TO 138 BILLION OR 502 A SHARE FROM 12 BILLION OR 436 A SHARE THE LATEST NINE MONTHS INCLUDED A 1305 MILLION CHARGE FOR THE REPURCHASE OF DEBT COMPARED WITH A YEAREARLIER 243 MILLION CHARGE FOR DEBT REPURCHASE 9310130027 931013 BUSINESS BRIEF CPC INTERNATIONAL INC THIRDPERIOD NET ROSE 57 GROWTH PURCHASES ARE CITED CPC INTERNATIONAL INC REPORTED A 57 INCREASE IN THIRDQUARTER NET INCOME CITING GROWTH IN EXISTING BUSINESSES AND ACQUISITIONS IN EUROPE THE MAKER OF CONSUMER FOODS WITH BRANDS INCLUDING MAZOLA CORN OIL HELLMANN'S MAYONNAISE AND KNORR SOUPS AND SAUCES SAID THIRDQUARTER NET INCOME WAS 122 MILLION OR 79 CENTS A SHARE COMPARED WITH 1154 MILLION OR 74 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES FOR THE QUARTER INCREASED 39 TO 166 BILLION FROM A YEAREARLIER 16 BILLION THE ENGLEWOOD CLIFFS NJ COMPANY SAID ITS CONSUMERFOODS OPERATIONS HELD UP WELL DESPITE WEAK ECONOMIES IN THE US AND EUROPE CPC ALSO SAID ITS EXPANSION IN EUROPE POSITIONS IT FOR FUTURE GROWTH CITING ITS PURCHASE OF THE 200 MILLION PFANNI POTATOPRODUCTS BUSINESS IN GERMANY AND A JOINT VENTURE IN HERBS WITH MCCORMICK & CO SPARKS MD AND THE DUTCH BANK RABOBANK NEDERLAND 9310130026 931013 BUSINESS BRIEF WESTERN DIGITAL CORP LOSS IN FISCAL FIRST QUARTER WAS SMALLER THAN EXPECTED WESTERN DIGITAL CORP POSTED A NARROWERTHANEXPECTED LOSS OF 51 MILLION OR 14 CENTS A SHARE FOR ITS FISCAL FIRST QUARTER AND SAID IT TERMINATED NEGOTIATIONS TO SELL ITS SILICON CHIP PLANT TO ROCKWELL INTERNATIONAL CORP SEAL BEACH CALIF ANALYSTS HAD FORECAST A PERSHARE NET LOSS OF 50 CENTS TO 58 CENTS FOR THE FIRST QUARTER ENDED SEPT 25 IN THE YEAREARLIER PERIOD THE COMPANY REPORTED NET INCOME OF 42 MILLION OR 14 CENTS A SHARE WESTERN DIGITAL IRVINE CALIF ATTRIBUTED THE IMPROVEMENT TO SIGNIFICANTLY LOWER COSTS AND TO A MAJOR PRODUCT SHIFT TO ITS HIGHERMARGIN CAVIAR DISK DRIVES IN AUGUST WESTERN DIGITAL AND ROCKWELL ANNOUNCED A 115 MILLION SALE AGREEMENT FOR THE CHIP PLANT NEITHER SAID WHY THE DEAL COLLAPSED THE ANNOUNCEMENTS WERE MADE NEAR THE CLOSE OF MARKETS YESTERDAY IN COMPOSITE BIG BOARD TRADING WESTERN DIGITAL CLOSED AT 5625 UP 625 CENTS 9310130025 931013 BUSINESS BRIEF HILTON HOTELS CORP NET INCOME DECREASED 10 DURING THE THIRD QUARTER HILTON HOTELS CORP REPORTED A 10 DECLINE IN THIRDQUARTER NET INCOME TO 205 MILLION OR 43 CENTS A SHARE FROM 228 MILLION OR 48 CENTS A SHARE THE HOTEL AND CASINO COMPANY IN BEVERLY HILLS CALIF BLAMED THE DECLINE ON HIGHER TAXES AND INTEREST EXPENSE FOREIGN CURRENCY LOSSES AND A 29 MILLION WRITEOFF RELATED TO THE DEMOLITION OF CERTAIN FACILITIES AT A LAS VEGAS PROPERTY THAT IS UNDERGOING RENOVATION AND EXPANSION INVESTORS APPARENTLY WERE DISAPPOINTED BY THE NEWS PUSHING SHARES DOWN 1625 TO 4850 A SHARE IN NEW YORK STOCK EXCHANGE LATE TRADING OPERATING PROFIT ROSE 24 TO 661 MILLION FROM 531 MILLION REFLECTING STRENGTHENING IN THE COMPANY'S GAMBLING AND HOTEL BUSINESSES A FULL QUARTER OF EARNINGS FROM THE RENO HILTON ACQUIRED AUG 1 1992 ALSO CONTRIBUTED TO THE INCREASE REVENUE ROSE 7 TO 3467 MILLION FROM 323 MILLION 9310130024 931013 BUSINESS BRIEF DEAN WITTER DISCOVER & CO ALLIANCE BEGUN WITH ALLSTATE TO SELL ANNUITIES INSURANCE DEAN WITTER DISCOVER & CO SAID IT HAS BEGUN AN ALLIANCE WITH ALLSTATE CORP TO MARKET AND DISTRIBUTE PROPRIETARY ANNUITY AND LIFEINSURANCE PRODUCTS THROUGH DEAN WITTER ACCOUNT EXECUTIVES IN A NEWS RELEASE DEAN WITTER SAID ALLSTATE ENTERED THE ALLIANCE THROUGH ITS ALLSTATE LIFE INSURANCE CO AND NORTHBROOK LIFE INSURANCE CO UNITS DEAN WITTER AND ALLSTATE WILL SPLIT THE PROFITS EVENLY A DEAN WITTER SPOKESMAN SAID HE ADDED THAT DEAN WITTER ALREADY HAS SOLD 1 BILLION IN ANNUITIES THIS YEAR THIS IS THE THIRD ALLIANCE DEAN WITTER HAS STRUCK DURING THE PAST 18 MONTHS IT ENTERED INTO AN ALLIANCE WITH TRUST CO OF THE WEST TO RUN A FAMILY OF FUNDS FOLLOWED BY AN ALLIANCE WITH NATIONSBANK CORP PUTTING MORE THAN 400 BROKERS IN NATIONSBANK OFFICES TO SELL DEAN WITTER FUNDS 9310130023 931013 BUSINESS BRIEF ARMCO STEEL CO CONCERN TO RAISE BASE PRICES BY ABOUT 35 NEXT YEAR ARMCO STEEL CO FOLLOWING THE LEAD OF SEVERAL OTHER STEELMAKERS SAID IT WILL RAISE BASE PRICES BY ABOUT 35 ON JAN 2 THE LIMITED PARTNERSHIP BETWEEN ARMCO INC OF PARSIPPANY NJ AND KAWASAKI STEEL CORP OF TOKYO SAID IT WILL BOOST PRICES BY 15 A TON ON HOTROLLED AND MOST COATED SHEET PRODUCTS AND BY 20 A TON ON COLDROLLED SHEET PRODUCTS BASE PRICES ON HOTROLLED STEEL WILL INCREASE TO 430 A TON WHILE COLDROLLED STEEL WILL BE 590 A TON SEVERAL OTHER DOMESTIC STEELMAKERS CITING STRONG DEMAND AND LEAN INVENTORIES LAST WEEK ANNOUNCED PLANS TO BOOST PRICES ON THEIR BIGGESTSELLING PRODUCTS JAN 2 ARMCO SAID IT WILL RAISE PRICES OF ALL ITS SHEET PRODUCTS BY 10 A TON EFFECTIVE WITH JULY 3 1994 SHIPMENTS HOTDIP ALUMINIZED SHEET PRICES WHICH THE COMPANY RAISED BY 15 A TON ON OCT 3 ARE NOT AFFECTED BY THE JAN 2 INCREASE 9310130022 931013 BUSINESS BRIEF TELCO SYSTEMS INC FOURTHQUARTER LOSS POSTED AFTER YEARAGO NET INCOME TELCO SYSTEMS INC CITING A 136 MILLION CHARGE FOR LAYOFFS AND FACILITIES CLOSURES REPORTED A FISCAL FOURTHQUARTER LOSS COMPARED WITH NET INCOME OF 13 MILLION OR 14 CENTS A SHARE A YEAR EARLIER SALES SKIDDED 14 THE NORWOOD MASS COMPANY SAID FOR THE QUARTER ENDED AUG 29 TELCO POSTED A LOSS OF 155 MILLION OR 165 A SHARE AFTER THE CHARGES RELATED TO ITS FIBEROPTIC EQUIPMENT DIVISION SALES FOR THE QUARTER WERE 21 MILLION COMPARED WITH 246 MILLION THE YEAR BEFORE THE COMPANY REDUCED ITS STAFF IN FIBER OPTICS BY 75 TO ABOUT 350 AND CLOSED FACILITIES YESTERDAY IN NATIONAL TRADING ON THE OVERTHECOUNTER MARKET TELCO COMMON CLOSED AT 9375 OFF 125 CENTS ON VOLUME OF 365100 SHARES MORE THAN FOUR TIMES ITS DAILY AVERAGE VOLUME FOR FISCAL 1993 TELCO REPORTED A LOSS OF 163 MILLION OR 175 