ELJER INDUSTRIES INC SAID A STATE COURT IN ILLINOIS RULED IN ITS FAVOR ON A CRITICAL ASPECT OF A DISPUTE OVER THE INSURANCE COVERAGE OF A DEFECTIVE PLUMBING SYSTEM SOLD BY ELJER'S US BRASS CORP THE PLUMBING PRODUCTS MAKER SAID THE COURT RULED THAT TRAVELERS CORP'S TRAVELERS INDEMNITY CO WAS BOUND TO A FEDERAL APPEALS COURT DECISION THAT THE PLUMBING SYSTEM'S INSTALLATION DATE SHOULD BE THE TRIGGER DATE FOR COVERAGE BETWEEN 1982 AND 1986 AN ELJER ATTORNEY SAID THE TRIGGER DATE OF COVERAGE WAS THE LAST REMAINING SIGNIFICANT ISSUE IN PROTRACTED LITIGATION WITH INSURERS TRAVELERS SAID THE RULING ADDRESSES ONLY ONE OF SEVERAL COVERAGE ISSUES THE INSURER HASN'T DECIDED IF IT WILL APPEAL FITTINGS ON THE ELJER UNIT'S QEST POLYBUTYLENE PLUMBING SYSTEM CORRODED AND CAUSED FLOODING IN HOMES LEADING TO THOUSANDS OF LAWSUITS 9310070009 931007 TECHNOLOGY BRIEF MARTIN MARIETTA CORP CLAIMS BY US ARE RESOLVED WITH 67 MILLION PAYMENT MARTIN MARIETTA CORP BETHESDA MD SAID IT PAID 67 MILLION TO THE US GOVERNMENT TO RESOLVE CIVIL CLAIMS INVOLVING OVERCHARGING FOR GOVERNMENT CONTRACTS THE PAYMENT AGREED TO WITH THE US ATTORNEY'S OFFICE IN SPRINGFIELD MASS SETTLES CLAIMS AGAINST GENERAL ELECTRIC CO'S FORMER DEFENSE SYSTEMS UNIT IN PITTSFIELD MASS WHICH MARTIN MARIETTA ACQUIRED AS PART OF GE'S AEROSPACE UNIT FOR WHICH IT PAID 18 BILLION THIS YEAR THE GOVERNMENT CLAIMED THAT THE GE UNIT FAILED TO PROVIDE ACCURATE INFORMATION IN THE NEGOTIATION OF DEFENSE PROCUREMENT CONTRACTS FROM 1979 THROUGH 1988 LEADING TO OVERCHARGES OF ABOUT 35 MILLION A MARTIN MARIETTA SPOKESMAN CALLED THE OVERCHARGING AN UNINTENTIONAL DUPLICATION OF CHARGES AND SAID THE LIABILITY HAD BEEN EXPECTED AT THE TIME OF THE ACQUISITION 9310070008 931007 TECHNOLOGY BRIEF APPLE COMPUTER INC OFFICE COMPLEX IS PLANNED AT SITE NEAR AUSTIN TEXAS APPLE COMPUTER INC SAID IT PLANS TO BUILD A 300000SQUAREFOOT OFFICE COMPLEX NEAR AUSTIN TEXAS FOR ITS CUSTOMER SUPPORT WORKERS ALREADY IN THE CITY AN APPLE SPOKESMAN SAID THE NEW FACILITY WILL BE BUILT ON ABOUT 130 ACRES OF UNDEVELOPED RANCHLAND THAT APPLE ANNOUNCED IN JANUARY IT WOULD BUY HE SAID THE NEW COMPLEX WILL ACCOMMODATE THE MORE THAN 700 EMPLOYEES NOW WORKING OUT OF THREE LEASED FACILITIES AT APPLE'S CUSTOMERSUPPORT CENTER IN AUSTIN CONSTRUCTION IS TO BEGIN EARLY NEXT YEAR IN PLANS SUBMITTED TO LOCAL OFFICIALS APPLE SAID THE NEW COMPLEX MIGHT EVENTUALLY BE EXPANDED TO 750000 SQUARE FEET FUELING SPECULATION AMONG SOME FINANCIAL ANALYSTS THAT APPLE WAS CONTEMPLATING A RELOCATION OF SOME EMPLOYEES FROM CALIFORNIA TO CUT COSTS THE APPLE SPOKESMAN SAID NO SUCH RELOCATIONS ARE PLANNED APPLE HAD CONSIDERED SOME LARGESCALE RELOCATIONS TO TEXAS FROM ITS CUPERTINO CALIF HEADQUARTERS ACCORDING TO OFFICIALS CLOSE TO APPLE BUT MANAGEMENT DECIDED AGAINST SUCH MOVES AFTER DETERMINING THE PAYBACK IN SAVINGS WOULD BE TOO FAR OFF 9310070007 931007 BUSINESS BRIEF EUROPA CRUISES CORP FOUNDER FORMER CHAIRMAN WILL SEEK TO OUST DIRECTORS THE FOUNDER AND FORMER CHAIRMAN OF EUROPA CRUISES CORP SAID HE AND A GROUP OF SHAREHOLDERS WILL ATTEMPT TO OUST THE CRUISE AND CASINO COMPANY'S BOARD AT EUROPA'S ANNUAL MEETING OCT 29 CHARLES S LIBERIS WHO RESIGNED AS CHAIRMAN LAST DECEMBER IN A DISPUTE OVER THE PENSACOLA FLA COMPANY'S DIRECTION SAID HE AND FIVE OTHER INDIVIDUALS HAVE FILED MATERIALS WITH THE SECURITIES AND EXCHANGE COMMISSION EXPRESSING THEIR INTENT TO SOLICIT PROXIES TO ELECT A NEW SLATE OF DIRECTORS CHARLES H REDDIEN EUROPA'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID MANAGEMENT WOULD VIGOROUSLY OPPOSE THE PROXY SOLICITATION MR LIBERIS'S ACTION IS THE LATEST CHAPTER IN A LITIGIOUS FEUD BETWEEN HIM AND THE COMPANY HE FOUNDED IN 1986 9310070006 931007 BROILING MAD DUMPED CARL KARCHER VOWS FIGHT TO RETAKE HIS FASTFOOD EMPIRE BUT AUTOCRATIC CHIEF FACES A BOARD LEERY OF BURRITOS GAFFES AND BIGOT BURGERS' A SAD DAY FOR HAPPY STAR BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL ANAHEIM CALIF CARL N KARCHER BEGAN LAST FRIDAY'S DIRECTORS' MEETING AS HE ALWAYS HAD WITH THE PLEDGE OF ALLEGIANCE AND THE PRAYER OF ST FRANCIS OF ASSISI LORD MAKE ME AN INSTRUMENT OF THY PEACE THE 76YEAROLD HAMBURGER PATRIARCH INTONED ALONG WITH THE SIX DIRECTORS AND ASSORTED ADVISERS GATHERED AROUND THE OCTAGONAL CONFERENCE TABLE AT CARL KARCHER ENTERPRISES INC'S HEADQUARTERS HERE WHERE THERE IS HATRED LET ME SOW LOVE WHERE THERE IS INJURY PARDON WHERE THERE IS DOUBT FAITH BUT LOVE AND PARDON WEREN'T ON THE AGENDA AS FOR FAITH THE DIRECTORS HAD LOST THEIRS IN THEIR CHAIRMAN SOME TIME AGO NOW AS HE WATCHED IN PAIN ONE BY ONE HIS HANDPICKED BOARD MEMBERS CAST VOTES TO OUST HIM AS HEAD OF THE 649UNIT REGIONAL FASTFOOD CHAIN WITH ANNUAL SALES OF 500 MILLION THAT BEARS HIS NAME IN THE END ONLY ONE REMAINED IN HIS CORNER HIS 44YEAROLD ELDEST SON ALSO NAMED CARL HIS WIFE MARGARET WHO ISN'T A DIRECTOR ANY LONGER BUT WHO STILL ATTENDS MEETINGS FOUND THE WORDS THAT HER HUSBAND COULDN'T UTTER YOU'VE CRUCIFIED US SHE UPBRAIDED THE DIRECTORS THEY HAD NO IDEA SHE TOLD THEM BITTERLY WHAT IT MEANS TO BUILD A BUSINESS FROM NOTHING AS HER HUSBAND HAD DONE BY BUYING A SINGLE HOTDOG CART WITH A 311 LOAN ON THEIR NEW 1941 PLYMOUTH MR KARCHER'S OUSTER FOLLOWED MONTHS OF INCREASING DISILLUSIONMENT AMONG DIRECTORS WHO WORRIED THAT THEIR CANTANKEROUS CHAIRMAN WAS RUNNING HIS COMPANY AS A PERSONAL FIEFDOM A VISIONARY ENTREPRENEUR HE FORESAW TODAY'S TREND TOWARD HEALTHIER FASTFOOD OFFERINGS HIS RESTAURANTS WERE AMONG THE FIRST TO OFFER SALAD BARS AND GRILLEDCHICKEN SANDWICHES YET HE REFUSED TO LET GO OF THE REINS OF THE EMPIRE HE BUILT DEMANDING ALMOST ABSOLUTE POWER HE DECREED THAT HE HAD TO APPEAR IN ALL ADVERTISING HE WAS SLOW TO CHOOSE A SUCCESSOR EVEN AS PROFITS SLID AND AS HIS OWN PERSONAL FORTUNE CRUMBLED THE FINAL STRAW CAME WHEN THE BOARD REFUSED TO GO ALONG WITH A DEAL IN WHICH CARL'S JR RESTAURANTS WOULD SELL BURRITOS MADE BY A CHAIN WHOSE CONTROLLING SHAREHOLDER WOULD HAVE GIVEN MR KARCHER A 6 MILLION PERSONAL LOAN IN RETURN CARL RAN THE COMPANY FOR 52 YEARS WITH A FAIRLY AUTOCRATIC INSISTENT STYLE AND NOW HE HAS A NEW CEO SETTING THE DIRECTION OF THE COMPANY AND MAKING DECISIONS SAYS THAT NEW CHIEF EXECUTIVE DONALD DOYLE 47 WHO MR KARCHER HIMSELF PICKED LAST DECEMBER HE'S HAD A DIFFICULT TIME ACCEPTING THAT MR KARCHER VOWS TO FIGHT AND HE HAS ALREADY PROVED HIMSELF WILLING TO TAKE ON BATTLES IN CALIFORNIA HOME TO MOST OF HIS RESTAURANTS MR KARCHER IS PERHAPS KNOWN AS MUCH FOR HIS ANTIHOMOSEXUAL AND ANTIABORTION ACTIONS AS HE IS FOR HIS BURGERS PROUD OF THE FACT THAT HE ONCE TALKED A CARL'S JR EMPLOYEE OUT OF AN ABORTION HE IS NOTORIOUS IN GAY AND LESBIAN CIRCLES FOR SUPPORTING A FAILED 1978 CALIFORNIA INITIATIVE THAT WOULD HAVE BANNED HOMOSEXUALS FROM TEACHING IN PUBLIC SCHOOLS MANY IN THE GAY COMMUNITY STILL REFUSE TO EAT WHAT THEY CALL BIGOT BURGERS MR KARCHER NOW BELIEVES THAT HE HAS BEEN DECEIVED BY HIS LONGTIME FRIENDS AND BOARD MEMBERS CONTENDING THEY CONSPIRED TO FORCE HIM OUT OF HIS JOB A CHARGE THE BOARD DENIES PHONING A LOS ANGELES RADIO SHOW THIS WEEK MR KARCHER FUMED OVER HIS OUSTER WHILE THE HOST RATTLED OFF A LIST OF DIRECTORS PUNCTUATING EACH NAME WITH THE CHANT JUDAS THEY TURNED OUT TO BE TURNCOATS SAYS MR KARCHER AS FOR MR DOYLE MR KARCHER SAYS HE'S STABBED ME IN THE BACK A FEW TIMES ALL THE MORE WRENCHING IS THE FACT THAT MR KARCHER IS MORE THAN JUST THE COMPANY'S CHAIRMAN AND FOUNDER HE IS ITS PUBLIC IDENTITY UNTIL THIS YEAR MR KARCHER AS A CARTOON CHARACTER WAS FEATURED IN TV ADS CHATTING WITH CARL'S JR'S MASCOT A SMILING FIVEPOINTED HAPPY STAR HIS PORTRAIT HANGS IN CARL'S JR RESTAURANTS AND HE IS THE COMPANY'S GOODWILL AMBASSADOR HANDING OUT FREE CHEESEBURGER COUPONS TUCKED INSIDE A COPY OF ST FRANCIS' PRAYER TO EVERYONE HE MEETS THOUGH DISSENT AMONG BOARD MEMBERS HAD BEEN SIMMERING FOR MONTHS MATTERS DIDN'T SPILL OUT INTO THE OPEN UNTIL THE RECENT TACO TIFF MR KARCHER WANTED TO TRY SELLING ANOTHER FASTFOOD CHAIN'S PRODUCTS GREEN BURRITO MEXICAN FOODS IN CARL'S JR RESTAURANTS THE BOARD THOUGHT THIS DUAL MARKETING CONCEPT WAS A LOUSY IDEA IN NO SMALL PART BECAUSE THEY BELIEVED IT WAS ENGINEERED MAINLY TO ENRICH MR KARCHER PERSONALLY THE DEAL CALLED FOR GREEN BURRITO'S CONTROLLING SHAREHOLDER WILLIAM THEISEN TO GIVE MR KARCHER THE LOAN TO HELP BAIL OUT HIS PERSONAL FORTUNE WHICH COLLAPSED ALONG WITH THE SOUTHERN CALIFORNIA REALESTATE MARKET WHEN THE BOARD REJECTED THE BURRITO PROPOSAL MR KARCHER WHO HOLDS A 34 STAKE IN THE COMPANY THREATENED A PROXY FIGHT THE BOARD TRIED TO NEGOTIATE OFFERING TO BUY BACK 16 MILLION OF HIS STOCK IF HE WOULD AGREE TO BECOME CHAIRMAN EMERITUS AND DITCH THE BURRITO GAMBIT BUT MR KARCHER WOULDN'T BUDGE SO AT LAST FRIDAY'S MEETING THE BOARD REPLACED HIM AS CHAIRMAN WITH DIRECTOR ELIZABETH SANDERS 48 A FORMER NORDSTROM INC EXECUTIVE SITTING WITH HIS LEGAL AND FINANCIAL ADVISERS IN THE WOODPANELED DEN OF THE MODEST SPANISHSTYLE HOME WHERE HE AND HIS WIFE HAVE LIVED FOR 44 YEARS AND RAISED A DOZEN CHILDREN MR KARCHER IS ALREADY PLOTTING A COMEBACK HE SAYS HE HASN'T DECIDED WHETHER TO LAUNCH THAT MUCHTHREATENED PROXY FIGHT OR TRY TO FIND A FRIENDLY INVESTOR BUT HE IS CERTAIN OF ONE THING I'M NOT GOING TO LET THEM GET AWAY WITH IT YET A PROXY BATTLE MAY NOT BE POSSIBLE MR KARCHER HAD PLEDGED SOME THREEQUARTERS OF HIS STOCK AS COLLATERAL FOR NEARLY 30 MILLION OF PERSONAL LOANS THAT ARE NOW IN DEFAULT HIS BANKS HAVEN'T SEIZED THE 46 MILLION SHARES BUT THEY HAVE THE RIGHT TO DO SO AT ANY TIME SO AT THIS POINT MR KARCHER'S HOMEGROWN STRATEGY IS TO WAGE AN ALLOUT PUBLICRELATIONS CAMPAIGN APPEALING TO LOYAL EMPLOYEES FRANCHISEES AND SHAREHOLDERS IN A SHOW OF SUPPORT MR KARCHER'S ALLIES ARE HOLDING A RALLY TODAY AT THE COMPANY'S FLAGSHIP CARL'S JR RESTAURANT AT CORPORATE HEADQUARTERS A HANDMADE SIGN READING WE WANT CARL BACK ADORNED WITH A FROWNING LIKENESS OF THE HAPPY STAR MASCOT IS TIED TO A FENCE ON AN ADJOINING PROPERTY THAT COINCIDENTALLY IS OWNED BY THE KARCHER FAMILY DESPITE HIS STOMACH FOR BATTLES THE JOWLY GRANDFATHERLY MR KARCHER CUTS NOT SO MUCH A STRIDENT FIGURE THESE DAYS AS A SAD ONE HE PULLS OUT A LETTER ON COMPANY STATIONERY INFORMING HIM SHOULD YOU WISH TO GAIN ACCESS TO YOUR OFFICE FOR THE PURPOSE OF PICKING UP SOME OF YOUR PERSONAL ITEMS CONTACT THE CORPORATE SECURITY DEPARTMEYS MR KARCHER THEY'RE TREATING ME LIKE A CRIMINAL UNTIL RECENTLY MR KARCHER'S LIFE SEEMED LIKE THE PERFECT HORATIO ALGER TALE AN OHIO FARM BOY HE MADE HIS WAY TO CALIFORNIA IN 1937 MET THE DAUGHTER OF A LOCAL ORANGE GROWER AT CHURCH MARRIED HER AND STARTED HIS EMPIRE IN SOUTH CENTRAL LOS ANGELES WITH A HOTDOG CART THE PUSHCART LED TO A DRIVEIN BARBECUE RESTAURANT IN ANAHEIM THEN A TAKEOUT EATERY IN 1956 WHICH HE CALLED CARL'S JR IN THE 1960S AND '70S HE DABBLED IN SEVERAL RESTAURANT VENTURES INCLUDING A MEXICAN BID CALLED TACO DE CARLOS BUT MOST FLOPPED AND HE FINALLY SETTLED ON BUILDING THE CARL'S JR HAMBURGER CHAIN LOOKING FOR WAYS TO COMPETE WITH MCDONALD'S AND BURGER KING MR KARCHER HIT ON THE IDEA OF CALIFORNIASTYLE FAST FOOD OFFER HEALTHIER FARE FOR A MORE MATURE CLIENTELE AND CHARGE MORE FOR IT CARPETING AND TABLE SERVICE HELPED FURTHER DISTINGUISH CARL'S JR FROM OTHERS THE FORMULA CLICKED AND BY 1980 THE CHAIN HAD GROWN TO MORE THAN 300 LOCATIONS BUT MR KARCHER'S CURRENT PROBLEMS BEGAN TO TAKE ROOT THE NEXT YEAR WHEN HE DECIDED TO TAKE THE COMPANY PUBLIC AT 360 A SHARE THERE ARE LIMITS TO WHAT A CHAIRMAN CAN DO WITH A COMPANY HE NO LONGER OWNS BUT MR KARCHER AT TIMES APPEARED TO HAVE TROUBLE DELINEATING THE BOUNDARIES IN THE EARLY 1980S FOR EXAMPLE HE AND HIS WIFE BOUGHT AN OLD MOTEL ADJACENT TO THE COMPANY'S HEADQUARTERS PROPERTY IT SEEMED ONLY FAIR TO MR KARCHER THAT HE BE ABLE TO PUT UP VISITING EMPLOYEES AT HIS OWN MOTEL BUT WHEN SOME EMPLOYEES COMPLAINED THE OUTSIDE DIRECTORS SEVERED THE SPECIAL RELATIONSHIP WITH THE KARCHER INN WHICH HAS SINCE BEEN TORN DOWN HIS POLITICAL BELIEFS PROVED TO BE A BRIAR PATCH FOR THE COMPANY AS WELL ONE OF THE REPUBLICAN PARTY'S BIGGEST BOOSTERS IN CONSERVATIVE ORANGE COUNTY HE HAS FRAMED PHOTOS OF HIMSELF WITH PRESIDENTS REAGAN AND FORD MR KARCHER HAS ALWAYS BEEN QUICK TO SPEAK HIS MIND ABOUT GOD AND COUNTRY WHEN JERRY DELLA FEMINA WHOSE FORMER AD AGENCY ONCE CREATED CARL'S ADS WROTE A PROCHOICE NEWSPAPER COLUMN MR KARCHER CALLED TO SCREAM AT HIM MR DELLA FEMINA SAYS MR KARCHER HAS BEEN KNOWN TO DECLARE THAT FORMER PRESIDENT NIXON GOT A BUM RAP HIS CONSERVATIVE VIEWS PROMPTED STUDENTS AT CALIFORNIA STATE UNIVERSITY AT NORTHRIDGE TO VOTE AGAINST ALLOWING A CARL'S JR RESTAURANT THERE I BELIEVE IN CERTAIN MORAL PRINCIPLES I'M A GOOD CHRISTIAN I'M A CONSERVATIVE PERSON HE SAYS DEEPLY RELIGIOUS HE ATTENDS 630 AM MASS EVERY DAY AND INSTALLED A HANDCARVED STATUE OF A BEROBED ST FRANCIS AT COMPANY HEADQUARTERS WHILE HE SUPPORTED A CALIFORNIA ANTIGAY REFERENDUM HE SAYS HE PERSONALLY ISN'T ANTIHOMOSEXUAL GRANDFATHER TO 45 CHILDREN AND GREATGRANDFATHER TO 11 MR KARCHER ALSO IS A BIG BELIEVER IN FAMILY THAT GOT HIM INTO TROUBLE WITH THE SECURITIES AND EXCHANGE COMMISSION WHICH HAD TO REMIND HIM THAT IT IS AGAINST THE LAW TO TELL FAMILY MEMBERS ABOUT A DROP IN EARNINGS BEFORE TELLING OTHER STOCKHOLDERS IN A 1988 LAWSUIT THE SEC ALLEGED THAT MR KARCHER FOUR YEARS EARLIER HAD TIPPED OFF SEVERAL OF HIS CHILDREN TO AN UPCOMING ANNOUNCEMENT THAT COMPANY PROFITS WOULD PLUMMET 50 IT CHARGED THAT THE FAMILY AND THE COMPANY'S CHIEF ACCOUNTANT DUMPED THOUSANDS OF SHARES AVOIDING MARKET LOSSES OF MORE THAN 300000 MR KARCHER WOULDN'T BUDGE I FOUGHT THAT TO THE HILT HE SAYS BUT 15 MONTHS LATER AFTER HUNDREDS OF THOUSANDS OF DOLLARS IN LEGAL BILLS HE SETTLED THE INSIDERTRADING CASE ANYWAY PAYING HALF OF A 664000 SETTLEMENT ALONG WITH SIX OF HIS CHILDREN AND INLAWS BY 1991 EVEN AS HIS FRIEND BOB HOPE TOASTED HIM AT A BLACKTIE GALA AT THE DISNEYLAND HOTEL CELEBRATING THE CHAIN'S 50TH ANNIVERSARY THE HAPPILYEVERAFTER ENDING TO CARL'S STORY WAS GROWING EVER MORE DISTANT THE BOARD HAD ALREADY OPPOSED THE IDEA OF HAVING MR KARCHER'S BROTHER DONALD THE COMPANY'S PRESIDENT SUCCEED HIM AS CHIEF EXECUTIVE THEN DONALD WAS DIAGNOSED WITH INOPERABLE LUNG CANCER HE PASSED MAY 19 1992 AT 205 IN THE MORNING MR KARCHER SAYS QUIETLY THERE'S NOT ONE PERSON WHO'D TELL YOU THEY DIDN'T LIKE DON KARCHER TO COMPLICATE MATTERS THE OTHER LIKELY SUCCESSOR EXECUTIVE VICE PRESIDENT RAYMOND J PERRY WAS ABRUPTLY DISMISSED AS THE COMPANY'S PERFORMANCE SLIPPED IN THE FACE OF FASTFOOD PRICE WARS MR KARCHER'S DECREE THAT HOT DOGS BE REINTRODUCED AT ALL CARL'S JRS FOR THE 50TH ANNIVERSARY A NOSTALGIC WHIM THAT COST THE COMPANY 500000 IN NEW EQUIPMENT PROVED A POOR BUSINESS MOVE HIS DREAM OF EXPANDING NATIONALLY IN THE MID1980S HAD BEEN DASHED AS WELL AND BY NOW THE COMPANY HAD PULLED OUT OF TEXAS AND CONVERTED THE RESTAURANTS IT OWNED IN ARIZONA INTO FRANCHISE OPERATIONS AT THE SAME TIME MR KARCHER'S PERSONAL FINANCIAL PROBLEMS WORSENED AS INVESTMENTS IN AN APARTMENT COMPLEX AND A HOUSING DEVELOPER BEGAN TO SOUR LOYALTY TO FRIENDS LED MR KARCHER INTO MANY OF HIS VENTURES AND ONCE WEDDED FINANCIALLY HE WAS RELUCTANT TO BAIL OUT ADDING TO HIS WORRIES MR KARCHER WATCHED AS THE VALUE OF HIS HOLDINGS IN CARL KARCHER ENTERPRISES ONCE WORTH MORE THAN 100 MILLION FELL AS THE COMPANY'S STOCK PRICE TUMBLED TO THE 8 A SHARE RANGE IN 1990 FROM DOUBLE THAT AMOUNT A YEAR EARLIER THE COMPANY TRIED MANY AVENUES TO SEE IF THERE WERE APPROPRIATE WAYS WE COULD ASSIST HIM AND STILL BENEFIT ALL THE SHAREHOLDERS SAYS MS SANDERS THE NEW CHAIRMAN LAST YEAR THE BOARD CONSIDERED GIVING HIM A PERSONAL LOAN BUT DISCOVERED THAT IT COULDN'T UNDER CALIFORNIA LAW THE ONLY OTHER ALTERNATIVE WAS FOR MR KARCHER TO SELL THE COMPANY AND HE HAD JUST THE BUYER IN MIND HIMSELF HE MANAGED TO GET THE BACKING OF MANAGEMENT BUYOUT FIRM FREEMAN SPOGLI INC AND LAST YEAR MADE A 114 MILLION OFFER FOR THE CHAIN THE DEAL CALLED FOR FREEMAN SPOGLI TO LOAN HIM 42 MILLION AGAINST HIS STAKE BUT THE BOARD REJECTED HIS 950 A SHARE OFFER AS INADEQUATE I WAS DISAPPOINTED I WAS GOING TO GET 42 MILLION WHICH WOULD HAVE HELPED ME OUT WITH MY PERSONAL FINANCIAL PROBLEMS SAYS MR KARCHER IN OVERTHECOUNTER TRADING YESTERDAY THE STOCK WHOSE SYMBOL IS MR KARCHER'S FIRST NAME CLOSED AT 8125 OFF 25 CENTS AFTER THE BUYOUT ATTEMPT THE BOARD DECIDED THAT IT WAS TIME FOR MR KARCHER TO TURN OVER THE REINS MR DOYLE WHO HAD BEEN WORKING AS A CONSULTANT FOR FREEMAN SPOGLI WAS NAMED PRESIDENT AND CHIEF EXECUTIVE AT FIRST MR KARCHER SAYS I WAS LOOKING FORWARD TO HELPING DON GET ACQUAINTED WITH THE COMPANY BUT HE QUICKLY DISCOVERED THAT HIS SUCCESSOR PLANNED TO DO THINGS DIFFERENTLY STILL UNSATISFIED THE COMPANY PARTED WAYS WITH GOODBY BERLIN LATE LAST MONTH I SAY YOU PUT ME BACK ON TV WITH HAPPY AND I'LL INCREASE SALES THREE TO FIVE PERCENT MR KARCHER OFFERS MR KARCHER INSISTS A CONSPIRACY IS TO BLAME FOR HIS WOES HE SAYS THAT JUST WEEKS AFTER MR DOYLE'S ARRIVAL THE BOARD GRANTED MANAGEMENT CONTRACTS TO ALL TOP EXECUTIVES EXCEPT MR KARCHER MR DOYLE SAYS MR KARCHER NEVER ASKED FOR ONE MR KARCHER ALSO CLAIMS THE BOARD SCHEMED TO ELIMINATE THE ROLE OF CHAIRMAN AS PROOF AN AMENDED COPY OF THE COMPANY BYLAWS DATED MAY 7 IS PRESENTED IN WHICH THE POST IS MISSING FROM THE LIST OF OFFICERS MR DOYLE SAYS THE OMISSION WAS A TYPOGRAPHICAL ERROR SINCE CORRECTED THE DIRECTORS NOW ARE CONCENTRATING ON SLIMMING DOWN THE CARL'S JR MENU AND LOWERING PRICES TO BOLSTER SALES WHICH DROPPED TO 5026 MILLION IN 1993 FROM 5404 MILLION A YEAR EARLIER AFTER SHOWING A NET LOSS OF 55 MILLION FOR THE YEAR ENDED JAN 31 IN PART FROM RESTRUCTURING CHARGES THE COMPANY HAS RETURNED TO PROFITABILITY POSTING NET INCOME OF 31 MILLION FOR THE SIX MONTHS ENDED AUG 9 AS MR KARCHER PLOTS WHAT TO DO NEXT IT IS CLEAR THAT HE STILL SEES THE CHAIN AS HIS OWN EVEN NOW HE HANDS OUT BURGER COUPONS TO ALL WHO DROP BY AND WHEN HE AND HIS ADVISERS TAKE A BREAK A SERVANT WHISKS INTO THE ROOM TO PRESENT LUNCH FOILWRAPPED CARL'S JR BURGERS AND FRIES 9310070005 931007 TCI REPORTED IN TALKS TO BUY LIBERTY MEDIA REPURCHASE OF FIRM IT SHED WOULD REINFORCE QVC IN BATTLE FOR PARAMOUNT BY JOHNNIE L ROBERTS AND LAURA LANDRO STAFF REPORTERS OF THE WALL STREET JOURNAL TELECOMMUNICATIONS INC IS IN DISCUSSIONS TO REACQUIRE LIBERTY MEDIA CORP THE CABLE AND PROGRAMMING CONCERN IT SPUN OFF TO SHAREHOLDERS TWO AND A HALF YEARS AGO ACCORDING TO PEOPLE FAMILIAR WITH THE PLAN SUCH A DEAL WOULD MOVE TCI TO THE FOREGROUND OF THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC LIBERTY IS A CONTROLLING SHAREHOLDER OF QVC NETWORK INC WHICH HAS PROPOSED TO ACQUIRE PARAMOUNT IN A TRANSACTION VALUED AT 95 BILLION PARAMOUNT HAS ALREADY AGREED TO BE ACQUIRED BY VIACOM INC IN A TRANSACTION VALUED AT 74 BILLION LIBERTY'S SHARES ROSE ALMOST 6 YESTERDAY AS TRADERS BEGAN TO SPECULATE THAT SUCH A TRANSACTION MIGHT BE IN THE OFFING MOREOVER FURMAN SELZ INC AN INVESTMENT BANKING FIRM SPECIALIZING IN MEDIA AND ENTERTAINMENT COMPANIES RECOMMENDED THAT CLIENTS PURCHASE THE STOCK OF LIBERTY DESCRIBING THE COMPANY AS A RECONSOLIDATION POSSIBILITY LIBERTY MEDIA CLASS A SHARES GAINED 150 OR 59 TO CLOSE AT 27 A SHARE IN NATIONAL OVERTHECOUNTER TRADING WHILE LIBERTY CLASS B SHARES ROSE 175 TO 2675 MEANWHILE TCI CLASS A SHARES CLOSED AT 26625 EACH DOWN 125 CENTS AND TCI CLASS B SHARES FELL 25 CENTS TO 2650 OFFICIALS OF LIBERTY COULDN'T BE REACHED FOR COMMENT AND A SPOKESMAN FOR TCI DECLINED COMMENT BUT THE PEOPLE FAMILIAR WITH THE TALKS SAID THE DISCUSSIONS BETWEEN TCI AND LIBERTY WEREN'T PROMPTED BY THE PARAMOUNT TAKEOVER HOWEVER ONE OF THE PERSONS SAID THAT IF TCI ACQUIRED LIBERTY AND GOT DIRECTLY INVOLVED IN QVC'S BID THE BID WOULD BE STRENGTHENED DRAMATICALLY TCI HAS A STRONGER BALANCE SHEET AND IS MUCH LARGER THAN LIBERTY WHICH IS ALREADY BACKING THE QVC BID WITH A 500 MILLION INVESTMENT TELECOMMUNICATIONS SPUN OFF LIBERTY IN 1991 IN PART TO DEFUSE CRITICISM IN WASHINGTON THAT TCI WAS TOO POWERFUL WITH VAST HOLDINGS OF CABLE SYSTEMS AND CABLE PROGRAMMING AMONG THE ASSETS THAT LIBERTY INHERITED WERE STAKES IN BLACK ENTERTAINMENT TELEVISION THE FAMILY CHANNEL AND REGIONAL SPORTS NETWORKS AS WELL AS THE QVC STAKE TCI RETAINED MOST OF ITS CABLE SYSTEMS AND SOME PROGRAMMING INTERESTS INCLUDING A 23 STAKE IN TURNER BROADCASTING SYSTEM INC DESPITE THE SPINOFF THE TWO COMPANIES MAINTAINED CLOSE TIES TCI CHIEF EXECUTIVE JOHN MALONE BECAME LIBERTY'S CHAIRMAN AND CONTROLLING SHAREHOLDER TRANSFERRING MOST OF HIS PERSONAL HOLDINGS IN TCI TO LIBERTY BOB MAGNESS TCI'S FOUNDER AND CHAIRMAN ALSO OWNS A 19 VOTING STAKE IN LIBERTY AND TELECOMMUNICATIONS ITSELF OWNS ALMOST 5 OF LIBERTY THE IMPETUS FOR RECOMBINING THE COMPANIES HAS GROWN STRONGER RECENTLY BECAUSE NEW REGULATIONS TO LIMIT VERTICAL INTEGRATION HAVEN'T BEEN AS STRICT AS THE INDUSTRY HAD EXPECTED MOREOVER AS CONSOLIDATION CONTINUES IN THE MEDIA AND ENTERTAINMENT INDUSTRIES TCI NEEDS LIBERTY'S PROGRAMMING ASSETS IF IT IS TO RETAIN ITS POSITION AS ONE OF THE INDUSTRY'S MOST POWERFUL PLAYERS TCI AND LIBERTY'S CONTINUING TIES HAVE BEEN A LIGHTNING ROD IN THE TAKEOVER BATTLE IN A MOVE TO THWART THE QVC OFFER VIACOM FILED A SWEEPING ANTITRUST SUIT IN FEDERAL COURT IN NEW YORK CHARGING TCI LIBERTY AND RELATED COMPANIES WITH MONOPOLIZING THE CABLE BUSINESS TCI AND LIBERTY HAVE CALLED THE SUIT FRIVOLOUS JOHN TINKER AN ANALYST WITH FURMAN SELZ SAID THAT A RECOMBINED TCI AND LIBERTY LIKE VERTICALLY INTEGRATED TIME WARNER INC AND VIACOM MIGHT ATTRACT A HUGE INVESTMENT FROM A REGIONAL BELL PHONE COMPANY IN MAY U S WEST INC PAID 25 BILLION OR 13 TIMES CASH FLOW FOR A 25 STAKE IN TIME WARNER'S ENTERTAINMENT AND CABLE TV OPERATIONS ON MONDAY NYNEX CORP AGREED TO INVEST 12 BILLION IN VIACOM A CASH INFUSION THAT COULD BE USED TO SUPPORT VIACOM'S BID FOR PARAMOUNT IF TCI WANTS A SIMILAR DEAL IT NEEDS TO HAVE MORE PROGRAMMING MR TINKER SAID IN AN INTERVIEW PROGRAMMING IS BECOMING INCREASINGLY VALUABLE AS CABLE SYSTEMS SATELLITE TELEVISION SYSTEMS AND TELEPHONE COMPANIES VIE TO DELIVER A VAST ARRAY OF VIDEO AND DATA SERVICES IN ITS BID FOR PARAMOUNT QVC ALREADY IS HOLDING TALKS WITH SEVERAL REGIONAL BELL PHONE CONCERNS ABOUT INVESTING IN THE DEAL IF LIBERTY WITH A CONTROLLING INTEREST IN QVC IS REQUIRED BY TCI A BELL CONCERN COULD INVEST IN THE RECOMBINED ENTITY FOR LIBERTY A RETURN TO THE TCI FOLD COULD PROVIDE FINANCIAL SUPPORT THAT IT MAY NEED TO EXPAND ITS PROGRAMMING ALREADY LIBERTY'S PROGRAMMING UNITS ARE TAKING ON HEAVY OBLIGATIONS LAST WEEK LIBERTY'S 90OWNED PAYTV SERVICE ENCORE AGREED TO PAY MORE THAN 1 BILLION IN A LONGTERM LICENSING DEAL FOR MOVIES FROM WALT DISNEY CO UNITS INDUSTRY ESTIMATES OF ENCORE'S FUTURE LOSSES RUN AS HIGH AS 100 MILLION A YEAR WRITES MR TINKER ADDING THAT ROLLING ENCORE'S LOSSES OVER TO TCI WOULD MASK ENCORE'S POTENTIAL FINANCIAL PROBLEMS THE RECOMBINATION WOULD HELP ALLEVIATE GROWING MANAGEMENT STRIFE THAT HAS ARISEN BETWEEN THE TWO COMPANIES ALTHOUGH THEY HAVE COMMON OWNERSHIP AND MANAGEMENT THEY OPERATE AS SEPARATE ENTITIES PURSUING SIMILAR STRATEGIES FOR EXAMPLE THE TWO RECENTLY WERE VYING TO BACK A NEW LIFESTYLE CABLE CHANNEL THAT TIMES MIRROR CO IS PROPOSING ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION IT WOULDN'T BE UNPRECEDENTED FOR TCI TO REPURCHASE A COMPANY THAT IT HAS PREVIOUSLY SPUN OFF IN THE MID1980S IT DID JUST THAT WHEN IT SPUN OFF AND THEN BOUGHT BACK WESTMARC WHICH OPERATED CABLETV SYSTEMS 9310070004 931007 MARKETING BRIEF INTERNATIONAL CREATIVE MANAGEMENT PARISBASED JOINT VENTURE IS FORMED WITH ARTMEDIA INTERNATIONAL CREATIVE MANAGEMENT A LOS ANGELES TALENT AGENCY SAID IT FORMED A PARIS JOINT VENTURE ICM FRANCE WITH ARTMEDIA EUROPE'S LARGEST TALENT AGENCY THE JOINT VENTURE PRIMARILY IS DESIGNED TO PUT TOGETHER FILM AND TELEVISION PROJECTS BY TYING EUROPEAN ARTISTS TO FILM DISTRIBUTORS AND BROADCAST PARTNERS ICM FRANCE FOR EXAMPLE WAS BEHIND THE SADE PROJECT A MOVIE TO BE DIRECTED BY PAUL VERHOEVEN AND PRODUCED BY CAROLCO PICTURES INC TAKEN FROM AN ACCLAIMED FRENCH BIOGRAPHY OF THE MARQUIS DE SADE JACK NICHOLSON AND GERARD DEPARDIEU HAVE BEEN MENTIONED AS POSSIBLE STARS THE ALLIANCE DESCRIBED AS A CLASSICALLY FINANCED VENTURE ALSO IS INTENDED TO SEND A POSITIVE MESSAGE ABOUT LIMITING TRADE BARRIERS TO USGENERATED ENTERTAINMENT SAID JEFFREY BERG ICM'S CHAIRMAN AND CHIEF EXECUTIVE IN AN INTERVIEW 9310070003 931007 TECHNOLOGY SPRINT AND MINNESOTA SUPERCOMPUTER OFFER DATA NETWORK SERVICE NEW YORK SPRINT CORP AND MINNESOTA SUPERCOMPUTER CENTER INC BEGAN MARKETING A SERVICE THAT ALLOWS ANY BUSINESS TO USE A SUPERCOMPUTER VIA SPRINT'S HIGHSPEED DATA NETWORK THE NEW SERVICE SCHEDULED TO BEGIN OPERATIONS IN THE FIRST QUARTER OF 1994 GIVES SPRINT A JUMP ON ITS COMPETITORS AMERICAN TELEPHONE & TELEGRAPH CO AND MCI COMMUNICATIONS CORP IN HIGHSPEED NETWORKING SERVICES MINNESOTA SUPERCOMPUTER WILL EXPAND ITS SUPERCOMPUTERPROCESSING SERVICES TO CUSTOMERS THAT MIGHT OTHERWISE BE UNABLE TO INSTALL THEIR OWN MACHINES OR REACH ITS MINNEAPOLIS CENTER OURS IS THE FIRST SUCH COMMERCIAL OFFERING SAID DON TEAGUE VICE PRESIDENT OF SPRINT'S GOVERNMENT SYSTEMS DIVISION THE SERVICE STILL TO BE PRICED IS AIMED AT COMPANIES WITH NEEDS THAT REQUIRE SUPERCOMPUTING SUCH AS AIRCRAFT AND AUTOMOTIVE DESIGN PROJECTS GENETIC MAPPING AND DRUG REACTION SIMULATIONS COMPANIES WON'T HAVE TO PUT IN THEIR OWN SUPERCOMPUTERS WHICH CAN COST 20 MILLION TO 30 MILLION EACH WHEN THEY CAN TAP INTO MINNESOTA'S SAID JOHN SELL COMPANY PRESIDENT AND THEY'LL BE ABLE TO TIE TOGETHER GEOGRAPHICALLY DIVERSE FACILITIES INTO ONE PROJECT HE ADDED SPRINT BASED IN WESTWOOD KAN DOES THIS WITH A NEW NETWORKSWITCHING TECHNOLOGY CALLED ASYNCHRONOUS TRANSFER MODE OR ATM WHICH CARRIERS ARE USING TO BUILD THEIR INFORMATION SUPERHIGHWAYS SPRINT SAID ITS ATM SYSTEM PUMPS VOICE DATA AND VIDEO SIGNALS AT 45 MILLION BITS A SECOND OR AS MUCH INFORMATION TO FILL A 400PAGE BOOK AT&T AND MCI HAVE YET TO OFFER SUCH SERVICES WILLIAMS TELECOMMUNICATIONS INC TULSA OKLA HAS AN ATM THAT LINKS CORPORATE MAINFRAMES 9310070002 931007 MET LIFE TO PAY FOR FLORIDA TO HIRE AN INVESTIGATOR BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK METROPOLITAN LIFE INSURANCE CO TRYING TO RESOLVE A DISPUTE WITH THE FLORIDA INSURANCE DEPARTMENT OVER QUESTIONABLE SALES METHODS AGREED TO PAY FOR THE STATE TO HIRE AN INVESTIGATOR TO LOOK INTO THE PRACTICES THE STATE HAS AGREED TO PUT ITS DISCIPLINARY PROCEEDINGS AGAINST MET ON HOLD UNTIL IT RECEIVES THE RESULTS OF THE INVESTIGATION FLORIDA AS WELL AS SEVERAL OTHER STATES ARE INVESTIGATING MET FOR THE QUESTIONABLE ACTIVITY OF SOME OF ITS LIFEINSURANCE AGENTS MOST OF THE ATTENTION FOCUSES ON MET'S TAMPA OFFICE THE COMPANY'S LARGEST IN TERMS OF COMMISSIONS THE TAMPA OFFICE SPECIALIZED IN SELLING HIGHCOMMISSION LIFE INSURANCE TO NURSES BUT ALLEGEDLY MISREPRESENTED THE PRODUCT AS BEING A RETIREMENT ACCOUNT THE CONTROVERSY IN FLORIDA IS ADDING TO PRESSURE FROM WASHINGTON FOR THE INSURANCE INDUSTRY TO REFORM ITS SALES PRACTICES SEN HOWARD METZENBAUM D OHIO SAID YESTERDAY HE PLANS TO INTRODUCE LEGISLATION TO REGULATE INSURANCE SALES PRACTICES UNLESS THE STATES DO IT ON THEIR OWN QUICKLY SEN METZENBAUM SAID HE WAS UPSET BY MET'S ALLEGED CONDUCT THIS SHOWS SALES PRACTICES AREN'T ADEQUATELY REGULATED BY THE STATES HE SAID MET'S AGREEMENT TO PAY FLORIDA TO HIRE AN INVESTIGATOR IS THE COMPANY'S LATEST EFFORT TO CONTROL DAMAGE FROM THE CONTROVERSY LAST WEEK MET AGREED TO REFUND PREMIUMS TO 18000 POLICYHOLDERS WHO BOUGHT LIFE INSURANCE FROM THE TAMPA OFFICE THE OFFICE SOLD TO CUSTOMERS ACROSS THE COUNTRY MET HAS ALSO ORDERED ALL OF ITS 13000 AGENTS NATIONWIDE TO TEMPORARILY REFRAIN FROM MAILING SALES LITERATURE TO ANYONE WHO WORKS IN THE HEALTHCARE PROFESSION THE AGREEMENT WITH FLORIDA CAME AFTER AN HOURANDAHALF MEETING IN NEW YORK YESTERDAY BETWEEN FLORIDA'S INSURANCE COMMISSIONER TOM GALLAGHER AND MET CHAIRMAN HARRY KAMEN AND PRESIDENT TED ATHANASSIADES MR GALLAGHER HAS ACCUSED THE MET HIERARCHY OF BEING SLOW TO HALT THE PRACTICES IN THE TAMPA OFFICE BECAUSE THE OFFICE WAS SO SUCCESSFUL MET LIFE DENIES THAT THE SUCCESS OF THE OFFICE INFLUENCED ITS JUDGMENT THE FLORIDA INVESTIGATION SPRUNG IN PART OUT OF ALLEGATIONS MADE BY FORMER AGENTS IN THE TAMPA OFFICE WHO CLAIM THEY WERE FIRED FOR BLOWING THE WHISTLE ON THE PRACTICES MET TOLD ME MY CLIENTS WERE BAD EMPLOYEES AND THAT'S WHY THEY WERE FIRED SAID ATTORNEY JUDY HOYER A FORMER FEDERAL PROSECUTOR WHO REPRESENTS SOME OF THE AGENTS SHE SAID MET HAS REFUSED TO DISCUSS SETTLEMENTS THEY WERE TERMINATED FOR CAUSE SAID A SPOKESMAN THEIR ALLEGATIONS DO NOT HAVE A BASIS IN FACT MS HOYER SAID SHE NOTIFIED THE FEDERAL BUREAU OF INVESTIGATION ABOUT THE SALES PRACTICES AND THAT AN FBI AGENT SOUGHT ADDITIONAL INFORMATION FROM HER CALLS TO THE FBI OFFICE IN TAMPA WERE NOT REDAY MET LIFE OFFICIALS SAY THEY ARE UNAWARE OF ANY CRIMINAL INVESTIGATIONS TO THE BEST OF MY KNOWLEDGE WE HAVE NOT BEEN CONTACTED BY THE FBI SAID THE MET SPOKESMAN A COMMITTEE OF THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS A GROUP WHOSE MEMBERS ARE THE INSURANCE COMMISSIONERS OF ALL 50 STATES RECENTLY CRITICIZED THE PRACTICE OF MISREPRESENTING INSURANCE AS A SAVINGS VEHICLE CONSUMERS OFTEN BELIEVE THEY HAVE BOUGHT AN INVESTMENT AND DO NOT REALIZE THEY HAVE PURCHASED INSURANCE SAID A REPORT ISSUED BY THE COMMITTEE IN SEPTEMBER SEPARATELY MET IS ALSO FACING SCRUTINY FROM THE PENNSYLVANIA INSURANCE DEPARTMENT FOR ALLEGATIONS THAT AGENTS IN PITTSBURGH ENCOURAGED EXISTING CUSTOMERS TO CANCEL THEIR INSURANCE POLICIES AND REPLACE THEM WITH NEW ONES THUS COLLECTING ANOTHER ROUND OF COMMISSIONS WE'RE INVESTIGATING IT SAID THE MET SPOKESMAN 9310070001 931007 ARCO WELLS FAIL TO FIND OIL RESERVOIR OF COMMERCIAL QUALITY AT ALASKA SITE BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES ATLANTIC RICHFIELD CO SAID TWO WELLS DRILLED IN ALASKA'S BEAUFORT SEA FAILED TO FIND A COMMERCIAL QUALITY RESERVOIR THE REPORT IS A MAJOR DISAPPOINTMENT FOR THE LARGE OIL COMPANY AND ITS PARTNERS WHEN AN EXPLORATORY WELL DISCOVERED OIL AT THE SITE LAST YEAR ARCO WAS OPTIMISTIC THAT IT WOULD TURN OUT TO BE A HUGE FIND COMPARABLE WITH THOSE AT PRUDHOE BAY AND KUPAREK RIVER IN THE LATE 1960S THE WELLS IN THE BEAUFORT SEA ARE ABOUT 60 MILES EAST OF PRUDHOE BAY IT WAS ENCOURAGING UP TO THE THIRD WELL SAID JAMES M DAVIS SENIOR VICE PRESIDENT EXPLORATION AND LAND FOR ARCO ALASKA INC ALTHOUGH THERE WERE HYDROCARBONS THERE IT JUST ISN'T ECONOMIC TO DEVELOP AS A STANDALONE ACCUMULATION A MAJOR FIND FOR ARCO WOULD HAVE EASED CONCERNS ABOUT ITS DECLINING OIL RESERVES IN ALASKA BY FAR ITS LARGEST SUPPLY AND THE KEY TO ITS PROFITABLE POSITION IN WEST COAST GASOLINE MARKETS ARCO DOESN'T HAVE A WHOLE LOT OF DEVELOPMENT POTENTIAL OUTSIDE OF ALASKA YOU CAN POINT TO SAID BERNARD PICCHI AN ANALYST AT KIDDER PEABODY & CO REACTING TO THE DISAPOINTING NEWS ARCO FELL 2125 OR 19 TO 11250 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MR DAVIS SAID ARCO AND ITS PARTNERS HAVE SPENT A LITTLE MORE THAN 100 MILLION ON THE THREE EXPLORATORY WELLS ARCO IS THE OPERATOR AND OWNER OF ABOUT A 50 STAKE IN THE SITE CALLED THE KUVLUM PROSPECT ARCO SAID IT WOULD TAKE A CHARGE AGAINST EARNINGS IN THE THIRD QUARTER OR THE FOURTH QUARTER MR PICCHI THE ANALYST ESTIMATED THAT THE WRITEOFF AFTER TAXES WOULD BE ABOUT 30 MILLION OR 20 CENTS A SHARE UNION TEXAS PETROLEUM HOLDINGS INC OF HOUSTON WITH A 17 INTEREST SAID IT WILL TAKE A THIRDQUARTER 25 MILLION WRITEOFF OF ITS ENTIRE INVESTMENT IN THE KUVLUM PROSPECT IN 1992'S THIRD QUARTER UNION TEXAS EARNED 212 MILLION OR 11 CENTS A SHARE ON 1777 MILLION IN REVENUE PHILLIPS PETROLEUM CO BARTLESVILLE OKLA SAID IT ISN'T YET SURE IN WHICH QUARTER A CHARGE WILL BE TAKEN THE COMPANY HAS A 126 STAKE IN THE PROJECT A SPOKESMAN FOR MURPHY OIL CO SAID THE KUVLUM RESULTS WILL PROMPT THE COMPANY TO TAKE A THIRDQUARTER CHARGE HE DECLINED TO COMMENT ON THE AMOUNT OF MURPHY'S INVESTMENT IN THE VENTURE MOBIL CORP BASED IN FAIRFAX VA SAID ITS SHARE IN THE VENTURE IS LESS THAN 1 SO THERE WOULD BE NO MATERIAL IMPACT ON MOBIL A SPOKESMAN SAID AT TOTAL CIE FRANCAISE DES PETROLES THE PARISBASED OIL GIANT COMPANY OFFICIALS WITH KNOWLEDGE OF THE SITUATION COULDN'T BE REACHED TO COMMENT WHILE ARCO IS ABANDONING THE KUVLUM PROSPECT FOR NOW IT IS PUSHING AHEAD WITH A TEST WELL OF THE WILD WEASEL PROSPECT SIX MILES SOUTH OF KUVLUM THAT OPERATION WILL COST BETWEEN 20 MILLION AND 25 MILLION MR DAVIS SAID IF WEATHER PERMITS RESULTS ARE EXPECTED BY THE END OF NEXT MONTH ARCO HOLDS A 46 INTEREST IN THE VENTURE WITH PHILLIPS PETROLEUM HOLDING THE REST IT IS CONCEIVABLE THAT IF THEY FIND OIL AT WILD WEASAL THEY MIGHT BE ABLE TO DEVELOP IT IN CONJUNCTION WITH KUVLUM MR PICCHI SAID HE ESTIMATED THAT ARCO HAS 500 MILLION BARRELS OF OIL AT KUVLUM A MORE THAN RESPECTABLE DISCOVERY IN LOUISIANA TEXAS OR EVEN IN SOUTHERN ALASKA THE THRESHOLD FOR COMMERCIAL DEVELOPMENT IS MUCH HIGHER IN NORTHERN ALASKA WHICH IS FAR FROM PRODUCTION FACILITIES AND PIPELINES ENVIRONMENTAL ACTIVISTS HAVE ALSO RAISED CONCERNS ABOUT DEVELOPMENT OF SITES IN THE BEAUFORT SEA THAT ARE OFFSHORE FROM THE ARCTIC NATIONAL WILDLIFE REFUGE ROBERT JOHNSON IN HOUSTON CONTRIBUTED TO THIS ARTICLE 9310070072 930924 WORLD BUSINESS A SPECIAL REPORT THE WORLD'S 100 LARGEST BANKS NOTE FOR COMPARATIVE PURPOSES ASSETS ARE CALCULATED WITHOUT CUSTOMER ACCEPTANCES AND LOANLOSS RESERVES CAPITAL INCLUDES LONGTERM DEBT NONEQUITY RESERVES MINORITY INTEREST AND SHAREHOLDERS' EQUITY AND MAY INCLUDE SHORTTERM DEBT WHERE NOT ABLE TO SEPARATE 9310070059 930907 REVIEW & OUTLOOK EDITORIAL ASPHALT BUNGLE THE NATION'S GOVERNORS GRIPE DAY AND NIGHT ABOUT THE GOOFY MANDATES WASHINGTON KEEPS DUMPING ON THEM WELL HERE COMES ANOTHER ONE BEGINNING NEXT YEAR THE STATES WILL HAVE TO START MIXING OLD AUTOMOBILE TIRES INTO THEIR ASPHALT IF THEY WANT TO KEEP GETTING FEDERAL HIGHWAY DOLLARS HOW DO THESE SORTS OF STRANGE IDEAS FIND THEIR WAY INTO LAW THE MANDATE'S AUTHOR IS SENATOR JOHN CHAFEE OF RHODE ISLAND MR CHAFEE HAS CONSTITUENTS UP IN SMITHFIELD WHO ARE SITTING UNHAPPILY NEXT TO ONE OF THE BIGGEST TIRE DUMPS IN THE NORTHEAST HE'S GOT MORE CONSTITUENTS NEAR THE CONNECTICUT BORDER WHO ARE ON THE WARPATH AGAINST A NEARBY TIREINCINERATING PLANT LOTS OF SENATORS HAVE BEES IN THEIR BONNETS ABOUT SOMETHING MR CHAFEE'S BECAME LAW ONLY BECAUSE IT JIBED WITH THE AGENDA OF THE RUBBER ASPHALT LOBBY AND THE CLIMBABOARD MENTALITY OF THE ENVIRONMENTAL GROUPS IT ALSO HELPS TO HAVE CAPITOL HILL OPERATING WITH MEMBERS ONLY DIMLY AWARE OF WHAT ALL HAS BEEN LOADED INTO THE BILLS THEY'RE VOTING FOR MR CHAFEE'S CHANCE CAME AS A MEMBER OF THE CONFERENCE COMMITTEE THAT PUT THE FINAL TRIMMINGS ON THE 1991 INTERMODAL SURFACE TRANSPORTATION EFFICIENCY ACT OR ICE TEA WHEN ICE TEA WAS LATER WAVED THROUGH BY THE FULL CONGRESS IT CONTAINED A PROVISION REQUIRING THE STATES TO RUBBERIZE 20 OF THEIR NEW ROADS BY 1997 STATE HIGHWAY OFFICIALS HAVE GONE BALLISTIC OVER THIS LATEST CONGRESSIONAL DIKTAT NOT TO MENTION THE CONVENTIONAL PAVERS THEY'VE FOUND A SYMPATHETIC SHOULDER IN BOB CARR THE NEW BOSS OF THE HOUSE SUBCOMMITTEE DEALING WITH TRANSPORTATION MONEY MR CARR ADMITS TO DOUBTS ABOUT CONGRESS'S INFALLIBILITY AND WANTS THE MANDATE HELD UP FOR A YEAR THE ISSUE SEEMS TO HAVE PROMPTED A WASHINGTON EPIPHANY FOR THE NEW SECRETARY OF TRANSPORTATION FEDERICO PENA OVER THE SUMMER HE WROTE TO AL GORE AND HOUSE SPEAKER TOM FOLEY TO ADVISE AGAINST PLAYING RUBBER ROULETTE WITH THE HIGHWAY SYSTEM HIS LETTER APPARENTLY ANNOYED THE GREEN STAFFERS AT THE WHITE HOUSE AND EPA BUT CONGRESS DOESN'T LIKE TO ADMIT MISTAKES BESIDES IT HAS A NEW FRIEND IN THE RUBBER PAVEMENT ASSOCIATION A BRIGADE OF TIRESHREDDING COMPANIES WHO'VE TAKEN UP POSITIONS ALONG THE POTOMAC TO DEFEND THEIR ENTITLEMENT PROGRAM RIDING IN THE TURRET OF THE LEAD TANK IS PHOENIX BUSINESSMAN CARL JACOBSON WHOSE OTHER GREAT MISSION IS TO PERSUADE CONGRESS TO EXTEND HIS PATENTS ON THE RUBBERIZING PROCESS IF THE STATES ARE RIGHT THE MANDATE COULD END UP ADDING 1 BILLION A YEAR TO THE NATION'S ROADBUILDING BILL NO WONDER THE RUBBER ROAD CROWD IS HIGHLY MOTIVATED NOW WE DON'T KNOW WHETHER CRUMB RUBBER MAKES A GOOD ASPHALT ADDITIVE OR NOT BUT OBVIOUSLY NEITHER DOES CONGRESS ASPHALT COMES IN HUNDREDS OF DIFFERENT FLAVORS AND THE STATES KEEP ENGINEERS BUSY TRYING TO FIGURE OUT WHICH RECIPE WORKS BEST IN LIGHT OF LOCAL TRAFFIC PATTERNS AND WEATHER CONDITIONS CONGRESS ITSELF JUST SPENT 150 MILLION DEVELOPING TESTS SO ALL SORTS OF ASPHALTS COULD BE VETTED IN THE LAB FOR PROPENSITY TO RUT CRACK OR DISINTEGRATE SERIOUS PEOPLE HAVE BEEN EXPERIMENTING WITH RUBBERIZED ASPHALT FOR 20 YEARS INSTEAD OF IMPOSING A ONESIZEFITSALL SOLUTION COOKED UP IN SOME COMMITTEE ROOM MAYBE CONGRESS SHOULD LEAVE THE EXPERTS TO GET ON WITH THEIR JOBS EVEN AS IT GINNED UP THE RUBBER MANDATE CONGRESS BALKED AT A GENUINELY USEFUL PROVISION THAT WOULD HAVE ALLOWED ROAD BUILDERS TO OFFER WARRANTIES WITH THEIR WORK MEANWHILE THE LARGER LESSON SURELY IS THAT SOMEBODY IN WASHINGTON NEEDS TO GET A SENSE OF LIMITS CONGRESS HAS ITS HANDS FULL TRYING TO CONTAIN THE RUNAWAY PROGRAMS IT HAS ALREADY CREATED WITHOUT STEAMROLLING THE STATES WITH MORE BURDENS SEE RELATED LETTER LETTERS TO THE EDITOR LET'S SHRED THE MOUNTAINS OF OLD TIRES WSJ OCT 7 1993 9309070017 YY93 MM10 9310070045 930902 SCIENTISTS ARE ABUZZ OVER THE DECLINE OF THE GENTLE FIREFLY THE LIGHTNING BUGS' OF LORE FALL PREY TO DEVELOPMENT COLLECTORS EVEN CANNIBALS BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL WESTON MASS WHERE HAVE ALL THE FIREFLIES GONE ON A RECENT SULTRY SUMMER EVENING SARA LEWIS IS PROWLING THE FEW REMAINING MEADOWS IN SUBURBAN BOSTON TRYING TO FIND OUT ARMED WITH THERMOMETER STOPWATCH AND PENLIGHT THE TUFTS UNIVERSITY PROFESSOR SPOTS HARDLY A TWINKLE IN THE DUSK SHE FLASHES HER LIGHT AT THREESECOND INTERVALS MIMICKING THE SEDUCTION DANCE OF FIREFLY MALES A FEW QUICK FLIRTATIOUS FLASHES EMANATE FROM WINGLESS FEMALES PERCHED ON GRASS BLADES BELOW BUT TONIGHT NARY A MALE IS TO BE FOUND FIREFLIES THOSE ICONS OF SUMMER SEEM TO BE FADING FAST ACCORDING TO MS LEWIS AND A HANDFUL OF OTHER SCIENTISTS WHO STUDY THEM THE EVIDENCE TO DATE IS LARGELY ANECDOTAL BUT THE DECLINE IS BEING NOTED FROM THE PARKS AND SUBURBS OF AMERICA'S EAST COAST AND MIDWEST TO THE ONCE FIREFLYRICH FIELDS OF JAPAN PEOPLE CALL ME FROM ALL OVER SAYING THEY DON'T SEE AS MANY ANY MORE SAYS JAMES LLOYD A RESEARCHER AT THE UNIVERSITY OF FLORIDA AT GAINESVILLE SO CONCERNED ARE THE JAPANESE ABOUT THE DIMINISHING BUGS BELIEVED BY SOME TO BE THE SOULS OF THE DEAD THAT THEY HAVE SET UP SANCTUARIES TO PROTECT THEM JAPANESE HOTELS AND RESTAURANTS EVEN LURE GUESTS WITH FIREFLY DISPLAYS WHILE LITTLE IS BEING DONE IN THE US TO PROTECT THE INSECTS SOME CONSERVATION GROUPS ARE INCREASINGLY WORRIED IT POINTS TO A DECLINE IN THE ECOSYSTEM SAYS A SIERRA CLUB SPOKESMAN NO ONE CAN SAY FOR SURE JUST WHY THESE BELOVED BUGS OF SUMMER ACTUALLY BEETLES ARE ON THE WANE IN THE US ONE PREDATOR GOES BY THE DUBIOUS NAME OF THE FIREFLY SCIENTISTS CLUB OPERATED BY A ST LOUIS CHEMICAL COMPANY THAT PAYS A PENNY A BUG TO MEMBERS WHO COLLECT MILLIONS OF FIREFLIES A YEAR THE COMPANY SELLS THEM TO SCIENTISTS WHO USE THEIR LUMINESCENT MATERIAL IN BIOLOGICAL AND MEDICAL TESTING TO FERRET OUT POLLUTION AND EVEN CANCER A MORE FREQUENTLY BLAMED CULPRIT A DEARTH OF HOSPITABLE HABITATS WOODLANDS AND FIELDS HAVE GIVEN WAY TO CITIES AND SUBDIVISIONS BACKYARDS SPORT MORE STREET LIGHTS WHICH MAY INTERFERE WITH THE BUGS' MORSECODELIKE MATING RITUALS POLLUTION AND PESTICIDES HAVEN'T HELPED NOR HAS THE HUMPBACKED FLY A PARASITE WHOSE OOZING LARVAE DINE ON FIREFLY INNARDS EVEN WITHOUT THESE DIFFICULTIES THE FIREFLY'S LIFE HAS ALWAYS BEEN SOMETHING OF A FLASH IN THE PAN THE INSECTS HATCH AFTER TWO YEARS IN LARVAL STAGE THEN SPEND TWO WEEKS IN A MANIC PURSUIT OF SEX IF NOT EATEN BY BATS OR OTHER PREDATORS INCLUDING A CANNIBALISTIC RELATIVE KNOWN AS THE FEMME FATALE THEY MATE THEN DIE THEIR ENCHANTING FLASH THE STUFF OF LORE AND POETRY IS ACTUALLY A BIOCHEMICAL REACTION INVOLVING OXYGEN AND A COMPOUND CALLED LUCIFERASE BUT IT IS ALSO CORE TO THE MATING RITUAL FEMALES LOUNGE ON THE GRASS WHILE MALES SILENTLY WING AND FLASH THROUGH THE NIGHT AIR HOPING TO GET A WILLING FEMALE TO FLASH BACK FEMALES PLAY EXTREMELY HARD TO GET AND MOST MALES FIZZLE IN THE MATING GAME WHEN A MATCH IS MADE FIREFLIES ENGAGE IN ABOUT TWO HOURS OF FLIRTINGBYFLASHING THEN IT IS LIGHTS OUT AND THEY MATE UNTIL BIRDS SING IN THE APPROACHING DAWN MS LEWIS WHO IS RESEARCHING FIREFLY BEHAVIOR THINKS THE PICKY FEMALE CHOOSES A MATE BASED ON THE SIZE OF THE MALE'S LANTERN OR PERHAPS HIS PATTERN OF FLASHES AFTER MATING THE AVERAGE FEMALE PRODUCES ONLY ABOUT 50 TO 100 EGGS LAYING THEM OVER SEVERAL NIGHTS IN SHALLOW GROUND BECAUSE OF THIS FIREFLIES SEEM PARTICULARLY VULNERABLE TO EVEN THE SMALLEST DISTURBANCES IN THEIR HABITATS BUT IN SOME AREAS THE BUGS MUST ALSO CONTEND WITH COLLECTORS FOR THE FIREFLY SCIENTISTS CLUB AMONG THEM JUDY WOOD SHE IS SUCH A PROLIFIC FIREFLY GATHERER THAT SHE IS KNOWN AS THE LIGHTNING BUG LADY OF VINTON IOWA MRS WOOD A TEACHER'S ASSISTANT SENDS AS MANY AS A MILLION FIREFLIES A YEAR TO SIGMA CHEMICAL CO THE ST LOUIS DIVISION OF SIGMAALDRICH CORP IN TURN SELLS DESICCATED FIREFLY TAILS AND LANTERNS TO SCIENTISTS MRS WOOD PAYS THE 329 ADULTS AND CHILDREN ON HER PAYROLL A PENNY A BUG WHILE POCKETING SIGMA'S BONUSES OF 5 PER 5000 BUGS DELIVERED A FIREFLY COLLECTOR FOR 30 YEARS SHE IS AN EXPERT CATCHER HERSELF NETTING AS MANY AS A THOUSAND BUGS AN HOUR ON A GOOD NIGHT ONE TECHNIQUE SINCE ABANDONED INVOLVED HANGING A BUTTERFLY NET FROM THE WINDOW OF A MOVING PICKUP TRUCK SHE GAVE IT UP AFTER ONCE NETTING A BABY FOX BY MISTAKE FIREFLIES EARN MRS WOOD ABOUT 1000 A SUMMER MONEY SHE HAS USED TO PUT HER THREE CHILDREN THROUGH COLLEGE IF FIREFLIES ARE DIMINISHING IT IS NEWS TO MRS WOOD ALTHOUGH THE USUALLY FIREFLYTHICK FIELDS OF VINTON A HISTORICAL RIVER TOWN OF 5000 HAVE YET TO PRODUCE A BONANZA OF BUGS THIS SUMMER BUT MRS WOOD'S THEORY IS THE FIREFLY POPULATIONS ARE CYCLICAL PEOPLE KEEP SAYING OH THEY'RE GOING TO GET EXTINCT' BUT IT SEEMS TO RUN EVERY THIRD YEAR THAT THEY'RE REALLY FABULOUS SHE SAYS BUT MS LEWIS MAINTAINS THAT SUCH CLUBS ARE DANGEROUS SINCE COLLECTORS COULD UNWITTINGLY SNUFF OUT RARE FIREFLIES WHILE NETTING COMMON ONES THE US BOASTS ABOUT 200 SPECIES SOME WITH TINY POPULATIONS IT'S DIFFICULT TO BELIEVE THAT COLLECTING MILLIONS WOULDN'T HAVE AN IMPACT ON CERTAIN SPECIES SHE SAYS DR LLOYD SAYS HE KNOWS FIRSTHAND THAT SUCH CONCERNS ARE REAL TWO YEARS AGO HE SPOTTED A UNIQUE FIREFLY IN A CATTAIL MARSH IN NORTHWEST SOUTH CAROLINA ITS MATING SIGNAL WAS LIKE NO OTHER FOUR TO EIGHT QUICK FLASHES AT HALFSECOND INTERVALS THEN A PAUSE OF SIX TO EIGHT SECONDS BUT RETURNING THREE DAYS LATER FOR ANOTHER LOOK DR LLOYD FOUND THE SITE HAD BEEN BULLDOZED A YEAR LATER THE MARSH SPROUTED A GOLF COURSE WITH AN ARTIFICIAL WATERFALL BUT NO FIREFLIES MOREOVER SOME ARGUE THAT HARVESTING LIVE FIREFLIES IS UNNECESSARY SINCE THEIR ILLUMINATING SUBSTANCE HAS BEEN CLONED AND IS NOW PRODUCED SYNTHETICALLY SO WHY DOES SIGMA REMAIN IN THE FIREFLY BUSINESS IT'S MORE TRADITION SAYS GREG WALL SIGMA'S TECHNICAL SERVICE REPRESENTATIVE NOTING THAT SOME SIGMA CUSTOMERS PREFER THE 31AGRAM NATURAL ENZYME OVER THE SYNTHETIC ONE HE BELIEVES SIGMA HAS HAD LITTLE IF ANY IMPACT ON OVERALL POPULATIONS SINCE THE COMPANY BUYS ITS BUGS FROM AREAS OF ABUNDANCE SO WHAT'S A NIGHT WITHOUT FIREFLIES IT'S A LOT LESS THAN IT COULD BE SAYS MS LEWIS WHO THINKS THE FIREFLY'S TWINKLE IS PROOF THAT THERE IS A CERTAIN AESTHETIC PURPOSE TO BIODIVERSITY AND OF COURSE THE BEETLES PROVIDE FODDER NOT JUST FOR SCIENTISTS BUT POETS AS WELL THE JAPANESE HAVE WRITTEN REAMS OF HAIKU THEIR ELEGANT STYLISTIC POETRY ABOUT FIREFLIES IN AN 8TH CENTURY VERSE THE FIREFLY IS A METAPHOR FOR PASSIONATE LOVE FIREFLY VIEWING WAS ONCE A SPORT OF THE JAPANESE ARISTOCRACY THOUGH MODERNDAY FIREFLY FESTIVALS ATTRACT AS MANY AS 10000 COMMONERS FIREFLIES IN FACT ARE ONE OF THE FEW BUGS THAT PEOPLE WANT TO HAVE AROUND SEVERAL DECADES AGO SEATTLE AND PORTLAND ATTEMPTED TO IMPORT FIREFLIES WHICH AREN'T FOUND WEST OF THE ROCKY MOUNTAINS FOR THEIR PARKS THE BUGS TWINKLED LIKE LIGHTEDUP CHRISTMAS TREES FOR A SUMMER BUT NEVER REAPPEARED SEE RELATED LETTERS LETTERS TO THE EDITOR LIGHT AT THE END OF THE FIREFLY WSJ OCT 7 1993 9309020052 YY93 MM10 9310070058 930817 AT&T AGREES TO BUY MCCAW CELLULAR IN STOCK SWAP VALUED AT 126 BILLION BABY BELLS FEAR LOSING ROLE AS LONGDISTANCE LINK CELLULAR STOCKS RALLY BY JOHN J KELLER AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL CEMENTING ITS COMMAND OF WORLD TELECOMMUNICATIONS AMERICAN TELEPHONE & TELEGRAPH CO AGREED TO BUY MCCAW CELLULAR COMMUNICATIONS CO FOR 126 BILLION IN STOCK ACCELERATING THE STEPBYSTEP PURCHASE PLAN AT&T UNDERTOOK IN NOVEMBER COMBINING WITH MCCAW THE NATION'S LARGEST CELLULAR PHONE COMPANY ENABLES AT&T TO REDRAW THE GLOBAL COMMUNICATIONS LANDSCAPE IN A LEAP TOWARD ITS VISION OF PROVIDING TELEPHONE SERVICE ANYWHERE ANYTIME THE MERGER WOULD LINK MCCAW'S TWO MILLION CUSTOMERS TO AT&T'S LONGDISTANCE NETWORK WHICH NOW HAS 90 MILLION CUSTOMERS SETTING THE STAGE FOR WORLDWIDE WIRELESS PHONE SERVICE BY THE GLOBAL GIANT THE NEW BREADTH AND CLOUT OF AT&T'S REACH IMMEDIATELY STIRRED FEARS IN THE BABY BELL REGIONAL PHONE COMPANIES THAT THEIR FORMER PARENT WOULD CHALLENGE THEM IN THEIR FIELD OF LOCAL PHONE SERVICE A COMBINED AT&T AND MCCAW SAID FEDERAL COMMUNICATIONS COMMISSION CHAIRMAN JAMES QUELLO HAS THE POTENTIAL OF COURSE OF EVENTUALLY BYPASSING THE BELL COMPANIES' NETWORKS AND CUTTING THE MONEY THEY COLLECT IN ACCESS CHARGES FOR CONNECTING CELLULAR CALLS TO THEIR NETWORKS THAT MAY BE GOOD OR BAD WE'LL HAVE TO STUDY IT AT&T IS GOING TO ROLL OVER EVERYBODY ON THE HIGHWAY WARNED RONALD STOWE HEAD OF PACIFIC TELESIS GROUP'S WASHINGTON DC OFFICE AT&T IS ON AN ORGY OF REINTEGRATION AND UNLESS THE BELL COMPANIES AND OTHERS ARE FREE TO FORM ALLIANCES AND PERMITTED TO GET INTO THE SAME FULL RANGE OF BUSINESSES COMPETITION WILL SUFFER MR STOWE ASSERTED AT&T CHAIRMAN ROBERT E ALLEN IMMEDIATELY DISMISSED SUCH CONCERNS PEOPLE CAN GO SOMEWHERE ELSE IF THEY DON'T WANT OUR SERVICE HE SAID ADDING COMPETITION WORKS INCLUDING AT&T'S ASSUMPTION OF MCCAW'S 5 BILLION IN DEBT THE ACQUISITION WOULD RANK AS THE SECONDLARGEST IN US CORPORATE HISTORY BEHIND ONLY THE 306 BILLION LEVERAGED BUYOUT OF RJR NABISCO INC IN 1989 ACCORDING TO SECURITIES DATA CO LIKE THE YOUNG AT&T WHICH BEGAN MORE THAN A CENTURY AGO MCCAW BASED IN KIRKLAND WASH HAS RACKED UP HUGE IOUS AS IT MOVED RAPIDLY TO BUILD A NATIONWIDE CELLULAR NETWORK AHEAD OF RIVALS NEWS OF THE AGREEMENT SENT MCCAW'S CLASS A SHARES SURGING 5 TO 5625 IN NATIONAL OVERTHECOUNTER TRADING LIN BROADCASTING'S CLASS B STOCK JUMPED 1275 TO 115 IN NATIONAL OVERTHECOUNTER TRADING ON THE ASSUMPTION THAT AT&T IS LIKELY TO ACQUIRE THE 47 OF LIN SHARES THAT MCCAW DOESN'T OWN MCCAW ACQUIRED CONTROL OF LIN ANOTHER CELLULAR PHONE COMPANY IN 1990 OTHER CELLULAR STOCKS ALSO RALLIED AND DESPITE ITS COMPLAINT ABOUT THE TAKEOVER PACIFIC TELESIS ROSE 1375 TO 50875 REFLECTING ITS SUBSTANTIAL CELLULAR HOLDINGS AT&T FELL 1625 TO 6075 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE REFLECTING THE PROPOSED ISSUANCE OF ABOUT 210 MILLION NEW AT&T SHARES TO FINANCE THE PURCHASE WHICH IS EXPECTED TO DILUTE THE VALUE OF SHARES FOR AT&T'S CURRENT HOLDERS AT&T ALREADY HAS 134 BILLION SHARES OUTSTANDING AT&T'S MR ALLEN BELIEVES THE PURCHASE IS A SMALL PRICE TO PAY FOR THE INFLUENCE AND MARKETING POWER THAT MCCAW AND ITS WILY MANAGERS INCLUDING FOUNDER AND CHAIRMAN CRAIG MCCAW WILL BRING TO AT&T INDEED AT&T AT FIRST WANTED TO DEVOUR MCCAW A BITE AT A TIME AGREEING IN NOVEMBER TO BUY 33 OF THE COMPANY FOR 373 BILLION IN STOCK BUT AS OF FRIDAY MCCAW'S STOCK PRICE SOARED 92 WHILE AT&T'S SURGED 46 FROM NOVEMBER AT&T DECIDED IT WAS BETTER TO PAY MORE NOW THAN A LOT MORE LATER SAID JACK B GRUBMAN ANALYST AT PAINEWEBBER INC THEY DIDN'T WANT TO MAKE THE SAME MISTAKE WESTERN UNION DID LAST CENTURY WHEN IT PASSED UP A CHANCE TO GET ALL OF AT&T FOR A RELATIVE PITTANCE UNDER THE AGREEMENT EACH CLASS A AND CLASS B COMMON SHARE OF MCCAW STOCK WILL BE EXCHANGED FOR ONE AT&T SHARE TO KEEP THE VALUE OF THE TRANSACTION FROM FLUCTUATING TOO MUCH UP OR DOWN IF AT&T'S STOCK TRADES ABOVE 7173 MCCAW HOLDERS WILL GET ONLY 0909 SHARE IF IT GOES BELOW 53 HOLDERS OF EACH MCCAW SHARE WOULD RECEIVE 111 AT&T SHARES AT&T SAID IT EXPECTS TO COMPLETE THE TRANSACTION IN LESS THAN A YEAR AS IN THE NOVEMBER AGREEMENT AT&T WILL BUY THE 358 MILLION MCCAW SHARES A 22 STAKE OWNED BY BRITISH TELECOMMUNICATIONS PLC ANALYSTS SAID THEY EXPECT THE TRANSACTION TO DILUTE AT&T'S PERSHARE EARNINGS BY ABOUT 10 NEXT YEAR BUT THE SHORTTERM EARNINGS DILUTION IS WORTH IT ROBERT B MORRIS III AN ANALYST AT GOLDMAN SACHS & CO SAID POINTING OUT THAT CUSTOMERS WHO USE MCCAW'S NETWORK COULD GET DIRECT ACCESS TO AT&T'S LONGDISTANCE NETWORK BYPASSING LOCAL PHONE COMPANIES THAT CHARGE A STIFF FEE FOR PASSING CALLS TO AT&T AT THE MINIMUM MCCAW COULD PUT THE FEAR OF GOD INTO LOCAL PHONE COMPANIES TO LOWER THEIR ACCESS CHARGES TO AT&T HE SAID ADDING THAT EACH 1 CUT WOULD TRANSLATE INTO A 400 MILLION ANNUAL COST REDUCTION FOR AT&T THE BABY BELLS ARE LIKELY TO CHALLENGE THE AT&TMCCAW MERGER AS IT GOES THROUGH THE REGULATORY AND ANTITRUST APPROVAL PROCESS AT THE FEDERAL COMMUNICATIONS COMMISSION AND THE JUSTICE DEPARTMENT JAMES R YOUNG VICE PRESIDENT AND GENERAL COUNSEL AT PHILADELPHIABASED BELL ATLANTIC CORP ARGUED THAT THE GOVERNMENT SHOULDN'T ALLOW AT&T THE NATION'S BIGGEST LONGDISTANCE AND TELECOMMUNICATIONS EQUIPMENT COMPANY TO EXPAND INTO THE LOCAL PHONE ARENA THROUGH MCCAW WHILE BLOCKING THE BABY BELLS FROM COMPETING IN LONGDISTANCE SERVICE OUR POSITION WILL BE VERY STRAIGHTFORWARD WE WANT PARITY HE SAID ULTIMATELY CONSUMERS WILL BE HURT IF AT&T DOESN'T HAVE EFFECTIVE COMPETITION FCC CHAIRMAN QUELLO WAS KEEPING HIS OPTIONS OPEN A COMBINED AT&TMCCAW REPRESENTS A RESOUNDING ENDORSEMENT OF THE FUTURE POTENTIAL OF WIRELESS COMMUNICATIONS HE NOTED IN ITS FAVOR BUT THE AGENCY HE SAID PROBABLY WILL TAKE A FEW MONTHS TO REVIEW THE MATTER THE TRANSACTION WILL MAKE MR MCCAW WHO WILL JOIN AT&T'S BOARD ONE OF ITS LARGEST INDIVIDUAL SHAREHOLDERS HE CURRENTLY HOLDS 167 MILLION SHARES OR ABOUT 8 OF MCCAW STOCK VALUED AT 8684 MILLION AT FRIDAY'S MARKET PRICE OF 52 HIS AT&T STAKE BASED ON YESTERDAY'S CLOSING PRICE WOULD BE VALUED AT ABOUT 104 BILLION THE ORIGINAL 33 PROPOSAL HAD RAISED MANY THORNY QUESTIONS ABOUT THE COMPANIES' PLAN TO CREATE A NATIONAL CELLULAR SERVICE UNDER A LONGTERM LEASE OF THE AT&T BRAND NAME HOW WOULD THE TWO COMPANIES DIVIDE REVENUES FROM PACKAGE DEALS OFFERING CELLULAR AND LONGDISTANCE SERVICE WHICH BUSINESSES COULD MCCAW PURSUE ON ITS OWN AND WHICH WITH AT&T AT THE SAME TIME THE COMPANIES HAD TO WORRY ABOUT HOW TO DIVIDE UP THEIR RIGHTS TO DIFFERENT BUSINESSES AND TECHNOLOGIES ANY ONE OF WHICH COULD BECOME CRUCIAL TO THE FUTURE OF SEAMLESS WIRELESS TELECOMMUNICATIONS IF THE ALLIANCE BROKE UP AT&T OR MCCAW RISKED FINDING THEMSELVES YEARS BEHIND RIVALS IN SOME CRUCIAL SECTOR SO THEY DECIDED A TOTAL COMBINATION MADE MORE SENSE AND FOR ITS MONEY AT&T IS GETTING A VERY PROFITABLE COMPANY WHOSE EARNINGS HAVE BEEN DRAGGED DOWN BY AN EXTREMELY HEAVY DEBT LOAD SAID KENNETH LEON AN ANALYST AT LEHMAN BROTHERS IN 1992 MCCAW POSTED A PRETAX LOSS OF 169 MILLION WHICH INCLUDED 490 MILLION OF INTEREST EXPENSE THAT WILL NOW BE PICKED UP BY AT&T AT MORE FAVORABLE INTEREST RATES WITHOUT THOSE INTEREST EXPENSES MCCAW IS ACTUALLY QUITE PROFITABLE ITS OPERATING PROFIT WAS 260 MILLION IN 1992 MORE THAN DOUBLE ITS OPERATING PROFIT OF 116 MILLION IN 1991 STANDARD & POOR'S CORP HOWEVER INDICATED IT MAY DOWNGRADE AT&T'S LONGTERM DEBT AT&T'S MR ALLEN SAID WE THINK WE CAN HOLD OUR CREDIT RATINGS ALTHOUGH THERE MIGHT BE A SLIGHT DOWNTICK MR MCCAW WHOSE COMPANY HELPED LAUNCH THE GLOBAL CELLULAR PHONE INDUSTRY PUSHED HARD IN THE NEGOTIATIONS TO RETAIN SOME OPERATING INDEPENDENCE JAMES L BARKSDALE WHO JOINED MCCAW IN 1991 WILL REMAIN WITH MCCAW AND SERVE AS PRESIDENT AND CHIEF OPERATING OFFICER OF AT&T'S NEW WIRELESS SERVICE BUSINESS PRIOR TO JOINING MCCAW MR BARKSDALE WAS CHIEF OPERATING OFFICER AT FEDERAL EXPRESS THE MERGER ALSO RINGS UP A BIG PAYDAY FOR THREE WALL STREET SECURITIES FIRMS MORGAN STANLEY & CO AND LAZARD FRERES & CO WILL EACH RECEIVE 20 MILLION FOR ADVISING AT&T AND MCCAW AND SALOMON BROTHERS INC WILL RECEIVE 45 MILLION FOR ADVISING A COMMITTEE OF MCCAW DIRECTORS FORMED TO ENSURE THAT MCCAW'S SHAREHOLDERS WERE TREATED FAIRLY THE REVISED DEAL COMES AS AN UNEXPECTED BONUS FOR BRITISH TELECOM MORE THAN DOUBLING THE POTENTIAL PROFIT ON ITS FOURYEAROLD MCCAW INVESTMENT AND FUNDING ITS WAR CHEST FOR INTERNATIONAL EXPANSION THOSE EXPANSION PLANS HAVE BEEN GETTING INCREASINGLY GRANDIOSE AS EVIDENCED BY ITS AGREEMENT IN JUNE TO SNAP UP A 20 STAKE IN MCI COMMUNICATIONS INC AT&T'S NEAREST RIVAL IN THE US LONGDISTANCE MARKET THE MCI ALLIANCE TO BE COMPLETED BY MARCH 31 WILL PROBABLY COST BT MORE THAN 5 BILLION BT SAID IT PLANS TO SELL THE AT&T SHARES IT WILL RECEIVE AS SOON AS POSSIBLE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BT AMERICAN DEPOSITARY RECEIPTS ROSE 2125 TO 66375 MARY LU CARNEVALE IN WASHINGTON AND RICHARD L HUDSON IN LONDON CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR AT&T/MCCAW UNION NO THREAT TO BELLS WSJ OCT 7 1993 9308170055 YY93 MM10 9310060170 931006 WHO'S NEWS SANIFILL INC SANIFILL INC HOUSTON RALPH F COX WAS ELECTED A DIRECTOR OF THIS NONHAZARDOUS WASTE DISPOSAL COMPANY FILLING A VACANCY ON THE BOARD MR COX 60 YEARS OLD IS PRESIDENT OF HOUSTON'S GREENHILL PETROLEUM CORP A UNIT OF WESTERN MINING CORP OF AUSTRALIA 9310060169 931006 TEACHERS' PENSION PLAN TO GIVE FIRMS TOUGH EXAMS BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL AFTER YEARS OF BEING A MEEK INVESTOR TIAACREF HAS DECIDED TO BECOME A RULERWIELDING DISCIPLINARIAN THE GIANT RETIREMENT PLAN FOR TEACHERS IS JOINING THE RANKS OF SHAREHOLDER ACTIVISTS FORMALLY KNOWN AS THE TEACHERS INSURANCE AND ANNUITY ASSOCIATIONCOLLEGE RETIREMENT EQUITIES FUND TIAACREF IS THE WORLD'S LARGEST PENSION PLAN WITH 125 BILLION IN ASSETS SMALLER PENSION FUNDS SUCH AS CALIFORNIA'S HAVE LONG BEEN MUCH MORE VISIBLE AS SHAREHOLDERRIGHTS ACTIVISTS BUT TIAACREF TODAY WILL ANNOUNCE A CORPORATE GOVERNANCE POLICY AND MAIL IT TO ALL 1500 COMPANIES IN WHICH IT HOLDS STOCK THAT POLICY SPELLS OUT HALLMARK PRINCIPLES THAT TIAACREF BELIEVES WILL LEAD TO BETTER CORPORATE PERFORMANCE NOT TO MENTION HIGHER PRICES FOR STOCKS OF WHICH TIAACREF HOLDS 52 BILLION LEADING THE CHARGE IS CHAIRMAN JOHN BIGGS CHIEF EXECUTIVE OFFICER OF TIAACREF SINCE JANUARY HE HAD SERVED AS PRESIDENT FOR FOUR YEARS BEFORE THAT HE LIKENS THE FUND'S NEW POLICY TO A LION CHASING A HERD OF WILDEBEESTS THE SIGNIFICANCE IS NOT THE THREE OR FOUR LAGGARDS YOU CATCH IT'S THAT YOU GET THE HERD TO RUN HE SAID WE NEED TO SCARE ALL THE ANIMALS MR BIGGS SAID HE BELIEVES HIS FUND'S PROPER ROLE IS TO PRESS CONTINUOUSLY FOR INDEPENDENT BOARDS THAT ARE DIVERSE AND THAT SERVE AS EVALUATORS OF THE CEO'S PERFORMANCE WE ARE NOT BUSINESS STRATEGISTS TIAACREF WILL PUSH FOR CORPORATE BOARDS TO HAVE A MAJORITY OF INDEPENDENT DIRECTORS PEOPLE CHOSEN FROM OUTSIDE THE COMPANY'S MANAGEMENT RANKS THE GOAL IS TO SHARPEN THE ACCOUNTABILITY OF DIRECTORS TO SHAREHOLDERS ACCORDING TO THE POLICY STATEMENT MR BIGGS SAID MOMENTUM FOR A MORE ACTIVE ROLE HAD BEEN BUILDING FOR A LONG TIME BY MAKING CLEAR THAT THE FUND IS WILLING TO VOTE AGAINST DIRECTORS WHERE COMPANIES DON'T HAVE AN EFFECTIVE INDEPENDENT BOARD CHALLENGING THE CEO TIAACREF WIELDS A POWERFUL ARSENAL THE MOST EXTREME STEP HE SAYS WOULD BE TO VOTE AGAINST DIRECTORS CHALLENGING THE REPUTATION OF THE DIRECTORS AND THE COMPANIES BUT THE FUND ISN'T PUSHING FOR SOME MEASURES LONG FAVORED BY OTHER SHAREHOLDER RIGHTS' GROUPS SUCH AS SEPARATING THE POSTS OF CEO AND CHAIRMAN ONE BIG PENSION FUND WITH 80 BILLION IN ASSETS THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM HAS REGULARLY GRABBED HEADLINES FOR ITS EFFORTS TO FORCE POORLY PERFORMING COMPANIES TO CHANGE THEIR WAYS IN CONTRAST TIAACREF'S NAME RARELY SURFACED PUBLICLY BEHIND THE SCENES THOUGH THE TEACHERS' GROUP SAYS IT HAS OCCASIONALLY BEEN MORE AGGRESSIVE IN EARLY MAY FOR INSTANCE TIAACREF SAYS IT CALLED ABOUT 20 OTHER PENSION FUNDS TO ENCOURAGE THEM TO VOTE AGAINST THREE EASTMAN KODAK CO DIRECTORS RUNNING FOR REELECTION MR BIGGS SAID HIS FUND WITHHELD SUPPORT FOR THE DIRECTORS TO PROTEST THE COMPANY'S INSUFFICIENT COST CUTS SYMBOLIZED BY THE ABRUPT DEPARTURE OF THE COMPANY'S CHIEF FINANCIAL OFFICER CHRISTOPHER STEFFEN MR BIGGS SAID WHAT HE SEES AS KODAK'S FOOTDRAGGING ON COSTCONTAINMENT WAS AN IN YOUR FACE ACTION AGAINST SHAREHOLDERS DEMANDING BETTER PROFITS MR BIGGS SAID THE FUND TOOK A SIMILAR STAND IN MAY 1992 TO PROTEST THE FAILURE OF SEARS ROEBUCK & CO TO IMPROVE EARNINGS THE FUND ALSO HAS PERIODICALLY FILED SHAREHOLDER PROXY RESOLUTIONS TO OPPOSE CORPORATE ANTITAKEOVER EFFORTS TIAACREF'S ASSERTIVENESS COMES AT A TIME WHEN IT'S EASIER FOR SHAREHOLDER GROUPS TO COORDINATE EFFORTS THANKS TO A RULE CHANGE LAST FALL BY THE SECURITIES AND EXCHANGE COMMISSION ALLOWING SHAREHOLDER GROUPS TO TALK WITHOUT MEETING ELABORATE NOTIFICATION AND FILING PROCEDURES WHILE SOME INVESTOR ACTIVISTS ARE DREAMING UP WAYS TO TEAM WITH TIAACREF ON INITIATIVES DURING THE COMING PROXY SEASONS SUCH COOPERATION ISN'T IN THE CARDS MR BIGGS SAID IN GENERAL MR BIGGS SAYS HE IS WARY OF CREATING INSTITUTIONALINVESTOR COALITIONS THAT COULD CONTROL 50 OF A COMPANY'S STOCK IT BOTHERS ME TO SEE INSTITUTIONAL INVESTORS AMASS POWER IN A WAY THAT I DON'T BELIEVE IS LEGITIMATE HE SAID ADDING THAT SUCH AGGREGATIONS COULD PROMPT A BACKLASH FROM THE PUBLIC AND POLITICIANS FOR BIG FUNDS SUCH AS TIAACREF SELLING A POOR PERFORMER'S STOCK USUALLY ISN'T AN OPTION FOR ONE THING TIAACREF AND OTHERS MODEL A LARGE PART OF THEIR STOCK INVESTING TO MATCH MARKET INDEXES AND THUS ARE LOCKED INTO OWNERSHIP OF CERTAIN COMPANIES AND THEIR STAKES CAN BE SO BIG TIAACREF OWNS FROM 1 TO 10 OF COMPANIES THAT SELLING SHARES COULD CAUSE PRICES TO PLUMMET MANY INVESTOR ACTIVISTS ARE ECSTATIC ABOUT A MORE AGGRESSIVE TIAACREF THEY ARE SO MASSIVE THAT ANYTHING THEY DO WOULD MAKE A RIPPLE IN THE WATER SAID ANNE HANSEN DEPUTY DIRECTOR OF THE COUNCIL OF INSTITUTIONAL INVESTORS IN WASHINGTON AN ACTIVIST GROUP REPRESENTING ABOUT 86 PENSION PLANS CORPORATIONS ACKNOWLEDGE THAT TIAACREF IS A FORCE TO BE RECKONED WITH JEREMY BACON WHO WROTE A REPORT ON CORPORATE GOVERNANCE FOR THE CONFERENCE BOARD A BUSINESSBACKED GROUP CALLED THE TEACHERS' FUND A HUGE ORGANIZATION WITH POWER TO ARMTWIST CORPORATE AMERICA A LOT OF PEOPLE WHO FEEL THAT BOARDS HAVE BEEN REMISS WILL FEEL THIS IS A REASON TO CHEER CORPORATE MANAGEMENT WILL FEEL THAT THIS IS SOMEBODY ELSE ON THEIR BACK BUT IT'S SOMEONE THEY CAN'T POSSIBLY IGNORE THE TEACHERS' GROUP IS STILL WORKING OUT DETAILS SUCH AS HOW IT WILL WIELD ITS RULER ONE ISSUE IS HOW EXACTLY TO GRADE COMPANIES BECAUSE TIAACREF INDEXES TWOTHIRDS OF ITS STOCK PORTFOLIO IT DOESN'T HAVE A BIG STAFF OF ANALYSTS WHO CAN TAKE ON ADDED CHORES TIAA ACTIVELY MANAGES ONLY ABOUT 100 STOCKS MR BIGGS SAID HE IS UNWILLING TO SACRIFICE MORE THAN 01 PERCENTAGE POINT IN ANNUAL RETURN TO FIGHT FOR BETTER CORPORATE GOVERNANCE PRACTICES BUT HE BELIEVES THERE ARE SOME RELATIVELY LOWCOST WAYS TO MONITOR THE PERFORMANCE OF COMPANIES AMONG OPTIONS BEING CONSIDERED CONTRACTING RETIRED CEOS AND TEAMING THEM WITH BUSINESSSCHOOL STUDENTS SPECIFICALLY TIAACREF IS ENCOURAGING COMPANIES TO LOAD BOARDS WITH INDEPENDENT DIRECTORS TO DIVERSIFY THE BACKGROUNDS OF DIRECTORS TO ENSURE A MIX OF VIEWPOINTS AND TO REQUIRE DIRECTORS TO OWN COMMON SHARES SO THAT THEIR INTERESTS MATCH THOSE OF SHAREHOLDERS OTHER GUIDELINES STRESS THE NEED FOR PERFORMANCELINKED PAY 9310060168 931006 TUESDAY'S MARKETS GROWING GLOOM ERASES A RALLY IN STOCK MARKET BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL AN EARLY STOCK MARKET RALLY FADED IN THE AFTERNOON AMID WEAKENING SEMICONDUCTOR SHARES BOND PRICES FELL AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE ROSE 950 POINTS TO 358726 STANDARD & POOR'S 500STOCK INDEX EDGED DOWN 014 TO 46120 AND THE NASDAQ COMPOSITE INDEX FELL 257 TO 76227 THE INDUSTRIAL AVERAGE STARTED THE DAY ON AN UPBEAT NOTE SURGING MORE THAN 21 POINTS IN EARLY TRADING PARTLY BECAUSE OF STRONG OVERSEAS MARKETS AND AN EASING OF TENSIONS IN RUSSIA BUT BY THE CLOSE INVESTORS HAD TURNED THEIR ATTENTION TO DOMESTIC ECONOMIC CONCERNS AND EXPECTATIONS THAT THE US STOCK MARKET MAY BE HEADED FOR A PERIOD OF SLUGGISHNESS DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS SAID INVESTORS ARE INCREASINGLY WORRIED ABOUT EARNINGS HE POINTED TO ADVANCED MICRO DEVICES WHICH TUMBLED 4 3/4 TO 22 AFTER REPORTING THAT THIRDQUARTER EARNINGS GREW BUT NOT AS MUCH AS ANALYSTS HAD EXPECTED THE CHIP MAKER'S PLUNGE HELPED DEPRESS OTHER SEMICONDUCTOR STOCKS AND TAKE THE WIND OUT OF THE STOCK MARKET'S ADVANCE THE EARNINGS SEASON IS GOING TO BE A DISAPPOINTMENT MR SHULMAN SAID EARNINGS WILL BE UP BUT NOT AS MUCH AS PEOPLE THINK AND ADVANCED MICRO WAS AN EXAMPLE OF THAT OVERSEAS EUROPEAN STOCK MARKETS SHOT HIGHER PARTLY BECAUSE OF EXPECTATIONS OF LOWER INTEREST RATES IN GERMANY THE DAX INDEX SOARED 26 TO A RECORD FRENCH STOCKS BOOSTED BY THE PUBLIC OFFERING OF BANQUE NATIONALE DE PARIS CLIMBED 14 BRITISH SHARES ROSE 06 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 032 TO 11226 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2836 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1010 ISSUES ROSE AND 1001 FELL BOND PRICES EASED THE TREASURY'S BENCHMARK 30YELL LESS THAN 1/8 POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 6 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16260 MARKS AND 10575 YEN COMPARED WITH 16238 MARKS AND 10580 YEN MONDAY 9310060167 931006 WHO'S NEWS PEPSICO INC PEPSICO INC PURCHASE NY MICHAEL FEINER 51 YEARS OLD WAS APPOINTED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT OF PERSONNEL FOR EUROPE AT THIS BEVERAGE SNACKFOOD AND RESTAURANT CONCERN MR FEINER WAS HEAD OF WORLDWIDE PERSONNEL AT PEPSICOLA NORTH AMERICA AND PEPSICOLA INTERNATIONAL 9310060166 931006 WHO'S NEWS ARTHUR ANDERSEN & CO ARTHUR ANDERSEN & CO NEW YORK RICHARD M SPIVAK 44 YEARS OLD WAS NAMED PARTNERINCHARGE OF THIS ACCOUNTING FIRM'S METRO NEW YORK TAX PRACTICE AND MANAGING PARTNER OF THE NORTHEAST REGION MR SPIVAK HAD BEEN IN CHARGE OF THE HOUSTON OFFICE TAX DIVISION AND DEPUTY MANAGING PARTNER FOR THE SOUTHWEST REGION MR SPIVAK SUCCEEDS SOL UPBIN 54 WHO WAS APPOINTED WORLDWIDE MANAGING PARTNER OF CORPORATE FINANCE SERVICES 9310060165 931006 WHO'S NEWS TEREX CORP TEREX CORP WESTPORT CONN RONALD M DEFEO 42 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS HEAVYEQUIPMENT MANUFACTURER MR DEFEO FORMERLY SERVED AS ACTING PRESIDENT OF TEREX CORP'S CORE AFFILIATE CLARK MATERIAL HANDLING CO HE SUCCEEDS RANDOLPH W LENZ WHO TEMPORARILY HELD THE POSITION OF PRESIDENT AFTER THE DEATH OF WOODWARD K BALDUS IN 1991 9310060164 931006 FINANCING BUSINESS STRONGSVILLE SAVINGS BANK STRONGSVILLE SAVINGS BANK STRONGSVILLE OHIO SAID IT WILL OFFER 280000 COMMON SHARES TO THE PUBLIC AT 26 A SHARE THE BANK WAS FORMERLY A PRIVATE STOCK COMPANY WITH 934300 COMMON SHARES OUTSTANDING UNDERWRITER FOR THE OFFERING IS MCDONALD & CO SECURITIES INC WHICH HAS AN OVERALLOTMENT OPTION TO BUY UP TO AN ADDITIONAL 42000 SHARES OF STOCK 9310060163 931006 BUSINESS BRIEF DNX HALTS BLOODSUBSTITUTE RESEARCH CITING FAILURE TO GET FINANCIAL BACKING PRINCETON NJ BIOTECHNOLOGY CONCERN DNX CORP SAID IT DECIDED TO HALT DEVELOPMENT OF A PIGDERIVED BLOOD SUBSTITUTE AFTER FAILING TO FIND FINANCIAL SUPPORT FOR THE PROJECT DNX PLANS TO DIRECT MORE FUNDS TO ITS XENOGRAFT PROGRAM WHICH INVOLVES DEVELOPING ORGANS IN OTHER ANIMALS FOR TRANSPLANT INTO HUMANS THE COMPANY RECENTLY REPORTED THAT IT HAD SUCCEEDED IN INTRODUCING HIGHLY SPECIALIZED HUMAN GENES INTO PIGS MUCH OF 25 MILLION THE COMPANY INVESTED INTO DEVELOPING GENETICALLY ALTERED ANIMALS FOR ITS BLOODSUBSTITUTE PROGRAM ALSO AIDED ITS XENOGRAFT PROGRAM SAID PRESIDENT AND CHIEF EXECUTIVE PAUL J SCHMITT IN OVERTHECOUNTER TRADING YESTERDAY DNX SHARES ROSE 375 CENTS A SHARE TO 475 THE MOVE WOULD DRAMATICALLY CUT THE COMPANY'S BURN RATE OR THE RATE AT WHICH IT IS USING UP INVESTMENT CAPITAL FOR THE LAST YEAR THE COMPANY HAS AVERAGED A BURN RATE OF 1 MILLION A MONTH SAID MR SCHMITT WHO PREDICTED THAT THE RATE WOULD HAVE GONE UP SUBSTANTIALLY AS THE COMPANY MOVED ON TO PRECLINICAL STUDIES OF ITS BLOOD SUBSTITUTE IN LARGER ANIMALS AND HUMAN TESTING THE COMPANY SAID IT WILL HAVE TO MAKE SUBSTANTIAL REDUCTIONS AMONG THE 100 EMPLOYEES WORKING IN ITS THERAPEUTIC RESEARCH ARM WHICH INCLUDES THE BLOODSUBSTITUTE AND XENOGRAFT PROJECTS THE 250 WORKERS IN ITS PHARMAKON BUSINESS WHICH PERFORMS PRECLINICAL DRUG TRIALS FOR PHARMACEUTICAL AND BIOTECHNOLOGY COMPANIES WOULD NOT BE AFFECTED BY THE CUTBACKS MR SCHMITT SAID DNX WILL MAKE AN ANNOUNCEMENT FRIDAY ABOUT THE WORK FORCE REDUCTIONS AND THE BURN RATE MR SCHMITT SAID THE COMPANY APPROACHED SEVERAL PHARMACEUTICAL COMPANIES ABOUT TESTING AND MASS PRODUCING THE BLOOD SUBSTITUTE BUT THE FIVEYEAR 150 MILLION INVESTMENT DISCOURAGED COMPANIES FACING FINANCIAL PRESSURES OF THEIR OWN MR SCHMITT SAID MOST DRUG COMPANIES ARE NOW PRIORITIZING PROJECTS AND LOOKING FOR NEARTERM RETURNS ANALYSTS WELCOMED DNX'S DECISION TO SHUT DOWN ITS BLOODSUBSTITUTE RESEARCH AND FOCUS ON THE XENOGRAFT PROGRAM IT'S THE ONLY DECISION THE COMPANY COULD HAVE MADE IN LIGHT OF MAJOR QUESTIONS ABOUT POTENTIAL DEMAND FOR BLOOD SUBSTITUTES AND THE COMPLEXITIES OF REPLICATING HUMAN HEMOGLOBIN SAID HAMBRECHT & QUIST INC ANALYST ALEX ZISSON THE COMPANY WOULD HAVE HAD TO SPEND A LOT OF MONEY TO ANSWER THOSE QUESTIONS BUT THE EARLY DATA FOR THE XENOGRAFT PROGRAM HAVE BEEN VERY ENCOURAGING WE THINK XENOGRAFT TRANSPLANTS COULD OCCUR AS EARLY AS LATE 1996 9310060162 931006 WHO'S NEWS HERSHEY FOODS NAMES WOLFE CHAIRMAN CEO BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL HERSHEY PA HERSHEY FOODS CORP NAMED KENNETH L WOLFE CHAIRMAN AND CHIEF EXECUTIVE OF THE CANDY AND PASTA COMPANY MR WOLFE CURRENTLY HERSHEY'S PRESIDENT AND CHIEF OPERATING OFFICER WILL SUCCEED RICHARD A ZIMMERMAN WHO ANNOUNCED YESTERDAY THAT HE WILL RETIRE AT THE END OF THE YEAR UNDER MR ZIMMERMAN HERSHEY PULLED AHEAD OF ITS RIVAL MARS INC IN THE BATTLE FOR THE NO 1 SPOT IN THE US CONFECTIONERY MARKET MR ZIMMERMAN WILL DEPART WITH THE COMPANY'S STOCK SLIGHTLY OUTPERFORMING THE S&P 500 FOR THE FIRST NINE MONTHS OF THE YEAR A NOTEWORTHY ACHIEVEMENT CONSIDERING THE S&P FOOD GROUP IS DOWN 23 FOR THE SAME PERIOD HERSHEY'S STOCK DROPPED EARLIER IN THE YEAR WHEN THE COMPANY SAID IT WOULD REPORT WEAK RESULTS FOR THE SECOND QUARTER BUT THE STOCK HAS REBOUNDED SINCE THEN IN AN INTERVIEW LAST NIGHT MR ZIMMERMAN REITERATED HIS FORECAST THAT HERSHEY WOULD POST RECORD RESULTS THIS YEAR HERSHEY ANNOUNCED THE MANAGEMENT CHANGES AFTER THE MARKET CLOSED HERSHEY SHARES CLOSED DOWN 25 CENTS YESTERDAY AT 5012 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WHILE DOMINATING THE US MARKET HERSHEY HAS BEEN LESS SUCCESSFUL IN ESTABLISHING A FOOTHOLD IN THE IMPORTANT EUROPEAN CANDY MARKET HERSHEY HAS BEEN OUTBID BY PHILIP MORRIS COS IN THREE SEPARATE ATTEMPTS TO EXPAND IN EUROPE ANALYSTS SAID THAT DOESN'T INCLUDE THE RECENT ACQUISITION OF LITHUANIA'S LEADING CHOCOLATE CONFECTIONERY COMPANY BY KRAFT JACOBS SUCHARD A PHILIP MORRIS UNIT PHILIP MORRIS WHICH HAS SPENT MORE THAN 5 BILLION BUYING CANDY COMPANIES IN RECENT YEARS LAST YEAR OUTBID HERSHEY FOR FREIA MARABOU AS A SCANDINAVIAN CHOCOLATE AND SNACK MAKER MR ZIMMERMAN CALLED THE LOSS OF FREIA MARABOU YESTERDAY'S BREAKFAST AND SAID THE COMPANY HAS PLENTY TO DO IN NORTH AMERICA HE ALSO SAID THE COMPANY WAS POSITIONING ITSELF TO EXPAND IN EUROPE AND THE FAR EAST MR WOLFE 54 HAS BEEN WITH HERSHEY SINCE 1967 AND HAS HELD NUMEROUS POSITIONS INCLUDING CHIEF FINANCIAL OFFICER JOSEPH P VIVIANO 55 WILL SUCCEED MR WOLFE AS PRESIDENT AND CHIEF OPERATING OFFICER MR VIVIANO HAD BEEN PRESIDENT OF HERSHEY CHOCOLATE USA HERSHEY HAS NOT YET NAMED MR VIVIANO'S SUCCESSOR 9310060161 931006 DELMARVA POWER'S RATE INCREASE WILMINGTON DEL DELMARVA POWER & LIGHT CO SAID STATE REGULATORS APPROVED AN AGREEMENT WITH PARTICIPATING CUSTOMERS THAT CALLS FOR A 249 MILLION OR 37 INCREASE IN ELECTRICITY RATES THE COMPANY ORIGINALLY REQUESTED A 416 MILLION OR 58 INCREASE DELMARVA SAID MOST OF THE RATE INCREASE IS FOR A NEW COMBINEDCYCLE POWER PLANT THAT HARNESSES WASTED ENERGY FROM EXISTING POWER FACILITIES 9310060160 931005 QUARTERLY MUTUAL FUNDS REVIEW SHERMAN DEAN TURNS INTO CLOSEDEND FUND NEW YORK SHERMAN DEAN FUND CONVERTED TO A CLOSEDEND FUND IN SEPTEMBER SHERMAN DEAN HAD BEEN ONE OF THE FEW MUTUAL FUNDS TO LOSE MONEY FOR THE 10 YEARS THROUGH AUG 31 ACCORDING TO MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER THE FUND LOST 145 A YEAR ON AVERAGE IN THOSE 10 YEARS IN CONVERTING TO A CLOSEDEND FUND THE SHARES OF SHERMAN DEAN ARE NOW PUBLICLY TRADED RATHER THAN BEING BOUGHT AND SOLD BY THE FUND COMPANY ITSELF WHEN INVESTORS SELL SHARES OF AN OPENEND FUND THEY SHRINK THE ASSETS OF THE FUND BUT THE PORTFOLIO OF A CLOSEDEND FUND IS UNCHANGED BY SHAREHOLDERS' SELLING WHICH AFFECTS ONLY THE SHARE PRICE 9310060159 931006 FINANCING BUSINESS CONTINENTAL HOMES HOLDING CORP CONTINENTAL HOMES HOLDING CORP SCOTTSDALE ARIZ SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF 21 MILLION COMMON SHARES OF THE SHARES TO BE OFFERED 16 MILLION WOULD BE SOLD BY THE HOMEBUILDER AND 500000 SHARES WOULD BE SOLD BY CURRENT SHAREHOLDERS THE COMPANY SAID PROCEEDS WOULD BE USED TO REDEEM THE SERIES A PREFERRED STOCK AND TO REDUCE DEBT TEMPORARILY 9310060158 931006 INTERNATIONAL BIG ISRAELI FIRM AND PALESTINIANS GO INTO BUSINESS KOOR GHUSSEIN GROUP PLAN A PARTNERSHIP TO INVEST IN WEST BANK GAZA STRIP BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL TEL AVIV LESS THAN A MONTH AFTER ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION SIGNED A PEACE ACCORD GRANTING THE PALESTINIANS SELFRULE IN THE WEST BANK CITY OF JERICHO AND THE GAZA STRIP THE TWO OLD ENEMIES ARE SET TO DO BUSINESS TOGETHER KOOR INDUSTRIES LTD ISRAEL'S LEADING INDUSTRIAL CONCERN AND A GROUP OF PALESTINIAN INVESTORS REPRESENTED BY JAWID GHUSSEIN HEAD OF THE PALESTINE NATIONAL FUND AND A MEMBER OF THE PLO RULING BODY THE PALESTINIAN NATIONAL COUNCIL HAVE AGREED TO BECOME PARTNERS IN A HOLDING COMPANY THAT WILL MAKE INVESTMENTS IN COMPANIES AND INFRASTRUCTURE PROJECTS IN THE WEST BANK AND GAZA STRIP ACCORDING TO ISRAELI AND PALESTINIAN SOURCES THE OTHER TWO PARTNERS IN THE VENTURE ARE THE SPANISH INVESTMENT BANK BANESTO AND ONA A MOROCCAN INDUSTRIAL CONCERN MOROCCO DOES NOT HAVE OFFICIAL TIES WITH THE JEWISH STATE EACH PARTNER HAS AGREED TO PUT UP 15 MILLION IN CAPITAL WITHIN A YEAR THE HOLDING COMPANY PLANS TO GO PUBLIC ON THE US STOCK MARKET IN AN EFFORT TO RAISE AN ADDITIONAL 100 MILLION TO 150 MILLION FOR INVESTMENT IN SUCH PROJECTS AS A CEMENT FACTORY IN THE WEST BANK TELECOMMUNICATIONS AND ELECTRONICS COMPANIES AND AN INTERNATIONAL DISTRIBUTION SYSTEM FOR PALESTINIAN PRODUCTS THIS IS A JOINT VENTURE BETWEEN ISRAEL'S MOST IMPORTANT INDUSTRIAL CONGLOMERATE AND THE PALESTINIANS' MOST IMPORTANT BUSINESS LEADER SAYS OFER BRONSTEIN GENERAL MANAGER OF THE INTERNATIONAL CENTER FOR PEACE IN TEL AVIV WHO HELPED ARRANGE CONTACTS WITH THE PALESTINIANS THE ONLY WAY TO BUILD PEACE BETWEEN ISRAELIS AND PALESTINIANS IS TO CREATE STRONG ECONOMIC TIES THE DEAL WHICH IS EXPECTED TO BE SIGNED WITHIN TWO MONTHS IS UNPRECEDENTED FOR ANOTHER REASON ACCORDING TO PEOPLE FAMILIAR WITH THE TERMS OF THE AGREEMENT ONCE A PALESTINIAN SELFGOVERNING AUTHORITY IS ESTABLISHED IN JERICHO AND GAZA THIS NEW GOVERNMENTAL ENTITY ALSO WILL BECOME A PARTNER IN THE HOLDING COMPANY KOOR BASED IN TEL AVIV HAS 26 BILLION IN SALES AND INTERESTS IN CONSTRUCTION CHEMICALS FOODSTUFFS AND TELECOMMUNICATIONS THAT ACCOUNT FOR 10 OF ISRAELI INDUSTRY A LIST OF THE COMPANY'S SHAREHOLDERS INDICATES THE FULL SIGNIFICANCE OF THE PROSPECTIVE ECONOMIC PARTNERSHIP THE ISRAELI GOVERNMENT OWNS 78 OF KOOR AND TWO OF THE MOST POWERFUL INSTITUTIONS IN THE ISRAELI ECONOMY THE ECONOMIC ARM OF THE HISTADRUT NATIONAL TRADE UNION FEDERATION AND A SUBSIDIARY OF ISRAEL'S LARGEST BANK BANK HAPOALIM EACH OWN MORE THAN 23 OF COMPANY STOCK THE IDEA FOR THE HOLDING COMPANY GREW OUT OF THE PEACE PROJECT THE BRAINCHILD OF BENJAMIN GAON KOOR'S CHIEF EXECUTIVE OFFICER WHO ONE YEAR AGO SET UP A DEPARTMENT TO GATHER ECONOMIC DATA RELATING TO THE BUSINESS POTENTIAL OF THE ARAB POPULATION OF JUDEA AND SAMARIA THE WEST BANK AND DEVELOPMENT OF POTENTIAL BUSINESS CONTACTS THROUGH THAT POPULATION WITH THE NEIGHBORING ARAB COUNTRIES ACCORDING TO A RECENT COMPANY EARNINGS REPORT MEETINGS IN LONDON MOROCCO AND THE WEST BANK RESULTED IN THE AGREEMENT WHICH MR GAON SAYS HAS ISRAELI PRIME MINISTER YITZHAK RABIN'S BACKING THE IDEA WAS TO CREATE A BUSINESS VEHICLE WHICH WOULD ENABLE ENTREPRENEURS ON BOTH SIDES TO BE INVOLVED WITH UNLIMITED NUMBERS OF VENTURES SAYS MR GAON SO FAR BOTH THE ISRAELIS AND THE PALESTINIANS HAVE BEEN RELUCTANT TO TALK ON THE RECORD ABOUT THE DEAL MR GAON SAYS KOOR IS WARY OF BEING PERCEIVED BY PALESTINIANS AS WANTING TO EXCHANGE POLITICAL COLONIALISM FOR ECONOMIC COLONIALISM AND STRESSES THAT KOOR WILL ALWAYS BE A MINORITY SHAREHOLDER IN ADDITION MR GAON POINTED OUT THAT THE HOLDING COMPANY WILL HAVE A PALESTINIAN PRESIDENT AND WILL INVEST IN PROJECTS ACCORDING TO ECONOMIC PRIORITIES SET BY THE PALESTINIANS WE CAN'T SPEED UP ECONOMIC TIES BEFORE SUSPICION IS ELIMINATED MR GAON SAYS ON THE PALESTINIAN SIDE THERE'S BOTH FEAR OF GETTING TOO FAR OUT IN FRONT OF THE ARAB COUNTRIES STILL AT WAR WITH ISRAEL AND CONCERN THAT AN ISRAELI ECONOMIC JUGGERNAUT IS ABOUT TO BE UNLEASHED ON THEIR FRAGILE ECONOMY ISRAEL MUST BE AN OPTION NOT A FATE AND PREFERENCE MUST BE GIVEN TO PALESTINIAN COMPANIES SAYS SAMIR HULLEILAH A LEADING PALESTINIAN ECONOMIST BUT AT THE SAME TIME WE RECOGNIZE THAT ECONOMIC COOPERATION WITH THE ISRAELIS IS THE ONLY SOLUTION FOR THE PROBLEMS OF OUR SMALL ECONOMY 9310060157 931006 HOUSE MEASURE TIGHTENS CONTROL OF BOND MARKET BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE HOUSE APPROVED LEGISLATION TO STRENGTHEN REGULATION OF THE GOVERNMENT SECURITIES MARKET THE MEASURE WHICH WOULD PLACE NEW CONTROLS ON SALES PRACTICES AND IMPOSE NEW REPORTING AND RECORDKEEPING REQUIREMENTS NOW MUST BE RECONCILED WITH A NARROWER BILL PASSED BY THE SENATE THE FINAL VERSION IS EXPECTED TO CLOSELY RESEMBLE THE HOUSE BILL WHICH IS SUPPORTED BY THE TREASURY AND SECURITIES AND EXCHANGE COMMISSION THE LEGISLATION APPROVED BY VOICE VOTE IS DESIGNED CHIEFLY TO FILL REGULATORY GAPS REVEALED BY THE SALOMON BROTHERS INC TREASURY BOND SCANDAL IT WOULD AUTHORIZE THE TREASURY TO REQUIRE GOVERNMENT BOND MARKET PARTICIPANTS TO REPORT THEIR POSITIONS IN TREASURY SECURITIES INCLUDING POSITIONS IN THE WHENISSUED MARKET BEFORE SECURITIES ARE SOLD AND IN THE REPURCHASEAGREEMENT MARKET WHERE DEALERS FINANCE THEIR BOND INVENTORIES THE BILL WOULD REQUIRE BROKERS AND DEALERS TO KEEP TRADING RECORDS THAT COULD BE TRANSMITTED ELECTRONICALLY TO THE SEC UPON REQUEST IT ALSO WOULD REGULATE GOVERNMENT SECURITIES SALES PRACTICES PERMANENTLY EXTEND THE TREASURY'S RULEMAKING AUTHORITY OVER THE MARKET REQUIRE DEALERS TO ERECT INTERNAL CONTROL TO DETER FRAUD AND REQUIRE THE SEC TO REPORT ANNUALLY ON THE ADEQUACY OF BOND PRICE DISSEMINATION THE POSITIONREPORTING PROVISION COVERS THOSE LARGELY UNREGULATED INVESTMENT FUNDS KNOWN AS HEDGE FUNDS THE SHEER SIZE OF THE POSITIONS TAKEN BY THESE FUNDS AND THEIR UNREGULATED NATURE HAVE RAISED SERIOUS QUESTIONS REGARDING THEIR ABILITY TO MANIPULATE THE MARKET FOR GOVERNMENT SECURITIES WITHOUT DETECTION SAID THE HOUSE ENERGY AND COMMERCE COMMITTEE WHICH DRAFTED MOST OF THE BILL WHEN AUTHORITIES BEGAN LOOKING INTO THE SQUEEZE IN TREASURY NOTES IN MAY 1991 WHICH LED TO THE UNRAVELING OF THE SALOMON SCANDAL ONE HEDGE FUND REFUSED TO DIVULGE ITS POSITION IN THE NOTES TO TREASURY OFFICIALS ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER PROVISIONS ADDED TO THE BILL BY THE HOUSE BANKING COMMITTEE WOULD GIVE ALL QUALIFIED BIDDERS EQUAL ACCESS TO AUTOMATED BIDDING BY THE END OF 1995 BAR THE TREASURY FROM PROVIDING FAVORED TREATMENT TO ANY BIDDERS REQUIRE THE TREASURY TO FILE ANNUAL REPORTS ON ANY AUCTION VIOLATIONS OR SUSPECTED VIOLATIONS AND PARTIALLY OPEN TO THE PUBLIC MEETINGS OF TREASURY'S PRIVATESECTOR DEBT ADVISORY PANEL 9310060155 931006 FINANCING BUSINESS WELBILT CORP WELBILT CORP STAMFORD CONN SAID IT FILED FOR AN INITIAL PUBLIC OFFERING OF 48 MILLION SHARES AT 18 TO 20 A SHARE THE COMMERCIAL FOODSERVICE EQUIPMENT MAKER PLANS TO SELL 37 MILLION SHARES AND USE PROCEEDS TO REDEEM OR PURCHASE ABOUT 55 MILLION OF OUTSTANDING 13 3/4 NOTES AS WELL AS OTHER BORROWINGS SEVERAL SHAREHOLDERS INCLUDING FORMER OFFICERS AND DIRECTORS PLAN TO SELL 11 MILLION SHARES FOR WHICH THEY PAID AN AVERAGE OF 1137 A SHARE DONALDSON LUFKIN & JENRETTE SECURITIES CORP IS LEAD UNDERWRITER FOR THE OFFERING 9310060153 931006 BUSINESS BRIEF OLYMPIA & YORK UNIT TRANSFERS OWNERSHIP OF AN OFFICE BUILDING NEW YORK OLYMPIA & YORK DEVELOPMENTS LTD'S US SUBSIDIARY COMPLETED THE TRANSFER OF ITS MANHATTAN OFFICE TOWER AT 55 WATER ST TO THE BUILDING'S BONDHOLDERS THE NEW OWNERS ALSO REPLACED O&Y AS MANAGER OF THE 52STORY TOWER IN PART BECAUSE OF THE REALESTATE CONCERN'S WEAK FINANCIAL CONDITION THE NEW PROPERTY MANAGER IS JONES LANG WOOTTON RETIREMENT SYSTEMS OF ALABAMA A PENSION FUND IS NOW THE LARGEST OWNER OF THE PROPERTY WITH AN 88 STAKE THE BUILDING NOW DEBTFREE HAS ABOUT 60 MILLION IN CASH FOR RENOVATIONS ASBESTOS REMOVAL AND TENANT IMPROVEMENTS WILBUR ROSS A SENIOR MANAGING DIRECTOR AT ROTHSCHILD INC ADVISER TO THE BUILDING'S NEW OWNERS SAID THE NEW LANDLORDS BELIEVED O&Y MIGHT HAVE HAD A CONFLICT OF INTEREST IN MANAGING 55 WATER ST BECAUSE OF ITS OTHER DOWNTOWN NEW YORK HOLDINGS MR ROSS ALSO SAID THE NEW OWNERS BELIEVED POTENTIAL TENANTS COULD BE CONFUSED ABOUT THE BUILDING'S FINANCIAL CONDITION IF O&Y CONTINUED AS MANAGER THIS TRANSFER OF OWNERSHIP PUTS 55 WATER ST ON SOUND FINANCIAL FOOTING AND REFLECTS OUR STRONG COMMITMENT TO THIS PROPERTY AND ITS GREAT POTENTIAL SAID DAVID BRONNER CHIEF EXECUTIVE OF RETIREMENT SYSTEMS WE HAVE GREAT FAITH IN THE LONGTERM PROSPECTS OF DOWNTOWN MANHATTAN HE SAID THE TRANSFER OF THE BUILDING IS PART OF THE CONTINUING EFFORTS BY O&Y'S US SUBSIDIARY TO RESTRUCTURE MORE THAN 5 BILLION OF ITS DEBT 9310060152 931006 INTERNATIONAL NUCLEAR TEST BY BEIJING ADDS STRAIN TO ALREADY TROUBLED USCHINA TIES BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG CHINA'S UNDERGROUND DETONATION OF A NUCLEAR DEVICE ADDS TO A CHAIN OF EVENTS THAT HAVE WORSENED TIES BETWEEN THE INCREASINGLY CONFIDENT ASIAN GIANT AND THE US SEISMOLOGICAL EVIDENCE THAT BEIJING IGNORED INTERNATIONAL OBJECTIONS AND WENT AHEAD YESTERDAY WITH A NUCLEAR TEST EXPLOSION IN CHINA'S NORTHWEST DESERTS PROBABLY WILL COMPLICATE RECENT EFFORTS BY THE US RUSSIA BRITAIN AND FRANCE ALL OF WHICH HAVE SUSPENDED TESTING VOLUNTARILY TO IMPOSE A GLOBAL MORATORIUM ON SUCH TESTS BUT THE SHARPEST BLOW MAY BE TO ALREADY FRAGILE USCHINA TIES PRESIDENT CLINTON AND CHINESE PRESIDENT JIANG ZEMIN JUST LAST WEEK SCHEDULED A NOVEMBER SUMMIT IN SEATTLE TO TRY TO CALM WHAT SECRETARY OF STATE WARREN CHRISTOPHER CHARACTERIZED AS SOME ROUGH WATERS ONE OFFICIAL EVEN SPOKE OF RESTORING MILITARY TIES BETWEEN THE TWO COUNTRIES IF THE WATERS WERE CHOPPY BEFORE THOUGH NOW THEY ARE EVEN MORE TURBULENT AT THE TIME THE SUMMIT WAS ANNOUNCED THE WHITE HOUSE WARNED THAT CHINA SHOULDN'T PROCEED WITH ANY NUCLEAR TESTS BOTH WASHINGTON AND PARIS HAD THREATENED TO CONDUCT THEIR OWN TESTS IF ANY OTHER COUNTRY DID IN WASHINGTON THE WHITE HOUSE SAID IT DEEPLY REGRETS CHINA'S ACTION AND CALLED ON BEIJING TO REFRAIN FROM FURTHER NUCLEAR TESTS AND TO JOIN THE OTHER NUCLEAR POWERS IN A GLOBAL MORATORIUM PRESIDENT CLINTON DIRECTED THE ENERGY DEPARTMENT TO PREPARE FOR A POSSIBLE RESUMPTION OF US TESTING NEXT YEAR IF NATIONAL SECURITY INTERESTS SHOULD REQUIRE SUCH A STEP TO BEIJING WASHINGTON'S WARNING STRUCK A FAMILIAR SOUR CHORD THE CLINTON ADMINISTRATION REPEATEDLY HAS TAKEN A STERN SOME CHINESE OFFICIALS THINK SANCTIMONIOUS ATTITUDE TOWARD CHINA AT THE VERY TIME WHEN ITS SURGING ECONOMY IS LIFTING HUNDREDS OF MILLIONS OF CHINESE OUT OF POVERTY AND INTO A CONSUMER SOCIETY FIRST WASHINGTON SLAPPED TRADE SANCTIONS ON BEIJING FOR SELLING MISSILE COMPONENTS TO PAKISTAN THEN THE US INSISTED ON SEARCHING A CHINESE SHIP IN THE PERSIAN GULF THAT IT BELIEVED WAS CARRYING MATERIALS THAT COULD BE USED FOR CHEMICAL WEAPONS AND IN WHAT MANY ORDINARY CHINESE CONSIDERED THE GREATEST INTRUSION MEMBERS OF THE US CONGRESS URGED THE INTERNATIONAL OLYMPIC COMMITTEE TO REJECT BEIJING'S BID TO HOST THE SUMMER GAMES IN THE YEAR 2000 THAT SYDNEY AUSTRALIA WAS AWARDED THE GAMES CAUSED GREAT DISAPPOINTMENT AND NO SMALL AMOUNT OF BITTERNESS TOWARD THE US IN EACH CASE BEIJING THINKS THE US STANCES HAVE BEEN HYPOCRITICAL OR IN THE WORD OF CHINESE VICE PREMIER AND FOREIGN MINISTER QIAN QICHEN UNFAIR IN THE CASE OF NUCLEAR TESTING FOR INSTANCE CHINA REITERATED ITS COMMITMENT TO PARTICIPATE IN THE DRAFTING OF AND ABIDE BY A COMPREHENSIVE TESTBAN TREATY BEIJING WHICH IS THOUGHT TO MAINTAIN THE SMALLEST NUCLEAR ARSENAL AMONG THE WORLD'S MAJOR NUCLEARARMED NATIONS MAINTAINS THAT IT HAS CONDUCTED ONLY ABOUT 30 NUCLEAR TESTS SINCE IT EXPLODED ITS FIRST BOMB IN 1964 FAR FEWER THAN THE OTHER POWERS INDEED CHINESE OFFICIALS MAY THINK THEY HAVE TAKEN A HIGHER ROAD THAN WASHINGTON BY INSISTING THAT THE WORLD SHOULD DRAFT A BAN ON THE USE NOT MERELY THE TESTING OF SUCH WEAPONS A STATEMENT READ YESTERDAY OVER NATIONAL RADIO AND TELEVISION SAID TEST BANS THEMSELVES WERE OF LIMITED SIGNIFICANCE MOREOVER BY THE TIME WASHINGTON WAS PUTTING PUBLIC PRESSURE ON CHINA TO HALT ITS NUCLEAR TEST THE DEVICE ALREADY MAY HAVE BEEN IN THE GROUND MAKING IT MORE DANGEROUS ONE US OFFICIAL SAID TO REMOVE IT THAN TO DETONATE IT CHINA'S EMERGING RIGHTEOUSNESS MAY JUST BE SAVVY DIPLOMACY PARTICULARLY IN AN ASIA WHERE OTHER COUNTRIES NOTABLY SINGAPORE MALAYSIA AND INDONESIA ARE WEARY OF WHAT THEY PERCEIVE AS THE IMPOSITION OF WESTERNHELD VALUES BUT EVEN IF CHINA IS SAVVY IT IS ENCOURAGED IN PART BY WASHINGTON'S POSTURING TAKE THE SANCTIONS WASHINGTON IMPOSED ON CHINA FOR SELLING MISSILES TO PAKISTAN THAT SUPPOSEDLY VIOLATED THE TERMS OF THE MISSILE TECHNOLOGY CONTROL REGIME WHICH IS DESIGNED TO LIMIT THE SPREAD OF MISSILES OF A CERTAIN RANGE MR QIAN SAYS BOTH PAKISTAN AND CHINA SOUGHT TO ASSURE THE US THAT THE MISSILE SALES DIDN'T VIOLATE THE AGREEMENT A WEEK AFTER THE SANCTIONS WERE ANNOUNCED US ASSISTANT SECRETARY OF STATE WINSTON LORD SOUGHT TO DEFINE THE TRADE RESTRICTIONS AS NARROWLY AS POSSIBLE A SIGNAL SOME CHINESE OFFICIALS TOOK TO BE A RETREAT THEN THERE WAS THE CASE OF THE YINHE A CHINESE VESSEL THAT SUPPOSEDLY WAS CARRYING SUBSTANCES THAT COULD BE USED TO MAKE CHEMICAL WEAPONS US INTELLIGENCE ON THE SHIP'S CARGO WAS FLAWED WHEN WASHINGTON TRIED TO MAKE AN EXAMPLE OF CHINA BEIJING DEFTLY TURNED THE TABLES AND EXPOSED THE FALSITY OF THE US CLAIMS BY ALLOWING INTERNATIONAL INSPECTORS ABOARD THE SHIP WHETHER OR NOT THE SHIP OR CHINA HAD BEEN TRANSPORTING CHEMICALWEAPON COMPONENTS TO THE PERSIAN GULF WAS A LOST ISSUE THE CLINTON ADMINISTRATION NEVER LOOKED PARTICULARLY FRIENDLY TO CHINA ON THE CAMPAIGN TRAIL MR CLINTON HIMSELF ACCUSED HIS PREDECESSOR GEORGE BUSH OF CODDLING THE GOVERNMENT THAT BRUTALLY CRUSHED DEMOCRACY DEMONSTRATORS IN JUNE 1989 BUT MR CLINTON WHILE TALKING TOUGH WITH CHINA NEVERTHELESS EXTENDED CHINA'S MOSTFAVOREDNATION TRADING STATUS FOR A YEAR FROM JUNE WINNING PRAISE FROM SOME ANALYSTS AND FROM US BUSINESS BY PROPOSING TO MEET WITH CHINA'S PRESIDENT JIANG IN SEATTLE AND TALKING ABOUT RESTORING MILITARY TIES MR CLINTON MAY BE ATTEMPTING TO SUSTAIN A TWOLEVEL APPROACH BOTH CONFRONTING CHINA AND KEEPING CHANNELS OPEN BUT THE RECENT US TOUGHNESS WITH CHINA AND CHINA'S INCREASINGLY OFFENDED RESPONSES MAY MAKE THAT DIFFICULT 9310060151 931006 CORRECTIONS & AMPLIFICATIONS THE BOND BUYER MUNICIPAL BOND INDEX CLOSED MONDAY AT 105 7/32 THE INDEX CLOSE WAS INCORRECTLY REPORTED AS 107 7/32 IN YESTERDAY'S EDITION MALLON OIL CO OF DENVER INCREASED ITS OIL RESERVES TO 14 MILLION BARRELS OF OIL FROM 337000 BARRELS WITH ITS ACQUISITION OF PROPERTIES FROM PENNZOIL CO IN AN ARTICLE YESTERDAY THE AMOUNTS WERE OVERSTATED ALSO MALLON AGREED TO DELIVER 215000 BARRELS OF OIL TO A UNIT OF ENRON CORP NOT 215 MILLION BARRELS AS REPORTED 9310060150 931006 WHO'S NEWS AMERICAN TELEPHONE & TELEGRAPH CO AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK NCR CORP THE INFORMATION SYSTEMS UNIT OF THIS TELECOMMUNICATIONS COMPANY NAMED LOLA SIGMON VICE PRESIDENT OF PUBLIC RELATIONS AND ASSOCIATE INFORMATION MS SIGMON 49 YEARS OLD HAD BEEN VICE PRESIDENT OF INFORMATION PRODUCTS SHE SUCCEEDS GIUSEPPE BASSANI 56 WHO WILL TAKE EARLY RETIREMENT BUT CONTINUE AS A CONS MS SIGMON WILL CONTINUE TO HEAD THE INFORMATION PRODUCTS DIVISION AND ALSO WAS NAMED NCR VALUES OFFICER A NEW POSITION WARREN CASTRAY 58 VICE PRESIDENT PACIFIC GROUP WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT ASIA EFFECTIVE JAN 3 9310060149 931006 GM'S SATURN PRODUCTION EXPANDS TO SEVEN DAYS DETROIT GENERAL MOTORS CORP'S SATURN DIVISION HAS EXPANDED PRODUCTION TO SEVEN DAYS A WEEK AS PART OF A PUSH BY THE DIVISION TO BREAK EVEN THIS YEAR THE MAKER OF SMALL CARS BEGAN SUNDAY PRODUCTION LAST WEEKEND AND ALSO EXTENDED WEEKDAY OPERATION BY 30 MINUTES PER SHIFT THE MOVES WILL TEMPORARILY INCREASE ITS ANNUAL PRODUCTION RATE TO 327700 CARS A YEAR FROM 320000 IT'S GOING TO UP OUR VOLUME AND GIVE US A CHANCE TO BREAK EVEN A UNITED AUTO WORKERS SPOKESMAN SAID SATURN HAS LOST MONEY EACH YEAR SINCE 1990 WHEN THE DIVISION WAS LAUNCHED IT IS UNDER INTENSE PRESSURE TO MAKE A PROFIT AND SAID IT EXPECTS AT LEAST TO BREAK EVEN THIS YEAR SATURN PRODUCTION HAD BEEN OPERATING 20 HOURS A DAY SIX DAYS A WEEK IN ORDER TO BOOST PRODUCTIVITY IT EXPANDED TO 21HOUR DAYS DURING THE WEEK AND ADDED A 10HOUR SUNDAY SHIFT UNDER AN INNOVATIVE LABOR AGREEMENT SATURN EMPLOYEES WORK FOUR DAYS A WEEK IN 10HOUR SHIFTS WORKERS WILL BE PAID TIMEANDAHALF FOR EACH SHIFT'S ADDITIONAL HALFHOUR OF WORK AND DOUBLETIME FOR THE SUNDAY SHIFT SATURN SAID IT HOPES TO END SUNDAY WORK IN A FEW MONTHS 9310060148 931006 TREASURY PLANS TO RAISE 188 BILLION IN OFFERING WASHINGTON THE TREASURY PLANS TO RAISE 188 BILLION IN NEW CASH WITH THE SALE TUESDAY OF ABOUT 256 BILLION IN SHORTTERM BILLS TO REDEEM 2371 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING JAN 13 AND APRIL 14 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794H49 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794J96 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT 9310060147 931006 COMMODITIES COFFEE FUTURES PLUNGE AGAIN AS TRADERS DOUBT CARTEL PLAN TO CURB EXPORTS WILL BE SUCCESSFUL BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COFFEE FUTURES PRICES PLUNGED FOR THE EIGHTH CONSECUTIVE DAY REFLECTING PESSIMISM AMONG TRADERS THAT AN AFRICAN AND LATIN AMERICAN PLAN TO LIMIT COFFEE EXPORTS WILL BE SUCCESSFUL AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE COFFEE FOR DECEMBER DELIVERY FELL 145 CENTS TO 7190 CENTS A POUND SINCE SEPT 23 WHEN THE ACTIVELY TRADED DECEMBER CONTRACT SETTLED AT 8165 CENTS A POUND THE CONTRACT PRICE HAS DECLINED NEARLY 12 DURING THE SUMMER COFFEE HAD POSTED IMPRESSIVE PRICE GAINS BECAUSE OF EFFORTS BY ABOUT TWO DOZEN OF THE WORLD'S BIGGEST COFFEEGROWING COUNTRIES TO CURTAIL THEIR EXPORTS AND THEREBY RAISE PRICES THE INTERAFRICAN COFFEE ORGANIZATION AND A LESS FORMAL ORGANIZATION REPRESENTING LATIN AMERICAN COFFEE PRODUCERS HAVE FORMED A CARTEL AND AGREED UPON A PLAN TO WITHHOLD 20 OF THEIR PLANNED EXPORTS IF PRICES ARE BELOW CERTAIN PRESPECIFIED LEVELS THE PLAN TOOK EFFECT FRIDAY STILL THERE IS CONTINUED SKEPTICISM SURROUNDING THE COFFEERETENTION SCHEME SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THE OVERWHELMING VIEW HAS BECOME THAT THE RETENTION PLAN WILL NOT BE SUCCESSFUL THAT SOME OF THE COUNTRIES ARE LOOKING FOR ANY WAY TO CIRCUMVENT THE AGREEMENT AS A RESULT COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTOR MONEY AND OTHER SPECULATORS HAVE BEEN BIG SELLERS AT THE NEW YORK COFFEE EXCHANGE RECENTLY SUSTAINED PRICE DECLINES IN ANY COMMODITY TEND TO FEED UPON THEMSELVES PROMPTING SELLING OF FUTURES CONTRACTS BY COMMODITY FUNDS WHEN PRICES BREAK THROUGH LEVELS THEY REGARD AS SIGNIFICANT YET OTHER SOCALLED FUNDAMENTAL FACTORS AFFECTING THE SUPPLY OF AND DEMAND FOR COFFEE SEEM TO INDICATE THAT PRICES WON'T FALL MUCH FURTHER ANALYSTS SAID THE DOWNWARD MOVE MAY BE SHORTLIVED SAID SAUNDRA KAUL COFFEE ANALYST FOR SMITH BARNEY SHEARSON WE'RE INTO THE PEAK DEMAND PERIOD WHICH RUNS FROM OCTOBER TO MARCH COFFEE IS A COLDWEATHER BEVERAGE WHEN TEMPERATURES ARE COOL PEOPLE TEND TO CONSUME MORE CERTIFIED COFFEE STOCKS THE QUANTITIES OF COFFEE IN WAREHOUSES APPROVED FOR DELIVERY AGAINST THE NEW YORK COFFEE EXCHANGE'S FUTURES CONTRACTS HAVE BEEN IN A SUSTAINED DOWN TREND FOR THE PAST FEW WEEKS MS KAUL SAID FROM A SUMMER HIGH OF 5780000 BAGS OF COFFEE THESE STOCKS HAVE FALLEN NEARLY 7 TO 5380000 BAGS LAST WEEK THEY DECLINED BY MORE THAN 381000 BAGS DECLINING CERTIFIED STOCKS ARE AN INDICATION THAT COFFEE ROASTERS HAVE BEEN BUYING COFFEE TO PREPARE FOR THE INCREASED FALL DEMAND MS KAUL SAID SHE THINKS COFFEE FUTURES PRICES WILL HALT THEIR DECLINE SOON AND LIKELY RETURN TO THE 80CENTAPOUND LEVEL WITHIN THE NEXT FOUR MONTHS IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES PRICES GENERALLY WERE LOWER IN A TRENDLESS OIL MARKET TRADING RALLIES FLARED BRIEFLY DURING THE DAY BUT THEN FADED CRUDE OIL FOR NOVEMBER DELIVERY SETTLED THREE CENTS A BARREL LOWER AT 1839 ON THE NEW YORK MERCANTILE EXCHANGE NEWS REPORTS OF HIGH SEPTEMBER CRUDE OIL PRODUCTION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES HAD LITTLE IMPACT STILL THERE WAS SOME CONCERN AMONG TRADERS THAT THE LATEST WEEKLY INDUSTRY REPORT WOULD SHOW BIG INCREASES IN US OIL INVENTORIES BUT THE REPORT ISSUED BY THE AMERICAN PETROLEUM INSTITUTE AFTER THE CLOSE OF REGULAR FUTURES TRADING GENERALLY WAS CONSIDERED TO BE BULLISH IT SHOWED AN INCREASE OF 14 MILLION BARRELS IN CRUDE OIL INVENTORIES LAST WEEK ABOUT IN LINE WITH EXPECTATIONS INVENTORIES OF DISTILLATE FUELS WHICH INCLUDE HOME HEATING OIL FELL NEARLY TWO MILLION BARRELS IN A BIGGER DRAWDOWN THAN EXPECTED GASOLINE INVENTORIES SHOWED A MODEST DECLINE LIVESTOCK AND MEATS PORKBELLY FUTURES PRICES ROSE SHARPLY ON CONTINUING STRENGTH IN THE CASH MARKET AND INDICATIONS THAT SUPPLIES ARE ON THE DECLINE AT THE CHICAGO MERCANTILE EXCHANGE PORK BELLIES FOR FEBRUARY DELIVERY ROSE 147 CENTS TO 5767 CENTS A POUND A RECENT US AGRICULTURE DEPARTMENT HOG AND PIG REPORT CALLED FOR FASTPACED MARKETING OF EXISTING PORKBELLY STOCKS WHICH COULD RESULT IN A DECLINE IN PORKBELLY SUPPLIES BY 5 TO 6 BY NEXT SUMMER THIS SHORTAGE OF SUPPLY IS LIKELY TO CONTINUE TO PUSH PORKBELLY FUTURES PRICES HIGHER OVER THE NEXT FEW WEEKS SAID DALE BENSON SENIOR LIVESTOCK ANALYST FOR DEAN WITTER REYNOLDS RIGHT NOW I THINK THE FEBRUARY BELLIES WILL TRADE INTO THE 60CENT RANGE POSSIBLY AS HIGH AS 62 OR 65 CENTS A POUND MR BENSON SAID PORK BELLIES ARE UNCURED BACON 9310060146 931006 MANAGEMENT FIRMS FORCE JOB SEEKERS TO JUMP THROUGH HOOPS BY JULIE AMPARANO LOPEZ STAFF REPORTER OF THE WALL STREET JOURNAL FACING A JOB MARKET WHERE THEY CAN PICK AND CHOOSE COMPANIES ARE USING NEW AND OFTEN ABRASIVE TACTICS TO SCREEN EXECUTIVE CANDIDATES AMERICAN TELEPHONE & TELEGRAPH CO REQUIRES SOME ASPIRANTS TO DELIVER PRESENTATIONS OR LEAD MEETINGS MANAGERIAL APPLICANTS AT MASSACHUSETTS MUTUAL LIFE INSURANCE CO MUST PRETEND TO BE THE BOSS FOR A DAY AMONG OTHER THINGS LIKE A GROWING NUMBER OF OTHER COMPANIES RJR NABISCO HOLDINGS CORP GIVES SOME WOULDBE BOSSES PSYCHOLOGICAL TESTS TO ASSESS THEIR FIT WITH ITS CORPORATE CULTURE US BUSINESSES CAN MAKE THESE TOUGH DEMANDS BECAUSE SO MANY WHITECOLLAR WORKERS ARE UNEMPLOYED AND THOUSANDS OF OTHERS LONG TO CHANGE JOBS IN THE PAST FIVE YEARS A RECORD 14 MILLION EXECUTIVES MANAGERS AND ADMINISTRATIVE PROFESSIONALS HAVE LOST THEIR JOBS ACCORDING TO THE BUREAU OF LABOR STATISTICS BY CONTRAST 782000 OF THEM LOST THEIR JOBS BETWEEN 1981 AND 1986 BETSY JAFFE A CAREER COUNSELOR IN NEW YORK NOW SEES MANY EXECUTIVES CONFRONTING EXTRA HURDLES DURING THE JOBSEARCH PROCESS A CLEVELAND INSURANCE COMPANY DEMANDED THAT AN EXECUTIVE ANSWER 10 QUESTIONS ABOUT THE LATEST GOVERNMENT HEALTHCARE REGULATIONS BEFORE IT WOULD CONSIDER HIM FOR A 160000 POST AS CHIEF FINANCIAL OFFICER THE EXECUTIVE ANSWERED THE QUESTIONS RIGHT BUT STILL DIDN'T GET THE JOB A FEW YEARS AGO NO ONE WOULD HAVE DARED ASK AN EXECUTIVE TO TAKE A QUIZ DR JAFFE SAYS BUT WITH THEIR STAFFS SO LEAN COMPANIES ARE INCREASINGLY SEEKING TALENT FROM OUTSIDE THEIR RANKS AND IN THE CURRENT COMPETITIVE ENVIRONMENT BUSINESSES SAY THEY CAN'T AFFORD TO HIRE A POSSIBLE LOSER COMPANIES KNOW THEY CAN PUT UP WHATEVER HOOPS THEY WANT AND PEOPLE ARE GOING TO JUMP THROUGH THEM SAYS MARILYN MOATS KENNEDY A CAREER CONSULTANT AND NEWSLETTER PUBLISHER IN WILMETTE ILL IF A CANDIDATE REFUSES THE COMPANY JUST ROLLS OVER THEM AND GOES ON TO THE NEXT PERSON RICHARD S HARPER LEARNED THAT LESSON THE HARD WAY THIS YEAR A MAJOR EAST COAST CONSUMERPRODUCTS COMPANY APPROACHED THE 48YEAROLD SAN FRANCISCO EXECUTIVE ABOUT A CONTROLLER'S POSITION THAT PAID ABOUT 120000 A YEAR HE FLEW OUT FOR TWO DAYS OF INTERVIEWS BUT MR HARPER BALKED WHEN COMPANY OFFICIALS ASKED HIM TO TAKE A PSYCHOLOGICAL TEST AND PREPARE A TWOPAGE BUSINESS REPORT I TOLD THEM COME ON I'VE BEEN IN MANAGEMENT 10 YEARS MY CREDENTIALS SPEAK FOR THEMSELVES' RECALLS MR HARPER WHO WORKS FOR A BIG FINANCIALSERVICES COMPANY I THOUGHT I HAD IT IN THE BAG SINCE THEY CAME TO ME THEY FOUND SOMEONE WHO COMPLIED WITH THE DEMANDS THE PLETHORA OF QUALIFIED CANDIDATES IS REVIVING DEMAND FOR PSYCHOLOGICAL SCREENING PSYCHOLOGICAL TESTING WAS BECOMING ALMOST PASSE EXPLAINS CHRISTOPHER C POLSEN A MINNEAPOLIS EXECUTIVE RECRUITER NOW WE'RE SEEING COMPANIES USE IT MORE TO ENSURE CANDIDATES FIT WITH THEIR CULTURE AT PERSONNEL DECISIONS INC A NEW YORK HUMANRESOURCES CONSULTING CONCERN THE NUMBER OF CLIENT BUSINESSES SEEKING ASSESSMENTS OF EXECUTIVE JOB CANDIDATES HAS MORE THAN TRIPLED IN THE PAST YEAR SAYS ELAINE J EISENMAN VICE PRESIDENT THE FEAR OF EXECUTIVESUITE TURMOIL BECAUSE OF A MANAGEMENT MISFIT IS ALSO PROMPTING MORE COMPANIES TO EXAMINE OUTSIDE CONTENDERS CLOSELY MASSACHUSETTS MUTUAL LIFE IN SPRINGFIELD MASS IS PUTTING FINALISTS FOR A SALESANDMARKETING VICE PRESIDENCY THROUGH TWO DAYS OF RIGOROUS SCREENING CONDUCTED BY PERSONNEL DECISIONS JEFFREY L MCEWEN A MASSACHUSETTS MUTUAL VICE PRESIDENT SAYS THE PROCESS HELPS THE COMPANY MAKE SMARTER HIRES AND AVOID CULTURE CLASHES SO FAR SIX FINALISTS HAVE EACH UNDERGONE NEARLY THREE HOURS OF PSYCHOLOGICAL EXAMS PROCESSED AN INBASKET FILLED WITH BUSINESS MEMOS REPORTS AND OTHER DOCUMENTS DURING A TWOHOUR PERIOD AND ACTED OUT SEVERAL CORPORATE ROLES FOR INSTANCE EACH FINALIST MUST PRETEND TO BE A BOSS WHO IS HAVING PROBLEMS WITH A CONTENTIOUS SUBORDINATE MASSACHUSETTS MUTUAL BEGAN USING SUCH PREEMPLOYMENT ASSESSMENTS THREE YEARS AGO WHEN IT FIRST TURNED TO OUTSIDE MANAGERIAL TALENT FOR A NEW PERSPECTIVE BY THE END OF THE SCREENING WE PRETTY MUCH KNOW WHETHER THE PERSON IS GOING TO WORK OUT MR MCEWEN NOTES SO FAR MR MCEWEN ADDS EVERY NEW SENIOR MANAGER WHO UNDERWENT A PREEMPLOYMENT ASSESSMENT HAS WORKED OUT AT&T WHICH HAS ALSO BEGUN A BIG PUSH TO RECRUIT OUTSIDERS BEGAN PUTTING SOME SENIORLEVEL EXECUTIVE CANDIDATES THROUGH AN EXPANDED ASSESSMENT PROCESS IN 1991 APPLICANTS MUST GIVE BRIEF PRESENTATIONS TO AN ASSESSMENT COUNSELOR OR PRETEND TO LEAD A MOCK MEETING THE SIMULATIONS HELP TO DETERMINE A CANDIDATE'S CULTURAL BACKGROUND TEAMING CAPABILITY AND LEADERSHIP SKILLS EXPLAINS HAL BURLINGAME AN AT&T SENIOR VICE PRESIDENT A FEW CONCERNS TRY TO MEASURE WOULDBE EXECUTIVES BY PITTING THEM AGAINST ONE ANOTHER LAST YEAR AN EXECUTIVE RECRUITER INVITED JOSEPH EDWARDS A FORMER SENIOR EXECUTIVE AT A MAJOR CORPORATION TO INTERVIEW FOR A 300000AYEAR JOB AS CHIEF EXECUTIVE OFFICER OF A CALIFORNIA STARTUP AEROSPACE MANUFACTURER TO HIS DISMAY HE DISCOVERED THAT 50 OTHER CANDIDATES WERE ASKED TO SHOW UP THE SAME DAY WHEN MR EDWARDS COMPLAINED ABOUT UNPROFESSIONAL TREATMENT HE SAYS THE COMPANY ADVANCED HIM TO THE NEXT ROUND OF INTERVIEWS BECAUSE THEY LIKED HIS OUTSPOKEN MANNER THE 48YEAROLD CALIFORNIAN SAYS HE STILL DIDN'T LAND THE HIGHLY PAID POST YET DALLAS PSYCHOLOGIST FRED FISHBACH SWEARS BY SUCH TACTICS A CASE IN POINT HE RECENTLY HANDLED THE SIX CONTENDERS FOR AN 80000AYEAR DIVISION PRESIDENCY AT A FORTUNE 500 MANUFACTURER IN ATLANTA THE PSYCHOLOGIST CROWDED THE MEN INTO A HOTEL CONFERENCE ROOM IN ATLANTA AND DISPENSED INFORMATION ABOUT SLUGGISH SALES FOR A FICTITIOUS PRODUCT THEN HE CRANKED UP THE SQUEEZE THE JOB SEEKERS SPENT THE DAY BOUNCING FROM ONE MOCK OFFICE TO ANOTHER DEVELOPING REMEDIES AMONG THEMSELVES FOR THE SALES SLUMP AND RESPONDING TO DEMANDING COMPANY OFFICIALS THROUGHOUT THE SIMULATION MR FISHBACH TOOK NOTES ABOUT THE CANDIDATES' LEADERSHIP PROBLEMSOLVING AND COMMUNICATIONS SKILLS PEOPLE CAN FAKE AN INTERVIEW EXPLAINS MR FISHBACH WHO RUNS APPLIED PSYCHOMETRICS INC A COMPANY THAT SCRUTINIZES EXECUTIVELEVEL APPLICANTS FOR CORPORATIONS BUT THEY CAN'T BLUFF THEIR WAY THROUGH THIS AT THE END OF HIS DAYLONG OBSTACLE COURSE MR FISHBACH SAYS HE REALIZED THAT THE TOP CONTENDER WASN'T SO GREAT AFTER ALL INSTEAD A FAIRLY AVERAGE FINALIST DEVELOPED THE MOST INNOVATIVE SOLUTIONS BY RECOGNIZING NEW DEMOGRAPHIC PATTERNS AND POSITIONING PRODUCTS TO CAPITALIZE ON THOSE TRENDS HE ULTIMATELY GOT THE JOB THE PSYCHOLOGIST RECALLS WITH ALL THE EXTRA HOOP JUMPING NOWADAYS MANY COMPANIES DON'T TALK SERIOUSLY BEFORE EIGHT TO 10 MEETINGS SAYS FREDERICK W WACKERLE AN EXECUTIVE RECRUITER IN CHICAGO JANET I MORELAND SAYS SHE HAD TO ENDURE 17 INTERVIEWS BEFORE A BOSTON HIGHTECHNOLOGY FIRM OFFERED HER A SENIOR VICE PRESIDENT'S SLOT LAST YEAR WHICH SHE ACCEPTED IN ADDITION TO A PSYCHOLOGICAL TEST THE FORMER TELECOMMUNICATIONS MANAGER WAS INTERROGATED BY CUSTOMERS VENDORS AND A FEW CONSULTANTS ABOUT HER BUSINESS PHILOSOPHY AND STYLE SAYS THE 42YEAROLD MS MORELAND I DIDN'T THINK I HAD TO PROVE MYSELF ALL OVER AGAIN AT THIS POINT IN MY CAREER 9310060145 931006 ARIZONA PS TO CALL BONDS PHOENIX ARIZONA PUBLIC SERVICE CO SAID IT WILL CALL FOR REDEMPTION NOV 4 TWO SERIES OF FIRST MORTGAGE BONDS THE UTILITY WILL REDEEM ALL 60 MILLION OF ITS 745 SERIES DUE MARCH 15 2002 AT 10206 OF PRINCIPAL PLUS ACCRUED INTEREST THESE BONDS WERE ISSUED IN 1972 IT ALSO WILL REDEEM ALL 25 MILLION OF ITS 625 SERIES DUE SEPT 1 1997 AT 10045 PLUS ACCRUED INTEREST THESE WERE ISSUED IN 1967 ARIZONA PUBLIC SERVICE IS A UNIT OF PINNACLE WEST CAPITAL CORP 9310060144 931006 WHO'S NEWS GEOTEK INDUSTRIES INC GEOTEK INDUSTRIES INC MONTVALE NJ THIS TELECOMMUNICATIONS PRODUCT CONCERN NAMED MICHAEL S HIRSCH VICE PRESIDENT OF EXTERNAL AFFAIRS RESPONSIBLE FOR CORPORATE POLICY INVOLVING GOVERNMENT AFFAIRS TRADE ASSOCIATIONS AND STANDARDS BODIES MR HIRSCH 51 YEARS OLD IS A FORMER VICE PRESIDENT OF TECHNOLOGY FOR THE CELLULAR TELECOMMUNICATIONS INDUSTRY ASSOCIATION 9310060143 931006 PACIFIC PHYSICIAN SERVICES INC REDLANDS CALIF PACIFIC PHYSICIAN SERVICES INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO PURCHASE RIVERSIDE MEDICAL CLINIC FOR 23 MILLION IN CASH NOTES AND STOCK UNDER TERMS OF THE AGREEMENT THE MANAGEDCARE CONCERN ALSO WILL ASSUME 9 MILLION IN LIABILITIES THE CLINIC BASED IN RIVERSIDE CALIF HAD REVENUE OF 50 MILLION LAST YEAR AND IS OWNED BY A PARTNERSHIP OF 64 PHYSICIANS PACIFIC PHYSICIAN SERVICES SAID IT EXPECTS THE TRANSACTION TO CLOSE BY THE END OF THE MONTH SUBJECT TO APPROVALS AND CONDITIONS 9310060142 931006 JACOBS ENGINEERING'S CONTRACT PASADENA CALIF JACOBS ENGINEERING GROUP INC SAID IT WON A 91 MILLION CONTRACT FROM THE US DEPARTMENT OF ENERGY TO PROVIDE TECHNICAL SUPPORT SERVICES FOR THE DEPARTMENT'S ENVIRONMENTAL RESTORATION PROGRAM AT OAK RIDGE TENN THE THREEYEAR CONTRACT WHICH HAS A TWOYEAR OPTION WILL PROVIDE FEASIBILITY STUDIES AS PART OF A PROGRAM TO CLEAN UP WASTES INCLUDING NUCLEAR WASTE AT OAK RIDGE AND SEVERAL OTHER SITES JACOBS IS AN ENGINEERING DESIGN ENVIRONMENTAL AND HAZARDOUS WASTE MANAGEMENT AND CONSTRUCTION FIRM 9310060141 931006 TARGET THERAPEUTICS SEES CHARGE FREMONT CALIF TARGET THERAPEUTICS INC SAID CHANGES IN ITS EXPERIMENTAL MEDICAL DEVICE FOR TREATING HIGHRISK BRAIN ANEURYSMS WILL RESULT IN A CHARGE OF AS MUCH AS 2 MILLION IN ITS FISCAL SECOND QUARTER ENDED SEPT 30 TARGET SAID THE DEVICE KNOWN AS THE GUGLIELMI DETACHABLE COIL HAS BEEN FOUND IN CLINICAL TRIALS TO CREATE SMALL METALLIC PARTICLES DURING REMOVAL FROM SOME PATIENTS THE COMPANY SAID THE PARTICLES MAY CONTRIBUTE TO STROKES IN CERTAIN PATIENTS 9310060140 931006 ENTERGY UNIT'S BOND BUYBACK NEW ORLEANS ENTERGY CORP'S ARKANSAS POWER & LIGHT UNIT SAID IT IS OFFERING TO BUY BACK THROUGH GOLDMAN SACHS & CO ALL OF ITS 1536 MILLION OF OUTSTANDING 10375 FIRST MORTGAGE BONDS DUE 2020 THE UTILITY SAID THE PURCHASE PRICE FOR A BOND WILL BE DETERMINED THROUGH A FORMULA USING THE US TREASURY'S 3875 NOTES DUE SEPT 30 1995 IN ADDITION ARKANSAS POWER & LIGHT WILL PAY ACCRUED INTEREST ON SUCH BONDS UP TO BUT NOT INCLUDING THE DATE OF SETTLEMENT 9310060139 931006 GARTNER GROUP'S INITIAL OFFERING STAMFORD CONN THE INITIAL PUBLIC OFFERING OF GARTNER GROUP INC ROSE TO A MODEST PREMIUM ON ITS FIRST DAY OF TRADING GARTNER GROUP SHARES WHICH REACHED THE MARKET AT 22 ROSE TO A HIGH OF 2625 BEFORE CLOSING AT 2575 A SHARE IN NATIONAL OVERTHECOUNTER TRADING VOLUME WAS MORE THAN THREE MILLION SHARES GARTNER A COMPUTER INDUSTRY RESEARCH AND ANALYSIS CONCERN SOLD 23 MILLION SHARES WHILE A SHAREHOLDER SOLD 360000 SHARES UNDERWRITERS LED BY MORGAN STANLEY & CO HAVE AN OVERALLOTMENT ALLOCATION OF 399000 SHARES 9310060138 931006 LABOR SECRETARY TELLS UNION DELEGATES CLINTON AGENDA DUPLICATES THEIR GOALS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO LABOR SECRETARY ROBERT REICH IN A SPEECH LIKELY TO UNSETTLE CORPORATE AMERICA TOLD THE AFLCIO MEETING HERE THAT THE CLINTON ADMINISTRATION'S AGENDA IS EXACTLY THE SAME AS THE LABOR FEDERATION'S MR REICH SET THE TONE BY CALLING THE ENTHUSIASTIC CONVENTION DELEGATES BROTHERS AND SISTERS FOR TOO MANY YEARS HE SAID YOU HAVE NOT HAD A LABOR DEPARTMENT IN WASHINGTON YOU HAVE HAD AN ANTILABOR DEPARTMENT BUT NOW HE SAID THE AGENCY WANTS TO STEP UP ENFORCEMENT OF SAFETY LAWS AS WELL AS THOSE DEALING WITH WAGES CHILD LABOR AND LABOR STANDARDS UNION OFFICIALS LAUDED MR REICH'S REMARKS WE ARE ON THE SAME WAVELENGTH SAID GERALD MCENTEE PRESIDENT OF THE AMERICAN FEDERATION OF STATE COUNTY AND MUNICIPAL EMPLOYEES HE TALKED ABOUT ALL THE THINGS WE'RE TALKING ABOUT SAID ARTHUR COIA OF THE LABORERS' INTERNATIONAL UNION OFFICIALS ACKNOWLEDGE THAT THE SPEECH WAS EXPRESSLY AIMED AT SHORING UP UNION SUPPORT FOR THE ADMINISTRATION LABOR OFFICIALS HAVEN'T ALWAYS BEEN CERTAIN OF MR REICH'S ALLEGIANCE SEVERAL UNION OFFICIALS IN RECENT MONTHS HAVE GRUMBLED THAT HIS STRONG BACKING OF LABORMANAGEMENT TEAMS WOULD ENCOURAGE COMPANIES TO CREATE ALTERNATIVES TO LABOR UNIONS THEY ALSO QUESTIONED THE CLINTON ADMINISTRATION'S COMMITMENT TO UNIONBACKED LEGISLATION THAT WOULD BAN THE PERMANENT REPLACEMENT OF STRIKING WORKERS PRESIDENT CLINTON ADDED TO THAT WORRY MONDAY WHEN HE DIDN'T MENTION THE STRIKER BILL IN HIS SPEECH TO THE CONVENTION MR REICH SAID THE PRESIDENT'S OMISSION WAS JUST A RESULT OF MR CLINTON NOT READING A SECTION OF HIS PREPARED SPEECH MR REICH SAID THE ADMINISTRATION IS MOVING TO OVERHAUL THE NATIONAL LABOR RELATIONS BOARD WHICH DECIDES MANY ISSUES CRUCIAL TO UNIONS AND EMPLOYERS TO FILL THE BOARD'S THREE OPEN SEATS WE ARE GOING TO PUT PEOPLE IN THERE WHO BELIEVE IN THE RIGHT TO COLLECTIVE BARGAINING HE SAID UNION OFFICIALS HAVE LONG COMPLAINED THAT THE NLRB HAS SHIFTED TOO FAR TOWARD FAVORING MANAGEMENT IN ADDITION THE BOARD HAS AT TIMES LET DECISIONS LANGUISH FOR SEVERAL YEARS BEFORE THEY ARE RESOLVED THAT CAN BE A LONG TIME FOR A WORKER WHO HAS BEEN ILLEGALLY FIRED FOR UNION ACTIVITIES LABOR LEADERS ARGUE 9310060137 931006 INTERNATIONAL ITOCHU STAKE IN MILA SCHON TOKYO JAPAN'S ITOCHU CORP ALONG WITH ANOTHER JAPANESE COMPANY GAINED CONTROL OF MILA SCHON SPA AN ITALIAN FASHION