BELL ATLANTIC PLANS TO BUY TELECOMMUNICATIONS THE NATION'S LARGEST CABLE OPERATOR FOR STOCK THAT VALUES TCI AT OVER 16 BILLION SUCH A DEAL WOULD JOIN THE BABY BELL WITH WHAT IS ARGUABLY THE MOST POWER FUL FORCE IN TV IN PURSUING THE INTERAC TIVE VIDEO FUTURE THE PLANS ADD A NEW TWIST TO THE TAKEOVER BATTLE FOR PARA MOUNT TCI IS A PRIME BACKER OF QVC'S 95 BILLION BID FOR PARAMOUNT BELLSOUTH PLANS TO ACQUIRE A 225 STAKE IN PRIME MANAGEMENT GIVING THE REGIONAL BELL COMPANY THE ENTREE IT HAS BEEN SEEKING INTO CABLE TV ONE INDIVIDUAL FAMILIAR WITH THE TRANSAC TION SAID BELLSOUTH WILL PAY LESS THAN 100 MILLION FOR ITS STAKE IN PRIME WALMART ILLEGALLY ENGAGED IN PREDATORY PRICING BY SELLING PHARMACY PRODUCTS BELOW COST A STATE COURT IN ARKANSAS RULED ANTITRUST ATTORNEYS SAID THE RULING IF IT SURVIVES ON AP PEAL COULD ENCOURAGE MORE PREDATORYPRICING SUITS IN STATE COURTS AGAINST WALMART AND OTHER BIG FIRMS MERRILL LYNCH PAINEWEBBER BEAR STEARNS AND CHARLES SCHWAB REPORTED STRONG QUARTERLY EARNINGS THAT EASILY EXCEEDED ANALYSTS' ESTIMATES SENDING BROKERAGE FIRMS' SHARES UP LABOR SECRETARY REICH IS READY TO PROPOSE RAISING THE MINIMUM WAGE TO 475 AN HOUR AN EVEN BIGGER BOOST THAN HE WAS EXPECTED TO RECOMMEND BUT HE HELD OUT THE POSSIBILITY THAT PART OF THE INCREASE COULD COME FROM HEALTHCARE BENEFITS PROVIDED BY EM PLOYERS UNDER CLINTON'S HEALTH PLAN MCDONNELL DOUGLAS SYSTEMATICALLY PASSED ON TO THE PENTAGON MILLIONS OF DOLLARS IN QUESTIONABLE CHARGES CON GRESSIONAL INVESTIGATORS ALLEGED SUNTRUST BANKS AND BARNETT BANKS REPORTED STRONG THIRDQUARTER EARNINGS REFLECTING A DECLINE IN BAD LOANS WHILE MELLON'S PROFIT FELL 27 THE WHITE HOUSE SAID IT'S AIMING TO SEND A DETAILED LEGISLATIVE HEALTHCARE PROPOSAL TO CAPITOL HILL NEXT WEEK MOVING TO COUNTER CRITICISM THAT IT LOST MOMENTUM IN PROMOTING THE PLAN TIME WARNER AND VIACOM PLAN TO TEAM UP WITH MASS TELEMARKETER CUC INTERNATIONAL TO CREATE INTERACTIVE HOMESHOPPING SERVICES FOR THEIR TRIAL CABLE TELEVISION SYSTEMS BOZELL JACOBS WON AN ADVERTISING ACCOUNT FROM CHRYSLER AND A TENTATIVE AD AGREEMENT FROM SUBARU NEWS CORP'S MURDOCH SAID HE IS LAYING THE GROUNDWORK TO MAKE SOME MAJOR INVESTMENTS OR TAKE ON PARTNERS TO FURTHER THE FIRM'S REACH IN THE GLOBAL MEDIA AND ENTERTAINMENT INDUSTRIES US CORN PRICES ARE EXPECTED TO RISE TODAY BECAUSE THE AGRICULTURE DE PARTMENT LOWERED ITS MONTHLY FORECAST OF THE APPROACHING CORN HARVEST 37 BONDS LEHMAN BROTHERS TREASURY INDEX 570288 UP 1082 COMMODITIES OIL 1871 A BARREL OFF SIX CENTS DOW JONES FUTURES INDEX 12794 UP 056 SPOT INDEX 11877 OFF 074 DOLLAR 10600 YEN OFF 025 15944 MARKS OFF 00104 9310130004 931013 HEY BIG SPENDER SPEND A LITTLE TIME AT MY SUSHI COUNTER AS JAPAN'S ECONOMY SLUMPS EXECUTIVES IN NEW YORK PULL IN THEIR CHOPSTICKS BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SINKING INTO A PLUSH SOFA AT A JAPANESE NIGHTCLUB HERE MICHIO MIKE KATOH IS TREATED LIKE THE SHOGUN OF NEW YORK WE'VE MISSED YOU MIKE COOS A JAPANESE HOSTESS SLIDING ICE CUBES INTO A CRYSTAL GLASS YOU'RE OUR FAVORITE CUSTOMER MIKE PURRS ANOTHER HOSTESS POURING SCOTCH FROM A DEWAR'S BOTTLE WITH MR KATOH'S NAME PASTED ON THE FRONT YOU SHOULD COME MORE OFTEN THE WARM WELCOME NO DOUBT IS DUE PARTLY TO MR KATOH'S WIT AND CHARM WHICH ARE CONSIDERABLE BUT THERE IS ANOTHER REASON MR KATOH AND HIS GUEST ARE THE ONLY PAYING CUSTOMERS WHEN THEY ARRIVE AT 9 PM WHEN THEY LEAVE AT 1030 HAVING SPENT ALMOST 400 THE CLUB'S THICK SOFAS STILL ARE BARELY HALF FULL THE SUN IS SETTING ON YET ANOTHER OF JAPAN'S OVERSEAS EMPIRES NIGHT LIFE BACK WHEN THEY WERE CONQUERING US MARKETS THE JAPANESE WERE AMONG THE LAST OF THE BIGTIME SPENDERS LUBRICATING BUSINESS TIES AND IMPRESSING CLIENTS BY CAROUSING AT PRICEY RESTAURANTS AND CLUBS THEIR REVELRY SPAWNED ARMIES OF NIGHTCLUB HOSTESSES AND SUSHI CHEFS NOTABLY IN NEW YORK WHERE MANY JAPANESE CONCERNS HAVE US HEADQUARTERS BUT WITH PROFITS SHRINKING AT HOME IN THE US OR BOTH JAPANESE EXECUTIVES HERE ARE PULLING IN THEIR CHOPSTICKS COMPANIES HAVE SENT OUT DIRECTIVES ALMOST EVERYONE HAS HAD HIS EXPENSE ACCOUNT CUT LAMENTS MR KATOH WHO REPRESENTS A JAPANESE ABRASIVES COMPANY IN THE US IF YOU WANT TO TAKE SOMEONE OUT TO AN EXPENSIVE PLACE YOU'D BETTER HAVE ADVANCE APPROVAL IN 1985 NEW YORK CONSUMED SO MUCH SUSHIGRADE FISH THAT A GROUP OF JAPANESE FISHERMEN BEGAN AIRFREIGHTING IN SPECIAL BREEDS LIKE HORSE MACKEREL AND SEA EEL BUT IN THE PAST YEAR VOLUMES HAVE FALLEN 31 AND THE FISHING GROUP IS CONSIDERING PULLING OUT OF THE US MARKET MORE AND MORE JAPANESE BUSINESSMEN ARE BEING SENT HOME MOANS YOSHIO HANYUDA PARTOWNER OF A SUSHI RESTAURANT NEAR THE WALDORFASTORIA HOTEL DIVING SALES HAVE FORCED HIM TO DIP INTO HIS SAVINGS AND CANCEL HEALTH INSURANCE FOR HIS FAMILY AND STAFF NIGHTCLUBS AND KARAOKE SINGALONG BARS ALSO ARE SUFFERING GAKU TAKANASHI WHO EDITS A GUIDE TO JAPANESE BARS HERE BELIEVES THAT AT LEAST 20 OF CLUBS HAVE CLOSED IN THE PAST YEAR ALONE THAT LEAVES ABOUT 40 SUCH BARS IN THE CITY AT THE MOST EXPENSIVE JAPANESE CLUBS EXPLAINS ISAMU OGASAWARA PRESIDENT OF YAMAICHI SECURITIES CO'S AMERICAN UNIT ONE PERSON COSTS 150 160 FOR JUST 40 MINUTES HE NOW GOES TO SUCH CLUBS ONLY TWO OR THREE TIMES A YEAR TO ENTERTAIN ESPECIALLY BIG CLIENTS AND HAS TOLD MOST OF HIS EMPLOYEES TO SKIP THEM ALTOGETHER NOW WE GO TO A JAPANESE RESTAURANT AND THEN FINISHED HE SAYS IF PEOPLE WANT TO TALK MORE AFTER DINNER WE GO TO AN AMERICANSTYLE BAR 20 OR 30 A PERSON SUCH FRUGALITY WOULD HAVE BEEN REGARDED AS ALMOST INSULTING DURING THE BUBBLE YEARS OF THE 1980S WHEN JAPAN'S ECONOMY BOOMED AND SO DID EXECUTIVES' EXPENSE ACCOUNTS THEN THE EXORBITANT PRICES AT JAPANESE ESTABLISHMENTS WERE PART OF THEIR APPEAL GIFTGIVING IS A CENTRAL PART OF JAPANESE BUSINESS LIFE BIG SPENDING IS A WAY OF SHOWING HOW MUCH YOUR COMPANY VALUES ANOTHER THE CLUBS ALSO OFFER TWO THINGS HIGHLY PRIZED IN TRADITIONAL JAPANESE CULTURE A SENSE OF LUXURY AND A SETTING IN WHICH WOMEN TREAT MEN WITH FORMALIZED ATTEN TIVENESS AT USAGI THE MANHATTAN CLUB THAT MR KATOH RECENTLY VISITED EACH CUSTOMER ENJOYS HIS OWN COCKTAIL WAITRESS WHO POURS HIM DRINKS AND MAKES POLITE BANTER SUCH HOSTESS CLUBS ARE SOMETIMES CALLED BOTTLE CLUBS BECAUSE REGULAR MEMBERS KEEP THEIR BOTTLES IN SPECIAL RACKS DUE TO A SHORTAGE OF JAPANESE WOMEN ABROAD MANY OF THE HOSTESSES ARE AMERICAN CHINESE OR EVEN DANISH AS AT SIMILAR BARS THE WORLD OVER THE HOSTESSES' JOB IS TO PUSH HIGHPRICED WHISKEY THE WOMEN USUALLY DRINK JUICE OR TEA WHICH ALSO ARE BILLED AT EXORBITANT RATES THE FANCIER CLUBS DISCOURAGE PHYSICAL CONTACT TO AVOID MISCONCEPTIONS THE WOMEN OFTEN WEAR HIGHNECKED DRESSES OR SUITS THERE ISN'T ANY PROSTITUTION IN THE GOOD CLUBS SAYS AN AMERICAN WHO WORKS AT A JAPANESE COMPANY BUT YOU WOULDN'T BELIEVE THE FLOOR OF HIGHSTAKES MAHJONGG YOU FIND UPSTAIRS IN SOME OF THEM IT GOES ON ALL NIGHT THESE DAYS THOUGH SUCH AFTERHOURS MERRIMENT GOES ON LESS AND LESS THE US UNIT OF MARUBENI CORP ONE OF JAPAN'S BIG FIVE TRADING COMPANIES HOPES TO SQUEEZE 10 FROM ITS US ENTERTAINMENT BUDGET THIS YEAR ANOTHER BIG TRADING CONCERN MITSUBISHI CORP RECENTLY NAMED A NEW CHIEF FOR ITS US UNIT SUCH AN EVENT ONCE WOULD HAVE BEEN CELEBRATED WITH A RECEPTION FOR 800 AT THE WALDORF THE JAPANESE BUSINESSMAN'S NEW YORK HOTEL OF CHOICE BUT MITSUBISHI INVITED ABOUT 130 PEOPLE TO A RENTED ROOM AT A JAPANESE BUSINESS CLUB INSTEAD WE USED TO DO FOUR MAJOR EVENTS A WEEK FOR JAPANESE CORPORATE ENTERTAIN MENT CLIENTS SAYS JAMES BLAUVELT THE WALDORF'S CATERING DIRECTOR NOW WE DO ONE EVERY FEW MONTHS THE FADING NIGHT LIFE CAN PROVE AN AWKWARD ADJUSTMENT FOR SOME JAPANESE A SUSHI BAR CALLED AZUMA NEAR THE TRAIN STATION IN THE WESTCHESTER COUNTY SUBURB OF HARTSDALE REPORTS WALKIN BUSINESS FROM JAPANESE EXECUTIVES WHO NO LONGER STAY IN THE CITY AT NIGHT TO ENTERTAIN CUSTOMERS ONE REASON EXECUTIVES SAY THE MEN WANT TO KILL TIME SO AS TO AVOID LOSING FACE WITH THEIR WIVES BY ARRIVING HOME TOO EARLY BUT OTHERS WELCOME THE BELTTIGHTENING SOME PEOPLE LIKE TO GO HOME AND ENJOY FAMILY LIFE SAYS MR OGASAWARA THE YAMAICHI PRESIDENT WHEN I FINISH DINNER AT A RESTAURANT I LIKE TO GO BACK HOME THAT IS GOOD FOR MY HEALTH FOR MY STOMACH ALSO SUMITAKA FUJITA A SENIOR VICE PRESIDENT AT THE US ARM OF THE TRADING COM PANY ITOCHU CORP ALSO FEELS A SENSE OF RELIEF HE SAYS THAT MANY EXECUTIVES HATED THE LATE NIGHTS AND HEAVY DRINKING BUT THEY FELT OBLIGED TO PARTICIPATE TO SHOW RESPECT FOR VALUED CUSTOMERS MANY OF WHOM ALSO DISLIKED THE NIGHT LIFE BUT FELT THEY HAD NO CHOICE THEMSELVES I AM VERY DOUBTFUL MR FUJITA SAYS THAT THE NIGHTCLUB STYLE OF ENTERTAINING WILL EVER COME BACK AGAIN EVEN KARAOKE HATERS ARE STARTING TO MAKE THEIR VOICES HEARD THE SINGING AND HEAVY DRINKING AT THESE CLUBS WERE ONCE THOUGHT TO BUILD TRUST AND OIL THE GEARS OF BUSINESS BUT SUCH BARS ALSO APPEAR TO BE LOSING JAPANESE CLIENTELE AND NOT A MOMENT TOO SOON FOR KAZUHIKO SAKAMOTO AN EXECUTIVE AT THE US UNIT OF MARUBENI CORP MR SAKAMOTO SAYS HE HATES KARAOKE BECAUSE HE ONLY KNOWS A FEW SONGS SUCH AS I LEFT MY HEART IN SAN FRANCISCO IF SOMEONE ELSE SINGS MY SONGS BEFORE ME IT IS A SERIOUS PROBLEM HE SAYS 9310130003 931013 BUSINESS BRIEF KAISER RESOURCES INC TALKS ABOUT DEVELOPMENT OF A RACING COMPLEX END KAISER RESOURCES INC RANCHO CUCAMONGA CALIF SAID IT ENDED NEGOTIATIONS TO DEVELOP A 360ACRE MOTORSPORTS RACING COMPLEX ON THE SITE OF ITS OLD STEEL MILL IN FONTANA CALIF THE COMPANY HAD SIGNED A LETTER OF INTENT IN MARCH WITH AGAJANIAN PRIME VENTURES A PRIVATE PARTNERSHIP OF AUTORACING PROMOTERS AND DEVELOPERS TO DEVELOP THE PROJECT WE'RE DISAPPOINTED THAT KAISER AND APV HAVE NOT COMPLETED THE DEFINITIVE AGREEMENT BUT WE'RE NOT GOING TO RULE ANYTHING OUT SAID DANIEL N LARSON PRESIDENT OF KAISER AN ENVIRONMENTAL RESOURCES COMPANY FOCUSED ON SOLIDWASTE MANAGEMENT WATER RESOURCES AND PROPERTY REDEVELOPMENT KAISER SAID IT WILL PURSUE ALL ALTERNATIVES FOR DEVELOPMENT OF THE SITE AND MAY STILL NEGOTIATE AGREEMENTS IN THE FUTURE TO DEVELOP A MOTORSPORTS COMPLEX 9310130002 931013 BUSINESS BRIEF CHEVRON CORP PACT WITH AZERBAIJAN COVERS STUDY OF OIL GAS RESERVES CHEVRON CORP SIGNED A PACT WITH THE FORMER SOVIET REPUBLIC OF AZERBAIJAN TO JOINTLY STUDY POTENTIAL OIL AND NATURALGAS RESERVES IN THE SOUTHERN CASPIAN SEA THE AGREEMENT WILL COVER 18 MONTHS WITH CHEVRON EXPECTING TO SPEND ABOUT 4 MILLION THE PACT ALSO CALLS FOR CHEVRON TO PROVIDE THE REPUBLIC'S STATEOWNED OIL COMPANY WITH ADVANCED PETROLEUM EXPLORATION TECHNOLOGY AND TECHNIQUES CHEVRON'S INTEREST IN THE OFFSHORE CASPIAN REGION WHICH IS SOUTH OF THE AREA CURRENTLY UNDER EXPLORATION AND DEVELOPMENT BY OTHER MAJOR OIL COMPANIES IS PART OF THE SAN FRANCISCO FIRM'S OVERALL STRATEGY TO TRY TO BECOME THE LEADING PLAYER IN EXPANDING OIL PRODUCTION IN THE FORMER SOVIET UNION CHEVRON ALREADY HAS MADE A MAJOR COMMITMENT TO THE GIANT TENGIZ FIELD IN KAZAKHSTAN AND IT IS IN THE MIDST OF PLANNING A 12 BILLION PIPELINE ACROSS SOUTHERN RUSSIA 9310130001 931013 BROKERAGE FIRMS' PROFIT KEEPS RISING FOUR BIG COMPANIES POST STRONG RESULTS MERRILL LEADS THE PACK BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BROKERAGE INDUSTRY'S NEARLY THREEYEAR PROFIT GALLOP SHOWS NO SIGNS OF SLOWING YESTERDAY FOUR BIG BROKERAGE FIRMS REPORTED STRONG QUARTERLY EARNINGS THAT EASILY EXCEEDED ANALYSTS' ESTIMATES THE EARNINGS SURPRISES AT MERRILL LYNCH & CO PAINEWEBBER GROUP INC BEAR STEARNS COS AND CHARLES SCHWAB CORP POWERED A 3 JUMP IN BROKERAGE SHARES WHICH ARE UP A DIZZYING 51 THIS YEAR MERRILL LED THE PROFIT JAUNT THE NATION'S BIGGEST BROKERAGE FIRM HAD RECORD THIRDQUARTER NET OF 3597 MILLION OR 314 A SHARE UP 57 FROM 2287 MILLION OR 204 A SHARE A YEAR EARLIER AS EXPECTED MERRILL ANNOUNCED A TWOFORONE STOCK SPLIT ITS FIRST IN 10 YEARS THE FIRM ALSO BOOSTED ITS QUARTERLY DIVIDEND BY 14 FUELING THE BROKERS' GAINS WERE RECORD UNDERWRITING ACTIVITY FEVERISH TRADING BY INDIVIDUAL INVESTORS AND SOLID SALES OF MUTUAL FUNDS WHICH GENERATE STABLE FEES THE RECURRING BUSINESS FOR MERRILL AND PAINEWEBBER THE FEES FROM ASSETS MANAGED CONTINUES TO GROW SAID JAMES HANBURY AN ANALYST AT WERTHEIM SCHRODER & CO THEY'LL HAVE THAT NEXT QUARTER NEXT YEAR FOREVER BUT SOME ANALYSTS SAID BROKERAGE STOCKS COULD SOON RUN OUT OF STEAM AS SHARE VALUATIONS APPROACH HIGHS OF MORE THAN TWICE BOOK VALUE OR ASSETS MINUS LIABILITIES IN THE PAST BROKERAGE STOCKS COULD BE VIEWED AS VERY GOOD VALUE SAID GUY MOSZKOWSKI AN ANALYST AT SANFORD C BERNSTEIN & CO NOW HE SAID WHAT'S REALLY DRIVING THEM IS CONTINUING EMERGING EARNINGS MOMENTUM OVER THE LONG HAUL HOWEVER BROKERAGE STOCKS REMAIN ATTRACTIVE ACCORDING TO SOME ANALYSTS ALISON DEANS AN ANALYST AT SMITH BARNEY SHEARSON INC SAID IN A RECENT REPORT THAT HIGHER SAVINGS RATES AND POSITIVE CLIMATES FOR UNDERWRITING AND MERGERS ACTIVITY BODE WELL FOR BROKERAGE SHARES AND WITH BROKERAGE FIRMS PAYING MORE STAFFERS IN STOCK EMPLOYEES ARE INCREASINGLY BEHAVING LIKE SHAREHOLDERS WHICH SHOULD RESULT IN HIGHER LEVELS OF PROFITABILITY SHE SAID PROFIT FAR ECLIPSED CONSENSUS FORECASTS OF 255 A SHARE THE FIRM HAD A PRETAX PROFIT MARGIN OF 243 FOR THE THIRD QUARTER AND ITS GAINS WERE BROADBASED TOTAL REVENUE FOR THE QUARTER WAS 415 BILLION UP 22 FROM 339 BILLION A YEAR AGO REVENUE FROM PRINCIPAL TRADING USING THE FIRM'S MONEY WAS UP 20 FROM COMMISSIONS UP 23 AND FROM INVESTMENT BANKING UP 24 FOR THE NINE MONTHS MERRILL HAD RECORD NET OF 105 BILLION OR 921 A SHARE UP 56 FROM THE YEAREARLIER PERIOD MERRILL'S QUARTERLY DIVIDEND WILL BE BOOSTED BY FIVE CENTS TO 40 CENTS A SHARE ON A PRESPLIT BASIS THE DIVIDEND WILL BE PAYABLE NOV 17 TO HOLDERS OF RECORD ON OCT 22 THE TWOFORONE STOCK SPLIT WILL BE IN THE FORM OF A 100 STOCK DIVIDEND PAYABLE NOV 24 TO HOLDERS OF RECORD OCT 22 SOME ANALYSTS SAY STOCK SPLITS OF SEASONED COMPANIES SUCH AS MERRILL REFLECT SPECULATIVE FEVER BUT DANIEL TULLY MERRILL'S CHAIRMAN SAID IN AN INTERVIEW WE DON'T SEE THAT AT ALL AS AN INDICATION THAT EITHER WE OR THE INDUSTRY HAS PEAKED MEANWHILE SOME ANALYSTS SUGGEST THAT MERRILL IS STASHING ASIDE INCOME IT EARNED EARLIER IN THE YEAR TO MANAGE MORE STABLE EARNINGS THIS YEAR MERRILL HAS HAD QUARTERLY NET OF 342 MILLION 345 MILLION AND 360 MILLION RESPECTIVELY MERRILL DOESN'T MANAGE EARNINGS MR TULLY SAID IN THE INTERVIEW WE DON'T DO THAT YOU'VE SEEN CYCLICALITY BEFORE IN OUR EARNINGS WHAT YOU SEE IS WHAT YOU GET THIRDQUARTER NET OF 591 MILLION OR 112 A SHARE WAS UP 14 FROM 517 MILLION OR 106 A SHARE A YEAR AGO TOPPING ANALYSTS' FORECASTS OF 94 CENTS ANNUALIZED RETURN ON EQUITY WAS 242 TOTAL REVENUE FOR THE THIRD QUARTER WAS 104 BILLION UP 25 FROM 8365 MILLION A YEAR AGO REVENUE FROM COMMISSIONS SURGED 31 FROM PRINCIPAL TRADING 11 AND FROM ASSET MANAGEMENT 22 BUT INVESTMENTBANKING REVENUE FELL 5 FROM A STRONG YEAREARLIER PERIOD FOR THE NINE MONTHS PAINEWEBBER HAD RECORD NET OF 1893 MILLION OR 354 A SHARE UP FROM THE 1718 MILLION OR 352 A SHARE A YEAR EARLIER PAINEWEBBER HAS BENEFITED FROM BROADENING ITS REVENUE STREAM AND INCREASING ITS RECURRING FEES SAID DONALD MARRON PAINEWEBBER'S CHAIRMAN WE HAVE A GAME PLAN AND IT'S WORKING EARNINGS OF 1043 MILLION OR 81 CENTS A SHARE FOR ITS FISCALFIRST QUARTER ENDED SEPT 24 SURPASSED ANALYSTS' FORECASTS OF 77 CENTS THE RESULTS WERE 66 HIGHER THAN THE 63 MILLION OR 55 CENTS A SHARE A YEAR EARLIER THOUGH THEY WERE DOWN FROM BEAR'S FISCALFOURTH QUARTER TOTAL REVENUE FOR THE QUARTER WAS 7717 MILLION UP 28 FROM A YEAR EARLIER THE RESULTS WERE DUE TO CONTRIBUTIONS FROM MOST OF OUR MAJOR BUSINESSES SAID JAMES CAYNE PRESIDENT AND CHIEF EXECUTIVE REVENUE FROM INVESTMENT BANKING SHOT UP 91 FROM PRINCIPAL TRADING 15 AND FROM COMMISSIONS 27 THIRDQUARTER NET NEARLY TRIPLED TO 222 MILLION OR 37 CENTS A SHARE THE NATION'S BIGGEST DISCOUNT BROKERAGE FIRM CITED STRONG GROWTH IN CUSTOMER ASSETS WHICH JUMPED TO A RECORD 871 BILLION AT SEPT 30 UP 50 FROM A YEAR AGO REVENUE FOR THE QUARTER ROSE 38 TO 2716 MILLION FOR THE YEAREARLIER QUARTER SCHWAB EARNED 78 MILLION OR 13 CENTS A SHARE ON REVENUE OF 1968 MILLION FOR THE NINE MONTHS SCHWAB'S PROFIT SURGED 59 TO 892 MILLION OR 150 A SHARE FROM 56 MILLION OR 95 CENTS A SHARE REVENUE FOR THE NINE MONTHS ROSE 18 TO 8062 MILLION 9310130160 930908 ENVIRONMENT POWER PLANTS IN MEXICO CAST PALL OVER NAFTA BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO'S DRIVE TO BUILD A SERIES OF POLLUTIONPRONE POWER PLANTS HAS US ENVIRONMENTAL OFFICIALS FUMING AND THREATENS TO ERODE CONGRESSIONAL SUPPORT FOR THE NORTH AMERICAN FREE TRADE AGREEMENT THE LIGHTNING ROD FOR THE DISPUTE IS THE 18 BILLION COALFIRED GENERATING PLANT CALLED CARBON II UNDER CONSTRUCTION 20 MILES SOUTH OF THE TEXAS BORDER TOWN OF EAGLE PASS WHICH IS LITTLE MORE THAN AN HOUR'S DRIVE FROM SAN ANTONIO THE FACILITY WHICH WILL USE A LOWGRADE HIGHASH COAL FROM AN ADJACENT MEXICAN STRIP MINE LACKS THE STATEOFTHEART POLLUTION CONTROL EQUIPMENT REQUIRED IN THIS COUNTRY AND US OFFICIALS PROJECT THE 1400MEGAWATT PLANT'S EMISSIONS WHEN COMBINED WITH POLLUTANTS FROM A SISTER FACILITY ALREADY OPERATING NEARBY WILL SIGNIFICANTLY DEGRADE AIR QUALITY IN PARTS OF THE SOUTHWEST ANGERED BY MEXICO'S DECISION TO STICK WITH 1970SERA CONTROL TECHNOLOGY TO HOLD DOWN COSTS ENVIRONMENTAL PROTECTION AGENCY AND INTERIOR DEPARTMENT OFFICIALS HAVE ISSUED A LITANY OF WARNINGS ABOUT THE IMPACT NORTH OF THE BORDER UNLESS EXPENSIVE SCRUBBERS ARE INSTALLED TO REMOVE SULFUR ACCORDING TO THE LATEST US PARK SERVICE ESTIMATE THE PLUME FROM CARBON II COULD REDUCE VISIBILITY BY 30 OR MORE AT BIG BEND NATIONAL PARK ABOUT 150 MILES TO THE NORTHWEST US REGULATORS SAY THAT THE ROUGHLY 230000 TONS OF SULFUR DIOXIDE THE PLANTS TOGETHER ARE EXPECTED TO SPEW OUT EACH YEAR WOULD MAKE THEM THE 10THLARGEST SOURCE OF SULFUR DIOXIDE POLLUTION ON THE CONTINENT INTERIOR OFFICIALS SAY THAT WILL CONTRIBUTE TO ACID RAIN AND EXACERBATE FORMATION OF HAZE IN PRISTINE AREAS PROBABLY DRIFTING ALL THE WAY TO ARIZONA'S GRAND CANYON THE PLAN HAS US ENVIRONMENTAL WATCHDOGS SEEING RED THIS IS A VERY BIG DEAL AND IT'S DEFINITELY COMING TO A HEAD SAYS ONE HIGHRANKING WASHINGTON ENVIRONMENTAL OFFICIAL THE FIRST OF CARBON II'S FOUR UNITS IS TO BEGIN COMMERCIAL OPERATION THIS MONTH MEXICO FOR ITS PART MAINTAINS THAT STANDARDS FOR JUDGING VISIBILITY ARE SUBJECTIVE AND IT IS PREMATURE TO SAY THAT ANY PARTICULAR SYSTEM OR DEVICE WOULD HELP ALLEVIATE POTENTIAL PROBLEMS THE PLANT MEETS OR EXCEEDS ALL APPLICABLE NATIONAL AND INTERNATIONAL POLLUTION STANDARDS ACCORDING TO THE MEXICAN EMBASSY IN WASHINGTON WHICH ALSO NOTES THAT CARBON II WILL RELEASE PROPORTIONALLY LESS POLLUTION THAN MANY OLDER US FACILITIES THE INCREASINGLY ACRIMONIOUS DEBATE CUTS TO THE HEART OF ADMINISTRATION ASSERTIONS THAT MEXICAN ENVIRONMENTAL STANDARDS GENERALLY ARE COMPARABLE TO THOSE IN THIS COUNTRY AND QUESTIONS ABOUT MEXICO'S ENVIRONMENTAL COMMITMENT ARE HEATING UP JUST AS CONGRESSIONAL OPPOSITION TO THE TRADE PACT IS BUILDING CARBON II IS A PERFECT EXAMPLE OF HOW WE COULD MAKE NAFTA WORK OR HOW IT COULD ACTUALLY END UP MAKING THINGS WORSE IN THE ENVIRONMENTAL ARENA SAYS SCOTT ROYDER A SIERRA CLUB OFFICIAL IN TEXAS WE FACE A REAL TURNING POINT SCECORP THE BIG ROSEMEAD CALIF UTILITY THAT MARKETS ITSELF AS AMONG THE NATION'S MOST ENVIRONMENTALLY SENSITIVE IS ALSO SEEING ITS GREEN IMAGE SMUDGED BY ITS ASSOCIATION WITH CARBON II SCE HOPES TO OWN 49 OF THE PLANT AND RUN IT THROUGH ITS MISSION ENERGY UNIT AS PART OF A NEW INTERNATIONAL MARKET IT WANTS TO DEVELOP BUT AFTER INVESTING MORE THAN 200 MILLION THERE FRUSTRATED SCE EXECUTIVES FIND THEMSELVES NOT ONLY EMBARRASSED AT HOME BUT CAUGHT IN A DIPLOMATIC TUGOFWAR THAT THEY FEAR COULD PROMPT THE MEXICAN GOVERNMENT TO RETAIN OWNERSHIP OF THE DISPUTED PLANT TO HELP ENHANCE ITS CREDIBILITY SCE RECENTLY HIRED PAUL VOLCKER THE FORMER HEAD OF THE FEDERAL RESERVE BOARD AS A CONSULTANT ON THE PROJECT BEYOND SCE'S QUANDARY THE DEBATE HAS BROAD IMPLICATIONS FOR USMEXICAN RELATIONS MEXICO'S AMBITIOUS LONGTERM INDUSTRIAL DEVELOPMENT BLUEPRINT WHICH ENVISIONS SEVERAL SIMILAR PLANTS THAT WOULD USE MEXICAN OIL SUPPLIES OR BURN THE DIRTY HIGHSULFUR US COAL THAT'S BEING SQUEEZED OUT OF THE DOMESTIC MARKET WORRIES SOME HIGHLEVEL EPA OFFICIALS MORE THAN 35 BILLION IN PRIVATELY FUNDED GENERATING STATIONS ARE IN THE WORKS THROUGHOUT MEXICO AND AT LEAST TWO MORE LARGE COALBURNING POWER PLANTS ALONG THE BORDER ARE BEING CONSIDERED MARY KELLY OF THE TEXAS CENTER FOR POLICY STUDIES AN AUSTINBASED THINK TANK THAT HAS ATTEMPTED TO ASSESS CARBON II'S REGIONAL IMPACT EMPHASIZES THE SERIOUS WEAKNESS OF EXISTING BINATIONAL AGREEMENTS TO CRACK DOWN ON POLLUTION SQUABBLES OVER THE PLANT ILLUSTRATE THE INADEQUATE NATURE OF THE ENFORCEMENT TOOLS WE WILL HAVE EVEN IF THE TRADE ACCORD GOES INTO EFFECT SHE ARGUES US LAWMAKERS CONSIDER CARBON II A TEST CASE OF HOW THE TWO COUNTRIES WILL HAMMER OUT CROSSBORDER POLLUTION PROBLEMS UNDER A LARGELY VOLUNTARY NAFTA SIDE AGREEMENT THAT PLEDGES COOPERATION ON POLLUTION CONTROLS REP HENRY WAXMAN A CALIFORNIA DEMOCRAT INFLUENTIAL ON ENVIRONMENTAL MATTERS SAYS THE PLANT POINTS OUT A FUNDAMENTAL FLAW IN THE WAY WE HAVE VIEWED USMEXICAN RELATIONS THE SIDE AGREEMENT APPEARS TOO WEAK TO PREVENT MEXICO FROM LURING AWAY INDUSTRIES FROM THE US WITH LAX CONTROLS REP WAXMAN ARGUES THE QUESTIONS ABOUT THE ENVIRONMENT HAVE DISTURBED ME ENOUGH THAT I DON'T THINK I CAN VOTE FOR IT AND REP CARDISS COLLINS D ILL SAYS THE PLANT HIGHLIGHTS LOW MEXICAN ENVIRONMENTAL STANDARDS THE EPA'S ANALYSIS SHE SAYS CONFIRMS THAT THE MEXICAN STANDARD FOR PARTICULATE EMISSIONS FROM POWER PLANTS IS 10 TIMES WEAKER THAN THE US STANDARD AND THE SULFURDIOXIDE LIMIT EIGHT TIMES WEAKER SINCE SCE'S MISSION ENERGY UNIT HASN'T PROPOSED TO SELL ANY OF THE ELECTRICITY TO US CUSTOMERS US REGULATORS HAVE NO BINDING ENFORCEMENT AUTHORITY OVER CARBON II'S OPERATION STILL THE WORLD BANK HAS PULLED OUT OF THE PROJECT BECAUSE OF ENVIRONMENTAL CONCERNS THREE HOUSE SUBCOMMITTEES ARE DELVING INTO THE MATTER AND JUST LAST MONTH THE STATE DEPARTMENT QUIETLY ADOPTED A HARDER LINE ACKNOWLEDGING THE SERIOUSNESS OF THE ENVIRONMENTAL CONCERNS AND INITIATING FORMAL GOVERNMENTTOGOVERNMENT DISCUSSIONS EFFORTS SO FAR HAVE BEEN PURPOSELY LOWKEY AND MEXICAN OFFICIALS IN THE PAST FEW DAYS HAVE SOUNDED SOMEWHAT MORE CONCILIATORY BUT MEXICAN OFFICIALS HAVE TOLD SCE THAT THEY HAVE MORE PRESSING POLLUTIONABATEMENT SPENDING PRIORITIES IN SMOGCHOKED MEXICO CITY THAN AT THE CARBON II PLANT WHICH HASN'T BEEN LABELED A DIRECT HEALTH HAZARD AND WHERE SCRUBBERS WOULD COST 300 MILLION OR MORE TO INSTALL THE STAKES ARE HIGH ENOUGH HOWEVER FOR ALL SIDES TO SEEK A FACESAVING COMPROMISE DESPITE CONCERNS BY SOME SUBORDINATES EPA ADMINISTRATOR CAROL BROWNER STRONGLY SUPPORTS THE TRADE PACT MEXICAN LEADERS BY THE SAME TOKEN WANT TO AVOID HASTY ACTION THAT COULD SCARE OFF OVERSEAS INVESTORS OR SIDETRACK THE INDUSTRIAL GROWTH THAT THE ELECTRIFICATION DRIVE IS TO SPEARHEAD AND THOUSANDS OF MINING JOBS DEPEND ON CARBON II THE POSITION OF SCE CHAIRMAN JOHN E BRYSON IS THAT EMISSIONS FROM CARBON II WHICH HE CALLS A MODERN RELATIVELY CLEAN FACILITY BY WORLD STANDARDS WON'T VIOLATE US VISIBILITY STANDARDS SCE CAN'T AFFORD TO PAY FOR INSTALLING SCRUBBERS MR BRYSON MAINTAINS AND ANYWAY HE ARGUES IT'S THE PLACE OF THE MEXICAN GOVERNMENT TO DECIDE IF ADDITIONAL CONTROLS ARE NECESSARY AND THEN PASS THE COST ON TO MEXICAN RATEPAYERS STILL MR BRYSON SUGGESTS HOPEFULLY THAT IT'S NOT IMPOSSIBLE THAT THERE ARE THINGS THAT CAN BE DONE AT REASONABLE COST TO REDUCE EMISSIONS UNDER MR BRYSON HIMSELF A PROMINENT FIGURE IN ENVIRONMENTAL AFFAIRS SCE'S SOUTHERN CALIFORNIA EDISON UNIT HAS FOCUSED ON VOLUNTARILY REDUCING EMISSIONS IN CALIFORNIA IT HAS 144 SEPARATE ENVIRONMENTAL OR CONSERVATION PROGRAMS IN PLACE INCLUDING A CENTER TO HELP BUSINESSES MEET CLEANAIR GOALS CARL POPE SIERRA CLUB EXECUTIVE DIRECTOR CREDITS SCE WITH DOING A VERY GOOD JOB OPERATING WITHIN THE VERY CONSTRAINED REGULATORY ENVIRONMENT IN SOUTHERN CALIFORNIA BUT IT'S A DIFFERENT STORY HE SAYS WHEN THE CONTROLS ARE LIFTED SEE RELATED LETTER LETTERS TO THE EDITOR MEXICO'S NEW UTILITY UNFAIRLY PORTRAYED WSJ OCT 13 1993 9309080128 YY93 MM10 9310130134 930920 BOARD OF CONTRIBUTORS THE FUTURE OUTWITS US AGAIN BY ARTHUR SCHLESINGER JR THE ASTONISHING EVENTS OF THE LAST WEEK ON TOP OF THE ASTONISHING DEVELOPMENTS OF THE LAST DECADE RAISE INTERESTING QUESTIONS ABOUT THE CAPACITY OF ORDINARY MORTALS AND EVEN OF CONFESSEDLY SUPERIOR MORTALS LIKE JOURNALISTS AND PROFESSORS TO READ THE FUTURE SUPPOSE SOMEONE A SHORT DECADE AGO HAD PREDICTED THAT WITHIN 10 YEARS THE WORLD WOULD SEE THE DISAPPEARANCE OF THE SOVIET UNION THE DECOMMUNIZATION OF EASTERN EUROPE THE UNIFICATION OF GERMANY THE BLOODY BREAKUP OF YUGOSLAVIA THE END OF APARTHEID IN SOUTH AFRICA THE MARKETIZATION OF CHINA NEARREVOLUTIONARY POLITICAL UPHEAVALS IN JAPAN AND ITALY AND NOW THE HANDSHAKE ON THE WHITE HOUSE LAWN BETWEEN THE PRIME MINISTER OF ISRAEL AND THE HEAD OF THE PALESTINE LIBERATION ORGANIZATION SUCH RAVINGS WOULD HAVE BEEN RIDICULED BY EVERYONE FROM THE EDITOR OF THIS EDITORIAL PAGE TO THE WRITER OF THIS COLUMN AND YET ALL THESE THINGS HAVE NOW HAPPENED AND ALMOST NO ONE AMONG THE ENDLESS PARADE OF SAGES SEERS AND SAVANTS THAT CROWD OUR NEWSPAPER OPED PAGES AND OUR TELEVISION CHANNELS PREDICTED ANY OF THEM NOT ALAS THAT THIS DISCOURAGES THEM FROM MAKING MORE PREDICTIONS I HAVE WRITTEN ABOUT THE INSCRUTABILITY OF HISTORY BEFORE BUT TO SUCH LITTLE AVAIL THAT IT SEEMS WORTHWHILE TO TRY AGAIN WHAT ARE THE LESSONS TO BE DRAWN I WOULD LIKE TO THINK THAT OUR JOURNALISTS MIGHT HEREAFTER STOP MAKING PREDICTIONS THEMSELVES AND STOP ASKING OTHER PEOPLE TO MAKE PREDICTIONS SOME TIME AGO I DECIDED TO SKIP OVER STORIES THAT CONSISTED MAINLY OF SPECULATIONS ABOUT THE FUTURE AND I HAPPILY DISCOVERED THAT SKIPPING PREDICTIONIST STORIES CUT MY NEWSPAPERREADING TIME ABOUT IN HALF OF COURSE AS A PROPONENT OF A CYCLICAL VIEW OF AMERICAN POLITICS I MUST AGREE THAT SOME THINGS CAN BE PREDICTED BUT IT IS NECESSARY TO DISTINGUISH BETWEEN THOSE PHENOMENA THAT ARE PREDICTABLE AND THOSE THAT ARE NOT HISTORIANS DO OFTEN DERIVE GENERALIZATIONS FROM THE PAST THAT THROW LIGHT ON THINGS TO COME CRANE BRINTON'S THE ANATOMY OF REVOLUTION ACCURATELY IDENTIFIED THE LIFECYCLE OF REVOLUTIONS FROM HONEYMOON TO THERMIDOR IF MORE PEOPLE HAD READ BRINTON THE WORLD MIGHT HAVE BEEN SPARED MISCONCEPTIONS ABOUT THE REVOLUTIONS OF OUR TIME FIRST ABOUT THEIR BENEVOLENCE AND LATER AFTER BELIEF IN BENEVOLENCE DRAINED AWAY ABOUT THE PERMANENCE OF THEIR FANATICAL PURPOSES WE FIND COMPARABLE PREDICTIVE GENERALIZATIONS IN A NUMBER OF AREAS THE STAGES OF ECONOMIC DEVELOPMENT FOR EXAMPLE OR THE IMPACT OF INDUSTRIALIZATION AND URBANIZATION OR THE INFLUENCE OF CLIMATE OR DISEASE OR SEA POWER OR THE FRONTIER OR SOIL EXHAUSTION OR THE EFFECTS OF POPULATION GROWTH OR THE CIRCULATION OF ELITES OR THE CONSEQUENCES OF TECHNOLOGICAL INNOVATION AND ENTREPRENEURIAL INITIATIVE OR I WOULD ADD THE CYCLES OF AMERICAN POLITICS SUCH GREAT CURRENTS OF HISTORY ARE BROADLY PREDICTABLE BECAUSE THEY EXPRESS DEEPRUNNING LONGTERM PULSATIONS OF CHANGE THE SHORT TERM ALAS IS A DIFFERENT MATTER THE PROSPECT IMMEDIATELY IN FRONT OF US CONTAINS TOO MANY VARIABLES IT IS TOO MUCH AT THE MERCY OF ACCIDENT AND FORTUITY AND PERSONALITY OF WISDOM STUPIDITY AND CHANCE TOO DEPENDENT ON WHO LIVES AND WHO DIES TO PERMIT EXACT AND SPECIFIC FORECASTS THAT IS WHY WE ARE CONTINUALLY SURPRISED BY THE FUTURE THE ABILITY TO FORESEE THAT SOME THINGS CANNOT BE FORESEEN SAID ROUSSEAU IS A VERY NECESSARY QUALITY WE WILL SOON ENTER THE SEASON WHEN MUCH NEWSPRINT WILL BE WASTED IN FRUITLESS SPECULATION ABOUT PRESIDENTIAL CANDIDATES IN 1996 I FIRST VOTED IN THE ELECTION OF 1940 AND I HAVE OFTEN THOUGHT THAT ANYONE TRYING IN 1939 TO PREDICT THE NEXT FOUR PRESIDENTS WOULD HAVE HARDLY NAMED AS THE FIRST A PRESIDENT SEEKING A TOTALLY UNPRECEDENTED THIRD TERM AS THE SECOND AN OBSCURE BACKBENCH SENATOR FROM MISSOURI ANTICIPATING DEFEAT BY THE GOVERNOR OF HIS STATE IN THE IMPENDING DEMOCRATIC PRIMARY AS THE THIRD AN UNKNOWN LIEUTENANT COLONEL IN THE US ARMY AND AS THE FOURTH A KID STILL IN COLLEGE YET THAT'S THE WAY IT WAS LORD KEYNES HAD IT RIGHT WHEN HE SAID THE INEVITABLE NEVER HAPPENS IT IS THE UNEXPECTED ALWAYS ONLY A FEW YEARS BACK SOME AMERICANS WERE SO CATEGORICALLY CERTAIN OF FUTURE DISASTER IF WE DID NOT SMASH THE REDS AT ONCE THAT THEY CALLED FOR PREVENTIVE NUCLEAR WAR HAD THEY BEEN ABLE TO PERSUADE OUR GOVERNMENT TO DROP THE BOMB ON MOSCOW IN THE 1950S OR ON BEIJING IN THE 1960S BUT THANK HEAVENS THEY NEVER DID AND NO ONE TODAY INCLUDING THE PREVENTIVE WARRIORS THEMSELVES REGRETS OUR FAILURE TO DO SO THE REASONING EMPLOYED IN THE PREVENTIVE WAR ARGUMENT ANDREI SAKHAROV WROTE IN HIS MEMOIRS IS WRONG IN PRINCIPLE WE KNOW TOO LITTLE ABOUT THE LAWS OF HISTORY THE FUTURE IS UNPREDICTABLE WE ARE NOT GODS NO DOUBT THE ALMIGHTY DOES KNOW THE FUTURE BUT HE HAS DECLINED TO CONFIDE SUCH FORESIGHT TO FRAIL AND ERRING MORTALS AND MORTALS TAKE GREAT RISKS WHEN THEY USURP THE ROLE OF GODS REINHOLD NIEBUHR USED TO WARN ABOUT THE DEPTH OF EVIL TO WHICH INDIVIDUALS AND COMMUNITIES MAY SINK WHEN THEY TRY TO PLAY THE ROLE OF GOD TO HISTORY I SUPPOSE THE HUMAN YEARNING FOR KNOWLEDGE OF THE FUTURE IS INSATIABLE THAT IS WHY FORTUNE TELLERS AND ASTROLOGERS AND TAROT CARD DEALERS AND PALM READERS FLOURISH YET HOW LUCKY IT IS THAT THE FUTURE ITSELF CONSISTENTLY FRUSTRATES THOSE WHO PURPORT TO UNRAVEL IT FOR IF THE FUTURE COULD BE PREDICTED WHAT FUN WOULD REMAIN IN LIFE SUCCESSFUL PREDICTION MOREOVER IMPLIES A DETERMINISTIC UNIVERSE AND WOULD EXPOSE HUMAN FREEDOM AS AN ILLUSION IT IS THE VERY INDETERMINACY OF THINGS THAT EMBOLDENS US TO BELIEVE THAT WITHIN LIMITS WE CAN MAKE OUR OWN FUTURE SO LET US BLESS HISTORY FOR CONTINUING TO OUTWIT ALL OUR CERTITUDES AS GENERAL DE GAULLE HAS SAID ONE SHOULD NOT INSULT THE FUTURE THE INSCRUTABILITY OF HISTORY REMAINS THE SALVATION OF HUMAN FREEDOM AND OF HUMAN RESPONSIBILITY THE FAILURE OF PREDICTION PERMITS US TO ACT AS IF OUR CHOICES MAKE A DIFFERENCE FOR NO ONE CAN PROVE THAT THEY DON'T AND THERE IS NO OTHER WAY THAT WE CAN VINDICATE HUMAN DIGNITY AND CONTRIVE A MORAL EXISTENCE PROVIDENCE HAS NOT CREATED MANKIND ENTIRELY INDEPENDENT OR ENTIRELY FREE WROTE TOCQUEVILLE IT IS TRUE THAT AROUND EVERY MAN A FATAL CIRCLE IS TRACED BEYOND WHICH HE CANNOT PASS BUT WITHIN THE WIDE VERGE OF THAT CIRCLE HE IS POWERFUL AND FREE AS IT IS WITH MAN SO WITH COMMUNITIES MR SCHLESINGER IS ALBERT SCHWEITZER PROFESSOR OF THE HUMANITIES AT THE CITY UNIVERSITY OF NEW YORK AND A WINNER OF PULITZER PRIZES IN BIOGRAPHY AND HISTORY SEE RELATED LETTER LETTERS TO THE EDITOR IN OTHER WORDS WHAT WILL BE WILL BE WSJ OCT 13 1993 9309200008 YY93 MM10 9310130131 930915 THE BATTLE OVER NAFTA MEXICO HAS A LOT RIDING ON OUTCOME OF THE TRADE DEBATE PRESIDENT SALINAS LIKELY FACES POLITICAL ECONOMIC FALLOUT IF US CONGRESS KILLS ACCORD BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY FOR MEXICO THE NORTH AMERICAN FREE TRADE AGREEMENT MEANS A GREAT DEAL MORE THAN TARIFF AND INVESTMENT LIBERALIZATIONS IT'S AT THE CORE OF A FUNDAMENTAL CHANGE IN THE COUNTRY'S RELATIONSHIP WITH THE REST OF THE WORLD WHAT PRESIDENT CARLOS SALINAS DE GORTARI CALLS THE NEW NATIONALISM AFTER CENTURIES OF TRYING TO CHOKE OFF OUTSIDE INFLUENCES MEXICANS HAVE BEGUN TO DELIGHT IN FOREIGN PRODUCTS AND TO TAKE PRIDE IN MEXICO'S EXPORTS FROM CORONA BEER TO THE PRIZEFIGHTER JULIO CESAR CHAVEZ BUT JUST WHEN THEY WERE GETTING COMFORTABLE WITH THE IDEA OF INTERNATIONALISM MEXICANS FIND THEMSELVES CONFRONTING THE POSSIBILITY OF NAFTA BEING REJECTED BY THEIR OLD NEMESIS THE US A NAFTA DEFEAT LIKELY WOULD FORCE MR SALINAS TO WALK A TIGHTROPE BETWEEN HIS INTERNATIONAL ECONOMIC CONSTITUENCY AND HIS DOMESTIC POLITICAL ONE ANALYSTS SAY MR SALINAS WOULD HAVE TO SOOTHE US INVESTORS WHO ARE PROPPING UP THE MEXICAN PESO AND AT THE SAME TIME PLAY TO ANTIAMERICAN FORCES AT HOME IT WOULD BE A TALL ORDER EVEN FOR A POLITICIAN OF MR SALINAS'S DEMONSTRATED ADEPTNESS IN THE WORST CASE WHICH MOST ANALYSTS CONSIDER TO BE AVOIDABLE A SETBACK FOR NAFTA COULD PROVOKE A SUDDEN WITHDRAWAL OF FOREIGN CAPITAL FROM MEXICO A COLLAPSE OF THE PESO AND A RETURN TO THE KIND OF ECONOMIC INSTABILITY THAT WRACKED MEXICO DURING THE 1980S THAT COULD HAVE POLITICAL REPERCUSSIONS LIKELY LEADING TO THE STRENGTHENING OF MR SALINAS'S RIVAL THE POPULIST CUAUHTEMOC CARDENAS DURING NEXT YEAR'S PRESIDENTIAL ELECTIONS SOME US OPPONENTS OF NAFTA ARE TOUTING MR CARDENAS AS A DEMOCRATIC ALTERNATIVE TO MEXICO'S RULING INSTITUTIONAL REVOLUTIONARY PARTY THE POLITICAL MACHINE THAT HAS RUN MEXICO SINCE 1929 BUT THE MEXICAN LEFT WHICH HAS EMBRACED MR CARDENAS HARDLY COULD BE CONSIDERED A FRIEND OF THE US TWO LEADING LEFTIST IDEOLOGUES RECENTLY FLOATED AN IDEA FOR AN ALTERNATIVE TO NAFTA IN WHICH MEXICO WOULD SLAP 100 TARIFFS ON US GOODS WHILE ALLOWING EUROPEAN OR JAPANESE PRODUCTS TO ENTER DUTYFREE BY CONTRAST MOST ANALYSTS CONSIDER IT UNTHINKABLE THAT MR SALINAS WOULD REVERT TO ECONOMIC POPULISM EVEN IF NAFTA IS SCUTTLED IN THE US I HAVE NO DOUBT THAT PRESIDENT SALINAS WILL STAY THE COURSE ECONOMICALLY WHATEVER HAPPENS TO NAFTA SAYS THURMON WILLIAMS PRESIDENT OF THE MEXICAN OPERATIONS OF SEARS ROEBUCK & CO WHICH IS INVESTING ABOUT 200 MILLION IN MEXICO OVER THE NEXT TWO YEARS EVEN MORE THAN MULTINATIONALS MR SALINAS WILL HAVE TO MAINTAIN THE CONFIDENCE OF US PORTFOLIO INVESTORS WHO HOLD ABOUT ONEFIFTH OF MEXICAN EQUITIES AND HALF ITS TREASURY BILLS THEY HAVE PROVIDED THE CAPITAL THAT HAS ALLOWED MEXICO TO MAINTAIN EXCHANGERATE STABILITY THE MARKETS HAVE REMAINED SURPRISINGLY STRONG DESPITE THE STORMS KICKING UP AROUND NAFTA THE STOCK MARKET RECENTLY REACHED A HISTORIC HIGH THE PESO HAS BEEN STRENGTHENING AGAINST THE DOLLAR AND INTEREST RATES HAVE BEEN HOVERING NEAR THEIR 12MONTH LOWS BUT A FAILURE OF NAFTA WOULD LIKELY FORCE MR SALINAS TO TAKE FURTHER STEPS TO CONVINCE THE MARKETS OF THE PERMANENCE OF MEXICO'S ECONOMIC REFORMS INDEED AS PARADOXICAL AS IT SEEMS A REJECTION OF NAFTA MIGHT PRODUCE MUCH BROADER LIBERALIZATIONS OF CERTAIN MEXICAN INDUSTRIES THAN WERE CONTEMPLATED UNDER THE PACT ONE EXAMPLE IS THE OIL INDUSTRY A SYMBOL OF MEXICAN NATIONALISM THAT MR SALINAS FOUGHT TO KEEP OUT OF NAFTA IN RECENT WEEKS HOWEVER MEXICAN FINANCIAL CIRCLES HAVE BEEN ABUZZ OVER A DRAFT OF GREATLY LIBERALIZED OILINDUSTRY REGULATIONS EVIDENTLY PART OF AN ECONOMIC CONTINGENCY PLAN THAT WOULD BE ENACTED IF NAFTA WERE DEFEATED IN THE US UNDER IT MEXICO FOR THE FIRST TIME WOULD ALLOW PRIVATE COMPANIES TO BUILD AND OWN PIPELINES AND TO IMPORT REFINED PRODUCTS IF THE CONTINGENCY PLAN HELPED MEXICO AVOID AN ECONOMIC DEBACLE MR SALINAS PROBABLY WOULD BE ABLE TO MAINTAIN CONSIDERABLE CONTROL OVER THE SELECTION OF THE RULING PARTY'S CANDIDATE IN NEXT YEAR'S PRESIDENTIAL ELECTION ANALYSTS SAY OF COURSE IF NAFTA SINKS BEFORE MR SALINAS MAKES HIS PICK A REVITALIZED LEFT WING OF THE RULING PARTY WOULD SEEK MORE SAY IN THE SUCCESSION PROCESS BUT MEXICAN PRESIDENTS WIELD GREAT POWER EVEN WHEN THEY SUFFER POLITICAL SETBACKS IN 1982 DURING THE FINAL DAYS OF HIS TENURE PRESIDENT JOSE LOPEZ PORTILLO WITH THE STROKE OF A PEN NATIONALIZED MEXICO'S COMMERCIAL BANKS EVEN THOUGH HE HAD LED THE COUNTRY INTO A DEEP ECONOMIC CRISIS SOME FEEL A NONAFTA SCENARIO WOULD INCLINE MR SALINAS TOWARD FINANCE MINISTER PEDRO ASPE WHO HAS UNMATCHED STATURE WITH THE FINANCIAL MARKETS OTHERS SAY IT WOULD STRENGTHEN THE CASE FOR A CANDIDATE WITH POLITICAL SKILLS SUCH AS MEXICO CITY MAYOR MANUEL CAMACHO SOLIS OR SOCIAL SERVICES MINISTER LUIS DONALDO COLOSIO SHOULD NAFTA FAIL MR SALINAS'S ABILITY TO MAINTAIN THE CONFIDENCE OF FOREIGN INVESTORS AND MEXICAN NATIONALISTS WILL SHAPE MEXICO'S RELATIONSHIP WITH WASHINGTON FOR THE NEXT GENERATION BY WINNING BROAD SUPPORT FOR HIS ECONOMIC ALLIANCE WITH THE US MR SALINAS HAS PROVEN THAT ANTIAMERICANISM ISN'T AS PERVASIVE WITHIN MEXICAN SOCIETY AS WAS ONCE THOUGHT WERE A REBUFF OF NAFTA TO IGNITE AN ECONOMIC CRISIS HOWEVER IT COULD LAUNCH AN ANTIAMERICAN BACKLASH WITH FEW PRECEDENTS SEE RELATED LETTER LETTERS TO THE EDITOR CONSTANT STRUGGLE AGAINST CORRUPTION WSJ OCT 13 1993 9309150157 YY93 MM10 9310130130 930923 LOUIS BACON AIMS TO WIN AT ALL COSTSAND DOES BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL LOUIS MOORE BACON IS A SPORTSMAN AS A STUDENT HE WORKED ON A DEEPSEA FISHING CHARTER BOAT OFF LONG ISLAND NY MORE RECENTLY HE HUNTED WATER BUFFALO WITH A CROSSBOW IN ZIMBABWE IN HIS OFFICE HE SHOOTS HOOPS OR POUNDS A PUNCHING BAG TO WORK OFF TENSION BUT FOR THE FIERCELY COMPETITIVE MR BACON THE TRUEST SPORT IS TRADING AND BEATING THE WORLD'S CURRENCY AND BOND MARKETS AT AGE 37 HIS EIGHTYEAR TRACK RECORD HAS BROUGHT HIM ROUGHLY 2 BILLION TO MANAGE FOR EUROPEAN INVESTORS FROM LOMBARD ODIER & CO IN SWITZERLAND TO CREDIT AGRICOLE IN FRANCE BUT HIS CRITICS ACCUSE MR BACON OF TAKING THE COMPETITION TOO FAR TREATING EMPLOYEES HARSHLY AND TAKING PREDATORY ADVANTAGE OF OTHER TRADERS EVEN FRIENDS AT ANY OPPORTUNITY MR BACON IS ONE OF THE HANDFUL OF TOP SPECULATORS LIKE GEORGE SOROS OR MICHAEL STEINHARDT WHO ROIL ENTIRE MARKETS WITH HUGE TRADES SOMETIMES TAKING ON CENTRAL BANKS TRYING TO PROP UP THEIR CURRENCIES LAST YEAR HE EARNED MORE THAN 35 MILLION AS HIS SHARE OF THE TRADING PROFITS ENOUGH TO RANK HIM THE EIGHTHHIGHEST PAID PERSON ON WALL STREET ACCORDING TO FINANCIAL WORLD MAGAZINE JONATHAN BREN OF ALPHA INVESTMENT MANAGEMENT INC WHICH PLACES MONEY WITH TRADERS FOR FOREIGN INVESTORS SAYS MR BACON RANKS WITH MESSRS SOROS AND STEINHARDT AS ONE OF THE TOP THREE TRADERS IN THE WORLD LEE HENNESSEE WHO TRACKS TRADERS AT SMITH BARNEY SHEARSON INC SAYS FROM 1986 TO 1992 LOUIS BACON HAS THE HIGHEST RETURN WITH THE LOWEST VOLATILITY OF ANYBODY IN THE INDUSTRY MR BACON'S RECORD STANDS OUT NOT ONLY FOR THE RAW RETURNS BUT BECAUSE THEY ARE GENERALLY ACHIEVED WITH MINIMAL MONTHTOMONTH LOSSES SOME TRADERS WHO SHOOT THE LIGHTS OUT ALSO SUFFER OCCASIONAL HUGE LOSSES OR DRAWDOWNS OF 10 TO 25 MR BACON RARELY LOSES MORE THAN ONE OR TWO PERCENTAGE POINTS IN ANY GIVEN MONTH AND HASN'T HAD A LOSING YEAR IN EITHER OF HIS TWO MAIN FUNDS UNLIKE MESSRS SOROS OR STEINHARDT MR BACON ACTIVELY DISCOURAGES NEWS MEDIA ATTENTION IN THE BELIEF THAT SUCH NOTORIETY MAY BACKFIRE HE DECLINED TO BE INTERVIEWED FOR THIS ARTICLE EXPLAINING TO ONE FRIEND THAT QUOTES FROM HIM MIGHT TEND TO LEGITIMIZE THE ARTICLE ASKED FOR COMMENT ON THIS ARTICLE MR BACON'S AIDE JAMES KELLY SAID THE ACCOUNT IS REPLETE WITH FACTUAL ERRORS IN ADDITION TO MISLEADING INFORMATION FROM A DISGRUNTLED EMPLOYEE HOWEVER IT CONTINUES TO BE OUR POLICY TO DECLINE TO COMMENT TO THE PRESS ON MATTERS RELATING TO OUR AFFAIRS OR THE AFFAIRS OF OUR CLIENTS BUT INTERVIEWS WITH HIS COLLEAGUES INVESTORS AND FORMER EMPLOYEES GIVE A PICTURE OF A WINATALLCOSTS SOUTHERNER WHO HAS ORGANIZED HIS LIFE TO TRADE THE MARKETS 24 HOURS DAY THE ORGANIZATION IS FOCUSED ON GETTING MARKET DATA AND CHARTS TO MR BACON NO MATTER WHERE HE IS EMPLOYEES CARRY LAMINATED WALLET CARDS LISTING 24 PHONE NUMBERS FOR HIM INCLUDING THOSE OF HIS 28 MILLION TUDORSTYLE HOME IN GREENWICH CONN APARTMENTS IN MANHATTAN AND PARIS TWO BMWS A MERCEDES A VOLVO AND HIS AIRPLANE BUT THE INTENSITY HAS A DOWNSIDE MR BACON HAS ALIENATED MANY FORMER EMPLOYEES AND INVESTORS HIS STAFF HAS GROWN TO 120 EMPLOYEES FROM 20 DURING THE PAST THREE YEARS AND DOZENS OF EMPLOYEES HAVE LEFT WITH MANY COMPLAINING OF HARSH BULLYING TREATMENT BY MR BACON AND HIS TOP AIDES LED BY MR KELLY A NORTH CAROLINA NATIVE MR BACON COMES FROM A WELLOFF BACKGROUND HE ATTENDED PREPPY EPISCOPAL HIGH SCHOOL IN ALEXANDRIA VA MIDDLEBURY COLLEGE AND COLUMBIA BUSINESS SCHOOL IN NEW YORK ALTHOUGH HE STUDIED ENGLISH LITERATURE AND HUMANITIES AS AN UNDERGRADUATE HE ALREADY KNEW HE WANTED TO TRADE COMMODITY FUTURES HIS STEPMOTHER'S BROTHER IS JULIAN ROBERTSON A RENOWNED HEDGE FUND MANAGER MR BACON MET ONE OF HIS FIRST BOSSES WHILE WORKING ON THE CHARTER FISHING BOAT ON LONG ISLAND HE WAS ALWAYS VERY FOCUSED HE HAD AN ABILITY TO CONCENTRATE AS WELL AS ANYBODY I EVER SAW SAYS WALTER N FRANK WHO OWNS A NEW YORK STOCK EXCHANGE SPECIALIST FIRM MR BACON HE RECALLED APPLIED THAT TEMPERAMENT TO FISHING ITSELF TRACKING TIDES WATER TEMPERATURE DRIFTS AND WINDS TO FIGURE OUT WHERE THE FISH WERE MR BACON WENT TO WORK TRADING COMMODITY FUTURES FOLLOWING IN THE FOOTSTEPS OF HIS OLDER BROTHER ZACH WHO ONCE WORKED FOR MR SOROS HE ALSO BECAME FRIENDS WITH A FELLOW SOUTHERNER SUPERTRADER PAUL TUDOR JONES MR BACON BECAME ONE OF MR JONES'S BROKERS AND IN 1986 BEGAN TRADING MONEY FOR CLIENTS WHEN MR JONES SENT HIS INVESTORS THEIR PROFITS ONE YEAR LATE IN THE 1980S HE SAID HE COULDN'T MANAGE ADDITIONAL MONEY BUT RECOMMENDED MR BACON HE TRADES USING A MIXTURE OF FUNDAMENTAL ECONOMIC ANALYSIS CHART PATTERNS CLOSE ATTENTION TO WHAT OTHER TRADERS ARE DOING OR ANYTHING ELSE UNDER THE SUN HE MIGHT MAKE DOZENS OF TRADES IN A DAY SOME OF THEM WORTH 500 MILLION OR MORE CLOSING OUT MANY WITH SMALL LOSSES AND LETTING THE WINNERS RUN FOR DAYS HE'S JUST INANDOUT INANDOUT INANDOUT SAYS ONE FORMER EMPLOYEE HE SCORED BIG IN 1991 AT THE START OF THE PERSIAN GULF WAR BY CORRECTLY BETTING ON A DROP IN THE DOLLAR SAID ONE FORMER EMPLOYEE IN MIDMAY OF THIS YEAR HE WON BIG BY SELLING THE SPANISH PESETA AGAINST THE GERMAN MARK BEFORE THE PESETA WAS DEVALUED ACCORDING TO ANOTHER ALUMNUS HE MAY TRY TO ANTICIPATE HOW OTHER TRADERS WILL CLOSE OUT THEIR POSITIONS WHEN THE MARKET CLOSES IN LONDON OR HOW PRICES WILL MOVE WHEN OTHER TRADERS SHIFT FROM ONE FUTURES CONTRACT TO ANOTHER WHEN THE OLD CONTRACTS EXPIRE OR HE MAY LOOK TO PAST PATTERNS FOR FUTURE MARKET MOVES TRADING CLINTON'S ELECTION DAY LIKE RONALD REAGAN'S SOME RIVAL TRADERS CONSIDER MR BACON TO BE A PREDATOR A FEW YEARS AGO ACCORDING TO ONE FORMER EMPLOYEE MR BACON OPENED SMALL ACCOUNTS WITH ABOUT 15 OTHER TRADERS OSTENSIBLY FOR INVESTMENT PURPOSES HOWEVER THE FORMER EMPLOYEE SAYS MR BACON ALSO WANTED TO USE THOSE TRADERS' DAILY POSITION REPORTS AS AN EXTRA INDICATOR OF MARKET SENTIMENT SOME FIRMS HAVE DECLINED SUCH INVESTMENTS FROM MR BACON OUT OF CONCERN HE MIGHT USE INFORMATION ABOUT THEIR POSITIONS TO TRADE AGAINST THEM SOME TRADERS SAY THEY ARE EVEN RELUCTANT TO ENTER INTO CASUAL CONVERSATIONS WITH MR BACON ABOUT THEIR VIEWS OF THE MARKET THEY BELIEVE MR BACON MIGHT TRY TO DEDUCE THEIR POSITIONS AND MOVE THE MARKET AGAINST THEM FORCING THEM TO SELL WHEN THE PRICE REACHES PRESET LIMITS THEY HAVE SET MR BACON REMAINS APART FROM MOST OF THE STAFF SITTING IN A 35THFLOOR OFFICE ACROSS FROM ROCKEFELLER CENTER WITH SEVERAL GIANT TRADING SCREENS UNDER HIS DESK IS A BUTTON THAT OPERATES ELECTRIC DOORS TO THE INNER SANCTUM HE COMMUNICATES WITH A BULLPEN OF TRADERS WITH A GOOSENECK MICROPHONE ON HIS DESK AND HE DIDN'T ATTEND A PAINTBALL BATTLE BETWEEN HIS STAFF AND THE TUDOR JONES STAFF MR BACON MAKES MOST OF THE MAJOR TRADING DECISIONS BUT ANOTHER TRADER JAMES CAPRA A FORMER ECONOMIST FOR THE FEDERAL RESERVE BANK OF NEW YORK WHO SPECIALIZES IN BONDS ALSO CONTRIBUTES TO THE FIRM'S RESULTS MR BACON'S STANDARD FEE IS A HEFTY 3 OF ASSETS AND 25 OF ANY PROFITS LIKE MANY TRADERS MR BACON ALSO HAS A BROKERAGE SUBSIDIARY THROUGH WHICH HE GAINS A SHARE OF HIS OWN FUTURES TRADING COMMISSIONS FATTENING HIS REVENUES HE ALSO RECENTLY BOOSTED HIS POTENTIAL FEES BY ISSUING A 12 BILLION BOND THROUGH CREDIT AGRICOLE A FRENCH BANK GIVING EUROPEAN INVESTORS 60 OF HIS TRADING PROFITS WITH A FIVEYEAR MONEYBACK GUARANTEE US INVESTORS CAN'T GIVE MR BACON MONEY TO TRADE BECAUSE LIKE SOME OTHER TRADERS HE HAS WITHDRAWN FROM THE US REGULATORY SYSTEM THAT'S BECAUSE DIFFERING US RULE MAKERS GOVERN SECURITIES FUTURES AND OPTIONS MAKING IT DIFFICULT TO COMBINE SUCH INSTRUMENTS IN INVESTMENT PORTFOLIOS SOME OF HIS EARLY INVESTORS ARE MIFFED AT HAVING BEEN EXCLUDED MR BACON CAN BE VINDICTIVE JEROME ABERNATHY WHO HOLDS A DOCTORATE FROM MASSACHUSETTS INSTITUTE OF TECHNOLOGY RAN A TRADING GROUP AT MR BACON'S MOORE CAPITAL MANAGEMENT UNIT THAT GENERATED A 224 GAIN FROM MARCH TO DECEMBER OF 1992 BUT WHEN MR ABERNATHY LEFT THE BACON ORGANIZATION THIS YEAR AND TRIED TO RAISE 30 MILLION TO START HIS OWN OPERATION STONEBROOK CAPITAL MANAGEMENT INC MR BACON AND HIS STAFF DISPARAGED HIS ACCOMPLISHMENTS KNOCKING OUT STONEBROOK'S ABILITY TO ATTRACT FUNDS HE WENT TO A LOT OF TROUBLE TO GET THE GUY LOCKED OUT OF THE COMMUNITY SAID ONE TRADER WHO KNOWS MR BACON I CERTAINLY HEARD RUMORS THAT MOORE WAS DOING THAT MR ABERNATHY SAID I HOPE THAT'S NOT TRUE BUT EVEN PREDATORS HAVE THEIR LIMITATIONS WHEN MR BACON ARRIVED IN ZIMBABWE LOCAL GUIDES INFORMED HIM THAT THE CROSSBOW HE HAD BROUGHT WITH HIM WAS TOO SMALL FOR WATER BUFFALO MR BACON QUICKLY ARRANGED FOR A LARGER CROSSBOW TO BE SHIPPED TO HIM BY JET SEE RELATED LETTER LETTERS TO THE EDITOR SUCH A SCANDAL MY OWN BROTHER WSJ OCT 13 1993 9309230091 YY93 MM10 9310130129 930927 COMMERCIAL RISK IN MEXICO A DISPUTE OVER A BUSINESS DEAL MAY LAND YOU IN JAIL LEGAL SYSTEM CAN BE SURREAL NAFTA AND RECENT REFORM WON'T CURE ALL THE ILLS PEMEX'S SOVEREIGN IMMUNITY BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY IT ALL BEGAN WITH A KNOCK ON THE DOOR OF ROOM 1924 OF THE HOTEL STOUFFER PRESIDENTE WHEN ALEX ARGUETA OPENED THAT DOOR THREE YEARS AGO THE RESORT DEVELOPER FROM TUCSON ARIZ FOUND FOUR FEDERAL JUDICIAL POLICEMEN TELLING HIM HE HAD A PROBLEM WITH A CAR REGISTERED IN HIS NAME BUT THIS HE SAYS WAS A RUSE THE POLICE REALLY WANTED TO TALK ABOUT HIS DISPUTE OVER A BANK LOAN ALTHOUGH IT WOULD HAVE BEEN A MINOR CIVIL MATTER IN THE US MR ARGUETA QUICKLY FOUND HIMSELF BEHIND BARS IN THE HEADQUARTERS OF THE FEDERAL ATTORNEY GENERAL HE SAYS HE LISTENED TO A MAN BEING BEATEN IN THE NEXT ROOM AND WAS TOLD HE WOULD BE BEATEN TOO IF HE DIDN'T ANSWER SOME QUESTIONS HE ANSWERED THEM BUT STILL HE LANGUISHED FOR 16 MONTHS IN THE INFAMOUS RECLUSORIO PREVENTIVO NORTE AS HIS CASE WOUND THROUGH MEXICO'S COURTS AMONG HIS FELLOW INMATES RAFAEL CARO QUINTERO AND MIGUEL ANGEL FELIX GALLARDO ONCE MEXICO'S TOP COCAINE CAPOS THE WHOLE SITUATION WAS A BIZARRE NIGHTMARE SAYS MR ARGUETA WHO WAS NEVER CONVICTED OF A CRIME RED TAPE AND WORSE IF YOU THINK DEALING WITH THE US LEGAL SYSTEM IS VEXING TRY TUSSLING IN MEXICO MR ARGUETA'S ORDEAL READS LIKE A SURREAL NOVEL BY GABRIEL GARCIA MARQUEZ DESPITE THE ENTHUSIASM OVER TRADE WITH MEXICO DOZENS OF AMERICANS ARE FINDING AS HE DID THAT WHEN A CROSSBORDER DEAL SOURS THEY RISK ENTERING A LABYRINTH WHERE THEIR INVESTMENTS CAN BE WIPED OUT BY BUREAUCRATIC BLOCKADES MERCURIAL MAGISTRATES OR WORSE PRESIDENT CARLOS SALINAS'S GOVERNMENT HAS TAKEN SOME STEPS TO STRAIGHTEN OUT THESE PROBLEMS HIS NEW REFORMMINDED ATTORNEY GENERAL JORGE CARPIZO RECENTLY STARTED A SPECIAL ARBITRATION UNIT AND IN JULY MEXICO'S ANCIENT COMMERCIAL CODEBASED ON NAPOLEANIC LAW WAS MODERNIZED TO STREAMLINE ARBITRATION BAIL LAWS WERE LIBERALIZED THIS MONTH TO PROVIDE FREEDOM FOR A WIDER VARIETY OF CHARGES INCLUDING CRIMINAL MATTERS THAT WOULD BE CIVIL MATTERS IN THE US CARLOS ANGULO A MEXICAN ATTORNEY WITH THE US LAW FIRM OF BAKER & MCKENZIE CALLS THESE CHANGES A BREAKTHROUGH HE NOTES HOWEVER THAT THE STREAMLINED ARBITRATION PROCESS WON'T COVER ALL BUSINESS DISPUTES MANY BUSINESSPEOPLE TO BE SAFE SAY THEY WILL CONTINUE PUTTING CLAUSES IN CONTRACTS CALLING FOR PRIVATE ARBITRATION ATTORNEYS IN BOTH COUNTRIES SAY THAT EVEN IF THE NORTH AMERICAN FREE TRADE AGREEMENT TAKES EFFECT SETTLEMENT OF BUSINESS DISPUTES BETWEEN PRIVATE FIRMS WILL REMAIN A PROBLEM FOR COMPANIES INVESTING IN MEXICO NAFTA DOESN'T DEAL WITH AIDS MALARIA OR GUNS IN THE STREETS SAYS JULIUS KATZ NAFTA'S CHIEF NEGOTIATOR FOR THE BUSH ADMINISTRATION AND NAFTA DOESN'T DEAL WITH PRIVATEPARTYTOPRIVATEPARTY DISPUTES BUT WITH DISPUTES ARISING OVER SUCH NAFTA ITEMS AS TARIFFS AND INTELLECTUAL PROPERTY HE SAYS TO BE SURE MANY FOREIGNERS NEVER RUN INTO TROUBLE INVESTING IN MEXICO BUT WHEN THEY DO RUN AFOUL OF THE MEXICAN LEGAL SYSTEM IT CAN BE A TORTUOUS EXPERIENCE MR ANGULO THE ATTORNEY WARNS THAT THE PROBLEM OF ILLEGAL ARREST PROCEDURES HAS BEEN AND REMAINS A VERY IMPORTANT AREA OF HUMANRIGHTS VIOLATIONS IN MEXICO IN MR ARGUETA'S CASE THE ISSUE SEEMED FAIRLY SIMPLE BANCO MEXICANO SOMEX SA SAID HE SHOULDN'T HAVE USED THE PROCEEDS FROM ITS 2 MILLION LOAN TO REPAY OTHER INVESTORS IN HIS DEVELOPMENT PROJECT ALONG THE GULF OF CALIFORNIA MR ARGUETA SAID HE HAD PAPERS SIGNED BY AN OFFICER OF THE BANK SHOWING THAT IT KNEW ALL ALONG HOW HE PLANNED TO USE THE MONEY WHEN THE DISPUTE DEVELOPED THE BANK THEN GOVERNMENTOWNED EVIDENTLY HAD LEVERAGE MR ARGUETA HADN'T COUNTED ON THE NEXT THING HE KNEW HE HAD BEEN CHARGED WITH A CRIME AGAINST MEXICO'S PATRIMONY A VAGUE CATEGORY OF ILLEGAL BEHAVIOR AND ONE THAT ISED BY THE STREAMLINED ARBITRATION PROCEDURES HE TRIED TO FIGHT THE CHARGE BUT IT WAS SHUTTLED BACK AND FORTH AMONG SEVEN JUDGES AS HE SAT IN PRISON ONE JUDGE BOWED OUT BECAUSE SHE KNEW AN ATTORNEY ON THE CASE BUT ONLY AFTER STUDYING IT FOR SEVEN MONTHS EVENTUALLY MR ARGUETA SIGNED AN AGREEMENT MODIFYING THE TERMS OF THE LOAN AND THE CHARGES WERE DROPPED ACCORDING TO LEGAL DOCUMENTS SAYS JACK BINNS A FORMER US AMBASSADOR TO HONDURAS WHO TRIED TO ASSIST MR ARGUETA IF YOU ARE IN JAIL YOU SETTLE IT'S THE DISPUTERESOLUTION MECHANISM THOUGH HE IS OUT OF JAIL MR ARGUETA SAYS THE BANK REFUSES TO SEND HIM STATEMENTS LISTING THE PRINCIPAL AND INTEREST ACCUMULATED ON HIS RESTRUCTURED LOAN WHICH COMES DUE AT THE END OF 1994 HE FEARS THAT IF HE DOESN'T GET AN ACCURATE ACCOUNTING THE BANK MAY FIND A NEW WAY TO CLAIM THAT HE VIOLATED THE AGREEMENT AND HE MAY ULTIMATELY LOSE TITLE TO THE SCENIC GULF OF CALIFORNIA PROPERTY BANCO MEXICANO SOMEX POINTS OUT THAT THE LOAN DISPUTE CROPPED UP WHEN THE BANK WAS IN GOVERNMENT HANDS WHICH IT NO LONGER IS ASKED ABOUT MR ARGUETA'S APPARENT ARREST ON FALSE PRETENSES A LAWYER FOR THE BANK SAYS THAT IS POSSIBLE THAT IS HOW THE ATTORNEY GENERAL MANAGES THINGS NOT THE BANK BUT THE LAWYER RAUL CARDENAS ADDS THAT MR ARGUETA WAS PARDONED BY THE BANK AND TO ACCEPT THE PARDON IS TO ADMIT THAT HE COMMITTED THE CRIME MR ARGUETA'S ATTORNEY DENIES THAT HIS CLIENT IMPLICITLY OR EXPLICITLY ADMITTED GUILT TO GET OUT OF PRISON THE ARREST OCCURRED BEFORE PRESIDENT SALINAS'S REFORMIST ATTORNEY GENERAL WAS APPOINTED AND HIS OFFICE SAYS IT HAS NO FILE ON THE CASE MR ARGUETA HAD COMPLAINED TO THE GOVERNMENT BUT HE SAYS HIS LETTERS WENT UNANSWERED OTHER INVESTORS HAVE HIT A DIFFERENT OBSTACLE A STATUTORY ONE ROBERT GOUGH WRESTLED WITH PETROLEOS MEXICANOS MEXICO'S PETROLEUM MONOPOLY KNOWN AS PEMEX FOR TWO YEARS OVER ITS AGREEMENT TO BUY 19 COSTLY VALVES FROM HIS COMPANY TUBULAR USA INC OF CORPUS CHRISTI TEXAS WHEN TUBULAR DIDN'T RECEIVE A 234000 PAYMENT FOR FOUR OF THE VALVES IT SUED PEMEX IN A FEDERAL COURT IN HOUSTON RATHER THAN GET CAUGHT UP IN MEXICO'S MURKY LEGAL SYSTEM TUBULAR PROVIDED EVIDENCE OF A FRAUDULENT PLAN BY PEMEX EMPLOYEES TO RUN OFF WITH THE MONEY AND THE JUDGE AGREED THAT TUBULAR WAS THE VICTIM OF CORRUPTION BUT PEMEX ARGUED SUCCESSFULLY THAT IT WAS PROTECTED UNDER THE A LAW CALLED THE US FOREIGN SOVEREIGN IMMUNITIES ACT WHICH SHIELDS FOREIGN GOVERNMENTS FROM A WIDE VARIETY OF SUITS IN SHORT PEMEX COULD ACT LIKE A BUSINESS BUT WHEN IT PLEASED IT COULD CLAIM A SORT OF GOVERNMENTAL STATUS I STILL CAN'T BELIEVE IT MR GOUGH SAYS BILL FLANIGAN AND DAVID BLACK PARTNERS IN ARRIBA LTD OF HOUSTON SLID INTO A SIMILAR MORASS AFTER AGREEING IN 1984 TO BUY RESIDUAL OIL FROM A PEMEX LABOR UNION THE UNION WHICH HAD LONG HAD THE RIGHT TO SELL A CERTAIN PERCENTAGE OF PEMEX'S OIL AND HAD TAKEN A CUT OF IT DIDN'T DELIVER THE OIL ARRIBA SUED THE UNION IN FEDERAL COURT IN HOUSTON AND WON TWO DEFAULT JUDGMENTS WHICH INCLUDING TREBLE DAMAGES AND INTEREST TOTALED 450 MILLION THE UNION REFUSED TO PAY JUST AS IT HAD REFUSED TO ATTEND KEY COURT HEARINGS MESSRS FLANIGAN AND BLACK ENLISTED SHERIFF'S DEPUTIES TO CONFISCATE ANY UNION ASSETS LOCATED NORTH OF THE RIO GRANDE THEY MANAGED TO SEIZE JEWELRY THAT A UNION OFFICIAL HAD LEFT IN A SAFEDEPOSIT BOX IN TEXAS AND IMPOUNDED TWO UNION AIRPLANES IN 1989 THEY SEIZED A THIRD A BOEING 757 JET BUT IT TURNED OUT TO BELONG TO THE MEXICAN PRESIDENT THEY RETURNED IT THE OIL MEN THOUGHT AT ONE POINT THAT THE UNION WAS FINALLY WILLING TO COMPROMISE IT AGREED TO PAY THEIR LEGAL FEES AND MAKE OIL DELIVERIES OVER THE NEXT 18 MONTHS TO CELEBRATE THE AGREEMENT THE UNION RENTED A HOTEL IN MCALLEN TEXAS AND FLEW UP A SQUADRON OF MEXICAN ENTERTAINERS TO FETE THE TWO MEN AT A LAVISH PARTY BUT AFTER PAYING THE 750000 IN LEGAL FEES PLUS A BIG HOTEL BILL THE UNION STILL DIDN'T DELIVER THE OIL MESSRS FLANIGAN AND BLACK ALSO TRIED SUING PEMEX BUT HIT THE SAME STONE WALL THAT HAD BLOCKED MR GOUGH THE FOREIGN SOVEREIGN IMMUNITIES ACT PEMEX ALSO ARGUED SUCCESSFULLY THAT THE CONTRACTS WERE ILLEGAL BECAUSE WHEN THE UNION SIGNED THEM IT NO LONGER HAD THE RIGHT TO SUCH BUSINESS IN EIGHT YEARS OF LEGAL MANEUVERING THE AMERICANS HAVE COLLECTED ONLY A LITTLE MORE THAN 1 MILLION ON THEIR 450 MILLION IN DEFAULT JUDGMENTS A CONDO HASSLE SO VEXING ARE THE PROBLEMS IN MEXICO'S VACATIONHOME INDUSTRY THAT FULLY A THIRD OF THE CASES IN THE US EMBASSY'S PROPERTY RECOVERY UNIT ARE DEDICATED TO SUCH HOUSING GLORIA LAJOUS AUTHOR OF A RECENT BOOK ON TOURIST PROBLEMS SAYS WE HAVE ALWAYS TAKEN CORRUPTION FOR GRANTED UNFORTUNATELY DOROTHY BRINGE DIDN'T THE CHICAGO PERSONNEL CONSULTANT THOUGHT THE MEXICAN GOVERNMENT WOULD STAND BEHIND HER INVESTMENT IN A CONDOMINIUM IN CANCUN THE REASON UNDER MEXICO'S COMPLEX PROTECTIONIST PROPERTY LAWS A GOVERNMENTBANK TRUST OWNED THE LAND UNDER THE PROPERTY MOREOVER THE GOVERNMENT WAS ENCOURAGING INVESTMENTS IN TOURISM BUT WHEN THE CONDO DEVELOPER RAN INTO TROUBLE AND SKIPPED WITH WHAT WAS LEFT OF 15 MILLION COLLECTED FROM HUNDREDS OF CONDO BUYERS THE GOVERNMENT SAID THEY WERE ON THEIR OWN THEN THEY GOT SUCKED IN FURTHER A WILY CONSTRUCTION UNION CONTENDED IT WAS FIRST IN THE LINE OF CREDITORS MRS BRINGE SAYS SHE AND MORE THAN 100 OTHERS PAID THE UNION 40000 HOPING TO RESOLVE THE ISSUE BUT THE PAYMENT DID NO GOOD WE MADE MANY MISTAKES SHE SAYS THE GROUP FINALLY RESORTED TO PICKETING MEXICAN CONSULATES IN THE US USMEXICAN TRADE SHOWS AND A MEETING OF PRESIDENT SALINAS AND PRESIDENT CLINTON LATE LAST YEAR IN AUSTIN TEXAS NOW THE GROUP IS WORKING WITH ITS THIRD ATTORNEY ON THE EIGHTYEAROLD PROBLEM I AM STILL A SUPPORTER OF NAFTA MRS BRINGE SAYS BUT IT WORRIES ME THAT NO ONE HAS ADDRESSED THE ISSUE OF SMALL BUSINESSMEN GETTING BURNED FOR PETER FLORANCE THE FRUSTRATION EXTENDS TO A VERY PERSONAL MATTER EXECUTIVE COMPENSATION A SENIOR EXECUTIVE FOR MORE THAN A DECADE WITH BUFFALO FORGE SA WHICH WAS A MEXICAN INDUSTRIALMACHINERY AFFILIATE OF A UNIT OF AMPCOPITTSBURGH CORP HE GOT INTO A BIND WHEN HIS JOB WAS CUT IN 1991 IN A CORPORATE RESTRUCTURING HE ASKED FOR ABOUT 250000 THAT HE BELIEVED WAS DUE UNDER MEXICO'S GENEROUS SEVERANCEPAY LAWS INSTEAD HE ENDED UP IN PRISON RATHER THAN GIVING HIM SEVERANCE PAY THE COMPANY ACCUSED HIM OF ABUSING THE TRUST OF HIS EMPLOYER BY AUTHORIZING A 7000 LOAN TO AN EMPLOYEE THE EMPLOYEE HAD BEEN RAPED AND NEEDED THE LOAN TO GET SAFER HOUSING MR FLORANCE SAYS IT ISN'T UNCOMMON FOR MEXICAN COMPANIES TO LEND MONEY TO EMPLOYEES IN GOOD STANDING SITTING IN JAIL MR FLORANCE TRIED TO FIGHT HIS CASE ALL THE WAY TO THE MEXICAN SUPREME COURT BUT FOUND THE PROCESS MADDENING COURT OFFICIALS FOR INSTANCE CONTENDED THAT THEY HADN'T RECEIVED HIS EVIDENCE EVEN THOUGH HIS ATTORNEY HAS A RECEIPT FOR ACCEPTANCE OF THE PACKAGE HE EVENTUALLY AGREED TO SIGN A DOCUMENT SAYING HE HAD ABUSED HIS EMPLOYER'S TRUST HE RECEIVED NO SEVERANCE PAY AMPCOPITTSBURGH SAYS IT ISN'T FAMILIAR WITH THE EPISODE AND CAN'T COMMENT HOW DO I FEEL ABOUT THE MEXICAN LEGAL SYSTEM SAYS MR FLORANCE NOW LIVING IN PHOENIX IT IS PROBABLY THE MOST CORRUPT SYSTEM IN THE WORLD I KNOW SEE RELATED LETTER LETTERS TO THE EDITOR CONSTANT STRUGGLE AGAINST CORRUPTION WSJ OCT 13 1993 9309270056 YY93 MM10 9310120134 931012 COMMODITIES COPPER FUTURES RISE BUT TRADERS WARN RALLY IS LIKELY TO BE SHORTLIVED AMID OVERSUPPLY BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COPPER FUTURES PRICES RALLIED MORE THAN A PENNY A POUND BUT TRADERS CAUTIONED THAT THE TECHNICALLY DRIVEN MOVE WAS LIKELY TO BE SHORTLIVED AMID PERSISTENT OVERSUPPLY OF THE INDUSTRIAL METAL ON NEW YORK'S COMMODITY EXCHANGE THE ACTIVE DECEMBER COPPER FUTURES CONTRACT ADDED 115 CENTS TO SETTLE AT 7675 CENTS A POUND TRADERS SAID THAT THE MARKET HAD BEEN OVERSOLD GOING INTO YESTERDAY'S SESSION AND THAT THE METAL'S RISE EARLY IN THE DAY FORCED DEALERS WITH SHORT POSITIONS OR BETS THAT THE PRICE WOULD DECLINE TO COVER WITH OFFSETTING POSITIONS VOLUME WAS LIGHT BECAUSE OF THE COLUMBUS DAY HOLIDAY THIS IS JUST A SHORTCOVERING RALLY THAT MIGHT TAKE THE MARKET UP TO 78 CENTS OVER THE NEXT DAY OR TWO SAID JOHN O'CONNELL VICE PRESIDENT OF RESEARCH FOR REFCO IN NEW YORK MR O'CONNELL SAID THAT LONGERTERM THE COPPER MARKET HAD YET TO SHAKE ITS BEARISH FUNDAMENTALS SUCH THAT THE METAL USED BROADLY IN INDUSTRY WOULD LIKELY REMAIN IN A NARROW TRADING RANGE BETWEEN 73 AND 75 CENTS A POUND NEAR SIXYEAR LOWS HE NOTED FOR INSTANCE THAT STOCKS OF COPPER IN THE BIG LONDON METALS EXCHANGE OR LME WERE NEAR 15YEAR HIGHS AND THAT ECONOMIC ACTIVITY IN WESTERN AND EASTERN EUROPE HAD YET TO PICK UP MERCEDESBENZ IS LAYING OFF TENS OF THOUSANDS OF WORKERS AND THERE'S GOING TO BE MORE OF THAT TO COME FROM THE REST OF THE INDUSTRIAL SECTOR IN EUROPE HE PREDICTED NO ENCOURAGING MACROECONOMIC NEWS WAS LIKELY TO BE FORTHCOMING FROM JAPAN EITHER HE SAID THE REFCO ANALYST SAID THAT PRIOR TO MONDAY'S RALLY THE COPPER MARKET HAD BEEN UNDER PRESSURE AS A RESULT OF THE RECENT RESOLUTION AT THE LME OF A TECHNICAL SQUEEZE LAST MONTH OFFICIALS AT THE LONDON EXCHANGE MOVED TO ALLEVIATE THE SQUEEZE AN UNUSUAL SITUATION IN COMMODITY MARKETS IN WHICH SPOT PRICES TRADE ATER FUTURES PRICES IN NORMAL MARKETS SPOT PRICES SHOULD TRADE AT A DISCOUNT TO FUTURES PRICES BECAUSE OF THE TRANSPORT AND FINANCE COSTS ON METAL QUOTED FOR FUTURE DELIVERY TO COUNTER THE SQUEEZE WHICH RESULTED IN SPOT PRICES TRADING AT A PREMIUM OF THREE CENTS A POUND OR MORE THAN 3 OVER FUTURE PRICES IN EARLY SEPTEMBER THE LME RULED THAT IT WOULD LIMIT THE PREMIUM TO 023 CENT A POUND OR A QUARTER PERCENT ALLOWING METAL MERCHANTS HOLDING SHORT POSITIONS TO COVER THOSE POSITIONS AT MUCH REDUCED LOSSES AS A RESULT MERCHANTS THEN BOUGHT SPOT METAL TO MEET DELIVERY DEMANDS AND SOLD IT FORWARD FORCING FUTURES PRICES LOWER IN LONDON AND NEW YORK TRADERS HAVE SAID THAT THIS MOVE COMBINED WITH PERSISTENTLY HIGH LEVELS OF OFFICIAL COPPER INVENTORIES IN BOTH NEW YORK AND LONDON HAVE ROBBED THE STRUGGLING FUTURES MARKET OF ANY MAJOR FORWARD MOMENTUM SOME ANALYSTS HOWEVER SAY THAT ANY FURTHER DROP IN PRICES WILL SPARK BARGAIN HUNTING AND LEAD TO A GRADUAL RISE IN COPPER FUTURES OVER THE NEXT FEW MONTHS EVEN IF PRICES WERE TO FALL AS LOW AS 65 CENTS A POUND WE DOUBT IF THEY WILL STAY THERE FOR VERY LONG WROTE TED ARNOLD SENIOR METALS ANALYST FOR MERRILL LYNCH IN LONDON IN THE BROKERAGE'S MOST RECENT MONTHLY BASE & PRECIOUS METALS REPORT THE PRICE MECHANISM SHOULD QUICKLY REVERSE SUCH VERY LOW PRICES WITHIN A MATTER OF ONE OR TWO MONTHS AT MOST MR ARNOLD PREDICTED THAT JAPANESE COPPER SMELTERS WILL SOON CUT BACK PRODUCTION SUBSTANTIALLY BY AROUND 100000 TO POSSIBLY 120000 METRIC TONS A YEAR THAT CUTBACK SHOULD HELP ALLEVIATE GLUTTED CONDITIONS HE WROTE ADDING WE FIND IT VERY DIFFICULT TO BE VERY BEARISH ABOUT COPPER FOR VERY LONG WE WOULD BE LOOKING TO BE A FORWARD BUYER IN COMING WEEKS ONCE THE BEARS HAVE EXHAUSTED THEMSELVES MR ARNOLD SAID THAT ANY UPSIDE MOVE FOR NOW IS PROBABLY LIMITED TO THE 78 TO 80 CENTS A POUND AREA ABOVE THAT LEVEL WE ARE LIKELY TO SEE FRESH PRODUCER AND MERCHANT SELLING IN OTHER COMMODITY MARKETS GRAINS & SOYBEANS PRICES OF CORN AND SOYBEAN FUTURES CONTRACTS ROSE IN ANTICIPATION OF THE AGRICULTURE DEPARTMENT LOWERING ITS MONTHLY US HARVEST FORECASTS AFTER THE CLOSE OF TRADING TODAY BASED ON OCT 1 CONDITIONS THE DEPARTMENT IS WIDELY EXPECTED TO TRIM ITS CORN HARVEST FORECAST TO ABOUT 707 BILLION BUSHELS FROM ITS ONEMONTHOLD FORECAST FOR A 723 BILLION BUSHEL CROP TRADERS ALSO EXPECT THE DEPARTMENT TO LOWER ITS SOYBEAN HARVEST FORECAST TO ABOUT 188 BILLION BUSHELS FROM ITS SEPTEMBER FORECAST OF 191 BILLION BUSHELS IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR DECEMBER DELIVERY ROSE 275 CENTS A BUSHEL TO SETTLE AT 2445 A BUSHEL THE SOYBEAN CONTRACT FOR NOVEMBER DELIVERY ROSE SIX CENTS A BUSHEL TO SETTLE AT 61475 A BUSHEL ENERGY CRUDE OIL AND PRODUCT FUTURES PRICES MOVED HIGHER YESTERDAY IN LIGHT TRADING TRADERS SAID MARKET SENTIMENT WAS BULLISH BUT THERE WAS AN ABSENCE OF ANY MAJOR NEWS SOME ANALYSTS AND TRADERS FELT THE WEEKLONG RISE IN FUTURES PRICES MAY BE APPROACHING AN END WE'RE AT THE HIGH END OF THE RANGE NOW SAID ONE ANALYST FOR A MAJOR INVESTMENT HOUSE I THINK PEOPLE ARE GOING TO BE INTERESTED IN SELLING ANALYSTS SAY THERE IS AN AMPLE SUPPLY OF CRUDE OIL AND HEATING OIL ESPECIALLY BECAUSE NO COLD SPELL HAD YET EMERGED IN THE NORTHEASTERN PART OF THE US ALSO TRADERS DISCOUNTED THE INFLUENCE OF NEWS ABOUT THE POSSIBLE TIGHTENING OF SANCTIONS AGAINST LIBYA AND THE DISRUPTION OF NIGERIAN SUPPLIES AS REPORTED BRITAIN FRANCE AND THE US WERE HOPING TO PUSH FOR A UN SECURITY COUNCIL VOTE ON TIGHTER SANCTIONS AGAINST LIBYA AS EARLY AS THURSDAY IN NIGERIA THE NATIONAL PETROLEUM CORP IN A WIDELY ANTICIPATED MOVE GAVE 90DAY NOTICE OF CANCELLATION OF ALL TERM CRUDE CONTRACTS OIL INDUSTRY SOURCES SAID BUT TRADERS SAID THE MARKET WAS A LITTLE JUMPY ON A REPORT THAT CHIEF UNITED NATIONS WEAPONS INSPECTOR ROLF EKEUS AND IRAQI DEPUTY PRIME MINISTER TARIQ AZIZ ARE TO RESUME TALKS IN MIDNOVEMBER ABOUT THE POSSIBLE LIFTING OF UN SANCTIONS AGAINST IRAQ 9310120133 931012 BELLSOUTH UNIT TO REDEEM DEBT ATLANTA BELLSOUTH TELECOMMUNICATIONS INC A UNIT OF TELECOMMUNICATIONS COMPANY BELLSOUTH CORP SAID IT WILL REDEEM TWO DEBENTURE ISSUES NOV 15 THE ISSUES ARE 450 MILLION OF 40YEAR 825 DEBENTURES DUE 2016 AT 10399 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST AND 250 MILLION OF 38YEAR 825 DEBENTURES DUE 2015 AT 10425 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST 9310120132 931012 MINI PRODUCTS HAVE MINI SALES BY EBEN SHAPIRO ELFKINS COOKIES THEY'RE BITESIZED THEY'RE FILLED WITH CREAM AND SHAPED LIKE ELVES THEY'RE TINY THEY'RE HISTORY KEEBLER CO DROPPED ITS LINE OF TINY ELFKINS COOKIES EARLIER THIS YEAR AFTER SALES PLUMMETED AND CONSUMERS RUSHED TO EMBRACE THE NEXT FOOD FAD WE'RE NOT THE ONLY ONE WITH MINI PROBLEMS A KEEBLER SPOKESMAN SAYS DEFENSIVELY INDEED MINIATURIZED RENDITIONS OF FAMILIAR BRANDS ARE GENERATING DIMINISHING RETURNS FOR MOST FOOD MARKETERS DATA PROVIDED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE SHOW THAT THINKING SMALL IS CLEARLY ON THE WAY OUT SALES OF MARS INC'S RONDOS ICECREAM TREATS SHRANK 625 TO 68 MILLION FOR THE 52 WEEKS ENDED AUG 15 SALES OF UNITED BISCUITS PLC'S KEEBLER'S MINICHIPS AND MINIPECAN COOKIES BOTH FELL BY MORE THAN 40 DURING THE SAME PERIOD SALES OF RJR NABISCO HOLDINGS CORP'S MINIOREO'S HAVE PLUNGED BY 566 TO 21 MILLION EVEN SALES FOR THE GRANDDADDY OF THE MINIS NABISCO'S RITZ BITS HAVE FALLEN 19 TO 77 MILLION DURING THE PAST 52 WEEKS THE SUCCESS OF RITZ BITS INTRODUCED IN 1987 BEGAT A FLURRY OF IMITATORS NEW PRODUCT NEWS SAYS 280 MINI PRODUCTS HAVE BEEN LAUNCHED SINCE 1989 WITH THE NUMBER OF INTRODUCTIONS PEAKING LAST YEAR AT 87 THE TREND IS NOT DEAD YET BUT IT'S ON ITS WAY OUT SAYS LYNN DORNBLASER PUBLISHER OF NEW PRODUCT NEWS THE PROLIFERATION OF METOO PRODUCTS REDUCED PEOPLE'S INTEREST IN BITESIZED OFFERINGS THE NOVELTY HAS WORN OFF SAYS THE KEEBLER SPOKESMAN ALSO PART OF THE INITIAL APPEAL WAS THE ILLUSION THAT EATING SMALLER PRODUCTS TRANSLATED INTO CONSUMING FEWER CALORIES BUT HUNGRY SNACKERS ENDED UP DEVOURING THE SMALLER SNACKS BY THE HANDFUL IT'S LIKE IF YOU SMOKE LOWTAR CIGARETTES AND YOU END UP SMOKING TWO PACKS A DAY INSTEAD OF ONE SAYS WENDY KIMBRELL EDITOR OF SNACK FOOD MAGAZINE IN CHICAGO FINALLY THE MINI VERSIONS OFTEN COST NEARLY TWICE AS MUCH PER OUNCE AS THEIR REGULARSIZE PROGENITORS WITH PEOPLE BEING MORE FRUGAL THAT'S A PROBLEM SAYS THE KEEBLER SPOKESMAN NABISCO HASN'T INTRODUCED A MINI PRODUCT SINCE EARLY 1992 AND HAS DROPPED SUCH OFFERINGS AS HONEY MAID GRAHAM BITES AND TRISCUIT BITS AFTER DISAPPOINTING SALES THE COMPANY IS NOW FOCUSING ON FATFREE SNACKS SAYS A NABISCO SPOKESMAN MINI HAS RUN ITS COURSE AND WE'VE MOVED ON 9310120131 931012 TOYOTA PRESSURED BY HIGH YEN IS SEEN BUILDING NEW SEDAN AT KENTUCKY PLANT BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT TOYOTA MOTOR CORP PROMPTED BY THE STRONG YEN IS EXPECTED TO ANNOUNCE TODAY THAT IT WILL BUILD ITS NEW TOPOFTHELINE SEDAN AT ITS FACTORY IN GEORGETOWN KY SUCH A MOVE WOULD CONTINUE A RECENT TREND TOWARD INCREASED AUTO PRODUCTION IN THE US BY JAPANESE COMPANIES SEEKING TO DILUTE THE EFFECTS OF THE SURGING YEN WHICH HAS PUSHED ALL JAPANESE PRICES HIGHER TOYOTA ITSELF ANNOUNCED LAST MONTH THAT IT WILL INCREASE PRICES ON ITS 1994 MODELS BY AS MUCH AS A HEFTY 127 SHIFTING ADDITIONAL PRODUCTION TO THE US FROM JAPAN WOULD ALSO DEFUSE SOME POLITICAL PRESSURE DETROIT'S BIG THREE AUTO MAKERS COULD FILE DUMPING CHARGES AGAINST JAPANESE AUTO MAKERS IF PRICES OF CARS BUILT IN JAPAN DON'T GO UP SUBSTANTIALLY TOYOTA IS EXPECTED TO ASSEMBLE IN GEORGETOWN THE REPLACEMENT FOR THE CRESSIDA SEDAN WHICH THE AUTO MAKER STOPPED SELLING IN THE US LAST YEAR TOYOTA WOULDN'T SAY WHEN THE CAR WILL BE INTRODUCED IN THE US MARKET THE NEW CAR MAY BE CALLED THE AVALON ANALYSTS SAY LAST YEAR TOYOTA EXPORTED 612000 VEHICLES TO THE US THIS YEAR IT EXPECTS TO EXPORT 525000 CARS AND TRUCKS TO THE US THE CAR MAKER BUILDS 240000 VEHICLES ANNUALLY AT ITS GEORGETOWN FACILITY TOYOTA IS EXPANDING ITS PRODUCTION CAPACITY AT THE FACTORY BY 200000 VEHICLES THE EXPANSION WILL BE COMPLETE NEXT YEAR THE AUTO MAKER SAID OTHER JAPANESE AUTO MAKERS HAVE ALSO SAID THEY WILL BOOST PRODUCTION OF NORTH AMERICANMADE VEHICLES HONDA MOTOR CO SAID LAST MONTH IT PLANS TO EVENTUALLY STOP EXPORTS TO THE US OF ACCORD AND CIVIC CARS THE AUTO MAKER INSTEAD WILL SELL IN THE US ONLY THOSE MODELS MADE IN ITS NORTH AMERICAN FACTORIES THE AUTO MAKER HAS ALSO SIGNALED THAT IT WILL BEGIN BUILDING LUXURY ACURAS IN THE US WITHIN THE NEXT THREE TO FIVE YEARS GERMAN AUTO MAKERS MERCEDESBENZ AG A UNIT OF DAIMLERBENZ AG AND BAYERISCHE MOTOREN WERKE AG HAVE ALSO ANNOUNCED PLANS TO ASSEMBLE CARS IN THE US THE CAR MAKERS ARE SEEKING REFUGE FROM THE RISING COST OF PRODUCTION IN GERMANY WHERE WAGES ARE HIGH VACATIONS LONG AND UNIONS POWERFUL 9310120130 931012 CORRECTIONS & AMPLIFICATIONS HONDA MOTOR CO SOLD 343017 ACCORDS FOR THE MODEL YEAR ENDED SEPT 30 IN AN ARTICLE WEDNESDAY THE AMOUNT WAS MISSTATED AS 393477 ACCORDS 9310120129 931012 INTERNATIONAL BRITAIN'S TRADE DEFICIT WIDENS LONDON BRITAIN REPORTED A MERCHANDISE TRADE DEFICIT OF 155 BILLION 238 BILLION IN JULY FOLLOWING A REVISED DEFICIT OF 123 BILLION IN JUNE THE CENTRAL STATISTICAL OFFICE ANNOUNCED THE JULY FIGURES ARE PROVISIONAL AND SEASONALLY ADJUSTED THEY REPRESENT THE FIRST MONTHLY REPORT OF BRITAIN'S TRADE WITH THE WHOLE WORLD SINCE DECEMBER 1992 9310120128 931012 INTERNATIONAL TI GROUP SELLS SOME BUSINESSES LONDON UNITED KINGDOM ENGINEERING COMPANY TI GROUP PLC SAID THAT IT SOLD A GROUP OF ELECTRONIC SYSTEMS BUSINESSES FROM THE FORMER DOWTY GROUP PLC FOR 40 MILLION 615 MILLION THE BUYER IS ULTRA ELECTRONICS LTD ULTRA IS A NEW COMPANY SET UP SPECIFICALLY TO BUY THE FORMER DOWTY BUSINESSES FROM TI AND IS BACKED BY VENTURE CAPITALISTS TI SAID TI SAID THE BUSINESSES IT SOLD ARE PRIMARILY FOCUSED ON THE AIRCRAFT AND ENGINE CONTROLS MARITIME ANTISUBMARINE WARFARE AND AVIONICSYSTEMS MARKETS 9310120127 931012 INTERNATIONAL WESTERN GERMAN RETAIL SALES WIESBADEN GERMANY WESTERN GERMAN RETAIL SALES FELL A REAL OR UNADJUSTED 04 DURING AUGUST FROM A YEAR EARLIER THE FEDERAL STATISTICS OFFICE REPORTED AUGUST RETAIL SALES FELL A REAL 85 FROM JULY THE AGENCY SAID THE RETAIL SALES INDEX STOOD AT 1092 IN AUGUST COMPARED WITH 1194 A MONTH EARLIER AND 1096 A YEAR EARLIER THE AGENCY SAID 9310120126 931012 FORECASTERS PREDICT ECONOMY IN 10 YEARS WON'T CHANGE MUCH WASHINGTON PRIVATE ECONOMIC FORECASTERS ASKED TO PEER 10 YEARS INTO THE FUTURE SAY THE US ECONOMY WON'T LOOK MUCH BETTER THAN IT DOES NOW ACCORDING TO A NEW SURVEY BY THE BLUE CHIP ECONOMIC INDICATORS NEWSLETTER THE CONSENSUS OF THE 51 ECONOMISTS IS THAT THE ECONOMY WILL GROW A MEAGER 26 A YEAR DURING THE NEXT 10 YEARS AND THAT THE UNEMPLOYMENT RATE WILL REMAIN ABOVE 6 THROUGH THE END OF THE 1990S THE AVERAGE RATE OF ECONOMIC GROWTH DURING THE PERIOD 19952004 IS EXPECTED TO BE ABOUT THE SAME AS IN THE 1980S BUT INFLATION AND INTEREST RATES ARE PROJECTED TO BE MUCH LOWER THE NEWSLETTER NOTED INFLATION IS PROJECTED TO STAY CLOSE TO CURRENT LEVELS IN THE LATTER HALF OF THE 1990S AND THE FIRST FEW YEARS OF THE NEXT CENTURY CONSUMER PRICES ARE EXPECTED TO CLIMB AN AVERAGE OF ABOUT 35 A YEAR SHORTTERM INTEREST RATES ARE EXPECTED TO RISE GRADUALLY MOVING ABOVE 4 IN 1995 TO AVERAGE 43 IN THE LATE 1990S THE YIELD ON LONGTERM BONDS ISSUED BY THE STRONGEST CORPORATIONS IS EXPECTED TO BOTTOM OUT NEXT YEAR AND RISE TO AN AVERAGE OF 74 FOR THE REST OF THE DECADE CONSENSUS FORECASTS THOUGH OFTEN MORE RELIABLE THAN ANY PARTICULAR ECONOMIST'S TEND TO PREDICT THAT THE FUTURE WILL LOOK MUCH LIKE THE RECENT PAST AND FREQUENTLY MISS MAJOR TURNING POINTS IN THE ECONOMY THE CONSENSUS OR AVERAGE FORECAST ALSO MASKS SUBSTANTIAL DISAGREEMENT AMONG THE ECONOMISTS THE 10 MOST OPTIMISTIC IN THE SURVEY PREDICT THE ECONOMY WILL GROW AT A 34 ANNUAL RATE IN THE LATTER HALF OF THE 1990S WHILE THE 10 MOST PESSIMISTIC FORESEE 18 GROWTH FOR THE NEARTERM THE BLUE CHIP CONSENSUS HAS THE ECONOMY GROWING BY 27 THIS YEAR AND NEXT TOO SLOW TO GET THE JOBLESS RATE DOWN THE UNEMPLOYMENT RATE NEXT YEAR IS PROJECTED TO AVERAGE 66 NOT MUCH DIFFERENT FROM SEPTEMBER'S 67 CONSUMER PRICES ARE PROJECTED TO RISE 3 IN 1993 AND 31 IN 1994 9310120124 931012 GRC UNIT WINS CONTRACTS VIENNA VA GRC INTERNATIONAL INC THE DEFENSE CONTRACTOR SAID ITS GENERAL RESEARCH CORP UNIT WON FIVE DEFENSE DEPARTMENT CONTRACTS THAT INCLUDING OPTIONS HAVE AN ESTIMATED POTENTIAL VALUE OF 37 MILLION OVER THE NEXT FIVE YEARS THE COMPANY SAID THE CONTACTS INCLUDE A 16 MILLION INFORMATION MANAGEMENT SYSTEM FOR THE AIR FORCE FOREIGN AEROSPACE SCIENTIFIC AND TECHNICAL CENTER AND A 6 MILLION PACT FOR TECHNICAL SUPPORT FOR THE AIR FORCE INDUSTRIAL BASE PROGRAM 9310120123 931012 MCDERMOTT UNIT GETS CONTRACT NEW ORLEANS MCDERMOTT INTERNATIONAL INC SAID A SUBSIDIARY SIGNED A 46 MILLION CONTRACT TO DO OIL AND NATURALGAS SERVICES WORK FOR ENSERCH EXPLORATION PARTNERS LTD THE UNIT MCDERMOTT INC WILL INSTALL PIPELINES AND PRODUCTION EQUIPMENT IN THE GULF OF MEXICO COMPLETION OF THE PROJECT IS EXPECTED IN 1995 MCDERMOTT IS AN ENERGY SERVICES COMPANY ENSERCH EXPLORATION IS AN OIL AND GAS COMPANY 9310120122 931012 ACTUARIES DEFEND PROCESS ASSUMPTIONS USED IN REVIEW OF CLINTON HEALTH PLAN BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A GROUP OF INDEPENDENT ACTUARIES THAT REVIEWED ASPECTS OF THE CLINTON HEALTHCARE PROPOSAL HAS FORMALLY CERTIFIED THAT THE METHODS AND ASSUMPTIONS USED TO CALCULATE THE PRIVATESECTOR PREMIUMS IN THE PLAN WERE SOUND AND REASONABLE YET IN A LETTER TO SENIOR WHITE HOUSE AIDE IRA MAGAZINER THE GROUP OF SIX ACTUARIES AND ONE ECONOMIST ALSO WAS CAREFUL TO NOTE THAT ITS REVIEW DIDN'T COVER THE COST OR SAVINGS ESTIMATES FOR THE ENTIRE PLAN MOREOVER THE LETTER SAID POLICY ISSUES WERE OUTSIDE THE SCOPE OF OUR ROLE THE ACTUARIES FOUND THEMSELVES IN THE SPOTLIGHT AFTER PRESIDENT CLINTON MENTIONED THE GROUP IN HIS HEALTHCARE ADDRESS TO CONGRESS LAST MONTH SO THEN WE GAVE THESE NUMBERS TO ACTUARIES FOR MAJOR ACCOUNTING FIRMS AND MAJOR FORTUNE 500 COMPANIES WHO HAVE NO STAKE IN THIS OTHER THAN TO SEE THAT OUR EFFORTS SUCCEED SO I BELIEVE OUR NUMBERS ARE GOOD AND ACHIEVABLE MR CLINTON SAID IN INTERVIEWS AFTER THE SPEECH SEVERAL OF THE ACTUARIES SAID THEY THOUGHT PEOPLE COULD HAVE MISUNDERSTOOD THEIR ROLE IN LIGHT OF THE PRESIDENT'S REMARKS SOME OF THEM SAID THEY WEREN'T ENTIRELY COMFORTABLE WITH ONE OF THE MAJOR POLICY DECISIONS EMBEDDED IN THE CLINTON PLAN THE SWIFTNESS WITH WHICH CAPS ON PRIVATESECTOR HEALTH SPENDING WOULD BE IMPOSED IN THEIR LETTER TO MR MAGAZINER THE ACTUARIES SAID THEIR FOCUS WAS ON EVALUATING THE COST OF THE FEDERALLY GUARANTEED BENEFITS PACKAGE PUT AT AN AVERAGE OF ABOUT 4200 PER FAMILY THEY ALSO CONCENTRATED ON THE COST OF GOVERNMENT SUBSIDIES THAT WOULD HELP SMALL BUSINESSES AND LOWINCOME INDIVIDUALS PAY FOR THE BENEFITS PACKAGE THE ACTUARIES SAID HOWEVER THAT OUR REVIEW OF THE COST OF SUBSIDIES WAS LESS COMPREHENSIVE BECAUSE OF THE NATURE OF THE DATABASES USED BY THOSE PERFORMING THE CALCULATIONS THE ACTUARIES ALSO USED THE LETTER TO SPELL OUT WHAT THEY DIDN'T DO SUCH AS ADDRESSING THE IMPLICATIONS OF ALTERING MEDICAID AND MEDICARE OR ASSESSING THE POSSIBLE SAVINGS FROM MANAGED COMPETITION OVERALL THE LETTER PRAISED THE PROCESS FOR DEVELOPING THE COST ESTIMATES AS VERY THOROUGH THE SEVEN MEMBERS OF THE GROUP ARE RICHARD OSTUW THE CHIEF ACTUARY AT TOWERS PERRIN IN CLEVELAND HOWARD ATKINSON WHO RUNS HIS OWN ACTUARIAL FIRM IN SUBURBAN WASHINGTON JOHN BERTKO A PRINCIPAL WITH COOPERS & LYBRAND IN SAN FRANCISCO BRENT GREENWOOD A PRINCIPAL AT TOWERSPERRIN UNIT TILLINGHAST IN MINNEAPOLIS RICHARD HELMS AN EXECUTIVE WITH PRINCIPAL FINANCIAL GROUP IN DES MOINES IOWA KENNETH PORTER CHIEF ACTUARY AT DUPONT CO IN WILMINGTON DEL AND JACK RODGERS A HEALTH ECONOMIST WITH PRICE WATERHOUSE IN WASHINGTON SEPARATELY THE WHITE HOUSE SAID IT HAD NO INTENTION OF REDUCING THE BENEFITS THAT LOWINCOME AND DISABLED PEOPLE NOW RECEIVE UNDER THE MEDICAID PROGRAM THE NEW YORK TIMES REPORTED YESTERDAY THAT COVERAGE OF SOME EXTRA SERVICES SUCH AS TRANSPORTATION ASSISTANCE AND SPECIAL EDUCATION SERVICES COULD BE JEOPARDIZED UNDER THE CLINTON HEALTH PLAN BECAUSE THEY AREN'T INCLUDED IN THE FEDERALLY GUARANTEED BENEFITS PACKAGE A SEPT 7 DRAFT OF THE HEALTH PLAN MENTIONED THE POSSIBILITY OF PROVIDING GRANTS TO STATE GOVERNMENTS TO FINANCE SUCH SERVICES ADMINISTRATION OFFICIALS SAID THEY HAVE ALREADY CALCULATED THE COST OF INCLUDING THESE SERVICES FOR THE MEDICAID POPULATION THEY SAID THEY'RE NOW TRYING TO FIGURE OUT HOW TO ADMINISTER THEM THERE IS NO WAY WE ARE GOING TO TAKE AWAY MEDICAID BENEFITS THAT PEOPLE ALREADY HAVE SAID KEVIN ANDERSON A WHITE HOUSE SPOKESMAN 9310120121 931012 POLITICS & POLICY HAITI THREATENED WITH NEW SANCTIONS AFTER MOBS ATTACK AMERICANS AT PORT BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION WITH SOMALIA ON ITS MIND WARNED THAT IT WOULD PUSH TO REIMPOSE UNITED NATIONS ECONOMIC SANCTIONS AGAINST HAITI AND HALT A US DEPLOYMENT UNLESS THE HAITIAN MILITARY COOPERATED IN A PLAN TO RESTORE DEMOCRATIC RULE SECRETARY OF STATE WARREN CHRISTOPHER IN A STATEMENT ISSUED YESTERDAY AFTERNOON SAID THE US WAS ASKING THE UN SECRETARY GENERAL FOR AN URGENT REPORT ON THE SITUATION IN HAITI AND FOR PROMPT CONSIDERATION OF PENALTIES INCLUDING SANCTIONS IF THE THREATENING ATMOSPHERE IN HAITI DIDN'T CHANGE MARKEDLY LAST NIGHT THE SECURITY COUNCIL CALLED FOR SUCH A REPORT AND WARNED THAT NONCOMPLIANCE WITH THE AGREEMENT TO RESTORE DEMOCRACY WOULD LEAD TO THE REIMPOSITION OF SANCTIONS MR CHRISTOPHER'S COMMENTS REFLECT MOUNTING CONCERNS OVER THE POSSIBILITY OF US CASUALTIES ON THE HEELS OF AN ATTACK IN SOMALIA THAT INFLICTED 100 CASUALTIES ON US ARMY RANGERS A WEEK EARLIER YESTERDAY'S WARNING CAME AFTER A SHIP CARRYING 200 US SOLDIERS PART OF AN INTERNATIONAL PEACEKEEPING MISSION TO HAITI WAS UNABLE TO DOCK IN PORTAUPRINCE AS THE SHIP WAITED IN VAIN FOR A BERTH GUNMEN BELIEVED TO BE POLICE AUXILIARIES ROUGHED UP US DIPLOMATS AND JOURNALISTS ON SHORE ACCORDING TO WIRE SERVICE REPORTS WE BELIEVE THE CURRENT SITUATION DOES NOT JUSTIFY THE DOCKING OF THE SHIP MR CHRISTOPHER SAID A US OFFICIAL IN WASHINGTON SAID THAT THE US CHARGE D'AFFAIRES VICKI HUDDLESTON WHO HAD BEEN THREATENED BY THE CROWD AND DANTE CAPUTO THE UN SPECIAL ENVOY IN HAITI WERE TO MEET LAST NIGHT WITH GEN RAOUL CEDRAS THE HAITIAN ARMY COMMANDER WHO IS TO RESIGN FRIDAY UNDER THE AGREEMENT AT THE MEETING THEY PLANNED TO ASK GEN CEDRAS IF HAITI'S MILITARY WAS STILL WILLING TO ABIDE BY AN ACCORD SIGNED LAST JULY IN NEW YORK THAT SPELLED OUT NINE STEPS THAT ARE SUPPOSED TO LEAD TO THE RETURN OF HAITI'S ELECTED PRESIDENT JEANBERTRAND ARISTIDE BY OCT 30 THIS IS EITHER A TEST OF WILL ON THEIR THE MILITARY'S PART OR THEY'VE DECIDED TO ABROGATE THE ACCORD IN WHICH CASE THEY'RE IN A MESS SAID THE US OFFICIAL WITH THE ADMINISTRATION STILL REELING FROM CONGRESSIONAL CRITICISM OVER ITS PEACEKEEPING ROLE IN SOMALIA AND MOUNTING QUESTIONS ABOUT THE MISSION IN HAITI MR CHRISTOPHER TRIED TO EMPHASIZE THE DIFFERENCE IN THE TWO OPERATIONS HE SAID THAT THE US MILITARY PERSONNEL EN ROUTE TO HAITI ARE NOT GOING TO PERFORM A PEACEKEEPING MISSION RATHER HE SAID THEY ARE PART OF A CORPS OF MILITARY ENGINEERS AND TRAINERS THAT WOULD HELP WITH THE PROFESSIONALIZATION OF THE MILITARY AND POLICE AND ASSIST ON CONSTRUCTION PROJECTS UNDER THE UN PLAN THE US IS SUPPOSED TO SUPPLY ABOUT 700 PEOPLE OUT OF A 1600MEMBER INTERNATIONAL FORCE BUT IT WAS CLEAR YESTERDAY THAT THIS DISTINCTION WASN'T BEING MADE BY THE MOB IN PORTAUPRINCE WHICH SHOUTED THAT THEY WOULD MAKE HAITI INTO A SECOND SOMALIA FOR US FORCES SOME US CRITICS OF THE OPERATION SAY IT IS NAIVE TO IMAGINE THAT SUCH A LIGHTLY ARMED FORCE COULD REFORM AN ENTRENCHED MILITARY THAT IS RIDDLED WITH CORRUPTION AND VIOLENTLY OPPOSED TO THE RETURN OF MR ARISTIDE WHO WAS OUSTED IN A BLOODY COUP IN SEPTEMBER 1991 MINDFUL OF THE HOSTILITY THE US ENCOUNTERED IN SOMALIA MR CHRISTOPHER SAID WE INSIST THAT THE HAITIAN MILITARY AND POLICE AUTHORITIES CREATE A PERMISSIVE ENVIRONMENT AND PERMIT THE PEACEFUL ENTRY INTO HAITI OF THE UN FORCE WHICH HE REFERRED TO AS AN INTERNATIONAL CONTINGENT HE SAID SUCH AN ENVIRONMENT HAD BEEN AGREED TO BY GEN CEDRAS IN JULY AND THAT THESE PROMISES HAVE NOT BEEN KEPT IN HIS TOUGHLY WORDED STATEMENT MR CHRISTOPHER TRIED TO STRIKE A BALANCE BETWEEN UNDERSCORING US SUPPORT FOR MR ARISTIDE'S RETURN AND MAKING CLEAR THAT PENALTIES WILL BE IMPOSED IF THE OPERATION IS SCUTTLED HE SAID THAT IF UN SANCTIONS LIFTED LAST SUMMER AFTER THE ACCORD WAS SIGNED ARE REIMPOSED THAT HAITI'S MILITARY WILL BEAR THE BURDEN OF THE CONSEQUENCES THAT WILL FOLLOW 9310120120 931012 WHAT'S NEWS WORLDWIDE A MILITARYBACKED MOB BLOCKED US TROOPS FROM LANDING IN HAITI A CROWD OF ARMED SUPPORTERS OF HAITI'S MILITARY REGIME BARRED 200 AMERICAN SOLDIERS FROM GOING ASHORE BEAT UP FOREIGN JOURNALISTS THREATENED US DIPLOMATS AND TOOK CONTROL OF STATERUN RADIO THE MELEE IN PORTAUPRINCE WAS A DRAMATIC CHALLENGE TO A UN PEACE PLAN THAT CALLS FOR OUSTED PRESIDENT ARISTIDE TO RETURN TO POWER THIS MONTH THE BAND OF 25 TO 50 PLAINCLOTHES POLICE AUXILIARIES SHOUTED GET OUT OF OUR COUNTRY AND WE'RE GOING TO MAKE A SECOND SOMALIA HERE AS THEY ROVED THROUGH THE CAPITAL SECRETARY OF STATE CHRISTOPHER AND THE UN SECURITY COUNCIL WARNED THAT IF ORDER WASN'T RESTORED SANCTIONS WOULD BE REIMPOSED THE US VESSEL THAT WAS PREVENTED FROM DOCKING IS PART OF A UN PEACEKEEPING EFFORT TO HELP TRAIN HAITI'S POLICE AND ARMY AND TO REBUILD ROADS AND BRIDGES UN OFFICIALS WELCOMED A CEASEFIRE BY SOMALI CLAN LEADER AIDID AND CONTACTS WERE UNDER WAY TO FIND A POLITICAL SOLUTION IN SOMALIA MEANWHILE US AERIAL GUNSHIPS FIRED AT MOCK TARGETS IN AN UNPOPULATED AREA NEAR MOGADISHU AND US PLANES FLEW OVER THE CITY AN AIDID AIDE CALLED THE ACTIONS A PROVOCATION YELTSIN ARRIVED IN JAPAN FOR A TWODAY SUMMIT HIS FIRST TRIP OUTSIDE MOSCOW SINCE HIS GOVERNMENT FORCES CRUSHED A HARDLINE REBELLION A WEEK AGO BEFORE LEAVING THE RUSSIAN CAPITAL YELTSIN TOLD REPORTERS HE HOPES TOKYO DOESN'T SPOIL THE VISIT BY BRINGING UP A LONGSTANDING DISPUTE OVER THE KURIL ISLANDS WESTERN BANKERS SAID RUSSIA'S REFUSAL TO WAIVE ITS SOVEREIGN IMMUNITY TO LEGAL ACTION HAS ADDED NEW DELAYS TO AN ACCORD FOR RESTRUCTURING 26 BILLION IN FORMER SOVIET DEBT RUSSIA'S DEPUTY PRIME MINISTER AC KNOWLEDGED THE DISAGREEMENT COULD POSTPONE RUSSIA'S REPAYMENT OF 500 MILLION IN INTEREST ARREARS TWO RESEARCHERS IN THE US WON THE NOBEL PRIZE IN MEDICINE FOR DISCOVERING THAT GENES COULD BE SPLIT OPENING THE WAY FOR BETTER TREATMENT OF CANCER AND HEREDITARY DISEASES RICHARD J ROBERTS OF BRITAIN AND AMERICAN PHILLIP A SHARP USED A COLD VIRUS AS A MODEL TO PROVE THAT A GENE COULD BE MADE UP OF SEVERAL SEPARATED SEGMENTS SOUTH AFRICA'S PRESIDENT WARNED THAT THE COUNTRY MAY HAVE TO HOLD A REFERENDUM UNLESS CONSERVATIVE BLACK AND WHITE GROUPS SUPPORT AGREEMENTS REACHED DURING DEMOCRACY TALKS IT WAS THE FIRST TIME DE KLERK ACKNOWLEDGED THAT DEMOCRACY NEGOTIATIONS MIGHT NOT PRODUCE AN ACCORD ACCEPTABLE TO THE MAJORITY OF POLITICAL LEADERS THE PLO'S CENTRAL COUNCIL ELECTED PLO CHAIRMAN ARAFAT AS HEAD OF THE PALESTINIAN NATIONAL AUTHORITY TO BE ESTABLISHED IN THE ISRAELI OCCUPIED TERRITORIES WITHIN TWO MONTHS THE COUNCIL ALSO RATIFIED THE PLO'S PEACE PACT WITH ISRAEL SEPARATELY TWO SHIITE MUSLIM REBEL GROUPS ATTACKED AN ISRAELICONTROLLED SECTOR OF SOUTH LEBANON UN PEACEKEEPERS ACCUSED THE WARRING SIDES IN BOSNIA OF DELIBERATELY HINDERING RELIEF OPERATIONS AIMED AT BUILDING UP WINTER SUPPLIES IN BESIEGED AREAS IN CROATIA MEANWHILE PRESIDENT TUDJMAN THREATENED TO EJECT UN PEACEKEEPING TROOPS AFTER NOV 30 IF THEY CONTINUE TO ALLOW SERB FORCES TO HOLD ONETHIRD OF CROATIA A NORWEGIAN PUBLISHER WAS SHOT AND WOUNDED MARKING THE THIRD ATTACK AGAINST SOMEONE INVOLVED IN FOREIGN EDITIONS OF RUSHDIE'S THE SATANIC VERSES OSLO POLICE SAID IT WAS TOO EARLY TO TELL WHETHER THE SHOOTING WAS LINKED TO THE NOVEL WHICH PROMPTED IRAN'S LATE AYATOLLAH KHOMEINI TO ISSUE A DEATH ORDER AGAINST RUSHDIE ALGERIA EXECUTED 13 MUSLIM FUNDAMENTALISTS THE LARGEST NUMBER TO GO BEFORE THE FIRING SQUAD IN 20 MONTHS OF VIOLENCE AN ADDITIONAL 240 MEN ARE EITHER ON DEATH ROW OR ARE BEING HUNTED AS TERRORISTS THE GOVERNMENT'S NAME FOR ARMED MUSLIM MILITANTS SEEKING TO INSTALL AN ISLAMIC STATE JACK KEVORKIAN WAS ORDERED TO FACE A SECOND TRIAL ON A CHARGE OF ASSISTING IN A SUICIDE A MICHIGAN JUDGE RULED THAT THE RETIRED PATHOLOGIST SHOULD STAND TRIAL IN THE SUICIDE OF A 73YEAROLD MAN ON SEPT 9 THE SAME DAY KEVORKIAN WAS ORDERED TO STAND TRIAL IN THE DEATH OF ANOTHER MAN PEACE TALKS HAVE BROKEN DOWN BETWEEN THE NICARAGUAN GOVERNMENT AND THE COUNTRY'S LEADING GUERRILLA COMMANDER RAISING THE POSSIBILITY OF RENEWED COMBAT NICARAGUA'S INTERIOR MINISTER SAID 9310120119 931012 INTERNATIONAL BRITISH PRODUCER PRICES LONDON BRITISH PRODUCER OUTPUT PRICES ON AN UNADJUSTED BASIS WERE UNCHANGED IN SEPTEMBER FROM AUGUST WHILE PRODUCER INPUT PRICES DECLINED AN ADJUSTED 2 THE CENTRAL STATISTICAL OFFICE SAID UNADJUSTED OUTPUT PRICES IN SEPTEMBER ROSE 42 FROM A YEAR EARLIER THE FIGURES COMPARE WITH MARKET ESTIMATES OF A 01 RISE FROM AUGUST AND A 43 RISE FROM A YEAR EARLIER 9310120118 931012 WHO'S NEWS CISCO SYSTEMS INC CISCO SYSTEMS INC MENLO PARK CALIF JOHN T CHAMBERS SENIOR VICE PRESIDENT OF THIS MAKER OF COMPUTER NETWORKING PRODUCTS AND DAVID H RING A FORMER CISCO EXECUTIVE NOW A CONSULTANT WERE NAMED TO THE BOARD MR CHAMBERS 44 YEARS OLD AND MR RING 38 SUCCEED WILLIAM J O'MEARA AND ROBERT G SWEIFACH BOTH OF WHOM RETIRED FROM THE BOARD 9310120115 931012 GENERIC DRUG FIRMS STEP INTO LIMELIGHT WITH RICH OFFER FOR STAKE IN COPLEY BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL GENERIC DRUG COMPANIES ONCE DISMISSED AS COPYCATS AND CLOUDED BY INDUSTRY SCANDALS ARE SUDDENLY THE PHARMACEUTICAL INDUSTRY'S SUPERSTARS OVER THE WEEKEND HOECHST AG'S HOECHST CELANESE CORP OFFERED TO BUY A 51 STAKE IN COPLEY PHARMACEUTICAL INC FOR 546 MILLION THE EQUIVALENT OF ABOUT 20 TIMES COPLEY'S FISCAL 1993 SALES ANALYSTS NOTE SUCH DEALS NORMALLY COMMAND ONE TO FOUR TIMES SALES THE HIGH PRICE INDICATES THE GROWING IMPORTANCE OF THE GENERIC DRUG BUSINESS IN THE FASTCHANGING INCREASINGLY COSTCONSCIOUS PHARMACEUTICAL MARKET MYLAN LABORATORIES INC A GENERIC DRUG CONCERN IN PITTSBURGH HAS BEEN APPROACHED BY ABOUT HALF A DOZEN COMPANIES IN THE PAST THREE MONTHS ACCORDING TO ITS CHAIRMAN AND CHIEF EXECUTIVE ROY MCKNIGHT MR MCKNIGHT WHO WON'T GIVE SPECIFICS SAID MAJOR DRUG COMPANIES HAVE BEEN SEEKING TO TALK ABOUT VARIOUS ARRANGEMENTS GENERIC DRUG COMPANIES WEREN'T ALWAYS SO POPULAR JUST A FEW YEARS AGO A BRIBERY AND FRAUD SCANDAL INVOLVING A FEW COMPANIES TAINTED THE WHOLE INDUSTRY AND THE BIG RESEARCHBASED DRUG COMPANIES HAVE TRADITIONALLY LOOKED DOWN ON THEIR GENERIC COUNTERPARTS ANALYSTS SAY MOST OF THE LEADERS OF THE BRANDNAME DRUG COMPANIES ARE CEOS WHO GREW UP IN A CULTURE WHERE GENERICS WAS A BUSINESS TO BE LAUGHED AT SAID JACK LAMBERTON AN ANALYST AT NATWEST SECURITIES CORP ALL OF A SUDDEN THE FORCES FOR COSTCONTROL BECAME OVERWHELMING AND DRUG COMPANIES HAVE BEEN COMPELLED TO EMBRACE THE GENERIC BUSINESS THOSE FORCES HAVE BEEN DRIVEN BY THE EMERGENCE OF MANAGED CARE BIG INSTITUTIONAL BUYERS SUCH AS HEALTH MAINTENANCE ORGANIZATIONS THAT INCREASINGLY INFLUENCE PHYSICIANS' PRESCRIPTIONS A LARGE PART OF THEIR COSTCUTTING EFFORTS IS ENCOURAGING GENERIC DRUG USAGE PRESIDENT CLINTON'S HEALTHCARE PROPOSALS WOULD ACCELERATE THAT TREND WITH INCENTIVES TO ENCOURAGE THE USE OF GENERIC DRUGS ALSO FORCING DRUG COMPANIES TO LOOK AT THE GENERIC BUSINESS IS THE WAVE OF PATENT EXPIRATIONS THAT WILL POUND THE INDUSTRY THROUGH THE END OF THE DECADE FACING THE LOSS OF BILLIONS IN REVENUE TO GENERIC COMPETITION DRUG COMPANIES HAVE ADOPTED THE DEFENSIVE STRATEGY OF OFFERING THEIR OWN GENERIC VERSIONS COMPANIES THAT BUNDLE THEIR BRANDED PRODUCTS WITH GENERICS HAVE GREATER PRICING FLEXIBILITY AND ARE RECEIVED FAVORABLY BY MANAGEDCARE BUYERS BUT MOST MAJOR DRUG COMPANIES HAVEN'T HAD A LOT OF GENERIC DRUGS TO OFFER SETTING OFF A SCRAMBLE TO FILL THAT GAP MANY COMPANIES ARE SETTING UP UNITS TO DEVELOP GENERIC DRUGS MERCK & CO LAST YEAR STARTED WEST POINT PHARMA TO SELL GENERIC VERSIONS OF ITS DRUGS RHONEPOULENC RORER INC IN JULY SET UP A GENERIC DIVISION BUT COMPANIES THAT ARE BUILDING THEIR GENERIC BUSINESSES FROM SCRATCH ARE MOVING TOO SLOWLY ANALYSTS SAID IT TAKES THREE TO FIVE YEARS TO GET A GENERIC PRODUCT TO THE MARKET AND AMONG SOME COMPANIES THERE'S A SENSE THAT I DON'T HAVE THREE TO FOUR YEARS I MAY BE DEAD IN THREE TO FOUR YEARS SAID JERRY TREPPEL AN ANALYST AT KIDDER PEABODY A FASTER WAY INTO THE BUSINESS IS THROUGH AN ACQUISITION MARION MERRELL DOW INC LAST WEEK CLOSED ITS ACQUISITION OF RUGBYDARBY GROUP COS A BIG GENERIC DRUG DISTRIBUTOR MARION MERRELL PAID ABOUT 280 MILLION FOR THE COMPANY THE EQUIVALENT OF ONE YEAR OF RUGBYDARBY'S SALES FAR LESS THAN WHAT COPLEY COMMANDED MERCK IS LIKELY TO BUY OR MAKE AN EXCLUSIVE ARRANGEMENT WITH A GENERIC DRUG COMPANY SOON MR LAMBERTON PREDICTED A SPOKESMAN FOR MERCK SAID THE COMPANY IS KEENLY INTERESTED IN THE GENERIC BUSINESS BUT HASN'T SAID WHETHER IT WILL EXPAND THROUGH AN ACQUISITION OR SOME OTHER AVENUE ANALYSTS ARE MIXED IN THEIR VIEWS OF FUTURE TAKEOVER PROSPECTS FOR GENERIC DRUG COMPANIES MR LAMBERTON TINA RIZOPOULOSVALAURI OF PAINEWEBBER AND DAVID SAKS OF GRUNTAL & CO BELIEVE COPLEY IS JUST THE START OF CONSOLIDATION IN THE GENERIC DRUG INDUSTRY THE FUTURE IS IN GENERICS AND THERE ARE MAJOR DRUG COMPANIES OUT THERE ON THE VERGE OF DESPERATION THAT NEED TO GET AHEAD OF THE CURVE ON THAT MR LAMBERTON SAID ZENITH LABORATORIES INC IS RUMORED TO BE AN ACQUISITION TARGET AND BIOCRAFT LABORATORIES INC IS BEING SHOPPED AROUND HE SAID NEITHER COMPANY COULD BE REACHED FOR COMMENT TO THAT LIST MR SAKS ADDED WATSON PHARMACEUTICALS INC AND MARSAM PHARMACEUTICALS INC COMPANIES THAT HAVE HAD REGULATORY PROBLEMS OR DISPUTES AREN'T ATTRACTIVE ANALYSTS SAID AMONG THEM ARE BARR LABORATORIES INC CIRCA PHARMACEUTICALS INC FORMERLY BOLAR PHARMACEUTICALS CO AND PAR PHARMACEUTICAL INC NOW OWNED BY PHARMACEUTICAL RESOURCES INC MR SAKS IS CONFIDENT FUTURE DEALS WILL COMMAND THE TYPE OF MULTIPLES COPLEY IS GETTING BUT OTHERS ARE MORE SKEPTICAL MS RIZOPOULOSVALAURI OF PAINEWEBBER SAID THE COPLEY PRICE DOESN'T MAKE SENSE I CANNOT UNDERSTAND THE VALUATION PROVIDED IN THIS DEAL BUT SHE ADDED THE COPLEY DEAL WILL CERTAINLY ENHANCE THE NEGOTIATING POWER OF ACQUISITION TARGETS SOME ANALYSTS THINK THE COPLEY DEAL IS A COMPLETE ABERRATION AND WON'T LEAD TO ANY OTHERS I'VE TALKED TO MAJOR PHARMACEUTICAL COMPANIES AND THEY AREN'T INTERESTED IN ACQUIRING GENERIC DRUG COMPANIES BECAUSE THEY'RE OVERPRICED SAID D LARRY SMITH AN ANALYST AT HAMBRECHT & QUIST INDEPENDENT GENERIC COMPANIES ARE IN FOR A ROUGH TIME AHEAD AS BIG DRUG COMPANIES GET INTO THEIR BUSINESS HE PREDICTED THE DRUG COMPANIES ARE USING GENERIC DRUGS TO APPEAL TO MANAGEDCARE BUYERS HE SAID AND DON'T CARE ABOUT MAKING A PROFIT IN GENERIC DRUGS WHICH WILL MAKE COMPETING WITH THEM TOUGH EITHER HOECHST CELANESE IS VERY VERY BRILLIANT MR SMITH SAID OR THEY MADE A VERY QUESTIONABLE ACQUISITION 9310120114 931012 ECONOMY WORST OF WOES IN REAL ESTATE EASE FOR BANKS PROBLEM COMMERCIAL LOANS FELL 19 IN 1ST PERIOD NEW ANALYSIS INDICATES BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL THE WORST OF THE REALESTATE SLUMP APPEARS TO BE OVER AT LEAST FOR BANKS AFTER RISING STEADILY SINCE 1986 THE VOLUME OF COMMERCIAL REALESTATE LOANS THAT BANKS RESTRUCTURED OR FORECLOSED ON FELL 19 IN THE FIRST QUARTER OF 1993 ACCORDING TO A NEW ANALYSIS OF GOVERNMENT AND BANKING INDUSTRY DATA BY COOPERS & LYBRAND THE WORST IS OVER SAID BJORN HANSON HEAD OF REAL ESTATE FOR THE NEW YORKBASED ACCOUNTING AND CONSULTING FIRM THE TREND IS DECIDEDLY FAVORABLE GOING FORWARD BECAUSE MOST BANKS STOPPED LENDING TO DEVELOPERS IN THE LATE 1980S MOST OF THE SHORTTERM FLOATINGRATE CONSTRUCTION LOANS THEY MADE ALREADY HAVE COME DUE ACCORDING TO COOPERS & LYBRAND BANKS AND INSURANCE COMPANIES HAVE FORECLOSED ON ABOUT 170 BILLION OR 13 OF THE ROUGHLY 13 TRILLION IN COMMERCIAL REAL ESTATE LOANS THEY MADE BETWEEN 1984 AND 1990 AND RESTRUCTURED ABOUT 132 BILLION OR 10 ALL OF THE DRAGONS THAT WERE ROARING AROUND TWO YEARS AGO HAVE BEEN BOXED SAID ROBERT MCCORMACK EXECUTIVE VICE PRESIDENT IN CHARGE OF REAL ESTATE AT CITICORP HE SAID THAT MOST BORROWERS WHO WERE UNABLE TO PAY OFF THEIR LOANS HAVE ALREADY RENEGOTIATED THEM OR SURRENDERED THEIR PROPERTIES THAT'S TRUE I THINK FOR MOST BANKS HE ADDED BECAUSE OF DECLINING INTEREST RATES SOME BORROWERS WITH FLOATINGRATE DEBT WHO HAD BEEN UNABLE TO STAY CURRENT CAN NOW COVER THE NEW LOWER PAYMENTS MR MCCORMACK SAID IN ADDITION THE PERCEPTION THAT RETAIL AND APARTMENT PROPERTY VALUES HAVE STABILIZED HAS BROUGHT OUT BUYERS ALLOWING SOME BORROWERS TO SELL THEIR PROPERTIES AND PAY OFF THEIR LOANS PUBLIC OFFERINGS HAVE PROVIDED OTHERS WITH CASH TO PAY OFF DEBT THESE FACTORS HAVE CONVINCED SOME ANALYSTS THAT THERE WON'T BE MANY MORE UNPLEASANT REAL ESTATE SURPRISES LURKING IN THE PORTFOLIOS OF COMMERCIAL BANKS BECAUSE OF THE RESERVING FOR LOSSES DONE BETWEEN 1990 AND 1992 AND THE RETURN OF LIQUIDITY TO THE MARKET THINGS ARE IMPROVING AND THE IMPROVEMENT IS ACCELERATING SAID JOHN LEONARD A BANK ANALYST AT SALOMON BROTHERS INC A UNIT OF SALOMON INC WE THINK THAT MOST OF THE RESERVING DONE HAS BEEN ADEQUATE BANKS MUST NOW DECIDE WHAT TO DO WITH THE PROPERTIES THEY HAVE TAKEN BACK SOME HAVE OPTED TO SELL OFF THEIR PROPERTY IN BULK HOPING THEY CAN PRICE IT HIGH ENOUGH THAT THEY WON'T HAVE TO BOOK ADDITIONAL LOSSES AFTER ITS RECENT SALE FOR ABOUT 400 MILLION OF REAL ESTATE ASSETS ORIGINALLY VALUED AT 725 MILLION CHASE MANHATTAN CORP SAID IT WOULD ACTUALLY BOOK A GAIN BECAUSE IT HAD ALREADY TAKEN STEEPER WRITEDOWNS OTHER BANKING COMPANIES SUCH AS CITICORP HAVE DECIDED THAT SELLING THE PROPERTIES ONE BY ONE WILL BRING HIGHER PRICES THEY WON'T KNOW FOR SEVERAL YEARS WHETHER THIS APPROACH WILL NET MORE MONEY FOR SHAREHOLDERS ALTHOUGH THE WORST REAL ESTATE PROBLEMS OF BANKS MAY HAVE PASSED SOME OF THE PROPERTIES THEY FINANCED OR TOOK BACK ARE STILL LIKELY TO DETERIORATE FINANCIALLY RENTAL REVENUE FROM OFFICE BUILDINGS THAT ARE CURRENTLY LEASED AT ABOVEMARKET RATES FOR EXAMPLE COULD DECLINE WHEN LEASES COME DUE 9310120113 931012 IT IS AN INSTRUMENT THAT ALLOWS NO LESS THAN PRECISION PLAYING BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THINK OF IT AS PLAYING A HOLE NOTE JAPAN'S MAKITA CORP A LEADING MAKER OF POWER TOOLS IS CURRENTLY SPONSORING THE JAPANESE TOUR OF MR BIG A US ROCK BAND THE REASON BAND MEMBERS USE MAKITA'S CORDLESS POWER DRILL TO PLAY THEIR INSTRUMENTS IT'S NOT JUST UNPRECEDENTED IT'S UNIQUE FOR A JAPANESE ELECTRIC TOOL MAKER TO SPONSOR AN AMERICAN ROCK BAND SAYS MAKITA EXECUTIVE DIRECTOR HIROAKI KOREEDA NEARBY A VIDEO OF THE BAND SHOWS SKINNY GUYS WITH CURLS SCREAMING ABOUT LOVE SUDDENLY LEAD GUITARIST PAUL GILBERT LEANS BACK AND PRESSES A MODIFIED CORDLESS DRIVER DRILL AGAINST HIS INSTRUMENT THREE WHIRLING GUITAR PICKS GLUED TO THE END OF THE DRILL SEND THE GUITAR TWANGING MR KOREEDA BEAMS AT HIS DRILL'S BIT PART IN THE PERFORMANCE OTHER MAKITA EXECUTIVES PASS OUT PHOTOS OF THE BAND HOLDING THE CORDLESS DRILL ALONG WITH MAKITA'S ANNUAL EARNINGS REPORT JAPANESE ROCK CRITICS MURMURING ABOUT MR BIG'S BLUECOLLAR SPIRIT WONDER IF THERE ISN'T A LITTLE EXPLOITATION GOING ON HERE MR KOREEDA DEMURS OUR IDEA TO SPONSOR THE BAND GREW NATURALLY OUT OF SERVICE TO THE CUSTOMER HE SAYS THIS ISN'T PART OF A MARKETING STRATEGY THE EXECUTIVE ADDS HOWEVER THAT HE IS DELIGHTED TO HAVE MR BIG USING MAKITA DRILLS AND NOT SOME US PRODUCT WE'RE CONFIDENT THAT OUR TOOLS ARE BETTER HE SAYS MR BIG'S BASS GUITARIST BILLY SHEEHAN GIVES THE DRILL A PLUG WHEN BAND MEMBERS COME OUT TO DEMONSTRATE THEIR TALENTS THEY'RE THE BEST HE SAYS GUNNING HIS 6012HDW WHICH IS CRUCIAL TO MR BIG'S SONG DADDY BROTHER LOVER LITTLE BOY EVEN WITH A GOOD PRODUCT THOUGH YOU'VE GOT TO BE CAREFUL SAYS MR GILBERT THE LEAD GUITARIST IF YOU GET THE DRILL IN TOO CLOSE IT WILL RIP ALL THE STRINGS OFF THE GUITAR LATER MR SHEEHAN ADMITS MR BIG DOESN'T REALLY UNDERSTAND MAKITA'S MOTIVATION WE COULDN'T REALLY FIGURE OUT WHY THE COMPANY IS SPONSORING THE BAND'S 16STOP TOUR THROUGH JAPAN IT COULD BE THE BAND'S AFFINITY FOR JAPAN MR BIG'S FIRST COMPACT DISK WAS CALLED LIVE RAW LIKE SUSHI BUT THEN AGAIN AS MR SHEEHAN SEES IT WHY WORRY ABOUT IT IT BEATS BEING SPONSORED BY A FRAGRANCE MAKER HE SAYS 9310120112 931012 PEPPERAND SALT INTO MY REPARTEE WOULD HELP I'M NOT ATTRACTED WE SHOULD TAX VALUE THAT'S SUBTRACTED 9310120111 931012 LETTERS TO THE EDITOR THE REAL ROADBLOCKS TO GUATEMALAN PEACE ON SEPT 3 THE AMERICAS COLUMN FEATURED AN ESSAY BY FRANCISCO VILLAGRAN DE LEON ENTITLED A NEW CHANCE FOR PEACE IN GUATEMALA MR VILLAGRAN'S PREMISE IS THAT THE GUATEMALAN NATIONAL REVOLUTIONARY UNITY URNG IS BLOCKING THE ROAD TO PEACE IN GUATEMALA ACTUALLY THE URNG HAS PROVIDED THE ONLY LEVERAGE FOR CHANGE IN THIS COUNTRY WHERE THE MAJORITY OF THE PEOPLE ARE IMPOVERISHED INDIGENOUS AND EXPLOITED BY THE WEALTHY FEW IT SPEAKS TO THE NEEDS OF THE MAJORITY AND SEEKS TO END THIS APARTHEID SYSTEM RATHER THAN ITS PLATFORM BEING AN EXPANDED AGENDA AS MR VILLAGRAN STATES THE SAME AGENDA HAS BEEN PRESENTED SINCE THE BEGINNING OF THE ORIGINAL PEACE TALKS THE LONGERTERM PROBLEMS AND THE HOPELESSNESS OF DEALING WITH THEM WITHIN THE SYSTEM ARE PRECISELY WHY THE URNG TOOK UP ARMS IN THE FIRST PLACE CONTRARY TO MR VILLAGRAN'S POINT OF VIEW URNG LEADERS HAVE CONTINUOUSLY SUPPORTED AND ENCOURAGED BRINGING SECTORS OF THE CIVIL SOCIETY INTO THE PEACE TALKS THE MILITARY WITH THE BACKING OF THOSE WHO WANT TO MAINTAIN THE STATUS QUO CONTINUES TO RULE WITH IMPUNITY AND IS BLOCKING THE ROAD TO PEACE DESPITE THE HOPES RAISED WITH THE ELECTION OF PRESIDENT DE LEON DEATH THREATS BRUTAL KILLINGS AND DISAPPEARANCES HAVE CONTINUED AGAINST JOURNALISTS UNION LEADERS RETURNING REFUGEES STUDENTS AND COMPESINOS WANTING TO END THE COMPULSORY FORCED RECRUITMENT INTO CIVILIAN PATROLS MR VILLAGRAN SAYS GUATEMALANS ARE COMMITTED TO OVERCOMING VIOLENT CONFRONTATION AND REPLACING IT WITH MECHANISMS FOR DIALOGUE AND THAT PRESIDENT DE LEON IS COMMITTED TO DOWNSIZING THE ARMY BUT THE US IS WORKING CONTRARY TO THIS STATED GOAL ON AUG 4 THE US ARMY'S CHIEF OF STAFF AND THE HEAD OF THE US SOUTHERN COMMAND RESPONSIBLE FOR LATIN AMERICAN OPERATIONS PROMISED NEW SUPPORT FOR GUATEMALA'S ARMY WITH NONLETHAL MILITARY AID FOR THE US TO PUT MORE POWER IN THE HANDS OF THE MILITARY PERPETUATES THE PROBLEM 9310120110 931012 YOUR MONEY MATTERS STOCKOPTIONS INDUSTRY SEEKS TO END SLIDE BY SELLING TO INDIVIDUAL INVESTORS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL THE STOCKOPTIONS INDUSTRY IS SELLING ITSELF TO INDIVIDUAL INVESTORS AS NEVER BEFORE BUT NOT EVERYONE IS BUYING WE TEND TO DISCOURAGE THAT TYPE OF INVESTING SAYS WALTER ROBERTS MANAGER OF A DEAN WITTER REYNOLDS BRANCH OFFICE IN WAYZATA MINN OVER THE LONG TERM I HAVE VERY RARELY SEEN ANYBODY BE PROFITABLE BY TRADING OPTIONS IN A NUTSHELL MR ROBERTS'S SENTIMENTS SUM UP THE PROBLEM THE OPTIONS INDUSTRY HAS FACED SINCE THE 1987 CRASH WHEN THOUSANDS OF OVERLY AGGRESSIVE INVESTORS WERE DEVASTATED IN THE NATION'S OPTIONS MARKETS SINCE THEN THE OPTIONS BUSINESS HAS BEEN IN A SLUMP WHICH MANY IN THE INDUSTRY BLAME ON A SINGLE SPECULATIVE STRATEGY POPULAR BEFORE THE CRASH TO CAPITALIZE ON THE STOCK MARKET'S HUGE GAINS IN THE MID1980S MANY INVESTORS HAD TAKEN TO SELLING PUT OPTIONS CONTRACTS THAT ENTITLED THEIR BUYERS TO SELL STOCKS FOR HIGH PRICES IF THE MARKET PLUNGED AND IF THE MARKET ROSE INSTEAD THE PUTS EXPIRED WORTHLESS AND THEIR SELLERS POCKETED THE MONEY THEY HAD COLLECTED FOR SELLING THEM WITH THE MARKET GOING CRAZY ON THE UPSIDE ANYBODY WHO WROTE PUTS ESPECIALLY INDEX PUTS KEPT ON MAKING MONEY BASICALLY FREE MONEY SAYS HARRISON ROTH CHIEF OPTIONS STRATEGIST FOR COWEN & CO SO THEY FELL IN LUST WITH THE STRATEGY AND INCREASED THEIR COMMITMENT TO AN UNREASONABLE SIZE THEN ON OCT 19 1987 WHEN THE DOW JONES INDUSTRIAL AVERAGE PLUNGED MORE THAN 500 POINTS MANY OF THE INVESTORS WHO HAD FALLEN INTO THIS HABIT WERE WIPED OUT THE CATACLYSM GAVE PEOPLE THE WRONG IMPRESSION OF OPTIONS AS DANGEROUS AND SPECULATIVE IF NOT IMMORAL MR ROTH SAYS THIS IMPRESSION TO SOME DEGREE PERSISTS TODAY WHILE STOCK TRADING VOLUME HAS RETURNED TO PRECRASH LEVELS OPTIONS VOLUME HASN'T STOCKOPTIONS VOLUME IS ON A PACE TO REACH 125 MILLION CONTRACTS BY YEAR END ACCORDING TO OPTIONS CLEARING CORP WHICH CLEARS TRADES FOR ALL US OPTIONS MARKETS THAT WOULD BE UP ABOUT 20 FROM 1992 BUT STILL NEARLY 24 LESS THAN THE 164 MILLION OPTIONS TRADES IN 1987 THE MAIN REASON FOR THIS YEAR'S INCREASE MARKET STRATEGISTS SAY IS STOCK MARKET UNCERTAINTY WITH THE DOW JONES INDUSTRIALS NEAR 3600 AND OPINIONS SHARPLY DIVIDED ABOUT WHERE THE AVERAGE WILL GO FROM HERE MANY INVESTORS ARE LEARNING TO USE OPTIONS IN CONSERVATIVE WAYS TO PROTECT OR HEDGE THEIR STOCK MARKET PROFITS OR IN LOWRISK STRATEGIES AIMED AT AUGMENTING THE RETURNS OF THEIR STOCK PORTFOLIOS THERE IS A GREAT DEAL OF NERVOUSNESS IN THE MARKET SAYS JOHN PLATT VICE PRESIDENT FOR OPTIONS AT RAYMOND JAMES & CO THE POPULARITY OF BUYING OPTIONS TO PROTECT POSITIONS HAS BEEN INCREASING IN THE PAST YEAR OR SO TO CAPITALIZE ON THIS TREND THE OPTIONS INDUSTRY IS MOUNTING A MARKETING DRIVE AIMED AT TONING UP THE IMAGE OF OPTIONS AND WOOING BACK INDIVIDUAL INVESTORS TO THE US'S FOUR BIG OPTIONS EXCHANGES ITS MESSAGE OPTIONS DON'T HAVE TO BE SPECULATIVE CERTAIN OPTIONS STRATEGIES HAVE REGAINED CURRENCY IN PART BECAUSE BIG BROKERAGE FIRMS SUCH AS MERRILL LYNCH ARE STEPPING UP THEIR EFFORTS TO TEACH INVESTORS ABOUT THEM PERHAPS MOST POPULAR IN TODAY'S UNCERTAIN STOCK MARKET IS THE TECHNIQUE OF HEDGING A PORTFOLIO OF STOCKS BY BUYING PUT OPTIONS THESE OPTIONS CONFER THE RIGHT TO SELL STOCKS FOR PRESPECIFIED PRICES FOR INVESTORS WORRIED ABOUT A STOCK MARKET CORRECTION THE STRATEGY AMOUNTS TO LOCKING IN GAINS IN A PORTFOLIO THE COST OF THE STRATEGY IS THE PREMIUM OR FEE AN INVESTOR PAYS FOR THE OPTION PLUS THE BROKER'S COMMISSION FOR BLUECHIP STOCKS OPTIONS PREMIUMS USUALLY RUN A FEW HUNDRED DOLLARS APIECE EACH OPTION CONFERS THE RIGHT TO SELL 100 SHARES IT'S SIMILAR TO BUYING FIRE INSURANCE FOR YOUR HOUSE SAYS WILLIAM FLOERSCH VICE CHAIRMAN OF THE CHICAGO BOARD OPTIONS EXCHANGE AND HEAD OF A MARKETMAKING FIRM THERE YOU HAVE TO PAY A PREMIUM FOR IT BUT YOU CAN SLEEP NIGHTS KNOWING THAT YOU'RE PROTECTED FOR EXAMPLE AN INVESTOR WITH A RELATIVELY STABLE 250000 PORTFOLIO OF BLUECHIP STOCKS MIGHT CHOOSE TO HEDGE BY BUYING PUT OPTIONS ON THE STANDARD & POOR'S 500 INDEX OF LARGECAPITALIZATION STOCKS IT WOULD COST ABOUT 1800 SAYS COWEN & CO'S MR ROTH TO USE THESE OPTIONS TO HEDGE FOR THREE MONTHS THE ENTIRE PORTFOLIO AGAINST A 150POINT DROP IN THE INDUSTRIALS IF A CORRECTION OF THAT MAGNITUDE OCCURRED THE GAIN IN THE VALUE OF THE OPTIONS WOULD OFFSET THE LOSS IN THE STOCKS IF IT DIDN'T MOST OR ALL OF THE 1800 COST OF THE OPTIONS WOULD BE LOST HEDGES CAN ALSO BE STRUCTURED OVER A LONGER PERIOD OF TIME OR FOR MORE SPECIALIZED STOCK PORTFOLIOS PROBABLY THE MOST IMPORTANT THING IS TO FIND THE STOCK INDEX THAT MOST CLOSELY MATCHES YOUR PORTFOLIO MR ROTH SAYS THERE ARE 31 DIFFERENT INDEXES 15 ARE BROADBASED AND 16 ARE SECTOR INDEXES THAT TRACK PARTICULAR INDUSTRIAL SECTORS SUCH AS BIOTECHNOLOGY BANKS OR GOLD AND SILVER ANOTHER LOWRISK METHOD OF USING OPTIONS IS CALLED COVERED CALL WRITING IN WHICH AN INVESTOR BUYS STOCK AND THEN SELLS CALL OPTIONS ON IT THESE OPTIONS ENTITLE SOMEONE ELSE TO BUY THE STOCK IF ITS PRICE RISES FOR THE PRICE AT WHICH THE INVESTOR BOUGHT IT MEANWHILE THE INVESTOR COLLECTS PREMIUMS ON THE OPTIONS BROKERS SOMETIMES USE THIS STRATEGY TO AUGMENT RETURNS IN A RELATIVELY STABLE PORTFOLIO SELLING CALL OPTIONS ON STOCKS THAT AREN'T LIKELY TO REACH THE LEVEL AT WHICH THE BUYER OF THE OPTIONS GAINS THE RIGHT TO PURCHASE THE SHARES WE'VE ALWAYS BEEN VERY SUPPORTIVE OF COVERED CALL WRITING TRYING TO GET SOME INCREMENTAL RETURN AS OPPOSED TO JUST OUTRIGHT HOLDING OF THE SHARES THEMSELVES SAYS WILLIAM J KEHOE A VICE PRESIDENT FOR OPTIONS AT MERRILL LYNCH THE OPTIONS INDUSTRY COUNCIL IS RUNNING INVESTOR SEMINARS AND CIRCULATING VIDEOS THAT DESCRIBE THESE AND OTHER BASIC OPTIONS STRATEGIES BOTH TO HEDGE STOCK MARKET PROFITS AND TO ENHANCE STOCK RETURNS WITH RELATIVELY LITTLE RISK THE COUNCIL IS ALSO TRYING TO INFORM INDIVIDUAL INVESTORS ABOUT THE VARIETY OF OPTIONS THAT TRADE TODAY INCLUDING STOCKINDEX OPTIONS THAT TRACK PARTICULAR INDUSTRIAL SECTORS OF THE MARKET AND OPTIONS CALLED LEAPS THAT ALLOW INVESTORS TO TAKE LONGTERM MARKET POSITIONS SURE PEOPLE CAN SPECULATE WITH OPTIONS SAYS MR ROTH BUT YOU CAN ALSO DO THINGS WITH OPTIONS THAT YOU CAN'T DO IN OTHER MARKETS AND THAT IS TO HEDGE YOUR HOLDINGS WHETHER IN AN INDIVIDUAL SECTOR OR A BROAD POSITION IN THE MARKET 9310120109 931012 TURNING UP US MAY BE ON VERGE OF STRONGER GROWTH SOME SIGNS SUGGEST EQUIPMENT SPENDING IS BRISK HIRING COULD SOON RISE LOW INTEREST RATES HELP NEW CARS STORES AND MERGERS BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL PERHAPS THE STOCK MARKET ISN'T CRAZY DESPITE THE MOST LACKLUSTER ECONOMIC RECOVERY SINCE WORLD WAR II THERE ARE SCATTERED SIGNS THAT THE US IS BEGINNING A PERIOD OF STRONG SOLID GROWTH AND THE CASE FOR OPTIMISM GOES FAR BEYOND THE STOCK MARKET'S SUMMER SURGE AT INTERNATIONAL PAPER CO FOR EXAMPLE THE OUTLOOK CURRENTLY SEEMS SOGGY PAPER PRICES ARE FALLING AND THE INDUSTRY IS STILL WORKING THROUGH EXCESS CAPACITY YET THE PURCHASE NY MANUFACTURER OF PAPER PRODUCTS RECENTLY BEGAN A 300 MILLION EXPANSION OF ITS SELMA ALA PAPER MILL THE EXPANSION EXPECTED TO BE COMPLETED BY MID1995 WILL ADD 120 NEW WORKERS TO THE MILL'S PAYROLL OF 700 THE COMPANY'S PLANNERS THINK THAT THE ECONOMY THOUGH DISAPPOINTING NOW IS SETTING ITSELF UP FOR STRONGER GROWTH AND THAT 1995 MAY WELL BE THE YEAR THINGS START TO SHOW SOME SPUNK WITH THE EXTENDED LOWGROWTH PERIOD WE'RE IN NOW WE EXPECT MORE GROWTH IN 1995 SO THAT THE ECONOMY CAN MOVE FORWARD SAYS C WESLEY SMITH AN EXECUTIVE VICE PRESIDENT THE COMPANY ANTICIPATES STRONGER DEMAND FOR COPIER AND PUBLISHING PAPERS BY THE TIME ITS EXPANDED PLANT IS OPERATING INTERNATIONAL PAPER'S EXPANSION PLANS SEEM TO FLY IN THE FACE OF THE GENERALLY GLOOMY SENTIMENT ABOUT THE ECONOMY MANY COMPANIES ARE STILL LAYING OFF WORKERS AS THE ECONOMY CONTINUES TO WORK THROUGH DAUNTING PROBLEMS DEFENSE DOWNSIZING THE COMMERCIALREALESTATE GLUT AND BUSINESS RESTRUCTURING THERE ARE CYCLICAL PROBLEMS AS WELL SAGGING EXPORTS AND THE DOUR MOODS OF MANY AMERICANS ACCORDING TO THE CONVENTIONAL WISDOM EVIDENCED BY THE LATEST SURVEY OF 51 ECONOMISTS BY BLUE CHIP ECONOMIC INDICATORS NEWSLETTER THESE PROBLEMS WILL HOLD DOWN ECONOMIC PERFORMANCE FOR THE NEXT SEVERAL YEARS BUT THERE IS SUPPORT FOR A LESS CONVENTIONAL VIEW THAT THE ECONOMY IS POISED TO GAIN REAL MOMENTUM RICHARD DC TRAINER SENIOR ECONOMIST FOR BANK OF TOKYO NEW YORK GROUP SEES A 50 CHANCE FOR 4 GROWTH THE BEST IN 10 YEARS IN 1994 FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SAID RECENTLY THAT BECAUSE OF PRODUCTIVITY GAINS AND THE ATTACK ON STRUCTURAL PROBLEMS THE ECONOMY SHOULD EVENTUALLY EMERGE HEALTHIER AND MORE VIBRANT THAN IN DECADES EVEN CAUTIOUS ECONOMISTS ACKNOWLEDGE A CHANCE THAT GROWTH IN THE NEXT FEW YEARS COULD BE UNEXPECTEDLY HIGH THERE IS CERTAINLY A POSSIBILITY OF STRONG GROWTH SAYS KURT KARL HEAD OF MACROECONOMIC FORECASTING AT WEFA GROUP A FORECASTING CONCERN BASED IN BALA CYNWYD PA HE SEES A 25 PROBABILITY THAT GROWTH WILL BE CLOSE TO 4 IN 1994 AND 1995 JUST LOOK AROUND AND THERE ARE ALREADY SIGNS OF RENEWED LIFE MANY CARS ON THE STREET ARE NEW NOT OLD CLUNKERS GROCERY STORES BAGEL SHOPS AND SPECIALTY STORES ARE SPROUTING UP IN VACANT STOREFRONTS THE STEADY CLIMB OF THE STOCK AND BOND MARKETS HAS PUMPED UP PERSONAL PORTFOLIOS GIVING MILLIONS OF INVESTORS MORE WEALTH TO SPEND THE MEGAMERGER THAT BAROMETER OF BUSINESS OPTIMISM SEEMS TO BE RETURNING HERE ARE SIX REASONS THINGS MIGHT FOR A CHANGE GO RIGHT FOR THE US ECONOMY NO ONE OF THESE FACTORS ALONE WOULD BE SUFFICIENT TO LIFT GROWTH ABOVE CURRENT LEVELS BUT HAPPENING SIMULTANEOUSLY THEY COULD PRODUCE PLEASANT SURPRISES TO SOME THE FACT THAT COMPANIES ARE INVESTING HEAVILY IN EQUIPMENT SUGGESTS THAT EXECUTIVES BELIEVE THE ECONOMY WILL GET STRONGER SOON YOU DON'T INVEST WHEN YOU'RE PESSIMISTIC ABOUT THE FUTURE SAYS THOMAS RUNIEWICZ INDUSTRIAL ANALYST AT WEFA YOU INVEST TO SET YOURSELF UP FOR A TAKEOFF IN THE ECONOMY BALDOR ELECTRIC CO IN FORT SMITH ARK FOR EXAMPLE IS ON TRACK TO SPEND 15 MILLION ON CAPITAL EQUIPMENT THIS YEAR THAT WOULD BE A RECORD FOR THE MAKER OF ELECTRIC MOTORS AND CONTROLS ROLAND BOREHAM ITS CHAIRMAN EXPECTS ANOTHER INCREASE IN 1994 HEY THINGS AREN'T THAT BAD OUT THERE HE SAYS THEY'RE ACTUALLY KIND OF GOOD BALDOR'S BUSINESS IS UP AT DOUBLEDIGIT RATES FROM A YEAR AGO THE QUEST FOR IMPROVED PRODUCTIVITY IS DRIVING COMPANIES TO BUY EQUIPMENT IF BUSINESSES SEE ECONOMIC PIECES FALLING INTO PLACE THEY WILL INCREASE THEIR CAPITAL SPENDING EVEN MORE MR TRAINER SAYS THE CONSENSUS HAS CAPITAL SPENDING UP BY 72 IN 1994 BUT SOME ECONOMISTS SAY IT COULD CLIMB AS MUCH AS 11 ACCORDING TO CHAIRMAN GREENSPAN LOW INFLATION PLAYS A ROLE HE SAYS COMPANIES ARE MORE LIKELY TO TRY TO BECOME MORE PRODUCTIVE WHEN THEY CAN'T RAISE PRICES TO INCREASE PROFITS AT SOME POINT PRODUCTIVITY GAINS ARE EXHAUSTED OVERTIME WORK ISN'T COSTEFFECTIVE AND BUSINESSES BEGIN TO HIRE COMPANIES WILL HAVE TO HIRE TO MEET DEMAND SAYS LYNN REASER CHIEF ECONOMIST OF FIRST INTERSTATE BANCORP MANUFACTURERS CLEARLY ARE EXTREMELY HESITANT AFTER SLASHING THEIR PAYROLLS CONSISTENTLY SINCE THE START OF THE YEAR BUT WHEN DEMAND PICKS UP SUFFICIENTLY A COMPANY HAS NO CHOICE BUT TO ADD WORKERS OR LOSE BUSINESS WHEN MILTRONICS INC A PAINESVILLE OHIO SUPPLIER TO MEDICALEQUIPMENT MANUFACTURERS HAD A DOUBLEDIGIT INCREASE IN BUSINESS AT THE START OF THE YEAR IT FIRST TRIED TO WORK EXISTING EMPLOYEES OVERTIME TO KEEP UP WITH DEMAND WE FOUND OUT IN ABOUT TWO MONTHS THAT IT COULDN'T WORK SAYS JOHN T NELSON THE CHIEF EXECUTIVE BECAUSE BUSINESS WAS UP TOO MUCH THE COMPANY THEN HIRED 15 NEW PEOPLE