A SHARE ON SALES OF 83 MILLION IN FISCAL 1992 NET WAS 59 MILLION OR 62 CENTS A SHARE ON SALES OF 967 MILLION 9310130021 931013 BUSINESS BRIEF PERRY DRUG STORES INC CHARGE IS EXPECTED TOTALING 21 MILLION TO 25 MILLION PERRY DRUG STORES INC SAID IT WILL POST AN ESTIMATED 21 MILLION TO 25 MILLION NONCASH CHARGE FOR THE YEAR ENDING OCT 31 THE CHARGE PRIMARILY REFLECTING AN INVENTORY ADJUSTMENT WILL RESULT IN AN OPERATING LOSS RANGING BETWEEN 14 MILLION AND 18 MILLION FOR THE ENTIRE YEAR FOR ALL OF FISCAL YEAR 1992 THE PONTIAC MICH COMPANY REPORTED NET INCOME OF 21 MILLION OR 18 CENTS A SHARE ON SALES OF 167 MILLION PERRY SAID IT BEGAN LAST YEAR TO INSTALL A NEW INVENTORYCONTROL SYSTEM THAT PROVIDES THE COMPANY WITH MORE ACCURATE DAILY INFORMATION ON SALES AND PROFIT MARGINS AS MORE PERRY STORES CONVERTED TO THE NEW SYSTEM THIS YEAR IT APPEARED THAT ESTIMATED CARRYFORWARD MARGINS MAY NOT HAVE BEEN REFLECTING ACTUAL PROFIT MARGINS THUS THE NEED FOR THE CHARGE THE COMPANY SAID BUT PERRY SAID IT WON'T HAVE TO INCREASE ITS BORROWING NEEDS BEYOND NORMAL LEVELS BECAUSE OF THE INVENTORY ADJUSTMENT 9310130020 931013 BUSINESS BRIEF FOURTH FINANCIAL CORP BANK EXECUTES AGREEMENT TO ACQUIRE GREAT SOUTHERN FOURTH FINANCIAL CORP SAID IT EXECUTED A DEFINITIVE AGREEMENT FOR ITS PREVIOUSLY ANNOUNCED ACQUISITION OF GREAT SOUTHERN BANCORP INC FOR ABOUT 84 MILLION IN STOCK THE BANKING COMPANIES SAID THEY EXPECT THE ACQUISITION TO CLOSE IN THE FIRST QUARTER OF 1994 THE AGREEMENT REMAINS SUBJECT TO REGULATORY APPROVAL AND A VOTE OF GREAT SOUTHERN SHAREHOLDERS UNDER THE AGREEMENT FOURTH FINANCIAL OF WICHITA KAN WILL EXCHANGE 28 MILLION SHARES OF ITS COMMON FOR ALL OF GREAT SOUTHERN'S STOCK EACH SHARE OF SPRINGFIELD MOBASED GREAT SOUTHERN WILL BE EXCHANGED FOR 16394 SHARES OF FOURTH FINANCIAL IN OVERTHECOUNTER TRADING FOURTH FINANCIAL SHARES CLOSED UNCHANGED AT 3025 WHILE SHARES OF GREAT SOUTHERN CLIMBED 350 OR 81 TO 4675 9310130018 931013 BUSINESS BRIEF HEALTHTRUSTTHE HOSPITAL CO HOSPITAL OPERATOR AGREES WITH ESTIMATES OF ANALYSTS HEALTHTRUSTTHE HOSPITAL CO NASHVILLE TENN IS VERY COMFORTABLE WITH ANALYSTS' ESTIMATES THAT PERSHARE OPERATING PROFIT FOR THE YEAR ENDED AUG 31 WAS BETWEEN 164 AND 170 R CLAYTON MCWHORTER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY WHICH OPERATES MORE THAN 80 HOSPITALS IN 21 STATES REPORTED OPERATING PROFIT OF 932 MILLION OR 90 CENTS A SHARE FOR FISCAL 1992 A ONETIME CHARGE OF 1364 MILLION RESULTED IN A NET LOSS OF 431 MILLION OR 88 CENTS A SHARE REVENUE TOTALED 227 BILLION HEALTHTRUST EXPECTS TO REPORT FIGURES FOR THE QUARTER AND THE YEAR NEXT WEDNESDAY WE DON'T SEE ANY SURPRISES MR MCWHORTER SAID MR MCWHORTER ATTRIBUTED THE IMPROVED PERFORMANCE TO SEVERAL FACTORS INCLUDING RETIREMENT OF DEBT THE ADDITION OF MORE THAN 100 SPECIALTY SERVICES SUCH AS HOME CARE AND GERIATRIC CARE TO ITS EXISTING HOSPITALS AND HEALTHTRUST'S EFFORTS TO FORM ALLIANCES WITH OTHER HOSPITALS AND HEALTHCARE PROVIDERS 9310130017 931013 FOURTH AND GOAL FOOTBALL AT ANY COST ONE CITY'S MAD CHASE FOR AN NFL FRANCHISE JACKSONVILLE FLA PROMISES ENTHUSIASM TAX DOLLARS DO ECONOMICS COMPUTE RENOVATING THE GATOR BOWL BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL JACKSONVILLE FLA LATE LAST AUGUST THE EXECUTIVE OFFICES OF THE FLORIDA TIMESUNION NEWSPAPER WERE TRANSFORMED INTO AN EMERGENCY COMMAND CENTER DANIEL W CONNELL JR FORSOOK HIS OFFICE AT FIRST UNION NATIONAL BANK OF FLORIDA WHERE HE IS AN EXECUTIVE VICE PRESIDENT TO REPORT TO THE NEWSPAPER AT 730 EACH MORNING ADAM HERBERT CAME IN NEARLY EVERY DAY EVEN THOUGH FALL REGISTRATION WAS GEARING UP AT THE UNIVERSITY OF NORTH FLORIDA OF WHICH HE IS THE PRESIDENT CARL N CANNON THE NEWSPAPER'S PUBLISHER ABANDONED HIS NORMAL DUTIES I DID NO NEWSPAPER WORK HE SAYS TOGETHER THEY FORMED A TRIUMVIRATE THAT MARSHALLED AN ARMY OF CIVIC LEADERS CHIEF EXECUTIVES ACCOUNTANTS ATTORNEYS ARCHITECTS CONTRACTORS AND DOCTORS ALL TOLD SOME 500 PEOPLE RUSHED TO HELP ONLY ONE GOAL COULD PULL THIS COMMUNITY TOGETHER SO QUICKLY THE PROSPECT OF LANDING A NATIONAL FOOTBALL LEAGUE EXPANSION FRANCHISE I THINK THEY WERE WILLING TO PURSUE THAT DREAM AT ANY COST SAYS CITY COUNCIL MEMBER HARRY REAGAN WITH THE NFL SET TO PICK TWO CITIES THIS MONTH JACKSONVILLE HAS UNITED AS NEVER BEFORE DURING THEIR 10DAY BLITZ BUSINESS LEADERS OPERATING OUT OF THE NEWSPAPER OFFICE SOLD 10300 SEASON TICKETS FOR A TEAM THAT DID NOT YET EXIST WELL ABOVE THE 9000TICKET LEVEL THEY WANTED TO REACH TO DISPLAY COMMUNITY SUPPORT TO NFL TEAM OWNERS WHO WILL PICK THE EXPANSION SITES JACKSONVILLE HAS BEEN PURSUING THIS PRIZE WITH RARE SINGLEMINDEDNESS FOR 14 YEARS EVERY CITIZEN IS AFFECTED CITY OFFICIALS HAVE PLEDGED TO SUPPORT THE LOCAL OWNERSHIP GROUP WITH AN INFUSION OF TAXPAYERS' MONEY A COMMITMENT THAT STARTED AT 60 MILLION AND EVENTUALLY DOUBLED THE CITY HAS EVEN AGREED TO PROVIDE FURNITURE FOR THE TEAM'S OFFICE WE'RE JUST DESPERATE FOR THIS SAYS JOHN DRAPER ONE OF FOUR OUT OF 19 JACKSONVILLE COUNCIL MEMBERS WHO OPPOSE THE CITY'S STEEP FINANCIAL INVOLVEMENT MOST PEOPLE HERE BELIEVE THAT CAPTURING AN NFL TEAM WOULD BE JACKSONVILLE'S CHANCE TO SHED ITS IMAGE AS A SMALL BACKWATER CITY IT'S GOING TO TAKE US INTO THE 21ST CENTURY SAYS THOMAS F PETWAY III A MEMBER OF THE GROUP THAT WOULD OWN THE TEAM IT'S GOING TO MAKE US A FIRSTTIER CITY HE AND OTHERS CONTEND THAT AN NFL TEAM WOULD PUMP 130 MILLION A YEAR INTO THE LOCAL ECONOMY AND PROVIDE 3000 JOBS THIS IS THE SINGLELARGEST ECONOMICDEVELOPMENT IMPACT PROJECT WE'VE EVER LOOKED AT SAYS MR CONNELL THE FIRST UNION BANKER OTHER CITIES ACROSS THE NATION MAKE SIMILAR PROMISES AS THEY SPEND MILLIONS IN PUBLIC FUNDS TO LAND PROFESSIONAL TEAMS FOUR OTHER CITIES BALTIMORE CHARLOTTE NC MEMPHIS TENN AND ST LOUIS REMAIN