DESIGN COMPANY ITOCHU'S MILANBASED AFFILIATE EQUALLY OWNED WITH JAPANESE CLOTHING IMPORTER CORONET CO RECENTLY BOUGHT NEARLY 60 OF MILA SCHON'S SHARES OUTSTANDING ITOCHU SAID THE MOVE FOLLOWED SEPARATE PURCHASES IN 1988 OF 20 OF MILA SCHON'S SHARES BY BOTH JAPANESE COMPANIES ITOCHU ONE OF JAPAN'S SIX BIG GENERAL TRADING HOUSES DECLINED TO DISCLOSE THE PRICE PAID 9310060136 931006 WHO'S NEWS DYNAGEN INC DYNAGEN INC CAMBRIDGE MASS MARK SKALETSKY WAS ELECTED A DIRECTOR OF THIS BIOTECHNOLOGY AND PHARMACEUTICALS FIRM INCREASING THE BOARD SIZE TO SIX MR SKALETSKY 44 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OF GELTEX PHARMACEUTICALS INC A BIOTECHNOLOGY AND PHARMACEUTICAL FIRM BASED IN LEXINGTON MASS 9310060134 931006 INTERNATIONAL JAPAN APPEARS FINALLY READY TO LOWER INCOME TAX RATES TO STIMULATE ECONOMY BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE JAPANESE GOVERNMENT SEEMS LIKELY TO BOW TO DOMESTIC AND INTERNATIONAL PRESSURE AND CUT INCOME TAXES THE QUESTION IS JUST HOW MUCH THAT WOULD STIMULATE THE SLUGGISH ECONOMY A TAX CUT WOULD BE THE LATEST IN A SERIES OF GOVERNMENT EFFORTS TO SPUR RECOVERY JAPANESE INCOME TAXES GENERALLY ARE HIGH THE TOP RATE OF 65 HITS INDIVIDUALS WITH INCOMES OVER 20 MILLION YEN ABOUT 189000 BY COMPARISON THE TOP US FEDERAL INDIVIDUAL RATE IS 396 FOR TAXABLE INCOME OVER 250000 JAPAN'S STATE AND LOCAL TAXES CAN ADD AN ADDITIONAL 15 AND MOST PURCHASES INCLUDE A 3 CONSUMPTION OR SALES TAX THE GOVERNMENT HAS TRIED ALMOST EVERYTHING ELSE IN ITS MACROECONOMIC ARSENAL THE BANK OF JAPAN ALREADY HAS EASED CREDIT WITH ITS BENCHMARK DISCOUNT RATE AT A POSTWAR LOW OF 1 3/4 THE GOVERNMENT ALSO HAS ANNOUNCED DEREGULATORY MEASURES AND PUBLIC WORKS SPENDING VALUED AT ABOUT 30 TRILLION YEN BOTH EFFORTS HAVE SO FAR PROVED UNSUCCESSFUL IN STOKING THE NATION'S ECONOMY SO THERE MAY BE LITTLE CHOICE BUT TO CUT TAXES WITHOUT GROWTH IN CONSUMERS' DISPOSABLE INCOME THERE'S NO RECOVERY IN THE FORESEEABLE FUTURE SAYS SUSUMU KATO CHIEF ECONOMIST AT CS FIRST BOSTON JAPAN LTD ADDITIONAL RATE CUTS OR GOVERNMENT SPENDING WON'T INCREASE DEMAND HE SAYS IT'S WASTING MONEY MR KATO EXPECTS THE GOVERNMENT TO PROPOSE AN INCOME TAX CUT TOTALING ABOUT SIX TRILLION YEN SLIGHTLY UNDER 10 OF THE 61 TRILLION YEN IN JAPAN'S TOTAL TAX REVENUE LAST YEAR SOME BUSINESS LEADERS HAVE CALLED FOR A CUT OF 10 TRILLION YEN BUT THIS IS DEEMED UNLIKELY THERE'S A CASE FOR A 10TRILLIONYEN CUT WITH THE CURRENT BUSINESS TRENDS BUT THE GOVERNMENT CAN'T DECIDE ON SOMETHING OF THAT SIZE BECAUSE OF INTERNAL RESISTANCE TO TAX CUTS SAYS SOICHI ENKYO SENIOR ECONOMIST AT BANK OF TOKYO LTD RESISTANCE COMES MOSTLY FROM JAPAN'S FINANCIAL BUREAUCRATS WHO ARE STILL SPOOKED BY THE COUNTRY'S PAST DEFICITS THEY OPPOSE PUTTING JAPAN INTO THE RED WITH A TAX CUT AND ADD THAT MOST RECESSIONWARY JAPANESE CONSUMERS WOULD LIKELY SAVE RATHER THAN SPEND ANY TAX SAVINGS AS A STIMULATIVE EFFORT IT JUST WON'T WORK A SENIOR MONETARY OFFICIAL SAYS PRIVATELY OF INCOME TAX CUTS THE BUREAUCRATS PARTICULARLY AT THE MINISTRY OF FINANCE LIKELY WILL TRY TO SLOW THE TAXCUTTING PROCESS THOUGH PRIME MINISTER MORIHIRO HOSOKAWA COULD ORDER A RETROACTIVE TAX CUT AS SOON AS NOVEMBER IT IS MORE LIKELY THE MINISTRY WILL TRY TO STALL LEGISLATION UNTIL EARLY NEXT YEAR THERE ARE GROUNDS FOR THE SKEPTICISM ABOUT THE EFFICACY OF TAX CUTS IN JAPAN EVEN WITH ITS RELATIVELY HIGH TAX RATES JAPAN HAS MANAGED REMARKABLY RAPID AND STEADY ECONOMIC GROWTH THE CURRENT RECESSION SEEMS TO STEM MORE FROM CYCLICAL AND STRUCTURAL ECONOMIC PROBLEMS THAN FROM HIGH MARGINAL TAX RATES MOREOVER THE AVERAGE JAPANESE WORKER IS PUTTING 287 OF HIS INCOME IN SAVINGS THE HIGHEST LEVEL IN YEARS PAYCHECKS ARE THINNER TOO WITH OVERTIME IN AUGUST DOWN 122 FROM A YEAR EARLIER A TAX CUT MIGHT NOT BE ENOUGH TO REPLACE THE LOSS IN OVERTIME INCOME BUREAUCRATS ARGUE SO CONSUMERS WON'T FEEL RICHER MANY PRIVATESECTOR ECONOMISTS AGREE BUT SAY KEEPING TAX RATES AT CURRENT LEVELS WOULD BE WORSE THERE'S A HIGH POSSIBILITY THAT A FIVETRILLIONYEN CUT WILL JUST HELP JAPAN AVOID A FURTHER DOWNTURN IN 1994 MR ENKYO SAYS MR KATO BELIEVES THAT CONSUMERS WOULD INITIALLY SPEND ABOUT 35 OR 21 TRILLION YEN OF A SIXTRILLIONYEN TAX CUT AND OVER A PERIOD OF TWO YEARS WOULD RAISE THAT PROPORTION TO SPEND 75 OF THE TAX CUT THAT KIND OF SPENDING IS A POSITIVE FOR THE ECONOMY HE SAYS GENERATING ENOUGH NEW BUSINESS TO PROVIDE A FOLLOWTHROUGH FOR A RECOVERY JAPAN'S MOST LIKELY COURSE IS TO CUT THE MAXIMUM TAX RATE TO ABOUT 50 REDUCE THE NUMBER OF INCOME CATEGORIES AND RAISE THE MINIMUM INCOMEDEDUCTION RATE WHICH WOULD PUT MORE PEOPLE IN LOWER TAX CATEGORIES MOST JAPANESE PAY BETWEEN 10 AND 50 OF THEIR INCOME IN NATIONAL TAX AND BETWEEN 5 AND 15 IN LOCAL TAX ANY CUT IS SURE TO HURT GOVERNMENT REVENUE PARTICULARLY SINCE FALLING JAPANESE CORPORATE PROFITS HAVE MADE INCOME TAXES A MORE IMPORTANT COMPONENT OF TOTAL GOVERNMENT REVENUE INCOME TAXES NOW SUPPLY ABOUT 60 OF TOTAL TAX REVENUES IN JAPAN UP FROM THE USUAL AVERAGE OF 40 TO 45 ANOTHER IMPORTANT REVENUE SOURCE IS THE 3 CONSUMPTION TAX IF INCOME TAXES ARE CUT IT'S LIKELY THAT THE JAPANESE GOVERNMENT WILL VOW TO RAISE THE CONSUMPTION TAX AFTER THE ECONOMY RECOVERS TO MAKE UP FOR LOST REVENUE 9310060132 931006 YIELDS ON CDS SHOW LITTLE CHANGE IN WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS CHANGED LITTLE IN THE WEEK ENDING YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS REMAINED AT 269 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS EASED TO 442 FROM 443 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS CREPT UP TO 309 FROM 307 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD INCHED UP TO 456 FROM 452 ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE SLIPPED TO 275 FROM 276 ON FIVEYEAR JUMBOS THE AVERAGE REMAINED AT 451 ACCORDING TO BANXQUOTE 9310060131 931006 INTERNATIONAL SMALL INVESTORS WILL TRY TO BLOCK VOLVORENAULT DEAL BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM CLAIMING THAT THE PROPOSED MERGER WITH RENAULT SA IS BAD FOR AB VOLVO STOCKHOLDERS SWEDEN'S FEDERATION OF SMALL INVESTORS SAID IT WOULD LAUNCH A PROXY BATTLE ATTEMPTING TO FORCE ANNULMENT OR MAJOR RENEGOTIATION OF THE BALLYHOOED CORPORATE MARRIAGE THE GROUP KNOWN AS AKTIESPARARNA REPRESENTS INVESTORS WHO HOLD ROUGHLY 10 OF VOLVO'S SHARE CAPITAL OUTSTANDING AND THUS CAN'T SINGLEHANDEDLY THWART THE PROPOSED MERGER OF VOLVO'S CAR AND TRUCK OPERATIONS WITH RENAULT BUT SOME OF VOLVO'S BIG INSTITUTIONAL SHAREHOLDERS HAVE PRIVATELY EXPRESSED SIMILAR RESERVATIONS ABOUT THE COMPLICATED MERGER PLAN AND ANALYSTS HERE CAUTIONED THAT A PROXY FIGHT COULD CLOUD PROSPECTS OF SHAREHOLDER APPROVAL AT A MEETING NEXT MONTH INDEED THE RENAULTVOLVO MERGER GOT OFF TO A ROCKY START IN FINANCIAL MARKETS INVESTORS STRIPPED NEARLY 10 FROM VOLVO'S SHARE PRICE IN THE FIRST FOUR TRADING SESSIONS AFTER THE PLAN WAS UNVEILED EARLY LAST MONTH THE STOCK HAS REBOUNDED SOME BUT STILL REMAINS 10 BELOW ITS PREAGREEMENT LEVEL MUCH OF THE EARLY OPPOSITION TO THE MERGER REFLECTED OUTRAGE OVER RELINQUISHING CONTROL OF THE NATION'S BESTKNOWN COMPANY TO THE FRENCH UNDER THE MERGER PLAN THE FRENCH GOVERNMENT INITIALLY WOULD CONTROL 65 OF THE NEW OPERATING COMPANY RENAULTVOLVO RVA WITH VOLVO GETTING THE REMAINING 35 BUT BEYOND THAT AKTIESPARARNA OBJECTS TO THE PLAN BECAUSE THE INVESTOR GROUP HASN'T GOTTEN PROOF THAT FOR SHAREHOLDERS THE MERGER WILL BE BETTER THAN THE EXISTING VOLVORENAULT STRATEGIC ALLIANCE WE ASKED THEM TO PUT PRICE TAGS ON ASSETS INVOLVED IN THE DEAL WHAT VOLVO GIVES UP AND WHAT IT GETS IN RETURN SAID AKTIESPARARNA CHAIRMAN PER LINDBLAD THEY COULDN'T DO IT RESPONDING TO THE COMPLAINT A COMPANY SPOKESMAN SAID IT'S VOLVO'S FIRM CONVICTION THAT THE PROFITGENERATING CAPACITY OF THE 35 STAKE IN RENAULTVOLVO EXCEEDS THAT OF THE ASSETS BEING CONTRIBUTED TO THE NEW MERGED COMPANY WERE THEY TO REMAIN IN THE EXISTING VOLVO STRUCTURE 9310060130 931006 WHO'S NEWS AS SOCIETY'S CEO GILLESPIE HAS TAKEN AGGRESSIVE RISKS TO EXPAND HIS FIRM BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL ROBERT W GILLESPIE TOOK A GOOD DEAL OF RIBBING FRIDAY AT A SPECIAL MEETING OF SOCIETY CORP'S BOARD WHERE A MERGER WITH KEYCORP WAS UNANIMOUSLY APPROVED IT WAS A CHANCE FOR THE BOARD TO TEASE THE AMBITIOUS MR GILLESPIE SOCIETY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ABOUT HIS DECISION TO CEDE THE TOP JOBS IN THE MERGED ENTITY TO KEYCORP'S VICTOR RILEY AND BECOME CHIEF OPERATING OFFICER AND PRESIDENT AFTER ALL HERE WAS A MAN WHO AFTER JOINING SOCIETY AS A PARTTIME TELLER DURING GRADUATE SCHOOL HAD NEVER ONCE FALTERED OR TAKEN A DETOUR DURING HIS RAPID ASCENT TO THE TOP OF THE CLEVELANDBASED BANK HOLDING COMPANY WE KIDDED HIM A BIT BECAUSE HE'S GOING TO HAVE TO MOVE OVER AND MAKE ROOM FOR RILEY WE ASKED HIM WHERE HE WAS GOING TO MOVE HIS OFFICE SAYS SOMEONE WHO ATTENDED THE BOARD MEETING ON THE 55TH FLOOR OF SOCIETY'S TWOYEAROLD 57FLOOR HEADQUARTERS TOWER BOB LAUGHED IF THE 49YEAROLD MR GILLESPIE CAN LAUGH EASILY IT'S BECAUSE HE WILL ULTIMATELY BE RUNNING THE SHOW IN TWO YEARS MR RILEY WHO IS 62 WILL GIVE HIM THE JOB OF CEO AND REMAIN CHAIRMAN FOR AN ADDITIONAL THREE YEARS MOREOVER ALTHOUGH THE MERGED COMPANY WILL BE CALLED KEYCORP IT WILL BE BASED IN MR GILLESPIE'S BELOVED HOMETOWN OF CLEVELAND WHERE HE HAS MADE HIS MARK BOTH AS AN AGGRESSIVE RISK TAKER AND AS A CIVIC LEADER WHOSE PREOCCUPATION HAS BEEN BRINGING THE CITY'S DISPARATE CULTURAL AND RACIAL GROUPS CLOSER TOGETHER THE CURRENT KEYCORP IS BASED IN ALBANY NY IN AN INTERVIEW MR GILLESPIE WAS ASKED IF HE EXPECTS TO BECOME CHAIRMAN AFTER MR RILEY RETIRES I DON'T THINK THAT FAR DOWN THE ROAD HE REPLIED HOWEVER PEOPLE WHO KNOW HIM WELL DESCRIBE HIM AS SOMEONE WHO THINKS YEARS INTO THE FUTURE I LIKE TO THINK BACK JUST A FEW YEARS AGO WHEN HE INHERITED A 10 BILLION COMPANY AND HE HAD VISIONS OF IT BEING A 50 BILLION COMPANY SAYS FREDERICK DEAL A FORMER SOCIETY EXECUTIVE WHO IS NOW CEO OF FIRST EASTERN CORP WILKESBARRE PA MR GILLESPIE'S GOAL UPON BEING NAMED CEO IN 1987 AT THE AGE OF 42 WAS TO CREATE A REGIONAL POWERHOUSE BY TAKING RISKS AND ACQUIRING LARGERTHANEXPECTED BANKS EVEN THOSE WITH TROUBLED LOAN PORTFOLIOS THAT WAS PREFERABLE HE SAYS TO MAKING SMALL CONSERVATIVE ACQUISITIONS AND THUS DISSIPATING OUR EFFORTS OVER A HALFDOZEN THINGS SAYS ELMER L MESZAROS AN ANALYST WITH ROULSTON & CO IN CLEVELAND HE HAS A TASTE FOR THE BIG DEAL BUT IT ALSO MEANT HE FACED CONSTANT CRITICISM AND SOCIETY'S STOCK TOOK A SHORTTERM HIT AFTER EACH MAJOR ACQUISITION ANALYSTS FELT SOCIETY WAS TAKING ON TOO MANY BAD LOANS AND PAYING TOO MUCH WHEN IT AGREED TO ACQUIRE CLEVELANDBASED AMERITRUST CORP IN 1991 AND TOLEDOBASED TRUSTCORP INC IN 1989 ULTIMATELY HOWEVER BOTH ACQUISITIONS PROVED PROFITABLE AMERITRUST BROADENED SOCIETY'S CLEVELAND PRESENCE AND GAVE IT A STRONG TRUST DEPARTMENT WHILE TRUSTCORP EXTENDED SOCIETY'S PRESENCE FROM NORTHWESTERN OHIO INTO MICHIGAN AND INDIANA THOSE WERE TROUBLED BANKS AND IT TOOK A LOT OF GUTS TO GO IN THERE WE WERE REALLY HIGH BIDDERS ON TRUSTCORP AND ON AMERITRUST SAYS WALTER F LINEBERGER A RETIRED CHAIRMAN OF SOCIETY BOB HAS PROVEN HE'S ABLE TO GO IN AND MAKE A VERY THOROUGH ANALYSIS OF THE SITUATION AND WEIGH THE CHANCES OF SUCCESS VS THE CHANCES OF FAILURE INDEED MR GILLESPIE SHOWED HOW AGGRESSIVE AND STEELY HE CAN BE WHEN HE OUTBID CROSSTOWN RIVAL NATIONAL CITY CORP FOR AMERITRUST SURPRISING THE BANKING COMMUNITY WHICH CONSIDERED SOCIETY THE DARK HORSE AND STUNNING NATIONAL CITY WHICH HAD MADE TWO PRIVATE BIDS ONLY TO BE REBUFFED BY AMERITRUST'S BOARD ONCE AGAIN SOCIETY HAS SURPRISED THE BANKING COMMUNITY BY FORMING A 39 BILLION MERGER OF EQUALS WITH KEYCORP AN UNUSUAL TRANSACTION IN THE BANKING INDUSTRY WHERE BIG COMPANIES TYPICALLY ACQUIRE SMALLER ONES MR GILLESPIE KNOWS HE'S IN FOR MORE CRITICISM I'M DEVELOPING A HIDE LIKE A BUFFALO HE SAID HIS VOICE GROWING HOARSE FROM A CONTINUAL ROUND OF MEETINGS WITH ANALYSTS I HOPE WE HAVE THE SAME KIND OF OUTCOME WE'VE HAD BEFORE WHEN PEOPLE HAVE BEEN SKEPTICAL IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY SOCIETY FELL 175 TO 3075 AND KEYCORP DECLINED 150 TO 36 9310060129 931006 HEARD ON THE STREET HOMECARE MANAGEMENT SHOWS HOW HARD IT IS TO PICK WINNERS AND LOSERS IN HEALTH REFORM BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL THE HUNT IS ON FOR HEALTHCARE STOCKS THAT WILL SURVIVE AN OVERHAUL OF THE SYSTEM HOMECARE MANAGEMENT A MAILORDER PHARMACY SAYS IT WILL BE AMONG THEM OR WILL IT A LOOK AT THIS LITTLE STOCK WITH A MARKET VALUE OF 764 MILLION SHOWS HOW TOUGH IT CAN BE TO TELL THE WINNERS FROM THE LOSERS IN HEALTH CARE HOMECARE WHICH PLANS TO OFFER TWO MILLION ADDITIONAL SHARES ON NASDAQ IN COMING WEEKS PROVIDES THROUGHTHEMAIL DRUGS TO PEOPLE WHO HAVE HAD ORGANTRANSPLANT OPERATIONS THE COMPANY BOASTS IN ITS RECENT ANNUAL REPORT THAT IT'S PART OF THE SOLUTION TO RISING HEALTHCARE COSTS BECAUSE IT MAKES IT CONVENIENT FOR PATIENTS TO CONTINUE TREATMENTS THAT KEEP THE BODY FROM REJECTING A NEW LIVER OR KIDNEY FOR EXAMPLE THAT SEEMS A WORTHY GOAL BECAUSE REPEATING THE OPERATION COULD LEAD TO ANOTHER 250000 TRANSPLANT BILL BUT DON'T START PICTURING HOMECARE IN THE WINNER'S CIRCLE TOO QUICKLY INSURERS CLAIMS ADJUSTERS AND HOSPITAL OFFICIALS TELL A DIFFERENT STORY ABOUT HOMECARE RATHER THAN BEING A PART OF THE SOLUTION THEY SAY HOMECARE IS PART OF THE PROBLEM CHARGING PRICES THAT ARE SOMETIMES THREE TIMES AS HIGH AS COMPETITORS' THEY ARE PRICEGOUGING SAYS LINDSAY DAVIDSON A CLAIMS ADJUSTER IN MINNESOTA WHO WORKS FOR A NUMBER OF LARGE INSURERS HOMECARE SAYS IT'S NOT TRUE BUT THE CLINTON HEALTH PLAN ALSO WOULD BAN NATIONWIDE ONE OF THE COMPANY'S PRACTICES KNOWN IN THE BUSINESS AS WAIVING THE COPAY THE TERM REFERS TO THE PRACTICE AMONG SOME HEALTHCARE PROVIDERS OF LETTING PATIENTS OFF THE HOOK FOR THEIR SHARE OF A HEALTH BILL TYPICALLY A DEDUCTIBLE OR COPAYMENT ALREADY ILLEGAL IN AT LEAST SEVEN STATES THIS TACTIC INFURIATES MANY POLICY MAKERS BECAUSE IT TAKES AWAY PATIENTS' STAKES IN KEEPING THEIR HEALTHCARE COSTS DOWN INSURERS FIND THE PRACTICE ESPECIALLY DISTASTEFUL THEY OFTEN GET STUCK WITH THE TAB BILLS CIRCULATING IN WASHINGTON ALSO WOULD ELIMINATE WAIVING THE COPAYMENT SUCH TALK HAS BROUGHT OUT THE SHORT SELLERS WHO ARE BETTING THAT THE COMPANY'S SHARE PRICE WILL FALL THE AMOUNT OF STOCK THEY HAVE BET AGAINST THE COMPANY HAS RISEN FROM ABOUT 107000 SHARES IN MARCH TO 534000 IN AUGUST SO FAR THEY'VE BEEN ON THE RIGHT SIDE OF THE EQUATION WITH THE STOCK FALLING IN RECENT WEEKS IN ANTICIPATION OF THE PLANNED OFFERING YESTERDAY HOMECARE CLOSED AT 11 3/4 OFF 1/2 BUT THE BEARS SAY THE STOCK COULD FALL FURTHER FOR STARTERS THEY SAY 300000 OF THE TWO MILLION SHARES BEING OFFERED TO THE PUBLIC ARE COMING FROM INSIDERS AND FEW WOULD SELL STOCK IF THEY THINK IT'S ABOUT TO SURGE HOMECARE HAS ABOUT 65 MILLION SHARES OUTSTANDING FULLY DILUTED NOT TO WORRY SAYS CLIFFORD HOTTE CHAIRMAN OF HOMECARE THE INSIDERS' REASONS FOR SELLING SHARES ARE UNRELATED TO THE COMPANY'S PROSPECTS HE SAYS THOUGH HE WOULDN'T ELABORATE MOREOVER HE SAYS THE RONKONKOMA NY COMPANY'S PRACTICES ARE SOUND VALID AND HELPFUL WE DON'T WANT TO DO ANYTHING THAT IS IMMORAL UNETHICAL OR ILLEGAL HOMECARE HE SAYS DOESN'T ROUTINELY WAIVE THE COPAYMENT INSTEAD IT BILLS THE PATIENT IF THEY DON'T PAY WHAT CAN WE DO INSURERS AND HEALTH PROFESSIONALS ARE QUICK TO SAY THAT THERE'S NOTHING ILLEGAL OR FRAUDULENT IN HOMECARE'S PRACTICES BUT SOME BIG PLAYERS AREN'T HAPPY PRINCIPAL MUTUAL LIFE INSURANCE CO IS INTERNALLY REVIEWING HOMECARE'S BILLING PRACTICES SAYS ROBERT CAMPBELL HEAD OF AN INVESTIGATORY UNIT AT THE INSURER HOMECARE'S BILLS RECEIVE SPECIAL ATTENTION INTERNALLY THERE'S NO QUESTION ABOUT IT SAYS MR CAMPBELL IN DES MOINES IOWA I THREW THEIR PRICE LIST AWAY I WAS SO DISGUSTED SAYS DEBORAH FRYE TRANSPLANT COORDINATOR AT COLUMBIA PRESBYTERIAN MEDICAL CENTER IN NEW YORK WHO SAYS SHE SAW PRICES THREE TIMES THE COMPETITION'S GLORIA HORNS TRANSPLANT COORDINATOR AT THE UNIVERSITY OF CALIFORNIA/SAN FRANCISCO SAYS SHE STEERS PATIENTS AWAY FROM HOMECARE BECAUSE OF ITS PRICES MR HOTTE MAINTAINS THAT THE COMPANY'S PRICES ARE COMPETITIVE HE ADDS WE NEGOTIATE WITH INSURANCE COMPANIES ON EVERY SINGLE BILL DREW BERGMAN CHIEF FINANCIAL OFFICER ADDS THAT HOMECARE ISN'T DEPENDENT ON ANY ONE INSURER MR HOTTE CLAIMS THAT HOMECARE'S PROSPECTS ARE BRIGHT SOME ANALYSTS AGREE JANE LOUIE OF COMMONWEALTH ASSOCIATES IN NEW YORK PREDICTS COMPOUND EARNINGS GROWTH OF 47 ANNUALLY OVER FIVE YEARS HOMECARE IS FINANCIALLY STRONG AND HAS THE CAPITAL TO EXPAND AND CONTINUE ITS IMPRESSIVE GROWTH SHE SAYS IN A REPORT THEY ARE IN THE RIGHT PLACE AT THE RIGHT TIME ADDS ANDREW LANYI AT LADENBURG THALMANN HOMECARE'S SALES FOR THE YEAR ENDED LAST APRIL WERE 264 MILLION MR LANYI ENVISIONS 40 MILLION IN THE CURRENT FISCAL YEAR ANNUAL PROFIT WHICH CAME IN AT 35 CENTS A SHARE IN APRIL COULD BE 55 CENTS IN THIS FISCAL YEAR HE SAYS MR HOTTE SAYS THAT NO MATTER WHAT HAPPENS TO COPAYMENTS THE COMPANY WILL CONTINUE TO OPERATE EXACTLY AS IT DOES NOW IN THE ORGANTRANSPLANT DRUG BUSINESS BUT WITH HEALTH REFORM LOOMING COMPANIES LIKE HOMECARE WILL BE HARD PRESSED TO CONTINUE PUTTING OUT THE LEGISLATIVE FIRES HOME INFUSION OF INTRAVENOUS DRUGS ONE AREA HOMECARE HAS TARGETED FOR ACQUISITIONS WITH ITS OFFERING PROCEEDS IS BEING TARGETED FOR SCRUTINY IN HEARINGS LED BY REP JOHN DINGELL D MICH 9310060128 931006 WHO'S NEWS WARNERLAMBERT CO WARNERLAMBERT CO MORRIS PLAINS NJ MICHAEL I SOVERN 61 YEARS OLD PRESIDENT EMERITUS OF COLUMBIA UNIVERSITY WAS ELECTED A DIRECTOR OF THIS HEALTHCARE AND CONSUMERPRODUCTS COMPANY INCREASING THE BOARD SIZE TO 14 9310060127 931006 INSIDE TRACK XEROX INSIDERS SOLD INTO PRICE WEAKNESS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL BRACE YOURSELF FOR POOR THIRDQUARTER RESULTS AT XEROX AND DON'T GET YOUR HOPES UP FOR THE FOURTH QUARTER EITHER CONSIDER ANALYSTS ARE BADMOUTHING THE STOCK AT LEAST FOR THE SHORT TERM AND INSIDER SELLING IS ACCELERATING XEROX OF STAMFORD CONN REPORTS THIRDQUARTER EARNINGS ON OCT 28 ITS RESULTS ARE LIKELY TO SHOW THE ADVERSE EFFECTS OF A STRONG DOLLAR AS WELL AS SLUGGISH SALES IN WEAK EUROPEAN ECONOMIES CURRENCY IS OBVIOUSLY HAVING AN ADVERSE IMPACT AS ARE WEAK ECONOMIES SAYS CHAIRMAN PAUL ALLAIRE THAT'S BEEN A FACTOR ALL YEAR LONG XEROX'S SHARES CLOSED YESTERDAY AT 72625 DOWN 375 CENTS ON THE NEW YORK STOCK EXCHANGE I WOULDN'T BE BUYING THE STOCK AT THESE PRICES SAYS CURT ROHRMAN AN INDUSTRY ANALYST WITH FIRST BOSTON IN NEW YORK I THINK IT'S PROBABLY FAIRLY VALUED IN THE MID60S MR ROHRMAN THINKS THE COMPANY WILL COME IN WITH THIRDQUARTER EARNINGS FOR THE PERIOD ENDED SEPT 30 OF 93 CENTS A SHARE WELL BELOW WALL STREET ESTIMATES OF 101 A SHARE AND OFF FROM 103 A SHARE A YEAR EARLIER IN AUGUST A GROUP OF SIX SENIOR XEROX INSIDERS SOLD A COMBINED 5871 SHARES AT AN AVERAGE PRICE OF 74 EACH PARING ON AVERAGE 23 OF THEIR DIRECT HOLDINGS OF COMMON STOCK ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS MOST OF THE INSIDERS RANKED AS DIVISIONAL PRESIDENTS THREE OF THE SIX INSIDERS WHO SOLD ARE MAKING THEIR FIRST SALES EVER THE FILINGS INDICATE TWO OF THE REMAINING THREE ARE MAKING THEIR LARGEST SALES EVER AT XEROX AND THE REMAINING INSIDER SEEMS TO HAVE REVERSED COURSE HAVING BEEN A BUYER OF XEROX STOCK IN FEBRUARY WHEN THE SHARES FETCHED 8475 AND THEN HAVING SOLD IN EARLY AUGUST AT 73 THIS SELLING WAVE FOLLOWS AN EARLIER ROUND OF DISPOSALS BETWEEN APRIL 30 AND JUNE 15 BY SIX OTHER MOSTLY LOWERLEVEL EXECUTIVES THOSE EXECUTIVES ALSO TRIMMED AROUND 24 OF THEIR DIRECT HOLDINGS OF COMMON STOCK BUT AT A HIGHER AVERAGE PRICE OF 7575 A SHARE FOUR OF THE SIX WERE MAKING THEIR FIRST SALES EVER AS XEROX INSIDERS EVEN IF THESE INSIDERS WISHED TO SELL A LOT MORE STOCK THEY PROBABLY COULDN'T NEWLY ESTABLISHED RULES BY THE COMPANY'S BOARD REQUIRE THAT SENIOR EXECUTIVES MAINTAIN A YEAR'S SALARY WORTH OF STOCK ON AN ANNUAL BASIS THE FEELING WAS THAT TOP EXECUTIVES SHOULD HAVE A PERSONAL STAKE IN THE SUCCESS OF THE COMPANY EXPLAINS JUDD EVERHARD A COMPANY SPOKESMAN THE RECENT SALES HE SAYS WERE FOR PERSONAL REASONS THE SELLING COMES AMID AN ERRATIC DESCENT IN XEROX'S SHARE PRICE FROM ITS RECENT HIGH OF 8125 IN JUNE THE STOCK NOW TRADES WELL OFF ITS 52WEEK HIGH OF 88875 REACHED IN EARLY FEBRUARY BUT ABOVE ITS 52WEEK LOW OF 70125 LAST MONTH WE ALWAYS BECOME WARY WHEN INSIDERS SELL INTO WEAKNESS WARNS BOB GABELE PRESIDENT OF CDA/INVESTNET A FORT LAUDERDALE FLA COMPANY THAT TRACKS INSIDERSELLING DATA IT'S A SIGNAL THAT THERE COULD BE CHANGING FUNDAMENTALS THAT ARE RESPONSIBLE FOR THE LOWER PRICES ANALYSTS WHO SPECIFICALLY FOLLOW XEROX WHICH LAST YEAR DERIVED AROUND A THIRD OF ITS 147 BILLION IN WORLDWIDE SALES FROM EUROPE ARE ANYTHING BUT BULLISH FOR THE SHORT TERM THIRTEEN PERCENT OF PROFITS CAME FROM EUROPEAN OPERATIONS IN 1992 THERE HAD BEEN A BELIEF FOR THE PAST COUPLE OF YEARS THAT THIS WAS A 10GROWTHPERYEAR COMPANY SAYS FIRST BOSTON'S MR ROHRMAN BUT THOSE EXPECTATIONS HAVE BEEN TEMPERED OVER THE PAST YEAR AMID A SLOWDOWN OF CAPITAL SPENDING ON OFFICE EQUIPMENT AROUND THE WORLD HE SAID XEROX'S COLOR COPIERS HAVE BEEN GROWING WELL BUT NOT ENOUGH TO OFFSET SLUGGISHNESS ELSEWHERE IN THE COMPANY'S OPERATIONS INCLUDING IN ITS HIGHEND COPIER BUSINESS BASED AROUND XEROX'S 135PAGEPERMINUTE DOCUTECH MACHINE THE SECONDHALF RESULTS ARE GOING TO BE AFFECTED BY THREE MAJOR THINGS NEGATIVE CURRENCY TRANSLATION EFFECTS OWING TO THE DOLLAR'S APPRECIATION AGAINST THE DEUTSCHEMARK AND OTHER EUROPEAN CURRENCIES WEAK ECONOMIES WORLDWIDE AND A DIFFICULT SALESFORCE REORGANIZATION MR ROHRMAN SAYS WHILE AN ANTICIPATED ROUND OF INTERESTRATE CUTS IN EUROPE COULD HELP SPUR SPENDING ON THE CONTINENT ON XEROX'S ARRAY OF OFFICEDOCUMENTATION EQUIPMENT AT BEST WE WOULDN'T EXPECT TO SEE A POSITIVE IMPACT ON XEROX UNTIL THE FIRST HALF OF NEXT YEAR HE CONCLUDES HE EXPECTS FOURTHQUARTER EARNINGS TO BE FLAT AT 192 A SHARE EVEN THOSE ANALYSTS WHO ARE MAINTAINING A BUY RATING ON THE STOCK LOOKING TO ITS LONGERTERM POTENTIAL ARE SAYING THE THIRD QUARTER COULD LOOK SLOPPY WE EXPECT THIRDQUARTER EARNINGS TO BE DISAPPOINTING AT XEROX AND THIS SHOULD STRETCH INTO THE FOURTH QUARTER SAYS ALEX HENDERSON A PRUDENTIAL SECURITIES ANALYST NOTING THAT XEROX SHOULD BE RATED A BUY FOR ITS STRONG LONGTERM FUNDAMENTAL UNDERPINNINGS MR HENDERSON SAYS WE RECOMMEND CAUTION GOING INTO THE EARNINGS RELEASE AND WOULD LOOK TO OPPORTUNITIES ON WEAKNESS AS FOR PINNING HOPES ON RATE CUTS IN EUROPE NO GREEN LIGHT THERE THE TEMPTATION TO BROADLY BUY MULTINATIONAL STOCKS IN ANTICIPATION OF RATE CUTS IN EUROPE AND AN ECONOMIC RECOVERY MAKES SENSE BUT HAS SUBSTANTIAL RISKS AS WELL HE SAYS IN PARTICULAR THE RISK THAT RECOVERY IS DELAYED BEYOND CURRENT EXPECTATIONS POSSIBLY INTO 1995 COULD CAUSE A MATERIAL CORRECTION IN THESE SHARES MR HENDERSON SAYS IN A SECOND RECENT CASE OF INSIDERS SELLING INTO STOCKPRICE WEAKNESS EXECUTIVES AT SMITH'S FOOD & DRUG CENTERS INC HAVE BEEN CUTTING BACK ON THEIR HOLDINGS THE STOCK WAS UNCHANGED YESTERDAY AT 20 ON THE BIG BOARD JUST ABOVE ITS 52WEEK LOW OF 19625 TESTED ON MONDAY IN AUGUST FIVE INSIDERS AT THE SALT LAKE CITY COMPANY SOLD A TOTAL OF 77100 COMMON A AND COMMON B SHARES AT AN AVERAGE PRICE OF 2488 EACH THREE INSIDERS SOLD MINIMAL AMOUNTS LESS THAN 10 OF THEIR TOTAL HOLDINGS BUT TWO OTHER OFFICIALS DIRECTOR ALAN HOEFER AND OFFICER AND DIRECTOR JAMES HALLSEY SOLD 20 AND 13 OF THEIR DIRECT HOLDINGS RESPECTIVELY A COMPANY SPOKESWOMAN SAID MR HALLSEY WILL RETIRE OCT 15 THIS LATEST WAVE OF SELLING AT THE FOOD AND DRUG RETAILER FOLLOWS A FAIRLY STEADY DECLINE IN THE COMPANY'S SHARE PRICE FROM ITS 52WEEK HIGH OF 3775 IN LATE JANUARY SMITH'S FOOD THE 28TH LARGEST FOODANDDRUG RETAILER IN THE NATION RUNS SUPERCOMBINATION FOOD AND DRUG STORES IN EIGHT WESTERN STATES PRIOR TO THE AUGUST CLUSTER OF SELLING FIVE INSIDERS INCLUDING FOUR OF THE CURRENT FIVE SELLERS HAD UNLOADED A TOTAL 87193 COMMON A AND COMMON B SHARES FROM JANUARY THROUGH EARLY MARCH WITH THE BULK OF THAT SELLING COMING BEFORE THE STOCK BEGAN ITS DESCENT SHELLEY THOMAS A COMPANY SPOKESWOMAN SAID THIRDQUARTER EARNINGS DUE OUT OCT 26 WILL BE AFFECTED BY RECENT AGGRESSIVE PRICECUTTING MEASURES TAKEN BY THE CHAIN IN ITS UTAH OPERATIONS THE COMPANY HAS ALREADY DISCLOSED THE EFFECTS TO ANALYSTS SHE SAID 9310060125 931006 BOND TRADE GROUP RECOMMENDS BAN ON POLITICAL GIFTS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE PUBLIC SECURITIES ASSOCIATION RECOMMENDED A TEMPORARY BAN ON ALL POLITICAL CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS BY MUNICIPAL BOND PROFESSIONALS THE BOND TRADE GROUP SAID THE BAN SHOULD REMAIN IN EFFECT UNTIL REGULATORS PUT INTO PLACE A FINAL RULE WITH CLEAR STANDARDS GOVERNING POLITICAL CONTRIBUTIONS BY DEALERS THE MUNICIPAL SECURITIES RULEMAKING BOARD HAS PROPOSED A RULE THAT WOULD BAR MUNI DEALERS FROM MAKING POLITICAL CONTRIBUTIONS TO OBTAIN OR RETAIN BUSINESS THE PLAN WHICH IS SUBJECT TO PUBLIC COMMENT AND REVIEW BY THE SECURITIES AND EXCHANGE COMMISSION ISN'T LIKELY TO RECEIVE FINAL APPROVAL FOR MONTHS YESTERDAY'S RECOMMENDATION COMES AS THE SEC IS CONDUCTING AN INQUIRY INTO THE ROLE OF POLITICAL CONTRIBUTIONS IN THE MUNICIPAL BOND MARKET AND SEC CHAIRMAN ARTHUR LEVITT HAS INVITED WALL STREET LEADERS TO AN OCT 18 MEETING TO DISCUSS THE ISSUE WITH AN APPARENT EYE TOWARD TRYING TO END THE PRACTICE KNOWN AS PAYTOPLAY HEATHER RUTH THE EXECUTIVE DIRECTOR OF THE BOND TRADE GROUP SAID DEALERS DON'T WANT POLITICAL CONTRIBUTIONS TO BE A FACTOR IN THE SELECTION OF UNDERWRITERS SHE SAID IN AN INTERVIEW THAT THE CALL FOR A MORATORIUM WAS SPURRED BY A REGULATORY WARNING THAT PAYTOPLAY PAYMENTS COULD BE GROUNDS FOR SECURITIESLAW ENFORCEMENT ACTION AGAINST BOND DEALERS MOREOVER THE MRSB A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT HAS SAID IT WOULD INVOKE A BROAD EXISTING RULE TO PROHIBIT BUSINESSLINKED PAYMENTS BY BOND DEALERS WHILE ITS ANTIPAYOFF PROPOSAL IS PENDING AND REGULATORS WHO ENFORCE THE MSRB'S RULES HAVE MADE CLEAR THEY WOULD BE ALERT TO IMPROPER DEALER PAYMENTS MS RUTH CITING RISING CONCERN THAT PEOPLE ARE VULNERABLE TO ENFORCEMENT ACTION SAID THE TRADE GROUP MADE ITS RECOMMENDATION TO GET THE WORD OUT TO MEMBERS THAT THEY PUT THEMSELVES AT RISK WITH PAYTOPLAY POLITICAL CONTRIBUTIONS PUBLIC FINANCE PROFESSIONALS ACCORDING TO THE GROUP HAVE BECOME INCREASINGLY CONCERNED ABOUT THE ESCALATION OF PRESSURE FOR CONTRIBUTIONS FROM STATE AND LOCAL OFFICIALS AND CANDIDATES FOR SUCH OFFICE OVER THE LAST DECADE AND A HALF MSRB EXECUTIVE DIRECTOR CHRISTOPHER TAYLOR RECENTLY TOLD BOND DEALERS ANY CONNECTION BETWEEN POLITICAL CONTRIBUTIONS AND THE AWARDING OF BUSINESS IS OVER IT WILL NOT BE TOLERATED AND IT WILL BE PUNISHED IN HIS INVITATIONS TO WALL STREET LEADERS SEC CHAIRMAN LEVITT SAID A VOLUNTARY INDUSTRY APPROACH TO CAMPAIGN CONTRIBUTIONS DOVETAILS NICELY WITH THE MSRB'S INITIATIVE 9310060124 931006 FINANCING BUSINESS SIGNET STAR HOLDINGS INC SIGNET STAR HOLDINGS INC STAMFORD CONN SAID IT AND A SELLING SHAREHOLDER PLAN AN INITIAL PUBLIC OFFERING OF 59 MILLION COMMON SHARES THE REINSURANCE HOLDING COMPANY PLANS TO OFFER 33 MILLION SHARES WHILE GENERAL RE CORP ANOTHER REINSURER WILL SELL 26 MILLION SHARES SIGNET STAR ESTIMATES THE SELLING PRICE AT 18 A SHARE AND SAID IT WILL USE 36 MILLION OF PROCEEDS FROM THE SALE TO REDEEM CONVERTIBLE NOTES AND FOR GENERAL CORPORATE PURPOSES AFTER THE SALE WR BERKLEY CORP A PROPERTY AND CASUALTY INSURANCE HOLDING COMPANY BASED IN GREENWICH CONN WILL BE SIGNET'S LARGEST SHAREHOLDER WITH 78 MILLION SHARES OR 48 GENERAL RE WILL BE LEFT WITH 26 MILLION SHARES OR 16 THOUGH THAT FIGURE WILL DROP TO 17 MILLION SHARES OR 11 IF THE OVERALLOTMENT OPTION IN THE OFFERING IS USED SIGNET NOTED MERRILL LYNCH & CO IS LEAD UNDERWRITER 9310060123 931006 FINANCING BUSINESS ROBERDS INC ROBERDS INC WEST CARROLLTON OHIO FILED AN INITIAL PUBLIC OFFERING OF 27 MILLION COMMON SHARES THE HOME FURNISHINGS RETAILER SAID IT EXPECTS THE STOCK TO COME TO MARKET AT BETWEEN 14 AND 16 A SHARE PROCEEDS ARE EXPECTED TO BE ABOUT 369 MILLION THE COMPANY SAID IT WILL USE 181 MILLION OF THE PROCEEDS TO REDUCE DEBT ABOUT 108 MILLION TO PAY A DISTRIBUTION OF ACCUMULATED EARNINGS TO SHAREHOLDERS ARISING FROM THE TERMINATION OF THE COMPANY'S SCORPORATION STATUS AND THE BALANCE FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES KIDDER PEABODY & CO WILL BE LEAD UNDERWRITER AND THE OVERALLOTMENT OPTION IS FOR 405000 SHARES 9310060122 931006 POLICE PENSION FUND TO INVEST IN EXPORTS BY NEW YORK FIRMS NEW YORK THE NEW YORK CITY POLICE DEPARTMENT PENSION FUND SAID IT WOULD INVEST 30 MILLION TO SUPPORT EXPORTS BY SMALL AND MIDSIZE BUSINESSES IN THE NEW YORK AREA THE PROGRAM WILL PROVIDE LOANS OF 25000 TO 25 MILLION TO FINANCE EXPORTS THE LOANS WOULD BE ISSUED BY THE NEW YORK STATE JOB DEVELOPMENT AUTHORITY GUARANTEED BY THE US EXPORTIMPORT BANK AND PURCHASED BY THE PENSION FUND INITIALLY THE PROGRAM WILL PROVIDE SHORTTERM FINANCING FOR AS LONG AS ONE YEAR EVENTUALLY IT WILL OFFER MEDIUMTERM FINANCING FOR AS LONG AS FIVE YEARS THE EXPORTIMPORT BANK SAID THE 30 MILLION IN FINANCING COULD SUPPORT AS MUCH AS 100 MILLION IN OVERSEAS SALES 9310060121 931006 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN INTERNATIONAL MEDIA EXECUTIVES MEETING IN HONG KONG CALLED FOR SAFEGUARDING PRESS FREEDOM THERE THE GROUP SAID LIMITS ON THE PRESS COULD THREATEN THE ECONOMY OF THE BRITISH COLONY WHICH REVERTS TO CHINA IN 1997 THE USBASED WORLD PRESS FREEDOM COMMITTEE URGED HONG KONG'S BRITISH ADMINISTRATION TO REPEAL COLONIAL LAWS THAT COULD CURTAIL OR THREATEN A FREE PRESS POSSIBLE PRESS CURBS ONCE CHINA ASSUMES SOVEREIGNTY HAVE BEEN A GROWING CONCERN AMONG THE COLONY'S JOURNALISTS PARTICULARLY SINCE THE RECENT ARREST IN CHINA OF A REPORTER FOR THE HONG KONG NEWSPAPER MING PAO FOR ALLEGED ESPIONAGE AND THE LIFE SENTENCE GIVEN TO A CHINESE JOURNALIST FOR LEAKING A SPEECH BY CHINA'S COMMUNIST PARTY CHIEF THE MEDIA GROUP ASKED CHINA TO CLARIFY THE FACTS ABOUT THE MING PAO REPORTER'S ARREST THE GROUP ASSAILED THE CLIMATE OF INTIMIDATION INCREASINGLY FACING HONG KONGBASED JOURNALISTS EFFORTS TO INTEGRATE SIX SOUTHEAST ASIAN NATIONS' ECONOMIES IN A FREETRADE ZONE HAVE FAILED BUT TRADE AND ECONOMIC MINISTERS OF THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS PLAN TO RELAUNCH THE ASEAN FREE TRADE AREA AT A MEETING THIS WEEK THE PROGRAM WAS TO HAVE BEGUN LAST JAN 1 BUT GROUND TO A HALT BECAUSE OF DELAYS IN PLANNED TARIFF CUTS AMONG THE MEMBERS THAILAND INDONESIA SINGAPORE MALAYSIA BRUNEI AND THE PHILIPPINES AFTER FIVE CONSECUTIVE MONTHLY INCREASES PRICES OF BRITISH HOMES DECLINED 18 IN SEPTEMBER AN INDEX OF NATIONWIDE BUILDING SOCIETY A MORTGAGE LENDER FELL TO 19169 FROM 19526 IN AUGUST AND WAS OFF 25 FROM 19666 A YEAR EARLIER IN THE INDEX WHICH ISN'T ADJUSTED FOR INFLATION 100 EQUALS THE 1983 FIRST QUARTER BUT NATIONWIDE WARNED AGAINST READING TOO MUCH INTO THE SEPTEMBER DROP NOTING THAT THIRDQUARTER DATA SHOW A RISE OF 07 LAST MONTH'S DECREASE COULD REFLECT CAUTION AHEAD OF BRITAIN'S ANNUAL BUDGET STATEMENT AND UNDERLINES THE HOUSING MARKET'S FRAGILE RECOVERY FROM RECESSION POLISH PRIME MINISTER HANNA SUCHOCKA SOUGHT TO REASSURE FOREIGN INVESTORS DESPITE THE ELECTION VICTORY BY AN ALLIANCE WITH ROOTS IN THE FORMER COMMUNIST SYSTEM SHE TOLD THE AMERICAN CHAMBER OF COMMERCE THERE'S NO WAY BACK TO A TOTALITARIAN SOCIETY HER DEMOCRATIC UNION FINISHED THIRD IN PARLIAMENTARY ELECTIONS SEPT 19 AND HER CENTRIST GOVERNMENT IS TO BE SUCCEEDED BY A COALITION DOMINATED BY THE DEMOCRATIC LEFT ALLIANCE AND THE PEASANTS' PARTY FOREIGN INVESTORS HAVE BEEN AWAITING THE NEW LEADERSHIP'S STANCE ON MARKET REFORMS BIG LOBBIES IN DENMARK WERE SKEPTICAL ABOUT THE GOVERNMENT'S RENEWED APPEAL TO A NEW SESSION OF PARLIAMENT FOR TAX CUTS TO BOOST FLAGGING GROWTH DENMARK HOPES TO PUMP CASH INTO THE ECONOMY TO EASE UNEMPLOYMENT NOW AT A RECORD 12 EMPLOYERS SAID PROPOSED HIGHER CONTRIBUTIONS TO EMPLOYEETRAINING COURSES WOULD HINDER JOB CREATION FARMERS ATTACKED UTILITY TAXES TO FINANCE INCOMETAX CUTS INDUSTRIES CRITICIZED GOVERNMENT RELUCTANCE TO CHECK HIGH OUTLAYS SUCH AS FOR SOCIAL BENEFITS AND THE FINANCIAL SECTOR APPEALED FOR RESTRAINT ON NEW SOCIAL PROGRAMS GERMAN CONSUMERS RACKED UP RECORD DEBT LAST YEAR AND COLLECTION AGENCIES ARE HAVING A HARDER TIME GETTING PAYMENTS FROM INDIVIDUALS AND BUSINESSES CONSUMER DEBT TOTALED 21067 BILLION CONSUMERS' WORKING GROUP SAID CITING IN PART UNEMPLOYMENT AND UNDEREMPLOYMENT SINCE REUNIFICATION AND RECESSION THE FEDERATION OF GERMAN COLLECTION AGENCIES SAID ITS MEMBERS' SUCCESS RATE IN SECURING PAYMENTS THIS YEAR FELL TO 56 THE LOWEST IN MORE THAN TWO DECADES FROM 60 LAST YEAR WHILE ACCOUNTS RECEIVABLE CLIMBED 25 TO A TOTAL OF 246 BILLION SEPARATELY THE ECONOMY OF GERMANY'S RUHR HEAVYINDUSTRY BELT WORSENED AGGRAVATED BY STEEL AND MINING WOES HALF THE REGION'S INDUSTRIAL CONCERNS A THIRD OF TRADING COMPANIES AND A FOURTH OF SERVICE FIRMS ARE ECONOMICALLY IN THE DUMPS THE IHK COMMERCE AND INDUSTRY GROUP SAID CANNES FRANCE BANNED BEGGARS AND BUMS FROM THE POSH CROISETTE SEAFRONT BOULEVARD AS WELL AS THE AREA WHERE THE ANNUAL FILM FESTIVAL IS HELD AND OTHER TOURIST ATTRACTIONS THE MAYOR CITED HARM TO PUBLIC ORDER AND THE RESORT'S IMAGE STATISTICS CANADA NOTING CHANGING ATTITUDES ABOUT MARRIAGE SAID COMMONLAW UNIONS IN 1991 MORE THAN DOUBLED TO 14 MILLION FROM A DECADE EARLIER AND THESE UNIONS REPRESENTED 10 OF CANADIAN FAMILIES UP FROM 7 FIVE YEARS EARLIER 9310060120 931006 GM CONTRACT NEGOTIATIONS ARE SET TO BEGIN TODAY DEARBORN MICH THE UNITED AUTO WORKERS UNION TODAY IS SCHEDULED TO BEGIN NEGOTIATING A THREEYEAR CONTRACT WITH FINANCIALLY TROUBLED GENERAL MOTORS CORP AND UAW PRESIDENT OWEN BIEBER SAYS THE UNION HAS NO PLANS TO OFFER GM ANY SPECIAL CONCESSIONS THE UAW HAS ALREADY SIGNED TENTATIVE THREEYEAR CONTRACTS WITH FORD MOTOR CO AND CHRYSLER CORP BUT GM IS EXPECTED TO BE THE MOST DIFFICULT NEGOTIATION DUE TO ITS FINANCIAL TROUBLES AS WELL AS ITS SIZE GM HAS 265000 HOURLY WORKERS 110000 MORE THAN CHRYSLER AND FORD COMBINED MR BIEBER SAID HE WAS NOT YET READY TO GIVE GM A DEADLINE TO SIGN A CONTRACT HOWEVER UAW OFFICIALS EXPECT MR BIEBER TO MOVE QUICKLY WE'LL GO OVER THERE TO GM TOMORROW SEE WHERE EVERYTHING IS AND GO FROM THERE MR BIEBER SAID YESTERDAY MR BIEBER GAVE FEW OTHER DETAILS BUT REITERATED HIS POSITION THAT GM MUST SIGN A CONTRACT THAT FOLLOWS THE PATTERN OF THE ONE NEGOTIATED LAST MONTH AT FORD PATTERN IS PATTERN MR BIEBER DECLARED MONDAY 9310060119 931006 SHELL BP PLAN PLATFORM PROJECT OFF GULF COAST OIL AND GAS DECK TO EXTEND 3000 FEET UNDER WATER AT A COST OF 12 BILLION BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON SHELL OIL CO AND BRITISH PETROLEUM CO SAID THEY PLAN TO SPEND 12 BILLION BUILDING THE DEEPEST OFFSHORE OIL AND GAS PRODUCTION PLATFORM EVER IN US WATERS CODENAMED MARS FOR ITS DESIGNING ENGINEERS' AMBITIONS TO REACH REMOTE AREAS THE HUGE NEW PLATFORM IN THE GULF OF MEXICO WILL EXTEND 3000 FEET UNDER WATER ROUGHLY THE HEIGHT OF TWO SEARS TOWERS OIL INDUSTRY ENGINEERS SAY MARS WILL INTRODUCE NEW DEEPWATER TECHNOLOGY AND OPEN NEW PRODUCTION FRONTIERS THAT MAY ULTIMATELY YIELD OIL RESERVES OF AS MUCH AS 15 BILLION BARRELS AT VARIOUS SITES ON A PAR WITH THE NATION'S LARGEST FIELD PRUDHOE BAY IN ALASKA THE ANNOUNCEMENT COMES AT A TIME OF WEAK DEMAND FOR OIL AND SLUMPING PRICES BUT SHELL OFFICIALS SAY THEY'RE PLANNING DECADES AHEAD AND THEY EXPECT MARS TO BE PRODUCING FOR AT LEAST 30 YEARS IN ANY EVENT OIL PRICES HAVE BEGUN RISING SHELL SAID THE WEIGHTED AVERAGE PRICE IT RECEIVED FOR ITS OIL IN THE US IN THE FIRST HALF WAS 1539 A BARREL COMPARED WITH 1486 A YEAR EARLIER SHELL OFFICIALS DECLINED TO SAY WHAT PRICE LEVEL MUST BE MAINTAINED FOR MARS TO BE PROFITABLE BUT THEY SAID THAT THEY'RE OPTIMISTIC AND THAT THE COMPANY DOESN'T NEED TO BORROW TO PAY FOR THE PROJECT YOU DON'T HAVE TO HAVE ROSY PRICES SAID JACK E LITTLE SHELL'S EXECUTIVE VICE PRESIDENT OF EXPLORATION AND PRODUCTION SHELL THE US UNIT OF ROYAL DUTCH/SHELL GROUP IS THE OPERATOR OF THE FIELD ALSO CALLED MARS SHELL ALSO OPERATES THE MARS PROJECT AND OWNS A 715 INTEREST THE REMAINING 285 IS OWNED BY LONDONBASED BP SHELL ESTIMATES THE POTENTIAL RECOVERY OF THE MARS FIELD ALONE AT 700 MILLION BARRELS OF OIL OR THE ENERGY EQUIVALENT IN NATURAL GAS IF ALL THAT IS RECOVERABLE IT WOULD BE ENOUGH TO SUPPLY THE ENTIRE US FOR 41 DAYS AT TODAY'S DEMAND RATE WE BELIEVE MARS IS THE LARGEST DISCOVERY THAT HAS BEEN MADE IN THE GULF OF MEXICO IN 20 YEARS SAID SHELL'S MR LITTLE PLANS FOR THE FIRST PHASE OF DEVELOPMENT OF THE MARS FIELD CALL FOR INSTALLATION OF A TENSIONLEG PLATFORM SUCH A PLATFORM IS ANCHORED TO THE OCEAN FLOOR BY CABLELIKE TENDONS OTHER PRODUCTION SYSTEMS MAY BE CONSTRUCTED LATER THE MARS FIELD LOCATED 130 MILES SOUTHEAST OF NEW ORLEANS IS EXPECTED TO START PRODUCING IN LATE 1996 SHELL SAID THE MARS PROJECT IS EXPECTED TO PRODUCE ABOUT 100000 BARRELS OF OIL A DAY SHELL'S CURRENT PRODUCTION IN THE GULF IS 132000 BARRELS A DAY THE GULF ACCOUNTS FOR 31 OF THE COMPANY'S OVERALL OIL AND GAS YIELDS BP CURRENTLY PRODUCES ABOUT 20000 BARRELS OF OIL A DAY FROM OTHER GULF OF MEXICO PROPERTIES AND IT EXPECTS ITS SHARE FROM MARS TO ROUGHLY DOUBLE THAT TOTAL A BP SPOKESMAN SAID THE COMPANY WON'T HAVE TO BORROW TO COME UP WITH ITS SHARE OF FUNDING FOR THE MARS PROJECT ABOUT 340 MILLION SHELL IS BETTING BIG THAT THE NEW DEEPWATER PLATFORM WILL PERFORM PROFITABLY THE COMPANY HOLDS 32 OF ALL THE GULF'S KNOWN OIL AND GAS ACREAGE THAT'S AT LEAST 1500 FEET BELOW THE WATER'S SURFACE 9310060118 931006 LEISURE & ARTS THEATER NEW LIFE FOR AN OLD DUO BY LAURIE WINER IT'S A LITTLEKNOWN FACT THAT LYRICIST SHELDON HARNICK AND COMPOSER JERRY BOCK AGREED TO WRITE SHE LOVES ME BECAUSE THEY WERE HAVING TROUBLE FINDING A PRODUCER FOR ANOTHER MUSICAL THEY HAD BEEN WORKING ON AND EVEN WHEN THEY DID FIND A PRODUCER MOST POTENTIAL BACKERS FOUND THAT SHOW TO HAVE LIMITED COMMERCIAL APPEAL SO IN MARCH 1962 THEY PUT ASIDE FIDDLER ON THE ROOF AND BEGAN SHE LOVES ME ONE OF THE MOST CHARMING MUSICALS EVER WRITTEN FOR THE BROADWAY STAGE SHE LOVES ME OPENED THE FOLLOWING YEAR PLAYED FOR SEVEN MONTHS AND LOST ALL OF ITS 300000 INVESTMENT NO MATTER FIDDLER WHICH OPENED IN 1964 RAN FOR ALMOST EIGHT YEARS AND IF YOU INCLUDE ALL STAGE PRODUCTIONS MOVIE RIGHTS AND SHEET MUSIC HAS SO FAR GROSSED CLOSE TO 100 MILLION ORIGINAL INVESTORS HAVE MADE A 3390 PROFIT AND SHE LOVES ME NOW ENJOYING A SUPERB PRODUCTION AT THE BROOKS ATKINSON THEATER IS FINALLY BEING WIDELY HAILED AS ONE OF THE DOZEN OR SO FLAWLESS BOOK MUSICALS IN ALL OF BROADWAY HISTORY NOT THAT THE ORIGINAL WENT UNLAUDED BUT IN 1963 THE CRITICS SEEMED ALMOST TO RESIST THE ALLURE OF THE MUSICAL WHICH BOOK WRITER JOE MASTEROFF BASED MORE ON THE ERNST LUBITSCH FILM THE SHOP AROUND THE CORNER THAN ON THE FILM'S SOURCE MIKLOS LASZLO'S PLAY PARFUMERIE ALL VERSIONS FEATURE TWO PERFECTLY INSYNC BUT ANONYMOUS PEN PALS WHO UNBEKNOWNST TO THEM WORK TOGETHER IN A PREWAR HUNGARIAN PARFUMERIE WHERE IN PERSON THEY DETEST EACH OTHER THE CRITICS FRESH FROM REVIEWING HEARTIER FARE LIKE A FUNNY THING HAPPENED ON THE WAY TO THE FORUM LITTLE ME AND OLIVER FOUND SHE LOVES ME TO BE A MUSICAL THAT STAKES EVERYTHING ABSOLUTELY EVERYTHING ON CHARM WALTER KERR HOWARD TAUBMAN IN THE NEW YORK TIMES WARNED IF YOU ARE ALLERGIC TO SUGARY CONFECTIONS AND TO FRAGILE ROMANCES KEEP AWAY SENSING PRECIOUSNESS AUDIENCES DID BUT THE CURRENT PRODUCTION DIRECTED AND ACTED BY PEOPLE WHO NEVER SAW THE ORIGINAL IS ACCORDING TO ITS AUTHORS A MORE VITAL SHOW STARTING WITH ROB MARSHALL'S ATHLETIC MUSICAL STAGING WHICH HAS THE YOUNG HERO BOYD GAINES CLIMBING UP STAIRCASES AND COLLAPSING FROM JOY IN THE TITLE SONG WHEN HE REALIZES HIS LOVE FOR THE HEROINE DIANE FRATANTONI IT ALSO HAS MORE PSYCHOLOGICAL SUBTLETY DESPITE THE PREVIOUS INDELIBLE PERFORMANCES OF BARBARA COOK AND JACK CASSIDY CAPTURED ON THE ORIGINAL CAST ALBUM THE DIRECTOR SCOTT ELLIS APPROACHED IT AS A REAL SITUATION THESE CHARACTERS ARE PEOPLE WHOSE JOBS ARE REALLY AT STAKE WHICH MAKES THE SHOW LESS OF A BONBON SAYS MR HARNICK IT HAS MORE MUSCULARITY MORE ABANDON OFFERS MR BOCK YES AN EXCELLENT WORD SAYS MR HARNICK THE MEN SITTING COMFORTABLY ON THE SOFA AT MR HARNICK'S BERESFORD APARTMENT REGRLY INTERRUPT CORRECT AND GENERALLY PARTICIPATE IN EACH OTHER'S SENTENCES THEY ALSO AGREE THAT 1993 AUDIENCES MIGHT PUT A HIGHER PREMIUM ON THE DELIGHT OF SHEER ROMANCE AND THAT GIVEN THE PRESENT EMBATTLED NATURE OF THE PART OF THE WORLD IN WHICH THE MUSICAL IS SET SHE LOVES ME NOW TAKES ON MORE OF A TREASUREDMOMENTINTIME QUALITY A BIT OF PEACE BEFORE THE STORM IT PLAYED THE SAME ROLE IN THE LIVES OF ITS CREATORS 30 YEARS AGO LEGEND HAS IT THAT THEY WROTE TO LIFE THE TOASTING SONG FOR TEVYE AND FRIENDS IN FIDDLER AND GOOD MORNING GOOD DAY THE SUNNY OPENING FOR THE STORE CLERKS OF SHE LOVES ME ON THE SAME DAY IN MARCH 1962 THEY DON'T RECALL THAT HAPPENING BUT AGREE I SHOULD KEEP IT IN THE STRANGE THING MR HARNICK SAYS LAUGHING IS THAT WE WROTE TO LIFE' FOR SHE LOVES ME' AND GOOD MORNING' FOR FIDDLER' AT THE TIME MR HARNICK WAS WINDING UP A ONEYEAR MARRIAGE TO ELAINE MAY AT THE MENTION OF WHICH HE ROLLS HIS EYES AND THE DIVORCE LEFT HIM OPEN TO EVERYTHING BOTH JOY AND SORROW IT ALSO WAS WHEN THE TWO MEN BEGAN TO TEST THE RANGE OF THEIR EXTRAORDINARY COLLABORATION WHICH ENCOMPASSED THE WIT OF FIORELLO THE SWEETNESS OF SHE LOVES ME AND THE RICH MELANCHOLY AND WISDOM OF FIDDLER SADLY THE COLLABORATION DID NOT OUTLAST THE RUN OF FIDDLER WHICH CLOSED IN 1972 AFTER 3242 PERFORMANCES IN THEIR LAST SHOW TOGETHER THE ROTHSCHILDS 1970 THE PLAYBILL BIO READ BOCK AND HARNICK HAVE BEEN CALLED THE MODERNDAY GILBERT & SULLIVAN BUT IT SHOULD BE NOTED THAT UNLIKE THOSE EQUALLY TALENTED GENTLEMEN BOCK HAS GREAT RESPECT FOR MR HARNICK'S LYRICS AND MR HARNICK CAN OFTEN BE HEARD WHISTLING A BOCK TUNE THAT ENTRY WAS UNWITTINGLY PROPHETIC ACCORDING TO THE OXFORD COMPANION TO THEATER GILBERT WROTE LIBRETTI FOR OTHER COMPOSERS BUT WITHOUT SUCCESS JUST AS SULLIVAN WROTE MUSIC FOR OTHER LIBRETTISTS BUT FAILED TO RECAPTURE THE BRILLIANCE OF THE SAVOY OPERAS WITHOUT EACH OTHER MESSRS HARNICK AND BOCK FOLLOWED THE EXAMPLE SET BY THEIR BRITISH PREDECESSORS DURING THE ROTHSCHILDS' OUTOFTOWN TRYOUT DIRECTOR DEREK GOLDBY WAS FIRED AND REPLACED BY MICHAEL KIDD THEATER TRIVIA FANS TAKE NOTE MR KIDD'S INSERTION AS DIRECTOR ON LAST SEASON'S GOODBYE GIRL WAS ALSO WHAT CAUSED THE FAMOUS RIFT BETWEEN NEIL SIMON AND GENE SAKS TWO OTHER LONGTIME COLLABORATORS MR HARNICK WAS IN FAVOR OF MR KIDD'S HIRING MR BOCK WAS NOT THE TWO NEVER WORKED TOGETHER AGAIN AND ONLY MR HARNICK WAS EVER REPRESENTED ON BROADWAY WITH REX A HENRY VIII MUSICAL STARRING NICOL WILLIAMSON THAT RAN ONLY 41 PERFORMANCES DESPITE A RICHARD RODGERS SCORE TO DATE NO OTHER LYRICIST HAS INSPIRED THE FULL GRACE OF MR BOCK'S MELODIES AND NO OTHER COMPOSER HAS SHOWN OFF THE SHIMMERING CRAFT OF MR HARNICK'S LYRICS BOTH MEN AGREE THEY CHERISH THEIR PAST COLLABORATION BUT HAVE NO REGRETS THAT IT DID NOT CONTINUE MR HARNICK IS AT WORK WITH MICHEL LEGRAND ON AN ANIMATED FILM AND MR BOCK IS WORKING WITH PLAYWRIGHT JERRY STERNER ON A MUSICAL TENTATIVELY CALLED 1040 TO MUSICAL FANS A NEW WORK FROM THE TWO WOULD BE ON A PAR WITH A BEATLES REUNION BUT IT IS NOT LIKELY TO HAPPEN WE MUST CONTENT OURSELVES WITH SHE LOVES ME TAKING OUR CUE FROM ONE OF ITS SONG TITLES DAYS GONE BY MS WINER IS A FREELANCE WRITER AND A CONTRIBUTING EDITOR AT HARPER'S BAZAAR 9310060117 931006 INTERNATIONAL BANKERS IN RUSSIA SCURRY FOR DETAILS ON RUBLE ORDER SPECIAL TO THE WALL STREET JOURNAL MOSCOW BANKERS SCURRIED TO GET THE DETAILS OF A NEW RUSSIAN CENTRAL BANK ORDER MANDATING THE USE OF THE RUBLE FOR ALL CASH TRANSACTIONS THE CENTRAL BANK'S ORDER WAS ISSUED FRIDAY ACCORDING TO SERGEI SUKHININ HEAD OF THE CURRENCY REGULATION DEPARTMENT AT THE CENTRAL BANK OF RUSSIA BUT NEWS OF IT CAME OUT ONLY LTE MONDAY AND WAS OVERSHADOWED BY THE PARLIAMENT BATTLE UNDER THE RULE RUBLES WILL HAVE TO BE USED FOR ALL CASH TRANSACTIONS BEGINNING JAN 1 1994 ANY COMPANY ACCEPTING FOREIGN CURRENCY FOR GOODS OR SERVICES AFTER THAT DATE WON'T BE ABLE TO DEPOSIT THE CASH IN THEIR BANK ACCOUNTS BUT INSTEAD WILL HAVE TO TURN IT OVER TO THE GOVERNMENT MR SUKHININ SAID WITH THE RUBLE AS UNSTEADY AS IT IS IT HAS FALLEN TO NEARLY 1200 TO THE DOLLAR FROM 180 IN JANUARY OTHER CURRENCIES ARE COMMONLY USED IN RUSSIA'S MAJOR CITIES MANY MOSCOW STORES ACCEPT BOTH FOREIGN CURRENCIES AND RUBLES AND MOST CONTRACTS PARTICULARLY FOR REAL ESTATE ARE NEGOTIATED IN DOLLARS MR SUKHININ SAYS THE ORDER RESULTED FROM A LONGSTANDING OFFICIAL OPPOSITION TO THIS DOLLARIZATION OF THE RUSSIAN ECONOMY THE WIDE ACCEPTANCE OF DOLLARS IN RUSSIA HE SAYS LEADS TO A SURPLUS DEMAND FOR HARD CURRENCY AND DEPRESSES THE RUBLE RUSSIA'S RAMPANT INFLATION RECORDED AT 29 A MONTH IN AUGUST IS THE MAIN REASON RUSSIANS DON'T RELY ON THE RUBLE BANKERS SAY 9310060115 931006 BUSINESS BRIEF CARDINAL TECHNOLOGIES INC MICROSOFT COFOUNDER ALLEN PUTS 15 MILLION INTO STAKE CARDINAL TECHNOLOGIES INC A CLOSELY HELD MAKER OF MULTIMEDIA COMPUTER PRODUCTS SAID PAUL ALLEN INVESTED 15 MILLION TO TAKE AN UNSPECIFIED STAKE IN THE LANCASTER PA COMPANY CARDINAL FORMERLY A MAKER OF COMPUTER MODEMS IS BEST KNOWN FOR ACCESSORY CARDS THAT USE A TECHNOLOGY CALLED DIGITAL SIGNAL PROCESSING TO ACHIEVE HIGHQUALITY SOUND ON PERSONAL COMPUTERS MR ALLEN A MICROSOFT CORP COFOUNDER WHO LEFT THAT COMPANY IN 1983 HAS BEEN INVESTING IN A SERIES OF VENTURES IN MULTIMEDIA AND COMMUNICATIONS INCLUDING ASYMETRIX CORP INTERVAL RESEARCH CORP AMERICA ONLINE AND METRICOM INC IN PREPARED REMARKS MR ALLEN SAID HE WAS ATTRACTED TO CARDINAL BECAUSE OF ITS INEXPENSIVE HARDWARE AND RETAIL DISTRIBUTION CHANNELS 9310060114 931006 TECHNOLOGY AMD'S THIRDQUARTER PROFIT ROSE 25 BUT DISAPPOINTS ANALYSTS STOCK SINKS BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL ADVANCED MICRO DEVICES INC BADLY DISAPPOINTED WALL STREET WITH ITS THIRDQUARTER EARNINGS REPORT SPOOKING INVESTORS IN SEVERAL OTHER HIGHPROFILE SEMICONDUCTOR STOCKS AMD REPORTED PROFIT OF 613 MILLION OR 61 CENTS A SHARE UP 25 FROM 491 MILLION OR 51 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 17 TO 4184 MILLION FROM 3567 MILLION ANALYSTS HAD EXPECTED EARNINGS OF CLOSE TO 70 CENTS A SHARE THE NEWS CAUSED AMD'S STOCK TO SINK 475 OR NEARLY 18 TO 22 A SHARE ON THE NEW YORK STOCK EXCHANGE ABOUT 84 MILLION SHARES CHANGED HANDS MORE THAN EIGHT TIMES DAILY TRADING VOLUME WORRIES ABOUT IMPENDING PROBLEMS WITH SALES AND PROFITMARGINS SPREAD TO OTHER SEMICONDUCTOR STOCKS AFTER AN AMD CONFERENCE CALL WITH ANALYSTS MICRON TECHNOLOGY INC A MEMORYCHIP SPECIALIST TUMBLED 475 OR 87 TO 49875 A SHARE ON THE BIG BOARD AND TEXAS INSTRUMENTS INC LOST 4875 OR 65 TO 7050 INTEL CORP WAS OFF 275 OR 38 TO 70 IN NATIONAL OVERTHECOUNTER TRADING MOTOROLA INC FELL 2125 OR 21 TO 9875 ON THE BIG BOARD AMD BASED IN SUNNYVALE CALIF HAS BEEN ENGAGED IN A SEESAW BATTLE TO CHALLENGE INTEL'S STRANGLEHOLD ON THE MARKET FOR MICROPROCESSORS USED TO POWER PERSONAL COMPUTERS INTEL HAS ALLEGED IN SEVERAL LAWSUITS THAT AMD INFRINGED ITS COPYRIGHTS ON MICROPROCESSOR CODE AND IF INTEL PREVAILS IT WILL SEEK A HUGE DAMAGE AWARD AMD SHOWED SOME PROGRESS IN GAINING MARKET ACCEPTANCE FOR ITS NEW CLONE OF INTEL'S FLAGSHIP 486 CHIP SHIPPING 183000 COPIES IN THE THIRD QUARTER IT SAID IT REMAINS ON TRACK TO SELL 400000 IN THE FOURTH QUARTER BUT AMD'S PROFIT MARGINS ARE UNDER ATTACK ON SEVERAL FRONTS INTEL DISCLOSED LAST WEEK THAT IT'S SLASHING FOURTHQUARTER PRICES ON SEVERAL 486 MODELS BY 20 TO 29 COMPARED WITH CUSTOMARY PRICE DECLINES OF ABOUT 5 A QUARTER IN ADDITION AMD DISCLOSED THAT ITS SALES OF EARLIER 386 CHIPS DECLINED IN THE QUARTER TO 19 MILLION UNITS FROM MORE THAN TWO MILLION A COMPANY SPOKESMAN ALSO NOTED THAT INTEL'S AGGRESSIVE MOVES INTO THE MARKET FOR DATASTORAGE CHIPS CALLED FLASH MEMORIES COULD FURTHER HURT MARGINS ON THOSE PRODUCTS IN THE FOURTH QUARTER THEY DID DISAPPOINT SAID MEL PHELPS AN ANALYST AT HAMBRECHT & QUIST THE INGREDIENTS OF THAT SEEMED TO GET A LOT OF PEOPLE NERVOUS SOME ANALYSTS SAID INVESTORS HAD OVERREACTED IN PUNISHING OTHER SEMICONDUCTOR STOCKS WHICH MAY NOT SHARE AMD'S PROFIT CHALLENGES I THINK THIS IS SPECIFIC TO AMD AND NOT REFLECTIVE OF THE INDUSTRY SAID THOMAS THORNHILL AN ANALYST AT MONTGOMERY SECURITIES JERRY SANDERS AMD'S CHIEF EXECUTIVE OFFICER EMPHASIZED THE COMPANY'S YEARONYEAR SALES AND EARNINGS GROWTH AMD HAD ANOTHER OUTSTANDING QUARTER WITH OPERATING INCOME UP MORE THAN 50 COMPARED WITH LAST YEAR'S LIKE QUARTER HE SAID 9310060113 931006 LEISURE & ARTS BOOKSHELF RAGSTORICHES TALE OF A BOY GENIUS BY LEE LESCAZE BRILLIANT FICTIONAL CHARACTERS BECOME PART OF ONE'S LIFE I FEEL CLOSER TO HOLDEN CAULFIELD THAN TO ALMOST EVERYONE I REALLY WENT TO SCHOOL WITH ELIZABETH BENNET'S WIT LIVES MORE VIVIDLY IN MY MEMORY THAN THAT OF LAST NIGHT'S DINNER COMPANIONS AND NOT ONLY BECAUSE OF LAST NIGHT'S WINE AMERICANS OF A CERTAIN AGE CHECK FOR JAKE BARNES'S AND LADY BRETT'S REFLECTIONS IN THE GLASS OF PARIS CAFES A FEW MEMOIRS ACHIEVE THE SAME LITERARY CANDLEPOWER AND SWEEP READERS INTO A WRITER'S LIFE BONDING THEM FOREVER TO THE EXPERIENCE FREDERICK EXLEY'S A FAN'S NOTES IS SUCH A BOOK ROBERT GRAVES'S GOODBYE TO ALL THAT IS ANOTHER SO IS FRANK CONROY'S STOPTIME MR CONROY'S MEMOIR HAS FANS AS DEVOTED AS HOLDEN CAULFIELD'S WERE POLLSTERS TO ASK AMERICANS TO NAME THEIR FAVORITE AMERICAN BOOKS SINCE WORLD WAR II I SUSPECT STOPTIME WOULD BE OFTEN MENTIONED NOW MR CONROY HAS PUBLISHED HIS FIRST NOVEL BODY & SOUL HOUGHTON MIFFLIN 450 PAGES 2495 26 YEARS AFTER STOPTIME THE TWO BOOKS STAND AS A VIVID ILLUSTRATION OF THE DIFFERENT DEMANDS OF NONFICTION AND FICTION IN HIS MEMOIR MR CONROY GIVES US A CHARACTER HIMSELF SO COMPLEX SO CAUGHT UP IN THE WORLD SO SYMPATHETIC THAT WE FOLLOW HIS STORY AVIDLY IN BODY & SOUL MR CONROY HAS HUNG A LONGWINDED NOVEL ON A PROTAGONIST WHO FAILS TO CONVINCE A READER OF HIS REALITY THE FRANK OF STOPTIME IS A CHILD OF DIFFICULT OR ABSENT PARENTS GROWING UP IN HARD CIRCUMSTANCES SO IS CLAUDE RAWLINGS THE PROTAGONIST OF BODY & SOUL BUT IT IS THERE THAT THE RESEMBLANCE STOPS FRANK IS WONDERFUL AWARE OF EVERYTHING PAINED BY HIS FIRST BUMPS INTO THE WORLD STRONG IN HIS GODGIVEN PRIDE CLAUDE IS A CIPHER BY COMPARISON HIS LIFE IS THE EASIEST LEAST REFLECTEDUPON RISE FROM RAGS TO RICHES THAT I'VE COME ACROSS IN A LONG TIME HE IS BORN WITH EXTRAORDINARY MUSICAL TALENT CLAUDE IS A GENIUS AT THE PIANO AND HIS COMPOSITIONS ATTRACT MAJOR ATTENTION IN FACT CLAUDE IS EXTRAORDINARILY LUCKY FROM THE MOMENT HE WANDERS INTO THE THIRD AVENUE MUSIC STORE RUN BY AARON WEISFELD A REFUGEE WHO LOST HIS FAMILY TO THE NAZIS AARON AND HIS RELATIONSHIP TO THE BOY GENIUS ARE THE STRONGEST PARTS OF THE NOVEL OTHER INTERESTING PASSAGES REVOLVE AROUND MUSIC MR CONROY PLAYS THE PIANO AND HE CREDITS PETER SERKIN WITH HELPING HIM INTERPRET MUSIC AND PARTICULARLY THE MOZART DOUBLE PIANO CONCERTO IN EFLAT MAJOR WHICH CLAUDE PLAYS IN CONCERT WITH HIS TEACHER AS A WAY TO FASTSTART HIS CAREER THIS ISN'T A NOVEL TO RECOMMEND TO TALENTED ARTISTS WHO HAVE STRUGGLED TO BECOME SUCCESSFUL CLAUDE'S GOOD FORTUNE HIS LACK OF ENEMIES IN THE MUSIC BUSINESS HIS FREEDOM FROM PAINFUL CRITICISM ARE ENVIABLE CLAUDE IS THE LATCHKEY SON OF AN OBESE TAXIDRIVER MOTHER AND A LONGGONE FATHER BUT HE MANAGES WITHOUT GREAT TRAUMA TO BECOME THE STUDENT OF THE GREATEST PIANO MAESTROS OF THE TIME AND FOR RECREATION TO DRAW BEAUTIFUL AND RICH WOMEN INTO HIS BED DESPITE A CHILDHOOD THAT INCLUDES BEING LOCKED IN ALL DAY WITHOUT COMPANIONSHIP WHILE HIS MOTHER WORKS AS WELL AS PETTY THIEVERY AND SHINING SHOES ON THE STREETS CLAUDE VAULTS ALMOST UNTROUBLED INTO THE MANSIONS OF THE RICH AN ELITE BOYS SCHOOL THE WORLD OF CARNEGIE HALL HE NEVER EXPERIENCES THE ANXIETIES OF THE MUCH MORE BELIEVABLE FRANK OF STOPTIME WHAT'S MORE WHETHER CLAUDE IS LEARNING GRACIOUS TABLE MANNERS AT THE APARTMENT OF A WEALTHY MAESTRO BEING EDUCATED ABOUT HITLER STALIN AND MARX BY HIS MENTOR OR SWAPPING CLOTHES WITH A MYSTERIOUS ANDROGYNOUS WOMAN IN A BOX AT CARNEGIE HALL THE DIALOGUE CREAKS THE BOY IS WOODEN THEN AS IF MR CONROY HAD RECOGNIZED THAT THERE MUST BE A LOT OF TROUBLESOME MATERIAL BUILDING UP IN HIS HERO'S MIND HE SUDDENLY PLUNGES CLAUDE INTO A NERVOUS BREAKDOWN JUST AS HIS FUTURE SEEMED SECURE NOTHING IN THE NOVEL IS AS ARTIFICIAL AS THE CRACKUP'S START AND CLAUDE'S RECOVERY THE COLLAPSE IS PRECIPITATED BY HIS WISE MENTOR'S UNSURPRISING DEATH IN OLD AGE THE RECOVERY COMES AS SOON AS CLAUDE REALIZES AARON MADE HIM HIS HEIR HE EMERGES FROM AN EMOTIONAL PARALYSIS BORDERING ON THE CATATONIC ONE DAY TO FIGHT AGAINST PREDATORY LAND DEVELOPERS AND THEIR SINISTER AGENTS THE NEXT CLAUDE'S EFFORT TO SAVE HIS MENTOR'S MUSIC STORE IS TAKEN AS SUCH A SERIOUS STRUGGLE THAT AT MOMENTS LIKE THIS AND EARLIER WHEN CLAUDE'S MOTHER DABBLES IN COMMUNIST PARTY PROSELYTIZING IT SEEMS THAT A PROLETARIAN NOVELIST THEODORE DREISER PERHAPS IS IN SOME PART MR CONROY'S MUSE WHO WOULD HAVE THOUGHT THAT THE SHADE OF AMERICA'S MOSTADMIRED CREATOR OF PLODDING PROSE WOULD BE SEEN ON THIS OR ANY OTHER 1993 HORIZON YET BODY & SOUL RUNS THROUGH SUCH A HALL OF FAME LIST OF NOVELISTIC CLICHES THAT ONE SHOULDN'T BE SURPRISED BY ANYTHING THIS PLOT HAS CHILD MOLESTING A LONGLOST FATHER REVEALED TO THE READER BUT NOT THE CHILD MISCEGENATION STERILITY THE HAUGHTY BUT LOATHSOME RICH HOMOSEXUALITY AND SEXUAL ENCOUNTERS THAT CONTINUE FOR THREE NIGHTS AND TWO DAYS ALL THAT PLUS MOZART MR DREISER MEET DANIELLE STEEL 9310060112 931006 FIRM TO DEVELOP NEW TEST FOR ALZHEIMER'S DISEASE SOUTH SAN FRANCISCO CALIF ATHENA NEUROSCIENCE INC SAID IT ACQUIRED AN OPTION TO DEVELOP A NEW DIAGNOSTIC TEST FOR ALZHEIMER'S DISEASE THE DEGENERATIVE BRAIN DISORDER AFFECTING FOUR MILLION AMERICANS ATHENA A BIOTECHNOLOGY COMPANY DEVELOPING TREATMENTS AND DIAGNOSTICS FOR A VARIETY OF BRAIN DISORDERS SAID IT WILL SEEK TO DEVELOP A COMMERCIAL TEST BASED ON NEW RESEARCH FROM DUKE UNIVERSITY MEDICAL CENTER SCIENTISTS IN RECENT MONTHS THE DUKE SCIENTISTS HAVE FOUND THAT PEOPLE WHO INHERIT ONE FORM OF A COMMON BLOOD PROTEIN ARE AT ESPECIALLY HIGH RISK OF DEVELOPING ALZHEIMER'S DISEASE LATER IN LIFE ATHENA SAID IT BELIEVED A SIMPLE ACCURATE TEST FOR THE BLOOD PROTEIN WILL HELP PHYSICIANS IDENTIFY WHETHER A SENILE PATIENT IS SUFFERING FROM ALZHEIMER'S DISEASE AS REPORTED IN A PAGE ONE WALL STREET JOURNAL ARTICLE EARLIER THIS YEAR THE DUKE SCIENTISTS FOUND A CLOSE ASSOCIATION BETWEEN ONE FORM OF THE PROTEIN CALLED APOE4 AND THE DISEASE SCIENTISTS AT DUKE AND ELSEWHERE ARE SEEKING TO DETERMINE EXACTLY HOW THIS FORM OF THE PROTEIN IS LINKED WITH ALZHEIMER'S DISEASE ATHENA MEANWHILE IS SEEKING TO DEVELOP DIAGNOSTIC TESTS FOR ALZHEIMER'S DISEASE THAT WOULD INCLUDE THE PRESENCE OF APOE4 AS ONE OF SEVERAL MARKERS FOR THE DISEASE 9310060110 931006 WORLD MARKETS STOCKS ACROSS EUROPE CLIMB BROADLY AS CALMING IN RUSSIA ALLOWS OTHER BULLISH FACTORS INTO PLAY A WALL STREET JOURNAL ROUNDUP EUROPEAN SHARE PRICES SCORED BIG GAINS YESTERDAY AS BULLISH MARKET FACTORS PILED UP FOLLOWING THE RESTORATION OF POLITICAL CALM IN RUSSIA LONDON SHARES' MOMEMTUM SPILLED OVER FROM THE PREVIOUS SESSION AND TRADING IN THE FUTURES PIT BUOYED EQUITY PRICES FRANKFURT STOCKS SURGED TO NEW HIGHS AFTER THE VIOLENT POLITICAL CLASH IN MOSCOW WAS PUT DOWN BY PRESIDENT BORIS YELTSIN LATE MONDAY TOKYO STOCK PRICES ENDED WITH MODERATE GAINS TUESDAY BUT THE RESOLUTION OF THE RUSSIAN ARMED CONFLICT DID LITTLE TO PRY INVESTORS FROM THE SIDELINES IN JAPAN WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11226 UP 032 REFLECTING HIGHER ASIA/PACIFIC AND EUROPEAN MARKETS AND LOWER MARKETS IN THE AMERICAS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14737 UP 332 OR 23 WITH INDUSTRIAL OXYGEN OF MALAYSIA POSTING A 63 GAIN IN ITS LOCAL CURRENCY SEMICONDUCTOR STOCKS TRAILED AT 20726 DOWN 681 OR 32 WITH ADVANCED MICRO DEVICES OF THE US SLIDING 17 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 175 POINTS TO 30852 THE FT 30STOCK INDEX GAINED 133 POINTS TO 23458 VOLUME WAS 7743 MILLION SHARES UP SHARPLY FROM 5523 MILLION SHARES A DAY EARLIER THE 100STOCK INDEX'S STRENGTH RESULTED MAINLY FROM FOLLOWTHROUGH BUYING AFTER MONDAY'S 284POINT GAIN WHICH STEMMED FROM HOPES THAT BRITAIN'S CONSERVATIVE PARTY WILL LOWER INTEREST RATES DURING THIS WEEK'S PARTY CONFERENCE BUT ALL ANALYSTS WEREN'T OPTIMISTIC LOWERING RATES FOR POPULARITY PURPOSES COULD BACKFIRE ON THE TORIES IF IT LED TO HIGHER INFLATION FOOD RETAILERS AND BREWERS LED THE LONDON MARKET UP AS INVESTORS WHO WANTED TO STAY IN THE SWIM SWITCHED INTO NONCYCLICAL SAFE STOCKS WHICH DON'T NECESSARILY HAVE BIG PROFITS BUT WHICH OFFER FUNDAMENTALLY GOOD VALUES AT CURRENT PRICES IN FRANKFURT THE DAX 30STOCK INDEX SOARED 4901 POINTS OR 26 TO A RECORD 197273 SURPASSING THE PREVIOUS CLOSING HIGH OF 196855 SET MARCH 30 1990 THE INDEX ALSO HIT A NEW TRADING HIGH OF 198275 OF THE DAX ISSUES 28 ROSE AND 2 FELL THE JUMP IN SHARE PRICES INITIALLY FUELED BY DAX FUTURES' PERFORMANCE A DAY EARLIER CAME AS TRADERS JUMPED ON THE BANDWAGON AND SOME COVERED SHORT POSITIONS BUYING STOCKS TO REPLACE SHARES BORROWED IN HOPES OF PROFITING BY A DECLINE IN PRICE US INSTITUTIONAL INVESTORS ALSO TURNED THEIR ATTENTION BACK TO GERMAN SHARES HELPED FURTHER BY HIGHER BOND PRICES WHICH HIT NEW HIGHS AT MIDDAY AND THE MARKET WAS UNDERPINNED BY BULLISH CORPORATE NEWS SUCH AS ACQUISITIONS AND STOCK ISSUES IN THE US DAIMLERBENZ JUMPED 16 MARKS OR 21 TO 760 MARKS 46816 UNDERPERFORMING THE GERMAN MARKET ON THE COMPANY'S FIRST DAY OF TRADING WITH A LISTING IN THE US IN PARIS STOCKS RAN UP 14 MAKING THIS YEAR'S RISE 162 THE RALLY STEMMED FROM GAINS ON OTHER EUROPEAN STOCK EXCHANGES THE CALMING OF THE CRISIS MOOD IN RUSSIA AND PRIVATIZATION FERVOR IN FRANCE AS WELL AS GAINS ON WALL STREET AND IN THE FRENCH BOND MARKET INSTITUTIONAL INVESTORS PURCHASED BLUE CHIPS BROADLY WITH US OPERATORS SNAPPING UP COMPANIES THAT HAVE STRONG INTERESTS IN NORTH AMERICA IN AMSTERDAM SHARES GOT A LIFT FROM STOCKMARKET STRENGTH ABROAD AND EASED ANXIETY ABOUT RUSSIAN POLITICAL UNREST MOST SECTORS SHOWED STRENGTH EXCEPT FOR SOME DOLLARSENSITIVE ISSUES THAT WERE HURT BY SOFTNESS IN THE VALUE OF THE US CURRENCY IN MILAN PRICES ROSE BUOYED BY THE ITALIAN AUTO SECTOR EXPECTATIONS OF AN EASING IN INTEREST RATES AND THE EUROPEAN BANDWAGON EFFECT THE BROAD OPTIMISM ALSO LED TO A SURGE IN MADRID STOCKS IN STOCKHOLM EQUITIES JUMPED IN HEAVY TRADING BACKED BY ENTHUSIASM IN EUROPEAN EQUITY MARKETS AND DECLINING SWEDISH BOND AND MONEY MARKET RATES THE TELECOMMUNICATIONS ARENA LED THE ACTIVE LIST AND INVESTMENT GROUPS WERE THE DAY'S WINNERS FOLLOWING A GOVERNMENT PROPOSAL TO ABOLISH DOUBLE TAXATION OF DIVIDENDS AND CUT THE TAX RATE ON CAPITAL GAINS IN ZURICH SHARES CLIMBED SHARPLY THOUGH THE RISE WAS EXAGGERATED BY EXTREMELY THIN DEALINGS THE MARKET WAS BOOSTED BY A DROP IN INTEREST RATES EUROPEAN EXCHANGES' STRONG SHOWINGS AND THE RELATIVE CALM IN RUSSIA WHICH UNLEASHED PENTUP BUYING INTEREST AMONG SWISS INVESTORS IN BRUSSELS STOCKS RALLIED 13 ALSO BOLSTERED BY EUROPEAN BOURSES' GAINS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 1870 POINTS MONDAY ROSE 5750 TO 2032193 ON WEDNESDAY THE NIKKEI ROSE 8251 POINTS TO CLOSE THE MORNING SESSION AT 2040444 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A SPARSE 220 MILLION SHARES UP FROM 1831 MILLION SHARES A DAY EARLIER GAINERS TOPPED LOSERS 550440 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SLIPPED 006 POINT MONDAY INCHED UP 090 TO 163493 THE NIKKEI'S INTRADAY HIGH OF 2041004 WAS HIT IN THE FIRST 15 MINUTES OF TRADING WHILE THE SESSION'S LOW OF 2023782 CAME ABOUT 10 MINUTES BEFORE THE CLOSE SIGNALING INDEX MANIPULATION AS TUESDAY'S ACTIVITY WAS LED BY DEALERS THIS KIND OF TRADING IS AIMED AT BRIGHTENING SENTIMENT AMONG GENERAL INVESTORS WHICH DRUMS UP BUSINESS AND COMMISSIONS SHARE PRICES SPENT THE BULK OF THE SESSION LITTLE CHANGED DESPITE THE VICTORY BY RUSSIAN REFORMERS MHOSE TO STAY OUT OF THE MARKET AND THOSE WHO CAME IN FACED SELLING PRESSURE THROUGHOUT THE SESSION FROM INDIVIDUAL INVESTORS WITH MARGIN LOANS COMING DUE THESE INDIVIDUALS BORROWED MONEY TO BUY SHARES DURING APRIL'S BULL RUN BUT MANY OF THESE SHARES REMAIN BELOW LEVELS OF SIX MONTHS AGO MAKING FOR INVESTMENT LOSSES AND HURTING SENTIMENT AND THESE STOCKS WERE TARGETED BY DEALERS GAINERS IN THE EXPORTORIENTED ELECTRONICS AND AUTO SECTORS DOMINATED THE SLIM VOLUME ROSTER WITH BUYING LED BY FOREIGN INVESTORS ON HOPES THE JAPANESE YEN WILL SOON FALL IN CURRENCY DEALINGS EASING PRESSURE ON OVERSEAS RETURNS IN SYDNEY STOCKS RALLIED 1 TO CLOSE AT A SIXYEAR HIGH LED BY INDUSTRIAL ISSUES ESPECIALLY THOSE WITH LARGE CAPITALIZATIONS THOUGH ANALYSTS COULDN'T CITE ANY FUNDAMENTAL REASONS FOR THE BIG GAINS IN HONG KONG SHARES SURGED 16 TO SET NEW HIGHS FOR INTRADAY AND CLOSING LEVELS WITH STRONG BUYING CONTINUING FROM OVERSEAS PARTICULARLY US INSTITUTIONAL INVESTORS THE CLIMB CAME AHEAD OF HONG KONG GOV CHRIS PATTEN'S SECOND ANNUAL POLICY SPEECH TO THE LEGISLATURE WEDNESDAY AND THE MARKET EXPECTED HIM TO URGE CHINA TO HELP BRITAIN END A YEARLONG DISPUTE ABOUT HOW HONG KONG SHOULD CONDUCT ITS 1995 LEGISLATIVE ELECTIONS IN SINGAPORE SHARES ROSE AFTER UNINSPIRED DEALINGS GAVE WAY TO SHARP GAINS ON FRESH BUYING BY OVERSEAS INVESTORS IN MANILA FOLLOWING MONDAY'S STEEP FALL SHARES RALLIED IN ACTIVE TRADING HELPED BY BARGAINHUNTING IN BANGKOK EQUITIES SOARED 2 IN ACTIVE TRADING WITH BLUECHIP STOCKS REGISTERING LARGE ADVANCES 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 9310060109 931006 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 2 15/16 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 59 DAYS 310 60 TO 95 DAYS 317 96 TO 119 DAYS 320 120 TO 239 DAYS 325 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 316 60 DAYS 326 90 DAYS CERTIFICATES OF DEPOSIT 251 ONE MONTH 255 TWO MONTHS 263 THREE MONTHS 272 SIX MONTHS 284 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 305 30 DAYS 305 60 DAYS 315 90 DAYS 315 120 DAYS 316 150 DAYS 316 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 3/8 THREE MONTHS 3 3/8 SIX MONTHS 3 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 3375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY OCTOBER 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 663 60 DAYS 671 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 661 60 DAYS 671 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 485 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 268 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9310060107 931006 GE ENDS PLAN TO BUY CHRYSLER BOXCARS BOWING TO FEDERAL ANTITRUST CONCERNS BY AMAL KUMAR NAJ AND DANIEL MACHALABA STAFF REPORTERS OF THE WALL STREET JOURNAL GENERAL ELECTRIC CO BOWING TO PRESSURE FROM FEDERAL REGULATORS BACKED AWAY FROM BUYING CHRYSLER CORP'S FLEET OF RAILROAD BOXCARS HAD GE'S PLAN TO BUY THE AUTO MAKER'S FLEET OF 4000 BOXCARS BEEN FULFILLED IT WOULD HAVE GIVEN GE VIRTUAL CONTROL OF THE LEASING MARKET FOR A SUBSET OF RAIL CARS THAT ARE OF PARTICULAR VALUE TO CERTAIN RAILROADS BECAUSE THE CARS HAVE A SPECIAL GRANDFATHERED EXEMPTION FROM FEDERAL RATEREDUCTION ORDERS RAILCAR LEASING IS JUST ONE OF GE'S MANY BUSINESSES WHICH RANGE FROM JET ENGINES AND MEDICAL EQUIPMENT TO CONSUMER PRODUCTS AND BROADCASTING GE ANNOUNCED ITS DECISION AFTER THE MARKETS CLOSED IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE GE CLOSED AT 95625 DOWN 625 CENTS CHRYSLER ALSO ON THE BIG BOARD CLOSED AT 4950 UP 625 CENTS GE'S WITHDRAWAL IS LIKELY TO REOPEN COMPETITIVE BIDDING FOR THE CARS WHEN CHRYSLER WHICH IS BASED IN HIGHLAND PARK MICH PUT UP THE CARS FOR PURCHASE GE BASED IN FAIRFIELD CONN WAS ONE OF THREE CONTENDING BIDDERS YESTERDAY AT LEAST ONE OF THE ORIGINAL BIDDERS RAILROAD FINANCIAL CORP CHICAGO SAID IT WAS STILL INTERESTED IN THE BOXCARS AND WAS LOOKING FORWARD TO HAVING AN OPPORTUNITY TO ACQUIRE THEM FOR OUR RAILROAD CLIENTS FOR ITS PART CHRYSLER'S FINANCIAL UNIT WHICH OWNS THE BOXCAR FLEET SAID IT STILL PLANS TO GET OUT OF ITS NONAUTOMOTIVE BUSINESSES AS FAR AS REOPENING THE BIDDING THAT HASN'T BEEN DECIDED YET SAID JACK FERRY A SPOKESMAN FOR CHRYSLER FINANCIAL CORP WE ARE LOOKING TO DISPOSE OF THOSE CARS IN THE FUTURE IN WITHDRAWING FROM THE PURCHASES GE SAID IT PLANNED INSTEAD TO BUY AN ASSORTMENT OF RAIL FREIGHT CARS FROM CHRYSLER INCLUDING A LIMITED NUMBER OF BOXCARS THAT AREN'T COVERED BY THE GRANDFATHERED RATE EXEMPTION GE DIDN'T DISCLOSE THE NUMBER OF CARS IT WOULD BUY FROM CHRYSLER OR HOW MUCH IT WOULD PAY BUT A FEDERAL TRADE COMMISSION OFFICIAL SAID THE NUMBER IS LESS THAN 300 CARS THE FTC OFFICIAL DIDN'T KNOW WHAT THE PRICE WOULD BE WE HAVE DECIDED UPON THIS RESTRUCTURING IN LIGHT OF THE CONCERNS EXPRESSED BY SEVERAL OF OUR CUSTOMERS OTHER INDUSTRY PARTICIPANTS AND THE OPPOSITION OF THE FEDERAL TRADE COMMISSION SAID ROBERT SPEETZEN PRESIDENT OF RAILCAR SERVICES A UNIT OF GE CAPITAL WHICH INCLUDES GE'S RAILCAR LEASING BUSINESS THE FTC WHICH OPPOSED GE'S PLANNED PURCHASE SAID THE EXCLUSION OF THE GRANDFATHERED BOXCARS FROM THE RESTRUCTURED AGREEMENT HAS REMOVED ITS ANTITRUST OBJECTIONS OUR CONCERN WAS ONLY THE BOXCARS THAT ARE GRANDFATHERED AND TREATED SPECIALLY IN RATE NEGOTIATIONS SAID STEVE NEWBORN DIRECTOR OF LITIGATION AT THE FTC'S BUREAU OF COMPETITION MR NEWBORN TERMED GE'S RESTRUCTURED AGREEMENT A FACESAVING MANEUVER BY THE COMPANY IT'S AN END OF THE DEAL NO MATTER HOW THEY CHARACTERIZE IT HE SAID THE FTC LAST WEEK THREATENED TO SEEK A TEMPORARY COURT ORDER TO BLOCK GE'S ACQUISITION OF THE CARS WHICH CHRYSLER CURRENTLY LEASES TO RAILROADS THE AGENCY SAID THAT IN SEEKING THE COURT ORDER IT WOULD ARGUE THAT THE TRANSACTION WOULD SIGNIFICANTLY DECREASE COMPETITION IN THE US AND CANADIAN BOXCAROPERATING LEASE MARKET SOME RAILROADERS HAD ESTIMATED THAT GE'S ACQUISITION WOULD HAVE GIVEN THE BIG CONGLOMERATE 90 OF THE SPECIAL BOXCARS CURRENTLY IN OPERATION GE WHICH HAS BEEN AGGRESSIVELY EXPANDING ITS FLEET OF ALL TYPES OF RAIL CARS IN RECENT YEARS HADN'T DISCLOSED THE AMOUNT OF ITS WINNING BID BUT INDUSTRY EXECUTIVES SAID IT WAS ABOUT 60 MILLION MR NEWBORN THE FTC OFFICIAL SAID THE AGENCY BELIEVED THAT GE'S ACQUISITION WOULD HAVE ENABLED THE COMPANY TO RAISE PRICES TO ITS RAILROADS AND THAT SOME OF THE INCREASES WOULD HAVE BEEN PASSED ON TO RAILROAD CUSTOMERS AND THE RAILROADS WOULD HAVE HAD TO EAT THE REST GE'S DECISION BROUGHT A SIGH OF RELIEF FROM SOME RAILROADS THAT HAD BEEN THE MOST CONCERNED ABOUT THE CONSEQUENCES OF THE ACQUISITION AND HAD LOBBIED HARD AGAINST IT IT'S HEALTHY FOR THE RAILROAD INDUSTRY TO HAVE MULTIPLE SOURCES FOR LEASED CARS SAID FRED SIMPSON EXECUTIVE VICE PRESIDENT OF MONTANA RAIL LINK INC A REGIONAL RAILROAD IN MISSOULA MONT WE ARE HOPING IT WILL KEEP RATES DOWN HE SAID 9310060106 931006 INTERNATIONAL YELTSIN MOVES QUICKLY TO TIGHTEN GRIP BY CENSORING MEDIA AND REMOVING FOES RUSSIAN REGIONAL LEADERS WHO DEFIED PRESIDENT ARE PARTICULAR TARGETS BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THERE WERE SOME UNUSUAL BLANK SPACES IN TUESDAY'S EDITION OF NEZAVISIMAYA GAZETA ONE OF RUSSIA'S LEADING INDEPENDENT DAILIES ARTICLES COMMENTING ON REGIONAL OPPOSITION TO PRESIDENT BORIS YELTSIN HAD BEEN DELETED LEAVING AWKWARD AND UNEXPLAINED GAPS THEY HAD BEEN EXCISED BY A NEW STATE CENSORSHIP DEPARTMENT A THROWBACK TO THE DAYS OF COMMUNIST CONTROL THE CENSORSHIP IS ONLY THE LATEST MOVE IN MR YELTSIN'S ONSLAUGHT AGAINST REAL OR PERCEIVED OPPOSITION TO HIS RULE HAVING CRUSHED HIS OPPONENTS IN PARLIAMENT THE PRESIDENT NOW IS TRYING TO ATTAIN UNCHALLENGED ONEMAN RULE AT LEAST UNTIL ELECTIONS ARE HELD AT SOME POINT IN THE FUTURE MR YELTSIN IS CONCENTRATING HIS FIREPOWER ON REGIONAL GOVERNMENTS THAT POTENTIALLY COULD TRIP UP HIS AMBITIONS RATHER THAN WAITING FOR PROVINCIAL LEADERS TO PLAY THEIR HANDS MR YELTSIN IS BARRELING FORWARD ISSUING DECREES TO REMOVE LEADERS AND INSTITUTIONS HE DOESN'T LIKE ONE OF MR YELTSIN'S TOP ADVISERS NIKOLAI MEDVEDEV ISSUED A STARK WARNING TO THE REGIONAL COUNCILS THAT ARE RUSSIA'S BASIC LAWMAKING BODIES THESE COUNCILS HAVE FREQUENTLY BEEN AT LOGGERHEADS WITH MR YELTSIN AND HIS LOCAL APPOINTED REPRESENTATIVES MORE THAN HALF OPPOSED THE PRESIDENT'S CONTROVERSIAL DECREE OF SEPT 21 DISSOLVING THE RUSSIAN PARLIAMENT SPEAKING TO RUSSIA'S OFFICIAL ITARTASS NEWS AGENCY MR MEDVEDEV SAID THE GOVERNMENT WAS PREPARING POLITICAL SANCTIONS TO SUSPEND MANY OF THESE COUNCILS AND HOLD NEW ELECTIONS HE LISTED EIGHT COUNCILS THAT WERE CANDIDATES FOR DISMISSAL INCLUDING THOSE IN CHELYABINSK NOVOSIBIRSK KEMEROVO AND BRYANSK AFTER STORMING PARLIAMENT THIS WOULD SEEM TO BE A LOGICAL STEP FORWARD IN YELTSIN'S DEVELOPMENT SAYS VIKTOR KREMENYUK DEPUTY DIRECTOR OF A THINK TANK ON INTERNATIONAL AFFAIRS HE EXPECTS THAT ALL OF THE COUNCILS WILL BE DISMISSED SURE THEY WERE ELECTED FREELY AND FAIRLY BUT THAT NEVER STOPPED ANYONE THERE IS PLENTY AT STAKE RUSSIA'S FARFLUNG REGIONS COULD POTENTIALLY WREAK HAVOC ON MR YELTSIN'S PLANS TO SET UP A SMOOTHLY FUNCTIONING POLITICAL SYSTEM WEALTHIER REPUBLICS ARE THREATENING TO REMIT LESS TAX REVENUE TO THE CENTRAL GOVERNMENT THAT WOULD LEAVE MOSCOW WITH LESS IN ITS COFFERS TO AID POORER REPUBLICS THOSE DISPARITIES WOULD PULL AT THE ALREADY FRAGILE STRINGS THAT KEEP THE RUSSIAN FEDERATION TOGETHER DURING RUSSIA'S TWO WEEKS OF POLITICAL CRISIS A NUMBER OF REGIONS THREATENED TOUGH NEW MEASURES TO OPPOSE MOSCOW AND MR YELTSIN IN SIBERIA REGIONAL LEADERS THREATENED TO BLOCK THE TRANSSIBERIAN RAILWAY AND WITHHOLD THE SHIPMENT OF NATURAL RESOURCES TO MOSCOW MANY OTHERS REFUSED TO CARRY OUT MR YELTSIN'S LATEST DECREES THE FIRST VICTIMS OF MR YELTSIN'S NEW MEASURES ARE THE LAWMAKING BODIES CLOSEST TO THE KREMLIN MR YELTSIN ANNOUNCED YESTERDAY THAT THE ELECTED CITYWIDE MOSCOW COUNCIL WAS BEING SUSPENDED HE ALSO SHUT DOWN THE CITY'S NETWORK OF ELECTED DISTRICT COUNCILS THOSE OFFICES ARE ALREADY LOCKED UP AND PHONE CALLS WENT UNANSWERED THE MOVES AGAINST REGIONAL COUNCILS ARE PART OF WHAT MR YELTSIN SAYS IS AN ATTEMPT TO BRING REAL DEMOCRACY TO RUSSIA BY DISSOLVING PARLIAMENT MR YELTSIN IS ASKING THE NATION TO TRUST HIM TO USE THIS PERIOD OF ONEMAN RULE TO PUT INTO PLACE DURABLE DEMOCRATIC INSTITUTIONS ACCORDING TO MR YELTSIN'S TIMETABLE RUSSIA WILL ELECT A NEW LEGISLATURE IN DECEMBER AFTERWARD A SPECIAL COUNCIL HEADED BY THE PRESIDENT WILL PUT THE FINISHING TOUCHES ON A NEW CONSTITUTION IN JUNE RUSSIA WOULD HOLD NEW PRESIDENTIAL ELECTIONS MANY INTELLECTUALS IN MOSCOW WHO HAVE BEEN AMONG MR YELTSIN'S KEY SUPPORTERS ARE WONDERING IF THE PRESIDENT IS SINCERE IN HIS PLAN TO EVENTUALLY CREATE A FUNCTIONING DEMOCRACY THERE IS A SIGNIFICANT CHANCE OF DICTATORSHIP IN THIS COUNTRY SAYS MR KREMENYUK YELTSIN WILL SHAPE THE POLITICAL SITUATION AS HE LIKES MR YELTSIN SEEMS TO BE SEIZING HIS POLITICAL OPPORTUNITY AS QUICKLY AND AS FIRMLY AS POSSIBLE SOMETHING HE HAS BEEN ACCUSED OF FAILING TO MR YELTSIN'S ALLIES HAVE ARGUED THAT HE SHOULD HAVE TAKEN STEPS AS DETERMINED AS THESE AGAINST HIS ENEMIES ON AT LEAST TWO EARLIER OCCASIONS AFTER HE HELPED DEFEAT THE COUP ATTEMPT OF 1991 AND AFTER HE WON A NATIONAL VOTE OF CONFIDENCE IN A REFERENDUM LAST APRIL MR YELTSIN ALREADY HAS SUSPENDED SEVERAL OPPOSITION NEWSPAPERS AND DISSOLVED A NUMBER OF POLITICAL ORGANIZATIONS THAT OPPOSE HIM IVAN FEDOSEYEV A PEOPLE'S DEPUTY FROM THE FAR EASTERN REGION OF IRKUTSK WAS HOLED UP IN PARLIAMENT UNTIL THE TANKS BEGAN MOVING TOWARD THE BUILDING ON MONDAY MORNING STILL DAZED AFTER SEEING THE WHITE HOUSE SHELLED HE HAS TAKEN REFUGE IN THE EDITORIAL OFFICES OF THE JUSTSUSPENDED OPPOSITION NEWSPAPER PRAVDA MR FEDOSEYEV BELIEVES MR YELTSIN'S REAL TARGET WASN'T PARLIAMENT WHICH HAD ALREADY BEEN WIDELY DISCREDITED BUT OPPONENTS IN THE REGIONS IT WAS ALL DONE TO SUPPRESS THE CENTERS OF RESISTANCE IN THE REGIONS SAID MR FEDOSEYEV SITTING BENEATH A BUST OF LENIN THE CRUELTY WAS A DETERRENT THEY WANTED TO SHOW THAT THEY'RE READY FOR ANYTHING INDEED FOLLOWING THE LETHAL ASSAULT IT ISN'T CLEAR THAT MR YELTSIN NEEDS TO ISSUE ADDITIONAL VERBAL THREATS HAVING BROUGHT THE ARMY TO HIS SIDE AND WITH NO VISIBLE SIGNS OF A SPLIT IN THE ARMED FORCES MR YELTSIN'S NEWFOUND STRENGTH SEEMS WIDELY ACKNOWLEDGED ON TUESDAY LEADERS OF SOME OF THE REGIONS THAT HAD BEEN MOST CRITICAL OF MR YELTSIN SUDDENLY WERE SINGING A MORE CONCILIATORY TUNE IN NOVOSIBIRSK AN INDUSTRIAL REGION THAT HAS BEEN A FOCUS OF ANTIYELTSIN SENTIMENT LOCAL LEADERS ALREADY ARE INCHING OVER TO MR YELTSIN'S SIDE THE REGION'S GOVERNOR VITALY MUKHA HAS BEEN AMONG THE MOST VIRULENT OPPONENTS OF THE PRESIDENT EARLIER THIS YEAR MR MUKHA TRIED TO SUSPEND THE PUBLIC AUCTION OF SHARES IN STATE ENTERPRISES LAST WEEK HE WAS AMONG THOSE CALLING FOR THE CREATION OF A BREAKAWAY SEMIINDEPENDENT SIBERIAN REPUBLIC AFTER THE MILITARY ASSAULT IN MOSCOW MR MUKHA SUDDENLY CHECKED INTO A HOSPITAL APPARENTLY TO WATCH DEVELOPMENTS UNFOLD ON HIS WAY TO THE HOSPITAL HE GAVE A QUICK INTERVIEW TO A LOCAL TELEVISION STATION DROPPING HIS EARLIER DEFIANCE TO MR YELTSIN'S SEPT 21 DECREE DISSOLVING PARLIAMENT MR MUKHA SUDDENLY PORTRAYED HIMSELF AS A LOYAL SOLDIER FOR THE PRESIDENT THE ADMINISTRATION HAS ALWAYS FOLLOWED ORDERS OF THE GOVERNMENT AND WILL KEEP DOING SO HE SAID BUT HIS CHANGE OF HEART CAME TOO LATE SHORTLY THEREAFTER MR YELTSIN ISSUED A DECREE REMOVING MR MUKHA FROM POWER 9310060105 931006 PEPPERAND SALT THOUGH OF COURSE THAT'S VERY TRUE REMAINS A HOPE ETERNAL I'M PUBLISHED IN THE JOURNAL HOW MUCH MONEY WAS SPENT FINDING THIS SO TRAGIC DENOUEMENT DREAD END 9310060104 931006 INTERNATIONAL WESTERN GERMAN CONSTRUCTION FRANKFURT CONSTRUCTION ORDERS IN WESTERN GERMANY WERE DOWN A REAL 31 IN THE FIRST HALF OF 1993 FROM A YEAR EARLIER THE CONSTRUCTION INDUSTRY TRADE ASSOCIATION HDB REPORTED THE ORDER BACKLOG IN JULY COVERED THREE MONTHS COMPARED WITH 31 MONTHS FOR JULY 1992 THE ASSOCIATION SAID CONSTRUCTION HAS BEEN SEEN AS A RELATIVELY SECURE SECTOR IN THE COUNTRY'S RECESSIONBOUND ECONOMY PARTICULARLY BECAUSE OF THE SEVERE HOUSING CRUNCH THROUGHOUT GERMANY IN WESTERN GERMANY HOUSING CONSTRUCTION ORDERS IN THE FIRST HALF WERE UP A REAL 105 WITH THE BIGGEST INCREASE IN MULTIFAMILY DWELLINGS THE ASSOCIATION SAID 9310060103 931006 MARKETING & MEDIA DOW JONES WILL OFFER ELECTRONIC PUBLICATION FOR 24HOUR NEWS A WALL STREET JOURNAL ROUNDUP DOW JONES & CO SAID BEGINNING IN 1994 IT WILL OFFER PERSONAL JOURNAL AN ELECTRONIC PUBLICATION PROVIDING BUSINESS AND FINANCIAL MARKET NEWS STOCK QUOTATIONS SPORTS AND WEATHER 24 HOURS A DAY THE ANNOUNCEMENT CAME A DAY AFTER MOTOROLA INC SAID IT PLANS TO JOIN REUTERS AMERICA INC IN PROVIDING A WIRELESS FINANCIALNEWS SERVICE TO BE DELIVERED OVER MOTOROLA'S EMBARC WIRELESS MESSAGING NETWORK THE DOW JONES SERVICE WILL INCLUDE MAJOR NEWS STORIES FROM EACH MORNING'S EDITION OF THE WALL STREET JOURNAL AS WELL AS UPDATES THROUGHOUT THE DAY THE PUBLICATION WILL BE FIRST MADE AVAILABLE ON HANDHELD DEVICES USING THE MICROSOFT AT WORK SOFTWARE OF MICROSOFT CORP THE SERVICE IS AIMED AT FREQUENT TRAVELERS AND MOBILE BUSINESS PROFESSIONALS WHO WILL BE ABLE TO RECEIVE THE UPDATED MATERIAL THROUGH A TOLLFREE TELEPHONE CALL THE PRODUCT IS PART OF DOW JONES BUSINESS INFORMATION SERVICES A GROUP WITHIN THE ELECTRONIC PUBLISHING SEGMENT OF DOW JONES WHICH ALSO PUBLISHES THE WALL STREET JOURNAL AND ITS INTERNATIONAL EDITIONS BARRON'S MAGAZINE AND THE OTTAWAY GROUP OF COMMUNITY NEWSPAPERS MOTOROLA BASED IN SCHAUMBURG ILL SAID ITS SERVICE EMBARC/REUTERS FINANCIAL NEWS UPDATES WILL BE DELIVERED HOURLY EACH BUSINESS DAY IT WILL PROVIDE BUSINESS AND FINANCIAL NEWS AND GENERAL NEWS HEADLINES GATHERED BY REUTERS MOTOROLA SAID EMBARC CURRENTLY DELIVERS WIRELESS ELECTRONIC MAIL AND OTHER DATA TO PALMSIZE RECEIVERS THROUGH WHICH THE DATA CAN BE DOWNLOADED TO PERSONAL COMPUTERS THE NETWORK SERVES ABOUT 220 METROPOLITAN AREAS IN THE US AND CANADA REUTERS AMERICA IS A UNIT OF BRITAIN'S REUTERS HOLDINGS PLC 9310060102 931006 KAMAN SUBSIDIARY PAYS FINES BLOOMFIELD CONN KAMAN CORP SAID ONE OF ITS SUBSIDIARIES HAS AGREED TO PAY 265000 IN FINES TO THE US GOVERNMENT FOR FAILING TO DISCLOSE UPTODATE PRICING DATA IN A NAVY CONTRACT KAMAN A DEFENSE COMMERCIAL AND INDUSTRIAL CONCERN SAID ITS SUBSIDIARY RAYMOND ENGINEERING INC BASED IN NEW HAVEN WAS CONTRACTED TO MANUFACTURE PARTS FOR THE NAVY EA6B PROWLER AIRCRAFT IN THE MID1980S THE COMPANY WAS ALLEGED TO HAVE OFFERED OUTOFDATE PRICING INFORMATION IN THAT CONTRACT THE SUBSIDIARY DENIES WRONGDOING OR ANY LIABILITY IN THE SETTLEMENT SAID A KAMAN SPOKESMAN 9310060101 931006 TECHNOLOGY AT&T FOLDS ITS MAGAZINE OVER DRAWING CONTROVERSY NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO CLOSED ITS EMPLOYEE MAGAZINE AMID MOUNTING CHARGES OF RACIAL INSENSITIVITY AFTER PUBLISHING A DRAWING THAT USED A MONKEY TO DEPICT AFRICANS AT&T SAID IT REASSIGNED THE MAGAZINE'S EXECUTIVE AND MANAGING EDITORS AND FIRED THE OUTSIDE DESIGN FIRM THAT PROVIDED THE DRAWING THE PICTURE APPEARED IN THE SEPTEMBER ISSUE OF FOCUS WHICH IS DISTRIBUTED TO 315000 AT&T EMPLOYEES WORLDWIDE THE MOVE TO CLOSE THE MAGAZINE CAME AS JESSE JACKSON LED 200 DEMONSTRATORS IN FRONT OF AT&T'S MANHATTAN HEADQUARTERS YESTERDAY TO PROTEST THE INCIDENT AN AT&T SPOKESMAN SAID THE COMPANY HAS RECEIVED COMPLAINTS FROM ITS OWN WORKERS ABOUT THE DRAWING AT&T HAS REDOUBLED ITS EFFORTS TO MAKE WORKERS MORE SENSITIVE TO RACIAL AND GENDER ISSUES THE SPOKESMAN SAID EARLIER THIS WEEK AT&T CHAIRMAN ROBERT E ALLEN SENT A LETTER TO ALL EMPLOYEES ABOUT A NEW EFFORT TO ACCELERATE DIVERSITY WITHIN AT&T THE EFFORT WILL ATTEMPT TO FIRMLY EMBED DIVERSITY INTO THE OPERATIONS OF OUR BUSINESS MR ALLEN WROTE BLACK EMPLOYEES CURRENTLY COMPRISE 148 OF AT&T'S TOTAL US WORK FORCE AND 86 OF ITS 112359 MANAGERS IN THE US THE SPOKESMAN SAID 9310060100 931006 FORMER BOSTON CO OFFICER SIGNS SEC CONSENT DECREE BOSTON BOSTON CO'S FORMER CHIEF FINANCIAL OFFICER WHO LEFT THE COMPANY UNDER ALLEGATIONS THAT HE WAS PART OF A SCHEME TO REPORT INFLATED PROFITS AGREED TO SIGN A CONSENT DECREE WITH THE SECURITIES AND EXCHANGE COMMISSION SEVERAL TOP OFFICERS OF BOSTON CO WHICH IS NOW A UNIT OF MELLON BANK CORP RESIGNED IN 1989 AFTER THE IRREGULARITIES WERE MADE PUBLIC THE EXECUTIVES INCLUDED BOSTON CO PRESIDENT JAMES VON GERMETEN WHO AGREED TO A CONSENT DECREE WITH THE SEC LAST OCTOBER MR MURPHY AGREED NOT TO PRACTICE BEFORE THE SEC FOR AT LEAST FOUR YEARS MEANING HE IS BARRED FROM FILING REPORTS OR AUDITS WITH THE COMMISSION ACCORDING TO THE DECREE AFTER THAT HE MAY REAPPLY BEFORE THE COMMISSION THIS IS ALL FROM A LONG TIME AGO AND THE AGREEMENT WITHOUT ADMITTING OR DENYING WRONGDOING WILL FINALLY PUT IT ALL PAST HIM SAID MR MURPHY'S ATTORNEY JOHN GILMORE 9310060099 931006 INDUSTRY FOCUS BIG BUILDERS HAVE NEW SOURCE OF FUNDS IN JUNK BONDS BANKS NOW READY TO LEND AGAIN MAY FIND DEBT MARKET IS ANOTHER RIVAL BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL BANKS HAVE DECIDED TO LEND AGAIN TO HOME BUILDERS BUT NOW IT'S THE BANKS' TURN TO GET THE COLD SHOULDER JUST 18 MONTHS AGO BUILDERS WOULD HAVE GRABBED THE MONEY BUT SINCE THEN AS BANKS CONTINUED TO SPURN REALESTATE LENDING SOME BUILDERS FOUND A MORE RECEPTIVE SOURCE OF FUNDS THE JUNK BOND MARKET SINCE MARCH 1992 ABOUT A DOZEN OF THE INDUSTRY'S BIGGEST HOME BUILDERS HAVE RAISED NEARLY 2 BILLION IN JUNK BONDS SPECULATIVEGRADE ISSUES THAT CARRY LOW CREDIT RATINGS NOW FLUSH WITH CASH BUILDERS CAN IGNORE THE ENTREATIES OF BANKS RETURNING TO THE INDUSTRY FOR NOW BANKS AREN'T TOO UPSET AT BEING THE SPURNED SUITOR I DON'T KNOW MANY BANKS THAT WOULD WANT THEIR REALESTATE LENDING TO GO UP THAT MUCH TO BEGIN WITH SAYS ROBERT ALBERTSON A BANKING ANALYST WITH GOLDMAN SACHS & CO STILL OVER THE LONG TERM THE JUNK BOND MARKET COULD BECOME YET ANOTHER FORMIDABLE COMPETITOR TO THE BANKING INDUSTRY WHICH IS ALREADY WAGING TURF BATTLES WITH WALL STREET AND THE INSURANCE INDUSTRY HOME BUILDERS HAVE BEEN AMONG THE MOST AGGRESSIVE USERS OF JUNK BONDS BUT THEY AREN'T ALONE SINCE EARLY 1992 CORPORATE BORROWING IN THE MARKET HAS JUMPED TO SOME 85 BILLION ALTHOUGH THAT'S ONLY A FRACTION OF THE TOTAL BANK DEBT THAT CORPORATIONS HAVE OUTSTANDING THE JUNK BOND MARKET IS NONETHELESS EATING INTO BANKS' TRADITIONAL LENDING BUSINESS AND FUTURE PROFITS SOME ANALYSTS HOWEVER SAY BUILDERS CAN'T RELY ON THE JUNK BOND MARKET ANY MORE THAN THEY COULD ON THE BANKS THE MARKET COLLAPSED IN LATE 1989 AND HAS COME BACK STRONGLY IN THE PAST TWO YEARS PARTLY BECAUSE MUTUAL JUNK FUNDS HAVE SWELLED WITH MONEY FROM SMALL INVESTORS DISSATISFIED WITH RATES ON CERTIFICATES OF DEPOSIT THESE SMALL INVESTORS CAN BE FICKLE HAVING POURED IN NEARLY 1 BILLION A MONTH INTO JUNK FUNDS DURING THE SUMMER THEY YANKED NEARLY 750 MILLION OUT DURING THREE RECENT WEEKS SO FAR THIS YEAR BIG CORPORATE BUILDERS WHO MOSTLY ARE SPECULATIVEGRADE HAVE RAISED 133 BILLION NEARLY DOUBLE THE PREVIOUS RECORD SET IN 1986 ACCORDING TO DILLON READ & CO THE JUNK BOND MARKET HAS BEEN SO RECEPTIVE TO THE INDUSTRY THAT TWO MAJOR BUILDERS NVR INC AND US HOME CORP ISSUED JUNK BONDS AS PART OF REORGANIZATION PLANS DESIGNED UNDER BANKRUPTCYCOURT PROTECTION BUT MOST ISSUERS WEATHERED THE HOMEBUILDING DOWNTURN IN DECENT SHAPE AND THEIR RUSH TO BONDS WAS PROMPTED BY FRUSTRATION WITH COMMERCIAL BANKERS BANKS HAVE NEVER BEEN ENTIRELY COMFORTABLE WITH REAL ESTATE'S CYCLICAL NATURE BUILDERS COMPLAIN WITH THE REGULATORY CRACKDOWN OF THE EARLY '90S MANY BANKS DEMANDED STIFF COLLATERAL OF HOME BUILDERS WHO PREVIOUSLY BORROWED ON AN UNSECURED BASIS OTHERS QUIT REALESTATE LENDING ALTOGETHER SOME INVOLUNTARILY HOVNANIAN ENTERPRISES INC OF RED BANK NJ FOR EXAMPLE LOST ONE OF SEVEN LENDERS TO THE RESOLUTION TRUST CORP MANY BANKS WOULDN'T EVEN RETURN MY PHONE CALLS LARRY SORSBY HOVNANIAN'S CHIEF FINANCIAL OFFICER SAYS OF HIS SEVERALYEAR EFFORT TO LINE UP BANKS TO REPLACE THOSE THAT DIDN'T INTEND TO RENEW THREEYEAR UNSECURED CREDIT LINES EXPIRING THIS PAST JULY THOSE LINES TOTALED 230 MILLION WITH THE JUNK BOND MARKET'S REVIVAL THE CFO RAISED 200 MILLION IN 10YEAR AND 12YEAR BONDS BY JULY HE HAD REACHED AGREEMENTS WITH FOUR BANKS FOR NEW CREDIT LINES TOTALING 95 MILLION WITH BANKS EAGER TO TALK BUSINESS RECENTLY HE'S NOW NEGOTIATING WITH A FIFTH FOR AN ADDITIONAL 15 MILLION OR SO TO WRAP UP HIS BANKLENDING NEEDS A LOT OF US FEEL THAT IT'S BETTER TO HAVE A BALANCE IN TERMS OF SOURCES OF CAPITAL RATHER THAN HAVING ALL YOUR EGGS IN ONE BASKET SAYS APRIL MORRIS CHIEF FINANCIAL OFFICER OF STANDARD PACIFIC CORP COSTA MESA CALIF IN MARCH HER COMPANY SOLD 100 MILLION IN JUNK BONDS AND SHE ALSO CUT CREDITLINE COMMITMENTS THE BALANCE DOESN'T COME CHEAP MOST BUILDERS PAY ANNUAL INTEREST OF AT LEAST 10 ON JUNK BONDS WHICH IS AT LEAST THREE PERCENTAGE POINTS ABOVE WHAT THEY WOULD PAY ON A BANK CREDIT LINE BUT BANKS ALSO CHARGE FEES AND PROVIDING SUCH FINANCING ADDS UP TO LUCRATIVE HARDTOREPLACE BUSINESS WITH INVESTMENTGRADE CUSTOMERS LONG AGO LOST TO WALL STREET THE GROWTH OF THE JUNKBOND MARKET HITS BANKS WHERE THEY LIVE SAYS LAWRENCE COHN AN ANALYST WITH PAINEWEBBER INC WHILE SOME BANKS HOPE TO MAKE UP FOR THE LOST INCOME BY UNDERWRITING BONDS THEMSELVES MOST BANKS THAT ONCE DISDAINED SMALLBUSINESS LENDING ARE INCREASINGLY COMPETING FOR IT AND THERE'S NOT ENOUGH LOAN BUSINESS OUT THERE TO FEED ALL THOSE HUNGRY MOUTHS SAYS MR COHN BUT SOME EXPERTS ALSO FRET ABOUT THE BUILDERS THE JUNK BOND MARKET WON'T ALWAYS BE THERE FOR THEM MR ALBERTSON THE GOLDMAN SACHS ANALYST SAYS WHEN THINGS TURN TOUGH AGAIN IN TERMS OF PUBLIC FUNDS IT TENDS TO TURN QUICKLY AND REESTABLISHING GOOD BANK RELATIONSHIPS DOESN'T HAPPEN OVERNIGHT BUT WITH BOND MATURITIES AT LEAST SEVEN YEARS AWAY THE JUNKFINANCED BUILDERS SAY THEY'RE NOT NERVOUS AND TO MAINTAIN BANK RELATIONSHIPS MOST LIKE HOVNANIAN AND STANDARD PACIFIC ARE REDUCING BUT NOT CANCELING CREDIT LINES MEANWHILE THEIR MIDSIZE COMPETITORS THOSE THAT BUILD 50 TO 250 HOUSES A YEAR CAN ONLY WISH THEY FACED THE SAME DILEMMA SINCE EARLY THIS YEAR WHEN THE CREDIT CRUNCH BEGAN LIFTING MIDSIZE SURVIVORS HAVE BEEN ABLE TO GET CONSTRUCTION LOANS BACKED BY HOMEBUYERS' SALES AGREEMENTS BUT BANKS STILL DEMAND DOWN PAYMENTS OF AS MUCH AS 50 FOR LAND BECAUSE BOND UNDERWRITERS GENERALLY WON'T LOOK AT A DEAL OF LESS THAN 50 MILLION MANY SMALLER BUILDERS CAN'T STEP OVER THE THRESHOLD TO PATCH TOGETHER DOWN PAYMENTS SOME MIDSIZE CONCERNS ARE GIVING UP POTENTIAL PROFITS BY TEAMING WITH YIELDHUNGRY PRIVATE INVESTORS AND PENSION FUNDS IN CONTRAST THE STRONGEST OF THE BIG BUILDERS ARE SITTING ON ENOUGH LAND TO LAST THREE OR MORE YEARS OBTAINED AT PRICES 40 TO 60 BELOW THOSE OF THE LATE '80S ANALYSTS SAY WITH THE FINANCIAL STRENGTH THAT JUNK BONDS PROVIDED SOME BIG BUILDERS HAVE JUDICIOUSLY SNATCHED UP PROPERTY RANGING FROM TRACTS WITH ROADS AND UTILITIES IN PLACE TO CORNFIELDS UNDER REVIEW FOR SUBDIVISION APPROVAL WE'RE BUYING OTHER PEOPLE'S PROBLEMS SAYS JOEL RASSMAN CFO OF TOLL BROTHERS INC A PHILADELPHIAAREA BUILDER WITH 175 MILLION IN JUNK BONDS A GOOD DEAL OF LAND HAS BEEN BOUGHT FROM BANKS ON TERMS MINIMIZING BUILDERS' RISK WHILE THE BUILDERS LOCK UP ENTIRE PARCELS AT FIXED PRICES THEY GENERALLY PAY OUT CAPITAL FOR CHUNKS OF THE PARCELS ONLY AS HOUSES ARE BUILT HOVNANIAN HAS ACQUIRED NEARLY 10000 LOTS OVER THE LAST TWO YEARS UNDER SUCH TERMS IT'S A JUSTINTIME INVENTORY APPROACH APPLIED TO REAL ESTATE MR SORSBY THE CFO SAYS BANKS DON'T LIKE THE TERMS BUT IT'S A BUYER'S MARKET SAYS ROBERT EBERHARDT AN EXECUTIVE VICE PRESIDENT WITH UNITED JERSEY BANK 9310060098 931006 FOREIGN EXCHANGE DOLLAR STAGES REBOUND AGAINST MARK REGAINS MOST OF ITS EARLY YEN LOSSES BY TIMOTHY MAPES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR REBOUNDED AGAINST THE MARK TUESDAY AS INVESTORS DECIDED THAT THE SELLOFF ON MONDAY'S DEFEAT OF THE RUSSIAN HARDLINERS HAD RUN ITS COURSE AND IT WAS OFF ONLY SLIGHTLY FROM THE YEN AFTER CLAWING BACK MOST OF ITS EARLY LOSSES CAUSED BY A COMMENT MADE BY THE GOVERNOR OF THE BANK OF JAPAN LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16260 MARKS UP FROM 16238 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10575 YEN DOWN A BIT FROM 10580 YEN STERLING WAS TRADING AT 15150 UP SLIGHTLY FROM 15145 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10575 YEN AND AT 16258 MARKS FOR MUCH OF THE DAY THE DOLLAR WAS HEADED SOUTH AGAINST THE MARK AS PLAYERS CONTINUED TO DUMP THE CURRENCY AFTER RUSSIAN PRESIDENT BORIS YELTSIN FORCED THE SURRENDER OF HIS HARDLINE OPPONENTS IN PARLIAMENT BY EARLY TRADING IN NEW YORK THE DOLLAR WAS CHANGING HANDS AT 16130 MARKS AND PLAYERS DECIDED THE SLIDE HAD GONE ON LONG ENOUGH PEOPLE GOT A LITTLE CARRIED AWAY SELLING DOLLARS AFTER THE RESOLUTION OF THE RUSSIAN STANDOFF SAID DAVID MORRISROE VICE PRESIDENT AT NATIONAL WESTMINSTER BANK PLC IN NEW YORK THE CONFLICT HAD GIVEN THE DOLLAR A BOOST AGAINST THE MARK AS PLAYERS WORRIED THAT THE CONFRONTATION IN MOSCOW COULD ERUPT INTO A WIDER STRUGGLE THAT MIGHT SPILL OVER AND HURT GERMANY AND THE MARK ONCE WE GOT DOWN TO 16130 MARKS PEOPLE PERCEIVED IT AS A BUYING OPPORTUNITY SAID DENNIS PETTIT FOREIGN EXCHANGE MANAGER AT LONGTERM CREDIT BANK OF JAPAN IN NEW YORK FROM THERE HE SAID THE DOLLAR BOUNCED BACK QUITE SHARPLY BREAKING A TECHNICAL RESISTANCE AT 16180 MARKS AND SURGING AS HIGH AS 16299 MARKS BEFORE SETTLING BACK LATE IN THE NEW YORK SESSION TRADERS ADDED THAT MANY PLAYERS WERE UNWILLING TO KEEP UP THEIR SALES OF THE DOLLAR WITH THE RUSSIAN SITUATION STILL FAR FROM CLEAR THEY NOTED THAT SUNDAY'S LARGE AND BLOODY UPRISING BY THOUSANDS OF ANTIYELTSIN DEMONSTRATORS SIGNALS THAT THE RUSSIAN PRESIDENT CAN'T YET CLAIM TOTAL VICTORY IN HIS STRUGGLE WITH OPPONENTS OF REFORM THE SITUATION IN RUSSIA RIGHT NOW ISN'T SO CLEAR AS TO JUSTIFY GETTING TOO LONG IN MARKS MR PETTIT SAID ALSO DAMPING THE ENTHUSIASM FOR SELLING THE DOLLAR TRADERS SAID WAS WARINESS AHEAD OF A CRUCIAL REPORT ON THE STATE OF THE US ECONOMY ON FRIDAY THE COMMERCE DEPARTMENT IS TO RELEASE ITS NONFARMPAYROLL REPORT FOR SEPTEMBER WHICH INVESTORS SEE AS A SNAPSHOT OF THE PACE AT WHICH THE US ECONOMY IS RECOVERING TRADERS SAID THAT THE MARKET WIDELY EXPECTS THE REPORT TO SHOW AN INCREASE OF BETWEEN 160000 AND 200000 JOBS FOR THE MONTH A SHARP SWING FROM LAST MONTH'S DISAPPOINTING LOSS OF 39000 JOBS BUT TRADERS WARNED THAT THE HIGH EXPECTATIONS COULD BE SETTING UP THE DOLLAR FOR A FALL IF THE HEADLINE FIGURE DOESN'T INSTANTLY IMPRESS TRADERS WITH THE STRENGTH OF THE US RECOVERY MEANWHILE AGAINST THE YEN THE DOLLAR SPENT MUCH OF THE DAY RECAPTURING EARLY LOSSES INCURRED AFTER A COMMENT BY YASUSHI MIENO GOVERNOR OF THE BANK OF JAPAN ANSWERING QUESTIONS BEFORE THE BUDGET COMMITTEE OF THE UPPER HOUSE OF THE JAPANESE PARLIAMENT MR MIENO SAID THAT THE YEN'S RAPID RISE AGAINST THE DOLLAR WON'T NECESSARILY HURT THE JAPANESE ECONOMY HE NOTED THAT A STRONGER YEN DAMPS INFLATION PRESSURES BY LOWERING THE COST OF IMPORTS I DON'T THINK THE COMMENT WAS INTENDED TO BE ADVOCATING A STRONGER YEN SAID MR PETTIT BUT NEVERTHELESS HE ADDED SOME PLAYERS USED IT AS AN OPPORTUNITY TO SELL THE DOLLAR A LITTLE LOWER AGAINST THE YEN THOSE SALES PUSHED THE US CURRENCY TO AN INTRADAY LOW OF 10519 YEN BEFORE SOLID BUYING INTEREST FROM JAPANESE LIFEINSURANCE COMPANIES HELPED TO STEADY THE DOLLAR AND BEGIN ITS SLOW CLIMB FOR THE REST OF THE DAY DEALERS SAID 9310060096 931006 RAMTRON TO RECEIVE LOAN COLORADO SPRINGS COLO RAMTRON INTERNATIONAL CORP SAID ITS TWO LARGEST SHAREHOLDERS AGREED TO PROVIDE A FIVEYEAR 14 MILLION CONVERTIBLE TERM LOAN AND A TWOYEAR 6 MILLION REVOLVING CREDIT LINE THE SEMICONDUCTOR MAKER SAID IT WILL USE THE PROCEEDS FOR WORKING CAPITAL AND TO FINANCE GROWTH INCLUDING BUILDING INVENTORY AS IT RECEIVES ORDERS FOR SPECIALTY SEMICONDUCTOR MEMORY PRODUCTS IN CONNECTION WITH THE LOAN AGREEMENTS RAMTRON SAID IT ISSUED FIVEYEAR WARRANTS TO BUY UP TO ABOUT 23 MILLION COMMON SHARES TO THE LENDERS OREN L BENTON AND THE NATIONAL ELECTRICAL BENEFIT FUND 9310060095 931006 QUAKER OATS ACQUISITION CHICAGO QUAKER OATS CO SAID IT ACQUIRED CLOSELY HELD PETROFSKY'S BAKERY PRODUCTS CO A MAKER OF FROZEN BAGELS AND SPECIALTY BREADS THE FOOD COMPANY DIDN'T DISCLOSE TERMS OF THE TRANSACTION FOR THE MARYLAND HEIGHTS MO CONCERN WHICH HAS ABOUT 100 EMPLOYEES 9310060094 931006 TELEVISION CRUSADE AGAINST ABC'S NYPD BLUE' GOES LOCAL BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WTVQ IN LEXINGTON KY DIDN'T AIR THE THIRD EPISODE OF ABC'S NYPD BLUE LAST NIGHT THE PREEMPTION WAS NOTEWORTHY BECAUSE THE ABC AFFILIATE DID AIR THE FIRST TWO EPISODES AND RECEIVED 39000 CALLS FROM VIEWERS MANY OF THEM PROTESTING THE SHOW NYPD BLUE THE DARK AND GRITTY PORTRAYAL OF THE LIVES OF TWO NEW YORK CITY POLICE DETECTIVES HAS OPENED UP A NEW FRONT FOR CRUSADERS INTENT ON STAMPING OUT TELEVISION PROGRAMMING THEY FIND MORALLY OFFENSIVE INSTEAD OF TARGETING JUST THE NETWORK AND THE SHOW'S NATIONAL ADVERTISERS ORGANIZED PRESSURE GROUPS HAVE TURNED THEIR SIGHTS AND CONTROVERSIAL TACTICS ON LOCAL STATIONS WHICH THEY VIEW AS MORE VULNERABLE STATIONS THAT ARE AIRING THE PROGRAM WHOSE RATINGS HAVE BEEN STRONG HAVE BEEN SUBJECTED TO INSULTS PICKETS ADVERTISER DEFECTIONS AND THE NETWORK ASSERTS EVEN DEATH THREATS THE USUAL HANDFUL OF LETTERS AND PHONE CALLS HAS BECOME AN AVALANCHE AT SOME STATIONS ONE STATION WHICH REQUESTED ANONYMITY IN FEAR OF COPYCAT INCIDENTS WAS FIRED AT FROM A PASSING VEHICLE DURING THE FIRST EPISODE NYPD BLUE IS LACED WITH FLASHES OF NUDITY AND REAL LIFE DIALOGUE THAT WHILE NOT OBSCENE GOES FURTHER THAN MOST TV SERIES IN ITS CRUDITY AND CASUAL REFERENCES TO BODY PARTS AND FUNCTIONS THE CONTROVERSY SWIRLING AROUND THE SHOW PRODUCED BY STEVEN BOCHCO OF HILL STREET BLUES FAME HAS TOUCHED THE NETWORK AS WELL ABC RECEIVED A SUBSTANTIAL NUMBER OF PREPRINTED PROTEST POSTCARDS IT DECLINES TO SAY HOW MANY ALMOST ALL FROM A WELLORGANIZED CAMPAIGN LED BY THE REV DONALD WILDMON'S AMERICAN FAMILY ASSOCIATION BASED IN TUPELO MISS THE GROUP TOOK OUT ADS IN NATIONAL NEWSPAPERS AND ITS OWN PUBLICATIONS URGING PEOPLE TO COMPLAIN AND ABC EXECUTIVES HAVE RECEIVED PERSONAL LETTERS IN WHICH THE WRITERS WISHED UPON THEM SUCH ILL WILL AS BANKRUPTCY BURNING BUILDINGS AND DEATH AND CALLED THE EMPLOYEES NAMES THAT COULDN'T BE AIRED ON THE SHOW ITSELF BUT IT IS THE NETWORK'S AFFILIATE STATIONS THAT ARE BEARING THE BRUNT OF THE PRESSURE PARTICULARLY IN SMALLER CITIES IN THE SOUTH TO SOME EXTENT THE PRESSURE HAS WORKED NEARLY 50 OF ABC'S AFFILIATE STATIONS AREN'T CARRYING THE SHOW THAT'S DOWN FROM THE 57 THAT PREEMPTED THE FIRST EPISODE ON SEPT 21 BUT STILL NEARLY ONEFOURTH OF ABC'S 225 AFFILIATE STATIONS AN UNPRECEDENTED NUMBER OF PREEMPTIONS WITH THE EXCEPTION OF DALLAS SYRACUSE NY AND LOUISVILLE KY MOST OF THE STATIONS REFUSING TO AIR THE SHOW ARE IN SMALL RURAL AREAS SO ONLY ABOUT 8 OF THE COUNTRY'S POPULATION CAN'T SEE THE SHOW ABC ENTERTAINMENT PRESIDENT TED HARBERT LAST WEEKEND THREATENED THAT IN MARKETS WHERE ABC AFFILIATES CONTINUE TO PREEMPT THE SHOW ABC WOULD START LETTING COMPETING INDEPENDENT STATIONS AIR IT TO GET 100 COVERAGE OF THE COUNTRY GRASSROOTS CAMPAIGNS TO BOTH KILL UNWANTED SHOWS AND SUPPORT QUALITY ONES ARE NOTHING NEW MR WILDMON FIRST DREW ATTENTION IN 1977 WHEN HE CAUSED AN UPROAR OVER ABC'S SOAP WHICH MADE ITS DEBUT WITHOUT ANY ADVERTISERS BUT THE TACTICS HAVE BECOME INCREASINGLY SOPHISTICATED GROUPS AS DIVERSE AS MR WILDMON'S AFA THE GAY AND LESBIAN ALLIANCE AGAINST DEFAMATION AND VIEWERS FOR QUALITY TELEVISION ROUTINELY DISTRIBUTE TO THEIR MEMBERSHIPS THE NAMES ADDRESSES AND PHONE NUMBERS OF NETWORK EXECUTIVES AND ADVERTISERS HAVE BEEN SUBJECTED TO BOYCOTTS NONE OF WHICH HAVE SUCCEEDED IN FORCING A PROGRAM OFF THE AIR SMALL STATIONS ARE MORE VULNERABLE TO PRESSURE BECAUSE THEIR POOL OF LOCAL ADVERTISERS IS SMALLER GENERAL MANAGERS REPORT BEING LOBBIED IN THEIR CIVIC CLUBS AT CHURCH EVEN AT THEIR CHILDRENS' SOCCER GAMES ONE OF THE MOST INTENSELY TARGETED STATIONS WAS LEXINGTON'S WTVQTV WHICH UNTIL IT DROPPED NYPD BLUE LAST NIGHT HAD BEEN THE ONLY STATION IN KENTUCKY TO AIR THE SHOW WTVQ ALSO RAN TWO TELEPHONE POLLS TO SAMPLE VIEWER REACTION THE POLLS WHICH COST CALLERS 60 CENTS PER CALL DREW 39000 ELIGIBLE VOTES OR 4 OF THE STATION'S VIEWERSHIP HOUSEHOLDS WERE LIMITED TO THREE CALLS THE PROCEEDS WERE DONATED TO CHARITY THE CALLS RAN 58 AGAINST NYPD BLUE THE STATION ALSO WAS PICKETED AND LOST TWO ADVERTISERS WKRN IN NASHVILLE TENN RECEIVED BETWEEN 5000 AND 10000 PETITIONS PLUS LETTERS AND PICKETS MANY FROM MR WILDMON'S AFA BUT ALSO FROM A LOCAL GROUP CALLED AMERICA 21 ONE PHONE POLL DREW 7000 CALLS IN AN HOUR STAFFERS AT THE STATION ANSWERED 400 SPONTANEOUS PHONE CALLS ON THE SHOW'S FIRST NIGHT DEB MCDERMOTT THE STATION'S VICE PRESIDENT AND GENERAL MANAGER SAYS ONE CALLER TOLD HER THAT ON JUDGMENT DAY SHE WOULD HAVE A MARK ON HER RECORD FOR DECIDING TO AIR THE SHOW IN MEMPHIS TENN WHBQ HAD TO ANSWER TO ANGRY ADVERTISERS IN AUGUST WHO WANTED TO KNOW WHY THE STATION WAS RUNNING THEIR ADS IN NYPD BLUE WITHOUT TELLING THEM ALTHOUGH THE SHOW HADN'T EVEN AIRED AT THE TIME THE ADVERTISERS HAD BEEN VISITED BY MEMBERS OF PRESSURE GROUPS MANY OF THE THINGS THEY SAID WERE OUTRIGHT LIES SAYS TIM LYNCH THE STATION'S PRESIDENT AND GENERAL MANAGER TWO LOCAL BUSINESSES HAVE SINCE PULLED ALL ADS OFF WHBQ SIMPLY BECAUSE THE STATION IS CARRYING THE SHOW LAST NIGHT THE STATION PLANNED TO SURPRISE VIEWERS IN THE MIDDLE OF NYPD BLUE WITH A TELEPHONE POLL ASKING WHETHER OR NOT TO KEEP AIRING THE PROGRAM THE STATION PLANNED TO ABIDE BY THE MAJORITY'S WISHES TO PREVENT PRESSURE GROUPS FROM ORGANIZING THEIR OPPOSITION THE POLL WASN'T ANNOUNCED IN ADVANCE MR LYNCH SAYS SOME STATIONS HAVE REACTED TO VIEWERS WHO DEMANDED TO SEE THE SHOW STATIONS IN ALBUQUERQUE NM AND EVANSVILLE IND PICKED UP THE SHOW WITH THE SECOND EPISODE FOR MANY LOCAL STATIONS THE UNPRECEDENTED INTEREST IN THIS PARTICULAR SHOW IS PUZZLING SINCE OTHER SHOWS SUCH AS ABC'S DAYTIME SOAP OPERAS ALSO CONTAIN ADULT CONTENT MANY STATION MANAGERS BLAME MR BOCHCO FOR FUELING THE CONTROVERSY WITH ADVANCE HYPE ABOUT HIS PLANS AND WORRY THAT OTHER PRODUCERS WILL TAKE A SIMILAR TACK LEAVING STATIONS CAUGHT IN THE MIDDLE MR BOCHCO COULDN'T BE REACHED FOR COMMENT I RESENT THE NETWORK PUTTING US IN THIS POSITION AND I RESENT MR BOCHCO PUTTING THE NETWORK IN THIS POSITION SAYS JERRY LINGERFELT VICE PRESIDENTGENERAL MANAGER OF WTVC IN CHATTANOOGA TENN WHICH IS CARRYING THE SHOW AND HAS LOST ONE ADVERTISER AS A RESULT THIS IS PUBLICITY THEY COULDN'T AFFORD TO BUY MS MCDERMOTT OF WKRN IN NASHVILLE SAYS I DON'T WANT TO TAKE ON THE RESPONSIBILITY OF A FULLTIME JOB PREVIEWING NETWORK SHOWS SHE WATCHED EACH NYPD BLUE EPISODE THREE TIMES BEFORE DECIDING TO CARRY THE PROGRAM BUT FOR OTHERS THE SHOW SPEAKS FOR ITSELF I'D RATHER SAY I CAVED IN TO MY OWN CONSCIENCE THAN PRESSURE FROM ORGANIZED GROUPS SAYS JOHN ROGERS GENERAL MANAGER OF WABC IN GREENVILLE MISS WHICH LIKE ALL THE MISSISSIPPI ABC STATIONS HAS PREEMPTED THE SHOW I'M CONCERNED WITH THE ENCROACHMENT AGAINST MORALITY WE'VE SEEN IN COMMERCIAL TELEVISION AND I DECIDED THIS WAS FINALLY A PLACE WHERE WE NEEDED TO DRAW A LINE OTHERS ARE MORE PHILOSOPHICAL ABOUT THE FRACAS THE SHOW HAS BECOME A SYMBOL OF SOME PEOPLE'S FRUSTRATION WITH TELEVISION AND SOME OF THE THINGS THEY SEE SAYS CHRIS ALDRIDGE VICE PRESIDENT AND GENERAL MANAGER OF LEXINGTON'S WTVQ 9310060093 931006 ABREAST OF THE MARKET SHARES ARE MIXED AS PROFIT REPORT SPURS SELLING OF TECHNOLOGY STOCKS BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES ENDED MIXED AS INVESTORS HAMMERED AWAY AT SEMICONDUCTOR SHARES THE DOW JONES INDUSTRIAL AVERAGE ROSE 950 POINTS TO 358726 BUOYED BY STRONG GAINS IN A HANDFUL OF ECONOMICALLY SENSITIVE STOCKS BUT STANDARD & POOR'S 500STOCK INDEX SLIPPED 014 TO 46120 AND THE NASDAQ COMPOSITE INDEX DROPPED 257 TO 76227 BROADSIDED BY HEAVY SELLING IN TECHNOLOGY STOCKS ADVANCING ISSUES EDGED PAST DECLINERS 1010 TO 1001 VOLUME ON THE BIG BOARD SWELLED TO 2836 MILLION SHARES FROM 2258 MILLION SHARES MONDAY IT WOULD CERTAINLY APPEAR THAT THE MARKET IS HOLDING UP QUITE WELL GIVEN THE DAMAGE IN SOME INDIVIDUAL STOCKS SAID LON GORMAN COMANAGER OF EQUITY TRADING AT FIRST BOSTON THOUGH BROAD STOCK MARKET AVERAGES TURNED IN LACKLUSTER PERFORMANCES THAT WAS NOT THE CASE WITH SEMICONDUCTOR SHARES WHICH WERE HARD HIT ON THE BIG BOARD TEXAS INSTRUMENTS PLUNGED 4 7/8 TO 70 1/2 MOTOROLA FELL 2 1/8 TO 98 3/4 MICRON TECHNOLOGY TUMBLED 4 3/4 TO 49 7/8 AND NATIONAL SEMICONDUCTOR FELL 1 1/4 TO 18 7/8 THE SHARP DECLINES CAME IN RESPONSE TO A DISAPPOINTING THIRDQUARTER EARNINGS REPORT AND COMMENTS FROM ADVANCED MICRO DEVICES WHICH FELL 4 3/4 TO 22 ON THE NEWS THE CONCERN REPORTED THIRDQUARTER EARNINGS OF 61 CENTS A SHARE UP FROM 51 CENTS LAST YEAR BUT BELOW THE 70 CENTSASHARE ANALYSTS HAD EXPECTED IN ADDITION AMD DISCLOSED THAT ITS SALES OF EARLIER 386 CHIPS DECLINED IN THE QUARTER TO 19 MILLION UNITS FROM MORE THAN 2 MILLION MEANWHILE SOME ANALYSTS SAID THE SUDDEN DOWNTURN IN TECHNOLOGY STOCKS HAS WORRISOME IMPLICATIONS FOR THE MARKET JOHN W CHURCH CHIEF INVESTMENT OFFICER AT THE GLENMEDE TRUST CO NOTED THAT THE WILD MOVE SIMPLY ILLUSTRATES HOW PRICEY STOCKS ARE WITH FEW STOCK GROUPS LOOKING ATTRACTIVE INVESTORS HAVE BEEN PILING INTO STOCKS THAT ARE ON THE UPTREND BUT ONCE THERE IS ANY HINT OF SOMETHING GOING AMISS THE MONEY COMES OUT JUST AS FAST AS IT WENT IN MR CHURCH SAID TRADING IN THE AMERICAN DEPOSITARY RECEIPTS OF A FOREIGN COMPANY TOOK CENTER STAGE AT THE NEW YORK STOCK EXCHANGE DAIMLERBENZ WHICH BECAME THE FIRST GERMAN COMPANY TO BE LISTED ON THE BIG BOARD FELL 1/4 TO 46 3/4 IN HEAVY TRADING DAIMLER'S SHARES CLOSED AT ROUGHLY EQUAL TO ITS ADJUSTED CLOSING PRICE IN FRANKFURT KEYCORP AND SOCIETY CORP CAME UNDER SELLING PRESSURE AMID GROWING WALL STREET SKEPTICISM ABOUT THEIR RECENTLY ANNOUNCED MERGER LAWRENCE VITALE AN ANALYST AT BEAR STEARNS & CO SAID HE REMAINS UNCONVINCED THAT THE COMBINATION MAKES SENSE INSURANCE STOCKS ALSO RETREATED AFTER KIDDER PEABODY ANALYST STEVEN GAVIOS LOWERED HIS EARNINGS ESTIMATES FOR PROPERTY AND CASUALTY STOCKS GENERAL RE PLUMMETED 3 3/4 TO 120 1/8 AMERICAN INTERNATIONAL DECLINED 3 1/2 TO 94 1/4 CONTINENTAL DROPPED 1 3/8 TO 29 1/2 AND CHUBB FELL 1 5/8 TO 81 7/8 MINNESOTA MINING & MANUFACTURING JUMPED 2 1/8 TO 103 3/4 PRUDENTIAL SECURITIES RAISED ITS RATING ON THE STOCK TO BUY FROM HOLD ANALYST ALEX HENDERSON CITED RECENT WEAKNESS IN THE ST PAUL MINN COMPANY'S SHARES THE STOCK TRADED AS HIGH AS 117 IN JUNE SHARES OF MOST PLAYERS IN THE PARAMOUNT COMMUNICATIONS TAKEOVER BATTLE LOST GROUND PARAMOUNT FELL 1 5/8 TO 76 7/8 NYNEX DROPPED 1 TO 45 AND ON THE AMERICAN STOCK EXCHANGE VIACOM SHED 7/8 TO 57 1/8 QVC NETWORK HOWEVER INCHED UP 1/8 TO 55 7/8 ON NASDAQ QVC YESTERDAY SAID IT HAS ARRANGED 4 BILLION IN FINANCING FOR ITS BID FOR THE NEW YORK MEDIA GIANT ON MONDAY NYNEX DISCLOSED PLANS TO MAKE A 12 BILLION INVESTMENT IN VIACOM MONEY THAT WILL SUPPORT VIACOM'S PARAMOUNT BID RETAILING STOCKS WERE A BRIGHT SPOT AFTER ANALYSTS AT SEVERAL BROKERAGE FIRMS MADE POSITIVE COMMENTS SEARS ROEBUCK & CO ADDED 1 5/8 TO 57 5/8 AFTER PRUDENTIAL SECURITIES RAISED ESTIMATES FOR ITS 1993 AND 1994 EARNINGS ELSEWHERE KMART ROSE 7/8 TO 24 7/8 DAYTON HUDSON GAINED 1 3/4 TO 69 3/8 GAP CLIMBED 2 TO 31 1/4 AND WALMART ROSE 1 1/4 TO 26 BOMBAY CO JUMPED 2 1/8 TO 48 5/8 THE FORT WORTH TEXAS HOME FURNISHINGS RETAILER SAID ITS SAMESTORE SALES THOSE FROM LOCATIONS THAT HAVE BEEN OPEN AT LEAST A YEAR INCREASED 21 IN SEPTEMBER SAFEWAY ROSE 1 5/8 TO 19 3/4 AFTER IT REPORTED A THIRDQUARTER PROFIT OF 34 CENTS A SHARE UP FROM 17 CENTS A YEAR EARLIER ANALYSTS HAD EXPECTED THE OAKLAND CALIF GROCER TO HAVE EARNINGS OF JUST 28 CENTS SHARES OF THE BIG THREE US AUTO MAKERS WERE MIXED AS NORTH AMERICA'S MAJOR CAR PRODUCERS RELEASED SALES DATA FOR THE LAST 10 DAYS OF SEPTEMBER CHRYSLER ROSE 5/8 TO 49 1/2 FORD MOTOR WAS UNCHANGED AT 56 3/4 AND GENERAL MOTORS INCHED UP 1/8 TO 43 9310060092 931006 SEC SUES FUTURE COMMUNICATIONS INC ALLEGING MANIPULATION OF STOCK PRICE BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS THE SECURITIES AND EXCHANGE COMMISSION SUED FUTURE COMMUNICATIONS INC AND ITS TOP OFFICER IN FEDERAL COURT HERE ACCUSING THEM OF FRAUDULENTLY INFLATING THE VALUE OF THE COMPANY'S STOCK THE CIVIL SUIT ALLEGES THAT THE COMPANY AND SERGIO BOSCO ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER CONDUCTED AN ELABORATE PROMOTIONAL CAMPAIGN OF FALSE AND MISLEADING INFORMATION DESIGNED TO DRIVE UP THE STOCK PRICE AND DIDN'T DISCLOSE BAD NEWS THAT MIGHT HURT THE STOCK TO FURTHER THE SCHEME THE SUIT ALLEGES THE COMPANY FABRICATED DETAILS OF ITS CORPORATE OPERATIONS THE SEC SUIT ALLEGES THAT MR BOSCO MADE AT LEAST 300000 IN ILLGOTTEN GAINS FROM THE SALE OF STOCK BY HIM AND NOMINEES INCLUDING HIS CHILDREN AT THE SEC'S REQUEST US DISTRICT JUDGE JOE KENDALL ISSUED A TEMPORARY RESTRAINING ORDER LATE MONDAY FREEZING MR BOSCO'S ASSETS MR BOSCO WAS ORDERED TO PROVIDE AN ACCOUNTING OF HIS ASSETS BY A SCHEDULED OCT 14 HEARING MR BOSCO AND THE COMPANY WERE ALSO ENJOINED FROM DESTROYING OR REMOVING RECORDS RELATED TO THE QUESTIONABLE SECURITIES TRANSACTIONS THE JUDGE'S ORDER SAID THERE IS GOOD CAUSE TO BELIEVE MR BOSCO AND THE COMPANY VIOLATED SECURITIES LAWS AND WOULD CONTINUE TO DO SO BESIDES THE INJUNCTION THE SEC'S SUIT SEEKS PROFITS IT SAYS MR BOSCO ALLEGEDLY MADE FROM THE STOCK SALES UNSPECIFIED MONETARY PENALTIES AND AN ORDER PROHIBITING MR BOSCO FROM ACTING AS AN OFFICER OR DIRECTOR OF ANY PUBLIC COMPANY NEITHER MR BOSCO 58 YEARS OLD NOR HIS ATTORNEY RETURNED TELEPHONE CALLS SEEKING COMMENT OTHER COMPANY OFFICIALS WEREN'T AVAILABLE EITHER FUTURE COMMUNICATIONS WHICH PROVIDES PROGRAMMING FOR CABLE TELEVISION HAS BEEN THE CENTER OF A BREWING TEMPEST FOR SOME TIME THE NATIONAL ASSOCIATION OF SECURITIES DEALERS HALTED TRADING IN THE STOCK ON ITS SYSTEM AUG 31 ON SEPT 21 THE SEC SUSPENDED ALL TRADING IN FUTURE CITING QUESTIONS CONCERNING THE ADEQUACY AND ACCURACY OF PUBLICLY DISSEMINATED INFORMATION FUTURE COMMUNICATIONS' STOCK CLIMBED AS HIGH AS 27375 A SHARE IN LATE AUGUST BEFORE THE TRADING HALT FROM 650 A SHARE IN JUNE ALONG THE WAY IT DREW CONSIDERABLE ATTENTION FROM SHORT SELLERS WHO WERE BETTING THE STOCK WOULD EVENTUALLY COLLAPSE IN SUITS FILED IN FEDERAL COURT IN NEW YORK SEVERAL OF THOSE SHORT SELLERS ACCUSED REYNOLDS KENDRICK STRATTON INC A MARKET MAKER IN FUTURE STOCK AND BROKER RAFI KHAN OF MANIPULATING THE PRICE OF THE COMPANY'S STOCK THEY ALLEGE THAT THE SECURITIES FIRM AND THE BROKER WERE PRIVY TO UNDISCLOSED INFORMATION ABOUT THE COMPANY MR KHAN WHO HAS BEEN THE PRINCIPAL SPOKESMAN FOR REYNOLDS KENDRICK HAS TERMED THE ALLEGATIONS FRIVOLOUS AND THE SECURITIES FIRM HAS BEEN ATTEMPTING TO FORCE THE SHORT SELLERS TO COVER THEIR POSITIONS IN