AND EMBARKED ON A 15 MILLION EXPANSION THAT WILL EVENTUALLY ADD MORE THAN 40 MORE BUT THE OPTIMISTS SEE SIGNS THAT THE ECONOMY IS BEGINNING TO GET A LIFT FROM LOW LONGTERM RATES AARON RENTS INC A HOUSEHOLDGOODS AND OFFICEFURNITURE RENTAL AND RETAIL COMPANY IN ATLANTA IS EXPANDING RAPIDLY OPENING A STORE A WEEK AND EMPLOYING SIX TO EIGHT PEOPLE AT EACH ONE R CHARLES LOUDERMILK SR THE CHIEF EXECUTIVE SAYS THE COMPANY CAN EXPAND SO QUICKLY LARGELY BECAUSE LOW INTEREST RATES AND THE LACK OF INFLATION ARE REALLY HELPING US WE ARE ONLY LIMITED BY OUR MANAGEMENT ABILITY NOT THE ECONOMY SOMETIMES A PICKUP IN THE RENTAL BUSINESS IS PERCEIVED AS A NEGATIVE SINCE IT SUGGESTS THAT MANY BUSINESSES AND CONSUMERS AREN'T CONFIDENT ENOUGH OR PROSPEROUS ENOUGH TO BUY BUT THE KIND OF NEW CUSTOMERS THAT AARON IS GETTING SUGGESTS THAT THE ECONOMY IS POISED FOR STRONGER GROWTH MR LOUDERMILK SAYS MANY OF THEM ARE SMALL GROWING CONCERNS AND STARTUPS THEY DON'T WANT TO PUT ALL THAT CASH FOR FURNITURE AND EQUIPMENT UP OUT FRONT HE SAYS THE OFFICE SIDE OF AARON'S BUSINESS IS UP ABOUT 20 FROM A YEAR AGO LOWER INTEREST RATES MAY FINALLY BE HELPING THE HOUSING MARKET AS WELL ECONOMISTS HAVE BEEN STUMPED AT THE RESIDENTIAL CONSTRUCTION SECTOR'S SLOW RESPONSE TO THE LOWEST RATES IN MORE THAN 20 YEARS BUT IN AUGUST HOUSING STARTS HIT THEIR HIGHEST LEVEL IN MORE THAN THREE YEARS THE HOUSING MARKET IS TURNING AROUND SAYS WALTER MINNICK CHIEF EXECUTIVE OF TJ INTERNATIONAL A BUILDINGMATERIALS COMPANY IN BOISE IDAHO CONSUMERS ARE NO LONGER GOING TO BE MONKEYING AROUND WITH THEIR BALANCE SHEETS THEY ARE GOING TO REPLACE OLD FURNITURE AND THE FAMILY CAR SAYS DONALD RATAJCZAK HEAD OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY BELVA WALLS A RETIRED COSMETOLOGYSCHOOL OWNER IN PROCTORVILLE OHIO SAYS SHE FEELS MORE CONFIDENT ABOUT SPENDING MONEY AND USING CREDIT NOW THAN A YEAR AGO I THINK WE'RE COMING OUT OF IT THE ECONOMIC SLOWDOWN MRS WALLS SAYS SHE BOUGHT A RENTAL PROPERTY IN MYRTLE BEACH SC A MONTH AGO AND HAS BEEN CHARGING NEW CLOTHES ON HER DEPARTMENTSTORE CREDIT CARDS I WAS A LITTLE SKEPTICAL ABOUT SPENDING MONEY LIKE THAT A YEAR AGO SHE SAYS MOREOVER AMERICANS SEEM BETTER ABLE TO MANAGE THEIR DEBT MRS WALLS SAYS SHE TRIES TO PAY OFF MOST OF HER CREDITCARD BILLS EACH MONTH THE PERCENTAGE OF PEOPLE IN ARREARS ON CONSUMER LOANS FELL IN THE SECOND QUARTER TO A NINEYEAR LOW THAT IS A SIGN OF ECONOMIC HEALTH PEOPLE MAY NOT GET OVERBURDENED WITH DEBT AS THEY DID IN THE LATE 1980SA PROBLEM THAT CRIMPED SPENDING AND HELPED STALL THE RECOVERY NATIONAL CITY BANK OF CLEVELAND SAYS ITS LOANS TO SMALL BUSINESSES JUMPED 165 IN AUGUST FROM A YEAR EARLIER STEPHEN FINDLAY HEAD OF THE BANK'S BUSINESS CREDIT DIVISION SAYS NATIONAL CITY HAS MADE A CONCERTED EFFORT TO WOO SMALLBUSINESS CUSTOMERS AND DISPEL THE DUMB THEORY THE CATCHWORD SOME SMALL BUSINESSES USE FOR THE ATTITUDE THEY PERCEIVE AT LARGE BANKS DON'T UNDERSTAND MY BUSINESS THE FEDERAL RESERVE BANK OF NEW YORK REPORTS A RECENT SHARP INCREASE IN THE WILLINGNESS OF SMALL AND MEDIUMSIZED BANKS IN ITS DISTRICT TO MAKE BUSINESS LOANS THE NIGHTMARE HAVING TO DO WITH THE FINANCIAL SECTOR IS BEHIND US SAYS WHITE HOUSE ECONOMIST ALAN BLINDER EXPORTS MAY BE BETTER THAN THE CONSENSUS ESTIMATES THE LAGGED EFFECTS OF THE UNDERVALUED US DOLLAR AND THE PICKINGUP OF ECONOMIES OVERSEAS ARE GOING TO MAKE EXPORTS NOT THAT BAD IN 1994 SAYS IRWIN KELLNER CHEMICAL BANKING CORP'S CHIEF ECONOMIST RONALD BULLOCK PRESIDENT OF BISON GEAR & ENGINEERING CORP OF DOWNERS GROVE ILL IS OPTIMISTIC THAT THE SMALL MANUFACTURER'S EXPORTS WILL GROW NEXT YEAR PRIMARILY BECAUSE OF A WEAK DOLLAR RIGHT NOW EXPORTS REPRESENT ABOUT 5 OF BISON'S BUSINESS BUT MR BULLOCK THINKS THAT PERCENTAGE WILL REACH DOUBLE DIGITS BY THE END OF 1994 THE US EXPANSION IS GOING TO GET MORE FROM EXPORTS THAN ECONOMISTS EXPECT THE RICHMOND FED'S MR BROADDUS SAYS CANADA AND THE UK ARE SHOWING SIGNS OF REVIVAL AND MAYBE THE GERMAN ECONOMY IS BOTTOMING OUT AND ABOUT TO MOVE UP AGAIN 9310120108 931012 PACTEL BUYING CELLULAR PHONES WALNUT CREEK CALIF PACTEL CORP A UNIT OF PACIFIC TELESIS GROUP SAN FRANCISCO SAID IT WILL PURCHASE 20000 PORTABLE CELLULAR PHONES FROM TWO KOREAN MANUFACTURERS HYUNDAI ELECTRONICS INDUSTRY LTD AND MAXON SYSTEMS INC PACTEL SAID IT EXPECTS TO MARKET THE SETS IN LOS ANGELES STARTING IN EARLY 1995 THE PHONES USE CODE DIVISION MULTIPLEACCESS DIGITAL TECHNOLOGY A NEW DESIGN THAT PERMITS IMPROVED CALL QUALITY AND EXPANDED TRANSMISSION CAPACITY 9310120107 931012 BUSINESS GROUP QUADRUPLES OUTLAY ON RECYCLED ITEMS BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL A COALITION OF US BUSINESSES SAID IT NEARLY QUADRUPLED THE AMOUNT OF MONEY TO 105 BILLION SPENT ON RECYCLED PRODUCTS THIS YEAR MEETING IN NASHVILLE TENN THE NATIONAL RECYCLING COALITION SAID MEMBERSHIP IN THE BUY RECYCLED BUSINESS ALLIANCE HAS GROWN TO NEARLY 500 LARGE AND SMALL COMPANIES FROM 25 WHEN THE ALLIANCE WAS FORMED IN SEPTEMBER 1992 THROUGH SEPT 15 OF THIS YEAR THE ALLIANCE SPENT 105 BILLION ON RECYCLED PRODUCTS COMPARED WITH ABOUT 27 BILLION THE PREVIOUS YEAR THE ALLIANCE SURVEYED ITS MEMBERS FOR THE AMOUNT THEY SPENT IN THE YEAR ENDED SEPTEMBER 1992 ALLIANCE MEMBERS INCLUDE A CROSSSECTION OF AMERICAN BUSINESS AND SUCH WELLKNOWN COMPANIES AS AMR CORP'S AMERICAN AIRLINES QUAKER OATS CO RUBBERMAID INC ANHEUSERBUSCH INC AMERICAN TELEPHONE & TELEGRAPH CO COCACOLA CO KMART CORP AND MCDONALD'S CORP THE COALITION WAS ORIGINALLY FORMED TO HELP SPUR THE DEMAND SIDE OF THE COUNTRY'S RECYCLING BUSINESS WHICH HAS BEEN PLAGUED BY DISTRIBUTION BOTTLENECKS AND REGIONAL GLUTS OF COLLECTED MATERIALS A MAJOR OBJECTIVE OF ALLIANCE MEMBERS HAS BEEN TO REQUIRE THEIR OWN SUPPLIERS TO PROVIDE THEM WITH HIGHER VOLUMES OF RECYCLED RAW MATERIALS AND GREATER RECYCLED CONTENT IN FINISHED GOODS AMERICAN AIRLINES SAID IT SAVED MORE THAN 100000 OVER 12 MONTHS BY USING 100 RECYCLED PAPER IN ITS COMPUTER DIVISION AND AN ADDITIONAL 33000 BY PRINTING ITS ANNUAL REPORT ON RECYCLED PAPER MCDONALD'S SAID IT HAS SPENT MORE THAN 600 MILLION SINCE 1990 ON RECYCLED PRODUCTS INCLUDING MATERIAL FOR CARRYOUT BAGS NAPKINS DRINK TRAYS AND TOWELS AND IN 1992 WMX TECHNOLOGIES INC WHICH COLLECTS AND PROCESSES GARBAGE SAID IT SPENT MORE THAN 130 MILLION ON ITEMS CONTAINING RECYCLED MATERIAL MUCH OF THAT WENT FOR TRUCKS MADE OF RECYCLED STEEL RUBBERMAID SAID IT PLANS TO ROLL OUT 24 NEW PRODUCTS THIS FALL WITH 20 RECYCLED CONTENT AND FOUR NEW PRODUCTS WITH 50 RECYCLED MATERIAL AND QUAKER OATS HAS ADDED TO ITS ROSTER OF PRODUCTS CONTAINING RECYCLED MATERIAL AND NOW SPENDS MORE THAN 22 MILLION A YEAR ON SUCH ITEMS WE NEED TO BUY MORE OF THOSE PRODUCTS THOUGH IN ORDER TO DRIVE MANUFACTURERS TO MAKE INVESTMENTS THAT WILL STIMULATE DEMAND FOR THE INCREASING SUPPLY OF MATERIALS COLLECTED BY RECYCLING PROGRAMS SAID NOAH HOROWITZ QUAKER'S MANAGER OF ENVIRONMENTAL PROGRAMS 9310120106 931012 JWP INC WILL FILE PREPACKAGED PLAN AS PART OF ACCORD BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL AFTER STRUGGLING FOR MONTHS TO REFINANCE ITS 484 MILLION DEBT JWP INC SAID IT WILL FILE A REORGANIZATION PLAN AS PART OF AN AGREEMENT WITH DEBTHOLDERS THE MECHANICAL AND ELECTRICAL CONSTRUCTION CONTRACTING COMPANY SAID THE PREPACKAGED BANKRUPTCYLAW PLAN EFFECTIVELY WOULD PAY NOTHING TO SHAREHOLDERS AND SUBORDINATED NOTE HOLDERS UNDER ITS TERMS HOLDERS OF ABOUT 75 OF SENIOR NOTES AND BANK DEBTS WOULD EXCHANGE THE DEBT FOR ABOUT 100 MILLION OF RECOURSE DEBT TO BE SUPPORTED BY LIKELY SALES OF SOME BUSINESSES 80 MILLION IN NONRECOURSE OR UNGUARANTEED DEBT AND 100 OF THE COMPANY'S EQUITY JWP BASED IN RYE BROOK NY SAID ITS UNITS' OPERATIONS AND OBLIGATIONS WOULDN'T BE AFFECTED A SPOKESWOMAN SAID JWP WARNED SHAREHOLDERS TWO MONTHS AGO THAT ANY RESTRUCTURING PLAN WOULD RESULT IN A SIGNIFICANT DILUTION OF THEIR HOLDINGS THE COMPANY SAID IT EXPECTS TO COMPLETE THE PLAN IN THE FIRST QUARTER OF 1994 CHAIRMAN AND CHIEF EXECUTIVE EDWARD F KOSNIK SAID WHILE WE ARE DISAPPOINTED THAT HOLDERS OF SUBORDINATED DEBT AND EQUITY WILL NOT PARTICIPATE IN THE RESTRUCTURED COMPANY WE BELIEVE THAT THE PROPOSED DEBT RESTRUCTURING WILL ALLOW JWP TO OPERATE WITH A STRONG CAPITAL STRUCTURE IN THE FUTURE THE SPOKESWOMAN SAID THE COMPANY LIKELY WILL SELL SOME DOMESTIC MECHANICAL AND ELECTRICAL CONTRACTING UNITS INCLUDING ITS DYNALECTRIC BUSINESS THE COMPANY SAID THE DIVESTITURES WILL ENABLE JWP TO CONCENTRATE ON GEOGRAPHIC MARKETS WHERE IT HAS STRONG POSITIONS SEPARATELY THE COMPANY REPORTED ITS UNAUDITED RESULTS FOR THE FIRST AND SECOND QUARTERS OF 1993 AND FULL YEAR 1992 FOR THE SECOND QUARTER THE COMPANY REPORTED A NET LOSS OF 159 MILLION OR 40 CENTS A SHARE NARROWED 70 FROM THE YEAREARLIER LOSS OF 54 MILLION OR 134 A SHARE WHICH INCLUDES A 242 MILLION CHARGE FOR DISCONTINUED OPERATIONS FOR THE FIRST QUARTER JWP HAD A LOSS OF 101 MILLION OR 26 CENTS A SHARE A 28 NARROWING FROM THE YEAREARLIER LOSS OF 141 MILLION OR 36 CENTS A SHARE WHICH INCLUDES A 99 MILLION CHARGE FOR DISCONTINUED OPERATIONS JWP REPORTED A NET LOSS OF 5969 MILLION OR 1475 A SHARE FOR 1992 A YEAR EARLIER IT HAD RESTATED NET INCOME OF ABOUT 30 MILLION OR 77 CENTS A SHARE THE 1992 RESULTS INCLUDE A 2538 MILLION LOSS FROM DISCONTINUED OPERATIONS RELATED TO JWP'S INFORMATION SERVICES BUSINESS WHICH WAS SOLD RECENTLY 9310120105 931012 BUSINESS BRIEF DIGITAL WILL SELL POWERFUL WORKSTATION IN REPLY TO LAST MONTH'S MOVE BY IBM DIGITAL EQUIPMENT CORP WILL DELIVER A COUNTERPUNCH TODAY TO INTERNATIONAL BUSINESS MACHINES CORP WITH A NEW WORKSTATION AS POWERFUL AS THE ONE ANNOUNCED LAST MONTH BY IBM BUT AT HALF THE PRICE THE NEW TOPOFTHELINE WORKSTATION IS PART OF A HUGE PRODUCT SERVICES AND SOFTWARE ANNOUNCEMENT BY DIGITAL IN WHICH THE COMPUTER MAKER WILL CLAIM AN EDGE IN THE NEW MODELS' PRICE AND PERFORMANCE OVER IBM HEWLETTPACKARD CO AND SUN MICROSYSTEMS INC ITS KEY COMPETITORS IN ADVANCE OF THE ANNOUNCEMENT DIGITAL RELEASED INDEPENDENTLY AUDITED COMPARISONS OF THE NEW COMPUTERS THAT IT SAYS BACK UP THOSE CLAIMS ACCORDING TO THE FIGURES DIGITAL'S LATEST MODELS CLEARLY OUTPACE THE AUDITED NUMBERS PROVIDED BY COMPETITORS FOR COMPARABLE MODELS AT LOWER PRICES IN THE CASE OF THE HIGHEND WORKSTATION DIGITAL'S MODEL EQUALS IBM'S PERFORMANCE BUT IS PRICED AT 36000 COMPARED WITH ABOUT 70000 AN IBM SPOKESMAN DECLINED TO COMMENT ON THE COMPARISONS HEWLETTPACKARD SAID IT WOULD BE ANNOUNCING NEW PRODUCTS LATE THIS YEAR THAT WOULD EXCEED DIGITAL'S LATEST MODELS AND SUN RESPONDED THAT WHILE DIGITAL'S NEW MODELS MAY BE MORE POWERFUL IN THEIR SINGLEPROCESSOR VERSIONS MOST SUN SYSTEMS RUN WITH MULTIPLE PROCESSORS WILLIAM STRECKER DIGITAL'S ENGINEERING CHIEF SAID THE MAYNARD MASS COMPANY CAN STILL MAKE MONEY WITH THE WORKSTATIONS DESPITE THEIR AGGRESSIVE PRICING BECAUSE OF THE POWER OF DIGITAL'S ALPHA CHIP LOOK AT THE HEROICS IBM HAD TO GO THROUGH TO GET THE PERFORMANCE THEY ANNOUNCED LAST MONTH ITS AN EIGHTCHIP SET WE DO IT ALL IN A SINGLE CHIP DIGITAL ALSO WILL ANNOUNCE NEW SERVER COMPUTERS INCLUDING A NEW ALPHABASED MODEL TO TIE TOGETHER LARGE PC NETWORKS AGGRESSIVELY PRICED AT 6995 FOR A BASIC UNIT WITH 535 MEGABYTES OF STORAGE NEW SOFTWARE IS ALSO EXPECTED INCLUDING LINK WORKS WHICH IS SOFTWARE DESIGNED FOR TEAMS OF WORKERS SOMETIMES CALLED GROUPWARE AND A NEW COMMERCIALGRADE VERSION OF DIGITAL'S UNIX OPERATING SOFTWARE 9310120104 931012 CARDINAL SETS WHITMIRE DEAL FOR 303 MILLION PURCHASE FOR STOCK TO CREATE ONE OF NATION'S BIGGEST WHOLESALERS OF DRUGS BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL CARDINAL DISTRIBUTION INC WILL ACQUIRE WHITMIRE DISTRIBUTION CORP FOR ABOUT 303 MILLION IN STOCK IN A DEAL THAT WILL CREATE THE THIRDLARGEST DRUG WHOLESALER IN THE US THE NEW ENTITY WHICH EXPECTS TO HAVE COMBINED REVENUE OF ABOUT 6 BILLION THIS YEAR WOULD BE THE LATEST CONSOLIDATION IN THE HEALTHCARE INDUSTRY WHICH HAS BEEN POSITIONING ITSELF TO PREPARE FOR THE CLINTON HEALTH PLAN THE TRANSACTION WILL MARRY TWO DISTRIBUTORS OF PRESCRIPTION DRUGS AND OTHER HEALTHCARE PRODUCTS WITH COMPLEMENTARY GEOGRAPHICAL STRENGTHS WHOSE SALES HAVE BEEN GROWING RAPIDLY WHILE CARDINAL IS CONSIDERED THE STRONGEST PLAYER EAST OF THE MISSISSIPPI WHITMIRE IS AMONG THE STRONGEST WEST OF IT BOTH HAVE BUILT THEIR BUSINESS BY SELLING TO CHAIN DRUGSTORES AND HOSPITALS AMONG THE FASTESTGROWING SEGMENTS OF THE WHOLESALE BUSINESS IN THE DEAL ANNOUNCED LATE YESTERDAY AFTER THE CLOSE OF TRADING STOCKHOLDERS OF CLOSELY HELD WHITMIRE WILL RECEIVE 83 MILLION SHARES OF CARDINAL COMMON STOCK WHICH CLOSED UNCHANGED AT 3650 IN OVERTHECOUNTER TRADING YESTERDAY THE DEAL ALSO INCLUDES THE ASSUMPTION OF WHITMIRE DEBT CURRENTLY TOTALING ABOUT 100 MILLION THE TRANSACTION IS EXPECTED TO BE COMPLETED IN LATE 1993 OR EARLY 1994 WHITMIRE WILL CONTINUE AS AN OPERATING SUBSIDIARY OF CARDINAL AFTER THE ACQUISITION WHICH IS EXPECTED TO BE ACCOUNTED FOR AS A TAXFREE POOLING OF INTERESTS THIS PUTS CARDINAL INTO THE RANKS OF BEING A NATIONAL DISTRIBUTOR OF PHARMACEUTICALS SAID DONALD SPINDEL AN ANALYST AT AG EDWARDS & SONS INC ST LOUIS WHITMIRE SAYS ITS REVENUE HAS BEEN RISING 30 ANNUALLY DURING THE PAST FIVE YEARS WITH A COMMENSURATE INCREASE IN OPERATING EARNINGS CARDINAL OF DUBLIN OHIO EARNED 336 MILLION INCLUDING AN EXTRAORDINARY GAIN OF 22 MILLION ON REVENUE OF 2 BILLION FOR THE FISCAL YEAR ENDED MARCH 31 WHITMIRE OF FOLSOM CALIF SAID ITS REVENUE TOTALED 27 BILLION FOR THE 12 MONTHS ENDED JUNE 30 BUT IT DIDN'T DISCLOSE EARNINGS CARDINAL SAID IT EXPECTED THE ACQUISITION TO IMMEDIATELY INCREASE CARDINAL'S EARNINGS PERSHARE WHITMIRE IS OWNED BY MEMBERS OF MANAGEMENT APOLLO INVESTMENT FUND LP AND CHEMICAL VENTURE PARTNERS AN AFFILIATE OF CHEMICAL BANKING CORP THE COMPANY RESULTED FROM A 1988 LEVERAGED BUYOUT OF THE DRUGDISTRIBUTION UNIT OF AMFAC INC MARGINS IN THE DRUGDISTRIBUTION BUSINESS HAVE COME UNDER HEAVY PRESSURE DURING THE PAST FEW YEARS AS COMPETITION HAS INTENSIFIED AND CUSTOMERS HAVE PRESSED FOR BETTER DEALS AS A RESULT MANY OF CARDINAL'S RIVALS HAVE CONSOLIDATED TO EXPAND THEIR TURF LAST YEAR BERGENBRUNSWIG CORP THE SECONDLARGEST DISTRIBUTOR WON A BIDDING WAR WITH CARDINAL FOR DURRFILLAUER MEDICAL INC THE NINTHLARGEST DISTRIBUTOR AND THIRDLARGEST FOXMEYER CORP BOUGHT HARRIS WHOLESALE CO MCKESSON CORP IS THE LARGEST PLAYER WITH SALES OF 10 BILLION FROM ITS DRUGDISTRIBUTION ARM BUT CARDINAL'S EARNINGS HAVE CONTINUED TO GROW INDEED IT IS AMONG THE FASTESTGROWING PUBLICLY HELD WHOLESALERS WITH SALES ADVANCING AN AVERAGE 30 ANNUALLY AND NET INCOME INCREASING AN AVERAGE 46 A YEAR FOR THE PAST FIVE YEARS MOREOVER YESTERDAY ITS STOCK TRADED AT 20 TIMES EARNINGS MORE THAN TWICE THAT OF MANY OF ITS COMPETITORS THEY'VE MADE GOOD ACQUISITIONS AND INTEGRATED THEM INTO OPERATIONS WITHOUT MISSING A BEAT SAID MR SPINDEL MR SPINDEL SAID HE EXPECTS TO RAISE HIS EARNINGS ESTIMATES FOR CARDINAL TO 185 A SHARE FROM 183 A SHARE FOR THE FISCAL YEAR THAT ENDS IN MARCH 1994 AND BY 10 CENTS A SHARE THE FOLLOWING YEAR TO 225 FROM HIS PRIOR ESTIMATE OF 215 A SHARE CARDINAL SAID THE COMBINED ORGANIZATION WILL BE IN A POSITION TO SERVE THE POPULATION OF THE ENTIRE COUNTRY ON A NEXTDAY DELIVERY BASIS FROM ABOUT 40 DISTRIBUTION CENTERS TODD RICHTER HEALTH SERVICES ANALYST WITH DEAN WITTER TERMED THE DEAL AN OUTSTANDING FIT IT CREATES IN ONE FELL SWOOP THE STRONGEST BESTPOSITIONED DRUG WHOLESALER IN THE US 9310120102 931012 TECHNOLOGY INTEL 3RDPERIOD NET MORE THAN DOUBLED BUT PROFIT WAS SLIGHTLY BELOW FORECASTS BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL INTEL CORP RANG UP ANOTHER QUARTER OF RECORD RESULTS AS THIRDQUARTER NET INCOME MORE THAN DOUBLED TO 5844 MILLION OR 133 A SHARE THE EARNINGS WERE A SHADE UNDER ANALYSTS' EXPECTATIONS OF 134 TO 135 A SHARE IN THE VOLATILE WORLD OF HIGHTECHNOLOGY SUCH DISCREPANCIES ARE ENOUGH TO MAKE INVESTORS TREMBLE AND INTEL'S STOCK DROPPED ON THE NEWS CLOSING AT 6550 A SHARE DOWN 475 OR 68 IN NATIONAL OVERTHECOUNTER TRADING THE RESULTS SIGNALED THAT EVEN THE MIGHTY SEMICONDUCTOR MAKER DESPITE ROBUST SALES GROWTH AND A VIRTUAL STRANGLEHOLD ON CHIEF SECTORS OF THE CHIP MARKET IS BEGINNING TO FEEL AT LEAST SOME PRESSURE ON ITS PROFIT MARGINS THE SANTA CLARA CALIF COMPANY SAID SALES OF ITS NEW HIGHPOWERED AND HIGHMARGIN PENTIUM CHIPS ARE BOOMING HOWEVER INTEL'S LOWEREND PRODUCTS SUCH AS CERTAIN OF ITS 486 CHIP SERIES STILL ARE DOMINATING THE PRODUCT MIX INTEL IS STARTING TO SEE INROADS ON ITS MONOPOLY ON 486 CHIPS FROM ADVANCED MICRO DEVICES INC AND CYRIX CORP INTEL RECENTLY ANNOUNCED PRICE CUTS ON SOME 486 CHIPS OF AS MUCH AS 29 INTEL ALSO HAD STRONG THIRDQUARTER SALES OF ITS SOCALLED FLASH CHIPS MEMORY STORAGE CHIPS THAT CARRY LOWER MARGINS THAN ITS HIGHEREND PRODUCTS INTEL'S OVERALL GROSS PROFIT MARGINS ARE STILL ENORMOUS THE COMPANY SAID ITS GROSS MARGIN FOR THE QUARTER WAS 63 DOWN ONE PERCENTAGE POINT FROM THE SECOND QUARTER AND EIGHT PERCENTAGE POINTS HIGHER THAN A YEAR EARLIER ITS 26 NET RETURN ON SALES IS BELIEVED TO BE THE HIGHEST OF ANY MAJOR CORPORATION THE COMPANY SEEMED PEEVED THAT ANALYSTS WERE FOCUSING ON THE MARGIN DROP COME ON IT'S ONE PERCENTAGE POINT SAID MICHELLE BOURDON A SPOKESWOMAN OUR MARGINS ARE THE BIGGEST IN THE INDUSTRY WE'RE MAKING A LOT OF MONEY THAT'S WHAT WE THINK PEOPLE SHOULD FOCUS ON NONETHELESS ANALYSTS SAID THE MARGIN EROSION MAY MEAN INTEL'S WHOPPING MARGINS HAVE PEAKED INTEL SEEMS TO BE GETTING SOME MARGIN DILUTION AS THE PRODUCT MIX CHANGES SAID MEL PHELPS SENIOR TECHNOLOGY ANALYST WITH HAMBRECHT & QUIST SEVERAL ANALYSTS SAID THEY WOULD LIKELY TRIM THEIR FOURTHQUARTER PROFIT PROJECTIONS FOR INTEL MR PHELPS FOR EXAMPLE SAID HE IS LIKELY TO SHAVE A SMALL AMOUNT OFF HIS PREVIOUS FOURTHQUARTER ESTIMATE OF 140 A SHARE INTEL'S RESULTS COULD INCREASE WALL STREET'S UNEASINESS ABOUT THE OVERALL STATE OF THE CHIP BUSINESS INVESTORS HAD BEEN AWAITING INTEL'S RESULTS ANXIOUSLY SINCE RIVAL ADVANCED MICRO LAST WEEK REPORTED DISAPPOINTING THIRDQUARTER EARNINGS OF 613 MILLION OR 61 CENTS A SHARE INVESTORS HAD BEEN EXPECTING ADVANCED MICRO TO REPORT PROFIT OF ABOUT 70 CENTS A SHARE THAT SHORTAGE PROMPTED WORRIES THAT PROFIT MARGINS MIGHT BE SHRIVELING INDUSTRYWIDE AND THAT SEMICONDUCTOR SALES GROWTH WHICH HAS BEEN FUELED BY PRICE CUTTING IN THE PERSONAL COMPUTER BUSINESS MIGHT BE EBBING INTEL'S BUSINESS HOWEVER REMAINS ESSENTIALLY STRONG AND ITS THIRDQUARTER FIGURES DON'T PROVIDE ANY CLEAR EVIDENCE OF INDUSTRYWIDE SLIPPAGE ANALYSTS SAID MOREOVER INTEL'S DOMINANCE OF THE CHIP MARKET POSITIONS IT TO BETTER WITHSTAND PRESSURES THAT MIGHT HURT OTHER CHIP MAKERS INTEL ARGUABLY HAS THE BEST MANAGEMENT IN THE INDUSTRY AND CLEARLY HAS THE BEST PRODUCT LINE SAID MARK EDELSTONE SENIOR CHIP ANALYST WITH PRUDENTIAL SECURITIES THE MARGINS MAY HAVE MAXED OUT BUT THE COMPANY IS VERY HEALTHY INTEL'S REVENUE FOR THE THIRD QUARTER ROSE 57 TO 224 BILLION FROM 143 BILLION A YEAR EARLIER IN LAST YEAR'S THIRD QUARTER INTEL EARNED 2408 MILLION OR 56 CENTS A SHARE FOR THE NINE MONTHS INTEL'S PROFIT MORE THAN DOUBLED TO 17 BILLION OR 386 A SHARE FROM 638 MILLION OR 149 A SHARE A YEAR EARLIER REVENUE ROSE 60 TO 639 BILLION FROM 399 BILLION A YEAR EARLIER THE YEAREARLIER PERSHARE FIGURES WERE ADJUSTED FOR A 2FOR1 STOCK SPLIT PAID IN JUNE 1993 ANDREW S GROVE INTEL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID INTEL WAS PARTICULARLY PLEASED WITH SHIPMENTS OF ITS PENTIUM CHIPS INTRODUCED A FEW MONTHS AGO THOSE CHIPS CARRY GROSS PROFIT MARGINS ESTIMATED AT 80 OR MORE WE ARE ON TRACK TO SHIP HUNDREDS OF THOUSANDS OF PENTIUMS IN 1993 AND MILLIONS NEXT YEAR MR GROVE SAID 9310120101 931012 BOND MARKETS ARE CLOSED NEW YORK BOND MARKETS WERE CLOSED YESTERDAY IN OBSERVANCE OF THE COLUMBUS DAY HOLIDAY 9310120100 931012 CREDIT RATINGS GREAT ATLANTIC & PACIFIC TEA CO MONTVALE NJ MOODY'S INVESTORS SERVICE INC SAID IT PLACED THE SENIOR LONGTERM DEBT AND COMMERCIALPAPER RATINGS OF THIS GROCERY STORE OPERATOR UNDER REVIEW FOR A POSSIBLE DOWNGRADE ABOUT 300 MILLION IN DEBT IS AFFECTED THE RATING AGENCY SAID ITS REVIEW WOULD CENTER ON A&P'S PROSPECTS CONCERNING CASH FLOW CAPITAL SPENDING AND FUNDING REQUIREMENTS A&P HAS STRUGGLED TO REGAIN EARNINGS MOMENTUM IN ITS CORE NORTHEAST AND CANADIAN MARKETS SINCE THE RECENT RECESSION 9310120098 931012 WHAT'S NEWS BUSINESS AND FINANCE PARAMOUNT'S BOARD AUTHORIZED THE COMPANY TO BEGIN INFORMATIONAL DISCUSSIONS TO EVALUATE QVC NETWORK'S 95 BILLION TAKEOVER OFFER AS QVC CONTINUED TO EXPLORE BRINGING IN POTENTIAL INVESTORS AS EXPECTED THE BOARD DIDN'T APPROVE FORMAL NEGOTIATIONS WITH QVC AND PARAMOUNT SAID IT IS PROCEEDING WITH ITS PLANNED MERGER WITH VIACOM CARDINAL DISTRIBUTION AGREED TO ACQUIRE WHITMIRE DISTRIBUTION FOR ABOUT 303 MILLION IN STOCK THE COMBINATION OF THE TWO FASTGROWING COMPANIES WILL CREATE THE THIRDLARGEST US DRUG WHOLESALER WITH EXPECTED REVENUE THIS YEAR OF ABOUT 6 BILLION HOECHST'S COSTLY OFFER FOR COPLEY PHARMACEUTICAL INDICATES THE GROWING IMPORTANCE AND VALUE OF THE GENERIC DRUG BUSINESS MEANWHILE WALL STREET IS TRYING TO PREDICT WHICH HEALTHCARE CONCERNS MIGHT BECOME CANDIDATES FOR TAKEOVERS OR BUSINESS COMBINATIONS ELI LILLY CHAIRMAN TOBIAS UNVEILED PLANS TO CUT 4000 SALARIED AND CONTRACT JOBS THROUGH EARLY RETIREMENTS AND REASSIGNMENTS TOBIAS SAID THE REDUCTION IN THE WORK FORCE IS JUST THE START OF A SHAKEUP AT THE DRUG MAKER BELL ATLANTIC AGREED TO ACQUIRE A 42 STAKE IN MEXICO'S GRUPO IUSACELL A BUDDING CELLULAR PROVIDER FOR 104 BILLION THE DEAL IS A PRICEY BID TO PLAY A ROLE IN BREAKING TELEFONOS DE MEXICO'S MONOPOLY ON LOCAL SERVICE INTEL'S THIRDQUARTER PROFIT MORE THAN DOUBLED TO 5844 MILLION HOW EVER THE RESULTS WERE A SLIGHT DISAPPOINTMENT TO ANALYSTS WHO FOCUSED ON A SMALL EROSION IN PROFIT MARGINS THE STOCK FELL 475 OR 68 TO 6550 INFINITY BROADCASTING AND WESTWOOD ONE AGREED TO COMBINE THEIR RADIONETWORK OPERATIONS THE TRANSACTION WOULD GIVE THE COMPANIES 40 OF THE RADIONETWORK MARKET AND WOULD MAKE INFINITY THE LARGEST WESTWOOD SHAREHOLDER WITH A 25 STAKE DEAN WITTER WAS ORDERED TO PAY 15 MILLION TO A FORMER BRANCH MANAGER WHO CONTENDS HE WAS FIRED FOR REFUSING TO CONDONE BROKERS' ILLEGAL ACTIONS AND SAYS HE WAS DEFAMED ON HIS TERMINATION NOTICE THE ARBITRATORS RECOMMENDED THAT THE NASD WEIGH FURTHER DISCIPLINING OF DEAN WITTER SCECORP ABRUPTLY PULLED OUT OF A 18 BILLION COALFIRED ELECTRIC GENERATING PLANT UNDER CONSTRUCTION IN MEXICO THE PROJECT HAS BEEN THE SUBJECT OF POLITICAL AND ENVIRONMENTAL TURMOIL MOTOROLA'S THIRDQUARTER NET DOUBLED TO 254 MILLION ON SURGING SALES OF ITS WIRELESS COMMUNICATIONS PRODUCTS AND SEMICONDUCTORS THE RESULTS EASILY TOPPED ANALYSTS' FORECASTS CONTINUING A SERIES OF STRONG QUARTERS THE CLINTON HEALTH PROPOSAL USED SOUND AND REASONABLE METHODS IN CALCULATING PRIVATESECTOR PREMIUMS A GROUP OF ACTUARIES SAID HOWEVER THEIR REVIEW DIDN'T COVER THE COST OR SAVINGS ESTIMATES FOR THE ENTIRE PLAN TOYOTA IS EXPECTED TO ANNOUNCE THAT IT WILL BUILD ITS NEW TOP SEDAN MODEL IN KENTUCKY THE MOVE WOULD CONTINUE A TREND TOWARD MORE US CARMAKING BY JAPANESE COMPANIES TRYING TO COUNTERACT THE SURGING YEN SEC CHAIRMAN LEVITT PLANS TO MEET WITH PARTICIPANTS IN THE MUNICIPAL BOND MARKET TO DISCUSS IMPROVING DISCLOSURE PRACTICES THE SESSION IS PART OF LEVITT'S CAMPAIGN TO ADDRESS PERCEIVED PROBLEMS IN THAT MARKET LONDON SHARES SLIPPED WITH THE FT100 INDEX LOSING 64 TO 31022 FRANKFURT STOCKS ROSE TO THEIR FIFTH CONSECUTIVE RECORD AS THE DAX 30STOCK INDEX CLIMBED 601 POINTS TO 201102 STOCKS DRIFTED HIGHER IN QUIET HOLIDAY TRADING THE DOW JONES INDUSTRIAL AVERAGE GAINED 867 POINTS TO 359341 THE DOLLAR STRENGTHENED THE BOND MARKET CLOSED FOR THE HOLIDAY BONDS MARKET WAS CLOSED FOR THE COLUMBUS DAY HOLIDAY COMMODITIES OIL 1877 A BARREL UP 22 CENTS DOW JONES FUTURES INDEX 12738 UP 058 SPOT INDEX 11951 UP 036 DOLLAR 10625 YEN UP 035 16048 MARKS UP 00023 9310120097 931012 INFINITY TO MERGE RADIO NETWORK WITH WESTWOOD UNDER THE COMPLEX DEAL BROADCASTERS WILL HAVE 40 OF THE US MARKET BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES INFINITY BROADCASTING CORP AND WESTWOOD ONE INC AGREED TO COMBINE THEIR RADIO NETWORK OPERATIONS WHICH WOULD GIVE THE COMPANIES A 40 SHARE OF THE US RADIONETWORK MARKET AND MAKE INFINITY THE LARGEST WESTWOOD ONE SHAREHOLDER WITH A 25 STAKE WITH TOTAL ANNUAL REVENUE OF 100 MILLION THE COMBINED NETWORKS WOULD HAVE ROUGHLY THE SAME MARKET SHARE AS RADIONETWORK LEADER CAPITAL CITIES/ABC INC SAID DREW MARCUS A MEDIA INDUSTRY ANALYST WITH ALEX BROWN & SONS IN NEW YORK UPON COMPLETION OF THE DEAL INFINITY'S 50YEAROLD CHIEF EXECUTIVE OFFICER MEL KARMAZIN WILL TAKE OVER AS CHIEF EXECUTIVE OF WESTWOOD ONE FROM NORMAN PATTIZ 50 WHO WILL REMAIN CHAIRMAN OF THE RADIO NETWORK OPERATOR HE FOUNDED TWO DECADES AGO MR KARMAZIN'S CHALLENGE WILL BE TO TURN AROUND WESTWOOD ONE WHICH HAS HAD LOSSES OF ABOUT 20 MILLION IN THREE OF THE PAST FOUR YEARS IN THE COMPLEX TRANSACTION WESTWOOD ONE WILL ACQUIRE UNISTAR RADIO NETWORKS INC WHICH NEW YORKBASED INFINITY ALREADY HAS AN OPTION TO ACQUIRE UNDER A PRIOR OPERATING AGREEMENT FOR 1013 MILLION INFINITY WILL BUY FIVE MILLION NEW COMMON SHARES OF WESTWOOD ONE FOR 3 EACH OR 15 MILLION INFINITY ONE OF THE US'S LARGEST OPERATORS OF INDEPENDENT RADIO STATIONS WITH PROPERTIES IN ALL OF THE TOP 10 MARKETS WILL HAVE AN OPTION TO BUY AN ADDITIONAL THREE MILLION WESTWOOD ONE SHARES AT THE SAME PRICE BOOSTING ITS STAKE TO 35 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY WESTWOOD SURGED 1 OR 29 TO 450 INFINITY CLASS A SHARES JUMPED 375 OR 82 TO 4925 THE TRANSACTION WOULD POOL WESTWOOD ONE'S STABLE OF RADIO PERSONALITIES INCLUDING LARRY KING AND CASEY KASEM WITH SUCH INFINITY STARS AS DICK CLARK AND G GORDON LIDDY THE CONVICTED WATERGATE CONSPIRATOR TURNED RADIO TALK SHOW HOST INFINITY'S MOST NOTORIOUS PERSONALITY IS SHOCK JOCK HOWARD STERN WHO'S RIBALD SYNDICATED MORNING BROADCASTS HAVE LED THE FEDERAL COMMUNICATIONS COMMISSION TO SLAP INFINITY AND ITS AFFILIATES WITH 11 MILLION IN FINES OVER THE PAST YEAR MR MARCUS OF ALEX BROWN SAID THE TRANSACTION COULD PROVE BENEFICIAL THERE ARE TREMENDOUS ADVANTAGES TO HAVING THE NATIONAL REACH OF WESTWOOD ONE AND UNISTAR COMBINED PLUS IT WILL GIVE WESTWOOD ONE ACCESS TO INFINITY'S TOPRATED STATIONS IN THE LARGE MARKETS HE SAID FOLLOWING ITS SOONTOBE COMPLETED ACQUISITIONS OF KRTHFM IN LOS ANGELES FOR A RECORD 110 MILLION AND WPGCFM AND AM IN WASHINGTON DC FOR 60 MILLION INFINITY WILL HAVE A TOTAL OF 25 STATIONS 16 OF THEM FM AND NINE AM WESTWOOD ONE HAS RECENTLY LEFT THE STATION OWNERSHIP BUSINESS THOUGH THE COMPANY CONTINUES TO BE UNPROFITABLE POSTING A NET LOSS OF 99 MILLION OR 66 CENTS A SHARE FOR THE SIX MONTHS ENDED MAY 31 THE LOSSES ARE NARROWING IN THE SECOND QUARTER THE NET LOSS WAS 730000 OR FIVE CENTS A SHARE COMPARED WITH 48 MILLION OR 32 CENTS A SHARE A YEAR AGO INFINITY HAD SECONDQUARTER NET INCOME OF 59 MILLION OR 31 CENTS A SHARE ON REVENUE OF 53 MILLION THE COMBINATION AGREED TO IN A LETTER OF INTENT IS SUBJECT TO EXECUTION OF DEFINITIVE AGREEMENTS RECEIPT OF FINANCING THE APPROVAL OF WESTWOOD ONE'S SHAREHOLDERS AND FEDERAL APPROVAL WITH REGARD TO ANTITRUST REQUIREMENTS 9310120096 931012 DEAN WITTER ORDERED TO PAY FIRED MANAGER BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BROKERAGE FIRMS WILL RECEIVE MORE THAN A SLAP ON THE WRIST IF FOUND TO HAVE FALSIFIED DATA ABOUT A MANAGER'S TERMINATION THAT'S THE MESSAGE IN A WIDELY WATCHED DEFAMATION CASE INVOLVING DEAN WITTER DISCOVER & CO AN ARBITRATION PANEL ORDERED DEAN WITTER TO PAY 15 MILLION TO A FORMER BRANCH MANAGER WHO CONTENDS HE WAS FIRED FOR REFUSING TO CONDONE ILLEGAL ACTIVITIES BY THE FIRM'S BROKERS AND WHO SAYS HE WAS DEFAMED ON HIS TERMINATION NOTICE KNOWN AS A U5 THE DECISION WHICH INCLUDED 750000 IN PUNITIVE DAMAGES IS THE SECONDLARGEST DEFAMATION AWARD LEVIED AGAINST A BROKERAGE FIRM INDUSTRY EXECUTIVES SAID IN A HIGHLY UNUSUAL ACTION THE NATIONAL ASSOCIATION OF SECURITIES DEALERS PANEL ALSO RECOMMENDED THE NASD INVESTIGATE WHETHER TO FURTHER DISCIPLINE DEAN WITTER THERE'S A VERY STRONG MESSAGE HERE DON'T FIDDLE WITH THOSE U5S SAYS SAMANTHA RABIN OF THE SECURITIES ARBITRATION COMMENTATOR A MAPLEWOOD NJ NEWSLETTER THESE SOCALLED U5S ARE PART OF BROKERS' PERMANENT RECORD OF EMPLOYMENT IN THE SECURITIES BUSINESS DEAN WITTER SAID IT WAS VERY DISAPPOINTED WITH THE AWARD AND WILL MOVE TO VACATE IT BUT ARBITRATION CASES ARE DIFFICULT TO OVERTURN TYPICALLY REVERSALS ARE GRANTED ONLY IN THE CASE OF EGREGIOUS BEHAVIOR BY ARBITRATORS THE CASE WAS FILED IN 1991 IN NASHVILLE TENN BY JOHN J GLENNON JR FORMERLY BRANCH MANAGER OF DEAN WITTER'S NASHVILLE OFFICE MR GLENNON 43 YEARS OLD SAYS HE WAS FIRED FROM HIS BRANCHMANAGER POSITION IN AUGUST 1990 BECAUSE HE REFUSED TO CONDONE AND INSTEAD REPORTED AND SOUGHT TO ELIMINATE ILLEGAL ACTIVITIES AT DEAN WITTER'S NASHVILLE OFFICE ACCORDING TO THE ARBITRATION PAPERS AMONG THOSE ACTIVITIES MR GLENNON ALLEGED WERE BROKERS FORGING CUSTOMER SIGNATURES WHEN HE QUESTIONED ONE BROKER ON THE FORGERIES MR GLENNON SAYS IN PAPERS FILED WITH ARBITRATORS THE BROKER RESPONDED WHAT'S THE BIG DEAL THAT'S THE WAY THINGS HAVE ALWAYS BEEN DONE AROUND HERE DEAN WITTER DENIES THERE WERE ANY FORGERIES OR ILLEGAL ACTIVITY AT THE NASHVILLE BRANCH MR GLENNON WAS DEMOTED TO A STOCK SALESMAN HE SAYS IN THE ARBITRATION PAPERS SLASHING HIS ANNUAL PAY FROM ABOUT 150000 TO 60000 PLUS COMMISSIONS BUT IN OCTOBER 1991 DEAN WITTER FIRED MR GLENNON FROM THE SALES POSITION BECAUSE HE HAD REFUSED TO PAY DEAN WITTER AMOUNTS IT ALLEGEDLY HAD OVERPAID HIM IN NOVEMBER 1991 DEAN WITTER FILED A U5 WITH THE NASD IN WHICH IT ANSWERED YES TO THE QUESTION CURRENTLY IS OR AT TERMINATION WAS THE INDIVIDUAL UNDER INTERNAL REVIEW FOR FRAUD OR WRONGFUL TAKING OF PROPERTY OR VIOLATING INVESTMENTRELATED STATUTES REGULATIONS RULES OR INDUSTRY STANDARDS OF CONDUCT MR GLENNON IN PAPERS FILED WITH ARBITRATORS SAYS DEAN WITTER IS SEEKING TO EXACT REVENGE BY PERMANENTLY DAMAGING HIS REPUTATION IN THE SECURITIES INDUSTRY BECAUSE OF HIS REFUSAL TO CONDONE THE ALLEGEDLY ILLEGAL ACTIVITIES BY DEAN WITTER BROKERS THE NASD PANEL ORDERED DEAN WITTER TO CHANGE THE U5 TO CORRECT THE FALSE STATEMENT BY SAYING THAT MR GLENNON'S TERMINATION WAS DUE TO A DISPUTE OVER COMPENSATION JEFFREY LIDDLE OF LIDDLE O'CONNOR FINKELSTEIN & ROBINSON MR GLENNON'S ATTORNEY SAYS THE DECISION IS A CLEAR VINDICATION OF MR GLENNON'S EFFORTS TO CLEAN UP THE DEAN WITTER NASHVILLE BRANCH AND TO BE FREE FROM LIBEL SLANDER AND DISPARAGEMENT AS A CONSEQUENCE OF HIS EFFORTS 9310120095 931012 INTERNATIONAL SATANIC VERSES' PUBLISHER IN NORWAY HIT BY GUNMAN OSLO REUTER A NORWEGIAN PUBLISHER WHOSE COMPANY TRANSLATED SALMAN RUSHDIE'S THE SATANIC VERSES WAS SHOT AND SERIOUSLY WOUNDED OUTSIDE HIS HOME THE THIRD ATTACK AGAINST A FOREIGN PUBLISHER OF THE BOOK WILLIAM NYGAARD 50 YEARS OLD DIRECTOR OF PUBLISHER ASCHEHOUG FORLAG WAS SHOT THREE TIMES FROM BEHIND AND LEFT LYING BY THE HOUSE IN AN OSLO SUBURB DOCTORS AT ULLEVAAL HOSPITAL SAID HIS CONDITION WAS SERIOUS BUT STABLE POLICE SAID THEY DIDN'T HAVE ANY SUSPECTS BUT MADE SPECIAL NOTE THAT MR NYGAARD'S COMPANY PUBLISHED THE NORWEGIAN VERSION OF THE SATANIC VERSES WHEN THE NOVEL CAME OUT IRAN'S AYATOLLAH RUHOLLAH KHOMEINI ISSUED A DEATH ORDER AGAINST MR RUSHDIE SAYING THE BOOK WAS BLASPHEMOUS TO ISLAM MR RUSHDIE HAS BEEN IN HIDING SINCE ASCHEHOUG PUBLISHED THE NOVEL IN NORWAY IN 1989 IT WAS ONE OF THE FIRST FOREIGN TRANSLATIONS OF THE BOOK THE JAPANESE TRANSLATOR OF THE BOOK HITOSHI IGARASHI WAS STABBED TO DEATH IN 1991 ETTORE CAPRIOLO WHO TRANSLATED MR RUSHDIE'S BOOK INTO ITALIAN WAS INJURED IN A KNIFING IN MILAN THE SAME YEAR 9310120094 931012 WHO'S NEWS RJR ASSIGNS DOMESTIC CEO OF TOBACCO TO GLOBAL POST NEW YORK RJR NABISCO HOLDINGS CORP NAMED DOMESTIC TOBACCO CHIEF JAMES W JOHNSTON TO THE NEWLY CREATED POSITION OF CHAIRMAN AND CHIEF EXECUTIVE REYNOLDS TOBACCO WORLDWIDE MR JOHNSTON WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OF RJR'S DOMESTIC TOBACCO BUSINESS RJR HAS LAGGED BEHIND ITS RICHER RIVAL PHILIP MORRIS COS IN ESTABLISHING A GLOBAL NETWORK THE APPOINTMENT OF MR JOHNSTON THE FIRST SIGNIFICANT PERSONNEL DECISION BY RJR NABISCO CHAIRMAN AND CHIEF EXECUTIVE CHARLES M HARPER SINCE HE JOINED THE COMPANY THIS YEAR IS A SIGN THAT MR HARPER HOPES TO BE MORE AGGRESSIVE IN BUILDING RJR'S OVERSEAS TOBACCO BUSINESS RJR ALSO ANNOUNCED THE RETIREMENT OF DALE F SISEL CURRENT PRESIDENT AND CHIEF EXECUTIVE OF RJ REYNOLDS INTERNATIONAL TOBACCO MR SISEL WHO WILL RETIRE AT THE END OF THE YEAR AND SERVE AS A CONSULTANT TO THE COMPANY WILL BE SUCCEEDED BY ANTHONY J BUTTERWORTH FORMER CHIEF EXECUTIVE OFFICER OF LONDON INTERNATIONAL PLC A PERSONAL PRODUCTS COMPANY MR BUTTERWORTH HAS A BACKGROUND IN INTERNATIONAL MARKETING 9310120093 931012 NISSAN'S US SALES ARM MULLS ISSUING CREDIT CARD CARSON CALIF NISSAN MOTOR CO'S US SALES ARM CONFIRMED REPORTS THAT THE COMPANY IS CONSIDERING INTRODUCING ITS OWN CREDIT CARD THAT WOULD OFFER CASH REBATES ON VEHICLES SOLD BY THE AUTO MAKER AUTOMOTIVE NEWS A TRADE PUBLICATION SAID NISSAN IS EXPECTED TO INTRODUCE A CREDIT CARD NEXT YEAR SIMILAR TO THOSE OFFERED BY GENERAL MOTORS CORP AND FORD MOTOR CO WHICH OFFER REBATES ON PURCHASES BUT NISSAN'S CARD MAY GO A STEP FURTHER AUTOMOTIVE NEWS REPORTED YESTERDAY THAT NISSAN WOULD HONOR REBATES ACCRUED ON CREDIT CARDS ISSUED BY FORD AND GM NISSAN'S CARD WOULD BE A FIRST FOR JAPANESE AUTO MAKERS NISSAN WOULDN'T DISCUSS DETAILS OF A PROPOSED CREDIT CARD WE ARE ALWAYS REVIEWING A VARIETY OF PROGRAMS TO HEIGHTEN CUSTOMER SERVICE A NISSAN SPOKESWOMAN SAID YESTERDAY BUT THESE ACTIVITIES ARE EXPLORATORY ONLY WITH NO TIMETABLE FOR DECISIONMAKING SET 9310120091 931012 SAKS AND DESIGNER ROEHM SET CATALOG SHOP VENTURE NEW YORK SAKS FIFTH AVENUE SAID IT ENTERED A JOINT VENTURE WITH CAROLYNE ROEHM IN WHICH THE RETAILER WILL PUBLISH THE DESIGNER'S CATALOG AND OPEN CAROLYNE ROEHM SHOPS IN THREE STORES SAKS SAID THE EXCLUSIVE ARRANGEMENT INCLUDES PUBLISHING THE CAROLYNE ROEHM HOLIDAY 1993 CATALOGUE IN NOVEMBER SAKS PLANS TO OPEN ROEHM SHOPS IN ITS NEW YORK SAN FRANCISCO AND PALM BEACH FLA STORES SAKS WITH 59 STORES IN 22 STATES IS OWNED BY INVESTCORP A BAHRAINBASED INVESTOR GROUP MS ROEHM CLOSED HER MONEYLOSING COUTURE HOUSE IN 1991 REPLACING IT LAST SPRING WITH A MAILORDER CATALOG OF 500 BLAZERS AND 100 BLOUSES THE SAKS CATALOG WILL FEATURE HER COLLECTION OF CLOTHING ACCESSORIES SHOES AND HOLIDAY GIFTS MS ROEHM IS MARRIED TO BUT LEGALLY SEPARATED FROM WALL STREET TAKEOVER KING HENRY KRAVIS WE ENVISION THIS INITIAL VENTURE AS LAYING THE FOUNDATION FOR ONGOING COLLABORATION BETWEEN SAKS AND CAROLYNE ROEHM SAID PHILIP B MILLER SAKS CHAIRMAN AND CHIEF EXECUTIVE 9310120090 931012 WHO'S NEWS MEDCO CEO BRADDOCK TO RESIGN RAISING POSSIBILITY HE MAY GET JOB ELSEWHERE BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL MONTVALE NJ RICHARD BRADDOCK SAID HE WILL RESIGN AS CHIEF EXECUTIVE OFFICER OF MEDCO CONTAINMENT SERVICES INC NEXT MONDAY RAISING THE POSSIBILITY THAT HE IS IN LINE FOR A TOP JOB AT ANOTHER MAJOR COMPANY THE 52YEAROLD MR BRADDOCK IS A DIRECTOR OF EASTMAN KODAK CO WHICH CURRENTLY IS LOOKING FOR A NEW CHIEF EXECUTIVE MR BRADDOCK DECLINED TO COMMENT ON WHAT HIS NEXT MOVE WILL BE HE DID SAY HIS DEPARTURE FROM MEDCO AND THE KODAK JOB HUNT ARE TOTALLY COINCIDENTAL MR BRADDOCK WHOSE NAME WAS ON A SHORT LIST OF CONTENDERS PRESENTED TO KODAK'S BOARD LAST MONTH HAS DECLINED TO RULE HIMSELF OUT OF THE RACE THE ROCHESTER NY PHOTOGRAPHY HEALTH CARE AND CHEMICALS COMPANY IS EXPECTED TO NAME A NEW CHIEF BEFORE THE END OF THE YEAR MR BRADDOCK ALSO WOULDN'T TALK ABOUT HIS REASONS FOR LEAVING MEDCO EXCEPT TO SAY THAT HE HAD A GOOD EXPERIENCE WORKING AT THE COMPANY WHICH OPERATES THE LARGEST MAILORDER PHARMACY BUSINESS IN THE US MEDCO EXECUTIVES AGREED THAT MR BRADDOCK LEFT ON FRIENDLY TERMS MEDCO'S CHAIRMAN MARTIN WYGOD SAID HE BELIEVES MR BRADDOCK'S DEPARTURE IS CLOSELY RELATED TO THE PENDING ACQUISITION OF MEDCO BY MERCK & CO THAT 6 BILLION TRANSACTION WILL MAKE MEDCO A MAJOR DIVISION OF THE LEADING US PHARMACEUTICAL MANUFACTURER BUT IT ALSO IS EXPECTED TO MEAN LESS LATITUDE FOR MEDCO'S FREEWHEELING MANAGEMENT TEAM MR BRADDOCK DIDN'T JOIN MEDCO TO BECOME PART OF A SUBSIDIARY OF A MUCH LARGER PUBLIC COMPANY MR WYGOD SAID EVER SINCE THE MERCK/MEDCO TRANSACTION WAS ANNOUNCED IN JULY ANALYSTS HAVE SPECULATED THAT MR BRADDOCK MIGHTN'T MAKE THE SWITCH TO MERCK MR BRADDOCK A WELLREGARDED EXECUTIVE WITH A BACKGROUND IN BANKING AND THE FOOD INDUSTRY WAS RECRUITED TO MEDCO LESS THAN A YEAR AGO AFTER HAVING SPENT TWO DECADES AT CITICORP AT CITICORP HE ROSE TO THE NO 2 JOB OF PRESIDENT BUT HE IS BELIEVED TO HAVE HAD A FALLINGOUT WITH CITICORP CHAIRMAN JOHN REED MR BRADDOCK RESIGNED AS CITICORP PRESIDENT LAST YEAR FOR MR BRADDOCK HIS YEAR AT MEDCO WILL PROVE QUITE LUCRATIVE HE HOLDS OPTIONS ON 125 MILLION MEDCO SHARES MOST OF THEM EXERCISABLE AT PRICES UNDER 30 A SHARE MEDCO STOCK LATELY HAS BEEN TRADING AT ABOUT 36 A SHARE AND IS VALUED AT ABOUT 38 A SHARE IN THE MERCK TRANSACTION WHILE MANY OF MR BRADDOCK'S OPTIONS AREN'T IMMEDIATELY EXERCISABLE ESTIMATES ARE THAT HE WILL COLLECT AT LEAST 12 MILLION FOR HIS OPTIONS AS WELL AS SEVERAL MILLION ADDITIONAL DOLLARS TO TERMINATE OTHER ASPECTS OF HIS MEDCO CONTRACT DETAILS OF THE SETTLEMENT ARE EXPECTED TO BE DISCLOSED IN MEDCO'S PROXY STATEMENT TO BE FILED LATER THIS WEEK MEDCO SAID IT WON'T PICK A DIRECT SUCCESSOR TO MR BRADDOCK INSTEAD THREE LONGTIME MEDCO EXECUTIVES WILL DIVIDE UP HIS DUTIES AND REPORT TO MR WYGOD THEY ARE JAMES MANNING SENIOR EXECUTIVE VICE PRESIDENT FOR FINANCE AND ADMINISTRATION PER LOFBERG SENIOR EXECUTIVE VICE PRESIDENT FOR STRATEGIC PLANNING AND MARKETING AND ROGER C HOLSTEIN SENIOR EXECUTIVE VICE PRESIDENT FOR SALES AND MARKETING MEDCO ALSO SAID THAT MR BRADDOCK WILL RESIGN OCT 18 AS CHIEF EXECUTIVE AND A DIRECTOR OF SYNETIC INC WHICH IS 588OWNED BY MEDCO AND WILL STEP DOWN AS A DIRECTOR OF MEDICAL MARKETING GROUP INC WHICH IS 549OWNED BY MEDCO 9310120089 931012 BUSINESS BRIEF SPRINT CORP TELECOMMUNICATIONS FIRM EXPECTS THIRDPERIOD CHARGE SPRINT CORP SAID IT EXPECTS TO TAKE A CHARGE OF 56 MILLION OR 16 CENTS A SHARE IN THE THIRD QUARTER FOR RESTRUCTURINGS RETIREMENT OF DEBT AND NEW TAX LAWS THE KANSAS CITY MO TELECOMMUNICATIONS COMPANY SAID AN AFTERTAX CHARGE OF 28 MILLION OR EIGHT CENTS A SHARE IS DUE TO CORPORATE REALIGNMENTS THAT WILL TRIM ABOUT 10 OF THE 10000 WORKERS IN ITS LONGDISTANCE BUSINESS THE CHARGE ALSO INCLUDES COSTS RELATED TO SPRINT'S MERGER WITH CENTEL CORP EARLIER THIS YEAR SPRINT SAID THE 1993 TAX LAWS WILL RESULT IN A CHARGE OF 13 MILLION OR FOUR CENTS A SHARE DEBT REFINANCINGS WILL RESULT IN A CHARGE OF 15 MILLION OR FOUR CENTS A SHARE IN THE 1992 THIRD QUARTER SPRINT REPORTED NET INCOME OF 1096 MILLION OR 49 CENTS A SHARE ON REVENUE OF 233 BILLION 9310120088 931012 ELI LILLY TO CUT 4000 SALARIED CONTRACT JOBS REASSIGNMENTS RETIREMENTS PARE WAGE STAFF 625 CHIEF VOWS SHAKEUP BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL ELI LILLY & CO'S NEW CHAIRMAN IN A MOVE TO STREAMLINE THE INDIANAPOLIS DRUG COMPANY ANNOUNCED PLANS TO CUT 4000 SALARIED AND CONTRACT JOBS THROUGH EARLY RETIREMENTS AND REASSIGNMENTS RANDALL L TOBIAS WHO BECAME CHAIRMAN AND CHIEF EXECUTIVE OFFICER LAST JUNE IN A BOARDROOM COUP SAID THE STEP WHICH WILL REDUCE THE SALARIED WORK FORCE BY 625 IS JUST THE BEGINNING OF A SHAKEUP OF THE ONCESTAID AND PROSPEROUS DRUG MAKER LILLY HAS BEEN PUMMELED BY DISAPPOINTING EARNINGS AND OTHER SETBACKS IN RECENT QUARTERS THERE IS A NEED TO FUNDAMENTALLY REEXAMINE WHAT WE DO AND HOW WE DO IT MR TOBIAS SAID IN AN INTERVIEW WE ARE LOOKING AT THE BUSINESSES WE ARE IN AND HAVE ONLY BEGUN TO TOUCH THE SURFACE THE COMPANY SAID THE JOB REDUCTIONS INCLUDING THE LAYOFFS OF 25 PEOPLE IN ITS VIENNA OFFICE WILL RESULT IN A FOURTHQUARTER CHARGE WHICH HASN'T YET BEEN SPECIFIED THE COMPANY'S SHARES ROSE 350 OR 7 TO CLOSE AT 53625 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE MOVES WHILE SIMILAR TO THE CUTBACKS AT OTHER PHARMACEUTICAL HOUSES ARE AN ABRUPT DEPARTURE FOR LILLY THE LARGEST PRIVATE EMPLOYER IN INDIANAPOLIS BECAUSE OF PRICING AND OTHER PRESSURES IN THE DRUG BUSINESS BIG PLAYERS SUCH AS JOHNSON & JOHNSON AND MERCK & CO HAVE ALREADY ANNOUNCED PLANS TO CUT STAFF THROUGH EARLY RETIREMENT PROGRAMS THE REDUCTIONS INCLUDE AN EARLY RETIREMENT PACKAGE DESIGNED TO LOP OFF 2000 OF THE COMPANY'S 32000 POSITIONS BY MID1994 ELIGIBLE EMPLOYEES CURRENTLY WORK IN THE US AND IN FOUR FOREIGN COUNTRIES LILLY ALSO PLANS TO ELIMINATE SOME 2000 CONTRACTUAL AND CONSULTING EMPLOYEES AND FILL THEIR JOBS WITH SALARIED STAFFERS THESE JOBS INCLUDE MAILROOM FOOD SERVICE CATERING MAINTENANCE AND LANDSCAPING DUTIES LILLY HAD ENJOYED AN UNBROKEN STRING OF PROFITABLE QUARTERS BEFORE REPORTING ITS FIRSTEVER QUARTERLY LOSS FOR THE THIRD QUARTER OF 1992 NET INCOME HAS BEEN DISAPPOINTING EVER SINCE AND WHILE THERE ARE SOME BRIGHT SPOTS IN LILLY'S LONGTERM DRUGDEVELOPMENT PIPELINE NOTHING STELLAR SEEMS LIKELY FOR THE NEXT COUPLE OF YEARS AT LEAST BY MOSTLY EMPLOYING COSTCUTTING METHODS THAT ARE LESS DRACONIAN THAN OUTRIGHT LAYOFFS MR TOBIAS FULFILLS A PLEDGE HE MADE UPON ASSUMING THE TOP JOB TO DO EVERYTHING IN HIS POWER TO AVOID MASS FIRINGS INDEED HE HAS SAID THAT HE CONSIDERS WIDERANGING LAYOFFS EMBLEMATIC OF MANAGEMENT FAILURE MR TOBIAS WAS AN EXECUTIVE WITH AMERICAN TELEPHONE & TELEGRAPH CO BEFORE SUCCEEDING VAUGHN D BRYSON AS LILLY'S CHIEF EXECUTIVE OFFICER RONALD NORDMANN A DRUGINDUSTRY ANALYST WITH PAINEWEBBER DESCRIBED THE MOVES AS OVERDUE AT LILLY AND IN LINE WITH WHAT THE PHARMACEUTICAL INDUSTRY HAS BEEN DOING TO MAINTAIN RESPECTABLE PROFITS IN A MANAGED CARE ENVIRONMENT BUT HE QUESTIONED WHETHER THE STAFFING CUTS MIGHT HINDER LILLY'S ABILITY TO BECOME MORE OF A PLAYER OVERSEAS THE COMPANY HAD BEEN SLOW TO GO AFTER FOREIGN BUSINESS AND LAGS BEHIND OTHER PHARMACEUTICAL MAKERS IN FOREIGN STAFFING MR TOBIAS IN THE INTERVIEW SAID THE OFFERS OF EARLY RETIREMENT TO STAFFERS ABROAD DON'T SIGNAL A RETRENCHMENT IN FOREIGN MARKETS HE SAID LILLY MAY WELL HIRE NEW WORKERS IN ASIA I WOULD NOT BE SURPRISED IF WE ADDED 200 PEOPLE IN JAPAN AND SINGAPORE HE SAID 9310120087 931012 SMALL STOCK FOCUS INDEXES REACH RECORDS AMID REBOUND IN TECHNOLOGY ISSUES DESPITE INTEL DROP BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK INVESTORS DECIDED NOT TO HOLD A COLUMBUS DAY SALE AND BID SMALLCOMPANY STOCKS HIGHER INSTEAD DESPITE A TOUGH DAY FOR INTEL CORP MAJOR INDEXES SET NEW CLOSING HIGHS THE RUSSELL 2000 INDEX WHICH MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION ISSUES TRADED OVER THE COUNTER AND ON THE MAJOR EXCHANGES JUMPED 107 POINTS OR 042 TO END AT 25503 ABOVE ITS RECORD LAST WEDNESDAY OF 25434 THE NASDAQ COMPOSITE INDEX CLIMBED 338 OR 044 TO 76765 BREAKING THROUGH ITS RECORD OF 76484 HIT LAST MONDAY TECHNOLOGY STOCKS FELL INITIALLY FOLLOWING THE RELEASE OF A DISAPPOINTING THIRDQUARTER EARNINGS REPORT FROM INTEL BUT THE GROUP MANAGED TO CLAW ITS WAY HIGHER BY THE CLOSE INTEL OF SANTA CLARA CALIF SLIPPED 4 3/4 TO 65 1/2 FOLLOWING ITS RELEASE OF NET INCOME OF 133 A SHARE FOR THE QUARTER WHICH FELL ONE CENT SHORT OF ANALYSTS' EXPECTATIONS THOUGH IT WAS MORE THAN DOUBLE THE YEAREARLIER'S EARNINGS BUT INTEL'S GROSS PROFIT MARGIN FELL BELOW THE SECONDQUARTER LEVEL THE CHIP MAKER TOPPED THE NASDAQ'S MOST ACTIVES LIST WITH 201 MILLION SHARES ABOUT FIVE TIMES THE AVERAGE DAILY NUMBER ASIDE FROM INTEL HOLIDAY TRADING KEPT NASDAQ NATIONAL MARKET VOLUME AT A LIGHT 211513600 SHARES COMPARED WITH 239608500 SHARES ON FRIDAY ADVANCING NASDAQ ISSUES RAN AHEAD OF RETREATERS 1570 TO 1225 MIKE RAIL HEAD OF INSTITUTIONAL SALES TRADING AT DONALDSON LUFKIN & JENRETTE SAID APART FROM THE HEAVY INTEL RELATED ACTION MOST OF TODAY'S ACTION CONSISTED OF REMAINING ORDERS COMING FROM FRIDAY WE DIDN'T SEE A LOT OF NEW BUSINESS HE SAID MR RAIL SAID THERE'S SOME CAUTION HEADING INTO THE REST OF THE WEEK AS MARKET PLAYERS TRY TO SIDESTEP ANY POTENTIAL EARNINGS LAND MINES THAT MAY OCCUR OVER THE NEXT FEW SESSIONS SEVERAL BIG TECHNOLOGY CONCERNS ARE DUE TO REPORT CORPORATE PROFITS BEFORE FRIDAY INCLUDING APPLE COMPUTER AND SUN MICROSYSTEMS SMALLER SEMICONDUCTOR ISSUES FOUGHT OFF EARNINGS FEARS WELL CIRRUS LOGIC OF FREMONT CALIF JUMPED 2 3/8 TO 34 1/8 LATTICE SEMICONDUCTOR CORP OF HILLSBORO ORE GAINED 7/8 TO 23 7/8 AND CYRIX CORP OF RICHARDSON TEXAS ADDED 1 3/4 TO 23 PAT CONROY SENIOR NASDAQ TRADER AT KIDDER PEABODY & CO SAID SOME OF THE STRENGTH IN TECHNICAL ISSUES IS DUE TO RECENT PRICE DECLINES A NUMBER OF THESE ISSUES ARE ALL UP BIG TODAY AFTER THE MARKET TAKING A BREATHER OF LATE CONROY SAID THOUGH EARNINGS WORRIES STILL HOLD CENTER STAGE NOBODY HAS ANY STRONG CONVICTIONS ABOUT THESE IT'S DIFFERENT SECTORS AND DIFFERENT STOCKS AND WE'RE GOING TO SEE THE MARKET REACT DAY TO DAY THE BOND MARKET WAS CLOSED FOR THE HOLIDAY ON THE DOWN SIDE RAINBOW TECHNOLOGIES OF IRVINE CALIF SKIDDED 5 TO 20 1/2 THE SOFTWARE PROTECTION PRODUCTS CONCERN ESTIMATES IT EARNED BETWEEN 21 CENTS AND 24 CENTS A SHARE FOR THE THIRD QUARTER COMPARED WITH 25 CENTS A SHARE IN THE YEAREARLIER PERIOD TYCO TOYS SAGGED 1 1/8 TO 11 3/4 ON THE BIG BOARD THE MOUNT LAUREL NJ TOY COMPANY SAID IT EXPECTS ITS THIRDQUARTER NET INCOME TO BE SHARPLY BELOW THE 51 CENTS A SHARE POSTED A YEAR AGO TYCO ADDED THAT IT WILL NOT RECORD A PROFIT FOR THE YEAR A PAINEWEBBER INC UPGRADE TO BUY FROM ATTRACTIVE DROVE MUSICLAND STORES UP 5/8 TO 18 3/4 ON THE NEW YORK STOCK EXCHANGE THE BROKERAGE FIRM REPORTEDLY PUT A 12TO18 MONTH PRICE TARGET OF 28 ON THE MINNEAPOLISBASED SPECIALTY RETAILER'S STOCK IN ACQUISITIONRELATED NEWS FLEET FINANCIAL GROUP NYSE SAID IT AGREED TO ACQUIRE STERLING BANCSHARES OF WALTHAM MASS FOR ABOUT 125 MILLION IN STOCK OR 3950 FOR EACH STERLING COMMON SHARE STERLING SURGED 5 3/4 TO 36 1/4 SALEM SPORTSWEAR OF HUDSON NH GOT A 3 1/4POINT BOOST TO 12 1/2 AFTER SAYING IT HAS AGREED TO BE ACQUIRED BY AMERICAN STOCK EXCHANGETRADED FRUIT OF THE LOOM FOR 1275 A SHARE OR ABOUT 1326 MILLION IN CASH SALEM DESIGNS MAKES AND MARKETS SPORTS APPAREL WESTWOOD ONE OF CULVER CITY CALIF GAINED 1 TO 4 1/2 FOLLOWING NEWS THAT IT AND INFINITY BROADCASTING SIGNED A LETTER OF INTENT TO BUY UNISTAR RADIO NETWORKS RADIO NETWORK BUSINESS FOR ABOUT 1013 MILLION INFINITY BROADCASTING OF NEW YORK SOARED 3 3/4 TO 49 1/4 GENERIC DRUG COMPANIES SHOT HIGHER ON NEWS THAT HOECHST AG PLANS TO ACQUIRE A STAKE IN COPLEY PHARMACEUTICAL PROPONENTS SAY THE HUGE PREMIUM ASSIGNED TO COPLEY IS BECAUSE OF ITS PRODUCT PIPELINE ADDING THAT GENERIC DRUG MAKERS WILL CONTINUE TO GARNER HIGH PREMIUMS FROM BRANDED PHARMACEUTICAL MAKERS BIOCRAFT LABORATORIES NYSE SURGED 3 1/2 OR 117 TO 33 3/8 AFFINITY BIOTECH ROSE 1/4 TO 3 1/2 AND ZENITH LABORATORIES OF NORTHVALE NJ JUMPED 4 1/4 TO 81 3/8 HOWEVER COPLEY ITSELF FELL 2 7/8 TO 46 7/8 REFLECTING ANALYSTS' COMMENTS THAT HOECHST IS OVERPAYING MEANWHILE ATLANTIC COAST AIRLINES HAS SLUMPED 2 7/8 TO 9 3/8 THOUGH THE COMPANY SAID ITS REVENUE PASSENGER MILES CLIMBED LAST MONTH FROM A YEAR EARLIER ITS LOAD FACTOR WAS LOWER ATLANTIC COAST SAID ITS YIELD HAS DETERIORATED SOMEWHAT DUE TO A HIGHERTHANANTICIPATED RATE OF FREQUENT FLIER REDEMPTION 9310120086 931012 AUTOMOBILES BY JACQUELINE MITCHELL WHEN THE GOVERNMENT SET A FUTURE REQUIREMENT FOR AIR BAGS BACK IN 1984 THE AUTO INDUSTRY GROANED AND SET OUT TO COMPLY BY THE 1998 MODEL YEAR FOR CARS AND BY THE FOLLOWING YEAR FOR MINIVANS AND LIGHT TRUCKS BUT THANKS TO CUSTOMER DEMAND THE FUTURE IS NOW IN THE JUSTSTARTED 1994 MODEL YEAR IT'S GOING TO BE TOUGH TO SELL A CAR THAT DOESN'T HAVE DRIVER AND PASSENGER SIDE AIR BAGS HONDA MOTOR FOR EXAMPLE ACCELERATED ITS PHASEIN SCHEDULE AND THIS YEAR IS OFFERING DUAL AIR BAGS ON ALL ITS HONDA CARS IN THE US IT'S BECOME THE PRICE OF ENTRY SAYS THOMAS G ELLIOTT EXECUTIVE VICE PRESIDENT US SALES MOST OF HIS FELLOW MARKETERS OF JAPANESE CARS ARE DOING THE SAME THING WHICH CARS DON'T HAVE DUAL AIR BAGS THIS FALL WELL GENERAL MOTORS IS THE FURTHEST BEHIND SOME INDUSTRY ANALYSTS ATTRIBUTE A LOT OF GM'S LOSS OF MARKET SHARE IN THE PAST MODEL YEAR TO ITS TARDINESS ON AIR BAGS JUDGING BY THE LIST OF GM CARS STILL WITHOUT DUAL BAGS GM'S MARKET SHARE MAY BE IN FOR ANOTHER POUNDING CHEVY LUMINA AND CAVALIER PONTIAC SUNBIRD OLDS CUTLASS CIERA ACHIEVA AND CUTLASS SUPREME AND SATURN DON'T HAVE DUAL BAGS ALTHOUGH SOME HAVE DRIVERSIDE BAGS GM ACKNOWLEDGES THAT ABOUT 40 OF ITS 33 CAR LINES FOR 1994 WON'T HAVE DUAL AIR BAGS THAT COMPARES WITH LESS THAN 25 EACH FOR FORD MOTOR AND CHRYSLER GM SAYS ITS STUDIES HAD INDICATED CONSUMERS WERE MORE INTERESTED IN ANTILOCKBRAKE SYSTEMS THAN AIR BAGS SO THE NO 1 AUTO MAKER WAS MORE AGGRESSIVE ABOUT OFFERING ABS ELSEWHERE IT'S HARD TO FIND A CAR LINE THAT DOESN'T OFFER AT LEAST ONE AIR BAG ONES THAT DON'T BESIDES THE CAVALIER AND SUNBIRD ARE THE PLYMOUTH SUNDANCE DODGE SPIRIT FORD TEMPO AND MERCURY TOPAZ MOST OF THEM ARE DUE FOR REDESIGN AND AIR BAGS BEFORE LONG WHAT'S NEW SHRINKWRAP FOR CARS WELL NOT EXACTLY BUT MORE CARS MOSTLY WITH JAPANESE LABELS ARE BEING SHIPPED TO DEALERS WITH A WHITE PLASTIC FILM COATING THE HOOD ROOF AND REAR DECK THE PRODUCT HAS BECOME WIDELY USED IN JAPAN AND IS SHOWING UP IN THE US ON IMPORTED CARS AND ON VEHICLES MADE IN NORTH AMERICA BY HONDA AND NISSAN MOTOR OTHERS ARE STUDYING IT THE WRAPPING PROTECTS A NEW CAR FROM THE NASTY THINGS THAT CAN SPOIL A SHINY PAINT JOB ON THE WAY TO THE SHOWROOM SUCH AS RUSTY RAIL DUST SOOT SMOKE BIRD DROPPINGS AND ACID RAIN EVEN A SMALL AMOUNT OF ACID IN RAIN DROPLETS ON A HOT SURFACE WILL ETCH INTO THE PAINT SAYS EMIL HASSAN A NISSAN SENIOR VICE PRESIDENT UNTIL NOW CAR MAKERS HAVE APPLIED VARIOUS PROTECTIVE WAX COATINGS AT THE FACTORY THE DEALERS THEN HAVE HAD TO REMOVE THE COATINGS USING SPECIAL KEROSENE ALKALI OR DETERGENTBASED SOLUTIONS WHICH IS LABOR INTENSIVE AND PRODUCES ENVIRONMENTALLY OFFENSIVE STUFF TO DISPOSE OF THE JOB BECOMES EVEN TOUGHER IF THE COATINGS GET BAKED ON IN TRANSIT THAT'S WHY JAPAN'S KANSAI PAINT DEVELOPED A SPECIAL POLYOLEFIN FILM AND ADHESIVE FOR CARS THE PRODUCT IS MARKETED AS RAPGARD IN THE US BY DUPONTKANSAI AUTOMOTIVE COATINGS A JOINT VENTURE WITH DUPONT CAR DEALERS SIMPLY PEEL THE FILM OFF AND THROW IT AWAY WHILE DUPONTKANSAI SAYS THE FILM ISN'T YET RECYCLABLE IT MAY BE EVENTUALLY IT'S ONE THING TO FIND JUST THE RIGHT NAME TO CAPTURE THE VERY ESSENCE OF A NEW CAR OR TRUCK BUT SOMETIMES IT'S EVEN MORE DIFFICULT TO FIND ONE THAT HASN'T BEEN USED THAT'S WHY YOU'RE HEARING ODD NEW NAMES SUCH AS Q45 ALTIMA AND ACHIEVA IN CONTRAST WITH SUCH STANDBYS AS ROADMASTER IMPALA CONTINENTAL AND MUSTANG THERE ARE MORE THAN 400 VEHICLE NAMEPLATES IN THE US SAYS FRANK DELANO CHAIRMAN OF DELANO GOLDMAN & YOUNG A NEW YORK CONSULTING COMPY THAT SPECIALIZES IN SELECTING NEW NAMES FOR CORPORATE CLIENTS IT'S VERY DIFFICULT TO COME UP WITH A NAME THAT IS LEGALLY AVAILABLE SAYS MR DELANO YOU HAVE TO GO TO THE OUTER PARAMETERS THAT'S JUST WHAT SOME AUTO MAKERS ARE DOING FOR THE NEW MODEL YEAR TAKE THE NEON A NEW SMALL CAR DUE OUT JAN 1 THE NAME WAS COOKED UP BY THE CHRYSLER DESIGN TEAM THAT CREATED THE CONCEPT VEHICLE TWO YEARS AGO THE PROBLEM MAKING SURE NO ONE ELSE HAD USED IT A SEARCH BY CHRYSLER'S PATENT LAWYERS DISCLOSED THAT NEON WAS INDEED AVAILABLE IT'S YOUNG AND YOUTHFUL AND VIBRANT DECLARES A SPOKESWOMAN MAZDA MOTOR SNATCHED MILLENIA FOR A NEW LUXURY VEHICLE DUE OUT NEXT YEAR WHILE GM'S OLDSMOBILE WAS STILL THINKING ABOUT IT OLDS HAD WHITTLED ITS SEARCH FROM 500 NAMES TO TWO MILLENIA AND AURORA THE MILLENIA NAME TESTED EXTREMELY WELL SAYS AN OLDS SPOKESMAN BUT MAZDA HAD ALREADY STAKED ITS LEGAL CLAIM AND THE NEW UPSCALE OLDS WILL ROLL OUT NEXT SPRING UNDER THE AURORA BADGE NAMES THAT WORK OVERSEAS DON'T NECESSARILY CATCH ON IN THE US FORD'S NEW SMALL WORLD CAR IS CALLED MONDEO IN EUROPE WHERE THE NAME SOUNDS LIKE THE WORD FOR WORLD IN SEVERAL LANGUAGES BUT IT JUST DOESN'T CLICK WITH YANKS SO FORD WILL CALL THE US VERSIONS THE FORD CONTOUR AND MERCURY MYSTIQUE HONDA FRETS THAT THE AVERAGE AGE OF ACCORD BUYERS IS UP TO NEARLY 45 YEARS FROM 35 TO 40 IN THE EARLY 1980S IT HOPES THE NEW ACCORD WILL REVERSE THAT CADILLAC AND LINCOLNMERCURY TOO WANT THEIR NEWER MODELS TO LURE YOUNGER BUYERS THAN THESE LUXURY DIVISIONS USUALLY DO AFTER ALL THAT'S WHERE THE FUTURE IS THEY'VE HAD SOME SUCCESS CADILLAC SAYS THAT OVER THE PAST TWO YEARS THE AVERAGE AGE OF A SEVILLE BUYER HAS FALLEN BY SEVEN YEARS TO 58 AND LINCOLNMERCURY SAYS THE AVERAGE BUYER OF THE MARK VIII IS 52 VS 58 FOR THE MARK VII BUT BUICK IS HAPPY WITH AN AVERAGE BUYER AGE OF 60 ONE WAY TO LOOK AT IT SAYS A BUICK EXECUTIVE IS THAT THE MARKET IS MOVING OUR WAY AS THE BABY BOOMERS AGE 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 9310120085 931012 ABREAST OF THE MARKET INDUSTRIAL AVERAGE ADVANCES 867 AS INVESTORS BUY CONSUMER SHARES BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES CLIMBED AS INVESTORS EMBRACED SHARES OF CONSUMER COMPANIES AND DUMPED STOCKS OF ECONOMICALLY SENSITIVE COMPANIES THE DOW JONES INDUSTRIAL AVERAGE GAINED 867 POINTS TO 359341 IN LIGHT TRADING MANY INVESTORS WERE AWAY FOR THE COLUMBUS DAY HOLIDAY STANDARD & POOR'S 500STOCK INDEX ADDED 057 TO 46088 AND THE NASDAQ COMPOSITE INDEX SURGED 338 TO 76765 HITTING A RECORD EVEN AS SEMICONDUCTOR SUPERSTAR INTEL PLUNGED 4 3/4 AFTER REPORTING EARNINGS THAT WERE A PENNY OFF THE MARK ADVANCING ISSUES OUTNUMBERED DECLINERS 1029 TO 943 VOLUME ON THE BIG BOARD DROPPED TO 182633510 SHARES FROM 243251280 SHARES FRIDAY YESTERDAY WAS A DAY WHEN INVESTORS APPEARED TO BE LOOKING FOR THE SAFETY OF STABLE EARNINGS SAID THOMAS MCMANUS A MARKET ANALYST AT MORGAN STANLEY HE SAID INVESTORS FLOCKED TO CONSUMER STOCKS AMID CONCERNS ABOUT THIRDQUARTER PROFITS AND FEARS OF CONTINUED SLUGGISHNESS IN THE ECONOMY AFTER THE SEPTEMBER EMPLOYMENT REPORT FRIDAY INDEED WHILE MORGAN STANLEY'S INDEX OF SOCALLED CYCLICAL STOCKS FELL 160 POINTS TO 28179 ITS BAROMETER OF CONSUMER STOCKS ROSE 104 TO 18956 PHILIP MORRIS ADDED 7/8 TO 49 1/8 COCACOLA 3/4 TO 42 GENERAL MILLS 3/4 TO 61 KIMBERLYCLARK 5/8 TO 50 3/8 AND COLGATEPALMOLIVE 5/8 TO 55 3/8 WAYNE NORDBERG A PARTNER AT LORD ABBETT SAID INVESTORS ARE DISCOVERING THAT CYCLICAL COMPANIES WILL HAVE A HARD TIME DELIVERING ON EARNINGS PROMISES THUS THE ONLY ENGINE FOR HIGHER STOCK PRICES IS LOWER INTEREST RATES THE VERY OPTIMISTIC EARNINGS ESTIMATES AREN'T COMING THROUGH AND THE DISAPPOINTMENTS WE ARE SEEING LIKE CORNING LAST WEEK AND INTEL THIS WEEK INDICATE THAT THERE IS REAL NERVOUSNESS OUT THERE AT THE SLIGHTEST SHORTFALL IN EARNINGS MR NORDBERG SAID INTEL PLUNGED TO 65 1/2 ON FIVE TIMES THE AVERAGE DAILY VOLUME ON NASDAQ THE SEMICONDUCTOR COMPANY REPORTED THIRDQUARTER PROFIT SOARED TO 133 A SHARE FROM 56 CENTS A SHARE A YEAR AGO THE EARNINGS WHICH FELL SHORT OF ANALYSTS' ESTIMATES BY ONE CENT SPARKED A SELLOFF IN SEMICONDUCTOR STOCKS TEXAS INSTRUMENTS TUMBLED 3 3/4 TO 64 3/4 NATIONAL SEMICONDUCTOR 1 1/8 TO 18 ADVANCED MICRO DEVICES 3/8 TO 20 1/8 AND MOTOROLA 2 TO 98 1/2 AFTER THE MARKET CLOSED MOTOROLA REPORTED THIRDQUARTER PROFIT CLIMBED TO 92 CENTS A SHARE FROM 47 CENTS IN THE YEARAGO PERIOD SMARTLY SURPASSING ANALYSTS' ESTIMATES ELI LILLY JUMPED 3 1/2 TO 53 5/8 THE DRUG COMPANY SAID IT EXPECTS PROFITS TO RANGE FROM 98 CENTS TO 1 A SHARE IN THE THIRD QUARTER REVERSING A YEARAGO LOSS IN ADDITION ELI LILLY SAID IT WILL BOOK SPECIAL PRETAX CHARGES IN THE FOURTH QUARTER PARTLY TO COVER AN EARLY RETIREMENT PROGRAM ANNOUNCED YESTERDAY THAT WILL REDUCE ITS WORK FORCE AS MUCH AS 10 BY MID1994 ALUMINUM CO OF AMERICA SLUMPED 7/8 TO 66 7/8 MERRILL LYNCH ANALYST DANIEL ROLING CUT HIS SHORTTERM RATING ON THE COMPANY'S STOCK TO NEUTRAL FROM ABOVE AVERAGE AFTER THE FIRM REPORTED DISAPPOINTING THIRDQUARTER RESULTS FRIDAY RAYMOND JAMES FINANCIAL ROCKETED 1 3/4 TO 30 1/8 A 52WEEK HIGH THE BROKERAGE CONCERN'S STOCK IS UP ON EXPECTATIONS FISCAL 1993 EARNINGS WILL BE STRONG OTHER BROKERAGE STOCKS ALSO EDGED HIGHER MERRILL LYNCH ADDED 5/8 TO 98 3/4 PAINEWEBBER GROUP 3/8 TO 32 3/4 AND QUICK & REILLY 1 TO 37 7/8 PARAMOUNT COMMUNICATIONS LOST 3/8 TO 76 5/8 THE COMPANY SAID IT AUTHORIZED MANAGEMENT TO ENTER INTO INFORMATIONAL DISCUSSIONS WITH QVC NETWORK IN ORDER TO EVALUATE VARIOUS ASPECTS OF QVC'S MERGER PROPOSAL PARAMOUNT SAID THAT AT THE SAME TIME IT IS PROCEEDING WITH ITS MERGER WITH VIACOM QVC SLIPPED 1/4 TO 56 1/4 ON NASDAQ AND VIACOM ROSE 1/2 TO 56 5/8 ON THE AMERICAN STOCK EXCHANGE BELL ATLANTIC SLUMPED 2 TO 59 3/8 THE TELEPHONE COMPANY SAID IT WILL INVEST AS MUCH AS 104 BILLION TO BUY A 42 ECONOMIC INTEREST IN GRUPO IUSACELL SA A MEXICAN TELECOMMUNICATIONS CONCERN FOR THE FIRST SEVERAL YEARS THE TRANSACTION IS EXPECTED TO HAVE A SLIGHTLY NEGATIVE EFFECT ON BELL ATLANTIC'S PERSHARE EARNINGS THE COMPANY SAID SPIEGEL RALLIED 3 1/4 TO 42 1/4 ON NASDAQ THE CATALOG RETAILER DECLARED A 2FOR1 STOCK SPLIT AND RAISED ITS QUARTERLY DIVIDEND TO FIVE CENTS A SHARE FROM THE SPLITADJUSTED 35 CENTS IT HAD BEEN PAYING 9310120084 931012 BUSINESS BRIEF NASD DELISTS STOCK OF CABLETV CONCERN CITING RULE VIOLATIONS DALLAS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS SAID IT WILL DELIST THE STOCK OF FUTURE COMMUNICATIONS INC THURSDAY NASD SAID THAT THE CABLETELEVISION CONCERN VIOLATED THE ASSOCIATION'S CORPORATE GOVERNANCE RULES PROVIDED ERRONEOUS AND MISLEADING INFORMATION FAILED TO DISCLOSE MATERIAL INFORMATION AND FAILED TO PROVIDE INFORMATION THAT WOULD ADEQUATELY EXPLAIN THE COMPANY'S FINANCIAL POSITION A SPOKESMAN FOR THE ASSOCIATION WOULDN'T COMMENT FURTHER AND COMPANY OFFICIALS DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT THE NASD ACTION WAS THE LATEST IN A SERIES OF RECENT BLOWS TO FUTURE COMMUNICATIONS LAST WEEK THE SECURITIES AND EXCHANGE COMMISSION FILED SUIT IN FEDERAL COURT IN DALLAS AGAINST THE COMPANY AND ITS CHAIRMAN SERGIO BOSCO ALLEGING A SCHEME TO FRAUDULENTLY INFLATE THE COMPANY'S STOCK THROUGH FALSE ANISLEADING STATEMENTS AND THE FAILURE TO DISCLOSE POTENTIALLY DAMAGING INFORMATION ALSO THE COMPANY'S AUDITING FIRM RESIGNED RECENTLY STATING THAT THE COMPANY DIDN'T ALLOW THE FIRM TO PERFORM QUARTERLY REVIEWS OF MATERIAL TRANSACTIONS AND DOCUMENTS THE DELISTING MEANS FUTURE SHARES WON'T BE ALLOWED TO TRADE ON NASDAQ THE OVERTHECOUNTER BULLETIN BOARD OR IN THE PINK SHEETS THE SPOKESMAN SAID ONCE THE STOCK IS DELISTED AND A CURRENT TRADING HALT IS LIFTED THURSDAY SHAREHOLDERS WILL BE ALLOWED TO TRADE THE STOCK ELSEWHERE IN THE OVERTHECOUNTER MARKET IF THEIR BROKERS ARE ABLE TO FIND BUYERS FUTURE'S STOCK HAD CLIMBED FROM 650 A SHARE IN JUNE TO A HIGH OF 27375 A SHARE ON AUG 31 WHEN THE NASD HALTED TRADING 9310120083 931012 INTERNATIONAL HONG KONG PROBING IPOS BACKED BY UNIT OF STANDARD CHARTERED HONG KONG SECURITIES REGULATORS IN HONG KONG ARE INVESTIGATING DEALINGS IN CERTAIN STOCKS UNDERWRITTEN AND SPONSORED BY STANDARD CHARTERED ASIA THE SECOND BATCH OF SHARE OFFERINGS IN THIS COLONY TO COME UNDER THE SCRUTINY OF THE SECURITIES AND FUTURES COMMISSION IN RECENT MONTHS STANDARD CHARTERED ASIA A HONG KONG SUBSIDIARY OF STANDARD CHARTERED PLC OF LONDON IS AWARE THAT THE SFC IS CONDUCTING A REVIEW OF MARKET TRADING AFTER THE LISTING OF SOME SHARES BETWEEN AUGUST 1992 AND JANUARY 1993 SAID DAVID STILEMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE HONG KONG MERCHANT BANK HE ADDED IT IS UNDERSTOOD THAT THE IPOS INITIAL PUBLIC OFFERINGS BEING REVIEWED INCLUDE A NUMBER SPONSORED BY STANDARD CHARTERED ASIA SOME OF WHICH INVOLVE STANDARD CHARTERED ASIA AS SUBUNDERWRITER THE SFC DECLINED TO COMMENT ON DETAILS OF THE INVESTIGATION MR STILEMAN SAID THE FIRM IS NOT AWARE OF ANY BREACH OF SECURITIES REGULATIONS WITHIN THE STANDARD CHARTERED GROUP AND WOULD FULLY COOPERATE WITH ANY SFC INVESTIGATION IF WE FIND ANY BREACH WE WILL TAKE APPROPRIATE ACTION IMMEDIATELY HE SAID SAMMY TAM FINANCIAL CONTROLLER OF NGAI LICK INDUSTRIAL HOLDINGS LTD AN AUDIOEQUIPMENT MAKER WHOSE SHARES ARE AMONG THOSE COVERED BY THE INVESTIGATION SAID THE INQUIRY IS APPARENTLY ONLY TOWARD STANDARD CHARTERED AND NOT TOWARD OUR COMPANY THE INVESTIGATION IS FURTHER EVIDENCE OF HONG KONG REGULATORS' EAGERNESS TO BOOST THE COLONY'S IMAGE AMONG FOREIGN INVESTORS IN SEPTEMBER THE SFC ISSUED A PUBLIC REPRIMAND OF PEREGRINE BROKERAGE LTD FOR ALLEGEDLY BUYING BACK SHARES IT HAD SOLD THROUGH OTHER BROKERS IN A MANNER WHICH MAY HAVE MISLED THE MARKET AS TO THE REAL DEMAND FOR THE STOCKS 9310120082 931012 LEGAL BEAT FEE CAP MAY NOT DETER MALPRACTICE SUITS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL DONNA SHALALA THE US SECRETARY OF HEALTH AND HUMAN SERVICES RECENTLY BRAGGED TO A DOCTORS' GROUP THAT THE CLINTON HEALTH PLAN WOULD LIMIT LAWYERS' SHARE IN MEDICALMALPRACTICE CASES TO ONETHIRD OF DAMAGE AWARDS HER AUDIENCE LAUGHED AFTER ALL ONETHIRD HAS LONG BEEN THE GOING RATE MANY IN THE AUDIENCE THAT DAY AT AN AMERICAN MEDICAL ASSOCIATION CONFERENCE IN WASHINGTON ARE PUSHING FOR A LIMIT AS LOW AS 15 THEY SAY REDUCED FEES WILL DISCOURAGE LAWYERS FROM SUING DOCTORS SO OFTEN BUT THE DOCTORS MAY NOT GET THE LAST LAUGH EVEN IF THEY WIN THEIR BATTLE WITH THE POWERFUL PLAINTIFFS' BAR AND FORCE THE PROPOSED FEE CAP DOWNWARD THAT'S BECAUSE DATA FROM STATES THAT HAVE ALREADY SET FEE LIMITS SUGGEST THAT THE REDUCED FEES SIMPLY DON'T WORK TO KEEP MALPRACTICE CASES OUT OF COURT SINCE 1975 MORE THAN A DOZEN STATES HAVE ENACTED VARIOUS LIMITATIONS ON LAWYERS' CONTINGENCY FEES IN MEDICALMALPRACTICE CASES SEVERAL STATES INCLUDING CALIFORNIA AND NEW YORK USE A SLIDING SCALE IN WHICH LAWYERS GET A SMALLER SHARE OF THE TAKE AS THE AMOUNT OF THE AWARD INCREASES FOR EXAMPLE A CALIFORNIA PLAINTIFFS' LAWYER CAN KEEP UP TO 40 OF A 50000 AWARD BUT ONLY 15 OF ANY MONEY AWARDED ABOVE 600000 BY CONTRAST INDIANA WHICH HAS THE STRICTEST LIMIT IMPOSES AN ACROSSTHEBOARD CAP OF 15 IN A RAND CORPSPONSORED STUDY OF JURISDICTIONS WITH AND WITHOUT SUCH LIMITS BETWEEN 1975 AND 1984 WHARTON SCHOOL HEALTH ECONOMIST PATRICIA DANZON FOUND THAT EVEN THE STRICTEST RESTRAINTS ON FEES DON'T AFFECT THE NUMBER OF MALPRACTICE SUITS THAT ARE FILED THE FEES THE LAWYERS RECEIVED APPEARED TO BE HIGH ENOUGH TO KEEP THEM IN BUSINESS AND TO KEEP THEM FILING THE SAME SORTS OF LAWSUITS AS THEY HAD IN THE PAST HAVING REACHED A SIMILAR CONCLUSION ON ITS OWN THE OREGON LEGISLATURE IN 1987 REPEALED A ONETHIRD CAP LIKE THE ONE THE PRESIDENT HAS RECOMMENDED IT BECAME APPARENT THAT IT DIDN'T MAKE ANY DIFFERENCE EITHER IN CURBING LAWSUITS OR CONSTRAINING FEES WHICH RARELY SURPASSED ONETHIRD ANYWAY SAYS CHARLES BURT A SALEM ORE PLAINTIFFS' LAWYER ACCORDING TO THE RAND STUDY OTHER LEGISLATION SUCH AS SHORTER TIME LIMITS ON THE FILING OF SUITS AND CEILINGS ON DAMAGE AWARDS FOR PAIN AND SUFFERING DID PROVE EFFECTIVE IN REDUCING THE NUMBER AND SIZE OF AWARDS SUCH PROPOSALS WHILE QUITE POPULAR ON THE STATE LEVEL AND GENERALLY SUPPORTED BY THE BUSH ADMINISTRATION ARE NOT PART OF THE CLINTON HEALTH PLAN THE RAND CONCLUSIONS WHILE KNOWN TO SOME DOCTORS' AND LAWYERS' GROUPS HAVEN'T DETERRED EITHER SIDE FROM MAINTAINING THAT CEILINGS CAN IN FACT DETER SUITS FROM BEING FILED FOR DOCTORS REDUCING FRIVOLOUS SUITS IS THE PRIME GOAL OF THE FEE LIMITS AND IN OPPOSING CAPS LAWYERS ARGUE THAT FEE LIMITS MAY KEEP LAWYERS FROM ACCEPTING LEGITIMATE CASES YOU MAY VERY WELL FIND A LAWYER WHO WILL TAKE THE CASE SAYS LES WEISBROD A DALLAS TRIAL LAWYER BUT THE LAWYER YOU'RE GOING TO FIND IS LIKELY TO HAVE NEVER TRIED A MEDICALMALPRACTICE CASE IN FRONT OF A JURY AT THE VERY LEAST BOTH SIDES AGREE CAPS WOULD ENSURE THAT PATIENTS RATHER THAN THEIR LAWYERS TAKE THE BIGGER SHARE OF ANY AWARD EVEN A 33 NATIONWIDE CAP WOULD LOWER THE FEES CURRENTLY CHARGED IN A FEW SITUATIONS SOME PLAINTIFFS' LAWYERS NOW CHARGE 40 FOR CASES THAT DON'T SETTLE BEFORE TRIAL AND UP TO 50 FOR CASES THAT ARE APPEALED ALSO IN TEXAS AND A FEW OTHER STATES WITH UNUSUALLY BUSY PERSONALINJURY DOCKETS FEES HAVE BEEN CLIMBING TOWARD 50 FOR THAT REASON CONSUMER ADVOCATES GENERALLY SUPPORT THE CLINTON PROPOSAL THEIR SUPPORT HAS WEAKENED THE USUAL ALLIANCE BETWEEN CONSUMER GROUPS AND PLAINTIFFS' LAWYERS ON ISSUES OF LIABILITY REFORM AND MAY MAKE IT EASIER FOR DOCTORS AND INSURERS TO KEEP SOME FEE LIMITS IN THE FINAL PLAN PLAINTIFFS' LAWYERS FOR THEIR PART COMPLAIN THAT ADVOCATES OF FEE LIMITS DON'T UNDERSTAND THE HIGH COST OF LITIGATING SOME MALPRACTICE CASES MR WEISBROD FOR INSTANCE SAYS HE WON'T END UP MAKING VERY MUCH MONEY ON A 17 MILLION JURY VERDICT IN A CASE HE WON IN APRIL EVEN THOUGH HE IS CHARGING A 50 FEE THE JUDGMENT CAME IN THE CASE OF JACKIE CLEMONS A TULSA OKLA WOMAN WHO WENT INTO A HOSPITAL FOR A TONSILLECTOMY AND DIED AFTER NURSES FAILED TO MONITOR HER CONDITION PROPERLY MR WEISBROD CONCEDES THAT 50 OF 17 MILLION SOUNDS ENORMOUS BUT HE SAYS THE MONEY MUST COMPENSATE SEVEN DIFFERENT LAWYERS WHO WORKED ON THE CASE OVER A PERIOD OF FOUR YEARS IN ADDITION MR WEISBROD ALREADY HAS DOLED OUT MORE THAN 191000 IN EXPENSES ON THE CASE IF THE JUDGMENT HOLDS UP ON APPEAL MR WEISBROD SAYS HIS FIRM WILL RECEIVE A TOTAL OF 375000 AFTER DEDUCTING ITS EXPENSES AND COMPENSATING A TULSA LAW FIRM THAT ALSO WORKED ON THE CASE IF I'M GOING TO RISK THIS KIND OF MONEY THIS JUSTIFIES CHARGING A HIGHER CONTINGENT FEE BECAUSE THERE AREN'T THAT MANY LAWYERS THAT HAVE THAT KIND OF MONEY AND ARE WILLING TO RISK IT IN THESE KINDS OF CASES HE SAYS SOME LEGAL SPECIALISTS ARGUE THOUGH THAT THE REAL PROBLEM WITH CONTINGENCY FEES IS NOT THE PERCENTAGE RATE BUT THE POTENTIAL FOR UNDESERVED INCOME FOR LAWYERS IN CASES IN WHICH THEY INCUR NEARLY NO RISK AND MINIMAL EXPENSE FOR EXAMPLE MANY SUITS SETTLE AFTER THE LAWYER HAS DONE ONLY A SMALL AMOUNT OF WORK IN SOME OF THOSE CASES THE LAWYER'S CONTINGENCY FEE EFFECTIVELY GIVES HIM AN HOURLY RATE OF MORE THAN 1000 SAYS LESTER BRICKMAN AN EXPERT ON LAWYERS' FEES AT CARDOZO LAW SCHOOL IN NEW YORK TRYING TO REIN IN EXTRAVAGANT FEES SOLELY THROUGH A ONETHIRD LIMIT IS SOMETHING LIKE THE DIET DOCTOR WHO LIMITS THE OBESE PATIENT TO 300 POUNDS SAYS MR BRICKMAN IT ALLOWS A CONSIDERABLE AMOUNT OF EXCESS FAT APRIL 1990 THE JURY REACHED A JURY VERDICT THREE YEARS LATER IN APRIL 1993 INTEREST CASE FOLLOWING A YEARLONG SURVEY BRITAIN'S JUDICIARY HAS DECIDED TO RETAIN THE TRADITIONAL HORSEHAIR WIGS WORN BY JUDGES AND BARRISTERS ABOUT 67 OF THOSE SURVEYED BY THE LORD CHANCELLOR'S DEPARTMENT SAID THEY FAVORED RETAINING DAILY COURT DRESS IN ITS PRESENT FORM INCLUDING THE WIGS AND VARIOUS COATS GOWNS AND ROBES ONLY 15 WANTED IT ABOLISHED AND THE REST WANTED SOME SIMPLIFICATION ABOUT 14 CALLED FOR ABOLISHING THE WIG SOME 520 RESPONSES WERE RECEIVED FROM LAWYERS WITNESSES AND THE PUBLIC THE MAJORITY THE DEPARTMENT SAID FELT THAT FORMAL DRESS HAD A SIGNIFICANT ROLE TO PLAY IN MAINTAINING RESPECT FOR THE AUTHORITY AND STATUS OF THE COURT TEAMING UP JONES DAY REAVIS & POGUE IS AFFILIATING WITH WHITE HILL SIMS & WIGGINS A DALLAS LAW FIRM RECENTLY FORMED BY FOUR BLACK ATTORNEYS THE MINORITY LAW FIRM WILL OPERATE IN THE SAME OFFICE BUILDING AS JONES DAY IN DALLAS H RON WHITE MANAGING PARTNER OF WHITE HILL SIMS & WIGGINS SAID HAVING ACCESS TO THE RESOURCES OF JONES DAY WHICH HAS 1082 LAWYERS WORLDWIDE WILL ENABLE THE SMALL FIRM TO HANDLE LARGER PROJECTS RICHARD KNEIPPER A JONES DAY PARTNER IN DALLAS SAID THE CLEVELANDBASED LAW FIRM EXPECTS THE ARRANGEMENT TO INCREASE ITS BUSINESS WITH MINORITYOWNED CLIENTS 9310120081 931012 BUSINESS BRIEF KIMBERLYCLARK CORP COMPANY TO SELL ITS UNIT TO IVEX PACKAGING CORP KIMBERLYCLARK CORP SAYING IT WILL CONCENTRATE ON CORE BUSINESSES WILL SELL ITS BROWNBRIDGE ADHESIVECOATINGS GROUP TO IVEX PACKAGING CORP TERMS WEREN'T DISCLOSED BUT KIMBERLYCLARK IN DALLAS SAID THE SALE WILL HAVE NO MATERIAL EFFECT ON EARNINGS BROWNBRIDGE OF TROY OHIO MANUFACTURES ADHESIVECOATED STOCKS FOR LABELS AND RELATED APPLICATIONS AND WILL HAVE 1993 SALES ESTIMATED AT 90 MILLION IT HAS 380 EMPLOYEES CLOSELY HELD IVEX OF LINCOLNSHIRE ILL MANUFACTURES PLASTIC AND PAPER PACKAGING PRODUCTS FOR A VARIETY OF SPECIALTY MARKETS IT HAS ANNUAL SALES OF ABOUT 400 MILLION A SPOKESMAN SAID THE TRANSACTION WHICH IS SUBJECT TO GOVERNMENT AND REGULATORY APPROVALS IS EXPECTED TO CLOSE BEFORE THE END OF THE YEAR KIMBERLYCLARK MAKES CONSUMER PRODUCTS INCLUDING HUGGIES DIAPERS AS WELL AS PAPER 9310120080 931012 WHO'S NEWS WARRANTECH CORP WARRANTECH CORP STAMFORD CONN THIS SERVICECONTRACTS PROVIDER ELECTED MICHAEL J SALPETER 41 YEARS OLD A DIRECTOR INCREASING THE BOARD TO 10 DR SALPETER IS A SYRACUSE NY DENTIST 9310120079 931012 SEC CHIEF TO SEEK MORE DISCLOSURE IN MUNI MARKET BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT PLANS TO STEP UP HIS HANDSON CAMPAIGN TO FIX PERCEIVED PROBLEMS IN THE MUNICIPAL BOND MARKET MR LEVITT WHO HAS SCHEDULED AN OCT 18 SESSION WITH TOP WALL STREET EXECUTIVES IN AN APPARENT BID TO SEVER THE LINK BETWEEN POLITICAL PAYMENTS AND MUNI BUSINESS TOMORROW WILL PURSUE THE ELUSIVE GOAL OF INCREASING DISCLOSURE IN THE SECONDARY MARKET FOR MUNICIPAL SECURITIES ONE LEADING PROBLEM NOW ACCORDING TO REGULATORS AND MANY MARKET PARTICIPANTS IS THAT INVESTORS OFTEN ARE IN THE DARK ON MATERIAL FACTS RELEVANT TO THE VALUE OF BONDS OUTSTANDING IN THE SECONDARY MARKET MR LEVITT SAID RECENTLY THAT INVESTORS CANNOT BE TRULY CONFIDENT IN THEIR EVALUATIONS OF BONDS WITHOUT UPDATED DISCLOSURES THE SEC CHAIRMAN WHO HAS TAKEN MUCH MORE OF AN INTEREST IN THE MUNI MARKET THAN OTHER RECENT CHAIRMEN WILL MEET TOMORROW IN NEW YORK WITH REPRESENTATIVES OF VARIOUS SEGMENTS OF THE MUNI MARKET ISSUERS UNDERWRITERS LAWYERS AND OTHERS TO PROD THEM TO WORK TOWARD IMPROVING A SECONDARY MARKET DISCLOSURE REGIME HE CALLS ABYSMAL AND TO SOLICIT THEIR VIEWS ON A POSSIBLE DISCLOSURE INITIATIVE THE MEETING ORGANIZED FOR THE SEC BY THE MUNICIPAL SECURITIES RULEMAKING BOARD IS BEING HELD IN CONJUNCTION WITH THE SEC'S PLAN TO PROVIDE GUIDANCE ON THE KIND OF DISCLOSURES REQUIRED OF MUNI ISSUERS UNDER THE ANTIFRAUD PROVISIONS OF THE FEDERAL SECURITIES LAWS THE SEC HAS ASKED THAT WE WORK WITH THEM TO GET TOGETHER ALL THE RELEVANT PARTIES TO DRAFT A LIST OF DISCLOSURE ITEMS SAID CHRISTOPHER TAYLOR MSRB EXECUTIVE DIRECTOR WHO CALLED WEDNESDAY'S MEETING THE START OF THE GAME WHILE THE STATES LOCALITIES AND PUBLIC AUTHORITIES THAT ISSUE MUNICIPAL BONDS ARE GENERALLY EXEMPT FROM THE FEDERAL SECURITIES LAWS THEY ARE SUBJECT TO THE ANTIFRAUD PROVISIONS THE PLAN IS FOR THE SEC TO PREPARE AN INTERPRETIVE RELEASE SPELLING OUT ISSUERS' DUTIES UNDER THE ANTIFRAUD PROVISIONS THE AGENCY'S DIVISION OF CORPORATE FINANCE IS TAKING THE LEAD ON THE PROJECT WHICH OFFICIALS HOPE CAN BE WRAPPED UP BY EARLY NEXT YEAR CHAIRMAN EDWARD MARKEY D MASS OF THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE SAID LAST WEEK THAT VOLUNTARY EFFORTS TO IMPROVE SECONDARY MARKET DISCLOSURE HAVE FALLEN SHORT AND THAT FEDERAL LEGISLATION MAY WELL BE NEEDED 9310120078 931012 INTERNATIONAL CZECHS PLAY A TOUGH GAME OF MONOPOLY PRIVATIZATION FAILS TO TRANSLATE TO COMPETITION BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL PRAGUE CZECH PRIME MINISTER VACLAV KLAUS LOVES TO LECTURE THE WEST ABOUT HOW HIS NATION OF 11 MILLION HAS EMBRACED FREEMARKET PRINCIPLES BUT IN FACT WHEN IT COMES TO FOREIGN INVESTMENT THE CZECHS SEEM TO HAVE THROWN THE IDEA OF COMPETITION OUT THE WINDOW MORE THAN A YEAR AFTER SELLING ITS STATE TOBACCO COMPANY TABAK SA TO PHILIP MORRIS COS THE CZECH PARLIAMENT HAS YET TO FULFILL ITS PROMISE TO ALLOW OTHERS TO MAKE CIGARETTES IN THE COUNTRY NOT SURPRISINGLY PHILIP MORRIS HAS USED ITS HEAD START TO FURTHER ESTABLISH ITS POSITION EXPANDING DISTRIBUTION AND RAISING ITS MARKET SHARE TO MORE THAN 62 FROM ABOUT 56 IN THE COMBINED CZECH AND SLOVAK MARKETS AND IT HOLDS AN EVEN MORE COMMANDING 75 SHARE IN THE CZECH REPUBLIC ALONE WE ARE VERY HAPPY SAYS A PHILIP MORRIS SPOKESMAN IT'S WORKING VERY WELL LESS HAPPY ARE COMPETITORS WE'VE LOST INTEREST IN THE MARKET SAYS A SPOKESMAN FOR LONDONBASED BA T INDUSTRIES PLC WHICH IS IMPORTING SMALL QUANTITIES OF HB AND LUCKY STRIKE CIGARETTES THE CZECH REPUBLIC MAY BE TRANSFORMING INTO A MARKET ECONOMY HE GRUMBLES BUT PRIVATIZING A VIRTUAL MONOPOLY IS AN ODD WAY TO GO ABOUT IT EXPERTS ADVISING WESTERN COMPANIES ARE POINTING OUT WHAT FEW SO FAR HAVE GRASPED BECAUSE OF COMMUNIST CENTRAL PLANNING MANY COMPANIES FOR SALE IN THE EAST ARE NEAR MONOPOLIES BUYING ONE CAN GIVE AN UNPRECEDENTED FOOTHOLD THAT COMPETITORS CAN'T REPLICATE FOR DECADES EVEN IF THE GOVERNMENT EVENTUALLY LETS IN RIVALS YOU BUILD A POSITION THAT WILL LAST FOR YEARS AND YEARS AND YEARS SAYS DAVID PITTWATSON OF STRATEGIC CONSULTANTS BRAXTON ASSOCIATES WHILE THE CZECHS MAY LIFT THEIR MONOPOLY LAW NEXT YEAR FOR EXAMPLE MANY SAY IT WILL TAKE YEARS FOR COMPETITORS TO CATCH UP TO PHILIP MORRIS WHEN VOLKSWAGEN AG BOUGHT 31 OF CZECH CAR MAKER SKODA AUTO AS IN 1991 THE GOVERNMENT GAVE VW TARIFF PROTECTION FOR FOUR YEARS SKODA HAS MADE FULL USE OF ITS PROTECTED MARKET NEARLY DOUBLING PRICES IN THE PAST THREE YEARS AND SPURRING ANGER AMONG THE POPULACE THAT MADE VW'S RECENT DECISION TO CANCEL 14 BILLION MARKS 863 MILLION OF PROMISED FINANCING FOR SKODA ALL THE MORE ACRIMONIOUS TARIFFS ON IMPORTED CARS FROM THE EUROPEAN COMMUNITY REMAIN AT 152 AND 19 FOR OTHER AUTOS RUSSIA TOO ACCOMMODATES INVESTOR DESIRES TO BUY PROTECTED MARKET POSITIONS IF YOU MERGED THE TOP FOUR COMPANIES IN ANY US INDUSTRY IT WOULD BE LESS MONOPOLIZED THAN RUSSIA CURRENTLY IS MR PITTWATSON THE CONSULTANT SAYS WHAT THAT MEANS FOR INVESTORS IS A COUPLE OF THINGS IF YOU WANT TO DO A DEAL THERE ARE A LIMITED NUMBER TO BE DONE AND YOU'D BETTER BE THERE TO DO IT NOW HARDLY ANY FOREIGN INVESTOR GOES TO THE EAST WITHOUT FIRST TRYING TO MAKE SURE HE'S PROTECTED SAYS HANS PETER LANKES AN ECONOMIST WITH THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT FORD MOTOR CO GOT AN EXEMPTION FROM AN 18 TARIFF IN HUNGARY FOR IMPORTATION OF ITS FORD TRANSIT PICKUP TRUCKS BECAUSE IT HAD ESTABLISHED A PARTS FACTORY IN HUNGARY ONLY AFTER AN UPROAR BY LEGISLATORS AND COMPETITORS WAS THE EXEMPTION EXTENDED TO OTHER TRUCKS JANOS GACS OF THE INTERNATIONAL INSTITUTE FOR APPLIED SYSTEMS ANALYSIS IN LAXENBURG AUSTRIA SAYS SUCH SITUATIONS ALSO EXIST IN POLAND BUT NOW HAVE CAUSED A BACKLASH IN HUNGARY WHERE HUNGARIANS ARE FAVORED IN CURRENT PRIVATIZATIONS SOME EXPERTS ON PRIVATIZATION DEFEND THE PRACTICE AS NECESSARY TO GIVE FORMER STATE MONOPOLIES TIME TO BECOME COMPETITIVE WITH WESTERN RIVALS EFFORTS TO MAINTAIN PROTECTION DON'T ALWAYS WORK OF COURSE ITALY'S ANSALDO SPA PART OF STATECONTROLLED ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE BOUGHT ITS 51 STAKE IN BUDAPEST'S GANZ ELECTRIC WORKS IN PART BECAUSE AT THE TIME GANZ HAD A MONOPOLY BUT ANSALDO THEN WAS FORCED TO HASTEN THE MONEYLOSING HUNGARIAN COMPANY'S RESTRUCTURING WHEN THE GOVERNMENT ABRUPTLY ENDED GANZ'S MONOPOLY THE CZECHS WHO ARE FARTHEST ALONG THE PRIVATIZATION ROAD HAVE NEVER MADE CREATING COMPETITION AN EXPLICIT OBJECTIVE PARTICULARLY IF THAT MEANT BREAKING UP A STATE COMPANY CONTENDS BRUCE BYBEE A US ADVISER TO THE CZECH PRIVATIZATION AGENCY INDEED HE SAYS KEEPING THE BUSINESS TOGETHER USUALLY MEANS GETTING A BETTER PRICE IT WAS ASSUMED THAT COMPETITION WOULD COME FROM LOCAL INVESTORS OR JOINT VENTURES WITH LOCALS HE SAYS IN THE COMPETITION TO BUY TABAK PHILIP MORRIS ALWAYS HAD AN EDGE TABAK HAD BEEN MAKING MARLBORO UNDER LICENSE SINCE 1986 GIVING PHILIP MORRIS A RELATIONSHIP WITH LOCAL MANAGEMENT THAT BAT RJ REYNOLDS TOBACCO INTERNATIONAL INC A UNIT OF RJR NABISCO HOLDINGS INC AND OTHERS COULDN'T REPLICATE WHILE RJR PUT A HIGHER VALUE ON THE COMPANY PHILIP MORRIS SENSED LOCAL CONCERNS ABOUT EMPLOYMENT AND THE BUSINESS'S VIABILITY PLEDGING TO BUILD BRANDS JOBS AND MAKE BIGGER INVESTMENTS IN ALL IT PROMISED OVER 400 MILLION IN PAYMENT AND EQUITY INFUSIONS THAT FIRST SECURE FOOTHOLD MATTERS FOR SOME BUSINESSES MORE THAN OTHERS THE SIGNIFICANCE OF GETTING IN FIRST DEPENDS ON HOW IMPORTANT BRANDS ARE AND THE PRICING OF THE LOCAL PRODUCT VS IMPORTS SAYS MR BYBEE BRANDS IN THE CIGARETTE BUSINESS FOR INSTANCE ARE PARTICULARLY IMPORTANT BECAUSE SMOKERS RARELY SWITCH IF YOU HAVE A MONOPOLY IN STEEL THERE'S NOT MUCH VALUE TO IT SAYS OLIVIER PERRAUDIN A DIRECTOR AT MERRILL LYNCH BUT EVERYTHING THAT'S BRANDED AND HAS ADDED VALUE IS DEFINITELY VALUABLE PHILIP MORRIS HAS POURED 140 MILLION INTO TABAK THE BRANDS IT ACQUIRED START PETRA SPARTA HAVE HAD THEIR PACKAGES REDESIGNED AND THE COMPANY HAS INTRODUCED LINE EXTENSIONS WITH LOWER TAR AND NICOTINE CONTENT PETRA IS STILL THE NO 1 BRAND MARLBORO IS BEING LOCALLY MANUFACTURED AND BOND AN INTERNATIONAL BRAND HAS BEEN LAUNCHED TABAK'S EMPLOYMENT AT 2200 IS UP FROM JUST UNDER 2000 WHEN THE NEW YORKBASED COMPANY PURCHASED ITS FIRST CHUNK OF SHARES IN JUNE 1992 BUT COMPETITORS ARE CRYING FOUL THE CZECH GOVERNMENT HAD PROMISED WHEN TABAK WAS SOLD THAT IT WOULD ABOLISH ITS 1950 MONOPOLY LAW ON TOBACCO AND SPIRITS ACCORDING TO THE TERMS OF TABAK'S SALE SET IN MARCH 1992 THE CZECH ECONOMIC COUNCIL OF THE CABINET SAID THE LAW WOULD BE NULLIFIED AND THE WINNER OF TABAK COULDN'T COUNT ON CONTINUED PROTECTION OTHER COMPANIES WOULD GET LICENSED TO MANUFACTURE LOCALLY THERE HAVE BEEN A LOT OF PROMISES BROKEN COMPLAINS RUPERT J WILSON GENERAL MANAGER OF EASTWARD EXPANSION OF ROTHMANS OF PALL MALL INTERNATIONAL LTD MY FEELING IS THERE HAVE BEEN A LOT OF DELAYING TACTICS BY PHILIP MORRIS TO ENSURE THEY HOLD ON TO THIS MONOPOLY JAN STEHLIK A VICE MINISTER AT THE AGRICULTURE MINISTRY SAYS HE DOESN'T WANT TO DETAIL THE CHECKERED HISTORY OF A PROPOSED LAW ABROGATING THE MONOPOLY ACT HE ARGUES THAT THE CZECHS HAVE LARGELY FULFILLED THEIR GOALS SIMPLY BY PRIVATIZING A FORMER STATE MONOPOLY WE HAVE OTHER THINGS ON OUR MINDS SAYS KAREL DYBA THE MINISTER OF ECONOMY BY WAY OF EXPLANATION AND WE DON'T THINK IT'S SUCH A PRESSING PROBLEM THE WHOLE PROBLEM IS AN ADMINISTRATIVE DELAY AT THE AGRICULTURE MINISTRY WHERE THE INITIAL DRAFT OF A NEW LAW WAS REJECTED IN MAY BY THE LEGISLATIVE COUNCIL OF THE CZECH CABINET STILL THE LAW HAS BEEN DELAYED BY PROPOSALS THAT HAVE BEEN IN PHILIP MORRIS'S INTEREST ALTHOUGH EXECUTIVES AT THE CIGARETTE GIANT SAID A YEAR AGO THEY FAVORED ABOLISHING THE MONOPOLY LAW THEY ALSO RECOGNIZED THAT THE SHEER COMPLEXITY OF THE PROCESS WOULD BUY TIME MEANWHILE BECAUSE OF 65 DUTIES ON IMPORTED CIGARETTES IT IS NEARLY IMPOSSIBLE FOR COMPANIES MANUFACTURING OUTSIDE THE REPUBLIC TO COMPETE MR STEHLIK SAYS HIS MINISTRY NOW IS PUSHING AHEAD ON A PROPOSED LAW ALLOWING COMPETITORS IN BUT UNDER ANY CIRCUMSTANCES IT WON'T GO INTO EFFECT BEFORE JAN 1 HE SAYS AFTER THAT COMPANIES SAY IT WILL TAKE A MINIMUM OF SIX MONTHS FOR LOCAL MANUFACTURE TO BE SET UP BY THEN PHILIP MORRIS WILL HAVE HAD THE LOCAL MANUFACTURING MARKET TO ITSELF FOR NEARLY TWO YEARS 9310120076 931012 BUSINESS BRIEF JASON INC ACQUISITION AGREEMENT IS SET TO BUY KOLLER INDUSTRIES INC JASON INC SAID IT AGREED TO ACQUIRE KOLLER INDUSTRIES INC A MILWAUKEEBASED MAKER OF PRECISION METALFORMED COMPONENTS FOR 55 MILLION JASON WHICH MAKES AUTOMOTIVE TRIM PRODUCTS INDUSTRY FINISHING PRODUCTS AND PRODUCTS FOR THE POWER GENERATION INDUSTRY SAID PRIVATELY HELD KOLLER WHOSE MAJORITY SHAREHOLDER IS CODE HENNESSY & SIMMONS LP OF CHICAGO WILL FORM THE PRECISION COMPONENTS SEGMENT OF JASON KOLLER WHICH HAS 350 EMPLOYEES SAID FINANCING FOR THE PURCHASE WILL BE PROVIDED THROUGH DEBT AND EQUITY THE TRANSACTION IS EXPECTED TO BE COMPLETED BY THE END OF THE YEAR 9310120075 931012 PARAMOUNT SETS SOME DISCUSSION ON QVC OFFER FIRM'S BOARD DOESN'T ALLOW FORMAL NEGOTIATIONS BIDDER MULLS INVESTORS BY LAURA LANDRO AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL PARAMOUNT COMMUNICATIONS INC DIRECTORS AUTHORIZED THE COMPANY TO BEGIN INFORMATIONAL DISCUSSIONS TO EVALUATE QVC NETWORK INC'S 95 BILLION TAKEOVER OFFER QVC MEANWHILE CONTINUED TO EXPLORE BRINGING POTENTIAL INVESTORS INCLUDING BELLSOUTH CORP INTO ITS BID FOR PARAMOUNT AS EXPECTED PARAMOUNT DIRECTORS DIDN'T GIVE THE GOAHEAD TO START FORMAL NEGOTIATIONS WITH QVC AND PARAMOUNT SAID IT IS PROCEEDING WITH ITS PLANNED MERGER WITH VIACOM INC QVC'S BID IS CURRENTLY VALUED AT 8023 A SHARE WHILE THE VIACOM OFFER FOR PARAMOUNT IS CURRENTLY VALUED AT ONLY 6224 A SHARE OR 74 BILLION QVC A HOMESHOPPING CABLETV COMPANY DECLINED TO COMMENT ON THE PARAMOUNT BOARD'S ACTION THOUGH PEOPLE CLOSE TO THE COMPANY SAID IT HADN'T EXPECTED ANYTHING MORE AT THIS TIME WE EXPECTED THEM TO PAY LIP SERVICE TO SHAREHOLDER'S INTERESTS SAID ONE PERSON CLOSE TO QVC ADDING I WOULDN'T WANT TO FACE THEIR LIABILITIES AS DIRECTORS IF THE QVC BID ISN'T ACTED ON MORE SERIOUSLY SOON PARAMOUNT DECLINED TO COMMENT ON SUCH AN ISSUE BUT COMPANY OFFICIALS SAID PARAMOUNT IS MERELY PROCEEDING AS IT IS BOUND TO UNDER THE TERMS OF ITS MERGER AGREEMENT WITH VIACOM VIACOM A CABLETV COMPANY COULD TAKE LEGAL ACTION AGAINST PARAMOUNT IF THE NEW YORK ENTERTAINMENT AND PUBLISHING GIANT BEGAN NEGOTIATIONS WITH QVC WHILE UNCERTAINTIES REMAIN ABOUT QVC'S FINANCING SINCE QVC CONTINUES TO TALK TO POTENTIAL INVESTORS IT COULD BE ARGUED THAT QVC'S FINAL FINANCING PACKAGE IS NOT IN PLACE EVEN THOUGH IT HAS BANK COMMITMENTS ALREADY MOREOVER IF PARAMOUNT IS SOLD TO A HIGHER BIDDER UNDER THE TERMS OF ITS AGREEMENT VIACOM HAS A LOCKUP ARRANGEMENT GIVING VIACOM A FEE OF 100 MILLION VIACOM ALSO HAS THE RIGHT TO ACQUIRE 24 MILLION NEWLY ISSUED PARAMOUNT SHARES OR ABOUT 20 FOR 6914 APIECE WHICH WOULD GIVE VIACOM AN ADDITIONAL INDICATED PROFIT OF MORE THAN 260 MILLION BASED ON QVC'S CURRENT OFFER SOME PARAMOUNT SHAREHOLDERS PARTICULARLY THOSE TAKEOVER STOCK SPECULATORS WHO ARE BETTING ON THE HIGHER QVC OFFER ACCUSED THE BOARD OF DRAGGING ITS FEET ON THE QVC OFFER PARAMOUNT SAID IN A STATEMENT THAT DIRECTORS AUTHORIZED MANAGEMENT TO EVALUATE ANY REGULATORY RESTRAINTS THE VALUE OF QVC STOCK AND THE CERTAINTY AND TIME FRAME OF THE TRANSACTION BEING CONSUMMATED YESTERDAY THE PARAMOUNT BOARD SENT REQUESTS FOR MORE INFORMATION ON THOSE MATTERS TO QVC'S ADVISERS GUY WYSERPRATTE A TAKEOVER STOCK TRADER WHOSE FIRM OWNS MORE THAN 100000 PARAMOUNT SHARES SAID HE HAD RECEIVED PHONE CALLS FROM OTHER TRADERS ASKING IF HE WOULD BE INTERESTED IN PUTTING PRESSURE ON THE BOARD TO CONSIDER THE QVC OFFER MORE ACTIVELY MR WYSERPRATTE LED A PROXY FIGHT LAST YEAR AGAINST THE MANAGEMENT OF VAN DORN CORP THAT RESULTED IN VAN DORN BEING SOLD TO A HOSTILE BIDDER ONCE THEY HAD THE FINANCING DELIVERED BY QVC I BELIEVE PARAMOUNT HAD A RESPONSIBILITY TO DECLARE THEMSELVES IN AN AUCTION MODE SAID MR WYSERPRATTE I CAN ASSURE YOU WE WILL ASSEMBLE A POSSE IF THEY CONTINUE TO FORESTALL PUTTING THEMSELVES UP FOR SALE OTHER TRADERS NOTING THAT THE PARAMOUNT ANNOUNCEMENT HIT THE NEWSWIRES LESS THAN ONE HOUR AFTER THE SCHEDULED START OF THE BOARD MEETING SAID THEY BELIEVED THE MEETING'S BREVITY INDICATED THE BOARD WAS FOLLOWING A COURSE ADVOCATED BY MARTIN DAVIS PARAMOUNT CHIEF EXECUTIVE OFFICER WITHOUT ANY SUBSTANTIVE DISSENT BUT SOME OF PARAMOUNT'S INSTITUTIONAL INVESTORS SAID THEY WEREN'T CONCERNED MARIO GABELLI WHOSE GABELLI FUNDS OWNS ABOUT 55 MILLION SHARES SAID HE THOUGHT THE PARAMOUNT BOARD HAD RAISED REASONABLE QUESTIONS HE PREDICTED THAT ONCE QVC HAS BEGUN TO ANSWER THE QUESTIONS VIACOM CHAIRMAN SUMNER REDSTONE WILL HAVE TO COME BACK WITH A HIGHER OFFER FOR PARAMOUNT POSSIBLY WITHIN THE NEXT TWO WEEKS MR GABELLI SPECULATED THAT MR REDSTONE MIGHT MAKE A TWOPART OFFER OF PERHAPS 85 A SHARE IN CASH FOR 50 MILLION SHARES OR 42 OF PARAMOUNT'S STOCK TO BE FOLLOWED BY A MERGER AND ACQUISITION OF THE REMAINING SHARES FOR STOCK AT SOME LATER DATE HE SAID THAT THE THREEWEEKOLD TAKEOVER BATTLE IS STILL ONLY HALF OVER THE SECOND HALF IS READY TO START AND SUMNER HAS TO MAKE THE KICKOFF VIACOM'S CURRENT OFFER INCLUDES ONLY 910 A SHARE IN CASH QVC'S BID INCLUDES 30 A SHARE IN CASH BARRING A COLLAPSE IN QVC'S STOCK MOST TRADERS ASSUME THAT VIACOM WILL HAVE TO RAISE ITS BID THOUGH NOT NECESSARILY AS HIGH AS QVC'S TO PRESERVE ITS MERGER AGREEMENT WITH PARAMOUNT VIACOM CLASS B STOCK ROSE 1 A SHARE TO 5275 ON THE AMERICAN STOCK EXCHANGE WHILE QVC STOCK FELL 25 CENTS A SHARE TO 5625 IN NATIONAL OVERTHECOUNTER TRADING IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PARAMOUNT SHARES FELL 375 CENTS TO 76625 REFLECTING THE SLOW PACE OF THE TAKEOVER BATTLE QVC MEANWHILE CONTINUED TO DISCUSS ACCEPTING INVESTMENTS OF ROUGHLY 500 MILLION EACH FROM REGIONAL BELL TELEPHONE COMPANIES INCLUDING BELLSOUTH AND FROM CABLE COMPANIES THAT INCLUDE COX ENTERPRISES INC COX AND BELLSOUTH OFFICIALS REFUSED TO COMMENT BUT BELLSOUTH OFFICIALS WERE SAID TO BE HAGGLING OVER WHETHER BELLSOUTH WOULD GET COMMON OR PREFERRED SHARES IN QVC IN EXCHANGE FOR ITS INVESTMENT SOME BELLSOUTH OFFICIALS BELIEVE COMMON SHARES CARRY TOO MUCH RISK SAID ONE PERSON CLOSE TO THE COMPANY QVC CHAIRMAN BARRY DILLER FOR HIS PART IS SAID BY ASSOCIATES TO BE CONTINUING TO WEIGH THE MERITS OF BRINGING IN ANY INVESTORS AT ALL HE IS ONLY INTERESTED IN BRINGING INVESTORS INTO QVC IF THE BID WITH PARAMOUNT SUCCEEDS AND WOULD MAKE THAT A CONTINGENCY OF ANY INVESTOR AGREEMENT THE ASSOCIATES SAID WE'RE AT THE STAGE WHERE A BUNCH OF PEOPLE ARE APPROACHING QVC SAID ONE PERSON CLOSE TO THE COMPANY THE REAL QUESTION BEFORE QVC IS WHERE IS THE RIGHT CHEMISTRY WHAT IS THE RIGHT DEAL THIS EXECUTIVE ADDED BARRY IS THE QUARTERBACK OFFICIALS OF QVC LIBERTY MEDIA CORP COMCAST CORP AND TELECOMMUNICATIONS INC DISMISSED SPECULATION THAT THERE IS DISSENT WITHIN THE QVC CAMP OVER THE GROWING ROLE OF JOHN MALONE AND TCI MR MALONE IS CHIEF EXECUTIVE OFFICER OF TCI AND CHAIRMAN OF LIBERTY TCI HAS ANNOUNCED PLANS TO REACQUIRE LIBERTY WHICH IT SPUN OFF TWO YEARS AGO LIBERTY COMCAST AND MR DILLER JOINTLY CONTROL QVC AND LIBERTY AND COMCAST HAVE AGREED TO EACH INVEST 500 MILLION IN THE QVC OFFER FOR PARAMOUNT IF QVC ACQUIRES PARAMOUNT AFTER TCI MERGES WITH LIBERTY TCI WOULD EFFECTIVELY CONTROL ABOUT 9 OF PARAMOUNT WHILE MR DILLER AND COMCAST WOULD EACH CONTROL ABOUT 46 BUT THE QVC PARTNERS HAVE A BINDING AGREEMENT TO VOTE THEIR SHARES TOGETHER IN CORPORATE MATTERS MOREOVER MR MALONE IS SAID BY ASSOCIATES TO HAVE NO INTEREST IN ALIENATING MR DILLER OR THROWING HIS WEIGHT AROUND IN ANY WAY THAT WOULD JEOPARDIZE THEIR PARTNERSHIP MARK ROBICHAUX CONTRIBUTED TO THIS ARTICLE 9310120074 931012 TECHNOLOGY NOVELL WILL TRANSFER TRADEMARK RIGHTS FOR UNIX SYSTEM TO INDUSTRY CONSORTIUM BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL NOVELL INC AGREED TO TRANSFER TRADEMARK RIGHTS TO THE UNIX OPERATING SYSTEM TO A NONPROFIT INDUSTRY CONSORTIUM THE LATEST IN A SERIES OF STEPS TO END TECHNICAL DISPUTES OVER THE WIDELY USED SOFTWARE THE AGREEMENT SUPPORTED BY MOST MAJOR COMPUTER AND SOFTWARE COMPANIES TRANSFERS RIGHTS TO THE UNIX TRADEMARK TO X/OPEN CO A 14COMPANY ORGANIZATION THAT HELPS SET TECHNICAL STANDARDS FOR THE INDUSTRY THE PACT ALLOWS ANY COMPANY THE RIGHT TO USE THE UNIX NAME AS LONG AS ITS SOFTWARE COMPLIES WITH A NEW SET OF SPECIFICATIONS DESIGNED TO ENSURE THAT APPLICATION PROGRAMS WORK WITH DIFFERENT VERSIONS OF UNIX NOVELL RETAINS OWNERSHIP OF THE UNDERLYING UNIX SOURCE CODE AND WILL CONTINUE TO LICENSE IT TO OTHER COMPANIES BY YIELDING CONTROL OVER THE UNIX NAME AND KEY SPECIFICATIONS NOVELL REMOVES OBJECTIONS FROM COMPETITORS THAT HAMPERED EFFORTS TO STANDARDIZE UNIX AND MAKE IT COMPETE MORE EFFECTIVELY WITH THE NEW WINDOWS NT OPERATING SYSTEM FROM MICROSOFT CORP WHICH IS TRYING TO MOVE INTO MARKETS LONG CONTROLLED BY UNIX SYSTEM SUPPLIERS WE ARE ACKNOWLEDGING THE FACT THAT NOVELL IS NOT THE SOLE SOURCE OF TECHNOLOGY GOING FORWARD SAID KANWAL REKHI EXECUTIVE VICE PRESIDENT IN CHARGE OF NOVELL'S UNIX SYSTEMS GROUP THE SPECIFICATIONS WOULD BE SET BY X/OPEN OPERATING SYSTEMS CONTROL THE BASIC INTERNAL HOUSEKEEPING FUNCTIONS OF COMPUTERS UNIX INVENTED BY AMERICAN TELEPHONE & TELEGRAPH CO HAS BEEN CUSTOMTAILORED BY MOST MAJOR COMPUTER MAKERS TO RUN PERSONAL COMPUTERS DESKTOP WORKSTATIONS MINICOMPUTERS AND MAINFRAMES THE SUBTLE DIFFERENCES HAVE MADE IT IMPOSSIBLE TO WRITE ONE APPLICATION PROGRAM THAT WOULD WORK WITHOUT MODIFICATIONS ON ALL THE UNIX VERSIONS NOVELL BESTKNOWN FOR ITS NETWARE OPERATING SYSTEM FOR COMPUTER NETWORKS ACQUIRED TITLE TO UNIX IN JULY WHEN IT BOUGHT UNIX SYSTEMS LABORATORIES FROM AT&T FOR 320 MILLION IN STOCK BESIDES RECEIVING ROYALTIES FROM PRODUCTS BASED ON ITS UNIX SOURCE CODE NOVELL HAS BEEN AGGRESSIVELY SELLING A COMPLETE VERSION OF THE OPERATING SYSTEM CALLED UNIXWARE ALONG WITH ITS NETWARE PROGRAM IT HAS ALSO BEEN TRYING TO BUILD SUPPORT FOR A SOCALLED APPLICATION PROGRAMMING INTERFACE A SET OF SPECIFICATIONS THAT WOULD ALLOW PROGRAMMERS TO WRITE ONE VERSION OF AN APPLICATION PROGRAM AND HAVE IT CONVERTED TO MULTIPLE UNIX VERSIONS THROUGH A PROCESS CALLED RECOMPILATION COMPETING UNIX SUPPLIERS INCLUDING SUN MICROSYSTEMS INC AND SANTA CRUZ OPERATION INC OBJECTED THAT NOVELL WAS TRYING TO USE ITS INFLUENCE OVER SOFTWARE STANDARDS TO UNFAIRLY BENEFIT ITS UNIXWARE AND NETWARE PRODUCTS MR REKHI SAID THE AGREEMENT ANNOUNCED YESTERDAY SHOULD ANSWER THOSE OBJECTIONS AND ENSURE THAT ALL UNIX VENDORS CAN NOW COMPETE ON AN EQUAL FOOTING THE ARRANGEMENT WAS ENDORSED BY REPRESENTATIVES OF SUN SANTA CRUZ OPERATION INTERNATIONAL BUSINESS MACHINES CORP HEWLETTPACKARD CO DIGITAL EQUIPMENT CORP AND OTHERS BEFORE NOVELL COULD SAY THEY WERE THE REAL UNIX SAID JIM WILT SANTA CRUZ OPERATION'S VICE PRESIDENT BUSINESS DEVELOPMENT NOW IT'S A LEVEL PLAYING FIELD UNDER THE AGREEMENT NOVELL BECOMES A MEMBER OF X/OPEN WITH AN EQUAL SAY OVER FUTURE UNIX SPECIFICATIONS X/OPEN WILL RECEIVE AN UNDETERMINED ROYALTY FEE FROM COMPANIES THAT WISH TO LICENSE THE UNIX TRADEMARK BECAUSE IT NO LONGER HAS THE VALUE OF THAT TRADEMARK NOVELL SAID IT WOULD TAKE A 15 MILLION WRITEOFF AGAINST EARNINGS OVER THREE YEARS 9310120072 931012 BUSINESS BRIEF JOHNSON & JOHNSON FIRM SAYS SWEETENER CLEARED FOR MARKETING IN AUSTRALIA JOHNSON & JOHNSON HAS RECEIVED CLEARANCE FROM AUSTRALIAN AUTHORITIES TO MARKET SUCRALOSE A LOWCALORIE SWEETENER PRODUCED BY THE NEW BRUNSWICK NJ HEALTH CARE AND CONSUMER PRODUCTS COMPANY AUSTRALIA JOINS CANADA AND RUSSIA IN CLEARING USE OF THE SWEETENER WHICH IS MARKETED UNDER THE BRAND NAME SPLENDA USED IN FOOD AND BEVERAGES SUCH AS CANDY BARS AND SODA DRINKS AS WELL AS IN TABLETOP PACKAGES SPLENDA IS THE ONLY LOWCALORIE SWEETENER THAT IS MADE FROM SUGAR THE COMPANY SAID A JOHNSON & JOHNSON SPOKESMAN SAID THE COMPANY HAS SUBMITTED SPLENDA FOR REVIEW AND APPROVAL BY AUTHORITIES IN THE US UK AND NEW ZEALAND AN APPLICATION TO MARKET THE PRODUCT IN THE US HAS BEEN PENDING AT THE FOOD AND DRUG ADMINISTRATION SINCE FEBRUARY 1987 THE US HAS A 1 BILLION MARKET FOR SWEETENERS 9310120071 931012 RAWSTEEL PRODUCTION ROSE 31 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 31 LAST WEEK TO 1823000 TONS FROM 1769000 TONS THE PREVIOUS WEEK SAID THE AMERICAN IRON AND STEEL INSTITUTE LAST WEEK'S OUTPUT ROSE 112 FROM THE 1639000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 866 OF ITS CAPABILITY LAST WEEK COMPARED WITH 843 THE PREVIOUS WEEK AND 758 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9310120070 931012 BUSINESS BRIEF VF CORP CLOTHING MAKER TO PURCHASE HH CUTLER FOR 132 MILLION APPAREL MAKER VF CORP WYOMISSING PA SAID IT AGREED TO ACQUIRE PRIVATELY HELD CLOTHING MAKER HH CUTLER CO FOR 132 MILLION VF SAID THE ACQUISITION OF CUTLER WHOSE 1993 REVENUE IS EXPECTED TO EXCEED 200 MILLION SHOULD INCREASE ITS YOUTH APPAREL BUSINESS BY HALF VF'S HEALTHTEX LEE WRANGLER AND GIRBAUD LINES OF CHILDREN'S CLOTHING HAVE ANNUAL SALES OF MORE THAN 400 MILLION CUTLER BASED IN GRAND RAPIDS MICH MARKETS WALT DISNEY FISHERPRICE CUTLER AND PRIVATELABEL CHILDREN'S CLOTHES VF CHAIRMAN AND CHIEF EXECUTIVE LAWRENCE R PUGH SAID THE ACQUISITION FOR 160 MILLION INCLUDING ASSUMED DEBT FITS THE COMPANY'S STRATEGY TO BRANCH INTO MAJOR CATEGORIES OF RETAIL APPAREL SALES CUTLER SAID THE ACQUISITION WOULD ENABLE IT TO VIGOROUSLY EXPAND INTO THE ADULT MARKET 9310120069 931012 NOTABLE & QUOTABLE IN AN INTERVIEW IN THE OCTOBER FREEDOM REVIEW AUTHOR NICHOLAS EBERSTADT IS ASKED WHETHER THE RICH INDUSTRIALIZED NATIONS ARE RESPONSIBLE FOR THE POVERTY OF LESS DEVELOPED COUNTRIES IT IS NOT THE RIGHT QUESTION THERE IS NOTHING NEW ABOUT POVERTY IT IS AS OLD AS THE HUMAN CONDITION WHAT'S NEW RADICALLY NEW ABOUT THE HUMAN CONDITION IS LONG LIFE SPANS AND HIGH LEVELS OF PER CAPITA PRODUCTIVITY THE PROGRESS MANKIND HAS MADE OVER THE PAST TWO CENTURIES IS AMAZING AT THE BEGINNING OF THE NINETEENTH CENTURY THERE WAS HARDLY A POPULATION IN THE WORLD WITH A LIFE EXPECTANCY AS LONG AS FORTYFIVE YEARS AT THE END OF THE TWENTIETH CENTURY THERE IS HARDLY A POPULATION IN THE WORLD WITH A LIFE EXPECTANCY THAT SHORT FIGURES FOR THE WORLD AS A WHOLE ARE PROBLEMATIC BUT SOME EFFORTS TO COMPUTE GLOBAL GDP SUGGEST AN INCREASE BY A FACTOR OF FOUR IN PER CAPITA OUTPUT ON THIS PLANET DURING THIS CENTURY PROGRESS HAS NOT BEEN SCANT EVEN FOR WHAT WE CONSIDER THE MOST IMPOVERISHED POPULATIONS 9310120065 931012 BUSINESS BRIEF FURR'S/BISHOP'S INC CAFETERIA OPERATOR RECEIVES WAIVER TO AVOID DEFAULT FURR'S/BISHOP'S INC SAID IT RECEIVED A WAIVER TO A BANK CREDIT AGREEMENT AND AS A RESULT WOULD AVOID DEFAULT ON ITS 2024 MILLION IN DEBT OUTSTANDING THIS MONTH THE LUBBOCK TEXAS CAFETERIA OPERATOR WARNED THAT IT COULD DEFAULT DUE TO A 54 MILLION AWARD MADE BY A DELAWARE ARBITRATION PANEL TO GENERAL ELECTRIC PENSION FUND THE AWARD AGAINST FURR'S WHOLLY OWNED FURR'S/BISHOPS CAFETERIAS LP RELATES TO A DISPUTE OVER VALUATION OF PARTNERSHIP UNITS FURR'S SAID IT HAD RECEIVED A WAIVER ON TECHNICAL DEFAULT PROVISIONS OF THE 95 MILLION BANK CREDIT AGREEMENT OF ITS CAVALCADE FOODS INC SUBSIDIARY HAD THE COMPANY BEEN IN DEFAULT ON THE BANK CREDIT AGREEMENT IT ALSO WOULD HAVE TECHNICALLY DEFAULTED ON ITS 1929 MILLION IN PRINCIPAL AMOUNT OF SENIOR SECURED NOTES SAID JOE CONNER CHIEF FINANCIAL OFFICER THE COMPANY DOES NOT HAVE THE CASH TO SATISFY THE AWARD AND IS EXPLORING ALTERNATIVES WITH THE PENSION HE SAID 9310120064 931012 BUSINESS BRIEFS ACME METALS INC SAID WORKERS AT ITS ACME STEEL CO AND ACME PACKAGING CORP SUBSIDIARIES IN THE CHICAGO AREA RATIFIED A NEW SIXYEAR CONTRACT THE AGREEMENT CONTAINS A NOSTRIKE PROVISION AND A WAGE REOPENER AFTER THREE YEARS SUBJECT TO ARBITRATION CENTURY TELEPHONE ENTERPRISES INC SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE CELUTEL INC THE ACQUISISTION FOR ABOUT 105 MILLION IN CASH AND STOCK AND THE ASSUMPTION OF 40 MILLION OF CELUTEL'S DEBT MUST BE APPROVED BY CELUTEL SHAREHOLDERS AND BY REGULATORS FLEMING COS PLANS A 24 MILLION EXPANSION OF ITS MASSILLON OHIO DISTRIBUTION CENTER IN 1994 INCREASING THE SIZE OF THE FACILITY TO 777000 SQUARE FEET FROM 472000 SQUARE FEET UNISYS CORP SAID FLORIDA'S HEALTHCARE ADMINISTRATION INTENDS TO AWARD THE COMPANY AN 81 MILLION 69MONTH CONTRACT TO SERVE AS MEDICAID FISCAL AGENT 9310120063 931012 COALHAULING TRAINS LEAVE VIRGINIANS FUMING IN THE DUST BLACK POWDER SULLIES HOMES AND EVERYTHING IN THEM AS RAILROAD SEEKS REMEDY BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL ELLISTON VA UNDER A BLAZING MIDDAY SUN A SMALL GROUP OF SCIENTISTS AND RAILROADERS HIGHBALL DOWN THE TRACKS IN A CABOOSE COUPLED TO THE REAR OF A MILELONG COAL TRAIN G DAVID EMMITT A PHD METEOROLOGIST PEERS INTO A LAPTOP COMPUTER SCREEN WIRED TO AN ARRAY OF SENSORS ON BOARD THE TRAIN SUDDENLY THE SHOCK WAVE FROM A PASSING FREIGHT TRAIN SENDS A 40FOOTHIGH CLOUD OF BLACK DUST BILLOWING UPWARD BLOTTING OUT THE LIGHT AND PELTING THE CABOOSE WITH GRIT THE GRAY LINE TRACING EMISSIONS ON HIS SCREEN RISES VERTICALLY AND DISAPPEARS OFF THE TOP IT'S A BLOWOUT DR EMMITT SAYS LATER THE CLOUD SETTLES ON FIELDS HOMES A TRAILER COURT AND A RESTAURANT BY THE TRACKS DR EMMITT AN ENVIRONMENTAL CONSULTANT IS TRYING TO MEASURE A PROBLEM THAT IS SMOTHERING TOWNS ALONG THE TRACKS OF NORFOLK SOUTHERN CORP IN COAL DUST AND PITTING ANGRY RESIDENTS AGAINST THE RAILROAD AND EACH OTHER AS COAL PRODUCERS SHIP THE FINER DRIER COAL THAT CUSTOMERS INCREASINGLY DEMAND THE FALLOUT HAS TRACKSIDE COMMUNITIES FUMING ALONG THE 360 MILES OF TRACK FROM BLUEFIELD WVA TO NORFOLK VA FROM THE COAL FIELDS TO THE COAL PIERS RESIDENTS ARE ATTENDING MEETINGS WRITING LETTERS AND PRESSING POLITICIANS FOR HELP THE TRACKS CARRY ENOUGH COAL EACH YEAR TO FILL A FREIGHT TRAIN 6000 MILES LONG AND THE POWDERY DUST THAT FLIES AWAY FORMS A GREASY BLACK FILM WHERE IT LANDS MARIANNA FILLMORE A HIGHSCHOOL SPANISH TEACHER LIVES 30 FEET FROM THE TRACKS IN WHITETHORNE VA A 12FOOT HEDGE SHIELDS HER HOUSE IN FRONT A DOUBLE ROW OF PINE TREES BUFFERS HER SIDE YARD STILL COAL DUST SOILS HER FLOORS AND FURNITURE IT GETS IN YOUR HAIR YOUR EARS INSIDE YOUR UNDERWEAR SHE SAYS IT'S JUST EVERYWHERE A FEW YEARS AGO AN UNUSUALLY THICK CLOUD OF COAL DUST ROLLED IN OVER PAM LANE'S HOME IN SHAWSVILLE VA IT WAS LIKE NIGHTTIME IN THE MIDDLE OF THE DAY LIKE AN ECLIPSE SAYS MRS LANE WHO HELD HER BREATH UNTIL THE BLACK CLOUD PASSED WHEN SHE ENTERED HER HOUSE I WAS ALMOST IN SHOCK IT LOOKED LIKE SOOT DAMAGE FROM A FIRE SHE SAYS THE CLEANUP COST SEVERAL THOUSAND DOLLARS WHICH THE RAILROAD PAID AND LIKE MANY TRACKSIDE RESIDENTS HAVE DONE MRS LANE HAS INSTALLED CENTRAL AIR CONDITIONING BUT HER CAR FLOWER BEDS AND PATIO FURNITURE STILL GLISTEN WITH COAL DUST NOT EVERYONE IS SYMPATHETIC THOUGH LINDA UNDERWOOD SAYS THE TRACKS WERE THERE LONG BEFORE MRS LANE HER FIRST COUSIN MOVED IN I WOULD HATE TO SEE A LOT OF GRIPING AND CARRYING ON CAUSE THE RAILROAD TO PULL OUT OF THIS AREA SAYS MRS UNDERWOOD WHO ACKNOWLEDGES A VESTED INTEREST HER HUSBAND IS A NORFOLK SOUTHERN LOCOMOTIVE ENGINEER NORFOLK SOUTHERN OFFICIALS IGNORED THE COMPLAINTS AT FIRST ARGUING THAT IT WASN'T THEIR COAL AND THEY SAID THAT ONLY A MINORITY OF THEIR TRAINS WHICH RUN UP TO TWOMILES LONG KICKED UP ANY DUST BUT THEY REALIZED THEY HAD TO DO SOMETHING AFTER VIRGINIA LAWMAKERS PROPOSED A BILL REQUIRING THE RAILROAD TO PUT TARPAULINS ON ITS 45000 COAL CARS THE COST AT 700 A CAR WOULD BE DEVASTATING SAYS JW FOX JR A NORFOLK SOUTHERN MARKETING EXECUTIVE TARPS WOULD ALSO ADD 200 TO THE COST OF LOADING AND UNLOADING EACH CAR SO FAR NORFOLK SOUTHERN HAS SPEWED OUT STUDIES PROPOSALS AND TESTS IT SET UP AN 800 NUMBER FOR REPORTING DUSTY TRAINS THE RAILROAD SPENT NEARLY 1 MILLION TO BUILD A STATION NEAR BLUEFIELD THAT SPRAYS WATER ON LOADED COAL CARS AND IT RETAINED DR EMMITT OF SIMPSON WEATHER ASSOCIATES A CHARLOTTESVILLE VA CONSULTING FIRM TO STUDY THE PROBLEM AND SUGGEST COSTEFFECTIVE SOLUTIONS SURE THERE'S COAL COMING OFF AND SOMETIMES IN THE WRONG PLACE LIKE SOMEONE'S YARD SAYS DR EMMITT BUT YOU CAN PUT A RAILROAD OUT OF BUSINESS BY OVERTREATING THIS DR EMMITT'S CHARGE IS TO TARGET THE DUSTIEST COALS FOR SPECIAL TREATMENT WHILE PERSUADING COAL PRODUCERS IT IS IN THEIR ECONOMIC INTEREST TO KEEP COAL FROM BLOWING OFF IN TRANSIT THE RAILROAD ESTIMATES EACH 100TON CARLOAD LOSES UP TO 600 POUNDS OF COAL EN ROUTE FROM THE MINES TO THE PORT END OF THE TUNNEL ONE RECENT DAY DR EMMITT DRESSED IN BLUE JEANS AND HARD HAT IS IN A GRAY CABOOSE BEHIND A TRAIN HEAPED HIGH WITH CONSOL INC COAL HE DOESN'T HAVE TO WAIT LONG BEFORE DUST LOFTS FROM THE CAR AHEAD THERE'S A GOOD BLAST SAYS HIS ASSOCIATE EDWARD CALVIN IT'S FOGGING IN AFTER THE TRAIN SLOWS AT NARROWS VA TO BE SPRAYED WITH WATER IT PICKS UP SPEED ROLLING THROUGH THE SCENIC NEW RIVER VALLEY PAST CLIFFS WOODS STREAMS HOMES AND SATELLITE DISHES PERCHED IN THE CABOOSE'S CUPOLA WITH THE SIMPSON CONSULTANTS ARE MR FOX THE NORFOLK SOUTHERN EXECUTIVE AND JOSEPH GENNETTE A RAILROAD ENVIRONMENTAL ENGINEER THE WATER SUPPRESSES THE DUST FOR ABOUT TWO HOURS BUT THEN EVAPORATES IN THE AFTERNOON SUN FINALLY THE TURBULENCE CAUSED BY THE TRAIN'S EMERGENCE FROM A LONG TUNNEL SENDS UP BURSTS OF DUST BUT THE BIGGEST RELEASE OF FUGITIVE EMISSIONS OCCURS WHEN THE TRAIN PASSES ANOTHER TRAIN AT ELLISTON LEAVING DIANA DUNBAR IN THE DUST MS DUNBAR A WAITRESS AT WILSON'S RESTAURANT WAS SEATED IN HER CAR AT A RAILROAD CROSSING MY WINDOW WAS ALL SMOKED UP IT WAS LIKE SOOT OUT OF A STOVEPIPE SHE SAYS EVEN THE INSIDE OF THE CABOOSE WHICH IS CLOSED UP AIRCONDITIONED AND CRAMMED WITH ELECTRONIC GEAR ISN'T SAFE FROM COAL DUST MR CALVIN SAYS HE WAS BLACKENED ON A PREVIOUS TRIP WHEN DUST FELL THROUGH A CEILING VENT IN THE COMMODE THE VENT HAS SINCE BEEN SEALED WITH A STEEL PLATE STILL COAL DUST COLLECTS ON THE REFRIGERATOR AND A WINDOWSILL DR EMMITT IS HOPEFUL THAT THE DUSTIEST COALS CAN BE CONTAINED BY SPRAYING LOADED CARS WITH SOME SORT OF CHEMICAL THAT BINDS THE SURFACE BUT HE HAS REJECTED SUGGESTIONS THAT THE RAILROAD APPLY PAPIERMACHE MODIFIED BEET MOLASSES OR PLASTIC SHRINKWRAP TO COAL CARS MEANWHILE THE RAILROAD'S NEIGHBORS HAVE THEIR OWN WAYS TO COPE THEY SEAL WINDOWS INSTALL CENTRAL AIR CONDITIONING PLANT TREES AND HAVE THEIR CHILDREN WASH OFF WITH A HOSE BEFORE COMING INSIDE MAYNARD HAYMAKER OWNER OF A PRODUCE AND SOUVENIR STORE IN MONETA VA HAS LEARNED TO LIVE WITH THE DUST IT MAKES FOR EXTRA WORK BUT MONETA WOULDN'T EXIST WITHOUT THE RAILROAD HE SAYS NONETHELESS MR HAYMAKER WASHES DOWN THE WHITE METAL SHELVES AFTER A DUSTY TRAIN GOES THROUGH AND HE KEEPS HIS STOCK OF 300 TSHIRTS HANGING ON RACKS IN INDIVIDUAL PLASTIC BAGS PEOPLE DON'T WANT TO BUY A NEW TSHIRT AND HAVE TO WASH IT HE SAYS 9310120062 931012 REVIEW & OUTLOOK EDITORIAL ASIDES JUDICIOUS TEMPERAMENT POLITICIANS LONG HAVE MADE HAY OF INSURANCE COMPANIES BUT CALIFORNIA'S ELECTED COMMISSIONER FOR THE INDUSTRY JOHN GARAMENDI RATES SPECIAL NOTICE HE DELIGHTS IN CALLING THOSE HE OVERSEES PIGS AT THE TROUGH NOW A STATE JUDGE IN SACRAMENTO HAS REINED IN PART OF HIS ACT IN 1991 MR GARAMENDI BY FIAT BEGAN ASSESSING INSURERS A FEE OF ABOUT 200 FOR EACH PUBLIC COMPLAINT FILED WITH HIS DEPARTMENT EVEN THOUGH MOST PROVE INVALID THE JUDGE SAID THE IMPOSITION WAS ARBITRARY AND ABOUT 5 MILLION SHOULD BE RETURNED TO THE COMPANIES MR GARAMENDI IS APPEALING MEANWHILE HE SEEKS TO BE GOVERNOR 9310120061 931012 SCECORP DROPS MEXICAN ELECTRIC PLANT UNDER POLITICAL ENVIRONMENTAL PRESSURE BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL SCECORP ABRUPTLY PULLED OUT OF A 18 BILLION COALFIRED ELECTRIC GENERATING PLANT UNDER CONSTRUCTION IN NORTHERN MEXICO AMID MOUNTING POLITICAL TURMOIL AND ENVIRONMENTAL ATTACKS FOCUSING ON THE PROJECT THE COLLAPSE OF SCE'S PLANS TO OPERATE AND OWN 49 OF THE CARBON II PLANT SITUATED 20 MILES SOUTH OF THE TEXAS BORDER AT LEAST TEMPORARILY DERAILS THE BIG CALIFORNIA UTILITY'S HOPES OF GAINING AN IMPORTANT FOOTHOLD IN WHAT ITS EXECUTIVES HAVE DESCRIBED AS A POTENTIALLY HUGE AND LUCRATIVE NEW MARKET MORE BROADLY YESTERDAY'S SURPRISE ANNOUNCEMENT INDICATES ESCALATING FRICTION BETWEEN MEXICAN GOVERNMENT OFFICIALS AND THEIR US COUNTERPARTS OVER CROSSBORDER POLLUTION ISSUES MEXICAN OFFICIALS HAVE COMPLAINED BITTERLY THAT THE CONTROVERSY OVER EMISSIONS FROM THE PLANT AND A SISTER FACILITY WHICH TOGETHER ARE EXPECTED TO BECOME THE 10THLARGEST SOURCE OF SULFURDIOXIDE POLLUTION ON THE CONTINENT HAS BEEN POUNCED ON BY CERTAIN US LAWMAKERS AND OTHERS WHO SEEK THE DEFEAT OF THE NORTH AMERICAN FREE TRADE AGREEMENT THE PLANT'S FOES CROWED ABOUT THEIR VICTORY CARBON II BECAME A SYMBOL AND A TARGET FOR ALL TYPES OF ENVIRONMENTAL PROBLEMS ALONG THE BORDER SAID CRAIG MERRILEES THE HEAD OF A CALIFORNIABASED ANTINAFTA COALITION IT SENDS A SIGNAL THAT DOING IN BUSINESS IN MEXICO IN A WAY THAT IGNORES ENVIRONMENTAL STANDARDS CAN BE DONE ONLY AT GREAT RISK TO INVESTORS TERMINATION OF FINANCING PLANS FOR CARBON II ALSO HIGHLIGHTS THE FINANCIAL AND PUBLICRELATIONS PITFALLS CONFRONTING US UTILITIES THAT CHOOSE TO AGGRESSIVELY PURSUE ELECTRICGENERATING PROJECTS ELSEWHERE OVERSEAS AS RECENTLY AS A FEW WEEKS AGO SCE CHAIRMAN JOHN BRYSON AND OTHER COMPANY EXECUTIVES EXPRESSED CONFIDENCE THAT A FINANCING PACKAGE WOULD BE APPROVED QUICKLY AND THEY DISMISSED AS UNFOUNDED THE COMPLAINTS BY FEDERAL AIRPOLLUTION REGULATORS INCLUDING SOME FROM THE INTERIOR DEPARTMENT AND THE ENVIRONMENTAL PROTECTION AGENCY THAT THE PLANT THREATENS TO REDUCE SIGNIFICANTLY THE VISIBILITY IN ONE NATIONAL PARK AND TO DEGRADE AIR QUALITY IN PARTS OF THE SOUTHWEST IN ROSEMEAD CALIF AN SCE SPOKESMAN DECLINED TO GO INTO DETAIL ABOUT WHY THE FINANCING PLAN COLLAPSED SAYING ONLY THAT THERE WERE SEVERAL SIGNIFICANT CONTRACTUAL ISSUES THAT COULD NOT BE RESOLVED WITH MEXICAN OFFICIALS IN ADDITION TO ENVIRONMENTAL PROBLEMS SOME SENIOR OFFICIALS OF MEXICO'S STATERUN UTILITY OPPOSED THE PROJECT MEANWHILE MEXICO'S IMPENDING ELECTIONS COMPLICATED THE TASK OF CRAFTING A FINANCING PACKAGE THAT WOULD BE ACCEPTABLE TO FOREIGN BANKERS WITHOUT UPSETTING MEXICO'S POLICY OF PROVIDING LOWCOST ELECTRICAL POWER WHATEVER THE CAUSE SCE'S FAILURE TO LOCK UP THE DEAL WILL PLAGUE IT FOR A LONG TIME FOR THE SHORT TERM SCE'S THIRDQUARTER RESULTS WILL INCLUDE AN 18 MILLION AFTERTAX CHARGE EQUAL TO ABOUT FOUR CENTS A SHARE FOR THE LONGER TERM THE COMPANY SAID THE COLLAPSE OF THE PROJECT WHICH INVOLVED ITS MISSION ENERGY UNIT WILL PULL THE UNIT'S 1993 EARNINGS SIGNIFICANTLY BELOW 1992 LEVELS AND WILL SIGNIFICANTLY AFFECT ITS PROFIT POTENTIAL FOR 1994 AND PERHAPS LATER YEARS SCE EARNED 2723 MILLION OR 122 A SHARE IN THE 1992 THIRD QUARTER OVERALL SCE SANK MORE THAN 350 MILLION INTO THE CARBON II PROJECT OF WHICH IT SAID IT EXPECTS TO RECOVER 300 MILLION FROM ITS PARTNERS AND MEXCIO'S STATERUN UTILITY EVEN AS HE ANNOUNCED THAT THE MEXICAN GOVERNMENT WILL RETAIN OWNERSHIP OF THE 1400MEGAWATT PLANT MR BRYSON SAID THAT HIS FIRM CONTINUES TO APPLAUD AND SUPPORT THE LEADERSHIP OF PRESIDENT CARLOS SALINAS DE GORTARI IN MOVING TO PRIVATIZE ELECTRICITY GENERATION IN MEXICO BUT MISSION ENERGY'S EXPERIENCE IN MEXICO WHERE IT WAS WARMLY RECEIVED INITIALLY AND TOUTED AS A LEADING EXAMPLE OF THE SALINAS GOVERNMENT'S AMBITIOUS INDUSTRIALIZATION PLANS HAS MADE IT AN INVITING TARGET FOR ENVIRONMENTAL GROUPS BACK HOME THE UTILITY'S PLEDGE TO EMPHASIZE RENEWABLE ENERGY TECHNOLOGIES AND TO SLASH ITS CARBONDIOXIDE EMISSIONS FROM US PLANTS NEARLY 20 BY 2010 THESE CRITICS CONTEND IS UNDERCUT BY ITS PARTICIPATION IN COALFIRED PLANTS OVERSEAS THE WORLDWATCH INSTITUTE FOR EXAMPLE RECENTLY BLASTED SCE FOR ITS FOREIGN VENTURES AND PLEDGED TO ASK THE WHITE HOUSE TO COUNT EMISSIONS FROM THE COMPANY'S OVERSEAS PLANTS AGAINST EMISSION REDUCTIONS IT CLAIMS IN THE US COMPANY SPOKESMAN LEWIS PHELPS SAID THAT THE OVERSEAS PROJECTS RANGING FROM EUROPE TO THE FAR EAST WOULD TAKE PLACE ANYWAY AND THEREFORE SCE SHOULDN'T BE HELD RESPONSIBLE FOR ANY NET INCREASE IN EMISSIONS WORLDWIDE 9310120060 931012 PARAMOUNT IS TARGET OF SUIT BY COMPANY OVER CLEANUP COSTS NEW YORK HORSEHEAD INDUSTRIES INC FILED A LAWSUIT AGAINST PARAMOUNT COMMUNICATIONS INC ASSERTING POTENTIALLY LARGE CLAIMS IN ENVIRONMENTAL CLEANUP COSTS OF A SITE IN PENNSYLVANIA HORSEHEAD A CLOSELY HELD MANUFACTURING COMPANY FILED ITS COMPLAINT IN FEDERAL COURT IN SCRANTON PA IN 1981 HORSEHEAD BOUGHT THE SITE IN PALMERTON PA FROM GULF & WESTERN NS GROUP A METALS AND MINING UNIT OF PARAMOUNT THAT HAS SINCE BEEN LIQUIDATED THE SITE WOUND UP ON THE ENVIRONMENTAL PROTECTION AGENCY'S SUPERFUND LIST FOR CLEANUP IN 1983 MAINLY BECAUSE OF A 25MILELONG 100FOOTHIGH CINDER BANK FROM AN OLD ZINCSMELTING OPERATION HORSEHEAD SAID PARAMOUNT RESPONDED IN A WRITTEN STATEMENT THAT IN THE 1981 PURCHASE HORSEHEAD ASSUMED FULL RESPONSIBILITY FOR ENVIRONMENTAL LIABILITIES HORSEHEAD'S CLAIMS HAVEN'T THE SLIGHTEST MERIT PARAMOUNT SAID WE INTEND TO DEFEND THE SUIT VIGOROUSLY THE CINDER BANK IS CONTAMINATED WITH LEAD WHICH COULD RUN OFF AND CONTAMINATE SURFACE WATER AND SEEP INTO GROUNDWATER HORSEHEAD SAID IT HAS SPENT 15 MILLION SINCE 1983 ON CLEANUP WORK BUT MORE SIGNIFICANT EFFORTS COULD REQUIRE HUNDREDS OF MILLIONS OF DOLLARS MORE HORSEHEAD OPERATES A SMALL ZINCPOWDER PLANT AT THE SITE HORSEHEAD SAYS THE EPA HAS NAMED PARAMOUNT AS A POTENTIALLY RESPONSIBLE PARTY BUT THAT PARAMOUNT HAS CHIPPED IN VERY LITTLE TOWARD THE CLEANUP OF THE SITE HORSEHEAD DISPUTED THAT IT ASSUMED THE ENVIRONMENTAL LIABILITIES OF THE SITE WHEN IT BOUGHT THE LAND AND ASSETS FROM PARAMOUNT 9310120059 931012 REVIEW & OUTLOOK EDITORIAL CATCH A PLANE I DON'T NEED A NATIONAL AIRLINE I NEED TO HAVE CHEAP AIR TRANSPORT THIS HERESY WAS UTTERED BY ONE DIDIER FAUCONNIER A BELGIAN