IN THE HUNT FOR TWO NFL EXPANSION FRANCHISES BIDS IN EACH CALL FOR SPENDING MILLIONS OF DOLLARS OF TAXPAYER MONEY WITH ST LOUIS AT THE TOP WITH A 258 MILLION DOMED STADIUM UNDER CONSTRUCTION AS PART OF A BID TO LURE THE NEW ENGLAND PATRIOTS TO CONNECTICUT FROM MASSACHUSETTS THE STATE LEGISLATURE APPROVED SPENDING 252 MILLION FOR A NEW STADIUM IN DOWNTOWN HARTFORD AND THE CITY AND STATE GOVERNMENTS OF NEW YORK ARE DISCUSSING FLOATING A 1 BILLION BOND ISSUE IN PART TO PAY FOR A NEW HOME FOR BASEBALL'S YANKEES BECAUSE PRINCIPAL OWNER GEORGE STEINBRENNER IS TALKING ABOUT TAKING THE TEAM ACROSS THE HUDSON RIVER TO NEW JERSEY BUT PRO SPORTS TEAMS OFTEN ARE MORE AN ECONOMIC BOONDOGGLE THAN BOON CRITICS SAY THE BASIC RULE YOU ALWAYS START WITH IS THAT BUILDING A STADIUM FOR ECONOMIC DEVELOPMENT MAKES NO SENSE AT ALL SAYS MARK ROSENTRAUB AN ASSOCIATE DEAN AT INDIANA UNIVERSITY WHO HAS STUDIED THE IMPACT OF PROFESSIONAL SPORTS ON CITIES ECONOMIC IMPACT RARELY TRANSLATES INTO ECONOMIC GROWTH SEVERAL EXPERTS SAY LARGELY BECAUSE THE MONEY THAT IS SAID TO FLOW INTO LOCAL BUSINESSES WAS ALREADY IN THE NEIGHBORHOOD IT IS MONEY THAT OTHERWISE WOULD HAVE BEEN SPENT AT THE MOVIES OR THE BOWLING ALLEY AND FEW FANS ACTUALLY TRAVEL FROM FAR ENOUGH AWAY TO STAY IN HOTELS OR DINE AT PRICEY RESTAURANTS IF THEY LIVE WITHIN 100 MILES WHAT'LL THEY DO THEY'RE GOING TO GO TO WENDY'S SAYS DR ROSENTRAUB THAT'S NOT ECONOMIC GROWTH AND MOST OF THE OFFFIELD JOBS CREATED BY A PROFESSIONAL SPORTS TEAM ARE LOWSKILL LOWWAGE AND SEASONAL MOREOVER CITIES INTENT ON LANDING A TEAM OFTEN OVERLOOK PROJECTS WITH REAL GROWTH POTENTIAL IN JACKSONVILLE FOR INSTANCE THE PORT WHERE A STARTING LONGSHOREMAN MAKES 19 AN HOUR IS BADLY IN NEED OF EXPANSION BUT AS THE NFL BID HEATED UP CITY OFFICIALS POSTPONED ANY SPENDING ON THE PORT VOTING TO SPEND MONEY INSTEAD ON RENOVATING THE GATOR BOWL THE CITY'S FOOTBALL STADIUM MONEY SPENT ON STADIUMS IS MONEY NOT AVAILABLE FOR OTHER INFRASTRUCTURE PROJECTS AND MOST US CITIES ARE IN A STATE OF CRISIS REGARDING THE CONDITION OF ROADS WATER AND SEWER MAINS BRIDGES AND TUNNELS AND SUBWAYS WRITES CHARLES C EUCHNER A POLITICAL SCIENTIST AT COLLEGE OF THE HOLY CROSS AND THE AUTHOR OF PLAYING THE FIELD A RECENT BOOK ABOUT THE RACE BY CITIES TO OBTAIN SPORTS TEAMS BUT CITIES NEED HEROES TOO AND SO THE CIVIC SCRIMMAGE CONTINUES YOU'RE SOMEHOW NOT REAL IN AMERICAN SOCIETY UNLESS YOU HAVE SPORTS DR ROSENTRAUB SAYS ROBERT A BAADE AN ECONOMIST AT LAKE FOREST COLLEGE IN LAKE FOREST ILL SAYS IT'S A CULTURAL THING IT'S A QUALITY OF LIFE ISSUE BUT TO PASS IT OFF AS AN ECONOMIC PANACEA IS REALLY TO MISLEAD THOSE WHO ARE GOING TO BE FINANCING THE THING JACKSONVILLE'S NFL CRUSADE BEGAN ON A MUGGY AUGUST NIGHT IN 1979 WHEN 50000 PEOPLE CROWDED INTO THE GATOR BOWL TO WATCH A HELICOPTER DESCEND FROM THE DARK SKY AS THE MULTITUDE CHANTED WE WANT THE COLTS ROBERT IRSAY THE BALTIMORE COLTS' OWNER STEPPED ONTO THE FIELD WITH THENMAYOR JAKE GODBOLD WHO LATER CALLED THE NIGHT THE SINGLE MOST IMPORTANT EVENT IN THE MODERN HISTORY OF JACKSONVILLE MR IRSAY WANTED TO MOVE HIS TEAM OUT OF BALTIMORE AND HE WAS LOOKING FOR A NEW HOMETOWN EVEN THOUGH HE DIDN'T PICK JACKSONVILLE HE ENDED UP MOVING THE COLTS TO INDIANAPOLIS IN 1984 THE NIGHT IGNITED A FLAME FOR FANS IN JACKSONVILLE MR CONNELL SAYS SO THE CITY CONTINUED ITS NFL QUEST AT LEAST FOUR FLIRTATIONS WITH TEAM OWNERS FOLLOWED EACH TIME ACCORDING TO LOCAL LORE THE CITY NEARLY NABBED A TEAM BUT MISSED AT THE LAST MINUTE JACKSONVILLE SHOWED ITS WILLINGNESS TO THROW TAXPAYER DOLLARS BEHIND AN NFL BID WHEN THE HOUSTON OILERS WERE DANGLED IN FRONT OF CITY LEADERS IN 1987 AN INCENTIVE PACKAGE WAS PIECED TOGETHER THAT INCLUDED A 10YEAR GUARANTEED SELLOUT OF EVERY GAME FINANCED BY CITYBACKED BONDS WITH THE NFL TALKING EXPANSION IN 1989 THE LOCAL CHAMBER OF COMMERCE ASKED THE PRIVATE SECTOR TO STEP FORWARD AND MR PETWAY WAS A LOGICAL CHOICE TO HEAD THE EFFORT AN ENTREPRENEUR WHO OWNS INSURANCE COMPANIES REALESTATE CONCERNS AUTOMOBILE DEALERSHIPS AND A CONSULTING FIRM MR PETWAY HAD PLAYED CRUCIAL ROLES IN JACKSONVILLE GROUPS RANGING FROM THE CHAMBER TO THE ROTARY CLUB TO THE TRANSPORTATION AUTHORITY A BACKSLAPPING SALESMAN WHO FAVORS SHIRTSLEEVES AND NO TIE HE KNEW HOW TO PLAY TO THE CITY'S LONGING TO LEAP INTO THE NATION'S BIG LEAGUES AS HE MOUNTED HIS CAMPAIGN IN 1990 MR PETWAY PROMISED JACKSONVILLE THAT A FOOTBALL TEAM WOULD MAKE THIS A BETTER PLACE A BETTER PLACE TO LIVE AND A BETTER PLACE TO WORK HE PIECED TOGETHER A POTENTIAL OWNERSHIP GROUP CALLED TOUCHDOWN JACKSONVILLE LTD A PARTNERSHIP OF SIX MOSTLY LOCAL BUSINESSMEN THAT INCLUDED JEB BUSH SON OF THE FORMER PRESIDENT THE DEEPEST POCKETS BELONG TO J WAYNE WEAVER A SHOE MAGNATE WITH AN ESTIMATED NET WORTH OF 250 MILLION NOT A LOCAL STRICTLY SPEAKING BUT A PARTTIME RESIDENT OF NEARBY AMELIA ISLAND AND THE BROTHER OF ONE OF MR PETWAY'S CLOSEST FRIENDS TOUCHDOWN JACKSONVILLE BUILT LOCAL SUPPORT FOR ITS BID LARGELY ON A UNIVERSITY OF NORTH FLORIDA STUDY THAT CONCLUDED A TEAM WOULD PUMP 130 MILLION A YEAR INTO THE ECONOMY AND CREATE 3000 JOBS THE STUDY IS BASED ON A MULTIPLIER EFFECT AN ASSUMPTION THAT THE IMPACT OF A DOLLAR SPENT IN A LOCAL ECONOMY GROWS AS THE PERSON WHO RECEIVES IT PAYS FOR OTHER GOODS AND SERVICES CITIES FREQUENTLY USE THIS KIND OF MULTIPLICATION FORMULA SUCH AS 25 TIMES A PROJECT'S SPENDING TO PROVE THE IMPORTANCE OF PRO SPORTS TEAMS SOME ECONOMISTS DOUBT THAT ANY SUCH EFFECT OCCURS HOWEVER THE MULTIPLIER ARGUMENT WOULD BE GOOD IF WE LIVED IN THE AGE OF THE WALLED CITY SAYS DR EUCHNER LOCAL ECONOMIES ARE VERY LEAKY MONEY THAT YOU SPEND ON A TICKET OR ON A CONCESSION OR SOMETHING LIKE THAT DOESN'T JUST CIRCULATE THROUGHOUT THE CITY OFTEN IT GETS OUT OF THE