FUTURE COMMUNICATIONS AT 36 A SHARE THE CASE IS STILL PENDING SHORT SELLERS WERE ORDERED TO PLACE IN ESCROW AN AMOUNT EQUAL TO THE MARKET VALUE OF THEIR HOLDINGS AT THE TIME TRADING WAS HALTED THE SEC'S SUIT CHARGES THAT FUTURE MADE A NUMBER OF FALSE STATEMENTS TO THE PUBLIC AND WITHHELD POTENTIALLY DAMAGING INFORMATION AMONG THE CHARGES ALLEGED IN THE SUIT THE COMPANY CLAIMED IN JULY AND AUGUST THAT IT HAD ACQUIRED TWO FILM LIBRARIES A MONTH LATER HOWEVER THE COMPANY SAID THE ACQUISITION HADN'T TAKEN PLACE AS IT PREVIOUSLY HAD SAID BUT WOULD BE FINANCED BY AN UNAFFILIATED OFFSHORE ENTITY IDENTIFIED AS RUMBA INTERNATIONAL SA A PANAMANIAN CORPORATION THE SEC CHARGES THAT RUMBA DOESN'T EXIST ACCORDING TO AN EXHIBIT ATTACHED TO THE LAWSUIT PANAMA'S CORPORATE REGISTRY HAS NO TRACE OF THE COMPANY THE COMPANY FAILED TO DISCLOSE A 29 MILLION JUDGMENT IT WAS ORDERED TO PAY TO PHILIPS CREDIT CORP LAST YEAR BY A FEDERAL COURT IN DALLAS UNTIL IT WAS REPORTED IN THE DALLAS MORNING NEWS AND THE SEC INQUIRED ABOUT IT THE COMPANY ALSO FAILED TO DISCLOSE THAT IT IGNORED THE COURT ORDER THE SUIT ALLEGES FUTURE LATER CLAIMED AN ANONYMOUS OPTION HOLDER WOULD PAY PHILIPS 2 MILLION TO SETTLE THE CASE AND HAD ALREADY PAID 100000 THE SEC ALLEGES THAT FUTURE FAILED TO DISCLOSE THAT THE SOURCE OF THE PAYMENT WHICH WAS EVENTUALLY REDUCED TO 19 MILLION WAS ITS LAWYER FUTURE FALSELY CLAIMED THAT BILLY BOB'S TEXAS A FORT WORTH TEXAS NIGHTCLUB HAD AGREED TO PAY 15 MILLION TO SPONSOR A COUNTRYMUSIC PROGRAM TO BE BROADCAST FROM THE CLUB ON MAIN STREET TELEVISION NETWORK INC WHICH IS OWNED BY A FUTURE COMMUNICATIONS UNIT FURTHER THE SUIT ALLEGES THE COMPANY FALSELY CLAIMED THAT MSTV SOLD 27 MILLION OF ADVERTISING IN MAY TO DENVER'S FIRST CAPITAL TRADERS INC 9310060091 931006 SEC MAY ACT ON DISCLOSING PAYMENTS TO BROKERS TRIMMING SETTLEMENT TIME BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION IS EXPECTED TODAY TO ALLOW MARKET MAKERS TO CONTINUE GIVING CASH AND NONCASH INDUCEMENTS TO BROKERS FOR BUYANDSELL ORDERS FOR STOCKS AS LONG AS CUSTOMERS KNOW ABOUT IT SOME CRITICS OF THE PRACTICE INCLUDING THE NEW YORK AND AMERICAN STOCK EXCHANGES HAVE CALLED FOR A BAN AGAINST THE INDUCEMENTS THE SEC IS ALSO LIKELY TO APPROVE SHORTENING TO THREE DAYS FROM FIVE THE TIME ALLOWED FOR SETTLING STOCK TRANSACTIONS THE CHANGE IS INTENDED TO CUT OFF OPPORTUNITIES FOR CUSTOMERS TO RENEGE ON ORDERS PARTICULARLY IN TIMES OF MARKET CRISIS BUT SMALL SHAREHOLDERS AND STOCKBROKERS HAVE RESISTED A SHORTER SETTLEMENT CYCLE THEY ARGUE THAT THREE DAYS ISN'T ENOUGH TIME TO MAKE SURE CHECKS OR STOCK CERTIFICATES ARE DELIVERED AND THAT THE SHORTER CYCLE WOULD DISCRIMINATE AGAINST PEOPLE WHO LIVE IN RURAL AREAS THE PROPOSED DISCLOSURE OF INDUCEMENTS BY MARKET MAKERS WOULD REQUIRE BROKERS TO ITEMIZE THE PAYMENTS ON STATEMENTS CONFIRMING THE EXECUTION OF CUSTOMERS' ORDERS AND ON PERIODIC STATEMENTS OF CUSTOMER ACCOUNTS THE INDUCEMENTS OFFERED BY MARKET MAKERS ARE COMMONLY KNOWN AS PAYMENT FOR ORDER FLOW MOST INVESTORS AREN'T AWARE THAT THEIR BROKERS ARE GETTING PAID TO HAVE CUSTOMERS' ORDERS EXECUTED BY A PARTICULAR MARKET MAKER WITH DISCLOSURE THE SEC WOULD BE ABLE TO GAUGE THE DEPTH OF SHAREHOLDERS' CONCERN AND DECIDE WHETHER TO MOVE TOWARD A BAN THE ISSUE ISN'T HUGE PAYMENTS MARKET MAKERS TYPICALLY PAY TWO OR THREE CENTS A SHARE FOR ORDERS STEERED THEIR WAY BUT OPPONENTS OF THE PRACTICE PRIMARILY THE NEW YORK AND AMERICAN STOCK EXCHANGES AS WELL AS MARKET MAKERS WHO DON'T PAY FOR ORDER FLOW CONTEND THAT INDIVIDUAL INVESTORS ARE SUSCEPTIBLE TO HAVING THEIR ORDERS STEERED TO MARKET MAKERS WHO AREN'T OFFERING THE BEST PRICE IT INCREASES THE MARGIN BETWEEN BID AND ASK PRICES SAID RALPH WHITWORTH PRESIDENT OF THE WASHINGTONBASED UNITED SHAREHOLDERS ASSOCIATION WHICH WOULD LIKE TO SEE THE PAYMENTS BANNED A BUYER AND SELLER SHOULD BE ABLE TO COME TOGETHER WITHOUT PAYMENT FOR ORDER FLOW HE SAID THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AND SUCH THIRDMARKET MAKERS AS BERNARD MADOFF WHOSE OFFEXCHANGE MARKETMAKING FIRM IS ONE OF THE LARGEST BUYERS OF BROKERS' ORDERS VEHEMENTLY DISAGREE IN TESTIMONY BEFORE THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE EARLIER THIS YEAR NASD PRESIDENT JOSEPH HARDIMAN ASSERTED THAT COMPETITION FOR ORDER FLOW INCLUDING PAYMENTS IMPROVES THE QUALITY OF THE STOCK MARKETS BY SPURRING TECHNOLOGICAL INNOVATIONS AMONG OTHER THINGS THE NASD SUPPORTS DISCLOSURE OF THE PAYMENTS AND RECENTLY VOTED TO REQUIRE ITS MEMBER FIRMS TO INFORM THEIR CUSTOMERS OF ANY INDUCEMENTS RECEIVED A BAN HOWEVER GOES TOO FAR FOR THE NASD'S TASTE THE TESTIMONY APPARENTLY FAILED TO MOVE SUBCOMMITTEE CHAIRMAN EDWARD J MARKEY HAD THE SEC NOT UNDERTAKEN THE DISCLOSURE RULES THE MASSACHUSETTS DEMOCRAT YESTERDAY SAID HE WOULD HAVE INTRODUCED LEGISLATION TO DO SO THE TESTIMONY BEFORE OUR COMMITTEE MADE IT CLEAR THAT DISCLOSURE WAS THE BEST ANTIDOTE TO THE PROBLEM THEN THE MARKET CAN SORT OUT HOW IT WANTS TO REACT REP MARKEY SAID I THINK THE FEELING THAT I HAD AFTER THE HEARINGS WAS THAT WE SHOULD GIVE DISCLOSURE A CHANCE TO WORK AND THEN COME BACK AND MAKE A DECISION THE SEC MOVE TOWARD DISCLOSURE WOULD DOVETAIL WITH THE RELEASE OF THE MARKET 2000 STUDY BY THE AGENCY'S MARKET REGULATION DIVISION THE STUDY EXPECTED BEFORE YEAR END TAKES A BROAD LOOK AT SEVERAL MARKET ISSUES INCLUDING PAYMENT FOR ORDER FLOW BY STARTING A RULEMAKING PROCEDURE NOW ON THE INDUCEMENT ISSUE THE SEC WOULD BE ABLE TO ADDRESS RECOMMENDATIONS IN THE STUDY 9310060090 931006 ECONOMY BIG THREE WON CARSALES RACE IN LATEST YEAR DETROIT'S 93 MODELS TURNED AROUND YEARS OF LOSSES TO JAPANESE COMPANIES BY KRYSTAL MILLER AND JACQUELINE MITCHELL STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT DETROIT ENDED THE FIERCELY COMPETITIVE 1993 MODEL YEAR AS THE BIG WINNER REVERSING YEARS OF STEADY SURRENDER TO THE JAPANESE AND GAINING BACK A FULL PERCENTAGE POINT OF THE TOTAL US VEHICLE MARKET IN THE OCTOBERTOSEPTEMBER MODEL YEAR THAT JUST ENDED THE US BIG THREE ACCOUNTED FOR 73 OF THE NEW CARS AND LIGHT TRUCKS SOLD IN THE AMERICAN MARKET THAT'S UP ONE POINT FROM THE 1992 MODEL YEAR DESPITE GENERAL MOTORS CORP'S CONTINUING SLIDE THE JAPANESE CAR MAKERS' SHARE MEANWHILE FELL FOR THE FIRST TIME IN AT LEAST A DECADE TO 23 IN THE FINAL 10 DAYS OF SEPTEMBER NORTH AMERICANBUILT VEHICLES SOLD AT A SEASONALLY ADJUSTED ANNUAL RATE OF 112 MILLION VEHICLES UP FROM A 109 MILLIONUNIT RATE IN THE YEAREARLIER PERIOD THAT COMPARES WITH A SELLING RATE OF 115 MILLION VEHICLES IN THE PREVIOUS 30DAY PERIOD OVERALL AMERICANS BOUGHT 438708 NORTH AMERICANBUILT VEHICLES IN THE SEPT 2130 PERIOD UP 45 FROM A YEAR EARLIER MOST IMPORTERS DON'T REPORT 10DAY SALES FIGURES THE 10DAY VOLUME BROUGHT SEPTEMBER SALES INCLUDING BOTH IMPORTS AND NORTH AMERICANBUILT VEHICLES TO 1140024 CARS AND LIGHT TRUCKS UP 6 FROM A YEAR EARLIER AND EQUIVALENT TO A SEASONALLY ADJUSTED SELLING RATE OF 132 MILLION VEHICLES A YEAR FOR THE ENTIRE 1993 MODEL YEAR VEHICLE SALES TOTALED 13631022 UNITS UP 83 FROM THE 1992 MODEL YEAR ALTHOUGH THE DETROIT CAR MAKERS HAVE BEEN STEADILY MAKING THEIR PRODUCTS MORE COMPETITIVE AND HAVE MADE GREAT STRIDES IN ELEVATING THEIR QUALITY IMAGE AMONG AMERICAN CAR BUYERS WHAT REALLY TURNED THE TABLES WAS THE SURGING YEN THAT GAVE THE BIG THREE A SUBSTANTIAL PRICE ADVANTAGE AND THE AMERICAN CAR MAKERS EXPANDED ON THAT BY DEPLOYING DISCOUNT LEASING PROGRAMS AND VALUE PRICING PACKAGES THE AGGRESSIVE PRICING STRATEGY PAID OFF FORD MOTOR CO'S TAURUS WAS THE BESTSELLING PASSENGER CAR FOR THE 1993 MODEL YEAR A SPOT THAT HAD BEEN OCCUPIED BY HONDA MOTOR CO'S ACCORD FOR THE PREVIOUS THREE MODEL YEARS THE TAURUS HAD ALSO BEAT OUT THE ACCORD FOR 1992 CALENDARYEAR SALES LEADERSHIP FORD SOLD 399573 TAURUSES TO HONDA'S 393477 ACCORDS CHRYSLER CORP'S DODGE CARAVAN AND GM'S CAVALIER BUMPED HONDA'S CIVIC FROM THE TOP10 SELLING VEHICLES IN THE US THE BESTSELLING VEHICLE IN THE US FORD'S FSERIES PICKUP WITH 522096 SALES UP FROM THE PRIOR MODEL YEAR'S 488146 THE BATTLE WILL CERTAINLY INTENSIFY IN THE CURRENT MODEL YEAR WHICH BEGAN FRIDAY HONDA INTRODUCED ITS REDESIGNED ACCORD LAST MONTH AND IN JANUARY WILL MAKE ITS FIRST FORAY INTO THE DETROITDOMINATED LIGHTTRUCK MARKET WITH A NEW SPORTUTILITY VEHICLE BUILT BY ISUZU MOTOR LTD AND NISSAN MOTOR CO PLANS TO INTRODUCE AN ALLNEW MAXIMA SEDAN WHICH IT HOPES WILL WIN SALES FROM FORD'S TAURUS AND CHRYSLER'S POPULAR LH SEDANS THE JAPANESE ALSO ARE EXPECTED TO BROADEN THEIR LEASING PROGRAMS TO COMPETE MORE EFFECTIVELY WITH THE BIG THREE STARTING YESTERDAY TOYOTA MOTOR CORP IS OFFERING A WELLEQUIPPED CAMRY FOR 289 A MONTH ON A 36MONTH LEASE WITH 500 DOWN BUT DETROIT WILL CONTINUE TO COUNTER WITH NEW PRODUCTS AND MARKETING PROGAMS GM NEXT SPRING WILL INTRODUCE ITS RESTYLED CHEVROLET LUMINA AND MONTE CARLO PASSENGER CARS AND NEAR THE END OF THE MODEL YEAR IT WILL INTRODUCE NEW VERSIONS OF ITS CHEVROLET CAVALIER AND GEO METRO CARS FORD IS COMING OUT WITH A HANDFUL OF NEW PRODUCTS DURING THE MODEL YEAR INCLUDING A RESTYLED MUSTANG AND REPLACEMENTS FOR THE TEMPO/TOPAZ SUBCOMPACTS AND THE EVEN SMALLER FESTIVA AND CHRYSLER WILL BE OUT WITH ITS HIGHLY TOUTED NEW NEON SMALL CAR IN JANUARY THE LIGHTTRUCK WARS WILL ALSO HEAT UP WHEN GM INTRODUCES THIS FALL ITS REDESIGNED S10 SERIES OF COMPACT PICKUPS AND CHRYSLER ROLLS OUT ITS NEW FULLSIZED DODGE PICKUP EARLY NEXT YEAR FORD PLANS TO INTRODUCE A NEW MINIVAN ALTHOUGH THE NATION'S ECONOMIC RECOVERY SO FAR HAS BEEN SLOWER THAN HOPED FOR WE EXPECT CONTINUING IMPROVEMENT IN MARKET CONDITIONS DURING THE 1994 MODEL YEAR SAID ROBERT L REWEY FORD'S VICE PRESIDENT FOR ITS NORTH AMERICAN MARKET AND SALES OPERATIONS FORD CONTINUED TO PICK UP MARKET SHARE IN SEPTEMBER RISING TO 261 FROM 253 FIVE OF THE BESTSELLING VEHICLES IN THE US WERE BUILT BY FORD CHRYSLER MEANWHILE ALSO SAW ITS SHARE OF THE US VEHICLE MARKET GROW TO 145 FROM 136 A YEAR EARLIER CHRYSLER CONTINUED TO BENEFIT FROM STRONG SALES OF ITS MINIVANS AND LH SEDANS GM WHICH HAS BEEN LOSING MARKET SHARE FOR SOME TIME SAW ITS PORTION OF THE TOTAL US VEHICLE MARKET ERODE FURTHER TO 302 IN SEPTEMBER FROM 333 DURING THE YEAREARLIER PERIOD FOR THE MODEL YEAR GM'S MARKET SHARE SLIPPED TO 332 FROM 346 DURING THE 1992 MODEL YEAR ITS TOTAL VEHICLE SALES WERE OFF 4 IN SEPTEMBER FROM A YEAR BEFORE HONDA'S SHARE OF THE US VEHICLE MARKET ROSE IN SEPTEMBER TO 66 FROM 64 A YEAR EARLIER DURING THE ENTIRE MODEL YEAR HOWEVER HONDA LOST GROUND THE AUTO MAKER'S SHARE OF THE TOTAL US VEHICLE MARKET FELL TO 54 DURING THE 1993 MODEL YEAR FROM 61 A YEAR EARLIER TOYOTA CAPTURED 83 OF THE US VEHICLE MARKET IN SEPTEMBER UP FROM 77 A YEAR EARLIER THE SALES SPURT WAS DUE LARGELY TO ROBUST DEMAND FOR THE CAMRY SEDAN DURING THE MODEL YEAR TOYOTA CAPTURED 7 OF US MARKET SHARE DOWN FROM 79 IN THE PREVIOUS MODEL YEAR LED BY STRONG SALES OF THE ALTIMA SEDAN NISSAN GRABBED 54 OF THE US MARKET IN SEPTEMBER UP FROM 52 A YEAR BEFORE FOR THE MODEL YEAR NISSAN CAPTURED 49 OF THE US MARKET UP FROM 44 DURING THE PREVIOUS 12MONTH PERIOD MEANWHILE EUROPEAN AUTO MAKERS POSTED MIXED RESULTS BAYERISCHE MOTOREN WERKE AG SOLD 6926 CARS IN SEPTEMBER A 192 IMPROVEMENT FROM A YEAR AGO MERCEDESBENZ AG SAW ITS SEPTEMBER SALES EDGE UP 66 TO 4673 VOLKSWAGEN AG HOWEVER REPORTED SEPTEMBER SALES OF 4562 DOWN 314 FROM A YEAR EARLIER ALTOGETHER THE EUROPEANS CLAIMED 22 OF THE US TOTAL VEHICLE MARKET IN SEPTEMBER DOWN SLIGHTLY FROM 23 A YEAR BEFORE MEXICO FOR SALE IN THE US TOURISTDELIVERY SALES OF IMPORTED MODELS A YEAR EARLIER PERCENTAGE DIFFERENCES BASED ON DAILY SALES RATE RATHER THAN SALES VOLUME HONDA MOTOR CO SOLD 343017 ACCORDS FOR THE MODEL YEAR ENDED SEPT 30 IN AN ARTICLE WEDNESDAY THE AMOUNT WAS MISSTATED AS 393477 ACCORDS 9310060089 931006 ENTERPRISE HEALTHPLAN SUBSIDY FOR SMALL BUSINESS HOLDS SURPRISES ANALYSIS OF FOUR HYPOTHETICAL FIRMS SHOWS PAYMENTS COULD VARY A LOT BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL MANY SMALL BUSINESSES WITH LOWPAID WORKERS LOOK FORWARD TO A FEDERAL SUBSIDY UNDER PRESIDENT CLINTON'S HEALTHCARE PLAN BUT WHAT IS THEIR PIECE OF THE PIE FIGURING THAT OUT IS NO PIECE OF CAKE THE ADMINISTRATION SAYS ANNUAL HEALTHINSURANCE CONTRIBUTIONS OF COMPANIES WITH 50 OR FEWER WORKERS WOULD BE CAPPED FROM A LOW OF 35 OF PAYROLL WHERE WAGES AVERAGE LESS THAN 12000 A YEAR TO A HIGH OF 79 WHERE THEY AVERAGE MORE THAN 24000 HOWEVER THE ADMINISTRATION IS VAGUE ABOUT DEFINING PAYROLL AND THE EXACT METHODS FOR CALCULATING AN EMPLOYER'S PROJECTED PAYMENTS SO THE WALL STREET JOURNAL ASKED THREE HEALTHCARE ANALYSTS TO COMPUTE THE CLINTON PLAN'S EXPECTED SUBSIDIES FOR FOUR HYPOTHETICAL SMALL COMPANIES THEIR CONCLUSION SMALLBUSINESS OWNERS SHOULD EXPECT SURPRISES THE SIZE OF A SUBSIDY COULD VARY TREMENDOUSLY MORE THAN MOST ENTREPRENEURS REALIZE AND WOULD DEPEND ON NUMEROUS FACTORS SUCH AS A COMPANY'S STRUCTURE THUS IN THE FOUR CASE STUDIES THE AVERAGE SUBSIDY PER WORKER RANGED FROM 159 TO 1706 A YEAR ALL THREE ANALYSTS EMPHASIZED HOWEVER THAT COMPUTATIONS AT THIS EARLY STAGE OF THE HEALTHCARE DEBATE DEPEND A LOT ON GUESSWORK THE ANALYSTS ARE JANE JENSEN A PRINCIPAL AND HEALTHCARE ACTUARY AT WILLIAM M MERCER INC IN DENVER JOHN O'DONNELL DIRECTOR OF HEALTHCARE POLICY AND LEGISLATION AT BUCK CONSULTANTS IN SECAUCUS NJ AND THOMAS KUHLMAN VICE PRESIDENT IN THE CHICAGO OFFICE OF BENEFITS CONSULTANTS TOWERS PERRIN THE CONSULTANTS ALSO NOTED THAT IT IS UNCERTAIN HOW LONG THE SUBSIDIES WOULD LAST OR WHETHER CONGRESS WILL MAKE SURE THEY AREN'T WIPED OUT BY INFLATION AND THE TRIO OF EXPERTS PREDICTED THAT THE ANNUAL COST OF INSURANCE COVERAGE WHICH IS PROJECTED TO AVERAGE 1800 FOR INDIVIDUALS AND 4200 FOR FAMILIES NATIONALLY WOULD DIFFER WIDELY BY GEOGRAPHIC AREA BEARING ALL THIS IN MIND HERE ARE THE FOUR SCENARIOSBASED ON THE CLINTON PROPOSAL THAT EMPLOYERS WOULD BE RESPONSIBLE FOR 80 OF YEARLY PREMIUMS AND WORKERS FOR 20 A RESTAURANT THE OWNERS A HUSBAND AND WIFE PAY THEMSELVES 20000 EACH A YEAR THE DINING ESTABLISHMENT EMPLOYS 10 FULLTIMERS THREE NEED INDIVIDUAL COVERAGE AND THE REST REQUIRE FAMILY COVERAGE THESE WORKERS EACH EARN AN AVERAGE OF 13500 A YEAR TEN PARTTIME WORKERS EVENLY SPLIT BETWEEN INDIVIDUAL AND FAMILY COVERAGE NEEDS PUT IN AN AVERAGE OF 15 HOURS A WEEK AND MAKE AN AVERAGE OF 5500 A YEAR ANALYSIS THE EMPLOYER'S 80 SHARE OF INDIVIDUAL INSURANCE IS 1440 FOR ITS FULLTIME WORKERS AND HALF OF THAT OR 720 FOR PARTTIME WORKERS THE CLINTON PLAN PROJECTS THAT THE RESTAURANT'S ANNUAL CONTRIBUTION FOR FAMILY INSURANCE WOULD BE 2240 REPRESENTING 80 OF THE WEIGHTED AVERAGE PREMIUM ADJUSTED FOR THE NUMBER OF TWOWORKER FAMILIES IN A PROPOSED REGIONAL HEALTH ALLIANCE FOR HALFTIME WORKERS FAMILY COVERAGE WOULD COST THE RESTAURANT HALF OF THAT OR 1120 USING THESE FIGURES THE COMPANY'S SHARE OF ANNUAL PREMIUMS FOR ALL EMPLOYEES INCLUDING THE OWNERS WOULD BE 33680 BUT ITS TOTAL PAYROLL OF 230000 DIVIDED BY 17 WORKERS INCLUDING THE OWNERS AND COUNTING EACH PARTTIMER AS HALF OF AN EMPLOYEE YIELDS AN AVERAGE WAGE OF 13529 THAT MEANS THE COMPANY'S CONTRIBUTION WOULD BE CAPPED AT 38 OF PAYROLL OR 8740 THE GOVERNMENT WOULD PICK UP THE DIFFERENCE OR 24940 A YEAR POINT TO PONDER THERE ARE GLARING OMISSIONS IN THE CLINTON PROPOSAL FOR CALCULATING EMPLOYMENT LEVELS SAYS MERCER'S MS JENSEN TAKE A COMPANY WITH ONE FULLTIME WORKER EARNING 15000 AND ONE HALFTIMER EARNING 5000 DO YOU FIGURE AVERAGE WAGE BY DIVIDING 20000 BY 15 TO GET 13333 OR DO YOU ASSUME THE HALFTIMER IS EQUIVALENT' TO A FULLTIMER EARNING 10000 AND THUS DIVIDE 25000 BY 20 TO GET 12500 SHE ASKS THE PROPOSAL DOESN'T SAY THERE ARE THOUSANDS OF THOSE KINDS OF UNANSWERED QUESTIONS A VITAMINPILL MAKER ORGANIZED AS A USUAL C CORPORATION IT IS OWNED BY FOUR PARTNERS EACH GETS 110000 IN SALARY AND BONUSES 50000 IN DIVIDENDS AND 50000 IN TAXDEFERRED PROFITSHARING AND PENSION BENEFITS THE 50 FULLTIME EMPLOYEES 20 WITH INDIVIDUAL COVERAGE AND 30 WITH FAMILY COVERAGE EARN AN AVERAGE OF 15600 ANALYSIS THE COMBINED ANNUAL PAYROLL OF THE 50 WORKERS' WAGES AND THE FOUR OWNERS' SALARIES AND BONUSES COMES TO 1220000 OR AN AVERAGE OF 22593 WITH AN AVERAGE WAGE BELOW 24000 THE MANUFACTURER MEETS ONE REQUIREMENT FOR A LOWER CAP ON PAYROLL CONTRIBUTIONS BUT THE CONCERN WOULDN'T RECEIVE THE LOWER CAP BECAUSE ITS WORK FORCE EXCEEDS 50 PEOPLE INCLUDING THE OWNERS SO IT WOULD PAY THE MAXIMUM 79 OF PAYROLL OR 96380 A YEAR ITS ANNUAL PAYMENT FOR 20 INDIVIDUAL HEALTHINSURANCE POLICIES AND 34 FAMILY POLICIES WOULD COME TO 104960 THE GOVERNMENT SUBSIDY A SCANT 8580 A YEAR A CONSULTING COMPANY THE COMPANY SET UP AS A SOLE PROPRIETORSHIP IS OWNED BY A WOMAN WHO TAKES ITS ENTIRE ANNUAL PRETAX PROFIT OF 13000 AS THE SOLE EMPLOYEE SHE MUST ALSO PAY THE INDIVIDUAL'S PORTION OF HEALTH INSURANCE ANALYSIS THE OWNER WOULD BE INELIGIBLE FOR A SUBSIDY ON HER INDIVIDUAL ANNUAL CONTRIBUTION OF 360 BECAUSE SHE MAKES MORE THAN 150 OF POVERTYLEVEL INCOME FOR SOMEONE LIVING ALONE AS THE EMPLOYER HOWEVER HER YEARLY CONTRIBUTION WOULD BE CAPPED AT 38 OF 13000 OR 494 UNCLE SAM WOULD FORK OUT A 946 SUBSIDY POINT TO PONDER THE CLINTON PLAN ALLOWS THE OWNER TO DEDUCT THE ENTIRE 854 FROM HER PERSONAL INCOME TAXES A TEXTILE PRODUCER ORGANIZED AS A SOCALLED SUBCHAPTER S CORPORATION ITS OWNER TAKES NO SALARY BUT HE GETS 170000 A YEAR IN CORPORATE PRETAX PROFIT WHICH FLOWS TO HIM AS UNDISTRIBUTED TAXABLE INCOME SIXTEEN FULLTIME WORKERS EARN AN AVERAGE 10500 A YEAR FOUR GET INDIVIDUAL COVERAGE AND THE REST GET FAMILY COVERAGE ANALYSIS THE PICTURE HERE IS MURKY INDEED TWO SETS OF ASSUMPTIONS PRODUCE STARTLINGLY DIVERGENT RESULTS IF YOU COUNT THE OWNER AS A MEMBER OF THE WORK FORCE BUT EXCLUDE HIS INCOME THE MANUFACTURER'S AVERAGE WAGE IS 9882 AND THE EMPLOYER'S SHARE OF THE HEALTHINSURANCE BILL WOULD BE 35 OF 168000 OR 5880 SINCE THE PREMIUM FOR THE 17 EMPLOYEES WOULD BE 34880 THE FEDERAL SUBSIDY WOULD BE 29000 A YEAR BUT IF YOU INCLUDE THE OWNER'S INCOME AS WAGES THE EMPLOYER'S CONTRIBUTION TOWARD THE PREMIUM IS 55 OF 338000 OR 18590 THAT WOULD PRODUCE A SMALLER GOVERNMENT SUBSIDY OF 16290 POINT TO PONDER UNDER CURRENT FEDERAL LAW MR KUHLMAN OF TOWERS PERRIN NOTES OWNERS OF SUBCHAPTER S CORPORATIONS AREN'T CONSIDERED EMPLOYEES FOR PURPOSES OF PARTICIPATING IN BENEFIT PLANS WILL MR CLINTON IGNORE SUCH OWNERS' INCOME IN FIGURING THEIR COMPANIES' PAYROLL THAT'S AN ISSUE THE ADMINISTRATION NEEDS TO SORT OUT HE SAYS 9310060088 931006 MIDLAND PLANS STOCK PURCHASES MIDLAND TEXAS MIDLAND RESOURCES INC SAID IT INTENDS TO BUY AS MUCH AS 250000 OF COMMON STOCK OR 5 OF ITS SHARES OUTSTANDING PERIODICALLY ON THE OPEN MARKET THROUGH DEC 31 1994 MIDLAND AN OIL AND GAS COMPANY CURRENTLY HAS 2264522 COMMON SHARES OUTSTANDING 9310060087 931006 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB THIS IS A TALE OF TWO CRISES AND WHY ONE IS TURNING OUT THE RIGHT WAY FOR PRESIDENT CLINTON WHILE THE OTHER IS GOING BADLY TRAGICALLY WRONG IN ONE CRISIS THE THREAT TO RUSSIAN PRESIDENT BORIS YELTSIN THE CLINTON ADMINISTRATION HAS BEEN CLEAR PRECISE AND DECISIVE IN THE OTHER CRISIS THE DEPLOYMENT OF US TROOPS IN SOMALIA THE ADMINISTRATION HAS BEEN VAGUE UNCERTAIN AND SHIFTING IT MAY BE JUST A COINCIDENCE THAT MR CLINTON IS ACHIEVING HIS GOAL OF BOLSTERING MR YELTSIN IN RUSSIA WHILE HE IS NOWHERE CLOSE TO HIS GOAL OF STABILIZING SOMALIA BUT IT'S PROBABLY MUCH MORE THAN A COINCIDENCE IN FACT THE HANDLING OF THESE TWO CRISES OFFER SOME VALUABLE LESSONS IN HOW THE US SHOULD MOVE THROUGH THE WILDS OF THE POSTCOLD WAR WORLD OBVIOUSLY THE TWO SITUATIONS ARE VASTLY DIFFERENT IN MANY WAYS AND COMPARISONS CAN BE OVERDRAWN THE BIG DIFFERENCE IS THAT THE US IS DIRECTLY INVOLVED IN SOMALIA AND IS ONLY AN INTERESTED BYSTANDER IN RUSSIA STILL AT A TIME WHEN EVERY FOREIGNPOLICY ANALYST WORTH HIS SALT IS STRUGGLING TO WRITE A NEW POSTCONTAINMENT DOCTRINE FOR US FOREIGN POLICY THESE TWO CASE STUDIES AT LEAST SUGGEST SOME GUIDING PRINCIPLES STATE AN ABSOLUTELY CLEAR PURPOSE IN RUSSIA MR CLINTON HAS BEEN CLEAR AND UNWAVERING THE US OBJECTIVE IS TO SUPPORT PRESIDENT YELTSIN AGAINST THE COMMUNISTERA RETROGRADES TRYING TO SHOVE HIM ASIDE IN SOMALIA THE GOALS HAVE BEEN EVERSHIFTING EVOLVING OVER TIME FROM SECURING FOOD LINES TO BUILDING POLITICAL STABILITY TO CLEANING UP THE CAPITAL CITY EVERYBODY UNDERSTOOD THE US POSITION IN RUSSIA NOBODY HAS BEEN SURE OF THE BOTTOM LINE IN SOMALIA BACK WHEN THE SOVIET UNION WAS THE ENEMY IT WASN'T ALWAYS NECESSARY TO CLEARLY EXPLAIN WHY THE US WAS ACTING ABROAD THE GLOBAL DUEL WITH MS OFTEN EXPLANATION ENOUGH NOW THE WORLD NEEDS TO BE TOLD AND IF THE EXPLANATION KEEPS CHANGING IT MAY BE THAT IT DOESN'T MAKE ENOUGH SENSE LEAD YOUR ALLIES DON'T BE LED BY THEM MR YELTSIN GAVE THE US A VAGUE ADVANCE WARNING BEFORE HE DISSOLVED THE RUSSIAN PARLIAMENT SO MR CLINTON WAS READY TO STEP OUT AND PULL OTHERS ALONG BEHIND HE DECLARED THE US POSITION THEN CALLED ALLIED LEADERS AND FIRED OFF MESSAGES TO SOME 100 US EMBASSIES ORDERING DIPLOMATS TO RALLY SUPPORT FOR MR YELTSIN A CLEAR WORLD VIEW EMERGED IN SOMALIA BY CONTRAST THE US WAS PULLED ALONG BY UNITED NATIONS SECRETARY GENERAL BOUTROS BOUTROS GHALI WHO WANTED TO GO BEYOND FEEDING SOMALIS TO THE MUCH DIFFERENT TASK OF BUILDING A WORKABLE POLITICAL SYSTEM I THINK THE CLINTON ADMINISTRATION WAS ACTUALLY INTRIGUED BY THIS NOTION OF NATIONBUILDING AND BOUTROS GHALI GOT THEM SUCKED INTO THIS SAYS WALTER KANSTEINER AN AFRICAN SPECIALIST IN THE BUSH ADMINISTRATION WHO RECENTLY VISITED SOMALIA SHOW THAT US INTERESTS ARE AT STAKE EVEN AFTER MR YELTSIN TURNED THE LIGHTS OUT ON HIS COUNTRY'S LAWMAKERS SUPPORT FOR HIM ROSE AMONG US LAWMAKERS WHEN MR CLINTON ASKED FOR QUICK PASSAGE OF AN AID PACKAGE FOR RUSSIA HE GOT IT VIRTUALLY OVERNIGHT WHY BECAUSE THE US'S NATIONALSECURITY INTEREST WAS SERVED BY MR YELTSIN'S SURVIVAL MEANWHILE CONGRESSIONAL SUPPORT FOR THE SOMALIA OPERATION HAS BEEN EVAPORATING WHY BECAUSE THERE'S NO SENSE OF A NATIONALSECURITY INTEREST THAT JUSTIFIES THE RISING LOSS OF US LIVES DEMOCRACY IS THE RIGHT GOAL ABOVE ALL MR YELTSIN IS GETTING UNEQUIVOCAL US BACKING BECAUSE HE CAN CLAIM TO BE A FORCE FOR DEMOCRACY AND THE PUBLIC BELIEVES DEMOCRACIES MAKE THE WORLD A SAFER AND SANER PLACE THE RECENT GOAL IN SOMALIA HAS BEEN TO STABILIZE THE COUNTRY NOBODY THINKS A MODEST INVESTMENT OF US EFFORT WILL PRODUCE A WORKING DEMOCRACY IN MANY WAYS THE ADMINISTRATION NOW IS TRYING TO HEAD DOWN A PATH MARKED BY SUCH PRINCIPLES MR CLINTON'S NATIONAL SECURITY ADVISER ANTHONY LAKE HAS PROCLAIMED IN RECENT DAYS THAT THE OVERALL GOAL OF US POLICY WILL BE THE ENLARGEMENT OF THE CIRCLE OF DEMOCRACIES AS A HUMANE POWER THE US HAS AN OBLIGATION TO FEED THE HUNGRY AND KEEP THE PEACE IN SOME SITUATIONS THAT DON'T FIT THAT FORMULA BUT THE TUMULTUOUS EVENTS OF THE PAST WEEK ILLUSTRATE THAT MR CLINTON HAS TO BE EXCEEDINGLY CAREFUL IN PICKING HIS SPOTS PEOPLE'S INTEREST IN FOREIGN ENTANGLEMENTS IS SO LOW RIGHT NOW THAT FRITTERING AWAY THAT INTEREST ON MARGINAL OPERATIONS COULD LEAVE THE PRESIDENT UNABLE TO ACT WHEN A TRULY VITAL MISSION COMES ALONG ISOLATIONIST SENTIMENT RUNS JUST BELOW THE SURFACE TODAY AND ILLCONCEIVED POLICIES RISK BRINGING IT ABOVE GROUND THIS WEEK'S UPHEAVAL ALSO SENDS A MORE IMMEDIATE MESSAGE AS WELL BOSNIA IS THE NEXT FOREIGN PROBLEM THAT BECKONS IF MR CLINTON WANTS TO GET INVOLVED IN A PEACEKEEPING MISSION THERE HE HAS A WAYS TO GO IN OFFERING THE KIND OF SHARP PICTURE OF THE US'S GOALS THAT SERVED HIM WELL WHEN THE RIOT POLICE HIT THE STREETS IN MOSCOW 9310060086 931006 LETTERS TO THE EDITOR DEEP PURPLE RAGE IN HIS SEPT 16 EDITORIAL PAGE ESSAY CALLING ALL BARNEY BASHERS TOM DOYLE CRITICIZES THE TODDLER TELEVISION PROGRAM BARNEY AS TOO ELEMENTARY FOR HIS INTELLECT THE CHILD WHOSE INTELLECT IS RESPONSIBLE FOR TOM'S AWARENESS OF BARNEY IS TWO YEARS OLD THE CHILD WHO IS RESPONSIBLE FOR MINE IS THREE BARNEY'S FUNCTION IS TO EXPOSE VERY YOUNG HUMAN BEINGS TO THE MOST BASIC CONCEPTS BY WHICH PEOPLE INTERACT IN OUR CULTURE TO USE AN ANALOGY THAT TOM THE SOFTWARE CONSULTANT WILL UNDERSTAND THE MIND OF A TWOYEAROLD IS SIMILAR TO A COMPUTER RIGHT OFF THE SHELF BEFORE DOS HAS BEEN LOADED BARNEY LOADS DOS COMMANDS I THINK WE ALL AGREE THAT IN THE BEST OF ALL WORLDS A CHILD WOULD NOT LEARN SOCIAL RULES AND NORMS FROM A TV SCREEN BUT LEARNING THE RULES FROM A FRIENDLY PURPLE DINOSAUR ON TV IS FAR BETTER THAN NOT LEARNING THE RULES AT ALL IN CASE TOM HASN'T NOTICED A SIGNIFICANT NUMBER OF CHILDREN ARE NOT ADEQUATELY ENCULTURATED IN OUR SOCIETY IT IS A HUGE TRAGIC PROBLEM INSTEAD OF COMPLAINING ABOUT THE METHODICAL AND NONTHREATENING FORMAT HIS CHILD IS LEARNING THROUGH TOM SHOULD BE THANKFUL SHE IS BEING EXPOSED TO RESPONSIBLE CONCEPTS HE REMARKS THAT HE PREFERS TO WATCH THE OLD CARTOONS WITH HIS CHILD I AGREE BUT THE OLD CARTOONS WERE PRODUCED TO PLAY BETWEEN FEATURES AT THE THEATER TO APPEAL TO A BROAD AUDIENCE THEY ARE CERTAINLY MORE INTERESTING BUT THEY DO NOT IMPART PARTICULARLY GOOD VALUES TOM EXPRESSES CONCERN THAT THE GENERATION THAT IS TRANSFIXED ON BARNEY IN THEIR FIRST FEW DIGITS OF LIFE WILL REMAIN SO I CAN REASSURE HIM THAT THIS IS NOT THE CASE LAST MONTH WE WERE AT THE COAST WITH THREE CHILDREN MY SON MY GODSON AND MY DE FACTO GODSON MY SON AGE 3 AND DE FACTO GODSON AGE 3 LIKE TO WATCH BARNEY MY GODSON AGE 5 CAN'T STAND HIM I CAN'T CLOSE WITHOUT TAKING A SHOT AT TOM'S CRITICISM OF THE COMMERCIALIZATION OF BARNEY AND BARNEY'S WAGES IF I HAD NOT READ THIS IN THE CORONARY ARTERY OF CAPITALIST JOURNALISM I MIGHT LET IT GO TOM THE MARKET REWARDS WORK WITH MONEY IT REWARDS VERY VALUABLE WORK WITH A LOT OF MONEY IT DOESN'T WORK PERFECTLY IT IS OFTEN GRATING AND FREQUENTLY OBNOXIOUS IT IS CAPITALISM AND JUST LIKE BARNEY IT GETS THE JOB DONE IT IS INDEED POIGNANT TO THINK THAT THE MURDERS OF TOURISTS IN FLORIDA MIGHT FALL INTO THE CATEGORY OF SENSELESS CRIME AND NOT INTO A MORE SENSIBLE CATEGORY SUCH AS ROBBERY YOUR SEPT 16 EDITORIAL STATES THAT ADMITTING THAT CRIME IS OUT OF CONTROL COULD BE THE BEGINNING OF A NEW ERA OF HONESTY AND SANITY YOU POINT OUT THAT PART OF THE PROBLEM IS A COMMON PERCEPTION THAT CRIME PAYS LET US NOT FORGET ANOTHER PART OF THE PROBLEM THE MEDIA SEEM TO BE DOING THEIR BEST TO DESENSITIZE US TO VIOLENCE NOT MORE THAN EIGHT INCHES FROM YOUR EDITORIAL DECRYING SENSELESS CRIME IS A PICTURE OF BARNEY THE DINOSAUR WITH THE CROSS HAIRS OF A RIFLE'S SCOPE SITTING SQUARELY BETWEEN HIS EYES THE MESSAGE IS CLEAR IF BARNEY OFFENDS YOU THE SOLUTION IS AS EASY AS SQUEEZING A TRIGGER IS THIS AN APPROPRIATE WAY OF PRESENTING TWO DIVERGENT VIEWS PLEASE TELL MR DOYLE THAT THERE MAY BE HELP AVAILABLE FROM THE OLDER SIBLINGS OF ALL THOSE BARNEYADDICTED TODDLERS TWO NINEYEAROLDS MY NEPHEW AND MY SON TAUGHT MY THREEYEAROLD SON A DOCTORED VERSION OF THE BARNEY THEME SONG I LOVE YOU YOU LOVE ME WE'RE A HAPPY FAMILY WITH A SHOTGUN BLAST AND BARNEY HITS THE FLOOR NO MORE PURPLE DINOSAUR WILLIE GLEEFULLY SINGS THIS VERSION TO ALL AND SUNDRY INCLUDING ELDERLY LADIES WHO QUICKLY REVISE THEIR IMPRESSION OF HIM FROM HOW SWEET TO HOW SHOCKING NONETHELESS WILLIE AT LEAST FOR NOW WOULD STILL RUN TO WATCH BARNEY ON TV AT 830 EACH MORNING FORTUNATELY I'VE FOUND A NURSERY SCHOOL THAT STARTS EARLY ENOUGH SO THAT WE HAVE ALREADY LEFT THE HOUSE I'VE NEVER HEARD SUCH INANE WHINING MAYBE I'M FROM A DIFFERENT GENERATION THAN MR DOYLE BUT I GREW UP TO THE VOICES OF CAPTAIN KANGAROO AND MR GREENJEANS ROMPER ROOM'S DOBEES AND DON'T BEES AND LAST BUT NOT LEAST THE MOUSEKETEERS MIC SEE YA REAL SOON KEY WHY BECAUSE WE LIKE YOU MOUSE RINGS AMAZINGLY FAMILIAR NO AS FAR AS I CAN TELL WATCHING THESE LOWLEVEL SHOWS DID NOT DOOM ME TO BE A CULTURAL MORON TO PARAPHRASE A PBS SPOT ABOUT THE EFFECT TELEVISION HAS ON YOUNG CHILDREN NOW WHEN THE SLATE IS CLEAN SHOULDN'T WE PAINT IT WITH THE BRIGHTEST PICTURES AND THE NICEST THOUGHTS THE BARNEY BASHERS WOULD DO BETTER TO CHANNEL THEIR DISCONTENT TOWARD PROTESTING SHOWS LIKE OPRAH PHIL SALLY JESSY RAPHAEL HARD COPY TOP COPS ETC THAT TRULY THREATEN TO STUNT THIS COUNTRY'S INTELLECTUAL DEVELOPMENT CHILDREN AND ADULTS ALIKE I WILL CONTINUE TO LET MY TWOYEAROLD ENJOY BARNEY & FRIENDS SECURE IN THE KNOWLEDGE THAT HE WILL LEARN SOON ENOUGH THAT PEOPLE CAN BE CRUEL EVERYONE IS NOT TREATED FAIRLY AND EQUALLY AND FAMILIES ARE NOT ALWAYS SAFE SANCTUARIES FROM THE WORLD WHAT A BITTER BITTER ESSAY ON MY MAIN MAN BARNEY MR DOYLE OBVIOUSLY HAS ZERO CONTROL OVER WHAT HIS DAUGHTER PAIGE CAN OR CANNOT HAVE IN REALITY HE'S NOT FORCED TO BUY A THING MY CHILDREN AGES TWO AND THREE LOVE BARNEY HOWEVER WE HAVE TOTAL CONTROL OVER WHEN AND HOW OFTEN THEY WATCH HIS SHOW OR AN OCCASIONAL TAPE YES DISCIPLINE DOES STILL EXIST IN SOME HOMES IN AMERICA WITH REGARD TO MR DOYLE'S ENVIRONMENTALLY CORRECT BODY SLAM I HAVE NO PROBLEM THAT MY CHILDREN ARE BEING TAUGHT THIS LESSON AT AN EARLY AGE THEY DON'T KNOW WHAT ENVIRONMENT MEANS BUT AT AGES TWO AND THREE THEY ALREADY KNOW NOT TO THROW A GUM WRAPPER OUT THE CAR WINDOW BY THE WAY THIS IS ABOUT THE MOST POLITICALLY CORRECT LESSON IN ALL OF BARNEY'S SHOWS UNLESS OF COURSE TEACHING GOOD MANNERS IS POLITICALLY CORRECT FOR THE RECORD I'M AN EXTREMELY CONSERVATIVE REPUBLICAN ALMOST 100 OPPOSED TO THE POLITICALLY CORRECT IDEOLOGY LIGHTEN UP MR DOYLE BARNEY RULES OF COURSE BARNEY MAKES ADULTS GAG HIS TARGET AUDIENCE IS BABIES THERE IS NOTHING WRONG WITH PITCHING LOW WHEN THE AUDIENCE IS IN DIAPERS AND ONLY INCHES ABOVE THE FLOOR SHOULD WE TRY METAPHOR OR MAYBE IRONY WITH TWOYEAROLDS GET A LIFE MR DOYLE YOU CAN HELP YOUR DAUGHTER DECIDE WHAT IS OR IS NOT PC WHEN SHE IS OLD ENOUGH TO BE AS REVOLTED BY BARNEY AS YOUR ARE OUR CHILDREN ARE EXPOSED TO TV SHOWS AT ALL HOURS OF THE DAY THAT PROMOTE VIOLENCE SEXUAL PROMISCUITY AND THE PRESSURE TO CONFORM I WOULD RATHER HAVE MY TWO DAUGHTERS SOAK UP SOME OF BARNEY'S CHARACTER DURING THEIR DAILY LIFE RATHER THAN WHAT THE CURRENT SOCIAL MAINSTREAM HAS TO OFFER INCLUDING AMPHIBIANS DRESSEDUP LIKE JAPANESE WARRIORS BY THE WAY MR DOYLE YOUR REFERENCE TO BARNEY CONDOMS CLEARLY SHOWS THAT YOUR HOURS WATCHING THE TUBE WITH YOUR DAUGHTER HAVE PAIDOFF YOU ARE TRULY USING YOUR IMAGINATION THERE IS A SIMPLE SOLUTION TO THE BARNEY PROBLEM DON'T FALL FOR THE ADVERTISERS' SHAMELESS UBIQUITOUS MERCHANDISING AND DON'T CAVE IN TO YOUR WHINING TODDLER OUR TWOYEAROLD SON CAUGHT AN EPISODE OF BARNEY AT A FRIEND'S HOUSE AND HIS EYES IMMEDIATELY GLAZED OVER WITH THAT I LOVE BARNEY LOOK I CAUGHT THE LAST 15 MINUTES OF THAT SAME EPISODE AND WAS SO NAUSEATED I BANNED BANAL BARNEY FROM OUR OWN HOUSE FOR ABOUT A MONTH AFTERWARD OUR SON ASKED ME REPEATEDLY FOR BARNEY I TOLD HIM VERY MATTEROFFACTLY THAT BARNEY DOESN'T APPEAR ON OUR TV DESPITE HIS IGNORANCE ABOUT THE CONTINUING DOINGS OF BARNEY OUR SON HAS YET TO BE OSTRACIZED BY HIS PLAYGROUP PALS I WOULD RATHER SPEND AN AFTERNOON TALKING WITH ANY TWOYEAROLD ABOUT THE BULLDOZERS AND DUMP TRUCKS THAT KEEP OUR SON CREATING HIS OWN GAMES FOR HOURS THAN FIVE MINUTES TALKING ABOUT THAT VAPID SACCHARINE CREATURE 9310060085 931006 RULE OF LAW TRIVIAL PURSUITS AT THE SUPREME COURT BY KENNETH W STARR THE SUPREME COURT BEGAN ITS NEW TERM MONDAY MARKED BY THE ARRIVAL OF JUSTICE RUTH BADER GINSBURG AS THE COURT'S 107TH MEMBER AS USUAL THE COURT ISSUED AN ORDER LIST OF WINNERS AND LOSERS THE WINNERS WERE THE LUCKY FEW WHOSE PETITIONS FOR CERTIORARI WERE GRANTED WITH FULL BRIEFING AND ORAL ARGUMENT TO FOLLOW DURING THE COURSE OF THE TERM THE LOSERS WERE MANY ABOUT 1400 PETITIONS WERE DENIED DWARFING THE 17 GRANTS AS THE PRESS FOCUSES ATTENTION ON THE WINNERS THE LARGE ASSEMBLY OF LOSERS IS QUICKLY FADING INTO THE RANKS OF FORGOTTEN WHATIFS BUT BEFORE THE LOSERS DISAPPEAR INTO THE WOODWORK IT BEARS A BRIEF EULOGY TO THE ARMY OF WHATIFS WHOSE DEMISE REVEALS SO MUCH ABOUT THE MODERN SUPREME COURT AND ITS WORK THE COURT ENJOYS VIRTUALLY UNFETTERED DISCRETION TO SELECT ITS DOCKET AND IN RECENT YEARS INCREASINGLY HAS ABDICATED ITS RESPONSIBILITY TO SELECT FOR PLENARY REVIEW CASES THAT HOWEVER COMPLEX THEY MIGHT BE ARE OF CONSIDERABLE PRACTICAL SIGNIFICANCE TAKE ONE WORLDCLASS LOSER FROM YESTERDAY WHEN JUDGE HAROLD GREENE RESHAPED THE NATION'S TELECOMMUNICATIONS INDUSTRY IN THE EARLY 1980S THE SUPREME COURT WAS GIVEN AN OPPORTUNITY TO REVIEW THE JUDGMENT IT SAID NO EVEN THOUGH AN ENTIRE INDUSTRY WAS AT STAKE ONE THAT AFFECTED EVERY CITIZEN AND BUSINESS THE COURT WAS NOT INTERESTED IN REVIEWING THE CASE ANOTHER LOSER IS THE NATURAL GAS INDUSTRY WHICH THE COURT TOOK A PASS ON IN THE LATE 1980S FEDERAL REGULATORS HAD ISSUED A SERIES OF RULINGS THAT ENTIRELY RESTRUCTURED THAT INDUSTRY YET WHEN LOSERS IN THE COURT OF APPEALS TRIED TO GET THE SUPREME COURT'S ATTENTION THE COURT WITHOUT COMMENT SIMPLY SAID NO THIS WAS NOT ALWAYS SO FOR ONE THING UNTIL 1989 THE SUPREME COURT WAS REQUIRED BY STATUTE TO HEAR MANY MORE CASES THAN IT DOES NOW HISTORICALLY CONGRESS PASSED LAWS GIVING LOSERS IN SOME CASES THE RIGHT TO APPEAL TO THE SUPREME COURT RATHER THAN HAVING TO RELY EXCLUSIVELY ON THE COURT'S GOOD GRACES IN PICKING AND CHOOSING ITS OWN DOCKET FOR EXAMPLE WHEN THE STANDARD OIL CARTEL WAS BROKEN UP EARLY IN THIS CENTURY THE COURT HAD NO CHOICE IT HAD TO HEAR THE OIL COMPANIES' APPEAL FROM THE DISTRICT COURT'S ORDER BREAKING UP THE STANDARD OIL TRUST AND IN THOSE QUIETER DAYS THE COURT TOOK TIME TO FIGURE OUT THE COMPLEXITIES OF THE CASE INSTEAD OF THE PROCRUSTEAN 30 MINUTES PER SIDE THAT THE COURT NOW ALLOWS FOR ORAL ARGUMENT THE STANDARD OIL CASE WAS ARGUED FOR THREE DAYS IN 1910 REARGUED FOR FOUR DAYS IN 1911 AND THEN DECIDED IN A LENGTHY PAINSTAKING OPINION AUTHORED BY THE CHIEF JUSTICE IS THE COURT TOO BUSY HEARING OTHER IMPORTANT CASES TO BOTHER WITH MODERNDAY COUNTERPARTS TO STANDARD OIL OR IS IT MAKING A JUDGMENT THAT CASES OF ENORMOUS PRACTICAL SIGNIFICANCE ARE NOT THE SORT OF WORK THE COURT WITH ITS HEAVY CONSTITUTIONAL LAW DOCKET AND THE NEED TO RESOLVE CONFLICTS AMONG THE VARIOUS COURTS OF APPEALS IS INTENDED TO PERFORM THESE ARE DIFFICULT QUESTIONS BUT THEY ARE NOT UNANSWERABLE WE KNOW THAT THE COURT TAKES THE TIME TO HEAR SOME RATHER STRANGE ISSUES NUDE DANCING AT THE KITTY KAT LOUNGE IN SOUTH BEND IND FOR EXAMPLE WILL CAPTURE THE MODERN COURT'S ATTENTION ONCE THE KITTY KAT'S PROPRIETORS CONTEND THAT THEIR DANCERS' UNDRESS IS CLOTHED IN THE FIRST AMENDMENT ON THE DOCKET THIS TERM IS AN EVEN MORE BIZARRE ISSUE WHETHER A CHILD PORNOGRAPHY AFICIONADO RAN AFOUL OF A FEDERAL CRIMINAL STATUTE BY POSSESSING CHILD PORNO FILMS WITH LITTLE GIRLS' PRIVATE PARTS COVERED IT'S NOT JUST SEX CASES OR FIRST AMENDMENT CASES MORE GENERALLY THAT EXCITE THE COURT'S INTEREST LAST TERM'S EMBARRASSINGLY SKIMPY DOCKET OF 102 CASES DOWN FROM TRADITIONAL LEVELS OF 150 CASES OR MORE INCLUDED SUCH DISTINCTLY TRIVIAL ISSUES AS WHETHER ANTARCTICA IS A FOREIGN COUNTRY FOR PURPOSES OF THE FEDERAL STATUTE THAT ALLOWS INDIVIDUALS TO SUE THE FEDERAL GOVERNMENT FOR TORTS THAT ISSUE ARISES EVERY 20 YEARS OR SO IN LITIGATION SOMEWHERE IN THE US AND TWO COURTS OF APPEALS WERE INDEED IN CONFLICT ON THE SUBJECT BUT THE ISSUE ITSELF IS OF SINGULAR UNIMPORTANCE TO THE NATION AND ITS EVERGROWING BODY OF FEDERAL LAW EVEN THE MORE SERIOUS CASES THAT THE COURT TAKES TEND TO SUFFER FROM BUMPS AND BRUISES INEVITABLY THE COURT WILL HAVE SEVERAL CASES FULLY BRIEFED AND ARGUED FOR THE ALLOTTED ONE HOUR ONLY THEN TO DECIDE THAT THE COURT SHOULD NEVER HAD HEARD THE CASE AT ALL THIS IS KNOWN AS DISMISSING AS IMPROVIDENTLY GRANTED OR MORE COLLOQUIALLY DIGGING THE CASE IN OTHER INSTANCES THE COURT WOULD HAVE BEEN WELL ADVISED TO HAVE DIGED A CASE INSTEAD OF EXPENDING THE RESOURCES NECESSARY TO DECIDE IT FOR EXAMPLE THE FACTINTENSIVE ROBINSONPATMAN CIGARETTEPRICING CASE THAT THE COURT STRUGGLED THROUGH LAST TERM WITH LITTLE OR NO PROFIT TO THE DEVELOPMENT OF THE NATION'S ANTITRUST LAWS THE UNDERLYING SYSTEMIC PROBLEM IS ONE OF MANAGEMENT A LACK OF QUALITY CONTROL IN CASE SELECTION LAST TERM'S PUNITIVE DAMAGES CASE ILLUSTRATES THE POINT THE COURT LED BY JUSTICE O'CONNOR SEEMED POISED TO TAKE A DRAMATIC STEP TO CURB THE PROBLEM OF RUNAWAY PUNITIVE DAMAGES AWARDS THE PROBLEM HOWEVER WAS THAT THE COURT CHOSE A REMARKABLY POOR VEHICLE FOR ADDRESSING THE POINT FEW LAWYERS MUCH LESS BUSINESS EXECUTIVES HAD EVEN HEARD OF THE INTENTIONAL TORT DUBBED SLANDER OF TITLE AN ACT OF GREAT IGNOMINY IN THE MINERALRICH HILLS OF WEST VIRGINIA THEREIN LAY THE RUB THE WINNER IN THE CERTIORARI DERBY TXO PRODUCTIONS HAD COMMITTED JUST SUCH A NASTY DEED ITS LAWYERS' SUCCESS IN ATTRACTING THE COURT'S ATTENTION THEN TURNED THE REST OF THE BUSINESS COMMUNITY INTO CONCERNED BYSTANDERS WHEN THE COURT STRUGGLED WITH THE SINGULARLY ODD FACTS OF THE CASE PUNISHMENT FOR THE DELIBERATE SMEAR OF A LAND TITLE BEARS NO RESEMBLANCE TO THE WORLD OF RUNAWAY SKYROCKETING PUNITIVE DAMAGES AWARDS IN PRODUCT LIABILITY CASES PERHAPS ONE REASON FOR THE COURT'S LACKLUSTER PERFORMANCE IN CASE SELECTION IS ITS DELEGATION OF CRITICAL ELEMENTS OF THE JUDICIAL FUNCTION TO A HIGHLY ABLE BUT JUNIOR GROUP OF LAWYERS THE LAW CLERKS OF THE CERT POOL THIS POOL IS THE PROCESS BY WHICH A SINGLE LAW CLERK PROVIDES EIGHT OF THE NINE JUSTICES WITH A MEMORANDUM RECOMMENDING WHETHER CERTIORARI SHOULD BE GRANTED THAT IS WHETHER THE CASE WARRANTS INCLUSION ON THE COURT'S DOCKET JUSTICE STEVENS IS THE LONE HOLDOUT IN MOST INSTANCES THE MEMORANDUM WILL PROVIDE THE PRIMARY BASIS FOR EIGHT OF THE NINE JUSTICES' VOTES ON THE CRITICAL ISSUE OF WHETHER A CASE SHOULD BE HEARD UNTIL THIS SYSTEM IS CHANGED AND OTHER NECESSARY INNOVATIONS ARE ADOPTED THE COURT WILL LIKELY CONTINUE TO SQUANDER A PRECIOUS NATIONAL RESOURCE THE TIME AND ENERGY OF THE JUSTICES THEMSELVES MR STARR A FORMER FEDERAL JUDGE WAS PRESIDENT BUSH'S SOLICITOR GENERAL 9310060084 931006 DOES THE PRICE OF THE PARROT'S SEAT COME WITH FREQUENT FLIER MILES BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL CONSUMER ADVOCATE DONALD L PEVSNER HAS LONG COMPLAINED THAT AIRLINES CHARGE UNREASONABLE FARES BUT NOW THE MIAMI LAWYER HAS A NEW RALLYING CRY PRICE PARITY FOR PARROTS HIS CRUSADE STARTED WHEN MR PEVSNER BOUGHT A DISCOUNT TICKET FOR HIMSELF BETWEEN MIAMI AND TAMPA BAY FOR 2650 EACH WAY MR PEVSNER PLANNED TO CARRY ON BOARD AN 800 BABY GREEN PARROT AND DELIVER IT TO HIS FIANCEE'S DAUGHTER A STUDENT AT THE UNIVERSITY OF FLORIDA IN GAINESVILLE MR PEVSNER WHO IS TAKING HIS TRIP LATER THIS MONTH ASSUMED HIS PARROT NAMED EDGSBER WOULD TRAVEL FREE BECAUSE THE BIRD WOULD BE TRAPPED IN A SMALL CARRYING KIT AND STOWED BENEATH A SEAT BUT AS FAR AS USAIR IS CONCERNED PARROTS PAY TO FLY AND THEY PAY DEARLY THE FIVEOUNCE BIRD'S TICKET WOULD HAVE COST MR PEVSNER 45 70 MORE THAN HIS OWN SEAT WHICH INCLUDES FREE BEVERAGES AND EVEN THEN EDGSBER WOULD NOT GET ITS OWN SEAT THE ANIMAL NEEDED AN ADVANCE RESERVATION TO BOOT THERE'S NO RATIONALITY IN AIRLINE PRICING FOR PEOPLE AND EVEN LESS FOR A LITTLE BIRDIE MR PEVSNER FUMES THIS IS NOT HOW AN AIRLINE WINS FRIENDS AND INFLUENCES PEOPLE PERHAPS NOT BUT IT'S STANDARD IN THE INDUSTRY MOST CARRIERS CHARGE CUSTOMERS A 45 TO 50 FEE TO CARRY ON A DOG CAT OR HOUSEHOLD BIRD EVEN IF THE ANIMAL DOESN'T DISPLACE A REVENUEPAYING PASSENGER THE AIRLINES WANT TO DISCOURAGE CUSTOMERS FROM HAULING THEIR PETS ON BOARD BECAUSE WE DON'T WANT TO TURN THE CABINS INTO A ZOO SAYS A CONTINENTAL AIRLINES SPOKESWOMAN MOST AIRLINES REQUIRE ADVANCE RESERVATIONS FOR PETS BECAUSE THEY LIMIT THE NUMBER OF ANIMALS PER FLIGHT USAIR A UNIT OF USAIR GROUP INC ONLY PERMITS ONE NONHUMAN IN COACH AND ONE IN THE FIRSTCLASS SECTION OF ITS PLANES A SPOKESWOMAN SAYS THE AIRLINE CARRIES MANY PETS IN CARGO ALSO FOR A FEE BUT LIMITS ONBOARD ANIMALS BECAUSE PASSENGERS MAY BE ALLERGIC TO THEM INSTEAD OF PAYING THE FARE EDGSBER SNUBBED THE AIRLINE AND WENT BY CAR BUT THAT WASN'T WITHOUT ITS OWN PROBLEMS THE BIRD STILL HAS A PROBLEM PERCHING SAYS EDGSBER'S DRIVER A MIAMI COLLEGE STUDENT NAMED BENJAMIN BELIN WHO TRANSPORTED EDGSBER IN THE FRONT SEAT OF A BLUE CHEVY SO IT FELL DOWN OCCASIONALLY 9310060083 931006 LAW LEGAL BEAT FIRMS THAT CIRCULATE NEWSLETTERS VIA COMPUTER MAY FACE LAWSUITS BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL COMPANIES THAT SUBSCRIBE TO NEWSLETTERS AND THEN CIRCULATE THEM VIA INHOUSE COMPUTER DATA BASES MAY BE SETTING THEMSELVES UP FOR COSTLY LAWSUITS COPYRIGHT LAWYERS SAY WHILE MANY BUSINESS PEOPLE KNOW THEY AREN'T ALLOWED TO MAKE MULTIPLE PHOTOCOPIES OF NEWSLETTERS A SURPRISING NUMBER DON'T REALIZE THAT COMPUTER DISTRIBUTION OF SUCH MATERIALS ALSO VIOLATES THE COPYRIGHT LAW THE LAWYERS ADD THIS WOULD BE A FORM OF HIGHTECH COPYING SAYS MICHAEL F CLAYTON WHO COORDINATES THE WASHINGTON INTELLECTUALPROPERTY PRACTICE OF THE LAW FIRM MORGAN LEWIS & BOCKIUS NONETHELESS MR CLAYTON SAYS HE FIELDS AN INCREASING NUMBER OF CALLS FROM CLIENTS WHO WANT TO KNOW WHETHER THERE IS ANY LEGAL OBSTACLE TO STORING AND SHARING NEWSLETTER DATA ELECTRONICALLY OFFICIALS AT ATLAS TELECOM INC DISCOVERED THE ANSWER THE HARD WAY THE PORTLAND ORE SOFTWARE COMPANY LAST WEEK PAID A 100000 SETTLEMENT AFTER ADMITTING THAT IT ELECTRONICALLY DISTRIBUTED ABOUT A DOZEN TELECOMMUNICATIONS NEWSLETTERS FROM PHILLIPS BUSINESS INFORMATION INC THE ATLAS TELECOM CASE IS ONE OF THE FIRST SETTLEMENTS INVOLVING ELECTRONIC COPIES LAWYERS SAY FOR A BUSINESS ENTERING A NEWSLETTER INTO ELECTRONIC MAIL OR A DATABASE SAVES LABOR TIME MONEY AND PAPER BUT FOR PUBLISHERS IT'S A DISTURBINGLY HARDTOTRACK METHOD OF COPYRIGHT INFRINGEMENT COMPANIES THAT WANT TO MAKE LIMITLESS COPIES MAY DO SO LEGALLY ONLY BY BUYING A LICENSE WHICH USUALLY COSTS THOUSANDS OF DOLLARS AS EACH FIRM BEGINS TO DIGITIZE ITS INFORMATION ELECTRONIC DISTRIBUTION WILL BECOME A MUCH MORE COMMON PRACTICE SAYS JAY WARD BROWN AN ATTORNEY WITH WASHINGTON LAW FIRM ROSS DIXON & MASBACK WHICH REPRESENTED PUBLISHERS IN SEVERAL RECENT NEWSLETTERCOPYING CASES INCLUDING THE ATLAS TELECOM SUIT PHILLIPS BUSINESS INFORMATION A UNIT OF PHILLIPS PUBLISHING INTERNATIONAL INC POTOMAC MD ALLEGED IN ITS FEDERALCOURT SUIT IN DELAWARE THAT ATLAS TELECOM IMPROPERLY MADE PAPER AND ELECTRONIC COPIES FOR AT LEAST TWO YEARS ALTHOUGH ATLAS TELECOM HAD ONLY ONE CORPORATE SUBSCRIPTION TO EACH OF THE NEWSLETTERS THE SUIT ALLEGED THE COMPANY ESSENTIALLY MADE HUNDREDS OF COPIES BY PUTTING THE NEWSLETTERS IN THE INHOUSE DATABASE LIKE PROBABLY A LOT OF PEOPLE IN THE US OUR PEOPLE DIDN'T KNOW THAT WHAT THEY WERE DOING WAS WRONG SAYS J BRADFORD SHILEY GENERAL COUNSEL FOR ATLAS TELECOM HE SAYS THE COMPANY HAD PLANNED TO QUIT SUBSCRIBING TO THE PHILLIPS NEWSLETTERS ANYWAY AND WOULD NOW HALT ALL OTHER NEWSLETTER SUBSCRIPTIONS TOO IT'S SO EASY TO VIOLATE THE COPYRIGHT MR SHILEY SAYS ADDING I DON'T SERIOUSLY THINK THAT A LOT OF PEOPLE WERE READING THEM SPECIALTY PUBLISHERS ARE INCREASINGLY AGGRESSIVE ABOUT PROTECTING COPYRIGHTS ON THEIR NEWSLETTERS FOR WHICH THEY COMMONLY CHARGE CUSTOMERS HUNDREDS OF DOLLARS A YEAR THE PUBLISHERS OPENLY PAY BOUNTIES TO INFORMANTS WHO PROVIDE DETAILS ABOUT ILLEGAL COPYING AND IN FACT ATLAS TELECOM WAS SNARED THANKS TO AN OFFER OF A 1000 REWARD SEPARATELY IN JUST THE PAST MONTH PASHA PUBLICATIONS ARLINGTON VA SETTLED WITH TWO ALLEGEDLY INFRINGING COMPANIES FOR A TOTAL OF 123000 IN CASES INVOLVING PHOTOCOPYING RATHER THAN ELECTRONIC DATA BASES LAST YEAR THE PUBLISHER BROUGHT A LAWSUIT IN WHICH A FEDERAL COURT ESTABLISHED APPARENTLY FOR THE FIRST TIME THAT BUSINESSES NEED PERMISSION EVEN TO MAKE A FEW COPIES OF A NEWSLETTER TO DISTRIBUTE INHOUSE THIS PRACTICE OF SUING OUR CUSTOMERS IS DISTASTEFUL IN SOME WAYS BUT UNLESS WE PROTECT OUR COPYRIGHT WE'RE GOING TO LOSE IT SAYS TOD SEDGWICK PASHA'S PUBLISHER MEANWHILE NEWSLETTER OWNERS AND COPYRIGHT LAWYERS ARE CLOSELY WATCHING A TEST CASE BROUGHT BY SIX PUBLISHERS AGAINST TEXACO INC THAT COULD GREATLY WIDEN COPYRIGHT PROTECTION FOR PUBLISHERS IN THAT CASE NOW BEFORE THE FEDERAL APPEALS COURT IN MANHATTAN A LOWER COURT SAID A TEXACO SCIENTIST VIOLATED COPYRIGHT LAW BY PHOTOCOPYING EIGHT JOURNAL ARTICLES FOR HIS PERSONAL RESEARCH FILES TEXACO ARGUES THAT THE COPIES MADE SO THE SCIENTIST COULD WRITE IN MARGINS AVOID TAKING ORIGINALS INTO A MESSY LAB AND SPEED CIRCULATION OF THE JOURNALS TO COLLEAGUES WERE LEGAL BECAUSE OF THE FAIR USE DOCTRINE THE DOCTRINE ALLOWS PHOTOCOPYING FOR RESEARCH AND NONCOMMERCIAL PURPOSES WHO'S NEWS WILLIAM K SLATE II WILL SUCCEED ROBERT COULSON AS PRESIDENT OF THE AMERICAN ARBITRATION ASSOCIATION EFFECTIVE IN APRIL MR COULSON 69 YEARS OLD IS RETIRING AFTER 20 YEARS AS PRESIDENT MR SLATE CURRENTLY IS PRESIDENT OF THE JUSTICE RESEARCH INSTITUTE WHICH DOES MANAGEMENT CONSULTING FOR COURTS AND LEGAL ORGANIZATIONS NO SECRET MARRIAGES A NEW YORK STATE APPEALS COURT HAS RULED THAT A NEWSPAPER CAN OBTAIN THE NAMES OF PEOPLE WHO RECEIVE MARRIAGE LICENSES THE ASSOCIATED PRESS REPORTED THE DEMOCRAT & CHRONICLE AND TIMESUNION NEWSPAPERS OF ROCHESTER NY PUBLISHED BY GANNETT CO ARE SEEKING TO PUBLISH THE NAMES BUT CITY OFFICIALS HAVE ARGUED THAT THE RECORDS ARE CONFIDENTIAL AND PROTECTED BY THE STATE DOMESTIC RELATIONS LAW A LAWYER FOR THE CITY SAID IT MIGHT APPEAL THE RULING 9310060082 931006 SCIENCE IN THE LAB A NOSE KNOWS SECRETS OF BRAIN AND NERVE CELLS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL BALTIMORE WHEN YOU WALK INTO A BAKERY YOUR NOSTRILS FILL WITH THE AROMA OF APPLE TURNOVERS OR FRESHLY BAKED BREAD YET WITHIN MOMENTS THE INTENSITY OF THE SMELL BEGINS TO FADE AND BEFORE LONG THOUGH YOU'RE STILL SURROUNDED BY MOLECULES OF AIR BEARING THE ODOR YOU DON'T SMELL ANYTHING THIS ABILITY OF THE NOSE TO TURN OFF THE SMELL OF AN ODOR WHETHER PLEASANT OR OFFENSIVE IS ONE OF THE BIGGEST MYSTERIES OF THE OLFACTORY SYSTEM SOLVING IT RESEARCHERS SAY WOULD NOT ONLY OFFER A WINDOW ON HOW THE BRAIN PROCESSES INFORMATION BUT IT COULD POINT THE WAY TO NEW STRATEGIES FOR TREATING A VARIETY OF COMMON AND OFTEN DEBILITATING DISEASES SCIENTISTS BELIEVE THE PHENOMENON CALLED DESENSITIZATION IS A SURVIVAL MECHANISM THAT EVOLVED AT BOTH THE CELL AND ORGANISM LEVELS ONCE IT DETECTS AN ODOR AN OLFACTORY CELL FIRES OFF ELECTRICAL MESSAGES TO NOTIFY THE BRAIN BUT A CELL IN A CONSTANT TURNEDON STATE WOULD FIRE UNCONTROLLABLY AND SOON DIE OF EXHAUSTION THAT WOULD BE A PRETTY STUPID THING FOR A CELL TO DO SAYS GABRIELE V RONNETT WHO HEADS A LABORATORY AT JOHNS HOPKINS MEDICAL INSTITUTIONS HERE THAT IS INVESTIGATING HOW OLFACTORY CELLS RESPOND TO ODORS AN ANIMAL FORAGING FOR FOOD REQUIRES THE ABILITY TO CONTINUALLY DETECT SUBTLE CHANGES IN AN ODOR'S INTENSITY TO HOME IN ON HIS TARGET WITHOUT THE ABILITY TO QUICKLY TURN OFF ONE ODORANT SIGNAL TO BE READY FOR THE NEXT THE ANIMAL'S SEARCH WOULD BE HOPELESSLY CONFUSED AND IT WOULD STARVE BUT THIS PROTECTIVE TRAIT ALSO HAS ITS DRAWBACKS ESPECIALLY FOR HUMANS AN ELDERLY PERSON WHOSE OLFACTORY SYSTEM IS ALREADY DESENSITIZED BY THE AGING PROCESS FOR INSTANCE MIGHT FAIL TO SMELL SMOKE OR GAS IN ADDITION DESENSITIZATION ISN'T EXCLUSIVE TO THE NOSE DRUGS USED TO TREAT SUCH AILMENTS AS ASTHMA CONGESTIVE HEART FAILURE PARKINSON'S DISEASE AND ALZHEIMER'S DISEASE WORK ON RECEPTORS IN THE BODY THAT QUICKLY BECOME DESENSITIZED IMPAIRING THE EFFECTIVENESS OF THE MEDICATIONS THUS THE ABILITY TO MANIPULATE THE PROCESS COULD LEAD TO NEW DRUG TREATMENTS OR PERHAPS WAYS TO MAKE CURRENT THERAPIES WORK BETTER AT JOHNS HOPKINS DR RONNETT AND HER COLLEAGUES ARE INVESTIGATING A GROUP OF PROTEINS INCLUDING ONE CALLED BARK2 THAT IT TURNS OUT SHOW UP IN SEVERAL PLACES IN THE BODY THAT ARE PRONE TO DESENSITIZATION THE TEAM IS WORKING IN COLLABORATION WITH DUKE UNIVERSITY RESEARCHERS LED BY ROBERT LEFKOWITZ WHO DISCOVERED BARK OR BETA ADRENERGIC RECEPTOR KINASE AND FASHIONED ANTIBODIES TO TWO VERSIONS OF THE PROTEIN DR LEFKOWITZ FOUND BARK2 IN THE ADRENAL GLANDS WHICH ARE LOCATED ATOP THE KIDNEYS AND AMONG OTHER THINGS HELP REGULATE BLOOD PRESSURE AND INFLUENCE THE ACTION OF DRUGS FOR ASTHMA AND CONGESTIVE HEART FAILURE USING ONE OF DR LEFKOWITZ'S ANTIBODIES LACED WITH A TRACER MOLECULE TO LATCH ON TO BARK2 PROTEINS AND REVEAL THEIR PRESENCE DR RONNETT'S TEAM FOUND THEM IN PLENTIFUL SUPPLY AROUND OLFACTORY TISSUE IN LABORATORY RATS CONCENTRATION WAS PARTICULARLY HIGH IN CILIA THE SENTINEL HAIRLIKE CELLS OF THE OLFACTORY SYSTEM THAT CAPTURE ODORS FROM THE AIR THE QUESTION WAS WHAT DO THEY DO SMELL IS SOMETHING WE ALL TAKE FOR GRANTED DR RONNETT SAYS BUT THE NOSE IS ON THE PERIPHERY OF THE NERVOUS SYSTEM MAKING IT PARTICULARLY FITTING FOR INVESTIGATING HOW NERVE CELLS TRANSMIT INFORMATION MOREOVER ONCE MOST NERVE CELLS DIE OR ARE DAMAGED THEY CAN'T REPAIR OR REPLENISH THEMSELVES THAT'S ONE REASON WHY PEOPLE WITH SAY SPINAL INJURIES OR MAJOR STROKES HAVE SUCH POOR CHANCES OF RECOVERY THE NEAT THING ABOUT THE OLFACTORY SYSTEM IS THAT IT HAS NERVE CELLS THAT REGENERATE THROUGHOUT YOUR LIFE DR RONNETT SAYS A BROAD AIM OF HER RESEARCH IS TO SEE WHETHER OLFACTORY NEURONS OFFER CLUES THAT MIGHT LEAD TO REMEDIES FOR DISEASES OR INJURIES THAT AFFLICT OTHER NERVE CELLS ONE RECENT DAY DR RONNETT'S LAB WAS ALIVE WITH THE GRUNT WORK OF SCIENCE TECHNICIANS PLOPPED CLUMPS OF NASAL CELLS TAKEN FROM RATS INTO LABORATORY DISHES WHICH WERE THEN SUBMERGED IN A DIGESTIVE ENZYME BATH THE ENZYME BREAKS DOWN BONDS THAT TIE CELLS TOGETHER WITHOUT DAMAGING THE CELLS THEMSELVES THE PROCEDURE IS PART OF A PROCESS THAT TOOK A YEAR TO DEVELOP TO CULTURE NASAL CELLS FOR THE LAB'S RESEARCH PROJECTS IN ANOTHER ROOM JANE ROSKAMS A POSTDOCTORAL FELLOW SAT AT A COMPUTER WITH AN XRAY FILM FROM A TEST THAT REVEALED THE SEQUENCE OF THE DNA BUILDING BLOCKS ADENINE THYMINE GUANINE AND CYTOSINEFOR A PROTEIN THE LAB IS STUDYING AS SHE TYPES IN ATA CGA TTA A COMPUTERIZED VOICE BARKS THE LETTERS BACK TO CONFIRM THE ENTRIES ONCE ENTERED THE SEQUENCE CAN BE CROSSCHECKED WITH GENE LIBRARIES FOR MATCHES AS PART OF THE LAB'S EFFORT TO IDENTIFY GENES ASSOCIATED WITH SPECIFIC PROTEINS IN OLFACTORY CELLS RAPID QUENCH SYSTEM MEANWHILE AT A LAB BENCH DONNA JAWORSKY AN UNDERGRADUATE IS WORKING WITH A DEVICE CALLED A RAPID QUENCH SYSTEM TO EXPOSE RAT OLFACTORY NERVE CELLS TO A CITRUS ODOR AND MEASURE THE RESPONSE ON A RECENT EXPERIMENT HER WORK FIGURED PROMINENTLY IN A SIGNIFICANT DISCOVERY ABOUT THE ROLE OF BARK2 WHEN NERVE CELLS DETECT AN ODOR ONE IMMEDIATE RESPONSE IS PROLIFIC PRODUCTION OF A CHEMICAL MESSENGER CALLED CYCLIC AMP OR CAMP THAT HELPS DELIVER INFORMATION ABOUT THE SMELL TO THE BRAIN USING THE RAPID QUENCH SYSTEM THE JOHNS HOPKINS RESEARCHERS FOUND THAT LEVELS OF CAMP DIMINISHED RAPIDLY IN THE PRESENCE OF BARK2 BUT WHEN THEY USED ONE OF DR LEFKOWITZ'S ANTIBODIES TO NEUTRALIZE BARK2 CAMP LEVELS REMAINED ELEVATED IT WAS THE FIRST MAJOR PIECE OF EVIDENCE THAT BARK2 PLAYED A MAJOR ROLE IN DESENSITIZATION SAYS TED DAWSON WHO WAS THE FIRST AUTHOR OF A REPORT ON THE EXPERIMENT THAT APPEARED EARLY THIS YEAR IN THE JOURNAL SCIENCE DR DAWSON IS BRANCHING OFF TO LOOK AT BARK'S EFFECT ON DOPAMINE RECEPTORS WHICH AMONG OTHER THINGS REGULATE THE ACTION OF DRUGS FOR SUCH DISEASES AS PARKINSON'S AND ALZHEIMER'S TURNING THE DISCOVERY INTO NEW THERAPIES WILL TAKE SEVERAL YEARS AND REQUIRE NEW UNDERSTANDINGS OF HOW SEVERAL OTHER PROTEINS CONTRIBUTE TO DESENSITIZATION AS THEY PURSUE THE QUESTIONS DR RONNETT'S TEAM LIVES DAILY WITH THE KNOWLEDGE THEY ARE ON TO SOMETHING THEY NO LONGER CAN SMELL THE CITRUS ODORANT THEY USE IN CONDUCTING THEIR EXPERIMENTS 9310060081 931006 CREDIT MARKETS BONDS GET LITTLE ACTION AS TRADERS INVESTORS WITHHOLD JUDGMENT UNTIL JOB FIGURES ARRIVE BY THOMAS D LAURICELLA AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK TRADERS AND INVESTORS MARKED TIME YESTERDAY AHEAD OF KEY EMPLOYMENT FIGURES DUE AT THE END OF THE WEEK LEAVING PRICES OF TREASURY SECURITIES LITTLE CHANGED ON LIGHT TRADING THE BENCHMARK 30YEAR TREASURY BOND FELL LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH 1000 FACE VALUE TO 103 9/32 WHILE THE YIELD REMAINED UNCHANGED AT 6 THE 10YEAR NOTE WAS UNCHANGED AT 103 3/32 TO YIELD 533 WE WENT UP A BIT ON LIGHT VOLUME RAN OUT OF STEAM AND CAME OFF SAID LAWRENCE LEUZZI HEAD OF GOVERNMENT SECURITIES TRADING AT SG WARBURG & CO THERE WASN'T ANY ONE EVENT THAT WAS DRIVING THE MARKET THE ONE BIT OF NEWS WAS THE TREASURY DEPARTMENT'S ANNOUNCEMENT THAT IT WAS BOOSTING THE SIZE OF THE NEXT WEEK'S THREEMONTH AND SIXMONTH BILL AUCTIONS BY 2 BILLION TO 256 BILLION THAT RISE WAS LARGELY UNEXPECTED BECAUSE IT FOLLOWED LAST WEEK'S 12 BILLION INCREASE IN THE WEEKLY OFFERING ANALYSTS SAID THE PACE AT WHICH TREASURY HAS BUMPED UP THE BILL AUCTIONS OVER THE LAST TWO WEEKS REFLECTS A LARGER UNDERLYING NEED BY THE GOVERNMENT TO RAISE MORE CASH IN THE FOURTH QUARTER AT THE SAME TIME AS IT WILL HAVE TO CONTEND WITH TWO GAPS IN ITS FINANCING SCHEDULE THE QUARTER WILL MARK THE FIRST IN WHICH NEITHER THE SEVENYEAR NOTE NOR THE 30YEAR BOND WILL BE AUCTIONED OVERALL TREASURYS REMAINED CONFINED TO NARROW WELLDEFINED TRADING RANGES YESTERDAY THE MARKET IS JUST MARKING TIME WITH THE BOND HOVERING AROUND 6 UNTIL WE SEE THE JOBS REPORT FRIDAY AND THE INFLATION NUMBERS NEXT WEEK SAID MR LEUZZI OF WARBURG HOWEVER SOME CONTEND IT WAS MORE THAN JUST A RELUCTANCE AMONG TRADERS AND SPECULATIVE ACCOUNTS TO MAKE BIG BETS AHEAD OF THE JOBS DATA THEY ARGUE THAT A MAJOR FACTOR CONTRIBUTING TO THE MARKET'S LISTLESSNESS HAS BEEN A SHIFT AMONG MANY PORTFOLIO MANAGERS TO A NEUTRAL STANCE FROM A MORE BULLISH POSTURE INSTITUTIONAL INVESTORS HAVE STARTED TO BECOME A LITTLE BIT DEFENSIVE ESPECIALLY SINCE THE UPWARD MOMENTUM ON THE MARKET HAS WANED MR LEUZZI SAID PART OF THE REASON THAT MANY INVESTORS HAVE HEADED TO THE SIDELINES IS A SENSE THAT THE ECONOMY MAY BE ON THE VERGE OF PICKING UP STEAM A LOT OF PEOPLE ARE STARTING TO THINK THE FOURTH QUARTER IS GOING TO BE AN IMPROVEMENT FROM THE FIRST HALF OF THE YEAR AND FROM THE THIRD QUARTER SAID DAVE CAPURRO PORTFOLIO MANAGER AT THE FRANKLIN/TEMPLETON GROUP BUT PETER VAN DYKE A MANAGING DIRECTOR AT T ROWE PRICE ARGUED THAT THERE WAS LITTLE REASON FOR INVESTORS TO EXPECT THE ECONOMY TO IMPROVE TO SUCH A ROBUST RATE THAT INFLATION PRESSURES WILL EMERGE MATTHEW ALEXY MARKET STRATEGIST AT FIRST BOSTON CORP ALSO SAID INVESTORS SHOULDN'T EXPECT SIGNIFICANTLY FASTER GROWTH AND PORTFOLIO MANAGERS WHO HAVE SHIFTED BACK TO A NEUTRAL POSTURE RISK FALLING FAR BEHIND THE MARKET IF THE ECONOMY DOESN'T KICK INTO HIGHER GEAR HE SAID IT WOULDN'T EVEN TAKE A SLOWDOWN IN ACTIVITY TO SPARK ANOTHER LEG DOWN IN INTEREST RATES MR ALEXY SAID FURTHER SIGNS OF SLOW GROWTH AND MODEST INFLATION WOULD PROBABLY BE ENOUGH I THINK THE RISK IS THAT INTEREST RATES RATCHET DOWN AGAIN RATHER THAN RATCHET UP TOWARD A 625 YIELD ON THE 30YEAR TREASURY BOND MR ALEXY SAID IN FACT THE BOND COULD BE YIELDING 55 BY YEAR END HE SAID THE CORPORATE BOND MARKET WAS RELATIVELY ACTIVE DURING TUESDAY'S SESSION AS SLIGHTLY MORE THAN 1 BILLION OF PAPER CAME TO THE MARKET PACIFIC BELL A UNIT OF PACIFIC TELESIS GROUP CAME TO MARKET WITH AN UNUSUALLY STRUCTURED 550 MILLION BOND OFFERING AT 96523 TO YIELD 688 THE TELEPHONE COMPANY ISSUED 41YEAR DEBENTURES NOT CALLABLE FOR 20 YEARS ARKANSAS POWER & LIGHT CO A UNIT OF ENTERGY CORP HELD A COMPETITIVE BID FOR 155 MILLION OF DEBT AND AMR CORP PRICED TWOYEAR DEBT WITH A COUPON THAT FLOATS OVER THE LONDON INTERBANK OFFERED RATE HOWEVER NEW YORK TELEPHONE CO A UNIT OF NYNEX CORP DECIDED AGAINST HOLDING ITS EXPECTED COMPETITIVE BID BECAUSE OF MARKET CONDITIONS A COMPANY SPOKESMAN SAID NO NEW ISSUANCE DATE HAS BEEN SET MOODY'S ANNOUNCED YESTERDAY THAT IT WAS PLACING THE DEBT RATINGS OF NYNEX UNDER REVIEW FOR POSSIBLE DOWNGRADE SOME 31 BILLION OF DEBT IS AFFECTED THE RATING AGENCY SAID THAT THE REVIEW IS CONCURRENT WITH NYNEX'S ANNOUNCEMENT OF A 12 BILLION INVESTMENT IN VIACOM INC NYNEX'S BONDS HOWEVER DIDN'T TRADE DOWN ON THE NEWS AS MOST MARKET PLAYERS ASSUMED THAT PHONE COMPANIES WOULD BE PARTICIPATING IN THE ACQUISITIONS INVOLVING LEVERAGE ONE TRADER SAID NYNEX'S DEBENTURES AND MEDIUMTERM NOTES ARE RATED SINGLEA2 MUNICIPAL BONDS HELD UP PRETTY WELL AGAINST THE DEBUT OF MORE THAN 1 BILLION OF NEW BONDS PRICES OF ACTIVELY TRADED ISSUES WERE GENERALLY 1/4 LOWER TO 1/4 HIGHER THE NEW YORK STATE POWER AUTHORITY'S 525 OF 2018 GENERALPURPOSE REFUNDING BONDS WERE UNCHANGED AT 99 1/4 TO 99 1/2 YIELDING 529 THIS SESSION'S NEW SUPPLY WAS DOMINATED BY NEW YORK CITY'S 5747 MILLION FISCAL 1994 SERIES C FIXEDRATE GENERAL OBLIGATION BONDS WHICH WERE BROUGHT TO THE MARKET BY A LEHMAN BROTHERS GROUP THE FIXEDRATE BONDS WHICH HAVE YIELDS THAT RANGE FROM 35 IN 1995 TO 58 IN 201422 ARE OVERSUBSCRIBED DUE TO HEARTY BUYING BY INSTITUTIONS AND INDIVIDUAL INVESTORS SAID STANLEY CIEMNIECKI MANAGER OF NATIONAL UNDERWRITING AT LEHMAN BROTHERS NEW YORK CITY'S 253 MILLION FISCAL 1994 SERIES C ADJUSTABLERATE BONDS WHICH HAVE A MATURITY OF OCT 1 2023 ARE EXPECTED TO BE PRICED EARLY NEXT WEEK LEHMAN BROTHERS SAID THE ADJUSTABLERATE BONDS ARE BACKED BY A LETTER OF CREDIT FROM NORINCHUKIN BANK'S NEW YORK BRANCH MORTGAGE SECURITIES TRADED AT FLAT OR SLIGHTLY LOWER LEVELS THROUGHOUT TUESDAY'S SESSION GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 6 ISSUES FOR OCTOBER DELIVERY WERE OFF 6/32 AT 99 7/32 TO YIELD 614 THAT YIELD IS 079 PERCENTAGE POINT ABOVE THE COMPARABLEMATURITY 10YEAR TREASURY NOTE THE QUIET TRADING REFLECTED THE IMPASSE AMONG DEBT DEALERS AND INVESTORS ON WHERE INTEREST RATES ARE HEADED WHILE FEW ARE BETTING THE ECONOMY IS ABOUT TO SOAR THERE ARE FEARS THAT RATES AT THE LONG END OF THE TREASURY YIELD CURVE HAVE HIT THEIR LOWS AND WILL START TO RISE THAT COULD BE GOOD FOR MORTGAGE INVESTORS BECAUSE SUCH A MOVE SHOULD STANCH THE WAVE OF HOMEOWNER REFINANCINGS THAT HAVE LED TO THE EARLY CALL OF SO MANY MORTGAGE SECURITIES IN THE PAST COUPLE OF MONTHS AND THE GOVERNMENT ON FRIDAY RELEASES ITS REPORT ON PAYROLL EMPLOYMENT FOR SEPTEMBER WALL STREET ECONOMISTS PREDICT THE REPORT WILL SHOW A GAIN OF ABOUT 150000 IN NONFARM EMPLOYMENT THAT WOULD FOLLOW A 39000 DECLINE IN NONFARM JOBS IN AUGUST AMONG PRICES OF OTHER 6 COUPONS FOR OCTOBER DELIVERY FEDERAL HOME LOAN MORTGAGE CORP GOLDS AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES WERE BOTH OFF 1/8 POINT AT 98 28/32 AND 98 25/32 RESPECTIVELY 9310060078 931006 BIG BOARD SEATS FETCH 770000 NEW YORK THE NEW YORK STOCK EXCHANGE SAID TWO SEATS SOLD FOR 770000 DOWN 5000 FROM THE PREVIOUS SALE SEPT 8 SEATS ARE CURRENTLY QUOTED AT 605000 BID AND 825000 MILLION OFFERED 9310060077 931006 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL APPLE LOSES A BATTLE IN TAX ARBITRATION BUT WINS THE WAR THE JUDGE SAYS ORIGINALLY APPLE PUT ITS COSTS AT 131 MILLION THE IRS ARGUED THE FAIR VALUE WAS ONLY 163 MILLION THAT WOULD MAKE APPLE'S TAXABLE INCOME FROM RESALES IN THE US FAR HIGHER BASEBALLTYPE ARBITRATION ADOPTED BY THE PARTIES IN MARCH 1992 REQUIRED EACH TO OFFER A NEW ALTERNATIVE FOR EACH YEAR AND TO ACCEPT A CHOICE OF ONE OR THE OTHER APPLE'S TAX DIRECTOR JOHN BRENNAN SAYS THAT PROCESS MOVES THE PARTIES TOWARD A COMPROMISE AND MAY KNOCK TWO OR THREE YEARS OFF LENGTHY AND COSTLY LITIGATION THE ARBITRATORS WERE A RETIRED JUDGE AN INDUSTRY EXPERT AND AN ECONOMIST INTEREST EARNED ON US SERIES EE BONDS BOUGHT AFTER 1989 AND REDEEMED TO PAY HIGHEREDUCATION COSTS MAY BE TAXFREE ON CERTAIN CONDITIONS ONE RULE PHASES OUT THE BENEFIT IF MODIFIED ADJUSTED GROSS INCOME TOPS THRESHOLDS THAT ARE RESET ANNUALLY TO REFLECT INFLATION THE 1993 LEVELS ARE 68250 FOR COUPLES FILING JOINTLY AND 45500 FOR SINGLE FILERS BUT THE 1993 TAX ACT UPSETS FUTURE INDEXING AND LOWERS THE 1994 THRESHOLDS INSTEAD OF RAISING THEM FEWER TAXPAYERS WILL QUALIFY INSTEAD OF MORE STANLEY BAGINSKI OF RESEARCH INSTITUTE OF AMERICA FIGURES THE 1994 THRESHOLDS WILL FALL TO 61850 FOR COUPLES AND 41200 FOR SINGLES THE REASON IS THAT THE ACT INADVERTENTLY CHANGES THE BASE YEAR FOR THE INDEXING CALCULATION TO 1992 FROM 1989 CONGRESSIONAL STAFFERS THINK THE ERROR REQUIRES A TECHNICAL CORRECTION THROUGH LEGISLATION A 64 BILLION QUESTION HOW ABOUT ANOTHER TAX BILL ALL THE CHIPS HAVEN'T LANDED YET FROM PRESIDENT CLINTON'S FIVEYEAR DEFICITHACKING PACKAGE OF 241 BILLION IN NET TAX INCREASES BUT HOUSE WAYS AND MEANS MEMBERS ARE PLUGGING FOR A BILL WITH FIVEYEAR TAX BREAKS OF 64 BILLION FOR COUNTLESS SPECIAL INTERESTS THE LEGISLATORS PROPOSE LESS THAN 2 BILLION IN OFFSETTING TAX INCREASES THERE'S A LOT OF MEMBERS DREAMING AROUND HERE REP MCDERMOTT D WASH SAYS CONGRESS HAS NO APPETITE FOR MORE TAX INCREASES SO THE BILL SEEMS BRAINDEAD BUT AN INSIDER SAYS PANEL MEMBERS MAY NOT PULL THE PLUG FOR QUITE A WHILE THE PROSPECT OF SPECIAL DEMANDS FROM MEMBERS DIMS HOPES OF FASHIONING A BILL TO FIX ERRORS IN PAST TAX ACTS AND TO TAKE UNCONTROVERSIAL STEPS TO WARD TAX SIMPLIFICATION STILL SENATE FINANCE CHAIRMAN MOYNIHAN D NY ISN'T WAITING TO TRY TO SIMPLIFY THE NANNY TAX HE PLANS TO HAVE THE COMMITTEE WRAP UP THIS MONTH A PACKAGE OF SOCIAL SECURITY BILLS THAT INCLUDE REVISION OF THOSE RULES FOR EMPLOYERS OF DOMESTIC WORKERS HARD KNOCKS WERE HARDLY ENOUGH SCHOOLING FOR GWENDOLYN LEE HOOKS OF KANSAS CITY MO A TEACHER WHO EARNED 21186 IN 1989 SHE SOUGHT TO DEDUCT 8880 ALLEGEDLY PAID FOR MONTHLY LESSONS ON THE TAX CODE BUT THE TAX COURT RULED THAT THE LESSONS WERE NONDEDUCTIBLE EDUCATION NOT DEDUCTIBLE AID TO PREPARE HER RETURN ROBERTO C POLO AN ARTINVESTMENT ADVISER WHO WAS EXTRADITED TO SWITZERLAND IN AUGUST TO FACE EMBEZZLEMENT CHARGES HAD ANOTHER SETBACK THE TAX COURT THREW OUT HIS APPEAL OF AN IRS CLAIM FOR 258 MILLION IN TAX ON ALLEGED THEFTS FROM CLIENTS THE COURT SAID POLO DIDN'T COMPLY WITH ITS PRETRIAL ORDERS HE DENIES ANY WRONGDOING DEATH AND TAXES AND UNCERTAINTY THE 1993 TAX ACT BARS RELEASE OF FEDERAL RETURN DATA TO STATES THAT DON'T GIVE CERTAIN DEATHCERTIFICATE INFORMATION TO FEDERAL AGENCIES TO HELP BLOCK ERRONEOUS BENEFITS TO THE DEAD THE LAW GIVES STATE LEGISLATURES TIME TO CLEAR UP THE EXCHANGES OF DATA EARLIER THIS YEAR VOTERS REJECTED PROPOSALS TO RAISE THE SALES TAX AND LOWER PROPERTY TAXES IN MICHIGAN TO INSTITUTE A 4 SALES TAX IN MONTANA AND TO REVAMP TAX FINANCING FOR SCHOOLS IN TEXAS NOR ARE MANY CHANGES IN STATE TAXES AND SPENDING LIKELY TO RESULT FROM CONSTITUTIONAL AMENDMENTS AND OTHER REFERENDUMS AT STAKE IN THE FALL ELECTIONS THE FIRST VOTE COMES OCT 16 IN LOUISIANA WHERE FOUR PROPOSALS TO LIMIT OR CONTROL STATE DEBT ARE ON THE BALLOT ON NOV 2 CALIFORNIANS VOTE ON A SALES TAX TO FUND PUBLICSAFETY SERVICES COLORADANS ON TOURISMPROMOTION TAXES AND TEXANS ON REQUIRING VOTER APPROVAL OF ANY PERSONAL INCOME TAX TEXAS HAS NONE NOW WASHINGTON VOTERS WILL CONSIDER BIDS TO ROLL BACK 1993 TAX RISES AND LIMIT FUTURE INCREASES ON NOV 9 OREGONIANS FACE PROPOSALS FOR A NEW SALES TAX REVAMPED PROPERTY TAXES AND A LIMIT ON STATE SPENDING FIVE STATES SEEK APPROVAL TO ISSUE BONDS FOR VARIOUS PURPOSES ACCORDING TO PUBLISHER COMMERCE CLEARING HOUSE BRIEFS IRS ANNOUNCEMENT 93133 TELLS FISCALYEAR CORPORATIONS HOW TO FIGURE FISCAL1993 TAXES BY BLENDING HIGHER RATES FOR CALENDAR 1993 WITH 1992 RATES THE ANNOUNCEMENT EXPLAINS HOW TO GET WAIVERS OF PENALTIES FOR UNDERPAYMENTS OF CORPORATE ESTIMATED TAXES CAUSED BY THE 1993 TAX ACT 9310060076 931006 A SHEEPISH HOUND BECOMES A REAL BEAR WHEN PREDATORS CALL THE AKBASH JOINS THE PACK OF IMPORTED DOGS HELPING HERDERS TRIM STOCK LOSSES BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL ABSAROKA WILDERNESS MONT IN A COLD MOONLIT MEADOW A HERD OF SHEEP SLEEPS PEACEFULLY BODIES WOVEN INTO A VAST CREAMCOLORED BLANKET SUDDENLY THE ANIMALS ROUSE TO A FRIGHTENING PRESENCE GRIZZLY THEY FLEE 1200 STRONG IN A THUNDER OF HOOVES ACROSS THE HIGHMOUNTAIN PASTURE BUT THE BEAR LOOKING FOR A MEAL OF MUTTON HASN'T COUNTED ON DUCHESS A STOCKY 100POUND WHITE AKBASH GUARD DOG SHE SLIPS BARKING AND BRISTLING THROUGH THE HERD FOR A CLOSE ENCOUNTER WITH THE BEAR THE SNARLING GRIZZLY THINKS IT OVER THEN GRUMPILY RETREATS LAST NIGHT IF DUCHESS WASN'T THERE THERE WOULD HAVE BEEN A KILL SAYS PASCAL WICK WHO HERDS SHEEP AS A HOBBY DUCHESS WHOSE PAST LIES IN TURKEY IS AMONG A GROWING NUMBER OF IMPORTED LIVESTOCK GUARD DOGS PERHAPS NUMBERING 4000 NOW WATCHING OVER US SHEEP AND CATTLE HERDS THEIR PERFORMANCE MAY HELP DECIDE THE FUTURE OF GRAZING ACROSS VAST STRETCHES OF FEDERAL LAND ESPECIALLY WILDERNESS LANDS LIKE THESE HIGHCOUNTRY PASTURES NEAR YELLOWSTONE NATIONAL PARK A DECADESLONG EXPENSIVE US GOVERNMENT EFFORT TO THWART PREDATORS USING POISONS FENCES TRAPS AND GUNS HAS PRODUCED ONLY LIMITED RESULTS INDEED WESTERN RANCHERS ALONE LOST MORE THAN 420000 SHEEP TO COYOTES DOGS BEARS AND MISCELLANEOUS PREDATORS LAST YEAR MORE RECENTLY INCREASINGLY TOUGH ENVIRONMENTAL AND CONSERVATION LAWS HAVE SEVERELY CURBED RANCHERS' ABILITIES TO COMBAT CERTAIN PREDATORS AS AN ENDANGERED SPECIES FOR EXAMPLE THE GRIZZLY CAN'T BE KILLED EXCEPT IN SELFDEFENSE FOR RANCHERS LIKE 72YEAROLD TEDDY THOMPSON WHO HAS BEEN GRAZING SHEEP HERE SINCE HIS BOYHOOD THE GRIZZLY IS A MARKET FORCE AS DAUNTING AS LOW LAMB PRICES WITHOUT ADEQUATE PREDATOR CONTROL GRAZING IS UNECONOMICAL YET HARMING A BEAR FOR THE SAKE OF SHEEP IS THESE DAYS SIMPLY POLITICALLY AND LEGALLY UNACCEPTABLE HE CONCEDES CONSIDERING THAT 5000 RANCHERS HOLD PERMITS TO GRAZE SHEEP ON FEDERAL LANDS IN THE WESTERN US THE STAKES ARE HIGH IF PUSH COMES TO SHOVE THE SHEEP WILL HAVE TO GO AND THE BEAR WILL HAVE IT SAYS JEFFREY GREEN A WILDLIFE BIOLOGIST WITH ANIMAL DAMAGE CONTROL A DIVISION OF THE AGRICULTURE DEPARTMENT HENCE THE GROWING INTEREST IN GUARD DOGS LONG USED TO PROTECT SHEEP IN EUROPE AND ASIA AND IN THE US BY THE NAVAJO INDIANS SOME OF THESE DOGS THE GREAT PYRENEES FOR EXAMPLE HAVE LONG BEEN IMPORTED TO THE US AS PETS OTHERS INCLUDING THE SHAR PLANINETZ A YUGOSLAV HOUND THE KOMONDOR A HUNGARIAN DOG AND THE TURKISH AKBASH WERE LITTLE KNOWN OUTSIDE THEIR NATIVE RANGES UNTIL THEY BEGAN TO TRICKLE ONTO US RANCHES IN THE LATE 1970S UNLIKE HERDING DOGS THE SOCIABLE ENERGETIC SCOTTISH BORDER COLLIE FOR INSTANCE GUARD DOGS TEND TO BE MOPEY OR SURLY LONERS WHO SHOW LITTLE INTEREST IN MOVING LIVESTOCK ABOUT BUT GUARD DOGS DO SHARE TWO CHARACTERISTICS A PREDISPOSITION TO BOND WITH THE LIVESTOCK THEY TEND AND IMPLACABLE COURAGE IN THE FACE OF AN INTRUDER AND WHILE ALL GUARDDOG BREEDS HAVE SHOWN EFFECTIVENESS AGAINST COYOTES FOXES AND BOBCATS ONLY THE AKBASH HAS EARNED A REPUTATION AS A DOG ROUTINELY WILLING TO STAND UP TO BEARS YOU WOULD NEVER KNOW IT BY LOOKING AT ONE AKBASH HAVE LONG FLOPPY EARS AND ARE COMICALLY PASSIVE AROUND SHEEP LOWERING THEIR HEADS IN SUBMISSION AS THEY WALK WITH THE HERD BUT THE AKBASH CHANGES ABRUPTLY WHEN FACING A PREDATOR IT RAISES ITS HEAD AND TAIL TO LOOK BIGGER BARKS AUTHORITATIVELY AND WITH QUICK SPEED MOVES IN ON THE INTRUDER SNAPPING AT ITS HEELS SOME AKBASH ARE SO FAST AND STRONG THAT THEY HAVE BEEN KNOWN TO CATCH COYOTES AND FLIP THEM IN THE AIR LIKE TOYS THE FIRST AKBASH WAS BROUGHT TO THE US IN 1978 BY A FOREIGNSERVICE OFFICER AND DOG BREEDER WHO LEARNED OF THE DOG'S ANCIENT AND FEARSOME REPUTATION FOR DEFENDING HERDS FROM MARAUDING WOLVES BEARS AND MOUNTAIN LIONS THE DOGS REMAIN RARE HERE THERE ARE ABOUT 850 OF THEM AND ARE RELATIVELY EXPENSIVE COSTING 500 APIECE IF MR WICK THE SHEEPHERDER HAS HIS WAY THERE WILL BE MORE IT WAS MR WICK A CONSULTANT FOR THE WORLD BANK WHO INTRODUCED MR THOMPSON TO HIS AKBASH AS PART OF HIS STUDY TO DETERMINE WHETHER THE DOG COULD INDEED LIVE UP TO ITS REPUTATION AS A BEAR FOIL MR WICK A FRENCHMAN AND AVID SHEEPHERDER HAS HIS OWN AGENDA THE FRENCH GOVERNMENT WANTS TO REINTRODUCE THE EUROPEAN GRIZZLY TO SHEEPRICH AREAS OF THE ALPS MR WICK'S EXPERIENCE HERE SHOULD HELP DETERMINE WHETHER THE AKBASH COULD ALLAY CONCERNS BY SHEPHERDS THERE FOR MR THOMPSON WHOSE HERD JOURNEYS 60 MILES FROM HIS RANCH NEAR BIG TIMBER TO REACH THIS WILDERNESS AREA EACH SUMMER THE AKBASH MAY BE HIS LAST CHANCE AT STAYING IN THE SHEEP BUSINESS DURING WORLD WAR II SOME 25 TO 30 BANDS OF SHEEP WERE HERDED UP INTO THESE MOUNTAIN VALLEYS NORTH OF YELLOWSTONE NATIONAL PARK BUT ENVIRONMENTAL AND ECONOMIC PRESSURES HAVE LEFT MR THOMPSON'S HERD THE REMAINING HOLDOUT TWO YEARS AGO HIS HERD WAS ATTACKED SEVERAL TIMES AND HE LOST ABOUT 20 LAMBS AND EWES TO COYOTES AND ANOTHER 20 TO BEARS ATOP WEAKENING PRICES THE PREDATION WAS ON THE VERGE ON DRIVING HIM OUT OF BUSINESS BUT FOR THE PAST TWO SUMMERS WITH AKBASH DOGS PROTECTING THE HERD LOSSES HAVE DWINDLED THIS YEAR THE DOGS HAVE FENDED OFF ALL COYOTE ATTACKS AND ALL BUT TWO BEAR RAIDS IF THE DOGS CONTINUE TO PERFORM WELL AND A BEAR ISN'T HURT OR KILLED MR THOMPSON THINKS THESE SHEEP DRIVES TO HIS CHILDHOOD PASTURES MAY BE PRESERVED IF I DIDN'T COME UP HERE HE SAYS I'D FEEL THERE WAS SOME KIND OF VOID AS DUSK FALLS OVER THE HERD ONE RECENT LATE SUMMER NIGHT TWO BORDER COLLIES HELP MR WICK MOVE THE SHEEP TO THE NIGHT'S BED GROUND DUCHESS WHO HAS BEEN SLEEPING AMONG THE HERD MOST OF THE DAY MOVES QUIETLY WITH THEM BUT WHEN MR WICK CLIMBS INTO HIS TEPEE TO SLEEP DUCHESS GOES ON A RESTLESS VIGIL THE NIGHT BEFORE SHE CONFRONTED A GRIZZLY 150 YARDS AWAY NEXT TO A CLUMP OF PINES BARING HER FANGS AND BARKING VICIOUSLY SHE DARTED BACK AND FORTH JUST OUT OF REACH OF THE BEAR'S RAZOR CLAWS FINALLY AFTER A LONG MINUTE MR WICK SHONE HIS FLASHLIGHT ON THE BEAR WHICH TURNED AND FLED TONIGHT HER ENCOUNTER WITH THE GRIZZLY TAKES PLACE OUT OF SIGHT BUT NOT OUT OF MR WICK'S HEARING AFTER A QUICK PITCHED GROWLING MATCH THE BEAR FLEES MR WICK INVESTIGATING LATER FINDS FRESH BEAR TRACKS STILL QUESTIONS REMAIN ABOUT THE AKBASH FOR ONE WHILE THE DOGS BOND WELL WITH SHEEP THEY DON'T ALWAYS LIKE HUMANS MAKING THEM DIFFICULT TO CONTROL DUCHESS'S PARTNER GRIZ FOR EXAMPLE RECENTLY DISAPPEARED AND WAS LATER SPOTTED GUARDING SHEEP IN A PASTURE WHERE HE DIDN'T BELONG AND EVEN DUCHESS ISN'T FOOLPROOF ONE RECENT FOGGY MORNING A GRIZZLY APPROACHED THE HERD UPWIND MR WICK RECALLS THE SHEPHERD GRABBED HIS RIFLE AND SILENTLY SKIRTED THE HERD THROUGH THE TREES HE STEPPED ON A TWIG AND THE BEAR SPOTTED HIM THEIR EYES LOCKED FOR A SECOND THEN THE BEAR LOPED OFF INTO THE WOODS DUCHESS SLEPT THROUGH THE INCIDENT 9310060075 931006 WHO'S NEWS MIDLANTIC CORP MIDLANTIC CORP EDISON NJ MARCY SYMS 42 YEARS OLD WAS ELECTED A DIRECTOR OF THIS BANK HOLDING COMPANY INCREASING THE BOARD TO 18 MS SYMS IS PRESIDENT AND CHIEF OPERATING OFFICER OF SYMS CORP AN OFFPRICE RETAILER OF CLOTHING AND ACCESSORIES 9310060074 931006 REVIEW & OUTLOOK EDITORIAL MORE THAN MOGADISHU WHEN THE DUST SETTLED SUNDAY AFTER AN INCREDIBLE SEVENHOUR SHOOTOUT WITH SOMALI WARLORD MOHAMED AIDID'S GUNMEN 12 AMERICAN GIS LAY DEAD 78 WERE WOUNDED ONE WAS DRAGGED DEAD THROUGH A MOB OF CHEERING PEOPLE AND CAPTURED CHIEF WARRANT OFFICER MIKE DURANT WAS DISPLAYED ON TV CUT AND DAZED NATURALLY PEOPLE WANT TO KNOW WHAT IN BLAZES IS GOING ON HERE GOOD QUESTON WE SUSPECT THE QUICK ANSWER IS THAT NEITHER UN SECRETARY GENERAL BOUTROS BOUTROSGHALI NOR ANYONE IN THE CLINTON ADMINISTRATION KNOWS PRECISELY WHAT GOAL IS BEING PURSUED IN SOMALIA THE ORIGINAL PURPOSE OF THE MISSION WAS HUMANITARIAN AND FAMINE HAS INDEED BEEN ALLEVIATED IN THE COUNTRYSIDE BUT SOMEHOW THE MISSION HAS EXPANDED EVEN AS THE FORCE COMMITTED HAS BEEN REDUCED THE PURPOSE NOW SEEMS TO BE LESS FEEDING THE STARVING THAN FEEDING THE IMPORTANCE OF THE UNITED NATIONS THE SITUATION CALLS FOR EITHER GIVING THIS EFFORT SOME SENSIBLE GOAL OR BRINGING IT TO A DIGNIFIED CONCLUSION THAT SAID SECRETARY OF STATE WARREN CHRISTOPHER HAD IT EXACTLY RIGHT YESTERDAY WHEN HE ASSERTED IT CERTAINLY IS NOT TIME FOR US TO DEPART IT'S TIME RATHER FOR A DEMONSTRATION THAT THE US WILL RESPOND WHEN ITS REPRESENTATIVES ARE DESECRATED FOR THE UNITED STATES TO CUT AND RUN FROM AIDID'S THUGS AND MOGADISHU'S STREET MOBS IS UNTHINKABLE IT WOULD MAKE A HASH OF US LEADERSHIP IN FUTURE BRUSHFIRES WHAT'S LESS CLEAR IS WHETHER BILL CLINTON WILL CUT AND RUN FROM BOBBY BYRD AND HIS RANTING FRIENDS ON THE REPUBLICAN SIDE OF THE AISLE SENATOR BYRD THE APPROPRIATIONS CHAIRMAN IS LIKELY THIS WEEK TO STAGE A VOTE TO CUT OFF FUNDS FOR THE SOMALI EFFORT WITH THE TV IMAGES FRESH AMID CAPITOL PANIC IT MAY PASS THAT TOO SHOULD BE UNTHINKABLE IT WOULD MAKE A HASH OF MR CLINTON'S PRESIDENCY BILL CLINTON HAS ARRIVED AT THE SAME WATERSHED EVENTUALLY FACED BY ALL PRESIDENTS EITHER HE PROTECTS AND USES HIS AUTHORITY AS COMMANDER IN CHIEF OR A COMMITTEE OF 535 ARMCHAIR GENERALS WILL FILL THE VACUUM THEY'RE NOT GOOD AT IT CONGRESS DOESN'T CREATE FOREIGN POLICY IT VETOES IT AS WOULD THE BYRD AMENDMENT TO DEFEAT THIS KNEEJERK ASSAULT ON HIS AUTHORITY MR CLINTON WILL HAVE TO DISPEL A FOG BANK OF HIS OWN MAKING THAT IS THE SHAPELESS NOTION OF PEACE VIA THE UN HYDRA THIS POLICY IF ONE CAN CALL IT THAT HAS BEEN PROMOTED AVIDLY BY THE CLINTON ADMINISTRATION IT WOULD HAVE US BELIEVE THAT A FORMER EGYPTIAN DIPLOMAT WHILE RUNNING BETWEEN DINNER PARTIES CAN EFFECTIVELY STAGEMANAGE A PEACEKEEPING EXPEDITION MADE UP OF 28000 SOLDIERS FROM 33 NATIONS IN DANGEROUS PLACES LIKE SOMALIA AFTER SUNDAY'S SPECTACLE OF CRACK US RANGER TROOPS GETTING PINNED DOWN AND SHOT TO PIECES BY SOMALI GUNNERS THE IDEA THAT WE CAN MIX US MILITARY OPERATIONS INTO A UNLED COMMAND STRUCTURE IS POLITICALLY DEAD IN THIS COUNTRY MR CLINTON IMPLIED AS MUCH YESTERDAY IN POINTEDLY NOTING THAT IF ANY OF THE CAPTURED SOLDIERS WERE MISTREATED THE UNITED STATES NOT THE UNITED NATIONS WILL TAKE APPROPRIATE ACTION IF THIS IS THE BEGINNING OF WISDOM WE APPLAUD IT IN TRYING TO MAKE SENSE OF WHEN TO INTERVENE AND WHEN NOT TO INTERVENE IN THE COMPLEX WORLD AHEAD BOTH THE ADMINISTRATION AND ITS CRITICS SHOULD KEEP IN MIND SOME IMPORTANT POINTS THERE WILL BE MORE SOMALIAS THERE IS A MYTH PREVALENT IN SOME CONSERVATIVE PRECINCTS THAT THE US CAN SIMPLY WRITE THE UNFORTUNATES OF THE WORLD OFF AS MEANINGLESS WOGS CNN'S CAMERAS MAKE A FOLLY OF THAT BELIEF THE REALITY IS THAT FOREIGN POLICY IS NOW DEBATED SIMULTANEOUSLY BOTH IN FOREIGN MINISTRIES AND LIVING ROOMS TIANANMEN SQUARE THE GULF WAR THE FIRST FAILED RUSSIAN COUP WERE ALL INFLUENCED BY SATELLITES GET USED TO IT PRESIDENT CLINTON NEEDS TO RECOGNIZE WHERE HIS REAL ALLIES LIE ON FOREIGN POLICY ABOUT THE FIRST VOICE HEARD SUPPORTING HIS EFFORT IN SOMALIA BELONGED TO SENATOR RICHARD LUGAR REPUBLICAN CONSERVATIVE THE ROAD INTO SOMALIA WAS LINED WITH CHEERING US LIBERALS WHERE ARE THEY NOW WE SUSPECT THAT AS A ROUGH RULE OF THUMB IF MR CLINTON LOOKS AT HIS POLICY TOWARD SOMALIA BORIS YELTSIN OR NAFTA HE'LL FIND MOST OF THE SAME CHARACTERS FIGHTING HIM AND SUPPORTING HIM WHAT SEPARATES THEM IS A WORLD VIEW ONE BALKANIZING THE OTHER INTEGRATING MR CLINTON NEEDS TO HARDEN HIS VISION NOTIONS SUCH AS PEACEMAKING ARE NOT POLITICAL GOALS THEY'RE SENTIMENTS SOMALIA HAS BEEN AN EXERCISE IN SENTIMENT BORIS YELTSIN'S STRUGGLES TO CREATE A REAL RUSSIAN DEMOCRACY AND MR CLINTON'S EFFORT TO LIBERALIZE WORLD TRADE ARE IDENTIFIABLE GOALS UNLESS HARNESSED INTO DOABLE GOALS MERE SENTIMENTS ARE DANGEROUS FOR ALL THE NATURAL HORROR OVER ABUSED SOLDIERS THE INTERESTS AT RISK THIS WEEK EXTEND BEYOND SOMALIA IT FALLS TO THE PRESIDENT TO ARTICULATE THOSE INTERESTS AND DEFEND THEM 9310060073 931006 NAFTA THROUGH THE LOOKING GLASS BY SIDNEY WEINTRAUB THE LOGIC SUCH AS IT IS OF THE OPPOSITION TO NAFTA IN THE US HAS BECOME CLEAR THE BEST PATH TO IMPROVING THE COMPETITIVENESS OF US INDUSTRY IS TO KEEP OUT COMPETITIVE PRODUCTS FROM MEXICO EVEN IF IT MAKES US INDUSTRY MORE COMPETITIVE WE MUST NOT PERMIT THE PRODUCTION OF PART OF A PRODUCT IN THE US AND PART IN MEXICO BUT SUCH COPRODUCTION IS ALL RIGHT WITH OTHER COUNTRIES THE US CONSUMER MUST BE PROTECTED AGAINST ALL THOSE CHEAP IMPORTS FROM MEXICO WE MUST INSTEAD MAINTAIN TARIFFS AND OTHER BARRIERS TO PROTECT THE US CONSUMER AND TO PREVENT THE US FROM BECOMING A LOWWAGE ECONOMY WE MUST SAFEGUARD OUR LOWWAGE JOBS FROM EVEN LOWERWAGE IMPORT COMPETITION EVEN IF THIS MUST BE DONE BY SACRIFICING HIGHWAGE EXPORT JOBS THE MEXICAN MARKET IS TOO SMALL TO BE OF GREAT INTEREST THEREFORE THERE MUST BE A THOUSAND AND ONE OTHER REASONS THE EXCHANGE RATE THE BUILDUP OF CAPITALINTENSIVE INDUSTRIES THE TRADE IN INTERMEDIATE PRODUCTS WHY US MERCHANDISE EXPORTS TO MEXICO SOARED TO MORE THAN 40 BILLION THE THIRD LARGEST EXPORT MARKET AFTER CANADA AND JAPAN IN 1992 EVEN THOUGH WE KNOW THAT THERE HAS BEEN A 10 BILLION TURNAROUND IN THE USMEXICO MERCHANDISE TRADE BALANCE SINCE 1986 CONVERTING A 5 BILLION US DEFICIT INTO A 5 BILLION US BILATERAL SURPLUS LAST YEAR WE CANNOT AFFORD ALL THE IMPORTS FROM MEXICO THAT NAFTA WILL STIMULATE DESPITE THE EVIDENCE THAT US EXPORTS ARE HIGHEST TO COUNTRIES IN WHICH US DIRECT INVESTMENT IS GREATEST SUCH AS CANADA AMONG DEVELOPED COUNTRIES AND MEXICO AMONG DEVELOPING ONES US INVESTMENT IN MEXICO WILL SUCK JOBS OUT OF THE US WHILE WE KNOW THAT THE US GOVERNMENT HAS NO EFFECTIVE WAY TO PREVENT COMPANIES FROM INVESTING WHEREVER THEY WISH BASED ON THEIR PERCEIVED ECONOMIC INTEREST WE DON'T WANT THEM TO GO TO MEXICO THIS IS SO DESPITE THE FACT THAT WE ALSO KNOW THAT WHEN MEXICO EXPORTS TO THE US ABOUT 80 OF THE EARNINGS RESULT IN IMPORTS BACK FROM THE US COMPARED WITH ABOUT 20 FOR EUROPE AND ASIA WHILE IT HAS BECOME QUITE EVIDENT THAT INTERNATIONAL TRADE IS INCREASING RAPIDLY IN INTERMEDIATE AS OPPOSED TO FINAL PRODUCTS WE SHOULD NOT COUNT INTERMEDIATE PRODUCT EXPORTS TO MEXICO AS REAL EXPORTS BECAUSE MEXICO MIGHT ADD VALUE TO THESE AND SHIP THE PRODUCTS BACK TO THE US THIS FORM OF TRADE ACCOUNTING OF EXCLUDING INTERMEDIATE PRODUCT EXPORTS NEED NOT BE USED FOR US TRADE WITH OTHER COUNTRIES EVEN THOUGH THE FACTOR CONTENT THE MIX OF LABOR AND CAPITAL IN PRODUCING GOODS IS ABOUT THE SAME FOR US MERCHANDISE EXPORTS TO MEXICO AND MEXICAN MERCHANDISE EXPORTS TO THE US MEXICO IS USEFUL ONLY AS A LOWWAGE HAVEN FOR US PRODUCTION NEVERTHELESS THERE IS GREAT DANGER TO OUR FUTURE TRADE WITH MEXICO BECAUSE INDUSTRIES THERE ARE IMPORTING LARGE AMOUNTS OF CAPITAL GOODS AND WILL THEREFORE BECOME MORE CAPITALINTENSIVE AND USE LESS LOWCOST LABOR IF MEXICAN INDUSTRY BECOMES MORE CAPITALINTENSIVE AND REAL MEXICAN WAGES RISE THIS POSES A THREAT TO US EXPORTS BECAUSE MEXICANS WILL BE ABLE TO BUY MORE FROM THE US EVEN THOUGH WE KNOW THAT PRODUCT COSTS DEPEND ON TOTAL PRODUCTIVITY AND NOT JUST WAGES AND DESPITE ALL THE EVIDENCE ABOUT FAR HIGHER US PRODUCTIVITY BOTH AT THE PLANT LEVEL AND BECAUSE OF BETTER US TRANSPORTATION AND COMMUNICATIONS THE US MUST FOCUS ON WAGE LEVELS AND NOT THE UNIT COST OF PRODUCTS WE MUST TREAT THE LOWWAGE COUNTRIES THE BANGLADESHES OF THE WORLD AS OUR MOST IMPORTANT TRADE ADVERSARIES AND NOT JAPAN GERMANY AND OTHER HIGHWAGE COUNTRIES THE ECONOMIC DISPARITY BETWEEN THE US AND MEXICO MAKES IT MOST UNWISE TO ENTER INTO FREE TRADE WHY WELL IT DEPENDS THIS WILL DEVASTATE THE US ECONOMY OR IT WILL WREAK HAVOC ON THE MEXICAN ECONOMY EVEN THOUGH EXPORTS HAVE CONTRIBUTED THE MAJOR PART OF THE MEAGER ECONOMIC GROWTH THAT THE US HAS ENJOYED IN RECENT YEARS WE SHOULD NOT ENTER INTO FREE TRADE WHILE DOMESTIC UNEMPLOYMENT IS HIGH WHILE WE KNOW THAT MEXICO'S ENVIRONMENTAL MESS TOOK PLACE WITHOUT NAFTA AND THAT THE AGREEMENT WILL GIVE US AND THE MEXICAN AUTHORITIES A NUMBER OF TOOLS TO CONTROL FUTURE ENVIRONMENTAL DEGRADATION WE MUST OPPOSE THE AGREEMENT ON ENVIRONMENTAL GROUNDS WE KNOW FROM ECONOMETRIC RESEARCH THAT AS INCOMES INCREASE TO MORE THAN 5000 PER CAPITA A YEAR COUNTRIES ARE BETTER ABLE TO CONTROL POLLUTION BUT NAFTA SHOULD BE OPPOSED ON ENVIRONMENTAL GROUNDS BECAUSE IT WILL INCREASE ECONOMIC ACTIVITY IN MEXICO EXPENDITURES FOR ENVIRONMENTAL CONTROL IN MEXICO HAVE SOARED TO 1 OF GROSS DOMESTIC PRODUCT DURING THE PAST FEW YEARS AS A RESULT OF THE INFLUENCE OF NAFTA BUT THIS IS NOT GOOD ENOUGH WHAT FIGURE IS WHEN WE DECIDE ON ONE WE'LL LET YOU KNOW NAFTA AND THE SIDE AGREEMENT ON LABOR RIGHTS PROVIDE THE FIRST REAL OPPORTUNITY TO DEAL WITH WORKPLACE CONDITIONS ON A NORTH AMERICAN BASIS BUT IT IS BETTER TO HAVE NO AGREEMENT EVEN IF THIS MEANS NO INFLUENCE ON MEXICAN PRACTICESSTAR LEWIS CARROLL WOULD BE PROUD OF THE LOGIC OF THE NAFTA OPPONENTS LET'S PROMOTE COMPETITIVENESS BY REDUCING IMPORT COMPETITION LET'S PROMOTE JOB CREATION BY STIFLING EXPORTS WHICH HAVE BEEN THE MOST SIGNIFICANT ENGINE OF JOB CREATION OF RECENT YEARS LET'S HELP THE CONSUMER BY MAINTAINING IMPORT TAXES LET'S HOLD BACK MEXICAN ECONOMIC GROWTH EVEN THOUGH THIS IS THE BASIS FOR OUR GROWING EXPORTS THERE LET'S PROTECT THE ENVIRONMENT BY REJECTING COOPERATION LET'S IMPROVE WORKPLACE STANDARDS IN MEXICO BY REFUSING TO TAKE IMPORTS FROM THAT COUNTRY LET'S PREVENT INVESTMENTS IN MEXICO BY US COMPANIES EVEN AS WE KNOW THESE ARE THE BASIS FOR STIMULATING US EXPORTS LET'S BECOME A HIGHWAGE ECONOMY BY SACRIFICING HIGHWAGE JOBS AND INSTEAD PROTECT LOWWAGE JOBS AND LET'S IGNORE THE FACT THAT MEXICO WILL BE NEXT DOOR FOREVER MR WEINTRAUB HOLDS A CHAIR IN POLITICAL ECONOMY AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES IN WASHINGTON DC 9310060071 931006 QVC PROVIDES FINANCING DATA TO PARAMOUNT MOVE CLEARS WAY FOR OFFER TO GET CONSIDERATION ALONG WITH VIACOM BID BY JOHNNIE L ROBERTS AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK QVC NETWORK INC PROVIDED PARAMOUNT COMMUNICATIONS INC WITH PROOF THAT IT HAS FINANCING FOR ITS 95 BILLION TAKEOVER OFFER CLEARING THE WAY FOR PARAMOUNT TO BEGIN CONSIDERING THE QVC BID ALONG WITH VIACOM INC'S AGREEMENT TO ACQUIRE THE COMPANY AT THE SAME TIME QVC IS CONSIDERING SEEKING ADDITIONAL FINANCING FROM POTENTIAL PARTNERS THAT IT COULD USE TO SWEETEN ITS EXISTING OFFER IF VIACOM BOOSTS ITS 74 BILLION BID AMONG THE OPTIONS QVC IS WEIGHING ARE ADDITIONAL INVESTMENTS FROM COMCAST CORP AND LIBERTY MEDIA INC ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THESE TWO CONCERNS ALONG WITH QVC CHAIRMAN BARRY DILLER CONTROL THE HOME SHOPPING GIANT AND ALREADY ARE BACKING THE CURRENT QVC OFFER WITH A COMBINED 1 BILLION INVESTMENT 500 MILLION EACH IN ADDITION THE PEOPLE SAID TELECOMMUNICATIONS INC THE CABLETV GIANT THAT SPUN OFF LIBERTY IN 1991 MAY BE INVITED TO PROVIDE FINANCIAL BACKING FOR QVC TCI THE NATION'S LARGEST CABLETV OPERATOR IS HEADED BY CHIEF EXECUTIVE JOHN MALONE WHO ALSO IS CHAIRMAN AND CONTROLLING SHAREHOLDER OF LIBERTY MEDIA QVC AS REPORTED IS HOLDING DISCUSSIONS WITH SEVERAL REGIONAL BELL OPERATING COMPANIES INCLUDING BELLSOUTH CORP BELL ATLANTIC CORP AND AMERITECH CORP DURING A 20MINUTE MEETING YESTERDAY MORNING HERBERT ALLEN JR MR DILLER'S INVESTMENT BANKER HANDED MATERIAL ATTESTING TO BANK COMMITMENTS TO LEND QVC 3 BILLION TO FELIX ROHATYN PARAMOUNT'S INVESTMENT BANKER AT THE OFFICES OF LAZARD FRERES & CO YESTERDAY MORNING OTHER DOCUMENTS VERIFIED THE 1 BILLION INVESTMENT BY LIBERTY AND COMCAST IN QVC BUT MR ALLEN DIDN'T ELABORATE ON THE OTHER INVESTORS WHO MIGHT JOIN THE QVC BID PEOPLE FAMILIAR WITH THE MEETING SAID AND THE MEETING WHICH THESE PEOPLE DESCRIBED AS VERY POLITE ENDED WITH MR ROHATYN THE LAZARD BANKER DECLARING THAT HE WOULD GET BACK TO QVC THE RESPONSE CAME SHORTLY IN A STATEMENT IN WHICH PARAMOUNT ACKNOWLEDGED THAT IT HAD RECEIVED QVC'S FINANCING DOCUMENTS AND SAID THAT IT WOULD REVIEW THEM A PARAMOUNT ADVISER SAID ITS DIRECTORS WILL MEET NEXT WEEK TO STUDY THE MATERIAL AND THEN DECIDE WHETHER TO AUTHORIZE THE NEW YORK ENTERTAINMENT AND PUBLISHING COMPANY TO BEGIN TALKS WITH QVC AS QVC PRESSED ITS OFFER YESTERDAY INVESTORS APPEARED TO CONCLUDE THAT QVC AND VIACOM MAY EACH COMPETE BY INCREASING THE CASH PORTION OF THEIR OFFERS WITHOUT RAISING THE OVERALL PERSHARE VALUE OF THE TRANSACTION QVC'S OFFER INCLUDES A CASH PAYMENT OF 30 A SHARE WHILE VIACOM'S CASH PORTION IS 910 A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY PARAMOUNT STOCK DROPPED 1625 TO 76875 THE FIRST PHASE OF THE BIDDING WAR WILL FOCUS ON THE CASH PORTION DECLARED JESSICA REIF A MEDIA AND ENTERTAINMENT ANALYST WITH OPPENHEIMER & CO THE TOTAL VALUE OF THE TRANSACTION MAY NOT GO HIGHER ONE HIGHLEVEL STRATEGIST FOR QVC AGREED THE THING THAT IS SIMILAR ABOUT BARRY DILLER AND VIACOM CHAIRMAN SUMNER REDSTONE IS THEY ARE LONGTERM PLAYERS THIS PERSON SAID THEY DON'T WANT TO RUIN THEIR COMPANIES WITH EXORBITANT DEBT LEVELS THEY WON'T GET DEAL FEVER THERE IS ONLY SO MUCH THAT ANYBODY WILL PAY SHARES OF QVC MEANWHILE INCHED UP 125 CENTS TO 55875 IN NATIONAL OVERTHECOUNTER TRADING VIACOM CLASS B SHARES FELL 25 CENTS TO 53125 ON THE AMERICAN STOCK EXCHANGE BASED ON YESTERDAY'S CLOSE QVC'S OFFER TOTALED 7990 A SHARE OR 95 BILLION WHILE VIACOM'S WAS VALUED AT 6263 A SHARE OR 74 BILLION PETER SCHOENFELD VICE CHAIRMAN IN CHARGE OF PROPRIETARY TRADING AT WERTHEIM SCHRODER & CO SAID PARAMOUNT STOCK FELL BECAUSE QVC DIDN'T ACCOMPANY VERIFICATION OF ITS FINANCING WITH SOME PUBLIC STATEMENT TO PUT MORE PRESSURE ON THE PARAMOUNT BOARD HE SAID THE PROCESS IS SLOWING DOWN AND PEOPLE HAD BEEN LOOKING FOR INSTANT GRATIFICATION COMCAST AND LIBERTY OFFICIALS WEREN'T AVAILABLE TO COMMENT ON SPECULATION THAT THEY MIGHT BOOST THEIR INVESTMENTS TO FURTHER SUPPORT THE QVC OFFER A SPOKESMAN FOR TCI DECLINED TO COMMENT ONE PERSON CLOSE TO THE SITUATION HOWEVER SAID THAT AN ANNOUNCEMENT ABOUT A NEW PARTNER OR ADDITIONAL INVESTMENTS ISN'T IMMINENT THERE IS NOTHING URGENT FOR QVC THIS PERSON SAID QVC JUST DELIVERED ITS FINANCING PAPERS THE BALL IS IN PARAMOUNT'S COURT THERE WON'T BE NEWS FROM OUR SIDE SOON BECAUSE THE QVC OFFER IS STILL WAY AHEAD BUT IN THE PAST SEVERAL DAYS VIACOM HAS MOVED AGGRESSIVELY TO AMASS A WAR CHEST THAT CAN BE TAPPED TO SWEETEN ITS OFFER NYNEX CORP THE NEW YORKBASED BELL PHONE COMPANY AGREED TWO DAYS AGO TO INVEST 12 BILLION IN VIACOM WHILE BLOCKBUSTER ENTERTAINMENT INC LAST WEEK AGREED TO POUR IN 600 MILLION REINFORCED BY THE TWO ALLIES MR REDSTONE YESTERDAY BOASTED IN A CONFERENCE CALL TO SECURITIES ANALYSTS THAT IT WOULD BE NEAR IMPOSSIBLE FOR VIACOM TO NOT COMPLETE THE DEAL WITH PARAMOUNT ACCORDING TO PARTICIPANTS IN THE SESSION INVESTMENT BANKERS ANALYSTS AND TAKEOVER STOCK TRADERS THINK THE BIDDING CONTEST COULD LAST AN ADDITIONAL FOUR TO SIX WEEKS AND POSSIBLY LONGER DEPENDING ON WHETHER THE PARAMOUNT BOARD OF DIRECTORS SETS A DEADLINE FOR BOTH PARTIES TO SUBMIT THEIR BEST BIDS OR ALLOWS EVENTS TO UNFOLD AT THE INITIATIVE OF QVC AND VIACOM VIACOM'S OPTIONS AT THIS POINT APPEAR TO BE EITHER TO IMPROVE ITS BID BEFORE PARAMOUNT OPENS TALKS WITH QVC OR WAIT UNTIL PARAMOUNT MUST CHOOSE BETWEEN THE TWO BIDS BY BOOSTING ITS BID NOW THE NEW YORK CABLETV AND PROGRAMMING CONCERN MIGHT HOPE TO PREEMPT ANY PARAMOUNTQVC TALKS AND MAINTAIN ITS ADVANTAGE OF HAVING A SIGNED MERGER CONTRACT WITH PARAMOUNT BY WAITING VIACOM KEEPS OPEN THE POSSIBILITY THAT QVC'S STOCK PRICE MIGHT WEAKEN CUTTING THE VALUE OF QVC'S BID MANY EXPERTS THINK IT MAKES SENSE FOR VIACOM TO WAIT HOLDING OFF ON ANY INCREASED OFFER UNTIL LATER IN THE GAME WHEN MORE MAY BE KNOWN ABOUT HOW HIGH QVC IS WILLING TO BID BESIDES BOOSTING THE CASH VALUE OF THEIR OFFERS QVC AND VIACOM ALSO MAY TRY TO STRENGTHEN THEIR RESPECTIVE BIDS BY INTRODUCING SOME PROTECTION FOR PARAMOUNT SHAREHOLDERS AGAINST A DROP IN THEIR STOCK PRICES AS EACH COMPANY'S OFFER IS NOW STRUCTURED THE VALUES OF THEIR BIDS SWING WITH THE DAILY FLUCTUATION IN THEIR SHARE PRICES FOR EXAMPLE THE VALUE OF VIACOM'S OFFER DROPPED TO 74 BILLION YESTERDAY FROM 82 BILLION WHEN IT WAS FIRST ANNOUNCED IF THE PACE LAGS SOME TRADERS THINK QVC MIGHT ACCELERATE THE PROCESS BY MAKING A TENDER OFFER FOR PARAMOUNT STOCK PROPOSING TO BUY THE MAJORITY OF ITS SHARES WITH CASH AND THE REMAINDER WITH STOCK OR OTHER SECURITIES BUT MOST OBSERVERS THINK QVC WOULD PURSUE THAT STRATEGY ONLY IF IT BELIEVED THAT PARAMOUNT WASN'T GIVING THE UNWELCOME QVC BID THE SAME CONSIDERATION AS THE FRIENDLY VIACOM PROPOSAL 9310060070 931006 TECHNOLOGY FDA CLEARS ALAMAR'S TEST SACRAMENTO CALIF ALAMAR BIOSCIENCES INC SAID IT RECEIVED CLEARANCE FROM THE FOOD AND DRUG ADMINISTRATION TO BEGIN MARKETING THE GRAM NEGATIVE PORTION OF ITS BACTERIAL IDENTIFICATION KIT THE COMPANY ESTIMATED THE US MARKET FOR THE DIAGNOSTIC TEST CLEARED BY THE FDA IS ABOUT 50 MILLION ANNUALLY 9310060069 931006 IN FROM THE COLD A CONFESSION WAS START OF A LONG STRANGE TRIP FOR KATHERINE POWER LAWYER THERAPIST GUIDING '60S FUGITIVE TO JUSTICE TOOK ODD RISKY STEPS RX HOLOTROPIC BREATHING' BY CAROL HYMOWITZ AND ELLEN JOAN POLLOCK STAFF REPORTERS OF THE WALL STREET JOURNAL CORVALLIS ORE A LAWYER AND A NEW AGE THERAPIST HELPED GUIDE KATHERINE ANN POWER TO HER MOMENT OF RECKONING HER SENTENCING TODAY FOR HER ROLE IN A 1970 BANK ROBBERY AND MURDER WHATEVER ONE THINKS OF HER PLACE IN HISTORY THEIRS IS TURNING OUT TO BE SINGULARLY BIZARRE MS POWER'S EMERGENCE FROM TWO DECADES IN HIDING WAS BOUND TO BE STRANGE ALMOST UNAVOIDABLY AN INKBLOT TEST FOR CONTEMPORARIES RECALLING CONFLICTS OF THEIR OWN HER STORY HAS BEEN TOLD EITHER AS A JOURNEY OF EXPIATION OR AS A WALLOW IN SELFABSORPTION BUT HER EXPERIENCE AS A CANVAS FOR OTHER PEOPLE'S CREATIONS SEEMS TO HAVE BEGUN LONG BEFORE THE SURRENDER THAT PROPELLED HER DIRECTLY FROM OBSCURITY TO MYTH FROM THE MOMENT SHE DECIDED TO CONFESS IT SEEMS MS POWER HAS BEEN GUIDED BY HANDLERS WITH UNUSUAL VIEWS ABOUT WHAT WAS IN THE BEST INTERESTS OF THEIR SOONTOBE CELEBRITY CLIENT TO HER THERAPIST SHE WAS A CANDIDATE FOR OFFBEAT TREATMENTS HER CORVALLIS LAWYER APPOINTED HER TO BE HIS DEFENSE ATTORNEY IN A MOCK TRIAL OF HIS OWN SUPPOSED VIETNAM WAR CRIMES KATHY CAME INTO MY LIFE WHEN I NEEDED HER MOST HE SAYS EVEN WHEN MS POWER PUT HERSELF IN THE HANDS OF A HIGHPROFILE BOSTON DEFENSE ATTORNEY HER CASE WAS HANDLED IN A WAY THAT HAS RAISED QUESTIONS HER LAWYER APPEARED ON THE DONAHUE SHOW AND TOLD THE TELEVISION AUDIENCE THAT MS POWER NOW 44 WOULD SERVE A SIGNIFICANT SENTENCE THE LAWYER HAD ALREADY NEGOTIATED A RECOMMENDED SENTENCE OF EIGHT TO 12 YEARS A TERM THAT SOME LEGAL EXPERTS FOUND UNEXPECTEDLY HARSH MS POWER'S EMERGENCE FROM LIFE UNDERGROUND BEGAN 18 MONTHS AGO WHEN SHE ATTENDED A COURSE ON DEPRESSION LED BY LINDA CARROLL A MARRIAGE AND FAMILY COUNSELOR WHO CALLS HERSELF A FACILITATOR OF HEALING MS CARROLL DESCRIBED BY FRIENDS AS A HEART PERSON AND VERY SPIRITUAL WAS STARTLED BY THE DEPRESSION AFFLICTING MS POWER WHO WAS LIVING UNDER THE ASSUMED NAME OF ALICE METZINGER AND WORKING AS A CHEF MS POWER COULDN'T SPEAK WITHOUT CRYING AND SHE ACCEPTED THE THERAPIST'S INVITATION TO MEET PRIVATELY IT TOOK ONLY TWO SESSIONS BEFORE SHE BLURTED OUT HER TRUE IDENTITY ACCORDING TO MS CARROLL PART OF GETTING WELL OR HEALING IS CLAIMING ALL OF YOU SAYS MS CARROLL AS SOON AS MS POWER SHARED HER SECRET IN THERAPY MS CARROLL TOLD HER TO CONTACT STEVEN BLACK A CORVALLIS PUBLIC DEFENDER AND CRIMINAL LAWYER WITH THE HOPE THAT HE WOULD SORT OUT THE CHARGES SHE FACED LAUDABLE AS IT MIGHT SEEM TO SEND A FUGITIVE STRAIGHTAWAY TO A LAWYER MANY THERAPISTS SAY THAT IS A STEP THAT OUGHT TO BE APPROACHED GINGERLY SERIOUSLY DEPRESSED PEOPLE THEY SAY USUALLY SHOULDN'T ATTEMPT TO MAKE MAJOR DECISIONS BEFORE THEY DEAL WITH THEIR ILLNESS IDEALLY IN A SITUATION LIKE THIS YOU'D WANT TO SAY TO A PATIENT LET'S TREAT THE DEPRESSION FIRST AND THEN YOU'LL BE IN A BETTER POSITION TO DECIDE TO TURN YOURSELF IN' SAYS PETER KRAMER A PSYCHIATRIST AND THE AUTHOR OF LISTENING TO PROZAC A BOOK ABOUT THE POPULAR ANTIDEPRESSANT DRUG GUILT IS VERY HARD TO ASSESS IN THE MIDST OF DEPRESSION MS CARROLL SAYS THE OBJECT OF MY REFERRAL WAS FOR HER ONLY TO GET INFORMATION NOT TO ACT ON IT UNTIL SHE WAS IN A PLACE TO MAKE A DECISION MR BLACK SAYS MS POWER WASN'T COHERENT WHEN SHE FIRST SHOWED UP AT HIS OFFICE IN MAY 1992 AFTER A THERAPY SESSION WITH MS CARROLL SHE JUMPED ALL AROUND HE SAYS TALKING ONE MINUTE ABOUT BURNING DRAFT CARDS AND THE NEXT ABOUT MURDER HE ADDS SHE THOUGHT HER NAME WAS KATHERINE ANN POWER BUT SHE WASN'T SURE MR BLACK SPENT TWO HOURS TRYING TO DECIPHER HER STORY BUT WAS SO CONCERNED ABOUT HER MENTAL STATE THAT HE DROVE HER TO GOOD SAMARITAN HOSPITAL TO SEE BARRY REEVES AN EMERGENCYROOM PHYSICIAN DR REEVES MR BLACK SAYS MADE A PACT WITH MS POWER THAT SHE WOULDN'T HARM HERSELF IN THE FOLLOWING MONTHS MS CARROLL THREW A BATTERY OF TREATMENTS AT MS POWER SOME OF THEM QUITE UNORTHODOX SHE TAUGHT HER HOLOTROPIC BREATHING A TECHNIQUE DEVELOPED BY AN LSD RESEARCHER THAT IS SUPPOSED TO PUT THE PRACTITIONER INTO AN ALTERED STATE WITHOUT THE USE OF DRUGS JOANNA DARDEN A THERAPIST WHO IS MS CARROLL'S PARTNER SAYS HOLOTROPIC BREATHING ALLOWS PARTICIPANTS TO RECREATE PREBIRTH PASTLIFE AND OTHER EXPERIENCES AND VISIT OTHER TIMES AND CULTURES MS POWER TOOK PART IN A WEEKEND GROUP WORKSHOP IN WHICH SHE DID THE THERAPY IN THE PRESENCE OF SITTERS WHO WERE THERE TO PROVIDE SUPPORT IF NECESSARY WHATEVER THE MERITS OF THIS TREATMENT ONE THING IS CLEAR IT INVOLVED TALKING ABOUT ONESELF IN THE PRESENCE OF OTHER PEOPLE THIS PERHAPS WASN'T THE WISEST PRESCRIPTION FOR A PERSON WHO HAD SPENT 14 YEARS ON THE FEDERAL BUREAU OF INVESTIGATION'S MOSTWANTED LIST AND WASN'T YET OUT OF HIDING MS CARROLL SAYS HOLOTROPIC BREATHING IS A VERY INTERNAL PROCESS WHICH SHE TAUGHT MS POWER TO HELP HER RELAX SHE ADDS I DON'T DO THE KIND OF WORK WHERE PEOPLE BLURT OUT ANYTHING MS CARROLL SENT MS POWER TO A PSYCHIATRIST TO OBTAIN A PRESCRIPTION FOR ANTIDEPRESSANT MEDICATION AND MS POWER BEGAN TAKING THE DRUG DESYREL MS CARROLL ALSO HAD MS POWER PARTICIPATE IN GROUP THERAPY THE GOAL ACCORDING TO MS DARDEN WAS TO ENGAGE IN AS DEEP AN INTERPERSONAL RELATIONSHIP AS POSSIBLE AS HONESTLY AS POSSIBLE MS CARROLL TOLD THE GROUP THAT THERE WERE CERTAIN THINGS THAT MS POWER COULDN'T REVEAL ABOUT HERSELF AND MS POWER TALKED IN METAPHORS EXPLAINS MS DARDEN MS POWER AND HER LAWYER WERE INDULGING IN OTHER KINDS OF TALK THERAPY PERHAPS EVEN RISKIER FOR A PERSON IN HER STATE MS CARROLL SAYS SHE RECOMMENDED MR BLACK BECAUSE SHE HAD HEARD HE TOOK ON EXTREME CASES SHE THOUGHT HE COULD HANDLE KATHY BEING A FUGITIVE BETTER THAN OTHER ATTORNEYS IN TOWN MR BLACK IS KNOWN IN CORVALLIS AS AN OUTSPOKEN IRREVERENT REBEL HE HAS A COLLECTION OF FISH TIES 27 AT LAST COUNT THAT HE OFTEN WEARS TO COURT TO PROTEST THE RULE THAT LAWYERS MUST DRESS FORMALLY THERE ELEVEN COMPLAINTS ABOUT HIM HAVE BEEN FILED WITH THE OREGON STATE BAR ALTHOUGH NINE COMPLAINTS HAVE BEEN DISMISSED LAST DECEMBER MR BLACK RECEIVED A PUBLIC REPRIMAND ONE NOTCH BELOW A SUSPENSION FROM THE BAR DISCIPLINARY BOARD FOR VIOLATING ETHICAL RULES BY WITHDRAWING FROM A CRIMINAL CASE WITHOUT COURT PERMISSION ACCORDING TO A BAR OFFICIAL MR BLACK SAYS HE DID RECEIVE PERMISSION BUT FAILED TO FILE THE PROPER PAPERWORK WHEN TOLD TO DO SO THE REMAINING DISCIPLINARY COMPLAINT IS PENDING MR BLACK SAYS HE HAD HUNDREDS OF HOURS OF CONVERSATIONS WITH MS POWER IN HIS OFFICE THEY CONVERSED BENEATH PHOTOS FROM MR BLACK'S DAYS IN VIETNAM HE NEEDED TO WIN HER TRUST HE EXPLAINS BECAUSE YEARS UNDERGROUND HAD MADE HER PARANOID AND DISTRUSTFUL OF PEOPLE MS POWER HE SAYS TOLD HIM ABOUT HER STRICT ROMAN CATHOLIC UPBRINGING HE IN TURN POURED OUT HIS ANGST HE TOLD MS POWER ABOUT HIS TOUR OF DUTY AS A PILOT AND THE GUILT HE FELT ABOUT THE PEOPLE HE HAD KILLED BEFORE LONG HE BEGAN TO PERCEIVE MS POWER AS THE PERSON WHO COULD HELP HIM RESOLVE HIS CONFLICTS ABOUT VIETNAM HE SAYS THEIR MEETINGS PUT MS POWER IN JEOPARDY LAWYERS RISK BEING SUBPOENAED BY PROSECUTORS OR GRAND JURIES AND QUESTIONED ABOUT THE LOCATION OF FUGITIVE CLIENTS WHICH IS WHY MOST ATTORNEYS REPRESENTING SUCH FUGITIVES MAKE SURE THEY STAY IN THE DARK ABOUT THEIR CLIENT'S WHEREABOUTS MR BLACK SOON PUT MS POWER AT EVEN GREATER RISK IN THE FALL OF 1992 HE PROPOSED THAT SHE SERVE AS HIS DEFENSE ATTORNEY IN A MOCK TRIAL IN WHICH HE WOULD STAND ACCUSED OF MURDER AND OTHER WAR CRIMES THE MOCK TRIAL WAS HELD IN SEPTEMBER 1992 AT THE INTIMATE 105YEAROLD BENTON COUNTY COURTHOUSE FOR CORVALLIS'S PROGRESSIVE COMMUNITY IT WAS THE SOCIAL EVENT OF THE SEASON ABOUT 50 FRIENDS AND ASSOCIATES WATCHED AS OREGON STATE DISTRICT JUDGE HENRY DICKERSON PRESIDED OVER THE THREEHOUR PROCEEDINGS IN THE AUDIENCE WERE MS POWER'S COMPANION RON DUNCAN AND FRIENDS ALSO IN ATTENDANCE WERE LINDA CARROLL DR REEVES AND ANOTHER LOCAL PSYCHIATRIST WHO HAD PRESCRIBED MEDICATION FOR MS POWER THEY WERE INVITED TO WATCH OVER THEIR PATIENT MR BLACK SAYS KAREN ZORN THE BENTON COUNTY ASSISTANT DISTRICT ATTORNEY RECALLS THAT MR BLACK TOLD HER HE WAS HOLDING THE MOCK TRIAL AS THERAPY FOR BOTH HIMSELF AND A FUGITIVE CLIENT WHO WOULD ALSO BE PRESENT HE DIDN'T TELL ME THE PERSON'S NAME BUT MENTIONED SUSAN SAXE MS POWER'S COLLEGE ROOMMATE AND ACCOMPLICE IN THE BANK ROBBERY SAXE'S NAME RANG A BELL MS ZORN SAYS BUT SHE DIDN'T PRESS FOR ANY DETAILS I DIDN'T ACCEPT STEVE'S INVITATION AS A LAWENFORCEMENT OFFICIAL I WENT AS A FRIEND SHE SAYS ONCE AT THE TRIAL HOWEVER MS ZORN SAYS IT PASSED THROUGH MY MIND THAT THE WOMAN ACTING AS MR BLACK'S DEFENSE ATTORNEY MIGHT BE THE FUGITIVE MR BLACK HIMSELF SAYS HE WORRIED THAT MS POWER MIGHT BLURT IT OUT AND IDENTIFY HERSELF DURING HER EMOTIONAL CLOSING STATEMENT WHEN SHE ARGUED THAT HE WAS MERELY A VICTIM OF THE TIMES THE SYSTEM CREATES WARS AND MR BLACK HAD ONLY BEEN FOLLOWING ORDERS SHE TOLD THE JURY THEIR VERDICT MR BLACK WAS GUILTY BY 1993 STANDARDS BUT NOT BY THE STANDARDS OF THE VIETNAM ERA MR BLACK SENTENCED HIMSELF TO 50 HOURS OF COMMUNITY SERVICE STEVE TOLD ME HE HAD TO RESOLVE HIS CONFLICTS ABOUT THE WAR BEFORE HE HAD THE RIGHT TO DEFEND MS POWER SAYS ROD TERRY A FRIEND WHO ALSO IS A VIETNAM VETERAN MR BLACK SAYS I DON'T KNOW WHAT THE MOCK TRIAL DID FOR HER EXCEPT TO SHOW THAT THE LEGAL SYSTEM COULD PROVIDE A POSITIVE RESULT FOR ME IT WAS A BIG LOAD OFF MY BACK I TOLD THE WORST THINGS I EVER DID AND MY FRIENDS STILL WANTED TO BE FRIENDS WITH ME THE MOCK TRIAL WASN'T OUT OF CHARACTER FOR CORVALLIS A UNIVERSITY TOWN WHERE MANY PEOPLE WEAR CRYSTALS AS MUCH AS MS POWER COULD BE COMFORTABLE SHE WAS COMFORTABLE THERE SHE EVEN HELPED START A BUSINESS IN CORVALLIS M'S TEA AND COFFEE HOUSE BUILT PARTLY WITH VOLUNTEER LABOR FROM THE TOWN'S THRIVING LESBIAN COMMUNITY BUT IN NEARBY LEBANON THE CONSERVATIVE LUMBER TOWN WHERE SHE LIVED IN A RUNDOWN HOUSE MS POWER TENDED TO KEEP ISOLATED WITH MR DUNCAN AND HER SON MR DUNCAN HER HUSBAND WHO MARRIED HER ONLY RECENTLY BUT HAS BEEN WITH HER FOR 13 YEARS TRIED TO DISSUADE MS POWER FROM TURNING HERSELF IN HE DECLINED TO BE INTERVIEWED FOR THIS STORY BUT HE TOLD THE EUGENE REGISTERGUARD IN ONE OF THE ONLY INTERVIEWS HE HAS GIVEN THAT HE WORRIED ABOUT WHETHER PRISON WOULD EVER GIVE HER BACK HER PLACE IN HER CATHOLIC FAMILY OR ASSUAGE HER GUILT HE CALLED HER A PENITENT AND IN FACT EVEN AS SHE PREPARED TO LEAVE MR DUNCAN AND HER SON JAIME WHO HAVE LITTLE MONEY SHE SOLD HER SHARE OF A RESTAURANT IN EUGENE ORE AND DONATED THE PROCEEDS TO OXFAM THE BOSTONBASED HUNGERRELIEF AGENCY IN BOSTON MS POWER'S DEFENSE WAS TAKEN UP BY RIKKI KLIEMAN A WELLKNOWN LAWYER WHOM MR BLACK HAD RETAINED FOR MS KLIEMAN THE HIGH PROFILE OF THE POWER CASE WOULD SOON OUTSTRIP THE ATTENTION SHE GOT REPRESENTING A CHRISTIAN SCIENCE COUPLE WHO WERE CONVICTED OF INVOLUNTARY MANSLAUGHTER IN 1990 FOR FAILING TO GET MEDICAL HELP FOR THEIR DYING SON MS KLIEMAN LATER GOT THE CONVICTION OVERTURNED ON APPEAL STRICTLY FROM A LEGAL POINT OF VIEW MS KLIEMAN HAD THE UPPER HAND WHEN SHE SAT DOWN TO NEGOTIATE THE TERMS OF MS POWER'S SURRENDER WITH STATE PROSECUTORS LEGAL EXPERTS SAY FOR THE PROSECUTION THE CASE WAS SOMETHING OF A CRAPSHOOT WHEN MS SAXE WAS TRIED ON MURDER CHARGES AFTER HER CAPTURE IN 1975 THE JURY DEADLOCKED MOST JURORS REPORTEDLY VOTED FOR ACQUITTAL SHE SUBSEQUENTLY PLEADED GUILTY TO LESSER CHARGES AND SERVED ABOUT SEVEN YEARS THE POPULAR WISDOM IN THE SAXE DEFENSE CAMP WAS THAT KATHERINE POWER COULD HAVE GOTTEN AN ACQUITTAL SAYS A PERSON FAMILIAR WITH THE CASE CERTAINLY THE EVIDENCE AGAINST MS POWER WAS MUCH WEAKER MS SAXE HAD BEEN IN THE BANK HOLDING A GUN MS POWER WAS ABOUT A MILE AWAY IN A GETAWAY CAR AND DIDN'T HEAR ABOUT THE DEATH OF WALTER A SCHROEDER A POLICEMAN SHOT IN THE BACK DURING THE HOLDUP UNTIL HOURS LATER IT'S A CASE THAT COULD GO EITHER WAY SAYS THOMAS SHAPIRO A DEFENSE LAWYER FOR MS SAXE AS FAR AS I'M AWARE THERE'S NO EYEWITNESS THERE'S NO DIRECT EVIDENCE LINKING HER TO THESE EVENTS AND ACCOMPLICE TESTIMONY IS ALWAYS LOOKED UPON WITH GREAT CAUTION AFTER A YEAR OF ARDUOUS NEGOTIATION MS KLIEMAN AGREED THAT THE PROSECUTORS WOULD RECOMMEND A SENTENCE OF 8 TO 12 YEARS WHICH WOULD MEAN MS POWER WOULD SERVE AT LEAST 5 1/3 YEARS IN PRISON MS KLIEMAN DISPUTES THE VIEW THAT THERE WAS LITTLE EVIDENCE AGAINST HER CLIENT AMONG OTHER THINGS SHE SAYS MS POWER'S SIGNATURE APPEARS ON A BILL OF SALE OF A GETAWAY CAR I THINK THAT IN TERMS OF NEGOTIATING I GOT TO THE POINT THAT THE COMMONWEALTH WOULD GO NO FARTHER THAT THERE WAS NOTHING ELSE I COULD DO AND I HAD TO DECIDE ON THAT BASIS WHETHER I COULD LIVE WITH THIS AND WHETHER KATHERINE POWER COULD LIVE WITH THIS THE SCHROEDER FAMILY WHICH HAD BEEN CONSULTED BY PROSECUTORS THROUGHOUT THE NEGOTIATION WAS PLEASED TO BE HONEST THIS WOULDN'T BE A VIABLE TRIAL CASE SAYS CLAIRE SCHROEDER DAUGHTER OF THE SLAIN MAN AND HERSELF A POLICE OFFICER PROSECUTORS DID THE BEST THEY COULD WITH WHAT THEY HAD BUT DID MS KLIEMAN SOME LAWYERS AREN'T SO SURE IT'S A DEAL BUT IT'S NOT A GREAT DEAL SAYS NORMAN ZALKIND A BOSTON CRIMINAL LAWYER A CLIENT WHO'S SURRENDERING HAS A CERTAIN POWER FROM THE BEGINNING DEALING WITH THE PRESS WAS TRICKY RJ CINQUEGRANA A STATE PROSECUTOR WARNED MS KLIEMAN TO KEEP THE SURRENDER A SECRET I TOLD HER I WOULD NOT HONOR THE DEAL IF I KNEW THAT SHE TIPPED OFF THE PRESS SHE TOLD ME SHE DIDN'T BUT MR BLACK DID ACCORDING TO BARBARA CURTIN FEATURE EDITOR AT THE CORVALLIS GAZETTE TIMES MR BLACK TIPPED OFF EDITORS A DAY BEFORE MS POWER'S SURRENDER AND ARRANGED AN INTERVIEW FOR THEM WITH MS CARROLL WHO DESCRIBED IN DETAIL MS POWER'S BATTLE WITH DEPRESSION WHAT FOLLOWED WAS A FLOOD OF MEDIA COVERAGE DEPICTING MS POWER AS A SIXTIES HEROINE AND A VICTIM OF MENTAL ILLNESS MS POWER'S ENTHUSIASM FOR HELPING OUT OTHERS AND HER POLENTA RECIPE WERE RECURRING THEMES IN INTERVIEWS WITH FRIENDS THE BACKLASH WAS INTENSE THERE WERE INTERVIEWS WITH THE SCHROEDER FAMILY WHO SAID THEY WERE SICKENED BY THE POSITIVE PORTRAYALS OF MS POWER CRIMINAL LAWYERS ARE DIVIDED ABOUT WHETHER PRESS COVERAGE CAN BENEFIT THEIR CLIENTS BUT MANY SAY THAT IN MS POWER'S CASE THE LESS SAID THE BETTER BECAUSE IT INVOLVED THE DEATH OF A HERO COP WHO LEFT NINE CHILDREN AND IT TRIGGERED STRONG EMOTIONS IN PEOPLE AS ONE ATTORNEY SAID IF YOU SAY SHE HAS A GUILTY CONSCIENCE THEY'LL WONDER WHY SHE WAITED 23 YEARS AND IF YOU TRY TO EXPLAIN HER CRIME IN THE CONTEXT OF THE TIMES THEY'LL SAY SHE'S TRYING TO EXCUSE HERSELF MS KLIEMAN SAYS THAT SHE WOULD HAVE PREFERRED AVOIDING THE MEDIA UNTIL AFTER SENTENCING BUT THAT ONCE THE STORY BROKE SHE TOOK REPORTER'S CALLS CLOSE TO ROUND THE CLOCK IN RETROSPECT SHE SAYS IT WAS VERY APPROPRIATE TO BRING KATHERINE POWER'S STORY TO THE PUBLIC IN ORDER FOR THE WORLD TO SEE HER AS A WOMAN ON MORAL HIGH GROUND SHE ADDS WE TURNED THE DONAHUE' SHOW INTO A VERY SYMPATHETIC LOOK AT KATHERINE POWER AND THE PERSON THAT SHE IS TODAY AND I THINK IT'S VERY GOOD FOR HER WHATEVER HAPPENS AT THE SENTENCING TODAY MS CARROLL AND MR BLACK WILL CONTINUE TO BE INVOLVED IN MS POWER'S STORY MS CARROLL SAYS SHE HAS BEEN IN TELEPHONE CONTACT WITH MS POWER TO ADVISE HER ON HOW TO CONTINUE HER HEALING PROCESS IN PRISON MR BLACK FOR HIS PART IS TRYING TO HELP HER FULFILL HER WISH TO MAKE AMENDS WITH THE SCHROEDER FAMILY AT THE MOMENT THAT DOESN'T SEEM LIKELY THE FAMILY HAS FLATLY REBUFFED THE OVERTURES NEVERTHELESS MR BLACK SAYS CONFIDENTLY EVENTUALLY IT WILL HAPPEN IF WE HAVE TO CALL IN THE POPE THERE'LL BE A RECONCILIATION IN THIS CASE 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 9310060068 931006 BUSINESS BRIEF SAFEWAY INC PROFIT MORE THAN DOUBLED IN CHAIN'S FISCAL 3RD PERIOD SAFEWAY INC SAID A 3 INCREASE IN SALES AND CONTINUED COSTCUTTING AT ITS 1100 STORES MORE THAN DOUBLED FISCAL THIRDQUARTER EARNINGS THE OAKLAND CALIF SUPERMARKET CHAIN SAID EARNINGS FOR THE THIRD QUARTER ENDED SEPT 11 WERE 421 MILLION OR 34 CENTS A SHARE COMPARED WITH 20 MILLION OR 17 CENTS A SHARE IN THE YEARAGO QUARTER ANALYSTS HAD PROJECTED SAFEWAY'S MEAN EARNINGS AT 30 CENTS A SHARE ACCORDING TO SACKS INVESTMENT RESEARCH INC SAMESTORE SALES ROSE 31 FROM A YEAR EARLIER AND TOTAL QUARTERLY SALES FOR THE CHAIN ROSE 3 TO 36 BILLION IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY SAFEWAY CLOSED AT 1975 UP 1625 SAFEWAY SAID ITS EARNINGS FOR THE FIRST 36 WEEKS OF FISCAL 1993 AFTER A CHARGE OF 302 MILLION OR 25 CENTS A SHARE FOR AN EMPLOYEE BUYOUT PROGRAM WERE 764 MILLION OR 63 CENTS A SHARE 9310060067 931006 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ANCHOR BANCORP INC AN OFFERING OF 100 MILLION PRINCIPAL AMOUNT OF 89375 10YEAR SENIOR NOTES VIA SMITH BARNEY SHEARSON INC EATERIES INC AN OFFERING OF 1250000 COMMON SHARES VIA PAULI & CO INTERPORE INTERNATIONAL AN INITIAL OFFERING OF TWO MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES INC SUTRO & CO AND REICH & CO JONES ENTERTAINMENT GROUP LTD A UNIT OF JONES INTERNATIONAL LTD AN INITIAL OFFERING