BUSINESSMAN AS HE WAITED FOR AN OVERPRICED FLIGHT OUT OF BRUSSELS UNFORTUNATELY THE DIPLOMATS IN CHARGE OF SPINNING RED TAPE AROUND THE GLOBAL AIRWAYS DON'T LISTEN TO CONSUMERS INCLUDING AMERICANS WHO ARE TAKEN FOR THE SAME RIDE AS MR FAUCONNIER ONCE THEY GET OUTSIDE THE DEREGULATED US SKIES INSTEAD WE GET THINGS LIKE THE NEW USGERMAN AVIATION TREATY SIGNED RECENTLY IT FREEZES THE NUMBER OF FLIGHTS US CARRIERS CAN OFFER TO AND FROM GERMANY THOUGH IT ALSO GIVES LUFTHANSA GREATER SCOPE FOR MARKETING TIEUPS WITH UNITED AIRLINES THE NEW BILATERAL ARRANGEMENT REPLACES A MORE COMPETITIVE REGIME THAT HAD CAUSED GOVERNMENTOWNED LUFTHANSA'S SHARE OF THE TRAFFIC TO FALL TO 40 FROM 70 OF COURSE NEGOTIATORS WERE MERELY FOLLOWING THE MARCHING ORDERS OF THE INCUMBENT CARRIERS GERMANY'S CHANCELLOR KOHL PERSONALLY WEIGHED IN ON BEHALF OF FLABBY COMFY LUFTHANSA WHOSE COSTS ARE TWICE THOSE OF THE US CARRIERS ON THE US SIDE NEGOTIATORS LENT AN EAR TO DELTA AIR LINES WHICH IS STILL TRYING TO DIGEST ITS COSTLY ACQUISITION OF PAN AM'S FRANKFURT HUB NO WONDER THE PLANET IS BACKSLIDING INTO A MORE PROTECTIONIST AVIATION REGIME IT'S UP TO THE US TO BRING SOME STRATEGY ANO THESE TALKS INSTEAD OF JUST HORSE TRADING LAST YEAR THE FRENCH THUMBED THEIR NOSES AT THEIR EXISTING TREATY WITH THE US NOW PARIS THREATENS TO SHUT DOWN TRAFFIC ALTOGETHER UNLESS WASHINGTON DELIVERS UP MORE PASSENGERS TO BE RAVISHED AT THE TICKET COUNTER BY AIR FRANCE JAPAN WHIMPERS THAT JAL ISN'T GETTING A FAIR SHARE OF PIGEONS EITHER AUSTRALIA AND A BUNCH OF OTHERS ARE WATCHING CLOSELY AND PONDERING WHETHER TO TRY TO BULLY WASHINGTON INTO ROLLING BACK COMPETITION ON THEIR ROUTES TOO AVIATION'S MERCANTILIST SHACKLES NEED TO BE HACKED OFF BEFORE AN INTEGRATING WORLD ECONOMY CAN HIT ITS STRIDE IF THAT IDEA DOESN'T INSPIRE THE CLINTONITES HOW ABOUT INDUSTRIAL POLICY EUROPE'S WINGED WHITE ELEPHANTS ARE CLAMORING FOR PROTECTION BECAUSE THEY CAN'T MATCH THE EFFICIENCY OF AMERICA'S DEREGULATED DYNAMOS JIMMY CARTER MADE THE MISTAKE IN HIS FIRST YEAR OF PUTTING AVIATION NEGOTIATIONS ON AUTO PILOT ONLY TO BE PILLORIED BY CONGRESS AND THE AIRLINES WHEN HIS NEGOTIATORS BROUGHT HOME THE HIDEOUS BERMUDA II TREATY WITH BRITAIN TO HIS GREAT CREDIT MR CARTER SMELLED THE COFFEE AND MADE COMPETITION THE CORNERSTONE OF US POLICY AS LUCK WOULD HAVE IT BERMUDA II IS UP FOR OVERHAUL MR CLINTON HAS AN EXCELLENT OPPORTUNITY TO PUT A COMPETITIVE SPIN ON THE WORLD'S BELLWETHER AVIATION RELATIONSHIP HER MAJESTY'S DIPLOMATS WILL COME LOOKING TO CAPTURE A BIGGER SHARE OF AMERICA'S MOTHERLODE OF PASSENGERS FOR BRITISH AIRWAYS THE AMERICANS HAVE A TOUGHER NUT TO CRACK LONDON'S HEATHROW AIRPORT IS AN IMPORTANT WAY STATION TO OTHER EUROPEAN DESTINATIONS BUT THE BRITISH BY THEMSELVES CAN'T DELIVER LANDING RIGHTS IN THESE COUNTRIES THE US HAS TO DANGLE THE CARROT IN SUCH A WAY AS TO BRING OTHER GOVERNMENTS ALONG SEVERAL SMALLER EUROPEAN CARRIERS FIGURE THEIR SURVIVAL DEPENDS ON EMBRACING COMPETITION RATHER THAN RUNNING AWAY FROM IT NOTABLY THE DUTCH SWISS AUSTRIANS AND SCANDINAVIANS IT SHOULDN'T BE BEYOND THE WIT OF THE CLINTONITES TO FASHION THESE FORCES INTO A COALITION FOR OPEN SKIES BUT TO GET FROM HERE TO THERE SOMEBODY HAS TO BE AWAKE IN THE PILOT'S SEAT 9310120058 931012 BELL ATLANTIC WILL INVEST 104 BILLION FOR 42 OF MEXICAN CELLULAR CONCERN BY DENNIS KNEALE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BELL ATLANTIC CORP PLANS TO ACQUIRE A 42 STAKE IN A MEXICAN CELLULAR COMPANY FOR 104 BILLION IN A PRICEY BID TO HELP BREAK THE MONOPOLY OF THE MUCHMALIGNED NATIONAL PHONE COMPANY BELL ATLANTIC WILL FIRST INVEST 520 MILLION FOR AN INITIAL STAKE OF 23 IN GRUPO IUSACELL SA WITH THE SECOND HALF OF THE DEAL TO COME IN THE NEXT YEAR THAT AMOUNTS TA SURPRISINGLY HIGH VALUATION OF MORE THAN 21 BILLION FOR IUSACELL A MEDIOCRE CELLULAR COMPANY SOME ANALYSTS SAY WITH ONLY 135000 CUSTOMERS 450 MILLION IN DEBT AND PROFIT OF LESS THAN 40 MILLION A YEAR MEANWHILE MOODY'S INVESTORS SERVICE INC PLACED 24 BILLION IN BELL ATLANTIC DEBT UNDER REVIEW FOR POSSIBLE DOWNGRADE AFTER THE PACT WAS ANNOUNCED BELL ATLANTIC IS PURSUING IUSACELL PRONOUNCED YOUSASELL BECAUSE OF CELLULAR'S HUGE POTENTIAL IN MEXICO WHERE WIRED TELEPHONE SERVICE CAN BE FRUSTRATINGLY UNRELIABLE AND AS A GATEWAY INTO OTHER LATIN AMERICAN MARKETS IT ALSO IS DRIVEN BY FUTURE PROSPECTS FOR CHALLENGING THE MONOPOLY HELD BY TELEFONOS DE MEXICO SA IN LOCAL PHONE SERVICE AND ONE DAY IN LONGDISTANCE SERVICE TELMEX LOSES ITS GOVERNMENTBESTOWED MONOPOLY ON LONGDISTANCE SERVICE IN 1996 THERE'S A HUGE MARKET WE CAN ALREADY ADDRESS IN MEXICO AND AS TIME GOES ON IT'S GOING TO GET LARGER FASTER THAN THE POPULATION GROWS LAWRENCE BABBIO CHIEF EXECUTIVE OFFICER OF BELL ATLANTIC'S INTERNATIONAL UNIT SAID IN AN INTERVIEW IUSACELL SPENT 18 MONTHS LOOKING FOR DEEP POCKETS NARROWING THE LIST A FEW MONTHS AGO TO A HANDFUL OF COMPANIES INCLUDING BELL CANADA GTE CORP AND PACIFIC TELESIS GROUP BELL ATLANTIC WAS PICKED INSIDERS SAID BECAUSE OF ITS STRATEGIC AMBITIONS AND ITS WILLINGNESS TO PONY UP MORE THAN 1 BILLION BELL ATLANTIC POSTS ANNUAL EARNINGS GROWTH OF 6 TO 9 ACCORDING TO ANALYSTS AND RELIES ON WIRELESS SERVICES TO CONTRIBUTE THREE PERCENTAGE POINTS OF THAT GROWTH RATE MR BABBIO MAINTAINS THE IUSACELL INVESTMENT WILL ADD AN ADDITIONAL PERCENTAGE POINT TO THE WIRELESS CONTRIBUTION SOME ANALYSTS HAVE THEIR DOUBTS NOTING THAT ACQUIRING THE IUSACELL STAKE IS EXPECTED TO REDUCE NET INCOME AS MUCH AS 87 MILLION NEXT YEAR JACK GRUBMAN OF PAINEWEBBER SAID IT'S QUESTIONABLE WHETHER BELL ATLANTIC CAN EARN BACK EVEN OVER THE REMAINDER OF THE DECADE THE FIRSTYEAR EARNINGS REDUCTION FROM THIS DEAL AS A CELLULAR COMPANY IUSACELL IS SO FAR A MEDIOCRE ENTITY HE SAID BUT IF BY THE LATE 1990S BELL ATLANTIC ENDS UP WITH AN INVESTMENT IN WHAT COULD BE ONE OF THE LEADING COMPETITORS IN LONG DISTANCE THEN MAYBE IT TURNS OUT OK THAT'S THE BET HE SAID BEFORE THE IUSACELL TRANSACTION HE HAD PROJECTED THAT BELL ATLANTIC WOULD EARN 163 BILLION OR 375 A SHARE NEXT YEAR SIGNIFICANT HURDLES HOWEVER STAND IN THE WAY OF THE TWO NEW PARTNERS WHILE MEXICO CITY BOASTS AN ENORMOUS NUMBER OF POTENTIAL CUSTOMERS ABOUT 23 MILLION EVEN BELL ATLANTIC OFFICIALS CONCEDE THAT PERHAPS ONLY 15 TO 20 OF THEM WOULD BE LIKELY PROSPECTS FOR CELLULAR SERVICE THE REST SIMPLY CAN'T AFFORD IT BELL ATLANTIC ALSO CAN'T BE SURE THAT IUSACELL WILL BE ALLOWED INTO THE LONGDISTANCE MARKET ONCE TELMEX LOSES ITS MONOPOLY ON THAT SERVICE A FEW YEARS FROM NOW THE MEXICAN GOVERNMENT HASN'T YET SAID WHAT COURSE IT WILL TAKE AND WHO WILL BE INVITED TO COMPETE STILL BELL ATLANTIC EXECUTIVES SEE IUSACELL'S UPSIDE AS ENORMOUS IUSACELL CURRENTLY HAS ONLY 85000 CELLULAR CUSTOMERS IN MEXICO CITY AND 50000 COMBINED IN THREE OTHER REGIONS WHERE IT IS A PART OWNER OF CELLULAR SYSTEMS THE COMPANY MUST ACQUIRE 100 OWNERSHIP IN THOSE REGIONS BEFORE BELL ATLANTIC WILL DELIVER THE SECOND PAYMENT OF 520 MILLION NEXT YEAR BUT THE BASE OF POTENTIAL CUSTOMERS EXCEEDS 60 MILLION FOR ALL REGIONS COMBINED IN ADDITION IUSACELL HAS LICENSES TO COMPETE WITH TELMEX IN BASIC PHONE SERVICE BY BUILDING A NATIONWIDE WIRELESS NETWORK THAT WILL OPERATE ON A DIFFERENT FREQUENCY FROM THE CELLULAR BUSINESS USING THE CASH INFUSION FROM BELL ATLANTIC IT HOPES TO BEGIN SERVICE IN PART OF THE COUNTRY A YEAR FROM NOW CELLULAR PHONE SERVICE HAS REACHED FAR LESS THAN 1 OF ITS POTENTIAL CUSTOMERS COMPARED WITH 4 IN THE US AFTER MORE THAN A DECADE OF BUSINESS SAID GUILLERMO HEREDIA CHIEF OPERATING OFFICER OF IUSACELL AND MEXICO STILL HAS ONLY ABOUT EIGHT PHONE LINES FOR EVERY 100 PEOPLE COMPARED WITH 60 PER 100 IN THE US AND 87 IN CANADA IUSACELL OWNED BY MEXICO'S PERALTA FAMILY AND RUN BY VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER CARLOS PERALTA IS LOOKING TO RAISE EVEN MORE CAPITAL FOR THE EXPANSION THE COMPANY SAID IT IS SERIOUSLY CONSIDERING SELLING A 10 STAKE TO THE PUBLIC WITH AT LEAST PART OF IT POSSIBLY SLATED FOR THE BIG BOARD THAT WOULD BRING IN AN EXTRA 210 MILLION OR MORE IF BELL ATLANTIC'S VALUATION OF IUSACELL HOLDS UP 9310120057 931012 WHO'S NEWS BROWNFORMAN NAMES FORMER P&G OFFICIAL TO HEAD LENOX UNIT LOUISVILLE KY BROWNFORMAN CORP SAID MALCOLM JOZOFF 54 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE CONSUMER PRODUCT COMPANY'S LENOX INC UNIT EARLIER THIS YEAR MR JOZOFF A FORMER TOP EXECUTIVE AT PROCTER & GAMBLE CO AGREED TO PAY A PENALTY TO SETTLE AN INSIDERTRADING COMPLAINT BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION THE SEC CLAIMED IN JULY THAT MR JOZOFF WHO WAS THE HEAD OF P&G'S HEALTHCARE DIVISION GAVE INSIDE INFORMATION TO ELLEN JANE MILLMAN THEN A BUSINESS DEVELOPMENT MANAGER AT STAR BANC CORP DURING P&G'S 1989 PURCHASE OF NOXELL CORP MS MILLMAN ALSO AGREED TO PAY A PENALTY UNDER THE AGREEMENT NEITHER ADMITTED WRONGDOING ALTHOUGH BOTH AGREED NOT TO VIOLATE SECURITIES LAWS IN THE FUTURE MR JOZOFF WHO WAS A PRIMARY NEGOTIATOR OF P&G'S 13 BILLION PURCHASE OF NOXELL LEFT P&G IN JUNE 1992 TO PURSUE OTHER INTERESTS THE COMPANY SAID AT THE TIME IN NAMING MR JOZOFF TO THE TOP POST AT LENOX WHICH MAKES CHINA CRYSTAL SILVER AND PEWTER PRODUCTS AND LUGGAGE BROWNFORMAN CITED HIS WEALTH OF MARKETING EXPERIENCE AND DEMONSTRATED ABILITIES AS A LEADER AND STRATEGIST BROWNFORMAN ALSO MAKES JACK DANIELS CANADIAN MIST AND SOUTHERN COMFORT LIQUORS ASKED ABOUT THE SEC PENALTY A SPOKESMAN FOR BROWNFORMAN SAID THE COMPANY BELIEVES THE SEC SETTLEMENT RESOLVED THE ISSUE WE ARE CONFIDENT THAT MAL JOZOFF IS THE RIGHT PERSON TO LEAD LENOX 9310120056 931012 BUSINESS BRIEF GENERAL COMPUTER CORP PRESCRIPTIONPROCESSING PACT WITH WALMART IS SIGNED GENERAL COMPUTER CORP SAID IT SIGNED A NONEXCLUSIVE AGREEMENT WITH WALMART STORES INC TO PROVIDE ELECTRONIC INTERCHANGE SERVICE IN THE PROCESSING OF PRESCRIPTION CLAIMS FOR THIRDPARTY REIMBURSEMENT THE COMPANY WILL PROCESS PRESCRIPTION CLAIMS FROM THE 1700 WALMART PHARMACIES TO VARIOUS THIRD PARTIES SUCH AS INSURANCE COMPANIES THROUGHOUT THE NATION AND ALSO WILL SERVE AS A HOST PROCESSOR FOR WALMART PRESCRIPTIONS THE TWINSBURG OHIO COMPUTER COMPANY WHICH WILL EARN A FEE FOR EACH TRANSACTION IT PROCESSES DECLINED TO ESTIMATE THE VALUE OF THE CONTRACT IT REPORTED SALES OF 15 MILLION FOR FISCAL 1993 ENDED MAY 31 9310120055 931012 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN BEIJING RENEWED ITS WARNING ON STATE SECRETS SAYING DISCLOSURES TO FOREIGNERS OF INFORMATION ABOUT THE ECONOMY POLITICS AND DEFENSE COULD HURT ECONOMIC REFORMS CHINA RECENTLY HAS ARRESTED AND SENTENCED HONG KONG AND CHINESE JOURNALISTS ON ESPIONAGE CHARGES MEANWHILE 62 OF BEIJING SHANGHAI AND TIANJIN RESIDENTS POLLED SAID INFLATION WAS A SERIOUS PROBLEM AND 75 SAID PRICES WERE CLIMBING FASTER THAN INCOMES CALLING INTO QUESTION GOVERNMENT CLAIMS OF RISING LIVING STANDARDS URBAN CONSUMER PRICES IN AUGUST ROSE 22 FROM A YEAR EARLIER IN JULY CHINA TIGHTENED RUNAWAY CREDIT EXPANSION TO BRAKE INFLATION AND COOL THE ECONOMY WHICH GALLOPED AT A 14 ANNUAL RATE IN THE FIRST HALF THE STATERUN AGRICULTURAL BANK OF CHINA THIS YEAR HAS LENT 927 BILLION TO RURAL ENTERPRISES RUN BY VILLAGE GOVERNMENTS OR COLLECTIVES OUTPUT AT THESE ENTERPRISES IS EXPECTED TO JUMP 50 TO 472 BILLION IN 1993 FROM LAST YEAR WHEN THEY ACCOUNTED FOR A THIRD OF CHINA'S INDUSTRIAL PRODUCTION ALSO BEIJING CLAIMED SUCCESS IN CUTTING EXCESSIVE LOCAL TAXES ON FARMERS THAT SPARKED SUMMER RIOTS HONG KONG WILL OPEN WHAT IT BILLS AS THE WORLD'S LONGEST ESCALATOR FOR AN EXPERIMENTAL RUN FRIDAY EIGHT MONTHS BEHIND SCHEDULE THE 20 ESCALATORS AND THREE MOVING SIDEWALKS GLIDE 800 YARDS BETWEEN OFFICE AND APARTMENT BUILDINGS LINKING THE CENTRAL BUSINESS DISTRICT TO THE TONY MID LEVELS HILLSIDE SUBURB A ONEWAY COMMUTE TAKES ABOUT 20 MINUTES THE ESCALATOR WAS BUILT TO RELIEVE CHRONIC TRAFFIC JAMS IN THE NARROW TWISTING STREETS OF HONG KONG WHERE THE POPULATION HAS GROWN RAPIDLY MACAO HAS ATTRACTED OPERATIONS OF AT LEAST 200 CHINESE COMPANIES THAT CONTROL ASSETS VALUED AT MORE THAN 51 BILLION PORTUGAL'S LUSA NEWS AGENCY SAID MACAOCHINESE ENTERPRISES ASSOCIATION DATA SHOW THAT CHINESE ENTERPRISES HOLD 50 OF THE PORTUGUESE ENCLAVE'S BANKING AND FINANCIAL SECTOR 25 OF COMMERCE AND TRADING 40 OF CONSTRUCTION AND REAL ESTATE AND 45 OF TOURISM EXCLUDING GAMBLING CONTROL OF MACAO REVERTS TO CHINA IN 1999 MACAOCHINA TRADE INCREASED FOURFOLD TO 400 MILLION BETWEEN 1980 AND 1992 THE VALUE OF FOREIGN INVESTMENT PROJECTS APPROVED BY INDONESIA IN THIS YEAR'S FIRST NINE MONTHS SLUMPED 30 TO 55 BILLION FROM A YEAR EARLIER THE TOTAL NUMBER OF PROJECTS DECLINED 36 TO 199 THE GOVERNMENT ATTRIBUTED THE DROPS TO RECESSION IN DEVELOPED COUNTRIES AND TO INADEQUATE INFRASTRUCTURE IN INDONESIA THE COMPLETION RATE OF APPROVED PROJECTS IS RUNNING AT 73 DOMESTIC INVESTMENT PROJECTS FELL 42 TO 295 AND THEIR VALUE DROPPED 13 TO 96 BILLION IN THE LATEST PERIOD AS A RESULT OF THE GOVERNMENT'S TIGHTMONEY POLICY THAT PUSHED LENDING RATES UP TO PREVENT ECONOMIC OVERHEATING THE MAYFLOWER HOTEL IN BANGKOK WAS ORDERED CLOSED BECAUSE OF ILLEGAL CONSTRUCTION AND OPERATION CITY AUTHORITIES SAID THE ACTION SAID TO BE THE FIRST OF ITS KIND IN THAILAND CAME TWO MONTHS AFTER 137 PEOPLE DIED WHEN A PROVINCIAL HOTEL COLLAPSED AFTER ADDITIONS WERE BUILT THE 110ROOM MAYFLOWER WAS OPERATED AS A HOTEL DESPITE BEING REGISTERED AS AN APARTMENT BUILDING A FOURSTORY EXTENSION WAS ILLEGALLY ADDED TO THE MAIN 10STORY STRUCTURE STRONG GROWTH IN DANISH EXPORTS TO EASTERN EUROPEAN COUNTRIES IS EXPECTED TO CONTINUE THE CONFEDERATION OF DANISH INDUSTRIES SAID LAST YEAR DENMARK HAD A TRADE SURPLUS WITH EASTERN EUROPE OF 1077 MILLION COMPARED WITH A DEFICIT OF 2153 MILLION IN 1985 THE INDUSTRIAL GROUP SAID THE OUTLOOK IS BRIGHT FOR DANISH SHIPMENTS TO THE REGION PARTICULARLY AS MARKET REFORMS ARE COMPLETED IN POLAND THE CZECH REPUBLIC SLOVAKIA AND HUNGARY THE NEED TO CREATE JOBS WILL PLAY AN INCREASINGLY IMPORTANT ROLE IN EUROPEAN COMMUNITY POLICY ON COMPETITION CASES KAREL VAN MIERT THE TRADE BLOC'S COMPETITION COMMISSIONER TOLD THE INTERNATIONAL BAR ASSOCIATION IN NEW ORLEANS THE EC COMMISSION MAY APPROVE COMPETITIONRESTRICTING AGREEMENTS BETWEEN BUSINESSES ONLY IF SUCH DEALS CONTRIBUTE TO IMPROVED PRODUCTION AND ASSURE CONSUMERS A FAIR SHARE OF THE COST SAVINGS BUT IN CASES THAT AREN'T CLEARCUT MR VAN MIERT SAID THE COMMISSION MAY CONSIDER EFFECTS ON JOBS TO SAVE DEALS THAT OTHERWISE WOULD BE REJECTED THE EC'S PREOCCUPATION WITH ITS UNEMPLOYMENT RATE WHICH IS EXPECTED TO EXCEED 12 NEXT YEAR COULD BE A CRUCIAL FACTOR IN RECASTING ITS COMPETITION POLICY AMID A STUBBORN RECESSION MR VAN MIERT'S REMARKS SIGNAL A SHIFT IN THE STRICT MARKETORIENTED APPROACH ON ANTITRUST POLICY GIVING ECONOMIC AND SOCIAL FACTORS FAR GREATER PROMINENCE RAMON BLANCO A 60YEAROLD VENEZUELAN VIOLIN MAKER HAS BECOME THE OLDEST CLIMBER TO REACH THE SUMMIT OF MOUNT EVEREST THAT RECORD HAD BEEN HELD SINCE 1985 BY DICK BASS AN AMERICAN WHO WAS THEN 55 THE CZECH REPUBLIC'S CENTRAL BANK EACH DAY IS BURNING 20 TONS OF BANKNOTES ISSUED BY THE CZECHOSLOVAK FEDERATION WHICH DISSOLVED JAN 1 A TOTAL OF 52 BILLION OF THE CURRENCY EITHER WILL GO UP IN SMOKE OR BE SOLD FOR USE IN FUEL BRIQUETTES AND BUILDING MATERIALS OLD CZECHOSLOVAK COINS ARE BEING MELTED INTO ALUMINUM AND COPPER FOR EXPORT 9310120054 931012 BUSINESS BRIEF WHITTAKER CORP A PAYMENT OF 35 MILLION IS PLANNED TO SETTLE LAWSUIT WHITTAKER CORP SAID IT AGREED TO PAY 35 MILLION TO UNR INDUSTRIES INC TO SETTLE A PATENTINFRINGEMENT LAWSUIT INVOLVING A FORMER WHITTAKER DIVISION THE SETTLEMENT CAME AFTER A FEDERAL JURY IN CHARLOTTE NC RULED FRIDAY THAT A SHOPPING CART MADE BY WHITTAKER'S FORMER TECHNIBILT DIVISION INFRINGED A UNR PATENT WHITTAKER SOLD THE DIVISION IN 1990 UNR BASED IN CHICAGO IS A STEEL FABRICATOR THAT MAKES SHOPPING CARTS AMONG OTHER PRODUCTS WHITTAKER BASED IN LOS ANGELES SAID THE SETTLEMENT WILL RESULT IN A CHARGE OF 21 MILLION OR 22 CENTS A SHARE IN THE CURRENT FOURTH QUARTER ENDING OCT 31 THE AEROSPACE CONCERN ALSO SAID IT RESTATED ITS RESULTS FOR THE FIRST QUARTER ENDED JAN 31 AFTER ADOPTING A CHANGE IN ACCOUNTING FOR INCOME TAXES THE CHANGE INCREASED NET INCOME BY 15 MILLION OR 16 CENTS A SHARE RESTATED NET INCOME WAS 31 MILLION OR 33 CENTS A SHARE 9310120053 931012 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 INDORAYON 110 MILLION OF 9125 SENIOR NOTES DUE 2000 AT PAR THROUGH CREDIT SUISSE FIRST BOSTON ACCORDING TO THE COMPANY ASFINAG AUSTRIAAGENCY 350 MILLION DUTCH GUILDERS OF 6125 EUROBONDS DUE NOV 3 2003 AT ISSUE PRICE 10085 VIA ABN AMRO BANK NV REOFFERED AT 1001 TO YIELD 611 A SPREAD OF 216 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN GUARANTOR AUSTRIA FEES ONE FISONS PLC UK 100 MILLION OF 8 EUROBONDS DUE NOV 4 2003 AT ISSUE PRICE 100285 VIA JP MORGAN SECURITIES LTD REOFFERED AT 98735 TO YIELD 819 A MARGIN OF 120 BASIS POINTS OVER COMPARABLE GILT FEES TWO FOKKER NV NETHERLANDS 500 MILLION MARKS OF 625 EUROBONDS DUE NOV 4 1998 AT ISSUE PRICE 10175 VIA COMMERZBANK AG BONDS YIELD 643 AFTER DEDUCTING FULL FEES OF 25 OWNERSHIP CLAUSE INVOLVING DEUTSCHE AEROSPACE AND FOKKER HOLDINGS TO PROVIDE GUARANTOR GENOSSENSCHAFTSZENTRALBANK STUTTGART AG GERMANY 150 MILLION MARKS OF 6125 EUROBONDS DUE NOV 11 2003 AT ISSUE PRICE 102 VIA TRINKAUS & BURKHARDT KGAA BONDHOLDERS HAVE OPTION TO CONVERT BONDS INTO 675 BONDS OF SAME MATURITY AT CONVERSION PRICE TO BE PUBLISHED OCT 15 1996 BASED ON AVERAGE OFFICIAL FIXING PRICE OF 65 BUND DUE 2003 ON FRANKFURT STOCK EXCHANGE FROM OCT 9 TO 11 1996 INCLUSIVE CONVERTIBLE FROM OCT 16 1996 TO NOV 5 1996 CONVERSION EFFECTIVE NOV 11 1996 FEES 25 LESS 0125 FOR LEAD MANAGER HENDERSON CAPITAL INTERNATIONAL LTD HONG KONG PARENT 400 MILLION OF MANDATORILY CONVERTIBLE EUROBONDS AT ISSUE PRICE PAR VIA MORGAN STANLEY INTERNATIONAL WARDLEY CORPORATE FINANCIAL LTD AND CREDIT SUISSE FIRST BOSTON LTD COUPON 4 FIRST YEAR 45 SECOND YEAR 5 THIRD YEAR BONDS CONVERTIBLE INTO ORDINARY SHARES OF HENDERSON CHINA WITHIN 12 MONTHS AFTER INITIAL PUBLIC OFFERING OF HENDERSON CHINA SHARES AFTER 12 MONTHS REMAINING BONDS WILL BE MANDATORILY CONVERTED CONVERSION PRICE AT INDICATED DISCOUNT OF BETWEEN 5 AND 7 OF INITIAL PUBLIC OFFERING SHARE PRICE ONCE INITIAL PUBLIC OFFERING OCCURS COUPON ON BONDS SET AT 5 IF INITIAL PUBLIC OFFERING DOESN'T OCCUR BY OCTOBER 1996 BONDS WILL BE REDEEMED AT 107 TO YIELD 663 GUARANTOR HENDERSON LAND DEVELOPMENT CO FEES 25 INTEREST PAYABLE SEMIANNUALLY NATIONAL BANK OF HUNGARY HUNGARY 150 MILLION SWISS FRANCS OF 675 PUBLIC BONDS DUE DEC 3 1999 PRICED AT 102 VIA UNION BANK OF SWITZERLAND FEES 225 WESTDEUTSCHE LANDESBANK GIROZENTRALE GERMANY 150 BILLION LIRE OF 8 EUROBONDS DUE OCT 27 1998 AT ISSUE PRICE 101825 VIA ISTITUTO BANCARIO SAN PAOLO DI TORINO SPA BONDS YIELD 801 AFTER DEDUCTING FULL FEES OF 1875 9310120052 931012 ENERGY BOON FOR DRIVERS IS PUMPED OUT AS REFINERS REALLY GET CRACKING BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL TINKERING BY OIL REFINERS FACED WITH STRICTER ENVIROMENTAL LAWS IS YIELDING A CONSUMER WINDFALL MORE GASOLINE IN JUST THE PAST YEAR US REFINERS HAVE BEEN ABLE TO PRODUCE AN EXTRA 350000 BARRELS OF GASOLINE DAILY FOR THE US MARKET NEARLY 5 OF THE NATION'S DEMAND SO FOR NOW CONSUMERS CAN EXPECT PLENTIFUL SUPPLIES AND SLOWER RISING PRICES OVER THE NEXT FEW YEARS GROWING SUPPLIES HAVE SLOWED GASOLINE PRICE INCREASES SAYS JAMES MURCHIE OIL ANALYST FOR SANFORD C BERNSTEIN & CO FOR EXAMPLE GASOLINE PRICES DURING THE SUMMER DRIVING SEASON DIDN'T SPIKE AS THEY HAVE IN PAST YEARS BECAUSE THE MARKET WAS AT TIMES OVERSUPPLIED BY AS MUCH AS 100000 BARRELS A DAY SAYS KEN MILLER OF PURVIN & GERTZ A REFININGCONSULTING FIRM BASED IN HOUSTON ALTHOUGH GASOLINE PRICES ARE NEVERTHELESS RISING BECAUSE OF INCREASED FEDERAL AND STATE TAXES AS WELL AS HIGHER MANUFACTURING COSTS CAUSED BY ENVIRONMENTAL LAWS UPGRADING BY REFINERS KEEPS PRICES LOWER THAN THEY WOULD OTHERWISE BE THIS SUDDEN GUSH OF GASOLINE IS THE RESULT OF BASIC RETOOLING PROMPTED BY THE OCT 1 FEDERAL DEADLINE CALLING FOR THE REMOVAL OF SULFUR FROM DIESEL FUEL ACCORDING TO A SURVEY BY PURVIN & GERTZ REFINING HAS BEEN A DIFFICULT BUSINESS FREQUENTLY UNPROFITABLE IN RECENT YEARS SO IN AN EFFORT TO REGAIN SOME OF THE MONEY SPENT COMPLYING WITH ENVIRONMENTAL LAWS REFINERS HAVE TRIED TO MAXIMIZE OUTPUT OF GASOLINE THEIR MOST PROFITABLE PRODUCT AND AS LONG AS THEY HAD TO REDO SOME OPERATIONS FOR ENVIRONMENTAL REASONS THEY DECIDED TO REVAMP THEIR REFINERIES TO SQUEEZE OUT EVERY POSSIBLE DROP OF GASOLINE REFINERS HAVE BEEN UPGRADING TO MAXIMIZE PROFITS SAYS LAWRENCE GOLDSTEIN PRESIDENT OF THE PETROLEUM INDUSTRY RESEARCH FOUNDATION FOR SOME REFINERS UPGRADING HAS MEANT ADDING SOME MAJOR EQUIPMENT BUT MANY OF THE CHANGES HAVE INVOLVED SIMPLE DEBOTTLENECKING THE WORK WAS DONE IN SMALL INCREMENTS PROVIDING REFINERS WITH A THOUSAND BARRELS HERE A THOUSAND BARRELS THERE SAYS MR MILLER EVERYBODY DID A LITTLE WHICH ADDED UP TO A CHUNK OF GASOLINE DURING THE LAST YEAR FOR INSTANCE TOSCO CORP HAS BEEN ABLE TO PUT OUT 15000 BARRELS MORE GASOLINE DAILY COMPARED WITH THREE YEARS AGO JUST BY FOOLING AROUND WITH THE REFINERY'S INNARDS SAYS CHAIRMAN THOMAS D O'MALLEY AND ASHLAND OIL INC INCREASED ITS GASOLINE YIELD BY 8 TO 10 JUST LAST WEEK BY ADDING NEW EQUIPMENT MARC SCHILLINGER OF ENSR CONSULTING & ENGINEERING CAMARILLO CALIF SAYS JUST THE ADDITION OF HEATING UNITS AT CERTAIN REFINERY LOCATIONS CAN LET MORE CRUDE OIL TYPICALLY HEATED AS PART OF THE REFINING PROCESS MOVE THROUGH THE FACILITY ALTHOUGH THIS PAST YEAR HAS SEEN MORE SIMPLE UPGRADING THAN IN RECENT YEARS GASOLINE PRODUCTION IS EXPECTED TO CONTINUE GROWING AS OTHER ENVIRONMENTAL REGULATIONS MANDATED BY FEDERAL AND STATE AUTHORITIES COME INTO PLAY MR MILLER SAYS OUTPUT OVER THE NEXT FEW YEARS COULD GROW TO NEARLY EIGHT MILLION BARRELS DAILY INCLUDING THE ADDITION OF ENVIRONMENTALLY MANDATED OXYGENATES TO THE GASOLINE POOL AS THE UPGRADING AND RETOOLING OF THIS PAST YEAR CONTINUES US PRODUCTION HAS BEEN RUNNING FROM SEVEN MILLION TO 75 MILLION BARRELS A DAY THE HIGHER END DEPENDING ON SEASONAL AND HOLIDAY DRIVING MEANWHILE DEMAND HAS BEEN ABOUT 72 MILLION BARRELS DAILY 9310120051 931012 MARKETSCAN PORTIONS AND PACKAGES GROW BIGGER AND BIGGER BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL IT'S A BIG TREND IN THE FOOD BUSINESS LITERALLY JUMBO PRODUCTS ARE BRINGING SUCCESS TO MAKERS OF SUCH ITEMS AS HOT DOGS PIZZAS ENGLISH MUFFINS FROZEN DINNERS BEER AND BISCUITS AS ONE CASE IN POINT PILLSBURY CO'S GRANDS BISCUITS THAT ARE 40 LARGER THAN OTHER PILLSBURY OFFERINGS HAVE HIT THE SPOT WITH CONSUMERS BISCUIT LOVERS WOLFED DOWN MORE THAN 100 MILLION CANS MAKING IT THE MOST SUCCESSFUL NEW PRODUCT IN THE 126YEAR HISTORY OF PILLSBURY A UNIT OF GRAND METROPOLITAN PLC MARKETING EXPERTS SAY GIGANTIC PRODUCTS GIVE CONSUMERS A BREAK FROM WATCHING THEIR FAT AND CALORIE INTAKE IT'S A GLUTTONOUS RESPONSE TO SELFIMPOSED STARVATION SAYS DOUG HALL A NEW PRODUCTS CONSULTANT WITH RICHARD SAUNDERS INTERNATIONAL IN CINCINNATI THE BIG TREND BIG TASTE BIG FAT BIG PORTIONS IS A NATURAL COUNTERBALANCE TO THE GOODFORYOU PRESSURE IT'S A REBELLION AGREES RON PAUL PRESIDENT OF THE CHICAGO FOOD CONSULTING FIRM TECHNOMIC INC PEOPLE MADE A STAB AT EATING HEALTHIER BUT THE AVERAGE AMERICAN IS HEAVIER AND EATING MORE THAN FIVE YEARS AGO HE SAYS WE ARE IN A PILEITON MODE THE BIG TREND INCLUDES NOT ONLY PORTIONS BUT PACKAGES FROM THE MARKETERS' STANDPOINT AN OVERSIZE PACKAGE IS A WAY TO DRAW ATTENTION TO A NEW PRODUCT THE MAKERS OF ARIZONA ICED TEA USED A TOWERING 24OUNCE CAN TO MAKE A SPLASH AMONG THE HUNDREDS OF NEW BEVERAGES INTRODUCED LAST YEAR THAT CAN REALLY OPENED A LOT OF DOORS FOR US SAYS MICHAEL KUTNER OPERATIONS DIRECTOR OF HORNELL BREWING CO LIKE MANY FOOD TRENDS THE FOCUS ON SIZE BEGAN IN THE KITCHENS OF FASTFOOD CHAINS PEPSICO INC'S TACO BELL UNIT WAS ONE OF THE FIRST CONSUMERGOODS COMPANIES TO IDENTIFY AND AGGRESSIVELY RESPOND TO CONSUMER FRUSTRATION OVER CONSTANTLY RISING PRICES AT PEPSICO'S PIZZA HUT UNIT SALES OF BIG FOOT A 2FOOTBY1FOOT PIZZA SLAB ARE EXPECTED TO REACH 1 BILLION THIS YEAR MAKING IT THE MOST POPULAR PRODUCT EVER FOR THE CHAIN THE FOCUS IS SHIFTING AWAY FROM PRICE ONLY AND MORE TO QUALITY AND SIZE SAYS MICHAEL MUELLER AN ANALYST WITH MONTGOMERY SECURITIES EVEN IF THEY PAY MORE CONSUMERS FEEL LIKE THEY ARE GETTING A BETTER DEAL WHEN THEY BUY A BIGGER SANDWICH CHANGING EATING PREFERENCES HAVE MADE NOUVELLE CUISINE AND ITS METICULOUSLY SCULPTED MINIATURE PORTIONS PASSE THAT TYPE OF CUISINE HAS GONE AWAY SAYS JOSEPH M WELLS III EXECUTIVE VICE PRESIDENT OF HOMER LAUGHLIN CHINA CO ONE OF THE NATION'S LARGEST SUPPLIERS OF CHINA TO THE RESTAURANT TRADE PEOPLE ARE DEMANDING MORE FOR THEIR MONEY HE SAYS AS A RESULT HOMER LAUGHLIN HAS HAD TROUBLE KEEPING UP WITH A FLOOD OF ORDERS FROM RESTAURANTS FOR 12 1/2INCH DINNER PLATES WHICH ARE REPLACING 10 1/2INCH PLATES AS THE NEW STANDARD IN RESTAURANTS PILLSBURY EXECUTIVES FREELY ADMIT THEY GOT THE IDEA FOR THEIR BIGGER BISCUITS AFTER WATCHING CUSTOMERS DEVOUR OVERSIZE BREAKFAST BISCUITS AT FASTFOOD RESTAURANTS SINCE GRANDS WERE INTRODUCED NATIONALLY LAST YEAR THEY HAVE REVERSED 15 YEARS OF FLAT TO DECLINING SALES IN THE BISCUIT CATEGORY FOR THE 52 WEEKS THAT ENDED AUG 15 REFRIGERATEDBISCUIT SALES ROSE 54 TO 380 MILLION ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE GRANDS SALES SOARED 51 TO 1026 MILLION IN THE SAME TIME PERIOD THE APPEAL OF THE BIGGER BISCUIT IS STRAIGHTFORWARD IT TASTES GOOD AND IT FILLS YOU UP SAYS CRAIG EVANICH VICE PRESIDENT OF PILLSBURY BRANDS IN MINNEAPOLIS REALIZING THEY WERE ONTO SOMETHING BIG PILLSBURY'S NEWPRODUCT SAVANTS INCREASED THE SIZE OF ITS SWEET ROLLS LAST YEAR BY 30 ALSO SPARKING A JUMP IN SALES IN A DECLINING CATEGORY PILLSBURY PRODUCT MANAGERS ARE NOW SCANNING THEIR PRODUCT LINES FOR OTHER ENLARGEMENT CANDIDATES MARKETERS ARE COUNTING ON GARGANTUAN SIZES TO PEP UP SALES OF SOME FAMILIAR BRANDS FOR INSTANCE THE NOVELTY OF HEINEKEN'S 216OUNCE KINGSIZE BOTTLE GAVE THE BRAND FRESH APPEAL AND BEER DRINKERS SWILLED DOWN 24 MILLION BOTTLES IN ITS FIRST YEAR WHILE HEINEKEN SALES HAD BEEN GROWING STEADILY BEER INDUSTRY OBSERVERS ESTIMATE THAT THE BIGBOTTLE GIMMICK INCREASED THE BRAND'S SALES BY AN ADDITIONAL 5 THIS YEAR PACKAGING CAN BECOME COMMONPLACE IN THE EYES OF CONSUMERS SAYS PHILIP VAN MUNCHING OF VAN MUNCHING & CO THE DUTCH BREWER'S US DISTRIBUTOR TO GIVE ITS 10YEAROLD AMSTEL BRAND A BOOST THE COMPANY PLANS TO INTRODUCE A LARGERSIZED BOTTLE NEXT MONTH SB THOMAS INC THE DOMINANT ENGLISH MUFFIN MAKER WAS HAVING TROUBLE INCREASING SALES UNTIL IT INTRODUCED A JUMBO MUFFIN LAST YEAR IN A BID FOR ITS PRODUCT TO BECOME THE BREAD OF CHOICE FOR MINIPIZZAS AND SANDWICHES THE CPC INTERNATIONAL INC UNIT INCREASED THE SIZE OF THE MUFFIN BY 63 IT'S TARGETING NEW USAGE SITUATIONS AS OPPOSED TO BEING A BETTER BREAKFAST MUFFIN SAYS DONALD BERMAN VICE PRESIDENT OF BUSINESS MANAGEMENT FOR BEST FOODS BAKING GROUP A UNIT OF CPC ALTHOUGH NOT YET NATIONAL THE MAMMOTH MUFFIN IS CONSIDERED A HUGE SUCCESS SOME COMPANIES ARE USING BIGGER SIZES TO ENTICE NEW CONSUMERS TO TRY A FAMILIAR PRODUCT OSCAR MAYER'S BIG & EASY HOT DOGS ARE DESIGNED TO APPEAL TO ADULTS INSTEAD OF THE KIDS AND TEENS WHO EAT MOST HOT DOGS OSCAR MAYER A UNIT OF PHILIP MORRIS COS FOUND THE PERFECTLY PROPORTIONED PITCHMAN TO HAWK THE BIGGER DOGS HEAVYWEIGHT GEORGE FOREMAN THE BIGGERISBETTER MOTIF HAS EVEN GIVEN NEW LIFE TO SOME OLDER PRODUCTS SWANSON'S HUNGRYMAN FROZEN DINNERS ALWAYS KNOWN FOR THEIR BIG PORTIONS ARE HAVING ONE OF THEIR BEST YEARS IN THE BRAND'S 20YEAR HISTORY CAMPBELL'S RIVAL CONAGRA INC ADDED EXTRAPORTION OFFERINGS TO ITS HEALTHY CHOICE LINES IN LATE 1991 SALES OF THE LARGER CONAGRA PRODUCTS INCREASED 71 FOR THE YEAR ENDED AUG 15 TO 42 MILLION BUT SIZE ALONE DOESN'T GUARANTEE GOOD RESULTS LENDERS'S OVERSIZED BAGELS ARE PROVING TOO MUCH OF A MOUTHFUL FOR NOSHERS WITH SALES DROPPING BY 6 FOR THE 52WEEK PERIOD AND APPARENTLY PEOPLE HAVE A LIMITED APPETITE FOR POT PIES WHILE SALES OF SWANSON'S REGULARSIZE POT PIES ARE BOOMING SALES OF JUMBO HUNGRYMAN POT PIES DROPPED BY 65 IN THE PAST YEAR 9310120050 931012 MARKETING & MEDIA DELRINA DEPLOYING ITS OWN SQUADRON OF FLYING TOASTERS TO SKIRT BAN IN SOFTWARE SUIT ITS SCREENSAVING APPLIANCE WILL BE PROPELLERDRIVEN BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL BLOODIED IN THE COURTROOM BUT UNBOWED TORONTOBASED DELRINA CORP HAS A PLAN TO GET AROUND AN INJUNCTION AGAINST SELLING SOFTWARE THAT MOCKS ITS BIGGEST RIVAL INSTEAD OF SHOOTING DOWN WINGED TOASTERS OF THE SORT USED BY BERKELEY SYSTEMS INC A CARTOON CHARACTER IN A NEW DELRINA PROGRAM WILL BLAST PROPELLERFLOWN TOASTERS WE PROMISED CUSTOMERS TO DELIVER NEW AND MORE EXPLOSIVE MATERIAL IN THIS COURT EDITION SAID JOHN MATSUO GENERAL MANAGER OF DELRINA'S CONSUMER SOFTWARE DIVISION IN A NEWS RELEASE ISSUED YESTERDAY THIS CENSORED TOASTER' VERSION SHOULD FLY OFF THE SHELF DELRINA OPTED TO CHANGE THE TOASTERS IN ITS OPUS 'N BILL SCREENSAVER PROGRAM AFTER BERKELEY SYSTEMS WON A PRELIMINARY INJUNCTION IN A COPYRIGHTINFRINGEMENT SUIT AGAINST DELRINA IN FEDERAL COURT IN SAN FRANCISCO IN THE ORIGINAL VERSION THE OPUS CHARACTER FROM CARTOONIST BERKELEY BREATHED'S OUTLAND COMIC STRIP FIRED A SHOTGUN AT FLYING TOASTERS THAT RESEMBLED THOSE FOUND IN BERKELEY SYSTEMS' AFTER DARK PROGRAM US DISTRICT JUDGE EUGENE LYNCH REJECTED DELRINA'S CONTENTION THAT ITS PROGRAM CONSTITUTED A FORM OF PARODY THAT SHOULD BE PROTECTED BY THE FIRST AMENDMENT I THINK JUDGE LYNCH HAS A SOFT SPOT IN HIS HEART FOR AIRBORNE KITCHEN WILDLIFE MR BREATHED SAID IN DELRINA'S STATEMENT DELRINA SAID IT WOULD ABIDE BY THE VERDICT FOR SEVERAL REASONS INCLUDING THE DECLINING FLYING TOASTER POPULATION IN THE UNITED STATES AND CANADA AND THE NEED TO IMPROVE CANADIANAMERICAN RELATIONS FLYING TOASTERS ARE KNOWN TO WINTER IN THE TORONTO AREA OF CANADA AND FLY TO THE BERKELEY CALIF AREA OF THE UNITED STATES IN THE SUMMER TO LAY EGGS BERKELEY SYSTEMS WELCOMES THE CHANGE BUT THINKS DELRINA COULD DO BETTER I JUST WISH THEY WOULD CHOOSE THEIR OWN APPLIANCE SAID JOAN BLADES VICE PRESIDENT OF MARKETING AT THE BERKELEY CALIF COMPANY I WOULDN'T MIND AT ALL IF THEY DECIDED TO DO A FLYING BLENDER 9310120049 931012 FOREIGN EXCHANGE DOLLAR ENDS HIGHER AGAINST MARK YEN AS HOLIDAYS KEEP TRADING TO MINIMUM BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR WAS HIGHER AGAINST THE MARK AND YEN IN VERY QUIET TRADING YESTERDAY AS HOLIDAYS IN MAJOR CURRENCY TRADING CENTERS KEPT ACTION TO A MINIMUM BUT THE MARK ROSE AGAINST MOST OF ITS COUNTERPARTS IN EUROPE AS SOME PLAYERS BET THAT A GERMAN COURT DECISION DUE TODAY COULD THROW A NEW ROADBLOCK IN THE PATH OF EUROPEAN ECONOMIC AND MONETARY UNION LATE MONDAY IN NEW YORK THE DOLLAR WAS QUOTED AT 16048 MARKS UP FROM 16025 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10625 YEN UP FROM 10590 YEN STERLING WAS TRADING AT 15335 DOWN FROM 15375 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10593 YEN AND AT 15995 MARKS TRADERS SAID THAT ACTION IN THE CURRENCY MARKETS MONDAY WAS SPARSE THROUGHOUT THE DAY WITH MARKETS IN JAPAN AND CANADA CLOSED FOR HOLIDAYS AND MANY USBASED PLAYERS TAKING THE COLUMBUS DAY HOLIDAY OFF AS WELL AND FURTHER SLOWING TRADING DEALERS SAID WAS UNCERTAINTY AHEAD OF A CRUCIAL RULING BY A GERMAN CONSTITUTIONAL COURT WHICH IS SET TO DECIDE TODAY WHETHER THE MAASTRICHT TREATY ON CLOSER EUROPEAN POLITICAL AND ECONOMIC UNION VIOLATES GERMANY'S CONSTITUTION THE MARKET'S WAITING FOR THE OUTCOME OF THE GERMAN COURT ON THE MAASTRICHT TREATY SAID BOB HINTON A VICE PRESIDENT AT HARRIS TRUST & SAVINGS BANK IN NEW YORK AHEAD OF THAT DECISION THE DOLLAR REMAINED IN VERY TIGHT RANGES WITH THE ONLY ACTION COMING EARLY IN EUROPE WHEN TRADERS DECIDED TO PUSH IT LOWER AGAINST THE MARK TO TEST WHERE STRONG BUYING SUPPORT COULD BE FOUND WHEN BUYING INTEREST EMERGED AROUND 15960 MARKS TRADERS JUDGED A BOTTOM HAD BEEN FOUND AND THE DOLLAR THEN BEGAN A SLOW ASCENT THAT PUSHED IT AS HIGH AS 16050 MARKS AROUND MIDDAY IN NEW YORK TRADERS NOTED THAT WITH DEALINGS VERY LIGHT THE MAIN TOPIC OF INTEREST WAS SPECULATION OVER THE COMING GERMAN COURT DECISION TRADERS GENERALLY AGREED THAT THE COURT WAS UNLIKELY TO REJECT THE TREATY OUTRIGHT BUT THEY THOUGHT IT POSSIBLE THE COURT WOULD QUESTION SOME ASPECTS OF THE TREATY AND MIGHT PERHAPS CALL FOR A NATIONAL REFERENDUM AND THEY ADDED THAT A REFERENDUM OR ANY OTHER KIND OF OBSTACLE TO QUICK GERMAN RATIFICATION WOULD HELP TO LIFT THE MARK AGAINST OTHER EUROPEAN CURRENCIES BY SPARKING FRESH TURMOIL IN THE EUROPEAN MONETARY SYSTEM OR EMS I'M LOOKING FOR SOME SORT OF MINOR ROADBLOCK WHICH WOULD LIFT THE MARK IN THE EMS SAID MR HINTON WHO NOTED THAT THE BELGIAN FRANC THE SPANISH PESETA AND THE ITALIAN LIRA WOULD LIKELY BE THE WORST HIT BUT MARK GARGANO MANAGER OF FOREIGN CURRENCY TRADING AT FIRST UNION BANK OF NORTH CAROLINA SAID HE THOUGHT THAT THE FRENCH FRANC COULD FEEL THE WORST EFFECTS FROM A SETBACK TO THE MAASTRICHT TREATY THEY WANT TO BE IN THERE WITH THE MARK AS THE NUCLEUS OF A CENTRAL EUROPEAN CURRENCY HE SAID NOTING THAT THE BANK OF FRANCE HAS SADDLED THE WEAK ECONOMY WITH HIGH INTEREST RATES TO HELP KEEP THE FRANC STRONG THEY HAVE THE MOST TO LOSE IF MAASTRICHT DOESN'T GO FORWARD HE SAID 9310120048 931012 POLITICS & POLICY US RAISES AFRICA SOLUTION' TO JUSTIFY PULLOUT FROM SOMALIA BUT POLICY HAS MANY SKEPTICS BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TEN MONTHS AFTER THE BEGINNING OF OPERATION RESTORE HOPE US POLICY IN SOMALIA HAS BEEN WHITTLED DOWN TO THE LAST WORD IN THAT TITLE THE HOPE THAT THE US CAN GET OUT OF EAST AFRICA WITH ITS HONOR CREDIBILITY AND FORCES REASONABLY INTACT IN EFFECT US POLICY NOW SEEMS TO REST ON THE WILLINGNESS OF THE GOVERNMENTS OF ETHIOPIA AND ERITREA TO BAIL OUT THE AMERICANS HERE'S HOW THE AFRICAN SOLUTION THAT THE US IS NOW PROMOTING WOULD WORK THE GOVERNMENTS OF NEIGHBORING COUNTRIES IN THE HORN OF AFRICA ENCOURAGED BY THE US AND PERHAPS BACKED BY THE ORGANIZATION OF AFRICAN UNITY WOULD CONVENE A MEETING OF THE ELDERS OF SOMALIA'S THREE MAJOR CLANS AND THE MANY WARRING SUBCLANS WITHIN THOSE GROUPS SOMALIA IS A SEMIPRIMITIVE CLANBASED SOCIETY SAYS OSMAN SULTAN ALI A SOMALI NATIVE WHO PUBLISHES THE HORN OF AFRICA JOURNAL THE ONLY WAY YOU CAN HAVE PEACE IS THROUGH THE CLAN ELDERS THOSE TALKS WHICH WOULD INCLUDE MOHAMED AIDID THE WARLORD WHO HAS BEEN A TARGET OF US AND UNITED NATIONS FORCES FOR FOUR MONTHS WOULD CEMENT THE TACIT CEASEFIRE NOW IN PLACE LEADING EVENTUALLY TO A PERMANENT CESSATION OF HOSTILITIES THIS WOULD LEAD TO SOME KIND OF TRANSITIONAL STRUCTURE THAT THEN COULD DRAFT A NEW CONSTITUTION FOR SOMALIA IT WOULD BE A BAREBONES STRUCTURE SAID TOM FARER A SPECIALIST IN INTERNATIONAL LAW AT AMERICAN UNIVERSITY WHO HAS WORKED IN SOMALIA FOR THE UN BUT HE ADDS THERE ISN'T ALL THAT MUCH TO GOVERN IN THE MEANTIME THE US WOULD PACK UP AND GO HOME AS A POLICY THE AFRICAN SOLUTION DRAWS GUFFAWS FROM MANY AMERICANS WHO SEE IT SIMPLY AS A RHETORICAL FIG LEAF TO COVER THE AMERICAN RETREAT IF WE'RE RELYING ON THE ETHIOPIANS AND THE ERITREANS FOR AN AFRICAN SOLUTION TO THE PROBLEM MY FRIEND WE'RE LEANING ON A COUPLE OF SLENDER REEDS REPUBLICAN SEN JOHN MCCAIN OF ARIZONA SAID SUNDAY ON CBS NEWS'S FACE THE NATION THE CLINTON ADMINISTRATION'S DECISION TO PURSUE THIS COURSE ALSO RAISES THE QUESTION OF WHY IT DIDN'T DO SO MONTHS AGO ADMINISTRATION OFFICIALS NOW CONCEDE THAT THE POLICY WENT OUT OF CONTROL IN JUNE WHEN THE US AND UN MADE MR AIDID A TARGET OF MILITARY ACTION RATHER THAN A PARTICIPANT IN PEACE TALKS BEYOND THAT SAY AN ARRAY OF EXPERTS ON AFRICA AND MILITARY AFFAIRS US POLICY IN SOMALIA HAS GROWN REMARKABLY INCOHERENT SOMALI CLANS HAVE BEEN AT EACH OTHERS' THROATS FOR YEARS AND IT ISN'T CLEAR THAT THE SITUATION WILL IMPROVE MUCH BEFORE THE MARCH 31 DEADLINE FOR US TROOP WITHDRAWAL NOR IS IT EVIDENT THAT WAITING HALF A YEAR WILL MAKE A US DEPARTURE MUCH MORE CREDIBLE AND IT IS FAR FROM GUARANTEED THAT UN FORCES LACKING A US BACKBONE WILL BE ANY MORE CAPABLE OF CARRYING OUT THEIR MISSION THAN THEY WERE THE LAST TWO TIMES THEY CALLED FOR US HELP IN DECEMBER 1992 WHEN THE US FIRST CAME TO THE RESCUE OR JUNE 1993 WHEN THE UN AGAIN CALLED FOR THE CAVALRY MOREOVER IT ISN'T CLEAR WHY THE US IS ESCALATING ITS PRESENCE IN SOMALIA AT THE SAME TIME IT IS ENTERING INTO A TACIT CEASEFIRE WITH ITS MAIN ADVERSARY IN THE COUNTRY MR AIDID FINALLY CONGRESS DISSATISFIED WITH THE ANSWERS IT IS GETTING MIGHT NOT PERMIT PRESIDENT CLINTON TO CARRY OUT THE PLAN HE ANNOUNCED LAST WEEK TO QUADRUPLE THE US MILITARY PRESENCE IN AND AROUND SOMALIA TO ABOUT 20000 PEOPLE AND THEN GET THEM ALL OUT BY MARCH 31 THE SENATE PROBABLY WILL GET AN OPPORTUNITY TO VOTE ON SOMALIA THIS WEEK WHEN IT CONSIDERS AMENDMENTS TO THE PENDING DEFENSE BUDGET BILL THE SENATE ALSO MAY RAISE QUESTIONS ABOUT THE US MILITARY MISSION TO HAITI WHICH RAN INTO TROUBLE YESTERDAY WHEN A DOCKSIDE MOB BACKED BY THE HAITIAN MILITARY REFUSED TO ALLOW 200 US TROOPS ABOARD A NAVY SHIP TO DISEMBARK UNDER A UN PLAN TO SUPPORT A PEACEFUL TRANSITION TO DEMOCRACY IN HAITI THE US IS SENDING ABOUT 600 TROOPS TO TRAIN HAITIAN POLICE AND REPAIR BRIDGES AND ROADS THE STATE DEPARTMENT HAS BEEN AN ENTHUSIASTIC BACKER OF THE MISSION BUT THE PENTAGON WHICH DISTRUSTS JEANBERTRAND ARISTIDE THE OUSTED HAITIAN PRESIDENT HAS SOUGHT TO SLOW THE DEPLOYMENT REPORTERS ON THE SCENE IN HAITI SAID MEMBERS OF THE MOB SHOUTED THAT HAITI WOULD BECOME ANOTHER SOMALIA FOR THE US IN SOMALIA THE ADMINISTRATION IS SENDING CONFLICTING MESSAGES SAYS KENNETH RAPUANO A DEFENSE ANALYST FOR MERIDIAN CORP WHO ALSO SERVES AS AN INTELLIGENCE OFFICER IN THE MARINE CORPS RESERVE YOU'RE GETTING A KIND OF MISHMASH A ROBUST FORCE BUT A COMPROMISE WITH A GUY WHO DESERVES A PENALTY WE'VE GOT AN UNGODLY MESS ON OUR HANDS ADDS RETIRED ARMY LT GEN WILLIAM ODOM A FORMER STAFF MEMBER OF THE NATIONAL SECURITY COUNCIL AND ONE OF THE FEW EARLY OPPONENTS OF THE US INTERVENTION IN SOMALIA I CAN'T FIGURE OUT WHAT OUR POLICY IS ONE INTERESTING INTERPRETATION COMES FROM PAULINE BAKER AN AFRICA SPECIALIST AT THE ASPEN INSTITUTE A THINK TANK SH CONCLUDES THAT THE POLICY IS SO MUDDLED BECAUSE THERE REALLY ISN'T ANY STRATEGY AT ALL I THINK MANY MEMBERS OF THE ADMINISTRATION HAVEN'T BEEN FORTHRIGHT ABOUT WHAT IT IS BECAUSE THEY'LL TRY ANYTHING AS LONG AS THEY CAN GET OUT WITH HONOR THE ADMINISTRATION'S MAIN HOPE THE AFRICAN SOLUTION IS AS MUCH AN CONFESSION OF FAILURE AS IT IS A PRESCRIPTION FOR POLICY ESSENTIALLY IT MEANS THAT THE US IS BUGGING OUT AND DOESN'T EXPECT THE RUMP UN PRESENCE TO BE ABLE TO DO MUCH SO THE SOMALIS AND THEIR NEIGHBORS HAVE SIX MONTHS IN WHICH TO SOLVE THE PROBLEM THEMSELVES BUT THE NOTION DRAWS MORE SUPPORT FROM SOME PEOPLE FAMILIAR WITH THE SITUATION IN SOMALIA AMERICAN UNIVERSITY'S PROF FARER WHO WAS RETAINED BY THE UN TO INVESTIGATE MR AIDID'S JUNE AMBUSH OF PAKISTANI PEACEKEEPERS SAYS THAT MR AIDID KNOWS THE PRESIDENTS OF ETHIOPIA AND ERITREA AND RESPECTS THEM PROF FARAR THINKS IT IS POSSIBLE TO DEVISE SOME SORT OF GENERAL TRUCE AMONG SOMALIA'S THREE MAJOR CLANS THERE'S A LOT OF EXHAUSTION SAID MR FARER EVERYONE GETS TIRED OF FIGHTING AND THEY DO WANT ACCESS TO FOREIGN ASSISTANCE WHICH THE COUNTRY HAS RELIED ON FOR MUCH OF ITS EXISTENCE MR ALI THE PUBLISHER OF HORN OF AFRICA JOURNAL ARGUES THAT THE LEADERS OF NEIGHBORING COUNTRIES MIGHT BE ABLE TO PERSUADE THE ELDERS OF SOMALIA'S THREE MAJOR CLANS TO RESTRAIN THEIR MILITARY ARMS TWO OF THOSE CLANS THE HAWIYE AND THE DAROOD DOMINATE THE SOUTH IN FACT THAT WAR THAT DEVASTATED MOGADISHU WAS WAGED BETWEEN MR AIDID AND ALI MAHDI WARLORDS WHO HEAD OPPOSING SUBCLANS WITHIN THE HAWIYE IF YOU HAVE PEACE WITHIN THE HAWIYE AND THEN BETWEEN THE HAWIYE AND THE DAROOD YOU WILL HAVE PEACE IN SOMALIA MR ALI SAYS BUT THAT REMAINS ONLY A POSSIBILITY NOT A LIKELIHOOD IN THE MEANTIME THE VAST MAJORITY OF AMERICANS ACCORDING TO POLLS BELIEVE THAT TOO MUCH AMERICAN BLOOD ALREADY HAS BEEN SPILLED TRYING TO BRING PEACE TO A LAND THAT DOESN'T APPEAR TO WANT IT THE SHORTAGE IN SOMALIA WAS NEVER FOOD IT WAS GOVERNMENT CONCLUDES GEN ODOM AND THAT'S STILL THE ISSUE 9310120047 931012 INTERNATIONAL JUNIOR' PERALTA COMES INTO HIS OWN IN IUSACELL ALLIANCE WITH BELL ATLANTIC BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY MEXICAN BUSINESSMAN CARLOS PERALTA IS WHAT'S KNOWN HERE AS A JUNIOR A PEJORATIVE TERM FOR THE SCION OF A WEALTHY MAN BUT NOW HE HAS CLOSED ONE OF THE BIGGEST DEALS SINCE MEXICO EMBRACED FREE MARKETS SNARING A 104 BILLION INVESTMENT BY BELL ATLANTIC CORP IN HIS CELLULAR PHONE COMPANY GRUPO IUSACELL SA HE COULD USE THE INVESTMENT TO RATTLE THE COMMUNICATIONS SYSTEM HERE BY QUICKLY COMPETING AGAINST TELEFONOS DE MEXICO SA FOR BASIC TELEPHONE SERVICE AND BY ATTACKING TELMEX IN THE LONGDISTANCE MARKET ONCE RESTRICTIONS AGAINST COMPETITION DROP IN 1996 SO THOSE WHO HAD DISMISSED MR PERALTA AS A JUNIOR ARE DOING A DOUBLETAKE ALTHOUGH MR PERALTA HEADS IUSACELL THE SECONDLARGEST CELLULAR CONCERN IN THIS CELLULARCRAZED COUNTRY HE HAD BEEN SEEN MAINLY AS A CREATURE OF HIS FATHER A SELFMADE BILLIONAIRE AND WORKAHOLIC THE 77YEAROLD ALEJO PERALTA BUILT FAMILYOWNED GRUPO INDUSTRIAS UNIDAS SA INTO A 17000EMPLOYEE COMGLOMERATE WITH OPERATIONS IN CHEMICALS CEMENT CANDLE HOLDERS AND COPPER CABLE BUT HIS PET PROJECTS ARE A BASEBALL CAMP 60 MILES OUTSIDE MEXICO CITY AND HIS BASEBALL TEAM THE FATHER HAS SO MANY BUSINESSES THAT AT TIMES I THINK HE DOESN'T REMEMBER WHAT HE OWNS SAYS GABRIEL ALARCON PUBLISHER OF EL HERALDO A MEXICO CITY NEWSPAPER CARLOS PERALTA A COMPACT 41YEAROLD WITH A PUFFY MOP OF HAIR NEVER PURSUED HIS FATHER'S INTEREST IN BASEBALL ONE ASSOCIATE SAYS HE HAS AN ATTENTION SPAN OF TWO INNINGS BUT HE ACQUIRED PLENTY OF TOYS OF HIS OWN FAMILY HELICOPTERS WHISK HIM TO AND FROM HIS MAIN OFFICES IN THE POSH MEXICO CITY DISTRICT OF POLANCO AND INTO THE COUNTRYSIDE SOME 60 MILES AWAY WHERE MANY OTHER BUSINESSES ARE LOCATED HE ALSO DEVELOPED A FASCINATION WITH HORSES WHICH HE RAISES FOR JUMPING AND BREEDING MR PERALTA WHO ATTENDED ONLY ONE YEAR OF UNIVERSITY AND HAD HIS FIRST CHILD WHEN HE WAS A TEENAGER WALKED IN THE DEEP SHADOWS OF HIS FATHER AND HIS OLDER BROTHERS BUT THEN TWO BROTHERS DIED IN A HELICOPTER CRASH AND CARLOS PERALTA MOVED TO THE FORE SINCE THEN HE HAS BEEN TRYING TO APPLY HIS FLAIR FOR FLASH TO EXPAND HIS FATHER'S EMPIRE ESPECIALLY IN THE CELLULAR FIELD HE PROMOTED THE CELLULAR PHONES WITH FOR INSTANCE A POLO EXHIBITION IN CHAPULTEPEC PARK MINISKIRTED HOSTESSES GREETED GUESTS AND HANDED OUT IUSACELL'S COLOR MAGAZINE MR PERALTA MANAGED TO LAND AGING MEXICAN ACTRESS MARIA FELIX FOR ITS AD CAMPAIGN WHICH WOULD BE AKIN TO GETTING KATHARINE HEPBURN FOR A US ALL THE BELLS AND WHISTLES OF MR PERALTA'S OPERATION HAVE LEFT SOME WONDERING ABOUT ITS WISDOM IT SEEMS THESE GUYS HAVE GOTTEN TOO CAUGHT UP IN THE LIFESTYLES OF THE USERS OF CELLULAR WITHOUT UNDERSTANDING THAT YOU HAVE TO BE A BORING ENGINEER TO RUN A CELLULAR COMPANY SAYS JACK GRUBMAN AN ANALYST WITH PAINEWEBBER MR GRUBMAN BELIEVES SOME IN THE IUSACELL MANAGEMENT HAVE BEEN ASLEEP AT THE SWITCH THE FIRM WAS STARTED IN 1989 AS THE MEXICAN GOVERNMENT BEGAN TO GIVE OUT CELLULAR CONCESSIONS IN NINE DIFFERENT REGIONS IUSACELL GOT THE MEXICO CITY FRANCHISE WHICH INCLUDES THE SURROUNDING THREE STATES AND GOT A 1 1/2YEAR HEAD START ON TELMEX IN THE MUCHNEEDED CELLULAR BUSINESS YET IUSACELL HAS JUST A 38 SHARE ACCORDING TO GOVERNMENT STATISTICS IN THE COUNTRY'S MOST IMPORTANT REGION STILL MR PERALTA SHOULD STIR THINGS UP IN A COUNTRY WHERE THERE ARE ABOUT EIGHT PHONE LINES FOR EVERY 100 PEOPLE WHERE THE LINES ARE WOEFULLY UNRELIABLE AND WHERE A NEW PHONE LINE COSTS 600 AND CAN TAKE A YEAR TO INSTALL HE'S ONE OF THE GUYS IN THE YOUNG GENERATION OF MEXICANS WHO'S UP TO WHAT WE NEED SAYS MR ALARCON PUBLISHER OF EL HERALDO MR PERALTA SAYS HE WILL HAVE BASIC PHONE SERVICE AVAILABLE BY THE THIRD QUARTER OF NEXT YEAR AND WILL GET INTO LONGDISTANCE SERVICE IN AUGUST 1996 AS SOON AS THE LAW ALLOWS IT IN THE MEANTIME SAYS LINDA MARROQUIN WHO RUNS A HOUSTON SUPPLIER OF TELECOMMUNICATIONS EQUIPMENT HE IS TRYING TO DO AS MUCH AS HE CAN WITH WIRELESS WHICH IS THE WAVE OF THE FUTURE FOR HIS PART MR PERALTA SAYS THE BIG CHALLENGE THAT WE ARE GOING TO FACE IS TO DEVELOP AS SOON AS POSSIBLE THE NETWORK THAT WE ARE GOING TO NEED TO GET INTO VOICE AND DATA SERVICES IT IS NOT GOING TO BE EASY BUT WE WANT TO DO IT IN RECORD TIME 9310120046 931012 NEW AGE MEDIA FUND BRINGS FRESH MEANING TO CHANNELING' BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EVERY HOT NEW TREND HAS ITS OWN MUTUAL FUNDS THE LATEST CROP IS LATCHING ONTO WALL STREET'S MAD RUSH TO BUY INTERACTIVE COMMUNICATIONS STOCKS GENERATING LOTS OF CASH AND BUZZWORDS IN THE PROCESS T ROWE PRICE ASSOCIATES WILL MANAGE NEW AGE MEDIA FUND A PUBICLY TRADED CLOSEDEND FUND SCHEDULED TO HIT THE MARKET THIS WEEK IT WILL INVEST IN CONTENT PROVIDERS NOT TO MENTION TRANSPORTERS AND ENABLERS AND THIS MAY BE ONLY THE BEGINNING NEXT WEEK MONITREND INVESTMENT MANAGEMENT WILL LAUNCH A MUTUAL FUND CALLED NEW MILLENNIUM TECHNOLOGY SERIES IT SOUNDS SOMETHING LIKE THE BIOTECHNOLOGY CRAZE A FEW YEARS AGO SAYS GREGG WOLPER WITH MORNINGSTAR MUTUAL FUNDS IN CHICAGO FIRST THE STOCKS GET HOT THEN YOU HAVE ALL THE FUNDS COMING OUT IT'S THE NEW SECTOR FUND FOR THE MOMENT SAYS BETSY TREITLER EXECUTIVE EDITOR OF THE FUND DECODER A NEW YORK NEWSLETTER SO IT'S HOT BUT WHAT IS IT A LOOK AT THE NEW AGE MEDIA FUND'S OFFERING DOCUMENT ISN'T TERRIBLY ILLUMINATING THE FUND WILL INVEST IN COMPANIES INVOLVED IN ANY FACET OF AN INTEGRATED COMMUNICATIONS NETWORK PROVIDING AN INTERACTIVE FLOW OF MULTIMEDIA INFORMATION WE'RE TOLD PUT AWAY YOUR DICTIONARIES FOLKS IT WON'T HELP T ROWE PRICE CAN'T TALK BECAUSE IT'S IN REGISTRATION SO IT'S BACK TO THE PROSPECTUS THE FUND WILL HOLD CONTENT PROVIDERS THESE PRESUMABLY MIGHT INCLUDE ENTERTAINMENT COMPANIES SUCH AS PARAMOUNT COMMUNICATIONS MARVEL ENTERTAINMENT AND TURNER BROADCASTING AS WELL AS SOFTWARE COMPANIES SUCH AS BRODERBUND SOFTWARE THEN THERE WILL BE THE TRANSPORTERS PERHAPS CABLE WIRELESS COMPUTER NETWORKING AND TELEPHONE STOCKS AND ENABLERS COMPANIES DEVELOPING NEW TECHNOLOGY AND COMMUNICATIONS EQUIPMENT SEMICONDUCTOR COMPANIES MIGHT FALL INTO THIS CATEGORY SO MIGHT NEW CONCERNS SUCH AS 3DO CO WHICH IS DEVELOPING AN INTERACTIVE TECHNOLOGY BOX THAT CAN SIT ON TOP OF A TELEVISION AND AMERICA ONLINE A COMPUTER BULLETINBOARD SERVICE AIMED AT CONSUMERS DON'T COUNT ON SUCH FUNDS TO ASSURE YOU A WORRYFREE RETIREMENT IF THE FUND IS CONCENTRATED IN A CERTAIN PART OF THE MARKET YOU ARE REALLY VULNERABLE TO ANY SWINGS IN THAT SECTOR WARNS MORNINGSTAR'S ASSOCIATE EDITOR CATHERINE VOSS SANDERSTHERE'S ALWAYS THE DANGER OF GETTING IN DURING THE FRENZY AND THEN EXPOSING YOURSELF TO A BIG DOWNSIDE SHE SAYS HOT STOCKS THAT ARE TRADING AT HIGH EARNINGS MULTIPLES CAN QUICKLY BE KNOCKED DOWN BY THE SLIGHTEST BAD NEWS LAST JANUARY THERE WAS THE CELLULARPHONE SCARE ABOUT THEM POSSIBLY CAUSING CANCER AND THE STOCKS TOOK A HUGE PLUNGE SHE SAYS THAT'S AN EXAMPLE OF INVESTORS LATCHING ON TO A GROUP BECAUSE IT IS VERY LUCRATIVE AND AT THE SAME TIME SETTING THEMSELVES UP FOR A PRETTY EASY CORRECTION THERE HAVE BEEN OTHER FUNDS INVESTING IN VARIOUS REALMS OF TELECOMMUNICATIONS OF COURSE BUT THE NEW T ROWE PRICE FUND WILL BE MAKING SOME UNUSUALLY BOLD BETS AS MUCH AS 35 OF ITS ASSETS CAN GO INTO SECURITIES OF FOREIGN COMPANIES AND AS MUCH AS 25 INTO ILLIQUID OR HARDTOTRADE SECURITIES INCLUDING PRIVATE PLACEMENTS VENTURE CAPITAL AND DEVELOPMENTSTAGE COMPANIES THE NEW FUNDS MAY OWE SOMETHING TO MARIO GABELLI'S INTERACTIVE COUCH POTATO INVESTMENT STRATEGY MR GABELLI COINED THE PHRASE A WHILE AGO FOR HIS INVESTING STYLE FOR PRIVATE ACCOUNTS NOW HE'S USING IT FOR SOME NEW MUTUAL FUNDS GABELLI & CO RECENTLY STARTED AN OPENEND FUND SERIES INCLUDING GABELLI GLOBAL TELECOMMUNICATIONS FUND WHICH WILL BE JOINED BY GABELLI GLOBAL ENTERTAINMENT & MEDIA FUND AND GABELLI GLOBAL GROWTH FUND FOR THE FIRST YEAR THESE FUNDS ARE NOLOAD MEANING THEY DON'T IMPOSE A SALES CHARGE OPENEND FUNDS ARE REGULAR MUTUAL FUNDS WHOSE SHARES DON'T TRADE ON AN EXCHANGE WE THINK OF IT AS AN INDIVIDUAL SITTING IN HIS HOUSE ON A COUCH PLAYING WITH A TV REMOTE CONTROL MR GABELLI SAID SO IF I WANT TO SEE WHAT A GREEN TIE LOOKS LIKE ON ME OR CHECK AIRLINE SCHEDULES I AM GOING TO BE ABLE TO DO THAT IN MY HOUSE HE SAYS THE TRANSMISSION CABLE OR WIRELESS COMPANIES AND THE CONTENT PROVIDERS LIKE PARAMOUNT WHERE GABELLI WAS AN EARLY INVESTOR ARE ALL STOCKS WE'D INVEST IN WE ARE ALSO GETTING MORE KNOWLEDGE ABOUT THE TECHNOLOGYTYPE COMPANIES ABOUT TO BE LAUNCHED IS NEW MILLENNIUM TECHNOLOGY SERIES WITH THE INVESTMENT ADVISER MONITREND INVESTMENT MANAGEMENT THE FUND WILL INVEST IN INDUSTRIES RANGING FROM CABLE TO MULTIMEDIA TO ELECTRONICS IT WILL BE ABLE TO MAKE BEARISH BETS KNOWN AS SHORT SALES BORROWING STOCK TO SELL AND HOPING TO BUY IT BACK LATER AT A LOWER PRICE OF AS MUCH AS 25 MICHAEL MURPHY WHO WILL BE THE PORTFOLIO MANAGER OF THE FUND SAYS THE FUND CAN ALSO INVEST IN FUTURES CONTRACTS MR MURPHY IS EDITOR OF THE TECHNOLOGY STOCK LETTER AND ANOTHER NEWSLETTER OVERPRICED STOCK SERVICE IN HALF MOON BAY CALIF THIS FUND IS BASICALLY SET UP TO GET INTO THE WHOLE CONVERGENCE INTO DIGITAL TECHNOLOGY MR MURPHY SAYS ALTHOUGH THESE STOCKS ARE IN THE HIGHESTGROWTH AREA OF THE MARKET IT'S NICE TO KNOW THAT IN TODAY'S HIGHPRICED MARKET I HAVE HEDGING OPTIONS THE FUND WILL IMPOSE A LOAD OR SALES CHARGE OF 35 HE SAYS T ROWE PRICE'S NEW AGE MEDIA FUND IS UNUSUAL BECAUSE THE BALTIMOREBASED FUND COMPANY HASN'T HAD A CLOSEDEND STOCK FUND IN THE US BEFORE CLOSEDENDS TRADE LIKE ANY OTHER STOCK SO THEIR SHARES CAN BE VALUED AT MORE OR LESS THAN THE VALUE OF WHAT'S IN THE PORTFOLIO THE SOCALLED NET ASSET VALUE THE IDEA FOR NEW AGE MEDIA FUND APPARENTLY ORIGINATED WITH BEAR STEARNS LEAD UNDERWRITER WHICH DIDN'T RETURN CALLS SHARES OF THE FUND ARE SCHEDULED TO TRADE ON THE NEW YORK STOCK EXCHANGE ANNUAL OPERATING EXPENSES 15 LIKE OTHER CLOSEDEND INVESTMENTS THIS FUND CARRIES AN EXTRA COST FOR ANY INVESTOR WHO BUYS IT RIGHT AT THE INITIAL OFFERING IT CARRIES A 7 LOAD MEANING THAT OF EVERY 100 AN INVESTOR PUTS UP ONLY 93 GOES INTO THE FUND OFTEN SAVVY INVESTORS WAIT FOR A CLOSEDEND FUND TO START TRADING BEFORE THEY BUY ITS SHARES BUT IN THIS CASE INVESTORS WHO SEEK SHARES AFTER THE INITIAL OFFERING MIGHT HAVE TO PAY A PREMIUM THAT IS A HIGHER PRICE THAN THE FUND'S NET ASSET VALUE SAYS THOMAS J HERZFELD OF MIAMIBASED THOMAS J HERZFELD ADVISORS BECAUSE IT IS NEW AND DIFFERENT IT WILL ATTRACT A LOT INTEREST HE SAYS IN THE BEGINNING IT HAS A BETTER CHANCE THAN MOST FUNDS TO SUSTAIN A PREMIUM IN THE AFTERMARKET IF THEY ARE SUCCESSFUL THERE WILL BE COPYCATS IF THE GROUP GETS CROWDED THEY WON'T BE TRADING AT PREMIUMS LEAD UNDERWRITER BEAR STEARNS & CO OBJECTIVE A CLOSEEND FUND TO INVEST IN EQUITYRELATED SECURITIES OF NEW AGE MEDIA COMPANIES INVOLVED IN ANY FACET OF AN INTEGRATED COMMUNICATIONS NETWORK PROVIDING AN INTERACTIVE FLOW OF MULTIMEDIA INFORMATION 9310120045 931012 BUSINESS BRIEF ADVANCED MICRO DEVICES INC SHAREHOLDERS FILE LAWSUIT OVER SEMICONDUCTOR EFFORTS ADVANCED MICRO DEVICES INC SAID SHAREHOLDERS FILED A CLASSACTION LAWSUIT AGAINST THE COMPANY ALLEGING THAT IT MISLED INVESTORS ABOUT ITS SEMICONDUCTOR DEVELOPMENT EFFORTS THE SUIT WHICH ALSO NAMES DIRECTORS AND CERTAIN OFFICERS OF THE SUNNYVALE CALIF COMPANY COMES IN THE WAKE OF DISAPPOINTING THIRDQUARTER EARNINGS FOR THE CHIP MAKER LAST WEEK AMD ANNOUNCED EARNINGS OF 613 MILLION OR 61 CENTS A SHARE ANALYSTS HAD BEEN EXPECTING PROFITS OF ABOUT 70 CENTS A SHARE AMD'S STOCK DOVE 18 THE DAY OF THE ANNOUNCEMENT AMD SAID IT INTENDS TO VIGOROUSLY DEFEND ITSELF AGAINST THE SUIT IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY AMD CLOSED AT 20125 DOWN 375 CENTS 9310120044 931012 WHO'S NEWS COMPAQ COMPUTER AIDE WHO TOOK FIRM INTO JAPAN RESIGNS HOUSTON THE EXECUTIVE WHO LED COMPAQ COMPUTER CORP'S HIGHPROFILE PUSH INTO JAPAN SAID HE RESIGNED FROM THE COMPANY LAST WEEK THOMAS HOWARD FORMERLY DIRECTOR OF INTERNATIONAL PRODUCT MARKETING FOR HOUSTONBASED COMPAQ SAID HE PLANS TO JOIN CURRID & CO A NINEPERSON TECHNOLOGY CONSULTING FIRM IN HOUSTON MR HOWARD AN 11YEAR COMPAQ VETERAN SPEARHEADED COMPAQ'S EXPANSION INTO JAPAN LAST YEAR AND HELPED SET UP MOST OF THE COMPANY'S OTHER INTERNATIONAL SUBSIDIARIES CURRENTLY INTERNATIONAL SALES ACCOUNT FOR ABOUT 50 OF COMPAQ'S REVENUE WHICH TOTALED 4 BILLION IN 1992 MR HOWARD SAID HE LEFT COMPAQ BECAUSE THE COMPANY HAD OUTGROWN THE NEED FOR AN INTERNATIONAL DEVELOPMENT ARM THERE WEREN'T ANY BIG MARKETS LEFT HE SAID IT WAS TIME TO MOVE ON A COMPANY SPOKESWOMAN SAID A SUCCESSOR TO MR HOWARD WHO REPORTED TO LORIE STRONG A COMPAQ VICE PRESIDENT HASN'T YET BEEN NAMED 9310120043 931012 BUSINESS BRIEF STRATUS COMPUTER INC UNIT OF BELLSOUTH CORP TO BE BOUGHT FOR 15 MILLION STRATUS COMPUTER INC IS TO ANNOUNCE TODAY THAT IT WILL BUY A SMALL UNIT OF BELLSOUTH CORP THE ATLANTABASED REGIONAL TELEPHONE COMPANY ITS SECOND ACQUISITION IN THE PAST MONTH STRATUS BASED IN MARLBOROUGH MASS IS EXPECTED TO PAY 15 MILLION FOR MOST OF THE ASSETS OF THE UNIT WHICH HAD REVENUE OF ABOUT 10 MILLION LAST YEAR THE ACQUISITION IS PART OF A NEW STRATEGY BY STRATUS TO INVEST MORE DEEPLY IN SOFTWARE FOR ONLINE TRANSACTION PROCESSING SUCH AS THAT USED IN AIRLINE RESERVATIONS AND BANKTELLER NETWORKS STRATUS HAS SAID THAT IT COULD SPEND AS MUCH AS 100 MILLION ON THE EFFORT THE BELLSOUTH UNIT BSSI IS A SOFTWARE AND SERVICE CONCERN THAT PROVIDES LINKS BETWEEN OLDER MAINFRAME COMPUTERS USED FOR ONLINE PROCESSING AND NEWER SMALLER SYSTEMS BASED ON STANDARD SOFTWARE A STRATUS EXECUTIVE SAID THAT BSSI IS PROFITABLE BUT WON'T HAVE MUCH EFFECT ON STRATUS'S EARNINGS IN THE NEAR TERM HE ALSO SAID STRATUS IS LIKELY TO MAKE MORE ACQUISITIONS IN COMING MONTHS IN SEPTEMBER STRATUS PAID 15 MILLION TO BUY DALLAS SOFTWARE MAKER SHARED FINANCIAL SYSTEMS 9310120042 931012 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED OCT 8 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER BALTIMORE COUNTY MD WILL REDEEM ON NOV 1 1993 ITS 115 INDUSTRIAL DEVELOPMENT REVENUE BONDS SERIES 1982 DUE DEC 1 2002 MELLON BANK PHILADELPHIA IS PAYING AGENT BEAVER COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON NOV 10 1993 ITS 5 3/4 POLLUTION CONTROL REVENUE BONDS 1973 SERIES A SOCIETY NATIONAL BANK CLEVELAND OHIO IS TRUSTEE MCINTOSH INDUSTRIAL DEVELOPMENT BOARD WILL REDEEM ON NOV 1 1993 2950000 PRINCIPAL AMOUNT OF ITS 6 POLLUTION CONTROL REVENUE BONDS SERIES 1977 DUE NOV 1 2007 CHASE MANHATTAN BANK NEW YORK IS TRUSTEE CHRYSLER CORP WILL REDEEM ON NOV 15 1993 THE FOLLOWING SINKING FUND DEBENTURES 8 DUE 1998 AND 8 7/8 DUE 1995 IT WILL ALSO REDEEM ITS 12 DEBENTURES DUE 2015 FIRST CHICAGO TRUST CO NEW YORK IS TRUSTEE FEDERAL NATIONAL MORTGAGE ASSOCIATION WILL REDEEM ON NOV 10 1993 ITS 84 DEBENTURES SERIES SM1995O DUE NOV 10 1995 SOUTHWESTERN ELECTRIC POWER CO WILL REDEEM ON NOV 5 1993 ITS 7 FIRST MORTGAGE BONDS SERIES J DUE DEC 1 1997 CONTINENTAL BANK IS TRUSTEE 9310120041 931012 INTERNATIONAL BRIEF LUCAS INDUSTRIES PLC PROFIT MORE THAN DOUBLED ON SALES RISE FOR FISCAL YEAR UK AEROSPACE AND AUTOMOBILE COMPONENTS GROUP LUCAS INDUSTRIES PLC SAID MONDAY THAT ITS PROFIT FOR ITS FISCAL YEAR MORE THAN DOUBLED AND THAT IT WOULD OFFER AN ENHANCED SCRIP DIVIDEND ALTERNATIVE PROFIT ROSE TO 503 MILLION 773 MILLION FOR THE YEAR ENDED JULY 31 FROM 225 BILLION FOR THE PREVIOUS YEAR SALES ROSE 82 TO 256 BILLION FROM 237 BILLION LUCAS SAID THAT SHAREHOLDERS WILL BE OFFERED THE OPTION OF A 50 ENHANCED SCRIP DIVIDEND THIS ALTERNATIVE WILL PROVIDE SHAREHOLDERS WITH THE OPPORTUNITY TO RECEIVE NEW ORDINARY SHARES WITH A VALUE OF 74 PENCE 113 CENTS A SHARE INSTEAD OF THE CASH DIVIDEND OF 49 PENCE A SHARE IN ADDITION BARCLAYS DE ZOETE WEDD SECURITIES WILL BE OFFERING TO BUY NEW ORDINARY SHARES ARISING UNDER THE SCRIP DIVIDEND ALTERNATIVE AT A MINIMUM VALUE EQUIVALENT TO 72 PENCE PER SHARE 9310120040 931012 INTERNATIONAL YELTSIN'S DEVOTION TO COOLING TENSIONS WITH JAPAN IS QUESTIONED AS VISIT BEGINS BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO RUSSIAN PRESIDENT BORIS YELTSIN ARRIVED IN JAPAN MONDAY NIGHT FOR A TWODAY SUMMIT EAGER TO CONVINCE THE WORLD HE IS IN FIRM CONTROL OF HIS COUNTRY JUST A WEEK AFTER CRUSHING AN INSURGENCY AND DECLARING EMERGENCY RULE IT ISN'T CLEAR HOWEVER HOW SERIOUSLY MR YELTSIN TAKES THE OTHER OSTENSIBLE MISSION FOR THE JOURNEY TO JAPAN EASING THE DEEP TENSIONS BETWEEN MONEYHUNGRY RUSSIA AND ITS RICHEST NEIGHBOR AN ENMITY THAT HAS STUBBORNLY OUTLASTED THE COLD WAR AND CONTINUES TO COMPLICATE ASIA'S GEOPOLITICAL MAP THE UNPREDICTABLE MR YELTSIN SEEMED TO SURPRISE HIS WAITING HOSTS WHEN HE ANNOUNCED JUST BEFORE BOARDING HIS PLANE THAT HE HOPED TOKYO WON'T SPOIL THE VISIT BY BRINGING UP A LONGSTANDING TERRITORIAL ROW THE JAPANESE CONSIDER RUSSIA'S CONTROL OF A CHAIN OF ISLANDS SEIZED BY THE SOVIET ARMY AFTER WORLD WAR II A KEY STUMBLING BLOCK TO IMPROVING BILATERAL RELATIONS ALTHOUGH JAPANESE OFFICIALS SAID THEY DIDN'T EXPECT MR YELTSIN TO MAKE ANY MAJOR CONCESSIONS DURING THE VISIT THEY DID ASSUME HE WOULD AT LEAST ACKNOWLEDGE THE DISPUTE MR YELTSIN ALSO TOLD MOSCOW REPORTERS HE HOPED THE TRIP WILL ENHANCE ECONOMIC COOPERATION WITH JAPAN BUT THE JAPANESE FOR THEIR PART HAVE MADE IT CLEAR THEY DON'T PLAN TO OFFER HIM ANY NEW FINANCIAL AID STILL THE JAPANESE CONSIDER MR YELTSIN'S DECISION TO MAKE THE TRIP AT ALL A SIGNIFICANT GOODWILL GESTURE MR YELTSIN HAD TWICE CANCELED PLANNED VISITS TO TOKYO IN THE PAST YEAR AND JAPAN'S MODEST GOAL FOR THE MEETINGS IS TRYING TO PLACE OUR RELATIONS ON THE RIGHT TRACK A JAPANESE FOREIGN MINISTRY OFFICIAL HAS SAID THE RUSSIAN LEADER'S VISIT PUTS THE JAPANESE IN A DIFFICULT POSITION JAPAN IS THE FIRST MEMBER OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS THAT MR YELTSIN HAS VISITED SINCE LAST WEEK'S UPHEAVAL IN MOSCOW AND IS EXPECTED TO OFFER HIM BASIC SUPPORT AS THE G7 REPRESENTATIVE PRESIDENT CLINTON AND EUROPEAN LEADERS HAVE GIVEN MR YELTSIN SOLID ENDORSEMENTS BUT JAPAN IS PROBABLY THE LEAST ENTHUSIASTIC AMONG THOSE NATIONS ABOUT THE RUSSIAN LEADER PRIME MINISTER MORIHIRO HOSOKAWA WILL SUPPORT MR YELTSIN'S EFFORTS TO REFORM RUSSIA THE JAPANESE FOREIGN MINISTRY OFFICIAL SAID YET THE JAPANESE PREMIER WILL APPARENTLY SIDESTEP AN ENTHUSIASTIC ENDORSEMENT OF MR YELTSIN HIMSELF MR HOSOKAWA WILL STRESS THAT THE DEMOCRATIC PROCESS SHOULD BE RESPECTED BY EVERYBODY THE OFFICIAL ADDED SOME CONSERVATIVE JAPANESE POLITICIANS ARE EVEN CLAMORING FOR MR YELTSIN'S CENSURE WE SHOULD PROTEST THE BLOODSHED IN MOSCOW SAID SHINZO ABE A MEMBER OF THE OPPOSITION LIBERAL DEMOCRATIC PARTY SUCH REACTION MAY STEM LESS FROM A CONCERN FOR WORLD DEMOCRACY TOKYO SEEMED MORE MUTED IN ITS RESPONSE TO CHINA'S 1989 CRACKDOWN AT TIANANMEN SQUARE THAN FROM A CENTURY OF RANCOR AND WAR WITH RUSSIA THE RUSSIANHELD ISLANDS OFF NORTHERN JAPAN REMAIN A RALLYING POINT FOR JAPAN'S NOISY RIGHT WING AND A RATIONALE FOR WITHHOLDING LARGESCALE FINANCIAL AID DURING A 1991 VISIT TO TOKYO THENSOVIET LEADER MIKHAIL GORBACHEV RAISED HOPES FOR A RAPPROCHEMENT BUT HIS DOMESTIC TROUBLES BLOCKED HIM FROM STRIKING ANY BARGAIN MR YELTSIN HASN'T DONE MUCH SINCE TO IMPROVE RUSSOJAPANESE TIES YET EVENTS NOW APPEAR TO JUSTIFY SOME FORM OF DETENTE MR YELTSIN COULD USE THE BILLIONS OF DOLLARS IN GOVERNMENT AID AND PRIVATE INVESTMENT THAT A FRIENDLY JAPAN MIGHT PROVIDE JAPAN IS EAGER TO PLAY A MORE ACTIVE DIPLOMATIC WORLD ROLE THE US AND EUROPE HAVE PRESSED TOKYO TO SHOULDER MORE RESPONSIBILITY FOR RUSSIAN DEMOCRATIC REFORMS AS A TEST OF ITS METTLE JAPAN HAS RESPONDED ALBEIT GRUDGINGLY HOSTING MR YELTSIN IN JULY AT THE ANNUAL G7 SUMMIT AND PLEDGING 18 BILLION IN AID JAPAN AT TIMES APPEARS MORE DESPERATE TO GET MR YELTSIN'S BLESSING FOR ITS DESIRED SUPERPOWER STATUS THAN MR YELTSIN IS FOR JAPANESE SUPPORT BY COMING TO JAPAN IN SPITE OF THE INCIDENTS THAT HAVE TAKEN PLACE SO RECENTLY MR YELTSIN SHOWS HE IS ATTACHING GREAT IMPORTANCE TO JAPAN SAID SHIGEKI HAKAMADA A RUSSIA EXPERT AT AOYAMA GAKUIN UNIVERSITY THE DAY MR YELTSIN DISSOLVED PARLIAMENT LAST MONTH LEADING PAPERS RAN FRONTPAGE STORIES WITH HEADLINES SUCH AS JAPANESE GOVERNMENT WORRIES ABOUT ADVERSE EFFECT ON YELTSIN'S PROJECTED TRIP TO TOKYO MASAYOSHI KANABAYASHI CONTRIBUTED TO THIS ARTICLE 9310120039 931012 MARKETING BRIEF WALT DISNEY CO BEAUTY AND THE BEAST' VIDEO SETS RETAIL RECORD OVERSEAS TWO YEARS AFTER ITS THEATRICAL RELEASE BEAUTY AND THE BEAST IS STILL PROVING A CASH COW FOR WALT DISNEY CO WITH A RECORD 10 MILLIONPLUS COPIES OF THE VIDEOCASSETTE SHIPPED TO OVERSEAS RETAILERS MICHAEL O JOHNSON PRESIDENT OF DISNEY'S BUENA VISTA HOME VIDEO INTERNATIONAL UNIT SAID THAT OF THE CASSETTES SHIPPED DURING THE PAST MONTH MORE THAN SEVEN MILLION ALREADY HAVE BEEN PURCHASED BY CONSUMERS AT AN AVERAGE RETAIL PRICE OF 26 EACH THE TEN MILLION CASSETTES WILL BRING MORE THAN 130 MILLION IN REVENUE INDUSTRY OBSERVERS ESTIMATE THE PREVIOUS INTERNATIONAL RECORDHOLDER WAS DISNEY'S CINDERELLA WITH EIGHT MILLION CASSETTES SHIPPED AND SOLD DOMESTICALLY BEAUTY HAS SOLD MORE THAN 22 MILLION VIDEOCASSETTE COPIES AND THE ANIMATED FILM TOOK IN 345 MILLION WORLDWIDE IN ITS THEATRICAL RELEASE 9310120038 931012 MARKETING BRIEF NOTED NEWSPAPERS JOURNAL REGISTER CO TRENTON NJ AGREED TO BUY THE REGISTER CITIZEN A TORRINGTON CONN DAILY WITH A CIRCULATION OF 16631 FROM EAGLE PUBLISHING GROUP PITTSFIELD MASS TERMS WEREN'T DISCLOSED THE PURCHASE EXPECTED TO BE COMPLETED BY NOV 1 BRINGS TO 15 THE DAILY NEWSPAPERS OWNED BY THE COMPANY 9310120037 931012 WHO'S NEWS COMPUTER SCIENCES RESTRUCTURING BOOSTS OUTSOURCING DIVISION EL SEGUNDO CALIF COMPUTER SCIENCES CORP ELEVATED ITS TECHNOLOGY MANAGEMENT DIVISION TO GROUP STATUS AND PROMOTED EDWARD P BOYKIN TO GROUP PRESIDENT THE NEW GROUP OPERATES THE COMPANY'S MAJOR COMMERCIAL OUTSOURCING CONTRACTS IN NORTH AMERICA WHICH ACCOUNTED FOR ABOUT 400 MILLION OR 16 OF COMPUTER SCIENCES'S REVENUE OF 25 BILLION IN THE YEAR ENDED MARCH 31 1993 OUTSOURCING IS THE PRACTICE OF USING AN OUTSIDE CONTRACTOR FOR COMPUTER AND OTHER SERVICES COMPUTER SCIENCES HOPES THE NEW STRUCTURE WILL HELP ACCELERATE ITS GROWTH IN THE DYNAMIC OUTSOURCING MARKET MR BOYKIN 55 YEARS OLD WAS PRESIDENT OF THE COMPANY'S APPLIED TECHNOLOGY DIVISION COMPUTER SCIENCES A DATAMANAGEMENT COMPANY HAS FIVE GROUPS INCLUDING THE NEW ONE AND 21 DIVISIONS THOMAS WILLIAMS 57 FORMER PRESIDENT OF THE TECHNOLOGY MANAGEMENT DIVISION WAS NAMED A CORPORATE VICE PRESIDENT HE IS MOVING TO LONDON TO COORDINATE ACTIVITY ON A MAJOR INTERNATIONAL OUTSOURCING OPPORTUNITY THE COMPANY SAID 9310120036 931012 WHO'S NEWS JOHNSON & JOHNSON JOHNSON & JOHNSON NEW BRUNSWICK NJ LARRY G PICKERING 50 YEARS OLD WAS NAMED TO THE NEW POSITION OF CHAIRMAN AT JANSSEN NORTH AMERICA A UNIT OF JANSSEN PHARMACEUTICA A BELGIANBASED UNIT OF THIS HEALTHCARE AND CONSUMER PRODUCTS COMPANY PAULO F COSTA 43 WHO HAD BEEN EXECUTIVE VICE PRESIDENT SUCCEEDS MR PICKERING AS PRESIDENT OF JANSSEN PHARMACEUTICA USA 9310120035 931012 BUSINESS BRIEF GENRAD INC CHARGE RELATED TO JOB CUTS PLANNED FOR FISCAL 3RD PERIOD GENRAD INC SAID IT PLANS TO TAKE A PRETAX CHARGE OF ABOUT 40 MILLION IN ITS FISCAL THIRD QUARTER ENDED OCT 2 TO COVER EXPENSES RELATED TO A 12 WORKFORCE REDUCTION AND OTHER RESTRUCTURING MOVES IN THE 1992 QUARTER THE CONCORD MASS COMPANY HAD A LOSS OF 25 MILLION OR 14 CENTS A SHARE ON REVENUE OF 327 MILLION GENRAD SAID THE RESTRUCTURING CHARGE WILL COVER EXPENSES RELATED TO THE REDUCTION OF EXCESS CAPACITY AND EQUIPMENT AS WELL AS SEVERANCE AND OUTPLACEMENT COSTS FOR 160 EMPLOYEES WORLDWIDE GENRAD A PRINT AND CIRCUIT BOARD TESTEQUIPMENT CONCERN SAID THE RESTRUCTURING IS THE RESULT OF PREVAILING SLUGGISH WORLDWIDE MARKET DEMAND OUR SHORT TERM GOAL IS TO RETURN GENRAD TO PREDICTABLE SUSTAINABLE PROFITABILITY THROUGH ALL OF 1994 AND BEYOND SAID JAMES F LYONS GENRAD PRESIDENT AND CHIEF EXECUTIVE 9310120034 931012 CHOCK FULL O'NUTS PLANS TO REENTER COFFEE SHOP MARKET COMPANY GOING BACK TO ROOTS IN CROWDED GOURMET FIELD RAISING ANALYSTS' DOUBTS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CHOCK FULL O'NUTS WANTS TO REDISCOVER ITS PAST BY GOING BACK TO THE FUTURE AFTER LEAVING THE COFFEE SHOP BUSINESS IN THE EARLY 1980S THE COFFEE ROASTING COMPANY SAID IT PLANS TO COMPETE WITH THE POPULAR GOURMET COFFEE MARKET WHERE SUCH CHAINS AS SEATTLEBASED STARBUCKS CORP ARE SHOWING BUSTLING SALES CHOCK FULL SAID IT PLANS TO OPEN ITS FIRST STORE IN MANHATTAN IN EARLY 1994 WE THINK THIS IS THE RIGHT TIME TO GO BACK TO OUR ROOTS SAID MARVIN I HAAS CHIEF EXECUTIVE OFFICER AT THE COFFEE CONCERN WE ARE EXPLORING SEVERAL DIFFERENT FORMATS AND WE PLAN TO OPEN A HANDFUL OF STORES IN 1994 CHOCK FULL HAD SALES OF 252 MILLION FOR THE YEAR ENDED JULY 31 MOST OF IT FROM SELLING BRANDED COFFEE THE DECISION TO REENTER THE COFFEE RETAIL MARKET ESPECIALLY AT THE LUXURY END OF THE BUSINESS RAISED SOME DOUBTS AMONG ANALYSTS WHO FOLLOW THE LUXURY COFFEE BUSINESS THERE ARE A LOT OF PEOPLE OUT THERE TRYING TO SELL COFFEE SAID JOHN ROHS AN ANALYST WITH WERTHEIM SCHROEDER CHOCK KNOWS THE COFFEE BUSINESS BUT I THINK WE'RE TALKING ABOUT ANOTHER LEVEL HERE INDEED THE RECENT COFFEE BOOMLET HAS NOT BEEN IN THE CUPOFJOEFORTWOBITS MARKET INSTEAD FOLKS ARE SHELLING OUT AS MUCH AS 3 AND MORE FOR CUPS OF ESPRESSO CAPPUCCINO AND OTHER RICH ROASTBASED DRINKS A HIGHEND COFFEE SHOP IS A PLACE WHERE YOU STOP WHAT YOU'RE DOING AND TAKE FIVE MINUTES SAID TRICIA REEBS AN ANALYST WITH DAIN BOSWORTH IT CAN BE A NICE PART OF EVERYONE'S DAY CHOCK WOULD REALLY HAVE TO CHANGE ITS MARKETING PRODUCTS AND DELIVERY FOR THE WHOLE CONCEPT TO SUCCEED CHOCK FULL O'NUTS PLANS TO DO JUST THAT IT HAS AGREED TO SELL ITS HILLSIDE COFFEE OF CALIFORNIA UNIT FOR ABOUT 385 MILLION IN CASH TO GOURMET COFFEES OF AMERICA A PRIVATELY HELD FIRM IN BOCA RATON FLA THE SALE WILL RESULT IN A 9 MILLION OR 87 CENTS A SHARE GAIN IN THE SECOND QUARTER ENDING JAN 31 THE COMPANY SAID THE SALE WILL PROVIDE CASH THAT WILL IN PART SUPPORT THE NEW RETAIL VENTURE ANALYSTS RECALL CHOCK FULL O'NUTS' LAST RETAILING EFFORT WITH A SOUR TASTE AFTER A HEYDAY WITH MORE THAN 100 STORES IN THE 1950S AND 1960S MANY OF THEM IN NEW YORK THE CHOCK CONCEPT OF A FULLSERVICE RESTAURANT EMPHASIZING BREAKFAST AND LUNCH FELL ON HARD TIMES THE RESTAURANTS BEGAN TO CLOSE AS LEASE PAYMENTS MOVED HIGHER AND CUSTOMERS BECAME FEWER IN ITS CORE NORTHEAST MARKET BY 1980 ONLY 33 RESTAURANTS REMAINED AND IN 1983 THE COMPANY CLOSED ITS LAST STORE AT 41ST AND MADISON AVENUE IN MANHATTAN SOME OTHER STORES NOT OPERATED BY THE COMPANY CONTINUED TO OPERATE FOR A FEW MORE YEARS SEVERAL ANALYSTS RECALL THAT IN THE FINAL YEARS THE COFFEE SHOPS TENDED TO BE POORLY MAINTAINED AND UNATTRACTIVE MR HAAS SAYS THE COFFEE COMPANY INTENDS TO SPRUCE UP ITS IMAGE IN THE NEW VENTURE WE WANT TO GO UPSCALE IT'S NOT GOING TO BE A DOUGHNUT SHOP HE SAID WHILE REMAINING CIRCUMSPECT THE COMPANY SAID IT PLANS TO OFFER EUROPEANSTYLE GOURMET COFFEE IN A BAR FORMAT OTHER FORMATS ARE ALSO BEING EXPLORED CHOCK ALSO SAID IT HAS SOME REAL ESTATE FROM ITS LAST FORAY INTO THE RESTAURANT RETAIL BUSINESS THAT COULD ASSIST ITS NEW EFFORT 9310120033 931012 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY CHRISTOPHER CONTE BUSINESS GROUPS TRY TO BLOCK THE NOMINEE FOR NLRB CHAIRMAN THE NATIONAL ASSOCIATION OF MANUFACTURERS IN LETTERS TO CONGRESS AND THE WHITE HOUSE URGES REJECTION OF WILLIAM GOULD IV TO HEAD THE NATIONAL LABOR RELATIONS BOARD IT SAYS THE STANFORD UNIVERSITY LAW PROFESSOR'S WRITINGS SHOW HE IS BIASED IN FAVOR OF UNIONS THE LABOR POLICY ASSOCIATION AND THE SOCIETY FOR HUMAN RESOURCE MANAGEMENT ALSO OPPOSE HIM THE CHAMBER OF COMMERCE IS LIKELY TO CONTEST HIM TOO THE CHANCES THEY WILL SCUTTLE THE NOMINATION ARE VIRTUALLY ZERO BUT THE BUSINESS COMMUNITY HOPES THE FIGHT WILL INFLUENCE HOW THE ADMINISTRATION FILLS OTHER OPENINGS ON THE PANEL PHILADELPHIA LAWYER MARGARET BROWNING A DEMOCRAT IS ALREADY SLATED TO TAKE ONE SEAT BUT THE OTHER MUST BE TAKEN BY AN INDEPENDENT OR REPUBLICAN FRED FEINSTEIN CHIEF COUNSEL ON THE HOUSE LABORMANAGEMENT SUBCOMMITTEE IS IN LINE TO BECOME THE NLRB'S GENERAL COUNSEL THE STAFF SLOT IN CHARGE OF DETER MINING WHEN TO BRING ACTIONS WORKERS' COMPENSATION WHAT IS THE TRADEOFF BETWEEN COST AND CONSCIENCE COMPANIES SEEKING LOW WORKERS' COMPENSATION INSURANCE COSTS COULD DO BEST IN VIRGINIA INDIANA SOUTH CAROLINA MARYLAND OR OREGON JUDGING FROM A RANKING OF 44 STATES BY ACTUARIAL & TECHNICAL SOLUTIONS BOHEMIA NY BUT A REVIEW OF LAWS IN ALL 50 STATES SUGGESTS MICHIGAN RHODE ISLAND CONNECTICUT VERMONT OR MASSACHUSETTS PROMISE WORKERS THE BEST BENEFITS LOW COSTS OFTEN REFLECT SKIMPY BENEFITS OREGON FOR INSTANCE HAS THE FIFTHLOWEST COSTS AND THIRDLOWEST BENEFITS BUT THAT ISN'T ALWAYS TRUE CALIFORNIA HAS THE THIRDHIGHEST COSTS EVEN THOUGH ITS BENEFITS ARE SECOND LOWEST THE BEST COMBINATION OF LOW COSTS AND GENEROUS BENEFITS APPEARS TO BE IN MARYLAND WHICH HAS THE FOURTHLOWEST COSTS AND 15THHIGHEST BENEFITS PENSION REFORM THE CLINTON ADMINISTRATION'S PLAN DRAWS CAUTIOUS SUPPORT ROCKWELL INTERNATIONAL VICE PRESIDENT CHARLES HARFF SAYS THE PROPOSED SPEEDUP IN FUNDING OF UNDERFUNDED PLANS IS PERFECTLY SENSIBLE ADDS JAMES KAITZ A LOBBYIST FOR THE FINANCIAL EXECUTIVES INSTITUTE THERE'S NO QUESTION THEY'RE HEADING IN THE RIGHT DIRECTION BUT SOME COMPANIES WITH UNDER FUNDED PLANS INCLUDING GENERAL MOTORS AND CSX DECLINE TO COMMENT AMERICAN AIRLINES OBJECTS TO EXTENDING GOVERNMENT GUARANTEES TO PENSIONBENEFIT INCREASES BY UNDERFUNDED PLANS IT'S HARD TO GENERATE SYMPATHY FOR COMPANIES THAT HAVE FAILED TO MEET THEIR OBLIGATIONS OVER TIME A SPOKESMAN SAYS IRONICALLY GENERAL MOTORS WHICH ACCOUNTS FOR HALF OF THE NATION'S 45 BILLION IN UNFUNDED PENSION LIABILITIES BACKS A PLAN THAT WOULD DENY GUARANTEES IN SUCH CASES LABOR SECRETARY ROBERT REICH SAYS THE CLINTON PLAN WON'T IMPOSE UNDUE BURDENS BUT MR HARFF FRETS WHAT REICH THINKS IS A SAFEGUARD MAY NOT BE TO SOMEONE ELSE FATCAT TEAMSTERS ARE A SLOWLY DYING BREED THE REFORMMINDED TEAMSTERS FOR A DEMOCRATIC UNION SAYS THE INTERNATIONAL LAST YEAR CUT THE NUMBER OF ITS OFFICIALS RECEIVING MORE THAN 100000 TO 24 FROM 81 IN 1991 LARGELY BY PREVENTING THEM FROM COLLECTING PAY FROM BOTH THE INTERNATIONAL AND LOCAL UNION AFFILIATES BUT MANY OFFICIALS JUST JACKED UP THEIR PAY AT THE LOCAL OR REGIONAL LEVEL SO THE OVERALL NUMBER IN THE 100000 CLUB DROPPED ONLY TO 170 FROM 189 FRAYED SAFETY NET ONLY 39 OF THE UNEMPLOYED RECEIVED JOBLESS BENEFITS DURING THE LAST RECESSION DOWN FROM 43 IN 1980 AND AROUND 50 DURING DOWNTURNS OF THE 1950S '60S AND '70S THE GENERAL ACCOUNTING OFFICE REPORTS THE AGENCY CITES TIGHTER ELIGIBILITY STANDARDS BY FISCALLY STRAPPED STATES QUALITY TOPS DIVERSITY IN CORPORATE PAY SCALES A SURVEY BY CONSULTING FIRM HEWITT ASSOCIATES SHOWS THAT HEADS OF QUALITY EFFORTS ARE PAID AN AVERAGE OF 141640 COMPARED WITH 85686 FOR HEADS OF DIVERSITY PROGRAMS WORK AND FAMILY MANAGERS TRAIL BOTH WITH PAY AVERAGING 57380 EXECUTIVE SWEETS STUDIES SHOW LIFE IS STILL PRETTY GOOD AT THE TOP THE 200 LARGEST COMPANIES THIS YEAR ALLOCATED A RECORD 911 OF ALL SHARES OUTSTANDING TO MANAGEMENT STOCK OPTION AND EQUITY PROGRAMS UP FROM 69 IN 1988 REPORT CONSULTANTS PEARL MEYER & PARTNERS MANAGING DIRECTOR RHODA EDELMAN BELIEVES COMPANIES BUILT WAR CHESTS TO BEAT DISCLOSURE REQUIREMENTS THAT TOOK EFFECT THIS YEAR AND AN EXPECTED CHANGE IN ACCOUNTING RULES THAT WILL REQUIRE COMPANIES TO CHARGE EARNINGS FOR STOCK OPTIONS BEGINNING IN 1997 ANOTHER STUDY SUGGESTS WEAK EXECUTIVES AREN'T ESPECIALLY VULNERABLE IN TAKEOVER FIGHTS IN THE ACADEMY OF MANAGEMENT JOURNAL PROFESSORS JAMES WALSH OF THE UNIVERSITY OF MICHIGAN AND RITA KOSNIK OF TRINITY UNIVERSITY SAY TURNOVER AMONG EXECUTIVES AND DIRECTORS IN RAIDED FIRMS WAS NO HIGHER THAN IN ONES THAT WEREN'T TAKEOVER TARGETS THE SOUTHERN FINANCE PROJECT A THINK TANK SAYS CHIEF EXECUTIVES' PAY AT 24 LARGE BANKING COMPANIES JUMPED 54 BETWEEN 1990 AND 1992 WHILE OVERALL WAGES AND BENEFITS ROSE JUST 83 THE CHECKOFF REFERRING TO THE PENDING NORTH AMERICAN FREE TRADE AGREEMENT MONSIGNOR GEORGE HIGGINS PRAYS AT AN AFLCIO CONVOCATION TO LET NAFTA BE AT LEAST AS FAIR TO WORKERS AS IT IS TO INVESTORS THIS JUST IN DUNHILL SURVEY REVEALS GENDER GAP BETWEEN THE SEXES DUNHILL PERSONNEL SYSTEM INC PROCLAIMS IN A PRESS RELEASE 9310120032 931012 BUSINESS BRIEF PACIFICARE HEALTH SYSTEMS INC FIRM SIGNS PACT TO ACQUIRE ADVANTAGE HEALTH PLANS INC PACIFICARE HEALTH SYSTEMS INC CYPRESS CALIF SAID IT SIGNED AN AGREEMENT TO ACQUIRE ADVANTAGE HEALTH PLANS INC A CLOSELY HELD HEALTH MAINTENANCE ORGANIZATION IN MIAMI TERMS WEREN'T DISCLOSED ADVANTAGE HEALTH EXPECTS TO POST 1993 REVENUE OF ABOUT 20 MILLION PACIFICARE SAID OF ADVANTAGE HEALTH'S 29000 MEMBERS ABOUT HALF ARE ELIGIBLE FOR MEDICAID PACIFICARE A MANAGED CARE CONCERN HAS ABOUT 11 MILLION MEMBERS IN CALIFORNIA OKLAHOMA OREGON TEXAS AND WASHINGTON IT'S OUR GOAL TO EXPAND NATIONALLY AND TO BE IN SEVERAL MORE GEOGRAPHIC MARKETS A SPOKESMAN SAID WE ARE IN VARIOUS STAGES OF DISCUSSIONS WITH OTHER HMOS HE DECLINED TO ELABORATE IN NATIONAL TRADING IN THE OVERTHECOUNTER MARKET YESTERDAY PACIFICARE CLASS A CLOSED AT 3275 UP 75 CENTS 9310120031 931012 FINANCING BUSINESS ELSINORE CORP ELSINORE CORP LAS VEGAS SAID IT COMPLETED A PRIVATE PLACEMENT OF 60 MILLION OF 12 1/2 FIRST MORTGAGE NOTES AND WARRANTS DUE IN 2000 THE WARRANTS ARE EXERCISABLE FOR FIVE YEARS AT 550 EACH THE GAMBLING COMPANY SAID PROCEEDS WILL BE USED FOR PAYING DOWN DEBT DEVELOPING TWO NATIVE AMERICAN CASINO PROJECTS AND GENERAL CORPORATE PURPOSES ELSINORE'S STOCK CLOSED UNCHANGED AT 625 IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE 9310120030 931012 BUSINESS BRIEF SCORE BOARD INC SELLER OF SPORTS MEMORABILIA DENIES FRAUD ALLEGATIONS SCORE BOARD INC SAID RECENT ALLEGATIONS THAT ONE OF ITS CABLE SHOPPING PROGRAMS VIOLATES CONSUMER PROTECTION LAWS ARE UNFOUNDED AND UNSUBSTANTIATED THE NEW YORK DEPARTMENT OF CONSUMER AFFAIRS CHARGED LAST WEEK THAT HOME SHOPPING NETWORK INC AND THE PROGRAM COLLECTOR'S SHOWCASE MADE MISLEADING OR FALSE CLAIMS CONCERNING THE RETAIL AND INVESTMENT VALUE OF SCORE BOARD'S PRODUCTS THE CHERRY HILL NJ COMPANY'S STOCK WHICH TRADED AS HIGH AS 35 LAST WEDNESDAY FELL 1 OR 32 TO 30 IN OVERTHECOUNTER TRADING YESTERDAY THE COMPANY WHICH SELLS SPORTS TRADING CARDS AND RELATED MEMORABILIA SAID IT WILL PROVIDE EVIDENCE THAT WILL FULLY REFUTE THE ALLEGATIONS ADDING THAT THE CHARGES WERE BASELESS SCORE BOARD IS SCHEDULED TO APPEAR AT THE CITY AGENCY OCT 15 TO SETTLE THE CHARGES THE DEPARTMENT OF CONSUMER AFFAIRS COULDN'T BE REACHED 9310120029 931012 BUSINESS BRIEF TANDY CORP INCREDIBLE UNIVERSE CHAIN IS EXPECTED TO BREAK EVEN TANDY CORP SAID THE COMPANY'S INCREDIBLE UNIVERSE CHAIN OF ELECTRONICS SUPERSTORES EXPECTS TO REPORT BREAKEVEN RESULTS THIS YEAR AND WILL MAKE A MODEST CONTRIBUTION TO PROFIT IN 1994 JOHN V ROACH CHAIRMAN OF THE FORT WORTH TEXAS RETAILER SAID THE EXPECTED PROFITABILITY IS EARLIER THAN TANDY HAD PROJECTED IT'S AN OVERALL INDICATION OF THE SUCCESS OF THE FORMAT HE SAID THE COMPANY ESTIMATES THAT THE TWO EXISTING STORES IN PORTLAND ORE AND ARLINGTON TEXAS WILL EACH GENERATE 60 MILLION IN REVENUE IN THEIR FIRST YEAR TANDY WHICH ALSO OPERATES RADIO SHACK AND COMPUTER CITY CHAINS YESTERDAY OPENED A THIRD INCREDIBLE UNIVERSE OUTLET OF 185000 SQUARE FEET NEAR DALLAS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE TANDY SHARES CLOSED AT 38625 DOWN 125 CENTS 9310120028 931012 BUSINESS BRIEF LEASEWAY TRANSPORTATION CORP EARNINGS FOR '93 LIKELY TO BE BELOW PREVIOUS PROJECTIONS THE COMPANY BLAMED ONGOING PRODUCTION DELAYS DURING MODEL CHANGEOVERS BY THE COMPANY'S LARGEST CUSTOMER GENERAL MOTORS CORP AND INCREASED COMPETITIVE PRESSURES FROM RAILROADS AND HIGHWAY CARRIERS FOR GENERAL MOTORS' BUSINESS LEASEWAY PROVIDES CUSTOMIZED TRANSPORTATION AND LOGISTICS SUPPORT SERVICES TO MANUFACTURERS DISTRIBUTORS AND RETAILERS LEASEWAY REFUSED TO DISCLOSE THE EXPECTATIONS IT HAD PREVIOUSLY DISCLOSED TO CREDITORS AND THE US BANKRUPTCY COURT WAS CLOSED FOR THE HOLIDAY 9310120027 931012 BUSINESS BRIEF FLEET FINANCIAL GROUP INC PACT IS SET FOR STOCK SWAP TO BUY STERLING BANCSHARES FLEET FINANCIAL GROUP INC SAID IT AGREED TO ACQUIRE STERLING BANCSHARES CORP OF WALTHAM MASS FOR ABOUT 125 MILLION IN STOCK OR 3950 FOR EACH SHARE OF STERLING COMMON STOCK UNDER THE TERMS OF THE AGREEMENT FLEET FINANCIAL WILL EXCHANGE ABOUT 12 OF ITS OWN SHARES FOR EACH OF STERLING'S 31 MILLION SHARES OUTSTANDING IN NATIONAL OVERTHECOUNTER TRADING STERLING SHARES CLOSED AT 3625 UP 575 OR 19 FLEET BASED IN PROVIDENCE RI SAID THE TRANSACTION SHOULD BE COMPLETED IN SPRING OF 1994 FLEET SHARES CLOSED AT 34 DOWN 125 CENTS IN NEW YORK STOCK EXCHANGE TRADING FOR THE FIRST SIX MONTHS OF 1993 ENDED JUNE 30 STERLING REPORTED NET INCOME OF 39 MILLION OR 130 A SHARE THE ACQUISITION IS SUBJECT TO REGULATORY AND STERLING SHAREHOLDER APPROVALS 9310120026 931012 BUSINESS BRIEF CYPRUS MINERALS CO VENTURE WITH LAC MINERALS WINS CHILE COPPER MINE BID CYPRUS MINERALS CO SAID ITS PARTNERSHIP WITH LAC MINERALS LTD OF TORONTO HAS WON THE BID TO DEVELOP THE EL ABRA COPPER DEPOSIT IN CHILE WITH THE CORP NACIONAL DEL COBRE DE CHILE KNOWN AS CODELCO THE ENGLEWOOD COLO COMPANY SAID THE BID WAS BASED ON PRODUCTION OF ABOUT 225000 TONS A YEAR FOR 20 YEARS AT A PRODUCTION COST OF ABOUT 40 CENTS A POUND THE MINE WILL REQUIRE AN INVESTMENT OF ABOUT 1 BILLION CYPRUS SAID CYPRUS AND LAC EACH WILL HOLD 50 OF THE CYPRUS LAC MINERALS CO THE COMPANIES' BID FOR 51 OF THE PROJECT INCLUDED AN OFFER OF 404 MILLION AT CLOSING AND A 151 MILLION EQUITY CONTRIBUTION TO THE PROJECT ON BEHALF OF CODELCO IN ADDITION THE COMPANIES WILL RAISE ABOUT 700 MILLION IN NONRECOURSE FINANCING TO DEVELOP THE PROJECT CYPRUS SAID 9310120025 931012 BUSINESS BRIEF FRUIT OF THE LOOM INC FIRM TO PAY 1364 MILLION TO BUY SALEM SPORTSWEAR FRUIT OF THE LOOM INC JUMPING FURTHER INTO THE FASTGROWING SPORTS APPAREL BUSINESS AGREED TO ACQUIRE SALEM SPORTSWEAR CORP FOR 1275 A SHARE OR 1364 MILLION IN RECENT YEARS CHICAGOBASED FRUIT OF THE LOOM HAS BEEN EXPANDING ITS BUSINESS IN THE US AND ABROAD BEYOND UNDERWEAR SALEM MAKES LICENSED APPAREL INCLUDING TSHIRTS SWEATSHIRTS AND SHORTS WITH LOGOS FROM PROFESSIONAL AND COLLEGE TEAMS FOR THE YEAR ENDED AUG 31 SALEM HAD SALES OF 1198 MILLION FRUIT'S 1992 SALES WERE 186 BILLION UNDER THE AGREEMENT A UNIT OF FRUIT OF THE LOOM WILL MAKE A TENDER OFFER FOR SALEM'S 107 MILLION COMMON SHARES OUTSTANDING ON A FULLY DILUTED BASIS SALEM BASED IN HUDSON NH SAID STOCKHOLDERS HOLDING ABOUT 49 OF ITS COMMON SHARES HAVE AGREED TO TENDER THEIR STOCK AND THAT ITS BOARD HAS APPROVED THE ACQUISITION IN NATIONAL OVERTHECOUNTER TRADING SALEM'S STOCK JUMPED 325 TO 1250 WHILE FRUIT'S SHARES FELL 75 CENTS TO 30375 IN AMERICAN STOCK EXCHANGE TRADING 9310120024 931012 WHO'S NEWS JANE HIRSH SAW THE FUTURE AND IT WAS GENERIC BY SUZANNE ALEXANDER STAFF REPORTER OF THE WALL STREET JOURNAL JANE HIRSH FOUNDED COPLEY PHARMACEUTICAL INC 21 YEARS AGO BECAUSE SHE WANTED TO WORK AT A PLACE WHERE SHE COULD BRING HER CHILDREN NOW AFTER BUILDING THE COMPANY INTO A GENERIC DRUG GIANT MRS HIRSH COPLEY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS AGREED TO SELL A 51 STAKE TO THE HOECHST CELANESE CORP UNIT OF GERMANY'S HOECHST AG FOR 546 MILLION IN CASH THE DEAL VALUES HER FAMILY'S 37 STAKE 43 MILLION SHARES AT 2369 MILLION HOWEVER IN OVERTHECOUNTER TRADING YESTERDAY COPLEY FELL 2875 TO 46875 REFLECTING ANALYSTS' COMMENTS THAT HOECHST IS OVERPAYING BASED ON THAT PRICE MRS HIRSH'S STAKE IS WORTH 2016 MILLION MRS HIRSH WILL REMAIN IN HER POSITIONS WITH THE COMPANY NEVER IN MY WILDEST DREAMS DID I EVER IMAGINE THIS SAYS MRS HIRSH WHO AT 51 IS NOW ONE OF AMERICA'S WEALTHIEST WOMEN ENTREPRENEURS MRS HIRSH'S WINDFALL ISN'T LUCK ANALYSTS SAY SHE SAW THE POTENTIAL FOR GENERIC DRUGS LONG BEFORE MOST PHARMACEUTICAL INDUSTRY EXPERTS WITH BUSINESS AND MEDICAL DEGREES AFTER GRADUATING FROM UNIVERSITY OF CONNECTICUT'S PHARMACY SCHOOL MRS HIRSH SPENT NINE YEARS AS A HOSPITAL PHARMACIST WHEN SHE STARTED COPLEY SHE BROUGHT THAT BACKGROUND AS WELL AS A CHILDHOOD OBSERVING THE SEPARATE PHARMACEUTICAL COMPANIES OWNED BY HER FATHER AND GRANDFATHER I THINK SHE HAS SIGNIFICANT APPRECIATION FOR WHAT THE AMERICAN PUBLIC WANTS AND WHAT'S GOING ON IN THOSE HOSPITALS SAYS TINA RIZOPOULOSVALAURI SENIOR HEALTHCARE ANALYST AT PAINEWEBBER INC MS RIZOPOULOSVALAURI RECENTLY SPENT A DAY WATCHING MRS HIRSH WORK AT COPLEY'S HEADQUARTERS IN CANTON MASS MY IMPRESSION WAS WOW' NOTHING GETS PAST THIS WOMAN SHE INTERACTS REGULARLY WITH ALL THE PEOPLE WHO WORK WITH HER NOTHING IS BENEATH HER SHE HAS TREMENDOUS RESPECT FROM ALL THE PEOPLE IN HER COMPANY MRS HIRSH HEADS A COMPANY THAT IS EXTREMELY PROFITABLE AND GROWING EXPLOSIVELY IN THE SIX MONTHS ENDED JULY 31 IT REPORTED NET INCOME OF 94 MILLION OR 51 CENTS A SHARE UP 62 FROM THE YEAR BEFORE SALES FOR THE FIRST HALF MORE THAN DOUBLED TO 405 MILLION FROM 199 MILLION IN FISCAL 1992 SALES GREW 80 AND ANALYSTS EXPECT THEM TO RISE ANOTHER 73 THIS YEAR TO 90 MILLION MRS HIRSH BEGAN HER CAREER IN 1966 WORKING TWO JOBS BECAUSE PHARMACISTS WEREN'T PAID A LOT OF MONEY THEN SHE WORKED 40 HOURS A WEEK AT MASSACHUSETTS GENERAL HOSPITAL AND 20 HOURS A WEEK AT THE SHRINER BURNS INSTITUTE ANXIOUS TO START A FAMILY AT 32 MRS HIRSH QUIT HER HOSPITAL JOBS AND LAUNCHED COPLEY PHARMACEUTICAL WITH THE FINANCIAL SUPPORT OF HER HUSBAND MARK HIRSH A PERIODONTIST AND AT THE TIME A TUFTS UNIVERSITY PROFESSOR MRS HIRSH ESTABLISHED COPLEY PHARMACEUTICAL MR HIRSH IS NOW EXECUTIVE VICE PRESIDENT AND A DIRECTOR AT COPLEY MRS HIRSH'S BROTHER THEODORE L IORIO A PHARMACIST WHO HAS A BUSINESS DEGREE WAS ALSO A COFOUNDER HE IS NOW VICE PRESIDENT PHARMACEUTICAL ENGINEERING THIS WAS THE ONLY WAY I COULD HAVE A CRIB IN MY OFFICE THE BIGGEST CHALLENGE AS A PROFESSIONAL WAS MOTHERING SAYS MRS HIRSH WHO HAS RAISED SIX CHILDREN INCLUDING THREE FROM A FORMER MARRIAGE OF MR HIRSH COPLEY PHARMACEUTICAL STARTED OUT DEVELOPING ALL TYPES OF PRODUCTS INCLUDING PLANT FOOD TABLETS AND COLORING AND PRESERVATIVE TABLETS FOR FRUIT JUICES ANY KIND OF BUSINESS THAT CAME ALONG WE TRIED SAYS MRS HIRSH BUT MRS HIRSH SAYS SHE ALWAYS KNEW THE HEALTHCARE INDUSTRY WOULD MOVE IN THE DIRECTION OF LOWCOST DRUG ALTERNATIVES I KNOW WHAT IT IS TO BE SICK SHE SAYS I SPENT NINE YEARS LOOKING AT VERY ILL PEOPLE WONDERING HOW THEY WERE GOING TO PAY FOR TREATMENT COPLEY GREW SLOWLY IN THE 1970S DEVELOPING DRUG DELIVERY SYSTEMS BUT IN 1984 AFTER THE GOVERNMENT PASSED THE DRUG RICE COMPETITION ACT WHICH ENCOURAGED DEVELOPMENT OF GENERIC VERSIONS OF PHARMACEUTICALS AFTER THEIR PATENT PROTECTION EXPIRED THE COMPANY ENTERED THE NEW MARKET SALES ROSE AT A COMPOUND RATE OF 45 FROM 31 MILLION IN THE YEAR ENDED JAN 31 1986 ANALYSTS SAY COPLEY HAS A STRONG RECORD FOR GETTING APPROVALS FOR DRUGS FROM THE FOOD AND DRUG ADMINISTRATION IN THE PAST 23 MONTHS THE FIRM HAS RECEIVED 23 APPROVALS FOR NEW PRODUCTS BRINGING ITS TOTAL NUMBER OF PRODUCT OFFERINGS TO 92 GENERIC PRESCRIPTION AND OVERTHECOUNTER DRUGS COPLEY PHARMACEUTICAL SAYS IT HAS HISTORICALLY SPENT 11 TO 15 OF REVENUES ON RESEARCH AND DEVELOPMENT COMPARED TO A GENERIC DRUG INDUSTRY AVERAGE OF 7 TO 8 IN THIS BUSINESS WHAT YOU NEED IS A PORTFOLIO OF PRODUCTS MRS HIRSH SAYS YOU HAVE TO HAVE A FERRIS WHEEL OF THEM THAT YOU CAN CONTINUOUSLY OFFER IRONICALLY MRS HIRSH'S FATHER WHO OPERATED A VITAMIN MANUFACTURING COMPANY IN THE SOUTH BOSTON NEIGHBORHOOD OF BOSTON DIDN'T ENCOURAGE HER TO GET INTO THE BUSINESS I DON'T THINK HE HAD ANY PLANS FOR ME TO JOIN HIS BUSINESS SHE SAYS IN THE TRADITION OF PEOPLE IN THE 1960S HE PLANNED FOR ME TO GET MARRIED HER FATHER DIED LAST YEAR 9310120023 931012 WHO'S NEWS DNX CORP DNX CORP PRINCETON NJ THIS LIFE SCIENCES COMPANY APPOINTED DALE A SMITH 56 YEARS OLD A DIRECTOR INCREASING THE BOARD TO 10 MR SMITH IS GROUP VICE PRESIDENT OF BAXTER INTERNATIONAL INC A HEALTHCARE PRODUCTS CONCERN 9310120022 931012 BUSINESS BRIEF TYCO TOYS INC COMPANY SEES NET INCOME SHARPLY LOWER' FOR QUARTER TYCO TOYS INC UNABLE TO DUPLICATE THE STRING OF HITS IT PRODUCED IN YEARS PAST SAID NET INCOME FOR THE THIRD QUARTER WILL BE SHARPLY LOWER THAN THE 157 MILLION OR 51 CENTS A SHARE REPORTED A YEAR EARLIER THE MOUNT LAUREL NJ COMPANY SAID IT EXPECTS TO REPORT FLAT SALES OF 2381 MILLION THE MAKER OF ARIEL MERMAID DOLLS CRASH DUMMIES AND OTHER FORMER BLOCKBUSTER TOYS HASN'T COME UP WITH A BIG HIT TO SUSTAIN MOMENTUM THIS YEAR ANALYSTS SAID IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY TYCO SHARES PLUNGED 1125 OR 87 TO 1175 THE ANNOUNCEMENT CAUGHT ANALYSTS BY SURPRISE SEAN MCGOWAN ANALYST FOR GERARD KLAUER MATTISON & CO DOWNGRADED HIS THIRDQUARTER EARNINGS ESTIMATES TO FIVE CENTS TO 10 CENTS A SHARE FROM 20 CENTS TO 30 CENTS A SHARE PREVIOUSLY HE PREDICTS TYCO WILL POST A LOSS OF 25 CENTS A SHARE FOR 1993 THAT COMPARES WITH NET INCOME OF 60 CENTS A SHARE FOR 1992 RICHARD E GREY CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THAT BASED ON A FAVORABLE RESPONSE FROM OUR MAJOR CUSTOMERS TO OUR 1994 PRODUCT LINE TYCO IS CONFIDENT ABOUT THE LONGTERM OUTLOOK 9310120021 931012 TECHNOLOGY MOTOROLA'S NET DOUBLES TOPS ANALYSTS' VIEWS BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL MOTOROLA CORP REPORTED THAT THIRDQUARTER NET INCOME DOUBLED TO 254 MILLION ON SURGING SALES OF ITS WIRELESS COMMUNICATIONS PRODUCTS AND SEMICONDUCTORS THE RESULTS CONTINUE A STREAK OF BLOCKBUSTER QUARTERS FOR THE SCHAUMBURG ILL ELECTRONICS CONCERN WHICH IN THE PAST FEW YEARS HAS ESTABLISHED ITSELF AS THE GLOBAL FRONTRUNNER IN CELLULAR PHONES AS WELL AS A LEADER IN OTHER WIRELESS TECHNOLOGIES AND SEMICONDUCTORS AMONG OTHER PRODUCTS THE THIRDQUARTER PROFIT AMOUNTING TO 87 CENTS A FULLY DILUTED SHARE SAILED PAST ANALYSTS' EARNINGS PROJECTIONS OF ABOUT 80 CENTS A SHARE SALES ROSE 30 TO 44 BILLION FORM 34 BILLION A YEAR EARLIER BOTH THE PROFIT AND SALES FIGURES ARE ALLTIME HIGHS FOR MOTOROLA IT'S MORE OF THE SAME OBSERVED MEL PHELPS SENIOR TECHNOLOGY ANALYST FOR HAMBRECHT & QUIST WHO HAD PROJECTED NET INCOME OF 83 CENTS A SHARE ON SALES OF ABOUT 398 BILLION THEY BEAT MY NUMBERS EASILY THESE GUYS ARE PHENOMENAL IN LAST YEAR'S THIRD QUARTER MOTOROLA EARNED 127 MILLION OR 46 CENTS A FULLY DILUTED SHARE THE RESULTS WERE ANNOUNCED AFTER THE MARKET CLOSED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MOTOROLA STOCK CLOSED AT 9850 DOWN 2 OR 2 MOTOROLA CITED STRONG GROWTH IN ALMOST ALL ITS BUSINESS SEGMENTS SALES IN ITS CHIP DIVISION SURGED 31 TO 151 BILLION IN THE QUARTER WITH PARTICULARLY STRONG GROWTH IN ASIA SALES IN ITS GENERAL SYSTEMS SECTOR IN WHICH CELLULAR PHONES ARE THE MAIN COMPONENT JUMPED 43 TO 135 BILLION ITS COMMUNICATION SEGMENT WHICH INCLUDES MOTOROLA'S TWOWAY RADIOS AND PAGING SYSTEMS POSTED A 20 INCREASE IN SALES TO 118 BILLION THE COMPANY ALSO BENEFITED FROM ITS MUCHTOUTED IRIDIUM PROJECT AN AMBITIOUS PLAN TO RING THE GLOBE WITH SATELLITES FOR A WORLDWIDE CELLULAR PHONE SYSTEM INITIAL PAYMENTS FROM INVESTORS IN THE PROJECT HELPED MOTOROLA'S GOVERNMENT AND SYSTEMS TECHNOLOGY GROUP RECORD AN UNSPECIFIED PROFIT COMPARED WITH A LOSS LAST YEAR FOR THE FIRST NINE MONTHS OF THE YEAR MOTOROLA EARNED 682 MILLION OR 240 A FULLY DILUTED SHARE COMPARED WITH 272 MILLION OR 101 A SHARE A YEAR EARLIER INCLUDING A 123 MILLION CHARGE FOR AN ACCOUNTING CHANGE SALES FOR THE NINE MONTHS JUMPED 25 TO 12 BILLION FROM 959 BILLION 9310120020 931012 HEARD ON THE STREET HEALTHCARE FIRMS FACE CHECKUP FOR MERGER POTENTIAL BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL WITH MERGER MANIA SWEEPING THROUGH THE HEALTHCARE INDUSTRY WALL STREET IS SCURRYING TO PREDICT WHICH COMPANIES MIGHT BE FUTURE CANDIDATES FOR TAKEOVERS OR BUSINESS COMBINATIONS WE'VE BEEN HAVING A DEAL A DAY AND IT'S GOING TO GET EVEN BUSIER PREDICTS LEONARD YAFFE A HEALTHCARE ANALYST AT MONTGOMERY SECURITIES TODAY MR YAFFE PLANS TO BRIEF CLIENTS AND HIS SALES FORCE ON HIS TOP 10 TAKEOVER CANDIDATES INCLUDING SEVERAL CALIFORNIABASED HEALTHMAINTENANCE ORGANIZATIONS ALREADY THIS YEAR 269 HEALTHCARE ACQUISITIONS VALUED AT A TOTAL OF 153 BILLION HAVE BEEN ANNOUNCED ACCORDING TO SECURITIES DATA CO THAT'S MORE THAN DOUBLE THE INDUSTRY'S DEAL VOLUME FOR ALL OF LAST YEAR WHEN 335 ACQUISITIONS TOTALING 72 BILLION WERE ANNOUNCED ONE OF THE PRIME CANDIDATES FOR MORE TAKEOVERS ANALYSTS SAY IS THE HMO FIELD ESPECIALLY IN CROWDED REGIONAL MARKETS SUCH AS CALIFORNIA EXPECTATIONS ALSO EXIST FOR MORE CONSOLIDATION AMONG HOSPITAL CHAINS IN THE WAKE OF TWO JUMBO ACQUISITION ACCORDS BY COLUMBIA HEALTHCARE CORP SOME ANALYSTS SEE DEAL POTENTIAL IN THE MEDICALEQUIPMENT AND SPECIALIZEDSERVICES AREA TOO PART OF THE IMPETUS FOR TAKEOVERS COMES FROM PRESIDENT CLINTON'S HEALTH PLAN WHICH CALLS FOR SETTING UP LARGE HEALTH ALLIANCES THAT WILL BUY MEDICAL COVERAGE FOR AS MANY AS ONE MILLION PEOPLE AT A TIME IT'S CLEAR THAT THE PREFERENCE WILL BE FOR PLAYERS THAT HAVE STRENGTH OF NUMBERS AND CRITICAL MASS SAYS LEO SWERGOLD HEAD OF HEALTHCARE INVESTMENT BANKING FOR FURMAN SELZ INC BUT CONSULTANTS AND INVESTMENT BANKERS ARE BEATING THE DRUMS FOR DEALS TOO AFTER ALL THAT'S HOW THESE ADVISERS GET THEIR FEES THE HEALTHCARE CONSULTING ARM OF ACCOUNTING FIRM KPMG PEAT MARWICK SAID IN A RECENT REPORT THAT CLIENTS SHOULD THINK ABOUT WAYS TO SECURE STRATEGIC ALLIANCES PARTNERSHIPS OR EXCLUSIVE CONTRACTING ARRANGEMENTS CREATING VERTICALLY INTEGRATED NETWORKS THAT WILL MAKE IT TOUGH FOR RIVALS TO COMPETE THE TAKEOVER BRIGADES ARE LIKELY TO CONCENTRATE AT LEAST SOME OF THEIR ATTENTION ON THE CALIFORNIA HMO MARKET WHERE 44 COMPANIES CURRENTLY COMPETE FOR BUSINESS LIKE MANY ANALYSTS MONTGOMERY'S MR YAFFE EXPECTS THAT NUMBER TO SHRINK SIGNIFICANTLY DURING THE NEXT FEW YEARS MR YAFFE WOULDN'T CONFIRM YESTERDAY WHICH HMOS ARE ON HIS TARGET LIST BUT IN RECENT WEEKS HE HAS TOLD CLIENTS TO WATCH FHP INTERNATIONAL FOUNDATION HEALTH TAKECARE AND MAXICARE ON THE BELIEF THAT AT LEAST ONE OF THOSE MIGHT BE ABSORBED IN A TAKEOVER IN THE NEXT 18 MONTHS OFFICIALS AT THOSE COMPANIES DON'T DISPUTE THAT CONSOLIDATION IS COMING TO THE INDUSTRY THEY JUST PREFER TO THINK OF THEMSELVES AS SURVIVORS OUR COMPANY ISN'T FOR SALE SAYS JEFF ELDER CHIEF FINANCIAL OFFICER OF FOUNDATION HEALTH HISTORICALLY WE'VE BEEN AN ACQUIRER RATHER THAN A TARGET HE ADDS A TAKECARE SPOKESMAN SAYS WE FEEL WE AREN'T A TARGET FOR BEING ACQUIRED RATHER WE'VE BEEN ACTIVE AND CONTINUE TO BE ACTIVE IN THE ACQUISITION MODE OURSELVES AN FHP SPOKESWOMAN SAYS THE COMPANY ISN'T FOR SALE MAXICARE SAYS IT NEVER COMMENTS ON TAKEOVER RUMORS IN THE HOSPITAL SECTOR ANALYSTS FIGURE THE MERGER SPREE HAS AT LEAST A BIT FURTHER TO RUN BECAUSE MOST HOSPITALS ARE NONPROFITS THAT DON'T HAVE PUBLICLY TRADED STOCK INVESTORS MAY BE UNABLE TO TAKE A STAKE IN MOST CONSOLIDATIONS STILL SALOMON BROTHERS ANALYST MARGO VIGNOLA FIGURES THAT ONE PUBLICLY TRADED HOSPITAL CHAIN NATIONAL MEDICAL ENTERPRISES COULD BE A BREAKUP CANDIDATE CHRISTI SULZBACH SENIOR VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL AT NATIONAL MEDICAL TRIED TO COOL SUCH SPECULATIONBUT NOT DISMISS IT ENTIRELY WE'VE SAID WE ARE LOOKING AT A VARIETY OF OPTIONS WITH RESPECT TO OUR ANCILLARY SERVICES SHE SAYS THESE SERVICES INCLUDE CHILDCARE FACILITIES REHABILITATION CENTERS AND PSYCHIATRIC HOSPITALS OUR OPTIONS COULD INCLUDE PURCHASES AND SALES ALSO ATTRACTING INTEREST IS THE GENERIC DRUG SECTOR FOLLOWING THE WEEKEND ANNOUNCEMENT THAT HOECHST CELANESE HAS AGREED TO BUY A 51 STAKE IN COPLEY PHARMACEUTICAL FOR 548 MILLION DAVID ALGER A PORTFOLIO MANAGER AT FRED ALGER MANAGEMENT SAYS HE HAS BEEN HEARING TAKEOVER SPECULATION ABOUT TWO OTHER GENERIC DRUG COMPANIES MYLAN LABORATORIES AND ZENITH LABORATORIES MR ALGER'S FIRM IS AMONG THE BIGGEST SHAREHOLDERS IN COPLEY AND HE FIGURES THAT WITH SEVERAL TOP BRANDNAME DRUGS GOING OFF PATENT IN THE NEXT TWO YEARS OTHER ACQUIRERS MAY BE DRAWN TO THE GENERICDRUG BUSINESS SOME ANALYSTS ALSO REGARD A STRATEGIC ALLIANCE LAST WEEK BETWEEN COLUMBIA HEALTHCARE AND MEDICAL CARE AMERICA AS A POSSIBLE PRELUDE TO AN ACQUISITION COLUMBIA IS ABOUT TO BECOME THE LARGEST US HOSPITAL CHAIN MEDICAL CARE IS A MAJOR OWNER OF OUTPATIENT SURGICAL CENTERS OVERALL EXCITEMENT ABOUT HEALTHSYSTEM REFORM HAS BLOWN THE LID OFF HEALTHCARE M&A SAYS FURMAN SELZ'S MR SWERGOLD HE SAYS HE IS TELLING THE DOZEN OR SO HEALTHCARE INVESTMENT BANKERS WHO WORK FOR HIM I WANT TO HEAR EVERY IDEA YOU HAVE AS CRAZY AS IT MAY SEEM IT MAY NOT BE CRAZY ANYMORE STILL BEATING THEIR HEADS AGAINST A WALL SHORT SELLERS SUSTAINED A 33 LOSS IN THE THIRD QUARTER THEIR SECOND QUARTERLY LOSS IN A ROW AND THEIR EIGHTH DURING THE PAST 12 QUARTERS SO SAYS THE ROCKBRIDGE SHORT SELLERS INDEX COMPILED BY ROCKBRIDGE PARTNERS A CHARLOTTE NC FIRM THAT PLACES MONEY WITH SHORTSELLING MONEY MANAGERS THE INDEX TRACKS THE RESULTS OF 20 MAJOR SHORT SELLERS SHORTS BORROW STOCK AND SELL IT HOPING THE PRICE WILL DECLINE EVENTUALLY THEY MUST BUY SHARES TO REPLACE THE BORROWED ONES BUT IF THE STOCK FALLS IN THE MEANTIME THEY PROFIT MICHAEL R LONG PRESIDENT OF ROCKBRIDGE SAYS THAT STRENGTH IN GAMBLING RESTAURANT AND BROKERAGE STOCKS AMONG OTHERS HURT THE SHORTS SHORTS DID MAKE SOME GAINS HOWEVER BETTING AGAINST SELECTED MEDICAL AND COMPUTER STOCKS NO DEAL FINANCIER CARL ICAHN IS SHELVING THE PROPOSED JUNKBOND OFFERINGS FOR ACF INDUSTRIES THE RAILCAR MANUFACTURING AND LEASING COMPANY HE OWNS THAT WERE TO BE PART OF AN ANTICIPATED REFINANCING TO EXTRACT 1 BILLION FROM THE CONCERN INSTEAD OF RAISING 800 MILLION IN PUBLIC JUNK SAYS A BANKER FAMILIAR WITH THE DEAL MR ICAHN LIKELY WILL BORROW ONLY ABOUT 400 MILLION SECURED BY ACF RAILCARS MR ICAHN OPTED AGAINST THE BIGGER FINANCING BECAUSE INTEREST RATES ON JUNKBOND OFFERINGS HAVE RISEN SHARPLY SINCE THIS SUMMER WHEN HE FIRST CONTEMPLATED THE DEAL SHORTTERM BORROWING AT FLOATING INTEREST RATES FROM BANKS OR IN THE FORM OF AN EQUIPMENT TRUST CERTIFICATE WILL COST ABOUT 7 INSTEAD OF 11 OR SO DEMANDED BY JUNKBOND BUYERS MR ICAHN SAYS HE ANTICIPATES SAVING AT LEAST 15 MILLION A YEAR IN INTEREST PAYMENTS JOHN R DORFMAN AND LAURA JERESKI CONTRIBUTED TO THIS ARTICLE SOME SECURITIES ANALYSTS REGARD THE FOLLOWING EIGHT HEALTHCARE COMPANIES AS TAKEOVER CANDIDATES SEVERAL COMPANY REPRESENTATIVES DISAGREE BUT THAT ISN'T STOPPING WALL STREET FROM TRYING TO PREDICT THE NEXT DEAL 9310120019 931012 LEISURE & ARTS THE GALLERY RUBENS AND HIS CIRCLE IN A FRESH LIGHT BY ROGER KIMBALL BOSTON THE AGE OF RUBENS AT THE MUSEUM OF FINE ARTS HERE UNTIL JAN 2 IS AMAZINGLY ENOUGH THE FIRST LARGESCALE INTERNATIONAL EXHIBITION DEVOTED TO THE LUSH FERVENT PAINTING OF THE PREEMINENT FLEMISH BAROQUE MASTER AND HIS CIRCLE TO COME TO THE US CONSISTING OF 130 PAINTINGS 30 ATTRIBUTED TO RUBENS HIMSELF THIS AMBITIOUS SHOW DRAWS ON THE COLLECTIONS OF SOME 50 INSTITUTIONS WORLDWIDE TO PROVIDE BOTH SNAPSHOTS OF IMPORTANT SIDES OF RUBENS'S ART AND A LENS THROUGH WHICH TO VIEW THE SPIRITUAL AND AESTHETIC AMBITIONS OF HIS MILIEU IN 17THCENTURY ANTWERP IT IS EASY FOR US TO FORGET HOW DEEPLY THE TWO THE AESTHETIC AND THE SPIRITUAL WERE INTERTWINED FOR RUBENS THE ABUNDANCE OF PINK FLESH WE ASSOCIATE WITH HIM THE WHOLE DOMAIN OF THE RUBENESQUE MAY SEEM TO LOOK FORWARD TO THE LIGHT PLAYFUL SUMPTUOUSNESS OF SUCH PAINTERS AS BOUCHER AND FRAGONARD AND SO IT DOES PARTLY BUT AS PETER C SUTTON CURATOR OF EUROPEAN PAINTINGS AT THE MFA EXPLAINS IN HIS EXHAUSTIVE CATALOG FOR THE SHOW THE AGE OF RUBENS CANNOT BE UNDERSTOOD WITHOUT APPRECIATING THE EXTENT TO WHICH RUBENS WAS FIRST OF ALL A PAINTER OF THE COUNTERREFORMATION A DEVOUT CATHOLIC HIMSELF RUBENS PUT HIS GENIUS AND THE CONSIDERABLE RESOURCES OF HIS LARGE WORKSHOP IN THE SERVICE OF A CHURCH EAGER TO ROLL BACK THE CONQUESTS MADE BY PROTESTANTISM IN THE PREVIOUS CENTURY IN MANY WAYS IT WAS A REMARKABLY SUCCESSFUL CAMPAIGN IN 1599 HALF OF EUROPE WAS PROTESTANT BY 1650 ONLY 20 WAS WHERE PROTESTANTISM DISPLAYED A SUSPICION EVEN A HOSTILITY TOWARD THE AMBITION OF ART TO ARTICULATE RELIGIOUS TRUTHS THE COUNCIL OF TRENT HAD DECREED IN 1563 THAT ART WAS TO BE ENLISTED IN THE BATTLE TO WIN CONVERTS BY APPEALING AS DIRECTLY AND IMMEDIATELY AS POSSIBLE TO THE SENSES AND IMAGINATION THE TASK WAS AS MR SUTTON PUTS IT TO CREATE AN ART THAT WOULD AT ONCE EDIFY CONVERT AND AROUSE EVER GREATER RELIGIOUS FERVOR RUBENS AND MANY IN HIS COTERIE THREW THEMSELVES WHOLEHEARTEDLY INTO THIS ENTERPRISE THIS IS A POINT MADE REPEATEDLY BY MR SUTTON AND OTHERS HE ENLISTED TO CONTRIBUTE TO THE CATALOG CURIOUSLY THOUGH IT IS AN ELEMENT THAT IS SOMEWHAT UNDERSTATED IN THE EXHIBITION ITSELF THERE ARE SOME POWERFUL RELIGIOUS PICTURES IN THE SHOW RUBENS'S OWN LAMENTATION 1614 FOR EXAMPLE WITH ITS POWERFUL IMAGE OF MARY CLOSING THE EYES OF HER DEAD SON OR THE BETRAYAL OF CHRIST A SWIRLING NIGHTMARE SCENE BY RUBENS'S MOST PRECOCIOUS PUPIL ANTHONY VAN DYCK BUT RUBENS'S GRANDEST RELIGIOUS PICTURES INCLUDING ABOUT 60 ALTARPIECES THAT HIS STUDIO TURNED OUT ARE TOO LARGE TO TRAVEL AND SO THE CRUSADING SIDE OF HIS ART IS PRESENT MOSTLY BY IMPLICATION WHAT THIS EXHIBITION DOES EXCEL AT HOWEVER IS GIVING US A NEW SENSE OF THE EXTRAORDINARILY RICH AND VARIED RANGE OF PAINTING IN THE AGE OF RUBENS IN FACT SOME OF THE GREATEST PAINTINGS IN THE SHOW ARE BY RUBENS'S PEERS AND COLLEAGUES THERE ARE FOR EXAMPLE SEVERAL MARVELOUS WORKS BY VAN DYCK FAMILY PORTRAIT CIRCA 1619 FROM THE HERMITAGE IS AN UNEXCELLED MASTERPIECE AND BY JACOB JORDAENS BY RUBENS HIMSELF WE FIND SUCH MEMORABLE PAINTINGS AS PORTRAIT OF MULAY AHMED WHICH LOOKS FORWARD TO DELACROIX IN ITS SYMPATHETIC ORIENTALISM AND THE TERRIFYINGLY GRAPHIC HEAD OF MEDUSA WITH ITS SQUIRMING NEST OF SNAKES COURTESY OF THE ANIMAL PAINTER FRANS SNYDERS ONE OF THE HIGH POINTS OF THE EXHIBITION IS UNDOUBTEDLY THE GARDEN OF LOVE EARLY 1630S NEVER BEFORE SEEN IN THIS COUNTRY THIS MUNIFICENT IDEALIZED SCENE OF COURTSHIP AND LOVE FROM THE PRADO IS ONE OF RUBENS'S MOST SATISFYING AND COMPLEX WORKS INDEED WE MUST BE GRATEFUL TO THIS EXHIBITION ABOVE ALL FOR PRESENTING RUBENS'S ACHIEVEMENT IN A FRESH LIGHT THOUGH AN INTERNATIONAL SUPERSTAR IN HIS OAY AND AN IMPORTANT RESOURCE FOR ARTISTS FOR GENERATIONS TO COME RUBENS HAS STOOD AT THE MARGINS OF POPULAR TASTE FOR DECADES WHAT MR SUTTON CALLS THE SKELETAL FASHIONS OF VOGUE' HAVE DONE MUCH TO DIMINISH ADMIRATION FOR RUBENS'S AMPLE NUDES BEGINNING IN THE 19TH CENTURY MANY COMMENTATORS CONCLUDED THAT THERE WAS SOMETHING A BIT DOWNMARKET ABOUT RUBENS THE AMERICAN PAINTER THOMAS EAKINS IN A BURST OF UNPUNCTUATED RANCOR CALLED RUBENS THE NASTIEST MOST VULGAR NOISY PAINTER THAT EVER LIVED HIS PEOPLE NEVER HAVE ANY BONES HIS PICTURES ALWAYS PUT ME IN MIND OF CHAMBER POTS AND I WOULD NOT BE SORRY IF THEY WERE ALL BURNED HENRY JAMES PUT THE CASE MORE JUDICIOUSLY WHEN HE OBSERVED THAT RUBENS BELONGS CERTAINLY TO THE SMALL GROUP OF THE WORLD'S GREATEST PAINTERS BUT HE IS IN A CERTAIN WAY THE VULGARIST OF THE GROUP THE AGE OF RUBENS PROVIDES A USEFUL CORRECTIVE TO SUCH VIEWS FOR ONE THING IT UNDERSCORES RUBENS'S DEEP ROOTS IN THE ITALIAN MASTERS ESPECIALLY IN THE EXQUISITE COLOR FEASTS OF TITIAN AND IT IS WORTH NOTING TOO THAT IF THERE IS A BLOWSY QUALITY TO SOME OF HIS NUDES MUCH OF RUBENS'S PAINTING EXHIBITS A SINEWY TOUGHNESS AND RESOLVE THAT IS POSITIVELY UNRUBENESQUE ONE SUCH PAINTING IS PROMETHEUS BOUND COMPLETED IN 1618 THIS REMARKABLY TAUT AND DRAMATIC WORK IS A TOUR DE FORCE OF FORESHORTENING THE GREEK TITAN CHAINED TO THE CAUCASUS SEEMS TO SPILL HEAD FIRST OUT OF THE CANVAS AN AVENGING EAGLE SENT BY ZEUS TO PUNISH PROMETHEUS FOR BRINGING MANKIND THE GIFT OF FIRE SAVAGELY GRIPS HIS HEAD AND GROIN WHILE TEARING AT HIS LIVER PROMETHEUS BOUND ALSO ILLUSTRATES ANOTHER IMPORTANT ASPECT OF THE AGE OF RUBENS THE EXTENT TO WHICH MANY WORKS OF ART WERE COLLABORATIVE EFFORTS IF THE FIGURE OF PROMETHEUS IS A MODEL OF PHYSICAL ANGUISH HEROICALLY BORNE THE EAGLE IS A MASTERPIECE OF ANIMAL FURY AND THE EAGLE WAS PAINTED NOT BY RUBENS BUT BY HIS COLLEAGUE SNYDERS LIKE MANY ARTISTS RUBENS EMPLOYED A GROUP OF APPRENTICES TO HELP EXECUTE THE IDEAS HE WOULD OUTLINE IN MORE OR LESS DETAILED SKETCHES HIS GENIUS CONSISTED FIRST OF ALL IN PROVIDING THE PLAN AND THEN IN RETOUCHING THE PAINTING TO CORRECT ANY INFELICITIES INTRODUCED BY ASSISTANTS HE WAS UNUSUAL ONLY IN THE SIZE AND PRODUCTIVITY OF HIS WORKSHOP WHICH FROM THE 1620S UNTIL THE MASTER'S DEATH IN 1640 PURVEYED PAINTINGS TO THE MAJOR COURTS OF EUROPE COURT LIFE WAS SOMETHING RUBENS WAS EXCEPTIONALLY WELLEQUIPPED TO UNDERSTAND HAVING PERFORMED MANY DIPLOMATIC MISSIONS FOR THE ARCHDUKES ALBERT AND ISABELLA FROM THE AGE OF 26 AND IT IS YET ANOTHER FACET OF THIS EXHIBITION TO REMIND US OF HOW ROBUST AND VERSATILE A PERSONALITY RUBENS WAS FLUENT IN FIVE LANGUAGES STUNNINGLY ENERGETIC A MASTER OF INGRATIATION HE OFTEN EXPENDED MORE TIME NEGOTIATING INTERNATIONAL TREATIES THAN PAINTING IT IS A MEASURE OF THE SUCCESS OF THE AGE OF RUBENS'AT THIS SCINTILLATING AND INDEFATIGABLE PERSONALITY SPARKLES THROUGH THE PAINTINGS WITHOUT EVER DISTRACTING US FROM THEIR EXTRAORDINARY CHARM AND AESTHETIC BRAVURA 9310120018 931012 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS OCT 1225 IN ITS 11TH YEAR THE FESTIVAL OPENS OCT 13 WITH THE US PREMIERE OF THE CAVE AN AUDIOVISUAL EXAMINATION OF THE COMMON ROOTS OF JEWS MUSLIMS AND CHRISTIANS TAKING ITS TITLE FROM THE CAVE OF THE PATRIARCHS IN HEBRON THIS NEW WORK BY MINIMALIST COMPOSER STEVE REICH AND HIS WIFE VIDEO ARTIST BERYL KOROT INCLUDES INTERVIEWS WITH ISRAELIS PALESTINIANS AND AMERICANS FOUR SINGERS AND 13 MUSICIANS ALONG WITH FIVE LARGE VIDEO SCREENS ARE SET WITHIN A MULTILEVEL STRUCTURE CREATED BY TOMMY TONY AWARDWINNER JOHN ARNONE BROOKLYN ACADEMY OF MUSIC 30 LAFAYETTE AVE THROUGH DEC 4 THIS COLLECTION OF WORKS MANY OF WHICH HAVE NEVER BEEN SEEN BEFORE OUTSIDE KOREA IS DIVIDED INTO THREE PARTS ARTS OF THE COURT RELIGIOUS ARTS AND ARTS IN THE ELEGANT HOME PART OF A YEARLONG CELEBRATION OF KOREAN LIFE AND CULTURE THE 125 PIECES ON VIEW RANGE FROM PAINTINGS CERAMICSND FURNITURE TO TEXTILES AND IMPERIAL REGALIA AMONG THEM ARE MORE THAN A DOZEN ITEMS DESIGNATED NATIONAL TREASURES BY THE KOREAN GOVERNMENT AFTER CLOSING HERE ON JAN 2 THE EXHIBIT MOVES TO THE SMITHSONIAN'S ARTHUR M SACKLER GALLERY FEB 20MAY 15 AND THE LOS ANGELES COUNTY MUSEUM OF ART JUNE 16AUG 21 THE ASIA SOCIETY PARK AVENUE AND 71ST STREET 212 2886400 FEATURING ALMOST 90 OF AUDUBON'S ORIGINAL WATERCOLORS FOR HIS FAMOUS PRINT SERIES THE BIRDS OF AMERICA THIS COLLECTION BEGINS A NATIONWIDE TOUR HERE IT IS THE FIRST TRAVELING EXHIBIT OF THESE LANDMARK WORKS SINCE THEY WERE ACQUIRED BY THE NEW YORK HISTORICAL SOCIETY FROM THE ARTIST'S WIDOW IN 1863 NEXT IT VISITS BOSTON CHICAGO DETROIT HOUSTON MEMPHIS NEW YORK SEATTLE AND SAN FRANCISCO NATIONAL GALLERY OF ART FOURTH STREET AT CONSTITUTION AVENUE NW THROUGH JAN 2 202 7374215 FOLLOWING A TWOYEAR 20 MILLION RENOVATION AND EXPANSION DESIGNED BY ARCHITECT EDWARD LARRABEE BARNES THE MUSEUM REOPENS WITH 50000 SQUARE FEET OF ADDED SPACE THE FIRST TEMPORARY EXHIBIT IN THE NEW SPACE IS RAINBOWS FENCES AND TARGETS WHICH SHOWCASES THE WORK OF AFRICANAMERICAN SCULPTOR JOHN SCOTT MR SCOTT'S IMAGERY MERGES NEW ORLEANS JAZZ WITH ITS AFRICAN HERITAGE SIXTYFIVE PIECES FROM THE ROBERT H CLAGUE COLLECTION OF WORKS FROM CHINA'S BRONZE REVIVAL WHICH BEGAN MORE THAN 800 YEARS AGO AND LASTED UNTIL THIS CENTURY THE ARTISTS EMULATED A TRADITION BEGUN AROUND 1600 BC AT THE DAWN OF CHINA'S BRONZE AGE MANY OF THE VESSELS DATING FROM THE 11TH TO THE 19TH CENTURIES ARE ON VIEW FOR THE FIRST TIME IN A MAJOR TRAVELING EXHIBITION IN AN EFFORT TO BRING THE MYSTERY SURROUNDING THESE NOCTURNAL CREATURES OUT OF THE DARK THIS EXHIBIT RECREATES BAT ENVIRONMENTS SUCH AS A CAVE AND A RAIN FOREST AND FEATURES SPECIAL EFFECTS AND 20 HANDSON ACTIVITIES THE EXHIBIT WILL TOUR ABOUT 40 NORTH AMERICAN MUSEUMS OVER THE NEXT SIX YEARS WITH SAN ANTONIO ITS FIRST STOP AFTER BURBANK NATURAL HISTORY MUSEUM OF LA COUNTY/BURBANK 555 N THIRD ST OCT 9JAN 16 818 5573562 STEPHANIE SUNDINE IS EMILIA MARTY IN A RARE PRODUCTION OF JANACEK'S THE MAKROPULOS CASE TOM FOX IS THE GREEDY PRUS AND GRAHAM CLARK IS THE IMPETUOUS PLAYBOY GREGOR NOTED JANACEK SPECIALIST SIR CHARLES MACKERRAS CONDUCTS WAR MEMORIAL OPERA HOUSE 301 VAN NESS AVE OCT 14 17 22 27 AND 30 415 8643330 A NEW GIANCARLO DEL MONACO PRODUCTION OF VERDI'S STIFFELIO DEBUTS OCT 21 FEATURING PLACIDO DOMINGO AS THE CUCKOLDED MINISTER SHARON SWEET AS LINA AND VLADIMIR CHERNOV AS STANKAR JAMES LEVINE CONDUCTS WITH SETS AND COSTUMES DESIGNED BY MICHAEL SCOTT AND LIGHTING BY GIL WECHSLER LINCOLN CENTER 66TH STREET AND BROADWAY THROUGH NOV 13 RESUMES MARCH 212 212 3626000 9310120017 931012 LEISURE & ARTS BOOKSHELF THE GULF WAR IN REVIEW BY JOHN LEHMAN THROUGHOUT THE 1980S THE AMERICAN PEOPLE ALONG WITH SADDAM HUSSEIN WERE TREATED TO ENDLESS STORIES ABOUT MISSILES THAT COULDN'T HIT THE TARGET SHIPS THAT COULDN'T SAIL AND TROOPS WHO COULDN'T SHOOT STRAIGHT NO WONDER BOTH AUDIENCES WERE ASTONISHED BY THE PERFORMANCE OF THE AMERICAN MILITARY IN DESERT STORM THE ANTIMILITARY BIAS OF CLINTONGENERATION EDITORS WAS COMPOUNDED BY THEIR COMMON PRACTICE OF ASSIGNING AMATEURS TO WHAT IS A VERY TECHNICAL BEAT MOST REPORTERS COVERING DESERT STORM COULD JUST ABOUT TELL A CLUSTER BOMB FROM AN ALMOND CLUSTER AN EXCEPTION WAS RICK ATKINSON THE PULITZER PRIZEWINNING REPORTER WHO COVERED THE MILITARY FOR THE KANSAS CITY STAR AND THEN FOR THE WASHINGTON POST DURING THE '80S THOUGH RELENTLESSLY CRITICAL OF THE ARMS BUILDUP DURING THE REAGAN YEARS THE POST DID ALWAYS ASSIGN FIRSTRATE PROFESSIONALS TO COVER THE PENTAGON AS WAR LOOMED MR ATKINSON OVERSAW ALL COVERAGE OF GULF OPERATIONS NO ONE COULD HAVE BEEN BETTER PREPARED TO WRITE A BOOK ON DESERT STORM AND HIS CRUSADE THE UNTOLD STORY OF THE PERSIAN GULF WAR HOUGHTON MIFFLIN 575 PAGES 2495 DOES FULL JUSTICE TO THE OPPORTUNITY UNLIKE A WOMAN AT WAR WRITTEN BY HIS CAPABLE SUCCESSOR AT THE POST MOLLY MOORE CRUSADE IS NOT A MEMOIR BUT A DETACHED OVERVIEW FOCUSING HEAVILY ON THE KEY DECISION MAKERS IN WASHINGTON AND IN THE GULF BUT GIVING MUCH ATTENTION TO THE AGONIES AND ADVENTURES OF THE GRUNTS AVIATORS AND SAILORS IT IS BROAD IN PERSPECTIVE AND JUICY IN SPECIFICS THE BOOK REVISES THE IMAGE OF GENERAL NORMAN SCHWARZKOPF AS THE BIG FRIENDLY TEDDY BEAR PROVIDING AMPLE EVIDENCE OF THE CINC'S VOLCANIC TEMPER AND LIKING FOR IMPERIAL TRAPPINGS THIS WILL LIKELY ONLY ADD TO THE LEGEND HOWEVER AND MR ATKINSON ALSO CONCLUDES THAT GEN SCHWARZKOPF DID NOT MAKE A SINGLE SIGNIFICANT ERROR OF STRATEGY OR TACTIC THROUGHOUT MISTAKES OF OMISSION AND COMMISSION BY GENERALS AND PRIVATES ALIKE ARE KEPT IN PERSPECTIVE AND DEALT WITH FAIRLY HE DESCRIBES THE TRAGIC KILLS FROM FRIENDLY FIRE THE WRONG TARGETS HIT AND CORRECT TARGETS MISSED 76 OF 167 LASERGUIDED BOMBS DROPPED BY STEALTH FIGHTERS IN THE FIRST FIVE DAYS OF THE WAR MISSED THEIR TARGET BUT HE ALSO DESCRIBES THE ACTS OF HEROISM AUDACIOUS MOVES AND THE SUCCESS AND RELIABILITY OF AMERICAN HIGHTECH WEAPONS LIKE THE F15E TOMAHAWK ONE REVELATION SURE TO UPSET MILITARY REFORMERS IS THAT GENS SCHWARZKOPF AND COLIN POWELL REFLECTED THE ORTHODOX ARMY DISDAIN FOR COMMANDOS DESPITE THE CONGRESSIONAL REFORMS CREATING THE FOURSTAR UNIFIED SPECIAL OPERATIONS WARFARE COMMAND ITS COMMANDER CARL STINER WAS KEPT OUT OF THE THEATER AND HIS PLANS WERE LARGELY REJECTED ACCORDING TO MR ATKINSON THE LIMITED COMMANDO OPERATIONS THAT WERE ALLOWED HAD MIXED SUCCESS CONTROVERSY BLOWS STILL IN THE MARINE CORPS ABOUT GEN SCHWARZKOPF'S DECISION AGAINST AN AMPHIBIOUS LANDING AS DESCRIBED BY MR ATKINSON THERE SEEMS LITTLE DOUBT THAT IT WAS THE CORRECT CALL THE HIGHLY PUBLICIZED AMPHIBIOUS EXERCISES AND INTENTION TO LAND ON THE KUWAIT BEACHES EFFECTIVELY TIED DOWN FOUR IRAQI DIVISIONS ALONG THE COAST IN A CONFIGURATION THAT ALLOWED THEM TO BE POUNDED BY THE 16INCH GUNS OF THE BATTLESHIPS WISCONSIN AND MISSOURI ONE OF THE MOST INTERESTING REVELATIONS IN THE BOOK CONCERNS THE TOMAHAWK THE CONVENTIONAL TOMAHAWK CRUISE MISSILE ABLE TO HIT WITHIN 10 FEET OF ITS TARGET AFTER