CITY ALMOST INSTANTLY TAKE FOR EXAMPLE PLAYER SALARIES ONE OF THE BIGGEST EXPENSES FOR A PRO FOOTBALL TEAM JACKSONVILLE'S STUDY SAYS PLAYERS WILL ESTABLISH PERMANENT RESIDENCES AND BECOME ACTIVE PARTICIPANTS IN THE LOCAL ECONOMY IN REALITY FEW PLAYERS EVER MAKE THEIR YEARROUND HOMES WHERE THE TEAM RESIDES SO THAT MONEY EXITS THE LOCAL ECONOMY THE ECONOMIST WHO PREPARED THE STUDY AT THE UNIVERSITY OF NORTH FLORIDA JOSEPH M PERRY DEFENDS ITS CONCLUSIONS HE SAYS THE STUDY USES US COMMERCE DEPARTMENT MULTIPLIERS THAT ARE PREPARED SPECIFICALLY FOR THE AREA'S ECONOMY AND THAT TAKE LEAKAGE INTO ACCOUNT MOREOVER BY EXCLUDING MONEY THAT PLAYERS MAKE FROM ENDORSEMENTS AND THE LIKE THE STUDY ESSENTIALLY COMPENSATES FOR THE FACT THAT FEW PLAYERS WOULD LIVE ALL YEAR IN JACKSONVILLE DR PERRY SAYS ADDING I THINK WE'RE ON PRETTY SOLID GROUND HERE AT ANY RATE JACKSONVILLE'S MUNICIPAL GOVERNMENT FOUND THE STUDY SUFFICIENTLY CONVINCING TO PRIME THE PUMP WITH PUBLIC FUNDS THE COUNCIL VOTED TO ENTER INTO A FORMAL LEASE AGREEMENT WITH TOUCHDOWN JACKSONVILLE UNDER TERMS OF THE AGREEMENT TOUCHDOWN JACKSONVILLE WOULD OWN AND OPERATE A PROFESSIONAL FOOTBALL TEAM AND THE CITY WOULD SPEND 60 MILLION TO FIX UP THE GATOR BOWL THE GATOR BOWL DID IN FACT NEED RENOVATION SO MUCH SO THAT JACKSONVILLE WAS IN DANGER OF LOSING WHAT FOOTBALL EXCITEMENT IT HAD THE ANNUAL GRUDGE MATCH BETWEEN THE UNIVERSITY OF FLORIDA GATORS AND THE UNIVERSITY OF GEORGIA BULLDOGS WHEN THE TWO UNIVERSITIES LAST YEAR THREATENED TO MOVE THEIR GAME SOMEPLACE LESS DILAPIDATED MAYOR ED AUSTIN PUSHED THROUGH A MEASURE TO START WORK THE MAYOR HAD AN EASY TIME SELLING THIS MEASURE TO VOTERS BECAUSE AS HE EXPLAINED IT IT WOULD END UP COSTING TAXPAYERS NOTHING ONCE JACKSONVILLE LANDED A PROFESSIONAL FOOTBALL TEAM THE THEORY WENT LIKE THIS JACKSONVILLE WOULD SPEND 49 MILLION RIGHT AWAY ON REPAIRS TO THE GATOR BOWL FOR THE GEORGIAFLORIDA GAME THAT AMOUNT WOULD BE COVERED BY THE 60 MILLION RENOVATION ALREADY APPROVED BY THE CITY COUNCIL AS PART OF THE LEASE WITH TOUCHDOWN JACKSONVILLE AND MONEY TO PAY OFF THE 60 MILLION WOULD COME FROM NEW SOURCES THAT WOULD ACCRUE WITH THE ARRIVAL OF A TEAM AN INCREASE IN THE HOTEL BED TAX A TICKET SURCHARGE A PIECE OF THE PARKING FEE AND A SALES TAX REFUND FROM THE STATE THE PLAN WAS POPULAR WITH JACKSONVILLE'S PUBLIC BUT PRIVATELY THE MAYOR AND CERTAIN COUNCIL MEMBERS KNEW IT WOULD NEVER WORK IN APRIL NFL INSPECTORS HAD COME TO JACKSONVILLE AND TOLD TOUCHDOWN JACKSONVILLE THAT THE GATOR BOWL WOULD REQUIRE MORE THAN 60 MILLION OF REPAIRS TO BE BROUGHT UP TO PRO FOOTBALL STANDARDS TOUCHDOWN JACKSONVILLE TOLD THIS TO THE MAYOR WHO TOLD THE COUNCIL LEADERSHIP BUT NOT THE WHOLE COUNCIL ON MAY 11 THE COUNCIL APPROVED THE 49 MILLION GEORGIAFLORIDA RENOVATION PLAN WITHIN 48 HOURS TOUCHDOWN JACKSONVILLE HAD BACKED OUT OF THE 60 MILLION AGREEMENT LEAVING THE CITY TO PAY THE 49 MILLION OUT OF ITS GENERAL FUND MAYOR AUSTIN DEFENDS HIS DECISION NOT TO PUBLICIZE BROADLY THE NFL INSPECTORS' FINDING ON THE GROUNDS THAT IT MADE IT A LOT EASIER MADE IT MORE PALATABLE FOR THE COUNCIL TO PASS THE GEORGIAFLORIDA GAME RENOVATION PACKAGE BUT SEVERAL COUNCIL MEMBERS OBJECT TO HAVING BEEN KEPT IN THE DARK IT'S DISGUSTING SAID MR REAGAN WITHIN DAYS TOUCHDOWN JACKSONVILLE'S ESTIMATES OF THE COST OF THE TOTAL RENOVATION PACKAGE SOARED FIRST TO 80 MILLION THEN TO 100 MILLION THE FIGURES STARTED COMING IN DAILY LIKE LOTTO NUMBERS SAYS MIKE HOGAN A COUNCIL MEMBER PRESSURE FROM THE COMMUNITY WAS MOUNTING THE TIMESUNION IN ONE OF SEVERAL PRONFL EDITORIALS WROTE JACKSONVILLE IS ON THE CUSP OF ONE OF ITS GREATEST OPPORTUNITIES THE CITY IS FORTUNATE TO HAVE MEMBERS OF AN OWNERSHIP GROUP WILLING TO WORK TIRELESSLY AND RISK THEIR OWN MONEY TOUCHDOWN JACKSONVILLE ASKED FOR MORE IT DROPPED FROM ITS LEASE AGREEMENT A PROVISION TO GIVE THE CITY 35 OF CONCESSION REVENUE AND PUSHED THE START OF RENT PAYMENTS TO THE SIXTH YEAR FROM THE FIRST IT ASKED THE CITY TO PAY FOR A PRACTICE FACILITY AND FOR RENOVATION OF THE AREA AROUND THE GATOR BOWL IN LATE JUNE MAYOR AUSTIN BALKED AT TOUCHDOWN JACKSONVILLE'S ESCALATING DEMANDS AND NEGOTIATIONS STALLED TOUCHDOWN JACKSONVILLE ISSUED A NEWS RELEASE THAT READ IN PART TODAY IS A SAD DAY FOR OUR CITY TODAY IS THE DAY THAT MAYOR ED AUSTIN KILLED OUR CITY'S NFL DREAM WITHIN DAYS THE MAYOR AND TOUCHDOWN JACKSONVILLE WERE BACK AT THE BARGAINING TABLE ON JULY 1 MAYOR AUSTIN ANNOUNCED A NEW LEASE IN WHICH THE CITY WOULD AGREE TO INVEST 112 MILLION IN RENOVATING THE STADIUM THE 49 MILLION ALREADY COMING FROM THE GENERAL FUND AND 63 MILLION FINANCED BY CITYBACKED BONDS WHICH WOULD BE PAID BACK BY THE BED TAX AND OTHER FOOTBALLRELATED REVENUE BUT THE MAYOR AND TOUCHDOWN JACKSONVILLE NEVER COULD AGREE ON WHERE SPENDING SHOULD STOP THE MAYOR WANTED A LEASE THAT CAPPED THE TAXPAYERS' CONTRIBUTION AT 112 MILLION THE FOOTBALL ENTREPRENEURS WANTED NO SUCH CAP THE FULL CITY COUNCIL MET ON JULY 21 TO CONSIDER THE LEASE THE MAYOR PROPOSED HIS SPENDING CAP TOUCHDOWN JACKSONVILLE FORMALLY REJECTED IT CITY COUNCIL MEMBERS WATCHING THEIR FOOTBALL DREAM EVAPORATE BEFORE THEIR EYES FRANTICALLY STRUCTURED A PLAN TO THROW SO MUCH MONEY INTO THE PROJECT THAT A CAP SIMPLY WOULD NOT BE NECESSARY THEY PROPOSED TO SET ASIDE AS MUCH AS 160 MILLION FOR STADIUM RENOVATIONS PARTLY BY DIVERTING TAX MONEY THAT HAD ALREADY BEEN APPROVED FOR SUCH THINGS AS A NEW LIBRARY HOSPITAL CONSTRUCTION AND A HOMELESS SHELTER BUT COUNCIL MEMBERS COULD NOT AGREE THE PLAN WAS TABLED LATER THAT DAY TOUCHDOWN JACKSONVILLE HELD A NEWS CONFERENCE TO SAY IT WAS CALLING IT QUITS THIS TIME IT WAS THE NFL THAT RESUSCITATED THE NEGOTIATIONS A LEAGUE SPOKESMAN SAYS THIS WAS BECAUSE JACKSONVILLE HAD WORKED SO HARD THAT IT WOULD