OF 1350000 MILLION CLASS A COMMON SHARES LANDS' END INC AN OFFERING OF 1261000 COMMON SHARES VIA WILLIAM BLAIR & CO SONOCO PRODUCTS INC AN OFFERING OF THREE MILLION OF SERIES A CUMULATIVE CONVERTIBLE PREFERRED SHARES VIA JP MORGAN SECURITIES INC AND CS FIRST BOSTON 9310060066 931006 BUSINESS BRIEF FEDERAL PAPER BOARD CO THIRDPERIOD LOSS IS BLAMED ON DECLINE IN PRICE OF PULP FEDERAL PAPER BOARD CO REPORTED A THIRDQUARTER LOSS MAINLY DUE TO A 28 DROP IN AVERAGE MARKET PRICES FOR PULP THE MONTVALE NJ MAKER OF PAPERBOARD PULP PRODUCTS CUPS AND CARTONS SAID IT HAD A LOSS IN THE QUARTER ENDED SEPT 11 OF 6 MILLION OR 18 CENTS A SHARE COMPARED WITH A YEAREARLIER PROFIT OF 261 MILLION OR 59 CENTS A SHARE IT SAID THE LATEST PERIOD REFLECTS A NONCASH CHARGE OF 23 CENTS A SHARE FULLY DILUTED REFLECTING CHANGES IN FEDERAL TAX LAWS AND PRETAX COSTS OF BETWEEN 6 MILLION AND 8 MILLION FOR THE SHUTDOWN DURING THE QUARTER OF THE COMPANY'S RIEGELWOOD MILL SALES IN THE QUARTER DECLINED 4 TO 324 MILLION FOR THE NINE MONTHS NET INCOME FELL 83 TO 129 MILLION OR 20 CENTS A SHARE FROM 767 MILLION OR 174 A SHARE INCLUDING A 9 MILLION GAIN DUE TO THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE PRESIDENT JOHN R KENNEDY SAID THIRDQUARTER RESULTS REFLECT THE CONTINUATION OF POOR WORLDWIDE DEMAND THAT HAS CAUSED FURTHER DETERIORATION IN MARKET PULP PRICES HE SAID HE EXPECTS THE PULP MARKET TO REMAIN STABLE IN THE FOURTH QUARTER SINCE PRICES SEEM TO HAVE REACHED BOTTOM 9310060065 931006 BUSINESS BRIEF TREMONT CORP TITANIUM UNIT TO POST LOSS OF 6 MILLION FOR 3RD PERIOD TREMONT CORP SAID ITS PRINCIPAL OPERATING SUBSIDIARY TITANIUM METALS CORP EXPECTS TO POST A 6 MILLION THIRDQUARTER LOSS BEFORE RESTRUCTURING CHARGES THAT COULD PUT THE UNIT IN DEFAULT OF ITS BANK CREDIT AGREEMENT TREMONT 48OWNED BY FINANCIER HAROLD SIMMONS' VALHI INC ALSO SAID THAT UNION EMPLOYEES AT TITANIUM METALS' HENDERSON NEV PLANT WENT ON STRIKE BUT THAT PRODUCTION CONTINUED THE COMPANY'S CONTRACT WITH THE UNITED STEELWORKERS EXPIRED SATURDAY TREMONT SAID ITS TITANIUM METALS BUSINESS HAD DELAYS OR CANCELLATIONS OF SEVERAL SIGNIFICANT CUSTOMER ORDERS THE METALS AND MINING COMPANY WARNED THAT AS A RESULT OF THE LOSS TITANIUM METALS MAY NOT BE IN COMPLIANCE WITH AN EARNINGS COVENANT UNDER ITS BANK CREDIT AGREEMENT THE COMPANY SAID IT IS CURRENTLY NEGOTIATING WITH ITS BANKS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY TREMONT FELL 1 OR 129 TO 675 9310060064 931006 TECHNOLOGY BRIEF APPLE COMPUTER INC WIRELESS MESSAGING SERVICE TO BE AVAILABLE THIS MONTH APPLE COMPUTER INC SAID A NEW WIRELESS MESSAGING SERVICE FOR ITS NEWTON MESSAGEPAD HANDHELD COMPUTER IS EXPECTED TO BE AVAILABLE OCT 18 THE SERVICE FROM MOBILECOMM A BELLSOUTH CORP UNIT WILL ALLOW USERS TO RECEIVE POSTCARDLENGTH MESSAGES THROUGH A PAGING NETWORK EXPECTED TO INCLUDE 550 US CITIES APPLE SAID MONTHLY FEES ARE EXPECTED TO RANGE FROM 21 FOR LOCAL COVERAGE TO 8395 FOR NATIONWIDE COVERAGE BY CONTRAST A NATIONWIDE PAGING SERVICE CALLED SKYTEL A MOBILE TELECOMMUNICATIONS TECHNOLOGIES CORP UNIT CHARGES 125 A MONTH FOR 100 PAGES EACH OF WHICH CAN BE AS LONG AS 240 CHARACTERS A PAGER IS PROVIDED FREE WITH THE SERVICE THE APPLE SERVICE REQUIRES A CREDITCARDSIZE RECEIVER MADE BY MOTOROLA INC THAT FITS INTO A SLOT IN THE COMPUTER AND IS EXPECTED TO RETAIL FOR 229 9310060063 931006 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED EQUAL TO 90 OR MORE OF SHARES SOLD SHOLDS OTHER CLASS OF STOCK XREFLECTS SHARES HELD INDIRECTLY LATE FILING BASE PERIOD IS LESS THAN 3 YEARS OOFFICER ZOTHER BOUGHT OR SOLD DURING THE LAST 12 WEEKS EXPRESSED AS A PERCENTAGE CHANGE OF ONLY THEIR HOLDINGS AT THE START OF THE PERIOD REFLECTS COMPANIES FOR WHICH FILINGS MADE LAST WEEK SHOWED SOME INSIDER ACTIVITY DURING THE LATEST 12 WEEKS EXCLUDED COMPANIES WITH TOTAL TRADES VALUED UNDER 75000 OPTIONRELATED SALES COMPANIES WITH FEWER THAN THREE BUYERS OR SELLERS OR FEWER BUYERS OR SELLERS THAN THE HISTORICAL AVERAGE FOR THE PERIOD 9310060061 931006 BUSINESS BRIEF MCORP BANK'S REORGANIZATION PLAN IS CONFIRMED BY US JUDGE A FEDERAL JUDGE IN HOUSTON CONFIRMED REORGANIZATION PLANS IN THE BANKRUPTCY CASES OF DALLASBASED MCORP AND TWO UNITS MCORP FINANCIAL INC AND MCORP MANAGEMENT PAYING OUT ABOUT 400 MILLION IN THE BANKING COMPANY'S ASSETS UNDER THE PLAN SENIOR BONDHOLDERS WILL RECOVER ABOUT 90 OF THEIR TOTAL CLAIMS DEPENDING ON HOW MUCH CASH IS RECOVERED BY LIQUIDATING ASSETS ACCORDING TO MITCHELL SEIDER AN ATTORNEY FOR THE BONDHOLDERS HOLDERS OF SUBORDINATED BONDS ARE PROJECTED TO RECOVER 62 MILLION OF THEIR 135 MILLION IN CLAIMS OR LESS THAN FIVE CENTS ON THE DOLLAR THE FEDERAL DEPOSIT INSURANCE CORP WHICH SEIZED 20 OF MCORP'S BANKS IN 1989 WILL RECEIVE 33 MILLION UNDER THE PLAN MCORP FILED FOR BANKRUPTCYLAW PROTECTION AFTER ITS BANKS COLLAPSED THE PLAN WHICH INCLUDED NO PAYOUT FOR COMMON AND PREFERRED STOCK HOLDERS SETTLED MORE THAN 850 MILLION IN CLAIMS 9310060060 931006 A VIEW FROM BELGRADE BELGRADE YUGOSLAVIA WE THE UNDERSIGNED NONE OF US REPRESENTING THE SERBIAN GOVERNMENT WISH TO EXPRESS OUR ASTONISHMENT THAT SO MANY PROMINENT PEOPLE INCLUDING BRITAIN'S FORMER PRIME MINISTER MARGARET THATCHER HAVE BEEN INDUCED TO LEND THEIR NAME TO THE GROSSLY INACCURATE PRONOUNCEMENT PUBLISHED IN YOUR PAPER ON SEPT 2 CALLING FOR WAR AGAINST SERBIA THERE ARE A NUMBERS OF ERRORS THAT WE PROPOSE TO IDENTIFY THE FIRST AND MOST DANGEROUS IS THE USE OF THE WORD BOSNIANS TO DESIGNATE ONLY THE BOSNIANS OF MUSLIM DESCENT IN FACT THESE CONSTITUTE LESS THAN 44 OF THE TOTAL POPULATION OF BOSNIAHERZEGOVINA IT IS A DANGEROUS ERROR BECAUSE BY TREATING THE BOSNIAN SERBS AND BOSNIAN CROATS AS FOREIGNERS IN THEIR OWN LAND THE SIGNATORIES OF THE OPEN LETTER CAN ASSERT AS THEY REPEATEDLY DO THAT THE MUSLIMS ARE VICTIMS OF AGGRESSION STYLED VARIOUSLY IN THE TEXT AS BRUTAL UNOPPOSED AND CLEARCUT IT IS PRECISELY BECAUSE THE SERBS AND CROATS HAVE AS MUCH RIGHT AS THE MUSLIMS TO BE CALLED BOSNIANS THAT IT IS ABSURD TO DRAW AN ANALOGY AS THE OPEN LETTER DOES BETWEEN THE INTERNAL CONFLICT IN BOSNIAHERZEGOVINA AND THE IRAQI INVASION OF KUWAIT THE NEXT IS AN ERROR OF OMISSION THE SIGNATORIES USE THE TERM ETHNIC CLEANSING AS IF IT WERE ONLY THE SERBS WHO THROUGH VIOLENCE AND INTIMIDATION SEEK TO RID THE LAND WHERE THEY LIVE OF THOSE WHO DO NOT BELONG TO THEIR OWN COMMUNITY FROM OFFICIAL COMMUNIQUES IF FROM NO OTHER SOURCE THE WRITERS SHOULD HAVE NOTICED THAT THERE ARE VIRTUALLY NO SERBS LEFT IN MOSTAR AND CENTRAL BOSNIA THEY WERE ALL CLEANSED A YEAR AGO AS SIMON WIESENTHAL PROBABLY THE WORLD'S LEADING AUTHORITY ON WAR CRIMES HAS SAID AUG 12 1992 THE FIRST VICTIMS OF ETHNIC CLEANSING IN THE FORMER YUGOSLAVIA WERE SERBS HARASSED AND PERSECUTED WHEN FRANJO TUDJMAN AND HIS PARTY TOOK POWER IN CROATIA UNDER THE SLOGAN CROATIA FOR THE CROATS TENS OF THOUSANDS OF SERBS FLED FOR THEIR OWN SAFETY INTO SERBHELD LANDS THE LETTER RIGHTLY GRIEVES OVER THE CASES OF MUSLIM CHILDREN ORPHANED MAIMED OR SLAUGHTERED IN THIS PITILESS WAR BUT AS THE INTERNATIONAL RED CROSS HAS FREQUENTLY AFFIRMED THERE HAVE BEEN CHILD CASUALTIES IN ALL THE COMMUNITIES CAN IT NOT ALSO BE SAID OF LITTLE CROATS OR LITTLE SERBS THESE COULD HAVE BEEN OUR CHILDREN THE LETTER DECLARES THAT ANY PARTITION OF BOSNIA IS TOTALLY UNACCEPTABLE BUT THIS IF TRUE WHICH IT IS NOT WAS JUST AS TRUE OF THE FORMER YUGOSLAVIA IN BOTH CASES YUGOSLAV AS WELL AS BOSNIAN THE HISTORICALLY INTERMIXED RELIGIOUS AND ETHNIC COMMUNITIES COULD NOT BE SEPARATED PEACEFULLY WITHOUT THE CONSENT OF THE THREE MAJOR ONES SERB CROAT AND MUSLIM OF COURSE IT WOULD HAVE BEEN VASTLY PREFERABLE IF THE WAR COULD HAVE BEEN AVOIDED AND PEACEFUL COEXISTENCE WERE STILL POSSIBLE BUT GIVEN THE VIOLENCE AND THE SUFFERINGS NONE OF THE THREE COMMUNITIES WILL NOW FEEL SAFE EXCEPT UNDER THE PROTECTION OF ITS OWN INSTITUTIONS WE MUST HOPE THAT AT SOME FUTURE DATE RECONCILIATION WILL BE POSSIBLE BUT FOR THE PRESENT AND FOR THE NEXT FEW YEARS PERHAPS EVEN DECADES SEPARATION HAS BECOME THE ONLY WAY ANOTHER SINISTER ERROR IS TO DEPICT THE RESISTANCE OF THE SERBIAN COMMUNITIES IN CROATIA AND BOSNIA AGAINST BEING FORCIBLY INCORPORATED INTO NEWLY FORMED STATES TO WHICH THEY HAVE NEVER BELONGED AS CONSTITUTING AN IMPERIALIST DRIVE FOR GREATER SERBIA FURTHER IT IS MISLEADING TO DESCRIBE THE MUSLIMCONTROLLED SECTOR OF BOSNIAHERZEGOVINA AS NO MORE THAN UNARMED GHETTOS OR BESIEGED CORRIDORS WHICH WOULD HAVE TO RELY INDEFINITELY ON THE PROTECTION OF THE INTERNATIONAL COMMUNITY IN ANOTHER PART OF THE LETTER THE WRITERS THEMSELVES CONCEDE THAT THE BOSNIAN IE MUSLIM ARMY STILL CONTROLS THE TOWNS CONTAINING MOST OF BOSNIA'S INDUSTRY INCLUDING ITS WEAPONS INDUSTRY INDEED ALIJA IZETBEGOVIC THE BOSNIAN MUSLIM LEADER HIMSELF CONCEDED ON SARAJEVO RADIO AUG 22 THAT UNDER THE PRESENT PEACE PLAN THE MUSLIMS WOULD RECEIVE THE BEST PART OF BOSNIAHERZEGOVINA ITS DEVELOPED PART INDEED MR TUDJMAN HAS CALCULATED THAT IN THE PROPOSED SHAREOUT THE MUSLIMS WOULD GET 19 OF THE 30 PRINCIPAL TOWNS THE CROATS TWO AND THE SERBS NINE NOR CAN THE MUSLIMS BE ACCURATELY DESCRIBED AS UNARMED THE OPEN LETTER ITSELF REFERS TO A HIGHLY MOTIVATED BOSNIAN ARMY AND AS WE HAVE SEEN IN RECENT WEEKS THAT ARMY SUCCESSFULLY MOUNTED A MAJOR OFFENSIVE TO SEIZE LAND HELD BY THE CROATS ANOTHER ABSURDITY IN THE LETTER IS THE APPEAL TO MR CLINTON TO LEAD A COALITION OF WESTERN GOVERNMENTS AGAINST SERBIA HE KNOWS AS THE SIGNATORIES SHOULD THAT THE FREELY ELECTED GOVERNMENTS OF BRITAIN FRANCE AND ITALY OBVIOUSLY INDISPENSABLE TO SUCH A COALITION HAVE FLATLY AND REPEATEDLY OPPOSED THE USE OF FORCE TO SETTLE THE BOSNIAN CONFLICT THE LETTER ALSO ACCUSES THE SERBS OF USING COMMAND HELICOPTERS AND HELICOPTER GUNSHIPS FOR OPERATIONS PURPOSES AGAINST THE MUSLIMS THE WESTERN COUNTRIES AT ENORMOUS COST TO THEMSELVES KEEP AIRCRAFT FLYING INCESSANTLY OVER BOSNIA AND SINCE THEIR ARRIVAL HAVE NOT DETECTED A SINGLE CASE OF SERBIAN USE OF AIR POWER IN COMBAT ACTION INDEED THE ONLY RECENT BATTLE INVOLVING AIRCRAFT WAS WHEN THE CROATS USED MIG21S TO ATTACK THE SERBS IN KRAYINA AND THE SERBS AS CONFIRMED BY UNITED NATIONS MONITORS MANAGED TO DOWN ONE OF THEIR PLANES THE SIGNATORIES ADVOCATE AIR STRIKES AGAINST SERBIAN POSITIONS AROUND SARAJEVO AND AGAINST SERBIA ITSELF ARGUING THAT THESE COULD BE UNDERTAKEN WITH MINIMAL DANGER TO SERBIAN CIVILIANS OR TO UNPROFOR UN PROTECTIVE FORCE TROOPS THEY SEEM TO HAVE LEARNED NOTHING FROM EFFORTS AT PRECISION BOMBING FIRST IN THE GULF WAR AND NOW IN SOMALIA THEIR FAVORED MILITARY OPTION SURGICAL AIR STRIKES HAS BEEN ROUNDLY CONDEMNED BY EVERY SINGLE ONE OF THE UN COMMANDERS IN THE FIELD THE SIGNATORIES PLEAD PASSIONATELY FOR WHAT THEY CALL THE SURVIVAL OF A FREE MULTIETHNIC BOSNIA SUCH AN ENTITY AS THEY OUGHT TO KNOW HAS NEVER EXISTED AS AN INDEPENDENT STATE IN FACT IT HAS NEVER BEEN ANY MORE THAN A FIGMENT OF THE IMAGINATION OF THOSE WHO WISH TO PROLONG THE WAR UNTIL A UNITARY MUSLIMDOMINATED BOSNIA IS IMPOSED FURTHER THE ALLEGATION THAT IT IS ONLY THE SERBS WHO CONSTANTLY VIOLATE MILITARY TRUCES CONTRADICTS ALL AVAILABLE EVIDENCE ALL THREE SIDES HAVE REPEATEDLY BROKEN CEASEFIRES AND THE PRINCIPAL VIOLATORS IN RECENT WEEKS HAVE BEEN THE MUSLIM FORCES ANOTHER FALSE IMPRESSION IS CREATED BY THE WARNINGS AGAINST THE FALL OF SARAJEVO ACCORDING TO LORD OWEN'S MILITARY ADVISERS AND OTHER INDEPENDENT OBSERVERS THE SERBS HAD THEY WANTED TO COULD HAVE CAPTURED THIS CITY MONTHS AGO EQUALLY REMOTE FROM THE REAL WORLD IS THE CLAIM THAT THE SERBS NEED TO BE STOPPED FROM ETHNIC CLEANSING OF ALBANIANS IN KOSOVO AND HUNGARIANS IN VOJVODINA THE STOPPING WOULD ONLY MAKE SENSE IF ANY SANE SERB HAD EVER THOUGHT OF STARTING SUCH A LUNATIC PROCESS SERBIA ITSELF OF WHICH THE TWO TERRITORIES MENTIONED ARE PROVINCES HAS ALWAYS BEEN A MULTIETHNIC STATE AS THE SIGNATORIES THEMSELDLY KNOW AT PRESENT MORE THAN 30 OF ITS POPULATION IS MADE UP OF NONSERBS AT THE END OF THE LETTER IT IS SUGGESTED THAT A CONCILIATORY POLICY TOWARD SERBIA WILL ENCOURAGE DREADFUL DEEDS IN THE TERRITORIES OF THE FORMER SOVIET UNION CAN MRS THATCHER AND HER FRIENDS SERIOUSLY SUPPOSE THAT POLITICAL LEADERS IN MOSCOW TBILISI BAKU OR DUSHANBE WILL MAKE THEIR DECISIONS IN THE LIGHT OF THE EVENTS IN THE FORMER YUGOSLAVIA WITH A SINGLE SENTENCE OF THE OPEN LETTER WE ARE IN COMPLETE AGREEMENT EMPTY THREATS HAVE A PERVERSE EFFECT THE THREATS CONTAINED IN IT WILL COMFORT ONLY THOSE WHO OPPOSE THE PEACE PLAN AND WHO FAVOR CONTINUING THE WAR THROUGH THE COMING WINTER IF THE WESTERN COUNTRIES REALLY BECOME PERSUADED TO DROP BOMBS ON SERBIA ITS ORDINARY CITIZENS WILL CERTAINLY REGARD THE ATTACKS AS A CASE OF UNPROVOKED AGGRESSION SEE RELATED ARTICLE THE CASE AGAINST SERBIA AGAIN WSJ OCT 12 1993 9310060060 YY93 MM10 9310060059 931006 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 AMR CORP 300 MILLION OF FLOATINGRATE NOTES DUE NOV 15 1995 PRICED AT 99821 TO YIELD 4375 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 109 BASIS POINTS ABOVE THREEMONTH LONDON INTERBANK OFFERED RATE THE RATE WILL PAY AND FLOAT QUARTERLY AT 100 BASIS POINTS ABOVE THREEMONTH LIBOR RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC ARKANSAS POWER & LIGHT CO 155 MILLION OF FIRSTMORTGAGE BONDS DUE OCT 1 2003 PRICED AS 6S AT 9875 TO YIELD 6169 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 85 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE BONDS WERE SOLD IN A COMPETITIVE BID WON BY KIDDER PEABODY & CO ARKANSAS POWER IS A UNIT OF ENTERGY CORP CARD ESTABLISHMENT SERVICES INC 125 MILLION OF SENIOR SUBORDINATED NOTES DUE OCT 1 2003 PRICED AT PAR TO YIELD 10 THE DEBENTURES CALLABLE AFTER FIVE YEARS WERE SOLD IN THE 144A PRIVATEPLACEMENT MARKET RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES INC DELPHI FINANCIAL GROUP INC 85 MILLION OF 8 SENIOR NOTES DUE 2003 PRICED AT 99456 TO YIELD 808 ACCORDING TO THE COMPANY MERRILL LYNCH & CO IS MANAGING UNDERWRITER IMC FERTILIZER GROUP INC 160 MILLION OF SENIOR NOTES DUE OCT 1 2000 PRICED AT PAR TO YIELD 925 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES ARE RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC PACIFIC BELL 550 MILLION OF DEBENTURES DUE OCT 15 2034 PRICED AS 6625S AT 96523 TO YIELD 688 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 20 YEARS WERE PRICED AT A SPREAD OF 72 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC PACIFIC BELL IS A PACIFIC TELESIS GROUP UNIT ATCHISON CASTING CORP INITIAL PUBLIC OFFERING OF 22 MILLION COMMON SHARES AT 12 EACH ACCORDING TO THE COMPANY THE OFFERING WAS UNDERWRITTEN BY PRUDENTIAL SECURITIES INC AND GEORGE K BAUM & CO LAFARGE CORP FIVE MILLION COMMON SHARES PRICED AT 1825 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO WERNER ENTERPRISES INC THREE MILLION COMMON SHARES PRICED AT 2375 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC TWO MILLION SHARES ARE OFFERED BY THE COMPANY AND ONE MILLION BY SHAREHOLDERS CONNECTICUT 260 MILLION OF SERIES 1993E GENERALOBLIGATION BONDS PRICED BY A JP MORGAN SECURITIES INC GROUP YIELDS RANGE FROM 31 IN 1995 TO 515 IN 2012 MOODY'S RATED THE BONDS DOUBLEA S&P ASSIGNED A DOUBLEAMINUS RATING AND FITCH INVESTORS SERVICE INC ASSIGNED A DOUBLEAPLUS RATING EASTERN CONNECTICUT RESOURCE RECOVERY AUTHORITY 1276 MILLION SOLIDWASTE REVENUE BONDS PRICED BY AN ALEX BROWN & SONS INC GROUP INCLUDED ARE 1143 MILLION OF SERIES 1993A BONDS SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX WITH YIELDS FROM 47 IN 2000 TO 574 IN 2020 THERE ARE ALSO 133 MILLION OF TAXABLE SERIES 1993B BONDS PRICED TO YIELD FROM 55 IN 1998 TO 75 IN 2020 S&P RATED THIS ISSUE SINGLEA NEW YORK CITY 5747 MILLION OF FISCAL 1994 SERIES C FIXEDRATE GENERALOBLIGATION BONDS PRICED BY A LEHMAN BROTHERS INC GROUP YIELDS RANGE FROM 35 IN 1995 TO 58 IN 201422 MOODY'S RATED THE FIXEDRATE BONDS BAA1 AND S&P ASSIGNED A SINGLEAMINUS RATING PORT AUTHORITY OF NEW YORK AND NEW JERSEY 3379 MILLION OF VARIOUS CONSOLIDATED REVENUE BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP MERRILL LYNCH IS BELIEVED TO HAVE WON THE 2379 MILLION 88TH SERIES BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 44236 YIELDS FOR THOSE BONDS RANGE FROM 27 IN 1994 TO 485 IN 2008 THE PORT AUTHORITY'S 100 MILLION OF 89TH SERIES BONDS APPARENTLY WERE WON BY MERRILL LYNCH WITH A BID SETTING THE TRUE INTEREST COST AT 51387 THIS PORTION OF THE OFFERING HAS BONDS THAT YIELD AS LOW AS 425 IN 2001 BONDS MATURING IN 2021 ARE 5125S PRICED AT 99 MOODY'S RATED THE BONDS SINGLEA1 AND S&P ASSIGNED A DOUBLEAMINUS RATING TEXAS TURNPIKE AUTHORITY 142 MILLION OF SERIES 1993 REVENUE REFUNDING BONDS PRICED BY A PAINEWEBBER INC GROUP YIELDS RANGE FROM 325 IN 1995 TO 533 IN 2020 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY UBS SECURITIES INC THE OFFERING SERIES GOLD 1623 IS BACKED BY THE AGENCY'S 30YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 665 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES G022 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 148 BILLION OF STRIPPED MORTGAGEBACKED SECURITIES OFFERED BY VARIOUS UNDERWRITERS TRUST 250 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS UNDERWRITERS INCLUDE GOLDMAN SACHS & CO GREENWICH CAPITAL MARKETS INC BEAR STEARNS & CO KIDDER PEABODY & CO PAINEWEBBER INC PRUDENTIAL SECURITIES INC JP MORGAN SECURITIES INC UBS SECURITIES INC AND SMITH BARNEY SHEARSON INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 400 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993216 IS BACKED BY THE AGENCY'S PRINCIPALONLY STRIPS WHICH IN TURN ARE BACKED BY 30YEAR 8 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 85 AND WEIGHTED AVERAGE MATURITY OF 346 MONTHS CIR INTERNATIONAL SA ITALIAN PARENT 282 BILLION LIRE OF EXCHANGEABLE EUROBONDS DUE 1998 AT ISSUE PRICE 815 VIA LEHMAN BROTHERS INTERNATIONAL COUPON INDICATED AT 183 TO 224 BONDS EXCHANGEABLE INTO ORDINARY SHARES OF ING C OLIVETTI & CO AT INDICATED PREMIUM 12 TO 15 ABOVE AVERAGE CLOSING SHARE PRICE OF THREE DAYS UP TO FIXING DATE OF WEDNESDAY OR THURSDAY INDICATED EXCHANGE PRICE 218 TO 227 LIRE PER OLIVETTI SHARE YIELD TO MATURITY 625 TO 675 BONDS CALLABLE IN YEARS TWO AND THREE SUBJECT TO THEN PREVAILING SHARE PRICE BEING AT LEAST 130 OF EXCHANGE PRICE GUARANTOR COMPAGNIE INDUSTRIALI RIUNITE SPA FEES 25 DENMARK SOVEREIGN SEVEN BILLION FRENCH FRANCS OF 55 EUROBONDS DUE OCT 26 1999 AT ISSUE AND REOFFER PRICE 9861 VIA BANQUE PARIBAS BONDS YIELD 578 A MARGIN OF 15 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY FEES 0275 DEPARTEMENT DES HAUTSDESEINE FRANCE 700 MILLION FRENCH FRANCS OF 625 EUROBONDS DUE NOV 9 2004 AT ISSUE PRICE 10118 VIA DEUTSCHE BANK FRANCE SNC REOFFERED AT 9953 TO YIELD 631 A SPREAD OF 22 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY FEES TWO INTERAMERICAN DEVELOPMENT BANK SUPRANATIONAL 250 MILLION CANADIAN DOLLARS OF 725 EUROBONDS DUE NOV 3 2003 AT ISSUE PRICE 10074 VIA SWISS BANK CORP REOFFERED AT 99065 TO YIELD 739 A SPREAD OF 23 BASIS POINTS OVER COMPARABLE CANADIAN GOVERNMENT BOND FEES 185 SINO LAND HONG KONG 175 MILLION OF 5 CONVERTIBLE EUROBONDS DUE OCT 21 2000 AT ISSUE PRICE PAR VIA JARDINE FLEMING BONDS CONVERTIBLE INTO ORDINARY SHARES OF COMPANY AT CONVERSION PRICE HK686 CONVERTIBLE FROM 30 DAYS AFTER SETTLEMENT DATE FOREIGN EXCHANGE RATE FIXED AT HK773808 PER US DOLLAR BONDS CALLABLE ANNUALLY FROM OCTOBER 1997 AT 104 DECLINING BY 1 ANNUALLY TO PAR SUBJECT TO PREVAILING SHARE PRICE BEING AT LEAST 140 OF CONVERSION PRICE FEES UNDECIDED 9310060058 931006 BUSINESS BRIEF VERIFONE INC STOCK DROPS 33 ON OUTLOOK FOR LOWER 3RDQUARTER NET VERIFONE INC SAID IT EXPECTED TO REPORT THAT THIRDQUARTER PROFIT WAS LOWER THAN ANTICIPATED SPARKING A 33 PLUNGE IN THE COMPANY'S STOCK YESTERDAY THE REDWOOD CITY CALIF MAKER OF DEVICES USED TO VERIFY CREDITCARD AND DEBITCARD TRANSACTIONS SAID IT EXPECTS TO REPORT THIRDQUARTER PROFIT FIVE CENTS TO EIGHT CENTS A SHARE LOWER THAN THE 29 CENTS REPORTED FOR THE YEAREARLIER PERIOD SALES ARE EXPECTED TO BE ABOUT 20 HIGHER THAN THE 58 MILLION REPORTED IN THE COMPARABLE 1992 QUARTER THE COMPANY SAID VERIFONE ATTRIBUTED THE RESULTS TO LOWERTHANEXPECTED REVENUE IN NEW MARKETS INCREASED COMPETITION IN INTERNATIONAL MARKETS AND A SHIFT TOWARD LESSPROFITABLE PRODUCTS VERIFONE STOCK CLOSED AT 1750 DOWN 875 IN NATIONAL OVERTHECOUNTER TRADING 9310060057 931006 NOTABLE & QUOTABLE CHARLES KRAUTHAMMER WRITING FRIDAY IN THE WASHINGTON POST ON THE PROBLEMS OF HUMANITARIAN INTERVENTION ONE REASON THAT THE UNITED STATES AND THE SOVIET UNION RARELY ENGAGED THEIR TROOPS IN UN PEACEKEEPING DURING THE COLD WAR IS THAT SUPERPOWERS MAKE TOO LARGE A TARGET AN AMERICAN PATROL TAKEN HOSTAGE IS OF FAR GREATER VALUE THAN A MOROCCAN ONE SHOOTING DOWN AN AMERICAN HELICOPTER IS A FAR GREATER PRIZE THAN AMBUSHING A PAKISTANI PATROL 9310060056 931006 BUSINESS BRIEF RASTEROPS CORP OPERATING LOSS TO BE POSTED FOR THE FISCAL FIRST QUARTER RASTEROPS CORP SAID IT WILL POST A SIGNIFICANT OPERATING LOSS FOR ITS FISCAL FIRST QUARTER AND IN ADDITION WILL TAKE A CHARGE OF 5 MILLION TO 7 MILLION TO RESTRUCTURE OPERATIONS THE SANTA CLARA CALIF COMPANY ALSO SAID REVENUE FOR THE QUARTER ENDED SEPT 30 WAS DOWN 15 TO 20 FROM THE YEAREARLIER PERIOD FOR WHICH IT POSTED REVENUE OF 254 MILLION AND A NET LOSS OF 43 MILLION OR 53 CENTS A SHARE RASTEROPS WHICH MAKES CIRCUIT BOARDS USED TO DISPLAY ADVANCED COMPUTER GRAPHICS AND VIDEO BLAMED THE ESTIMATED RESULTS ON DELAYS RELATED TO INTRODUCING A NEW GENERATION OF PRODUCTS SOFTNESS IN EUROPEAN MARKETS AND A TRANSITION TO NEW SALES PROCEDURES THE ANNOUNCEMENT WAS MADE AFTER MARKETS CLOSED IN TRADING ON THE OVERTHECOUNTER MARKET RASTEROPS CLOSED UNCHANGED AT 9 A SHARE 9310060055 931006 EMERSON RADIO STOCK SUSPENDED NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT SUSPENDED TRADING IN THE COMMON STOCK OF EMERSON RADIO CORP INDEFINITELY BECAUSE THE COMPANY NO LONGER MEETS THE BIG BOARD'S MINIMUM CRITERIA FOR LISTING LAST WEEK EMERSON RADIO OF PARSIPPANY NJ FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE BANKRUPTCY CODE THE COMPANY'S COMMON STOCK HASN'T TRADED SINCE SEPT 29 9310060054 931006 BUSINESS BRIEF HILLS STORES CO RETAILER LEAVES BANKRUPTCY WITH NEW CREDIT AND NAME HILLS DEPARTMENT STORES SAID IT EMERGED MONDAY FROM 32 MONTHS OF BANKRUPTCYLAW PROTECTION WITH A 225 MILLION UNSECURED LINE OF CREDIT FROM A SYNDICATE OF BANKS HEADED BY CHEMICAL BANK THE CANTON MASS COMPANY HAS A NEW CORPORATE NAME HILLS STORES CO AND WILL CONTINUE TO BE LISTED ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL HDS SINCE HILLS FILED FOR BANKRUPTCYLAW PROTECTION IN FEBRUARY 1991 IT HAS CLOSED 63 STORES AND REDUCED ITS WORK FORCE TO 18000 FROM ABOUT 26000 THE COMPANY SETTLED 721 MILLION OF CREDITOR CLAIMS FOR A VALUE OF ABOUT 540 MILLION AND HILLS'S 5000 VENDORS WILL RECEIVE AN AVERAGE PAYOUT OF 71 OF THEIR TOTAL CLAIMS THE COMPANY SAID MICHAEL BOZIC HILLS'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY HAS REMODELED 78 OF ITS 151 DISCOUNT STORES AND PLANS TO REMODEL THE OTHER 73 STORES OVER THE NEXT TWO YEARS MR BOZIC SAID THE COMPANY IS ACTIVELY SEEKING EXPANSION OPPORTUNITIES NOW THAT IT HAS EMERGED FROM BANKRUPTCY 9310060053 931006 BOMBAY SEPTEMBER SALES ROSE FORT WORTH TEXAS BOMBAY CO SAID SALES FOR THE FIVE WEEKS ENDED OCT 3 ROSE 40 TO 238 MILLION FROM 17 MILLION IN THE YEAREARLIER PERIOD THE SPECIALTY RETAILER SAID SALES AT STORES OPEN MORE THAN A YEAR INCREASED 21 IN THE PERIOD THE COMPANY SAID ITS SAMESTORES SALES INCLUDES 33 STORES WHICH WERE CONVERTED TO A LARGER STORE FORMAT DURING THE PAST TWELVE MONTHS 9310060052 931006 REVIEW & OUTLOOK EDITORIAL ASIDES HOUSE BANK EPILOGUE JACK RUSS THE HOUSE'S TOP ADMINISTRATOR UNTIL LAST YEAR HAS AGREED TO PLEAD GUILTY TO STEALING 75300 FROM THE HOUSE BANK WHEN THE HOUSE BANK SCANDAL BROKE IN 1991 HOUSE LEADERS ASSURED THE PUBLIC THERE WAS NO NEED FOR AN INVESTIGATION SPEAKER TOM FOLEY CLAIMED THE BANK SCANDAL WAS MERELY A HOUSEKEEPING PROBLEM AND DECLARED THIS IS NOW A MATTER THAT IS OVER AND DONE WITH IT WAS EVENTUALLY LEARNED THAT 55 MEMBERS HAD USED THE BANK TO GET LARGE NOINTEREST LOANS MOST OF THE ABUSERS EITHER RETIRED OR WERE DEFEATED BACK IN 1989 MR FOLEY LEARNED THAT MR RUSS HAD BOUNCED 31 PERSONAL CHECKS FOR 104825 AT THE BANK HE WAS INFORMED OF THE OVERDRAFTS IN A PERSONAL LETTER BY COMPTROLLER GENERAL CHARLES A BOWSHER IN DECEMBER 1989 MR RUSS MADE GOOD HIS CHECKS BUT WAS ALLOWED TO KEEP HIS JOB FOR ANOTHER TWO YEARS THE NEXT TIME HOUSE LEADERS SAY NOT TO WORRY ABOUT A SCANDAL WE HOPE OUR SKEPTICISM WILL BE EXCUSED 9310060051 931006 PLEA LAST MONTH FOR ARMOR IN SOMALIA WAS IGNORED IN US ARMY AIDES SAY BY THOMAS E RICKS AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON US CASUALTIES IN SOMALIA THIS WEEK MIGHT HAVE BEEN FAR LIGHTER IF A REQUEST MADE LAST MONTH BY THE US COMMANDER THERE FOR ADDITIONAL ARMORED PROTECTION HAD BEEN ACTED ON BY DEFENSE SECRETARY LES ASPIN ARMY OFFICIALS SAID IN EARLY SEPTEMBER ARMY MAJ GEN THOMAS MONTGOMERY THE DEPUTY COMMANDER OF THE UNITED NATIONS MILITARY FORCE IN SOMALIA AND COMMANDER OF THE US CONTINGENT THERE TOLD HIS SUPERIORS IN THE US THAT HE NEEDED A BATTALION OF ARMORED TROOPS THAT IS ABOUT 600 TO 800 SOLDIERS WITH ABOUT 55 TANKS OR ARMORED PERSONNEL CARRIERS TO PROTECT THE LIGHT INFANTRY ALREADY THERE THE REQUEST IN SOMEWHAT REDUCED FORM WAS RELAYED BY MARINE GEN JOSEPH HOAR HEAD OF THE US CENTRAL COMMAND WHICH OVERSEES SOMALIA AND FORWARDED TO THE JOINT CHIEFS OF STAFF THE DISCLOSURES COULD AGGRAVATE CONGRESS'S ALREADY SOUR MOOD OVER THE SOMALIA SITUATION THE SENATE APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD HAS VOWED TO PRESS FOR A VOTE THIS WEEK ON A CUTOFF OF FUNDS FOR THE MISSION THE CLINTON ADMINISTRATION IS ANXIOUS FOR MORE TIME AND THE PRESIDENT IS SCHEDULED TO MEET TODAY WITH TOP NATIONAL SECURITY ADVISERS AND MILITARY LEADERS IN THE EXPECTATION OF ANNOUNCING A POLICY DECISION SOON WHILE GEN MONTGOMERY'S REQUEST FOR ARMORED TROOPS WAS NEVER FORMALLY REJECTED IT WASN'T ACTED ON EITHER DESPITE EXTENSIVE DISCUSSIONS DOWN THE CHAIN OF COMMAND FRUSTRATED BY THE INACTION SENIOR ARMY OFFICERS AT LEAST ONCE INFORMALLY PRODDED THE STAFF OF THE JOINT CHIEFS FOR ACTION AN ARMY OFFICER SAID MR ASPIN DECLINED AT THE TIME TO SEND THE ARMORED TROOPS AFTER RECEIVING CONFLICTING ADVICE FROM GEN COLIN POWELL AND OTHER MEMBERS OF THE JOINT CHIEFS A PENTAGON OFFICIAL SAID OTHERS FAMILIAR WITH THE SITUATION SAID THERE WAS LITTLE SENSE OF URGENCY AT THE PENTAGON WHEN THE REQUEST ARRIVED AND THE NEED FOR THE ARMORED VEHICLES WASN'T AS CLEAR LAST MONTH AS IT IS NOW PARTLY BECAUSE THE FORCES OF SOMALI WARLORD MOHAMED AIDID HADN'T YET BEGUN TO SHOW HOW ADEPT THEY COULD BE AT SHOOTING DOWN US HELICOPTERS IN ADDITION THEY SAID COMMANDERS ON THE GROUND ALWAYS ASK FOR MORE RESOURCES THAN THEY REALLY NEED HOWEVER IN THE WAKE OF SUNDAY'S FIGHTING WHICH MORE THAN DOUBLED THE NUMBER OF US COMBAT DEATHS IN SOMALIA THE PENTAGON ACTED QUICKLY TO FULFILL GEN MONTGOMERY'S REQUEST MR ASPIN ORDERED THE DEPLOYMENT OF FOUR HEAVY TANKS AND 14 BRADLEY FIGHTING VEHICLES AND OTHER EQUIPMENT MAKING UP ABOUT ONETHIRD OF WHAT THE GENERAL ASKED FOR LAST MONTH MR ASPIN'S FAILURE TO ACT ON GEN MONTGOMERY'S REQUEST IS ALREADY PROVOKING MEMBERS OF CONGRESS IRATE OVER THE SEVENHOUR DELAY THAT OCCURRED SUNDAY BEFORE A GROUP OF US TROOPS WERE RESCUED IN DOWNTOWN MOGADISHU THE BULK OF THE NEARLY 100 CASUALTIES THAT THE US FORCES SUFFERED IN THE SOMALI CAPITAL OCCURRED DURING THOSE SEVEN HOURS BEFORE UN FORCES WERE ABLE TO RESCUE A GROUP OF 90 US ARMY RANGERS PINNED DOWN UNDER HEAVY FIRE WITHOUT ARMORED PROTECTION THE US WAS FORCED TO RELY ON PAKISTANI AND MALAYSIAN ARMORED VEHICLES TO RESCUE THE RANGERS BECAUSE IT HAD NO TANKS OF ITS OWN ABOUT 70 OF THE 90 RANGERS WERE KILLED OR WOUNDED IN THE FIREFIGHT THE NERVOUSNESS IN CONGRESS WAS EVIDENT YESTERDAY AFTERNOON DURING A CROWDED CLOSEDDOOR CAPITOL BRIEFING WITH SCORES OF LAWMAKERS AND HIGH ADMINISTRATION OFFICIALS DEFENSE SECRETARY ASPIN AND SECRETARY OF STATE WARREN CHRISTOPHER INTENDED TO CONSULT WITH CONGRESS ON THE SOMALIA POLICY BUT THE FORMAT AND LACK OF SPECIFIC ANSWERS ONLY ANGERED MEMBERS AND REINFORCED THE PERCEPTION THAT THE MISSION'S GOALS REMAIN UNCLEAR THE PRESSURE NOW IS FOR THE WHITE HOUSE TO NARROW THE AMERICAN MISSION IN ORDER TO EXPEDITE WITHDRAWAL ANOTHER ALTERNATIVE CALLING FOR A LARGER BUILDUP IS FAVORED BY SOME PROMINENT LAWMAKERS WHO FEAR THE US WOULD OTHERWISE BE SEEN AS DESERTING THE UN BUT THIS WOULD REQUIRE A CONSENSUS AND RESOLVE THAT DIDN'T SHOW ITSELF YESTERDAY EITHER HAVE A BUILDUP OR GET OUT AS SOON AS POSSIBLE DECLARED REP JOHN MURTHA D PA CHAIRMAN OF THE HOUSE APPROPRIATIONS DEFENSE SUBCOMMITTEE SENATE MAJORITY LEADER GEORGE MITCHELL SAID I'D BE AMAZED IF THE THE SENATE VOTED FOR AN IMMEDIATE WITHDRAWAL AS LONG AS WE HAVE HOSTAGES OVER THERE AMONG REPUBLICAN CONSERVATIVES THERE WAS OPEN HOSTILITY AND WHILE SENATE GOP LEADER ROBERT DOLE ARGUED TO GIVE MR CLINTON UNTIL OCT 15 TO SPELL OUT HIS GOALS RANKANDFILE MEMBERS WERE CLEARLY FRUSTRATED NOT A CHANCE SAID REP HARRY JOHNSTON D FLA WHO HEADS THE HOUSE FOREIGN AFFAIRS AFRICA SUBCOMMITTEE WHEN ASKED IF A MAJORITY IN THE HOUSE WOULD VOTE TO SUSTAIN FUNDING FOR THE SOMALIA MISSION 9310060050 931006 MARKETING & MEDIA EZ TO BUY SACRAMENTO STATION FAIRFAX VA EZ COMMUNICATIONS INC SAID IT AGREED TO BUY RADIO STATION KNCIFM IN SACRAMENTO CALIF FROM NATIONWIDE COMMUNICATIONS INC COLUMBUS OHIO THE PRICE WASN'T DISCLOSED THE ACQUISITION WILL GIVE EZ A SECOND FULLPOWER FM STATION TO OPERATE IN COMBINATION WITH KRAKAM/FM UNDER TERMS OF THE PURCHASE EZ PLANS TO SELL KQBRFM WHOSE COVERAGE AREA ISN'T AS LARGE AS KNCI'S WITH THE PURCHASE OF THE SACRAMENTO STATION AND THE PENDING PURCHASES OF A PITTSBURGH STATION AND TWO ST LOUIS STATIONS EZ WOULD OWN 13 RADIO STATIONS 9310060048 931006 BUSINESS BRIEF MFS COMMUNICATIONS CO UNIT TRIES TO WIN CUSTOMERS FROM NEW YORK TELEPHONE MFS COMMUNICATIONS CO SAID ITS NEW MFS INTELENET INC UNIT OAKBROOK TERRACE ILL WILL OFFER LOCAL AND LONGDISTANCE SERVICES TO SMALL COMPANIES AND MEDIUMSIZED BUSINESSES IN NEW YORK CITY A MOVE AIMED AT WOOING AWAY PART OF NEW YORK TELEPHONE'S CUSTOMER BASE MFS SAID ITS SERVICES ARE AVAILABLE IMMEDIATELY IN MANHATTAN AND WILL BE EXTENDED TO THE REST OF THE NEW YORK METROPOLITAN AREA OVER THE NEXT FEW MONTHS THE COMPANY PREVIOUSLY PROVIDED BIG CORPORATIONS LOCAL TRANSPORT OF PHONE CALLS AND DATA TO LONGDISTANCE CARRIERS THROUGH HIGHCAPACITY FIBEROPTIC TRANSMISSION LINES NOW IT PLANS TO HAUL THAT TRAFFIC ON A LOCAL BASIS FOR ANY COMPANY MFS SAID IT WILL INSTALL MASSIVE SWITCHES MADE BY SWEDEN'S LM ERICSSON TELEPHONE CO TO HANDLE THE TRAFFIC IT'S ANOTHER COMPETITIVE ARROW SHOT AGAINST NYNEX CORP'S NEW YORK TELEPHONE CO UNIT SAID JACK GRUBMAN ANALYST AT PAINEWEBBER 9310060047 931006 UNITED AIRLINES TRAFFIC RISES 31 CHICAGO UNITED AIRLINES SAID ITS SEPTEMBER TRAFFIC ROSE 31 TO 867 BILLION REVENUE PASSENGER MILES FROM 841 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED DECLINED TO 683 FROM 716 FOR THE FIRST NINE MONTHS OF 1992 THE UAL CORP UNIT SAID IT FLEW 764 BILLION REVENUE PASSENGER MILES UP 95 FROM 698 BILLION MILES A YEAR EARLIER LOAD FACTOR SLIPPED TO 674 FROM 685 9310060046 931006 NIGHT SHIFT GM HOPES TO AWAKEN PROFITS BY OPERATING PLANTS 24 HOURS A DAY ROUNDTHECLOCK ASSEMBLY INTERESTS OTHER CAR FIRMS AS A WAY TO CURB COSTS OVERNIGHT IN A TRUCK FACTORY BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL OSHAWA ONTARIO IT'S 2 AM AND AS YOU MIGHT EXPECT THE GENERAL MOTORS CORP TRUCK PLANT HERE IS MOSTLY DESERTED BUT WAIT SOMETHING STRANGE IS GOING ON EVERY FEW MINUTES A HORN BLASTS THROUGH THE EERIE STILLNESS AND SQUADS OF WORKERS MATERIALIZE SCURRYING FROM ONE SECTION OF THE PLANT TO ANOTHER SOON SPARKS FLY FROM GIANT WELDING ROBOTS AND THE CLANK OF TRUCK MAKING RESUMES ALL THROUGH THE NIGHT THE HORN SOUNDS THE WORKERS MARCH AND THE FACTORY SLOWLY SPITS OUT NEW PICKUPS THIS IS A 24HOURADAY ASSEMBLY PLANT IT IS ONE OF THE WAYS THAT GM IS TRYING TO TURN ITS INEFFICIENT MONEYLOSING NORTH AMERICAN AUTOMOTIVE UNIT AROUND AND THE IDEA HAS GREAT ALLURE AS A WAY OF HOLDING DOWN INVESTMENT COSTS WHILE BOOSTING PRODUCTION OF POPULAR MODELS WHILE IT WOULD HELP GM FIND JOBS FOR LAIDOFF WORKERS IN SOME LOCATIONS IT COULD ALSO RESULT IN MORE PLANT CLOSINGS WHICH WOULD PROVOKE A BACKLASH FROM THE UNITED AUTO WORKERS UNION GM AND THE UAW BEGIN NEGOTIATIONS ON A NEW THREEYEAR CONTRACT TODAY AND JOB SECURITY DURING GM'S WRENCHING RESTRUCTURING WILL BE A HUGE ISSUE WHILE CONTINUOUS PRODUCTION HAS LONG BEEN COMMON IN CERTAIN INDUSTRIES SUCH AS OIL REFINING OR CHEMICAL MANUFACTURING UNTIL RECENTLY IT WAS REGARDED AS IMPRACTICAL FOR ASSEMBLING CARS BUT THAT WAS BEFORE ROUNDTHECLOCK PRODUCTION HELPED SAVE GM IN EUROPE NOW CHRYSLER CORP AND FIAT SPA AMONG OTHERS ARE TRYING IT AND FORD MOTOR CO WHICH HAS LONG RESISTED THE IDEA AND INSTEAD HAS RUN HEAVY OVERTIME FOR YEARS IN ITS PLANTS IS LOOKING AT THE APPROACH IN FORD'S NEW CONTRACT WITH THE UAW THE COMPANY AND THE UNION AGREED TO STUDY THE FEASIBILITY OF USING THREE CREWS TO RUN FORD PLANTS 20 HOURS A DAY SIX DAYS A WEEK ROUNDTHECLOCK PRODUCTION POSES DAUNTING NEW PROBLEMS FOR AUTO PLANTS IT MEANS FIGURING OUT HOW TO CONDUCT CRUCIAL AND SOMETIMES DELICATE MAINTENANCE CHORES SUCH AS SERVICING WELDING MACHINES AND CLEANING PAINT BOOTHS WHILE THE PLANT IS STILL RUNNING AND IT USUALLY REQUIRES ADDING NEW WORKERS AT A TIME WHEN MOST COMPANIES ARE STRAINING TO KEEP THEIR PAYROLLS DOWN AND FOR SOME EMPLOYEES ADJUSTING TO A NEW WORK SCHEDULE IS A BIG PROBLEM AT GM'S SATURN PLANT IN SPRING HILL TENN WHERE THREE CREWS THIS SUMMER BEGAN OPERATING THE PLANT 20 HOURS A DAY SIX DAYS A WEEK WORKERS HAVE COMPLAINED OF DISORIENTATION BECAUSE THEY WORK DIFFERENT HOURS AND DAYS EACH WEEK I'M CONSTANTLY TIRED COMPLAINS BOB HOSKINS A UNION REPRESENTATIVE EMPLOYED AT THE PLANT THERE'S NO WAY HUMANLY POSSIBLE YOUR BODY CAN ADJUST AND LATELY SATURN HAS TAKEN TO OPERATING SEVEN DAYS A WEEK IN A PUSH TO BREAK EVEN THIRD SHIFTS CAN ALSO COME AT THE EXPENSE OF SOME PRODUCTION IN THE EARLIER SHIFTS WHEN CHRYSLER ADDED A THIRD WORK TURN AT ITS ST LOUIS MINIVAN PLANT LAST YEAR THE FACILITY WENT FROM OPERATING TWO EIGHTHOUR SHIFTS TO THREE SEVENHOUR SHIFTS AND UNDER ITS UNION AGREEMENT CHRYSLER STILL HAD TO PAY THE WORKERS FOR EIGHT HOURS OF WORK THE BENEFITS APPARENTLY OUTWEIGH THE COSTS CHRYSLER RECENTLY SAID IT WILL RUN THREE 7HOUR SHIFTS AT ITS MINIVAN PLANT IN WINDSOR ONTARIO BEGINNING DEC 13 FOR GM 24HOUR PRODUCTION WON'T SOLVE ALL OF ITS PROBLEMS IF THE AILING NO 1 AUTO MAKER DOESN'T STOP LOSING MARKET SHARE THERE WON'T BE MUCH CALL FOR PRODUCING CARS ROUNDTHECLOCK AND GM IS STILL YEARS AND BILLIONS OF DOLLARS AWAY FROM INTRODUCING TRULY COMPETITIVE PRODUCTS IN THE BREADANDBUTTER SEGMENTS OF THE MARKET BUT MORE THAN ANY OF ITS COMPETITORS GM IS COMMITTED TO 24HOURADAY PLANTS HERE AT THE OSHAWA TRUCK PLANT FOR EXAMPLE GM WILL EVENTUALLY PRODUCE AN EXTRA 48000 UNITS A YEAR OF ONE OF ITS HOTTEST PRODUCTS THE EXTENDEDCAB FULLSIZE PICKUP THAT AMOUNTS TO AN 18 INCREASE FOR NO ADDITIONAL INVESTMENT AND EVEN THOUGH WORKERS ELSEWHERE HAVE HAD PROBLEMS WITH 24HOUR OPERATIONS HERE GM HAS MANAGED TO MAKE THE THIRD SHIFT SURPRISINGLY POPULAR THREE GM PLANTS IN NORTH AMERICA AND TWO IN EUROPE NOW OPERATE BETWEEN 20 AND 24 HOURS A DAY HELPING THE COMPANY TO HOLD DOWN PRODUCTION COSTS AND TO KEEP PRICES COMPETITIVE CONSIDER GM'S LORDSTOWN OHIO PLANT THAT ADDED A THIRD CREW 14 MONTHS AGO EACH CREW WORKS FOUR 10HOUR SHIFTS A WEEK SPREAD OUT OVER SEVEN DAYS THIS KEEPS THE PLANT RUNNING 20 HOURS MOST DAYS THE EXTRA PRODUCTION HAS ALLOWED GM TO HOLD THE LINE ON PRICES OF THE CHEVROLET CAVALIER AND PONTIAC SUNBIRD BUILT THERE WHILE PRICES ON OTHER MODELS HAVE RISEN AS A RESULT SALES OF THE TWO COMPACTS ARE UP ABOUT 24 THIS YEAR SO FAR IN NORTH AMERICA GM HAS ADDED THIRD CREWS OR THIRD SHIFTS ONLY IN PLANTS WHERE IT NEEDS TO BOOST PRODUCTION OF A PARTICULAR MODEL SUCH AS THE CAVALIER OR THE HOTSELLING SATURN COMPACT CAR BUT THAT COULD CHANGE GM PRESIDENT AND CHIEF EXECUTIVE JOHN F SMITH JR HAS ORDERED GM TO CHANGE ITS DESIGN PROCESS SO THAT SEVERAL MODELS CAN BE RUN USING THE SAME TOOLS IN EACH ASSEMBLY PLANT THIS TOGETHER WITH 24HOUR OPERATIONS COULD ENABLE GM TO CONSOLIDATE ITS NORTH AMERICAN PRODUCTION INTO 22 TO 24 PLANTS FROM THE 29 IT RUNS NOW THE DOWNSIDE TO THAT COULD MEAN TENS OF THOUSANDS OF ADDITIONAL LAYOFFS THE COMPANY WOULD BE VASTLY MORE EFFICIENT SAYS ANALYST JOHN CASESA OF WERTHEIM SCHRODER & CO IT WOULD BE ENORMOUSLY PROFITABLE OF COURSE GM WOULD PROBABLY RUN INTO FIERCE OPPOSITION IF IT ATTEMPTED SUCH A CONSOLIDATION STEPHEN YOKICH THE UAW'S TOP GM NEGOTIATOR SAYS THE UNION WON'T APPROVE ANY ALTERNATIVE WORK SCHEDULES THAT LEAD TO PLANT CLOSURES OR PITTING ONE PLANT AGAINST ANOTHER OSHAWA BEGAN PLANNING FOR A THIRD SHIFT IN MARCH FIVE MONTHS BEFORE ITS LAUNCH AMONG GM'S WORRIES WAS AVOIDING TRAFFIC JAMS OUTSIDE THE PLANT THAT IS BECAUSE THE 700 WORKERS FROM THE THIRD SHIFT WOULD BE LEAVING JUST AS SOME 3500 DAYSHIFT WORKERS WOULD BE ARRIVING FOR THE TRUCK PLANT AND TWO NEARBY CARASSEMBLY PLANTS BEFORE THERE HAD BEEN A 2HOUR BREAK BETWEEN THE FIRST AND SECOND SHIFTS THERE WAS SOME CONCERN IT WOULD BE SO BAD THEY WOULDN'T BE ABLE TO START A SHIFT RECALLS RD FRIZZELL THE TRUCK PLANT'S MANAGER BUT BY ARRANGING FOR TRAFFIC LIGHTS TO BE ADJUSTED GM HAS BEEN ABLE TO GET ITS WORKERS IN AND OUT OF THE PLANTS ON TIME GM DECIDED TO RUN THE ASSEMBLY LINE DURING THE THIRD SHIFT AT HALF THE SPEED OF THE FIRST TWO SHIFTS OR AT A RATE OF 29 UNITS AN HOUR THIS ALLOWS WORKERS TO PERFORM MUCH OF THE MAINTENANCE DURING THE THIRD SHIFT THAT USED TO BE DONE WHEN THE PLANT WAS IDLE BETWEEN SHIFTS THUS UNLIKE THE CHRYSLER PLANT IN ST LOUIS OSHAWA WAS ABLE TO ADD THE THIRD SHIFT WITHOUT SHORTENING THE FIRST OR SECOND SHIFTS THE IDEA WAS THAT THE THIRD SHIFT WAS PLUS VOLUME EXPLAINS MR FRIZZELL GM DIDN'T WANT TO LOSE VOLUME TO GET VOLUME HE SAYS OSHAWA'S MODULAR LAYOUT GIVES IT A BIG ADVANTAGE OVER MOST PLANTS ATTEMPTING ROUNDTHECLOCK WORK UNLIKE THE TYPICAL PLANT WHERE VEHICLES WIND THROUGH MOST OF THE PLANT ON A SINGLE CHAIN OR CONVEYOR SYSTEM MUCH OF THE ASSEMBLY WORK IN OSHAWA IS DONE IN MODULES WHERE THE CARS SIT FOR A FEW MINUTES BEFORE MOVING TO THE NEXT MODULE FOR EXAMPLE THE PLANT HAS SIX MODULES FOR INSTALLING WINDSHIELD WIPERS AND OTHER TRIM WHEN OSHAWA RUNS AT HALF SPEED ON THE THIRD SHIFT THE PLANT SIMPLY USES THREE OF THE MODULES AND LEAVES THE OTHER THREE IDLE THIS SLOWS PRODUCTION ENOUGH SO MAINTENANCE CAN BE DONE IN OTHER PARTS OF THE PLANT IT IS THE SAME IN THE PAINT SHOP WHICH IS THE BIGGEST PRODUCTION BOTTLENECK IN MOST CAR PLANTS EACH OF OSHAWA'S 10 PAINT BOOTHS NEEDS A TWOHOUR CLEANING EACH DAY BUT OSHAWA IS ABLE TO KEEP ITS PAINT SHOP OPERATING ON THE THIRD SHIFT BY CLEANING TWO OR THREE OF THE BOOTHS AT ANY ONE TIME AND KEEPING THE OTHER BOOTHS PAINTING DURING THE THIRD SHIFT A VISITOR CAN SEE AUTOMATED ROBOTS SPRAYING PAINT ON A TRUCK BODY IN ONE BOOTH WHILE TWO HUSKY WORKERS CLEAN THE NEIGHBORING BOOTH WITH HIGHPRESSURE SPRAY GUNS THE BODY SHOP WHERE EACH VEHICLE IS WELDED TOGETHER BY ROBOTS IS ANOTHER POTENTIAL BOTTLENECK BECAUSE THE MACHINES NEED FREQUENT MAINTENANCE BUT OSHAWA DEVISED A COMPLEX PLAN UNDER WHICH TEAMS OF WORKERS WORK FOR A WHILE IN ONE AREA BUILDING UP A STOCKPILE OF A PARTICULAR SUBASSEMBLY THEN MOVE OFF TO ANOTHER AREA TO BUILD A SUPPLY OF ANOTHER SUBASSEMBLY AS THEY VACATE EACH WORK AREA AT THE SOUND OF THE HORN MAINTENANCE CREWS GO IN BEHIND THEM TO PERFORM SUCH TASKS AS CHANGING THE WELD TIPS ON THE IDLE ROBOTS MAINTENANCE AND PRODUCTION TEAMS USE RADIOS TO COORDINATE THEIR MOVEMENTS WHICH ARE MAPPED OUT ON A HUGE COLORCODED DIAGRAM ON A WALL WITH LARGE SECTIONS OF THE PLANT OFTEN IDLE DURING THE THIRD SHIFT THE SILENCE CAN BE UNSETTLING I KEEP THINKING SOMETHING HAS BROKEN DOWN SAYS MR FRIZZELL ON A RECENT WALK THROUGH BUT SELDOM IS THAT SO MR FRIZZELL SAYS THE PLANT'S DOWNTIME DUE TO MAINTENANCE PROBLEMS HAS DECLINED SINCE GOING TO THREE SHIFTS THIS MIRRORS GM'S EXPERIENCE IN EUROPE WE'RE MORE RIGOROUS ABOUT PERFORMING MAINTENANCE AT 24HOUR PLANTS EXPLAINS DAN SALLEE VICE PRESIDENT OF MANUFACTURING FOR GM OF EUROPE AT OSHAWA THE WORKERS ARE AS ENTHUSIASTIC ABOUT THE THIRD SHIFT AS THE COMPANY THERE IS A WAITING LIST TO GET ON IT WORKERS WITH YOUNG CHILDREN LIKE THE SHIFT BECAUSE THEY CAN SPEND MORE TIME WITH THEIR FAMILIES THAN IF THEY WORKED THE FIRST TWO CYCLES THE THIRD SHIFT HAS THE ADDED ADVANTAGE OF OFFERING WORKERS REGULAR HOURS EVEN IF IT MEANS STARTING WORK AT 1130 PM OTHER WORKERS AT THE PLANT MUST SWITCH BETWEEN FIRST AND SECOND SHIFTS EVERY TWO WEEKS YOU DIDN'T SLEEP PROPERLY BEFORE SAYS THIRDSHIFT WORKER DENNIS MCDONALD WHO SPENT 15 YEARS ALTERNATING BETWEEN THE FIRST AND SECOND SHIFTS NOW I HAVE ALL DAY TO SLEEP WHAT'S MORE MR MCDONALD AND MANY OF THE OTHER THIRDSHIFT WORKERS PREVIOUSLY WORKED IN THE TWO NEARBY GM AUTO PLANTS AND ENDURED FREQUENT TEMPORARY LAYOFFS AT REDUCED PAY DUE TO THE WEAK DEMAND FOR THE PRODUCTS AT THE CAR PLANTS BY CONTRAST THE TRUCK PLANT VIRTUALLY NEVER HAS LAYOFFS I HAVE A HOUSE AND TWO KIDS AND I FIGURED I'D BE BETTER OFF WHERE THE WORK IS CONSISTENT SAYS STEVE FARYNA ANOTHER FORMER CARPLANT WORKER ONE OF THE BIGGEST ADVOCATES OF THE 24HOUR SCHEDULE HAS BEEN THE CANADIAN AUTO WORKERS UNION WHICH SEES IT AS A WAY TO CONSOLIDATE PRODUCTION IN CANADIAN PLANTS AND EMPLOY MORE CANADIANS WE THINK THIS WILL BE A PERMANENT PART OF THE LANDSCAPE SAYS CAW PRESIDENT BUZZ HARGROVE THE AMAZING THING TO ME IS WHY MANAGEMENT HASN'T DONE IT LONG BEFORE BUT USING OVERTIME HAS ITS ADVANTAGES RELYING ON OVERTIME GIVES A PLANT MORE FLEXIBILITY IF DEMAND FADES FOR THE VEHICLES IT BUILDS IN THAT CASE A PLANT SIMPLY ELIMINATES OVERTIME WHEREAS A THREESHIFT PLANT WOULD HAVE TO LAY OFF ONE OF THE SHIFTS MOREOVER A THIRD SHIFT REQUIRES COMPANIES TO PAY FULL SALARIES AND BENEFITS TO AN ADDITIONAL SET OF WORKERS FORD HAS RUN HEAVY OVERTIME TO INCREASE OUTPUT DESPITE COMPLAINTS FROM THE UAW THAT THIS WEARS OUT THE WORKERS SOME FORD PLANTS WILL SOMETIMES SQUEEZE UP TO 116 HOURS A WEEK INTO TWO SHIFTS USING DAILY AND SATURDAY OVERTIME WHEN YOU ADD A THIRD CREW OR THIRD SHIFT YOU INCUR A PRETTY SIGNIFICANT LIABILITY WITH ALL THE HEAD COUNT SAYS A FORD SPOKESMAN IF THE MARKET GOES FLAT WHAT DO YOU DO WITH ALL THESE PEOPLE GM HAS JUST THE OPPOSITE PROBLEM THOUGH BECAUSE OF PLANT CLOSINGS AND RECENT PRODUCTIVITY GAINS THE COMPANY HAS MNY IDLE WORKERS THAT IT MUST CONTINUE PAYMENTS TO UNDER UNION CONTRACTS THUS ADDING A THIRD SHIFT IS MUCH MORE ATTRACTIVE FOR GM THAN RUNNING OVERTIME IN OSHAWA GM WAS ABLE TO ADD THE THIRD SHIFT WITHOUT HIRING ANY EXTRA EMPLOYEES LARGELY BECAUSE OF THE CLOSING OF A GM VAN PLANT A FEW MILES AWAY ALTHOUGH OSHAWA'S THIRD SHIFT IS RUNNING AHEAD OF SCHEDULE TOWARD ITS GOAL OF PRODUCING 29 TRUCKS AN HOUR BY NOVEMBER THE PLANT'S MANAGER MR FRIZZELL ISN'T READY TO DECLARE VICTORY MOST PRODUCTION PROBLEMS OCCUR IN THE FINAL 20 OF A RAMP UP SAYS THE 25YEAR GM VETERAN THERE COULD STILL BE SOME POTHOLES BUT MR FRIZZELL IS PRESSING AHEAD WHEN MR SMITH GM'S PRESIDENT AND CHIEF EXECUTIVE VISITED THE PLANT IN AUGUST ONE OF HIS QUESTIONS WAS HOW THE FACTORY COULD RAISE ITS OUTPUT AFTER THE THIRD SHIFT REACHES 29 UNITS AN HOUR MR FRIZZELL AND HIS MANAGERS ARE STUDYING TWO OPTIONS USING MORE SATURDAY OVERTIME OR INCREASING THE LINE SPEED ON TH THIRD SHIFT MANAGING A 24HOUR PLANT BRINGS ITS OWN DEMANDS AFTER CONDUCTING TWO VISITORS ON A THREEHOUR TOUR THAT CONCLUDES AT 2 AM MR FRIZZELL IS SO CHARGED UP HE SPENDS ANOTHER 45 MINUTES PACING ABOUT THE PLANT TALKING TO WORKERS THEN HE DASHES HOME FOR THREE HOURS OF SLEEP BEFORE RETURNING FOR A 7 AM MEETING IT WAS A SHORT NIGHT HE SAYS 9310060045 931006 TECHNOLOGY MARION MERRELL ACQUIRES FIRM KANSAS CITY MO MARION MERRELL DOW INC SAID IT COMPLETED THE ACQUISITION OF RUGBYDARBY GROUP COS ONE OF THE NATION'S LARGEST GENERICDRUG CONCERNS TERMS WEREN'T DISCLOSED RUGBYDARBY ROCKVILLE CENTRE NY HAD 1992 SALES OF 280 MILLION MARION A MAJOR BRANDNAME DRUG COMPANY SAID THE ACQUISITION IS A STRATEGIC STEP THAT BUILDS UPON ITS RECOGNIZED LEADERSHIP IN MARKETING PHARMACEUTICALS TO THE GROWING US MANAGEDCARE MARKET 9310060044 931006 LANDSAT SATELLITE LAUNCH PLACES IT IN WRONG ORBIT VANDENBERG AIR FORCE BASE CALIF AP A 220 MILLION EARTH OBSERVATION SATELLITE WAS LAUNCHED INTO THE WRONG ORBIT YESTERDAY AND GROUND CONTROLLERS WERE UNABLE TO IMMEDIATELY MAKE CONTACT A MISSION SPOKESWOMAN SAID THE LANDSAT 6 SATELLITE WHICH RODE INTO SPACE ABOARD A TITAN IIG ROCKET WAS SUPPOSED TO GO INTO ORBIT OVER THE POLES DURING A FIVEYEAR 513 MILLION MISSION STUDYING THE EARTH'S ENVIRONMENT IT'S IN A DIFFERENT ORBIT THAN WE EXPECTED SAID CARLA ADAM A SPOKESWOMAN FOR EARTH OBSERVATION SATELLITE CO OR EOSAT SHE SAID THE PROBLEM WAS NOT OUT OF THE ORDINARY ADDING THAT EOSAT HOPED TO GET THE SATELLITE INTO THE PROPER ORBIT BY THE END OF THE WEEK EOSAT WAS TO OPERATE THE SATELLITE UNDER CONTRACT WITH THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION EOSAT IS A JOINT VENTURE OF MARTIN MARIETTA ASTRO SPACE A UNIT OF MARTIN MARIETTA CORP AND HUGHES AIRCRAFT CO A UNIT OF GENERAL MOTORS CORP THE SATELLITE WAS INTENDED TO PHOTOGRAPH BANDS ON EARTH ONCE EVERY 16 DAYS TO STUDY THE ENVIRONMENT 9310060043 931006 INTERNATIONAL BRIEF OBAYASHI CORP JAPANESE CONCERN WRITES OFF US REAL ESTATE INVESTMENTS OBAYASHI CORP A MAJOR JAPANESE CONSTRUCTION FIRM SAID IT PLANS TO WRITE OFF ABOUT 30 BILLION YEN 2837 MILLION IN THE CURRENT FISCAL YEAR TO LIQUIDATE REAL ESTATE INVESTMENTS IN THE US A SPOKESMAN FOR OBAYASHI SAID IT EXPECTS TO LIQUIDATE SOON ITS THREE WHOLLY OWNED SUBSIDIARIES OBAYASHI AMERICA CORP OC HOPE STREET INC AND OC SOUTHERN CALIFORNIA PROPERTIES INC THROUGH THE THREE FIRMS LOCATED IN LOS ANGELES OBAYASHI SPENT 47 BILLION YEN TO DEVELOP A HOTEL AN OFFICE BUILDING AND AN INDUSTRIAL PARK IN THE 1980S THE WRITEOFF MOVE CAME AS OBAYASHI REVISED DOWNWARD ITS NET INCOME ESTIMATE FOR THE CURRENT FISCAL YEAR ENDING MARCH 31 TO 13 BILLION YEN FROM ITS EARLIER ESTIMATE OF 23 BILLION YEN 9310060042 931006 INTERNATIONAL BRITISH AIRWAYS TRAFFIC CLIMBS LONDON BRITISH AIRWAYS PLC SAID ITS PASSENGER TRAFFIC WAS UP 14 IN SEPTEMBER TO 463 BILLION REVENUE PASSENGER MILES FROM 405 BILLION A YEAR EARLIER LOAD FACTOR THE PERCENTAGE OF AVAILABLE SEATS FILLED SLIPPED TO 749 FROM 750 TRAFFIC IN THE UNITED KINGDOM AND EUROPE GREW 21 IN SEPTEMBER OUTSTRIPPING THE 19 RISE IN CAPACITY THAT WAS RECORDED FOR THE REGION INTERNATIONAL FLIGHTS SHOWED THE REVERSE TREND AS CAPACITY EXPANDED SLIGHTLY FASTER THAN TRAFFIC 9310060041 931006 BUSINESS BRIEF DYNAMICS RESEARCH CORP FIRM POSTS 80 DROP IN NET FOR ITS FISCAL THIRD QUARTER DYNAMICS RESEARCH CORP HAMPERED BY DECLINING REVENUE POSTED AN 80 DROP IN FISCAL THIRDQUARTER NET INCOME FOR THE PERIOD ENDED SEPT 4 THE WILMINGTON MASS COMPANY WHICH MAKES MEASUREMENT AND CONTROL DEVICES AND PROVIDES TECHNICAL SERVICES POSTED NET OF 189000 OR FOUR CENTS A SHARE COMPARED WITH NET INCOME OF 950000 OR 18 CENTS A SHARE IN THE YEAREARLIER QUARTER REVENUE FOR THE LATEST PERIOD WAS 219 MILLION DOWN 77 FROM REVENUE OF 237 MILLION IN THE YEAREARLIER QUARTER THE DECREASE IN REVENUE WAS PRINCIPALLY DUE TO ONE LARGE TECHNICALSERVICES CONTRACT THAT WAS NARROWED OVER THE SUMMER BUT WILL BE RESTORED NEXT YEAR THE COMPANY SAID THE LOWER NET INCOME DURING THE QUARTER A SPOKESMAN SAID STEMMED FROM INCREASED DEVELOPMENT EXPENSES FROM THE UPGRADING OF SYSTEMS AND EQUIPMENT FOR DEFENSE DEPARTMENT CONTRACTS FOR THE NINE MONTHS NET INCOME WAS 14 MILLION OR 28 CENTS A SHARE DOWN 36 FROM NET INCOME OF 22 MILLION OR 42 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE FOR THE NINE MONTHS WAS 693 MILLION UP SLIGHTLY FROM 691 MILLION IN THE 1992 PERIOD 9310060040 931006 BUSINESS BRIEF AMOCO CORP BRITISH PETROLEUM AMERICA SELLS EGYPTIAN UNIT TO FIRM AMOCO CORP CHICAGO PURCHASED BRITISH PETROLEUM AMERICA'S EGYPTIAN EXPLORATION UNIT FOR AN UNDISCLOSED SUM BRITISH PETROLEUM AMERICA IS A UNIT OF BRITISH PETROLEUM CO THE UNIT BP NORTH AMERICA EXPLORATION EGYPT INC OWNS A 25 WORKING INTEREST IN THE NILE DELTA CONCESSION 100 MILES NORTH OF CAIRO THE ACQUISITION INCLUDES AN INTEREST IN THE EL QAR'A GAS CONDENSATE RESERVOIRS OTHER DEVELOPMENT LEASES AND AN INTEREST IN A LIQUID PETROLEUM GAS PROCESSING PLANT THE CONCESSION IS OPERATED BY A UNIT OF AGIP SPA AVERAGE GROSS DAILY PRODUCTION FROM EL QAR'A IS ABOUT 140 MILLION CUBIC FEET OF NATURAL GAS AND ABOUT 4000 BARRELS OF CONDENSATE AND LIQUID PETROLEUM GAS 9310060039 931006 MAC FRUGAL'S SELLS A WAREHOUSE DOMINGUEZ CALIF MAC FRUGAL'S BARGAINSCLOSEOUTS SAID IT SOLD A 12 MILLIONSQUAREFOOT DISTRIBUTION CENTER IN NEW ORLEANS TO TRINET CORPORATE REALTY TRUST INC FOR 235 MILLION THE REAL ESTATE INVESTMENT TRUST BASED IN SAN FRANCISCO WILL LEASE BACK THE FACILITY TO MAC FRUGAL'S PROCEEDS FROM THE CENTER ONE OF TWO OPERATED BY MAC FRUGAL'S PARTLY WILL BE USED TO PAY DOWN DEBT THE COMPANY SAID MAC FRUGAL'S WHICH OPERATES A CHAIN OF 222 RETAIL STORES SPECIALIZING IN NEW CLOSEOUT MERCHANDISE SAID IT PLANS TO ADD 36 NEW STORES A YEAR 9310060038 931006 NATIONAL MEDICAL SUED BY EXECUTIVE WHO WAS DISMISSED BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL SANTA MONICA CALIF A TOP EXECUTIVE WHO RECENTLY WAS REMOVED BY NATIONAL MEDICAL ENTERPRISES INC FILED A 35 MILLION LAWSUIT CHARGING THE HOSPITAL CHAIN WITH EXTREME AND OUTRAGEOUS CONDUCT THAT BREACHED HIS EMPLOYMENT CONTRACT JOHN C BEDROSIAN A COMPANY COFOUNDER CLAIMED HIS DISMISSAL FROM THE POST OF SENIOR EXECUTIVE VICE PRESIDENT WAS WITHOUT CAUSE AND DESPITE NUMEROUS WRITTEN AND ORAL ASSURANCES THAT HIS EMPLOYMENT WOULD CONTINUE UNTIL HE TURNED 65 MR BEDROSIAN IS 58 YEARS OLD RESPONDING TO THE SUIT NATIONAL MEDICAL SAID IT IS CONFIDENT IT HAS COMPLIED WITH MR BEDROSIAN'S EMPLOYMENT AGREEMENT AND WILL STRENUOUSLY DEFEND AGAINST THIS ACTION THE COMPANY HAS REFUSED TO DISCUSS THE REASONS FOR ITS ACTIONS AGAINST MR BEDROSIAN ORDERED TWO WEEKS AGO BY THE BOARD'S EXECUTIVE COMMITTEE MR BEDROSIAN SAYS IN THE SUIT FILED IN STATE COURT HERE THAT HE WAS TOLD HE MUST LEAVE BECAUSE HE WAS A MEMBER OF THE OLD GUARD FILED WITH THE SUIT IS A LETTER TO THE COMPANY FROM MR BEDROSIAN'S LAWYER RICHARD E HODGE SAYING THAT IT IS INDISPUTABLE THAT MR BEDROSIAN HAS SUFFERED ALL THIS WRONGFUL CONDUCT SOLELY BECAUSE HE LAY IN THE SWEEP OF THE COMPANY'S PURGE OF ITS FOUNDERS COFOUNDERS RICHARD K EAMER AND LEONARD COHEN WERE FORCED TO RESIGN SEVERAL MONTHS AGO THE LAWSUIT ALSO DISCUSSES 37 MILLION IN COMPANY LOANS TO MR BEDROSIAN AND GIVES DETAILS OF THE LUCRATIVE COMPENSATION PACKAGE AND RETIREMENT BENEFITS HE IS FIGHTING TO KEEP MR BEDROSIAN ALSO CLAIMS HIS FIRING VIOLATED BYLAWS REQUIRING APPROVAL OF THE FULL BOARD OF DIRECTORS MR BEDROSIAN CLAIMS IN THE SUIT THAT HIS CONTINUED EMPLOYMENT WITH NATIONAL MEDICAL IS A CONDITION PRECEDENT TO HIS OBLIGATION TO REPAY 37 MILLION IN COMPANY LOANS THE EXECUTIVE SAYS THE FUNDS WERE USED TO EXERCISE COMPANY STOCK OPTIONS AND TO PAY PERSONAL INCOME TAXES MR BEDROSIAN CLAIMS HE PLANNED TO SELL COMPANY STOCK TO PAY SOME OF HIS TAXES BUT WAS INDUCED BY THE COMPANY TO BORROW THE MONEY INSTEAD TO AVOID ANY POSSIBLE ADVERSE MARKET CONSEQUENCES OF AN NME EXECUTIVE SELLING RELATIVELY LARGE BLOCKS OF STOCK OF HIS OWN COMPANY NATIONAL MEDICAL SAYS WE FULLY EXPECT THOSE LOANS TO BE REPAID BY MR BEDROSIAN THE EXECUTIVE'S COMPENSATION PACKAGE INCLUDES 510000 IN ANNUAL SALARY AND A NUMBER OF OTHER INCENTIVE PROGRAMS HIS RETIREMENT BENEFITS INCLUDE THE USE OF AN AUTOMOBILE FOR THE REST OF HIS LIFE FULL REIMBURSEMENT AFTER ANY MEDICARE PAYMENTS OF ALL MEDICAL COSTS FOR HIMSELF AND HIS WIFE AND USE OF CORPORATE JETS FOR PERSONAL TRAVEL MESSRS EAMER AND COHEN HAD IDENTICAL LANGUAGE IN THEIR EMPLOYMENT AGREEMENTS WHICH WERE SUPERSEDED BY RECENT SEVERANCE AND CONSULTING PACTS NATIONAL MEDICAL SAID THE NEW AGREEMENTS MODIFIED THEIR RETIREMENT BENEFITS TO EXCLUDE USE OF A COMPANY PLANE AND TO LIMIT USE OF A COMPANY CAR TO THE TERMS OF THEIR RESPECTIVE CONSULTING DEALS IN TRADING ON THE NEW YORK STOCK EXCHANGE NATIONAL MEDICAL WAS UNCHANGED AT 10125 9310060037 931006 BUSINESS BRIEF NATIONAL GYPSUM CO WALLBOARD MAKER TO LAY OFF ABOUT 360 BY YEAR'S END NATIONAL GYPSUM CO SAID IT WILL LAY OFF ABOUT 360 OF ITS 3000 EMPLOYEES BY YEAR'S END AS PART OF A CONTINUING CONSOLIDATION IN WHICH 900 HOURLY AND SALARIED JOBS HAVE BEEN ELIMINATED SINCE 1990 THE WALLBOARD MANUFACTURER WHICH EMERGED FROM CHAPTER 11 BANKRUPTCYCOURT PROTECTION JULY 1 AS A NEWLY FORMED COMPANY SAID THAT SEVERANCE PAY TO EMPLOYEES WILL RESULT IN A ONETIME CHARGE TO EARNINGS OF 45 MILLION THE CHARGE WILL BE APPLIED TO THE THIRD QUARTER LONGER TERM THE COMPANY SAID IT EXPECTS THE WORKFORCE REDUCTIONS TO PRODUCE 30 MILLION OF ANNUAL PRETAX SAVINGS NATIONAL GYPSUM LAST MONTH REPORTED THAT ITS CHAIRMAN AND CHIEF EXECUTIVE PETER C BROWNING RESIGNED EFFECTIVE OCT 31 THE COMPANY SAID IT IS SEARCHING FOR A REPLACEMENT A SPOKESMAN FOR NATIONAL GYPSUM WHICH OPERATES ABOUT 25 MANUFACTURING PLANTS THROUGHOUT THE COUNTRY SAID MOST LAYOFFS WOULD BE ANNOUNCED BY THE END OF OCTOBER 9310060036 931006 LUKENS TO INSTALL EQUIPMENT COATESVILLE PA LUKENS INC SAID ITS BOARD APPROVED SPENDING 145 MILLION TO INSTALL STAINLESSSTEELREFINING EQUIPMENT AT THE LUKENS STEEL MELTING FACILITIES HERE THE COMPANY WITH SUBSIDIARIES PRODUCING A WIDE RANGE OF COATED STEEL PRODUCTS AND SERVICES SAID IT WILL COMPLETE THE PROJECT BY THE FIRST QUARTER OF 1995 THE NEW REFINING EQUIPMENT WILL PRODUCE 9BY85INCH SLABS ENABLING THE COMPANY TO SUPPLY STAINLESS PLATE SLABS AND SHEET TO THE STAINLESSSTEEL MARKET 9310060035 931006 BUSINESS BRIEF UNITED MERCHANTS & MANUFACTURERS AUDITORS INDICATE DOUBT' ABOUT FUTURE OF COMPANY UNITED MERCHANTS & MANUFACTURERS INC SAID CONTINUED LOSSES ALONG WITH A HEAVY DEBT LOAD CAUSED ITS AUDITORS TO DECLARE CONSIDERABLE DOUBT ABOUT THE COMPANY'S ABILITY TO CONTINUE AS A GOING CONCERN IN FISCAL 1993 ENDED JUNE 30 THE TEXTILE CONCERN REPORTED A LOSS OF 252 MILLION OR 167 A SHARE COMPARED WITH A FISCAL 1992 LOSS OF 33 MILLION OR 223 A SHARE THE TEANECK NJ COMPANY ADDED THAT ITS CONTINUED EXISTENCE IS DEPENDENT UPON AMONG OTHER THINGS ITS ABILITY TO GENERATE POSITIVE CASH FLOWS FROM ITS OPERATIONS AND THE RESTRUCTURING OF ITS DEBT AT JUNE 30 THE COMPANY'S BALANCE SHEET INCLUDED CURRENT ASSETS OF 642 MILLION AND CURRENT LIABILITIES OF 1289 MILLION 9310060034 931006 ALEXANDER ENERGY TESTS WELL OKLAHOMA CITY ALEXANDER ENERGY CORP SAID IT COMPLETED A HORIZONTAL WELL IN THE AUSTIN CHALK AREA LOCATED IN FAYETTE COUNTY TEXAS WITH A DAILY PRODUCTION THAT TESTED 2414 BARRELS OF OIL AND 29 MILLION CUBIC FEET OF NATURAL GAS BASED ON THE TEST RESULTS PRODUCTION FROM THE WELL WOULD ADD ABOUT 55 TO THE COMPANY'S CURRENT PRODUCTION VOLUMES ALEXANDER OWNS A 70 INTEREST IN THE WELL AND THE REST BELONGS TO JOHN HANCOCK MUTUAL LIFE INSURANCE CO OF BOSTON 9310060033 931006 BUSINESS BRIEF LANDS' END INC CHAIRMAN OFFICIAL TO SELL 13 MILLION SHARES OF FIRM LANDS' END INC SAID ITS CHAIRMAN AND VICE CHAIRMAN PLAN TO SELL NEARLY 13 MILLION SHARES OR ABOUT A 7 STAKE IN THE CATALOG RETAILER THE DODGEVILLE WIS COMPANY SAID FOUNDER AND CHAIRMAN GARY C COMER WHO CURRENTLY HOLDS 104 MILLION SHARES WILL SELL 1130500 OF HIS LANDS' END SHARES IN THE PUBLIC OFFERING A MOVE THAT WILL REDUCE HIS HOLDING TO 517 FROM 58 IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY LANDS' END SHARES SLIPPED 50 CENTS TO 40375 THE STOCK HAS STRENGTHENED CONSIDERABLY IN RECENT MONTHS IT TRADED BELOW 25 A SHARE AS RECENTLY AS MARCH AT YESTERDAY'S PRICE MR COMER WOULD REAP 456 MILLION FROM THE PLANNED STOCK SALE ALSO SELLING IS VICE CHAIRMAN RICHARD C ANDERSON WHO CURRENTLY HOLDS 792005 LANDS' END SHARES OR A 44 STAKE AND WILL RETAIN A 37 POSITION AFTER THE PLANNED SALE OF 130500 SHARES THE COMPANY DIDN'T DISCLOSE WHY THE OFFICIALS PLAN TO REDUCE THEIR HOLDINGS THE OFFERING IS EXPECTED TO OCCUR LATE THIS MONTH 9310060032 931006 OLD AMERICA STORES' SALES HOWE TEXAS OLD AMERICA STORES INC SAID SEPTEMBER SALES INCREASED 155 TO 71 MILLION FROM 61 MILLION A YEAR AGO SALES AT STORES OPEN MORE THAN A YEAR INCREASED 18 DURING THE PERIOD THE SPECIALTY RETAILER SAID YEARTODATE SALES INCREASED 169 TO 546 MILLION FROM 467 MILLION A YEAR AGO YEARTODATE SAME STORES SALES WERE UP 17 9310060031 931006 ERNST & YOUNG'S IRISH AFFILIATE TO SETTLE SUIT OVER FAILED INSURER FOR 110 MILLION BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON MAKING ONE OF THE LARGEST SETTLEMENTS EVER OF AN ACCOUNTING LAWSUIT AN IRISH BRANCH OF ERNST & YOUNG AGREED TO PAY 110 MILLION TO SETTLE CHARGES THAT IT WAS NEGLIGENT IN AUDITING A BIG IRISH INSURANCE COMPANY THAT COLLAPSED IN 1985 THE SETTLEMENT BY THE IRISH PARTNERS OF ERNST & WHINNEY NOW A MEMBER FIRM OF ERNST & YOUNG INTERNATIONAL STEMS FROM WHAT WAS ONE OF IRELAND'S BIGGEST FINANCIAL SCANDALS IN THE MID1980S ERNST & WHINNEY'S CLIENT INSURANCE CORP OF IRELAND COLLAPSED IN 1985 AFTER RACKING UP HUGE UNDERWRITING LOSSES TO SAFEGUARD POLICYHOLDERS THE IRISH GOVERNMENT BAILED OUT THE COMPANY SHORTLY AFTERWARD THE ERNST & WHINNEY IRISH PARTNERSHIP WAS CHARGED WITH NEGLIGENCE BY THE INSURER'S GOVERNMENTAPPOINTED ADMINISTRATORS AND BY ITS FORMER PARENT ALLIED IRISH BANKS PLC NEWS OF THE SETTLEMENT CAME JUST AS THE TRIAL WAS SCHEDULED TO BEGIN YESTERDAY MORNING IN DUBLIN AFTER EIGHT YEARS OF PRETRIAL MANEUVERING AND INVESTIGATION THAT INVOLVED 25 MILLION DOCUMENTS IN A STATEMENT THE IRISH ACCOUNTANTS SAID THEIR SETTLEMENT WAS WITHOUT ADMISSION OF ANY LIABILITY AND WAS INTENDED TO AVOID COMPLEX EXPENSIVE AND TIMECONSUMING IRISH COURT HEARINGS THAT MIGHT HAVE GONE ON FOR YEARS LAWYERS INVOLVED IN THE CASE CALLED THE SETTLEMENT ONE OF THE LARGEST EVER REACHED AGAINST AUDITORS AND THE LAST IN A STRING OF EMBARRASSING COSTLY SETTLEMENTS BY SEVERAL OF THE WORLD'S BIGGEST ACCOUNTING FIRMS LAST NOVEMBER AS PART OF THE US GOVERNMENT'S CLEANUP OF MORE THAN 700 FAILED SAVINGS & LOAN INSTITUTIONS ERNST & YOUNG'S US PARTNERS AGREED TO A 400 MILLION SETTLEMENT OF FEDERAL CHARGES THAT THEY INADEQUATELY AUDITED FOUR LARGE S&LS AND ARTHUR ANDERSEN & CO IN ITS OWN PIECE OF THE NATIONAL S&L DEBACLE HAS PAID MORE THAN 65 MILLION TO SETTLE GOVERNMENT CHARGES OVER ITS AUDITS OF A FAILED THRIFT OUTSIDE THE LITIGIOUS US THOUGH LARGE ACCOUNTING SETTLEMENTS HAVE BEEN LESS FREQUENT THE FULL DAMAGE CLAIM IN THE IRISH CASE WAS FOR BETWEEN 550 MILLION IRISH POUNDS 7939 MILLION AND ONE BILLION IRISH POUNDS DEPENDING ON WHETHER INTEREST THAT MIGHT HAVE ACCRUED ON THE ORIGINAL DAMAGES DURING THE EIGHT YEARS OF LEGAL WRANGLING WAS TAKEN INTO ACCOUNT THE 110 MILLION SETTLEMENT TO BE PAID IN DOLLARS IS FULLY COVERED BY THE FIRM'S MALPRACTICE INSURANCE SO NONE OF ERNST & YOUNG'S 39 IRISH PARTNERS WILL ACTUALLY HAVE TO PAY OUT OF THEIR OWN POCKETS A SPOKESWOMAN SAID NEVERTHELESS THE INCIDENT COULD PUSH UP MALPRACTICE INSURANCE PREMIUMS AND IS A BLOW TO THE FIRM'S PRESTIGE THE IRISH PARTNERSHIP HAS 502 EMPLOYEES AND RANKS AS ONE OF THE TOP FIVE ACCOUNTING FIRMS IN IRELAND THE SETTLEMENT MONEY IS TO BE SPLIT EVENLY BETWEEN ALLIED IRISH BANKS AND A GOVERNMENT COMPANY ADMINISTERING WHAT'S LEFT OF INSURANCE CORP AIB SAID THE COLLAPSE OF INSURANCE CORP WHICH AT THE TIME WAS THE SIXTHBIGGEST COMPANY LISTED ON THE DUBLIN STOCK EXCHANGE BOILED DOWN TO BAD BUSINESS JUDGMENT IN ITS UNDERWRITING COMPOUNDED BY FAILURE TO SET ASIDE LARGE ENOUGH PROVISIONS TO COVER BIG INSURANCE CLAIMS THE CHARGES AGAINST ERNST & WHINNEY'S IRISH PARTNERSHIP ALLEGED THAT IT HAD BEEN NEGLIGENT IN CERTIFYING THE COMPANY'S ACCOUNTS AND ITS PROVISIONS FOR FUTURE INSURANCEPOLICY LOSSES IN ANNUAL REPORTS AN AIB SPOKESMAN SAID UNDERCOURT PROCEDURES HE SAID FULL DETAILS OF THE CHARGES WERE NEVER MADE PUBLIC AND THE SETTLEMENT PRECLUDES THEIR DISCLOSURE NOW 9310060030 931006 TECHNOLOGY BRIEF CIBAGEIGY CORP PHARMACEUTICALS UNIT SEES SHORTAGES OF RITALIN AHEAD CIBAGEIGY CORP'S PHARMACEUTICALS DIVISION SAID PHARMACIES NATIONWIDE WILL SOON BE EXPERIENCING SHORTAGES OF RITALIN A MILD CENTRAL NERVOUS SYSTEM STIMULANT THE DRUG METHYLPHENIDATE HYDROCHLORIDE IS USED TO TREAT ATTENTIONDEFICIT HYPERACTIVITY DISORDER AND NARCOLEPSY THE DRUG IS SUBJECT TO ANNUAL FEDERAL PRODUCTION QUOTAS CIBA PHARMACEUTICALS SUMMIT NJ SAID IT IS WORKING CLOSELY WITH THE DRUG ENFORCEMENT AGENCY TO NEGOTIATE A PRODUCTION INCREASE AND WILL BEGIN ROUNDTHECLOCK PRODUCTION ONCE A DECISION IS MADE CIBA SAID HISTORICALLY SUPPLIES OF THE DRUG HAVE DIMINISHED TOWARD THE END OF THE YEAR AS PRODUCTION QUOTAS ARE EXHAUSTED BY MANUFACTURERS THE GOVERNMENT'S DECISION ON AN INCREASE IN THE QUOTA HAS BEEN DELAYED THIS YEAR CIBA SAID 9310060029 931006 INTERNATIONAL THYSSEN TO POST LOSS FOR YEAR PARIS GERMAN STEEL AND ENGINEERING GROUP THYSSEN AG WILL POST A GROUP LOSS FOR THE FISCAL YEAR ENDED SEPT 30 CHAIRMAN HEINZ KRIWET SAID AT A MEETING OF THE INTERNATIONAL IRON AND STEEL INSTITUTE MR KRIWET WASN'T MORE SPECIFIC A FULLYEAR LOSS FOR THE GROUP COMES AS LITTLE SURPRISE AFTER THYSSEN POSTED A PRETAX LOSS OF 515 MILLION MARKS 3172 MILLION FOR ITS FIRST HALF ENDED MARCH 31 IN MAY THE COMPANY SAID THAT IT EXPECTED THE ECONOMIC CLIMATE TO REMAIN UNFAVORABLE BUT THAT IT ALSO FORESAW A NOTICEABLE IMPROVEMENT IN ITS SECONDHALF RESULTS 9310060028 931006 BUSINESS BRIEF COMINCO LTD MINING CONCERN WILL SELL A STAKE IN FERTILIZER UNIT COMINCO LTD SAID IT AGREED TO SELL ABOUT HALF ITS STAKE IN SUBSIDIARY COMINCO FERTILIZERS LTD TO A GROUP OF INSTITUTIONAL INVESTORS FOR TOTAL PROCEEDS OF 883 MILLION CANADIAN DOLLARS US658 MILLION COMINCO A MINING CONCERN IN VANCOUVER BRITISH COLUMBIA SAID THE SALE WILL REDUCE ITS STAKE IN COMINCO FERTILIZERS TO 22 FROM 498 PROCEEDS OF THE SALE WILL BE USED TO REPAY DEBT COMINCO INITIALLY OFFERED SHARES IN ITS FERTILIZER BUSINESS TO THE PUBLIC EARLIER THIS YEAR COMINCO SAID THE LATEST TRANSACTION WILL BE CARRIED OUT THROUGH THE SALE OF COMINCO WARRANTS EXCHANGEABLE FOR COMMON SHARES OF COMINCO FERTILIZERS COMINCO SAID IT WILL SELL FIVE MILLION WARRANTS AT C1765 EACH NESBITT THOMSON INC AND GORDON CAPITAL CORP ARE SERVING AS AGENTS TO THE ISSUE 9310060027 931006 TECHNOLOGY BRIEF CHIRON CORP UK RULING IN PATENT CASE REPRESENTS PARTIAL VICTORY CHIRON CORP EMERYVILLE CALIF WON A PARTIAL LEGAL VICTORY IN UK LAWSUITS INVOLVING A PATENT ON PRODUCTS THAT DETECT THE HEPATITIS C VIRUS CHIRON AND A BUSINESS PARTNER ORTHO DIAGNOSTIC SYSTEMS INC SUED ORGANON TEKNIKA LTD AND MUREX DIAGNOSTICS LTD FOR INFRINGING CHIRON'S BRITISH PATENT ON HEPATITIS C TESTS THE HIGH COURT OF JUSTICE FOR ENGLAND AND WALES UPHELD THE PATENT'S VALIDITY AND RULED THAT ORGANON AND MUREX INFRINGED CERTAIN CLAIMS BUT THE COURT SIDED WITH THE DEFENDANTS' CONTENTION THAT TERMS OF CHIRON'S PARTNERSHIP WITH ORTHO VIOLATE ANOTHER UK LAW RESTRICTING MONOPOLISTIC PATENT AGREEMENTS AS A RESULT MUREX AND ORGANON CAN CONTINUE TO SELL THEIR PRODUCTS UNLESS CHIRON AND ORTHO MODIFY THEIR PACT CHIRON IS STUDYING WHETHER TO MODIFY THE PACT A SPOKESMAN SAID INTERNATIONAL MUREX CORP MUREX'S PARENT SAID IT WOULD APPEAL THE RULING CHIRON ROSE 75 CENTS TO 7825 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY 9310060026 931006 MET LIFE PROBED IN SEVERAL STATES FOR SALES TACTICS AGENTS MAY HAVE MISLED CONSUMERS ON POLICIES INSURER OFFERS REFUNDS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL METROPOLITAN LIFE INSURANCE CO IS BEING INVESTIGATED IN SEVERAL STATES FOR USING QUESTIONABLE TACTICS TO SELL THOUSANDS OF LIFEINSURANCE POLICIES ACROSS THE COUNTRY THE INVESTIGATION WHICH WAS INITIATED IN FLORIDA CENTERS ON WHETHER MET LIFE AGENTS MISLED CUSTOMERS INTO THINKING THEY WERE INVESTING IN HIGHINTEREST RETIREMENT ACCOUNTS WHEN IN FACT THEY WERE BUYING LIFE INSURANCE CONSUMERS ALLEGEDLY WERE LED TO BELIEVE THAT THEIR MONEY WAS EARNING INTEREST FROM THE MOMENT OF THE FIRST PREMIUM PAYMENT AND THAT THE MONEY COULD BE WITHDRAWN AT ANY TIME BUT WITH A TYPICAL LIFEINSURANCE POLICY THE FIRST YEAR OR TWO OF PAYMENTS GO LARGELY TO COMMISSIONS AND OTHER ADMINISTRATIVE EXPENSES THE INVESTIGATION SO FAR HAS BEEN CONCENTRATED ON MET LIFE'S OFFICE IN TAMPA FLA NEW YORKBASED MET LIFE WHICH IS THE NATION'S SECONDLARGEST LIFE INSURER ACKNOWLEDGES THAT SOME POLICYHOLDERS MAY HAVE BEEN MISLED THE COMPANY RECENTLY VOLUNTEERED TO REFUND PREMIUMS TO THE 18000 POLICYHOLDERS AROUND THE COUNTRY WHO BOUGHT INSURANCE FROM THE TAMPA OFFICE THE PRACTICE OF MISREPRESENTING LIFE INSURANCE AS PURELY A SAVINGS VEHICLE IS WIDESPREAD INSURANCE EXPERTS SAY BUT SELDOM IS THE PRACTICE ATTACKED WITH AS MUCH VIGOR AS THE CURRENT DISPUTE INVOLVING MET LIFE IT GOES ON ALL THE TIME SAID JOE BELTH PROFESSOR EMERITUS OF INSURANCE AT INDIANA UNIVERSITY BUT IT'S RARE THAT ANYBODY DOES ANYTHING ABOUT IT FLORIDA HAS NOTIFIED OTHER STATES ABOUT MET LIFE'S ACTIONS AND OFFICIALS IN PENNSYLVANIA HAVE BEGUN THEIR OWN PROBE NORTH CAROLINA OFFICIALS SAY THEY HAVE RECEIVED EVIDENCE THAT SUGGESTS SIMILAR MISLEADING SALES TACTICS WERE USED IN MET LIFE'S HIGH POINT OFFICE TEXAS ALSO RECEIVED COMPLAINTS FROM CONSUMERS BUT HAS NOT BEGUN AN INVESTIGATION FLORIDA IS PARTICULARLY CONCERNED ABOUT MET LIFE BECAUSE TOP COMPANY OFFICIALS KNEW ABOUT THE QUESTIONABLE PRACTICES MET AUDITORS SPOTTED THE PRACTICES IN 1991 AND ORDERED THAT THE TAMPA OFFICE ALTER ITS SALES METHODS IN ADDITION AN AGENT IN TAMPA NOTIFIED MET CHAIRMAN HARRY KAMEN ABOUT THE PRACTICES LAST FEBRUARY THE COMPANY SAID MR KAMEN RECEIVED THE LETTER AND HIS SECRETARY PASSED IT ON TO THE SOUTHEAST REGIONAL OFFICE BUT DESPITE THE NOTIFICATIONS MET LIFE ACKNOWLEDGED THAT SOME OF THE PRACTICES CONTINUED AS LATE AS LAST WEEK THE COMPANY SAID THE PRACTICES HAVE NOW BEEN HALTED INSURANCE EXPERTS EXPECT THAT MET LIFE WILL ULTIMATELY SUFFER NOTHING MORE THAN A HEAVY FINE AND PUBLIC EMBARRASSMENT AS A RESULT OF THE CONTROVERSY BUT AN ADMINISTRATIVE ORDER ISSUED BY FLORIDA INSURANCE COMMISSIONER TOM GALLAGHER SAYS ANOTHER POSSIBLE OUTCOME IS THE REVOCATION OF MET LIFE'S LICENSE IN THAT STATE FLORIDA OFFICIALS INSIST THEY ARE NOT MAKING IDLE THREATS ABOUT PUTTING MET OUT OF BUSINESS IN THE STATE WHICH GENERATES ABOUT 2 OF MET'S TOTAL PREMIUMS IF THE COMMISSIONER DETERMINED IT WAS APPROPRIATE HE WOULD DO IT SAID A SPOKESMAN FOR THE STATE MET LIFE SO FAR HAS NOT RESPONDED TO THE ADMINISTRATIVE ORDER BUT HAS REQUESTED A HEARING WITH STATE OFFICIALS MET LIFE HAS ALREADY RECEIVED CALLS TO A SPECIAL TOLLFREE NUMBER FROM MORE THAN A THOUSAND POLICYHOLDERS INQUIRING ABOUT REFUNDS THE COMPANY ALSO HAS HIRED TWO FLORIDA LAW FIRMS TO CONDUCT ITS OWN INVESTIGATION INTO THE MATTER NO CUSTOMER IS GOING TO BE HURT SAID TED ATHANASSIADES PRESIDENT AND CHIEF OPERATING OFFICER FOR MET WE HAVE CONTROL PROCESSES ALL OVER THE PLACE TO GUARD AGAINST THESE THINGS BUT OBVIOUSLY SOMETHING WENT WRONG ALTHOUGH THE TAMPA OFFICE GENERATES ONLY A SMALL PORTION OF MET'S REVENUE IT IS THE LARGEST OFFICE IN TERMS OF COMMISSIONS ACCORDING TO THE FLORIDA ADMINISTRATIVE ORDER RICK URSO WHO MANAGED THE OFFICE MISREPRESENTED MET'S LIFEINSURANCE POLICIES AS BEING A SAVINGS VEHICLE HIS OFFICE SPECIALIZED IN MARKETING LIFE INSURANCE TO NURSES SELLING POLICIES THROUGHOUT THE COUNTRY AGENTS IN THAT OFFICE WERE INSTRUCTED TO CALL THEMSELVES NURSING SPECIALISTS AND USE THE WORD DEPOSIT INSTEAD OF PREMIUM TO DESCRIBE PAYMENTS MR URSO WHO IS STILL EMPLOYED BY MET LIFE DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT THE STATE SUGGESTS MET LIFE TOLERATED MR URSO'S PRACTICES BECAUSE HE WAS ONE OF THE COMPANY'S TOP PRODUCERS OBVIOUSLY METROPOLITAN WAS UNCONCERNED AS TO THE MANNER IN WHICH THESE RESULTS WERE ACHIEVED ACCORDING TO THE FLORIDA ADMINISTRATIVE ORDER THAT'S AN ABSURD STATEMENT SAID MR ATHANASSIADES HE CONTENDED THAT MET LIFE IS A LEADER IN SELLING PENSION PRODUCTS SUCH AS ANNUITIES TO THE NURSING PROFESSION AND WOULD BE FOOLISH TO ENDANGER THAT BUSINESS 9310060025 931006 MARKETING BRIEF INFINITY BROADCASTING CORP COMPANY TO PAY 60 MILLION FOR WASHINGTON STATIONS INFINITY BROADCASTING CORP NEW YORK SAID IT HAS AGREED TO BUY RADIO STATIONS WPGCAM/FM IN WASHINGTON DC FROM COOK INLET RADIO PARTNERS FOR ABOUT 60 MILLION THE PURCHASE WHICH WILL BE FUNDED BY BANK BORROWINGS EXPANDS INFINITY'S PRESENCE IN THE WASHINGTON AREA WHERE THE COMPANY ALREADY OWNS WJFKFM UPON COMPLETION OF THIS AND OTHER PENDING PURCHASES WHICH ARE SUBJECT TO CERTAIN REGULATORY APPROVALS INFINITY WILL OWN 25 RADIO STATIONS IN 13 MAJOR MARKETS COOK INLET'S OWNERS INCLUDE COOK INLET REGION INC AN ANCHORAGE ALASKA ENTERPRISE OWNED BY 6500 ESKIMOS 9310060023 931006 BUSINESS BRIEF CENTURY 21 REAL ESTATE CORP RESALES IN SEPTEMBER ROSE 14 TO 15 FROM YEAR AGO CENTURY 21 REAL ESTATE CORP'S SALES OF PREVIOUSLY OWNED HOMES IN SEPTEMBER ROSE 14 TO 15 FROM A YEAR EARLIER RICHARD J LOUGHLIN PRESIDENT SAID THE PERFORMANCE BY CENTURY 21 A UNIT OF METROPOLITAN LIFE INSURANCE CO NEW YORK IS CONSIDERED A BELLWETHER BECAUSE IT IS ONE OF THE LARGEST REAL ESTATE BROKERS MR LOUGHLIN CITED MORTGAGE RATES THAT HAVE FALLEN BELOW THE PSYCHOLOGICALLY IMPORTANT 7 LEVEL AND INCREASING CONSUMER CONFIDENCE IT'S A VERY HEALTHY RECOVERY HE SAID PREDICTING THAT 1994 WOULD BE EVEN STRONGER CENTURY 21 SAID SALES IN THE SOUTHWEST AND ROCKY MOUNTAIN REGIONS CONTINUED TO LEAD THE UPSURGE ARIZONA POSTED A 22 JUMP IN SEPTEMBER WHILE FLORIDA CLIMBED 16 MR LOUGHLIN SAID THE ONLY EXCEPTION WAS CALIFORNIA WHERE SALES DROPPED 7 9310060022 931006 FORMER OFFICIAL OF HOUSE BANK ADMITS CHARGES BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON JACK RUSS A FORMER HOUSE SERGEANTATARMS AGREED TO PLEAD GUILTY TO THREE FELONIES INVOLVING THE HOUSE BANKING FACILITY WHICH HE ONCE SUPERVISED IN A PLEA AGREEMENT MR RUSS ADMITTED BOUNCING 17 CHECKS TOTALING 75300 AT THE HOUSE BANK IN 1989 THE CHECKS WERE DRAWN ON MR RUSS' PERSONAL CREDITUNION ACCOUNT AND WERE CASHED AT THE HOUSE BANK AT TIMES WHEN RUSS KNEW HE DID NOT HAVE SUFFICIENT FUNDS OR CREDIT TO COVER THOSE CHECKS THE JUSTICE DEPARTMENT SAID MR RUSS ALSO ACKNOWLEDGED COMMITTING WIRE FRAUD IN A 1990 SCHEME TO CHEAT SEVERAL PEOPLE WHO LENT HIM MONEY OR INVESTED IN A COMPANY HE OWNED SOME OF THE FUNDS WERE DIVERTED FROM THE BUSINESS WHICH MADE WOODEN DISPLAY CASES FOR FLAGS TO OTHER USES ACCORDING TO THE JUSTICE DEPARTMENT AS A RESULT OF RUSS'S SCHEME AND ARTIFICE THESE INVESTORS AND LENDERS GAVE 545000 AND LOST APPROXIMATELY 445000 THE DEPARTMENT SAID THE THIRD CHARGE IS THAT MR RUSS FILED A FALSE FINANCIALDISCLOSURE STATEMENT OMITTING 221125 IN LIABILITIES RELATED DIRECTLY TO THE CHECKBOUNCING AND FLAGCASE SCHEMES MR RUSS COULD BE SENTENCED TO AS LONG AS 20 YEARS IN PRISON AND FINED ALMOST 16 MILLION BUT THIS MAXIMUM PENALTY IS UNLIKELY HE COVERED ALL OF HIS BOUNCED CHECKS BY MIDNOVEMBER 1989 PAUL KNIGHT MR RUSS'S LAWYER SAID THE PLEA AGREEMENT DOESN'T CALL FOR MR RUSS TO TESTIFY AGAINST OTHERS ACCORDING TO A JUNE SURVEY BY THE ASSOCIATED PRESS ONLY ONE CURRENT HOUSE MEMBER AND NINE FORMER ONES EITHER HAVEN'T RECEIVED LETTERS CLEARING THEM OF WRONGDOING IN THE BANK SCANDAL OR WOULDN'T SAY WHETHER THEY HAD MR RUSS RESIGNED HIS HOUSE POSITION IN MARCH 1992 AFTER BEING REBUKED BY THE CHAMBER FOR NEGLECTFUL BANK ADMINISTRATION HUNDREDS OF CURRENT AND FORMER HOUSE MEMBERS WERE TAINTED IN THE HOUSE BANK SCANDAL FOR CASHING CHECKS THAT WEREN'T COVERED BY SUFFICIENT FUNDS MR RUSS ROSE THROUGH THE HOUSE ADMINISTRATION PATRONAGE SYSTEM FROM DOORMAN IN 1967 TO THE SERGEANTATARMS POSITION IN 1983 IN THIS POST HE ALSO WAS PARTLY RESPONSIBLE FOR THE CAPITOL'S 1200MEMBER POLICE FORCE EVEN BEFORE THE BANK SCANDAL MR RUSS WASN'T WITHOUT CONTROVERSY HE HAD BEEN CRITICIZED FOR STAGING THE PHONY ARREST OF HIS ASSISTANT AS A JOKE AT A BACHELOR PARTY AND FOR SELLING HIS FLAG CASES IN A HOUSE STATIONERY STORE 9310060021 931006 INTERNATIONAL BRIEF NIPPON TELEGRAPH & TELEPHONE CORP FIRM URGES 1000 MANAGERS TO ACCEPT EARLY RETIREMENT NIPPON TELEGRAPH & TELEPHONE CORP JAPAN'S TELECOMMUNICATIONS GIANT CALLED FOR VOLUNTARY EARLY RETIREMENT OF ABOUT 1000 MANAGERS BETWEEN THE AGES OF 45 AND 57 THE LATEST MOVE IS PART OF THE PLAN ANNOUNCED IN FEBRUARY TO SLASH THE WORK FORCE BY 30000 PEOPLE FROM 230000 PEOPLE BY APRIL 1996 IN AUGUST NTT CALLED FOR VOLUNTARY RETIREMENT OF 10000 NONMANAGERIAL EMPLOYEES NTT HAS ABOUT 25000 MANAGERIAL STAFF MOST OF WHOM FALL INTO THE 45TO57 AGE BRACKET A SPOKESWOMAN SAID THOSE WHO RETIRE UNDER THE LATEST PROGRAM WILL RECEIVE AN ADDITIONAL RETIREMENT BONUS EQUIVALENT TO NINE TO 12 MONTHS OF SALARY 9310060020 931006 SMALL STOCK FOCUS MARKET RALLY ENDS AS SEMICONDUCTOR DISKDRIVE ISSUES TOUCH OFF A DECLINE BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK AN EARLY AFTERNOON SLUMP ENDED THE MORE THAN WEEKLONG SMALLCOMPANY RALLY AS SEMICONDUCTOR AND DISKDRIVE MAKERS LED TECHNOLOGY STOCKS LOWER BUT A SMALL LATE UPTURN ON THE NEW YORK STOCK EXCHANGE HELPED SMALLCAPITALIZATION ISSUES INCH ABOVE THEIR LOWEST LEVELS OF THE DAY THE RUSSELL 2000 INDEX WHICH HAD FINISHED AT RECORD LEVELS FOR THE PAST SEVEN SESSIONS EASED 048 POINTS OR 019 TO 25307 THE INDEX TRACKS THE PERFORMANCE OF SMALLCAP STOCKS TRADED OVER THE COUNTER AND ON THE MAJOR EXCHANGES THE NASDAQ COMPOSITE INDEX ALSO SUCCUMBED TO PRESSURE FROM THE WEAK TECHNOLOGY ISSUES FALLING 257 POINTS OR 034 TO 76227 NASDAQ DECLINERS EDGED OUT ADVANCING STOCKS 1490 TO 1453 NASDAQ NATIONAL MARKET VOLUME ROSE TO 2669 MILLION SHARES FROM 1975 MILLION SHARES MONDAY SMALLER STOCKS STARTED THE DAY STRONG FOLLOWING OTHER EQUITIES HIGHER ON STRENGTH IN OVERSEAS MARKETS FRANKFURT LONDON AND TOKYO PRICES ALL CLIMBED HIGHER APPARENTLY TAKING COMFORT FROM A RESOLUTION OF THE POLITICAL TURMOIL IN RUSSIA BUT SMALLCAP ISSUES WERE UNABLE TO REMAIN IN POSITIVE TERRITORY WHEN SEVERAL TECHNOLOGY LEADERS DROPPED SHARPLY TECHNOLOGY STOCKS NOSEDIVED FOLLOWING A MIDDAY CONFERENCE CALL BETWEEN ADVANCED MICRO DEVICES OFFICIALS AND ANALYSTS THE COMPANY REFUSED TO DISCUSS CURRENT ORDER TRENDS FUELING FEARS THAT BAD NEWS WAS BEHIND THE SILENCE ADVANCED MICRO NYSE WHICH GAVE UP 4 3/4 TO FINISH AT 22 REPORTED DISAPPOINTING THIRDQUARTER EARNINGS YESTERDAY MORNING THIS IS PROBABLY TELLING US THAT THE MARGINS ARE GOING TO BE SOMEWHAT SQUEEZED IN THE HIGH TECH AREA AND THIS WILL REFLECT ON SMALL COMPANIES SAID JACK MULDOWNEY HEAD OF EQUITY TRADING AT SCOTT & STRINGFELLOW FINANCIAL EARNINGS FOR THESE STOCKS ARE GOING TO HAVE TO BE PROPELLED BY INCREASES IN SALES AND I DON'T THINK WE'RE GOING TO SEE THAT MR MULDOWNEY ADDED THAT THESE STOCKS HAVE HAD PRETTY GOOD RUNS AND IT'S TIME FOR A BREATHER AMONG CHIP MAKERS INTEL LOST 2 3/4 TO 70 AND APPLIED MATERIALS DECLINED 4 3/4 TO 71 1/4 MEANWHILE ROBERT ANTOLINI HEAD OF OTC TRADING AT DONALDSON LUFKIN & JENRETTE NOTED THAT DISKDRIVE STOCKS WERE ALSO DEFINITELY NOT IN VOGUE TODAY AMONG DISKDRIVE MAKERS APPLIED MAGNETICS NYSE EDGED DOWN 1/4 TO 6 MAXTOR EASED 1/8 TO 4 7/8 AND SEAGATE TECHNOLOGY GAVE UP 3/8 TO 16 7/8 BUT MAGIC SOFTWARE ENTERPRISES OF ISRAEL CLIMBED 2 3/4 TO 17 FOLLOWING AN INITIAL BUY RATING FROM HANCOCK INSTITUTIONAL EQUITY SERVICES ANALYST BEN ROSE SAID MAGIC SOFTWARE HAS DEVELOPED STRONG EUROPEAN AND JAPANESE ACCOUNT PENETRATION WITH ITS SOFTWARE TOOLS WHICH REQUIRE LITTLE FORMAL PROGRAMMING EXPERIENCE CIRCON CORP SANTA BARBARA CALIF GOT A 1 1/2POINT BOOST TO 13 1/4 FURMAN SELZ ANALYST SAMUEL NAVARRO REITERATED HIS BUY RATING AND SAID HE EXPECTS THE COMPANY TO HAVE A STRONG THIRD QUARTER HE SEES SALES SURPASSING HIS EARLIER ESTIMATE OF 205 MILLION COMPARED WITH 194 MILLION A YEAR EARLIER CIRCON MAKES MEDICAL ENDOSCOPE SYSTEMS GENUS ROSE 1/4 TO 3 3/8 THE SUNNYVALE CALIF COMPANY GOT A 14 MILLION ORDER FROM GOLDSTAR CO'S GOLDSTAR SEMICONDUCTOR UNIT FOR A GENUS TUNGSTEN SILICIDE LOW PRESSURE CHEMICAL VAPOR DEPOSITION SYSTEM USED IN MAKING SEMICONDUCTORS TARGET THERAPEUTICS FREMONT CALIF PLUNGED 5 3/4 TO 15 THE COMPANY SAID CHANGES IT IS EXAMINING FOR ITS GUGLIELMI DETACHABLE COIL SYSTEM AN INVESTIGATIONAL MEDICAL DEVICE TO TREAT HIGHRISK OR INOPERABLE CEREBRAL ANEURYSMS WILL HURT EARNINGS FOR THE FISCAL SECOND QUARTER ENDED SEPT 30 COLLAGEN PALO ALTO CALIF WHICH SPUN OFF TARGET AND STILL HOLDS A 30 STAKE SLIPPED 1 TO 27 1/2 MELAMINE CHEMICALS SHED 1 1/4 TO 5 THE DONALDSONVILLE LA COMPANY SAID IT HAS BEGUN ITS ANNUAL MAINTENANCE SHUTDOWN MELAMINE SAID ITS CASH POSITION IS EXPECTED TO IMPROVE DURING THE PERIOD BUT OPERATING LOSSES WILL INCREASE BECAUSE OF FIXED COSTS AMONG NEW ISSUES NATIONAL PICTURE & FRAME CLOSED AT 9 1/2 DOWN FROM ITS OFFERING PRICE OF 1050 A SHARE THE GREENWOOD MISS FRAME AND PICTURE COMPANY SAID IT WILL USE PROCEEDS TO REPAY DEBT REDEEM PREFERRED STOCK AND EXPAND FACILITIES MEDICUS SYSTEMS FINISHED THE SESSION AT 12 UP FROM A PRICING AT 1175 A SHARE LATE MONDAY THE EVANSTON ILL SOFTWARE COMPANY PLANS TO USE PROCEEDS TO FUND ACQUISITIONS OF COMPANIES AND PRODUCTS TO PROVIDE WORKING CAPITAL FOR ACQUIRED COMPANIES AND TO PURCHASE DATAPROCESSING HARDWARE AND RELATED ASSETS 9310060019 931006 WHAT'S NEWS BUSINESS AND FINANCE QVC PROVIDED PARAMOUNT WITH PROOF THAT IT HAS FINANCING FOR ITS 95 BILLION TAKEOVER OFFER CLEARING THE WAY FOR PARAMOUNT TO BEGIN CONSIDERING THE QVC BID ALONG WITH VIACOM'S FRIENDLY OFFER AT THE SAME TIME QVC IS CONSIDERING SEEKING ADDITIONAL FINANCING FROM POTENTIAL PARTNERS THAT QVC COULD USE TO SWEETEN ITS OFFER IF VIACOM BOOSTS ITS 74 BILLION BID METROPOLITAN LIFE IS BEING INVESTIGATED IN SEVERAL STATES FOR USING QUESTIONABLE TACTICS TO SELL THOUSANDS OF INSURANCE POLICIES ACROSS THE COUNTRY AN ERNST & YOUNG IRISH BRANCH AGREED TO PAY 110 MILLION TO SETTLE CHARGES OF NEGLIGENCE IN AUDITING A BIG IRISH INSURER THAT COLLAPSED IN 1985 THE SEC IS EXPECTED TO ANNOUNCE RULES TODAY THAT WOULD FORCE RETAIL STOCK BROKERS TO DISCLOSE THE INDUCEMENTS THEY GET FOR STEERING BUYANDSELL ORDERS TO MARKET MAKERS THE BIG THREE CAR MAKERS ACCOUNTED FOR 73 OF THE NEW CARS AND LIGHT TRUCKS SOLD IN THE US IN THE 1993 MODEL YEAR UP FROM 72 IN 1992 JAPAN'S US MARKET SHARE FELL TO 23 THE FIRST DROP IN AT LEAST A DECADE THE WORLD'S LARGEST PENSION PLAN WILL ANNOUNCE PLANS TODAY TO BECOME A SHAREHOLDER ACTIVIST AT ALL 1500 COMPANIES IN WHICH IT HOLDS STOCK SOME INSTITUTIONAL INVESTORS ARE CHANGING TACTICS IN SEEKING CHANGE AT COMPANIES WITH POOR EARNINGSPOISON PILLS AND HIGH EXECUTIVE PAY SHELL OIL AND BRITISH PETROLEUM PLAN TO SPEND 12 BILLION BUILDING THE DEEPEST OFFSHORE OIL AND GAS PLATFORM EVER TO PROBE US WATERS EUROPEAN SHARE PRICES CLIMBED SHARPLY AMID BULLISH MARKET FACTORS AFTER CALM WAS RESTORED IN RUSSIA FRANKFURT SHARES SURGED TO A HIGH CLINTON'S LABOR CHIEF TOLD THE AFLCIO THAT ITS AGENDA IS THE SAME AS THE ADMINISTRATION'S IN A SPEECH LIKELY TO UNSETTLE MANY IN CORPORATE AMERICA COCACOLA FIRED LINTASNEW YORK AFTER MONTHS OF MOUNTING DISSATISFACTION WITH ITS DIET COKE ADVERTISING AND HIRED LOWE & PARTNERS TO TAKE OVER GENERAL ELECTRIC BACKED AWAY FROM BUYING CHRYSLER'S FLEET OF RAILROAD BOXCARS BOWING TO PRESSURE FROM REGULATORS OVER ANTITRUST CONCERNS FUTURE COMMUNICATIONS AND ITS TOP OFFICER WERE SUED BY THE SEC WHICH ACCUSED THEM OF FRAUDULENTLY INFLATING THE VALUE OF THE COMPANY'S STOCK ADVANCED MICRO DEVICES' PROFIT ROSE 25 IN ITS THIRD QUARTER BUT THE SIZE OF THE GAIN DISAPPOINTED WALL STREET THE CHIP MAKER'S STOCK PRICE FELL 475 OR 18 TO 22 PULLING DOWN OTHER SEMICONDUCTOR SHARES THE HOUSE APPROVED LEGISLATION FOR THE GOVERNMENT SECURITIES MARKET THAT WOULD PLACE NEW CONTROLS ON SALES PRACTICES AND IMPOSE REPORTING AND RECORDKEEPING REQUIREMENTS JAPAN SEEMS LIKELY TO CUT INCOME TAXES BOWING TO PRESSURES TO STIMULATE ITS SLUGGISH ECONOMY BUT SOME OPPONENTS OF A TAX CUT SAID MOST JAPANESE CONSUMERS WOULD LIKELY SAVE RATHER THAN SPEND ANY TAX SAVINGS BONDS LEHMAN BROTHERS TREASURY INDEX 563457 OFF 226 COMMODITIES OIL 1839 A BARREL OFF THREE CENTS DOW JONES FUTURES INDEX 12560 UP 026 SPOT INDEX 11766 UP 064 DOLLAR 10575 YEN OFF 005 16260 MARKS UP 00022 9310060018 931006 BUSINESS BRIEF ALLEGHENY LUDLUM CORP NIPPON IS TO PAY 5 MILLION SETTLING 1989 PATENT DISPUTE ALLEGHENY LUDLUM CORP SAID JAPAN'S NIPPON STEEL CORP WILL PAY THE PITTSBURGH SPECIALTY STEEL COMPANY 5 MILLION AFTER THE PATENT AND TRADEMARK OFFICE'S APPEALS BOARD UPHELD THE VALIDITY OF AN ALLEGHENY MANUFACTURING PATENT THE PATENT COVERING A PRODUCTION PROCESS FOR GRAINORIENTED SILICON ELECTRICAL STEEL USED IN MAKING HIGHEFFICIENCY ELECTRICAL EQUIPMENT WAS THE SUBJECT OF A 1989 LAWSUIT AGAINST NIPPON STEEL NIPPON STEEL PAID ALLEGHENY 5 MILLION IN AN INITIAL SETTLEMENT IN 1991 BUT A SECOND 5 MILLION WAS BLOCKED PENDING THE PATENT'S VALIDATION BY THE OFFICE THE OFFICE REFUSED TO UPHOLD THE PATENT BUT THE APPEALS BOARD DECISION REVERSES THAT RULING ALLEGHENY SAID THE PAYMENT WILL WIND UP THE CASE 9310060017 931006 WHAT'S NEWS WORLDWIDE MORE US TROOPS HEADED TO SOMALIA AMID CALLS FOR QUICK WITHDRAWAL OVER 600 AMERICAN SOLDIERS ARMED WITH SPECIALIZED WEAPONS WERE PREPARED TO LEAVE FOR SOMALIA AS CLINTON ADMINISTRATION OFFICIALS TRIED WITH LITTLE SUCCESS TO QUIET CONGRESSIONAL CALLS FOR A PULLOUT OF US FORCES CLINTON MET WITH HIS TOP NATIONAL SECURITY ADVISERS TO REVIEW THE SITUATION ESPECIALLY THE INCREASED US CASUALTIES MEANWHILE ARMY OFFICIALS SAID THIS WEEK'S US LOSSES MIGHT HAVE BEEN FAR LIGHTER IF DEFENSE SECRETARY ASPIN HAD TAKEN ACTION ON LAST MONTH'S REQUEST BY THE US COMMANDER THERE FOR ADDITIONAL ARMORED PROTECTION SECRETARY OF STATE CHRISTOPHER SAID NEW ATTACKS COUPLED WITH THE NEED TO FIND MISSING AMERICANS MEANT IT CERTAINLY IS NOT THE TIME FOR US TO DEPART YELTSIN TOOK STEPS TO TIGHTEN HIS GRIP ON THE RUSSIAN GOVERNMENT HAVING CRUSHED HIS OPPONENTS IN PARLIAMENT PRESIDENT YELTSIN MOVED TOWARD UNCHALLENGED ONEMAN RULE AT LEAST UNTIL ELECTIONS ARE HELD HE FIRED THE RUSSIAN PROSECUTORGENERAL DISMISSED TWO PROVINCIAL ADMINISTRATORS AND DISSOLVED THE MOSCOW CITY COUNCIL A YELTSIN ADVISER SAID THE GOVERNMENT WAS PREPARING TO SUSPEND MANY OF THE REGIONAL COUNCILS THAT ARE RUSSIA'S BASIC LAWMAKING BODIES HEAVILY ARMED TROOPS WITH ARMORED PERSONNEL CARRIERS GUARDED GOVERNMENT OFFICES AND A STATE OF EMERGENCY AND OVERNIGHT CURFEW REMAINED IN EFFECT CHINA CONDUCTED A NUCLEAR TEST AND THE US WEIGHED RESUMPTION OF TESTS THE CHINESE GOVERNMENT IGNORED INTERNATIONAL OBJECTIONS AND WENT AHEAD WITH THE UNDERGROUND DETONATION OF A NUCLEAR DEVICE WASHINGTON SAID IT REGRETTED THE ACTION AND CALLED ON BEIJING TO REFRAIN FROM FURTHER NUCLEAR TESTS AND TO JOIN THE OTHER NUCLEAR POWERS IN A MORATORIUM CLINTON DIRECTED THE ENERGY DEPARTMENT TO PREPARE FOR A POSSIBLE RESUMPTION OF US TESTING NEXT YEAR CLINTON'S RESPONSE RATHER THAN SIGNALING AN INTENT TO ORDER A TEST SOON WAS SEEN AS A JAB AT CHINA AND A WAY OF RETAINING A US TESTRESUMPTION OPTION A FORMER HOUSE OFFICIAL AGREED TO PLEAD GUILTY TO THREE FELONIES INVOLVING THE HOUSE BANKING FACILITY WHICH HE ONCE SUPERVISED ACCORDING TO COURT PAPERS THE FORMER SERGEANTATARMS JACK RUSS ADMITTED BOUNCING 17 CHECKS TOTALING 75300 AT THE HOUSE BANK IN 1989 HE RESIGNED FROM HIS POST LAST YEAR RABIN AND ARAFAT SCHEDULED THEIR FIRST OFFICIAL TALKS TODAY IN CAIRO TO DISCUSS IMPLE MENTATION OF THE ISRAELIPLO ACCORD SIGNED LAST MONTH THE MEETING BETWEEN THE ISRAELI PRIME MINISTER AND THE PLO CHAIRMAN COMES AMID TENSIONS IN THE OCCUPIED TERRITORIES OVER ATTACKS BY PALESTINIAN RADICALS AND ISRAELI ARMY RAIDS ON ACTIVISTS SYRIAN PRESIDENT ASSAD PROPOSED THAT HE MEET WITH PRESIDENT CLINTON CONCERNING THE SLOWMOVING TALKS WITH ISRAEL OVER THE FUTURE OF THE GOLAN HEIGHTS SECRETARY OF STATE CHRISTOPHER STRESSED THOUGH THAT THE TERRITORIAL DISPUTE COULD BE RESOLVED ONLY THROUGH SYRIAN NEGOTIATIONS WITH ISRAEL ANIMAL FAT IN THE DIET SEEMS TO PROMOTE THE GROWTH OF SMALL LATENT PROSTATE TUMORS MAKING THEM MORE LIKELY TO TURN LETHAL HARVARD RESEARCHERS SAID THEIR REPORT IN THE JOURNAL OF THE NATIONAL CANCER INSTITUTE WAS TERMED THE STRONGEST EVIDENCE YET THAT PROSTATE CANCER LIKE BREAST AND COLON CANCER MAY BE LINKED TO DIETARY FAT POPE JOHN PAUL II ISSUED AN ENCYCLICAL TO ROMAN CATHOLIC BISHOPS ASSERTING THAT CERTAIN ACTIONS ARE ALWAYS EVIL AND DENOUNCING THE SYSTEMATIC CALLING INTO QUESTION OF TRADITIONAL MORAL DOCTRINE THE 180PAGE DOCUMENT IN PREPARATION FOR SIX YEARS REFLECTS THE PONTIFF'S VIEW THAT THE WORLD IS FACING A DEEP MORAL CRISIS SOME GOVERNMENT TROOPS DEFECTED TO THE SIDE OF A RIVAL MUSLIM LEADER IN BOSNIA'S NORTHERN ENCLAVE OF BIHAC ACCORDING TO LOCAL REPORTS MARKING A SETBACK FOR THE COUNTRY'S MUSLIM PRESIDENT SEPARATELY UN OFFICIALS EXPRESSED CONCERN ABOUT 150 000 MUSLIM CITIZENS TRAPPED IN TWO NORTHERN TOWNS UNDER SIEGE BY SERBS AND CROATS GEORGIAN LEADER SHEVARDNADZE IMPOSED A CURFEW IN THE CAPITAL TBILISI AND IN REGIONS THAT HAVE BEEN TORN BY FIGHTING ETWEEN GOVERNMENT TROOPS AND INSURGENTS LOYAL TO OUSTED PRESIDENT GAMSAKHURDIA THE OVERNIGHT CURFEW WAS ANNOUNCED FOLLOW ING REPORTS OF WIDESPREAD FIGHTING THROUGH OUT WESTERN GEORGIA 9310060016 931006 MANAGING YOUR CAREER BY TIMOTHY D SCHELLHARDT FRIENDS WANT YOU TO RUN FOR A SCHOOLBOARD SEAT OR GET ACTIVE WITH THE LOCAL UNITED WAY CAMPAIGN OR HELP LOOK FOR A NEW PASTOR AT YOUR CHURCH OR COACH YOUR DAUGHTER'S SOCCER TEAM SHOULD YOU PERHAPS BUT CHOOSE YOUR GOOD DEEDS CAREFULLY AND BUDGET THE TIME SPENT ON THEM OR IT COULD BE HARMFUL TO YOUR CAREER'S HEALTH NOT SO LONG AGO MANY COMPANIES ROUTINELY URGED PEOPLE TO GET INVOLVED IN VOLUNTEER COMMUNITY WORK SOME STILL DO BUT OFTEN WITH LESS SINCERITY IN TODAY'S LEANANDMEAN CORPORATE ENVIRONMENT PEOPLE ARE VIEWED AS COSTS TO BE CUT AS MUCH AS ASSETS TO BE DEVELOPED THE NEW REALITIES DICTATE THAT YOU SPEND MORE OF YOUR ENERGIES NOT LESS ON THE JOB CAREER COUNSELORS SAY COMMUNITY SERVICE CAN BE A HARD FIT IN THE CURRENT DOGEATDOG WORLD OF WORK HERE'S WHAT YOU ARE UP AGAINST CONSIDER THE INTERNAL MEMO THAT RONALD T LEMAY PRESIDENT OF THE LONGDISTANCE DIVISION OF SPRINT SENT EMPLOYEES AFTER THE COMPANY ANNOUNCED IN LATE AUGUST THAT 5 OF THE LONGDISTANCE WORK FORCE WOULD BE DISMISSED TO THE SURVIVORS MR LEMAY SAID I ASK EACH OF YOU TO BE INTROSPECTIVE ABOUT THE ADEQUACY OF YOUR COMMITMENT TO SPRINT FORTYHOUR WORKWEEKS ARE A RELIC OF THE PAST LISTEN TO CONSULTANT ROBERT LEFTON PRESIDENT OF PSYCHOLOT LOUIS IF I WERE A MANAGER TODAY AND HAD AN EMPLOYEE WHO WAS EXTRAORDINARILY TASKORIENTED AND ANOTHER WHO WAS A MEDIOCRE PERFORMER BUT A GREAT CITIZEN IN THE COMMUNITY I'D PROMOTE THE PERSON GETTING THE IMPORTANT THINGS DONE IN THE COMPANY WHO'S KIDDING WHOM THE VERY SURVIVAL OF THE CORPORATION IS AT STAKE SIMPLY ASK YOURSELF IN A PERFORMANCE REVIEW HAS MY BOSS EVER ASKED ABOUT MY VOLUNTEER ACTIVITIES HAS THAT INVOLVEMENT OR LACK OF INVOLVEMENT EVER BEEN A FACTOR IN MY CONSIDERATION FOR A MERIT RAISE OR PROMOTION A FEW COMPANIES SUCH AS GENERAL MILLS MINNEAPOLIS AND SCHUCKS SUPERMARKETS ST LOUIS DO CONSIDER COMMUNITY INVOLVEMENT WHEN THEY CONDUCT ANNUAL PERFORMANCE AND COMPENSATION REVIEWS SUCH EMPLOYERS ARE THE EXCEPTION HOWEVER HOWARD FRICKE CHIEF EXECUTIVE OFFICER OF SECURITY BENEFIT GROUP CONTENDS THAT HIS COMPANY'S VOLUNTEER PROGRAM IN WHICH 63 OF ITS 550 EMPLOYEES WORK IN THE COMMUNITY IN SOME CAPACITY EACH YEAR AND OFTEN GET TIME OFF TO DO IT RAISES PRODUCTIVITY AND REVENUE FOR THE TOPEKA KAN INSURER BUT IT'S NOT A PERFORMANCE ISSUE MR FRICKE CONCEDES YOU WON'T BE PROMOTED OR PENALIZED ON THE BASIS OF WHETHER YOU VOLUNTEER OR NOT MANY PEOPLE DO REAP CAREER BENEFITS FROM COMMUNITY SERVICE OF COURSE IF YOU'RE IN SALES AND MARKETING IT'S STILL CONSIDERED A CRITICAL NETWORKING TOOL FOR EXAMPLE IN MANY SMALL TOWNS VOLUNTEERING IS AN IMPORTANT WAY FOR BANK AND UTILITY MANAGERS TO PROMOTE THEIR EMPLOYER'S IMAGE COMMUNITY WORK ALSO OFFERS THE CHANCE TO DEVELOP LEADERSHIP SKILLS AND GAIN COMPETENCIES YOU MIGHT NOT PICK UP AS QUICKLY IN YOUR JOB WORKFAMILY CONSULTANT BETH MICHAELS SAYS SHE IMPROVED SUCH SKILLS AS PROBLEM SOLVING BUDGETING AND LONGTERM PLANNING WHEN SHE WAS PRESIDENT OF A LARGE CHICAGO FILM SOCIETY AND WORKED WITH ITS HIGHPOWERED BOARD THERE'S NO WAY IN THE WORLD I COULD HAVE GOTTEN THAT EXPERIENCE IN MY CORPORATE JOB THEN SHE SAYS FOR YOUNG PROFESSIONALS TAKING A LEAD ROLE IN A NONPROFIT ACTIVITY MAY BE THE ONLY WAY THEY'RE GOING TO GET TO SUPERVISE ANYTHING BEFORE THEY'RE 30 SAYS MARILYN MOATS KENNEDY A WILMETTE ILL CAREER ADVISER THAT'S ESPECIALLY TRUE IF IT'S YOUR FIRST YEAR IN A NEW JOB IN TODAY'S ENVIRONMENT YOU MUST MASTER A NEW JOB QUICKER THAN EVER OR FACE DISMISSAL WORKPLACE EXPERTS ACKNOWLEDGE EMPLOYEES OFTEN KNOW LITTLE ABOUT THEIR EMPLOYER'S PERCEPTION OF COMMUNITY WORK OR ABOUT THE DEMANDS OF THE VOLUNTEER JOB SO WHAT SHOULD YOU DO DETERMINE YOUR BOSS'S PERCEPTION OF COMMUNITY WORK AND ALSO THE DEMANDS OF THE VOLUNTEER JOB PICK A COMMUNITY ACTIVITY THAT CLOSELY ALIGNS YOUR OWN NEEDS WITH THOSE OF THE COMPANY SUGGESTS GEORGE MOSKOFF A MANAGEMENT CONSULTANT IN BATAVIA ILL YOUR COMPANY'S HUMANRESOURCES DEPARTMENT CAN HELP IDENTIFY WHO HAS DONE COMMUNITY WORK THAT HAS BEEN OF VALUE TO BOTH THE INDIVIDUAL AND THE CORPORATION AND ALSO INDICATE WHETHER SUCH WORK IS STILL VALID DISCUSS ANY SIGNIFICANT COMMUNITY INVOLVEMENT WITH YOUR SUPERIORS ADVISES NELLA BARKLEY A NEW YORK CAREER CONSULTANT ASK HOW DO YOU FEEL ABOUT THIS HOW MUCH TIME DO YOU THINK IS ACCEPTABLE' IDENTIFY WHAT YOU SEE AS BENEFITS OF THE ENDEAVOR AND ASK YOUR BOSS WHAT DO YOU SEE' SPEAK ABOUT IT VERY POSITIVELY SOME PURSUITS SHOULD PROBABLY BE AVOIDED AS A MIDDLE MANAGER MAINTAINS MS BARKLEY NEVER TAKE A SABBATICAL TO DO COMMUNITY SERVICE BECAUSE YOU'LL BE OUT OF THE CORPORATE MAINSTREAM IF YOU'RE BEING PRESSURED TO DO IT YOU'RE BEING DEADENDED AND YOU NEED A DIFFERENT CAREER ROUTE WITH THAT CORPORATION GETTING INVOLVED POLITICALLY ESPECIALLY WITH A POTENTIALLY EXPLOSIVE ISSUE SUCH AS ABORTION PROBABLY WON'T HELP YOUR CORPORATE CAREER EITHER ESPECIALLY IF YOU LAND ON THE OPPOSITE SIDE FROM YOUR BOSS SCHNUCK MARKETS INC OF ST LOUIS CONSIDERS AN EMPLOYEE'S COMMUNITY INVOLVEMENT WHEN ASSESSING THE INDIVIDUAL'S ANNUAL PERFORMANCE THE COMPANY'S NAME WAS MISSPELLED IN YESTERDAY'S MANAGING YOUR CAREER COLUMN 9310060015 931006 BUSINESS BRIEF PHILIP MORRIS COS KRAFT JACOBS SUCHARD BUYS LITHUANIAN CANDY COMPANY A EUROPEANBASED UNIT OF PHILIP MORRIS COS HAS ACQUIRED THE LEADING CHOCOLATE CONFECTIONERY COMPANY IN LITHUANIA SWISSBASED KRAFT JACOBS SUCHARD A UNIT OF PHILIP MORRIS'S KRAFT GENERAL FOODS INTERNATIONAL SIGNED AN AGREEMENT WITH THE LITHUANIAN GOVERNMENT TO ACQUIRE 67 OF THE SHARES OF THE KAUNAS CF CONFECTIONERY COMPANY THE REMAINING SHARES OF THE COMPANY WILL BE RETAINED BY KAUNAS EMPLOYEES PHILIP MORRIS SAID THAT FOLLOWING THE ACQUISITION KRAFT JACOBS SUCHARD INTENDS TO INVEST IN MODERNIZING THE FACTORY AND IN INCREASING PRODUCTION FOUNDED IN 1888 KAUNAS IS LOCATED IN THE CENTER OF LITHUANIA AND EMPLOYS 800 PEOPLE IN 1992 KAUNAS PRODUCED 7000 TONS OF VARIOUS CONFECTIONERY PRODUCTS AND HAD TOTAL REVENUE OF ABOUT 10 MILLION KRAFT JACOBS SUCHARD IS A LEADING EUROPEAN FOOD PRODUCTS COMPANY THAT WAS CREATED LAST MONTH FROM THE COMBINATION OF KRAFT GENERAL FOODS EUROPE AND JACOBS SUCHARD 9310060014 931006 BUSINESS BRIEF LOGICON INC SETTLEMENT OF NAVY DISPUTES TO RESULT IN GAIN FOR PERIOD LOGICON INC SAID ITS NET INCOME IN THE FISCAL SECOND QUARTER ENDED SEPT 30 WILL INCLUDE A 34 MILLION ONETIME GAIN EQUAL TO 45 CENTS A SHARE RELATED TO THE SETTLEMENT OF A GOVERNMENT CONTRACT DISPUTE THE PACT COMES ON THE HEELS OF A SETTLEMENT LAST SUMMER OF A SIMILAR DISPUTE OVER A DIFFERENT GOVERNMENT CONTRACT THE GAIN INCLUDING THE EARLIER SETTLEMENT IS EXPECTED TO TOTAL 38 MILLION OR 50 CENTS A SHARE IN LAST YEAR'S SECOND QUARTER THE LOS ANGELES COMPANY REPORTED NET OF 37 MILLION OR 49 CENTS A SHARE THE 1987 CONTRACTS WERE BOTH FOR AIR TRAFFIC CONTROLLER TRAINING SYSTEMS THE COMPANY ALLEGED THAT THE NAVY CAUSED THE COMPANY TO DO MORE WORK THAN THE CONTRACTS REQUIRED LOGICON DIDN'T DISCLOSE THE SPECIFIC SETTLEMENT AMOUNTS LOGICON A PROVIDER OF ADVANCED TECHNOLOGY SERVICES FOR MILITARY AND COMMERCIAL APPLICATIONS SAID IT EXPECTS TO REPORT SECONDQUARTER RESULTS NEXT MONTH 9310060013 931006 WHO'S NEWS AMERICAN TELEPHONE & TELEGRAPH CO AMERICAN TELEPHONE & TELEGRAPH CO NEW YORKMERRILL R TUTTON 52 YEARS OLD WAS NAMED PRESIDENT OF AT&T UNITED KINGDOM A NEW POSITION MR TUTTON WILL BE IN CHARGE OF THE COMPANY'S UK MARKET WHERE IT EMPLOYS 7000 WORKERS MR TUTTON WAS PREVIOUSLY SENIOR VICE PRESIDENT GLOBAL STRATEGY AT AT&T AND PRIOR TO THAT PRESIDENT OF THE COMPANY'S CONSUMER COMMUNICATIONS SERVICES 9310060012 931006 WHO'S NEWS VALLEY SYSTEMS OUSTS BURDGE AS ITS PRESIDENT CANAL FULTON OHIO VALLEY SYSTEMS INC SAID ITS BOARD OUSTED ADELBERT D BURDGE FROM HIS POST AS PRESIDENT AFTER JUST THREE MONTHS ON THE JOB MR BURDGE'S DISMISSAL IS THE THIRD EXECUTIVE DEPARTURE AT VALLEY THIS YEAR EUGENE VALENTINE RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN APRIL AND RICHARD M CHAPIS RESIGNED AS PRESIDENT IN JUNE A VALLEY SPOKESMAN WOULD ONLY SAY THE BOARD'S DECISION WAS DONE IN THE BEST INTEREST OF THE COMPANY MR BURDGE 36 YEARS OLD WAS UNAVAILABLE FOR COMMENT VALLEY AN INDUSTRIALCLEANING CONCERN NAMED ED STRICKLAND 46 TO SUCCEED MR BURDGE MR STRICKLAND FORMERLY WAS PRESIDENT OF LOR OPERATING COS AN ATLANTA SUPPLIER OF INDUSTRIAL SERVICES HE ALSO HELD VARIOUS MANAGEMENT POSITIONS WITH ROLLINS INC AN ATLANTA PROVIDER OF HOME SECURITY SYSTEMS AND PEST CONTROL THE PRINCIPAL SHAREHOLDERS IN ROLLINS AND LOR ARE PARTNERS IN ROLLINS INVESTMENT FUND WHICH OWNS 70 OF VALLEY'S COMMON STOCK SINCE MAY MR STRICKLAND HAS SERVED AS A CONSULTANT TO VALLEY THE VALLEY SPOKESMAN SAID MR STRICKLAND WAS UNAVAILABLE FOR COMMENT VALLEY HAS IN PART BLAMED ITS LOSSES THIS YEAR ON PAST ACQUISITIONS AND BRANCH OPENINGS WHICH DROVE UP COSTS LAST YEAR VALLEY WAS STUNG BY AN AUDIT THAT DISCOVERED PROBLEMS WITH ITS ACCOUNTING PRACTICES 9310060011 931006 INTERNATIONAL BRIEF SCHNEIDER SA STOCK PRICE FALLS 7 ON NEWS TIED TO CAPITAL FRAUD PROBE THE STOCK OF FRENCH ELECTRICALEQUIPMENT AND CONSTRUCTION COMPANY SCHNEIDER SA FELL MORE THAN 7 YESTERDAY FOLLOWING ANNOUNCEMENT OF A CAPITAL INCREASE AND ALLEGATIONS OF FRAUD THE BRUSSELS PROSECUTOR'S OFFICE SAID IT HAS OPENED A FRAUD INVESTIGATION OF THE HEAD OF SCHNEIDER DIDIER PINEAUVALENCIENNE THE PROBE FOLLOWS CHARGES MADE BY DISGRUNTLED MINORITY SHAREHOLDERS OF BELGIAN HOLDING COMPANIES COFIMINES SA AND COFIBEL SA WHICH ARE UNITS OF SCHNEIDER SCHNEIDER STOCK BEGAN TO FALL ON THE ANNOUNCEMENT OF A THREEBILLIONFRANC 5297 MILLION CAPITAL INCREASE BUT NEWS OF THE INVESTIGATION SENT IT DOWN FURTHER SCHNEIDER SHARES CLOSED DOWN 28 FRANCS OR 73 TO 358 FRANCS A SHARE 9310060010 931006 WHO'S NEWS TRANZONIC COS TRANZONIC COS CLEVELAND ALAYNE L REITMAN 29 YEARS OLD WAS NAMED VICE PRESIDENT OF FINANCE CHIEF FINANCIAL OFFICER AND TREASURER OF THIS MAKER AND DISTRIBUTOR OF PAPER CLOTH AND VINYL PRODUCTS SHE SUCCEEDS MICHAEL J GANNON WHO LEFT IN AUGUST TO TAKE A SIMILAR POST WITH ANOTHER COMPANY MS REITMAN WHO IS THE DAUGHTER OF ROBERT S REITMAN TRANZONIC'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE JOINED THE COMPANY IN AUGUST 1992 AS GROUP MANAGER OF PROFIT PERFORMANCE IN ADDITION RICHARD J PENNZA 38 FORMERLY CORPORATE CONTROLLER WAS NAMED CHIEF ACCOUNTING OFFICER A POST THAT HAD ALSO BEEN HELD BY MR GANNON THE COMPANY SAID IT CURRENTLY HAS NO PLANS TO NAME A SUCCESSOR TO MR PENNZA 9310060009 931006 BUSINESS BRIEFS BANCTEC INC RECEIVED A FOURYEAR 14 MILLION CONTRACT FROM MARTIN MARIETTA TECHNOLOGIES INC A UNIT OF MARTIN MARIETTA CORP TO PROVIDE NETWORK SUPPORT SERVICES FOR THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT'S NATIONAL COMPUTER NETWORK INTELCOM GROUP INC AGREED TO ACQUIRE BAY AREA TELEPORT INC A TELECOMMUNICATIONS NETWORK OPERATOR AND UNIT OF PACIFIC TELECOM INC FOR STOCK AND CASH VALUED AT ABOUT 124 MILLION NATIONAL WESTMINSTER BANCORP'S NEW YORKBASED BANKING SUBSIDIARY NATIONAL WESTMINSTER BANK USA COMPLETED THE PURCHASE OF THE FOURBRANCH WESTCHESTER COUNTY FRANCHISE OF EAST RIVER SAVINGS BANK WITH 300 MILLION IN DEPOSITS PHARMHOUSE CORP'S 7 MILLION LINE OF CREDIT WAS EXTENDED FROM JANUARY 1995 THROUGH JUNE 30 1996 ON MORE FAVORABLE TERMS GELMAN SCIENCES AND FILTERTEK INC FORMED A STRATEGIC ALLIANCE TO PURSUE A MARKET FOR AUTOMOTIVE VENT DEVICES TERMS WEREN'T DISCLOSED 9310060008 931006 MARKETING & MEDIA ADVERTISING INTERPUBLIC'S LINTAS ABRUPTLY FIRED FROM 61 MILLION DIET COKE JOB BY KEVIN GOLDMAN AFTER MONTHS OF MOUNTING DISSATISFACTION WITH ITS DIET COKE ADVERTISING COCACOLA ABRUPTLY FIRED LINTASNEW YORK THE AGENCY RESPONSIBLE FOR THE DIET BRAND'S ADVERTISING SINCE IT WAS INTRODUCED 11 YEARS AGO COCACOLA ANNOUNCED LATE YESTERDAY THAT THE 61 MILLION ACCOUNT NOW WILL BE HANDLED BY LOWE & PARTNERS LINTAS AND LOWE ARE BOTH OWNED BY INTERPUBLIC GROUP IN AN INTERNAL MEMO TO LINTAS EMPLOYEES F STONE ROBERTS THE AGENCY'S PRESIDENT AND CHIEF OPERATING OFFICER SAID THE LOSS WILL HAVE SOME SERIOUS IMPLICATIONS FOR OUR WORLDWIDE SYSTEM TRANSLATION THERE WILL BE ADDITIONAL LAYOFFS ON TOP OF THE FIRING OF ABOUT 50 LINTAS EMPLOYEES SINCE THE BEGINNING OF THE YEAR THE LOSS OF THE HIGHPROFILE ACCOUNT COULDN'T HAVE COME AT A WORSE TIME FOR LINTAS THE AGENCY IS FEVERISHLY ATTEMPTING TO HOLD ONTO TO ANOTHER LARGE PIECE OF BUSINESS INTERNATIONAL BUSINESS MACHINES' PERSONALCOMPUTER ADVERTISING WHICH HAS WORLDWIDE BILLINGS OF 80 MILLION HALF OF WHICH IS HANDLED BY LINTAS LAST YEAR THE AGENCY LOST THE 60 MILLION MASTERCARD ACCOUNT LINTAS HAS DOMESTIC BILLINGS OF 19 BILLION AND WORLDWIDE BILLINGS OF 52 BILLION KENNETH L ROBBINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LINTASWORLDWIDE SAID IN AN INTERVIEW YESTERDAY THAT ONCE COKE EXECUTIVES PULLED THE TASTE IT ALL DIET COKE SPOTS EARLIER THIS YEAR AFTER A FEW MONTHS IT WAS A WHOLE NEW BALLGAME FOR US INDUSTRY EXECUTIVES ARE CONVINCED THAT A NEW ADVERTISING CAMPAIGN NEW SLOGAN AND NEW JINGLE ARE NO LONGER SUFFICIENT TO REMEDY DIET COKE'S WOES RATHER THE SPECULATION ALONG MADISON AVENUE AND AMONG MARKETING EXPERTS IS THAT DIET COKE MUST REINVENT ITSELF WITH NEW PACKAGING AND PERHAPS A NEW AND IMPROVED FORMULA TO CALL ATTENTION TO THE BRAND ADDITIONALLY MINNEAPOLIS AGENCY FALLON MCELLIGOTT A UNIT OF WPP GROUP HAS WON AN ADDITIONAL ASSIGNMENT FROM COCACOLA ALTHOUGH COKE DECLINED TO COMMENT ONE KNOWLEDGEABLE OFFICIAL SAID THE ASSIGNMENT INVOLVED A REDESIGN OF THE FAMILIAR WHITE AND RED PACKAGE THIS OFFICIAL SAID IT IS UNLIKELY THAT DIET COKE WOULD PRODUCE A NEW FORMULA WITHOUT COMMENTING ON WHAT SPECIFICALLY LINTAS SUGGESTED MR ROBBINS SAID THE AGENCY WAS A LITTLE LATE IN SOLVING THE PROBLEM OF HOW DIET COKE SHOULD BE ADVERTISED HE SAID SERGIO ZYMAN COCACOLA'S CHIEF MARKETING OFFICER WHO CAME ON BOARD IN JULY TOLD HIM IN A TELEPHONE CALL MONDAY EVENING THAT LOWE IS ABLE TO GET ITS ADS PRODUCED AND ON THE AIR FASTER THAN LINTAS HE ADDED THAT LOWE SEEMINGLY HAD ITS CREATIVE WORK IN A MORE FINISHED AND POLISHED STATE THAN LINTAS APPARENTLY THOUGH LOWE'S CREATIVE SOLUTION TO DIET COKE'S FALLING SALES WAS SIMPLY SUPERIOR LOWE EXECUTIVES DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT AND COKE DECLINED TO COMMENT ON THE NEW CREATIVE STRATEGY BUT SOME INDUSTRY EXECUTIVES SAY THE STORY MAY NOT END THERE ONE INDUSTRY EXECUTIVE SAYS THAT LOWE MIGHT NOT BE THE ONLY AGENCY TO PRODUCE DIET COKE ADVERTISING THIS EXECUTIVE SAYS THAT D'ARCY MASIUS BENTON & BOWLES A LARGE CLOSELYHELD AGENCY THAT HASN'T PREVIOUSLY PRODUCED WORK FOR COCACOLA AND INTERPUBLIC'S MCCANNERICKSON THE AD AGENCY FOR COKE CLASSIC MAY PRODUCE AT LEAST TWO DIET COKE SPOTS EACH EXECUTIVES AT D'ARCY AND MCCANN DECLINED TO COMMENT THE NEWS THAT MCCANN MAY PRODUCE AT LEAST TWO SPOTS FOR THE ATLANTABASED SOFTDRINK MANUFACTURER MEANS A POSSIBLE SECOND CHANCE FOR THE AGENCY WHICH SAW ITS CREATIVE INPUT INTO THE BIG COKE CLASSIC ACCOUNT REDUCED TO PRACTICALLY NOTHING EARLIER THIS YEAR INSTEAD THE POWERFUL HOLLYWOOD TALENT AGENCY CREATIVE ARTISTS AGENCY PRODUCED VIRTUALLY ALL OF THIS YEAR'S ALWAYS COKE SPOTS WITH MCCANN RESPONSIBLE FOR ONLY TWO THE WELCOME NEWS NEVERTHELESS PUTS PRESSURE ON LOWE WHICH MUST RUSH TO PRODUCE NEW DIET COKE SPOTS IN TIME FOR MAJOR TELEVISION EVENTS THIS WINTER NOTABLY THE NATIONAL FOOTBALL LEAGUE'S SUPER BOWL IN JANUARY RELATIONS BETWEEN COCACOLA AND LINTAS SOURED EARLIER THIS YEAR AFTER THE AGENCY DEVISED A NEW CAMPAIGN THAT WAS IMMEDIATELY CRITICIZED BY MARKETING EXPERTS LOCAL DIET COKE BOTTLERS AND CRITICS THE TASTE IT ALL CAMPAIGN FEATURED MONTAGES OF AMONG OTHER THINGS AN OLDER MAN JUMPING OFF A CLIFF AND INTO THE SURF WITH THE WORDS MINISTERS WHO SURF SURGEONS WHO SCULPT INSURANCE AGENTS WHO SPEED ON MOTORCYCLES THE POORLY RECEIVED ADS REPLACED DIET COKE'S JUST FOR THE TASTE OF IT WHICH WAS ONE OF THE MOST HIGHLY PRAISED JINGLES IN ADVERTISING HISTORY THOSE ADS FEATURED ROCKERS ELTON JOHN AND PAULA ABDUL HIGHKICKING AND SINGING THE CATCHY JINGLE IN A SURPRISING ADMISSION OF THE CAMPAIGN'S FAILURE THE NEW SLOGANS TASTE IT ALL AND ONE AWESOME CALORIE WERE DROPPED AFTER ONLY SEVEN MONTHS THERE WERE NO DIET COKE ADS TO SPEAK OF THIS PAST SUMMER DURING THE SOFTDRINK INDUSTRY'S MOST IMPORTANT SELLING SEASON DIET COKE PUT THE DOOMED SLOGAN ON ITS CANS AND BOTTLES ONLY TO HAVE TO REMOVE IT FROM THE PACKAGING MERE MONTHS LATER DIET COKE AND DIET PEPSI BOTH HAD SALES DECLINES THIS YEAR DIET COKE'S SUPERMARKET SALES SLIPPED 26 TO 6189 MILLION FOR THE 28 WEEKS ENDED JULY 11 ACCORDING TO INFORMATION RESOURCES RIVAL DIET PEPSI'S SALES FELL 61 TO 4349 MILLION DESPITE THE POPULARITY OF SINGER RAY CHARLES AND THE UHHUH FEMALE TRIO DIET COKE HAS AN 114 SHARE OF THE SOFTDRINK MARKET DIET PEPSI'S SHARE TOTALS 8 THE SELECTION OF THE LOWE AGENCY COMES ALMOST ONE MONTH AFTER A LOWE EXECUTIVE DAVID WHELDON MANAGING DIRECTOR OF THE LONDONBASED AGENCY LOWE HOWARDSPINK JOINED COKE AS ITS DIRECTOR OF ADVERTISING THE END CAME QUICKLY FOR LINTAS IT PRESENTED ITS NEW CREATIVE CAMPAIGN TO COKE EXECUTIVES IN ATLANTA ON FRIDAY LATE MONDAY EVENING MR ZYMAN TELEPHONED MR ROBBINS TO INFORM HIM OF THE DECISION IN A STATEMENT COCACOLA SAID LOWE WAS ALSO AWARDED ITS SPRITE ADVERTISING IN EUROPE AS WELL AS NORTH AMERICA WHERE LOWE HAD BEEN THE LEMONLIME BEVERAGE'S AGENCY OF RECORD MCCANN WILL HANDLE SPRITE ADS THROUGHOUT THE REST OF THE WORLD JWT HEALTHCARE A 40 MILLION UNIT OF WPP GROUP'S J WALTER THOMPSON IS SHIFTING TO ANOTHER WPP GROUP UNIT FERGUSON COMMUNICATIONS GROUP BASED IN PARSIPPANY NJ THE UNIT KNOWN AS DELTAKOS COUNTS AMONG ITS CLIENTS ELI LILLY EASTMAN KODAK MEDICAL PRODUCTS AND SEVERAL NABISCO BRANDS THAT ADVERTISE TO THE MEDICAL INDUSTRY THE SHIFT SEPARATES J WALTER THOMPSON FROM ELI LILLY THE MAKER OF PROZAC THE ANTIDEPRESSANT DRUG THAT RELATIONSHIP HAD BEEN STRAINED IN RECENT YEARS AFTER JWT'S SISTER PUBLICRELATIONS AGENCY HILL & KNOWLTON BRIEFLY REPRESENTED THE CHURCH OF SCIENTOLOGY WHICH VEHEMENTLY OPPOSES LILLY'S PROZAC DRUG THE SCIENTOLOGISTS HAVE SUBSEQUENTLY FILED SUIT AGAINST ELI LILLY WPP HILL & KNOWLTON AND J WALTER THOMPSON JOHN ZWEIG PRESIDENT OF FERGUSON COMMUNICATIONS SAID THE MOVE WASN'T RELATED TO THAT SITUATION ACCOUNT SHOWBIZ PIZZA TIME IRVING TEXAS TAPPED THE CHICAGO OFFICE OF WPP GROUP'S J WALTER THOMPSON TO CREATE ADS FOR THE CHUCK E CHEESE CHAIN OF PIZZA RESTAURANTS THE 15 MILLION ACCOUNT WAS PREVIOUSLY HANDLED BY THE IRVING OFFICE OF KELLER CRESCENT 9310060007 931006 CREDIT RATINGS MAXUS ENERGY CORP DALLAS THE OIL AND GAS CONCERN RECEIVED A LOWER SENIOR DEBT RATING FROM MOODY'S INVESTORS SERVICE INC WHICH DOWNGRADED THE DEBT TO SINGLEB1 FROM BA3 THE COMPANY'S PREFERRED STOCK SHELF REGISTRATION RATING WAS LOWERED TO PB3 FROM PB2 ABOUT 1 BILLION IN SECURITIES WERE AFFECTED MOODY'S SAID ITS DECISION WAS PROMPTED BY MAXUS' REJECTION OF BIDS IT RECEIVED FOR THE PROPOSED SALE OF ITS NORTHWEST JAVA PRODUCTION SHARING CONTRACT MAXUS SAID BIDS TO BUY ITS INTEREST WERE INADEQUATE BUT THE RATING AGENCY SAID THE REJECTION WILL LEAD TO HIGHER DEBT LEVELS 9310060006 931006 GAF UNIT SELLS SENIOR NOTES WAYNE NJ GAF CORP SAID ITS GI HOLDINGS INC UNIT COMPLETED A PRIVATE PLACEMENT OF ZEROCOUPON SENIOR NOTES TO INSTITUTIONAL BUYERS FOR GROSS PROCEEDS OF 400 MILLION THE NEW NOTES DUE 1998 WERE SOLD AT A DISCOUNTED ISSUE PRICE REPRESENTING A YIELD TO MATURITY OF 11125 GI HOLDINGS SAID IT WILL USE NET PROCEEDS TO REDEEM ALL OF ITS SUBORDINATED MERGER DEBENTURES OUTSTANDING DUE 2005 THE UNIT SAID IT WILL REDEEM THE MERGER DEBENTURES AT PAR PLUS INTEREST ON OCT 20 FOR A TOTAL REDEMPTION PRICE OF 101252 PER 1000 PRINCIPAL AMOUNT GAF MAKES SPECIALTY CHEMICALS AND BUILDING MATERIALS 9310060004 931006 CLINTON REPORT SAYS NAFTA IS GOOD FOR AUTO INDUSTRY WASHINGTON THE CLINTON ADMINISTRATION ISSUED THE FIRST OF 37 STUDIES ON THE