A 700MILE FLIGHT HAD BEEN POISED ABOARD BATTLESHIPS SINCE 1983 AWAITING A STRIKE ORDER THAT YEAR THE NAVY HAD RECOMMENDED ITS USE AGAINST POINT TARGETS IN DAMASCUS AFTER THE ATTACK ON THE MARINE BARRACKS IN BEIRUT THE TOMAHAWK WAS NOT USED BECAUSE SOME SENIOR OFFICIALS FELT IT WAS SIMPLY NAVY GRANDSTANDING FOR BATTLESHIPS MR ATKINSON REVEALS THAT THE SAME ATTITUDE PREVAILED IN DESERT STORM WITH GEN POWELL ONLY RELUCTANTLY INCLUDING TOMAHAWKS IN THE STRIKE PLAN THEY TURNED OUT TO BE THE MOST SUCCESSFUL SINGLE WEAPON OF THE WAR MR ATKINSON REVEALS TWO OTHER CONTROVERSIES ABOUT THE TOMAHAWKS THEIR ROUTES ACTUALLY OVERFLEW THE MOUNTAINS OF WESTERN IRAN INTO IRAQ AND NO ONE ASKED THE AYATOLLAHS AND THE WAR SAW THE FIRST USE OF A SECRET TOMAHAWK WARHEAD THAT EFFECTIVELY DESTROYED THE ELECTRICPOWER GRIDS OF IRAQ WITH CARBON FILAMENT MR ATKINSON ADDS FUEL TO THE GROWING CONTROVERSY ABOUT THE GROSS INCOMPETENCE OF THE VAST AMERICAN INTELLIGENCE BUREAUCRACY THE PRODUCT OF A 30 BILLION ANNUAL INTELLIGENCE EFFORT WAS LARGELY USELESS AND ON VITAL QUESTIONS OF BATTLE AND STRATEGIC ASSESSMENTS IT WAS DOWNRIGHT WRONG NOWHERE DID INTELLIGENCE INCOMPETENCE HAVE MORE EFFECT THAN IN THE ENDING OF HOSTILITIES PRESIDENT BUSH WAS TALKED INTO HALTING OPERATIONS EXACTLY 100 HOURS AFTER THE LAND WAR BEGAN BY GEN POWELL WHO BELIEVED THE CIA THAT THE IRAQI ARMY COULD NOT ESCAPE AND THAT A STABLE GOVERNMENT MUST BE LEFT IN BAGHDAD MR ATKINSON CONCLUDES THAT THE DECISION WAS CORRECT BUT I VIEW THE EVIDENCE DIFFERENTLY THE IRAQI ARMY ESCAPED TO BASRAH INTACT SADDAM REMAINED IN POWER AND AFTER MR BUSH HAD URGED IRAQIS TO TAKE MATTERS INTO THEIR OWN HANDS AND SHIITES AND KURDS RESPONDED SADDAM USED THAT ARMY TO PULVERIZE THEM WHILE THE US WATCHED PASSIVELY THE VICTORY TURNED TO ASHES IN THE US PRESIDENTIAL CAMPAIGN IF MR BUSH HAD FOLLOWED HIS INSTINCTS HE WOULD BE PRESIDENT TODAY AND SADDAM WOULD BE GONE MR LEHMAN WAS SECRETARY OF THE NAVY IN THE REAGAN ADMINISTRATION 9310120016 931012 LETTERS TO THE EDITOR BLACK JOB LOSS DATA WERE DISTORTED YOUR PAGEONE HEADLINE SEPT 14 SAYING THAT ONLY BLACKS SUFFERED NET EMPLOYMENT LOSS IN THE 199091 RECESSION IS FALSE EACH MONTH THE BUREAU OF LABOR STATISTICS PUBLISHES A BREAKDOWN OF EMPLOYMENT BY RACE THESE DATA SHOW THAT ON A SEASONALLY ADJUSTED BASIS BLACK AND WHITE EMPLOYMENT DECLINED BY ABOUT THE SAME PROPORTION IN THE RECESSION IN ABSOLUTE TERMS MANY MORE WHITES THAN BLACKS LOST THEIR JOBS FROM THE FIRST QUARTER OF 1990 THROUGH THE THIRD QUARTER OF 1991 THE PERIOD SPECIFICALLY COVERED BY YOUR REPORT WHITE EMPLOYMENT DROPPED BY 1277000 OR 125 THE NUMBER OF BLACK WORKERS WENT DOWN 159000 OR 132 REGARDING THE SAMPLE OF 35342 MAINLY LARGER COMPANIES WHOSE JOB PRACTICES YOU DISCUSSED THERE IS NOT ENOUGH INFORMATION TO CONCLUDE WHETHER THE ALLEGATION IS TRUE OR FALSE THIS IS BECAUSE YOUR ANALYSIS IS RIDDLED WITH ELEMENTARY ERRORS IN STATISTICAL INFERENCE HERE ARE TWO EXAMPLES ONE YOUR DATA DRAWN FROM REGULATORY REPORTS FILED WITH THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION WERE BASED ON TWO OBSERVATIONS ONE WAS IN 1990 AND THE OTHER IN 1991 AT DIFFERENT TIMES OF THE YEAR EMPLOYMENT DATA ARE SUBJECT TO LARGE SEASONAL VARIATIONS WHICH ARE NOT THE SAME FOR BLACK AND WHITE WORKERS THE 59479 NET DECLINE IN BLACK EMPLOYMENT YOU SAID WAS EVIDENCE OF RACIAL DISCRIMINATION IS LESS THAN HALF THE NORMAL MONTHLY VARIANCE IN THE NUMBER OF BLACK WORKERS ASSUME FOR SAKE OF ARGUMENT THAT THE EMPLOYEES OF A COMPANY DIVISION ARE 100 BLACK ASSUME FURTHER THAT THESE EMPLOYEES BUY CONTROL OF THEIR OPERATION ACCORDING TO THE JOURNAL IF THE NEW FIRM DID NOT REPORT TO THE EEOC THAT WOULD BE A NET DECLINE IN BLACK EMPLOYMENT NONSENSE MOST DISTURBING WAS THAT YOU SUPPRESSED MENTION OF REGULARLY PUBLISHED GOVERNMENT DATA THAT DIRECTLY CONTRADICT YOUR CONCLUSION YOUR RECENT STORY LOSING GROUND IN THE LATEST RECESSION ONLY BLACKS SUFFERED NET EMPLOYMENT LOSS AND YOUR DECISION TO USE RAW STATISTICS PROVIDED A MISLEADING AND NEGATIVE IMPRESSION OF THE PERFORMANCE OF ITT IN THE AREA OF EQUAL OPPORTUNITY EMPLOYMENT YOUR ARTICLE INDICATED THAT ITT EMPLOYMENT HAD DECLINED BY 1186 BETWEEN 1990 AND 1991 THAT 325 OF THOSE AFFECTED WERE BLACK EMPLOYEES AND THEN PROCEEDED TO DECLARE THOSE 325 JOBS AS JOBS LOST IN FACT MOST OF THOSE SOCALLED LOSSES WERE NOT JOB LOSSES AT ALL DURING THE NARROW PERIOD COVERED THREE ITT SHERATON HOTEL MANAGEMENT CONTRACTS WERE ENDED IN WEST PALM BEACH FLA AND DALLAS THERE WAS NO EFFECT ON THE HOTEL EMPLOYEES WHEN THE HOTEL OWNERS AWARDED THE MANAGEMENT CONTRACTS TO OTHERS UNFORTUNATELY IN ST LOUIS A NEW STADIUM IS BEING BUILT ON THE HOTEL SITE IN FACT IF NOT FOR THESE THREE HOTELS THE ITTREPORTED EEOC STATISTICS WOULD HAVE SHOWN A NET GAIN OF 77 BLACK EMPLOYEES THIS WAS LED BY OUR DEFENSE GROUP WHERE THE MAJORITY OF ITT'S FEDERAL CONTRACTS ARE AWARDED AND WHERE THERE WAS A TOTAL REDUCTION OF 522 JOBS BUT AN INCREASE OF 64 BLACK EMPLOYEES FRANKLY YOUR ARTICLE DID NOT SERVE YOUR READERS WELL AND IN THE PROCESS IT DISTORTED THE VERY GOOD PERFORMANCE OF OUR COMPANY IN EQUAL OPPORTUNITY EMPLOYMENT WITH GREAT INTEREST I READ YOUR EXCELLENT AND PROVOCATIVE REPORT ON BLACK JOB LOSS PARTLY BECAUSE I HAVE A VESTED INTEREST IN PLACING MINORITY CANDIDATES IN PROFESSIONAL POSITIONS WITH CLIENTS I WAS DISTRESSED BY THE STATISTICS THAT SHOWED DISPROPORTIONATE BLACK JOB LOSS IN 1991 THIS SEEMED TO REVERSE WHAT MANY OF US SEEK TO ACCOMPLISH BUT THEN THE HAZARD OF CONCENTRATING ON A SINGLE ASPECT OF AN ISSUE BECAME APPARENT AS IS FREQUENTLY TRUE WITH STATISTICAL STUDIES STATISTICS DON'T LIE BUT THEY MAY BE USED TO TELL THE TRUTH SELECTIVELY TO PROVE A PRECONCEPTION THESE SAME STATISTICS TELL US THAT IN BOTH 1990 AND 1991 INDEED SINCE AT LEAST 1979 BLACKS HAVE ENJOYED AN EMPLOYMENT RATE IN EXCESS OF THEIR PROPORTION IN THE WORK FORCE 108 AND IN THE TOTAL POPULATION 118 THESE SAME STATISTICS INFORM US THAT HISPANICS OTHERS AND WHITES HAD LESS THAN THEIR SHARES OF THE WORK FORCE AND WERE PERHAPS ENTITLED TO SENSE DISCRIMINATION WE SHOULD BE CONCERNED BUT NOT NECESSARILY PANICKED BY THE RECENT PHENOMENON OF MORERAPID JOB LOSS BY BLACKS WHILE REJOICING AT THE EXCELLENT GAINS BY BLACKS IN MANAGERIAL TECHNICAL AND PROFESSIONAL JOBS HOWEVER ASSESSING THE OVERALL SITUATION THE BOTTOM LINE WE MIGHT FEEL MODEST SATISFACTION IN A PROLONGED PERIOD IN WHICH BLACK EMPLOYMENT EXCEEDED AND CONTINUES TO EXCEED BLACKS IN THE POPULATION IT COULD BE ENLIGHTENING TO UNDERSTAND THE UNDERLYING CAUSES OF THESE GAINS 9310120015 931012 KASLER UNIT RECEIVES CONTRACT HIGHLAND CALIF KASLER HOLDING CO SAID A SUBSIDIARY RECEIVED A 22 MILLION EXTENSION CONTRACT FROM THE DEVELOPER OF THE LAKE LAS VEGAS PROJECT IN HENDERSON NEV THE 15YEAR PROJECT IS A DESTINATION RESORT BEING DEVELOPED BY TRANSCONTINENTAL PROPERTIES INC SANTA BARBARA CALIF ON 2400 ACRES AROUND A MANMADE LAKE 17 MILES FROM THE LAS VEGAS STRIP THE KASLER SUBSIDIARY WASHINGTON CONSTRUCTION CO WAS AWARDED THE NEW CONTRACT TO DO MASS GRADING AT A GOLF COURSE SITE SOUTH OF THE LAKE KASLER IS A DIVERSIFIED CONSTRUCTION CONCERN 9310120014 931012 LEISURE & ARTS ON SPORTS TRIP TO TRUE NORTH REVIVES WHITE SOX BY FREDERICK C KLEIN TORONTO PITY THE CHICAGO WHITE SOX THEY BATTLED THEIR WAY TO THE CHAMPIONSHIP OF THE AMERICAN LEAGUE WEST ONLY TO BE OUTDRAWN AT THE GATE BY THE MEDIOCRE CROSSTOWN CUBS THEY MADE THEIR FIRST APPEARANCE IN POSTSEASON PLAY IN 10 YEARS ONLY TO BE UPSTAGED BY MICHAEL JORDAN'S RETIREMENT ANNOUNCEMENT WHEN THEY DID TAKE THE FIELD AT THEIR NEW COMISKEY PARK HOME THEY DISCARDED SCORING OPPORTUNITIES LIKE SO MUCH POCKET LINT THEY DEPARTED THE PREMISES DOWN 02 IN THEIR BESTOFSEVEN AL PLAYOFF WITH THE TORONTO BLUE JAYS WITH TWO PLAYERS AUDIBLY UNHAPPY AND THE BOOS OF THEIR FANS IN THEIR EARS BUT THEN THE SCHEDULE DICTATED A CHANGE OF AIR AND THE SOUTH SIDERS EMBARKED FOR THE TRUE NORTH HERE THEY FOUND BRACING BREEZES AND EVEN FLURRIES OF SNOW SUNDAY MORNING AND WHILE THEY PLAYED THE JAYS UNDER SHELTER IN THE SKYDOME WHERE THE MINIDOUGHNUTS ARE ALWAYS FRESH AND THE TEMPERATURE'S ALWAYS 68 THEY REVIVED ANYWAY WINNING TWO OF THREE MORE PRECISELY THEY WON TWO AND THEN LOST ONE THE LOSS BY A 53 SCORE COMING SUNDAY AFTERNOON AND ENSURING THAT AT LEAST ONE HOME CROWD WOULD GO HOME HAPPY THAT MEANS THEY RETURNED HOME TRAILING THREE GAMES TO TWO AND WITH ONE MORE LOSS CAN BEGIN LINING UP WITH JORDAN FOR TEE TIMES BUT THEY'LL TAKE IT WE CAME HERE NOT EXACTLY DOWN BUT NOT UH RELAXED THERE WERE SO MANY DISTRACTIONS YOU STARTED TO WONDER WHAT WAS NEXT GOING ON THE ROAD SOMETIMES CLEARS THAT UP SAID RON KARKOVICE THE WHITE SOX CATCHER IF YOU'D SAID WHEN WE LEFT HOME THAT THERE'D BE A GAME SIX IF WE DIDN'T GO WE'D HAVE STAYED HOME DECLARED ROUNDFACED GENE LAMONT THE CHICAGO MANAGER A LOT OF PEOPLE IN CHICAGO DIDN'T THINK WE'D BE PLAYING THAT GAME HE ADDED IN APPARENT REFERENCE TO HIS HOME FANS' LACK OF FERVOR LAMONT GREW UP NEAR IF NOT IN CHICAGO SO HE PROBABLY UNDERSTANDS THE ATTITUDE OF THAT CITY'S RESIDENTS TOWARD THE NATIONAL PASTIME EVEN THOUGH IT'S HAD TWO SHOTS EVERY SEASON THE TODDLIN' TOWN HAS GONE 76 YEARS WITHOUT A BASEBALL CHAMPION SINCE THE WHITE SOX WON THE 1917 WORLD SERIES THEY AND THE CUBS HAVE BEEN A COMBINED 011 IN POSTSEASON EXCURSIONS THIS IS THE SORT OF RECORD THAT INSPIRES WRY JOKES NOT OPTIMISM ANYONE CAN HAVE A BAD CENTURY SAYS HARVEY WALKEN A CHICAGO REALESTATE MAN AND PARTOWNER OF THE PITTSBURGH PIRATES THAT'D BE FUNNIER IF HE WEREN'T TALKING ABOUT THIS CENTURY THE SIGHT OF THE BLUE JAYS AS THE PARTY OF THE SECOND PART IN THE PRESENT PENNANT PLAYOFF WASN'T ONE TO CHANGE THAT STANCE HERE IS THE TEAM THAT PUT THE WORLD IN THE WORLD SERIES LAST YEAR AND IN ITS FIRST CRACK WON IT IN JOHN OLERUD PAUL MOLITOR AND ROBERTO ALOMAR IT HAD THE 123 FINISHERS IN THE LEAGUE'S 1993 BATTING RACE NO TEAM EVER DID THAT BEFORE ROSTER TURMOIL IS THE HALLMARK OF BASEBALL IN THE '90S AND THE JAYS WERE NO EXCEPTION TWO OF THEIR FOUR STARTING PITCHERS AT LAST SEASON'S END JIMMY KEY AND DAVID CONE DEPARTED FOR GREENER PASTURES THEREAFTER BUT TORONTO MANAGEMENT SIGNED DAVE THE STARE STEWART TO FILL ONE MOUND OPENING AND ADDED OUTFIELDER RICKEY HENDERSON SHORTSTOP TONY FERNANDEZ AND DESIGNATED HITTER MOLITOR FORMER ALLSTARS ALL TO BEEF UP OTHER POSITIONS THESE GUYS LOOK HARDER TO GET OUT THAN A FIRE IN A LUMBERYARD GAMES ONE AND TWO IN CHICAGO UNDERLINED THAT IMPRESSION THE JAYS BOXED JACK MCDOWELL THE SOX PUTATIVE PITCHING ACE FOR SEVEN RUNS AND 13 HITS IN SEVEN INNINGS AND WON 73 LAST TUESDAY NIGHT STEWART THREW SIX GOOD INNINGS THE NEXT AFTERNOON AND THE JAYS WON AGAIN 31 TORONTO PITCHERS COPED WITH FRANK THE BIG HURT THOMAS THE SOX SIEGE GUN MOSTLY BY NOT PITCHING TO HIM THEY WALKED HIM FIVE TIMES IN NINE ATBATS AND WHILE HE GOT THREE HITS IN THE OTHER FOUR HE DROVE IN BUT ONE RUN THE BIG HURT WENT INTO THE PLAYOFF HURTING HAVING SUSTAINED AN ARM BRUISE IN EARLIER ACTION AND WAS JUDGED UNFIT FOR INFIELD DUTY HE BECAME THE SOX DH WHILE RESERVE DAN PASQUA TOOK THOMAS'S USUAL SPOT AT FIRST BASE PASQUA'S WOES AT BAT HE WAS 0 FOR 6 AND AFIELD PROMPTED BO JACKSON A SOMETIME DH AND 1B TO GRUMBLE CHURLISHLY I THOUGHT THAT HIS TEAM HAD PLAYED THE SET A MAN SHORT VETERAN GEORGE BELL ANOTHER UNUSED SOMETIME DH THE SOX HAVE A LOT OF THOSE NONE VERY GOOD JUST GRUMBLED SAYING HE DIDN'T RESPECT LAMONT AS A MAN OR MANAGER WHATEVER HE THOUGHT OF BO'S REMARK LAMONT MADE HIM HIS DH IN THE THREE GAMES HERE BO RESPONDED BY OUTPASQUAING PASQUA GOING HITLESS IN HIS 10 OFFICIAL ATBATS WITH SIX STRIKEOUTS THE MANAGER ANSWERED BELL BY REMINDING HIM NOT TO BITE THE HAND THAT FILLS OUT THE LINEUP CARD BELL HASN'T BOTHERED TO EVEN SIT ON THE BENCH MUCH SINCE DON'T LOOK FOR EITHER PLAYER TO BE BACK NEXT YEAR THE SOX WONGAMES THREE AND FOUR BECAUSE OF GOOD PITCHING AND FINALLY SOME TIMELY HITTING AFTER LEAVING 23 BASE RUNNERS STRANDED THE FIRST TWO GAMES LEFTY WILSON ALVAREZ A 23YEAROLD VENEZUELAN WHO WAS SENT TO THE MINORS FOR A START IN AUGUST TO CORRECT HIS WILDNESS AND HAS THROWN NOTHING BUT STRIKES SINCE WENT ALL THE WAY TO WIN HERE FRIDAY 61 ON SATURDAY CHICAGO GOT THE BIG HITS WHILE TORONTO SQUANDERED SCORING CHANCES IN A 74 OUTCOME LANCE JOHNSON THE SOX WHIPPET CENTER FIELDER DROVE IN FOUR RUNS SATURDAY WITH A TRIPLE AND HIS FIRST HOME RUN OF THE SEASON ACTUAL OR POST I TRY TO HIT TRIPLES SMILED JOHNSON WHO'S LED THE LEAGUE IN THAT CATEGORY THREE YEARS RUNNING IF I WENT FOR HOME RUNS I'D PROBABLY HIT SEVEN OR EIGHT IN TWO YEARS AND BE OUT OF THE GAME THE JAYS WON THE TORONTO FINALE 53 BEHIND TALENTED RIGHTHANDER JUAN GUZMAN HE WON GAME ONE EVEN THOUGH HE WALKED EIGHT AND THREW THREE WILD PITCHES ON SUNDAY HE WALKED BUT ONE AND HIS SIX KS IN SEVEN INNINGS INCLUDED TWO BY THOMAS GUZMAN LEFT AHEAD 51 HAVING FACED BUT 24 HITTERS THREE MORE THAN PERFECT THE GOOD NEWS FOR THE WHITE SOX IS THAT THEY PROBABLY WON'T SEE HIM AGAIN THE OTHER GOOD NEWS THE SOX HOPE IS THAT HOME HAS TO BE BETTER TO THEM THAN LAST TIME BUT YOU NEVER CAN TELL MAYBE MICHAEL JORDAN WILL PICK TODAY OR TOMORROW TO UNRETIRE MAYBE WALTER PAYTON WILL MAYBE ERNIE BANKS 9310120013 931012 WHO'S NEWS GALEY & LORD INC GALEY & LORD INC NEW YORK PAUL G GILLEASE WAS ELECTED A DIRECTOR OF THIS MANUFACTURER OF WOVEN COTTON AND COTTON FABRICS INCREASING BOARD MEMBER SHIP TO SEVEN MR GILLEASE IS VICE PRESIDENT AND GENERAL MANAGER OF DUPONT TEXTILES A UNIT OF DUPONT CO HE PLANS TO RETIRE FROM THOSE POSTS AT THE END OF OCTOBER 9310120012 931012 MARKETING & MEDIA NBC AND CBS REPORT BRISK SALES FOR SUPER BOWL OLYMPICS SPOTS BY KEVIN GOLDMAN ALTHOUGH THE KICKOFF OF SUPER BOWL XXVIII AT THE GEORGIA DOME IN ATLANTA IS MORE THAN THREE MONTHS AWAY NBC IS TELLING ADVERTISERS THE NETWORK IS VIRTUALLY SOLD OUT FOR THE NATIONAL FOOTBALL LEAGUE'S CHAMPIONSHIP GAME AND FOR THE WINTER OLYMPICS JUST TWO WEEKS AFTER THE SUPER BOWL CBS SAYS IT HAS SOLD 85 OF THE ADVERTISING TIME FOR 16 DAYS AND NIGHTS OF COVERAGE IT IS RARE THAT TWO MAJOR SPORTING EVENTS THAT DEVOUR MAJOR ADVERTISING DOLLARS FALL WITHIN SUCH A SHORT TIME SPAN IT IS EVEN MORE UNCOMMON THAT THESE TWO EVENTS DON'T HURT EACH OTHER WHEN IT COMES TO NEGOTIATING PRICES WITH MADISON AVENUE BUT IF NETWORK TELEVISION IS LOOKING FOR ITS LONG PROMISED AND ELUSIVE ADVERTISING RECOVERY IT NEEDN'T LOOK ANY FURTHER THAN SPORTS PROGRAMMING SAYS DICK EBERSOL PRESIDENT OF NBC SPORTS EVEN AS THE WORLD BECOMES MORE FRAGMENTED WITH MORE AND MORE STATIONS SPORTING EVENTS SUCH AS THE SUPER BOWL AND THE OLYMPICS ARE OLDFASHIONED WAYS TO ATTRACT A LARGE MALE AUDIENCE AT ONE TIME THERE ARE SOME SUPER BOWL SPOTS STILL AVAILABLE AND INDUSTRY ANALYSTS NOTE THAT THE LAST FEW COMMERCIAL SPOTS TO BE SOLD ARE USUALLY THE MOST DIFFICULT BUT NBC A UNIT OF GENERAL ELECTRIC IS CONFIDENT THE FOOTBALL CLASSIC TO BE PLAYED JAN 30 REMAINS THE BIGGEST MARQUEE EVENT OF THE YEAR AND THEREFORE A MUST FOR MAJOR ADVERTISERS THE AVERAGE RATE FOR A 30SECOND SUPER BOWL COMMERCIAL SOLD SO FAR IS ABOUT 900000 A RECORD THAT REPRESENTS A HEALTHY 6 INCREASE FROM LAST YEAR'S AVERAGE OF 850000 SOME MEDIA BUYERS SAY THAT IN SOME CASES NBC IS ASKING AND GETTING AS MUCH AS 950000 OR A HEFTY 12 INCREASE FROM LAST YEAR FOR THE PRIVILEGE OF RUNNING A HALFMINUTE SPOT MR EBERSOL AND EXECUTIVES WHO PURCHASE COMMERCIAL TIME FOR ADVERTISERS CITE SEVERAL REASONS FOR THE UPBEAT OUTLOOK FOR SPORTS PROGRAMMING PERHAPS THE MOST INTERESTING IS THAT INCREASINGLY PRIME TIME SERIES ON THE MAJOR BROADCAST NETWORKS AREN'T DELIVERING AN AUDIENCE THAT IS MOSTLY MALE INDEED ACTION/ADVENTURE SHOWS ARE VIRTUALLY UNHEARD OF THE DRAMAS LIKE MATLOCK' TEND TO SKEW OLD AND LA LAW' TENDS TO SKEW FEMALE SAYS RON VON URFF DIRECTOR OF NEGOTIATIONS AT SFM MEDIA A NEW YORK MEDIAPLANNING COMPANY ANOTHER REASON FOR THE UNEXPECTED TURNAROUND IN SPORTS ADVERTISING IS INCREASED SPENDING BY DOMESTIC AUTOMOBILE MANUFACTURERS SAYS BILL CROASDALE PRESIDENT OF NATIONAL BROADCASTING FOR WESTERN INTERNATIONAL MEDIA LOS ANGELES WHICH BUYS AIR TIME TO BE SURE THERE ARE STILL COSTLY FUMBLES IN SPORTS ESPECIALLY IN FOOTBALL THE FINAL FEW WEEKS IN THE FOOTBALL SEASON SAYS MR CROASDALE WILL MOST LIKELY REMAIN A WASTELAND WITH ADVERTISING SOLD AT THE LAST MINUTE AT BARGAINBASEMENT RATES BUT THE SUPER BOWL IS A WORLD APART THE SIZE OF THE AUDIENCE SEEMS TO BE IMMUNE TO THE ACTION ON THE FIELD IN LAST YEAR'S CONTEST THE DALLAS COWBOYS TROUNCED THE BUFFALO BILLS IN BUFFALO'S THIRD CONSECUTIVE LOSING TRIP TO THE SUPER BOWL YET THE GAME WAS WATCHED BY 451 OF US HOMES WITH TELEVISION SETS ACCORDING TO AC NIELSEN THAT TRANSLATES INTO 42 MILLION HOUSEHOLDS WITH TELEVISION SETS AND IS THE HIGHEST AVERAGE AUDIENCE IN SUPER BOWL HISTORY STILL AT LEAST ONE MAJOR SPONSOR DR PEPPER/SEVENUP IS NO LONGER RISKING A SECONDHALF YAWN THE BEVERAGE MANUFACTURER SAYS IT WILL RELINQUISH ITS USUAL POSITION IN THE FOURTH QUARTER FOR CONSIDERABLY BETTER PLACEMENT IN THE SECOND QUARTER OF COURSE ADVERTISING ON THE SUPER BOWL DOESN'T ALWAYS GUARANTEE SUCCESS PEPSICO INTRODUCED ITS NEW AGE CRYSTAL PEPSI ON THE SUPER BOWL EARLIER THIS YEAR COMPLETE WITH AN AWARDWINNING MTV AWARD THAT IS SONG BY VAN HALEN RIGHT NOW THE PRODUCT ISN'T EXACTLY FLYING OFF THE SHELF SUCH PRODUCTS AS PEPSI AND ANHEUSERBUSCH'S BUDWEISER ARE PERENNIALS AND BOTH WILL BE BACK ON THE NEXT SUPER BOWL THE OLYMPICS ALSO HAS ITS USUAL SPONSORS SUCH AS COCACOLA AND VISA BUT CBS WHICH WILL BROADCAST THE WINTER GAMES FROM LILLEHAMMER NORWAY BEGINNING FEB 12 SAYS THE EVENT WILL HAVE SOME NEW FACES AMONG NOT ONLY THE ATHLETES NATURALLY BUT AMONG ADVERTISERS AS WELL JOSEPH D ABRUZZESE A SENIOR VICE PRESIDENT OF SALES AT CBS SAYS THE NEW ADVERTISERS INCLUDE INTERNATIONAL BUSINESS MACHINES KMART SEARS AND SARA LEE WHICH WILL ADVERTISE ITS HANES UNIT AMONG OTHERS MR ABRUZZESE SAYS CBS IS ABOUT 50 MILLION AHEAD OF WHERE IT WAS FIVE MONTHS BEFORE THE 1992 OLYMPICS BEGAN WHEN IT BROADCAST THE WINTER GAMES FROM ALBERTVILLE FRANCE IN 1992 THE NETWORK WAS SCRAMBLING VIRTUALLY UNTIL THE OLYMPIC FLAME WAS LIT TO SELL SPOTS DON'T THROW THE CONFETTI FOR CBS SPORTS JUST YET HOWEVER MEDIA BUYERS AND CBS ITSELF SAY THAT ALTHOUGH THE 85 SELLOUT IS QUITE AN ACCOMPLISHMENT AT THIS POINT UNLOADING THE REMAINING COMMERCIAL TIME WILL BE AN OLYMPIAN CHALLENGE IT'S ALWAYS CLOSING THE LOOP THAT IS TOUGHEST SAYS MR ABRUZZESE MR CROASDALE IS MORE BLUNT CBS WILL HAVE TO BEAT THE BUSHES TO GET THAT LAST 15 HE SAYS CALLING THE GOAL A KILLER THAT IS WHAT DETERMINES WHETHER YOU WRITE RED INK OR BLACK INK KMART KMART CORP ASSIGNED CREATIVE AND PRODUCTION ADVERTISING ACTIVITIES FOR ITS WEEKLY CIRCULAR TO MERIDIAN RETAIL INC A UNIT OF DEVON GROUP INC THE PUBLICATION DISTRIBUTED TO 70 MILLION HOUSEHOLDS WAS PREVIOUSLY CREATED INHOUSE THE TROY MICH RETAILER SAID THE MOVE ALLOWS IT TO PRODUCE THE CIRCULAR MORE EFFICIENTLY AND COST EFFECTIVELY KMART IS PARING 73 JOBS AS A RESULT SCHWEPPES CADBURY BEVERAGES INC A UNIT OF CADBURY SCHWEPPES PLC CONSOLIDATED ADVERTISING FOR ITS SCHWEPPES AND CRUSH SODA BRANDS WITH FOOTE CONE & BELDING COMMUNICATIONS CHICAGO THE AGENCY THAT HANDLES CADBURY'S CANADA DRY LINE AMMIRATI & PURIS NEW YORK HAD HANDLED THE ACCOUNT UNTIL RECENTLY IT IS EXPECTED TO BILL ABOUT 8 MILLION IN 1994 STILL UNASSIGNED IS THE HIRES ROOT BEER BRAND A CADBURY SPOKESWOMAN SAID NEW ACCOUNT SHERWINWILLIAMS CO CLEVELAND MOVED THE DUTCH BOY ACCOUNT FROM ROSS ROY GROUP'S GRISWOLD INC ALSO OF CLEVELAND TO PARTNERS & SHEVACK NEW YORK BILLINGS ARE ESTIMATED AT 8 MILLION 9310120011 931012 INTERNATIONAL EUROTUNNEL CUTS REVENUE FORECAST NEEDS MORE FUNDS BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON EUROTUNNEL SA CUT ITS REVENUE FORECAST FOR THE NEXT THREE YEARS CITING DELAYS IN GETTING THE CHANNEL TUNNEL STARTED AND TOUGH COMPETITION FROM EXISTING FERRY OPERATORS AS A RESULT ADDITIONAL FUNDS WILL NEED TO BE RAISED IT SAID THE LONGDELAYED TUNNEL CONNECTING BRITAIN AND FRANCE WILL OPEN FOR FREIGHT TRAFFIC MARCH 7 AND FOR PASSENGER TRAFFIC IN EARLY MAY EUROTUNNEL THE TUNNEL'S ANGLOFRENCH OPERATING COMPANY SAID NEXT YEAR WILL BE INEVITABLY A STARTUP YEAR WITH SOME INITIAL CAPACITY CONSTRAINTS EUROTUNNEL SAID IN A PROGRESS REPORT TO SHAREHOLDERS REVENUES PROBABLY WILL NOT SETTLE INTO A REGULAR PATTERN BEFORE THE LATE SUMMER EUROTUNNEL SAID CONSTRUCTION OF THE TUNNELS AND TERMINALS AND INSTALLATION OF MECHANICAL AND ELECTRICAL EQUIPMENT ARE VIRTUALLY COMPLETE BUT AN INITIAL FORECAST FOR REVENUE DURING 1994 HAS DROPPED 166 TO 2241 MILLION 3443 MILLION AGAINST A FORECAST OF 2686 MILLION MADE IN APRIL ESTIMATES FOR TOTAL CASH NEEDS BETWEEN 1986 WHEN THE PROJECT BEGAN AND NEXT MARCH HAVE RISEN TO 88 BILLION EUROTUNNEL SAID THAT IS 350 MILLION MORE THAN WAS ESTIMATED ONLY SIX MONTHS AGO AS A RESULT EUROTUNNEL PREDICTED BY NEXT MAY IT WILL HAVE SPENT ALL OF THE 89 BILLION RAISED SO FAR THROUGH SHARE ISSUES AND BANK LOANS EUROTUNNEL ISN'T EXPECTED TO BREAK EVEN UNTIL 1998 BY WHICH TIME ITS TOTAL CASH NEEDS INCLUDING FUNDS TO COVER INTEREST PAYMENTS ARE EXPECTED TO REACH 10 BILLION TO FUND THE DIFFERENCE EUROTUNNEL SAID IT PLANS TO RAISE ABOUT 1 BILLION THROUGH NEW LOANS AND A SHARE ISSUE EARLY NEXT YEAR ABOUT HALF OF THE MONEY IS EXPECTED TO COME FROM THE 220 BANKS THAT ARE FUNDING THE PROJECT AND HALF FROM SHAREHOLDERS THROUGH A RIGHTS ISSUE EUROTUNNEL SAID IT ALSO IS NEGOTIATING WITH ITS BANKERS TO CONVERT FLOATINGRATE DEBT INTO FIXEDRATE CONTRACTS TO TAKE ADVANTAGE OF CURRENT LOW INTEREST RATES DESPITE TOUGH COMPETITION FROM ESTABLISHED FERRY OPERATORS EUROTUNNEL OFFICIALS HOPE TO GET A SIZABLE SLICE OF CROSSCHANNEL TRAFFIC EUROTUNNEL'S COMMERCIAL DIRECTOR CHRISTOPHER GARNETT SAID HE EXPECTS THE TUNNEL TO HAVE A 30 SHARE OF THE EXISTING DOVERCALAIS FREIGHT MARKET AND 40 OF THE DOVERCALAIS CAR MARKET BY NEXT AUTUMN 9310120010 931012 MAPPING THE MIND WORD PROCESSING STROKE PATIENTS YIELD CLUES TO BRAIN'S ABILITY TO CREATE LANGUAGE VICTIM'S PROBLEM WITH VERBS MAY CONFIRM EXISTENCE OF AN INNATE GRAMMAR SCANNING FOR FLOOP AND TWEAL BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL BALTIMORE ONE AFTERNOON LAST FALL JEANNETTE DUTCHER A 51YEAROLD LIBRARIAN WAS ASKED TO WRITE DOWN WHAT SHE HAD WATCHED ON TELEVISION THE NIGHT BEFORE CAREFULLY SHE WROTE THAT NIGHT I WATCHED THE PRESIDENTIAL DEBATES PRESIDENT BUSH LOOKED WOODEN GOVERNOR CLINTON SUDDENLY SHE PAUSED GRIMACED INSERTED A DASH AND THEN FINISHED THE SENTENCE ABOUT THE ECONOMY THERE'S A WORD THAT I KNOW BUT I CAN'T GET IT DOWN SHE EXPLAINED AFTER A MOMENT SHE BEGAN SLOWLY TO WRITE ABOVE THE DASH TALKES NO IT'S NOT ES I THINK IT'S SUPPOSED TO BE ED SHE SAID MS DUTCHER'S FRUSTRATING AND PECULIAR PROBLEM HAS CATAPULTED HER INTO THE ANNALS OF SCIENCE SHE IS ONE OF A DOZEN SUBJECTS OF SCIENTIFIC SCRUTINY WHO HAVE SUFFERED BRAIN DAMAGE THAT AFFECTS THEIR ABILITY TO DEAL WITH A SINGLE PART OF SPEECH IN HER CASE VERBS MS DUTCHER CAN WRITE NOUNS ADJECTIVES OR ADVERBS WITH NO DIFFICULTY SHE CAN SPEAK VERBS NORMALLY AND UNDERSTAND VERBS SHE READS OR HEARS BUT SINCE SUFFERING A STROKE EIGHT YEARS AGO SHE WILL OCCASIONALLY STUMBLE ON A WORD WHEN WRITING AND INVARIABLY THE TROUBLESOME WORD IS A VERB ANOTHER BALTIMORE STROKE VICTIM HW HAS THE OPPOSITE PROBLEM SHE CAN WRITE VERBS BUT HAS DIFFICULTY SPEAKING THEM FOR NEUROSCIENTISTS THE STUDIES OF HW AND MS DUTCHER REVEAL A CAPABILITY OF THE HUMAN BRAIN UNSUSPECTED UNTIL RECENTLY IN LEARNING LANGUAGE THE BRAIN DOESN'T SIMPLY BUILD A MENTAL DICTIONARY INSTEAD IT SORTS AND STORES WORDS BY GRAMMATICAL CATEGORY BOTH MS DUTCHER AND HW HAD STROKES THAT DAMAGED THE REGIONS WHERE VERBS ARE PROCESSED STUDIES OF PEOPLE WITH APHASIAS AS THESE LANGUAGE DISORDERS ARE CALLED ARE BEGINNING TO EXPLAIN ONE OF THE HUMAN BRAIN'S MOST AWESOME FUNCTIONS THE ABILITY TO INVENT AND USE LANGUAGE THE STUDIES COUPLED WITH NEW MACHINES THAT PEEK INTO THE BRAIN AS A PERSON SPEAKS WRITES READS OR LISTENS ARE SHOWING A MARVELOUS AND PREVIOUSLY UNIMAGINED COMPLEXITY THE RESEARCH HOLDS IMMEDIATE PROMISE OF NEW INSIGHT AND POSSIBLY NEW THERAPIES FOR THE APHASIAS AND OTHER LANGUAGE DISORDERS SUCH AS DYSLEXIA IT ALSO COULD LEAD TO BETTER METHODS OF TEACHING READING AND WRITING TO THE SPEAKING AND SEEING AS WELL AS TO THE BLIND AND THE DEAF BUT ULTIMATELY UNDERSTANDING HOW THE BRAIN INVENTS STORES AND USES LANGUAGE WILL BE AN INSIGHT INTO HUMANNESS ITSELF LANGUAGE IS QUINTESSENTIALLY THE THING THAT MAKES US DIFFERENT FROM THE ANIMALS SAYS NEUROSCIENTIST ALFONSO CARAMAZZA OF DARTMOUTH COLLEGE IN HANOVER NH WHO STUDIED MS DUTCHER WHILE HE WAS AT JOHNS HOPKINS UNIVERSITY IN BALTIMORE HUMAN LANGUAGE IS INFINITELY CREATIVE SAYS DR CARAMAZZA HUMANS CAN TAKE A LIMITED SET OF SOUNDS OR WRITTEN SYMBOLS REPRESENTING SOUNDS AND ARRANGE THEM IN TENS OF THOUSANDS OF DIFFERENT COMBINATIONS WORDS EACH OF WHICH HAS A DISTINCT MEANING THEY CAN THEN LINK THESE COMBINATIONS OF SOUNDS TOGETHER IN A LIMITLESS VARIETY OF SEQUENCES SENTENCES AND CONVEY AN INFINITE AMOUNT OF INFORMATION WE DO NOT LEARN A LANGUAGE SIMPLY BY MEMORIZING A LARGE NUMBER OF STOCK SENTENCES RATHER WE CREATE ORIGINAL SENTENCES WITH EVERY NEW THOUGHT WE SPEAK EXPLAIN TWO OF COLUMBIA UNIVERSITY'S LEADING NEUROSCIENTISTS RICHARD MAYEUX AND ERIC KANDEL IN THE WIDELY USED TEXT PRINCIPLES OF NEURAL SCIENCE MOREOVER EACH NEWLY CREATED SENTENCE CAN BE UNDERSTOOD BY THE LISTENER THE FIRST TIME HE HEARS IT YOU CAN COMMUNICATE IDEAS THAT ARE NOT ALREADY IN THE MIND OF THE OTHER PERSON SAYS DR CARAMAZZA UNDERLYING THIS REMARKABLE PROPERTY OF LANGUAGE ARE THE BRAIN'S RULES OF GRAMMAR SAY NEUROSCIENTISTS TO CONVEY MEANING WORDS AND SENTENCES ARE CREATED ACCORDING TO RULES THAT ARE KNOWN BY BOTH THE SPEAKER AND THE LISTENER THIS UNDERLYING GRAMMAR IS INNATE KNOWLEDGE SOMETHING ONE IS BORN WITH ACCORDING TO A WIDELY ACCEPTED THEORY OF LINGUIST NOAM CHOMSKY AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY UNRAVELING THE WAY THE BRAIN CREATES WHOLE SENTENCES OR THE WAY IT LEARNS TO READ OR TO SPELL IS FAR TOO FORMIDABLE A TASK FOR NEUROSCIENTISTS AT THE PRESENT STATE OF THEIR KNOWLEDGE SO THEY ARE STARTING OFF AS SIMPLY AS POSSIBLE THEY ARE TRYING TO LEARN HOW THE BRAIN PROCESSES SINGLE WORDS THE BRAIN'S SOCALLED LEXICAL KNOWLEDGE EVEN AT THIS SIMPLE LEVEL THEY ARE COMING UP WITH SURPRISES UNTIL RECENTLY LINGUISTS AND PSYCHOLOGISTS THOUGHT THE BRAIN PROCESSED WORDS THROUGH THE USE OF IMAGES CONCEPTS AND IDEAS IN THIS OLDER VIEW OF THE BRAIN A PERSON SEES AND WANTS TO NAME A PIECE OF FURNITURE WITH FOUR LEGS AND A BACK THAT ONE PERSON SITS IN THE INCOMING VISUAL IMAGE CALLS UP THE STORED SOUND OF THE WORD CHAIR ALLOWING THE PERON TO SPEAK THE NAME OF THE OBJECT BUT THE APHASIC PATIENTS BEING STUDIED BY COGNITIVE SCIENTISTS HERE AT JOHNS HOPKINS ARE DISPLAYING A DIFFERENT PICTURE OF HOW THE BRAIN DEALS WITH WORDS THEY ARE DISCOVERING THAT THE BRAIN SORTS WORDS BY CATEGORIES FOR INSTANCE TAKE HW ONE OF THE APHASIC PATIENTS STUDIED BY DR CARAMAZZA AND SPEECH THERAPIST ARGYE E HILLIS OF THE HILLSOUTH REHABILITATION CORP IN BALTIMORE IN AN EXPERIMENT THEY ASKED HW TO READ ALOUD THE SENTENCE DON'T CRACK THE NUTS IN HERE IN WHICH CRACK IS USED AS A VERB SHE HAD DIFFICULTY SAYING CRACK YET SHE HAD NO TROUBLE IN READING ALOUD ANOTHER SENTENCE THERE'S A CRACK IN THE MIRROR IN WHICH CRACK IS A NOUN MS DUTCHER HAD A SIMILAR PROBLEM IN WRITING THE SAME SENTENCES FROM DICTATION SHE STUMBLED IN WRITING CRACK AS A VERB BUT NOT AS A NOUN THE TWO PATIENTS' PROBLEMS INDICATE THAT THE BRAIN MUST STORE VERBS SEPARATELY FROM NOUNS SINCE THEIR RESPECTIVE STROKES AFFECTED ONLY VERBS SAY DR CARAMAZZA AND MS HILLIS THE PATIENTS' DISTINCTIVE PROBLEMS ALSO INDICATE THAT WORDS AREN'T STORED SOLELY BY THEIR SOUND SINCE A NOUN WITH THE SAME SOUND AS THE VERB WAS UNAFFECTED THE BRAIN SEEMS TO HAVE TWO IDENTICAL FILES OF VERBS ONE FOR SPOKEN VERBS WHICH WAS DAMAGED IN HW'S CASE AND ONE FOR WRITTEN VERBS DAMAGED IN MS DUTCHER'S WE CAN THINK OF LANGUAGEPROCESSING BY THE BRAIN AS BEING MADE UP OF DIFFERENT MODULES DR CARAMAZZA SAYS THERE IS A MODULE THAT HANDLES THE WRITTEN FORM OF WORDS AND ANOTHER THAT PROCESSES THE SPOKEN FORM HE EXPLAINS WITHIN THESE LARGE MODULES ARE SMALLER MODULES WHERE WORDS ARE SORTED ACCORDING TO THEIR GRAMMATICAL CATEGORY VERBS IN ONE MODULE NOUNS IN ANOTHER ADJECTIVES IN STILL ANOTHER OTHER APHASIC PATIENTS INDICATE THERE ARE MODULES FOR SORTING WORDS BY MEANING TAKE JJ A RETIRED EXECUTIVE WHO HAD A STROKE WHEN HE WAS 67 AND PS A BUSINESSMAN WHO HAD SUSTAINED A SEVERE BLOW TO THE HEAD AT AGE 45 THEY SUFFER THE OPPOSITE SIDES OF THE SAME PROBLEM IN NAMING OBJECTS WHEN THE RESEARCHERS WERE TESTING JJ TO FIND OUT HOW THE STROKE HAD DAMAGED HIS LANGUAGE ABILITIES THEY NOTICED HE COULD EASILY NAME AND DESCRIBE ANIMALS BUT HAD DIFFICULTY WITH INANIMATE OBJECTS HE CORRECTLY IDENTIFIED A PICTURE OF A LION AND WHEN ASKED TO DESCRIBE A LION HE SPOKE OF A LARGE FOURLEGGED ANIMAL WITH A MONSTROUS HEAD WITH WHICH IT GROWLS AND IT HAS A MANE A LARGE BODY OF HAIR IT LIVES IN AFRICA BUT WITH INANIMATE OBJECTS HE HAD PROBLEMS WHEN SHOWN A PICTURE OF A DESK DRAWER HE CALLED IT A SERVING DEVICE AND WROTE VASE WHEN ASKED TO DEFINE A BENCH HE DESCRIBED A STOOL AND WHEN ASKED TO DEFINE AN APRICOT HE SAID I'VE HEARD OF IT IT'S A FRUIT BUT I DON'T REMEMBER WHICH ONE I SUPPOSE THAT IT'S SWEET PS HAD THE OPPOSITE PROBLEM HE HAD DIFFICULTY NAMING ANIMALS AND VEGETABLES BUT NOT INANIMATE OBJECTS HE DEFINED A HERON AS A FISH AND SHOWN A PICTURE OF A WALRUS CALLED IT A CLAM BUT WROTE SEAL PS HOWEVER COULD CORRECTLY DEFINE AN OTTOMAN OR NAME A PICTURE OF A DRAWER OTHER RESEARCHERS HAVE DESCRIBED SIMILAR APHASIC PATIENTS SUCH AS ONE WHO HAS PROBLEMS NAMING LARGE OBJECTS SEEN OUTDOORS SUCH AS BRIDGE AND AIRPLANE AND ANOTHER PATIENT WHO HAS DIFFICULTY NAMING INDOOR OBJECTS LIKE LAMP AND CHAIR SUCH PATIENTS SAYS DR CARAMAZZA SUGGEST THAT THE MEANING OF A WORD MUST BE STORED PIECEMEAL THE MEANING OF LEMON IS THE SUM OF MANY ATTRIBUTES THE BRAIN HAS FILED AWAY SEPARATELY ITS COLOR ITS SHAPE SIZE THE FACT IT COMES FROM A LIVING TREE THAT IT IS FOOD THAT IT TASTES SOUR AND SO FORTH A STROKE CAN DAMAGE AN AREA OF THE BRAIN WHERE ONE ATTRIBUTE IS STORED THAT IS COMMON TO MANY THINGS THE BLOW TO THE HEAD OF PS FOR INSTANCE IS BELIEVED TO HAVE DAMAGED THE PART OF THE BRAIN WHERE SOME OF THE ATTRIBUTES THAT DEFINE ANIMALS ARE STORED FINDING EXACTLY WHERE IN THE BRAIN THIS WORD PROCESSING GOES ON IS THE GOAL OF NEUROLOGISTS STEVEN E PETERSEN MARCUS E RAICHLE AND THEIR COLLEAGUES AT WASHINGTON UNIVERSITY IN ST LOUIS THEY ARE USING A TECHNIQUE CALLED POSITRON EMISSION TOMOGRAPHY OR PET TO SURVEY THE UNDAMAGED BRAINS OF VOLUNTEERS AS THEY READ OR LISTEN TO SINGLE WORDS A PET SCAN USES A RING OF DETECTORS SURROUNDING THE HEAD TO PICK UP POSITRONS POSITIVELYCHARGED ELECTRONS THAT ARE EMITTED BY WATER THAT HAS BEEN BRIEFLY IRRADIATED IN A CYCLOTRON WHEN IT IS INJECTED INTO A VOLUNTEER THE WATER TENDS TO CONCENTRATE IN THOSE BRAIN CELLS THAT ARE MOST ACTIVE THE SCAN TELLS THE RESEARCHERS WHICH PART OF THE BRAIN SUDDENLY STARTS WORKING WHEN THE VOLUNTEER READS HEARS OR SPEAKS A WORD SINCE THE POSITRON RADIATION DIES OUT WITHIN A MATTER OF MINUTES THE EXPERIMENTS POSE NO DANGER FOR THE VOLUNTEERS IN ONE RECENT SERIES OF EXPERIMENTS THE RESEARCHERS WANTED TO RESOLVE AN OLD MYSTERY OF HOW ONCE A PERSON LEARNS TO READ THE BRAIN IS ABLE TO ALMOST INSTANTLY KNOW WHETHER A STRING OF LETTERS COMPOSES A WORD DOES THE BRAIN LOOK AT THE SHAPE OF THE COMBINED LETTERS OR DOES IT LOOK AT THE SPELLING TO FIND OUT DR PETERSEN AND HIS COLLEAGUES MADE PET SCANS OF EIGHT NORMAL VOLUNTEERS WHILE THEY LOOKED AT REAL WORDS AND FAKE WORDS WHEN THE VOLUNTEERS LOOKED AT A REAL WORD SUCH AS BOARD AN AREA IN THE VERY HIND PART OF THE LEFT BRAIN LIGHTED UP AS EXPECTED BUT WHEN THE VOLUNTEERS LOOKED AT A SET OF MEANINGLESS MARKINGS THAT HAD VERTICAL HORIZONTAL AND CURVED STROKES COMPARABLE TO REAL LETTERS THE SPOT IN THE BRAIN REMAINED QUIET THE WORDRECOGNITION SPOT ALSO REMAINED QUIET WHEN THEY VIEWED RANDOM STRINGS OF REAL LETTERS THAT DIDN'T MAKE A WORD SUCH AS NLPFZ THESE RESULTS RULED OUT THE IDEA THAT THE BRAIN RECOGNIZES A WORD BY THE SHAPES OF ITS LETTERS BUT THEN THE VOLUNTEERS WERE SHOWN COMBINATIONS OF LETTERS SUCH AS TWEAL AND FLOOP THAT CONFORMED TO THE RULES OF ENGLISH SPELLING BUT WEREN'T WORDS THESE PSEUDOWORDS CAUSED THE BRAIN TO LIGHT UP IN THE SAME SPOT THAT WAS ACTIVATED BY REAL WORDS WE THINK THIS AREA OF THE BRAIN IS PARTICULARLY INTERESTING SAYS DR PETERSEN ANATOMICALLY IT LIES VERY CLOSE TO THE PART OF THE BRAIN THAT DEALS WITH ALL VISUAL INFORMATION HE EXPLAINS SO DETERMINING WHETHER A SET OF LETTERS CONFORMS TO THE SPELLING RULES MUST BE ONE OF THE FIRST STEPS THAT THE BRAIN TAKES IN THE PROCESS OF READING BUT SAYS DR PETERSEN THIS PROCESSING IS SOMETHING THAT DOESN'T EXIST AT BIRTH THE RULES OF SPELLING HAVE TO BE LEARNED SO EVEN THOUGH THIS AREA IS QUITE EARLY IN THE VISUAL PROCESSING STREAM IT HAS TO BE WIRED UP LONG AFTER BIRTH AS A PERSON BECOMES LITERATE THE DISCOVERY HELPS EXPLAIN A LANGUAGE DISORDER CALLED ALEXIA THAT HAS BAFFLED PSYCHOLOGISTS AND NEUROLOGISTS FOR YEARS THE DISORDER WHICH USUALLY DEVELOPS AFTER DAMAGE TO THE BRAIN PREVENTS A FORMERLY LITERATE PERSON FROM READING THE PERSON CAN STILL WRITE PERFECTLY SPELLED WORDS BUT TO READ HE MUST SLOWLY GO OVER EACH WORD LETTER BY LETTER EXPERIMENTS LIKE THOSE IN ST LOUIS SHOW FOR THE FIRST TIME THAT ALEXIA IS THE RESULT OF DAMAGE TO THE PART OF THE BRAIN THAT RECOGNIZES WORDS BY DETERMINING WHETHER THEY CONFORM TO THE RULES OF SPELLING 9310120009 931012 ENTERPRISE THINKING SMALL PAYS OFF FOR THESE FEDERAL CONTRACTORS ENTREPRENEURS EMPHASIZE EFFICIENCY TO WOO GOVERNMENT AGENCIES BY EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL RESTON VA MORE ENTREPRENEURS ARE SEIZING OPPORTUNITIES TO GET BIGGER BY HELPING UNCLE SAM GET SMALLER TAKE CORDANT INC A SMALL COMPUTERSYSTEMS COMPANY IN THIS WASHINGTON DC SUBURB CORDANT'S SUCCESS AT FINDING NEW WAYS TO CUT FEDERAL SPENDING SETS IT APART FROM MANY SMALL DEFENSE CONTRACTORS WHICH ARE SCARED BY DEFENSE BUDGET CUTS AND SCRAMBLING TO SWITCH TO PRIVATESECTOR CUSTOMERS AS A RESULT CORDANT PREDICTS SALES SHOULD CLIMB TO AN ESTIMATED 60 MILLION THIS YEAR FROM 40 MILLION A YEAR AGO THE CLOSELY HELD FIRM WHICH DERIVES ABOUT 90 OF ITS BUSINESS FROM THE FEDERAL GOVERNMENT SAYS IT IS PROFITABLE BUT DECLINES TO GIVE SPECIFIC FIGURES CORDANT WOOS GOVERNMENT AGENCIES BY DESIGNING AND SELLING COMPUTER AND COMMUNICATIONS SYSTEMS WHERE THEY CAN SEE A REAL QUICK AND SIGNIFICANT PAYBACK EXPLAINS PETER KUSEK THE COMPANY'S PRESIDENT CORDANT SAYS CLIENTS TRIM EXPENSES BECAUSE THE COMPANY FIGURES HOW TO COMBINE EXISTING COMPUTER SYSTEMS WITH DIFFERING SPECIFICATIONS INTO A COMMON NETWORK BY EMPHASIZING IMPROVED EFFICIENCY CORDANT RECENTLY HAS LANDED SEVERAL LUCRATIVE CONTRACTS FOR INSTANCE THE CONCERN IS INSTALLING A 7 MILLION SYSTEM THAT WILL STREAMLINE THE STORAGE FACILITIES WHERE THE AIR FORCE KEEPS ITS PERSONNEL FILES CORDANT IS ONE OF A GROWING NUMBER OF SMALL BUSINESSES CAPITALIZING ON A CONCEPT BEING CHAMPIONED BY VICE PRESIDENT AL GORE UNDER THE LABEL REINVENTING GOVERNMENT THERE NOW ARE MORE OPPORTUNITIES FOR ENTREPRENEURS BECAUSE THE GOVERNMENT IS LOOKING FOR NEW WAYS OF ATTACKING A PROBLEM NOTES MARK LEVINE DIRECTOR OF CORPORATE DEVELOPMENT AT GEOCENTERS INC IN NEWTON MASS THE SMALL COMPANY HAS DEVELOPED A VEHICLE THAT HELPS TO LOCATE UNDERGROUND WASTE DUMPS THE TASK IS PART OF THE PENTAGON'S ENVIRONMENTAL RESPONSIBILITIES IN CLOSING COUNTLESS MILITARY BASES ALTHOUGH THE VEHICLE WAS JUST COMPLETED SEPT 1 WE'VE BOOKED 500000 OF BUSINESS ALREADY MAINLY FROM MILITARY BASES MR LEVINE SAYS NFK ENGINEERING INC ALSO IS PLAYING THE EFFICIENCY CARD THE SMALL RESEARCH ENGINEERING AND DESIGN FIRM SAYS IT IS ASSISTING THE NAVY IN DESIGNING STANDARD MODULES FOR WEAPONS ELECTRONICS AND MACHINERY FUNCTIONS THAT CAN BE USED INTERCHANGEABLY IN SHIPS TO BUILD A SHIP FROM THE KEEL UP IS VERY EXPENSIVE SAYS GEORGE AMIR PRESIDENT OF THE ARLINGTON VA COMPANY THIS NEW APPROACH WILL ALLOW THE NAVY TO BUILD SHIPS CHEAPER AND FASTER HE SAYS MEANWHILE THE DEFENSE DEPARTMENT'S PURCHASING AGENCY SAYS IT IS EAGER TO AWARD PRIME VENDOR CONTRACTS TO SMALL BUSINESSES IN MANY OF ITS 22 REGIONS AS PART OF A NEW PROGRAM AIMED AT STREAMLINING THE DISTRIBUTION OF MEDICAL SUPPLIES AND PHARMACEUTICALS TO MILITARY HOSPITALS UNTIL NOW MILITARY HOSPITALS HAVE ORDERED SUPPLIES ON THEIR OWN LOCALLY THE NEW SYSTEM WILL LET A SINGLE VENDOR ACT AS A REGION'S ORDERING CONTACT MAE DEVINCENTIS A CONTRACTING PROGRAM OFFICER AT THE DEFENSE PERSONNEL SUPPORT CENTER IN PHILADELPHIA SAYS SHE HAS TOLD THE US SMALL BUSINESS ADMINISTRATION TO GO OUT AND FIND VIABLE SMALL BUSINESSES THAT CAN HANDLE THE JOB THE COMBINED CONTRACTS ARE WORTH MORE THAN 300 MILLION ANNUALLY SHE ADDS SUCH OUTREACH ALONG WITH THE BURGEONING SUCCESS OF CORDANT AND OTHER SMALL CONTRACTORS ARE A REMINDER THAT THE FEDERAL GOVERNMENT WILL KEEP BUYING BILLIONS OF DOLLARS OF GOODS AND SERVICES EVEN IN TIMES OF FISCAL RESTRAINT THE DEFENSE BUDGET DROPPED TO 2589 BILLION IN THE FISCAL YEAR ENDED SEPT 30 FROM 2821 BILLION A YEAR EARLIER PRESIDENT CLINTON'S BUDGET FOR FISCAL YEAR 1994 CALLS FOR A FURTHER DROP TO 2507 BILLION BUT YOU KNOCK OFF FOUR PERCENTAGE POINTS AND IT'S STILL A HUGE MARKETPLACE SAYS L KENNETH JOHNSON A CORDANT SENIOR VICE PRESIDENT CORDANT BIT OFF A CHUNK OF THAT BUDGET WITH ITS 7 MILLION AIR FORCE CONTRACT IT IS TRANSFERRING THE RECORDS OF ALL 445000 ACTIVEDUTY OFFICERS AND ENLISTED PERSONNEL FROM LABORINTENSIVE MICROFICHE TO OPTICAL DISKS THAT CAN BE READ BY COMPUTER THE AUTOMATED SYSTEM BEING INSTALLED AT RANDOLPH AIR FORCE BASE IN SAN ANTONIO TEXAS SEEKS TO RETRIEVE RECORDS AT THE SERVICE'S MILITARY PERSONNEL CENTER IN ABOUT 20 SECONDS DOWN FROM ROUGHLY 15 MINUTES TODAY CAPT TOM GILROY A PUBLIC AFFAIRS OFFICER AT THE PERSONNEL CENTER SAYS THE SYSTEM NOT ONLY SHOULD PROVIDE BETTER CUSTOMER SERVICE BUT WE CAN MAINTAIN IT WITH HALF THE FOLKS WE NOW HAVE THE RECORDS CENTER'S STAFF NOW TOTALS 85 CORDANT GOT AN ADDITIONAL PIECE OF THE SHRINKING DEFENSE BUDGET IN AUGUST WHEN THE NAVY ANNOUNCED THAT THE COMPANY WOULD SHARE A HOTLY CONTESTED 550 MILLION CONTRACT CALLED NAVFAC CAD2 WITH INTERGRAPH CORP A COMPUTERSYSTEMS COMPANY IN HUNTSVILLE ALA THE 12YEAR PROJECT REQUIRES CORDANT TO DEVELOP A WIDERANGING COMPUTERAIDED DESIGN SYSTEM THAT INTEGRATES HARDWARE AND DOZENS OF SOFTWARE APPLICATIONS UNDER ANOTHER RECENT FEDERAL CONTRACT WORTH 373 MILLION THE COMPUTERSYSTEMS COMPANY IS CREATING A CENTRAL LOCATION SO CREDITORS CAN BE NOTIFIED WHEN COMPANIES AND INDIVIDUALS FILE FOR PROTECTION UNDER FEDERAL BANKRUPTCY LAW THE CENTRALIZED BANKRUPTCY NOTICING CENTER WAS ORDERED BY THE FEDERAL JUDICIARY'S ADMINISTRATIVE OFFICE OPENING LATER THIS FALL THE CENTER WILL RELIEVE THE 15 LARGEST BANKRUPTCY COURTS IN THE US OF HAVING TO ADVISE THE ROUGHLY 25 MILLION CREDITORS NAMED EACH YEAR IN BANKRUPTCY FILINGS INSTEAD CREDITORS WILL RECEIVE LETTERS GENERATED BY COMPUTERS AT CORDANT HEADQUARTERS CORDANT IS THE NEWLY MINTED NAME OF CENTEL FEDERAL SYSTEMS FORMERLY A UNIT OF CENTEL CORP A CHICAGO TELECOMMUNICATIONS CONCERN THE COMPANY BECAME CORDANT LAST YEAR BECAUSE WE WANTED TO GET RID OF THE FEDERAL SYSTEMS' MONIKER MR KUSEK SAYS FOR DESPITE ITS SUCCESS AT GETTING BIGGER FROM SHRINKING UNCLE SAM CORDANT HOPES SOMEDAY TO DEPEND LESS ON THE GOVERNMENT 9310120008 931012 INTERNATIONAL RUSSIA'S POSITION ON IMMUNITY ADDS TO DEBTPACT DELAY A WALL STREET JOURNAL NEWS ROUNDUP MOSCOW RUSSIA'S REFUSAL TO WAIVE ITS SOVEREIGN IMMUNITY TO LEGAL ACTION ADDED NEW DELAYS TO AN AGREEMENT WITH WESTERN BANKS TO RESTRUCTURE 26 BILLION IN FORMER SOVIET DEBT ACCORDING TO BANKERS AND RUSSIAN OFFICIALS ALEXANDER SHOKHIN RUSSIAN DEPUTY PRIME MINISTER SAID AT A NEWS CONFERENCE HERE THAT THE DISAGREEMENT COULD POSTPONE RUSSIA'S REPAYMENT OF 500 MILLION IN INTEREST ARREARS BY THE END OF THIS YEAR A FIRST 160 MILLION INSTALLMENT OF THOSE ARREARS WAS TO BE RELEASED FRIDAY WE AGREED ON ESSENTIALLY ALL THE CONDITIONS MR SHOKHIN SAID REFERRING TO A MEETING WITH RUSSIAN NEGOTIATIONS IN FRANKFURT LATE LAST WEEK THE KEY DIFFERENCE HE NOTED WAS THAT RUSSIA INSISTS ON KEEPING ITS SOVEREIGN IMMUNITY IN ANY DEAL WHILE THE BANKS WANT RUSSIA TO WAIVE THAT RIGHT HE SAID A PACT COULD BE REACHED WITHIN THE NEXT FEW WEEKS BUT HE ADDED THAT THE BALL NOW IS IN THE BANKS' COURT NEGOTIATORS FOR RUSSIA'S 600 CREDITOR BANKS CONFIRMED THAT THE SOVEREIGNTY ISSUE WAS AMONG THE FINAL TECHNICAL DETAILS BLOCKING A DEBT PACT THEY SAID ASKING A STATE TO CONTRACTUALLY WAIVE SOVEREIGN IMMUNITY IS INTERNATIONALLY STANDARD IN DEBT AND CREDIT AGREEMENTS BETWEEN PRIVATE INTERESTS AND SOVEREIGN STATES THAT WAIVER WOULD ENABLE THE BANKS TO SEIZE STATE ASSETS IF RUSSIA DEFAULTS RUSSIA IS CONCERNED THAT WAIVING ITS IMMUNITY COULD PUT MUCH OF THE COUNTRY'S STATEOWNED INDUSTRY WITHIN REACH OF CREDITORS MR SHOKHIN SAID HE NOTED THAT A DEBTRESCHEDULING DEAL IN APRIL WITH THE SOCALLED PARIS CLUB GROUP OF WESTERN GOVERNMENT CREDITORS DIDN'T INVOLVE WAIVING SOVEREIGN IMMUNITY BUT BANKERS EXPLAIN THAT STATES HAVE MORE MEANS AT THEIR DISPOSAL FOR HOLDING ANOTHER STATE TO AN AGREEMENT THAN DO PRIVATE INTERESTS SUCH AS BANKS AMONG OTHER UNRESOLVED POINTS IS WHO WILL SIGN THE DEBT AGREEMENT FOR MOSCOW RUSSIA'S VNESCHEKONOMBANK HAS ASSUMED RESPONSIBILITY FOR ADMINISTERING FORMER SOVIET DEBT TOTALING ABOUT 74 BILLION BUT WESTERN BANKS WANT TO ENSURE THAT EITHER THE RUSSIAN GOVERNMENT OR THE STATE STAND BEHIND THE PACT MEANWHILE MR SHOKHIN SAID THE RUSSIAN GOVERNMENT IS TRYING TO RESOLVE DISPUTES WITH ITS LAST MAJOR CATEGORY OF CREDITOR OUTSTANDING FOREIGN SUPPLIERS FOR WHOSE IMPORTS RUSSIA HASN'T YET PAID 9310120007 931012 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 CLOSED FOR HOLIDAY 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 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 MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 3375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY OCTOBER 4 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 296 13 WEEKS 308 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 658 60 DAYS 670 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 658 60 DAYS 668 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 485 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9310120006 931012 EQUITY MARKET INDEX TO CHANGE NEW YORK MARRIOTT CORP'S SPLIT INTO TWO COMPANIES REQUIRES CHANGES IN THE DOW JONES EQUITY MARKET INDEX EFFECTIVE TODAY MARRIOTT INTERNATIONAL INC REMAINS IN THE LODGING INDUSTRY GROUP AND HOST MARRIOTT CORP IS BEING ADDED TO THE REAL ESTATE INVESTMENT INDUSTRY GROUP 9310120005 931012 REVIEW & OUTLOOK EDITORIAL THE NEW NEIGHBORHOOD YESTERDAY MEXICAN PRESIDENT CARLOS SALINAS MET WITH US ATTORNEY GENERAL JANET RENO TO TALK ABOUT PROBLEMS IN THE NEIGHBORHOOD AMERICANS KNOW ALL ABOUT PROBLEMS WITH THE NEIGHBORS A HUNDRED OR SO YEARS AGO PEOPLE WHO LIVED IN DEVELOPING US CITIES AND WHO CALLED THEMSELVES AMERICANS USED TO ROUTINELY SLUG IT OUT IN THE STREETS WITH PEOPLE LIVING IN THE NEXT NEIGHBORHOOD WHO WERE KNOWN BY VARIOUS COLORFUL EPITHETS AT BEST THEY WERE THE FOREIGNERS OR JUST THEM TODAY WITH NAFTA WE'RE TRYING TO SORT OUT WHETHER THE US HAS BECOME JUST ONE BIG NEIGHBORHOOD THAT WANTS NOTHING TO DO WITH THE NEW THEM THE MEXICANS WITHOUT MUCH PUBLICITY THE US RECENTLY QUADRUPLED THE NUMBER OF AGENTS SWARMING THE BORDER AROUND EL PASO TEXAS EVEN INTERRUPTING TRADE MEANWHILE CONGRESS HAS HELD AT LEAST ONE HEARING LATELY ON MEXICO'S PURPORTED HUMAN RIGHTS ABUSES SO MR SALINAS IS CURIOUS TO KNOW WHAT THE STATE OF PLAY IS AT THE MOMENT WITH THE CLINTON ADMINISTRATION ON NAFTA HUMAN NATURE IS A TOUGH NUT BUT WE IMAGINE MOST PEOPLE WOULD LIKE TO THINK AMERICA HAS GRADUATED FROM A SOCIETY WHOSE DAILY LIFE AND LANGUAGE IS DEFINED IN TERMS OF WOPS MICKS KIKES KRAUTS AND NOW WETBACKS WE SUSPECT THAT IS IN FACT THE CASE WHERE THERE'S RESISTANCE TO NAFTA'S TRADE LIBERALIZATIONS IT IS MORE LIKELY THE RESULT OF THE HUGE SOCIAL DISLOCATIONS CREATED BY THE US'S OWN POLITICAL SYSTEM CONSIDER THE DIFFERENT EXPERIENCES WITH MEXICAN WORKERS OF TWO STATES TEXAS AND CALIFORNIA CALIFORNIA IS BESIDE ITSELF OVER THE MEXICAN INFLUX TEXAS ISN'T WHAT'S THE DIFFERENCE TEXAS HAS A BORDER WITH MEXICO THAT'S MORE THAN 1000 MILES LONG AND IN MANY CASES AMOUNTS TO NO MORE THAN DRY RIVER BEDS CALIFORNIA'S BORDER WITH MEXICO IS ONLY 200 MILES LONG AND MUCH HARDER TO CROSS IN PLACES ALSO THE TEXAS ECONOMY IS RELATIVELY STRONG COMPARED WITH STRUGGLING CALIFORNIA JOBSTEALING MEXICANS SHOULD BE MORE LIKELY TO SPILL INTO TEXAS YET CALIFORNIA RECEIVES AS MUCH AS THREE TIMES THE NUMBER OF ILLEGAL IMMIGRANTS THAT TEXAS RECEIVES A PARTIAL EXPLANATION IS THAT CALIFORNIA IS A PROMINENT WELFARE STATE TEXAS ISN'T TEXAS ADHERES TO THE SAME MANDATED FEDERAL SOCIAL SPENDING CALIFORNIA DOES BUT THE SPENDING PORTION THAT CALIFORNIA ITSELF CONTROLS IS MUCH MORE GENEROUS TEXAS PAYS LESS PER CAPITA ON WELFARE NOT JUST FOR ILLEGAL ALIENS BUT FOR EVERYBODY IT IS TO NO ONE'S ADVANTAGE TO COME TO TEXAS JUST FOR THE SAKE OF ASSISTANCE SAYS SANDRA MARTINEZ FROM THE TEXAS OFFICE OF IMMIGRATION AND REFUGEE AFFAIRS WHEN YOU'RE ON ASSISTANCE HERE IT'S VERY BAD YOU'RE NOT GOING TO LIVE OFF OF THAT PEOPLE COME HERE TO WORK NOT TO GO ON WELFARE AND THAT AFFECTS THE ATTITUDE OF OUR RESIDENTS ABOUT IMMIGRANTS THEY ARE GENERALLY SEEN AS WORKERS NOT AS WELFARE RECIPIENTS THOUGH EXACT NUMBERS ARE HARD TO COME BY CALIFORNIA RECENTLY INCREASED ITS ESTIMATE OF THE NUMBER OF ILLEGAL ALIENS TO TWO MILLION FROM 12 MILLION JUST SIX MONTHS AGO TEXAS WITH THE HUGE BORDER CLAIMS IT HAS 550000 ILLEGAL IMMIGRANTS CALIFORNIA'S SPENDING ON ILLEGAL IMMIGRANTS FOR FISCAL 199394 WILL TOTAL MORE THAN 3 BILLION TOTAL COST FOR THE SAME SERVICES IN TEXAS IS 456 MILLION COUNTING HEADS ACCURATELY MAKES PERCAPITA COMPARISONS DIFFICULT BUT THE AGGREGATE DIFFERENCES ACROSS THE BOARD MIRROR THE PUBLIC OUTCRY IN CALIFORNIA AND RELATIVE CALM IN TEXAS WHETHER FOR PUBLIC EDUCATION OR EMERGENCY AND ROUTINE MEDICAL SERVICES CALIFORNIA'S SPENDING FAR OUTSTRIPS THAT IN TEXAS NO DOUBT TO LIBERALS RELATIVELY MORE CONSERVATIVE TEXAS IS SIMPLY LESS CARING THOUGH THE REMARK BY THE STATE'S SANDRA MARTINEZ NOTED ABOVE SUGGESTS THAT TEXAS AND ITS WORK ETHIC ARE MORE IN STEP WITH THE SPIRIT OF THE AGE OF WORKFARE THE IMPORTANT POINT HERE IS THAT YES AMERICANS HAVE INDEED COME A LONG WAY SINCE THE ETHNIC STREETFIGHTING OF A CENTURY AGO THAT HOWEVER WILL NEVER PREVENT DEMAGOGUES IN AN AGE OF NATIONAL TV FROM AGITATING VOTERS INTO A GENERALIZED PHOBIA TOWARD THE NEIGHBORS NEXT DOOR REAL WORLD EXPERIENCE THOUGH SUGGESTS THAT WHERE MEXICO'S IMMIGRANTS ILLEGAL OR OTHERWISE ARE WORKING HARD AND ADDING TO THE ECONOMY AMERICANS HAVE LITTLE FEAR OF BROADENING OUR TRADING ARRANGEMENTS WITH MEXICO BUT WHERE IMMIGRANTS ARE SEEN AS A DRAIN ON PUBLIC RESOURCES AND SO A THREAT TO COMMUNITY STABILITY SUPPORT FOR NAFTA IS SUSPECT WE SUPPOSE THAT CONGRESSIONAL CIRCUSES OVER MEXICO'S HUMAN RIGHTS ABUSES ARE MORE FUN THAN RETHINKING SOCIALLY DISRUPTIVE FEDERAL SPENDING MANDATES BUT IF NAFTA FAILS NO ONE SHOULD PRETEND THAT THIS WILL MEAN ANYTHING GOOD FOR JOBS IN AMERICA THE POLICIES THAT HAVE MADE REAL WORK SO HARD TO COME BY IN SO MANY BELEAGUERED NEIGHBORHOODS WERE MADE IN AMERICA AND NOWHERE ELSE 9310120004 931012 LETTERS TO THE EDITOR HYDROQUEBEC FINANCES ROCK SOLID STUDY SAYS YOUR SEPT 28 LETTERS COLUMN CARRIES A GROSSLY INACCURATE AND UNFAIR MISSIVE FROM ROBERT BLOHM REGARDING HYDROQUEBEC A NEW INDEPENDENT FINANCIAL STUDY OF HYDROQUEBEC COMMISSIONED BY DOMINION SECURITIES WHICH IS OWNED BY CANADA'S LARGEST BANK THE ROYAL BANK OF CANADA REACHES VERY DIFFERENT CONCLUSIONS FROM THOSE IN MR BLOHM'S LETTER WE BELIEVE HYDROQUEBEC IS A STRONG ASSET FOR ITS GUARANTOR AND SOLE SHAREHOLDER THE PROVINCE OF QUEBEC THE STUDY SAYS THE COMPANY PROVIDES A DEPENDABLE SOURCE OF RENEWABLE ENERGY THAT IS INSULATED FROM RISING FUEL COSTS AND MAJOR SUPPLY INTERRUPTIONS MANAGEMENT HAS SET APPROPRIATE FINANCIAL TARGETS FOR THE FUTURE SUPPORTED BY A STRONG FINANCIAL POSITION AND A CONSISTENT EARNINGS RECORD IF HYDROQUEBEC THE STUDY ADDS BECAME INVESTOROWNED WITH AN INDEPENDENT CREDIT RATING ESTIMATED REQUIRED RATE INCREASES WOULD STILL RESULT IN EXTREMELY ATTRACTIVE POWER RATES RELATIVE TO OTHER NORTH AMERICAN UTILITIES DIRECTLY CONTRARY TO MR BLOHM'S ASSERTIONS DOMINION SECURITIES BELIEVES HYDROQUEBEC'S APPROACH TO INTEREST RATE COVERAGE IS MORE CONSERVATIVE THAN THAT OF MOST UTILITIES SINCE IT ESTABLISHES TARGETS IN RELATION TO TOTAL CASH INTEREST EXPENDITURES INCLUDING CAPITALIZED INTEREST THEREBY ENSURING THE COMPANY'S RATES ARE SUFFICIENT TO SERVICE ITS EXISTING DEBT AT ALL TIMES HYDROQUEBEC IS IN SOLID FINANCIAL SHAPE OFFERS LOW RATES TO ITS CUSTOMERS WHILE GENERATING PROFITS AND TAX REVENUES AND ITS PRODUCTION INFRASTRUCTURE IS IN EXCELLENT CONDITION 9310120003 931012 WORLD MARKETS STOCK PRICES SLIP FROM RECORD LEVELS IN LONDON BUT SET FIFTH NEW HIGH IN A ROW IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARES SLIPPED YESTERDAY AS THE MARKET FOUND LITTLE INCENTIVE TO DRIVE PRICES HIGHER FOLLOWING FRIDAY'S RECORDSETTING SESSION BUT IN FRANKFURT THOUGH BUYING COOLED OFF A BIT STOCKS MARCHED UP TO THEIR FIFTH CONSECUTIVE RECORD FINISH THE TOKYO EXCHANGE WAS CLOSED MONDAY FOR A HOLIDAY ON TUESDAY IN TOKYO THE NIKKEI INDEX FELL 25473 POINTS TO CLOSE THE MORNING SESSION AT 2012391 OTHER ASIAN AND PACIFIC BOURSES POSTED STRONG GAINS MONDAY RALLIES CONTINUED IN SYDNEY AND RESUMED IN HONG KONG AS EACH MARKET SET A NEW RECORD HIGH WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11329 DOWN 005 REFLECTING LOWER EUROPEAN AND ASIA/PACIFIC MARKETS AND HIGHER AMERICAN MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 16586 UP 704 OR 44 WITH UNITED PLANTATIONS OF MALAYSIA POSTING A 12 GAIN IN ITS LOCAL CURRENCY SEMICONDUCTOR STOCKS TRAILED AT 20063 DOWN 694 OR 33 WITH INTEL OF THE US SLIDING 68 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 64 POINTS TO 31022 THE FT 30STOCK INDEX EDGED DOWN 04 POINT TO 23587 VOLUME WAS A FAIRLY PALTRY 4443 MILLION SHARES COMPARED WITH 4774 MILLION SHARES IN THE PREVIOUS SESSION MOST STOCKS SHED JUST A FEW PENNIES IN THE FEATURELESS SESSION ECONOMIC DATA FROM THE BRITISH GOVERNMENT RECEIVED ONLY MINIMAL ATTENTION THE JULY TRADE DEFICIT WIDENED FROM JUNE AS EXPORTS FELL 31 AND IMPORTS ROSE 01 PRODUCER OUTPUT PRICES MEANWHILE WERE UNCHANGED IN SEPTEMBER FROM AUGUST AND YEARTOYEAR GROWTH SLOWED TO 42 FROM 43 BUT EXCLUDING VOLATILE ITEMS PRICES ROSE 04 FOR THE MONTH AND 3 ANNUALLY THE PROPERTY SECTOR SAW SOME ACTION ON POSITIVE BRITISH NEWS REPORTS OF OVERSEAS INTEREST IN REAL ESTATE A POTENTIAL PROPERTY RECOVERY PROMPTED A ROSIER VIEW OF THE BANKING SECTOR WHICH HABEEN SAVAGED IN RECENT YEARS BY PLUMMETING LOANASSET VALUES YET SOME CONSTRUCTION AND BUILDING STOCKS DROPPED IN REACTION TO WEEKEND REPORTS THAT THE BRITISH GOVERNMENT WAS CONSIDERING SLASHING SPENDING ON INFRASTRUCTURE PROEJCTS IN FRANKFURT THE DAX 30STOCK INDEX ROSE 601 POINTS TO A RECORD 201102 AFTER TOPPING OUT AT A NEW INTRADAY HIGH OF 202120 BUT ADVANCERS ONLY OUTNUMBERED DECLINERS 1613 AS THE BUYING FRENZY THAT ERUPTED LAST WEEK BEGAN TO COOL BECAUSE SOME PRICES WERE VIEWED AS A BIT HIGH SHARE PRICES REACTED POSITIVELY TO STRONGER GERMAN BOND AND BOND FUTURES PRICES AND INVESTORS CONTINUED TO ANTICIPATE FURTHER REDUCTIONS IN INTEREST RATES ISSUES SENSITIVE TO RATES ADVANCED WITH BANKS OUTPERFORMING OTHER BLUE CHIPS CORPORATE NEWS WAS LIGHT AND SPECULATION FOCUSED ON A RULING BY GERMANY'S CONSTITUTIONAL COURT EXPECTED TODAY ON THE THE MAASTRICHT TREATY TO PROVIDE EUROPEAN COMMUNITY POLITICAL MONETARY AND ECONOMIC UNITY ALL EC MEMBERS BUT GERMANY HAVE APPROVED THE TREATY IN PARIS STOCKS FELL FOLLOWING A LATE DROP THAT WAS CHARACTERIZED AS AN ABRUPT CORRECTION FOLLOWING AN EXTENDED BULL RUN IN MILAN SHARES ENDED LOWER IN THIN TRADING AS SENTIMENT WAS DEPRESSED BY A DISPUTE ABOUT ITALIAN PRIVATIZATION ON SUNDAY THE INDUSTRY MINISTER PAOLO SAVONO RESIGNED IN THE DISAGREEMENT ABOUT HOW SELLOFFS OF STATEOWNED ENTERPRISES SHOULD PROCEED AND THIS AFFECTED STOCKS ACROSS THE BOARD YESTERDAY HITTING HARDEST THOSE COMPANIES TO BE PRIVATIZED MR SAVONO LATER YESTERDAY RETRACTED HIS DECISION TO QUIT AFTER PRIME MINISTER CARLO AZELIO CIAMPI ASKED HIM TO RECONSIDER MR SAVONO SAID HE WOULD WORK ON REORDERING STATE PARTICIPATION IN COMMERCE IN MADRID STOCKS ROSE MODERATELY BOOSTED BY STRONG GAINS IN THE BANKING AND ELECTRICAL SECTORS WITH SPANISH MARKETS TO BE CLOSED TODAY MANY INVESTORS STAYED OUT YESTERDAY TO HAVE A FOURDAY WEEKEND IN ZURICH EQUITIES ROSE IN LISTLESS DEALINGS LIFTED BY A LATE SPURT OF BUYING IN FINANCIAL SHARES SLIGHTLY LOWER SHORTTERM INTEREST RATES COMBINED WITH EXPECTATIONS THAT RATES WILL CONTINUE TO DECLINE IN COMING MONTHS HELPED LURE INVESTORS TO BANKING AND INSURANCE STOCKS IN BRUSSELS STOCKS FINISHED MIXED TO HIGHER AS INVESTORS BOUGHT RETAILERS AND TOOK PROFITS IN CYCLICAL INDUSTRIALS IN STOCKHOLM SHARES PRICES ADVANCED TO A NEW 1993 HIGH FOR THE SECOND CONSECUTIVE SESSION AS PARTICIPANTS WERE ENCOURAGED BY THE STABILITY OF THE KRONA CURRENCY AND LENDING RATES SYDNEY'S RALLY CONTINUED AND STOCKS ONCE AGAIN ROSE TO A NEW SIXYEAR HIGH OVERSEAS BUYING ACCOUNTED FOR STRONG RISES IN THE LARGESTCAPITALIZED STOCKS WHICH DROVE THE MARKET FOR MOST OF THE DAY IN HONG KONG FOREIGN BUYING OF PROPERTYCOMPANY STOCKS PUSHED THE KEY INDEX UP 23 TO A RECORD CLOSE THE MOMENTUM RESUMED FOLLOWING A BRIEF STALL FRIDAY WHEN THE INDEX FELL FOR THE FIRST TIME IN EIGHT SESSIONS MANILA SHARES SOARED 22 IN HEAVY VOLUME PROPELLED BY THE GAINS IN THE TELEPHONE AND BANKING SECTORS IN SEOUL STOCKS SURGED 14 BOOSTED BY OPTIMISM STEMMING FROM SPECULATION THAT THE SOUTH KOREAN GOVERNMENT WILL SOON LAUNCH CURRENCY EXCHANGES OF BANKNOTES AND COINS TO DIFFERENT ONES WITH SAME VALUE THIS WOULD HELP IMPLEMENTATION OF A SOCALLED REALNAME FINANCIAL ACCOUNTING SYSTEM THAT BARS USE OF ALIASES BY EXPEDITING DRAINAGE OF FUNDS FROM THE HUGE UNDERGROUND ECONOMY IN SINGAPORE BUYING OF BLUE CHIPS PUSHED THE MARKET HIGHER THOUGH PROFITTAKING ERODED EARLY GAINS AMONG CORPORATE DEVELOPMENTS IN LONDON LUCAS INDUSTRIES JUMPED 12 PENCE OR 77 TO 167 PENCE 257 THE AEROSPACE AND AUTO PARTS COMPANY'S PRETAX PROFIT FOR THE YEAR ENDED JULY 31 MORE THAN DOUBLED TO 503 MILLION 773 MILLION FROM 225 MILLION A YEAR EARLIER AS COST CUTS MORE THAN OFFSET PRESSURES IN LUCAS'S MARKETS FROM DETERIORATING ECONOMIC CONDITIONS THE DIVIDEND WHICH SOME ANALYSTS HAD EXPECTED TO BE HALVED WAS MAINTAINED AT 7 PENCE A SHARE AS AN ALTERNATIVE LUCAS WILL OFFER SHAREHOLDERS A 50 ENHANCED SCRIP DIVIDEND 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 9310120002 931012 TRAMMELL CROW WINS CONTRACT WITH MOBIL TO MANAGE PROPERTIES DALLAS TRAMMELL CROW CO WILL TAKE OVER MANAGEMENT OF 3300 MOBIL CORP REALESTATE PROPERTIES NATIONWIDE UNDER ONE OF THE LARGEST OUTSOURCING CONTRACTS WON BY THE DEVELOPER TRAMMELL CROW WHICH ALREADY HANDLES REALESTATE ASSETS FOR EXXON CORP AND BAXTER INTERNATIONAL INC THROUGH ITS TRAMMELL CROW CORPORATE SERVICES UNIT WILL PLACE A TEAM AT MOBIL'S FAIRFAX VA HEADQUARTERS THE PRIVATE COMPANY WILL MANAGE THE PORTFOLIO OF SERVICE STATIONS PLANTS AND TERMINALS FOR MOBIL'S US MARKETING DIVISION TRAMMELL CROW WHICH FELL ON HARD TIMES IN THE 1980S REALESTATE BUST FORMED ITS CORPORATE SERVICES VENTURE IN 1985 AND HAS BECOME A LEADER IN OUTSOURCING IN WHICH AN OUTSIDER IS HIRED TO RUN CERTAIN COMPANY FUNCTIONS IN THIS CASE REALESTATE MANAGEMENT THE DEVELOPER WOULD NOT DISCLOSE TERMS OF THE DEAL EXCEPT TO SAY IT WAS A MULTIYEAR MULTIMILLIONDOLLAR CONTRACT IT'S A SIGNIFICANT PIECE OF BUSINESS FOR US SAID DICK GALVIN MANAGING DIRECTOR OF TRAMMELL CROW CORPORATE SERVICES BASED IN STAMFORD CONN THIS IS AN EXTENSION OF A TREND BY MAJOR CORPORATIONS TO FOCUS ON THEIR CORE BUSINESS AND BRING IN OUTSIDE PARTNERS TO HELP THEM MANAGE THEIR REALESTATE ASSETS TRAMMELL CROW WILL SELECT SITES FOR NEW MOBIL GAS STATIONS AND HANDLE ACQUISITION OF LAND AS WELL AS MARKETING AND DISPOSING OF SURPLUS PROPERTY MOBIL'S OWN RESIDENTIAL LAND DEVELOPMENT UNIT IS NOT PART OF THE TRAMMELL CROW CONTRACT MR GALVIN SAID TRAMMELL CROW IS ALSO CURRENTLY A FINALIST FOR A SIMILAR OUTSOURCING CONTRACT WITH AMERITECH CORP 9310120001 931012 MONDAY'S MARKETS STOCKS INCH UP IN DULL TRADING DOLLAR GAINS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES DRIFTED HIGHER IN QUIET HOLIDAY TRADING THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE GAINED 867 POINTS TO 359341 STANDARD & POOR'S 500STOCK INDEX ROSE 057 TO 46088 AND THE NASDAQ COMPOSITE INDEX CLIMBED 338 TO A RECORD 76765 STOCK MARKET TRADING WAS THIN LARGELY BECAUSE OF THE COLUMBUS DAY HOLIDAY BUT ANALYSTS SAID AN ABSENCE OF TRADING IN THE BOND MARKET WHICH WAS CLOSED FOR THE HOLIDAY CONTRIBUTED TO THE LACK OF DIRECTION IN STOCKS WITHOUT THE BOND MARKET STOCKS HAD NO LEADER SAID WALTER C REVIS MARKET ANALYST AT HAMILTON INVESTMENTS IN CHICAGO THE GENERAL WAS GONE BERNADETTE MURPHY DIRECTOR OF TECHNICAL ANALYSIS AT MONEY MANGEMENT FIRM M KIMELMAN & CO BELIEVES THE STOCK MARKET IS OVERVALUED AND HEADED FOR A SHORTTERM DECLINE OF ABOUT 5 ON THE INDUSTRIAL AVERAGE IN THE SECOND HALF OF THIS MONTH BUT SHE ADDED THAT SHE IS STILL BULLISH LONGER TERM SHE THINKS BIG INSTITUTIONAL INVESTORS WILL INCREASINGLY SEEK HIGHER GAINS IN STOCKS AS INTEREST RATES REMAIN LOW I WOULDN'T BE SURPRISED TO SEE AN INCREASE IN THE EQUITY ALLOCATION OF LARGE PENSION FUNDS MS MURPHY SAID BUT IT'S A SLOWMOVING TREND WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 005 TO 11329 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 1826 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1029 ISSUES ROSE AND 943 FELL THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16048 MARKS AND 10625 YEN COMPARED WITH 16025 MARKS AND 10590 YEN FRIDAY 9310120125 930928 LETTERS TO THE EDITOR HYDROQUEBEC LOOMS AS A POSSIBLE WHOOPS YOUR AUG 19 ARTICLE DOES THE FUTURE HOLD ANOTHER WHOOPS' 10 YEARS AFTER COLLAPSE OF THE WORLD'S BIGGEST INVESTMENT IN NUCLEAR POWER BY THE WASHINGTON PUBLIC POWER SYSTEM THE ANSWER IS MAYBE HYDROQUEBEC FOR THE PAST FIVE YEARS THIS QUEBECGOVERNMENT OWNED UTILITY HAS RESUMED ONE OF THE SINGLE MOST EXPENSIVE INVESTMENT PROGRAMS IN WORLD HISTORY A BIG PART OF IT FINANCED BY US PENSIONERS AND STILL PLANS TO SPEND 38 BILLION MORE IN GRANDIOSE HYDROELECTRIC FACILITIES THIS DECADE ESTIMATES BEYOND THAT POINT A CLOSELY GUARDED STATE SECRET RANGE AS HIGH AS 200 BILLION THIS ALREADY LEAVES THE WOULDBE REPUBLIC OF QUEBEC WITH THE HIGHEST RELATIVE DEBT IN THE INDUSTRIALIZED WORLD WITH A THIRD WORLD BURDEN OF SERVICING AND HYDROQUEBEC THE INDUSTRIALIZED WORLD'S MOST INDEBTED CORPORATION IN US DOLLARS A FOREIGN CURRENCY IF THAT WEREN'T ENOUGH HYDRO'S INVESTMENT PROGRAM IS NAGGED FOR BEING RECKLESS WITH THE ENVIRONMENT AND NATIVE PEOPLE YOUR FIVE ADMONITIONS TO INVESTORS ARE RIGHT ON AVOID POLITICAL FOOTBALLS APPLIES TO THE LONGSTANDING DISPUTE WITH INDIANS OVER THE LAND AND WITH A QUILT OF CONSERVATIONISTS ENVIRONMENTALISTS RATE PROTESTERS AND FREEMARKET ENERGY PROMOTERS AVOID HUGE PROJECTS WITHOUT ESTABLISHED REVENUE STREAMS APPLIES TO HYDRO'S USE OF AN ESCALATINGCOST TECHNOLOGY IN THE DECLININGCOST BUSINESS OF GENERATING ELECTRICITY IN NORTH AMERICA WHILE THE GOVERNMENT HAS BEEN FORCED TO STOP HYDRO FROM RAISING RATES TO LEVELS REQUIRED AVOID ANY PROJECT REQUIRING A NEW TAX TO PAY OFF THE DEBT APPLIES TO HYDRO'S GOAL OF NOW KEEPING ONLY 10 INTEREST COVERAGE MEANING INVESTORS WILL HAVE TO LOOK TO HYDRO'S GUARANTOR THE PROVINCIAL GOVERNMENT DON'T GO BY BOND RATINGS ALONE APPLIES TO RECENT DOWNGRADINGS OF HYDRO'S BONDS AT THE FIRST SIGN OF TROUBLE SELL APPLIES TO QUEBEC'S DEEP RECESSION AGGRAVATED BY ECONOMIC NATIONALISM NEW YORK'S CANCELLATION OF HYDROQUEBEC'S MAJOR EXPORT CONTRACT DIMMING PROSPECTS OF ENOUGH EXPORTS TO PROVIDE THE US CURRENCY TO SERVICE EXISTING US DOLLAR DEBT AND THE US MANDATED END OF CUTRATE POWER DEALS TO OFFSHORE METALS PRODUCERS SELLING INTO THE US MARKET IS THIS SERIOUS TROUBLE MAYBE ANOTHER WPPSS SEE RELATED LETTER LETTERS TO THE EDITOR HYDROQUEBEC FINANCES ROCK SOLID STUDY SAYS WSJ OCT 12 1993 9309280078 YY93 MM10 9310120099 930903 THE AMERICAS A NEW CHANCE FOR PEACE IN GUATEMALA BY FRANCISCO VILLAGRAN DE LEON GUATEMALA CITY THE ASCENT OF RAMIRO DE LEON CARPIO TO THE GUATEMALAN PRESIDENCY IN THE WAKE OF A FAILED COUP IN JUNE HAS RAISED HOPES BOTH DOMESTICALLY AND INTERNATIONALLY THAT AN END TO THE COUNTRY'S 30YEAROLD ARMED CONFLICT IS FINALLY IN SIGHT THE FORMER HUMAN RIGHTS OMBUDSMAN WAS SWEPT TO POWER BY A PRODEMOCRACY MOVEMENT THAT THWARTED HIS PREDECESSOR'S EFFORTS TO SEIZE DICTATORIAL POWER AND IN THE WAKE OF THE COUP HAS LAUNCHED A CAMPAIGN TO PURGE CORRUPT MEMBERS OF CONGRESS AND THE SUPREME COURT THROUGH CONSTITUTIONAL MEANS AS A RESULT MR DE LEON CARPIO HAS BOTH THE POPULARITY AND THE DEMOCRATIC CREDENTIALS HE NEEDS TO LEAD HIS COUNTRYMEN TOWARD DEMOCRACY AND PEACE UNFORTUNATELY IT IS NOT YET CLEAR THAT THIS UNIQUE OPPORTUNITY WILL BE SEIZED THE PROBLEM IS NOT WITH THE NEW PRESIDENT LESS THAN EIGHT WEEKS AFTER TAKING OFFICE MR DE LEON CARPIO PRESENTED A NEW PEACE PROPOSAL IN JULY AIMED AT RENEWING STALLED TALKS BETWEEN THE GOVERNMENT AND LEADERS OF GUATEMALA'S MARXIST GUERRILLA INSURGENCY HIS PROPOSAL IS AIMED AT BRINGING ABOUT A QUICKER END TO THE CONFLICT BY SIMPLIFYING THE AGENDA AND PROCEDURES FOR ACHIEVING PEACE THE PROPOSAL BUILDS ON NEARLY TWO YEARS OF NEGOTIATIONS BETWEEN FORMER PRESIDENT JORGE SERRANO'S GOVERNMENT AND THE UMBRELLA GUERRILLA ORGANIZATION THE GUATEMALAN NATIONAL REVOLUTIONARY UNION URNG PRIOR TO THE RECENT COUP THOSE TALKS HAD SLOWED TO A SNAIL'S PACE IN LARGE PART BECAUSE THE TWO SIDES WERE TRYING TO TACKLE TOO MUCH RATHER THAN CONCENTRATE ON HOW TO ACHIEVE A CEASEFIRE AND INTEGRATE THE GUERRILLAS BACK INTO SOCIETY THE TALKS HAD EXPANDED TO INCLUDE LARGER POLITICAL AND SOCIAL ISSUES SUCH AS LAND TENURE THE RIGHTS OF INDIGENOUS PEOPLE THE SIZE AND MISSION OF THE GUATEMALAN ARMED FORCES AND EVEN THE ROLE OF THE STATE IN THE ECONOMY MR DE LEON CARPIO'S NEW PROPOSAL RECASTS THE TALKS AS AN EFFORT TO END THE ARMED CONFLICT RATHER THAN AS A PANACEA FOR ALL THE COUNTRY'S ILLS HE PROPOSES INTERNATIONAL MEDIATION BY A PARTY SUCH AS THE UNITED NATIONS OR THE ORGANIZATION OF AMERICAN STATES TO ACHIEVE A BREAKTHROUGH ON THE KEY ISSUES OF THE ARMED CONFLICT ITSELF DEMOBILIZING THE GUERRILLAS AND DOWNSIZING THE ARMY GRANTING AMNESTY FOR THE INSURGENTS AND PROVIDING PROTECTIONS FOR HUMAN RIGHTS AND GUARANTEES FOR THE INSURGENTS TO PARTICIPATE IN THE POLITICAL PROCESS THE INTERMEDIARY WOULD ALSO PROVIDE VERIFICATION OF BOTH SIDES' COMPLIANCE WITH AN EVENTUAL ACCORD TO DEAL WITH THE LARGER LONGERTERM ISSUES HE PROPOSES THE ESTABLISHMENT OF A PERMANENT PEACE FORUM THROUGH WHICH OTHER KEY SECTORS OF GUATEMALAN SOCIETY CAN JOIN IN THE DISCUSSIONS DESPITE THE PROMISE THIS PROPOSAL HOLDS URNG LEADERS HAVE SO FAR RESPONDED COOLLY TO THE NEW PRESIDENT THEY SEEM BENT ON PRESERVING THE EXPANDED AGENDA ARGUING THAT THE LONGERTERM PROBLEMS ARE PRECISELY THE REASONS THEY ORIGINALLY TOOK UP ARMS THIS OBJECTION IS AT BEST MISGUIDED AND AT WORST DISINGENUOUS IT IS NEITHER REALISTIC NOR FAIR FOR THE GUERRILLAS TO EXPECT COMPLEX AND LONGSTANDING PROBLEMS TO BE SOLVED AS PART OF BILATERAL NEGOTIATIONS BETWEEN THEM AND THE GOVERNMENT MAJOR SECTORS OF GUATEMALAN CIVIL SOCIETY INCLUDING BUSINESS PROFESSIONAL INDIGENOUS LABOR AND POPULAR SECTORS HAVE VIEWS THAT DIFFER FROM THE INSURGENTS' ON THESE ISSUES AND THEY BOTH DEMAND AND DESERVE A PLACE IN DISCUSSIONS ABOUT THEM THE PERMANENT PEACE FORUM WOULD PROVIDE JUST SUCH AN OPPORTUNITY FOR OPEN MULTILATERAL PROBLEM SOLVING THE GUERRILLAS ARE IN FACT IN A WEAK POSITION TO BE DEMANDING SUCH A DECISIVE SAY ON THEIR COUNTRY'S FUTURE UNLIKE THE SALVADORAN GUERRILLAS GUATEMALA'S URNG ONE OF THE HEMISPHERE'S LAST REMAINING INSURGENCIES WHOSE ACTIVE COMBATANTS NUMBER FEWER THAN 800 HAS NEITHER THE POLITICAL WEIGHT NOR THE MILITARY MUSCLE TO GIVE IT THE LEVERAGE NEEDED TO BRING ABOUT PROFOUND SOCIAL CHANGES THROUGH NEGOTIATIONS IN THIS REGARD GUATEMALA RESEMBLES LESS EL SALVADOR THAN COLOMBIA WHERE THE CAPACITY OF REBEL GROUPS TO EFFECTIVELY OBSTRUCT THE COUNTRY'S ECONOMIC AND POLITICAL DEVELOPMENT HAS DIMINISHED DRAMATICALLY THE REASONS FOR THE GUERRILLA'S CURRENT INTRANSIGENCE ARE NOT CLEAR IT IS POSSIBLE THEY HAVE AN EXAGGERATED SENSE OF THEIR OWN POWER SOMETHING FORMER PRESIDENT SERRANO MAY HAVE UNWITTINGLY ENCOURAGED BY GIVING THE PEACE TALKS A HIGH PROFILE IN A BID TO ENHANCE HIS OWN DOMESTIC AND INTERNATIONAL STANDING OR PERHAPS THE GUERRILLAS AFTER SO MANY YEARS AND SO MUCH LOSS OF LIFEARE SIMPLY HOLDING OUT FOR GREATER VINDICATION FOR THEIR LONG FIGHT THERE IS ALSO THE DARKER POSSIBILITY THAT THEY PREFER TO CONTINUE THE ARMED CONFLICT BELIEVING THAT FURTHER INTENSIFICATION OF GUATEMALA'S ETHNIC DIVISIONS WILL IN THE END ACCORD THEM A GREATER ROLE IN THE COUNTRY'S FUTURE WHAT IS CLEAR IS THAT THE GULF BETWEEN THE GUERRILLAS' DEMANDS AND THE NEEDS OF THE MAJORITY OF CIVIL SOCIETY HAS BEEN STEADILY WIDENING SINCE GUATEMALA RETURNED TO CIVILIAN DEMOCRACY IN THE MID1980S NOWHERE WAS THIS CLEARER THAN IN THE FAILED COUP ATTEMPT IN MAY AND JUNE IN WHICH GUATEMALAN CIVIL SOCIETY MOBILIZED IN A SUCCESSFUL EFFORT TO DEFEND DEMOCRACY AND RESTORE CONSTITUTIONAL ORDER RATHER THAN ENDORSE THAT EFFORT THE GUERRILLAS CHOSE TO ESCHEW THE CONSTITUTIONAL PATH TO RESOLVING THE CRISIS THEY SEEMED TO ASSUME THAT IF CONDITIONS DETERIORATED INTO ANARCHY AND VIOLENCE THERE MIGHT BE A MORE RADICAL OUTCOME THE PEACEFUL AND DEMOCRATIC RESOLUTION TO THE CRISIS DEALT THE GUERRILLAS A MAJOR POLITICAL BLOW AND UNDERSCORES THEIR FAILURE TO IDENTIFY WITH THE ASPIRATIONS OF MOST GUATEMALANS JUST AS THE END OF THE COLD WAR HAS BROUGHT THE DEMISE OF THE IDEOLOGICAL MODELS OF THE RADICAL LEFT SO IT HAS ALSO CREATED THE CONDITIONS FOR THEM TO PARTICIPATE ONCE AGAIN IN SOCIETY AND THE NORMAL POLITICAL PROCESS WHILE ONE CANNOT ARGUE WITH THEM ABOUT THE DEPTH OF THE DIVISIONS IN GUATEMALAN SOCIETY NOR THE INTRACTABILITY OF MANY OF THE COUNTRY'S PROBLEMS THE GUERRILLAS TOO MUST RECOGNIZE THAT MOST GUATEMALANS ARE COMMITTED TO OVERCOMING VIOLENT CONFRONTATION AND REPLACING IT WITH MECHANISMS FOR DIALOGUE FOLLOWING THE IMPRESSIVE SHOW OF DEMOCRATIC SOLIDARITY THE MAJORITY OF GUATEMALA'S CITIZENS ARE READY NOW MORE THAN EVER TO GET ON WITH BUILDING A SOCIETY WHERE SOCIAL AND POLITICAL CONFLICTS ARE RESOLVED THROUGH NEGOTIATION AND COMPROMISE RATHER THAN THROUGH THE BARREL OF A GUN THEY HAVE EARNED THE RIGHT TO PEACE AND DEMOCRACY AND THEY DESERVE THE COOPERATION OF ALL THEIR COUNTRYMEN AS WELL AS THE SUPPORT OF THE INTERNATIONAL COMMUNITY IN CLAIMING THEIR REWARD MR VILLAGRAN A FORMER GUATEMALAN AMBASSADOR TO THE UNITED NATIONS IS A MEMBER OF THE BOARD OF THE CENTER FOR THE DEFENSE OF THE CONSTITUTION IN GUATEMALA CITY SEE RELATED LETTER LETTERS TO THE EDITOR THE REAL ROADBLOCKS TO GUATEMALAN PEACE WSJ OCT 12 1993 9309030080 YY93 MM10 9310120066 930902 WHAT THE WEST MUST DO IN BOSNIA THE FOLLOWING IS THE TEXT OF AN OPEN LETTER PRESENTED TO PRESIDENT CLINTON YESTERDAY IN BOSNIA THE SITUATION GOES FROM BAD TO WORSE THE PEOPLE THERE ARE IN DESPAIR ABOUT THEIR FUTURE THEY ARE VICTIMS OF BRUTAL AGGRESSION BUT THEY ARE ALSO THE VICTIMS OF THE FAILURE OF THE DEMOCRACIES TO ACT INSTEAD OF OPPOSING THE ACQUISITION OF TERRITORY BY FORCE THE UNITED NATIONS AND THE DEMOCRACIES HAVE DISPATCHED HUMANITARIAN ASSISTANCE TO BOSNIA BUT WELCOME AS IT IS THIS WILL NOT STOP THE MASSACRES OR HALT THE ETHNIC CLEANSING HUMANITARIAN AID WILL NOT PROTECT THE BESIEGED CHILDREN OF BOSNIA FROM BEING HERDED INTO MUSLIM GHETTOS OR ORPHANED OR MAIMED OR SLAUGHTERED THESE COULD HAVE BEEN OUR CHILDREN IF WE DO NOT ACT IMMEDIATELY AND DECISIVELY HISTORY WILL RECORD THAT IN THE LAST DECADE OF THIS CENTURY THE DEMOCRACIES FAILED TO HEED ITS MOST UNFORGIVING LESSON THAT UNOPPOSED AGGRESSION WILL BE ENLARGED AND REPEATED THAT A FAILURE OF WILL BY THE DEMOCRACIES WILL STRENGTHEN AND ENCOURAGE THOSE WHO GAIN TERRITORY AND RULE BY FORCE IN BOSNIA THE DEMOCRACIES HAVE USED THE NEED TO DELIVER HUMANITARIAN AID BOTH TO EXCUSE THEIR OWN INACTION AND TO KEEP THE RECOGNIZED MULTIETHNIC STATE OF BOSNIA OUTGUNNED AND THEREFORE ITSELF UNABLE TO PROTECT ITS CIVILIAN CENTERS FROM SLAUGHTER BY A DICTATOR BENT ON MAKING A GREATER SERBIA WESTERN GOVERNMENTS NOW VYING PUBLICLY TO SAVE SEVERAL HUNDRED MAIMED BOSNIAN CHILDREN WILL NOT ESCAPE THE RESPONSIBILITY THEY ASSUMED FOR THE SLAUGHTER OF HUNDREDS OF THOUSANDS OF OTHER CHILDREN AND THEIR PARENTS WHEN THEY REFUSED TO LET AN INDEPENDENT BOSNIA DEFEND ITSELF RECENTLY THE UN AND EC MEDIATORS WITH US SUPPORT THREATENED TO WITHDRAW HUMANITARIAN AID IN ORDER TO COERCE THE BOSNIAN GOVERNMENT INTO ACCEPTING VIOLENT CHANGES IN ITS BORDERS AND A PARTITION INTO ETHNICALLY PURE STATES WITH BOSNIA A SET OF WIDELY DISPERSED UNARMED MUSLIM GHETTOS BUT THE UN THE EC AND THE US HAVE CONTINUALLY CONDEMNED SUCH CHANGES AND THAT PARTITION AS TOTALLY UNACCEPTABLE SUCH A PARTITION THEY'VE SAID IS UNSTABLE IT WILL MEAN STILL MORE KILLING BROKEN FAMILIES AND THE EXPULSION OF MILLIONS AT A TIME WHEN EUROPE IS CLOSING ITS DOORS TO REFUGEES IF THE FALL OF SARAJEVO IS A PREFACE TO A PARTITION CREATING UNARMED MUSLIM GHETTOS IT WILL BE A PREFACE ALSO TO FURTHER DISASTERS ETHNIC CLEANSING AND INSTABILITY IN SARAJEVO ITSELF AND OTHER BOSNIAN SAFE HAVENS PROTECTED ONLY BY THE UN IN THE REST OF THE BALKANS AND BEYOND BOSNIA UNLIKE SOMALIA WAS NO CIVIL WAR LIKE KUWAIT IT WAS A CASE OF CLEARCUT AGGRESSION AGAINST A MEMBER OF THE UN A MEMBER WHOSE INDEPENDENCE THE US EUROPE AND THE INTERNATIONAL COMMUNITY HAVE RECOGNIZED FOR AT LEAST 16 MONTHS WHEN THE BAATH DICTATORSHIP SEIZED ALL OF KUWAIT IN AUGUST 1990 IT TRIED TO ERASE KUWAITI IDENTITY USING RAPE TORTURE THE SEIZURE OF KUWAITI PASSPORTS AND THE FORGING OF A NEW IDENTITY OF KUWAIT AS A PROVINCE OF IRAQ A COALITION OF SEVERAL NATO POWERS AND SOME NONNATO COUNTRIES JOINED THE US IN DEMANDING AND THEN IN JANUARY 1991 COMPELLING IRAQ'S WITHDRAWAL BY USING FIRST AIR POWER THROUGHOUT IRAQ AND THEN GROUND FORCES IN KUWAIT AND SOUTHERN IRAQ THE COALITION WAS EXERCISING THE RIGHT OF INDIVIDUAL AND COLLECTIVE SELFDEFENSE OF EACH OF ITS MEMBERS AND OF KUWAIT IT AIMED AT MORE THAN MITIGATING KUWAIT'S SUFFERING THE UN ENDORSED THE COALITION'S AIM TO GET IRAQ OUT OF KUWAIT AND THE AIMS BEYOND KUWAIT TO REDUCE IRAQ'S POWER TO TERRORIZE ITS NEIGHBORS BUT THE UN EXERCISED NO AUTHORITY OVER THE COALITION IN THE SAME WAY THE US SHOULD NOW LEAD A COALITION OF WESTERN GOVERNMENTS THAT EXERCISES THE RIGHT OF EACH TO INDIVIDUAL AND COLLECTIVE SELFDEFENSE THE UN CHARTER DOES NOT CONFER THAT RIGHT IT ACKNOWLEDGES IT TO BE INHERENT NOR IS THAT RIGHT CONDITIONED ON THE SECRETARYGENERAL'S APPROVAL WESTERN GOVERNMENTS SHOULD ACT NOW SUBSTANTIALLY TO REDUCE SERBIA'S IMMEDIATE AND FUTURE POWER OF AGGRESSION AND ULTIMATELY TO PUT THE BOSNIANS IN A POSITION WHERE THEY WON'T HAVE TO RELY INDEFINITELY ON THE PROTECTION OF THE INTERNATIONAL COMMUNITY WITH THIS LIMITED POLITICAL AIM WESTERN AIR POWER WOULD PLAY A MUCH LARGER ROLE AND US AND OTHER WESTERN GROUND FORCES A MUCH SMALLER AND MORE TRANSIENT ROLE THAN IN UNDIRECTED OPTIONS THAT LOOK TOWARD AN INDEFINITE FUTURE OF PROTECTING ON THE GROUND HELPLESS MUSLIM GHETTOS AND BESIEGED CORRIDORS OF SUPPLY TO THEM THE GHETTOS AND THE CORRIDORS TO THEM WOULD BE SUBJECT TO CONTINUING ARTILLERY ARMOR AND SNIPER ATTACKS SO LONG AS THE SOURCE OF THESE ATTACKS IN SERBIA IS LEFT INTACT AIR POWER DIRECTED AGAINST THE PRESENT AND FUTURE POTENTIAL SOURCES OF SUCH ATTACK CAN BE USED SELECTIVELY AND DISCRIMINATELY THE NOFLY ZONE COULD BE ENFORCED AND DEFENSES SUPPRESSED OVER SERBIA AS WELL AS BOSNIA AND A VERY HIGH PERCENTAGE OF THE MILITARY AIRCRAFT ON THE LARGE AIRFIELDS IN SERBIA COULD BE DESTROYED WITH MINIMAL DANGER TO SERBIAN CIVILIANS OR TO UNPROFOR UN PROTECTIVE FORCE TROOPS THE UN ALTERNATIVES MEAN A FUTURE OF ETHNIC CLEANSING AND ENDLESS MILITARY PROTECTION BY THE INTERNATIONAL COMMUNITY WHAT THE WEST SAYS AND DOES NOW IN BOSNIA WILL AFFECT THE FUTURE IN BOSNIA ITSELF IN THE REST OF THE BALKANS AND IN OTHER NEWLY INDEPENDENT COUNTRIES THAT HAVING GAINED THEIR FREEDOM WHEN A COMMUNIST DICTATORSHIP FELL APART NOW FIND THAT FREEDOM THREATENED BY FORMER RULERS WHO WOULD LIKE MILOSEVIC USE THE PRETEXT OF PROTECTING MINORITIES TO RETAKE STRATEGIC FACILITIES AND TERRITORY THAT THEIR PANNATIONAL MILITARY HAS NEVER BEEN RECONCILED TO GIVING UP EVEN NOW AFTER 16 MONTHS OF A PERVERSE WESTERN POLICY PIOUSLY CONDEMNING THE PANSERBIAN AGGRESSORS WHILE DOING NOTHING TO STOP THE MASSACRES THE WEST CAN USE MILITARY FORCE SUBSTANTIALLY AND DISCRIMINATELY TO REDUCE THE POWER OF THE POORLY MOTIVATED AND ILLDISCIPLINED SERBIAN ARMY IN BOSNIA AND ITS SOURCE OF SUPPORT IN SERBIA ITSELF AND THE WEST CAN HELP ARM THE LARGER HIGHLY MOTIVATED BOSNIAN ARMY THAT STILL MAINTAINS A PRECARIOUS CONTROL OF THE TOWNS CONTAINING MOST OF BOSNIA'S INDUSTRY INCLUDING ITS WEAPONS INDUSTRY IN THIS WAY THE WEST CAN IMPROVE THE ODDS FOR THE SURVIVAL OF A FREE MULTIETHNIC BOSNIA ON THE OTHER HAND IF WESTERN MEDIATORS AND UNPROFOR CONFINE UNARMED BOSNIAN MUSLIMS TO SMALL PURIFIED REMNANTS OF BOSNIA THE PUBLIC WILL WATCH WITH HORROR AS THESE GHETTOS DISAPPEAR BEFORE ITS EYES ON TELEVISION WHILE SERBS VIOLATE THIS CEASEFIRE AS THEY HAVE ALL THE OTHERS FOR 23 MONTHS IN CROATIA AND BOSNIA A SPECTACULAR DISPLAY AT THE SAME TIME OF THE UNSHAKABLY NAIVE FAITH IN SERBIAN PROMISES THAT UNDERLIES WESTERN CYNICISM REALPOLITIK REVEALED AS FANTASY IN REAL TIME EVEN IF LIKE KUWAIT IN AUGUST 1990 ALL BOSNIA AND NOT JUST SARAJEVO WERE SEIZED IT WOULD BE ESSENTIAL FOR THE DEMOCRACIES TO MAKE CLEAR AS THEY DID IN THE CASE OF KUWAIT THAT VIOLENT BORDER CHANGES AND ETHNIC CLEANSING WILL NOT STAND WHETHER BY SERBIA IN CROATIA AND BOSNIA OR BY CROATIA IN BOSNIA IF THE WEST DOES NOT MAKE THAT CLEAR IT WILL HAVE NOTHING PERSUASIVE TO SAY TO THE CROATS AND THE SERBS WHO HAVE ALREADY RENEWED THE CONFLICT SERBIA STARTED TWO YEARS AGO WHEN IT USED THE YUGOSLAVIAN ARMY TO SEIZE TERRITORY IN CROATIA AND THEN TURNED TO INVADING BOSNIA NOR WILL THE WEST BE ABLE TO STOP SERBIAN ETHNIC CLEANSING OF ALBANIANS IN KOSOVO AND OF HUNGARIANS IN VOJVODINA IN MACEDONIA UNRECOGNIZED BY EITHER THE US OR EUROPE BECAUSE THE GREEKS OBJECT WHERE THE US AND SWEDEN HAVE DEPLOYED GROUND FORCES WITH NO CLEAR PURPOSE WESTERN POLICY SEEMS EVEN MURKIER THAN FOR THE OTHER FORMER YUGOSLAVIAN REPUBLICS THERE THE WEST WILL HAVE NOTHING COHERENT TO SAY TO RESOLVE POTENTIAL CONFLICTS AMONG GREEKS SERBS ALBANIANS BULGARIANS TURKS AND FRUSTRATED MACEDONIAN NATIONALISTS WHO MAY TOPPLE THE MODERATE GRIGOROV FINALLY THE WEST WILL HAVE NOTHING TO SAY TO DISCOURAGE THE NOW SERIOUS THREAT PRESENTED BY PANNATIONALISTS IN THE FORMER SOVIET UNION AND ELSEWHERE EMPTY THREATS HAVE A PERVERSE EFFECT AGAINST A DICTATOR WHO WILL YIELD ONLY TO SUPERIOR FORCE THE WEST CAN THREATEN MOST FEROCIOUSLY IN THE HOPE THAT THREATS ALONE WILL BE ENOUGH TO STOP AGGRESSION THAT ITS THREATS AND ENDLESS PREPARATIONS WILL SEND A MESSAGE BUT IF THE WEST DOESN'T USE FORCE AT ALL OR IF IT USES IT SYMBOLICALLY RATHER THAN SUBSTANTIALLY TO REDUCE MILOSEVIC'S POWER OR IF IT USES FORCE TO COERCE BOSNIAN CAPITULATION THE MESSAGE RECEIVED WILL ONLY BRING AMERICAN AND WESTERN RESOLVE INTO CONTEMPT SEE RELATED ARTICLE THE CASE AGAINST SERBIA AGAIN WSJ OCT 12 1993 9309020060 YY93 MM10 9310110168 931011 REPORT ON EUROPEAN UNEMPLOYMENT UP FOR DEBATE AT SUMMIT EC MEETING BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL GENVAL BELGIUM JUST TWO MONTHS BEFORE A EUROPEAN COMMUNITY SUMMIT DEVOTED TO REVERSING THE COMMUNITY'S STAGGERING UNEMPLOYMENT RATE THE DETAILS OF A LONGAWAITED EC COMMISSION WHITE PAPER ON JOB CREATION ARE EMERGING THE COMMISSION PRESIDENT JACQUES DELORS TOLD EC FINANCE MINISTERS AT A LAKESIDE RETREAT HERE THIS WEEKEND THAT HE SEEKS TO SLASH THE JOBLESS FIGURE TO 7 BY THE END OF THE CENTURY FROM THE CURRENT 11 FIGURE CONCEDING THAT EC ECONOMIES WOULD BE SLUGGISH FOR THE NEXT TWO YEARS HE SAID THE COMMUNITY SHOULD SEEK 3 ANNUAL GROWTH BEGINNING IN 1996 BASED ON A LOWERING OF INTEREST RATES AND A BOOST IN INVESTMENT THE EC'S GROSS DOMESTIC PRODUCT IS FORECAST TO DECLINE BY 05 THIS YEAR AND INCREASE BY ONLY 125 IN 1994 WHEN THE JOBLESS RATE IS EXPECTED TO TOP 12 OPTIMISTIC THE FRENCH ECONOMICS MINISTER EDMOND ALPHANDERY SAID OF MR DELORS'S GOALS INDICATING THE SKEPTICISM VOICED BY A GOOD NUMBER IN ATTENDANCE BUT HE TERMED THE PRESENTATION A GOOD STARTING POINT FOR WHAT PROMISES TO BE A SPIRITED DISCUSSION AFTER THE WHITE PAPER IS RELEASED SOME DIPLOMATS SAID HOWEVER THAT IT MIGHT BE FOLLY TO COMMIT THE EC TO SPECIFIC TARGETS THE EC SOCIAL AFFAIRS COMMISSIONER PADRAIG FLYNN IS EVEN MORE AMBITIOUS THAN MR DELORS IN HIS HOPES FOR REDUCING JOBLESSNESS WHAT I WOULD REGARD AS TOLERABLE AT THE END OF THE CENTURY IS BETWEEN 5 AND 6 UNEMPLOYMENT MR FLYNN SAID IN A RECENT INTERVIEW TO SHOW EUROPEAN PUBLICS THAT POLITICIANS ARE SERIOUS ABOUT TACKLING THE UNEMPLOYMENT PROBLEM MR DELORS SUGGESTED THAT JOBLESSNESS BE LINKED CLOSER TO THE MAASTRICHT TREATY'S RULES ON JOINING IN A SINGLE CURRENCY BUT HE STOPPED SHORT OF ACTUALLY PROPOSING THAT A NATION'S UNEMPLOYMENT RATE BE ADOPTED AS ONE OF THE ECONOMIC CONVERGENCE CRITERIA EVEN THE SUGGESTION RUFFLED SOME FEATHERS HOWEVER PRESAGING HOW PRICKLY THE DEBATE ON THE UNEMPLOYMENT PROBLEM IS GOING TO BE THIS CANNOT BE USED TO ADD A CONDITION THAT WAS NOT INCLUDED IN MAASTRICHT SAID PEDRO SOLBES THE FINANCE MINISTER OF SPAIN WHERE JOBLESSNESS STANDS AT 213 COMMISSION OFFICIALS SAY THE WHITE PAPER ENTERING THE 21ST CENTURY WILL BE COMPLETED SHORTLY BEFORE AN EC SUMMIT IN BRUSSELS BEGINNING DEC 10 WHILE MR DELORS PRESENTED FINANCE MINISTERS WITH ONLY A BROAD OUTLINE OF HIS THOUGHTS IT'S CLEAR FROM INTERVIEWS WITH MR FLYNN AND OTHER TOP OFFICIALS THAT SEVERAL SHARP THEMES WILL FIND THEIR WAY TO THE FINAL VERSION EUROPEAN GOVERNMENTS MUST MAKE IT EASIER TO HIRE AND FIRE WORKERS BUT THIS FLEXIBILITY MUST BE COUPLED WITH A NEW COMMITMENT TO PROVIDE LIFELONG TRAINING AND RETRAINING CRITICS SAY HOWEVER THAT THE COMMISSION'S HOPES FOR A TRUE SINGLE MARKET FOR LABOR WILL REMAIN A DREAM PARTTIME AND TEMPORARY WORK WILL BE AN EVERMORE IMPORTANT PART OF THE EC'S JOB MIX SUCH SITUATIONS REDUCE EMPLOYERS' COSTS BY AVOIDING SOME OF THE ONEROUS NONWAGE COSTS AND PENALTIES FOR FIRING THAT NOW APPLY TO FULLTIME PERMANENT WORKERS AN EC COMMISSION PROPOSAL TO PROVIDE MORE PROTECTION TO NONPERMANENT WORKERS HAS BEEN BOGGED DOWN FOR YEARS IN THE EC COUNCIL OF MINISTERS DUE TO OPPOSITION FROM BRITAIN AND OTHER COUNTRIES SAVINGS FOR EMPLOYERS MUST COME IN THE SECTOR OF NONWAGE COSTS SOCIAL SECURITY PAYMENTS AND THE LIKE RATHER THAN IN WAGE COSTS PARTICULARLY FOR LOWSKILLED WORKERS IT'S CLEAR THAT WE'RE NOT GOING TO ACCOMPLISH MUCH BY TRYING TO MAKE OUR LOWSKILLED WORKERS COMPETE WITH THOSE IN EASTERN EUROPE AND ASIA WHO GET PAID ONETWENTIETH OF OURS SAYS A SENIOR COMMISSION OFFICIAL FUNDING FOR SOCIAL BENEFITS NOW LARGELY BORNE BY EMPLOYERS SHOULD COME INCREASINGLY FROM TAXES ON SCARCE RESOURCES THE EC MUST GET A BIGGER BANG FROM ITS RESEARCH AND DEVELOPMENT SPENDING BUCKS 9310110167 931011 CANADIAN HOUSING STARTS RISE OTTAWA CANADIAN HOUSING STARTS IN SEPTEMBER ROSE 06 FROM AUGUST'S LEVEL TO A SEASONALLY ADJUSTED ANNUAL RATE OF 153600 UNITS SAID CANADA MORTGAGE AND HOUSING CORP A GOVERNMENT AGENCY 9310110166 931011 WHO'S NEWS INVESTMENT COMPANY INSTITUTE INVESTMENT COMPANY INSTITUTE WASHINGTON RONALD P LYNCH MANAGING PARTNER OF THE NEW YORK INVESTMENT MANAGEMENT FIRM LORD ABBETT & CO WAS REELECTED CHAIRMAN OF THIS MUTUAL FUND INDUSTRY TRADE GROUP 9310110165 931011 AUGUST BANKRUPTCIES IN CANADA OTTAWA CANADIAN BANKRUPTCIES TOTALED 5101 IN AUGUST A 68 DECLINE FROM 5476 IN THE YEAREARLIER PERIOD THE FEDERAL CONSUMER AND CORPORATE AFFAIRS DEPARTMENT SAID YEARTODATE BANKRUPTCIES THROUGH AUGUST TOTALED 45215 A 12 DECLINE FROM A YEAREARLIER 51470 9310110164 931011 WHO'S NEWS EXXON CORP EXXON CORP IRVING TEXAS DAN MENDELL III FORMERLY VICE PRESIDENT OF THE PRODUCTION DEPARTMENT OF THE US OPERATING AFFILIATE OF THIS ENERGY COMPANY WAS NAMED PRESIDENT OF ITS EXXON PRODUCTION RESEARCH CO AFFILIATE EFFECTIVE NOV 1 MR MENDELL SUCCEEDS FRED M PERKINS WHO PLANS TO RETIRE 9310110163 931011 POLITICS & POLICY DELTA'S BONUSES TO TRAVEL AGENTS SPUR INQUIRY ON ANTICOMPETITIVENESS QUESTION BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL THE JUSTICE DEPARTMENT IS RAISING QUESTIONS ABOUT THE FEES LARGE AIRLINES PAY TRAVEL AGENTS TO WIN CUSTOMERS BY INVESTIGATING THE BONUSES DELTA AIR LINES PAYS IN SALT LAKE CITY THE GOVERNMENT INQUIRY DREW QUICK FIRE FROM TRAVEL AGENTS WHO COULD LOSE SUBSTANTIAL FEES IF AIRLINES ARE PROHIBITED FROM SWEETENING AGENT COMMISSIONS BUT THE INVESTIGATION IS THE LATEST EXAMPLE OF THE CLINTON ADMINISTRATION'S COMMITMENT TO BOOSTING SMALL CARRIERS AGAINST ALLEGEDLY UNFAIR PRACTICES BY INDUSTRY GIANTS IN THIS CASE THE JUSTICE DEPARTMENT'S INQUIRY STEMS FROM DELTA'S CAT FIGHT WITH UPSTART RIVAL MORRIS AIR WHOSE LOWCOST SERVICE HAS CHIPPED AWAY AT DELTA'S MARKET DOMINANCE AT ITS SALT LAKE CITY HUB AT ISSUE IS WHETHER DELTA'S BONUS PAYMENTS TO TRAVEL AGENTS CALLED OVERRIDES CONSTITUTE ANTICOMPETITIVE PRACTICES DELTA BASED IN ATLANTA DENIES ANY WRONGDOING THE INVESTIGATION COULD HAVE A FARREACHING IMPACT BECAUSE PRACTICALLY ALL MAJOR AIRLINES USE OVERRIDES TO INCREASE MARKET SHARE IN HUB CITIES WHERE A LARGE NUMBER OF PASSENGERS IS NEEDED TO OFFSET THE HIGH COSTS OF OPERATING THE HUB CARRIERS TYPICALLY PAY TRAVEL AGENTS A 10 COMMISSION ON ALL TICKETS BUT THE AIRLINES KICK IN EXTRA MONEY THROUGH MARKETSHARE AGREEMENTS IN WHICH AGENTS PLEDGE TO SELL A PERCENTAGE OF THEIR SEATS ON A PARTICULAR AIRLINE SMALL CARRIERS INCLUDING MORRIS AIR COMPLAIN THAT THESE ARRANGEMENTS INFLUENCE TRAVEL AGENTS TO SELL TICKETS BASED UPON WHICH AIRLINE HAS THE RESOURCES TO OFFER THE BEST BONUSES NOT WHICH AIRLINE PROVIDES THE BEST SERVICE FOR FLIERS TRAVEL AGENTS SELL ABOUT 85 OF ALL AIRLINE TICKETS OVERRIDE AGREEMENTS ARE INHERENTLY ANTICOMPETITIVE SAID KENT COLLINS MORRIS AIR'S GENERAL COUNSEL THEY AREN'T FAIR TO THE PUBLIC BECAUSE EVEN IF WE HAVE A LOWER FARE THAN DELTA TRAVEL AGENTS MAY NOT MENTION US BECAUSE THEY MIGHT LOSE THE EXTRA COMMISSION THE JUSTICE DEPARTMENT'S INVESTIGATION INTO DELTA'S PRACTICES BEGAN THIS SUMMER AFTER MORRIS AIR COMPLAINED ABOUT THE TACTICS DURING HEARINGS BEFORE A FEDERAL COMMISSION ON THE AIRLINE INDUSTRY GOVERNMENT OFFICIALS SAID THE INQUIRY IS FOCUSING ON SALT LAKE CITY AND APPARENTLY NO OTHER AIRLINE HAS BEEN SERVED WITH REQUESTS FOR INFORMATION THE MOVE UNDERSCORES A BROADER POLICY DECISION BY THE CLINTON ADMINISTRATION THAT BIG CARRIERS AREN'T GOING TO BE ALLOWED TO HANDLE THE LITTLE GUYS IN A ROUGHSHOD FASHION SAID PATRICK V MURPHY THE TRANSPORTATION DEPARTMENT'S ACTING ASSISTANT SECRETARY FOR POLICY AND INTERNATIONAL AFFAIRS IN MARCH WINGS HOLDINGS INC'S NORTHWEST AIRLINES BACKED DOWN FROM HEADTOHEAD COMPETITION WITH NEVADABASED RENO AIR AFTER THE JUSTICE DEPARTMENT STARTED INVESTIGATING RENO AIR'S CHARGES THAT NORTHWEST WAS ILLEGALLY TRYING TO SQUEEZE THE UPSTART AIRLINE OUT OF THE MINNEAPOLISRENO NEV MARKET THE MORRIS AIRDELTA BATTLE IS A SIMILAR DAVIDANDGOLIATH AFFAIR MORRIS WHICH BEGAN AS A SCHEDULED CARRIER IN DECEMBER HAS ONLY 20 PLANES SERVING 23 CITIES BUT IT HAS 15 OF THE SALT LAKE CITY MARKET COMPARED WITH DELTA'S 50 AND HAS FORCED DELTA TO SLASH FARES IN MARKETS WHERE BOTH AIRLINES COMPETE MR COLLINS OF MORRIS SAID HIS AIRLINE HAS LOST TRAVEL AGENT BUSINESS SINCE MORRIS BEGAN PUBLICLY REPORTING ITS AGENT SALES IN MAY THE INFORMATION HE SAID ENABLES DELTA TO PRESSURE AGENTS INTO BOOKING AWAY FROM MORRIS OR RISK LOSING THEIR OVERRIDE COMMISSIONS A DELTA SPOKESWOMAN SAID THE CARRIER IS COOPERATING WITH THE JUSTICE DEPARTMENT AND THAT THE COMPANY HAS DONE NOTHING OUT OF THE ORDINARY WE ARE CONFIDENT WE'VE CONDUCTED OUR BUSINESS IN ACCORDANCE WITH ALL LAWS AND REGULATIONS SHE SAID TRAVEL AGENTS WILL BE AMONG THE BIGGEST LOSERS IF THE JUSTICE DEPARTMENT FINDS THAT OVERRIDES ARE ANTICOMPETITIVE PAUL RUDEN SENIOR VICE PRESIDENT FOR THE AMERICAN SOCIETY OF TRAVEL AGENTS SAID THE CURRENT INVESTIGATION IS TANTAMOUNT TO THE GOVERNMENT PICKING WINNERS AND LOSERS IN THE AIRLINE INDUSTRY IT'S DIFFICULT TO SEE HOW OVERRIDES WITH TRAVEL AGENTS WHICH IS COMMON IN ALL INDUSTRIES IS WRONG MR RUDEN SAID MORRIS AIR IS FREE TO OFFER THE SAME INCENTIVES JOE DAVIDSON AND DANIEL PEARL CONTRIBUTED TO THIS ARTICLE 9310110162 931011 CANADIAN JOBLESS RATE DECLINES OTTAWA CANADA'S UNEMPLOYMENT RATE DECLINED TO 112 OF THE CIVILIAN LABOR FORCE IN SEPTEMBER FROM 113 IN AUGUST SAID STATISTICS CANADA A GOVERNMENT AGENCY THE DECLINE IN THE JOBLESS RATE RESULTED FROM A RISE OF 44000 OR 04 IN THE NUMBER OF PERSONS EMPLOYED IN SEPTEMBER THE MERCHANDISING SECTOR SHOWED THE BIGGEST EMPLOYMENT GAIN IN THE MONTH 9310110161 931011 US STEPS UP GOLDMAN SACHS INVESTIGATION FIRM'S ROLE IN THE CLEANUP OF BIG FAILED THRIFT IS SUBJECT OF INQUIRY BY GREG HITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION HAS ESCALATED ITS INVESTIGATION OF GOLDMAN SACHS & CO'S ROLE IN THE CLEANUP OF THE LARGEST SAVINGSANDLOAN ASSOCIATION EVER TAKEN OVER BY THE GOVERNMENT AT THE REQUEST OF THE RESOLUTION TRUST CORP'S OVERSIGHT BOARD HEADED BY TREASURY SECRETARY LLOYD BENTSEN THE AGENCY'S INSPECTOR GENERAL WILL EXPLORE WHETHER THE NEW YORK INVESTMENT BANK FULLY COMPLIED WITH ETHICS RULES WHILE SERVING AS AN UNDERWRITER OF SECURITIES SOLD AGAINST THE ASSETS OF THE FAILED HOMEFED BANK OF SAN DIEGO ACCORDING TO OFFICIALS IN ADDITION THE INSPECTOR GENERAL WILL SEEK TO DETERMINE WHETHER THE RTC OFFICIALS MODIFIED THE AGENCY'S ESTIMATED 20 MILLION CONTRACT WITH GOLDMAN SACHS TO BENEFIT THE FIRM AT TAXPAYER EXPENSE THE OFFICIALS SAID THE INQUIRY WAS ORIGINALLY INITIATED BY THE RTC'S ETHICS OFFICE AND DIDN'T INCLUDE AN EXAMINATION OF THE CONTRACT MODIFICATION GOLDMAN SACHS SERVED AS CHIEF FINANCIAL ADVISER TO THE RTC IN THE SEIZURE AND SALE OF HOMEFED WHICH COLLAPSED MORE THAN A YEAR AGO AT A COST TO TAXPAYERS OF PERHAPS 2 BILLION WHILE CONFIRMING THE INQUIRY OFFICIALS DECLINED TO MAKE PUBLIC THE JULY 23 LETTER TO THE INSPECTOR GENERAL OUTLINING ADMINISTRATION CONCERNS THE ADMINISTRATION HAS MOVED AGGRESSIVELY TO TIGHTEN CONTROL OVER RTC CONTRAONTEND MILLIONS OF DOLLARS HAVE BEEN WASTED BECAUSE OF LAX OVERSIGHT OF THE FIRMS HIRED TO ASSIST THE RTC IN CLOSING FAILED SAVINGS AND LOANS AND POINT TO HOMEFED AS A PRIME EXAMPLE THE ACCOUNTING FIRM OF PRICE WATERHOUSE WHICH ALSO ASSISTED THE RTC ON HOMEFED IS UNDER INVESTIGATION BY THE INSPECTOR GENERAL FOR POSSIBLE BILLING IRREGULARITIES IN FEBRUARY AFTER IT WAS DISCLOSED THAT PRICE WATERHOUSE CHARGED 67 CENTS A PAGE FOR PHOTOCOPYING THE FIRM AGREED TO REIMBURSE 4 MILLION TO THE RTC AND MAY SOON GIVE BACK MORE THE CONTRACT MODIFICATION FOR GOLDMAN SACHS IS DEFENDED BY RTC OFFICIALS BUT SOME ADMINISTRATION OFFICIALS WORRY IT MAY HAVE UNFAIRLY BENEFITED THE FIRM THE CHANGE WAS AGREED TO IN SEPTEMBER 1992 AFTER RTC OFFICIALS DECIDED TO PUT HOMEFED INTO CONSERVATORSHIP RATHER THAN MARKET THE THRIFT UNDER THE SOCALLED ACCELERATED RESOLUTION PROGRAM UNDER THIS PROGRAM THE AGENCY TRIES TO LINE UP BUYERS FOR AN INSOLVENT THRIFT BEFORE TAKING IT OVER THE PROGRAM IS DESIGNED TO PRESERVE FRANCHISE VALUE AND AVOID LOSSES THE SHIFT IN PLANS RAISED THE PROSPECT GOLDMAN WOULDN'T RECEIVE ALL OF THE FEES ENVISIONED UNDER ITS ORIGINAL CONTRACT AT GOLDMAN'S URGING THE CONTRACT WAS MODIFIED TO ENSURE THE FIRM WOULDN'T LOSE ANY FEES WE HAD A CONTRACTUAL OBLIGATION TO PAY THOSE FOLKS SAID LAMAR KELLY AN RTC SENIOR VICE PRESIDENT GOLDMAN HAD DONE SUBSTANTIAL WORK ON THAT PORTFOLIO OUT THERE IT'S NOT LIKE THEY WERE GETTING A WINDFALL OUT OF THIS DEAL STILL THE CONTRACT MODIFICATION OPENED THE DOOR FOR GOLDMAN TO SERVE IN THE POTENTIALLY CONFLICTING CAPACITY AS BOTH A FINANCIAL ADVISER AND UNDERWRITER OF SECURITIES SOLD AGAINST HOMEFED ASSETS UNDER RTC ETHICS RULES GOLDMAN WAS SUPPOSED TO OBTAIN A WAIVER BEFORE UNDERTAKING BOTH ROLES AT THE SAME INSTITUTION BUT THE FIRM FAILED TO DO SO FOR A TRANSACTION IN DECEMBER 1992 INVOLVING 1 BILLION IN HOMEFED RESIDENTIAL LOANS ACCORDING TO THE RTC OFFICE OF ETHICS ON THAT TRANSACTION GOLDMAN EARNED 29 MILLION GASTON L GIANNI JR AN ASSOCIATE DIRECTOR OF THE GENERAL ACCOUNTING OFFICE THE INVESTIGATIVE ARM OF CONGRESS SAID THE CIRCUMSTANCES SURROUNDING THE TRANSACTION PROBABLY AREN'T UNIQUE THAT'S THE WAY IT WORKS SAID MR GIANNI SUGGESTING THE AGENCY ITSELF IS OPEN TO CRITICISM THE RTC'S PROCESS WAS NOT THERE TO ENSURE THAT WHAT WAS REQUIRED TO OCCUR DID OCCUR 9310110160 931011 BUSINESS BRIEF MARRIOTT SAYS SPLIT INTO TWO CONCERNS JUST COMPLETED WILL BE BOON TO BOTH WASHINGTON MARRIOTT CORP'S SPLIT INTO A GROWTHORIENTED HOTEL AND SERVICESMANAGEMENT COMPANY AND A DEBTHEAVY REALESTATE AND TRAVELCONCESSIONS COMPANY WILL ALLOW BOTH NEW COMPANIES TO CAPITALIZE ON SIGNS OF LIFE IN THE HOTEL AND REALESTATE MARKETS CHAIRMAN JW MARRIOTT JR SAID THE SPLIT WAS COMPLETED FRIDAY MARRIOTT CORP HAS ISSUED A SPECIAL DIVIDEND OF ONE SHARE OF STOCK IN MARRIOTT INTERNATIONAL INC THE NEW MANAGEMENT COMPANY FOR EACH MARRIOTT CORP SHARE HELD MARRIOTT CORP WHICH HAS BEEN RECHRISTENED HOST MARRIOTT CORP OWNS HOTELS AND RETIREMENT COMMUNITIES AND OPERATES AIRPORT AND TOLLROAD CONCESSIONS WE'RE POSITIONED TODAY TO ACQUIRE PROPERTIES WE COULDN'T EVEN HAVE CONSIDERED A YEAR AGO MR MARRIOTT SAID OF RENEWED MARKET INTEREST IN HOTELASSET TRANSACTIONS ALSO MARRIOTT INTERNATIONAL JUST COMPLETED A 1 BILLION BANK LINE OF CREDIT VIA A SYNDICATE LED BY CITIBANK MR MARRIOTT SAID GIVING THE NEW COMPANY MORE FINANCIAL MUSCLE THAT ISN'T TO SAY HE EXPECTS THE FULLSERVICE LODGING BUSINESS TO COME ROARING BACK HE SAID NOTING THAT WHILE OCCUPANCY RATES CONTINUE TO RISE ROOM RATES STILL ARE STALLED WHILE THE US HOTEL MARKET REMAINS SLOW MR MARRIOTT SAID THE COMPANY IS SCOUTING ASIA EUROPE AND LATIN AMERICA FOR NEW BUSINESS HE ALSO FORESEES GROWTH IN THE LIMITEDSERVICE AND ALLSUITE LODGING SEGMENTS THERE'S REALLY VERY LITTLE QUALITY IN THE MODERATE TO ECONOMY TIER MR MARRIOTT SAID ADDING THAT THE COMPANY PLANS TO SPREAD ITS FAIRFIELD INN AND RESIDENCE INN BRANDS PARTICULARLY THROUGH FRANCHISING FOR HOST MARRIOTT MR MARRIOTT SAID CHANGING MARKET ATTITUDES TOWARD REAL ESTATE AND REAL ESTATE INVESTMENT TRUSTS SHOULD BE A BOON I THINK THE REIT MARKET IS GOOD THOUGH SOME OF THE REIT YIELDS ARE PRETTY DARN LOW HE SAID MOST OF HOST'S REAL ESTATE IS YIELDING BETTER THAN 10 AND A LOT OF REITS ARE AROUND 7 IF WE DECIDE TO DO THAT IN THE FUTURE I THINK WE'D BE IN SUBSTANTIAL DEMAND MARRIOTT HAS SETTLED MOST OF THE BONDHOLDER LITIGATION SPARKED BY THE SPLITUP PLAN BUT A SUIT CHARGING MARRIOTT SHOULD HAVE DISCLOSED THE PLAN BEFORE SELLING TWO LARGE BOND ISSUES IS OUTSTANDING 9310110159 931011 COMAIR BOARDINGS IN SEPTEMBER CINCINNATI COMAIR HOLDINGS INC SAID 225408 PASSENGERS IN SEPTEMBER BOARDED ITS REGIONAL AIRLINE COMAIR UP 11 FROM A YEAREARLIER 203844 PASSENGERS FOR THE MONTH REVENUE PASSENGER MILES INCREASED 21 TO 57 MILLION FROM A YEAREARLIER 47 MILLION A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER CARRIED ONE MILE 9310110158 931011 SUN HUNG KAI FIRSTHALF NET HONG KONG SUN HUNG KAI & CO POSTED A 17 DECLINE IN NET INCOME FOR THE FIRST HALF PROFIT FELL TO 1677 MILLION HONG KONG DOLLARS US217 MILLION FROM HK2012 MILLION REVENUE ALSO FELL 17 TO HK3852 MILLION FROM HK4636 MILLION THE COMPANY DEALS IN BULLION FOREIGN EXCHANGE COMMODITIES AND SECURITIES 9310110157 931011 TECHNOLOGY LATTICE QUICKLOGIC END TALKS HILLSBORO ORE LATTICE SEMICONDUCTOR CORP AND QUICKLOGIC CORP A CLOSELY HELD SEMICONDUCTOR MAKER BASED IN SAN JOSE CALIF HAVE ENDED MERGER DISCUSSIONS IN A STATEMENT LATE FRIDAY THE TWO COMPANIES SAID THEY TERMINATED NEGOTIATIONS BECAUSE THEY CONCLUDED THE MERGER WAS NOT IN THE BEST INTERESTS OF OUR TWO COMPANIES THEY DIDN'T ELABORATE 9310110156 931011 SALEM SPORTSWEAR HOLDS TALKS HUDSON NH SALEM SPORTSWEAR CORP SAID IT IS IN DISCUSSIONS WITH A PARTY THAT MAY POSSIBLY ACQUIRE THE SPORTS APPAREL MAKER SALEM SAID IT CAN GIVE NO ASSURANCE THAN ANY AGREEMENT WILL BE REACHED OR ANY TRANSACTION COMPLETED THE COMPANY SAID IT MADE THE ANNOUNCEMENT IN RESPONSE TO UNUSUAL TRADING ACTIVITY IN ITS COMMON STOCK IN NATIONAL OVERTHECOUNTER TRADING FRIDAY SALEM CLIMBED 175 OR 23 TO 925 9310110154 931011 NUWEST INDUSTRIES SAYS IT WILL PROPOSE RECAPITALIZATION PLAN ENGLEWOOD COLO NUWEST INDUSTRIES INC SAID IT WILL PROPOSE A RECAPITALIZATION OF ITS DEBT AFTER FAILING TO MAKE A 582000 INTEREST PAYMENT DUE OCT 1 ON ITS UNSECURED SUBORDINATED DEBT THE FERTILIZER MAKER WHICH WARNED IN MAY THAT IT MIGHT HAVE TO SEEK BANKRUPTCYLAW PROTECTION SAID SENIOR LENDERS ALSO EXTENDED THE DUE DATES ON OTHER DEBT PAYMENTS THAT ARE IN ARREARS THE COMPANY SAID INTEREST AND PRINCIPAL PAYMENTS TOTALING 65 MILLION WERE EXTENDED TO OCT 22 FROM OCT 1 WHILE PAYMENT OF THE BALANCE OUTSTANDING ON A 20 MILLION WORKING CAPITAL LINE WAS EXTENDED TO OCT 31 FROM SEPT 30 NUWEST SAID ITS RECAPITALIZATION PLAN WHICH WILL BE PROPOSED TO SHAREHOLDERS AT A SPECIAL MEETING OCT 20 INCLUDES REFINANCING OR EXCHANGING SUBSTANTIALLY ALL OF ITS EXISTING DEBT ESTIMATED AT 536 MILLION PLUS THE BALANCE OF THE WORKING CAPITAL LINE THE PLAN WOULD ALSO INCLUDE SELLING 35 MILLION OF SUBORDINATED NOTES WITH MOST OF THE PROCEEDS TO BE USED FOR AN EQUIPMENT LEASE FINANCE AND CAPITAL IMPROVEMENTS THE COMPANY ALSO SAID IT COMPLETED TALKS WITH CERTAIN DEBTHOLDERS TO SWAP 101 MILLION OF SENIOR SECURED SUBORDINATED DEBT FOR A LIKE AMOUNT OF UNSECURED SUBORDINATED NOTES ON WHICH INTEREST WILL BE DEFERRED AFTER THE PLAN IS COMPLETED NUWEST SAID IT WILL ISSUE WARRANTS TO BUY 58 OF ITS FULLY DILUTED COMMON STOCK ABOUT 52 MILLION SHARES AFTER THE RECAPITALIZATION TO HOLDERS OF SUBORDINATED NOTES AND SENIOR LENDERS NUWEST SAID IT EXPECTS TO COMPLETE TALKS WITH A MAJOR FINANCIAL INSTITUTION IDENTIFIED IN A RECENT PROXY STATEMENT AS BANQUE INDOSUEZ FOR 40 MILLION OF SENIOR TERM LOANS AND A 20 MILLION REVOLVING WORKING CAPITAL CREDIT LINE THE COMPANY ALSO SAID IT RECEIVED A COMMITMENT LETTER FROM THE EQUIPMENT FINANCE DIVISION OF CATERPILLAR INC FOR THE LEASE FINANCING OF 13 MILLION OF MINING EQUIPMENT 9310110153 931011 LETTERS TO THE EDITOR KILLINGS THREATEN HAITIAN ACCORD YOUR AUG 9 WASHINGTON INSIGHT COLUMN OIL EMBARGO REMAINS IN EFFECT IN HAITI DISCUSSED LACK OF PROGRESS IN HAITI'S PARLIAMENT ON THE RATIFICATION OF A PRIME MINISTER THE GOVERNORS ISLAND ACCORD SIGNED BY HAITI'S FIRST DEMOCRATICALLY ELECTED PRESIDENT JEAN BERTRAND ARISTIDE AND THE MILITARY LEADER WHO HEADED THE COUP GEN RAOUL CEDRAS IS DESIGNED TO RESTORE PRESIDENT ARISTIDE TO OFFICE BY OCT 30 THE UNITED NATIONS AND ORGANIZATION OF AMERICAN STATES CIVILIAN MISSION CHARGED WITH MONITORING HUMAN RIGHTS RELEASED A REPORT THE SAME WEEK AS YOUR ARTICLE STATING THAT THERE HAS BEEN AN ALARMING INCREASE IN POLITICAL KILLINGS SINCE GEN CEDRAS AGREED TO THE ACCORD THE REPORT STATED THAT ARBITRARY EXECUTIONS AND SUSPICIOUS DEATHS HAD JUMPED TO AN ALARMING 36 IN THE CAPITAL ALONE SINCE THE SIGNING OF THE ACCORD THE REPORT IMPLICATES THE MILITARY AND POLICE IN THE KILLING WHICH WERE DIRECTED AGAINST MEMBERS OF POPULAR ORGANIZATIONS THE UN ALSO CONFIRMED THAT THE ARMY CONTINUES TO PREVENT THE CIVILIAN MISSION FROM TRAVELING OUTSIDE OF THE CAPITAL BERNARD DUPITON A PROMILITARY SENATOR WHO HAD AGREED TO STEP DOWN FROM THE POST OF PRESIDENT TO MAKE WAY FOR THE IMPLEMENTATION OF THE ACCORDS AND ELECTION OF A NEW SENATE PRESIDENT WAS SHOT SEVERAL OTHERS RECEIVED DEATH THREATS AFTER AGREEING TO SUPPORT THE RESTORATION OF PRESIDENT ARISTIDE THE INTERNATIONAL COMMUNITY HOLDS THE KEY TO THE SUCCESS OF HAITIAN DEMOCRACY NUMEROUS HUMANRIGHTS ABUSES UNDER THE ACCORD ARE GROUNDS FOR THE REIMPOSITION OF SANCTIONS AGAINST THE MILITARY REGIME IT WAS THE OIL EMBARGO THAT BROUGHT THE MILITARY TO THE TABLE IN THE FIRST PLACE THE RECENT UN REPORT ON HUMAN RIGHTS ONLY UNDERSCORES THE CRITICAL NEED TO MAINTAIN SANCTIONS OR REIMPOSE THEM IMMEDIATELY SHOULD WE MAKE THE ERROR OF LIFTING THEM 9310110152 931011 MINING FANS SEEK TO RESCUE INDUSTRY FROM HISTORY'S PITS HALL OF FAME HONORS LEGENDS EVEN THE GUY WHO USED GOLD NUGGET AS A DOORSTOP BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL LEADVILLE COLO KUO CHING LI HAS FOUND A HOME HERE THE CHINESEBORN TUNGSTEN KING SHARES IT WITH EDWARD WILSON DAVIS THE FATHER OF TACONITE AND HARRY T THORSON THE FATHER OF BENTONITE THEY ARE ALL DEAD HAVE BEEN FOR MANY YEARS BUT LIKE 107 OTHERS THEY LIVE ON IN THE HEARTS OF RIGHTMINDED MINERS EVERYWHERE FOR LEADVILLE IS THE HEADQUARTERS OF THE NATIONAL MINING HALL OF FAME COOPERSTOWN IT AIN'T MOST OF THE INDUCTEES IT IS SAFE TO SAY ARE NOWHERE NEAR AS WELLKNOWN AS JOLTIN' JOE DIMAGGIO BUT WHEN IT COMES TO ROCKBUSTING THEY ARE ALL BIG LEAGUERS THERE IS PADDY MARTINEZ THE NAVAJO MEDICINE MAN WHO DISCOVERED URANIUM IN NEW MEXICO WHEN HE WAS INDUCTED LAST YEAR THE GOVERNORS OF NEW MEXICO AND ARIZONA NAMED A DAY AFTER HIM AND JAMES WILSON MARSHALL WHOSE DISCOVERY LAUNCHED THE GREAT CALIFORNIA GOLD RUSH REMEMBER HIM NO THAT MIGHT BE BECAUSE HE ENDED UP DESTITUTE AFTER HE SET HIS SIGHTS MUCH LOWER IN THE MINERAL WORLD AND BEGAN PANNING FOR TIN EVEN THOUGH THE HALL HASN'T ALWAYS BEEN PICKY ABOUT INDUCTEES THE ONLY REAL REQUIREMENT IS THAT ONE MUST HAVE BEEN DEAD FOR AT LEAST FIVE YEARS YOU WOULD BE WRONG TO THINK IT IS EASY TO GET IN AT ITS LAST INDUCTION CEREMONY ON SEPT 19 IN SAN FRANCISCO THE EIGHT HONOREES WERE THE SURVIVORS OF SOME FIERCE POLITICKING A TOTAL OF 66 OTHERS WERE NOMINATED BUT FAILED TO MAKE THE CUT STEPHEN BIRCH AN ALASKAN COPPER KING MADE IT THANKS TO NOMINATOR EARL BEISTLINE A RETIRED DEAN AT THE UNIVERSITY OF ALASKA IN FAIRBANKS AND SOMETHING OF A FANATIC ON OLD MINERS MR BEISTLINE FILLED A BOX THE SIZE OF AN ORANGE CRATE WITH NEWS CLIPPINGS PHOTOS AND ANYTHING ELSE YOU WOULD WANT TO KNOW ABOUT MR BIRCH RUSHING THEM IN FOR CONSIDERATION THAT IS THE KIND OF FERVOR THE HALL INSPIRES MR BEISTLINE HAS BEEN TRYING TO GET MINING ENGINEER BENJAMIN D STEWART INDUCTED SO FAR WITH NO LUCK EVERY YEAR HE CALLS AND SAYS DO WE HAVE A CHANCE ON STEWART' SAYS CHARLES MORRIS CHAIRMAN OF THE HALL'S NOMINATIONS MR MORRIS AND NINE OTHERS WHO MAKE THE FINAL SELECTIONS HAVE NOTHING AGAINST MR STEWART BUT SAY THEY HAVE SO MANY OTHER NOMINEES TO CONSIDER FOR HIS PART MR BEISTLINE SAYS YOU JUST KEEP TRYING I CAN'T LET IT GET ME MAD LAUNCHED IN 1987 TO MEMORIALIZE THE GREATEST NAMES IN MINING AND MINING PROMOTION THE HALL OF FAME AIMS TO PUT A BETTER FACE ON ONE OF AMERICA'S MOST COLORFUL AND MUCH MALIGNED INDUSTRIES WHOSE HISTORY INCLUDES MORE THAN ITS SHARE OF ROBBER BARONS CROOKED PROMOTERS ENVIRONMENTAL VILLAINS AND FRUITCAKES AT FIRST THE HALL HAD TO MAKE UP ITS OWN NOMINATIONS NOW ENTHUSIASTS FIGHT TO GET THEIR FAVORITE MINER ENGINEER OR PROMOTER IN BESIDES PROSPECTORS AND MINERS A HALL BROCHURE SAYS IT WILL CONSIDER JOURNALISTS RASCALS AND OTHERS PRIOR INDUCTEES INCLUDE CHARLES HENRY DOW THE DOW IN DOW JONES & CO WHOSE REPORTING HELPED FUEL THE 1879 COLORADO SILVER BOOM AND GEORGE HEARST FOUNDER OF THE HEARST PUBLISHING EMPIRE WHO WAS A MINER BEFORE HE WAS A JOURNALIST AND STRUCK IT FABULOUSLY RICH ON THE COMSTOCK LODE THERE IS ALSO CONRAD REED WHOSE FIND OF A 17POUND GOLD NUGGET IN 1799 AT THE AGE OF 12 TRIGGERED AMERICA'S FIRST GOLD RUSH WHEN OPPORTUNITY KNOCKED MR REED SADLY FAILED TO ANSWER HIS FAMILY USED THE NUGGET AS A DOORSTOP UNTIL THEY SOLD IT FOR 350 ITS ESTIMATED VALUE AT THE TIME 3600 MANY OF THE INDUCTEES ARE AS OBSCURE TO THE REST OF THE WORLD AS MR REED PEOPLE LIKE MR LI WHO DEVELOPED THE FIRST TUNGSTEN MINES IN CHINA BEFORE DOING THE SAME IN THE US MR DAVIS THE UNIVERSITY OF MINNESOTA PROFESSOR WHO BECAME KNOWN AS MR TACONITE FOR HIS WORK WITH THE LOWGRADE IRON ORE AND MR THORSON A NORTH DAKOTA FARM BOY WHO MADE A NAME FOR HIMSELF WITH BENTONITE A TYPE OF CLAY THAT CAN ABSORB LARGE QUANTITIES OF WATER THE FINAL RESTING PLACE FOR THE HALL OF FAMERS IS AN OLD THREESTORY BRICK SCHOOLHOUSE IN THIS HISTORIC ROCKY MOUNTAINS MINING TOWN THE PLAQUES HANG WHERE LOCKERS USED TO BE IN A MUSEUM DOWNSTAIRS CLASSROOMS HAVE BEEN CONVERTED INTO A REPLICA UNDERGROUND MINE SO CLAUSTROPHOBICALLY AUTHENTIC THAT SOME VISITORS HESITATE TO ENTER ABOUT 20000 PEOPLE PAID AS MUCH AS 3 EACH TO MEANDER THROUGH THE BUILDING LAST YEAR TO SEE WEATHERED ARTIFACTS SUCH AS CANDLESTICKS AND HAT LAMPS AND A DIORAMIC DISPLAY SHOWING TWO BEWHISKERED MINERS DANCING WITH JOY AFTER DISCOVERING GOLD AT CRIPPLE CREEK COLO IN 1859 THE HALL TECHNICALLY WAS CREATED IN 1977 BUT HAD NO INDUCTIONS NO PERMANENT FACILITY AND ONLY ABOUT 300 WHEN RICHARD T MOOLICK TOOK OVER AS CHAIRMAN IN 1985 MR MOOLICK FORMER PRESIDENT OF PHELPS DODGE CORP THE BIG COPPER PRODUCER GOT THE DIRECTORS TO LOOK FOR A HOME AND GOT POWERFUL FRIENDS TO DONATE FUNDS THE DIRECTORS LOOKED AT SUCH MINING CENTERS AS LEAD SD BUTTE MONT GOLDEN COLO AND LEADVILLE LEADVILLE WON OUT AFTER CITY LEADERS HAD A FIVEHOUR CHAT WITH MR MOOLICK A VETERAN OF NOTORIOUSLY TOUGH LABOR NEGOTIATIONS ALONE IN THE TALKS AGAINST A TEAM OF SCHOOL OFFICIALS WHO WANTED TO SELL THE SCHOOLHOUSE FOR 2 MILLION MR MOOLICK EMERGED WITH A RENTAL LEASE OF 50 CENTS A YEAR IN PERPETUITY COUNTY OFFICIALS AGREED TO PAY 50000 PER YEAR IN UTILITIES FOR THE FIRST TWO YEARS THE CITY OF LEADVILLE EVEN AGREED TO CUT THE GRASS THEY BEGAN TO RECOGNIZE THAT TO HAVE A PRESTIGIOUS OUTFIT LIKE OURS IN LEADVILLE WOULD BE BENEFICIAL MR MOOLICK SAYS THE FACILITY PERCHED ON A HILL AGAINST A WONDROUS BACKDROP OF SNOWCAPPED PEAKS HAS CUT A FEW CORNERS IN ITS BID FOR GREATNESS WHEN CONRAD REED WAS TO BE INDUCTED THREE YEARS AGO FOR INSTANCE MR MOOLICK COULDN'T FIND A PHOTO OR EVEN A RENDERING OF THE YOUTH TO AFFIX ON A PLAQUE MR REED INCONVENIENTLY DIED IN 1834 BEFORE PHOTOGRAPHY WAS INVENTED UNDETERRED THE RESOURCEFUL MR MOOLICK USED A BOYHOOD PHOTO OF HIS OWN BROTHER WE COULDN'T JUST LEAVE IT BLANK HE EXPLAINS ADDING HASTILY THAT'S THE ONLY ONE WE CHEATED ON WHEN HISTORIANS INEVITABLY QUESTIONED THE PHOTOGRAPH'S AUTHENTICITY MR MOOLICK HAD A READY ANSWER WE SAID WE FOUND AN OIL PAINTING AND TOOK A PICTURE OF IT 9310110151 931011 LETTERS TO THE EDITOR THE CAT'S MEOW WITH REFERENCE TO MARIE WINN'S SEPT 23 LEISURE & ARTS ESSAY IT'S A HUMAN'S LIFE DOGS SAY THIS FROM SIR FRANCIS BACON'S THE ADVANCEMENT OF LEARNING WHO TAUGHT THE RAVEN IN A DROUGHT TO THROW PEBBLES INTO A HOLLOW TREE WHERE SHE ESPIED WATER THAT THE WATER MIGHT RISE SO AS SHE COULD COME TO IT IT WOULD BE GREAT IF MS WINN'S DOGS AND BIRDS COULD STOP AROUND SOME DAY AND TEACH MY CAT HOW TO LET HERSELF INTO AND OUT OF THE HOUSE 9310110150 931011 TREASURY PLANS TO SELL 1575 BILLION BILL ISSUE WASHINGTON THE TREASURY PLANS TO RAISE 148 BILLION IN NEW CASH WITH THE SALE THURSDAY OF ABOUT 1575 BILLION OF 52WEEK BILLS TO REDEEM 1428 BILLION IN MATURING BILLS THE MINIMUM DENOMINATION IS 10000 THE BILLS WILL BE DATED OCT 21 AND WILL MATURE OCT 20 1994 NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EDT THURSDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM THE CUSIP NUMBER FOR THE BILLS IS 912794L85 9310110149 931011 SOUTHERN CALIFORNIA GAS SETS UP PLANT TO BUILD NATURAL GASFUELED VEHICLES BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES SOUTHERN CALIFORNIA GAS CO SEEKING TO BECOME A MAJOR PLAYER IN THE EMERGING MARKET FOR ALTERNATIVEFUEL VEHICLES IS SETTING UP AN INNERCITY PLANT HERE TO BUILD NATURAL GASFUELED VANS AND TRUCKS SLATED TO BEGIN PRODUCTION IN THREE MONTHS AND TURN OUT A TOTAL OF 17000 VEHICLES BY THE END OF 1996 FOR USE BY FLEETS THE FACILITY IN EAST LOS ANGELES WILL BE THE FIRST PLANT IN THE COUNTRY DESIGNED TO CONVERT EXISTING VEHICLES TO NATURAL GAS AS WELL AS INSTALL GASBURNING EQUIPMENT ON A BROAD RANGE OF MODELS STRAIGHT OFF THE SHOWROOM FLOOR EXPECTED TO BE ANNOUNCED TODAY THE PROJECT IS MORE SIGNIFICANT FOR SOUTHERN CALIFORNIA GAS AND COULD HAVE A BROADER IMPACT ON BOTH THE UTILITY AND AUTO INDUSTRIES THAN ITS RELATIVELY MODEST 10 MILLION PRICE TAG SUGGESTS AS THE NATION'S LARGEST NATURALGAS DISTRIBUTION FIRM THE COMPANY'S MOVE IS BOUND TO BE WATCHED CLOSELY BY UTILITIES IN OTHER PARTS OF THE COUNTRY WEIGHING POTENTIAL INVESTMENTS IN NEW BUSINESSES AND IT WILL BE ONE OF THE MOST AMBITIOUS EFFORTS YET TO SHOW SKEPTICAL AUTO MAKERS THAT A SUBSTANTIAL MARKET ALREADY EXISTS FOR GASBURNING VEHICLES SOUTHERN CALIFORNIA GAS IS A UNIT OF PACIFIC ENTERPRISES WHICH 15 YEARS AGO FAILED TO GET A SIMILAR PROJECT RELYING ON COMPRESSED GASFUELED VEHICLES OFF THE GROUND THIS TIME THE UTILITY BELIEVES THAT ENGINEERING ADVANCES AND MORE FAVORABLE PUBLIC ATTITUDES TOWARD CLEANCAR TECHNOLOGIES WILL HELP THE PROJECT SUCCEED IT'S AN AGGRESSIVE STEP TOWARD THE GOAL OF CONVINCING DETROIT AND THE REST OF THE BUSINESS COMMUNITY THAT YOU CAN SELL AND SERVICE NATURALGAS VEHICLES IN LARGE NUMBERS ACCORDING TO WARREN MITCHELL PRESIDENT OF SOUTHERN CALIFORNIA GAS BY THE LATE 1990S MR MITCHELL PREDICTS THERE WILL BE 10 TIMES MORE NATURAL GASBURNING VEHICLES OPERATING ON SOUTHERN CALIFORNIA'S ROADS ALONE THAN THE TOTAL NUMBER OF SUCH VEHICLES CURRENTLY IN USE NATIONWIDE BY 1996 FEDERAL AND STATE CLEANAIR REGULATIONS WILL REQUIRE MANY TRUCK AND VAN FLEETS IN THE LOS ANGELES AREA TO CONVERT TO USING CLEANERBURNING ALTERNATIVE FUELS THE PLANT IS PART OF A BRIDGING STRATEGY BY THE LOS ANGELESBASED UTILITY TO GAIN MANUFACTURING EXPERIENCE AND CONDUCT RESEARCH TO PREPARE FOR THAT PROSPECT MR MITCHELL SAID IN AN INTERVIEW FRIDAY THE COMPANY'S DECISION ALSO SIGNALS ITS RENEWED WILLINGNESS TO RISK DIVERSIFICATION DESPITE THE UTILITY INDUSTRY'S GENERALLY MISERABLE TRACK RECORD OF EXPANDING INTO NEW LINES OF BUSINESS AND THE PLANT WILL PROVIDE DESPERATELY NEEDED JOBS AND A PERHAPS A SPARK OF HOPE FOR RESIDENTS OF ONE OF LOS ANGELES' POOREST NEIGHBORHOODS AS PART OF ITS OVERALL PLAN THE UTILITY INTENDS TO INCREASE BY FIVEFOLD THE NUMBER OF REFUELING STATIONS AVAILABLE TO SERVE GASFUELED VEHICLES OPERATING IN SOUTHERN CALIFORNIA OVER THE NEXT THREE YEARS THE COSTS OF THE VEHICLEASSEMBLY PROJECT ALONG WITH WHATEVER PROFITS IT PRODUCES WILL BE SHARED EQUALLY BY THE COMPANY AND ITS RATEPAYERS UNDER A UNIQUE ACCOUNTING SYSTEM APPROVED BY THE CALIFORNIA PUBLIC UTILITIES COMMISSION RESIDENTIAL GAS CUSTOMERS FOR INSTANCE STAND TO BENEFIT FROM LOWER MONTHLY BILLS IN TWO WAYS INCREASED SALES OF NATURAL GAS TO FLEET OPERATORS WILL HELP SPREAD THE UTILITY'S FIXED COSTS ACROSS A WIDER BASE AND PROFITS FROM THE ENTERPRISE ALSO ARE INTENDED TO LOWER THE OVERHEAD OF MAINTAINING THE DISTRIBUTION SYSTEM THE PROJECT INVOLVES THREE OTHER PARTNERS PAS INC TROY MICH NGV SYSTEMS INC AUSTIN TEXAS AND 4E TECHNOLOGIES INC A LOS ANGELES CONSULTING AND MARKETING FIRM GENERAL MOTORS CORP DEALERS WILL PROVIDE THE VEHICLES AND THEY ALSO WILL PROVIDE A WARRANTY AND SERVICE FACILITIES TO SERVE THE NEEDS OF FLEET CUSTOMERS CONVERTING A GASOLINEPOWERED VEHICLE WILL COST BETWEEN 2500 AND 4000 WHILE INSTALLING NATURALGAS TANKS A NEW FUELINJECTION SYSTEM AND OTHER EQUIPMENT ON A NEW MODEL IS EXPECTED TO COST AS MUCH AS 7500 FOR EACH VEHICLE 9310110148 931011 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BENTON OIL & GAS CO AN OFFERING OF SEVEN MILLION COMMON SHARES VIA SALOMON BROTHERS INC OHM CORP AN OFFERING OF 34 MILLION COMMON SHARES VIA LEHMAN BROTHERS AND ALEX BROWN & SONS INC REGIS CORP AN OFFERING OF TWO MILLION COMMON SHARES VIA OPPENHEIMER & CO AND FURMAN SELZ INC US AUTO RECEIVABLES CO A SPECIAL PURPOSE UNIT OF CHRYSLER CORP AN OFFERING OF 500 MILLION OF AUTO LOAN ASSETBACKED CERTIFICATES VIA BEAR STEARNS & CO 9310110147 931011 MARKETING BRIEF NOTED MAGAZINES