BE A SHAME TO LET ITS EFFORTS FADE AWAY SKEPTICS POINT OUT THAT THE GREATER THE NUMBER OF CITIES IN CONTENTION FOR AN NFL FRANCHISE THE MORE CONCESSIONS THE LEAGUE CAN EXTRACT YOU CAN'T BLAME A BUSINESS FOR WANTING TO GET THE BEST DEAL IT CAN SAYS DR EUCHNER BUT YOU CAN BLAME CITIES FOR BEING SUCH SUCKERS ON JULY 27 THREE NFL OFFICIALS INCLUDING COMMISSIONER PAUL TAGLIABUE HAD LUNCH WITH MR WEAVER THE SHOE MAGNATE URGING HIM TO GET JACKSONVILLE BACK INTO THE RACE MR TAGLIABUE CALLED MAYOR AUSTIN WITH A SIMILAR MESSAGE LATER THAT DAY DON DAVIS THE CITY COUNCIL PRESIDENT HEARD OF THESE CONVERSATIONS AND WAS ENCOURAGED REALIZING THAT THE BUSINESS COMMUNITY WOULD BE NEEDED TO REVIVE A BID DROPPED IN UNANNOUNCED TO SEE MR CANNON AT THE TIMESUNION WHO IS A FRIEND OF PEOPLE IN BOTH CAMPS CARL YOU'RE THE GUY WHO HAS TO BE THE POINT MAN MR DAVIS TOLD HIM DURING THE WEEK OF AUG 15 NEGOTIATIONS STARTED WITH MR CANNON AS THE GOBETWEEN MAKING PHONE CALLS TO THE MAYOR'S STAFF AND TO MR WEAVER WHO WAS HIKING IN THE ROCKY MOUNTAINS THREE MAJOR POINTS OF CONTENTION REMAINED A SPENDING CAP MOVING THE 1994 GEORGIAFLORIDA GAME WHILE RENOVATIONS CONTINUED AND WHETHER THE CITY OR TOUCHDOWN JACKSONVILLE WOULD HEAD THE CONSTRUCTION PROJECT CHARLES W ARNOLD JR THE CITY'S GENERAL COUNSEL WHO HAD BEEN CRITICAL OF THE CITY'S EXPOSURE IN EARLIER VERSIONS OF THE LEASE WAS LEFT OUT OF THE NEGOTIATIONS MR ARNOLD SAID HE DOES NOT BELIEVE HE WAS PURPOSELY KEPT OUT OF THE DISCUSSIONS WITHIN A WEEK A LEASE WAS COMPLETED WITH THE CITY GIVING IN TO VIRTUALLY ALL OF TOUCHDOWN JACKSONVILLE'S DEMANDS THE NEW AGREEMENT RAISES THE CITY'S FINANCIAL COMMITMENT TO 121 MILLION FROM 112 MILLION IF RENOVATION COSTS RISE ABOVE THAT AMOUNT THE CITY WILL LEND TOUCHDOWN JACKSONVILLE THE MONEY WHICH IT THEN WILL PAY BACK OVER 30 YEARS AT THE TAXEXEMPT BOND RATE THE CITY AUDITOR SAYS JACKSONVILLE MIGHT HAVE TO BORROW SOME OF THAT MONEY AT A HIGHER RATE MEANING IT WOULD PAY OUT MORE THAN IT TAKES IN AND JACKSONVILLE WILL GIVE AWAY THE 1994 GEORGIAFLORIDA GAME AN EVENT IT HAD FOUGHT HARD TO KEEP THE CITY ALSO AGREED TO PAY FOR TOUCHDOWN JACKSONVILLE'S OFFICE FURNITURE AND PRACTICE EQUIPMENT IT'S JUST AN INCREDIBLE SWEETHEART DEAL SAID MR HOGAN A COUNCIL MEMBER THE TEAM OWNERS FOR THEIR PART WOULD PAY THE 140 MILLION FRANCHISE FEE ALONG WITH AN ESTIMATED 75 MILLION FOR STARTUP COSTS SALARIES AND OPERATIONS FOR THE FIRST YEAR MAYOR AUSTIN DEFENDS THE AGREEMENT THE BOTTOM LINE ON THIS THING IS THAT WE CAME OUT OF THESE NEGOTIATIONS WITH A LEASE THAT THE PEOPLE OF JACKSONVILLE FEEL VERY GOOD ABOUT AND I THINK THAT THE LEAGUE OUGHT TO FEEL VERY GOOD ABOUT IT HE SAYS WE HAVE A GOOD CONTRACT THAT THE CITY CAN AFFORD THAT WE CAN LIVE WITH ONCE THE TERMS WERE SET MR WEAVER WAS DETERMINED TO KEEP THEM JUST AS THEY WERE IF THE LEASE CHANGES TONIGHT THAT'S IT MR WEAVER TOLD MR DAVIS ON AUG 24 THE DAY THE CITY COUNCIL WAS SET TO VOTE ON THE ISSUE AT A SPECIAL MEETING THAT EVENING MR DAVIS TOOK THE FLOOR AND MADE AN IMPASSIONED SPEECH EXTOLLING THE BENEFITS OF A TEAM FOR THE CITY AND HE WARNED HIS COLLEAGUES AGAINST OFFERING ANY AMENDMENTS TO THE LEASE YOU'LL DRIVE THE LAST NAIL IN THE COFFIN HE SAID MR DAVIS RETURNED TO HIS SEAT AND ASKED IF THERE WAS ANY DISCUSSION MR REAGAN WAITED WITH FIVE AMENDMENTS INCLUDING ONE THAT WOULD HAVE PUT AN ABSOLUTE CAP ON THE CITY'S FINANCIAL INVOLVEMENT HANDS SHOT UP MR DAVIS CALLED ON COUNCIL MEMBER ERIC SMITH WHO MADE A MOTION TO END ANY DISCUSSION MR SMITH'S MOTION PASSED 135 THEN THE LEASE WAS APPROVED 144 ONE MEMBER WAS ABSENT THAT DAY MEANWHILE THE CRUCIAL TICKET DRIVE WAS IN FULL SWING BOOSTERS BLANKETED RADIO AND TV TALK SHOWS MR CANNON DONATED 100000 OF ADVERTISING IN THE TIMESUNION FIRST UNION WITH BACKING FROM THE CITY'S OTHER BANKS UNVEILED A NOINTEREST NOFEE TICKET PURCHASE PACKAGE THAT BROUGHT THE DOWN PAYMENT PRICE TO 250 FROM 750 THE BUSINESS COMMUNITY'S PITCH THAT THE TICKETS WERE INVESTMENTS IN JACKSONVILLE'S FUTURE SUCCEEDED MORE THAN 10000 TICKETS WERE SOLD IN 10 DAYS BUT SOME IN THIS CITY STILL WORRY THAT IN ITS ZEAL TO LAND A TEAM JACKSONVILLE ACTUALLY HAS RISKED MORTGAGING ITS FUTURE I THINK I'M A FIFTH OR SIXTH GENERATION JACKSONVILLIAN SAYS MR HOGAN THE CITY COUNCIL MEMBER I'VE GOT GREAT PRIDE IN MY CITY AND I DON'T HAVE A PROBLEM WITH AN NFL TEAM IT'S JUST AT WHAT COST THE FACTS ALL WENT OUT THE WINDOW 9310130016 931013 BUSINESS BRIEF H&R BLOCK INC DEFINITIVE ACCORD IS REACHED TO ACQUIRE MECA SOFTWARE H&R BLOCK INC KANSAS CITY MO SAID IT ENTERED INTO A DEFINITIVE AGREEMENT TO ACQUIRE MECA SOFTWARE INC FOR ABOUT 322 MILLION BLOCK AN INCOME TAX SERVICE COMPANY SAID ONE OF ITS SUBSIDIARIES WILL MAKE A TENDER OFFER OF 6625 A SHARE FOR ALL MECA SHARES OUTSTANDING MECA BASED IN FAIRFIELD CONN PUBLISHES AND MARKETS SOFTWARE FOR PERSONAL FINANCES AND INCOME TAXES IN ADDITION BLOCK SAID IT WILL ACQUIRE CERTAIN SOFTWARE RIGHTS AMONG OTHER THINGS BRINGING THE TOTAL PURCHASE PRICE TO 442 MILLION IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY MECA JUMPED 1125 OR 21 TO 650 9310130015 931013 CLINTON MULLS PLAN TO AID THOSE DISLOCATED BY NAFTA WASHINGTON THE CLINTON ADMINISTRATION IS CONSIDERING A 100 MILLION WORKERASSISTANCE PROGRAM FOR EMPLOYEES WHO LOSE THEIR JOBS AS A RESULT OF THE NORTH AMERICAN FREE TRADE AGREEMENT THE PROGRAM WOULD RUN COUNTER TO THE WHITE HOUSE'S PLAN TO CONSOLIDATE THE MYRIAD JOB TRAINING PROGRAMS NOW NUMBERED BY THE GENERAL ACCOUNTING OFFICE AT MORE THAN 150 THE ADMINISTRATION WANTS A COMPREHENSIVE PROGRAM FOR JOB TRAINING LABOR SECRETARY ROBERT REICH SAID IN A SPEECH AT THE NATIONAL PRESS CLUB BUT IN THE MEANTIME WE NEED A BRIDGE FOR WORKERS DISLOCATED BY THE ACCORD THE MOVE WOULD BE A NOD TO POLITICAL REALITY