IMPACT OF THE NORTH AMERICAN FREE TRADE AGREEMENT THIS ONE CONCLUDING TO NO ONE'S SURPRISE THAT NAFTA WILL BE GOOD FOR THE US AUTO INDUSTRY THE OTHER REPORTS AIMED LIKE THIS ONE AT HELPING TO GET CONGRESS TO APPROVE THE TRADE PACT THIS FALL ARE LIKELY TO SAY THAT NAFTA WILL BE GOOD FOR 36 OTHER SECTORS OFFICIALS ACKNOWLEDGE IF YESTERDAY'S REPORT IS A GUIDE THERE WILL BE LITTLE ORIGINAL ANALYSIS IN THE STUDIES MANY OF THE FINDINGS IN THE AUTO REPORT CAME FROM AN EARLIER ANALYSIS BY THE AUTO INDUSTRY IT SAID NAFTA WOULD PROVIDE THE OPPORTUNITY FOR INCREASED US AUTO EXPORTS OF ABOUT 2 BILLION IN 1994 WITH MORE GROWTH OVER THE LONG HAUL NEW SALES TO MEXICO WILL SUPPORT 15000 NEW AUTOMOTIVE JOBS IN THE US OFFICIALS SAID CITING THE AUTO REPORT THE REST OF THE COMMERCE DEPARTMENT STUDIES ARE GOING TO BE RELEASED OVER THE NEXT 15 DAYS EXAMINING THE EFFECT OF NAFTA ON INDUSTRIES SUCH AS ELECTRONICS COMPUTERS SEMICONDUCTORS AND CONSUMER GOODS ASKED IF ANY WILL SHOW A NET LOSS OF JOBS AN ADMINISTRATION OFFICIAL TOLD A BRIEFING THEY WOULDN'T HE LATER NOTED THAT THE REPORTS HAVEN'T BEEN FINISHED THE FLATGLASS INDUSTRY WHICH HAS ATTACKED NAFTA AS A JOB LOSER ISN'T BIG ENOUGH TO WARRANT ITS OWN STUDY OFFICIALS SAID BUT IT WILL GET MENTIONED IN ONE OF THE REPORTS ADMINISTRATION NAFTA CHIEF WILLIAM DALEY BRIEFED AUTO EXECUTIVES ABOUT NAFTA DEVELOPMENTS AT THE WHITE HOUSE YESTERDAY ASKED AFTERWARD ABOUT THE CREDIBILITY OF THE STUDY IN THE MIDST OF A CAMPAIGN FOR THE TRADE AGREEMENT MR DALEY SAID THE COMMERCE DEPARTMENT WOULD NEVER LIE 9310060003 931006 GETTING STARTED RECIPE FOR SUCCESSFUL INVESTING FIRST MIX ASSETS WELL BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FIRST THINGS FIRST IF YOU WANT DAZZLING INVESTMENT RESULTS DON'T START YOUR DAY FORAGING FOR HOT STOCKS AND STELLAR MUTUAL FUNDS INSTEAD SAY INVESTMENT ADVISERS THE REALLY CRITICAL DECISION IS HOW TO DIVVY UP YOUR MONEY AMONG STOCKS BONDS AND SUPERSAFE INVESTMENTS SUCH AS TREASURY BILLS IN WALL STREET LINGO THIS MIX OF INVESTMENTS IS CALLED YOUR ASSET ALLOCATION THE ASSETALLOCATION CHOICE IS THE FIRST AND MOST IMPORTANT DECISION SAYS WILLIAM DROMS A FINANCE PROFESSOR AT GEORGETOWN UNIVERSITY HOW MUCH YOU HAVE IN THE STOCK MARKET REALLY DRIVES YOUR RESULTS ACCORDING TO CHICAGO'S IBBOTSON ASSOCIATES STOCKS HAVE CLIMBED 103 A YEAR ON AVERAGE SINCE 1926 EASILY OUTPERFORMING BOTH INTERMEDIATETERM GOVERNMENT BONDS WITH THEIR 52 ANNUAL GAIN AND TREASURY BILLS WHICH RETURNED JUST 37 A YEAR THE OUTPERFORMANCE BY STOCKS MEANS THAT AN INVESTOR WHO BETS HEAVILY ON STOCKS WILL OVER THE LONG HAUL ALMOST ALWAYS DO BETTER THAN SOMEBODY WHO FAVORS BONDS AND TREASURY BILLS TBILLS ARE SHORTTERM GOVERNMENT SECURITIES WITH MATURITIES OF AS LONG AS ONE YEAR YOU CANNOT GET STOCK MARKET RETURNS FROM A BOND PORTFOLIO NO MATTER HOW GOOD YOUR SECURITY SELECTION IS OR HOW GOOD THE BOND MANAGERS YOU USE SAYS WILLIAM JOHN MIKUS A MANAGING DIRECTOR OF FINANCIAL DESIGN A LOS ANGELES INVESTMENT ADVISER FOR PROOF MR MIKUS CITES STUDIES SUCH AS THE 1991 ANALYSIS DONE BY GARY BRINSON BRIAN SINGER AND GILBERT BEEBOWER THAT STUDY WHICH LOOKED AT THE 10YEAR RESULTS FOR 82 LARGE PENSION PLANS FOUND THAT A PLAN'S ASSETALLOCATION POLICY EXPLAINED 915 OF THE RETURN EARNED BECAUSE YOUR ASSET MIX IS SO IMPORTANT SOME MUTUAL FUND COMPANIES NOW OFFER FREE SERVICES TO HELP INVESTORS DESIGN THEIR PORTFOLIOS DREYFUS CORP FIDELITY INVESTMENTS T ROWE PRICE ASSOCIATES AND STEINROE MUTUAL FUNDS WILL EITHER SUGGEST AN ASSET ALLOCATION IF YOU FILL OUT A QUESTIONNAIRE OR PROVIDE A WORKSHEET THAT ALLOWS YOU TO FIGURE OUT YOUR OWN MIX GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER A CHICAGO NEWSLETTER SAYS YOU SHOULD VARY YOUR MIX OF ASSETS DEPENDING ON HOW LONG YOU PLAN TO INVEST THE FURTHER YOU ARE FROM YOUR INVESTMENT GOAL THE MORE YOU SHOULD HAVE IN STOCKS THE CLOSER YOU GET THE MORE YOU SHOULD LEAN TOWARD BONDS AND MONEYMARKET INSTRUMENTS SUCH AS TREASURY BILLS BONDS AND MONEYMARKET INSTRUMENTS MAY GENERATE LOWER RETURNS THAN STOCKS BUT FOR THOSE WHO NEED MONEY IN THE NEAR FUTURE CONSERVATIVE INVESTMENTS MAKE MORE SENSE BECAUSE THERE'S LESS CHANCE OF SUFFERING A DEVASTATING SHORTTERM LOSS JONATHAN POND AUTHOR OF THE NEW CENTURY FAMILY MONEY BOOK SUGGESTS RETIREES AND THOSE SAVING FOR RETIREMENT USE THE FOLLOWING FORMULA SUBTRACT YOUR AGE FROM 100 WHATEVER THE RESULT PUT THAT PERCENTAGE OF YOUR PORTFOLIO INTO STOCKS FOR INSTANCE MR POND'S FORMULA MEANS THAT A 35YEAROLD SHOULD HAVE 65 OF HOLDINGS IN STOCKS WITH THE REST IN BONDS MR POND CONCEDES THAT HIS FORMULA MAY LEAD INVESTORS TO BE TOO CONSERVATIVE BUT BY TEMPERAMENT HE SAYS MOST INVESTORS WANT A MORE SEDATE PORTFOLIO SHOULD A 60YEAROLD BE ONLY 40 IN STOCKS SOMEBODY OF THAT AGE SHOULD PROBABLY BE AT LEAST 50 IN STOCKS BUT MANY 60YEAROLDS DON'T THINK THEY SHOULD BE IN STOCKS AT ALL WHEN LOOKING AT HOW YOUR ASSETS ARE ALLOCATED CONSIDER ALL YOUR INVESTMENTS INCLUDING BROKERAGE ACCOUNTS 401K MONEY INDIVIDUAL RETIREMENT ACCOUNTS AND CERTIFICATES OF DEPOSIT ONE OF THE MOST IMPORTANT THINGS PEOPLE CAN DO IS SUMMARIZE ALL THEIR ASSETS ON ONE PIECE OF PAPER AND FIGURE OUT THEIR ASSET ALLOCATION SAYS MR POND ONCE YOU'VE SETTLED ON A MIX OF STOCKS AND BONDS YOU SHOULD SEEK TO MAINTAIN THE TARGET PERCENTAGES SAYS MR POND TO DO THAT HE ADVISES FIGURING OUT YOUR ASSET ALLOCATION ONCE EVERY SIX MONTHS BECAUSE OF A STOCKMARKET PLUNGE YOU COULD FIND THAT STOCKS ARE NOW A FAR SMALLER PART OF YOUR PORTFOLIO THAN YOU ENVISAGED AT SUCH A TIME YOU SHOULD PUT MORE INTO STOCKS AND LIGHTEN UP ON BONDS WHILE FINANCIAL ADVISERS SAY SAVVY ASSET ALLOCATION IS CRITICAL TO INVESTMENT SUCCESS THEY'RE LEERY OF MOST OF WHAT ARE KNOWN AS ASSETALLOCATION MUTUAL FUNDS SUCH FUNDS USUALLY OWN A MIX OF STOCKS BONDS AND CASH BUT THEY FREQUENTLY CHANGE THE PERCENTAGES DEPENDING ON WHICH ASSET THEY DEEM MOST ATTRACTIVE THIS IS OFTEN KNOWN AS TACTICAL ASSET ALLOCATION MR DROMS THE GEORGETOWN PROFESSOR RECKONS TACTICAL ASSET ALLOCATION IS DISGUISED MARKET TIMING WHICH INVOLVES JUMPING IN AND OUT OF THE STOCK MARKET DEPENDING ON WHETHER YOU THINK SHARES WILL RISE OR FALL ALL THE STUDIES SHOW THAT MARKET TIMING DOESN'T WORK HE ADDS INDEED MOST ASSETALLOCATION FUNDS HAVE BEEN DISAPPOINTING PERFORMERS THE FUNDS HAVE RETURNED AN AVERAGE 737 DURING THE PAST FIVE YEARS ACCORDING TO LIPPER ANALYTICAL SERVICES THAT COMPARES WITH 798 FOR SOCALLED BALANCED FUNDS WHICH DON'T TRY TO TIME THE MARKET BUT INSTEAD TYPICALLY MAINTAIN A FIXED MIX OF 60 STOCKS AND 40 BONDS WHEN DEVISING PORTFOLIOS SOME INVESTMENT ADVISERS CONSIDER GOLD AND REAL ESTATE IN ADDITION TO THE USUAL TRIO OF STOCKS BONDS AND MONEYMARKET INSTRUMENTS GOLD AND REAL ESTATE GIVE YOU A HEDGE AGAINST HYPERINFLATION SAYS MR DROMS BUT REAL ESTATE IS BETTER THAN GOLD BECAUSE YOU'LL GET BETTER LONGRUN RETURNS MR DROM ADVISES PUTTING 10 OF A PORTFOLIO INTO REALESTATE SECURITIES IF THE ENTIRE PORTFOLIO IS WORTH MORE 1 MILLION FOR PEOPLE WITH SMALLER PORTFOLIOS HE SUGGESTS SKIPPING REAL ESTATE BECAUSE THESE INVESTORS PROBABLY HAVE SUFFICIENT EXPOSURE IF THEY OWN THEIR HOMES 9310060001 931006 WHO'S NEWS FIDELITY NEW YORK FIDELITY NEW YORK GARDEN CITY NY THOMAS V POWDERLY PRESIDENT AND CHIEF EXECUTIVE WAS ELECTED TO THE ADDITIONAL POST OF CHAIRMAN MR POWDERLY 56 YEARS OLD SUCCEEDS THOMAS DIXON LOVELY WHO RESIGNED 9310060080 930916 REVIEW & OUTLOOK EDITORIAL THE TOURIST MURDERS IT MAY NOT SEEM LIKE MUCH COMPARED WITH THE HUMAN TRAGEDY POSED BY THE LATEST MURDER OF EUROPEAN VISITORS BUT THERE IS SOMETHING NONETHELESS MOMENTOUS ABOUT THE STATE OF FLORIDA'S DECISION TO CEASE ALL ADVERTISING FOR TOURISTS SUCH A STEP AMOUNTS TO AN OFFICIAL ADMISSION THAT CRIMINALITY HAS GONE OUT OF CONTROL AND THAT THE STATE CAN NO LONGER PRETEND OTHERWISE WHY THIS IS SO IS NO MYSTERY TO ANYONE IN LAW ENFORCEMENT OR FOR THAT MATTER OUTSIDE IT AS JANET RENO'S FLORIDA SUCCESSOR STATE ATTORNEY KATHERINE FERNANDEZ RUNDLE SUCCINCTLY TOLD US CRIME PAYS SENTENCING MS RUNDLE GOES ON TO SAY IS A FRAUD PERPETRATED ON THE PUBLIC A 10YEAR SENTENCE SHE POINTS OUT GENERALLY MEANS A YEAR AND A HALF INCARCERATION IF THAT OFFICIAL ACKNOWLEDGMENT THAT CRIME HAS GONE OUT OF CONTROL BRINGS NO NEWS TO COMMUNITIES PLAGUED BY TERROR AND VIOLENCE BUT IT'S A STEP FORWARD NONETHELESS IT IS IF NOTHING ELSE AN IMPROVEMENT OVER THE SPECTACLE SEEN ON MORNING TV A WEEK AGO IN WHICH FLORIDA STATE OFFICIALS AND A HELPFUL MEMBER OF THE GERMAN CONSULATE INSISTED AFTER THE MURDER OF A 33YEAROLD GERMAN TOURIST THAT FLORIDA WAS QUITE SAFE TO VISIT FLORIDA IS NOT OF COURSE UNIQUE IN ITS LEVEL OF CRIME AND VIOLENCE NOR IS MIAMI THE MURDER CAPITAL OF THE NATION IT HARDLY NEEDS SAYING THAT THE REIGN OF HOMICIDE AND ANARCHY IN ITS STREETS AND HIGHWAYS SO DRAMATICALLY EXPOSED OVER THE PAST YEAR ARE ALSO TO BE FOUND IN LOS ANGELES WASHINGTON DC AND NEW YORK AMONG ALL TOO MANY OTHER PLACES WHAT PUT FLORIDA IN THE SPOTLIGHT THIS TIME WAS THE SPECIAL NATURE OF THE CRIMES AND VICTIMS VACATION VISITORS TO OUR SHORES WHO HAD FOUND INSTEAD OF A HAPPY TIME A BRUTAL DEATH HIGH PROFILE CRIMES WHICH IS WHAT THE MURDERS OF THE TOURISTS INSTANTLY BECAME ARE NOT ACCIDENTS OF REPORTING THEY BECOME HIGH PROFILE BECAUSE THERE IS SOMETHING IN THEIR NATURE THAT CUTS THROUGH THE ARMOR OF EVERYDAY FAMILIARITY WITH LAWLESSNESS AND ATROCITY THAT BRINGS THE HORROR HOME THEY CAN ALSO BE INSTRUCTIVE FOR INSTANCE ANY LOOK AT THE TOURIST MURDERS AND SIMILARLY NOTORIOUS INSTANCES OF VIOLENCE ELSEWHERE WILL REVEAL THAT THOSE MURDERS AND ATTACKS ARE ONLY PARTLY RELATED TO THE STEALING OF MONEY AND PROPERTY AND SOMETIMES WHOLLY UNRELATED ROBBERY WAS CLEARLY NOT THE MOTIVE IN THE 36 SHOOTING ASSAULTS IN 1982 ON MOTORISTS TRAVELING INTERSTATE 95 NEAR JACKSONVILLE THAT CAUSED ONE DEATH AND NUMEROUS ACCIDENTS THE AIM OF GETTING MONEY COULD CLEARLY NOT HAVE BEEN THE REASON THAT THE KILLERS SHOT TOURISTS FROM GERMANY AND ENGLAND TRYING TO DRIVE AWAY FROM THEM A WOMAN WHO SURVIVED AN ASSAULT IN FLORIDA WENT ON GOOD MORNING AMERICA TO TELL HOW SHE AND HER MOTHER WERE TRAPPED BY TWO ASSAILANTS WHO SURROUNDED THEIR CAR AND SMASHED THE WINDOWS THE WOMEN SAID TAKE WHAT YOU WANT THE ANSWER WE'RE GOING TO KILL YOU SOMEHOW THE WOMEN ESCAPED THE ATMOSPHERE OF NIHILISM AND THE WILL TO INFLICT VIOLENCE IS EVERYWHERE EVIDENT IN THE TOURIST ASSAULTS AND COUNTLESS OTHER LESS PUBLIC ONES IT IS WHAT HAS GIVEN RISE TO THE TERM SENSELESS CRIME WHOSE CONSTANT USE BETRAYS SOCIETY'S NEED TO FIND A SATISFACTORY REASON SUCH AS ROBBERY FOR GAIN TO RATIONALIZE ALL THE KILLINGS AND ASSAULTS IT IS CLEARLY HARD TO ACCEPT THAT A NEW CRIMINAL CULTURE EXISTS FOR WHOM TERRORIZATION AND DESTRUCTION ARE ENDS IN THEMSELVES THE MOSTLY YOUNG CRIMINALS WHO CONSTITUTE THIS CULTURE AROUND THE NATION HAVE CHARACTERISTICALLY HAD A LONG HISTORY WITHIN THE SOCALLED JUVENILE JUSTICE SYSTEM IN FLORIDA THE LEGAL TREATMENT AND MONITORING OF JUVENILE OFFENDERS FALLS LARGELY TO A VAST BUREAUCRACY CALLED THE DEPARTMENT OF HEALTH AND REHABILITATIVE SERVICES MOST OTHER STATES HAVE SIMILAR ARRANGEMENTS ALL OF THEM FAILED EFFORTS TO DEAL WITH THE HARD REALITY OF JUVENILE CRIME THE CURRENT ATTORNEY GENERAL OF THE UNITED STATES AND FORMER STATE ATTORNEY FOR DADE COUNTY JANET RENO HAS MUCH TO SAY ABOUT THE ROOT CAUSES OF CRIME AND HOW MUCH MORE IMPORTANT IT IS TO GET AT THOSE CAUSES THAN TO IMPRISON YOUNG OFFENDERS THERE ARE INDEED ROOT CAUSES OF CRIME ONE OF THEM IS THE NOWOBVIOUS BREAKDOWN OF THE FAMILY ANOTHER IS THE CONVICTION THAT CRIME WILL GO UNPUNISHED OR BARELY PUNISHED THIS IS A WELLFOUNDED BELIEF THANKS TO A LEGAL SYSTEM FOUNDED ON PROGRESSIVE IDEOLOGY WHICH ENSURES THAT EVEN VIOLENT YOUNG OFFENDERS ESCAPE MEANINGFUL CONSEQUENCES THE FRUITS OF THIS SYSTEM ARE TO BE SEEN EVERYWHERE IN THE SOCALLED SENSELESS CRIMES COMMITTED BY GRADUATES OF THE SYSTEM FLORIDA IT APPEARS IS NOW ATTEMPTING TO REFORM ITS JUVENILE JUSTICE SYSTEM THIS IS GOOD NEWS STATES AROUND THE NATION MIGHT FURTHERMORE CONSIDER FOLLOWING FLORIDA'S LEAD AND ADMIT THAT CRIME IS OUT OF CONTROL SUCH FRANKNESS COULD BE THE BEGINNING OF A NEW ERA OF HONESTY AND SANITY SEE RELATED LETTERS LETTERS TO THE EDITOR DEEP PURPLE RAGE WSJ OCT 6 1993 9309160123 YY93 MM10 9310060079 930916 CALLING ALL BARNEY BASHERS BY THOMAS E DOYLE BARNEY IS A PURPLE DINOSAUR FROM OUR IMAGINATION ANYONE WITH KIDS UNDER SIX YEARS OF AGE KNOWS THIS FOR THOSE OF YOU WITH LESS VIVID IMAGINATIONS LET ME EXPLAIN THAT BARNEY IS A 6FOOT2INCH MAN IN A PURPLE DINOSAUR'S COSTUME HE JUMPS AROUND WITH A GROUP OF SUBURBAN KIDS HIS BACKYARD GANG IN A SERIES OF HUGELY POPULAR VIDEOS AND TV SHOWS THE PRIVATELY OWNED BONANZA OF THE LYONS GROUP IN ALLEN TEXAS WAS CREATED TO HELP KIDS CELEBRATE CHILDHOOD AND UNDERSTAND THE COMPLICATED BUSINESS OF GROWING UP AND BARNEY'S BECOME AS CELEBRATED AS BIG BIRD I EVEN SAW HIM ON A FLASHLIGHT AT THE CHECKOUT COUNTER AT MY LOCAL HARDWARE STORE LET ME NOT MINCE WORDS BARNEY REPRESENTS A LOT THAT IS WRONG WITH AMERICA MY TWOYEAROLD DAUGHTER PAIGE HAS BARNEY TAPES BARNEY SOCKS BARNEY BOOKS BARNEY UNDERWEAR BARNEY NIGHTGOWNS THE FLASHLIGHT BARNEY DOLLS PLASTIC AND FLUFFY AND OTHER BARNEY GIMCRACKS ANNUAL SALES FOR THESE AND MANY OTHER ITEMS ARE ESTIMATED TO BE WELL OVER 200 MILLION I CAN'T GO TO A STORE WITHOUT SEEING THAT PURPLE CREATURE BECKONING FOR MY DAUGHTER'S AFFECTION AND EVER MORE OF MY MONEY AND I CAN'T TAKE IT ANYMORE WHERE WILL THIS END I HAVE THIS HORRIBLE NIGHTMARE IN WHICH THERE ARE BARNEY DIAPHRAGMS ADVERTISED IN TEEN MAGAZINE I SEE A 14YEAROLD SUBURBAN GIRL COOING IN BARNEYLIKE FASHION TO HER HIPHOP BOYFRIEND I LOVE YOU YOU LOVE ME BUT WE'RE NOT READY FOR A FAMILY ANOTHER REASON TO HATE BARNEY IS THAT HE'S OH SO POLITICALLY CORRECT ONE OF HIS BIG THEMES IS MAKING SURE THAT KIDS UNDERSTAND THAT A CLEAN ENVIRONMENT IS A GOOD IDEA GRANTED A CLEAN ENVIRONMENT ISN'T A BAD IDEA BUT THE FACT THAT A PRODUCT GEARED TO TODDLERS CONTAINS SUCH AN OBVIOUSLY PC MESSAGE AS THIS IS DISINGENUOUS AT BEST MY DAUGHTER CAN'T SPELL ENVIRONMENT DOESN'T KNOW WHAT AN ENVIRONMENT IS AND COULDN'T PICK OUT AN ENVIRONMENT FROM AN AIR CONDITIONER IF A FREE WEEK AT DISNEYLAND WITH BARNEY WAS AT STAKE REALLY WANT TO CLEAN UP THE ENVIRONMENT GARNISHEE BARNEY'S WAGES AND DISTRIBUTE THEM TO CITY SANITATION DEPARTMENTS TO CONTINUE THE PC MESSAGE WE SHOULD EXPECT TO SEE BARNEY CONDOMS BARNEY DOLLS WITH LITTLE RED RIBBONS MAYBE EVEN A HOMELESS BARNEY DOLL I CAN WATCH THINGS LIKE SESAME STREET OR EVEN THE OLD CARTOONS WHERE THE MESSAGE IS PLAYED OUT ON A COUPLE OF LEVELS IT'S LIKE READING THE ADVENTURES OF HUCKLEBERRY FINN THE KIDS THINK IT'S A STORY ABOUT A BOY ON A RAFT BUT THE ADULTS GLEAN MUCH MORE BARNEY SHOWS HOWEVER ARE PLAYED OUT ON ONLY ONE VERY LOW LEVEL I DON'T THINK IT'S POSSIBLE TO SINK LOWER WE'RE TURNING OUT A NATION OF CULTURAL MORONS STARTING AT AGE TWO WHAT HAPPENED TO THE IDEA THAT KIDS' ENTERTAINMENT CAN BE ADULTS' ENTERTAINMENT WHO PUTS THE TAPE IN THE VCR AND ALSO ENDS UP WATCHING WHO TAKES THE KIDS TO THE MOVIES WHO WATCHES THE CARTOONS FROM BEHIND THE NEWSPAPER BARNEY COULD NEVER HAVE HAPPENED WITHOUT THE VCR BARNEY'S SUCCESS STEMS FROM THE ABILITY OF TWOYEAROLDS TO PLAY HIS TAPES OVER AND OVER AGAIN SO THAT BARNEYINDOCTRINATING SONGS ANCHOR THEMSELVES INTO THEIR MINDS FOR THAT MATTER THE VCR IS TURNING ALL OF US INTO COUCH POTATOES OF IDAHOAN PROPORTIONS IT ENCOURAGES A NUMBER OF TERRIBLE TRAITS MOSTLY IT ALLOWS FOR INSTANT GRATIFICATION YOU WANT TO WATCH SOMETHING NOW NO PROBLEM JUST POP IN THAT TAPE HOW WILL WE EVER TEACH KIDS THE VIRTUE OF PATIENCE WHEN BARNEYLIKE GRATIFICATION IS JUST A REMOTECONTROL BUTTON AWAY I'M NOT CALLING FOR A FEDERAL INVESTIGATION OF BARNEY I'M SIMPLY ASKING ADULTS TO THINK TWICE BEFORE THEY LET THEIR CHILDREN BECOME ACOLYTES TO THE CULT OF BARNEY KIDS AND ADULTS NEED INTELLECTUAL STIMULATION AND TO ENTERTAIN THEMSELVES AND EACH OTHER IN MEASURED DOSES THE CULT OF BARNEY DOESN'T PROVIDE THAT MR DOYLE IS A SOFTWARE CONSULTANT IN NEW YORK CITY SEE RELATED LETTERS LETTERS TO THE EDITOR DEEP PURPLE RAGE WSJ OCT 6 1993 9309160182 YY93 MM10 9310050189 931005 QUARTERLY MUTUAL FUNDS REVIEW TAX EFFICIENT' HAS NEW CACHET FOR AFFLUENT INVESTORS BY MICHAEL A POLLOCK SPECIAL TO THE WALL STREET JOURNAL NEW YORK COULD ANY LABEL MATTER MORE TO UPPERINCOME INVESTORS THESE DAYS THAN TAX EXEMPT SOME MUTUAL FUND ANALYSTS THINK SO THE BUZZPHRASE FOR THE HIGHTAX 1990S WILL BE TAX EFFICIENT THESE ANALYSTS ARGUE IT COULD ALTER THE WAY ALL TYPES OF FUNDS ARE MANAGED MEASURED AND MARKETED THE FAMILIAR TAXEXEMPT FUNDS OF COURSE BUY STATE AND LOCAL GOVERNMENT DEBT OBLIGATIONS INVESTORS REAP THE INCOME FREE FROM FEDERAL TAX AND AVOID STATE INCOME TAXES AS WELL WHEN THEY BUY A HOMESTATE MUNI FUND BUT EVEN MUNI FUNDS ARE SUBJECT TO CAPITALGAINS TAXES WHEN BONDS ARE SOLD THE NOTION OF TAX EFFICIENCY COULD APPLY TO MANY TYPES OF FUNDS THE KEY IS PORTFOLIO MANAGEMENT THAT SEEKS TO BOOST AFTERTAX RATHER THAN PRETAX RETURNS FOR EXAMPLE BY LIMITING CAPITALGAINS DISTRIBUTIONS SOME FUNDS SUCH AS VANGUARD INDEX 500 AND LEXINGTON CORPORATE LEADERS ARE NATURALLY MORE TAX EFFICIENT THESE SOCALLED INDEX FUNDS ASSEMBLE PORTFOLIOS THAT MIMIC THE WEIGHTINGS OF STOCK INDEXES SUCH AS THE STANDARD & POOR'S 500STOCK INDEX THEY RARELY ADJUST THEIR PORTFOLIOS AND THEIR BUYANDHOLD STRATEGIES SPUR FEW CAPITAL GAINS NOW A GROWING NUMBER OF FUNDS ARE STRIVING TO BE ULTRA TAX EFFICIENT JUST ABOUT GUARANTEEING NO INCOME OR CAPITAL GAINS DISTRIBUTIONS TWO FUNDS THE SCHWAB 1000 AND COLONIAL TAX EXEMPT FUNDS REGULARLY TAKE CAPITAL LOSSES TO OFFSET CAPITAL GAINS TAXEFFICIENT FUNDS WILL MEET WITH GROWING DEMAND FROM INVESTORS PREDICTS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER THE DOUBLEDIGIT RETURNS YOU COULD GET IN THE 1980S MASKED BAD INVESTMENT MOVES HE SAYS BUT IN THE 1990S YOU'VE GOT TO ENHANCE RETURNS ANY WAY POSSIBLE YOU HAVE TO BE MORE TAX SMART TAX EFFICIENCY CAN MAKE A BIG DIFFERENCE STUDYING THE PERFORMANCE OF 150 FUNDS OVER THE PAST THREE DECADES STANFORD UNIVERSITY ECONOMISTS JOEL DICKSON AND JOHN SHOVEN FOUND THAT FUNDS OFTEN LOOK FAR LESS IMPRESSIVE ON AN AFTERTAX BASIS EVEN THE RELATIVELY TAXEFFICIENT VANGUARD INDEX 500 FUND COULD HAVE DONE BETTER BY BEING MORE TAX CONSCIOUS THEY CONTEND ITS AVERAGE YEARLY RETURN OVER THAT PERIOD WAS NEARLY THREE PERCENTAGE POINTS LESS WHEN ADJUSTED FOR TAXES THE THREEYEAROLD SCHWAB 1000 FUND WITH ASSETS OF ABOUT 550 MILLION TAKES TAX EFFICIENCY TO HEART ITS PORTFOLIO IS BASED ON SCHWAB'S INDEX OF THE 1000 LARGEST US COMPANIES ACCORDING TO MARKET CAPITALIZATION THE FUND RARELY TRADES LAST YEAR TURNOVER WAS 105 OF FUND ASSETS BUT UNLIKE MANY INDEX FUNDS SCHWAB 1000 ALSO DELIBERATELY TAKES CAPITAL LOSSES TO OFFSET ANY GAINS WHICH RESULT MOSTLY WHEN THE FUND SELLS SHARES OF COMPANIES DROPPED FROM SCHWAB'S INDEX THE 1000 FUND'S POPULARITY LED THE DISCOUNT BROKERAGE FIRM IN AUGUST TO LAUNCH A SIMILAR FUND BASED ON THE 350 LARGEST INTERNATIONAL COMPANIES IN TERMS OF MARKET SIZE TAX EFFICIENCY ALSO MAY BOOST RETURNS OF TAXEXEMPT FUNDS COLONIAL TAX EXEMPT FUND WITH 37 BILLION IN ASSETS LIMITS TURNOVER AND SELLS IN DOWN MARKETS TO BOOK LOSSES PORTFOLIO MANAGER JEFF AUGUSTINE POINTS OUT THAT THE FUND HASN'T PAID A MATERIAL QUARTERLY TAXABLE DISTRIBUTION SINCE LATE 1986 FUNDS MAY ADOPT A BROADER RANGE OF STRATEGIES TO LIMIT THE EFFECT OF TAXES SOME ANALYSTS BELIEVE FIDELITY INVESTMENTS HAS UNVEILED A NEW FUND SPARTAN BOND STRATEGIST THAT WILL INVEST IN BOTH TAXABLE AND TAXEXEMPT BONDS IT WILL USE SOPHISTICATED COMPUTER ANALYSIS TO ADJUST ITS PORTFOLIO MIX AIMING TO BOOST AFTERTAX RETURN RATHER THAN YIELD MANY OLDER FUNDS ALSO MAY BE TAX EFFICIENT BECAUSE THEY HAVE BUILT UP CAPITAL LOSSES IN THEIR PORTFOLIOS THESE LOSSES OFFSET THE GAINS THAT THEY WOULD OTHERWISE PAY OUT TO INVESTORS SPARING THEIR SHAREHOLDERS THE TAXES DUE ON SUCH PAYOUTS 9310050188 931005 WHO'S NEWS BF GOODRICH CO BF GOODRICH CO AKRON OHIO DAVID L BURNER 54 YEARS OLD WAS NAMED AN EXECUTIVE VICE PRESIDENT OF THIS AIRCRAFT SYSTEMS PARTS AND SERVICES AND SPECIALTYCHEMICAL CONCERN HE CURRENTLY IS A SENIOR VICE PRESIDENT AND PRESIDENT OF THE BF GOODRICH AEROSPACE UNIT 9310050187 931005 NORTHROP GETS NAVY CONTRACT LOS ANGELES NORTHROP CORP SAID IT WAS AWARDED A 658 MILLION CONTRACT BY THE US NAVY FOR AERIAL TARGETS USED TO TRAIN AIR AND MISSILE CREWS 9310050186 931005 LEISURE & ARTS TOP 10 SINGLES / ALBUMS COMPILED BY BILLBOARD MAGAZINE FROM DATA PROVIDED BY BROADCAST DATA SYSTEMS AND SOUNDSCAN INC AND BASED ON A NATIONAL SAMPLE OF RETAIL REPORTS AND RADIO PLAY LISTS 9310050185 931005 QUARTERLY MUTUAL FUNDS REVIEW US OR OVERSEAS MANAGERS BICKER OVER BEST HOME FOR ASSETS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL ONE OF THE BIGGEST DECISIONS INVESTORS FACE IS HOW TO SPLIT UP THEIR MONEY BETWEEN THEIR HOME COUNTRY AND THOSE TANTALIZING MARKETS ABROAD RIGHT NOW MANAGERS OF BIG MUTUAL FUNDS DIFFER SHARPLY BULLS ON THE US MARKET ARE SAYING IT'S MORNING IN AMERICA I BELIEVE THIS IS THE MOST POSITIVE TIME EVER FOR THE US MARKET SAYS RUSSELL THOMPSON MANAGER OF THE 28 BILLION UNITED INCOME FUND IN OVERLAND PARK KAN THE US HE SAYS IS IN MUCH BETTER SHAPE THAN ITS MAJOR ECONOMIC COMPETITORS JAPAN AND GERMANY JAPAN HAS AN AGING AND DECLINING POPULATION MR THOMPSON SAYS THEY DON'T FEED THEMSELVES THEY DON'T FUEL THEMSELVES THEY ARE NOT THEIR OWN END MARKET AMONG OTHER FINANCIAL PROBLEMS JAPANESE REAL ESTATE IS STILL OVERVALUED AND DECLINING SO THE JAPANESE HAVE SOME DIFFICULTY TO GET THROUGH FOR A LONG PERIOD OF TIME HE SAYS GERMANY MR THOMPSON SAYS HAS PEOPLE THAT WANT TO WORK 35 HOURS A WEEK AND GET 70 DAYS OFF AND GET HIGH PAY AND THE BUNDESBANK IS WORRIED ABOUT INFLATION BECAUSE THEY'VE ASSIMILATED THE EAST GERMANS SO HE FIGURES GERMANY'S CENTRAL BANK WON'T LOWER INTEREST RATES ENOUGH TO STIMULATE THE GERMAN ECONOMY MUCH IN THE US BY CONTRAST MR THOMPSON SEES AN IMPROVED SITUATION WITH THE ECONOMY RECOVERING CORPORATE COSTS IN CHECK AND PRICE INFLATION UNDER CONTROL WE FEED OURSELVES HE SAYS WITH SOUTH AMERICA WE FUEL OURSELVES AND WE HAVE THE MOST STABLE GOVERNMENT WHETHER THE NORTH AMERICAN FREE TRADE AGREEMENT PASSES OR NOT HE SEES ENORMOUS EXPORTING OPPORTUNITIES FOR THE US IN MEXICO AND SOUTH AMERICA I BELIEVE US COMPANIES WILL DO EXTREMELY WELL AS WE GO FORWARD MR THOMPSON CONCLUDES BUT SOME MONEY MANAGERS SEE IT DIFFERENTLY MARK HOLOWESKO WHO MANAGES THE TEMPLETON WORLD FUND FROM OFFICES IN THE BAHAMAS SAYS HIS FUND HAD 60 OF ITS MONEY IN THE US TWO YEARS AGO BUT HAS SLICED THAT BACK TO 30 THE US MARKET HAS PERFORMED VERY WELL FOR SEVERAL YEARS MR HOLOWESKO SAYS AT THIS POINT HE SAYS MY OVERALL FEELING IS THAT THE US MARKET IS EXPENSIVE THOUGH HE STILL LIKES CERTAIN SECTORS HE IS DIRECTING MOST NEW PURCHASES TOWARD EUROPE WHERE HE SAYS STOCKS ARE CHEAPER AND PROFITS CAN SURGE AS EUROPEAN COUNTRIES EMERGE FROM THEIR RECESSIONS AT T ROWE PRICE INTERNATIONAL FUND THE INVESTMENT CHARTER CALLS FOR NONUS INVESTMENTS ONLY BUT EVEN IF HE WEREN'T UNDER ANY RESTRICTION COMANAGER DAVID WARREN SAYS HE WOULD PUT A GOOD DEAL OF MONEY OUTSIDE THE US THE US MARKET HAS ALREADY BUILT IN AN EXPECTATION OF ECONOMIC RECOVERY HE SAYS THAT HASN'T YET HAPPENED IN EUROPE OR JAPAN IN A VERY GENERAL SENSE THERE'S MORE TO GO FOR IN INTERNATIONAL VANGUARD/WELLINGTON FUND THIS HUGE FUND HAS ABOUT 8 OF ITS PORTFOLIO IN FOREIGN SECURITIES BUT VINCENT BAJAKIAN MANAGER SINCE 1979 SAYS THAT FIGURE UNDERSTATES HIS FOREIGN EXPOSURE MANY OF OUR US STOCKS ARE GLOBAL COMPANIES HE SAYS WELLINGTON ALWAYS HOLDS 60 TO 70 STOCKS AND 30 TO 40 BONDS THOSE TIGHT BANDS ARE USEFUL MR BAJAKIAN SAYS BECAUSE THEY FORCE HIM TO SELL SOME OF AN INVESTMENT WHEN IT RISES AND BUY WHEN IT FALLS FOR EXAMPLE BONDS SOARED WHEN THE STOCK MARKET CRASHED IN 1987 MR BAJAKIAN SOLD BONDS AND BOUGHT STOCKS A WISE MOVE AS IT TURNED OUT THE BOSTONBASED MANAGER EXPECTS THE US ECONOMY TO BOUNCE BACK MORE STRONGLY THAN MOST PEOPLE THINK IT WILL SO HE IS MAKING A BIG BET ON CYCLICAL STOCKS SUCH AS ALUMINUM CO OF AMERICA DOW CHEMICAL GENERAL ELECTRIC AND FORD MOTOR IF HE'S RIGHT ABOUT A SURGE IN THE ECONOMY IT WOULD ALSO MEAN A JUMP IN ENERGY USE HE HOLDS A RAFT OF ENERGY STOCKS INCLUDING EXXON MOBIL TEXACO KERRMCGEE AND AMERADA HESS IN THE US AND TOTAL SA SOCIETE NATIONALE ELF AQUITAINE AND NORSK HYDRO ABROAD MR BAJAKIAN ALSO IS PARTIAL TO BANK STOCKS THAT HE CONSIDERS BARGAINPRICED SUCH AS NORWEST BANC ONE AND BANK OF NEW YORK AND HE IS BOTTOMFISHING IN BATTERED HEALTHCARE ISSUES SUCH AS JOHNSON & JOHNSON PFIZER AND ABBOTT LABORATORIES FIDELITY CONTRAFUND STOCK PICKING IN MY OPINION IS NOT ROCKETSCIENTIST STUFF SAYS WILL DANOFF MANAGER OF FIDELITY CONTRAFUND IN BOSTON WE'RE ALWAYS LOOKING FOR COMPANIES THAT ARE EXPERIENCING ACCELERATING EARNINGS IF YOU BOUGHT HOME DEPOT IN AUGUST 1987 A MARKET PEAK JUST BEFORE THE 1987 CRASH YOU'D STILL HAVE MADE A 10FOLD INCREASE ALTHOUGH HIS FUND'S NAME ORIGINALLY REFERRED TO A CONTRARIAN INVESTING STYLE MR DANOFF IS A GROWTH MANAGER TODAY ONE OF HIS FAVORITE NICHES IS RADIO STOCKS NEW RULES ALLOW A COMPANY TO OWN TWO AM AND TWO FM RADIO STATIONS IN A METROPOLITAN AREA INSTEAD OF JUST ONE OF EACH MR DANOFF FIGURES THE CHANGE WILL ALLOW FOR ECONOMIES OF SCALE AND CROSSSELLING OF ADVERTISING HELPING STATIONS THAT WERE ALREADY PROFITABLE BECOME MORE SO HE HAS TUNED HIS PORTFOLIO DIAL TO INFINITY BROADCASTING AND SAGA COMMUNICATIONS NATURALGAS STOCKS ARE POPULAR BUT MR DANOFF HAS A TWIST HE PLAYS THE CANADIAN GAS COMPANIES WHICH HAVE RAPIDLY INCREASING PRODUCTION AND CHEAP ACCESS TO GOVERNMENT LAND TO DRILL ON RENAISSANCE ENERGY AND CANADIAN NATURAL RESOURCES ARE TWO OF HIS FAVORITES OVERALL HIS FOREIGN HOLDINGS AREN'T BIG ABOUT 4 IN CANADA AND 3 IN JAPAN WHERE HE BOUGHT BEATENDOWN BROKERAGE STOCKS ONE ADVANTAGE IN WORKING FOR FIDELITY HE SAYS IS ITS ACCESS TO CORPORATE MANAGEMENTS THAT ADVANTAGE DOESN'T APPLY WITH FOREIGN STOCKS TEMPLETON WORLD FUND WHILE HE FINDS THE US STOCK MARKET EXPENSIVE FOR HIS TASTE MR HOLOWESKO STILL SEES BARGAINS IN THE INDUSTRIAL SECTOR IN ALUMINUM PAPER AND AEROSPACE THE US IS THE WORLD'S LOWESTCOST PRODUCER HE SAYS SO HE'S DRAWN TO STOCKS SUCH AS REYNOLDS METALS ALUMINUM CO OF AMERICA INTERNATIONAL PAPER JAMES RIVER AND BOEING ALUMINUM IS A SPECIAL FAVORITE THE AVERAGE CAR TODAY HAS ABOUT 150 POUNDS OF ALUMINUM MR HOLOWESKO SAYS BUT HE THINKS THAT FIGURE WILL RISE TO ABOUT 400 POUNDS BY THE END OF THE DECADE EUROPEANS USE ONLY ABOUT 35 ALUMINUM CANS A YEAR AMERICANS USE ABOUT 400 SALES OF RUSSIAN ALUMINUM HAVE DEPRESSED WORLD PRICES HE SAYS BUT THE RUSSIAN ALUMINUM INDUSTRY WILL HAVE TO CHANGE AS ITS FACTORIES START TO PAY A MARKET PRICE FOR ELECTRICITY PREVIOUSLY PROVIDED FREE IN EUROPE SHIPPING IS ONE OF HIS FAVORITE AREAS IN THE 1970S THERE WAS TOO MUCH SHIPBUILDING HE SAYS WE HAVE LOW GLOBAL SHIPPING RATES WHICH DO NOT JUSTIFY BUILDING NEW SHIPS TO THE MOMENT BUT THE WORLD'S FLEET IS AGING THE TYPICAL SHIP IS NOW ABOUT 15 YEARS OLD AND 20 YEARS IS THE AVERAGE LIFE OF A SHIP HE SAYS US LEGISLATION REQUIRING DOUBLEHULLED OIL TANKERS AND THE WORLD'S INCREASING RELIANCE ON OIL FROM THE MIDDLE EAST ALSO CONVINCE HIM THAT SHIPPING STOCKS ARE ATTRACTIVE HE OWNS BERGESEN GROUP AND STOLT TANKERS UNITED INCOME FUND MR THOMPSON IS ANOTHER PERSON WHOSE FUND'S NAME PROVIDES AN IMPERFECT CLUE AS TO WHAT HE'S UP TO CAPITAL APPRECIATION IS HIS PRIMARY GOAL HE SAYS INCOME IS SECONDARY HIS BIGGEST BET TODAY IS ON A STRONG ECONOMIC RECOVERY HE IS BETTING THE FARM ON CYCLICAL STOCKS ESPECIALLY AUTO AND AUTOPARTS STOCKS SUCH AS CHRYSLER FORD EATON AND DANA MR THOMPSON IS ALREADY SITTING ON HUGE GAINS IN ONE MILLION SHARES OF CHRYSLER AND NICE GAINS ON HALF A MILLION SHARES OF FORD BUT HE THINKS THE AUTO STOCKS STILL HAVE ROOM TO ROLL WE HAVEN'T EVEN GOT TO WHERE THE ECONOMY PICKS UP AND AUTO MAKERS' COST CONTROLS HAVE IMPROVED GREATLY FROM CURRENT LEVELS GENERAL MOTORS HAS THE MOST POTENTIAL HE SAYS IT HAS GONE UP THE LEAST HE IS IMPRESSED BY GM'S CHIEF EXECUTIVE OFFICER JACK SMITH AND THINKS MR SMITH WILL MANAGE TO IMPROVE GM'S PREVIOUSLY ADVERSARIAL RELATIONSHIP WITH THE UNITED AUTO WORKERS OTHER BIG HOLDINGS FOR MR THOMPSON INCLUDE CATERPILLAR AND DEERE HE IS AVOIDING MEDICAL STOCKS AT LEAST UNTIL THE SMOKE CLEARS ON THE CLINTON HEALTH PLAN UTILITIES TOO MUCH REGULATION ALCOHOL SHARES SPREADING SOBRIETY TESTS WILL MEAN LESS DRINKING HE BELIEVES AND TOBACCO SHARES I JUST THINK THEY'RE IN A SECULAR DECLINE FOREVER T ROWE PRICE INTERNATIONAL STOCK FUND COMANAGER DAVID WARREN IS EMPHASIZING SOUTHEAST ASIA AND EUROPE WITH A LITTLE BIT OF LATIN AMERICA THROWN IN THE APPEAL OF SOUTHEAST ASIA IS PELLMELL ECONOMIC GROWTH FAR BEYOND A THING SEEN IN THE INDUSTRIAL DEMOCRACIES OF EUROPE AND THE US MR WARREN SAYS TELECOMMUNICATIONS IS A TREMENDOUS NEED IN A LOT OF THE DEVELOPING WORLD HE ADDS ONE OF HIS FAVORITE TELECOMMUNICATIONS STOCKS IS ADVANCE INFORMATION IN THAILAND IN THE SOUTHEAST ASIAN BOOM ADVERTISING ALSO IS GROWING FAST SO MR WARREN LIKES MEDIA PROPERTIES SUCH AS SINGAPORE PRESS HOLDINGS IN SINGAPORE AND NEW STRAITS TIMES PRESS IN MALAYSIA HE ALSO FAVORS INFRASTRUCTURE PLAYS SUCH AS MALAYSIA'S UNITED ENGINEERS EUROPE IS A WHOLE DIFFERENT BALL GAME THERE THE FUND IS TRYING TO SCOOP UP STOCKS THAT ARE CHEAP CONSIDERING THEIR GROWTH RATE ONE IS REED ELSEVIER THE FUND'S ANALYSTS EXPECT EARNINGS AT THE NETHERLANDSBASED PUBLISHING COMPANY TO GROW AT A 25 RATE THE NEXT TWO YEARS BUT THE STOCK SELLS FOR ONLY 15 TIMES ESTIMATED 1994 EARNINGS UNION BANK OF SWITZERLAND AND KINGFISHER A BRITISH RETAILER ARE AMONG THE FUND'S BIGGER EUROPEAN HOLDINGS IN LATIN AMERICA THE FUND CHOOSES THE LARGER MORE LIQUID STOCKS SUCH AS TELEFONOS DE MEXICO TELEFONOS DE CHILE AND THE ARGENTINE OIL COMPANY YPF 9310050184 931005 WHO'S NEWS OCEANEERING INTERNATIONAL INC OCEANEERING INTERNATIONAL INC HOUSTON T JAY COLLINS WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS OIL SERVICE COMPANY MR COLLINS 47 YEARS OLD WAS MOST RECENTLY EXECUTIVE VICE PRESIDENT FINANCE AND ADMINISTRATION OF TELECO OILFIELD SERVICES INC OF MERIDEN CONN HE SUCCEEDS THOMAS R HIX WHO LEFT THE COMPANY TO PURSUE OTHER OPPORTUNITIES 9310050183 931005 CHRYSLER GETS INVESTMENTGRADE RATING FROM S&P AND COULD LIFT ITS DIVIDEND BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH CHRYSLER CORP REGAINED ITS INVESTMENTGRADE DEBT RATING FROM STANDARD & POOR'S CORP RAISING THE LIKELIHOOD THAT THE AUTO MAKER WILL BOOST ITS DIVIDEND FOR THE FIRST TIME SINCE HALVING IT IN 1991 A CHRYSLER SPOKESWOMAN SAID THAT WOULD BE UP TO THE BOARD BUT RONALD A GLANTZ AN AUTOINDUSTRY ANALYST FOR DEAN WITTER DISCOVER & CO FOR ONE IS PREDICTING THAT AT ITS DECEMBER MEETING THE BOARD WILL BOOST THE DIVIDEND TO 20 CENTS QUARTERLY FROM 15 CENTS CHRYSLER'S LAST DIVIDEND INCREASE CAME IN 1989 ROBERT J EATON CHAIRMAN AND CHIEF EXECUTIVE OF CHRYSLER SAID AT THE AUTO MAKER'S ANNUAL MEETING IN MAY THAT AN INVESTMENTGRADE CREDIT RATING WAS SOMEWHAT OF A PREREQUISITE TO A DIVIDEND INCREASE SEPARATELY AS IF TO UNDERSCORE ITS NEWFOUND MOMENTUM CHRYSLER DISCLOSED THAT IT IS ACCELERATING THE PRODUCTION LAUNCH OF ITS NEW SUBCOMPACT THE NEON AND A SPOKESMAN SAID THE COMPANY ALREADY HAS RECEIVED DEALER ORDERS FOR NEARLY 40 OF THIS MODEL YEAR'S OUTPUT OF CHRYSLER'S NEW FULLSIZED TRUCK WALL STREET WHICH HAS MADE CHRYSLER'S STOCK ONE OF ITS DARLINGS REACTED WITH RESTRAINT IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CHRYSLER WAS QUOTED AT 48875 DOWN 125 CENTS THE RATINGS UPGRADE ACCOMPLISHES A MAJOR GOAL OF CHRYSLER'S MANAGEMENT WHICH HAS BEEN TRYING TO CUTS ITS BORROWING COSTS SIGNIFICANTLY WHILE IMPROVING ITS IMAGE AMONG INVESTORS WE ARE DELIGHTED THE CHRYSLER SPOKESWOMAN SAID OBVIOUSLY THIS EVENT IS AN EVENT WE'VE BEEN EAGERLY AWAITING FOR SOME TIME S&P'S MOVE WHICH FOLLOWS A SIMILAR ACTION BY MOODY'S INVESTORS SERVICE INC A MONTH AGO AFFECTS ABOUT 128 BILLION OF DEBT CHRYSLER SAID IT WOULD SAVE THE COMPANY ABOUT 30 MILLION A YEAR IN BORROWING COSTS CHRYSLER DEBT HAD FALLEN INTO THE JUNKBOND CATEGORY IN FEBRUARY 1991 S&P SAID IT RAISED ITS SENIOR DEBT RATING OF CHRYSLER AND ITS FINANCE UNIT TO TRIPLEB FROM DOUBLEBPLUS THE AGENCY SAID IT ALSO RAISED ITS RATINGS ON SUBORDINATED DEBT OF THE FINANCE UNIT AND ON CHRYSLER PREFERRED STOCK TO TRIPLEBMINUS FROM DOUBLEBMINUS THE RATINGS AGENCY CITED A LINE OF WELLDESIGNED AND FORTUITOUSLY TIMED NEW PRODUCTS AND BETTER OPERATING EFFICIENCY WHICH IT SAID HAVE ENHANCED CHRYSLER'S COMPETITIVE POSITION S&P OBSERVED THAT CHRYSLER'S FINANCIAL PERFORMANCE IN RECENT QUARTERS HAS EXCEEDED EXPECTATIONS AND SAID ADDITIONAL GROWTH IN EARNINGS AND CASH FLOW OVER THE NEXT TWO TO THREE YEARS IS LIKELY WHILE S&P ALSO COMMENTED THAT CHRYSLER'S CONSERVATIVE FINANCIAL POLICY SHOULD PUT IT IN A BETTER POSITION TO WEATHER THE NEXT CYCLICAL DOWNTURN THE COMPANY'S RELATIVELY THIN PRODUCT LINE AND DEPENDENCE ON THE HOTLY COMPETITIVE NORTH AMERICAN MARKET COULD RESULT IN WIDE FLUCTUATIONS IN ITS FORTUNES LIMITING THE POTENTIAL FOR ADDITIONAL RATING UPGRADES MR GLANTZ THE DEAN WITTER ANALYST ARGUED THAT IT WOULD BE A GOOD TIME TO RAISE THE DIVIDEND BECAUSE CHRYSLER IS RAPIDLY PAYING OFF ITS UNFUNDED PENSION LIABILITY IT MAY BE THE ONLY BIG THREE AUTO MAKER IN THE BLACK FOR THE THIRD QUARTER AND BEING THE FIRST OF THE BIG THREE TO INCREASE THE DIVIDEND WOULD REINFORCE ITS CAMPAIGN TO GET AWAY FROM THE IMAGE OF BEING THE WEAKEST OF THE BIG THREE SEPARATELY CHRYSLER SAID IT ACCELERATED THE PLANNED STARTUP OF NEON PRODUCTION AT ITS BELVIDERE ILL PLANT TO NOV 1 21 DAYS AHEAD OF THE PREVIOUS SCHEDULE IT SAID THE SECOND SHIFT WILL COMMENCE NOV 29 INSTEAD OF NEXT MAY AS PREVIOUSLY PLANNED CHRYSLER SAID IT WAS ABLE TO ACCELERATE THE STARTUP BECAUSE OF EARLY INVOLVEMENT BY MANUFACTURING PEOPLE IN THE PRODUCT'S DEVELOPMENT THE EARLY STARTUP WILL ALLOW THE NO 3 AUTO MAKER TO HAVE MORE CARS IN WIDER VARIETY IN DEALER SHOWROOMS WHEN THE CARS OFFICIALLY GO ON SALE JAN 1 ALTHOUGH THE COMPANY WOULDN'T SAY HOW MANY MORE CHRYSLER IS HOPING THAT THE INNOVATIVE SMALL CARS WILL CREATE A BUYING SENSATION AND HAVING A WIDE SELECTION WHEN THE STARTING GUN SOUNDS IS EXPECTED TO HELP IN RESPONSE TO QUESTIONS A CHRYSLER SPOKESMAN SAID DEALERS HAVE ORDERED 72000 OF ITS NEW LINE OF FULLSIZED RAM PICKUP TRUCKS WHICH OFFICIALLY WENT ON SALE OCT 1 TOTAL PRODUCTION DURING THE CURRENT MODEL YEAR WHICH RUNS THROUGH NEXT SEPTEMBER IS EXPECTED TO AMOUNT TO 185000 UNITS 9310050182 931005 VOLVO UNIT TO DISMISS WORKERS STOCKHOLM SWEDEN'S VOLVO PERSONVAGNAR AB THE CARMAKING ARM OF AUTOMOTIVE AND INDUSTRIAL GROUP AB VOLVO SAID IT WILL DISMISS 774 WORKERS AT ITS PLANT IN KALMAR AS PART OF THE DECISION IN NOVEMBER 1992 TO CLOSE TWO SWEDISH ASSEMBLY PLANTS THE KALMAR PLANT IS SCHEDULED TO CEASE OPERATION ON JUNE 30 1994 OVERCAPACITY IN THE EUROPEAN AUTO INDUSTRY IS THE REASON BEHIND THE PLANT CLOSURES AND JOB CUTS VOLVO SAID 9310050181 931005 FINANCING BUSINESS OHIO EDISON CO OHIO EDISON CO AKRON OHIO STANDARD & POOR'S CORP SAID IT DOWNGRADED TO NEGATIVE FROM STABLE ITS OUTLOOK ON THIS ELECTRIC UTILITY COMPANY AND ITS PENNSYLVANIA POWER CO UNIT THE RATINGS AGENCY ALSO AFFIRMED ITS TRIBLEB SENIOR SECURED DEBT RATING FOR BOTH COMPANIES THE DOWNGRADE REFLECTS INCREASINGLY COMPETITIVE MARKET CONDITIONS AND THE VULNERABILITY OF BOTH COMPANIES DUE TO HIGH ELECTRIC RATES AND SIGNIFICANT INDUSTRIAL EXPOSURE S&P SAID THE AGENCY CITED RECENT POOR PERFORMANCE AT OHIO EDISON'S 352OWNED PERRY 1 NUCLEAR UNIT AND SPECULATED THAT OHIO EDISON MAY HAVE TO CUT PRICES TO MAINTAIN ITS CUSTOMER BASE S&P SAID PENNSYLVANIA POWER'S FINANCIAL STATUS WEAKENED FOLLOWING THE NOVEMBER 1992 BANKRUPTCYLAW FILING OF ITS LARGEST CUSTOMER SHARON STEEL UNLESS PENNSYLVANIA POWER CAN WIN NEW CUSTOMERS FURTHER COSTCUTTING WILL BE NECESSARY THE RATING AGENCY SAID AN OHIO EDISON SPOKESMAN COULDN'T BE REACHED FOR COMMENT 9310050180 931005 AMBER'S STORES SEPTEMBER SALES DALLAS AMBER'S STORES INC SAID SEPTEMBER SALES INCREASED 77 TO 5 MILLION FROM 28 MILLION A YEAR EARLIER ALTHOUGH SALES AT STORES OPEN AT LEAST A YEAR DECLINED 16 THE ARTS AND CRAFTS RETAILER SAID TOTAL SALES FOR THE EIGHT MONTHS ENDED SEPT 30 ROSE 60 TO 311 MILLION FROM 194 MILLION SAMESTORE SALES DROPPED 3 9310050179 931005 DOW JONES EQUITY MARKET INDEX NEW YORK TWO COMPANIES WERE REMOVED FROM THE DOW JONES EQUITY MARKET INDEX EFFECTIVE YESTERDAY MNC FINANCIAL INC WAS REMOVED FROM THE BANKING INDUSTRY GROUP THE COMPANY HAS BEEN ACQUIRED BY NATIONSBANK ALSO AFFILIATED PUBLICATIONS INC WAS REMOVED FROM THE PUBLISHING INDUSTRY GROUP IT WAS ACQUIRED BY NEW YORK TIMES CO 9310050178 931005 MGM TO REDEEM DEBENTURES SANTA MONICA CALIF METROGOLDWYNMAYER INC SAID IT WOULD REDEEM ALL 111 MILLION OF ITS 13 SUBORDINATED DEBENTURES DUE DEC 15 1996 THE REDEMPTION WILL TAKE PLACE ON DEC 15 OF THIS YEAR WITH INVESTORS RECEIVING 105 OF THE PRINCIPAL AMOUNT PLUS INTEREST MGM A FILM PRODUCER AND DISTRIBUTOR IS OWNED BY FRENCH BANK CREDIT LYONNAIS SA 9310050177 931005 INTERNATIONAL NORTH KOREA AIDES SOUTH KOREANS TO MEET TODAY BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA OFFICIALS FROM NORTH KOREA AND SOUTH KOREA ARE EXPECTED TO MEET FOR THE FIRST TIME IN EIGHT MONTHS TODAY NORTH KOREA'S APPARENT WILLINGNESS TO ESTABLISH A DIALOGUE WITH SEOUL REPRESENTS A MINOR BREAKTHROUGH IN THE CONFRONTATION OVER PYONGYANG'S SUSPECTED NUCLEAR WEAPONS PROGRAM LAST WEEK PYONGYANG LASHED OUT AGAINST A RESOLUTION DRAFTED BY THE INTERNATIONAL ATOMIC ENERGY AGENCY OR IAEA URGING THE NORTH TO SUBMIT TO INSPECTIONS OF ITS NUCLEAR FACILITIES EARLIER PYONGYANG CANCELED TALKS WITH THE AGENCY SCHEDULED FOR LATER THIS MONTH IT LOOKS LIKE THE NORTH KOREANS HAVE BLINKED A LITTLE BIT SAYS A WESTERN DIPLOMAT THE QUESTION NOW IS WHETHER THEY'LL MEET WITH THE IAEA IT SEEMS LIKE THEY CAN'T PUT A FRIENDLY FACE ON FOR BOTH PARTIES AT THE SAME TIME FOLLOWING A SECOND ROUND OF HIGHLEVEL USNORTH KOREAN TALKS IN VIENNA IN JULY STATE DEPARTMENT OFFICIALS MADE A THIRD MEETING CONDITIONAL ON WHETHER PYONGYANG WOULD INITIATE TALKS WITH SEOUL AND IAEA INSPECTORS NORTH KOREA LATE LAST MONTH PROPOSED WORKINGLEVEL TALKS WITH SOUTH KOREA DROPPING TWO PRECONDITIONS FOR A DIALOGUE AN END TO JOINT ANNUAL USSOUTH KOREA MILITARY MANEUVERS KNOWN AS TEAM SPIRIT AND A HALT TO SEOUL'S PUSH TO ENLIST FOREIGN DIPLOMATIC HELP IN CONTROLLING PYONGYANG'S NUCLEAR AMBITIONS THE TALKS ARE SCHEDULED FOR 10 AM AT KOREA'S DEMILITARIZED ZONE SOUTH KOREA FIRST PROPOSED DIRECT TALKS IN LATE MAY SETTING IN MOTION A SERIES OF COUNTERPROPOSALS THAT HAVE YET TO BEAR FRUIT THE GESTURE IS PART OF AN INTERNATIONAL BID TO DISCOURAGE NORTH KOREA FROM BUILDING A NUCLEAR ARSENAL ALTHOUGH PYONGYANG DENIES IT IS DEVELOPING ATOMIC CAPABILITIES FOR MILITARY USE SUSPICIONS DEEPENED IN MARCH WHEN IT ANNOUNCED IT WAS WITHDRAWING FROM THE NUCLEAR NONPROLIFERATION TREATY IN PART TO AVOID ROUTINE INSPECTIONS FROM THE IAEA NORTH KOREA COULD FACE TRADE SANCTIONS IF DIPLOMATIC EFFORTS FAIL TO RESOLVE THE ISSUE 9310050175 931005 INTERNATIONAL MEXICO'S PRESIDENT PLANS TO CUT BACK FARM SUBSIDIES BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY PRESIDENT CARLOS SALINAS DE GORTARI ANNOUNCED A PLAN TO RESTRUCTURE MEXICO'S AILING AGRICULTURAL ECONOMY AS PART OF A LONGTERM PLAN TO STEM EMIGRATION TO THE US THE PROGRAM ALSO HOPES TO EASE MEXICAN FARMERS INTO THE MORE COMPETITIVE MARKETPLACE THAT THE NORTH AMERICAN FREE TRADE AGREEMENT WOULD CREATE THE PROGRAM OFFERS INCENTIVES TO ENCOURAGE FARMERS TO BECOME MORE EFFICIENT AND ALSO ELIMINATES GOVERNMENT SUBSIDIES FOR CORN AND BEANS WITH THE AIM OF GETTING FARMERS TO SWITCH TO OTHER CROPS SOME ECONOMISTS FEAR THE PROGRAM WHILE NEEDED MAY ACTUALLY INCREASE EMIGRATION TO THE US IN THE SHORTTERM BECAUSE THE ELIMINATION OF CROP SUBSIDIES WILL WIPE OUT MANY FARM JOBS AND FORCE THE WORKERS TO SEEK WORK ELSEWHERE MEXICAN OFFICIALS SAID THEY BELIEVE THAT IN 15 YEARS THE NUMBER OF MEXICANS LIVING IN THE COUNTRYSIDE WILL SHRINK TO 15 OF THE TOTAL POPULATION FROM 30 BY CONTRAST IN THE US ABOUT 3 OF THE POPULATION DEPENDS ON FARM INCOME UNDER THE PROGRAM THE MEXICAN GOVERNMENT WILL TRY TO CUSHION THE PAIN CAUSED BY THE ELIMINATION OF SUBSIDIES IT WILL INCREASE PAYMENTS TO FARMERS TO ABOUT 36 BILLION NEXT YEAR FROM ABOUT 25 BILLION CURRENTLY BUT THE GOVERNMENT THEN WILL PHASE OUT THE PAYMENTS OVER THE NEXT 15 YEARS ONE OF THE EFFECTS OF THE PROGRAM SHOULD BE TO GET MEXICAN FARMERS TO REDUCE THEIR RELIANCE ON CORN AND BEANS WHICH THEY DON'T PRODUCE EFFICIENTLY THAT SHOULD OPEN THE MEXICAN MARKET UP TO MORE EXPORTS FROM US FARMERS IT SHOULD ALSO ENCOURAGE MEXICAN FARMERS TO PRODUCE MORE VEGETABLES AND CITRUS FRUITS WHICH THEY CAN DO QUITE PROFITABLY THE GOVERNMENT HAD TRIED TWO YEARS AGO TO REFORM THE AGRICULTURAL SECTOR BY PARTIALLY PRIVATIZING MEXICO'S COMMUNAL FARMING SYSTEM ONCE CONSIDERED A CROWNING ACHIEVEMENT OF THE 1910 MEXICAN REVOLUTION BUT MEXICO'S AGRICULTURAL ECONOMY HAS ACTUALLY CONTRACTED IN THE PAST TWO YEARS ECONOMISTS GENERALLY PRAISED THE MEXICAN GOVERNMENT FOR TRYING TO TACKLE WHAT MANY DESCRIBE AS MEXICO'S MOST COMPLEX SOCIAL POLITICAL AND ECONOMIC PROBLEM BUT WASHINGTON DC POLITICAL ECONOMIST RAUL HINOJOSA SAID IT'S STILL NOT CLEAR WHETHER A FARMER WILL USE THE NEW TYPE OF GOVERNMENT PAYMENT TO BUY A TICKET TO LOS ANGELES OR A JOHN DEERE TRACTOR THE CHECK COULD BE SEEN AS A ONETIME WINDFALL SO THE FARMERS WILL SAY LET'S MIGRATE' DR HINOJOSA SAID OR IT MAY MAKE THEM THINK THERE'S REASON TO STICK AROUND 9310050174 931005 DOWNGRADES OUTPACE UPGRADES OF ISSUES BY DOLLAR VOLUME NEW YORK STANDARD & POOR'S CORP SAID THE DOLLAR VOLUME OF CORPORATE DEBT DOWNGRADES IN THE THIRD QUARTER CONTINUED TO OUTPACE UPGRADES THE NUMBER OF UPGRADES HOWEVER EXCEEDED DOWNGRADES REFLECTING IMPROVED RATINGS AMONG NONINVESTMENTGRADE COMPANIES WITH SMALL AMOUNTS OF DEBT OUTSTANDING RATINGS FELL ON 36 ISSUES TOTALING 358 BILLION AND WERE RAISED ON 59 ISSUES TOTALING 251 BILLION AMONG SIGNIFICANT ACTIONS WAS THE DOWNGRADE OF INTERNATIONAL BUSINESS MACHINES CORP FOR THE SECOND TIME THIS YEAR AS WELL AS UPGRADES OF COMCAST CORP'S COMCAST CELLULAR UNIT UNISYS CORP AND AMERICAN STORES CO SEPARATELY THE RATINGS CONCERN SAID MUNICIPAL DOWNGRADES EXCEEDED UPGRADES OVER THE SAME PERIOD IN TERMS OF DOLLAR VOLUME RATINGS ON 36 ISSUES TOTALING 305 BILLION WERE LOWERED COMPARED WITH 45 INCREASES AFFECTING 218 BILLION OF DEBT UTILITY ISSUES ACCOUNTED FOR MOST OF THE MUNICIPAL DOWNGRADE VOLUME RATINGS ON THREE ISSUES TOTALING 23 BILLION WERE LOWERED COMPARED WITH FOUR TOTALING 240 MILLION THAT WERE RAISED S&P SAID HEALTHCARE AND HOUSING DEBT MADE UP THE LARGEST NUMBER OF ISSUES DOWNGRADED NINE HEALTHCARE ISSUES TOTALING 256 MILLION WERE DOWNGRADED COMPARED WITH 16 ISSUES TOTALING 350 MILLION THAT WERE UPGRADED RATINGS ON 15 HOUSING ISSUES TOTALING 77 MILLION WERE LOWERED COMPARED WITH 11 TOTALING 108 MILLION THAT WERE RAISED 9310050172 931005 TECHNOLOGY U S WEST TO OFFER VIDEO TELEPHONE ON COMPUTER SCREEN PICTURETEL SYSTEM IS DIRECTED AT FIRMS THAT CAN'T AFFORD LARGE CONFERENCING GEAR BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL TWO TELECOMMUNICATIONS COMPANIES ANNOUNCED YET ANOTHER REASON TO WORRY ABOUT A BAD HAIR DAY RELATIVELY INEXPENSIVE VIDEO PHONES THAT WORK THROUGH THE DESKTOP COMPUTER U S WEST INC SAID IT SIGNED AN AGREEMENT WITH PICTURETEL CORP TO DISTRIBUTE A VIDEO CONFERENCING SYSTEM THAT CAN BE USED OVER DESKTOP COMPUTERS THE SYSTEM TRANSMITS VOICE DATA AND A PERSON'S IMAGE OVER THE PUBLIC PHONE NETWORKS AND IS MAINLY AIMED AT CORPORATIONS WHO CAN'T AFFORD LARGE VIDEO CONFERENCING SYSTEMS THE MAIN APPLICATION IS AD HOC COLLABORATIVE WORK BETWEEN FARFLUNG USERS THAT MIMICS A LIVE MEETING SAID JOE ZELL DIRECTOR OF SERVICE DEVELOPMENT AT U S WEST INCLUDING A PCMOUNTED COMPACT CAMERA THE SYSTEM COSTS ABOUT 8500 U S WEST SAID IT WILL OFFER THE SERVICE IN ITS 14 STATES BEGINNING IN DECEMBER SKEPTICS HOWEVER ARGUE THAT THE HEFTY PRICE WILL REMAIN AN IMPEDIMENT TO WIDESPREAD USE OF A PICTURE TELEPHONE SYSTEM WHICH HAS BEEN OFTEN PROMOTED BUT HAS SELDOM SUCCEEDED U S WEST EXPECTS TO SELL THE DESKTOP VIDEO CONFERENCING SERVICE TO ABOUT 7 OF ITS BUSINESS PHONE CUSTOMERS BY 1998 MAINLY ON THE ARGUMENT THAT THE PUBLICSWITCHED DIGITAL NETWORK CAN REDUCE THE COST OF VIDEO CONFERENCING BY AS MUCH AS 60 IT IS IDEAL FOR ENGINEERING ORGANIZATIONS DESIGN GROUPS MEDICAL CONSULTATION EMPLOYEE TRAINING AND OTHER COLLABORATIVE ENTERPRISES U S WEST SAID BUT ELLIOT GOLD A TELECONFERENCING ANALYST BELIEVES THE BABY BELL WILL BE HARDPRESSED TO RACK UP SIGNIFICANT SALES FOR AT LEAST TWO OR THREE YEARS EVER SINCE AMERICAN TELEPHONE & TELEGRAPH CO INTRODUCED THE CONCEPT OF A VIDEOPHONE COMPANIES HAVE BEEN UNABLE TO IMPROVE UPON THE HERKYJERKY VIDEO QUALITY OF SUCH SYSTEMS MR GOLD SAID U S WEST MAINTAINS THAT USERS OF ITS DESKTOP SYSTEM WILL BE MORE INTERESTED IN SWAPPING INFORMATION THAN LOOKING AT EACH OTHER AND BESIDES IF YOUR HAIR IS ASKEW YOU CAN ANSWER USING AUDIO ONLY MR ZELL SAID PICTURETEL DANVERS MASS MAKES VIDEO CONFERENCING SYSTEMS U S WEST IS A MAJOR TELECOMMUNICATIONS COMPANY 9310050171 931005 ECONOMY SPENDING IN AUGUST ON NEW CONSTRUCTION POSTED DECLINE OF 16 WASHINGTON NEW CONSTRUCTION SPENDING FELL 16 IN AUGUST THE FIRST DECLINE SINCE A 21 DROP IN APRIL THE COMMERCE DEPARTMENT SAID THE DEPARTMENT ALSO REVISED JULY'S FIGURES TO SHOW A 01 INCREASE INSTEAD OF THE 07 DECLINE ORIGINALLY REPORTED ANALYSTS SAID AUGUST FIGURES ALSO COULD BE BOOSTED AS MONTHTOMONTH SPENDING PATTERNS ARE OFTEN IRREGULAR AND SUBJECT TO REVISION I WOULDN'T PUT TOO MUCH STOCK IN ONE MONTH SAID DAVID LEREAH CHIEF ECONOMIST OF THE MORTGAGE BANKERS ASSOCIATION WHO CONTINUES TO PREDICT HEALTHY GAINS IN THE HOUSING SECTOR THROUGH THE END OF THE YEAR THE AUGUST DECLINE WAS LED BY A 35 DECREASE IN GOVERNMENT CONSTRUCTION SPENDING AND A 12 DROP IN NONRESIDENTIAL CONSTRUCTION SPENDING RESIDENTIAL CONSTRUCTION SPENDING EDGED UP 01 GIVING ECONOMISTS HOPE THAT LOW INTEREST RATES STILL COULD HELP PROMPT MODERATE GROWTH IN HOME BUILDING MR LEREAH POINTED TO RECENT INCREASES IN SINGLEFAMILY HOUSING STARTS AND BUILDING PERMITS AND SAID THAT WEATHER PERMITTING CONSTRUCTION SHOULD BE STRONG THIS WINTER HOWEVER HE NOTED THAT LOW INTEREST RATES WILL NEED TO BE PAIRED WITH GROWTH IN EMPLOYMENT INCOME AND CONSUMER CONFIDENCE IF THERE IS TO BE A BIG BOOST IN THE STAGNANT HOUSING MARKET ALL FIGURES HAVE BEEN ADJUSTED FOR INFLATION AND NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S FIGURES FOR CONSTRUCTION SPENDING IN BILLIONS OF DOLLARS AT SEASONALLY ADJUSTED ANNUAL RATES 9310050163 931005 INTERNATIONAL MANILA ACTS TO END LONG LEGAL BATTLE WITH WESTINGHOUSE BY REGINALD CHUA STAFF REPORTER OF THE WALL STREET JOURNAL MANILA PHILIPPINES PHILIPPINE PRESIDENT FIDEL RAMOS APPROVED IN PRINCIPLE AN OUTOFCOURT SETTLEMENT WITH WESTINGHOUSE ELECTRIC CORP THAT WOULD INVOLVE MANILA'S DROPPING ALL LEGAL CLAIMS OVER A 23 BILLION NUCLEAR POWER PLANT THE US COMPANY BUILT IN THE MID1980S UNDER THE AGREEMENT WESTINGHOUSE WOULD PROVIDE TWO NEW 100MEGAWATT GAS TURBINES VALUED AT 495 MILLION TO THE PHILIPPINES IN EXCHANGE MANILA WOULD DROP A BREACHOFCONTRACT ARBITRATION CASE IT HAS PENDING AGAINST WESTINGHOUSE IN GENEVA AS WELL AS AN APPEAL IN A BRIBERY CASE IT LOST IN FEDERAL COURT IN NEW JERSEY THE PHILIPPINE GOVERNMENT ALSO WOULD STOP REQUIRING THAT BIDDERS FOR POWERGENERATION PROJECTS IDENTIFY WESTINGHOUSE EQUIPMENT USED IN THEIR PROPOSALS AND THE COST OF ALTERNATIVE EQUIPMENT I HAVE APPROVED THIS IN PRINCIPLE MR RAMOS SAID AT A NEWS CONFERENCE BUT ADDED THAT HE WOULD SEEK CONGRESSIONAL SUPPORT BEFORE FORMALLY ACCEPTING THE SETTLEMENT HE SAID AN AGREEMENT WOULD SAVE THE GOVERNMENT LEGAL COSTS WESTINGHOUSE DECLINED TO COMMENT SAYING APPROVAL OF THE SETTLEMENT ISN'T YET FINAL THE POWER PLANT 403 MILES WEST OF MANILA HAS LONG BEEN A SOURCE OF CONTROVERSY BUILT DURING THE RULE OF PRESIDENT FERDINAND MARCOS IT WAS TAINTED BY ALLEGATIONS OF CORRUPTION WHICH WESTINGHOUSE DENIED IN 1986 SHORTLY AFTER THE 620MEGAWATT PLANT WAS COMPLETED MR MARCOS WAS DEPOSED IN A REVOLT THAT SWEPT CORAZON AQUINO TO POWER MRS AQUINO ORDERED THE PLANT MOTHBALLED BECAUSE OF FEARS THAT IT WAS UNSAFE AND SUITS WERE FILED AGAINST WESTINGHOUSE MRS AQUINO DIDN'T BUILD ALTERNATIVE POWER PLANTS AND THE PHILIPPINES NOW SUFFERS FROM A ELECTRICITY SHORTAGE THE NEW JERSEY COURT IN MAY ACQUITTED WESTINGHOUSE AND ITS ENGINEERING COMPANY BURNS & ROE ASSOCIATES OF ALLEGATIONS THAT THEY BRIBED MR MARCOS TO WIN THE CONTRACT FOR THE PLANT MANILA IS STUDYING PROPOSALS TO TURN THE PLANT INTO A NONNUCLEAR POWER STATION 9310050162 931005 QUARTERLY MUTUAL FUNDS REVIEW HUNT FOR SMALL TREASURES GOES GLOBAL BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORE MUTUAL FUNDS ARE VENTURING OVERSEAS TO BUY SMALLCOMPANY STOCKS FROM A SOFT DRINK BOTTLER IN MEXICO TO A MAKER OF TOILETS IN THAILAND SMALL STOCKS HAVE BEEN SO POPULAR IN THE US RECENTLY IT'S ONLY NATURAL TO SEEK OUT THEIR COUNTERPARTS ABROAD SAYS MARK HEADLEY DIRECTOR OF INTERNATIONAL STRATEGIES AT THE NOLOAD FUND ANALYST A SAN FRANCISCO NEWSLETTER KEEPING UP WITH ALL THE INTERNATIONAL FUNDS POPPING UP IN THE NEXT TWO YEARS IS GOING TO BE A CHALLENGE MR HEADLEY PREDICTS ALREADY IN BUSINESS ARE SEVERAL NOLOAD GLOBAL FUNDS SHOWN IN THE TABLE THEY CAN BUY SMALL STOCKS ALMOST ANYWHERE IN THE WORLD INCLUDING IN THE US SMALL STOCKS TEND TO DO WELL WHEN ECONOMIES ARE ABOUT TO RECOVER LEADING SOME FUND MANAGERS TO HOPE FOR BIG GAINS IN EUROPE AND THE SHARE PRICES OF SMALL COMPANIES IN THE EMERGING MARKETS OF ASIA AND LATIN AMERICA ALSO SHOULD TAKE OFF IN THE NEXT FEW YEARS ANALYSTS SAY A NIMBLE COMPANY CAN SHOW FASTER EARNINGS GROWTH THAN A LUMBERING BEHEMOTH AND WITH THE US STOCK MARKET GETTING MORE EXPENSIVE AND SMALLSTOCK FUND MANAGERS BANGING INTO EACH OTHER TO GET SHARES MARKETS ABROAD LOOK ESPECIALLY GOOD THAT IS IF YOU DON'T MIND WILD UPS AND DOWNS SUCH FUNDS COULD BE A NIGHTMARE FOR A STABILITYLOVING INVESTOR WHO CAN'T STAND CURRENCYINDUCED GYRATIONS IN A FUNDS' SHARE PRICE THERE ARE A LOT OF RISKS THAT COME WITH INVESTING IN SMALL STOCKS INTERNATIONALLY MR HEADLEY NOTES MOREOVER HE SAYS MANY OF THE FOREIGN FUNDS ARE NEW SO YOU HAVE TO RELY ON THE PAST RECORDS OF THE MANAGEMENT IT HELPS IF THE MANAGER ALREADY HAS A STRONG TRACK RECORD OF PICKING SMALL STOCKS IN THE US WHY ENDURE ALL THE RISKS SMALLER STOCKS HAVE PRODUCED HIGHER RETURNS OVER TIME THAN LARGER STOCKS IN THE US SAYS LEAH ZELL A PORTFOLIO MANAGER OF THE ONEYEAROLD ACORN INTERNATIONAL FUND SMALL STOCKS ARE LESS WELLCOVERED BY ANALYSTS AND LESS EFFICIENTLY PRICED SHE SAYS SO WHEN INVESTORS DO FIND A GOOD COMPANY IT MAY BE CHEAP A BIG PROBLEM WITH SMALL FOREIGN STOCKS IS LACK OF LIQUIDITY ANALYSTS SAY THIS IS WALL STREET'S WAY OF SAYING IT'S DIFFICULT TO BUY A SIZABLE PORTION OF SHARES IN THESE STOCKS AND IT'S VERY DIFFICULT TO SELL THEM TO BEAT THIS PROBLEM MARK EDWARDS A LONDONBASED PORTFOLIO MANAGER WITH THE T ROWE PRICE INTERNATIONAL DISCOVERY FUND SAYS THE FUND INVESTS IN ABOUT 350 STOCKS IN 35 COUNTRIES THAT'S A LOT OF STOCKS TO HOLD IN A FUND WITH TOTAL ASSETS OF ABOUT 280 MILLION AND WHERE THE COMPANIES IN THE PORTFOLIO HAVE A MEDIAN MARKET VALUE OF 300 MILLION IF YOU DIVERSIFY SUFFICIENTLY YOU WILL GET THE SUPERIOR GROWTH THAT SMALL STOCKS CAN OFFER MR EDWARDS SAYS SMALL STOCKS OFTEN HAVE FEW ANALYSTS FOLLOWING THEM IN FOREIGN COUNTRIES THIS IS ESPECIALLY TRUE HAVE CALCULATOR WILL TRAVEL IS THE MOTTO OF MANY FUND MANAGERS WHO BUY SMALL FOREIGN STOCKS RIGHT NOW SOMEONE IS IN TOKYO AND JUST LEFT TAIWAN AND KOREA ANOTHER ANALYST JUST GOT BACK FROM GREECE AND TURKEY AND I'M ON MY WAY TO INDIA AND PAKISTAN SAYS GARY GREENBERG A PORTFOLIO MANAGER AT ACORN INTERNATIONAL MR GREENBERG SAYS THE FUND HOLDS MORE THAN 150 STOCKS THAT ARE FROM 37 DIFFERENT COUNTRIES ACORN'S MS ZELL SAYS THEY INVEST THEMATICALLY ONE THEME THEY CURRENTLY LIKE IS LEISURE THEY OWN SHARES OF COSTA CROCIERE A CRUISE LINE OPERATOR IN ITALY AND GENTING A CASINO CONCERN IN MALAYSIA SCUDDER GLOBAL SMALL COMPANY FUND WHICH WAS STARTED IN SEPTEMBER 1991 USES SCUDDER'S SQUADRON OF ABOUT 18 INDUSTRY ANALYSTS AND 11 COUNTRY ANALYSTS IN ADDITION TO ITS PORTFOLIO MANAGERS TO SCOUR THE GLOBE THE FUND IS UP 29 YEARTODATE IT'S LIKE A SPIDER WEB SAYS ROY MCKAY WHO HEADS SCUDDER'S SMALLCOMPANY RESEARCH GROUP HE SAYS EACH COUNTRY GETS RATED FOR ITS ECONOMIC AND POLITICAL CLIMATE BY PLACING ON PAPER A DOT STICKER COLORED GREEN RED OR AMBER MUCH LIKE A TRAFFIC LIGHT'S SIGNALS YOU HAVE TO SEE HOW A STOCK IS TRADING RELATIVE TO ITS OWN MARKET HE SAYS MOREOVER YOU CAN'T ALWAYS TRUST FOREIGN FINANCIAL STATEMENTS AS THEY APPEAR ON PAPER HE SAYS YOU HAVE TO GET BEHIND THE NUMBERS HE ALSO SAYS YOU HAVE TO EVALUATE THE INDUSTRY WITHIN A COUNTRY A GROWTH INDUSTRY ABROAD MIGHT BE ALREADY MATURE IN THE US TOILETS AREN'T A BOOMING INDUSTRY IN THE US BUT THEY PROBABLY WILL BE IN SOUTHEAST ASIA MR MCKAY SAYS THERE IS A CRYING NEED FOR SOMETHING AS MUNDANE AS TOILETS IN THIS PART OF THE WORLD AND WE THINK AMERICAN STANDARD OF THAILAND HAS SOME REAL GROWTH OPPORTUNITIES HE SAYS HE SAYS BOTTLING IS ANOTHER AREA THAT IS NO LONGER ACCELERATING IN THE US BUT HAS HUGE POTENTIAL IN LATIN AMERICA THE SCUDDER FUND HOLDS GRUPO EMBOTELLADOR DE MEXICO A PEPSICO BOTTLER IN MEXICO T ROWE PRICE INTERNATIONAL DISCOVERY FUND USES A SIMILAR HYBRID PROCESS OF MACRO AND MICRO ANALYSIS BY ESTABLISHING A COUNTRY FRAMEWORK BEFORE VISITING THE COMPANIES WE'RE NOT SOLELY BOTTOMUP INVESTORS SAYS MR EDWARDS ABROAD MANY COMPANIES ARE RUN BY FAMILIES OR FRIENDS AND THROUGH LOCAL BROKERS WE TRY TO GET TO KNOW THE MANAGEMENT AND THE LOCAL AREA AS WELL AS POSSIBLE HE SAYS THE FUND WHICH STARTED IN 1989 IS UP 31 YEARTODATE SOME OF THE FUND'S BIGGER HOLDINGS ARE SEMBAWANG MARITIME A SHIPYARD IN SINGAPORE APOLLO ELECTRONICS FROM JAPAN AND FISHER & PAYKEL INDUSTRIES A NEW ZEALAND CONSUMERPRODUCTS COMPANY THAT MAKES WASHING MACHINES IT'S POSSIBLE TO HAVE A RELATIVELY TIGHT FOCUS IN A SMALLSTOCK FUND TWEEDY BROWNE GLOBAL VALUE FUND IS USING A VALUE METHOD FOR FINDING SMALL STOCKS AND IT'S FINDING PLENTY IN EUROPE WHICH MAKES UP 90 OF THE FUND LAUNCHED IN JUNE THE FUND HAS ROUGHLY 100 MILLION IN ASSETS WITH ABOUT 7 INVESTED IN THE US WE DON'T TRY TO MAKE BETS ON THE MARKET OR CURRENCIES SAYS WILLIAM BROWNE A GENERAL PARTNER AT TWEEDY BROWNE CO WE'RE NOT LOOKING FOR THEMES OR EMERGING GROWTH WE'RE AGNOSTIC WE ARE LOOKING FOR ABSOLUTE VALUE IN OTHER WORDS BARGAINS STOCKS THAT ARE CHEAP RELATIVE TO CORPORATE BOOK VALUE LOW AS A MULTIPLE OF EARNINGS OR TEMPTING BY SIMILAR YARDSTICKS TWEEDY'S MANAGERS BASICALLY TRY TO BUY STOCK THAT IS TRADING AT A LOWER PRICE THAN WHAT IT WOULD BE WORTH TO AN ACQUIRER THE FUND HOLDS BANCO DI SARDEGNA AN ITALIAN BANK THAT TRADES AT FOUR TIMES EARNINGS AND 40 OF ITS BOOK VALUE 9310050160 931005 WHO'S NEWS CINCINNATI BELL INC CINCINNATI BELL INC CINCINNATI JOHN T LAMACCHIA THE 52YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER OF THIS TELECOMMUNICATIONS COMPANY WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE MR LAMACCHIA SUCCEEDS DH HIBBARD 70 WHO WILL REMAIN CHAIRMAN SEPARATELY PHILLIP R COX 46YEAROLD PRESIDENT AND CHIEF EXECUTIVE OF COX FINANCIAL CORP WAS ELECTED A DIRECTOR FILLING A VACANCY ON THE 12MEMBER BOARD 9310050159 931005 WHO'S NEWS LEUCADIA NATIONAL CORP LEUCADIA NATIONAL CORP NEW YORK LEONARD SEBESTA CHAIRMAN OF LEUCADIA'S AMERICAN INVESTMENT BANK UNIT IN SALT LAKE CITY RESIGNED IN SEPTEMBER LEUCADIA SAID THE COMPANY DIDN'T PROVIDE A REASON AND HASN'T NAMED A SUCCESSOR MR SEBESTA WHO JOINED THE BANKING UNIT IN 1989 COULDN'T BE REACHED FOR COMMENT AMERICAN INVESTMENT BANK HAS ABOUT 180 MILLION IN ASSETS LEUCADIA WITH 43 BILLION IN ASSETS IS A HOLDING COMPANY FOR INSURANCE BANKING REAL ESTATE AND MANUFACTURING SUBSIDIARIES 9310050158 931005 DIVIDEND NEWS VSB BANCORP INC VSB BANCORP INC CLOSTER NJ DECLARED A 20 STOCK DIVIDEND PAYABLE NOV 10 TO STOCK OF RECORD OCT 15 SHAREHOLDERS WILL RECEIVE ONE ADDITIONAL SHARE FOR EACH FIVE SHARES HELD THE BANK HOLDING COMPANY CURRENTLY HAS ABOUT 28 MILLION SHARES OUTSTANDING THE COMPANY ALSO SAID IT HIRED INVESTMENT BANKING COMPANY RYAN BECK & CO TO EXPLORE POSSIBLE OPTIONS TO ENHANCE SHAREHOLDER VALUE INCLUDING A SALE OF THE COMPANY OR POSSIBLE ACQUISITIONS OF OTHER BANKS 9310050157 931005 WHO'S NEWS PATTEN CORP PATTEN CORP BOCA RATON FLA GEORGE F DONOVAN 54 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS REALESTATE CONCERN AS PRESIDENT MR DONOVAN PREVIOUSLY IN CHARGE OF THE COMPANY'S VACATION OWNERSHIP BUSINESS SUCCEEDS HARRY S PATTEN WHO WILL CONTINUE AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER ON DEC 31 MR DONOVAN WILL ALSO ASSUME THE TITLE OF CHIEF EXECUTIVE FROM MR PATTEN WHO IS 57 YEARS OLD PREVIOUSLY THE COMPANY DIDN'T HAVE A CHIEF OPERATING OFFICER 9310050156 931005 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/4 HIGH 3 1/16 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 59 DAYS 312 60 TO 109 DAYS 320 110 TO 239 DAYS 325 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 316 60 DAYS 326 90 DAYS CERTIFICATES OF DEPOSIT 253 ONE MONTH 258 TWO MONTHS 269 THREE MONTHS 276 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 325 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 305 60 DAYS 314 90 DAYS 314 120 DAYS 314 150 DAYS 314 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 3/8 THREE MONTHS 3 3/8 SIX MONTHS 3 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 3375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY OCTOBER 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 659 60 DAYS 667 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 663 60 DAYS 673 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 485 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 268 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9310050155 931005 WAINOCO OIL'S DISCOVERY WELL HOUSTON WAINOCO OIL CORP SAID ITS DISCOVERY WELL IN THE GULF OF MEXICO FLOWED 121 MILLION CUBIC FEET OF GAS AND 215 BARRELS OF CONDENSATE AN OILLIKE LIQUID A DAY THE WELL HIGH ISLAND BLOCK 93 NO 1 WAS TESTED THROUGH A 19/64INCH RESTRICTED OPENING AND MARKS THE DISCOVERY OF A NEW FIELD 30 MILES OFF THE COAST OF TEXAS WAINOCO HAS A 25 INTEREST IN THE WELL GENERAL ATLANTIC RESOURCES INC THE OPERATOR OWNS 625 INTEREST AND THE BALANCE IS HELD BY A CLOSELY HELD COMPANY THAT WASN'T IDENTIFIED 9310050154 931005 SCHWEPPES RIGHTS ISSUE ACCEPTED LONDON CADBURY SCHWEPPES PLC SAID THERE HAS BEEN A 933 ACCEPTANCE OF ITS RECENT RIGHTS ISSUE THE BRITISH FOOD AND BEVERAGE COMPANY SAID THAT SHARES NOT ACCEPTED HAVE BEEN SOLD IN THE MARKET AT A PREMIUM ON SEPT 9 CADBURY SCHWEPPES ANNOUNCED A 324 MILLION 4876 MILLION RIGHTS ISSUE ON THE BASIS OF ONE NEW SHARE FOR EVERY NINE SHARES ALREADY HELD THE RIGHTS ISSUE SHARES WERE PRICED AT 400 PENCE APIECE 9310050153 931005 TECHNOLOGY APPLE'S ADVANCED SYSTEM 7 CUPERTINO CALIF APPLE COMPUTER INC SAID IT HAS LAUNCHED AN ADVANCED VERSION OF ITS SYSTEM 7 OPERATING SYSTEM FOR APPLE MACINTOSH COMPUTERS THE NEW VERSION CALLED SYSTEM 7 PRO HAS A SUGGESTED US RETAIL PRICE OF 149 FOR A SINGLE USER SINCE SYSTEM 7 PRO INCORPORATES SOFTWARE UPGRADES THAT HAVE ALREADY BEEN INTRODUCED INTO THE NEXT GENERATION OF SYSTEM 7 IT REPRESENTS NO BREAKTHROUGH IN TECHNOLOGY SAID BRUCE M LUPATKIN MANAGING DIRECTOR OF RESEARCH FOR HAMBRECHT & QUIST 9310050152 931005 WHO'S NEWS IBM CREDIT'S KAVETAS RESIGNS AFTER FAILING TO WIN FINANCE POST 124 NEW YORK HARRY L KAVETAS PRESIDENT OF INTERNATIONAL BUSINESS MACHINES CORP'S CREDIT SUBSIDIARY SAID HE WILL LEAVE THE COMPANY BECAUSE HE WAS PASSED OVER IN THE SEARCH FOR IBM'S NEW CHIEF FINANCIAL OFFICER MR KAVETAS 55 YEARS OLD WAS AN IBM VICE PRESIDENT AND A 32YEAR VETERAN OF THE COMPANY AND IN HIS SEVEN YEARS RUNNING IBM CREDIT CORP THE BUSINESS TURNED IN A STRONG PERFORMANCE BUT IN MAY IBM CHAIRMAN LOU GERSTNER TURNED TO AN OUTSIDER CHRYSLER CORP'S JEROME B YORK TO BECOME CHIEF FINANCIAL OFFICER AND THE ARCHITECT OF IBM'S ONGOING RESTRUCTURING IT WAS CLEAR WITH THE DECISIONS THAT BROUGHT IN JERRY THAT MY PROSPECTS AT IBM WEREN'T FOR A GREAT DEAL MORE RESPONSIBILITY SAID MR KAVETAS WHO WILL TAKE EARLY RETIREMENT ON DEC 31 AND SEEK A POST ELSEWHERE HE ADDED THAT HE DOESN'T HAVE ANY DISAGREEMENTS WITH MR YORK WHO HAS BEEN TERRIFIC SUCCEEDING MR KAVETAS AT IBM CREDIT WHICH FINANCES CUSTOMERS' LEASING OF IBM COMPUTERS IS JAMES J FORESE 57 IBM'S VICE PRESIDENT OF FINANCE THAT POST WON'T BE FILLED THE COMPANY SAID AND MR FORESE WILL REPORT TO MR YORK IBM CREDIT WAS CONSIDERED BY SOME TO BE A SUCCESS UNDER MR KAVETAS'S WATCH THOUGH THE UNIT'S BORROWING COSTS WERE HURT BY RECENT DOWNGRADES OF IBM'S PAPER DEBT RATING IT HAS SUSTAINED A RELATIVELY HIGH RETURN ON EQUITY BUT THERE ARE ALSO CRITICS OF IBM CREDIT WHO CONTEND THAT THE UNIT IS A TICKING TIMEBOMB BECAUSE THE EQUIPMENT THE UNIT OWNS FOR LEASE IS OVERVALUED ON IBM'S BOOKS IBM HAS CONSISTENTLY DISPUTED THAT CONTENTION MR KAVETAS'S PLANNED DEPARTURE FOLLOWS THAT OF FORMER TREASURER ROBERT RIPP 51 WHO ANNOUNCED HIS DECISION TO LEAVE SHORTLY AFTER MR YORK ASSUMED THE CFO POST AT THE TIME MR RIPP ACKNOWLEDGED THAT HE ALSO HAD HOPED TO GET THE TOP FINANCIAL JOB 9310050151 931005 BUSINESS BRIEF DAVIS PURCHASES 57 OF BALLY GAMING IN FIRST FORAY INTO GAMBLING BUSINESS INVESTOR MARVIN DAVIS HAS SCOOPED UP A 57 STAKE IN BALLY GAMING INTERNATIONAL INC IN HIS FIRST FORAY INTO THE GAMBLING BUSINESS IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION MR DAVIS SAID HE OWNS 616400 SHARES OF THE LAS VEGAS MAKER OF GAMBLING EQUIPMENT INCLUDING 185000 SHARES BOUGHT BETWEEN AUG 31 AND SEPT 3 AT 16 TO 17 EACH BALLY GAMING'S STOCK WAS QUOTED AT 1950 DOWN 50 CENTS IN NATIONAL OVERTHECOUNTER TRADING THE FILING SAID THE STAKE WAS FOR INVESTMENT PURPOSES THE GAMBLING BOOM TODAY IS SO TREMENDOUS MR DAVIS SAID IN AN INTERVIEW NOTING THAT THE SLOTMACHINE BUSINESS IS BEING BOOSTED BY GLOBAL GROWTH HE HAS BEEN HUNTING FOR INVESTMENTS IN SMALL TO MIDSIZE ENTERTAINMENT TECHNOLOGY COMPANIES AMONG OTHERS AND EARLIER THIS YEAR HIRED R RUDOLPH REINFRANK FROM ROY DISNEY'S SHAMROCK HOLDINGS TO FORM A NEW INVESTMENT PARTNERSHIP MR DAVIS'S NET WORTH IS ESTIMATED TO RANGE FROM 14 BILLION TO MORE THAN 23 BILLION BALLY GAMING WAS SPUN OFF BY BALLY MANUFACTURING CORP OF CHICAGO IN 1991 AS THE PARENT COMPANY STRUGGLED TO KEEP ITS CASINO AND HEALTHCLUB EMPIRE AFLOAT BALLY ONCE DOMINATED THE GAMBLINGMACHINE BUSINESS BUT FRITTERED AWAY ITS POSITION AS COMPETITOR INTERNATIONAL GAME TECHNOLOGY RENO NEV BECAME THE INDUSTRY POWERHOUSE AS GAMBLING FLOURISHED DURING THE 1980S THE INDUSTRY HAS ROOM FOR A STRONG NO 2 MR REINFRANK SAID OF BALLY GAMING ADDING THAT RECENT MANAGEMENT CHANGES AND ENCOURAGING RESULTS ON A NEW PRODUCT LINE SHOULD POSITION THE COMPANY FOR GROWTH BALLY GAMING OFFICIALS DIDN'T RETURN CALLS SEEKING COMMENT MOST OF THE BALLY GAMING STOCK WAS SOLD BY THE FIDELITY MUTUALFUND GROUP WHICH ACQUIRED ITS STAKE THIS SUMMER IN A STOCK SWAP WITH BALLY MANUFACTURING FIDELITY EXCHANGED EQUITY IN THE BALLY'S GRAND CASINO IN NEVADA FOR THE BALLY GAMING SHARES AND CONTINUES TO OWN AN 18 STAKE IN BALLY GAMING ACCORDING TO DAN HARMETZ WHO OVERSEES FIDELITY'S INVESTMENT IN THE COMPANY BALLY GAMING STOCK HAS RISEN IN RECENT MONTHS BASED IN PART ON TEST RESULTS FOR ITS NEW PRODUCT LINE BRUCE TURNER AN ANALYST WITH RAYMOND JAMES & ASSOCIATES NOTED THAT THE COMPANY HAS MADE PROMISING GAINS IN THE PAST YEAR OR SO BUT SAID IT MUST PROVE TO THE MARKET THAT IT CAN SHIP AND SERVICE ITS NEW PRODUCTS WELL 9310050150 931005 FEDERALMOGUL TO CLOSE FACILITY SOUTHFIELD MICH FEDERALMOGUL CORP SAID IT WILL CLOSE A MANUFACTURING FACILITY IN ITS LIGHTING AND ELECTRICAL DIVISION AND FUEL SYSTEMS DIVISION UNDER A RESTRUCTURING PLAN WILLIAM W BILKEY JR GENERAL MANAGER OF THE DIVISION SAID THE COMPANY WILL MAKE ITS DECISION BY EARLY NOVEMBER THE LOCATIONS IT IS CONSIDERING ARE IN LAFAYETTE TENN AND LOGANSPORT IND ABOUT 400 EMPLOYEES WILL BE AFFECTED FEDERALMOGUL DISTRIBUTES AND MANUFACTURES PARTS FOR CARS TRUCKS AND FARM AND CONSTRUCTION VEHICLES 9310050149 931005 SHE MIGHT APPROVE OTHER STATUES BUT NOT THE BUST OF THIS MERMAID BY PAULA L STEPANKOWSKY SPECIAL TO THE WALL STREET JOURNAL THE TOPLESS MERMAID OF LONG BEACH WASH MAY BE WASHED AWAY BY A WAVE OF FEMINISM FOR SEVEN INCIDENTFREE YEARS THE 12000 RESIDENTS OF THE SEASIDE VILLAGE HAVE GAZED FONDLY AT THEIR 12FOOT WOODEN STATUE VIEWING HER AS A CIVIC SYMBOL THE ROBUSTLY CARVED SEA MAIDEN EVEN GRACES POSTCARDS AT LOCAL SOUVENIR STANDS BUT THE BAREBREASTED MERMAID IS NOW THE TARGET OF A ONEWOMAN COVERUP CAMPAIGN LAUNCHED BY SHARON SAEI WHO MOVED TO THE AREA LAST YEAR AND HAS JUST BECOME A LONG BEACH RESIDENT SHE TOLD A CITY COUNCIL MEETING THAT SHE FOUND THE MERMAID VULGAR PORNOGRAPHIC AND INSULTING TO WOMEN EXPANDING HER THEME LATER MS SAEI SAYS THIS ISN'T THE GARDEN OF EDEN IF A WOMAN WERE WALKING AROUND LIKE THAT DOWN HERE AN OFFICER WOULD PROBABLY THROW A COAT OVER HER MS SAEI SUGGESTS THAT THE MERMAID BE FITTED WITH A BRA OR BE RECARVED TO MAKE STRATEGIC USE OF HER HAIR OR TO ADD A COUPLE OF SCALLOP SHELLS SHE WAS GOOD ENOUGH TO GIVE US A FEW ALTERNATIVES THE LAST OF WHICH WAS THAT WE SHOULD SIMPLY RIP UP THE STATUE AND BREAK IT INTO WOOD FOR PICTURE FRAMES TO BE USED FOR REAL ART SAYS NABIEL SHAWA CITY ADMINISTRATOR NO ONE CONTENDS THAT THE MERMAID IS A MASTERPIECE AS SOON AS THE ARTIST WALKED AWAY WE ALL SAID HMMM OH WELL' MR SHAWA RECALLS MS SAEI LESS DIPLOMATICALLY SAYS I DO KNOW A LOGGER I WAS HOPING HE WOULD BACK HIS TRUCK INTO IT AND HAUL IT AWAY CITY COUNCIL MEMBERS WHO MR SHAWA SAYS WERE A BIT SHOCKED BY MS SAEI'S ATTACK SAY NO ONE HAD EVER BEFORE COMPLAINED ABOUT THE MERMAID'S DISHABILLE BUT THEY TOLD MS SAEI THAT THEY WOULD CONSIDER THE MATTER IF SHE COULD GET 100 TO 200 SIGNATURES ON A PETITION AS MS SAEI TRIES TO GATHER THE SIGNATURES RESIDENTS OF LONG BEACH AND NEIGHBORING TOWNS ARE FLOODING THE LOCAL WEEKLY PAPER WITH LETTERS OF SUPPORT FOR THEIR MALIGNED MERMAID SHE'S OURS SHE'S A SYMBOL OF AN OCEANSIDE COMMUNITY SAYS PATRICIA NELSON A RESIDENT AND ONE OF THE LETTER WRITERS PUT A BRA ON IT AND IT WILL REALLY BRING PEOPLE'S ATTENTION TO IT ACTUALLY SAYS MR SHAWA SOMEONE DID DELIVER A BRA TO CITY HALL BUT THE PUBLICWORKS DIRECTOR SAYS IT WON'T FIT 9310050148 931005 WHAT'S NEWS WORLDWIDE YELTSIN'S FORCES STORMED RUSSIA'S PARLIAMENT AND HARDLINERS GAVE UP ARMY TANKS BEGAN FIRING INTO THE PARLIAMENT BUILDING JUST AFTER DAWN AND COMMANDOS RUSHED INSIDE TO CRUSH AN ARMED CHALLENGE BY OPPOSITION LAWMAKERS HUNDREDS SURRENDERED AFTER A 10HOUR BATTLE BUT SPORADIC GUNFIRE PERSISTED AND THE BUILDING REMAINED ABLAZE LAST NIGHT AS SOLDIERS PILED BODIES OUTSIDE PARLIAMENT OFFICIALS SAID THE FINAL CASUALTY FIGURE WASN'T YET KNOWN PARLIAMENT SPEAKER KHASBULATOV AND VICE PRESIDENT RUTSKOI WERE AMONG THE LAST TO GIVE UP AND WERE TAKEN TO A HIGHSECURITY PRISON YELTSIN IMPOSED AN OVERNIGHT CURFEW IN MOSCOW BANNED SOME OPPOSITION PARTIES AND SUSPENDED PUBLICATION OF SEVERAL NEWSPAPERS THAT SUPPORT PARLIAMENT US CASUALTIES JUMPED IN SOMALIA AND THE PENTAGON SENT IN MORE TROOPS AT LEAST 12 AMERICANS WERE KILLED 78 WOUNDED AND OTHERS FEARED CAPTURED IN THE FIERCEST FIGHTING SINCE THE US MISSION BEGAN IN SOMALIA THE CASUALTIES INFLICTED BY THE FORCES OF CLAN LEADER AIDID PROMPTED THE US DEFENSE DEPARTMENT TO ORDER ADDITIONAL INFANTRY AERIAL GUNSHIPS AND TANKS INTO THE COUNTRY DISTURBING PICTURES OF DEAD AND CAPTURED US SOLDIERS FILTERED BACK FROM MOGADISHU INCLUDING ONE PHOTO THAT SHOWED CHEERING SOMALIS DRAGGING THE BODY OF AN AMERICAN ON CAPITOL HILL SOME LAWMAKERS CALLED FOR US WITHDRAWAL BUT CLINTON INSISTED AMERICAN FORCES WOULD REMAIN UNTIL ORDER WAS RESTORED ASPIN DECIDED NOT TO DISMISS THE NAVY'S TOP OFFICER OVER TAILHOOK DEFENSE SECRETARY ASPIN REJECTED THE ADVICE OF THE NAVY'S CIVILIAN LEADER BY DECIDING NOT TO FIRE ADM FRANK KELSO FOR ALLEGED FAILURE OF LEADERSHIP IN THE AFTERMATH OF THE TAILHOOK SEXABUSE SCANDAL NAVY SECRETARY DALTON LAST WEEK HAD RECOMMENDED THE DISMISSAL OF KELSO THE TAILHOOK AFFAIR AROSE FROM A NAVAL AVIATORS CONVENTION TWO YEARS AGO AT WHICH SCORES OF WOMEN WERE SEXUALLY HARASSED OR ASSAULTED ASPIN'S DECISION SURPRISED SOME OFFICIALS IN WASHINGTON BECAUSE DALTON IS A CLINTON APPOINTEE AND THIS WAS HIS FIRST MAJOR DECISION SINCE ASSUMING THE POST THE RANKS OF POOR AMERICANS SWELLED 12 MILLION TO 369 MILLION LAST YEAR THE CENSUS BUREAU SAID IN ADDITION THE NUMBER OF AMERICANS WITHOUT HEALTH INSURANCE ROSE ABOUT TWO MILLION TO 374 MILLION IN 1992 REPRESENTING AN INCREASE IN THE NUMBER OF UNINSURED TO 147 OF THE POPULATION FROM 141 IN 1991 THE US WILL FORGO TRADE SANCTIONS AGAINST NORWAY FOR ITS RESUMPTION OF COMMERCIAL WHALING BUT WILL TRY TO PERSUADE THAT COUNTRY TO HALT THE ACTIVITY PRESIDENT CLINTON SAID HE SAID THE ADMINISTRATION WILL PREPARE A LIST OF PRODUCTS THAT COULD BE TARGETED FOR SANCTIONS IF NORWAY CONTINUES TO VIOLATE AN INTERNATIONAL WHALING BAN HOUSE GOP LEADER ROBERT MICHEL SAID HE WOULD RETIRE AT THE END OF NEXT YEAR AFTER 38 YEARS IN CONGRESS 14 OF THEM AS THE MINORITY LEADER THE ILLINOIS REPUBLICAN'S ANNOUNCEMENT IGNITED AN IMMEDIATE RACE FOR A SUCCESSOR AND NEWT GINGRICH OF GEORGIA THE DEPUTY GOP LEADER EMERGED AS THE EARLY FRONTRUNNER A FEDERAL PROSECUTOR ALLEGED THAT FOUR MUSLIM FUNDAMENTALISTS ACCUSED OF BOMBING THE WORLD TRADE CENTER WERE PART OF A WAR OF TERRORISM AGAINST THE US AND WOULD KILL AGAIN HE SPOKE AS THE FOUSUSPECTS WENT ON TRIAL IN NEW YORK IN CONNECTION WITH THE FEB 26 BOMBING A PALESTINIAN CAR BOMBER RAMMED THE SIDE OF AN ISRAELI COMMUTER BUS IN THE OCCUPIED WEST BANK DYING IN THE EXPLOSION THAT WOUNDED 30 ISRAELIS MILITARY OFFICIALS SAID THE SUICIDE BOMBER WAS A WANTED MEMBER OF THE MUSLIM FUNDAMENTALIST GROUP HAMAS WHICH OPPOSES THE ISRAELIPLO PEACE ACCORD REACHED IN AUGUST THREE WHITE EXTREMISTS PLEADED NOT GUILTY IN JOHANNESBURG TO CHARGES OF MURDERING SOUTH AFRICAN BLACK ACTIVIST CHRIS HANI IN APRIL AND PLOTTING TO KILL NELSON MANDELA AND OTHER BLACK LEADERS SEPARATELY POLICE SAID AT LEAST 43 PEOPLE DIED IN WEEKEND CLASHES IN NATAL PROVINCE AND BLACK TOWNSHIPS NEAR JOHANNESBURG NINE PEOPLE WERE KILLED AS RIVAL MUSLIM FORCES CLASHED IN THE BIHAC ENCLAVE OF NORTHWEST BOSNIA THE LOCAL GOVERNMENT ARMY CHIEF SAID MEANWHILE FIGHTING BETWEEN CROATS AND MUSLIMS WORSENED IN KISELJAK ABOUT 20 MILES FROM SARAJEVO 9310050146 931005 LAW JUSTICES DUCK WEIGHTY BUSINESS ISSUES CRITICS CHARGE BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IS THE SUPREME COURT WHICH BEGAN A NEW TERM YESTERDAY DUCKING CASES INVOLVING WEIGHTY LEGAL PROBLEMS AFFECTING BUSINESS SOME BUSINESS ADVOCATES THINK SO AS THE JUSTICES HAVE CUT BACK ON THE NUMBER OF CASES THEY HEAR THEY LEAVE OPEN IMPORTANT QUESTIONS OF NATIONAL SIGNIFICANCE TO THE BUSINESS COMMUNITY SAYS KENNETH STARR A FORMER FEDERAL JUDGE WHO NOW REPRESENTS CORPORATE CLIENTS ISSUES GETTING INADEQUATE ATTENTION BUSINESS LAWYERS SAY INCLUDE PUNITIVE DAMAGE AWARDS IN CIVIL LAWSUITS WHICH MANY IN BUSINESS CONSIDER EXCESSIVE AND GOVERNMENT'S IMPOSITION OF COSTLY LANDUSE REGULATIONS WITHOUT COMPENSATING PROPERTY OWNERS THERE REALLY IS A NEED FOR MORE BROAD GUIDANCE IN THOSE AREAS SAYS ALAN SLOBODIN OF THE PROBUSINESS WASHINGTON LEGAL FOUNDATION SOME CRITICS QUESTION THE HIGH COURT'S PRIORITIES IN CHOOSING CASES MR STARR SAYS THE COURT HAS A STRANGE FASCINATION WITH FACTUALLY INTRIGUING BUT LEGALLY TRIVIAL CASES EXHIBIT A THIS TERM'S COPYRIGHT CASE INVOLVING 2 LIVE CREW'S RAP PARODY OF ROY ORBISON'S OH PRETTY WOMAN PARTLY TO BLAME SOME BUSINESS LAWYERS SAY IS THE JUSTICES' INCREASING DEPENDENCE ON A POOL OF YOUNG LAW CLERKS TYPICALLY RECENT TOP LAW SCHOOL GRADUATES TO SORT THROUGH THE APPEALS THE CLERKS ARE ATTRACTED TO DISPUTES INVOLVING INTERESTING CHARACTERS THE LAWYERS SAY AND OFTEN DON'T RECOGNIZE THE IMPORTANCE OF ISSUES AFFECTING CORPORATE AMERICA THE JUSTICES DON'T EXPLAIN WHY THEY REJECT PARTICULAR APPEALS AND HAVEN'T SAID PUBLICLY WHY THEY HAVE TRIMMED THEIR CASELOAD WHATEVER THE REASON THOUGH THE DECLINE IN DOCKET SIZE HAS BEEN STRIKING IN EACH OF THE PAST TWO TERMS THE JUSTICES HAVE DECIDED JUST 107 CASES THAT COMPARES WITH A PEAK OF 151 A YEAR IN THE EARLY 1980S YESTERDAY THE JUSTICES ADDED NINE CASES FOR THIS TERM BRINGING THE TOTAL SO FAR TO 56 WHICH WILL BE SUPPLEMENTED PERIODICALLY IN COMING MONTHS AMONG THE BUSINESSRELATED APPEALS DENIED REVIEW WAS ONE RAISING THE QUESTION OF WHETHER AIRCRASH VICTIMS MAY SUE MANUFACTURERS OF PLANES LONG APPROVED BY FEDERAL SAFETY REGULATORS OF COURSE ANYBODY WHOSE APPEAL ISN'T BEING HEARD THINKS THE COURT ISN'T HEARING ENOUGH CASES BUT BUSINESS ADVOCATES ARE AMONG THE MOST OUTSPOKEN PARTLY BECAUSE RIGHTLY OR WRONGLY THEY THINK THAT A CONSERVATIVE COURT WOULD GO BUSINESS'S WAY IF IT TOOK THEIR CASES CIVIL LIBERTARIANS WHO COULD LOSE GROUND WITH THE CURRENT COURT ARE LESS UPSET A DECADE AGO THE JUSTICES WERE COMPLAINING ABOUT BEING OVERWORKED IN FACT FROM THE 1970S THROUGH THE MID1980S LEGAL SCHOLARS AND SOME JUSTICES DISCUSSED THE POSSIBILITY OF CREATING A SUBSUPREME COURT THAT WOULD RELIEVE THE TOP COURT OF CERTAIN MORE TECHNICAL TYPES OF CASES BUT TODAY HIGH COURT STAFFERS JOKE ABOUT HAVING TOO FEW CASES TO FILL THE ORAL ARGUMENT CALENDAR FOUR ARGUMENTS A DAY USED TO BE THE NORM NOW THERE ARE TWO OR THREE AND SOME ARGUMENT DAYS ARE CANCELED ABOUT THREE DOZEN ARGUMENT DAYS ARE SCHEDULED FOR THIS TERM ONE REASON THE DOCKET HAS SHRUNK IS A LAW ENACTED IN 1988 THAT GAVE THE HIGH COURT NEARLY TOTAL DISCRETION OVER WHICH CASES TO HEAR BY ELIMINATING MOST CATEGORIES OF SOCALLED OBLIGATORY APPEALS SO EVEN AS THE NUMBER OF APPEALS HAS CLIMBED STEADILY TO MORE THAN 6000 A TERM THE JUSTICES HAVE BEEN ABLE TO REJECT A HIGHER PERCENTAGE OF THEM ANOTHER POSSIBLE FACTOR IN THE DECLINE IS THAT THE MOSTLY CONSERVATIVE REPUBLICAN JUSTICES HAVE FOUND THEMSELVES LARGELY IN AGREEMENT WITH DECISIONS BY LOWER FEDERAL COURTS NOW DOMINATED BY REAGAN AND BUSH APPOINTEES THE GOP LOWERCOURT JUDGES HAVE A FEEL FOR WHAT THE RHYTHMS ARE AT THE SUPREME COURT SAYS LAWYER MARK EVANS WHO EDITS A NEWSLETTER ON THE HIGH COURT DOCKET PUBLISHED BY HIS WASHINGTON LAW FIRM MILLER & CHEVALIER THE MOST CONSERVATIVE WING OF THE CURRENT COURT CHIEF JUSTICE WILLIAM REHNQUIST ANTONIN SCALIA AND CLARENCE THOMAS ALSO OPENLY TAKE PRIDE IN SEEING THE JUDICIARY PULL BACK FROM SOCIAL CONTROVERSIES THEY WANT TO SEND A SIGNAL THAT BOTH INDIVIDUALS AND COMPANIES SHOULD SEEK RELIEF FROM LEGISLATORS OR THE EXECUTIVE BRANCH CHIEF JUSTICE REHNQUIST'S ADMINISTRATIVE STYLE MAY ALSO BE A FACTOR A STICKLER FOR EFFICIENCY HE PUSHES FOR QUICK VOTES IN THE JUSTICES' PRIVATE CONFERENCES WHERE IT TAKES THE AGREEMENT OF FOUR MEMBERS TO HEAR A CASE PRESSED TO DECIDE PROMPTLY SOME JUSTICES ARE INCLINED TO DENY APPEALS IN CASES THEY MAY NOT HAVE THOUGHT THROUGH THOROUGHLY ONE REASON THE JUSTICES SOMETIMES ARE UNFAMILIAR WITH CASES AT THIS STAGE IS THAT THEY HAVE SHIFTED THE CULLING PROCESS TO THEIR CLERKS WILLIAM BRENNAN WHO RETIRED IN 1990 WAS THE LAST JUSTICE WHO PERSONALLY TOOK AT LEAST A GLANCE AT EACH APPEAL AS IT ARRIVED AT THE COURT ABOUT 20 YEARS AGO SOME OF THE JUSTICES BEGAN DELEGATING THE OFTENTEDIOUS SCREENING OF APPEALS TO CLERKS ONE CLERK WRITES A POOL MEMO SUMMARIZING THE CASE AND INDICATING WHETHER THE JUSTICES SHOULD REVIEW IT THE MEMO IS THEN CIRCULATED AMONG ALL OF THE CHAMBERS SOME JUSTICES HAVE THEIR OWN CLERKS ADD BRIEF ADDITIONAL COMMENTS BEFORE THEMSELVES PERUSING A TINY FRACTION OF THE APPEALS TODAY ONLY JUSTICE STEVENS ABSTAINS FROM PARTICIPATION IN THE POOL ALTHOUGH EVEN HE DIVIDES THE JOB OF SIFTING THROUGH THE APPEALS WITH HIS CLERKS JUSTICE RUTH BADER GINSBURG JOINED THE POOL WHEN SHE BEGAN WORK THIS SUMMER SOME FORMER LAW CLERKS CONFIRM THAT NEOPHYTE ATTORNEYS TEND TO PAY TOO MUCH ATTENTION TO CASES INVOLVING TOPICS OF PERSONAL INTEREST OR PROVOCATIVE ISSUES THAT INVOLVE RELATIVELY NARROW LEGAL PRINCIPLES OTHERWISE THE MAIN DISTORTION CAUSED BY THE POOL PROCESS IS THAT WHEN IN DOUBT CLERKS RECOMMEND AGAINST HEARING A CASE THE WORST NIGHTMARE FOR A CLERK IS TO ADVISE THAT AN APPEAL BE HEARD AND THEN HAVE THE CASE WASH OUT BECAUSE OF A PROCEDURAL SNAFU CONTRARY TO WHAT SOME BUSINESS ADVOCATES LIKE MR STARR ARGUE THOUGH IT'S POSSIBLE THAT IF THE JUSTICES AGREED TO HEAR MORE BUSINESS CASES THEY WOULD MAKE THINGS MORE CONFUSING NOT LESS PUNITIVE DAMAGES AND LANDUSE REGULATION ARE GOOD EXAMPLES IN RECENT YEARS THE JUSTICES HAVE ISSUED A FEW DECISIONS IN THESE AREAS BUT NOT THE SWEEPING PROBUSINESS RULINGS CORPORATE ADVOCATES DESIRE IF ANYTHING THE CURRENT COURT'S TENDENCY TO PRODUCE SPLINTERED DECISIONS WITH MULTIPLE OPINIONS HAS ADDED TO THE MURKINESS LAST TERM FOR EXAMPLE THE COURT REITERATED THAT THERE IS SOME UPWARD LIMIT THAT FORBIDS PUNITIVE AWARDS THAT ARE UNREASONABLE BUT GAVE NO HINT AS TO WHERE THAT LINE MIGHT BE AS ALAN HOROWITZ WHO WORKS WITH MR EVANS ON THE MILLER & CHEVALIER NEWSLETTER SAYS THE TAX PEOPLE AT THE FIRM SAY THAT MORE TAX DECISIONS DON'T NECESSARILY MEAN MORE CLARITY 9310050145 931005 QUARTERLY MUTUAL FUNDS REVIEW TIME TO TALK TURKEY FUND ZIGZAGS ITS WAY TO THE TOP BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TURKISH INVESTMENT FUND USED TO BE A TURKEY BUT NOW IT'S FLYING HIGH THE 72 MILLION CLOSEDEND COUNTRY FUND HAS OUTPERFORMED ALL OTHERS OF ITS TYPE THROUGH THE THIRD QUARTER A LOOK AT THE FUND SHOWS THE REWARDS AND PITFALLS OF INVESTING IN THESE ODD BEASTS WHICH TRADE LIKE ORDINARY STOCKS ALTHOUGH THEY ARE REALLY INVESTMENT FUNDS AFTER THREE SORRY YEARS THE FUND'S SHARES HAVE ALMOST DOUBLED SINCE THE START OF THE YEAR TO A RECENT PEAK NEAR 1050 ON THE NEW YORK STOCK EXCHANGE THE STOCK DIDN'T RISE QUITE AS FAST AS THE VALUE OF THE FUND'S SECURITIES BUT AT LEAST THE STOCK AND THE PORTFOLIO VALUE AREN'T TOO FAR APART THAT'S THE WAY IT IS WITH PUBLICLY TRADED COUNTRY FUNDS WHICH INVEST IN THE STOCKS OF A PARTICULAR COUNTRY THESE OFTENVOLATILE FUNDS LIVE AND DIE WITH A COUNTRY'S ECONOMIC AND POLITICAL PROSPECTS THE TURKEY FUND WHICH PLUNGED AFTER NEIGHBOR IRAQ'S INVASION OF KUWAIT IN 1990 IS RIDING THE TURKISH MARKET'S 1993 RESURGENCE IN THE FACE OF PERSISTENT INFLATION PROBLEMS THE PROSPECT FOR MIDEAST PEACE HASN'T HURT THINGS REALLY STARTED GETTING BETTER FUNDAMENTALLY WHEN THE NEW GOVERNMENT CAME IN IN OCTOBER '91 SAYS 26YEAROLD PETER BENNETT WHO RUNS THE FUND FOR MORGAN STANLEY ASSET MANAGEMENT IN LONDON HOWEVER THAT DIDN'T FEED THROUGH INTO HIGHER CORPORATE EARNINGS GROWTH UNTIL THE END OF '92 THE TURKISH MARKET ALSO HAS BENEFITED FROM DECLINING INTEREST RATES AND TAX INCENTIVES FOR INSTITUTIONAL FUNDS THAT BOOST THEIR STOCKHOLDINGS AFTER THE MARKET'S THREE BAD YEARS IT'S BEEN QUITE A PLEASURE TO WATCH IT RUN SAYS MR BENNETT HE ARGUES THAT THE TURKISH MARKET IS STILL CHEAP WITH PRICES AT ONLY 125 TIMES 1993 PROSPECTIVE EARNINGS ISTANBUL STOCKBROKERS EXPECT THE ECONOMY TO GROW MORE THAN 8 THIS YEAR A BIT MORE OPTIMISTIC THAN GOVERNMENT PROJECTIONS OF 65 SAYS MR BENNETT I CAN STILL FIND STOCKS TO BUY AFTER THE MARKET HAS RISEN BY OVER 150 IN US DOLLAR TERMS YOU DON'T ALWAYS FIND THAT IN WORLD MARKETS COUNTRYFUND ANALYSTS CAUTION THAT THE TURKEY FUND REMAINS A HIGHLY SPECULATIVE INVESTMENT TURKEY'S LINGERING ECONOMIC PROBLEMS COULD CAST A SHADOW OVER ITS FUTURE WRITES GREGG WOLPER OF MORNINGSTAR CLOSEDEND FUNDS IN CHICAGO IN A RECENT REPORT ONE GOOD THING MR WOLPER ADDS IN AN INTERVIEW IS THAT THE FUND NO LONGER TRADES AT A HIGH PREMIUM TO THE VALUE OF ITS ACTUAL HOLDINGS SUCH PREMIUMS ARE UNDESIRABLE WITH ANY CLOSEDEND FUND STILL HE SAYS EVEN THOUGH THE FUND HASN'T BEEN HURT SO FAR I'M ALWAYS WORRIED WHEN THE AVERAGE INVESTOR IS LOOKING AT A FUND THAT HAS GONE UP 90 YEARTODATE THEY SHOULDN'T EXPECT THAT SORT OF PACE TO CONTINUE MR BENNETT REMAINS OPTIMISTIC HE SAYS HE IS ALMOST FULLY INVESTED IN THE TURKISH MARKET WITH ABOUT 95 OF THE FUND'S ASSETS INVESTED IN A TOTAL OF 23 STOCKS THERE ARE ONLY 152 STOCKS TO CHOOSE FROM IN THE TURKISH MARKET THOUGH THAT'S MORE THAN DOUBLE THE LEVEL WHEN THE FUND WAS LAUNCHED IN 1989 WITH CONSUMER INFLATION RUNNING AT 70 MR BENNETT SAYS HE STICKS TO COMPANIES THAT HAVE PRICING POWER THOSE ABLE TO RAISE PRICES FASTER THAN THE INFLATION RATE MANY HAVE STRANGE COMBINATIONS OF BUSINESSES FOR EXAMPLE MR BENNETT'S TOP HOLDING IS DOGAN HOLDING WHICH OWNS BOTH NEWSPAPERS AND AUTO DEALERSHIPS HE BOUGHT 1 MILLION OF THE STOCK IN JUNE WHICH QUICKLY EXPANDED TO AN INVESTMENT OF 6 MILLION HE ALSO HOLDS OTHER AUTORELATED STOCKS GOODYEAR LARTIK AND GASSTATION OWNER TURCAS PETROLCULUK THE NUMBER OF CARS SOLD IN TURKEY ROSE 30 LAST YEAR MR BENNETT SAYS HE REMAINS VERY OPTIMISTIC ON BREWERS EGE BIRACILIK AND GUNEY BIRACILIK WHICH USED TO BE HIS TWO BIGGEST HOLDINGS AND REMAIN IN THE PORTFOLIO POTENTIAL RIVAL BREWERS FROM ABROAD AREN'T SO SURE ABOUT EXPANDING IN A MUSLIM COUNTRY 9310050143 931005 QUARTERLY MUTUAL FUNDS REVIEW MONEY FUND YIELDS TO REMAIN IN TROUGH BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL MONEYMARKET FUND YIELDS MAY HAVE FINALLY REACHED BOTTOM BUT THAT DOESN'T MEAN THEY'RE GOING TO MOVE UP ANY TIME SOON FOR THE NEXT THREE OR FOUR MONTHS SHORTTERM INTEREST RATES ARE WHERE THEY ARE SAYS WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER IT WON'T BE UNTIL THE MIDDLE OF THE FIRST QUARTER OF NEXT YEAR THAT YIELDS WILL BEGIN TO RISE YIELDS ON TAXABLE MONEY FUNDS HARDLY BUDGED DURING THE THIRD QUARTER WITH ONLY TINY WEEKTOWEEK VARIATIONS THE AVERAGE YIELD ON FUNDS OPEN TO INDIVIDUAL INVESTORS WAS 255 FOR THE THREE MONTHS COMPARED WITH 254 FOR THE SECOND QUARTER A YEAR EARLIER THE AVERAGE WAS 301 ALL MONEYFUND YIELDS ARE EXPRESSED ON AN ANNUALIZED BASIS PORTFOLIO MANAGERS CLEARLY DON'T EXPECT SHORTTERM RATES TO TURN UPWARD SOON AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS ENDED THE QUARTER AT A FAIRLY LONG 63 DAYS WHERE IT HAS BEEN FOR SIX WEEKS MOST OF THE TOPYIELDING FUNDS FOR THE QUARTER HAD LONGERTHANAVERAGE MATURITIES A SIGN THAT PORTFOLIO MANAGERS WERE BUYING LONGERTERM SECURITIES TO BOOST YIELD THE TWO FUNDS THAT HAVE SHORTERTHANAVERAGE MATURITIES HAVE EXISTED FOR LESS THAN A YEAR SECURITIES AND EXCHANGE COMMISSION REGULATIONS LIMIT MONEY FUNDS TO A MAXIMUM AVERAGE MATURITY OF 90 DAYS THE HIGH OF 66 DAYS FOR ALL TAXABLE FUNDS WAS REACHED IN THE FIRST QUARTER OF THIS YEAR THE FUNDS INVEST IN TREASURY BILLS COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND A VARIETY OF OTHER SECURITIES THAT MATURE IN A YEAR OR LESS ASSETS WERE STABLE IN THE PAST THREE MONTHS ASSETS OF TAXABLE FUNDS OPEN TO INDIVIDUALS ENDED THE QUARTER AT 30549 BILLION COMPARED WITH 30514 BILLION AT THE END OF THE SECOND QUARTER AND 3142 BILLION A YEAR EARLIER THE STEADY BLEED OF THE LAST FEW YEARS APPEARS TO BE OVER SAYS EDWARD WIESE PORTFOLIO MANAGER OF T ROWE PRICE ASSOCIATES' PRIME RESERVE FUND WHICH HAD ASSETS OF ABOUT 34 BILLION AT THE END OF THE QUARTER COMPARED WITH NEARLY 38 BILLION A YEAR EARLIER SOME PORTFOLIO MANAGERS EXPECT CASH TO START FLOWING BACK INTO MONEY FUNDS IN THE NEXT FEW MONTHS AMID UNCERTAINTY ABOUT THE STOCK AND BOND MARKETS UNLIKE STOCK AND BOND MUTUAL FUNDS WHOSE NET ASSET VALUE FLUCTUATES WITH MARKET VARIATIONS MONEY FUNDS ARE STRUCTURED SO THEIR NET ASSET VALUE REMAINS AT 1 A SHARE AND ONLY THE YIELD CHANGES THEY ARE CONSIDERED AMONG THE SAFEST INVESTMENTS INDEED A LETTER FROM FIDELITY INVESTMENTS PRESIDENT EDWARD C JOHNSON III INCLUDED IN BONDFUND ANNUAL REPORTS ADVISES SHAREHOLDERS THAT IT MAY BE SENSIBLE TO REVIEW YOUR BONDFUND INVESTMENT BECAUSE OF THE RISKS ASSOCIATED WITH AN INCREASE IN INTEREST RATES THE LETTER NOTES THAT WHEN INTEREST RATES RISE THE MARKET VALUE OF BOND HOLDINGS FALLS WHICH CUTS THE TOTAL RETURN ON BOND INVSTMENTS INVESTORS HAVE POURED BILLIONS OF DOLLARS A MONTH INTO STOCK AND BOND FUNDS IN RECENT YEARS AND ENJOYED CONSIDERABLE APPRECIATION OF THEIR INVESTMENTS SAYS NEAL LITVACK EXECUTIVE VICE PRESIDENT OF FIDELITY IT MAY BE TIME TO TAKE A BREATHER FOR MANY INVESTORS WHO CHOOSE MONEY FUNDS TAXFREE FUNDS CURRENTLY LOOK MORE ATTRACTIVE THAN TAXABLE FUNDS THAT'S ESPECIALLY TRUE FOR THOSE THROWN INTO THE 36 AND 396 TAX BRACKETS BY THIS YEAR'S TAX LAW TAXFREE MONEY FUNDS HAD AN AVERAGE YIELD OF 223 AT THE END OF THE THIRD QUARTER WHICH TRANSLATES INTO A TAXABLE EQUIVALENT YIELD OF 348 FOR AN INVESTOR IN THE 36 BRACKET AND 369 FOR SOMEONE PAYING 396 IN TAXES YIELDS ON TAXFREE FUNDS TEND TO BE MORE VOLATILE THAN THOSE ON TAXABLE FUNDS BECAUSE OF FLUCTUATIONS IN THE SUPPLY OF SHORTTERM MUNICIPAL SECURITIES THAT TAXEXEMPT FUNDS BUY 9310050141 931005 INTERNATIONAL JAPAN'S AUTO MAKERS FAULT BIG THREE FOR NOT DOING ENOUGH TO BOOST EXPORTS BY YUMIKO ONO AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN'S AUTO INDUSTRY A PERENNIAL TARGET OF US TRADE COMPLAINTS IS BASHING BACK JAPANESE CAR MAKERS FOR THE FIRST TIME ISSUED A REPORT LAMBASTING THE BIG THREE'S EFFORTS TO BREAK INTO THE JAPANESE MARKET FACED WITH US DEMANDS TO SET OBJECTIVE CRITERIA TO BOOST IMPORTS THE JAPANESE INDUSTRY IS DEMANDING THAT DETROIT SET ITS OWN QUANTIFIABLE BENCHMARKS TO BOOST EXPORTS AN INDUSTRY SPOKESMAN SUGGESTED THAT THE BIG THREE MIGHT MEASURE THEIR SALES PROMOTION EFFORTS OR THE NUMBER OF OFFICES THEY KEEP IN JAPAN JAPANESE EXECUTIVES ALSO RAISED THE POSSIBILITY THEY WON'T MEET PREVIOUSLY SET GOALS FOR PURCHASING US AUTO PARTS LARGELY BECAUSE OF JAPAN'S DETERIORATING ECONOMY IN THE REPORT THE JAPANESE SUGGESTED THAT US AUTO MAKERS AREN'T TRYING HARD ENOUGH TO SUCCEED IN THE JAPANESE MARKET I CAN ONLY THINK THAT THE US MAKERS DON'T HAVE THE CARS TO BRING TO JAPAN YET SAID YUTAKA KUME CHAIRMAN OF THE JAPAN AUTOMOBILE MANUFACTURERS ASSOCIATION I CAN UNDERSTAND THEIR IRRITATION FOR NOT BEING ABLE TO SELL AMERICAN CARS HERE BUT I HOPE THEY'D TAKE A MORE OBJECTIVE LOOK AT THE REASONS HE SAID HE SAID US MAKERS SHOULD CONSIDER SELLING CARS WITH SMALLER ENGINES TO SUIT JAPANESE TASTES AND LOWERING PRICES THE CAR INDUSTRY'S OFFENSIVE COMES AMID A SWIRLING TRADE DEBATE IN WHICH THE US AND JAPAN OFTEN SEEM TO BE SWITCHING LONGACCUSTOMED ROLES JAPANESE BUREAUCRATS SAY THEY ARE INCREASINGLY WORRIED THE CLINTON ADMINISTRATION IS BACKING AWAY FROM YEARS OF US TRADE DOCTRINE EMBRACING MORE OF THE VERY PRACTICES THE WHITE HOUSE HAS LONG TOLD JAPAN TO DROP FOR MONTHS THE JAPANESE HAVE COMPLAINED ABOUT US MOVES TOWARD MANAGED TRADE IN RECENT DAYS WASHINGTON HAS BEEN TALKING OF GOVERNMENTINDUSTRY RESEARCH CONSORTIA THAT EXCLUDE FOREIGN COMPANIES AND MAKING AID TO DEVELOPING COUNTRIES CONTINGENT ON THOSE NATIONS' BUYING US GOODS THERE IS SOME CONCERN ON OUR PART THAT THE US IS DEPARTING FROM SOME OF THE VALUES THAT IT HAS BEEN PROMOTING IN THE WORLD THAT MADE IT A WORLD LEADER SAID AN OFFICIAL AT THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY WE HOPE THAT ISN'T THE CASE THE JAPANESE STILL CONCEDE THEY NEED TO DO MORE TO OPEN THEIR MARKET TO IMPORTS BUT MANY ARGUE THEY SHOULD STOP SIMPLY RESPONDING TO GAIATSU OR FOREIGN PRESSURE PRIME MINISTER MORIHIRO HOSOKAWA SAID RECENTLY THAT JAPAN'S ECONOMY SHOULD BECOME MORE IMPORTFRIENDLY BECAUSE THAT WOULD BE GOOD FOR JAPANESE CONSUMERS NAIATSU OR DOMESTIC PRESSURE IS BECOMING A POPULAR BUZZWORD ON THURSDAY MR HOSOKAWA IS SCHEDULED TO UNVEIL A WIDERANGING IMPORT PLAN THE SPECIFIC POLICIES ARE EXPECTED TO BE VERY SIMILAR TO OTHER IMPORTENHANCING PROPOSALS ADOPTED OVER THE PAST DECADE SUCH AS TAX CREDITS FOR FOREIGN GOODS AND DEREGULATION WHICH HAD LITTLE NOTICEABLE SUCCESS AN EARLY TEST OF MR HOSOKAWA'S RESOLVE WILL COME IN A FLURRY OF BILATERAL TRADE TALKS THIS MONTH THE TWO COUNTRIES ARE STEPPING UP THE PACE OF NEGOTIATIONS TO BUILD A COMPREHENSIVE FRAMEWORK GOVERNING USJAPAN TRADE BY EARLY NEXT YEAR THE US HAS BEEN DISAPPOINTED WITH THE PROGRESS SO FAR ONE OF THE FRAMEWORK'S MAIN PRIORITIES IS REDUCING THE HUGE IMBALANCE IN AUTO AND AUTO PARTS TRADE AND THE NEXT ROUND OF TALKS IS TENTATIVELY SCHEDULED FOR OCT 20 IN TOKYO THE US ARGUES THAT THE MAIN PROBLEMS ARE BARRIERS IN THE JAPANESE AUTO MARKET AND THE JAPANESE AUTO INDUSTRY'S UNWILLINGNESS TO BUY FOREIGN GOODS BUT YESTERDAY THE AUTO ASSOCIATION'S MR KUME WHO ALSO IS CHAIRMAN OF NISSAN MOTOR CO TURNED THE TABLES SAYING THE BIG THREE AREN'T DOING THEIR MARKETING HOMEWORK HOLDING UP A BOOKLET FILLED WITH CHARTS MR KUME LISTED REASONS THE BIG THREE COMPANIES ARE STUCK WITH A MODEST 8 SHARE OF JAPAN'S MARKET FOR IMPORTED CARS FOR INSTANCE US CAR ENGINES ARE TOO BIG ACCORDING TO THE REPORT THE OVERWHELMINGLY DOMINANT SECTOR OF THE JAPANESE MARKET IS CARS WITH A 2000 CUBICCENTIMETER ENGINE DISPLACEMENT OR SMALLER IT SAID GERMAN MANUFACTURERS SELL MANY SUCH CARS HERE IT SAID IT CLAIMED THAT THE AMERICANS DON'T OFFER ANY BIG THREE CARS ARE OVERPRICED THE REPORT CONTINUES AND JAPANESE DEALERS THINK THEY AREN'T SUITED TO JAPANESE ROADS NEARLY 70 OF JAPANESE CONSUMERS DON'T WANT TO PURCHASE BIG THREE CARS AT ALL ACCORDING TO THE REPORT WHILE INDEPENDENT ANALYSTS VIEW THE AUTO INDUSTRY'S POINTS AS GENERALLY ACCURATE THEY ADD THAT US NEGOTIATORS ARE BOUND TO STRIKE BACK WITH A SET OF ARGUMENTS AGAINST THE JAPANESE REASONING AND STRAINS COULD GROW JAPAN'S CONTINUING RECESSION CHALLENGES CAR MAKERS' EARLIER PLEDGE TO BUY 19 BILLION OF USAUTO PARTS IN THE YEAR BEGINNING NEXT APRIL WHILE THE PACT IS VOLUNTARY AND ISN'T AN OFFICIAL GOVERNMENT COMMITMENT FAILURE TO REACH THE TARGET WOULD BE A SETBACK SOME US CARCOMPANY SPOKESMEN IN JAPAN SAID THEY WERE PERPLEXED BY THE REPORT A SPOKESMAN SAID FORD MOTOR CO HOPES TO NEARLY DOUBLE SALES IN JAPAN FROM LAST YEAR'S 3400 UNITS AFTER LOWERING PRICES OF NUMEROUS MODELS AND FINDING A NICHE MARKET FOR STATION WAGONS THE CLINTON ADMINISTRATION LAST WEEK MADE TWO OTHER MOVES THAT WORRY THE JAPANESE TO GIVE DETROIT A BOOST IT ANNOUNCED A JOINT GOVERNMENTUS INDUSTRY EFFORT TO DEVELOP CLEAN FUELEFFICIENT CARS SOME JAPANESE SAW IRONY IN THE MOVE FOR YEARS JAPANESE GOVERNMENT AND INDUSTRY WORKED CLOSELY TO DEVELOP TECHNOLOGIES AND OVERTAKE US COMPETITORS THEY WERE SO SUCCESSFUL THAT THE US GOVERNMENT DECLARED THE RESEARCH UNFAIR AND DEMANDED THAT JAPAN OPEN THE PROJECTS TO FOREIGN PARTICIPATION IN RECENT YEARS THE JAPANESE GOVERNMENT HAS RECRUITED US PARTICIPANTS FOR CONSORTIA IN ADVANCED MANUFACTURING SYSTEMS NEXTGENERATION COMPUTING AND AIRCRAFT PARTS WHITE HOUSE OFFICIALS ALSO LAST WEEK RAISED THE POSSIBILITY OF TYING SOME FOREIGN AID TO US EXPORTS THAT'S A PRACTICE FOR WHICH WASHINGTON LONG HAS CHIDED JAPAN THE JAPANESE GOVERNMENT ACTING ON US PRESSURE CLAIMS IT HAS ELIMINATED VIRTUALLY ALL TIES BETWEEN JAPANESE PRIVATE BUSINESS AND AID TO DEVELOPING COUNTRIES THIS IS A CAUSE FOR CONCERN IT'S AGAINST WHAT HAS BEEN DISCUSSED WITHIN THE INTERNATIONAL COMMUNITY SAID A SENIOR JAPANESE FOREIGN MINISTRY OFFICIAL 9310050140 931005 COMMODITIES GRAIN FUTURES DECLINE ON THE ABSENCE OF FREEZE OVER WEEKEND FAST PROGRESS OF SOYBEAN HARVEST BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE ABSENCE OF THE HARD FREEZE OVER THE WEEKEND THAT MANY FORECASTERS HAD EXPECTED AND THE RAPID PROGRESS OF THE SOYBEAN HARVEST CONTINUED TO DEPRESS GRAIN FUTURES PRICES AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR NOVEMBER DELIVERY WERE DOWN 13 CENTS TO 605 A BUSHEL WHILE THE ACTIVELY TRADED DECEMBER CORN FUTURES CONTRACT DECLINED 575 CENTS TO 237 A BUSHEL WHEN THE WEEKEND FREEZE EVENT DIDN'T HAPPEN THE MARKET JUST KIND OF HIT A MELTDOWN SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO MEANWHILE HE SAID THE HARVEST OF THE SOYBEAN CROP CONTINUED QUICKLY THROUGHOUT THE MIDWEST WITH FARMERS IN MANY AREAS REPORTING BETTERTHANEXPECTED YIELDS IN INDIANA FOR INSTANCE THE US AGRICULTURE DEPARTMENT HAS PROJECTED A RECORD AVERAGE YIELD OF 47 BUSHELS OF SOYBEANS AN ACRE EARLY REPORTS SUGGEST THAT THIS HIGH YIELD PROJECTION IS REALISTIC MR BASSE SAID MANY FARMERS IN INDIANA HE SAID APPEAR TO HAVE USED A NEW DRILL METHOD OF PLANTING THAT MAXIMIZES YIELDS BY PLANTING THEM CONTINUOUSLY ACROSS A FIELD RATHER THAN IN ROWS FOR THE NATION THE AGRICULTURE DEPARTMENT HAS FORECAST A SOYBEAN YIELD OF 34 BUSHELS AN ACRE COMPARED WITH 386 BUSHELS AN ACRE LAST YEAR WEAK YIELDS IN CERTAIN AREAS OF IOWA AND MINNESOTA WHERE CROPS WERE STUNTED BY HEAVY SUMMER RAINS WILL DRAW DOWN THE NATIONAL AVERAGE ANALYSTS SAID FARMERS IN THE EASTERN CORN BELT ARE NOW TAKING ADVANTAGE OF FAVORABLE DRY WEATHER TO COMPLETE THEIR HARVEST QUICKLY IN SOUTHERN ILLINOIS AND INDIANA FOR INSTANCE 25 TO 50 OF THE SOYBEAN HARVEST MAY ALREADY HAVE BEEN COMPLETED ANALYSTS SAID NATIONALLY ABOUT 11 OF THE SOYBEAN HARVEST WAS COMPLETE AS OF SUNDAY ACCORDING TO A WEEKLY REPORT FROM THE AGRICULTURE DEPARTMENT USUALLY FARMERS HARVEST SOYBEANS BEFORE THEY REAP THEIR CORN CROPS AT THE CBOT YESTERDAY HEAVY SELLING BY COMMODITY FUNDS OR MANAGED POOLS OF INVESTOR MONEY HELPED TO DEPRESS PRICES A TRADERS' COMMITMENT REPORT RELEASED BY THE COMMODITY FUTURES TRADING COMMISSION IN WASHINGTON SHOWED THAT COMMODITY FUNDS WERE HOLDING 115 BUSHELS WORTH OF LONG POSITIONS OR WAGERS THAT GRAIN FUTURES PRICES WOULD RISE AS OF LAST WEEK I THINK THE PRICE DROP WAS JUST A FUNCTION OF THE HARVEST AND THE FUNDS GETTING CAUGHT LONG SAID FRANK STEARNS GRAIN ANALYST FOR REFCO INC I WOULD EXPECT MORE OF THE SAME OVER THE NEXT COUPLE OF DAYS IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS THE ACTIVELY TRADED DECEMBER GOLD FUTURES CONTRACT SETTLED AT 35460 AN OUNCE DOWN 230 AFTER A DAY OF TURBULENT TRADING BECAUSE OF POLITICAL INSTABILITY IN RUSSIA AT ONE POINT DURING THE DAY THE DECEMBER CONTRACT PRICE WAS DOWN 690 AN OUNCE THE MARKET IS NOW AT THE SAME LEVEL IT WAS AT PRIOR TO THE RUSSIAN SITUATION SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH NOW I THINK WE'LL BEGIN TO FOCUS ON THE ECONOMIC SITUATION WHICH DOES NOT BODE PARTICULARLY WELL FOR PRECIOUS METALS THE LACK OF INFLATION IN THE US AND THE RECESSION IN JAPAN ARE BOTH SERVING TO ERODE DEMAND FOR GOLD EVEN DURING THIS PERIOD OF RUSSIANRELATED VOLATILITY WE SAW NO INVESTOR BUYING COME INTO THE MARKET JUST A SERIES OF KNEEJERK REACTIONS TO NEWS STORIES MR O'NEILL SAID IT AGAIN SHOWS THAT THERE'S NO REAL INVESTOR SUPPORT FOR THE MARKET ENERGY CRUDE OIL AND PRODUCT FUTURES PRICES SETTLED LOWER IN MODERATE TRADING YESTERDAY BARELY REACTING TO THE TURMOIL IN RUSSIA WHERE RIVALING FACTIONS CLASHED OVER THE WEEKEND AND CIVIL WAR SEEMED IMMINENT OIL PRICES HAD JUMPED IN OVERNIGHT TRADING BASED ON EVENTS IN RUSSIA BUT THOSE GAINS WERE SHRUGGED OFF DURING THE TRADING SESSION AT THE NEW YORK MERCANTILE EXCHANGE TRADERS SAID THE MOMENTOUS EVENTS IN RUSSIA YESTERDAY DIDN'T AFFECT FUNDAMENTAL SUPPLYANDDEMAND ISSUES IT IS UNLIKELY THEY SAY THAT RUSSIAN EXPORTS WILL BE CUT BECAUSE OF THE CIVIL UNREST MARKET PARTICIPANTS ARE INSTEAD FOCUSING ON HOW TO EVALUATE THE OUTCOME OF LAST WEEK'S MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES 9310050139 931005 WHO'S NEWS GOODY'S FAMILY CLOTHING INC GOODY'S FAMILY CLOTHING INC KNOXVILLE TENN GEORGE I RUBIN 52 YEARS OLD WAS NAMED A DIRECTOR OF THIS CLOTHING RETAILER ON THE EIGHTMEMBER BOARD MR RUBIN EXECUTIVE VICE PRESIDENT FOR MERCHANDISING ADVERTISING AND STORE OPERATIONS SUCCEEDS RANDY MULLINS WHO REMAINS VICE PRESIDENT OF STORE OPERATIONS SEPARATELY HANS STERNBERG 58YEAROLD CHAIRMAN OF STARMOUNT LIFE INSURANCE CO RESIGNED AS DIRECTOR GOODY'S CITED A CONFLICT OF INTEREST INVOLVING MR STERNBERG AND A COMPANY THAT HE FORMERLY OWNED GOODY'S HAS YET TO FILL THE BOARD VACANCY 9310050138 931005 WHO'S NEWS BANC ONE CORP BANC ONE CORP COLUMBUS OHIO RICHARD D HEADLEY 45 YEARS OLD FORMERLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE BANC ONE CREDIT CARD SERVICES CO UNIT WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BANC ONE SERVICES CORP THE BANK HOLDING COMPANY'S DATA PROCESSING UNIT MR HEADLEY SUCCEEDS DONALD L MCWHORTER WHO WILL CONTINUE AS PRESIDENT OF BANC ONE CORP IN ADDITION JEFFREY P NEUBERT 51 YEARS OLD FORMERLY EXECUTIVE VICE PRESIDENT CORPORATE DEVELOPMENT FOR THE HOLDING COMPANY WAS NAMED TO THE NEWLY CREATED POST OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BANC ONE DIVERSIFIED CREDIT CORP A NEW BUSINESS GROUP THAT INCLUDES THE COMPANY'S BANC ONE LEASING CORP BANC ONE CREDIT CARD SERVICES CO AND FINANCE ONE CORP UNITS 9310050137 931005 VISTA CHEMICAL AUDITOR GETS PRISON SENTENCE FOR INSIDER TRADING HOUSTON THE FORMER AUDITOR OF VISTA CHEMICAL CO WAS SENTENCED TO 2 1/2 YEARS IN PRISON FOR HIS CONVICTION ON CRIMINAL CHARGES OF INSIDER TRADING EDWARD RUGGIERO FORMERLY SUPERVISOR OF INTERNAL AUDIT AT VISTA WAS CHARGED WITH TRADING ON HIS KNOWLEDGE OF THE COMPANY'S IMPENDING MERGER WITH RWE AG A GERMAN CONCERN IN LATE 1990 MR RUGGIERO ALSO WAS CHARGED WITH PASSING THE TIP ON TO A FRIEND CHRISTOPHER S PARKER WHO WAS CONVICTED WITH MR RUGGIERO IN FEDERAL COURT IN HOUSTON IN JUNE MR PARKER WAS SENTENCED TO 1 1/2 YEARS IN PRISON BOTH MEN ARE APPEALING THEIR CONVICTIONS 9310050136 931005 INFORMATION INTERNATIONAL SHARES CULVER CITY CALIF INFORMATION INTERNATIONAL INC SAID THREE SHAREHOLDERS INCLUDING ITS FORMER CHAIRMAN WHO RETIRED IN JUNE SOLD A TOTAL OF 339298 SHARES IN THE COMPANY OR ABOUT 144 THE SHARES WERE SOLD ON THE OPEN MARKET PRIMARILY TO INSTITUTIONAL INVESTORS INFORMATION INTERNATIONAL SAID THE SELLING SHAREHOLDERS ARE THE FORMER CHAIRMAN ALFRED FENAUGHTY THE FORMER VICE PRESIDENT OF ENGINEERING ROBERT WALLER AND ANOTHER PERSON THE COMPANY DECLINED TO IDENTIFY INFORMATION INTERNATIONAL MAKES COMPUTER SYSTEMS THAT AUTOMATE MULTIMEDIA PRODUCTION AND PUBLISHING 9310050135 931005 MARKETING & MEDIA ADVERTISING AT&T CALLS FOR ACCOUNT REVIEW OF 200 MILLION CONSUMER ADS BY KEVIN GOLDMAN AMERICAN TELEPHONE & TELEGRAPH IS REVIEWING ITS CONSUMER ADVERTISING ACCOUNT VALUED AT ABOUT 200 MILLION LESS THAN TWO MONTHS AFTER A NEW EXECUTIVE TOOK CHARGE OF ITS RESIDENTIAL LONGDISTANCE BUSINESS THE NEWS AFFECTS AT&T'S FIVE CORE AGENCIES NW AYER YOUNG & RUBICAM INTERPUBLIC GROUP'S MCCANNERICKSON WPP GROUP'S OGILVY & MATHER AND FCB/LEBER KATZ PARTNERS ALTHOUGH EXACT BILLINGS AREN'T KNOWN THE TWO AGENCIES WITH THE MOST AT STAKE ARE AYER WHICH PRODUCES AT&T'S I PLAN AND YOU WILL ADS AND HAS BEEN AT&T'S AGENCY SINCE 1908 AND YOUNG & RUBICAM WHICH IS RESPONSIBLE FOR AT&T'S INTERNATIONAL LONGDISTANCE CAMPAIGN AT&T SAYS THE REVIEW IS NOTHING OUT OF THE ORDINARY WE PERIODICALLY REVIEW OUR ADVERTISING AND MARKETING STRATEGIES SAYS A COMPANY SPOKESMAN CONFIRMING THE REVIEW WHICH WAS FIRST REPORTED IN TRADE PUBLICATIONS WE AREN'T GOING FOR A CREATIVE SHOOTOUT SAYS DICK MARTIN AT&T'S VICE PRESIDENT OF PUBLIC RELATIONS AND CORPORATE ADVERTISING NO ONE WILL BELIEVE US BUT THAT'S THE CASE HOWEVER WHEN ASKED SPECIFICALLY WHETHER ASSIGNMENTS WILL CHANGE AFTER THE REVIEW MR MARTIN ANSWERS IT'S POSSIBLE BUT THAT IS NOT OUR INTENTION AT&T HAS ASKED THE FIVE AD AGENCIES TO HELP US REVIEW AND POSSIBLY REFOCUS OUR STRATEGIC MARKETING COMMUNICATIONS MR MARTIN SAYS WHILE CLIENTS TYPICALLY MAKE REASSURANCES TO THEIR AD AGENCIES AGENCIES KNOW ANYTHING IS POSSIBLE WHEN AN ACCOUNT IS UP FOR REVIEW FOR INSTANCE AMERICAN EXPRESS REPEATEDLY INSISTED ITS 1991 REVIEW WAS ROUTINE THEN MOVED NEARLY ALL OF ITS CHARGECARD ADVERTISING FROM OGILVY & MATHER TO CHIAT/DAY LAST YEAR OGILVY WON THE BUSINESS BACK AT&T IS IN A PITCHED COMPETITION FOR LONGDISTANCE CUSTOMERS WITH SPRINT AND MCI COMMUNICATIONS AT&T IS STILL THE LEADER IN THE 65 BILLION LONGDISTANCE MARKET WITH A SHARE OF BETWEEN 62 AND 65 SAYS JACK GRUBMAN AN ANALYST WITH PAINEWEBBER BUT AT&T'S LEAD HAS DWINDLED FROM 90 IN THE MID1980S ACCORDING TO MR GRUBMAN THE REVIEW ISN'T TOTALLY UNEXPECTED IT WAS ORDERED BY JOSEPH NACCHIO WHO WAS NAMED CHIEF OF AT&T'S RESIDENTIAL LONGDISTANCE BUSINESS IN AUGUST MR NACCHIO 44 YEARS OLD WAS PREVIOUSLY HEAD OF AT&T'S BUSINESS COMMUNICATIONS SERVICES AND WAS RESPONSIBLE FOR APPROVING ADS THAT FEATURED AN UNUSUALLY BLUNT ATTACK EARLIER THIS YEAR AGAINST MCI'S SERVICE QUALITY COLLEAGUES SAY MR NACCHIO RELISHES SPARRING WITH RIVALS FOR EXAMPLE IN ONE AD PRODUCED BY MCCANN UNDER MR NACCHIO AT&T OFFERED REASON NO 117 TO STICK WITH IT SAYING THAT MCI HAD OVER TWICE AS MANY SERVICE OUTAGES MCI RESPONDED WHEN IT COMES TO RELIABILITY AT&T IS EITHER PRACTICING DECEPTION OR IS LOUSY AT MATH AT THE TIME MR NACCHIO SAID THAT IN SOME PERVERSE WAY HE WAS PLEASED WITH MCI'S TONE AFTER ALL THEY'RE TALKING ABOUT US HE SAID IN AN INTERVIEW IN APRIL SOME OF AT&T'S ADS MAY NOT BE CONNECTING WELL WITH CONSUMERS HOWEVER FOR EXAMPLE CRITICS COMPLAIN THAT THE I PLAN ADS ARE CONFUSING AND DON'T COMMUNICATE BENEFITS EFFECTIVELY CRITICS QUESTION WHETHER MOST CONSUMERS EVEN KNOW THAT THE I STANDS FOR INDIVIDUAL THE I PLAN' ADVERTISING HAS HAD MIXED REVIEWS SAYS MR MARTIN WE THINK IT HAS BEEN SUCCESSFUL BUT HAS IT BEEN AS SUCCESSFUL AS WE WISHED NO MR MARTIN SAYS THE I PLAN IS BRILLIANT AS A BUSINESS PRODUCT BUT HE ADDS WILL WE CONTINUE THIS ADVERTISING I DON'T KNOW AT&T'S ADS ARE WILDLY DIVERSE SOME OF THE TELEVISION SPOTS FOR THE I PLAN ARE A BIT SURREAL ONE FEATURES A BELL CHIMING AND THE FACE OF A BALDHEADED MAN REPLACED BY A PARTLY CLOUDY SKY OTHER ADS SUCH AS THOSE FOR THE YOU WILL CAMPAIGN ARE FUTURISTIC ONE FEATURES A WOMAN TUCKING HER INFANT INTO BED VIA A PICTURE TELEPHONE AND A MAN RECEIVING A FAX ON A PORTABLE FACSIMILE MACHINE WHILE SOAKING UP RAYS AT THE BEACH STILL OTHER AT&T ADS TAKE A SIMPLE APPROACH SUCH AS YOUNG & RUBICAM'S WHICH ARE CURRENTLY SHOWING TRAVELOGUE SHOTS OF IRELAND AMONG OTHER LOCALES MR MARTIN IS SCHEDULED TO MEET WITH THE FIVE AGENCIES TOGETHER ON FRIDAY WE HAVE NOT DONE ANYTHING IN THIS INVITATION TO CAUSE OUR AGENCIES ANY GREAT CONCERN HE SAYS THE AGENCIES WERE NOTIFIED OF THE REVIEW ON THURSDAY BY FACSIMILE LETTER AND A FOLLOWUP TELEPHONE CALL AT&T SAYS MR MARTIN HAS THE BEST ADVERTISING IN THE BUSINESS BUT WE CAN ALWAYS DO BETTER IN A MAJOR SHAKEUP OF ITS EDITORIAL RANKS ADVERTISING AGE FIRED ITS EXECUTIVE EDITOR AND ITS NEW YORK BUREAU CHIEF DISMISSED WERE DENNIS CHASE THE EXECUTIVE EDITOR AND JOHN WOLFE SENIOR EDITOR AND NEW YORK BUREAU CHIEF MR CHASE WILL BE SUCCEEDED BY STEVE YAHN EDITOR OF BUSINESS MARKETING WHICH IS OWNED BY CRAIN COMMUNICATIONS THE OWNER OF ADVERTISING AGE MR WOLFE WILL BE SUCCEEDED BY LONGTIME ADVERTISING AGE EMPLOYEE PAT SLOAN WHO MOST RECENTLY SERVED AS MR WOLFE'S DEPUTY JOE WINSKI AN EDITORATLARGE ALSO WAS FIRED THAT POST WON'T BE FILLED IN AN INTERVIEW FRED DANZIG EDITOR OF THE WEEKLY TRADE PUBLICATION SAID THE MOVES ARE IN PART THE RESULT OF STEPPING UP THE TEMPO OF REPORTING HOWEVER HE DECLINED TO SPEAK SPECIFICALLY OF THE EDITORS WHO WERE FIRED NONE OF THE EDITORS WHO WERE DISMISSED COULD BE REACHED FOR COMMENT WHO'S NEWS WHITTLE COMMUNICATIONS'S SPECIAL REPORTS NETWORK KNOXVILLE TENN NAMED VALERIE SCHAER 33 YEARS OLD TO THE POST OF PRESIDENT OF CREATIVE SHE SUCCEEDS KEITH BELLOWS 42 WHO IS LOOKING FOR OTHER OPPORTUNITIES THE COMPANY SAID MS SCHAER HAD BEEN VICE PRESIDENT OF PRODUCTION AT LIFETIME TELEVISION JOINTLY OWNED BY HEARST CORP CAPITAL CITIES/ABC AND VIACOM SPECIAL REPORTS PRODUCES PLACEBASED VIDEOS AND PUBLICATIONS FOR DOCTORS' OFFICES 9310050134 931005 MONDAY'S MARKETS MARKETS REACT LITTLE TO RUSSIA STOCK AND BOND PRICES CLOSE MIXED DOLLAR FALLS AFTER EARLY RISE BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL RUSSIA'S BLOODY CLASH SPARKED ONLY A MUTED REACTION IN THE FINANCIAL MARKETS LEAVING STOCK AND BOND PRICES MIXED THE DOLLAR FELL OVERSEAS STOCK MARKETS' REACTION WAS MORE MUTED THAN EXPECTED THE GERMAN AND FRENCH STOCK MARKETS ROSE 06 AND BRITISH SHARES CLIMBED 09 WITH THE VARIOUS CRISES WE HAVE HAD IN THE PAST PEOPLE HAVE GOTTEN ADDICTED TO CATASTROPHES SAID WOLFHARD GRAETZ CHIEF INVESTMENT OFFICER AT THE BANK J VONTOBEL & CO GROUP IN ZURICH THAT MEANS THEY DON'T REACT ANYMORE IN THE US THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 335 TO 357776 AND STANDARD & POOR'S 500STOCK INDEX INCHED UP 005 TO 46134 THE NASDAQ COMPOSITE INDEX GAINED 161 TO A RECORD 76484 STOCK PRICES IN THE US FAILED TO REACT SHARPLY PARTLY BECAUSE TROOPS LOYAL TO RUSSIAN PRESIDENT BORIS YELTSIN LARGELY HAD THE PARLIAMENTARY CRISIS UNDER CONTROL BY THE TIME TRADING BEGAN IN NEW YORK BUT NEIL HOKANSON PRESIDENT OF HOKANSON FINANCIAL MANAGEMENT IN ENCINITAS CALIF POINTED TO ANOTHER REASON WHAT'S HAPPENING IS AMERICAN INVESTORS ARE FOCUSING ON AMERICA OUR EYES ARE TURNED INWARD TO THE ECONOMIC RECOVERY AND HEALTH CARE AND THE NORTH AMERICAN FREE TRADE AGREEMENT MR HOKANSON SAID IF YOU HAD A LITTLE RUMBLE ON HEALTH CARE OR NAFTA THEN YOU'D SEE THE MARKET MOVE ROBERT N STREED SENIOR INVESTMENT COUNSELOR AT NORTHERN TRUST CO IN CHICAGO SAID STOCK INVESTORS HAVE COME TO EXPECT TURMOIL IN THE FORMER SOVIET UNION DURING ITS TRANSFORMATION FROM COMMUNISM TO DEMOCRACY THE MARKET HAS