WASHINGTON POST CO'S NEWSWEEK RUSHED INTO PRINT A SPECIAL ISSUE ON JUSTRETIRED BASKETBALL STAR MICHAEL JORDAN WHICH WAS SCHEDULED TO APPEAR ON NEWSSTANDS LAST NIGHT IT SAID THE MAGAZINE WAS PRODUCED IN FOUR DAYS SEPARATELY FROM THE REGULAR WEEKLY ISSUE AND MARKED THE FIRST TIME THE COMPANY COMPLETED TWO MAGAZINES OVER THE SAME WEEKEND MAJOR ADVERTISERS FOR THE ISSUE WERE MCDONALD'S CORP AMWAY CORP AND GATORADE 9310110146 931011 GERMANY CONSUMER PRICES RISE WIESBADEN GERMANY THE FINAL SEPTEMBER RISE IN WESTERN GERMAN CONSUMER PRICES WAS LEFT UNREVISED FROM THE PRELIMINARY RESULT OF AN INCREASE OF 01 ON THE MONTH AND 4 ON THE YEAR THE FEDERAL STATISTICS OFFICE SAID THE FINAL CALCULATION CONFIRMED THE PRELIMINARY FIGURE BASED ON INFLATION DATA FROM THE FOUR LARGEST OF WESTERN GERMANY'S 11 STATES IN AUGUST CONSUMER PRICES WERE UNCHANGED ON THE MONTH AND UP 42 ON THE YEAR 9310110145 931011 FINANCING BUSINESS AMYLIN PHARMACEUTICALS INC AMYLIN PHARMACEUTICALS INC SAN DIEGO SAID IT SOLD TWO MILLION COMMON SHARES IN A PUBLIC OFFERING AT 11 APIECE THROUGH LEAD UNDERWRITER MORGAN STANLEY & CO THE OFFERING INCREASES THE BIOTECHNOLOGY CONCERN'S TOTAL SHARES OUTSTANDING TO 194 MILLION 9310110144 931011 ABREAST OF THE MARKET INSIDERS SNAP UP BRANDNAME STOCKS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BRAND NAMES ARE BACK OR AT LEAST THAT'S WHAT A LOT OF CORPORATE INSIDERS THINK IF THEY'RE RIGHT SOME ANALYSTS SAY THEIR BUYING COULD START A TREND THAT COULD HELP SHORE UP LAGGING STOCK INDEXES EVEN AS INVESTORS HAVE BEEN SHEDDING BRANDNAME COMPANY STOCKS FROM THEIR INVESTMENT PORTFOLIOS EXECUTIVES AT COMPANIES RANGING FROM JM SMUCKER TO KELLOGG HAVE BEEN SNAPPING UP SHARES IN THEIR BELEAGUERED COMPANIES TO ANALYSTS WHO TRACK INSIDER TRANSACTIONS THE BUYING IS NOTEWORTHY BECAUSE IT IS OCCURRING AT A FEVERISH PACE AND AT A BROAD SPECTRUM OF COMPANIES A GUY CAN BUY A COUPLE OF HUNDRED SHARES TO SHOW SOME GOOD FAITH BUT WHEN A GUY BUYS A COUPLE OF THOUSAND SHARES OF A 50 STOCK THAT GOES BEYOND THE GOOD FAITH REQUIREMENTS SAYS BOB GABELE PRESIDENT OF CDA/INVESTNET A FORT LAUDERDALE FLA COMPANY THAT TRACKS INSIDER BUYING AND SELLING MR GABELE NOTES FOR INSTANCE THAT PAUL SMUCKER CHIEF EXECUTIVE OFFICER OF JM SMUCKER BOUGHT 8400 SHARES OF THE COMPANY STOCK AT 2375 ON AUG 24 HIS PURCHASE FOLLOWS A MAMMOTH STOCK PURCHASE BY ANTHONY JF O'REILLY CHAIRMAN OF HJ HEINZ CO WHO IN JUNE PLUNKED DOWN 25 MILLION TO BUY 68000 SHARES OF THE PITTSBURGH COMPANY OUTSIDE DIRECTORS ARE ALSO GETTING INTO THE GAME AT JOHNSON & JOHNSON THOMAS MURPHY AN OUTSIDE DIRECTOR BOUGHT 9500 SHARES AT 37 EACH ON AUG 16 AND AT CPC INTERNATIONAL THREE OUTSIDE DIRECTORS HAVE PURCHASED A TOTAL OF 4000 SHARES SINCE LATE JUNE WHY THE RUSH BY INSIDERS TO BUY UNLIKE INVESTORS ON WALL STREET CORPORATE EXECUTIVES AT BRANDNAME COMPANIES FEEL THAT THEIR STOCKS HAVE BEEN THE TARGET OF AN UNFAIR SMEAR CAMPAIGN THIS YEAR AND NOW THEY'RE FIGHTING BACK BY PUTTING THEIR MONEY WHERE THEIR MOUTH IS I BELIEVE THERE'S BEEN AN OVERREACTION GENERALLY WITH REGARD TO FOOD STOCKS THERE'S BEEN AN OVERREACTION TO BRAND NAMES AND PARTICULARLY AN OVERREACTION TO GERBER PRODUCTS SAYS TIM CROASDAILE THE COMPANY'S VICE PRESIDENT OF INVESTOR RELATIONS SINCE GERBER STOCK FELL SHARPLY LAST DECEMBER MR CROASDAILE HAS BOUGHT MORE THAN 2000 SHARES HE NOTES THAT GERBER'S STOCK HAS BEEN HURT BY WALL STREET'S BRANDNAME BASHING EVEN THOUGH THERE ARE NO PRIVATELABEL COMPANIES THAT COMPETE WITH THE COMPANY'S BABY FOOD ANALYSTS COUNTER THAT GERBER'S NEMESIS HASN'T BEEN PRIVATE LABELS BUT STEPPEDUP PRICE COMPETITION FROM HEINZ AND RALSTON PURINA'S BEECHNUT UNIT OTHER CORPORATE EXECUTIVES VOICE SIMILAR SENTIMENTS WE DO FEEL AS WITH ALL FOOD COMPANIES AND OTHER BRANDED COMPANIES THAT WE HAVE BEEN PUNISHED AND WE DO BELIEVE OUR STOCK IS A GOOD BUY GIVEN THE PROSPECTS WE HAVE SAYS KONRAD SCHLATTER CHIEF FINANCIAL OFFICER AT CPC INTERNATIONAL MR SCHLATTER ARGUES THAT CPC HAS WRESTLED WITH THE PRIVATELABEL PHENOMENOM IN EUROPE FOR YEARS SO IT DOESN'T EXPECT TO HAVE ANY TROUBLE DEALING WITH THE TREND IN THE US MEANWHILE ANALYSTS SUCH AS MR GABELE OF CDA THINK THERE ARE OTHER COMPELLING FACTORS BEHIND THE INSIDER BUYING TUCKED INTO THE RECENT TAX LEGISLATION IS A NEW RULE THAT COULD SPUR SOME BIGNAME COMPANIES TO RESTRUCTURE BY SELLING UNWANTED ASSETS THE NEW RULES GIVE CORPORATE BUYERS IMPROVED TAX TREATMENT WHEN THEY BUY THE ASSETS AS OPPOSED TO THE STOCK OF A COMPANY FOR MORE THAN BOOK VALUE THUS COMPANIES SHOWING A LOT OF GOODWILL WHICH IS ANY ADVANTAGE INCLUDING A HIGHLY REGARDED BRAND NAME LIKELY WILL FIND A WIDER POOL OF BUYERS IF THEY DECIDE TO SELL CERTAIN ASSETS THIS TYPE OF INSIDER BUYING MAY BE MORE INDICATIVE OF EXPECTED RESTRUCTURINGS AMONG BRANDNAME COMPANIES SAYS MR GABELE THOUGH MANY INDUSTRY ANALYSTS ARE SKEPTICAL THAT THE PRESSURE ON BRANDNAMES STOCKS IS OVER SOME STOCK STRATEGISTS SEE THE INSIDER BUYING AS ENCOURAGING BOTH FOR THE INDIVIDUAL STOCKS AND THE MARKET AS A WHOLE I THINK IT'S A SIGN THAT WE WON'T SEE A WATERSHED CORRECTION IN THE STOCK MARKET SAYS MR GABELE LIKE EVERYONE ELSE WE ARE NERVOUS ABOUT THE STOCK MARKET BUT THIS IS ONE BRIGHT SPOT STOCK STRATEGIST JOSEPH MCALINDEN AT DILLON READ SAYS INSIDERS HAVE A PRETTY WELLDOCUMENTED TENDENCY TO BUY LOW AND SELL HIGH BUT HE CAUTIONS THEIR TIMING IS NOT THAT GREAT MR MCALINDEN NOTES THAT CORPORATE EXECUTIVES AT BANKS STARTED BUYING SHARES OF THEIR FLAGGING COMPANIES IN EARLY 1990 EVEN AS INVESTORS WERE CONTINUING TO HAMMER AWAY AT THE GROUP THOUGH INSIDERS INCURRED LOSSES ON THEIR PURCHASES INITIALLY THEY TURNED OUT TO BE BIG WINNERS IN THE LONG RUN AS BANK STOCKS EMBARKED SOON AFTER ON A RALLY THAT IN SOME CASES LED TO A TRIPLING AND EVEN QUADRUPLING OF PRICES THIS TIME MR MCALINDEN SAYS THE SPATE OF INSIDER BUYING AT BRANDED COMPANIES IS OCCURRING AT AN INTERESTING JUNCTURE WHILE INSIDERS IN AGGREGATE ARE INCREASING THEIR SELLING YOU ARE SEEING THIS SHIFT TOWARD NET BUYING IN BRANDED STOCKS SAYS MR MCALINDEN THOUGH MR MCALINDEN THINKS STOCKS IN GENERAL COULD BE VULNERABLE TO A CORRECTION OF 15 TO 20 IN THE COMING MONTHS HE SAYS THE INSIDER BUYING IN BRANDNAME STOCKS MAY MEAN THAT SOME STOCK MARKET INDEXES WILL FARE BETTER THAN OTHERS FOR INSTANCE THE STANDARD & POOR'S 500STOCK INDEX WHICH HAS BEEN DRAGGED DOWN ALL YEAR BY SELLING IN BRANDNAME AND CONSUMER STOCKS COULD ACTUALLY WEATHER THE STORM WITH LESS DAMAGE THAN THE DOW JONES INDUSTRIAL AVERAGE AND NASDAQ COMPOSITE INDEX BUT NOT ALL ANALYSTS ARE SO SANGUINE DAVID SHULMAN STOCK STRATEGIST AT SALOMON BROTHERS SAYS THAT WHILE INSIDER BUYING IS A PROMISING SIGN HE EXPECTS PROFIT MARGINS AT BRANDED COMPANIES TO CONTINUE TO BE UNDER PRESSURE WHAT'S MORE HE THINKS THAT BRANDNAME COMPANIES MANY OF WHICH ARE MULTINATIONAL CONCERNS COULD BE HURT BY A SLIGHTLY STRONGER DOLLAR WHICH WILL EAT INTO OVERSEAS PROFITS I THINK IT'S ENCOURAGING WHEN YOU SEE INSIDERS BUYING BUT THEY MAY BE EARLY VERY EARLY SAYS MR SHULMAN HE WARNS THAT THE RESTRUCTURING AMONG INDUSTRIAL GIANTS TOOK 12 YEARS TO COMPLETE SO FAR THE BRANDNAME SHAKEOUT IS ONLY IN ITS SECOND YEAR MEANWHILE OTHER ANALYSTS WHO COVER BRANDNAME PRODUCTS WONDER WHETHER INSIDERS ARE JUST WISTFULLY TRYING TO RECREATE THE PAST RATHER THAN TAKING A HARD LOOK AT THE FUTURE I WOULDN'T SAY THE INSIDERS ARE ALWAYS RIGHT SAYS WILLIAM LEACH A FOOD AND BEVERAGE ANALYST AT DONALDSON LUFKIN & JENRETTE SECURITIES YOU HAVE HAD A CHANGE IN THE INDUSTRY ENVIRONMENT AND SOME OF THE INDUSTRY EXECUTIVES MAY JUST BE REMEMBERING THE GOOD OLD DAYS WHILE MR LEACH AGREES THAT MOST OF THE STOCKS HE COVERS ARE SOMEWHAT CHEAP HE WARNS THAT INVESTORS BETTING ON A BIG POP WILL LIKELY BE DISAPPOINTED IT'S NOT LIKE THE BANK STOCKS WHERE YOU SAW A CITICORP TRIPLING OR QUADRUPLING SAYS MR LEACH EVER SINCE MR O'REILLY PICKED UP HIS 68000 SHARES OF HEINZ AT AN AVERAGE PRICE OF 3663 EACH THE STOCK HAS ACTUALLY DETERIORATED SLIGHTLY FINISHING AT 36125 FRIDAY UP 375 CENTS THOUGH FEW ANALYSTS ARE WILLING TO VENTURE THAT THE INSIDER BUYING IS A HARBINGER OF HEADY STOCK PRICE GAINS SOME THINK IT MAY BE A SIGN THAT BRANDNAME STOCKS HAVE HIT BOTTOM JOHN MCMILLIN A FOOD ANALYST AT PRUDENTIAL SECURITIES IS HEARTENED TO FIND THAT THE STEPPEDUP INSIDER PURCHASES HAVE BEEN COUPLED WITH INCREASED STOCK BUYBACKS FOR MANY CONSUMER COMPANIES WHICH PAY FAT DIVIDENDS IT MAKES SENSE TO REPURCHASE STOCK BECAUSE THE AFTERTAX BORROWING COST IS OFTEN CHEAPER THAN THE DIVIDEND PAYMENTS BOTH THESE TRENDS ARE GLIMMERS OF LIGHT AMID THE GLOOM SAYS MR MCMILLIN BUT EVEN THOUGH MR MCMILLIN HAS STARTED NIBBLING AT SOME SELECT BRANDNAME STOCKS HE ISN'T READY TO CHOMP AT THEM FURIOUSLY STOCKS EKED OUT SLIM GAINS AS INTEREST RATES CAME TUMBLING DOWN THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 111 POINTS TO 358474 IN MODERATE TRADING STANDARD & POOR'S 500STOCK INDEX ROSE 113 TO 46031 AND THE NASDAQ COMPOSITE INDEX GAINED 178 TO 76427 CLOSING JUST SHY OF A RECORD ADVANCING ISSUES OUTNUMBERED DECLINERS 1109 TO 850 VOLUME ON THE BIG BOARD FELL TO 243250000 SHARES FROM 254770000 SHARES THURSDAY STOCKS SHOT HIGHER IN EARLY TRADING ON OPTIMISM ABOUT FALLING INTEREST RATES THE YIELD ON THE TREASURY'S 30YEAR BOND DROPPED TO 592 AFTER THE LABOR DEPARTMENT REPORTED THAT NONFARM PAYROLLS JUMPED BY 156000 LAST MONTH GREATER THAN THE 144000 INCREASE THAT ECONOMISTS EXPECTED BUT MANUFACTURING SECTOR EMPLOYMENT FELL BY A SOMEWHAT LARGER THAN EXPECTED 18000 THE EMPLOYMENT DATA CALMED BOND INVESTORS' FEARS THAT THE ECONOMY MAY BE ACCELERATING BUT BY MIDDAY THE EUPHORIA IN THE STOCK MARKET STARTED WANING AS A WAVE OF COMPUTERGUIDED PROGRAM SELLING KNOCKED PRICES LOWER AMERICAN EXPRESS'S 625 EXCHANGEABLE NOTE ISSUE WAS THE MOST ACTIVE ON THE BIG BOARD FRIDAY CLOSING UP 1/8 TO 36 7/8 THE NOTES PRICED THURSDAY AT 3675 EACH ARE EXCHANGEABLE AT MATURITY EITHER INTO THE COMMON STOCK OF FIRST DATA OR INTO CASH AT AMERICAN EXPRESS'S OPTION FIRST DATA IS PARTLY OWNED BY AMERICAN EXPRESS CR BARD SLUMPED 1 3/4 TO 23 THE COMPANY SAID IT MAY HAVE TO PAY A SUBSTANTIAL FINE IN CONNECTION WITH A SETTLEMENT OF A PROBE INTO ITS ANGIOPLASTY OPERATIONS LUKENS PLUNGED 4 1/8 TO 33 1/8 PRUDENTIAL SECURITIES ANALYST CLARENCE MORRISON DOWNGRADED THE STOCK TO HOLD FROM BUY AMDAHL LOST 7/8 TO 5 THE TECHNOLOGY COMPANY SAID THAT IT EXPECTS TO REPORT A LOSS FROM OPERATIONS IN THE THIRD QUARTER THAT IS WIDER THAN THE 21 CENTS A SHARE LOSS IT HAD IN ITS SECOND QUARTER FEDERATED DEPARTMENT STORES ADDED 1/2 TO 18 5/8 BEAR STEARNS INITIATED COVERAGE OF THE COMPANY WITH A BUY RECOMMENDATION 9310110143 931011 CORPORATE FOCUS KKR MAY BE STRIPPED OF CONTROL OF WALTER INDUSTRIES BUT LEON BLACK PLAN COULD HELP BUYOUT FIRM AVOID ASBESTOS LITIGATION BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL HENRY KRAVIS AND HIS LEVERAGED BUYOUT FIRM APPEAR TO BE ABOUT TO LOSE CONTROL OF WALTER INDUSTRIES A HOME BUILDER THAT HAS BEEN MIRED IN BANKRUPTCYCOURT PROCEEDINGS FOR NEARLY FOUR YEARS APOLLO ADVISORS RUN BY FINANCIER LEON BLACK IS OUT TO UNSEAT KOHLBERG KRAVIS ROBERTS & CO WHICH OWNS THE FLORIDABASED BUILDER APOLLO'S CAMPAIGN SIGNALS AN IMPENDING END TO A NAGGING PROBLEM FOR KKR THE BUYOUT FIRM'S LOSING BET THAT IT COULD DODGE THE ASBESTOS LITIGATION THAT DOGGED WALTER BEFORE KKR LED A 24 BILLION BUYOUT OF THE HOME BUILDER IN 1987 APOLLO HAS BEEN QUIETLY CIRCULATING A PROPOSAL AMONG WALTER CREDITORS TO STRIP KKR OF MUCH OF ITS OWNERSHIP THE PLAN ALSO COULD SET IN MOTION A SETTLEMENT WITH PLAINTIFFS IN A BIG CASE OF ASBESTOSLIABILITY LITIGATION BEFORE A DEC 13 TRIAL DATE AT ISSUE IN THE BANKRUPTCYCOURT TRIAL IS WHETHER WALTER AND KKR CAN BE HELD LIABLE FOR AS MUCH AS 2 BILLION IN CLAIMS FOR HARM CAUSED BY A FORMER SUBSIDIARY OF THE HOME BUILDER LIKE TWO PROPOSALS THAT KKR PREVIOUSLY FILED IN THE FEDERAL BANKRUPTCY COURT IN TAMPA FLA APOLLO'S PLAN PROVIDES FOR SENIOR CREDITORS TO BE REPAID IN FULL BUT APOLLO CONTEMPLATES DISTRIBUTING CASH AND STOCK IT VALUES AT 143 BILLION RATHER THAN NEW DEBT AS KKR HAS PUT FORWARD TO HOLDERS OF PUBLIC UNSECURED DEBT WITH CLAIMS OF 155 BILLION APOLLO'S PLAN WOULD ALLOW WALTER TO OPERATE AS IF IT WERE OUT OF BANKRUPTCY COURT JURISDICTION WHILE STAYING UNDER THE COURT'S JURISDICTION FOR THE ASBESTOS TRIAL A SOP TO KKR WHICH FEARS PERSONAL LIABILITY IF THE CASE WERE TO RETURN TO TEXAS UNDER APOLLO'S PLAN IT AND LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS CO WOULD BECOME THE LARGEST SHAREHOLDERS OF A REORGANIZED WALTER INDUSTRIES AND THE BIGGEST PRESENCE ON THE COMPANY'S NEW BOARD OF DIRECTORS THE NEW BOARD COULD NEGOTIATE MORE READILY WITH ASBESTOS CLAIMANTS SINCE ANY SETTLEMENT COMES OUT OF KKR THE EQUITY HOLDER FIRST IN FACT SAYS FRED BARRON OF BARRON & BUDD THE DALLASBASED LAW FIRM LEADING THE ASBESTOS PLAINTIFFS DISCUSSIONS ARE CERTAINLY ONGOING WITH LAWYERS FOR APOLLO IT'S VERY ENCOURAGING HE SAYS MOST CREDITORS TOO ARE LIKELY TO JUMP AT THE PLAN THAT'S BECAUSE MOST AREN'T THE ORIGINAL DEBTHOLDERS BUT SOCALLED VULTURE INVESTORS WHO SWOOPED DOWN TO PICK OFF THE HAPLESS BONDHOLDERS WHEN PRICES SANK IN THE WAKE OF THE DECEMBER 1989 BANKRUPTCY FILING LEHMAN PAID AS LITTLE AS 20 CENTS ON THE DOLLAR FOR BONDS NOW TRADING BETWEEN 70 CENTS AND 80 CENTS APOLLO'S POSITION IS VALUED AT MORE THAN TWICE THE MARKET VALUE WHEN MUCH OF IT WAS ACQUIRED AS PART OF EXECUTIVE LIFE INSURANCE CO OF CALIFORNIA'S JUNKBOND PORTFOLIO THERE'S BEEN AN ENORMOUS AMOUNT OF MONEY MADE BY VULTURE INVESTORS SAYS WILLIAM JACOBS A HIGH YIELD ANALYST AT CS FIRST BOSTON BUT OF COURSE THE ONLY WAY TO REALIZE THAT GAIN IS TO SETTLE IN A REASONABLE TIME APOLLO'S PLAN CARRIES WEIGHT BECAUSE OF SEVERAL UNUSUAL ASPECTS OF WALTER INDUSTRIES' BANKRUPTCYCOURT PROCEEDINGS UNLIKE MOST REORGANIZATIONS THE WALTER CREDITORS COMMITTEE HAS LITTLE INFLUENCE ON ANY REORGANIZATION PLAN THAT'S BECAUSE ITS MEMBERS WHICH INCLUDE REPRESENTATIVES FROM GENERAL ELECTRIC PENSION TRUST AND AIRLIE GROUP LIMITED PARTNERSHIP HOLD ONLY ABOUT ONETENTH OF THE DEBT OUTSTANDING NEITHER LEHMAN BROTHERS WHICH STARTED ACCUMULATING ITS 300 MILLION FACE AMOUNT STAKE IN 1990 NOR APOLLO WHICH ACQUIRED MOST OF ITS 175 MILLION HOLDING IN MARCH 1992 SIT ON THE COMMITTEE BUT TOGETHER THEY CONTROL NEARLY TWOTHIRDS OF THE POSTBUYOUT DEBT THAT'S WHY BOTH LARGE BONDHOLDERS HAVE BEEN INSTRUMENTAL IN SHAPING THE PROPOSAL THE TERMS WERE NEGOTIATED BY APOLLO'S MARK ROWAN WHO WORKED AS A BANKER ON THE ORIGINAL DEAL WHILE AT DREXEL BURNHAM LAMBERT AND BY KKR'S MICHAEL TOKARZ WHO STRUCTURED KKR'S BUYOUT ACCORDING TO SEVERAL PARTICIPANTS IN THE TALKS BANKERS FAMILIAR WITH THE TALKS SAY BOTH MR KRAVIS AND MR BLACK HAVE SAT IN ON MEETINGS DURING RECENT MONTHS THOUGH NEITHER FIRM WOULD COMMENT PUBLICLY ON THE PROPOSAL TALKS BEGAN IN EARNEST IN AUGUST WHEN BANKRUPTCY JUDGE ALEXANDER PASKAY ENDED THE HOME BUILDER'S EXCLUSIVE RIGHT TO PUT FORTH A PLAN OF REORGANIZATION THAT OPENED THE FIELD FOR CREDITORS TO PROPOSE PLANS TO COMPETE WITH KKR WHICH HOPES TO RETAIN 30 OF ITS OWNERSHIP APOLLO PROPOSES TO PLACATE KKR WITH ABOUT A 15 STAKE TO ENTICE THE FIRM TO ABANDON ITS PLAN FILED ON SEPT 21 BUT IF KKR BALKS AT THE TERMS APOLLO CAN THREATEN A CRAMDOWN A PROCEDURE THAT ALLOWS A REORGANIZATION PLAN TO BE CONFIRMED BY THE BANKRUPTCY COURT OVER THE OBJECTIONS OF DISSENTING JUNIORSECURITIES HOLDERS IF THE PLAN MEETS TESTS OF FAIRNESS DESCRIBED IN THE FEDERAL BANKRUPTCY CODE THAT MIGHT LEAVE KKR WITH AN EVEN SMALLER STAKE KEY TO THE DISTRIBUTION OF THE NEW SHARES IS THE VALUE PLACED ON WALTER WHICH HAS PROSPERED IN SPITE OF THE BANKRUPTCY PROCEEDING APOLLO CLAIMS WALTER IS WORTH 24 BILLION AFTER PAYING OFF SENIOR CREDITORS THAT WOULDN'T LEAVE ENOUGH TO MAKE UNSECURED BONDHOLDERS SUCH AS LEHMAN AND APOLLO WHOLE SO THEY WOULD BE ENTITLED TO VIRTUALLY ALL OF WALTER'S EQUITY IN FACT ACCORDING TO MAX HOLMES HIGHYIELD STRATEGIST AT SALOMON BROTHERS WALTER COULD BE WORTH AS MUCH AS 28 BILLION THAT MEANS THE NEW STOCK IS WORTH MORE THAN 12 A SHARE INSTEAD OF 8 AS APOLLO VALUES IT WHICH WOULD GIVE APOLLO LEHMAN AND OTHER UNSECURED CREDITORS A RECOVERY WORTH EVEN MORE THAN THEIR ALLOWED CLAIMS 9310110142 931011 WHO'S NEWS RPM INC RPM INC MEDINA OHIO FRANK C SULLIVAN 32 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THIS MAKER OF INDUSTRIAL COATINGS AND SEALANTS MR SULLIVAN FORMERLY VICE PRESIDENT OF CORPORATE DEVELOPMENT SUCCEEDS JAMES A KARMAN WHO CONTINUES AS PRESIDENT OF THE COMPANY 9310110141 931011 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT THREE AND SIXMONTH BILLS AFFINITY GROUP INC 120 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES BOYD GAMING CORP EIGHT MILLION SHARES VIA SALOMON BROTHERS INC DECKERS FOOTWEAR CORP INITIAL 25 MILLION SHARES VIA PAINEWEBBER INC AND KIDDER PEABODY & CO DEVELOPERS DIVERSIFIED REALTY CORP 35 MILLION SHARES VIA DEAN WITTER REYNOLDS INC ENSYS ENVIRONMENTAL PRODUCTS INC INITIAL 18 MILLION SHARES VIA ALEX BROWN & SONS AND FIRST ANALYSIS SECURITIES CORP EQUITABLE OF IOWA COS 33 MILLION SHARES VIA SALOMON BROTHERS AND DAIN BOSWORTH INC FRIEDMAN'S INC INITIAL 33 MILLION OF CLASS A SHARES VIA KIDDER PEABODY HARRIS CHEMICALS 200 MILLION OF EIGHTYEAR SENIOR SECURED NOTES AND 335 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA GOLDMAN SACHS & CO HEALTH CARE REIT INC 25 MILLION SHARES VIA ALEX BROWN HERZFELD CARIBBEAN BASIN FUND INITIAL TWO MILLION SHARES VIA THOMAS HERZFELD & CO INSIGNIA FINANCIAL GROUP INC INITIAL 39 MILLION OF CLASS A COMMON SHARES VIA LEHMAN BROTHERS INTEGRATED DEVICE TECHNOLOGY THREE MILLION SHARES VIA MONTGOMERY SECURITIES IWERKS ENTERTAINMENT INC INITIAL 24 MILLION SHARES VIA ROBERTSON STEPHENS & CO LANDMARK GRAPHICS TWO MILLION SHARES VIA ALEX BROWN AND WESSELS ARNOLD & HENDERSON LODGENET ENTERTAINMENT CORP INITIAL 35 MILLION SHARES VIA OPPENHEIMER & CO NL INDUSTRIES 100 MILLION OF 12YEAR SENIOR DISCOUNT NOTES VIA SALOMON BROTHERS NAVISTAR INTERNATIONAL CORP 22 MILLION SHARES VIA CS FIRST BOSTON OASIS RESIDENTIAL INC INITIAL 73 MILLION SHARES VIA KIDDER PEABODY OM GROUP INITIAL 11 MILLION SHARES VIA LEHMAN BROTHERS PRESIDENT RIVERBOAT CASINOS INC 45 MILLION SHARES VIA MONTGOMERY R&B INC TWO MILLION SHARES VIA WILLIAM BLAIR ULTIMATE ELECTRONICS INC INITIAL TWO MILLION SHARES VIA PIPER JAFFRAY INC VIRGINIA ELECTRIC & POWER CO 200 MILLION OF 30YEAR FIRST MORTGAGE BONDS VIA COMPETITIVE BID LOS ANGELES DEPARTMENT OF WATER AND POWER 125 MILLION OF 1993 ELECTRIC PLANT REVENUE BONDS SECOND ISSUE VIA COMPETITIVE BID BALTIMORE COUNTY MD 155 MILLION OF SERIES 1993 REFUNDING BONDS VIA COMPETITIVE BID PENNSYLVANIA 400 MILLION OF 199394 TAX ANTICIPATION NOTES FIRST SERIES VIA COMPETITIVE BID UNIVERSITY OF CALIFORNIA 1782 MILLION OF SERIES B REFUNDING REVENUE BONDS FOR MULTIPLEPURPOSE PROJECTS VIA COMPETITIVE BID CALIFORNIA 2468 MILLION VARIOUSPURPOSE GENERAL OBLIGATION REFUNDING BONDS VIA COMPETITIVE BID NEW YORK CITY 650 MILLION OF FISCAL 1994 SERIES A TAXANTICIPATION NOTES VIA COMPETITIVE BID ATLANTA GA 270 MILLION OF WATER AND SEWER REVENUE BONDS VIA A MERRILL LYNCH & CO GROUP CHELSEA MASS 100 MILLION OF STATE LEASE REVENUE BONDS VIA A LEHMAN BROTHERS GROUP CONNECTICUT HEALTH AND EDUCATION FACILITIES AUTHORITY 108 MILLION OF REVENUE BONDS VIA A SMITH BARNEY SHEARSON GROUP FAIRFAX COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY VA 1177 MILLION OF BONDS VIA MERRILL LYNCH GUAM POWER AUTHORITY 100 MILLION OF SERIES 1993A REVENUE BONDS VIA A MORGAN STANLEY & CO GROUP LOUISIANA PUBLIC FACILITIES AUTHORITY 130 MILLION OF REVENUE BONDS VIA A SMITH BARNEY SHEARSON GROUP MASSACHUSETTS HOUSING FINANCE AGENCY 1045 MILLION OF SINGLEFAMILY MORTGAGE REVENUE BONDS VIA A PAINEWEBBER GROUP OHIO BUILDING AUTHORITY 215 MILLION OF WORKERS COMPENSATION FACILITIES REVENUE REFUNDING BONDS VIA A SMITH BARNEY SHEARSON GROUP SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT ARIZ 600 MILLION OF ELECTRIC SYSTEM REVENUE REFUNDING BONDS VIA A BEAR STEARNS & CO GROUP VALDEZ ALASKA 150 MILLION OF MARINE TERMINAL REVENUE BONDS VIA A GOLDMAN SACHS GROUP WISCONSIN 210 MILLION OF GENERAL OBLIGATION REFUNDING BONDS VIA A BEAR STEARNS GROUP 9310110140 931011 INTERNATIONAL QUEBEC'S INDEPENDENCE ADVOCATES SET FOR GAINS IN NATIONAL ELECTIONS BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL THE BLOC QUEBECOIS A PARTY THAT ADVOCATES INDEPENDENCE FOR QUEBEC IS POISED TO SWEEP MOST OF THE FRENCHSPEAKING PROVINCE'S 75 SEATS IN CANADA'S NATIONAL ELECTIONS OCT 25 THE BLOC'S RISE APPEARS TO HAVE DOOMED ANY CHANCE FOR THE RULING CONSERVATIVE PARTY TO STAY IN POWER THE OPPOSITION LIBERAL PARTY LED BY JEAN CHRETIEN A FORMER CABINET MINISTER UNDER PIERRE TRUDEAU HAS EMERGED AS THE HEAVY FAVORITE TO FORM THE NEXT GOVERNMENT AND COULD WIN AN OUTRIGHT MAJORITY OF THE 295 SEATS IN THE HOUSE ANALYSTS SAY BUT THE BLOC'S SURGE IN QUEBEC AND STRONG GAINS IN WESTERN CANADA BY THE REFORM PARTY A FLEDGLING CONSERVATIVE GROUP POINT TO A FRAGMENTED BICKERING PARLIAMENT THIS ELECTION WILL BRING UNPRECEDENTED CLARITY TO CANADA'S POLITICAL FAULT LINES PREDICTS JEANFRANCOIS LISEE A QUEBEC POLITICAL JOURNALIST POLITICIANS IN CANADA'S ESTABLISHED PARTIES NEED A SHOCK AND THEY'RE GOING TO GET IT ACROSS THE COUNTRY SAYS CARMAND NORMAND PRESIDENT OF A MONTREAL MONEYMANAGEMENT FIRM AND A BLOC SUPPORTER TO MOST VOTERS THE BLOC'S IMAGE IS THAT OF ITS LEADER LUCIEN BOUCHARD A HOTBLOODED ORATOR THE 54YEAROLD MR BOUCHARD QUIT THE CONSERVATIVE CABINET OF FORMER PRIME MINISTER BRIAN MULRONEY THREE YEARS AGO PROTESTING THE TERMS OF A CONSTITUTIONAL PROPOSAL AIMED AT KEEPING QUEBEC IN CANADA MR BOUCHARD IS A LAWYER FROM QUEBEC'S LAC SAINTJEAN REGION AN ENCLAVE OF MILL WORKERS FARMERS AND LOGGERS WITH AN INDEPENDENCE STREAK SO DEEP THAT THERE HAS BEEN OCCASIONAL TALK OF SETTING UP A MININATION THERE IF THE REST OF QUEBEC CLINGS TO CANADA MR BOUCHARD AND A HALFDOZEN OTHER DISGRUNTLED PARLIAMENT MEMBERS FORMED THE BLOC IN 1990 THE PARTY IS FIELDING CANDIDATES ONLY IN QUEBEC BUT RECENT SURVEYS INDICATE THE BLOC COULD EVEN WIND UP AS THE BIGGEST OPPOSITION PARTY WITH MORE SEATS THAN THE CONSERVATIVES AFTER THE ELECTION CRITICS OF THE BLOC SAY IT HAS NO BUSINESS IN A PARLIAMENT IT AIMS TO DISCREDIT IN A FRENCHLANGUAGE DEBATE PRIME MINISTER KIM CAMPBELL ACCUSED MR BOUCHARD OF BREAKING WITH THE HONEST APPROACH OF FORMER QUEBEC SOVEREIGNTY CHAMPIONS THIS IS THE FIRST TIME SEPARATISTS HAVE SPONSORED CANDIDATES IN A FEDERAL ELECTION PREVIOUSLY THEY HAD ONLY DONE SO IN PROVINCIAL ELECTIONS WHILE MR BOUCHARD PROMISES TO DEFEND QUEBEC'S INTERESTS IN OTTAWA RESPONSIBLY MS CAMPBELL CHARGED THAT HE WILL BE MORE CONCERNED WITH FURTHERING HIS SEPARATIST AGENDA HER ARGUMENT ISN'T LIKELY TO SWAY MANY BLOC SUPPORTERS CONSIDER ROBERT TREMBLAY WHO RUNS A CONVENIENCE STORE ON THE FIRST FLOOR OF HIS TWOSTORY HOUSE IN MONTREAL'S WORKINGCLASS EAST END THE 55YEAROLD MR TREMBLAY WHO GREW UP AROUND LAC SAINTJEAN BELIEVES THE BLOC WILL PREPARE THE REST OF CANADA FOR A CIVILIZED DIVORCE REPEATED FAILURES BY VARIOUS PRIME MINISTERS TO SATISFY QUEBEC'S DESIRE FOR GREATER AUTONOMY HAVE SHOWN THAT WE CAN'T AGREE MR TREMBLAY SAYS MR NORMAND THE MONEY MANAGER FAVORS A FORMULA TO GIVE QUEBEC POLITICAL SOVEREIGNTY WITHIN A CANADIAN ECONOMIC PARTNERSHIP A NOTION MR BOUCHARD HAS ADVOCATED BOTH ENGLISH AND FRENCH CANADA WILL BE BETTER OFF IF EACH HAS SWAY OVER ITS CULTURAL AFFAIRS MR NORMAND ARGUES YOU CAN HAVE YOUR ENGLISH MUFFIN FOR BREAKFAST HE TELLS AN ENGLISHSPEAKER I CAN HAVE MY FRENCH CROISSANT AND WE CAN HAVE LUNCH AND DO DEALS TOGETHER NOT ALL BLOC SUPPORTERS ARE SEPARATISTS SOME ARE SIMPLY FED UP WITH THE OLD PARTIES AND WANT CHANGE QUEBECOIS IN THE 1970S ELECTED THE SEPARATIST PARTI QUEBECOIS TO POWER IN QUEBEC CITY BUT LATER VOTED DOWN ITS REFERENDUM PROPOSAL ON SOVEREIGNTY NOW THE PARTI QUEBECOIS IS LENDING ITS GRASSROOTS ORGANIZATION TO THE BLOC HOPING THE FEDERAL ELECTION WILL MARK A FIRST STEP TOWARD ANOTHER SOVEREIGNTY VOTE THE NEXT STEP WOULD BE A PARTI QUEBECOIS VICTORY IN PROVINCIAL ELECTIONS SET FOR NEXT YEAR FOLLOWED BY A PLEBISCITE AS EARLY AS 1995 ONLY THEN WOULD QUEBEC'S THIRST FOR INDEPENDENCE TRULY BE TESTED THE BLOC'S SUPPORT RATING IN THE PROVINCE HAS HOVERED AROUND 40 FOR THREE YEARS ROUGHLY THE SUPPORT RATE FOR SOVEREIGNTY AND CONSISTENTLY THE HIGHEST RATING FOR ANY PARTY IN SURVEYS CONDUCTED BY CROP INC A MONTREAL POLLING FIRM THE BLOC'S RATING ROSE TO 45 IN THE FIRM'S LATEST POLL CONDUCTED SEPT 1722 THE SURGE HAS DEFIED PUNDITS' PREDICTIONS THAT QUEBEC VOTERS WOULD ABANDON THE SEPARATIST GROUP IN FAVOR OF THE PARTY BEST POSITIONED TO FORM THE GOVERNMENT AND DISH OUT FAVORS A BLOC SWEEP OF FRENCHSPEAKING QUEBEC WOULD DEVASTATE THE CONSERVATIVES' POWER BASE OF THE CONSERVATIVES' 152 SEATS IN THE LAST HOUSE OF COMMONS 54 WERE FROM QUEBEC THE LIBERALS MAY TAKE 15 TO 20 QUEBEC DISTRICTS WITH BIG ENGLISHSPEAKING POPULATIONS BUT THE BLOC LOOKS SET TO TAKE NEARLY ALL THE REST SAYS CLAUDE GAUTHIER RESEARCH DIRECTOR FOR CROP THE RISE OF THE BLOC IN QUEBEC AND THE REFORM PARTY IN WESTERN CANADA IS CLEARLY SYMBIOTIC SAYS TOM FLANAGAN A UNIVERSITY OF CALGARY PROFESSOR AND FORMER REFORM PARTY ADVISER THE BLOC'S SHOWING IS SENDING A MESSAGE TO WESTERN CANADIANS THAT THEIR INTERESTS WILL BE SERVED BY ELECTING REPRESENTATIVES FROM A PARTY BASED IN THEIR REGION THE SPECTACLE OF SEPARATIST POLITICIANS PEPPERING GOVERNMENT OFFICIALS WITH QUEBEC'S DEMANDS ON THE FLOOR OF PARLIAMENT ISN'T LIKELY TO SIT WELL IN OTHER PROVINCES ONE SENIOR LIBERAL LEADER CALLS MR BOUCHARD'S CURRENT HANDFUL OF BLOC PARLIAMENT MEMBERS OBSTRUCTIONIST BUFFOONS EVEN SOME BLOC SUPPORTERS ADMIT PRIVATELY THAT MANY OF ITS CANDIDATES AREN'T QUEBEC'S BEST AND BRIGHTEST BUT MR CHRETIEN THE LIKELY NEXT PRIME MINISTER IS HIGHLY UNPOPULAR IN HIS HOME PROVINCE OF QUEBEC MR GAUTHIER THE MONTREAL POLLSTER SAYS FRICTION BETWEEN MR CHRETIEN AND MR BOUCHARD COULD RAISE NATIONALIST FEVER IN QUEBEC POSSIBLY SWAYING THE CRUCIAL 38 OR SO OF VOTERS WHO WANT MORE POWERS FOR THEIR PROVINCE YET FAVOR SOVEREIGNTY PROPOSALS ONLY IN MOMENTS OF PASSION IF NOTHING ELSE A BIG BLOC VICTORY WILL PROVIDE LOGISTICAL AMMUNITION TO THE SEPARATISTS EACH HOUSE OF COMMONS MEMBER GETS 171700 CANADIAN DOLLARS US128568 TO FUND AN OFFICE AND STAFF IN OTTAWA AND HIS HOME DISTRICT OTHER CONSIDERATIONS A C64800 SALARY FREE MAILING PRIVILEGES 64 ROUNDTRIP FLIGHTS A YEAR ANYWHERE IN CANADA AND A TAXFREE EXPENSE ALLOWANCE OF C21400 9310110138 931011 ECONOMY BIG RETAIL CHAINS ARE SPEAKING OUT IN OPPOSITION TO CLINTON HEALTH PLAN BY HILARY STOUT AND CHRISTINA DUFF STAFF REPORTERS OF THE WALL STREET JOURNAL OF THE TOP CORPORATE EXECUTIVES FINDING FAULT WITH THE CLINTON HEALTH PLAN DURING TWO DAYS OF MEETINGS MEALS AND GOLF IN WILLIAMSBURG VA KMART CORP'S JOSEPH ANTONINI APPEARED THE MOST ANXIOUS WE'RE GOING TO END UP SPENDING SEVERAL HUNDRED MILLION MORE 300 MILLION IF THE PRESIDENT'S PROPOSAL REQUIRING EMPLOYERS TO PAY PART OF THE HEALTH INSURANCE PREMIUMS FOR PARTTIME AS WELL AS FULLTIME WORKERS GOES INTO EFFECT MR ANTONINI SAID GIVING THE COMPANY'S LATEST ESTIMATE THAT'S BECAUSE THE STANDARD PACKAGE OF HEALTH BENEFITS IN THE WHITE HOUSE PROPOSAL IS MORE GENEROUS THAN THE COVERAGE KMART OFFERS ITS FULLTIME EMPLOYEES AND EVEN MORE IMPORTANTLY BECAUSE KMART DOESN'T PROVIDE ANY HEALTH BENEFITS FOR PARTTIME EMPLOYEES SOME 40 OF ITS WORK FORCE I'M NOT AGAINST HEALTHCARE COVERAGE BUT IT HAS TO BE DONE INTELLIGENTLY SO IT DOESN'T KILL CORPORATE AMERICA MR ANTONINI KMART'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID BETWEEN SESSIONS AT THE SEMIANNUAL MEETING OF THE BUSINESS COUNCIL IN THIS RESTORED 18THCENTURY VILLAGE THE NATION'S BIG RETAILING CHAINS ARE EMERGING AS SOME OF THE MOST VOCAL OPPONENTS OF PRESIDENT CLINTON'S STRATEGY TO GUARANTEE HEALTH COVERAGE TO ALL AMERICANS AND TO CONTROL COSTS A NUMBER OF LARGE MANUFACTURERS SUCH AS THE BIG THREE AUTO MAKERS WHO ALREADY PROVIDE GENEROUS WORKER HEALTH BENEFITS HAVE GENERALLY WELCOMED THE PRESIDENT'S PLAN EAGER FOR RELIEF FROM SPIRALING HEALTH COSTS JUST LAST WEEK THE NATIONAL ASSOCIATION OF MANUFACTURERS MEETING IN LOS ANGELES APPLAUDED THE IDEA OF REQUIRING ALL EMPLOYERS TO CONTRIBUTE TO THEIR WORKERS' HEALTH INSURANCE COSTS EVEN MANY SMALL BUSINESSES THAT PREDICTED THE EMPLOYERCONTRIBUTION REQUIREMENT WOULD THREATEN THEIR SOLVENCY ADMIT THAT THE PLAN'S PROPOSED SUBSIDIES FOR SMALL LOWWAGE FIRMS MIGHT BE A GOOD DEAL BUT THE HUGE RETAILERS FEAR THE CLINTON PLAN WOULD BASH THEIR LABORINTENSIVE INDUSTRY WITH ITS BIG PARTTIME AND SEASONAL WORK FORCE WHILE NEARLY ALL PROVIDE HEALTH BENEFITS FOR THEIR FULLTIME WORK FORCE MANY DON'T GIVE PARTTIMERS SUCH COVERAGE THE CLINTON PLAN WOULD REQUIRE ALL EMPLOYERS TO PAY ON BEHALF OF EACH FULLTIME WORKER 80 OF THE AVERAGE HEALTH INSURANCE PREMIUM IN THEIR REGION AND CONTRIBUTE TO THE PREMIUMS OF PARTTIME EMPLOYEES WHO WORK AS FEW AS 10 HOURS A WEEK THE SIZE OF THE PARTTIME CONTRIBUTION WOULD BE PRORATED BASED ON THE NUMBER OF HOURS WORKED ADDING TO THEIR DIFFICULTIES THE BIG RETAILERS ARE TOO LARGE TO QUALIFY FOR SUBSIDIES BEYOND THE 79 OF PAYROLL CAP THE WHITE HOUSE PLAN WOULD PUT ON A COMPANY'S CONTRIBUTIONS COMPETITION IN OUR BUSINESS IS INTENSE OUR PROFITS ARE VERY LOW LESS THAN 2 AND TO REMAIN COMPETITIVE WE MUST TRIM EXPENSES AS WELL AS PRICES SAID TRACY MULLIN PRESIDENT OF THE NATIONAL FEDERATION OF RETAILERS RETAILERS CANNOT ABSORB OR PASS ON THE INCREASED COSTS OF MANDATED COVERAGE AND STILL STAY IN BUSINESS AT NORDSTROM INC IN SEATTLE WHERE ONETHIRD OF ITS 30000 WORKERS AREN'T COVERED UNDER THE COMPANY'S MEDICAL PLAN WE CAN'T AFFORD TO SPEND MORE ON BENEFITS SO SOMETHING ELSE WILL HAVE TO GIVE SAID JOE DEMARTE VICE PRESIDENT OF PERSONNEL BUT HE STRESSED THAT LAYOFFS AREN'T AN OPTION WE'RE ALREADY PRETTY LEAN AND MEAN HE SAID AND WE NEED SO MANY TO COVER OUR SERVICE LEVEL BUT LAYOFFS ARE A POSSIBILITY AT KMART IF THE WHITE HOUSE HEALTHCARE PLAN WENT IN AS PROPOSED WE'D HAVE TO LAY OFF SEVERAL THOUSAND PEOPLE DECLARED MR ANTONINI AT DAYTON HUDSON CORP IN MINNEAPOLIS HEALTHCARE COSTS WOULD JUMP TO 175 MILLION A YEAR FROM 110 MILLION ACCORDING TO A SPOKESWOMAN FOR THE FOURTHLARGEST US RETAILER IF WE WOULD TRY TO OFFSET THE COSTS THROUGH LAYOFFS WE WOULD NEED TO REDUCE OUR PARTTIME EMPLOYEES BY 20 SHE SAID BUT I'M SURE WE'D LOOK AT A COMBINATION OF WAYS TO DO SO FEDERATED DEPARTMENT STORES INC'S HEALTHCARE COSTS OF ABOUT 60 MILLION WOULD NEARLY DOUBLE IF THE CINCINNATI DEPARTMENT STORE OPERATOR HAD TO COVER ITS PARTTIMERS WHO CONSTITUTE 60 OF ITS WORK FORCE SAID A SPOKESWOMAN BUT THE CHANCES THAT THE PLAN AS IS WILL GO THROUGH ARE VIRTUALLY NIL THAT'S WHY WE'RE NOT HYPERVENTILATING AT THIS POINT SHE SAID WE PLAN TO ACTIVELY PARTICIPATE IN THE DEBATE INDEED MANY BUSINESSES CAUTION THEY CAN'T RESPOND TO THE CLINTON PROPOSALS UNTIL THEY'VE SEEN MORE DETAILS MR CLINTON SKETCHED THE GENERAL OUTLINES OF HIS PLAN IN A TELEVISED SEPT 22 SPEECH TO CONGRESS BUT HE HAS YET TO SEND LEGISLATION TO CAPITOL HILL ROGER ALTMAN DEPUTY TREASURY SECRETARY SAID FRIDAY THE ADMINISTRATION IS UNLIKELY TO HAVE THE BILL READY FOR ANOTHER TWO WEEKS FOUR WEEKS FIVE WEEKS PROBABLY TOWARD THE LATTER PART OF THAT RATHER THAN THE FORMER WE HAVE NOT MADE A WHOLE SERIES OF FINAL DECISIONS MR ALTMAN TOLD THE EMPLOYERS COUNCIL ON FLEXIBLE COMPENSATION WHICH HELD A HEALTHCARE FORUM IN WASHINGTON SENATE MINORITY LEADER ROBERT DOLE R KAN CRITICIZED THE ADMINISTRATION FOR THE DELAY I'M MYSTIFIED HE SAID ON NBCTV'S MEET THE PRESS YESTERDAY IT'S ALREADY LOST MOMENTUM AND WILL LOSE MORE IF THE ADMINISTRATION DOESN'T GET ITS HEALTH BILL TO CONGRESS SOON LIKE MANY OTHER BIG CORPORATIONS A NUMBER OF RETAILERS SAY OVERHAULING THE HEALTHCARE SYSTEM COULD UNDERMINE THEIR OWN EFFORTS TO CONTAIN HEALTHCARE COSTS SEARS ROEBUCK & CO BEGAN MOVING MANY OF ITS EMPLOYEES INCLUDING ITS TOP EXECUTIVES INTO A MANAGEDCARE NETWORK IN 1988 THE NEW ARRANGEMENT WHICH ALLOWS EMPLOYEES TO PICK FROM A LIST OF DOCTORS HAS SHARPLY SLOWED THE COMPANIES ANNUAL INCREASE IN HEALTH COSTS TO 5 TO 7 ANNUALLY BEFORE THAT WE WERE RUNNING ABOUT 15 TO 20 SAID EDWARD BRENNAN THE COMPANY'S PRESIDENT CHAIRMAN AND CHIEF EXECUTIVE OFFICER IT'S WORKED VERY WELL IT'S ENABLED US TO CONTAIN THE INCREASE NEVERTHELESS SEARS DOESN'T PROVIDE COVERAGE FOR ALL OF ITS PARTTIME EMPLOYEES 9310110137 931011 INTERNATIONAL YELTSIN ALLY SAYS PARLIAMENT'S OUSTER WILL EASE INVESTMENT NEW YORK THE HEAD OF RUSSIA'S STATE INVESTMENT CORPORATION REASSURED INVESTORS HERE THAT THE OUSTER OF RUSSIA'S REBELLIOUS PARLIAMENT SHOULD MAKE IT EASIER FOR AMERICANS TO DO BUSINESS IN RUSSIA ON A TRIP TO GENERATE INVESTMENT INTEREST IN RUSSIA YURI PETROV CHAIRMAN OF THE INVESTMENT CORPORATION AND AN OLD ALLY OF RUSSIAN PRESIDENT BORIS YELTSIN SAID THAT WHILE MANY ASPECTS OF ECONOMIC REFORM ARE STILL UNRESOLVED DISSOLUTION OF THE LEGISLATURE COULD ONLY BOLSTER REFORM THE OPPOSITION ALWAYS HINDERED THE REFORM PROCESS AND WHAT THEY DID ALWAYS CONCERNED PEOPLE MR PETROV SAID THE SITUATION IS STABILIZING IN RUSSIA AND WE CAN MOVE FORWARD WITH REFORM MR PETROV'S ORGANIZATION PROVIDES CONSIDERABLE INCENTIVES FOR FOREIGNERS TO INVEST IN RUSSIA BACKED BY 1 BILLION IN STATE PROPERTY SUCH AS PRECIOUS METALS AND WORKING CAPITAL OF 50 MILLION AND 200 BILLION RUBLES 168 MILLION THE RUSSIAN INVESTMENT CORPORATION WOULD INSURE FOREIGN INVESTORS AGAINST POLITICAL RISK IN RUSSIA IN RETURN THE CORPORATION A PRIVATE PROFITMAKING VENTURE CREATED BY PRESIDENTIAL DECREE IN FEBRUARY WOULD RECEIVE A NEGOTIATED PERCENTAGE OF FUTURE PROFITS AS PAYMENT FOR THE INSURANCE A PITCH FROM RUSSIA THESE DAYS TO AMERICAN INVESTORS IS FAST BECOMING A SERMON TO THE CONVERTED SAID VLADIMIR L KVINT A SENIOR CONSULTANT WITH ARTHUR ANDERSEN & CO HE ESTIMATED THE NUMBER OF USRUSSIA JOINT VENTURES HAS NEARLY TRIPLED IN THE LAST 18 MONTHS TO 1650 FROM 625 INDEED AT THE LUNCH MEETING SPONSORED BY THE NONPROFIT BUSINESS EXECUTIVES FOR NATIONAL SECURITY IN WASHINGTON MANY SAID THEIR COMPANIES AND CLIENTS WERE RELIEVED THAT THE PARLIAMENT WAS OUT OF THE PICTURE THE GOVERNMENT'S ABILITY TO DEAL STRONGLY WITH THE OPPOSITION IS A POSITIVE SIGN BECAUSE MANY OF THE ECONOMIC PROBLEMS HAD BEEN ROOTED IN THE PARLIAMENT SAID JOHN LEWIS A PORTFOLIO MANAGER AT SKANDIA INVESTMENT A US UNIT OF THE SWEDISH FINANCIAL CONCERN SKANDIA GROUP 9310110136 931011 TECHNOLOGY FDA PROPOSES TO REQUIRE FOLIC ACID IN SOME FOODS WASHINGTON THE FOOD AND DRUG ADMINISTRATION HAS PROPOSED REQUIRING THAT FOLIC ACID BE ADDED TO ENRICHED GRAIN PRODUCTS IN AN ATTEMPT TO REDUCE BIRTH DEFECTS THE AGENCY WOULD ALSO ALLOW PRODUCTS RICH IN FOLIC ACID WHICH IS A B VITAMIN TO HAVE LABELS NOTING THE BENEFICIAL EFFECTS TO WOMEN OF CHILDBEARING AGE THE LABEL ACTION HAD BEEN EXPECTED STUDIES LAST YEAR BY THE US PUBLIC HEALTH SERVICE FOUND THAT WOMEN WHO ADD 04 MILLIGRAM OF FOLIC ACID TO THEIR DAILY DIET REDUCE THE RISK OF GIVING BIRTH TO BABIES WITH SPINA BIFIDA A MALFORMATION OF THE SPINAL CORD OR ANENCEPHALY A FATAL DEFECT IN WHICH THE SKULL AND BRAIN DON'T DEVELOP THERE ARE ABOUT 2500 CASES ANNUALLY OF SUCH BIRTH DEFECTS PRODUCTS REQUIRED TO ADD FOLIC ACID WOULD INCLUDE ENRICHED FLOUR BREAD ROLLS BUNS CORN GRITS CORN MEAL FARINA RICE MACARONI AND NOODLES FOLIC ACID OCCURS NATURALLY IN CITRUS FRUITS AND DARK LEAFY VEGETABLES THE AGENCY SAID IT WOULD LIMIT THE AMOUNT OF FOLIC ACID TO BE ADDED SINCE TOO MUCH CAN MASK SYMPTOMS OF A VITAMIN B12 DEFICIENCY THE FDA WILL ACCEPT PUBLIC COMMENT FOR 60 DAYS AND WILL ALSO HOLD A MEETING THIS WEEK OF ITS FOOD ADVISORY COMMITTEE AT WHICH THE PLAN WILL BE DISCUSSED 9310110134 931011 MARKETING & MEDIA ABC GRANTS NYPD BLUE' TO NONAFFILIATE STATIONS NEW YORK ABC GAVE RIGHTS TO ITS CONTROVERSIAL SERIES NYPD BLUE TO A DALLASFORT WORTH INDEPENDENT STATION AND A CAPE GIRARDEAU MO FOX BROADCASTING CO AFFILIATE ABC AFFILIATES IN THE CITIES HAVE DECLINED TO CARRY THE SHOW CITING ITS NUDITY AND PROFANITY SIMILAR DEALS UNUSUAL FOR A PRIMETIME SERIES ARE BEING DISCUSSED IN MANY OF THE 48 MARKETS WHERE ABC STATIONS ARE PREEMPTING THE SHOW THE 48 STATIONS OF WHICH DALLAS IS THE LARGEST REACH 8 OF THE 931 MILLION US HOMES WITH TELEVISION SETS ALTHOUGH ABC HAS GIVEN ITS SHOWS TO NONABC STATIONS IN THE PAST THE PREEMPTION PROBLEM HAS NEVER BEEN AS WIDESPREAD AS WITH NYPD BLUE THE TWO STATIONS KTXA IN FORT WORTH AND KBSI IN CAPE GIRARDEAU WILL CARRY THE SHOW IN ITS REGULAR 9 PM CST PERIOD STARTING OCT 26 AND WILL AIR THE FIRST FIVE EPISODES BEFORE THEN ABC'S AFFILIATES HAVE THE OPTION TO TAKE THE SHOW BACK AT THE END OF THE YEAR EVEN WITHOUT ONEFOURTH OF ABC'S AFFILIATES THE SHOW DREW MORE THAN 15 OF US TV HOMES IN ITS FIRST THREE WEEKS MAKING IT THE FALL'S TOPRATED NEW DRAMA ABC IS A UNIT OF CAPITAL CITIES/ABC INC AND FOX IS A UNIT OF NEWS CORP 9310110133 931011 DEMOCRATS SHOW READINESS TO TAKE ON CLINTON CRITICS WASHINGTON THE DEMOCRATIC PARTY SIGNALED A NEW WILLINGNESS TO TAKE ON THOSE WHO ARE FIGHTING PRESIDENT CLINTON INCLUDING AN INFLUENTIAL SMALLBUSINESS LOBBY IN A SPEECH TO THE DEMOCRATIC NATIONAL COMMITTEE'S FALL MEETING PARTY CHAIRMAN DAVID WILHELM SINGLED OUT ORGANIZATIONS THAT HAVE BATTLED CLINTON INITIATIVES AND PROMISED THAT DEMOCRATS WILL MEET THEIR ATTACKS HEADON THE WARNING WAS A PARTICULARLY BLUNT MESSAGE COMING FROM A PARTY CHAIRMAN SOMEONE WHO NORMALLY FOCUSES HIS FIRE ON THE REPUBLICAN PARTY AND ITS LEADERS NOTABLY MR WILHELM SAID DEMOCRATS WILL BE WILLING TO BATTLE THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS A VOCAL SMALLBUSINESS LOBBY THAT FOUGHT THE PRESIDENT'S BUDGET INITIATIVES AND HAS BITTERLY OPPOSED HIS HEALTHCARE PROPOSAL IN ADDITION MR WILHELM CITED THE NATIONAL RIFLE ASSOCIATION THE CHRISTIAN COALITION THE HEALTH INSURANCE ASSOCIATION OF AMERICA AND THE CITIZENS FOR A SOUND ECONOMY A CONSERVATIVE ECONOMIC POLICY ORGANIZATION 9310110132 931011 INTERNATIONAL MEXICAN FIRM'S BIG PROJECT AIMS TO REPLACE PHONES SPECIAL TO THE WALL STREET JOURNAL MEXICO CITY TELECOMMUNICATIONS GIANT TELEFONOS DE MEXICO SA WILL SPEND ABOUT 30 MILLION NEXT YEAR IN THE FIRST STAGE OF A MASSIVE PROJECT TO REPLACE MEXICO'S EVERBROKEN PUBLIC TELEPHONES PEOPLE INVOLVED WITH THE PROJECT SAID TELMEX CURRENTLY IS WORKING WITH FOUR FOREIGN COMPANIES ON A PILOT PROGRAM INSTALLING MODERN PUBLIC TELEPHONES IN FOUR SMALL CITIES TELMEX WILL TAKE THAT PROJECT TO THE NATIONAL LEVEL AND MEXICO CITY NEXT YEAR THE GOAL IS TO ADD 30000 NEW VANDALPROOF PUBLIC PHONES NEXT YEAR AT A COST OF ABOUT 1000 EACH TELMEX PLANS TO ADD AN ADDITIONAL 30000 PHONES A YEAR DURING EACH OF THE NEXT SEVERAL YEARS A RECENT GOVERNMENT STUDY SAID THAT OF THE 12000 PUBLIC PHONES IN MEXICO CITY 60 ARE OUT OF ORDER EITHER DUE TO VANDALISM OR A LACK OF MAINTENANCE WITHIN THE MONTH TELMEX WILL AWARD LONGTERM CONTRACTS TO THREE OF THE FOUR COMPANIES NOW INSTALLING PUBLIC TELEPHONES IN VERACRUZ LEON CUERNAVACA AND TOLUCA ON A TRIAL BASIS PEOPLE INVOLVED SAID THOSE COMPANIES ARE MONATEL SA OF FRANCE SCHLUMBERGER LTD ANRITSU CORP OF JAPAN AND QUADRUM SA A MEXICANUS JOINT VENTURE 9310110131 931011 FINANCING BUSINESS DETROIT DIESEL CORP DETROIT DIESEL CORP DETROIT SAID IT WILL BEGIN AN INITIAL PUBLIC OFFERING OF 4750000 COMMON SHARES PRICED AT 20 EACH THE COMPANY EXPECTS TO RAISE 95 MILLION FROM THE OFFERING WHICH IS LESS THAN THE ORIGINAL 98 MILLION ESTIMATE IN AUGUST PROCEEDS WILL BE USED TO REPAY DEBT TO GENERAL MOTORS CORP AND PENSKE CORP WHICH BOUGHT DETROIT DIESEL FROM GM IN 1988 THE COMPANY SAID IT ALSO WILL REPURCHASE A RELATED BUSINESS IT SOLD TO RAISE CASH MERRILL LYNCH & CO IS THE LEAD UNDERWRITER ALONG WITH SALOMON BROTHERS INC AND WERTHEIM SCHRODER & CO DETROIT DIESEL DESIGNS AND BUILDS HEAVYDUTY DIESEL ENGINES AND ENGINE PARTS 9310110130 931011 INTERNATIONAL ISRAEL IS PUSHING TO GET A SHARE OF PALESTINIAN BUILDING PROGRAM BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL TEL AVIV ISRAEL INCREASINGLY CONCERNED ABOUT PALESTINIAN RELUCTANCE TO COMMIT TO JOINT ECONOMIC PROJECTS IS TAKING STEPS TO ENSURE THAT IT WON'T BE CUT OUT OF THE BUSINESS OF BUILDING THE PALESTINIAN ECONOMY THE ISSUE HAS BECOME PARTICULARLY IMPORTANT IN RECENT WEEKS AFTER SENIOR PALESTINE LIBERATION ORGANIZATION OFFICIALS SAID THEY SUPPORT THE CONTINUATION OF THE ARAB ECONOMIC BOYCOTT AGAINST ISRAEL AND THAT ISRAELI COMPANIES MAY BE BARRED FROM PLAYING A ROLE IN THE MASSIVE PUBLIC SECTOR AND INFRASTRUCTURE INVESTMENT PROGRAM SLATED FOR THE WEST BANK AND GAZA STRIP DURING INTERIM PALESTINIAN SELFRULE PLO ECONOMISTS SAY THEY INTEND TO SPEND 2 BILLION A YEAR ON INFRASTRUCTURE INCLUDING 700 MILLION TO 800 MILLION FOR URGENT HOUSING NEEDS DURING A RECENT TRIP TO WASHINGTON ISRAELI FINANCE MINISTER AVRAHAM SHOHAT PROPOSED THAT ALL INFRASTRUCTURE PROJECTS FUNDED WITH INTERNATIONAL MONETARY AID BE DONE UNDER THE AUSPICES OF THE WORLD BANK IN ORDER TO ENSURE THAT ISRAELI COMPANIES NOT JUST US JAPANESE EUROPEAN AND ARAB CONCERNS BE ALLOWED TO COMPETE FOR AND WIN CONTRACTS FOR THE VARIOUS PROJECTS AND IN A HASTILY ARRANGED TRIP ISRAELI HOUSING MINISTER BENJAMIN BENELIEZER IS FLYING TO WASHINGTON THIS WEEK TO RAISE ISRAELI CONCERNS ABOUT GETTING A FAIR SHARE OF THE DEVELOPMENT PIE WITH HOUSING AND URBAN DEVELOPMENT SECRETARY HENRY CISNEROS AND OTHER US OFFICIALS IN AN INTERVIEW IN HIS OFFICE IN TEL AVIV OVER THE WEEKEND MR BENELIEZER SAID ISRAELI POLICY IS THAT THE PALESTINIANS MUST DECIDE WHETHER THEY WANT ECONOMIC COOPERATION WITH THE ISRAELIS AND HE EMPHASIZED THAT ISRAEL HAS NO DESIRE TO MAINTAIN ECONOMIC CONTROL OVER THE TERRITORIES BUT MR BENELIEZER WENT ON TO SAY THAT THE ONLY WAY TO GUARANTEE THE SUCCESS OF THE ISRAELPLO ACCORD SIGNED LAST MONTH GRANTING LIMITED PALESTINIAN AUTONOMY IN THE WEST BANK AND GAZA IS FOR BOTH PALESTINIANS AND ISRAELIS TO REALIZE IMMEDIATE ECONOMIC BENEFITS FROM THE AGREEMENT HE SAID ISRAEL HAD SHOWN ITS COMMITMENT TO THE PROCESS BY LEADING THE INTERNATIONAL FUNDRAISING DRIVE FOR THE PALESTINIANS AND OFFERING 25 MILLION IN AID AND 50 MILLION IN GUARANTEES TO THE PALESTINIAN SELFRULING AUTHORITY BUT THAT SO FAR ISRAEL IS GETTING NOTHING IN RETURN IF THE PALESTINIANS WILL ACCEPT THE THEORY OF ECONOMICAL INTERACTION WITH ISRAEL THIS PEACE WILL BE MUCH MORE MEANINGFUL AND SOLID SAYS MR BENELIEZER PALESTINIANS AND ISRAELIS MUST UNDERSTAND THAT AS A RESULT OF THIS PEACE THEY WILL NOT ONLY GAIN FREEDOM BUT THAT THEY WILL BENEFIT ECONOMICALLY PALESTINIAN ECONOMISTS HAVE SAID THAT WHILE THEIR PRIORITY IS TO CREATE JOBS IN THE PRIVATE SECTOR IN THE WEST BANK AND GAZA FULL EMPLOYMENT WILL BE IMPOSSIBLE UNLESS SUBSTANTIAL NUMBERS OF PALESTINIANS AT LEAST 100000 BY MANY ESTIMATES CONTINUE TO WORK IN ISRAEL ISRAELI WILLINGNESS TO ALLOW PALESTINIANS ACCESS TO THE COUNTRY'S LABOR MARKETS SAYS MR BENELIEZER SHOULD BE MATCHED BY PALESTINIAN WILLINGESS TO OPEN THEIR ECONOMY TO ISRAELI COMPANIES THEY SHOULD GIVE US THE CHANCE TO RUN AGAINST JAPAN EUROPE OR WHOMEVER GIVE US THE CHANCE MAYBE WE WILL BE THE CHEAPEST AND THE BEST SAYS MR BENELIEZER THE SHORT DISTANCE BETWEEN ISRAELI AND PALESTINIAN MARKETS ISRAEL'IARITY WITH THE WEST BANK AND GAZA AND THE COUNTRY'S EXPERIENCE IN UNDERTAKING LARGE NATIONAL INFRASTRUCTURE PROJECTS MAKES ISRAEL THE PALESTINIANS' BEST ECONOMIC PARTNER HE ADDED 9310110129 931011 TECHNOLOGY US SURGICAL'S DECISION TO TRIM COSTS REFLECTS COMPETITION HEALTH CONCERNS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL US SURGICAL CORP'S PLAN TO ANNOUNCE MAJOR COSTCUTTING MOVES THIS WEEK REFLECTS THE COMPANY'S STRUGGLE WITH AN AGGRESSIVE COMPETITOR AND A MARKET WHIPSAWED BY CONCERNS OVER HEALTHCARE COSTS AND HEALTH REFORM THE ONCE HIGHFLYING NORWALK CONN MAKER OF SURGICAL STAPLES AND EQUIPMENT FOR ENDOSCOPIC SURGICAL PROCEDURES IS EXPECTED TO REPORT ITS SECOND CONSECUTIVE QUARTERLY LOSS ON THURSDAY WHEN IT ALSO WILL DISCLOSE DETAILS OF ITS COSTCUTTING EFFORT IN THE THIRD QUARTER OF 1992 THE COMPANY POSTED A PROFIT OF 365 MILLION OR 61 CENTS A SHARE ON SALES OF 2933 MILLION THEY UNDERSTAND VERY CLEARLY THAT THEY NEED TO BRING THEIR COSTS DOWN IN LINE WITH THE NEW REALITIES SAID KURT KRUGER ANALYST WITH HAMBRECHT & QUIST IN NEW YORK BUT WHETHER THE COMPANY PLANS TO ANNOUNCE A MINOR ADJUSTMENT AND FINETUNING OR SOMETHING QUITE DRAMATIC WE'RE NOT SURE LEON HIRSCH US SURGICAL'S CHAIRMAN TOLD A HEALTHCARE CONFERENCE SPONSORED BY COWEN & CO LAST WEEK THAT THE COMPANY WAS TAKING STRINGENT STEPS TO REDUCE COSTS ESPECIALLY ADMINISTRATIVE OVERHEAD AND INVENTORY IN AN INTERVIEW FRIDAY MR HIRSCH REFUSED TO ELABORATE ON THE COMPANY'S PLANS THOUGH HE INDICATED ITS 550PERSON US SALES FORCE WOULD BE LARGELY UNTOUCHED THE SALES FORCE IS THE FRONT LINES OF A MARKETING OPERATION HE SAID THAT'S THE LAST PLACE IN THE WORLD YOU WANT TO CUT SOME ANALYSTS THINK MORE CENTRALIZED PURCHASING STRATEGIES ADOPTED BY HOSPITALS TO CUT COSTS HAVE DIMINISHED THE IMPACT OF INDIVIDUAL SALESPEOPLE MARKETING PRODUCTS DIRECTLY TO PHYSICIANS US SURGICAL'S SALES FORCE HELPED TRAIN MOST OF THE NATION'S SURGEONS IN SOCALLED LAPAROSCOPIC GALLBLADDER SURGERY A MINIMALLY INVASIVE PROCEDURE NOW PERFORMED ON MORE THAN 80 OF THE NATION'S 600000 ANNUAL GALLBLADDER PATIENTS EXPLOSIVE POPULARITY OF THE PROCEDURE IN THE EARLY 1990S FUELED THE COMPANY'S 40PLUS ANNUAL EARNINGS GROWTH BUT THE GALLBLADDER MARKET IS NOW SATURATED AND MINIMALLY INVASIVE TECHNIQUES FOR SUCH PROCEDURES AS HYSTERECTOMIES APPENDECTOMIES AND HERNIA REPAIRS HAVE FAILED TO MEET HIGH EXPECTATIONS MEANWHILE AGGRESSIVE PRICE CUTTING BY JOHNSON & JOHNSON'S ETHICON UNIT HAS ERODED US SURGICAL'S MARKET SHARE EVEN WHILE THE COMPANY SWITCHED TO SOCALLED JUSTINTIME DISTRIBUTION TO MEET HOSPITAL PURCHASING DEMANDS AND MR HIRSCH SAID UNCERTAINTY ABOUT PRESIDENT CLINTON'S HEALTHREFORM PLAN DAMPED HOSPITAL BUYING ALL OF THIS HAS BATTERED EARNINGS THE COMPANY POSTED A 22 MILLION LOSS IN THE SECOND QUARTER ON A 25 DROP IN SALES IN ONE OPTIMISTIC SIGN MR HIRSCH SAID AETNA LIFE & CASUALTY CO LATE LAST MONTH REVERSED ITS POLICY ON ENDOSCOPIC HERNIA REPAIR AND WILL NOW REIMBURSE DOCTORS AND HOSPITALS FOR THE PROCEDURE AETNA'S POSITION HAD HINDERED SALES OF EQUIPMENT FOR THE PROCEDURE HE SAID IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY US SURGICAL CLOSED AT 2375 DOWN 875 CENTS AFTER SURGING 22 ON THURSDAY 9310110128 931011 LAW JURY RULES AGAINST KMART IN CASE OF 1987 SHOOTING WEST PALM BEACH FLA AP KMART CORP MUST PAY MORE THAN 11 MILLION TO A WOMAN LEFT A QUADRIPLEGIC AFTER HER DRUNKEN BOYFRIEND SHOT HER WITH A RIFLE HE BOUGHT FROM THE RETAILER A JURY RULED FRIDAY THE 125 MILLION VERDICT AGAINST KMART AND THOMAS W KNAPP WHO SHOT DEBORAH KITCHEN IN THE NECK ON DEC 14 1987 SENDS A MESSAGE TO GUN RETAILERS SAID MS KITCHEN'S LAWYER GREGORY STINE THE JURY FOUND MR KNAPP WHO IS SERVING A 40YEAR PRISON SENTENCE FOR THE SHOOTING PARTIALLY RESPONSIBLE HE MUST PAY ABOUT 1 MILLION OF THE TOTAL VERDICT MR STINE SAID THE CLERK WHO SOLD MR KNAPP THE RIFLE AT A KMART IN TAMPA FLA SAID MR KNAPP DIDN'T SEEM DRUNK BUT HAD TROUBLE FILLING OUT FEDERAL BUREAU OF ALCOHOL TOBACCO AND FIREARMS FORMS REQUIRED FOR GUN PURCHASES BECAUSE MR KNAPP'S WRTING WAS ILLEGIBLE THE CLERK COPIED THE INFORMATION ONTO ANOTHER FORM AND HAD MR KNAPP SIGN IT MR KNAPP SHOT MS KITCHEN SHORTLY AFTER BUYING THE RIFLE IT WAS NOT SO MUCH THAT MR KNAPP WAS DRUNK SAID JURY FOREMAN SEAN CALLAHAN THERE WAS NEGLIGENCE ON KMART'S PART FOR NOT TRAINING THE SALESPERSON KMART LAWYER AMY SMITH SAID THE COMPANY WILL APPEAL 9310110127 931011 WHO'S NEWS NATIONAL WESTMINSTER BANK PLC NATIONAL WESTMINSTER BANK PLC LONDON GORDON A OLIOSI 48 YEARS OLD WAS ELECTED EXECUTIVE VICE PRESIDENT OF THIS BANKING CONCERN'S NATIONAL WESTMINSTER BANCORP INC UNIT BASED IN JERSEY CITY NJ IN THE NEW POSITION MR OLIOSI WILL BE RESPONSIBLE FOR BRANCH BANKING IN NATWEST'S COMMUNITY BANKING GROUP HE FORMERLY WAS MANAGING DIRECTOR OF NATWEST HOME MORTGAGE CORP 9310110126 931011 FINANCING BUSINESS HERBALIFE INTERNATIONAL INC HERBALIFE INTERNATIONAL INC INGLEWOOD CALIF SAID IT BEGAN A PUBLIC OFFERING OF 54 MILLION COMMON SHARES AT 1250 EACH OF THE SHARES BEING OFFERED 17 MILLION ARE BEING SOLD BY MARK HUGHES CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE MAKER OF WEIGHTCONTROL PRODUCTS MR HUGHES WHO HASN'T SOLD SHARES BEFORE AND SAYS HE IS DOING SO NOW TO DIVERSIFY HIS PORTFOLIO WILL HAVE 176 MILLION SHARES OR A 62 STAKE IN THE COMPANY AFTER THE OFFERING ANOTHER 17 MILLION SHARES ARE BEING OFFERED BY LARRY THOMPSON A DIRECTOR AND FORMER OFFICER OF THE COMPANY TWO MILLION SHARES ARE BEING OFFERED BY HERBALIFE SALOMON BROTHERS INC AND NATWEST SECURITIES LTD ARE THE MANAGING UNDERWRITERS IN NATIONAL OVERTHECOUNTER TRADING FRIDAY HERBALIFE SHARES CLOSED AT 13 DOWN 375 CENTS 9310110125 931011 WHO'S NEWS TEXAS INSTRUMENTS INC TEXAS INSTRUMENTS INC DALLAS CHRISTINE B DAVIS 41 YEARS OLD WAS NAMED VICE PRESIDENT OF THIS DEFENSE AND ELECTRONICS CONCERN'S DEFENSE SYSTEMS & ELECTRONICS GROUP AND MANAGER OF THE GROUP'S ENGINEERING DIVISION MS DAVIS WAS MANAGER OF THE DIVISION'S SOFTWARE ENGINEERING DEPARTMENT SHE SUCCEEDS JAMES R MCLENDON 52 WHO IS NOW VICE PRESIDENT AND CHIEF INFORMATION OFFICER OF TEXAS INSTRUMENTS 9310110124 931011 WHO'S NEWS PLUM CREEK TIMBER CO PLUM CREEK TIMBER CO SEATTLE RICK HOLLEY 41 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS FOREST PRODUCTS COMPANY MR HOLLEY IS CURRENTLY VICE PRESIDENT AND CHIEF FINANCIAL OFFICER HE WILL SUCCEED DAVID LELAND 58 ON JAN 1 MR LELAND WILL CONTINUE AS CHAIRMAN 9310110123 931011 BROWNINGFERRIS BACKS OUT OF PLANS TO ACQUIRE WESTERN WASTE INDUSTRIES BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL BROWNINGFERRIS INDUSTRIES INC DROPPED PLANS TO ACQUIRE WESTERN WASTE INDUSTRIES INC FOR STOCK VALUED AT MORE THAN 400 MILLION IN THE LATEST SIGN THAT MAJOR ENVIRONMENTAL COMPANIES ARE GROWING CAUTIOUS ABOUT BIG INVESTMENTS THE GARBAGE AND HAZARDOUSWASTE BUSINESSES HAVE BEEN LOCKED IN SOMETHING AKIN TO AIRLINES' FARE WARS COMPETING FOR LOWERTHANEXPECTED WASTE VOLUMES USING CUTTHROAT PRICING WITH LITTLE END IN SIGHT BECAUSE OF AN ABUNDANCE IN MOST MARKETS OF DUMP AND OTHER DISPOSAL CAPACITY THE DIMMED LONGTERM PROSPECTS HAVE FORCED SOME COMPANIES IN RECENT QUARTERS TO WRITE DOWN THE VALUE OF DUMPS AND INCINERATORS AND SEEK COST CUTS TO MAINTAIN PROFITS HOUSTONBASED BROWNINGFERRIS THE WORLD'S SECONDBIGGEST TRASH HAULER AGREED TENTATIVELY ON SEPT 1 TO ACQUIRE WESTERN WASTE A REGIONAL HAULER BASED IN GARDENA CALIF INCLUDING THE ASSUMPTION OF DEBT THE TOTAL ACQUISITION COST WOULD HAVE BEEN ABOUT 520 MILLION OR MORE THAN TWICE THE AMOUNT OF WESTERN WASTE'S ANNUAL REVENUE OF ABOUT 230 MILLION A PRICE SOME ANALYSTS AND INVESTORS SAW AS TOO STEEP WILLIAM D RUCKELSHAUS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BROWNINGFERRIS SAID IN AN INTERVIEW LAST WEEK WHILE THE REVIEW OF WESTERN WASTE'S OPERATIONS WAS STILL GOING ON THAT THE DEAL'S SUCCESS HINGED ON FINDING COST CUTS BIG ENOUGH TO GREATLY BOOST WESTERN WASTE'S PROFIT NEITHER COMPANY WOULD SAY WHY THE TRANSACTION WAS CALLED OFF FRIDAY AFTER THE ANNOUNCEMENT WESTERN WASTE SHARES PLUNGED 675 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING TO CLOSE AT 11 BROWNINGFERRIS SHARES ROSE 625 CENTS TO 24 ON THE BIG BOARD WESTERN WASTE HOLDERS WERE TO RECEIVE 102 BROWNINGFERRIS SHARES FOR EACH OF THEIR SHARES WITH ABOUT 14 MILLION OUTSTANDING AND THREE MILLION OPTIONS COVERED BY THE NOWCANCELED AGREEMENT THE ANNOUNCEMENT IS A BIG BLOW TO WESTERN WASTE SHAREHOLDERS WHO SAW THEIR STOCK REACH 2350 IN 1991 WHEN THE TRASH BUSINESS WAS STILL PERCEIVED TO BE BOOMING AND THEN SINK AS LOW AS 875 DURING THE PAST YEAR AS THE COMPANY WAS HIT BY THE INDUSTRY SLOWDOWN AND ECONOMIC RECESSION IN ITS HOME SOUTHERN CALIFORNIA MARKET KOSTI SHIRVANIAN THE COMPANY'S CHIEF EXECUTIVE WOULD HAVE RECEIVED BROWNINGFERRIS SHARES VALUED AT ABOUT 135 MILLION OTHER SUITORS COULD EMERGE AND BROWNINGFERRIS COULD RETURN WITH A LOWER BID WESTERN WASTE IN AUGUST SAID IT HAD TALKED WITH OTHER COMPANIES WHICH IT DECLINED TO NAME WE'RE LOOKING AT OUR OPTIONS A SPOKESMAN SAID A VARIETY OF DIFFERENT THINGS FOR THE COMPANY IN THE FUTURE WMX TECHNOLOGIES INC THE NO 1 HAULER THROUGH ITS WASTE MANAGEMENT INC UNIT WOULDN'T COMMENT MUCH OF THE POTENTIAL VALUE OF WESTERN WASTE LIES IN A HUGE DUMP IT OWNS IN RIVERSIDE COUNTY CALIF WHICH COULD TAKE LOS ANGELESAREA TRASH BROWNINGFERRIS AND WMX TECHNOLOGIES ALSO ARE TRYING TO WIN PERMITS FOR DESERT SITES ALTHOUGH SOUTHERN CALIFORNIA'S NEED FOR THEM ISN'T AS IMMEDIATE AS ONCE THOUGHT BECAUSE RECYCLING AND RECESSION HAVE CUT DEEPLY INTO TRASH VOLUMES 9310110122 931011 MARTIN MARIETTA CLOSE TO BUYING ROCKET BUSINESS FIRM NEARS PACT TO ACQUIRE GENERAL DYNAMICS' UNIT FOR ABOUT 300 MILLION BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MARTIN MARIETTA CORP IS NEARING AN AGREEMENT TO BUY GENERAL DYNAMICS CORP'S SPACELAUNCH BUSINESS FOR ABOUT 300 MILLION ACCORDING TO PEOPLE FAMILIAR WITH THE NEGOTIATIONS THE TALKS SHOULD BE COMPLETE WITHIN THE NEXT FEW WEEKS WITH THE COMPANIES HOPING FOR REGULATORY APPROVALS BY YEAR END AMID NEWS REPORTS FRIDAY OF THE IMPENDING TRANSACTION MARTIN MARIETTA STOCK CLOSED AT 4525 A SHARE UNCHANGED WHILE GENERAL DYNAMICS CLOSED AT 9775 A SHARE UP 150 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SPOKESMEN FOR BOTH COMPANIES DECLINED TO COMMENT ON THE LATEST NEGOTIATIONS THE TRANSACTION WOULD SIGNIFY THE RADICALLY DIVERGENT PATHS THE TWO BIG AEROSPACE AND DEFENSE CONCERNS HAVE TAKEN IN COMING TO GRIPS WITH THE SHARP DROP IN US AND GLOBAL MILITARY SPENDING IN RECENT YEARS FOR MARTIN MARIETTA BASED IN BETHESDA MD THE TRANSACTION WOULD ADD A LIGHTERLIFT CAPABILITY TO ITS EXISTING TITAN ROCKETLAUNCH LINE AND WOULD EXTEND THE AGGRESSIVE ACQUISITION TACK THAT BEGAN LAST YEAR BY CHAIRMAN NORMAN AUGUSTINE WHEN HE ANNOUNCED A 3 BILLION PURCHASE OF GENERAL ELECTRIC CO'S AEROSPACE UNIT WITH THE LATEST AGREEMENT IN PLACE RAPIDLY SHRINKING GENERAL DYNAMICS WOULD MARK ANOTHER MILESTONE IN ITS ENERGETIC TWOYEAR MANEUVER TO SELL MANY OF ITS BIGGEST UNITS INCLUDING ITS FIGHTERJET MISSILE AND CESSNA GENERALAIRCRAFT LINES HAVING DISBURSED ABOUT 155 BILLION OF THE PROCEEDS TO SHAREHOLDERS IN SPECIAL PAYMENTS THE ONETIME INDUSTRY GIANT HAS BEEN LEFT WITH TANK AND NUCLEARSUBMARINE BUSINESSES A BUILDINGMATERIALS AND RESOURCES UNIT DIVERSE SMALLER OPERATIONS SOME CALIFORNIA REAL ESTATE HOLDINGS AND THE ATLASCENTAUR SPACELAUNCH SYSTEMS AS A VITAL SUPPLIER OF TANKS AND SUBMARINES GENERAL DYNAMICS BASED IN FALLS CHURCH VA IS HOPING TO GET SPECIAL SUPPORT FROM THE US GOVERNMENT TO MAINTAIN PROFITS AND PROP UP RELATED FACTORIES IN OHIO MICHIGAN AND CONNECTICUT AN ABUNDANCE OF SPACELAUNCH SUPPLIERS GLOBALLY AND FAILED ATLASCENTAUR MISSIONS IN 1991 1992 AND LAST MARCH HAVE HAMPERED THE SALE OF THAT BUSINESS ALTHOUGH COMPANY OFFICIALS SAID THREE LAUNCHES SINCE THEN HAVE BEEN LARGELY SUCCESSFUL TWO MORE LAUNCHES OF MILITARY AND COMMERCIAL SATELLITES ARE SCHEDULED THIS YEAR AND THE COMPANY HOLDS CONTRACTS TO LAUNCH 29 MORE COMMERCIAL SATELLITES A GENERAL DYNAMICS SPOKESMAN SAID HE WASN'T AWARE OF ANY NEW COMMERCIAL LAUNCH CONTRACTS SIGNED SINCE THE EARLIER SPATE OF PROBLEMS COMPANY OFFICIALS HAVE HINTED TO ANALYSTS THAT THEY COULD SELL THE BUILDINGMATERIALS BUSINESS PIECEMEAL NEXT YEAR IT INCLUDES BUSINESSES TRADING IN AGGREGATES LIMESTONE CONCRETE COAL AND OTHER PRODUCTS IT REMAINS TO BE SEEN IF THE COMPANY CAN SELL ITS CALIFORNIA REAL ESATE AND REMAINING SMALLER BUSINESSES SUCH AS AN OPERATION THAT PRODUCES FUSELAGE SECTIONS FOR MCDONNELL DOUGLAS CORP'S MD11 AIRLINER WHILE THE COMPANY HAS MORE CASH COMING THE SPECIAL PAYMENTS TO DATE TO STOCKHOLDERS ARE EXPECTED TO CEASE BECAUSE THE PAYMENTS QUALIFIED FOR A TAXRELATED PLAN OF CONTRACTION DUE TO RUN ITS COURSE BY THE END OF THE YEAR THE COMPANY ALREADY RAISED ITS PERSHARE DIVIDEND 50 EARLIER THIS YEAR JAMES MELLOR PRESIDENT OF GENERAL DYNAMICS TOLD ANALYSTS AT A SEPTEMBER CONFERENCE IN NEW YORK THAT SHARE BUYBACKS ARE AN EFFECTIVE OPTION FOR RETURNING TO SHAREHOLDERS THE VALUE FROM THE COMPANY'S ASSET SALES HE ALSO NOTED A STOCK SPLIT IN THE FUTURE COULD BE A USEFUL STRATEGIC TOOL FOR THE COMPANY 9310110121 931011 WHO'S NEWS CYTOGEN CORP CYTOGEN CORP PRINCETON NJ T JEROME MADISON WAS NAMED VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER OF THIS BIOPHARMACEUTICAL COMPANY MR MADISON 53 YEARS OLD RETURNS TO CYTOGEN AFTER LEAVING IN 1986 HE MOST RECENTLY WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MONTGOMERY PARTNERS A VENTURE CAPITAL GROUP 9310110120 931011 ECONOMY EMPLOYMENT RESUMED RISING IN SEPTEMBER ECONOMY'S SLOW EXPANSION CONTINUED AS EMPLOYERS ADDED 156000 WORKERS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ECONOMY CONTINUED ITS FRUSTRATINGLY SLOW EXPANSION IN SEPTEMBER THE LATEST GOVERNMENT REPORT ON EMPLOYMENT SHOWED THE LABOR DEPARTMENT SAID EMPLOYERS ADDED 156000 JOBS LAST MONTH HIRING BY RETAILERS AND LOCAL GOVERNMENTS COMPENSATED FOR CONTINUED LAYOFFS IN MANUFACTURING AND UNUSUAL WEAKNESS IN THE TEMPORARYHELP INDUSTRY THE UNEMPLOYMENT RATE WAS UNCHANGED AT 67 OF THE WORK FORCE THE GOVERNMENT COUNTED 85 MILLION PEOPLE UNEMPLOYED 13 MILLION FEWER THAN IN JUNE 1992 WHEN THE JOBLESS RATE PEAKED AT 77 THE REAL MESSAGE HERE IS THAT EVEN THOUGH THE ECONOMY IS IMPROVING FROM WHAT WE SAW IN THE FIRST HALF OF THE YEAR THE IMPROVEMENT IS LIKELY TO BE IN FITS AND STARTS SAID RICHARD BERNER CHIEF ECONOMIST AT PITTSBURGH'S MELLON BANK A 08 DECLINE IN THE TOTAL NUMBER OF HOURS WORKED IN THE ECONOMY SUGGESTS THAT PERSONAL INCOME WAS WEAK LAST MONTH SAID ANOTHER BROKERAGE HOUSE ECONOMIST EDWARD YARDENI OF CJ LAWRENCE INC A 02 DROP IN HOURS WORKED IN MANUFACTURING SUGGESTS OUTPUT WAS OFF SLIGHTLY PEOPLE ARE STILL GOING TO BE VERY LEERY ABOUT HIRING WORKERS SAID EVELINA TAINER A CHICAGO FORECASTER STILL ECONOMISTS EXPECT THE SLUGGISH THIRD QUARTER TO BE FOLLOWED BY A STRONGER FOURTH QUARTER AS BUSINESSES ADD TO THEIR LEAN INVENTORIES THERE ARE A LOT OF SPECIAL FACTORS THAT ARE DEPRESSING THE THIRD QUARTER SAID LAWRENCE MEYERS A ST LOUIS ECONOMIST WE ARE BUILDING TOWARDS A PRETTY SOLID FOURTH QUARTER HE ESTIMATES THAT THE ECONOMY GREW AT A 23 ANNUAL RATE IN THE THIRD QUARTER BUT WILL GROW 34 IN THE FOURTH ALAN BLINDER A MEMBER OF PRESIDENT CLINTON'S COUNCIL OF ECONOMIC ADVISERS SAID THE INCREASE IN EMPLOYMENT IS RIGHT ABOUT THE TREND THAT WE EXPECT TO CONTINUE FOR A WHILE AND IS CONSISTENT WITH THE WHITE HOUSE FORECAST THAT THE ECONOMY IS GROWING AND WILL CONTINUE TO GROW AT ABOUT A 3 ANNUAL RATE FRIDAY PRESIDENT CLINTON BOASTED THAT EVEN THOUGH JOB CREATION HAS BEEN SLOWER THAN WE THOUGHT IT WOULD BE THE PRIVATE SECTOR HAS CREATED MORE JOBS IN THE FIRST NINE MONTHS OF THIS YEAR THAN IN THE FOUR YEARS OF GEORGE BUSH'S TERM THE 156000 INCREASE IN NONFARM PAYROLLS PARTICULARLY ENCOURAGING IN LIGHT OF THE DECLINE OF 41000 REPORTED IN AUGUST IS CLOSE TO THE MONTHLY AVERAGE SO FAR THIS YEAR FACTORY PAYROLLS SLIPPED A FURTHER 18000 TO 177 MILLION ALTHOUGH OVERALL EMPLOYMENT HAS GROWN 24 MILLION TO 1105 MILLION SINCE BOTTOMING OUT IN FEBRUARY 1992 MANUFACTURING PAYROLLS HAVE DROPPED 455000 BUSY BARS AND RESTAURANTS IN THE SERVICE SECTOR LOCALGOVERNMENT PAYROLLS ROSE 54000 AN INCREASE SO LARGE THAT SOME ANALYSTS DESCRIBED IT AS A STATISTICAL FLUKE RETAILERS ADDED 41000 HIRING WAS PARTICULARLY STRONG AT BARS AND RESTAURANTS THE TRANSPORTATION AND PUBLICUTILITIES SECTOR ADDED JOBS FOR THE FIRST TIME IN SIX MONTHS BUT THE TEMPORARYHELP BUSINESS A MAJOR SOURCE OF JOBS FOR THE PAST TWO YEARS DIDN'T ADD ANY IN SEPTEMBER THE NEW NUMBERS RESOLVE CONFUSION GENERATED IN AUGUST WHEN THE GOVERNMENT'S SURVEY OF HOUSEHOLDS USED TO CALCULATE THE UNEMPLOYMENT RATE FOUND A BIG INCREASE IN EMPLOYED PEOPLE WHILE ITS SURVEY OF EMPLOYERS RECORDED A DECLINE THE JOB TALLY IN THE SEPTEMBER HOUSEHOLD SURVEY DROPPED WHILE THE ONE IN THE EMPLOYER SURVEY INCREASED OVER THE TWO MONTHS BOTH SURVEYS NOW DESCRIBE A SIMILAR TREND THE LABOR DEPARTMENT ALSO SAID 1750000 PEOPLE HAVE BEEN UNEMPLOYED FOR MORE THAN SIX MONTHS A NUMBER THAT HASN'T BUDGED IN THE PAST SIX MONTHS LABOR SECRETARY ROBERT REICH SAID THIS UNDERSCORES THE URGENT NEED TO RENEW A FEDERAL PROGRAM THAT PROVIDES JOBLESS PAY TO THOSE WHO HAVE EXHAUSTED STATE BENEFITS WHICH GENERALLY LAST ONLY SIX MONTHS THE PROGRAM INITIATED IN NOVEMBER 1991 LAPSED OCT 2 PRESIDENT CLINTON FAVORS AN EXTENSION BUT CONGRESS HASN'T AGREED ON A WAY TO PAY FOR IT MR REICH SAID 50000 WORKERS A WEEK USE UP THEIR REGULAR STATE BENEFITS AVERAGE HOURLY WAGES OF PRODUCTION AND NONSUPERVISORY WORKERS WERE FLAT AT 1086 IN SEPTEMBER ANOTHER SIGN THAT INFLATION ISN'T MUCH OF A CONCERN NOW OVER THE PAST YEAR HOURLY WAGES HAVE RISEN ONLY 22 LESS THAN THE OVERALL INFLATION RATE FACTORY HOURLY WAGES EXCLUDING OVERTIME ROSE 06 IN SEPTEMBER BUT ARE UP ONLY 24 OVER THE PAST YEAR HERE ARE EXCERPTS FROM THE LABOR DEPARTMENT'S EMPLOYMENT REPORT THE FIGURES ARE SEASONALLY ADJUSTED 9310110119 931011 WHO'S NEWS PALL CORP PALL CORP EAST HILLS NY ERIC KRASNOFF 41 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS FILTER AND FLUID CLARIFICATION PRODUCT COMPANY MR KRASNOFF WHO HAD BEEN ONE OF THREE EXECUTIVE VICE PRESIDENTS AS PRESIDENT SUCCEEDS MAURICE G HARDY 63 WHO REMAINS CHAIRMAN MR HARDY WHO HAS CANCER SAID HE INTENDS TO RETIRE AS CHIEF EXECUTIVE OFFICER BY THE AGE OF 65 MR HARDY SAID THE APPOINTMENT REFLECTS A SUCCESSION PLAN THAT HAS BEEN IN PROGRESS FOR SOME TIME ALTHOUGH HIS RETIREMENT DATE HASN'T BEEN ESTABLISHED WE ARE WELL PREPARED FOR IT HE SAID MR KRASNOFF HAS BEEN IN CHARGE OF PALL'S HOSPITAL SUPPLY BUSINESS AND MORE RECENTLY RAN RESEARCH AND DEVELOPMENT AS WELL AS HOLDING RESPONSIBILITY FOR MARKETING AND SALES OF HEALTHCARE AND FLUID PROCESSING BUSINESSES PALL HAD SALES OF 687 MILLION FOR THE FISCAL ENDED JULY 31 9310110118 931011 GERMAN TRADE SURPLUS NARROWED 41 IN JULY EXPORTS DECLINED 89 SPECIAL TO THE WALL STREET JOURNAL WIESBADEN GERMANY'S JULY TRADE SURPLUS NARROWED 41 TO THREE BILLION MARKS 185 BILLION FROM MAY'S REVISED SURPLUS OF 51 BILLION MARKS THE FEDERAL STATISTICS OFFICE SAID THE CURRENT ACCOUNT DEFICIT WIDENED TO 85 BILLION MARKS FROM A REVISED DEFICIT OF 12 BILLION MARKS IN MAY IT SAID UNLIKE MANY GERMAN STATISTICS THAT REPORT DATA SEPARATELY FOR EASTERN AND WESTERN REGIONS OF GERMANY TRADE FIGURES ARE CONSOLIDATED IN JULY 459 BILLION MARKS IN GOODS WERE EXPORTED A DECREASE OF 89 FROM THE PREVIOUS MONTH THE STATISTICS OFFICE SAID IMPORTS AMOUNTED TO 429 BILLION MARKS A DROP OF 27 FROM MAY THE DECLINES WERE SHARPEST WITHIN THE EUROPEAN COMMUNITY THE OFFICE SAID IN GERMANY'S TRADE WITH NONEC COUNTRIES ITS EXPORTS DECREASED BY 65 WHILE IMPORTS ROSE BY 14 9310110117 931011 MOVIES TRISTAR TAKES A RISK WITH AIDS DRAMA BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD IF CRITICS CALL TRISTAR PICTURES' PHILADELPHIA AN IMPORTANT FILM THE STUDIO'S EXECUTIVES MAY CRINGE THE WORDS THEY WANT TO HEAR HUGELY ENTERTAINING THE DIFFERENCE BETWEEN ENTERTAINING AND IMPORTANT CAN BE TENS OF MILLIONS OF DOLLARS AT THE BOX OFFICE WITH MORE THAN 25 MILLION ON THE LINE IN PRODUCTION COSTS ALONE TRISTAR'S TRICK WILL BE TO CONVINCE MOVIEGOERS THAT PHILADELPHIA AN ADULT DRAMA ABOUT A GAY MAN DYING OF AIDS ISN'T AS MUCH OF A DEPRESSING PROSPECT AS IT MIGHT SEEM ALTHOUGH PHILADELPHIA ISN'T OPENING UNTIL LATE THIS YEAR AS THE FIRST MAJORSTUDIO MOVIE ABOUT AIDS IT IS EXPECTED TO BE ONE OF THE MOST TALKEDABOUT PICTURES IN RECENT YEARS IN PHILADELPHIA TOM HANKS STARS AS A LAWYER WHO IS FIRED FROM A PHILADELPHIA LAW FIRM ALLEGEDLY BECAUSE HE HAS AIDS HE CONVINCES DENZEL WASHINGTON WHO PLAYS A LOWRENT INITIALLY HOMOPHOBIC LAWYER TO REPRESENT HIM IN A LEGAL BATTLE AGAINST THE FIRM DIRECTED BY SILENCE OF THE LAMBS DIRECTOR JONATHAN DEMME THE FILM ALSO STARS JASON ROBARDS AND JOANNE WOODWARD WE'RE GOING AT IT WITH A GREAT STORY AN ACADEMY AWARDWINNING FILMMAKER TWO TERRIFIC STARS A MAGNIFICENT ENSEMBLE OF ACTORS AND A LOT OF PASSION SAYS MARC PLATT PRESIDENT OF TRISTAR A UNIT OF SONY CORP DESPITE THAT THE MOVIE MAY BE A HARD SELL AUDIENCES HAVE MIXED FEELINGS ABOUT MOVIES AND DISEASE LOVE STORY AND TERMS OF ENDEARMENT WERE HITS BUT LORENZO'S OIL LAST YEAR'S FILM ABOUT A RARE CHILDREN'S DISEASE THAT GOT SUSAN SARANDON AN OSCAR NOMINATION FOR BEST ACTRESS WAS A FLOP PHILADELPHIA HAS AN ADDED BURDEN ITS HERO IS GAY THE PREVIEWS OF PHILADELPHIA THAT BEGAN PLAYING IN SOME THEATERS THIS PAST WEEKEND HINT THAT TRISTAR PLANS TO PROMOTE THE FILM DIRECTLY BUT CAREFULLY THE ACTORS SAY THE WORD AIDS SIX TIMES IN THE THREEMINUTE TRAILER BUT SAY THE WORD GAY ONLY ONCE THE ACTOR WHO PLAYS THE HERO'S LOVER ANTONIO BANDERAS IS BARELY SHOWN THE MAKEUP ON MR HANKS HOWEVER CLEARLY SHOWS HIM APPEARING TO GROW INCREASINGLY SICK THE FILM WILL OPEN IN NEW YORK AND LOS ANGELES ON DEC 27 TO QUALIFY FOR CONSIDERATION FOR NEXT YEAR'S ACADEMY AWARDS TRISTAR HOPES THE GAY COMMUNITY WILL SUPPORT PHILADELPHIA BUT IT WON'T BE SURPRISED IF THE STAUNCHEST AIDS ACTIVISTS HAVE QUIBBLES THE MOVIE'S POSTER DOESN'T MENTION AIDS AND FEATURES A PHOTOGRAPH OF A HEALTHYLOOKING MR HANKS THE ONLY OTHER SIGNIFICANT FEATURE FILM ABOUT AIDS THE ARTHOUSE MOVIE LONGTIME COMPANION WAS PROMOTED IN 1990 WITH A MORE DARING POSTER THAT SHOWED TWO MEN IN AN EMBRACE TRISTAR COUNTERS THAT ITS MOVIE ISN'T ABOUT GAY LOVERS COPING WITH AIDS PHILADELPHIA IS ABOUT THE RELATIONSHIP BETWEEN THE FIRED GAY ATTORNEY AND HIS LAWYER A MAN WHO HAS TO EXAMINE HIS OWN PREJUDICES BEFORE AGREEING TO TAKE ON THE ASSIGNMENT IN ONE SCENE MR WASHINGTON ASKS HIS WIFE WOULD YOU TAKE ON A CLIENT IF YOU WERE CONSTANTLY THINKING I DON'T WANT THIS PERSON TO TOUCH ME' I DON'T WANT HIM TO EVEN BREATHE ON ME INDUSTRY EXECUTIVES BELIEVE TRISTAR IS TAKING THE RIGHT APPROACH BY HIGHLIGHTING ITS TWO STARS AND THE COURTROOM DRAMA WITH AIDS AS A BACKDROP YOU HAVE TO TELL PEOPLE THEY'RE GOING TO HAVE AN EMOTIONAL EXPERIENCE NOT THAT THEY'RE GOING TO BE EDUCATED OR INFORMED SAYS TOM ROTHMAN PRESIDENT OF PRODUCTION AT SAMUEL GOLDWYN CO WHICH RELEASED LONGTIME COMPANION THAT FILM GROSSED ABOUT 5 MILLION AT THE BOX OFFICE WHICH IN VIEW OF ITS LOW BUDGET CATEGORIZED IT AS A SUCCESS UNLIKE GOLDWYN'S CAMPAIGN TRISTAR ISN'T PLANNING A SEPARATE MARKETING CAMPAIGN TARGETING GAY AUDIENCES THIS ISN'T A GAY MOVIE ONE EXECUTIVE AT THE STUDIO SAYS IT'S A MOVIE FOR EVERYONE TRISTAR IS PLANNING A PREMIERE TO BENEFIT AN AIDS CHARITY HOWEVER SOME GAY ACTIVISTS WHO HAVE CRITICIZED HOLLYWOOD FOR NOT PUTTING AIDS ON THE BIG SCREEN HOPE THAT PHILADELPHIA IS A HIT THIS WAS A LONG TIME COMING BUT THIS IS A MAJOR FIRST STEP IN THE RIGHT DIRECTION SAYS LEE WERBEL EXECUTIVE DIRECTOR OF THE LOS ANGELES CHAPTER OF THE GAY AND LESBIAN ALLIANCE AGAINST DEFAMATION A MEDIAWATCHDOG GROUP AT LEAST AT THE START OF ITS RUN ADULT WOMEN WILL PROBABLY BE MOST RECEPTIVE TO PHILADELPHIA INDUSTRY EXECUTIVES REASON WITH YOUNG MEN BEING THE HARDEST SELL BUT TRISTAR PLANS TO AGGRESSIVELY COURT THEM TOO IT IS CURRENTLY PUTTING TOGETHER WHAT IT HOPES WILL BE A HOT SOUNDTRACK ALBUM THAT WILL FEATURE NEW SONGS FROM BRUCE SPRINGSTEEN AND NEIL YOUNG BECAUSE AIDS HAS PERMEATED EVERY SEGMENT OF SOCIETY I THINK PEOPLE ARE ALMOST ANXIOUS TO SEE THIS TRISTAR'S MR PLATT SAYS THEY'RE NOT AS AFRAID AS THEY ONCE WERE 9310110116 931011 MARKETING & MEDIA HEWLETTPACKARD TIME WARNER PLAN NEW ROLE FOR TV PRINTOUTS FROM CABLE BOXES IS CONSIDERED STEP ON ROAD TO INFORMATION HIGHWAY' BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL HEWLETTPACKARD CO AND TIME WARNER INC PLAN TO GIVE THE LIVINGROOM TELEVISION SET ANOTHER TALENT THE ABILITY TO PRINT OUT SALES COUPONS ADVERTISEMENTS MAGAZINE ARTICLES AND COLOR STILLS OF TV SHOWS HP AND TIME WARNER HAVE AGREED TO DEVELOP JOINTLY TECHNOLOGIES THAT ALLOW USERS OF INTERACTIVETV SERVICES TO PLUG COLOR PRINTERS INTO THEIR CABLETV BOXES ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANIES' PLANS UNDER THE AGREEMENT WHICH THE COMPANIES PLAN TO ANNOUNCE TODAY TIME WARNER WILL ALSO OFFER HPMADE COLOR INKJET PRINTERS TO 4000 HOUSEHOLDS THAT ARE PART OF A TIME WARNER EXPERIMENT IN ORLANDO FLA TO PROVIDE CONSUMERS WITH INTERACTIVETV SERVICES THE DEAL ADDS TO A LONG LIST OF ALLIANCES THAT CABLE TV COMPANIES ARE FORMING WITH COMPUTER COMPANIES ENTERTAINMENT CONCERNS AND OTHER PLAYERS IN THE RUSH TO CREATE ELECTRONIC INFORMATION HIGHWAYS TIME WARNER HAS ALREADY ANNOUNCED A NUMBER OF DEALS TO FLESH OUT ITS ORLANDO PROJECT SLATED TO BEGIN APRIL 1994 SILICON GRAPHICS INC AND SCIENTIFICATLANTA INC FOR EXAMPLE WILL MAKE THE COMPUTERIZED SETTOP BOXES THAT WILL DELIVER A FULLSERVICE NETWORK THAT WILL PROVIDE THE ORLANDO HOMES WITH MOVIES ON DEMAND HOME SHOPPING AND OTHER INFORMATION AND ENTERTAINMENT SERVICES THE DEAL FITS INTO HP'S RECENT STRATEGY OF PUSHING INTO HIGHVOLUME CONSUMER MARKETS WITH TECHNLOGIES SUCH AS COLOR PRINTING THAT IT HAS HONED IN THE PERSONALCOMPUTER MARKET FOR TIME WARNER PLUGGING A PRINTER INTO CABLETV BOXES GIVES A VALUABLE MEANS OF PROVIDING CONSUMERS WITH SOME OF ITS TRADITIONAL PRODUCTS MAGAZINE ARTICLES FOR EXAMPLE IN A FAMILIAR PALPABLE FORM AN INTERACTIVECABLE SUBSCRIBER COULD PRINT OUT SAY MONEY MAGAZINE'S LATEST LIST OF TOP COLLEGES OR ITS RUNDOWN ON THE BEST MUTUAL FUNDS HP AND TIME WARNER OFFICIALS SAID THEY HAVE NO COMMENT BUT PEOPLE FAMILIAR WITH THE DEAL A NONBINDING MEMORANDUM OF UNDERSTANDING SAID THE COMPANIES WILL DEVELOP A SYSTEM THAT ALSO ALLOWS SUBSCRIBERS TO PRINT OUT PLAINPAPER COPIES OF COLOR TV IMAGES NEWS BULLETINS MAPS INVOICES BROCHURES FROM AUTO DEALERS MONEYOFF COUPONS FROM THE LOCAL PIZZA STORE AND OTHER SUCH ITEMS THAT ARE LIKELY TO POP UP ON USERS' TV SCREENS AS THEY SEND ELECTRONIC COMMANDS OVER THE TWOWAY CABLE SYSTEM THE TECHNOLOGY FOR THE NEW PRINTING SERVICE WILL BE A SPINOFF OF A NEW HP PRODUCT WHICH HP PLANS TO UNVEIL SEPARATELY TODAY THAT IS AIMED AT PROFESSIONAL BROADCAST ENGINEERS CALLED THE VIDJET PRO THE NEW VIDEORECORDERSIZED HP DEVICE WILL LIST FOR 3500 AND UP AND ALLOW USERS TO CAPTURE VIDEO INFORMATION ON PAPER OR TRANSPARENCIES USING MOST HP PRINTERS 9310110115 931011 WHAT'S NEWS WORLDWIDE MORE US TROOPS ARRIVED IN SOMALIA AS AIDID URGED A CEASEFIRE FEARS OF A RENEWED US ASSAULT ON THE CLAN LEADER'S STRONGHOLDS IN SOUTHERN MOGADISHU APPARENTLY PROMPTED HIM TO PUSH FOR A CEASEFIRE AS US MILITARY REINFORCEMENTS AND HEAVY ARMOR WERE ARRIVING ON FRIDAY LEADERS OF AIDID'S CLAN MET WITH UN OFFICIALS WHO THEN DECIDED TO POSTPONE A WEEKEND ATTACK AGAINST AIDID THE US GOVERNMENT MEANWHILE HAS WELCOMED THE UNILATERAL CEASEFIRE DECLARATION BY AIDID US ENVOY OAKLEY ARRIVED IN SOMALIA TO START WORKING TOWARD A POLITICAL SOLUTION AND A NEGOTIATED END TO THE UNDECLARED WAR AGAINST AIDID SOCIALISTS RETURNED TO POWER IN GREECE AFTER FOUR YEARS IN OPPOSITION WITH EARLY PARLIAMENTARY ELECTION RESULTS SHOWING VOTERS REJECTING THE CONSERVATIVE GOVERNMENT AND ITS AUSTERITY MEASURES PREMIER MITSOTAKIS CONCEDED DEFEAT TO FORMER PREMIER PAPANDREOU WHOSE PANHELLENIC SOCIALIST MOVEMENT WILL FORM A GOVERNMENT SERBS HALTED TRUCKS CARRYING FOOD AND MEDICINE FROM REACHING TWO NORTH BOSNIAN TOWNS WHERE TENS OF THOUSANDS OF MUSLIMS HAVE BEEN TRAPPED FOR MONTHS UN OFFICIALS SAID SEPARATELY THE UN RESUMED MEDICAL EVACUATIONS FROM SARAJEVO AFTER A THREEDAY SUSPENSION BEGINNING WITH AN INJURED BOSNIAN MILITIA LEADER PRESIDENT YELTSIN EXTENDED A STATE OF EMERGENCY IN MOSCOW FOR EIGHT DAYS AND SET UP ARMY CHECKPOINTS ON ROADS LEADING TO THE CAPITAL ON SATURDAY HE ORDERED A COMMISSION TO WORK OUT PLANS FOR ELECTIONS OF NEW LOCAL COUNCILS IN 66 REGIONS US INVESTORS WERE TOLD BY THE CHAIRMAN OF RUSSIA'S STATE INVESTMENT CORPORATION THAT THIS MONTH'S OUSTER OF THE REBELLIOUS RUSSIAN PARLIAMENT SHOULD MAKE IT EASIER FOR AMERICANS TO DO BUSINESS THERE MEXICO SENT TWO LETTERS OF PROTEST TO THE US ONE CONCERNING STEPPEDUP BORDER PATROLS AND THE OTHER OBJECTING TO REMARKS MADE BY A STATE DEPARTMENT AIDE ON MEXICO'S HUMANRIGHTS RECORD THE LETTERS ARE AN INDICATION OF HOW USMEXICAN RELATIONS ARE BECOMING TENSE OVER A FREETRADE ACCORD COAST GUARD OFFICIALS BEGAN ALLOWING OCEANGOING TRAFFIC TO USE THE HOUSTON SHIP CHANNEL NEARLY 24 HOURS AFTER AN EXPLOSION ABOARD AN EMPTY CHEMICAL TANKER ON SATURDAY HAD CLOSED THE NATION'S THIRDLARGEST PORT TWO PEOPLE WERE KILLED IN THE BLAST POSSIBLY SET OFF BY A WELDING TORCH AND A THIRD WAS MISSING THE FDA HAS PROPOSED REQUIRING THAT FOLIC ACID BE ADDED TO ENRICHED GRAIN PRODUCTS IN AN ATTEMPT TO REDUCE BIRTH DEFECTS THE AGENCY WOULD ALSO ALLOW PRODUCTS RICH IN FOLIC ACID WHICH IS A B VITAMIN TO HAVE LABELS NOTING THE BENEFICIAL EFFECTS TO WOMEN OF CHILDBEARING AGE A RADICAL PALESTINIAN GROUP SAID ITS GUERRILLAS CARRIED OUT AN ATTACK SATURDAY IN WHICH AT LEAST TWO ISRAELI HIKERS WERE KILLED IN THE OCCUPIED WEST BANK NEAR JERICHO THE GROUP THE POPULAR FRONT FOR THE LIBERATION OF PALESTINE OPPOSES THE PLO'S RECENT PEACE ACCORD WITH ISRAEL ISRAEL IS TAKING STEPS TO ENSURE THAT IT WON'T BE CUT OUT OF THE BUSINESS OF BUILDING UP THE PALESTINIAN ECONOMY ISRAEL'S HOUSING MINISTER IS FLYING TO WASHINGTON THIS WEEK TO DISCUSS ISRAELI CONCERNS ABOUT GETTING A FAIR SHARE OF THE DEVELOPMENT FUNDS A FERRY CAPSIZED OFF SOUTH KOREA'S WEST COAST AND POLICE SAID MORE THAN 120 PEOPLE WERE DEAD OR MISSING THE BOAT PACKED WITH OVER 200 VACATIONERS AND FISHERMEN OVERTURNED AND SANK IN ROUGH SEAS AT LEAST 74 PEOPLE WERE RESCUED ACCORDING TO OFFICIALS ONE OF THE SURVIVORS SAID THE 110TON FERRY WENT DOWN IN LESS THAN 30 SECONDS THE GEORGIAN MILITARY ORDERED INSURGENTS HOLDING THE BLACK SEA PORT OF POTI IN WESTERN GEORGIA TO WITHDRAW BY TODAY OR FACE A MAJOR OFFENSIVE THE ULTIMATUM CAME AS THE CONFLICT BETWEEN REBELS FIGHTING TO REINSTATE OUSTED PRESIDENT GAMSAKHURDIA AND SOLDIERS LOYAL TO THE CENTRAL GOVERNMENT ENTERED ITS SECOND WEEK LAWYERS FOR TWO LIBYANS REJECTED DEMANDS THAT THEIR CLIENTS STAND TRIAL IN SCOTLAND OR THE US IN CONNECTION WITH THE BOMBING OF PAN AM FLIGHT 103 OVER LOCKERBIE SCOTLAND FIVE YEARS AGO THE LAWYERS TERMED UNACCEPTABLE A LIBYAN GOVERNMENT STATEMENT EARLIER THIS MONTH ENCOURAGING THE MEN TO STAND TRIAL 9310110114 931011 PAPER INDUSTRY'S THIRD QUARTER REMAINED SOFT BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL THE PAPER AND FORESTPRODUCTS INDUSTRY CONTINUES TO STRUGGLE PRICES REMAIN LOW FOR PAPER AND PULP PRODUCTS EVEN WOOD PRICES THE INDUSTRY'S NOTABLE BRIGHT SPOT THIS YEAR WERE LOWER ON AVERAGE IN THE THIRD QUARTER THAN IN THE SECOND THOUGH THEY HAVE RALLIED SINCE EARLY AUGUST COMPANIES BEGIN REPORTING THIRDQUARTER RESULTS THIS WEEK AND FOR THE MOST PART THE NUMBERS ARE EXPECTED TO MARK A CONTINUING LONG CYCLICAL DOWNTURN JUST WHEN YOU THINK THE INDUSTRY'S FOUND A BOTTOM IT HASN'T SAID MARK DIVERIO AN ANALYST WITH UBS SECURITIES INC YOU'RE LOOKING AT A TOUGH GO HERE IN THE NEXT COUPLE OF QUARTERS LAST SPRING'S NEWSPRINTPRICE INCREASE IN EASTERN NORTH AMERICA HAS UNRAVELED PULP MARKETS REMAIN DEPRESSED CORRUGATEDBOX PRICES HAVE SOFTENED MAJOR EXPORT MARKETS ARE GLUTTED JAPAN'S OVERSUPPLIED LUMBER MARKET CRIMPED WEYERHAEUSER CO'S THIRDQUARTER PERFORMANCE A COMPANY SPOKESMAN SAID LOG EXPORT VOLUMES DROPPED SHARPLY FROM THE SECOND QUARTER AND THE COMPANY'S NEWSPRINT PULP AND CORRUGATEDBOX OPERATIONS HAVE BEEN AFFECTED BY WEAK NORTH AMERICAN MARKETS WEYERHAEUSER IS EXPECTED TO REPORT EARNINGS BEFORE NONRECURRING ITEMS WELL BELOW THE SECOND QUARTER'S 71 CENTS A SHARE ANALYSTS ALSO EXPECT IT TO BE SLIGHTLY BELOW ITS YEAREARLIER 45 CENTS A SHARE ABITIBIPRICE INC NORTH AMERICA'S BIGGEST PRODUCER OF NEWSPRINT IS EXPECTED TO REPORT A THIRDQUARTER LOSS LARGER THAN ITS SECONDQUARTER PERSHARE LOSS OF 27 CANADIAN CENTS 20 US CENTS EXCLUDING NONRECURRING ITEMS THE TORONTO COMPANY'S YEAREARLIER PERSHARE LOSS ON A COMPARABLE BASIS WAS 20 CANADIAN CENTS NEWSPRINT PRICES SUFFERED FROM THE SLOW ECONOMIC RECOVERY IN NORTH AMERICA DURING THE THIRD QUARTER ANOTHER FACTOR PUBLISHERS HAVE BEEN WORKING OFF INVENTORIES ACCUMULATED EARLIER THIS YEAR WHEN THERE WERE FEARS OF SUMMER LABOR DISRUPTIONS IN CANADA AS DID SEVERAL OTHER NEWSPRINT MAKERS ABITIBIPRICE HAD TEMPORARY MILL SHUTDOWNS IN THE THIRD QUARTER CHAMPION INTERNATIONAL CORP IS EXPECTED TO REPORT A THIRDQUARTER LOSS OF 40 CENTS TO 45 CENTS A SHARE EXCLUDING NONRECURRING ITEMS THAT COMPARES WITH A LOSS OF 31 CENTS A SHARE IN THE SECOND QUARTER AND A LOSS OF 25 CENTS A SHARE IN THE YEAREARLIER PERIOD PRICE INCREASES FOR UNCOATED WHITE PAPER WERE OFFSET BY WEAKER WOOD PRICES A SPOKESMAN SAID WHILE THE PULP MARKET REMAINED DEPRESSED AN OFFICIAL AT CONSOLIDATED PAPERS INC A MAJOR MAKER OF COATED PAPER SAID A JULY PRICE INCREASE FOR LIGHTWEIGHT COATED GROUNDWOOD PAPER HAS HELD BUT A DECLINE IN ADVERTISING PAGES AT NATIONAL MAGAZINES AS WELL AS IMPORTS FROM FINLAND CONTRIBUTED TO A SOFTER MARKET IN THE THIRD QUARTER CONSOLIDATED TOOK SOME CONSIDERABLE DOWNTIME IN PRODUCTION OF LIGHTWEIGHT COATED GROUNDWOOD PAPER IN THE QUARTER HE SAID ANALYSTS EXPECT CONSOLIDATED TO REPORT THIRDQUARTER PROFIT BEFORE NONRECURRING ITEMS OF 25 CENTS TO 35 CENTS A SHARE THAT COMPARES WITH SECONDQUARTER PERSHARE PROFIT OF 58 CENTS AND YEAREARLIER PERSHARE PROFIT OF 25 CENTS ANALYSTS EXPECT BOISE CASCADE CORP TO POST A THIRDQUARTER LOSS OF 80 CENTS TO 90 CENTS A SHARE THE COMPANY'S SECONDQUARTER LOSS WAS 85 CENTS A SHARE AND THE YEAREARLIER PERSHARE LOSS WAS 113 A BOISE SPOKESMAN SAID THE COMPANY TRIMMED ITS LOSSES IN THE PAPER SECTOR BY CUTTING COSTS HOWEVER PRICES FOR LUMBER AND PLYWOOD DECLINED IN THE THIRD PERIOD FROM THE SECOND REDUCING INCOME FROM THOSE PRODUCTS MODESTLY UNION CAMP CORP IS EXPECTED TO REPORT A THIRDQUARTER PROFIT OF 26 CENTS A SHARE DOWN FROM A YEAREARLIER 30 CENTS A SHARE EXCLUDING NONRECURRING ITEMS ANALYSTS EXPECT INTERNATIONAL PAPER CO TO REPORT A THIRDQUARTER PROFIT OF 58 CENTS A SHARE EXCLUDING NONRECURRING ITEMS INTERNATIONAL'S SECONDQUARTER PERSHARE PROFIT WAS 62 CENTS YEAREARLIER THIRDQUARTER PROFIT WAS 81 CENTS A SHARE 9310110113 931011 HOECHST UNIT PLANS TO ACQUIRE STAKE IN COPLEY DEAL'S PRICE OF 546 MILLION FOR MAJORITY INTEREST IS SEEN AS UNUSUALLY HIGH BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL SOMERVILLE NJ IN THE LATEST CONSOLIDATION IN THE HEALTHCARE INDUSTRY HOECHST CELANESE CORP SAID IT AGREED TO ACQUIRE A MAJORITY STAKE IN COPLEY PHARMACEUTICAL INC A GENERIC AND OVERTHECOUNTER DRUG MAKER FOR 546 MILLION THE TRANSACTION BRINGS TOGETHER TWO UNREMARKABLE DRUG COMPANIES STRUGGLING TO COPE IN AN INDUSTRY ROILED BY THE SPECTER OF HEALTHCARE REFORM AND THE EMERGENCE OF POWERFUL MANAGEDCARE BUYERS WHAT IS REMARKABLE ABOUT THE ACCORD IS ITS PRICE HOECHST CELANESE IS PAYING A HUGE PREMIUM FOR THE 51 STAKE IN CANTON MASSBASED COPLEY WHICH HAD SALES OF JUST 52 MILLION AND NET INCOME OF 123 MILLION IN THE FISCAL YEAR ENDED JAN 31 THE PRICE REFLECTS HOECHST CELANESE'S EXPECTATION OF COPLEY'S SALES GROWTH A HOECHST SPOKESWOMAN SAID HOECHST CELANESE IS A UNIT OF HOECHST AG THE GERMAN CHEMICAL COMPANY THIS IS AN EXTRAORDINARY AMOUNT TO PAY FOR THE COMPANY SAID RONALD NORDMANN AN ANALYST AT PAINEWEBBER THE OFFER IS THE EQUIVALENT OF ABOUT 20 TIMES COPLEY SALES FAR EXCEEDING THE USUAL THREE TO FOUR TIMES SALES FOR SUCH TRANSACTIONS HE SAID ADDING THAT GENERIC DRUG STOCKS WOULD RISE SHARPLY AS A RESULT OF THE ANNOUNCEMENT HOWEVER THE PRICE DOESN'T SEEM AS HIGH WHEN COMPARED WITH COPLEY'S STOCK PRICE THE COMPANIES SAID ON SATURDAY THAT UNDER THEIR AGREEMENT HOECHST CELANESE WILL LAUNCH A 55ASHARE TENDER OFFER FOR THE 51 COPLEY STAKE IN NATIONAL OVERTHECOUNTER TRADING FRIDAY COPLEY SHARES CLOSED AT 4975 DOWN 25 CENTS COPLEY HAS A STRONG APPROVAL TRACK RECORD AT THE FOOD AND DRUG ADMINISTRATION THE HOECHST CELANESE SPOKESWOMAN SAID COPLEY HAS RECEIVED 23 APPROVALS FOR NEW PRODUCTS IN THE PAST 23 MONTHS BRINGING ITS TOTAL PRODUCT PORTFOLIO TO 89 GENERIC PRESCRIPTION AND OVERTHECOUNTER DRUGS ACCORDING TO A COPLEY SPOKESWOMAN THIS WAS SUCH A TREMENDOUS OPPORTUNITY A PREMIUM PRICE AND SUPPLY AGREEMENT IT WAS A DEAL WE HAD TO TAKE SAYS JANE HIRSH 51 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF COPLEY MS HIRSH WHO FOUNDED THE COMPANY IN 1972 CONTROLS 31 OF COPLEY SHARES AND OTHER FAMILY MEMBERS OWN 184 MS HIRSH WILL REMAIN IN HER POSITIONS WITH THE COMPANY BRUCE BENNETT HOECHST CELANESE VICE PRESIDENT AND GENERAL MANAGER OF BULK PHARMACEUTICALS SAID HOECHST CELANESE TALKED WITH SEVERAL GENERIC DRUG COMPANIES BUT SELECTED COPLEY BECAUSE OF ITS GROWTH POTENTIAL COPLEY'S SALES GREW 80 IN THE LAST FISCAL YEAR AND ARE EXPECTED TO RISE 73 TO 90 MILLION THIS FISCAL YEAR HE SAID ADDING HOECHST CELANESE EXPECTS COPLEY TO MAINTAIN THAT GROWTH RATE FOR SEVERAL YEARS HELPING IT GROW WILL BE THE SYNERGIES FROM WORKING CLOSELY WITH HOECHST CELANESE WHICH CAN HELP IT OBTAIN THE BULK CHEMICAL SUPPLIES THAT ARE CRUCIAL TO A GENERIC COMPANY'S COMPETITIVENESS HE ADDED THE TRANSACTION BOLSTERS THE PRODUCT LINE OF HOECHST CELANESE'S PHARMACEUTICAL SUBSIDIARY HOECHSTROUSSEL PHARMACEUTICALS INC A SMALL PLAYER WITH LIMITED PRODUCT OFFERINGS COMPANIES LIKE HOECHSTROUSSEL ARE AT A DISADVANTAGE IN NEGOTIATING WITH BIG MANAGEDCARE BUYERS THAT INCREASINGLY FAVOR BUNDLED PACKAGES OF BRANDED AND GENERIC DRUGS DEEPENING ITS PRODUCT LINE TO BECOME MORE ATTRACTIVE TO MANAGEDCARE BUYERS IS A REASON FOR THE COPLEY DEAL MR BENNETT SAID MANY DRUG COMPANIES LARGE AND SMALL ARE MOVING INTO THE GENERIC DRUG BUSINESS EITHER THROUGH ACQUISITIONS OR STARTING THEIR OWN UNITS MARION MERRELL DOW INC AGREED EARLIER THIS YEAR TO ACQUIRE THE GENERIC DRUG BUSINESS OF RUGBYDARBY GROUP COS GENERIC DRUGS ARE ALREADY DEMANDED BY COSTCONSCIOUS MANAGEDCARE BUYERS AND PRESIDENT CLINTON'S HEALTHCARE REFORM PROPOSALS ALSO STRONGLY FAVOR THE USE OF GENERIC DRUGS WHERE AVAILABLE AND GENERIC DRUGS PRESENT ONE OF THE GREATEST OPPORTUNITIES AND THREATS TO THE PHARMACEUTICAL INDUSTRY A HUGE WAVE OF AN ESTIMATED 20 BILLION WORTH OF PRESCRIPTION DRUGS ARE LOSING PATENT PROTECTION THROUGH THE END OF THE DECADE HOECHSTROUSSEL IS FACING THE LOSS OF PATENT PROTECTION OF ITS BIGGEST DRUGS OVER THE NEXT FEW YEARS IF THE TRANSACTION GOES THROUGH IT CAN DEVELOP AND SELL GENERIC VERSIONS THROUGH COPLEY HOECHST CELANESE WILL ALSO WORK WITH COPLEY TO SECURE RAW MATERIALS FOR GENERIC VERSIONS OF OTHER COMPANIES' DRUGS MR BENNETT SAID OUR STRATEGY IS TO GROW IN THE PHARMACEUTICAL AREA A HOECHST CELANESE SPOKESWOMAN SAID WE FEEL IN ORDER TO DO THAT WE NEED TO HAVE A PRESENCE IN THE GENERIC DRUG INDUSTRY BECAUSE OF A TREND TOWARD FINDING LOWER COST MEDICATIONS SUCH AS WITH HEALTHCARE REFORM BUT HEMANT SHAH AN INDEPENDENT ANALYST IS SKEPTICAL OF HOECHST CELANESE'S MOVE I BELIEVE GENERIC BUSINESS WILL BE DEAD IN A YEAR OR TWO BECAUSE MORE AND MORE PHARMACEUTICAL COMPANIES WILL MARKET GENERICS OF THEIR OWN DRUGS ONCE THE PRICE UMBRELLA DISAPPEARS THERE'S NO MARKET POINTING TO THE PROPOSED ACQUISITION OF MEDCO CONTAINMENT SERVICES BY MERCK & CO MR SHAH ADDED THAT COMPANIES ARE IN A PANIC OVER THE CHANGES SWEEPING THROUGH HEALTH CARE MOST OF THESE MOVES PROBABLY AREN'T THE RIGHT MOVES HE SAID PHARMACEUTICAL COMPANIES ARE ACTING EMOTIONALLY RATHER THAN RATIONALLY THE COPLEY TRANSACTION IS LIKELY TO CAUSE OTHER GENERIC DRUG COMPANY STOCKS TO JUMP MR NORDMANN SAID SPECULATION THAT GENERIC DRUG COMPANIES ARE ACQUISITION TARGETS HAS ALREADY PUMPED UP SOME STOCKS HE SAID SHARES OF BIG RESEARCHBASED PHARMACEUTICAL COMPANIES SELL FOR 12 TO 15 TIMES EARNINGS BUT GENERIC COMPANIES' SHARES ARE SELLING FOR 30 TO 50 TIMES EARNINGS HE SAID THE COPLEY ACCORD IS THE EQUIVALENT OF 75 TIMES ESTIMATED FISCAL 1994 EARNINGS A COPLEY SPOKESWOMAN SAID COPLEY SELLS GENERIC PRESCRIPTION PRODUCTS IN THE ANTIHISTAMINE CARDIOVASCULAR AND CENTRAL NERVOUS SYSTEM AREAS AMONG OTHERS ITS BIGGESTSELLING OVERTHECOUNTER PRODUCT IS A PRIVATELABEL VERSION OF AN ANTIFUNGAL FOR TREATMENT OF VAGINAL YEAST INFECTIONS HOECHSTROUSSEL'S LARGEST PRODUCTS ARE TRENTAL USED TO HELP BLOOD CIRCULATION AND A DIABETES TREATMENT DIABETA 9310110112 931011 WHO'S NEWS GEICO CORP CHAIRMAN RETIRES FROM BOARD PLANS TO BUY UNITS WASHINGTON GEICO CORP SAID ITS CHAIRMAN WILLIAM B SNYDER DECIDED TO RETIRE A YEAR EARLIER THAN PLANNED AND THAT HE AND OTHERS INCLUDING FORMER GEICO CHAIRMAN JOHN J BYRNE ARE BUYING TWO GEICO BUSINESSES MR SNYDER ALSO RESIGNED FROM THE INSURANCE COMPANY'S BOARD MR SNYDER 64 YEARS OLD IN MAY RELINQUISHED HIS RESPONSIBILITIES AS GEICO'S CHIEF EXECUTIVE HIS DUTIES WERE ASSUMED BY TONY NICELY AS CHIEF EXECUTIVE FOR INSURANCE OPERATIONS AND LOUIS SIMPSON AS CHIEF EXECUTIVE FOR CAPITAL OPERATIONS EDWARD UTLEY BECAME VICE CHAIRMAN A SPOKESMAN SAID A PERMANENT SUCCESSOR AS CHAIRMAN HASN'T BEEN NAMED MR SNYDER MR BYRNE AND OTHERS ARE PURCHASING TWO GEICO BUSINESSES MERASTAR INSURANCE CO OF CHATTANOOGA TENN AND SOUTHERN HERITAGE INSURANCE CO OF ATLANTA TERMS WEREN'T DISCLOSED THE PROPERTY AND CASUALTY COMPANIES HAVE COMBINED PREMIUM REVENUE OF 38 MILLION THE COMPANIES WERE PURCHASED IN 1991 FOR ABOUT 45 MILLION THE SPOKESMAN SAID GEICO ANTICIPATES BREAKING EVEN ON ITS INVESTMENT GEICO SAID THE SALE IS PART OF ITS EFFORT TO FOCUS ON ITS CORE BUSINESS DIRECTRESPONSE PROPERTY AND CASUALTY INSURANCE THE UNITS BEING SOLD SELL INSURANCE THROUGH AGENTS AND TO EMPLOYERS MR SNYDER JOINED GEICO IN 1977 AFTER 22 YEARS AS AN OFFICER AT TRAVELERS INSURANCE CO IN 1981 HE BECAME PRESIDENT OF GEICO AND A DIRECTOR WHEN MR BYRNE WHO IS GENERALLY CREDITED WITH RESCUING THE COMPANY FROM THE BRINK OF BANKRUPTCY RETIRED IN 1985 TO PURSUE OTHER BUSINESS MR SNYDER BECAME CHAIRMAN AND CHIEF EXECUTIVE 9310110111 931011 COMMODITIES ANALYSTS SAY OIL PRICES ARE LIKELY TO RISE FURTHER IF OPEC MAINTAINS ITS NEW PRODUCTION QUOTAS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL WORLD OIL PRICES ARE LIKELY TO RISE FURTHER OVER THE NEXT FEW WEEKS IF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES STICKS TO ITS NEW PRODUCTION QUOTAS THAT AT LEAST IS THE VIEW OF A GROWING NUMBER OF OIL ANALYSTS AND ECONOMISTS SEVERAL DEVELOPMENTS THEY SAY ARE HELPING TO MOVE THE OIL MARKET TOWARD A FRAGILE SUPPLYDEMAND BALANCE AMONG THEM IS THE SEASONAL UPTURN IN DEMAND EXPECTED AS THE PEAKUSE PERIOD OF WINTER NEARS ALSO THEY CITE SUCH POTENTIAL INFLUENCE ON SUPPLIES AS THE POLITICAL TENSION INVOLVING LIBYA AND THE CIVIL UNREST AND ECONOMIC CHAOS IN RUSSIA AND NIGERIA ALL THREE COUNTRIES ARE MAJOR OIL PRODUCERS BUT OPEC GENERALLY IS CONSIDERED TO BE THE CATALYST IN STOPPING THE MONTHSLONG FALL IN PETROLEUM PRICES THE OIL EXPORTERS LAST MONTH SET AN OUTPUT CEILING OF 245 MILLION BARRELS A DAY FOR SIX MONTHS TO CURB OVERPRODUCTION THAT HAD WEAKENED THE MARKET AND PRICES HAVE BEEN FIRMING SINCE THEN THE NEW PRODUCTION QUOTAS FOR THE 12 OPEC NATIONS ARE MORE LIKELY TO BE ADHERED TO BECAUSE THEY ARE MORE REALISTIC THAN THE PREVIOUSLY IGNORED ALLOCATIONS ALSO THE NEW CEILING AS REPORTED EARLIER IMPLIES A CUT OF 200000 BARRELS A DAY IN OPEC'S TOTAL OUTPUT FROM THE SEPTEMBER AVERAGE OF 247 MILLION BARRELS A DAY EVEN BEFORE THE OPEC MEETING HOWEVER MANY OIL ANALYSTS SAID FUNDAMENTAL FACTORS WERE TURNING POSITIVE WITH THE MARKET MOVING TOWARD A FRAGILE SUPPLYDEMAND BALANCE NOW THAT PSYCHOLOGY SEEMS TO HAVE TURNED POSITIVE TOO SAID FEREIDUN FESHARAKI DIRECTOR OF RESOURCE PROGRAMS AT HONOLULU'S EASTWEST CENTER WE EXPECT A SLOW BUT SOLID GROWTH IN THE PRICE OF OIL PETROLEUM PRICES ROSE AGAIN SLIGHTLY FRIDAY CRUDE OIL FOR NOVEMBER DELIVERY SETTLED SIX CENTS HIGHER AT 1855 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE THAT IS NEARLY 1 A BARREL ABOVE THE LATE SEPTEMBER PRICE BEFORE THE OPEC MEETING AND THE NEW YORKBASED NIKKHAH GROUP FORECASTS THAT WEST TEXAS INTERMEDIATE THE US BENCHMARK CRUDE WILL REACH 21 A BARREL BEFORE YEAR END IF LIBYAN OIL EXPORTS ARE CURTAILED BECAUSE OF US AND BRITISH TRADE RESTRICTIONS AND IF CIVIL UNREST GROWS IN RUSSIA AS EXPECTED BUT MUCH STILL DEPENDS ON OPEC THE OIL EXPORTERS MUST YET PROVE THAT THEY HAVE THE DISCIPLINE TO STICK TO THEIR NEW QUOTAS WHAT'S IMPORTANT NOW IS THAT THE MARKET IS LOOKING TOWARD THE FIRST REPORT OF OPEC'S OCTOBER PRODUCTION SAID JOHN SAUCER HOUSTONBASED ENERGY ANALYST WITH SMITH BARNEY SHEARSON FIRST HINTS OF HOW OPEC IS ADHERING TO THE NEW CEILING MAY COME AS SOON AS THIS WEEK BUT MONITORS OF OPEC'S OUTPUT SAID THEY LIKELY WON'T HAVE SIGNIFICANT PROOF OF THE EXPORTERS' PRODUCTION DISCIPLINE FOR OCTOBER OR LACK OF IT UNTIL THE END OF THE MONTH MEANWHILE ANALYSTS SAY THE MARKET IS IN A HONEYMOON PHASE WITH OPEC AS AN EXAMPLE LAST WEEK'S REPORT BY THE INTERNATIONAL ENERGY AGENCY THAT ANNUAL OIL DEMAND WILL DECLINE IN 1993 FOR THE FIRST TIME IN A DECADE HAD LITTLE IMMEDIATE IMPACT ON PRICES THE IEA STILL LOOKS FOR REQUIREMENTS FOR OPEC OIL TO CLIMB OVER THE WINTER MONTHS DESPITE THE LACKLUSTER DEMAND SHOWING FOR THIS YEAR THE IEA FIGURES INDICATE AN IMPLIED CALL ON OIL FROM OPEC AND FROM WORLD INVENTORIES OF 255 MILLION BARRELS A DAY IN THE FOURTH QUARTER THAT IS ONE MILLION BARRELS A DAY HIGHER THAN OPEC'S PRODUCTION CEILING A DIFFERENCE THAT WILL BE MET BY WITHDRAWALS FROM COMPANIES' INVENTORIES OIL COMPANIES AND SOME PRODUCING COUNTRIES HAVE ABUNDANT SUPPLIES IN STORAGE MORE THAN ENOUGH TO SATISFY SUCH STOCK DRAWDOWNS AS A RESULT OPEC WATCHERS SAY THE EXPORTERS NEED TO SHOW PERFECT QUOTA DISCIPLINE IN THE MONTHS AHEAD STILL ACCORDING TO THE ENERGY COMPASS A LONDONBASED INDUSTRY PUBLICATION IF THE PRODUCER GROUP HOLDS OCTOBER OUTPUT CLOSE TO 245 MILLION BARRELS A DAY PRICES MIGHT SEE A GRADUAL AND STEADY RISE MANY ANALYSTS REMAIN BULLISH ON THE ACCORD GIVEN THAT TWO ESSENTIAL OPEC PLAYERS SAUDI ARABIA AND IRAN PUBLICLY PUT ASIDE STRIKING DIFFERENCES TO AGREE ON A NEW PRODUCTION CEILING AND HAVE SEEMINGLY ENTERED A FRESH ERA OF DIPLOMATIC RELATIONS THE ENERGY COMPASS SAID 9310110110 931011 WHO'S NEWS MICROCHIP TECHNOLOGY INC MICROCHIP TECHNOLOGY INC CHANDLER ARIZ STEVE SANGHI PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS ELECTED CHAIRMAN MR SANGHI 38 YEARS OLD SUCCEEDS DONALD T VALENTINE 61 A GENERAL PARTNER WITH THE COMPANY'S PRIMARY VENTURE CAPITAL INVESTOR SEQUOIA CAPITAL OF MENLO PARK CALIF MICROCHIP ALSO SAID JACK BEEDLE 60 WAS ELECTED A DIRECTOR HE IS THE FOUNDER AND PRESIDENT OF INSTAT INC A HIGHTECHNOLOGY MARKET RESEARCH FIRM MR VALENTINE AND PAUL S BRENTLINGER 66 RESIGNED AS DIRECTORS MICROCHIP IS A SUPPLIER OF FIELDPROGRAMMABLE 8BIT MICROCONTROLLERS AND RELATED SPECIALTY MEMORY PRODUCTS 9310110109 931011 PARAMOUNT'S BOARD IS EXPECTED TO SEEK MORE INFORMATION FROM QVC NETWORK BY RANDALL SMITH AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL DIRECTORS OF PARAMOUNT COMMUNICATIONS INC ARE EXPECTED TODAY TO AUTHORIZE THEIR ADVISERS TO SEEK MORE INFORMATION FROM QVC NETWORK INC ABOUT QVC'S UNSOLICITED 95 BILLION 80ASHARE BID FOR PARAMOUNT BUT THE BOARD PROBABLY WON'T GIVE A GREEN LIGHT FOR THE ADVISERS TO BEGIN FORMAL MERGER NEGOTIATIONS WITH QVC ACCORDING TO PEOPLE FAMILIAR WITH THE TAKEOVER BATTLE BETWEEN QVC THE HOMESHOPPING CABLETV CHANNEL AND VIACOM INC A CABLETV COMPANY VIACOM HAS AGREED TO ACQUIRE PARAMOUNT A MOVIE TV AND PUBLISHING GIANT IN A MERGER CURRENTLY VALUED AT 73 BILLION OR 6128 A SHARE PARAMOUNT IS UNDER GROWING PRESSURE FROM SHAREHOLDERS TO DEAL DIRECTLY WITH QVC WHOSE BID TOPS VIACOM'S BY 22 BILLION PARAMOUNT HAS SAID ITS AGREEMENT TO BE ACQUIRED BY VIACOM PREVENTED PARAMOUNT FROM TALKING WITH ANY OTHER BIDDER UNTIL THAT BIDDER PROVIDED PROOF OF FINANCING LAST WEEK QVC SUBMITTED TO PARAMOUNT A BANK FINANCING COMMITMENT FOR THE 30ASHARE CASH PORTION OF ITS BID THE SLOW DELIBERATE NATURE OF PARAMOUNT'S RESPONSE TO QVC IS IN LINE WITH VIACOM'S STRATEGY OF ATTEMPTING TO LET THE TAKEOVER CONTEST DRAG OUT VIACOM IS SEEKING TO CALL INTO QUESTION THE VALUE OF THE STOCK PORTION OF QVC'S BID IF QVC'S STOCK PRICE WERE TO DECLINE THE GAP BETWEEN THE TWO COMPANIES' BIDS WOULD NARROW QVC LED BY ITS CHAIRMAN BARRY DILLER WAS STILL ASSEMBLING ITS OWN CAST OF INVESTORS OVER THE WEEKEND IN TALKS WITH BELLSOUTH CORP AND OTHER REGIONAL BELL TELEPHONE COMPANIES LATE YESTERDAY BELLSOUTH WAS DESCRIBED AS CLOSE TO A DECISION TO INVEST BETWEEN 500 MILLION AND 12 BILLION IN QVC BUT APPARENTLY NO AGREEMENT WAS REACHED ONE PERSON CLOSE TO THE TALKS SAID THERE MIGHT BE AN AGREEMENT AS EARLY AS TODAY OR TOMORROW OTHERS SAID QVC MIGHT HOLD BACK ON ADDING INVESTORS UNTIL IT BECOMES CLEARER WHETHER QVC NEEDS MORE FIREPOWER TO COMPETE WITH A HIGHER VIACOM BID THE QVC CAST ALREADY CHANGED ONCE LATE LAST WEEK WHEN TELECOMMUNICATIONS INC THE NATION'S LARGEST CABLETV SYSTEM OPERATOR AGREED TO REACQUIRE LIBERTY MEDIA CORP A CABLE PROGRAMMING COMPANY THAT OWNS 22 OF QVC IN A MERGER VALUED AT ROUGHLY 38 BILLION THAT PROPOSAL GAVE MORE PROMINENCE TO TCI'S PRESIDENT JOHN MALONE IN THE TAKEOVER BATTLE MR DILLER BY COMPARISON CONTROLS JUST 126 OF QVC TCI SPUN OFF ITS PROGRAMMING ASSETS INTO LIBERTY IN 1991 TO QUELL COMPLAINTS IN CONGRESS THAT THE COMPANY HAD GROWN TOO POWERFUL WITH ITS VAST HOLDINGS IN CABLE SYSTEMS AND CABLE PROGRAMMING BUT LAST MONTH THE FCC PASSED NEW RULES REGARDING HORIZONTAL AND VERTICAL INTEGRATION AND TCI AND LIBERTY FALL WITHIN THE OWNERSHIP LIMITS THE RECOMBINATION BOOSTS MR MALONE'S OWNERSHIP STAKE IN TCI FROM 05 TO 5 AND GIVES HIM A PAPER PROFIT OF ROUGHLY 660 MILLION ON HIS LIBERTY STAKE VIACOM WHICH LAST MONTH FILED AN ANTITRUST SUIT IN FEDERAL COURT IN NEW YORK ACCUSING MR MALONE OF MONOPOLIZING THE CABLETV BUSINESS STEPPED UP ITS ATTACK ON MR MALONE ONLY HOURS AFTER THE TCILIBERTY DEAL WAS ANNOUNCED IN A STATEMENT VIACOM CALLED THE DEAL ONE MORE STEP IN MALONE'S MONOPOLISTIC ENDEAVORS ADDING THAT IT MERELY CONFIRMS WHAT WE HAVE KNOWN ALL ALONG QVC IS JUST A STALKING HORSE FOR TCI AND JOHN MALONE BRENDAN CLOUSTON CHIEF OPERATING OFFICER OF TCI RESPONDED I REGRET THAT VIACOM HAS CHOSEN TO ATTACK JOHN MALONE PERSONALLY HE SAID OF THE TCILIBERTY MERGER THE FUTURE OF THIS INDUSTRY IS GOING TO INVOLVE THE POWER OF CONTENT ALLIED WITH DISTRIBUTION WITH LIBERTY WE KNOW WHAT THE ASSETS ARE AND WHAT THEY CAN BE MEANWHILE VIACOM ALSO CHANGED ITS OWN LINEUP LAST WEEK ADDING GOLDMAN SACHS & CO SO ITS MEDIA AND CABLETV ANALYSTS RICHARD SIMON AND BARRY KAPLAN CAN HELP SELL THE BENEFITS OF ITS PROPOSED PARAMOUNT MERGER TO INSTITUTIONAL INVESTORS HOWEVER PHILIPPE DAUMAN VIACOM'S GENERAL COUNSEL AND SENIOR AIDE TO VIACOM CHAIRMAN SUMNER REDSTONE SAID THAT SMITH BARNEY SHEARSON'S ROBERT GREENHILL REMAINS OUR SOLE FINANCIAL AND DEAL ADVISER FOR THE PARAMOUNT TRANSACTION HE ADDED THAT GOLDMAN'S ANALYSTS ARE ASSISTING SMITH BARNEY AND OURSELVES IN ANALYZING AND DEALING WITH THE INVESTMENT COMMUNITY SMITH BARNEY SHEARSON IS A UNIT OF PRIMERICA CORP PEOPLE ON WALL STREET POINTED OUT THAT GOLDMAN WILL BE RECEIVING A FEE OF ONLY 1 MILLION THE SAME AS BEAR STEARNS & CO ANOTHER WALL STREET FIRM THAT VIACOM ENLISTED A FEW DAYS AFTER ITS AGREEMENT WITH PARAMOUNT WAS ANNOUNCED FOUR WEEKS AGO SMITH BARNEY'S FEE WILL TOP 10 MILLION THESE PEOPLE SAID IF ANYTHING SOME WALL STREET EXPERTS SAID THAT GOLDMAN'S WILLINGNESS TO ENTER THE FRAY FOR SUCH A SMALL FEE SHOWS THAT THERE IS A SMALL LIKELIHOOD OF ANOTHER ASYETUNDECLARED BIDDER ENTERING THE CONTEST FOR PARAMOUNT AT THIS LATE DATE LIBERTY'S CLASS A SHARES FELL 325 A SHARE TO 2525 IN NATIONAL OVERTHECOUNTER TRADING FRIDAY AS INVESTORS REALIZED THAT THEY WOULDN'T RECEIVE A PREMIUM PRICE IN THE PROPOSED EXCHANGE OF 0975 SHARE OF THE COMBINED COMPANY FOR EACH LIBERTY SHARE TCI CLASS A SHARES ROSE 1625 TO 2750 GIVING THE PROPOSED STOCK SWAP A PERSHARE VALUE OF 2681 TCI HOLDERS WOULD RECEIVE ONE SHARE OF THE NEW COMPANY FOR EACH OF THEIR SHARES BUT FEW HOLDERS OF LIBERTY WHICH HAD SURGED IN PRICE EARLIER LAST WEEK ON RUMORS ABOUT THE MERGER WERE UPSET WILLIAM NYGREN DIRECTOR OF RESEARCH AT HARRIS ASSOCIATES AN INVESTMENT FIRM THAT OWNS ALMOST SEVEN MILLION LIBERTY SHARES SAID JOHN MALONE AND THE MANAGEMENT TEAMS AT LIBERTY AND TCI FIT OUR DEFINITION OF COMPANIES THAT WORK FOR SHAREHOLDERS OTHER THAN ANYBODY WHO BOUGHT THE STOCK IN THE PAST TWO DAYS YOU'D HAVE A HARD TIME FINDING A UNHAPPY LIBERTY SHAREHOLDER MEANWHILE TCI CONTINUES TO PURSUE ITS OWN AGENDA FOR ALLIANCES APART FROM QVC AND THE BATTLE FOR PARAMOUNT INDUSTRY EXECUTIVES SUGGESTED THAT TCI AND LIBERTY COULD BE GROOMING THE NEW COMBINED COMPANY FOR AN INVESTMENT BY A TELEPHONE COMPANY ALREADY REGIONAL TELEPHONE COMPANIES ARE ALIGNING WITH BIG CABLE PLAYERS NYNEX CORP RECENTLY MOVED TO PUMP 12 BILLION INTO VIACOM AND U S WEST HAS INVESTED MORE THAN 25 BILLION IN TIME WARNER INC'S CABLE AND ENTERTAINMENT OPERATIONS MANY BELIEVE TCI MIGHT EVENTUALLY STRIKE A DEAL WITH AMERICAN TELEPHONE & TELEGRAPH CO MOREOVER PEOPLE FAMILIAR WITH THE SITUATION SAY THE CABLE GIANT HAS APPROACHED OTHER ENTERTAINMENT COMPANIES SUCH AS SONY CORP AND MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA ABOUT BUYING STAKES IN THEM IF YOU HAVE TO SPEND ALL THIS MONEY IN THE NEXT FEW YEARS FOR FILMS FROM STUDIOS AND ON COMPRESSION TECHNOLOGY TO UPGRADE CABLE SYSTEMS YOU'RE LOOKING AT HUGE CAPITAL AND PROGRAMMING EXPENDITURES SAID JOHN FIELD AN ANALYST WITH HANIFEN IMHOFF YOU'D RATHER HAVE THE TELCOS AS ALLIES RATHER THAN GOING AGAINST THEM INDUSTRY OBSERVERS BELIEVE BELLSOUTH PROBABLY WON'T BE SATISFIED WITH A DEAL THAT MIRRORS THE ONE NYNEX STRUCK WITH VIACOM FOR ITS 12 BILLION CASH INFUSION NYNEX RECEIVED A TWOYEAR WINDOW IN WHICH TO FORM A STRATEGIC ALLIANCE WITH VIACOM A POSSIBLY LOWER RATE FOR FUTURE ACCESS TO PROGRAMMING AND A FIRST CRACK AT PROVIDING INTERACTIVE VOICE AND VIDEO TECHNOLOGY THEY'RE GOING TO WANT A MORE DEFINITIVE LOCK ON THE PROGRAMMING RIGHTS THAN WHAT NYNEX GOT SAID CRAIG W ELLIS SENIOR TELECOMMUNICATIONS ANALYST WITH WHEAT FIRST BUTCHER & SINGER IN RICHMOND VA IN ADDITION TO ITS LOCAL TELEPHONE NETWORK BELLSOUTH HAS A SUBSTANTIAL CELLULAR OPERATION WITH COVERAGE IN THE US EUROPE AUSTRALIA AND ELSEWHERE BUT UNLIKE OTHER BABY BELLS SUCH AS BELL ATLANTIC BELLSOUTH HASN'T MADE A BIG PUSH TO PROVIDE VIDEO PROGRAMMING TO HOMES SO ITS MISSION IN THE PARAMOUNT NEGOTIATIONS MAY BE TWOFOLD WHILE BELLSOUTH WOULD LIKE TO HAVE FUTURE ACCESS TO PARAMOUNT'S VAST PROGRAMMING SAID ONE INDUSTRY OBSERVER IT ALSO MAY TAKE THIS OPPORTUNITY TO HOOK UP WITH A CABLE PARTNER THAT COULD HELP DELIVER THE PROGRAMMING DOWN THE ROAD EMORY THOMAS JR IN ATLANTA CONTRIBUTED TO THIS ARTICLE 9310110108 931011 WHO'S NEWS MACNEALSCHWENDLER CORP MACNEALSCHWENDLER CORP LOS ANGELES LARRY MCARTHUR THE 52YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RECENTLY ACQUIRED ARIES TECHNOLOGY INC WAS NAMED PRESIDENT AND CHIEF OPERATIONS OFFICER HE ASSUMES THE LATTER TITLE FROM DENNIS A NAGY 49 WHO BECOMES SENIOR VICE PRESIDENT OPERATIONS WITH NO CHANGE IN HIS RESPONSIBILITIES THE COMPANY SAID RICHARD H MACNEAL 70 FOUNDER OF THIS MAKER OF COMPUTER SOFTWARE FOR ENGINEERING APPLICATIONS CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE 9310110107 931011 TECHNOLOGY DELL'S RECALL OF NOTEBOOKS INCREASES WOES BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DELL COMPUTER CORP'S NOTEBOOK COMPUTER WOES CONTINUED TO WORSEN WITH THE COMPANY ANNOUNCING PLANS TO RECALL 17000 OF ITS MACHINES BECAUSE THEY'RE PRONE TO OVERHEATING THE RECALL IS EXPECTED TO COST THE AUSTIN TEXAS COMPANY AS MUCH AS 2 MILLION IT IS THE LATEST IN A SERIES OF MISSTEPS FOR DELL IN THE NOTEBOOK BUSINESS NOW AMONG THE FASTESTGROWING COMPUTERINDUSTRY SEGMENTS EARLIER THIS YEAR DELL SCRAPPED A PLANNED LINE OF NEW NOTEBOOKS AFTER DECIDING THAT THE MACHINES DIDN'T MEASURE UP TO THE COMPETITION THAT MOVE COMBINED WITH A SPATE OF OTHER INTERNAL CONTROL PROBLEMS RESULTED IN A FISCAL SECONDQUARTER LOSS OF 757 MILLION THE FIRST QUARTERLY DEFICIT IN DELL'S HISTORY AS A PUBLIC COMPANY THOUGH ANALYSTS SAY THE RECALL ISN'T BIG ENOUGH TO AFFECT DELL'S EARNINGS IT COULD FURTHER DENT A COMPANY IMAGE ALREADY HAMMERED BY THE PRIOR NOTEBOOK SETBACKS IT HAS TO RAISE SOME BASIC DOUBTS ABOUT QUALITY SAID WILLIAM C CONROY A COMPUTER INDUSTRY ANALYST AT WILLIAMS MACKAY JORDAN & CO IN HOUSTON IT ERODES THE VALUE OF THEIR BRAND NAME DELL VOWS IT WILL HAVE A NEW FAMILY OF NOTEBOOKS ON THE MARKET BY EARLY NEXT YEAR THE COMPANY HASN'T INDICATED WHETHER IT PLANS TO MAKE THOSE MACHINES ITSELF OR FARM OUT THE WORK TO ANOTHER PC SUPPLIER IN NATIONAL OVERTHECOUNTER TRADING FRIDAY DELL'S STOCK CLOSED AT 16125 DOWN 25 CENTS A DELL SPOKESMAN SAID THE RECALL AFFECTS ALL OF THE COMPANY'S 320SLI AND 325SLI NOTEBOOKS WHICH WERE DISCONTINUED EARLIER THIS YEAR HE SAID A CAPACITOR ON THE MAIN ELECTRONICS PANEL OF THE MACHINES CAN CRACK UNDER PHYSICAL STRESS SUCH AS WHEN A POWER CORD IS PLUGGED INTO THE BACK OF THE COMPUTER THE CRACKED PART IN TURN CAN CAUSE THE MACHINE TO OVERHEAT CREATING A POTENTIAL FIRE HAZARD DELL SAID IT HAS SEEN THE OVERHEATING PROBLEM IN THREE MACHINES RETURNED TO THE COMPANY BUT HASN'T BEEN ABLE TO DUPLICATE THE PROBLEM IN ITS OWN LABS THE SPOKESMAN DECLINED TO NAME THE SUPPLIER WHO SOLD DELL ITS CAPACITORS THOUGH HE SAID THE COMPANY DOESN'T BELIEVE THE PROBLEM IS RELATED TO BAD PARTS THIS IS A DESIGN ISSUE HE SAID DELL SAID OWNERS OF THE RECALLED MACHINES CAN ARRANGE FOR REPAIRS BY CALLING THE COMPANY AT 18008474171 9310110106 931011 JAPANESE AD FIRMS TO DEVELOP SOFTWARE FOR MATSUSHITA GAME TOKYO KYODO JAPAN'S TWO TOP ADVERTISING AGENCIES WILL LINK UP WITH MATSUSHITA ELECTRIC INDUSTRIAL CO TO DEVELOP VIDEO GAME SOFTWARE FOR MATSUSHITA'S NEW POWERFUL MULTIMEDIA MACHINE THE NIHON KEIZAI SHIMBUN REPORTED DENTSU INC AND HAKUHODO INC IN SEPARATE MOVES WILL JOIN FORCES WITH THE WORLD'S LEADING CONSUMER ELECTRONICS MAKER TO DEVELOP VIDEO GAME SOFTWARE FOR 3DO A MULTIMEDIA PLAYER THE COMPANY PLANS TO MARKET IN THE SPRING THE NEWSPAPER SAID MATSUSHITA IS BASING ITS MARKET STRATEGY ON THE LAUNCH OF THE MACHINE IT WILL USE A 32BIT MICROPROCESSOR TWICE AS POWERFUL AS CHIPS DRIVING THE CURRENT GENERATION OF MACHINES OF VIDEO GAME GIANTS SUCH AS NINTENDO CO OR SEGA ENTERPRISES LTD FOR ENTRY INTO THE VIDEO GAME BUSINESS MATSUSHITA HAS INVESTED IN A SMALL US COMPANY CALLED 3DO WHICH IS AFFILIATED WITH ELECTRONICS ARTS A CALIFORNIA GAME SOFTWARE COMPANY BOTH DENTSU AND HAKUHODO WILL SEEK COOPERATION FROM DOMESTIC SOFTWARE COMPANIES TO DEVELOP GAME SOFTWARE FOR SALES STARTING IN THE SUMMER THE NEWSPAPER SAID THE JOINT PROJECTS WILL REPRESENT THE FIRST VIDEO GAME SOFTWARE BUSINESS FOR BOTH OF THE TWO ADVERTISING AGENCIES 9310110105 931011 ANALYSTS SPLIT ON PLACING CHIPS ON SEMICONDUCTORS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH INVESTORS AND ANALYSTS ON TENTERHOOKS TODAY AWAITING INTEL CORP'S THIRDQUARTER EARNINGS REPORT A FIERCE DEBATE ON THE WISDOM OF OWNING SEMICONDUCTOR STOCKS IS RAGING BIG MONEY CAN BE MADE BY NIMBLE INVESTORS WHO GRAB THESE STOCKS WHEN THEY'RE DOWN BUT BUYING NEAR THE TOP CAN LEAVE AN INVESTMENT MANAGER WITH AN EMBARRASSINGLY BAD PERFORMANCE AND MANY ANALYSTS SAY THE WILD UPS AND DOWNS THAT HAVE CHARACTERIZED THE STOCKS THIS YEAR AREN'T ABOUT TO END EVERYBODY HATES THEM SO I'M BUYING SAYS LARRY BOWMAN HEAD OF FIDELITY'S EMERGING GROWTH FUND NEGATIVE PSYCHOLOGY IS KILLING THE INDUSTRY BUT THESE STOCKS ARE GOING TO DO JUST GREAT SOME OF THE COMPUTERCHIP MAKERS FELL OFF THEIR HIGHS LAST WEEK AFTER BELLWETHER ADVANCED MICRO DEVICES INC ANNOUNCED DISAPPOINTING EARNINGS AND SOME ANALYSTS BEGAN TO SPREAD WORRIES ABOUT INDUSTRYWIDE PROBLEMS IN THE SELLOFF THAT RESULTED LAST WEEK ADVANCED MICRO TOOK A 26 DIVE MICRON TECHNOLOGY INC TUMBLED 82 TEXAS INSTRUMENTS INC LOST 68 LSI LOGIC CORP DROPPED 55 AND ALTERA CORP DROPPED 89 BUT THAT BAD NEWS ISN'T DETERRING EDWARD KEELY HE'S TAKING AN EVEN DEEPER PLUNGE INTO SEMICONDUCTOR STOCKS WHEN I'M FEELING THE MOST SICK AND DISGUSTED ABOUT THE WAY MY STOCKS ARE ACTING THEN I KNOW IT'S TIME TO BE BUYING SAYS MR KEELY AN ASSISTANT PORTFOLIO MANAGER WITH FOUNDERS ASSET MANAGEMENT IN DENVER AND I'VE BEEN FEELING PRETTY SICK MR KEELY SAID HE IS HOLDING ON TO HIS SEMICONDUCTOR POSITIONS IN ABOUT EIGHT STOCKS AND IS EVEN ADDING TO SOME OF THEM BUT MANY MONEY MANGERS ARGUE THAT IT'S WORTH HAVING SOME DOUBTS ABOUT THE SEMICONDUCTOR STOCKS ROGER MCNAMEE OF INTEGRAL PARTNERS IN PALO ALTO CALIF SAYS THAT EVERY TIME I HEAR THIS TIME IT IS REALLY DIFFERENT THE STOCKS ARE GOING TO KEEP RISING FOR A LONG TIME' I GET NERVOUS SEMICONDUCTOR STOCKS HAVE NEVER BEEN AN EASY INVESTMENT TO GAUGE AND THE BUSINESS HAS LONG BEEN DISDAINED AS A LOWMARGIN COMMODITY INDUSTRY THE COMPANIES CONSTANTLY FACE RAPID PRODUCT CYCLES AND HARSH COMPETITION THAT SEND THE GROUP ON WILD SWINGS AND THE GROUP'S RISE DURING THE PAST COUPLE OF MONTHS GIVES SKEPTICS AN ADDITIONAL REASON TO BAIL OUT WITH SOME PROFITS AT THE SIGN OF ANY BAD NEWS LAST WEEK'S TRIGGER WAS ADVANCED MICRO'S ANNOUNCEMENT THAT IT EARNED 61 CENTS A SHARE UP FROM 51 CENTS A SHARE A YEAR EARLIER ANALYSTS HAD EXPECTED ABOUT 69 CENTS A SHARE BUT FIDELITY'S MR BOWMAN SAYS THE RUSH FOR THE DOOR IS PREMATURE ADVANCED MICRO DEVICES IS FREAKING PEOPLE OUT HE SAYS IT'S RIDICULOUS I'VE CALLED THREE DOZEN COMPANIES AND I CAN TELL YOU THIS WEEK THERE WON'T BE ANY BLOODSHED IT'S GOING TO BE A GOOD WEEK FOR THESE STOCKS WHETHER THAT'S TRUE WILL BEGIN TO BE EVIDENT TODAY WHEN INTEL REPORTS THIRDQUARTER EARNINGS FOLLOWED LATER THIS WEEK BY A SLEW OF OTHERS INCLUDING TEXAS INSTRUMENTS ANALYSTS ARE EXPECTING ABOUT 134 A SHARE FOR INTEL'S QUARTER A BIG JUMP FROM THE COMPANY'S 56 CENTS A SHARE A YEAR EARLIER AFTER ADJUSTING FOR A TWOFORONE STOCK SPLIT EARLIER THIS YEAR BUT REACHING ESTIMATES ISN'T ALWAYS ENOUGH INVESTORS OFTEN LOOK FOR MARKET LEADERS TO DO BETTER THAN EXPECTED FOR THE YEAR THE AVERAGE ESTIMATE ON INTEL IS FOR 528 A SHARE AND PROJECTIONS FOR NEXT YEAR RANGE FROM AS LOW AS 350 TO AS HIGH AS 720 THE STOCK JUMPED 150 TO 7025 FRIDAY AS MANY INVESTORS ANTICIPATED THE COMPANY TO MEET EARNINGS EXPECTATIONS SOME INVESTORS WERE ENCOURAGED LAST WEEK WHEN ATMEL CORP BEAT ANALYSTS' EXPECTATIONS REPORTING THIRDQUARTER EARNINGS OF 40 CENTS A SHARE SIX CENTS ABOVE WALL STREET'S ESTIMATE OF 34 CENTS A SHARE A YEAR EARLIER THE COMPANY EARNED 21 CENTS A SHARE THE SEMICONDUCTOR GROUP JUST GOT A HECK OF A LOT CHEAPER RELATIVE TO EARNINGS POTENTIAL AND IT'S A GOOD BUY SAYS THOMAS THORNHILL III MANAGING DIRECTOR AT MONTGOMERY SECURITIES IN SAN FRANCISCO HE SAYS ADVANCED MICRO'S EARNINGS DISAPPOINTMENTS ARE THE RESULT OF VERY SPECIFIC PROBLEMS THAT DON'T APPLY TO MUCH OF THE REST OF THE INDUSTRY THE COMPANY GOT STUCK BETWEEN SHIFTING PRODUCTION FROM A 386 CHIP TO A 486 CHIP A MORE POWERFUL MICROPROCESSOR THAT IS A CLONE OF INTEL'S 486 CHIP HE EXPLAINS BUT MANY MONEY MANAGERS WARN THAT INTEL IS ALMOST IN A CLASS BY ITSELF MANY OF WHAT INVESTORS CALL THE SECONDTIER CHIPMAKERS SUCH AS LSI LOGIC NATIONAL SEMICONDUCTOR CORP MICRON AND A HANDFUL OF OTHER MIDSIZE CHIP MAKERS DON'T HAVE THE SAME PROPRIETARY PRODUCTS AND ARE MERELY RIDING THE WAVE OF INCREASED DEMAND FOR MEMORY POWER THEY ARGUE ADVANCED MICRO'S BAD QUARTER IS NOT THE ONLY REASON INVESTORS ARE NERVOUS PERSONALCOMPUTER PRICE WARS HAVE PUSHED DOWN FORMER HIGHFLYING STOCKS SUCH AS DELL COMPUTER CORP AND APPLE COMPUTER INC CREATING A PAINFUL LESSON FOR TECHNOLOGY INVESTING FOUNDERS' MR KEELY ARGUES THAT PC SALES MIGHT BE DEPRESSED BUT SEMICONDUCTORS HAVE BECOME A PART OF OUR DAILY ELECTRONIC LIVES IN MANY DIFFERENT FORMS WE USE THIS STUFF FOR EVERYTHING THE CAR RADIO AND FUEL INJECTION HE SAYS AND THERE'S GOING TO BE A LOT OF USE FOR THEM IN THE WIRELESS INDUSTRY NOT THAT MANY INDUSTRIES HAVE THAT KIND OF GROWTH PROSPECTS HE SAYS SEMICONDUCTORS ARE FAR FROM RUNNING OUT OF ROOM TO GROW AGREES MONTGOMERY'S MR THORNHILL THE DEMAND IS GOING TO GO ON FOR A LONGER PERIOD OF TIME THAN MOST PEOPLE ARE EXPECTING HE SAYS THIS YEAR IT LOOKS LIKE SEMICONDUCTOR CONSUMPTION WILL SHOW WORLDWIDE GROWTH OF 20 AND SLIGHTLY MORE IN THE US HE SAYS AND NEXT YEAR THE INDUSTRY COULD SHOW GLOBAL GROWTH PERCENTAGES IN THE MIDTEENS HE PREDICTS DEMAND HAS STRENGTHENED RECENTLY FOR DYNAMIC RANDOMACCESS MEMORIES KNOW AS DRAMS BECAUSE OF A SCALING DOWN BY JAPANESE PRODUCERS AND AN EXPLOSION AT ONE OF THE WORLD'S BIGGEST SUPPLIERS OF PLASTIC RESIN TO ENCASE THE CHIPS AS A RESULT OF THOSE EVENTS DEMAND FOR BOTH THE MEMORY CHIPS AND THE STOCKS OF PRODUCER COMPANIES GREW FASTER THAN SUPPLY BUT NOW THE CHIP COMPANIES ARE GOING TO HAVE TO