DEMOCRATS ON CAPITOL HILL HAVE TOLD THE ADMINISTRATION IN RECENT WEEKS THAT A SPECIAL TARGETED JOBASSISTANCE PLAN IS A MUST TO GET NAFTA THROUGH CONGRESS 9310130014 931013 US FLAGSHIP TOYOTA LINE TO BE BUILT IN KENTUCKY GEORGETOWN KY SEEKING RELIEF FROM THE STRONG YEN TOYOTA MOTOR CORP SAID IT WILL BUILD ITS US FLAGSHIP MODEL AT ITS ASSEMBLY PLANT HERE STARTING NEXT FALL TOYOTA SAID THE CAR NAMED THE AVALON WILL BE BUILT EXCLUSIVELY IN GEORGETOWN FOR THE US MARKET ONLY THE AUTO MAKER SAID IT ISN'T SURE YET EXACTLY HOW MANY OF THE CARS IT WILL PRODUCE ANNUALLY THE CAR WILL BE BUILT IN TOYOTA'S NEW 800 MILLION EXPANSION FACILITY ONCE THE AVALON GOES INTO PRODUCTION TWOTHIRDS OF THE VEHICLES TOYOTA SELLS IN THE US WILL BE BUILT IN NORTH AMERICA THE AUTO MAKER SAID TOYOTA'S PLANTS IN GEORGETOWN KY FREMONT CALIF AND CAMBRIDGE ONTARIO BUILD 46 OF THE MODELS IT SELLS IN THE US THE AVALON IS THE REPLACEMENT FOR THE CRESSIDA NO LONGER SOLD IN THE US THE ALLNEW CAR IS BIGGER THAN THE CAMRY MIDSIZED SEDAN AND IS EXPECTED TO ACHIEVE MODEST SALES VOLUME J DAVIS ILLINGWORTH GROUP VICE PRESIDENT OF THE TOYOTA DIVISION SAID IN A STATEMENT SEPARATELY TOYOTA SHOWED THE NEWS MEDIA ITS NEW CAMRY COUPE WHICH WAS DEVELOPED IN THE US TOYOTA SAID THE COUPE WILL BE BUILT IN GEORGETOWN AND EXPORTED TO JAPAN TOYOTA EXPECTS TO EXPORT 6000 COUPES ANNUALLY TO JAPAN WHERE THE CAR WILL BE CALLED THE SCEPTER 9310130012 931013 OSAKA EXCHANGE TO ADOPT WEIGHTED NIKKEI INDEX SPECIAL TO THE WALL STREET JOURNAL TOKYO TOP OFFICIALS OF THE OSAKA SECURITIES EXCHANGE HAVE AGREED TO ADOPT THE NIKKEI STOCK INDEX 300 OF FIRST SECTION SHARES ON THE TOKYO STOCK EXCHANGE FOR USE IN FUTURES AND OPTIONS TRADING A BOURSE SPOKESMAN SAID THE OSAKA EXCHANGE IS AIMING TO INTRODUCE THE NEW DERIVATIVES IN EARLY 1994 AS LONG AS SYSTEMS FOR CALCULATING THE MARKET GAUGE ARE FUNCTIONAL THE SPOKESMAN SAID ON OCT 8 THE NIHON KEIZAI SHIMBUN UNVEILED THE NEW WEIGHTED INDEX WHICH WIDELY IS SEEN BY STOCK MARKET PARTICIPANTS AS THE SUCCESSOR TO THE SIMPLEAVERAGE NIKKEI INDEX OF 225 SELECTED ISSUES THE NEWSPAPER PUBLISHER NOW CALCULATES THE NIKKEI 300 ONCE A DAY AFTER THE CLOSE OF THE STOCK MARKET AND IS WORKING ON REALTIME REPORTING A NIHON KEIZAI SHIMBUN OFFICIAL SAID THE JAPANESE MINISTRY OF FINANCE ALSO SAID IT WILL EASE RESTRICTIONS ON TRADING HOURS AND COLLATERAL REQUIREMENTS FOR THE NIKKEI 300 FUTURES AND OPTIONS ONCE THEY ARE LISTED THE NIKKEI 300 WAS DESIGNED TO REFLECT THE PERFORMANCE OF 70 OF THE STOCKS ON THE FIRST SECTION OF THE TOKYO STOCK EXCHANGE WHILE THE NIKKEI 225 IS TO REPRESENT THE PERFORMANCE OF 50 ON TUESDAY THE NIKKEI 300 ENDED 048 POINT HIGHER AT 29937 POINTS THE BASE OF 100 POINTS WAS SET AT OCT 1 1982 9310130011 931013 BELL ATLANTIC CORP IS EXPECTED TO BUY TCI IN MOVE VALUED AT OVER 16 BILLION ANNOUNCEMENT SEEN TODAY PURCHASE WOULD LINK BABY BELL CABLE POWER BY WALL STREET JOURNAL REPORTERS JOHNNIE L ROBERTS RANDALL SMITH LAURA LANDRO AND DENNIS KNEALE NEW YORK BELL ATLANTIC CORP IS EXPECTED TO ANNOUNCE TODAY THAT IT PLANS TO ACQUIRE THE NATION'S LARGEST AND MOST POWERFUL CABLE OPERATOR TELECOMMUNICATIONS INC FOR STOCK THAT VALUES TCI AT MORE THAN 16 BILLION THE PACT ONE KNOWLEDGEABLE EXECUTIVE SAID VALUES TCI SHARES AT ROUGHLY 35 APIECE AND ALSO WOULD INCLUDE TAKING ON TCI'S 103 BILLION IN DEBT THE DEAL WOULD JOIN THE BABY BELL WITH WHAT IS ARGUABLY THE MOST POWERFUL FORCE IN TELEVISION IN PURSUING THE INTERACTIVE VIDEO FUTURE TCI SERVES ONE IN EVERY FOUR CABLE HOMES OWNS CABLE SYSTEMS IN 48 STATES AND HOLDS STAKES IN MANY OF THE MOST POPULAR CHANNELS THE PROPOSED TAKEOVER WHICH BELL ATLANTIC WAS EXPECTED TO ANNOUNCE AT A NEWS CONFERENCE HERE AND IN WASHINGTON THIS MORNING ADDS A STUNNING NEW TWIST TO THE BYZANTINE TAKEOVER BATTLE FOR MOVIE AND PUBLISHING GIANT PARAMOUNT COMMUNICATIONS INC TCI IS A PRIME MOVER BEHIND QVC NETWORK INC'S HOSTILE 95 BILLION BID FOR PARAMOUNT SEEKING TO DERAIL THE LOWER OFFER OF VIACOM INC WITH BELL ATLANTIC'S DEEP POCKETS BEHIND TCI THE REGIONAL BELL COMPANY SERVES SIX MIDATLANTIC STATES AND WASHINGTON AND CHURNS ANNUAL CASH FLOW OF 5 BILLION A YEAR THE BIG CABLE OPERATOR COULD EASILY AFFORD TO HELP QVC BID HIGHER FOR PARAMOUNT TCI HAS ALREADY ANNOUNCED PLANS TO REACQUIRE ITS SPINOFF LIBERTY MEDIA CORP WHICH IN TURN OWNS 222 OF QVC THE BELL ATLANTICTCI UNION WOULD BE ONE OF THE LARGEST MERGERS IN US CORPORATE HISTORY AND THE LARGEST BY FAR IN A SPATE OF RAPIDFIRE TRANSACTIONS IN THE PAST YEAR IN WHICH CASHRICH REGIONAL BELL COMPANIES HAVE INVESTED IN CABLE COMPANIES AND OTHER PLAYERS THE DEAL WOULD ALMOST OVERNIGHT VAULT BELL ATLANTIC INTO THE UPPERMOST RANKS OF THE WORLD'S COMMUNICATIONS GIANTS ALONGSIDE THE LIKES OF AMERICAN TELEPHONE & TELEGRAPH CO TIME WARNER INC AND NEWS CORP BELL ATLANTIC HAS BEEN THE MOST AGGRESSIVE OF THE BABY BELLS IN CHARTING A MOVE INTO INTERACTIVE TELEVISION AND ALREADY HAS PLANS TO WIRE UP 110000 HOMES IN SEVERAL MARKETS IT ALONE AMONG THE SEVEN REGIONAL BELL COMPANIES HAS WON THE RIGHT IN FEDERAL COURT TO OFFER VIDEO SERVICES TO THE 11 MILLION HOMES IN ITS OWN LOCAL MARKETS TCI'S CHIEF EXECUTIVE OFFICER JOHN C MALONE BOTH WIDELY RESPECTED AND FEARED IN THE CABLE BUSINESS WOULD BECOME COCHAIRMAN OF THE COMBINED ENTITY AND PRESUMABLY WOULD REMAIN IN CONTROL OF TCI OPERATIONS IN THE JOUSTING FOR PARAMOUNT HE HAS BECOME THE TARGET OF A LAWSUIT BY VIACOM WHICH HAS ADDED FUEL TO LONGSTANDING CHARGES THAT MR MALONE IS BENT ON MONOPOLIZING THE CABLE INDUSTRY BUT WITH TCI AS A SUBSIDIARY OF A GIANT REGIONAL PHONE COMPANY WITH ANNUAL REVENUE OF MORE THAN 126 BILLION MR MALONE MAY HOPE TO DEFLECT SUCH CRITICISM THE OTHER COCHAIRMAN WOULD BE BELL ATLANTIC CHAIRMAN RAYMOND SMITH OFFICIALS AT BELL ATLANTIC AND TCI DECLINED TO