ALREADY DISCOUNTED THAT THERE WILL BE MORE VIOLENCE AND ARMED CONFLICT HE SAID INVESTORS FLEEING TO THE DOLLAR AS A SAFE HAVEN STAYED TEMPORARILY IN EARLY MONDAY TRADING THE DOLLAR JUMPED TWO AND A HALF PFENNIGS AND ROSE AGAINST OTHER MAJOR CURRENCIES AFTER VIOLENCE ERUPTED IN MOSCOW BY LATE NEW YORK TRADING THE US CURRENCY HAD GIVEN UP ALL OF ITS GAINS AND EVEN FALLEN BELOW WHERE IT WAS FRIDAY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 034 TO 11194 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2258 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1149 ISSUES ROSE AND 878 FELL BOND PRICES WERE MIXED THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST 1/8 OF A POINT OR 125 FOR EACH 1000 FACE AMOUNT TO YIELD 60 SHORTERTERM ISSUES ROSE SLIGHTLY THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16238 MARKS AND 10580 YEN COMPARED WITH 16309 MARKS AND 10595 YEN FRIDAY 9310050133 931005 WHO'S NEWS AMERICAN TELEPHONE & TELEGRAPH CO AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK WALTER J SOUSA 50 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AT&T ASIA/PACIFIC HONG KONG A NEW POSITION MR SOUSA WILL HEAD AT&T'S BUSINESS UNITS AND STAFF OPERATIONS IN THE ASIA/PACIFIC AREA INCLUDING JAPAN AND WILL WORK CLOSELY WITH WILLIAM J WARWICK CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AT&T CHINA HE ALSO WILL BE A MEMBER OF AT&T'S GLOBAL OPERATIONS TEAM WHICH IS RESPONSIBLE FOR PLANNING AND IMPLEMENTATION OF COMPANYWIDE POLICIES AND PRACTICES MR SOUSA WAS PREVIOUSLY CHIEF OPERATING OFFICER OF ASTEC BSR PLC A MAKER OF SWITCHING POWER SUPPLIES AND HAS HELD SEVERAL POSITIONS IN ASIA FOR HEWLETTPACKARD CO 9310050132 931005 WHO'S NEWS BLACK & DECKER CORP BLACK & DECKER CORP TOWSON MD THIS POWER TOOLS AND COMPUTER CONCERN NAMED GARY T DICAMILLO TO THE NEWLY CREATED POSITION OF PRESIDENT POWER TOOLS & ACCESSORIES WITH WORLDWIDE OPERATING RESPONSIBILITY THE UNIT HAS ABOUT 2 BILLION IN ANNUAL SALES MR DICAMILLO FORMERLY PRESIDENT OF THE NORTH AMERICAN POWER TOOLS GROUP WAS ALSO NAMED A CORPORATE VICE PRESIDENT MR DICAMILLO 42 YEARS OLD JOINED BLACK & DECKER IN 1986 AS VICE PRESIDENT MARKETING FOR US POWER TOOLS 9310050131 931005 FOREIGN EXCHANGE DOLLAR GIVES UP GAINS AGAINST MARK AS YELTSIN FORCES HIS FOES TO SURRENDER BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR BROKE INTO A GENERAL RETREAT AGAINST THE MARK MONDAY AS INVESTORS DECIDED RUSSIAN PRESIDENT BORIS YELTSIN HAD WON HIS STRUGGLE WITH MEMBERS OF PARLIAMENT AFTER A BLOODY ASSAULT FORCED HUNDREDS OF HIS HARDLINE OPPONENTS TO SURRENDER LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16238 MARKS DOWN FROM 16309 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10580 YEN DOWN SLIGHTLY FROM 10595 YEN STERLING WAS TRADING AT 15145 UP FROM 15050 EARLY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10560 YEN AND AT 16235 MARKS TRADERS HAD FLOCKED TO THE DOLLAR DURING AUSTRALASIAN AND MUCH OF ASIAN TRADING AFTER SUPPORTERS OF RUSSIA'S HARDLINE PARLIAMENT WENT ON A BLOODY RAMPAGE THROUGH MOSCOW SUNDAY LEAVING A SCORE OF PEOPLE DEAD IN SEVERAL ATTACKS ON GOVERNMENT BUILDINGS THAT BUYING PUSHED THE DOLLAR AS HIGH AS 16557 MARKS BY LATE IN THE ASIAN TRADING DAY BUT WHEN MR YELTSIN SENT IN THE ARMY AGAINST HIS OPPONENTS TRADERS REVERSED COURSE AND BEGAN TO CASH IN ON THE DOLLAR'S CLIMB DEALERS SAID THAT DESPITE THE UNSETTLING SCENES OF VIOLENCE IN MOSCOW THE MARKET TOOK THE VIEW THAT MR YELTSIN'S RIVALS WOULDN'T BE ABLE TO HOLD OUT FOR LONG UNDER THE FULLSCALE MILITARY ASSAULT AND WHEN THE HARDLINERS BEGAN TO EMERGE FROM THE CHAOS WAVING WHITE SURRENDER FLAGS TRADERS SOLD THE DOLLAR EVEN MORE ENERGETICALLY JUDGING THE TURMOIL THAT HAD SPARKED HAVEN BUYING OF THE DOLLAR TO BE OVER AT LEAST YELTSIN SEEMS TO BE GETTING CONTROL AS LONG AS HE APPEARS TO BE GETTING CONTROL PEOPLE ARE COMFORTABLE BUYING MARKS AGAIN SAID DAVE GLOWACKI SENIOR TRADER AT NATIONAL BANK OF DETROIT TRADERS ALSO NOTED THAT THE DOLLAR'S EARLY GAINS PROVIDED SOME SPECULATIVE PLAYERS WITH AN OPPORTUNITY TO STOCK UP ON MARKS FAIRLY CHEAPLY SPARKING EVEN MORE MARK BUYING THAT MARK BUYING DROPPED THE DOLLAR MORE THAN THREE FULL PFENNIGS FROM ITS INTRADAY HIGH BEFORE STRONG BUYING INTEREST REAPPEARED AROUND 16200 MARKS TO STEADY THE DOLLAR FOR THE REST OF THE DAY ANY KIND OF RALLY BY THE DOLLAR IS AN OPPORTUNITY TO BUY MARKS AND SELL DOLLARS SAID PETER THOMPSON CHIEF DEALER AT FIRST BANK NATIONAL ASSOCIATION IN MINNEAPOLIS BUT MR THOMPSON AND OTHER TRADERS WERE SOMEWHAT SURPRISED BY THE EXTENT OF THE DOLLAR SELLOFF NOTING THAT EVEN WITH THE MAJOR HARDLINERS ARRESTED SUNDAY'S VIOLENCE WHICH INVOLVED SEVERAL THOUSAND STRIDENT ANTIYELTSIN DEMONSTRATORS SUGGESTS THAT NEW TROUBLE COULD ERUPT AT ANY TIME YOU'RE TALKING ABOUT A MASS OF PEOPLE WHO ARE VERY DISSATISFIED WITH HOW THINGS HAVE BEEN GOING THERE MR THOMPSON SAID I CERTAINLY DON'T WANT TO GO HOME SHORT DOLLARS HE ADDED MEANWHILE THE CANADIAN DOLLAR WEAKENED FURTHER AS CONCERN OVER THE OUTCOME OF THE PENDING NATIONAL ELECTION PUSHED IT TO ITS LOWEST LEVEL SINCE JUNE 1987 TRADERS SAID THE MARKET IS WORRIED BY OPINION POLLS SHOWING THE RULING CONSERVATIVE PARTY SLIPPING EVEN FURTHER BEHIND THE OPPOSITION LIBERAL PARTY IN THE RUN UP TO THE OCT 25 ELECTION ONE PUBLIC OPINION POLL RELEASED MONDAY SHOWED THE LIBERALS GATHERING THE SUPPORT OF 38 OF DECIDED VOTERS WITH THE CONSERVATIVES GETTING ONLY 21 TRADERS SAID THAT THE POLLS PROMPTED FOREIGN INVESTORS TO CONTINUE SALES OF THE CANADIAN DOLLAR WHICH HAS FALLEN SHARPLY DURING THE PAST FEW DAYS ON CONCERN THAT A VICTORY FOR THE LIBERAL PARTY COULD OPEN THE DOOR FOR WIDER GOVERNMENT BUDGET DEFICITS THOSE SALES HELPED BOOST THE US DOLLAR ABOVE RESISTANCE AT 13400 CANADIAN DOLLARS SPARKING A ROUND OF STOPLOSS CANADIANDOLLAR SALES THAT LIFTED THE US UNIT TO C13413 CANADIAN DOLLARS BY LATE TRADING IN NEW YORK UP FROM C13378 CANADIAN DOLLARS FRIDAY 9310050130 931005 MARKETING & MEDIA MCGRAWHILL ACQUIRES MACMILLAN'S INTEREST IN TEXTBOOK VENTURE NEW YORK MCGRAWHILL INC COMPLETED ITS PURCHASE OF THE 50 IT DIDN'T ALREADY OWN OF MACMILLAN/MCGRAWHILL SCHOOL PUBLISHING CO MAKING MCGRAWHILL THE COUNTRY'S LARGEST PUBLISHER OF SCHOOL TEXTBOOKS MCGRAWHILL PAID 3375 MILLION FOR ITS PARTNER'S INTEREST IN THE JOINT VENTURE WHICH WAS FORMED WITH MACMILLAN INC IN 1989 MACMILLAN IS A SUBSIDIARY OF MAXWELL COMMUNICATION CORP THE COMPANY ONCE CONTROLLED BY MEDIA BARON ROBERT MAXWELL MCGRAWHILL ANNOUNCED ITS PLAN TO ACQUIRE THE INTEREST IN AUGUST MCGRAWHILL SAID IT PLANS TO TAKE A ONETIME ACQUISITIONRELATED CHARGE IN THE THIRD QUARTER ESTIMATED AT 230 MILLION OR 161 MILLION AFTER TAX JOSEPH L DIONNE MCGRAWHILL'S CHAIRMAN AND CHIEF EXECUTIVE SAID THE CHARGE WILL HAVE A SUBSTANTIAL EFFECT ON THIS YEAR'S EARNINGS BUT THE ACQUISITION WILL IMPROVE FUTURE PROFITABILITY STARTING IN 1994 WITH THE ACQUISITION MCGRAWHILL IS THE LARGEST PUBLISHER OF ELEMENTARY AND HIGHSCHOOL TEXTBOOKS THE JOINTVENTURE COMPANY HAD REVENUE OF 5049 MILLION LAST YEAR MCGRAWHILL SAID IT EXPECTS THE TEXTBOOK COMPANY'S REVENUE THIS YEAR TO REACH 600 MILLION 9310050129 931005 QUARTERLY MUTUAL FUNDS REVIEW VALUE' STOCKPICKERS THRIVE ABROAD BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THERE'S A WORLD OF DIFFERENCE BETWEEN FOREIGN STOCK MUTUAL FUNDS AS SOME DISAPPOINTED SHAREHOLDERS ARE NOW FINDING OUT AFTER FOUR YEARS OF PITIFUL PERFORMANCE MOST DIVERSIFIED INTERNATIONAL FUNDS HAVE COME ROARING BACK THIS YEAR BUT AT SOME FOREIGN STOCK FUNDS THE ROAR HAS SOUNDED MORE LIKE A WHIMPER ACCORDING TO CHICAGO FUND RESEARCHER MORNINGSTAR INC THE AVERAGE DIVERSIFIED FOREIGN STOCK FUND IS UP 251 IN THIS YEAR'S FIRST EIGHT MONTHS BUT WHILE THE TOP PERFORMER HAS GAINED ALMOST 38 THE POOREST PERFORMER IS UP JUST 13 WHAT EXPLAINS THAT DISPARITY INTERNATIONAL FUND MANAGERS LIKE THEIR DOMESTIC COUNTERPARTS USE A HOST OF DIFFERENT INVESTMENT STRATEGIES THESE VARIATIONS GO A LONG WAY IN EXPLAINING THE PERFORMANCE OF FOREIGN FUNDS IN 1993 AND PROBABLY WILL HAVE A MAJOR IMPACT ON WHO DOES WELL IN THE YEAR AHEAD FOR PROOF CONSIDER SOME STATISTICS PUT TOGETHER BY MORNINGSTAR THE FIRM DIVIDED 30 MAJOR FOREIGN STOCK FUNDS INTO THREE GROUPS GROWTH STOCK FUNDS VALUE FUNDS AND FUNDS WHOSE STRATEGY IS A BLEND OF THE TWO INVESTMENT STYLES GROWTH STOCK FUNDS FAVOR COMPANIES THAT ARE LIKELY TO HAVE A RAPID IMPROVEMENT IN FUTURE EARNINGS WHILE VALUE MANAGERS PREFER STOCKS THAT ARE CHEAP COMPARED WITH CURRENT EARNINGS OR CORPORATE ASSETS THIS YEAR INTERNATIONAL VALUE MANAGERS HAVE BEEN THE TOP PERFORMERS GAINING 29 ON AVERAGE MEANWHILE INTERNATIONAL FUNDS THAT USE A BLENDED INVESTMENT STYLE ARE UP 261 WHILE FOREIGN GROWTH STOCK FUNDS ARE UP JUST 235 THE VALUE PLAYERS TYPICALLY STAYED AWAY FROM HEALTHCARE AND CONSUMER GOODS WHICH HAVE LAGGED WORLDWIDE SAYS AMY ARNOTT A MORNINGSTAR ANALYST I WOULDN'T BE SURPRISED TO SEE VALUE CONTINUE TO DO WELL SHE ADDS A LOT OF THE GROWTH FUNDS STILL HAVE SOME EXPOSURE TO HEALTHCARE AND CONSUMER GOODS WHICH SHE BELIEVES WILL CONTINUE TO PERFORM POORLY CURIOUSLY VALUE FUNDS HAVE DAZZLED DESPITE LARGELY SHUNNING THE JAPANESE STOCK MARKET WHICH THIS YEAR HAS OUTDONE ALL OTHER MAJOR MARKETS MORNINGSTAR CALCULATES THAT VALUE FUNDS HAVE AN AVERAGE 83 OF ASSETS IN JAPAN COMPARED WITH 86 FOR FUNDS WITH A BLENDED INVESTMENT STYLE AND 155 FOR GROWTH STOCK FUNDS AMONG THIS YEAR'S TOP PERFORMERS HAS BEEN OAKMARK INTERNATIONAL FUND WHICH GAINED 361 IN THE FIRST EIGHT MONTHS OAKMARK HAS 60 OF ITS ASSETS IN EUROPE AND NOTHING IN JAPAN WE'RE REALLY STRICT VALUE INVESTORS SAYS DAVID HERRO MANAGER OF THE 585 MILLION FUND IF OTHER INVESTORS ARE GIVING AWAY A LOUSY COMPANY WE'LL BUY IT SOME OF OUR BIGGEST PERFORMERS HAVE BEEN FINANCIALS WHICH HAVE DONE WELL AS INTEREST RATES HAVE COME DOWN IN EUROPE JAPANESE FINANCIAL STOCKS WHICH LAST YEAR WERE GIVEN UP FOR DEAD AMID PREDICTIONS THAT THE JAPANESE FINANCIAL SYSTEM WOULD COLLAPSE ALSO HAVE BEEN SPARKLING PERFORMERS THE 14 BILLION FIDELITY OVERSEAS FUND HAS GAINED 324 THIS YEAR IN PART BECAUSE OF A HEFTY HOLDING OF BOTH EUROPEAN AND JAPANESE FINANCIAL STOCKS FOR NOW FIDELITY MANAGER JOHN R HICKLING PLANS TO MAINTAIN HIS BET ON INTERESTRATE SENSITIVE STOCKS INTEREST RATES OUTSIDE OF THE US ARE GOING TO DECLINE ESPECIALLY IN EUROPE HE SAYS THAT'S WHY I'M OVERWEIGHTED IN EUROPE MEANWHILE THE YEAR HASN'T BEEN NEARLY SO PLEASANT FOR SOME GROWTH STOCK MANAGERS WHO WERE BRAVE ENOUGH TO PLUNGE BACK INTO THE TOKYO MARKET ONLY TO FIND THEY HADN'T BOUGHT THE RIGHT STOCKS THE PEOPLE THAT HAD BIG JAPAN EXPOSURE TYPICALLY HAD THE WRONG STOCKS SAYS NICHOLAS CARN MANAGER OF THE 70 MILLION TNE INTERNATIONAL EQUITY FUND THEY BOUGHT THE COMPANIES WITH EARNINGS GROWTH AND THOSE AREN'T THE STOCKS THAT HAVE DONE BEST VALUE FUNDS MAY HAVE HAD THE UPPER HAND SO FAR THIS YEAR BUT WHICH FUNDS WILL SHINE IN THE YEAR AHEAD LEWIS ALTFEST PRESIDENT OF MANHATTAN INVESTMENT ADVISER LJ ALTFEST & CO IS HEDGING HIS BETS BY BUYING VANGUARD/TRUSTEES' INTERNATIONAL PORTFOLIO AND SCUDDER INTERNATIONAL FUND THE VANGUARD FUND BUYS VALUE STOCKS WHILE THE SCUDDER FUND FAVORS GROWTH COMPANIES I WOULD EMPHASIZE VALUE SAYS MR ALTFEST BUT PUTTING SOME MONEY IN GROWTH IS GOOD BECAUSE OF THE DIVERSIFICATION THE GROWTH GUYS ARE MORE LIKELY TO GET INVOLVED IN THE SMALLER MORE SPECULATIVE MARKETS MR ALTFEST RECOMMENDS PUTTING 20 OR MORE OF YOUR STOCK MARKET MONEY INTO FOREIGN STOCKS BUT KENNETH GREGORY EDITOR OF NOLOAD FUND ANALYST A SAN FRANCISCO NEWSLETTER FOR ONE SAYS HE DOESN'T PUT TOO MUCH EMPHASIS ON WHETHER A FOREIGN FUND USES A GROWTH OR VALUE INVESTMENT STYLE INSTEAD MR GREGORY'S CHIEF CONCERN IS TO FIND MANAGERS WHO PUT MOST OF THEIR EFFORTS INTO RESEARCHING FOREIGN COMPANIES HE BELIEVES MANY INTERNATIONAL FUND MANAGERS SPEND TOO MUCH TIME TRYING TO IDENTIFY THE NEXT HOT STOCK MARKET AND NOT ENOUGH TIME HUNTING FOR GOOD STOCK PICKS I THINK THERE'S A REAL LOGIC TO PICKING FUNDS THAT ARE RUN BY BOTTOMUP STOCKPICKERS SAYS MR GREGORY I LIKE THE IDEA OF SOMEBODY WHO'S SPENDING THEIR TIME TRYING TO PICK GOOD STOCKS AND I LIKE THAT WHETHER THEY'RE VALUE MANAGERS OR GROWTH STOCK MANAGERS ON THAT BASIS MR GREGORY FAVORS CHICAGO'S OAKMARK INTERNATIONAL FUND AND NEW YORK'S WARBURG PINCUS INTERNATIONAL EQUITY FUND 9310050128 931005 APS HOLDING GETS CREDIT LINE HOUSTON APS HOLDING CORP SAID IT GOT A 130 MILLION CREDIT LINE FROM A GROUP OF COMMERCIAL BANKS IT DIDN'T IDENTIFY THE AUTOMOTIVE PARTS DISTRIBUTOR WHICH WENT PUBLIC LAST MONTH SAID IT PLANS TO USE THE CREDIT LINE TO REDEEM DEBT SECURITIES AND TO REPAY BORROWINGS UNDER ITS CURRENT WORKINGCAPITAL LOAN 9310050126 931005 GREAT AMERICAN COMMUNICATIONS CINCINNATI GREAT AMERICAN COMMUNICATIONS CO SAID IT STARTED A SOLICITATION FOR VOTES TO ACCEPT A PREVIOUSLY ANNOUNCED PREPACKAGED REORGANIZATION PLAN WHICH CALLS FOR THE COMPANY TO ISSUE COMMON STOCK AND 14 NOTES THE COMPANY WHOSE LARGEST SHAREHOLDER IS CINCINNATI FINANCIER CARL H LINDNER'S CLOSELY HELD AMERICAN FINANCIAL CORP SAID IT NEGOTIATED PROPOSED TERMS OF THE PLAN WITH UNOFFICIAL DEBTHOLDER COMMITTEES THE REORGANIZATION AFFECTS GREAT AMERICAN AND TWO OF ITS NONOPERATING UNITS BUT NOT THE COMPANY'S OPERATING UNIT GREAT AMERICAN TELEVISION & RADIO CO 9310050125 931005 MALLON OIL TRIPLES ITS RESERVES DENVER MALLON OIL CO COMPLETED ITS PURCHASE OF PROPERTIES FROM PENNZOIL CO FOR 214 MILLION MORE THAN TRIPLING ITS PROVEN OIL AND GAS RESERVES MALLON BOUGHT INTERESTS IN 147 WELLS IN LEA AND EDDY COUNTIES IN NEW MEXICO'S DELAWARE BASIN GAS RESERVES INCREASED TO 38 BILLION CUBIC FEET FROM 109 BILLION CUBIC FEET AND OIL RESERVES GREW TO 144 BILLION BARRELS FROM 337 MILLION BARRELS THE COMPANY SAID THE ACQUISITION WAS FINANCED IN PART BY A 12 MILLION PRODUCTION PAYMENT FROM A UNIT OF ENRON CORP TO DELIVER ABOUT FOUR BILLION CUBIC FEET OF GAS AND 215 MILLION BARRELS OF OIL OVER THE NEXT EIGHT YEARS MALLON OIL CO OF DENVER INCREASED ITS OIL RESERVES TO 14 MILLION BARRELS OF OIL FROM 337000 BARRELS WITH ITS ACQUISITION OF PROPERTIES FROM PENNZOIL CO IN AN ARTICLE YESTERDAY THE AMOUNTS WERE OVERSTATED ALSO MALLON AGREED TO DELIVER 215000 BARRELS OF OIL TO A UNIT OF ENRON CORP NOT 215 MILLION BARRELS AS REPORTED 9310050124 931005 QUARTERLY MUTUAL FUNDS REVIEW IN ABCS OF SHARES B' IS FOR BEWARE BY GENE COLTER SPECIAL TO THE WALL STREET JOURNAL NEW YORK IF YOU'RE BUYING A MUTUAL FUND THROUGH A BROKER BETTER B CAREFUL BROKERS ARE DOING A BANGUP BUSINESS SELLING SOCALLED B SHARES A B SHARE GIVES YOU AN INVESTMENT IN THE SAME PORTFOLIO AS A GARDENVARIETY BROKERSOLD FUND SHARE BUT INSTEAD OF PAYING A LOAD OR SALES CHARGE AT THE TIME OF PURCHASE YOU PAY THE LOAD LATER ON WHEN YOU WITHDRAW THE MONEY THIS DOWNTHEROAD LOAD CAN BE 4 TO 5 DECLINING TO ZERO IF YOU STAY IN THE FUND SEVERAL YEARS THE BUYNOW PAYLATER CACHET IS A MAJOR SELLING POINT SAY FUND BROKERS WHILE B SHARES AREN'T NEW MORE AND MORE FUND GROUPS ARE TACKING THEM ON TO THEIR FUNDS AND ENJOYING HUGE DEMAND AT THE 42 COMPANIES THAT NOW OFFER MORE THAN ONE CLASS OF SHARES ON THEIR FUNDS BSHARE SALES ARE OUTPACING SALES OF TRADITIONAL SHARES ACCORDING TO FUND RESEARCHER DALBAR FINANCIAL SERVICES IN BOSTON DESPITE THIS SUCCESS B SHARES ARE CONTROVERSIAL EVEN AT SOME OF THE FIRMS THAT ARE PROFITING FROM THEM IT'S NOT THE BEST DEAL FOR THE SHAREHOLDER JON FOSSEL CHIEF EXECUTIVE OFFICER OF OPPENHEIMER MANAGEMENT CORP SAYS OF B SHARES THE COMPANY WHICH HAS NEARLY 25 BILLION UNDER MANAGEMENT BEGAN OFFERING B SHARES ON 13 OF ITS FUNDS THIS YEAR RELUCTANTLY BEGRUDGINGLY MR FOSSEL SAYS BIG INVESTORS GET HIT THE HARDEST BY B SHARES FOR SMALLER INVESTORS B SHARES ACTUALLY SEEM TO HAVE PERFORMED ABOUT AS WELL AS SHARES WITH MORE TRADITIONAL FRONTEND LOADS ACCORDING TO DATA FROM MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER BUT THE UNUSUAL STRUCTURE BREEDS CONFUSION SOME PEOPLE INCLUDING DON PHILLIPS PUBLISHER OF MORNINGSTAR WORRY THAT INVESTORS MAY THINK THEY ARE HOLDING NOLOAD FUNDS WHICH DON'T CHARGE SALES COMMISSIONS AT ALL MR PHILLIPS TELLS A STORY OF HOW A RELATIVE WENT TO A FUND BROKER AND INSISTED ON A NOLOAD FUND WHAT SHE GOT WAS B SHARES SHE LEFT THE OFFICE THINKING THAT SHE HAD BOUGHT A NOLOAD FUND HE SAYS OF COURSE ANY LOAD CHARGED BY A FUND REDUCES THE INVESTOR'S RETURN THERE CAN BE NO ARGUMENT THAT THERE'S SOME PERCENTAGE OF INVESTORS WHO DO NOT UNDERSTAND WHAT THEY OWN SAYS WILLIAM SCOTT JR PRESIDENT OF MFS FINANCIAL SERVICES INC BUT A LOT OF THE MYSTERY IS GONE FROM B SHARES MFS BEGAN SELLING B SHARES ON MOST OF ITS FUNDS IN SEPTEMBER HERE'S HOW B SHARES WORK YOU PAY A BACKEND LOAD IF YOU LEAVE BUT HOW MUCH YOU PAY DEPENDS ON HOW LONG YOU STAY THE CHARGE USUALLY DROPS ONE PERCENTAGE POINT EVERY YEAR OR TWO AFTER YOU HAVE HELD THE FUND FOR THREE YEARS IT TAKES SIX YEARS OR MORE IN MOST B SHARES TO WIPE OUT THE BACKEND LOAD AT THAT POINT MOST FIRMS CONVERT YOUR B SHARES TO A SHARES AS ORDINARY FRONTLOAD SHARES HAVE COME TO BE KNOWN BUT YOU WOULDN'T BE CHARGED ANY OTHER SALES FEES FOR THE CONVERSION TO THE A CLASS SOME FUND EXECUTIVES SAY MANY BANK CUSTOMERS WHO BUY B SHARES ARE USED TO THE IDEA OF BACKEND FEES BECAUSE THEY'VE SUFFERED PENALTIES FOR CASHING OUT OF CERTIFICATES OF DEPOSIT EARLY BANKS HAVE BECOME BIG SELLERS OF MUTUAL FUNDS IN RECENT YEARS BUT B SHARES ALSO CHARGE OTHER FEES ALONG THE WAY THESE 12B1 FEES NAMED AFTER THE SECURITIES AND EXCHANGE COMMISSION RULE AUTHORIZING THEM OSTENSIBLY COVER THE FUND'S MARKETING COSTS AND ARE CHARGED EVERY YEAR THESE FEES OFTEN ARE MUCH HIGHER FOR THE B SHARES THAN FOR A SHARES FOR EXAMPLE AT MFS CLASS A SHARES CARRY 12B1 FEES AS HIGH AS 035 OF FUND ASSETS WHILE THE B SHARES HAVE 12B1 FEES AS HIGH AS 1 THE MAXIMUM ALLOWED BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS THE NASD WHICH OVERSEES SALES AND MARKETING OF FUNDS FOR THE SEC HAS IMPOSED A ROLLING CAP ON HOW LONG A FUND CAN CHARGE MAXIMUM 12B1 FEES BUT MOST FIRMS WILL CHARGE THE TOP AMOUNT ON YOUR B SHARES FOR AS LONG AS THEY CAN BEFORE THEY SWITCH YOU TO A SHARES WHY BECAUSE THEY HAVE TO RECOUP PAYMENTS MADE TO THE BROKER FOR SELLING THEIR FUNDS REMEMBER THE FUND FIRM MAKES NO MONEY UP FRONT ON B SHARES BUT THE BROKER STILL GETS PAID THE REAL WAY YOU PAY FOR B SHARES IS THE CONTINUING 12B1 FEES SAYS MR PHILLIPS IT'S NOT SO MUCH A QUICK SURPRISE WITH THE B SHARES IT'S MORE LIKE BEING NIBBLED TO DEATH BY DUCKS INVESTORS WITH 100000 OR MORE TO SPEND OFTEN FARE WORSE IN B SHARES BIG INVESTORS ARE USED TO GETTING BREAK POINTS ON THE FRONT LOAD THEY PAY FOR A SHARES MEANING THEY PAY A SMALLER COMMISSION FOR INVESTING BIG SUMS THE SALES COMMISSIONS FOR THAT SIZE INVESTMENT ARE OFTEN CUT BY A PERCENTAGE POINT OR MORE AND INVESTORS SHOVELING 1 MILLION INTO A FUND FREQUENTLY GET THEIR SALES CHARGES WAIVED ENTIRELY BUT THERE'S NO SUCH BREAK FOR BIG BUYERS IN B SHARES A LARGE INVESTOR WHO CASHES OUT EARLY PAYS THE FULL SALES CHARGE THE INDUSTRY IS PATTING ITSELF ON THE BACK SAYING THAT IT'S GIVING PEOPLE MORE CHOICES MR PHILLIPS SAYS RATHER THAN OFFERING A REAL CHOICE THOUGH HE CONTENDS B SHARES SIMPLY ARE A WAY OF OVERCOMING A SHORTTERM SALES OBSTACLE 9310050123 931005 CUTCO INDUSTRIES BUYBACK JERICHO NY CUTCO INDUSTRIES INC SAID IT PLANS TO REPURCHASE UP TO 50000 SHARES OF ITS COMMON STOCK FROM TIME TO TIME ON THE OPEN MARKET OR IN PRIVATE TRANSACTIONS THE COMPANY A BEAUTY SALON FRANCHISER HAS 790425 SHARES OUTSTANDING 9310050122 931005 WHO'S NEWS CAMPBELL SOUP NAMES CEO DAVID JOHNSON TO CHAIRMAN'S POST CAMDEN NJ CAMPBELL SOUP CO SAID ITS CHIEF EXECUTIVE DAVID W JOHNSON WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN FOLLOWING ROBERT J VLASIC'S ANNOUNCEMENT THAT HE WOULD RETIRE FROM THAT JOB NEXT MONTH MR VLASIC 67 YEARS OLD HAS SERVED AS CHAIRMAN FOR THE PAST FIVE YEARS AND HAS BEEN A MEMBER OF THE BOARD SINCE 1978 WHEN CAMPBELL ACQUIRED VLASIC FOODS INC HE WILL CONTINUE AS A DIRECTOR AND CHAIRMAN EMERITUS A SPOKESMAN SAID THAT THE NEW APPOINTMENT FOR MR JOHNSON 61 IS TESTAMENT TO THE BOARD'S SUPPORT FOR HIS LEADERSHIP MR JOHNSON HAS SERVED AS CHIEF EXECUTIVE SINCE JANUARY 1990 A NEWLY CREATED POSITION OF VICE CHAIRMAN WILL BE FILLED BY BENNETT DORRANCE 47 AN INDEPENDENT DIRECTOR AND SUBSTANTIAL SHAREHOLDER IN THE COMPANY HE IS THE SON OF JOHN T DORRANCE JR LONGTIME CHAIRMAN OF THE COMPANY AND A GRANDSON OF THE INVENTOR OF CONDENSED SOUP THE CHANGES AS APPROVED BY CAMPBELL'S BOARD WILL TAKE EFFECT NOV 18 FOLLOWING THE COMPANY'S ANNUAL MEETING 9310050121 931005 ATHLONE PLANS SPECIAL MEETING PITTSBURGH ATHLONE INDUSTRIES INC SAID IT WILL HOLD A SPECIAL MEETING OF SHAREHOLDERS NOV 8 TO CONSIDER THE COMPANY'S ACQUISITION BY STAINLESSSTEEL PRODUCER ALLEGHENY LUDLUM CORP ATHLONE SHAREHOLDERS MUST APPROVE THE 107 MILLION TRANSACTION 9310050120 931005 WORLD MARKETS MAJOR EUROPEAN BOURSES SCORE GAINS DEFYING EXPECTATIONS FOR PRESSURE FROM RUSSIAN TURMOIL A WALL STREET JOURNAL ROUNDUP LONDON EQUITIES GAINED UNEXPECTEDLY YESTERDAY AS INVESTORS TOOK A SUBDUED VIEW OF THE STRIFE IN RUSSIA FRANKFURT STOCK PRICES ALSO DEFIED EXPECTATIONS AND ENDED HIGHER IN RESPONSE TO RUSSIAN PRESIDENT BORIS YELTSIN'S CRACKDOWN ON REBEL HARDLINERS THE APPARENT SPEEDY RESOLUTION TO THE CRISIS WHICH HAD THREATENED TO CREATE EXTENDED TURMOIL ACROSS FINANCIAL MARKETS WAS SEEN BY THE END OF THE TRADING DAY AS AIDING STABILITY IN EUROPE TOKYO SHARES EDGED DOWN MONDAY THOUGH DECLINES WERE BROADLY BASED AS MOST INVESTORS WATCHED THE RUSSIAN SITUATION FROM THE SIDELINES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11194 UP 034 REFLECTING INCREASES IN ALL REGIONS HEALTH CARE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12016 UP 560 OR 49 WITH HOSPITAL CORP OF AMERICA OF THE US POSTING A 27 GAIN IN ITS LOCAL CURRENCY OILFIELD EQUIPMENT STOCKS TRAILED AT 11702 DOWN 172 OR 15 WITH DRESSER INDUSTRIES OF THE US SLIDING 28 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 284 POINTS TO 30677 THE FT 30STOCK INDEX CLIMBED 199 POINTS TO 23325 VOLUME WAS 5501 MILLION SHARES COMPARED WITH 6369 MILLION SHARES IN THE PREVIOUS SESSION MANY ANALYSTS HAD ASSUMED THAT EUROPEAN EQUITY MARKETS WOULD GET CRUSHED AFTER TENSIONS IN MOSCOW ESCALATED SUNDAY BUT MANY OF THE BIG BOURSES SCORED GAINS LONDON INVESTORS FOCUSED INSTEAD ON THE POSSIBILITY OF LOWER INTEREST RATES BASED ON EXPECTATIONS THAT BRITAIN'S CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE WILL RAISE TAXES IN HIS NOV 30 BUDGET IN A BID TO REDUCE THE GOVERNMENT'S BUDGET GAP BRITAIN'S BASE LENDING RATE NOW 6 THEN WOULD PROBABLY HAVE TO BE LOWERED TO MAKE TAX INCREASES PALATABLE AND STOCKS COULD BENEFIT UNDER A SCENARIO OF HIGHER TAXES AND LOWER INTEREST RATES RATE REDUCTIONS WOULD CUT YIELDS ON FIXEDINCOME INVESTMENTS WHICH WOULD MAKE CORPORATE FINANCING LESS EXPENSIVE THE LONDON MARKET EVENTUALLY REACTED BULLISHLY TO EVENTS IN MOSCOW GAINING AFTER THE LATESESSION SURRENDER OF HARDLINERS OPPOSING PRESIDENT YELTSIN OTHER LONDON FACTORS ALSO WERE BULLISH OVERRIDING A 263POINT DEDUCTION IN THE MAIN INDEX BECAUSE OF SHARES GOING EXDIVIDEND SHARES USUALLY RISE ON THE FIRST DAY OF THE FOURTH QUARTER CHARTBASED BEARS WHO HAD PREDICTED FT 100 SUPPORT AT 2970 WOULD CAVE IN WERE CONVINCINGLY ROUTED BY LAST WEEK'S RISE AND THE MARKET HAS SUCCESSFULLY SWALLOWED A RECENT SPATE OF RIGHTS ISSUES OF NEW STOCK IN FRANKFURT THE DAX 30STOCK INDEX ROSE 1163 POINTS TO 192372 FOLLOWING THE MARKET'S LACKLUSTER PERFORMANCE LAST WEEK SHARE PRICES BEGAN RISING YESTERDAY MORNING DESPITE ESCALATING VIOLENCE IN MOSCOW ANALYSTS SAID MR YELTSIN APPEARED TO REMAIN IN CONTROL OF THE POLITICAL SITUATION AND FRANKFURT INVESTORS REACTED POSITIVELY THOUGH CAUTIOUSLY OF THE DAX STOCKS 25 ROSE AND 5 FELL PRICES WERE SUPPORTED BY TRADERS COVERING SHORT POSITIONS IN WHICH BORROWED STOCK IS SOLD IN HOPES OF PRICE DECLINES THAT WOULD ALLOW BUYING STOCK TO REPLACE THE BORROWED SHARES AND REAP A PROFIT IN A RISING MARKET SHORT POSITIONS ARE COVERED TO LIMIT LOSSES IN PARIS SHARES OPENED WEAKLY BUT DEALINGS WERE CALM CONSIDERING THE RUSSIAN SIEGE AND PRICES RECOVERED TO FINISH WITH SOLID GAINS THE MARKET FOCUSED INSTEAD ON THE PRIVATIZATION OF BANQUE NATIONALE DE PARIS IN AMSTERDAM STOCKS ADVANCED ALSO FOLLOWING A WEAK OPENING ON WORRIES ABOUT THE UNREST IN RUSSIA PRICES RECOVERED AS IT BECAME EVIDENT THAT MR YELTSIN HAD THE BACKING OF THE RUSSIA ARMY AND WAS EXERTING CONTROL OVER THE SITUATION IN ZURICH PRICES PUSHED HIGHER AFTER INITIAL UNEASINESS ABOUT THE RUSSIAN POLITICAL CRISIS GAVE WAY TO RELIEF LATE IN THE SESSION ON NEWS THAT HARDLINERS WERE BEGINNING TO SURRENDER INDUSTRIAL AND CHEMICAL SHARES LED THE ADVANCE WITH SOME BANKING SHARES GETTING ONTO THE BANDWAGON IN STOCKHOLM WHERE THE RUSSIAN UPSET ALSO DEPRESSED PRICES INITIALLY A RALLY BEGAN AFTER THE MOSCOW SITUATION SEEMED TO STABILIZE THOUGH STOCKS' REBOUND LEFT THE MAIN INDEX DOWN SLIGHTLY AT THE FINISH AND IN BRUSSELS PRICES FELL ON NERVOUSNESS ABOUT THE BELGIAN FRANC AND THE POWER STRUGGLE IN MOSCOW IN TOKYO THE NIKKEI 225STOCK INDEX WHICH GAINED 17742 POINTS FRIDAY SLIPPED 1870 TO 2026443 IN TRADING EARLY TUESDAY IN TOKYO THE NIKKEI ROSE 14151 POINTS TO 2040594 MONDAY'S FIRSTSECTION VOLUME SKIDDED TO AN ESTIMATED 180 MILLION SHARES FROM 3621 MILLION SHARES IN THE PREVIOUS SESSION LOSERS OVERWHELMED GAINERS 591372 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 784 POINTS FRIDAY EDGED DOWN 006 POINT TO 163403 TOKYO PRICES SANK IN THE FIRST 15 MINUTES OF TRADING ON REPORTS FROM RUSSIA THAT THOUSANDS OF ARMED ANTIGOVERNMENT PROTESTERS ON SUNDAY HAD SMASHED THROUGH THE SIEGE OF RUSSIA'S PARLIAMENT AND THAT ENSUING CLASHES CAUSED DEATHS AND INJURIES AMONG CIVILIANS AND SOLDIERS PRICES RECOVERED THROUGHOUT THE DAY ON BARGAINHUNTING AND MANIPULATIVE BUYING BY DEALERS AND INVESTMENT TRUST FUNDS TO PAINT SENTIMENT ROSIER THAN IT WAS SEMICONDUCTOR STOCKS WERE AMONG THE BIGGEST GAINERS ON A WEEKEND NEWS REPORT THAT THREE TOP CHIP MAKERS IN JAPAN WILL INVEST HUGE SUMS OF MONEY SOON TO IMPROVE THEIR PLANTS AND EQUIPMENT OTHERWISE WINNERS INCLUDED SOME RECENT LAGGARDS IN THE NONBANKING FINANCIAL AND TECHNOLOGY SECTORS LARGECAPITALIZATION SHARES DOMINATED DEALINGS AS BARGAINHUNTERS EMERGED BUT RECENT STRONG PERFORMERS SUCH AS RETAILERS LOST TO PROFITTAKING IN HONG KONG DESPITE A CAUTIOUS START BECAUSE OF SOUR SINOBRITISH RELATIONS AND THE TURMOIL IN RUSSIA THE MARKET SCORED ITS FOURTH CONSECUTIVE GAIN AND ADVANCED SHARPLY TO A RECORD FINISH SURPASSING THE HIGH SET LAST THURSDAY PARTICIPANTS FOCUSED ON THE RECENT BULLISHNESS UNDERPINNING THE MARKET ON AND INTEREST BY OVERSEAS INSTITUTIONAL INVESTORS IN HONG KONG RECOMMENDATIONS TO BUY HONG KONG STOCKS HAVE COME FROM SOME OF THE WORLD'S MOST INFLUENTIAL STOCKMARKET PROFESSIONALS AND HONG KONG INVESTORS HOPED A BUYING SURGE WOULD RESULT THE HANG SENG INDEX CLIMBED 6810 POINTS TO 774432 IT HAS RISEN 39 IN THE PAST FOUR SESSIONS AND 40 THIS YEAR 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 9310050119 931005 TECHNOLOGY INVESTOR WHO HELPED FOUND MICROSOFT PAYS 175 MILLION FOR METRICOM STAKE BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP COFOUNDER PAUL ALLEN INVESTED 175 MILLION IN METRICOM INC CASTING A SUDDEN SPOTLIGHT ON A LITTLEKNOWN COMPANY WITH A SPEEDY AND INEXPENSIVE TECHNOLOGY FOR SENDING ELECTRONICMAIL MESSAGES WITHOUT WIRES MR ALLEN PAID 15 A SHARE FOR 12 MILLION SHARES OF METRICOM OR ABOUT A 124 STAKE THE LOS GATOS CALIF COMPANY SAID HE ALSO RECEIVED TWOYEAR WARRANTS TO BUY AN ADDITIONAL 408333 SHARES AT 20 EACH THE COMPANY ADDED THE INVESTMENT CAUSED METRICOM'S STOCK WHICH HAD RISEN MORE THAN 50 SINCE MIDSEPTEMBER TO JUMP ANOTHER 450 A SHARE YESTERDAY TO CLOSE AT 2025 IN NATIONAL OVERTHECOUNTER TRADING MR ALLEN A SEATTLE INVESTOR LEFT MICROSOFT IN 1983 BUT REMAINS A MAJOR SHAREHOLDER YESTERDAY HE WASN'T AVAILABLE TO COMMENT ON HIS METRICOM INVESTMENT METRICOM FOUNDED IN 1985 BEGAN BY SELLING WIRELESS DATA NETWORKS TO ALLOW FIELD WORKERS AT UTILITIES AND INDUSTRIAL COMPANIES TO SEND AND RECEIVE COMPUTER MESSAGES USING RADIO LINKS BUT THE COMPANY RECENTLY ANNOUNCED A MOVE TO MAKE ITS NETWORKS MORE BROADLY AVAILABLE USING APPLE COMPUTER INC AS ONE OF ITS FIRST TEST SITES EQUIPPED WITH POWERBOOK PORTABLE COMPUTERS AND WIRELESS MODEMS EMPLOYEES OF THE BIG PERSONALCOMPUTER MAKER HAVE BEEN USING METRICOM'S TECHNOLOGY TO SWAP ELECTRONIC MESSAGES AROUND APPLE'S CUPERTINO CALIF HEADQUARTERS METRICOM SAID IT WILL USE MONEY FROM MR ALLEN'S INVESTMENT TO BEGIN SETTING UP TRANSMISSION FACILITIES IN SELECTED CITIES THAT WILL LET THE COMPANY GO AFTER OTHER PC USERS WE WILL BEGIN RAMPING UP THE INFRASTRUCTURE SAID ROBERT DILWORTH METRICOM'S PRESIDENT WE HOPE TO HAVE THE REST OF THE BAY AREA UP AND RUNNING BY THE END OF THE YEAR SEVERAL OTHER COMPANIES HAVE A HEAD START IN SETTING UP NATIONAL WIRELESS DATA NETWORKS THEY INCLUDE ARDIS A JOINT VENTURE OF MOTOROLA INC AND INTERNATIONAL BUSINESS MACHINES CORP AND RAM MOBILE DATA OWNED BY BELLSOUTH CORP AND RAM BROADCASTING CORP BUT ANALYSTS SEE IMPORTANT ADVANTAGES TO METRICOM'S APPROACH SIMILAR TO CELLULAR PHONES ITS NETWORK SPLITS A GEOGRAPHIC AREA INTO SMALL SECTIONS CALLED CELLS EACH WITH ITS OWN TRANSMITTER TO HANDLE DIGITAL MESSAGES CONVENTIONAL TRANSMITTERS CAN COST HUNDREDS OF THOUSANDS OF DOLLARS EACH METRICOM USING FREQUENCIES THAT DON'T REQUIRE LICENSES FROM THE FEDERAL COMMUNICATIONS COMMISSION SPLITS AN AREA INTO SMALLER CELLS WITH TRANSMITTERS THAT COST ONLY A FEW HUNDRED DOLLARS EACH AND METRICOM SAYS ITS SYSTEM COSTS LESS FOR CUSTOMERS AND CAN SEND MESSAGES FOUR TIMES FASTER THAN OTHER WIRELESS NETWORKS I'M REALLY EXCITED ABOUT THEM SAID JIM OPFER A WIRELESSCOMMUNICATIONS CONSULTANT IN TORRANCE CALIF I THINK THIS COULD CHANGE A LOT OF THE PARADIGMS OF WIRELESS COMMUNICATIONS IN TERMS OF SPEED AND BANDWIDTH BUT MARTIN LEVETIN A SENIOR VICE PRESIDENT WITH RAM SAID THAT METRICOM'S SYSTEM MAY NOT WORK AS WELL ON A NATIONAL LEVEL AS THE RAM AND ARDIS SYSTEMS WHICH CAN TRACK CUSTOMERS EASILY AS THEY ROAM FROM CITY TO CITY 9310050118 931005 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY'S TRADE COMMISSIONER LEON BRITTAN SAID HE WANTS THE EC FILM INDUSTRY TO BE PROTECTED BY A CULTURAL SPECIFICITY CLAUSE WITHIN A WORLD TRADE AGREEMENT AT A MEETING OF EC FOREIGN MINISTERS MR BRITTAN ARGUED THAT HAVING FILMS INCLUDED UNDER SPECIAL RULES IN A WORLD TRADE DEAL BEING NEGOTIATED UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE WOULD SHIELD THE EUROPEAN INDUSTRY FROM ATTACKS BY THE US AND OTHER COUNTRIES UNDER THEIR OWN TRADE DEFENSES THE US HAS COMPLAINED THAT EC GOVERNMENTS UNFAIRLY SUBSIDIZE THEIR FILM AND TELEVISION PRODUCTION INDUSTRIES THE EC INSISTS SOME SUBSIDIES ARE NECESSARY FOR EUROPEAN FILMMAKERS TO COMPETE AGAINST BIGBUDGET HOLLYWOOD PRODUCTIONS THAT HAVE THE ADVANTAGE OF A HUGE US DOMESTIC AUDIENCE MEANWHILE DISAGREEING WITH MR BRITTAN FRENCH FOREIGN MINISTER ALAIN JUPPE SAID HIS GOVERNMENT BELIEVES THAT ONLY A TOTAL GATT EXEMPTION WOULD ALLOW THE EC TO ENFORCE ITS 1989 LAW DESIGNED TO ENSURE SUFFICIENT EUROPEANPRODUCED PROGRAMS ON EC TELEVISION STATIONS TREATMENT OF AUDIOVISUAL PRODUCTS IS TO BE ON THE AGENDA WHEN EC AND US TRADE REPRESENTATIVES MEET IN BRUSSELS ON OCT 13 AN OFFICIAL OF A JAPANESE CONTRACTOR WAS ARRESTED IN A CONSTRUCTION BRIBERY SCANDAL THAT HAS EMBARRASSED THE GOVERNMENT IN TRADE NEGOTIATIONS WITH THE US TAKASHI HASHIMOTO 57 YEARS OLD VICE PRESIDENT OF TAISEI CORP WAS ARRESTED IN CONNECTION WITH BIDDING ON A HOSPITAL PROJECT PREVIOUS ARRESTS NETTED TWO GOVERNORS A MAYOR AND OTHER CONSTRUCTION EXECUTIVES ALLEGED RIGGING OF PUBLICWORKS CONTRACTS HAS FUELED US CLAIMS THAT UNFAIR PRACTICES SHUT FOREIGN CONTRACTORS OUT OF JAPAN CROATIA DEVALUED THE DINAR CURRENCY 16 IN AN EMERGENCY PACKAGE AIMED AT CURBING INFLATION WHICH IS SOARING TOWARD AN ANNUAL RATE OF 2500 THE GOVERNMENT ALSO RESTRICTED INCREASES IN SALARIES NOW AVERAGING 60 A MONTH TO 4 MONTHLY UNTIL YEAR END AND CUT SALES TAXES BY 20 PRICES ARE CLOSE TO THOSE IN WESTERN EUROPE THE JOBLESS RATE STANDS AT 18 FOREIGN INVESTMENT HAS DRIED UP SINCE THE WAR BROKE OUT IN 1991 WITH A CASE BACKLOG SURE TO WORSEN AS MORE COUNTRIES JOIN THE COUNCIL OF EUROPE THE 31NATION ASSEMBLY AT A SUMMIT THIS WEEKEND IN VIENNA PLANS TO MERGE THE EUROPEAN COMMISSION ON HUMAN RIGHTS AND THE EUROPEAN COURT OF HUMAN RIGHTS TO SPEED UP PROCEDURES CASES ALLEGING HUMANRIGHTS VIOLATIONS NOW ARE REFERRED TO THE COMMISSION WHICH DETERMINES COURT ADMISSIBILITY THE COMMISSION PROMOTES SETTLEMENTS OR REFERS CASES TO THE COURT A PROCESS THAT CAN LAST SIX YEARS ROMANIA LAST WEEK WAS APPROVED AS THE 32ND MEMBER OF THE COUNCIL BASED IN STRASBOURG FRANCE AND OTHER EASTERN EUROPEAN COUNTRIES ARE EXPECTED TO JOIN CHINESE POLICE DETAINED A BEIJING JOURNALIST JUST AS SHE WAS TO DEPART FOR A RESEARCH PROGRAM AT COLUMBIA UNIVERSITY IN NEW YORK CHINESE MEDIA SOURCES SAID GAO YU 49 YEARS OLD WORKED FOR THE SEMIOFFICIAL CHINA NEWS SERVICE FOR 10 YEARS UNTIL 1988 THEN MOVED TO THE NOWDEFUNCT ECONOMIC STUDIES WEEKLY SET UP BY INTELLECTUAL DISSIDENTS LATER JAILED FOR ROLES IN THE 1989 DEMOCRACY MOVEMENT IT WASN'T CLEAR WHETHER CHARGES HAD BEEN FILED MS GAO WAS DETAINED FOR ALMOST TWO YEARS AFTER THE 1989 CRACKDOWN SWEDEN PROPOSED TO ABOLISH DOUBLE TAXATION OF DIVIDENDS THE PLAN ALSO WOULD REDUCE THE CORPORATE TAX RATE TO 28 FROM 30 AND HALVE TO 125 THE LEVY ON CAPITAL GAINS FROM STOCK TRANSACTIONS THE CHANGES IF APPROVED BY PARLIAMENT WOULD TAKE EFFECT NEXT JAN 1 SMALLBUSINESS TAX RATES ALSO WOULD BE REDUCED BUSINESSES AND GOVERNMENT AGENCIES IN INDONESIA WERE WARNED TO GUARD AGAINST PEOPLE PRETENDING TO BE JOURNALISTS AND DEMANDING MONEY FROM NEWS SOURCES THE INDONESIAN JOURNALISTS ASSOCIATION ISSUED THE WARNING IN A NEW ATTEMPT TO DEAL WITH AN OLD PROBLEM MANY INDONESIAN ORGANIZATIONS ROUTINELY GIVE OR OFFER CASH TO REPORTERS COMPANIES HAND OUT MONEY TO GET PUBLICITY FOR A NEW PRODUCT OR TO AVOID COVERAGE WHILE A GROWING NUMBER OF INDONESIAN PUBLICATIONS FORBID EMPLOYEES FROM ACCEPTING CASH THE PRACTICE IS SO INGRAINED THAT A DICTIONARY DEFINES WARTAWAN AMPLOP AS A PAIDOFF JOURNALIST BESTOWING MONEY FAVORS OR GIFTS IS COMMON THROUGHOUT ASIA IN THAILAND FOR EXAMPLE SOME POLITICAL PARTIES UNDERWRITE SUPPORTIVE REPORTERS IN MALAYSIA FRIENDLY JOURNALISTS SOMETIMES GET COUNTRY CLUB MEMBERSHIPS AND STOCK TIPS BUT REPORTERS AREN'T THE ONLY RECIPIENTS IN INDONESIA MANY BANKERS GET MONEY FROM CUSTOMERS AS THANKS FOR LOAN APPROVALS AND GOVERNMENT OFFICIALS FOR ISSUING PERMITS THE EUROPEAN COMMUNITY BROADENED ITS CONTACTS WITH EASTERN EUROPE BY SIGNING AGREEMENTS DESIGNED TO TIGHTEN POLITICAL AND ECONOMIC LINKS WITH THE CZECH REPUBLIC AND SLOVAKIA THE ACCORDS WOULD EASE RESTRICTIONS ON EC IMPORTS OF FARM GOODS TEXTILES AND MANUFACTURED PRODUCTS LIQUOR CONSUMPTION IN POLAND JUMPED MORE THAN 80 TO AN AVERAGE OF 29 GALLONS A PERSON THIS YEAR FROM 16 GALLONS IN 1983 HEALTH OFFICIALS SAID 9310050117 931005 DELTA AIR OFFERS BONUS FOR TRAVEL ATLANTA DELTA AIR LINES SAID IT IS OFFERING ITS SHUTTLE PASSENGERS BONUS CERTIFICATES FOR TRAVEL ON DELTA'S TRANSATLANTIC ROUTES PASSENGERS WILL EARN ONE CERTIFICATE FOR EVERY THREE ROUND TRIPS FLOWN ON DELTA SHUTTLE BETWEEN TODAY AND JAN 31 1994 THE CERTIFICATES CAN BE REDEEMED FOR TRAVEL ON ANY OF DELTA'S FLIGHTS TO EUROPE INDIA OR ISRAEL ONE CERTIFICATE CAN BE EXCHANGED FOR A ROUNDTRIP CLASS UPGRADE FREE COMPANION TICKET WHEN PURCHASING A FULL FARE TICKET IN THE SAME CLASS OF SERVICE OR A 100 DISCOUNT ON A ROUNDTRIP TICKET AT FULL ECONOMY BUSINESS OR FIRSTCLASS FARES 9310050116 931005 QUARTERLY MUTUAL FUNDS REVIEW POP THE CHAMPAGNE ALMOST EVERYBODY IS NO 1 BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHO'S ON FIRST IF IT'S THE MUTUALFUND INDUSTRY JUST ABOUT EVERYBODY FUND RESEARCHER LIPPER ANALYTICAL SERVICES INC THIS YEAR SENT OUT 636 CERTIFICATES PROCLAIMING DIFFERENT MUTUAL FUNDS AS NO 1 PERFORMERS BASED ON FUND RESULTS THROUGH DECEMBER 1992 I THINK IT IS STILL POSSIBLE NOT TO GET AN AWARD SAYS IAN MACKINNON HEAD OF FIXED INCOME AT VANGUARD GROUP THE COUNTRY'S SECONDLARGEST FUND COMPANY BUT I'M NOT SURE QUITE HOW THAT'S DONE FOR THE INDUSTRY'S 4000PLUS MUTUAL FUNDS GETTING LABELED NO 1 BY LIPPER ANALYTICAL IS A BIG DEAL A FUND WILL OFTEN BRAG ABOUT ITS SUCCESS IN ADVERTISEMENTS AND MARKETING MATERIAL SENT TO NEW AND PROSPECTIVE SHAREHOLDERS THE HOOPLA FREQUENTLY PROMPTS INVESTORS TO SHOVEL EVEN MORE MONEY INTO THE FUND BUT CRITICS ARGUE THERE ARE SO MANY NO 1 FUNDS THAT THE LABEL HAS LOST MEANING THIS YEAR FOR INSTANCE VANGUARD PICKED UP A CERTIFICATE NAMING ITS INTERMEDIATETERM US TREASURY BOND FUND AS THE INDUSTRY'S NO 1 PERFORMER IN 1992 NEVER MIND THAT THE VANGUARD FUND ACTUALLY RANKED AS THE INDUSTRY'S 697TH BEST PERFORMER AMONG ALL BOND FUNDS WHEN IT COMES TO THE LIPPER CERTIFICATES WHAT COUNTS IS YOUR PERFORMANCE WITHIN YOUR CATEGORY AND ON THAT BASIS THE VANGUARD FUND WAS NO 1 MUSCLING ASIDE ITS FIVE OTHER COMPETITORS IT'S LIKE YOUR KID'S SWIMMING CLASS WHERE YOUR KID COMES IN FIFTH AND GETS A BLUE RIBBON SAYS MR MACKINNON WE TRY NOT TO TAKE THE CERTIFICATES TOO SERIOUSLY THE ONEYEAR STUFF WE GENERALLY FILE IN A DRAWER EVENTUALLY THEY FIND THEIR WAY INTO THE RECYCLING BIN THE FIVE AND 10YEAR AWARDS FIND THEIR WAY INTO AN OCCASIONAL FRAME T ROWE PRICE JAPAN FUND ALSO GOT A LIPPER CERTIFICATE FOR ITS 1992 PERFORMANCE LAST YEAR THE FUND DID BETTER THAN ANY OF THE OTHER FOUR FUNDS THAT SPECIALIZE IN JAPANESE STOCKS UNFORTUNATELY THE T ROWE PRICE FUND STILL LOST 134 IT'S A HELL OF AN ACHIEVEMENT SAYS A T ROWE PRICE SPOKESMAN THERE'S SOME HONOR IN BEING THE BEST OF THE WORST HOW COME THERE ARE SO MANY NO 1 PERFORMERS WHEN FIGURING OUT WHO RANKS AS NO 1 LIPPER ANALYTICAL USES A HOST OF DIFFERENT FUND CATEGORIES AND A VARIETY OF TIME PERIODS ROUGHLY 5 OF FUNDS RANKED NO 1 BASED ON THEIR CALENDAR 1992 PERFORMANCE FOR THOSE WITH LONGER TRACK RECORDS THE ODDS OF GETTING THE TOP SPOT WERE EVEN BETTER ALMOST 11 OF THE FUNDS THAT WERE AROUND FOR THE 15 YEARS THROUGH 1992 RECEIVED A CERTIFICATE PROCLAIMING THEM AS NO 1 BASED ON 15YEAR PERFORMANCE MANY FUNDS EARN MORE THAN ONE CERTIFICATE IN EARLY 1992 FOR INSTANCE THE 36 BILLION INVESCO INDUSTRIAL INCOME FUND PICKED UP SIX CERTIFICATES FROM LIPPER NAMING IT AS THE NO 1 EQUITYINCOME FUND FOR THE ONE FIVE 10 20 25 AND 30 YEARS THROUGH THE END OF 1991 IF YOU'RE NOT THE NO 1 FUND AT SOME POINT IN THE HISTORY OF THE FUND YOU'RE DOING SOMETHING WRONG SAYS AN INVESCO SPOKESWOMAN LIPPER SAYS IT DIDN'T DEVISE THE CERTIFICATES TO HELP MUTUAL FUNDS WITH THEIR ADVERTISING OUR INTENTION WAS TO REWARD MANAGERS SAYS FRANK HARRISON A SENIOR VICE PRESIDENT ONLY RECENTLY DID THIS BECOME AN ADVERTISING PHENOMENON A MICHAEL LIPPER LIPPER ANALYTICAL'S PRESIDENT EXPLAINS THAT THE FIRM'S ELABORATE SYSTEM OF FUND CATEGORIES WAS DESIGNED TO HELP MUTUAL FUND BOARDS WHO MUST DECIDE EACH YEAR WHETHER TO RENEW A FUND'S INVESTMENT ADVISORY CONTRACT IT'S ALSO MEANT TO ASSIST MUTUALFUND MANAGEMENT COMPANIES WHO USE LIPPER'S SYSTEM TO SET COMPENSATION FOR PORTFOLIO MANAGERS IN BOTH CASES IT'S HELPFUL TO KNOW HOW COMPETING FUNDS HAVE PERFORMED EVEN IF THERE AREN'T MANY COMPETITORS IN THE SAME CATEGORY BUT WHAT ABOUT THOSE ADS TOUTING FUNDS AS NO 1 BASED ON NARROWLY DEFINED FUND CATEGORIES MR LIPPER SAYS SUCH ADS ARE FAR LESS COMMON THAN THEY WERE A FEW YEARS AGO NONETHELESS VANGUARD CHAIRMAN JOHN C BOGLE THINKS THE ADVERTISING OF HOTPERFORMING FUNDS IS OUTRAGEOUSLY OUT OF HAND IT'S WRONG AND MISLEADING ARGUES MR BOGLE YOU'RE NOT TALKING ABOUT THE FUTURE YOU'RE TALKING ABOUT THE PAST FUND MANAGERS ARE ALL TOO AWARE THAT PAST PERFORMANCE IS OFTEN A POOR GUIDE TO FUTURE RESULTS AND THAT THERE ARE MANY FUNDS THAT CAN CLAIM TO BE NO 1 NONETHELESS MANAGERS STILL PRIZE THEIR LIPPER CERTIFICATES MANY MANAGERS FRAME THE CERTIFICATES AND HANG THEM IN THEIR OFFICES OR IN THE COMPANY'S BOARDROOM OTHERS TAKE A LOWERKEY APPROACH WE JUST HAND THEM TO THE PORTFOLIO MANAGERS AND CONGRATULATE THEM SAYS STANLEY EGENER PRESIDENT OF NEUBERGER & BERMAN MANAGEMENT THEY JUST FILE THEM AWAY I DON'T THINK THEY HAVE IT TATTOOED ON THEIR CHESTS 9310050115 931005 CREDIT MARKETS EUROPEAN BOND MARKETS RECOVER EARLY LOSSES US REMAINS CALM IN FACE OF RUSSIAN UNREST BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TURMOIL IN RUSSIA DIDN'T MEAN TURMOIL IN THE WORLD'S BOND MARKETS YESTERDAY AS RUSSIAN PRESIDENT BORIS YELTSIN CALLED ON THE ARMY TO SUPPRESS A REBELLIOUS PARLIAMENT IN A BLOODY CONFRONTATION SOME IN THE BOND MARKETS WORRIED THAT RUSSIA'S POLITICAL LEADERSHIP WAS IN DANGER OF CHANGING THOSE FEARS RESULTED IN SOME PRICE DROPS IN SOME OF THE WORLD'S BOND MARKETS PARTICULARLY GERMANY BUT MANY OF THOSE LOSSES TURNED INTO GAINS WHEN NEWS ORGANIZATIONS REPORTED THAT SURVIVORS OF THE CONFRONTATION AT RUSSIA'S PARLIAMENT HAD SURRENDERED MANY OF THE EUROPEAN BOND MARKETS HAD EARLY LOSSES FOLLOWING A HECTIC SELLOFF IN THE MARKET FOR GERMAN GOVERNMENT BONDS BUT RECOVERED NICELY AS THE GERMAN MARKET RECOVERED SAID THOMAS PRAPAS A MANAGING DIRECTOR AT CLEMENTE CAPITAL A MONEY MANAGEMENT FIRM WITH EXPERTISE IN INTERNATIONAL BOND MARKETS THE GERMAN BOND MARKET SEEMED TO GIVE ENCOURAGEMENT TO THE OTHER MARKETS MR PRAPAS SAID PARTLY BECAUSE OF TIMING THE EVENTS IN RUSSIA OCCURRED OVER A WEEKEND WHEN MOST WORLD BOND MARKETS WERE CLOSED THE TURMOIL MADE NO BIG WAVES IN BOND TRADING WITH MUCH OF THE ACTION IN RUSSIA TAKING PLACE EARLY IN THE DAY THE US BOND MARKETS HAD LITTLE TO REACT TO WHEN TRADING BEGAN YESTERDAY MORNING PRICES ENDED NARROWLY MIXED THE 30YEAR US TREASURY BOND DROPPED JUST 1/8 POINT OR 125 FOR A BOND WITH 1000 FACE VALUE TO 103 12/32 WHILE THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE ROSE TO 6 FROM 599 ON FRIDAY THE 10YEAR NOTE ROSE 2/32 TO 103 3/32 TO YIELD 533 MOST EUROPEAN GOVERNMENT BOND MARKETS OPENED LOWER IN LINE WITH THE GERMAN BOND MARKET AS RUSSIAN ARMY TROOPS LOYAL TO PRESIDENT YELTSIN FOUGHT TO DISLODGE MEMBERS OF THE DISSOLVED LEGISLATURE FROM THE PARLIAMENT BUILDING BUT PRICES BEGAN TO PICK UP AS IT BECAME CLEAR THAT THE LEGISLATORS WOULD SURRENDER IN THE MARKET FOR GERMAN BONDS THE BENCHMARK 65 COUPON 10YEAR NOTES ENDED TRADING IN GERMANY WITH GAINS OF 019 POINT AT 10311 TO YIELD 606 DOWN FROM 609 ON FRIDAY BRITISH GOVERNMENT BONDS OR GILTS ROSE SLIGHTLY AFTER SOME EARLY LOSSES THE BENCHMARK 9 COUPON TREASURY NOTE MATURING IN 2008 ROSE 1/8 POINT TO 116 3/32 TO YIELD 722 DOWN FROM 723 AMONG FRENCH TREASURYS OR OBLIGATIONS ASSIMILABLES DU TRESOR OAT THE 6 3/4 COUPON NOTES MATURING IN 2003 ROSE 004 POINT FROM LATE FRIDAY IN PARIS TO 10512 TO YIELD 606 COMPARED WITH 607 AMONG SWISS BONDS 45 COUPON NOTES MATURING IN 2002 ROSE 015 POINT TO 10125 TO YIELD 432 DOWN FROM 434 THE BELGIAN GOVERNMENT'S 9 COUPON OBLIGATIONS LINEAIRES OLO MATURING IN 2003 ROSE 05 POINT BY LATE YESTERDAY IN BELGIUM TO 11125 FOR A YIELD OF 73 DOWN FROM 738 THE DUTCH GOVERNMENT'S 6 1/2 BOND MATURING IN 2003 ROSE 004 POINT TO 10422 TO YIELD 590 THE LARGEST ASIAN GOVERNMENT BOND MARKET REACTED LITTLE TO THE EVENTS IN RUSSIA THE PRICE OF THE BENCHMARK JAPANESE GOVERNMENT BOND THE 55 COUPON NOTE MATURING IN 2002 ROSE 003 POINT TO 11134 TO YIELD 374 WHEN PEOPLE SAW THE RESISTERS COMING OUT OF THE WHITE HOUSE WHERE THE RUSSIAN PARLIAMENT IS HOUSED WITH THEIR HANDS UP IT RELIEVED SOME OF THE TENSION IN THE WORLD'S BOND MARKETS MR PRAPAS SAID IT SEEMS THAT THERE IS A RESOLUTION COMING SINCE WE APPEAR TO HAVE NO EVIDENCE OF UPRISING OR CIVIL DISORDERS ANYWHERE ELSE IN RUSSIA HE SAID IT'S BEEN PRETTY CLEAR FOR A WEEK NOW THAT YELSTIN HAD THE UPPER HAND AND IT WAS A QUESTION OF EXTRACTING HIMSELF FROM THE SITUATION SAID DAVID KENERSEN A PORTFOLIO MANAGER AT VAN ECK GLOBAL INCOME FUND I DON'T EXPECT VERY MUCH OUT OF THE EUROPEAN BOND MARKETS AS A RESULT OF THIS CRISIS HE SAID IT MADE IT CLEAR THAT THE BALANCE OF POWER RESTS WITH YELTSIN BUT IT SERVES AS A REMINDER THAT RUSSIA HAS SOME VERY DIFFICULT PROBLEMS TO RESOLVE PERHAPS THE BEST PROOF OF INVESTOR CONFIDENCE IN MR YELTSIN WAS TRADING IN THE HIGHLY VOLATILE MARKET FOR DOLLARDENOMINATED LOAN PAPER ISSUED BY VNESHEKONOMBANK OR BANK FOR FOREIGN ECONOMIC AFFAIRS ACCORDING TO EMERGING MARKETS REPORT A NEWS SERVICE OWNED BY DOW JONES & CO THE DEFAULTED DEBT PAPER DROPPED JUST 5/8 POINT YESTERDAY OR 625 FOR EACH 1000 OF FACE VALUE TO 345 ASIDE FROM THE NEWS OUT OF RUSSIA LITTLE ELSE TRANSPIRED YESTERDAY AND THE MARKET WAS HELD TO WELLDEFINED RANGES ON EXTREMELY LOW VOLUME I THINK EVERYBODY GOT CONFUSED AND CELEBRATED COLUMBUS DAY TODAY INSTEAD OF NEXT MONDAY SAID JAY GOLDINGER A TRADER AT CAPITAL INSIGHT INC IN BEVERLY HILLS CALIF WITH THE KEY SEPTEMBER EMPLOYMENT REPORT DUE TO BE RELEASED FRIDAY MOST MARKET PARTICIPANTS WERE CONTENT TO LET TREASURYS DRIFT UNTIL THE JOBS DATA ARE RELEASED THE MARKET COULD BE IN FOR MORE OF THE SAME TRADERS ADDED THE MARKET SEEMS TO HAVE SETTLED AROUND THE 6 LEVEL ON THE BOND AND IT WILL TAKE A DRAMATIC DEVELOPMENT TO DEVIATE FROM THIS LEVEL SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS TRADERS AND INVESTORS WILL BE PAYING CLOSE ATTENTION TO FRIDAY'S EMPLOYMENT REPORT LOOKING FOR ANY SIGNS THAT THE ECONOMIC BACKDROP MAY BE CHANGING FORECASTS FOR THE SEPTEMBER FIGURES CENTER ON AN INCREASE IN NONFARM PAYROLL EMPLOYMENT OF ABOUT 150000 THAT WOULD FOLLOW AN UNEXPECTEDLY WEAK READING FOR AUGUST WHEN PAYROLLS CONTRACTED BY 39000 YESTERDAY THE US TREASURY SOLD 2374 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 296 FOR A COUPONEQUIVALENT YIELD OF 302 UP FROM 296 AT LAST WEEK'S AUCTION THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 308 FOR A COUPONEQUIVALENT YIELD OF 317 UP FROM 311 AT LAST WEEK'S AUCTION HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED OCT 7 THE 13WEEK BILLS MATURE JAN 6 1994 AND THE 26WEEK BILLS MATURE APRIL 7 1994 CORPORATE BOND ISSUANCE WAS RELATIVELY SPARSE YESTERDAY AS ONLY 475 MILLION OF DEBT WAS PRICED IN TWO OFFERINGS IN THE INVESTMENTGRADE MARKET ABBOTT LABORATORIES PRICED A 200 MILLION BOND OFFERING WHILE CENTRAL & SOUTH WEST CORP'S SOUTHWESTERN ELECTRIC POWER CO ISSUED A 125 MILLION TWOTRANCHE DEAL BEST BUY CO TAPPED THE JUNK BOND MARKET WITH A 150 MILLION OFFERING RENCO STEEL INC HOWEVER HAD LESS LUCK POSTPONING A 100MILLION JUNK OFFERING BECAUSE OF ADVERSE MARKET CONDITIONS ONE SYNDICATE OFFICIAL SAID TRADING IN THE INVESTMENTGRADE MARKET WAS QUIET WITH YIELD SPREADS REMAINING UNCHANGED TRADERS SAID PRICES FOLLOWED TREASURYS WHICH WERE BASICALLY UNCHANGED AT THE CLOSE OF THE DAY TRADING IN THE JUNK BOND MARKET ALSO WAS LIGHT WITH PRICES REMAINING UNCHANGED STANDARD & POOR'S CORP UPGRADED CHRYSLER CORP AND CHRYSLER FINANCIAL CORP'S BONDS TO TRIPLEB FROM DOUBLEBPLUS LIFTING THE RATING TO INVESTMENT GRADE THE BONDS TRADED UP ONLY SLIGHTLY AS THE MARKET HAD ALREADY ASSUMED THE UPGRADE WOULD OCCUR ONE TRADER SAID THE CONSOLIDATED COMPANY'S OUTSTANDING DEBT TOTALED 128 BILLION IN JUNE S&P ALSO RAISED AUBURN HILLS TRUST'S SENIOR DEBT RATINGS TO TRIPLEB FROM DOUBLEBPLUS AND RAISED CFC'S SUBORDINATED DEBT AND CHRYSLER'S PREFERRED STOCK RATINGS TO TRIPLEBMINUS FROM DOUBLEBMINUS FINALLY S&P ASSIGNED A DOUBLEA RATING TO CFC'S COMMERCIAL PAPER WELLDESIGNED AND FORTUITOUSLY TIMED NEW PRODUCTS COUPLED WITH STEPS TO IMPROVE OPERATING EFFICIENCY HAVE ENHANCED CHRYSLER'S COMPETITIVE POSITION FINANCIAL PERFORMANCE IN RECENT QUARTERS HAS SIGNIFICANTLY EXCEEDED PRIOR EXPECTATIONS AND SOME ADDITIONAL GROWTH IN EARNINGS AND CASH FLOW OVER THE NEXT TWO TO THREE YEARS IS LIKELY S&P SAID RENCO STEEL A UNIT OF RENCO GROUP INC POSTPONED ITS OFFERING OF 100 MILLION OF 10YEAR SENIOR NOTES IN THE 144A MARKET FOR PRIVATE PLACEMENTS THE NOTES NONCALLABLE FOR FIVE YEARS WERE BEING MARKETED BY MERRILL LYNCH & CO WITH A 12 1/2 TO 12 3/4 COUPON SYNDICATE OFFICIALS SAID PROCEEDS FROM THE OFFERING BY THE DIVERSIFIED STEEL COMPANY WERE TO BE PASSED ON TO THE HOLDING COMPANY WHERE THEY COULD BE USED TO REFINANCE DEBT OR TO MAKE INVESTMENTS A COMPANY OFFICIAL SAID THE NOTES HAVE A COVENANT ALLOWING RENCO TO MAKE INTEREST PAYMENTS BY ISSUING ADDITIONAL BONDS INSTEAD OF PAYING CASH AT THE COMPANY'S OPTION THROUGH 1998 WHICH AT LEAST ONE INVESTOR FOUND UNATTRACTIVE RENCO HAD ORIGINALLY DECIDED TO TAP THE JUNK BOND MARKET A FEW MONTHS AGO WHEN THESE SOCALLED PAYINKIND OR PIK BONDS WERE READILY ACCEPTED BY INVESTORS AND INTEREST RATES WERE MORE ATTRACTIVE THE COMPANY OFFICIAL SAID CONVERSELY THE JUNK BOND MARKET SHOWED A STRONG APPETITE FOR BEST BUY'S 150 MILLION OFFERING OF SEVENYEAR SENIOR SUBORDINATED NOTES THE NOTES WERE PRICED AT PAR TO YIELD 8625 BELOW THE INITIAL PRICE TALK OF 875 THE DEAL WAS ALSO INCREASED BY 25 MILLION ON STRONG DEMAND ONE SYNDICATE OFFICIAL SAID THE NOTES CALLABLE IN FIVE YEARS ARE RATED BA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBPLUS BY S&P GOLDMAN SACHS & CO WAS LEAD MANAGER OF THE OFFERING BEST BUY OPERATES A CHAIN OF CONSUMER ELECTRONICS STORES MUNICIPAL BONDS FINISHED UNCHANGED TO 1/4 HIGHER IN CALM TRADING MONDAY HOLDING FIRM BEFORE A NUMBER OF SIZABLE PRICINGS NEXT SESSION IN TRADING OF CALIFORNIA ISSUES THE STATE'S 475 GENERAL OBLIGATION BONDS MATURING IN 2018 FINISHED 1/4 HIGHER AT 92 3/4 TO 92 7/8 YIELDING 528 MORE THAN 25 BILLION OF BONDS IS EXPECTED TO BE PRICED IN THE NEXT FEW DAYS ON TUESDAY ALONE ISSUERS INCLUDING NEW YORK CITY THE PORT AUTHORITY OF NEW YORK & NEW JERSEY AND CONNECTICUT HAVE SCHEDULED OFFERINGS OF MORE THAN 1 BILLION THE SPOTLIGHT IS ON NEW YORK CITY'S 600 MILLION FISCAL 1994 SERIES C GENERAL OBLIGATION BONDS WHICH ARE TO BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS NEXT SESSION THE OFFERING IS EXPECTED TO INCLUDE 5747 MILLION OF FIXEDRATE BONDS AND 253 MILLION OF ADJUSTABLERATE BONDS STANDARD & POOR'S CORP AFFIRMED ITS SINGLEAMINUS RATING FOR NEW YORK CITY'S FIXEDRATE BONDS MONDAY BUT NOTED THAT THE RATING OUTLOOK REMAINS NEGATIVE PRICES OF MORTGAGEBACKED SECURITIES BARELY BUDGED IN MONDAY'S SESSION AS MORTGAGE BANKERS AND INVESTORS MOSTLY STAYED AWAY FROM THE MARKET IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 6 ISSUES WERE DOWN 2/32 AT 99 16/32 WHILE FEDERAL HOME LOAN MORTGAGE CORP GOLD 6 ISSUES WERE UP 2/32 AT 99 1/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 6 ISSUES WERE UP 2/32 AT 98 30/32 THE TREASURY'S 10YEAR NOTE USED AS A PRICING BENCHMARK ENDED UP 3/32 AT 103 6/32 TO YIELD 5327 MANY DEALERS THINK MORTGAGES WILL TRADE IN SYNC WITH INTEREST RATES FOR THE NEAR FUTURE THAT WOULD MEAN MORTGAGES WILL CHEAPEN IN RELATION TO TREASURYS IF RATES FALL THEY WOULD BECOME MORE VALUABLE COMPARED WITH TREASURYS IF RATES RISE THIS SESSION THE FEDERAL HOME LOAN MORTGAGE CORP ANNOUNCED A 1 BILLION ISSUE OF MODIFIABLE AND COMBINABLE STRIPPED MORTGAGEBACKED SECURITIES BACKED BY 7 SECURITIES THE ISSUE GIVES INVESTORS THE FLEXIBILITY TO RECOMBINE THE TRANSACTION'S INTERESTONLY AND PRINCIPALONLY SECURITIES THE FEDERAL NATIONAL MORTGAGE ASSOCIATION ANNOUNCED A 250 MILLION INCREASE TO AN ISSUE OF 30YEAR 65 SECURITIES AND A 190 MILLION INCREASE TO AN ISSUE BACKED BY 7 30YEAR PRINCIPALONLY SECURITIES THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9310050114 931005 SEC CLEARS HYBRID DEBT PLAN WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION HAS APPROVED A PROPOSAL THAT WOULD ALLOW HYBRID DEBT PRODUCTS TO TRADE ON THE NASDAQ STOCK SYSTEM HYBRID DEBT PRODUCTS ARE OFTEN STRUCTURED SO THAT THE INTEREST RATES AND PRINCIPAL PAYMENTS ARE LINKED TO A STOCK INDEX OR SOME OTHER FINANCIAL INSTRUMENT SO FAR NO COMPANY HAS APPLIED TO LIST A HYBRID DEBT PRODUCT ON NASDAQ 9310050113 931005 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY SPET 22 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9310050112 931005 QUARTERLY MUTUAL FUNDS REVIEW MORTGAGE FUNDS TWICE BURNED MAY SEE SOME RELIEF BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL IT'S BEEN A PUNISHING YEAR FOR HOLDERS OF MORTGAGE MUTUAL FUNDS WHICH HAVE LAGGED FAR BEHIND OTHER FIXEDINCOME FUNDS AS THE BOND MARKET HAS RALLIED BUT THE WORST MAY BE OVER BECAUSE THE INTERESTRATE PLUNGE THAT CLOBBERED THESE FUNDS APPEARS TO HAVE BOTTOMED OUT THE FUNDS IN QUESTION HOLD MORTGAGEBACKED BONDS GUARANTEED AGAINST DEFAULT BY THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION OR GINNIE MAE THE GOVERNMENT BACKING IS HIGHLY ALLURING TO INVESTORS SEEKING HIGHER RETURNS THAN THEY CAN GET ON BANK CERTIFICATES OF DEPOSIT INVESTORS HAVE SWITCHED IN DROVES AT THE END OF JULY GINNIE MAE FUNDS HAD 644 BILLION IN ASSETS SECOND IN SIZE AMONG TAXABLE BOND FUNDS BEHIND US TREASURY FUNDS BUT INVESTORS HAVE BEEN BURNED TWICE IN THE PAST YEAR MANY WERE SHOCKED TO REALIZE THAT UNLIKE CDS GINNIE MAE FUNDS CAN SLUMP IN MARKET VALUE WHEN INTEREST RATES CHANGE TRUE THE GOVERNMENT GUARANTEES THAT INTEREST AND PRINCIPAL WILL BE PAID ON GINNIE MAE SECURITIES BUT THERE'S NO SUCH BACKING ON THE DAILY MARKET VALUE OR YIELD OF THE SECURITIES OR THE FUNDS WHEN HOMEOWNERS RACE TO REFINANCE AS MANY DID THIS YEAR A LOT OF OLD HIGHYIELDING MORTGAGES VANISH FORCING THE MANAGERS OF MORTGAGE MUTUAL FUNDS TO REINVEST AT LOWER INTEREST RATES SINCE THE MID1980S GINNIE MAE FUNDS HAVE BEEN OVERPROMISED AND OVERSOLD SAYS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS DID FUND GROUPS PUT AMERICAN FLAGS ON THEIR ADVERTISING TO BOLSTER THE IMPRESSION OF A FEDERAL GOVERNMENT GUARANTEE ABSOLUTELY IRONICALLY THE DAMAGE THIS YEAR CAME DURING A BOND MARKET RUNUP IN WHICH OTHER DEBT SECURITIES WERE RALLYING TO BEAT THE BAND FOR THE FIRST EIGHT MONTHS OF THIS YEAR INVESTORS WOULD HAVE BEEN BETTER OFF IN US TREASURY FUNDS THAN IN GINNIE MAE FUNDS EVEN THOUGH GINNIE MAES TYPICALLY HAVE HIGHER YIELDS THROUGH THE END OF AUGUST GINNIE MAE FUNDS RETURNED AN AVERAGE 609 WHILE GENERAL US TREASURY FUNDS ROSE 1410 COUNTING THE PRICE CHANGE PLUS INCOME ACCORDING TO LIPPER ANALYTICAL SERVICES INC WHEN INTEREST RATES PLUNGED TO HISTORIC LOWS THIS YEAR HOMEOWNERS RUSHED TO REFINANCE THEIR MORTGAGES AT THE LOWER RATES THIS CAUSED MASSIVE PREPAYMENTS OF MORTGAGES AND FUND MANAGERS WHO HELD HIGHRATE MORTGAGE SECURITIES GOT BACK THE PRINCIPAL AND WERE FORCED TO PUT MUCH MORE MONEY THAN THEY EXPECTED BACK TO WORK AT LOWER RATES THE STREET HAS BEEN CAUGHT FLATFOOTED WITH THE AMOUNT OF REFINANCING SAYS LEWIS J ALTFEST PRESIDENT OF LJ ALTFEST & CO A MANHATTAN INVESTMENT ADVISER SOME GINNIE MAE FUNDS ALSO WERE HURT BY USING SOCALLED INTERESTONLY STRIPS OR IOS THESE ARE VOLATILE DERIVATIVE MORTGAGE ISSUES THAT SOME FUNDS USED TO BOOST YIELD WHEN RATES FALL AND HOMEOWNERS REFINANCE IO HOLDERS LOSE OUT ON THOSE INTEREST PAYMENTS WHEN PRICES OF IOS PLUNGED IN RESPONSE THE FUNDS INVESTING IN THEM FELL OFF THE CLIFF SAYS A MICHAEL LIPPER PRESIDENT OF LIPPER ANALYTICAL BUT GINNIE MAE INVESTORS CAN TAKE HEART INTEREST RATES SHOULD REMAIN REASONABLY STEADY IN THE FOURTH QUARTER SAYS KEITH T GUMBINGER AN ANALYST WITH HSH ASSOCIATES A BUTLER NJ FIRM THAT TRACKS MORTGAGE RATES TRUE THE REFINANCING BOOM ISN'T OVER IN DES MOINES IOWA HOMEOWNERS CAN'T GET IN TO TALK TO A LENDER FOR TWO WEEKS BECAUSE OF A CRUSH OF REFINANCINGS SAYS MARTIN SCHAFER MANAGER OF THE PRINCOR GOVERNMENT SECURITIES INCOME FUND A TOPPERFORMING GINNIE MAE FUND THAT RECENTLY SHOWED A FIVEYEAR TOTAL RETURN OF 7498 MAKE NO BONES ABOUT IT THIS IS THE LARGEST AMOUNT OF PREPAYMENTS EVER SEEN SAYS GARITT KONO MANAGER OF THREE DREYFUS GINNIE MAE FUNDS BUT THE TREMENDOUS PREPAYMENT RATE IS ALREADY REFLECTED IN THE PRICES OF THE BONDS MR KONO ADDS WHERE SHOULD INVESTORS GO IF THEY WANT TO PLACE A BET WITH GINNIE MAE FUNDS MORNINGSTAR'S MR PHILLIPS CHOOSES THE FOLLOWING INNOVATIVE FUND MANAGERS VANGUARD GROUP'S PAUL SULLIVAN PETER VAN DYKE AT T ROWE PRICE ASSOCIATES AND RANDALL MERK OF BENHAM GROUP INVESTMENT ADVISER MR ALTFEST PRAISES VANGUARD FIXED INCOME GNMA BECAUSE IT'S A NOLOAD FUND MEANING IT CARRIES NO SALES CHARGE AND HAS LOW MANAGEMENT FEES ROBERT BINGHAM A PARTNER WITH SAN FRANCISCO INVESTMENT ADVISORY FIRM BINGHAM OSBORN & SCARBOROUGH LIKES BENHAM GNMA INCOME FUND FOR ITS LOW MANAGEMENT FEES AND CONSERVATIVE APPROACH BENHAM'S MR MERK SAYS THAT AMONG OTHER THINGS HE LOOKS AT WHERE THE POOLS OF MORTGAGES COME FROM ON THE BET THAT SOME AREAS OF THE COUNTRY ARE FASTER OR SLOWER IN PREPAYMENTS 9310050111 931005 MADE FOR GAWKING THESE SHOES ARE IN FASHION AS ART WINGTIPS RED STILETTO HEELS BOOTS AND ZEBRA PUMPS ALL REEK WITH SYMBOLISM BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A DARKENED ROOM 25 GHOSTLY XRAY IMAGES OF YAWNING EMPTY WORK BOOTS SEEM TO MARCH ACROSS THE FLOOR THEY FACE A TELEVISION MONITOR THE LIPS ON IT CHANTING GIVE THEM WHAT THEY DESERVE EVEN JADED GALLERYGOERS THE SORT WHO WEAR SUNGLASSES INDOORS STOP DEAD IN THEIR TRACKS THE VIDEO ARTWORK CURRENTLY AT THE JOSH BAER GALLERY IN SOHO IS BY LORNA SIMPSON AND IS CALLED GROUP DYNAMIC LEADER CONFRONTS GROUP/GROUP CONFRONTS INDIVIDUAL WHEN ASKED WHAT IT ALL MEANS THE ARTIST REPLIES DIDN'T YOU READ THE TITLE NINETEENTHCENTURY FRANCE HAD IMPRESSIONISM POSTWORLD WAR II AMERICA HAD ABSTRACT EXPRESSIONISM WE JUST NOW HAVE FLORSHEIM IN SANTA CRUZ CALIF GAZA BOWEN CRAFTS HIGH HEELS THAT MOCK TRADITIONAL SEX ROLES SOME ARE MADE OF SCRUB BRUSHES AND SCOURING PADS SURREALIST RUSSIAN ARTIST GENIA CHEF WHOSE WORK IS SHOWN BY THE STUART LEVY GALLERY IN NEW YORK PAINTS PICTURES OF FANTASY SHOES THAT CURL UP THE LEG LIKE SNAKES SOME OF THEM HAVE EYES FEATHERS PROPELLERS AND HEADLIGHTS WHY DOES MR CHEF PAINT SHOES SAYS MR LEVY HE HAS A GOOD WARPED MIND THIS MONTH THE CERAMIC SHOES OF MARGARET J HEWLETT GO ON DISPLAY AT THE NEW ART FORMS EXPOSITION IN CHICAGO SHE DOES ZEBRASTRIPED PUMPS WITH HORNS RISING FROM THE TIPS HIGH HEELS THAT BALANCE ON THE SEVERED LEG OF A DOLL AND SPIKED HEELS WITH REAL SPIKES IN A STATEMENT OF ARTISTIC INTENT THAT ACCOMPANIES THE EXHIBIT MS HEWLETT SAYS OF THE HIGH HEEL PERSISTENCE OF THIS ABSURD YET AESTHETICALLY PLEASING OBJECT IS EVIDENCE OF A DEEP UNDERLYING REPRESSION OF PERSONAL EXPRESSION WHICH CONTINUES SOMETIMES FRIGHTENINGLY POLARIZED IN OUR SOCIETY SOME OF HER SHOES CAN ALSO BE USED AS CANDLEHOLDERS CAROLINE RENNOLDS MILBANK A FASHION HISTORIAN AND COUTURE APPRAISER FOR WILLIAM DOYLE GALLERIES IN NEW YORK MAINTAINS THAT 20THCENTURY FASHION HISTORY IS REALLY THE HISTORY OF THE LEG WITH THE ASCENT OF HEMLINES AND THE DISAPPEARANCE OF FANS HATS AND PARASOLS AS EVERYDAY ACCESSORIES ATTENTION AND ARTISTRY FOCUSED ON THE SHOE SHE SAYS IT IS NO COINCIDENCE THAT BARBIE WAS THE FIRST DOLL TO HAVE REMOVABLE HIGH HEELS PEOPLE ARE OBSESSED WITH SHOES TO THE POINT OF LARCENY LAST MONTH SHOES THAT MARILYN MONROE WORE IN THE SEVENYEAR ITCH WERE AMONG ITEMS STOLEN FROM A NEW YORK WAREHOUSE ONE OF THE ACKNOWLEDGED MASTERPIECES OF THE FLORSHEIM SCHOOL IS GERMAN ARTIST REBECCA HORN'S SCULPTURE PRUSSIAN BLUE BRIDE ELEVEN STEEL RODS SHOOT OUT FROM THE WALL AND 11 HIGHHEELED WHITE PUMPS TWIST IN THE AIR AT THE END OF THEM THEN FROM ABOVE MECHANICAL ARMS DRIP BLUE PAINT OVER THE SHOES MS HORN'S ARTWORLD INJOKE ON THE DRIP PAINTING STYLE OF JACKSON POLLOCK WAS PART OF A RECENT EXHIBITION OF HER SHOE ART AT THE SOLOMON R GUGGENHEIM MUSEUM HERE BOTH THE LOS ANGELES COUNTY MUSEUM OF ART AND THE BROOKLYN MUSEUM HAVE MOUNTED SHOETHEME EXHIBITIONS THIS YEAR THE SOUTHERN CALIFORNIA SHOE DO WAS ON THE DESIGNS OF SALVATORE FERRAGAMO SOCALLED SHOEMAKER OF DREAMS SPONSORED BY FERRAGAMO FIRENZE SPA THE BROOKLYN MUSEUM IS CURRENTLY DOING THE HISTORY OF WOMEN'S SHOES IN AN EXHIBIT CALLED FANCY FEET MARIEJOSEPH BOSSAN CURATOR OF THE POPULAR INTERNATIONAL MUSEUM OF SHOES IN ROMANS FRANCE BELIEVES THAT THE HISTORY OF CIVILIZATION CAN BE READ IN SHOES THE MUSEUM'S HUGE COLLECTION OF 6000 SHOES GIANT SHOE SCULPTURES AND SHOERELATED PAINTINGS HAS TAKEN OVER THE FORMER SISTERS OF THE VISITATION CONVENT THERE SHOES CAN BE A MASTERPIECE MRS BOSSAN SAYS SAYS MS BOWEN THE SHOE ARTIST WHO WORKS IN BRUSHES AND SCOURING PADS SHOES COME WITH A LOT OF EMOTIONAL AND PSYCHOLOGICAL BAGGAGE THAT MAKES THEM SO PERFECT FOR MAKING ART WINGTIPS CONNOTE WEALTH AND RED STILETTO HEELS SEXUAL AVAILABILITY SAYS MS BOWEN AS AN ARTIST YOU CAN EXPLOIT ALL THAT ENCODED INFORMATION SO WHAT DOES IT ALL MEAN SERIOUS SYMBOLIC THINGS PSYCHOSEXUAL THINGS IN HIS 1992 ESSAY POSTMODERNISM OR THE CULTURAL LOGIC OF LATE CAPITALISM MARXIST THEORIST FREDRIC JAMESON TRACED THE HISTORY OF 20THCENTURY SOCIETY THROUGH SHOE ART HE SEES SHOES AS A CLUE OR SYMPTOM FOR SOME VASTER REALITY WHICH REPLACES IT AS ITS ULTIMATE TRUTH THUS VINCENT VAN GOGH'S A PAIR OF BOOTS OF THE HOBNAIL KIND IS A UTOPIAN GESTURE COMMENTING ON THE WHOLE RUDIMENTARY HUMAN WORLD OF AGRICULTURAL MISERY MR JAMESON EXPLAINS SURREALIST ARTIST RENE MAGRITTE'S BARE FEET WITH LACES IN THE PAINTING CALLED LE MODELE ROUGE MR JAMESON SAYS TAKE ON THE CARNAL REALITY OF HUMANITY AND ANDY WARHOL'S SUPERFICIAL AND DECORATIVE PAINTING DIAMOND DUST SOLES FORESHADOWS THE COMMODITY FETISHISM OF A TRANSITION TO LATE CAPITAL IN SHORT SHOES MATTER THE ART WORLD'S SUDDEN FOOT FETISH HAS VARIOUS MEANINGS FOR MUSEUMS ARTISTS AND ART LOVERS FOR MUSEUMS SHOE SHOWS TEND TO BE BOTH CHEAP TO PRODUCE AND TO INSURE THEY ARE POLITICALLY CORRECT SINCE THEY OFTEN FEATURE THE ARTISTRY OF WOMEN AND ADDRESS FEMINIST ISSUES AND THEY ARE BIG WITH SCHOOL GROUPS NONETHELESS THERE'S STILL A GREAT DEAL OF SNOBBERY IN THE ART FIELD ITSELF ABOUT SHOES SAYS PATRICIA MEARS CURATOR OF THE BROOKLYN MUSEUM'S FANCY FEET EXHIBITION SHE THINKS SHOES AREN'T TAKEN AS SERIOUSLY AS THEY SHOULD BE EITHER AS SOCIOLOGICAL MATERIAL OR AS ART TO THE ARTISTS SHOE ART BECAUSE OF THE HAUNTING SENSE OF EMPTINESS AND INTIMACY SHOES CONVEY TO THEM IS A LOGICAL OUTGROWTH OF LAST SPRING'S DOMINANT ART TREND DEATH AND DISMEMBERMENT LOOKING AT PILES OF SHOES THERE'S A SENSE OF GHOSTLINESS SAYS MS MEARS YOU KNOW THERE WAS A HUMAN BEING ATTACHED TO THIS THE ARTIST RALPH BRANCACCIO IS LINING UP 25000 PAIRS OF SHOES FOR A SILENT MARCH NEXT YEAR AT NEW YORK'S CITY HALL FOR THE EVENT AS MUCH POLITICS AS ART MR BRANCACCIO IS COLLECTING SHOES BELONGING TO PEOPLE WITH AIDS THE SHOES ARE TO BE PILED UP AROUND THE BUILDING FOR ART LOVERS THE POPULARITY OF SHOE ART MAY HAVE SOMETHING TO DO WITH A GROWING SYNTHESIS OF TRENDS IN HIGH ART AND LOW DEALERS AND CURATORS SAY THAT PEOPLE WHO INVEST IN BASEBALL CARDS WITH THE SAME ENTHUSIASM THEIR GRANDPARENTS RESERVED FOR CURRIER AND IVES PRINTS DON'T MAKE BIG DISTINCTIONS BETWEEN ART AND CRAFT AND POPULAR CULTURE OBJECTS WANDER TODAY BACK AND FORTH FROM POPULAR AND PROFANE TO SACRED AND AESTHETIC SAYS RICHARD MARTIN CURATOR OF THE METROPOLITAN MUSEUM OF ART'S COSTUME INSTITUTE THESE DAYS ART GROPES IN FASHION'S POCKETS 9310050110 931005 BANKING BANKS PUSH INSURANCE PUBLIC MAY PROFIT BY STEVEN LIPIN AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK OPEN WIDE AND SAY AAAH GOOD YOU'RE ON YOUR WAY TO GETTING A LIFEINSURANCE POLICY FROM CHASE MANHATTAN BANK IN THE LATEST EFFORT BY BANKS TO REPLACE TRADITIONAL BANKING BUSINESS WITH NEW PRODUCTS AND SERVICES CHASE A UNIT OF CHASE MANHATTAN CORP IS PUSHING LIFE INSURANCE IN ITS BRANCHES A SIMPLE SALIVA TEST ADMINISTERED WITH A COTTON SWAB GIVES YOUR FRIENDLY BANKER A QUICK READ ON YOUR HEALTH AND INSURABILITY WITH MUTUAL FUNDS AND ANNUITIES ESTABLISHED IN MANY BANK BRANCHES AROUND THE COUNTRY INSURANCE IS THE LATEST FINANCIAL PRODUCT FOR BANKS TO OFFER INSURANCE IS A NATURAL EXTENSION OF A BANKING RELATIONSHIP SAYS STEPHEN BURNS PRESIDENT OF NORWEST INSURANCE INC A UNIT OF NORWEST CORP OF MINNEAPOLIS ADDS D MARK OLSON CHIEF EXECUTIVE OF INVEST FINANCIAL CORP A TAMPA FLA COMPANY THAT SELLS FINANCIAL PRODUCTS THROUGH BANKS THIS IS ON THE VERGE OF BECOMING THE NEXT MAJOR THRUST FOR BANKS AT ITS BEST THE PUSH BY BANKS INTO INSURANCE COULD PRESENT CONSUMERS WITH A LESS EXPENSIVE PRODUCT INDUSTRY EXPERTS SAY BANKS COULD SHAVE INSURANCE COMMISSIONS BY SELLING THROUGH EXISTING EMPLOYEES IN BRANCHES AT THE VERY LEAST THE MOVE WILL OFFER A CONVENIENT OUTLET FOR BUYING INSURANCE THE AVERAGE JOE ON THE STREET IS NEVER ASKED IF HE WANTS INSURANCE SAYS BARRY GROSMAN PRESIDENT OF AMERICAN MAYFLOWER LIFE INSURANCE CO NOTING THAT INSURANCE AGENTS WOULD RATHER CHASE AFFLUENT CUSTOMERS NINETYFIVE PERCENT OF AGENTS ARE CHASING 5 OF THE MARKET AMERICAN MAYFLOWER A UNIT OF FIRST COLONY CORP SELLS SOME INSURANCE THROUGH BANKS FEDERAL AND STATE LAWS MAKE IT CUMBERSOME FOR BANKS TO UNDERWRITE INSURANCE BUT THEY ARE ALLOWED TO SELL IT EFFORTS TO MARKET INSURANCE HAVE BEEN ANEMIC IN THE PAST CONSUMERS PAY 839 BILLION IN LIFEINSURANCE PREMIUMS EACH YEAR BUT BANKS NOW ACCOUNT FOR ONLY ABOUT 1 OF THE MARKET AT CHASE CUSTOMERS CAN SHOP FOR A VARIETY OF LIFEINSURANCE PRODUCTS AT 370 BRANCHES IN FOUR STATES THE SALIVA TEST IS USED TO SCREEN APPLICANTS FOR A TERM LIFEINSURANCE POLICY OFFERED BY AMERICAN GENERAL LIFE OF NEW YORK A UNIT OF AMERICAN GENERAL CORP WITH THE SALIVA TEST WHICH INDICATES THE PRESENCE OF NICOTINE AND OTHER DRUGS CUSTOMERS CAN APPLY WITHOUT HAVING TO TAKE A PHYSICAL THAT MEANS THEY CAN QUALIFY IN A WEEK OR SO VS THE MONTH IT MIGHT TAKE OTHERWISE CITIBANK WHICH HAS PROBABLY BEEN THE MOST AGGRESSIVE BANK IN ATTEMPTING TO BREAK DOWN REGULATORY PROHIBITIONS ROLLED OUT A PILOT PROGRAM A FEW MONTHS AGO IN 58 BRANCHES IN THE NEW YORK AREA THE CITICORP UNIT IS UNDERWRITING AND MARKETING ITS OWN TERM INSURANCE POLICIES UP TO 250000 THE BANK USES THIRDPARTY CARRIERS INCLUDING PRUDENTIAL INSURANCE CO OF AMERICA FOR LARGER TERM POLICIES AS WELL AS DISABILITY AND VARIABLE LIFE INSURANCE THE STRATEGY IS TO GRADUALLY BUILD UP A BASE OF INSURANCE PRODUCTS NOT UNLIKE THE WAY WE STARTED DOING INVESTMENTS SAYS A CITIBANK SPOKESMAN MUCH LIKE A TRADITIONAL INSURER CITIBANK IS LICENSED TO UNDERWRITE INSURANCE IN 47 STATES THE BANK IS TAKING ADVANTAGE OF ITS GIANT CREDITCARD UNIT WHICH HAS 19 MILLION ACCOUNTS TO CROSSSELL INSURANCE PRODUCTS TO CARD CUSTOMERS THROUGH MAIL AND TELEMARKETING RICHMONDBASED SIGNET BANKING CORP RECENTLY SIGNED A JOINT VENTURE WITH AMERICAN GENERAL LIFE INSURANCE CO A UNIT OF AMERICAN GENERAL CORP TO SELL LIFE INSURANCE SIGNET ALREADY MARKETS PERSONAL AUTOMOBILE AND HOMEOWNERS INSURANCE IN THE WEST NORWEST HAS BEEN ACTIVE FOR YEARS BUT OTHERS SUCH AS WELLS FARGO & CO NOW ARE MULLING HOW TO ENTER THE INSURANCE MARKET WHILE BANKERS ARE DELIGHTED TO BE OFFERING INSURANCE TO CUSTOMERS THE INSURANCE INDUSTRY ITSELF IS SOMEWHAT AMBIVALENT THEY CLEARLY BENEFIT BY HAVING NEW OUTLETS THROUGH WHICH TO PEDDLE THEIR PRODUCTS BUT AGENTS WHO MOSTLY WORK FOR COMMISSIONS WORRY THAT LETTING BANKS IN THE INSURANCE BUSINESS THREATENS THEIR LIVELIHOOD WE CAN COMPETE WITH ANYBODY BUT WE ARE CONCERNED ABOUT UNFAIR COMPETITION SAID PAUL EQUALE SENIOR VICE PRESIDENT OF THE INDEPENDENT INSURANCE AGENTS OF AMERICA A LOBBYING GROUP HE WARNS THAT BANKS MIGHT TAKE UNFAIR ADVANTAGE OF CUSTOMERS SUCH AS FORCING A LOAN APPLICANT TO BUY INSURANCE AS A CONDITION OF GETTING A LOAN AND HE ARGUES THAT LETTING BANKS SELL INSURANCE WON'T NECESSARILY DRIVE DOWN PRICES BANKS ARE MAKING SOME HEADWAY ON THE REGULATORY FRONT ABOUT HALF THE STATES PERMIT STATECHARTERED BANKS TO SELL MOST INSURANCE PRODUCTS AND RECENTLY EUGENE LUDWIG US COMPTROLLER OF THE CURRENCY ENDORSED THE NOTION THAT BANKS WOULD BE STRONGER AND SAFER IF ALLOWED TO SELL INSURANCE AND OTHER FINANCIAL PRODUCTS BUT NOT ALL THE HURDLES FACING BANKS IN THEIR EFFORTS TO SELL INSURANCE ARE REGULATORY A RECENT VISIT TO A CHASE BRANCH TURNED UP A CUSTOMERSERVICE REPRESENTATIVE WHO COULDN'T QUOTE RATES FOR AN INSURANCE POLICY SHE PROMISED TO GET THE RATES FROM THE INSURANCE PROVIDER THE NEXT DAY FOUR DAYS LATER SHE CALLED WITH A QUOTE 9310050109 931005 GM PRODUCTION PROBLEMS HURT 94 MODEL SALES ONGOING SNAGS COMPLICATE UAW NEGOTIATIONS MAY LAST TO NOVEMBER BY OSCAR SURIS AND NEAL TEMPLIN STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP BRACING FOR TOUGH LABOR NEGOTIATIONS IS STILL WRESTLING WITH PRODUCTION GLITCHES THAT ARE HOBBLING THE AUTO MAKER'S IMPORTANT 1994 MODEL LAUNCH AND COULD LAST INTO NEXT MONTH GM'S ROUGH NEWMODEL LAUNCH COMES AT A PARTICULARLY AWKWARD TIME GM'S BOARD YESTERDAY DEBATED WHAT RESPONSE THE COMPANY SHOULD MAKE TO DEMANDS FROM THE UNITED AUTO WORKERS UNION THAT GM ACCEPT THE SAME TERMS FOR A NEW THREEYEAR NATIONAL CONTRACT THAT FORD MOTOR CO AND CHRYSLER CORP HAVE TAKEN GM DIRECTORS ARE CONCERNED THE PACT WOULD LOCK IN GM'S UNCOMPETITIVE LABOR COSTS GM SAID IN A STATEMENT THAT THE COMPANY'S INDEPENDENT DIRECTORS AND PRESIDENT JOHN F SMITH JR'S MANAGEMENT ARE OF A SINGLE MIND ON THE UPCOMING NEGOTIATIONS AND THE BOARD WILL STAY CLOSE TO THE SITUATION AS IT DEVELOPS A COMPANY OFFICIAL DECLINED TO ELABORATE EXCEPT TO INDICATE THAT THE BOARD RECEIVED AN UPDATE ON THE LABOR SITUATION WITHOUT MAKING ANY FIRM DECISIONS UAW OFFICIALS REITERATED THEIR OPPOSITION TO BREAKING THE BIG THREE LABOR PATTERN FOR GM BUT INDICATED THEY WILL DISCUSS GIVING GM SOME LEEWAY TO CUT COSTS WITHIN THE PATTERN BUT IN PART BECAUSE OF THE LACK OF NEW MODELS IN STOCK THE COMPANY IS ILLEQUIPPED TO WEATHER ANY LABOR TROUBLE THAT MIGHT RESULT FROM AN ATTEMPT TO BUCK THE UAW'S INSISTENCE ON FOLLOWING THE FORDCHRYSLER PATTERN AS REPORTED PRODUCTION PROBLEMS THIS SUMMER HAVE CAUSED GM TO FALL MORE THAN 70000 CARS AND TRUCKS SHORT OF ITS ORIGINAL US PRODUCTION GOALS FOR THE THIRD QUARTER GM HAS BEEN PLANNING A MAJOR SALES PUSH THIS FALL PARTICULARLY IN CALIFORNIA WITH SPECIALLY EQUIPPED AND SPECIALLY PRICED MODELS BUT NOW GM DEALERS SAY THEY ARE LOSING SALES BECAUSE THEY CAN'T GET ENOUGH 1994 MODELS WHICH BEGAN ARRIVING LATE LAST MONTH GM OFFICIALS CONCEDED YESTERDAY IT MAY TAKE UNTIL NEXT MONTH TO SORT OUT ALL THE PROBLEMS AND CRANK UP FACTORIES TO FULL SPEED IN THE MEANTIME WE ARE NOT GOING TO HAVE A LOT OF CARS FOR PEOPLE TO LOOK AT SAID KEN PRESNELL A SALES MANAGER AT BROWN PONTIAC IN TOLEDO OHIO IN RECESSIONBATTERED CALIFORNIA SANTA MARIA OLDSMOBILE DEALER BARRY STEWART ADDED THE CARS HAVE JUST TRICKLED IN WE'D BE SHORT CARS IF WE HAD DEMAND THE PRODUCTION GLITCHES RANGE FROM FAULTY PARTS FROM OUTSIDE SUPPLIERS TO SLOWERTHANEXPECTED PLANT RETOOLINGS AND THEY HAVE AFFECTED MOST OF THE AUTO MAKER'S 1994 VEHICLE LINEUP INCLUDING HIGHVOLUME SELLERS SUCH AS THE CHEVROLET CAVALIER AND THE PONTIAC GRAND AM DEALERS UNION OFFICIALS AND COMPANY OFFICIALS SAY IN ARLINGTON TEXAS ASHTRAYS AND GLOVECOMPARTMENT DOORS PROVIDED BY AN OUTSIDE SUPPLIER STALLED PRODUCTION OF 1994 BUICK ROADMASTERS FOR NEARLY TWO MONTHS PROMPTING GM TO CALL IN ANOTHER SUPPLIER TO ADDRESS THE PROBLEM WE WERE ASKED BY GM TO COME IN AND HELP THEM WHICH WE ARE IN THE PROCESS OF DOING SAID A SPOKESMAN FOR AEROEQUIP NORTH AMERICAN AUTOMOTIVE OPERATIONS A UNIT OF TRINOVA CORP BASED IN MAUMEE OHIO THE PROBLEMS AT ARLINGTON WERE AMONG SEVERAL EXAMPLES REPORTED YESTERDAY BY THE TRADE PUBLICATION AUTOMOTIVE NEWS AT THE AUTO MAKER'S ENGINE PLANT IN TONAWANDA NY A NEW ENGINE TESTING PROCESS FOR 22 LITER FOURCYLINDER ENGINES HAS BEEN SITTING IDLE AWAITING PARTS AND FURTHER INSPECTIONS FROM GM ENGINEERS LIKEWISE PRODUCTION LINES RESERVED AT THE PLANT FOR A NEW 31 LITER V6 ENGINE ARE STILL UNDERGOING RETOOLING MODELS AFFECTED BY THE DELAYS SPAN EACH OF THE AUTO MAKER'S CAR AND TRUCK DIVISIONS WE ARE NOW TAKING THE STEPS TO MEET MARKET DEMAND SAID A GM SPOKESWOMAN WHO ADDED THE ENGINE PLANT IS EXPECTED TO BE OPERATING AT CAPACITY BY THE MIDDLE OF NEXT MONTH IN SOME INSTANCES THE HOLDUPS HAVE BEEN CAUSED BY GM'S OWN HEIGHTENED CONCERNS ABOUT QUALITY HOPING TO ERASE A REPUTATION FOR SHODDY WORKMANSHIP GM IS NOW HALTING PRODUCTION AND HOLDING CARS AT THE FACTORIES RATHER THAN SHIPPING DEFECTIVE VEHICLES COMPANY AND UAW OFFICIALS SAY IN A STATEMENT GM DEFENDED THE QUALITY OF ITS PRODUCTS ADDING WHILE OUR VOLUME IS BELOW OUR INTENTIONS AND REQUIREMENTS THE QUALITY OF THE VEHICLES WE ARE PRODUCING IS NOT GM'S ABILITY TO RESPOND TO THE SNAFUS MAY BE HAMPERED BY ITS OWN FRAGILE RELATIONS WITH OUTSIDE SUPPLIERS WHO CAN PROVIDE CRITICAL ENGINEERING SUPPORT DURING MODEL CHANGEOVERS INDUSTRY INSIDERS SAID SUPPLIERS REMAIN WARY OF GM'S PURCHASING DEPARTMENT WHICH UNDER THE DIRECTION OF ITS FORMER CHIEF J IGNACIO LOPEZ DE ARRIORTUA ENFORCED A TOUGH COSTCUTTING MANDATE BY BREAKING AND REBIDDING CONTRACTS AND INSISTING UPON DOUBLEDIGIT PRICE CUTS SUPPLIERS WHO IN THE PAST MIGHT HAVE SHARED TECHNOLOGY AND ENGINEERING EXPERTISE WITH GM NOW THINK TWICE ABOUT THE PROPOSITION FEARING THE AUTO MAKER WILL TAKE THAT EXPERTISE AND SHARE IT WITH A CHEAPER SUPPLIER SUPPLIERCOMPANY OFFICIALS SAID GM HOWEVER HAS CONTINED TO DEFEND THE PURCHASING DEPARTMENT AND ITS SUPPLIERS OUR SUPPLIERS ALL HAVE GOOD TRACK RECORDS IN THE INDUSTRY GM SAID IN A STATEMENT THEY ARE NOT PART OF THE PROBLEM THEY ARE PART OF THE SOLUTION 9310050108 931005 FINANCING BUSINESS ICH CORP ICH CORP LOUISVILLE KY SAID IT BEGAN AN EXCHANGE OFFER FOR ITS TWO ISSUES OUTSTANDING OF SENIOR SUBORDINATED DEBT HOLDERS OF THE COMPANY'S 165 SENIOR SUBORDINATED DEBENTURES DUE IN 1994 AND 1125 SENIOR SUBORDINATED NOTES DUE IN 1996 HAVE THE OPTION TO EXCHANGE THEM FOR NEW 1125 SENIOR SUBORDINATED NOTES DUE DEC 1 2003 NONCALLABLE UNTIL DEC 1 1996 THE INSURANCE HOLDING COMPANY SAID THAT ON OR AFTER JAN 2 1994 IT INTENDS TO REDEEM AT 100 OF THE PRINCIPAL AMOUNT ALL 165 DEBENTURES NOT EXCHANGED UNDER THE OFFER AS OF SEPT 30 THE PRINCIPAL BALANCES OF THE 165 DEBENTURES AND 1125 NOTES TOTALED 499 MILLION AND 3532 MILLION RESPECTIVELY 9310050107 931005 TECHNOLOGY U S WEST COMMUNICATIONS AND 3DO PLAN A TRIAL OF JOINT INTERACTIVE TV SYSTEM BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL REDWOOD CITY CALIF 3DO CO IS TEAMING UP WITH A UNIT OF U S WEST FOR AN INTERACTIVE TELEVISION TRIAL IN OMAHA NEB A BOOST FOR 3DO'S EFFORT TO GET ITS MULTIMEDIA TECHNOLOGY ACCEPTED AS A GATEWAY TO FUTURE INFORMATION HIGHWAYS THE PARTNERSHIP INCREASES THE CHANCES THAT 3DO A STARTUP COMPANY THAT JUST WENT PUBLIC LAST SPRING CAN STAY IN A CLOSELY WATCHED RACE TO BUILD A NEW GENERATION OF INTERACTIVE TV SETTOP DECODERS ITS MAIN COMPETITORS ARE SILICON GRAPHICS INC WHOSE TECHNOLOGY HAS BEEN PICKED BY CABLE GIANT TIME WARNER INC FOR A TRIAL IN ORLANDO FLA AND A PARTNERSHIP OF INTEL CORP MICROSOFT CORP AND GENERAL INSTRUMENT CORP UNTIL NOW 3DO HAS BEEN FOCUSING ON HOME ENTERTAINMENT DEVICES THAT PLAY COMPACT DISKS AND REPRESENT A BIG STEP UP IN POWER AND PRICE OVER CONVENTIONAL VIDEO GAME PLAYERS THE FIRST SOCALLED INTERACTIVE MULTIPLAYER USING 3DO'S TECHNOLOGY THE 695 REAL SYSTEM FROM PANASONIC ARRIVED IN RETAIL STORES ON FRIDAY BUT 3DO CHIEF EXECUTIVE TRIP HAWKINS HAS MADE NO SECRET OF PLANS TO SET NEW STANDARDS IN DIGITAL VIDEO NETWORKS AS WELL AS STANDALONE GAME SYSTEMS AMERICAN TELEPHONE & TELEGRAPH CO A VITAL 3DO INVESTOR IS EXPECTED TO SHIP A GAMEPLAYING DEVICE NEXT YEAR THAT INCLUDES A JACK FOR HOOKING INTO TELEPHONE LINES AS WELL AS PLAYING CDS HUGH MARTIN 3DO'S CHIEF OPERATING OFFICER PREDICTED THAT THE OMAHA TRIAL WILL INCLUDE LARGE CENTRAL REPOSITORIES OF 3DO VIDEO GAMES AND OTHER PROGRAMMING THAT CONSUMERS WILL BE ABLE TO CALL UP FROM HOME OVER U S WEST'S PROPOSED NETWORK OF FIBEROPTIC AND COPPER PHONE LINES I THINK THIS IS GOING TO MEAN MORE FOR 3DO THAN ALL THOSE BRAINDEAD VIDEO GAMES SAID DENISE CARUSO EDITOR OF DIGITAL MEDIA A SAN FRANCISCO NEWSLETTER BUT MS CARUSO AND OTHER ANALYSTS SAY IT IS FAR TOO SOON TO PICK WINNERS IN THE RACE TO SET STANDARDS FOR NEW DIGITAL TV SETTOP BOXES U S WEST HAS STILL NOT SELECTED THE COMPANY THAT WILL ACTUALLY MANUFACTURE A DEVICE USING 3DO'S TECHNOLOGY PRICE IS ANOTHER MAJOR ISSUE TODAY'S SIMPLE SETTOP DECODERS COST CABLE TV COMPANIES 50 EACH OR LESS MR MARTIN SAID THAT NEW DEVICES BASED ON 3DO'S TECHNOLOGY ARE LIKELY TO COST ABOUT THE SAME AS ITS GAMEPLAYERS OR MORE THAN 600 UNTIL MANUFACTURING VOLUMES INCREASE IN TWO YEARS OR SO BUT DEVICES FROM SILICON GRAPHICS AND THE MICROSOFTINTEL PARTNERSHIP SHOULD COST EVEN MORE MR MARTIN PREDICTED THE DIGITAL SUPERHIGHWAY IS COMING AND EVERYONE IS EXCITED ABOUT IT HE SAID BUT WE THINK IT WILL TAKE A LITTLE WHILE LONGER THAN MOST PEOPLE ARE THINKING TO DELIVER THOSE SERVICES 9310050106 931005 FINANCING BUSINESS TORONTODOMINION BANK TORONTODOMINION BANK SAID IT PLANS TO SELL A NEW ISSUE OF SEVEN MILLION NONCUMULATIVE REDEEMABLE CLASS A FIRST PREFERRED SHARES SERIES G AT 25 EACH OR A TOTAL OF 175 MILLION THE BANK SAID THE ISSUE WILL HAVE A DIVIDEND RATE OF 540 HOLDERS MAY CONVERT THE PREFERRED SHARES TO COMMON STOCK BEGINNING IN 2004 AN UNDERWRITING GROUP COLED BY SCOTIAMCLEOD INC MINION SECURITIES INC AGREED TO PURCHASE THE ISSUE WHICH WILL BE REDEEMABLE AT PAR BEGINNING JULY 31 2003 THE BANK SAID IT WILL USE THE PROCEEDS OF THE ISSUE TO STRENGTHEN ITS BASE OF PRIMARY TIER CAPITAL 9310050105 931005 POLITICS & POLICY CLINTON FACES LABOR OPPONENTS OF NAFTA PROMISES PACT WON'T HARM JOBS IN US BY JEFFREY H BIRNBAUM AND KEVIN G SALWEN STAFF REPORTERS OF THE WALL STREET JOURNAL SAN FRANCISCO PRESIDENT CLINTON STEPPED INTO THE LION'S DEN OF OPPOSITION TO HIS FREETRADE PACT WITH MEXICO AND CANADA THE ANNUAL CONVENTION OF THE AFLCIO AND EMERGED WITH A RENEWED RESPECT FROM UNION LEADERS MR CLINTON TOLD ORGANIZED LABOR THAT HE DIDN'T EXPECT TO CHANGE THEIR MINDS ABOUT THEIR OPPOSITION TO THE NORTH AMERICAN FREE TRADE AGREEMENT BUT HE BEGGED THEIR INDULGENCE TO LET HIM MAKE HIS CASE THAT THE PACT WOULD BENEFIT WORKERS RATHER THAN DO HARM IN THE END UNION OFFICIALS FOLLOWED THE TONE SET BY AFLCIO PRESIDENT LANE KIRKLAND WHO DECLARED MR CLINTON A PROVEN FRIEND OF LABOR FOR MR CLINTON'S ASSUMED REELECTION BID IN 1996 MR KIRKLAND ASSERTED THE UNION MOVEMENT WILL BE THERE WITH HIM FIGHTING SHOULDERTOSHOULDER FOR A BETTER TOMORROW AND HE URGED LABOR OFFICIALS TO HOLD THEIR FIRE THERE WILL BE AMPLE TIME LATER IN THIS CONVENTION FOR A FULL AIRING OF NAFTA HE SAID REFERRING TO A RALLY TOMORROW OPPOSING THE PACT THE SPEECH WAS A RISK FOR PRESIDENT CLINTON THE AFLCIO HAS MADE DEFEAT OF NAFTA ITS TOP LEGISLATIVE PRIORITY FEDERATION OFFICIALS SAY THEY HAVE AMASSED 4 MILLION TO LOBBY AGAINST IT AN AMOUNT EQUAL TO THEIR FUND TO LOBBY IN FAVOR OF HEALTHCARE REFORM IT WAS NO SURPRISE THEN WHEN THE ROOM GREW SILENT AS MR CLINTON MADE HIS ARGUMENTS FOR APPROVING THE TREATY MR CLINTON ARGUED THAT THE TRADE AGREEMENT WOULD RESULT IN MORE AMERICAN JOBS BY OPENING EXPORT MARKETS ESPECIALLY FOR USMADE CARS IN MEXICO HE ALSO WARNED THAT IF NAFTA ISN'T APPROVED OTHER COUNTRIES SUCH AS GERMANY MIGHT STEP IN AND CREATE A LOWTARIFF ZONE WITH MEXICO THAT COULD HURT AMERICAN TRADE OVER THE LONG RUN I WOULD NEVER DO ANYTHING KNOWINGLY THAT WOULD COST AMERICAN JOBS MR CLINTON INSISTED THAT'S NOT THE BUSINESS I'M IN MR CLINTON TRIED TO SELL BOTH NAFTA AND HEALTHCARE OVERHAUL USING HIS NEWEST THEME PERSONAL SECURITY HE SAID HE BELIEVED OPPOSITION TO THE TRADE PACT WAS A SYMBOL OF OTHER GRIEVANCES WORKING AMERICANS HAVE IN THE FACE OF THE UNCERTAINTIES IN A RAPIDLY CHANGING ECONOMY BUT DESPITE CARPING IN THE UNION RANKS THE LABOR LEADERS ASSEMBLED HERE TRIED TO MUTE THEIR ANGER OVER NAFTA AND EMPHASIZE ISSUES ON WHICH THEY AND MR CLINTON AGREE PARTICULARLY THE PRESIDENT'S OWN TOP PRIORITY OVERHAULING THE HEALTHCARE SYSTEM WHILE THE PRESIDENT DIDN'T WIN ANY NAFTA VOTES THE SPEECH EARNED RESPECT I CAN APPRECIATE HIS POSITION SAID ARTHUR COIA PRESIDENT OF THE LABORERS INTERNATIONAL UNION BUT I'D STILL LIKE TO HAVE A BETTER PLAN UNITED STEELWORKERS HEAD LYNN WILLIAMS CHEERED MR CLINTON'S SPEECH AS GREAT ADDING THAT IN EVERYTHING ELSE BUT NAFTA WE ARE IN STRONG SUPPORT AS MR CLINTON WORKED THE ROPE LINE GREETING THE DELEGATES AFTER HIS SPEECH DEAN SOOTER OF THE CARPENTERS UNION SUMMED UP THE VIEW OF THE LABOR MOVEMENT I DON'T THINK IT CONVINCED ANYONE IN THIS ROOM THAT NAFTA WILL BE GOOD FOR THIS COUNTRY HE SAID 9310050104 931005 JURASSIC PARK' SETS RECORD FOR BOX OFFICES GLOBALLY UNIVERSAL CITY CALIF MCA INC'S UNIVERSAL PICTURES SAID ITS MOTION PICTURE JURASSIC PARK BROKE THE RECORD FOR WORLDWIDE BOXOFFICE RECEIPTS HELD BY ET THE EXTRATERRESTRIAL BECOMING THE HIGHESTGROSSING MOVIE OF ALL TIME IN THEATERS JURASSIC PARK WHICH OPENED LAST JUNE 11 IN THE US HAD AS OF LAST SUNDAY SOLD 704 MILLION IN TICKETS INCLUDING 3257 MILLION DOMESTICALLY AND 379 MILLION OVERSEAS ET WHICH CAME OUT IN 1982 GROSSED MORE IN THE US AND CANADA EVEN WITHOUT ITS RERELEASE IN 1985 BUT ITS WORLDWIDE GROSS WAS 701 MILLION INTERNATIONAL MARKETS HAVE EXPLODED IN THE LAST FEW YEARS AND ALONG WITH HIGHER TICKET PRICES THIS CARRIED JURASSIC PARK OVER THE TOP THE FILM ABOUT GENETICALLY RECONSTRUCTED DINOSAURS BROKE BOXOFFICE RECORDS IN JAPAN AND THE UNITED KINGDOM AND ITS OVERSEAS RUN IS FAR FROM OVER IT STILL HASN'T BEEN RELEASED IN SUCH MAJOR COUNTRIES AS FRANCE AND SPAIN BOTH FILMS WERE DIRECTED BY STEVEN SPIELBERG MCA WHICH ALSO RELEASED ET IS A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO 9310050103 931005 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED OCTOBER 1 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 CONNECTICUT DEVELOPMENT AUTHORITY WILL REDEEM ON NOV 1 1993 ITS 65 POLLUTION CONTROL REVENUE BONDS SERIES 1977 DUE JUNE 1 2007 SHAWMUT BANK CONNECTICUT HARTFORD CONN IS TRUSTEE CONSTANTINE MICH WILL REDEEM ON NOV 1 1993 ITS INDUSTRIAL REVENUE BONDS FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE EAST BATON ROUGE PARISH LA WILL REDEEM ON NOV 1 1993 ITS 590 POLLUTION CONTROL INDUSTRIAL REVENUE BONDS SERIES A DUE MAY 1 1999 MORGAN GUARANTY TRUST CO NEW YORK IS TRUSTEE GREENEVILLE INDUSTRIAL DEVELOPMENT BOARD TENN WILL REDEEM ON NOV 1 1993 ITS 9 3/4 INDUSTRIAL DEVELOPMENT REVENUE BONDS SERIES 1983 DUE MAY 1 2013 MERCANTILE BANK OF ST LOUIS IS TRUSTEE ILLINOIS DEVELOPMENT FINANCE AUTHORITY WILL REDEEM ON NOV 1 1993 ITS 9 5/8 SOLID WASTE DISPOSAL REVENUE BONDS SERIES 1982 DUE NOV 1 2012 CONTINENTAL BANK NA IS TRUSTEE ILLINOIS INDUSTRIAL POLLUTION CONTROL FINANCING AUTHORITY WILL REDEEM ON NOV 1 1993 750000 PRINCIPAL AMOUNT OF ITS 75 POLLUTION CONTROL REVENUE BONDS SERIES 1975 DUE NOV 1 2000 FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE INDIANAPOLIS IND WILL REDEEM ON NOV 1 1993 ITS 595 ECONOMIC DEVELOPMENT REVENUE BONDS SERIES 1977 DUE NOV 1 2007 BANK ONE INDIANAPOLIS IS TRUSTEE JOLIET ILL WILL REDEEM ON NOV 1 1993 750000 OF ITS RESIDENTIAL MORTGAGE REVENUE BONDS SERIES 1979 DUE MAY 1 19941999 AND MAY 1 2009 CONTINENTAL BANK CHICAGO AND FIRST BANK MILWAUKEE ARE TRUSTEES MONTGOMERY COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY PA WILL REDEEM ON NOV 1 1993 ITS 105 INDUSTRIAL DEVELOPMENT REVENUE BONDS SERIES 1983 DUE MARCH 1 2003 MELLON BANK PHILADELPHIA IS TRUSTEE NORTH CAROLINA CENTRAL UNIVERSITY WILL REDEEM ON NOV 1 1993 ITS STUDENT UNION REVENUE BONDS 1967 SERIES A AND B ONTARIO CAN WILL REDEEM ON NOV 3 1993 ITS 5 5/8 DEBENTURES SERIES DX DUE APRIL 15 1997 BANK OF MONTREAL TRUST CO NEW YORK IS FISCAL AGENT OSLO NORWAY WILL REDEEM ON NOV 1 1993 ITS 8 3/4 BONDS DUE NOV 1 1997 BANKERS TRUST CO NEW YORK IS FISCAL AGENT PAINESVILLE OHIO WILL REDEEM ON NOV 1 1993 45000 PRINCIPAL AMOUNT OF ITS 9 1/2 INDUSTRIAL DEVELOPMENT REVENUE BONDS DUE NOV 1 1999 SOCIETY NATIONAL BANK CLEVELAND IS TRUSTEE PASADENA CALIF WILL REDEEM ON NOV 1 1993 300000 PRINCIPAL AMOUNT OF ITS 1987 CERTIFICATES OF PARTICIPATION BANK OF NEW YORK IS TRUSTEE PERTH AMBOY PARKING AUTHORITY NJ WILL REDEEM ON NOV 1 1993 70000 PRINCIPAL AMOUNT OF ITS PARKING REVENUE BONDS SERIES 1972 DUE NOV 1 2002 CONSTELLATION BANK ELIZABETH NJ IS PAYING AGENT RIVIERA BEACH FLA WILL REDEEM ON NOV 1 1993 260000 PRINCIPAL AMOUNT OF ITS WATER AND SEWER REVENUE BONDS SERIES 1963 DUE NOV 1 2002 BARNETT BANKS TRUST CO NEW YORK IS SUCCESSOR ESCROW AGENT SALT LAKE CITY UTAH WILL REDEEM ON NOV 1 1993 THE FOLLOWING AIRPORT REVENUE BONDS SERIES 1978 DUE NOV 1 OF THE LISTED YEARS 61 DUE 199498 62 DUE 19992001 AND 5 DUE 200203 ZIONS FIRST NATIONAL BANK SALT LAKE CITY IS PAYING AGENT SPRINGFIELD ILL WILL REDEEM ON NOV 1 1993 THE FOLLOWING RESIDENTIAL MORTGAGE REVENUE BONDS SERIES 1979 665 DUE 1994 68 DUE 1995 69 DUE 1996 7 DUE 1997 705 DUE 1998 71 DUE 1999 AND 73 DUE 2009 CONTINENTAL BANK CHICAGO AND FIRST NATIONAL BANK SPRINGFIELD ARE PAYING AGENTS SWEDEN WILL REDEEM ON NOV 1 1993 ITS 8 1/8 BONDS DUE 1996 BANKERS TRUST CO NEW YORK IS FISCAL AGENT WEBER COUNTY UTAH WILL REDEEM ON NOV 1 1993 100000 PRINCIPAL AMOUNT OF ITS INDUSTRIAL DEVELOPMENT BONDS DUE NOV 1 1998 SOCIETY NATIONAL BANK CLEVELAND IS TRUSTEE FEDERAL NATIONAL MORTGAGE ASSOCIATION WILL REDEEM THE FOLLOWING MEDIUMTERM NOTE ISSUES ON THE DATES GIVEN 678 DUE NOV 1 1995 ON NOV 1 1993 505 DUE NOV 9 1995 ON NOV 9 1993 AND 625 DUE NOV 13 1997 ON NOV 15 1993 TEXASNEW MEXICO POWER CO A UNIT OF TNP ENTERPRISES INC WILL REDEEM ON NOV 1 1993 THE FOLLOWING FIRST MORTGAGE BONDS 495 SERIES H DUE AUG 1 1995 6075 SERIES I DUE MAY 1 1996 9 SERIES J DUE OCT 1 1999 AND 85 SERIES K DUE MAY 1 2001 CONTINENTAL BANK CHICAGO IS TRUSTEE 9310050102 931005 WHO'S NEWS ELECTROSOURCE INC ELECTROSOURCE INC AUSTIN TEXAS NORMAN HACKERMAN THE 81YEAROLD FORMER PRESIDENT OF BOTH THE UNIVERSITY OF TEXAS AND RICE UNIVERSITY WAS ELECTED TO THE BOARD OF THIS MAKER OF COMMERCIAL LEAD ACID BATTERIES HE SUCCEEDS DONALD S THOMAS 72 WHO RETIRED DUE TO ILL HEALTH MR HACKERMAN PREVIOUSLY SERVED ON THE BOARD FROM 1988 UNTIL 1992 TODD TEMPLETON A 40YEAROLD LOCAL PRIVATE INVESTOR WAS ALSO NAMED TO THE BOARD TO SUCCEED ROBERT TREMBATH 46 WHO RESIGNED TO PURSUE OTHER INTERESTS ADDITIONALLY FRANK BUTLER 51 FOUNDER AND SOLE OWNER OF CUSTOM MASONRY CORP OF SAN ANTONIO WAS ELECTED A DIRECTOR INCREASING THE BOARD'S SIZE TO EIGHT 9310050101 931005 BUSINESS BRIEF EG&G WINS CONTRACT TO STAY AS MANAGER OF KENNEDY CENTER WELLESLEY MASS EG&G INC WON A CONTRACT VALUED AT ABOUT 17 BILLION OVER 10 YEARS TO CONTINUE MANAGING OPERATIONS AT FLORIDA'S KENNEDY SPACE FLIGHT CENTER EG&G WHICH HAS BEEN HANDLING THE SPACE CENTER'S OPERATIONS JOB SINCE 1983 WAS SELECTED BY THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AFTER SUCCESSFULLY FIGHTING A DECISION LAST NOVEMBER TO AWARD THE CONTRACT TO LOCKHEED CORP THE SPACE AGENCY REOPENED THE BIDDING IN FEBRUARY AFTER LAST YEAR'S LOSING BIDDERS WHICH INCLUDED EG&G WESTINGHOUSE ELECTRIC CORP AND BAMSI INC CLAIMED LOCKHEED UNFAIRLY CONSOLIDATED ITS BID WITH A SEPARATE CONTRACT FOR PREPARING SPACE SHUTTLES FOR LAUNCHING LOCKHEED SAID AT THE TIME THAT SOME SHARED RESOURCES WERE INVOLVED IN THE BID BUT SAID CONSOLIDATION WAS THE WRONG TERM WHILE NASA REVIEWED NEW BIDS FOR MUCH OF THIS YEAR IT EXTENDED THE SERVICE WORK TO EG&G WHICH MANAGES FACILITIES AND ALSO MAKES TECHNICAL INSTRUMENTS NASA'S SELECTION IS A BIG VICTORY FOR EG&G WHICH LAST NOVEMBER SAID LOSING THE CONTRACT WOULD RESULT IN LOST ANNUAL EARNINGS OF BETWEEN 13 CENTS AND 15 CENTS A SHARE IT ESTIMATED THAT THE CONTRACT BROUGHT IT 200 MILLION IN ANNUAL REVENUE WHICH REPRESENTS ABOUT 7 OF EG&G'S TOTAL BUT THE NEW CONTRACT IS TOUGHER ON EG&G THAN THE PREVIOUS ONE WE'RE VERY HAPPY ABOUT WINNING BUT WE'RE ALSO EXPECTED TO PROVIDE MORE SERVICE FOR LESS MONEY SAID DEBBIE LORENZ AN EG&G SPOKESWOMAN THE EARNINGS IMPACT WILL NOW BE ABOUT SEVEN CENTS A YEAR SHE ADDED EG&G'S WIN IS A SETBACK FOR LOCKHEED CALABASAS CALIF WHICH IS TRYING TO DIVERSIFY INTO THE MANAGEMENT FIELD WE'RE OBVIOUSLY DISAPPOINTED SAID JOHN WILLIAMS A SPOKESMAN FOR THE LOCKHEED SPACE OPERATIONS UNIT WHO ADDED THAT LOCKHEED ISN'T RULING OUT A PROTEST 9310050100 931005 S&P 500STOCK INDEX CHANGE NEW YORK MARRIOTT INTERNATIONAL WILL REPLACE MARRIOTT CORP IN THE STANDARD & POOR'S 500STOCK INDEX IN A NEWS RELEASE S&P SAID THE CHANGE WILL OCCUR ON COMPLETION OF MARRIOTT CORP'S SPINOFF OF MARRIOTT INTERNATIONAL MARRIOTT INTERNATIONAL WILL MANAGE HOTELS FOOD SERVICE OPERATIONS AND RETIREMENT CENTERS S&P SAID THE EXDATE FOR THE SPINOFF IS OCT 11 MARRIOTT CORP WILL BE REMOVED FROM THE INDEX AFTER THE CLOSE OF TRADING ON FRIDAY 9310050099 931005 DIVIDEND NEWS BERRY PETROLEUM CO BERRY PETROLEUM CO TAFT CALIF SLASHED THE QUARTERLY DIVIDEND ON ITS COMMON STOCK TO 10 CENTS A SHARE FROM 15 CENTS BEGINNING WITH THE DIVIDEND PAYABLE DEC 29 THE RECORD DATE HASN'T BEEN SET YET BERRY ALSO SAID IT WILL TAKE A 26 MILLION PRETAX WRITEDOWN AGAINST THIRDQUARTER EARNINGS ON PROPERTIES IN TWO EAST TEXAS GAS FIELDS WHERE TESTING HAS PROVED DISAPPOINTING IN THE YEAREARLIER THIRD QUARTER THE COMPANY HAD NET INCOME OF 35 MILLION OR 16 CENTS A SHARE ON REVENUE OF 322 MILLION BERRY SAID ITS BOARD CUT THE DIVIDEND BECAUSE OF LOW CRUDE OIL PRICES AND HIGHER OPERATING COSTS THAT HAVE REDUCED THE COMPANY'S EARNINGS IT ADDED THAT THE OUTLOOK FOR HEAVY CRUDE OIL PRICES IS NOT OPTIMISTIC 9310050098 931005 MARKETING & MEDIA NEWS CORP RECEIVES OPTIONS TO PURCHASE BOSTON TV STATION BOSTON NEWS CORP'S FOX TELEVISION UNIT HAS ACQUIRED OPTIONS TO PURCHASE ITS AFFILIATE HERE AND SAYS THE BOSTON HERALD NEWSPAPER WOULD BE SOLD TO COMPLY WITH FEDERAL LAW IF THE OPTION IS EXERCISED UNDER AN AGREEMENT REACHED LATE LAST WEEK FOX RECEIVED RIGHTS TO BUY BOSTON CELTICS BROADCASTING LP OWNER OF WFXT OVER THE NEXT SEVERAL YEARS FOR AT LEAST 50 MILLION IN CASH AND CONVERSION OF ITS DEBT IN THE PARTNERSHIP AUSTRALIABASED NEWS CORP IS CONTROLLED BY RUPERT MURDOCH WFXT BROADCASTING OVER CHANNEL 25 HAS RIGHTS TO BROADCAST BOSTON CELTICS BASKETBALL GAMES AND FOX PROGRAMS BOSTON CELTICS BROADCASTING IS OWNED BY BOSTON CELTICS LP WHICH ALSO OWNS THE TEAM AND HAS PUBLICLY TRADED UNITS IT'S IMPORTANT TO CLARIFY THAT WE ARE POSITIONING OURSELVES FOR A POSSIBLE FUTURE OPPORTUNITY TO BUY WFXT SAYS DENNIS PETROSKEY A SPOKESMAN FOR FOX AT THIS TIME WE'VE NO DECISION REGARDING OUR COURSE OF ACTION A LOCAL TV PURCHASE BY NEWS CORP WOULD CONFLICT WITH FEDERAL COMMUNICATIONS COMMISSION'S CROSSOWNERSHIP RULES AGAINST OWNERSHIP OF BOTH A NEWSPAPER AND A TV STATION IN THE SAME MARKET NEWS CORP PREVIOUSLY OWNED WFXT BUT SOLD IT TO CELTICS BROADCASTING IN 1990 TO COMPLY WITH THE FCC RULE RECENTLY THE FCC WAIVED THE CROSSOWNERSHIP RULE TO LET NEWS CORP WHICH ALSO OWNS WNYWTV IN NEW YORK PURCHASE THE AILING NEW YORK POST THE BOSTON HERALD WITH 350000 IN CIRCULATION STRUGGLES LOCALLY AGAINST THE LARGER BOSTON GLOBE BOSTON IS ONE OF A HANDFUL OF CITIES WITH COMPETING DAILIES ACCORDING TO THE AGREEMENT NEWS CORP COULD CONVERT DEBT IT HOLDS IN CELTICS BROADCASTING INTO A 25 OWNERSHIP INTEREST AFTER JAN 1 1995 WHICH WOULD BE THE EARLIEST DATE OF ANY HERALD SALE CONVERSION OF THE DEBT WOULD GIVE NEWS CORP A 10YEAR OPTION TO ACQUIRE AN ADDITIONAL 26 OF CELTICS BROADCASTING FOR 15 MILLION AND THE OPTION TO BUY THE REMAINING 49 FOR A MINIMUM OF 45 MILLION LESS BANK DEBT CURRENTLY AT 10 MILLION THE MINIMUM PRICE IS SUBJECT TO AN INCREASE BASED ON FUTURE OPERATING RESULTS 9310050097 931005 WHO'S NEWS AMOCO CORP AMOCO CORP CHICAGO JOHN L CARL 45 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT FINANCE A NEW POSITION AT THIS LARGE OIL CORPORATION HE RETAINS THE TITLE OF CONTROLLER MR CARL HAD BEEN A VICE PRESIDENT ROBERT C CARR WAS NAMED PRESIDENT OF THE AMOCO TECHNOLOGY CO UNIT MR CARR 52 WAS PREVIOUSLY VICE PRESIDENT AND TREASURER AT THE PARENT COMPANY HE SUCCEEDS LV TRIGGIANI WHO WAS NAMED A SENIOR VICE PRESIDENT FOR AMOCO TECHNOLOGY 9310050096 931005 INTERNATIONAL NINTENDO CO LOWERS EARNINGS ESTIMATES CITING SURGES IN YEN SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPANESE VIDEOGAME POWERHOUSE NINTENDO CO TRIMMED ITS EARNINGS FORECAST FOR THE YEAR JOINING THE CHORUS OF JAPANESE ELECTRONICS COMPANIES BEMOANING HOW THE RAPID APPRECIATION OF THE YEN HAS EATEN INTO PROFITS AND DAMPED OVERSEAS SALES FOR THE YEAR ENDING MARCH 31 NINTENDO EXPECTS CONSOLIDATED PRETAX PROFIT OF 121 BILLION YEN 114 BILLION DOWN 30 FROM ITS PREVIOUS FORECAST OF 173 BILLION YEN LAST YEAR NINTENDO POSTED PRETAX PROFIT OF 16623 BILLION YEN THE COMPANY SAID IT EXPECTS CONSOLIDATED SALES TO TOTAL 550 BILLION YEN DOWN 18 FROM A FORECAST OF 670 BILLION YEN LAST YEAR SALES TOTALED 63467 BILLION YEN THE NINTENDO ANNOUNCEMENT MAKES CLEAR THAT EVEN HIGHFLYING VIDEO GAME MAKERS AREN'T IMMUNE TO THE YEN'S SHOW OF FORCE ANALYSTS ARE BRACING FOR MORE DOWNWARD REVISIONS FROM CONSUMER ELECTRONICS MAKERS FOLLOWING MATSUSHITA ELECTRIC INDUSTRIAL CO'S SLASHING OF ITS FORECASTS LAST WEEK DESPITE THE OVERALL DISMAL PERFORMANCE OF PUBLICLY HELD JAPANESE COMPANIES IN THE PAST FISCAL YEAR THE GAME MAKERS SAW RISING SALES AND PROFITS UNLIKE ARCHRIVAL SEGA ENTERPRISES LTD NINTENDO HAS CONCENTRATED ALL OF ITS PRODUCTION IN JAPAN THIS MEANS THE LATTER IS PARTICULARLY VULNERABLE TO CURRENCY FLUCTUATIONS SEGA ASSEMBLES 70 OF ITS GAME SYSTEMS IN TAIWAN HONG KONG AND CHINA NINTENDO HASN'T ADOPTED ANY COUNTERMEASURES ESPECIALLY TO DEAL WITH THE YEN'S ADVANCE BUT THE SPOKESMAN SAID THE COMPANY IS STUDYING SHIFTING PRODUCTION OF ITS HANDHELD GAME BOY UNITS TO CHINA BEGINNING NEXT APRIL THE SPOKESMAN HOWEVER SAID OVERSEAS PRODUCTION OF HOMEUSE VIDEOGAME DECKS AND CARTRIDGES WOULD BE FURTHER DOWN THE ROAD AND DEPENDENT ON THE SUCCESS OF THE PROPOSED CHINA MANUFACTURING VENTURE 9310050095 931005 UNITED AIR AND LUFTHANSA SIGN MARKETING ACCORD FRANKFURT UNITED AIRLINES AND LUFTHANSA AS EXPECTED SIGNED A BROAD COMMERCIAL AGREEMENT HERE THAT WILL RESULT IN JOINT SERVICES BEING OFFERED AS EARLY AS DEC 1 NO EQUITY WILL CHANGE HANDS BUT THE TWO CARRIERS HOPE TO BOOST THEIR REVENUES AND MARKET SHARE BY JOINT MARKETING AND OPERATIONS AT THE HEART OF THE COOPERATION PACT IS A CODESHARING ARRANGEMENT UNDER WHICH THE TWO WILL USE THEIR OWN FLIGHT NUMBERS FOR EACH OTHERS' SERVICES THAT WAS MADE POSSIBLE BY A RECENTLY SIGNED AIRSERVICES TREATY BETWEEN THE US AND GERMANY IN ADDITION THE TWO WILL SHARE CHECKIN FACILITIES AND AIRPORT LOUNGES WITH UNITED MOVING INTO THE LUFTHANSA TERMINAL IN FRANKFURT AND LUFTHANSA SETTING UP OPERATIONS AT UNITED'S TERMINAL AT CHICAGO'S O'HARE INTERNATIONAL AIRPORT THE TWO CARRIERS ALSO WILL JOINTLY OPERATE THEIR FREQUENTFLIER PROGRAMS WITH ONE OF THE LARGEST AIRLINE NETWORKS IN THE WORLD UNITED A UNIT OF UAL CORP OF CHICAGO GIVES LUFTHANSA NEARLY UNLIMITED ACCESS TO THE US MARKET THE DEAL ALSO WILL STRENGTHEN UNITED'S PRESENCE IN EUROPE 9310050094 931005 LAW LEGAL BEAT TERRORISM'S HORRORS ARE STRESSED AS TRADE CENTER BOMB TRIAL STARTS BY MARGARET A JACOBS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AS THE LONGANTICIPATED WORLD TRADE CENTER BOMBING TRIAL BEGAN IN FEDERAL COURT HERE PROSECUTORS FIXED ON THE HORRORS OF TERRORISM WHILE DEFENSE LAWYERS MOVED TO CAST DOUBT ON THEIR CLIENTS' INVOLVEMENT OPENING FOR THE GOVERNMENT LEAD PROSECUTOR J GILMORE CHILDERS CALLED THE FEB 26 BLAST WHICH KILLED SIX AND INJURED MORE THAN 1000 THE SINGLE MOST DESTRUCTIVE ACT OF TERRORISM EVER COMMITTED IN THE US AT THE START HE DEVOTED FIVE MINUTES TO AN INTRICATE RECREATION OF THE LIVES OF THOSE LOST IN THE LUNCHTIME BLAST AND TO THE FEAR THE ERUPTION INSTILLED MR CHILDERS CONCEDED THAT HE WOULD OFFER NO WITNESS WHO SAW ANY OF THE FOUR DEFENDANTS MIX EXPLOSIVES OR DRIVE THEM IN A YELLOW RYDER RENTAL VAN TO THE WORLD TRADE CENTER INSTEAD HE SAID THE GOVERNMENT WOULD PROVE GUILT BY A STEADY ACCUMULATION OF EVIDENCE AMONG OTHER THINGS HE SAID THE GOVERNMENT WOULD SHOW THAT SOME OR ALL OF THE DEFENDANTS PURCHASED THE NECESSARY CHEMICALS TO MANUFACTURE A HIGHLY EXPLOSIVE BOMB AND THAT TRACES OF THE CHEMICALS WERE FOUND ON SOME OF THEIR CLOTHING IN SOME OF THEIR APARTMENTS AND IN A STORAGE UNIT SOME OF THEM RENTED ACKNOWLEDGING THAT SOME DEFENDANTS WERE MORE INVOLVED THAN OTHERS MR CHILDERS SAID THAT THE OVERWHELMING WEIGHT OF THE EVIDENCE WOULD PROVE A VAST CONSPIRACY TO IMPORT TERRORISM AND THEN TAKE CREDIT FOR IT DEFENSE ATTORNEYS SAID THAT THEY WOULD PROVE THAT THE GOVERNMENT HAD BEEN OVERZEALOUS IN ITS ATTEMPT TO SOLVE A HORRIFIC CRIME THAT THEIR CLIENTS WERE VICTIMS TOO AND THAT THEY HAVE LEGITIMATE EXPLANATIONS SOME BOUND IN THE NATURE OF IMMIGRANT ARABIC CULTURE FOR SEEMINGLY UNUSUAL BEHAVIOR THE DEFENSE ATTORNEYS REJECTED THE PROSECUTORS' ATTEMPTS TO MONOPOLIZE THE FEELINGS OF SYMPATHY AND PATRIOTISM ASSOCIATED WITH THE BLAST REITERATING THAT THEY TOO WERE STUNNED AND SADDENED BY ITS EFFECTS THIS CASE WAS NOT ABOUT WHETHER THERE WAS A TERRIBLE TRAGEDY AT THE WORLD TRADE CENTER OF COURSE THERE WAS SAID ROBERT PRECHT ATTORNEY FOR DEFENDANT MOHAMMAD SALAMEH HASSEN IBN ABDELLAH ATTORNEY FOR DEFENDANT MAHMUD ABOUHALIMA ACCUSED THE PROSECUTORS OF PLAYING ON THE JURORS' EMOTIONS WE'RE ALL AMERICAN CITIZENS THE BOMBING OF THE WORLD TRADE CENTER TOUCHED US ALL HE SAID THE MOST EXPERIENCED OF THE DEFENSE ATTORNEYS AUSTIN CAPRIELLO MENTIONED THAT HIS CLIENT AHMAD AJAJ WAS A FORMER ANTICOMMUNIST FREEDOM FIGHTER IN AFGHANISTAN WHO ONCE WORKED AT A PIZZA SHOP IN TEXAS THE OPENING STATEMENTS WERE MADE IN A THIRDFLOOR OAKPANELED COURTROOM AT THE FEDERAL COURTHOUSE IN LOWER MANHATTAN FEWER THAN SIX BLOCKS AWAY FROM THE FABLED TOWERS THAT WERE DAMAGED IN THE BLAST CRAMMED INTO THE ROWS OF BENCHES WERE ABOUT 70 REPORTERS AND ABOUT TWO DOZEN OTHER SPECTATORS SOME IN THE AUDIENCE WORE JEWISH YARMULKES AND OTHERS WERE IN TRADITIONAL MUSLIM SKULL CAPS ALL THE DEFENDANTS IN THE CASE ARE MUSLIMS THE JURY OF EIGHT WOMEN AND FOUR MEN LISTENED ATTENTIVELY TO THE OPENINGS AND SEEMED OBLIVIOUS TO THE SIGNS OF TENSION SURROUNDING THE TRIAL MEANWHILE A BROAD ASSORTMENT OF FEDERAL MARSHALS CIRCULATED FREELY THROUGHOUT THE PUBLIC SECTION AND JUDGE KEVIN T DUFFY IN AN APPARENTLY SECURITYMOTIVATED DECISION CHOSE NOT TO HAVE SPECTATORS RISE IN THE TRADITIONAL SIGN OF RESPECT AS JURORS ENTERED THE COURTROOM DURING THE DAY'S SERIES OF OPENING STATEMENTS TWO OF THE LAWYERS FOR THE ACCUSED FORESHADOWED SPECIFIC DEFENSES ATTORNEY CAPRIELLO NOTED THAT HIS CLIENT MR AJAJ HAD BEEN JAILED AFTER ATTEMPTING TO ENTER THE COUNTRY WITH A TERRORISTS' LIBRARY AS PROSECUTORS PUT IT OF BOMBMAKING MANUALS IN SEPTEMBER 1992 THEREFORE MR CAPRIELLO ARGUED HIS CLIENT COULDN'T HAVE USED THE MANUALS WHICH HAD BEEN SEIZED TO FURTHER ANY CONSPIRACY DEFENSE LAWYER MR PRECHT ARGUED THAT HIS CLIENT MR SALAMEH HAD EXONERATED HIMSELF BY VIRTUE OF HIS INNOCENT BEHAVIOR INCLUDING HIS REPORTING THAT THE YELLOW RENTAL VAN WAS MISSING A FULL 15 HOURS BEFORE THE BOMBING AND THEREBY ENCOURAGING THE GOVERNMENT TO SEARCH FOR IT MR SALAMEH ALSO RETURNED TO THE RENTAL DEALER AFTER THE BOMBING TO SEEK TO RECLAIM HIS DEPOSIT OTHER DEFENSE LAWYERS RAISED THE SPECTER OF INVESTIGATORIAL MISCONDUCT AND RELIED LESS ON FACTUAL REFUTATIONS OF THE GOVERNMENT'S CASE THAN ON GENERAL PLEAS TO THE JURY TO PRESUME THEIR CLIENTS INNOCENT AND NOT TO BRAND THEM BECAUSE OF THEIR RELIGIOUS BELIEFS ATIQ AHMED ONE OF TWO DEFENSE ATTORNEYS WHO ARE MUSLIM ACCUSED GOVERNMENT INVESTIGATORS OF MISLEADING HIS CLIENT'S 19YEAROLD PREGNANT WIFE INTO BELIEVING THAT HER HUSBAND NIDAL AYYAD WAS INVOLVED WITH OTHER WOMEN THE TRIAL WILL RESUME TODAY WITH AN EXPECTED CONTINUATION OF BACKGROUND TESTIMONY ON THE LOCATION OF THE BLAST THE TRADE CENTER COMPLEX ITSELF THE GOVERNMENT'S POWER TO ASSIGN SWEEPING CLEANUP RESPONSIBILITY TO ONE COMPANY IN A POLLUTION CASE WHERE SEVERAL ARE RESPONSIBLE WAS SCALED BACK BY A FEDERAL APPEALS COURT THE FIFTH US CIRCUIT COURT OF APPEALS IN NEW ORLEANS RULED THAT NO SINGLE DEFENDANT CAN BE FOUND FULLY LIABLE FOR ALL THE CLEANUP COSTS IF THERE IS A REASONABLE WAY TO DIVIDE THE BLAME AMONG ALL THE DEFENDANTS THE RULING IS SIGNIFICANT BECAUSE IN MANY SUPERFUND CLEANUP CASES THE ENVIRONMENTAL PROTECTION AGENCY HAS CONTENDED THAT ANY COMPANY LINKED TO A POLLUTION SITE IS POTENTIALLY LIABLE FOR ALL DAMAGES THAT LEGAL DOCTRINE IS KNOWN AS JOINT AND SEVERAL LIABILITY THE CASE BEFORE THE APPEALS COURT INVOLVED A COMPANY THAT WAS FOUND JOINTLY AND SEVERALLY LIABLE FOR THE 18 MILLION TOTAL COST OF CLEANING UP AN ODESSA TEXAS WATER SYSTEM AFTER TWO OTHER COMPANIES INVOLVED IN THE CONTAMINATION SETTLED OUT OF COURT THE LOWER COURT RULED THAT THE COMPANY HAD TO PAY THE DAMAGES BECAUSE THERE WAS NO RELIABLE WAY TO DIVVY UP THE LIABILITY THE LOWER COURT SAID SEVERAL METHODS OF APPORTIONING THE BLAME WERE TRIED BUT REACHED DIFFERENT RESULTS THE APPEALS COURT RULED THAT THE EXISTENCE OF COMPETING THEORIES ON HOW TO DIVIDE THE BLAME WASN'T ENOUGH REASON TO THROW OUT ALL THE THEORIES IT ORDERED THE CASE BACK TO TRIAL FOR FURTHER HEARINGS TO ASSESS INDIVIDUAL LIABILITY THE DECISION IS BINDING ONLY IN THOSE STATES COVERED BY THE FIFTH CIRCUIT WHICH ARE LOUISIANA MISSISSIPPI AND TEXAS BUT IT IS IN LINE WITH RECENT FEDERAL APPELLATE OPINIONS IN PHILADELPHIA AND NEW YORK WHICH ALSO HAVE LIMITED THE THEORY OF BLANKET LIABILITY FOR A SINGLE DEFENDANT IN POLLUTION CASES IN FAVOR OF REQUIRING A MORE PRECISE SHOWING OF INDIVIDUAL RESPONSIBILITY MILO GEYELIN CONTRIBUTED TO THIS ARTICLE 9310050093 931005 LEISURE & ARTS STEAMY RUSSIAN SOAP WITH A CAPITALIST MESSAGE BY ALEXANDRA TUTTLE MS TUTTLE A FREQUENT CONTRIBUTOR TO THIS PAGE FROM HER BASE IN PARIS WAS ALSO A FEARLESS WAR CORRESPONDENT SHE DID NOT SURVIVE WHEN THE GEORGIAN TROOP FLIGHT SHE HAD BOARDED WAS SHOT DOWN OVER SUKHUMI ON SEPT 22 SHE WROTE THIS ARTICLE SHORTLY BEFORE HER DEATH BABA POLYA GETS INTO WITCHCRAFT AFTER SHE IS JILTED BY HER FIANCE OLGA PLAYS HOOKY FROM SCHOOL TO SELL VODKA ON THE STREETS HER FATHER SERGEI IS IN LOVE WITH VARYA THE DISAFFECTED WIFE OF A DRUNKEN PLUMBER SERGEI'S OTHER DAUGHTER TANYA FALLS IN LOVE WITH DIMA WHO BETRAYS HER ANATOLI HAS A CLOSE ENCOUNTER WITH THE MAFIA IF THAT WERE NOT BAD ENOUGH HIS WIFE IS THINKING OF LEAVING HIM FOR A FAT CAT FROM GERMANY A FORMER LOVER OF HERS WHO LEFT THE COUNTRY AND MADE GOOD AS EVERYONE WHO TUNES IN TO ECHO MOSKVY NOW KNOWS UNREQUITED LOVE AND ILLICIT SEX DON'T JUST HAPPEN IN SANTA BARBARA THEY ALSO OCCUR EVERY EVENING AT 630 AT DOM 7 PODYEZD 4 OR HOUSE 7 ENTRANCE 4 THE NAME OF RUSSIA'S LATEST SOAP OPERA CURRENTLY FOLLOWED BY MILLIONS OF LISTENERS FROM ALL OVER THE FORMER SOVIET UNION ALTHOUGH THE ADDRESS LACKS THE GLAMOUR OF A FANCY ZIP CODE OR A COASTAL CITY WITH A SPANISH NAME IT'S THE PLACE WHERE THE SOAP OPERA'S 10 ORDINARY EVERYDAY RUSSIAN CHARACTERS LIVE LOVE AND THEY HOPE WORK THEREIN LIES THE CHARM OF THE SHOW THE RUSSIAN PEOPLE LOVE THE SOAP OPERA BECAUSE IT IS ABOUT PEOPLE LIKE THEM SAYS ANTONINA DMITRYEVNA THE RUSSIAN ACTRESS WHO PLAYS THE BABUSCHKA OR OLD LADY IN THE SERIES WE ALL LIVE IN GRIM BUILDINGS LIKE HOUSE 7 THE AMERICAN SOAP TRADITION HOLDS THAT ESCAPE FROM GRIM REALITY IS THE WHOLE POINT OF A SOAP MANY RUSSIANS SEEM TO AGREE A MEXICAN TV SERIES ABOUT THE TRIALS AND TRIBULATIONS OF BEING RICH CALLED THE RICH ALSO CRY IS A HUGE HIT BUT HOUSE 7 HIDDEN AGENDA ITS PURPOSE IS NOT ONLY TO ENTERTAIN BUT ALSO INFORM ITS LISTENERS ABOUT THAT MYSTERY OF MYSTERIES THE RIDDLE WRAPPED UP IN AN ENIGMA THE HIDDEN WEAPON OF THE WESTERN DEMOCRACIES IN OTHER WORDS THE MARKET ECONOMY AMID THE LOVE STORIES AND INTRIGUE LIES A HOWTO MANUAL IN BEGINNER CAPITALISM COMPLETE WITH USEFUL INFORMATION ABOUT HOW TO DEAL WITH RAPACIOUS OFFICIALS HOW TO SET UP A SMALL BUSINESS HOW TO RESIST THE TEMPTATIONS OF THE MAFIA THERE ARE OFFICE SCENES AND BUSINESS DILEMMAS IN AMERICAN SOAPS TOO BUT THEY USUALLY SERVE TO SET THE SCENE FOR STEAMY SEX AND OTHER FUN KINDS OF MAYHEM IN THIS SERIES THE OFFICE THE STORE THE FACTORY ARE THE RAISON D'ETRE OF ALL THE INTRIGUE THERE IS A REASON FOR THE HIGHMINDED TONE OF THE ENTERPRISE IT IS A PRODUCT OF THE BRITISH BROADCASTING CORP BACK IN THE AUTUMN OF 1991 IN A SPEECH GIVEN BEFORE THE PRINCE OF WALES BUSINESS FORUM JOHN TUSA FORMER CHIEF OF THE BBC WORLD SERVICE PROPOSED A MARSHALL PLAN OF THE MIND FOR RUSSIA AND OTHER EASTERNBLOC COUNTRIES ITS PURPOSE TO AIRLIFT IN THE RATHER POMPOUS TERMS OF BBCSPEAK THE KNOWHOW AND THE SEED CORN KNOWLEDGE NECESSARY TO ESTABLISH A FREEMARKET ECONOMY IN RUSSIA GETTA REPINSKAYA THE SOAP'S RUSSIAN PRODUCER PUTS IT MORE SUCCINCTLY THE PURPOSE OF THIS SHOW IS TO TEACH THE RUSSIAN PEOPLE HOW TO CATCH FISH WITH FISHING IN MIND THE BBC HAS RECEIVED 15 MILLION 23 MILLION FROM THE BRITISH HOWTO FOUNDATION AS WELL AS 500000 750000 FROM BRITISH INDUSTRIES THE MONEY HAS BEEN USED TO SET UP FOUR RADIO PROGRAMS THAT INCULCATE THE ART OF THE DEAL THE SOAP OPERA A WEEKLY BUSINESS MAGAZINE THE FREE MARKET SOCIETY A DOCUMENTARY SERIES ON FREEMARKET ECONOMICS AND A SERIES FOR SMALLBUSINESS OWNERS COMPLETE WITH SEMINARS FACT SHEETS AND A WORKBOOK ENTITLED IN BUSINESS FURTHER PROGRAMS ARE PLANNED MIXING BUSINESS WITH PLEASURE WHILE KEEPING THE PEOPLE IN THE AUDIENCE ON THE EDGE OF THEIR SEATS IS NO SMALL TASK MR TUSA ARGUES THAT THE PROGRAMS ARE AN INVALUABLE WAY OF ESTABLISHING SKILLS AND CREATING THE CHANGE OF ATMOSPHERE THAT RUSSIA SO URGENTLY NEEDS AT THE MOMENT PUT THAT WAY THE SOAP SOUNDS ABOUT AS FASCINATING AS SOIL ANALYSIS THE REFERENCE IS NO ACCIDENT THE BBC HAS HAD LONG PRACTICE IN THE SUCCESSFUL BLENDING OF HIGHMINDED EDIFICATION AND THE MORE VULGAR QUALITIES OF SUSPENSE ROMANCE AND INTRIGUE ITS LONGRUNNING AND SUCCESSFUL SOAP ABOUT AN