PRODUCE GOOD EARNINGS TO JUSTIFY THEIR STOCK PRICES EVEN AS CHANGING TECHNOLOGY RAISES QUESTIONS ABOUT FUTURE GROWTH THE SEMICONDUCTOR INDUSTRY IS RAPIDLY MOVING TO 16MEGABIT DRAMS FROM FOURMEGABIT DRAMS TO SATISFY INCREASED NEEDS FOR MORE MEMORY IN SUCH DEVICES AS GRAPHIC AND AUDIO MULTIMEDIA HARDWARE BUT MR MCNAMEE OF INTEGRAL PARTNERS WONDERS IF THE SUPPLY OF MEMORY WILL SOON OUTNUMBER THE DEMAND HAS THE NEED FOR MEMORY INCREASED FOURFOLD HE ASKS ALTHOUGH MR MCNAMEE HOLDS LONG POSITIONS IN CIRRUS LOGIC INC AND INTEL HE WARNS THAT WITH SEMICONDUCTOR STOCKS THERE IS ALWAYS THE POSSIBILITY OF HAVING AN EARTHQUAKE RUN THROUGH YOUR PORTFOLIO 9310110104 931011 HOECHST SAYS CORROSION IN A COOLING SYSTEM WAS CAUSE OF GAS LEAK SPECIAL TO THE WALL STREET JOURNAL FRANKFURT HOECHST AG A GERMAN CHEMICAL MAKER SAID CORROSION IN A COOLING SYSTEM CAUSED CHLORINE GAS TO BE ACCIDENTALLY RELEASED BRIEFLY WEDNESDAY THE COMPANY SAID 13 PEOPLE HAD TO BE TREATED ON AN OUTPATIENT BASIS FOR IRRITATION TO THEIR BREATHING PASSAGES THIS PAST SPRING HOECHST FACILITIES SAW A SERIES OF ACCIDENTS SOME OF WHICH RELEASED TOXIC COMPOUNDS OVER THE FRANKFURT METROPOLITAN AREA THAT LED THE HESSE STATE GOVERNMENT TO LAUNCH A FORMAL SAFETY INVESTIGATION HOECHST IS ONE OF GERMANY'S BIGTHREE CHEMICAL MAKERS ACTIVE IN COLORS FIBERS POLYMERS PHARMACEUTICALS AND AGRICULTURAL CHEMICALS 9310110103 931011 BUSINESS BRIEF IBM MAY SEEK CASH IN THE DEBT MARKETS FOR THIRD TIME IN '93 NEW YORK INTERNATIONAL BUSINESS MACHINES CORP FOR THE THIRD TIME THIS YEAR MAY SEEK CASH IN THE DEBT MARKETS A SPOKESMAN SAID THE COMPANY ISN'T SHORT ON CASH BUT IS SEEKING THE FUNDS FOR GENERAL CORPORATE PURPOSES IBM LAST WEEK FILED A SHELF OFFERING FOR 975 MILLION OF DEBT SECURITIES WITH THE SECURITIES AND EXCHANGE COMMISSION THE POTENTIAL OFFERING WAS APPROVED BY THE IBM BOARD AT ITS JULY MEETING THE SPOKESMAN OFFERED NO FURTHER EXPLANATION OF THE PURPOSES FOR THE FUNDS IF IBM SELLS THE SECURITIES THAT WOULD BRING THE TOTAL CASH RAISED THIS YEAR TO 385 BILLION INCLUDING A PREFERREDSTOCK OFFERING IN MAY AND A BOND SALE IN JUNE JAY STEVENS AN ANALYST AT DEAN WITTER SAID THE OFFERINGS WOULD INDICATE THE CASH FLOW ISN'T WHAT IT OUGHT TO BE BUT HE NOTED THAT COMPANIES OFTEN RAISE MONEY TO PAY DOWN DEBTS OR FOR OTHER PURPOSES THAT AREN'T NECESSARILY THE RESULT OF A CASHFLOW PROBLEM THE SPOKESMAN SAID IBM'S CASH BALANCE AS OF JUNE 30 WAS 677 BILLION NO UNDERWRITERS WERE LISTED FOR THE SHELF OFFERING FITCH INVESTORS SERVICE INC NOTED THAT IBM STILL FACES LARGE CASH REQUIREMENTS OVER THE NEXT TWO YEARS TO COVER RESTRUCTURING COSTS IN THE MIDST OF CONTINUED DECLINE IN ITS MAINFRAME COMPUTER BUSINESS AND INCREASED COMPETITION IN OTHER PRODUCT AREAS IT ADDED HOWEVER THAT LIQUIDITY REMAINS ADEQUATE TO MEET MATURING DEBT AND FUND OPERATIONS 9310110102 931011 ENTERPRISE MERCHANTS' IRE FLARES OVER FEES ON CREDIT CARDS BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL AS CREDITCARD COMPANIES MOUNT DRIVES TO ENROLL SMALL MERCHANTS THE MERCHANTS BEING WOOED HAVE A DECIDEDLY UNROMANTIC REACTION SKIP THE FLOWERS AND CUT THE FEES WHILE SMALL MERCHANTS HAVE LONG CONSIDERED CREDITCARD FEES EXCESSIVE THEIR ANGER IS GROWING SAYS ED KNODLE EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION RETAIL DEALERS OF AMERICA A TRADE GROUP BASED IN LOMBARD ILL TIGHTER PROFIT MARGINS IN RECENT YEARS HAVE HEIGHTENED THE CONCERN HE ADDS MAJOR CARD COMPANIES INCLUDING VISA USA INC MASTERCARD INTERNATIONAL INC AND THE DISCOVER CARD SERVICES DIVISION OF DEAN WITTER DISCOVER & CO ALL SAY THEY HAVE RECENTLY STEPPED UP THEIR PURSUIT OF SMALL MERCHANTS FOR EXAMPLE DISCOVER SAYS IT HAS SIGNED UP 6000 NEW RESTAURANT ACCOUNTS IN NEW YORK CITY ALONE DURING THE PAST 18 MONTHS DISCOVER IS THE ONLY CARD THAT HAS SHOWN STRONG OVERALL GROWTH IN ITS MERCHANT BASE OVER THE PAST FOUR YEARS ACCORDING TO INDUSTRY FIGURES ALTHOUGH IT IS UNCLEAR HOW MUCH OF THAT GROWTH COMES FROM SMALL MERCHANTS VISA AND MASTERCARD SAY THEY HAVE STARTED OFFERING SMALL BUSINESSES STARTER KITS THAT HELP THEM WITH SUCH THINGS AS DISPLAY SIGNS AND TRAINING EMPLOYEES TO PROCESS CREDITCARD TRANSACTIONS AMERICAN EXPRESS CO WHOSE CHARGE CARD LONG HAS BEEN SPURNED BY MANY SMALL BUSINESSES AS TOO EXPENSIVE SAYS IT ISN'T SPECIFICALLY TARGETING SUCH ACCOUNTS BUT INCLUDES THEM IN BROADER MARKETING EFFORTS NONETHELESS MERCHANT BOYCOTTS LED AMERICAN EXPRESS TO REDUCE ITS FEES TWO YEARS AGO AMONG THE MANY SMALL MERCHANTS STILL UPSET OVER CREDITCARD FEES IS JOHN KOUTOUFARIS OWNER OF THE BLUE COAT INN A DOVER DEL RESTAURANT I FEEL FRUSTRATED BECAUSE 2 OR 3 IN FEES CAN BE A BIG AMOUNT OF MONEY TO GIVE UP EACH DAY HE SAYS IT BOTHERS ME MUCH MORE NOW THAN IN THE PAST BECAUSE OF THE ECONOMY WE NEED EVERY LITTLE PENNY JUST TO SURVIVE MR KOUTOUFARIS SAYS ALL THE CREDITCARD COMPANIES MAKE HIM PAY TOO MUCH HE PAYS A FEE OR DISCOUNT RATE OF 225 FOR VISA AND MASTERCARD AND 35 FOR AMERICAN EXPRESS AT THE HIGH END OF THE SCALE JULIA DICKENSON PAYS A 6 DISCOUNT RATE TO HONOR VISA AND MASTERCARD AT THIN AIR STUDIO HER JEWELRY STORE IN SANTA FE NM PEOPLE ARE SHOCKED THAT I ENCOURAGE PERSONAL CHECKS SAYS MS DICKENSON I'D RATHER TAKE A PERSONAL CHECK AND RUN THE RISK OF A LOSS RATHER THAN HAVE 6 TAKEN OFF THE TOP OF EVERY SALE BUT LIKE MANY ENTREPRENEURS SHE FINDS THAT HER CUSTOMERS PREFER PLASTIC MANY SMALLBUSINESS OWNERS COMPLAIN THAT CREDITCARD COMPANIES ALSO CHARGE ADDITIONAL BACKEND FEES NARDA MEMBERS ARE VERY UPSET BY SUCH ADDED FEES SAYS THE TRADE GROUP'S MR KNODLE THE GROUP HAS 4000 MEMBER COMPANIES WITH AVERAGE ANNUAL REVENUE OF 3 MILLION HE SAYS NARDA NOW RECOMMENDS THAT MEMBERS CREATE THEIR OWN PRIVATELABEL CREDIT CARDS WITH FINANCIAL INSTITUTIONS OTHER THAN THE MAJOR CREDITCARD COMPANIES OTHER TRADE ASSOCIATIONS REPRESENTING SMALL BUSINESSES HAVE RECENTLY BUNDLED MEMBERS' ACCOUNTS TO SECURE LOWER RATES FROM CREDITCARD COMPANIES THE NATIONAL ASSOCIATION OF CREDIT CARD MERCHANTS A BOYNTON BEACH FLA TRADE GROUP WITH 4000 MEMBERS OFFERS A CHECKVERIFICATION SERVICE TO MEMBERS WHO DON'T WANT TO ACCEPT CREDIT CARDS OR HAVE DIFFICULTY ESTABLISHING MERCHANT ACCOUNTS ABOUT 450 MEMBERS HAVE SIGNED UP FOR THE SERVICE SINCE IT BEGAN 18 MONTHS AGO THE ASSOCIATION SAYS FOR THEIR PART CARD COMPANIES SAY THEY MUST CHARGE SMALL MERCHANTS HIGHER FEES BECAUSE THEY ASSUME GREATER RISKS AND MAKE LESS MONEY FROM SUCH ACCOUNTS THE CARD COMPANIES ALSO SAY MOST ENTREPRENEURS PAY A MUCH LOWER DISCOUNT RATE THAN MS DICKENSON THE SANTA FE JEWELER VISA AND MASTERCARD SAY THEIR RATES RANGE FROM 15 TO 3 FOR SMALL MERCHANTS DEPENDING ON VOLUME DISCOVER SAYS ITS RATES RUN BETWEEN 1 AND 25 AMERICAN EXPRESS CITES AVERAGE DISCOUNT RATES OF ABOUT 35 BUT DISCOUNT RATES AREN'T THE ENTIRE STORY MASTERCARD VISA AND DISCOVER ALSO CHARGE MERCHANTS TRANSACTION FEES OF FIVE TO 25 CENTS PER CHARGE AND MONTHLY STATEMENT FEES OF 5 TO 25 AMERICAN EXPRESS SAYS ITS DISCOUNT RATE INCLUDES SUCH CHARGES WHAT A LOT OF RETAILERS ARE RUNNING UP AGAINST ARE BANKS OR CREDITCARD COMPANIES THAT COME IN AND SAY THEY CAN OFFER A LOWER DISCOUNT RATE SAYS NARDA'S MR KNODLE BUT THEN THEY ADD ON TRANSACTION FEES AND STATEMENT FEES SOME SMALLBUSINESS PEOPLE SAY CREDITCARD COMPANIES AREN'T COMPLETELY OPEN ABOUT TRANSACTION AND STATEMENT FEES MIKE CLEPPER OWNER OF BRADSHAW DRUGS A NASHVILLE TENN PHARMACY SAYS HE PAYS A DISCOUNT RATE OF 2 A MONTH TO HONOR VISA AND MASTERCARD AFTER ADDING TRANSACTION AND STATEMENT FEES HOWEVER MR CLEPPER SAYS HIS RATE CLIMBS TO ALMOST 25 CREDITCARD COMPANIES DON'T USUALLY BRING UP THE TRANSACTION FEES WHEN THEY TRY TO SIGN YOU UP HE SAYS AMERICAN EXPRESS AND DISCOVER SAY THEIR SALESPEOPLE PROVIDE FULL DISCLOSURE WHEN PITCHING THEIR CARDS TO A SMALL BUSINESS VISA AND MASTERCARD SAY THEY ENCOURAGE MEMBER BANKS AND OTHER INSTITUTIONS TO PROVIDE FULL DISCLOSURE AS WELL 9310110101 931011 WHO'S NEWS DIAGNOSTEK INC DIAGNOSTEK INC ALBUQUERQUE NM DAVID G DEVEREAUX 50YEAROLD PRESIDENT OF THE WESTERN REGION FOR CIGNA HEALTHCARE A DIVISION OF CIGNA CORP WAS NAMED A DIRECTOR OF THIS MAILORDER PHARMACEUTICAL COMPANY INCREASING THE BOARD'S SIZE TO SIX MEMBERS 9310110100 931011 RARE STIEGLITZ PHOTOGRAPH SETS RECORD AT AUCTION NEW YORK A VINTAGE PHOTOGRAPH BY AMERICAN PHOTOGRAPHER ALFRED STIEGLITZ SOLD FOR 398500 AT AUCTION IN NEW YORK ON FRIDAY MORE THAN DOUBLING THE PREVIOUS RECORD PRICE FOR ANY PHOTOGRAPH THE RARE PALLADIUM PRINT SIGNED AND DATED BY THE ARTIST IS A PORTRAIT OF THE HANDS OF ARTIST GEORGIA O'KEEFFE THE 1920 PRINT WAS SOLD AT CHRISTIE'S INTERNATIONAL PLC TO A BIDDER WHO WISHED TO REMAIN ANONYMOUS IT HAD BEEN ESTIMATED TO SELL FOR ABOUT 100000 TO 150000 AND WAS ONE OF SEVERAL STIEGLITZ PHOTOGRAPHS THAT BROUGHT MORE THAN EXPECTED AT THE AUCTION THE PHOTO'S PRICE ECLIPSED THE PREVIOUS RECORD OF 193895 SET IN MAY IN LONDON FOR A PHOTOGRAPH BY US SURREALIST MAN RAY 9310110099 931011 CR BARD HOLDS TALKS WITH JUSTICE OFFICIALS ON POSSIBLE INDICTMENT BOSTON SURGICAL SUPPLY MAKER CR BARD INC SAID IT IS HOLDING DISCUSSIONS WITH THE JUSTICE DEPARTMENT FOR THE DISPENSATION OF A POSSIBLE INDICTMENT WHICH COULD RESULT IN A SUBSTANTIAL FINE OR PENALTY THE COMPANY SAID BARD'S COMMENTS CAME AFTER THE BOSTON GLOBE PUBLISHED A STORY FRIDAY QUOTING UNNAMED LEGAL SOURCES AS SAYING THAT FEDERAL ATTORNEYS IN MASSACHUSETTS INTEND TO INDICT BARD UNDER THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT MOST LIKELY ON CHARGES OF MAIL FRAUD OR MAKING FALSE STATEMENTS THE US ATTORNEY'S OFFICE DECLINED TO COMMENT POSSIBLE CHARGES APPARENTLY WOULD STEM FROM A TWOYEAR GRAND JURY INVESTIGATION INTO CERTAIN HEART CATHETERS BARD PULLED FROM THE MARKET IN 1990 AFTER ADMITTING IT CHANGED THEIR DESIGN AND LABELING WITHOUT INFORMING THE FOOD AND DRUG ADMINISTRATION AS REQUIRED BY LAW CATHETERS ARE USED TO OPEN BLOCKED ARTERIES AS AN ALTERNATIVE TO BYPASS SURGERY THE COMPANY SAID IN A STATEMENT THAT WHILE THE OUTCOME OF THESE DISCUSSIONS WITH THE JUSTICE DEPARTMENT CANNOT BE PREDICTED ANY AGREEMENT COULD RESULT IN FINANCIAL PENALTIES IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE BARD SHARES CLOSED AT 23 DOWN 175 OR 71 9310110098 931011 CREDIT RATINGS TURKEY'S DEBT RATING IS STUDIED BY MOODY'S FOR POSSIBLE REDUCTION NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT IS REVIEWING ITS BAA3 LONGTERM DEBT RATING OF THE REPUBLIC OF TURKEY FOR POSSIBLE DOWNGRADE REFLECTING THE STEADY DETERIORATION OF TURKEY'S PUBLIC FINANCES ABOUT 62 BILLION OF DEBT IS AFFECTED BY THE REVIEW MOODY'S SAID THE COUNTRY'S CONSOLIDATED BUDGET DEFICIT IN 1993 COULD EXCEED THE 138 OF GROSS DOMESTIC PRODUCT REACHED IN 1992 INFLATION ABOVE 60 FOR SEVERAL YEARS MAY BE RISING AGAIN TURKEY'S TRADE DEFICIT THIS YEAR HAS RISEN 81 FROM A YEAR AGO PARTLY REFLECTING STAGNATION IN EUROPE AS WELL AS HIGH GROWTH IN DEMAND IN TURKEY THE COMMENT NOTED MOODY'S SAID IT WILL TAKE INTO CONSIDERATION THE RELATIVELY GOOD PERFORMANCE OF THE ECONOMY ESPECIALLY DURING THE SECOND QUARTER OF 1993 WHEN ECONOMIC GROWTH WAS ESTIMATED AT 13 WAGE INCREASES HAVE BEEN DECELERATING AND THE GOVERNMENT IS CONTINUING EFFORTS TO LIBERALIZE THE ECONOMY AND PRIVATIZE STATE ASSETS 9310110097 931011 PRICE WAR DAMPED TOBACCO PROFITS IN THIRD QUARTER BY MARIA MOOSHIL SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOMESTIC CIGARETTE PRICE WAR CONTINUED TO DRUB TOBACCO COMPANY EARNINGS IN THE THIRD QUARTER A TREND ANALYSTS SAY WON'T ABATE UNTIL WELL INTO 1994 IT'S GOING TO LOOK LIKE THE SECOND QUARTER VERY UGLY SAID MORGAN STANLEY & CO ANALYST HOWARD PENNEY ANALYSTS EXPECT THE QUARTER ENDED SEPT 30 TO SHOW THE WOUNDS OF A PRICING WAR STARTED BY PHILIP MORRIS COS IN APRIL WHEN IT SAID IT WOULD CUT THE PRICE OF ITS PREMIER CIGARETTE BRAND MARLBORO THE COMPANY EXTENDED THE PRICE CUT TO OTHER TOP BRANDS IN AUGUST DOMESTIC TOBACCO PROFIT EARNINGS WILL BE OFF DRAMATICALLY SAID AG EDWARDS ANALYST BARRY A ZIEGLER THE COST OF LOWERING PRICES 40 CENTS A PACK IS OBVIOUSLY LOST INCOME FIRST CALL'S CONSENSUS EARNINGS ESTIMATE FOR PHILIP MORRIS IS 116 A SHARE 19 BELOW EARNINGS OF 144 A SHARE A YEAR EARLIER FOR AMERICAN BRANDS INC THE ESTIMATE IS A 21 DECLINE TO 75 CENTS A SHARE CONSENSUS ESTIMATES FOR RJR NABISCO HOLDINGS CORP INDICATE AN 80 DECLINE TO ABOUT A NICKEL A SHARE FROM 18 CENTS ALSO TAKING A TOLL ARE HIGHER US CORPORATE TAXES AND FOREIGNCURRENCY TRANSLATIONS AMERICAN BRANDS IS EXPECTED TO POST A 20 TO 25 DROP IN INTERNATIONAL TOBACCO OPERATING EARNINGS IN PART BECAUSE OF THE DOLLAR'S STRENGTH OVERSEAS SANFORD C BERNSTEIN & CO ANALYST GARY BLACK SAID IN A RESEARCH REPORT AND THE HIGHER CORPORATE TAX WILL COST PHILIP MORRIS ABOUT FIVE CENTS A SHARE SMITH BARNEY SHEARSON INC ANALYST RONALD B MORROW SAID ANALYSTS DON'T EXPECT YEAROVERYEAR EARNINGS UNTIL THE SECOND HALF OF NEXT YEAR TOBACCO COMPANIES' PRICING AND FOREIGNCURRENCY WOES IN THE THIRD QUARTER OVERSHADOWED POSITIVE PERFORMANCES ELSEWHERE ANALYSTS SAID GROWTH IN OPERATING EARNINGS FOR PHILIP MORRIS'S INTERNATIONAL TOBACCO AND FOOD UNITS ARE PEGGED AT ABOUT 15 AND 9 RESPECTIVELY BY PRUDENTIAL SECURITIES INC ANALYST S LEIGH FERST BERNSTEIN'S MR BLACK EXPECTS RJR'S INTERNATIONAL TOBACCO OPERATIONS TO POST A 10 EARNINGS INCREASE AND ITS FOOD OPERATIONS TO POST A 15 INCREASE EXCLUDING ITS READYTOEAT CEREAL BUSINESS SOLD THIS YEAR 9310110096 931011 MARK CONTROLS BOARD REJECTS GROUP'S PLAN SEEKING SALE OF FIRM SKOKIE ILL MARK CONTROLS CORP SAID ITS BOARD REJECTED PROPOSALS BY A GROUP OF INVESTORS THAT SEEK A POSSIBLE SALE OF THE COMPANY AND THE DISTRIBUTION OF THE PROCEEDS TO SHAREHOLDERS THE MANUFACTURER OF FLOW CONTROL EQUIPMENT SAID EUCALYPTUS INVESTMENTS LTD A CONCERN BASED IN THE BRITISH VIRGIN ISLANDS OWNS 92 OF THE COMPANY'S COMMON STOCK ON OCT 1 EUCALYPTUS ANNOUNCED THAT IT WOULD SOLICIT CONSENTS FOR ITS PROPOSALS FROM SHAREHOLDERS MARK CONTROLS HAS TWICE REBUFFED EUCAPLYPTUS'S OFFERS TO BUY THE COMPANY IN THE LAST OFFER EUCALYPTUS PROPOSED TO ACQUIRE MARK CONTROLS AT THE PRICE OF 965 A SHARE MARK CONTROLS SAID ITS BOARD FOUND THAT PROPOSAL TO BE CONTRARY TO THE BEST INTERESTS OF SHAREHOLDERS MARK CONTROLS SAID THAT ALTHOUGH THE INVESTORS ARE CLAIMING THAT THE LIQUIDATION OF THE COMPANY WILL PERMIT STOCKHOLDERS TO REALIZE THE MAXIMUM VALUE OF THEIR SHARES THEY HAVE OFFERED NO BASIS FOR THEIR ASSERTION THE COMPANY ALSO EXPRESSED CONCERN THAT EUCALYPTUS APPEARS TO HAVE A SERIOUS CONFLICT OF INTEREST IT SAID THE PRELIMINARY CONSENT STATEMENT FILED BY EUCALYPTUS WITH THE SEC EXPRESSLY STATES THAT EUCALYPTUS OR AN AFFILIATE MIGHT BID TO ACQUIRE MARK CONTROLS OR SOME OR ALL OF ITS BUSINESSES IF EUCALYPTUS DOES BID IT WOULD HAVE A STRONG INCENTIVE TO PURCHASE THE COMPANY AT AS LOW A PRICE AS POSSIBLE RATHER THAN SEEKING TO MAXIMIZE RETURNS TO THE OTHER SHAREHOLDERS MARK CONTROLS SAID IT HAS RETAINED DF KING & CO TO ASSIST IN SEEKING CONSENTS FROM HOLDERS IN SUPPORT OF THE BOARD'S DECISION PETER JACULLO AGENT FOR EUCALYPTUS INVESTMENTS SAID HE IS DISAPPOINTED WITH MARK CONTROLS' REJECTION HE SAID EUCALYPTUS HAS PICKED UP A FAIR BIT OF SUPPORT FROM INSTITUTIONAL HOLDERS OF MARK CONTROLS' STOCK INSTITUTIONS OWN ABOUT 60 OF THE STOCK HE SAID 9310110095 931011 TECHNOLOGY SUN MICROSYSTEMS TO ANNOUNCE PLAN TO SELL CHIPS TO HEAD OFF COMPETITION BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL SUN MICROSYSTEMS INC THE BRASH LEADER IN COMPUTER WORKSTATIONS HAS DECIDED TO TRY ITS HAND AT THE SEMICONDUCTOR BUSINESS THE COMPANY IS ANNOUNCING TODAY THAT IT WILL BEGIN SELLING MICROPROCESSORS AND RELATED CHIPS TO OTHER COMPUTER AND ELECTRONICS COMPANIES LARGELY TO HEAD OFF COMPETITION FROM INTEL CORP'S PENTIUM PROCESSOR AND THE POWERPC CHIP PRODUCED BY THE ALLIANCE OF INTERNATIONAL BUSINESS MACHINES CORP APPLE COMPUTER INC AND MOTOROLA INC BUT SOME ANALYSTS THINK THE MOVE MAY BE TOO LATE TO DO MUCH GOOD SUN BASED IN MOUNTAIN VIEW CALIF FOR SEVERAL YEARS HAS DESIGNED CHIPS THAT ARE CRUCIAL TO KEEP ITS OWN DESKTOP COMPUTERS AND MIDRANGE SYSTEMS ABREAST OF THE COMPETITION THE CHIPS ARE MANUFACTURED BY TEXAS INSTRUMENTS INC FUJITSU LTD AND OTHERS SUN HAS ENCOURAGED THE CHIP MAKERS TO FIND OTHER CUSTOMERS IN AN EFFORT TO BUILD A HARDWARE STANDARD AROUND ITS SOCALLED SPARC DESIGN AND ATTRACT A BROAD ARRAY OF SOFTWARE PROGRAMS THAT EFFORT HAS MET WITH MIXED RESULTS SPARC CHIPS HAVE A FOLLOWING AMONG MAKERS OF LARGE COMPUTERS BUT A HIGHVOLUME MARKET FOR SUN CLONE WORKSTATIONS HAS NEVER MATERIALIZED IN PART BECAUSE FEW COMPUTER MAKERS WANT TO COMPETE DIRECTLY WITH SUCH AN AGGRESSIVE COMPANY WE NEVER DID ENOUGH CONCEDED CHET SILVESTRI WHO WILL LEAD THE MARKETING THRUST AS VICE PRESIDENT OF SUN'S SPARC TECHNOLOGY BUSINESS UNIT THE IDEA IS TO ACCELERATE THE PROCESS BESIDES MICROPROCESSORS MR SILVESTRI'S UNIT WILL SELL COMPANION CHIPS THAT HELP MAKE UP A COMPLETE COMPUTER SYSTEM IT ALREADY SELLS CIRCUIT BOARDS CONTAINING SUCH CHIPS AND WILL LICENSE DESIGNS FOR ENTIRE COMPUTERS THE UNIT WILL ALSO GIVE TECHNICAL ASSISTANCE TO HELP USE ITS TECHNOLOGY AS WELL AS PREVIEWS OF PRODUCT DIRECTIONS SUN WILL NOT MANUFACTURE THE CHIPS IT SELLS THE COMPANY WILL BUY THEM FROM SPARC CHIP MAKERS WHICH WILL CONTINUE TO SELL THEIR PRODUCTS INDEPENDENTLY THE COMPANY EXPECTS ITS ONESTOP SHOPPING APPROACH WILL ATTRACT NEW CUSTOMERS PARTICULARLY SMALL COMPANIES WITH LIMITED RESOURCES TO DESIGN COMPUTERS FROM SCRATCH THE SPARC FAMILY IS ALREADY ONE OF THE MOST POPULAR CHIPS BASED ON REDUCED INSTRUCTIONSET COMPUTING OR RISC WHICH IS A TECHNIQUE FOR SIMPLIFYING CIRCUIT DESIGNS TO ATTAIN HIGH SPEED TERRY BENNETT AN ANALYST FOR THE MARKET RESEARCH FIRM INFOCORP IN BEAVERTON ORE ESTIMATES THAT SUN WILL SELL ABOUT 260000 COMPUTERS THIS YEAR OR ABOUT 90 OF THE TOTAL VOLUME OF SPARC CHIPS SHIPPED THAT'S NOT A HUGE NUMBER FOR THE MICROPROCESSOR BUSINESS INTEL BASED IN SANTA CLARA CALIF EXPECTS TO SELL 40 MILLION OF ITS 486 CHIPS FOR PERSONAL COMPUTERS THIS YEAR IT HOPES TO USE THE NEWER PENTIUM CHIP TO EXPAND ITS MARKET INTO SUN'S WORKSTATION TURF MOTOROLA MEANWHILE EXPECTS TO ATTAIN HIGH VOLUMES WITH THE POWERPC AS APPLE USES THAT RISC CHIP IN COMING MACINTOSH SYSTEMS AND IBM PUTS IT IN NEW WORKSTATIONS AND PCS ANOTHER COMPETITOR IS SILICON GRAPHICS INC WITH ITS MIPS MICROPROCESSOR LINE ALL THREE CHIPS ARE FASTER BY SOME PERFORMANCE MEASURES THAN SUPERSPARC A CHIP MANUFACTURED BY TEXAS INSTRUMENTS THAT IS THE FASTEST MEMBER OF THE SPARC FAMILY TO DATE AND THEY ARE LIKELY TO ATTRACT A WIDE ARRAY OF SOFTWARE WITH THOSE ADVANTAGES IT SEEMS UNLIKELY THAT MANY MAJOR MAKERS OF DESKTOP COMPUTERS WILL ADOPT SPARC SOON ANALYSTS SAY I THINK WHAT THEY ARE DOING IS HELPFUL AND PROBABLY ABOUT 18 MONTHS TOO LATE SAID ANDREW ALLISON EDITOR OF RISC MANAGEMENT A NEWSLETTER IN CARMEL CALIF 9310110094 931011 STOCK MARKETS SPAR OVER PROPER HOME FOR BIG COMPANIES NASDAQ RETAINS LARGE FIRMS CONTENDING THAT BIG BOARD ISN'T NECESSARILY TONIER' BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK FREQUENT SPARRING PARTNERS THE NEW YORK STOCK EXCHANGE AND NASDAQ HAVE STEPPED INTO THE RING AGAIN THIS TIME OVER THE SCREENBASED MARKET'S ABILITY TO RETAIN MANY BIG NAME LARGECAPITALIZATION COMPANIES SOME OF THESE NASDAQ COMPANIES WILL LIKELY MOVE TO THE BIG BOARD IN THE NEXT FEW YEARS CONTENDED ROBERT BRITZ VICE PRESIDENT FOR NEW LISINGS AND A CORPORATE LIAISON AT THE NEW YORK STOCK EXCHANGE BY AND LARGE THE LARGER COMPANIES OF NASDAQ TODAY ARE THERE A RELATIVELY SHORT TIME MR BRITZ POINTED TO AMERICAN EXPRESS CO CONNER PERIPHERALS INC LIZ CLAIBORNE INC AND NIKE INC AS EXAMPLES OF COMPANIES THAT STARTED ON NASDAQ AND THEN GRADUATED TO THE BIG BOARD HE DIDN'T SPECIFY WHICH COMPANIES THE EXCHANGE THINKS COULD SWITCH OVER BUT THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WHICH OPERATES AND REGULATES THE NASDAQ MARKET SAID THE ARGUMENT THAT THE BIG BOARD WAS PRESUMABLY TONIER HAS DIMINISHED ACCORDING TO NASD PRESIDENT JOSEPH P HARDIMAN THERE ARE SEVERAL REASONS WHY COMPANIES INCLUDING THOSE WITH LARGECAPITALIZATION LEVELS HAVE REMAINED ON NASDAQ MANY OF THESE COMPANIES STARTED ON NASDAQ WHEN THEY WERE YOUNG AND HAVE GROWN UP WITH OUR MARKET HE SAID THEY ARE COMFORTABLE WITH SCREENBASED MARKETS AS COMPARED TO FLOORBASED MARKETS MR HARDIMAN ADDED THAT COMPANIES ALSO LIKE THE MULTIPLEMARKETMAKING SYSTEM NASDAQ OFFERS THEY LIKE THE LIQUIDITY AND THE DEPTH OF THE CAPITAL THAT THE COMPETING MARKET MAKERS BRING HE SAID BUT COMPARING NASDAQ WITH THE BIG BOARD MIGHT BE THE OLD APPLES AND ORANGES ANALOGY MANY OF THESE COMPANIES VIEW NASDAQ AS A MARKET FOR GROWTH COMPANIES AND THE NYSE AS FOR MORE MATURE COMPANIES MR HARDIMAN SAID THE BIG BOARD CONTENDS THAT SOME OF NASDAQ'S BLUE CHIPS MIGHT HAVE ANOTHER REASON FOR STICKING WITH THE SCREENBASED MARKET THEY ENJOY A CERTAIN PROMINENCE OVER THERE THAT THEY SUSPECT THEY MIGHT NOT ENJOY IF THEY MOVE TO THE LARGEST MARKET IN THE US MR BRITZ SAID THESE COMPANIES APPEAR IN THE MOSTACTIVE BOX DAY IN AND DAY OUT GIVING THEM A HIGH LEVEL OF VISIBILITY NOT SO MR HARDIMAN SAID THE INTELS AND MICROSOFTS ARE WORLDCLASS COMPANIES HE SAID THEY WOULDN'T GET LOST OVER THERE THEIR NAMES ARE SUFFICIENT THE NASD ESTIMATED THAT ABOUT 800 COMPANIES QUALIFY FOR NEW YORK STOCK EXCHANGE TRADING BUT THE BIG BOARD SAID THE NUMBER IS FEWER THAN 400 ONE ARGUMENT THAT HAS BEEN BANDIED ABOUT FOR YEARS IS THAT LISTING ON THE NEW YORK EXCHANGE GIVES MORE INTERNATIONAL EXPOSURE TO COMPANIES INTERESTED IN SNARING FOREIGN INVESTMENT NOT SURPRISINGLY MR BRITZ SAID THIS IS STILL TRUE BUT NASDAQ RETORTED THAT IT HAS MADE INROADS INTO THE INTERNATIONAL CONSCIOUSNESS THROUGH ADVERTISING AND PROMOTION OVERSEAS SOME TRADERS AGREED THESE COMPANIES ARE HAPPY WITH OUR SYSTEM AND I THINK A LOT OF THEM ARE GOING TO STAY WITH IT SAID PATRICK DAVIS MANAGER OF OTC TRADING AT SALOMON BROTHERS INC OUR MARKET HAS GOTTEN SO MUCH ATTENTION IT'S NOT A SECONDTIER MARKET ANYMORE AND NASDAQTRADED COMPANIES ALSO CONCUR WE'VE ALWAYS BEEN A BIG SUPPORTER OF THE NASDAQ BECAUSE THEY'RE HIGH TECH SAID PAM SMALL AN MCI COMMUNICATIONS CORP SPOKESWOMAN SHE ADDED THAT MCI HAS NO PLANS TO MOVE TO THE BIG BOARD THE NASDAQ HAS SUFFICIENT VOLUME AND DOLLARS SHE SAID 9310110093 931011 PEPPERAND SALT I SHOULD TRY IT A SALTFREE DIET WE NEVER KNOW WHEN FICKLE FATE MAY STRIKE TALK ABOUT RUSSIAN ROULETTE TO STOP AND SMELL THE ROSES FAN CLUB REGISTERED DOTERS 9310110090 931011 LEISURE & ARTS BOOKSHELF VIEW FROM FRONT LINES IN WAR AGAINST RAPE BY KAREN LEHRMAN WOMEN THESE DAYS ARE OFTEN SAID TO BE VICTIMIZED BY FASHION DESIGNERS FLIRTING DIRTY JOKES KATE MOSS NUDE PAINTINGS PATRIARCHS AND PLAYBOY THEY'RE CONSIDERED RAPED IF THEY DON'T GIVE WRITTEN CONSENT TO SEX IF THEY CHANGE THEIR MINDS AFTER SEX IF THEY HAVE SEX WITH A MAN IN SEXUAL VIOLENCE OUR WAR AGAINST RAPE MORROW 288 PAGES 23 LINDA FAIRSTEIN CHIEF OF NEW YORK'S SEX CRIME PROSECUTION UNIT SCPU FOR NEARLY TWO DECADES ALSO USES THOSE LOADED WORDS RAPE AND VICTIMIZE QUITE READILY BUT SHE USES THEM TO REFER TO WOMEN FORCED INTO DIRTY TOILET STALLS AND ALLEYS AND VIOLATED BY COMPLETE STRANGERS A SIXYEAROLD GIRL SEXUALLY ASSAULTED BY THE SUPERINTENDENT OF HER APARTMENT BUILDING AN 82YEAROLD WOMAN SEXUALLY VIOLATED AT KNIFEPOINT BY THE MAN WHO WAS WASHING HER WINDOWS JUST WHEN IT SEEMED THAT THESE WORDS HAD BEEN THOROUGHLY TRIVIALIZED HAD BECOME NEARLY LAUGHABLE SYMBOLS FOR EVERYTHING AND ANYTHING SOME FEMINIST THEORISTS DECIDED WASN'T GOOD FOR WOMEN ALONG COMES A BOOK POORLY ORGANIZED AND NOT PARTICULARLY WELLWRITTEN THAT IS DETERMINED TO RESTORE THESE WORDS TO THEIR ORIGINAL MEANING PART MEMOIR PART CRIME REPORT SEXUAL VIOLENCE OFFERS A RATIONAL APOLITICAL LOOK AT HOW WELL THE CRIMINAL JUSTICE SYSTEM CONVICTS RAPISTS AND PROTECTS VICTIMS FROM FURTHER HUMILIATION THOUGH PROBLEMS PERSIST MS FAIRSTEIN REPORTS THAT IT IS NO LONGER FAIR TO SAY THAT THE SYSTEM DOESN'T WORK WHEN MS FAIRSTEIN STARTED PROSECUTING RAPE CASES IN THE MID'70S RAPE WAS RARELY EVEN TRIED IN COURT BUT AFTER MUCH FEMINIST PRESSURE MAJOR LEGISLATIVE CHANGES INTRODUCING RAPE SHIELD LAWS AND ELIMINATING THE CORROBORATION AND EARNEST RESISTANCE REQUIREMENTS HELPED BOOST CONVICTION RATES AT LEAST IN NEW YORK NATIONWIDE THEY REMAIN DISTURBINGLY LOW MS FAIRSTEIN REPEATEDLY PRAISES THE DOGGEDNESS OF DISTRICT ATTORNEY ROBERT MORGENTHAU AND SUGGESTS THAT THE REST OF THE COUNTRY COULD LEARN FROM THE SCPU PUBLIC ATTITUDES HAVE BEEN HARDER TO CHANGE THAN THE LAW QUESTIONS STILL ARISE ABOUT THE VICTIM'S ATTIRE WHAT SHE HAD TO DRINK WHAT SHE WAS DOING THERE AT THAT HOUR IN MS FAIRSTEIN'S FIRST RAPE CASE A 24YEAROLD WALL STREET BROKER HAD BEEN RAPED BY A KNIFEWIELDING STRANGER WHO FORCED HIS WAY INTO HER APARTMENT ARGUING THAT THE VICTIM WAS REALLY A PROSTITUTE THE DEFENSE ATTORNEY DANGLED HER LEOPARDSKIN BIKINI UNDERWEAR BEFORE THE JURY ASKING IT TO CONSIDER THE TYPE OF WOMAN WHO WOULD PURCHASE AND WEAR SUCH CLOTHING NOT A BUSINESSWOMAN NOT A LADY HE INSISTED BUT A HOOKER THE JURY DISAGREED NOWHERE IS THE PUBLIC'S WILLINGNESS TO CONFUSE SEXUAL VIOLENCE WITH CONSENSUAL ACTIVITY MORE APPARENT THAN IN THE AREA OF ACQUAINTANCE RAPE ALTHOUGH MORE THAN HALF OF REPORTED RAPES ARE ASSAULTS BY MEN WHO WERE KNOWN TO THEIR VICTIMS MANY PEOPLE STILL DON'T BELIEVE THAT A WOMAN CAN BE RAPED BY SOMEONE SHE KNOWS MANY DAS AROUND THE COUNTRY PARTICULARLY IN SMALLER JURISDICTIONS REFUSE TO EVEN PROSECUTE THESE CASES BELIEVING THEM UNWINNABLE THE MUDDLE SOME FEMINISTS HAVE MADE OF THE TERM DATE RAPE HAS ONLY EXACERBATED THE PROBLEM ALL TOO OFTEN JURORS ARE SWAYED BY THE PHYSICAL APPEARANCE OF THE MAN ON TRIAL MS FAIRSTEIN WRITES THAT DURING THE MONTHS OF THE ROBERT CHAMBERS PREPPY MURDER TRIAL WHICH SHE PROSECUTED MUCH OF THE PUBLIC CONVERSATION INCLUDING COMMENTS FROM AMONG THE MORE THAN 400 PROSPECTIVE JURORS WHO WERE INTERVIEWED CONCERNED WHETHER SOMEONE WITH CHAMBERS'S LOOKS AND MIDDLECLASS BREEDING COULD COMMIT THE KIND OF VIOLENT MURDER WITH WHICH HE WAS CHARGED INDEED A PERSISTENT MYTH IS THAT RAPISTS ARE PHYSICALLY UNATTRACTIVE UNEDUCATED AND FROM THE LOWER SOCIOECONOMIC CLASS ACTUALLY THE ONLY SHARED TRAIT SEEMS TO BE THAT THEY THRIVE ON THE INTENTIONAL HUMILIATION DEGRADATION AND POWERLESSNESS OF THE VICTIMS THEY CHOOSE TO STRIKE MS FAIRSTEIN'S DESCRIPTIONS OF RAPISTS AS UNEQUIVOCALLY MOTIVATED BY ANGER AND POWER NEVER IN THE LEAST BY DESIRE SEEM A LITTLE DUBIOUS BUT AT LEAST SHE INSISTS ON CALLING RAPE A CRIME OF SEXUAL VIOLENCE SHE'S ALSO HONEST ENOUGH TO ADMIT THAT FALSE REPORTS DO OCCUR BUT AT ABOUT THE SAME RATE AS IN ANY OTHER CATEGORY OF CRIME 5 IDEOLOGY HAS ALSO NOT HINDERED HER PERCEPTION OF RAPE AS A HIDEOUS ABERRATION ALL MEN ARE NOT POTENTIAL RAPISTS AND ALL HETEROSEXUAL SEX IS NOT RAPE TEDIOUS DESCRIPTIONS OF OFFICE PROCEDURE COULD EASILY HAVE GIVEN WAY TO MORE SOLID INFORMATION ON WHAT IS KNOWN ABOUT RAPE AND RAPISTS ONE THING WE DO KNOW IS THAT SEX OFFENDERS ARE THE MOST RECIDIVIST OF CRIMINALS WE ALSO KNOW THAT RAPE REMAINS THE MOST UNDERREPORTED OF CRIMES MORE THAN HALF OF SEX OFFENSES GO UNREPORTED MISTRUST IN THE SYSTEM IS STILL CLEARLY WIDESPREAD MS FAIRSTEIN ARGUES CONVINCINGLY THAT ONLY WHEN REPEAT OFFENDERS WHOSE BEHAVIOR CANNOT BE MODIFIED START RECEIVING LIFE IMPRISONMENT WITHOUT PAROLE WILL BOTH OF THESE PROBLEMS SHOW SIGNIFICANT SIGNS OF IMPROVEMENT MS LEHRMAN IS WRITING A BOOK ON POSTIDEOLOGICAL FEMINISM 9310110089 931011 INTERNATIONAL TOYOTA REDUCES ITS PROJECTIONS FOR SALES IN JAPAN BY MASAYOSHI KANABAYASHI STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO TOYOTA MOTOR CORP JAPAN'S LARGEST CAR MAKER TRIMMED ITS FORECAST FOR DOMESTIC AUTOMOBILE SALES AS AN AFFILIATED COMPANY ANNOUNCED THAT IT EXPECTS A LOSS FOR THE FIRST TIME IN 39 YEARS HIT BY THE ECONOMIC DOWNTURN TOYOTA SAID IT NOW EXPECTS TO SELL 212 MILLION CARS AND TRUCKS IN JAPAN IN THE CURRENT YEAR THE REVISION MARKED THE SECOND TIME IN A YEAR THAT THE COMPANY HAS DOWNGRADED ITS FORECAST AS JAPAN'S ECONOMY WEAKENED EARLIER THIS YEAR TOYOTA CUT ITS ESTIMATE TO 22 MILLION UNITS FROM 232 MILLION IN 1992 TOYOTA SOLD 223 MILLION CARS AND TRUCKS IN JAPAN A COMPANY SPOKESMAN SAID THE MARKET SITUATION IN JAPAN IS WORSE THAN INITIALLY EXPECTED THERE IS NO SIGN OF RECOVERY IN SIGHT YET HE SAID IN THE FIRST NINE MONTHS OF THIS YEAR TOYOTA SOLD 158 MILLION CARS AND TRUCKS IN THE DOMESTIC MARKET DOWN 7 FROM A YEAR EARLIER TOYOTA CURRENTLY ISN'T PLANNING TO REVISE THE EARNINGS FORECAST IT MADE AT THE END OF AUGUST ALREADY FACTORING IN LOWER SALES TOYOTA PREDICTED ITS UNCONSOLIDATED PRETAX PROFIT WILL PLUMMET 30 TO 200 BILLION YEN 189 BILLION FOR THE YEAR ENDING JUNE 30 1994 FROM 28645 BILLION YEN 27 BILLION IN THE PRIOR FISCAL YEAR MEANWHILE TOYODA MACHINE WORKS LTD AN AFFILIATE OF TOYOTA MOTOR SAID IT EXPECTS A PRETAX LOSS OF 5 BILLION YEN FOR THE YEAR ENDING MARCH 31 IT BLAMES THE SWING TO A LOSS ON A SHARP DECLINE IN MACHINE TOOL SALES THE COMPANY WHICH IS 21 OWNED BY TOYOTA ALSO WILL CUT ITS DIVIDEND FOR THE CURRENT FISCAL YEAR TO SIX YEN PER SHARE FROM NINE YEN A YEAR EARLIER A SPOKESMAN SAID THE COMPANY EARLIER THIS YEAR PROJECTED PRETAX PROFIT OF 15 BILLION YEN DOWN FROM 256 BILLION YEN A YEAR EARLIER A TOYODA MACHINE WORKS SPOKESMAN BLAMED DEPRESSED CAPITAL SPENDING PARTICULARLY IN THE AUTOMOBILE INDUSTRY FOR THE POOR SALES THE COMPANY ALSO REVISED DOWNWARD ITS SALES ESTIMATE FOR THE CURRENT FISCAL YEAR TO 130 BILLION YEN FROM 16185 BILLION YEN A YEAR EARLIER ITS INITIAL SALES ESTIMATE WAS 150 BILLION YEN TOYOTA SAID IT ISN'T LOWERING ITS US SALES FORECAST FOR THE CURRENT YEAR WE'RE ON TRACK TO SELL MORE THAN A MILLION VEHICLES A SPOKESMAN SAID 9310110088 931011 WHO'S NEWS UNITED STEELWORKERS NOMINATE BECKER WITHOUT OPPOSITION AS UNION PRESIDENT BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH GEORGE BECKER A LABORER WHO WORKED HIS WAY UP THROUGH THE UNITED STEELWORKERS' RANKS WAS NOMINATED WITHOUT OPPOSITION TO SUCCEED LYNN WILLIAMS AS UNION PRESIDENT NEXT MARCH UNION INSIDERS HAD LONG PREDICTED MR BECKER WOULD GET THE JOB THE 64YEAROLD HAS WORKED CLOSELY WITH MR WILLIAMS FOR 15 YEARS MOST RECENTLY AS THE UNION'S VICE PRESIDENT FOR ADMINISTRATION MR WILLIAMS WHO IS 69 AND WILL RETIRE WAS CLEARLY GROOMING HIM FOR THE POST BUT WHILE THE TWO MEN ARE CLOSELY LINKED THEY PRESENT SHARPLY CONTRASTING STYLES MR WILLIAMS IS A GLOBETROTTING INTELLECTUAL WITH A DEGREE IN ECONOMICS WHO JOINED THE UNION AS AN ORGANIZER MR BECKER IS A SECONDGENERATION FACTORY WORKER WHO GOT HIS FIRST JOB IN A STEEL MILL AS A TEENAGER WORKING SUMMERS AND HOLIDAYS DURING THE LABOR SHORTAGE BROUGHT ON BY WORLD WAR II HE LATER SERVED AS A MARINE AND WENT TO TRADE SCHOOL TO STUDY AIRCRAFT ENGINE MECHANICS HE WAS 35 BEFORE HE WENT TO WORK FULLTIME FOR THE UNION WHILE MR WILLIAMS IS SMOOTH AND INTROSPECTIVE MR BECKER IS PLAINSPOKEN AND COMES ACROSS AS AN ACTIVIST BUT DESPITE THE APPARENT DIFFERENCES THE SELECTION OF MR BECKER ENSURES CONTINUITY RATHER THAN DRASTIC SHIFTS AT THE HELM OF THE 565000MEMBER UNION THIS ISN'T GOING TO BE A CASE OF ME COMING IN WITH A BUNCH OF NEW IDEAS SAID MR BECKER BECAUSE I'M ALREADY PART OF THIS ADMINISTRATION AND MY IDEAS ARE ALREADY BEING IMPLEMENTED IF ANYTHING WILL BE DIFFERENT HE ADDED IT WILL BE THE POLITICAL CLIMATE FACING ORGANIZED LABOR MR BECKER SAID THE CLINTON ADMINISTRATION APPEARS COMMITTED TO REVERSING THE EROSION OF UNION POWER THROUGH LABOR LAW REFORM THIS GOVERNMENT IS GOING TO MAKE THE PLAYING FIELD MORE FAIR HE SAID MOST UNION OFFICIALS SAY MR BECKER HAS HIS JOB CUT OUT FOR HIM THE UNION LOST NEARLY HALF OF ITS MEMBERSHIP OVER THE PAST DECADE AND BADLY NEEDS TO ORGANIZE WORKERS IN JOBS OUTSIDE OF STEEL SOME OF US BELIEVE BECKER WILL BE LESS OF A DARLING OF PEOPLE IN WASHINGTON AND THE MEDIA SAID ONE UNION OFFICIAL WHO ASKED NOT TO BE IDENTIFIED ACCORDING TO THIS VIEW IT WAS MR WILLIAMS'S SMOOTH ALMOST PROFESSORIAL STYLE THAT HELPED GAIN THE UNION RESPECT MR WILLIAMS HAS BEEN A FREQUENT SPEAKER AT COLLEGE SEMINARS AND ON TELEVISION PROGRAMS BUT OTHERS SEE MR BECKER'S LESS POLISHED EXTERIOR AS AN ASSET MANY FACTORY WORKERS FOR INSTANCE MAY FIND IT EASIER TO IDENTIFY WITH MR BECKER THAN WITH MR WILLIAMS THIS COULD GIVE THE UNION AN EDGE AS IT PUSHES TO ORGANIZE WORKERS IN NEW LOCATIONS BUDDY DAVIS A CLOSE FRIEND OF MR BECKER'S WHO RECENTLY RETIRED AS THE UNION'S DISTRICT DIRECTOR IN ST LOUIS SAID GEORGE MAY NOT BE AS ARTICULATE OR SMOOTH AS LYNN IS BUT GEORGE WILL BE STRONGER IN THE DAYTODAY RUNNING OF THE UNION 9310110087 931011 GENETICALLY ALTERED TOXIN SHOWS HOPE AS ARTHRITIS TREATMENT FOLLOWING TESTS BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL A GENETICALLY ENGINEERED TOXIN SHOWED PROMISE IN EARLY TESTS IN A HANDFUL OF RHEUMATOID ARTHRITIS PATIENTS RESEARCHERS IN BOSTON SAID THAT NINE OF 19 PATIENTS IMPROVED AFTER A TREATMENT THAT USES DIPHTHERIA TOXIN TO KILL THE WHITE BLOOD CELLS BELIEVED TO INFLAME THE JOINTS OF ARTHRITIS SUFFERERS THE GENETICALLY ENGINEERED TOXIN CALLED A FUSION TOXIN WAS DEVELOPED BY SERAGEN INC BASED IN HOPKINTON MASS THE BIOTECHNOLOGY COMPANY IS TRYING TO DEVELOP FUSION TOXINS ITS MAJOR TECHNOLOGY FOR TREATING CANCERS AND AUTOIMMUNE DISEASES INCLUDING ARTHRITIS AND DIABETES THE SUBSTANCE IS CREATED BY TAKING THE DEADLY TOXIN MADE BY THE DIPHTHERIA BACTERIUM AND ERASING THE PART THAT CAUSES THE POISON TO STICK TO NORMAL CELLS THE SECTION IS REPLACED WITH MOLECULES THAT BIND TO PROTEINS ON THE SURFACE OF THE WHITE BLOOD CELLS THAT ARE INVOLVED IN THE INFLAMMATION OF JOINTS THE WHITE BLOOD CELLS INGEST THE FUSION TOXIN AND ARE KILLED IN A REPORT PUBLISHED IN THE JOURNAL ARTHRITIS & RHEUMATISM KATHRYN LEA SEWELL AND COLLEAGUES AT BETH ISRAEL HOSPITAL IN BOSTON SAID THEY GAVE THE 19 ARTHRITIS PATIENTS HOURLONG INTRAVENOUS INFUSIONS OF THE FUSION TOXIN DAILY FOR FIVE TO SEVEN DAYS MOST OF THE PATIENTS WERE HOSPITALIZED FOR THE EXPERIMENT AFTER TRYING DIFFERENT DOSAGES THE RESEARCHERS FOUND THAT NINE PATIENTS HAD A SUBSTANTIAL OR MEANINGFUL RESPONSE TO THE TREATMENT IN THE HIGHER DOSAGES THE NUMBER OF TENDER AND SWOLLEN JOINTS DECLINED MORNING STIFFNESS DIMINISHED AND GRIP STRENGTH INCREASED SUCH RESPONSES BEGAN TO SHOW UP WITHIN TWO WEEKS OF TREATMENT AND LASTED FOR FOUR TO 29 WEEKS ADVERSE EFFECTS WHICH OFTEN DIED AWAY AFTER THE INITIAL TREATMENT INCLUDED FEVER NAUSEA AND LOSS OF APPETITE THE TRIAL HOWEVER DIDN'T INCLUDE PATIENTS BEING GIVEN PLACEBO OR SHAM INFUSIONS TESTING OF ARTHRITIS TREATMENTS ARE PLAGUED BY THE FACT THAT PATIENTS OFTEN IMPROVE IF THEY THINK THEY ARE RECEIVING A POWERFUL NEW THERAPY EVEN IF THEY AREN'T THUS DEFINITIVE TRIALS OF THERAPIES INCLUDE A GROUP OF PATIENTS GIVEN A PLACEBO TO SEE HOW POWERFUL THIS EFFECT IS SERAGEN SAID THAT A PLACEBOCONTROLLED STUDY OF THE FUSION TOXIN IN 45 ARTHRITIS PATIENTS HAS SHOWN THAT THOSE GETTING THE FUSION TOXIN FARED BETTER THAT THOSE RECEIVING A PLACEBO THE COMPANY ALSO SAID IT HAS BEGUN THREE CLINICAL TRIALS IN ARTHRITIS PATIENTS OF AN IMPROVED VERSION OF THE FUSION TOXIN 9310110086 931011 MANAGER'S JOURNAL CEOS CAN STRIKE TOO BY HUGH AARON IT'S ONLY A TEMPORARY INVENTORY ADJUSTMENT SAID MY PARTNER OUR SMALL PLASTICS MATERIALS COMPANY DEEP INTO THE FIRST QUARTER OF ITS WORST SLUMP EVER WAS LOSING MORE THAN 50000 A MONTH THE PLASTICS INDUSTRY HAS NEVER HAD A YEAR WITHOUT GROWTH HE INSISTED NEVERTHELESS I FELT WE WERE IN FOR A LONGTERM SLOWDOWN BASED ON ECONOMIC REPORTS I HAD BEEN READING I URGED THAT WE IMMEDIATELY CUT OUR GENEROUS SIXFIGURE SALARIES IN HALF LAY OFF WORKERS AND OFFICE STAFF AND ELIMINATE SEVERAL MIDDLE MANAGEMENT POSITIONS MY PARTNER REFUSED HE SAID HE NEEDED A BIG SALARY TO MAINTAIN HIS LAVISH LIFESTYLE THE COMPANY SHOULD KEEP ITS WORKERS OFFICE STAFF AND SUPERVISORS INTACT FOR THE REBOUND THAT WAS JUST AROUND THE CORNER AND I WAS OVERREACTING SEEING ONLY THE GLOOMY SIDE OF REALITY HE WAS QUITE RIGHT TO OBSERVE THAT I FELT PANIC ALL MY PERSONAL WEALTH WAS TIED UP IN THE COMPANY WHILE MOST OF HIS WAS INVESTED IN OTHER ASSETS I FEARED THAT AT THE RATE OUR HIGHLY LEVERAGED COMPANY WAS HEMORRHAGING WE WERE HEADED FOR BANKRUPTCY WERE THIS TO HAPPEN HE'D HARDLY FEEL IT UNTIL HARD TIMES HAD SET IN WE HAD GOTTEN ALONG WELL ALTHOUGH AS A SALES MANAGER HE WAS A CARELESS ADMINISTRATOR HIS CONGENIAL PERSONALITY CHARMED OUR CUSTOMERS HE MADE ERRORS SUCH AS OCCASIONALLY QUOTING PRICES TO OUR DISADVANTAGE BUT THE COMPANY WAS DOING SO WELL THAT I LOOKED THE OTHER WAY IT TOOK A REVERSAL FOR OUR OPPOSING VIEWS OF REALITY TO SURFACE AND STRAIN OUR RELATIONSHIP I CUT MY SALARY UNILATERALLY HOPING THAT THIS WOULD PERSUADE HIM TO DO LIKEWISE IT DIDN'T WORK I REFUSED TO GRANT A WAGE RAISE TO A VICE PRESIDENT HE COUNTERMANDED MY ORDER I LAID OFF KEY WORKERS PAINFUL THOUGH IT WAS HE HIRED THEM BACK TO SWEEP FLOORS AND PAINT THE WALLS OF THE PLANT THE 5050 DIVISION OF OWNERSHIP LAY AT THE ROOT OF OUR PROBLEM BOTH OF US HAD VETO POWER WE HAD REACHED A STALEMATE A THIRD MONTH DECEMBER TRADITIONALLY A BAD MONTH PASSED THE LOSS WORSENED I WAS AT MY WITS' END TRYING TO FIND A WAY TO PERSUADE MY PARTNER TO AGREE TO ACT SUDDENLY IT OCCURRED TO ME TO APPLY THE WEAPON UNIONS USE WHEN AT AN IMPASSE WITH MANAGEMENT I WOULD STRIKE OF COURSE I KNEW I WOULD BE LEAVING THE COMPANY TOTALLY IN MY PARTNER'S HANDS AND WOULD RISK CONTINUING LOSSES BUT WHAT DID I REALLY HAVE TO LOSE IF NO ACTION WAS TAKEN WASN'T DISASTER INEVITABLE WITHOUT TELLING ANYONE AT THE COMPANY OF MY INTENTIONS I DISAPPEARED FOR TWO WEEKS WHEN AFTER SEVERAL DAYS MY PARTNER CALLED MY WIFE TOLD HIM IN ACCORDANCE WITH MY INSTRUCTIONS THAT I WAS AWAY AND COULDN'T BE REACHED HE CALLED AGAIN THE FOLLOWING WEEK ONLY TO RECEIVE THE SAME REPLY ACTUALLY I WAS AT HOME CATCHING UP ON READING LISTENING TO MUSIC AND PLAYING WITH MY CHILDREN WHO WERE DELIGHTED TO HAVE THEIR FATHER ON HAND ON THE THIRD MONDAY AFTER MY DEPARTURE I APPEARED AT THE OFFICE TO LEARN WHAT DAMAGE HAD BEEN DONE AS I FEARED THINGS HAD GONE FROM BAD TO WORSE NOT ONLY WERE OUR LOSSES MOUNTING BUT MORALE HAD REACHED A NEW LOW UNDER MY PARTNER THERE WAS A LACK OF DIRECTION I SENSED IT THE MOMENT I WALKED INTO THE PLANT AND HAD IT CONFIRMED BY SEVERAL OF THE EMPLOYEES HEARING THAT I WAS ON THE PREMISES MY PARTNER ENTERED MY OFFICE DISTRAUGHT WHERE HAD I BEEN WHY DID I DESERT HIM AND LEAVE HIM WITH ALL THE RESPONSIBILITY OF RUNNING THE BUSINESS I REPLIED THAT I HAD TAKEN A VACATION SO THAT HE COULD HAVE A FREE HAND TO RUN THINGS THE WAY HE WISHED HE SAID HE WAS RELIEVED TO HAVE ME BACK I ADVISED HIM THAT I HAD ONLY DROPPED IN TO SEE HOW THINGS WERE AND THAT I WOULD BE LEAVING AGAIN HE PROTESTED THIS WAS THE REACTION I HAD HOPED FOR AT LAST I HAD THE UPPER HAND AH THE POWER OF THE STRIKE WEAPON I NOW KNEW IT FROM BOTH SIDES TO KEEP ME THERE ALTHOUGH I WAS BLUFFING AND REALIZED I COULDN'T STAY AWAY PERMANENTLY HE AGREED TO DO THE THINGS I RECOMMENDED EARLIER BUT I DEMANDED MORE I INSISTED THAT HE STEP ASIDE AND LET ME RUN THE COMPANY MY WAY MEANWHILE I WOULD SEEK TO RAISE THE FUNDS TO BUY HIM OUT IT WAS OBVIOUS WE WERE INCOMPATIBLE THAT OUR WAYS AND VIEWS OF LIFE WERE AT ODDS HE AGREED BUT WHERE WOULD I GET THE MONEY I HAD NO IDEA I SAID I HAD NO CASH OF MY OWN AND THE COMPANY UNDER THE PREVAILING CIRCUMSTANCES WOULD APPEAR TO BE A BAD RISK TO ANY INVESTOR HE GAVE ME THREE MONTHS I SOON LEARNED THAT THE STRIKE WAS ONLY THE FIRST AND PERHAPS EASIEST STEP TO GAIN MY ENDS IF I FAILED IF CONDITIONS WORSENED SURELY MY PARTNER WOULD MOVE BACK IN IN THOSE THREE MONTHS I RESTORED STABILITY AND REDUCED LOSSES BY SWIFTLY ENACTING THE DOWNSIZING I HAD INITIALLY PROPOSED BUT THE STRIKE HAD UNFORESEEN CONSEQUENCES SEVERAL KEY EMPLOYEES FEELING INSECURE IN THE CLASH BETWEEN THE PARTNERS MADE PLANS WITHOUT MY KNOWLEDGE TO LEAVE THE COMPANY AND ESTABLISH THEIR OWN ALTHOUGH THE WORKERS AND THE REMAINING STAFF PERFORMED AS ALWAYS THEIR ALLEGIANCE TO ME WAS CLEARLY TENTATIVE AS THEY WAITED TO SEE WHICH PARTNER WOULD WIN MEANWHILE MANY OF OUR CUSTOMERS HEARING RUMORS OF OUR INTERNAL STRUGGLE WANTED ASSURANCE THAT WE COULD SERVICE THEM AS ALWAYS I WAS RACING AGAINST TIME AFTER EXPLORING A DOZEN AVENUES FOR FUNDS INSURANCE COMPANIES SBICS PRIVATE INVESTORS AND LARGE CITY BANKS THAT SOUGHT CONFISCATORY INTEREST RATES OR CONTROL I FOUND THE SOLUTION IN AN EMPLOYEE STOCK OWNERSHIP PLAN OR ESOP AS SOON AS A PERMANENT SINGLE LEADER WAS ESTABLISHED WE BECAME A MORE EFFICIENT IF SMALLER ORGANIZATION AND WENT ON TO NEW HEIGHTS MR AARON WRITES FROM HIS HOME IN BELFAST MAINE 9310110085 931011 LEISURE & ARTS TELEVISION VARIATIONS ON THE THEME OF TRAUMA BY ROBERT GOLDBERG TO BE HONEST IT WAS THE STORY ON 20/20 THAT FINALLY GOT TO ME THE ONE ABOUT THE GUY WHOSE WIFE SLICED OFF HIS PRIVATES WITH A KITCHEN KNIFE A BREATHY BARBARA WALTERS OFFERED UP THE TALE A SLEEPING HUSBAND AN IRATE WIFE A SLASH IN THE NIGHT BLOOD ON THE SHEETS AND THE DOCTORS WHO EVENTUALLY SEWED EVERYTHING BACK TOGETHER PAIN IS EVERYWHERE ON TELEVISION NOW PAIN MAYHEM DISASTER AS NEWS AS FICTION AS FACTION THERE ARE NO NEW REALITY SHOWS IN THE FALL LINEUP ONLY A PROLIFERATION OF UPSCALE NEWS MAGAZINES ONE FOR EACH DAY OF THE WEEK YET THESE POLISHED SERIOUS NEWS SHOWS ARE NOW INCREASINGLY HARD TO DISTINGUISH FROM THEIR LURID COUSINS BOTH SEEM TO SPECIALIZE IN TEARS IT WAS AMTRAK'S WORST TRAGEDY INTONED THE PROMO FOR DAY ONE LAST WEEK WHAT WAS IT LIKE RELIVE THE HORROR MOMENT BY MOMENT TO RELIVE MORE HORROR THIS WEEK I WITNESS VIDEO OFFERS UP A SWIMMER DROWNING IN THE TREACHEROUS HAWAIIAN SURF RESCUE 911 FOLLOWS TWO SNOWMOBILERS IN MINNESOTA WHO GO CRASHING THROUGH THE ICE AND ARE TRAPPED IN THE FREEZING WATER BELOW AND COPS INTERROGATES A MAN SUSPECTED OF SHOOTING HIS BROTHER AND ANOTHER MAN SUSPECTED OF SHOOTING HIS NEIGHBOR'S DOG THE THEME FOR THE WEEK IS DISASTER OF COURSE DISASTER COMES IN MANY FORMS TAKE DANIELLE STEEL'S MESSAGE FROM NAM' NBC SUNDAY 911 PM EDT AND TUESDAY OCT 19 SAME TIME THIS TWOPART MINISERIES IS A ROMANTIC POTBOILER SET AGAINST THE BLOOD AND CARNAGE OF VIETNAM DANIELLE STEEL MEETS OLIVER STONE FOR THIS BODICERIPPER WITH THE SMELL OF BURNING NAPALM THE DRAMA STARTS IN GEORGIA IN 1964 WHERE A POOR LITTLE RICH GIRL NAMED PAXTON ANDREWS JENNY ROBERTSON POUTS AND SULKS AND EXCLAIMS I'M SORRY TO DISAPPOINT YOU MOTHER I ALWAYS SEEM TO DO THAT APPARENTLY PAXTON WANTS TO GO OFF TO BERKELEY NOT SWEET BRIAR HER MOTHER RUE MCCLANAHAN FROWNS SEVERELY HER DEAD FATHER BEAMS DOWN FROM THE PHOTO ON THE MANTLE GOODBYE PAPA SHE WHISPERS WISH ME LUCK PACKING HER BAGS FULL OF ENOUGH CLOTHES AND CLICHES TO LAST HER FOR THE NEXT FOUR HOURS SHE SETS OFF TO THE WEST COAST SHE'LL MEET A HANDSOME YOUNG MAN WHO JUST HAPPENS TO BE RICH SHE'LL BURN A FEW POTS TO SHOW SHE CAN'T COOK AND EVENTUALLY AFTER STARING AT A TYPEWRITER FOR 15 SECONDS OR SO SHE'LL DECLARE HERSELF A WRITER A JOURNALIST OF COURSE WE NEVER SEE HER WRITE A SINGLE SENTENCE SO WE JUST HAVE TO TAKE HER WORD FOR IT AS A YOUNG CAREER WOMAN PAXTON CONTINUES TO RUN INTO OPPOSITION FROM THE FOLKS BACK HOME YOU INSIST ON GOING YOUR OWN WAY HER BROTHER HARRUMPHS YOU AND MOTHER WILL NEVER UNDERSTAND FRETS PAXTON WOMEN FOR 1000 YEARS HAVE BEEN LIVING IMPRISONED LIVES A WOMAN CAN BE ANYTHING SHE WANTS TO BE AND BEFORE HELEN REDDY CAN UNLEASH EVEN ONE CHORUS OF I AM WOMAN HEAR ME ROAR PAXTON IS ON THE ROAD OUR YOUNG HEROINE BELIEVES VIETNAM IS A GOOD CAREER MOVE WHEN SHE GETS THERE IT LOOKS SUSPICIOUSLY LIKE THE OLD MASH SET BUT SHE'LL LEARN SOME LIFE LESSONS HERE ROMANCE WILL BLOOM IN THE MINEFIELDS SHE'LL HOP INTO BED A FEW TIMES SHE'LL SEE SOME SOLDIERS GETTING BLOWN TO BITS AND SHE'LL CATCH THE LAST CHOPPER HOME A SADDER WISER WOMAN MS ROBERTSON DOES HAVE ATTRACTIVE GRETA GARBO EYEBROWS AND YOU CAN'T FAULT THE THEME OF A STRONG WOMAN GOING TO WAR BUT THIS TEARJERKER LURCHES ALONG FROM ONE CRY TO THE NEXT WITHOUT ANY STORY IN BETWEEN TRAUMA COMES IN ANOTHER GUISE THIS WEEK WITH I'LL FLY AWAY THEN AND NOW PBS TONIGHT 810 PM EDT YOU MAY RECALL THAT I'LL FLY AWAY WAS THE FINEST PROGRAM THAT NO ONE SAW A THOUGHTFUL COMPASSIONATE HOURLONG DRAMA ON THE CIVILRIGHTS ERA WHEN IT WAS HEARTLESSLY CUT BY NBC LAST YEAR PBS STEPPED INTO THE BREACH AND SAVED THE SHOW AGREEING TO RERUN THE 38 EPISODES MONDAYS 8 PM EDT CHECK LOCAL LISTINGS AND TO COMMISSION A BRAND NEW TWOHOUR MOVIE THAT SUMS EVERYTHING UP WELL PERHAPS THAT MISSION WAS TOO TOUGH BECAUSE EXECUTIVE PRODUCERS JOSHUA BRAND AND JOHN FALSEY HAVE TURNED OUT A DISAPPOINTINGLY SLIM TWOHOUR HISTORY LESSON A FLASHBACK SURROUNDED BY PLODDING DIATRIBE WHITE PEOPLE DID A REALLY BAD THING DIDN'T THEY A CHILD SAYS AS A SERIES I'LL FLY AWAY NEVER PREACHED IT BROUGHT THE 1950S SOUTH TO LIFE THROUGH THE RESTRAINED DIGNITY OF LILLY HARPER THE HOUSEKEEPER THE GOODHEARTED BEWILDERMENT OF DISTRICT ATTORNEY FORREST BEDFORD AND THE PREJUDICE OF THEIR NEIGHBORS IT WAS A GEM OF QUIET MOMENTS POLISHED BY THE ACTING OF REGINA TAYLOR AND SAM WATERSTON THAT ACTING IS ALWAYS A PLEASURE BUT MY ADVICE IS TO SKIP THIS PAINFULLY SLOW MOVIE AND WAIT UNTIL THE SERIES REVIVAL STARTS NEXT MONDAY ONE BRIGHT NOTE IN A WEEK OF CATASTROPHES COMES FROM THE PIANO MAN BILLY JOEL SHADES OF GREY PBS WEDNESDAY 9 PM EDT CHECK LOCAL LISTINGS IS A PERFORMANCE DOCUMENTARY THAT FOLLOWS JOEL AS HE ASSEMBLES THE SONGS FOR HIS LATEST ALBUM AND TAKES THEM UP ON STAGE BILLY JOEL IS AN AMAZINGLY PROLIFIC POP SONGWRITER WHO UNDERSTANDS BOTH MELODY AND BACKBEAT WHICH MAY BE WHY HE'S ONE OF THE FEW PERFORMERS TO MAKE THE TRANSITION TO MIDDLE AGE GRACEFULLY IT'S FASCINATING TO SEE HIM AT WORK TINKERING WITH DIFFERENT RHYTHMS DIFFERENT WORDS SURE HIS MATERIAL CAN VEER OFF TOWARD THE SACCHARINE SURE THIS DOCUMENTARY CAN FEEL TOO PROMOTIONAL BUT AS PRODUCED BY DAVID HORN IT OFFERS REAL INSIGHT INTO HOW JOEL CRAFTS A TUNE AND HOW HE MAKES IT ROCK SHADES OF GREY IS THE ONE SHOW I WOULDN'T MISS THIS WEEK NOT EVEN FOR A GOOD TRAIN WRECK 9310110084 931011 GM'S US LOSS SAID TO APPROACH 2 BILLION IN '93 COMPANY IN UAW TALKS SEEKS RELIEF IN BENEFITS FOR PENSIONS LAYOFFS BY JOSEPH B WHITE AND NEAL TEMPLIN STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP'S US VEHICLE OPERATIONS ARE HEADING FOR A 2 BILLION LOSS THIS YEAR LARGELY BECAUSE OF UNCOMPETITIVE LABOR COSTS COMPANY OFFICIALS HAVE TOLD BARGAINERS FOR THE UNITED AUTO WORKERS GM BARGAINERS ON FRIDAY PROPOSED THAT THE UAW HELP TO REVERSE GM'S US LOSSES AND SALVAGE UNION JOBS BY AGREEING TO GIVE THE COMPANY RELIEF ON FUTURE PENSION COSTS LAYOFF BENEFITS AND WAGES IN GM'S PARTS OPERATIONS UAW NEGOTIATORS ARE EXPECTED TO DELIVER THEIR COUNTERPROPOSALS TODAY AFTER TAKING THE WEEKEND OFF THE DECISION NOT TO GRIND THROUGH THE WEEKEND REFLECTS CONFIDENCE AMONG UAW LEADERS THAT A SETTLEMENT CAN BE ACHIEVED THIS WEEK SO FAR THE TALKS AT GM ARE DESCRIBED AS BUSINESSLIKE BUT THE POTENTIAL FOR A CLASH STILL EXISTS OVER THE CHARGED JOBSECURITY AND PENSION ISSUES THE MAGNITUDE OF GM'S US AUTOMOTIVE LOSS WHICH THE COMPANY HASN'T PREVIOUSLY DISCLOSED IS A HOT ISSUE IN THE TALKS GM NEGOTIATORS HAVE ARGUED TO UAW PRESIDENT OWEN BIEBER AND HIS TOP GM BARGAINER STEPHEN P YOKICH THAT THE UNION SHOULD JOIN GM STOCKHOLDERS AND SALARIED WORKERS IN SACRIFICING TO PUT GM'S UNPROFITABLE US OPERATIONS BACK IN THE BLACK BEFORE THE CURRENT RECOVERY IN US VEHICLE SALES STALLS CLEARLY AT STAKE IN THE TALKS ARE THE FUTURE SIZE AND SHAPE OF THE LARGEST SINGLE PRIVATE EMPLOYER AND ONE OF THE LARGEST TRADE UNIONS IN THE US GM OFFICIALS HAVE TOLD UAW OFFICIALS THEY ARE WEIGHING PLANS TO SELL ADDITIONAL VEHICLEPARTS OPERATIONS THAT EMPLOY SOME 20000 UAW WORKERS IF THE COMPANY CAN'T ACHIEVE SIGNIFICANT LABOR COST REDUCTIONS GM'S PLANS TO IMPROVE EFFICIENCY COULD ELIMINATE A FURTHER 65000 UAW JOBS BY 1996 GM WANTS THE UAW TO AGREE TO A LARGE EARLYRETIREMENT PROGRAM AND THEN GIVE GM LATITUDE TO TRANSFER LAIDOFF WORKERS DISTANCES GREATER THAN 50 MILES TO FILL OPEN JOBS AT OTHER PLANTS THE COMPANY ALSO WANTS THE RIGHT TO NEGOTIATE LOWER WAGES FOR WORKERS AT UNCOMPETITIVE PARTS FACTORIES THE COMPANY IS SEEKING A LIMIT TO HOW LONG IT MUST PAY FULL WAGES TO WORKERS IDLED BY PLANT CLOSINGS ON PENSIONS THE COMPANY WANTS THE UAW TO AGREE TO BEND THE PATTERN CONTRACT ALREADY NEGOTIATED AT FORD MOTOR CO AND ACCEPT TERMS THAT WOULD AVOID A BIG INCREASE IN GM'S HUGE UNFUNDED PENSION LIABILITY ONE ARGUMENT GM HAS ADVANCED IS THAT UAW WAGES AND BENEFITS HAVE NEARLY DOUBLED TO 42 AN HOUR IN 1992 FROM 2260 AN HOUR IN 1984 WHILE THE AVERAGE US MANUFACTURING WORKER'S WAGES AND BENEFITS ROSE TO 1617 AN HOUR FROM 1260 IN THE PERIOD GM STOCKHOLDERS MEANWHILE HAVE SEEN ONLY 68 ANNUAL RETURNS ON THEIR INVESTMENTS IN THE PAST DECADE COMPARED WITH A 155 RETURN FOR THE S&P 500 INDEX ACCORDING TO PAINEWEBBER ANALYST STEPHEN J GIRKSY UAW OFFICIALS REJECT THE VIEW THAT BLUECOLLAR WORKERS SHOULD SACRIFICE MORE TO HELP GM REGAIN COMPETITIVENESS WOULD YOU RATHER TRADE PLACES WITH SOME GM GYPSY GOING FROM PLANT TO PLANT OR WOULD YOU RATHER BE ROGER SMITH THE RETIRED GM CHAIRMAN ONE UAW OFFICIAL ASKED GM'S CURRENT CHIEF EXECUTIVE JACK SMITH IS UNDER PRESSURE FROM GM'S OUTSIDE DIRECTORS NOT TO CAVE IN TO PROVISIONS OF THE UAWFORD PACT THAT CALL FOR FATTENING PENSIONS BY AN AVERAGE OF 13 OVER THREE YEARS GM DIRECTORS FEAR THEY COULD OPEN THEMSELVES TO ATTACK FROM SHAREHOLDERS IF THEY AGREE TO A DEAL THAT COULD SWELL GM'S UNFUNDED PENSION LIABILITY TO A STAGGERING 25 BILLION FROM 14 BILLION EARLIER THIS YEAR GM'S OTHER CONCERN IS PROPOSED FEDERAL LEGISLATION THAT WOULD FORCE THE COMPANY TO SIPHON MORE CASH AWAY FROM NEW PRODUCT PROGRAMS INTO THE PENSION TRUSTS IF WE DON'T GET A HANDLE ON THIS PROBLEM WE'RE HEADED FOR AN ECONOMIC BREAKDOWN EVEN MR GOODWRENCH CAN'T FIX REP JJ PICKLE THE TEXAS DEMOCRAT WHO IS CHAIRMAN OF A HOUSE OF REPRESENTATIVES SUBCOMMITTEE ON PENSION ISSUES SAID IN A STATEMENT LAST WEEK REP PICKLE SUPPORTS RECENTLY INTRODUCED LEGISLATION THAT WOULD FORCE FASTER ACTION BY COMPANIES TO FULLY FUND PENSION TRUSTS THE PENSION ISSUE IS TRICKY THOUGH BECAUSE GM HAS MORE THAN 46000 HOURLY WORKERS WHO ARE ELIGIBLE TO RETIRE IF THESE OLDER WORKERS WERE TO RETIRE IT WOULD PUT GM A BIG STEP CLOSER TO ITS GOAL OF CLOSING A COST DISADVANTAGE COMPARED WITH FORD OF 2000 A VEHICLE THAT GAP IS A MAJOR REASON WHY GM'S US VEHICLE OPERATIONS REMAIN DEEP IN THE RED DESPITE BIG IMPROVEMENT FROM A YEAR AGO ANALYSTS SAY GM'S US AUTOMOTIVE OPERATIONS HAD AN ESTIMATED NET LOSS OF MORE THAN 4 BILLION IN 1992 MOVING A LARGE PERCENTAGE OF THOSE WORKERS TO THE RETIREMENT ROLLS WOULD BE CONSIDERABLY CHEAPER FOR GM THAN SIMPLY LAYING THEM OFF THAT IS BECAUSE PAYING PENSION BENEFITS COSTS JUST 60 OR 65 OF WHAT PAYING UNEMPLOYMENT BENEFITS DOES GM HAS PAID OUT ABOUT 335 BILLION IN JOBLESS BENEFITS OVER THE PAST THREE YEARS PAYING RETIREMENT BENEFITS TO THE SAME NUMBER OF WORKERS INSTEAD WOULD HAVE SAVED WELL OVER 1 BILLION 9310110083 931011 PIERRE CARDIN PLACES HIS FASHION EMPIRE ON THE SALES RACK FRENCHMAN SAYS HE HAS GOTTEN MANY OFFERS FOR THE GROUP BUT IS IN NO HURRY FOR DEAL BY CHARLES FLEMING STAFF REPORTER OF THE WALL STREET JOURNAL PARIS PIERRE CARDIN SAID HIS FASHION AND PERFUME EMPIRE IS FOR SALE BUT SAID HE'S IN NO HURRY TO GIVE UP HIS BUSINESS INTERESTS SPEAKING AFTER A NEWS CONFERENCE FRIDAY TO ANNOUNCE A POTENTIALLY CONTROVERSIAL DISTRIBUTION DEAL FOR CARDIN PERFUMES THE 70YEAROLD MR CARDIN SAID HE WAS FACED WITH MANY OFFERS FOR HIS GROUP I DON'T NEED TO SELL BUT I AM FOR SALE HE SAID MR CARDIN OVERSEES A BUSINESS WITH ANNUAL SALES OF SOME 12 BILLION FRENCH FRANCS 211 BILLION AND WITH INTERESTS IN ABOUT 130 COUNTRIES THE GROUP'S INTERESTS RANGE FROM RESTAURANTS AND HOTELS TO CLOTHES FURNITURE BOUTIQUES FASHION ACCESSORIES AND PERFUMES MUCH OF MR CARDIN'S BUSINESS COMES FROM LICENSING HIS INITIALS FOR MYRIAD ITEMS FASHION AND OTHERWISE TO THE DEGREE THAT HE HAS BEEN CRITICIZED FOR CHEAPENING WHAT WAS ONCE A SPARKLING BRAND NAME MR CARDIN HAS NO CHILDREN IS NOT MARRIED AND HAS NEVER IDENTIFIED A LIKELY SUCCESSOR ASKED ABOUT THE FUTURE OF HIS GROUP MR CARDIN SAID I THINK I'LL DIE ONE DAY I'M CONTEMPLATING WHAT TO DO THE BUSINESSMAN WHOSE REPUTATION AS A DESIGNER WAS FORGED DURING THE 1960S DIDN'T IDENTIFY ANY POTENTIAL BUYERS BUT SUGGESTED THAT HE WOULD BE VERY DEMANDING OF WHOMEVER PURCHASED THE GROUP I'VE NEVER HAD BANKERS OR FINANCIERS AROUND ME IF I'D WORKED WITH BANKERS IN THE PAST I WOULDN'T BE PIERRE CARDIN TODAY HE SAID MR CARDIN ALSO SAID HIS GROUP HAD AGREED TO SELL ITS PERFUMES THROUGH FRANCE'S CARREFOUR SA DISCOUNT RETAIL CHAIN THE MOVE COULD STIR CONTROVERSY IN FRENCH RETAILING CIRCLES BY PUTTING A TRADITIONALLY UPMARKET PRODUCT ON SALE THROUGH A HIGHVOLUME LOWMARGIN SALES NETWORK INSTEAD OF USING SPECIALIST COSMETIC SHOPS OR BIG DEPARTMENT STORES MR CARDIN SAID A BIG NAME IN HIGH FASHION STEPPING INTO MASS RETAILING MIGHT SHOCK SOME PEOPLE BUT I'M USED TO MAKING WAVES HE ADDED THAT HE HOPED TO DO FOR PERFUME WHAT HE HAD DONE FOR FASHION IN 1960 AT THAT TIME HE WAS THE FIRST MEMBER OF THE FRENCH HIGHFASHION GUILD A SELECT AND JEALOUSLY GUARDED CLUB TO PUT A LINE OF READYTOWEAR CLOTHES ON SALE IN A DEPARTMENT STORE 9310110082 931011 ALCOA'S THIRDQUARTER NET FELL 36 TO 288 MILLION AMID PRICE SLUMP BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH ALUMINUM CO OF AMERICA'S NET INCOME FELL 36 IN THE THIRD QUARTER AND PLUNGED EVEN MORE EXCLUDING SPECIAL ITEMS AMID A DROP IN SHIPMENTS AND A CONTINUING SLUMP IN ALUMINUM PRICES ALCOA REPORTED NET OF 288 MILLION OR 32 CENTS A SHARE COMPARED WITH 453 MILLION OR 52 CENTS A SHARE A YEAR EARLIER SALES DIPPED TO 22 BILLION FROM 24 BILLION BEFORE SPECIAL ITEMS EARNINGS IN THE LATEST PERIOD WERE 102 MILLION OR ABOUT 11 CENTS A SHARE THE ITEMS INCLUDED A CHARGE FOR LAYING OFF WORKERS AT A PLANT IN IOWA AND CREDITS FOR BOTH A REDUCTION IN TAXES RESULTING FROM LOWERTHANEXPECTED EARNINGS AND CHANGES IN THE US CORPORATE TAX RATE THERE WERE NO SPECIAL ITEMS IN THE YEAREARLIER THIRD QUARTER THE RESULTS REPORTED SHORTLY BEFORE THE CLOSE OF TRADING FRIDAY DISAPPOINTED ANALYSTS WHO HAD PREDICTED ALCOA WOULD DO MUCH BETTER ON THE STRENGTH OF ITS HEALTHY OVERSEAS ALUMINA OPERATIONS AND COSTCUTTING EFFORTS THESE RESULTS ARE DEFINITELY A DISAPPOINTMENT SAID THOMAS M VAN LEEUWEN AN ANALYST WITH LEHMAN BROTHERS ALCOA SHARES CLOSED FRIDAY ON THE NEW YORK STOCK EXCHANGE OFF 75 CENTS AT 6775 ALCOA THE WORLD'S LARGEST ALUMINUM COMPANY AND THE ONLY MAJOR US PRODUCER STILL IN THE BLACK BLAMED THE DECLINE IN ITS RESULTS ON LOWER ALUMINUM INGOT SHIPMENTS AND LOWER PRICES ESPECIALLY FOR INGOT AND BEVERAGECAN SHEET METAL OUR PROBLEM IS PRICES PRICES PRICES SAID A COMPANY SPOKESMAN THE PRICE FOR PRIMARY ALUMINUM INGOT THE LINCHPIN FOR THE INDUSTRY HAS DIPPED BELOW 50 CENTS A POUND IN RECENT DAYS DOWN OVER 10 FOR THE YEAR SHIPMENTS BY ALCOA DECLINED TO 605000 METRIC TONS IN THE THIRD QUARTER FROM 675000 METRIC TONS A YEAR EARLIER LARGELY REFLECTING A EFFORT BY ALCOA TO LEAD PRODUCERS IN A VOLUNTARY PRODUCTION CUTBACK THE COMPANY TRIMMED ITS US ALUMINUM PRODUCTION 25 IN THE THIRD QUARTER BUT THE DROP WAS MORE THAN MADE UP FOR BY SURGING EXPORTS FROM THE FORMER SOVIET UNION A METRIC TON EQUALS 220462 POUNDS MR VAN LEEUWEN SAID ALCOA'S RESULTS UNDERSCORE THE SEVERE PROBLEM OF EXCESS SUPPLY FACING THE WHOLE INDUSTRY PUSHING DOWN PRICES AND FORCING MOST US PRODUCERS INTO THE RED RIGHT NOW THE INDUSTRY IS STARING AT A MOUNTAIN OF ALUMINUM INVENTORY HE SAID AND IT WILL TAKE A LONG TIME TO WORK IT OFF BOTH REYNOLDS METALS CO AND ALCAN ALUMINIUM LTD ARE EXPECTED TO REPORT LOSSES FOR THE THIRD QUARTER ALCOA'S RESULTS DAMPED OPTIMISM ABOUT WHEN THE GLOBAL ALUMINUM INDUSTRY WOULD BEGIN ITS RECOVERY LOOKING AT WHAT'S HAPPENING RIGHT NOW WE BELIEVE THE TURNAROUND HAS BEEN DEFERRED TO LATE 1994 OR EVEN EARLY 1995 SAID J CLARENCE MORRISON A METALS ANALYST AT PRUDENTIAL SECURITIES INC 9310110081 931011 ON SPORTS ANOTHER REMARKABLE SEASON BY FREDERICK C KLEIN WHAT KIND OF A BASEBALL SEASON WAS IT A REMARKABLE ONE OF COURSE THEY ALL ARE IT WAS THE YEAR OF THE BAT IN THE MAJOR LEAGUES IN THE NATIONAL LEAGUE WHICH EXPANDED INTO MIAMI AND HITTERFRIENDLY DENVER THE COMBINED BATTING AVERAGE ROSE TO 264 FROM 252 THE YEAR BEFORE WHILE THE HOMERUN TOTAL SOARED TO 1956 FROM 1262 IN THE AMERICAN LEAGUE WHICH DIDN'T EXPAND THE BATTING AVERAGE CLIMBED TO 267 FROM 259 AND THE HOMERUN COUNT TO 2074 FROM 1776 THE PHILADELPHIA PHILLIES FINISHED FIRST IN THE NL EAST AFTER FINISHING LAST IN 1992 THE CHICAGO CUBS HAD THEIR THIRD WINNING SEASON IN THE PAST 21 THE FLEDGLING FLORIDA MARLINS AND COLORADO ROCKIES EACH WON MORE GAMES THAN THE SAN DIEGO PADRES OR NEW YORK METS THE ROCKIES DREW A MAJORLEAGUERECORD 4483350 FANS AT HOME THE MINNESOTA TWINS' DAVE WINFIELD GOT HIS 3000TH HIT MARK WHITEN OF THE ST LOUIS CARDINALS GOT FOUR HOME RUNS AND DROVE IN 12 RUNS IN A SINGLE GAME BO JACKSON OF THE CHICAGO WHITE SOX PLAYED WITH AN ARTIFICIAL HIP AND HIT 16 HOME RUNS JIM ABBOTT THE NEW YORK YANKEES' ONEHANDED PITCHER WHOSE WHOLE CAREER IS REMARKABLE THREW A NOHITTER THE MAJORS GOT THROUGH THE SEASON JUST FINE WITHOUT A COMMISSIONER RAISING THE QUESTION OF WHETHER THEY NEED ONE OTHER REMARKABLE THINGS HAPPENED HERE ARE SOME OF THEM MOST REMARKABLE GAME ON SEPT 12 IN NEW YORK THE METS BEAT THE CUBS 50 WITHOUT A MET INFIELDER RECORDING AN ASSIST THE METS' SID FERNANDEZ STRUCK OUT SIX 20 OUTS WERE MADE ON POPUPS OR FLY BALLS AND ONE CUB WAS THROWN OUT TRYING TO STRETCH A SINGLE NEXT MOST REMARKABLE GAMES THE PADRES AND PHILLIES PLAYED A DOUBLEHEADER IN PHILADELPHIA THAT BEGAN AT 545 PM ON JULY 2 AND ENDED AT 440 AM ON JULY 3 BECAUSE OF RAIN DELAYS THE FIRST GAME DIDN'T FINISH UNTIL 1 AM AND THE SECOND WENT 10 INNINGS ABOUT 1000 OF THE ORIGINAL 54617 FANS STAYED UNTIL THE END MOST REMARKABLE INJURY ON A LARK THE TEXAS RANGERS' 4 MILLIONAYEAR SLUGGER JOSE CANSECO PITCHED THE EIGHTH INNING AGAINST THE RED SOX IN A LOSTCAUSE MAY 29 GAME IN BOSTON HE GAVE UP THREE RUNS ON TWO HITS AND THREE WALKS IN A 151 RED SOX WIN AND TORE AN ELBOW LIGAMENT HE WAS LOST TO THE RANGERS FOR THE REMAINDER OF THE SEASON AND MIGHT MISS PART OF NEXT YEAR TOO MOST REMARKABLE TRIBUTE ON OPENING DAY IN CINCINNATI SOMEONE PLACED BLACK RIBBONS AND A FLORAL WREATH ON THE USUAL FIELDLEVEL SEAT OF REDS OWNER MARGE SCHOTT WHO'D BEEN SUSPENDED FOR THE SEASON FOR MAKING RACIAL AND ETHNIC SLURS MOST REMARKABLE EXAMPLE OF FATHERSON BONDING SAN FRANCISCO GIANTS OUTFIELDER BARRY BONDS AND HIS DAD BOBBY A GIANTS COACH BOTH WERE EJECTED FOR FIGHTING IN THE NINTH INNING OF A MAY 12 GAME AT DENVER MOST REMARKABLE EXHIBITION OF BASE RUNNING TRAILING THE CALIFORNIA ANGELS 65 IN THE EIGHTH INNING OF AN APRIL 17 HOME GAME THE BALTIMORE ORIOLES LOADED THE BASES WITH ONE OUT MIKE DEVEREAUX HIT A FLY BALL TO CENTER FIELD THAT THE ANGELS' CHAD CURTIS TRAPPED JEFF TACKETT WHO'D RUN HALFWAY TO HOME RETREATED TO THIRD BASE THINKING THE BALL HAD BEEN CAUGHT BRADY ANDERSON WHO'D BEEN ON SECOND BASE RAN TO THIRD AS DID CHITO MARTINEZ WHO'D STARTED AT FIRST ANGEL CATCHER JOHN ORTON WHO WOUND UP WITH THE BALL STROLLED TO THE BASE TAGGED ALL THREE RUNNERS AND GOT A DOUBLE PLAY MOST REMARKABLE ADVICE AFTER HE'D WALKED SIX BATTERS IN A THREEINNING SPRINGTRAINING STINT THE PITTSBURGH PIRATES' ROOKIE PITCHER BOB BACKLUND WAS PULLED ASIDE BY THE VETERAN BOB WALK THROW STRIKES EVEN IF THEY HIT HOME RUNS OFF YOU WALK COUNSELED IN HIS NEXT OUTING BACKLUND GAVE UP A HOME RUN TO THE FIRST BATTER HE FACED MOST REMARKABLE BET MILWAUKEE BREWERS MANAGER PHIL GARNER WHO'D SPORTED A MUSTACHE FOR 20 YEARS TOLD A CALLER TO HIS SEPT 16 RADIO SHOW HE'D SHAVE IT OFF IF HIS TEAM GOT FIVE OR FEWER HITS AGAINST ORIOLES PITCHER BEN MCDONALD THE NEXT NIGHT AND THE CALLER SAID HE'D SHAVE OFF HIS IF IT GOT MORE THE BREW CREW GOT THREE HITS IN EIGHT INNINGS OFF MCDONALD AND OFF CAME GARNER'S 'STACHE MOST REMARKABLE HIT CUBS PITCHER GREG HIBBARD A FIVEYEAR VET WHO'D SPENT HIS FIRST FOUR SEASONS IN THE AMERICAN LEAGUE WAS HITLESS IN ALL OF HIS 37 OFFICIAL MAJORLEAGUE ATBATS WHEN HE WENT TO THE PLATE IN THE SIXTH INNING OF AN AUG 8 GAME AGAINST THE CARDINALS IN ST LOUIS HIS DOUBLE DROVE IN THE WINNING RUN IN A 21 CUB VICTORY MOST REMARKABLE THROW AFTER A GAME IN LOS ANGELES METS OUTFIELDER VINCE COLEMAN FLIPPED A VERY LARGE LIGHTED FIRECRACKER TOWARD A GROUP OF AUTOGRAPH SEEKERS IN THE DODGER STADIUM PARKING LOT THREE PEOPLE WERE INJURED TWO OF THEM CHILDREN COLEMAN FACES CRIMINAL CHARGES MOST REMARKABLE PERFORMANCE BY A FAN THE YANKEES TRAILED THE RED SOX 31 AND HAD TWO OUTS AND ONE ON IN THE NINTH INNING OF A SEPT 18 GAME AT NEW YORK PINCH HITTER MIKE STANLEY'S FLY BALL TO LEFT FIELD WAS CAUGHT FOR THE APPARENT FINAL OUT BUT THE PLAY WAS DISALLOWED BECAUSE UMPIRE TIM WELKE HAD CALLED TIMEOUT AFTER A FAN BOLTED FROM THE BOX SEATS TOWARD THE FIELD REPRIEVED STANLEY SINGLED AND THE YANKS RALLIED TO WIN 43 MOST REMARKABLE SIDE TRIP WHILE HIS TEAM WAS PLAYING THE CUBS IN A JULY 7 AFTERNOON CONTEST AT WRIGLEY FIELD REDS PITCHER TOM BROWNING WHO'D PITCHED A FEW DAYS EARLIER LEFT THE PARK IN FULL UNIFORM AND FOR AN INNING JOINED A GROUP WATCHING THE GAME FROM THE ROOF OF AN APARTMENT BUILDING ACROSS THE STREET I HAD FUN HE REPORTED I THINK BASEBALL IS AT ITS PUREST HERE MOST REMARKABLE PITCHING PERFORMANCE THE METS' ANTHONY YOUNG SET A MAJORLEAGUE RECORD BY LOSING 27 STRAIGHT DECISIONS IN A STREAK THAT BEGAN IN APRIL 1992 ENDED IN A JULY 28 GAME AGAINST THE MARLINS AT NEW YORK AND SPANNED 74 APPEARANCES YOUNG 113 IN THE WONLOST COLUMN AT THE TIME HE FINISHED THE SEASON AT 116 WAS MOBBED BY TEAMMATES AND COACHES AFTER HIS WIN AND CHEERED BY FANS MOST REMARKABLE QUOTE METS RELIEF PITCHER JOHN FRANCO AFTER BEING BOOED BY HOME FANS DURING A LATESEASON SLUMP YOU LOSE THREE STRAIGHT AND GET BOOED YOU LOSE 27 STRAIGHT AND GET CHEERED 9310110079 931011 TEXAS NAMES HUNTER INDUSTRY GADFLY TO STATE INSURANCE COMMISSIONER POST BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL TEXAS NAMED ROBERT HUNTER AS THE STATE'S INSURANCE COMMISSIONER THE LATEST AND PERHAPS MOST INFLUENTIAL IN A STRING OF CONSUMER ADVOCATES TO BECOME A TOP INSURANCE REGULATOR AS INSURANCE BECOMES MORE COSTLY AND MORE COMPLICATED IT HAS BECOME A POWERFUL ISSUE IN STATE POLITICS ACROSS THE COUNTRY AND HAS CREATED DEMAND FOR POPULIST INSURANCE COMMISSIONERS EARLIER THIS YEAR MISSOURI NAMED JAY ANGOFF A HUNTER PROTEGE AS ITS COMMISSIONER CALIFORNIA'S JOHN GARAMENDI A POSSIBLE CANDIDATE FOR GOVERNOR IN THAT STATE IS ANOTHER EXAMPLE MR HUNTER 56 YEARS OLD IS CURRENTLY PRESIDENT OF THE NATIONAL INSURANCE CONSUMER ORGANIZATION A GROUP HE FOUNDED IN 1980 WITH SUPPORT FROM RALPH NADER AND TRIAL LAWYERS IN CALIFORNIA OVER THE YEARS MR HUNTER HAS CARVED OUT A PLACE FOR HIMSELF AS THE NATION'S LEADING GADFLY ON INSURANCE MR HUNTER'S BITING WORDS ABOUT THE INSURANCE INDUSTRY ARE REGULARLY FEATURED ON TELEVISION AND IN PRINT AND HE HAS OFTEN ATTACKED SPECIFIC COMPANIES AFTER LAST YEAR'S HURRICANE ANDREW MR HUNTER CALLED FOR A BOYCOTT OF STATE FARM MUTUAL AUTOMOBILE INSURANCE CO AND AMERICAN INTERNATIONAL GROUP INC WHEN THE COMPANIES THREATENED TO RAISE RATES HE WILL BE TAKING OVER ONE OF THE COUNTRY'S LARGEST INSURANCE DEPARTMENTS WITH AN ANNUAL BUDGET OF 45 MILLION AND MORE THAN 1000 EMPLOYEES MR HUNTER WILL BE PAID 150000 MAKING HIM ONE OF THE HIGHEST PAID STATE OFFICIALS IN THE COUNTRY MR HUNTER'S APPOINTMENT REQUIRES THE CONFIRMATION OF THE TEXAS SENATE BUT HE WILL SERVE AS ACTING COMMISSIONER UNTIL CONFIRMED IN AN INTERVIEW HE SAID HE EXPECTS TO START BY NOV 1 BARRING ANY SPECIAL SESSIONS THE TEXAS LEGISLATURE WHICH MEETS EVERY TWO YEARS IS NOT SCHEDULED TO MEET UNTIL JANUARY 1995 MR HUNTER WHO FAVORS REPEAL OF THE INSURANCE INDUSTRY'S ANTITRUST EXEMPTIONS SAID HIS TOP PRIORITY WILL BE TO ENCOURAGE LOWER INSURANCE RATES IN PART BY SPURRING COMPETITION AND ALSO BY USING RATE INFORMATION AVAILABLE TO THE STATE MR HUNTER HAS MADE A CAREER OF BASHING THE INDUSTRY AND NOW HE'LL HAVE TO AT LEAST LISTEN TO IT SAID STEVEN GOLDSTEIN SPOKESMAN FOR THE INSURANCE INFORMATION INSTITUTE IT'S MUCH EASIER TO BE ON THE OUTSIDE AND CAMPAIGN FOR REFORM THAN IT IS TO GOVERN SAID LARRY KIBBEE A SPOKESMAN FOR THE ALLIANCE OF AMERICAN INSURERS WE HOPE HE CONSIDERS SOLVENCY ISSUES TO THE SAME DEGREE HE CONSIDERS CONSUMER ISSUES THERE IS A BALANCE THAT HAS TO BE STRUCK BUT CONSUMER ADVOCATES SAY THE APPOINTMENT WILL BENEFIT INSURANCE POLICYHOLDERS IN THE STATE TEXAS IS REALLY LUCKY TO GET HIM SAID MARY GRIFFEN OF CONSUMERS UNION THE PUBLISHER OF CONSUMER REPORTS MAGAZINE HE IS REALLY ONE OF THE MOST QUALIFIED PEOPLE FOR THE JOB MR HUNTER RAN THE FEDERAL INSURANCE ADMINISTRATION WHICH MANAGES THE FEDERAL FLOOD INSURANCE PROGRAM FROM 1974 TO 1978 HE ALSO SPENT SEVERAL YEARS IN THE INSURANCE INDUSTRY WORKING AS AN ACTUARY 9310110078 931011 SAURER GRUPPE'S SHANGHAI OFFICE ZURICH SAURER GRUPPE HOLDING AG A MAJOR MAKER OF TEXTILE AND EMBROIDERY MACHINERY SAID ITS GERMAN UNIT W SCHLAFHORST AG OPENED A REGIONAL OFFICE IN SHANGHAI THE OFFICE WILL FUNCTION AS A REGIONAL CENTER FOR THE SAURER GROUP IN NORTHEAST ASIA SAURER SAID THE COMPANY SAID THE DECISION TO OPEN AN OFFICE DEMONSTRATES THE GROWING IMPORTANCE OF THE ASIAN MARKET FOR THE SAURER GROUP WHICH IS BASED IN SWITZERLAND SAURER A YEAR AGO SIGNED A COOPERATION AGREEMENT WITH THE CHINESE TEXTILE MACHINERY MAKER SHANGHAI ERFANGJI TO PROVIDE SCHLAFHORST WEAVING SYSTEMS TO THE CHINESE MARKET 9310110077 931011 MARKETING & MEDIA SEVERAL MAJOR MUSIC COMPANIES FACE FTC PROBE OF ALLEGED CD PRICE FIXING BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL SEVERAL MAJOR MUSIC COMPANIES CONFIRMED THEY ARE COOPERATING IN AN APPARENT WIDENING INVESTIGATION BY THE FEDERAL TRADE COMMISSION INTO ALLEGED PRICE FIXING OF NEW COMPACT DISKS THE FTC DECLINED COMMENT AND THE MUSIC COMPANIES PROVIDED SCANT DETAILS EXECUTIVES AT MAJOR RECORD COMPANIES SAID THEY WERE TAKING THE ONGOING INVESTIGATION SERIOUSLY BUT INSISTED THEY HAVE DONE NOTHING IMPROPER AND EXPECT TO EMERGE FROM THE INVESTIGATION UNSCATHED QUESTIONS ABOUT CD PRICING HAVE BEEN RAISED IN THE US AND UK DESPITE THE EXPLOSION IN CD SALES IN THE LAST DECADE SUGGESTED RETAIL PRICES HAVE REMAINED ABOUT THE SAME AND EVEN GONE HIGHER THE LOS ANGELES TIMES REPORTED FRIDAY THAT AN INVESTIGATION INTO USED CD SALES BEGUN LAST SUMMER HAD BEEN EXPANDED INTO A BROADER INVESTIGATION OF POSSIBLE PRICE FIXING AND THAT MAJOR RECORD COMPANIES HAD BEEN ASKED TO SUBMIT BY OCT 18 TWO YEARS WORTH OF DOCUMENTS RELATED TO CD PRICING POLICIES SPOKESMEN FOR MCA MUSIC ENTERTAINMENT GROUP A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO AND FOR TIME WARNER INC'S WARNER MUSIC GROUP CONFIRMED THEY WERE AMONG THE MUSIC LABELS COOPERATING WITH FTC INVESTIGATORS AND HAVE SUPPLIED THE FTC WITH THE TWO YEAR'S WORTH OF DOCUMENTS OTHERS DECLINED COMMENT THE LOS ANGELES TIMES SAID THAT THE FTC ALSO HAD ASKED FOR DOCUMENTS FROM SONY CORP'S SONY MUSIC BERTELSMANN AG'S BERTELSMANN MUSIC GROUP THORN EMI PLC'S EMI MUSIC AND POLYGRAM RECORDS WHOSE PARENT IS 75 OWNED BY PHILIPS ELECTRONICS NV WE ARE COOPERATING FULLY AND ARE CONFIDENT THE FTC WILL CONCLUDE THAT WE HAVE COMPLIED WITH THE LAW IN ALL RESPECTS SAID A SPOKESWOMAN AT WARNER MUSIC GROUP THE FTC HAD ALREADY ACCORDING TO INDUSTRY SOURCES BEEN INVESTIGATING THE DISTRIBUTION ARMS OF FOUR OF THE MUSIC COMPANIES FOR THEIR POLICIES ON THE SALE OF USED CDS BY RETAILERS THE FTC WAS INVESTIGATING WHETHER DISTRIBUTORS VIOLATED ANTITRUST PROVISIONS FOR REFUSING TO UNDERWRITE ADS FOR STORES THAT SELL USED CDS FACED WITH LAWSUITS THE DISTRIBUTORS HAVE SINCE ALTERED THOSE POLICIES AS LONG AS RETAILERS DON'T SPEND THE COOPERATIVE AD DOLLARS ON ADVERTISING USED CDS WHILE SOME RECORD EXECUTIVES PRIVATELY CHARACTERIZED THE FTC INVESTIGATION AS HAVING LITTLE MERIT THEY SAID THEY WOULD COOPERATE FULLY AN EXECUTIVE AT ONE MAJOR LABEL SAID WE AREN'T SURPRISED THEY WANT MORE INFORMATION IT'S PRICING AN OBVIOUS AND SEXY TOPIC BUT WE'VE DONE NOTHING WRONG THERE HAVEN'T BEEN ANY VIOLATIONS THEY AREN'T GOING TO FIND ANY DIRTY LAUNDRY 9310110076 931011 WHO'S NEWS ORANGE & ROCKLAND OUSTS ITS TOP OFFICER AMID CONTROVERSY PEARL RIVER NY ORANGE & ROCKLAND UTILITIES INC ROCKED BY A SCANDAL INVOLVING BRIBERY AND ILLEGAL CAMPAIGN CONTRIBUTIONS BY A FORMER EXECUTIVE OUSTED ITS CHAIRMAN AND CHIEF EXECUTIVE JAMES F SMITH THE DECISION WAS MADE BY THE UTILITY'S INDEPENDENT DIRECTORS SOME OF WHOM HAVE BEEN INVESTIGATING ALLEGATIONS OF ILLEGAL CAMPAIGN CONTRIBUTIONS BY THE COMPANY THE BOARD DIDN'T EXPLAIN ITS ACTION LAST WEEK LINDA WINIKOW A FORMER VICE PRESIDENT FOR CORPORATE COMMUNICATIONS PLEADED GUILTY TO CHARGES OF GRAND LARCENY BRIBERECEIVING AND ILLEGAL CAMPAIGN CONTRIBUTIONS IN A ROCKLAND COUNTY NY DISTRICT COURT PROSECUTORS SAID MS WINIKOW WHO WAS FIRED IN AUGUST AND NAMED IN A CIVIL RACKETEERING SUIT WITH THREE OTHER FORMER EMPLOYEES AGREED TO COOPERATE WITH A CONTINUING CRIMINAL INVESTIGATION SHE WILL BE SENTENCED NEXT SPRING MR SMITH DIDN'T RETURN PHONE CALLS SEEKING COMMENT BUT IN A STATEMENT MR SMITH SAID THE BOARD'S ACTION IS WITHOUT JUSTIFICATION AND FUNDAMENTALLY UNFAIR AND THAT HE INTENDS TO PURSUE HIS RIGHTS UNDER HIS EMPLOYMENT AGREEMENT WITH THE COMPANY HE HAS 30 DAYS TO CONTEST OR CORRECT THE BASIS FOR THE TERMINATION THE COMPANY SAID MR SMITH 56 YEARS OLD REMAINS A DIRECTOR THE CONTROVERSY HAS COMPLICATED THE COMPANY'S RATE CASE FILED EARLIER THIS YEAR LAST WEEK THE UTILITY AGREED TO AN ORDER BY THE PUBLIC SERVICE COMMISSION TO TREAT AS TEMPORARY 3 MILLION IN REVENUE FROM CURRENT RATES THE UTILITY MIGHT BE ORDERED TO MAKE REFUNDS TO CONSUMERS FOLLOWING A COMMISSION INVESTIGATION THE COMMISSION SAID IT WOULD DELAY CONSIDERATION OF THE CASE FOR SIX MONTHS AND IS AUDITING THE UTILITY'S MANAGEMENT LOOKING AT CORPORATE ETHICS AND INTERNAL CONTROLS IN ADDITION THE BOARD NAMED VICTOR J BLANCHET JR AS ACTING CHIEF EXECUTIVE MR BLANCHET 52 IS PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR H KENT VANDERHOEF A DIRECTOR WAS NAMED ACTING CHAIRMAN 9310110075 931011 INTERNATIONAL MEXICO'S LETTERS SHOW TENSION RISING ON NAFTA BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THE MEXICAN GOVERNMENT HAS SENT TWO LETTERS OF PROTEST TO THE US GOVERNMENT IN A RARE DISPLAY OF HOSTILITY THAT ILLUSTRATES HOW RELATIONS ARE BECOMING TENSE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT POLITICAL ANALYSTS CALLED THE LETTERS COPIES OF WHICH WERE OBTAINED BY THIS NEWSPAPER UNUSUAL PARTICULARLY A LETTER ABOUT A CAPITOL HILL HEARING ON MEXICO'S HUMANRIGHTS RECORD THE REACTION FROM THE MEXICAN GOVERNMENT IS AS HOT AS IT EVER HAS BEEN SAID RAYMUNDO RIVA PALACIO A COLUMNIST FOR MEXICO'S LEADING FINANCIAL DAILY EL FINANCIERO THE FREEFORALL IN THE US CONGRESS OVER NAFTA HAS WOUNDED MANY PEOPLE IN MEXICO WHO AREN'T USED TO THE MERCILESS DEBATE THAT CAN OCCUR IN THE US POLITICAL SYSTEM AND WHO VIEW MANY OF THE NAFTA CONCERNS AS VAGUELY RACIST SO THE MEXICAN GOVERNMENT SEEMS TO BE SIGNALING TO THE US THAT JUST BECAUSE IT WANTS A FREETRADE AGREEMENT IT DOESN'T MEAN MEXICO CAN BE PUSHED AROUND ONE OF THE MEXICAN LETTERS ADDRESSES THE PROFOUND CONCERN OF THE MEXICAN GOVERNMENT ABOUT A US BORDER PATROL ACTION CALLED OPERATION BLOCKADE THAT HAS NEARLY QUADRUPLED AGENTS AT THE BORDER BETWEEN EL PASO TEXAS AND CIUDAD JUAREZ MEXICO AND DISRUPTED TRADE THE LETTER SAYS THAT WHILE IT IS WITHIN THE SOVEREIGN RIGHTS OF THE US TO PATROL ITS BORDER THE WAY THE US HAS GONE ABOUT THE OPERATION HAS UNNECESSARILY STIRRED UP ANTIMEXICAN SENTIMENTS THE OTHER LETTER TAKES STRONG OBJECTION TO REMARKS MADE BY A STATE DEPARTMENT ASSISTANT UNDERSECRETARY LATE LAST MONTH ON MEXICO'S HUMANRIGHTS RECORD AT THE US EMBASSY HERE A SPOKESMAN DECLINED TO COMMENT ON THE LETTERS US ATTORNEY GENERAL JANET RENO IS EXPECTED TO MEET TODAY WITH PRESIDENT CARLOS SALINAS DE GORTARI HERE IMMIGRATION SERVICES FALL UNDER HER JURISDICTION IN ITS LETTER THE MEXICAN GOVERNMENT ASKS THAT A MEETING OF A USMEXICO COMMISSION BE HELD QUICKLY ON THE IMMIGRATION MATTER SO THAT THE PROBLEMS CAN BE SETTLED BILATERALLY RATHER THAN UNILATERALLY THE LETTERS HAVE BECOME PUBLIC AT THE SAME TIME THAT PRESIDENT SALINAS ISSUED A STATEMENT TO THE WASHINGTON POST WARNING THAT HE WOULD CONSIDER NAFTA TO BE VOID IF THE US CONGRESS DIDN'T APPROVE IT BY THE END OF THE YEAR MANY CONGRESSMEN HAD BEEN INDICATING THEY DIDN'T THINK THERE WAS ANY RUSH AND SOME HAVE EVEN TALKED ABOUT TRYING TO FIDDLE WITH PARTS OF THE PACT SO THE NORMALLY TACTFUL PRESIDENT SALINAS APPARENTLY DECIDED TO TRY A LITTLE BRINKSMANSHIP MANY IN MEXICO FEEL THAT THEY HAVE ALREADY BEEN ILLUSED FIRST THEY REACHED ONE AGREEMENT WITH PRESIDENT BUSH THEN THEY HAD TO GIVE MORE GROUND IN NEGOTIATIONS WITH PRESIDENT CLINTON 9310110074 931011 INTERNATIONAL WASHINGTON INSIGHT CLINTON'S CAUTIOUS MOVES ON VIETNAM LEAVE US FIRMS FURTHER BEHIND RIVALS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON EACH TIME THE US TAKES A HALFSTEP TOWARD ENDING ITS ECONOMIC EMBARGO OF VIETNAM AMERICAN BUSINESSES JUST FALL FURTHER BEHIND THEIR FOREIGN COMPETITORS THERE THAT'S BECAUSE THE LIMITED MEASURES LEAVE US COMPANIES WITH THEIR HANDS TIED WHILE SENDING A WAKEUP CALL TO ASIAN AND EUROPEAN COMPETITORS TO SEW UP AS MANY DEALS AS POSSIBLE BEFORE THE AMERICANS ARRIVE THIS UNINTENDED CONSEQUENCE REFLECTS PRESIDENT CLINTON'S DEEP AMBIVALENCE TOWARD THE SOUTHEAST ASIAN NATION ON THE ONE HAND MR CLINTON MORE THAN MOST OF HIS PREDECESSORS BELIEVES THERE IS A SEAMLESS WEB BETWEEN STRENGTHENING THE DOMESTIC ECONOMY AND CONDUCTING FOREIGN POLICY ON THE OTHER HAND MR CLINTON WHOSE POLITICAL MANEUVERING ROOM IS LIMITED BECAUSE HE AVOIDED SERVING IN THE VIETNAM WAR IS HESITANT ABOUT MOVING QUICKLY TOWARD RESUMING TIES WHILE SOME US SOLDIERS FROM THAT WAR REMAIN UNACCOUNTED FOR IN THE MEANTIME AMERICANS ARE MISSING OUT ON MAJOR BUSINESS OPPORTUNITIES IRWIN JAY ROBINSON PRESIDENT OF THE VIETNAMAMERICAN CHAMBER OF COMMERCE SAYS THE EUROPEAN CONSORTIUM AIRBUS INDUSTRIE SOLD VIETNAM THREE COMMERCIAL JETLINERS SEVERAL WEEKS AGO AND HOPES TO RECEIVE ORDERS FOR TWO MORE ABOUT TWO MONTHS AGO THREE JAPANESE COMPANIES ANNOUNCED THAT THEY WOULD BUILD A BUS AND TRUCKMANUFACTURING FACILITY IN VIETNAM AND A TAIWAN COMPANY HAS EARMARKED AS MUCH AS 600 MILLION FOR A CEMENT PLANT AND DEVELOPMENT OF AN EXPORTPROCESSING FACILITY LAST MONTH THE ADMINISTRATION LOOSENED THE EMBARGO BY PERMITTING AMERICAN COMPANIES TO BID ON PROJECTS IN VIETNAM THAT ARE FINANCED BY INTERNATIONAL FINANCIAL INSTITUTIONS BUT US COMPANIES ARE AWAITING THE ADMINISTRATION'S REGULATIONS SPELLING OUT PERMISSIBLE AMERICAN PARTICIPATION IN PROJECTS FINANCED BY SUCH INSTITUTIONS IF THE REGULATIONS ARE WRITTEN NARROWLY AS SUCH REGULATIONS CONCERNING VIETNAM HAVE BEEN IN THE PAST IT WILL SIGNAL THAT WASHINGTON ISN'T READY TO PROVIDE MANY OPPORTUNITIES FOR US COMPANIES THE WORLD BANK FOR INSTANCE USUALLY LENDS MONEY FOR ONLY PORTIONS OF PROJECTS THE REGULATIONS WILL HAVE TO MAKE CLEAR WHETHER US COMPANIES MAY BID ON PROJECTS THAT AREN'T FULLY FUNDED BY INTERNATIONAL FINANCIAL INSTITUTIONS THE RULES ALSO WILL HAVE TO SHOW WHETHER AMERICAN COMPANIES MAY BID ON CONTRACTS THAT ARISE FROM INTERNATIONAL AGENCYBACKED PROJECTS EVEN THOUGH THEY AREN'T PART OF THE PROJECTS THEMSELVES WILL US COMPANIES BE ABLE TO BID FOR INSTANCE TO PROVIDE COMPUTER EQUIPMENT NEEDED BY USERS OF AN AIRPORT FACILITY THAT WAS FINANCED BY THE WORLD BANK WITH SUCH QUESTIONS HANGING OVER THEM MOST US BUSINESSES ARE UNENTHUSIASTIC ABOUT THE LATEST EMBARGOLOOSENING OUR MEMBERS ARE VERY DISAPPOINTED THAT THERE HASN'T BEEN EITHER A GREATER LIBERALIZATION OR AN ENDING OF THE EMBARGO BY THE US GOVERNMENT SAYS MR ROBINSON WHOSE ORGANIZATION INCLUDES 43 LARGE US CORPORATIONS AND 18 LAW FIRMS EVERY DAY WE HEAR ABOUT FOREIGN COMPANIES GETTING NEW CONTRACTS AND EVERY DAY VIETNAM IS IN A BETTER POSITION TO AWARD SUCH CONTRACTS LAST WEEK THE INTERNATIONAL MONETARY FUND ANNOUNCED THAT IT WOULD LEND HANOI 223 MILLION TO HELP REBUILD ITS ECONOMY WITH US APPROVAL LAST JULY A GROUP OF NATIONS LED BY JAPAN AND FRANCE PROVIDED VIETNAM WITH 140 MILLION TO HELP CLEAN UP ITS IMF ARREARS AND MAKE IT ELIGIBLE FOR THE FINANCING THE WORLD BANK IS LIKELY TO APPROVE BY YEAR END 300 MILLION FOR PROJECTS IN VIETNAM INVOLVING EDUCATION FACILITIES HIGHWAY REPAIR AND AGRICULTURAL IMPROVEMENTS AN OFFICIAL SAYS TO BE SURE THE ADMINISTRATION MUST PRESS VIETNAM TO CLEAR UP AS MANY CASES AS POSSIBLE INVOLVING MISSING US SOLDIERS ANN MILLS GRIFFITHS WHO HEADS THE NATIONAL LEAGUE OF FAMILIES A MAJOR VIETNAM FAMILIES GROUP COMPLAINS THAT THE ADMINISTRATION IS TRUMPING UP PROGRESS THAT DOESN'T REALLY EXIST SHE SAYS THAT OF 28 SETS OF REMAINS OF US SOLDIERS THAT THE ADMINISTRATION ANNOUNCED LAST SUMMER HAD BEEN RETURNED AT LEAST 19 AND PERHAPS MORE ARE UNIDENTIFIABLE SOME SENIOR PENTAGON OFFICIALS SAY VIETNAM AFTER YEARS OF STONEWALLING FINALLY IS COOPERATING IN THE EFFORT MOREOVER PEOPLE WHO SUPPORT LIFTING THE EMBARGO CONTEND THAT OPENING UP VIETNAM TO AMERICANS WOULD INCREASE THE FLOW OF INFORMATION ABOUT MISSING AMERICANS MR CLINTON'S DILEMMA IS THAT ALL THE QUESTIONS CONCERNING MISSING AMERICANS WILL NEVER BE ANSWERED INDEED ALL SUCH QUESTIONS FROM THE KOREAN WAR STILL HAVEN'T BEEN ANSWERED AT SOME POINT THOUGH HE MUST DECIDE THAT IT IS TIME TO END THE VIETNAM WAR 9310110073 931011 BCCI OFFICIALS PLEAD NOT GUILTY IN UAE ABU DHABI UNITED ARAB EMIRATES AP TOP EXECUTIVES OF THE COLLAPSED BANK OF CREDIT & COMMERCE INTERNATIONAL ON SATURDAY PLEADED NOT GUILTY TO CHARGES OF FORGERY BREACH OF TRUST AND WASTING DEPOSITORS' AND SHAREHOLDERS' FUNDS ELEVEN DEFENDANTS INDICTED IN ONE OF THE WORLD'S MOST SERIOUS BANKING SCANDALS APPEARED FOR THE PRELIMINARY HEARING TWO OTHERS WERE CHARGED IN ABSENTIA THE CASE OPENED AFTER A TWOYEAR INVESTIGATION BY THE GOVERNMENT INTO THE DEALINGS OF THE UNIT OF BCCI HOLDINGS LUXEMBOURG CORP IT IS BEING HEARD BY THE ABU DHABI FIRST INSTANCE FEDERAL COURT A SINGLEJUDGE NOJURY TRIBUNAL AT THE END OF THE TWOHOUR PUBLIC SESSION JUDGE SHIHAB ABDULRAHMAN SCHEDULED THE NEXT HEARING FOR NOV 13 TO ALLOW DEFENSE LAWYERS TO STUDY THE FILES OF THE COMPLICATED CASE 9310110072 931011 RATING AGENCY PUTS SOME PEUGEOT DEBT ON CREDIT WATCH SPECIAL TO THE WALL STREET JOURNAL PARIS S&PADEF A RATING AGENCY AFFILIATED WITH STANDARD & POOR'S CORP OF THE US SAID IT PUT COMMERCIAL PAPER GUARANTEED BY AUTO MAKER PSA PEUGEOT CITROEN SA UNDER CREDIT WATCH WITH NEGATIVE IMPLICATIONS COMMERCIAL PAPER ISSUED BY PSA FINANCIERING NEDERLANDS BV PSA FINANCE INTERNATIONAL NV PEUGEOT COMMERCIAL PAPER GMBH SOFIRA AND GIE PSA TRESORERIE CURRENTLY CARRIES A RATING OF A1 THE AGENCY SAID THE DECISION IS BASED ON PEUGEOT'S WEAKENED FINANCIAL STRUCTURE DUE TO THE DETERIORATION IN THE ACTIVITY OF THE EUROPEAN CAR INDUSTRY WHICH HAS BEEN EXACERBATED BY CURRENCY FLUCTUATIONS EUROPEAN CAR REGISTRATIONS FELL BY 173 DURING THE FIRST SIX MONTHS OF 1993 LAST WEEK PEUGEOT SAID IT SWUNG TO A LOSS OF 112 BILLION FRANCS 1973 MILLION FOR THE FIRST HALF OF 1993 FROM A PROFIT OF 232 BILLION FRANCS A YEAR EARLIER EVEN MORE SEVERE WAS THE DETERIORATION IN PEUGEOT'S OPERATING RESULT WHICH SWUNG TO A LOSS OF 125 BILLION FRANCS FROM A PROFIT OF 38 BILLION FRANCS THIS RESULTED IN A SUBSTANTIAL WEAKENING OF PEUGEOT'S FINANCIAL STRUCTURE NOTABLY THE INCREASE IN NET INDEBTEDNESS TO 192 BILLION FRANCS ON JUNE 30 FROM 157 MILLION FRANCS ON DEC 31 1992 AND 118 BILLION FRANCS ON JUNE 30 1992 THE AGENCY NOTED S&PADEF ALSO POINTED TO THE DETERIORATION IN PEUGEOT'S CASH FLOW WHICH SLUMPED TO FIVE BILLION FRANCS IN THE HALF FROM 78 BILLION FRANCS A YEAR EARLIER PEUGEOT BLAMED CURRENCY VARIATIONS AND A STEEP SLIDE IN THE ENTIRE CAR MARKET FOR ITS WEAK FIRSTHALF PERFORMANCE IT NOTED THAT ON AN UNCHANGED EXCHANGERATE BASIS IT PROBABLY WOULD HAVE BEEN ABLE TO POST A SMALL PROFIT FOR THE PERIOD S&PADEF DID NOTE THAT PEUGEOT MAINTAINED ITS EUROPEAN MARKET SHARE AT 119 AND STRENGTHENED ITS POSITION IN SOME COUNTRIES SUCH AS BRITAIN AND GERMANY IT ALSO POINTED OUT THAT THE AUTO MAKER IS PURSUING EFFORTS TO REDUCE COSTS AND DEVELOP TWO RECENTLY LAUNCHED MODELS 9310110071 931011 READ THEIR LIPS MIME TROUPE SINGS OUT AGAINST A TRADE PACT BY RACHEL ENGLEHART STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NORTH AMERICAN FREE TRADE AGREEMENT IS MORE THAN A TRADE PACT IT'S GOT A NICE BEAT AND YOU CAN DANCE TO IT AT LEAST THAT IS WHAT THE TONY AWARDWINNING SAN FRANCISCO MIME TROUPE WILL DO TODAY ON THE ELLIPSE BEHIND THE WHITE HOUSE IN A MUSICAL PLAY DRAWING RAVE REVIEWS FROM OPPONENTS OF THE PROPOSED TRADE PACT AMONG THE UNITED STATES MEXICO AND CANADA ALTHOUGH MIME IS OFTEN A SILENT ART FORM IN THIS SHOW THERE IS SINGING DANCING AND TALKING THE SHOW CALLED OFFSHORE ASKS THE MUSICAL QUESTION WHAT IS THE PRICE OF GLOBAL INTEGRATION ITS ANSWER THE JOBS OF WORKERS OFFSHORE ISN'T SUBTLE IN ITS MESSAGE ONE OF ITS SONGS CALLED 80/20 HAS THESE LYRICS TWENTY PERCENT LIVE ON DRY LAND WHILE 80 DRIFT OUT TO SEA TWENTY PERCENT HAVE MORE THAN THEY NEED AND 80 GET NEXT TO NOTHING THE SHOW IS BEING DONE OR SO ITS PERFORMERS SAY IN A FUSION OF THEATRICAL STYLES THAT INCLUDES KABUKI AND BEIJING OPERA THE PLAY WHICH THE POLITICAL THEATER COMPANY HAS PERFORMED IN SAN FRANCISCO AND ELSEWHERE ISN'T ONLY ABOUT NAFTA BUT RAISES QUESTIONS ABOUT FREE TRADE WORLDWIDE SAYS TORY GRIFFITH THE SHOW'S PRODUCER THE CHARACTERS INCLUDE A CLINTONAPPOINTED TRADE POLICY AIDE A CHINESE TRADE OFFICIAL AND A JAPANESE TYCOON THE PLOT THE UNITED STATES WILL IMPOSE HIGHER TRADE TARIFFS ON JAPANESE COMPUTER CHIPS IF JAPAN DOESN'T OPEN ITS MARKETS TO AMERICAN RICE IMPORTS IN THE END ACCORDING TO ONE SONG THE WINNERS ARE THE JETSETTING SUSHI EATING CREDITCARD USERS AND ON THE BOTTOM IS THE LABOR POOL THE LOSERS WHILE TODAY'S FREE PERFORMANCE ISN'T ONLY ABOUT NAFTA PEOPLE WHO ARE FIGHTING NAFTA ARE PLEASED WITH OUR SHOW SAYS JOAN HOLDEN THE PLAYWRIGHT SO PLEASED IS ORGANIZED LABOR THAT THE PLAY IS ENDORSED BY THE METROPOLITANWASHINGTON COUNCIL OF THE AFLCIO LABOR IS FIGHTING THE TRADE AGREEMENT CLAIMING IT WILL COST US JOBS NAFTA BACKERS WHICH INCLUDE THE CLINTON ADMINISTRATION COUNTER THAT THE SONG AND DANCE ABOUT LOSING JOBS ARE WAY OFF KEY THAT THE PACT WOULD CREATE MORE US JOBS THAN IT WOULD LOSE TODAY'S SHOW WILL GO ON EVEN THOUGH ITS POLITICAL THEME HAS RAISED SOME LOGISTICAL HURDLES FOR THE TROUPE THE WORLD BANK WOULDN'T LEND US A DESK MS HOLDEN SAYS 9310110070 931011 MEXICO SEEKS BIDS ON PAPER MILLS MEXICO CITY MEXICO'S FINANCE MINISTRY CALLED FOR BIDS ON THREE STATEOWNED PAPER MILLS THOSE INTERESTED IN THE COMPANIES MEXICANA DE PAPEL PERIODICO SA FABRICA DE PAPEL TUXTEPEC SA AND PRODUCTURA NACIONAL DE PAPEL DESTINTADO SA MUST PRESENT QUALIFYING DOCUMENTATION BY OCT 29 TO BANPAIS SA SALES AGENT FOR THE GOVERNMENT POTENTIAL BIDDERS WILL BE REQUIRED TO PUT DOWN A DEPOSIT OF FIVE MILLION NEW PESOS 16 MILLION FOR EACH OF THE COMPANIES IT WISHES TO PURCHASE BIDDERS WILL BE PERMITTED TO TOUR THE PROPERTIES BETWEEN TODAY AND NOV 26 FINAL OFFERS WILL BE DUE DEC 3 AND THE COMPANIES AWARDED BY DEC 10 AT THE LATEST 9310110069 931011 BUSINESS BRIEF SUZUKI MOTOR CORP ENGINES WILL BE SUPPLIED TO ITALIAN MOTORCYCLE MAKER SUZUKI MOTOR CORP A JAPANESE MAKER OF MOTORCYCLES AND AUTOMOBILES SAID IT WILL SUPPLY ITS MOTORCYCLE ENGINES TO AN ITALIAN MOTORCYCLE MAKER BIMOTA SPA FOR THREE YEARS BEGINNING THIS MONTH UNDER THE CONTRACT SUZUKI WILL PROVIDE A TOTAL OF 600 UNITS OF 1100 CUBIC CENTIMETER AND 750 CUBIC CENTIMETER ENGINES THAT ARE CURRENTLY CARRIED ON SUZUKI'S GSXR MODELS SUZUKI SAID ITS ENGINES WILL BE USED ON BIMOTA'S SB6 MOTORCYCLE MODEL WHICH THE ITALIAN MAKER PLANS TO INTRODUCE IN ITALY LATER THIS MONTH 9310110068 931011 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 2 15/16 HIGH 2 13/16 LOW 2 13/16 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 308 30 TO 89 DAYS 317 90 TO 119 DAYS 318 120 TO 239 DAYS 325 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 315 60 DAYS 326 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 259 TWO MONTHS 270 THREE MONTHS 275 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 303 30 DAYS 303 60 DAYS 312 90 DAYS 311 120 DAYS 311 150 DAYS 311 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 3/8 THREE MONTHS 3 3/8 SIX MONTHS 3 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 3375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY OCTOBER 4 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 296 13 WEEKS 308 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 650 60 DAYS 659 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 653 60 DAYS 663 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 9310110067 931011 INTERNATIONAL MINING FIRMS IN CANADA PLAN CUBAN PROJECTS JOINT VENTURE AGREEMENTS COVER MILLIONS OF ACRES SOME CLAIMS CLOUDED BY ROSANNA TAMBURRI STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADIAN MINING COMPANIES ARE PREPARING TO LAUNCH AN EXTENSIVE EXPLORATION EFFORT IN CUBA PICKING UP WHERE THE SOVIETS LEFT OFF AT LEAST A HALFDOZEN CANADIAN COMPANIES HAVE NEGOTIATED JOINT VENTURE ARRANGEMENTS WITH CUBA'S MARXIST GOVERNMENT TO EXPLORE FOR VARIOUS METALS INCLUDING ZINC COPPER AND GOLD THE AGREEMENTS COVER MILLIONS OF ACRES BUT SOME ARE CLOUDED BY CLAIMS BY CUBAN EXILES AND US MINING INTERESTS WHICH OWNED THE CONCESSIONS BEFORE THE CUBAN REVOLUTION THE COMPANIES HAVE BEEN ENCOURAGED BY GEOLOGICAL REPORTS INDICATING THAT CUBA HAS POTENTIALLY RICH MINERAL DEPOSITS DAVID DOAN A GEOLOGIST AT THE US BUREAU OF MINES SAID CUBA PROBABLY HAS THE SAME POTENTIAL FOR GOLD AS THE DOMINICAN REPUBLIC WHERE THE BIG PUEBLO VIEJO GOLD MINE IS LOCATED I WOULD CONSIDER THE WHOLE STRING FROM CUBA TO PUERTO RICO AS ELEPHANT COUNTRY HE SAID GEOLOGISTS FREQUENTLY DESCRIBE LARGE DEPOSITS AS ELEPHANTS CUBA IS PARTICULARLY ATTRACTIVE BECAUSE OF THE ABSENCE OF US COMPETITORS WASHINGTON HAS MAINTAINED A TRADE EMBARGO AGAINST CUBA FOR 30 YEARS THAT PROHIBITS US COMPANIES FROM DOING BUSINESS WITH THE COUNTRY LACK OF COMPETITION IS VERY HIGH ON MY LIST OF REASONS WHY I'M EXCITED ABOUT CUBA SAID MARC HENDERSON PRESIDENT OF REPUBLIC GOLDFIELDS INC TORONTO WHICH HAS JUST COMPLETED NEGOTIATIONS ON A JOINT VENTURE AGREEMENT TO EXPLORE TWO CONCESSIONS IN THE CENTRAL AND EASTERN PORTIONS OF THE ISLAND ANOTHER ATTRACTION IS CUBA'S SKILLED WORK FORCE THE COUNTRY HAS ABOUT 2000 GEOLOGISTS SAID CHARLES PAGE PRESIDENT OF JOUTEL RESOURCES LTD TORONTO MUCH OF THE PRELIMINARY EXPLORATION WORK ALREADY HAS BEEN DONE WITH FINANCIAL SUPPORT FROM THE FORMER SOVIET BLOC CUBA HAS DONE AN EXTENSIVE AMOUNT OF GEOPHYSICAL MAPPING OVER THE PAST 30 YEARS IT MADE OUR CHOICE OF LAND FAIRLY EASY MR PAGE SAID JOUTEL SIGNED AN AGREEMENT TO EXPLORE 12 MILLION ACRES IN THE CENTRAL AND EASTERN PORTIONS OF THE ISLAND ONE OF THE LARGEST CONCESSIONS AWARDED TO A CANADIAN COMPANY MR PAGE SAID JOUTEL PLANS TO INVEST 13 MILLION IN THE FIRST YEAR AND EXPECTS TO START DRILLING LATER THIS MONTH JOUTEL WAS ONE OF THE FIRST CANADIAN COMPANIES TO ENTER INTO A VENTURE WITH THE CUBAN GOVERNMENT THAT PACT WHICH NOW SERVES AS A MODEL FOR OTHER CONCERNS VENTURING INTO CUBA CALLS FOR THE FOREIGN PARTNER TO COVER ALL OF THE EXPLORATION COSTS UNTIL A DEPOSIT IS IDENTIFIED AFTER THAT EXPENDITURES AND REVENUE ARE TO BE DIVIDED 5050 WITH THE CUBAN GOVERNMENT AT LEAST SOME OF THE CONCESSIONS BEING PARCELED OUT TO CANADIAN COMPANIES INCLUDE TRACTS SOLD TO US AND PRIVATE CUBAN INTERESTS BEFORE THE REVOLUTION SAID ALBERTO DIAZMASVIDAL A FORMER CUBAN LAWYER NOW LIVING IN MIAMI MR MASVIDAL SAID HE OWNS RIGHTS TO SEVERAL MINERAL CONCESSIONS THROUGHOUT THE COUNTRY HE ALSO WAS A PARTNER IN A COMPANY THAT HELD OIL CONCESSIONS ALONG CUBA'S NORTH COAST AN AREA THAT HE SAYS IS BEING EXPLORED BY SEVERAL FOREIGN COMPANIES INCLUDING TALISMAN ENERGY INC OF CALGARY AND CANADA NORTHWEST ENERGY LTD A DIVISION OF SHERRITT INC TORONTO SEVERAL AMERICAN MINING INTERESTS HAVE REGISTERED THEIR CLAIMS WITH THE US STATE DEPARTMENT'S FOREIGN CLAIMS SETTLEMENT COMMISSION BUT IT ISN'T KNOWN IF THOSE CLAIMS OVERLAP THE CONCESSIONS AWARDED TO THE CANADIAN COMPANIES DAVID HARQUAIL PRESIDENT OF REDSTONE RESOURCES INC TORONTO SAID MOST OF THE EXPROPRIATED CONCESSIONS APPEAR TO HAVE INCLUDED NICKEL DEPOSITS AS FAR AS WE CAN TELL OUR LAND WAS NEVER HELD UNDER LICENSE HE SAID REDSTONE IS INVOLVED IN A JOINT VENTURE THAT MAINLY WILL BE EXPLORING FOR GOLD BUT IF ONE DAY THERE MUST BE RESTITUTION FOR THE CLAIMS OUTSTANDING IT OUGHT TO BE FROM THE CUBAN GOVERNMENT'S PORTION OF THE VENTURE HE ARGUED THE US TRIES TO DISSUADE FOREIGN INVESTMENT IN CUBA LAST YEAR IT TIGHTENED ITS TRADE EMBARGO WITH LEGISLATION PROHIBITING FOREIGN SUBSIDIARIES OF US COMPANIES FROM DOING BUSINESS WITH THE COUNTRY THE CANADIAN GOVERNMENT ISSUED AN ORDER INSTRUCTING CANADIANBASED COMPANIES TO IGNORE THE US RESTRICTIONS METALL MINING CORP A TORONTOBASED SUBSIDIARY OF METALLGESELLSCHAFT AG OF GERMANY IS PARTICIPATING IN A JOINT FEASIBILITY STUDY ON A PARTIALLY DEVELOPED LEADZINC MINE WEST OF HAVANA FOR METALL THE EMBARGO MEANS ITS US SUBSIDIARY CAN'T BE IN ANY WAY INVOLVED IN THE VENTURE SAID JOHN PURKIS A METALL VICE PRESIDENT SOME CANADIAN COMPANIES FEARING POSSIBLE US REPRISALS ARE LEERY ABOUT DISCUSSING THEIR CUBAN VENTURES SHERRITT FOR YEARS HAS IMPORTED NICKELCOBALT SULFIDES FROM CUBA AS FEEDSTOCK FOR ITS ALBERTA REFINERY IT DIDN'T RETURN PHONE CALLS MIRAMAR MINING CORP VANCOUVER SIGNED TWO JOINT AGREEMENTS TO EXPLORE AND DEVELOP A COPPER AND A GOLD DEPOSIT IN CUBA THE COMPANY HAS ISSUED SEVERAL NEWS RELEASES ABOUT THE PROJECTS BUT IT DECLINED FURTHER COMMENT DESPITE THE RISKS SOME COMPANIES SAY THEY CAN'T PASS UP THE OPPORTUNITY TO MOVE INTO CUBA NOW SHOULD THE US TRADE EMBARGO ONE DAY BE LIFTED AS SOME ANALYSTS HAVE PREDICTED US MINING COMPANIES ARE SURE TO MOVE IN WE CAN'T AFFORD NOT TO GET IN ON THE GROUND FLOOR SAID DAVID HARQUAIL REDSTONE PRESIDENT 9310110066 931011 GLOBAL VIEW CLINTON'S FOREIGN POLICY IS DYING IN SOMALIA BY GEORGE MELLOAN AFTER A WEEK OF VIOLENT POLITICAL REACTION IN THE US TO THE MILITARY DEBACLE IN MOGADISHU ONE THING IS CLEAR PRESIDENT CLINTON'S FRESHLY MINTED UNCENTERED FOREIGN POLICY IS ALL BUT DEAD THE COUNT OF AMERICANS SOLDIERS KILLED IN THE MOGADISHU FIGHT IS AT LEAST 15 AND MAY GO HIGHER BUT THE OUTRAGE OF THE AMERICAN CONGRESS AND PUBLIC HAS BEEN DIRECTED LESS AT THE SOMALIS THAN AT THE WHITE HOUSE TWOTHIRDS OF THE AMERICANS SURVEYED BY GALLUP LAST THURSDAY CALLED THE USUN EFFORT TO PACIFY SOMALIA A FAILURE MR CLINTON REVERSED DEFENSE SECRETARY LES ASPIN'S AUGUST DECISION DENYING THE US QUICK REACTION FORCE ARMOR AND DISPATCHED MORE TROOPS AS WELL BUT MOST AMERICANS DON'T WANT THEIR TROOPS REINFORCED THEY WANT THEM OUT MR CLINTON'S PROMISE TO PULL THE AMERICANS OUT MARCH 31 WAS PROOF THAT HIS AIDES STILL CAN READ THE POLLS AND IT MAY BE A VERY LONG TIME BEFORE THE US PARTICIPATES IN ANOTHER HALFBAKED UN PEACEKEEPING ENDEAVOR THE CORE PLANK OF CLINTON FOREIGN POLICY RELIANCE ON MULTILATERALISM TO DEAL WITH PROBLEMS OUTSIDE US VITAL INTERESTS HAS BEEN SPLINTERED THE CLINTONITES HAD BEEN WARNED ON THESE PAGES AND ELSEWHERE ABOUT THE FOLLY OF TRUSTING MILITARY MISSIONS TO THE GENERALSHIP OF UN SECRETARY GENERAL BOUTROS BOUTROSGHALI THE UN HAS NO MILITARY COMMAND AND CONTROL STRUCTURE UP UNTIL LAST WEEK MR CLINTON WAS BACKING MR BOUTROSGHALI'S DEMAND FOR SUCH A STRUCTURE BUT IF HE IS WISE HE WILL RECONSIDER IT IS DOUBTFUL THAT THE UN WOULD RUN A MILITARY COMMAND ANY MORE EFFICIENTLY THAN IT RUNS ITS OTHER OVERSTAFFED AND OFTEN CORRUPT WORLDWIDE ENTERPRISES WHEN THE BUSH ADMINISTRATION PUT TROOPS INTO SOMALIA LATE LAST YEAR IT WAS FOR THE SOLE PURPOSE OF OPENING UP SUPPLY LINES TO GET FOOD AND MEDICINE TO STARVING SOMALIS THAT MISSION WAS LARGELY SUCCESSFUL AS AFRICAN EXPERT GEORGE BN AYITTEY WROTE ON THESE PAGES LAST THURSDAY HUNGER HAS BEEN RELIEVED HE THINKS IT EVEN COULD HAVE BEEN DONE WITHOUT MILITARY INTERVENTION THE BUSH PLAN WAS TO PULL THE US TROOPS OUT AS SOON AS THE SUPPLY LINES WERE OPENED AND MANY WERE IN FACT WITHDRAWN BUT MR BOUTROSGHALI HAD LARGER AMBITIONS HE WANTED THE TROOPS TO DISARM THE SOMALIS A TASK THAT AMERICANS CAN'T EVEN ACCOMPLISH IN THEIR OWN BIG CITIES WHERE GANG WARFARE BEARS SOME SIMILARITIES TO MOGADISHU MORE GRANDLY HE WANTED TO REORGANIZE SOMALIA POLITICALLY A PROJECT NOT AT ALL WELCOMED BY THE EXISTING POLITICAL LEADERS SO THE NOW NOTORIOUS GENERAL MOHAMMED FARRAH AIDID BEGAN HIS GUERRILLA WAR AGAINST THE UN TROOPS AND MR BOUTROSGHALI AND THE US BEGAN THE PROCESS OF DEMONIZING GENERAL AIDID YET THE UN RESPONDED TO THE AIDID ATTACKS BY RETREATING PULLING ITS TROOPS INTO KEY STRONGPOINTS AROUND THE AIRPORTS AND PORTS AS MR BOUTROSGHALI'S WAR WITH GENERAL AIDID BECAME MORE INTENSE MR CLINTON DISPATCHED THE 1300MEMBER QUICK REACTION FORCE UNDER US COMMAND TO HUNT DOWN AND CAPTURE THE SOMALI WARLORD THE SEARCH FOR AIDID IN MOGADISHU SUDDENLY HAD TWO COMMANDS THE AMERICAN QRF AND THE 29NATION UN FORCE INCLUDING SOME 4000 AMERICANS UNDER THE COMMAND OF TURKISH LT GEN CEVIK BIR THE TURKISH GENERAL IS COMPETENT BUT IN THIS UNWIELDY FORCE TROOPS RESPOND TO GENERAL BIR'S ORDERS ONLY IF THEIR OWN OFFICERS AGREE THE PECULIAR CIRCUMSTANCES OF THIS COMMAND MAY HAVE CONTRIBUTED TO THE OCT 3 QRF TRAGEDY THE QRF FORCES PINNED DOWN BY GUERRILLAS REQUESTED HELP FROM THE UN BUT REINFORCEMENTS DIDN'T ARRIVE UNTIL NINE HOURS LATER ACCORDING TO PRESS REPORTS THAT IS UNBELIEVABLY TRAGIC AMONG THE WARNINGS SOUNDED ABOUT UN POLICY IN SOMALIA WAS ONE WRITTEN FOR THE JOURNAL BY FREELANCE WRITER ALEXANDRA TUTTLE WHO WAS HERSELF KILLED LAST MONTH WHEN ABKHAZ REBELS SHOT DOWN THE PLANE SHE WAS TAKING INTO A WAR ZONE SURROUNDING SUKHUMI GEORGIA SHE GAVE A VERY CLEAREYED ANALYSIS OF THE UN SOMALIA MISSION LAST DECEMBER THE FOREIGN TROOPS WILL BE IN SOMALIA A LONG TIME IF THEY TRY TO CREATE SOME ORDER IN A SOCIETY THAT HAS NO POLITICAL TRADITIONS ON WHICH TO FOUND A GOVERNMENT SHE OBSERVED FORMER US AMBASSADOR TO THE UN JEANE KIRKPATRICK WROTE IN HER SYNDICATED COLUMN IN AUGUST THAT THE US HAD IN EFFECT SURRENDERED ITS FOREIGN POLICY TO THE UN A BODY WHOSE FOIBLES SHE KNOWS ALL TOO WELL SHE WAS NONPLUSSED THAT SECRETARY OF STATE WARREN CHRISTOPHER SEEMED TO REGARD IT AS AN ACCOMPLISHMENT THAT HE WAS TAKING THE LEAD IN PASSING RESPONSIBILITIES TO MULTILATERAL BODIES THERE IS A CERTAIN ACADEMIC SOUND TO THE ADMINISTRATION'S GOALS NOT SURPRISING GIVEN THE PRESIDENT'S LACK OF WITH EITHER MILITARY OR FOREIGN POLICY EXPERIENCE NATIONAL SECURITY COUNCIL DIRECTOR ANTHONY LAKE A FORMER PROFESSOR LAST MONTH DESCRIBED US POLICY AS ONE OF ENLARGEMENT OF THE WORLD'S FREE COMMUNITY OF MARKET DEMOCRACIES THAT HAS A NOBLE RING AND COULD EVEN FORM THE BASIS FOR A COHERENT POLICY BUT THERE IS A CERTAIN HOLLOWNESS TO THE ADMINISTRATION'S CLAIMS THAT IT IS FOSTERING FREE MARKETS WHEN AT THE SAME TIME IT IS PROPOSING TO EFFECTIVELY NATIONALIZE AN INDUSTRY THAT ACCOUNTS FOR 14 OF US GNP HEALTH CARE IT ALSO IS CONSTANTLY PILING NEW FORMS OF REGULATION ON AMERICAN BUSINESS EVEN IF THE CLINTON ADMINISTRATION GAVE ANY EVIDENCE BEYOND LIP SERVICE THAT IT WAS INTERESTED IN PROMOTING ECONOMIC FREEDOM IT IS DOUBTFUL THAT IT WOULD KNOW HOW TO INTRODUCE THE STRUCTURES OF WESTERN MARKET DEMOCRACY INTO SUCH PLACES AS SOMALIA THE IDEA OF DOING IT THROUGH THE UN WITH THE AID OF A MULTINATIONAL MILITARY FORCE CLEARLY WON'T WORK UNLESS THE US PROPOSES TO PUT SUCH PLACES UNDER A MILITARY GOVERNOR THERE IS NO CHANCE OF THAT THE COMPLEXITY OF POLITICAL RESTRUCTURING IS ESPECIALLY EVIDENT IN STRIFETORN PARTS OF THE FORMER SOVIET UNION BUT THE ADMINISTRATION EVEN HAS TOYED WITH TRYING TO EXTEND MULTILATERAL PEACEKEEPING TO THAT REGION THE GEORGIAN STRUGGLE ALONE WOULD OVERWHELM SUCH AN EFFORT IF SOMALIA IS ANY GUIDE ONE EMERGING MILITARY LESSON IS THAT TODAY SMALL ARMIES CAN HAVE A LOT OF FIREPOWER THE SOMALIS BROUGHT DOWN THREE HIGHTECH US HELICOPTERS IN THE MOGADISHU FIGHT WITH THEIR ROCKET LAUNCHERS FOREIGN POLICY WILL NEVER BE EASY FOR PRESIDENT CLINTON SO LONG AS HE REFUSES TO ACKNOWLEDGE THAT IT IS THE MOST IMPORTANT PART OF AN AMERICAN PRESIDENT'S JOB IF HE PERSISTS IN TRYING TO DUMP THAT RESPONSIBILITY ON THE UN IT WILL BRING HIM NOTHING BUT GRIEF 9310110065 931011 IN SOMALIA MY UNHEEDED WARNING COMES TRUE BY SMITH HEMPSTONE AS I PREDICTED ON DEC 1 1992 IN A CABLE TO THE STATE DEPARTMENT LATER LEAKED TO US NEWS & WORLD REPORT IF YOU LIKED BEIRUT YOU'LL LOVE MOGADISHU WHILE SOMALIA'S DEATH TOLL HAS YET TO MATCH LEBANON'S EVERYTHING I PROPHESIED IN THAT CABLE HAS COME TO PASS IN SOMALIA WHERE 15 AMERICAN SERVICEMEN WERE KILLED A WEEK AGO 78 OTHERS WERE WOUNDED AND PERHAPS UP TO EIGHT ARE MISSING APPARENTLY HELD HOSTAGE BY GEN MOHAMMED FARRAH AIDID'S MILITIA WHILE IT IS NICE TO HAVE BEEN RIGHT WHEN EVERYONE ELSE INCLUDING FORMER DEFENSE SECRETARY RICHARD CHENEY WAS WRONG I OF COURSE WOULD NOT HAVE THAT SATISFACTION BOUGHT WITH THE LIVES OF AMERICAN SERVICEMEN AS IS HAPPENING TODAY IN SOMALIA I SUPPORTED INDEED AS AMBASSADOR TO KENYA MADE POSSIBLE OPERATION PROVIDE RELIEF THE AIRLIFT FROM MOMBASA TO SOMALIA OF FOOD AND HUMANITARIAN SUPPLIES THAT BEGAN IN AUGUST 1992 BUT THE LATER UNILATERAL LANDING OF AMERICAN FORCES IN DECEMBER AND OUR PRESENT PARTICIPATION IN NATIONBUILDING THERE WERE DOOMED FROM THE START FOR ONE SIMPLE REASON GEN AIDID DID NOT WANT IT I ASKED THE STATE DEPARTMENT AT THE TIME WHAT COMPELLING NATIONAL SECURITY INTEREST REQUIRED OUR ARMED PRESENCE IN SOMALIA AND WAS NOT GIVEN AN ANSWER THE REASON IS THAT THERE IS NONE THERE CERTAINLY WAS A HUMANITARIAN MISSION TO BE PERFORMED AMERICANS TO THEIR CREDIT CANNOT STAND THE SIGHT ON TELEVISION OF HOLLOWEYED STARVING CHILDREN BUT YOU CAN FIND SUCH CHILDREN IN AT LEAST A HALF DOZEN COUNTRIES AROUND THE WORLD TODAY INCLUDING SUDAN MOZAMBIQUE ANGOLA AND BOSNIAHERZEGOVINA WHERE DO YOU DRAW THE LINE IN ANY CASE THE LINE WAS DRAWN IN SOMALIA'S BEHALF THE QUESTION NOW IS WHAT WE CAN AND SHOULD DO IN THE IMMEDIATE FUTURE IN SOMALIA AND HOW WE SHOULD COMPORT OURSELVES IN COMPARABLE SITUATIONS IN THE FUTURE ON THURSDAY PRESIDENT CLINTON ANNOUNCED HIS INTENTION TO SEND YET MORE US SOLDIERS TO MOGADISHU AT THE SAME TIME LIMITING US INVOLVEMENT THERE TO THE END OF MARCH NEXT YEAR UNFORTUNATELY THESE ACTIONS ARE NOT ENOUGH TO CLEAN UP THE MILITARY AND POLITICAL MESS THAT SOMALIA HAS BECOME OVER THE WEEKEND HOWEVER WITH THE NEWS OF GEN AIDID'S CEASEFIRE OFFER AND THE ARRIVAL IN MOGADISHU OF US ENVOY ROBERT OAKLEY IT BECAME APPARENT THAT ATTEMPTS AT A DIPLOMATIC SOLUTION WERE ALSO UNDER WAY THIS IS A MORE PROMISING TRACK BUT FOR DIPLOMACY TO SUCCEED THE UN APPARENTLY STILL INTENT ON CAPTURING THE GENERAL MILITARILY MUST HELP THE FIRST THING IT OUGHT TO DO IS TO TAKE THAT 25000 REWARD OFF GEN AIDID'S HEAD AND LIFT THE UN WARRANT FOR HIS ARREST THEN IT MUST JOIN US EFFORTS TO GET HIM ON THE NEGOTIATING TRACK IF ONLY TO RETRIEVE OUR MISSING SOLDIERS AND THE BODIES OF OUR DEAD GEN AIDID IS NOT ONE OF NATURE'S NOBLEMEN BUT IF HE DOES NOT BECOME PART OF THE SOLUTION HE WILL REMAIN DEAD OR ALIVE AT LIBERTY OR IN CUSTODY A MAJOR PART OF THE PROBLEM ASIDE FROM THESE DEVELOPMENTS THERE ARE USEFUL THINGS WE COULD BE DOING OUTSIDE OF MOGADISHU TO HELP THOSE SOMALIS WHO WANT AND NEED OUR SUPPORT THE FORMER PROTECTORATE OF BRITISH SOMALILAND IN THE EXTREME NORTHWEST OF SOMALIA IS A CASE IN POINT IT HAS DECLARED ITS INDEPENDENCE FROM THE REST OF SOMALIA ALTHOUGH NEITHER THE US NOR ANY OTHER COUNTRY HAS RECOGNIZED IT THE REPUBLIC OF SOMALILAND AS IT STYLES ITSELF IS LED BY PRESIDENT MOHAMMED IBRAHIM EGAL THE LAST POPULARLY ELECTED PRIME MINISTER OF SOMALIA HE WAS OUSTED IN 1969 BY THE USSUPPORTED TYRANT GEN MOHAMMED SAID BARRE WHOSE FALL FROM POWER IN 1990 LED TO THE PRESENT CHAOS WHILE THE REGION IS DIRTPOOR IT IS BY HORN OF AFRICA STANDARDS RELATIVELY PEACEFUL OTHER REASONABLY PEACEFUL AREAS THAT WOULD WELCOME A US PRESENCE TO IMPROVE ADMINISTRATION AND RAISE LIVING STANDARDS INCLUDE THE EXTREME NORTHEAST AND JUBALAND THE MOST PRODUCTIVE AREA OF THE COUNTRY SOUTH OF MOGADISHU THE UN ALREADY IS COMMITTED TO REMAINING IN SOMALIA UNTIL MARCH 1995 BUT IT IS EXTREMELY UNLIKELY THAT EVEN SUCH A LENGTHY TIMETABLE FOR THE RECONSTRUCTION OF THE SOMALI NATION CAN BE MET IN MY DECEMBER CABLE I ASSERTED THAT IT WILL TAKE FIVE YEARS TO GET SOMALIA NOT ON ITS FEET BUT JUST ON ITS KNEES THE COST MAYBE 10 BILLION ARE THE AMERICAN PEOPLE HAVING PAID A PRICE IN BLOOD WILLING TO SPEND THAT MUCH TREASURE WHEN THE US ECONOMY IS NOT SHALL WE SAY EXACTLY BUOYANT I THINK NOT UNDOUBTEDLY IF THE SITUATION IN SOMALIA HAS NOT IMPROVED BY MARCH THERE WILL BE THOSE WHO WILL STILL OPPOSE AN AMERICAN WITHDRAWAL FROM SOMALIA LARGELY ON THE GROUNDS THAT SUCH A LOSS OF FACE WOULD ERODE AMERICAN PRESTIGE AROUND THE WORLD I DOUBT IT IT SEEMS TO ME THAT AS THE WORLD'S ONE REMAINING SUPERPOWER AND THE RICHEST COUNTRY ON EARTH WE SHOULD NOT BE UNDULY CONCERNED ABOUT LOSS OF FACE IN SITUATIONS LIKE SOMALIA GETTING OUT ALWAYS IS MORE DIFFICULT THAN GETTING IN THE ONLY WAY TO DO IT SIMPLY IS TO DO IT I DON'T THINK THE PUBLIC IS WILLING TO WATCH ANYMORE AS AMERICA'S DEAD ARE DRAGGED THROUGH THE DUST OF MOGADISHU WE STARTED WITH THE BEST OF INTENTIONS BUT EVERYONE KNOWS WITH WHAT THE ROAD TO HELL WHICH SOMALIA VERY MUCH RESEMBLES IS PAVED NEXT TIME WE SHOULD HAVE A CLEAR IDEA OF OUR OBJECTIVE REASONABLE RULES OF ENGAGEMENT AND A RATIONAL NOTION OF THE TIMETABLE AND COSTS FINALLY WE SHOULD GO IN ONLY WHEN OUR PRESENCE IS OVERWHELMINGLY DESIRED AT THE END OF THE DAY DIPLOMACY IS BETTER MADE WITH THE HEAD THAN THE HEART MR HEMPSTONE AMBASSADOR TO KENYA FROM DECEMBER 1989 TO FEBRUARY 1993 NOW TEACHES AT THE UNIVERSITY OF THE SOUTH IN SEWANEE TENN 9310110064 931011 MEDICINE IN THE LAB RESEARCHERS TEST LASER BEAMS TO TREAT SEVERELY BURNED SKIN BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON GOOD NEWS IS CIRCULATING IN A MAKESHIFT BURN RECOVERY WARD AT MASSACHUSETTS GENERAL HOSPITAL THE PATIENT IN CUBICLE 280 IS DOING WELL ACCORDING TO A MEDICAL CHART HANGING ON THE WALL A FEW FEET AWAY THE PATIENT IN 279 IS ALERT AND SEEMS FINE THERE AREN'T ANY FLOWERS OR GETWELL CARDS IN THIS WARD THOUGH THAT'S BECAUSE THE BURN VICTIMS ARE PIGS USED BY RESEARCHERS BECAUSE THEIR SKIN CLOSELY RESEMBLES THE HUMAN EPIDERMIS THE PIGS ARE PART OF A SCIENTIFIC EXPERIMENT IN THE HEALING OF BURNS AS NOTATIONS ON THE PIGS' CHARTS SHOW POWERFUL LASERS ARE BEING USED TO CLEAN UP BURN SITES BEFORE SKIN GRAFTS ARE APPLIED TO THE INJURED AREAS IF THIS NEW TECHNIQUE CONTINUES TO DO WELL IN ANIMAL TRIALS SIMILAR TREATMENT FOR HUMAN PATIENTS COULD FOLLOW IN A FEW YEARS AT FIRST GLANCE USING LASERS TO TREAT BURN WOUNDS SOUNDS LIKE A DREADFUL MISTAKE AFTER ALL THE INTENSELY CONCENTRATED BEAM OF A LASER IS A SOURCE OF BURNING IN ITS OWN RIGHT BUT R ROX ANDERSON HEAD OF A LASER RESEARCH UNIT AT MASSACHUSETTS GENERAL SAYS THAT LASERS' OWN INCENDIARY POWER IF PROPERLY HARNESSED CAN BE A GREAT ASSET LASERS CAN VAPORIZE DEAD TISSUE MUCH MORE PRECISELY THAN A SURGEON'S KNIFE CAN CUT IT AWAY DR ANDERSON EXPLAINS THAT MEANS A LARGE WOUND SITE CAN BE CLEANED UP BY LASER WITHOUT CAUSING MASSIVE BLEEDING AND FLUID LOSS LASER TREATMENT ALSO MAY IMPROVE THE ODDS THAT A SUBSEQUENT SKIN GRAFT WILL TAKE HOLD DR ANDERSON SAYS LAST YEAR MORE THAN 22000 PEOPLE INCURRED SEVERE THIRDDEGREE BURNS THAT REQUIRED HOSPITALIZATION ACCORDING TO HCIA INC A BALTIMORE MD MEDICALDATA CONCERN IN SUCH CASES SURGEONS GENERALLY REMOVE DAMAGED TISSUE WITH INSTRUMENTS THAT ARE LITTLE CHANGED FROM WHAT WAS AVAILABLE 50 YEARS AGO GETTING LASERS OUT OF THE LAB AND INTO THE HOSPITAL THOUGH ISN'T PROVING EASY CHALLENGES HAVE INCLUDED CHOOSING THE RIGHT KIND OF LASER FIGURING OUT HOW TO GUIDE IT ALONG ITS CUTTING PATH AND FINDING QUICK WAYS TO DISTINGUISH HEALTHY FROM DEAD TISSUE THE NEW TECHNOLOGY IS RUNNING INTO BARRIERS INVOLVING ITS PRICE TOO THE LASERS AND GUIDANCE SYSTEMS COULD COST AS MUCH AS 500000 A UNIT IF THEY MAKE IT TO MARKET ALL THE TECHNICAL PIECES ARE COMING TOGETHER SAYS MICHAEL BERNS HEAD OF THE BECKMAN LASER INSTITUTE AT THE UNIVERSITY OF CALIFORNIA IRVINE BUT COSTBENEFIT IS DEFINITELY GOING TO BE AN ISSUE AS FAR BACK AS THE EARLY 1970S RESEARCHERS TRIED USING LASERS TO TREAT BURNS THOSE INITIAL PROJECTS DIDN'T GET FAR MOSTLY BECAUSE AVAILABLE LASERS WERE LOWPOWERED MODELS THAT PROVED TOO SLOW AND IMPRECISE THEN CAME TWO BREAKTHROUGHS IN 1989 A HARVARD GRADUATE STUDENT NAMED JOSEPH WALSH DEMONSTRATED THAT A HIGHPOWERED LASER IF FLICKED ON AND OFF IN A PULSING PATTERN COULD VAPORIZE DAMAGED TISSUE WITHOUT CREATING ITS OWN BURNS THAT WAS WHEN WE KNEW WE HAD A PROJECT SAYS DR ANDERSON IN 1991 A MEDICAL RESIDENT AT MASSACHUSETTS GENERAL HOWARD GREEN DETERMINED THROUGH ANIMAL EXPERIMENTS HOW MUCH BURNED TISSUE SHOULD BE LEFT AS A PROTECTIVE BARRIER BETWEEN THE PATIENT'S HEALTHY TISSUE AND OUTSIDE AIR A BARRIER OF ABOUT 01 MM ABOUT HALF THE THICKNESS OF A SHEET OF PAPER TURNED OUT TO BE JUST ENOUGH TO PREVENT BLEEDING YET THIN ENOUGH TO ALLOW A SUBSEQUENT SKIN GRAFT TO BE ABSORBED BY THE BODY WITH THOSE TWO ISSUES RESOLVED THE MASSACHUSETTS GENERAL RESEARCHERS CONCENTRATED ON HOW TO DISTINGUISH DAMAGED FROM HEALTHY TISSUE THAT'S SURPRISINGLY DIFFICULT BURN EXPERTS SAY WHILE MINOR BURNS QUICKLY TURN RED AND PUFFY SEVERE BURNS OFTEN DON'T LOOK THAT DIFFERENT FROM HEALTHY SKIN AT LEAST FOR THE FIRST FEW DAYS AFTER AN INJURY THE SOLUTION TURNED OUT TO INVOLVE AN INGESTIBLE GREEN DYE THAT WAS APPROVED DECADES AGO FOR LIVER ANALYSIS THAT DYE KNOWN AS INDOCYANINE GREEN IS ABSORBED BY DAMAGED BURN TISSUE BUT NOT BY HEALTHY AREAS SAYS NORMAN NISHIOKA A PHYSICIAN HEADING UP THE MASSACHUSETTS GENERAL BURN PROJECT UNDER INFRARED LASER LIGHT IT'S EASY TO SPOT DAMAGED TISSUE AND THUS TO KNOW WHERE LASER TREATMENT SHOULD BE APPLIED THE NEXT CHALLENGE INVOLVED WAYS TO SPEED UP A LASER'S USE WITH A DOCTOR AT THE CONTROLS IT COULD TAKE AS LONG AS 10 HOURS TO COVER THE BODY OF A SEVERELY BURNED CHILD OR MODERATELY BURNED ADULT THE SOLUTION RESEARCHERS FOUND WAS TO BUILD A COMPUTERAIDED GUIDANCE SYSTEM FOR A LASER QUICKENING ITS SCANNING RATE BY 20FOLD THE MASSACHUSETTS GENERAL RESEARCHERS BELIEVE THEY ARE CLOSE TO HAVING A FOOLPROOF GUIDANCE SYSTEM BUT WITH THE POWER OF THE MACHINE THEY ARE USING A 150WATT INFRARED CARBON DIOXIDE LASER THAT COULD BORE THROUGH A BRICK IN LESS THAN 10 SECONDS IF LEFT ON NONSTOP THEY DON'T WANT TO TAKE ANY CHANCES BEFORE STARTING HUMAN TRIALS SO THE BOSTON RESEARCHERS RECENTLY ASKED LASER SPECIALISTS FROM SANDIA NATIONAL LABORATORIES FOR HELP WITH THEIR GUIDANCE SYSTEM AMONG THE PROBLEMS THE SANDIA TEAM IS BEING ASKED TO SOLVE HOW TO WHISK AWAY SMOKE FROM VAPORIZED TISSUE WITHOUT DISTURBING THE PATIENT OR THE LASER ITSELF IF ALL GOES WELL DR ANDERSON SAYS THE BURNTREATMENT LASER COULD START SHOWING UP IN HOSPITALS IN ABOUT THREE YEARS THAT'S POSSIBLE SAYS ROBERT SHERIDAN A SURGEON AT SHRINERS BURN INSTITUTE IN BOSTON BUT IT'S ALSO POSSIBLE THAT IT COULD BE A LONG TIME BEFORE SUCH LASER TREATMENT BECOMES STANDARD PRACTICE DR SHERIDAN WARNS 9310110063 931011 MARKETING & MEDIA ADVERTISING LOWE IS EXPECTED TO ANNOUNCE ACQUISITION OF WPP GROUP'S SCALI BY KEVIN GOLDMAN LOWE GROUP IS EXPECTED TO ANNOUNCE THIS WEEK ITS LONG ANTICIPATED ACQUISITION OF SCALI MCCABE SLOVES FROM WPP GROUP ACCORDING TO EXECUTIVES CLOSE TO THE NEGOTIATIONS THE EXECUTIVES WHO DIDN'T WANT TO BE IDENTIFIED SAID THE AGREEMENT WHICH HAS BEEN BREWING FOR TWO YEARS CALLS FOR LOWE TO ACQUIRE SCALI MCCABE FOR ABOUT 60 MILLION SCALI MCCABE WILL BE MERGED WITH LOWE & PARTNERS THE NEW YORK AGENCY OF LOWE GROUP WHICH IS OWNED BY INTERPUBLIC GROUP THE NEW AGENCY HASN'T YET BEEN NAMED BUT EXECUTIVES ARE VIRTUALLY CERTAIN THAT THE LOWE NAME AS IN THE POSSIBLE MONIKER LOWE & PARTNERS SMS WILL TAKE THE LEAD THIS IS NO SMALL ACCOMPLISHMENT IN THE EGODRIVEN WORLD OF ADVERTISING ALTHOUGH IT IS UNCLEAR HOW THESE EGOS WILL COEXIST ONCE THE PURCHASE IS COMPLETED AND THE TWO AGENCIES MOVE TO ONE NEW OFFICE IN MIDTOWN MANHATTAN NEXT YEAR EXECUTIVES SAID THAT BOTH AGENCIES ARE PLEASED WITH THE NEW ARRANGEMENT IT IS EXPECTED THAT LOWE EXECUTIVES ANDREW J LANGER CHIEF EXECUTIVE OFFICER JOHN HAYES PRESIDENT AND LEE GARFINKEL VICE CHAIRMAN AND CHIEF CREATIVE OFFICER WILL RETAIN THEIR TITLES AND AUTHORITY MARVIN SLOVES THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SCALI MCCABE IS EXPECTED TO BE NAMED VICE CHAIRMAN OF THE NEW AGENCY REPORTING TO FRANK LOWE CHAIRMAN OF THE LONDONBASED LOWE GROUP SAM SCALI THE LOWPROFILE PRESIDENT AND CREATIVE DIRECTOR IS EXPECTED TO BE NAMED DEPUTY CHAIRMAN MR SLOVES DECLINES COMMENT AND MR SCALI COULDN'T BE REACHED MARVIN SLOVES THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SCALI MCCABE IS EXPECTED TO BE NAMED VICE CHAIRMAN OF THE NEW AGENCY REPORTING TO FRANK LOWE CHAIRMAN OF THE LONDONBASED LOWE GROUP SAM SCALI THE LOWPROFILE PRESIDENT AND CREATIVE DIRECTOR IS EXPECTED TO BE NAMED DEPUTY CHAIRMAN WITHIN THE SPACE OF ONE WEEK LOWE HAS EMERGED AS A MAJOR PLAYER ON MADISON AVENUE AFTER YEARS AS A QUIET MIDSIZE AGENCY WITH ANNUAL BILLINGS OF 300 MILLION AND CLIENTS SUCH AS RJR NABISCO'S GREY POUPON DIJON MUSTARD COCACOLA'S SPRITE AND CITICORP'S CITIBANK LAST WEEK COCACOLA SURPRISED ADVERTISING AGENCIES BY SELECTING LOWE & PARTNERS FOR ITS ESTIMATED 61 MILLION DIET COKE BUSINESS A DAY EARLIER THE AGENCY LEARNED IT HAD WON HEUBLEIN'S 12 MILLION SMIRNOFF VODKA ACCOUNT WITH THE ADDITION OF SCALI MCCABE WHICH REPORTED BILLINGS LAST YEAR OF 185 MILLION SUCH MAJOR CLIENTS AS DAIMLERBENZ'S MERCEDESBENZ OF NORTH AMERICA PERDUE FARMS AND WESTERN UNION WILL JOIN LOWE'S ROSTER THE ADDITION OF MERCEDESBENZ WILL BE NO SMALL FEAT THE OTHER INTERPUBLIC AGENCIES MCCANNERICKSON AND LINTAS WORLDWIDE ARE MAJOR GENERAL MOTORS AGENCIES AND THE SCENARIO OF A SISTER INTERPUBLIC AGENCY WORKING FOR ANY OTHER AUTOMOTIVE MANUFACTURER WAS VIRTUALLY UNTHINKABLE GENERAL MOTORS EXECUTIVES COULDN'T BE REACHED FOR COMMENT BUT MR LOWE HAS BEEN MEETING WITH LOWE AND SCALI MCCABE CLIENTS RECENTLY TO DISCUSS THE MERGER ACCORDING TO TWO EXECUTIVES CLOSE THE PROCESS MR LOWE DECLINED TO COMMENT ON ANY ASPECT OF THE PENDING PURCHASE THE EXECUTIVES SAID THE TWO YEARS OF PUBLIC POSTURING AND ONANDOFF AGAIN NEGOTIATIONS PRODUCED A DEAL THAT IS STRIKINGLY SIMILAR TO THE ONE DRAWN UP BY MR LOWE AND WPP CHIEF EXECUTIVE MARTIN SORRELL NEAR THE BEGINNING OF THE PROCESS THESE EXECUTIVES ADD THAT THERE IS A SLIGHT POSSIBILITY OF COURSE THAT THE AGREEMENT COULD FALL APART AT THE LAST MINUTE ONE EXECUTIVE CLOSE TO THE NEGOTIATIONS SAID LATE FRIDAY THAT IN FACT THE FINAL AGREEMENT WON'T BE SIGNED FOR SEVERAL MORE WEEKS THE SALE BY WPP DOESN'T INCLUDE FALLONMCELLIGOTT A SCALI MCCABE AGENCY BASED IN MINNEAPOLIS WHICH IS EXPECTED TO BE SOLD SEPARATELY IT ALSO DOESN'T INCLUDE SOME REAL ESTATE AND SCALI MCCABE OFFICES IN LOCATIONS PERHAPS INCLUDING GERMANY AND HOLLAND EXECUTIVES SAID THE PURCHASE OF SCALI MCCABE MARKS AN IMPORTANT NEW CHAPTER TO LOWE & PARTNERS AND SPECIFICALLY TO MR LOWE A 51YEAROLD EXECUTIVE WHO STARTED HIS CAREER AS A MESSENGER AT J WALTER THOMPSON'S LONDON OFFICE WHEN HE WAS 18 YEARS OLD IN LONDON MR LOWE IS KNOWN AS A GOOD MANABOUTTOWN A GOOD FRIEND OF PETER MAYLE THE AUTHOR OF THE BESTSELLING A YEAR IN PROVENCE MR LOWE IS FEATURED IN MR MAYLE'S SEQUEL TOUJOURS PROVENCE MR LOWE TAKES DINNER AS SERIOUSLY AS OTHER MEN TAKE POLITICS THE BOOK SAID FRANK IN THE KITCHEN IS LIKE A HOUND ON THE SCENT SNIFFING PEERING INTO BUBBLING SAUCEPANS QUIVERING WITH EXPECTATION THE SMELL OF RICH CASSOULET PUTS HIM IN A TRANCE MR LOWE'S LONDON AGENCY IS KNOWN FOR ITS SASSY ADVERTISING FOR AMONG OTHERS TESCO A SUPERMARKET CHAIN ITS COMMERCIALS FEATURED THE DIMINUTIVE ACTOR DUDLEY MOORE ROAMING THE COUNTRYSIDE SEARCHING FOR FREERANGE CHICKENS LOWE IS ALSO THE AGENCY FOR HEINEKEN BEER IN THE UK AND BOASTS THAT ITS SLOGAN HEINEKEN REFRESHES THE PARTS OTHER BEERS CANNOT REACH IS STILL GOING STRONG AFTER TWO DECADES IN THE UNITED STATES LOWE IS PERHAPS BEST KNOWN FOR INTRODUCING PARDON ME WOULD YOU HAVE ANY GREY POUPON INTO THE POPULAR CULTURE THE ADS FEATURING TWO SNOBBISH BUSINESSMEN IN THEIR ROLLSROYCES WERE EVEN SPOOFED IN THE BOXOFFICE HIT WAYNE'S WORLD BUT LOWE HAS DONE OTHER CLEVER WORK AS WELL WHEN SUPERMAN WAS KILLED OFF LAST YEAR IN THE COMICS LOWE QUICKLY DESIGNED AN AD FOR PRUDENTIAL INSURANCE WHICH FEATURED A TOMBSTONETYPE HEADLINE ANNOUNCING THE SUPERHERO'S DEMISE THE COPY HEY IF IT COULD HAPPEN TO HIM A NEW AD FOR THE UNITED KINGDOM CONGLOMERATE HANSON WHICH BEGAN AIRING ON NETWORK TELEVISION OCT 3 IS A TAKEOFF ON THE CLASSIC FILM CITIZEN KANE IN THE AD A FICTIONAL MULTIMILLIONAIRE NAMED CHARLES KING AS OPPOSED TO CHARLES FOSTER KANE GOES INTO FINANCIAL RUIN BECAUSE HE DIDN'T BUY PRODUCTS MANUFACTURED BY HANSON THE HERO'S FINAL WORDS BEFORE HE DIED HANSON LAST WEEK LOWE'S TOP EXECUTIVES MR LANGER 50 MR HAYES 39 AND MR GARFINKEL 38 GATHERED IN MR LANGER'S PLUSH OFFICE TO DISCUSS THE AGENCY'S PHILOSOPHY IT WAS A SHORT AND NOT VERY ENLIGHTENING DISCOURSE THE EXECUTIVES ARE UNACCUSTOMED TO TALKING TO THE MEDIA THEY SAY WE TRY TO CREATE THE RIGHT WORK FOR EACH SPECIFIC CLIENT SAYS MR HAYES THIS ISN'T A ONESIZEFITSALL AGENCY THE ONE COMMON TRAIT EACH LOWE AD MUST POSSESS NO MATTER THE CLIENT IS IT MUST BE CLEVER AND SMART SAYS MR GARFINKEL A BRONX NYNATIVE WHO ASPIRED TO BE A STANDUP COMEDIAN AND ACTUALLY PERFORMED IN SOME COMEDY CLUBS BEFORE LAUNCHING A SUCCESSFUL CAREER IN ADVERTISING BEFORE JOINING LOWE ALMOST EXACTLY ONE YEAR AGO MR GARFINKEL WAS RESPONSIBLE FOR SOME OF THE BRIGHTEST ADVERTISING FOR PEPSICO'S PEPSICOLA WHEN HE WORKED WITH OMNICOM GROUP'S BBDO NOW HE AND HIS CREATIVE TEAM HAVE A NEW CHALLENGE WITH FORMER RIVAL DIET COKE A PACKAGE REDESIGN IS VIRTUALLY CERTAIN ALTHOUGH LOWE EXECUTIVES ARE DECIDEDLY CLOSEMOUTHED ABOUT ANY SPECULATION CONCERNING DIET COKE ADVERTISING THE DIET COKE CREATIVE CAMPAIGN CREATED BY LOWE FOR THE PITCH TO COCACOLA EXECUTIVES WILL BE THE SAME CREATIVE WORK USED IN THE ADVERTISING THAT IS SET TO PREMIERE LATE THIS YEAR SOMETIMES THE CREATIVE WORK USED IN THE PITCH ISN'T SEEN BY THE GENERAL PUBLIC MY JOB SAYS MR GARFINKEL IS TO MAKE A VERY GOOD CLIENT GREAT COCACOLA CO WHICH LAST WEEK MOVED ITS 60 MILLION DIET COKE ACCOUNT FROM INTERPUBLIC GROUP'S LINTAS TO ITS SISTER AGENCY LOWE & PARTNERS CONFIRMED THAT TWO MORE SHOPS HAVE THEIR TOES IN THE DOOR WPP GROUP'S FALLONMCELLIGOTT MINNEAPOLIS AND WIEDEN & KENNEDY PORTLAND ORE WILL PERFORM UNSPECIFIED SPECIAL PROJECTS ON COCACOLA BRANDS THE COMPANY SAID FALLON'S ASSIGNMENT IS BELIEVED TO INCLUDE A PACKAGE REDESIGN FOR DIET COKE FOR DECADES INTERPUBLIC GROUP AGENCIES INCLUDING MCCANNERICKSON LINTAS AND LOWE HAVE PRODUCED THE VAST MAJORITY OF COKE'S ADS TWO YEARS AGO COKE JOLTED THE INDUSTRY BY TURNING TO THE HOLLYWOOD TALENT AGENCY CREATIVE ARTISTS AGENCY FOR CREATIVE WORK ON THE CURRENT COCACOLA CLASSIC CAMPAIGN THE LATEST MOVE UNDERSCORES COKE'S WILLINGNESS TO OBTAIN CREATIVE SERVICES FROM MANY SOURCES COKE SAID IT WILL CONTINUE TO AWARD AGENCY ASSIGNMENTS ON THE BASIS OF THE QUALITY OF WORK PRODUCED RAISING QUESTIONS ABOUT WHETHER IT WILL STAGE A CREATIVE SHOOTOUT EACH TIME IT PLANS A NEW CAMPAIGN COKE SPENDS 392 MILLION A YEAR ADVERTISING ITS SOFT DRINKS ACCORDING TO ADVERTISING AGE HARVEY HOFFENBERG 43 VICE CHAIRMAN AND CHIEF CREATIVE OFFICER AT THE NEW YORK OFFICE OF SAATCHI & SAATCHI CO'S SAATCHI & SAATCHI ADVERTISING WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OF OPERATIONS SUCCEEDING JOSEPH MACK 60 WHO IS RETIRING MICHAEL KEESHAN 41 REMAINS PRESIDENT AND CHIEF OPERATING OFFICER THE AGENCY SAID RICHARD A POUNDER 46 AN EXECUTIVE VICE PRESIDENT AND EXECUTIVE MANAGEMENT DIRECTOR WAS NAMED VICE CHAIRMAN FINALISTS HJ HEINZ'S OREIDA FROZENFOOD UNIT NARROWED ITS SEARCH FOR AN AGENCY TO HANDLE A LINE OF FROZEN APPETIZERS THEY ARE RINEY ANGOTTI HEDGE NEW YORK CHIAT/DAY VENICE CALIF LORD DENTSU & PARTNERS LOS ANGELES AND THREE SAN FRANCISCO SHOPS GOODBY BERLIN & SILVERSTEIN KETCHUM ADVERTISING AND FOOTE CONE & BELDING ACCORDING TO ADVICE & ADVISORS NEW YORK EXECUTIVES ESTIMATE BILLINGS AT ABOUT 7 MILLION A DECISION IS DUE NEXT MONTH WHO'S NEWS WPP GROUP'S SCALI MCCABE SLOVES NAMED STEPHANIE L BECKER 46 YEARS OLD AN EXECUTIVE VICE PRESIDENT AND GROUP ACCOUNT DIRECTOR ON THE CASTROL ACCOUNT MS BECKER WAS PREVIOUSLY SENIOR VICE PRESIDENT AND MANAGEMENT SUPERVISOR AT INTERPUBLIC GROUP'S LINTAS WORKING ON SUCH UNILEVER BRANDS AS MENTADENT TOOTHPASTE 9310110062 931011 WORLD MARKETS JAPAN'S NEW WEIGHTED NIKKEI INDEX MAY BOOST INVESTOR CONFIDENCE AND PRICES ON TOKYO MARKET BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN IS GETTING A NEW STOCK INDEX WHICH THE GOVERNMENT HOPES WILL EVENTUALLY ECLIPSE THE WELLKNOWN NIKKEI STOCK AVERAGE IN THE NEARTERM HOWEVER THE MAJOR IMPACT OF THE NEW INDEX MAY BE TO BOOST INVESTOR CONFIDENCE IN THE TOKYO STOCK MARKET AND INCREASE THE VALUE OF SOME WELLKNOWN JAPANESE COMPANIES THE NEW INDEX CALLED THE NIKKEI STOCK INDEX 300 INCLUDES 75 MORE COMPANIES THAN THE NIKKEI STOCK AVERAGE OF 225 COMPANIES THERE ARE 155 COMPANIES THAT APPEAR ON BOTH INDEXES MORE IMPORTANT HOWEVER IS THE TYPE OF COMPANIES IN THE NEW AVERAGE AND THE WAY THE NIKKEI 300 IS CALCULATED SOME OF THE NEW COMPANIES ON THE INDEX SUCH AS SEED VENDOR SAKATA SEED WON'T RING A BELL WITH THE TYPICAL US INVESTOR BUT CONSIDER A FEW OF THE MAJOR JAPANESE COMPANIES ON THE 300 INDEX THAT AREN'T ON THE NIKKEI 225 DAIWA SECURITIES INDUSTRIAL BANK OF JAPAN MITSUBISHI MOTORS KYOCERA AND SEGA ENTERPRISES THE NEW 300 INDEX INCLUDES MANY JAPANESE SERVICE AND FINANCIAL COMPANIES THAT AREN'T LISTED BY THE NIKKEI 225 AVERAGE WHICH WAS DEVELOPED IN 1949 BOTH INDEXES ARE PUBLISHED BY THE JAPANESE NEWSPAPER COMPANY NIHON KEIZAI SHIMBUN IT'S EXPECTED THAT THE NEW AVERAGE LIKE THE CURRENT NIKKEI AVERAGE WILL BE TRADED ON THE OSAKA STOCK FUTURES AND OPTIONS MARKET THAT MEANS ARBITRAGE TRADERS WILL BUY THE COMPANIES ON THE NEW LIST IN ORDER TO OWN ALL OF THE SHARES THAT MAKE UP THE VALUE OF THE INDEX FUTURE THAT WAY THEY CAN TRADE EITHER THE FUTURES OR THE UNDERLYING STOCKS DEPENDING ON WHICH IS MORE VALUABLE AT THE TIME MANY LARGE FINANCIAL INSTITUTIONS ARE ALSO LIKELY TO KEEP A PORTFOLIO WITH ALL THE NIKKEI 300 STOCKS SO THAT THEIR INVESTMENT MIMICS THE NIKKEI'S PERFORMANCE THE NEW AVERAGE IS A BETTER REPRESENTATION OF WHAT JAPAN IS ALL ABOUT SAID MARK ARIMURA DIRECTOR OF EQUITY DERIVATIVES AT SALOMON BROTHERS ASIA LTD IT HAS GOT INTERESTING STOCKS THAT PEOPLE CAN'T FIND IN THE 225 THERE ARE OTHER GOOD REASONS FOR JAPAN TO GET A NEW STOCK INDEX PARTICULARLY ONE TRADED ON THE FUTURES MARKET SIMPLY PUT THE 300 INDEX SHOULD BE TOUGHER TO MANIPULATE THAN THE NIKKEI 225 THE 225 IS AN UNWEIGHTED AVERAGE WITH EQUAL VALUE GIVEN TO SMALL THINLY TRADED COMPANIES AND HUGE CORPORATIONS IT IS THUS RELATIVELY CHEAP FOR ARBITRAGE TRADERS TO DISTORT THE VALUE OF THE 225COMPANY AVERAGE BY BUYING OR SELLING LOTS OF SHARES IN ONE OF THE SMALL COMPANIES THIS ANOMALY MADE A FORTUNE FOR THE SECURITIES TRADERS MOSTLY US COMPANIES WHICH USED IT TO EXPLOIT PRICE DISCREPANCIES BETWEEN THE FUTURES AND STOCK MARKETS SINCE THEY STARTED TRADING NEAR THE TIME THAT JAPANESE STOCKS PEAKED MANY JAPANESE HAVE CONNECTED THEIR STOCK LOSSES WITH THE ARBITRAGER'S PROFITS TRADERS SAY JAPAN'S POWERFUL FINANCE MINISTRY HAS BEEN PRESSING FOR AN EXPANDED NIKKEI INDEX FOR YEARS THE 300 INDEX IS WEIGHTED BY CAPITALIZATION OF THE LISTED COMPANIES WHEN A FUTURES CONTRACT BASED ON THE INDEX BEGINS TRADING A NEARCERTAINTY TRADERS SAY THOUGH OSAKA EXCHANGE OFFICIALS HAVE REACHED NO FORMAL DECISION IT WON'T BE POSSIBLE TO DISTORT ITS PRICE IN THE SAME WAY AS THE 225 AVERAGE IT REMAINS TO BE SEEN IF THE 300 INDEX WILL BE AS POPULAR AMONG TRADERS AS THE 225 AVERAGE AFTER ALL THE FUTURES CONTRACT FOR THE 1227COMPANY TOKYO STOCK PRICE INDEX AN INDEX OF ALL THE COMPANIES ON THE FIRST SECTION OF THE EXCHANGE GETS ONLY A FRACTION OF THE TRADING ACTION THE 225 AVERAGE SEES INITIALLY HOWEVER TRADERS WERE POSITIVE ABOUT A 300 INDEX FUTURES CONTRACT AT FIRST LOOK IT SEEMS ALL RIGHT SAID RICHARD LEMMERMAN SENIOR VICE PRESIDENT OF EQUITY DERIVATIVE PRODUCTS AT LEHMAN BROTHERS JAPAN INC YOU CAN EXPECT GOOD PERFORMANCE FROM THE NAMES THAT ARE GOING ON THE 300 INDEX IT'S ANOTHER VEHICLE YOU CAN TRADE MR ARIMURA SAID NOTING THAT THERE MIGHT ALSO BE TRADING POSSIBILITIES AMONG THE THREE DIFFERENT FUTURES CONTRACTS SHARE PRICES IN LONDON GOT A BOOST FROM THE STRONG OPENING ON WALL STREET TO FINISH AT A RECORD HIGH THE FRANKFURT MARKET MEANWHILE ACHIEVED ITS FOURTH STRAIGHT RECORD CLOSE CONTINUING A WEEKLONG RALLY IN TOKYO STOCKS CLOSED HIGHER FRIDAY IN MUTED TRADING AHEAD OF A LONG HOLIDAY WEEKEND IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX GAINED 162 POINTS TO 31086 THE FT 30 INDEX ROSE 87 TO 23591 VOLUME TOTALED 4774 MILLION SHARES DOWN FROM 5721 MILLION THE PREVIOUS DAY TRADING WAS MOSTLY LACKLUSTER THE FTSE 100 NEEDED WALL STREET'S STRONG OPENING TO MOVE IT DECISIVELY INTO POSITIVE TERRITORY THE NEXT SEVEN WEEKS POSE RISKS FOR CERTAIN INDIVIDUAL SECTORS AS THE CHANCELLOR OF THE EXCHEQUER'S NOV 30 BUDGET APPROACHES THE TOUGH SPENDING PLANS COULD AFFECT THE AEROSPACE AND DEFENSE INDUSTRIES FOR EXAMPLE IN FRANKFURT THE DAX 30STOCK INDEX OF BLUECHIPS WHICH ADDED 99 POINTS THURSDAY ADVANCED 797 POINTS TO 200501 SOME TRADERS WERE NERVOUS ABOUT THE HIGH LEVELS EARLY IN THE MORNING THAT LED TO PROFITTAKING AND SOME TRADERS' TAKING SHORT POSITIONS BUT AS BUY ORDERS FLOWED INTO THE MARKET CAUSING PRICES TO RISE TRADERS WITH SHORT POSITIONS WERE FORCED TO BUY THE UNDERLYING SHARES TO COVER THEIR POSITIONS DRIVING PRICES EVEN HIGHER MOST OTHER EUROPEAN MARKETS FINISHED WITH GAINS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH TUMBLED 23462 POINTS ON THURSDAY CLIMBED 11301 TO 2037864 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 320 MILLION SHARES UP FROM 29879 MILLION SHARES THURSDAY GAINING ISSUES OUTNUMBERED LOSING ISSUES 532438 THE TOKYO STOCK PRICE INDEX OR TOPIX OF FIRSTSECTION ISSUES WHICH SLIPPED 699 TO 164679 ON THURSDAY ROSE 961 TO 165640 THE NIKKEI MANAGED A HIGHER FINISH DESPITE EARLY SELLING RELATED TO THE SETTLEMENT OF OCTOBER INDEX OPTIONS THE TOPIX WAS LIFTED BY RUMORS ABOUT THE NEW NIKKEI INDEX AS INVESTORS MOVED INTO SHARES THAT ARE OUTSIDE THE NIKKEI BUT ARE EXPECTED TO BE IN THE NEW WEIGHTED NIKKEI 300 THE RUMORS WERE CONFIRMED AFTER THE CLOSE OF TRADING FRIDAY OTHER ASIAN AND PACIFIC MARKETS WERE MIXED 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 9310110061 931011 KHAN PURSUES EFFORT FOR ICN PHARMACEUTICALS STOCKBROKER REVISES FILING SEEKING SEC APPROVAL IN OUSTER OF DIRECTORS BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL CALIFORNIA STOCKBROKER RAFI M KHAN FACING PRESSURE ON SEVERAL FRONTS IS MOVING AHEAD WITH HIS CAMPAIGN TO WREST CONTROL OF ICN PHARMACEUTICALS INC FROM ITS LONGTIME CHAIRMAN MILAN PANIC MR KHAN LAST WEEK FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A REVISED STATEMENT SEEKING THE AGENCY'S APPROVAL TO PROCEED IN THE NEW CONSENT STATEMENT MR KHAN MADE COURTORDERED DISCLOSURES THAT WEREN'T IN HIS ORIGINAL APRIL FILING SEPARATELY MR KHAN QUIT HIS JOB AT REYNOLDS KENDRICK STRATTON INC A BEVERLY HILLS CALIF BROKERAGE CONCERN LAST WEDNESDAY ICN PHARMACEUTICALS A COSTA MESA CALIF DRUG MAKER CALLED THE SEC FILING WHOLLY INADEQUATE IT DOESN'T PROVIDE A BASIS FOR MR KHAN TO GO FORWARD AND WE ARE FAIRLY CONFIDENT THE COURT WILL SO FIND SAID ICN'S ATTORNEY ARNOLD I BURNS MR KHAN NEEDS APPROVAL FROM BOTH THE SEC AND A NEW YORK FEDERAL JUDGE TO ACT ON HIS FILING MR BURNS SAID IT WAS THE LATEST VOLLEY IN A LONG BATTLE AFTER THE FEDERAL COURT IN NEW YORK BLOCKED MR KHAN'S INITIAL EFFORTS TO REMOVE MR PANIC AND OTHER INCUMBENT DIRECTORS AN APPEALS COURT IN NEW YORK LIFTED THE INJUNCTION AND SENT THE CASE BACK TO THE LOWER COURT FOR FURTHER PROCEEDINGS MR KHAN PERSONALLY OWNS 120000 ICN SHARES OTHER FAMILY MEMBERS OWN AN ADDITIONAL 136400 SHARES ICN LAST MONTH AMENDED ITS LAWSUIT AGAINST MR KHAN CHARGING HIM WITH VIOLATION OF THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATION ACT AND SEEKING 75 MILLION IN DAMAGES FROM HIM MR KHAN HAS DENIED ANY WRONGDOING NO COURT DATE HAS BEEN SET IT WASN'T CLEAR WHY MR KHAN RESIGNED HIS STOCK BROKERAGE JOB AND HIS SEAT ON THE BOARD OF THE FIRM'S PARENT COMPANY RKS FINANCIAL GROUP INC ALSO IN BEVERLY HILLS AN ATTORNEY FOR THE PARENT SCOTT MONSON CONFIRMED THE RESIGNATION BUT DECLINED TO FURTHER COMMENT MR KHAN WHO JOINED THE FIRM IN MARCH SAID I HAVE A WONDERFUL RELATIONSHIP WITH THE SENIOR OFFICERS OF THE COMPANY MR KHAN WHO STILL OWNS A 14 STAKE IN RKS FINANCIAL SAID HE WAS CONSIDERING A DOZEN JOB OFFERS SEPARATELY MR KHAN IS CAUGHT UP IN THE CONTROVERSY INVOLVING FUTURE COMMUNICATIONS INC A DALLAS CABLETELEVISION PROGRAMMING CONCERN TRADING IN ITS STOCK WAS HALTED BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AND LATER SUSPENDED BY THE SEC THE SEC ALSO SUED FUTURE COMMUNICATIONS AND ITS TOP OFFICER IN FEDERAL COURT IN DALLAS ACCUSING THEM OF FRAUDULENTLY INFLATING THE VALUE OF THE COMPANY'S STOCK SEVERAL SECURITIES FIRMS HAVE SUED RKS FINANCIAL AND MR KHAN IN CONNECTION WITH THEIR BUY RECOMMENDATIONS AND PURCHASE OF FUTURE COMMUNICATIONS SHARES MR KHAN SAYS THE SEC HASN'T TAKEN ANY ACTION AGAINST HIM ADDING I'VE DONE NOTHING WRONG THE ICN FIGHT IS HEATING UP AMID INVESTORS' HOPES THAT THE COMPANY'S RIBAVIRIN DRUG WILL TURN OUT TO BE AN EFFECTIVE TREATMENT AGAINST HEPATITIS C PRELIMINARY TEST RESULTS INCLUDING THOSE FROM A WIDELY WATCHED TRIAL AT THE NATIONAL INSTITUTES OF HEALTH WILL BE PRESENTED NEXT MONTH AT THE ANNUAL MEETING OF THE AMERICAN ASSOCIATION FOR THE STUDY OF LIVER DISEASE ABSTRACTS OF THE PRESENTATIONS APPEAR IN THIS MONTH'S ISSUE OF THE JOURNAL HEPATOLOGY SHARES OF ICN CLOSED FRIDAY AT 1075 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9310110060 931011 MARKETING & MEDIA DISAPPOINTING THIRDQUARTER RESULTS LEAVE MAGAZINE PUBLISHERS JITTERY BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL ORLANDO FLA THE MOOD OF MAGAZINE PUBLISHERS WHO ARE ASSEMBLING HERE FOR THEIR ANNUAL CONVENTION CAN BEST BE DESCRIBED AS GRIM OPTIMISM SAYS MAGAZINE CONSULTANT ROBERT NYLEN JITTERY AFTER TWO CONSECUTIVE QUARTERLY DROPS IN ADVERTISING PAGES AND UPHEAVAL IN TOP EDITORIAL RANKS THE PUBLISHERS ARE MORE AWARE THAN EVER THAT AN ECONOMIC RECOVERY WON'T SOON RESCUE THEM INDUSTRY FIGURES RELEASED LATE LAST WEEK SHOWED THAT AD PAGES IN CONSUMER MAGAZINES FELL 15 IN SEPTEMBER WITH A 26 DECLINE FOR THE THIRD QUARTER WHEN THE TRADE GROUP MET LAST YEAR IT APPEARED THAT A THREEYEAR AD SLUMP WAS REVERSING AND MOST PUBLISHERS EXPECTED AN ERA OF GROWTH PEOPLE ARE SAYING IS THIS THE WAY IT'LL BE FOR THE REST OF THE DECADE AND IF SO WHERE WILL WE GET THE GROWTH WE NEED TO COVER EXPENSES' SAYS DONALD KUMMERFELD PRESIDENT OF THE MAGAZINE PUBLISHERS OF AMERICA WE'RE IN WHAT I CALL A FLATNESS AND THE DEPRESSING THING IS WE DON'T KNOW WHEN IT WILL END FRANCIS PANDOLFI PRESIDENT OF TIMES MIRROR MAGAZINES SAYS IT REQUIRED A KICK IN THE BUTT TO GET SOME PEOPLE STARTED BUT MORE MAGAZINES ARE LOOKING INTO NEW AREAS OF PROFIT PUBLISHERS HAVE ADOPTED STRATEGIES IN RECENT YEARS THAT ARE LESS EXPENSIVE AND LESS RISKY THAN STARTING NEW MAGAZINES SUCH AS SPECIAL ISSUES LADIES HOME JOURNAL PUBLISHED ITS FIRST CELEBRITY SPINOFF EDITION THIS YEAR ON KATHARINE HEPBURN IN TWO WEEKS SKIING MAGAZINE WILL DELIVER ITS FIRST SKIING FOR WOMEN ANOTHER EMERGING TREND INVOLVES PACKAGING AN ESTABLISHED MAGAZINE WITH SERVICES AND PRODUCTS CREATING A SORT OF MEMBERSHIP SALT WATER SPORTSMAN MAGAZINE PUBLISHED BY TIMES MIRROR TESTED A MEMBERSHIP PROGRAM WITH SUBSCRIBERS THAT OFFERED SERVICES AND ITEMS INCLUDING BOATTOWING INSURANCE FOR 35 THE COMPANY WON'T DIVULGE THE RESULTS BUT SAYS A SUBSTANTIAL NUMBER OF THE MAGAZINE'S 140000 SUBSCRIBERS SIGNED UP UNTIL NOW ALL WE SOLD OUR SUBSCRIBERS IS A MAGAZINE SAYS PATRICIA CAMPBELL EXECUTIVE VICE PRESIDENT BRAND DEVELOPMENT FOR TIMES MIRROR MAGAZINES THE TIMES MIRROR CO UNIT WHOSE PUBLICATIONS INCLUDE FIELD & STREAM AND OUTDOOR LIFE BUT WE KNOW OUR READERS ARE VERY PASSIONATE ABOUT THE ACTIVITIES THEY PURSUE OUR FEELING WAS THAT GIVEN WHAT WE KNOW ABOUT THESE CONSUMERS AND THE EQUITY WE'VE BUILT UP AS AN AUTHORITY ON THE OUTDOORS WE SHOULD MARKET MORE THAN A MAGAZINE TO THEM THE TEST WITH SALT WATER SPORTSMAN WAS SO SUCCESSFUL SAYS MS CAMPBELL THAT TIMES MIRROR PLANS TO TRY MEMBERSHIP PROGRAMS AT LARGER MAGAZINES SAM SCHULMAN FOUNDING PUBLISHER OF THE NOWDEFUNCT WIGWAG MAGAZINE IS SO CONVINCED THAT SUCH PROGRAMS ARE THE FUTURE OF THIS BUSINESS THAT HE RECENTLY STARTED MARS A COMPANY THAT CREATES AND RUNS THEM MARS FOR MAGAZINE AFFINITY AND RENEWAL SERVICES RECENTLY PUT TOGETHER A MEMBERSHIP PROGRAM FOR CONDE NAST TRAVELER A MAILING TO POTENTIAL SUBSCRIBERS OFFERED A FREE PREFERRED SUBSCRIBER CARD THAT GUARANTEES HOTEL DISCOUNTS AND OTHER TRAVEL BARGAINS THE MAGAZINE'S PUBLISHER TOM FLORIO SAYS A TEST MAILING TO 50000 HOMES GARNERED A MUCH HIGHER PERCENTAGE OF SUBSCRIPTIONS THAN STANDARD OFFERS FOR THE MAGAZINE ALONE SO THE PROGRAM WILL BE EXPANDED AND ALSO OFFERED TO EXISTING SUBSCRIBERS I THINK YOU'LL SEE MORE OF THIS KIND OF THING WITH MAGAZINES THAT HAVE A STRONG FRANCHISE WITH READERS SAYS MR FLORIO IT'S IMPORTANT THOUGH THAT THE PROGRAM COME DIRECTLY OUT OF EDITORIAL CONTENT 9310110059 931011 SEOUL CENTRAL BANK REDUCES ITS FORECAST OF ECONOMIC GROWTH SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA'S CENTRAL BANK REVISED DOWNWARD ITS FORECAST FOR THE YEAR'S ECONOMIC GROWTH TO AN ANNUALIZED RATE OF 4 TO 43 SUCH PERFORMANCE WOULD BE THE POOREST SINCE 1980 WHEN THE NATION'S ECONOMY AFFECTED BY A GLOBAL OIL CRISIS CONTRACTED BY 37 THE REVISED FORECAST IS DOWN FROM A PREVIOUS PROJECTION OF 6 BANK OF KOREA'S NUMBER IS BELOW THE RECENTLY REVISED FORECAST BY STATERUN KOREA DEVELOPMENT INSTITUTE WHICH PROJECTS 45 GROWTH OBSERVERS HAVE CONTENDED THAT SUCH REVISIONS WERE INEVITABLE AFTER THE AUG 12 SURPRISE IMPLEMENTATION OF A NEW FINANCIAL SYSTEM THAT OUTLAWS THE TRADITIONAL USE OF PSEUDONYMS IN FINANCIAL TRANSACTIONS INDEED THE CENTRAL BANK SAID THAT RETRENCHMENT IN CAPITAL INVESTMENT FOLLOWING THE NEW SYSTEM WAS MOST TO BLAME FOR SLOWED ECONOMIC GROWTH THE SOCALLED REALNAME TRANSACTION SYSTEM CONSIDERED THE BACKBONE OF A REFORM DRIVE BY PRESIDENT KIM YOUNG SAM REPORTEDLY HAS LED TO PARALYSIS IN UNDERGROUND MONEY MARKETS IN ITS REVISED ECONOMIC FORECAST THE CENTRAL BANK PREDICTED CAPITAL INVESTMENT BY CORPORATIONS FOR THE YEAR WILL DROP 36 FROM YEAREARLIER FIGURES IT EARLIER PROJECTED A 03 RISE IN 1992 CORPORATIONS' CAPITAL INVESTMENT DECLINED 08 THE ECONOMY IS ALSO SEEN AS BEING AFFECTED BY A DECLINE IN AGRICULTURAL PRODUCTION BLAMED ON LOW SUMMER TEMPERATURES AND FREQUENT RAINS SLUGGISH CONSUMER SPENDING WILL ALSO NEGATIVELY AFFECT THE ECONOMY THE BANK PREDICTED THE SOUTH KOREAN ECONOMY WHICH SAW HANDSOME GROWTH OF 84 IN 1991 SLOWED DOWN IN 1992 HITTING A 12YEAR LOW FOR GROWTH OF 47 9310110058 931011 LAW LEGAL BEAT WEINGARTEN'S JUSTICE BACKGROUND IS ASSET IN DEFENDING RON BROWN BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL AS A JUSTICE DEPARTMENT TRIAL LAWYER REID WEINGARTEN PROSECUTED SOME OF THE BIGGEST PUBLIC CORRUPTION CASES OF THE 1980S NOW HE HOPES TO HEAD OFF ONE OF THE BIGGEST OF THE 1990S MR WEINGARTEN REPRESENTS COMMERCE SECRETARY RON BROWN WHO HAS BEEN BATTLING ACCUSATIONS THAT HE MAY HAVE SOUGHT 700000 TO HELP LIFT THE US TRADE EMBARGO AGAINST VIETNAM MR WEINGARTEN IS UNIQUELY SUITED TO FIGHT THOSE ALLEGATIONS WHILE A MEMBER OF THE JUSTICE DEPARTMENT'S PUBLIC INTEGRITY SECTION HE SPENT MOST OF THE 1980S TRYING TO SEND JUDGES CONGRESSMEN AND A HOST OF OTHER PUBLIC OFFICIALS TO JAIL WITH A HIGH DEGREE OF SUCCESS NOW HE IS HOPING HIS OLD COLLEAGUES WON'T TRY TO DO THE SAME TO MR BROWN MR WEINGARTEN 43 YEARS OLD ISN'T THE BESTKNOWN MEMBER OF THE FRATERNITY OF WASHINGTON LAWYERS WHO SPECIALIZE IN DEFENDING WHITECOLLAR CRIMINAL CASES THAT DISTINCTION PROBABLY BELONGS TO SKADDEN ARPS SLATE MEAGHER & FLOM PARTNER ROBERT BENNETT WHO LATELY HAS BEEN TRYING TO EXTRICATE ILL REP DAN ROSTENKOWSKI FROM ALLEGATIONS INVOLVING MISUSE OF THE HOUSE POST OFFICE BUT MR WEINGARTEN'S STAR IS RISING HE HAS BEEN INVOLVED IN A GROWING NUMBER OF MAJOR CASES AND FRIENDS CONSIDER THE TASK OF DEFENDING MR BROWN TO BE A PROFESSIONAL MILESTONE IT REPRESENTS A SORT OF PUBLIC RECOGNITION THAT HE IS ON THE TOP SHELF SAID JOHN K CARROLL A NEW YORK LAWYER AND FORMER MANHATTAN FEDERAL PROSECUTOR WHO GOT TO KNOW MR WEINGARTEN WHEN THE TWO WERE ON OPPOSITE SIDES OF THE DREXEL BURNHAM LAMBERT INC TRADING SCANDAL MR WEINGARTEN'S OLD STOMPING GROUND THE PUBLIC INTEGRITY SECTION IS BELIEVED TO BE THE UNIT OVERSEEING THE PROBE OF MR BROWN WHO HAS ACKNOWLEDGED MEETING WITH A VIETNAMESE BUSINESSMAN BUT HAS DENIED ANY WRONGDOING AT THE JUSTICE DEPARTMENT MR WEINGARTEN WAS WELLLIKED AND HAD A REPUTATION FOR EVENHANDEDNESS HE HAS GREAT CREDIBILITY SAYS WILLIAM G HUNDLEY A PARTNER AT AKIN GUMP STRAUSS HAUER & FELD ADDING THAT HAVING WORKED UP THERE YOU KNOW HOW THEY PROCEED AND THAT IS A PRETTY BIG LEG UP DURING HIS 10 YEARS AT THE JUSTICE DEPARTMENT MR WEINGARTEN SUCCESSFULLY PROSECUTED SUCH FIGURES AS MISSISSIPPI FEDERAL JUDGE WALTER NIXON AND FORMER CONGRESSMEN GEORGE HANSEN AND JOHN JENRETTE HE ALSO OBTAINED A CONVICTION AGAINST A HOUSTON FEDERAL PROSECUTOR WHO HAD OFFERED TO SWAP THE NAME OF A GOVERNMENT INFORMANT TO SOME DRUG DEALERS FOR 250000 A CONVICTION HE CONSIDERS ONE OF HIS MORE SATISFYING RESULTS I WAS PERSONALLY SORRY TO SEE HIM LEAVE SAYS GERALD MCDOWELL A JUSTICE DEPARTMENT OFFICIAL WHO USED TO OVERSEE MR WEINGARTEN AS CHIEF OF THE PUBLIC INTEGRITY SECTION HE WAS THE SENIOR GUY AND I THINK THE CASES HE HANDLED WOULD INDICATE THAT IN 1987 MR WEINGARTEN JOINED THE FIRM OF STEPTOE & JOHNSON AS A PARTNER SPECIALIZING IN WHITECOLLAR CRIME HE HAS BEEN ABLE TO ACCEPT SEVERAL PUBLIC ASSIGNMENTS WHILE WORKING AT THE FIRM INCLUDING A STINT AS AN ASSOCIATE INDEPENDENT COUNSEL IN THE IRANCONTRA AFFAIR LAST YEAR HE ALSO SERVED AS SPECIAL COUNSEL TO A SENATE PANEL INVESTIGATING THE OCTOBER SURPRISE ALLEGATIONS THAT THE REAGAN CAMPAIGN CONSPIRED WITH IRANIAN OFFICIALS IN 1980 TO DELAY RELEASE OF 52 US HOSTAGES UNTIL AFTER THE NOVEMBER PRESIDENTIAL ELECTION AT STEPTOE HIS CASELOAD HAS INCLUDED HELPING A FORMER DREXEL TRADER AVOID INDICTMENT AND AN ACQUITTAL LAST YEAR IN A CASE BROUGHT BY HIS OLD COLLEAGUES AT PUBLIC INTEGRITY AGAINST A SAN ANTONIO BUSINESSMAN ACCUSED OF VIOLATING FEDERAL CAMPAIGN CONTRIBUTION LAWS HOWEVER SOME OF HIS BEST WORK HE SAYS HAS NEVER BECOME PUBLIC BECAUSE HE HELPED CLIENTS AVOID INDICTMENTS IT IS A SLIGHT ADVANTAGE TO KNOW WHO TO CALL AND WHAT DOOR TO OPEN AND THAT IS OFTEN WHY WASHINGTON LAWYERS ARE HIRED MR WEINGARTEN SAYS OTHER THAN THAT HE INSISTS A WASHINGTON LAWYER GETS NO SPECIAL FAVORS MR WEINGARTEN'S FIRST BRUSH WITH THE LAW CAME WHILE WORKING PART TIME AT THE HARRISBURG PENN DISTRICT ATTORNEY'S OFFICE WHILE ATTENDING DICKINSON LAW SCHOOL BORN IN NEWARK NJ HE ATTENDED CORNELL UNIVERSITY AS AN UNDERGRADUATE HIS FATHER WAS A GROCER MR WEINGARTEN HIMSELF IS THE FATHER OF AN EIGHTYEAROLD SON WHO OFTEN TRAVELS ON CASES WITH HIM OF MR BROWN'S PROBLEMS MR WEINGARTEN SAYS I THINK THIS IS AN UNFORTUNATE ALLEGATION MADE AGAINST A FINE PUBLIC SERVANT AND THAT IT WILL BE CLEARED UP IN SHORT ORDER THE JUSTICE DEPARTMENT HASN'T DECIDED WHETHER TO PURSUE THE CASE AND THE MATTER IS STILL BELIEVED PENDING BEFORE A MIAMI FEDERAL GRAND JURY NO MATTER WHAT HAPPENS BROWN IS IN VERY GOOD HANDS SAYS MR BENNETT OF SKADDEN ARPS THE GOVERNMENT BETTER HAVE A POWERFUL CASE OTHERWISE REID WILL BEAT THE DEVIL OUT OF THEM THE TRIAL OF DAVID L PAUL ONE OF THE MOST PROMINENT NAMES IN THE SAVINGS AND LOAN DEBACLE IS SET TO BEGIN TOMORROW WITH OPENING ARGUMENTS IN US DISTRICT COURT IN MIAMI MR PAUL THE FORMER CHIEF EXECUTIVE OF CENTRUST SAVINGS BANK FACES 71 FELONY COUNTS MOST INVOLVE ALLEGATIONS THAT HE SIPHONED 32 MILLION FROM CENTRUST AND SPENT IT ON HIS 95FOOT YACHT AND HIS HOMES IN MIAMI AND ELSEWHERE DURING THE 1980S GOVERNMENT PROSECUTORS ALSO CHARGE THAT MR PAUL FILED FALSE TAX RETURNS AND OBSTRUCTED AN ADMINISTRATIVE PROCEEDING OF THE OFFICE OF THRIFT SUPERVISION MR PAUL HAS DENIED THE CHARGES AT ONE TIME CENTRUST RANKED AS ONE OF FLORIDA'S BIGGEST THRIFTS WITH 9 BILLION IN ASSETS IN 1989 MR PAUL DREW CRITICISM AND GAINED CELEBRITY STATUS FOR SPENDING SOME 28 MILLION OF CENTRUST FUNDS ON A COLLECTION OF PRE18TH CENTURY ART CENTRUST FAILED IN 1990 AND WAS PLACED IN FEDERAL RECEIVERSHIP THE TRIAL THAT BEGINS TOMORROW FOCUSING ON BANK FRAUD CHARGES REPRESENTS ONLY A PORTION OF THE GOVERNMENT'S CASE AGAINST MR PAUL A SECOND TRIAL IS EXPECTED TO BEGIN NEXT YEAR WHEN MR PAUL AND ANOTHER FORMER CENTRUST EXECUTIVE WILLIAM CHRISTOPHER BERRY FACE SECURITIES CHARGES STEMMING FROM CENTRUST'S DEALINGS WITH AMONG OTHERS THE ROGUE BANK OF CREDIT & COMMERCE INTERNATIONAL IN WHAT HAS TURNED OUT TO BE A BITTER DIVORCE A WELLKNOWN BANKRUPTCY SPECIALIST IS BATTLING WITH HIS FORMER LAW FIRM ABOUT HOW TO SPLIT UP PARTNERSHIP ASSETS THE FIRST BATTLE CRY WAS SOUNDED BY JOEL B ZWEIBEL WHO HAS REPRESENTED CREDITORS OF EASTERN AIRLINES AND TEXACO WHEN HE SUED THE NEW YORK LAW FIRM KRAMER LEVIN NAFTALIS NESSEN KAMIN & FRANKEL WHERE HE WAS A PARTNER FOR NINE YEARS MR ZWEIBEL LEFT THE FIRM IN JUNE 1990 FOR MORE LUCRATIVE PASTURES AT THE NEW YORK OFFICE OF O'MELVENY & MYERS HE CLAIMS HIS FORMER LAW FIRM OWES HIM 1 MILLION REPRESENTING HIS SHARE OF THE PARTNERSHIP PLUS INTEREST KRAMER LEVIN COUNTERS THAT BY FORSAKING THE FIRM MR ZWEIBEL BREACHED A TWOYEAR CONTRACT TO STAY UNTIL THE END OF 1990 THE PARTNERSHIP ALSO CONTENDS THAT HE FRAUDULENTLY MISLED IT INTO BELIEVING THAT HE INTENDED TO REMAIN FOR THE FULL PERIOD WHILE SECRETLY MEETING WITH OTHER LEGAL SUITORS THEY SAY HE FAILED TO GIVE THEM ADEQUATE WARNING THAT HIS AFFECTIONS MIGHT BE ALIENATED MR ZWEIBEL WHO WON'T REVEAL HIS ANNUAL COMPENSATION BUT SAYS HE WAS GUARANTEED A MINIMUM OF 600000 DISPUTES ALL THAT IN A RECENT PRELIMINARY RULING A NEW YORK STATE JUDGE SAID THAT SHE EXPECTS THE CASE TO GO TO TRIAL UNUSUAL IN SUCH DISPUTES WHICH ARE USUALLY SETTLED QUIETLY AT THE CORE OF THE CASE ARE THE PARTNERSHIP COMPENSATION PRACTICES AMONG THE MAJOR LAW FIRMS IN NEW YORK SAID JUDGE BEVERLY S COHEN KRAMER LEVIN MANAGING PARTNER ROBERT M HELLER PUT IT ANOTHER WAY THE WHOLE THING IS SILLY HE SAID LOS ANGELES ATTORNEY LYNN BOYD STITES THE CENTRAL FIGURE IN A MASSIVE INSURANCE FRAUD AND LEGAL CORRUPTION SCHEME DUBBED THE ALLIANCE WAS CONVICTED OF RACKETEERING AND 12 COUNTS OF MAIL FRAUD IN FEDERAL COURT IN SAN DIEGO MR STITES WAS THE ALLEGED MASTERMIND BEHIND A SECRET NETWORK OF NEARLY TWO DOZEN LAWYERS AND LAW FIRM EMPLOYEES IN CALIFORNIA WHO BILKED INSURERS OUT OF MILLIONS IN LEGAL FEES BY CHURNING COMPLEX LITIGATION BY RESISTING SETTLEMENTS PROLONGING LITIGATION INVENTING NEW LEGAL CONTROVERSIES AND EVEN REPRESENTING BOTH SIDES OF THE SAME LAWSUIT THE ALLIANCE WAS ALLEGED TO HAVE BLED 50 MILLION TO 200 MILLION FROM THEIR INSURANCE COMPANY CLIENTS INCLUDING FUND AMERICAN COS FIREMAN'S FUND INSURANCE CO AND SEARS ROEBUCK & CO'S ALLSTATE INSURANCE CO MR STITES 48 YEARS OLD FLED THE COUNTRY BEFORE HE WAS INDICTED IN APRIL 1990 HE WAS ARRESTED IN SOUTHERN ILLINOIS IN NOVEMBER AFTER A STATE TROOPER PULLED HIM OVER FOR SPEEDING A SEARCH OF MR STITES'S CAR REVEALED 30000 IN CASH AND IDENTITY PAPERS UNDER VARIOUS NAMES INCLUDING HIS OWN ACCORDING TO FEDERAL PROSECUTORS IN SAN DIEGO MR STITES WHO IS BEING HELD WITHOUT BAIL IS SCHEDULED TO BE SENTENCED JAN 13 EMORY THOMAS JR AND MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE 9310110057 931011 CUTS IN SPACE STATION TO MEAN REDUCTIONS AT MCDONNELL OTHERS LOS ANGELES AP NASA'S STREAMLINED SPACE STATION PROGRAM MEANS MORE THAN 4000 PEOPLE WILL LOSE THEIR JOBS WITH SOUTHERN CALIFORNIA FEELING MUCH OF THE PAIN AUTHORITIES SAID MCDONNELL DOUGLAS CORP'S AEROSPACE UNIT WILL LAY OFF ABOUT 1000 WORKERS IN HUNTINGTON BEACH CALIF HOUSTON AND ST LOUIS SPOKESMAN THOMAS E WILLIAMS SAID MCDONNELL EXPECTS SUBCONTRACTORS TO LAY OFF ANOTHER 1000 WORKERS WITH EVEN MORE CUTS EXPECTED AT GRUMMAN CORP BOEING CO AND OTHER AEROSPACE COMPANIES ABOUT 1300 GOVERNMENT ENGINEERS AND MANAGERS WILL BE RELEASED FROM THE PROJECT BY EARLY 1994 SAID GEOFFREY H VINCENT SPOKESMAN FOR THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION THE ULTIMATE DECISIONS FOR THE FINETUNING OF THE NUMBERS COMES FROM THE CONTRACTORS MR VINCENT SAID BUT IT IS CLEAR THAT WHEN WE DRIVE DOWN THE FUNDING LEVELS IT'S GOING TO DRIVE DOWN THE WORK FORCE THE CUTBACKS FOLLOW PRESIDENT CLINTON'S DECISION EARLIER THIS YEAR TO REDUCE THE SIZE AND COST OF THE SPACE STATION WHICH WILL SERVE AS A PLATFORM FOR INDUSTRIAL AND BIOLOGICAL RESEARCH NASA EXTENDED THE CONSTRUCTION SCHEDULE BY THREE YEARS TO 2003 WITH EACH ADDITIONAL YEAR COSTING 2 BILLION THE SPACE STATION WHICH WILL HOUSE FOUR CREW MEMBERS HAS COST 11 BILLION AND IS EXPECTED TO COST A FURTHER 19 BILLION BEFORE IT IS COMPLETED NASA TOLD MCDONNELL DOUGLAS THAT IT WILL RECEIVE 427 MILLION FOR SPACE STATION WORK IN THE FISCAL YEAR THAT BEGAN OCT 1 DOWN FROM MORE THAN 700 MILLION IN FISCAL 1993 A SPACE STATION REDESIGN TEAM ALSO REPLACED A MCDONNELL DOUGLASDESIGNED PROPULSION SYSTEM WITH A LOCKHEED SYSTEM BUILT FOR A MILITARY SATELLITE THAT SYSTEM IN TURN COULD BE REPLACED BY A RUSSIAN DESIGN IF THE ADMINISTRATION BRINGS IN RUSSIA AS A FULL PARTNER IN THE PROJECT 9310110056 931011 BEVERAGE FIRMS SEEN REPORTING HIGHER PROFITS BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA THE MAJOR BEVERAGE COMPANIES BENEFITING FROM A STRONG SUMMER SEASON ARE EXPECTED TO REPORT HIGHER THIRDQUARTER EARNINGS AND GAINS IN VOLUME ANALYSTS EXPECT COCACOLA CO TO POST A PERSHARE EARNINGS GAIN OF ABOUT 12 PEPSICO INC IS EXPECTED TO REPORT A 13 GAIN BOTH ESTIMATES EXCLUDE EXPECTED CHARGES FOR NEW FEDERAL INCOMETAX LAWS ANHEUSERBUSCH COS SHOULD REPORT A SLIGHT EARNINGS GAIN EXCLUDING A 565 MILLIT SAID IT WILL TAKE IN THE QUARTER COCACOLA ENTERPRISES INC THE BOTTLING COMPANY IS EXPECTED TO POST A SLIGHT LOSS OR BREAK EVEN EARNINGS FOR NEWCOMER DR PEPPER/SEVENUP COS ARE EXPECTED TO BE STRONG VOLUME IN THE DOMESTIC SOFTDRINK MARKET IS GROWING AT ABOUT 4 TO 5 FOR COKE AND PEPSI ANALYSTS SAID THE COMPANIES BENEFITED FROM STRONG FOUNTAIN SALES HOT SUMMER WEATHER THAT PROVIDED AN EASY COMPARISON WITH LAST YEAR'S SEASON AND THE ADDITION OF ALTERNATIVE DRINKS SUCH AS TEAS THE COMPANIES ARE ALSO DOING LESS PRICE DISCOUNTING ANALYSTS SAID PEPSI SAID ITS RESULTS WON'T BE HURT BY THE PRODUCTTAMPERING HOAX IN JUNE THAT FOR TWO WEEKS SCARED OFF BUSINESS INTERNATIONALLY THE PICTURE MAY BE MORE DISAPPOINTING FOR COCACOLA WHICH DERIVES ABOUT 80 OF ITS EARNINGS FROM ABROAD SOME ANALYSTS EXPECT VOLUME TO GROW 4 COMPARED WITH BETWEEN 5 AND 7 RECENTLY THE CHANGE ACCORDING TO ANALYSTS REFLECTS WEAK ECONOMIES IN SEVERAL KEY MARKETS INCLUDING GERMANY AND JAPAN PEPSI'S FOOD BUSINESS IS EXPECTED TO POST STRONG GAINS FRITOLAY IS EXPECTED TO BOOST VOLUME 6 TO 8 HELPED BY STRONG SALES OF ROLD GOLD PRETZELS AND SEVERAL LINES OF TORTILLA CHIPS THE COMPANY'S INTERNATIONAL SNACK BUSINESS IS ALSO EXPECTED TO BOAST STRONG VOLUME GAINS TACO BELL BENEFITING FROM VALUE PRICING AND PIZZA HUT HELPED BY LUNCH BUFFET SALES AND A NEW LARGE PIZZA CALLED BIG FOOT ARE EXPECTED TO POST SAMESTORE SALES GAINS AS HIGH AS 7 KFC IS EXPECTED TO REPORT A DROP IN DOMESTIC SAMESTORE SALES ALTHOUGH ITS INTRODUCTION OF ROTISSERIE CHICKEN IS HELPING THE CHAIN INTERNATIONALLY KFC SALES ARE HURT BY WEAK ECONOMIES IN JAPAN AND AUSTRALIA THE BEER MARKET SAW A 3 VOLUME GAIN IN THE QUARTER ANALYSTS SAID THE INCREASE HOWEVER APPEARS TO HAVE BEEN SPARKED BY STEEPER DISCOUNTING AND NOT BY INCREASED SALES OF MOREEXPENSIVE BRANDS AMERICAN CONSUMERS ARE TRADING DOWN SAID JOSEPH DOYLE AN ANALYST WITH SMITH BARNEY SHEARSON INC VOLUME IS COMING AT THE EXPENSE OF ADVANCED PRICING AND MIX ANHEUSER'S BUSCH AND NATURAL LIGHT BRANDS ARE SHOWING STRONG SALES GAINS ANALYSTS SAID BUT PREMIUMPRICED PRODUCTS SUCH AS MICHELOB ARE STILL SUFFERING 9310110055 931011 CORRECTIONS & AMPLIFICATIONS OREGON STATE DISTRICT JUDGE HENRY DICKERSON ATTENDED BUT DIDN'T PRESIDE AT A MOCK TRIAL HELD BY THE ATTORNEY OF THENFUGITIVE KATHERINE ANN POWER AS REPORTED IN WEDNESDAY'S PAGEONE ARTICLE BARRY REEVES AN EMERGENCYROOM PHYSICIAN WAS THE PRESIDING JUDGE AT THE MOCK TRIAL HYUNDAI ELECTRONICS INDUSTRIES CO IS STILL NEGOTIATING SOME DETAILS OF ITS NEW MEMORY CHIP AGREEMENT WITH FUJITSU LTD IN AN ARTICLE THURSDAY HYUNDAI'S US SEMICONDUCTOR DIVISION PREMATURELY SAID THAT HYUNDAI WOULD LICENSE ITS CHIP DESIGN AND PROCESS TECHNOLOGY TO FUJITSU AND THAT THE COMPANIES WOULD WORK TOGETHER ON 16MEGABIT DYNAMIC RANDOM ACCESS MEMORIES A HYUNDAI STATEMENT RELEASED FRIDAY IN SEOUL SOUTH KOREA SAID THE COMPANIES ARE REVIEWING SEVERAL AREAS OF COOPERATION IN MEMORIES INCLUDING JOINT MANUFACTURING AND DEVELOPMENT BUT A FINAL AGREEMENT WON'T BE REACHED UNTIL THE END OF THE YEAR 9310110054 931011 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN INDIAN OFFICIALS SET JAN 26 THE REPUBLIC DAY HOLIDAY AS THE TARGET FOR REBUILDING 30000 HOMES DESTROYED BY LAST MONTH'S POWERFUL EARTHQUAKE WHICH KILLED AS MANY AS 22000 PEOPLE IN WESTERN INDIA CONTRACTS WERE SETTLED FRIDAY FOR AN INITIAL 18500 HOMES TO BE BUILT BY PRIVATE CONSTRUCTION COMPANIES AND ORDERS FOR THE REMAINING 11500 WILL BE MADE SOON THE TOTAL COST IS EXPECTED TO BE 190 MILLION THOUGH ADDITIONAL MONEY WILL BE NEEDED TO REBUILD ROADS POWER LINES AND SCHOOLS THE VILLAGES ARE TO BE REBUILT ON MORE SOLID ROCKY SITES AWAY FROM THE SOFT RICH EARTH THAT FAILED TO PROVIDE STRONG FOUNDATIONS WHEN THE QUAKE STRUCK SEPT 30 WORST HIT WERE HOMES MADE OF HEAVY LOCAL STONE HELD TOGETHER BY SCANT MUDBASED MORTAR THE NEW HOUSES WOULD BE MADE OF PRECAST CONCRETE VILLAGES WOULD BE CONSTRUCTED WITH PUBLIC AMENITIES SUCH AS WATER TAPS ROADS SCHOOLS AND PLACES OF WORSHIP THE WORLD BANK AGREED TO LEND INDIA 300 MILLION FOR THE RECONSTRUCTION AND 15 MILLION FOR A STUDY TO DESIGN BETTER HOUSES IN 90 VILLAGES DEVASTATED BY THE QUAKE FINLAND'S GOVERNMENT PLANS TO INCLUDE IN ITS AUTUMN BUDGET A PROPOSAL ALLOWING IT TO REDUCE ITS STAKE IN SEVERAL FINNISH COMPANIES A FIRST STEP TOWARD PRIVATIZING SOME STATEOWNED ASSETS FIVE COMPANIES ARE TARGETED INCLUDING OIL AND CHEMICAL GROUP NESTE OY AND FORESTRY GROUP ENSOGUTZEIT OY THE PROPOSAL CALLS FOR REDUCING OR ABOLISHING MINIMUM STATE OWNERSHIP LEVELS STIPULATED IN FINNISH LAWS IN THE CASE OF NESTE THE GOVERNMENT'S SHARE BY LAW CAN BE NO LESS THAN 67 THAT WOULD BE CUT TO 50 IF THE PROPOSAL PASSES ABOUT 40 TAIWAN TOY MAKERS PLAN A JOINT INVESTMENT IN A 540ACRE INDUSTRIAL PARK IN CENTRAL CHINA DESPITE OBJECTIONS FROM TAIWAN'S GOVERNMENT THAT SUCH LARGE PROJECTS COULD AGGRAVATE AN INDUSTRIAL EXODUS TO THE MAINLAND THE TOY MAKERS PLAN TO SIGN A CONTRACT WITH A HONG KONG DEVELOPER THIS WEEK TAIPEI REQUIRES APPROVAL FOR ALL INVESTMENTS IN CHINA AND COMPANIES THAT INVEST WITHOUT THE GOVERNMENT NOD CAN BE FINED AS MUCH AS 555 MILLION THE TOY MAKERS SAY THE PROJECT IS LEGAL BECAUSE TAIWAN ALLOWS INDIRECT INVESTMENT IN TOY FACTORIES IN CHINA AUSTRALIAN LABOR UNIONS FRIDAY ENDORSED THE GOVERNMENT'S PLAN TO DECENTRALIZE THE LABOR MARKET SYSTEM BUT EMPLOYER GROUPS WHICH HAVE ACCUSED THE GOVERNMENT OF GIVING IN TO UNION DEMANDS APPEAR LIKELY TO FIGHT THE CHANGES AUSTRALIA'S SYSTEM FOR SETTING WAGES AND WORKING CONDITIONS CURRENTLY IS DOMINATED BY A CENTRALIZED LABOR COURT WHICH ARBITRATES DISPUTES THE GOVERNMENT INSTEAD WANTS TO ENCOURAGE SETTING WAGES AND CONDITIONS THROUGH NEGOTIATIONS BETWEEN EMPLOYERS AND WORKERS OR UNIONS THE NEW SYSTEM INCLUDES NATIONAL STANDARDS TO GUARANTEE MINIMUM WAGES EQUAL PAY FOR MEN AND WOMEN PARENTAL LEAVE AND PROTECTION AGAINST UNFAIR DISMISSAL FRANCE'S LOUVRE OPENED A NEW 50000SQUAREYARD UNDERGROUND ADDITION WHICH HOUSES A PARKING LOT SHOPPING CENTER AND AN INVERTED GLASS PYRAMID SISTER OF THE GIANT PYRAMID UNVEILED IN 1989 TO MARK THE FIRST PHASE OF THE MUSEUM'S RENOVATION MUSEUM OFFICIALS HAVE ALLOWED FRENCH AND FOREIGN MERCHANTS TO SET UP SHOP IN THE MALL IGNORING FRENCH COMPLAINTS ABOUT THE THREAT OF A CULTURAL INVASION BUT REQUESTS FOR STORE LEASES HAD TO GET A LOUVRE QUALITY STAMP OF APPROVAL FROM AN ETHICS PANEL MALAYSIAN PRIME MINISTER MAHATHIR MOHAMAD INVITED FOREIGN INVESTORS TO BUY STAKES IN SOME PRIVATIZED UTILITY PROJECTS ESPECIALLY THOSE THAT REQUIRE TECHNICAL EXPERTISE NOT AVAILABLE LOCALLY SUCH AS THE NATIONAL SEWERAGE PROJECT AMONG THE UTILITIES PRIVATIZED SO FAR ARE POWER GENERATION AND DISTRIBUTION TELECOMMUNICATIONS AND HIGHWAYS CHINA'S GOVERNMENT HAS PUT INTO EFFECT STRICT REGULATIONS BARRING MOST INDIVIDUALS FROM USING SATELLITE DISHES THAT BRING IN FOREIGN TELEVISION BROADCASTS SATELLITE DISHES THAT RECEIVE MTV BBC NEWS AND OTHER ALTERNATIVES TO THE STRICTLY CONTROLLED STATERUN TV HAVE PROLIFERATED IN CHINA BECAUSE OF ECONOMIC REFORMS THAT MAKE THEM AFFORDABLE AT ABOUT 500 AND EASILY AVAILABLE IN MAJOR CITIES POLICE DECREED MORE THAN A YEAR AGO THAT INDIVIDUALS COULD NOT BUY SATELLITE DISHES BUT THE BAN HAS BEEN LARGELY IGNORED NOW THE GOVERNMENT HAS WEIGHED IN WITH ITS OWN REGULATIONS PRODUCTION IMPORT SALES AND USE OF THE SATELLITE DISHES NOW REQUIRE GOVERNMENT APPROVAL INDIVIDUALS CANNOT INSTALL THE DEVICES UNLESS THEY CAN CONVINCE AUTHORITIES THAT THEY HAVE A SPECIAL NEED THOSE WHO ALREADY HAVE THE DISHES MUST OBTAIN APPROVAL WITHIN SIX MONTHS TO KEEP THEM UNAUTHORIZED USE OF SATELLITE DISHES CARRIES PENALTIES OF AS MUCH AS 875 FOR INDIVIDUALS AND 8750 FOR ENTERPRISES AS WELL AS CONFISCATION OF THE EQUIPMENT TAIWAN PREMIER LIEN CHAN SAID HIS COUNTRY WOULD NOT MAINTAIN ITS UNOFFICIAL PRESENCE IN HONG KONG IF THE BRITISH COLONY LOSES ITS FREEDOM AFTER 1997 WHEN IT REVERTS TO CHINESE RULE NORWEGIAN LAWMAKERS CERTIFIED THE RESULTS OF SEPTEMBER'S PARLIAMENTARY ELECTIONS DISMISSING VOTER COMPLAINTS ABOUT A BREAKDOWN IN A COMPUTER VOTING SYSTEM THAT WAS BEING TESTED IN OSLO ON ELECTION DAY 9310110053 931011 BUSINESS BRIEF AGIP PETROLI SPA ITALIAN PETROLEUM CONCERN EXPECTS GOOD' 1993 PROFIT THE CHAIRMAN OF AGIP PETROLI SPA THE PETROLEUM BRANCH OF ITALY'S STATE ENERGY HOLDING ENTE NAZIONALE IDROCARBURI OR ENI PREDICTED GOOD EARNINGS FOR 1993 THIS YEAR WE SHOULD CLOSE ACCOUNTS IN LINE WITH LAST YEAR SAID THE OFFICIAL ANGELO FERRARI MR FERRARI'S COMMRTED BY ITALIAN NEWS AGENCY ANSA IN 1992 AGIP REPORTED THAT PROFIT INCREASED 79 TO 140 BILLION LIRE 872 MILLION FROM 78 BILLION LIRE THE YEAR BEFORE MR FERRARI SAID THAT BY THE END OF THIS YEAR AGIP SHOULD HAVE COMPLETED THE NECESSARY PROCEDURES FOR SPINNING OFF TWO UNITS OF THE COMPANY LIQUIPIBIGAS AND AGIP ARGENTINA DETAILS WEREN'T PROVIDED 9310110051 931011 HEARD ON THE STREET SUPERCOMPUTER MAKER KENDALL SQUARE'S EFFORT TO CRACK BUSINESS MARKET HAS SOME SKEPTICS BY JOHN R DORFMAN AND WILLIAM M BULKELEY STAFF REPORTERS OF THE WALL STREET JOURNAL KENDALL SQUARE RESEARCH OF WALTHAM MASS MAKES SUPERCOMPUTERS WITH THE WHIZBANG APPROACH KNOWN AS MASSIVELY PARALLEL PROCESSING UNTIL RECENTLY KENDALL'S STOCK PERFORMANCE HAS BEEN IMPRESSIVE AFTER GOING PUBLIC IN MARCH 1992 IT DOUBLED IN 18 MONTHS TO PEAK AT 25 3/4 LAST MONTH BUT NOW IT'S BACK DOWN TO 20 1/2 OFF 1/2 FRIDAY SHORT SELLERS INVESTORS WHO BET THAT A STOCK WILL DECLINE ARE MAKING MASSIVELY PARALLEL DENUNCIATIONS OF KENDALL THEY CHALLENGE THE COMPANY'S CLAIM THAT IT IS READY TO PENETRATE THE COMMERCIAL MARKET LIKE INDY RACE CARS SUPERCOMPUTERS ARE NOTORIOUSLY FINICKY MACHINES CRASHING OFTEN AS RESEARCHERS PUSH THEIR LIMITS THAT'S OK WITH SCIENTISTS WHO WILL SACRIFICE RELIABILITY FOR PERFORMANCE BUT BUSINESSMEN EXPECT COMPUTERS TO WORK RELIABLY FOR MONTHS AT A TIME THEY CAN'T AFFORD TO HAVE A COMPUTER CRASH WHILE IT IS ISSUING PAYROLL CHECKS OR PROCESSING TRANSACTIONS THE BUSINESS MARKET FOR SUPERCOMPUTERS AT ABOUT 31 BILLION A YEAR IS FAR BIGGER THAN THE SCIENTIFIC AND RESEARCH MARKET WHICH IS ABOUT 4 BILLION HENRY BURKHARDT III KENDALL'S PRESIDENT SAYS KENDALL IS READY FOR A BIG PUSH TO GAIN COMMERCIAL AND INDUSTRIAL CUSTOMERS SKEPTICS DOUBT THAT ITS MACHINES ARE READY HORST SIMON A COMPUTER SCIENTIST AT NASA'S AMES LABORATORY WHO ALSO WORKS FOR COMPUTER SCIENCES CORP SAYS THAT LAST YEAR WHEN AMES RESEARCHERS TRIED TO RUN SPEED TESTS ON KENDALL'S KSR1 MACHINE AT OTHER LABORATORIES THEY HAD TROUBLE GETTING A MACHINE TO FUNCTION LONG ENOUGH TO RUN THE TESTS MALVIN KALOS DIRECTOR OF THE CORNELL UNIVERSITY SUPERCOMPUTING CENTER RAVES ABOUT THE MACHINE'S ABILITY TO DRAW MODELS OF MOLECULES THAT HADN'T BEEN UNDERSTOOD BEFORE ASKED ABOUT RELIABILITY HE SAYS THE MACHINE WE HAVE NOW IS VERY SOLID IT RAN FOR A WEEK RECENTLY WITHOUT A CRASH THE COMPANY SAYS IT HAS BEEN INCREASING THE AMOUNT OF TIME BETWEEN CRASHES MR BURKHARDT SAYS ONE INSTALLATION AT DELOITTE & TOUCHE HAS GONE MORE THAN FOUR MONTHS WITHOUT A CRASH BUT CRASHES ARE STILL TOO FREQUENT SAYS BOB TASKER CHIEF EXECUTIVE OFFICER OF APPLIED INFORMATION TECHNOLOGY A COMPUTER CONSULTANT IN BOSTON HE THINKS THAT IF KENDALL DARES ENTER THE BUSINESS MARKET AT ITS CURRENT STATE OF DEVELOPMENT IT WILL BE POUNDED BY SUCH COMPETITORS AS INTERNATIONAL BUSINESS MACHINES CRAY RESEARCH AND DIGITAL EQUIPMENT KENDALL HAS TALKED ABOUT ITS CONTRACTS WITH TWO COMMERCIAL CUSTOMERS AMERICAN AIRLINES PARENT AMR AND NEODATA A DIRECTMAIL COMPANY NEITHER HAS PAID KENDALL ANY CASH FOR EQUIPMENT YET THOUGH AMR EXPECTS TO PAY AN UNDISCLOSED AMOUNT THIS YEAR SO FAR KENDALL HAS MADE ONLY ONE SMALL COMMERCIAL SALE MR BURKHARDT EXPECTS THREE MORE SALES TO COMMERCIAL OR INDUSTRIAL CUSTOMERS THIS YEAR KENDALL'S ACCOUNTING HAS ALSO DRAWN SOME CRITICISM ONE SKEPTIC IS LOREN KELLOGG COPUBLISHER OF FINANCIAL STATEMENT ALERT AN INVESTMENT RESEARCH SERVICE IN SEATTLE THAT DIGS INTO CORPORATE FINANCIAL REPORTING IN OUR OPINION KENDALL RECOGNIZES REVENUES TOO EARLY HE SAYS IN A REPORT ON THE STOCK IN THE SIX QUARTERS THE COMPANY HAS BEEN PUBLIC MR KELLOGG EXPLAINS IT HAS REPORTED REVENUE TOTALING 454 MILLION BUT ACTUALLY RECEIVED ONLY 257 MILLION IN CASH FROM CUSTOMERS THE COMPANY SAYS IT IS FOLLOWING GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BUT SUCH A WIDE GULF BETWEEN THE TWO FIGURES IS OFTEN A WARNING SIGN FOR STOCKHOLDERS MR KELLOGG BELIEVES RECEIVABLES TOTALED 209 MILLION ON JUNE 26 UP FROM 24 MILLION A YEAR EARLIER MR KELLOGG NOTES MR BURKHARDT SAYS THAT'S BECAUSE KENDALL OFFERS GENEROUS PAYMENT TERMS TO CUSTOMERS AS A COMPETITIVE TACTIC HE SAYS KENDALL OFTEN LETS UNIVERSITIES TAKE SIX TO NINE MONTHS TO PAY AS GRANT MONEY AND GOVERNMENT FUNDS TRICKLE IN THE BEARS ALSO GROWL THAT KENDALL'S REVENUE WHICH WAS A LITTLE OVER 20 MILLION LAST YEAR AND IS PROJECTED BY THE COMPANY TO BE 60 MILLION THIS YEAR WOULD BE SMALLER IF IT WEREN'T FOR GENEROUS RESEARCH GRANTS KENDALL MAKES TO UNIVERSITIES THAT BUY ITS COMPUTERS KENDALL SAYS SUCH GRANTS ARE COMMON INDUSTRY PRACTICE AND ARE SMALL TYPICALLY 5000 TO 25000 HOWEVER EDWARD S DAVIDSON AN ELECTRICAL ENGINEERING PROFESSOR AT THE UNIVERSITY OF MICHIGAN SAYS KENDALL HAS PROMISED SEVERAL HUNDRED THOUSAND DOLLARS IN GRANTS OVER SEVERAL YEARS TO PROMOTE A UNIVERSITY OF MICHIGAN PROJECT TO CONVERT AUTO DESIGN SOFTWARE TO THE KSR1 ASKED ABOUT THIS MR BURKHARDT SAID GRANTS SOMETIMES DO RUN INTO SUBSTANTIAL AMOUNTS BUT ARE LEGITIMATE EXPENSES TO FOSTER SOFTWARE DEVELOPMENT NOT DISGUISED SALES INCENTIVES AS THE SHORTS SUGGEST 9310110050 931011 LETTERS TO THE EDITOR SCHOOL PRAYER ISSUE IS STILL UNSETTLED YOUR AUG 18 ARTICLE STATES MOVE TO ALLOW PRAYER IN SCHOOLS GIVES THE IMPRESSION THAT THE ISSUE OF STUDENTLED PRAYER IS STILL UNSETTLED IN FACT ORGANIZED PRAYER IN THE PUBLIC SCHOOLS HAS LONG BEEN HELD UNCONSTITUTIONAL THE FIFTH CIRCUIT COURT OF APPEALS' DECISION REFERRED TO IN THE ARTICLE JONES V CLEAR CREEK INDEPENDENT SCHOOL DISTRICT CARVED OUT A NARROW EXCEPTION TO EXISTING LAW REGARDING SCHOOL PRAYER IN THE PARTICULAR CONTEXT OF GRADUATION INVOCATIONS AND BENEDICTIONS THE COURT PERMITTED SUCH PRAYERS ON THE GROUNDS THAT THEY PURPORTEDLY SERVE THE SECULAR PURPOSE OF CREATING A MEANINGFUL GRADUATION CEREMONY THAT PROVIDES ENCOURAGEMENT TO FINISH SCHOOL THIS ANOMALOUS RULING CONFLICTS WITH THE UNDERLYING PRINCIPLE OF THE CONSTITUTION'S ESTABLISHMENT CLAUSE NAMELY THAT AS RECENTLY EXPRESSED BY JUSTICE KENNEDY THE PRESERVATION AND TRANSMISSION OF RELIGIOUS BELIEFS AND WORSHIP IS A RESPONSIBILITY AND A CHOICE COMMITTED TO THE PRIVATE SPHERE WHICH ITSELF IS PROMISED FREEDOM TO PURSUE THAT MISSION THE THIRD CIRCUIT LAST JUNE GRANTED A TEMPORARY INJUNCTION AGAINST STUDENTLED PRAYER AT A NEW JERSEY SCHOOL DISTRICT'S GRADUATION EXERCISES THE COURT EXPRESSLY STATED IN ITS ORDER THAT THE FACT THAT THE SCHOOL BOARD HAS CHOSEN TO DELEGATE THE DECISION REGARDING ONE SEGMENT OF THE GRADUATION CEREMONY TO THE MEMBERS OF THE GRADUATING CLASS DOES NOT ALTER THAT SPONSORSHIP BY THE SCHOOL AND DOES NOT DIMINISH THE EFFECT OF A PRAYER ON STUDENTS WHO DO NOT SHARE THE SAME OR ANY RELIGIOUS PERSPECTIVE THIS CONFLICT BETWEEN THE CIRCUITS INEVITABLY WILL BRING THIS ISSUE BACK TO THE SUPREME COURT WHICH IF IT ACTS CONSISTENTLY WITH DECADES OF ESTABLISHMENT CLAUSE PRECEDENT WILL ONCE AGAIN RULE THAT PUBLIC SCHOOLS ARE NOT AN APPROPRIATE SETTING FOR ANY ORGANIZED SCHOOL PRAYER 9310110049 931011 STRATEGIC MOVE DAEWOO GROUP SHIFTS ITS FOCUS TO MARKETS IN THE THIRD WORLD KOREAN GIANT HIT BY IMAGE OF POOR QUALITY TURNS FROM INDUSTRIAL NATIONS CHAIRMAN KIM'S WORK ETHIC BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA TO SEE THE FUTURE OF DAEWOO GROUP TAKE A LOOK AT THE WINDSHIELD STICKERS ON THE NEWEST GENERATION OF ESPERO AND LE MANS SEDANS ASSEMBLED AT THE DAEWOO MOTOR CO PLANT JUST OUTSIDE SEOUL ALMOST EVERY CAR IS HEADING FOR A DEVELOPING COUNTRY THE PHILIPPINES COLOMBIA PAKISTAN WITH THEM GO DAEWOO'S HOPES TO RECLAIM ITS PAST PROSPERITY DAEWOO GROUP KOREA'S FOURTHLARGEST CONGLOMERATE HAS SPENT MOST OF THE PAST FEW YEARS TRYING TO SHED ITS IMAGE AS A DEBTSTRAPPED PRODUCER OF CUTRATE CARS ELECTRONIC EQUIPMENT AND HOME APPLIANCES THROUGH ENHANCED ENGINEERING IT HAS LARGELY SUCCEEDED BUT RATHER THAN AIMING AT DEVELOPEDCOUNTRY MARKETS WHICH HAD GOBBLED UP KOREAN GOODS IN THE EARLY 1980S BUT HAVE TURNED AWAY FROM THEM BECAUSE OF ALLEGEDLY POOR QUALITY AND AFTERSALES SERVICE DAEWOO IS CONCENTRATINGTHE THIRD WORLD THIS YEAR ALONE CHAIRMAN KIM WOO CHOONG IS COMMITTING SOME 8 BILLION TO MAKE AND SELL DAEWOO GOODS IN EASTERN EUROPE CENTRAL ASIA AND LATIN AMERICA WHERE DAEWOO HOPES TO TAP NEW CONSUMERS AND CHEAP LABOR THIS IS A MODEST GOAL IN A COUNTRY THAT LESS THAN A DECADE AGO WAS PERCEIVED AT HOME AND ABROAD AS THE NEXT JAPAN BUT IF SUCCESSFUL DAEWOO COULD LAUNCH A NEW TREND FOR KOREAN CONGLOMERATES KNOWN AS CHAEBOLS MANY OF WHOSE PRODUCTS ALSO HAVE FAILED TO SELL WELL IN THE WORLD'S MORE SOPHISTICATED MARKETS SUCCESS ALSO WOULD BRING A GRACEFUL END TO CHAIRMAN KIM'S CAREER THE 54YEAROLD MR KIM WHO FOUNDED DAEWOO IN 1967 CONTROLS A COMPANY THAT LAST YEAR GENERATED 20 BILLION ON SALES OF EVERYTHING FROM HEATING OIL TO SATELLITE EQUIPMENT MR KIM'S FEROCIOUS WORK ETHIC IS LEGENDARY EVEN IN A COUNTRY OF SIXDAY WORK WEEKS HE TRAVELS ON BUSINESS MORE THAN 200 DAYS A YEAR AND BOASTS OF NEVER TAKING A DAY OFF HE IS EQUALLY DEMANDING OF HIS EMPLOYEES MOST CHAEBOL CHAIRMEN LET WORKERS TAKE OFF ON SANDWICH DAYS THE SATURDAYS BETWEEN A FRIDAY HOLIDAY AND SUNDAY NOT MR KIM BUT HE IS VIEWED WITH CONSIDERABLE AFFECTION WITHIN THE COMPANY A TYPICAL VIEW IS EXPRESSED BY WB KIM A GENERAL MANAGER OF DAEWOO HEAVY INDUSTRIES CO WHO HAS WORKED FOR THE MACHINERY MAKER SINCE THE CHAIRMAN SAVED IT FROM BANKRUPTCY 17 YEARS AGO AND WHO COULD EASILY WORK FOR HIGHERPAYING RIVAL CHAEBOLS SUCH AS HYUNDAI OR SAMSUNG BUT THEY DON'T HAVE CHAIRMAN KIM HE SAYS THE CHAIRMAN IS VERY STRONG HE GETS THE BUSINESS AND WE FOLLOW WE'LL FOLLOW HIM ANYWHERE CHAIRMAN KIM PERSONIFIED KOREA'S LIGHTNINGFAST INDUSTRIALIZATION IN THE 1970S AND 1980S HE APPEARED ON THE COVERS OF GLOBAL NEWS AND BUSINESS MAGAZINES AND DINED WITH WORLD LEADERS DEALS CLOSED IN HIS WAKE WHEREVER THERE WAS A MARKET TO SNATCH FROM ESTABLISHED MANUFACTURERS DAEWOO SWOOPED IN THE ROAD HASN'T BEEN SMOOTH RECENTLY HOWEVER AND NEW CHALLENGES LIE AHEAD MOST RELATE TO FINANCING DAEWOO'S 4TO1 DEBTTOEQUITY RATIO THOUGH WELL BELOW ITS 13TO1 LEVEL A DECADE AGO IS STILL UNCOMFORTABLY HIGH FOR SOME FOREIGN LENDERS IN ADDITION MR KIM LIKE OTHER KOREAN INDUSTRIALISTS IS UNDER GOVERNMENT PRESSURE TO HELP DILUTE THE CHAEBOLS' GRIP ON KOREAN INDUSTRY BY DISMANTLING HIS GROUP SMALL AND MIDSIZED ENTERPRISES HAVE WITHERED IN THE SHADOW OF KOREA'S TOP 30 CHAEBOLS WHOSE REVENUES ACCOUNT FOR MORE THAN HALF THE COUNTRY'S GROSS NATIONAL PRODUCT BEFORE MR KIM CAN STREAMLINE HIS EMPIRE HE MUST UNWIND A WEB OF CROSSSHAREHOLDINGS THAT ALLOWS PROFITABLE AFFILIATES TO SUPPORT AILING ONES IT IS A TASK MOST CHAEBOLS FACE TOUGHER ACCOUNTING AND ANTITRUST LAWS ARE EXPECTED TO ERADICATE CROSSSHAREHOLDINGS OVER THE NEXT FIVE YEARS BUT FEW INDUSTRIALISTS USE CROSSSHAREHOLDINGS AS DEFTLY AS MR KIM DOES AND FEW GROUPS STAND TO LOSE AS MUCH BY THEIR ERADICATION AS DAEWOO TAKE FOR EXAMPLE MR KIM'S TURNAROUND OF A NEARLY BANKRUPT GOVERNMENT SHIPYARD THAT DAEWOO TOOK OVER IN 1978 AT ONE POINT THE YARD NEEDED CASH INFUSIONS OF BILLIONS OF WON A DAY THE MONEY CAME FROM DAEWOO AFFILIATES AS WELL AS BANKS NOW THAT COMPANY DAEWOO SHIPBUILDING & HEAVY INDUSTRIES CO IS KOREA'S LEADING SHIPBUILDER WITH 1992 PROFIT OF 211 BILLION WON 267 MILLION ON 15 TRILLION WON IN SALES THE CLOSELY HELD COMPANY WILL BE MERGED WITH PUBLICLY TRADED DAEWOO HEAVY INDUSTRIES NEXT YEAR A BIG WINNER IN DAEWOO SHIPBUILDING'S REBOUND IS DAEWOO'S TELECOMMUNICATIONS ARM DAEWOO TELECOM LTD WHICH IN 1987 PURCHASED A 15 STAKE IN THE SHIPYARD UNTIL RECENTLY A BIG LOSER WAS DAEWOO HEAVY WHICH HAD BEEN FORCED TO DIVERT BILLIONS OF WON IN REVENUE TO KEEP THE SHIPBUILDER AFLOAT THIS YEAR MR KIM HAS FOCUSED ON DAEWOO MOTOR A MONEYLOSING AUTO MAKER THAT LAST YEAR ENDED A GENERALLY FRUITLESS JOINTVENTURE WITH GENERAL MOTORS CORP THE INITIAL RESULTS ARE ENCOURAGING DAEWOO MOTOR HAS INVESTED HEAVILY IN PRODUCT DESIGN AND QUALITY CONTROL AND HAS SET UP A NETWORK OF SERVICE CENTERS AND AUTO SHOWROOMS TO BETTER COMPETE WITH HYUNDAI MOTOR CO AND KIA MOTORS CORP DAEWOO MOTOR'S DOMESTIC SALES ARE UP SHARPLY BUT NOT NEARLY AS DRAMATICALLY AS ITS EXPORTS IN THE FIRST NINE MONTHS OF THIS YEAR THE VOLUME OF DAEWOO CARS SOLD ABROAD ROSE 158 FROM A YEAR EARLIER MOST OF THEM WENT TO LATIN AMERICA AND THE MIDEAST CAR SALES TO THE US JAPAN AND THE EUROPEAN COMMUNITY HAVE DECLINED DAEWOO ISN'T ALONE AMONG KOREAN COMPANIES IN LOSING MARKET SHARE IN THE INDUSTRIALIZED WORLD IN THE 1993 FIRST HALF KOREAN PRODUCTS ACCOUNTED FOR 295 OF TOTAL US IMPORTS THE LOWEST LEVEL SINCE 1985 EVEN THOUGH THE STEEP APPRECIATION OF THE JAPANESE YEN MAKES KOREAN PRODUCTS RELATIVELY CHEAP IN ALL LAST YEAR KOREA'S FOUR BIGGEST TRADING PARTNERS THE US JAPAN HONG KONG AND GERMANY ACCOUNTED FOR HALF ITS TOTAL EXPORTS DOWN FROM 59 IN 1990 BUT TOTAL EXPORTS ARE EXPECTED TO RISE 6 THIS YEAR LARGELY BECAUSE OF SALES TO DEVELOPING COUNTRIES WHILE EXPANDING INTO THE THIRD WORLD MOST OTHER CHAEBOLS ARE LIMITING THEMSELVES TO DISTRIBUTION NETWORKS MR KIM BY CONTRAST IS RELOCATING MUCH OF HIS GROUP'S INDUSTRIAL BASE TO REMOTE AREAS OF THE WORLD IN THE PAST NINE MONTHS HE HAS SIGNED CONTRACTS OR ENTERED INTO NEGOTIATIONS TO BUILD AND SELL TELEVISION SETS IN UZBEKISTAN HOME APPLIANCES IN ST PETERSBURG RUSSIA CARS IN IRAN AND PLYWOOD IN BURMA AND ONCE AGAIN HE IS GRACING THE COVERS OF GLOBAL BUSINESS JOURNALS UNLIKE PRACTICALLY ALL OF KOREA'S MICROMANAGING INDUSTRIALISTS MR KIM NOW LEAVES ROUTINE DECISIONS TO HIS SENIOR EXECUTIVES LIKE HIM THEY ALL EMPHASIZE MARKET SHARE INNOVATION IS SECONDARY ONE OF THESE EXECUTIVES IS BAE SOONHOON A STANFORDTRAINED ENGINEER AND PRESIDENT OF DAEWOO ELECTRONICS CO AT HOME HIS COMPANY LAGS BEHIND ITS RIVALS GOLDSTAR CO AND SAMSUNG ELECTRONICS CO BUT IT IS A STAR IN UZBEKISTAN WHERE THE COMPANY AND A LOCAL GOVERNMENT AGENCY ARE BUILDING A JOINTVENTURE 60 MILLION FACTORY TO MAKE CORDLESS PHONES TELEVISION SETS AND VACUUM CLEANERS FOR LOCAL AND OVERSEAS MARKETS DAEWOO IS BUILDING SIMILAR PLANTS IN VIETNAM AND TATARSTAN THINK OF THEM MR BAE SAYS AS DAEWOO'S MUNITIONS WORKS IN THE WAR FOR GLOBAL MARKET SHARE WE'RE BUILDING A CONVENTIONAL TYPE OF CONSUMER GOOD HE SAYS IN THE NEXT DECADE OR SO THE COMPETITION WILL BE IN MANUFACTURING RATHER THAN IN NEW PRODUCTS THAT'S HOW WE WILL SUSTAIN OURSELVES WHEN HARD CURRENCY IS SCARCE DAEWOO ACCEPTS BARTER THE UZBEKS ARE PAYING FOR THEIR HALF OF THE JOINTVENTURE FACTORY WITH COTTON WHICH DAEWOO'S TRADING ARM DAEWOO CORP SELLS ON THE WORLD MARKET THAT MAKES YOO KI BUM DAEWOO CORP'S PRESIDENT A BUSY MAN HE HAS SPENT 18 MONTHS SEALING DEALS OFTEN HAGGLING WITH CUSTOMS OFFICIALS FROM THE NEW COUNTRIES IN THE FORMER SOVIET UNION SHIPPING PARTS IS TROUBLESOME IT USED TO BE WE'D TRANSPORT GOODS ON A RAILROAD RUN BY ONE AUTHORITY MR YOO SAYS NOW IT RUNS THROUGH TWO TO THREE DIFFERENT COUNTRIES WE HAVE TO GET APPROVALS FOR EACH SHIPMENT BUT FIRST WE HAVE TO TEACH THEM ABOUT LETTERS OF CREDIT SOME EXECUTIVES AT RIVAL CHAEBOLS CONSIDER DAEWOO'S STRATEGY SHORTSIGHTED ALTHOUGH DAEWOO PRODUCTS HAVE IMPROVED THEY SAY FEW ARE COMPETITIVE IN BOTH PRICE AND QUALITY IN THE DEVELOPED WORLD BY THE TIME COUNTRIES SUCH AS UZBEKISTAN AND COLOMBIA HAVE GENERATED HEALTHY DEMAND FOR VIDEOCASSETTE RECORDERS AND WASHING MACHINES DAEWOO WILL HAVE TO COMPETE WITH MANUFACTURERS FROM COUNTRIES SUCH AS CHINA AND MALAYSIA TO STAY IN THE MARKET DAEWOO SHOULD START DEVELOPING ENGINEERING AND A TECHNOLOGY BASE A HYUNDAI MOTOR DIRECTOR SAYS AN EVENBIGGER CONCERN IS HOW DAEWOO WILL FINANCE ITS MOVE INTO THE DEVELOPING WORLD ITS OFFICIALS SAY THEY CAN EASILY RAISE THE NECESSARY FUNDS THROUGH FOREIGN LOANS DOMESTIC BORROWING AND NEW EQUITY HOWEVER SOME OF DAEWOO'S BANKERS ARE CONCERNED THEY CITE THE GROUP'S PROPOSAL TO BUILD AN EXPRESSWAY IN PAKISTAN AT AN ESTIMATED COST OF NEARLY 1 BILLION ALTHOUGH THE PAKISTANI GOVERNMENT WHICH HAS FOREIGN RESERVES OF ONLY ABOUT 500 MILLION HAS BACKED THE ROAD PROJECT WITH LOAN GUARANTEES KOREA'S STATERUN EXPORTIMPORT BANK DECLINED TO HELP GOVERNMENT SUPPORT FOR DAEWOO'S OTHER ENTERPRISES IS ALSO LIMITED BANKERS ALSO WORRY THAT THE KOREAN GOVERNMENT'S IMPENDING FINANCIAL REFORMS ESPECIALLY THE TIGHTER ACCOUNTING STANDARDS AND ANTITRUST LAWS WILL HIT DAEWOO AT A BAD TIME GIVEN ITS CAPITALSPENDING SPREE CHAIRMAN KIM'S NIMBLE USE OF THE GROUP'S CROSSSHAREHOLDINGS A STRATEGY THAT IS TECHNICALLY ILLEGAL UNDER CURRENT LAW BUT NONETHELESS WIDESPREAD IN KOREA IS A MAJOR ASSET IN AN ECONOMY WHERE INTEREST RATES ARE KEPT RELATIVELY HIGH TO CURB INFLATION A RECENT BOND ISSUE CONVERTIBLE INTO SHARES OF DAEWOO TELECOM WHICH RAISED 50 MILLION REVEALS HOW MONEY CIRCULATES FROM ONE DAEWOO AFFILIATE TO ANOTHER ACCORDING TO THE PROSPECTUS ALL BUT 5 MILLION OF THE FUNDS WERE TO BE USED TO BUY EQUIPMENT TO MAKE SIXINCH WAFERS FOR THE COMPANY'S MONEYLOSING SEMICONDUCTOR DIVISION THE REMAINDER WAS TO BE INVESTED IN MASSACHUSETTSBASED LEADING EDGE PRODUCTS INC WHICH DAEWOO TELECOM ACQUIRED IN 1989 AND HAS SINCE BEEN TRYING TO NURSE FROM BANKRUPTCY IN FACT THE COMPANY HAS INVESTED 132 MILLION OF THE FUNDS IN LEADING EDGE AND ONLY 16 MILLION TOWARD SEMICONDUCTORS THE BALANCE IS TO BE INVESTED IN VARIOUS TELECOMMUNICATIONS EQUIPMENT IN THE NEAR FUTURE ACCORDING TO DAEWOO TELECOM OFFICIALS SINCE THE BOND ISSUE DAEWOO TELECOM HAS LOST INTEREST IN SEMICONDUCTORS LAST MONTH IT SOLD THE DIVISION TO DAEWOO CORP FOR 55 BILLION WON DAEWOO TELECOM IS SOMETIMES CALLED DAEWOO BANK' BECAUSE OF ITS LARGE PAID IN CAPITAL ABILITY TO RAISE FUNDS AND STAKES IN OTHER AFFILIATES SAYS B CHANDLER GONYEA AN ANALYST WITH DAEWOO SECURITIES CO BUT IF THE GOVERNMENT IS REALLY SERIOUS ABOUT PHASING OUT CROSSHOLDINGS A LOT OF THINGS ARE GOING TO CHANGE AROUND HERE 9310110047 931011 BUSINESS BRIEFS GENERAL ELECTRIC CAPITAL CORP A UNIT OF GENERAL ELECTRIC CO AGREED TO PROVIDE PRIVATELABEL CREDIT CARD SERVICE FOR VENTURE STORES INC O'FALLON MO WILMINGTON TRUST CORP COMPLETED THE ACQUISITION OF FREEDOM VALLEY BANK FOR 1185 MILLION PEKERSON PATTON MANAGEMENT CORP NASHVILLE TENN PURCHASED WRIGHT & LOPEZ INC AND PRESSURE CONCRETE CONSTRUCTION CO FROM SOUTHEASTERN PUBLIC SERVICE CO TERMS WEREN'T DISCLOSED SIGNAL TECHNOLOGY CORP ACQUIRED INNOWAVE INC WHICH WILL BE INTEGRATED INTO SIGNAL'S ST MICROWAVE UNIT TERMS WEREN'T DISCLOSED 9310110045 931011 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ADDED FIVE SECURITIES DURING THE WEEK WHILE THE AMERICAN STOCK EXCHANGE ADDED TWO NEW LISTINGS AT THE NYSE INCLUDED AMERICAN DEPOSITARY SHARES OF GERMAN INDUSTRY GROUP AND AUTO MAKER DAIMLERBENZ AG STUTTGART UNDER DAI AND PROTECTIVE LIFE CORP BIRMINGHAM ALA AN INSURANCE COMPANY PREVIOUSLY TRADED OVERTHECOUNTER UNDER PL THE NYSE ALSO ADDED THREE INITIAL OFFERINGS DETROIT DIESEL CORP DETROIT AN ENGINE MAKER UNDER DDC TUCKER PROPERTIES CORP NORTHBROOK ILL UNDER TUC A REAL ESTATE INVESTMENT TRUST AND URBAN SHOPPING CENTERS CHICAGO A REAL ESTATE INVESTMENT TRUST UNDER URB THE AMEX BEGAN TRADING GLOBAL SMALL CAP FUND INC NEW YORK A CLOSEDEND FUND AN INITIAL OFFERING UNDER GSG AND PHOENIX NETWORK INC SAN FRANCISCO A RESELLER OF LONG DISTANCE TELECOMMUNICATION SERVICES UNDER PHS GLOBAL PREVIOUSLY TRADED ON THE NASDAQ SMALL CAP MARKET INITIAL OFFERINGS LISTED ON THE NASDAQ NATIONAL MARKET INCLUDED COMMON STOCK OF MAXIM GROUP INC MARIETTA GA A FRANCHISER FOR RETAIL FLOOR COVERING DEALERS UNDER MAXM AND WARRANTS OF MAXIM UNDER MAXMW ATCHISON CASTING CORP ATCHISON KAN A STEEL CASTINGS COMPANY UNDER ACCX GARTNER GROUP INC STAMFORD CONN A RESEARCH AND ANALYSIS FIRM FOR THE INFORMATION TECHNOLOGY INDUSTRY UNDER GART NATIONAL PICTURE & FRAME CO GREENWOOD MISS A MAKER AND MARKETER OF PICTURE FRAMES UNDER NPAF COMMERCIAL BANKSHARES INC MIAMI FLA A BANK HOLDING COMPANY UNDER CLBK AND IVI PUBLISHING INC EAGEN MINN A PUBLISHER OF MEDICAL AND HEALTH CARE INFORMATION IN INTERACTIVE MULTIMEDIA FORMATS UNDER IVIP THE FOLLOWING TWO COMPANIES WHICH FORMERLY TRADED ON THE NASDAQ SMALL CAP MARKET WERE APPROVED FOR THE NASDAQ NATIONAL MARKET MAGNETECH CORP FORT LAUDERDALE FLA A VIDEO AND AUDIO TAPE DUPLICATING SERVICE COMPANY UNDER TAPE AND SPEIZMAN INDUSTRIES INC CHARLOTTE NC A DISTRIBUTOR OF SOCK KNITTING MACHINES UNDER SPZN THE PHILADELPHIA STOCK EXCHANGE WILL BEGIN TRADING PUT AND CALL OPTIONS AND LEAPS OR LONGTERM OPTIONS ON MARRIOTT INTERNATIONAL INC THE SPINOFF UNIT OF MARRIOTT CORP ON OCT 12 WHEN OPTIONS ON THE RENAMED HOST MARRIOTT CORP ALSO WILL BEGIN TRADING 9310110044 931011 LOT POLISH AIRLINES TAKES ON NEW LOOK BUT THE STRUGGLE TO RESHAPE THE CARRIER CONTINUES BY DANIEL MICHAELS SPECIAL TO THE WALL STREET JOURNAL WARSAW SIX YEARS AGO A HANDFUL OF MANAGERS AT LOT POLISH AIRLINES DECIDED TO CHANGE THE CARRIER'S FLIGHT PATH THOUGH STILL HEMMED IN BY A DECAYING COMMUNIST SYSTEM THE STRUGGLING ENTERPRISE EMBARKED ON A NEW COURSE OF MODERNIZATION TODAY AFTER A MASSIVE OVERHAUL LOT HAS ONE OF THE WORLD'S YOUNGEST BOEING FLEETS A NEW AIRPORT WITH MODERN CARGOSORTING AND CATERING FACILITIES AND SERVICE THAT IS SECOND TO NONE IN EASTERN EUROPE BEHIND LOT'S NEWBORN REFINEMENT HOWEVER SITS AN ORGANIZATION STRUGGLING TO RESHAPE ITSELF PEOPLE FAMILIAR WITH THE CARRIER SAID THAT ALMOST EVERY FACET FROM THE SPEED OF MODERNIZATION TO WHICH PLANES TO BUY HAS ENTAILED PROTRACTED AND OFTEN ANTAGONISTIC WRANGLING BOTH WITHIN LOT AND BETWEEN LOT AND ITS GOVERNMENT SUPERVISORS NEW PLANES AND IMPROVED SERVICE MOREOVER ARE ONLY THE BEGINNING TODAY THE PRODUCT IS NOT SO BAD AGREES BOGUSLAW LIBERADZKI LOT'S SUPERVISORY BOARD CHAIRMAN AND POLAND'S VICE MINISTER OF TRANSPORTATION BUT TO THRIVE MR LIBERADZKI SAYS LOT HAS TO SHED ALL VESTIGES OF COMMUNISTERA MANAGEMENT AND BE PRIVATIZED ACCORDING TO PEOPLE WHO ASKED NOT TO BE IDENTIFIED NEARLY ALL PROGRESS AT LOT SO FAR CAN BE CREDITED TO A HANDFUL OF FANATICS YOUNGER SECONDTIER MANAGERS WHO HAVE HAD TO FIGHT THE SYSTEM MOREOVER SOME PEOPLE CONTEND THAT LOT'S TOP MANAGERS WHO ARE TENURED LACK THE EXPERIENCE TO RUN A COMPETITIVE INTERNATIONAL AIRLINE PRIVATIZATION LOT'S CRITICS SAY IS SEEN AS A THREAT BY TOP MANAGEMENT AND MIDDLE MANAGERS WHO WOULD LOSE THEIR JOBS FORCEFUL UNIONS WHO WOULD LOSE INFLUENCE AND GOVERNMENT OFFICIALS WHO WOULD LOSE POWER AND PERQUISITES STILL DOMINATED BY MANAGERS AND EMPLOYEES FROM THE OLD SYSTEM LOT IS STRUGGLING WITH HOW RADICALLY IT SHOULD RESTRUCTURE ITSELF BUT DISCORD WITHIN LOT REFLECTS A LARGER DEBATE IN POLAND A DEBATE PLAYED OUT IN RECENT PARLIAMENTARY ELECTIONS IN WHICH LEFTIST FORCES SCORED VICTORIES DUE TO VOTER DISCONTENT OVER THE SWIFT AND PAINFUL PACE OF REFORM IN A TABLEAU REPEATED THROUGHOUT THE FORMER COMMUNIST WORLD LOT MAY HAVE UNDERGONE A QUICK PHYSICAL TRANSFORMATION BUT WHERE JOBS INFLUENCE AND POLITICS ARE CONCERNED ORGANIZATIONS AND PSYCHOLOGY ARE PROVING SLOW TO FOLLOW FEAR OF CHANGE IS COMMON TO EVERYBODY AT LOT ADMITS VICE PRESIDENT ZBIGNIEW KISZCZAK AND SENIOR MANAGEMENT MUST LEARN FAST BUT MR KISZCZAK REBUTS CRITICS OF THE AIRLINE'S SLOW RESTRUCTURING THIS IS NOT A TIME FOR REVOLUTION AT LOT HE SAYS CITING THE CARRIER'S TREMENDOUS PROBLEMS WITH BOTH POLAND'S CHANGING ECONOMY AND THE TROUBLED GLOBAL AIRLINE INDUSTRY AT SUCH A DELICATE MOMENT THE CURE COULD KILL HE CONTENDS LOT'S DEFENDERS SAY MAJOR MODIFICATIONS ARE UNDER WAY DESPITE THE OBSTACLES THE WORK FORCE HAS SHRUNK TO ABOUT 4500 FROM 7290 THREE YEARS AGO AT THE END OF 1992 LOT WAS CONVERTED FROM A GOVERNMENT BODY INTO A JOINT STOCK COMPANY HELD IN TRUST BY POLAND'S STATE TREASURY A FIRST STEP TOWARD PRIVATIZATION IN APRIL LOT APPOINTED BANKERS TRUST NEW YORK CORP AS ITS ADVISER ON PRIVATIZATION LOT PRESIDENT JAN LITWINSKI POINTS TO NUMEROUS INTERNATIONAL CONSULTING AND TRAINING PROJECTS AIMED AT IMPROVING STAFF SKILLS MANAGEMENT SYSTEMS AND COMMERCIAL OPERATIONS LUFTHANSA AG'S CONSULTING ARM WILL CONDUCT A COURSE FOR A DOZEN TOP MANAGERS WHILE DELOITTE & TOUCHE AND UNISYS CORP ARE WORKING TO DEVELOP INTERNAL MANAGEMENT SYSTEMS AND INFRASTRUCTURE LOT ALSO IS TALKING WITH MAJOR FOREIGN CARRIERS INCLUDING DELTA AIR LINES AND AMERICAN AIRLINES A UNIT OF AMR CORP ABOUT AN ALLIANCE COVERING ROUTE AND PASSENGER SHARING SUCH A MOVE COULD PAVE THE WAY TOWARD FOREIGN INVESTMENT AND PRIVATIZATION WE HAVE PROBLEMS BUT WE'RE GETTING A HANDLE ON THEM ASSERTS A HIGHLEVEL LOT MANAGER LESS OPTIMISTIC OBSERVERS HOWEVER BELIEVE THAT ONLY A MINORITY OF LOT MANAGERS AND TRANSPORT MINISTRY OFFICIALS EAGERLY SEEK PRIVATIZATION POLISH LAW STIPULATES THAT THE GOVERNMENT WILL RETAIN 51 OF LOT ONCE IT IS PRIVATIZED SO THESE REFORMERS SEE LITTLE DANGER OF POLAND LOSING CONTROL OVER ITS FLAG CARRIER ALTHOUGH BANKERS TRUST WAS APPOINTED AS THE GOVERNMENT'S ADVISER ON LOT IN APRIL A CONTRACT HAS YET TO BE SIGNED MR LIBERADZKI SAYS THIS IS BECAUSE POLAND'S MINISTRY OF PRIVATIZATION MUST APPROVE THE CONTRACT ALONG WITH THE MINISTRY OF TRANSPORT CRITICS ACKNOWLEDGE THAT POLAND'S POLITICAL PROBLEMS COMPLICATE MATTERS FOR LOT BUT THEY BELIEVE THAT IF MINISTRY OFFICIALS COULD AGREE ON WHAT THEY WANTED HITCHES COULD QUICKLY BE OVERCOME AT THE SAME TIME PEOPLE FAMILIAR WITH LOT SAY A NUMBER OF POLITICIANS AND GOVERNMENT OFFICIALS NOT DIRECTLY INVOLVED WITH THE AIRLINE HAVE LITTLE INTEREST IN SEEING IT PRIVATIZED THE DAYS WHEN INDIVIDUALS REQUISITIONED AIRPLANES MAY BE LONG GONE BUT GOVERNMENT OFFICIALS CAN STILL OBTAIN FREE TICKETS AND SUCH PERKS WOULD DISAPPEAR WITH PRIVATIZATION MR LIBERADZKI AND MR KISZCZAK CALL THE ASSERTIONS ABSOLUTELY UNTRUE BUT OTHERS SAY THAT WHEN GOVERNMENT OFFICIALS CALL FOR TICKETS OR SERVICES LOT JUMPS UNDER COMMUNISM LOT ENJOYED AN UNTENABLY COMFORTABLE SITUATION EQUIPMENT STAFF AND FUEL COST THE CARRIER ALMOST NOTHING THANKS TO REGULATED PRICES SUBSIDIES AND GIFTS FROM THE SOVIET UNION WITH ITS CAPTIVE MARKET LOT IGNORED SELLING MARKETING AND CUSTOMER SERVICE AT THE SAME TIME GIVEN LOT'S INTERNATIONAL PRESENCE AND HIGH PROFILE IN POLAND MANAGEMENT WAS HANDLED BY TRUSTED PEOPLE IN MR LIBERADZKI'S WORDS ANYONE WHO'S BEEN WITH THE AIRLINE MORE THAN 10 OR 15 YEARS NOTES ANOTHER OBSERVER THEY'RE OLD COMRADES' LOT MANAGERS WERE 100 FAITHFUL TO THE OLD SYSTEM TODAY MANY OF THEM REMAIN A MANAGEMENT SHAKEUP LAST NOVEMBER CREATED A NEW EXECUTIVE BOARD OF MR LITWINSKI MR KISZCZAK AND VICE PRESIDENT MAREK KRUPINSKI FROM WITHIN LOT RANKS SUPPORTERS OF THE NEW BOARD ASSERT THAT THE TOP MANAGERS HOLD A VISION OF WHAT LOT NEEDS THE EXECUTIVE BOARD HAS A GOOD UNDERSTANDING OF AIRLINES SAYS ONE OBSERVER FAMILIAR WITH THE SITUATION HE SAYS THE BOARD IS PUSHING LOT TO INCREASE PROFITS REFORM ITS STRUCTURE AND BUILD INTERNAL SKILLS BUT OTHERS COUNTER THAT WHILE THE EXECUTIVE BOARD MAY UNDERSTAND INCREMENTAL CHANGES AND HOW TO KEEP LOT ALOFT THEY WOULDN'T QUALIFY AS SENIOR EXECUTIVES AT A WESTERN AIRLINE IF LOT WERE PRIVATIZED THESE CRITICS CONTEND HIGH EXECUTIVES WOULD LIKELY LOSE THEIR JOBS VICE PRESIDENT KISZCZAK HOLDS A DIFFERENT VIEW WE ARE AWARE OF THE FACT THAT WE HAVE NO EXPERIENCE IN RUNNING LARGE AIRLINES HE CONCEDES POINTING OUT THAT THERE ARE NOT SO MANY PEOPLE IN POLAND WHO ARE USED TO RUNNING BIG BUSINESSES MR KISZCZAK WHO SPENT 14 YEARS ABROAD WITH LOT SAYS WE ARE AWARE OF WHAT SHOULD BE DONE BUT HE SAYS MANAGEMENT MUST SERVE THIS MEDICINE IN DOSES CHAIRMAN LIBERADZKI DEFENDS LOT MANAGEMENT REFERRING TO THE TOP THREE AS LOT'S MOST TALENTED STILL MR LIBERADZKI CONCEDES THAT BECAUSE THE EXECUTIVES GREW UP WITHIN LOT THEY HOLD ALLEGIANCES TO PEOPLE WHO WOULD BE DISMISSED IN A MORE COMPETITIVE ATMOSPHERE REAL RESISTANCE TO CHANGE HE CONCLUDES COMES NOT FROM THE TOP BUT FROM THE MIDDLE RANKS OBSERVERS DISAGREE ON WHAT THE COUNTERVAILING FORCES WILL PRODUCE AT LOT MANY SAY THAT CHANGE SO FAR HAS BEEN IN SPITE OF ITSELF AS ONE CRITIC PUTS IT BUT ANOTHER MORE OPTIMISTIC OBSERVER SAYS CHANGE AT LOT SHOWS THAT A SMALL HANDFULL OF PEOPLE CAN PULL IT OFF AND BEAT THE ODDS 9310110043 931011 POLITICS & POLICY US HAS ALL BUT SPLIT WITH UN POLICY ON SOMALIA AS IT BEGINS TO DISENGAGE BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BEGINNING THE PROCESS OF DISENGAGING FROM SOMALIA THE US HAS ALL BUT SPLIT WITH UNITED NATIONS POLICY IN THE EAST AFRICAN NATION APPARENTLY PURSUING A SEPARATE PEACE WITH WARLORD MOHAMED FARRAH AIDID THE US GOVERNMENT HASN'T EXPLICITLY OFFERED OR ACCEPTED A CEASEFIRE BUT FROM PRESIDENT CLINTON DOWN OFFICIALS WELCOMED THE UNILATERAL DECLARATION BY GEN AIDID WHOSE FORCES INFLICTED NEARLY 100 CASUALTIES ON US ARMY RANGERS JUST A WEEK AGO THAT'S FINE MR CLINTON SAID SATURDAY HE OUGHT TO STOP THE VIOLENCE AND WHILE THE PRESIDENT SAID DIRECT NEGOTIATIONS WITH GEN AIDID WEREN'T UNDER WAY DEFENSE SECRETARY LES ASPIN SAID YESTERDAY THAT HE WOULDN'T RULE THEM OUT IN INTERVIEWS ON TELEVISION TALK SHOWS YESTERDAY SEVERAL US OFFICIALS SIDESTEPPED QUESTIONS ABOUT WHETHER THE US IS STILL TRYING TO CAPTURE GEN AIDID A UN RESOLUTION PASSED IN JUNE CALLED FOR THE ARREST OF THOSE RESPONSIBLE FOR THE SLAYING OF 24 PAKISTANI PEACEKEEPERS A MOVE WIDELY UNDERSTOOD TARGETING GEN AIDID BUT IN AN APPEARANCE ON NBCTV'S MEET THE PRESS SECRETARY OF STATE WARREN CHRISTOPHER SAID THE FOCUS HAS SHIFTED THE FOCUS IS NOW ON TRYING TO GET A POLITICAL SETTLEMENT IN THE AREA BY CONTRAST JONATHAN HOWE THE UN ENVOY TO SOMALIA INSISTED THERE IS STILL A UN BOUNTY ON GEN AIDID'S HEAD AND THAT UN FORCES ARE STILL ACTIVELY PURSUING THE RENEGADE WARLORD MR HOWE ALSO SAID THAT US FORCES HAVE BEEN IN POSITION TO KILL GEN AIDID BUT HAVEN'T DONE SO WE'VE HAD MANY OPPORTUNITIES TO ELIMINATE HIM HE SAID ON ABCTV'S THIS WEEK WITH DAVID BRINKLEY THAT'S NOT OUR JOB IRONICALLY UNTIL RECENTLY UN POLICY IN SOMALIA WAS DRIVEN BY THE US WHICH VOTED FOR THE UN RESOLUTIONS THAT SHAPED THE MISSION IN SOMALIA INDEED MR HOWE WHO SOME AMERICAN OFFICIALS PRIVATELY CRITICIZE AS BECOMING OBSESSED WITH THE CAPTURE OF GEN AIDID IS HIMSELF A RETIRED US ADMIRAL WHO SERVED ON PRESIDENT BUSH'S NATIONAL SECURITY COUNCIL BUT OVER THE WEEKEND THE US HAS ADOPTED A NEW THEME UNDER WHICH SOMALIA ISN'T A PROBLEM FOR THE US OR EVEN FOR THE UN RATHER THE NEW US POLICY IS TO ENCOURAGE AN AFRICAN SOLUTION TO AN AFRICAN PROBLEM A PHRASE USED BY THE PRESIDENT AND ECHOED BY OTHER TOP OFFICIALS THE PROBLEM FACING THE ADMINISTRATION IS THAT MANY IN CONGRESS WANT TO REALIZE THAT THEME IMMEDIATELY RATHER THAN NEXT SPRING WHILE THERE WERE RUMORS IN MOGADISHU LATE LAST WEEK THAT US FORCES MIGHT RENEW THEIR ATTACKS ON GEN AIDID THE ADMINISTRATION KNOWS THAT CONGRESS IS LIKELY TO PULL THE PLUG ON THE SOMALIA MISSION IF THE US MILITARY SUFFERS ANY ADDITIONAL CASUALTIES IN PURSUING GEN AIDID A GOAL IT HAS EFFECTIVELY RENOUNCED INDEED EVEN WITHOUT FURTHER CASUALTIES THERE IS A CHANCE THAT THE SENATE ANGERED BY THE ADMINISTRATION'S STILLMURKY SOMALIA POLICY WOULD VOTE FOR A QUICK WITHDRAWAL WHEN IT CONSIDERS THE DEFENSE BUDGET THIS WEEK UNDER THE PLAN MR CLINTON ANNOUNCED THURSDAY THE US WOULD QUADRUPLE ITS MILITARY PRESENCE IN THE AREA BUT PULL OUT BY MARCH 31 THE HITCH IN SELLING THE PLAN TO CONGRESS IS THAT THE ADMINISTRATION IS UNABLE TO PROMISE THAT THE SITUATION WOULD BE MUCH BETTER BY THEN IN THE MEANTIME US FORCES IN SOMALIA ALMOST CERTAINLY WOULD SUFFER ADDITIONAL CASUALTIES WITH STABILITY IN MOGADISHU LOOKING REMOTE MANY IN CONGRESS LED BY SEN ROBERT BYRD D WVA ARGUE THAT IT WOULD BE BETTER TO LEAVE SOONER RATHER THAN LATER GEN AIDID'S CEASEFIRE MAY ONLY MAKE MATTERS WORSE PREDICTED SAID S SAMATAR A SOMALI WHO IS A PROFESSOR OF AFRICAN HISTORY AT RUTGERS UNIVERSITY HE CONFRONTED THE FORCES OF THE INTERNATIONAL COMMUNITY AND IN EFFECT HE WON MR SAMATAR SAID HE SPEAKS FROM A POSITION OF MILITARY AND POLITICAL STRENGTH HAVING SURVIVED 10 MONTHS OF AN ADVERSARIAL US MILITARY PRESENCE HE ADDED GEN AIDID WOULD FACE ONLY SIX MORE THERE IS A GENERAL AGREEMENT THAT THE UN EFFORT IN SOMALIA WOULD COLLAPSE IF THE US LEFT NOW BUT LITTLE EVIDENCE THAT THE SITUATION WOULD BE DIFFERENT BY SPRING CURRENTLY THERE ARE ALMOST AS MANY TROOPS IN THE UN FORCE IN MOGADISHU AS THE US HAD THERE IN JANUARY WHEN THE CITY WAS RELATIVELY CALM BUT OVER THE PAST NINE MONTHS THE UN HAS LOST CONTROL OF THE CITY GIVING UP NIGHT PATROLS AND THE INTELLIGENCE GLEANED BY THOSE PATROLS ABOUT MILITIA MOVEMENTS THE UN MILITARY MISSION TO SOMALIA BEGAN IN DECEMBER 1992 AS A HUMANITARIAN EFFORT TO CLEAR THE WAY FOR FOOD DELIVERIES BLOCKED BY WARRING FACTIONS THE US TURNED OVER COMMAND OF THE OPERATION TO THE UN IN MAY ONE MONTH LATER THE ATTACK ON THE PAKISTANI PEACEKEEPERS OCCURRED CHANGING THE NATURE OF THE UN EFFORT 9310110042 931011 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ANCHOR BANCORP INC 100 MILLION OF 89375 10YEAR SENIOR NOTES PRICED AT 1035 WITH 71 MILLION OF THE NOTES HELD BY THE FEDERAL DEPOSIT INSURANCE CORP AS MANAGER OF THE FSLIC RESOLUTION FUND AND 29 MILLION OF THE NOTES SOLD BY ANCHOR ON ITS BEHALF ACCORDING TO THE COMPANY THE OFFERING WAS UNDERWRITTEN AND MANAGED BY SMITH BARNEY SHEARSON INC BELLSOUTH CORP 750 MILLION OF DEBENTURES IN TWO PARTS PRICED BY UNDERWRITERS LED BY MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 350 MILLION OF DEBENTURES DUE JAN 15 2009 WAS PRICED AS 5875S AT 99839 TO YIELD 589 THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 400 MILLION OF DEBENTURES DUE OCT 15 2033 WAS PRICED AS 675S AT 985 TO YIELD 686 THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 78 BASIS POINTS ABOVE TREASURYS CHASE MANHATTAN BANK 100 MILLION OF SUBORDINATED NOTES DUE OCT 15 2008 WAS PRICED AS 6125S AT 98602 TO YIELD 627 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 102 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CHASE SECURITIES INC CHASE MANHATTAN BANK IS A CHASE MANHATTAN CORP UNIT NORWEST FINANCIAL INC 150 MILLION OF NOTES DUE APRIL 15 2000 PRICED AS 5125S AT 994 TO YIELD 5235 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 42 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NORWEST IS A NORWEST CORP UNIT PARACELSUS HEALTHCARE CORP 75 MILLION OF SENIOR SUBORDINATED NOTES DUE OCT 15 2003 PRICED AT PAR TO YIELD 9875 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB1 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES INC PRIMARK CORP 100 MILLION OF SENIOR NOTES DUE OCT 15 2000 PRICED AS 875S AT 98975 TO YIELD 895 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FOUR YEARS WERE RATED BA2 BY MOODY'S AND DOUBLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY PAINEWEBBER INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1993222 IS BACKED BY THE AGENCY'S PRINCIPALONLY STRIPS TRUST 237 WHICH IN TURN IS BACKED BY 30YEAR 8 MORTGAGE SECURITIES BANCO DE GALICIA Y BUENOS AIRES SA ARGENTINA 50 MILLION OF CERTIFICATES OF DEPOSIT MARKETED VIA ING BANK GRAND CAYMAN BRANCH AS 7585S PARTICIPATION CERTIFICATES IN CD DUE SEPT 27 1996 VIA INTERNATIONALE NEDERLANDEN BANK NV ISSUE AND REOFFER PRICE 998905 CERTIFICATES YIELD 7625 FEES UNDISCLOSED INTEREST PAYABLE SEMIANNUALLY BANQUE PARIBAS FRANCE FOUR BILLION FRENCH FRANCS OF 6 EUROBONDS DUE NOV 9 1998 AT ISSUE PRICE 100905 FOR OWN ACCOUNT REOFFERED AT 9933 TO YIELD 616 A SPREAD OF 52 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY FEES 1875 COUNCIL OF EUROPE RESETTLEMENT FUND SUPRANATIONAL 100 MILLION MARKS OF 6 EUROBONDS DUE NOV 25 2003 AT ISSUE PRICE 1019 VIA TRINKAUS & BURKHARDT KGAA BONDS YIELD 605 AT 9965 COMANAGERS' BREAKEVEN PRICE BONDHOLDER HAS RIGHT TO CONVERT COUPON TO FLOATING RATE ANNUALLY FROM NOV 25 1996 AT CONVERSION PRICE PAR TO 10 BASIS POINTS BELOW SIXMONTH LONDON INTERANK OFFERED RATE FOR MARKS IF COUPON CONVERTED BONDS MATURE NOV 25 2011 FEES 2375 POINTS LESS 0125 FOR LEAD MANAGER SWEDEN SOVEREIGN 300 BILLION LIRE OF 8 EUROBONDS DUE OCT 21 1996 AT ISSUE PRICE 10153 VIA BANCA EUROMOBILIARE SPA BONDS YIELD 794 AT 100155 COMANAGERS' BREAKEVEN PRICE FEES 1375 9310110041 931011 CARGO TERMINAL IS UNVEILED DETROIT GRAND TRUNK/CANADIAN NATIONAL NORTH AMERICA AND ASHLAND CHEMICAL CO A UNIT OF ASHLAND OIL CO UNVEILED A 1 MILLION CARGOFLO TERMINAL IN WARREN MICH WHICH THE COMPANIES WILL JOINTLY OPERATE IN A STATEMENT GRAND TRUNK SAID THE TERMINAL IS DESIGNED TO HANDLE NONFOOD PRODUCTS AND WILL INITIALLY FOCUS ON PLASTICS THE COMPANY EXPECTS THE TERMINAL TO HANDLE 600 TO 800 CARS A YEAR GENERATING NEARLY 1 MILLION IN ANNUAL REVENUE FOR THE COMPANIES GRAND TRUNK IS THE US RAILROAD UNIT OF CANADIAN NATIONAL RAILWAY CO 9310110040 931011 INTERNATIONAL MEXICAN CONSUMER PRICES RISE MEXICO CITY MEXICO'S CONSUMER PRICES ROSE 07 IN SEPTEMBER FROM AUGUST AMOUNTING TO AN ANNUAL RATE OF 948 THE BANK OF MEXICO SAID THE CENTRAL BANK ALSO SAID CONSUMER PRICES ROSE 629 THROUGH THE FIRST NINE MONTHS OF THE YEAR MEXICO'S INFLATION RATE WAS 119 IN 1992 9310110039 931011 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR AT LEAST SOME OF THE ECONOMIC STATISTICS FOR SEPTEMBER DUE THIS WEEK ARE EXPECTED TO CONTAIN SOME GOOD NEWS ECONOMISTS SAID GOVERNMENT REPORTS PROBABLY WILL SHOW THAT INFLATION REMAINED UNDER CONTROL IN SEPTEMBER WHILE RETAIL SALES CONTINUED TO RISE WE'RE LOOKING AT A THIRD QUARTER THAT WILL BE MUCH BETTER THAN THE FIRST HALF OF THE YEAR DURING WHICH GROWTH WAS SLOWER THAN MANY ANALYSTS ANTICIPATED SAID LYNN REASER ECONOMIST AT FIRST INTERSTATE BANCORP IN LOS ANGELES MS REASER ESTIMATES THAT THE CONSUMER PRICE INDEX ROSE 02 IN SEPTEMBER WHILE THE PRODUCER PRICE INDEX CLIMBED 03 RETAIL SALES MEANWHILE LIKELY INCREASED 04 IN SEPTEMBER HELPED BY A RISE IN APPAREL SALES DUE TO COOL WEATHER SHE SAID THAT WOULD MARK THE SIXTH CONSECUTIVE MONTHLY RISE IN RETAIL SALES THE LONGEST STRING OF INCREASES SINCE THE 199091 RECESSION WITHIN THE CONSUMER PRICE INDEX LOWER ENERGY PRICES PROBABLY OFFSET HIGHER FOOD PRICES MS REASER SAID AFTER AN UPWARD BLIP THIS SPRING CONSUMER PRICES HAVE LEVELED OFF AND ARE RUNNING AT A 28 PACE FOR THE PAST 12 MONTHS INFLATION IS STILL UNDER CONTROL AND IS LIKELY TO STAY THAT WAY FOR AT LEAST THE NEXT YEAR SHE SAID THE ECONOMY JUST DOESN'T APPEAR STRONG ENOUGH TO SUPPORT PRICE INCREASES 9310110038 931011 ANALYSTS EXPECT EARNINGS BOUNCE FOR AD AGENCIES COSTCUTTING SLIGHT UPTICK IN CLIENT SPENDING SEEN SPARKING THIRD QUARTER BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL SPOTTING A LIGHT AT THE END OF A LONG TUNNEL MEDIA INDUSTRY ANALYSTS ARE PREDICTING IMPROVED THIRDQUARTER EARNINGS FOR ADVERTISING AGENCIES THE BOTTOM LINES OF THE BIG AGENCY HOLDING COMPANIES ARE STARTING TO BENEFIT APPRECIABLY FROM SEVERAL YEARS OF COST CUTTING THAT COMBINED WITH A SLIGHT REBOUND IN CLIENT SPENDING HAS RAISED HOPES AMONG EXECUTIVES THAT THE INDUSTRY'S DOG DAYS MAY FINALLY BE BEHIND THEM THE INDUSTRY IS GOING TO HAVE A BETTER QUARTER SAYS ALAN GOTTESMAN AN ANALYST AT PAINEWEBBER MOST BIG COMPANIES HAVE USED THIS MALAISE AS A WAY TO GET EXPENSES DOWN SOME LESSONS WILL STAY LEARNED FOR THE NEXT COUPLE OF YEARS BUT SPENDING INCREASES ARE PATCHY CAUTIONS ALISON FOLINO AN ANALYST WITH SMITH BARNEY SHEARSON IT'S A CLIENTBYCLIENT TYPE OF THING MAKERS OF BRANDED CONSUMER GOODS HAD BEEN EXPECTED TO INCREASE ADVERTISING AS A WAY OF FENDING OFF COMPETITION FROM LOWERPRICED PRIVATELABEL GOODS BUT THAT REBOUND HASN'T MATERIALIZED YET STILL ANALYSTS SAY A NUMBER OF FACTORS INDICATE THAT CLIENTS IN THE US ARE LOOSENING UP THEIR PURSE STRINGS MEDIA PRICES ARE STAYING FIRM THEY SAY READERS DIGEST CONSIDERED AN INDICATOR OF PRINT MEDIA PRICES RECENTLY CUT ITS RATE BASE OF GUARANTEED SUBSCRIBERS BUT HELD PRICES STEADY AND SOME MARKETERS BENEFITING FROM A PRICE WAR AMONG THE COMPANIES THAT PRODUCE COUPON PROMOTIONS ARE PUTTING MONEY EARMARKED FOR PROMOTIONS AND DISCOUNTS BACK INTO TRADITIONAL ADVERTISING INTERPUBLIC GROUP OF COS WHICH OWNS THE ADVERTISING NETWORKS MCCANNERICKSON LINTAS AND LOWE GROUP IS EXPECTED TO REPORT THIRDQUARTER EARNINGS OF 19 CENTS OR 20 CENTS A SHARE ANALYSTS SAY UP 12 TO 18 FROM A YEAR EARLIER JAMES DOUGHERTY ANALYST AT DEAN WITTER SEES QUARTERLY REVENUE OF ABOUT 453 MILLION UP 4 FROM THE THIRD QUARTER OF 1992 THERE IS A LITTLE UPTICK IN SPENDING HE SAID IT'S GOING TO BE A GOOD QUARTER FOR INTERPUBLIC I HAVEN'T SAID THAT IN A WHILE FOR INTERNATIONAL ADVERTISING NETWORKS WESTERN EUROPE MAY PRESENT A DARK SPOT ANALYSTS SAY EUROPE REMAINS DIFFICULT I'M NOT SENSING A TRUE IMPROVEMENT IN THE TONE OF BUSINESS SAYS MS FOLINO IN ADDITION UNFAVORABLE CURRENCY RATES COULD TAKE A TOLL ESPECIALLY SINCE MOST BIG US HOLDING COMPANIES DERIVE AT LEAST HALF OF THEIR REVENUE OUTSIDE THE US UNCERTAIN ABOUT THE EUROPEAN PICTURE ANALYSTS DISAGREE IN THEIR THIRDQUARTER OUTLOOK FOR OMNICOM GROUP WHICH OWNS THE INTERNATIONAL NETWORKS BBDO AND DDB NEEDHAM AND ADDED A THIRD TBWA ADVERTISING IN MAY PAINEWEBBER'S MR GOTTESMAN PREDICTS EARNINGS OF 40 CENTS A SHARE IN THE QUARTER AN 8 INCREASE FROM 37 CENTS A SHARE REPORTED IN THE 1992 QUARTER BUT MR DOUGHERTY AND MS FOLINO SEE EARNINGS OF 44 CENTS TO 46 CENTS A SHARE A 20 TO 25 INCREASE MR DOUGHERTY PREDICTS QUARTERLY REVENUE OF 350 MILLION UP 7 FROM 328 MILLION LAST YEAR FOOTE CONE & BELDING COMMUNICATIONS IS EXPECTED TO REPORT PERSHARE EARNINGS OF 27 CENTS TO 30 CENTS COMPARED WITH 25 CENTS IN THE LAST YEAR'S THIRD QUARTER MR DOUGHERTY EXPECTS REVENUE OF 95 MILLION 7 HIGHER THAN A YEAR EARLIER 9310110037 931011 REVIEW & OUTLOOK EDITORIAL ASIDES CHRISTMAS AT OPRYLAND OPRYLAND USA THE THEME PARK NEAR THE GRAND OLE OPRY HOUSE PLANS A BIG CHRISTMAS DISPLAY THIS YEAR INCLUDING A NATIVITY SCENE WITH 75 PIECES THIS NO DOUBT WILL CAUSE TWITCHING AT THE ACLU WHICH OFTEN CELEBRATES THE HOLIDAYS BY LITIGATING SUCH SCENES OFF PUBLIC SQUARES BUT OPRYLAND'S NATIVITY IS PRIVATE AND PROBABLY SAFE FROM THE CRECHE CLEANSERS 9310110036 931011 HOUSTON PORT FIRE LEAVES TWO DEAD SHIPPING TRAFFIC IS ALL BUT STOPPED BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON AN EXPLOSION AND FIRE ABOARD AN EMPTY 660FOOT CHEMICAL TANKER ON SATURDAY NIGHT HAS LEFT AT LEAST TWO CREW MEMBERS DEAD AND THE PORT PARTIALLY CLOSED EVEN THOUGH THE MYSTERIOUS BLAZE APPEARED TO BE OUT BY YESTERDAY AFTERNOON FIREFIGHTERS CONTINUED TO SPRAY WATER ON THE GROUNDED SHIP THE OMI CHARGER OF US REGISTRY TO AVOID WHAT THEY TERMED A REFLASH THE EXPLOSION ALL BUT STOPPED THE NORMALLY HEAVY TRAFFIC OF DEEPWATERDRAFT SHIPS IN A 40MILE CHANNEL THAT CONNECTS HOUSTON AND THE GULF OF MEXICO WHEN THE EXPLOSION OCCURRED THE SHIP WAS LOCATED ABOUT ONE MILE OFF GALVESTON IN THE GULF OF MEXICO NEAR THE MOUTH OF THE CHANNEL TO HOUSTON HOUSTON IS THE NATION'S THIRDBUSIEST PORT BEHIND NEW YORK AND NEW ORLEANS BUT COAST GUARD OFFICIALS DECIDED TO LIMIT TRAFFIC YESTERDAY TO A MAXIMUM OF 10 BIG SHIPSTANKERS AND FREIGHTERS UNTIL THEY'RE SURE THE PASSAGE OF SUCH VESSELS WON'T SINK THE OMI CHARGER OR ENDANGER THE VESSELS THEMSELVES ALTHOUGH THE DAMAGED SHIP IS AT ANCHOR AND THUS ISN'T DIRECTLY IN SHIPPING LANES OFFICIALS CONSIDER ITS LOCATION TOO CLOSE TO WHERE SHIPS MUST PASS TO ALLOW MANY TO DO SO SO THEY DECIDED TO EXPERIMENT BY LETTING THE 10 OUTBOUND SHIPS THROUGH YESTERDAY INBOUND SHIPPING WAS TEMPORARILY HALTED BUT IT'S EXPECTED TO BEGIN AGAIN EARLY THIS WEEK ACCORDING TO PEOPLE CLOSE TO THE SITUATION COAST GUARD OFFICIALS SAID THEY STILL AREN'T SURE WHAT CAUSED THE EXPLOSION ALTHOUGH THEIR SUSPICIONS CENTER ON MAINTENANCE WELDING THAT WAS UNDER WAY WHEN THE FIRST OF TWO BLASTS OCCURRED AT 8 PM ON SATURDAY ONE CREWMAN WAS DEAD ON ARRIVAL AT A HOUSTON HOSPITAL SOON AFTER THE BLAZE AND ONE OTHER IS MISSING DIVERS FOUND THE BODY OF ONE WELDER YESTERDAY A COAST GUARD OFFICIAL SAID ANOTHER REASON FOR HALTING CHANNEL TRAFFIC IS THAT OFFICIALS AREN'T SURE WHAT WAS BURNING ABOARD THE DAMAGED VESSEL FURTHER THEY WANTED TO ASSESS ANY FUEL LEAKAGE THE SHIP CARRIED 8700 BARRELS OF FUEL A MARINE OFFICIAL SAID ON SATURDAY NIGHT THE SECOND EXPLOSION ROCKED THE OMI CHARGER ABOUT AN HOUR AFTER THE FIRST BESIDES THE TWO DEAD CREWMAN AND ONE STILL MISSING ANOTHER 24 WERE TREATED AT ST MARY'S HOSPITAL IN GALVESTON ALL WHO WEREN'T RELEASED FROM MEDICAL CARE WERE REPORTED IN AT LEAST FAIR CONDITION THE HUGE VESSEL LISTING BADLY REMAINED AT ANCHOR YESTERDAY WITH APPARENT CONSIDERABLE HULL DAMAGE BUT STILL AFLOAT IT'S STERN WAS PARTLY UNDER WATER AND MUCH OF THE VESSEL'S BOTTOM RESTED ON THE GULF'S FLOOR BUT THE WATER IS ONLY 32 FEET DEEP IN THAT VICINITY OFFICIALS SAID THEY HOPE TO KEEP THE OMI CHARGER AFLOAT TO REPAIR IT OR TOW IT TO ANOTHER LOCATION WE DEFINITELY DON'T WANT IT SUNK THERE A COAST GUARD PETTY OFFICER SAID ONE THING HOUSTON'S BELEAGUERED PORT DOESN'T NEED IS MAJOR OBSTACLES RIGHT NOW OFFICIALS RECENTLY ESTIMATED THE PORT ALREADY NEEDS ABOUT 500 MILLION OF DEEPENING AND OTHER MAINTENANCE WORK TO CONTINUE ITS CURRENT VOLUME OF OPERATIONS 9310110034 931011 TECHNOLOGY BRIEF APPLE COMPUTER INC DISTRIBUTION OF SOFTWARE ON CDROM DISKS IS SET APPLE COMPUTER INC CUPERTINO CALIF SAID IT WILL BEGIN DISTRIBUTING SOFTWARE ON COMPACT DISKS CALLED CDROM APPLE'S NEWLY FORMED SOFTWARE DISPATCH UNIT WILL DISTRIBUTE DISKS THAT ALLOW CUSTOMERS TO TRY OUT NEW SOFTWARE PROGRAMS ON THEIR OWN COMPUTERS AND PLACE ORDERS BY PHONE TO BUY THEM AFTER GIVING A CREDIT CARD NUMBER USERS WILL RECEIVE A CODE THAT GIVES THEM PERMANENT USE OF PROGRAMS CDROM WHICH REQUIRES A SPECIAL DRIVE TO PLAY HAS THE CAPACITY TO STORE MANY PROGRAMS ON A SINGLE DISK AND SAVE ON SOFTWARE DUPLICATION COST ANALYSTS SAY THIS FORM OF SOFTWARE DISTRIBUTION COULD GIVE SERIOUS COMPETITION TO RETAIL STORES AND MAILORDER HOUSES 9310110033 931011 INTERNATIONAL BRAZIL'S PRICES RISE 37 RIO DE JANEIRO BRAZILIAN PRICES ROSE 37 IN SEPTEMBER COMPARED WITH 335 IN AUGUST A PRIVATE ECONOMICS INSTITUTE SAID THE GENERAL PRICE INDEX WHICH MEASURES WHOLESALE AND CONSUMER PRICES AS WELL AS CONTRUCTION COSTS IS CALCULATED BY THE GETULIO VARGAS FOUNDATION WHOLESALE PRICES IN SEPTEMBER ROSE 373 DRIVEN BY A 42 JUMP IN CONSUMER GOODS AND A 466 RISE IN FARM PRICES CONSUMER PRICES ROSE 355 PRACTICALLY THE SAME AS IN AUGUST CONSTRUCTION COSTS ROSE 40 IN THE FIRST NINE MONTHS OF 1993 THE INDEX ROSE 10139 THE INDEX MEASURED PRICES IN RIO AND SAO PAULO FOR FAMILIES EARNING UP TO THE EQUIVALENT OF 640 A MONTH MOST BRAZILIANS EARN LESS THAN 160 A MONTH 9310110032 931011 BERKELEY SYSTEMS GAINS IN LEGAL FIGHT WITH RIVAL BERKELEY CALIF BERKELEY SYSTEMS INC A CLOSELY HELD SOFTWARE COMPANY HERE WON A VICTORY IN A LEGAL BATTLE THAT RAISED FIRST AMENDMENT ISSUES IN THE PERSONAL COMPUTER INDUSTRY US DISTRICT JUDGE EUGENE F LYNCH GRANTED A PRELIMINARY INJUNCTION IN THE COMPANY'S COPYRIGHT INFRINGEMENT SUIT AGAINST COMPETITOR DELRINA CORP DELRINA IN TORONTO SELLS A PROGRAM IN WHICH AN ANIMATED CHARACTER SHOOTS DOWN FLYING TOASTERS THAT RESEMBLE THE IMAGES THAT ARE A HALLMARK OF AFTER DARK BERKELEY SYSTEMS' BESTKNOWN PROGRAM JUDGE LYNCH REJECTED DELRINA'S CONTENTION THAT THE SOCALLED DEATH TOASTER PART OF ITS PROGRAM IS A PARODY PROTECTED BY THE FIRST AMENDMENT HIS INJUNCTION BARS DELRINA FROM SELLING ITS PROGRAM WITH THE TOASTER IMAGES INCLUDED DELRINA EXECUTIVES COULD NOT BE REACHED FOR COMMENT OVER THE WEEKEND 9310110031 931011 KENTUCKY ELECTRIC STEEL PROGRAM ASHLAND KY KENTUCKY ELECTRIC STEEL INC SAID ITS BOARD APPROVED A 15 MILLION TO 17 MILLION FACILITY MODIFICATIONS PROGRAM OVER THE NEXT 18 MONTHS THE COMPANY SAID THE PROGRAM WILL EXPAND ITS CASTING ROLLING AND FINISHING CAPABILITIES A SPOKESMAN SAID KENTUCKY ELECTRIC WILL BE ABLE TO PRODUCE A WIDER RANGE OF SPECIAL BAR QUALITY STEEL USED IN SPECIFIC INDUSTRIAL APPLICATIONS KENTUCKY ELECTRIC SAID THE UPGRADE WILL CAUSE MINIMAL DISRUPTION TO PRODUCTION 9310110030 931011 POLITICS & POLICY US ASSAULT PLANS MAY HAVE PROMPTED OFFER OF A CEASEFIRE UN DELAYED WEEKEND ATTACK AFTER AIDID REPRESENTATIVES MET WITH HOWE ON FRIDAY BY GERALDINE BROOKS STAFF REPORTER OF THE WALL STREET JOURNAL BOSSASO SOMALIA A COMBINATION OF AN IRON FIST AND A STAYED HAND MAY HAVE OPENED THE WAY FOR GEN MOHAMED FARRAH AIDID'S OFFER OF A CEASEFIRE WITH UN FORCES ON FRIDAY NIGHT FEAR OF A RENEWED US ASSAULT ON GEN AIDID'S STRONGHOLDS IN THE SOUTHERN SUBURBS OF MOGADISHU APPARENTLY PROMPTED ELDERS FROM GEN AIDID'S FACTION TO SEEK A MEETING WITH ADM JONATHAN HOWE THE UN SECRETARYGENERAL'S SPECIAL REPRESENTATIVE IN SOMALIA WHILE DECLINING TO GIVE SPECIFICS OF ANY MEETINGS ADM HOWE SAID THAT A NUMBER OF CONTACTS ARE GOING ON AND THAT SOME GOOD THINGS ARE HAPPENING THAT INDICATE A POSITIVE DIRECTION AMONG ELEMENTS OF GEN AIDID'S CLAN HE SAID THAT WHILE HE DIDN'T EXPECT TO MEET PERSONALLY WITH GEN AIDID HE WAS WORKING ON A NUMBER OF ANGLES OF PEACEFUL RESOLUTION IN RESPONSE TO GEN AIDID'S CEASEFIRE WHICH WAS BEING CAREFULLY MONITORED ACTIONS SPEAK LOUDER THAN WORDS ADM HOWE SAID THE REPORTED MEETING CAME AS US MILITARY FLIGHTS CARRYING THE FIRST OF THE HEAVY ARMOR AND REINFORCEMENTS ORDERED THURSDAY BY PRESIDENT CLINTON BEGAN ARRIVING AT MOGADISHU AIRPORT EARLIER IN THE WEEK LEAFLETS DROPPED FROM US HELICOPTERS HAD WARNED CIVILIAN RESIDENTS TO CLEAR A SEVERALBLOCK AREA OF MOGADISHU'S SOUTHERN SUBURBS HUNDREDS OF GEN AIDID'S CLAN MEMBERS HAD POURED OUT OF THE CITY FEARING A DEVASTATING US ATTACK ADM HOWE SAID THAT THE CASUALTIES SUFFERED BY GEN AIDID'S SUPPORTERS DURING LAST WEEK'S GUN BATTLE WITH US FORCES REGRETTABLE AS THEY ARE HAVE HAD AN IMPACT UPON INFLUENTIAL ELEMENTS OF GEN AIDID'S CLAN REPORTS SAY SOME 300 SOMALIS WERE KILLED IN THE BATTLE WITH US RANGERS AND PAKISTANI AND MALAYSIAN TROOPS THE ADMIRAL AND HIS DEPUTIES WERE IN CONFERENCE UNTIL EARLY SATURDAY MORNING AND A SOURCE CLOSE TO THE TALKS SAID THAT A MAJOR MILITARY ASSAULT ON AN AIDID STRONGHOLD THAT HAD BEEN SCHEDULED TO TAKE PLACE ON THE WEEKEND WAS CANCELED ADM HOWE WOULDN'T COMMENT ON ANY POSTPONEMENT BUT SAID THE MILITARY WAS TAKING INTO ACCOUNT THE CESSATION OF HOSTILITIES BY GEN AIDID ADM HOWE SAID HE STILL EXPECTS GEN AIDID TO GIVE AN ACCOUNT OF THE JUNE 5 ASSAULT ON PAKISTANI UN FORCES THAT PRECIPITATED AN INTENSIFICATION OF FIGHTING BETWEEN THE WARLORD AND UN TROOPS HIS STATEMENT MADE IN A TELEPHONE INTERVIEW WITH THE WALL STREET JOURNAL SEEMED TO BE A CONSIDERABLE EASING OF THE ADMIRAL'S EARLIER POSITION THAT GEN AIDID WOULD HAVE TO BE CAPTURED AND TRIED OVER THE KILLINGS OF THE 24 PAKISTANIS HOWEVER IN A SEPARATE INTERVIEW WITH ABCTV'S THIS WEEK WITH DAVID BRINKLEY ADM HOWE INSISTED THAT THERE IS STILL A UN BOUNTY ON GEN AIDID'S HEAD AND THAT UN FORCES ARE STILL ACTIVELY PURSUING GEN AIDID IN THE JOURNAL INTERVIEW ADM HOWE SAID I HAVE ALWAYS BEEN FOR A PEACEFUL RESOLUTION I WILL BE DELIGHTED IF THESE FIRST STEPS REFLECT A GENUINE INTEREST TO RESOLVE IT PEACEFULLY WE CERTAINLY WILL NOT SQUANDER THE OPPORTUNITY HE SAID MORALE HAD IMPROVED IMMENSELY AS A RESULT OF THE DECISION BY PRESIDENT CLINTON TO REINFORCE THE MISSION IF THE INTENSE MILITARY ACTIONS OF THE PAST FOUR MONTHS CREATED TENSIONS AMONG GEN AIDID'S SUPPORTERS THEY HAVE ALSO PUT GREAT PRESSURE ON UN FORCES ESPECIALLY THE AMERICANS TROOPS WHO SURVIVED LAST WEEK'S FIREFIGHT IN SOUTHERN MOGADISHU REPORTED A NIGHTMARE EXPERIENCE OF BEING PINNED DOWN BY SNIPERS WHO THE SOLDIERS SAY DRESSED AS WOMEN OR USED WOMEN AS HUMAN SHIELDS WHILE SOME SOLDIERS REPORT HAVING HELD FIRE TO AVOID SHOOTING THE WOMEN AID WORKERS SAY MANY WOMEN WERE AMONG THE CASUALTIES OF LAST WEEK'S BATTLE WHILE IT WAS MALAYSIANS AND PAKISTANIS WHO CAME TO THE RESCUE OF THE PINNEDDOWN AMERICANS LAST WEEK OTHER CONTINGENTS HAVE BEGUN TO ADOPT WHAT ONE UN OFFICIAL CALLS A RISKAVERSE STRATEGY REFUSING TO BE PUT IN THE FRONT LINES OR TO ANSWER PROVOCATION FROM MILITIAMEN THEY HAVE DECIDED THAT THIS PLACE ISN'T WORTH ONE LIFE THE OFFICIAL SAYS AND THE MILITIAS KNOW HOW TO EXPLOIT THAT STILL NEWS OF THE POSSIBLE CEASEFIRE AND NEGOTIATIONS WITH GEN AIDID WASN'T WELCOMED EVERYWHERE IN SOMALIA HE'S NOT A MAN WHO WILL KEEP HIS PROMISE SAID ABDIRASHID ALI MUSSE A SUPPORTER OF THE SOMALI SALVATION DEMOCRATIC FRONT WHICH BITTERLY OPPOSES GEN AIDID WHATEVER HE SAYS NOW WON'T MAKE ANY DIFFERENCE BUT WILL ONLY DELAY THE LONGTERM STABILITY OF SOMALIA INSTEAD MR MUSSE PROPOSES THAT THE UN ALLOW THE SOMALI FACTIONS OPPOSED TO GEN AIDID INTO THE SOUTHERN SUBURBS TO FINISH HIM OFF ASKED IF THAT WOULDN'T LEAD TO A MASSACRE MR MUSSE SHAKES HIS HEAD HE WOULD SURRENDER MR MUSSE SAYS HE KNOWS THAT A TANK OR A HELICOPTER COMES AND GOES BACK BUT IF WE GO IN WE STAY UNTIL HE'S FINISHED 9310110029 931011 GM RECALLS 700 SCHOOL BUSES DETROIT GENERAL MOTORS CORP SAID IT IS RECALLING 700 OF ITS 1993 CHEVROLET AND GMC TRUCK SCHOOL BUSES IN THE US AND CANADA WITH HYDRAULIC BRAKES FOR A DEFECT THAT MAY RESULT IN A LOSS OF BRAKING ABILITY GM SAID IT WILL REPLACE THE SECONDARY PEDAL STOP ON THE BRAKEPEDAL BRACKET AND INSPECT THE PRIMARY STOP FOR POSSIBLE REPLACEMENT GM SAID THERE HAVE BEEN FOUR INCIDENTS OF BRAKING PROBLEMS REPORTED BUT NO ACCIDENTS OR INJURIES 9310110028 931011 BUSINESS BRIEF MAGMA COPPER CO WORK FORCE TO BE REDUCED OTHERS' PAY WILL BE FROZEN MAGMA COPPER CO TUCSON ARIZ SAID IT WILL REDUCE ITS WORK FORCE OF ABOUT 4300 BY 135 EMPLOYEES BY YEAR END AND FREEZE THE SALARIES OF ITS REMAINING WORKERS THE COPPER PRODUCER WHOSE PROFITS HAVE BEEN HURT BY LOW COPPER PRICES SAID THE COSTCUTTING STEPS ARE INTENDED TO PRESERVE CASH FLOW NEEDED TO COMPLETE SEVERAL CAPITAL PROJECTS INCLUDING TWO MINES AND A SMELTER EXPANSION THE COMPANY SAID THE PROJECTS ARE CRITICAL TO ITS GROWTH AND ABILITY TO COMPETE THE COMPANY IS ALSO IMPLEMENTING A COMPREHENSIVE REVIEW OF ALL CAPITAL AND OPERATING COSTS BUT IT DIDN'T SPECIFY ANY OTHER MEASURES 9310110027 931011 BUSINESS BRIEF BANKAMERICA CORP CONCERN USING STOCK TO BUY LIBERTY BANK FOR 23 MILLION BANKAMERICA CORP ANNOUNCED AN AGREEMENT TO ACQUIRE LIBERTY BANK HAWAII'S 11THLARGEST FINANCIAL INSTITUTION FOR ABOUT 23 MILLION IN BANKAMERICA STOCK UNDER THE AGREEMENT THE 71YEAROLD LIBERTY BANK WILL BE MERGED WITH BANK OF AMERICA HAWAII THE STATE'S THIRDLARGEST BANK BANKAMERICA SAID IT WILL ISSUE STOCK WITH A VALUE EQUIVALENT TO 2854 PER EACH SHARE OF HONOLULUBASED LIBERTY IN ADDITION LIBERTY SHAREHOLDERS COULD RECEIVE UP TO 291 PER SHARE MORE FROM A TRUST UPON THE LIQUIDATION OF CERTAIN LIBERTY ASSETS LIBERTY WAS FOUNDED IN 1922 BY IMMIGRANTS FROM CHINA AND HAS 11 BRANCHES ON OAHU AND 220 MILLION IN LOANS BANK OF AMERICA HAWAII HAS 31 BRANCHES ON HAWAII'S FOUR MAJOR ISLANDS 9310110026 931011 P&G TO ACQUIRE BRAZILIAN BRANDS CINCINNATI PROCTER & GAMBLE CO MAKING ITS FIRST MOVE INTO BRAZIL'S MARKET FOR FEMININEPROTECTION PRODUCTS SAID IT WILL ACQUIRE A UNIT OF PROHIGIENE A CLOSELY HELD MAKER OF PAPER PRODUCTS BASED IN SAO PAULO BRAZIL TERMS WEREN'T DISCLOSED UNDER THE AGREEMENT P&G WILL ACQUIRE ELA THE NO 3 BRAND OF FEMININEPROTECTION PAD IN BRAZIL AS WELL AS SEVERAL SMALLER BRANDS A P&G SPOKESMAN SAID ELA HAS 13 OF THE BRAZILIAN MARKET SOME 150 PROHIGIENE EMPLOYEES WILL JOIN P&G WHICH CURRENTLY EMPLOYS 1300 PEOPLE IN BRAZIL 9310110025 931011 BUSINESS BRIEF NORTHERN TELECOM LTD MACDONALD TO HEAD UNIT FORMED FOR CHINA MARKET NORTHERN TELECOM LTD STEPPED UP EFFORTS TO WIN A SHARE OF THE TELECOMMUNICATIONS MARKET IN CHINA NAMING A TOP EXECUTIVE TO HEAD A NEW BUSINESS UNIT NORTEL CHINA NORTEL CHINA WILL BE BASED IN BEIJING AND RUN BY ARTHUR A MACDONALD 51 YEARS OLD AND PREVIOUSLY GROUP VICE PRESIDENT OF DATA AND BROADBAND SYSTEMS MULTIMEDIA COMMUNICATIONS SEPARATELY THE MISSISSAUGA ONTARIO COMPANY ANNOUNCED THE SALE OF 159 MILLION OF SWITCHING EQUIPMENT TO FOUR CHINESE PROVINCES WITH INSTALLATION OF MORE THAN 160 NORTHERN TELECOM DMS SWITCHING SYSTEMS EARLIER THIS YEAR NORTHERN TELECOM SIGNED A PACT WITH CHINA TO NEGOTIATE JOINT MANUFACTURING AND SALES OF TELECOMMUNICATIONS SWITCHING AND TRANSMISSION EQUIPMENT ADVANCED COMPUTER CHIPS AND TRAINING SERVICES IN CHINA 9310110024 931011 TECHNOLOGY BRIEF EVEREX SYSTEMS INC COMPUTER COMPANY TO SELL MOST ASSETS TO ASIAN GROUP EVEREX SYSTEMS INC ONCE A FASTGROWING PERSONAL COMPUTER MAKER ANNOUNCED AN AGREEMENT TO SELL MOST OF ITS ASSETS OUT OF CHAPTER 11 PROCEEDINGS TO YSIDE INVESTMENT GROUP AN ALLIANCE OF ASIAN COMPANIES LED BY FORMOSA PLASTICS GROUP OF TAIWAN THE PURCHASE WHICH MUST BE APPROVED BY US BANKRUPTCY COURT INCLUDES THE EVEREX TRADE NAME PATENTS CURRENT PRODUCTS AND RESEARCH PROJECTS EVEREX ALSO SAID ITS SUBSIDIARY IN GAITHERSBURG MD EVEREX FEDERAL SYSTEMS INC WILL BE STREAMLINED AND CONSOLIDATED WITH YSIDE'S OPERATIONS IN FREMONT CALIF WHERE EVEREX IS BASED THE PURCHASE PRICE FOR THE ASSETS WAS NOT DISCLOSED EVEREX SAID THE SALE COUPLED WITH DISPOSITION OF OTHER ASSETS WILL BRING VALUE TO EVEREX'S CREDITORS BUT NOT TO THE COMPANY'S SHAREHOLDERS EVEREX FILED ITS CHAPTER 11 PETITION LAST JANUARY 9310110023 931011 GERRITY SETS MOVE TO BIG BOARD DENVER GERRITY OIL & GAS CORP SAID ITS COMMON STOCK WILL BEGIN TRADING TOMORROW ON THE NEW YORK STOCK EXCHANGE WITH THE SYMBOL GOG GERRITY'S STOCK HAS BEEN TRADING OVER THE COUNTER SINCE THE COMPANY'S INITIAL PUBLIC OFFERING IN THE THIRD QUARTER OF 1991 9310110022 931011 TECHNOLOGY CALIFORNIA CITY CHOSEN FOR COMPUTER DISPLAY BASE SAN JOSE CALIF THE US DISPLAY CONSORTIUM PICKED THIS CITY AS HEADQUARTERS FOR A HIGHPROFILE EFFORT TO BEGIN BUILDING A NEW COMPUTER DISPLAY INDUSTRY IN THE US REVERSING A STRING OF FAILURES BY CALIFORNIA TO ATTRACT MAJOR RESEARCH AND INDUSTRIAL PROJECTS THE CONSORTIUM KNOWN AS USDC HAS RECEIVED 20 MILLION IN FUNDING FROM THE DEFENSE DEPARTMENT'S ADVANCED RESEARCH PROJECTS AGENCY FOR RESEARCH ON FLATPANEL DISPLAYS USED IN MILITARY AIRCRAFT PORTABLE COMPUTERS AND CONSUMER ELECTRONICS DEVICES JAPANESE COMPANIES NOW SUPPLY NEARLY ALL ADVANCED FLATPANEL DISPLAYS FOR THE US COMPUTER INDUSTRY MEMBERS OF USDC INCLUDE AMERICAN TELEPHONE & TELEGRAPH CO XEROX CORP TEKTRONIX INC STANDISH INDUSTRIES INC AND PLANAR SYSTEMS INC USDC WHICH WILL START IN SAN JOSE WITH AN OFFICE OF ONLY FIVE PEOPLE PLANS TO FUND RESEARCH PROJECTS FOR PRODUCTION EQUIPMENT AND MATERIALS NEEDED TO BUILD A SUPPLY INFRASTRUCTURE FOR THE DISPLAY INDUSTRY MEMBERS OF THE CONSORTIUM HOPE TO RECEIVE EVEN LARGER PENTAGON GRANTS TO HELP BUILD A PILOT PRODUCTION PLANT AND EVENTUALLY A FULLSCALE FACTORY FOR DISPLAYS 9310110021 931011 INTERNATIONAL PIRELLI OPENS CHINA PLANT MILAN ITALIAN TIRE MANUFACTURER PIRELLI SPA SAID IT OPENED A NEW TIRE FACTORY IN THE NORTHERN CHINESE CITY OF QINGDAO THE COMPANY SAID THE FACILITY IS THE LARGEST FACTORY IN CHINA MAKING ALLSTEEL RADIAL TIRES FOR LIGHT AND HEAVYDUTY COMMERCIAL VEHICLES THE NEW PLANT WITH AN ANNUAL PRODUCTION CAPACITY OF 300000 TRUCK AND BUS TIRES JOINS AN EXISTING PIRELLI FACTORY IN MUDANJIANG A THIRD TIRE FACTORY IS BEING BUILT BY PIRELLI IN SHENYANG PIRELLI DIDN'T SAY HOW MUCH IT HAS INVESTED IN THESE FACTORIES 9310110020 931011 BUSINESS BRIEF AMDAHL CORP MAINFRAME COMPUTER MAKER EXPECTS THIRDPERIOD LOSS AMDAHL CORP EXPERIENCING FURTHER PROBLEMS IN THE STAGNANT MARKET FOR MAINFRAME COMPUTERS PREDICTED A HEFTY THIRDQUARTER LOSS AND SAID IT MUST FURTHER RESTRUCTURE OPERATIONS TO CUT COSTS THE MAINFRAME COMPUTER MAKER'S STOCK FELL 148 PERCENT OR 875 CENTS TO CLOSE AT 5 ON THE AMERICAN STOCK EXCHANGE ON FRIDAY THE SUNNYVALE CALIF COMPANY SAID LOSSES ON OPERATIONS WILL BE CONSIDERABLY LARGER THAN THE 236 MILLION OR 21 CENTS A SHARE REPORTED IN ITS SECOND QUARTER IN ADDITION THE COMPANY SAID IT WILL INCUR RESTRUCTURING CHARGES THAT WILL FURTHER INCREASE ITS EXPECTED THIRDQUARTER NET LOSS A YEAR EARLIER AMDAHL REPORTED A NET LOSS OF 308 MILLION OR 27 CENTS A SHARE ON REVENUE OF 5888 MILLION AMDAHL HAS CUT 1300 JOBS THIS YEAR AND A COMPANY SPOKESMAN SAID FURTHER CUTS IN ITS 7400PERSON WORK FORCE ARE LIKELY AS PART OF THE RESTRUCTURING 9310110019 931011 BUSINESS BRIEF NOVA CORP OF ALBERTA REORGANIZATION IS PLANNED IN BID TO BETTER RAISE CAPITAL NOVA CORP OF ALBERTA SAID IT PLANS TO REORGANIZE ITS CORPORATE STRUCTURE IN ORDER TO RAISE CAPITAL MORE EFFECTIVELY THE CALGARY PIPELINE AND CHEMICALS COMPANY SAID IT EXPECTS ITS CAPITAL REQUIREMENTS TO INCREASE BY HUNDREDS OF MILLIONS OF DOLLARS A YEAR IF IT IS TO RESPOND TO A BIG JUMP IN REQUESTS FOR NEW PIPELINE CAPACITY FROM ITS ALBERTA GAS PRODUCER CUSTOMERS NOVA'S PRESIDENT AND CHIEF EXECUTIVE OFFICER TED NEWALL SAID ACCOMMODATING THE NEW SPATE OF REQUESTS COULD EASILY ENTAIL A 200 MILLION TO 300 MILLION CANADIAN DOLLAR US1498 MILLION TO US2246 MILLION A YEAR INCREASE IN CAPITAL SPENDING OVER ESTIMATED 1993 PIPELINE SPENDING OF C550 MILLION TO WIDEN ITS OPTIONS FOR RAISING CAPITAL NOVA HAS PROPOSED TO CREATE A HOLDING COMPANY OWNING A STANDALONE PIPELINE CHEMICALS AND GAS SERVICES UNIT THE PIPELINE OPERATIONS ARE NOW ROLLED INTO A NOVA PARENT COMPANY THAT HAS SEVERAL WHOLLY OWNED AND PARTLY OWNED UNITS 9310110018 931011 BUSINESS BRIEF AMERICAN FILM TECHNOLOGIES INC ADVISABILITY OF PROTECTION FROM CREDITORS IS DISCUSSED AMERICAN FILM TECHNOLOGIES INC LOS ANGELES SAID IT IS DISCUSSING WITH ITS LEGAL COUNSEL THE ADVISABILITY OF SEEKING PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE THE COMPANY WHICH PRODUCES INTEGRATED DIGITAL ANIMATION AND SPECIAL EFFECTS FOR TELEVISION AND FEATURE FILMS ALSO SAID IN A STATEMENT THAT IT SIGNIFICANTLY REDUCED OPERATIONS IN THE US AND TEMPORARILY SUSPENDED BUSINESS OPERATIONS IN MEXICO UNDER CHAPTER 11 A COMPANY CONTINUES OPERATING AND HAS COURT PROTECTION FROM ITS CREDITORS WHILE IT WORKS OUT A PLAN TO REORGANIZE ITS DEBT AMERICAN FILM DIDN'T RETURN A CALL SEEKING COMMENT THE COMPANY'S ANNOUNCEMENT CAME AFTER THE CLOSE OF THE MARKETS ON FRIDAY TRADING IN THE COMPANY'S COMMON STOCK WAS HALTED AT THE COMPANY'S REQUEST MIDDAY PENDING THE ANNOUNCEMENT THE LAST QUOTE IN NATIONAL OVERTHECOUNTER TRADING WAS 875 CENTS A SHARE DOWN 3125 CENTS 9310110017 931011 BUSINESS BRIEF CHEVRON CORP APPEALS COURT BLOCKS ORDER BY THE EPA TO STOP PROJECT A FEDERAL APPEALS COURT IN SAN FRANCISCO GRANTED CHEVRON CORP'S REQUEST TO BLOCK AN ENVIRONMENTAL PROTECTION AGENCY ORDER THAT HAD STOPPED WORK ON THE COMPANY'S 700 MILLION CLEANFUELS PROJECT IN EL SEGUNDO CALIF THE EPA ORDER TO CLOSE DOWN THE PROJECT AROSE OUT OF AGENCY OFFICIALS' ALLEGATIONS THAT CHEVRON VIOLATED CLEANAIR LAWS BY STARTING WORK ON THE PROJECT BEFORE OBTAINING A FORMAL CONSTRUCTION PERMIT ON FRIDAY CHEVRON ASKED THE COURT TO STAY THE EPA'S ORDER WHICH IDLED THE PROJECT AT 2 PM PDT THAT DAY THE PUBLIC DISPUTE OVER UPGRADING CHEVRON'S EL SEGUNDO REFINERY TO PRODUCE CLEANERBURNING REFORMULATED GASOLINE FOLLOWED A RECORD EPAPROPOSED 17 MILLION FINE AGAINST ANOTHER CHEVRON UNIT FOR ALLEGED VIOLATIONS OF THE TOXIC SUBSTANCES CONTROL ACT 9310110016 931011 BUSINESS BRIEF CONTINENTAL CORP THREE ACCOUNTING CHANGES TO BE REPORTED IN 3RD PERIOD CONTINENTAL CORP NEW YORK SAID IT IS MAKING THREE ACCOUNTING CHANGES THAT WILL BE REPORTED IN ITS THIRDQUARTER FINANCIAL RESULTS THE INSURANCE COMPANY ALSO SAID THE RECENT SALE OF A UNIT WILL REDUCE ITS INCOME FROM CONTINUING OPERATIONS BY 14 CENTS A SHARE FOR THE FIRST HALF OF 1993 AND 34 CENTS FOR THE FULL YEAR 1992 NET INCOME WILL REMAIN UNCHANGED CONTINENTAL ANNOUNCED IN MAY PLANS TO SELL THE UNIT AFCO CREDIT CORP TO MELLON BANK CORP CONTINENTAL SAID IT WILL RECEIVE MORE THAN 200 MILLION FROM THE PROPOSED SALE FOR THE 1992 THIRD QUARTER CONTINENTAL REPORTED A LOSS OF 1421 MILLION OR 260 A SHARE INCLUDING A LOSS FROM DISCONTINUED OPERATIONS OF 1565 MILLION OR 285 A SHARE 9310110015 931011 BUSINESS BRIEF JAMES RIVER CORP AFFILIATE COMPLETES A SALE OF MORE THAN 300000 ACRES JAMES RIVER CORP RICHMOND VA SAID AN AFFILIATE COMPLETED A SALE OF MORE THAN 300000 ACRES OF TIMBERLAND TO HANCOCK TIMBER RESOURCE GROUP A DIVISION OF JOHN HANCOCK FINANCIAL SERVICES BOSTON THE HANCOCK UNIT A MANAGER OF INSTITUTIONAL TIMBERLAND INVESTMENTS HAS OVER TWO MILLION ACRES UNDER MANAGEMENT JAMES RIVER WILL USE 100 MILLION IN PROCEEEDS FROM THE SALE AND OTHER TRANSACTIONS TO HELP PURCHASE THE REMAINING 77 OF THE AFFILIATE DIAMOND OCCIDENTAL FOREST INC WHICH WILL CONTINUE TO OWN 500000 ACRES OF TIMBERLAND JAMES RIVER IS A MARKETER AND MAKER OF CONSUMER PRODUCTS FOOD AND CONSUMER PACKAGING AND COMMUNICATIONS PAPERS 9310110014 931011 SMALL STOCK FOCUS NEW GOLF SHARES FLOURISH UNDER CALLAWAY'S SHADOW BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IF YOU'RE TEEING UP TO BUY SOME OF THE HOT NEW GOLF STOCKS THINK AGAIN THE GRANDDADDY OF THEM ALL CALLAWAY GOLF IS STILL THE DARLING OF VETERAN GOLF INVESTORS AND ANALYSTS SURE SOME BIG BUCKS HAVE BEEN MADE BUYING UP THE LATEST GOLFEQUIPMENT STOCKS TO GO PUBLIC SUCH AS COBRA GOLF AND ROYAL GRIP BUT EVEN THEY HAVE ALREADY RETREATED SOME FROM THEIR HIGHS AND EXPERTS WARN THAT THE INDUSTRY LIKE THE OVERALL ECONOMY IS ON A SLOWGROWTH TRAJECTORY THE BOOM YEARS FOR GOLF OF THE PAST DECADE ARE OVER SO PICKING THE RIGHT STOCKS WILL BE ESSENTIAL IF YOU WANT TO AVOID SUBPAR PERFORMANCE THE PIE IS NOT GOING TO EXPAND OVER THE SHORT TERM SAYS ERIC APPELL A RETAILINDUSTRY ANALYST WITH TORREY PINES SECURITIES IN SAN DIEGO SO GROWTH IN EARNINGS WILL ONLY COME FROM GROWTH IN MARKET SHARE THE COMPANIES THAT ARE GOING TO SUCCEED ARE THOSE WITH INNOVATIVE PRODUCTS AND GOOD MANAGEMENT NO NEW GOLF STOCKS FOR MR APPELL HE'S STICKING WITH HIS BUY RECOMMENDATION ON CALLAWAY A CARLSBAD CALIF MAKER OF PREMIUMPRICED CLUBS THAT WENT PUBLIC IN FEBRUARY 1992 REVENUE AT CALLAWAY BEST KNOWN FOR ITS OVERSIZED BIG BERTHA DRIVERS AND FAIRWAY WOODS HAS DOUBLED IN EACH OF THE PAST FOUR YEARS AND NET INCOME HAS NEARLY TREBLED EVERY YEAR OVER THE SAME PERIOD THE CLUB MAKER HAS BEEN ONE OF THE FASTESTGROWING US COMPANIES OF THIS DECADE IT'S QUITE CLEAR THAT CALLAWAY HAS EXTENDED A LONG COATTAIL TO THESE NEW IPOS MR APPELL SAYS REFERRING TO THE INITIAL PUBLIC OFFERINGS OF COBRA AND ROYAL GRIP LAST MONTH AND LAST JUNE OF ALDILA A SUPPLIER OF GRAPHITE SHAFTS TO CLUB MANUFACTURERS CALLAWAY'S SHARES CLOSED UNCHANGED FRIDAY AT 61 3/4 IN TRADING ON THE NEW YORK STOCK EXCHANGE HAVING GONE PUBLIC AT 10 ON A SPLITADJUSTED BASIS THE STOCK CURRENTLY TRADES AT A MULTIPLE OF 35 TIMES THE PAST FOUR QUARTERS' EARNINGS AND JUST UNDER 30 TIMES WALL STREET PROJECTIONS FOR 1993 EARNINGS OF ABOUT 210 A SHARE ANALYSTS AT MERRILL LYNCH WHICH TOOK THE COMPANY PUBLIC PROJECT CALLAWAY'S NET INCOME WILL RISE TO BETWEEN 2 AND 205 A SHARE THIS YEAR