COMMENT IT REMAINS TO BE SEEN HOW MR MALONE LONG THE FINANCIAL ALCHEMIST AND GRAND STRATEGIST ATOP TCI WILL ADJUST TO DEALING WITH NEW OWNERS BUT MR MALONE PERSONALLY WILL END UP WITH 1 BILLION OF BELL ATLANTIC STOCK MAKING HIM AMONG THE LARGEST BELL ATLANTIC SHAREHOLDERS UNDER THE DEAL HE HAS TOLD SOME EXECUTIVES PRIVATELY HE WILL RECEIVE A 10 PREMIUM OVER THE BASIC OFFER BECAUSE HE OWNS SUPERVOTING TCI SHARES TCI'S FOUNDER AND CHAIRMAN ROBERT MAGNESS WOULD OWN 16 BILLION OF BELL ATLANTIC SHARES AND TCI WOULD HAVE FIVE SEATS ON BELL ATLANTIC'S 15MEMBER BOARD THE PROPOSED BELL ATLANTICTCI MERGER WHICH IS LIKELY TO REQUIRE THE APPROVAL OF PLATOONS OF REGULATORS AND SHAREHOLDERS WOULD BE AMONG THE LARGEST US CORPORATE ACQUISITIONS EVER THE LARGEST PREVIOUS DEAL WAS THE 1989 BUYOUT OF RJR NABISCO WHICH TOTALED 30 BILLION INCLUDING 5 BILLION OF DEBT THE TERMS OF THE BELL ATLANTICTCI MERGER WILL BE COMPLEX AND DIFFICULT TO VALUE BUT THE TOTAL PRICE TAG COULD APPROACH 33 BILLION WHEN COUNTING THE STOCK AND DEBT OF BOTH TCI AND LIBERTY MEDIA WHICH TCI WOULD ACQUIRE BEFORE MERGING INTO BELL ATLANTIC IN JOINING WITH BELL ATLANTIC MR MALONE CLEARLY HAS SET HIS SIGHTS BEYOND THE PARAMOUNT FIGHT WHILE EXPLORATORY TALKS STARTED MONTHS AGO HE BEGAN NEGOTIATING IN DETAIL WITH BELL ATLANTIC ONLY RECENTLY WITHOUT TELLING HIS PARTNERS IN THE PARAMOUNT BID COMCAST CORP AND QVC EXECUTIVES CLOSE TO THE TALKS SAID HIS PARTNERS DIDN'T FIND OUT ABOUT THE BELL ATLANTIC MERGER UNTIL MONDAY NIGHT ONE PERSON CLOSE TO MR MALONE SAID HE PURSUED THE MERGER BECAUSE HE COULDN'T SEE HOW TCI WOULD BE ABLE TO MOVE INTO THE INTERACTIVE FUTURE HE HAS HAILED WITHOUT A MAJOR TELEPHONE COMPANY BEHIND IT AS BELL ATLANTIC CHARTED PLANS FOR THE INTERACTIVE FUTURE EXECUTIVES INSIDE THE COMPANY DEBATED WHETHER THEY EVEN NEEDED TO OWN THE PROGRAMMING THEY WOULD DELIVER BUT BELL ATLANTIC'S MR SMITH HAS APPARENTLY DECIDED THEY DO AND THE COMBINED COMPANY WOULD BE AN IMMEDIATE FORCE IN PROGRAMMING ESPECIALLY IF THE QVC TEAM WINS THE BIDDING FOR PARAMOUNT TCI OWNS CABLE SYSTEMS IN EVERY STATE REACHING MORE THAN 10 MILLION HOMES AND IT OWNS 23 OF TURNER BROADCASTING SYSTEM INC WHICH IN TURN OWNS CNN TNT THE CARTOON NETWORK AND THE TBS SUPERSTATION THROUGH LIBERTY TCI WILL END UP OWNING STAKES IT HAD PREVIOUSLY HELD IN BLACK ENTERTAINMENT TELEVISION THE FAMILY CHANNEL THE ENCORE MOVIE CHANNEL COURT TV AND REGIONAL SPORTS NETWORKS IF QVC WINS PARAMOUNT BELL ATLANTIC WOULD GET READY ACCESS TO SUCH PRIZED PROGRAMMING AS CHEERS RERUNS ALL STAR TREK EPISODES THE INDIANA JONES MOVIE SERIES AND HUNDREDS OF OTHER PROPERTIES IF THE DEAL GOES THROUGH TCI MAY YET HAVE TO SELL OFF CABLE SYSTEMS THAT DO BUSINESS WHERE BELL ATLANTIC OFFERS PHONE SERVICE NEW JERSEY PENNSYLVANIA VIRGINIA WEST VIRGINIA MARYLAND DELAWARE AND WASHINGTON DC BECAUSE OF FEDERAL LAW YESTERDAY TCI'S CLASS A SHARES FELL 25 CENTS OR 09 TO CLOSE AT 28375 IN NATIONAL OVERTHECOUNTER TRADING WHILE BELL ATLANTIC'S STOCK ROSE 625 CENTS OR 11 TO CLOSE AT 60 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AFTER SPENDING MOST OF THE PAST DECADE FIGHTING TOOTH AND NAIL CABLE COMPANIES AND PHONE COMPANIES ARE JOINING UP TO DELIVER AN ARRAY OF INTERACTIVE TV AND TELEPHONE SERVICES SO VAST THAT IT ISN'T YET CLEAR AMERICANS ARE READY FOR IT LAST WEEK NYNEX CORP AGREED TO PUMP 12 BILLION INTO VIACOM IN BACKING THE LATTER'S BID FOR PARAMOUNT EARLIER THIS YEAR U S WEST INC PAID 25 BILLION FOR A 25 STAKE IN TIME WARNER INC'S ENTERTAINMENT AND CABLE OPERATIONS SOUTHWESTERN BELL CORP HAS AGREED TO ACQUIRE CABLE SYSTEMS OWNED BY HAUSER COMMUNICATIONS INC IN A 650 MILLION DEAL BELLSOUTH CORP TODAY IS EXPECTED TO ANNOUNCE A CABLE STAKE OF ITS OWN A 225 STAKE IN TEXAS OPERATOR PRIME MANAGEMENT CO THE REGIONAL BELL PHONE COMPANIES ARE SCRAMBLING FOR NEW INVESTMENTS AS RAPID TECHNOLOGICAL CHANGE THREATENS THEIR MONOPOLY ON LOCAL PHONE SERVICE THAT IS IN PART BECAUSE OF LOOMING COMPETITION FROM CABLE RIVALS WORKING TO SEND PHONE CALLS DOWN THE SAME WIRES THAT NOW CARRY TV PROGRAMMING AND ON WIRELESS PERSONAL COMMUNICATIONS SERVICES NETWORKS BUT AS THE BABY BELLS TAKE AIM AT TELEVISION THEY WOULD HAVE TO SPEND BY SOME ESTIMATES UPWARD OF 200 BILLION COMBINED TO UPGRADE THEIR SYSTEMS TO VIDEOQUALITY LINES THAT COULD REACH INTO THE NATION'S 942 MILLION TV HOMES CABLE ALREADY CAN REACH 95 OF HOMES THOUGH ONLY 62 SUBSCRIBE AND ITS BROADBAND LINES ARE CAPABLE OF CARRYING A MUCH HEAVIER LOAD OF VIDEO VOICE AND OTHER DIGITAL DATA BUT CABLE COMPANIES TOO ARE UNDER PRESSURE AND HAVE BECOME INCREASINGLY OPEN TO OVERTURES FROM THE BELL COMPANIES CABLE COMPANIES LACK THE HIGHSPEED SWITCHING TECHNOLOGY THAT PHONE COMPANIES HAVE PERFECTED AND THE EXPERTISE TO BUILD AND MANAGE COMPLEX NETWORKS CABLE CONCERNS THEMSELVES WOULD NEED TO SPEND BILLIONS TO TRANSFORM THEIR ONEWAY VIDEO SYSTEMS INTO TWOWAY NETWORKS THAT CAN SEND AND RECEIVE ALL FORMS OF DIGITAL INFORMATION YET THEY DON'T HAVE THE ACCESS TO CHEAP DEBT OR THE HUGE CASH FLOW THAT THE BABY BELLS ENJOY BY VIRTUE OF THEIR LOCAL MONOPOLIES THESE DAUNTING OBSTACLES ARE BRINGING CABLE AND PHONE COMPANIES TOGETHER IN THE UNITED KINGDOM JOINTLY OWNED VENTURES OFFER CONSUMERS CABLE AND PHONE SERVICE ON THE SAME LINES AND HAVE FOUND A SURPRISINGLY HIGH RATE OF TAKERS AMONG THE PARTNERS TCI WITH U S WEST IT WASN'T IMMEDIATELY CLEAR WHETHER THE BELL ATLANTIC DEAL WOULD HURT THE EFFORTS OF QVC CHAIRMAN BARRY DILLER TO RAISE ROUGHLY 1 BILLION FROM BELL ATLANTIC RIVAL BELLSOUTH FOR THE PARAMOUNT BID THOSE TALKS CONTINUE BUT BELLSOUTH MAY TAKE UNKINDLY TO THE IDEA OF TEAMING UP WITH QVC WHEN THAT COMPANY'S PARTOWNER WILL BE A BELL ATLANTICOWNED TCI 9310130009 931013 BUSINESS BRIEF CYPRESS SEMICONDUCTOR CORP CHIP MAKER'S