ENGLISH FARMING COMMUNITY THE ARCHERS BEGAN WITH THE SAME DIDACTIC PURPOSE IN 1951 TO ENTERTAIN ITS LISTENERS AS IT INSTRUCTED THEM IN THE MINISTRY OF AGRICULTURE'S NEW POLICIES LIKE THE ARCHERS HOUSE 7 WEARS ITS SERIOUS PURPOSE LIGHTLY MIXED IN WITH ALL THE LOVE AFFAIRS BETWEEN INHABITANTS OF THE BUILDING'S EIGHT FLOORS ARE THE DIFFICULTIES THAT CONTEMPORARY RUSSIANS MUST FACE AFTER 70 YEARS OF COMMUNISM SERGEI A BUSINESSMAN FROM ST PETERSBURG STRUGGLES TO GET SUPPLIES FROM A FACTORY IN UKRAINE UKRAINE IS A SEPARATE COUNTRY NOW AND GETTING MONEY AND SUPPLIES FROM ONE MEMBER OF THE CIS TO ANOTHER IS HARDER THAN IT WAS IN THE GOOD OLD COMMUNIST DAYS WHEN MOSCOW DIRECTED COMMERCIAL TRAFFIC FROM ONE END OF ITS FARFLUNG EMPIRE TO ANOTHER DIMA THE SERIES' ARCHETYPAL SMALLBUSINESS MAN IS SELLING ILLEGAL GAS GUNS AS WELL AS IMPORTED LADIES UNDERWEAR FROM HIS SHOP ON THE GROUND FLOOR OF THE BUILDING HE WONDERS WHETHER TO GET INTO THE ILLEGALDRUG TRADE AS WELL THEN THERE IS THE ENTERPRISING WOMAN WHO MAKES UP TRAIN SCHEDULES NONE EXIST IN RUSSIA TO SELL TO THE TRAVELERS WHO MUST OTHERWISE GET TO ONE OF MOSCOW'S MANY TRAIN STATIONS WHERE THE DAY'S SCHEDULE IS LISTED LIZ RIGBEY THE SOAP'S CHIEF DRAMA CONSULTANT HOPES TO INCLUDE OTHER ISSUES AS WELL SUCH AS AIDS NATIONALISM AND RACISM WE ALREADY HAVE A JEWISH CHARACTER WHICH RAISES THE DELICATE ISSUE OF ANTISEMITISM BUT SHE IS KEEPING THE HEAVY POLITICAL AND ECONOMIC ISSUES TO A MINIMUM A SOAP OPERA IS PRIMARILY ABOUT ENTERTAINMENT SAYS THE FORMER EDITOR OF THE ARCHERS WITH ONLY 15 MINUTES IN WHICH TO ADVANCE THE PLOT ENOUGH TO ENTICE LISTENERS TO TUNE IN TO THE NEXT DAY'S INSTALLMENT WE HAVE TO KEEP IT LIGHT YOU CAN'T OVERWHELM THE ACTION WITH A LOT OF HEAVY POLITICAL AND ECONOMIC INFORMATION MS RIGBEY HAS NOTHING BUT PRAISE FOR HER RUSSIAN COLLEAGUES WHO PRODUCE DIRECT ACT AND WRITE THE SOAP OPERA I LOVE THE EMOTIONAL PITCH AT WHICH THEY DO EVERYTHING INCLUDING WORK BUT PERSUADING THE WRITERS TO KEEP TO THE QUICK NARRATIVE PACE THAT HAS THE AUDIENCE PANTING FOR THE NEXT EPISODE HAS BEEN DIFFICULT THE RUSSIANS HAVE A STRONG LITERARY TRADITION THEY ARE USED TO WRITING LONG DECLAMATORY DIALOGUES IN THE CLASSICAL MODE NOT SHORT SNAPPY EXCHANGES IN THE STREET VERNACULAR SOME LISTENERS WOULD PREFER THE CLASSICAL RUSSIAN THE STREET LANGUAGE SNIFFED ONE LISTENER IN A LETTER IS UNSUITABLE THEN THERE IS THE KNOTTY PROBLEM OF SUSPENSE THE LOWBROW NEED FOR INTRIGUE LONG ANATHEMA TO RUSSIAN WRITERS SCHOOLED IN THE SURREALIST RATHER THAN THE REALIST TRADITION I TRY TO TELL THEM THAT EACH SCENE HAS TO ADVANCE THE PLOT IN SOME WAY SAYS MS RIGBEY OF THE EIGHT SCRIPTWRITERS SHE ADVISES DURING HER MONTHLY TRIPS TO MOSCOW IT IS HARD FOR THEM TO GET USED TO WRITING STORIES IN WHICH SOMETHING HAPPENS EVERY SINGLE MINUTE ALEXANDER TIMOFEEVSKY A WELLKNOWN POET WHO IS ONE OF THE SHOW'S MORE SEASONED WRITERS BRAVELY RESISTS ANGLOAMERICAN DICTATES WITH REGARD TO PLOT DEVELOPMENT HE IS MOST CONCERNED BY THE LACK OF PSYCHOLOGICAL COHERENCE I WOULD LIKE TO GIVE PSYCHOLOGICAL DEPTH TO THE LOVE STORIES INTERESTING CONFLICTS BETWEEN THE WESTERN SOAPOPERA TRADITION AND RUSSIAN LITERATURE ARE PERHAPS INEVITABLE A POTOM AND THEN IS A QUESTION FUNDAMENTAL TO WESTERN SOCIETY IT IS THE SORT OF QUESTION THAT CAPITALISTS LOVE TO ASK IN RUSSIA ON THE OTHER HAND EVERYONE KNOWS WHAT WILL HAPPEN NEXT WE ARE A PESSIMISTIC CULTURE SAYS A MOSCOW BRAIN SURGEON WHO TUNES HOUSE 7 EVERY EVENING WE KNOW THAT A CATASTROPHE IS LIKELY TO HAPPEN NEXT THE BRAIN SURGEON CLAIMS THAT HE IS COMPLETELY INDIFFERENT TO THE SHOW'S CAPITALIST LESSONS AS A DOCTOR HE IS SUPPOSED TO BE ABOVE ALL THAT A TAXI DRIVER IN ST PETERSBURG ON THE OTHER HAND IDENTIFIES WITH DIMA I KNOW WHAT IT'S LIKE TO TRY TO MAKE MONEY IN THIS COUNTRY ESPECIALLY WITH THE MAFIA AFTER YOU ALL THE TIME FOR PAYOFFS WHAT NEXT IF THE FREEMARKETEERING OF HOUSE 7 TAKES HOLD IN THE REAL WORLD OF ITS LISTENERS THE SHOW'S WRITERS WILL BE FREE TO CONCENTRATE EXCLUSIVELY ON THE BUSINESS OF MOST SOAPS ROMANCE WITH A LITTLE MURDER THROWN IN FOR GOOD MEASURE IT WILL BE A LOT MORE FUN SAYS THE TAXI DRIVER OF THE SHOW HE LOVES ONCE THE RUSSIANS GET THE HANG OF CAPITALISM 9310050092 931005 ENTERPRISE ENTREPRENEURS URGED TO BE WARY OF SOME LOAN BROKERS CASE OF CALIFORNIA CONSULTANT OFFERS INSIGHTS TO SMALLBUSINESS OWNERS BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL EARLY LAST YEAR JOSEPH BARTOL NEEDED TO BORROW MORE THAN 100000 TO BUY A LOS ANGELES DINER SO HE ASKED CONSULTANT DAVID TURKIN FOR ASSISTANCE IN LANDING A FEDERALLY GUARANTEED LOAN MR BARTOL SAYS HE AND HIS WIFE VIEWED THE DINER AS OUR LAST SHOT AT OWNING A BUSINESS BECAUSE HIS LUCK HAD SOURED SELLING REAL ESTATE THOUGH THE COUPLE LACKED ENOUGH MONEY FOR A DOWN PAYMENT MR TURKIN TOLD HIM THAT HE DIDN'T SEE ANY PROBLEM GETTING A LOAN MR BARTOL SAYS HE ADDS WE WERE DESPERATE AND PUT ALL OUR HOPES IN MR TURKIN ALONG WITH A 2000 FEE MR BARTOL SAYS HE HAD DIFFICULTY GETTING RESPONSES FROM MR TURKIN AFTER HE TURNED OVER THE MONEY HE SAYS MR TURKIN NEVER PUT HIM IN CONTACT WITH ANY LENDERS THE DINER PURCHASE FELL THROUGH AND MR BARTOL MOVED HIS FAMILY TO BRIDGEPORT CONN IN RETROSPECT HE SAYS MR TURKIN DESERVES JAIL MR TURKIN IS A LOAN PACKAGER AN INDEPENDENT CONSULTANT WHO SPECIALIZES IN PUTTING TOGETHER APPLICATIONS FOR THE SMALL BUSINESS ADMINISTRATION'S LOANGUARANTEE PROGRAM SOME PACKAGERS HAVE BEEN INVESTIGATED FOR DEFRAUDING THE SBA NOW OTHER PACKAGERS ARE ACCUSED OF VICTIMIZING ENTREPRENEURS THEMSELVES IN RECENT MONTHS MR BARTOL AND MORE THAN A DOZEN OTHER SMALLBUSINESS PEOPLE HAVE COMPLAINED TO CALIFORNIA STATE INVESTIGATORS THAT MR TURKIN BILKED EACH ONE OUT OF THOUSANDS OF DOLLARS IN UPFRONT FEES BY MAKING FALSE PROMISES TO HELP THEM GET SBAGUARANTEED LOANS STATE JUSTICE DEPARTMENT INVESTIGATORS RECENTLY SEIZED DOCUMENTS FROM MR TURKIN'S HOME AND THE WOODLAND HILLS CALIF OFFICES OF HIS BUSINESS INTERCAL FINANCIAL ACCORDING TO A SEARCHWARRANT AFFIDAVIT FILED BY THE AGENCY IN A LOS ANGELES STATE COURT MR TURKIN WHO HAS A PREVIOUS STATE CONVICTION FOR GRAND THEFT AND PERJURY IN CONNECTION WITH A CALIFORNIA TRAVEL BUSINESS HE RAN ONCE AGAIN MIGHT BE OPERATING A CRIMINAL ENTERPRISE ACCORDING TO THE AFFIDAVIT THERE IS PROBABLE CAUSE TO BELIEVE THAT HE HAS COMMITTED GRAND THEFT THE AFFIDAVIT ALSO SAYS A STATE JUSTICE DEPARTMENT OFFICIAL SAYS AN INVESTIGATION OF MR TURKIN IS CONTINUING BUT DECLINES FURTHER COMMENT MR TURKIN REFERRED ALL INQUIRIES CONCERNING THIS ARTICLE TO HIS ATTORNEY RAOUL ROTH MR ROTH SAYS MR TURKIN NOW IS AN HONEST BUSINESSMAN THE LAWYER CITES SEVERAL SMALLBUSINESS OWNERS WHO GOT SBABACKED LOANS THROUGH INTERCAL FINANCIAL AND SAY THEY WERE HAPPY WITH MR TURKIN'S WORK YOU BET I WAS SATISFIED HE DID EVERYTHING ABOVEBOARD SAYS FRANK CHRISTIE PRESIDENT OF CHRISTIE STEEL FABRICATION INC SAN JACINTO CALIF WHICH USED MR TURKIN TO GET A LOAN SEVERAL YEARS AGO MR ROTH SAYS HE BELIEVES SOME PEOPLE WHO COMPLAINED TO THE STATE DIDN'T PAY THEIR FEES AND HAD NO RIGHT TO EXPECT MR TURKIN TO HANDLE THEIR APPLICATIONS WHATEVER THE OUTCOME MR TURKIN'S CASE OFFERS SOME CAUTIONARY INSIGHTS TO CREDITHUNGRY ENTREPRENEURS AS FINANCING HAS GOTTEN SCARCER MANY ENTREPRENEURS HAVE TURNED TO SOCALLED ADVANCEFEE LOAN BROKERS WHO OFFER TO ARRANGE A LOAN IN RETURN FOR UPFRONT FEES THAT CAN TOTAL TENS OF THOUSANDS OF DOLLARS SBA LOAN PACKAGERS ARE ONE FORM OF SUCH LOAN BROKERS THE PROBLEM LAWENFORCEMENT OFFICIALS ALLEGE IS THAT MANY ADVANCEFEE LOAN BROKERS ARE CROOKS THEY SAY ENTREPRENEURS SHOULD BE WARY OF ANY LOAN BROKER WHO ASKS FOR MONEY UPFRONT MR TURKIN OPERATES IN A PARTICULARLY POPULAR LENDING AREA FOR SMALL BUSINESSES ONE OF THE FEW EXPANDING CREDIT SOURCES THE SBA LOANGUARANTEE PROGRAM HAS MORE THAN DOUBLED IN THE PAST FIVE YEARS TO NEARLY 65 BILLION ANNUALLY IN NEW LOANS SUCH GROWTH HAS ATTRACTED MANY BANKS AND LOAN CONSULTANTS PACKAGERS CLAIM EXPERTISE IN FILLING OUT THE APPLICATIONS FOR SBAGUARANTEED LOANS AND GUIDING THE APPLICATION THROUGH THE APPROVALS NEEDED FROM A BANK AND THE FEDERAL AGENCY ENTREPRENEURS WHO HAVE USED MR TURKIN SAY HE CHARGES AN INDIVIDUAL UP TO 4000 TO PACKAGE A LOAN APPLICATION WHILE SOME PACKAGERS GET CUSTOMERS THROUGH BANK REFERRALS MR TURKIN REGULARLY PROMOTES HIS SERVICES IN MAJOR NEWSPAPERS A RECENT AD HE RAN IN THIS NEWSPAPER FOR EXAMPLE SAID SBA LOANS FOR ALL YOUR BUSINESS NEEDS CALL A PRO A WALL STREET JOURNAL SPOKESMAN SAYS WOULDBE ADVERTISERS IN THE LOAN BUSINESS ARE SUPPOSED TO SUPPLY REFERENCES AND A FINANCIAL STATEMENT HOWEVER IT APPEARS THIS PROCEDURE WASN'T FOLLOWED IN THE CASE OF MR TURKIN'S COMPANY THE SPOKESMAN SAYS HE SAYS HE COULDN'T IMMEDIATELY DETERMINE WHY BUT SAYS NO FURTHER ADS WOULD BE ACCEPTED FROM MR TURKIN'S COMPANY UNTIL IT HAS SUCCESSFULLY GONE THROUGH THE JOURNAL'S SCREENING PROCESS CARL VALLADARES A REALESTATE BROKER IN NORTHRIDGE CALIF SAYS MR TURKIN IMPRESSED HIM BY FLASHING LETTERS ADDRESSED TO THE LOAN PACKAGER FROM PRESIDENTS GEORGE BUSH AND RONALD REAGAN MR VALLADARES SAYS HE DIDN'T GET A CLOSE LOOK AT THE DOCUMENTS BUT THEY SEEMED TO BE SAYING GOOD THINGS ABOUT TURKIN MR VALLADARES WHO PAID MR TURKIN'S FIRM A 2000 FEE IN 1990 NO LONGER SAYS GOOD THINGS ABOUT THE LOAN PACKAGER THE REALESTATE BROKER SAYS HE OBTAINED A 2000 JUDGMENT AGAINST THE PACKAGER IN A LOCAL SMALLCLAIMS COURT BECAUSE HE FELT MR TURKIN HAD DONE NOTHING TO JUSTIFY HIS FEE MR VALLADARES SAYS HE HASN'T BEEN ABLE TO COLLECT THE JUDGMENT YET MARVEY CHAPMAN OF INDEPENDENCE CALIF RECALLS MR TURKIN TELLING HER AND HER HUSBAND THAT THEY WERE A PIECE OF CAKE TO OBTAIN AN SBAGUARANTEED LOAN TO BUY A BEDANDBREAKFAST INN IN EASTERN CALIFORNIA THE CHAPMANS DID GET A LOAN BUT NO THANKS TO MR TURKIN SAYS MS CHAPMAN SHE ALLEGES HE TOOK A 2500 FEE AND NEVER PROVIDED THEM ANY EVIDENCE HE EVEN SUBMITTED THEIR LOAN APPLICATION TO ANY BANK AFTER WAITING SEVERAL MONTHS MS CHAPMAN SAYS SHE FINALLY FILLED OUT AN SBAGUARANTEED LOAN APPLICATION ON HER OWN IT WAS APPROVED LAST YEAR MR ROTH SAYS HE CAN'T DISCUSS INDIVIDUAL COMPLAINTS PARTLY BECAUSE STATE INVESTIGATORS HAVE TAKEN CLIENT FILES MR ROTH SAYS MR TURKIN NEVER GUARANTEES THAT A CUSTOMER WILL GET AN SBABACKED LOAN BUT OVER THE PAST TWO YEARS THE ATTORNEY ADDS 60 OF THE SEVERAL DOZEN SUCH APPLICATIONS HE HAS SUBMITTED TO BANKS HAVE BEEN APPROVED MR TURKIN ALSO STAYS IN CLOSE CONTACT WITH CUSTOMERS MR ROTH SAYS WHAT ABOUT THE REAGAN/BUSH CONNECTION MR ROTH OFFERS A FACSIMILE OF DOCUMENTS SIGNED BY THE TWO PRESIDENTS THAT WELCOME MR TURKIN TO THE REPUBLICAN PRESIDENTIAL TASK FORCE A PARTY SUPPORT GROUP MR ROTH SAYS THESE PROBABLY ARE THE DOCUMENTS SEEN BY MR VALLADARES HOWEVER THE ATTORNEY NOTES BEING A REPUBLICAN IS NOT YET CONSIDERED A CRIME 9310050091 931005 WHO'S NEWS METROPOLITAN FINANCIAL CORP METROPOLITAN FINANCIAL CORP MINNEAPOLIS STEVEN G ROTHMEIER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF GREAT NORTHERN CAPITAL WAS NAMED A DIRECTOR OF THIS FINANCIAL SERVICES HOLDING COMPANY EFFECTIVE JAN 1 INCREASING BOARD MEMBERSHIP TO NINE GREAT NORTHERN IS A CLOSELY HELD MERCHANT BANKING CONCERN 9310050090 931005 LEISURE & ARTS BOOKSHELF DON'T BLAME THE BOOMERS BY PHILLIP LONGMAN ONLY NOW ARE THEY BEGINNING TO REAP WHAT THEY HAVE SOWN WRITES CHERYL RUSSELL OF HER FELLOW BABY BOOMERS A GENERATION THAT PUTS PERSONAL INTEREST AND GOALS AHEAD OF COMMUNITY NEEDS MUST WATCH IN DISMAY AS COMMUNITIES DISINTEGRATE FAMILIES BREAK APART SCHOOL BUDGETS SHRINK INNER CITIES DECAY AND BUDGET DEFICITS GROW IN HER NEW BOOK THE MASTER TREND HOW THE BABYBOOM GENERATION IS REMAKING AMERICA PLENUM 274 PAGES 2395 MS RUSSELL ARGUES THAT VIRTUALLY EVERY NEGATIVE TREND IN AMERICAN SOCIETY DERIVES FROM THE SELFISHNESS AND VANITY OF THE BOOMERS IT'S A CURIOUS FEATURE OF OUR TIMES THAT WRITERS WHO WOULD RECOIL FROM SWEEPING GENERALIZATIONS ABOUT BLACKS WOMEN AND OTHER BROAD SOCIAL GROUPS WILL GLIBLY STEREOTYPE THE DIFFERENT GENERATIONS TO WHICH THESE PEOPLE BELONG MS RUSSELL A FORMER EDITOR OF AMERICAN DEMOGRAPHICS MAGAZINE DEPLOYS AN ENDLESS SERIES OF STATISTICS TO SUPPORT HER CLAIM THAT SOMETHING IS TERRIBLY WRONG WITH OUR COUNTRY AND THAT THE EXPLANATION LIES IN THE BABYBOOM GENERATION ITSELF YOUNGER AND OLDER AMERICANS MAY INITIALLY THRILL TO SUCH A MESSAGE UNTIL THEY RECOGNIZE IT FOR WHAT IT IS YET ANOTHER EXAMPLE OF BOOMERCENTRISM AND CULTURAL HUBRIS ACTUALLY THE BOOMERS DIDN'T INVENT INDIVIDUALISM THEY DIDN'T EVEN INVENT PREMARITAL SEX OR THE MODERN ETHOS OF ENTITLEMENT AS LARGE AND AS SELFCENTERED AS THIS GENERATION IS IT CAN'T TAKE FULL CREDIT FOR RUINING THE COUNTRY RATHER TOO OFTEN MS RUSSELL CONFUSES TRENDS THAT RESULT FROM THE SIZE OR AGING OF THE BABYBOOM GENERATION WITH THE MORAL CHARACTER OF ITS INDIVIDUAL MEMBERS A PRIME EXAMPLE IS HER CONDEMNATION OF BOOMERS AS THRIFTLESS BABY BOOMERS DEPENDED ON DEBT INSTEAD OF SAVINGS TO BUY WHAT THEY WANTED WRITES MS RUSSELL AND AS A RESULT SAVINGS LEVELS DROPPED TO HISTORIC LOWS BY THE 1980S IN REALITY BOOMERS HELPED DRIVE DOWN THE SAVINGS RATE IN THE '80S NOT BY BEING SPENDTHRIFT BUT SIMPLY BY BEING NUMEROUS YOUNG ADULTS HAVE ALWAYS HAD LOW SAVINGS RATES SO WHEN THE PROPORTION OF YOUNG ADULTS IN THE POPULATION SWELLED WITH THE AGING OF THE BABY BOOMERS THE OVERALL SAVINGS RATE DECLINED FOR THAT REASON ALONE AS MS RUSSELL HERSELF REPORTS WITHOUT SEEMING TO REALIZE THE IMPLICATIONS OF HER NUMBERS IT'S OLDER AMERICANS WHO HAVE LOST THE THRIFT ETHOS IN RECENT DECADES THE SAVINGS RATE OF AMERICANS AGE 45 OR OLDER FELL BY 7 BETWEEN 1963 AND THE MID'80S WHILE THAT OF HOUSEHOLDS HEADED BY PEOPLE AGE 25 TO 44 FELL BY ONLY 1 THE FACT THAT VOTERPARTICIPATION RATES DECLINED AS THE BOOMERS CAME OF AGE SIMILARLY CAN'T BE BLAMED ON THE GENERATION'S LACK OF CIVIC COMMITMENT VOTING RATES HAVE ALWAYS BEEN LOWER AMONG THE YOUNG THAN THE MIDDLEAGED NOW THAT BOOMERS ARE SWELLING THE RANKS OF THE MIDDLEAGED VOTING RATES ARE GOING UP MS RUSSELL REPEATEDLY CONDEMNS BOOMERS FOR TRAITS THAT ARE EQUALLY IF NOT MOREPRONOUNCED IN OLDER AMERICANS BOOMERS SHE CHARGES ARE THE FIRST GENERATION TO PREFER LEISURE OVER WORK THIS IS A STRANGE CHARGE TO MAKE AGAINST A GENERATION THAT DUE PRIMARILY TO THE INCREASE IN WORKING WOMEN HAS THE HIGHEST LABORFORCEPARTICIPATION LEVELS EVER RECORDED IF ANY GENERATION PREFERS LEISURE TO WORK IN OUR TIMES IT MUST BE THE WORLD WAR II GENERATION THE MEMBERS OF WHICH RETIRED EARLIER AND ARE NOW LIVING LONGER AT GREATER PUBLIC EXPENSE THAN ANY GENERATION IN HISTORY BOOMERS CAN'T EVEN TAKE CREDIT FOR BEING THE GENERATION MOST AFFECTED BY THE SEXUAL REVOLUTION OR THE DIVORCE EPIDEMIC OF THE LATE 20TH CENTURY THAT DISTINCTION BELONGS TO THE SOCALLED SILENT GENERATION OF WOODY ALLEN GARY HART AND GLORIA STEINEM IT IS ACTUALLY THIS GROUP BORN BETWEEN THE MID'30S AND 1942 THAT HAS EXPERIENCED THE LARGEST INCREASE IN DIVORCE OF ANY AGE BRACKET FROM THE '50S TO THE '70S THIS SAME GENERATION REPORTED THE STEEPEST INCREASE OF ANY GROUP IN THEIR FREQUENCY OF SEXUAL INTERCOURSE AS TODAY'S TEENAGERS KNOW ALL TOO WELL BOOMERS HAVE ACTUALLY TENDED TO BE RATHER PURITANICAL IN MIDDLE AGE MS RUSSELL BELIEVES THE BOOMERS ARE INCAPABLE OF ANY TRUE MORAL MATURITY OR WISDOM SHE PREDICTS THEY WILL BECOME INCREASINGLY INTERESTED IN SPIRITUAL ISSUES AS THEY CONFRONT THE DISAPPOINTMENTS OF AGE BUT EXPECTS THAT IT ALL WILL AMOUNT TO A MERE RELIGION OF INDIVIDUALISM PERHAPS BUT THAT'S WHAT A LOT OF PEOPLE SAID AT THE TIME ABOUT THE REFORMATION HISTORICALLY REBELLIOUS AND SELFCENTERED GENERATIONS LIKE THE BABY BOOMERS HOWEVER MUCH RESENTED IN THEIR YOUNGER YEARS HAVE TENDED TO AGE WELL AND TO BE APPRECIATED EVENTUALLY FOR THEIR WISDOM THE MEMBERS OF THE TRANSCENDENTAL GENERATION OF WALT WHITMAN AND SUSAN B ANTHONY FOR EXAMPLE WALLOWED IN ROMANTIC EGOISM AND STRIDENT SELFLIBERATION DURING THEIR EARLY YEARS BUT AS ELDERS THEY WERE REVERED FOR THEIR SAGACITY THE BOOMERS MAY YET EARN THE RESPECT OF THE YOUNG IN WAYS THAT TODAY'S BUSY ACQUISITIVE SENIORS NEVER COULD FOR EXAMPLE BY SETTLING FOR MUCHREDUCED OLDAGE ENTITLEMENTS IN ORDER TO AVOID ENCUMBERING THE FUTURE EVEN NARCISSISTS CAN CHANGE MR LONGMAN AUTHOR OF BORN TO PAY THE NEW POLITICS OF AGING IS WRITING A BOOK ABOUT ENTITLEMENTS 9310050089 931005 QUARTERLY MUTUAL FUNDS REVIEW TOPPERFORMING FUND MANAGERS DIFFER WIDELY IN THEIR STOCK PICKS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT'S EVERY MUTUAL FUND MANAGER FOR HIMSELF THE LEADING FUND MANAGERS IN FOUR DIFFERENT TIME PERIODS ARE PICKING RADICALLY DIFFERENT STOCKS CGM CAPITAL DEVELOPMENT IS COUNTING ON ECONOMYDEPENDENT STOCKS RIGHT HERE IN THE US TO MAINTAIN THE UPSWING THAT PROPELLED IT TO THE TOP OF THE 10YEAR RANKINGS HAVING SOLD SOME TECHNOLOGY HIGHFLIERS CGM NOW IS HEAVILY INVESTED IN FINANCIAL AND HOMEBUILDING STOCKS BUT TWENTIETH CENTURY ULTRA INVESTORS WHICH RACKED UP THE BEST FIVEYEAR PERFORMANCE THANKS IN PART TO ITS TECHNOLOGY HOLDINGS IS STARTING TO HOLD MORE STOCKS OVERSEAS LEXINGTON STRATEGIC INVESTMENTS A FUND INVESTED IN SMALL SOUTH AFRICAN MINING COMPANIES CLUNG TO ITS STATUS AS THE BEST ONEYEAR PERFORMER FOR THE SECOND CONSECUTIVE QUARTER DESPITE THE RECENT SLIDE IN GOLD PRICES PROGRESSIVE AGGRESSIVE GROWTH RANKED AS THE BEST PERFORMER FOR THE THIRD QUARTER WITH A DIVERSE GRAB BAG OF STOCKS G KENNETH HEEBNER MANAGER OF CGM CAPITAL DEVELOPMENT IN BOSTON IS A BIG BELIEVER IN THE US ECONOMY I AM VERY BULLISH ON CYCLICAL STOCKS MR HEEBNER SAYS I AM CONFIDENT THE ECONOMY IS GOING TO GROW AND INFLATION WILL REMAIN LOW HE SAYS THE US RECOVERY CAN EXTEND FOR SEVERAL YEARS AND WELLPOSITIONED CYCLICAL STOCKS CAN SHOW GOOD EARNINGS GAINS MR HEEBNER ISN'T TEMPTED TO LOOK OVERSEAS LIKE SO MANY OTHER FUND MANAGERS THESE DAYS I DON'T SEE ANY REASON TO JUMP INTO FOREIGN CULTURES THAT I DON'T KNOW ANYTHING ABOUT HE SAYS I'LL WAIT UNTIL THERE IS MORE BROKERAGE INFORMATION OR MORE AMERICAN DEPOSITARY RECEIPTS IN THE US THERE'S ENOUGH GOING ON IN THIS COUNTRY RIGHT NOW TO GENERATE A COMPETITIVE PERFORMANCE MR HEEBNER WHO HAS RUN CGM CAPITAL DEVELOPMENT SINCE 1976 IS WIDELY CONSIDERED ONE OF THE BEST STOCK PICKERS ON WALL STREET BUT BUYING THE RIGHT STOCKS IS ONLY PART OF HIS SUCCESS HE KNOWS WHEN TO SELL IF THINGS LOOK MURKY I GET OUT HE SAYS MR HEEBNER IS KNOWN FOR GOOD TIMING ON PHILIP MORRIS HAVING SOLD THE STOCK MORE THAN A YEAR AGO BEFORE ITS PLUNGE HE RECENTLY SOLD CISCO SYSTEMS BECAUSE THERE'S INCREASING TALK ABOUT NEW TECHNOLOGY POSSIBLY INVADING THE COMPANY'S REALM THE COMPUTER NETWORKING INDUSTRY THE MINUTE I HEAR THAT THE CONDITIONS OF THE INDUSTRY MIGHT CHANGE I THINK THERE COULD BE DANGER OF COMPETITION HE SAYS I'M NOT SAYING I KNOW WHAT IS GOING TO HAPPEN BUT I DON'T SEE ANY REASON TO STAY AROUND TO SEE ITS GROWTH RATE DROP FROM 40 A YEAR MR HEEBNER PLACES HUGE BETS ON A SMALL NUMBER OF COMPANIES THE FUND SPREADS ITS ASSETS OF ABOUT 490 MILLION AMONG 27 STOCKS HE SAYS 15 OF THE PORTFOLIO NOW IS INVESTED IN HOMEBUILDING COMPANIES SUCH AS STANDARD PACIFIC LENNAR AND HOVNANIAN ENTERPRISES AUTOMOBILE STOCKS FORD MOTOR AND CHRYSLER MAKE UP 12 OF THE FUND IT ALSO HOLDS LARGE POSITIONS IN UNITED AIRLINES' PARENT UAL CORP AND WHEELINGPITTSBURGH THE LARGEST PORTION OF THE FUND 22 IS IN BANKS AND SAVINGS AND LOANS AMONG HIS BANK HOLDINGS INCLUDE FIFTH THIRD BANCORP I SHIFT THE PORTFOLIO TO WHEREVER I THINK THE GROWTH IS GOING TO BE HE SAYS BUT HE SAYS HE'S LEERY OF THE SHARES MANY PEOPLE ARE CALLING GROWTH STOCKS NOW BECAUSE VALUATIONS ARE TOO EXPENSIVE AND SHARE PRICES FULLY REFLECT GROWTH POTENTIAL CGM CAPITAL DEVELOPMENT IS CLOSED TO NEW INVESTORS BUT BESIDES CGM WHICH HAD AN 18 RETURN FOR THE FIRST NINE MONTHS THIS YEAR MR HEEBNER ALSO MANAGES A FUND THAT INVESTS IN BOTH STOCKS AND BONDS CALLED CGM MUTUAL FUND WHICH IS A NOLOAD FUND WITH MANAGEMENT EXPENSES OF LESS THAN 1 AS THE US STOCK MARKET LOOKS EVER MORE EXPENSIVE THE FIVEYEAR WINNER AMONG FUNDS TWENTIETH CENTURY ULTRA INVESTORS IS DIVERTING SOME OF ITS CASH ABROAD JAMES E STOWERS III HEADS THE TEAM THAT RUNS THE THREE LARGEST TWENTIETH CENTURY FUNDS SELECT ULTRA AND GROWTH IN KANSAS CITY MO KNOWN AS A GROWTH STOCK MANAGER MR STOWERS LOOKS FOR COMPANIES WITH ACCELERATING EARNINGS HE DOESN'T WORRY MUCH ABOUT A STOCK'S PRICE/EARNINGS RATIO THAT WIDELY WATCHED YARDSTICK OF THE STOCK PRICE DIVIDED BY PERSHARE EARNINGS IF THE COMPANY IS GROWING AT TRIPLEDIGIT NUMBERS WHICH IS WHAT WE LIKE TO SEE THEN THE P/E ISN'T IMPORTANT HE SAYS THE STOCK MARKET HAS GROWN MORE EXPENSIVE IN THE PAST SIX MONTHS MR STOWERS ACKNOWLEDGES IT'S A CHALLENGE TO PUT THE MONEY TO WORK IN NAMES AT REASONABLE PRICES HE SAYS WE'RE GOING TO HAVE TO BUY BIGGER AND BIGGER POSITIONS IN STOCKS AND WE ARE LOOKING AT FOREIGN STOCKS MR STOWERS SAYS THE ULTRA FUND NOW IS 18 IN FOREIGN STOCKS FROM SEVEN DIFFERENT COUNTRIES A YEAR AGO STOCKS FROM OVERSEAS MADE UP ONLY ABOUT 5 OF THE FUND TWENTIETH CENTURY ULTRA'S MANAGEMENT TEAM INVESTS THE FUND'S 8 BILLION OF ASSETS IN ABOUT 90 STOCKS WITH A MEDIAN MARKET VALUE OF ABOUT 16 BILLION THE FUND HAS DONE WELL RECENTLY DUE TO BIG GAINS IN COMPUTER TECHNOLOGY STOCKS SUCH AS EMC CORP SYNOPTICS COMMUNICATIONS AND ORACLE MR STOWERS SAYS HE ADDS THAT THE FUND PARTICIPATED IN ABOUT 20 INITIAL PUBLIC OFFERINGS THIS YEAR INCLUDING SUCH HIGHFLIERS AS NETMANAGE A NETWORKING COMPANY AND ALDILA A MAKER OF GRAPHITE GOLF SHAFTS WITHOUT MENTIONING SPECIFIC NAMES MR STOWERS SAID THERE IS A LOT OF PROMISE IN TELECOMMUNICATIONS AND WIRELESS STOCKS THE INFRASTRUCTURE IS SO YOUNG AND RIPE FOR GROWTH THERE ARE ALSO HUGE PROSPECTS FOR TELECOMMUNICATIONS COMPANIES OVERSEAS THE FUND IS A NOLOAD FUND WITH A 1 ANNUAL MANAGEMENT FEE IN THE FIRST NINE MONTHS OF THE YEAR ITS TOTAL RETURN WAS 256 LEXINGTON STRATEGIC INVESTMENTS HAS BEEN RIDING OUT THE UPS AND DOWNS OF GOLD PRICES AND IS CURRENTLY ON TOP THE BIG GAINS AT LEXINGTON STRATEGIC INVESTMENTS WHICH FOR THE PAST 10 YEARS WAS ONE OF THE WORSTPERFORMING MUTUAL FUNDS AROUND CAME WITH THIS YEAR'S BOUNCE IN GOLD PRICES THE FUND DIDN'T DO WELL THIS QUARTER WITH THE DROP IN GOLD PRICES BUT ITS YEARTODATE GAINS MANAGED TO HOLD ON THE FUND FELL 109 IN THE THIRD QUARTER BUT HAS A GAIN OF 1662 FOR THE NINE MONTHS THE SOUTH AFRICAN GOLD MARKET HASN'T PLAYED ITSELF OUT YET SAYS CAESAR BRYAN THE FUND'S MANAGER SINCE DECEMBER 1991 THIS WASN'T A GREAT QUARTER FOR GOLD AND IT GOT BEATEN UP A LITTLE BIT BUT IT FOUND SOME STABILITY LATE IN THE SUMMER GOLD PRICES DROPPED FROM A HIGH OF 409 AN OUNCE TO AS LOW AS 3415 AN OUNCE AND ARE NOW HOVERING AT ABOUT 353 AN OUNCE SOUTH AFRICA'S RECENT CHANGES IN POLITICAL CLIMATE AND THE PROSPECT OF A LIFTING OF SANCTIONS AGAINST THE COUNTRY COULD BOOST THE COUNTRY'S OVERALL INVESTMENT ENVIRONMENT NELSON MANDELA SHOULD LESSEN THE POLITICAL RISKS OF INVESTING IN SOUTH AFRICA MR BRYAN SAYS THE FUND IS INVESTED IN SMALL SOUTH AFRICAN MINING COMPANIES AND MR BRYAN SAYS HE IS STAYING WITH THE SAME STOCKS INCLUDING WESTERN AREAS GOLD MINING KINROSS MINES AND RANDFONTEIN ESTATES GOLD MINING LEXINGTON MANAGEMENT CORP TOOK OVER THE MANAGEMENT OF LEXINGTON STRATEGIC INVESTMENTS IN 1992 AFTER THE SECURITIES AND EXCHANGE COMMISSION DISQUALIFIED THE PRIOR INVESTMENT ADVISER STRATEGIC MANAGEMENT INC FROM RUNNING THE FUND CITING VIOLATIONS OF SECURITIES REGULATIONS AND BREACH OF FIDUCIARY DUTY THE FUND CARRIES A SALES CHARGE OR LOAD OF AS MUCH AS 575 THE FUND'S OPERATING EXPENSES WERE A HIGH 408 OF THE FUND'S ASSETS AT THE END OF 1992 WHEN THE FUND HAD 86 MILLION IN ASSETS BUT EXPENSES AS A PERCENTAGE OF ASSETS SHOULD DECLINE WITH THE RAPID GROWTH OF THE FUND SINCE THEN IT CURRENTLY HAS 50 MILLION IN ASSETS THERE HAVE BEEN A LOT OF CHANGES AT THE PROGRESSIVE AGGRESSIVE GROWTH PORTFOLIO AND THERE ARE MORE TO COME JAMES LAMPSON TOOK OVER MANAGING THE DENVERBASED FUND IN AUGUST 1992 AND FOUND HIMSELF CLEANING UP WHAT WAS LEFT BEHIND HE SAYS MR LAMPSON HAS WORKED FOR 23 YEARS AS A BROKER AND CURRENTLY STILL DOES AT COHIG & ASSOCIATES IN ENGLEWOOD COLO PROGRESSIVE AGGRESSIVE GROWTH IS UP 1982 FOR THE PAST THREE QUARTERS BUT BEFORE MR LAMPSON STARTED BUYING HE HAD TO DO SOME HOUSEKEEPING I HAD TO GET OUT OF SOME ILLIQUID POSITIONS AND SELL OFF STOCKS THAT HAD DROPPED INTO THE PINK SHEETS HE SAYS THAT'S HOW UGLY IT WAS DIAGNOSTEK WHICH SELLS PRESCRIPTION DRUGS BY MAIL HAS BEEN A BIG WINNER FOR THE FUND AT THE BEGINNING OF THE SUMMER MR LAMPSON BOUGHT THE STOCK AT 750 AND IT TRADED LATE YESTERDAY AT 15125 HE ALSO LIKES AIRSENSORS WHICH HE BOUGHT AT 5 AND WHICH TRADED LATE YESTERDAY AT 1050 AIRSENSORS MAKES ELECTRONIC FUEL INJECTION SYSTEMS MR LAMPSON SAYS HE LOOKS FOR COMPANIES WITH BIG EARNINGS POTENTIAL AND SOME OF HIS SMALLSTOCK HOLDINGS HAVE DOUBLED VERY QUICKLY BUT THE COMPANY DOESN'T HAVE TO BE AN IMMEDIATE EARNINGS GROWTH STORY HE SAYS THE FUND WHICH HAS JUST UNDER 1 MILLION IN ASSETS CURRENTLY CHARGES A LOAD OF 4 AND EXPENSES AS HIGH AS 25 BUT MUCH OF THAT WILL SOON CHANGE SAYS MR LAMPSON WE'VE DONE NO MARKETING WHATSOEVER AND THE EXPENSES ARE OUTRAGEOUS HE SAYS THAT'S ALL GOING TO CHANGE WITH THE NEW MANAGEMENT WE SHOULD BE A NOLOAD FUND GOING FORWARD MR LAMPSON SAYS THE FUND IS IN TRANSITION FROM ITS FORMER DISTRIBUTOR SCHIELD SECURITIES AND IS CURRENTLY BEING DISBRIBUTED BY BECKERMAN & CO 9310050088 931005 CANADA STRIKE DEADLINE SET TORONTO THE CANADIAN AUTO WORKERS UNION SET A STRIKE DEADLINE OF MIDNIGHT OCT 13 FOR NEGOTIATIONS WITH FORD MOTOR CO OF CANADA REGARDING A NEW THREEYEAR LABOR CONTRACT THE UNION HAS ALREADY RATIFIED NEW CONTRACTS WITH THE CANADIAN UNITS OF CHRYSLER CORP AND GENERAL MOTORS CORP WHICH INCLUDE INCREASES IN WAGES PENSIONS AND TIME OFF THE UNION SAID IT WILL SEEK A SIMILAR PACT WITH FORD WITH ADDED PROVISIONS FOR JOB CREATION THE UNION REPRESENTS ABOUT 11000 FORD WORKERS IN CANADA 9310050087 931005 HEARD ON THE STREET KEYCORP SOCIETY MAY SET A TREND IN BANK MERGERS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL GET READY FOR ANOTHER ROUND OF BANK MERGERS BUT DON'T EXPECT TO SEE TAKEOVER TRADERS REAPING BIG PROFITS FROM IT ANY TIME SOON AT LEAST NOT IF THIS WEEK'S STYLE OF BANKING MEGAMERGER CATCHES ON IN THE WAKE OF THE PLANNED ALLIANCE OF KEYCORP AND SOCIETY REGIONAL BANKS FROM COAST TO COAST ARE CONTEMPLATING MERGING WITH BANKS OF EQUAL SIZE A RARITY IN THE BANKING INDUSTRY THE PROBLEM FOR SHAREHOLDERS IS THAT MERGEROFEQUALS TRANSACTIONS DON'T OFTEN BRING A SPEEDY PAYOFF AS OUTRIGHT ACQUISITIONS DO IN SUCH A MERGER EACH BANKING CONCERN'S HOLDERS WOULD GET NEW STOCK IN THE COMBINED COMPANY BY CONTRAST IN AN OUTRIGHT ACQUISITION A BUYER GENERALLY OFFERS A PREMIUM AND THE STOCK OF THE COMPANY BEING ACQUIRED USUALLY JUMPS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY KEYCORP STOCK FELL 1 TO 37 1/2 WHILE SOCIETY WAS UNCHANGED AT 32 1/2 ON NEWS OF THE MERGER PLAN THIS WILL BE SOMETHING OF A LABORATORY SAYS NANCY BUSH AN ANALYST WITH BROWN BROTHERS HARRIMAN SHAREHOLDERS HAVEN'T BEEN WELLSERVED IN PAST MERGERS OF EQUALS THIS IS THE FIRST TIME YOU'VE HAD TWO WELLCAPITALIZED WELLPERFORMING COMPANIES GOING IN MS BUSH DIDN'T CHANGE HER RATINGS ON EITHER STOCK AFTER THE MERGER ANNOUNCEMENT STAYING WITH BUY ON KEYCORP AND NEUTRAL ON SOCIETY BANKERS ARE CLEARLY INTRIGUED THIS WILL CAUSE SOME PEOPLE TO SIT DOWN AND SAY HEY IS THIS SOMETHING WE SHOULD DO SAYS JOHN B MCCOY CHAIRMAN OF ACQUISITIVE GIANT BANC ONE BUT PEOPLE SHOULD REFLECT ON HOW THIS TRANSACTION WORKS AND WHETHER IT REALLY BRINGS VALUE TO THE SHAREHOLDERS OR NOT THAT TAKES TIME TO TELL NOT THAT TAKEOVERSTOCK PLAYERS SHOULD GIVE UP HOPE WHILE THE KEYCORPSOCIETY DEAL MAY SPUR SIMILARLY STRUCTURED TRANSACTIONS IT'S MORE LIKELY THAT BIG BANKS WILL MOVE TO ACQUIRE SMALLER ONES BECAUSE SUCH DEALS ARE SIMPLER IT TAKES A LOT OF CHEMISTRY BETWEEN CEOS AND BOARDS OF DIRECTORS TO MAKE A MERGER OF EQUALS WORK SAYS P MICHAEL BRUMM SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF CINCINNATI'S FIFTH THIRD BANCORP FIFTH THIRD EXPERIENCED CULTURE CLASH CLOSE UP 18 MONTHS AGO WHEN ITS BID FOR CROSSTOWN RIVAL STAR BANC WAS FIERCELY AND PUBLICLY REBUFFED MANY ANALYSTS BELIEVE STAR BANC NOW WITH A NEW CHIEF EXECUTIVE MAY WELL PUT ITSELF UP FOR SALE IN THE NEXT FEW YEARS STAR BANC DECLINED TO COMMENT THE BANKING INDUSTRY IS ENTERING A NEW PHASE OF ACQUISITIONS AND MERGERS ACCORDING TO MR BRUMM WE WENT THROUGH ONE WAVE WHEN PEOPLE PUT TOGETHER REGIONAL BANKS TO FORM SUPERREGIONALS NOW THEY'VE DIGESTED ONE ANOTHER AND THEY'RE OUT AFTER SOME MORE IF ALL GOES AS PLANNED THE KEYCORPSOCIETY TEAM WILL ALTER THE PLAYING FIELD IN THE MIDWEST AND IN MIDATLANTIC STATES THAT'S ESPECIALLY TRUE FOR SEVERAL BIG BANKS THAT HAD HARBORED HOPES OF ACQUIRING ONE OR THE OTHER PNC BANK WHICH HAD ITS EYE ON SOCIETY NOW MAY LOOK AT THE OTHER BIG CLEVELAND BANK NATIONAL CITY OR PERHAPS AT HUNTINGTON BANCSHARES OF COLUMBUS OHIO SAY PEOPLE CLOSE TO THE BANK PNC WON'T COMMENT MOREOVER PNC WHICH IS BASED IN PITTSBURGH IS LIKELY TO CONTINUE PROWLING THE MIDATLANTIC WALL STREET THINKS AMONG POSSIBLE TARGETS ACCORDING TO PEOPLE CLOSE TO THE BANK CORESTATES FINANCIAL AND MERIDIAN BANCORP BOTH IN PHILADELPHIA FIRST FIDELITY BANCORP UJB FINANCIAL AND MIDLANTIC ALL IN NEW JERSEY ONE TARGET OUTSIDE THE REGION COULD BE FLEET FINANCIAL GROUP PROVIDENCE RI BANC ONE WHICH WAS ENAMORED OF KEYCORP WILL CONTINUE LOOKING FOR GOOD BUYS ACROSS THE COUNTRY MR MCCOY THE CHAIRMAN IS QUITE OPEN ABOUT HIS INTENTION TO CONTINUE BUILDING BANC ONE INTO A TRULY NATIONAL POWERHOUSE YOU CAN LIST ANY COMPANY WHICH IS ONETHIRD OF OUR SIZE AND I'D BE WILLING TO TALK TO THEM THE EXECUTIVE SAYS ONE POSSIBLE BANC ONE TARGET SAY ANALYSTS AND THE BANKING COMMUNITY MIGHT BE PITTSBURGH'S INTEGRA FINANCIAL WHICH CLOSED AT 48 1/8 UP 1/4 THE STREET ALSO LOOKS AT BOATMEN'S BANCSHARES AS ANOTHER LONGTERM TAKEOVER PLAY ALTHOUGH THE COMPANY FOR NOW IS PROTECTED BY A MISSOURI LAW THAT EFFECTIVELY BARS OHIO BANKS FROM ACQUIRING BANKS IN THE STATE BANC ONE IS ALSO EXPECTED TO CONTINUE EXPANDING IN THE SOUTHWEST OTHERS TOO ARE LIKELY TO TAKE AN ACTIVE ROLE IN THE MERGER AND ACQUISITION GAME BANKERS AND ANALYSTS SAY FIRST FIDELITY MIGHT BID FOR CORESTATES OR BOSTON'S BAYBANKS OR SHAWMUT NATIONAL IT ALSO MIGHT CONSIDER A MERGER OF EQUALS WITH FLEET ANALYSTS SAY FLEET COULDN'T BE REACHED FOR COMMENT ANOTHER POSSIBLE COMBINATION OF SIMILARSIZED BANKS FLEET AND FIRST UNION ACCORDING TO MS BUSH THE ANALYST BECAUSE BOTH BANKS HAVE INDICATED THEY ARE OPEN TO MERGERS OF EQUALS FOR NOW HOWEVER FIRST UNION IS REINED IN BY A SOUTHEAST BANKING COMPACT LIMITING EXPANSION OUTSIDE THE REGION ANOTHER ACQUISITION TARGET IF THE SOUTHEASTERN COMPACT IS REMOVED ANALYSTS AND BANKERS SAY MIGHT BE BARNETT BANKS OF JACKSONVILLE FLA BARNETT HAD NO COMMENT IN THE MIDWEST MINNEAPOLISBASED FIRST BANK SYSTEM WHICH IS LOOKING EAST IS THE KIND OF MIDSIZE BANK THAT MIGHT CONSIDER A MERGER OF EQUALS SAY ANALYSTS ANY DISCUSSION OF ACQUISITIVE BANKS HAS TO INCLUDE NORWEST A LARGER MINNEAPOLIS BANK WHICH IS SCOURING THE COUNTRY FOR POSSIBLE TARGETS ANOTHER BANK EXPECTED TO BE INVOLVED IN MERGER AND ACQUISITION ACTIVITY FIRST CHICAGO WHOSE CHAIRMAN RICHARD THOMAS LIKE KEYCORP'S VICTOR RILEY JR IS CLOSE TO RETIREMENT WITH NO OBVIOUS SUCCESSOR THE PROBLEM WITH THE CURRENT ENVIRONMENT IS THAT THERE ARE MORE ACQUIRERS THAN TARGETS AND PRICES ARE SKYROCKETING SAYS DENNIS SHEA AN ANALYST WITH MORGAN STANLEY THERE'S AN APPETITE TO GOBBLE NOT TO SELL AND THE SELLER'S EXPECTATIONS HAVE BEEN FUELED BY VERY HIGH PREMIUMS THE PROBLEM IS IT'S VERY HARD TO PAY 275 TIMES BOOK VALUE AND EXPECT TO GET YOUR MONEY BACK MEANWHILE THE KEYCORPSOCIETY PAIRING IS SPARKING DEBATE OVER WHETHER MERGERS OF EQUALS BENEFIT SHAREHOLDERS AS MUCH AS OUTRIGHT ACQUISITIONS ANALYSTS AND BANKERS SAY THAT IF THE TWO COMPANIES HADN'T JOINED FORCES KEYCORP AND SOCIETY PROBABLY EACH WOULD HAVE BEEN TARGETED FOR TAKEOVER BY LARGER BANKS DURING THE NEXT YEAR OR TWO WHEN BIG BANKS ACQUIRE SMALLER ONES AT A FAT PREMIUM AS INCREASINGLY IS THE CASE THESE DAYS SHAREHOLDERS OF THE ACQUIRED COMPANY CAN EXPECT AN IMMEDIATE BOOST IN THE PRICE OF THEIR STOCK FOR SHAREHOLDERS OF THE ACQUIRER THE BENEFITS LIE LARGELY IN LONGTERM COST SAVINGS AND OTHER SYNERGIES WHICH TEND TO SHOW UP LATER IN THE STOCK PRICE IN MERGERS OF EQUALS THE BENEFITS FOR SHAREHOLDERS ARE LONGTERM AND TEND TO HINGE ON WHETHER THE COMPANIES HAVE ENOUGH OVERLAPPING OPERATIONS TO ALLOW COSTSLASHING IN THE CASE OF THE MERGER OF COMERICA AND MANUFACTURERS NATIONAL THE COMBINED COMPANY CONCEDES IT HAS TAKEN LONGER THAN EXPECTED TO EXTRACT COST SAVINGS AND IMPROVE EARNINGS COST SAVINGS CERTAINLY AREN'T THE MOST ATTRACTIVE FEATURE OF THE KEYCORPSOCIETY MERGER WHERE THE COMPANIES EXPECT TO TRIM A MERE 5 IN EXPENSES BECAUSE THEIR OPERATIONS ARE SO DISPARATE HOLDERS HAVE TO HOPE FOR EARNINGS GROWTH FROM COMBINING AREAS OF STRENGTH SUCH AS CLEVELANDBASED SOCIETY'S HEALTHY MUTUALFUND MANAGEMENT BUSINESS WITH THE VAST BRANCH SYSTEM OF KEYCORP OF ALBANY NY BUT A CLASH OF CULTURES WHICH OFTEN MAKES MERGERS OF EQUALS IMPOSSIBLE DOESN'T SEEM TO BE AT HAND HERE KEYCORP WHOSE CHAIRMAN AND CHIEF EXECUTIVE MR RILEY WAS DUE TO RETIRE WITHOUT AN HEIR APPARENT APPEARS TO BE AN IDEAL MATCH FOR SOCIETY WHOSE CHAIRMAN ROBERT GILLESPIE HAS AGGRESSIVE GROWTH PLANS BUT NO INTENTION OF CEDING TOTAL CONTROL TO AN ACQUIRER UNDER THE MERGER AGREEMENT NEITHER MANAGEMENT DOMINATES THE OTHER AND NEITHER PAYS A PREMIUM OTHER RECENT MERGERS OF EQUALS TENDED TO PAIR A HEALTHY BANK WITH AN AILING ONE BUT KEYCORP AND SOCIETY ARE WELL MANAGED AND STRONGLY CAPITALIZED TOGETHER THEY WILL RANK AS THE NATION'S 10TH LARGEST BANK WITH 58 BILLION IN ASSETS AND A 18STATE REALM BASED IN CLEVELAND AND EXPECTED TO BE KNOWN AS KEYCORP THE NEW BANK'S STOCK PERFORMANCE WILL BE CLOSELY WATCHED BY MANY BANKS TOYING WITH THE IDEA OF SIMILAR DEALS HEARD 9310050086 931005 INTERNATIONAL YELTSIN ROUTS HARDLINERS BUT NOT RUSSIA'S PROBLEMS PRESIDENT FACING NEW TASK OF RETAINING CONTROL OVER FRACTURED NATION BY ADI IGNATIUS AND CLAUDIA ROSETT STAFF REPORTERS OF THE WALL STREET JOURNAL MOSCOW RUSSIAN TANKS PUT AN END TO AN ERA OF POLITICAL STALEMATE IN MOSCOW THE STANDOFF BETWEEN PRESIDENT BORIS YELTSIN AND THE RUSSIAN PARLIAMENT THAT HAS EXISTED SINCE THE COLLAPSE OF THE SOVIET UNION IN 1991 WAS WIPED AWAY WHEN THE RUSSIAN ARMY RESPONDED TO MR YELTSIN'S CALL AND ROUTED THE HARDLINE REBELS HOLED UP IN THE PARLIAMENT BUILDING MR YELTSIN CLEARLY WON A BLOODY BUT DECISIVE VICTORY OVER HIS POLITICAL FOES BUT WHAT COMES NEXT MR YELTSIN MAY HAVE CONQUERED A BUILDING AND HE NOW HAS IN CUSTODY HIS PRINCIPAL FOES PARLIAMENTARY CHAIRMAN RUSLAN KHASBULATOV AND VICE PRESIDENT ALEXANDER RUTSKOI BUT IT ISN'T CLEAR WHETHER MR YELTSIN WILL HAVE AS EASY A TIME REGAINING CONTROL OVER THE FRACTURED COUNTRY HAVING ELIMINATED THE LEGISLATURE THE 62YEAROLD MR YELTSIN NOW WILL HAVE TO FOCUS ON MENDING TIES WITH THE REGIONS WHERE HE FACES CONSIDERABLE OPPOSITION A FEW PROVINCIAL LEADERS IMMEDIATELY PROCLAIMED SUPPORT FOR THE ATTACK ON PARLIAMENT BUT MOST RESPONDED MORE CAUTIOUSLY VITALI MUKHA THE OUTSPOKEN GOVERNOR OF NOVOSIBIRSK AND NORMALLY A FIERCE CRITIC OF MR YELTSIN EXCUSED HIMSELF FROM COMMENT COLLEAGUES SAID HE HAD FALLEN ILL TO BE SURE THE ROUT OF PARLIAMENT DOESN'T MEAN THAT DEMOCRACY LIES JUST AROUND THE CORNER AND THERE IS NO REASON TO BELIEVE THAT MR YELTSIN WILL BECOME THE DEMOCRAT THAT HIS SUPPORTERS IN THE WEST WOULD LIKE WHILE ACTING IN THE NAME OF DEMOCRACY MR YELTSIN HAS DISPLAYED A STRAIN OF AUTHORITARIANISM THAT MAKES EVEN SOME OF HIS ALLIES UNCOMFORTABLE MR YELTSIN'S GAMBLE SEPT 21 TO DISSOLVE PARLIAMENT AND CALL FOR NEW ELECTIONS LACKED A CONSTITUTIONAL BASIS THOUGH THE PRESIDENT JUSTIFIED THE MOVE AS THE ONLY WAY TO BREAK RUSSIA'S POLITICAL DEADLOCK AND CREATE NEW DEMOCRATIC INSTITUTIONS BUT SUBSEQUENT STEPS WERE EVEN MORE DISTURBING HE REMOVED THE GOVERNOR OF BRYANSK FOR OPPOSING HIM HE CENSORED MEDIA COVERAGE TO SQUELCH UNFLATTERING ARTICLES AND BROADCASTS ON MONDAY HE SHUT DOWN SEVERAL NEWSPAPERS PARTIAL TO PARLIAMENT AND BANNED SOME POLITICAL ORGANIZATIONS THAT HAVE OPPOSED HIM AND HE CONTINUED A PATTERN OF HARASSING PROMINENT POLITICAL OPPONENTS BY CUTTING THEIR PHONE LINES TAKING AWAY THEIR CARS REMOVING THEIR SECURITY DETAILS THE DEMONS OF DESPOTISM AND DICTATORSHIP STILL LOOM LARGE IN RUSSIA WARNS STEPHEN COHEN A RUSSIA SCHOLAR AT PRINCETON UNIVERSITY THE LAST TIME A PARLIAMENT WAS BURNED IN A FLEDGLING DEMOCRACY WAS THE REICHSTAG IN WEIMAR GERMANY AN OMEN WE SHOULDN'T FORGET MOREOVER MR YELTSIN WAS FORCED TO BRING THE MILITARY INTO THE POLITICAL EQUATION TO RESOLVE THE POWER STRUGGLE THE QUESTION NOW IS HOW DOES HE GET IT OUT MR YELTSIN PRESUMABLY OWES THE ARMY FOR ITS EFFORTS THAT COULD MEAN GUARANTEES OF ENHANCED POLITICAL CLOUT AS WELL AS HANDOUTS ANOTHER UNANSWERED QUESTION IS WHO WILL BE BLAMED FOR THE BLOODSHED IN MOSCOW SINCE THE POLITICAL CRISIS BEGAN NEARLY EVERYONE HAD INSISTED THAT THE CONFLICT MUST BE SOLVED WITHOUT VIOLENCE NO MATTER WHO PREVAILED BUT IN THE PAST TWO DAYS DOZENS OF PEOPLE HAVE BEEN KILLED AND HUNDREDS MORE WOUNDED MANY OF THE CASUALTIES OCCURRED DURING THE ASSAULT ON THE PARLIAMENTARY HEADQUARTERS YESTERDAY WHEN T72 TANKS FIRED SHELLS INTO THE WHITE HOUSE SHATTERING WINDOWS AND SETTING IT ON FIRE THE BURNING PARLIAMENT BUILDING WAS SHOWN REPEATEDLY ON RUSSIAN TELEVISION MR YELTSIN'S FOES BLAME THE PRESIDENT FOR THE BLOODSHED SINCE IT WAS HIS POLITICAL GAMBLE THAT SENT RUSSIA INTO ITS CRISIS IN THE FIRST PLACE FROM THE START MANY PREDICTED THAT MR YELTSIN HAD EMBARKED ON A COURSE THAT WAS SURE TO END IN VIOLENCE THE PRESIDENT AND HIS SUPPORTERS FOR THEIR PART BLAME THE REBEL LEADERS WHO HOLED UP IN THE WHITE HOUSE DISTRIBUTED ARMS TO FOLLOWERS AND BALKED AT EFFORTS TO CONCLUDE A COMPROMISE MR RUTSKOI IN PARTICULAR BEARS SUBSTANTIAL RESPONSIBILITY HE ESCALATED THE STANDOFF TO A VIOLENT STAGE ON SUNDAY WHEN HE CALLED ON FOLLOWERS TO STORM THE MOSCOW MAYOR'S OFFICE AND THE OSTANKINO BROADCASTING CENTER IT APPEARS THAT KEY MILITARY FIGURES ACCEPT MR YELTSIN'S VERSION ELITE TANK AND PARATROOP DIVISIONS RESPONDED QUICKLY TO CALLS TO RESTORE ORDER IN MOSCOW AFTER THE RAMPAGE SUNDAY TROOPS SHOWED NO SIGNS OF HESITATION IN USING FORCE AGAINST THEIR FELLOW RUSSIANS WHO REFUSED TO LEAVE THE WHITE HOUSE WE'RE LOYAL TO YELTSIN SAID A YOUNG OFFICER FROM THE KANTERMIROVSKY TANK DIVISION TWO COMMANDERS IS TOO MUCH THE MOSCOW PUBLIC TOO SEEMED PERSUADED THAT AFTER A TERRIFYING DAY OF VIOLENCE SUNDAY THE YELTSIN ADMINISTRATION WAS JUSTIFIED IN BRINGING OUT BIG GUNS UNLIKE DURING THE FAILED COUP ATTEMPT IN AUGUST 1991 THERE WAS VIRTUALLY NO EVIDENCE OF CITIZENS PLEADING WITH THE SOLDIERS TO HOLD THEIR FIRE WE'RE SICK OF PARLIAMENT SAID ANTON KOLOKOLENKOV A 20YEAROLD STUDENT WHO CAME TO THE EDGE OF THE WHITE HOUSE TO WATCH THE ASSAULT SEVERAL TIMES DURING A CONVERSATION HE DUCKED BEHIND A WALL AS RANDOM GUNFIRE BROKE OUT THE PEOPLE SUPPORT THE SOLDIERS THE ASSAULT ON PARLIAMENT BEGAN EARLY MONDAY TANKS MOVED TOWARD THE WHITE HOUSE FROM SEVERAL DIRECTIONS AND QUICKLY DREW FIRE FROM GUARDS LOYAL TO PARLIAMENT SOON AFTERWARD THE TANKS RETURNED THE FIRE BACKED UP BY AUTOMATIC RIFLE FIRE EVERY ONE OF THE 500ODD WINDOWS ON PARLIAMENT'S FACADE WERE SHOT OUT TANKS ESPECIALLY TARGETED WINDOWS ON THE 13TH FLOOR SITE OF THE REBELS' MILITARY HEADQUARTERS THE CLIMAX OCCURRED LATE IN THE AFTERNOON WHEN HUNDREDS OF PARLIAMENTARY DEPUTIES AND THEIR AIDES WALKED OUT OF THE WHITE HOUSE WAVING THE WHITE FLAG OF SURRENDER SOON THEREAFTER MESSRS RUTSKOI AND KHASBULATOV GAVE THEMSELVES UP APPARENTLY AFTER GETTING ASSURANCES FROM MR YELTSIN THAT THEY WOULDN'T BE HARMED ACCORDING TO AN AIDE TO MR YELTSIN THE PAIR WERE IMMEDIATELY TRANSPORTED TO AN UNDISCLOSED SITE OUTSIDE OF MOSCOW THE AIDE HINTED THAT THE TWO WOULD FACE CRIMINAL CHARGES FOR THEIR PART IN THE CONFLICT AS SOON AS MR YELTSIN SUCCEEDS IN RESTORING ORDER IN MOSCOW HE PROBABLY WILL MOVE FORWARD WITH THE POLITICAL AGENDA HE ENVISIONED IN HIS SEPT 21 DECREE IF HE STICKS TO THE ORIGINAL TIMETABLE THAT WOULD MEAN HOLDING ELECTIONS FOR A NEW LEGISLATURE IN DECEMBER AFTERWARD MR YELTSIN WOULD HELP SHEPHERD THROUGH A NEW CONSTITUTION TO REPLACE THE CURRENT BREZHNEVERA DOCUMENT IN JUNE RUSSIA WOULD HOLD PRESIDENTIAL ELECTIONS THE ELECTIONS SHOULD FAVOR MR YELTSIN HE IS THE ONLY POLITICAL FIGURE WITH A BROAD NATIONAL POWER BASE AND HE TIGHTLY CONTROLS THE MEDIA WHEN MR YELTSIN TRIUMPHED IN AN APRIL 25 REFERENDUM ON HIS LEADERSHIP HE BENEFITED FROM A NATIONAL TELEVISION CAMPAIGN THAT PORTRAYED HIM AS A RESOLUTE LEADER AND A SOLID FAMILY MAN AND THAT VIRTUALLY IGNORED HIS OPPONENTS IT'S HARD TO IMAGINE THAT THE COMING ELECTIONS WILL BE FREE SAYS MR COHEN IF MR YELTSIN CAN REAP A SIGNIFICANT POLITICAL VICTORY FROM HIS MILITARY SUCCESS RUSSIA'S ECONOMIC REFORMS ARE LIKELY TO FLOURISH BY GETTING PARLIAMENT OFF HIS BACK MR YELTSIN WILL HAVE TWO MONTHS TO RULE THE COUNTRY BY HIMSELF IN THE PAST TWO WEEKS WITH PARLIAMENT ISOLATED AIDES TO THE PRESIDENT HAVE BEEN DRAWING UP AMBITIOUS PLANS TO ACCELERATE REFORMS THAT THE CONSERVATIVE LEGISLATURE HAD BLOCKED RECENT DECISIONS INCLUDE BANNING SUBSIDIZED CREDITS TO THE MONOPOLIZED AGRICULTURAL SECTOR RAISING THE CENTRAL BANK'S BENCHMARK LENDING RATE AND ENCOURAGING FOREIGN INVESTMENT FOREIGN INVESTORS ARE LIKELY TO RESPOND FAVORABLY IF MR YELTSIN CAN PUSH FORWARD NEW LAWS AND IF HE CAN GUARANTEE STABILITY AS EVENING FELL ON MONDAY GARY SAZER A NEW YORK LAWYER WAS MEETING WITH FIVE RUSSIAN BUSINESS COLLEAGUES AT THE BAR OF THE METROPOL HOTEL THE EVENTS OF THE LAST TWO WEEKS WILL HAVE A STABILIZING INFLUENCE ON BUSINESS HERE SAID MR SAZER HIS RUSSIAN COLLEAGUES LOOKED UP FROM THEIR YELLOW BUSINESS PADS AND NODDED IN AGREEMENT ON THE OTHER HAND THE ROUT AT THE PARLIAMENT BUILDING MAY MARK A DEATH KNELL FOR RUSSIA'S COMMUNISTS AS A VIABLE POLITICAL ALTERNATIVE DURING THE TWOWEEK POLITICAL CRISIS A GROUP OF MOSTLY ELDERLY PEOPLE NOSTALGIC FOR THE SOVIET ERA REGAINED A SENSE OF POWER THEY RAISED RED FLAGS AND CALLED FOR A RETURN TO THE GLORY DAYS OF THE COMMUNIST PAST ON SUNDAY THEY RULED THE STREETS AS TROOPS LOYAL TO MR YELTSIN ALLOWED CROWDS TO STORM THROUGH THE CITY LARGELY UNHAMPERED YESTERDAY HOWEVER THAT DREAM WAS CRUSHED AND MANY OF THESE ELDERLY COMMUNISTS LAY AMONG THE BODIES KILLED IN THE ASSAULT THE ATTACK MONDAY OFFERED A SENSATIONAL THOUGH DANGEROUS SIDESHOW TO CITIZENS ON THE STREETS HUNDREDS OF RUSSIANS TOOK PLACES ALONG ROOFTOPS JUST ACROSS THE MOSCOW RIVER FROM PARLIAMENT TO WATCH THE TANKS FIRING PEOPLE SEEMED DETACHED FROM THE POLITICAL MEANING OF THE EVENT ON THE STREETS BELOW HUNDREDS OF RUSSIANS STOOD ALONGSIDE THE TANKS JUST 100 YARDS FROM THE WHITE HOUSE THEY SCRAMBLED AWAY AS SNIPERS INSIDE THE BUILDING FIRED BUT THEY SOON SCUTTLED BACK SEEMINGLY OBLIVIOUS TO THE DANGER SERGEI MOZHAYEV STROLLED ALONG THE STREETS NEAR THE BURNING PARLIAMENT WITH HIS WIFE AND HIS PET BOXER I THINK THEY'RE ALL FIGHTING FOR THEIR PORTFOLIOS THEIR FOOD RATIONS AND THEIR DACHAS SAID THE 40YEAROLD STATE WORKER AS GUNFIRE RANG OUT WE DON'T GIVE A DAMN WHAT WE NEED NOW IS A NORMAL LIFE 9310050085 931005 PEPPERAND SALT ESTABLISHED THE NOBEL PEACE PRIZE CAN DISPERSE BAD LUCK LIKE A VAPOR I'D BEEN READING YESTERDAY'S PAPER MONEY CAN BUY HAPPINESS BUT YOU HAVE TO KEEP UP THE PAYMENTS 9310050084 931005 BOMBARDIER UNIT GETS CONTRACT MONTREAL BOMBARDIER INC SAID ITS SHORT BROTHERS PLC UNIT RECEIVED A CONTRACT VALUED AT MORE THAN 100 MILLION TO SUPPLY 20 C23 SHERPA MILITARY TRANSPORT AIRCRAFT TO THE US ARMY NATIONAL GUARD DURING THE NEXT THREE YEARS THE CONTRACT INCLUDES AN OPTION FOR A FURTHER 10 AIRCRAFT WITH A VALUE OF ABOUT 44 MILLION BOMBARDIER IS A MONTREAL TRANSPORTATIONEQUIPMENT MAKER ITS SHORT BROTHERS UNIT IS BASED IN NORTHERN IRELAND 9310050083 931005 LABOR WHAT US WORRY BIG UNIONS' LEADERS OVERLOOK BAD NEWS OPT FOR STATUS QUO BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MANAGEMENT CONSULTANT DEBORAH CORNWALL HAS AN IDEA THAT WOULD SCARE THE LIFE OUT OF AMERICA'S UNION LEADERS STAKE THEIR JOB SECURITY ON THE ABILITY TO ENROLL AND KEEP MEMBERS IN CORPORATE AMERICA THE PAYFORPERFORMANCE CONCEPT ALREADY IS STANDARD EVEN THE FEDERAL GOVERNMENT IS SHIFTING TO PAY INCENTIVES BASED ON PERFORMANCE BUT IN AN EVERCHANGING WORLD THE TOP OF ORGANIZED LABOR REMAINS A STATIC ISLAND TOMORROW AT THE AFLCIO CONVENTION IN SAN FRANCISCO THE FEDERATION'S 750 DELEGATES WILL ELECT AS THEY HAVE DONE SEVEN TIMES BEFORE 73YEAROLD LANE KIRKLAND TO ANOTHER TWOYEAR TERM AS PRESIDENT THEN THE 35 MOSTLY WHITE MOSTLY MALE LARGELY OVER60 MEMBERS OF THE LABOR FEDERATION'S EXECUTIVE COUNCIL WILL CONTINUE THE SAME STATUSQUO LEADERSHIP THAT HAS PRESIDED OVER DWINDLING MEMBERSHIPS IN MOST OF THE 86 MEMBER UNIONS IF THE COUNCIL MEMBERS WERE RUNNING A BUSINESS THEY WOULD HAVE BEEN THROWN OUT BY THE BOARD OF DIRECTORS YEARS AGO SAYS RUTGERS UNIVERSITY PROFESSOR LEO TROY BUT UNLIKE CORPORATIONS UNION LEADERS HAVE NO SHAREHOLDERS TO WHOM THEY ARE RESPONSIBLE NO DIRECTORS TO WATCH OVER THEM AND NO DEMANDING CUSTOMERS TO THROW THEM OVER WHEN THEY DISAPPOINT ON THE NUMBERS SIDE THE BAD NEWS KEEPS ON COMING THE AFLCIO NOW REPRESENTS 11 OF THE US WORK FORCE DOWN A THIRD FROM 164 IN 1975 DESPITE ABSORBING THE 13 MILLIONMEMBER TEAMSTERS UNION SEVERAL YEARS AGO AND AT THIS WEEK'S CONVENTION ONLY 10 OF THE 86 MEMBER UNIONS WILL REPORT MEMBERSHIP GAINS SINCE THE LAST CONVENTION TWO YEARS AGO FOR THEIR PART LABOR OFFICIALS ARGUE THAT THE EXECUTIVE COUNCIL HAS BECOME MORE INCLUSIVE ADDING WOMEN AND MINORITIES THEY NOTE THAT UNION MEMBERS HAVE HELD THEIR OWN IN WAGES AND BENEFITS AND THEY CONTEND THAT MEMBERSHIP LOSSES REFLECT THE DRAMATIC JOB CUTBACKS THAT HAVE DECIMATED SECTORS OF THE US ECONOMY BUT THOSE ARGUMENTS HAVEN'T SAVED TOO MANY CORPORATE CHIEF EXECUTIVE OFFICERS' JOBS INDEED INTERNATIONAL BUSINESS MACHINES CO GENERAL MOTORS CORP AND EASTMAN KODAK CO TO NAME A FEW HAVE SQUEEZED OUT TOP BRASS FOR FAILING TO REACT QUICKLY ENOUGH TO A CHANGING ENVIRONMENT FROM A MANAGEMENT STANDPOINT ANY CEO WHO IS LOSING MARKET SHARE HAS TO ASK WHY SAYS MS CORNWALL MANAGING VICE PRESIDENT OF KORN/FERRY ORGANIZATIONAL CONSULTING IN BOSTON THE SOLUTION SHE AND OTHER ORGANIZATIONAL CONSULTANTS SAY IS TO FLATTEN THE MANAGEMENT STRUCTURE TO GET MORE IDEAS AND ACTION FROM THE PEOPLE FURTHER DOWN THE LADDER STAGNATION OF THE BOSSES IS THE MAIN ENEMY SAYS MORTIMER FEINBERG CHAIRMAN OF BFS PSYCHOLOGICAL ASSOCIATES A NEW YORK CONSULTING FIRM THE PASSING OF THE BATON IS ANATHEMA IN THE UNION MOVEMENT THEY NEED TO ATTRACT YOUNGER WORKERS WHO ARE INSPIRATIONAL THAT'S EASIER SAID THAN DONE DYNAMIC YOUNG LEADERS SUCH AS DENNIS RIVERA THE HEAD OF A NEW YORKBASED HEALTHCARE EMPLOYEES UNION OR RICHARD BENSINGER HEAD OF THE AFLCIO ORGANIZING INSTITUTE WOULD STRUGGLE TO MUSTER ENOUGH SUPPORT TO WIN A PLACE ON THE COUNCIL IN THE MINDS OF MANY LABOR ANALYSTS YOUNGER MEMBERS OF THE UNION MOVEMENT AND EVEN A NUMBER OF COUNCIL MEMBERS MR KIRKLAND IS A SIGNIFICANT PART OF THE PROBLEM WITH THE MOVEMENT'S VISION HE DECLINED REQUESTS TO BE INTERVIEWED FOR THIS ARTICLE A SOFTSPOKEN SOUTH CAROLINIAN WITH AN UNDISGUISED DISDAIN FOR THE MEDIA MR KIRKLAND HAS BEEN A FIXTURE OF THE LABOR BUREAUCRACY SINCE HE GRADUATED FROM GEORGETOWN UNIVERSITY IN 1948 WITH A DEGREE IN FOREIGN RELATIONS WHILE HIS PREDECESSOR GEORGE MEANY WAS A FIERY BACKSLAPPING FORMER PLUMBER MR KIRKLAND WHO COTTONS TO EVENING GAMES OF SCRABBLE IS A VETERAN OF THE MASTERS MATES & PILOTS UNION WHICH REPRESENTS SHIPS' OFFICERS HE BRINGS A MORE CEREBRAL CONSENSUSBUILDING STYLE TO THE FEDERATION BUT THE TRADEOFF IS MR KIRKLAND'S LACK OF VISIBLE FIRE LANE IS NOT AGGRESSIVE IN THE SENSE THAT I WOULD BE LAMENTS WILLIAM BYWATER PRESIDENT OF THE ELECTRONIC WORKERS UNION WHO BACKS MR KIRKLAND DESPITE PRIOR RUNINS HE'S A BRAINY GUY BUT HE HAS NO CHARISMA DOES IT MAKE A DIFFERENCE TO THE LABOR UNIONS HE LEADS UNHAPPY UNION OFFICIALS GROUSE THAT THE MOVEMENT NEEDS TO BETTER INFORM THE UNORGANIZED TEACHERS HOSPITAL WORKERS TRUCKERS AND OTHER WORKERS OF THE BENEFITS THEY ARE MISSING LABOR OFFICIALS POINT TO THE NEW YORK CITY LABOR DAY PARADE AT WHICH MR KIRKLAND WAS GRAND MARSHAL HE SHUNNED ANY KIND OF FORMAL PRESS EVENT PASSING UP AN OPPORTUNITY TO AIR LABOR'S AGENDA PUBLICRELATIONS EXECUTIVE VICTOR KAMBER WHO DOES WORK FOR UNIONS SAYS THAT ON THE WHOLE THE AFLCIO HAS MADE NO DIFFERENCE IN THE COLLECTIVE IMPRESSION OF THE AMERICAN PUBLIC OF LABOR IN THE 90S OR THE 80S OR THE 70S IT'S MORE THAN JUST IMAGE UNION OFFICIALS ALSO WONDER WHY TOP LABOR BOSSES DON'T PUSH MERGERS TO CREATE LARGER MORE POWERFUL BLOCKS AT THE SAME TIME THE UNIONS' RANK AND FILE OFTEN WOMEN AND MINORITIES HAVE TO WONDER WHY THEY SEE FEW PEOPLE LIKE THEM OCCUPYING THE TOP TIERS AMONG THE LARGE UNIONS IT'S UNLIKELY YOU'D GET A BLACK ELECTED AS PRESIDENT KNOWING WHO'S IN SUCCESSION MR BYWATER CONCEDES EVEN SOME LABOR LEADERS LAMENT THE LACK OF AGGRESSIVE ACTION BY THE UNION MOVEMENT TO PRESS FRESH IDEAS THE WAY FOR LABOR TO REGAIN THE EDGE IS TO BE PROACTIVE TO PROPOSE CHANGES ARGUES JOHN STURDIVANT PRESIDENT OF THE AMERICAN FEDERATION OF GOVERNMENT EMPLOYEES UNIONS NOW ARE IN A POSITION TO NOT ONLY POINT OUT PROBLEMS BUT TO COME UP WITH SOLUTIONS BUT THE CURRENT TEAM MAY NOT BE UP TO THE TASK OUTSIDERS SAY FROM TIME TO TIME THERE HAVE BEEN CHARISMATIC LEADERS IN THE LABOR MOVEMENT SAYS MCGILL UNIVERSITY PROFESSOR JAY CONGER AN EXPERT IN ORGANIZATION BEHAVIOR NOW YOU DON'T SEE CHARACTERS LIKE THAT UNION OFFICIALS SAY 12 YEARS OF WHITE HOUSE OCCUPANTS HOSTILE TO ORGANIZED LABOR FIERCE COMPETITION FOR US COMPANIES FROM OVERSEAS AND WOEFULLY OUTDATED FEDERAL LABOR LAWS ALL HAVE HURT UNION EFFORTS BACKERS OF MR KIRKLAND NOTE THAT HE BROUGHT THE MINE WORKERS AND TEAMSTERS UNIONS INTO THE AFLCIO AND EXPANDED THE EXECUTIVE COUNCIL TO INCLUDE MORE WOMEN AND MINORITIES THERE ARE THREE WOMEN ONE OF WHOM IS BLACK AND ONE HISPANIC AND TWO BLACK MEN MOREOVER SUPPORTERS NOTE THAT MR KIRKLAND WHO HAS BEEN ACCUSED OF SPENDING TOO MUCH TIME ON INTERNATIONAL ISSUES HAS BEGUN REDIRECTING HIS ATTENTIONS TO SUPPORTING HEALTHCARE REFORM AND OPPOSING THE NORTH AMERICAN FREE TRADE AGREEMENT TWO AREAS IN WHICH THE UNIONS ARE FLEXING THEIR POLITICAL AND FINANCIAL MUSCLE STILL MANAGEMENT CONSULTANTS AND OTHERS CONTEND THAT THE AFLCIO COUNCIL AND MR KIRKLAND HAVE IGNORED THE REAL PROBLEMS BUT NOBODY EXPECTS THEM TO GIVE UP POWER IF AN EXECUTIVE RETIRES HE CAN GO ON CORPORATE BOARDS OR HAS ENOUGH MONEY TO RETIRE NOTES MR FEINBERG BUT THE LABOR GUY WHAT ELSE IS HE GOING TO DO 9310050082 931005 SMALL STOCK FOCUS TECHNOLOGY ISSUES HELP PROPEL INDEXES TO RECORD LEVELS IN CAUTIOUS TRADING BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK STRONG TECHNOLOGY ISSUES AND AN EASING OF THE RUSSIAN CRISIS HELPED SMALLCOMPANY STOCK INDEXES CLIMB TO NEW HIGHS IN A CAUTIOUS SESSION RUSSIAN HARDLINERS WHO HAD OCCUPIED THE PARLIAMENT BUILDING SURRENDERED AFTER A NEARLY 10HOUR BATTLE THAT ENDED IN THE WORST POLITICAL VIOLENCE IN MOSCOW SINCE THE 1917 BOLSHEVIK REVOLUTION TRADERS SAID RECENT CONVENTIONAL WISDOM THAT HAS DEEMED SMALL STOCKS AS HOTTER THAN LARGER ISSUES CONTRIBUTED TO UPWARD MOVES YESTERDAY AMONG SMALLERCAPITALIZED COMPANIES BOTH THE RUSSELL 2000 AND THE NASDAQ COMPOSITE INDEXES SET CLOSING HIGHS THE RUSSELL 2000 WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION ISSUES TRADED OVERTHECOUNTER AND ON THE MAJOR EXCHANGES SAILED TO 25355 ITS SEVENTH CONSECUTIVE RECORD HIGH UP 055 POINT OR 022 THE NASDAQ COMPOSITE INDEX ALSO SET A RECORD RISING 161 POINTS OR 021 TO FINISH AT 76484 THAT TOPPED THE PREVIOUS HIGH OF 76366 SET LAST TUESDAY ADVANCING NASDAQ ISSUES EDGED OUT DECLINERS 1488 TO 1428 NASDAQ NATIONAL MARKET VOLUME SLOWED TO 236827398 SHARES FROM 244615900 SHARES FRIDAY HESITATION WAS THE WATCHWORD YESTERDAY OBSERVERS SAID ASIDE FROM THE MOSCOW STANDOFF INVESTORS ALSO ARE GRAPPLING WITH IMPENDING CORPORATE EARNINGS NEWS AND RELATIVELY FLAT BOND PRICES TAKEN ALL TOGETHER I WAS BORED SILLY TODAY SAID CHRIS MCLELLAN MANAGING DIRECTOR IN CHARGE OF TRADING AT ROBERTSON STEPHENS & CO THERE ARE AN AWFUL LOT OF PEOPLE WHO COMMITTED MONEY LAST QUARTER AND THEY SEE NO STRONG REASON TO CHANGE THEIR MINDS NOW THIS WILL CONTINUE AS LONG AS WE HAVE A BASICALLY FLAT BOND MARKET AND NO FIREWORKS ON THE EARNINGS FRONT HEDI REYNOLDS MANAGING DIRECTOR OF NASDAQ TRADING AT MORGAN KEEGAN & CO AGREED I THINK THERE ARE A LOT OF PEOPLE HOLDING BACK THERE JUST ISN'T ANY AGGRESSIVE BUYING RIGHT NOW BUT TRADERS AGREED THAT WHAT LITTLE BUYING THERE WAS TOOK PLACE IN THE TECHNOLOGY GROUP 3DO REDWOOD CITY CALIF WAS UP 2 1/2 TO 36 1/2 THE COMPANY SAID IT HAS BEEN CHOSEN TO PROVIDE INTERACTIVE TECHNOLOGY FOR U S WEST'S PLANNED TRIAL OF INTERACTIVE COMMUNICATIONS TERMS WEREN'T DISCLOSED WASHINGTON BANCORP JUMPED 3 5/8 OR 48 TO 11 1/8 ON NEWS THAT THE HOBOKEN NJ SAVINGS BANK IS IN PRELIMINARY MERGER TALKS WITH AN UNIDENTIFIED BUYER ELSEWHERE NEWBRIDGE NETWORKS ADDED 1 7/8 TO 69 1/8 JABIL CIRCUIT GAINED 3/4 TO 8 3/4 AND TECHNOLOGY SOLUTIONS INC ROSE 3/4 TO 9 MEGAHERTZ LOST 2 1/4 TO 15 3/4 AFTER SAYING IT CUT PRICES ON ITS PERSONAL COMPUTER MEMORY CARD INTERNATIONAL ASSOCIATION MODEMS BY AS MUCH AS 38 THE COMPANY SAID THE MOVE IS DESIGNED TO STRENGTHEN ITS POSITION AS A LEADING SUPPLIER IN THE MOBILE DATA/FAX MODEM MARKETPLACE ATCHISON CASTING A NEW ISSUE CLIMBED 94 TO CLOSE AT 13 1/8 ABOVE ITS OFFERING PRICE OF 12 A SHARE THE COMPANY MAKES LARGE STEEL CASTINGS AND LOCOMOTIVE UNDERCARRIAGES FRITZ CLIMBED 1 1/4 TO 30 DONNA CALDER MANAGER OF MANHATTAN CAPITAL PARTNERS A PRIVATE EQUITY INVESTMENT PARTNERSHIP SAID IN BARRON'S MAGAZINE THAT FRITZ A SAN FRANCISCO FREIGHTFORWARDING COMPANY WAS ONE OF HER LARGEST POSITIONS SEVERAL RATING CHANGES MOVED SMALLCOMPANY PRICES KIDDER PEABODY & CO ANALYST MICHAEL EXSTEIN DOWNGRADED WABAN NYSE TO UNDERPERFORM FROM NEUTRAL SENDING TOWN 1 3/8 TO 12 7/8 THE ANALYST WHO ALSO CUT HIS FISCAL 1994 EARNINGS ESTIMATE SAID THE NATICK MASS COMPANY'S BJ WHOLESALE CLUB IS HAVING A DIFFICULT TIME SOFTWARE TOOLWORKS ROSE 1 3/8 TO 14 5/8 FOLLOWING AN INITIAL BUY RATING BY SALOMON BROTHERS SALOMON SAYS IN A RESEARCH SUMMARY THAT THE NOVATO CALIF COMPANY IS IN THE MIDST OF A SUCCESSFUL TURNAROUND ITS LEGAL ENTANGLEMENTS ARE OVER AND ITS NEW MANAGEMENT TEAM IS IN PLACE COMMUNICATIONS ISSUES HAD A GOOD DAY METRICOM LOS GATOS CALIF CLIMBED 4 1/2 TO 20 1/4 THE COMPANY SAID IT SOLD 175 MILLION OF ITS COMMON STOCK AND STOCK WARRANTS TO VULCAN VENTURES INC AN AFFILIATE OF PAUL ALLEN A SEATTLE INVESTOR AND COFOUNDER OF MICROSOFT CORP METRICOM ALSO SAID IT HAS DEVELOPED A HIGHPERFORMANCE WIRELESS DATA COMMUNICATIONS NETWORK THAT CAN BE PROVIDED TO CUSTOMERS AT A LOWER COST THAN OTHER SYSTEMS VALUEADDED COMMUNICATIONS DALLAS ROSE 1/2 TO 5 1/2 ON HEAVY VOLUME OF 288700 SHARES THE COMPANY SAID THAT TWO PENDING ACQUISITIONS AND A NEW CONTRACT WITH NATIONAL OPERATOR SERVICES INC WILL INCREASE ITS ANNUALIZED REVENUE BY MORE THAN 30 MILLION CASINO MAGIC ROSE 1 3/4 TO 20 THE COMPANY SAID FRIDAY THAT IT INTENDS TO FORM A JOINT VENTURE WITH CAESARS WORLD TO PLAN DEVELOP AND OPERATE A DOCKSIDE RIVERBOAT GAMING CASINO AND ENTERTAINMENT COMPLEX 9310050081 931005 LAW SUPREME COURT SETTING 199394 DOCKET IS TO RULE ON RETROACTIVE TAX CHANGES BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT AGREED TO CONSIDER WHETHER THE GOVERNMENT CAN MAKE RETROACTIVE CHANGES IN THE TAX CODE THE CASE WAS ONE OF NINE THE JUSTICES ADDED TO THEIR STILL RELATIVELY LIGHT DOCKET AS THE COURT RECONVENED FOR ITS 199394 TERM THEY DECLINED TO HEAR NEARLY 1500 OTHERS AT ISSUE IS A FEDERAL ESTATETAX CHANGE THAT WAS ENACTED IN DECEMBER 1987 BUT MADE RETROACTIVE TO OCTOBER 1986 SINCE THE 1930S THE SUPREME COURT AND FEDERAL APPEALS COURTS HAVE REPEATEDLY REJECTED CONSTITUTIONAL CHALLENGES TO RETROACTIVE TAX PROVISIONS BUT THE FEDERAL APPEALS COURT IN SAN FRANCISCO LAST YEAR SAID THE RETROACTIVE APPLICATION OF THE AMENDMENT WAS UNCONSTITUTIONAL IF THAT UNUSUAL RULING IS UPHELD IT COULD ENCOURAGE LEGAL CHALLENGES TO OTHER LAWS MAKING RETROACTIVE ADJUSTMENTS OF THE TAX CODE CONGRESS MADE ONE SUCH CHANGE IN AUGUST WHEN AT PRESIDENT CLINTON'S URGING LAWMAKERS INCREASED INCOME TAX RATES FOR WEALTHY INDIVIDUALS RETROACTIVELY TO JAN 1 SOME REPUBLICANS ATTACKED THIS APPROACH AS UNFAIR AND UNCONSTITUTIONAL AND INTRODUCED LEGISLATION TO REPEAL THE RETROACTIVE PROVISION REPEAL COULD COST THE GOVERNMENT AS MUCH AS 12 BILLION IN LOST REVENUE THE ESTATE TAX CASE INVOLVES A LIMITATION CONGRESS PLACED ON AN ESTATETAX DEDUCTION ALLOWED FOR THE SALE OF STOCK IN A COMPANY TO THAT COMPANY'S EMPLOYEESTOCK OWNERSHIP PLAN AS THE LAW WAS ORIGINALLY ENACTED AN EXECUTOR COULD PURCHASE SUCH STOCK AFTER THE TAXPAYER'S DEATH SELL IT TO THE ESOP AND TAKE AN ESTATETAX DEDUCTION FOR HALF THE VALUE OF THE STOCK SOLD IN DECEMBER 1987 CONGRESS RESTRICTED THE BENEFIT SO IT APPLIED ONLY TO ESTATES OF PEOPLE WHO HAD BOUGHT THE STOCK BEFORE THEIR DEATHS THAT CUT THE PROJECTED REVENUE LOSS FOR THE GOVERNMENT FROM 7 BILLION TO 300 MILLION SEPARATELY THE SUPREME COURT AGREED TO DECIDE WHAT CONDITIONS STATES MAY IMPOSE ON HYDROELECTRIC PLANTS WHEN GRANTING THEM LICENSES UNDER THE FEDERAL CLEAN WATER ACT SPECIFICALLY THE JUSTICES WILL HEAR A CASE INVOLVING EFFORTS BY WASHINGTON STATE TO FORCE A PROPOSED FACILITY IN TACOMA TO TAKE STEPS TO PROTECT FISH IN THE DOSEWALLIPS RIVER THE STATE'S TOP COURT UPHELD THE REGULATION CITING LANGUAGE IN THE CLEAN WATER ACT PERMITTING STATES TO IMPOSE ANY APPROPRIATE REQUIREMENT OF STATE LAW IN OTHER ACTION YESTERDAY THE JUSTICES AGREED TO CLARIFY WHEN STAFF NURSES SHOULD BE CONSIDERED SUPERVISORS WHO AREN'T PROTECTED BY FEDERAL LABOR LAW IF THE HIGH COURT WORDS ITS DECISION BROADLY THE CASE COULD AFFECT WORKERS IN FIELDS OTHER THAN NURSING NATIONAL LABOR RELATIONS BOARD VS HEALTH CARE & RETIREMENT CORP REFUSED TO CONSIDER APPEALS FROM LOWERCOURT RULINGS THAT SAID FEDERAL REGULATORY APPROVAL OF CERTAIN MEDICAL DEVICES GIVES MANUFACTURERS BROAD PROTECTION FROM SUITS FILED BY PATIENTS WHO ARE INJURED KING VS COLLAGEN CORP STAMPS VS COLLAGEN CORP DECLINED TO HEAR AN APPEAL BY GOVIDEO INC SCOTTSDALE ARIZ WHICH SOUGHT TO REINSTATE AN ANTITRUST LAWSUIT AGAINST THREE JAPANESE ELECTRONICS GIANTS GOVIDEO INC VS MATSUSHITA ELECTRIC INDUSTRIAL CO 9310050080 931005 US RAWSTEEL OUTPUT SLID 16 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 16 LAST WEEK TO 1769000 TONS FROM 1798000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 43 FROM THE 1696000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 843 OF ITS CAPABILITY LAST WEEK COMPARED WITH 857 THE PREVIOUS WEEK AND 785 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 9310050079 931005 PHILADELPHIA STOCK EXCHANGE NEW YORK THE PHILADELPHIA STOCK EXCHANGE SAID IT IS EXPLORING THE DEVELOPMENT OF AN ELECTRONIC TRADING SYSTEM TO REPLACE ITS ASIAN TRADING SESSION THE ASIAN SESSION WHICH RUNS FROM 7 PM TO 11 PM EDT ACCOUNTS FOR ONLY 4 OF THE EXCHANGE'S CURRENCY VOLUME BY CONTRAST THE EARLYMORNING SESSION 1230 AM TO 8 PM ACCOUNTS FOR MORE THAN 25 OF VOLUME THE EXCHANGE SAID FLOOR TRADERS AT THE EXCHANGE SAID THE END OF THE ASIA SESSION HAD BEEN ANTICIPATED THE MINUSCULE TRADING VOLUME IS PARTLY A FUNCTION OF LOW IMPLIED VOLATILITY IN YEN OPTIONS UNTIL THE LAST FEW MONTHS TRADERS SAY 9310050078 931005 WHO'S NEWS MAN WHO BUILT UP HCA SAYS MERGER REFLECTS THE NEED FOR NEW LEADERSHIP BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL AFTER SPENDING 25 YEARS BUILDING THE LARGEST HOSPITAL COMPANY IN THE COUNTRY THOMAS F FRIST JR IS SELLING THE STORE THE 55YEAROLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HCAHOSPITAL CORP OF AMERICA SAYS HIS COMPANY'S AGREEMENT TO BE ACQUIRED BY COLUMBIA HEALTHCARE CORP FOR 57 BILLION IN STOCK WILL ENABLE HCA TO CONTINUE TO COMPETE IN THE NEW WORLD OF HEALTH CARE ENVISIONED BY PRESIDENT CLINTON BUT THE MOVE DR FRIST ADDS ALSO REFLECTS THE NEED FOR NEW LEADERSHIP AFTER THE ACQUISITION DR FRIST WILL BE CHAIRMAN OF THE COMBINED COMPANIES WHILE RICHARD SCOTT CURRENTLY COLUMBIA'S CHIEF EXECUTIVE WILL TAKE THE REINS AS PRESIDENT AND CHIEF EXECUTIVE QUITE FRANKLY SAYS DR FRIST THE DEMANDS OF HEALTHCARE REFORM REQUIRE EXECUTIVES WITH A NEW ENERGY LEVEL AND ENTHUSIASM INDEED WHILE HCA HAS NAVIGATED THE MEDICAL SHOALS OF THE PAST DECADE IN REASONABLY GOOD SHAPE COMPANIES IN THE FUTURE WILL BE ENGAGED IN NOTHING LESS THAN SURVIVAL TACTICS SAYS MARGO VIGNOLA A HEALTHCARE ANALYST AT SALOMON BROTHERS CONSEQUENTLY SHE SAYS MANAGEMENTS WILL HAVE TO BE A LOT MORE AGGRESSIVE TO PLAY IN THIS TURBULENT MARKET THE MARKET WAS MORE SEDATE IN 1968 WHEN DR FRIST FRESH FROM A STINT IN THE AIR FORCE JOINED WITH HIS FATHER AND A GROUP OF INVESTORS TO BUY A SINGLE SMALL HOSPITAL IN NASHVILLE TENNTHE FIRST OF HUNDREDS THAT WOULD LEAD TO THE CREATION OF HCA DR FRIST AND HCA LIKE OTHER HEALTHCARE COMPANIES WANDERED DOWN VARIOUS BLIND ALLEYS DURING A PERIOD WHEN BROAD DIVERSIFICATION SEEMED TO BE THE ANSWER TO FUTURE PROFITS THE COMPANY TRIED IN 1985 TO ACQUIRE A GIANT MEDICAL SUPPLIER AMERICAN HOSPITAL SUPPLY BUT WAS OUTBID IT MOVED INTO THE RISKY AREAS OF HEALTH MAINTENANCE ORGANIZATIONS AND INSURANCE PRODUCTS THEN BACKED OFF IT BOUGHT A STAKE IN A NURSING HOME CHAIN THEN HAD SECOND THOUGHTS AND SOLD IT IN EARLY 1987 AFTER YEARS OF DISAPPOINTING CORPORATE EARNINGS DR FRIST DECIDED TO SELL 104 UNDERPERFORMING LOWOCCUPANCY HOSPITALS ALLAYING CRITICISMS OF EXCESSIVE CAUTION IN 1989 HE TOOK HCA PRIVATE IN A 51 BILLION LEVERAGED BUYOUTONLY TO BRING THE COMPANY PUBLIC AGAIN LAST YEAR AT A TIME WHEN WALL STREET WAS SWOONING OVER HEALTHCARE STOCKS THE MARKET HOWEVER HASN'T BEEN KIND TO HCA OF LATE BEFORE THE ANNOUNCEMENT OF THE MERGER WITH COLUMBIA THE COMPANY'S STOCK PRICE WAS HOVERING FOR MONTHS AT ABOUT 20 A SHARE LAST YEAR'S PUBLIC OFFERING WAS PRICED AT 2150 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE HCA CLOSED AT 28875 A SHARE UP 6125 OR NEARLY 27 DR FRIST ALREADY A WEALTHY MAN WILL BECOME SIGNIFICANTLY MORE SO AFTER THE COMPLETION OF THE MERGER HE AND HIS FAMILY HOLD ABOUT 12 MILLION SHARES OF HCA STOCK OR ABOUT 79 OF THE SHARES OUTSTANDING UNDER THE AGREEMENT BETWEEN HCA AND COLUMBIA DR FRIST AND HIS FAMILY WOULD RECEIVE ABOUT 126 MILLION SHARES OF COLUMBIA STOCK VALUED AT ABOUT 3638 MILLION BASED ON YESTERDAY'S CLOSING PRICE OF 28875 DOWN 1375 IN BIG BOARD COMPOSITE TRADING BUT DR FRIST SAYS HE DOESN'T INTEND TO SELL ANY OF HIS HOLDINGS IN THE COMBINED COMPANIES IF I HAD WANTED TO DO THAT I WOULD HAVE FOLLOWED A DIFFERENT STRATEGY HE SAYS INCLUDING THE USE OF DIVIDENDS OR A RECAPITALIZATION INSTEAD DR FRIST SAYS HE IS SIMPLY FOLLOWING THE BLUEPRINT FOR HEALTHCARE REFORM PUT FORTH BY MR CLINTON THE PRESIDENT HE SAYS CLEARLY WANTS ALLIANCES OF MEDICAL PROVIDERS IN TURN THOSE ALLIANCES WILL PROVIDE BROAD HEALTHCARE NETWORKS IN MAJOR MARKETS THAT ARE ATTRACTIVE TO PURCHASERS OF HEALTH CARE ACCORDINGLY AFTER PORING OVER THE ALMOST 300 PAGES OF MR CLINTON'S PLANS DR FRIST SAYS HE TELEPHONED MR SCOTT COLUMBIA'S CHIEF EXECUTIVE AND PROPOSED A MERGER MR SCOTT HE SAYS WAS PLEASANTLY SURPRISED TO GET MY CALL AFTER ALL DR FRIST ADDS HE KNEW OUR COMPANY WELL AND I HAVE FOLLOWED HIS CAREER DR FRIST CITES THE COMPANIES' POSITIONS IN FLORIDA AS EVIDENCE OF WHAT A COMBINED ORGANIZATION COULD OFFER HCA HAS A STRONG PRESENCE IN NORTHERN FLORIDA AND THE PANHANDLE COLUMBIA IS WELLSITUATED FROM ORLANDO SOUTH TOGETHER THE COMPANIES CAN PROVIDE COVERAGE TO EMPLOYERS THROUGHOUT THE STATE LIKE BARNETT BANK OR TO STATE GOVERNMENT ITSELF MEANWHILE HCA HAS THREE HOSPITALS IN ATLANTA AND A NETWORK OF PRIMARYCARE OFFICES JOINING FORCES WITH COLUMBIA WOULD ADD TWO HOSPITALS IN THE METROPOLITAN AREA INCLUDING ONE IN POPULOUS GWINETT COUNTY THAT WOULD ENABLE HCA TO OFFER MORE SERVICES OVER A WIDER GEOGRAPHIC AREA ADVANTAGES THAT MAY BE PARTICULARLY IMPORTANT IN THE COMPANY'S CURRENT BID TO WIN A HEALTHCARE CONTRACT FROM DELTA AIR LINES FOR ITS 60000 EMPLOYEES AND FAMILY MEMBERS IN THE AREA DR FRIST SAYS THE PLANNED ACQUISITION BY COLUMBIA HAS REJUVENATED HIM ALTHOUGH HIS PERSONAL SCHEDULE WOULD HARDLY SEEM TO REQUIRE ANY ADDED EXCITEMENT HE SAYS HE RUNS SIX MILES A DAY HE ALSO PLAYS TENNIS SKIS ON WATER AND SNOW BICYCLES AND FOR GOOD MEASURE HANG GLIDES INCLUDING A FLIGHT LAST SUMMER FROM A STARTING HEIGHT OF 3000 FEET IN ASPEN COLO HE INSISTS HE WILL REMAIN INVOLVED IN THE DAYTODAY ACTIVITIES OF THE TWO COMPANIES ADDING THAT HIS 25 YEARS' EXPERIENCE IN THE BUSINESS COMBINED WITH MR SCOTT'S VISION WILL PROVIDE A NICE ROUNDING OUT AT THE TOP OF THE ORGANIZATION WE'RE GOING TO REPOSITION THIS COMPANY HE SAYS NOT ONLY TO SURVIVE BUT TO PROSPER 9310050077 931005 MARKETING & MEDIA INVESTCORP PLANS TO PURCHASE CAMELOT MUSIC BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTCORP THE BAHRAINBASED INVESTOR GROUP SAID IT PLANS TO ACQUIRE CAMELOT MUSIC INC THE US'S THIRDLARGEST MUSIC RETAILER WITH 365 STORES INVESTCORP WHOSE INVESTORS HAVE MAJOR INTERESTS IN RETAIL PROPERTIES RANGING FROM ICE CREAM MAKER CARVEL CORP TO SAKS FIFTH AVENUE WOULDN'T RELEASE TERMS OF THE ACQUISITION BUT SOURCES CLOSE TO THE NEGOTIATIONS FOR THE NORTH CANTON OHIOBASED COMPANY SAID THE MUSIC CHAIN WHICH HAS STORES IN 34 STATES IS EXPECTED TO SELL FOR MORE THAN 350 MILLION INVESTCORP WHICH REPRESENTS MIDDLE EASTERN INVESTORS IS THE LATEST LARGE COMPANY WITH MEDIA INTERESTS TO JUMP INTO THE 5 BILLION US MUSICRETAILING INDUSTRY UK'S THORN EMI PLC HAS LAUNCHED THE HMV MUSIC CHAIN IN THE US AND BLOCKBUSTER ENTERTAINMENT CORP THE NATION'S LARGEST CHAIN OF VIDEO STORES PAID 185 MILLION TO ACQUIRE TWO LARGE RECORD CHAINS SOUND WAREHOUSE AND MUSIC PLUS BLOCKBUSTER ALSO JOINED WITH LONDONBASED VIRGIN RETAIL GROUP LTD TO CREATE 15 BLOCKBUSTER VIRGIN MEGASTORES INVESTCORP WHOSE INVESTORS RECENTLY ACQUIRED THE 50 OF ITALIAN LUXURY GOODS COMPANY GUCCI GROUP IT DIDN'T ALREADY OWN WILL BUILD ON THE CAMELOT ACQUISITION AN INVESTCORP SPOKESMAN SAID THE INVESTORS GROUP WAS INTERESTED IN CAMELOT'S INTERNAL EXPANSION AS WELL AS ITS ACTIVELY CONSIDERING ACQUISITIONS INVESTCORP PLANS TO ACQUIRE THE CHAIN FROM CAMELOT'S FOUNDER AND OWNER PAUL L DAVID FOUNDED IN 1956 CAMELOT MUSIC STORES ARE FOUND LARGELY IN MALLS THE STORES SELL RECORDED MUSIC ON COMPACT DISKS AND CASSETTE TAPES AS WELL AS PRERECORDED VIDEOCASSETTES AND OTHER HOMEENTERTAINMENT SOFTWARE PRIVATELY HELD THE COMPANY HAD REVENUE OF 421 MILLION IN FISCAL 1993 BILLBOARD MAGAZINE REFERRED TO CAMELOT AS ONE OF THE PREEMINENT MALLBASED CHAINS WITH ABOUT A 45 SHARE OF THE US MUSIC MARKET BILLBOARD SAID CAMELOT IS SAID TO GENERATE 350 TO 400 IN SALES PER SQUARE FOOT OF SELLING SPACE WHICH IS MUCH HIGHER THAN OTHER MALLBASED MUSIC CHAINS MR DAVID DIDN'T RETURN CALLS FOR COMMENT MR DAVID WHO IS 70 YEARS OLD IS EXPECTED TO RETIRE AS THE COMPANY'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE JAMES E BONK 45 CURRENTLY CAMELOT'S EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER WILL ASSUME THE POSTS OF PRESIDENT AND CHIEF EXECUTIVE MUSIC RETAILING IS LIKELY TO CONTINUE TO BE AN ACTIVE ACQUISITION TERRITORY SUPER CLUB MUSIC CORP A WORLDWIDE MUSIC RETAILER OWNED BY PHILIPS ELECTRONICS NV IS SAID TO HAVE ITS US STORES UP FOR SALE SOURCES CLOSE TO INVESTCORP SAID THE COMPANY ISN'T A BIDDER FOR THE SUPER CLUB STORES AS PUBLISHED REPORTS HAVE SUGGESTED BUT INDUSTRY SOURCES SAID BLOCKBUSTER IS THE LEADING CONTENDER TO ACQUIRE THE STORES IN THE US WHICH GO UNDER THE NAMES RECORD BAR TRACKS AND TURTLE'S AMONG OTHERS BLOCKBUSTER WHICH CURRENTLY OWNS 237 MUSIC STORES SAID IT WOULDN'T COMMENT PHILIPS EXECUTIVES COULDN'T BE REACHED IMMEDIATELY FOR COMMENT 9310050076 931005 ECONOMY POVERTY SPREAD IN 1992 TO TOTAL OF 369 MILLION RANKS OF POOR AMERICANS INCREASED BY 12 MILLION AS RICHEST GOT RICHER BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE RANKS OF POOR AMERICANS SWELLED 12 MILLION TO 369 MILLION LAST YEAR WHILE THE WALLETS OF THE RICHEST GOT FATTER THE CENSUS BUREAU SAID THE CENSUS BUREAU'S ANNUAL REPORT BASED ON A MONTHLY SURVEY OF 60000 HOUSEHOLDS NATIONWIDE SAID THE PERCENTAGE OF AMERICANS LIVING BELOW THE POVERTY LINE INCREASED TO 145 FROM 142 A YEAR AGO THE GOVERNMENT DEFINES POVERTY AS A FAMILY OF FOUR WITH AN INCOME OF 14335 OR LESS IN 1992 ALTHOUGH THE BUREAU SUGGESTED THAT THE PERCENTAGE INCREASE DOESN'T REPRESENT A SIGNIFICANT JUMP IT IS ROUGHLY THE SAME RATIO OF AMERICANS LIVING IN POVERTY AS IN THE DEPTHS OF THE FIERCE EARLY1980S RECESSION MEDIAN HOUSEHOLD INCOME OF 30786 HELD STEADY WITH 1991 BUT REMAINED NEARLY 2000 BELOW THE 1989 LEVEL SOME ECONOMISTS PREDICTED THAT THE TWOYEAROLD ECONOMIC RECOVERY SLOW AS IT IS WOULD PULL MORE AMERICANS OUT OF POVERTY BUT THE SHIFT FROM HIGHERPAYING MORE SECURE MANUFACTURING JOBS TO LOWERPAYING SERVICE JOBS ACCOUNTS FOR MUCH OF THE STUBBORN PERSISTENCE OF POVERTY SAID DEMETRA NIGHTINGALE A RESEARCHER WITH THE URBAN INSTITUTE A WASHINGTON THINK TANK MANY OF THE POOR WERE EMPLOYED AT LEAST PART OF 1992 ABOUT 40 OF POOR AMERICANS OLDER THAN AGE 16 OR 94 MILLION PEOPLE WORKED AT LEAST SOME TIME DURING THE YEAR IT'S BECOMING CLEAR THAT WORK IS NO LONGER A GUARANTEED ROUTE OUT OF POVERTY SAID MS NIGHTINGALE ONE GOAL OF THE CLINTON ADMINISTRATION IS TO REVERSE THAT TREND BY MAKING WORK PAY THE EARNED INCOME TAX CREDIT 1511 FOR WORKING PARENTS WITH ONE CHILD IN 1993 AND CONSIDERABLY SWEETENED IN FUTURE YEARS IN THE LATEST FEDERAL BUDGET IS ONE STEP THE ADMINISTRATION'S PROPOSED HEALTHINSURANCE COVERAGE FOR ALL AMERICANS ALSO WOULD MAKE LOWERPAYING JOBS THAT LACK MEDICAL INSURANCE MORE ATTRACTIVE IN DETERMINING THE OFFICIAL POVERTY RATE THE GOVERNMENT INCLUDES CASH ASSISTANCE SUCH AS SOCIAL SECURITY PAYMENTS AND AID FOR FAMILIES WITH DEPENDENT CHILDREN USING ANOTHER CALCULATION THAT GIVES WEIGHT TO THE VALUE OF A HOME AS WELL AS GOVERNMENTPROVIDED HEALTH INSURANCE FOOD STAMPS AND SUBSIDIZED HOUSING THE POVERTY RATE FOR 1992 WAS 103 POVERTY PATTERNS USING THE LATTER MORE COMPREHENSIVE CALCULATION SHOW THE SAME PROPORTIONATE RISE IN THE PAST THREE YEARS AS THE OFFICIAL MEASURE DEMOGRAPHIC CHANGES IN RECENT DECADES MAY ALSO BE TIGHTENING POVERTY'S GRIP ONESIXTH OF ALL HOUSEHOLDS ARE HEADED BY WOMEN BUT THEY ACCOUNTED FOR 524 OF POOR FAMILIES IN 1992 FULLTIME WORKING WOMEN SAW THEIR MEDIAN EARNINGS RISE 13 IN 1992 TO 21440 BUT THAT'S STILL JUST 71 OF WHAT MEN EARNED EARNINGS BY MEN WERE UNCHANGED SOME ANALYSTS DON'T ANTICIPATE HUGE DECLINES IN POVERTY RATES IN THE FORESEEABLE FUTURE THE LONGTERM TREND OF POVERTY RATES WILL CONTINUE TO BE UPWARD PREDICTED ROBERT GREENSTEIN EXECUTIVE DIRECTOR OF THE CENTER OF BUDGET AND POLICY PRIORITIES HE CITED ERODING WAGES SHRINKING STATE ASSISTANCE FOR THE POOR AND THE INCREASE IN SINGLEPARENT FAMILIES AS MAJOR CONCERNS THE BUREAU'S REPORT ALSO CAST LIGHT ON SEVERAL POINTS OF CONTENTION IN THE DEBATE OVER HEALTHCARE REVISION NAMELY WHO HAS INSURANCE AND WHAT IT WOULD COST TO COVER THEM FOR EXAMPLE 285 OF POOR PEOPLE SAID THEY HAD NO HEALTH INSURANCE OF ANY KIND DURING THE YEAR THAT IS THEY EARNED JUST ENOUGH TO BE DISQUALIFIED FROM GOVERNMENTPAID MEDICAID BUT NOT ENOUGH TO CLIMB ABOVE THE POVERTY LINE IN CONTRAST ABOUT 124 OF AMERICANS LIVING ABOVE THE POVERTY LINE LACKED HEALTH INSURANCE SOME 289 OF YOUNG ADULTS AGES 18 THROUGH 24 LACKED HEALTH INSURANCE A GREATER PROPORTION THAN IN ANY OTHER AGE GROUP THAT'S IMPORTANT BECAUSE THAT GROUP ISN'T LIKELY TO BE AS GREAT A BURDEN ON A NATIONAL HEALTHCARE SYSTEM AS OLDER AMERICANS IN CONTRAST ONLY 12 OF AMERICANS OLDER THAN 65 LACKED HEALTH INSURANCE IN 1992 NEARLY ALL AMERICANS 65 AND OLDER ARE ELIGIBLE FOR THE FEDERAL MEDICARE PROGRAM AND 677 OF THE ELDERLY HAD PRIVATE HEALTH INSURANCE THAT SUPPLEMENTED THEIR MEDICARE COVERAGE THE INCOME INEQUALITIES THAT ACCELERATED IN THE EARLY 1980S CONTINUED INTO 1992 WITH THE TOP FIFTH OF AMERICAN HOUSEHOLDS INCREASING THEIR ALREADY DISPROPORTIONATE SHARE OF INCOME THE RICHEST 20 OF HOUSEHOLDS ACCOUNTED FOR 469 OF THE NATION'S INCOME UP FROM 465 THE YEAR BEFORE MEAN INCOME FOR THAT GROUP WAS 91494 THE RICH CLEARLY DID GET RICHER SAID DANIEL WEINBERG OF THE COMMERCE DEPARTMENT ONE OF THE AUTHORS OF THE CENSUS BUREAU STUDY MEANWHILE THE BOTTOM FIFTH OF AMERICAN HOUSEHOLDS ACCOUNTED FOR JUST 38 OF INCOME THE SAME AS IN 1991 MEAN INCOME FOR THAT GROUP WAS 7328 IN 1992 HOUSEHOLD INCOME DIDN'T FALL FOR ANY RACIAL GROUP THOUGH THE DISPARITIES REMAINED FROM PREVIOUS YEARS MEDIAN HOUSEHOLD INCOME FOR WHITES WAS 32368 18660 FOR BLACKS 38153 FOR ASIANS AND 22848 FOR HISPANICS 9310050075 931005 WHO'S NEWS NETWORK COMPUTING DEVICES MOUNTAIN VIEW CALIF NETWORK COMPUTING DEVICES INC NAMED JUDITH ESTRIN PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDING HER HUSBAND WILLIAM CARRICO WHO REMAINS CHAIRMAN MS ESTRIN 38 YEARS OLD HAS BEEN EXECUTIVE VICE PRESIDENT OF THE MAKER OF COMPUTER TERMINALS SINCE THE COUPLE FOUNDED THE COMPANY IN 1988 NETWORK COMPUTING IS THEIR SECOND VENTURE THEY ALSO FOUNDED BRIDGE COMMUNICATIONS INC IN 1981 AND LEFT AFTER IT WAS PURCHASED BY 3COM CORP IN 1987 MR CARRICO 43 SAID HE WOULD BE SPENDING A SUBSTANTIAL AMOUNT OF HIS TIME ON NETWORK COMPUTING MS ESTRIN WILL TAKE OVER ALL DAYTODAY OPERATIONS 9310050072 931005 WHO'S NEWS A WUNDERKIND WHO'S GOBBLING HOSPITAL CHAINS BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL HOW DID RICHARD SCOTT OF COLUMBIA HEALTHCARE CORP EMERGE AS ONE OF THE PREMIER DEAL MAKERS IN CORPORATE AMERICA START WITH AN APPARENT INABILITY TO TAKE NO FOR AN ANSWER LAST YEAR MR SCOTT'S HOMETOWN OF NORTH KANSAS CITY MO REJECTED HIS BID TO PURCHASE A 360BED CITYOWNED HOSPITAL EVEN AFTER MR SCOTT DRAGGED HIS BROTHER A LOCAL HIGH SCHOOL VICE PRINCIPAL INTO THE MAYOR'S OFFICE TO EMPHASIZE HIS LOCAL CONNECTIONS THE TOWN SAID THE HOSPITAL JUST WASN'T FOR SALE BUT EVEN AS HE STEERED COLUMBIA THROUGH BILLIONDOLLAR DEALS WITH GALEN HEALTH CARE INC AND HCAHOSPITAL CORP OF AMERICA THE 40YEAROLD MR SCOTT HAS PECKED AWAY RELENTLESSLY AT NORTH KANSAS CITY AT ONE POINT ENLISTING A FRIEND OF THE MAYOR'S LATE HUSBAND AS HIS LOBBYIST HE REMAINS CONFIDENT THAT THE COMPANY HE COFOUNDED FIVE YEARS AGO WILL EVENTUALLY PREVAIL IN HIS HOMETOWN OUR WHOLE PROCESS OF GROWING IS TO FIND HOSPITALS THAT WE ARE INTERESTED IN ACQUIRING AND WAIT UNTIL THEY ARE READY TO SELL SAYS MR SCOTT COLUMBIA'S PRESIDENT AND CHIEF EXECUTIVE OFFICER JUDGING FROM COLUMBIA'S RECENT HISTORY THAT'S PROBABLY NOT A HOLLOW BOAST ON SATURDAY THE LOUISVILLE KYBASED HOSPITAL CONCERN ANNOUNCED THAT IT WOULD ACQUIRE HCA FOR 57 BILLION IN STOCK AND THUS MERGE THE NATION'S TWO LARGEST FORPROFIT HOSPITAL CHAINS INTO A NEW ENTITY WITH ANNUAL REVENUE ESTIMATED TO EXCEED 10 BILLION IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY HCA ROSE 6125 A SHARE TO 28875 AND COLUMBIA FELL 1375 A SHARE TO 28875 BUT THE REAL KEY TO FASTGROWING COLUMBIA'S FUTURE LIES IN ITS ABILITY TO RAPIDLY EXPAND IN LOCAL MARKETS SUCH AS KANSAS CITY USING THE ACUTECARE HOSPITALS IT ACQUIRES FROM PUBLICLY TRADED COMPANIES SUCH AS HCA AND GALEN AS BASES OF OPERATIONS IT AIMS TO EXPAND WITHIN A MARKET BY ADDING NOTFORPROFIT HOSPITALS OUTPATIENT SURGERY CENTERS AND HOME HEALTHCARE NETWORKS THAT WILL PERMIT IT TO OFFER ONESTOP SHOPPING CENTERS FOR MANAGEDCARE OPERATORS AND EVENTUALLY FOR THE REGIONAL HEALTH ALLIANCES ENVISIONED BY THE CLINTON ADMINISTRATION'S AMBITIOUS HEALTHCARE REFORM PACKAGE AND IN THAT ENDEAVOR THE COMPANY WILL CONTINUE TO RELY UPON MR SCOTT'S RELENTLESS SKILLS AS A NEGOTIATOR EVEN AS A YOUNG MAN MR SCOTT WAS KNOWN AS SOMEONE WHO WAS ALWAYS LOOKING FOR A GOOD INVESTMENT AND NEVER SPENT A DIME THAT HE DIDN'T HAVE TO HE WOULD GET A NEW CAR AND NEVER GET ANY ACCESSORIES SAYS HIS FATHER RETIRED TRUCKER ORBA SCOTT WHO RECALLS BEING SHOCKED ONE DAY WHEN HIS SON CAME HOME WITH A NEW CAR THAT HAD A CIGARETTE LIGHTER AT THE DALLAS LAW FIRM OF JOHNSON & GIBB WHERE MR SCOTT WENT TO WORK IN THE CORPORATE LAW SECTION AFTER EARNING HIS LAW DEGREE FROM SOUTHERN METHODIST UNIVERSITY HE WAS KNOWN AS A TIRELESS WORKER WHO WOULD METHODICALLY WORK THROUGH STACKS OF PAPERWORK INVOLVING DOZENS OF SEPARATE TRANSACTIONS THAT HE KEPT ON THE FLOOR AROUND DESK HE WOULD WORK ASTRONOMICAL HOURS TO GET DEALS DONE RECALLS ATTORNEY JEFF CHAPMAN WHO HEADS THE FIRM'S CORPORATE LAW SECTION RICK WOULD GO NIGHT AFTER NIGHT WITHOUT SLEEP HE HAD AN ABILITY TO WORK THOSE LONG HOURS AND YET MAINTAIN A CLEAR HEAD ALL THAT WORK RESULTED IN SOME BIG DEALS AND NEAR DEALS IN THE HEADY LEVERAGEDBUYOUTCRAZY 1980S IN 1986 AS OUTSIDE COUNSEL TO REPUBLIC HEALTH CORP MR SCOTT HELPED PATCH TOGETHER A LEVERAGED BUYOUT BY THAT COMPANY'S MANAGEMENT THE DEBT REPUBLIC TOOK ON IN THAT LBO EVENTUALLY FORCED MANAGEMENT TO REORGANIZE UNDER BANKRUPTCYCOURT SUPERVISION THE NEXT YEAR MR SCOTT PUT TOGETHER A BID FOR HCA THAT WAS REJECTED ANOTHER POTENTIAL BIDDER WAS FORT WORTH FINANCIER RICHARD RAINWATER WHO ULTIMATELY PURCHASED A SUBSTANTIAL STAKE IN HCA MR RAINWATER WAS LOOKING FOR SOMEONE WHO COULD PUT TOGETHER A MAJOR HEALTHCARE COMPANY AND HE JOINED WITH MR SCOTT TO CREATE COLUMBIA IN LATE 1987 AT THE TIME LARGE OVERBEDDED HOSPITAL CHAINS WERE STRUGGLING AMID GROWING EFFORTS BY GOVERNMENT AND PRIVATE PAYERS TO CAP REIMBURSEMENT RATES AND SHIFT PATIENTS INTO LESSEXPENSIVE OUTPATIENT FACILITIES WITH THAT IN MIND COLUMBIA'S FOUNDING PHILOSOPHY WAS A SIMPLE ONE TO CUT COSTS AND INCREASE OCCUPANCY RATES COLUMBIA PURCHASED SEVERAL TROUBLED HOSPITALS IN AN INDIVIDUAL MARKET CLOSED SOME TO INCREASE THE USAGE OF THOSE THAT REMAINED AND CENTRALIZED MANAGEMENT WITHIN A MARKET MEANWHILE TO LAND CONTRACTS WITH MANAGED CARE NETWORKS THE COMPANY EITHER ACQUIRED OR OPENED OUTPATIENT SURGERY CENTERS REHABILITATION HOSPITALS AND HOMEHEALTHCARE NETWORKS MR SCOTT ALSO GAVE HIS LOCAL MARKET MANAGERS BROAD AUTONOMY TO ACQUIRE SMALLER OUTPATIENT FACILITIES AND NEGOTIATE MANAGED CARE CONTRACTS WITH LOCAL CORPORATIONS A LOCAL MANAGER MR SCOTT SAYS CAN COMPLETE ANY TRANSACTION VALUED AT 1 MILLION OR LESS WITHOUT CHECKING WITH CORPORATE HEADQUARTERS ESSENTIALLY THEY RUN BIG LOCAL BUSINESSES SO WE'VE GOT TO GIVE THEM A LOT OF AUTONOMY SAYS MR SCOTT AS LONG AS THEY ARE WITHIN THEIR BUDGET THEY CAN DO WHATEVER THEY WANT IN ADDITION TO LEAVING COLUMBIA'S REGIONAL MANAGERS FREE TO RESPOND TO LOCAL MARKET CONDITIONS AND COMPETITORS' MOVES THE PHILOSOPHY ALLOWS MR SCOTT TO SPEND SEVERAL DAYS A WEEK FLYING BETWEEN MAJOR CITIES IN SEARCH OF NEW ACQUISITIONS AFTER PICKING OFF INDIVIDUAL HOSPITALS IN MIAMI AND HOUSTON CORPUS CHRISTI AND EL PASO TEXAS IN THE LATE 1980S HE BECAME KNOWN WITHIN THE INDUSTRY AS ONE OF THE FEW PLAYERS WITH MONEY TO SPEND AND AS A BUYER WHO WAS WILLING TO GO AN EXTRA MILE TO CLOSE AN ACQUISITION THAT HE WANTED AT THE TIME THE LARGE COMPANIES WERE NOT ACQUIRING MERGING OR DOING ANYTHING RECALLS BRADY JUSTICE FORMER PRESIDENT OF BASIC AMERICAN MEDICAL INC A SEVENHOSPITAL FORT MYERS FLABASED CHAIN THAT APPROACHED MR SCOTT IN 1991 AFTER SEVERAL TELEPHONE CONVERSATIONS BASIC AMERICAN EXECUTIVES FLEW TO TEXAS TO MEET WITH MR SCOTT BUT NEGOTIATIONS BOGGED DOWN WHEN BASIC AMERICAN INSISTED ON 11 COLUMBIA SHARES FOR EVERY ONE OF ITS OWN AFTER SEVERAL HOURS OF NEGOTIATION MR SCOTT REFUSED TO MOVE BEYOND ONE SHARE UNTIL DAVID VANDEWATER COLUMBIA'S CHIEF OPERATING OFFICER CALLED HIM INTO THE HALL FOR A QUICK CONFERENCE WE WERE GETTING READY TO GO TO THE AIRPORT SAYS MR JUSTICE WHO SUBSEQUENTLY BECAME A COLUMBIA BOARD MEMBER RICK CAME BACK AND SAID WE'VE THOUGHT ABOUT IT AND IT'S A FAIR DEAL AND WE'LL TAKE IT' BANG THAT WAS THE END OF OUR NEGOTIATIONS HE WILL SIT DOWN AND HE WILL LISTEN TO YOU MR VANDEWATER SAYS OF HIS BOSS'S NEGOTIATING STYLE HE'LL GET TO WHERE HE NEEDS TO BE THIS SUMMER MR SCOTT HAS BEEN TOURING THE COUNTRY TELLING MEDICAL GROUPS IN CHICAGO DENVER SAN ANTONIO AND OTHER CITIES THAT COLUMBIA INTENDS TO CONTINUE GROWING NOW EVEN WITH THE HUGE HCA NETWORK TO SWALLOW HE SAYS HE INTENDS TO REMAIN ON THAT TRACK BUT HOSPITAL EXECUTIVES CAUTION THAT MANY OF HIS PRIME TARGETS AMONG COMMUNITYBASED NOTFORPROFIT HOSPITALS ARE SETTING UP THEIR OWN ALLIANCES TO COMPETE AND SOME SIMPLY WON'T AGREE TO BE ACQUIRED THEIR BOARDS SIMPLY WON'T SELL BECAUSE THEY HAVE BEEN COMMUNITYBASED FOREVER AND THEY WANT TO CONTINUE TO REMAIN COUMMNITY BASED SAYS DAN BOURQUE SENIOR VICE PRESIDENT OF VOLUNTARY HOSPITALS OF AMERICA INC A TRADE GROUP THAT REPRESENTS 650 NOTFORPROFIT FACILTIES AS USUAL MR SCOTT IS RELUCTANT TO TAKE NO FOR AN ANSWER IN THE BUSINESS WORLD HE SAYS MY BELIEF IS THAT LOGICAL THINGS HAPPEN 9310050071 931005 FORD MOTOR PICKS TROTMAN FOR CHAIRMAN FIRST FOREIGNBORN MANAGER TO HEAD THE COMPANY SUCCEEDS POLING NOV 1 BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH FORD MOTOR CO NAMED ALEXANDER J TROTMAN HEAD OF ITS WORLDWIDE AUTO OPERATIONS CHAIRMAN TO LEAD IT AT A TIME OF INTENSIFYING GLOBAL COMPETITION MR TROTMAN'S ELEVATION TO SUCCEED HAROLD A POLING AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER HAD BEEN EXPECTED SINCE THE 60YEAROLD MR TROTMAN WAS PUT IN CHARGE OF FORD'S WORLDWIDE AUTO OPERATIONS LAST YEAR MR POLING 67 IS TO STEP DOWN NOV 1 MR TROTMAN BORN IN ENGLAND EDUCATED IN SCOTLAND AND A US CITIZEN SINCE THE MID1970S BECOMES THE FIRST FOREIGNBORN CHAIRMAN OF FORD AND ONLY ITS SIXTH CHIEF EXECUTIVE HE TAKES CHARGE OF FORD AT A TIME WHEN IT BOASTS OF BEING ONE OF THE LOWESTCOST CAR MAKERS IN THE WORLD WHEN FIVE OF THE TOPSELLING VEHICLES IN THE US WEAR THE FORD BADGE AND WHEN IT HAS BEEN SEIZING MARKET SHARE IN THE US FROM GENERAL MOTORS CORP AT THE SAME TIME AS RONALD A GLANTZ AN ANALYST FOR DEAN WITTER DISCOVER & CO PUTS IT TROTMAN HAS A FULL PLATE OF PROBLEMS MR GLANTZ CITES THE NEED TO PRODUCE PRODUCTS FOR THE US MARKET THAT ARE GREAT NOT JUST ADEQUATE FORD'S PROFITABILITYPERCAR HAS BEEN HARDHIT BY LONGRUNNING PROBLEMS WITH ITS EUROPEAN AUTO OPERATION AND THE COMPANY IS OPERATING IN AN INDUSTRY THAT HAS AN OVERCAPACITY OF 11 MILLION OR 12 MILLION UNITS WORLDWIDE OR ABOUT 20 BY MR POLING'S ESTIMATE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY FORD'S COMMON CLOSED AT 5675 UP 25 CENTS AN AUTO ENTHUSIAST MR TROTMAN A CAR ENTHUSIAST WHO SPEAKS IN A SOFT SCOTTISH BROGUE FITS INTO DETROIT'S NEW BREED OF INTERNATIONALLY TRAINED CHIEF EXECUTIVES LIKE MR POLING MR TROTMAN BRINGS CONSIDERABLE EXPERIENCE IN FORD'S OVERSEAS OPERATIONS TO THE JOB SIMILARLY JOHN F SMITH JR PRESIDENT AND CHIEF EXECUTIVE OF GM AND ROBERT J EATON CHAIRMAN AND CHIEF EXECUTIVE OF CHRYSLER CORP BOTH PREVIOUSLY RAN GM'S EUROPEAN OPERATIONS AS THE INDUSTRY BECOMES MORE GLOBAL IT'S GOT TO BE A PLUS TO HAVE HAD SUCH EXPERIENCE MR TROTMAN SAID IN AN INTERVIEW YESTERDAY THE MARKET IS THE GLOBE NOW HE SAID ARGUING THAT AUTOS MADE IN EUROPE NORTH AMERICA AND JAPAN MORE AND MORE COMPETE FOR THE SAME CUSTOMERS HE ADDED THAT THE GLOBAL OVERCAPACITY PUTS PRESSURE ON YOU TO BE SUPER COMPETITIVE AS COMPETITORS SLASH MARGINS TO THE BONE MR TROTMAN SET A SIMPLE THEME FOR HIS LEADERSHIP LOYALTY WE WANT TO HAVE THE HIGHEST LOYALTY IN OUR EMPLOYEES AND OUR SUPPLIERS IN OUR CUSTOMERS AND IN OUR STOCKHOLDERS HE SAID ADDING THAT THAT IMPLIES RUNNING A FIERCELY COMPETITIVE COMPANY DOES THAT MEAN FORD IS AIMING TO UNSEAT GM AS THE NO 1 AUTO MAKER NOT NECESSARILY MR TROTMAN SAID ALTHOUGH HE ACKNOWLEDGED THAT FORD HAS GAINED SUBSTANTIAL MARKET SHARE FROM GM IN RECENT YEARS AND HAS BEEN GRADUALLY ADDING CAPACITY I CAN SAY HANDONHEART THAT WE HAVEN'T DISCUSSED THAT AT ALL HE SAID WE COULD WELL BE THE NO 1 COMPANY BUT WE DON'T LAY AWAKE NIGHTS THINKING ABOUT THAT WE'RE NOT AIMING AT ANY MARKETSHARE NUMBER WE'RE AIMING TO BE THE BEST COMPANY WE CAN MR POLING IS RESIGNING HIS SEAT ON FORD'S BOARD AND MR TROTMAN'S POST AS PRESIDENT OF FORD'S WORLDWIDE AUTOMOTIVE OPERATIONS WON'T BE FILLED INSTEAD W WAYNE BOOKER EXECUTIVE VICE PRESIDENT OF INTERNATIONAL AUTOMOTIVE OPERATIONS AND EDWARD E HAGENLOCKER EXECUTIVE VICE PRESIDENT OF NORTH AMERICAN AUTOMOTIVE OPERATIONS WILL REPORT TO MR TROTMAN ALLAN D GILMOUR WHO WAS ONE OF THE CANDIDATES TO SUCCEED MR POLING WILL CONTINUE AS VICE CHAIRMAN OVERSEEING FORD'S CORPORATE STAFF AND ITS FINANCIAL SERVICES GROUP MR GILMOUR SAID HE WAS TOLD A COUPLE OF MONTHS AGO THAT MR TROTMAN'S PROMOTION WOULD BE ANNOUNCED DURING A CEREMONY YESTERDAY MARKING THE START OF PRODUCTION OF FORD'S RESTYLED MUSTANG ALTHOUGH MR GILMOUR ACKNOWLEDGED SOME DISAPPOINTMENT AT THE OUTCOME THE MANAGEMENT SUCCESSION AT FORD HAS BEEN BY FAR THE SMOOTHEST IN THE AUTO INDUSTRY GM'S TOP MANAGEMENT INCLUDING THENCHAIRMAN ROBERT STEMPEL WAS FORCED OUT LAST YEAR BY OUTSIDE BOARD DIRECTORS AND LEE IACOCCA FORMER CHRYSLER CHAIRMAN RESISTED STEPPING DOWN UNTIL HIS DIRECTORS GAVE HIM A DEADLINE MR POLING LEAVES FORD AT A CHALLENGING TIME ITS SHARE OF THE US VEHICLE MARKET IN THE FIRST EIGHT MONTHS OF THE YEAR IS 254 UP FROM 244 A YEAR AGO IT IS THE MARKET LEADER IN VARIOUS SEGMENTS OVER RIVAL GM AND CHRYSLER HOWEVER FORD'S ESTIMATED PROFIT OF VEHICLES SOLD IN THE US WAS 333 PERVEHICLE IN THE SECOND QUARTER LESS THAN HALF THE ESTIMATED 808 EARNED BY CHRYSLER FOR EACH VEHICLE FORD'S CASHDRAINING JAGUAR UNIT AND UNPROFITABLE EUROPEAN OPERATIONS ALSO ARE SQUEEZING PROFIT MARGINS FORD HAS TAKEN STEPS TO STANCH THE LOSSES BUT IT MAY BE A LONG WHILE BEFORE EITHER OPERATION RETURNS TO PROFITABILITY IN THE US IT IS MY FEELING THAT OUR BOTTOM LINE WILL IMPROVE MR TROTMAN SAID WE ARE REPLACING SEVERAL CARS THAT ARE QUITE DATED AND IN EUROPE HE SAID I'M LOOKING AT BETTER TIMES FOR FORD 9310050070 931005 LETTERS TO THE EDITOR IN DEFENSE OF PROCTER & GAMBLE AS THE HUSBAND OF A 10YEAR PROCTER & GAMBLE EMPLOYEE I AM COMPELLED TO RESPOND TO YOUR SEPT 7 ARTICLE ON ALECIA SWASY'S BOOK SOAP OPERA ABOUT P&G IT DISAPPOINTS ME THAT YOU WOULD GIVE SPECIAL ATTENTION TO A BOOK WITH SO LITTLE MERIT IN THE YEARS THAT OUR FAMILY HAS BEEN ASSOCIATED WITH P&G I HAVE BEEN EXTREMELY IMPRESSED WITH THE INTEGRITY PROFESSIONALISM AND CLASS THAT THE ORGANIZATION DISPLAYS TOWARD ITS EMPLOYEES AND BUSINESS ASSOCIATES I HAVE BEEN EMPLOYED BY THREE MAJOR CORPORATIONS OVER THE YEARS AND I CAN TELL YOU THAT THE CHARGES THAT MS SWASY LEVELS AGAINST P&G ARE ACCEPTED AND COMMONPLACE AMONG LARGE ORGANIZATIONS FOR EXAMPLE IT IS NOT EXTRAORDINARY FOR EMPLOYERS OF ALL TYPES TO CONDUCT PRIVATE INVESTIGATIONS ON EMPLOYEES SUSPECTED OF WRONGDOING THOUSANDS OF PRIVATE INVESTIGATION FIRMS EXIST ENTIRELY FOR THIS REASON AS FOR THE REVELATION THAT P&G ENCOURAGES EMPLOYEES TO TURN IN COWORKERS WHO ARE BREAKING THE RULES WHAT COMPANY DOESN'T AND WHAT IS WRONG WITH THAT ALL MAJOR ADVERTISERS HAVE A PROFOUND EFFECT ON THE AGENCIES THAT WORK FOR THEM IT IS TOTALLY ACCEPTED IN THE AGENCY BUSINESS FOR CLIENTS TO BE INVOLVED IN AGENCY BUSINESS AND STAFFING DECISIONS ALSO IS MS SWASY UNFAMILIAR WITH THE TERM CONFLICT OF INTEREST THAT GUIDES CLIENTAGENCY RELATIONSHIPS I SUSPECT THAT P&G DIDN'T WANT TO UTILIZE AN AGENCY FOR ITS JUICE BUSINESS THAT ALSO REPRESENTED HILLS BROS COFFEE BECAUSE IT HAS A MAJOR COFFEE BRAND OF ITS OWN 9310050069 931005 QUARTERLY MUTUAL FUNDS REVIEW ADVISERS SEE SHORTERTERM BONDS FOREIGN ISSUES AS THE NEXT LEADERS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GO SHORTERTERM GO ABROAD CONSIDER A BIT OF BOTTOMFISHING AND DON'T WRITE OFF MUNICIPAL BONDS JUST YET THAT'S WHAT MONEY MANAGERS ARE ADVISING FOR PEOPLE LOOKING TO INVEST IN BOND FUNDS OVER THE NEXT QUARTER OR TWO WHY LONGTERM INTEREST RATES IN THE US ARE AT THEIR LOWEST LEVELS IN DECADES WITH THE 30YEAR TREASURY YIELDING ABOUT 6 MANY FUND MANAGERS BELIEVE ALL THE BIG RETURNS HAVE BEEN SQUEEZED OUT BUYING LONGERTERM BONDS WAS THE KEY TO PERFORMANCE IN THE THIRD QUARTER SAYS THOMAS STEFFANCI DIRECTOR OF FIXEDINCOME INVESTMENTS AT FIDELITY INVESTMENTS BUT IT WON'T BE THE KEY IN THE NEXT QUARTER THAT'S BECAUSE WE'RE IN THE NEIGHBORHOOD OF THE BOTTOM FOR LONGTERM RATES BUT THE QUARTER WAS A WINNER FOR MUTUAL FUNDS INVESTING IN LONGTERM TREASURY BONDS WHICH SHOWED A TOTAL GAIN IN SHARE PRICE PLUS INCOME TO FUND SHAREHOLDERS OF 452 ZEROCOUPON TREASURY FUNDS PERFORMED EVEN BETTER LEADING THE PACK IN THE QUARTER WITH A 719 TOTAL RETURN ZEROCOUPON BONDS DON'T PAY ANNUAL INTEREST BUT INSTEAD ARE SOLD AT A DEEP DISCOUNT TO FACE VALUE WITH THE INVESTOR COLLECTING THE FULL FACE AMOUNT AT MATURITY GLOBAL BOND FUNDS JUMPED 432 IN THE QUARTER WITH A BOOST FROM INTERESTRATE CUTS BY CENTRAL BANKS IN EUROPE AND JAPAN CONVERTIBLE BOND FUNDS WITH RETURNS OF 510 IN THE QUARTER WERE WELLPOSITIONED TO TAKE ADVANTAGE OF DROPS IN LONGTERM INTEREST RATES AND A MODERATELY STRONG STOCK MARKET PERFORMANCE ESPECIALLY AMONG SMALL AND FOREIGN ISSUES THE QUARTER'S WEAK PERFORMERS WERE FUNDS INVESTING IN SHORTTERM SECURITIES BOTH GOVERNMENT AND GLOBAL AND FUNDS STUFFED WITH MORTGAGEBACKED SECURITIES IN MANY MARKETS SHORTTERM RATES DIDN'T DROP NEARLY AS MUCH AS LONGTERM RATES IN SOME CASES THEY ACTUALLY ROSE JUNK BOND FUNDS HIGHFLIERS IN THE SECOND QUARTER WITH RETURNS OF 475 FELL TO EARTH IN THE THIRD QUARTER WITH RETURNS OF JUST 195 REFLECTING A WEAKENED JUNKBOND MARKET UNDER A FLOOD OF NEW AND RISKIER ISSUES AND INVESTOR WITHDRAWALS OF MONEY FROM JUNKBOND FUNDS FUNDS SPECIALIZING IN SHORTTERM US TREASURY SECURITIES POSTED TOTAL RETURNS OF 164 FOR THE QUARTER SHORTTERM GLOBAL FUNDS WERE HIT HARD BY THE CURRENCY CRISIS IN EUROPE AND POSTED TOTAL RETURNS OF JUST 055 FOR THE THREE MONTHS SINCE THE PRICES OF LONGTERM SECURITIES DROP FASTER THAN PRICES OF SHORTERTERM SECURITIES WHEN INTEREST RATES RISE FUNDS THAT ARE BUYING THEM NOW ARE MUCH MORE SUSCEPTIBLE TO BIG SWINGS OVER THE NEXT QUARTER SO SOME ADVISERS ARE RECOMMENDING FUNDS THAT BUY MORE INTERMEDIATETERM AND SHORTTERM SECURITIES SOME OF THE LOWEST TOTAL RETURNS IN THE THIRD QUARTER CAME FROM MORTGAGE FUNDS GINNIE MAE FUNDS HAD RETURNS OF 107 WHILE ADJUSTABLERATE MORTGAGE FUNDS HAD RETURNS OF 098 PLUNGING INTEREST RATES WERE BAD NEWS FOR THESE FUNDS WHEN RATES PLUNGE MORE HOMEOWNERS REFINANCE THEIR MORTGAGES AND THE VALUE OF THE BONDS BACKED BY THEIR HOME LOANS SINKS BUT OVER THE NEXT QUARTER SOME MONEY MANAGERS SUCH AS MR STEFFANCI OF FIDELITY THINK MORTGAGE BOND FUNDS WILL DO BETTER AND THEY ADVISE INVESTORS TO DO SOME BOTTOMFISHING IT'S FAMILIAR ADVICE LAST YEAR AT ABOUT THIS TIME MORTGAGEBACKED FUNDS WERE POUNDED BY DROPPING RATES AND MANY INVESTORS POURED MONEY BACK INTO THE FUNDS THINKING THAT THINGS COULD GET NO WORSE THEY WERE WRONG THE YIELD ON THE 30YEAR TREASURY BOND HAS DROPPED MORE THAN 130 PERCENTAGE POINTS SINCE THEN THERE ARE STILL SOME NAYSAYERS SUCH AS HUGH LAMLE EXECUTIVE VICE PRESIDENT AT MD SASS INVESTORS SERVICES INC HE BELIEVES THERE COULD BE ONE MORE WAVE OF REFINANCINGS FROM FENCE SITTERS WHO HAVE BEEN WAITING FOR RATES TO BOTTOM OUT FUNDS INVESTING ABROAD ARE LIKELY TO FARE WELL THOUGH FUNDS SPECIALIZING IN INDUSTRIALIZED NATIONS' BONDS ARE PROBABLY A BETTER CHOICE FOR THE FOURTH QUARTER THAN DEVELOPING NATIONS' BONDS SAYS MR STEFFANCI THAT'S BECAUSE EUROPE AND JAPAN STILL ARE STRUGGLING WITH FLAGGING ECONOMIES AND ARE LIKELY TO CUT INTEREST RATES FURTHER TO SPUR GROWTH HE SAYS DEVELOPING NATIONS ON THE OTHER HAND HAVE DONE VERY WELL OVER THE PAST YEAR BUT MONEY MANAGERS FEAR THAT EXPECTATIONS FOR CONTINUED GROWTH OF RETURNS ARE UNREALISTIC AT LEAST UNTIL THE NORTH AMERICAN FREE TRADE AGREEMENT IS SIGNED MR STEFFANCI SUGGESTS FAVORING EUROPEAN AND ASIAN BONDS IN THE FOURTH QUARTER OVER DEVELOPING NATIONS' BONDS AND REVERSING THAT POSITION IN THE NEXT QUARTER BEFORE YOU GO INTO GLOBAL FUNDS HOWEVER REMEMBER THAT MUCH OF THE RETURN COMES FROM CURRENCY FLUCTUATIONS IF THE DOLLAR STRENGTHENS AGAINST FOREIGN CURRENCIES INVESTORS' GAINS COULD TURN INTO LOSSES EVEN IF INTEREST RATES DROP SHARPLY ONE OF THE MOST UNDERRATED SECTORS OF THE BOND FUND BUSINESS HOWEVER IS TAXEXEMPT MUNI BOND FUNDS MANY MONEY MANAGERS SAY GENERAL MUNICIPAL BOND FUNDS POSTED RETURNS OF 336 OVER THE QUARTER AND 1310 OVER THE PAST 12 MONTHS AND THAT'S BEFORE ACCOUNTING FOR TAX SAVINGS ON THESE TAXFREE FUNDS DESPITE PROMISES OF HIGHER TAXES NEXT YEAR MUNI BONDS REMAIN RELATIVELY CHEAP NOTE PERFORMANCE BASED ON PRELIMINARY DATA FOR NEWSPAPERLISTED FUNDS RESULTS DO NOT REFLECT ENTIRE LIPPER DATABASE 9310050068 931005 YOUR MONEY MATTERS INVESTMENT DARTBOARD PROS HAVE EASY WIN OVER DARTS BUT TRAIL INDUSTRIAL AVERAGE BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL INVESTMENT PROS WON THEIR THIRD STRAIGHT VICTORY OVER THE FORCES OF CHANCE IN THIS COLUMN'S STOCKPICKING CONTEST BUT THERE WASN'T MUCH GLORY IN THEIR TRIUMPH THE PROFESSIONALS AVERAGED A 26 GAIN IN THE CONTEST WHICH RAN FROM APRIL 5 THROUGH SEPT 30 THAT WASN'T ANY GREAT SHAKES CONSIDERING THAT THE DOW JONES INDUSTRIAL AVERAGE ROSE 52 DURING THE SAME PERIOD BUT IT DIDN'T TAKE MUCH TO TROUNCE THE RANDOMLY SELECTED DARTBOARD PORTFOLIO THE DART BRIGADE PERFORMED MISERABLY LOSING 177 IT'S ALMOST ENOUGH TO GIVE DART THROWING AS A METHOD OF STOCK SELECTION A BAD NAME IN A SERIES OF 40 OVERLAPPING SIXMONTH CONTESTS THE PROS HAVE WON 23 TIMES AND THE DARTS 17 THE PROS ARE ALSO 2317 AGAINST THE DOW JONES INDUSTRIAL AVERAGE THEIR AVERAGE SIXMONTH GAIN HAS BEEN 84 COMPARED WITH 42 FOR THE INDUSTRIAL AVERAGE AND ONLY 33 FOR THE DARTS IN THE LATEST CONTEST SALLY ANDERSON OF KOPP INVESTMENT ADVISORS IN EDINA MINN TOPPED THE FIELD WITH A 457 GAIN IN DIGITAL MICROWAVE CORP SCOTT KRANTZ A NORTHBROOK ILL MONEY MANAGER EKED OUT A 46 GAIN IN WYLE LABORATORIES TO TAKE SECOND PLACE THE OTHER TWO PROFESSIONAL STOCK PICKERS TOOK LOSSES MS ANDERSON HAD FINISHED SECOND TWICE BEFORE TRYING FOR HER FOURTHSTRAIGHT FINISH IN THE MONEY SHE SELECTS HILLHAVEN CORP A TACOMA WASH COMPANY THAT OPERATES A CHAIN OF NURSING HOMES HILLHAVEN GETS ABOUT 94 A DAY FOR EACH PATIENT IN ITS CHAIN BUT IT IS MOVING INTO REHABILITATION CARE FOR ALZHEIMER'S DISEASE PATIENTS AND SUBACUTE CARE FOR PATIENTS WHO REQUIRE MEDICAL ATTENTION BUT DON'T NEED QUITE THE LEVEL OF CARE YOU WOULD GET IN THE HOSPITAL MS ANDERSON SAYS FOR SUCH PATIENTS HILLHAVEN CAN CHARGE ABOUT 300 A DAY STILL FAR LESS THAN THE 700 OR SO A DAY HOSPITALS CHARGE AND ACHIEVE HIGHER PROFIT MARGINS HILLHAVEN'S REVENUE WAS 125 BILLION FOR THE FISCAL YEAR ENDED IN MAY AND MS ANDERSON EXPECTS ONLY SLOW GROWTH COMPANY OFFICIALS ARE PRUNING SOME NURSING HOMES WITH SUBPAR PROFIT MARGINS AND CUTTING BACK ON RETAIL PHARMACIES WHILE HOLDING ONTO THEIR FASTER GROWING INSTITUTIONAL PHARMACY BUSINESS ALL THAT WILL RETARD SALES GROWTH BUT COULD BOOST EARNINGS MS ANDERSON FIGURES SHE THINKS THE COMPANY CAN SHOW EARNINGS GROWTH OF 20 TO 25 A YEAR DEBT AT 740 MILLION OR ABOUT 25 TIMES STOCKHOLDERS' EQUITY IS PRETTY BIG MS ANDERSON CONCEDES BUT SHE POINTS OUT THAT THE DEBT IS MUCH IMPROVED FROM A FEW YEARS AGO AND PREDICTS IT WILL CONTINUE TO COME DOWN THE HEAVY DEBT LOAD HELPS EXPLAIN WHY HILLHAVEN STOCK TRADED ON THE AMERICAN STOCK EXCHANGE FETCHED ONLY 356 A SHARE YESTERDAY AT THAT PRICE THE STOCK SELLS FOR ONLY 12 TIMES THE 30 CENTS A SHARE IN EARNINGS MS ANDERSON EXPECTS FOR CALENDAR 1994 MR KRANTZ LIKES ROADMASTER INDUSTRIES INC OF ENGLEWOOD COLO WHICH MAKES BICYCLES EXERCISE EQUIPMENT SLEDS AND CHILDREN'S LAMPS ITS BRANDS INCLUDE ROADMASTER BICYCLES VITAMASTER EXERCISE EQUIPMENT AND FLEXIBLE FLYER SLEDS ON ITS CHILDREN'S LAMPS AND PLASTIC TRICYCLES THE COMPANY IS AUTHORIZED TO FEATURE DISNEY CHARACTERS A BIG HELP IN SELLING TO YOUNGER CUSTOMERS AND THEIR PARENTS A LOT OF THE GROWTH IS IN THE KIDS' PRODUCTS SAYS MR KRANTZ FAST SALES GROWTH IS ROADMASTER'S MAIN ATTRACTION FOR MR KRANTZ SALES WERE 153 MILLION IN 1990 THIS YEAR THEY WERE 132 MILLION IN THE FIRST HALF ALONE EARNINGS ARE PERKING UP TOO FOR THE SIX MONTHS THROUGH JULY 3 ROADMASTER EARNED 18 MILLION OR 6 CENTS A SHARE UP FROM 786000 OR 3 CENTS A SHARE FOR THE SAME PERIOD LAST YEAR MR KRANTZ FIGURES ROADMASTER SHARES WHICH CLOSED AT 406 YESTERDAY ON THE AMERICAN STOCK EXCHANGE COULD HIT 650 WITHIN A YEAR JOINING THE FESTIVITIES ARE TWO NEW CONTESTANTS ANDREW L ADDISON IS A WELLKNOWN TECHNICAL MARKET ANALYST AND EDITOR OF ADDISON REPORT AN INVESTMENT NEWSLETTER IN FRANKLIN MASS PAUL W COMBS IS DIRECTOR OF RESEARCH FOR DAIN BOSWORTH INC A BROKERAGE HOUSE IN MINNEAPOLIS MR ADDISON IS TAKING A FLYER ON LITTLE PROTEIN DESIGN LABS INC BASED IN MOUNTAIN VIEW CALIF PROTEIN DESIGN IS WORKING ON SOME POTENTIAL MEDICAL BREAKTHROUGHS BUT CURRENTLY HAS ONLY 8 MILLION IN ANNUAL SALES AND NO EARNINGS THE STOCK BEGAN TRADING PUBLICLY IN THE FIRST QUARTER OF 1992 ACCORDING TO MR ADDISON THE COMPANY IS WORKING ON DRUGS THAT INHIBIT THE REJECTION PROCESS IN BONEMARROW AND ORGAN TRANSPLANTS THAT DELAY THE ONSET OF RETINITIS LEADING TO BLINDNESS IN AIDS PATIENTS AND THAT COMBAT HEPATITISB A SERIOUS DISEASE OF THE LIVER BUT AS A MARKET TECHNICIAN MR ADDISON PAYS AS MUCH ATTENTION TO A STOCK'S CHART AS TO A COMPANY'S PRODUCTS HE IS DRAWN TO PROTEIN DESIGN'S CHART BECAUSE THE STOCK PRICE HAS TRACED A W SHAPE AND NOW HAS BROKEN THE LONGTERM DOWNTREND AND BEGUN ITS THIRD UPLEG NOT ONLY IS THERE GOOD PRICE ACTION BUT VOLUME IS INCREASING ON THE RALLY MR ADDISON SAYS THE STOCK WAS AT 15 IN OVERTHECOUNTER TRADING YESTERDAY AND MR ADDISON BELIEVES IT CAN MOVE ABOVE 20 WITHIN A YEAR MR COMBS OPTS FOR THE COLORFULLY NAMED GROW BIZ INTERNATIONAL INC A MINNEAPOLIS RETAILING COMPANY THAT HIS FIRM HELPED TAKE PUBLIC GROW BIZ RUNS STORES THAT SELL BOTH NEW AND USED MERCHANDISE IN A CERTAIN CATEGORY ITS LARGEST CHAIN WITH SOME 350 STORES IS PLAY IT AGAIN SPORTS WHICH SELLS NEW AND USED SPORTS EQUIPMENT ONCE UPON A CHILD CURRENTLY WITH 23 STORES SELLS CHILDREN'S CLOTHING TOYS AND FURNITURE IN THE DEVELOPMENT STAGE ARE COMPUTER RENAISSANCE FOR COMPUTER EQUIPMENT AND MUSIC GO ROUND FOR MUSICAL INSTRUMENTS THIS IS NOT A CHEAP STOCK MR COMBS CONCEDES THE MULTIPLE OF THE STOCK PRICE TO PERSHARE EARNINGS IS VERY HIGH AT YESTERDAY'S PRICE OF 1850 THE STOCK WAS AT AN ASTRONOMICAL 231 TIMES ESTIMATED 1993 PERSHARE EARNINGS BUT MR COMBS SAYS WE FEEL THE CONCEPT IS INNOVATIVE MANAGEMENT IS GOOD AND THE GROWTH RATE IS EXCEPTIONAL HE THINKS EARNINGS ESTIMATED AT ABOUT 8 CENTS A SHARE THIS YEAR WILL GROW TO 35 CENTS IN 1994 AND 80 CENTS IN 1995 FOR THE COMING SIX MONTHS THE PROFESSIONALS' PICKS WILL COMPETE AGAINST A DARTBOARD PORTFOLIO CONSISTING OF BANCO DE GALICIA Y BUENOS AIRES GENERAL KINETICS INC NORTHWEST ILLINOIS BANCORP AND SPAGHETTI WAREHOUSE INC 9310050067 931005 QUARTERLY MUTUAL FUNDS REVIEW US STOCK FUNDS SPRINT 53 BUT FOREIGN RIVALS WIN IN QUARTER BY ROBERT MCGOUGH DESPITE ALL OF WALL STREET'S HANDWRINGING ABOUT LOFTY STOCK PRICES US STOCK MUTUAL FUNDS LEAPED 53 IN THE THIRD QUARTER AND THAT WAS ONLY ONE OF SEVERAL WELCOME SURPRISES FOR INVESTORS IN THE THREE MONTHS ENDED SEPT 30 INTERNATIONAL STOCK FUNDS SURGED 935 EVEN THOUGH ECONOMIES OVERSEAS CONTINUE TO STRUGGLE AVOIDING THE USUAL SUMMER SLUMP TECHNOLOGY SHARES MADE WINNERS OUT OF MANY GROWTH STOCK FUNDS THAT WERE FIRSTHALF WIMPS REALESTATE FUNDS RALLIED SHARPLY EVEN BATTERED BIOTECHNOLOGY FUNDS MANAGED A SMALL QUARTERLY GAIN DESPITE WIDESPREAD PREDICTIONS THAT 1990S STOCKMARKET RETURNS WOULD SHRIVEL TO SINGLE DIGITS THE HOLDERS OF US DIVERSIFIED STOCK FUNDS ARE SITTING WITH A 10 YEARTODATE GAIN THAT'S WELL AHEAD OF THE 757 NINEMONTH ADVANCE LOGGED BY THE STANDARD & POOR'S 500STOCK INDEX INCLUDING PRICE CHANGES AND REINVESTED DIVIDENDS IT WAS AN EXCEPTIONAL THIRD QUARTER FOR US STOCK FUNDS FAR ABOVE THEIR HISTORICAL AVERAGE RETURNS SAYS A MICHAEL LIPPER OF LIPPER ANALYTICAL SERVICES INC WHICH COMPILED THE DATA IF STOCKS REMAIN STRONG MR LIPPER SAYS THE CURRENT BULL MARKET ALMOST THREE YEARS OLD WILL SOON BECOME THE LONGEST IN THE PAST 11 STOCK MARKET CYCLES STOCK FUNDS BEAT THE 244 RETURN ON TAXABLE BOND FUNDS IN THE THIRD QUARTER AND BOTH STOCK AND BOND FUNDS BEAT THE 063 RETURN ON MONEYMARKET FUNDS PORTFOLIO MANAGERS FINISHED WELL AHEAD OF THE S&P'S 258 QUARTERLY GAIN THANKS TO TWO WINNING BETS FIRST THEY'RE PLACING MONEY IN SMALL STOCKS WHICH ARE ZIPPING PAST THE BIG STOCKS IN THE S&P 500 SECOND AS RECORD SUMS OF CASH FLOW INTO STOCK FUNDS 82 BILLION IN THE FIRST EIGHT MONTHS OF THE YEAR MORE THAN IN ANY PRIOR COMPLETE YEAR MANAGERS ARE INCREASINGLY PUTTING THE MONEY TO WORK IN BOOMING OVERSEAS STOCKS IN THE THIRD QUARTER THOSE INTERNATIONALMINDED RISKTAKERS WERE REWARDED WITH HIGH RETURNS LATIN AMERICAN FUNDS HAD A FIESTA GAINING 1288 INVESTORS IN GLOBAL SMALLCOMPANY FUNDS REAPED A 958 RETURN ON AVERAGE AND PACIFIC FUNDS ADVANCED 956 BROADLY DIVERSIFIED INTERNATIONAL FUNDS HELPED BY THEIR STRONG QUARTER ARE UP 2506 IN THE FIRST NINE MONTHS OF THE YEAR STOCKS AROUND THE WORLD HAVE BEEN DOING WELL SAYS KENNETH GREGORY EDITOR OF NOLOAD FUND ANALYST A NEWSLETTER IN SAN FRANCISCO EUROPE HAS BEEN DRIVEN BY ANTICIPATION OF FURTHER INTERESTRATE DECLINES IN ASIA THE STORY IS REALLY WHAT IT'S ALWAYS BEEN SUSTAINABLE GROWTH AND AN INCREASING AMOUNT OF FOREIGN MONEY GOING INTO THAT MARKET THE BOLDEST INVESTORS FARED THE BEST IN THE RANKS OF DIVERSIFIED US STOCK FUNDS SMALLSTOCK FUNDS AND CAPITALAPPRECIATION FUNDS HAD HIGHER RETURNS THAN THEIR MORE STABLE SIBLINGSEQUITYINCOME GROWTHANDINCOME AND GROWTH FUNDS MANY FUND MANAGERS THINK SHARES OF SMALL COMPANIES WILL CONTINUE TO OUTPERFORM STOCKS OF LARGE COMPANIES AS THEY HAVE SINCE EARLY 1991 BUT THE REAL EXCITEMENT THIS YEAR HAS BEEN ABROAD IN THE PAST COUPLE OF MONTHS FUND INVESTORS HAVE BEEN PUTTING HALF OR MORE OF THEIR CASH INTO FUNDS INVESTING OVERSEAS VENTURING ABROAD HAS HISTORICALLY MEANT TAKING GREATER RISKS THAN STAYING AT HOME NOT ONLY DO INVESTORS FACE THE USUAL MARKET RISKS BUT THEY ALSO MUST COPE WITH POLITICAL RISK SUCH AS COUNTERREVOLUTIONS IN RUSSIA AND SWINGS IN CURRENCY VALUES WHICH CAN QUICKLY MAGNIFY GAINS OR LOSSES IN FOREIGN STOCK MARKETS FUND MANAGERS INCREASINGLY LOOK BEYOND THE DEVELOPED ECONOMIES INTO EMERGING MARKETS THE STOCKS OF FASTGROWING DEVELOPING NATIONS MONEY FROM US FUNDS HAS HELPED FUEL THE EXPLOSIVE RISE IN THOSE SMALL MARKETS THIS YEAR THERE IS MORE MONEY LOOKING TO GET INTO THESE MARKETS THAN CAN GET ABSORBED WHY ARE INVESTORS SO INTERESTED IN RISKY EMERGING MARKETS WHERE DIZZYING PRICE SWINGS ARE THE NORM THE ANSWER IS THE COUNTRIES' RAPID ECONOMIC GROWTH EVERYBODY IS LOOKING AT THE DEVELOPED WORLD AND SAYING 1 GROWTH YUCK 7 GROWTH IN EMERGING MARKETS GIVE ME MORE OF THAT ONE MR FOULKES SAYS BUT INVESTORS HAVE BEEN CAUTIOUS ABOUT CHASING THE HIGH RETURNS OF FUNDS INVESTING IN JAPAN DESPITE THEIR HEFTY 4292 RETURN SO FAR THIS YEAR ABOUT HALF OF THE GAINS FROM JAPAN THIS YEAR HAVE COME FROM THE RISING YEN I THINK THE VALUATIONS OF JAPANESE STOCKS ARE JUST ABSURD SAYS ROBERT MARKMAN OF MARKMAN CAPITAL MANAGEMENT INC WE PREFER TO INVEST IN THE TIGERS OF EASTERN ASIA TRENDSURFING IN FINANCIAL MARKETS DOES HAVE ITS RISKS GOLD FUNDS TUMBLED A STEEP 963 IN THE THIRD QUARTER AFTER A TERRIFIC RUNUP IN THE FIRST SIX MONTHS OF 1993 STILL GOLD FUNDS HAVE THE BEST RECORD ON AVERAGE THIS YEAR UP 4368 IN THE FIRST NINE MONTHS BUT THE WORSTPERFORMING FUND GROUP IN THE FIRST HALF HEALTH AND BIOTECHNOLOGY FUNDS FINALLY BOOKED SOME GAINS IN THE THIRD QUARTER WITH A RISE OF 284 THOUGH THESE FUNDS REMAIN DOWN FOR THE YEAR SCIENCE AND TECHNOLOGY FUNDS SURGED 1016 IN THE QUARTER SOME FUND MANAGERS THINK THAT THE RAGE FOR COMMUNACOPIA HAS GONE TOO FAR WE WERE EVEN JOKING AROUND HERE THAT GWB CABLE' SHOULD GO PUBLIC SAYS JAMES RENCK MANAGER OF MERRILL LYNCH TECHNOLOGY FUND WHOSE A SHARES ARE UP 294 IN THE FIRST NINE MONTHS OF THE YEAR WHAT'S GWB CABLE THAT'S OUR ACRONYM FOR THE GEORGE WASHINGTON BRIDGE CONNECTING NEW YORK AND NEW JERSEY WHICH HAS A LOT OF CABLE ON IT MR RENCK RECENTLY MOVED HIS FUND 85 INTO CASH BECAUSE THERE'S SOMETHING CALLED GRAVITY THAT SHOULD PULL HIGHFLYING TECHNOLOGY STOCKS BACK TO EARTH GROWTH STOCK FUNDS WHICH INVEST IN THE HIGHPRICED STOCKS OF FASTGROWING COMPANIES REBOUNDED IN THE QUARTER GAINING 1165 THAT BEAT THE 515 RETURN FOR SOCALLED VALUE FUNDS WHICH INVEST IN STOCKS THAT LOOK CHEAP COMPARED WITH ASSETS OR EARNINGS GROWTH STOCK FUNDS NOW HAVE LEAPFROGGED AHEAD OF THE RETURNS OF VALUE FUNDS FOR THE FIRST NINE MONTHS OF THE YEAR LEADING 1795 TO 1373 A CATEGORY ON THE ACCOMPANYING TABLE REFERS TO GROWTH FUNDS BUT THAT DOESN'T MEASURE THE PERFORMANCE OF FUNDS THAT USE THE GROWTH STOCK INVESTMENT STYLE IN THE TABLE THE TERM GROWTH REFERS INSTEAD TO FUNDS SEEKING GROWTH OF PRINCIPAL WHICH MIGHT BE ACCOMPLISHED BY INVESTING IN EITHER GROWTH OR VALUE STOCKS SOME MONEY MANAGERS WORRY THAT THE GREAT APPETITE FOR FOREIGN STOCK FUNDS MIGHT STARVE THE US MARKET FOR CASH LOFTY US STOCK PRICES ARE BEING HELD UP BY CASH FLOWS FROM FUND INVESTORS SAYS RICHARD WEISS COMANAGER OF STRONG COMMON STOCK FUND UP 202 FOR THE NINE MONTHS IF THE CASH FLOW TO US FUNDS DRIED UP THERE COULD BE RISK IN THE MARKET MR WEISS SAYS BUT