FROM 113 IN 1992 DOUG JOHNSON PORTFOLIO MANAGER OF SAFECO EQUITY FUND IN SEATTLE ONE OF CALLAWAY'S LARGEST INSTITUTIONAL SHAREHOLDERS IS A BIG FAN OF THE COMPANY I BOUGHT THE STOCK AT THE IPO AND HAVE ADDED TO IT SINCE WE'RE HAPPY WITH THE STOCK THEY'VE BEATEN ANALYSTS' EARNINGS EXPECTATIONS IN EVERY QUARTER THAT THEY'VE REPORTED SO FAR I HAVEN'T BOUGHT ANY OF THE NEW ISSUES BECAUSE NONE HAS APPEALED TO ME AS MUCH HE SAYS EVERYBODY THOUGHT CALLAWAY'S OVERSIZED CLUB PRODUCTS WOULD BE JUST A FAD BUT I THINK THEY'RE PRODUCTS THAT HAVE A LOT OF LEGS TO THEM EVEN INVESTORS WHO ARE TAKING PROFITS ON THEIR CALLAWAY STOCK PRAISE THE COMPANY FMR CORP A BOSTON HOLDING COMPANY FOR FIDELITY MANAGEMENT & RESEARCH CORP RECENTLY CUT ITS HOLDING IN CALLAWAY TO 44 FROM 63 THE MOVE SAID A FIDELITY OFFICIAL REFLECTS A BIT OF PROFITTAKING IN THE WAKE OF THE STOCK'S STUNNING SIXFOLD RISE SINCE GOING PUBLIC BUT FIDELITY REMAINS A LOYAL INVESTOR WE'VE OWNED THE STOCK A LONG TIME SAID ROBERT EWING AN EQUITY ANALYST WITH FIDELITY INVESTMENTS BY OWNING CLOSE TO 5 OF THE COMPANY IT'S OBVIOUS WE'RE STILL VERY ENTHUSIASTIC THERE IS A FEAR THAT SMALLER CLOSELY HELD CLUB MAKERS WILL TRY TO EMULATE CALLAWAY'S DESIGNS PERHAPS STALLING ITS GROWTH RATE BUT ANALYSTS SUCH AS STEVEN DELUCA AREN'T MUCH WORRIED ABOUT THAT POSSIBILITY THIS HISTORICALLY HAS BEEN A COPYCAT BUSINESS SAID MR DELUCA AN ANALYST WITH CRUTTENDEN & CO IN IRVINE CALIF BUT COMPANIES LIKE CALLAWAY AND CLOSELY HELD KARSTEN MANUFACTURING WHICH MAKES PING CLUBS HAVE INTRODUCED NEW CLUBS THAT ACTUALLY WILL HELP IMPROVE YOUR GAME POINTING OUT THAT CALLAWAY THE WORLD'S LARGEST MAKER OF METAL WOODS MADE OF STAINLESS STEEL MAY FIND IT TOUGH TO MAINTAIN ITS EXPLOSIVE GROWTH RATE MR DELUCA SAYS THAT THE STOCK SHOULD NONETHELESS CONTINUE TO DO WELL HE PARTICULARLY LIKES THE FACT THAT CALLAWAY FOCUSES ALL ITS EFFORTS ON CLUB HEAD DESIGN THE COMPANY HAS PIONEERED THE PUBLICLY HELD CATEGORY FOR CLUB MANUFACTURERS AND WILL CONTINUE TO FOCUS ON THE DESIGN AND INNOVATION OF CLUBS HE SAYS LEAVING GRIP DESIGN AND SHAFT DESIGN TO OTHERS WORLDWIDE DEMAND REMAINS STRONG FOR BIG BERTHAS WHICH WERE INTRODUCED OVER TWO YEARS AGO AND HAVE DONE WELL IN JAPAN HE ADDS COBRA ON THE OTHER HAND HAS TAKEN A SOMEWHAT DIFFERENT TACK NOT ONLY HAS IT DEVELOPED AN OVERSIZEHEAD LINE OF ITS OWN INCORPORATING BOTH IRONS AND DRIVERS BUT IT ALSO HAS ENGINEERED ITS OWN GRAPHITE SHAFTS FOR EXCLUSIVE USE IN ITS CLUBS THAT STRATEGY SEEMS TO BE PAYING OFF OPERATING EARNINGS INCREASED 81 TO 77 MILLION IN THE FIRST HALF ACCORDING TO COBRA'S PROSPECTUS COBRA ALSO BASED IN CARLSBAD WENT PUBLIC ON SEPT 21 AT 21 THE STOCK CLOSED FRIDAY AT 32 1/8 UP 1/8 BUT OFF FROM ITS HIGH OF 36 BUT ANALYSTS SAY THAT CALLAWAY WHICH SO FAR HASN'T INCLUDED IRONS IN ITS OVERSIZE PRODUCT LINEUP MAY SOON DO SO POSING A POTENTIAL THREAT TO COBRA'S CORE BUSINESS IF CALLAWAY DOES MOVE INTO OVERSIZED IRONS AS WE EXPECT IT COULD SLOW THE ORDER FLOW AT COBRA SAYS MR APPELL THE TORREY PINES ANALYST IN ANY EVENT SOME ANALYSTS BELIEVE THAT PREMIUMCLUB MAKERS WHICH SELL STATEOFTHEART STAINLESS STEEL CLUBS DIRECTLY TO THE CONSUMER ARE AMONG THE RISKIEST GOLF PLAYS SIMPLY BECAUSE GOLF CLUB FADS COME AND GO IT'S LIKE A BRAND NAME FALLING OUT OF FAVOR SAYS MR DELUCA THE CLUB MAKERS ARE SELLING TO THE FICKLE CONSUMER WHILE COMPONENT SUPPLIERS ARE SELLING TO A REGULAR AND BROADBASED GROUP OF EQUIPMENT MANUFACTURERS CERTAINLY INVESTORS FLOCKED TO ROYAL GRIP A SCOTTSDALE ARIZ PURVEYOR OF GOLF CLUB GRIPS IT WENT PUBLIC AT 12 A FEW DAYS AFTER COBRA AND CLOSED FRIDAY AT 17 1/4 UP 1/2 CRITICS OF THE STOCK SAY THAT OF THE MANY GOLFRELATED STOCKS GOING PUBLIC SINCE 1992 ROYAL GRIP OFFERS THE LEAST UNUSUAL PRODUCT WHAT'S MORE THEY SAY THAT THE GOLFGRIP BUSINESS IS ALREADY DOMINATED BY EATON CORP A CLEVELAND CONGLOMERATE WITH LOTS OF FINANCIAL CLOUT ALTHOUGH COMPONENT MANUFACTURERS AREN'T LIKELY TO EXPERIENCE THE KIND OF EXPLOSIVE GROWTH RATES THAT THE LEADING CLUB MAKERS ARE ENJOYING AT LEAST FOR THE MOMENT ONE NEW ISSUE STANDS OUT SAYS MR DELUCA ALDILA A CLUBSHAFT MANUFACTURER IN SAN DIEGO IS IN A PRIME POSITION TO BENEFIT FROM A GENERAL SHIFT TOWARD GRAPHITE SHAFTS FROM STEEL SHAFTS HE SAYS ALDILA OFFERED AT 14 CLOSED UNCHANGED FRIDAY AT 31 OFF ITS PEAK OF 36 1/2 AND IF ALL THOSE STOCKS DON'T OFFER A LARGE ENOUGH SELECTION JUST BE PATIENT CLUB CAR A MAKER OF ELECTRIC AND GASOPERATED GOLF CARS IS GOING PUBLIC OCT 18 WITH ABOUT 41 MILLION SHARES TO BE OFFERED AT BETWEEN 14 AND 16 THROUGH ITS LEAD MANAGER DONALDSON LUFKIN & JENRETTE THE RUSSELL 2000 INDEX A BAROMETER OF SMALLCAPITALIZATION STOCKS TRADED OVER THE COUNTER AND ON THE MAJOR EXCHANGES DROPPED 010 POINT TO FINISH AT 25396 FOR THE WEEK THE RUSSELL 2000 GAINED 096 POINT OR 038 ON THE ACQUISITIONS FRONT WESTERN WASTE INDUSTRIES NYSE TORRANCE CALIF TUMBLED 6 3/4 TO 11 FOLLOWING NEWS THAT IT HAS ENDED TALKS REGARDING A PROPOSED MERGER WITH BROWNINGFERRIS INDUSTRIES BROWNINGFERRIS NYSE ADDED 5/8 TO 24 THE TWO COMPANIES SIGNED A LETTER OF INTENT LAST MONTH UNDER WHICH BROWNINGFERRIS WAS TO ACQUIRE WESTERN WASTE IN A STOCK SWAP AMONG FRIDAY'S BIG GAINERS IN SMALLCAP STOCKS NEW ISSUE DETROIT DIESEL NYSE ROCKETED 5 7/8 TO 25 7/8 IN HEAVY TRADING THE COMPANY SOLD 475 MILLION SHARES IN AN INITIAL PUBLIC OFFERING PRICED THURSDAY AT 20 A SHARE THROUGH UNDERWRITERS LED BY MERRILL LYNCH NOT ALL SMALLCAP AUTOMOTIVE STOCKS PERFORMED SO WELL HOWEVER SPARTAN MOTORS SAID IT WILL POST THIRDQUARTER NET INCOME OF 15 TO 18 CENTS A SHARE BELOW THE CONSENSUS FORECAST OF 24 CENTS CAUSING ITS STOCK PRICE TO SLIDE 3 5/8 TO 13 3/8 THE CHASSIS MANUFACTURER'S YEAREARLIER EARNINGS WERE RESTATED TO 20 CENTS A SHARE FROM 30 CENTS REFLECTING A 3FOR2 STOCK SPLIT ON JUNE 30 A PROJECTION OF WEAKERTHANEXPECTED EARNINGS ALSO TOOK ITS TOLL ON THE STOCK OF MARCAM CORP NEWTON MASS THE COMPANY'S SHARES TUMBLED 3 TO 8 1/2 AFTER THE SUPPLIER OF APPLICATIONS SOFTWARE AND SERVICES FOR PROCESS MANUFACTURERS ESTIMATED LATE THURSDAY THAT IT WILL REPORT FISCAL FOURTHQUARTER NET INCOME OF 20 CENTS TO 30 CENTS A SHARE ON REVENUE OF 32 MILLION TO 34 MILLION THAT COMPARES WITH 30 CENTS A SHARE EARNED A YEAR AGO ON REVENUE OF 29 MILLION CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE 9310110013 931011 CARL KARCHER ORDERED BY BANK TO PAY LOAN OR IT WILL SELL STOCK ANAHEIM CALIF A BANK ORDERED CARL N KARCHER OUSTED THIS MONTH AS CHAIRMAN OF CARL KARCHER ENTERPRISES INC TO IMMEDIATELY PAY 49 MILLION ON A LOAN THAT IS IN DEFAULT OR IT WILL SELL THE STOCK HE PLEDGED AS COLLATERAL A SALE OF MR KARCHER'S SHARES COULD DERAIL HIS PLANS TO LAUNCH A PROXY BATTLE TO OUST DIRECTORS OF THE FASTFOOD CHAIN HE FOUNDED 52 YEARS AGO MR KARCHER 76 YEARS OLD WHO HOLDS A 34 STAKE IN THE COMPANY PLEDGED NEARLY ONE MILLION OF HIS 62 MILLION CARL KARCHER ENTERPRISES SHARES AS COLLATERAL ON THE LOAN WITH COMMERCIAL CENTER BANK OF SANTA ANA CALIF THE BANK SAID IT WOULD BEGIN STOCK SALES AS EARLY AS TOMORROW UNLESS IT RECEIVED PAY MENT AT CURRENT MARKET PRICES THE BANK WOULD HAVE TO SELL AROUND 600000 SHARES TO COVER THE AMOUNT IT IS OWED IN NATIONAL OVERTHECOUNTER TRADING FRIDAY CARL KARCHER ENTERPRISES SHARES CLOSED AT 8 UNCHANGED MR KARCHER ALSO PLEDGED 36 MILLION SHARES AS SECURITY ON A LOAN WITH UNION BANK OF SAN FRANCISCO THAT IS ALSO IN DE FAULT THOUGH THAT BANK HASN'T TAKEN ANY ACTION YET TO SEIZE THE SHARES PRINCIPAL AND INTEREST ON THAT LOAN TOTALS MORE THAN 25 MILLION ASKED WHETHER MR KARCHER WOULD BE ABLE TO COME UP WITH THE 49 MILLION IN TIME EDWARD PASQUALE MR KARCHER'S PERSONAL FINANCIAL ADVISER SAID FRIDAY WE'RE WORKING ON IT MR KARCHER'S FINANCIAL WOES STEM FROM SEVERAL INVESTMENTS THAT SOURED ALONG WITH SOUTHERN CALIFORNIA'S REALESTATE MARKET 9310110011 931011 BUSINESS BRIEF RIGGS NATIONAL BANK CORP PROFIT FELL 43 REFLECTING 3RDPERIOD INTEREST INCOME RIGGS NATIONAL BANK CORP'S THIRDQUARTER PROFIT FELL 43 PARTLY REFLECTING LOWER NET INTEREST INCOME ALTHOUGH NONPERFORMING ASSETS DECLINED TO THEIR LOWEST LEVEL IN THREE YEARS THE BANK HOLDING COMPANY IN WASHINGTON SAID NET INCOME WAS ALMOST 3 MILLION OR 10 CENTS A SHARE VS A NET LOSS OF 726 MILLION OR 287 A SHARE IN THE 1993 SECOND QUARTER AND 52 MILLION OR 21 CENTS A SHARE IN THE THIRD QUARTER OF 1992 NONPERFORMING ASSETS FELL TO 271 MILLION FROM 2997 MILLION JOE L ALLBRITTON PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID NET INTEREST EXPENSE FELL TO 503 MILLION FROM 682 MILLION THE BANK NAMED WELLREGARDED TURNAROUND SPECIALIST PAUL M HOMAN PRESIDENT AND CHIEF EXECUTIVE OF RIGGS NATIONAL BANK OF WASHINGTON DC IN MAY MR HOMAN HAD SAID HE WOULD MOVE AGGRESSIVELY TO CLEAN UP RIGGS'S PORTFOLIO WHICH INCLUDED ABOUT 230 MILLION IN NONPERFORMING LOANS 9310110010 931011 BUSINESS BRIEF SANTA CRUZ OPERATION INC REVENUE PROJECTIONS RISE FOR FISCAL FOURTH QUARTER SANTA CRUZ OPERATION INC SAID IT EXPECTS TO REPORT THAT FISCAL FOURTHQUARTER REVENUE WAS SLIGHTLY BETTER THAN ANTICIPATED AS THE SOFTWARE MAKER TRIED TO COUNTER RUMORS THAT HURT ITS STOCK LAST WEEK THE SANTA CRUZ CALIF COMPANY SAID SALES FOR THE PERIOD ENDED SEPT 30 WERE BETWEEN 46 MILLION AND 47 MILLION ANALYSTS HAD EXPECTED REVENUE OF 44 MILLION TO 45 MILLION THE COMPANY SAID JEFF FINN THE COMPANY'S DIRECTOR OF INVESTOR RELATIONS SAID THE FORECAST WAS ISSUED BECAUSE OF RUMORS THAT SANTA CRUZ WOULD REPORT A SALES SHORTFALL THE COMPANY'S STOCK WHICH HIT 10 ON TUESDAY TRADED AS LOW AS 775 THURSDAY IT CLOSED UNCHANGED FRIDAY AT 8125 IN NATIONAL OVERTHECOUNTER TRADING 9310110009 931011 REVIEW & OUTLOOK EDITORIAL NOT CHILD'S PLAY FLORIDA AUTHORITIES HAVE ARRESTED FOUR TEENAGERS IN THE WIDELY PUBLICIZED HIGHWAY RESTSTOP KILLING LAST MONTH OF BRITISH TOURIST GARY COLLEY THE AGES OF THE BOYS ARE UNCLEAR BUT REPORTS AGREE THAT THE OLDEST IS 17 AND THE YOUNGEST INCREDIBLY JUST 13 EVEN MORE INCREDIBLE ARE THE APPARENT CRIMINAL HISTORIES OF THE FOUR YOUTHS THEY ADD FURTHER PROOF THAT JUVENILE JUSTICE DOES LITTLE JUSTICE THE STATE'S LAWS MAKE OFFICIAL DISCLOSURE OF JUVENILE ARREST RECORDS ILLEGAL BUT LOCAL PUBLICATIONS HAVE REPORTED THAT AT LEAST THREE OF THE FOUR BOYS HAVE BEEN IN AND OUT OF TROUBLE FOR MANY YEARS THE ORLANDO SENTINEL SAYS THE 13YEAROLD HAS BEEN CHARGED WITH DOZENS OF CRIMES AND THE MIAMI HERALD REPORTS HE HAS 15 PREVIOUS ARRESTS ON 50PLUS CHARGES THE BOY WHO IS EITHER 14 OR 15 IS REPORTED TO HAVE 26 PREVIOUS ARRESTS THE 17YEAROLD IS SAID TO HAVE BEEN ARRESTED 30 TIMES MOST INCREDIBLE OF ALL WHETHER THESE BOYS WERE RESPONSIBLE FOR THE MURDER OF MR COLLEY IS THE FACT THAT THEY WERE OUT ON THE STREETS AT ALL IT'S WELLESTABLISHED THAT MOST VIOLENT CRIMES ARE COMMITTED BY A HANDFUL OF REPEAT OFFENDERS BUT BAD BOYS ARE ROUTINELY SENT BACK TO THE STREETS TO DO MORE BAD THINGS THE FLORIDA DEPARTMENT OF LAW ENFORCEMENT REPORTED LAST WEEK THAT JUVENILE ARRESTS FOR MURDER ARE UP 17 THIS YEAR AND THAT ARRESTS FOR RAPE INCREASED 33 THE STATE SECRETARY OF COMMERCE TOLD A GROUP OF CANADIAN REPORTERS THAT 80 OF THE SUSPECTS IN CRIMES AGAINST TOURISTS WERE TEENAGERS UNDER FLORIDA LAW THE MAXIMUM SENTENCE FOR A JUVENILE IS SIX MONTHS PER CHARGE EVEN IF THAT CHARGE IS MURDER THE LAW ALSO FORBIDS THE RELEASE OF ANY INFORMATION ABOUT A MINOR INCLUDING HIS NAME FLORIDA LAWS ARE TYPICAL IN MOST STATES THE ONLY WAY A MINOR MAY RECEIVE A SENTENCE COMMENSURATE WITH THE CRIME IS TO TRY HIM AS AN ADULT AN OPTION A GRAND JURY IS CONSIDERING IN THE CASE OF SOME OR ALL OF THE BOYS ARRESTED FOR THE COLLEY MURDER THIS IS A TREND AS JUVENILE VIOLENCE SOARS AND STATES FEEL HAMSTRUNG BY JUVENILE JUSTICE LAWS ENACTED WHEN JOY RIDING OR SHOPLIFTING WAS THE LIKELY CRIME MORE STATES ARE DROPPING THE AGE OF MAJORITY FOR VIOLENT CRIMES YOUTHS AS YOUNG AS 15 OR 16 ARE ROUTINELY TRIED AS ADULTS NOWADAYS JUDGES AND JURIES RECOGNIZE THAT IF THEY GIVE VIOLENT YOUTHS OVER TO THE JUVENILE COURTS THEY ALMOST CERTAINLY ARE SENDING THEM BACK INTO SOCIETY TO ROB OR RAPE OR KILL AGAIN THE FLORIDA LEGISLATURE IS CONSIDERING HOLDING A SPECIAL SESSION ON JUVENILE VIOLENCE NEXT MONTH TO RETHINK THE STATE'S JUVENILE JUSTICE LAWS IT WOULD DO WELL TO LOOK TO COLORADO WHERE GOVERNOR ROY ROMER JUST SIGNED INTO LAW A RADICAL REFORM OF THE JUVENILE JUSTICE SYSTEM THE LAWS SPEED UP THE JUVENILE COURT PROCESS CREATE A SEPARATE TOUGH PRISON SYSTEM FOR JUVENILE OFFENDERS AND MAKE PUBLIC THE NAMES AND RECORDS OF JUVENILES ARRESTED FOR VIOLENT CRIMES UPON LEARNING OF THE ARRESTS OF THE FOUR BOYS LAST WEEK MR COLLEY'S MOTHER BRENDA ARMITAGE HAD THIS TO SAY FROM HER HOME IN SHIPLEY ENGLAND THE ONLY REASON I WANT THEM CAUGHT IS SO THAT THEY CAN'T KILL ANYBODY ELSE AND NOBODY ELSE CAN GO THROUGH WHAT WE'RE GOING THROUGH FOR NOW THAT'S NOT LIKELY 9310110008 931011 MARKETING & MEDIA INTERNATIONAL FAMILY OFFERS TO PURCHASE NOSTALGIA NETWORK VIRGINIA BEACH VA INTERNATIONAL FAMILY ENTERTAINMENT INC THE MEDIA COMPANY FOUNDED BY RELIGIOUS BROADCASTER PAT ROBERTSON HAS OFFERED TO BUY NOSTALGIA NETWORK INC THE CABLE CHANNEL FOR 296 MILLION IN CASH AND STOCK NOSTALGIA BASED IN LOS ANGELES SPECIALIZES IN CABLE TELEVISION PROGRAMMING AIMED AT FAMILIES AND HAS 15 MILLION SUBSCRIBERS INTERNATIONAL FAMILY HAS 574 MILLION SUBSCRIBERS AND OWNS AND OPERATES THE FAMILY CHANNEL CABLE NETWORK INTERNATIONAL FAMILY PROPOSED TO EXCHANGE 150 CASH AND 50 CENTS IN COMMON STOCK FOR EACH NOSTALGIA NETWORK COMMON SHARE EACH SHARE OF NOSTALGIA PREFERRED WOULD RECEIVE 150 CASH AND 50 IN COMMON STOCK A NOSTALGIA SPOKESMAN SAID THERE ARE 144 MILLION COMMON SHARES OUTSTANDING AND ABOUT 3875 PREFERRED SHARES ABOUT 29 OF NOSTALGIA IS OWNED BY CONCEPT COMMUNICATIONS INC WHICH IS REPORTEDLY AN AFFILIATE OF THE UNIFICATION CHURCH AND HAS BEEN SEEKING TO INCREASE ITS SHARE IN THE COMPANY A NOSTALGIA SPOKESMAN SAID THE BOARD MET ON FRIDAY TO CONSIDER CONCEPT COMMUNICATIONS' PROPOSED ACQUISITION OF ONE MILLION SHARES OF NOSTALGIA COMMON AT 2 PER SHARE SUBJECT TO THE REMOVAL OF MICHAEL C MARCOVSKY NOSTALGIA'S CHAIRMAN FROM ALL OFFICES LIBERTY MEDIA INC THE COMPANY CONTROLLED BY CABLE BARON JOHN MALONE PRESIDENT AND CHIEF EXECUTIVE OF TELECOMMUNICATIONS INC OWNS ABOUT A 15 SHARE IN THE FAMILY CHANNEL INTERNATIONAL FAMILY SAID IT HAS THE SUPPORT OF TIGER COMMUNICATIONS CO LP WHICH OWNS ABOUT 27 OF NOSTALGIA'S COMMON ON A FULLY DILUTED BASIS 9310110007 931011 FOREIGN EXCHANGE CANADIAN DOLLAR REMAINS VULNERABLE DESPITE RECENT REBOUND PLAYERS SAY BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK DESPITE ITS REBOUND LAST WEEK THE CANADIAN DOLLAR FACES MORE TROUBLES IN THE WEEKS AHEAD FOREIGNEXCHANGE MARKET PLAYERS SAY ALTHOUGH ECONOMIC FUNDAMENTALS BODE WELL FOR THE CURRENCY OVER THE MEDIUM TERM ANXIETY ABOUT CANADA'S FEDERAL ELECTIONS ON OCT 25 COULD COST THE CURRENCY ITS LATEST GAINS PLUS ANOTHER US CENT THEY SAY THE WORST CASE POSTELECTION PARALYSIS IN A MINORITY GOVERNMENT COULD DRIVE THE US DOLLAR TO CANADIAN 139 BY YEAREND ADDS ONE TRADER AT A CANADIAN BANK POLITICAL UNCERTAINTY PROVINCIAL CREDIT WORRIES AND LOOMING FEDERAL BUDGET SHORTFALLS HAVE PUSHED DOWN THE CANADIAN CURRENCY 37 AGAINST THE US CURRENCY SINCE AUGUST LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT C13307 DOWN FROM C13365 THURSDAY AND OFF THE HIGH OF C13427 AT THE BEGINNING OF THE WEEK THE DOLLAR ALSO CLOSED AT 16025 MARKS DOWN FROM 16223 MARKS THURSDAY AND AT 10590 YEN UP FROM 10495 YEN THURSDAY DISAPPOINTMENT THAT AUGUST US NONFARM PAYROLLS WEREN'T REVISED UPWARD HURT THE DOLLAR AGAINST THE MARK WHILE A TREASURY OFFICIAL'S COMMENT THAT EXCHANGE RATES SHOULDN'T BE USED TO SHRINK THE US TRADE GAP LIFTED THE DOLLAR AGAINST THE YEN TOKYO'S FINANCIAL MARKETS WERE CLOSED MONDAY FOR A PUBLIC HOLIDAY THE WORSTCASE CANADIAN SCENARIO MARKET PLAYERS SAY IS A MINORITY GOVERNMENT BY THE OPPOSITION LIBERAL PARTY THAT PROVES INCAPABLE OF MUSTERING THE VOTES TO CARRY OUT A COHERENT ECONOMIC POLICY AN OPINION POLL ON FRIDAY GAVE THE LIBERALS A LEAD OF 37 OF DECIDED VOTERS TO 22 FOR THE RULING PROGRESSIVE CONSERVATIVE PARTY ANGUS REID GROUP WHICH CONDUCTED THE SURVEY SAID IT WAS TOUCH AND GO WHETHER THE LIBERALS WOULD WIN A MAJORITY IN THE HOUSE OF COMMONS AN OUTRIGHT LIBERAL VICTORY ON THE OTHER HAND IS PROBABLY PRICED INTO THE CANADAUS EXCHANGE RATE ANALYSTS SAY IN FACT MARKET PLAYERS MAY HAVE OVERREACTED TO THE LIBERALS' GAINS IN OPINION POLLS THE PROSPECT OF A LIBERAL VICTORY ALARMS CURRENCY PLAYERS BECAUSE THE PARTY HAS SAID IT WOULD TOLERATE A LARGER BUDGET DEFICIT THAN WOULD THE CONSERVATIVES IN ORDER TO SPUR ECONOMIC GROWTH THE CONSERVATIVES SAY THEY WILL CUT THE FEDERAL DEFICIT TO ZERO FROM THE CURRENT 5 OF GROSS DOMESTIC PRODUCT OR TOTAL VALUE OF GOODS AND SERVICES WITHIN FIVE YEARS THE LIBERALS PROPOSE TO CUT THE DEFICIT TO 3 OF GDP WITHIN THREE YEARS BOTH PARTIES ARE PROBABLY BEING OPTIMISTIC ANALYSTS SAY THE GOVERNMENT IS ALREADY FALLING BEHIND IN THIS YEAR'S PLANNED DEFICIT REDUCTIONANOTHER NEWS ITEM THAT POUNDED THE CURRENCY IN LATE SEPTEMBER DEFICITS WILL BE HUGE UNDER BOTH PARTIES AND THERE'S NOT MUCH OF A DIFFERENCE BETWEEN THEM SAYS CARL WEINBERG CHIEF ECONOMIST AT HIGH FREQUENCY ECONOMICS A CONSULTING FIRM BUDGET TROUBLES COULD GENERATE SOME SLIGHT NEGATIVE SURPRISES FOR THE CURRENCY MARKETS SAYS ANITA LAURIA ECONOMIST AT SALOMON BROTHERS INC IF THE ELECTION PRODUCES A MAJORITY GOVERNMENT CANADA'S ECONOMIC FUNDAMENTALS SHOULD PULL THE CURRENCY OUT OF ITS DOLDRUMS ANALYSTS BELIEVE CANADA'S CURRENT ACCOUNT DEFICIT WHICH STOOD AT C277 BILLION LAST YEAR IS PROJECTED TO SHRINK TO C215 BILLION THIS YEAR ACCORDING TO A SALOMON BROTHERS FORECAST EXPORTS ROSE AT AN ANNUAL 51 PACE IN THE FIRST HALF OF 1993 REAL INVESTMENT IN MACHINERY AND EQUIPMENT ROSE AT AN ANNUAL PACE OF 66 DURING THE SAME PERIOD AND QUARTERLY GDP GROWTH ON AN ANNUAL BASIS AVERAGED 35 IN THE FIRST HALF COMPARED WITH 07 IN 1992 AND WITH POLITICAL WORRIES RESOLVED INTERNATIONAL INVESTORS WILL AGAIN RETURN TO CANADIAN BONDS INFLATION STANDS AT ONLY 17 YET CANADA'S 10YEAR BOND YIELDS 15 POINTS MORE THAN ITS US TREASURY COUNTERPART 9310110006 931011 PEOPLE PATTERNS BY DIANE CRISPELL OF AMERICAN DEMOGRAPHICS MAGAZINE THE TOTAL NUMBER OF US HOUSEHOLDS GREW SLIGHTLY LESS THAN 1 IN 1992 MARRIED COUPLES REMAINED IN THE MAJORITY WHILE HOUSEHOLDS HEADED BY UNMARRIED WOMEN GAINED MORE GROUND THAN THOSE HEADED BY MEN BETWEEN MARCH 1992 AND MARCH 1993 THE NUMBER OF HOUSEHOLDS ROSE TO 964 MILLION FROM 957 MILLION ACCORDING TO CENSUS BUREAU SURVEY DATA SINCE 1990 HOUSEHOLDS HAVE INCREASED A LITTLE MORE THAN 3 FIFTYFIVE PERCENT OF HOUSEHOLDS ARE HEADED BY MARRIED COUPLES BETWEEN 1990 AND 1992 THE NUMBER OF COUPLES WITHOUT CHILDREN UNDER AGE 18 ROSE FASTER THAN AVERAGE WHILE THE NUMBER WITH YOUNG CHILDREN DECLINED BETWEEN 1992 AND 1993 HOWEVER BOTH GROUPS INCREASED TWICE AS FAST AS ALL HOUSEHOLDS BY ABOUT 14 THE OTHER 45 OF HOUSEHOLDS ARE HEADED BY MEN AND WOMEN WITHOUT SPOUSES PRESENT FAMILIES HEADED BY SINGLE FATHERS HAD BEEN INCREASING FASTER THAN THOSE HEADED BY SINGLE MOTHERS FOR SEVERAL YEARS BUT THAT WASN'T TRUE IN 1992 SINGLEPARENT FAMILIES HEADED BY WOMEN WERE UP 3 WHILE THOSE HEADED BY MEN GREW 24 SINGLE MOTHERS OUTNUMBERED SINGLE FATHERS BY MORE THAN 5 TO 1 AT 82 MILLION VS 15 MILLION AFTER INCREASING FOR MANY YEARS THE NUMBER OF PEOPLE LIVING ALONE DECLINED FOR BOTH SEXES LAST YEAR TO 236 MILLION FROM 24 MILLION IN 1992 THE NUMBER OF MEN ON THEIR OWN FELL NEARLY 2 COMPARED WITH JUST MORE THAN 1 FOR WOMEN THE NUMBER OF HOUSEHOLDS WITH TWO OR MORE PEOPLE UNRELATED TO ONE ANOTHER INCREASED LESS THAN 2 IN 1992 THE NUMBER OF MEN HEADING THESE KINDS OF NONFAMILY HOUSEHOLDS REMAINED STABLE IN 1992 WHILE THE NUMBER OF WOMEN WHO HEADED SUCH NONFAMILIES ROSE MORE THAN 4 THIS GROUP IS RELATIVELY SMALL AT 46 MILLION IT INCLUDES UNMARRIED AND GAY COUPLES AS WELL AS ROOMMATES THE NUMBER OF HOUSEHOLDS HEADED BY MEN WITHOUT SPOUSES DECLINED 1 BETWEEN 1992 AND 1993 TO 153 MILLION OR 16 OF ALL HOUSEHOLDS THE NUMBER HEADED BY WOMEN INCREASED BY 06 TO 279 MILLION 29 OF HOUSEHOLDS DATA INDICATING THAT NEW MOTHERS ARE LESS EDUCATED THAN THEY USED TO BE AREN'T ENTIRELY ACCURATE BIRTH STATISTICS GATHERED OVER TIME AREN'T ALWAYS COMPARABLE BECAUSE INFORMATION COLLECTED ON BIRTH CERTIFICATES VARIES FROM STATE TO STATE AND THE NUMBER OF STATES REPORTING CERTAIN DATA CHANGES YEAR TO YEAR FOR EXAMPLE CALIFORNIA AND TEXAS DIDN'T PROVIDE EDUCATIONAL INFORMATION ABOUT MOTHERS UNTIL 1989 THE TWO STATES HAVE MANY IMMIGRANTS WHO ARE LESS LIKELY THAN AVERAGE TO HAVE A HIGHSCHOOL EDUCATION AS A RESULT THE REPORTED NATIONAL SHARE OF NEW MOTHERS WITH A HIGHSCHOOL EDUCATION DROPPED TO 77 IN 1989 FROM 80 IN 1988 ACCORDING TO THE NATIONAL CENTER FOR HEALTH STATISTICS THE SHARE FELL AGAIN IN 1991 TO 76 THAT MAY INDICATE A TRUE DECLINE IN THE EDUCATIONAL STATUS OF NEW MOTHERS THE SHARE OF OLDER NEW MOTHERS WITH A COLLEGE EDUCATION IS EVEN HIGHER THIRTYFIVE PERCENT OF WOMEN AGED 30 OR MORE WHO HAD BABIES IN 1988 HAD AT LEAST FOUR YEARS OF COLLEGE EDUCATION THIS SHARE FELL TO 33 WHEN THE CALIFORNIA AND TEXAS NUMBERS WERE FIRST INCLUDED IN 1989 THEN ROSE TO 34 IN 1991 REVERSING A LONGTERM TREND THE YOUNGEST WOMEN TODAY ARE BETTER EDUCATED THAN THEIR MALE PEERS TWENTYFOUR PERCENT OF WOMEN 35 AND OLDER HAVE COLLEGE DEGREES COMPARED WITH 31 OF MEN IN THE SAME AGE GROUP ACCORDING TO NEWLY RELEASED CENSUS BUREAU SURVEY DATA THE GAP IS LARGEST AMONG THE ELDERLY AND NARROWS WITH EACH SUCCESSIVELY YOUNGER GROUP TWELVE PERCENT OF WOMEN AGED 65 OR OLDER ARE COLLEGE GRADUATES VS 19 OF ELDERLY MEN THE GAP IS SMALLER FOR AGES 35 TO 44 WITH 36 OF MEN AND 34 OF WOMEN HAVING DEGREES AMONG THE YOUNGEST GENERATION THE TABLES HAVE TURNED THIRTYTWO PERCENT OF WOMEN 25 TO 34 HAVE COLLEGE DEGREES VS 31 OF MEN THE REASON IS THAT YOUNGER WOMEN ARE MORE LIKELY THAN YOUNGER MEN TO HAVE ASSOCIATE'S DEGREES 9 VS 7 MEN ARE STILL MORE LIKELY THAN WOMEN TO HAVE ADVANCED DEGREES BUT ONLY 16 OF ALL YOUNG ADULTS WITH COLLEGE DIPLOMAS HAVE A MASTER'S DEGREE OR HIGHER AND WOMEN 25 TO 34 ARE SLIGHTLY MORE LIKELY THAN MEN TO HAVE THE MOST COMMON COLLEGE DEGREE A BACHELOR'S RENTERS IN THE CHICAGO NEW YORK AND NORTHERN NEW JERSEY METROPOLITAN AREAS REPORT MORE PROBLEMS WITH THEIR NEIGHBORHOODS THAN DO HOMEOWNERS ACCORDING TO THE HOUSING DEPARTMENT'S 1991 AMERICAN HOUSING SURVEY BUT IN HOUSTON RENTERS AND OWNERS ARE EQUALLY LIKELY TO HAVE COMPLAINTS RENTERS IN ALL AREAS CITE CRIME AND PEOPLE ISSUES AS A TOP CONCERN WITH OWNERS MORE LIKELY TO COMPLAIN ABOUT THEIR NEIGHBORS AMERICANS HAVE MIXED FEELINGS ABOUT HOW TO BUY CARS A SURVEY CONDUCTED BY DOHRING GLENDALE CALIF AND AUTOMOTIVE NEWS FOUND THAT 49 OF AMERICANS THINK THE NEGOTIATION PROCESS AT DEALERSHIPS COULD BE IMPROVED 20 THINK IT SHOULD STAY THE SAME AND 28 THINK IT SHOULD BE DONE AWAY WITH ALTOGETHER NEW POPULATION ESTIMATES FROM CLARITAS/NPDC A MARKETINGINFORMATION COMPANY BASED IN ALEXANDRIA VA SHOW THAT THE ADJACENT CALIFORNIA METROPOLITAN AREAS OF RIVERSIDE AND LOS ANGELES GAINED MORE PEOPLE BETWEEN 1990 AND 1993 THAN ANY OTHER METROS RIVERSIDE GAINED 355000 PEOPLE AND LOS ANGELES 278000 RIVERSIDE WAS ALSO THE SECOND FASTESTGROWING AREA GROWING 14 IN THREE YEARS LAS VEGAS UP 17 RANKED FIRST 9310110005 931011 DAIMLERBENZ TATA DISCUSS ASSEMBLING AUTOMOBILES IN INDIA NEW DELHI GERMANY'S DAIMLERBENZ AG AND INDIA'S TATA ENGINEERING & LOCOMOTIVE LTD ARE DISCUSSING AN AGREEMENT UNDER WHICH MERCEDESBENZ CARS WOULD BE ASSEMBLED IN INDIA TELCO OFFICIALS SAID THE TWO COMPANIES MADE A PRESENTATION TO THE INDIAN GOVERNMENT FRIDAY AND TELCO OFFICIALS SAID THERE ARE ONLY A FEW DETAILS TO TIE UP BEFORE AN ANNOUNCEMENT CAN BE MADE THE GERMANS ARE LIKELY TO OWN A MAJORITY OF THE JOINT VENTURE A SENIOR TELCO OFFICIAL SAID TELCO MAKES TRUCKS CARS AND RELATED ENGINEERING EQUIPMENT IT AIMS TO DIVERSIFY INTO WHAT ITS CHAIRMAN RATAN TATA CALLS A TOTAL TRANSPORTATION COMPANY EMBRACING CHARTER TRUCK FLEETS SPECIALIZED CONTAINER TRUCKS ELECTRICAL VEHICLES MASS TRANSIT SYSTEMS AND HELICOPTERS MR TATA ALSO HAS BEGUN TO EMPHASIZE GLOBAL COMPETITIVENESS AS A CRITERION FOR TELCO'S NEW BUSINESSES TELCO AND DAIMLERBENZ AREN'T STRANGERS IN THE 1950S THEY COLLABORATED IN MAKING HEAVYDUTY TRUCKS AT TELCO'S PUNE PLANT THANKS PARTLY TO THE TECHNOLOGY OBTAINED FROM THAT COOPERATION TELCO REMAINS INDIA'S MARKET LEADER IN COMMERCIAL VEHICLES DAIMLERBENZ OWNS A 12 STAKE IN TELCO AND EARLIER THIS YEAR TELCO SAID IT WOULD MARKET IMPORTED MERCEDESBENZ CARS IN INDIA A FINAL DECISION ON THE CARASSEMBLY PROJECT IS TO BE MADE AFTER THE COMPLETION OF A STUDY OFFICIALS EXPECT THAT STUDY TO DEMONSTRATE INDIA'S ADVANTAGES IN LOWCOST PRODUCTION AND TO CONFIRM THAT ENOUGH OF THE CARS COULD BE SOLD IN INDIA AND NEARBY EXPORT MARKETS TO MAKE THE PROJECT WORTHWHILE OUR INTENTION IS TO MAKE A MERCEDESBENZ FOR EXPORT NO DIFFERENT FROM A MERCEDES BOUGHT IN GERMANY A TELCO OFFICIAL SAID INCREASING USE OF LOCALLY MADE PARTS WOULD BE AN INTEGRAL PART OF THE PROJECT 9310110004 931011 FAIRFAX TO COMPENSATE KERRY PACKER'S FIRM ROLE IN TAKEOVER SPECIAL TO THE WALL STREET JOURNAL SYDNEY AUSTRALIA JOHN FAIRFAX HOLDINGS LTD AN AUSTRALIAN NEWSPAPER PUBLISHING COMPANY 25OWNED BY CANADIAN BUSINESSMAN CONRAD BLACK SAID IT CAME TO AN AGREEMENT TO COMPENSATE AUSTRALIAN BUSINESSMAN KERRY PACKER FOR HIS ROLE IN MR BLACK'S TAKEOVER OF JOHN FAIRFAX MR BLACK AND MR PACKER WERE ORIGINALLY PART OF A CONSORTIUM BIDDING FOR FAIRFAX BUT MR PACKER PULLED OUT BECAUSE OF A POSSIBLE BREACH OF AUSTRALIAN BROADCASTING REGULATIONS FAIRFAX ALSO SAID THAT NINE TELEVISION LTD A UNIT OF NINE NETWORK AUSTRALIA LTD IN WHICH MR PACKER HAS A MAJORITY STAKE SEPARATELY AGREED WITH FAIRFAX TO SUBSCRIBE FOR 20 MILLION ORDINARY SHARES IN FAIRFAX AT A CASH PRICE OF A3 A SHARE AS A RESULT OF THESE TRANSACTIONS FAIRFAX WILL HAVE DISCHARGED ITS MONETARY OBLIGATION TO CONSOLIDATED PRESS WITHOUT ANY NET CASH OUTLAY WHILE MINIMIZING THE AMOUNT OF NEW EQUITY ISSUED TO DO SO THE NEWSPAPER PUBLISHER SAID A SPOKESMAN FOR FAIRFAX SAID THAT THE AGREEMENT INCREASED MR PACKER'S STAKE IN FAIRFAX TO ABOUT 128 EARLIER IN THE YEAR MR PACKER CONFIRMED HE HELD 105 OF THE COMPANY MR BLACK CURRENTLY HOLDS 25 OF FAIRFAX VIA HIS BRITISH COMPANY TELEGRAPH PLC HE IS PREVENTED FROM INCREASING HIS STAKE BY AUSTRALIA'S FOREIGN INVESTMENT REGULATIONS 9310110003 931011 CREDIT MARKETS JOB REPORT SPURS RISE IN BONDS TRADERS STRESS DETAILS INDICATING WEAKNESS REMAINS IN ECONOMY BY THOMAS T VOGEL JR AND JEFFREY TAYLOR STAFF REPORTERS OF THE WALL STREET JOURNAL LONGTERM BOND YIELDS ARE LIKELY TO MEANDER IN A NARROW RANGE FOR THE NEXT MONTH OR TWO BECAUSE OF CONTINUING ECONOMIC SLUGGISHNESS ANALYSTS PREDICT BUT THAT DOESN'T MEAN THE BOND MARKET WON'T HAVE SOME CRAZY DAYS TAKE FRIDAY FOR EXAMPLE AN EMPLOYMENT REPORT THAT DIDN'T SEEM TO CONTAIN ANY SURPRISES SENT THE CREDIT MARKETS INTO PAROXYSMS OF BUYING AS TRADERS FOCUSED ON DETAILS WITHIN THE REPORT THAT AREN'T USUALLY SCRUTINIZED BY DAY'S END THE 30YEAR TREASURY BOND YIELD HAD DROPPED TO 592 FROM 601 ON THURSDAY HITTING THE LOWEST LEVEL IN MORE THAN THREE WEEKS THE BOND'S PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF THE YIELD JUMPED MORE THAN 1 1/4 POINTS OR MORE THAN 1250 FOR A BOND WITH A 1000 FACE VALUE TO 104 16/32 MINUTES BEFORE THE SEPTEMBER EMPLOYMENT REPORT WAS RELEASED ON FRIDAY PRICES OF BOND FUTURES CONTRACTS AT THE CHICAGO BOARD OF TRADE ROSE MORE THAN 5/8 POINT A FUTURES CONTRACT IS AN AGREEMENT TO BUY OR SELL A GIVEN AMOUNT OF A SECURITY AT A SET PRICE WITHIN A SPECIFIED PERIOD SOME TRADERS BLAMED THE SUDDEN PRICE RALLY ON A BIG BOND DEALER'S PRECAUTIONARY LIQUIDATION OF A SHORT POSITION A SHORT POSITION EXISTS WHEN A DEALER SELLS A BORROWED SECURITY IN HOPES OF BUYING IT BACK LATER AT A LOWER PRICE AND POCKETING THE DIFFERENCE TRADES OF ANY MAGNITUDE CAN HAVE A STRONG IMPACT ON PRICES IN THE ILLIQUID MARKETS THAT TEND TO PRECEDE MAJOR GOVERNMENT REPORTS IN ADDITION SPECULATION SWIRLED AMONG THE TRADERS IN THE CBOT'S BIG TREASURYBOND FUTURES PIT THAT SOME TRADERS MAY HAVE HAD EARLY KNOWLEDGE OF THE CONTENTS OF THE REPORT WHICH IS RELEASED MONTHLY BY THE LABOR DEPARTMENT MOVEMENTS OF THIS MAGNITUDE HAPPEN OFTEN IN OUR MARKET BUT THIS ONE CAME RIGHT BEFORE THE ANNOUNCEMENT OF A GOVERNMENT REPORT SAID DAVID PROSPERI A CBOT SPOKESMAN OUR OFFICE OF INVESTIGATIONS AND AUDITS IS LOOKING INTO IT TO BE SURE NOTHING UNTOWARD HAPPENED MR PROSPERI SAID EXCHANGE INVESTIGATORS WOULD REVIEW TIME AND SALES DATA TO DETERMINE WHERE THE FLOOD OF BUYING WAS INITIATED RELEASE OF THE REPORT TO NEWSSERVICE REPORTERS BEGINS ABOUT 8 AM EASTERN TIME AND THE DATA ARE EMBARGOED UNTIL 830 AM A LABOR DEPARTMENT SPOKESMAN SAID OFFICIALS WERE LOOKING INTO ALLEGATIONS OF A LEAK OF THE REPORT ALTHOUGH THERE WAS NO EVIDENCE SUCH A LEAK HAD OCCURRED THE LABOR DEPARTMENT REPORTED THAT PAYROLLS ROSE 156000 IN SEPTEMBER WITH NATIONAL UNEMPLOYMENT STANDING UNCHANGED AT 67 NOT FAR FROM THE EXPECTATIONS OF MANY WALL STREET ECONOMISTS BUT BOND INVESTORS FOCUSED ON OTHER DATA WITHIN THE REPORT IN SEARCH OF SIGNS OF ECONOMIC WEAKNESS NOTABLY THE DROP IN THE AVERAGE WORKWEEK FOR NONFARM WORKERS TO 344 HOURS FROM 347 HOURS IN AUGUST THEY ALSO SEIZED UPON THE LACK OF AN UPWARD REVISION TO THE AUGUST PAYROLL FIGURE WHICH LEAVES THE AVERAGE MONTHLY GAIN FOR THE PAST TWO MONTHS AT A PALTRY 58000 IN A VIGOROUS ECONOMY JOBS TYPICALLY ARE CREATED AT THE RATE OF ABOUT 200000 TO 250000 A MONTH A WEAK ECONOMY BUOYS BOND PRICES BECAUSE IT LESSENS THE CHANCE THAT INFLATION WILL UNDERMINE THE BUYING POWER OF A FIXED INCOME THE MARKET RALLIED MORE BECAUSE OF RELIEF THAT THE ECONOMY WAS NOT PICKING UP SPEED THAN BECAUSE THE NUMBER INDICATED THAT THE ECONOMY WAS WEAKENING SAYS DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC A UNIT OF CHASE MANHATTAN CORP BUT YOU CAN'T ARGUE THAT THE ECONOMY IS ACCELERATING HE SAID IT JUST CONTINUES TO MUDDLE ALONG ACCORDING TO MR FINE THE ECONOMY IS LIKELY TO PICK UP IN THE FOURTH QUARTER BUT GROWTH WILL BE NOTHING SPECTACULAR FOR A NUMBER OF REASONS INCLUDING THE IMPACT OF HIGHER TAXES AND PRESIDENT CLINTON'S PROPOSED OVERHAUL OF THE HEALTHCARE SYSTEM STILL DAMPING ECONOMIC GROWTH ARE CORPORATE RESTRUCTURING PROGRAMS DEFENSE SPENDING CUTBACKS WEAKNESS IN COMMERCIAL REAL ESTATE AND THE RELUCTANCE OF BANKS TO EXPAND THEIR COMMITMENTS TO LEND TO SMALL AND MEDIUMSIZED BUSINESSES HE SAYS EVEN IF THE ECONOMY SHOWS SIGNS OF ACCELERATION IN THE FOURTH QUARTER DUE TO PICKUPS IN THE AUTO INDUSTRY I DON'T THINK IT WILL BE SUSTAINABLE SAYS MR FINE BUT THE STRONG REACTION TO AN UNSURPRISING EMPLOYMENT REPORT SHOWS THAT INVESTORS ARE COUNTING ON CONTINUED GOOD NEWS ON THE INFLATION FRONT SAYS MR FINE THOSE HIGH HOPES WILL BE TESTED THURSDAY AND FRIDAY WHEN INFLATION DATA ARRIVE IN THE FORM OF THE GOVERNMENT'S PRODUCER PRICE INDEX AND CONSUMER PRICE INDEX FRIDAY'S REACTION TO THE EMPLOYMENT REPORT TELLS ME THAT INVESTORS ARE COUNTING ON A GOOD CPI REPORT SHOWING ABOUT A 01 MONTHLY GAIN IF THE INFLATION RATE IS HIGHER SAYS MR FINE IT COULD RESULT IN A SELLOFF THAT WOULD PUSH LONGTERM BOND YIELDS ABOVE 6 AGAIN IF INFLATION IS LESS THE MARKET MAY TEST THE LOW END OF THE RANGE WHICH IS 575 THERE IS ONE STRONG SIGN THAT BOND YIELDS COULD BE CLOSE TO BOTTOMING OUT SAYS DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS INC HE POINTS TO THE RECENT DROP IN THE DOW JONES UTILITY AVERAGE THIS AVERAGE WHICH MEASURES THE STOCKPRICE CHANGES OF 11 ELECTRIC UTILITIES AND FOUR NATURAL GAS COMPANIES TENDS TO ANTICIPATE MAJOR CHANGES IN INTERESTRATE CYCLES ACCORDING TO SOME ANALYSTS UTILITIES TEND TO PAY HIGH DIVIDENDS AND ARE OFTEN ATTRACTIVE TO THE KIND OF CONSERVATIVE YIELDORIENTED INVESTORS WHO ALSO BUY BONDS WHEN INVESTORS EXPECT BOND YIELDS TO RISE THEY PUSH DOWN THE PRICES OF UTILITY STOCKS BETTING THAT A RISE IN BOND YIELDS WILL MAKE THESE STOCKS LESS VALUABLE FROM MIDFEBRUARY THROUGH MIDSEPTEMBER THE UTILITY AVERAGE ROSE TO 25646 FROM 23216 AS LONGTERM YIELDS PLUNGED BUT SINCE MIDSEPTEMBER THE UTILITY AVERAGE HAS DROPPED NEARLY 13 POINTS TO 24380 ON FRIDAY US TREASURY YIELDS PLUNGED FRIDAY IN RESPONSE TO A MODERATE MONTHLY EMPLOYMENT REPORT THE PRICE SURGE WAS PARTICULARLY STRONG AMONG LONGER MATURITIES WITH THE 30YEAR BOND JUMPING MORE THAN 1 1/4 POINTS SHORTERTERM SECURITIES SUCH AS THE THREEYEAR NOTE ROSE JUST 1/4 POINT MEANWHILE MARVEL HOLDINGS INC PULLED A 150 MILLION OFFERING OF JUNK BONDS AFTER FAILING TO ATTRACT ENOUGH INVESTORS EVEN AFTER BOOSTING THE PROSPECTIVE YIELD AS HIGH AS 125 SAID ONE PERSON IN THE MARKET RONALD PERELMAN IS THE CHAIRMAN OF PUBLICLY TRADED MARVEL ENTERTAINMENT GROUP INC IN WHICH MARVEL HOLDINGS OWNS SHARES THE BOND OFFERING WAS TO HAVE BEEN UNDERWRITTEN BY BEAR STEARNS & CO WHICH DIDN'T RETURN CALLS FRIDAY AT THE BEGINNING OF THE WEEK THE OFFERING OF FIVEYEAR ZERO COUPON NOTES WAS EXPECTED TO COME WITH A YIELD OF 115 WHICH LATER WAS BOOSTED TO 125 ZERO COUPONS ARE SOLD AT A DEEP DISCOUNT TO FACE VALUE AND PAY NO INTEREST WHEN INVESTORS ASKED FOR A 1275 YIELD THE COMPANY DECIDED TO PULL THE OFFERING ACCORDING TO A COMPANY OFFICIAL IN THE US TREASURY MARKET A LOT OF CASH MOVED OFF THE SIDELINES IN DIRECT REACTION TO THE EMPLOYMENT REPORT MUCH OF IT FROM PORTFOLIO MANAGERS WHO HAVE BEEN BUILDING CASH SINCE MIDSEPTEMBER SAID WILLIAM SULLIVAN SENIOR VICE PRESIDENT AND DIRECTOR OF MONEY MARKET RESEARCH AT DEAN WITTER REYNOLDS INC PORTFOLIO MANAGERS HAVE BEEN UNDER PRESSURE TO EXTEND DURATIONS AND WILLINGLY DID SO ONCE IT WAS APPARENT THERE WOULD BE NO IMMEDIATE UPWARD PRESSURE ON INTEREST RATES DURATION IS A MEASURE OF PRICE SENSITIVITY TO INTEREST RATE CHANGES BASED ON THE CASH FLOW OF A BOND OR PORTFOLIO THE PUBLIC SECURITIES ASSOCIATION HAS RECOMMENDED THAT THE US GOVERNMENT SECURITIES MARKET BE CLOSED TODAY IN OBSERVANCE OF THE COLUMBUS DAY HOLIDAY JACQUELINE DOHERTY CONTRIBUTED TO THIS ARTICLE 9310110002 931011 WHAT'S NEWS BUSINESS AND FINANCE HOECHST CELANESE AGREED TO BUY 51 OF COPLEY PHARMACEUTICAL FOR 546 MILLION MARKING THE LATEST CONSOLIDATION IN THE HEALTHCARE INDUSTRY WHICH HAS BEEN POSITIONING ITSELF TO PREPARE FOR THE CLINTON HEALTH PLAN THE DEAL IS STRIKING FOR THE HIGH PRICE HOECHST IS PAYING FOR ITS STAKE IN THE GENERIC AND OVERTHECOUNTER DRUG MAKER WHICH HAD SALES OF JUST 52 MILLION IN ITS LATEST FISCAL YEAR PARAMOUNT'S BOARD IS EXPECTED TO AUTHORIZE ITS ADVISERS TO SEEK MORE INFORMATION FROM QVC NETWORK ABOUT QVC'S 95 BILLION BID FOR THE ENTERTAINMENT AND PUBLISHING CONCERN BUT THE BOARD ISN'T EXPECTED TO APPROVE THE START OF FORMAL MERGER NEGOTIATIONS GM'S US VEHICLE OPERATIONS ARE HEADING FOR A 2 BILLION LOSS THIS YEAR LARGELY BECAUSE OF UNCOMPETITIVE LABOR COSTS COMPANY OFFICIALS HAVE TOLD UAW BARGAINERS GM HAS ASKED THE UNION FOR RELIEF ON FUTURE PENSION COSTS LAYOFF BENEFITS AND WAGES IN THE AUTO MAKER'S PARTS OPERATIONS THE ECONOMY CONTINUED ITS SLOW EXPANSION IN SEPTEMBER EMPLOYERS ADDED 156000 JOBS ALTHOUGH THE JOBLESS RATE WAS UNCHANGED AT 67 DELTA AIR LINES' FEES TO TRAVEL AGENTS ARE THE FOCUS OF A FEDERAL INVESTIGATION EXAMINING WHETHER THE PAYMENTS ARE ANTICOMPETITIVE SUN MICROSYSTEMS WILL BEGIN SELLING MICROPROCESSORS TO OTHER COMPUTER AND ELECTRONICS COMPANIES THE WORKSTATION LEADER SEEKS TO HEAD OFF COMPETITION IN CHIPS FROM INTEL AND AN ALLIANCE OF IBM APPLE AND MOTOROLA MARTIN MARIETTA IS NEARING AN AGREEMENT TO PURCHASE GENERAL DYNAMICS' SPACELAUNCH BUSINESS FOR ABOUT 300 MILLION ACCORDING TO PEOPLE FAMILIAR WITH THE NEGOTIATIONS BIG RETAILERS ARE EMERGING AS LEADING OPPONENTS OF CLINTON'S HEALTH PLAN FEARING THE PROPOSED BENEFITS FOR PARTTIME WORKERS WOULD HIT THEIR LABORINTENSIVE INDUSTRY ESPECIALLY HARD BROWNINGFERRIS DROPPED PLANS TO ACQUIRE WESTERN WASTE INDUSTRIES FOR STOCK VALUED AT MORE THAN 400 MILLION THE MOVE IS THE LATEST SIGN THAT MAJOR ENVIRONMENTAL COMPANIES ARE GROWING CAUTIOUS ABOUT BIG INVESTMENTS STOCKBROKER RAFI KHAN IS PRESSING AHEAD WITH HIS CAMPAIGN TO WREST CONTROL OF ICN PHARMACEUTICALS FROM ITS LONGTIME CHAIRMAN MILAN PANIC HEWLETTPACKARD AND TIME WARNER HAVE AGREED TO JOINTLY DEVELOP TECHNOLOGIES FOR USERS OF INTERACTIVETV SERVICES THAT WILL ENABLE THEM TO PRINT OUT INFORMATION FROM TV DELL COMPUTER'S PROBLEMS WITH ITS NOTEBOOK COMPUTER CONTINUED TO WORSEN THE COMPANY ANNOUNCED A RECALL FOR 17000 OF ITS MACHINES BECAUSE THEY ARE PRONE TO OVERHEATING ALCOA'S NET INCOME PLUNGED 36 IN THE THIRD QUARTER TO 288 MILLION AMID A DROP IN SHIPMENTS AND A CONTINUING SLUMP IN ALUMINUM PRICES THE RESULTS WERE A DISAPPOINTMENT TO ANALYSTS STOCKS ROSE SLIGHTLY ON TUMBLING INTEREST RATES THE DOW JONES INDUSTRIALS CLIMBED 111 TO 358474 THE 30YEAR TREASURY BOND'S PRICE JUMPED MORE THAN 1 1/4 POINTS PUSHING ITS YIELD DOWN TO 592 THE DOLLAR WAS MIXED A NEW JAPANESE STOCK INDEX HAS BEEN CREATED AND IT INCLUDES 75 MORE STOCKS THAN THE NIKKEI AVERAGE OF 225 COMPANIES THE GOVERNMENT HOPES THE NIKKEI STOCK INDEX 300 EVENTUALLY WILL ECLIPSE THE SMALLER AVERAGE US SURGICAL'S PLAN TO ANNOUNCE MAJOR COSTCUTTING MOVES THIS WEEK REFLECTS THE COMPANY'S STRUGGLE WITH AN AGGRESSIVE COMPETITOR AND A MARKET WHIPSAWED BY CONCERNS OVER HEALTHCARE COSTS AND HEALTH REFORM BONDS LEHMAN BROTHERS TREASURY INDEX 569206 UP 5580 COMMODITIES OIL 1855 A BARREL UP SIX CENTS DOW JONES FUTURES INDEX 12680 UP 117 SPOT INDEX 11915 UP 077 DOLLAR 10590 YEN UP 095 16025 MARKS OFF 00198 9310110001 931011 THE OUTLOOK AMERICA'S LOW SAVINGS MAY BLIGHT ITS FUTURE BY HENRY F MYERS CHICAGO AT THE RECENT ANNUAL MEETING HERE OF THE NATIONAL ASSOCIATION OF BUSINESS ECONOMISTS TWO MAJOR ADDRESSES MADE CLEAR THE TROUBLE LYING AHEAD IF THE US DOESN'T COME TO GRIPS WITH ITS LOW SAVING RATE AND THE WAY THAT PROBLEM UNDERLIES THE COUNTRY'S TRADE DEFICITS MANY AMERICANS CITE THE TRADE DEFICITS AS MUCH AS ANYTHING ELSE AS PROVING THAT THE US CAN'T COMPETE AGAINST MANY FOREIGN RIVALS AND SHOULD TURN MORE PROTECTIONIST TO PRESERVE ITS OWN INDUSTRY ARE THEY RIGHT NOT ACCORDING TO ROBERT T PARRY PRESIDENT OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO I DO NOT THINK THE TRADE DEFICIT IS DUE TO LOWER WAGES SUPERIOR TECHNOLOGY AND UNFAIR' TRADE PRACTICES ABROAD HE STATED COMPARATIVE WAGE RATES AREN'T THE PROBLEM HE SAID ESPECIALLY IN VIEW OF THE DOLLAR'S DECLINE AGAINST OTHER CURRENCIES SINCE THE MID1980S BETWEEN THE 1985 PEAK IN THE DOLLAR AND 1992 HE EXPLAINED US UNIT LABOR COSTS ROSE AT ONLY 1 PER YEAR WHILE COSTS IN JAPAN FRANCE GERMANY KOREA AND TAIWAN FOR EXAMPLE ALL ROSE AT ROUGHLY 10 ANNUALLY MEANWHILE HE ADDED US PRODUCTIVITY HAS CONTINUED TO KEEP PACE AND EVEN EXCEED THAT IN MUCH OF THE REST OF THE WORLD AND AS FOR TRADE BARRIERS ABROAD MR PARRY NOTED THAT BETWEEN 1981 AND 1987 WHEN THE DEFICIT WAS AT ITS PEAK THE DETERIORATION IN OUR TRADE POSITION WAS PERVASIVE SPREAD UNIFORMLY ACROSS SO WIDE A RANGE OF GOODS THAT ONLY AN UNLIKELY CONSPIRACY COULD HAVE CAUSED SUCH SLIPPAGE HE ADDED THAT THE JAPANESE MARKET HAS BECOME SOMEWHAT MORE OPEN NOT MORE CLOSED AND THAT EVEN IF EXISTING FOREIGN RESTRICTIONS ON US EXPORTS WERE COMPLETELY REMOVED MOST STIMATES SUGGEST WE'D REDUCE OUR TRADE DEFICIT BY ONLY MODEST AMOUNTS SUCCESSFUL PRESSURE TO OPEN UP SPECIFIC FOREIGN MARKETS WOULD TEND MOSTLY TO SHIFT THE LOCATION RATHER HAN THE AMOUNT OF THE TRADE DEFICITS BUT IF AMERICA'S TRADE DEFICITS WHICH INCLUDE INVESTMENT FLOWS CAN'T BE BLAMED ON A SLUMP IN US COMPETITIVENESS WHY DO THEY PERSIST APART FROM THE FACT THAT THE US ECONOMY IS TEMPORARILY STRONGER AND THUS IMPORTING MORE THAN ITS RIVALS THE PROBLEM MR PARRY SAID IS THAT NATIONAL SAVING THE SUM OF PERSONAL AND BUSINESS SAVING MINUS GOVERNMENT DEFICITS LAGS BEHIND INVESTMENT THE SAVINGINVESTMENT IMBALANCE WAS ALSO DEPLORED BY MARTIN FELDSTEIN A HARVARD ECONOMIST AND PRESIDENT OF THE NATIONAL BUREAU OF ECONOMIC RESEARCH A TRADE DEFICIT HE TOLD THE NABE MEETING IS NOT AN INDICATION THAT A NATION HAS LOW PRODUCTIVITY OR LOWQUALITY PRODUCTS IT IS AN INDICATION THAT THE DOMESTIC INVESTMENT RATE IS HIGH RELATIVE TO THE RATE OF SAVING THE BASIC ACCOUNTING IDENTITY HE ADDED IS THAT THE TRADE DEFICIT EQUALS THE EXCESS OF INVESTMENT OVER SAVING WE INEVITABLY HAVE A TRADE DEFICIT IF WE AS A NATION SPEND MORE ON INVESTMENT THAN WE SAVE TO FINANCE THAT INVESTMENT THE TRADE DEFICIT PROVIDES THE CAPITAL TO PAY FOR THE EXTRA INVESTMENT MR FELDSTEIN OBSERVED THAT MEXICO'S TRADE DEFICIT RUNNING MORE THAN 6 OF GROSS DOMESTIC PRODUCT IS A SIGN OF VIGOR REFLECTING THE STRONG RATE OF INVESTMENT IN THE MEXICAN ECONOMY AND THE WILLINGNESS OF FOREIGN INVESTORS TO FINANCE THAT INVESTMENT BY CONTRAST THE US TRADE DEFICIT IS DUE TO A VERY LOW SAVING RATE IN RECENT YEARS MR FELDSTEIN NOTED THE US NET NATIONAL SAVING RATE HAS BEEN AN INCREDIBLY LOW 3 OF GDP WITHOUT A CAPITAL INFLOW NET INVESTMENT WOULD BE LIMITED TO THE SAME 3 OF GDP NOT ENOUGH TO KEEP UP WITH THE GROWTH OF THE LABOR FORCE MOREOVER HE SAID INDUSTRIAL COUNTRIES TEND TO RETURN TO TRADE BALANCE OR NEAR TRADE BALANCE WHILE TEMPORARY CHANGES IN THE NATIONAL SAVING RATES ARE GENERALLY OFFSET BY INTERNATIONAL CAPITAL FLOWS EVEN THE HUGE SUMS NOW SLOSHING AROUND GLOBAL MARKETS WON'T PERMANENTLY BRIDGE AMERICA'S SAVING/INVESTMENT GAP NOTING THAT THE NET SAVING OF A COUNTRY TENDS TO STAY IN THE COUNTRY WHERE IT ORIGINATES MR FELDSTEIN ADDED THAT THE DIFFERENCES IN SAVING RATES AMONG COUNTRIES THAT PERSIST FOR A DECADE OR MORE CAUSE CORRESPONDING CHANGES IN DOMESTIC INVESTMENT SO MR FELDSTEIN CONCLUDED AMERICA'S REAL PROBLEM IN THE 1990S IS NOT THE POSSIBILITY THAT THE CURRENT TRADE DEFICITS WILL GROW BUT RATHER THE RISK THAT THE COMBINATION OF A CONTINUED LOW SAVING RATE AND A SMALL TRADE DEFICIT WILL KEEP INVESTMENT EXCEEDINGLY LOW THE US COULD FINANCE ITS LOW INVESTMENTS IN RECENT YEARS BECAUSE THE COMMERCIALREALESTATE GLUT HAS SLOWED BUILDING BUT MR FELDSTEIN WARNED OF A POSSIBLE CAPITAL SHORTFALL WHEN CONSTRUCTION REBOUNDS MR PARRY PRAISED THE CURRENT PLANS FOR REDUCED FEDERAL BUDGET DEFICITS AS A STEP IN THE RIGHT DIRECTION BECAUSE THEY WILL TEND TO RAISE THE NATIONAL SAVING RATE BY REDUCING GOVERNMENT DISSAVING BUT WILL GOVERNMENT DEFICITS DROP ENOUGH OR PRIVATE SAVING INCREASE ENOUGH TO MEET AMERICA'S FUTURE INVESTMENT NEEDS WITHOUT A CONTINUATION OF HUGE TRADE DEFICITS THAT ARE SETTING OFF POLITICAL DISCORD AT HOME AND ABROAD IN A RECENT COMMENTARY MICKEY D LEVY CHIEF FINANCIAL ECONOMIST AT NATIONS BANK WROTE THAT THE CLINTON BUDGET PLAN WILL REDUCE THE BUDGET DEFICIT ALTHOUGH NOT AS MUCH AS PROJECTED BUT IT ALSO WILL REDUCE PRIVATE SAVING THROUGH HIGHER TAXES AND NOT MATERIALLY RAISE THE NATIONAL RATE OF SAVING AND BECAUSE IT DOESN'T CHANGE THE RISING SHARE OF FEDERAL OUTLAYS FOR CONSUMPTIONORIENTED ENTITLEMENT PROGRAMS MR LEVY BELIEVES ITS IMPACT ON PRIVATE INVESTMENT WILL BE NEUTRAL AT BEST CLEARLY AMERICA'S LOW SAVING RATE MUST RISE AND ITS HUGE BUDGET DEFICITS MUST FALL OTHERWISE THE COUNTRY FACES TRADE AND INVESTMENT PROBLEMS FOR YEARS TO COME 9310110046 930923 LEISURE & ARTS IT'S A HUMAN'S LIFE DOGS SAY BY MARIE WINN IN HER SUPERB NEW BOOK THE HIDDEN LIFE OF DOGS ELIZABETH MARSHALL THOMAS PRESENTS A LONGOVERDUE DEFENSE OF ANTHROPOMORPHISM AS SHE DEMONSTRATES CONVINCINGLY AGAIN AND AGAIN ANIMALS DO HAVE THOUGHTS AND EMOTIONS COMPARABLE IN SOME WAYS TO OUR OWN AND WHY SHOULD THIS NOT BE SO EVOLUTIONARY EVIDENCE SHOWS THAT ALL HUMAN CHARACTERISTICS WITH SURVIVAL VALUE HAVE PREDECESSORS IN THE PHYLOGENETIC PAST CLEARLY SUCH SUPREMELY VALUABLE HUMAN PROPERTIES AS REASONING ABILITY AND EMOTIONAL COMPLEXITY DID NOT SPRING FORTH FULLY EVOLVED THE NOTION THAT ONLY HUMANS THINK AND FEEL AS MS THOMAS POINTS OUT IS A RELIC OF CREATIONISM HARKING BACK TO THE VICTORIAN ERA MS THOMAS ESTABLISHES THAT NOT ONLY DO DOGS REASON THEY EVEN ENGAGE IN THEIR OWN TYPE OF ANTHROPOMORPHISM SHE DUBS IT CYNOMORPHISM FROM THE GREEK WORDS FOR DOG AND FORM AN EXAMPLE OF THIS PHENOMENON HAS BEEN OBSERVED BY DOG OWNERS WHOSE USUALLY AMIABLE PET SNARLS AT THEM IN DEFENSE OF SOME SLIMY DIRTENCRUSTED BONE OBVIOUSLY THE DOG ASSUMES THAT THE HUMAN WILL FIND THE REVOLTING OBJECT AS DESIRABLE AS ANOTHER DOG MIGHT HERE THE ANIMAL IS ASCRIBING DOG VALUES TO HUMANS JUST AS HUMANS OFTEN INTERPRET DOG BEHAVIOR BY THEIR OWN STANDARDS THE DOG IS WRONG IN THIS CASE JUST AS AN ANTHROPOMORPHIZING HUMAN OFTEN PROVES TO BE BARKING UP THE WRONG TREE AND FOR IDENTICAL REASONS BOTH BASE THEIR COMPARISON ON AN INCOMPLETE UNDERSTANDING OF THE SPECIES BEING COMPARED WHEN PEOPLE ANTHROPOMORPHIZE ABOUT A DIFFERENT CLASS OF ANIMALS ENTIRELY SUCH AS BIRDS THEY ARE EVEN MORE LIKELY TO MAKE FAULTY COMPARISONS MS THOMAS PROVIDES A TELLING EXAMPLE A PSYCHIATRIST OF HER ACQUAINTANCE SAW A BIRD FLY INTO A PICTURE WINDOW AND FALL TO EARTH WHEREUPON A SECOND BIRD SWOOPED DOWN PICKED UP THE FALLEN BIRD AND FLEW OFF WITH IT THE PSYCHIATRIST PROMPTLY CONCLUDED THAT THE SECOND BIRD WAS THE MATE OF THE FIRST PRESUMING FURTHER THAT THE FAITHFUL PARTNER HAD ARRIVED TO RESCUE HIS LOVED ONE AND CARRY HER OFF TO SAFETY I HOPE THE DOCTOR IS MORE ASTUTE ABOUT HUMAN MOTIVATIONS HIS ANTHROPOMORPHIC CONCLUSION IS ABSURD AS ANY BIRDWATCHER WORTH HIS SCOPE COULD HAVE TOLD HIM BIRDS APART FROM CERTAIN WATERFOWL DO NOT CARRY EACH OTHER TO SAFETY UNDER ANY CIRCUMSTANCES INDEED THERE IS ONLY ONE REASONABLE EXPLANATION FOR THE SCENE THE DOCTOR DESCRIBES THE SWOOPING BIRD WAS A PREDATOR TAKING ADVANTAGE OF THE FIRST BIRD'S ACCIDENT TO SEIZE IT AS PREY ONE CAN CROSS THE BOUNDARIES OF TAXONOMICAL CLASS IN THE OTHER DIRECTION AND ASSIGN BIRDLIKE CHARACTERISTICS VALUES OR BEHAVIORS TO HOMO SAPIENS ORNITHOMORPHISM AS THIS SORT OF COMPARISON MIGHT BE CALLED IS NOT ALL THAT UNCOMMON LIKE ANTHROPOMORPHISM IT IS SOMETIMES APT AND SOMETIMES FAR OFF THE MARK DEPENDING ON HOW CLOSELY IT CONFORMS TO BIRD REALITIES HERE ARE SOME COMMON EXAMPLES EATS LIKE A BIRD THE PHRASE ALWAYS REFERS TO THE MODESTY OF SOMEONE'S APPETITE THEREFORE IMPLYING THAT BIRDS EAT SMALL QUANTITIES OF FOOD THIS IS WILDLY INCORRECT THOUGH A HUMMINGBIRD MAY ONLY CONSUME HALF AN OUNCE OF COMBINED INSECTS AND NECTAR IN A DAY THIS ACTUALLY CONSTITUTES MORE THAN TWICE THE BIRD'S TOTAL WEIGHT THE EQUIVALENT OF A 150POUND MAN TAKING IN 300 POUNDS OF FOOD DAILY THE COMPARISON MAY BE SLIGHTLY MORE APT IN THE CASE OF REALLY LARGE BIRDS AN EAGLE EATING TWO POUNDS OF MEAT A DAY IS ONLY CONSUMING A QUARTER OF HIS BODY'S WEIGHT BUT THAT WOULD BE 37 1/2 POUNDS FOR THE 150POUND PERSON STILL A HEARTY DAY'S INTAKE AND HARDLY A SUITABLE MODEL FOR EATING LIKE A BIRD TO FEATHER THE NEST ACCORDING TO THE AMERICAN HERITAGE DICTIONARY 3RD EDITION THIS PHRASE MEANS TO GROW WEALTHY BY TAKING ADVANTAGE OF ONE'S POSITION NUMBERS OF BIRDS DO INDEED FEATHER THEIR NESTS WITH DOWN THEY PLUCK FROM THEIR OWN BREAST THE DOWN HELPS TO INSULATE THE BIRDS' NEST AS IT DOES COUNTLESS HUMAN JACKETS AND QUILTS BUT INSULATION IS NOT THE MAIN ADVANTAGE THAT ACCRUES FROM THE FEATHERED NEST THE AREA OF SKIN THAT HAS BEEN PLUCKED BARE KNOWN AS THE BROOD PATCH SERVES TO FACILITATE HEAT FLOW FROM THE INCUBATING PARENT TO THE EGGS THEREBY INCREASING THE ODDS OF SUCCESSFUL HATCHING A BIRD WHO HAS THUS FEATHERED HIS OR HER NEST BOTH SEXES MAY HAVE A BROOD PATCH AND SHARE IN INCUBATING DUTIES HAS CERTAINLY TAKEN ADVANTAGE OF ITS POSITION TO INCREASE ITS WEALTH WHICH FOR BIRDS MAINLY RESIDES IN HEALTHY FLEDGLINGS NEST EGG THE PHRASE DENOTES A SUM OF MONEY SET ASIDE AS A RESERVE FUND OR MORE BROADLY AN ACCUMULATION OF WEALTH THIS DERIVES FROM AN ARTIFICIAL OR NATURAL EGG PLACED IN A NEST TO INDUCE A BIRD TO CONTINUE TO LAY EGGS IN THAT PLACE IN FACT GENERALLY IT IS THE REMOVAL OF LAID EGGS FROM A NEST RATHER THAN THE ADDITION OF AN ARTIFICIAL ONE THAT WILL INDUCE A BIRD TO CONTINUE LAYING A LARGER QUANTITY OF EGGS THAN SHE MIGHT NORMALLY PRODUCE A NORTHERN FLICKER ONE OF THE MOST COMMON MEMBERS OF THE WOODPECKER FAMILY NORMALLY LAYS THREE TO SIX EGGS BEFORE BEGINNING TO INCUBATE BUT ACCORDING TO AC BENT'S CLASSIC LIFE HISTORIES OF NORTH AMERICAN WOODPECKERS A CERTAIN CHARLES L PHILLIPS INDUCED A NESTING FLICKER TO LAY 71 EGGS IN 73 DAYS BY REMOVING ONE EGG FROM THE NEST EACH DAY FURTHERMORE STUDIES OF BLACKHEADED GULLS HAVE DEMONSTRATED THAT THE INTRODUCTION OF A WOODEN NEST EGG INTO THE NEST AT THE VERY START OF THE NESTING PERIOD WILL OFTEN PREVENT THE DEVELOPMENT OF EGGS ALTOGETHER AS IN THAT PARTICULAR SPECIES THE PROCESS OF INCUBATION ITSELF SERVES TO SHUT DOWN THE BIRDS' OVARIES AND PREVENT EGG PRODUCTION BIRD BRAIN THE WORDS DO NOT FLATTER THE INTELLECT OF THE ONE THUS DESCRIBED AND CLEARLY INSINUATE THAT BIRDS ARE NOT VERY SMART CHRISTOPHER LEAHY AUTHOR OF THE BIRDWATCHER'S COMPANION SEEMS TO AGREE WHEN HE WRITES IF WE DEFINE INTELLIGENCE AS THE ABILITY TO UNDERSTAND TO REASON TO MAKE DEDUCTIONS FROM APPARENT FACTS TO USE SYMBOLS AND DEAL WITH ABSTRACTIONS IT IS VERY CLEAR THAT BIRDS HAVE NONE AT ALL STILL THERE ARE EXPERTS WHO THINK OTHERWISE IT APPEARS THAT BIRDS ARE MORE CAPABLE OF LEARNING AND REASONING THAN HAS BEEN ASSUMED AND THAT THEY ARE IN FACT IN THE SAME INTELLECTUAL LEAGUE AS MOST MAMMALS WRITE PAUL EHRLICH DAVID DOBKIN AND DARRYL WHEYE THE AUTHORS OF THAT HIGHLY USEFUL COLLECTION OF FACTS ABOUT NORTH AMERICAN BIRDS THE BIRDER'S HANDBOOK TO SUPPORT THEIR CLAIM THEY CITE TITMICE IN GREAT BRITAIN LEARNING TO DIP INTO MILK BOTTLES LEFT ON DOORSTEPS KESTRELS FOLLOWING SLOW TRAINS IN MEXICO TO CATCH SMALL BIRDS DISTURBED BY THE TRAINS' PASSAGE AND EXPERIMENTS SHOWING THAT CAGED BLUE JAYS WHO TRY TO EAT A DISTASTEFUL MONARCH BUTTERFLY QUICKLY LEARN TO AVOID ANY INSECT WITH A MONARCH'S ORANGE AND BLACK COLORING INDEED JAYS IN ADJACENT CAGES WHO MERELY OBSERVED THEIR FELLOW BIRDS' GUSTATORY DISPLEASURE ALSO LEARNED TO AVOID THE UNPALATABLE BUTTERFLIES THAT'S REASONING THE AUTHORS PROVIDE MANY OTHER ASTONISHING EXAMPLES OF BIRD INTELLIGENCE INCLUDING PIGEONS WHO LEARNED TO GET AT A BANANA HUNG TOO HIGH FOR THEM TO REACH BY PUSHING A BOX UNDER THE FRUIT HOPPING UP ON IT AND PECKING AWAY ORNITHOMORPHIZING OCCURS MOST FREQUENTLY IN THE AREA OF HUMAN HOME AND FAMILY LIFE PEOPLE OFTEN REFER TO THEIR HOMES AS NESTS TALK ABOUT INDULGING THEIR NESTING INSTINCTS REFER TO THEIR CHILDREN AS NESTLINGS AND EVENTUALLY BEMOAN OR CELEBRATE THEIR STATUS AS EMPTY NESTERS THESE COMPARISONS TO BE SURE MAY BE BASED ON AN ELEMENT OF WISHFUL THINKING BIRDS ARE BRILLIANT ARCHITECTS AND HOME DECORATORS AS ANYONE WHO HAS WATCHED A NORTHERN ORIOLE OR A REDEYED VIREO IN THE PROCESS OF CONSTRUCTION WILL CONFIRM THEY ARE ALSO BRAVE AND RESOURCEFUL PARENTS A SMALL KINGBIRD WILL ATTACK AN EAGLE WHO HAS TRESPASSED ITS NESTING TERRITORY BIRDS ARE INSPIRING IN THEIR TENACIOUS ATTENTIVENESS TO THEIR YOUNG ACCORDING TO THE AUDUBON SOCIETY ENCYCLOPEDIA OF NORTH AMERICAN BIRDS THE AVERAGE NESTLING FEEDING RATE FOR A WIDE VARIETY OF SMALL SONGBIRDS IS 412 MEALS PER HOUR IT IS INSPIRING TOO THAT IN THE AVIAN KINGDOM MALES AND FEMALES ALMOST ALWAYS SHARE IN THE CARE AND FEEDING OF THEIR YOUNG SURELY SUCH ADMIRABLE TRAITS ARE NOT MERELY FOR THE BIRDS MS WINN WRITES ABOUT BIRDS AND OTHER SUBJECTS FROM NEW YORK CITY SEE RELATED LETTER THE CAT'S MEOW WSJ OCT 11 1993 9309230087 YY93 MM10 9310110092 930818 LAW LEGAL BEAT MORE STATES ARE MOVING TO ALLOW STUDENTLED PRAYER IN SCHOOLS BY KATIA HETTER STAFF REPORTER OF THE WALL STREET JOURNAL TENNESSEE HAS ADOPTED A LAW TO BRING PRAYER BACK INTO THE SCHOOLS AND OTHER STATES ARE FOLLOWING ITS LEAD SPURRED BY FEDERAL COURT DECISIONS ALLOWING PRAYER AS LONG AS IT IS INITIATED AND LED BY STUDENTS SUCH LEGISLATION WHICH HASN'T YET PASSED THE SCRUTINY OF THE COURTS REVIVES AN ISSUE THAT MANY CONSTITUTIONAL SCHOLARS THOUGHT THE SUPREME COURT SETTLED 30 YEARS AGO WHEN IT RULED THAT PRAYER IN PUBLIC SCHOOLS VIOLATED THE CONSTITUTION'S BAN ON GOVERNMENT ENDORSEMENT OF RELIGION BUT A FEDERAL APPEALS COURT DECISION LAST YEAR AND A FEDERAL TRIAL JUDGE'S RULING A FEW MONTHS AGO APPEAR TO HAVE CARVED OUT A POSSIBLE EXCEPTION TO THAT BAN THOSE DECISIONS HELD THAT STUDENTLED PRAYER AT PUBLICSCHOOL EVENTS IS ALLOWED IN SOME LIMITED CIRCUMSTANCES STATE LAWMAKERS HOWEVER HAVE SEIZED UPON THOSE DECISIONS AS GROUNDS FOR AN EVEN BROADER RETURN OF SCHOOL PRAYER AT GRADUATION FOOTBALL GAMES AND SCHOOL ASSEMBLIES IN JUNE TENNESSEE PASSED ITS SCHOOLPRAYER LAW OVER THE OBJECTIONS OF THE STATE'S OWN ATTORNEY GENERAL THAT THE LAW WAS UNCONSTITUTIONAL SIMILAR LEGISLATION IS PENDING IN ALABAMA AND LEGISLATORS FROM SEVERAL OTHER STATES HAVE VOICED INTEREST IN PROPOSING BILLS MODELED AFTER THE TENNESSEE LAW THERE IS A GROUNDSWELL OF SUPPORT FOR STUDENTINITIATED PRAYER ACTIVITIES FROM STUDENTS SAYS JAY ALAN SEKULOW CHIEF COUNSEL OF REV PAT ROBERTSON'S AMERICAN CENTER FOR LAW AND JUSTICE MR SEKULOW'S GROUP HAS BEEN ENCOURAGING SCHOOL ADMINISTRATORS TO ALLOW STUDENTINITIATED PRAYER IN THE WAKE OF THE RECENT COURT DECISIONS THE TENNESSEE LAW WHICH LEGISLATORS IN SEVERAL OTHER STATES SEE AS THE PROTOTYPE FOR THEIR ATTEMPTS PERMITS PUBLIC SCHOOL STUDENTS TO PROPOSE AND LEAD NONSECTARIAN AND NONPROSELYTIZING PRAYERS ON PUBLICSCHOOL GROUNDS DURING NONCOMPULSORY STUDENT ASSEMBLIES SPORTING EVENTS AND GRADUATIONS ALABAMA LEGISLATOR BILL FULLER LAST WEEK INTRODUCED A BILL BASED ON THE TENNESSEE LAW THE DEVELOPMENTS IN TENNESSEE AND THE MIRACLE OF LAST YEAR'S FEDERAL APPEALS COURT DECISION BROUGHT THE ISSUE INTO FOCUS SAYS MR FULLER THE COURT DECISIONS AND PASSAGE OF TENNESSEE'S LAW ALSO HAVE BOLSTERED SUPPORT FOR SIMILAR SCHOOLPRAYER LEGISLATION THAT ALREADY WAS PENDING IN SOME STATES IN OKLAHOMA SUPPORTERS OF A BILL ON VOLUNTARY SCHOOL PRAYER AT ATHLETIC EVENTS CITED THE APPEALS COURT RULING THE LEGISLATION WAS APPROVED BY THE STATE'S HOUSE OF REPRESENTATIVES BUT HASN'T BEEN RELEASED FROM COMMITTEE IN THE SENATE WIDESPREAD POPULAR SUPPORT LED TENNESSEE'S LEGISLATURE TO PASS THE BILL OVERWHELMINGLY DESPITE STATE ATTORNEY GENERAL CHARLES BURSON'S OPINION THAT IT WAS UNCONSTITUTIONAL UNLIKE OTHER STATES WHICH ELECT THEIR ATTORNEYS GENERAL IN TENNESSEE THE OFFICIAL IS APPOINTED BY THE STATE'S HIGH COURT TO GIVE NONPARTISAN ADVICE TO THE LEGISLATURE AND THE GOVERNOR BECAUSE OF HIS POSITION THAT THE LAW IS UNCONSTITUTIONAL MR BURSON'S OFFICE WON'T REPRESENT THE STATE IN DEFENDING THE LEGISLATION IN ANY COURT CHALLENGE THIS IS THE MOST IMPORTANT THING TO PULL THE PEOPLE OF TENNESSEE TOGETHER IN A COMMON CAUSE THAN ANYTHING SINCE DESERT STORM SAYS DON WRIGHT THE BILL'S SPONSOR IN THE TENNESSEE SENATE SEN WRIGHT SAYS THE LEGISLATURE DOESN'T OFTEN PASS BILLS OVER THE ATTORNEY GENERAL'S CONSTITUTIONAL OBJECTIONS BUT WHAT WE'RE SEEING IS THAT PEOPLE REALLY WANT THE RIGHT TO PRAY OFFICIALS FROM THE AMERICAN CIVIL LIBERTIES UNION AND AMERICANS UNITED FOR SEPARATION OF CHURCH AND STATE SAY SUCH LAWS WILL CLEAR THE WAY FOR PRAYERS THAT ARE PROMPTED NOT SO MUCH BY STUDENTS AS BY OUTSIDE LOBBYING GROUPS AND SCHOOL OFFICIALS THE IDEA THAT IT'S STUDENTINITIATED IS RIDICULOUS SAYS RITA SPILLENGER EXECUTIVE DIRECTOR OF THE ARKANSAS ACLU NOTHING WILL HAPPEN IN THESE CEREMONIES THAT ISN'T APPROVED BY THE SCHOOL ADMINISTRATION THE FACT THAT LEGISLATORS UNDERTOOK TO WRITE A STATUTE IS AN ENDORSEMENT BY THE STATE OF A PARTICULAR RELIGIOUS EXPRESSION SAYS LAURENCE TRIBE A CONSTITUTIONAL LAW PROFESSOR AT HARVARD LAW SCHOOL THIS LEGISLATION IS RATHER IRONICALLY CALCULATED TO BACKFIRE IF IT IS CHALLENGED IN COURT ON CONSTITUTIONAL GROUNDS HE SAYS THE ISSUE OF STUDENTLED PRAYER IS EXPECTED TO BE ADDRESSED EVENTUALLY BY THE SUPREME COURT THE SUPREME COURT THIS SUMMER DECLINED TO REVIEW A FIFTH US CIRCUIT COURT OF APPEALS' DECISION LAST YEAR THAT ALLOWED STUDENTLED AND STUDENTINITIATED PRAYER AT A HOUSTON SCHOOL'S GRADUATION BUT ANOTHER CASE INVOLVING TWO NEW JERSEY HIGH SCHOOLS IS PENDING IN FEDERAL COURT IN NEW JERSEY IN THAT CASE THE THIRD US CIRCUIT COURT OF APPEALS ISSUED A TEMPORARY RESTRAINING ORDER BARRING SUCH PRAYERS AT THE TWO SCHOOLS BUT THE APPEALS COURT DIDN'T RULE ON THE MERITS OF THE CASE WHICH IS STILL BEFORE A FEDERAL TRIAL JUDGE THE NEARDISAPPEARANCE OF MERGER AND ACQUISITION WORK SENT THE CORPORATE LEGAL COMMUNITY INTO THE DOLDRUMS BUT IT ALMOST SEEMS LIKE THE OLD DAYS AT THE LAW FIRMS TAPPED FOR THE 126 BILLION PURCHASE OF MCCAW CELLULAR COMMUNICATIONS CO BY AMERICAN TELEPHONE & TELEGRAPH CO WITH ITS ANTITRUST TAX AND REGULATORY IMPLICATIONS THE TRANSACTION IS FULL OF ENOUGH PROBLEMS TO KEEP LAWYERS AT A DOZEN LAW FIRMS BUSY FOR MONTHS AMONG THE FIRMS CHIEF COUNSEL FOR AT&T IS NEW YORK'S WACHTELL LIPTON ROSEN & KATZ A STANDBY FROM THE 1980S MERGERS AND ACQUISITION BOOM SIDLEY & AUSTIN AT&T'S LONGTIME REGULAR OUTSIDE COUNSEL IS DOING THE ANTITRUST WORK ON THE DEAL IT'S A REPEAT OF THEIR PARTNERSHIP TWO YEARS AGO WHEN AT&T ACQUIRED NCR FOR 748 BILLION SHEARMAN & STERLING IS REPRESENTING AT&T'S FINANCIAL ADVISER MORGAN STANLEY & CO MCCAW SENT THE BULK OF ITS WORK TO FRIEDMAN & KAPLAN IN NEW YORK ASSISTING IS PERKINS COIE MCCAW'S SEATTLE WASHBASED REGULAR OUTSIDE COUNSEL THE WASHINGTON DC OFFICE OF JONES DAY REAVIS & POGUE IS PROVIDING TAX EXPERTISE AND WILEY REIN & FIELDING ALSO IN WASHINGTON IS HANDLING FEDERAL COMMUNICATIONS COMMISSIONRELATED QUESTIONS MCCAW'S FINANCIAL ADVISER LAZARD FRERES & CO WAS REPRESENTED BY THE NEW YORK OFFICE OF SAN FRANCISCOBASED MORRISON & FOERSTER NOTED ELLIOTT J HAHN HAS BECOME A PARTNER IN THE LOS ANGELES OFFICE OF CHICAGOBASED SONNENSCHEIN NATH & ROSENTHAL MR HAHN SPECIALIZES IN CORPORATE BANKING AND INTERNATIONAL TRADE WORK AND PRIMARILY REPRESENTS JAPANESE CLIENTS DOING BUSINESS IN THE US BEFORE JOINING 330LAWYER SONNENSCHEIN HE WAS A PARTNER IN THE LOS ANGELES OFFICE OF THE NEW YORK LAW FIRM WHITMAN & RANSOM JONATHAN MOSES CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTERS LETTERS TO THE EDITOR DISCLOSE QUICKLY AVOID SHARKS WSJ OCT 11 1993 9308180014 YY93 MM10 9310110091 930809 INTERNATIONAL WASHINGTON INSIGHT OIL EMBARGO REMAINS IN EFFECT ON HAITI AS NAMING OF PRIME MINISTER IS STALLED BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IT'S BEEN MORE THAN A MONTH SINCE THE US HELPED NEGOTIATE A POLITICAL SETTLEMENT IN HAITI BUT A PUNISHING UN OIL EMBARGO IS STILL IN PLACE WHO'S TO BLAME FOR THE HOLDUP IS A MATTER OF DEBATE BEFORE THE EMBARGO CAN BE LIFTED AND DESPERATELY NEEDED INTERNATIONAL AID CAN BEGIN TO FLOW THE HAITIAN SENATE MUST APPROVE A NEW PRIME MINISTER A FIRST STEP TOWARD A RETURN TO CIVILIAN RULE BUT US OFFICIALS SAY BICKERING AND POLITICAL JOCKEYING AMONG THE BACKERS OF OUSTED PRESIDENT JEANBERTRAND ARISTIDE HAVE PREVENTED THE VOTE PRESIDENT ARISTIDE'S SUPPORTERS ACCUSE THE REPRESSIVE MILITARY GOVERNMENT OF THREATENING AND HARASSING THE SENATORS IN AN EFFORT TO DERAIL THE PROCESS THEY SAY THAT MR ARISTIDE WHO IS SCHEDULED TO RETURN TO OFFICE ON OCT 30 IS WORKING HARD TO BREAK THE DEADLOCK AND ANYWAY THEY SAY THEIR SIDE DOESN'T HAVE A WORKING MAJORITY IN THE SENATE A CLAIM DISPUTED BY THE US IN THE PAST US GOVERNMENTS HAVE DIPPED INTO HAITIAN POLITICS ONLY TO WALK AWAY QUICKLY IN FRUSTRATION THE CLINTON ADMINISTRATION HOWEVER CLAIMS TO BE IN FOR THE LONG HAUL HAITI IS A TEST OF THE ADMINISTRATION'S COMMITMENT TO PREVENTIVE DIPLOMACY A KEY TENET OF AN EMERGING CLINTON FOREIGN POLICY CONTINUED UPHEAVAL IN HAITI COULD UNLEASH A MASSIVE REFUGEE EXODUS TO THE US A STRONG MOTIVATION TO STAY ON THE JOB WE MAY NOT ALWAYS AGREE WITH THE ADMINISTRATION SAYS MIKE BARNES COUNSEL TO PRESIDENT ARISTIDE AND A FORMER US CONGRESSMAN BUT PRESIDENT CLINTON IS CLEARLY COMMITTED THE STATE DEPARTMENT HAS SET UP A SPECIAL OFFICE WITH FIVE DIPLOMATS AND EXPERTS TO HELP OVERSEE HAITI'S TRANSITION FROM MILITARY RULE TO DEMOCRACY THE TASK IS DAUNTING THE POOREST COUNTRY IN THE HEMISPHERE HAITI HAS AN ECONOMY THAT HAS BEEN BATTERED BY ECONOMIC SANCTIONS IMPOSED AFTER THE SEPTEMBER 1991 COUP GOVERNMENT MINISTRIES THAT ARE SUPPOSED TO PRESIDE OVER THE RECONSTRUCTION EFFORT ARE EITHER BANKRUPT OR TOTALLY CORRUPT AND THERE ARE STRONG DOUBTS ABOUT WHETHER THE MILITARY LEADERSHIP REALLY INTENDS TO GIVE UP POWER THERE ALSO ARE QUESTIONS ABOUT WHETHER PRESIDENT ARISTIDE HAS THE PERSONAL FLEXIBILITY AND POLITICAL SKILLS TO RUN A GOVERNMENT OF NATIONAL RECONCILIATION DESPITE THE ODDS THE UN AND THE SELFDESCRIBED FOUR FRIENDS OF HAITI THE US CANADA VENEZUELA AND FRANCE ARE DEVELOPING AN AMBITIOUS RECONSTRUCTION PLAN ONE OF THE FIRST PRIORITIES WILL BE TO HELP REFORM THE HAITIAN MILITARY ONCE THE POLITICAL LOGJAM IS BROKEN SOME 500600 LIGHTLYARMED POLICE MONITORS WILL BE SENT TO THE ISLAND UNDER THE AUSPICES OF THE UN THEY WILL PROVIDE SOME BASIC ONTHEJOB TRAINING TO HAITIAN POLICE THEY ALSO WILL TRY TO DISSUADE THE POLICE FROM ABUSING CIVILIANS AND CIVILIANS FROM SEEKING VENGEANCE ON THE POLICE THE US IS HOPING THAT FRENCH SPEAKING COUNTRIES FRANCE CANADA AND BELGIUM WILL PROVIDE THE MONITORS A LONGERTERM UN PROJECT WILL HELP ESTABLISH AND TRAIN A NEW CIVILIAN POLICE FORCE SEPARATE FROM THE ARMY IN ADDITION THE US WILL PROVIDE SOME 5060 MILITARY TRAINERS ALSO UNDER UN COMMAND TO HELP PREPARE THE HAITIAN ARMY FOR NEW MISSIONS INCLUDING CIVIC ACTION BORDER PATROL AND DISASTER RELIEF ANOTHER 500 MILITARY CONSTRUCTION ENGINEERS WILL BE SENT TO WORK WITH HAITI'S ARMY ON A VARIETY OF EMERGENCY RECONSTRUCTION PROJECTS BUILDING ROADS DRILLING WELLS AND CONSTRUCTING NEW ARMY BARRACKS OUTSIDE THE CAPITAL AND AWAY FROM POLITICS THE US IS HOPING TO CONTRIBUTE ABOUT ONETHIRD OF THE ENGINEERING FORCE BUT IS HAVING A HARD TIME FINDING OTHER COUNTRIES TO VOLUNTEER THE UN DEVELOPMENT PROGRAM MEANWHILE HAS PRIVATELY PRESENTED INTERNATIONAL DONORS WITH A DRAFT OF AN ECONOMIC RECONSTRUCTION PLAN THAT COULD COST ABOUT 190 MILLION IN THE FIRST YEAR THE PLAN IS INTENDED TO CREATE A MAXIMUM NUMBER OF JOBS FOR HAITIANS ESTIMATES REACH AS HIGH AS 70000 WHILE REBUILDING INFRASTRUCTURE THE AGRICULTURAL SECTOR AND SOME INDUSTRIES WHERE THE MONEY WILL COME FROM FOR THESE PROJECTS ISN'T YET CLEAR THE US IS HOPING TO SPREAD THE RESPONSIBILITY AROUND WIDELY PRESSING INTERNATIONAL LENDERS AS WELL AS SEVERAL KEY ALLIES TO ANTE UP PRESIDENT CLINTON ALREADY HAS PLEDGED AN INITIAL 375 MILLION IN EMERGENCY AID FOR HAITI AN AMOUNT THAT IS EXPECTED TO RISE IN HAITI WHETHER IT'S MEN OR MONEY WE'RE THE LENDER OF LAST RESORT SAYS ONE US OFFICIAL BUT BEFORE ANYTHING CAN HAPPEN HAITI'S SENATE WILL FINALLY HAVE TO MEET AND SELECT A NEW PRIME MINISTER SEE RELATED LETTER LETTERS TO THE EDITOR KILLINGS THREATEN HAITIAN ACCORD WSJ OCT 11 1993 9308090051 YY93 MM10 9310080191 931008 SWEDEN OFFICIALS FIND POSSIBILITY OF CRIMES LINKED TO BANK LOANS SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM SWEDISH FINANCIAL REGULATORS HAVE UNCOVERED SUSPECTED CRIMINAL ACTIVITY LINKED TO LOANS REPRESENTING NEARLY ONETHIRD OF BANKS' TOTAL CREDIT LOSSES IN THE PAST THREE YEARS FINANSINSPEKTIONEN SWEDEN'S MAIN BANKING WATCHDOG DISCLOSED IT HAS REFERRED 156 CASES INVOLVING CREDITS TOTALING 378 BILLION SWEDISH KRONOR 47 BILLION TO PROSECUTORS FOR POSSIBLE CRIMINAL ACTION THE AGENCY SAID SUSPECTED WRONGDOING RANGED FROM BREACHES OF BANKS' INTERNAL CREDIT PROCEDURES TO OUTRIGHT FRAUD BY BORROWERS BUT DECLINED TO SPECULATE ON HOW MANY CASES MIGHT ULTIMATELY RESULT IN CRIMINAL PROCEEDINGS THE MOUNTAIN OF QUESTIONABLE LOANS SURFACED DURING A SIXMONTH PROBE CONDUCTED BY FINANSINSPEKTIONEN PROSECUTORS AND STOCKHOLM POLICE THE UNPRECEDENTED COOPERATION WAS SPURRED BY BANKS' MASSIVE LOAN LOSSES AND A SUBSEQUENT STRING OF STATEFINANCED BAILOUTS THAT TO DATE HAVE COST SWEDISH TAXPAYERS 44 BILLION KRONOR PRESSURE FOR A RIGOROUS PROBE MOUNTED WHEN 14 PEOPLE INCLUDING TWO FORMER EMPLOYEES OF A SMALL SWEDISH SAVINGS BANK WERE INDICTED EARLY THIS YEAR ON VARIOUS CRIMINAL CHARGES ASSOCIATED WITH HUGE LOSSES INCURRED BY THAT BANK SPARBANKEN VAEST THE FINANSINSPEKTIONEN'S PROBE TARGETED A HALF DOZEN BANKS AND CREDIT INSTITUTIONS THAT HAVE EITHER RECEIVED OR APPLIED FOR STATE FINANCIAL SUPPORT SINCE EARLY FEBRUARY THE AGENCY'S OFFICIALS HAVE SCRUTINIZED LOANS BIGGER THAN 15 MILLION KRONOR MADE SINCE 1990 BY THOSE BANKS SKANDINAVISKA ENSKILDA BANKEN GOTA BANK FOERSTA SPARBANKEN NORDBANKEN FOERENINGSBANKEN SECURUM FINANS AND SVENSKA FASTIGHETSKREDIT CASES OF SUSPECTED CRIMINAL ACTIVITY WERE REFERRED TO PROSECUTORS SUCCESSIVELY AS THE INVESTIGATION PROCEEDED SAID CLAES NORGREN FINANSINSPEKTIONEN'S DIRECTOR GENERAL THE 156 SUSPECT LOANS REPRESENT 5 OF THE BANKS' TOTAL LOANS OUTSTANDING AT THE YEAR END HE SAID 9310080190 931008 GOTTSCHALKS' SEPTEMBER SALES UP FRESNO CALIF GOTTSCHALKS INC SAID SEPTEMBER SALES INCREASED 71 TO 289 MILLION FROM 269 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR ININCREASED 4 THE DEPARTMENTSTORE CHAIN SAID 9310080189 931008 LEISURE & ARTS ON SPORTS WHY MIKE WILL BE BACK BY FREDERICK C KLEIN CHICAGO ONE OF MICHAEL JORDAN'S MANY COMMERCIALS SHOWED HIM DOING SOME OF THE AMAZING THINGS HE DID ROUTINELY ON BASKETBALL COURTS WHILE YOUNGSTERS SANG I WANNA BE LIKE MIKE NOW IT TURNS OUT THAT BEING LIKE MIKE WASN'T AS WONDERFUL AS IT APPEARED TO BE IN MAKING HIS STUNNINGLY UNEXPECTED RETIREMENT ANNOUNCEMENT WEDNESDAY MIKE SEEMED TO BE SAYING THAT HE DIDN'T WANT TO BE LIKE MIKE ANYMORE OR AT LEAST LIKE THE MIKE WHOSE EVERY MOVEMENT WAS RECORDED BY A PESKY PRESS AND FOLLOWED BY AN ADORING INTRUSIVE PUBLIC JORDAN COUCHED HIS RATIONALE FOR QUITTING THE NATIONAL BASKETBALL ASSOCIATION'S CHICAGO BULLS IN BASKETBALL TERMS HE SAID THAT AFTER TWO OLYMPIC GOLD MEDALS LEADERSHIP OF THREE CONSECUTIVE NBA CHAMPIONSHIP TEAMS AND SEVEN LEAGUE SCORING TITLES HE'D LOST HIS ZEST FOR THE GAME AND HAVING REACHED HIS SPORT'S PINNACLE WAS LEFT WITH NOTHING ELSE TO PROVE BUT TO THE QUESTION OF WHAT A HEALTHY 30YEAROLD WOULD ACTUALLY DO IN RETIREMENT HE WAS LESS THAN CLEAR VOICING THE KIND OF RETIREMENT FANTASIES MANY HARBOR HE MIGHT PURSUE BUSINESS OPPORTUNITIES WITH COMPANIES WHOSE PRODUCTS HE ENDORSES HE SAID HE'D SPEND TIME WITH HIS FAMILY PLAY GOLF AND TRY TO LIVE A MORE NORMAL LIFE HE'D WATCH THE GRASS GROW AND THEN GO CUT IT AND HE ALLOWED THAT HE THOUGHT HIS EXISTENCE WOULD BENEFIT FROM A SPECIFIC SUBTRACTION I WON'T BE DOING MUCH OF THIS ANYMORE HE SAID GESTURING AT THE BATTERY OF MICROPHONES BEFORE HIM AT THE CROWDED MORNING PRESS CONFERENCE IN THE BULLS' SUBURBAN PRACTICE FACILITY INDEED WHATEVER GENERAL POINTS CAN BE MADE OF THE EVENT WHICH KNOCKED RUSSIA SOMALIA AND EVEN THE BASEBALL PLAYOFFS OFF FRONT PAGES ACROSS THE COUNTRY HAVE TO DO WITH THE NATURE OF PRESENTDAY CELEBRITY AND THAT IN TURN RELATES TO THE HOMELY PROPOSITION THAT EVERYBODY EARNS HIS MONEY ONE WAY OR ANOTHER WE REWARD THE TALENTED BEAUTIFUL OR SOMETIMES MERELY INTRIGUINGLY ODD AMONG US WITH RICHES BEYOND IMAGINING BUT THE PRICE SURRENDER OF PRIVACY CAN BE STEEP FOR JORDAN THE PLANET'S MOST FAMOUS ATHLETE THIS WAS TRUE TO THE NTH DEGREE WHILE YOUR RUNOFTHEMILL MOVIE STAR OR SPORTS HERO MIGHT BE BOTHERED FOR AUTOGRAPHS IF SPOTTED SHOPPING AT A MALL JORDAN COULDN'T CONSIDER SETTING FOOT IN SUCH A PLACE ANYWHERE ON EARTH BECAUSE OF THE STIR IT WOULD CAUSE HERE WAS A MAN WHO WHEN HE VISITED THE CHICAGO RESTAURANT THAT BEARS HIS NAME HAD TO RETREAT TO A PRIVATE DINING ROOM IF HE WISHED TO EAT NOT ALL THE ATTENTION JORDAN RECEIVED HAD TO DO WITH HIS ONCOURT EXPLOITS HE MADE HIS HOBBY GOLF MORE EXPENSIVE THAN IT SHOULD HAVE BEEN BY WAGERING AND LOSING LARGE SUMS OF MONEY TO AMONG OTHERS AN INDIVIDUAL WITH A CRIMINAL RECORD AND A CALIFORNIAN WHO WROTE A BOOK ABOUT IT HIS UNHAPPINESS OVER QUESTIONS CONCERNING HIS GAMBLING REACHED A PEAK WHEN THEY WERE RAISED ALBEIT MOSTLY SOTTO VOCE IN CONNECTION WITH THE MURDER OF HIS FATHER JAMES IN NORTH CAROLINA IN JULY JORDAN DENIED ANY DIRECT LINK BETWEEN HIS RETIREMENT AND HIS FATHER'S DEATH SAYING THE MATTER CAUSED HIM ONLY TO PUT A DIFFERENT EMPHASIS ON LIFE BY SHOWING HIM THAT THE FUTURE CAN BE GONE AT ANY TIME BUT NO ONE COULD DOUBT THAT HE FEELS A LINGERING DEBILITATING SENSE OF LOSS JORDAN'S ANNOUNCEMENT WAS PARTICULARLY JARRING THOUGH BECAUSE IT WENT AGAINST THE PATTERN OF ATHLETES IN GENERAL AS WELL AS OUR NOTIONS ABOUT THE CHALLENGES SPORTS POSE INSTEAD OF OPTING FOR EARLY RETIREMENT MOST JOCKS FIND THEIR CAREERS SO FULFILLING THEY STRUGGLE TO PROLONG THEM PAST THE POINT WHERE GOOD SENSE DICTATES OTHERWISE THE EFFORTS OF BO JACKSON JORDAN'S FELLOW SHOE ENDORSER TO PLAY BIGLEAGUE BASEBALL WITH AN ARTIFICIAL HIP COME QUICKEST TO MIND ABOUT THE ONLY OTHER TOP ATHLETE WHO RETIRED IN HIS PRIME ANYWHERE NEAR RECENTLY WAS JIM BROWN THE OLD CLEVELAND BROWNS RUNNING BACK AND HIS IS A GAME IN WHICH PEOPLE KEEP TRYING TO TACKLE YOU JORDAN'S ASSERTION THAT HE WAS LEAVING HIS SPORT WHILE THE CHOICE WAS HIS NOT ANYONE ELSE'S LEFT MANY SCRATCHING THEIR HEADS NO ONE WATCHING HIS PERFORMANCES IN THIS YEAR'S NBA PLAYOFFS WHEN HE ALMOST SINGLEHANDEDLY CARRIED HIS TEAM TO VICTORY IN SEVERAL CRUCIAL GAMES WOULD SUGGEST THAT HIS SKILLS HAD DECLINED A WHIT MOREOVER ATHLETES AND FANS ALIKE DEFINE SPORTS GREATNESS AS MUCH IN TERMS OF DURABILITY AND RESOURCEFULNESS AS SHEER TALENT KAREEM ABDULJABBAR WAS AS MUCH APPRECIATED IN HIS LATER YEARS AS HIS EARLY ONES AND NOLAN RYAN MORE SO THAT IS WHY WEDNESDAY'S PROCEEDINGS HAD AN AIR OF UNREALITY ABOUT THEM ALL THOSE INVOLVED DUTIFULLY MUTTERED THAT THEY WERE IN ACCORD WITH JORDAN'S DECISION I'M ABSOLUTELY CONVINCED HE'S DOING THE RIGHT THING DECLARED STARCHY JERRY REINSDORF WHO AS THE BULLS' CHAIRMAN WAS HIS NOMINAL BOSS BUT THEY ALSO SEEMED TO BE WAITING FOR HIM TO GRIN AND SAY HEY I'M JUST KIDDING JORDAN HIMSELF CONTRIBUTED TO THIS ATMOSPHERE HE SAID HE'D DISCUSSED HIS MOVE WITH FAMILY TEAMMATES COACHES AND BUSINESS ASSOCIATES BUT DIDN'T MENTION THE ONE GROUP THAT COULD HAVE GIVEN HIM FIRSTHAND INFORMATION ON HIS NEWLY CHOSEN PATH MEN WHO'D RETIRED EARLY IF HE HAD HE MIGHT HAVE BEEN TOLD THAT WHILE GOLF IS FUN ON VACATIONS IT GETS OLD FAST AS AN EVERYDAY THING AND THAT THEIR WIVES MARRIED THEM FOR LIFE BUT NOT FOR LUNCH BY ALL ACCOUNTS JORDAN IS A RESTLESS COMPETITIVE PERSON NOT ONE TO SIT AND WATCH HIS GRASS GROW WITH AN ESTIMATED ANNUAL INCOME OF 35 MILLION ONLY ABOUT 4 MILLION OF WHICH CAME FROM HIS BASKETBALL PAY CHECK HE CAN AFFORD TO HIRE SOMEONE TO CUT IT IN ANSWER TO THE QUESTION OF WHETHER HE MIGHT SOMEDAY UNRETIRE HE WAS EQUIVOCAL SAYING HE DIDN'T WANT TO CLOSE THAT DOOR THE GUESS HERE IS THAT SPIRIT REFRESHED IN A YEAR OR SO HE'LL DECIDE THAT HE'D RATHER BE MIKE SOARING ON THE BASKETBALL COURTS AGAIN THAN JUST ANOTHER EARTHBOUND LIKE MIKE 9310080188 931008 WHO'S NEWS OWENSCORNING FIBERGLASS CORP OWENSCORNING FIBERGLASS CORP TOLEDO OHIO W ANN KING REYNOLDS 56 YEARS OLD WAS ELECTED A DIRECTOR OF THIS MAKER OF FIBERGLAS CONSTRUCTION PRODUCTS INCREASING THE BOARD SIZE TO 10 9310080187 931008 ENVIRONMENTALISTS WHITE HOUSE STRIKE ACCORD ON LOGGING BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION AND 12 ENVIRONMENTAL GROUPS STRUCK A DEAL MEANT TO ALLOW LOGGING IN SOME SPOTTEDOWL TERRITORY IN THE PACIFIC NORTHWEST THE PACT SEEKS TO PERMIT SOME 83 MILLION BOARD FEET OF TIMBER TO BE LOGGED IN FEDERAL FORESTS WHERE CUTTING IS CURRENTLY BANNED UNDER INJUNCTIONS ISSUED BY JUDGE WILLIAM DWYER OF US DISTRICT COURT IN SEATTLE THE BAN IS MEANT TO PROTECT THE SPOTTED OWL A THREATENED SPECIES UNDER THE ENDANGERED SPECIES ACT THE 12 ENVIRONMENTAL GROUPS WHICH INCLUDE NATIONAL HEAVYWEIGHTS LIKE THE WILDERNESS SOCIETY AND THE NATIONAL AUDUBON SOCIETY AS WELL AS NUMEROUS LOCAL ORGANIZATIONS ARE PLAINTIFFS IN CASES THAT RESULTED IN THE INJUNCTIONS UNDER THE DEAL THEY HAVE AGREED NOT TO OPPOSE A MOTION IN JUDGE DWYER'S COURT BY THE FOREST SERVICE TO PERMIT THE LOGGING IN RETURN THE CLINTON ADMINISTRATION HAS AGREED NOT TO SEEK LEGISLATION THAT WOULD INSULATE ITS NEW FOREST POLICY FROM COURT CHALLENGE THAT POLICY WHICH EMERGED FROM THE MUCHBALLYHOOED TIMBER SUMMIT IN PORTLAND ORE EARLIER THIS YEAR IS CONTROVERSIAL AMONG ENVIRONMENTALISTS THEY HAVE FEARED THAT THE ADMINSTRATION MIGHT WIN SUCH PROTECTIVE LEGISLATION THE DEAL FURTHERS ONE OF THE MAIN OBJECTIVES OF THE ADMINISTRATION'S NEW FOREST PLAN WHICH IS TO FREE UP SOME TIMBER TO HELP PRESERVE NORTHWESTERN LOGGING JOBS BUT IT IS NO PANACEA IT WAS IMMEDIATELY ATTACKED BY SOME ENVIRONMENTALISTS WHO COMPLAIN THAT THE LAND TARGETED FOR LOGGING CONTAINS SOME OF THE PRISTINE OLDGROWTH FOREST THAT HAS BEEN AT THE HEART OF THE TIMBER WARS SOME LOGGERS MEANWHILE DON'T THINK THE DEAL FREES UP ENOUGH TIMBER AND THERE IS NO GUARANTEE THAT JUDGE DWYER WILL APPROVE THE AGREEMENT THE LOGGING WOULDN'T BE ENVIRONMENTALLY BENIGN AND THE AGREEMENT SHOULD NOT BE SEEN IN ANY WAY AS AN ENDORSEMENT OF THE CLINTON FOREST PLAN SAID VIC SHER A SIERRA CLUB LEGAL DEFENSE FUND LAWYER WHO HAS BEEN ONE OF THE LEADERS OF THE LEGAL ASSAULT THAT RESULTED IN THE LOGGING BANS BUT IT PRESERVES CITIZENS' RIGHTS TO IMPROVE THE FOREST PLAN INCLUDING BY GOING TO COURT IF NECESSARY 9310080186 931008 INTERNATIONAL FRENCHGERMAN PHONE VENTURE SNATCHES A PACT WITH IBM AWAY FROM RIVAL BT BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IN A SIGN OF MOUNTING COMPETITION AMONG EUROPE'S BIG TELEPHONE COMPANIES A NEW JOINT VENTURE OF FRANCE TELECOM AND DEUTSCHE BUNDESPOST TELEKOM SNATCHED SOME PRIZE BUSINESS AWAY FROM ARCHRIVAL BRITISH TELECOMMUNICATIONS PLC THE FRANCOGERMAN VENTURE EUNETCOM SA SAID IT HAS A LETTER OF INTENT WITH INTERNATIONAL BUSINESS MACHINES CORP TO EXPAND THE US COMPUTER GIANT'S DATACOMMUNICATIONS NETWORK IN EUROPE FINAL TERMS OF THE CONTRACT ARE STILL UNDER NEGOTIATION AND ITS VALUE WASN'T DISCLOSED THE WORK ENTAILS INSTALLING AND MAINTAINING HIGHSPEED LINES TO CONNECT 40 ADDITIONAL IBM OFFICES IN EUROPE TO ITS EXISTING DATA NETWORK BESIDES CARRYING IBM'S INTERNAL COMMUNICATIONS THE EUROPEAN NETWORK GENERATES REVENUE OF AT LEAST 100 MILLION A YEAR FOR IBM BY CARRYING COMPUTER DATA FOR ITS CLIENTS THE ACCORD WHICH MAKES IBM THE FIRST CUSTOMER OF EUNETCOM REPRESENTS A SALES COUP FOR THE NEW VENTURE AND A POTENTIAL EMBARRASSMENT FOR BT AND ITS US PARTNER MCI COMMUNICATIONS INC LAST JUNE BT ANNOUNCED PLANS TO BUY A 43 BILLION MCI STAKE AND FORM AN INTERNATIONAL JOINT VENTURE WITH IT SPECIFICALLY TO EXPAND BOTH COMPANIES' BUSINESS WITH MULTINATIONALS LIKE IBM EVEN BEFORE THE MCI VENTURE IBM'S EUROPEAN OPERATIONS HAVE BEEN ONE OF THE BIGGEST CUSTOMERS OF BT'S MULTINATIONALSERVICES UNIT SYNCORDIA CORP AND SYNCORDIA MARKETING HAS OFTEN TRUMPETED IBM AS A PRIZED REFERENCE CUSTOMER LIKE MOST MULTINATIONALS IBM HAS SCORES OF COMMUNICATIONS CONTRACTS WITH NATIONALTELEPHONE COMPANIES BUT MAJOR CONTRACTS FOR MULTICOUNTRY SYSTEMS ARE EXPECTED TO GO INCREASINGLY TO TELECOMMUNICATIONS COMPANIES OR VENTURES THAT CAN PROVIDE ONESTOP SHOPPING FOR GLOBAL SERVICES BT WAS THE FIRST IN EUROPE TO OFFER SUCH SERVICES BUT EUNETCOM'S SUCCESS SHOWS THAT BRITISH TELECOM WILL NO LONGER HAVE THE FIELD TO ITSELF BT PLAYED DOWN THE SIGNIFICANCE OF THE EUNETCOM AGREEMENT ROBERT HARVEY SYNCORDIA'S VICE PRESIDENT FOR CUSTOMER OPERATIONS SAID IT WOULDN'T AFFECT BT'S EXISTING IBM CONTRACT HE SAID BT WASN'T INVITED TO BID FOR THE EXTRA IBM WORK PROBABLY HE SAID BECAUSE THE WORK REQUIRED A SMALLER PROPORTION OF INTERNATIONAL CIRCUITS THAN BT'S GLOBAL NETWORK IS BEST SUITED FOR MOST OF THE 40 IBM OFFICES INVOLVED IN THE EUNETCOM NEGOTIATIONS ARE IN GERMANY AND FRANCE THE ALLIANCE'S HOME TURF BUT AN IBM SPOKESMAN SAID THERE ARE ALSO LINKS TO OFFICES IN FOUR OTHER EUROPEAN NATIONS INCLUDING BT'S HOME COUNTRY WHEN ASKED WHY THE WORK WASN'T OFFERED TO BT THE IBM SPOKESMAN SAID THAT AS A GENERAL RULE WE PREFER TO HAVE MULTIPLE SUPPLIERS HE SAID IBM IS PERFECTLY HAPPY WITH BT'S SERVICES BUT NOW THAT NEW COMPETITORS LIKE EUNETCOM HAVE EMERGED IN EUROPE THE COMPANY CAN HAVE MORE OF A CHOICE INDEED IN THE PAST YEAR THE WHOLE LANDSCAPE OF THE EUROPEAN TELEPHONE INDUSTRY HAS STARTED CHANGING WHERE ONCE ITS MAIN PLAYERS STUCK QUIETLY TO THEIR OWN TURFS AND RARELY COMPETED THEY'RE NOW FORMING INTERNATIONAL JOINT VENTURES AND BEGINNING TO POACH EACH OTHER'S PRIZE CORPORATE CLIENTS JUST LAST MONTH UNISOURCE NV A THREEWAY JOINT VENTURE AMONG THE DUTCH SWISS AND SWEDISH PHONE COMPANIES CROWED OVER HAVING BEATEN BT FRANCE TELECOM AND SPRINT CORP IN A 10 MILLION SWEDISH KRONER 12 MILLION CONTRACT COMPETITION TO EXPAND SWEDISH AUTO MAKER AB VOLVO'S EUROPEAN NETWORK THE 5050 EUNETCOM VENTURE BETWEEN THE FRENCH AND GERMAN STATEOWNED TELEPHONE COMPANIES BEGAN OPERATIONS LAST MONTH AFTER MORE THAN A YEAR OF TORTUOUS NEGOTIATIONS BETWEEN PARIS AND BONN OVER ITS ORGANIZATION AND GOALS R CLAUDE OLIER EUNETCOM CHIEF EXECUTIVE SAID THE VENTURE CURRENTLY HAS ABOUT 20 EMPLOYEES BUT IS HIRING MORE HE SAID IT IS ASSEMBLING ITS OWN INTERNATIONAL NETWORK OF LINES AND SWITCHES OVER WHICH IT WILL CARRY IBM'S DATA TRAFFIC PLUS THAT OF FUTURE BIGBUSINESS CLIENTS 9310080185 931008 DIVIDEND NEWS PAYCHEX INC PAYCHEX INC ROCHESTER NY BOOSTED ITS QUARTERLY DIVIDEND TO SIX CENTS A SHARE FROM FOUR CENTS PAYABLE NOV 22 TO STOCK OF RECORD OCT 28 THE COMPANY SAID THE MOVE IS THE RESULT OF INCREASED EARNINGS OVER THE PAST TWO YEARS AND OUR CONFIDENCE IN THE FUTURE 9310080184 931008 MARKETING & MEDIA DOW JONES NET ROSE 51 IN THIRD QUARTER AD REVENUE IS CITED NEW YORK DOW JONES & CO SAID THIRDQUARTER NET INCOME ROSE 51 TO 297 MILLION OR 30 CENTS A SHARE LARGELY THE RESULT OF INCREASED ADVERTISING REVENUE AT THE WALL STREET JOURNAL AND MOST OF THE BUSINESS PUBLICATIONS SEGMENT A YEAR EARLIER NET WAS 196 MILLION OR 19 CENTS A SHARE THE PUBLISHING COMPANY SAID THE QUARTER ALSO REFLECTED IMPROVED OPERATING RESULTS IN THE INFORMATION SERVICES AND COMMUNITY NEWSPAPERS SEGMENTS AND LOWER INTEREST EXPENSE THIRDQUARTER PROFIT WAS REDUCED ABOUT 26 MILLION OR 25 CENTS A SHARE AS A RESULT OF A RISE IN THE FEDERAL CORPORATE INCOME TAX RATE RETROACTIVE TO JAN 1 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING DOW JONES ROSE 1625 TO 3525 CONSOLIDATED OPERATING INCOME CLIMBED 32 TO 679 MILLION WHILE REVENUE ROSE 7 TO 4687 MILLION OPERATING INCOME AT DOW JONES'S INFORMATION SERVICES SEGMENT WHICH INCLUDES RESULTS OF THE DOW JONES/TELERATE AND BUSINESS INFORMATION SERVICES GROUPS WAS 406 MILLION UP 13 FROM A YEAR EARLIER PARTLY BECAUSE OF A BENEFIT FROM FOREIGN EXCHANGE REVENUE ROSE 56 TO 2149 MILLION OPERATING INCOME AT OTTAWAY NEWSPAPERS DOW JONES'S COMMUNITY NEWSPAPER SUBSIDIARY ROSE 68 TO 83 MILLION WHILE REVENUE INCREASED 44 TO 615 MILLION ADVERTISING LINAGE AT OTTAWAY'S 21 DAILY NEWSPAPERS INCREASED 1 NET FOR THE FIRST NINE MONTHS WAS 1004 MILLION OR 101 A SHARE AN INCREASE OF 29 FROM 778 MILLION OR 77 CENTS A SHARE A YEAR EARLIER EARNINGS FOR THE FIRST NINE MONTHS OF 1992 WERE RESTATED TO REFLECT A ONETIME NET CHARGE OF 108 MILLION OR 11 CENTS A SHARE RESULTING FROM CHANGES IN ACCOUNTING FOR INCOME TAXES AND EMPLOYEES' POSTRETIREMENT BENEFITS EXCLUDING THE CHARGE FROM 1992 EARNINGS IN THE 1993 NINE MONTHS WERE UP 13 IN THE FIRST NINE MONTHS OPERATING INCOME INCREASED 69 TO 2149 MILLION ON A 58 REVENUE GAIN TO 142 BILLION DOW JONES PUBLISHES THE WALL STREET JOURNAL BARRON'S MAGAZINE AND OTHER PERIODICALS ELECTRONIC BUSINESS INFORMATION SERVICES INCLUDING DOW JONES/TELERATE AND COMMUNITY NEWSPAPERS 9310080182 931008 WHO'S NEWS TRANS WORLD AIRLINES TRANS WORLD AIRLINES MOUNT KISCO NY JOSEPH F HEALY JR FORMERLY SENIOR VICE PRESIDENT AND GENERAL COUNSEL OF PIEDMONT AVIATION INC WAS NAMED SENIOR VICE PRESIDENT GENERAL COUNSEL AND SECRETARY OF THIS AIRLINE MR HEALY 63 YEARS OLD SUCCEEDS JANET STEINMAYER WHO WAS TWA'S SENIOR VICE PRESIDENT EXTERNAL AFFAIRS AND GENERAL COUNSEL 9310080181 931008 SOLO SERVE SEPTEMBER SALES ROSE SAN ANTONIO SOLO SERVE CORP SAID SALES FOR THE FIVE WEEKS ENDED OCT 2 INCREASED 122 TO 122 MILLION FROM 109 MILLION A YEAR EARLIER SALES AT STORES OPEN A YEAR OR MORE DECREASED 75 THE OFFPRICE RETAILER SAID YEARTODATE SALES OR FOR THE FIRST 35 WEEKS ROSE 132 TO 1094 MILLION FROM 967 MILLION WHILE COMPARABLESTORE SALES FELL 55 9310080180 931008 LAW WHITE HOUSE URGES HIGH COURT TO UPHOLD TAX ON MULTINATIONALS WASHINGTON THE CLINTON ADMINISTRATION URGED THE SUPREME COURT TO DENY AN APPEAL CHALLENGING CALIFORNIA'S POLICY ON TAXING FOREIGNBASED MULTINATIONAL CORPORATIONS DURING HIS 1992 CAMPAIGN PRESIDENT CLINTON PROMISED CALIFORNIA OFFICIALS HE WOULD TAKE THE STATE'S SIDE IN THE CASE A RECENT CHANGE IN THE CALIFORNIA TAX CODE MADE IT EASIER FOR THE ADMINISTRATION TO DO THAT THE ADMINISTRATION'S ACTION YESTERDAY MAKES IT LESS LIKELY ALTHOUGH NOT OUT OF THE QUESTION THAT THE HIGH COURT WILL AGREE TO CONSIDER AN APPEAL FILED BY BARCLAYS BANK PLC OF BRITAIN CHALLENGING THE STATE TAX AT ISSUE IS CALIFORNIA'S POLICY OF TAXING SUBSIDIARIES OF FOREIGNBASED MULTINATIONALS BASED ON THE INCOME OF THE PARENT COMPANIES AND ALL CORPORATE AFFILIATES THIS SOCALLED WORLDWIDE COMBINED METHOD OF CALCULATING TAXES HAS PROVOKED PROTESTS FROM FOREIGN COMPANIES WITH OPERATIONS IN CALIFORNIA AS WELL AS THREATS OF RETALIATION BY ENGLAND AND OTHER US TRADING PARTNERS FOR YEARS THE US GOVERNMENT SAID CALIFORNIA'S UNUSUAL APPROACH WAS UNCONSTITUTIONAL AND INCONSISTENT WITH FEDERAL TAX POLICY THE FEDERAL GOVERNMENT AND MOST STATES TAX SUBSIDIARIES AS IF THEY ARE SEPARATE COMPANIES THE ADMINISTRATION WAS ABLE TO FULFILL MR CLINTON'S CAMPAIGN PROMISE WITHOUT ABANDONING THE GOVERNMENT'S LONGHELD POSITION THE CALIFORNIA LEGISLATURE UNDER PRESSURE FROM THE WHITE HOUSE RECENTLY PASSED CHANGES IN THE STATE'S TAX CODE THAT ALLOW FOREIGN MULTINATIONALS TO AVOID THE WORLDWIDE COMBINED APPROACH AS A RESULT OF THESE CHANGES THE ADMINISTRATION ARGUED THERE ISN'T A NEED FOR THE SUPREME COURT TO HEAR THE BARCLAYS APPEAL BARCLAYS HASN'T ABANDONED THE APPEAL THOUGH AND THE BRITISH GOVERNMENT STILL ARGUES THAT THE SUPREME COURT SHOULD TAKE THE CASE TO PROHIBIT USE OF THE WORLDWIDE COMBINED METHOD 9310080179 931008 TREASURY EPA FACE OFF OVER PROPOSAL TO SHIFT COSTS OF SUPERFUND CLEANUP BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TREASURY AND THE ENVIRONMENTAL PROTECTION AGENCY HAVE GONE TO WAR OVER PROPOSED CHANGES TO THE SUPERFUND PROGRAM AT ISSUE IS A TREASURY PLAN TO REWRITE THE SUPERFUND LAW WHICH GOVERNS CLEANUP OF THE NATION'S WORST HAZARDOUSWASTE SITES THE TREASURY INITIATIVE WOULD SHIFT SOME CLEANUP COSTS FROM COMPANIES THAT MAY BE ONLY TANGENTIALLY RESPONSIBLE AND FROM THOSE THAT HAVEN'T DONE ANY DUMPING IN THE PAST SEVERAL YEARS THE FEDERAL GOVERNMENT WOULD PICK UP THE BURDEN AND MIGHT LEVY NEW FEES ON CERTAIN INDUSTRIES TO RAISE THE NEEDED MONEY THE PLAN SUBMITTED TO AN INTERAGENCY TASK FORCE THAT IS EXPECTED TO PRODUCE A SUPERFUNDREFORM PACKAGE SOMETIME NEXT MONTH WAS SPEARHEADED BY ALICIA MUNNELL ASSISTANT SECRETARY FOR ECONOMIC POLICY TREASURY SECRETARY LLOYD BENTSEN PERSONALLY HAS APPROVED IT AND RECENTLY RESOLVED TO PRESS AHEAD IN THE FACE OF STRONG OPPOSITION FROM THE EPA HOUSE ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL D MICH AND THE CHEMICAL MANUFACTURERS ASSOCIATION WHICH FEARS THAT THE PLAN WOULD BE FINANCED THROUGH HIGHER TAXES ON CHEMICAL COMPANIES IN AN ODD REVERSAL OF ROLES OFFICIALS AT THE EPA ARE COMPLAINING THAT THE TREASURY'S PLAN WOULD BE A BUDGETBUSTER COSTING TAXPAYERS AS MUCH AS 15 BILLION OVER 10 YEARS BUT THE TREASURY CONTENDS THAT THE SUPERFUND LAW FORMALLY KNOWN AS THE COMPREHENSIVE ENVIRONMENTAL RESPONSE COMPENSATION AND LIABILITY ACT CREATES ENORMOUS ECONOMIC UNCERTAINTY BY IMPOSING POTENTIALLY RUINOUS COSTS IN A CAPRICIOUS MANNER I THINK IN THE END THIS PROPOSAL WOULD NOT COST MONEY TO THE FEDERAL TREASURY MS MUNNELL SAID YESTERDAY BECAUSE IT WILL BE SELFFINANCING THE PROPOSAL AS CURRENTLY WRITTEN DOESN'T INCLUDE ANY PLAN TO RAISE REVENUE BUT MS MUNNELL SAID SUCH A PLAN IS BEING DEVELOPED THE TREASURY PROPOSAL WHICH HAS WON THE SUPPORT OF THE INSURANCE INDUSTRY IS SET TO BE DISCUSSED AT AN INTERAGENCY MEETING TUESDAY MEANWHILE BOTH SIDES ARE FURIOUSLY LOBBYING OTHER ADMINISTRATION OFFICIALS TO JOIN IN THE FRAY THE TREASURY PLAN CALLS FOR ELIMINATION OF JOINT AND SEVERAL LIABILITY A CONTROVERSIAL LEGAL MECHANISM IN THE PRESENT LAW THAT CAN REQUIRE A BUSINESS TO ASSUME FULL RESPONSIBILITY FOR CLEANING UP A WASTE SITE EVEN IF IT WAS JUST ONE OF SEVERAL POLLUTERS THE PLAN ALSO WOULD EXEMPT FROM CLEANUP REQUIREMENTS ALL ACTIONS BY COMPANIES PRIOR TO 1980 OR SOME OTHER APPROPRIATE DATE THOUGH PASSED IN 1980 THE SUPERFUND LAW CURRENTLY APPLIES EVEN TO DUMPING THAT OCCURRED LEGALLY BEFORE 1980 THE TREASURY IS VAGUE ABOUT WHEN THE APPROPRIATE CUTOFF DATE SHOULD BE APPARENTLY BECAUSE OFFICIALS WANTED TO ALLOW FOR POSSIBLE ADOPTION OF A SCHEME PROPOSED BY THE INSURANCE INDUSTRY TO EXEMPT DUMPING THAT OCCURRED BEFORE 1987 WHEN THE EPA INITIATED MORE THOROUGH RECORDKEEPING ON HAZARDOUSWASTE DUMPING MEMBERS OF THE NATIONAL ENVIRONMENTAL TRUST FUND PROJECT A COALITION OF INSURANCE COMPANIES THAT SUPPORTS THE TREASURY PLAN MET WITH MR BENTSEN WEDNESDAY TO SUGGEST ROUGHLY 1 BILLION IN NEW TAXES TO PAY FOR IT INCLUDING A DOUBLING OF SUPERFUND'S CORPORATE ENVIRONMENTAL TAX AN INCOME TAX LEVIED ON ALL COMPANIES ABOVE A CERTAIN SIZE 100 MILLION IN NEW TAXES ON SMALL BUSINESS AND 300 MILLION IN NEW TAXES ON THE INSURANCE INDUSTRY ITSELF MEANTIME EPA OFFICIALS HAVE BEEN MEETING AT A HOTEL IN ALEXANDRIA VA THIS WEEK TO HAMMER OUT THEIR OWN SUPERFUND PROPOSAL WHICH WILL MAINTAIN JOINT AND SEVERAL LIABILITY AND RETROACTIVITY THE EPA PLAN IS EXPECTED TO ALLOW FOR GREATER APPORTIONMENT OF LIABILITY AMONG SEVERAL COMPANIES THROUGH FEDERAL ARBITRATORS A CHANGE THAT WOULD REDUCE THE POTENTIAL RISKS TO INDIVIDUAL COMPANIES TOTAL ELIMINATION OF JOINT AND SEVERAL LIABILITY AND RETROACTIVITY AN EPA OFFICIAL SAID IS NOT FEASIBLE 9310080178 931008 SOUTH AFRICAN VEHICLE SALES RISE JOHANNESBURG SOUTH AFRICAN NEW VEHICLE SALES IN SEPTEMBER GREW 73 TO 26954 UNITS FROM 25121 UNITS A YEAR EARLIER THE NATIONAL ASSOCIATION OF AUTOMOBILE MANUFACTURERS SAID SALES IN SEPTEMBER WERE UP SLIGHTLY FROM AUGUST'S 26719 UNITS PASSENGER VEHICLE SALES WERE UP 12 TO 17756 UNITS FROM 15820 UNITS WHILE SALES OF COMMERCIAL VEHICLES DROPPED 11 TO 9198 UNITS FROM 9301 UNITS 9310080177 931008 INTERNATIONAL WORLD ECONOMY FREETRADE FOES BLAME COMPETITION FOR EROSION OF STANDARDS OF LIVING BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ONE THING ABOUT GLOBAL COMPETITION IS CLEAR THERE IS FAR TOO MUCH OF IT SO TOO WITH WORLD PRODUCTION AND INTERNATIONAL TRADE SUCH THOUGHTS ARE HERESY TO MAINSTREAM ECONOMISTS BUT THEY ARE GAINING CREDIBILITY IN MANY NATIONS THESE DAYS AS THE INDUSTRIAL WORLD TRIES TO ESCAPE FROM THE SLOW OR NO GROWTH THAT PLAGUES IT AND THIS MOOD OF PESSIMISM EVEN DEFEATISM MAKES TROUBLE FOR THOSE WHO WANT TO INVIGORATE FLOUNDERING ECONOMIES BY ACTUALLY EXPANDING FOREIGN COMMERCE AND COMPETITION IN OTHER WORDS BY APPLYING AS CURE PRECISELY THAT WHICH OPPONENTS CALL THE DISEASE THIS NEGATIVE VIEW IS ESPECIALLY APPEALING TO FOES OF THE PENDING NORTH AMERICAN FREE TRADE AGREEMENT AND A BROADER PACT SOUGHT BY THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN ESSENCE THEY CLAIM CHEAP GOODS FROM FOREIGN LANDS HELP CAUSE THE PROBLEMS WITH EVEN MORE JOBS DESTROYED AND LIVING STANDARDS ERODED IF GLOBAL TRADE RULES ARE RELAXED NAFTA WILL ACCELERATE THE LOSS OF MANUFACTURING JOBS IN THE UNITED STATES WARNS ROSS PEROT THE PACT'S MOST VISIBLE FOE NO PRODUCT NO COMPANY AND NO COMMUNITY IS IMMUNE FROM THE EFFECTS OF NAFTA SUCH VIEWS MAY BE WRONG BUT THEY AREN'T IRRATIONAL SOMETHING STRANGE IS HAPPENING IN THE INDUSTRIAL WORLD'S ECONOMY RECOVERY IS EITHER SLOW OR NONEXISTENT AND LIVING STANDARDS HAVE STOPPED RISING IN WAYS THAT PEOPLE ONCE TOOK FOR GRANTED IN THE US FOR EXAMPLE EMPLOYMENT LEVELS HAVE STAYED RELATIVELY STRONG BUT REAL WAGES OF NONSUPERVISORY WORKERS HAVE DROPPED 13 IN THE PAST 20 YEARS REAL WAGES IN THE EUROPEAN COMMUNITY BY CONTRAST HAVE SHOWN MODEST INCREASES BUT THE JOBLESS RATE IS NEAR 11 AND RISING NOWHERE DOES A STRONG BROADBASED AND JOBCREATING UPTURN SEEM TO BE EITHER IN PROGRESS OR TAKING SHAPE LAMENTS JEANCLAUDE PAYE SECRETARYGENERAL OF THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT AN OFFICIAL GROUPING OF THE MAIN INDUSTRIAL NATIONS SO WHEN THE NEWLY DISPLACED OR NEWLY POOR SEEK SCAPEGOATS MANY PICK INTENSIFIED COMPETITION FROM OVERSEAS PRODUCERS A RESULT OF VASTLY EXPANDED WORLD TRADE AND THEY DEMAND PROTECTION OF THE KIND THAT MOST GOVERNMENTS BELIEVERS IN FREER TRADE CONSIDER EXACTLY WRONG YET PROTECTIONISTS MAY HAVE A POINT ONE THING WHICH HAS PROBABLY CHANGED MORE THAN ANY OTHER IS THE INTENSITY OF COMPETITION SAYS MR PAYE CITING ADVERSE PAY AND EMPLOYMENT TRENDS HE NOTES THESE TWO EXPERIENCES ARE BOTH WORRYING AND THEY PROMPT ONE TO ASK WHETHER COMPETITION THE TRADITIONAL ENGINE OF PROGRESS AND GENERATOR OF OPPORTUNITIES MAY NOT HAVE LOST SOME OF ITS ATTRIBUTES THIS REFLECTS A HISTORICAL CHANGE IN PAST YEARS EXPLAINS NEAL SOSS MANAGING DIRECTOR AND CHIEF ECONOMIST FOR FIRST BOSTON CORP HALF THE WORLD'S POPULATION VOLUNTEERED TO STAY OUT OF THE WORLD ECONOMY BEHIND THE IRON CURTAIN THE BAMBOO CURTAIN AND SO FORTH A HUGE PRODUCTION POTENTIAL VOLUNTEERED TO REMAIN UNPRODUCTIVE WESTERN WORKERS GAINED A MIDDLECLASS LIFESTYLE HE CONTINUES COMPLETE WITH PRIVATE HOMES AUTOS AND KIDS IN LOCAL COLLEGES BUT NOW CHINA RUSSIA INDIA AND OTHERS WANT IN THIS MEANS THE PROLETARIAT HE SAYS USING MARXIST JARGON TO MAKE HIS POINT FACES NEW COMPETITION AND ITSEOIS STATUS IS AT RISK AND THAT FEEDS AN ANXIETY THAT LEADS TO WHAT MAINSTREAM ECONOMISTS CONSIDER THE WRONG POLICY CHOICES FEAR BEING A POOR COUNSELOR THE ALREADY DANGEROUSLY STRONG PRESSURES BEING EXERTED BY THOSE WHO FIND PERSUASIVE CHARMS IN INFLATION COMPETITIVE DEVALUATION AND PROTECTIONISM ARE LIABLE TO INCREASE MR PAYE WARNS ANALYSTS FIND THIS DEFENSIVE APPROACH MISGUIDED ON TWO COUNTS FIRST THEY SAY INCREASED GLOBAL TRADE PRODUCTION AND COMPETITION AREN'T RESPONSIBLE FOR WHAT'S GONE WRONG FOR EXAMPLE EXTENSIVE RESEARCH BY ROBERT Z LAWRENCE OF HARVARD SUGGESTS US WAGE AND JOB PROBLEMS STEM MOSTLY FROM ITEMS SUCH AS SLOW PRODUCTIVITY GROWTH IN SERVICES TECHNOLOGY CHANGES AND HOUSING'S HIGH COST THE ROLE OF TRADE HAS BEEN SURPRISINGLY SMALL HE CONCLUDES SECOND ECONOMISTS BELIEVE EXPANDING WORLD TRADE FURTHER IS ESSENTIAL THEY SAY INDUSTRIAL STATES SHOULD WELCOME CHEAP FOREIGN GOODS USE THEIR OWN RESOURCES FOR OTHER NEEDS AND EXPORT MORE TO THE DEVELOPING WORLD IT IS LARGELY INTERNATIONAL TRADE THAT HAS BROUGHT ECONOMIC GROWTH SAYS MR PAYE SUCH UNGLAMOROUS VIEWS ARE A HARD SELL WHEN ANXIETY AND FEAR HELP SET THE POLITICAL MOOD YET IF TRADING NATIONS DON'T ENCOURAGE THEIR MOST COMPETITIVE SECTORS WARNS ONE ECONOMIST WE RISK SHOOTING OURSELVES IN OUR BEST FOOT FORWARD 9310080176 931008 ATMEL PROFIT SOARS SAN JOSE CALIF ATMEL CORP CITING STRONG DEMAND FOR ITS SEMICONDUCTOR CHIPS SAID THIRDQUARTER PROFIT MORE THAN DOUBLED THE CHIP MAKER SAID NET INCOME ROSE TO 83 MILLION OR 40 CENTS A SHARE FROM 38 MILLION OR 21 CENTS A SHARE THE YEAR BEFORE SALES ROSE 60 TO 59 MILLION FROM 37 MILLION ATMEL'S SHARES ROSE 2375 OR 73 TO 38125 IN NATIONAL OVERTHECOUNTER TRADING YESTEDAY 9310080175 931008 CANADIAN STEEL OUTPUT DECLINES OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 262168 METRIC TONS IN THE WEEK ENDED OCT 2 A 3 DECLINE FROM 270209 TONS THE PREVIOUS WEEK AND A 79 DECLINE FROM 284637 TONS A YEAR EARLIER SAID STATISTICS CANADA A GOVERNMENT AGENCY A METRIC TON IS EQUAL TO ABOUT 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 10830132 TONS A 49 INCREASE FROM 10325447 TONS A YEAR EARLIER 9310080174 931008 VALUE CITY SALES RISE COLUMBUS OHIO VALUE CITY DEPARTMENT STORES INC SAID SALES FOR THE FIVE WEEKS ENDED SATURDAY INCREASED 91 TO 851 MILLION FROM 78 MILLION A YEAR EARLIER COMPARABLESTORE SALES ROSE 76 SALES FOR THE NINE WEEKS ENDED SATURDAY ROSE 43 TO 1515 MILLION FROM 1452 MILLION A YEAR EARLIER SAMESTORE SALES WERE UP 25 FOR THE NINE WEEKS 9310080173 931008 INTERNATIONAL ECONOMIC WOES THREATEN STATUS OF JAPAN LABOR BY MASAYOSHI KANABAYASHI STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S ECONOMIC MALAISE IS BEGINNING TO DISTURB THIS NATION'S NORMALLY MEEK LABOR MOVEMENT AS DELEGATES GATHERED HERE THURSDAY FOR THE NATIONAL CONVENTION OF LABOR UNIONS THE MOOD WAS AS BLEAK AS THE NEWS FROM THE CORPORATE SECTOR EARNINGS DOWNGRADES AND OVERCAPACITY ARE LEADING SOME COMPANIES TO CURB HIRING ELIMINATE OVERTIME AND EVEN CONSIDER CUTTING SUCH FIXTURES AS THE CHERISHED WINTER BONUS WE'VE HAD SEVERE RECESSIONS BEFORE BUT THIS IS THE TOUGHEST SAID MASUKICHI ESUMI A TEXTILEWORKERS REPRESENTATIVE AS HE ENTERED THE CONFERENCE HALL OF RENGO JAPAN'S EIGHTMILLIONMEMBER TRADE UNION CONFEDERATION JAPAN'S UNIONS HAVE A HISTORY OF COOPERATING CLOSELY WITH MANAGEMENT IN EXCHANGE FOR JOB SECURITY AND DEPENDABLE RAISES BUT THE ECONOMIC DOWNTURN IS PUTTING PRESSURE ON THAT ARRANGEMENT WHILE THE UNIONS APPEAR SYMPATHETIC TO THE COMPANIES' PLIGHT SOME LABOR CHIEFS SAY THEY ARE PREPARING FOR UNUSUALLY TOUGH NEGOTIATIONS WITH MANAGEMENT THEY NEXT WILL HAVE TO BRACE THEIR RANKANDFILE MEMBERS FOR REDUCED WINTER BONUSES AND RAZORTHIN PAY INCREASES NEXT SPRING AS THE CONCLAVE OPENED THURSDAY THE UNIONS CALLED ON GOVERNMENT TO HELP RENGO'S CHAIRMAN AKIRA YAMAGISHI DEMANDED THAT THE GOVERNMENT TAKE DECISIVE ECONOMIC MEASURES INCLUDING A BIG INCOMETAX CUT TO OVERCOME JAPAN'S ECONOMIC WOES A PROTRACTED RECESSION HE WARNED IS CREATING EMPLOYMENT FEARS AMONG WORKERS HE ALSO ATTACKED SOME EMPLOYERS FOR SUGGESTING THAT WORKERS MAY NEED TO ACCEPT A PAY CUT OR HAVE NO JOB AT ALL NOT THAT WORKERS AREN'T ALREADY SCARED AUTO MAKERS TOYOTA MOTOR CORP NISSAN MOTOR CO AND MAZDA MOTOR CORP ARE ALL EXPECTED TO REOPEN THEIR AGREEMENTS WITH THE UNIONS AND TO PRESS FOR REDUCED WINTERBONUS PAYMENTS FOR THE FIRST TIME SINCE THE LATE 1960S IF THE AUTO MAKERS SUCCEED OTHER INDUSTRIES ARE LIKELY TO FOLLOW SUIT OVERALL CORPORATE EARNINGS ARE PROJECTED TO DECLINE FOR THE FOURTH CONSECUTIVE YEAR AND COMPANIES ARE DESPERATE TO CUT COSTS SALARIED WORKERS' EARNINGS LAST YEAR ROSE AN AVERAGE OF 19 THE SLOWEST PACE IN 34 YEARS THAT MAY BE FOLLOWED BY AN EVEN WORSE PERFORMANCE THIS YEAR FOR NOW MANY UNION LEADERS SEEM WILLING TO MAKE WAGE CONCESSIONS TO KEEP JOB SECURITY MR ESUMI A 25YEAR VETERAN OF LABOR NEGOTIATIONS SAID HIS UNION IS READY TO BLEED IN ORDER TO ENHANCE PRODUCTIVITY AND IS UNLIKELY TO UNDERTAKE A DEBILITATING STRIKE OTHERS THOUGH SAID JAPAN'S TRADITIONAL LABORMANAGEMENT COOPERATION MAY NOT BE ENOUGH TO SEE THE COUNTRY OUT OF ITS DOWNTURN THERE ARE TOO MANY PROBLEMS LABOR AND MANAGEMENT ALONE CAN'T SOLVE THROUGH NEGOTIATIONS SAID TOSHIHIDE OKIZAWA ANOTHER LABOR LEADER 9310080172 931008 MULTIMEDIA AT KNOWLEDGE ADVENTURE TINY CHIRPS HAVE QUICKLY TURNED INTO MIGHTY ROARS BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL LA CRESCENTA CALIF IMAGINE A COMPUTERSIMULATED FLIGHT ACROSS THE US WITH MOUNTAINS PLAINS AND CITIES SWEEPING BY AT THE WILL OF THE OPERATOR BILL GROSS NOT ONLY IMAGINES THAT HE SEES IT AS A DISTINCT POSSIBILITY FOR THE NEAR FUTURE WHILE TELECOMMUNICATIONS AND ENTERTAINMENT INDUSTRY EXECUTIVES PONDER AN INTERACTIVE WORLD MANY EXPECT TO EMERGE BY THE END OF THE DECADE MR GROSS THINKS IN SHORTER TERMS AND WHY NOT HIS COMPANY KNOWLEDGE ADVENTURE INC IS ALREADY SELLING COMPUTER PROGRAMS THAT MIX SOUND WITH PICTURES AND INTERACT WITH USERS IN ELABORATE WAYS THREE MONTHS IS A LIFETIME TO US SAYS MR GROSS WHO IS 35 YEARS OLD NOW TWO OR THREE WEEKS THAT'S A WORKABLE SPAN OF TIME MULTIMEDIA THESE DAYS IS MUCH LIKE THE FIRST YEARS OF CINEMA WHEN ONEREELERS GRADUALLY EVOLVED INTO EXPENSIVE FEATURE FILMS WE ARE IN THE MIDDLE OF ONE GREAT PERIOD OF EXPERIMENTATION A MERGER OF ARTS AND TECHNOLOGY SAYS BRUCE RYON PRINCIPAL ANALYST IN CHARGE OF MULTIMEDIA RESEARCH AT DATAQUEST INC CONSULTANTS KNOWLEDGE ADVENTURE IS IN THE FOREFRONT OF THE EXPERIMENTATION THE COMPANY BEGAN TWO YEARS AGO WHEN MR GROSS ONCE A WUNDERKIND OF BUSINESSORIENTED SOFTWARE AT LOTUS DEVELOPMENT CORP WAS CASTING ABOUT FOR SOMETHING DIFFERENT WORKING AT FIRST IN A BEDROOM AT HOME MR GROSS AND A SMALL GROUP OF FELLOW TECHIES PRODUCED KNOWLEDGE ADVENTURE SOFTWARE THAT PROVIDED AN AMBITIOUS IF ABBREVIATED TOUR OF WESTERN THOUGHT EVERYTHING FROM THE ORIGINS OF THE UNIVERSE TO THE DEATH OF SHERLOCK HOLMES KNOWLEDGE ADVENTURE THE PROGRAM WAS AIMED AT CHILDREN AS YOUNG AS FIVE BUT APPEALED MORE TO OLDER CHILDREN AND ADULTS AND IT QUICKLY DREW ADMIRING REVIEWS IN THE COMPUTER WORLD WHERE ITS INTERLINKED PICTURES AND BITS OF SOUND SET IT APART WITHIN MONTHS MR GROSS AND HIS SMALL GROUP DECIDED TO IMPROVE THE PRODUCT DEVELOPING NEW TECHNOLOGY THAT MADE ITS PICTURES MORE REALISTIC SINCE THEN KNOWLEDGE ADVENTURE HAS MARKETED EIGHT OTHER PROGRAMS INCLUDING SCIENCE ADVENTURE SPACE ADVENTURE DINOSAUR ADVENTURE AND MOST RECENTLY A CHILDREN'S ZOO PROGRAM ENRICHING EACH WITH MORE MUSIC SOUNDS AND MOTION PICTURES KNOWLEDGE ADVENTURE'S OFFICES IN A DUSTY COMMERCIAL SECTION OF THIS LOS ANGELES SUBURB OCCUPY A WARREN OF ROOMS IN AN UNDISTINGUISHED BUILDING IN THE ONE OPEN AREA WHERE NEW PRODUCTS ARE DESIGNED MORE THAN A DOZEN PEOPLE HOVER OVER PERSONAL COMPUTERS INTERRUPTING THEIR KEYTAPPING OCCASIONALLY FOR CONVERSATIONS ABOUT SCREEN PIXEL ALIGNMENT OR FRENCH IMPRESSIONISM WE HAVE WRITERS ARTISTS AND NERDS HERE SAYS ROBERT WRUBEL A ONETIME FINANCIAL WRITER AND NOW A DEVELOPER OF NEW PRODUCTS AT KNOWLEDGE ADVENTURE INDEED THE COMPANY'S RANKS WITH AN AVERAGE AGE A LITTLE OVER 30 INCLUDE FORMER REPORTERS TELEVISION WRITERS PRODUCERS A PHYSICIST AND COMPUTER ENGINEERS TONI WEINGARTEN'S FOOD FOR THOUGHT ON A RECENT DAY WAS BAKED BEANS AT WORK ON A FORTHCOMING PROGRAM ON THE AMERICAS MS WEINGARTEN GAZES AT A COLORFUL PICTURE OF A SIMMERING POT AND CONSIDERS THE POSSIBILITIES IT SEEMS TO ME THAT ONE WAY TO LOOK AT AMERICA IS THROUGH ITS FOOD SAYS THE FORMER TELEVISION PRODUCER PLANNING A SERIES OF PANELS OF PICTURES AND TEXT AS WELL AS SOUND THAT WILL EXPLAIN WHY BOSTON IS SOMETIMES CALLED BEANTOWN AND WHY COWBOYS OFTEN COOKED WITH CHILIS PUTTING THIS TOGETHER WILL BE MORE COMPLICATED THAN IT SOUNDS A CONVENTIONAL BOOK MIGHT PRESENT THE TOPICS ONE AFTER ANOTHER SAY BEANS BEFORE CHILI IN A CHAPTER CALLED AMERICAN FOOD NOT SO WITH MULTIMEDIA WE'VE ALL BEEN TAUGHT TO THINK LINEARLY MS WEINGARTEN SAYS NOW WE HAVE TO LEARN SOMETHING VERY DIFFERENT INTERACTIVE PROGRAMMING DOESN'T WORK IN A STRAIGHT LINE BUT AS A SERIES OF BRANCHES THAT ENCOURAGE USERS TO MOVE FROM SUBJECT TO SUBJECT MS WEINGARTEN'S PROGRAM FOR INSTANCE SOON WILL ALLOW USERS TO CLICK ON A PICTURE OF BREAD AND THEN JUMP TO INFORMATION ABOUT WHEAT FARMING OR EVEN CALIFORNIA GOLD MINERS WHO ATE SOURDOUGH BREAD THE PROCESS IS LIKE WRITING A BOOK ILLUSTRATING IT AND THEN THROWING ALL THE PAGES IN THE AIR FOR READERS TO PUT BACK TOGETHER THE WAY THEY LIKE SAYS THE DESIGNER YET THE HUNDREDS OF PAGES OF THIS BOOK CAN'T FLUTTER DOWN IN AN ENTIRELY RANDOM WAY PART OF THE LEARNING PROCESS FOR PROGRAMMERS HAS BEEN TO FIGURE OUT HOW MANY WAYS THE PAGES SHOULD GO TOGETHER PEOPLE DON'T WANT TO BE CONFUSED OR PRESENTED WITH TOO MANY CHOICES SAYS BRADLEY HAUGAARD WHO HAS HAD A HAND IN DEVELOPING MUCH OF KNOWLEDGE ADVENTURE'S SOFTWARE THE FIRST KNOWLEDGE ADVENTURE PROGRAM CONTAINED NO MOVEMENT AND LITTLE MORE THAN A FEW CHIRPS OF SOUND BUT DINOSAUR ADVENTURE OFFERS BEASTS THAT FIGHT AND ROAR A COMPETING PROGRAM FROM MICROSOFT CORP INTRODUCED THIS SUMMER CONTAINS EVEN MORE ELABORATE MOVIES AND SOUND THE ANTE KEEPS GOING UP NOTES MR GROSS INCREASING USE OF CDROMS COMPACT DISKS THAT CARRY VAST AMOUNTS OF COMPUTER INFORMATION PERMIT PROGRAMS TO OFFER MORE MOVEMENT AND SOUND THAN EVER KNOWLEDGE ADVENTURE PRODUCTS WILL SOON INCLUDE NONLINEAR MOVIES IN WHICH USERS CONTROL SCENES INCLUDING A MANEUVERABLE SKULL A SKELETON THAT EVOLVES FROM EARLY TO MODERN MAN AND A ROLLER COASTER THAT'S JUST THE START AS THE SCREEN IN FRONT OF DESIGNER LEONARD MLODINOW SUGGESTS ROOMS WHOSE BRIGHTLYCOLORED WALLS FEATURE PORTRAITS OF FAMOUS SCIENTISTS MOVE IN THREEDIMENSIONAL PERSPECTIVE AS HE MANIPULATES A MOUSE THE VIEWER HEADS TO A DOOR THAT SEEMS TO LEAD OUT OF THE ROOM ONLY TO FIND THAT HE HAS ENTERED THE SAME ROOM FROM ANOTHER SIDE THESE ROOMS REPRESENT A MAZE OF EINSTEIN'S MIND SAYS MR MLODINOW WHOSE DOCTORATE IN ELEMENTARY PARTICLE PHYSICS WAS FOLLOWED BY SIX YEARS OF TV SCRIPT WRITING ON SUCH SHOWS AS STAR TREK AND NIGHT COURT DEVELOPING EVERMORE ELABORATE FEATURES MEANS THAT EXISTING PRODUCTS MUST BE REVAMPED EVERY NINE MONTHS OR SO SAYS MR GROSS THAT OFTEN AMOUNTS TO NEARLY A WHOLE NEW PROGRAM COSTS ARE JUMPING KNOWLEDGE ADVENTURE NOW AVERAGES ABOUT 125000 TO DEVELOP A PROGRAM MEANWHILE YESTERDAY'S FRONTIER IS TODAY'S BATTLEGROUND A YEAR AGO THIS WAS A NICE NICHE WITH A FEW PEOPLE IN IT NOTES JONATHAN D FEIBER A PARTNER WITH MOHR DAVIDOW VENTURES AN INVESTMENT GROUP IN MENLO PARK CALIF AND AN EARLY INVESTOR IN KNOWLEDGE ADVENTURE THAT HAS DRAMATICALLY CHANGED IN THE LAST FEW MONTHS THE EDUCATIONALSOFTWARE BUSINESS IS ATTRACTING SUCH COMPETITORS AS MICROSOFT SEGA ENTERPRISES LTD AND NINTENDO CO AS WELL AS INTEREST FROM HOLLYWOOD IN THE NEXT FIVE YEARS OUR BIGGEST WORRIES ARE GOING TO BE THE MOVIE COMPANIES SAYS MR GROSS OUTSIDERS ESTIMATE THAT THE CLOSELY HELD COMPANY'S REVENUE THIS YEAR WILL TOTAL AROUND 10 MILLION AND THAT IT IS MODESTLY PROFITABLE THE PAYROLL SINCE THE START OF THE YEAR HAS DOUBLED TO ABOUT 70 EMPLOYEES THOUGH RELATIVELY SMALL THE COMPANY HAS TWO LARGE INVESTORS AMERICAN TELEPHONE & TELEGRAPH CO AND PARAMOUNT COMMUNICATIONS INC RECENTLY ACQUIRED SMALL STAKES BY CHRISTMAS KNOWLEDGE ADVENTURE PLANS TO INTRODUCE HALF A DOZEN NEW PROGRAMS DEALING WITH SUCH TOPICS AS AMERICAN CULTURE AND OCEANOGRAPHY ONE PROBLEM HOWEVER IS THAT DEMAND FOR EDUCATIONAL SOFTWARE RELIES ON A LIMITED GROUP OF PARENTS WHOSE INCOME ALLOWS THEM TO HAVE FANCY COMPUTERS AT HOME ANALYSTS ESTIMATE THAT ROUGHLY 26 MILLION HOUSEHOLDS OR ABOUT A QUARTER OF TOTAL HOUSEHOLDS HAVE PERSONAL COMPUTERS ONLY A FRACTION HOWEVER HAVE COMPUTER SOUND EQUIPMENT CDROM DRIVES AND OTHER GIZMOS THAT MAKE ADVANCED MULTIMEDIA SOFTWARE WORK AT ITS BEST IN HOPES OF BROADENING THE MARKET KNOWLEDGE ADVENTURE WILL SOON LAUNCH A 1 MILLION ADVERTISING CAMPAIGN AIMED AT PARENTS ITS MESSAGE KIDS WILL BE KIDS YOURS WILL BE THE SMART ONES 9310080171 931008 FAR FROM FIGHTING IN MOGADISHU HOPE IS BEING RESTORED IN TOWN OF BELET WEYNE CHAOS HAS GIVEN WAY TO SCHOOL WELL BABIES AND DR TAHLIL BY GERALDINE BROOKS STAFF REPORTER OF THE WALL STREET JOURNAL BELET WEYNE SOMALIA SITTING AT A TIDY DESK IN HIS FRESHLY PAINTED OFFICE DR TAHLIL FARAH PUTS THE FINAL TOUCHES TO A REPORT ON THE NETWORK OF HEALTH CLINICS HE MANAGES HIS REPORT BEGINS NOW THAT THE EMERGENCY IS OVER AND SECURITY IMPROVED WE NEED TO MOVE TO PREVENTIVE CARE OUTSIDE IN A MAKESHIFT MARKET BENEATH A ROW OF EUCALYPTUS TREES A TEENAGE CIGARETTE SELLER BOPS TO THE BEAT OF SOMALI POP MUSIC COMING FROM A BATTERED MUCHREPAIRED WALKMAN A UNITED NATIONS CONTINGENT OF ITALIAN SOLDIERS IN ARMORED PERSONNEL CARRIERS STILL GUARDS THE BRIDGE IN THIS TOWN ABOUT 200 MILES NORTH OF MOGADISHU BUT THERE ARE SOMALI POLICE ON THE STREETS AS WELL THEIR PRESENCE IN NAVY BERETS AND WELLTENDED UNIFORMS ADDS TO THE AIR OF NORMALCY HERE THIS PLACE TOO IS SOMALIA A PLACE WHERE PRIMARYSCHOOL CHILDREN ATTEND CLASSES REOPENED BY SOMALI VOLUNTEERS WHERE WELLBABY CLINICS ARE ACTUALLY FULL OF WELL BABIES A PLACE WHERE HOPE HAS BEEN RESTORED IT IS TO BE SURE A SMALL CORNER OF THE COUNTRY BUT IT IS PERHAPS NO MORE NOR LESS TYPICAL OF THE WHOLE THAN THAT OTHER SMALL CORNER THE SOUTHERN SUBURBS OF MOGADISHU FROM WHICH THE US HAS ABSORBED THE MESSAGE THAT ALL HOPE IN SOMALIA IS NOW LOST IN VICIOUS KILLING AND DESPAIR IF ANYTHING IT IS 35YEAROLD DR TAHLIL WHO REPRESENTS THE CHARACTER AND MOOD OF SOMALIA NOT THE GROTESQUE YOUTHS GLORYING IN DISMEMBERED CORPSES DR TAHLIL COULD HAVE LEFT HIS COUNTRY AS DID MANY OTHERS WITH HIS QUALIFICATIONS INSTEAD HE STAYED TO BATTLE THE DEADLY TROIKA OF WAR FAMINE AND DISEASE IN 1990 JUST TWO YEARS OUT OF MEDICAL SCHOOL DR TAHLIL BECAME A FLIGHT SURGEON IN THE FORCES OPPOSED TO SIAD BARRE SOMALIA'S FORMER DICTATOR IT WAS ENOUGH EXPERIENCE OF WAR GUNS CAN'T SOLVE ANYTHING HE SAYS HE SUPPORTS THE UN PRESENCE IF NOT ALL UN SOLDIERS' ACTIONS NOW WE ARE A FREE PEOPLE IF SOMETHING IS WRONG WE CAN SAY TO THE UN SOLDIERS WE CAN'T ACCEPT IT BEFORE YOU COULDN'T TALK TO THE GUNMEN HE BELIEVES THE US ARMY'S PURSUIT OF WARLORD GEN MOHAMED FARRAH AIDID IS MISGUIDED WHEN YOU CAME HERE YOU SAVED A LOT OF LIFE NOW IN THIS FIGHTING PEOPLE ARE DYING THAT YOU SAVED BEFORE SAYS DR TAHLIL IT'S BETTER TO SEEK A POLITICAL SOLUTION SO THAT YOU CAN COLLECT THE FRUITS THAT YOU ALREADY PLANTED WHILE THE UN SAYS IT IS DEEMPHASIZING THE MANHUNT FOR GEN AIDID THERE IS LITTLE EVIDENCE OF THAT IN THE SOUTHERN SUBURBS OF MOGADISHU THIS WEEK 14 US SOLDIERS WERE KILLED IN THE BLOODIEST FIGHTING SINCE US FORCES ARRIVED IN DECEMBER IN RESPONSE PRESIDENT CLINTON YESTERDAY ORDERED REINFORCEMENTS SENT TO SOMALIA THE US FORCES WOULD BE WITHDRAWN IN SIX MONTHS HE SAID FROM THE AIR OVER THE NORTHERN SUBURBS WHERE ROCKETPROPELLED GRENADES ARE RARE MOGADISHU LOOKS LIKE A WELLLAIDOUT TOWN OF NEAT REDROOFED BUNGALOWS BUT AS THE PLANE HEADS TOWARD THE SOUTH AND BANKS AND LOWERS IN EVASIVE LANDING MANEUVERS THE TERRIBLE GNAWED TRUTH OF THE PLACE IS DISCLOSED HERE EVERYTHING SALABLE HAS BEEN STRIPPED AND SOLD LOOTERS HAVE CHIPPED AWAY TILES PULLED OUT COPPER WIRE AND CHOPPED DOWN URBAN SHADE TREES TO MAKE CHARCOAL AT NIGHT THE CONSTANT CLATTER OF HELICOPTERS AND BURSTS OF GUNFIRE MAKE SLEEP DIFFICULT IN THE UN COMPOUND RUBBLE FROM MORTAR ROUNDS THAT HAVE HIT THEIR MARKS MINGLES WITH DUSTY NEW BUILDING MATERIAL AS THE UN STRUGGLES TO MOVE ITS HUGE POPULATION OUT OF MATCHSTICKFRAIL PREFABRICATED DWELLINGS TO THOSE UNDER CONCRETE ROOFS THE MOOD INSIDE IS GLOOMY AS NONESSENTIAL PERSONNEL DEPART FOR NAIROBI KENYA THOSE LEFT BEHIND RESIGN THEMSELVES TO A BUNKERLIKE EXISTENCE IN A SECURITY SITUATION THAT MAKES IT EXTREMELY DIFFICULT TO MEET ANY OF THE SOMALIS THEY ARE OSTENSIBLY TRYING TO HELP ADM JONATHAN HOWE THE ONCEEBULLIENT REPRESENTATIVE OF THE UN SECRETARYGENERAL HAS BECOME PALER AND SUBDUED IT'S BEEN A TERRIBLE WEEK SAYS ANDREW MANER THE RETIRED US ADMIRAL'S ASSISTANT THE LAST THREE MORNINGS HAVE BEEN SPENT AT FUNERALS ON WEDNESDAY NIGHT NERVES IN THE COMPOUND WERE SO FRAYED THAT RUMORS OF AN INFILTRATOR SPARKED A FIREFIGHT BETWEEN THE AMERICANS AND THE VARIOUS OTHER NATIONAL ARMIES CAMPED IN THE COMPOUND NERVOUS US SOLDIERS BURST INTO THE ROOMS OF AFRICAN UN PERSONNEL SHOVING GUNS IN THE FACES OF SENIOR STAFFERS THEY THOUGHT MIGHT BE THE INTRUDER ALTHOUGH THE UN OFFICIALLY STATES THAT THE EMPHASIS HAS SHIFTED FROM THE SEARCH FOR GEN AIDID A SECTION OF THE SOUTHERN SUBURBS WAS THROWN INTO TURMOIL YESTERDAY BY AN APPARENT EXERCISE OF US PSYCHOLOGICAL WARFARE RESIDENTS SAY THEY FOUND LEAFLETS PRINTED ON ONE SIDE WITH A WARNING THAT ANYONE WHO DIDN'T VACATE A LARGE AREA OF SOUTHERN MOGADISHU WOULD BE DEEMED A MILITIA MEMBER AND AN ENEMY OF THE UN COMMAND THE LEAFLETS CAUSED CONFUSION IN A POPULATION ABOUT ONE MILLION OF SOMALIA'S 71 MILLION PEOPLE LIVE IN THE CAPITAL WHERE LESS THAN HALF IS LITERATE AND FEW CAN READ A WESTERNSTYLE MAP AID WORKERS SAY WOMEN AND CHILDREN COULD BE SEEN LEAVING THE AREA HEADING OUT OF THE CITY TO DESTINATIONS WHERE FOOD AND SHELTER WOULD BE UNCERTAIN IT IS FOR THE FEW REMAINING FOREIGNAID WORKERS THAT THE BALANCE BETWEEN WHERE THEY HAVE SUCCEEDED AND FAILED IN SOMALIA IS HARDEST TO DRAW LATE AT NIGHT AFTER THE ELECTRIC GENERATOR HAS SHUDDERED INTO SILENCE AID WORKERS SIT IN THE DARK OF THEIR UNGUARDED COMPOUND HERE AND ARGUE OVER THE MEANING OF THE WORD SUCCESS THE ACCENTS ARE DIFFERENT GERMAN SCOTTISH AND FRENCH AND SO ARE THE OPINIONS IF I DIG A WELL AND THREE PEOPLE ARE USING IT THAT IS A SUCCESS SAYS KLAUS PETERS FROM THE GERMAN CHARITY CARITAS BUT A WATER ENGINEER HAS A DIFFERENT DEFINITION SUCCESS WILL BE WHEN ONE SUBCLAN WILL AGREE WITH ANOTHER ABOUT WHERE TO PUT THE WELL AND WHOSE CAMELS CAN DRINK FROM IT THERE'S NO SUCCESS IN SOMALIA BUT FOR SOMALIS LIKE DR TAHLIL THE CALCULUS IS FAR LESS DIFFICULT HE LOOKS UP FROM EXAMINING A FIVEYEAROLD BOY STUNTED FROM THE FAMINE HE SURVIVED HE IS SMALL A LITTLE BUT HE WILL BE OK THE DOCTOR SAYS THE CHILD WILL SURVIVE BECAUSE THE AMERICANS CAME AND ONLY IF THEY DO NOT LEAVE