PROFIT JUMPED DURING THE THIRD QUARTER CYPRESS SEMICONDUCTOR CORP CONTINUING A REBOUND REPORTED THAT THIRDQUARTER NET INCOME ROSE SHARPLY TO 61 MILLION OR 16 CENTS A SHARE THE EARNINGS WERE TOWARD THE HIGH END OF ANALYSTS' ESTIMATES THE SAN JOSE CALIF CHIP MAKER CITED IMPROVED PROFIT MARGINS LOWER COSTS AND HEALTHY SALES REVENUE FOR THE QUARTER ROSE 18 TO 77 MILLION FROM 653 MILLION A YEAR EARLIER IN THE THIRD QUARTER LAST YEAR CYPRESS EARNED 472000 OR A PENNY A SHARE CYPRESS STUMBLED IN 1992 UNDER ATTACK FROM AGGRESSIVE COMPETITORS SUCH AS MOTOROLA INC MICRON TECHNOLOGY INC AND FUJITSU LTD CYPRESS HAD A LOSS OF 21 MILLION 56 CENTS A SHARE LAST YEAR THE COMPANY APPARENTLY HAS TURNED THINGS AROUND BY CUTTING COSTS AND RELOCATING MANUFACTURING CAPACITY TO THAILAND AMONG OTHER STEPS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY CYPRESS STOCK WAS QUOTED AT 14 A SHARE DOWN 25 CENTS 9310130008 931013 BUSINESS BRIEF US HEALTHCARE INC PROTEST OF RATE DECREASE BY NEW YORK AGENCY FILED US HEALTHCARE INC BLUE BELL PA SAID IT FILED A PETITION WITH NEW YORK STATE SUPREME COURT PROTESTING A STATE INSURANCE REGULATORY RULING THAT CUT ITS RATES FOR THE YEAR THAT BEGAN OCT 1 THE HEALTHMAINTENANCE ORGANIZATION HAD FILED FOR A 62 INCREASE THE STATE RESPONDED WITH A 39 DECREASE SAYING THE COMPANY'S STRONG PROFIT PERFORMANCE DIDN'T MERIT A RATE INCREASE US HEALTHCARE SAID THE RATE DECREASE IS UNFAIR BECAUSE IT PUNISHES THE COMPANY FOR PERFORMING EFFICIENTLY AND SAVING MONEY THE RATE ACTION SENDS THE WRONG MESSAGE HIGHER COSTS WILL BE REWARDED FOR HIGHER RATES WHEREAS DEMONSTRATED EFFICIENCIES WILL BE PENALIZED A US HEALTHCARE SPOKESMAN SAID IN NATIONAL OVERTHECOUNTER TRADING US HEALTHCARE GAINED 1125 OR 26 TO 45 A SHARE 9310130006 931013 WHAT'S NEWS WORLDWIDE CLINTON HALTED A US MISSION TO HAITI AND PRESSED FOR IMMEDIATE SANCTIONS THE PRESIDENT ABRUPTLY WITHDREW A SHIPLOAD OF 200 TROOPS FROM HAITIAN WATERS ONE DAY AFTER MILITARYBACKED PROTESTERS PRE VENTED THE VESSEL FROM DOCKING IN PORTAUPRINCE BUT HE WARNED DEFIANT MILITARY AND POLICE LEADERS THERE THAT HE WAS DEAD SERIOUS ABOUT THE RETURN OF OUSTED PRESIDENT ARISTIDE CLINTON COUPLED HIS ACTION WITH A REQUEST FOR THE REIMPOSITION OF UN SANCTIONS AGAINST HAITI TO PENALIZE THOSE WHO ARE TRYING TO BLOCK ARISTIDE'S RETURN SECRETARY OF STATE CHRISTOPHER ACCUSED HAITIAN ARMY CHIEF CEDRAS AND POLICE COMMANDER FRANCOIS OF RENEGING ON PLEDGES FOR A RETURN TO DEMOCRACY A GERMAN COURT REMOVED THE LAST LEGAL HURDLE TO A EUROPEAN UNION TREATY GERMANY'S HIGHEST COURT DECLARED THAT THE MAASTRICHT TREATY IS COMPATIBLE WITH THE GERMAN CONSTITUTION PAVING THE WAY FOR THE PACT TO COME INTO FORCE ACROSS THE EUROPEAN COMMUNITY ON NOV 1 THE EIGHTJUDGE GERMAN PANEL REJECTED ARGUMENTS THAT THE EC TREATY WAS UNDEMOCRATIC OR THAT IT ROBBED GERMANY OF BASIC SOVEREIGN RIGHTS THE JUDGES RULED THAT GERMANY THE ONLY EC MEMBER THAT HASN'T RATIFIED THE TREATY WAS FREE TO DO SO THE RULING WAS GREETED WITH RELIEF IN MOST EUROPEAN CAPITALS BECAUSE IT MARKED THE END OF A DIVISIVE DEBATE THAT HAS DRAGGED ON FOR TWO YEARS PRESIDENT CLINTON SOUGHT TO LINK HIS POPULAR HEALTHCARE INITIATIVE TO HIS CONTROVERSIAL PUSH FOR A FREETRADE PACT AS HE LISTED HIS PRIORITIES IN A SPEECH AT THE UNIVERSITY OF NORTH CAROLINA HE SAID HIS ADMINISTRATION WANTS TO PROVIDE HEALTH AND JOB SECURITY TO AMERICANS A US SPECIAL ENVOY MET WITH REPRESENTATIVES OF SOMALI CLAN LEADER AIDID IN MOGADISHU SEEKING FREEDOM FOR A CAPTURED AMERICAN PILOT US FIGHTER PLANES BUZZED THE CAPITAL FOR A SECOND DAY AND THERE WERE NEW REPORTS OF SOMALIS FIRING ON RELIEF WORKERS AND PEACEKEEPERS TWO WHITE EXPOLICEMEN WERE SENTENCED TO LENGTHY PRISON TERMS IN DETROIT FOR THEIR CONVICTIONS IN LAST YEAR'S BEATING DEATH OF A BLACK MOTORIST MALICE GREEN SEPARATELY IN CALIFORNIA TWO POLICE OFFICERS REPORTED TO A FEDERAL PRISON TO BEGIN SERVING 2YEAR SENTENCES IN THE BEATING OF RODNEY KING DELIBERATIONS PLUNGED INTO DISARRAY IN THE REGINALD DENNY BEATING TRIAL IN LOS ANGELES AS THE JUDGE DISMISSED THE SECOND JUROR IN TWO DAYS AND ORDERED THE JURY TO START OVER THE TWO DEFENDANTS ARE ACCUSED OF BEATING A TRUCK DRIVER AT THE START OF LAST YEAR'S RIOTS TWO US ECONOMISTS WON THE NOBEL MEMORIAL PRIZE IN ECONOMIC SCIENCE ROBERT W FOGEL OF THE UNIVERSITY OF CHICAGO AND DOUGLASS C NORTH OF WASHINGTON UNIVERSITY OF ST LOUIS WERE HONORED AS LEADING FIGURES WITHIN THE FIELD OF NEW ECONOMIC HISTORY THE PENTAGON WILL ASK THE SUPREME COURT TO DELAY ENFORCEMENT OF A FEDERAL COURT ORDER THAT BANNED DISCRIMINATION AGAINST HOMOSEXUALS IN THE MILITARY A SPOKESWOMAN SAID IN THE MEANTIME THE PENTAGON HAS TOLD MILITARY UNITS TO SUSPEND THE BAN ON HOMOSEXUALS WHILE OFFICIALS PURSUE THE CASE THE SUPREME COURT REFUSED TO HEAR THE APPEAL OF A CIA EMPLOYEE WHO WAS FIRED FOR HIDING HIS HOMOSEXUALITY FROM THE AGENCY FOR MORE THAN FIVE YEARS THE MAN HAD ARGUED THAT THE CIA IMPROPERLY BELIEVES HOMOSEXUALS POSE A GREATER SECURITY RISK THAN HETEROSEXUALS GERMANY'S CABINET RESOLVED TO MOVE MOST OF THE GOVERNMENT FROM BONN TO BERLIN BY THE YEAR 2000 THE MOVE TO BERLIN HAS BEEN SUPPORTED BY EASTERN GERMANS WHO VIEW IT AS ONE OF THE PROMISES OF UNIFICATION BUT OPPOSED BY WESTERN GERMANS WHO SAY A STALLED ECONOMY CAN'T AFFORD THE RELOCATION COSTS YELTSIN MET WITH JAPANESE BUSINESS LEADERS IN TOKYO IN AN EFFORT TO PERSUADE THEM TO INVEST IN RUSSIA'S ECONOMY THE RUSSIAN PRESIDENT HINTED AT HANDING BACK SOME DISPUTED ISLANDS NORTH OF JAPAN AND HE ALSO APOLOGIZED FOR THE SOVIET UNION'S TREATMENT OF JAPANESE PRISONERS FROM WORLD WAR II BOSNIAN SERB FORCES POUNDED MUSLIM FRONT LINES IN AN UPSURGE OF FIGHTING AROUND SARAJEVO MEANWHILE THE UN WARNED IT WON'T BE ABLE TO MEET THE COUNTRY'S NEED FOR FOOD SUPPLIES THIS WINTER