WILLIAM BERGER COMANAGER OF BERGER 100 FUND UP 193 IN THE FIRST NINE MONTHS SAYS THE APPARENTLY HUGE INFLOWS INTO MUTUAL FUNDS THIS YEAR AMOUNT TO LESS THAN 1 OF HOUSEHOLD FINANCIAL ASSETS CURRENT STOCKMARKET VALUATIONS MAY APPEAR HIGH BY HISTORICAL NORMS BUT HE SAYS THEY WILL LOOK LIKE PEANUTS BEFORE THIS IS OVER 9310050066 931005 BUSINESS BRIEF GROSSMAN'S INC LUMBER CHAIN TO RECORD CHARGE FOR THIRD QUARTER GROSSMAN'S INC EXPECTS TO RECORD A CHARGE OF ABOUT 35 MILLION IN THE THIRD QUARTER FROM THE CLOSING OF 11 STORES THE CLOSINGS PART OF A PROGRAM TO SHUT DOWN 22 STORES IN THE COMPANY'S EASTERN DIVISION WILL RESULT IN SEVERANCE AND OUTPLACEMENT EXPENSES INVENTORY WRITE DOWNS AND OTHER ANTICIPATED EXPENSES ACCORDING TO THE LUMBER AND BUILDING MATERIALS CHAIN IN ADDITION THE BRAINTREE MASS COMPANY SAID AN ADJUSTMENT TO ITS DEFERRED TAX ASSETS WILL NEGATIVELY AFFECT THIRDQUARTER EARNINGS IN THE YEAREARLIER THIRD QUARTER GROSSMAN'S POSTED NET INCOME OF 47 MILLION OR 18 CENTS A SHARE ON SALES OF 2458 MILLION THE STORE REDUCTION REPRESENTING ABOUT 16 OF GROSSMAN'S 141 STORES IN OHIO CALIFORNIA NEVADA AND NINE STATES IN THE NORTHEAST WILL GENERATE CASH FLOWS TO HELP FINANCE EXPANSION IN THE WEST AND MIDWEST TO UPGRADE ITS REMAINING EASTERNDIVISION STORES THE 22 STORES ACCOUNTED FOR REVENUE OF APPROXIMATELY 120 MILLION IN 1992 REPRESENTING 14 OF GROSSMAN'S TOTAL REVENUE 9310050065 931005 WHO'S NEWS TIGER MANAGEMENT GLOBAL TRADING FIRM NAMES NEW PRESIDENT NEW YORK JOHN A GRIFFIN WAS NAMED PRESIDENT OF TIGER MANAGEMENT CORP A TRADING FIRM THAT INVESTS 6 BILLION IN GLOBAL STOCK BOND AND CURRENCY MARKETS MR GRIFFIN 30 YEARS OLD JOINED TIGER MANAGEMENT IN 1987 HE MOST RECENTLY COMANAGED THE FIRM'S MACROPORTFOLIO WHICH AGGRESSIVELY INVESTS ON EXPECTATIONS OF SHIFTS IN THE BUSINESS CYCLES OF ECONOMIES AROUND THE WORLD THE ANNOUNCEMENT WAS MADE IN A LETTER TO THE STAFF BY TIGER FOUNDING PARTNER JULIAN H ROBERTSON JR MR GRIFFIN SUCCEEDS MR ROBERTSON WHO WILL TAKE THE NEW POSITION OF CHAIRMAN TIGER'S HEDGE FUND TRADING STYLE WHICH WOULD JUST AS SOON BET ON ONE STOCK'S DECLINE AS ON ANOTHER'S GAIN SINCE MAY 1980 HAS EARNED AN AVERAGE ANNUALIZED RETURN FOR INVESTORS OF 32 AFTER FEES THE FIRM SAYS THIS YEAR TIGER HAS TAKEN BIG POSITIONS IN FRENCH AND JAPANESE BONDS BETTING ON ECONOMIC SLOWDOWNS IN THOSE COUNTRIES THE MOVES HAVE BOOSTED RETURNS THIS YEAR TO 36 AFTER FEES 9310050064 931005 LETTERS TO THE EDITOR DISPUTE RESOLUTION PLAN FOR MEDICAL LITIGATION YOUR SEPT 16 LAW COLUMN PROCLAIMING THE ALTERNATIVE DISPUTE RESOLUTION ADR PROVISION OF THE CLINTON HEALTH PLAN A FAILURE IS FAULTY IN ITS CONCLUSIONS CONCERNING THE EFFECTIVENESS OF ADR THE CORRECT CONCLUSION IS FOUND IN THE COMMENTS MADE BY PROF LAURA MORLOCK THE DEVIL IS IN THE DETAILS MMI COS INSURES HOSPITALS AND HEALTH CARE PROFESSIONALS THROUGHOUT THE US IT IS OUR EXPERIENCE THAT TRIAL LAWYERS OPPOSED ADR IN THAT IT TAKES AWAY SYMPATHY AND THE CHANCE OF A RUNAWAY VERDICT THEREFORE IN ANY PROPOSED ADR EFFECTIVE ADR SHOULD BE MANDATORY AND THE OUTCOME SHOULD BE BINDING ON THE PARTIES WHERE NOT BINDING THE FINDINGS MUST BE ADMISSIBLE IN SUBSEQUENT COURT PROCEEDINGS WHAT THE PRESIDENT HAS PROPOSED WITH REGARD TO ADR IS EFFECTIVE WHEN COUPLED WITH STRONG CIVIL JUSTICE REFORM MEASURES THE PROPOSALS SHOULD BE GIVEN A CHANCE TO WORK 9310050063 931005 REVIEW & OUTLOOK EDITORIAL BURNING PARLIAMENT ONE MOSCOW CITIZEN WAS INCREDULOUS YESTERDAY AS HE WATCHED TANKS AND TROOPS ASSAULTING THE PARLIAMENTARY WHITE HOUSE HOW CAN THIS HAPPEN HERE HE ASKED WE ARE A GREAT NATION YES RUSSIA IS GREAT IN SIZE AND POTENTIAL BUT IT ALSO HAPPENS TO BE A NATION IN WHICH GOVERNING INSTITUTIONS LACK CLEARLY DEFINED RULES AND POWERS THE FACT THAT THEIR NAMES SOUND RIGHT AND RUSSIA HAS ATTAINED A MEASURE OF FREEDOM AND DEMOCRACY HAS FOOLED SOME WESTERNERS INTO A BELIEF THAT BORIS YELTSIN'S MOVE AGAINST PARLIAMENT WAS RASH AND DICTATORIAL IN FACT IT WAS INEVITABLE GIVEN THE COMBINATION OF AMBITIOUS PARLIAMENTARY POLITICIANS AND RUSSIA'S ILLDEFINED RULES OF POLITICAL CONDUCT THE RUSSIAN CONSTITUTION AND THE INSTITUTIONS IT DEFINES ARE MAINLY A HOLDOVER FROM THE COMMUNIST ERA THE DOCUMENT IS PURPOSELY AMBIGUOUS ABOUT THE POWERS OF PUBLIC OFFICES BECAUSE THERE WAS NEVER ANY INTENTION OF GIVING REAL POWER TO ANYONE OTHER THAN THE COMMUNIST PARTY'S GENERAL SECRETARY RUSSIA HAS OR HAD A PARLIAMENT BUT ONE PACKED BY A FORMER GENERAL SECRETARY NAMED GORBACHEV IT HAS A CONSTITUTIONAL COURT BUT ONE ALSO DOMINATED BY SYMPATHIZERS WITH THE ANCIEN REGIME AS EVIDENCED BY ITS DECISION LAST YEAR TO RESTORE THE PARTY'S PROPERTY RUSSIA NEEDS A CONSTITUTION THAT REPLACES ONEMAN RULE WITH A RULE OF LAW THE REASON RUSSIANS HAVE CONSISTENTLY SUPPORTED BORIS YELTSIN EVEN THROUGH THE BLOODY TUMULT OF THE LAST TWO DAYS IS THAT HE IS TRYING TO GIVE THEM EXACTLY THAT THE DRAFT DOCUMENT HAS BEEN COMPLETED AND APPROVED BY A CONSTITUENT ASSEMBLY ALL IT NEEDED WAS PARLIAMENTARY APPROVAL BUT IT WAS NEVER GOING TO GET THAT FROM THE PARLIAMENT MR YELTSIN DISSOLVED WEEK BEFORE LAST ITS MEMBERS WERE TOO ATTACHED TO THEIR POWER AND PERQUISITES TO SUBMIT THEMSELVES TO THE PERIODIC POPULAR ELECTIONS THE DRAFT CONSTITUTION REQUIRES THOUGH OPERATING IN A LEGAL VACUUM MR YELTSIN HAD THE MORAL AUTHORITY TO CALL NEW PARLIAMENTARY ELECTIONS FOR THE SIMPLE REASON THAT HE HIMSELF WAS ELECTED IN A FREE VOTE BY ALL THE RUSSIAN PEOPLE HE SUBMITTED AGAIN LAST SPRING TO A VOTE OF CONFIDENCE IN A REFERENDUM AND AGAIN WON AFTER THAT HE REPEATEDLY WARNED THE PARLIAMENT THAT IF IT CONTINUED TO BLOCK THE CONSTITUTIONAL PROCESS HE WOULD DISSOLVE IT WHEN HE DID SO AND MESSRS KHASBULATOV AND RUTSKOI CONTINUED TO DEFY HIS AUTHORITY A CLASH WAS UNAVOIDABLE MAINLY THROUGH THEIR OWN UNDERTAKINGS IT PROVED TO BE A BLOODY CLASH INDEED THE EQUIVALENT OF A SMALLSCALE CIVIL WAR MR YELTSIN HAS BEEN BACKED BY THE EUROPEAN COMMUNITY OTHER EUROPEAN LEADERS MOST OF THE OTHER FORMER SOVIET REPUBLICS PRESIDENT CLINTON AND THE RUSSIAN PEOPLE HOW COULD THEY DO OTHERWISE THE MAN IS TRYING TO SET UP A CONSTITUTIONAL DEMOCRACY AND HAS OFFERED TO SUBMIT HIMSELF TO THE VOTERS AGAIN SIX MONTHS AFTER THE PARLIAMENTARY ELECTIONS THE DRAFT CONSTITUTION PROMISES RUSSIANS GENUINE CIVIL RIGHTS THE PRIVATE OWNERSHIP OF PROPERTY A FUNCTIONING INDEPENDENT JUDICIARY AND A RULE OF LAW IT IS BY NO MEANS A PERFECT DOCUMENT MAINLY BECAUSE IT IS TOO DETAILED FOR A BASIC LAW BUT IT IS FAR BETTER THAN ANYTHING RUSSIANS HAVE EVER HAD BEFORE IT IS OF GREAT IMPORTANCE TO THE REST OF THE WORLD BECAUSE IF RUSSIA CAN BECOME A TRUE DEMOCRATIC REPUBLIC IT WILL BE FAR LESS DANGEROUS THAN IT IS TODAY THE KILLINGS IN MOSCOW SUNDAY NIGHT AND MONDAY OCCURRED BECAUSE RUSSIA HAS BEEN TRYING TO MANAGE ITS AFFAIRS WITH ONLY FRAGILE MEANS FOR DOING SO ITS CENTRAL BANK CONTROLLED BY THE PARLIAMENT IS A DISGRACE A SOURCE OF RAMPANT INFLATION LAW ENFORCEMENT HAS BROKEN DOWN IN THE CITIES WITH ASSORTED MAFIAS MAKING THE STREETS UNSAFE AND CORRUPT FUNCTIONARIES DESTROYING HONEST COMMERCE THE PARLIAMENT LACKING ANY LEGAL DEFINITION OF ITS POWERS HAD BECOME THE PLAYPEN OF AMBITIOUS POLITICIANS WHO SAW BORIS YELTSIN AS THE MAN TO BE TOPPLED IF THEIR OWN GOALS WERE TO BE REALIZED WHEN HE DEMANDED THAT THEY GO HOME AND FACE THE VOTERS MOST DID BUT SPEAKER KHASBULATOV AS WELL AS SUSPENDED VICE PRESIDENT RUTSKOI AND SOME DIEHARD FOLLOWERS DEFIED THE PRESIDENT AND ON SUNDAY CALLED IN SEVERAL THOUSAND ARMED ROUGHNECKS TO BEGIN THE SHOOTING AS WATCHERS OF THIS DRAMA ON TV KNOW YESTERDAY AFTERNOON THE WHITE HOUSE WAS STILL ABLAZE FROM THE TANK FIRE THE DIEHARDS HAD SURRENDERED AND MESSRS KHASBULATOV AND RUTSKOI WERE IN CUSTODY PRESUMABLY TO BE TRIED THE CITY REMAINED DANGEROUS BUT NOT AS DANGEROUS AS IT LOOKED SUNDAY NIGHT HOW COULD THIS HAVE ALL HAPPENED QUITE EASILY IT SEEMS BUT FROM ALL INDICATIONS BORIS YELTSIN HAS CLEARED ANOTHER HURDLE IN HIS DRIVE FOR CONSTITUTIONAL GOVERNMENT THERE WILL BE OTHER TESTS BECAUSE DEMOCRATIC INSTITUTIONS ARE NOT BUILT OVERNIGHT AND EVEN AFTER THEY ARE BUILT THEY SOMETIMES SUFFER CRISES BUT WITH THE DRAMATIC EVENTS OF THE LAST TWO DAYS RUSSIA HAS AGAIN AFFIRMED THAT IT TRULY WANTS TO BE A GREAT NATION 9310050061 931005 WHO'S NEWS WASHINGTON WATER POWER CO WASHINGTON WATER POWER CO SPOKANE WASH SAID RETIRED ARMY GEN H NORMAN SCHWARZKOPF 59 YEARS OLD WILL JOIN THE UTILITY'S BOARD AND WILL ALSO BECOME A BOARD MEMBER OF ITS WHOLLY OWNED PRIVATE INVESTMENT COMPANY PENTZER CORP A UTILITY SPOKESMAN SAID MR SCHWARZKOPF HAD NO PREVIOUS FINANCIAL OR PERSONAL CONNECTION WITH THE UTILITY AND WAS APPROACHED BY THE COMPANY TO SERVE ON ITS BOARD MR SCHWARZKOPF ALSO SERVES ON THE BOARD OF BORGWARNER SECURITY CORP CHICAGO IN A STATEMENT RELEASED BY WASHINGTON WATER POWER MR SCHWARZKOPF SAID HE EVENTUALLY HOPES TO LIVE IN THE PACIFIC NORTHWEST AND LIKES THE COMPANY'S COMMON SENSE APPROACH TO THE MANY PROBLEMS THAT FACE INDUSTRY IN THAT PART OF THE COUNTRY 9310050059 931005 BUSINESS BRIEFS FLEMING COS ACQUIRED 16 FLORIDA GROCERY STORES AND CERTAIN ASSETS FROM FLORIDA SUPERMARKETS INC AND PLANS TO ACQUIRE THE 51 OF BIG W SUPERMARKETS OF FLORIDA INC IT DOESN'T ALREADY OWN TERMS WEREN'T DISCLOSED KYSOR INDUSTRIAL CORP SIGNED A LETTER OF INTENT TO PURCHASE THE ASSETS OF KALT MANUFACTURING CO OF PORTLAND ORE TERMS WEREN'T DISCLOSED TRACOR INC'S VITRO CORP UNIT RECEIVED A ONEYEAR 276 MILLION CONTRACT FROM THE US NAVY TO PROVIDE SUPPORT SERVICES FOR THE FLEET BALLISTIC MISSILE PROGRAM FIRST MICHIGAN BANK CORP SIGNED A LETTER OF INTENT TO ACQUIRE OLD STATE BANK CORP A BANK HOLDING COMPANY IN FREMONT MICH THROUGH A SWAP OF STOCK LIVING CENTERS OF AMERICA INC ACQUIRED VARICARE INC IN A TRANSACTION VALUED AT 71 MILLION OR 8 A SHARE IN CASH AND STOCK NCR CORP A UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO SAID RETAILER JC PENNEY CO PURCHASED AN NCR SYSTEM TO PROVIDE TREND ANALYSIS FOR ITS CATALOG BUSINESS AND TO IMPROVE CATALOG MARKETING 9310050058 931005 ALLERGAN INC ELIMINATES 56 JOBS IRVINE CALIF ALLERGAN INC SAID IT ELIMINATED 56 JOBS IN ANTICIPATION OF VARIOUS CHANGES RELATED TO THE CLINTON ADMINISTRATION'S HEALTHCARE REFORM PROPOSALS THE NUMBER OF DISMISSALS WILL BE SOMEWHAT FEWER THAN THE NUMBER OF JOB CUTS BECAUSE SOME OF THE POSITIONS HAVE BEEN VACANT AND SOME PEOPLE WILL FIND NEW ASSIGNMENTS WITHIN THE COMPANY ALLERGAN SAID THE MAKER OF SPECIALTY EYECARE AND SKINCARE PRODUCTS HAS ABOUT 4900 EMPLOYEES WORLDWIDE WE NEED TO ADJUST OUR COSTS BASED ON WHAT WE THINK THE HEALTHCARE PLAN WILL LOOK LIKE A COMPANY SPOKESMAN SAID THE REDUCTIONS PARTICULARLY AFFECT THE COMPANY'S SURGICAL DIVISION WHICH MAKES INTRAOCULAR LENSES USED IN CATARACT SURGERY 9310050057 931005 WEST'S STEEL OUTPUT TO FALL 1 IN 1993 INDUSTRY INSTITUTE SAYS PARIS STEEL CONSUMPTION IN THE WESTERN WORLD IS EXPECTED TO EDGE DOWN 1 THIS YEAR WITH GROWTH IN THE US STEEL MARKET BARELY OFFSETTING WORSETHANEXPECTED DROPS IN EUROPE AND JAPAN THE INTERNATIONAL IRON & STEEL INSTITUTE SAID WHILE CONSUMPTION IN THE US IS EXPECTED TO INCREASE BY ABOUT 2 FROM 1992 TO 883 MILLION METRIC TONS CONSUMPTION IN THE EUROPEAN COMMUNITY IS EXPECTED TO SLIDE 8 TO 951 MILLION TONS CONSUMPTION IN JAPAN IS EXPECTED TO DROP 4 TO 765 MILLION TONS THE INSTITUTE'S SECRETARY GENERAL LENHARD J HOLSCHUH SAID THE GENERAL ECONOMIC ENVIRONMENT IS FAR FROM FAVORABLE MR HOLSCHUH TOLD STEELINDUSTRY EXECUTIVES ATTENDING THE INSTITUTE'S ANNUAL MEETING FOR 1994 MR HOLSCHUH FORECAST A 27 REBOUND IN WESTERN STEEL CONSUMPTION ON THE STRENGTH OF AN EXPECTED 27 RISE IN THE US AND A 32 UPTURN IN THE EC THE EUROPEAN COMMUNITY IS STRUGGLING TO HAMMER OUT AN INDUSTRY RESTRUCTURING PLAN PROVIDING FOR A 30 MILLION TON CUTBACK IN THE COMMUNITY'S STEELPRODUCTION CAPACITY AS FOR JAPAN THE OUTLOOK IS EVEN BLEAKER MR HOLSCHUH FORECAST THAT DEMAND FOR STEEL PRODUCTS IN JAPAN WOULD FALL A FURTHER 37 LOOKING FURTHER AHEAD MR HOLSCHUH PREDICTED STRONG GROWTH IN STEEL CONSUMPTION IN THE DEVELOPING ECONOMIES OF ASIA AND LATIN AMERICA 9310050056 931005 ECONOMY STEELMAKERS CITING STRONG DEMAND PLAN TO RAISE PRICES BY 3 NEXT YEAR BY TIMOTHY AEPPEL AND ERLE NORTON STAFF REPORTERS OF THE WALL STREET JOURNAL MAJOR DOMESTIC STEELMAKERS CITING STRONG DEMAND AND LEAN INVENTORIES PLAN TO BOOST PRICES ON THEIR BIGGEST SELLING PRODUCTS BY ABOUT 3 ON JAN 2 USX CORP'S US STEEL UNIT BETHLEHEM STEEL CORP AND LTV CORP THE NATION'S THREE LARGEST PRODUCERS ALL SAID THEY WOULD RAISE PRICES 15 A TON FOR HOTROLLED AND COATEDSTEEL PRODUCTS AND 20 A TON FOR COLDROLLED STEEL OTHER COMPANIES INCLUDING INLAND STEEL INDUSTRIES INC AND WHEELINGPITTSBURGH STEEL CORP REACTED WITH SIMILAR PRICE RISES ARMCO STEEL CO WHICH IS 50OWNED BY ARMCO INC SAID IT WAS STUDYING THE ISSUE WHILE NATIONAL STEEL CORP IS EXPECTED TO MAKE AN ANNOUNCEMENT TODAY THE ANNOUNCEMENTS COME SHORTLY AFTER THE US INTERNATIONAL TRADE COMMISSION CLEARED FOREIGN PRODUCERS ON THE BULK OF UNFAIR TRADE CASES PENDING AGAINST THEM IN THE WAKE OF THE ITC'S JULY DECISION FOREIGN PRODUCERS WERE EXPECTED TO PUMP MORE STEEL INTO THE US MARKET BUT DEMAND REMAINS BRISK AND IMPORTS HAVEN'T SURGED AS EXPECTED GIVING STEELMAKERS THE CONFIDENCE THAT THEY CAN PUSH THROUGH A BROADER INCREASE SEVERAL COMPANIES EVEN TOOK THE UNUSUAL STEP OF ANNOUNCING A FURTHER INCREASE OF ROUGHLY 2 FOR ALL SHEET PRODUCTS NEXT JULY BUT THE PRICE INCREASES MIGHT NOT HOLD IF IMPORTS PICK UP BY JANUARY AN INCREASE SET BY INLAND STEEL FOR OCTOBER ALREADY FAILED BUT IT WAS ANNOUNCED JUST A DAY BEFORE THE ITC RULING OTHER PRODUCERS FEARFUL OF A RISE IN IMPORTS WERE UNWILLING TO FOLLOW INLAND'S LEAD STEELMAKERS BADLY NEED HIGHER PRICES TWO YEARS OF DEPRESSED PRICES HAVE LEFT MANY COMPANIES SWIMMING IN RED INK AND DESPITE THREE SUCCESSFUL INCREASES THIS YEAR STEEL PRICES REMAIN RELATIVELY LOW BY HISTORICAL STANDARDS SOME ANALYSTS BELIEVE THE STEELMAKERS WILL SUCCEED IN PUSHING THROUGH AT LEAST PART OF THEIR ANNOUNCED INCREASES IN THE WAKE OF THE ITC DECISION EVERYONE SAID PRICES WOULD BE WEAKER BUT ORDER BOOKS HAVE REMAINED REMARKABLY STRONG SAID J CLARENCE MORRISON A STEEL ANALYST AT PRUDENTIAL SECURITIES INC IN NEW YORK MR MORRISON SAID LEAD TIME ON STEEL DELIVERIES STILL AVERAGES NEARLY FOUR WEEKS A LENGTHY DELAY INDICATING STRONG DEMAND IN THE MARKET RIGHT NOW WE HAVE A SELLER'S MARKET SAID HARRY SYAK PRESIDENT OF SYRO INC A GIRARD OHIO STEEL FABRICATOR 9310050055 931005 BUSINESS BRIEF HOGAN SYSTEMS INC COMPANY BUYS BACK STAKE TOTALING 5 HELD BY IBM HOGAN SYSTEMS INC SAID IT BOUGHT BACK THE 5 STAKE IN THE COMPANY HELD BY INTERNATIONAL BUSINESS MACHINES CORP FOR AN UNDISCLOSED SUM IBM OFFICIALS COULDN'T BE REACHED FOR COMMENT IN A NEWS RELEASE ISSUED BY HOGAN AN IBM SPOKESMAN DIDN'T CITE A REASON FOR THE SALE OF THE SHARES BUT SAID THE COMPUTER MAKER REALIZED A VERY GOOD RETURN ON ITS INVESTMENT HOGAN A DALLAS SOFTWARE SUPPLIER SAID IBM BOUGHT THE 700000 SHARES IN SEPTEMBER 1990 WHEN HOGAN SHARES RANGED FROM 250 A SHARE TO 350 A SHARE IN NATIONAL OVERTHECOUNTER TRADING IN TRADING YESTERDAY HOGAN CLOSED AT 1050 DOWN 125 CENTS IN CONNECTION WITH THE REPURCHASE HOGAN SAID JOHN J HIGGINS AN IBM VICE PRESIDENT AND ASSISTANT GENERAL MANAGER RESIGNED FROM HOGAN'S BOARD MR HIGGINS'S RESIGNATION REDUCES THE BOARD'S SIZE TO FOUR DIRECTORS BUT A HOGAN SPOKESMAN SAID THE COMPANY PLANS TO EVENTUALLY ADD TWO DIRECTORS 9310050054 931005 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 ABBOTT LABORATORIES 200 MILLION OF NOTES DUE OCT 1 2003 PRICED AS 56S AT 99854 TO YIELD 5619 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 30 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO BEST BUY CO 150 MILLION ISSUE OF SENIOR SUBORDINATED NOTES DUE OCT 1 2000 PRICED AT PAR TO YIELD 8625 THE NOTES CALLABLE IN FIVE YEARS WERE PRICED AT A SPREAD OF 371 BASIS POINTS ABOVE TREASURYS RATED BA3 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PENNZOIL CO 435 MILLION DEBENTURES EXCHANGEABLE AT THE OPTION OF THE HOLDERS INTO CHEVRON CORP COMMON STOCK THE CONVERTIBLE DEBENTURES HAVE AN ISSUE PRICE OF 100 AND A COUPON OF 475 AND ARE EXCHANGEABLE INTO CHEVRON STOCK AT 117625 PER SHARE THE DEBENTURES MATURE OCT 1 2003 AND WILL BE CALLABLE BEGINNING OCT 1 1998 THE UNDERWRITING IS BEING MANAGED IN THE US BY LEHMAN BROTHERS INC MERRILL LYNCH & CO AND SMITH BARNEY SHEARSON INC AND OUTSIDE THE US BY LEHMAN BROTHERS INTERNATIONAL MERRILL LYNCH INTERNATIONAL LTD AND SMITH BARNEY SHEARSON INC SOUTHWESTERN ELECTRIC POWER CO 125 MILLION OF FIRSTMORTGAGE BONDS IN TWO PARTS PRICED BY UNDERWRITERS LED BY MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 45 MILLION OF FIRSTMORTGAGE BONDS DUE APRIL 1 2000 WAS PRICED AS 525S AT 99755 TO YIELD 5295 THE BONDS NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 40 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 80 MILLION OF FIRSTMORTGAGE BONDS DUE OCT 1 2025 WAS PRICED AS 6875S AT 99293 TO YIELD 693 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 77 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE RATED DOUBLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P SOUTHWESTERN ELECTRIC IS A UNIT OF CENTRAL & SOUTH WEST CORP ILLINOIS 1505 MILLION GENERALOBLIGATION COLLEGESAVINGS BONDS PRICED BY A PRUDENTIAL SECURITIES INC GROUP THE ZEROCOUPON BONDS HAVE YIELDS THAT RANGE FROM 325 IN 1995 TO 535 IN 2014 AND 2015 MOODY'S RATED THE ISSUE DOUBLEA AND S&P ASSIGNED A DOUBLEAMINUS RATING FEDERAL HOME LOAN MORTGAGE CORP 1 BILLION OF MODIFIABLE AND COMBINABLE REALESTATE MORTGAGE SECURITIES OFFERED BY FOUR UNDERWRITERS THE OFFERING GOLD MAC SERIES 155 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES UNDERWRITERS INCLUDE LEHMAN BROTHERS INC FIRST BOSTON CORP PRUDENTIAL SECURITIES INC AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP BAYERISCHE LANDESBANK GERMANY 100 MILLION CANADIAN DOLLARS OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE NOV 3 2003 AT ISSUE AND REOFFER PRICE 9978 VIA MERRILL LYNCH INTERNATIONAL LTD AND WOOD GUNDY INC INTEREST PAYABLE QUARTERLY AT THREEMONTH CANADIAN BANKERS' ACCEPTANCE RATE LESS 30 BASIS POINTS MINIMUM COUPON 6 MAXIMUM 9 FEES 05 FRANCE TELECOM FRANCE TWO BILLION FRENCH FRANCS OF 625 EUROBONDS DUE NOV 3 2006 AT ISSUE AND REOFFER PRICE 9853 VIA CREDIT COMMERCIAL DE FRANCE BONDS YIELD 642 A SPREAD OF 16 BASIS POINTS ABOVE INTERPOLATED YIELD CURVE BETWEEN FRENCH TREASURY NOTES OF 2004 AND 2008 FEES 035 GMAC AUSTRALIA FINANCE LTD US PARENT 50 MILLION AUSTRALIAN DOLLARS OF 725 EUROBONDS DUE NOV 16 1998 AT ISSUE PRICE 10155 VIA HAMBROS BANK LTD BONDS YIELD 733 AT 99675 BREAKEVEN PRICE FOR COMANAGERS GUARANTOR GENERAL MOTORS ACCEPTANCE CORP FEES TWO LESS 0125 DEDUCTED FOR LEAD MANAGER SWEDEN SOVEREIGN ONE BILLION FRENCH FRANCS OF 645 EUROBONDS DUE OCT 28 2003 AT ISSUE AND REOFFER PRICE PAR VIA CREDIT COMMERCIAL DE FRANCE BONDS YIELD 645 CALLABLE AT PAR ON OCT 28 1995 AND ANNUALLY THEREAFTER FEES 0325 TELECOM ARGENTINA STETFRANCE TELECOM SA ARGENTINA 500 MILLION OF 8375 EUROBONDS DUE OCT 18 2000 AT ISSUE AND REOFFER PRICE 994 VIA CHASE INVESTMENT BANK LTD BONDS YIELD 849 A SPREAD OF 348 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 1125 INTEREST PAYABLE SEMIANNUALLY WOODFIELD FINANCE CORP US 172 MILLION OF EXTENDABLE FLOATINGRATE EURONOTES DUE OCT 13 1998 AT ISSUE PRICE PAR VIA JP MORGAN SECURITIES LTD INTEREST PAYABLE QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS PLUS 50 BASIS POINTS BONDS CALLABLE ON EACH COUPON PAYMENT DATE AT 10025 FOR FIRST TWO YEARS AND THEREAFTER AT PAR IF ISSUER UNABLE TO REFINANCE BONDS AT MATURITY THEN BONDHOLDERS MAY VOTE TO EXTEND MATURITY BY FIVE YEARS IF MATURITY EXTENDED COUPON WILL STEP UP TO THREEMONTH LIBOR PLUS 150 BASIS POINTS AND SAME CALL OPTIONS WILL APPLY FEES UNDISCLOSED 9310050053 931005 MARKETING & MEDIA MARKETSCAN SALES OF PRIVATELABEL GOODS KEEP RISING BY KATHLEEN DEVENY SALES OF PRIVATELABEL PRODUCTS KEEP GROWING DESPITE BIG MARKETERS' DEFENSIVE MANEUVERS EMBATTLED MAKERS OF BRANDNAME GOODS MOST NOTABLY PHILIP MORRIS COS AND PROCTER & GAMBLE CO MADE HEADLINES THIS YEAR BY CHOPPING PRICES OF SOME OF THEIR FLAGSHIP BRANDS IN AN EFFORT TO FEND OFF NONAME RIVALS MANY OTHER MARKETERS FROM JOHNSON & JOHNSON TO HJ HEINZ CO HAVE RESPONDED BY SPENDING MORE ON PROMOTIONS AND ADVERTISING OR BY SPINNING OUT NEW PRODUCTS MEANT TO GIVE THEM A CLEAR QUALITY ADVANTAGE YET SUPERMARKET SALES OF PRIVATELABEL GOODS CONTINUED TO RISE IN THE SECOND QUARTER FROM A YEAR EARLIER SALES OF PRIVATELABEL GOODS GREW 26 TO 742 BILLION DURING THE 13 WEEKS ENDED JULY 4 WHILE UNIT VOLUME INCREASED 14 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE MEANWHILE TOTAL SUPERMARKET SALES INCHED UP ONLY 01 AND UNIT VOLUME DECLINED SLIGHTLY PRIVATELABEL ACCOUNTED FOR 148 OF TOTAL DOLLAR SALES AND 198 OF ALL ITEMS SOLD IN GROCERY STORES SHOPPERS ARE INCREASINGLY CONVINCED THAT THERE IS NO DIFFERENCE BETWEEN NATIONAL BRANDS AND STORE BRANDS SAYS JUDITH LANGER A CONSUMERBEHAVIOR EXPERT IN NEW YORK LOWERING THE PRICE DOESN'T COUNTER THAT BELIEF THERE REALLY HAS BEEN NOTHING DONE BY MANUFACTURERS TO COUNTER THE IDEA THAT IT ISN'T THE SAME THING IN A DIFFERENT PACKAGE CERTAINLY THE BIGGEST CATEGORIES FOR PRIVATELABEL GOODS WHICH INCLUDE SUCH COMMODITY ITEMS AS MILK BREAD AND ICE CREAM STILL ACCOUNT FOR THE BULK OF ALL PRIVATELABEL SALES THE GROCERY MANUFACTURERS OF AMERICA INC A TRADE ASSOCIATION FOR GROCERYPRODUCT MAKERS SAYS THOSE CATEGORIES ACCOUNT FOR MUCH OF PRIVATELABELS GROWTH THE ORGANIZATION ALSO CONTENDS THAT PRIVATELABEL SALES HAVE GROWN DURING THE LINGERING ECONOMIC SLUMP BUT WILL RECEDE WHEN GOOD TIMES RETURN I WOULD SAY THAT THE GROWTH IN PRIVATE LABEL HAS BEEN GREATLY OVERSTATED SAYS JEFFREY NEDELMAN A SPOKESMAN FOR THE GROCERY MANUFACTURERS GROUP NATIONAL BRANDS WILL CONTINUE TO OFFER CONSUMERS THE BEST VALUE IN EVERY AISLE EVERY DAY OF THE WEEK BUT NOWADAYS THE FASTEST GROWING STORE BRANDS ARE HIGHERPROFIT MARGIN PRODUCTS SALES OF PRIVATELABEL ICEDTEA DRINKS FOR INSTANCE SOARED 5097 DURING THE QUARTER WHILE SALES OF REFRIGERATED PASTAS GREW 769 SALES OF PRIVATELABEL MEXICAN SAUCES INCLUDING SALSA JUMPED 637 WHAT'S MORE THERE IS SOME EVIDENCE BUYERS OF SUCH DEVELOPING PRIVATELABEL CATEGORIES AS BOTTLED WATER AND MOUTHWASH DIFFER SIGNIFICANTLY FROM HEAVY USERS OF MORE USUAL PRIVATELABEL ITEMS SUCH AS SUGAR OR CANNED VEGETABLES ACCORDING TO A RECENT STUDY BY INFORMATION RESOURCES THE NEW BREED TENDS TO BE A BIT MORE UPSCALE WITH AVERAGE HOUSEHOLD INCOME RANGING FROM 25000 TO 55000 THE SHOPPERS ARE ALSO SLIGHTLY OLDER THAN THE USUAL PRIVATELABEL BUYERS TYPICALLY IN THEIR 30S THERE HAS BEEN A GUY OUT THERE SELLING PRODUCTS LIKE PRIVATELABEL SUGAR FOR A LONG TIME SAYS BRIAN SHAROFF PRESIDENT OF THE PRIVATE LABEL MANUFACTURERS ASSOCIATION RETAILERS ARE BEGINNING TO GO PRIVATE LABEL WITH MORE VALUEADDED PRODUCTS NONETHELESS EVEN MR SHAROFF CONCEDES THE GROWTH OF STORE BRANDS HAS SLOWED SHARPLY FROM THE BOOM YEARS BETWEEN 1988 AND 1992 UNIT SALES IN SUPERMARKETS OF PRIVATELABEL PRODUCTS INCREASED 9 IN THE SECOND QUARTER OF 1990 FROM THE YEAREARLIER PERIOD FOR EXAMPLE ANALYSTS SAY MARKETERS' PRICE CUTS MAY HAVE SLOWED PRIVATELABEL GAINS IN SOME CATEGORIES WHAT'S MORE MANY MAKERS OF PRIVATELABEL FOOD PRODUCTS ARE SMALL NICHE PLAYERS AND ADEQUATE SUPPLIES OF MANY PRODUCTS AREN'T AVAILABLE TO RETAILERS AS MORE PRIVATELABEL MANUFACTURERS COME ON THE SCENE AND THEY BECOME MORE SOPHISTICATED I THINK YOU'LL SEE MORE STOREBRANDS ON SUPERMARKET SHELVES SAYS EDWARD F COMEAU AN ANALYST WHO FOLLOWS SUPERMARKETS FOR LEHMAN BROTHERS HIS FORECAST PRIVATELABEL SALES WILL CONTINUE TO INCH UP CONSUMER EXPERTS AGREE THEY SAY GOOD PUBLICITY ABOUT THE IMPROVING QUALITY OF PRIVATELABEL PRODUCTS IS HELPING FUEL THE TREND CONSUMER REPORTS FOR EXAMPLE RATED 25 PACKAGED BRANDS OF CHOCOLATE CHIP COOKIES IN ITS OCTOBER ISSUE THE MAGAZINE'S TASTETESTERS RATED THE COOKIES ON TEXTURE FLAVOR AND EVEN THE NUMBER OF CHIPS TWO OF THE THREE MOST HIGHLY RATED COOKIES WERE STORE BRANDS PRESIDENT'S CHOICE MARKETED BY CANADA'S LOBLAW COS WAS RATED NO 1 AND SAM'S AMERICAN CHOICE MARKETED BY WALMART STORES INC RANKED NO 3 9310050052 931005 ABREAST OF THE MARKET SHARES END MIXED ANALYST SEES RUSSIAN CRISIS AIDING US STOCKS BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES FINISHED MIXED AS THE BLOODY POLITICAL SHOWDOWN IN RUSSIA ENDED THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 335 POINTS TO 357776 STANDARD & POOR'S 500STOCK INDEX ADDED 005 TO 46134 AND THE NASDAQ COMPOSITE INDEX JUMPED 161 TO 76484 HITTING ANOTHER NEW HIGH VOLUME ON THE NEW YORK STOCK EXCHANGE FELL TO 2258 MILLION SHARES FROM 2568 MILLION SHARES FRIDAY ADVANCING ISSUES OUTPACED DECLINERS 1149 TO 878 STOCKS TURNED IN A MUTED PERFORMANCE DESPITE THE CONCERNS OVER THE WEEKEND THAT THE VIOLENT CLASHES IN RUSSIA WOULD JAR THE FINANCIAL MARKETS BUT EVEN THOUGH VIVID FOOTAGE OF THE FIGHTING IN RUSSIA DOMINATED TELEVISION SCREENS SUNDAY BY THE TIME TRADERS ARRIVED AT THEIR DESKS TO BEGIN THE WORKWEEK THE TENSIONS IN RUSSIA APPEARED TO BE EBBING BY 11 AM EDT RUSSIAN HARDLINE LEADERS VICE PRESIDENT ALEXANDER RUTSKOI AND PARLIAMENT SPEAKER RUSLAN KHASBULATOV WHO HAD MOUNTED THE CHALLENGE AGAINST RUSSIAN PRESIDENT BORIS YELTSIN HAD SURRENDERED THE MARKETS WERE CALMED BY MR YELTSIN'S APPARENT SUCCESS SAYS WAYNE NORDBERG A PARTNER AT LORD ABBETT GAIL DUDACK STOCK MARKET STRATEGIST AT SG WARBURG SAID THAT SHE SUSPECTED THAT THE CRISIS IN RUSSIA WOULD TURN OUT TO BE A NONEVENT FOR THE FINANCIAL MARKETS THE ONLY THING THAT COULD HAVE MADE RUSSIA A MARKET FACTOR IS THAT IF IT HAD GONE ON FOR A WHILE WITHOUT A RESOLUTION SAID MS DUDACK MS DUDACK NOTED THAT RUSSIA IS A RELATIVELY INSIGNIFICANT TRADING PARTNER OF THE US SO THE ONLY FEAR AMONG US INVESTORS IS IF THERE IS A PROTRACTED STRUGGLE THAT WOULD REQUIRE US INVOLVEMENT AND THUS JEOPARDIZE THE PROSPECT OF A PEACE DIVIDEND FURTHER STRAINING THE US BUDGET MS DUDACK SAID SHE THINKS THE FALLOUT FROM THE RUSSIAN CRISIS WILL BE POSITIVE AT LEAST FOR THE US STOCK MARKET THE INSTABILITY IN RUSSIA CREATED A SHAKEOUT IN THE MARKET SHE SAYS WHICH IS LIKELY TO BE A PLATFORM FOR A RALLY THIS MONTH IN US MARKETS TAKEOVER NEWS IN ADDITION TO THE BIDDING FOR PARAMOUNT COMMUNICATIONS ADDED EXCITEMENT TO THE MARKET AS ACQUISITIONS WERE MADE IN THE HEALTHCARE AND BANKING INDUSTRIES HCAHOSPITAL CORP OF AMERICA TOPPED THE BIG BOARD'S MOST ACTIVE LIST GAINING 6 1/8 TO 28 7/8 ON 65 MILLION SHARES THE NASHVILLE TENN COMPANY AGREED TO BE ACQUIRED BY COLUMBIA HEALTHCARE FORT WORTH TEXAS WHOSE SHARES SANK 1 3/8 TO 28 7/8 OTHER HOSPITALRELATED STOCKS ADVANCED FOLLOWING NEWS OF THE HCA AGREEMENT HEALTHTRUST JUMPED 2 1/8 TO 24 3/4 UNIVERSAL HEALTH SERVICES CLASS B SHARES GAINED 1 1/4 TO 17 7/8 AND AMERICAN MEDICAL HOLDINGS ADDED 1/4 TO 16 IN THE BANKING SECTOR KEYCORP FELL 1 TO 37 1/2 AND SOCIETY CORP WAS UNCHANGED AT 32 1/2 AFTER THE COMPANIES SAID THEY HAD AGREED TO MERGE THE COMBINATION OF KEYCORP ALBANY NY AND SOCIETY CLEVELAND WILL CREATE THE 10THLARGEST US BANKING COMPANY WITH 579 BILLION IN ASSETS SHARES OF PARAMOUNT MEANWHILE ADDED 3/4 TO 78 1/2 LATE IN THE DAY NYNEX CONFIRMED A WALL STREET JOURNAL REPORT THAT IT WOULD MAKE A MAJOR INVESTMENT IN VIACOM ONE OF TWO COMPANIES THAT HAVE BID FOR PARAMOUNT NYNEX WHOSE SHARES FELL 3/8 TO 46 WILL BUY 12 BILLION IN VIACOM PREFERRED STOCK ONLY PARAMOUNT TRADED AFTER THE NYNEX ANNOUNCEMENT VIACOM WAS UNCHANGED AT 58 ON THE AMERICAN STOCK EXCHANGE WHILE SHARES OF QVC NETWORK THE OTHER SUITOR SKIDDED 2 1/4 TO 55 3/4 ON NASDAQ MARK IV DROPPED 2 1/8 TO 23 5/8 AFTER PAINEWEBBER ANALYST MATTHEW DESERIO DOWNGRADED THE STOCK TO NEUTRAL FROM BUY CITING ITS RECENT SHARE PRICE GAINS HE NOTED THAT THE AMHERST NY CONCERN'S STOCK HAS RISEN MORE THAN TRIPLE IN THE PAST TWO YEARS PHILLIPS PETROLEUM INCREASED 1 3/4 TO 36 7/8 ANADARKO PETROLEUM CLIMBED 3 1/2 TO 51 3/4 AND AMOCO ADVANCED 1/8 TO 58 5/8 THE COMPANIES SAID THEIR RECENTLY ANNOUNCED OIL AND GAS FIND OFFSHORE OF LOUISIANA HAS TESTED AT A GREATER FLOW THAN THEY ORIGINALLY DISCLOSED MANY OILRELATED STOCKS EASED THE GROUP RACED HIGHER LATE LAST WEEK FIRST ON INDICATIONS THAT CRUDE OIL PRICES MIGHT RISE AND THEN ON REPORTS THAT PRESIDENT CLINTON PLANS TO PROPOSE SEVERAL INITIATIVES THAT WILL BENEFIT THE OIL AND GAS INDUSTRY CHEVRON FELL 2 TO 96 3/8 TEXACO FELL 3/4 TO 68 1/8 DRESSER INDUSTRIES EASED 5/8 TO 22 AND BAKER HUGHES SHED 5/8 TO 23 7/8 MANY TECHNOLOGY STOCKS ADVANCED COMPAQ COMPUTER GAINED 1 1/8 TO 58 7/8 TEXAS INSTRUMENTS ADDED 2 1/4 TO 75 3/8 AND INTERNATIONAL BUSINESS MACHINES ADDED 3/8 TO 44 1/4 ARNOLD OWEN MANAGING DIRECTOR OF TRADING AT SOUNDVIEW FINANCIAL GROUP SAID PORTFOLIO MANAGERS WERE BUYING SHARES OF RECENTLY DEPRESSED STOCKS SUCH AS IBM BIG BLUE'S SHARES SOARED 1 7/8 FRIDAY TANDEM COMPUTERS GAINED 5/8 TO 13 AFTER SALOMON BROTHERS UPGRADED ITS RATING ON THE CUPERTINO CALIF CONCERN'S STOCK TO BUY FROM HOLD LUBRIZOL CLIMBED 1 TO 34 3/4 THE WICKLIFFE OHIO SPECIALTY CHEMICAL PRODUCER DISCLOSED PLANS FOR A REORGANIZATION THAT WILL CUT ITS COSTS BY 50 MILLION ANNUALLY BY 1996 BECAUSE OF THE MOVE THOUGH THE COMPANY WILL TAKE A PRETAX CHARGE OF 86 MILLION FOR THE THIRD QUARTER AND CUT ITS WORK FORCE 9310050051 931005 TECHNOLOGY BRIEF NOVELL INC NEW SERVICES AND PRODUCTS SET FOR COMPUTER NETWORKS NOVELL INC PROVO UTAH ANNOUNCED A BROAD SET OF SERVICES AND PRODUCTS DESIGNED TO MAKE IT EASIER TO MANAGE COMPLEX COMPUTER NETWORKS THE COMPANY SAID NOVELL DISTRIBUTED MANAGEMENT SERVICES WILL ALLOW CENTRALIZED TROUBLESHOOTING OF NETWORK DEVICES AND SOFTWARE INCLUDING THOSE BASED ON NOVELL'S NETWARE OPERATING SYSTEMS AS WELL AS COMPETING TECHNOLOGIES NETWARE NAVIGATOR 30 ONE OF FOUR NEW PRODUCTS ALLOWS COMPUTER MANAGERS TO CENTRALLY DISTRIBUTE AND INSTALL SOFTWARE ON DESKTOP AND MIDRANGE COMPUTERS THROUGHOUT A CORPORATION NOVELL'S NEW THRUST IS EXPECTED TO CHALLENGE WINDOWS NT A NEW OPERATING SYSTEM FROM MICROSOFT CORP THAT IS DESIGNED TO WORK WITH NETWORKS OF DESKTOP COMPUTERS NOVELL'S OFFERINGS ARE DESIGNED TO LET OTHER SOFTWARE COMPANIES TAILOR THEIR OWN PRODUCTS TO WORK WITH THE NOVELL NETWORK MANAGEMENT SERVICES 9310050050 931005 MARKETING BRIEF NEW YORK TIMES CO LOS ANGELES JURY AWARDS 75 MILLION IN LIBEL CASE A STATE COURT JURY IN LOS ANGELES ORDERED NEW YORK TIMES CO TO PAY 75 MILLION TO A CALIFORNIA BUSINESSMAN FOR LIBELING HIM IN A 1988 ARTICLE PUBLISHED IN THE COMPANY'S SANTA BARBARA NEWSPRESS NEWSPAPER LEONARD M ROSS OF BEVERLY HILLS CALIF ACCUSED THE PUBLISHING COMPANY THE NEWSPAPER REPORTER KATHLEEN SHARP AND EDITOR DAVID MCCUMBER WITH WRONGLY LINKING HIM TO A FEDERAL FRAUD INVESTIGATION OF A FORMER BUSINESS PARTNER THE JURY AWARDED MR ROSS 5 MILLION FOR DAMAGE TO HIS REPUTATION AND 25 MILLION FOR EMOTIONAL DISTRESS THE PANEL DIDN'T AWARD ANY PUNITIVE DAMAGES AFTER RULING THAT THE DEFENDANTS DIDN'T ACT WITH MALICE MR ROSS HAD SOUGHT 15 MILLION REX HEINKE THE LAWYER FOR NEW YORK TIMES CO AND THE OTHER DEFENDANTS SAID HE PLANS TO FILE A MOTION FOR A NEW TRIAL THE DEFENDANTS ARGUED THAT THE PUBLISHED STATEMENTS WERE TRUE WEREN'T LIBELOUS AND WEREN'T PUBLISHED NEGLIGENTLY MR HEINKE SAID 9310050049 931005 BUSINESS BRIEF NATIONAL INTERGROUP INC EXCHANGE OFFER IS PLANNED FOR UP TO 6 MILLION SHARES NATIONAL INTERGROUP INC SAID IT PLANS TO BEGIN AN EXCHANGE OFFER FOR UP TO SIX MILLION COMMON SHARES OR 304 OF ITS COMMON SHARES OUTSTANDING UNDER THE OFFER THE DALLAS HOLDING COMPANY SAID IT WOULD EXCHANGE ONE SHARE OF A NEW SERIES OF PREFERRED STOCK WITH A LIQUIDATION PREFERENCE OF 40 FOR EVERY TWO COMMON SHARES IF MORE THAN SIX MILLION SHARES ARE TENDERED THE SHARES WILL INITIALLY BE ACCEPTED FROM HOLDERS OF 99 OR FEWER SHARES AND THEN FROM ALL HOLDERS ON A PRO RATA BASIS ABBEY BUTLER COCHAIRMAN AND COCHIEF EXECUTIVE SAID THE EXCHANGE WASN'T AN ATTEMPT TO BOOST THE COMPANY'S STOCK PRICE NATIONAL INTERGROUP'S STOCK PRICE HAS REMAINED RELATIVELY FLAT IN RECENT MONTHS TRADING BETWEEN 1225 A SHARE AND 14875 A SHARE SINCE JAN 1 IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY ITS SHARES CLOSED AT 1425 UP 50 CENTS 9310050048 931005 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY LUCINDA HARPER LAYOFF SURVIVORS GET SOME ATTENTION FROM THEIR RESTRUCTURED FIRMS SUPPORT PROGRAMS FOR LAIDOFF WORKERS ARE COMMONPLACE BUT EMPLOYEES WHO ESCAPE CUTBACKS NEED HELP TOO AT PITTSBURGHBASED ALUMINUM CO OF AMERICA WHICH HAS HAD THREE STAFF CUTBACKS IN 18 MONTHS CHAIRMAN PAUL O'NEILL HAS HOSTED FOUR LUNCHEONS WITH SURVIVING STAFFERS TO LISTEN TO THEIR CONCERNS A SPOKESMAN SAYS THE SESSIONS LIMITED TO 30 PEOPLE HAVE BEEN OVERSUBSCRIBED TRANSCRIPTS ARE SENT OUT VIA EMAIL EMPLOYEES WHO ARE SPARED LAYOFFS SUFFER LOW MORALE DECLINING PRODUCTIVITY ANXIETY AND DISTRUST SAYS ROBERT LEWIS EXECUTIVE VICE PRESIDENT OF DBM TRAINING AND CONSULTING A UNIT OF NEW YORK CONSULTANT DRAKE BEAM MORIN ONE DRAKE STRATEGY CREATE 15MEMBER TRANSITION TEAMS REPRESENTING EMPLOYEES RANGING FROM SECRETARIES TO SENIOR MANAGERS TO COMMUNICATE POSTLAYOFF DEVELOPMENTS TO OTHER WORKERS MILES TO GO MOST OFFICIALS AT RESTRUCTURED COMPANIES FEEL THEY CAN DO MORE TO HELP REMAINING WORKERS A SURVEY BY THE CENTER FOR CREATIVE LEADERSHIP IN GREENSBORO NC FINDS HOMEWORK STARTS TO COUNT FOR ADULTS TOO HOUSEHOLD CHORES TAKE UP A LOT OF PRODUCTIVE TIME BUT HAVE BEEN VIRTUALLY IGNORED BY ECONOMISTS ANALYSTS AT THE MINNEAPOLIS FEDERAL RESERVE BANK ARE BEGINNING TO TAKE NOTICE THOUGH IN SOME CASES THEIR THEORETICAL MODELS PREDICT THE UPS AND DOWNS OF THE US ECONOMY MUCH BETTER IF THEY INCLUDE DETAILED INFORMATION ABOUT THE HOUSEHOLD SECTOR REPORTS THE LATEST ISSUE OF THE BANK'S QUARTERLY REVIEW THE MODELS GAUGE RESOURCES AMERICANS INVEST IN HOME ACTIVITIES FROM TIME SPENT ON CHORES TO MONEY SPENT ON CAPITAL GOODS SUCH AS REFRIGERATORS WHILE THE MODELS MUST BE HONED ANALYSTS ARE CONFIDENT THEY WILL WORK BETTER THAN CONVENTIONAL ONES BECAUSE THEY REFLECT HOW PEOPLE JUGGLE HOUSEHOLD AND MARKET ACTIVITIES IN RESPONSE TO CHANGES IN THE ECONOMY WORKPLACE DISPUTES LOOM LARGE ON THE SUPREME COURT'S DOCKET TODAY THE JUSTICES WILL HEAR A CASE STEMMING FROM THE CONFLICT BETWEEN FEDERAL SAFETY AND LABOR LAWS MINERS AT NONUNION THUNDER BASIN COAL CO IN WYOMING INVOKED MINESAFETY LAW IN CHOOSING TWO UNITED MINE WORKERS REPRESENTATIVES TO ATTEND SAFETY INSPECTIONS THUNDER BASIN CLAIMED THAT LABORRELATIONS LAW GIVES IT THE RIGHT TO EXCLUDE UNION REPRESENTATIVES FROM ITS PROPERTY THE CLINTON ADMINISTRATION OPPOSES THE COAL COMPANY YESTERDAY THE HIGH COURT HEARD ARGUMENTS ON WHETHER EXECUTIVES OF FAILED FINANCIAL INSTITUTIONS MAY FILE LAWSUITS SEEKING MONETARY DAMAGES AGAINST FEDERAL REGULATORY AGENCIES THAT OUST THEM THE RULING WILL BE OF INTEREST TO SENIOR SAVINGSANDLOAN EXECUTIVES WHO GOT THE BOOT AFTER THE GOVERNMENT TOOK OVER THEIR FORMER EMPLOYERS ANOTHER UPCOMING CASE INVOLVES WHETHER THE UMW MUST PAY 52 MILLION IN CONTEMPT FINLENT STRIKE IN VIRGINIA US WORKERS STAY UNEMPLOYED FOR A FAR SHORTER AMOUNT OF TIME THAN EUROPEAN WORKERS ACCORDING TO THE NATIONAL BUREAU OF ECONOMIC RESEARCH IN 1991 6 OF JOBLESS AMERICANS WERE OUT OF WORK FOR A YEAR OR MORE COMPARED WITH 37 IN FRANCE AND 51 IN SPAIN ONE POSSIBLE REASON MANY EUROPEAN COUNTRIES HAVE GENEROUS BENEFITS MIND YOUR OWN BUSINESS A NEW LOUIS HARRIS SURVEY SHOWS 53 OF AMERICANS ARE VERY CONCERNED ABOUT THEIR PRIVACY THE FIRST TIME IN 23 YEARS A MAJORITY HAS TAKEN THAT STANCE MANY SAY THEY WOULD PREFER TO DO BUSINESS WITH A COMPANY THAT PROTECTS THEIR PRIVACY BANKS HEALTHINSURANCE COMPANIES AND HOSPITALS TOP THE LIST OF BUSINESSES WHERE AMERICANS MOST FEEL THEIR PRIVACY SHOULD BE PROTECTED WANTED MARKETING EXECS A SURVEY OF 120 MAJOR US CORPORATIONS BY EXECUTIVE SEARCH FIRM CHRISTIAN & TIMBERS INC FOUND THAT THE NUMBER OF SEARCHES BEING CONDUCTED FOR MARKETING EXECUTIVES HAS DOUBLED OVER THE PAST YEAR TELECOMMUNICATIONS AND COMPUTERMANUFACTURING FIRMS REPORT THE BIGGEST NEED BUSINESS TRAVEL CAN BE ROUGH ON AN EMPLOYEE'S PERSONAL LIFE TENNECO INC IN HOUSTON REIMBURSES FOR CHILDCARE EXPENSES WHEN EMPLOYEES HAVE TO BE OUT OF TOWN AND THEIR SPOUSES AREN'T AROUND DIANE FREELAND WHO MANAGES TENNECO'S PROGRAM SAYS FEWER THAN 1 OF ITS WORKERS HAVE USED THE PROGRAM BUT IT IS A USEFUL RECRUITING TOOL MANAGEMENT CONSULTANT ARTHUR D LITTLE IN CAMBRIDGE MASS ALLOWS EMPLOYEES TIME OFF EITHER BEFORE OR AFTER LONG TRIPS CHICAGOBASED AMOCO CORP SUPPLIES LIGHTWEIGHT MINIATURIZED BREAST PUMPS TO NURSING MOTHERS WHO MUST TRAVEL PREVIOUSLY NURSING WOMEN HAD TO CARRY AROUND MUCH HEAVIER MACHINES THE COMPANY ALSO PAYS UP TO 750 A YEAR FOR CHILDCARE AND DEPENDENTCARE SERVICES NEEDED WHEN AN EMPLOYEE IS ON THE ROAD MANAGEMENT CONSULTANT PITTIGLIO RABIN TODD & MCGRATH IN WESTON MASS SAYS GIVING TRAVELING WORKERS EVERY OTHER MONDAY OR FRIDAY OFF HELPED CUT TURNOVER TO 5 FROM ABOVE 10 LAST YEAR THE CHECKOFF SALESWOMEN ARE MOTIVATED BY NEW WARDROBES BUT SALESMEN WOULD PREFER BIGSCREEN TELEVISIONS AS SALES AWARDS BUSINESS & INCENTIVES STRATEGIES MAGAZINE FINDS A REAL HEAD START A STUDY OF THE HEAD START PROGRAM FINDS THAT BLACK AND WHITE CHILDREN WHO ATTEND ARE LIKELY TO BE TALLER THAN THEIR SIBLINGS 9310050047 931005 POLITICS & POLICY HEAVY US TOLL DEEPENS DEBATE ON SOMALIA ROLE OPPOSITION IN CONGRESS RISES AFTER 12 DIE IN RAID MORE FORCES ARE SENT BY THOMAS E RICKS AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON AN URBAN FIREFIGHT THAT MORE THAN DOUBLED US COMBAT LOSSES IN SOMALIA PROMISES TO BRING TO A CRISIS POINT THE DEBATE OVER WHETHER THE US SHOULD SIMPLY WITHDRAW FROM THE EAST AFRICAN COUNTRY IN THE EIGHTHOUR BATTLE SUNDAY ELITE US INFANTRY FORCES SUFFERED 12 DEAD 78 WOUNDED AND A HANDFUL MISSING IN ACTION AND PRESUMABLY CAPTURED OFFICIALS SAID SENATE ARMED SERVICES COMMITTEE MEMBERS BRIEFED BY THE PENTAGON LAST NIGHT COMPLAINED OF THE UNUSUAL SEVENHOUR DELAY THAT OCCURRED BEFORE UN FORCES RESCUED A SMALL GROUP OF US TROOPS PINNED DOWN UNDER HEAVY FIRE IN CENTRAL MOGADISHU WITHOUT ANY ARMORED PROTECTION BUT A SENIOR PENTAGON OFFICIAL REJECTED THAT CRITICISM SAYING FRANKLY THEY DID A PRETTY GOOD JOB OF KEEPING THIS FROM BEING A BIGGER DISASTER THAN IT WAS REACTING TO THE LOSSES PRESIDENT CLINTON AND ADMINISTRATION OFFICIALS REAFFIRMED THEIR GOAL OF ENDING THE US MISSION AS SOON AS POSSIBLE BUT THEY ALSO BEEFED UP US FORCES IN SOMALIA AND THREATENED TO RETALIATE IF CAPTURED US SOLDIERS ARE MISTREATED WE HAVE ISSUED THE STERNEST POSSIBLE WARNING THAT IF ANYTHING HAPPENS TO THEM THE UNITED STATES NOT THE UNITED NATIONS THE UNITED STATES WILL VIEW THIS MATTER VERY GRAVELY AND WILL TAKE APPROPRIATE ACTION MR CLINTON SAID THE REPORTS OF NEW CASUALTIES PROVOKED STRONG CRITICISM IN CONGRESS CHAIRMAN ROBERT BYRD OF THE SENATE APPROPRIATIONS COMMITTEE SAID LAST NIGHT HE WILL SEEK TO FORCE A WITHDRAWAL OF US TROOPS BY CUTTING OFF MONEY FOR THE SOMALIA MISSION MR BYRD DIDN'T GIVE A PRECISE DATE AT WHICH HE WANTS FUNDING TERMINATED BUT SIGNALED CLEARLY HIS DETERMINATION TO FORCE A DEBATE ON THE ISSUE WHEN THE PENTAGON BUDGET COMES TO THE FLOOR LATER THIS WEEK AS REPORTED YESTERDAY BY THE SENATE PANEL THE 239 BILLION MILITARY BUDGET INCLUDES NONE OF THE 448 MILLION SOUGHT BY THE CLINTON ADMINISTRATION AS A CONTINGENCY FUND FOR FUTURE PEACEKEEPING OPERATIONS BUT MR BYRD'S AMENDMENT WOULD GO FURTHER BY IMPOSING A STRICT LIMITATION TO BAR THE PENTAGON FROM USING STANDARD OPERATING FUNDS FOR EXAMPLE TO SUPPORT THE SOMALIA MISSION I BELIEVE WE SHOULD DISENGAGE OUR FORCES AND DECLARE THE US CONTRIBUTION TO THIS UN EXTRAVAGANZA OVER THE CHAIRMAN SAID IN AN EARLIER FLOOR STATEMENT THE ENDGAME OF US PARTICIPATION IN SOMALIA SHOULD BE MEASURED IN DAYS AND WEEKS NOT MONTHS OR YEARS ARMED SERVICES COMMITTEE CHAIRMAN SAM NUNN ENDORSED THE DECISION TO DEPLOY US ARMOR TO HELP PROTECT AMERICAN FORCES BUT WHILE HESITANT TO SET A FIXED DATE FOR WITHDRAWAL THE CHAIRMAN A DEMOCRAT FROM GEORGIA SAID THE UN IS GOING TO HAVE TO RETHINK ITS POSITION AND DEVELOP AN EXIT STRATEGY THE PENTAGON SAID IT IS DEPLOYING FOUR M1/A1 HEAVY TANKS 14 BRADLEY FIGHTING VEHICLES TWO AC130 SPECIAL OPERATIONS ARTILLERY GUNSHIPS AND SOME HELICOPTERS TO REPLACE THOSE SHOT DOWN SUNDAY THE 200 ADDITIONAL PERSONNEL WILL BRING THE TOTAL US MILITARY PRESENCE IN SOMALIA CLOSE TO 5000 THE NEW EQUIPMENT WILL PERMIT US FORCES TO MOVE ABOUT MORE EASILY AT NIGHT AND TO CLEAR MINES WITHOUT FEAR OF SNIPERS OFFICIALS SAID EVENTS ON SUNDAY IN SOMALIA BEGAN PENTAGON OFFICIALS SAID WITH INTELLIGENCE THAT A GROUP OF AIDES TO MOHAMED AIDID THE SOMALI WARLORD WITH WHOM UN FORCES IN SOMALIA ARE WAGING AN UNDECLARED WAR WERE MEETING AT THE OLYMPIC HOTEL IN DOWNTOWN MOGADISHU US FORCES SWOOPED DOWN ON THE SITE AND DETAINED 19 SOMALIS INCLUDING TWO THOUGHT TO BE AMONG MR AIDID'S PRINCIPAL ADVISERS THE RAID STARTED TO GO WRONG WHEN TWO US UH60 BLACKHAWK HELICOPTERS HOVERING OVER THE SITE WERE SHOT DOWN A THIRD WAS HIT AND THEN FLEW ACROSS THE CITY TO A SAFE AREA WHERE IT CRASHLANDED AT ABOUT DUSK THE 90 US ARMY RANGERS PROTECTING THE HELICOPTER DOWNED NEAR THE HOTEL CAME UNDER ATTACK IN A FIREFIGHT THAT LASTED ABOUT EIGHT HOURS FINAL CASUALTY REPORTS HAVEN'T YET BEEN RECEIVED BUT MILITARY OFFICIALS SAID LAST NIGHT THAT THOSE 90 RANGERS TOOK ROUGHLY 70 CASUALTIES BEFORE THE FIREFIGHT ENDED AT ABOUT 2 AM MOGADISHU TIME THE FIGHTING FINALLY ENDED AFTER A MULTINATIONAL FORCE OF TROOPS FROM MALAYSIA PAKISTAN AND THE US WAS DISPATCHED ONE MALAYSIAN SOLDIER WAS KILLED IN THE ACTION OFFICIALS SAID ALL TOLD ABOUT 300 TO 400 US TROOPS WERE INVOLVED PENTAGON OFFICIALS WERE CIRCUMSPECT ABOUT THE MISSING US TROOPS PARTLY BECAUSE THEY AND OTHERS WERE WORRIED BY TELEVISED IMAGES OF CROWDS IN MOGADISHU REJOICING OVER THE US DEAD AND DISPLAYING A WOUNDED AMERICAN WHO APPARENTLY IS AN ARMY HELICOPTER PILOT THEY DECLINED TO DISCLOSE THE NUMBER LISTED AS MISSING EXCEPT TO SAY THAT IT IS A HANDFUL REFLECTING THOSE CONCERNS DEFENSE SECRETARY LES ASPIN IN A BRIEF TALK WITH REPORTERS AT THE PENTAGON ISSUED A CLEAR THREAT SAYING WE WILL RESPOND FORCEFULLY IF ANY HARM COMES TO THOSE WHO ARE DETAINED AS PART OF THE INTENSE REVIEW OF US OPTIONS IN SOMALIA NOW UNDER WAY MR ASPIN SUMMONED MARINE GEN JOSEPH HOAR CHIEF OF THE US CENTRAL COMMAND WHOSE AREA OF GEOGRAPHIC RESPONSIBILITY INCLUDES SOMALIA TO MEET WITH HIM IN WASHINGTON TODAY 9310050046 931005 INTERNATIONAL BRIEF BANQUE NATIONALE DE PARIS FRANCE BEGINS PRIVATIZATION WITH 4219ASHARE OFFER THE FRENCH GOVERNMENT OFFICIALLY LAUNCHED ITS PRIVATIZATION YESTERDAY OF BANQUE NATIONALE DE PARIS OR BNP WHICH IS EXPECTED TO ADD ABOUT 28 BILLION FRANCS 492 BILLION TO DEPLETED STATE COFFERS IT WILL BE THE LARGEST PRIVATIZATION EVER CONDUCTED IN FRANCE ECONOMICS MINISTER EDMOND ALPHANDERY SAID IT ALSO MARKS THE FIRST IN THE PLANNED SALE OF 21 STATEOWNED COMPANIES IN THE NEXT FEW YEARS MR ALPHANDERY SAID THE INITIAL OFFER PRICE OF 240 FRANCS 4219 A SHARE AVAILABLE FOR ONE WEEK STARTING TOMORROW IS FAIR AND REFLECTS THE BANK'S INTRINSIC VALUE IN THE MEDIUM TERM THE PRICE IS BELOW WHAT WE THOUGHT IT WOULD BE SAID ROMAIN BURNAND ANALYST AT COURCOUXBOUVET SA IT'S A WAY FOR THE GOVERNMENT TO START A LONG AND HARD PRIVATIZATION PROGRAM ON THE RIGHT FOOT ANALYSTS SURVEYED IN PARIS SAID THEY HAD PROJECTED AN INITIAL BNP SHARE PRICE ON THE ORDER OF 250 TO 265 FRANCS WHEN THE SHARES BEGIN QUOTATION ON THE BOURSE EXPECTED SOON AFTER THE INITIAL OFFER PERIOD ENDS MARKET WATCHERS PREDICT A QUICK 10 TO 15 PRICE APPRECIATION 9310050044 931005 INTERNATIONAL BRIEF PHILIPPINE AIRLINES TALKS UNDER WAY TO DELAY DELIVERY OF 4 AIRBUS JETS PHILIPPINE AIRLINES IS NEGOTIATING WITH AIRBUS INDUSTRIE TO DELAY DELIVERY NEXT YEAR OF FOUR AIRBUS A340 JETS INITIALLY ORDERED FOR USE ON THE CARRIER'S EUROPEAN ROUTES PAL AND AIRBUS OFFICIALS MET TWICE IN MANILA LAST MONTH TO DISCUSS DELAYING FOR ONE YEAR DELIVERY OF THE FOURENGINE LONGHAUL PLANES WHICH COST ABOUT 90 MILLION EACH SAID BIENVENIDO TAN A SENIOR PAL FINANCE EXECUTIVE THE PLANES ARE PART OF A FIRM ORDER FOR SIX A340S ON WHICH PAL ALREADY HAS MADE A 75 MILLION DOWN PAYMENT PAL PLANS TO CUT BACK ITS EUROPEAN TRAFFIC WHICH HAS BECOME A MONEYLOSER BUT AIRLINE ANALYSTS SAY THE CARRIER WOULD BE HARDPRESSED TO FIND SHORTERHAUL ASIAN ROUTES FOR THE A340S AIRBUS IS A CONSORTIUM OF AEROSPATIALE OF FRANCE DAIMLERBENZ AG'S DEUTSCHE AIRBUS GMBH UNIT BRITISH AEROSPACE PLC AND CONSTRUCCIONES AERONAUTICAS SA OF SPAIN 9310050043 931005 LAW US SUES 2 DENTAL OFFICES OVER AIDSRELATED BIAS WASHINGTON THE JUSTICE DEPARTMENT FILING ITS FIRST LAWSUITS TO HALT DISCRIMINATION AGAINST PEOPLE WITH AIDS SUED TWO DENTAL OFFICES THAT ALLEGEDLY REFUSED SERVICE TO INFECTED PATIENTS UNDER THE AMERICANS WITH DISABILITIES ACT WHICH PROHIBITS DISCRIMINATION BASED ON DISABILITY THE DEPARTMENT SEEKS COURT ORDERS REQUIRING THE DENTAL OFFICES IN HOUSTON AND NEW ORLEANS TO PROVIDE COMPLETE AND EQUAL TREATMENT TO PEOPLE WITH ACQUIRED IMMUNE DEFICIENCY SYNDROME AND COMPENSATORY DAMAGES FOR THREE MEN WHO WERE DENIED SERVICES OFFICIALS OF THE CASTLE DENTAL CENTER A HOUSTON CHAIN COULDN'T BE REACHED TO COMMENT NOR COULD DREW MORVANT THE NEW ORLEANS DENTIST ATTORNEY GENERAL JANET RENO SAID THE SUITS DEMONSTRATE THAT AIDSRELATED DISCRIMINATION WON'T BE TOLERATED SUCH DISCRIMINATION IS BASED ON UNFOUNDED FEAR AND FACTUAL MISUNDERSTANDINGS SHE SAID 9310050042 931005 FORM + FUNCTION BY JOHN PIERSON HERE ARE TWO NEW SOLUTIONS TO WRITER'S CRAMP BURT RUBIN IS MAKING A BALLPOINT PEN THAT RESEMBLES A LARGE LIMA BEAN TWOANDAHALF INCHES LONG HIS EVOPEN FITS SNUGLY INTO THE RIGHT OR LEFT HAND THE POINT STICKING OUT ABOUT A HALFINCH THE CREATIONS OF MR RUBIN A NEW YORK DESIGNER AND ENTREPRENEUR INCLUDE WIDE PAPER FOR ROLLING MARIJUANA CIGARETTES AND A TELESCOPE HIS LATEST INVENTION HE CALLS THE FIRST ORIGINAL PEN SINCE 56 BC AND SAYS ITS UNIQUENESS LIES IN FITTING INSIDE THE HAND EVOPEN'S GRIP IS NATURAL ADDS MR RUBIN PEOPLE HOLD IT THE SAME WAY A THREEYEAROLD CHILD INSTINCTIVELY GRASPS A CRAYON AND WHEN PEOPLE ARE THROUGH WRITING THEY CAN POP OUT THE CARTRIDGE REVERSE IT AND POP IT BACK IN WHERE IT WON'T SOIL A POCKET OR PURSE IT SELLS FOR 150 NOT YET IN PRODUCTION IS CARL BISTRACK'S ERGONOMIC PEN WHICH LOOKS LIKE A CYCLADIC GODDESS PERCHED ON A TOTEM POLL A NORMAL LENGTH THIS ERGO PEN HAS TWO BUMPS WHERE FINGERS REST NEAR THE POINT WHICH THE SOUTHAMPTON PA INVENTOR SAYS ELIMINATE SQUEEZING AND PINCHING THE BISTRACK PEN IS RELATIVELY UNKNOWN BUT THE EVOPEN HAS BEEN GREETED WARMLY SINCE ITS INTRODUCTION THIS SUMMER IT SEEMS ERGONOMICALLY MERITWORTHY WROTE R THOMAS GROTZ A SAN FRANCISCO ORTHOPEDIC SALL LABORATORIES MAKER OF ADVIL PLANS TO DISTRIBUTE 3000 EVOPENS AT A MEETING OF ARTHRITIS DOCTORS IN NOVEMBER NEVERTHELESS MAKERS OF TRADITIONAL WRITING INSTRUMENTS AND COMPANIES THAT PRODUCE VARIOUS ADDON GRIPS ARE SKEPTICAL ABOUT PENS THAT DEPART SO MUCH FROM THE NORM MARK WELFLEY A MARKET MANAGER AT PENTEL OF AMERICA SAYS THE PROBLEM WITH PENS ISN'T PINCHING BUT RATHER A LACK OF CUSHIONING AND MIKE TILLAY PRESIDENT OF GRAB ON PRODUCTS WALLA WALLA WASH SAYS HIS COMPANY ACCEPTS THE REALITY THAT PEOPLE DO GRIP THEIR PENS TOO TIGHT AND TRIES TO MAKE THAT GRIP MORE COMFORTABLE WITH A VARIETY OF FOAM ADDONS THE SEWERS OF PARIS WERE CONSIDERED SO GRAND THEY WERE ON THE TOUR TAKEN BY FANCY PEOPLE ALONG WITH THE EIFFEL TOWER AND NOTRE DAME CATHEDRAL BUT FOR MODERN AMERICANS SEWERS AND SEWAGE HAVE REPLACED SEX AS THE UNMENTIONABLE WE USED TO SEE LENGTHY DESCRIPTIONS IN THE PUBLIC PRESS OF WASTE WATER FACILITIES SAYS ROBERT BRUEGMANN ASSOCIATE PROFESSOR OF THE HISTORY OF ARCHITECTURE AT THE UNIVERSITY OF ILLINOIS CHICAGO NO MORE WE'RE EMBARRASSED ABOUT IT THE EMBARRASSMENT EXTENDS TO SOLID WASTE ANYTHING TO DO WITH GARBAGE IS NEGATIVE SAYS RON JENSEN DIRECTOR OF PUBLIC WORKS AT PHOENIX BUT CHANGE MAY BE AT HAND A TINY GROUP OF PLANNERS AND ENGINEERS IS TAKING GARBAGE AND SEWAGE PUBLIC PHOENIX IS ABOUT TO OPEN A NEW SOLID WASTE MANAGEMENT PLANT THAT ALSO WILL BE A SCHOOL AND A SOCIAL CENTER THERE WILL BE CLASSROOMS GUIDED TOURS AND BIG WINDOWS FOR VIEWING THE RECYCLING AND THERE IS AN AMPHITHEATER AND SPACE FOR LUNCHEONS SPEAKERS DANCING ART SHOWS BIRD WATCHING AND MR JENSEN HOPES RESEARCH SCOTTSDALE ARIZ PLANS TO TURN ITS SEWAGE TREATMENT PLANTS INTO AN EDUCATIONAL CAMPUS WITH TOURS PERHAPS BY NARROWGAUGE TRAINS AS AT DISNEYLAND WE'RE PROUD OF TAKING EFFLUENT AND SHOWING WHAT WE'RE GOING TO DO WITH IT SAYS LEONARD DUEKER GENERAL MANAGER OF SCOTTSDALE'S WATER RESOURCES DEPARTMENT TURNING ART INTO THINGS YOU CAN USE THAT'S WHAT A SCULPTOR TURNED ENGINEER IS TRYING TO DO NEW YORK'S CHUCK HOBERMAN HAS DESIGNED ELEGANT FOLDED GEOMETRIES THAT SMOOTHLY CHANGE THEIR SIZE AND SHAPE NOW HE IS IN THE BUSINESS OF TRANSFORMING THOSE SHAPES INTO TOYS AND TENTS AND STADIUM DOMES HIS GEOTOY A PLASTIC SPHERE THAT EXPANDS FROM 10 INCHES TO 30 INCHES WILL BE ON THE MARKET IN A FEW WEEKS THE LIBERTY SCIENCE CENTER ON THE JERSEY SHORE NEAR THE STATUE OF LIBERTY HAS A HOBERMAN GLOBE THAT CONTINUOUSLY OPENS TO 18 FEET AND CLOSES TO 4 1/2 FEET A LARGE MANUFACTURER IS INTERESTED IN HIS POPTENT AND MR HOBERMAN HAS HIS EYE ON SAN FRANCISCO'S CANDLESTICK PARK WHOSE OWNERS ARE CONSIDERING TAMING THE WEATHER WITH A RETRACTABLE DOME A HALF DOZEN SUCH DOMES ALREADY EXIST THE MOST PROMINENT TORONTO'S SKY DOME MR HOBERMAN SAYS MOST DOMES OPEN ONLY HALF WAY WHILE HIS IRIS DOME WHICH MOVES LIKE THE CENTER OF AN EYE OPENS ALMOST 100 MARTIN MIKULAS A PROFESSOR AT THE UNIVERSITY OF COLORADO BOULDER AND A FORMER NASA ENGINEER CALLS MR HOBERMAN'S APPROACH NEW AND DIFFERENT MR HOBERMAN SAYS THAT WHILE MOST DESIGNERS START WITH A PROBLEM AND FIND A SOLUTION HE WORKS THE OTHER WAY I WASN'T REALLY LOOKING FOR WAYS TO MAKE A BETTER TENT HE CONCLUDES I WAS TRYING TO MAKE SOMETHING MAGICAL AND BEAUTIFUL 9310050041 931005 TECHNOLOGY US IN SETTLEMENT WITH TWO MAKERS OF SPACE TELESCOPE BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL GOVERNMENT HAS REACHED A 25 MILLION SETTLEMENT WITH THE MAKERS OF THE TROUBLED HUBBLE SPACE TELESCOPE LAUNCHED THREE YEARS AGO THE HUBBLE HAS SUFFERED A SERIES OF TECHNOLOGICAL PROBLEMS THE CRAFT HAS A FLAWED MIRROR THAT STOPS IT FROM DOING SOME CHORES IT WAS DESIGNED FOR AND CAUSES IT TO SEND SOME LESSTHANSHARP IMAGES TO EARTH UNDER THE SETTLEMENT PERKINELMER CORP OF NORWALK CONN WILL PAY 15 MILLION BY OCT 22 ANOTHER 35 MILLION WILL BE PAID BY HUGHES DANBURY OPTICAL SYSTEM A SUBSIDIARY OF HUGHES AIRCRAFT CORP THROUGH A WAIVER OF FEES PREVIOUSLY CLAIMED BY THE COMPANY HUGHES WILL ALSO FORGO 65 MILLION IN FEES FOR FUTURE WORK RELATED TO THE TELESCOPE THE GOVERNMENT CONTENDED THAT THE COMPANY KNEW OR SHOULD HAVE KNOWN OF THE DEFECT IN THE TELESCOPE'S MAIN MIRROR WHICH PREVENTS THE 2 BILLION TELESCOPE FROM FOCUSING SHARPLY AND ACHIEVING SOME OF ITS PLANNED OBSERVATIONS SAID THE JUSTICE DEPARTMENT IN A STATEMENT THE DEPARTMENT NEGOTIATED THE SETTLEMENT ON BEHALF OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION LOS ANGELESBASED HUGHES AIRCRAFT ITSELF A SUBSIDIARY OF GENERAL MOTORS CORP IN 1989 ACQUIRED THE PERKINELMER DIVISION THAT MADE THE TELESCOPE JUST FOUR MONTHS BEFORE THE SPACECRAFT WAS LAUNCHED AND FIVE YEARS AFTER THE TELESCOPE WAS DELIVERED TO NASA HUGHES SAID IT AGREED TO THE SETTLEMENT TO AMICABLY RESOLVE THE MATTER BY EXTENDING A GOODWILL ECONOMIC BENEFIT TO ITS VALUED CUSTOMER NASA AS WELL AS TO AVOID THE TIME EXPENSE AND BUSINESS DISRUPTION OF A POTENTIAL HUBBLERELATED LAWSUIT A HUGHES SPOKESMAN RICHARD DORE ADDED IN AN INTERVIEW THAT IN MANY RESPECTS THE SATELLITE IS PERFORMING VERY WELL IT'S JUST NOT UP TO THE FULL EXPECTATIONS GAYNOR KELLY CHAIRMAN AND CHIEF EXECUTIVE OF PERKINELMER SAID FIGHTING A GOVERNMENT LAWSUIT WOULD HAVE DRAINED THE COMPANY'S RESOURCES FOR AN UNFORESEEABLE PERIOD PERKINELMER FIRMLY BELIEVES THAT IT ACTED RESPONSIBLY IN ACCORDANCE WITH NASA'S PROCEDURES DURING THE MANUFACTURE OF THE HUBBLE TELESCOPE MIRROR AND THAT A LAWSUIT WOULD HAVE BEEN COMPLETELY UNWARRANTED MR KELLY SAID TO REPAIR THE TELESCOPE THE SPACE AGENCY SAID IT IS PLANNING PERHAPS THE MOST DIFFICULT AND CHALLENGING SATELLITE SERVICING MISSION NASA HAS EVER ATTEMPTED IN DECEMBER FOUR ASTRONAUTS ARE PLANNING FIVE SIXHOUR SPACE WALKS TO FIX THE CRIPPLED SPACECRAFT 9310050040 931005 INTERNATIONAL PLEA AGREEMENT IS REACHED IN GOLFMEMBERSHIP SALES LAS VEGAS GOVERNMENT OFFICIALS SAID THEY REACHED A PLEABARGAIN AGREEMENT IN A 800 MILLION FRAUD CASE INVOLVING THE SALE OF BOGUS GOLFCOURSE MEMBERSHIPS IN JAPAN AND THE SUBSEQUENT LAUNDERING OF THE MONEY INTO THE US KEN INTERNATIONAL A JAPANESE CORPORATION THAT WAS HEADED BY FLAMBOYANT EXECUTIVE KEN MIZUNO WAS EXPECTED TO PLEAD GUILTY TODAY IN FEDERAL COURT HERE TO MONEYLAUNDERING AND OTHER CHARGES AND AGREE TO THE FORFEITURE OF ABOUT 100 MILLION IN US ASSETS INCLUDING GOLF COURSES A HOTEL LUXURY CARS AND HOMES UNDER THE AGREEMENT 90 OF THE PROCEEDS FROM THESE FORFEITURES WILL BE RETURNED TO FRAUD VICTIMS IN JAPAN AFTER AN 18MONTH INVESTIGATION BY THE US ATTORNEY'S OFFICE IN NEVADA US CUSTOMS OFFICIALS AND THE INTERNAL REVENUE SERVICE A DEAL WAS STRUCK WITH ATTORNEYS REPRESENTING THE BANKRUPTCY ESTATE OF THE COMPANY FROM 1989 TO 1992 KEN INTERNATIONAL WAS OWNED SOLELY BY KEN MIZUNO WHO GAINED NOTORIETY FOR HIS HIGHROLLING TRIPS TO LAS VEGAS CASINOS AN AFFILIATE OF KEN INTERNATIONAL SOLD 52000 MEMBERSHIPS VALUED AT ABOUT 800 MILLION IN THE IBARAGI COUNTY CLUB THIS WAS DESPITE ADVERTISING THAT ONLY 1830 MEMBERSHIPS WOULD BE SOLD 9310050039 931005 VIACOM TO GET 12 BILLION FROM NYNEX BY JOHNNIE L ROBERTS AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK VIACOM INC RECEIVED A COMMITMENT FOR A 12 BILLION CASH INFUSION FROM NYNEX CORP FORMING A STRATEGIC ALLIANCE WITH THE REGIONAL BELL TELEPHONE COMPANY THAT STRENGTHENS VIACOM'S HAND IN THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC BUT RIVAL BIDDER QVC NETWORK INC APPEARED READY TO COUNTER THE VIACOM MOVE BY PRESENTING PARAMOUNT THIS MORNING WITH PROOF OF ITS BANK FINANCING FOR ITS HIGHER 95 BILLION 7978ASHARE BID ACCORDING TO PEOPLE CLOSE TO QVC PARAMOUNT HAS SAID THAT ITS AGREEMENT TO BE ACQUIRED BY VIACOM PREVENTS IT FROM NEGOTIATING WITH ANOTHER BIDDER UNTIL IT RECEIVES PROOF OF FINANCING QVC'S OFFER INCLUDES STOCK AND 30 A SHARE IN CASH OR 36 BILLION FAR MORE THAN VIACOM'S CASH COMPONENT OF 910 A SHARE OR 11 BILLION ALTHOUGH QVC HAS HAD BANK COMMITMENTS LINED UP SINCE FRIDAY THESE SAME PEOPLE SAID QVC DELAYED NOTIFYING PARAMOUNT WHILE IT CONDUCTED TALKS WITH TWO POTENTIAL PARTNERS OF ITS OWN INCLUDING BELLSOUTH CORP THE ATLANTABASED BELL OPERATING COMPANY OTHERS CLOSE TO QVC SAID AMERITECH CORP AND BELL ATLANTIC CORP TWO OTHER BABY BELLS BASED IN CHICAGO AND PHILADELPHIA RESPECTIVELY AS WELL AS WEALTHY INDIVIDUALS ALSO MIGHT JOIN QVC VIACOM A CABLETV AND PROGRAMMING CONCERN BASED IN NEW YORK SAID IT DOESN'T SEE ANY IMMEDIATE REASON TO USE THE EXPECTED PROCEEDS OF THE INVESTMENT FROM NEW YORKBASED NYNEX WHICH IT WON'T ACTUALLY RECEIVE FOR SEVERAL MONTHS TO BOOST ITS 75 BILLION 6294ASHARE OFFER FOR PARAMOUNT AN ENTERTAINMENT AND PUBLISHING COMPANY BASED IN NEW YORK IN A TELEPHONE CONFERENCE CALL VIACOM CHAIRMAN SUMNER REDSTONE INSISTED THAT THE NYNEX DEAL WAS UNRELATED TO THE TAKEOVER BATTLE THIS PRESS CONFERENCE ISN'T ABOUT PARAMOUNTVIACOM HE DECLARED ADDING THAT WHAT YOU SEE TODAY AND IN CONNECTION WITH BLOCKBUSTER ISN'T ABOUT MONEY THIS IS ABOUT PICKING THE RIGHT STRATEGIC PARTNER HOWEVER BOTH PARAMOUNT AND BLOCKBUSTER HAILED THE NYNEX STAKE AS STRENGTHENING THE PROPOSED VIACOMPARAMOUNT MERGER BUT TOGETHER WITH A 600 MILLION INVESTMENT LAST WEEK FROM BLOCKBUSTER ENTERTAINMENT CORP THE NYNEX STAKE GIVES VIACOM A WAR CHEST OF 18 BILLION ENOUGH TO RAISE THE CASH PORTION OF ITS OFFER TO ROUGHLY 24 A SHARE FROM THE CURRENT LEVEL OF ONLY 910 QVC'S OFFER INCLUDES 30 PER SHARE IN CASH NYNEX CHAIRMAN WILLIAM FERGUSON SAID YESTERDAY OUR INTENT IS TO HAVE A MULTIMEDIA BROADBAND INTERACTIVE NETWORK IT IS IMPORTANT THAT WE HAVE A RELATIONSHIP WITH A CONTENT PROVIDER THAT HELPS TO FILL OUT THE STRATEGIC PORTFOLIO JEFFREY WILLIAMS THE INVESTMENT BANKER WHO HEADS MEDIA AND TELECOMMUNICATIONS AT MORGAN STANLEY GROUP I WHICH ADVISED NYNEX IN THE VIACOM INVESTMENT SAID THAT BEFORE THE TAKEOVER BATTLE BEGAN NYNEX HAD IDENTIFIED FOUR COMPANIES IT WANTED TO LEARN MORE ABOUT IN PURSUING A MULTIMEDIA STRATEGY TWO OF THEM WERE VIACOM AND PARAMOUNT ONCE THE CURRENT SITUATION TOOK SHAPE HE SAID NYNEX MOVED QUICKLY AND DECISIVELY JACK GRUBMAN TELECOMMUNICATIONS ANALYST AT PAINEWEBBER GROUP INC SAID NYNEX HASN'T ARTICULATED A MULTIMEDIA BUSINESS PLAN BUT CAN USE THE VIACOM STAKE AS A WAY TO LEARN ABOUT ALL ASPECTS OF ENTERTAINMENT KENNETH LEON WHO FOLLOWS TELECOMMUNICATIONS AT LEHMAN BROTHERS INC SAID THE VIACOM INVESTMENT MAY CHANGE THE PERCEPTION OF NYNEX WHICH HE SAID HAS BEEN VIEWED AS A PUNCHING BAG WHOSE LUCRATIVE NEW YORK AND BOSTON LOCAL SERVICE AREAS ARE VULNERABLE TO COMPETITION FROM ALTERNATE LOCALACCESS PROVIDERS SINCE THE BREAKUP OF AMERICAN TELEPHONE & TELEGRAPH CO MR LEON SAID NYNEX HAS BEEN MORE CAUTIOUS THAN OTHER BABY BELLS IN MAKING MAJOR INVESTMENTS THAT MIGHT DILUTE EARNINGS BUT OFFER THE PROSPECT OF GROWTH THIS INVESTMENT PUTS THEM ON THE MAP BUT HE CAUTIONED THAT UNLIKE AN INVESTMENT IN AN ENTERTAINMENT SUBSIDIARY OF TIME WARNER INC BY U S WEST INC ANOTHER BABY BELL THIS ONE DOESN'T GIVE NYNEX A MANAGEMENT ROLE LIKE BLOCKBUSTER NYNEX WILL GET A SEAT ON THE VIACOM BOARD FOR MR FERGUSON BUT WON'T GET VOTING STOCK ALSO LIKE BLOCKBUSTER NYNEX WILL RECEIVE PREFERRED STOCK WITH A 5 DIVIDEND CONVERTIBLE INTO VIACOM NONVOTING CLASS B SHARES AT 70 PER SHARE THE B SHARES CLOSED YESTERDAY AT 53375 DOWN 50 CENTS A SHARE AS REPORTS OF THE NYNEX INVESTMENT CIRCULATED DURING THE DAY QVC STOCK TUMBLED AS TRADERS SPECULATED THAT A NYNEX INVESTMENT MIGHT FORCE QVC TO INCREASE ITS BID TO COMPETE WITH A POSSIBLE HIGHER VIACOM BID QVC SHARES FELL 225 A SHARE TO 5575 IN NATIONAL OVERTHECOUNTER TRADING REDUCING THE VALUE OF ITS PARAMOUNT BID TO 7978 A SHARE OR 95 BILLION THE FIRST TIME THE OFFER HAS BEEN VALUED BELOW ITS INITIAL 80ASHARE LEVEL TWO WEEKS AGO VIACOM SHARES ALSO FELL SLIGHTLY CUTTING THE VALUE OF VIACOM'S BID TO 6294 A SHARE OR 75 BILLION THE DROP IN BOTH BIDDERS' STOCK ALSO CUT THE PRICE OF PARAMOUNT SHARES WHICH WERE DOWN MOST OF THE DAY BUT SURGED LATE IN THE DAY TO CLOSE AT 7850 UP 75 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE NYNEX STOCK ALSO SLIPPED 375 CENTS TO 46 A SHARE VIACOM'S MR REDSTONE DECLINED TO COMMENT ON WHETHER HE WILL TRY TO ATTRACT ADDITIONAL PARTNERS BUT HE ALSO RULED OUT ANY FURTHER INVESTMENT BY ANOTHER TELEPHONE COMPANY EXPLAINING WE'VE MARRIED NYNEX THAT IS AN ABSOLUTE COMMITMENT 9310050038 931005 BUSINESS BRIEF AMERICAN INTERNATIONAL GROUP INC SECURITIES TRADING VENTURE IS SET WITH HYPERION CAPITAL AMERICAN INTERNATIONAL GROUP INC AND HYPERION CAPITAL MANAGEMENT INC SAID THEY FORMED A PARTNERSHIP TO SELL MORTGAGEBACKED SECURITIES THE JOINT VENTURE CALLED AIGHYPERION INVESTMENT MANAGEMENT LP WILL SPECIALIZE IN DEVELOPING AND MARKETING PRODUCTS TO INTERNATIONAL INVESTORS THE PARTNERSHIP BETWEEN THE NEW YORK COMPANIES EXPECTS TO BE MANAGING AT LEAST 1 BILLION WITHIN A YEAR SAID KENNETH WEISS PRESIDENT OF HYPERION CAPITAL AND OF THE NEW VENTURE THE PARTNERSHIP WILL BE RUN BY HYPERION AND AIG INVESTMENT CORP AN INVESTMENT ARM OF AIG ONE OF THE COUNTRY'S LARGEST INSURERS BOTH SIDES WILL DEVELOP INVESTMENT STRATEGY HYPERION CAPITAL WAS FOUNDED BY LEWIS RANIERI THE FORMER SALOMON BROTHERS INC TRADER WHO HELPED PIONEER THE MORTGAGEBACKED SECURITIES BUSINESS THE FIRM MANAGES MORE THAN 35 BILLION MOSTLY OF MORTGAGEBACKED SECURITIES AIG INVESTMENT CORP MANAGES 18 BILLION 15 BILLION OF WHICH ARE ASSETS OF AIG'S INTERNATIONAL INSURANCE COMPANIES 9310050037 931005 BUSINESS BRIEF FURR'S/BISHOP'S INC GE PENSION FUND IS GRANTED 54 MILLION IN ARBITRATION FURR'S/BISHOP'S INC SAID AN ARBITRATION PANEL IN DELAWARE GRANTED A 54 MILLION AWARD TO THE GENERAL ELECTRIC PENSION FUND AGAINST FURR'S WHOLLY OWNED FURR'S/BISHOP'S CAFETERIAS LP THE LUBBOCK TEXAS CAFETERIA OPERATOR SAID IT DOESN'T ANTICIPATE BEING ABLE TO PAY THE AWARD IN CASH IF AND WHEN A JUDGMENT ON THE AWARD IS ENTERED IN COURT AND THAT A FAILURE TO SATISFY THE AWARD COULD LEAD TO A DEFAULT ON ITS APPROXIMATELY 200 MILLION OF OUTSTANDING DEBT JOE W CONNER CHIEF FINANCIAL OFFICER SAID THE COMPANY HASN'T DECIDED WHETHER TO APPEAL TO AN ARBITRATION REVIEW BOARD THE AWARD RELATES TO A DISPUTE UNDER WHICH THE PENSION FUND REJECTED AS TOO LOW A VALUATION OF ITS 175 MILLION SUBORDINATED PARTNERSHIP UNITS IN FURR'S/BISHOP'S CAFETERIAS AT THE TIME OF A 1991 REORGANIZATION IN WHICH THAT PARTNERSHIP MERGED WITH FURR'S/BISHOP'S INC 9310050036 931005 JC PENNEY TO REDEEM NOTES PLANO TEXAS JC PENNEY CO SAID IT WILL REDEEM NOV 1 ALL OF ITS 8375 NOTES DUE 1996 AT PAR PLUS ACCRUED INTEREST THE RETAILER SAID 115 MILLION FACE AMOUNT IS OUTSTANDING 9310050035 931005 LAST STAND OF THE OLD BELIEVERS BY DAVID BROOKS SOMETIMES WHAT A PERSON BELIEVES IS NOT AS IMPORTANT AS THE MANNER IN WHICH HE BELIEVES IT THE PEOPLE HOLED UP IN THE RUSSIAN PARLIAMENT BUILDING YESTERDAY DREAMED OF MANY DIFFERENT UTOPIAS SOME WANTED STALIN BACK OTHERS WANTED THE CZAR OTHERS HITLER A FEW EVEN WANTED A NATION LED BY SELFDECLARED ACTING PRESIDENT ALEXANDER RUTSKOI BUT WHAT THEY ALL SHARED WAS A BELIEF IN THEIR OWN GLORIOUS HEROISM SEVENTY YEARS OF SOVIET PROPAGANDA WERE NOT IN VAIN ALL THOSE SOVIET SCHOOLBOOKS PREACHED THE THEOLOGY OF MARTYRDOM THE HUGE MUSCULAR STATUES AROUND MOSCOW TELL YOU THAT THE WAY TO SOLVE PROBLEMS IS NOT THROUGH COMPROMISE AND MUDDLING BUT THROUGH COURAGE AND SELFSACRIFICE IN THE SOVIET ERA POEMS FILMS AND MUSIC DEPICTED EVERY STRUGGLE AS IF IT WERE BETWEEN GOOD AND EVIL AND FAILURE WAS ALWAYS THE FAULT OF ONE OF THE SECULAR ANTICHRISTS CAPITALISTS ZIONISTS COUNTERREVOLUTIONARIES EVEN SOME OF THE PEOPLE WHO ABANDONED SOCIALISM NEVER GAVE UP THE ROMANTIC HEROISM THAT WAS ITS MOST ATTRACTIVE FEATURE SO THE STAGE WAS SET FOR YESTERDAY'S LUNATIC STAND ALL WEEK THE PEOPLE IN MOSCOW'S PARLIAMENT BUILDING KNOWN AS THE WHITE HOUSE STRUTTED AROUND REVELING IN THEIR HEROISM MR RUTSKOI VOWED TO FIGHT TO THE VERY END AND SPEAKER RUSLAN KHASBULATOV PREDICTED THAT HE WOULD END HIS CRUSADE IN PRISON BUT PROMISED TO FIGHT ON NONETHELESS OVER THE PAST MONTHS THEIR RHETORIC BECAME MORE APOCALYPTIC AND HYSTERICAL INCITING THEIR FOLLOWERS A POLITICAL OPPONENT WAS NEVER JUST MISTAKEN HE WAS A FASCIST A CRIMINAL OR A LACKEY JEWS ARE FLOURISHING EVERYWHERE IN RUSSIA WHILE WE ARE DYING ONE OLD LADY TOLD THE WASHINGTON POST THEY CONTROL EVERYTHING YELTSIN IS A PUPPET IN THEIR HAND OTHER DEMONSTRATORS CHANTED BEAT KIKES SAVE RUSSIA THE WORSE THINGS GOT THE MORE THESE PEOPLE RELISHED THEIR STAND TAKING BITTER PRIDE IN YOUR SUFFERINGS IS AN OLD RUSSIAN TRADITION A PERSON WHO THINKS THIS WAY MEASURES HIS COMMITMENT TO AN IDEA BY HIS ABILITY TO FIGHT FOR IT EVEN AFTER ALL HOPE IS GONE BOTH COMMUNISTS AND FORMER ANTICOMMUNISTS LIKE MESSRS RUTSKOI AND KHASBULATOV INHABITED A WORLD OF HEROIC STRUGGLE BOTH DEMONIZED THEIR ENEMIES BOTH QUICKLY ELEVATED THEIR POWER STRUGGLES TO THE LEVEL OF MANICHAEAN MORAL CRUSADES COMMUNISM WAS EVIL AND FOR A TIME THE ANTICOMMUNISTS' UNRELENTING STYLE FIT THEIR JUST CAUSE BUT TIMES CHANGE I VISITED VIKTOR AKSYUCHITS ONE OF THE IMPORTANT FIGURES IN THE ANTICOMMUNIST MOVEMENT IN HIS PARLIAMENTARY OFFICE IN THE RUSSIAN WHITE HOUSE SEVERAL MONTHS BEFORE THE 1991 COUP HE HAD A CALM PRIESTLY MANNER AND ENTHUSED ABOUT THE RELIGIOUS REVIVAL THAT WAS THEN FRESH IN RUSSIA HE EMPHASIZED THAT HIS IDEAS WERE CLOSE TO THOSE OF THE GERMAN CHRISTIAN DEMOCRATS AS CHAIRMAN OF THE PARLIAMENTARY COMMITTEE ON FREEDOM OF CONSCIENCE RELIGION MERCY AND CHARITY HE FOUGHT FOR THOSE RELIGIOUS BELIEVERS WHO HAD BEEN PERSECUTED BY THE COMMUNISTS HE WAS ONE OF THEIR HEROES I WENT TO SEE HIM AGAIN IN THE PARLIAMENT BUILDING LAST YEAR WHEN THE YELTSINPARLIAMENT FIGHTING WAS ALREADY WELL UNDER WAY HE SENT DOWN A SECRETARY TO MEET ME AT THE ENTRANCE SHE WAS WEARING ONE OF THOSE ABSURD RUSSIAN MINISKIRTS THAT DON'T EVEN COVER THE WEARER'S UNDERWEAR IT SEEMED THAT SOMETHING HAD CHANGED INDEED HE HAD TRIMMED HIS BEARD SO THAT WHAT HAD ONCE BEEN DIVINITYSCHOOL FACIAL HAIR WAS NOW FEROCIOUSLY FU MANCHU HE WORE A MENACING LEATHER JACKET AND GLOWERED THROUGHOUT OUR CONVERSATION HE SPUN CONSPIRACY THEORIES ABOUT HOW THE KGB AND MR YELTSIN HAD FIXED THE US ELECTION HE RAILED AT MR YELTSIN AS A FASCIST PLOTTER AND ENGAGED IN THE SORT OF MANIC HYPERBOLE THAT CAME TO DOMINATE THE RUSSIAN PARLIAMENT WHAT HAD CHANGED WAS THAT HE WAS NO LONGER INVOLVED IN A STRUGGLE AGAINST EVIL BUT IN A LEGISLATIVE PROCESS RATHER THAN PLOD THROUGH THIS MUNDANE AND CONFUSING SWAMP HE INVENTED DEMONS HE BECAME A LEADER IN THE PARLIAMENT THIS YEAR AND BECAUSE SO MANY SHARED HIS ATTITUDE THE PARLIAMENT BECAME A BEDLAM CHAMBER RATHER THAN A FUNCTIONING BODY MR AKSYUCHITS WAS NONETHELESS KNOWN AS A MODERATE ON THE RUSSIAN RIGHT HE WAS NOT AMONG THE PARLIAMENTARY FANATICS WHO REMAINED IN THE WHITE HOUSE UNTIL YESTERDAY'S BITTER END BUT MANY OF THOSE ON THE MODERATE RIGHT SUCH AS MR RUTSKOI DRIFTED FURTHER AND FURTHER TO THE EXTREME SEEKING THE HEROIC CLARITY THAT COMES WITH EXTREMISM THE GRAND FUTILE GESTURE CAME SUNDAY WHEN MR RUTSKOI ORDERED A MOB TO ATTACK THE RUSSIAN TELEVISION CENTER IT WAS JUST THE SORT OF LUNATIC MANEUVER THAT SOMEBODY WOULD MAKE IF HE IS PUFFED UP WITH HIS OWN HEROISM AND HAS WATCHED TOO MANY EISENSTEIN PROPAGANDA MOVIES IN WHICH THE STORMING OF THE WINTER PALACE IN 1917 IS MADE TO SEEM SO ROMANTIC OF COURSE ON CNN THE STORMING OF THE TV CENTER SUNDAY AND THE DENOUEMENT YESTERDAY WAS NOT ROMANTIC AT ALL JUST SCREECHING MEN BLOODY VICTIMS OVERWROUGHT GESTURES BEMUSED COMMUTERS BURNING BUILDINGS AND LOPSIDED ASSAULTS THE EXISTENCE OF ALL THOSE DISPASSIONATE COMMUTERS HANGING AROUND THE TANKS IS A SIGN THAT MOST YOUNG RUSSIANS AT LEAST HAVE LEFT ALL THIS GLORYSEEKING BEHIND IN THE CAPITALIST DEMOCRACY THAT IS BEING SLOWLY BUILT POLITICAL CHOICES ARE RARELY BETWEEN GOOD AND EVIL AND ECONOMIC CHOICES USUALLY INVOLVE TRADEOFFS AND OPPORTUNITY COSTS IN A DEMOCRACY POLITICIANS WHO ARE OUT OF POWER ARE NOT SUPPOSED TO LEAD REVOLTS THEY ARE SUPPOSED TO FORM LOYAL OPPOSITIONS AND WAIT FOR BETTER ELECTION RETURNS NEXT TIME WINNERS DO NOT TAKE ALL BUT ARE MODERATED BY FACTIONS AND MINORITIES THIS PROSAIC WAY OF LIVING IS NORMAL FOR BOURGEOIS DEMOCRACIES BUT FOR PEOPLE WHO GREW UP SURROUNDED BY THE MYTHOLOGY OF COMMUNIST OR ANTICOMMUNIST STRUGGLE IT IS MEDIOCRE STUFF MANY CANNOT ADAPT OTHERS COULD BUT FEEL THAT THE COST OF A TAME LIFE IS ARIDITY IT IS NOT ONLY THE FANATICS WHO MANNED THE WHITE HOUSE BARRICADES WHO ARE HAVING TROUBLE WITH THE NEW WAYS OF BEHAVING THE DILEMMA PLAGUES BUSINESSES MAINSTREAM OPPOSITION PARTIES EVEN THE STRUTTING PRESENCES IN THE YELTSIN ADMINISTRATION ONE OF THE PROBLEMS WITH THE POSTSOVIET WORLD IS THAT THERE ARE TOO MANY NAPOLEONS IN MANY ENTERPRISES EITHER THE TOP PERSON THINKS HE IS THE AUTOCRAT OR EVERYBODY ELSE IN THE COMPANY THINKS HE HIMSELF IS THERE ARE FEW FUNCTIONING HIERARCHIES INSTEAD EVERYBODY IS WAGING HIS OWN STRUGGLE LOCAL GOVERNMENTS DECLARE THEIR AUTONOMY FROM THE NATIONAL GOVERNMENT PARLIAMENTARY COMMITTEES DECLARE AUTONOMY FROM PARLIAMENT FINANCE MINISTERS RUN ECONOMIC POLICIES INDEPENDENT OF THE POLICIES THAT ECONOMICS MINISTERS ARE TRYING TO PURSUE THE RUSSIAN PARLIAMENT AND THE RUSSIAN PRESIDENT NEVER FOUND A WAY TO WORK WITHIN THE SAME SYSTEM WHAT'S MISSING IS AN ETIQUETTE IN WHICH RUSSIANS BALANCE THEIR NEWFOUND INDIVIDUALISM WITH THE NEED TO WORK TOGETHER IN LARGE INSTITUTIONS MORE IMPORTANT THERE ARE FEW HIERARCHIES THAT HAVE POPULAR LEGITIMACY IN WHICH EVERYBODY ACCEPTS HIS ROLE IN THE LARGER SYSTEM OF AUTHORITY THE TASK FOR RUSSIANS IS TO BUILD THESE LEGITIMATE STRUCTURES WE ARE RIGHT TO FEEL CONTEMPT FOR THE ANTISEMITISM AND THE DESTRUCTIVENESS OF THE PEOPLE WHO FOUGHT FROM THE PARLIAMENT BUILDING YESTERDAY BUT THEY ALSO DESERVE SOME SYMPATHY THEY REPRESENT ALL THOSE PEOPLE WHO HAVE BEEN LEFT BEHIND AS THEIR COUNTRY HAS MOVED FROM ONE WAY OF THINKING AND BEHAVING TO ANOTHER ISAAC BABEL WROTE A SHORT STORY SET IN THE NEWLY COMMUNIST SOVIET UNION IN WHICH AN OFFICER IN THE POLITICAL POLICE ARBITRARILY SHOOTS AN OLD MAN HIS FRIEND PROTESTS BUT THE KILLER REPLIES TELL ME AS A REVOLUTIONARY WHAT GOOD WAS THIS MAN FOR THE SOCIETY OF THE FUTURE HIS FRIEND HAS NO ANSWER THE COMMUNIST SOLUTION WAS TO MASSACRE SUCH PEOPLE TODAY RUSSIA IS INVOLVED IN THE ENTERPRISE OF BUILDING CIVILIZATION INSTEAD OF COMMUNISM BUT THERE ARE STILL PEOPLE WHO HAVE NO PLACE IN THE SOCIETY OF THE FUTURE MANY ARE TOO OLD TO CHANGE MANY STILL BELIEVE IN THE OLD SYSTEM OR THEY SIMPLY LACK THE MENTAL VOCABULARY TO HELP THEM UNDERSTAND THE NEW FORCES AS A DEMOCRAT RATHER THAN A DICTATOR BORIS YELTSIN TRIES TO ACCOMMODATE THESE PEOPLE IN THE NEW SOCIETY OVER THE PAST TWO YEARS MR YELTSIN MADE COUNTLESS AND TIRESOME COMPROMISES WITH THE PARLIAMENT BUT SOME PEOPLE WILL NOT BE ACCOMMODATED THEY FEEL INSTINCTIVELY THAT THEIR DAYS OF SURETY AND RIGHTEOUSNESS ARE NOW OVER THE FUTURE BELONGS TO THOSE MORALLY AMBIVALENT 25YEAROLD ENTREPRENEURS BOTH COMMUNISM AND ANTICOMMUNISM WERE ROMANTIC CRUSADES YESTERDAY'S VICTORY FOR THE YELTSIN FORCES SIGNALED THE OVERDUE ECLIPSE OF THE CRUSADERS NOW THE GOVERNMENT CAN FOCUS ON MUDDLING THROUGH THOUGH PERHAPS WHILE PRESERVING SOME OF THEIR HEROIC IDEALS THEY DON'T WANT TO BECOME AS TECHNOCRATIC AND PROSAIC AS WE ARE MR BROOKS IS DEPUTY EDITORIAL PAGE EDITOR OF THE WALL STREET JOURNAL EUROPE 9310050034 931005 WHAT'S NEWS BUSINESS AND FINANCE VIACOM RECEIVED A COMMITMENT FOR A 12 BILLION CASH INFUSION FROM NYNEX STRENGTHENING VIACOM'S HAND IN ITS TAKEOVER BATTLE WITH QVC NETWORK OVER PARAMOUNT BUT QVC APPEARED READY TO COUNTER THE VIACOM MOVE BY PRESENTING PARAMOUNT TODAY WITH PROOF OF ITS BANK FINANCING FOR ITS 95 BILLION BID VIACOM SAID IT DOESN'T SEE ANY IMMEDIATE REASON TO USE NYNEX'S INVESTMENT TO BOOST ITS OFFER VALUED AT 75 BILLION FORD NAMED ALEXANDER TROTMAN TO SUCCEED HAROLD POLING AS CHAIRMAN TROTMAN HEAD OF FORD'S WORLDWIDE AUTO OPERATIONS WILL TAKE CHARGE AT A TIME OF INTENSE GLOBAL COMPETITION HE BECOMES FORD'S FIRST FOREIGNBORN CHAIRMAN AND ONLY ITS SIXTH CEO STOCK AND BOND PRICES ENDED MIXED AS RUSSIA'S BLOODY CLASH SPARKED ONLY A MUTED REACTION IN THE FINANCIAL MARKETS THE DOLLAR FELL OVERSEAS THE STOCK MARKETS' REACTION WAS MORE SUBDUED THAN EXPECTED GERMAN AND FRENCH STOCKS ROSE 06 AND BRITISH SHARES CLIMBED 09 US STOCK MUTUAL FUNDS EARNED 53 IN THE THIRD QUARTER INTERNATIONAL STOCK FUNDS GAINED 935 THOUGH OVERSEAS ECONOMIES CONTINUE TO STRUGGLE TECHNOLOGY SHARES MADE WINNERS OUT OF MANY GROWTH STOCK FUNDS AND REALESTATE FUNDS RALLIED SHARPLY GENERAL MOTORS' PRODUCTION GLITCHES ARE HOBBLING THE AUTO MAKER'S IMPORTANT 1994 MODEL LAUNCH AND GM CONCEDED THAT IT MAY TAKE UNTIL NEXT MONTH TO SORT OUT ALL THE PROBLEMS THE TROUBLE COMES AMID CONCERNS BY THE BOARD THAT A UAW CONTRACT WOULD LOCK IN GM'S UNCOMPETITIVE LABOR COSTS CHRYSLER'S DEBT WAS UPGRADED TO INVESTMENTGRADE BY STANDARD & POOR'S RAISING THE LIKELIHOOD THAT THE AUTO MAKER WILL BOOST ITS DIVIDEND FOR THE FIRST TIME SINCE HALVING IT IN 1991 MAJOR US STEELMAKERS PLAN TO BOOST PRICES ON THEIR BIGGEST SELLING PRODUCTS ABOUT 3 ON JAN 2 CITING STRONG DEMAND AND LEAN INVENTORIES KEYCORP AND SOCIETY ARE HOPING THEIR SHARPLY DIFFERENT BANKING STYLES ARE GOING TO BE AN ASSET RATHER THAN A LIABILITY IN THEIR 39 BILLION MERGER JAPANESE CAR MAKERS LAMBASTED THE BIG THREE'S EFFORTS TO BREAK INTO THE JAPANESE MARKET SAYING DETROIT ISN'T DOING ENOUGH TO BOOST EXPORTS JAPANESE EXECUTIVES ALSO RAISED THE POSSIBILITY THEY WON'T MEET GOALS FOR PURCHASING US CAR PARTS LARGELY DUE TO JAPAN'S DETERIORATING ECONOMY THE SUPREME COURT WILL CONSIDER WHETHER THE GOVERNMENT CAN MAKE RETROACTIVE CHANGES IN THE TAX CODE SAFETYKLEEN SAID IT EXPECTS TO TAKE A FOURTHQUARTER CHARGE CUT JOBS AND WRITE DOWN THE VALUE OF SOME ASSETS THE HAZARDOUS WASTE HANDLER'S MOVES REFLECT LOWER HAZARDOUS WASTE VOLUMES AND OVERCAPACITY AT DISPOSAL OUTLETS BAHRAIN'S INVESTCORP PLANS TO BUY CAMELOT MUSIC THE US'S THIRDLARGEST MUSIC RETAILER WITH 365 STORES CAMELOT COULD SELL FOR OVER 350 MILLION BONDS LEHMAN BROTHERS TREASURY INDEX 563683 UP 338 COMMODITIES OIL 1842 A BARREL OFF 21 CENTS DOW JONES FUTURES INDEX 12534 UP 003 SPOT INDEX 11702 OFF 008 DOLLAR 10580 YEN OFF 015 16238 MARKS OFF 00071 9310050033 931005 BUSINESS BRIEF PENNZOIL CO FIRM TO OFFER DEBENTURES THAT SWAP TO CHEVRON STOCK PENNZOIL CO HOUSTON SAID IT WILL OFFER 435 MILLION OF DEBENTURES CONVERTIBLE INTO SHARES OF CHEVRON CORP COMMON STOCK PENNZOIL IS AN OIL AND GAS COMPANY AND ALSO HAS INTERESTS IN SULPHUR AND AUTOSERVICE CENTERS THE DEBENTURES HAVE AN ISSUE PRICE OF 100 AND A COUPON RATE OF 475 AND ARE EXCHANGEABLE AT THE OPTION OF THE HOLDERS INTO CHEVRON SHARES AT 117625 A SHARE THAT REPRESENTS AN EXCHANGE PREMIUM OF 22 OVER YESTERDAY'S CLOSING PRICE OF 96375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING NET PROCEEDS OF THE OFFERING WILL BE USED TO REDUCE DEBT AND FOR GENERAL CORPORATE PURPOSES THE CONVERTIBLE DEBENTURES WILL HAVE AN OVERALLOTMENT OPTION TO PURCHASE AN ADDITIONAL 65 MILLION OF THE DEBENTURES THE PRINCIPAL AMOUNT AND OVERALLOTMENT OPTIONS WERE RECENTLY INCREASED FROM A 250 MILLION OFFERING AND 375 MILLION OVERALLOTMENT OPTION 9310050032 931005 BUSINESS BRIEF ROYCE LABORATORIES INC DRUG MAKER SETTLES LAWSUIT FILED BY SHAREHOLDERS IN '92 ROYCE LABORATORIES INC SAID A FEDERAL JUDGE APPROVED THE TERMS OF SETTLEMENT IN A CLASSACTION SHAREHOLDER LAWSUIT BROUGHT AGAINST THE MIAMIBASED COMPANY LAST YEAR AFTER THE FOOD AND DRUG ADMINISTRATION REJECTED ROYCE'S APPLICATION TO MARKET AN ARTHRITIS DRUG CALLED PIROXICAM UNDER THE TERMS OF THE SETTLEMENT THE DRUG MANUFACTURING CONCERN MUST PAY OUT 850000 IN CASH AND 750000 SHARES IN COMMON STOCK IN ADDITION ROYCE MUST GRANT FIVEYEAR WARRANTS TO PURCHASE 1975000 SHARES OF THE COMPANY'S COMMON STOCK AT 5 A SHARE THERE ARE ABOUT 28 MILLION ROYCE SHARES OUTSTANDING ACCORDING TO THE COMPANY PATRICK J MCENANY ROYCE'S CHIEF EXECUTIVE SAID THE SALE OF COMMON STOCK IS LIKELY TO RESULT IN A ONETIME CHARGE AGAINST EARNINGS NEITHER THE 850000 IN CASH WHICH WILL BE COVERED BY AN INSURER NOR THE WARRANTS SHOULD IMPACT EARNINGS HE SAID ROYCE SHARES WERE AT 175 DOWN NINE CENTS OR 5 LATE YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING 9310050030 931005 BUSINESS BRIEF STRATUS COMPUTER INC COMPANY TO CUT 160 JOBS RECORD 35 MILLION CHARGE STRATUS COMPUTER INC SAID IT WILL ELIMINATE 160 JOBS BY YEAR'S END IN A MOVE TO IMPROVE ITS COST STRUCTURE THE MARLBORO MASS COMPANY WILL RECORD A ONETIME PRETAX CHARGE OF ABOUT 35 MILLION IN ITS FISCAL THIRD QUARTER RELATED TO SEVERANCE EXPENSES FOR THE STAFF REDUCTIONS WHICH AMOUNT TO ABOUT 6 OF THE COMPUTER MAKER'S CURRENT WORK FORCE OF 2737 REDUCING OUR EMPLOYEE POPULATION IS A DIFFICULT STEP TO TAKE BUT IT IS AN IMPORTANT STEP TOWARD THE LONGTERM HEALTH OF OUR COMPANY SAID WILLIAM E FOSTER STRATUS' PRESIDENT AND CHIEF EXECUTIVE OFFICER THE ENTIRE COMPUTER INDUSTRY IS CHANGING ITS ECONOMIC MODEL AND SO IS STRATUS A COMPANY SPOKESMAN SAID THE STAFF REDUCTIONS ABOUT HALF IN ENGINEERING AND MANUFACTURING AND HALF IN OTHER PARTS OF THE COMPANY WILL SAVE STRATUS BETWEEN 7 MILLION AND 10 MILLION A YEAR IN EXPENSES 9310050029 931005 THE HILL ON HILLARY WHAT A BRIGHT GIRL BY KATE WALSH O'BEIRNE THE ISSUE OF HEALTH CARE REFORM MAY HAVE MOVED FORWARD OWING TO HILLARY RODHAM CLINTON'S APPEARANCES ON CAPITOL HILL LAST WEEK BUT WOMEN WHO EXPECT TO BE TAKEN SERIOUSLY WITNESSED A DEPRESSING SPECTACLE FEMINISTS ARE MISTAKENLY BASKING IN HILLARY CLINTON'S REFLECTED GLORY WHEN IN FACT THE CAUSE OF EQUALITY TOOK IT ON THE CHIN WHEN MRS CLINTON'S TESTIMONY ON HER HUSBAND'S HEALTH CARE REFORM PLAN BORE OUT HER REPUTATION AS A SKILLED ADVOCATE CONGRESSMEN REACTED TO HER PERFORMANCE BY PATRONIZING HER FROM ONE SIDE OF CAPITOL HILL TO THE OTHER LAWMAKERS ENDLESSLY PRAISED MRS CLINTON'S ARTICULATE RESPONSES TO QUESTIONS AND HER COMMAND OF THE COMPLICATED DETAILS AT THE OUTSET OF THIS NATIONAL DEBATE STEPS SHOULD BE TAKEN TO SPARE HER AND US A REPEAT PERFORMANCE CONGRESS SHOULD BE ASKED TO STIPULATE THAT WOMEN ARE SMART THEREBY ELIMINATING THE NECESSITY OF POINTING IT OUT ENDLESSLY ROLE MODELS WOULD BE USEFUL FOR THOSE MEN IN CONGRESS WHO JUST DON'T BELIEVE IT SO IT WOULD HELP IF CONGRESSIONAL FEMINISTS STARTED ACTING SMART INSTEAD OF TOUCHY NOT ONE WOMAN I SPOKE TO WAS SURPRISED THAT MRS CLINTON DID AN IMPRESSIVE JOB ON A COMPLICATED SUBJECT WHICH SHE AND A 500MEMBER ADMINISTRATION TASK FORCE HAVE STUDIED FOR SIX MONTHS WHAT WAS IT ABOUT THE SIGHT OF A SMART WOMAN WITH COMMAND OF AN ISSUE THAT SO STUNNED AMERICA'S MALE LAWMAKERS I CAN'T IMAGINE THAT DURING THEIR DISCUSSIONS MEMBERS OF THE KNESSET CONTINUOUSLY NOTED THAT GOLDA MEIR HAD CERTAINLY DONE HER HOMEWORK IT DOESN'T SEEM MARGARET THATCHER'S COLLEAGUES FELT THE NEED TO PREFACE THEIR COMMENTS OR QUESTIONS WITH PAEANS TO HER INTELLIGENCE WITH A HISTORIC NUMBER OF FEMALES IN CONGRESS ARE COMPETENT WOMEN STILL SUCH A RARE COMMODITY ON CAPITOL HILL THAT MRS CLINTON'S PERFORMANCE IS VIEWED AS A GENDER ANOMALY MORE LIKELY THE CONGRESSMEN WERE SO GRATEFUL TO HAVE A THOROUGH POLICY DISCUSSION WITH A FEMALE POLITICIAN WITHOUT THE GENDER CARD BEING PLAYED THAT THEY COULDN'T HELP SWOONING FEMINISTS IN CONGRESS DON'T FIGHT FAIR MANY WOMEN LAWMAKERS DON'T DEBATE ISSUES ON THEIR MERITS BUT RATHER ROUTINELY USE THEIR GENDER AS A WEAPON THEY CAST THEIR POLITICAL OPPONENTS AS JUST SO MANY MISOGYNISTS THE CONGRESSIONAL FEMINISTS PROFESS TO REPRESENT THEIR ENTIRE SEX SO OBVIOUSLY A MAN'S DISAGREEMENT IS BORN OF LOATHING AND CONTEMPT FOR WOMEN THEIR CLAIMED VICTIM STATUS AS MEMBERS OF AN OPPRESSED CLASS AFFORDS THEM KID GLOVE TREATMENT AS A MATTER OF COURSE EQUAL TREATMENT CLEARLY DICTATES STRENUOUS DISAGREEMENTS ON THE MERITS AND CHALLENGES TO FACTS AND PROPOSITIONS BUT A CONGRESSMAN IS BOUND TO WIND UP APOLOGIZING FOR TREATING SOME CONGRESSWOMEN THE SAME WAY HE WOULD A MAN IF HE POSES A TOUGH QUESTION OR DISAGREES WITH THE STATED PROPOSITION HE'S BOUND TO HAVE TO APOLOGIZE FOR HIS INSENSITIVITY BEFORE CONGRESS CAN AGAIN TAKE UP THE NATION'S BUSINESS SO THE CONGRESSMAN PATRONIZES HIS FEMALE COLLEAGUES AND EVERY OTHER COMPETENT WOMAN HE MEETS UP WITH FOR GOOD MEASURE NO ONE INSIDE THE BELTWAY THINKS THE ECONOMIC ANALYSIS UNDERLYING THE CLINTON HEALTH PLAN MAKES SENSE YET MRS CLINTON WAS IN LARGE MEASURE SPARED QUESTIONS ABOUT THE NUMBERS APPARENTLY BECAUSE GIRLS DON'T DO MATH DICK ARMEY OF TEXAS PROVED HIMSELF TO BE THE LEAST SEXIST MAN ON CAPITOL HILL WHEN A TOUGH QUESTION HE ASKED LED TO A CORDIAL BUT SHARP EXCHANGE WITH MRS CLINTON MR ARMEY REFUSED TO JOIN THE CONDESCENSION CAUCUS AND PAID THE WITNESS THE SUPREME COMPLIMENT OF TAKING HER SERIOUSLY AMERICANS FACE THE PROSPECT OF AN UPHEAVAL IN THE WAY HEALTH CARE IS DELIVERED IN THIS COUNTRY WASHINGTON IS DEBATING HOW TO ORGANIZE A SEVENTH OF THE NATION'S ECONOMY AND NO FAMILY WILL REMAIN UNAFFECTED HILLARY CLINTON IS THE AMERICAN HEALTH SECURITY ACT'S CHIEF ARCHITECT SHE HAS WORKED LONG AND HARD ON THE DETAILS OF THE PRESIDENT'S SWEEPING PLAN AND WE ALL HAVE A STAKE IN HER BEING TREATED WITHOUT CONDESCENSION MS O'BEIRNE IS VICE PRESIDENT GOVERNMENT RELATIONS AT THE HERITAGE FOUNDATION AND A CONTRIBUTING EDITOR AT NATIONAL REVIEW 9310050028 931005 BUSINESS BRIEF USA WASTE SERVICES INC 800000 SHARES ARE SWAPPED FOR SOIL REMEDIATION STAKE USA WASTE SERVICES INC SAID IT ACQUIRED ALL OF THE COMMON STOCK OUTSTANDING OF SOIL REMEDIATION OF PHILADELPHIA INC FOR STOCK VALUED AT 99 MILLION AND THE ASSUMPTION OF 9 MILLION OF DEBT THE COMPANY SAID IT IS EXCHANGING 800000 OF ITS COMMON SHARES IN THE ACQUISITION SOIL REMEDIATION OWNS AND OPERATES A THERMAL REMEDIATION FACILITY IN PHILADELPHIA AND HAD REVENUE OF ABOUT 44 MILLION FOR THE EIGHTMONTH PERIOD ENDED AUG 31 USA WASTE SERVICES SAID USA WASTE IS A DALLAS SOLIDWASTE MANAGEMENT COMPANY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE USA WASTE SERVICES SHARES CLOSED AT 12375 UP 25 CENTS 9310050027 931005 BUSINESS BRIEF FM PROPERTIES INC UNIT COMPLETES ASSET SALE TO NOBLE AFFILIATE SUBSIDIARY FM PROPERTIES INC SAID ONE OF ITS UNITS COMPLETED THE SALE OF OIL AND GAS PROPERTIES TO A SUBSIDIARY OF NOBLE AFFILIATES INC FOR 305 MILLION FM PROPERTIES OPERATING CO A 99OWNED AFFILIATE OF FM PROPERTIES SOLD ITS OIL AND GAS PROPERTIES TO SAMEDAN OIL CORP THE NOBLE UNIT OF THE TOTAL 956 MILLION PLUS INTEREST WILL BE RECEIVED IN JANUARY 1994 IN ADDITION FM PROPERTIES OPERATING CO LAST MONTH RECEIVED 122 MILLION RELATING TO A PREVIOUSLY ANNOUNCED BUYOUT OF A LONGTERM NATURAL GAS CONTRACT THE REMAINING 12 MILLION OF PROCEEDS FROM THIS BUYOUT IS DUE IN JANUARY FM PROPERTIES OPERATING CO WILL USE PROCEEDS FROM THE OIL AND GAS PROPERTY SALES AND NATURAL GAS CONTRACT BUYOUT TO REDUCE ITS DEBT 9310050026 931005 BUSINESS BRIEF LUBRIZOL CORP PRETAX 86 MILLION CHARGE WILL BE TAKEN IN 3RD PERIOD LUBRIZOL CORP SAID IT WILL TAKE A THIRDQUARTER PRETAX CHARGE OF 86 MILLION AS PART OF AN EFFORT TO IMPROVE MANUFACTURING EFFICIENCIES RESULTING IN A LOSS FOR THE PERIOD IN THE YEAREARLIER THIRD QUARTER LUBRIZOL EARNED 19 MILLION OR 28 CENTS A SHARE ON REVENUE OF 3642 MILLION THE CLEVELAND SUPPLIER OF PERFORMANCE CHEMICALS SAID THAT AS PART OF THIS INITIATIVE IT WILL IMPLEMENT AN ORGANIZATIONAL REALIGNMENT TO BE COMPLETED BY YEAR END AND WILL CONSOLIDATE ITS CURRENT BUSINESS UNIT STRUCTURE INTO ONE COMPANY OPERATING WITH FEWER PEOPLE ALSO THE COMPANY SAID IT WILL REDUCE ITS 150 COMPONENT PRODUCTION PLANTS WORLDWIDE BY ONETHIRD OVER A TWO TO THREEYEAR PERIOD OVERALL LUBRIZOL SAID THE MOVE WILL RESULT IN ABOUT A 5 REDUCTION IN ITS WORLDWIDE EMPLOYMENT WHICH CURRENTLY STANDS AT ABOUT 4600 THE COMPANY WILL ALSO REALIZE AN ANNUAL COST SAVING THAT IS EXPECTED TO GROW TO 50 MILLION A YEAR BY 1996 9310050025 931005 REVIEW & OUTLOOK EDITORIAL ASIDES PEDALS TO THE PETALS REMEMBER THE SAGEBRUSH REBELLION TYPICALLY DESCRIBED AS AN EFFORT BY WESTERN RESOURCE INTERESTS TO THWART THE FEDERAL GOVERNMENT'S EFFORTS TO LIMIT EXPLOITATION OF PUBLIC LANDS WELL IT SEEMS WE HAVE A NEW TYPE OF ENVIRONMENTALLY SUSPECT REBEL IN THE GREAT OPEN SPACES MOUNTAIN BIKERS IN MARIN COUNTY CALIF OFFICIALS ARE TRYING TO CLOSE OFF UNAUTHORIZED TRAILS THAT CYCLISTS HAVE CARVED IN THE PICTURESQUE HIGHLANDS NORTH OF SAN FRANCISCO RECENTLY THEY DISCOVERED BOOBY TRAPS APPARENTLY SET TO BE SPRUNG ON THOSE WORKING TO ERADICATE ONE POPULAR ILLEGAL TRAIL IT'S ALL PART OF A LARGER BATTLE BEING FOUGHT AGAINST THE AGGRESSIVE TWOWHEELED SET WHO HAVE BECOME THE NEW OUTLAWS IN MANY AREAS THAT ONCE CELEBRATED THIS TRENDY MODE OF TRANSIT TIME TO CALL IN BRUCE BABBITT'S CONCILIATION SERVICE 9310050024 931005 TECHNOLOGY BRIEF WARNERLAMBERT CO PATENT VIOLATION IS CHARGED IN LAWSUIT BY HOECHST UNIT A UNIT OF GERMANY'S HOECHST AG FILED A LAWSUIT AGAINST WARNERLAMBERT CO CHARGING THAT WARNERLAMBERT'S NEW DRUG TO TREAT ALZHEIMER'S DISEASE COGNEX VIOLATES A PATENT HELD BY HOECHST A HOECHST SPOKESWOMAN SAID THE SUIT WAS FILED SEPT 30 IN FEDERAL COURT IN WILMINGTON DEL BY HOECHSTROUSSEL PHARMACEUTICALS INC THE SPOKESWOMAN SAID IT WAS TOO EARLY TO DETERMINE THE AMOUNT OF DAMAGES THAT MIGHT BE SOUGHT SHE ADDED THAT THE PATENT IN QUESTION IS DESIGNED TO TREAT ALZHEIMER'S PATIENTS FOR MEMORY ENHANCEMENT USING A CLASS OF DRUGS CALLED ACRIDINES TO WHICH BOTH COGNEX AND HOECHST'S MENTANE BELONG WARNERLAMBERT A PHARMACEUTICAL AND CONSUMER PRODUCTS CONCERN SAID IT PLANNED TO CONTEST THE SUIT WE BELIEVE THEIR LEGAL THEORY HAS NO MERIT WE INTEND TO FIGHT THE LAWSUIT AND WE'RE CONVINCED THAT IN A COURT OF LAW WE WILL PREVAIL A SPOKESWOMAN SAID COGNEX THE FIRST APPROVED TREATMENT FOR ALZHEIMER'S WAS APPROVED FOR MARKETING BY THE FDA ON SEPT 9 WARNERLAMBERT BEGAN SHIPPING IT SEPT 28 9310050023 931005 BUSINESS BRIEF GENCORP INC ONETIME CHARGE TO REFLECT RETIREE HEALTH BENEFITS RULE GENCORP INC FAIRLAWN OHIO SAID IT WILL TAKE A ONETIME CHARGE AGAINST EARNINGS DEC 1 TO REFLECT A NEW RULE ON HOW COMPANIES ACCOUNT FOR RETIREE HEALTHCARE LIABILITIES THE MAKER OF REINFORCED PLASTICS COATED FABRICS AND INDUSTRIAL RUBBER PRODUCTS FOR THE AUTO INDUSTRY SAID IT ESTIMATES THE AFTERTAX CHARGE WILL BE BETWEEN 170 MILLION AND 195 MILLION REDUCING SHAREHOLDER EQUITY BY AN EQUAL AMOUNT THE CHARGE WILL BE CARRIED IN THE COMPANY'S FINANCIAL STATEMENTS FOR THE FIRST QUARTER OF FISCAL 1994 THE CHARGE IS SIGNIFICANTLY LOWER THAN THE 280 MILLION TO 385 MILLION THE COMPANY EARLIER PREDICTED THE LOWER CHARGE IS DUE TO A NEW COSTSHARING PROGRAM THE COMPANY IS IMPLEMENTING THAT LIMITS THE AVERAGE AMOUNT IT PAYS ANNUALLY TO PROVIDE RETIREE MEDICAL COVERAGE THE COMPANY ALSO SAID ITS 1994 AFTERTAX EXPENSE FOR RETIREE HEALTH BENEFITS WILL BE SIGNIFICANTLY LOWER THAN PREVIOUSLY PROJECTED THE 1994 INCREMENTAL AFTERTAX EXPENSE IF ANY WILL RANGE FROM ZERO TO 3 MILLION 9310050021 931005 MARKETING & MEDIA IBM CD SYSTEM TO APPEAR IN A BLOCKBUSTER OUTLET REUTER AN INTERNATIONAL BUSINESS MACHINES CORP SYSTEM ALLOWING CUSTOMERS TO CHOOSE MUSIC AND MAKE COMPACT DISKS ON THE SPOT WILL BE SET UP AT A BLOCKBUSTER ENTERTAINMENT CORP STORE LATER THIS YEAR AN OFFICIAL OF IBM WHICH IS BASED IN ARMONK NY SAID THAT THE KIOSK WILL BE IN A BLOCKBUSTER STORE IN DEERFIELD BEACH FLA AND WILL BE THE FIRST TO RESULT FROM IBM'S VENTURE WITH BLOCKBUSTER FIRST ANNOUNCED FIVE MONTHS AGO BLOCKBUSTER BASED IN FORT LAUDERDALE FLA OPERATES A CHAIN OF VIDEORENTAL STORES STEVEN SOLAZZO DIRECTOR OF MULTIMEDIA PROJECTS AT IBM SAID THAT THE VENTURE WILL OPEN UP KIOSKS IN OTHER BLOCKBUSTER LOCATIONS IN 1994 THE SYSTEM WILL ALLOW A CUSTOMER TO SELECT AN ALBUM AND HAVE IT PRINTED ON THE SPOT ON A COMPACT DISK SUBSTITUTING FOR THE THOUSANDS OF DISKS NOW MADE BY RECORDING COMPANIES MR SOLAZZO SAID THAT SINCE IBM ANNOUNCED ITS JOINT VENTURE WITH BLOCKBUSTER ON MAY 11 ABOUT HALF OF ALL RECORD COMPANIES HAVE AGREED TO PROVIDE THE CONTENT FOR THE CDS THE NEW CDS SOLD THIS WAY WILL BE LESS EXPENSIVE THAN CURRENT ONES BECAUSE IBM AND BLOCKBUSTER EXPECT HIGHER SALES VOLUME 9310050020 931005 BUSINESS BRIEF CHEVRON CORP TWO OIL FIELDS IN AUSTRALIA GET DEVELOPMENT CLEARANCE CHEVRON CORP SAID A CONSORTIUM OF WHICH IT IS A MEMBER RECEIVED CLEARANCE FROM AUSTRALIA'S GOVERNMENT TO DEVELOP TWO OIL FIELDS ON AUSTRALIA'S NORTH WEST SHELF CHEVRON SAID THE GROUP ALSO WILL BUILD LIQUID PETROLEUM GAS PRODUCTION FACILITIES IN THE AREA THE SIX MEMBER COMPANIES OF THE CONSORTIUM WILL SHARE THE COMBINED CAPITAL COSTS OF THESE PROJECTS WHICH WILL EXCEED 900 MILLION CHEVRON SAID THE TWO FIELDS WERE DISCOVERED IN 1989 AND 1990 THEY CONTAIN AN ESTIMATED 200 MILLION BARRELS OF RECOVERABLE CRUDE OIL AND ONE ALSO IS RICH IN NATURAL GAS CHEVRON SAID THE SIX EQUAL PARTNERS ARE WOODSIDE PETROLEUM LTD OF MELBOURNE THE OPERATOR CHEVRON'S WHOLLY OWNED SUBSIDIARY CHEVRON ASIATIC LTD BHP PETROLEUM NORTH WEST SHELF PTY LTD OF MELBOURNE BRITISH PETROLEUM PLC'S BP DEVELOPMENTS AUSTRALIA LTD JAPAN AUSTRALIA LNG MIMI PTY LTD AND ROYAL DUTCH/SHELL GROUP'S SHELL DEVELOPMENT AUSTRALIA PTY LTD 9310050019 931005 BUSINESS BRIEF NUMAC ENERGY INC OIL PRODUCER AND SUBSIDIARY PURCHASE RESERVES IN ALBERTA NUMAC ENERGY INC AND ITS 83OWNED SUBSIDIARY CANADIAN ROXY PETROLEUM LTD SAID THEY PAID 24 MILLION CANADIAN DOLLARS US179 MILLION FOR OIL AND GAS PRODUCING PROPERTIES IN ALBERTA NUMAC A CALGARY OIL AND GAS PRODUCER 57OWNED BY A HONG KONG INVESTMENT CONSORTIUM SAID IT CONTRIBUTED 80 TO THE PURCHASE PRICE CANADIAN ROXY PAID 20 NUMAC SAID THE ACQUISITION BOOSTS ITS PRESENCE IN THE FERRIER AREA OF ALBERTA WHERE IT ALREADY OPERATES OIL AND GAS PRODUCTION NUMAC AND CANADIAN ROXY SAID THEY ACQUIRED RESERVES OF 33 MILLION BARRELS OF OIL AND LIQUIDS AND 165 BILLION CUBIC FEET OF SWEET GAS THROUGH THE PURCHASE NUMAC EXPECTS THE ACQUISITION TO BOOST ITS OIL AND GAS PRODUCTION BY ABOUT 4 FROM RECENT LEVELS OF 18500 BARRELS A DAY OF LIQUID AND 115 MILLION CUBIC FEET A DAY OF GAS STEPHEN LETWIN NUMAC'S SENIOR VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER SAID HE EXPECTS NUMAC TO SPEND AN ADDITIONAL C30 MILLION TO C40 MILLION ON OIL AND GAS ACQUISITIONS NEXT YEAR 9310050018 931005 TECHNOLOGY BRIEF HEWLETTPACKARD CO PRICES CUT AS MUCH AS 14 ON SOME DESKTOP PC UNITS HEWLETTPACKARD CO SAID IT CUT PRICES ON A NUMBER OF ITS DESKTOP PERSONALCOMPUTER MODELS AS MUCH AS 14 IN AN EFFORT TO COMPETE IN THE PC PRICE WARS THE PALO ALTO CALIF COMPANY SAID ITS AGGRESSIVE PC PRICECUTTING DURING THE PAST YEAR HAS DOUBLED ITS MARKET SHARE PREVIOUSLY THE COMPANY FAILED TO WIN A SIGNIFICANT PIECE OF THE PC MARKET SHARE WITH MORE EXPENSIVE MACHINES IN ITS LATEST ROUND OF CUTS THE COMPANY REDUCED PRICES ON ITS VECTRA ENTRYLEVEL SYSTEMS 8 TO 14 PRICES FOR THE COMPANY'S HIGHEREND DESKTOP MODELS WERE CUT 2 TO 10 SEPARATELY THE COMPANY SAID IT WILL BEGIN MARKETING A NEW MONOCHROMATIC INKJET PLOTTER THE HP DESIGNJET 200 THAT WILL BE PRICED TO COMPETE WITH ITS PENBASED PLOTTERS THE NEW PLOTTER IS USED TO PRODUCE LARGEFORMAT SCHEMATICS FOR ARCHITECTS AND ENGINEERS HEWLETTPACKARD SAID THE 24INCHWIDE MONOCHROME DEVICE WILL COST ABOUT 2000 LESS THAN THE CHEAPEST COLOR INKJET PLOTTER 9310050017 931005 BUSINESS BRIEF CITIZENS FIRST BANCORP INC NEW JERSEY UNIT PLANS TO SELL SOME LOANS AND REAL ESTATE CITIZENS FIRST BANCORP INC GLEN ROCK NJ SAID ITS NEW JERSEY UNIT AGREED TO SELL ABOUT 42 MILLION IN LOANS AND FORECLOSED REAL ESTATE REDUCING ITS NONPERFORMING ASSETS BY 28 MILLION THE ASSETS ALMOST ALL IN NEW JERSEY WILL BE SOLD TO AN UNNAMED INVESTOR AT 38 OF UNPAID PRINCIPAL BALANCE THE SALE WILL REDUCE NONPERFORMING ASSETS TO BETWEEN 120 MILLION AND 125 MILLION AND RESULT IN A CHARGE TO THE BANK'S ALLOWANCE FOR LOAN LOSSES OF ABOUT 15 MILLION AND A CHARGE TO EARNINGS OF ABOUT 3 MILLION DESPITE THOSE CHARGES THE PARENT COMPANY EXPECTS THIRDQUARTER RESULTS TO BE IN LINE WITH ANALYST EXPECTATIONS OF 65 MILLION TO 67 MILLION OR 13 TO 14 CENTS A SHARE INCLUDING CERTAIN NONRECURRING ITEMS A YEAR EARLIER THE COMPANY EARNED 32 MILLION CITIZENS FIRST BANCORP HAS TOTAL ASSETS OF AROUND 25 BILLION 9310050016 931005 BUSINESS BRIEF BURLINGTON NORTHERN INC RAILROAD WINS COURT ORDER AGAINST TRACK CREWS' STRIKE BURLINGTON NORTHERN INC FORT WORTH TEXAS SAID IT RECEIVED A TEMPORARY RESTRAINING ORDER FROM A FEDERAL DISTRICT COURT JUDGE TO STOP A STRIKE BY TRACK WORKERS MEMBERS OF THE BROTHERHOOD OF MAINTENANCE OF WAY EMPLOYEES STRUCK A 1000MILE SEGMENT OF THE BURLINGTON NORTHERN RAILROAD BETWEEN DENVER AND TEAGUE TEXAS SUNDAY EVENING BURLINGTON NORTHERN THE NATION'S LARGEST RAILROAD HAS ABOUT 25000 MILES OF TRACK THE UNION SAID THE CARRIER HAS REFUSED TO LIVE UP TO PROVISIONS OF A CONGRESSIONALLY IMPOSED CONTRACT DATING TO JULY 1991 THE DISPUTE INVOLVES PAYMENTS FOR MEALS AND LODGING FOR CERTAIN WORKERS A BURLINGTON NORTHERN SPOKESMAN DECLINED TO COMMENT OTHER THAN TO SAY THAT THE COMPANY REGARDS THE MATTER AS A MINOR DISPUTE UNDER THE RAILWAY LABOR ACT HE SAID A HEARING IS SCHEDULED IN FEDERAL DISTRICT COURT IN THE NORTHERN DISTRICT OF ILLINOIS NEXT TUESDAY 9310050015 931005 MAPPING THE MIND PARTIAL RECALL AMNESIA STUDIES SHOW BRAIN CAN BE TAUGHT AT SUBCONSCIOUS LEVEL DISCOVERIES HOLD POTENTIAL FOR IMPROVING LEARNING TREATING MEMORY LOSS A COMPUTER CLASS FOR MS H BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL GLORIA H COMPLETELY FORGETS PEOPLE SHE HAS MET SOON AFTER THEY LEAVE SHE CAN'T REMEMBER THINGS SHE HAS JUST READ OR SEEN EVEN STRONG EMOTIONS FADE OUT WITHIN MINUTES BUT WHAT SCIENTISTS FIND MOST REMARKABLE ABOUT MS H A 40YEAROLD TORONTO RESIDENT WHOSE MEMORY WAS SEVERELY DAMAGED BY A VIRAL BRAIN INFECTION IS WHAT SHE HAS LEARNED TO RECALL OVER MANY PAINSTAKING MONTHS RESEARCHERS AT THE UNIVERSITY OF TORONTO TAUGHT HER HUNDREDS OF PROCEDURES AND RULES NEEDED TO WIN A JOB AS A DATAENTRY CLERK SHE HAS PUSHED TO THE LIMIT WHAT THE BRAIN CAN RETAIN WITH LITTLE HELP FROM WHAT IS COMMONLY CALLED MEMORY SAYS DANIEL SCHACTER ONE OF THE RESEARCHERS NOW AT HARVARD UNIVERSITY AS SCIENTISTS PROBE THE BRAIN THEY ARE BEGINNING TO CLOSE IN ON ANSWERS TO FUNDAMENTAL QUESTIONS WHAT EXACTLY ARE MEMORIES WHERE IN THE BRAIN ARE THEY STORED HOW DOES RAJAN SRINIVASEN MAHADEVAN A NATIVE OF MANGALORE INDIA MANAGE TO REMEMBER THE FIRST 31811 DIGITS OF THE NUMBER PI AMNESIACS LIKE MS H REVEAL THAT MEMORY IS A MAGICIAN ABLE TO PULL RABBITS FROM MANY HATS ONE OF THEM CONTAINS WHAT THE WORD MEMORY USUALLY MEANS CONSCIOUS THINGS LIKE REMEMBERING A FRIEND'S ADDRESS OR WHERE ONE'S GALOSHES ARE BUT SCIENTISTS ARE DISCOVERING THAT A NUMBER OF MEMORY SYSTEMS OPERATE INDEPENDENTLY OF THIS EXPLICIT ONE RECORDING THINGS BELOW THE LEVEL OF CONSCIOUSNESS MS H RELIED LARGELY ON THESE IMPLICIT SYSTEMS TO LEARN HER NEW JOB FATHOMING HOW THESE VARIOUS SYSTEMS OPERATE PROMISES TO HELP IN DIAGNOSING AND TREATING MEMORY LOSS DESIGNING NOVEL COMPUTERS AND PERHAPS EVEN FINDING WAYS TO SHARPEN NORMAL MEMORY BASED ON HOW A BRAIN STRUCTURE CALLED THE HIPPOCAMPUS APPARENTLY ASSEMBLES MEMORIES FOR EXAMPLE RUTGERS UNIVERSITY RESEARCHER MARK GLUCK IS DEVELOPING A NEURAL NETWORK COMPUTER SYSTEM TO ANALYZE VIBRATIONS FROM MACHINERY TO TELL WHETHER BREAKDOWNS ARE IMMINENT SCIENTISTS DON'T YET KNOW HOW MANY IMPLICIT SYSTEMS EXIST AND EXACTLY WHAT THEY ALL DO UNTIL ABOUT 1980 WE DIDN'T REALLY APPRECIATE THE IMPORTANT ROLE THESE NONCONSCIOUS INACCESSIBLE KINDS OF KNOWLEDGE SYSTEMS PLAY SAYS LARRY SQUIRE A NEUROSCIENTIST AT THE UNIVERSITY OF CALIFORNIA AT SAN DIEGO THE IDEA OF MULTIPLE MEMORIES HAS SWEPT THROUGH THE COMMUNITY OF BRAIN RESEARCHERS HE SAYS RESEARCHERS STUDYING EXPLICIT MEMORY REPORT THAT IT TOO CONTAINS MULTIPLE SYSTEMS ONE EXPLICIT SUBSYSTEM SETS UP LONGTERM MEMORIES PROBABLY BY CREATING NEW CONNECTIONS BETWEEN BRAIN CELLS A SEPARATE ONE RETRIEVES RELATED SEPARATELY STORED MEMORIES SUCH AS A PERSON'S FACE VOICE AND NAME YET ANOTHER PERFORMS SHORTTERM JOBS SUCH AS BRIEFLY STORING A PHONE NUMBER BEFORE IT IS DIALED MS H HAS LOST THE FIRST OF THESE THREE SYSTEMS SHE CAN RECALL EXPLICIT MEMORIES FORMED BEFORE HER ILLNESS BUT HAS LARGELY LOST THE ABILITY TO FORM NEW ONES EVEN AFTER LEARNING TO ENTER COMPUTER DATA SHE COULDN'T DESCRIBE DETAILS OF THE PROCEDURES HER FINGERS SEEMINGLY HAD LEARNED BY THEMSELVES WHEN A COWORKER ASKED HER AT LUNCH WHAT JOB SHE WAS LEARNING SHE BECAME FLUSTERED ALL SHE REMEMBERED WAS THAT IT INVOLVED COMPUTERS BUT LIKE A BLINDED PERSON WHOSE EARS GROW SHARPER HER IMPLICIT SYSTEMS SEEM INSPIRED RESEARCHERS SAY THOSE SYSTEMS RECORD SUCH THINGS AS THE MOTOR PROGRAM THAT PERMITS A SMOOTH GOLF STROKE SUBLIMINAL TRACES OF THINGS WE SEE AND HEAR AND CONDITIONED RESPONSES SUCH AS AN AVERSION TO FOODS EATEN BEFORE AN EPISODE OF NAUSEA FOR MS H THESE IMPLICIT MEMORY SYSTEMS APPARENTLY PLAYED A CENTRAL ROLE IN HER LEARNING SOME 250 DATAENTRY RULES SAYS HARVARD'S DR SCHACTER HER FEAT WAS ACCOMPLISHED WITH THE HELP OF A NOVEL TEACHING TECHNIQUE HE DEVISED WITH COLLEAGUE ELIZABETH GLISKY TO TEACH MS H ABOUT THE SAVE COMPUTER COMMAND FOR EXAMPLE THEY FIRST SHOWED HER A SENTENCE LIKE TO STORE DATA TYPE SAVE THEN THEY ASKED HER TO COMPLETE THE SENTENCE MISSING ITS FINAL E WHEN SHE MASTERED THAT THEY ASKED HER TO COMPLETE IT WITH TWO LETTERS VE MISSING AND SO ON UNTIL SHE COULD FILL IN ALL FOUR LETTERS OF SAVE AFTER MANY REPETITIONS HER ASSOCIATION BETWEEN THE COMMAND'S DEFINITION AND THE WORD FOR IT BECAME AUTOMATIC THE METHOD SAYS DR SCHACTER TAPS INTO THE PRIMING SYSTEM A FORM OF IMPLICIT MEMORY THAT AUTOMATICALLY RECORDS SUBLIMINAL TRACES OF VISUAL PERCEPTIONS AND SOMETIMES FOR HOURS AFTERWARD PREDISPOSES US TO FILL IN MISSING INFORMATION IN WAYS THAT MATCH THE RECENTLY SEEN PATTERNS PROVING THAT SUCH SUBLIMINAL TRACES EXIST IS TRICKY IN ONE EXPERIMENT NORMAL PEOPLE WATCHED A SCREEN AS ABSTRACT GEOMETRIC SHAPES WERE FLASHED ON IT TOO BRIEFLY TO BE CONSCIOUSLY PERCEIVED WHEN LATER SHOWN PAIRS OF SHAPES A NEW ONE AND ONE FROM THE FLASHED GROUP AND ASKED WHICH ONE THEY PREFERRED THEY TENDED TO PICK THE ONE THEY HAD SEEN SUBLIMINALLY ON THE TV SCREEN SIMILAR STUDIES SUGGEST SUBLIMINAL TV ADVERTISING WITH BRIEFLY FLASHED WORDS COULD INDEED HAVE SOME BIASING POWER BUT THIS PARTICULAR PRIMING EFFECT SEEMS TO FADE OUT FAST LONG BEFORE WE REACH THE STORE OTHER STUDIES SHOW THE BRAIN HAS A SEPARATE SYSTEM FOR AUDITORY PRIMING CAUSING US TO PICK UP ON THINGS WE HEAR WITHOUT CONSCIOUSLY REALIZING IT RESEARCH SUBJECTS WHO ARE ASKED TO LISTEN TO GARBLED SPOKEN WORDS AND WRITE THEM DOWN FOR EXAMPLE TEND TO INTERPRET THE SOUNDS AS WORDS THEY HAVE RECENTLY HEARD ALTHOUGH SEPARATE TESTS SHOW THEY DON'T CONSCIOUSLY RECALL HAVING HEARD THEM HARVARD'S DR SCHACTER AND COLLEAGUES HAVE SHOWN THAT THE AUDITORY PRIMING SYSTEM MAY ITSELF BE BROKEN DOWN INTO LEFT AND RIGHTBRAIN SUBSYSTEMS CUSTOMIZED FOR RECORDING DIFFERENT ASPECTS OF SOUND ALL THIS DIVISION OF MEMORY LABOR APPARENTLY STARTED LONG AGO AS BRAINS EVOLVED TO TACKLE EVER HARDER MORE VARIED PROBLEMS YOU HAVE THESE FUNDAMENTALLY DIFFERENT JOBS TO DO WITH MEMORY SAYS SAN DIEGO'S DR SQUIRE WITH IMPLICIT MEMORY SUCH AS THE MOTORSKILLLEARNING SYSTEM YOU GRADUALLY ACQUIRE INVARIANT INFORMATION THINGS THAT REPEAT IN CONTRAST A HUNTER TRACKING A DEER MUST RAPIDLY FORM MANY NEW ASSOCIATIONS SUCH AS A SERIES OF LANDMARKS TO GET HOME HIS BRAIN IS CALLED ON TO RAPIDLY JOT DOWN WHAT'S DIFFERENT FROM MOMENT TO MOMENT SAYS DR SQUIRE THAT IS WHAT THE EXPLICIT MEMORY SYSTEM DOES BEST PEOPLE LIKE MR MAHADEVAN THE INDIAN MEMORY ATHLETE WHO CAN REEL OFF THE 30000PLUS DIGITS OF PI HAVE PUSHED THIS EXPLICIT MEMORY ABILITY TO AN EXTREME AMONG HIS MAIN ASSOCIATIONAL CUES FOR LEARNING LISTS OF NUMBERS ARE THEIR POSITIONS IN ROWS OF DIGITS THAT HE LEARNS SAYS CHARLES THOMPSON A KANSAS STATE UNIVERSITY PSYCHOLOGIST WHO HAS STUDIED HOW MR MAHADEVAN DOES IT THUS WHEN HE OCCASIONALLY SLIPS IN RECITING DIGITS OF PI HE MIGHT JUMP DOWN SEVERAL ROWS ON THE PRINTOUTS HE HAS STUDIED AND PICK UP WITH THE FOURTH NUMBER IN THE NEW ROW AFTER LEAVING OFF WITH THE THIRD NUMBER IN THE ROW ABOVE RESEARCHERS STILL DON'T KNOW WHY HIS BRAIN CAN SO READILY FORGE THESE EXPLICITMEMORY LINKS INDEED AS PEOPLE BECOME MORE SKILLED AT SOMETHING THEIR MENTAL PROCESSING BECOMES MORE OPAQUE BECAUSE THEY'RE DOING MORE OF IT AUTOMATICALLY SAYS DR THOMPSON ONE DEMONSTRATION OF HOW THIS AUTOMATIC PROCESSING CAN REPLACE EXPLICIT MEMORY IS FOR A PERSON TO TRY TO CALL UP THE EXACT MOTIONS THE FINGERS GO THROUGH WHEN TYING A SHOE AND THEN COMPARE THAT EXPLICIT MEMORY WITH WHAT THE FINGERS ACTUALLY DO WHEN TYING THE SHOE MOST PEOPLE WILL FIND THAT THEIR EXPLICIT MEMORY OF THE FINGER MOTIONS HAS FADED CONSIDERABLY FROM DISUSE BUT WHEN SOME OF THE BRAIN'S HIDDEN MEMORY MECHANISMS BREAK DOWN THEIR FUNCTIONS BECOME ALL TOO OBVIOUS ONE OF THE FIRST BREAKAGES SUGGESTING MEMORY'S MULTIPLE NATURE OCCURRED IN A WOMAN WITH PERMANENT AMNESIA CAUSED BY CHRONIC ALCOHOLISM IN 1911 FRENCH PSYCHOLOGIST E CLAPAREDE DESCRIBED HOW IN A CURIOUS EXPERIMENT HE SHOOK HANDS WITH HER PRICKING HER PALM WITH A HIDDEN PIN BETWEEN HIS FINGERS SHE SOON FORGOT THE EPISODE AS SHE DID ALL NEW EVENTS IN HER LIFE BUT LATER DREW BACK WHEN HE OFFERED TO SHAKE HANDS WITH HER AGAIN WHEN ASKED WHY SHE OFFERED A HUNCH BASED ON OBSERVING HER OWN REFLEXIVE ACTION SOMETIMES PINS ARE HIDDEN IN PEOPLE'S HANDS IN MR CLAPAREDE'S DAY SUCH CASES INSPIRED SPECULATIVE THEORIES ABOUT THE SUBCONSCIOUS LATER RESEARCHERS SOUGHT MORE DOWNTOEARTH EXPLANATIONS BUT WERE HAMPERED BY A CRITICAL PROBLEM THEY COULDN'T CLEARLY DISTINGUISH MEMORY LOSS FROM OTHER KINDS OF MENTAL DEFICITS THAT INVARIABLY OCCURRED IN BRAININJURED PEOPLE ALL THAT CHANGED IN THE 1960S HOWEVER WHEN BRAIN EXPLORERS TOUCHED DOWN IN THE STRANGE TIMELESS WORLD OF HM CONSIDERED MEDICINE'S MOST THOROUGHLY STUDIED PATIENT HM SUFFERED FROM SEVERE AND WORSENING EPILEPTIC SEIZURES UNTIL AGE 27 WHEN IN 1953 A SURGEON REMOVED HIS HIPPOCAMPUS AND NEARBY BRAIN TISSUES BECAUSE IT WAS BELIEVED THESE PARTS OF THE BRAIN WERE SPARKING HIS FITS AT FIRST THE EXPERIMENTAL PROCEDURE SEEMED A GRAND SUCCESS HIS RAPIDFIRE SEIZURES ENDED BUT IT SOON BECAME CLEAR SOMETHING HAD GONE TRAGICALLY WRONG LIKE GLORIA H HE HAD LOST THE ABILITY TO FORM NEW MEMORIES SCIENTISTS HAD NEVER SEEN AMNESIA QUITE LIKE HM'S HIS LOSS RESEMBLED A CLEANLY SEVERED LIMB IT LEFT HIS MIND ESSENTIALLY INTACT INCLUDING MEMORIES OF YOUTH WHILE NEATLY EXCISING HIS ABILITY TO REMEMBER ANYTHING NEW FOR MORE THAN A FEW MINUTES HM DOESN'T RECOGNIZE ANYONE HE HAS MET SINCE HIS SURGERY AND DOESN'T KNOW WHERE HE LIVES OR HOW OLD HE IS HE IS SURPRISED OVER AND OVER BY THINGS THAT HAVE CHANGED SINCE THE 1950S WHEN YOU TELL HIM HIS PARENTS ARE DEAD HE TEARS UP GRIEFSTRICKEN ANEW ALTHOUGH THEY DIED MANY YEARS AGO SAYS SUZANNE CORKIN A MASSACHUSETTS INSTITUTE OF TECHNOLOGY RESEARCHER WHO HAS STUDIED HIM FOR MORE THAN TWO DECADES BUT HM WHO LIVES IN A CONNECTICUT NURSING HOME AND STILL PARTICIPATES IN RESEARCH CAN CONVERSE INTELLIGENTLY ABOUT GROWING UP IN THE 1930S WORK CROSSWORD PUZZLES AND DO OTHER MENTAL TASKS BASED ON LONGTERM MEMORY THUS HIS LOSS HAS REVEALED THAT THE HIPPOCAMPAL REGION IS NEEDED TO FORM NEW LONGTERM MEMORIES BUT ISN'T NECESSARY TO RETRIEVE MEMORIES ALREADY STORED AWAY HM'S CASE ALSO SHOWS THE HIPPOCAMPUS ISN'T NECESSARY TO FORM SHORTTERM MEMORIES A SCIENTIST STUDYING HIS SENSE OF TIME ONCE LEFT HIM IN A ROOM AT 205 PM RETURNED AT 217 AND ASKED HIM TO ESTIMATE HOW LONG HE HAD BEEN ALONE TO THE RESEARCHER'S ASTONISHMENT HM TRIUMPHANTLY EXCLAIMED TWELVE MINUTES GOT YOU THERE HE HAD CHECKED A WALL CLOCK AFTER BEING TOLD HE WOULD LATER BE ASKED TO ESTIMATE ELAPSED TIME THEN MENTALLY REPEATED 205 TO HIMSELF LIKE A MANTRA KEEPING IT IN MIND EVEN AS THE CONVERSATION PROMPTING HIM TO DO SO QUICKLY FADED OUT IN 1962 A NEW CHAPTER OPENED IN HIS STORY WHEN MCGILL UNIVERSITY RESEARCHER BRENDA MILNER SHOWED HE COULD ALSO FORM MEMORIES HE WASN'T AWARE OF IN ONE STUDY HE WAS ASKED TO COPY SIMPLE LINE DRAWINGS WHILE WATCHING HIS WRITING HAND IN A MIRROR A TASK THAT NORMAL PEOPLE FIND TRICKY AT FIRST BUT THAT GRADUALLY GETS EASIER WHEN REPEATED HM IMPROVED WITH PRACTICE AND RETAINED THE SKILL FOR MONTHS AS A NORMAL PERSON DOES WHILE SOON FORGETTING HOW HE LEARNED IT OVER THE YEARS STUDIES ON HM'S INTACT IMPLICIT MEMORY ABILITIES HAVE HELPED SPAWN THE IDEA OF MULTIPLE MEMORY SYSTEMS BUT SCIENTISTS SURPRISINGLY WERE THWARTED WHEN THEY TRIED TO STUDY HIS IMPLICIT SYSTEM FOR CONDITIONED RESPONSES THEY PLANNED TO PAIR A MILD ELECTRIC SHOCK TO THE ANKLE WITH A STIMULUS SUCH AS A BELL CONDITIONING HIM TO JERK HIS ANKLE AWAY WHEN IT WAS RUNG IT DIDN'T WORK ALTHOUGH HE FELT THE SHOCKS SOMETHING IN HIS BRAIN PREVENTED HIM FROM EXPERIENCING THEM AS PAINFUL IN LATER STUDIES MIT'S DR CORKIN AND COLLEAGUES FOUND THAT HM ALSO LACKS THE ABILITY TO RECORD INTERNAL STATES SUCH AS A FEELING OF HUNGER FOR INSTANCE THEY QUIETLY PLACED A TRAY OF FOOD IN FRONT OF HIM A MINUTE AFTER HE HAD EATEN HIS USUAL DINNER HE METHODICALLY ATE THE SECOND DINNER SOON FORGETTING WHICH MEAL HE WAS ON AS WELL AS WHAT AND WHEN HE HAD EATEN THEN 20 MINUTES LATER SAID HE FELT SOMEWHAT HUNGRY SUCH FINDINGS BUTTRESSED BY EXPERIMENTS IN WHICH HM LIKE SURGERIES ARE PERFORMED ON MONKEYS INDICATE THAT A MISSING PART OF HIS BRAIN CALLED THE AMYGDALA HELPS LINK EMOTIONS TO THOUGHTS AND PERCEPTIONS ACCORDING TO NATIONAL INSTITUTES OF HEALTH RESEARCHER MORTIMER MISHKIN IT MAY SERVE AS A KIND OF MEMORY GATEKEEPER THAT HELPS TO BURN IN MEMORIES ACCOMPANIED BY STRONG FEELINGS SUCH AS WHERE ONE WAS UPON HEARING THAT JOHN F KENNEDY HAD BEEN SHOT SCIENTISTS NOW THEORIZE THAT EXPLICIT MEMORIES INITIALLY ARE STORED MAINLY AS PATTERNS OF ACTION IN NEURONS OF THE HIPPOCAMPUS OVER TIME THESE TEMPORARY PATTERNS SOMEHOW ARE TRANSLATED INTO NEW NEURAL CIRCUITRY IN DIFFERENT BRAIN AREASMEMORY RECORDS THAT CAN SURVIVE LOSS OF THE HIPPOCAMPUS AS HM'S CASE SHOWS HARVARD PSYCHOLOGIST STEPHEN KOSSLYN COMPARES THE PROCESS TO ACTIVATION OF A ROBOT THAT CONTINUALLY ROLLS ALONG A PATTERN ON A LAWN AT FIRST THE PATTERN'S SHAPE IS ENCODED BY THE ROBOT'S MOTION BUT GRADUALLY GRASS IS WORN AWAY CARVING OUT A PHYSICAL RECORD THAT REMAINS AFTER IT LEAVES FOR ALL THE ADVANCES IN MEMORY RESEARCH ITS FUNDAMENTAL NATURE INCLUDING HOW ITS PARTS COMBINE TO CREATE THE CONSCIOUS WHOLE WE EXPERIENCE AS THE SELF REMAINS A MYSTERY BUT HM OFFERS SOME GUIDANCE ON THESE DEEPER QUESTIONS TOO AND HIS EXPERIENCE SUGGESTS THE RANGE OF THINGS THAT ANY COMPELLING THEORY OF MEMORY MUST ENCOMPASS EVERY DAY IS ALONE IN ITSELF HE HAS SAID WHATEVER ENJOYMENT I'VE HAD AND WHATEVER SORROW I'VE HAD IT IS LIKE WAKING FROM A DREAM